<PAGE>
BB&T Funds
Sensible Investing for Generations
[GRAPHIC]
Semi-Annual
Report
To Shareholders
March 31, 2000
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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 semi annual report for the six months ended
March 31, 2000. A period during which the markets treated investors to the
loftiest of highs, the most humbling of lows and just about every emotion in
between.
As for our fund family, it was a time of change, revitalization and excitement.
In December 1999, we introduced the BB&T Intermediate Corporate Bond Fund, to
help you, our shareholders, take advantage of historically generous yield
opportunities in the corporate debt market. Joining our Intermediate U.S.
Government Bond Fund, Short-Intermediate U.S. Government Income Fund, three
municipal bond funds and two money market options, the Intermediate Corporate
Bond Fund completes a truly expansive lineup. In our opinion, this lineup gives
fixed-income investors just about every choice they need to generate income or
diversify their portfolios.
In addition, in December, we took steps to build on a cross-disciplinary team
approach that enables you to benefit from the pooled expertise of BB&T's
investment resources, including our investment and risk management
professionals and our proprietary analytical tools.
Therefore, we formally established four portfolio management teams, each were
assigned responsibility for managing individual funds:
Fixed Income Portfolio Management Team
Intermediate U.S. Government Bond Fund
Short-Intermediate U.S. Government Income Fund
Intermediate Corporate Bond Fund
North Carolina Intermediate Tax-Free Fund/1/,/2/
South Carolina Intermediate Tax-Free Fund/1/,/2/
Virginia Intermediate Tax-Free Fund/1/,/2/
U.S. Treasury Money Market Fund/3/
Balanced Portfolio Management Team
Balanced Fund
Capital Manager Growth Fund
Capital Manager Moderate Growth Fund
Capital Manager Conservative Growth Fund
Value Equity Portfolio Management Team
Growth and Income Stock Fund
Growth Equity Portfolio Management Team
Large Company Growth Fund
This shift to a team concept for the majority of our funds will enhance our
internal management processes and add value to the services we provide to you.
The BB&T International Equity Fund/5/ has also switched from an individual
portfolio manager to a team management. The BB&T International Equity Fund/5/,
Small Company Growth Fund/4/ and Prime Money Market Fund/3/ continue to be
managed superbly by their respective subadvisors.
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/1/The Fund's income may be subject to certain state and local taxes and,
depending on one's tax status, to the federal alternative minimum tax.
/2/Regional investing may incur additional risks since investments are limited
to one geographical area.
/3/An investment in the Fund is not insured nor guaranteed by the FDIC or any
other governmental 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.
/4/Small-capitlization 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.
/5/International investing involves increased risk and volatility.
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Stocks: A Cold Shower Douses the Sizzling Tech Rally
For some time, we had been concerned about the extraordinarily high valuations
of the relative handful of white-hot technology stocks driving market indices
higher the last two years. With prices soaring to levels, we believed to be
unsustainable, we recommended that investors diversify across many different
assets classes--a good rule in any type of market.
Nevertheless, the tech-powered NASDAQ Composite Index/6/ rose ever higher
through the first five-and-a-half months of the period, peaking on March 10.
Then came a reversal so quick and grave that it took away the breath of many
investors truly unaware that stocks can sink as fast as they rise. As we write
this letter near the end of April, the NASDAQ has shown some signs of life, but
the average is still 28 percent below its peak. The Dow Jones Industrial
Average/7/ and the S&P 500 Index/8/ also are down from their best levels,
though much less dramatically than the NASDAQ.
Looking ahead, we do not see this volatility slowing any time soon. The Federal
Reserve Board (the "Fed") has committed itself to preventing an eruption of
inflation and rising interest rates are never good news for stocks. The
consumer is still spending money at a feverish pace, wage costs are rising and
excess manufacturing capacity has disappeared; we believe these circumstances
could fuel inflation fears going forward.
Having sounded that note of caution, we are still very positive about the stock
market over the next six to 12 months. The economy is healthy--the longest
economic expansion in U.S. history continued through the first quarter of 2000.
In our opinion, we do not see a major recession on the horizon, although we
will not be surprised by a slowdown later in the year. However, if active,
prudent stock picking has been important in the past, it will be even more
critical to our, and your, success in the future. We feel investors will become
more selective, especially in the technology and biotech sectors, insisting on
not just the promise of revenues, but real, sustainable earnings growth.
Bonds: Treasury Curve Inversion Rewards Long Bonds
Committed to dampening any threat of inflation, the Fed raised short-term
interest rates three times during the period: on November 16, February 2 and
March 21 (the March decision marked the fifth consecutive rate hike in nine
months). Normally, higher rates translate into lower bond prices, as rates and
prices move in opposite directions. That was precisely what fixed-income
investors saw happen on the short end of the yield curve, the region most
directly affected by the Fed's actions.
The long end of the yield curve, however, was a different story. Impressed by
the U.S. Treasury's announcement of a future buyback of long-term debt and
convinced that long-term rates would eventually decline, fixed-income investors
bid up the prices of long bonds.
As a result, the U.S. Treasury yield curve became fully inverted, with short-
term yields higher than long-term yields. As you will read in the individual
fund reports that follow this letter, we feel that we correctly anticipated
this turn of events and our shareholders profited from our decision to lengthen
the average maturities of our bond portfolios. (Note: Going forward, we will be
measuring the interest-rate sensitivity of our fixed-income funds by
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/6/NASDAQ Composite Index is a market capitalization price-only index that
tracks the performance of domestic common stocks traded on the regular NASDAQ
market, as well as National market System-traded foreign common stocks and
American Depositary Receipts.
/7/The Dow Jones Industrial Average is a price-weighted average based on the
price movements of 30 blue-chip stocks.
/8/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.
Investors cannot invest directly in an index, although they can invest in the
underlying securities.
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"duration," rather than average maturity. An accurate measure of bonds' price
risk, duration will enable us to more effectively manage our fixed-income
portfolios for shareholders.)
However, in this fast-changing market, what is past is very old news and we are
forward thinking investors. With that in mind, we believe that the Fed is far
from done in its fight against inflation. We expect at least two more rate
increases this year, and even that might not be the end of it. Despite Fed
Chairman Alan Greenspan's fondness for making highly enigmatic public
statements, he has been perfectly clear on one issue: The Fed will continue to
raise rates until the members of the Federal Open Market Committee feel that
inflation is under control.
What are the implications for stocks and bonds in such a highly charged,
interest-rate environment? We do not pretend to know where the averages will
stand when the dust settles, but we are fairly certain that we are in for a
period of continued market gyrations. The last six months have reinforced the
fact that the markets are nothing, if not capricious and mercurial.
Nevertheless, with uncertainty, comes opportunity. Therefore, we pledge to
remain sensible, yet opportunistic, managers of your money.
As always, 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+
During the most recent six months, we experienced strong performance from
international markets; there were strong returns across the board for
international funds in general, and our Fund in particular.
The period was split quite neatly into two distinct calendar quarters. Most of
the Fund's returns, in absolute terms, came during the fourth quarter of 1999,
while the first quarter of 2000 was basically flat for foreign stocks.
The big story at the beginning of the period was Y2K, or rather, the lack of
Y2K-related issues that had been widely feared. By the time we got to October
and early November, most governments were saying that their Y2K testing had
been completed and that few problems were anticipated. Consequently, the
markets became much more sanguine about Y2K and stock prices began to move
sharply higher, sparking an explosive year-end rally--particularly in some of
the smaller markets, such as Hong Kong, Singapore and Scandinavia. For example,
Finland's stock market was up 111% for the period as a whole.
In the second half of the period, the first quarter of 2000, a different story
emerged, as the MSCI EAFE Index/1/ was flat. Nevertheless, technology stocks
around the world were very strong for most of the quarter. In fact, the
technology, media and telecommunications areas have been global themes for some
time.
We are changing our Tune about Japan
For most of the six-month
period, we liked technology and
telecom stocks in Continental
Europe. We were underweighted
in Japan, which was fortuitous,
as many high-flying technology
issues in Japan peaked out, and
then declined, much earlier
than they did in the U.S. and
the rest of the world. Instead,
when we were buyers in Japan,
we focused on domestic economy
stocks.
Going forward, we believe the
economic numbers in Japan
indicate that the country's
recent technical recession may
be ending. While fourth
quarter, Gross Domestic
Products/2/ numbers were
negative, more recent
indicators point to an uptick
in industrial production,
retail sales and property
prices. Consequently, we have
been taking some money out of
European tech stocks and
putting that capital to work in
Japan.
Average Annual Total Return
As of 3/31/00
Inception Since
Class Date 6 Month++ 1 Year Inception
A Shares* 1/2/97 15.87% 26.84% 13.73%
B Shares** 1/2/97 15.85% 27.74% 13.90%
Trust Shares 1/2/97 21.54% 33.20% 15.73%
* Reflects 4.50% maximum sales charge
** Reflects the applicable maximum contingent deferred sales charge.
++ Aggregate Total Return
As of March 31, 2000, approximately 45.3% of the Fund's holdings was invested
in Continental Europe, 14.8% in the United Kingdom, 22.0% in Japan, 5.6% in
other Pacific Basin countries, 9.9% in the world's emerging markets and 2.4% in
cash and cash equivalents.*
The top five equity holings in the Fund were Vodaphone Airtouch (4.5% of the
portfolio's assets), Nokia (3.2%), Ericsson (2.5%), Total Fina ELF S.A. (2.1%)
and Repsol S.A. (2.0%).*
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+ International investing involves increased risk and volatility.
/1/The Morgan Stanley Capital International Europe Australasia and Far East
Index (EAFE) is an unmanaged index generally representative of the
performance of stock markets in that region.
/2/The Gross Domestic Product ("GDP") is a market value of the goods and
services produced by labor and property in the United States. GDP is made up
of consumer and government purchases, private domestic investments, and net
exports of goods and services. Figures for GDP are released by the Commerce
Department on a quarterly basis.
* The composition of the Fund's holdings is subject to change.
Some of the fees of the BB&T Funds are currently being waived, resulting in
higher total returns than would occur if the full fees were charged.
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.
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The BB&T Small Company Growth Fund
In terms of performance, this was a big, six-month period for us. Starting in
the fourth quarter of 1999, the technology and biotech sectors got into high
gear and began accelerating. It was to our advantage to be very heavily
weighted in these two sectors, which provided us with extraordinary
performance. At one point, we had about 55% of the Fund's assets invested in
technology, with another 14-15% in biotech names; both weightings were far
above average. Consequently, we had a substantial portion of the portfolio
invested in the two areas that were seeing so much positive action at the time.
There were a number of interesting factors at play. In biotech, investors were
speculating on the sector's future earnings power. There is a race going on to
develop new pharmaceutical compounds; success in this area depends upon some
very esoteric abilities to engineer specific drugs and therapies based upon the
mapping of the human genome. While the argument could be made that good
fundamentals are in place--if you consider some of these companies' potential,
rather than, current growth--what was driving prices higher simply was
investors' desire to be on board a winner.
There was a bit more diversification responsible for the success of technology
stocks. Internet companies specializing in business-to-business services
throughout the six-month period drove up share prices. In the first quarter of
2000, we also saw computer chip demand build up, while semiconductor equipment
manufacturers did well.
Down the road, volatility and opportunity
Not surprisingly, considering
the Fund's total return, we
had a number of big winners.
Pinnacle Holdings (2.0% of
the portfolio's assets),
which leases space on
microwave towers, was a good
stock for us. In biotechs,
Shire Pharmaceutical (1.4%)
did very well, while
Millenium Pharmaceutical
(0.5%) was a super stock for
us. We also got great
performance from SDL, Inc.
(2.5%), Calpine (1.4%) and
Titan Industries (1.0%)--
which manufacturers equipment
that effectively kills
bacteria in meat.*
Average Annual Total Return
As of 3/31/00
Since
Class 6 Month++ 1 Year 5 Year Inception
A Shares* 12/7/94 67.29% 88.05% 29.93% 31.23%
B Shares** 1/2/96/1/ 69.55% 91.46% 30.22% 31.51%
Trust Shares 12/7/94 75.41% 97.37% 31.53% 32.73%
* Reflects 4.50% maximum sales charge
** Reflects the applicable maximum contingent deferred sales charge.
++ Aggregate Total Return
Looking forward, we believe
investors should expect a
high level of volatility.
Many stocks still have very
high valuations that might
not be sustainable. On a
longer-term basis, we are
fairly optimistic; we do not feel that the underlying fundamentals of the
market have suffered any appreciable deterioration. The economy still appears
to be solid, corporate earnings are generally strong, inflation still seems to
be pretty much under control.
As of March 31, 2000, the top five equity holdings in the Fund were SDL Inc.
(2.5% of the portfolio's assets), Applied Micro Circuits (2.0%), Pinnacle
Holdings (2.0%), Qlogic Corp. (2.0%) and Peregrine Systems (1.8%).*
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+ 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.
/1/Class B Shares were not in existence prior to 1/1/96. Performance calculated
for any period up to and through 1/1/96 is based upon the historical
performance of Class A Shares and is adjusted for CDSC, but does not include
any 12b-1 fees, which if reflected, performance would have been lower.
* The composition of the Fund's holdings is subject to change.
Some of the fees of the BB&T Funds are currently being waived, resulting in
higher total returns than would occur if the full fees were charged.
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.
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The BB&T Large Company Growth Fund
Market leadership was very narrow during the period, with most investor
interest focused squarely, and solely, on a handful of large-cap, technology-
related names. Fortunately, we were overweighted in tech for most of the
period. Toward the latter half of the fourth calendar quarter of 1999, we
increased the portfolio's weighting in technology from about 38% to roughly
43%. We did that because many growth stocks we liked were coming off their lows
and we felt they offered compelling value.
In hindsight, this was a prudent move, as the tech sector really took off in
October and kept its momentum, more or less, into the second week of March.
As we entered 2000, we started trimming back some holdings that had produced
huge run-ups and appeared overvalued by our standards. Once again, our
foresight was rewarded, as the tech sector ended the period by giving back much
of its earlier gain.
Strong, Familiar Stocks and some
new, Promising Names
Nevertheless, we are still
positive about a certain class
of technology stocks: those with
strong earnings growth,
innovative product lines and
dominant market positions. For
example, during the period we
added to our positions in such
stalwarts as Oracle (3.1% of the
portfolio's assets) and Cisco
(4.2%). We also bought into
less-recognizable, yet promising
stocks that were new to the
Fund: Solectron (1.7%), Kla-
Tencor (2.0%) and Symbol
Technology (2.4%).*
Another stock we added to the
Fund last fall was Corning
(3.7%), which had a notable run-
up and added significantly to
our overall return.*
Average Annual Total Return
As of 3/31/00
Inception Since
Class Date 6 Month++ 1 Year Inception
A Shares* 10/3/97 33.27% 34.67% 23.76%
B Shares** 10/3/97 34.04% 35.99% 24.35%
Trust Shares 10/3/97 39.76% 41.17% 26.35%
* Reflects 4.50% maximum sales charge
** Reflects the applicable maximum contingent deferred sales charge.
++ Aggregate Total Return
Generally, we added to what we felt were the strongest positions in the
portfolio, while buying into new, high-momentum names that were popping up on
the screens we use in our quantitative process.
As of March 31, 2000, the top five equity holdings in the Fund were Microsoft
(4.3% of the portfolio's assets), Cisco (4.2%), General Electric (4.1%),
Corning (3.7%) and Intel (3.5%).*
Volatility Demands Diligence
Over the next six months, we anticipate a heightened awareness of company
performance; investors will ask, "Does this company deliver a product that
people really want to buy?" or "Does it provide a service that people really
need or want?" Earnings will be scrutinized very closely. If a company doesn't
have earnings, investors will want to know why, what is management doing, when
can earnings be expected?
These are the characteristics that are going be very important to growth stocks
going forward. As for technology companies, we believe those that do not have
earnings or report disappointing earnings, are going to frustrate investors,
perhaps even shock them.
With all the volatility we expect to see in the market, it will be even more
important than ever to select the very best growth opportunities we can find.
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* The composition of the Fund's holdings is subject to change. Some of the fees
of the BB&T Funds are currently being waived, resulting in higher total
returns than would occur if the full fees were charged.
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.
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The BB&T Growth and Income Stock Fund
The last two years have been a very rough time for investors with a value
orientation, as a small number of large-cap growth stocks have dominated market
action, with very few exceptions.
This "bifurcation," a complete disconnect between a virtual handful of high-
flying technology stocks and the thousands of other issues in non-tech sectors,
continued through most of the recent six months. To illustrate, the Nasdaq--
where most technology stocks are listed--gained more than 66 percent during the
period. At the same time, the Value Line Geometric Index/1/--which closely
represents the average performance of all individual stocks--rose just 2.6
percent.
Funds that have not been heavily invested in just the right stocks, in just the
right sectors (namely, technology, biotech and telecommunications), have
trailed the major indices by wide margins.
Diversified Value Investment Philosophy
In a super-heated tech
environment, such as the one
we have recently seen, good
performing value
opportunities have been few
and far between. This
environment has not favored
our disciplined diversified
value investment approach. An
approach that emphasizes the
stocks of seasoned,
financially strong, large-to-
mid-sized companies, trading
a reasonable valuations.
Over the longer-run, we
firmly believe that a
consistently applied, value
oriented investment strategy
will generate attractive
returns for investors. Our
confidence in value investing
is based on market data and
research accumulated over the
last eight decades.
Average Annual Total Return
As of 3/31/00
Inception Since
Class Date 6 Month++ 1 Year 5 Year Inception
A Shares* 10/9/92 (3.27)% (2.62)% 15.17% 13.63%
B Shares** 1/2/96/2/ (3.78)% (2.58)% 15.36% 13.82%
Trust Shares 10/9/92 1.34% 2.15% 16.51% 14.61%
* Reflects 4.50% maximum sales charge
** Reflects the applicable maximum contingent deferred sales charge.
++ Aggregate Total Return
Value-Oriented Economic Sector Exposure Increased
The portfolio's exposure to value-oriented economic sectors (financial
services, basic materials and utilities) has been increased; these areas of the
stock market contain many financially strong, growing companies, that trade at
reasonable multiples of earnings, cashflow, and assets.
As of March 31, 2000, the top five equity holdings in the Fund were AT&T Corp.
(3.2% of the portfolio's assets), IBM Corp. (2.8%), Hewlett Packard Co. (2.8%),
J.P. Morgan & Co (2.5%), and SBC Communications, Inc. (2.4%).*
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/1/The Value Line Geometric Index is an unmanaged index that tracks and ranks
1,700 stocks for timeliness and safety based on the best or worst relative
price performance over a 6 to 12 month period, each stock is assigned a risk
rating, which identifies the volatility of a stock's price behavior relative
to the market average.
/2/Class B Shares were not in existence prior to 1/1/96. Performance calculated
for any period up to and through 1/1/96 is based upon the historical
performance of Class A Shares and is adjusted for CDSC, but does not include
any 12b-1 fees, which if reflected, performance would have been lower.
* The composition of the Fund's holdings is subject to change.
Some of the fees of the BB&T Funds are currently being waived, resulting in
higher total returns than would occur if the full fees were charged.
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.
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The BB&T Balanced Fund
A balanced fund such as ours relies on diversification and asset allocation to
fulfill its objectives for shareholders, and based upon prevailing and shifting
market conditions during the period, the Fund did its job.
The Fund's fixed-income portfolio delivered very strong performance, thanks to
steps we took early in the period. Anticipating lower, long-term interest
rates, we added some longer-maturity bonds and extended the Fund's average
effective maturity. When market forces did, indeed, push long-term rates lower,
we realized significant profits (bond prices rise when rates fall).
On the equity side, our value orientation hindered results for much of the
period, as investors continued to focus on a very narrow handful of technology
issues, to the exclusion of nearly all other types of stocks. In March, however
(and leading into April), market sentiment rotated away from tech and toward
exactly the kinds of stocks we were holding.
We Made Some Prudent Adjustments
We have come to understand
that many shareholders use
the BB&T Balanced Fund as a
single, complete asset-
allocation tool--that is,
they rely on the Fund to
provide a broad range of
individual portfolio
diversification on its own,
rather than in conjunction
with other funds. Therefore,
we decided that the fixed-
income portion of the Fund
needed to look more like the
bond market in aggregate.
That is one reason why we
added longer-maturity bonds,
a healthy dose of corporate
securities, along with pass-
through mortgages. While we
did not attempt to imitate
any particular benchmark
composition, we believe we
now own an even better blend
of fixed-income securities
than we had in the past; at
the same time, we kept the
portfolio's quality very
high.
On the equity side, for years, we have had a pronounced value-oriented fund;
this value philosophy has served our long-term investors well over the years.
However, in recent months, we concluded it was sensible to carefully begin
purchasing a few more growth names. Rather than an "absolute value"
orientation, we now have a more blended approach. Consequently, we increased
our exposure to some technology names--not the go-go, dot.com companies with no
earnings, but solid growth stocks such as Microsoft (0.8% of the portfolio's
assets). With a 29% equity weighting in technology, we are still underweighted
compared to the S&P 500 Stock Index/1/ (35% tech weighting), but we have a much
larger commitment to the tech sector than we did six months ago.*
Average Annual Total Return
As of 3/31/00
Inception Since
Class Date 6 Month++ 1 Year 5 Year Inception
A Shares* 7/1/93 (3.61)% (2.70)% 11.07% 9.39%
B Shares** 1/2/96/2/ (4.29)% (2.77)% 11.19% 9.57%
Trust Shares 7/1/93 0.98% 2.11% 12.35% 10.37%
* Reflects 4.50% maximum sales charge
** Reflects the applicable maximum contingent deferred sales charge.
++ Aggregate Total Return
We also bought into a number of attractively priced stocks in the financial
sector, such as Federal National Mortgage Association, or Fannie Mae (2.9%),
American Express (0.3%) and American International Group (0.4%). Finally, we
beefed up our exposure to health care by opening positions in Johnson & Johnson
(0.9%) and Pfizer (0.1%), and added to our already large position in Merck
(1.0%).*
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/1/The S&P 500 Stock Index is an unmanaged index generally considered to be
representative of the performance of the stock market as a whole. Investors
cannot invest directly in an index, although they can invest in its
underlying securities.
/2/Class B Shares were not in existence prior to 1/1/96. Performance calculated
for any period up to and through 1/1/96 is based upon the historical
performance of the Class A Shares and is adjusted for CDSC, but does not
include any 12b-1 fees, which if reflected, performance would have been
lower.
* The composition of the Fund's holdings is subject to change.
Some of the fees of the BB&T Funds are currently being waived, resulting in
higher total returns than would occur if the full fees were charged.
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.
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The BB&T Capital Manager Funds/1/,/2/
Conservative Growth Fund
Moderate Growth Fund
Growth Fund
The three BB&T Capital Manager Funds--Conservative Growth Fund, Moderate Growth
Fund and Growth Fund--invest in underlying portfolios from the BB&T family. The
Capital Manager Funds seek varying degrees of capital appreciation and income,
based on each Fund's specific and separate asset allocation mix. Our investment
discipline leads us to buy shares of specific sectors when they are relatively
cheap, and sell when they are relatively expensive. We believe that, in the
end, this asset allocation strategy helps us reduce volatility for our
shareholders, while providing competitive returns.
The BB&T Capital Manager
Growth Fund
Average Annual Total Return
As of 3/31/00
Inception Since
Class Date 6 Month++ 1 Year Inception
A Shares* 1/2/98 10.02% 13.10% 9.75%
B Shares** 1/29/99 9.89% 14.10% 11.07%
Trust Shares 10/2/97 15.36% 18.85% 11.99%
The BB&T Capital Manager
Moderate Growth Fund
Average Annual Total Return
As of 3/31/00
Inception Since
Class Date 6 Month++ 1 Year Inception
A Shares* 1/29/98 6.70% 9.27% 8.09%
B Shares** 1/29/99 6.22% 9.64% 7.37%
Trust Shares 10/2/97 11.85% 14.54% 10.28%
The BB&T Capital Manager
Conservative Growth Fund
Average Annual Total Return
As of 3/31/00
Inception Since
Class Date 6 Month++ 1 Year Inception
A Shares* 1/29/98 2.48% 4.17% 5.72%
B Shares** 1/29/99 2.03% 4.55% 3.13%
Trust Shares 10/2/97 7.51% 9.32% 8.03%
* Reflects 4.50% maximum sales charge
** Reflects the applicable maximum contingent deferred sales charge.
++ Aggregate Total Return
We were very pleased that the Capital Manager Funds, individually and as a
group, fulfilled their risk/rewards objectives during the last six months. This
was an unusually volatile period, with the prices of both stocks and bonds
fluctuating wildly. In such an unpredictable investment climate, shareholders
look to the Capital Manager Funds to deliver performance that is commensurate
to their risk profiles. All three Funds achieved their objectives; the
"riskiest" of the three portfolios, the Growth Fund, posted the greatest total
return, while the Moderate Growth Fund and Conservative Growth Fund had the
second- and third-highest returns, respectively.
Part of the value we bring to the Capital Manager Funds is our active
management, based on our assessment of changing market conditions. For the
first four months of the period, we enjoyed terrific performance from several
of the underlying portfolios, most notably the BB&T Small Company Growth Fund,
Large Company Growth Fund and International Equity Fund. Consequently, the
Capital Manager portfolios had become overweighted in the asset classes
represented by these particular funds.
Accordingly, we rebalanced the portfolios' allocations back to their respective
targets in February. We sold a fairly significant number of shares in the
underlying funds whose values had climbed so quickly and bought shares in
portfolios that had been lagging the market: the BB&T bond funds, and the
Growth and Income Stock Fund. This decision was soon vindicated; we did not
overexpose the Funds to highly volatile sectors which took such a terrible hit
in March therefore, we were able to preserve capital much better than many
other funds.
With extreme volatility currently raging in the stock market, we are
comfortable with having each Fund's equity allocation set slightly below
target. As of March 31, 2000, each Fund's equity exposure was as follows:
. BB&T Conservative Growth Fund: 36% equity exposure (40% target)
. BB&T Moderate Growth Fund: 56% equity exposure (60% target)
. BB&T Growth Fund: 71% equity exposure (75% target)
--------------------------------------------------------------------------------
/1/The Capital Manager Funds may contain small-capitalization funds which
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 Capital Manager Funds may contain International stocks which can involve
increased risk and volatility.
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.
-10-
[LOGO OF BB&T FUNDS]
<PAGE>
The BB&T North Carolina Intermediate Tax-Free Fund/1/,/2/
In an effort to slow down the surging economy, the Fed continued to raise
short-term interest rates throughout the period. However, five consecutive rate
hikes--three of which occurred during the last six months--failed to do the
job. However, we did see a dramatic shift in the shape of the yield curve on
both the Treasury and municipal sides of the bond market. The Treasury curve
became completely inverted from two to 30 years, while the municipal curve
flattened significantly.
In the type of "inverted" yield curve experienced by the taxable bond market,
short-term rates yield more than long-term rates, which is not a usual
happenstance. In the past, such a sharply inverted yield curve often has
preceded an economic slowdown, or even a recession. While the municipal yield
curve did not invert, it did flatten; 10- to 30-year muni bond yields remained
virtually unchanged during the period, while five-year yields rose 25 basis
points (0.25%), and two-year yields jumped 40 basis points (0.40%).
As a result, the "safest" place to be invested was in longer-term bonds, which
experienced less price volatility.
The Fed is Starting to Make an Impact
Although the economy and the
markets shrugged off the
Fed's actions throughout much
of the period, we believe we
are now seeing some signs of
a slowdown in the housing
sector; this trend could
spread throughout the economy
as 2000 progresses.
The Fed traditionally takes
steps in order to be pre-
emptive, to head off
inflation before it becomes a
serious problem. Mr.
Greenspan's willingness to
extend the string of rate
hikes now has given us the
confidence to extend the
portfolio's average maturity
and duration--in anticipation
of lower interest rates in
the future.
Average Annual Total Return
As of 3/31/00
Inception Since
Class Date 6 Month++ 1 Year 5 Year Inception
A Shares* 10/16/92 (0.22)% (2.36)% 3.56% 3.51%
Trust Shares 10/16/92 1.88% (0.32)% 4.13% 3.92%
* Reflects 2.00% maximum sales charge
++ Aggregate Total Return
In recent months, we have restructured the Fund to be more responsive in a
bullish, falling-interest-rate environment. We also have replaced callable
bonds with noncallable issues and improved the portfolio's quality.
In general, this region of the country is experiencing faster-than-average
growth, lower unemployment and strong population growth. These trends appear to
be well established, and in no danger of changing in the near future. The
region's economic prosperity is evident in the quality of the state's credit
rating.
As of March 31, 2000, 100% of the Fund's bond holdings were debt instruments
issued by government entities in the state of North Carolina. Approximately
70.9% was invested in general obligation bonds, 20.4% in revenue bonds, 7.7% in
certificates of participation and 1% in cash. The effective maturity of our
portfolio was 8.55 years, the effective duration was 6.16 and the average
credit quality was AA1.*
--------------------------------------------------------------------------------
/1/The Fund's income may be subject to certain state and local taxes and,
depending on one's tax status, to the federal alternative minimum tax.
/2/Regional investing may incur additional risks since investments are limited
to one geographical area.
* The composition of the Fund's holdings is subject to change.
Some of the fees of the BB&T Funds are currently being waived, resulting in
higher total returns than would occur if the full fees were charged.
Past performance is not predictive of future results. Investment return and the
principal value of shares in the BB&T Funds will fluctuate, so shares, when
redeemed, may be worth more or less than their original cost.
-11-
[LOGO OF BB&T FUNDS]
<PAGE>
The BB&T South Carolina Intermediate Tax-Free Fund/1/,/2/
In an effort to slow down the surging economy, the Fed continued to raise
short-term interest rates throughout the period. However, five consecutive rate
hikes--three of which occurred during the last six months--failed to do the
job. However, we did see a dramatic shift in the shape of the yield curve on
both the Treasury and municipal sides of the bond market. The Treasury curve
became completely inverted from two to 30 years, while the municipal curve
flattened significantly.
In the type of "inverted" yield curve experienced by the taxable bond market,
short-term rates yield more than long-term rates, which is not a usual
happenstance. In the past, such a sharply inverted yield curve often has
preceded an economic slowdown, or even a recession. While the municipal yield
curve did not invert, it did flatten; 10- to 30-year muni bond yields remained
virtually unchanged during the period, while five-year yields rose 25 basis
points (0.25%), and two-year yields jumped 40 basis points (0.40%).
As a result, the "safest" place to be invested was in longer-term bonds, which
experienced less price volatility.
The Fed is Starting to Make an Impact
Although the economy and the
markets shrugged off the Fed's
actions throughout much of the
period, we believe we are now
seeing some signs of a slowdown
in the housing sector; this
trend could spread throughout
the economy as 2000 progresses.
The Fed traditionally takes
steps in order to be pre-
emptive, to head off inflation
before it becomes a serious
problem. Mr. Greenspan's
willingness to extend the
string of rate hikes now has
given us the confidence to
extend the portfolio's average
maturity and duration--in
anticipation of lower interest
rates in the future.
Average Annual Total Return
As of 3/31/00
Inception Since
Class Date 6 Month++ 1 Year Inception
A Shares* 10/20/97 (0.59)% (3.08)% 2.04%
Trust Shares 10/19/97 1.51% (0.97)% 3.00%
* Reflects 2.00% maximum sales charge
++ Aggregate Total Return
In recent months, we have restructured the Fund to be more responsive in a
bullish, falling-interest-rate environment. We also have replaced callable
bonds with noncallable issues and improved the portfolio's quality.
In general, this region of the country is experiencing faster-than-average
growth, lower unemployment and strong population growth. These trends appear to
be well established, and in no danger of changing in the near future. The
region's economic prosperity is evident in the quality of the state's credit
rating.
As of March 31, 2000, 100% of the Fund's bond holdings were debt instruments
issued by government entities in the state of South Carolina. Approximately
57.4% was invested in general obligation bonds, 41.6% in revenue bonds and 1%
in cash. The effective maturity of our portfolio was 7.94 years, the effective
duration was 6.11 and the average credit quality was AA1.*
--------------------------------------------------------------------------------
/1/The Fund's income may be subject to certain state and local taxes and,
depending on one's tax status, to the federal alternative minimum tax.
/2/Regional investing may incur additional risks since investments are limited
to one geographical area.
* The composition of the Fund's holdings is subject to change.
Some of the fees of the BB&T Funds are currently being waived, resulting in
higher total returns than would occur if the full fees were charged.
Past performance is not predictive of future results. Investment return and the
principal value of shares in the BB&T Funds will fluctuate, so shares, when
redeemed, may be worth more or less than their original cost.
-12-
[LOGO OF BB&T FUNDS]
<PAGE>
The BB&T Virginia Intermediate Tax-Free Fund/1/,/2/
In an effort to slow down the surging economy, the Fed continued to raise
short-term interest rates throughout the period. However, five consecutive rate
hikes--three of which occurred during the last six months--failed to do the
job. However, we did see a dramatic shift in the shape of the yield curve on
both the Treasury and municipal sides of the bond market. The Treasury curve
became completely inverted from two to 30 years, while the municipal curve
flattened significantly.
In the type of "inverted" yield curve experienced by the taxable bond market,
short-term rates yield more than long-term rates, which is not a usual
happenstance. In the past, such a sharply inverted yield curve often has
preceded an economic slowdown, or even a recession. While the municipal yield
curve did not invert, it did flatten; 10- to 30-year muni bond yields remained
virtually unchanged during the period, while five-year yields rose 25 basis
points (0.25%), and two-year yields jumped 40 basis points (0.40%).
Therefore, we believe, the "safest" place to invest was in longer-term bonds,
which experienced less price volatility.
The Fed is starting to Make an Impact
Although the economy and the
markets shrugged off the Fed's
actions throughout much of the
period, we believe we are now
seeing some signs of a slowdown
in the housing sector; this
trend could spread throughout
the economy as 2000 progresses.
The Fed traditionally takes
steps in order to be pre-
emptive, to head off inflation
before it becomes a serious
problem. Mr. Greenspan's
willingness to extend the string
of rate hikes now has given us
the confidence to extend the
portfolio's average maturity and
duration--in anticipation of
lower interest rates in the
future.
Average Annual Total Return
As of 3/31/00
Inception Since
Class Date 6 Month Inception
A Shares* 5/17/99 (0.19)% (0.88)%
Trust Shares 5/17/99 1.90% 0.10%
* Reflects 2.00% maximum sales charge
In recent months, we have restructured the Fund to be more responsive in a
bullish, falling-interest-rate environment. We also have replaced callable
bonds with noncallable issues and improved the portfolio's quality.
In general, this region of the country is experiencing faster-than-average
growth, lower unemployment and strong population growth. These trends appear to
be well established, and in no danger of changing in the near future. The
region's economic prosperity is evident in the quality of the state's credit
rating.
As of March 31, 2000, 99% of the Fund's bond holdings were debt instruments
issued by government entities in Virginia, with 1% in District of Columbia
paper (the latter subject to Virginia state taxes). Approximately 51.3% was
invested in general obligation bonds, 48.4% in revenue bonds and 0.3% in cash.
The effective maturity of our portfolio was 8.80 years, the effective duration
was 6.35 and the average credit quality was AA1.*
--------------------------------------------------------------------------------
/1/The Fund's income may be subject to certain state and local taxes and,
depending on one's tax status, to the federal alternative minimum tax.
/2/Regional investing may incur additional risks since investments are limited
to one geographical area.
* The composition of the Fund's holdings is subject to change.
Some of the fees of the BB&T Funds are currently being waived, resulting in
higher total returns than would occur if the full fees were charged.
Past performance is not predictive of future results. Investment return and the
principal value of shares in the BB&T Funds will fluctuate, so shares, when
redeemed, may be worth more or less than their original cost.
-13-
[LOGO OF BB&T FUNDS]
<PAGE>
The BB&T Intermediate U.S. Government Bond Fund
The BB&T Short-Intermediate U.S. Government Income Fund
The last six months delivered an unusual degree of volatility to fixed-income
investors. During the last calendar quarter of 1999, U.S. Treasury yields rose
steadily (peaking in early 2000), as the economy expanded and the threat of
inflation grew. Meanwhile, the Fed continued its policy of tightening credit in
an effort to stave off inflation. By March, the Fed had raised the fed funds
rate--the rate banks charge one another for overnight loans--five consecutive
times, with only limited effect.
In the first calendar quarter of 2000, the interest-rate environment became
even more interesting. Yields on intermediate- and long-term Treasuries fell
sharply (and prices rose accordingly, as yields and bond prices move in
opposite directions), at least partly in response to the U.S. Treasury's
program to buy back bonds. As a result, the taxable bond yield curve fully
inverted between two and 30 years. (In an "inverted" yield curve, which is an
unusual occurrence, short-term securities yield more than long-term issues.)
Dislocation and Discomfort rile the Market
The BB&T Intermediate
U.S. Government Bond Fund
Average Annual Total Return
As of 3/31/00
Inception Since
Class Date 6 Month++ 1 Year 5 Year Inception
A Shares* 10/9/92 (2.93)% (3.65)% 5.17% 4.78%
B Shares** 1/2/96/1/ (3.64)% (3.62)% 5.16% 4.89%
Trust Shares 10/9/92 1.80% 1.12% 6.42% 5.69%
* 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 3/31/00
Inception Since
Class Date 6 Month++ 1 Year 5 Year Inception
A Shares*** 11/30/92 (0.81)% (0.13)% 4.78% 4.50%
Trust Shares 11/30/92 1.48% 2.16% 5.49% 5.03%
*** Reflects 2.00% maximum sales charge
As a group, many fixed-income investors seek relative stability and a
meaningful degree of security about their investments. With interest rates
soaring and plunging, sometimes at the same time (at different ends of the
yield curve), investors have been forced to forego this comfort level, at least
temporarily. Consequently, the spreads (premiums in yields) for corporate,
agency and mortgage-backed securities, relative to Treasuries of like
maturities, have grown wider than during any recent crises.
--------------------------------------------------------------------------------
/1/Class B Shares were not in existence prior to 1/1/96. Performance calculated
for any period up to and through 1/1/96 is based upon the historical
performance of Class A Shares and is adjusted for CDSC, but does not include
any 12b-1 fees, which if reflected, performance would have been lower.
Some of the fees of the BB&T Funds are currently being waived, resulting in
higher total returns than would occur if the full fees were charged.
Past performance is not predictive of future results. Investment return and the
principal value of shares in the BB&T Funds will fluctuate, so shares, when
redeemed, may be worth more or less than their original cost.
-14-
[LOGO OF BB&T FUNDS]
<PAGE>
But with this uncertainty in the market, we have found some attractive
opportunities. We believe agency debt and high quality corporate paper, in
particular, offer good value at this juncture. Nonetheless, we are wary of
certain technical issues that could continue to roil the market for some time.
As of March 31, 2000, the effective maturity of the Intermediate U.S.
Government Bond Fund was 9.4 years, up from 6.3 years at the end of September
1999. This increase was mostly a result of buying long-dated, U.S. Treasury
securities, to participate in the flattening of the yield curve. Approximately
32% of the portfolio was invested in securities issued by the U.S. Treasury,
16% in corporate debt, 38% in mortgage-backed securities, 13% in U.S.
government agency securities and 1% in cash and cash equivalents. The
portfolio's duration was 5.9 and the average credit quality was AAA.*
As of March 31, 2000, the effective maturity of the Short-Intermediate U.S.
Government Income Fund was 2.9 years, the same as it was in September 1999. We
did not increase the fund's maturity, as rates in the short-term sector are
highly sensitive to increases in the overnight lending rate, which the Fed has
been pushing upward. Approximately 25% of the portfolio was invested in
securities issued by the U.S. Treasury, 27% in mortgage-backed securities, 11%
in corporate debt, 37% in U.S. government agency securities and 0% in cash and
cash equivalents. The portfolio's duration was 2.5 and th average credit
quality of the portfolio was AAA. In the future, we will be measuring the
interest-rate sensitivity of our fixed-income funds by "duration," rather than
average maturity. An accurate measure of bonds' price risk, duration will
enable us to more effectively manage our fixed-income portfolios for our
shareholders.*
--------------------------------------------------------------------------------
* The composition of the Funds' holdings is subject to change
-15-
[LOGO OF BB&T FUNDS]
<PAGE>
The BB&T Intermediate Corporate Bond Fund
The Fund opened to investors on December 1, 1999, in the midst of an
exceptionally volatile period for corporate debt securities.
From early December 1999 through mid-January 2000, corporate spreads (the
premium paid for corporate securities above Treasury securities of like
maturities) tightened, as investors sought higher yields. At the end of
January, this trend reversed sharply, and spreads widened out to levels usually
reserved for times of economic crisis.
Dislocation and Discomfort Rile the Markets
Beginning in mid-January, yields
on intermediate- and long-term
Treasuries fell sharply (and
prices rose accordingly, as
yields and bond prices move in
opposite directions), at least
partly in response to the U.S.
Treasury's program to buy back
bonds. As a result, the yield
curve fully inverted between two
and 30 years. (In an "inverted"
yield curve, which is an unusual
occurrence, short-term
securities yield more than long-
term issues.)
While we did have investments in
long-dated Treasuries to
participate in the curve
flattening, the majority of our
assets are corporate securities.
Average Annual Total Return
As of 3/31/00
Inception Since
Class Date Inception
A Shares* 11/30/99 (3.91)%
B Shares** 11/30/99 (4.48)%
Trust Shares 11/30/99 0.64%
* Reflects 4.50% maximum sales charge
** Reflects the applicable maximum contingent deferred sales charge
Going forward, our outlook for the corporate market is one of cautious
optimism, in that we see current valuations as attractive, given the
fundamental outlook for corporate profitability. However, near-term technical
issues--such as the shape of the Treasury securities curve, wider swap spreads
and the risk of shareholder-friendly corporate restructuring--temper our
enthusiasm. Given that our economic outlook points to a Fed-induced slowing of
economic activity, we would look to any near-term improvement in the trading of
corporate securities as an opportunity to improve the overall credit quality of
corporate holdings, and reduce exposure to more economically sensitive paper.
As of March 31, 2000, the Fund's effective maturity was 9.7 years and duration
was 5.9. In the future, we will be measuring the interest-rate sensitivity of
our fixed-income funds by "duration," rather than average maturity. An accurate
measure of bonds' price risk, duration will enable us to more effectively
manage our fixed-income portfolios for our shareholders. Approximately 78% of
the portfolio was invested in corporate obligations, 13% in U.S. Treasury
securities, 7% in agency debt and 2% in cash and cash equivalents. The Fund's
average credit quality was AA3, with none of the issues we hold currently rated
below investment grade.*
--------------------------------------------------------------------------------
* The composition of the Funds' holdings is subject to change
Some of the fees of the BB&T Funds are currently being waived, resulting in
higher total returns than would occur if the full fees were charged.
Past performance is not predictive of future results. Investment return and the
principal value of shares in the BB&T Funds will fluctuate, so shares, when
redeemed, may be worth more or less than their original cost.
-16-
[LOGO OF BB&T FUNDS]
<PAGE>
The BB&T Prime Money Market Fund+
The BB&T U.S. Treasury Money Market Fund+
Continuing its effort to stem off impending inflation, the Fed raised the fed
funds rate--the short-term rate banks charge one another for overnight loans--
three times during the most recent, six-month period. The fed funds rate, which
started the period at 5.25%, now stands at 6.00%, with future rate hikes likely
this year. Fortunately, while this action caused problems for many bondholders
invested in short-term securities and put pressure on stocks, the Funds
welcomed higher rates, as they gradually translated into rising yields for our
shareholders. Along with stability and safety, our main concern is generating
high current income. With inflation remaining low by historical standards,
shareholders received generous "real returns" (total return minus inflation).
In the rising rate environment that existed during the period, the BB&T Prime
Money Market Fund took a defensive posture, and shortened the portfolio's
average weighted maturity significantly. Our mandate is to be conservative,
while generating competitive yields, and to this end, we kept the Fund's
maturity structure "laddered"--with much of our investments in one-month
securities, less in two-month paper and so on.
The BB&T U.S. Treasury Money Market Fund continued to buy paper further out on
the yield curve, to pick up incremental yield. Our positions in repurchase
agreements particularly benefited from the three increases in the fed funds
rate.
As of March 31, 2000, approximately 68.1% of the Prime Money Market Fund's
portfolio was invested in commercial paper, 20.9% in variable rate notes, and
11.0% in U.S. agency paper. The average maturity of the Fund's holdings was 30
days, and the average credit quality was A1+.*
As of March 31, 2000, approximately 46% of the U.S. Treasury Money Market
Fund's portfolio was invested in repurchase agreements and 54% in U.S. Treasury
securities. The average maturity of the Fund's holdings was 57 days, and the
average credit quality was AAA.*
--------------------------------------------------------------------------------
+ An investment in the Fund is not insured nor guaranteed by the FDIC or any
other governmental 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.
Shares in the Funds involve investment risks, including possible loss of
principal, so that an investor's shares, when redeemed, may be worth more or
less than their original cost. Fund shares are not deposits or obligations of,
or guaranteed or endorsed by, Branch Banking and Trust Company or its
affiliates, nor are they insured by the FDIC or any other agency.
Some of the fees of the BB&T Funds are currently being waived, resulting in
higher total returns than would occur if the full fees were charged.
-17-
[LOGO OF BB&T FUNDS]
<PAGE>
Statements of Assets and Liabilities
March 31, 2000
(Unaudited)
<TABLE>
<CAPTION>
Short-
Prime U.S. Treasury Intermediate Intermediate U.S.
Money Market Money Market U.S. Government Government Bond
Fund Fund Income Fund Fund
------------ ------------- --------------- -----------------
<S> <C> <C> <C> <C>
ASSETS:
Investments, at value
(Cost $89,021,334;
$196,484,819;
$222,242,180;
$217,616,239)........... $89,021,334 $196,484,819 $219,035,597 $215,443,808
Repurchase agreements,
at cost................. -- 227,965,427 11,000,000 6,000,000
----------- ------------ ------------ ------------
Total investments.... 89,021,334 424,450,246 230,035,597 221,443,808
----------- ------------ ------------ ------------
Cash.................... 1,061 -- -- --
Interest and dividends
receivable.............. 182,787 1,943,997 2,447,335 1,828,610
Prepaid expenses and
other................... 1,349 5,734 3,110 3,535
----------- ------------ ------------ ------------
Total Assets......... 89,206,531 426,399,977 232,486,042 223,275,953
----------- ------------ ------------ ------------
LIABILITIES:
Dividends payable....... 361,711 1,590,184 886,209 877,661
Payable for capital
shares redeemed......... -- 33,995 -- --
Payable for collateral
received on loaned
securities.............. -- 60,348,750 43,533,750 41,730,000
Accrued expenses and
other payables:
Investment advisory
fees................... 20,688 94,095 80,404 76,286
Administration fees.... 1,796 9,916 3,856 4,903
Distribution fees...... 15,316 19,473 922 2,609
Other.................. 19,522 38,906 13,462 43,064
----------- ------------ ------------ ------------
Total Liabilities.... 419,033 62,135,319 44,518,603 42,734,523
----------- ------------ ------------ ------------
NET ASSETS:
Capital................. 88,783,229 364,264,412 194,155,919 186,991,269
Undistributed net
investment income....... 4,810 246 159,851 213,443
Distributions in excess
of net realized gains on
investment
transactions............ (541) -- (3,141,748) (4,490,851)
Net unrealized
depreciation on
investments............. -- -- (3,206,583) (2,172,431)
----------- ------------ ------------ ------------
Net Assets........... $88,787,498 $364,264,658 $187,967,439 $180,541,430
=========== ============ ============ ============
</TABLE>
Continued
-18-
[LOGO OF BB&T FUNDS]
<PAGE>
Statements of Assets and Liabilities, Continued
March 31, 2000
(Unaudited)
<TABLE>
<CAPTION>
Short-
Prime U.S. Treasury Intermediate Intermediate U.S.
Money Market Money Market U.S. Government Government Bond
Fund Fund Income Fund Fund
------------ ------------- --------------- -----------------
<S> <C> <C> <C> <C>
Net Assets
Class A................ $10,915,188 $ 45,440,055 $ 4,338,076 $ 3,191,918
Class B................ 17,788,702 8,143,294 -- 2,293,961
Trust Class............ 60,083,608 310,681,309 183,629,363 175,055,551
----------- ------------ ------------ ------------
Total................ $88,787,498 $364,264,658 $187,967,439 $180,541,430
=========== ============ ============ ============
Outstanding units of
beneficial interest
(shares)
Class A................ 10,914,925 45,440,117 455,624 333,361
Class B................ 17,788,598 8,143,291 -- 240,214
Trust Class............ 60,084,516 310,681,096 19,275,024 18,254,840
----------- ------------ ------------ ------------
Total................ 88,788,039 364,264,504 19,730,648 18,828,415
=========== ============ ============ ============
Net asset value
Class A--redemption
price per share........ $ 1.00 $ 1.00 $ 9.52 $ 9.57
Class B--offering
price per share*....... $ 1.00 $ 1.00 -- $ 9.55
Trust Class--offering
and redemption price
per share.............. $ 1.00 $ 1.00 $ 9.53 $ 9.59
=========== ============ ============ ============
Maximum Sales Charge--
Class A................. N/A N/A 2.00% 4.50%
=========== ============ ============ ============
Maximum Offering Price
(100%/(100%-Maximum
Sales Charge) of net
asset value adjusted to
the nearest cent) per
share--Class A.......... $ 1.00 $ 1.00 $ 9.71 $ 10.02
=========== ============ ============ ============
</TABLE>
----
* Redemption price per share (Class B) varies by length of time shares are
held. (See note 1)
See notes to financial statements
-19-
[LOGO OF BB&T FUNDS]
<PAGE>
Statements of Assets and Liabilities
March 31, 2000
(Unaudited)
<TABLE>
<CAPTION>
Intermediate North Carolina South Carolina Virginia
Corporate Intermediate Intermediate Intermediate
Bond Fund Tax-Free Fund Tax-Free Fund Tax-Free Fund
------------ -------------- -------------- -------------
<S> <C> <C> <C> <C>
ASSETS:
Investments, at value
(Cost $72,024,711;
$87,303,267;
$16,833,162;
$78,313,279)............ $72,026,736 $87,568,056 $16,736,323 $77,882,947
Interest and dividends
receivable.............. 1,175,587 1,237,048 234,977 1,093,468
Receivable for
investments sold........ -- 248,712 751,315 3,942,310
Receivable for expense
reimbursement........... -- -- 1,128 --
Prepaid expenses and
other................... 834 2,018 602 1,748
----------- ----------- ----------- -----------
Total Assets......... 73,203,157 89,055,834 17,724,345 82,920,473
----------- ----------- ----------- -----------
LIABILITIES:
Dividends payable....... 375,716 307,311 59,134 296,534
Payable for capital
shares redeemed......... -- 406,231 -- --
Payable for investments
purchased............... 494,100 1,738,755 766,350 3,883,495
Accrued expenses and
other payables:
Investment advisory
fees................... 14,721 36,018 319 33,354
Administration fees.... 488 1,768 4,010 1,614
Distribution fees...... 62 1,501 144 16
Other.................. 63,814 788 13,039 29,883
----------- ----------- ----------- -----------
Total Liabilities.... 948,901 2,492,372 842,996 4,244,896
----------- ----------- ----------- -----------
NET ASSETS:
Capital................. 72,828,193 87,331,575 17,327,084 79,745,322
Undistributed net
investment income....... -- 31,686 1,008 2,700
Distributions in excess
of net realized gains on
investment
transactions............ (575,962) (1,064,588) (349,904) (642,113)
Net unrealized
appreciation
(depreciation) on
investments............. 2,025 264,789 (96,839) (430,332)
----------- ----------- ----------- -----------
Net Assets........... $72,254,256 $86,563,462 $16,881,349 $78,675,577
=========== =========== =========== ===========
</TABLE>
Continued
-20-
[LOGO OF BB&T FUNDS]
<PAGE>
Statements of Assets and Liabilities, Continued
March 31, 2000
(Unaudited)
<TABLE>
<CAPTION>
Intermediate North Carolina South Carolina Virginia
Corporate Intermediate Intermediate Intermediate
Bond Fund Tax-Free Fund Tax-Free Fund Tax-Free Fund
------------ -------------- -------------- -------------
<S> <C> <C> <C> <C>
Net Assets
Class A................ $ 188,617 $11,510,786 $ 1,120,925 $ 126,435
Class B................ 40,673 -- -- --
Trust Class............ 72,024,966 75,052,676 15,760,424 78,549,142
----------- ----------- ----------- -----------
Total................ $72,254,256 $86,563,462 $16,881,349 $78,675,577
=========== =========== =========== ===========
Outstanding units of
beneficial interest
(shares)
Class A................ 19,123 1,167,140 114,944 11,674
Class B................ 4,125 -- -- --
Trust Class............ 7,306,639 7,608,596 1,625,897 7,253,773
----------- ----------- ----------- -----------
Total................ 7,329,887 8,775,736 1,740,841 7,265,447
=========== =========== =========== ===========
Net asset value
Class A--redemption
price per share........ $ 9.86 $ 9.86 $ 9.75 $ 10.83
Class B--offering
price per share*....... $ 9.86 -- -- --
Trust Class--offering
and redemption price
per share.............. $ 9.86 $ 9.86 $ 9.69 $ 10.83
=========== =========== =========== ===========
Maximum Sales Charge--
Class A................. 4.50% 2.00% 2.00% 2.00%
=========== =========== =========== ===========
Maximum Offering Price
(100%/(100%-Maximum
Sales Charge) of net
asset value adjusted to
the nearest cent) per
share--Class A.......... $ 10.32 $ 10.06 $ 9.95 $ 11.05
=========== =========== =========== ===========
</TABLE>
----
* Redemption price per share (Class B) varies by length of time shares are
held. (See note 1)
See notes to financial statements
-21-
[LOGO OF BB&T FUNDS]
<PAGE>
Statements of Assets and Liabilities
March 31, 2000
(Unaudited)
<TABLE>
<CAPTION>
Growth and Large Company Small Company
Income Stock Balanced Growth Growth
Fund Fund Fund Fund
------------ ------------ ------------- -------------
<S> <C> <C> <C> <C>
ASSETS:
Investments, at value
(Cost $435,016,671;
$140,446,629;
$117,857,499;
$163,203,219)........... $526,032,238 $155,636,843 $187,178,697 $244,167,001
Repurchase agreements,
at cost................. 22,000,000 6,000,000 -- --
------------ ------------ ------------ ------------
Total investments.... 548,032,238 161,636,843 187,178,697 244,167,001
------------ ------------ ------------ ------------
Cash.................... -- -- -- 48,071
Interest and dividends
receivable.............. 686,429 1,002,328 112,891 65
Receivable for capital
shares issued........... -- -- 11,192 --
Receivable for
investments sold........ 162,757 -- 1,367,080 2,902,759
Variation margin
receivable on futures
contracts............... -- -- -- 137,500
Prepaid expenses and
other................... 13,381 4,346 2,688 6,832
------------ ------------ ------------ ------------
Total Assets......... 548,894,805 162,643,517 188,672,548 247,262,228
------------ ------------ ------------ ------------
LIABILITIES:
Dividends payable....... 839,966 339,018 -- --
Payable for capital
shares redeemed......... 246,187 952,156 305,804 --
Payable for investments
purchased............... -- -- 2,651,775 953,021
Payable for collateral
received on loaned
securities.............. 123,701,700 13,168,750 15,913,100 5,265,000
Accrued expenses and
other payables:
Investment advisory
fees................... 203,645 73,945 84,315 239,058
Administration fees.... 11,435 4,069 4,725 7,072
Distribution fees...... 36,130 20,437 21,851 26,406
Other.................. -- -- 11,223 --
------------ ------------ ------------ ------------
Total Liabilities.... 125,039,063 14,558,375 18,992,793 6,490,557
------------ ------------ ------------ ------------
NET ASSETS:
Capital................. 307,932,925 132,260,592 90,855,967 113,623,550
Distributions in excess
of net investment
income.................. -- -- (240,621) (766,396)
Accumulated
undistributed net
realized gains on
futures
transactions and
investments............ 24,907,250 634,336 9,743,211 45,941,985
Net unrealized
appreciation on futures
transactions and
investments............. 91,015,567 15,190,214 69,321,198 81,972,532
------------ ------------ ------------ ------------
Net Assets........... $423,855,742 $148,085,142 $169,679,755 $240,771,671
============ ============ ============ ============
</TABLE>
Continued
-22-
[LOGO OF BB&T FUNDS]
<PAGE>
Statements of Assets and Liabilities, Continued
March 31, 2000
(Unaudited)
<TABLE>
<CAPTION>
Growth and Large Company Small Company
Income Balanced Growth Growth
Stock Fund Fund Fund Fund
------------ ------------ ------------- -------------
<S> <C> <C> <C> <C>
Net Assets
Class A................ $ 34,771,228 $ 19,135,099 $ 11,515,338 $ 20,180,685
Class B................ 36,203,631 19,622,998 23,703,899 21,420,126
Trust Class............ 352,880,883 109,327,045 134,460,518 199,170,860
------------ ------------ ------------ ------------
Total................ $423,855,742 $148,085,142 $169,679,755 $240,771,671
============ ============ ============ ============
Outstanding units of
beneficial interest
(shares)
Class A................ 1,915,826 1,450,170 727,950 510,021
Class B................ 2,005,530 1,496,353 1,522,282 560,886
Trust Class............ 19,409,280 8,308,053 8,459,697 4,953,524
------------ ------------ ------------ ------------
Total................ 23,330,636 11,254,576 10,709,929 6,024,431
============ ============ ============ ============
Net asset value
Class A--redemption
price per share........ $ 18.15 $ 13.20 $ 15.82 $ 39.57
Class B--offering
price per share*....... $ 18.05 $ 13.11 $ 15.57 $ 38.19
Trust Class--offering
and redemption price
per share.............. $ 18.18 $ 13.16 $ 15.89 $ 40.21
============ ============ ============ ============
Maximum Sales Charge--
Class A................. 4.50% 4.50% 4.50% 4.50%
============ ============ ============ ============
Maximum Offering Price
(100%/(100%-Maximum
Sales Charge) of net
asset value adjusted to
the nearest cent) per
share--Class A.......... $ 19.01 $ 13.82 $ 16.57 $ 41.43
============ ============ ============ ============
</TABLE>
----
* Redemption price per share (Class B) varies by length of time shares are
held. (See note 1)
See notes to financial statements
-23-
[LOGO OF BB&T FUNDS]
<PAGE>
Statements of Assets and Liabilities
March 31, 2000
(Unaudited)
<TABLE>
<CAPTION>
International Capital Manager Capital Manager Capital
Equity Conservative Moderate Manager
Fund Growth Fund Growth Fund Growth Fund
------------- --------------- --------------- -----------
<S> <C> <C> <C> <C>
ASSETS:
Investments, at value
(Cost $104,520,393;
$31,823,618;
$29,154,159;
$27,104,880)............ $126,717,706 $32,318,685 $30,819,080 $29,561,854
Cash.................... 585,670 -- -- --
Interest and dividends
receivable.............. 191,340 110,177 82,621 62,706
Receivable for
investments sold........ 722,056 -- -- --
Reclaim receivable...... 107,036 -- -- --
Foreign currency, at
value (Cost
$2,565,387)............. 2,572,793 -- -- --
Prepaid expenses and
other................... 2,572 1,260 1,280 1,109
------------ ----------- ----------- -----------
Total Assets......... 130,899,173 32,430,122 30,902,981 29,625,669
------------ ----------- ----------- -----------
LIABILITIES:
Dividends payable....... -- 282,149 207,124 141,199
Payable for investments
purchased............... 1,344,587 -- -- --
Accrued expenses and
other payables:
Investment advisory
fees................... 110,671 1,356 1,302 1,244
Administration fees.... 3,607 221 212 203
Distribution fees...... 3,680 171 634 1,204
Other.................. 14,085 4,224 3,339 3,990
------------ ----------- ----------- -----------
Total Liabilities.... 1,476,630 288,121 212,611 147,840
------------ ----------- ----------- -----------
NET ASSETS:
Capital................. 97,513,934 30,229,824 27,169,804 25,021,616
Distributions in excess
of net investment
income.................. (423,598) (6,894) (6,895) (6,893)
Accumulated
undistributed net
realized gains on
foreign currency
transactions and
investments............. 10,152,907 1,424,004 1,862,540 2,006,132
Net unrealized
appreciation on foreign
currency transactions
and investments......... 22,179,300 495,067 1,664,921 2,456,974
------------ ----------- ----------- -----------
Net Assets........... $129,422,543 $32,142,001 $30,690,370 $29,477,829
============ =========== =========== ===========
</TABLE>
Continued
-24-
[LOGO OF BB&T FUNDS]
<PAGE>
Statements of Assets and Liabilities, Continued
March 31, 2000
(Unaudited)
<TABLE>
<CAPTION>
International Capital Manager Capital Manager Capital
Equity Conservative Moderate Manager
Fund Growth Fund Growth Fund Growth Fund
------------- --------------- --------------- -----------
<S> <C> <C> <C> <C>
Net Assets
Class A................ $ 2,897,741 $ 287,244 $ 1,454,008 $ 1,351,021
Class B................ 3,711,127 131,985 380,545 1,093,135
Trust Class............ 122,813,675 31,722,772 28,855,817 27,033,673
------------ ----------- ----------- -----------
Total................ $129,422,543 $32,142,001 $30,690,370 $29,477,829
============ =========== =========== ===========
Outstanding units of
beneficial interest
(shares)
Class A................ 200,237 26,787 127,212 113,409
Class B................ 260,608 12,303 33,391 91,837
Trust Class............ 8,417,241 2,945,840 2,524,477 2,269,239
------------ ----------- ----------- -----------
Total................ 8,878,086 2,984,930 2,685,080 2,474,485
============ =========== =========== ===========
Net asset value
Class A--redemption
price per share........ $ 14.47 $ 10.72 $ 11.43 $ 11.91
Class B--offering
price per share*....... $ 14.24 $ 10.73 $ 11.40 $ 11.90
Trust Class--offering
and redemption price
per share.............. $ 14.59 $ 10.77 $ 11.43 $ 11.91
============ =========== =========== ===========
Maximum Sales Charge--
Class A................. 4.50% 4.50% 4.50% 4.50%
============ =========== =========== ===========
Maximum Offering Price
(100%/(100% - Maximum
Sales Charge) of net
asset value adjusted to
the nearest cent) per
share--Class A.......... $ 15.15 $ 11.23 $ 11.97 $ 12.47
============ =========== =========== ===========
</TABLE>
----
* Redemption price per share (Class B) varies by length of time shares are
held. (See note 1)
See notes to financial statements
-25-
[LOGO OF BB&T FUNDS]
<PAGE>
Statements of Operations
For the Period Ended March 31, 2000
(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
------------ ------------- --------------- -----------------
<S> <C> <C> <C> <C>
INVESTMENT INCOME:
Interest income.......... $2,158,313 $9,560,101 $ 5,601,004 $ 6,173,379
Dividend income.......... -- -- 85,192 78,919
Income from securities
lending.................. -- 11,305 34,088 30,483
---------- ---------- ----------- -----------
Total Income.......... 2,158,313 9,571,406 5,720,284 6,282,781
---------- ---------- ----------- -----------
EXPENSES:
Investment advisory
fees..................... 147,659 708,581 553,406 584,452
Administration fees...... 73,830 354,291 184,470 194,819
Distribution fees--Class
A........................ 15,740 120,631 11,161 8,192
Distribution fees--Class
B........................ 54,585 18,359 -- 12,386
Accounting fees.......... 25,677 63,211 34,443 43,499
Transfer agent fees...... 42,781 75,774 25,123 63,033
Trustees' fees and
expenses................. 2,196 8,802 4,173 4,715
Other.................... 25,940 78,395 27,104 32,064
---------- ---------- ----------- -----------
Gross Expenses........ 388,408 1,428,044 839,880 943,160
Expenses waived....... (86,451) (231,821) (143,930) (101,504)
---------- ---------- ----------- -----------
Total Expenses........ 301,957 1,196,223 695,950 841,656
---------- ---------- ----------- -----------
Net Investment Income.... 1,856,356 8,375,183 5,024,334 5,441,125
---------- ---------- ----------- -----------
REALIZED/UNREALIZED GAINS
(LOSSES) ON INVESTMENTS:
Net realized gains
(losses) on investment
transactions............. 350 -- (1,933,096) (4,360,487)
Net change in unrealized
appreciation/depreciation
on investments........... -- -- (523,232) 2,241,110
---------- ---------- ----------- -----------
Net realized/unrealized
gains (losses) on
investments.............. 350 -- (2,456,328) (2,119,377)
---------- ---------- ----------- -----------
Change in net assets
resulting from
operations............... $1,856,706 $8,375,183 $ 2,568,006 $ 3,321,748
========== ========== =========== ===========
</TABLE>
See notes to financial statements
-26-
[LOGO OF BB&T FUNDS]
<PAGE>
Statements of Operations
For the Period Ended March 31, 2000
(Unaudited)
<TABLE>
<CAPTION>
Intermediate North Carolina South Carolina Virginia
Corporate Bond Intermediate Intermediate Intermediate
Fund (a) Tax-Free Fund Tax-Free Fund Tax-Free Fund
-------------- -------------- -------------- -------------
<S> <C> <C> <C> <C>
INVESTMENT INCOME:
Interest income.......... $1,216,838 $2,142,437 $402,334 $1,988,373
Dividend income.......... 85,104 25,891 8,119 28,638
---------- ---------- -------- ----------
Total Income.......... 1,301,942 2,168,328 410,453 2,017,011
---------- ---------- -------- ----------
EXPENSES:
Investment advisory
fees..................... 110,566 254,924 50,515 234,984
Administration fees...... 36,856 84,975 16,838 78,328
Distribution fees--Class
A........................ 135 32,025 2,892 216
Distribution fees--Class
B........................ 37 -- -- --
Custodian fees........... 4,978 3,947 3,965 5,715
Accounting fees.......... 20,152 16,841 11,796 20,651
Transfer agent fees...... 11,602 21,551 20,472 6,401
Trustees' fees and
expenses................. 634 2,117 506 1,525
Other.................... 57,735 8,539 4,631 31,912
---------- ---------- -------- ----------
Gross Expenses........ 242,695 424,919 111,615 379,732
Expenses waived....... (109,058) (86,148) (39,927) (58,896)
---------- ---------- -------- ----------
Total Expenses........ 133,637 338,771 71,688 320,836
---------- ---------- -------- ----------
Net Investment Income.... 1,168,305 1,829,557 338,765 1,696,175
---------- ---------- -------- ----------
REALIZED/UNREALIZED GAINS
(LOSSES) ON INVESTMENTS:
Net realized losses on
investment transactions.. (575,962) (886,983) (316,950) (451,067)
Net change in unrealized
appreciation/depreciation
on investments........... 2,025 681,656 225,999 244,798
---------- ---------- -------- ----------
Net realized/unrealized
losses on investments.... (573,937) (205,327) (90,951) (206,269)
---------- ---------- -------- ----------
Change in net assets
resulting from
operations............... $ 594,368 $1,624,230 $247,814 $1,489,906
========== ========== ======== ==========
</TABLE>
----
(a)For the period from December 2, 1999 (commencement of operations) through
March 31, 2000.
See notes to financial statements
-27-
[LOGO OF BB&T FUNDS]
<PAGE>
Statements of Operations
For the Period Ended March 31, 2000
(Unaudited)
<TABLE>
<CAPTION>
Growth and Large Company Small Company
Income Balanced Growth Growth
Stock Fund Fund Fund Fund
------------ ----------- ------------- -------------
<S> <C> <C> <C> <C>
INVESTMENT INCOME:
Interest income.......... $ 122,242 $ 2,039,178 $ -- $ 626,628
Dividend income.......... 5,230,424 926,763 515,592 12,288
Income from securities
lending.................. 143,501 21,817 3,142 40,611
------------ ----------- ----------- ------------
Total Income.......... 5,496,167 2,987,758 518,734 679,527
------------ ----------- ----------- ------------
EXPENSES:
Investment advisory
fees..................... 1,580,790 574,582 507,205 987,435
Administration fees...... 427,242 155,293 137,083 197,488
Distribution fees--Class
A........................ 90,889 51,373 21,038 48,354
Distribution fees--Class
B........................ 183,534 103,719 88,210 85,125
Custodian fees........... 6,509 8,963 4,575 12,810
Accounting fees.......... 75,435 34,599 32,075 42,722
Transfer agent fees...... 143,955 76,037 85,376 71,735
Trustees' fees and
expenses................. 11,773 4,557 2,623 3,380
Other.................... 37,712 12,627 17,335 20,251
------------ ----------- ----------- ------------
Gross Expenses........ 2,557,839 1,021,750 895,520 1,469,300
Expenses waived....... (492,727) (188,209) (149,296) (24,177)
------------ ----------- ----------- ------------
Total Expenses........ 2,065,112 833,541 746,224 1,445,123
------------ ----------- ----------- ------------
Net Investment Income
(Loss)................... 3,431,055 2,154,217 (227,490) (765,596)
------------ ----------- ----------- ------------
REALIZED/UNREALIZED GAINS
(LOSSES) ON INVESTMENTS:
Net realized gains on
futures transactions and
investments.............. 25,028,295 1,263,571 10,674,159 51,528,714
Net change in unrealized
appreciation/depreciation
on futures transactions
and investments.......... (22,745,066) (2,232,203) 33,925,941 48,670,878
------------ ----------- ----------- ------------
Net realized/unrealized
gains (losses) on
investments.............. 2,283,229 (968,632) 44,600,100 100,199,592
------------ ----------- ----------- ------------
Change in net assets
resulting from
operations............... $ 5,714,284 $ 1,185,585 $44,372,610 $ 99,433,996
============ =========== =========== ============
</TABLE>
See notes to financial statements
-28-
[LOGO OF BB&T FUNDS]
<PAGE>
Statements of Operations
For the Period Ended March 31, 2000
(Unaudited)
<TABLE>
<CAPTION>
International Capital Manager Capital Manager
Equity Conservative Moderate Capital Manager
Fund Growth Fund Growth Fund Growth Fund
------------- --------------- --------------- ---------------
<S> <C> <C> <C> <C>
INVESTMENT INCOME:
Interest income.......... $ 115,093 $ -- $ -- $ --
Dividend income.......... 549,943 -- -- --
Foreign tax withholding
......................... (62,649) -- -- --
Dividend income from af-
filiates................. -- 704,972 536,987 413,350
----------- ---------- ---------- ----------
Total Income.......... 602,387 704,972 536,987 413,350
----------- ---------- ---------- ----------
EXPENSES:
Investment advisory
fees..................... 595,803 41,483 37,490 34,221
Administration fees...... 119,161 82,966 74,980 68,442
Distribution fees--Class
A........................ 6,038 1,039 3,629 3,079
Distribution fees--Class
B........................ 14,775 641 1,355 2,632
Custodian fees........... 41,659 4,130 4,087 4,130
Accounting fees.......... 46,955 14,571 14,571 14,571
Transfer agent fees...... 48,202 23,895 24,262 25,314
Trustees' fees and ex-
penses................... 2,472 732 610 610
Other.................... 10,649 3,854 1,856 946
----------- ---------- ---------- ----------
Gross Expenses........ 885,714 173,311 162,840 153,945
Expenses waived....... (3,019) (108,377) (99,288) (90,515)
----------- ---------- ---------- ----------
Total Expenses........ 882,695 64,934 63,552 63,430
----------- ---------- ---------- ----------
Net Investment Income
(Loss)................... (280,308) 640,038 473,435 349,920
----------- ---------- ---------- ----------
REALIZED/UNREALIZED GAINS
ON INVESTMENTS:
Net realized gains on
foreign currency
transactions and
investments.............. 10,256,022 -- -- --
Net realized gains on in-
vestment transactions
with affiliates.......... -- 521,612 736,738 730,925
Net realized gain distri-
butions from underlying
funds.................... -- 926,418 1,156,656 1,303,844
Net change in unrealized
appreciation/depreciation
on foreign currency
transactions and invest-
ments.................... 11,901,833 315,608 971,937 1,544,507
----------- ---------- ---------- ----------
Net realized/unrealized
gains on investments..... 22,157,855 1,763,638 2,865,331 3,579,276
----------- ---------- ---------- ----------
Change in net assets re-
sulting from operations.. $21,877,547 $2,403,676 $3,338,766 $3,929,196
=========== ========== ========== ==========
</TABLE>
See notes to financial statements
-29-
[LOGO OF BB&T FUNDS]
<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,
2000 1999 2000 1999
------------ ------------- ------------ -------------
(Unaudited) (Unaudited)
<S> <C> <C> <C> <C>
FROM INVESTMENT
ACTIVITIES:
OPERATIONS:
Net investment income.. $ 1,856,356 $ 2,724,242 $ 8,375,183 $ 13,438,125
Net realized gains on
investment
transactions........... 350 3,555 -- --
----------- ------------ ------------ ------------
Change in net assets
resulting from
operations.............. 1,856,706 2,727,797 8,375,183 13,438,125
----------- ------------ ------------ ------------
DISTRIBUTIONS TO CLASS A
SHAREHOLDERS:
From net investment
income................. (140,513) (152,033) (977,550) (1,737,810)
DISTRIBUTIONS TO CLASS B
SHAREHOLDERS:
From net investment
income................. (230,029) (117,652) (70,373) (61,245)
DISTRIBUTIONS TO TRUST
CLASS SHAREHOLDERS:
From net investment
income................. (1,485,814) (2,454,557) (7,327,260) (11,639,070)
----------- ------------ ------------ ------------
Change in net assets
from shareholder
distributions........... (1,856,356) (2,724,242) (8,375,183) (13,438,125)
----------- ------------ ------------ ------------
CAPITAL TRANSACTIONS:
Proceeds from shares
issued................. 110,907,282 172,392,196 478,461,592 587,978,397
Dividends reinvested... 143,575 154,204 2,849,841 4,508,381
Cost of shares
redeemed............... (93,542,009) (142,603,501) (444,136,292) (543,926,357)
----------- ------------ ------------ ------------
Change in net assets
from capital
transactions............ 17,508,848 29,942,899 37,175,141 48,560,421
----------- ------------ ------------ ------------
Change in net assets.... 17,509,198 29,946,454 37,175,141 48,560,421
NET ASSETS:
Beginning of period.... 71,278,300 41,331,846 327,089,517 278,529,096
----------- ------------ ------------ ------------
End of period.......... $88,787,498 $ 71,278,300 $364,264,658 $327,089,517
=========== ============ ============ ============
SHARE TRANSACTIONS:
Issued................. 110,907,282 172,392,196 478,461,592 587,978,397
Reinvested............. 143,575 154,204 2,849,841 4,508,381
Redeemed............... (93,542,009) (142,603,501) (444,136,292) (543,926,357)
----------- ------------ ------------ ------------
Change in shares........ 17,508,848 29,942,899 37,175,141 48,560,421
=========== ============ ============ ============
</TABLE>
See notes to financial statements
-30-
[LOGO OF BB&T FUNDS]
<PAGE>
Statements of Changes in Net Assets
<TABLE>
<CAPTION>
Short-Intermediate Intermediate
U.S. Government U.S. 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,
2000 1999 2000 1999
------------ ------------- ------------ -------------
(Unaudited) (Unaudited)
<S> <C> <C> <C> <C>
FROM INVESTMENT
ACTIVITIES:
OPERATIONS:
Net investment income.... $ 5,024,334 $ 8,728,816 $ 5,441,125 $ 10,358,648
Net realized gains
(losses) on investment
transactions ............ (1,933,096) 506,677 (4,360,487) 2,542,689
Net change in unrealized
appreciation/depreciation
on investments .......... (523,232) (7,407,066) 2,241,110 (17,109,843)
------------ ------------ ------------ ------------
Change in net assets
resulting from
operations................ 2,568,006 1,828,427 3,321,748 (4,208,506)
------------ ------------ ------------ ------------
DISTRIBUTIONS TO CLASS A
SHAREHOLDERS:
From net investment
income................... (115,905) (227,380) (87,901) (189,135)
From net realized gains
from investment
transactions............. -- -- (11,035) (45,700)
DISTRIBUTIONS TO CLASS B
SHAREHOLDERS:
From net investment
income................... -- -- (57,025) (83,767)
From net realized gains
from investment
transactions............. -- -- (8,692) (15,100)
DISTRIBUTIONS TO TRUST
CLASS SHAREHOLDERS:
From net investment
income................... (4,908,429) (8,601,436) (5,296,199) (10,085,746)
From net realized gains
from investment
transactions............. -- -- (647,393) (1,898,850)
------------ ------------ ------------ ------------
Change in net assets from
shareholder
distributions............. (5,024,334) (8,828,816) (6,108,245) (12,318,298)
------------ ------------ ------------ ------------
CAPITAL TRANSACTIONS:
Proceeds from shares
issued................... 44,113,835 53,751,017 37,476,264 93,711,669
Dividends reinvested..... 265,463 559,768 1,522,139 3,341,950
Cost of shares redeemed.. (25,867,203) (37,203,799) (75,074,780) (53,254,932)
------------ ------------ ------------ ------------
Change in net assets from
capital transactions...... 18,512,095 17,106,986 (36,076,377) 43,798,687
------------ ------------ ------------ ------------
Change in net assets...... 16,055,767 10,106,597 (38,862,874) 27,271,883
NET ASSETS:
Beginning of period...... 171,911,672 161,805,075 219,404,304 192,132,421
------------ ------------ ------------ ------------
End of period............ $187,967,439 $171,911,672 $180,541,430 $219,404,304
============ ============ ============ ============
SHARE TRANSACTIONS:
Issued................... 4,604,430 5,472,276 3,921,783 9,371,863
Reinvested............... 27,717 56,935 158,739 329,967
Redeemed................. (2,710,022) (3,784,731) (7,828,344) (5,273,293)
------------ ------------ ------------ ------------
Change in shares.......... 1,922,125 1,744,480 (3,747,822) 4,428,537
============ ============ ============ ============
</TABLE>
See notes to financial statements
-31-
[LOGO OF BB&T FUNDS]
<PAGE>
Statements of Changes in Net Assets
<TABLE>
<CAPTION>
Intermediate Corporate North Carolina
Bond Fund Intermediate Tax-Free Fund
---------------------- ---------------------------
For the For the For the
Period ended Period ended Year ended
March 31, March 31, September 30,
2000 (a) 2000 1999
---------------------- ------------ -------------
(Unaudited) (Unaudited)
<S> <C> <C> <C>
FROM INVESTMENT ACTIVITIES:
OPERATIONS:
Net investment income...... $ 1,168,305 $ 1,829,557 $ 3,412,964
Net realized losses on
investment transactions.... (575,962) (886,983) (102,373)
Net change in unrealized
appreciation/depreciation
on investments............. 2,025 681,656 (4,541,542)
----------- ----------- ------------
Change in net assets
resulting from operations... 594,368 1,624,230 (1,230,951)
----------- ----------- ------------
DISTRIBUTIONS TO CLASS A
SHAREHOLDERS:
From net investment
income..................... (1,674) (267,301) (532,706)
From net realized gains
from investment
transactions............... -- (650) (60,954)
In excess of net realized
gains from investment
transactions............... -- -- (24,537)
DISTRIBUTIONS TO CLASS B
SHAREHOLDERS:
From net investment income
........................... (208) -- --
DISTRIBUTIONS TO TRUST CLASS
SHAREHOLDERS:
From net investment
income..................... (1,166,423) (1,562,256) (2,880,258)
From net realized gains
from investment
transactions............... -- (3,505) (361,508)
In excess of net realized
gains from investment
transactions............... -- -- (145,523)
----------- ----------- ------------
Change in net assets from
shareholder distributions... (1,168,305) (1,833,712) (4,005,486)
----------- ----------- ------------
CAPITAL TRANSACTIONS:
Proceeds from shares
issued..................... 74,348,922 11,776,961 26,407,580
Dividends reinvested....... 634,649 233,323 508,644
Cost of shares redeemed.... (2,155,378) (9,344,833) (22,618,365)
----------- ----------- ------------
Change in net assets from
capital transactions........ 72,828,193 2,665,451 4,297,859
----------- ----------- ------------
Change in net assets........ 72,254,256 2,455,969 (938,578)
NET ASSETS:
Beginning of period........ -- 84,107,493 85,046,071
----------- ----------- ------------
End of period.............. $72,254,256 $86,563,462 $ 84,107,493
=========== =========== ============
SHARE TRANSACTIONS:
Issued..................... 7,484,890 1,202,758 2,588,527
Reinvested................. 64,725 23,850 49,458
Redeemed................... (219,728) (956,734) (2,211,670)
----------- ----------- ------------
Change in shares............ 7,329,887 269,874 426,315
=========== =========== ============
</TABLE>
----
(a) For the period from December 2, 1999 (commencement of operations) through
March 31, 2000.
See notes to financial statements
-32-
[LOGO OF BB&T FUNDS]
<PAGE>
Statements of Changes in Net Assets
<TABLE>
<CAPTION>
South Carolina Virginia Intermediate
Intermediate Tax-Free Fund Tax-Free Fund
--------------------------- ---------------------------
For the For the For the For the
Period ended Year ended Period ended Period ended
March 31, September 30, March 31, September 30,
2000 1999 2000 1999 (a)
------------ ------------- ------------ -------------
(Unaudited) (Unaudited)
<S> <C> <C> <C> <C>
FROM INVESTMENT
ACTIVITIES:
OPERATIONS:
Net investment income.... $ 338,765 $ 709,461 $ 1,696,175 $ 1,263,469
Net realized gains
(losses) on investment
transactions............. (316,950) 1,730 (451,067) (191,046)
Net change in unrealized
appreciation/depreciation
on investments........... 225,999 (1,074,450) 244,798 (2,572,782)
----------- ----------- ----------- -----------
Change in net assets
resulting from
operations................ 247,814 (363,259) 1,489,906 (1,500,359)
----------- ----------- ----------- -----------
DISTRIBUTIONS TO CLASS A
SHAREHOLDERS:
From net investment
income................... (22,476) (26,968) (1,824) (469)
From net realized gains
from investment
transactions............. -- (1,845) -- --
In excess of net realized
gains from investment
transactions............. -- (543) -- --
DISTRIBUTIONS TO TRUST
CLASS SHAREHOLDERS:
From net investment
income................... (316,289) (682,493) (1,694,351) (1,263,000)
From net realized gains
from investment
transactions............. -- (110,141) -- --
In excess of net realized
gains from investment
transactions............. -- (32,411) -- --
----------- ----------- ----------- -----------
Change in net assets from
shareholder
distributions............. (338,765) (854,401) (1,696,175) (1,263,469)
----------- ----------- ----------- -----------
CAPITAL TRANSACTIONS:
Proceeds from shares
issued................... 950,899 4,262,509 6,048,712 85,191,871
Dividends reinvested..... 20,424 21,108 1,244 219
Cost of shares redeemed.. (1,454,129) (4,149,815) (6,595,566) (3,000,806)
----------- ----------- ----------- -----------
Change in net assets from
capital transactions ..... (482,806) 133,802 (545,610) 82,191,284
----------- ----------- ----------- -----------
Change in net assets...... (573,757) (1,083,858) (751,879) 79,427,456
NET ASSETS:
Beginning of period...... 17,455,106 18,538,964 79,427,456 --
----------- ----------- ----------- -----------
End of period............ $16,881,349 $17,455,106 $78,675,577 $79,427,456
=========== =========== =========== ===========
SHARE TRANSACTIONS:
Issued................... 98,924 422,672 562,326 7,585,174
Reinvested............... 2,109 2,086 116 20
Redeemed................. (151,217) (414,297) (610,931) (271,258)
----------- ----------- ----------- -----------
Change in shares ......... (50,184) 10,461 (48,489) 7,313,936
=========== =========== =========== ===========
</TABLE>
----
(a) For the period from May 17, 1999 (commencement of operations) through
September 30, 1999.
See notes to financial statements
-33-
[LOGO OF BB&T FUNDS]
<PAGE>
Statements of Changes in Net Assets
<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,
2000 1999 2000 1999
------------ ------------- ------------ -------------
(Unaudited) (Unaudited)
<S> <C> <C> <C> <C>
FROM INVESTMENT ACTIVI-
TIES:
OPERATIONS:
Net investment income.... $ 3,431,055 $ 6,625,392 $ 2,154,217 $ 4,153,838
Net realized gains on
investment transactions.. 25,028,295 37,465,613 1,263,571 9,253,980
Net change in unrealized
appreciation/depreciation
on investments........... (22,745,066) 7,984,149 (2,232,203) (2,071,623)
------------ ------------- ------------ ------------
Change in net assets
resulting from
operations................ 5,714,284 52,075,154 1,185,585 11,336,195
------------ ------------- ------------ ------------
DISTRIBUTIONS TO CLASS A
SHAREHOLDERS:
From net investment
income................... (264,293) (515,715) (278,224) (540,324)
From net realized gains
from investment
transactions............. (3,095,963) (1,704,986) (889,513) (1,111,931)
DISTRIBUTIONS TO CLASS B
SHAREHOLDERS:
From net investment
income................... (134,387) (208,234) (207,628) (342,755)
From net realized gains
from investment
transactions............. (3,107,786) (1,455,060) (912,904) (856,840)
DISTRIBUTIONS TO TRUST
CLASS SHAREHOLDERS:
From net investment
income................... (3,032,375) (5,901,443) (1,693,027) (3,286,351)
From net realized gains
from investment
transactions............. (30,471,495) (15,578,825) (5,067,849) (5,781,527)
------------ ------------- ------------ ------------
Change in net assets from
shareholder
distributions............. (40,106,299) (25,364,263) (9,049,145) (11,919,728)
------------ ------------- ------------ ------------
CAPITAL TRANSACTIONS:
Proceeds from shares
issued................... 48,231,210 107,370,335 12,064,915 33,795,452
Dividends reinvested..... 19,595,989 12,926,508 7,321,504 9,175,126
Cost of shares redeemed.. (66,094,643) (111,377,616) (26,533,236) (25,364,362)
------------ ------------- ------------ ------------
Change in net assets from
capital transactions...... 1,732,556 8,919,227 (7,146,817) 17,606,216
------------ ------------- ------------ ------------
Change in net assets...... (32,659,459) 35,630,118 (15,010,377) 17,022,683
NET ASSETS:
Beginning of period...... 456,515,201 420,885,083 163,095,519 146,072,836
------------ ------------- ------------ ------------
End of period............ $423,855,742 $ 456,515,201 $148,085,142 $163,095,519
============ ============= ============ ============
SHARE TRANSACTIONS:
Issued................... 2,675,419 5,279,265 908,735 2,354,356
Reinvested............... 1,056,657 634,868 545,615 640,132
Redeemed................. (3,663,090) (5,391,287) (2,020,326) (1,762,439)
------------ ------------- ------------ ------------
Change in shares.......... 68,986 522,846 (565,976) 1,232,049
============ ============= ============ ============
</TABLE>
See notes to financial statements
-34-
[LOGO OF BB&T FUNDS]
<PAGE>
Statements of Changes in Net Assets
<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,
2000 1999 2000 1999
------------ ------------- ------------- -------------
(Unaudited) (Unaudited)
<S> <C> <C> <C> <C>
FROM INVESTMENT ACTIVI-
TIES:
OPERATIONS:
Net investment loss...... $ (227,490) $ (162,867) $ (765,596) $ (1,196,306)
Net realized gains on
futures transactions and
investments.............. 10,674,159 6,107,190 51,528,714 12,616,268
Net change in unrealized
appreciation/depreciation
on futures transactions
and investments.......... 33,925,941 12,965,625 48,670,878 28,117,911
------------ ------------ ------------- -------------
Change in net assets
resulting from
operations................ 44,372,610 18,909,948 99,433,996 39,537,873
------------ ------------ ------------- -------------
DISTRIBUTIONS TO CLASS A
SHAREHOLDERS:
From net realized gains
from investment
transactions............. (386,187) (124,106) (1,678,289) --
DISTRIBUTIONS TO CLASS B
SHAREHOLDERS:
From net realized gains
from investment
transactions............. (835,887) (279,203) (1,383,064) --
DISTRIBUTIONS TO TRUST
CLASS SHAREHOLDERS:
From net realized gains
from investment
transactions............. (5,750,383) (3,203,980) (12,786,728) --
In excess of net
investment income........ -- (24,125) -- --
------------ ------------ ------------- -------------
Change in net assets from
shareholder
distributions............. (6,972,457) (3,631,414) (15,848,081) --
------------ ------------ ------------- -------------
CAPITAL TRANSACTIONS:
Proceeds from shares
issued................... 36,251,551 53,970,032 165,399,683 111,811,018
Dividends reinvested..... 1,234,808 460,407 10,248,791 --
Cost of shares redeemed.. (14,042,473) (17,771,061) (146,578,246) (106,478,404)
------------ ------------ ------------- -------------
Change in net assets from
capital transactions...... 23,443,886 36,659,378 29,070,228 5,332,614
------------ ------------ ------------- -------------
Change in net assets...... 60,844,039 51,937,912 112,656,143 44,870,487
NET ASSETS:
Beginning of period...... 108,835,716 56,897,804 128,115,528 83,245,041
------------ ------------ ------------- -------------
End of period............ $169,679,755 $108,835,716 $ 240,771,671 $ 128,115,528
============ ============ ============= =============
SHARE TRANSACTIONS:
Issued................... 2,501,885 4,658,383 4,646,236 5,271,001
Reinvested............... 91,792 43,579 349,883 --
Redeemed................. (976,525) (1,519,232) (4,070,627) (4,899,093)
------------ ------------ ------------- -------------
Change in shares.......... 1,617,152 3,182,730 925,492 371,908
============ ============ ============= =============
</TABLE>
See notes to financial statements
-35-
[LOGO OF BB&T FUNDS]
<PAGE>
Statements of Changes in Net Assets
<TABLE>
<CAPTION>
Capital Manager
International Conservative
Equity 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,
2000 1999 2000 1999 (a)
------------ ------------- ------------ -------------
(Unaudited) (Unaudited)
<S> <C> <C> <C> <C>
FROM INVESTMENT ACTIVI-
TIES:
OPERATIONS:
Net investment income
(loss)................... $ (280,308) $ 139,281 $ 640,038 $ 983,283
Net realized gains on
foreign currency
transactions and
investments.............. 10,256,022 4,835,636 -- --
Net realized gains on
investment transactions
with affiliates.......... -- -- 521,612 217,601
Net realized gain
distributions from
underlying funds......... -- -- 926,418 565,771
Net change in unrealized
appreciation/depreciation
on foreign currency
transactions and
investments.............. 11,901,833 16,606,815 315,608 383,969
------------ ------------ ----------- -----------
Change in net assets
resulting from
operations................ 21,877,547 21,581,732 2,403,676 2,150,624
------------ ------------ ----------- -----------
DISTRIBUTIONS TO CLASS A
SHAREHOLDERS:
From net investment
income................... -- (4,037) (7,863) (12,382)
From net realized gains
from investment
transactions............. (104,842) (22,804) (10,851) (2,027)
In excess of net
investment income........ -- -- -- (24)
DISTRIBUTIONS TO CLASS B
SHAREHOLDERS:
From net investment
income................... -- (2,136) (1,963) (1,510)
From net realized gains
from investment
transactions............. (122,221) (34,567) (2,673) --
In excess of net
investment income........ -- -- -- (3)
DISTRIBUTIONS TO TRUST
CLASS SHAREHOLDERS:
From net investment
income................... -- (273,843) (635,102) (1,008,395)
From net realized gains
from investment
transactions............. (4,989,752) (1,288,928) (722,850) (400,054)
In excess of net
investment income........ -- -- -- (1,977)
------------ ------------ ----------- -----------
Change in net assets from
shareholder
distributions............. (5,216,815) (1,626,315) (1,381,302) (1,426,372)
------------ ------------ ----------- -----------
CAPITAL TRANSACTIONS:
Proceeds from shares
issued................... 25,955,218 26,053,178 1,904,095 10,867,721
Dividends reinvested..... 1,543,932 481,380 398,386 128,560
Cost of shares redeemed.. (16,468,139) (18,352,844) (4,415,086) (2,380,373)
------------ ------------ ----------- -----------
Change in net assets from
capital transactions...... 11,031,011 8,181,714 (2,112,605) 8,615,908
------------ ------------ ----------- -----------
Change in net assets...... 27,691,743 28,137,131 (1,090,231) 9,340,160
NET ASSETS:
Beginning of period...... 101,730,800 73,593,669 33,232,232 23,892,072
------------ ------------ ----------- -----------
End of period............ $129,422,543 $101,730,800 $32,142,001 $33,232,232
============ ============ =========== ===========
SHARE TRANSACTIONS:
Issued................... 1,864,186 2,194,713 179,180 1,027,813
Reinvested............... 112,935 44,009 37,589 12,124
Redeemed................. (1,201,074) (1,534,370) (416,786) (224,173)
------------ ------------ ----------- -----------
Change in shares.......... 776,047 704,352 (200,017) 815,764
============ ============ =========== ===========
</TABLE>
----
(a) The Fund commenced offering Class B shares on January 29, 1999.
See notes to financial statements
-36-
[LOGO OF BB&T FUNDS]
<PAGE>
Statements of Changes in Net Assets
<TABLE>
<CAPTION>
Capital Manager
Moderate Capital Manager
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,
2000 1999 (a) 2000 1999 (a)
------------ ------------- ------------ -------------
(Unaudited) (Unaudited)
<S> <C> <C> <C> <C>
FROM INVESTMENT
ACTIVITIES:
OPERATIONS:
Net investment income.... $ 473,435 $ 563,592 $ 349,920 $ 350,476
Net realized gains on
investment transactions
with affiliates.......... 736,738 183,576 730,925 227,172
Net realized gain
distributions from
underlying funds......... 1,156,656 648,294 1,303,844 687,358
Net change in unrealized
appreciation/depreciation
on investments........... 971,937 1,635,682 1,544,507 2,383,183
----------- ----------- ----------- -----------
Change in net assets
resulting from
operations................ 3,338,766 3,031,144 3,929,196 3,648,189
----------- ----------- ----------- -----------
DISTRIBUTIONS TO CLASS A
SHAREHOLDERS:
From net investment
income................... (19,766) (34,980) (14,734) (12,677)
From net realized gains
from investment
transactions............. (30,245) (36,656) (37,901) (15,042)
In excess of net
investment income........ -- (111) -- (58)
DISTRIBUTIONS TO CLASS B
SHAREHOLDERS:
From net investment
income................... (3,759) (1,852) (6,274) (535)
From net realized gains
from investment
transactions............. (5,681) -- (10,483) --
In excess of net
investment income........ -- (6) -- (2)
DISTRIBUTIONS TO TRUST
CLASS SHAREHOLDERS:
From net investment
income................... (454,801) (595,561) (333,803) (425,057)
From net realized gains
from investment
transactions............. (742,081) (540,033) (812,804) (705,524)
In excess of net
investment income........ -- (1,887) -- (1,942)
----------- ----------- ----------- -----------
Change in net assets from
shareholder
distributions............. (1,256,333) (1,211,086) (1,215,999) (1,160,837)
----------- ----------- ----------- -----------
CAPITAL TRANSACTIONS:
Proceeds from shares
issued................... 2,354,397 4,433,451 1,688,391 1,436,202
Dividends reinvested..... 210,670 82,152 82,806 31,021
Cost of shares redeemed.. (2,588,727) (531,734) (223,269) (384,265)
----------- ----------- ----------- -----------
Change in net assets from
capital transactions ..... (23,660) 3,983,869 1,547,928 1,082,958
----------- ----------- ----------- -----------
Change in net assets...... 2,058,773 5,803,927 4,261,125 3,570,310
NET ASSETS:
Beginning of period...... 28,631,597 22,827,670 25,216,704 21,646,394
----------- ----------- ----------- -----------
End of period............ $30,690,370 $28,631,597 $29,477,829 $25,216,704
=========== =========== =========== ===========
SHARE TRANSACTIONS:
Issued................... 213,790 412,779 148,583 133,028
Reinvested............... 19,059 7,780 7,306 2,941
Redeemed................. (235,239) (49,525) (19,341) (35,342)
----------- ----------- ----------- -----------
Change in shares ......... (2,390) 371,034 136,548 100,627
=========== =========== =========== ===========
</TABLE>
----
(a) The Fund commenced offering Class B shares on January 29, 1999.
See notes to financial statements
-37-
[LOGO OF BB&T FUNDS]
<PAGE>
PRIME MONEY MARKET FUND
Schedule of Portfolio Investments
March 31, 2000
(Unaudited)
<TABLE>
<CAPTION>
Principal Security Amortized
Amount Description Cost
--------- ----------------------------------------------------- -----------
<C> <S> <C>
Commercial Paper (64.2%):
Banks (8.4%):
$ 3,000,000 Abbey National,
5.85%, 4/18/00....................................... $ 2,991,712
3,000,000 Aegon Funding Corp.,
5.89%, 5/3/00........................................ 2,984,293
1,500,000 Banque Nationale De Paris,
6.05%, 5/24/00....................................... 1,486,640
-----------
7,462,645
-----------
Brokerage (3.3%):
3,000,000 Bear Stearns Co., Inc.,
6.02%, 6/16/00....................................... 2,961,873
-----------
Financial Services (25.7%):
3,608,000 Barton Capital Corp.,
6.12%, 5/15/00....................................... 3,581,013
3,434,000 Falcon Asset Securitization Corp.,
6.18%, 4/14/00....................................... 3,426,336
3,000,000 General Electric Capital Corp.,
5.83%, 4/11/00....................................... 2,995,142
1,330,000 Grand Funding Corp.,
6.10%, 5/18/00....................................... 1,319,408
2,500,000 Grand Funding Corp.,
6.08%, 5/04/00....................................... 2,486,067
3,000,000 Paccar Financial Corp.,
5.80%, 4/25/00....................................... 2,988,400
3,000,000 St. Michael Finance Ltd.,
5.85%, 4/17/00....................................... 2,992,200
3,000,000 Windmill Funding,
5.86%, 4/3/00........................................ 2,999,023
-----------
22,787,589
-----------
Food & Related (2.8%):
2,530,000 Heinz Co.,
6.05%, 5/18/00....................................... 2,510,017
-----------
Insurance (6.7%):
3,000,000 American General Corp.,
5.80%, 4/4/00........................................ 2,998,550
3,000,000 Marsh USA, Inc.,
5.90%, 5/15/00....................................... 2,978,367
-----------
5,976,917
-----------
Manufacturing--Consumer Goods (4.5%):
4,000,000 Kimberly-Clark Corp.,
6.05%, 5/15/00....................................... 3,969,750
-----------
</TABLE>
<TABLE>
<CAPTION>
Principal Security Amortized
Amount Description Cost
--------- ----------------------------------------------------- -----------
<C> <S> <C>
Commercial Paper, continued:
Petroleum (4.5%):
$ 4,000,000 Koch Industries,
6.24%, 4/3/00........................................ $ 3,998,613
-----------
Real Estate (3.8%):
3,389,000 HD Real Estate Funding Corp.,
5.93%, 5/23/00....................................... 3,359,971
-----------
Utilities--Telephone (4.5%):
4,000,000 British Telecommunication,
6.13%, 5/9/00........................................ 3,974,118
-----------
Total Commercial Paper 57,001,493
-----------
Corporate Bonds (3.4%):
Banks (3.4%):
3,000,000 Goldman Sachs Group, Inc.,
6.20%, 7/7/00........................................ 3,000,000
-----------
Total Corporate Bonds 3,000,000
-----------
U.S. Government Agencies (11.2%):
Federal Home Loan Mortgage Corp. (6.7%):
5,982,000 0.00%, 4/3/00**...................................... 5,979,990
-----------
Federal National Mortgage Assoc. (4.5%):
4,000,000 0.00%, 4/17/00**..................................... 3,989,653
-----------
Total U.S. Government Agencies 9,969,643
-----------
Variable Rate Notes (21.5%):
Banks (11.3%):
1,050,000 Bank One Corp.,
6.32%*, 3/23/01...................................... 1,051,153
3,000,000 First Union Corp.,
5.93%*, 3/1/01....................................... 3,000,000
3,000,000 Key Bank,
5.42%*, 6/15/00...................................... 2,999,642
3,000,000 SMM Trust 1999,
5.32%*, 4/5/00....................................... 2,999,999
-----------
10,050,794
-----------
Petroleum (3.4%):
3,000,000 Texaco Capital, Inc.,
5.19%*, 5/3/00....................................... 2,999,742
-----------
Telecommunications (3.4%):
3,000,000 AT&T Corp.,
5.27%*, 7/13/00...................................... 2,999,662
-----------
</TABLE>
Continued
-38-
[LOGO OF BB&T FUNDS]
<PAGE>
PRIME MONEY MARKET FUND
Schedule of Portfolio Investments, Continued
March 31, 2000
(Unaudited)
<TABLE>
<CAPTION>
Principal Security Amortized
Amount Description Cost
--------- ---------------------------------------------------- -----------
<C> <S> <C>
Variable Rate Notes, continued:
Utilities--Telephone (3.4%):
$ 3,000,000 National Rural Utilities,
5.99%*, 1/24/01..................................... $ 3,000,000
-----------
Total Variable Rate Notes 19,050,198
-----------
Total Investments
(Amortized Cost $89,021,334) (a)--100.3% 89,021,334
Liabilities in excess of other assets--(0.3)% (233,836)
-----------
TOTAL NET ASSETS--100.0% $88,787,498
===========
</TABLE>
----
(a) Cost for federal income tax and financial reporting
purposes are the same.
* The rate reflected is the rate in effect at March
31, 2000. The maturity date reflected is the final
maturity date.
** Represents Discount Note.
See notes to financial statements
-39-
[LOGO OF BB&T FUNDS]
<PAGE>
U.S. TREASURY MONEY MARKET FUND
Schedule of Portfolio Investments
March 31, 2000
(Unaudited)
<TABLE>
<CAPTION>
Principal Security Amortized
Amount Description Cost
--------- -------------------------------------------------- ------------
<C> <S> <C>
U.S. Treasury Bills (16.4%):
$ 60,000,000 4/20/00........................................... $ 59,810,475
------------
Total U.S. Treasury Bills 59,810,475
------------
U.S. Treasury Notes (37.5%):
17,000,000 5.50%, 4/15/00 (b)................................ 17,002,599
17,000,000 6.25%, 5/31/00.................................... 17,022,046
17,000,000 5.38%, 6/30/00 (b)................................ 16,998,217
17,000,000 5.375%, 7/31/00................................... 16,986,572
17,000,000 5.125%, 8/31/00 (b)............................... 16,943,803
17,000,000 4.50%, 9/30/00 (b)................................ 16,874,723
10,000,000 5.75%, 10/31/00................................... 9,972,226
15,000,000 5.63%, 11/30/00................................... 14,938,226
10,000,000 5.50%, 12/31/00................................... 9,935,932
------------
Total U.S. Treasury Notes 136,674,344
------------
Repurchase Agreements (46.1%):
47,616,677 Bank of America
Repurchase Agreement, 6.07%, 4/3/00,
(Collateralized by $34,100,000 U.S. Treasury Bond,
12.50%, 8/15/14, market value--$47,640,763)....... 47,616,677
50,000,000 First Boston
Repurchase Agreement, 5.90%, 4/3/00,
(Collateralized by $51,250,000
U.S. Treasury Notes, 6.50%, 2/28/02, market
value--$51,218,230) .............................. 50,000,000
25,000,000 Lehman Brothers
Repurchase Agreement, 6.02%, 4/3/00,
(Collateralized by $25,440,000
U.S. Treasury Notes, 5.75%, 4/30/03,
market value--$25,012,542)........................ 25,000,000
25,000,000 Merrill Lynch
Repurchase Agreement, 5.60%, 4/3/00,
(Collateralized by $25,595,000
U.S. Treasury Notes, 5.50%, 7/31/01,
market value--$25,011,667) ....................... 25,000,000
</TABLE>
<TABLE>
<CAPTION>
Principal Security Amortized
Amount Description Cost
--------- ------------------------------------------------- ------------
<C> <S> <C>
Repurchase Agreements, continued:
$ 20,000,000 Salomon/Smith Barney
Repurchase Agreement, 5.95%, 4/3/00,
(Collateralized by $15,640,000
U.S. Treasury Bond, 9.25%, 2/15/16,
market value--$20,009,917) ...................... $ 20,000,000
------------
Total Repurchase Agreements 167,616,677
------------
Short Term Securities Purchased with Securities Lending
Collateral (16.5%):
Repurchase Agreement (16.5%):
60,348,750 Swiss Warburg Triparty Agreement, 6.12%, 4/3/00,
(Collateralized by $59,610,000 U.S. Treasury
Bond, 3.875%, 4/15/29, market value--
$60,474,170)..................................... 60,348,750
------------
Total Short Term Securities Purchased with Securities Lending
Collateral .................................................. 60,348,750
------------
Total Investments
(Amortized Cost $424,450,246) (a)--116.5% 424,450,246
Liabilities in excess of other assets--(16.5%) (60,185,588)
------------
TOTAL NET ASSETS--100.0% $364,264,658
============
</TABLE>
----
(a) Cost for federal
income tax and
financial reporting
purposes are the
same.
(b) All or part of this
security has been
loaned at March 31,
2000.
See notes to financial statements
-40-
[LOGO OF BB&T FUNDS]
<PAGE>
SHORT-INTERMEDIATE U.S. GOVERNMENT INCOME FUND
Schedule of Portfolio Investments
March 31, 2000
(Unaudited)
<TABLE>
<CAPTION>
Shares
or
Principal Security Market
Amount Description Value
--------- ----------------------------------------------------- -----------
<C> <S> <C>
Corporate Bonds (10.8%):
Banks (3.1%):
$ 3,000,000 NationsBank Corp.,
6.13%, 7/15/04....................................... $ 2,846,838
3,000,000 SunTrust Banks,
7.38%, 7/1/02........................................ 2,989,158
-----------
5,835,996
-----------
Building/Construction Products (1.5%):
3,000,000 Vulcan Materials Co.,
5.75%, 4/1/04........................................ 2,848,722
-----------
Computers (1.5%):
3,000,000 IBM Corp.,
6.22%, 8/1/27, Putable 8/1/04 @ 100.................. 2,891,847
-----------
Financial Services (4.7%):
3,000,000 Associates Corp. NA,
5.80%, 4/20/04....................................... 2,822,550
3,000,000 Ford Motor Credit,
7.50%, 3/15/05....................................... 2,990,250
3,000,000 Sears Roebuck Acceptance,
6.00%, 3/20/03....................................... 2,874,471
-----------
8,687,271
-----------
Total Corporate Bonds 20,263,836
-----------
Pass-through Mortgage Securities (24.3%):
Federal Home Loan Mortgage Corp. (14.5%):
1,283,976 6.00%, 3/1/11, Pool # E20228......................... 1,214,115
2,853,918 6.50%, 2/1/13, Pool #E00532.......................... 2,748,460
3,910,271 6.50%, 5/1/13, Pool # E00548......................... 3,765,779
5,000,000 6.00%, 8/15/14, Series 2103- TA, CMO................. 4,847,100
5,000,000 6.00%, 11/15/16, Series 2103- PY, CMO................ 4,836,525
5,000,000 6.25%, 1/15/20, Series 1583- G, CMO.................. 4,926,130
5,000,000 6.15%, 3/15/21, Series 2066-PQ, CMO.................. 4,889,950
-----------
27,228,059
-----------
Federal National Mortgage Assoc. (9.8%):
1,202,413 7.50%, 12/1/08, Pool # 190611........................ 1,207,173
1,390,175 6.00%, 3/1/09, Pool # 50986.......................... 1,311,888
1,482,586 6.00%, 4/1/09, Pool # 190759......................... 1,399,095
</TABLE>
<TABLE>
<CAPTION>
Shares
or
Principal Security Market
Amount Description Value
--------- ----------------------------------------------------- -----------
<C> <S> <C>
Pass-through Mortgage Securities, continued:
Federal National Mortgage Assoc., continued:
$ 5,000,000 6.25%, 7/18/13, Pool # 1998-36 PN, CMO............... $ 4,947,749
5,000,000 6.00%, 7/25/19 Series 1999-27 CB, CMO................ 4,817,250
5,000,000 6.13%, 12/18/21,Series 1998-24 QE, CMO............... 4,785,800
-----------
18,468,955
-----------
Total Pass-through Mortgage Securities 45,697,014
U.S. Government Agencies (39.0%):
Federal Home Loan Bank (6.7%):
3,000,000 6.17%, 3/8/01........................................ 2,985,948
10,000,000 5.25%, 4/25/02....................................... 9,680,760
-----------
12,666,708
-----------
Federal Home Loan Mortgage Corp. (16.3%):
21,250,000 6.25%, 10/15/02...................................... 20,862,017
5,000,000 6.25%, 7/15/04....................................... 4,844,795
5,000,000 6.875%, 1/15/05...................................... 4,955,775
-----------
30,662,587
-----------
Federal National Mortgage Assoc. (16.0%):
15,500,000 5.38%, 3/15/02(b).................................... 15,052,562
3,000,000 0.00%, 4/6/00*....................................... 2,998,494
7,250,000 6.625%, 9/15/09...................................... 6,972,216
5,000,000 7.00%, 6/25/21....................................... 4,959,050
-----------
29,982,322
-----------
Total U.S. Government Agencies 73,311,617
-----------
U.S. Treasury Notes (24.3%):
8,000,000 6.75%, 4/30/00(b).................................... 8,007,504
4,000,000 6.00%, 8/15/00(b).................................... 4,000,000
6,000,000 5.63%, 2/28/01(b).................................... 5,958,750
3,000,000 6.50%, 5/31/01(b).................................... 3,000,939
11,000,000 5.88%, 11/30/01(b)................................... 10,886,568
9,000,000 5.875%, 11/15/04(b).................................. 8,836,875
500,000 6.50%, 2/15/10....................................... 517,500
4,500,000 6.50%, 2/28/02....................................... 4,498,596
-----------
Total U.S. Treasury Notes 45,706,732
-----------
</TABLE>
Continued
-41-
[LOGO OF BB&T FUNDS]
<PAGE>
SHORT-INTERMEDIATE U.S. GOVERNMENT INCOME FUND
Schedule of Portfolio Investments, Continued
March 31, 2000
(Unaudited)
<TABLE>
<CAPTION>
Shares
or
Principal Security Market
Amount Description Value
--------- --------------------------------------------------- ------------
<C> <S> <C>
Investment Companies (0.8%):
1,522,648 Federated Government Obligation Fund.............. $ 1,522,648
------------
Total Investment Companies 1,522,648
------------
Short Term Securities Purchased with Securities Lending
Collateral (23.2%):
Investment Companies (14.1%):
26,533,750 AIM Liquid Asset Money Market Fund................. 26,533,750
------------
Repurchase Agreements (5.9%):
11,000,000 Lehman Brothers Triparty Agreement, 6.425%, 4/3/00,
(See Significant Accounting Policies).............. 11,000,000
------------
Variable Rate Notes (3.2%)
6,000,000 General Motors Acceptance Corp., 6.61%**,
11/13/00........................................... 6,000,000
------------
Total Short Term Securities Purchased with Securities Lending
Collateral 43,533,750
------------
Total Investments
(Cost $233,242,180) (a)--122.4% 230,035,597
Liabilities in excess of other assets--(22.4%) (42,068,158)
------------
TOTAL NET ASSETS--100.0% $187,967,439
============
</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
appreciation........... $ 69,955
Unrealized
depreciation........... (3,276,538)
-----------
Net unrealized
depreciation........... $(3,206,583)
===========
</TABLE>
(b) All or part of this security has been loaned at March 31, 2000.
CMO--Collateralized Mortgage Obligation.
* Represents Discount Note.
** The rate reflected is the rate in effect at March 31, 2000. The maturity
date reflected is the final maturity date.
See notes to financial statements
-42-
[LOGO OF BB&T FUNDS]
<PAGE>
INTERMEDIATE U.S. GOVERNMENT BOND FUND
Schedule of Portfolio Investments
March 31, 2000
(Unaudited)
<TABLE>
<CAPTION>
Shares
or
Principal Security Market
Amount Description Value
--------- ---------------------------------------------------- ------------
<C> <S> <C>
Corporate Bonds (15.5%):
Banks (2.8%):
$ 5,000,000 SunTrust Banks,
7.38%, 7/1/02....................................... $ 4,981,930
------------
Beverages (1.1%):
2,000,000 Anheuser Busch Cos.,
7.50%, 3/15/12...................................... 2,007,222
------------
Building/Construction Products (1.6%):
3,000,000 Vulcan Materials Co.,
5.75%, 4/1/04....................................... 2,848,722
------------
Computers (2.1%):
4,000,000 IBM Corp.,
6.22%, 8/1/27, Putable 8/1/04 @ 100................. 3,855,796
------------
Consumer Goods & Services (1.5%):
3,000,000 Kimberly-Clark Corp.,
6.25%, 7/15/18...................................... 2,649,201
------------
Financial Services (6.4%):
3,000,000 Ford Motor Credit,
7.50%, 3/15/05 2,990,250
5,000,000 Morgan Stanley Dean Witter,
6.38%, 8/1/02....................................... 4,889,435
4,000,000 Sears Roebuck Acceptance,
6.00%, 3/20/03...................................... 3,832,628
------------
11,712,313
------------
Total Corporate Bonds 28,055,184
------------
Pass-through Mortgage Securities (38.0%):
Federal Home Loan Mortgage Corp. (16.8%):
2,181,541 6.50%, 4/1/11, Pool # E20235........................ 2,108,520
3,910,271 6.50%, 5/1/13, Pool # E00548........................ 3,765,779
5,000,000 6.00%, 8/15/14, Series 2103- TA, CMO................ 4,847,100
5,000,000 6.00%, 11/15/16, Series 2103- PY, CMO............... 4,836,525
5,000,000 6.25%, 1/15/20, Series 1583- G, CMO................. 4,926,131
5,000,000 7.00%, 8/15/23, Series 1644-I, CMO.................. 4,938,599
5,000,000 6.15%, 3/15/21, Series 2066-PQ, CMO................. 4,889,950
------------
30,312,604
------------
</TABLE>
<TABLE>
<CAPTION>
Shares
or
Principal Security Market
Amount Description Value
--------- ---------------------------------------------------- ------------
<C> <S> <C>
Pass-through Mortgage Securities, continued:
Federal National Mortgage Assoc. (19.8%):
$ 2,856,996 6.00%, 6/1/08, Pool # 124885........................ $ 2,717,871
3,234,752 6.00%, 4/1/13, Pool #251656......................... 3,043,398
4,340,557 6.00%, 11/1/13, Pool #323363........................ 4,083,789
5,000,000 6.00%, 7/25/19 Series 1999-27 CB, CMO............... 4,817,250
5,000,000 6.13%, 12/18/21, Series 1998-24 QE, CMO............. 4,785,800
5,000,000 6.00%, 11/18/22, Series 1998-36 PN, CMO............. 4,756,986
2,193,669 7.00%, 4/1/24, Pool # 250005........................ 2,117,754
4,710,869 6.00%, 1/1/29, Pool # 252211........................ 4,293,309
5,188,194 7.50%, 10/1/29, Pool # 252806....................... 5,103,724
------------
35,719,881
------------
Government National Mortgage Assoc. (1.4%):
2,659,915 7.00%, 8/15/23, Pool # 354627....................... 2,593,630
------------
Total Pass-through Mortgage Securities 68,626,115
------------
U.S. Government Agencies (12.7%):
Federal Home Loan Mortgage Corp. (2.0%):
4,000,000 5.75%, 3/15/09...................................... 3,617,504
------------
Federal National Mortgage Assoc. (10.7%):
20,000,000 6.625%, 9/15/09..................................... 19,233,700
------------
Total U.S. Government Agencies 22,851,204
------------
U.S. Treasury Bonds (23.6%):
22,250,000 7.50%, 11/15/16(b).................................. 25,212,031
2,000,000 6.125%, 11/15/27.................................... 2,018,750
16,500,000 5.50%, 8/15/28(b)................................... 15,298,602
------------
Total U.S. Treasury Bonds 42,529,383
------------
U.S. Treasury Notes (8.2%):
2,750,000 6.63%, 5/15/07...................................... 2,803,281
5,142,900 3.88%, 1/15/09(b)................................... 5,088,257
5,000,000 5.875%, 11/15/04.................................... 4,909,375
2,000,000 6.50%, 2/15/10...................................... 2,070,000
------------
Total U.S. Treasury Notes 14,870,913
------------
</TABLE>
Continued
-43-
[LOGO OF BB&T FUNDS]
<PAGE>
INTERMEDIATE U.S. GOVERNMENT BOND FUND
Schedule of Portfolio Investments, Continued
March 31, 2000
(Unaudited)
<TABLE>
<CAPTION>
Shares
or
Principal Security Market
Amount Description Value
--------- --------------------------------------------------- ------------
<C> <S> <C>
Investment Companies (1.5%):
2,781,009 Federated Government Obligation Fund............... $ 2,781,009
------------
Total Investment Companies 2,781,009
------------
Short Term Securities Purchased with Securities Lending
Collateral (23.1%):
Commercial Paper (5.5%):
10,000,000 Safeway, 6.19%, 4/26/00............................ 9,952,090
------------
Investment Companies (10.4%):
18,777,910 AIM Liquid Asset Money Market Fund................. 18,777,910
------------
Repurchase Agreement (3.3%):
6,000,000 Lehman Brothers Triparty Agreement, 6.425%, 4/3/00,
(See Significant Accounting Policies).............. 6,000,000
------------
Variable Rate Notes (3.9%):
7,000,000 General Motors Acceptance Corp., 6.61%*, 11/13/00.. 7,000,000
------------
Total Short Term Securities Purchased with Securities Lending
Collateral 41,730,000
------------
Total Investments
(Cost $223,616,239) (a)--122.7% 221,443,808
Liabilities in excess of other assets--(22.7%) (40,902,378)
------------
TOTAL NET ASSETS--100.0% $180,541,430
============
</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
appreciation........... $ 1,566,085
Unrealized
depreciation........... (3,738,516)
-----------
Net unrealized
depreciation........... $(2,172,431)
===========
</TABLE>
(b) All or part of this security has been loaned at
March 31, 2000.
CMO--Collateralized Mortgage Obligation.
* The rate reflected is the rate in effect at March 31,
2000. The maturity date reflected is the final
maturity date.
See notes to financial statements
-44-
[LOGO OF BB&T FUNDS]
<PAGE>
INTERMEDIATE CORPORATE BOND FUND
Schedule of Portfolio Investments
March 31, 2000
(Unaudited)
<TABLE>
<CAPTION>
Principal Security Market
Amount Description Value
--------- -------------------------------------------------------- ----------
<C> <S> <C>
Corporate Bonds (77.7%)
Aerospace/Defense (1.2%)
$ 800,000 Honeywell International,
9.20%, 2/15/03.......................................... $ 835,318
----------
Automotive (3.5%)
1,500,000 Daimlerchrysler NA,
7.40%, 1/20/05.......................................... 1,496,300
1,000,000 Hertz Corp.,
7.625%, 8/15/07......................................... 1,001,711
----------
2,498,011
----------
Banks (7.8%)
2,000,000 Bank Of America Corp.,
7.80%, 2/15/10.......................................... 2,015,739
1,250,000 Citigroup, Inc,
5.80%, 3/15/04.......................................... 1,189,145
2,000,000 Mellon Bank,
6.50%, 8/1/05........................................... 1,906,984
500,000 Wells Fargo Co.,
6.625%, 7/15/04......................................... 488,098
----------
5,599,966
----------
Beverages (3.2%)
1,000,000 Anheuser Busch Cos.,
7.50%, 3/15/12.......................................... 1,003,611
1,150,000 Anheuser-Busch Cos.,
9.00%, 12/1/09.......................................... 1,290,439
----------
2,294,050
----------
Building/Construction Products (2.6%)
2,000,000 Vulcan Materials Co.,
5.75%, 4/1/04........................................... 1,899,148
----------
Chemicals (2.3%)
1,750,000 Dow Chemical Co.,
7.375%, 11/1/29......................................... 1,695,169
----------
Computer Services (2.0%)
1,500,000 Electronic Data Systems, Inc.,
7.125%, 10/15/09........................................ 1,472,340
----------
Computers (1.7%)
1,250,000 Sun Microsystems, Inc.,
7.50%, 8/15/06.......................................... 1,248,078
----------
Consumer Goods & Services (1.2%)
1,000,000 Kimberly-Clark Corp.,
6.25%, 7/15/18.......................................... 883,067
----------
</TABLE>
<TABLE>
<CAPTION>
Principal Security Market
Amount Description Value
--------- ------------------------------------------------------ -----------
<C> <S> <C>
Corporate Bonds, continued:
Electric Utility (2.7%)
$2,000,000 Texas Utilities Electric Co.,
7.17%, 8/1/07......................................... $ 1,957,918
-----------
Electronic Components--Semiconductors (2.0%)
1,675,000 Motorola, Inc.,
6.50%, 11/15/28....................................... 1,456,304
-----------
Financial Services (15.1%)
2,000,000 Ford Motor Credit Co.,
7.75%, 2/15/07........................................ 2,013,434
2,000,000 General Electric Capital Corp.,
8.125%, 5/15/12....................................... 2,120,135
1,250,000 General Motors Acceptance Corp.,
7.75%, 1/19/10........................................ 1,250,925
1,500,000 Goldman Sachs Group, Inc.,
7.50%, 1/28/05........................................ 1,497,405
2,000,000 Household Financial Corp.,
7.875%, 3/1/07........................................ 2,017,284
750,000 Norwest Financial, Inc.,
6.625%, 7/15/04....................................... 731,879
1,250,000 Sears Roebuck Acceptance,
6.00%, 3/20/03........................................ 1,197,696
-----------
10,828,758
-----------
Forest & Paper Products (2.6%)
1,250,000 Weyerhaeuser Co.,
7.50%, 3/1/13......................................... 1,250,549
650,000 Weyerhaeuser Co.,
5.25%, 3/15/25........................................ 656,836
-----------
1,907,385
-----------
Media (3.9%)
1,500,000 Comcast Cable Communications,
6.20%, 11/15/08....................................... 1,336,124
1,000,000 Cox Communications, Inc.,
7.75%, 8/15/06........................................ 994,006
500,000 Cox Communications, Inc.,
6.40%, 8/1/08......................................... 455,766
-----------
2,785,896
-----------
Petroleum (3.2%)
1,000,000 Coastal Corp.,
6.375%, 2/1/09........................................ 908,839
1,500,000 Conoco, Inc.,
5.90%, 4/15/04........................................ 1,426,754
-----------
2,335,593
-----------
</TABLE>
Continued
-45-
[LOGO OF BB&T FUNDS]
<PAGE>
INTERMEDIATE CORPORATE BOND FUND
Schedule of Portfolio Investments, Continued
March 31, 2000
(Unaudited)
<TABLE>
<CAPTION>
Principal Security Market
Amount Description Value
--------- ------------------------------------------------------ -----------
<C> <S> <C>
Corporate Bonds, continued:
Pipelines (3.4%)
$ 500,000 Enron Corp.,
6.45%, 11/15/01....................................... $ 490,550
1,000,000 Enron Corp.,
7.125%, 5/15/07....................................... 957,382
1,000,000 Southern Natural Gas Co.,
8.625%, 5/2/02........................................ 1,020,476
-----------
2,468,408
-----------
Retail Stores (9.4%)
2,000,000 Lowes Co.,
6.50%, 3/15/29........................................ 1,687,896
2,000,000 Safeway, Inc.,
7.25%, 9/15/04........................................ 1,974,009
625,000 Target Corp.,
7.25%, 9/1/04......................................... 625,628
1,000,000 Target Corp.,
6.625%, 3/1/03........................................ 981,205
1,500,000 Wal-Mart Stores, Inc.,
7.55%, 2/15/30........................................ 1,531,293
-----------
6,800,031
-----------
Transportation & Shipping (2.7%)
2,000,000 Norfolk Southern Corp.,
6.95%, 5/1/02......................................... 1,973,534
-----------
Utilities--Telephone (7.2%)
1,000,000 Ameritech Capital Funding,
6.45%, 1/15/18........................................ 871,524
2,000,000 GTE California, Inc.,
7.65%, 3/15/07........................................ 2,017,023
1,000,000 Pacific Bell,
6.125%, 2/15/08....................................... 926,620
1,500,000 Sprint Capital Corp.,
6.375%, 5/1/09........................................ 1,378,493
-----------
5,193,660
-----------
Total Corporate Bonds 56,132,634
-----------
</TABLE>
<TABLE>
<CAPTION>
Principal Security Market
Amount Description Value
--------- ------------------------------------------------------ -----------
<C> <S> <C>
U.S. Government Agencies (6.5%)
Federal Home Loan Mortgage Corp. (4.4%)
$3,250,000 6.25%, 10/15/02....................................... $ 3,190,662
-----------
Federal National Mortgage Assoc. (2.1%)
1,600,000 6.625%, 9/15/09....................................... 1,538,696
-----------
Total U.S. Government Agencies 4,729,358
-----------
U.S. Treasury Bonds (6.6%)
2,750,000 7.50%, 11/15/16....................................... 3,116,094
1,750,000 5.50%, 8/15/28........................................ 1,622,579
-----------
Total U.S. Treasury Bonds 4,738,673
-----------
U.S. Treasury Notes (6.1%)
4,500,000 5.875%, 11/15/04...................................... 4,418,438
-----------
Total U.S. Treasury Notes 4,418,438
-----------
Investment Companies (2.8%)
2,007,633 Federated Prime Cash Obligation Fund.................. 2,007,633
-----------
Total Investment Companies 2,007,633
-----------
Total Investments
(Cost $72,024,711) (a)--99.7% 72,026,736
Other assets in excess of liabilities--0.3% 227,520
-----------
TOTAL NET ASSETS--100% $72,254,256
===========
</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..... $ 344,676
Unrealized
depreciation..... (342,651)
---------
Net unrealized
appreciation..... $ 2,025
=========
</TABLE>
See notes to financial statements
-46-
[LOGO OF BB&T FUNDS]
<PAGE>
NORTH CAROLINA INTERMEDIATE TAX-FREE FUND
Schedule of Portfolio Investments
March 31, 2000
(Unaudited)
<TABLE>
<CAPTION>
Shares
or
Principal Security Market
Amount Description Value
--------- ----------------------------------------------------- -----------
<C> <S> <C>
Municipal Bonds (98.2%):
Education Bonds (3.9%):
$1,000,000 Johnston Financial Corporation, North Carolina,
5.50%, 8/1/10, Callable 8/1/09 @ 101, FSA............ $ 1,030,120
2,000,000 North Carolina Education Revenue Bonds, 5.0%,
11/1/17, Callable 11/1/07 @ 102...................... 1,856,200
500,000 University of North Carolina, University Revenues,
5.20%, 5/15/05....................................... 507,145
-----------
3,393,465
-----------
General Obligation Bonds (73.7%):
500,000 Buncombe County, North Carolina, 5.80%, 2/1/05,
Callable 2/1/04 @ 100.5.............................. 519,115
1,000,000 Buncombe County, North Carolina, 5.10%, 3/1/07....... 1,011,570
500,000 Burke County, North Carolina, 6.30%, 3/1/01, MBIA.... 509,505
1,000,000 Cabarrus County, North Carolina, 5.30%, 2/1/11,
Callable 2/1/07 @ 102, MBIA.......................... 1,017,080
1,500,000 Cabarrus County, North Carolina, 5.30%, 2/1/13,
Callable 2/1/07 @ 102, MBIA.......................... 1,507,110
500,000 Catawba County, North Carolina, 5.70%, 6/1/06,
Callable 6/1/04 @ 101................................ 519,535
1,090,000 Charlotte, North Carolina, 5.00%, 6/1/05............. 1,101,292
1,000,000 Charlotte, North Carolina, 5.00%, 2/1/08............. 1,005,730
1,000,000 Charlotte, North Carolina, 5.25%, 2/1/14, Callable
2/1/08 @ 102......................................... 997,980
1,395,000 Charlotte, North Carolina, C.O.P., 5.25%, 3/01/2004.. 1,413,637
1,095,000 Charlotte, North Carolina, C.O.P., 5.00%, 3/01/2005.. 1,098,263
500,000 Charlotte, North Carolina, Series A, 5.50%, 7/1/06,
Callable 7/1/02 @ 102................................ 516,110
1,000,000 Charlotte, North Carolina, Water & Sewer, 6.20%,
6/1/01............................................... 1,020,900
1,500,000 Charlotte, North Carolina, Water & Sewer, 5.60%,
5/1/17, Callable 5/1/06 @ 102........................ 1,576,125
1,000,000 Charlotte, North Carolina, Water & Sewer, 5.60%,
5/1/21, Callable 5/1/06 @ 102........................ 1,050,750
1,000,000 Charlotte, North Carolina, Water And Sewer, 5.30%,
4/1/12............................................... 1,014,910
600,000 Cleveland County, North Carolina, 5.10%, 6/1/03,
FGIC................................................. 607,476
1,000,000 Craven County, North Carolina, 5.50%, 6/1/07,
Callable 6/1/06 @ 100.5, MBIA........................ 1,034,700
500,000 Craven County, North Carolina, 5.50%, 6/1/09,
Callable 6/1/06 @ 102, MBIA.......................... 518,540
1,085,000 Cumberland County, North Carolina, 5.50%, 3/1/03..... 1,109,239
500,000 Cumberland County, North Carolina, C.O.P., Civic
Center Project-Series A, 5.80%, 12/1/03, AMBAC....... 517,100
1,055,000 Cumberland County, North Carolina, 5.50%, 3/1/09..... 1,093,297
400,000 Davidson County, North Carolina, C.O.P., 5.00%,
6/1/18, Callable 6/1/08 @ 101, MBIA.................. 367,692
500,000 Durham County, North Carolina, 5.00%, 2/1/05......... 506,170
500,000 Durham County, North Carolina, C.O.P., 5.00%, 5/1/14,
Callable 5/1/08 @ 102................................ 476,635
1,000,000 Forsyth County, North Carolina, 5.20%, 6/1/02........ 1,013,410
500,000 Forsyth County, North Carolina, 5.60%, 8/1/03,
Callable 8/1/02 @ 100.5.............................. 512,355
500,000 Gaston County, North Carolina, 5.00%, 3/1/08,
Callable 3/1/06 @ 101, AMBAC......................... 501,925
1,000,000 Gaston County, North Carolina, 5.50%, 5/1/09,
Callable 5/1/07 @ 101, FGIC.......................... 1,037,580
500,000 Gaston County, North Carolina, 5.00%, 3/1/14, FGIC... 482,955
500,000 Goldsboro, North Carolina, 4.90%, 6/1/01............. 503,215
500,000 Greensboro, North Carolina, 5.40%, 4/1/02............ 508,135
700,000 Henderson County, North Carolina, 6.50%, 6/1/01...... 716,856
500,000 Johnston County, North Carolina, 5.00%, 5/1/09,
Callable 5/1/07 @ 101, FGIC.......................... 500,340
1,000,000 Johnston County, North Carolina, 5.50%, 3/01/12...... 1,029,940
2,000,000 Mecklenburg County, North Carolina, Public
Improvement, Series A, 5.00%, 2/1/06................. 2,017,980
500,000 Mecklenburg County, North Carolina, 5.75%, 3/1/03,
Callable 3/1/02 @ 100.5.............................. 512,335
1,000,000 Mecklenburg County, North Carolina, 5.40%, 4/1/03.... 1,021,340
2,000,000 Mecklenburg County, North Carolina, 5.00%, 2/1/04.... 2,020,000
</TABLE>
Continued
-47-
[LOGO OF BB&T FUNDS]
<PAGE>
NORTH CAROLINA INTERMEDIATE TAX-FREE FUND
Schedule of Portfolio Investments, Continued
March 31, 2000
(Unaudited)
<TABLE>
<CAPTION>
Shares
or
Principal Security Market
Amount Description Value
--------- ----------------------------------------------------- -----------
<C> <S> <C>
Municipal Bonds, continued:
General Obligation Bonds, continued:
$1,000,000 Mecklenburg, North Carolina, 5.00%, 4/1/07........... $ 1,007,630
1,000,000 Mecklenburg, North Carolina, 5.00%, 2/1/09........... 1,003,480
1,340,000 New Hanover County, North Carolina, 5.30%, 11/01/03.. 1,366,170
1,500,000 New Hanover County, North Carolina, 5.30%, 11/1/08... 1,533,135
625,000 New Hanover County, North Carolina, 5.30%, 5/1/09,
Callable 5/1/06 @ 101.5.............................. 637,613
1,000,000 North Carolina State, 5.60%, 4/1/01.................. 1,014,280
1,500,000 North Carolina State, 5.10%, 3/1/05.................. 1,521,405
2,000,000 North Carolina State, 5.25%, 3/1/07.................. 2,044,099
2,000,000 North Carolina State, 5.10%, 6/1/08, Callable 6/1/06
@ 101................................................ 2,025,180
1,000,000 North Carolina State, 5.10%, 6/1/09, Callable 6/1/06
@.................................................... 1,010,880
1,000,000 North Carolina State, 5.10%, 6/1/10, Callable 6/1/06
@ 102................................................ 1,007,030
1,000,000 North Carolina State, 5.25%, 3/1/15.................. 989,760
1,000,000 North Carolina State Highway, 5.00%, 5/1/11, Callable
5/1/07 @ 102......................................... 994,080
1,000,000 North Carolina State Highway, 5.00%, 5/1/13, Callable
5/1/07 @ 102......................................... 975,580
915,000 North Carolina State, Clean Water, 5.00%, 6/1/13,
Callable 6/1/09 @ 102................................ 892,537
500,000 Onslow County, North Carolina, 5.30%, 5/1/05......... 510,910
1,750,000 Randolph County, North Carolina, C.O.P., 5.30%,
6/1/13, Callable 6/1/09 @ 101, FSA................... 1,744,943
500,000 Rocky Mount, North Carolina, 6.10%, 5/1/03, Callable
5/1/02 @ 100.5....................................... 516,115
1,090,000 Rocky Mount, North Carolina, 5.00%, 2/1/10........... 1,086,577
500,000 Stokes County, North Carolina, 5.00%, 6/1/13,
Callable 6/1/08 @ 102, FGIC.......................... 485,875
500,000 Surry County, North Carolina, 6.25%, 4/1/01, AMBAC... 509,985
1,000,000 Union County, North Carolina, 5.30%, 3/1/13, Callable
3/1/09 @ 100.5, FGIC................................. 1,005,720
1,000,000 Union County, North Carolina, 5.40%, 3/1/20, Callable
3/1/09 @ 102......................................... 974,950
1,000,000 Wake County, North Carolina, 5.30%, 2/1/11........... 1,016,750
500,000 Wilkes County, North Carolina, 5.30%, 6/1/08,
Callable 6/1/03 @ 102................................ 508,915
1,000,000 Wilmington, North Carolina, 5.00%, 4/1/08, FGIC...... 1,003,930
850,000 Wilmington, North Carolina, 5.00%, 4/1/10, FGIC...... 847,357
1,000,000 Wilmington, North Carolina, Water & Sewer Systems,
5.60%, 6/1/15, Callable 6/1/10 @ 101, FSA............ 1,012,340
-----------
63,736,053
-----------
Health Care Bonds (6.5%):
245,000 Charlotte-Mecklenberg Hospital Authority, North
Carolina, Health Care System Revenue, 5.70%, 1/1/01.. 247,739
200,000 Charlotte-Mecklenburg Hospital Authority, North
Carolina, Health Care System Revenue, 5.70%, 1/1/01.. 202,088
185,000 Charlotte-Mecklenburg Hospital Authority, North
Carolina, Health Care System Revenue, 5.90%, 1/1/02.. 188,735
110,000 Charlotte-Mecklenburg Hospital Authority, North
Carolina, Health Care System Revenue, 6.00%, 1/1/03,
Pre Refunded 1/1/02 @ 102............................ 114,432
190,000 Charlotte-Mecklenburg Hospital Authority, North
Carolina, Health Care System Revenue, 6.00%, 1/1/03,
Callable 1/1/02 @ 102................................ 195,054
1,350,000 Cumberland County, North Carolina, Hospital
Facilities, 5.25%, 10/1/10, Callable 10/1/09 @ 101... 1,282,041
1,000,000 Cumberland Hospital, 5.25%, 10/1/2011, Callable
10/1/09 @ 101........................................ 937,550
1,000,000 New Hanover County Hospital, North Carolina, 5.25%,
10/1/12, Callable 10/1/09 @ 101...................... 993,670
500,000 North Carolina Medical Care, Common Health Care
Revenue, 5.00%, 10/1/08.............................. 495,905
1,000,000 Pitt County, North Carolina, Memorial Hospital
Revenue, 5.50%, 12/1/15, Callable 12/1/05 @ 102...... 1,005,510
-----------
5,662,724
-----------
</TABLE>
Continued
-48-
[LOGO OF BB&T FUNDS]
<PAGE>
NORTH CAROLINA INTERMEDIATE TAX-FREE FUND
Schedule of Portfolio Investments, Continued
March 31, 2000
(Unaudited)
<TABLE>
<CAPTION>
Shares
or
Principal Security Market
Amount Description Value
--------- ---------------------------------------------------- -----------
<C> <S> <C>
Municipal Bonds, continued:
Transportation Bonds (1.2%):
$1,000,000 Piedmont, North Carolina, Triad Airport Authority,
6.375%, 7/1/16, MBIA................................ $ 1,073,240
-----------
Utility Bonds (12.9%):
1,500,000 Asheville, North Carolina, Water System Revenue,
5.63%, 8/1/16, Callable 8/1/06 @ 102, FGIC.......... 1,510,275
500,000 Buncombe County, North Carolina, 5.30%, 3/1/08, FSA,
Callable 3/1/06 @ 102............................... 508,050
1,500,000 Catawba County, North Carolina, 5.50%, 1/1/13,
Callable 1/1/13 @ 100, AMBAC........................ 1,539,150
1,000,000 Gastonia, North Carolina, 5.00%, 5/1/10, MBIA....... 985,960
500,000 Lincolnton, North Carolina, Enterprise System
Revenue, Water & Sewer Improvement, 5.10%, 5/1/09,
Callable 11/1/06 @ 102, MBIA........................ 501,355
1,775,000 North Carolina Eastern Municipal Power, 6.00%,
1/1/26, Prerefunded 1/1/22 @ 101.................... 1,849,762
1,085,000 North Carolina, Eastern Power Agency, 5.00%,
1/1/17.............................................. 1,024,772
385,000 North Carolina, Municipal Power Agency, No. 1,
Catawba Electric Revenue, 5.00%, 1/1/20............. 359,756
1,825,000 Wake County, North Carolina, Waste Management
Project, 5.00%, 2/01/05............................. 1,839,673
1,025,000 Winston-Salem, North Carolina, Water & Sewer, 5.00%,
6/1/12, Callable 6/1/07 @ 102....................... 1,000,298
-----------
11,119,051
-----------
Total Municipal Bonds 84,984,533
-----------
Investment Companies (3.0%):
2,583,523 Federated Municipal Obligations Fund................ 2,583,523
-----------
Total Investment Companies 2,583,523
-----------
Total Investments (Cost $87,303,267) (a)--101.2% 87,568,056
Liabilities in excess of other assets--(1.2)% (1,004,594)
-----------
TOTAL NET ASSETS--100.0% $86,563,462
===========
</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.. $ 879,377
Unrealized depreciation.. (614,588)
---------
Net unrealized
appreciation............. $ 264,789
=========
</TABLE>
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
-49-
[LOGO OF BB&T FUNDS]
<PAGE>
SOUTH CAROLINA INTERMEDIATE TAX-FREE FUND
Schedule of Portfolio Investments
March 31, 2000
(Unaudited)
<TABLE>
<CAPTION>
Shares
or
Principal Security Market
Amount Description Value
--------- ----------------------------------------------------- -----------
<C> <S> <C>
Municipal Bonds (98.1%):
Education Bonds (3.0%):
$ 500,000 University of South Carolina, University Revenues,
5.65%, 6/1/12, Callable 6/1/06 @ 101, MBIA........... $ 511,780
-----------
General Obligation Bonds (51.0%):
250,000 Beaufort County, South Carolina, School Improvements,
Series B, 5.00%, 2/1/07, SCSDE....................... 250,125
750,000 Berkeley County School District, South Carolina,
5.375%, 4/1/09, Callable 4/1/08 @ 102................ 768,000
1,000,000 Charleston County, South Carolina, 5.625%, 6/1/07,
Callable 6/1/04 @ 102, SAW........................... 1,034,880
500,000 Charleston County, South Carolina, 5.00%, 2/1/08,
Callable 2/1/05 @ 102................................ 499,645
500,000 Charleston County, South Carolina, 5.25%, 9/1/17,
Callable 9/1/09 @ 101................................ 486,630
1,000,000 Charleston County, South Carolina, School District,
4.00%, 2/1/2004...................................... 956,040
500,000 Greenville County, South Carolina, School District,
4.20%, 3/1/03, SDSCE................................. 493,805
500,000 Horry County, South Carolina, 7.00%, 3/1/05, FGIC.... 544,675
500,000 Horry County, South Carolina, 5.50%, 1/1/12, Callable
1/1/05 @ 100, FGIC................................... 505,570
500,000 Lancaster County, South Carolina, 5.00%, 3/1/11,
Callable 3/1/10 @ 101................................ 490,095
500,000 Lexington & Richland Counties, South Carolina, 5.15%,
3/1/07, MBIA......................................... 504,030
500,000 South Carolina, State Capital Improvements, 5.00%,
10/01/08, Callable 10/01/07 @ 102.................... 501,375
500,000 South Carolina, State Highway, 5.63%, 7/1/09,
Callable 7/1/06 @ 102................................ 520,870
500,000 South Carolina, State School Facilities, 5.75%,
1/01/10, St Aid Withholding.......................... 527,430
500,000 York County, South Carolina, School District, 5.80%,
3/1/13, Callable 3/1/09 @ 101, FSA SCSDE............. 521,415
-----------
8,604,585
-----------
Health Care Bonds (4.4%):
250,000 Charleston County, South Carolina, Health Care
Services, Series A, 5.00%, 8/15/12,
Callable 8/15/09 @ 101, FSA.......................... 238,655
500,000 Greenville Hospital Systems South Carolina, 5.60%,
5/1/10............................................... 505,800
-----------
744,455
-----------
Housing Bonds (6.0%):
500,000 South Carolina Housing Finance & Development, 5.50%,
7/1/12, Callable 12/1/09 @ 100, FSA.................. 502,940
500,000 South Carolina Jobs Economic Development--Anderson,
5.50%, 2/11/2011, FSA................................ 509,360
-----------
1,012,300
-----------
Pollution Control Bonds (6.2%):
500,000 Charleston County, South Carolina, Solid Waste,
5.60%, 1/1/04........................................ 512,675
500,000 Darlington County, South Carolina, Pollution Control,
6.60%, 11/1/10, Callable 11/1/02 @ 103, MBIA......... 531,585
-----------
1,044,260
-----------
Transportation Bonds (4.2%):
700,000 South Carolina, Transportation Infrastructure, 5.25%,
10/1/08, AMBAC....................................... 710,059
-----------
Utility Bonds (23.3%):
200,000 Camden, South Carolina, Public Utility Revenue,
5.50%, 3/1/22, Callable 3/1/07 @ 102................. 192,840
500,000 Columbia, South Carolina, Waterworks & Sewer Systems,
5.70%, 2/1/10........................................ 522,935
1,000,000 Piedmont, Municipal Power Agency, South Carolina,
5.40%, 1/1/07, MBIA.................................. 1,024,900
200,000 Piedmont, Municipal Power Revenue, 5.50%, 1/1/13,
MBIA................................................. 204,588
500,000 South Carolina State Public Authority, Series A,
5.38%, 1/1/04, MBIA.................................. 508,520
500,000 South Carolina State Public Service, 5.50%, 1/1/09,
MBIA................................................. 513,935
</TABLE>
Continued
-50-
[LOGO OF BB&T FUNDS]
<PAGE>
SOUTH CAROLINA INTERMEDIATE TAX-FREE FUND
Schedule of Portfolio Investments, Continued
March 31, 2000
(Unaudited)
<TABLE>
<CAPTION>
Shares
or
Principal Security Market
Amount Description Value
--------- ------------------------------------------------------ -----------
<C> <S> <C>
Municipal Bonds, continued:
Utility Bonds, continued:
$ 500,000 Spartanburg South Carolina Water Works Revenue, 5.00%,
6/01/19, Callable 6/1/07 @ 101, FGIC.................. $ 462,760
500,000 Winnsboro, South Carolina, Utility, 5.25%, 8/15/10,
MBIA.................................................. 504,350
-----------
3,934,828
-----------
Total Municipal Bonds 16,562,267
-----------
Investment Companies (1.0%):
174,056 Federated Municipal Obligations Fund.................. 174,056
-----------
Total Investment Companies 174,056
-----------
Total Investments (Cost $16,833,162) (a)--99.1% 16,736,323
Other assets in excess of liabilities--0.9% 145,026
-----------
TOTAL NET ASSETS--100.0% $16,881,349
===========
</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 appreciation.. $ 87,912
Unrealized depreciation.. (184,751)
---------
Net unrealized deprecia-
tion..................... $ (96,839)
=========
</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
SCSDE--South Carolina School District Enhancement
See notes to financial statements
-51-
[LOGO OF BB&T FUNDS]
<PAGE>
VIRGINIA INTERMEDIATE TAX-FREE FUND
Schedule of Portfolio Investments
March 31, 2000
(Unaudited)
<TABLE>
<CAPTION>
Shares
or
Principal Security Market
Amount Description Value
--------- ----------------------------------------------------- -----------
<C> <S> <C>
Municipal Bonds (98.6%):
Correctional Facility Improvements (3.1%):
$1,500,000 Big Stone Gap, 5.25%, 9/1/10, Callable 9/1/05 @ 102.. $ 1,509,075
1,000,000 Blue Ridge Regional Jail, 5.20%, 12/1/17, Callable
12/1/07 @ 102, MBIA.................................. 952,720
-----------
2,461,795
-----------
Education Bonds (12.6%):
810,000 Hampton Medical College Series 91A, 6.50%, 11/15/04,
Callable 11/15/01 @ 102.............................. 843,121
355,000 Hampton Medical College Series 91B, 6.50%, 11/15/04,
Prerefunded 11/15/01 @ 102........................... 371,919
1,000,000 Virginia College Building Authority, 5.00%, 9/1/14,
Callable 9/1/07 @ 101................................ 959,270
1,000,000 Virginia State Public School Authority, 6.25%,
1/1/04, Callable 1/1/02 @ 102........................ 1,041,690
1,000,000 Virginia State Public School Authority, 5.25%,
8/1/10, Callable 8/01/09 @ 101....................... 1,013,460
1,125,000 Virginia State Public School Authority, 5.00%,
8/1/11, Callable 8/1/07 @ 101........................ 1,112,468
1,000,000 Virginia State PublicSchool Authority, 6.13%, 1/1/03,
Callable 1/1/02 @ 102................................ 1,036,270
1,050,000 Virginia University, 5.00%, 6/1/06................... 1,055,460
1,000,000 Virginia University, 5.00%, 6/1/08................... 999,930
1,500,000 Winchester Virginia Education Authority, 5.00%,
10/1/12, Callable 10/1/08 @ 102, MBIA................ 1,459,245
-----------
9,892,833
-----------
General Obligation Bonds (51.1%):
1,000,000 Arlington County, Virginia, 5.00%, 6/1/07............ 1,006,520
1,000,000 Arlington County, Virginia, 5.13%, 6/1/11, Callable
6/1/09 @ 100......................................... 1,001,740
1,000,000 Arlington County, Virginia, 5.00%, 10/1/12, Callable
10/1/08 @ 101........................................ 981,780
1,800,000 Arlington County, Virginia, 5.10%, 6/1/15, Callable
6/1/07 @ 101.5....................................... 1,747,152
1,000,000 Fairfax County, 5.00%, 12/01/04...................... 1,009,870
1,155,000 Fairfax County, Virginia, 5.25%, 6/1/09, Callable
6/1/04 @............................................. 1,170,073
1,100,000 Fairfax County, Virginia, 5.00%, 6/1/14, Callable
6/1/06 @............................................. 1,060,961
1,000,000 Fairfax County, Virginia, Public Improvement,General
Obligation, 5.50%, 12/1/07, State Aid Witholding..... 1,036,600
1,000,000 Loudoun County, Virginia, 5.00%, 12/1/05............. 1,008,270
1,200,000 Manassas, Virginia, 5.25%, 1/1/11.................... 1,209,924
1,000,000 Newport News, Virginia, 5.00%, 1/15/07............... 1,003,350
1,000,000 Norfolk, Virginia, 5.00%, 7/1/02, FGIC............... 1,009,030
1,840,000 Norfolk, Virginia, 5.375%, 6/1/05, FGIC.............. 1,886,938
1,500,000 Norfolk, Virginia, 5.00%, 7/1/14, Callable 7/1/08 @
101,................................................. 1,445,100
1,000,000 Petersburg, Virginia, 5.25%, 1/15/15, Callable
1/15/07 @ 102, FGIC.................................. 985,770
1,000,000 Roanoke, Virginia, 5.00%, 8/1/12, Callable 8/1/09 @
102.................................................. 977,440
2,925,000 Spotsylvanis County, Virginia, 5.50%, 7/15/12........ 3,011,755
1,500,000 Suffolk, Virginia Public Improvement, 5.00%, 12/1/15,
Callable 12/1/07 @ 102, AMBAC........................ 1,429,380
2,000,000 Virgina State, 5.0%, 6/1/04.......................... 2,020,080
1,500,000 Virginia Beach, 6.40%, 8/1/04, Prerefunded 8/1/01 @
102.................................................. 1,565,235
1,000,000 Virginia Beach, 5.25%, 8/1/06........................ 1,019,880
2,695,000 Virginia Beach Public Improvement, 5.25%, 3/1/08..... 2,742,001
3,205,000 Virginia Beach Public Improvement, 5.25%, 3/1/11,
Callable 3/1/10 @ 101................................ 3,239,357
1,200,000 Virginia Beach, Virginia, Public Improvement, 5.25%,
8/1/07, Non-Callable................................. 1,224,048
1,500,000 Virginia State, 5.00%, 6/1/10, Callable 6/1/06 @
100.................................................. 1,495,170
1,000,000 Virginia State, 5.00%, 6/1/10, Callable 6/1/07 @
100.................................................. 996,780
</TABLE>
Continued
-52-
[LOGO OF BB&T FUNDS]
<PAGE>
VIRGINIA INTERMEDIATE TAX-FREE FUND
Schedule of Portfolio Investments, Continued
March 31, 2000
(Unaudited)
<TABLE>
<CAPTION>
Shares
or
Principal Security Market
Amount Description Value
--------- ----------------------------------------------------- -----------
<C> <S> <C>
Municipal Bonds, continued:
General Obligation Bonds, continued:
$2,050,000 Virginia State Public School Authority, 5.25%,
8/1/10............................................... $ 2,084,194
845,000 Washington DC, 7.25%, 6/1/01, Prerefunded 6/1/00 @
102, AMBAC........................................... 865,356
-----------
40,233,754
-----------
Health Care Bonds (7.2%):
1,160,000 Danville, Virginia, Regular Hospital Authority,
5.00%, 10/1/07, AMBAC................................ 1,154,989
1,000,000 Lynchburg, Virginia Industrial Development Authority,
Healthcare Facility, 5.38%, 1/1/13, Callable 1/1/08 @
101.................................................. 953,320
1,000,000 Virginia Beach Development Authority Health Care,
5.25%, 11/1/09, Callable 11/1/08 @ 101, MBIA......... 999,950
1,000,000 Virginia Beach Hospital Authority, 6.60%, 11/1/09,
Prerefunded 11/1/01 @ 102............................ 1,048,810
1,500,000 Winchester Hospital, Virginia, 5.25%, 1/1/06,
Callable 1/1/04 @ 102, AMBAC......................... 1,509,480
-----------
5,666,549
-----------
Housing Bonds (11.0%):
1,000,000 Chesapeake Court House Project, Virginia, 5.25%,
6/1/17, Callable 6/1/07 @ 102, MBIA.................. 958,450
1,200,000 Virginal State Public Building Authority, 5.00%,
8/1/05............................................... 1,205,496
1,000,000 Virginia College Building Authority, 5.50%, 4/1/10... 1,022,380
1,000,000 Virginia College Building Authority Revenue Bond,
5.00%, 8/1/13, Callable 8/1/07 @ 101................. 968,720
1,000,000 Virginia Housing Development Authority Series 1,
5.70%, 7/1/00........................................ 1,002,810
1,000,000 Virginia Housing Development Authority Series 1,
5.90%, 7/1/02........................................ 1,014,360
1,000,000 Virginia Public Building Authority, 5.20%, 8/1/03,
Callable 8/1/02 @ 101................................ 1,012,730
1,500,000 Virginia Public Building Authority, 5.10%, 8/1/07,
Callable 8/1/05 @ 101................................ 1,507,185
-----------
8,692,131
-----------
Transportation Bonds (9.9%):
2,000,000 Chesapeake Bay Bridge & Tunnel, Virginia, 5.50%,
7/1/06, Callable 7/1/05 @ 102, FGIC.................. 2,062,680
1,000,000 Fairfax County, Virginia, Economic Development,
5.25%, 9/1/10, Callable 9/1/09 @ 102................. 1,011,960
750,000 Metropolitan Washington DC Airport, 7.10%, 10/1/01,
Callable 10/1/00 @ 102, FGIC......................... 773,618
1,350,000 Virginia Commonwealth, 5.13%, 5/15/19, Callable
5/15/07 @ 101........................................ 1,260,522
1,000,000 Virginia Commonwealth Transit Board, 5.75%, 5/15/09.. 1,052,090
1,500,000 Washington DC Metro Area Transit Authority, 6.00%,
7/1/09, FGIC......................................... 1,597,290
-----------
7,758,160
-----------
Utility Bonds (3.7%):
1,000,000 Fairfax County, Virginia, Water Authority, 5.00%,
4/1/21, Callable 4/1/17 @ 100........................ 912,640
1,000,000 Henrico County, Virginia, Water & Sewer Revenue Bond,
5.25%, 5/1/13, Callable 5/1/09 @102.................. 995,280
1,000,000 Spotsylvania County, Virginia, 5.25%, 6/1/13,
Callable 6/1/07 @ 102, MBIA.......................... 993,360
-----------
2,901,280
-----------
Total Municipal Bonds 77,606,502
-----------
</TABLE>
Continued
-53-
[LOGO OF BB&T FUNDS]
<PAGE>
VIRGINIA INTERMEDIATE TAX-FREE FUND
Schedule of Portfolio Investments, Continued
March 31, 2000
(Unaudited)
<TABLE>
<CAPTION>
Shares
or
Principal Security Market
Amount Description Value
--------- ------------------------------------------------------- -----------
<C> <S> <C>
Investment Companies (0.4%):
276,445 Federated Municipal Obligations Fund................... $ 276,445
-----------
Total Investment Companies 276,445
-----------
Total Investments (Cost $78,313,279) (a)--99.0% 77,882,947
Other assets in excess of liabilities--1.0% 792,630
-----------
TOTAL NET ASSETS--100.0% $78,675,577
===========
</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................... $ 594,327
Unrealized deprecia-
tion................... (1,024,659)
-----------
Net unrealized depreci-
ation.................. $ (430,332)
===========
</TABLE>
AMBAC--AMBAC Indemnity Corporation.
FGIC--Insured by Financial Guaranty Insurance Corporation
MBIA--Insured by Municipal Bond Insurance Association
See notes to financial statements
-54-
[LOGO OF BB&T FUNDS]
<PAGE>
GROWTH AND INCOME STOCK FUND
Schedule of Portfolio Investments
March 31, 2000
(Unaudited)
<TABLE>
<CAPTION>
Shares
or
Principal Security Market
Amount Description Value
--------- ------------------------------------------------------ ------------
<C> <S> <C>
Common Stocks (96.3%):
Aerospace/Defense (2.3%):
71,600 Lockheed Martin Corp.(b) ............................. $ 1,463,325
127,000 Parker Hannifin Corp. ................................ 5,246,688
161,700 Raytheon Co.--Class A(b).............................. 3,041,981
------------
9,751,994
------------
Apparel (0.5%):
93,200 V. F. Corp.(b) ....................................... 2,242,625
------------
Automobiles & Trucks (0.9%):
79,815 Ford Motor Co. ....................................... 3,666,502
------------
Banking & Finance (9.7%):
170,000 Bank Of America Corp.(b) ............................. 8,914,375
140,000 Citigroup, Inc. ...................................... 8,303,750
79,560 J.P. Morgan & Co.(b) ................................. 10,482,029
235,200 Pacific Century Financial Corp. ...................... 4,777,500
145,000 U.S. Bancorp(b)....................................... 3,171,875
84,700 Wachovia Corp. ....................................... 5,722,544
------------
41,372,073
------------
Business Equipment & Services (2.5%):
209,900 Harris Corp. ......................................... 7,254,669
72,300 Pitney Bowes, Inc. ................................... 3,230,906
------------
10,485,575
------------
Chemicals (1.1%):
168,000 Air Products & Chemicals, Inc. ....................... 4,777,500
------------
Computer Software (3.9%):
92,000 Adobe Systems, Inc.(b)................................ 10,240,750
105,000 Computer Associates International, Inc.(b) ........... 6,214,688
------------
16,455,438
------------
Computers (6.4%):
60,000 Electronic Data Systems Corp. ........................ 3,851,250
88,000 Hewlett-Packard Co. .................................. 11,665,500
99,800 IBM Corp.(b) ......................................... 11,776,400
------------
27,293,150
------------
Consumer Goods & Services (3.1%):
230,100 American Greetings Corp. ............................. 4,199,325
163,000 Kimberly-Clark Corp.(b) .............................. 9,128,000
------------
13,327,325
------------
Containers (0.9%):
153,725 Sonoco Products Co. .................................. 3,612,538
------------
</TABLE>
<TABLE>
<CAPTION>
Shares
or
Principal Security Market
Amount Description Value
--------- ------------------------------------------------------ ------------
<C> <S> <C>
Common Stocks, continued:
Diversified Products (0.4%):
30,000 E.I. duPont de Nemours Co. ........................... $ 1,586,250
------------
Electrical Equipment (2.2%):
174,370 Emerson Electric...................................... 9,219,814
------------
Electronic Components (1.7%):
112,500 Avnet, Inc. .......................................... 7,087,500
------------
Electronic Instruments (1.3%):
96,050 Tektronix, Inc. ...................................... 5,378,800
------------
Electronics (0.0%):
61,200 Lanier, Inc. ......................................... 126,225
------------
Energy/Coal (0.1%):
32,977 Arch Coal, Inc. ...................................... 230,839
------------
Engineering (0.6%):
87,000 Fluor Corp. .......................................... 2,697,000
------------
Financial Services (2.0%):
150,000 Fannie Mae............................................ 8,465,625
------------
Food & Related (4.7%):
181,500 Bob Evans Farms....................................... 2,268,750
166,800 Dole Food Co.(b) ..................................... 3,242,175
507,400 SUPERVALU, Inc. ...................................... 9,608,888
215,000 Universal Foods Corp. ................................ 4,595,625
------------
19,715,438
------------
Forest & Paper Products (1.8%):
130,900 Weyerhaeuser Co.(b) .................................. 7,461,300
------------
Household--Major Appliances (0.9%):
64,200 Whirlpool Corp.(b) ................................... 3,763,725
------------
Household Products/Wares (1.1%):
99,107 Unilever N.V.(b) ..................................... 4,769,524
------------
Insurance (7.3%):
143,000 Aetna Services, Inc.(b) .............................. 7,963,312
132,762 AON Corp.(b) ......................................... 4,281,575
199,400 Lincoln National Corp. ............................... 6,679,899
246,800 SAFECO Corp.(b) ...................................... 6,555,625
163,000 St. Paul Cos., Inc.(b) ............................... 5,562,375
------------
31,042,786
------------
Leisure Time Industries (1.2%):
302,725 Hasbro, Inc. ......................................... 4,994,963
------------
</TABLE>
Continued
-55-
[LOGO OF BB&T FUNDS]
<PAGE>
GROWTH AND INCOME STOCK FUND
Schedule of Portfolio Investments, Continued
March 31, 2000
(Unaudited)
<TABLE>
<CAPTION>
Shares
or
Principal Security Market
Amount Description Value
--------- ------------------------------------------------------ ------------
<C> <S> <C>
Common Stocks, continued:
Machinery & Equipment (0.9%):
158,500 Trinity Industries(b)................................. $ 3,754,469
------------
Manufacturing (0.9%):
69,000 Eastman Kodak Co. .................................... 3,747,563
------------
Media (1.6%):
80,300 Banta Corp. .......................................... 1,475,513
99,200 Media General, Inc. .................................. 5,195,600
------------
6,671,113
------------
Medical Equipment & Supplies (4.0%):
139,300 Johnson & Johnson..................................... 9,759,706
246,000 Mallinckrodt, Inc. ................................... 7,072,500
------------
16,832,206
------------
Office Equipment & Services (0.3%):
50,000 Xerox Corp. .......................................... 1,300,000
------------
Petroleum (6.8%):
134,000 Ashland, Inc. ........................................ 4,480,625
101,030 Chevron Corp. ........................................ 9,338,961
80,000 Exxon Mobil Corp. .................................... 6,225,000
187,200 Phillips Petroleum Co. ............................... 8,658,000
------------
28,702,586
------------
Petroleum--International (1.3%):
93,600 Royal Dutch Petroleum Co.--NY Shares(b)............... 5,387,850
------------
Pharmaceuticals (3.4%):
236,000 Abbott Laboratories................................... 8,304,250
55,480 Bristol-Myers Squibb Co. ............................. 3,203,970
80,400 Schering-Plough Corp. ................................ 2,954,700
------------
14,462,920
------------
Publishing (0.8%):
77,100 Houghton Mifflin Co.(b)............................... 3,271,931
------------
Railroad (0.3%):
56,000 CSX Corp. ............................................ 1,316,000
------------
Retail (1.0%):
150,250 May Department Stores Co.(b).......................... 4,282,125
------------
Retail--Food Stores (0.8%):
107,020 Albertson's, Inc.(b).................................. 3,317,620
------------
</TABLE>
<TABLE>
<CAPTION>
Shares
or
Principal Security Market
Amount Description Value
--------- ---------------------------------------------------- ------------
<C> <S> <C>
Common Stocks, continued:
Security Brokers & Dealers (1.7%):
182,062 Edwards (A.G.), Inc.(b)............................. $ 7,282,480
------------
Telecommunication--Equipment (1.3%):
29,200 Corning, Inc.(b).................................... 5,664,800
------------
Telecommunications (1.6%):
55,500 BCE, Inc. .......................................... 6,961,781
------------
Tobacco (0.7%):
150,290 Philip Morris, Inc.(b).............................. 3,174,876
------------
Transportation--Marine (0.2%):
48,000 Alexander & Baldwin................................. 990,000
------------
Utilities--Electric (3.3%):
278,500 New Century Energies, Inc.(b)....................... 8,372,406
190,000 Texas Utilities Co. ................................ 5,640,625
------------
14,013,031
------------
Utilities--Gas & Pipeline (0.8%):
100,800 NICOR, Inc.(b)...................................... 3,320,100
------------
Utilities--Telephone (8.0%):
239,122 AT&T Corp.(b)....................................... 13,450,612
115,000 BellSouth Corp. .................................... 5,405,000
244,400 SBC Communications, Inc. ........................... 10,264,800
81,400 Sprint Corp.(b)..................................... 5,128,200
------------
34,248,612
------------
Total Common Stocks 408,226,572
------------
U.S. Government Agencies (2.3%):
Federal Home Loan Mortgage Corp. (2.3%):
$10,000,000 0.00%, 05/11/00*.................................... 9,936,600
------------
Total U.S. Government Agencies 9,936,600
------------
Investment Companies (1.5%):
6,167,366 Federated Government Obligation Fund................ 6,167,366
------------
Total Investment Companies 6,167,366
------------
Short Term Securities Purchased with Securities Lending
Collateral (29.2%):
Commercial Paper (20.4%):
27,000,000 Tyco, 6.23%, 5/5/00................................. 26,726,975
25,000,000 Conagra, 6.06%, 4/7/00 ............................. 24,762,500
25,000,000 CSX Corporation, 6.00%, 4/4/00...................... 24,887,875
10,000,000 Safeway, 6.19%, 4/26/00............................. 9,960,000
------------
86,337,350
------------
</TABLE>
Continued
-56-
[LOGO OF BB&T FUNDS]
<PAGE>
GROWTH AND INCOME STOCK FUND
Schedule of Portfolio Investments, Continued
March 31, 2000
(Unaudited)
<TABLE>
<CAPTION>
Shares
or
Principal Security Market
Amount Description Value
--------- -------------------------------------------------- -------------
<C> <S> <C>
Short Term Securities Purchased with Securities Lending
Collateral, continued:
Investment Companies (3.6%):
15,364,350 AIM Liquid Asset Money Market Fund................ $ 15,364,350
-------------
Repurchase Agreements (5.2%):
22,000,000 Lehman Brothers Triparty Agreement, 6.425%,
4/3/00, (See Significant Accounting Policies)..... 22,000,000
-------------
Total Short Term Securities Purchased with Securities
Lending Collateral 123,701,700
-------------
Total Investments
(Cost $457,016,671)(a)--129.3% 548,032,238
Liabilities in excess of other assets--(29.3)% (124,176,496)
-------------
TOTAL NET ASSETS--100.0% $ 423,855,742
=============
</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........... $122,829,576
Unrealized
depreciation........... (31,814,009)
------------
Net unrealized
appreciation........... $ 91,015,567
============
</TABLE>
(b) All or part of this security has been loaned at
March 31, 2000.
* Represents Discount Note.
See notes to financial statements
-57-
[LOGO OF BB&T FUNDS]
<PAGE>
BALANCED FUND
Schedule of Portfolio Investments
March 31, 2000
(Unaudited)
<TABLE>
<CAPTION>
Shares
or
Principal Security Market
Amount Description Value
--------- ------------------------------------------------------ ------------
<C> <S> <C>
Common Stocks (59.0%):
Aerospace/Defense (0.8%):
11,000 Boeing Co. ........................................... $ 417,313
18,000 Parker Hannifin Corp. ................................ 743,625
------------
1,160,938
------------
Aluminum (0.3%):
6,500 Alcoa, Inc. .......................................... 456,625
------------
Apparel (0.3%):
21,000 V. F. Corp. .......................................... 505,313
------------
Automobiles & Trucks (0.7%):
21,500 Ford Motor Co. ....................................... 987,656
------------
Banking & Finance (3.5%):
10,000 Bank Of America Corp. ................................ 524,375
15,000 Bank One Corp. ....................................... 515,625
24,000 Citigroup, Inc. ...................................... 1,423,499
9,000 J.P. Morgan & Co. .................................... 1,185,750
10,000 U.S. Bancorp.......................................... 218,750
19,000 Wachovia Corp. ....................................... 1,283,688
------------
5,151,687
------------
Banks (0.0%):
1,600 Wells Fargo Co. ...................................... 65,500
------------
Beverages (1.2%):
19,000 Anheuser-Busch Cos.(b)................................ 1,182,750
8,000 Coca-Cola Co. ........................................ 375,500
8,000 Pepsico, Inc. ........................................ 276,500
------------
1,834,750
------------
Business Equipment & Services (0.8%):
35,000 Harris Corp. ......................................... 1,209,688
------------
Chemicals (0.3%):
15,000 Air Products & Chemicals, Inc. ....................... 426,563
------------
Computer--Peripherals (0.2%):
3,000 Lexmark Intl. Group, Inc.(b).......................... 317,250
------------
Computer Networking (0.6%):
11,000 Cisco Systems, Inc.(b)................................ 850,438
------------
Computer Software (3.8%):
20,000 Adobe Systems, Inc. .................................. 2,226,249
20,000 Computer Associates International, Inc. .............. 1,183,750
</TABLE>
<TABLE>
<CAPTION>
Shares
or
Principal Security Market
Amount Description Value
--------- -------------------------------------------------------- ----------
<C> <S> <C>
Common Stocks, continued:
Computer Software, continued:
7,500 Computer Sciences Corp.(b).............................. $ 593,438
10,500 Microsoft Corp.(b)...................................... 1,115,625
4,500 Oracle Corp.(b)......................................... 351,281
----------
5,470,343
----------
Computers (5.1%):
15,000 Compaq Computer Corp. .................................. 399,375
5,000 Dell Computer Corp.(b).................................. 269,688
12,000 Electronic Data Systems Corp. .......................... 770,250
1,550 EMC Corp.(b)............................................ 193,750
18,000 Hewlett-Packard Co. .................................... 2,386,124
24,000 IBM Corp.(c)............................................ 2,831,999
6,000 Sun Microsystems, Inc.(b)............................... 562,219
----------
7,413,405
----------
Containers (0.2%):
10,000 Sonoco Products Co. .................................... 235,000
----------
Cosmetics/Personal Care (0.3%):
8,400 Procter & Gamble Co. ................................... 472,500
----------
Diversified Products (1.1%):
10,500 E.I. duPont de Nemours Co. ............................. 555,188
7,000 General Electric Co. ................................... 1,086,312
----------
1,641,500
----------
Electrical Equipment (0.6%):
15,000 Emerson Electric........................................ 793,125
2,700 PG & E Corp. ........................................... 56,700
----------
849,825
----------
Electronic Components (2.8%):
24,000 Avnet, Inc. ............................................ 1,512,000
20,300 Intel Corp. ............................................ 2,678,330
----------
4,190,330
----------
Electronic Components--Semiconductors (0.8%):
7,000 Applied Materials, Inc.(b).............................. 659,750
3,700 Texas Instruments, Inc. ................................ 592,000
----------
1,251,750
----------
Electronic Instruments (1.3%):
35,000 Tektronix, Inc. ........................................ 1,960,000
----------
</TABLE>
Continued
-58-
[LOGO OF BB&T FUNDS]
<PAGE>
BALANCED FUND
Schedule of Portfolio Investments, Continued
March 31, 2000
(Unaudited)
<TABLE>
<CAPTION>
Shares
or
Principal Security Market
Amount Description Value
--------- ------------------------------------------------------ ------------
<C> <S> <C>
Common Stocks, continued:
Engineering (0.3%):
14,000 Fluor Corp. .......................................... $ 434,000
------------
Financial Services (0.8%):
2,600 American Express Co. ................................. 387,238
10,000 Associates First Capital Corp. ....................... 214,375
10,000 Fannie Mae............................................ 564,375
800 Morgan Stanley Dean Witter............................ 65,250
------------
1,231,238
------------
Food & Related (1.9%):
26,000 Dean Foods Co. ....................................... 695,500
39,500 Sara Lee Corp. ....................................... 711,000
50,000 SUPERVALU, Inc. ...................................... 946,875
20,000 Universal Foods Corp. ................................ 427,500
------------
2,780,875
------------
Forest & Paper Products (0.6%):
15,000 Weyerhaeuser Co. ..................................... 855,000
------------
Health Care (0.3%):
20,000 Columbia HCA Healthcare Corp. ........................ 506,250
------------
Household--Major Appliances (0.8%):
21,100 Whirlpool Corp. ...................................... 1,236,988
------------
Household Products/Wares (0.5%):
15,000 Unilever N.V. ........................................ 721,875
------------
Insurance (4.8%):
15,000 Aetna Services, Inc. ................................. 835,313
40,000 Allstate Corp. ....................................... 952,500
10,000 American General Corp. ............................... 561,250
5,000 American International Group, Inc. ................... 547,500
20,000 Cigna Corp. .......................................... 1,514,999
16,000 Lincoln National Corp. ............................... 536,000
20,000 SAFECO Corp. ......................................... 531,250
25,000 St. Paul Cos., Inc. .................................. 853,125
25,000 Torchmark Corp. ...................................... 578,125
------------
6,910,062
------------
Internet Services (0.2%):
5,000 America Online, Inc.(b)............................... 336,250
------------
</TABLE>
<TABLE>
<CAPTION>
Shares
or
Principal Security Market
Amount Description Value
--------- ------------------------------------------------------ ------------
<C> <S> <C>
Common Stocks, continued:
Machinery & Equipment (1.0%):
10,000 Caterpillar, Inc. .................................... $ 394,375
26,000 Ingersoll-Rand Co. ................................... 1,150,500
------------
1,544,875
------------
Manufacturing (1.6%):
7,000 Eastman Kodak Co. .................................... 380,188
26,000 Honeywell International Inc. ......................... 1,369,874
5,000 Minnesota Mining & Manufacturing...................... 442,813
2,500 Tyco International Ltd. .............................. 124,688
------------
2,317,563
------------
Media (0.6%):
10,000 Gannett Co., Inc. .................................... 703,750
2,700 Mediaone Group, Inc.(b)............................... 218,700
------------
922,450
------------
Medical Equipment & Supplies (1.5%):
10,000 Bausch & Lomb......................................... 521,875
18,000 Johnson & Johnson..................................... 1,261,125
15,000 Mallinckrodt, Inc. ................................... 431,250
------------
2,214,250
------------
Multimedia (0.5%):
1,000 CBS Corp.(b).......................................... 56,625
12,000 The Disney Walt Co. .................................. 496,500
2,500 Time Warner, Inc. .................................... 250,000
------------
803,125
------------
Office Equipment & Services (0.5%):
30,000 Xerox Corp. .......................................... 780,000
------------
Petroleum (2.6%):
15,000 Exxon Mobil Corp. .................................... 1,167,188
22,300 Phillips Petroleum Co. ............................... 1,031,375
10,000 Schlumberger Ltd. .................................... 765,000
17,800 Texaco, Inc. ......................................... 954,525
------------
3,918,088
------------
Petroleum--International (0.8%):
21,200 Royal Dutch Petroleum Co.--NY Shares.................. 1,220,325
------------
</TABLE>
Continued
-59-
[LOGO OF BB&T FUNDS]
<PAGE>
BALANCED FUND
Schedule of Portfolio Investments, Continued
March 31, 2000
(Unaudited)
<TABLE>
<CAPTION>
Shares
or
Principal Security Market
Amount Description Value
--------- ------------------------------------------------------ ------------
<C> <S> <C>
Common Stocks, continued:
Pharmaceuticals (3.4%):
42,200 Abbott Laboratories................................... $ 1,484,913
20,600 Bristol-Myers Squibb Co. ............................. 1,189,650
8,000 Cardinal Health, Inc. ................................ 367,000
2,000 Lilly (Eli) & Co. .................................... 126,000
24,000 Merck & Co., Inc. .................................... 1,490,999
4,000 Pfizer, Inc. ......................................... 146,250
2,400 Warner Lambert Co. ................................... 234,000
------------
5,038,812
------------
Railroad (0.3%):
21,500 CSX Corp. ............................................ 505,250
------------
Restaurants (0.3%):
12,000 McDonalds Corp. ...................................... 450,750
------------
Retail (0.8%):
25,000 May Department Stores Co. ............................ 712,500
8,000 Wal-Mart Stores, Inc. ................................ 444,000
------------
1,156,500
------------
Retail--Food Stores (0.6%):
28,000 Albertson's, Inc. .................................... 868,000
1,600 Kroger Co.(b)......................................... 28,100
------------
896,100
------------
Retail--General Merchandise (0.9%):
17,300 Target Corp. ......................................... 1,293,175
------------
Retail--Specialty Stores (0.3%):
8,000 Home Depot, Inc. ..................................... 516,000
------------
Security Brokers & Dealers (0.5%):
20,000 Edwards (A.G.), Inc. ................................. 800,000
------------
Telecommunication--Equipment (0.9%):
7,500 Lucent Technologies, Inc. ............................ 455,625
4,500 Motorola, Inc. ....................................... 640,687
1,500 Nortel Networks Corp. ................................ 189,000
200 Qualcomm, Inc.(b)..................................... 29,863
------------
1,315,175
------------
Telecommunications (0.1%):
1,200 Sprint Corp. (PCS Group)(b)........................... 78,375
------------
Tobacco (0.5%):
25,000 Philip Morris, Inc. .................................. 528,125
10,000 UST, Inc. ............................................ 156,250
------------
684,375
------------
</TABLE>
<TABLE>
<CAPTION>
Shares
or
Principal Security Market
Amount Description Value
--------- ----------------------------------------------------- ------------
<C> <S> <C>
Common Stocks, continued:
Utilities--Electric (1.0%):
17,000 FPL Group, Inc. ..................................... $ 783,063
30,000 Scana Corp. ......................................... 736,875
------------
1,519,938
------------
Utilities--Gas & Pipeline (0.6%):
25,000 NICOR, Inc. ......................................... 823,438
------------
Utilities--Telephone (4.8%):
40,100 AT&T Corp. .......................................... 2,255,624
7,500 Bell Atlantic Corp. ................................. 458,438
29,000 BellSouth Corp. ..................................... 1,363,000
1,000 General Telephone Electric Corp. .................... 71,000
2,200 MCI Worldcom, Inc.(b)................................ 99,688
35,000 SBC Communications, Inc. ............................ 1,469,999
20,000 Sprint Corp. ........................................ 1,260,000
------------
6,977,749
------------
Total Common Stocks 87,239,912
------------
Corporate Bonds (7.9%):
Automotive (0.7%):
$1,000,000 Daimlerchrysler NA, 7.40%, 1/20/05................... 997,533
------------
Banks (0.8%):
1,250,000 Bank One Corp., 6.88%, 08/01/06...................... 1,200,065
------------
Beverages (0.8%):
1,000,000 Anheuser-Busch Cos., 9.00%, 12/1/09.................. 1,122,121
------------
Computer Services (0.7%):
1,000,000 Electronic Data Systems, Inc., 7.125%, 10/15/09...... 981,560
------------
Financial Services (2.2%):
1,500,000 Ford Motor Credit, 7.50%, 3/15/05.................... 1,495,124
500,000 General Electric Capital Corp., 7.25, 2/1/05......... 499,940
1,500,000 Sears Roebuck Acceptance, 6.00%, 3/20/03............. 1,437,236
------------
3,432,300
------------
Forest & Paper Products (0.7%):
1,000,000 Weyerhaeuser Co., 7.50%, 3/1/13...................... 1,000,439
------------
</TABLE>
Continued
-60-
[LOGO OF BB&T FUNDS]
<PAGE>
BALANCED FUND
Schedule of Portfolio Investments, Continued
March 31, 2000
(Unaudited)
<TABLE>
<CAPTION>
Shares
or
Principal Security Market
Amount Description Value
--------- ----------------------------------------------------- ------------
<C> <S> <C>
Corporate Bonds, continued:
Manufacturing--Capital Goods (0.7%):
$1,000,000 Honeywell International, 7.50%, 3/1/10............... $ 1,010,794
------------
Retail Stores (0.7%):
1,000,000 Target Corp., 7.50%, 2/15/05......................... 1,007,702
------------
Telecommunications (0.6%):
1,000,000 GTE North, Inc., 6.40%, 2/15/05...................... 954,976
------------
Total Corporate Bonds 11,707,490
------------
Pass-through Mortgage Securities (9.9%):
Federal Home Loan Mortgage Corp. (4.6%):
4,039,681 6.00%, 3/1/13, Pool #E000540......................... 3,845,251
1,271,889 6.00%, 6/1/13, Pool #E00553.......................... 1,210,673
1,875,368 6.00%, 11/1/28, Series C00680........................ 1,707,747
------------
6,763,671
------------
Federal National Mortgage Assoc. (5.3%):
1,068,870 6.00%, 6/1/03, Pool # 250581......................... 1,015,427
4,454,316 6.50%, 4/1/14, Pool # 323654......................... 4,291,422
636,677 7.00%, 4/1/24, Pool # 250005......................... 617,577
1,957,809 7.50%, 10/1/29, Pool # 252806........................ 1,925,368
------------
7,849,794
------------
Total Pass-through Mortgage Securities 14,613,465
------------
U.S. Government Agencies (13.2%):
Federal Home Loan Bank (3.4%):
1,500,000 5.84%, 7/14/08....................................... 1,373,391
4,000,000 5.80%, 9/2/08........................................ 3,647,332
------------
5,020,723
------------
Federal Home Loan Mortgage Corp. (5.0%):
3,000,000 5.00%, 1/15/04....................................... 2,792,892
3,000,000 5.75%, 4/15/08....................................... 2,738,697
2,000,000 6.25%, 10/15/02...................................... 1,963,484
------------
7,495,073
------------
</TABLE>
<TABLE>
<CAPTION>
Shares
or
Principal Security Market
Amount Description Value
--------- --------------------------------------------------- ------------
<C> <S> <C>
U.S. Government Agencies, continued:
Federal National Mortgage Assoc. (4.8%):
$1,000,000 5.63%, 5/14/04..................................... $ 948,032
4,000,000 6.00%, 5/15/08..................................... 3,708,416
2,500,000 6.625%, 9/15/09.................................... 2,404,213
------------
7,060,661
------------
Total U.S. Government Agencies 19,576,457
------------
U.S. Treasury Bonds (3.7%):
5,000,000 7.25%, 5/15/16(c).................................. 5,526,565
------------
Total U.S. Treasury Bonds 5,526,565
------------
U.S. Treasury Notes (5.6%):
3,000,000 7.88%, 11/15/04(c)................................. 3,177,189
2,000,000 7.50%, 2/15/05(c).................................. 2,095,000
3,000,000 6.63%, 5/15/07..................................... 3,058,125
------------
Total U.S. Treasury Notes 8,330,314
------------
Investment Companies (1.0%):
1,473,890 Federated Government Obligation Fund............... 1,473,890
------------
Total Investment Companies 1,473,890
------------
Short Term Securities Purchased with Securities Lending
Collateral (8.9%):
Investment Companies (4.8%):
7,168,750 AIM Liquid Asset Money Market Fund ................ 7,168,750
------------
Repurchase Agreements (4.1%):
6,000,000 Lehman Brothers Triparty Agreement, 6.425%, 4/3/00,
(See Significant Accounting Policies).............. 6,000,000
------------
Total Short Term Securities Purchased with Securities Lending
Collateral 13,168,750
------------
Total Investments
(Cost $146,446,629)(a)--109.2% 161,636,843
Liabilities in excess of other assets--(9.2)% (13,551,701)
------------
TOTAL NET ASSETS--100.0% $148,085,142
============
</TABLE>
----
(a) Cost for federal income tax purposes differs from
value by net unrealized appreciation as follows:
<TABLE>
<S> <C>
Unrealized
appreciation............ $22,714,616
Unrealized
depreciation............ (7,524,402)
-----------
Net unrealized
appreciation............ $15,190,214
===========
</TABLE>
(b) Represents non-income producing securities.
(c) All or part of this security has been loaned at
March 31, 2000.
See notes to financial statements
-61-
[LOGO OF BB&T FUNDS]
<PAGE>
LARGE COMPANY GROWTH FUND
Schedule of Portfolio Investments
March 31, 2000
(Unaudited)
<TABLE>
<CAPTION>
Security Market
Shares Description Value
------ --------------------------------------------------------- ------------
<C> <S> <C>
Common Stocks (93.9%):
Advertising (1.1%):
20,300 Omnicom Group(c)......................................... $ 1,896,781
------------
Aluminum (0.7%):
16,800 Alcoa, Inc. ............................................. 1,180,200
------------
Audio Products (0.3%):
5,000 Gemstar International Group Ltd.(b)...................... 430,000
------------
Banking & Finance (0.6%):
20,300 Bank Of America Corp. ................................... 1,064,481
------------
Banks (0.4%):
30,450 Firstar Corp. ........................................... 698,447
------------
Beverages (0.4%):
15,250 Coca-Cola Co. ........................................... 715,797
------------
Biotechnology (2.8%):
78,000 Amgen, Inc.(b)........................................... 4,787,250
------------
Commercial Services (1.7%):
53,600 Paychex, Inc. ........................................... 2,807,300
------------
Computer Networking (4.2%):
93,100 Cisco Systems, Inc.(b)................................... 7,197,794
------------
Computer Software (9.6%):
50,750 Compuware Corp.(b)....................................... 1,068,922
68,750 Microsoft Corp.(b)....................................... 7,304,687
68,700 Oracle Corp.(b).......................................... 5,362,893
50,750 Parametric Technology Corp.(b)........................... 1,068,922
20,300 Rational Software Corp.(b)............................... 1,552,950
------------
16,358,374
------------
Computers (5.6%):
20,450 EMC Corp.(b)............................................. 2,556,250
20,000 IBM Corp. ............................................... 2,360,000
49,550 Sun Microsystems, Inc.(b)................................ 4,642,990
------------
9,559,240
------------
Cosmetics/Personal Care (0.7%):
20,300 Procter & Gamble Co. .................................... 1,141,875
------------
Diversified Products (6.1%):
40,600 Colgate-Palmolive Co. ................................... 2,288,825
19,300 E.I. duPont de Nemours Co. .............................. 1,020,488
45,400 General Electric Co. .................................... 7,045,512
------------
10,354,825
------------
</TABLE>
<TABLE>
<CAPTION>
Security Market
Shares Description Value
------ --------------------------------------------------------- ------------
<C> <S> <C>
Common Stocks, continued:
Electronic Components (8.3%):
45,700 Intel Corp.(c) .......................................... $ 6,029,544
40,300 Jabil Circuit(b)......................................... 1,742,975
40,300 KLA-Tencor Corp.(b)...................................... 3,395,275
70,900 Solectron Corp.(b)....................................... 2,840,431
------------
14,008,225
------------
Electronic Components--Semiconductors (4.8%):
20,000 Altera Corp.(b).......................................... 1,785,000
36,600 Applied Materials, Inc.(b)............................... 3,449,550
19,000 Teradyne, Inc.(b)........................................ 1,562,750
15,250 Xilinx, Inc.(b).......................................... 1,262,891
------------
8,060,191
------------
Electronics (3.7%):
15,000 Kemet Corp.(b)........................................... 948,750
19,800 Linear Technology Corp. ................................. 1,089,000
50,750 Symbol Technologies, Inc. ............................... 4,177,359
------------
6,215,109
------------
Financial Services (0.8%):
8,650 American Express Co. .................................... 1,288,309
------------
Food & Related (1.4%):
40,600 General Mills, Inc. ..................................... 1,469,213
23,350 Sysco Corp. ............................................. 833,303
------------
2,302,516
------------
Household Products/Wares (0.6%):
20,000 Church & Dwight, Inc. ................................... 343,750
20,300 Clorox Co. .............................................. 659,750
------------
1,003,500
------------
Insurance (0.9%):
13,700 American International Group, Inc. ...................... 1,500,150
------------
Internet Content (0.5%):
5,400 Yahoo!, Inc.(b).......................................... 925,425
------------
Leisure Time Industries (1.2%):
25,000 Harley-Davidson, Inc.(c) ................................ 1,984,375
------------
Media (0.5%):
20,500 Comcast Corp.(c) ........................................ 889,188
------------
Medical--Biotechnology (0.5%):
13,000 Biogen, Inc.(b).......................................... 908,375
------------
</TABLE>
Continued
-62-
[LOGO OF BB&T FUNDS]
<PAGE>
LARGE COMPANY GROWTH FUND
Schedule of Portfolio Investments, Continued
March 31, 2000
(Unaudited)
<TABLE>
<CAPTION>
Security Market
Shares Description Value
------ -------------------------------------------------------- ------------
<C> <S> <C>
Common Stocks, continued:
Medical Equipment & Supplies (0.6%):
15,250 Johnson & Johnson....................................... $ 1,068,453
------------
Medical Instruments (2.0%):
40,600 Medtronic, Inc. ........................................ 2,088,363
19,000 Techne Corp.(b)......................................... 1,311,000
------------
3,399,363
------------
Petroleum (2.0%):
30,300 Enron Corp. ............................................ 2,268,712
13,399 Exxon Mobil Corp. ...................................... 1,042,610
------------
3,311,322
------------
Pharmaceuticals (6.1%):
30,450 Bristol-Myers Squibb Co. ............................... 1,758,488
69,225 Jones Pharma, Inc. ..................................... 2,102,709
41,250 Merck & Co., Inc. ...................................... 2,562,656
105,450 Pfizer, Inc. ........................................... 3,855,516
------------
10,279,369
------------
Retail (4.4%):
20,300 Gap, Inc. .............................................. 1,011,194
70,350 Wal-Mart Stores, Inc. .................................. 3,904,424
101,550 Walgreen Co.(c) ........................................ 2,614,913
------------
7,530,531
------------
Retail--General Merchandise (0.4%):
19,600 BJ'S Wholesale Club, Inc.(b)............................ 757,050
------------
Retail--Specialty Stores (3.4%):
15,250 Best Buy, Inc.(b)....................................... 1,311,500
30,000 CDW Computer Centers, Inc.(b)........................... 2,533,125
30,450 Home Depot, Inc. ....................................... 1,964,025
------------
5,808,650
------------
Telecommunication--Equipment (13.7%):
32,500 Corning, Inc.(c) ....................................... 6,304,999
42,650 Ericsson LM--ADR........................................ 4,001,103
15,000 Lucent Technologies, Inc. .............................. 911,250
20,300 Motorola, Inc. ......................................... 2,890,213
15,700 Nokia Corp.--ADR........................................ 3,410,825
10,000 Qualcomm, Inc.(b)....................................... 1,493,125
</TABLE>
<TABLE>
<CAPTION>
Security Market
Shares Description Value
------ ---------------------------------------------------- ------------
<C> <S> <C>
Common Stocks, continued:
Telecommunication--Equipment, continued:
24,900 Scientific Atlanta, Inc. ........................... $ 1,579,594
45,300 Tellabs, Inc. ...................................... 2,853,192
------------
23,444,301
------------
Telecommunications (1.0%):
25,000 Sprint Corp. (PCS Group)(b)......................... 1,632,813
------------
Utilities--Telephone (2.9%):
25,400 AT&T Corp. ......................................... 1,428,750
34,550 BellSouth Corp. .................................... 1,623,850
18,300 CenturyTel, Inc. ................................... 679,388
27,600 SBC Communications, Inc. ........................... 1,159,200
------------
4,891,188
------------
Total Common Stocks 159,400,767
------------
Depositary Receipts (0.3%):
SPDR (0.3%):
3,500 S & P 500 Depositary Receipt........................ 526,969
------------
Total Depositary Receipts 526,969
------------
Investment Companies (6.7%):
7,319,252 Federated Government Obligation Fund................ 7,319,252
4,018,609 Federated Short Term U.S. Government Fund........... 4,018,609
------------
Total Investment Companies 11,337,861
------------
Short Term Securities Purchased with Securities Lending
Collateral (9.4%):
Investment Companies (9.4%):
15,913,100 AIM Liquid Asset Money Market Fund ................. 15,913,100
------------
Total Short Term Securities Purchased with Securities Lending
Collateral 15,913,100
------------
Total Investments
(Cost $117,857,499)(a)--110.3% 187,178,697
Liabilities in excess of other assets--(10.3)% (17,498,942)
------------
TOTAL NET ASSETS--100.0% $169,679,755
============
</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.................... $72,133,891
Unrealized deprecia-
tion.................... (2,812,693)
-----------
Net unrealized apprecia-
tion.................... $69,321,198
===========
</TABLE>
(b) Represents non-income producing securities.
(c) All or part of this security has been loaned at
March 31, 2000.
ADR--American Depository Receipt.
See notes to financial statements
-63-
[LOGO OF BB&T FUNDS]
<PAGE>
SMALL COMPANY GROWTH FUND
Schedule of Portfolio Investments
March 31, 2000
(Unaudited)
<TABLE>
<CAPTION>
Shares
or
Principal Security Market
Amount Description Value
--------- ------------------------------------------------------ ------------
<C> <S> <C>
Common Stocks (89.3%):
Advertising (0.9%):
44,300 Getty Images, Inc.(b)................................. $ 1,592,031
14,600 Modem Media Poppe Tyson, Inc.(b)...................... 472,675
------------
2,064,706
------------
Aerospace/Defense (1.0%):
48,100 Titan Corp.(b)........................................ 2,453,100
------------
Apparel (0.2%):
24,800 Global Sports, Inc.(b)(c)............................. 461,900
------------
Audio Products (1.5%):
44,200 Polycom, Inc.(b)...................................... 3,500,088
------------
Banks (0.9%):
36,300 Investors Financial Services Corp. ................... 2,137,163
------------
Biotechnology (2.5%):
13,909 Aclara Biosciences, Inc.(b)........................... 548,536
30,300 Digene Corp.(b)....................................... 1,393,800
13,400 Genzyme Transgenics, Inc.(b).......................... 268,000
5,500 Incyte Pharmaceuticals, Inc.(b)....................... 478,500
29,600 Inhale Therapeutic Systems, Inc.(b)(c)................ 2,205,200
5,200 Maxim Pharmaceuticals, Inc.(b)........................ 244,075
14,300 Maxygen, Inc.(b)...................................... 932,181
------------
6,070,292
------------
Commercial Services (0.6%):
20,100 Plexus Corp.(b)....................................... 1,339,163
------------
Computer Services (0.9%):
16,700 Cognizant Technology Solutions Corp.(b)............... 1,043,750
16,500 Factset Research Systems, Inc. ....................... 446,531
8,700 Netegrity, Inc.(b).................................... 595,950
------------
2,086,231
------------
Computer Software (16.4%):
26,900 Actuate Corp.(b)...................................... 1,447,556
56,500 Aspect Development, Inc.(b)........................... 3,637,187
29,400 Aspen Technologies, Inc.(b)........................... 1,187,025
46,900 Bindview Development Corp.(b)......................... 1,456,831
8,500 Cysive, Inc.(b)....................................... 582,250
7,300 Exchange Applications, Inc.(b)........................ 386,330
31,500 Informatica Corp.(b).................................. 2,419,594
2,500 Intertrust Technologies Corp.(b)...................... 106,250
</TABLE>
<TABLE>
<CAPTION>
Shares
or
Principal Security Market
Amount Description Value
--------- ------------------------------------------------------ ------------
<C> <S> <C>
Common Stocks, continued:
Computer Software, continued:
10,000 Macromedia, Inc.(b)................................... $ 903,125
51,000 Manugistics Group, Inc.(b)............................ 2,562,750
55,900 Mercury Interactive Corp.(b).......................... 4,430,074
25,100 Micromuse, Inc.(b).................................... 3,484,194
70,100 Peregrine Systems, Inc.(b)............................ 4,701,080
47,500 Remedy Corp.(b)....................................... 2,000,938
23,000 RSA Security, Inc.(b)................................. 1,191,688
13,100 Seachange International, Inc.(b)...................... 807,288
47,000 Smartforce PLC--ADR(b)................................ 2,156,125
26,700 Transaction Systems Architects, Inc.(b)............... 770,963
13,300 TSI International Software, Ltd.(b)................... 1,104,731
18,675 VERITAS Software Corp.(b)............................. 2,446,425
17,500 Webtrends Corp.(b).................................... 1,260,000
5,800 Witness Systems, Inc.(b).............................. 176,175
------------
39,218,579
------------
Computers (2.2%):
91,300 Advanced Digital Information, Corp.(b)................ 3,127,025
15,656 Emulex Corp.(b)....................................... 1,708,461
10,300 M-Systems Flash Disk Pioneers, Ltd.(b)................ 545,900
------------
5,381,386
------------
Computers-Integrated Systems (0.2%):
19,300 Filenet Corp.(b)...................................... 574,175
------------
Electrical & Electronic (2.7%):
37,500 Calpine Corp.(b)...................................... 3,525,000
32,100 Micrel, Inc.(b)....................................... 3,081,600
------------
6,606,600
------------
Electrical Equipment (1.5%):
32,300 DII Group, Inc.(b).................................... 3,651,919
------------
Electronic Components (6.1%):
14,400 MRV Communications, Inc.(b)........................... 1,319,400
2,600 Power-One, Inc.(b).................................... 156,975
37,300 QLogic Corp.(b)....................................... 5,054,150
30,600 SDL, Inc.(b).......................................... 6,510,150
16,575 Transwitch Corp.(b)................................... 1,593,272
------------
14,633,947
------------
</TABLE>
Continued
-64-
[LOGO OF BB&T FUNDS]
<PAGE>
SMALL COMPANY GROWTH FUND
Schedule of Portfolio Investments, Continued
March 31, 2000
(Unaudited)
<TABLE>
<CAPTION>
Shares
or
Principal Security Market
Amount Description Value
--------- ---------------------------- ------------
<C> <S> <C>
Common Stocks, continued:
Electronic Components--Semiconductors
(7.6%):
21,200 Alpha Industries, Inc.(b)...... $ 2,014,000
34,600 Applied Micro Circuits
Corp.(b)....................... 5,192,162
2,700 Caliper Technologies Corp.(b).. 218,363
8,700 Exar Corp.(b).................. 622,594
45,800 Kopin Corp.(b)................. 3,148,749
46,400 LTX Corp.(b)................... 2,096,700
22,100 Silicon Image, Inc.(b)......... 1,582,913
54,500 Varian Semiconductor
Equipment, Inc.(b)............. 3,467,562
------------
18,343,043
------------
Electronics (2.5%):
31,350 Anadigics, Inc.(b)............. 2,069,100
40,300 Kemet Corp.(b)................. 2,548,975
46,300 Kent Electronics Corp.(b)...... 1,351,381
------------
5,969,456
------------
Entertainment (0.1%):
14,300 Speedway Motorsports, Inc.(b).. 356,606
------------
Health Care (0.1%):
3,000 PolyMedica, Corp.(b)........... 176,250
------------
Instruments--Scientific (0.6%):
40,300 Varian, Inc.(b)................ 1,546,513
------------
Internet Content (6.2%):
8,500 724 Solutions, Inc.(b)......... 1,058,250
6,200 About.Com, Inc.(b)............. 546,375
19,600 Art Technology Group, Inc.(b).. 1,287,475
14,000 Centra Software, Inc.(b)....... 294,000
7,100 Fairmarket, Inc.(b)............ 161,525
7,200 Loudeye Technologies, Inc.(b).. 251,100
17,600 Multex.Com, Inc.(b)............ 653,400
9,400 Navisite, Inc.(b).............. 1,144,450
5,600 Net.Genesis Corp.(b)........... 250,600
1,900 Netpliance, Inc.(b)............ 27,313
2,700 Ondisplay, Inc.(b)............. 223,088
2,000 PC-Tel, Inc.(b)................ 150,500
27,400 Register.com(b)................ 1,904,300
5,900 Retek, Inc.(b)(c)........... 243,006
4,500 Selectica, Inc.(b)............. 397,125
18,400 Softnet Systems, Inc.(b)....... 538,200
24,000 Switchboard, Inc.(b)........... 825,000
2,700 Valueclick, Inc.(b)............ 56,531
3,343 Ventro Corp.(b)................ 189,297
1,800 Versata, Inc.(b)............... 108,338
</TABLE>
<TABLE>
<CAPTION>
Shares
or
Principal Security Market
Amount Description Value
--------- ------------------------------- ------------
<C> <S> <C>
Common Stocks, continued:
Internet Content, continued:
5,400 Viador, Inc.(b)................... $ 263,925
5,800 Vicinity Corp.(b)................. 201,550
44,000 Watchguard Technolgies(b)......... 3,959,999
5,500 Websense, Inc.(b)................. 264,344
------------
14,999,691
------------
Machinery & Equipment (0.7%):
26,892 Helix Technology Corp. ........ 1,615,201
------------
Media (1.8%):
31,200 Pegasus Communications Corp.(b)... 4,391,400
------------
Medical--Biotechnology (0.5%):
9,900 Millennium Pharmaceuticals,
Inc.(b)........................... 1,285,763
------------
Medical Instruments (0.6%):
19,800 Techne Corp.(b)................... 1,366,200
------------
Oil & Gas Exploration Products & Services
(1.6%):
39,700 Cal Dive International, Inc.(b)... 2,014,775
63,000 Rowan Cos., Inc.(b)............... 1,854,563
------------
3,869,338
------------
Petroleum (2.2%):
35,500 Atwood Oceanics, Inc.(b).......... 2,354,093
15,500 Hanover Compressor Co.(b)......... 881,563
73,000 Marine Drilling Co., Inc.(b)...... 2,002,938
16,700 Superior Energy Services,
Inc.(b)........................... 162,825
------------
5,401,419
------------
Pharmaceuticals (7.4%):
14,700 Alkermes, Inc.(b)................. 1,359,750
1,300 Catalytica, Inc.(b)............... 18,931
17,000 Celgene Corp.(b).................. 1,692,563
14,500 Cephalon, Inc.(b)................. 543,750
32,900 Emisphere Technologies, Inc.(b)... 1,706,687
9,300 Intrabiotics Pharmaceuticals,
Inc.(b)........................... 139,500
42,900 Pharmacopeia, Inc.(b)............. 2,102,099
24,400 Pharmacyclics, Inc.(b)............ 1,358,775
11,000 QLT Phototherapeutics, Inc.(b).... 607,750
72,011 Shire Pharmaceuticals Group
PLC(b)............................ 3,690,563
37,800 Titan Pharmaceuticals, Inc.(b).... 1,176,525
16,700 Tularik, Inc.(b).................. 515,613
15,500 United Therapeutics Corp.(b)...... 1,205,125
27,800 Vertex Pharmaceuticals, Inc.(b)... 1,301,388
7,400 Viropharma, Inc.(b)............... 453,713
------------
17,872,732
------------
</TABLE>
Continued
-65-
[LOGO OF BB&T FUNDS]
<PAGE>
SMALL COMPANY GROWTH FUND
Schedule of Portfolio Investments, Continued
March 31, 2000
(Unaudited)
<TABLE>
<CAPTION>
Shares
or
Principal Security Market
Amount Description Value
--------- --------------------------------- ------------
<C> <S> <C>
Common Stocks, continued:
Publishing (0.1%):
8,800 Information Holdings, Inc.(b)....... $ 275,550
------------
Restaurants (0.0%):
1,400 Cheesecake Factory (The)(b)......... 58,275
------------
Retail--Apparel (0.8%):
47,600 Pacific Sunwear of California(b).... 1,832,600
------------
Retail--Internet (0.6%):
18,100 China.Com Corp.(b).................. 1,466,100
------------
Retail--Specialty Stores (0.7%):
30,000 The Talbots, Inc. ............... 1,766,250
------------
Software & Computer Services (2.6%):
44,600 Business Objectives S.A.(b)......... 4,437,700
18,400 Keynote Systems, Inc.(b)............ 1,881,400
------------
6,319,100
------------
Steel (0.1%):
5,800 Lone Star Technologies, Inc.(b)..... 270,425
------------
Telecommunication--Equipment (11.0%):
9,100 Aehter Systems, Inc.(b)............. 1,651,650
23,800 C-Cor.Net Corp.(b).................. 1,166,200
19,900 Ditech Communications Corp.(b)...... 2,110,644
26,200 Harmonic, Inc.(b)(c)................... 2,181,150
3,800 Interwave Communications
International, Ltd.(b).............. 114,475
17,500 Natural Microsystems Corp.(b)....... 1,500,625
93,600 Pinnacle Holdings, Inc.(b).......... 5,171,399
13,550 Powerwave Technologies, Inc.(b)..... 1,693,750
8,000 Proxim, Inc.(b)..................... 957,500
60,500 SBA Communications Corp.(b)......... 2,662,000
34,600 Spectrasite Holdings, Inc.(b)....... 979,613
20,700 Terayon Communication Systems,
Inc.(b)............................. 4,243,499
54,900 Westell Technologies, Inc.(b)....... 1,749,938
------------
26,182,443
------------
</TABLE>
<TABLE>
<CAPTION>
Shares
or
Principal Security Market
Amount Description Value
--------- ------------------------------- ------------
<C> <S> <C>
Common Stocks, continued:
Telecommunications (3.9%):
19,000 Adaptive Broadband Corp.(b)....... $ 1,016,500
4,500 Alamose PCS Holdings, Inc.(b)..... 169,875
18,150 Allegiance Telecom, Inc.(b)....... 1,463,344
22,200 Eloquent, Inc.(b)................. 452,325
24,300 ICG Communications, Inc.(b)....... 877,838
36,200 Mastec, Inc.(b)................... 3,221,799
21,400 Microcell Telecommunications(b)... 949,625
5,800 Net2000 Communications, Inc.(b)... 137,750
22,600 Viatel, Inc.(b)................... 1,134,238
------------
9,423,294
------------
Total Common Stocks 214,966,898
------------
U.S. Government Agencies (9.9%):
Banks (4.7%):
$11,300,000 World Bank, 0.00%, 4/3/00*..... 11,294,303
------------
Federal Home Loan Bank (5.1%):
11,400,000 0.00%, 4/3/00*................. 11,394,442
1,000,000 0.00%, 4/17/00*................ 997,650
------------
12,392,092
------------
Federal National Mortgage Assoc. (0.1%):
250,000 0.00%, 5/4/00*................. 248,708
------------
Total U.S. Government Agencies 23,935,103
------------
Short Term Securities Purchased with
Securities Lending Collateral (2.2%):
Investment Companies (2.2%):
5,265,000 AIM Liquid Asset Money Market
Fund........................... 5,265,000
------------
Total Short Term Securities Purchased with
Securities Lending Collateral 5,265,000
------------
Total Investments
(Cost $163,203,219)(a)--101.4% 244,167,001
Liabilities in excess of other assets--
(1.4%) (3,395,330)
------------
TOTAL NET ASSETS--100.0% $240,771,671
============
</TABLE>
Continued
-66-
[LOGO OF BB&T FUNDS]
<PAGE>
SMALL COMPANY GROWTH FUND
Schedule of Portfolio Investments, Continued
March 31, 2000
(Unaudited)
----
(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.................. $ 93,716,085
Unrealized deprecia-
tion.................. (12,752,303)
------------
Net unrealized appre-
ciation............... $ 80,963,782
============
</TABLE>
(b) Represents non-income producing securities.
(c) All or part of this security has been loaned at
March 31, 2000.
PLC--Public Limited Company
* Represents Discount Note.
At March 31, 2000, the Fund's open long future contracts were as follows:
<TABLE>
<CAPTION>
Number of Opening Face Market
Contracts Contract Type Amount Value
--------- ------------- ----------- -----------
<C> <S> <C> <C>
Standard & Poor's
50 500, 6/16/00 $17,932,500 $18,941,250
</TABLE>
See notes to financial statements
-67-
[LOGO OF BB&T FUNDS]
<PAGE>
INTERNATIONAL EQUITY FUND
Schedule of Portfolio Investments
March 31, 2000
(Unaudited)
<TABLE>
<CAPTION>
Security Market
Shares Description Value
------ ------------------------------------------------------- -------------
<C> <S> <C>
Common Stocks (97.9%):
Brazil (2.5%):
Banks (0.9%):
34,700 Unibanco GDR........................................... $ 1,101,725
-------------
Telecommunications (0.6%):
15,000 Telesudeste Celular Participacoes ADR.................. 749,063
-------------
Utilities--Telephone (1.0%):
50,000 Tele Norte Leste Participacoes ADR(b).................. 1,331,250
-------------
3,182,038
-------------
Chile (0.9%):
Telecommunications (0.9%):
50,000 CIA Telecom Chile ADR.................................. 1,137,500
-------------
Finland (3.1%):
Communication Equipment (3.1%):
19,199 Nokia OYJ.............................................. 4,059,999
-------------
France (10.0%):
Diversified Products (1.9%):
21,696 Vivendi (Ex-Gen Des Eaux).............................. 2,501,621
-------------
Energy (0.0%):
3 ELF Aquitaine.......................................... 537
-------------
Insurance--Multiline (1.2%):
10,578 Axa.................................................... 1,499,042
-------------
Media/Television (1.5%):
9,100 Canal Plus............................................. 2,002,739
-------------
Petroleum (2.1%):
17,997 Total SA-B............................................. 2,695,066
-------------
Pharmaceuticals (1.7%):
39,390 Rhone-Poulenc SA....................................... 2,155,942
-------------
Telecommunications (1.6%):
9,723 Alcatel................................................ 2,133,337
-------------
12,988,284
-------------
Germany (6.4%):
Banks (1.5%):
28,522 Deutsche Bank AG....................................... 1,895,428
-------------
Diversified Products (1.4%):
12,200 Siemens AG............................................. 1,756,917
-------------
Insurance--Property & Casualty (1.8%):
6,166 Allianz AG............................................. 2,510,488
-------------
Software (1.7%):
2,990 Sap AG-Vorzug.......................................... 2,152,944
-------------
8,315,777
-------------
</TABLE>
<TABLE>
<CAPTION>
Security Market
Shares Description Value
------ ----------------------------------------------------- -------------
<C> <S> <C>
Common Stocks, continued:
Great Britain (14.7%):
Banks (1.4%):
69,000 Barclays PLC......................................... $ 1,843,769
-------------
Communication Equipment (1.9%):
132,000 British Telecommunications PLC....................... 2,470,100
-------------
Diversified Products (1.4%):
165,000 Granada Group PLC.................................... 1,767,553
-------------
Multimedia (1.2%):
79,000 Reuters Group PLC.................................... 1,603,086
-------------
Pharmaceuticals (1.6%):
73,000 Glaxo Wellcome PLC................................... 2,088,073
-------------
Telecommunications (5.9%):
99,000 Cable & Wireless PLC................................. 1,858,892
1,018,457 Vodafone Group PLC................................... 5,678,486
-------------
7,537,378
-------------
Utilities--Electric (1.3%):
206,832 Scottish Power PLC................................... 1,677,843
-------------
18,987,802
-------------
Hong Kong (4.0%):
Diversified Products (0.5%):
1,400,000 First Pacific Co..................................... 678,739
-------------
Internet Software (0.3%):
170,000 Pacific Century CyberWorks(b)........................ 397,355
-------------
Publishing (0.3%):
364,000 South China Morning Post............................. 350,607
-------------
Real Estate (1.8%):
85,000 Cheung Kong.......................................... 1,271,752
221,000 Henderson Land Development........................... 1,041,637
-------------
2,313,389
-------------
Telecommunications (1.1%):
216,000 Cable & Wireless HKT Ltd............................. 565,903
96,000 China Telecom(b)..................................... 841,456
-------------
1,407,359
-------------
5,147,449
-------------
India (0.8%):
Banks (0.8%):
44,000 ICICI Ltd. ADR(b).................................... 990,000
-------------
Italy (1.6%):
Telecommunications (1.6%):
174,000 Telecom Italia Mobile SpA............................ 2,134,481
-------------
</TABLE>
Continued
-68-
[LOGO OF BB&T FUNDS]
<PAGE>
INTERNATIONAL EQUITY FUND
Schedule of Portfolio Investments, Continued
March 31, 2000
(Unaudited)
<TABLE>
<CAPTION>
Security Market
Shares Description Value
------ ------------------------------------------------------- -------------
<C> <S> <C>
Common Stocks, continued:
Japan (21.1%):
Automobiles & Trucks (1.7%):
111,000 Fuji Heavy Industries Ltd. ............................ $ 901,506
25,000 Toyota Motor Corp...................................... 1,308,926
-------------
2,210,432
-------------
Banks (3.5%):
70,000 Bank of Tokyo--Mitsubishi Ltd.......................... 1,001,218
94,000 Daiwa Securities Co. Ltd............................... 1,768,830
117,000 Sumitomo Bank.......................................... 1,745,332
-------------
4,515,380
-------------
Chemicals--Petroleum & Inorganic (1.1%):
24,000 Shin-Etsu Chemical Co. Ltd............................. 1,457,807
-------------
Computer Hardware (1.0%):
41,000 Fujitsu Ltd............................................ 1,259,201
-------------
Data Processing (1.6%):
97,000 Ricoh Co. Ltd.......................................... 2,080,631
-------------
Distribution/Wholesale (0.9%):
125,000 Mitsubishi Corp........................................ 1,134,646
-------------
Electrical Equipment (1.7%):
56,000 Matsushita Electric Industrial Co. Ltd................. 1,676,205
3,800 Sony Corp.............................................. 537,220
-------------
2,213,425
-------------
Electronic Components (2.8%):
6,500 Mabuchi Motor Co. Ltd.................................. 690,781
11,000 TDK Corp............................................... 1,499,342
137,000 Toshiba Corp........................................... 1,397,182
-------------
3,587,305
-------------
Household--General Products (0.7%):
111,000 Asahi Glass Co. Ltd.................................... 948,042
-------------
Pharmaceuticals (1.1%):
58,000 Sankyo Co. Ltd......................................... 1,461,804
-------------
Real Estate (0.9%):
122,000 Mitsui Fudosan......................................... 1,165,699
-------------
Telecommunications (2.5%):
103 NTT Corp............................................... 1,636,912
38 NTT Mobile Communications.............................. 1,559,791
-------------
3,196,703
-------------
Tire & Rubber Products (1.0%):
56,000 Bridgestone Corp....................................... 1,236,679
-------------
</TABLE>
<TABLE>
<CAPTION>
Security Market
Shares Description Value
------ ------------------------------------------------------- -------------
<C> <S> <C>
Common Stocks, continued:
Japan, continued:
Toys/Games/Hobbies (0.6%):
4,100 Nintendo Company Ltd................................... $ 721,542
-------------
27,189,296
-------------
Mexico (2.4%):
Banks (0.8%):
700,000 Grupo Financiero Banorte(b)............................ 1,069,495
-------------
Telecommunications (0.5%):
10,200 Telefonos De Mexico ADR................................ 683,400
-------------
Utilities--Telephone (1.1%):
400,000 Carso Global Telecom(b)................................ 1,297,273
-------------
3,050,168
-------------
Netherlands (8.6%):
Banks (1.4%):
34,026 ING Groep N.V.......................................... 1,842,818
-------------
Distribution/Wholesale (1.7%):
84,540 Buhrmann N.V. ......................................... 2,143,696
-------------
Electronic Components (1.9%):
14,818 Koninklijke Philips Electronics........................ 2,489,827
-------------
Media/Television (0.9%):
26,268 United Pan-Europe Communications(b).................... 1,227,351
-------------
Publishing (2.7%):
184,500 Elsevier(b)............................................ 1,871,359
27,257 VNU-Verenigde Nederalndse Uitgeversbedrijven........... 1,605,318
-------------
3,476,677
-------------
11,180,369
-------------
Norway (0.4%):
Internet Content (0.4%):
197,300 StepStone ASA(b)....................................... 509,660
-------------
Portugal (1.3%):
Utilities--Telephone (1.3%):
127,375 Portugal Telecom....................................... 1,633,218
-------------
Singapore (2.0%):
Banks (2.0%):
126,357 DBS Bank Ltd........................................... 1,669,469
153,000 Overseas Chinese Banking Corp.......................... 948,131
-------------
2,617,600
-------------
2,617,600
-------------
</TABLE>
Continued
-69-
[LOGO OF BB&T FUNDS]
<PAGE>
INTERNATIONAL EQUITY FUND
Schedule of Portfolio Investments, Continued
March 31, 2000
(Unaudited)
<TABLE>
<CAPTION>
Security Market
Shares Description Value
------ ----------------------------------------------------- -------------
<C> <S> <C>
Common Stocks, continued:
South Africa (2.1%):
Diversified Products (1.0%):
82,400 Johnnies Industrial Corp. Ltd........................ $ 1,258,969
-------------
Metals--Diversified (0.5%):
30,000 De Beers-Centenary................................... 701,295
-------------
Retail--General Merchandise (0.6%):
1,150,000 Profurn Ltd.......................................... 795,946
-------------
2,756,210
-------------
South Korea (1.8%):
Banks (0.3%):
20,852 Housing & Commercial Bank GDR........................ 405,635
-------------
Electrical Equipment (1.0%):
13,500 Samsung Electronics GDR.............................. 1,274,063
-------------
Telecommunications (0.5%):
15,000 Korea Telecom Corp. ADR(b)........................... 656,250
-------------
2,335,948
-------------
Spain (4.9%):
Banks (1.4%):
162,876 Banco Santander SA................................... 1,750,217
-------------
Communication Equipment (1.6%):
80,250 Telefonica De Espana(b).............................. 2,027,235
-------------
Petroleum (1.9%):
117,662 Repsol SA............................................ 2,579,386
-------------
6,356,838
-------------
Sweden (4.9%):
Appliances (1.3%):
91,000 Electrolux AB........................................ 1,722,048
-------------
Telecommunications (3.6%):
36,800 Ericsson LM.......................................... 3,232,775
71,900 Tele1 Europe Holding AB(b)........................... 1,360,607
-------------
4,593,382
-------------
6,315,430
-------------
</TABLE>
<TABLE>
<CAPTION>
Security Market
Shares Description Value
------ -------------------------------------------------------- ------------
<C> <S> <C>
Common Stocks, continued:
Switzerland (3.1%):
Banks (1.5%):
9,600 Credit Suisse Group--Registered......................... $ 1,911,113
------------
Pharmaceuticals (1.6%):
195 Roche Holding AG--Genusss............................... 2,118,066
------------
4,029,179
------------
Taiwan (1.1%):
Computer Hardware (1.1%):
47,000 Acer Inc. GDR(b)........................................ 655,650
26,000 Synnex Technology GDR................................... 822,250
------------
1,477,900
------------
1,477,900
------------
Thailand (0.2%):
Banks (0.1%):
113,000 Bangkok Bank--FOR REG(b)................................ 194,261
------------
Real Estate (0.1%):
490,000 Golden Land Property(b)................................. 128,299
------------
322,560
------------
Total Common Stocks 126,717,706
------------
Total Investments (Cost $104,520,393)(a)--97.9% 126,717,706
Other assets in excess of liabilities--2.1% 2,704,837
------------
TOTAL NET ASSETS--100.0% $129,422,543
============
</TABLE>
Continued
-70-
[LOGO OF BB&T FUNDS]
<PAGE>
INTERNATIONAL EQUITY FUND
Schedule of Portfolio Investments, Continued
March 31, 2000
(Unaudited)
----
(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.................... $26,546,150
Unrealized deprecia-
tion.................... (4,348,837)
-----------
Net unrealized apprecia-
tion.................... $22,197,313
===========
</TABLE>
(b) Represents non-income producing securities.
AB--Aktiebolag (Swedish Stock Co.)
ADR--American Depository Receipt.
AG--Aktiengesellschaft (German Stock Co.)
GDR--Global Depository Receipt.
NV--Naamloze Vennootschap (Dutch Corp.)
PLC--Public Limited Company.
SA--Societe Anonyme (French Corp.)
SpA--Societa per Azioni (Italian Corp.)
See notes to financial statements
-71-
[LOGO OF BB&T FUNDS]
<PAGE>
CAPITAL MANAGER CONSERVATIVE GROWTH FUND
Schedule of Portfolio Investments
March 31, 2000
(Unaudited)
<TABLE>
<CAPTION>
Security Market
Shares Description Value
------ ----------------------------------------------- -----------
<C> <S> <C>
Investment Companies (100.5%):
506,260 BB&T Balanced Fund............................. $ 6,662,388
158,290 BB&T Growth and Income Stock Fund.............. 2,877,711
494,020 BB&T Intermediate Corporate Bond Fund.......... 4,871,036
365,611 BB&T Intermediate U.S. Government Bond Fund.... 3,506,208
127,347 BB&T International Equity Fund................. 1,857,993
88,727 BB&T Large Company Growth Fund................. 1,409,867
872,919 BB&T Short-Intermediate U.S. Government Income
Fund........................................... 8,318,918
32,250 BB&T Small Company Growth Fund (b)................ 1,296,777
1,517,787 BB&T U.S. Treasury Money Market Fund........... 1,517,787
-----------
Total Investment Companies 32,318,685
-----------
Total Investments
(Cost $31,823,618) (a)--100.5% 32,318,685
Liabilities in excess of other assets--(0.5)% (176,684)
-----------
TOTAL NET ASSETS--100.0% $32,142,001
===========
</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............ $1,502,987
Unrealized
depreciation............ (1,007,920)
----------
Net unrealized
appreciation............ $ 495,067
==========
</TABLE>
(b) Represents non-income producing securities.
See notes to financial statements
-72-
[LOGO OF BB&T FUNDS]
<PAGE>
CAPITAL MANAGER MODERATE GROWTH FUND
Schedule of Portfolio Investments
March 31, 2000
(Unaudited)
<TABLE>
<CAPTION>
Security Market
Shares Description Value
------ ---------------------------------------------- -----------
<C> <S> <C>
Investment Companies (100.4%):
316,697 BB&T Balanced Fund............................ $ 4,167,729
364,545 BB&T Growth and Income Stock Fund............. 6,627,426
319,627 BB&T Intermediate Corporate Bond Fund......... 3,151,526
239,603 BB&T Intermediate U.S. Government Bond Fund... 2,297,796
204,293 BB&T International Equity Fund................ 2,980,632
213,450 BB&T Large Company Growth Fund................ 3,391,725
567,804 BB&T Short-Intermediate U.S. Government Income
Fund.......................................... 5,411,169
43,421 BB&T Small Company Growth Fund(b)................ 1,745,957
1,045,120 BB&T U.S. Treasury Money Market Fund.......... 1,045,120
-----------
Total Investment Companies 30,819,080
-----------
Total Investments
(Cost $29,154,159)(a)--100.4% 30,819,080
Liabilities in excess of other assets--(0.4)% (128,710)
-----------
TOTAL NET ASSETS--100.0% $30,690,370
===========
</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.. $2,625,376
Unrealized depreciation.. (960,455)
----------
Net unrealized
appreciation............. $1,664,921
==========
</TABLE>
(b) Represents non-income producing securities.
See notes to financial statements
-73-
[LOGO OF BB&T FUNDS]
<PAGE>
CAPITAL MANAGER GROWTH FUND
Schedule of Portfolio Investments
March 31, 2000
(Unaudited)
<TABLE>
<CAPTION>
Security Market
Shares Description Value
------ ----------------------------------------------- -----------
<C> <S> <C>
Investment Companies (100.3%):
116,093 BB&T Balanced Fund............................. $ 1,527,785
515,983 BB&T Growth and Income Stock Fund.............. 9,380,575
193,174 BB&T Intermediate Corporate Bond Fund.......... 1,904,700
166,088 BB&T Intermediate U.S. Government Bond Fund.... 1,592,780
233,603 BB&T International Equity Fund................. 3,408,261
315,708 BB&T Large Company Growth Fund................. 5,016,608
364,510 BB&T Short-Intermediate U.S. Government Income
Fund........................................... 3,473,779
53,246 BB&T Small Company Growth Fund (b)................ 2,141,024
1,116,342 BB&T U.S. Treasury Money Market Fund........... 1,116,342
-----------
Total Investment Companies 29,561,854
-----------
Total Investments
(Cost $27,104,880) (a)--100.3% 29,561,854
Liabilities in excess of other assets--(0.3)% (84,025)
-----------
TOTAL NET ASSETS--100.0% $29,477,829
===========
</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.. $3,444,371
Unrealized depreciation.. (987,397)
----------
Net unrealized
appreciation............. $2,456,974
==========
</TABLE>
(b) Represents non-income producing securities.
See notes to financial statements
-74-
[LOGO OF BB&T FUNDS]
<PAGE>
Notes to Financial Statements
March 31, 2000
(Unaudited)
1.Organization:
The BB&T Funds ("The Funds") 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 Funds are authorized to issue an unlimited number of shares without par
value. The Funds offer 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 Intermediate Corporate
Bond Fund, the North Carolina Intermediate Tax-Free Fund, the South Carolina
Intermediate Tax-Free Fund, the Virginia 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 Intermediate Corporate 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 Funds 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 Funds.
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
Continued
-75-
[LOGO OF BB&T FUNDS]
<PAGE>
Notes to Financial Statements, Continued
March 31, 2000
(Unaudited)
and the Intermediate U.S. Government Bond Fund seek current income consistent
with the preservation of capital through investment in obligations issued or
guaranteed by the U.S. Government or its agencies or instrumentalities. The
Intermediate Corporate Bond Fund seeks current income consistent with the
preservation of capital through investment in a diversified portfolio of
corporate bonds and securities issued or guaranteed by the U.S. Government or
its agencies or instrumentalities. The North Carolina Intermediate Tax-Free
Fund, South Carolina Intermediate Tax-Free Fund and Virginia Intermediate
Tax-Free Fund seek to produce a high level of current interest income that is
exempt from both federal and North Carolina, South Carolina and Virginia
state income tax, respectively. The Growth and Income Stock Fund seeks
capital growth, current income or both, primarily through investments in
stocks. The Balanced Fund seeks long-term capital growth and current income
through investment in a broadly diversified portfolio of securities,
including common stocks, preferred stocks and bonds. 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 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 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
Funds which invest primarily in equity securities.
2.Significant Accounting Policies:
The following is a summary of significant accounting policies followed by the
Funds 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 variable net asset value funds 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.
Continued
-76-
[LOGO OF BB&T FUNDS]
<PAGE>
Notes to Financial Statements, Continued
March 31, 2000
(Unaudited)
Foreign Currency Translation:
The market value of investment securities and 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
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 isolates 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.
Reported net 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
-77-
[LOGO OF BB&T FUNDS]
<PAGE>
Notes to Financial Statements, Continued
March 31, 2000
(Unaudited)
Futures Contracts:
The Funds (except for the U.S. Treasury Money Market Fund) may engage in
transactions in financial futures contracts in order to manage the risk of
unanticipated changes in the market values of securities held in the
portfolio, or which it intends to purchase. Such transactions may be
considered trading activity under generally accepted accounting principles.
The expectation is that any gain or loss on such transactions will be
substantially offset by any gain or loss on the securities in the underlying
portfolio or on those which are being considered for purchase. This
investment involves, to varying degrees, elements of market risk and risks in
excess of the amount recognized in the Statement of Assets and Liabilities.
The face or contract amounts reflect the extent of the involvement the Funds
have in the particular classes of instruments. Risks include an imperfect
correlation between the movements in the price of the instruments and the
price of the underlying securities and interest rates. Risks may also arise
if there is an illiquid secondary market for the instruments or due to the
inability of counterparties to perform under the terms of the contract.
Cash or securities are deposited with brokers in order to maintain a
position. Subsequent payments made or received daily by the Fund based on the
change in the market value of the position are recorded as realized gain or
loss.
Futures contracts are valued at the settlement price established each day by
the board of trade or exchange on which they are traded.
To the extent that the Fund enters into futures contracts on an index or
group of securities, the Fund exposes itself to an indeterminate liability
and will be required to pay or receive a sum of money measured by the change
in the market value of the index or group of securities. Upon entering into a
futures contract, the Fund is required to deposit either cash or securities
in an amount ("initial margin") equal to a certain percentage of the contract
value with a broker. Subsequent payments ("variation margin") equal to
changes in the daily settlement price or last sale on the exchanges where
they trade are paid or received each day and are recorded as a gain or loss
on futures contracts.
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.
Continued
-78-
[LOGO OF BB&T FUNDS]
<PAGE>
Notes to Financial Statements, Continued
March 31, 2000
(Unaudited)
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, 2000.
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, South Carolina Intermediate Tax-Free Fund and the
Virginia Intermediate Tax-Free Fund may lend up to 33 1/3% of its 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 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.
Continued
-79-
[LOGO OF BB&T FUNDS]
<PAGE>
Notes to Financial Statements, Continued
March 31, 2000
(Unaudited)
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 of
March 31, 2000, the following Funds had securities with the following market
values on loan:
<TABLE>
<CAPTION>
Market Value Market Value
of of Loaned
Collateral Securities
------------ ------------
<S> <C> <C>
U.S. Treasury Money Market Fund................... $ 60,348,750 $ 59,401,480
Short-Intermediate U.S. Government Income Fund.... 43,533,750 42,846,620
Intermediate U.S. Government Bond Fund............ 41,730,000 41,434,910
Growth and Income Stock Fund...................... 123,701,700 120,371,069
Balanced Fund..................................... 13,168,750 12,933,080
Large Company Growth Fund......................... 15,913,100 15,983,944
Small Company Growth Fund......................... 5,265,000 4,958,519
</TABLE>
The Fund received cash collateral for securities loaned. This cash was
invested in commercial paper, variable rate notes, investment companies and
repurchase agreements at March 31, 2000.
As disclosed in the schedules of portfolio investments, the following Funds
invested cash collateral in a Lehman Brothers Tri-Party Repurchase Agreement
with interest rate of 6.425% and a maturity date of 4/3/00 which was
collateralized by the following securities:
<TABLE>
<S> <C> <C>
Short-Intermediate U.S. Government Income Fund
<CAPTION>
Market
Principal Description Value
--------- ----------- -----------
<S> <C> <C>
$9,000,000 INTL Securitization Corp., 5.97%, 4/20/00 $ 9,000,000
1,390,000 ASAP Funding LTD, 0.00%, 5/17/00 1,390,000
830,000 Madison Funding Corp., 5.95%, 4/17/00 830,000
Intermediate U.S. Government Bond Fund
<CAPTION>
Market
Principal Description Value
--------- ----------- -----------
<S> <C> <C>
$3,820,000 Madison Funding Corp., 5.95%, 4/17/00 $ 3,820,000
2,300,000 Williams Company, 6.48%, 5/5/00 2,300,000
Growth and Income Stock Fund
<CAPTION>
Market
Principal Description Value
--------- ----------- -----------
<S> <C> <C>
$11,360,000 Oesterreichische Nationalbank, 0.00%, 9/14/00 $11,360,000
11,080,000 ASAP Funding LTD, 0.00%, 5/17/00 11,080,000
</TABLE>
Continued
-80-
[LOGO OF BB&T FUNDS]
<PAGE>
Notes to Financial Statements, Continued
March 31, 2000
(Unaudited)
<TABLE>
<C> <S> <C>
Balanced Fund
<CAPTION>
Principal Description Market Value
--------- ----------- ------------
<C> <S> <C>
$6,120,000 ASAP Funding LTD, 0.00%, 5/17/00 $6,120,000
</TABLE>
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 Intermediate Corporate Bond Fund, the North Carolina
Intermediate Tax-Free Fund, the South Carolina Intermediate Tax-Free Fund and
the Virginia 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 amount 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 policy of the Funds to qualify or continue to qualify as a
regulated investment company by complying with the provisions available to
certain investment companies, as defined in applicable sections of the
Internal Revenue Code, and to make distributions of net investment income and
net realized capital gains sufficient to relieve it from all, or
substantially all, federal income taxes.
Other:
Expenses that are directly related to one of the Funds are charged directly
to that Fund. Other operating expenses for the Funds are prorated to the
Funds on the basis of relative net assets. All expenses in connection with
the Funds' organization and registration under the 1940 Act and the
Securities Act of 1933 (with the exception of the Intermediate Corporate Bond
Fund and the Virginia Intermediate Tax-Free Fund) 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.
Continued
-81-
[LOGO OF BB&T FUNDS]
<PAGE>
Notes to Financial Statements, Continued
March 31, 2000
(Unaudited)
On June 30, 1998, the Funds adopted Statement of Position (SOP) 98-5,
"Reporting on the Costs of Start-Up Activities." Under the provisions of SOP
98-5, costs associated with organizing a fund which commences operating
subsequent to June 30, 1998, must be expensed as incurred and may not be
amortized over future periods. Accordingly, costs incurred in connection with
the organization of the Intermediate Corporate Bond Fund and the Virginia
Intermediate Tax-Free Fund were paid by BISYS Fund Services.
3.Purchases and Sales of Securities:
Purchases and sales of securities (excluding short-term securities) for the
period ended March 31, 2000 are as follows:
<TABLE>
<CAPTION>
Purchases Sales
------------ ------------
<S> <C> <C>
Short-Intermediate U.S. Government Income Fund... $113,957,920 $ 83,923,458
Intermediate U.S. Government Bond Fund........... 128,151,172 163,072,199
Intermediate Corporate Bond Fund (a)............. 128,070,240 57,477,200
North Carolina Intermediate Tax-Free Fund........ 39,970,972 36,991,750
South Carolina Intermediate Tax-Free Fund........ 9,364,856 10,423,531
Virginia Intermediate Tax-Free Fund.............. 33,648,926 34,162,053
Growth and Income Stock Fund..................... 58,823,321 90,452,655
Balanced Fund.................................... 52,091,293 61,428,329
Large Company Growth Fund........................ 67,157,202 55,497,053
Small Company Growth Fund........................ 169,584,870 169,795,982
International Equity Fund........................ 107,289,015 98,789,119
Capital Manager Conservative Growth Fund......... 6,749,700 8,607,000
Capital Manager Moderate Growth Fund............. 8,228,000 7,411,000
Captial Manager Growth Fund...................... 8,734,000 6,551,000
</TABLE>
----
(a) For the period from December 2, 1999 (commencement of operations) to
March 31, 2000.
4.Related Party Transactions:
Investment advisory services are provided to the Funds 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 Funds' 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.
Continued
-82-
[LOGO OF BB&T FUNDS]
<PAGE>
Notes to Financial Statements, Continued
March 31, 2000
(Unaudited)
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 Funds' Board of Trustees 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 Funds' 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 period
ended March 31, 2000, BISYS received $2,015,714 from commissions earned on
sales of shares of the Funds' variable net asset value funds, of which
$586,975 was allowed to affiliated broker/dealers of the Funds.
Continued
-83-
[LOGO OF BB&T FUNDS]
<PAGE>
Notes to Financial Statements, Continued
March 31, 2000
(Unaudited)
BB&T, BISYS, and BISYS Ohio may voluntarily reduce or reimburse fees to
assist the Funds in maintaining competitive expense ratios.
Information regarding these transactions is as follows for the period ended
March 31, 2000:
<TABLE>
<CAPTION>
Distribution Distribution
Investment Advisory Administration Fees Fees
Fees Fees Class A Class B
--------------------- -------------- ------------ ------------
As a
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 Market
Fund................... .40% $60,849 $18,457 $7,145 $--
U.S. Treasury Money Mar-
ket Fund............... .40% 177,142 -- 54,679 --
Short-Intermediate U.S.
Government
Income Fund............ .60% 92,233 46,117 5,580 --
Intermediate U.S. Gov-
ernment Bond Fund...... .60% 97,408 -- 4,096 --
Intermediate Corporate
Bond Fund (a).......... .60% 83,142 25,845 68 3
North Carolina Interme-
diate Tax-Free Fund.... .60% 42,487 21,243 22,418 --
South Carolina Interme-
diate Tax-Free Fund.... .60% 25,258 12,644 2,025 --
Virginia Intermediate
Tax-Free Fund.......... .60% 39,163 19,582 151 --
Growth and Income Stock
Fund................... .74% 447,282 -- 45,445 --
Balanced Fund........... .74% 162,522 -- 25,687 --
Large Company Growth
Fund................... .74% 138,777 -- 10,519 --
Small Company Growth
Fund................... 1.00% -- -- 24,177 --
International Equity
Fund................... 1.00% -- -- 3,019 --
Capital Manager Conser-
vative Growth Fund..... .25% 33,187 74,670 520 --
Capital Manager Moderate
Growth Fund............ .25% 29,992 67,482 1,814 --
Captial Manager Growth
Fund................... .25% 27,377 61,598 1,540 --
</TABLE>
----
(a) For the period December 2, 1999 (commencement of operations) to March 31,
2000.
5.Concentration of Credit Risk
The North Carolina Intermediate Tax-Free Fund, the South Carolina
Intermediate Tax-Free Fund and the Virginia Intermediate Tax-Free Fund invest
primarily in debt instruments of municipal issuers in the respective states.
The issuers' abilities to meet their obligations may be affected by economic
developments in a specific state or region.
Continued
-84-
[LOGO OF BB&T FUNDS]
<PAGE>
Notes to Financial Statements, Continued
March 31, 2000
(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,
2000 1999 2000 1999
------------ ------------- ------------- -------------
<S> <C> <C> <C> <C>
CAPITAL TRANSACTIONS:
Class A Shares:
Proceeds from shares
issued................. $10,079,189 $ 8,840,718 $ 168,759,847 $ 126,910,127
Dividends reinvested... 117,207 144,220 953,241 1,741,054
Cost of shares
redeemed............... (4,675,998) (6,852,933) (166,513,840) (127,887,932)
----------- ------------- ------------- -------------
Change in net assets
from Class A Share
transactions........... $ 5,520,398 $ 2,132,005 $ 3,199,248 $ 763,249
=========== ============= ============= =============
Class B Shares:
Proceeds from shares
issued................. $24,419,561 $ 14,771,996 $ 9,046,284 $ 2,908,678
Dividends reinvested... 26,367 9,984 23,757 44,123
Cost of shares
redeemed............... (16,048,409) (5,690,911) (3,190,767) (1,943,945)
----------- ------------- ------------- -------------
Change in net assets
from Class B Share
transactions........... $ 8,397,519 $ 9,091,069 $ 5,879,274 $ 1,008,856
=========== ============= ============= =============
Trust Shares:
Proceeds from shares
issued................. $76,408,534 $ 148,779,482 $ 300,655,463 $ 458,159,592
Dividends reinvested... -- -- 1,872,842 2,723,204
Cost of shares
redeemed............... (72,817,603) (130,059,657) (274,431,686) (414,094,480)
----------- ------------- ------------- -------------
Change in net assets
from Trust Share
transactions........... $ 3,590,931 $ 18,719,825 $ 28,096,619 $ 46,788,316
=========== ============= ============= =============
SHARE TRANSACTIONS:
Class A Shares:
Issued................. 10,079,189 8,840,718 168,759,847 126,910,127
Reinvested............. 117,207 144,220 953,241 1,741,054
Redeemed............... (4,675,998) (6,852,933) (166,513,840) (127,887,932)
----------- ------------- ------------- -------------
Change in Class A
Shares................. 5,520,398 2,132,005 3,199,248 763,249
=========== ============= ============= =============
Class B Shares:
Issued................. 24,419,561 14,771,996 9,046,284 2,908,678
Reinvested............. 26,367 9,984 23,757 44,123
Redeemed............... (16,048,409) (5,690,911) (3,190,767) (1,943,945)
----------- ------------- ------------- -------------
Change in Class B
Shares................. 8,397,519 9,091,069 5,879,274 1,008,856
=========== ============= ============= =============
Trust Shares:
Issued................. 76,408,534 148,779,482 300,655,463 458,159,592
Reinvested............. -- -- 1,872,842 2,723,204
Redeemed............... (72,817,603) (130,059,657) (274,431,686) (414,094,480)
----------- ------------- ------------- -------------
Change in Trust
Shares................. 3,590,931 18,719,825 28,096,619 46,788,316
=========== ============= ============= =============
</TABLE>
Continued
-85-
[LOGO OF BB&T FUNDS]
<PAGE>
Notes to Financial Statements, Continued
March 31, 2000
(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,
2000 1999 2000 1999
------------ ------------- ------------ -------------
<S> <C> <C> <C> <C>
CAPITAL TRANSACTIONS:
Class A Shares:
Proceeds from shares
issued................. $ 152,882 $ 1,289,374 $ 252,974 $ 1,339,933
Dividends reinvested... 94,339 172,172 77,039 188,814
Cost of shares
redeemed............... (476,126) (1,121,205) (398,110) (2,452,023)
------------ ------------ ------------ ------------
Change in net assets
from Class A Share
transactions........... $ (228,905) $ 340,341 $ (68,097) $ (923,276)
============ ============ ============ ============
Class B Shares:
Proceeds from shares
issued................. -- -- $ 78,126 $ 1,856,430
Dividends reinvested... -- -- 54,624 81,359
Cost of shares
redeemed............... -- -- (476,908) (413,844)
------------ ------------ ------------ ------------
Change in net assets
from Class B Share
transactions........... -- -- $ (344,158) $ 1,523,945
============ ============ ============ ============
Trust Shares:
Proceeds from shares
issued................. $ 43,960,953 $ 52,461,643 $ 37,145,164 $ 90,515,306
Dividends reinvested... 171,124 387,596 1,390,475 3,071,777
Cost of shares
redeemed............... (25,391,077) (36,082,594) (74,199,761) (50,389,065)
------------ ------------ ------------ ------------
Change in net assets
from Trust Share
transactions........... $ 18,741,000 $ 16,766,645 $(35,664,122) $ 43,198,018
============ ============ ============ ============
SHARE TRANSACTIONS:
Class A Shares:
Issued................. 15,992 132,382 26,349 131,719
Reinvested............. 9,849 17,513 8,044 18,588
Redeemed............... (49,744) (115,052) (41,883) (240,944)
------------ ------------ ------------ ------------
Change in Class A
Shares................. (23,903) 34,843 (7,490) (90,637)
============ ============ ============ ============
Class B Shares:
Issued................. -- -- 8,091 186,307
Reinvested............. -- -- 5,723 8,085
Redeemed............... -- -- (50,437) (42,205)
------------ ------------ ------------ ------------
Change in Class B
Shares................. -- -- (36,623) 152,187
============ ============ ============ ============
Trust Shares:
Issued................. 4,588,439 5,339,894 3,887,343 9,053,837
Reinvested............. 17,867 39,422 144,972 303,294
Redeemed............... (2,660,278) (3,669,679) (7,736,024) (4,990,144)
------------ ------------ ------------ ------------
Change in Trust
Shares................. 1,946,028 1,709,637 (3,703,709) 4,366,987
============ ============ ============ ============
</TABLE>
Continued
-86-
[LOGO OF BB&T FUNDS]
<PAGE>
Notes to Financial Statements, Continued
March 31, 2000
(Unaudited)
<TABLE>
<CAPTION>
Intermediate North Carolina
Corporate Intermediate
Bond Fund Tax-Free Bond
------------ ---------------------------
For the For the For the
period ended period ended year ended
March 31, March 31, September 30,
2000 (a) 2000 1999
------------ ------------ -------------
<S> <C> <C> <C>
CAPITAL TRANSACTIONS:
Class A Shares:
Proceeds from shares issued........... $ 188,065 $ 993,145 $ 8,174,924
Dividends reinvested.................. 1,033 233,323 508,644
Cost of shares redeemed............... (1,402) (3,334,630) (5,695,033)
----------- ----------- ------------
Change in net assets from Class A
Share transactions.................... $ 187,696 $(2,108,162) $ 2,988,535
=========== =========== ============
Class B Shares:
Proceeds from shares issued........... $ 40,355 -- --
Dividends reinvested.................. 79 -- --
Cost of shares redeemed............... -- -- --
----------- ----------- ------------
Change in net assets from Class B
Share transactions.................... $ 40,434 -- --
=========== =========== ============
Trust Shares:
Proceeds from shares issued........... $74,120,501 $10,783,816 $ 18,232,656
Dividends reinvested.................. 633,538 -- --
Cost of shares redeemed............... (2,153,976) (6,010,203) (16,923,332)
----------- ----------- ------------
Change in net assets from Trust Share
transactions.......................... $72,600,063 $ 4,773,613 $ 1,309,324
=========== =========== ============
SHARE TRANSACTIONS:
Class A Shares:
Issued................................ 19,160 101,746 797,867
Reinvested............................ 105 23,850 49,458
Redeemed.............................. (142) (341,868) (565,397)
----------- ----------- ------------
Change in Class A Shares.............. 19,123 (216,272) 281,928
=========== =========== ============
Class B Shares:
Issued................................ 4,117 -- --
Reinvested............................ 8 -- --
Redeemed.............................. -- -- --
----------- ----------- ------------
Change in Class B Shares.............. 4,125 -- --
=========== =========== ============
Trust Shares:
Issued................................ 7,461,613 1,101,011 1,790,660
Reinvested............................ 64,612 -- --
Redeemed.............................. (219,586) (614,865) (1,646,273)
----------- ----------- ------------
Change in Trust Shares................ 7,306,639 486,146 144,387
=========== =========== ============
</TABLE>
----
(a) For the period from December 2, 1999 (commencement of operations) through
March 31, 2000.
Continued
-87-
[LOGO OF BB&T FUNDS]
<PAGE>
Notes to Financial Statements, Continued
March 31, 2000
(Unaudited)
<TABLE>
<CAPTION>
South Carolina Virginia
Intermediate Intermediate
Tax-Free Bond Tax-Free Fund
--------------------------- ---------------------------
For the For the For the For the
period ended year ended period ended period ended
March 31, September 30, March 31, September 30,
2000 1999 2000 1999 (a)
------------ ------------- ------------ -------------
<S> <C> <C> <C> <C>
CAPITAL TRANSACTIONS:
Class A Shares:
Proceeds from shares
issued.................. $ 8,899 $ 1,082,689 $ 49,968 $ 75,507
Dividends reinvested.... 20,424 21,108 1,243 219
Cost of shares
redeemed................ (61,997) (190,511) -- --
----------- ----------- ----------- -----------
Change in net assets
from Class A Share
transactions............ $ (32,674) $ 913,286 $ 51,211 $ 75,726
=========== =========== =========== ===========
Trust Shares:
Proceeds from shares
issued.................. $ 942,000 $ 3,179,820 $ 5,998,745 $85,116,364
Dividends reinvested.... -- -- -- --
Cost of shares
redeemed................ (1,392,132) (3,959,304) (6,595,566) (3,000,806)
----------- ----------- ----------- -----------
Change in net assets
from Trust Share
transactions............ $ (450,132) $ (779,484) $ (596,821) $82,115,558
=========== =========== =========== ===========
SHARE TRANSACTIONS:
Class A Shares:
Issued.................. 917 106,752 4,700 6,838
Reinvested.............. 2,109 2,086 116 20
Redeemed................ (6,418) (18,833) -- --
----------- ----------- ----------- -----------
Change in Class A
Shares.................. (3,392) 90,005 4,816 6,858
=========== =========== =========== ===========
Trust Shares:
Issued.................. 98,007 315,919 557,626 7,578,336
Reinvested.............. -- -- -- --
Redeemed................ (144,799) (395,464) (610,931) (271,258)
----------- ----------- ----------- -----------
Change in Trust Shares.. (46,792) (79,545) (53,305) 7,307,078
=========== =========== =========== ===========
</TABLE>
----
(a) For the period from May 17, 1999 (commencement of operations) through
September 30, 1999.
Continued
-88-
[LOGO OF BB&T FUNDS]
<PAGE>
Notes to Financial Statements, Continued
March 31, 2000
(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,
2000 1999 2000 1999
------------ ------------- ------------ -------------
<S> <C> <C> <C> <C>
CAPITAL TRANSACTIONS:
Class A Shares:
Proceeds from shares
issued................. $ 2,362,266 $ 6,320,172 $ 1,452,766 $ 3,507,718
Dividends reinvested... 3,254,386 2,181,851 1,116,032 1,612,593
Cost of shares
redeemed............... (6,374,785) (12,271,770) (3,615,172) (5,876,168)
------------ ------------ ------------ ------------
Change in net assets
from Class A Share
transactions........... $ (758,132) $ (3,769,747) $ (1,046,374) $ (755,857)
============ ============ ============ ============
Class B Shares:
Proceeds from shares
issued................. $ 2,689,167 $ 8,325,365 $ 1,534,820 $ 8,086,591
Dividends reinvested... 3,197,736 1,656,594 1,122,095 1,179,731
Cost of shares
redeemed............... (5,241,991) (5,576,977) (3,568,796) (2,574,249)
------------ ------------ ------------ ------------
Change in net assets
from Class B Share
transactions........... $ 644,912 $ 4,404,982 $ (911,881) $ 6,692,073
============ ============ ============ ============
Trust Shares:
Proceeds from shares
issued................. $ 43,179,776 $ 92,724,798 $ 9,077,330 $ 22,201,143
Dividends reinvested... 13,143,866 9,088,063 5,083,377 6,382,802
Cost of shares
redeemed............... (54,477,866) (93,528,869) (19,349,269) (16,913,945)
------------ ------------ ------------ ------------
Change in net assets
from Trust Share
transactions........... $ 1,845,776 $ 8,283,992 $ (5,188,562) $ 11,670,000
============ ============ ============ ============
SHARE TRANSACTIONS:
Class A Shares:
Issued................. 129,025 305,936 107,375 242,216
Reinvested............. 175,587 107,276 82,967 112,288
Redeemed............... (358,245) (598,229) (273,464) (408,749)
------------ ------------ ------------ ------------
Change in Class A
Shares................. (53,633) (185,017) (83,122) (54,245)
============ ============ ============ ============
Class B Shares:
Issued................. 150,256 405,101 116,393 564,554
Reinvested............. 173,371 81,928 83,885 82,552
Redeemed............... (295,636) (271,160) (275,042) (179,654)
------------ ------------ ------------ ------------
Change in Class B
Shares................. 27,991 215,869 (74,764) 467,452
============ ============ ============ ============
Trust Shares:
Issued................. 2,396,138 4,568,228 684,966 1,547,586
Reinvested............. 707,699 445,664 378,763 445,292
Redeemed............... (3,009,209) (4,521,898) (1,471,819) (1,174,036)
------------ ------------ ------------ ------------
Change in Trust
Shares................. 94,628 491,994 (408,090) 818,842
============ ============ ============ ============
</TABLE>
Continued
-89-
[LOGO OF BB&T FUNDS]
<PAGE>
Notes to Financial Statements, Continued
March 31, 2000
(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,
2000 1999 2000 1999
------------ ------------- ------------- -------------
<S> <C> <C> <C> <C>
CAPITAL TRANSACTIONS:
Class A Shares:
Proceeds from shares
issued................. $ 3,504,402 $ 3,990,667 $ 101,506,726 $ 77,265,660
Dividends reinvested... 375,769 123,138 1,662,844 --
Cost of shares
redeemed............... (518,379) (694,002) (104,208,799) (80,169,893)
------------ ------------ ------------- ------------
Change in net assets
from Class A Share
transactions........... $ 3,361,792 $ 3,419,803 $ (1,039,229) $ (2,904,233)
============ ============ ============= ============
Class B Shares:
Proceeds from shares
issued................. $ 7,118,135 $ 7,867,231 $ 2,896,506 $ 1,586,635
Dividends reinvested... 832,156 275,410 1,380,650 --
Cost of shares
redeemed............... (1,202,946) (998,677) (800,337) (2,571,977)
------------ ------------ ------------- ------------
Change in net assets
from Class B Share
transactions........... $ 6,747,345 $ 7,143,964 $ 3,476,819 $ (985,342)
============ ============ ============= ============
Trust Shares:
Proceeds from shares
issued................. $ 25,629,013 $ 42,112,134 $ 60,996,450 $ 32,958,723
Dividends reinvested... 26,884 61,859 7,205,297 --
Cost of shares
redeemed............... (12,321,148) (16,078,382) (41,569,109) (23,736,534)
------------ ------------ ------------- ------------
Change in net assets
from Trust Share
transactions........... $ 13,334,749 $ 26,095,611 $ 26,632,638 $ 9,222,189
============ ============ ============= ============
SHARE TRANSACTIONS:
Class A Shares:
Issued................. 242,987 342,286 2,989,525 3,592,160
Reinvested............. 27,671 11,626 57,103 --
Redeemed............... (37,133) (61,035) (2,991,500) (3,677,582)
------------ ------------ ------------- ------------
Change in Class A
Shares................. 233,525 292,877 55,128 (85,422)
============ ============ ============= ============
Class B Shares:
Issued................. 505,780 683,822 79,970 77,396
Reinvested............. 62,148 26,129 49,029 --
Redeemed............... (85,111) (86,488) (24,757) (123,241)
------------ ------------ ------------- ------------
Change in Class B
Shares................. 482,817 623,463 104,242 (45,845)
============ ============ ============= ============
Trust Shares:
Issued................. 1,753,116 3,632,275 1,576,740 1,601,445
Reinvested............. 1,974 5,824 243,752 --
Redeemed............... (854,280) (1,371,709) (1,054,370) (1,098,270)
------------ ------------ ------------- ------------
Change in Trust
Shares................. 900,810 2,266,390 766,122 503,175
============ ============ ============= ============
</TABLE>
Continued
-90-
[LOGO OF BB&T FUNDS]
<PAGE>
Notes to Financial Statements, Continued
March 31, 2000
(Unaudited)
<TABLE>
<CAPTION>
Capital Manager
International Conservative Growth
Equity Fund Fund
------------------------ ------------------------
For the For the For the For the
period year ended period year ended
ended September ended September
March 31, 30, March 31, 30,
2000 1999 2000 1999 (a)
----------- ----------- ----------- -----------
<S> <C> <C> <C> <C>
CAPITAL TRANSACTIONS:
Class A Shares:
Proceeds from shares
issued.................... $ 759,844 $ 559,154 $ 15,666 $ 409,402
Dividends reinvested...... 98,756 26,800 19,378 10,103
Cost of shares redeemed... (184,561) (344,011) (289,710) (6,750)
----------- ----------- ----------- -----------
Change in net assets from
Class A Share
transactions.............. $ 674,039 $ 241,943 $ (254,666) $ 412,755
=========== =========== =========== ===========
Class B Shares:
Proceeds from shares
issued.................... $ 986,462 $ 498,182 $ 15,057 $ 112,121
Dividends reinvested...... 122,074 36,730 4,407 902
Cost of shares redeemed... (138,546) (560,459) (1,500) (1,253)
----------- ----------- ----------- -----------
Change in net assets from
Class B Share
transactions.............. $ 969,990 $ (25,547) $ 17,964 $ 111,770
=========== =========== =========== ===========
Trust Shares:
Proceeds from shares
issued.................... $24,208,911 $24,995,842 $ 1,873,372 $10,346,198
Dividends reinvested...... 1,323,102 417,850 374,601 117,555
Cost of shares redeemed... (16,145,031) (17,448,374) (4,123,876) (2,372,370)
----------- ----------- ----------- -----------
Change in net assets from
Trust Share transactions.. $ 9,386,982 $ 7,965,318 $(1,875,903) $ 8,091,383
=========== =========== =========== ===========
SHARE TRANSACTIONS:
Class A Shares:
Issued.................... 53,331 48,478 1,456 39,088
Reinvested................ 7,261 2,462 1,835 963
Redeemed.................. (13,071) (30,905) (27,716) (637)
----------- ----------- ----------- -----------
Change in Class A Shares.. 47,521 20,035 (24,425) 39,414
=========== =========== =========== ===========
Class B Shares:
Issued.................... 68,766 43,393 1,446 10,615
Reinvested................ 9,096 3,408 417 84
Redeemed.................. (9,999) (49,342) (142) (117)
----------- ----------- ----------- -----------
Change in Class B Shares.. 67,863 (2,541) 1,721 10,582
=========== =========== =========== ===========
Trust Shares:
Issued.................... 1,742,090 2,102,842 176,278 978,110
Reinvested................ 96,577 38,139 35,337 11,077
Redeemed.................. (1,178,004) (1,454,123) (388,928) (223,419)
----------- ----------- ----------- -----------
Change in Trust Shares.... 660,663 686,858 (177,313) 765,768
=========== =========== =========== ===========
</TABLE>
----
(a) The Fund commenced offering Class B Shares on January 29, 1999.
Continued
-91-
[LOGO OF BB&T FUNDS]
<PAGE>
Notes to Financial Statements, Continued
March 31, 2000
(Unaudited)
<TABLE>
<CAPTION>
Capital Manager
Moderate Growth Capital Manager
Fund Growth Fund
-------------------------- ------------------------
For the For the
period For the period For the
ended year ended ended year ended
March 31, September 30, March 31, September 30,
2000 1999 (a) 2000 1999 (a)
----------- ------------- --------- -------------
<S> <C> <C> <C> <C>
CAPITAL TRANSACTIONS:
Class A Shares:
Proceeds from shares
issued.................... $ 523,360 $ 666,015 $ 400,509 $ 959,556
Dividends reinvested...... 48,727 67,177 49,907 28,038
Cost of shares redeemed... (861,560) (342,290) (211,567) (310,922)
----------- ---------- --------- ---------
Change in net assets from
Class A Share
transactions.............. $ (289,473) $ 390,902 $ 238,849 $ 676,672
=========== ========== ========= =========
Class B Shares:
Proceeds from shares
issued.................... $ 155,950 $ 196,189 $ 861,998 $ 176,179
Dividends reinvested...... 8,220 1,271 13,743 142
Cost of shares redeemed... -- (5) (4,389) (7,686)
----------- ---------- --------- ---------
Change in net assets from
Class B Share
transactions.............. $ 164,170 $ 197,455 $ 871,352 $ 168,635
=========== ========== ========= =========
Trust Shares:
Proceeds from shares
issued.................... $ 1,675,086 $3,571,247 $ 425,882 $ 300,467
Dividends reinvested...... 153,724 13,704 19,157 2,841
Cost of shares redeemed... (1,727,167) (189,439) (7,312) (65,657)
----------- ---------- --------- ---------
Change in net assets from
Trust Share transactions.. $ 101,643 $3,395,512 $ 437,727 $ 237,651
=========== ========== ========= =========
SHARE TRANSACTIONS:
Class A Shares:
Issued.................... 47,537 62,893 35,525 89,234
Reinvested................ 4,423 6,391 4,405 2,662
Redeemed.................. (78,249) (32,057) (18,304) (28,686)
----------- ---------- --------- ---------
Change in Class A Shares.. (26,289) 37,227 21,626 63,210
=========== ========== ========= =========
Class B Shares:
Issued.................... 14,147 18,381 75,861 15,856
Reinvested................ 745 117 1,211 13
Redeemed.................. -- -- (387) (716)
----------- ---------- --------- ---------
Change in Class B Shares.. 14,892 18,498 76,685 15,153
=========== ========== ========= =========
Trust Shares:
Issued.................... 152,109 331,505 37,197 27,938
Reinvested................ 13,890 1,272 1,690 266
Redeemed.................. (156,991) (17,468) (650) (5,940)
----------- ---------- --------- ---------
Change in Trust Shares.... 9,008 315,309 38,237 22,264
=========== ========== ========= =========
</TABLE>
----
(a) The Fund commenced offering Class B Shares on January 29, 1999.
Continued
-92-
[LOGO OF BB&T FUNDS]
<PAGE>
PRIME MONEY MARKET FUND
Class A Shares
Financial Highlights
<TABLE>
<CAPTION>
For the six For the October 1,
months ended year ended 1997 to
March 31, September 30, September 30,
2000 1999 1998 (a)
------------ ------------- -------------
(Unaudited)
<S> <C> <C> <C>
Net Asset Value, Beginning of
Period............................... $ 1.000 $1.000 $1.000
------- ------ ------
Investment Activities
Net investment income............... 0.024 0.043 0.048
------- ------ ------
Total from Investment Activities... 0.024 0.043 0.048
------- ------ ------
Distributions
Net investment income............... (0.024) (0.043) (0.048)
------- ------ ------
Total Distributions................ (0.024) (0.043) (0.048)
------- ------ ------
Net Asset Value, End of Period....... $ 1.000 $1.000 $1.000
======= ====== ======
Total Return......................... 2.47%(b) 4.42% 4.93%
Ratios/Supplementary Data:
Net Assets, End of Period (000)..... $10,915 $5,395 $3,262
Ratio of expenses to average net
assets.............................. 0.95%(c) 0.80% 0.83%
Ratio of net investment income to
average net assets.................. 4.94%(c) 4.34% 4.83%
Ratio of expenses to average net
assets*............................. 1.41%(c) 1.39% 1.43%
Ratio of net investment income to
average net assets*................. 4.48%(c) 3.75% 4.23%
</TABLE>
----
* During the period, certain fees were voluntarily reduced or reimbursed. If
such 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.
See notes to financial statements
-93-
[LOGO OF BB&T FUNDS]
<PAGE>
PRIME MONEY MARKET FUND
Class B Shares
Financial Highlights
<TABLE>
<CAPTION>
For the six For the September 2,
months ended year ended 1998 to
March 31, September 30, September 30,
2000 1999 1998 (a)
------------ ------------- -------------
(Unaudited)
<S> <C> <C> <C>
Net Asset Value, Beginning of
Period.............................. $ 1.000 $1.000 $1.000
------- ------ ------
Investment Activities
Net investment income.............. 0.021 0.036 0.003
------- ------ ------
Total from Investment Activities.. 0.021 0.036 0.003
------- ------ ------
Distributions
Net investment income.............. (0.021) (0.036) (0.003)
------- ------ ------
Total Distributions............... (0.021) (0.036) (0.003)
------- ------ ------
Net Asset Value, End of Period...... $ 1.000 $1.000 $1.000
======= ====== ======
Total Return (excludes redemption
charge)............................. 2.11%(b) 3.64% 0.32%(b)
Ratios/Supplementary Data:
Net Assets, End of Period (000).... $17,789 $9,391 $ 300
Ratio of expenses to average net
assets............................. 1.65%(c) 1.56% 1.64%(c)
Ratio of net investment income to
average net assets................. 4.23%(c) 3.58% 3.98%(c)
Ratio of expenses to average net
assets*............................ 1.87%(c) 1.89% 1.99%(c)
Ratio of net investment income to
average net assets*................ 4.02%(c) 3.25% 3.63%(c)
</TABLE>
----
* During the period, certain fees were voluntarily reduced or reimbursed. If
such 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.
See notes to financial statements
-94-
[LOGO OF BB&T FUNDS]
<PAGE>
PRIME MONEY MARKET FUND
Trust Shares
Financial Highlights
<TABLE>
<CAPTION>
For the six For the October 1,
months ended year ended 1997 to
March 31, September 30, September 30,
2000 1999 1998 (a)
------------ ------------- -------------
(Unaudited)
<S> <C> <C> <C>
Net Asset Value, Beginning of
Period............................... $ 1.000 $ 1.000 $ 1.000
------- ------- -------
Investment Activities
Net investment income............... 0.026 0.046 0.051
------- ------- -------
Total from Investment Activities... 0.026 0.046 0.051
------- ------- -------
Distributions
Net investment income............... (0.026) (0.046) (0.051)
------- ------- -------
Total Distributions................ (0.026) (0.046) (0.051)
------- ------- -------
Net Asset Value, End of Period....... $ 1.000 $ 1.000 $ 1.000
======= ======= =======
Total Return......................... 2.62%(b) 4.69% 5.23%
Ratios/Supplementary Data:
Net Assets, End of Period (000)..... $60,084 $56,492 $37,769
Ratio of expenses to average net
assets.............................. 0.65%(c) 0.54% 0.55%
Ratio of net investment income to
average net assets.................. 5.20%(c) 4.57% 5.11%
Ratio of expenses to average net
assets*............................. 0.86%(c) 0.88% 0.91%
Ratio of net investment income to
average net assets*................. 4.98%(c) 4.23% 4.75%
</TABLE>
----
* During the period, certain fees were voluntarily reduced or reimbursed. If
such 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.
See notes to financial statements
-95-
[LOGO OF BB&T FUNDS]
<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, -------------------------------------------
2000 1999 1998 1997 1996 1995
------------ ------- ------- ------- ------- -------
(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.. 0.022 0.040 0.046 0.044 0.044 0.047
------- ------- ------- ------- ------- -------
Total from Investment
Activities............ 0.022 0.040 0.046 0.044 0.044 0.047
------- ------- ------- ------- ------- -------
Distributions
Net investment income.. (0.022) (0.040) (0.046) (0.044) (0.044) (0.047)
------- ------- ------- ------- ------- -------
Total Distributions... (0.022) (0.040) (0.046) (0.044) (0.044) (0.047)
------- ------- ------- ------- ------- -------
Net Asset Value, End of
Period.................. $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000
======= ======= ======= ======= ======= =======
Total Return ........... 2.26%(a) 4.08% 4.75% 4.50% 4.49% 4.81%
Ratios/Supplementary
Data:
Net Assets, End of
Period (000)........... $45,440 $42,241 $41,478 $32,541 $27,931 $13,948
Ratio of expenses to
average net assets..... 0.93%(b) 0.84% 0.86% 0.95% 0.99% 0.98%
Ratio of net investment
income to average net
assets................. 4.47%(b) 4.00% 4.65% 4.41% 4.37% 4.81%
Ratio of expenses to
average net assets*.... 1.28%(b) 1.23% 1.26% 1.25% 1.25% 1.24%
Ratio of net investment
income to average net
assets*................ 4.12%(b) 3.61% 4.25% 4.11% 4.11% 4.55%
</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.
See notes to financial statements
-96-
[LOGO OF BB&T FUNDS]
<PAGE>
U.S. TREASURY MONEY MARKET FUND
Class B Shares
Financial Highlights
<TABLE>
<CAPTION>
For the six For the For the For the January 1,
months ended year ended year ended year ended 1996 to
March 31, September 30, September 30, September 30, September 30,
2000 1999 1998 1997 1996 (a)
------------ ------------- ------------- ------------- -------------
(Unaudited)
<S> <C> <C> <C> <C> <C>
Net Asset Value,
Beginning of Period..... $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000
------- ------- ------- ------- -------
Investment Activities
Net investment income.. 0.019 0.033 0.039 0.036 0.025
------- ------- ------- ------- -------
Total from Investment
Activities............ 0.019 0.033 0.039 0.036 0.025
------- ------- ------- ------- -------
Distributions
Net investment income.. (0.019) (0.033) (0.039) (0.036) (0.025)
------- ------- ------- ------- -------
Total Distributions... (0.019) (0.033) (0.039) (0.036) (0.025)
------- ------- ------- ------- -------
Net Asset Value, End of
Period.................. $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000
======= ======= ======= ======= =======
Total Return (excludes
redemption charge)...... 1.90%(b) 3.31% 3.97% 3.67% 2.53%(b)
Ratios/Supplementary
Data:
Net Assets, End of
Period (000)........... $ 8,143 $ 2,264 $ 1,255 $ 1,502 $ 1,305
Ratio of expenses to
average net assets..... 1.64%(c) 1.59% 1.61% 1.75% 1.75%(c)
Ratio of net investment
income to average net
assets................. 3.87%(c) 3.25% 3.90% 3.61% 3.55%(c)
Ratio of expenses to
average net assets*.... 1.74%(c) 1.73% 1.76% ** **
Ratio of net investment
income to average net
assets*................ 3.77%(c) 3.11% 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.
See notes to financial statements
-97-
[LOGO OF BB&T FUNDS]
<PAGE>
U.S. TREASURY MONEY MARKET FUND
Trust Shares
Financial Highlights
<TABLE>
<CAPTION>
For the six
months ended For the year ended September 30,
March 31, ------------------------------------------------
2000 1999 1998 1997 1996 1995
------------ -------- -------- -------- -------- --------
(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.. 0.024 0.043 0.049 0.046 0.046 0.050
-------- -------- -------- -------- -------- --------
Total from Investment
Activities............ 0.024 0.043 0.049 0.046 0.046 0.050
-------- -------- -------- -------- -------- --------
Distributions
Net investment income.. (0.024) (0.043) (0.049) (0.046) (0.046) (0.050)
-------- -------- -------- -------- -------- --------
Total Distributions... (0.024) (0.043) (0.049) (0.046) (0.046) (0.050)
-------- -------- -------- -------- -------- --------
Net Asset Value, End of
Period.................. $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000
======== ======== ======== ======== ======== ========
Total Return............ 2.41%(a) 4.34% 5.01% 4.71% 4.74% 5.07%
Ratios/Supplementary
Data:
Net Assets, End of
Period (000)........... $310,681 $282,585 $235,796 $266,840 $205,974 $120,083
Ratio of expenses to
average net assets..... 0.63%(b) 0.59% 0.61% 0.75% 0.75% 0.72%
Ratio of net investment
income to average net
assets................. 4.78%(b) 4.26% 4.90% 4.61% 4.63% 4.97%
Ratio of expenses to
average net assets*.... 0.73%(b) 0.73% 0.76% 0.75% 0.75% 0.75%
Ratio of net investment
income to average net
assets*................ 4.68%(b) 4.11% 4.75% 4.61% 4.63% 4.95%
</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.
See notes to financial statements
-98-
[LOGO OF BB&T FUNDS]
<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, --------------------------------------
2000 1999 1998 1997 1996 1995
------------ ------ ------ ------ ------ ------
(Unaudited)
<S> <C> <C> <C> <C> <C> <C>
Net Asset Value,
Beginning of Period...... $ 9.65 $10.06 $ 9.76 $ 9.73 $ 9.88 $ 9.60
------ ------ ------ ------ ------ ------
Investment Activities
Net investment income... 0.25 0.50 0.51 0.54 0.55 0.53
Net realized and
unrealized gain (loss)
on investments.......... (0.13) (0.41) 0.30 0.03 (0.15) 0.29
------ ------ ------ ------ ------ ------
Total from Investment
Activities............. 0.12 0.09 0.81 0.57 0.40 0.82
------ ------ ------ ------ ------ ------
Distributions
Net investment income... (0.25) (0.50) (0.51) (0.54) (0.55) (0.54)
------ ------ ------ ------ ------ ------
Total Distributions.... (0.25) (0.50) (0.51) (0.54) (0.55) (0.54)
------ ------ ------ ------ ------ ------
Net Asset Value, End of
Period................... $ 9.52 $ 9.65 $10.06 $ 9.76 $ 9.73 $ 9.88
====== ====== ====== ====== ====== ======
Total Return (excludes
sales charge)............ 1.24%(b) 0.95% 8.50% 6.07% 4.09% 8.74%
Ratios/Supplementary
Data:
Net Assets, End of
Period (000)............ $4,338 $4,626 $4,476 $5,151 $6,356 $7,102
Ratio of expenses to
average net assets...... 1.00%(c) 1.02% 1.06% 1.11% 1.19% 1.17%
Ratio of net investment
income to average net
assets.................. 5.19%(c) 5.04% 5.15% 5.60% 5.55% 5.50%
Ratio of expenses to
average net assets*..... 1.40%(c) 1.42% 1.44% 1.46% 1.54% 1.58%
Ratio of net investment
income to average net
assets*................. 4.79%(c) 4.64% 4.77% 5.25% 5.20% 5.09%
Portfolio turnover(a)... 50.89%(b) 99.99% 53.74% 87.99% 54.82% 106.81%
</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.
See notes to financial statements
-99-
[LOGO OF BB&T FUNDS]
<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, ----------------------------------------------
2000 1999 1998 1997 1996 1995
------------ -------- -------- -------- ------- -------
(Unaudited)
<S> <C> <C> <C> <C> <C> <C>
Net Asset Value,
Beginning of Period..... $ 9.65 $ 10.07 $ 9.77 $ 9.74 $ 9.89 $ 9.61
-------- -------- -------- -------- ------- -------
Investment Activities
Net investment income.. 0.26 0.53 0.53 0.57 0.57 0.56
Net realized and
unrealized gain (loss)
on investments......... (0.12) (0.42) 0.30 0.03 (0.15) 0.28
-------- -------- -------- -------- ------- -------
Total from Investment
Activities............ 0.14 0.11 0.83 0.60 0.42 0.84
-------- -------- -------- -------- ------- -------
Distributions
Net investment income.. (0.26) (0.53) (0.53) (0.57) (0.57) (0.56)
-------- -------- -------- -------- ------- -------
Total Distributions... (0.26) (0.53) (0.53) (0.57) (0.57) (0.56)
-------- -------- -------- -------- ------- -------
Net Asset Value, End of
Period.................. $ 9.53 $ 9.65 $ 10.07 $ 9.77 $ 9.74 $ 9.89
======== ======== ======== ======== ======= =======
Total Return............ 1.48%(b) 1.10% 8.77% 6.33% 4.36% 9.01%
Ratios/Supplementary
Data:
Net Assets, End of
Period (000)........... $183,629 $167,285 $157,329 $103,523 $62,621 $45,005
Ratio of expenses to
average net assets..... 0.75%(c) 0.77% 0.81% 0.86% 0.93% 0.93%
Ratio of net investment
income to average net
assets................. 5.45%(c) 5.29% 5.40% 5.85% 5.81% 5.78%
Ratio of expenses to
average net assets*.... 0.90%(c) 0.92% 0.94% 0.96% 1.03% 1.08%
Ratio of net investment
income to average net
assets*................ 5.30%(c) 5.14% 5.27% 5.75% 5.71% 5.64%
Portfolio turnover(a).. 50.89%(b) 99.99% 53.74% 87.99% 54.82% 106.81%
</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.
See notes to financial statements
-100-
[LOGO OF BB&T FUNDS]
<PAGE>
INTERMEDIATE U.S. GOVERNMENT BOND FUND
Class A Shares
Financial Highlights
<TABLE>
<CAPTION>
For the six
months ended For the year ended September 30,
March 31, --------------------------------------
2000 1999 1998 1997 1996 1995
------------ ------ ------ ------ ------ ------
(Unaudited)
<S> <C> <C> <C> <C> <C> <C>
Net Asset Value,
Beginning of Period...... $ 9.70 $10.57 $ 9.84 $ 9.63 $ 9.88 $ 9.33
------ ------ ------ ------ ------ ------
Investment Activities
Net investment income... 0.26 0.50 0.51 0.53 0.56 0.59
Net realized and
unrealized gain (loss)
on investments.......... (0.10) (0.76) 0.74 0.21 (0.25) 0.55
------ ------ ------ ------ ------ ------
Total from Investment
Activities............. 0.16 (0.26) 1.25 0.74 0.31 1.14
------ ------ ------ ------ ------ ------
Distributions
Net investment income... (0.26) (0.50) (0.52) (0.53) (0.56) (0.59)
Net realized gains...... (0.03) (0.11) -- -- -- --
------ ------ ------ ------ ------ ------
Total Distributions.... (0.29) (0.61) (0.52) (0.53) (0.56) (0.59)
------ ------ ------ ------ ------ ------
Net Asset Value, End of
Period................... $ 9.57 $ 9.70 $10.57 $ 9.84 $ 9.63 $ 9.88
====== ====== ====== ====== ====== ======
Total Return (excludes
sales charge)............ 1.67%(b) (2.49%) 13.07% 7.93% 3.17% 12.63%
Ratios/Supplementary
Data:
Net Assets, End of
Period (000)............ $3,192 $3,308 $4,562 $4,211 $3,659 $5,173
Ratio of expenses to
average net assets...... 1.10%(c) 1.08% 1.09% 1.12% 1.13% 1.09%
Ratio of net investment
income to average net
assets.................. 5.36%(c) 5.00% 5.10% 5.49% 5.68% 6.22%
Ratio of expenses to
average net assets*..... 1.45%(c) 1.43% 1.44% 1.47% 1.48% 1.50%
Ratio of net investment
income to average net
assets*................. 5.01%(c) 4.65% 4.75% 5.14% 5.33% 5.81%
Portfolio turnover(a)... 66.36%(b) 73.46% 60.98% 62.45% 76.29% 68.91%
</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.
See notes to financial statements
-101-
[LOGO OF BB&T FUNDS]
<PAGE>
INTERMEDIATE U.S. GOVERNMENT BOND FUND
Class B Shares
Financial Highlights
<TABLE>
<CAPTION>
For the six For the For the For the January 1,
months ended year ended year ended year ended 1996 to
March 31, September 30, September 30, September 30, September 30,
2000 1999 1998 1997 1996 (a)
------------ ------------- ------------- ------------- -------------
(Unaudited)
<S> <C> <C> <C> <C> <C>
Net Asset Value,
Beginning of Period..... $ 9.68 $10.54 $ 9.81 $ 9.60 $10.17
------ ------ ------ ------ ------
Investment Activities
Net investment income.. 0.22 0.43 0.43 0.46 0.31
Net realized and
unrealized gain (loss)
on investments......... (0.10) (0.75) 0.74 0.21 (0.57)
------ ------ ------ ------ ------
Total from Investment
Activities............ 0.12 (0.32) 1.17 0.67 (0.26)
------ ------ ------ ------ ------
Distributions
Net investment income.. (0.22) (0.43) (0.44) (0.46) (0.31)
Net realized gains..... (0.03) (0.11) -- -- --
------ ------ ------ ------ ------
Total Distributions... (0.25) (0.54) (0.44) (0.46) (0.31)
------ ------ ------ ------ ------
Net Asset Value, End of
Period.................. $ 9.55 $ 9.68 $10.54 $ 9.81 $ 9.60
====== ====== ====== ====== ======
Total Return (excludes
redemption charge)...... 1.29%(b) (3.13%) 12.26% 7.14% (2.48%)(b)
Ratios/Supplementary
Data:
Net Assets, End of
Period (000)........... $2,294 $2,679 $1,314 $ 623 $ 353
Ratio of expenses to
average net assets..... 1.85%(c) 1.83% 1.84% 1.87% 1.85%(c)
Ratio of net investment
income to average net
assets................. 4.60%(c) 4.28% 4.35% 4.74% 5.01%(c)
Ratio of expenses to
average net assets*.... 1.95%(c) 1.93% 1.94% 1.97% 1.95%(c)
Ratio of net investment
income to average net
assets*................ 4.50%(c) 4.18% 4.25% 4.64% 4.91%(c)
Portfolio turnover(d).. 66.36%(b) 73.46% 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.
See notes to financial statements
-102-
[LOGO OF BB&T FUNDS]
<PAGE>
INTERMEDIATE U.S. GOVERNMENT BOND FUND
Trust Shares
Financial Highlights
<TABLE>
<CAPTION>
For the six
months ended For the year ended September 30,
March 31, ------------------------------------------------
2000 1999 1998 1997 1996 1995
------------ -------- -------- -------- -------- -------
(Unaudited)
<S> <C> <C> <C> <C> <C> <C>
Net Asset Value,
Beginning of Period..... $ 9.72 $ 10.59 $ 9.85 $ 9.64 $ 9.89 $ 9.34
-------- -------- -------- -------- -------- -------
Investment Activities
Net investment income.. 0.27 0.53 0.54 0.56 0.58 0.61
Net realized and
unrealized gain (loss)
on investments......... (0.10) (0.76) 0.75 0.21 (0.25) 0.55
-------- -------- -------- -------- -------- -------
Total from Investment
Activities............ 0.17 (0.23) 1.29 0.77 0.33 1.16
-------- -------- -------- -------- -------- -------
Distributions
Net investment income.. (0.27) (0.53) (0.55) (0.56) (0.58) (0.61)
Net realized gains..... (0.03) (0.11) -- -- -- --
-------- -------- -------- -------- -------- -------
Total Distributions... (0.30) (0.64) (0.55) (0.56) (0.58) (0.61)
-------- -------- -------- -------- -------- -------
Net Asset Value, End of
Period.................. $ 9.59 $ 9.72 $ 10.59 $ 9.85 $ 9.64 $ 9.89
======== ======== ======== ======== ======== =======
Total Return............ 1.80%(b) (2.23%) 13.46% 8.20% 3.43% 12.91%
Ratios/Supplementary
Data:
Net Assets, End of
Period (000)........... $175,056 $213,417 $186,256 $142,545 $119,633 $78,578
Ratio of expenses to
average net assets..... 0.85%(c) 0.83% 0.84% 0.87% 0.87% 0.85%
Ratio of net investment
income to average net
assets................. 5.60%(c) 5.26% 5.35% 5.74% 5.94% 6.43%
Ratio of expenses to
average net assets*.... 0.95%(c) 0.93% 0.94% 0.97% 0.97% 1.00%
Ratio of net investment
income to average net
assets*................ 5.50%(c) 5.16% 5.25% 5.64% 5.84% 6.28%
Portfolio turnover(a).. 66.36%(b) 73.46% 60.98% 62.45% 76.29% 68.91%
</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.
See notes to financial statements
-103-
[LOGO OF BB&T FUNDS]
<PAGE>
INTERMEDIATE CORPORATE BOND FUND
Class A Shares
Financial Highlights
<TABLE>
<CAPTION>
December 2,
1999 to
March 31,
2000 (a)
-----------
(Unaudited)
<S> <C>
Net Asset Value, Beginning of Period.............................. $10.00
------
Investment Activities
Net investment income............................................ 0.20
Net realized and unrealized loss on investments.................. (0.14)
------
Total from Investment Activities................................ 0.06
------
Distributions
Net investment income............................................ (0.20)
------
Total Distributions............................................. (0.20)
------
Net Asset Value, End of Period.................................... $ 9.86
======
Total Return (excludes sales charge).............................. 0.61%(b)
Ratios/Supplementary Data:
Net Assets, End of Period (000).................................. $ 188
Ratio of expenses to average net assets.......................... 1.11%(c)
Ratio of net investment income to average net assets............. 6.19%(c)
Ratio of expenses to average net assets*......................... 1.87%(c)
Ratio of net investment income to average net assets*............ 5.43%(c)
Portfolio turnover (d)........................................... 98.10%(b)
</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 distinguising between classes of shares issued.
See notes to financial statements
-104-
[LOGO OF BB&T FUNDS]
<PAGE>
INTERMEDIATE CORPORATE BOND FUND
Class B Shares
Financial Highlights
<TABLE>
<CAPTION>
December 2,
1999 to
March 31,
2000 (a)
-----------
(Unaudited)
<S> <C>
Net Asset Value, Beginning of Period.............................. $10.00
------
Investment Activities
Net investment income............................................ 0.18
Net realized and unrealized loss on investments.................. (0.14)
------
Total from Investment Activities................................ 0.04
------
Distributions
Net investment income............................................ (0.18)
------
Total Distributions............................................. (0.18)
------
Net Asset Value, End of Period.................................... $ 9.86
======
Total Return (excludes redemption charge)......................... 0.45%(b)
Ratios/Supplementary Data:
Net Assets, End of Period (000).................................. $ 41
Ratio of expenses to average net assets.......................... 1.77%(c)
Ratio of net investment income to average net assets............. 5.58%(c)
Ratio of expenses to average net assets*......................... 2.36%(c)
Ratio of net investment income to average net assets*............ 4.99%(c)
Portfolio turnover (d)........................................... 98.10%(b)
</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 distinguising between classes of shares issued.
See notes to financial statements
-105-
[LOGO OF BB&T FUNDS]
<PAGE>
INTERMEDIATE CORPORATE BOND FUND
Trust Shares
Financial Highlights
<TABLE>
<CAPTION>
December 2,
1999 to
March 31,
2000 (a)
-----------
(Unaudited)
<S> <C>
Net Asset Value, Beginning of Period............................. $ 10.00
-------
Investment Activities
Net investment income........................................... 0.20
Net realized and unrealized loss on investments................. (0.14)
-------
Total from Investment Activities............................... 0.06
-------
Distributions
Net investment income........................................... (0.20)
-------
Total Distributions............................................ (0.20)
-------
Net Asset Value, End of Period................................... $ 9.86
=======
Total Return..................................................... 0.64%(b)
Ratios/Supplementary Data:
Net Assets, End of Period (000)................................. $72,025
Ratio of expenses to average net assets......................... 0.72%(c)
Ratio of net investment income to average net assets............ 6.34%(c)
Ratio of expenses to average net assets*........................ 1.32%(c)
Ratio of net investment income to average net assets*........... 5.75%(c)
Portfolio turnover (d).......................................... 98.10%(b)
</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 distinguising between classes of shares issued.
See notes to financial statements
-106-
[LOGO OF BB&T FUNDS]
<PAGE>
NORTH CAROLINA INTERMEDIATE TAX-FREE FUND
Class A Shares
Financial Highlights
<TABLE>
<CAPTION>
For the six
months ended For the year ended September 30,
March 31, -----------------------------------------
2000 1999 1998 1997 1996 1995
------------ ------- ------- ------ ------ ------
(Unaudited)
<S> <C> <C> <C> <C> <C> <C>
Net Asset Value,
Beginning of Period..... $ 9.89 $ 10.52 $ 10.27 $10.05 $10.15 $ 9.78
------- ------- ------- ------ ------ ------
Investment Activities
Net investment income.. 0.20 0.40 0.42 0.40 0.36 0.36
Net realized and
unrealized gain (loss)
on investments......... (0.03) (0.56) 0.25 0.22 (0.10) 0.37
------- ------- ------- ------ ------ ------
Total from Investment
Activities............ 0.17 (0.16) 0.67 0.62 0.26 0.73
------- ------- ------- ------ ------ ------
Distributions
Net investment income.. (0.20) (0.40) (0.42) (0.40) (0.36) (0.36)
Net realized gains..... --(d) (0.05) -- -- -- --
In excess of net
realized gains......... -- (0.02) -- -- -- --
------- ------- ------- ------ ------ ------
Total Distributions... (0.20) (0.47) (0.42) (0.40) (0.36) (0.36)
------- ------- ------- ------ ------ ------
Net Asset Value, End of
Period.................. $ 9.86 $ 9.89 $ 10.52 $10.27 $10.05 $10.15
======= ======= ======= ====== ====== ======
Total Return (excludes
sales charge)........... 1.80%(b) (1.53%) 6.63% 6.28% 2.61% 7.61%
Ratios/Supplementary
Data:
Net Assets, End of
Period (000)........... $11,511 $13,677 $11,592 $9,419 $9,261 $8,717
Ratio of expenses to
average net assets..... 0.92%(c) 0.95% 0.96% 1.00% 1.11% 1.05%
Ratio of net investment
income to average net
assets................. 4.17%(c) 3.95% 4.03% 3.94% 3.58% 3.63%
Ratio of expenses to
average net assets*.... 1.42%(c) 1.47% 1.48% 1.50% 1.61% 1.63%
Ratio of net investment
income to average net
assets*................ 3.67%(c) 3.44% 3.51% 3.44% 3.08% 3.05%
Portfolio turnover
(a).................... 44.35%(b) 39.70% 32.63% 16.98% 20.90% 9.38%
</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 distinguising between classes of shares issued.
(b) Not annualized.
(c) Annualized.
(d) Distribution per share was less than $0.005.
See notes to financial statements
-107-
[LOGO OF BB&T FUNDS]
<PAGE>
NORTH CAROLINA INTERMEDIATE TAX-FREE FUND
Trust Shares
Financial Highlights
<TABLE>
<CAPTION>
For the six
months ended For the year ended September 30,
March 31, --------------------------------------------
2000 1999 1998 1997 1996 1995
------------ ------- ------- ------- ------- -------
(Unaudited)
<S> <C> <C> <C> <C> <C> <C>
Net Asset Value,
Beginning of Period..... $ 9.89 $ 10.53 $ 10.27 $ 10.05 $ 10.15 $ 9.78
------- ------- ------- ------- ------- -------
Investment Activities
Net investment income.. 0.21 0.42 0.43 0.41 0.38 0.37
Net realized and
unrealized gain (loss)
on investments......... (0.03) (0.57) 0.26 0.22 (0.10) 0.37
------- ------- ------- ------- ------- -------
Total from Investment
Activities............ 0.18 (0.15) 0.69 0.63 0.28 0.74
------- ------- ------- ------- ------- -------
Distributions
Net investment income.. (0.21) (0.42) (0.43) (0.41) (0.38) (0.37)
Net realized gains..... -- (d) (0.05) -- -- -- --
In excess of net
realized gains......... -- (0.02) -- -- -- --
------- ------- ------- ------- ------- -------
Total Distributions... (0.21) (0.49) (0.43) (0.41) (0.38) (0.37)
------- ------- ------- ------- ------- -------
Net Asset Value, End of
Period.................. $ 9.86 $ 9.89 $ 10.53 $ 10.27 $ 10.05 $ 10.15
======= ======= ======= ======= ======= =======
Total Return............ 1.88%(b) (1.47%) 6.90% 6.43% 2.77% 7.77%
Ratios/Supplementary
Data:
Net Assets, End of
Period (000)........... $75,052 $70,430 $73,454 $61,120 $28,443 $28,091
Ratio of expenses to
average net assets..... 0.78%(c) 0.80% 0.81% 0.85% 0.96% 0.91%
Ratio of net investment
income to average net
assets................. 4.33%(c) 4.09% 4.18% 4.13% 3.72% 3.78%
Ratio of expenses to
average net assets*.... 0.93%(c) 0.98% 0.98% 1.00% 1.11% 1.13%
Ratio of net investment
income to average net
assets*................ 4.18%(c) 3.92% 4.01% 3.98% 3.57% 3.55%
Portfolio turnover(a).. 44.35%(b) 39.70% 32.63% 16.98% 20.90% 9.38%
</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 distinguising between classes of shares issued.
(b) Not annualized.
(c) Annualized.
(d) Distribution per share was less than $0.005.
See notes to financial statements
-108-
[LOGO OF BB&T FUNDS]
<PAGE>
SOUTH CAROLINA INTERMEDIATE TAX-FREE FUND
Class A Shares
Financial Highlights
<TABLE>
<CAPTION>
For the six For the October 20,
months ended year ended 1997 to
March 31, September 30, September 30,
2000 1999 1998 (a)
------------ ------------- -------------
(Unaudited)
<S> <C> <C> <C>
Net Asset Value, Beginning of
Period.............................. $ 9.80 $10.47 $10.00
------ ------ ------
Investment Activities
Net investment income.............. 0.19 0.38 0.31
Net realized and unrealized gain
(loss) on investments.............. (0.05) (0.59) 0.47
------ ------ ------
Total from Investment Activities.. 0.14 (0.21) 0.78
------ ------ ------
Distributions
Net investment income.............. (0.19) (0.38) (0.31)
Net realized gains................. -- (0.06) --
In excess of net realized gains.... -- (0.02) --
------ ------ ------
Total Distributions............... (0.19) (0.46) (0.31)
------ ------ ------
Net Asset Value, End of Period...... $ 9.75 $ 9.80 $10.47
====== ====== ======
Total Return (excludes sales
charge)............................. 1.44%(b) (2.09%) 7.91%(b)
Ratios/Supplementary Data:
Net Assets, End of Period (000).... $1,121 $1,160 $ 297
Ratio of expenses to average net
assets............................. 0.99%(c) 0.97% 1.04%(c)
Ratio of net investment income to
average net assets................. 3.89%(c) 3.72% 3.85%(c)
Ratio of expenses to average net
assets*............................ 1.79%(c) 1.91% 1.97%(c)
Ratio of net investment income to
average net assets*................ 3.09%(c) 2.78% 2.78%(c)
Portfolio turnover(d).............. 56.28%(b) 71.96% 58.80%(b)
</TABLE>
----
* During the period, certain fees were voluntarily reduced or reimbursed. If
such 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.
(d) Portfolio turnover is calculated on the basis of the Fund as a whole
without distinguising between classes of shares issued.
See notes to financial statements
-109-
[LOGO OF BB&T FUNDS]
<PAGE>
SOUTH CAROLINA INTERMEDIATE TAX-FREE FUND
Trust Shares
Financial Highlights
<TABLE>
<CAPTION>
For the six For the October 20,
months ended year ended 1997 to
March 31, September 30, September 30,
2000 1999 1998 (a)
------------ ------------- -------------
(Unaudited)
<S> <C> <C> <C>
Net Asset Value, Beginning of
Period.............................. $ 9.74 $ 10.41 $ 10.00
------- ------- -------
Investment Activities
Net investment income.............. 0.19 0.39 0.38
Net realized and unrealized gain
(loss) on investments.............. (0.05) (0.59) 0.41
------- ------- -------
Total from Investment Activities.. 0.14 (0.20) 0.79
------- ------- -------
Distributions
Net investment income.............. (0.19) (0.39) (0.38)
Net realized gains................. -- (0.06) --
In excess of net realized gains.... -- (0.02) --
------- ------- -------
Total Distributions............... (0.19) (0.47) (0.38)
------- ------- -------
Net Asset Value, End of Period...... $ 9.69 $ 9.74 $ 10.41
======= ======= =======
Total Return........................ 1.51%(b) (1.98%) 8.02%(b)
Ratios/Supplementary Data:
Net Assets, End of Period (000).... $15,760 $16,295 $18,242
Ratio of expenses to average net
assets............................. 0.84%(c) 0.82% 0.88%(c)
Ratio of net investment income to
average net assets................. 4.03%(c) 3.86% 3.88%(c)
Ratio of expenses to average net
assets*............................ 1.29%(c) 1.41% 1.39%(c)
Ratio of net investment income to
average net assets*................ 3.58%(c) 3.26% 3.37%(c)
Portfolio turnover (d)............. 56.28%(b) 71.96% 58.80%(b)
</TABLE>
----
* During the period, certain fees were voluntarily reduced or reimbursed. If
such 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.
(d) Portfolio turnover is calculated on the basis of the Fund as a whole
without distinguising between classes of shares issued.
See notes to financial statements
-110-
[LOGO OF BB&T FUNDS]
<PAGE>
VIRGINIA INTERMEDIATE TAX-FREE FUND
Class A Shares
Financial Highlights
<TABLE>
<CAPTION>
For the six May 17,
months ended 1999 to
March 31, September 30,
2000 1999 (a)
------------ -------------
(Unaudited)
<S> <C> <C>
Net Asset Value, Beginning of Period............. $10.86 $11.24
------ ------
Investment Activities
Net investment income........................... 0.22 0.30
Net realized and unrealized loss on
investments..................................... (0.03) (0.38)
------ ------
Total from Investment Activities............... 0.19 (0.08)
------ ------
Distributions
Net investment income........................... (0.22) (0.30)
------ ------
Total Distributions............................ (0.22) (0.30)
------ ------
Net Asset Value, End of Period................... $10.83 $10.86
====== ======
Total Return (excludes sales charge)............. 1.83%(b) (0.66%)(b)
Ratios/Supplementary Data:
Net Assets, End of Period (000)................. $ 126 $ 74
Ratio of expenses to average net assets......... 0.96%(c) 1.00%(c)
Ratio of net investment income to average net
assets.......................................... 4.21%(c) 4.05%(c)
Ratio of expenses to average net assets*........ 1.46%(c) 1.51%(c)
Ratio of net investment income to average net
assets*......................................... 3.72%(c) 3.53%(c)
Portfolio turnover(d)........................... 43.91%(b) 27.05%(b)
</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 distinguising between classes of shares issued.
See notes to financial statements
-111-
[LOGO OF BB&T FUNDS]
<PAGE>
VIRGINIA INTERMEDIATE TAX-FREE FUND
Trust Shares
Financial Highlights
<TABLE>
<CAPTION>
For the six May 17,
months ended 1999 to
March 31, September 30,
2000 1999 (a)
------------ -------------
(Unaudited)
<S> <C> <C>
Net Asset Value, Beginning of Period............. $ 10.86 $ 11.24
------- -------
Investment Activities
Net investment income........................... 0.23 0.17
Net realized and unrealized loss on
investments..................................... (0.03) (0.38)
------- -------
Total from Investment Activities............... 0.20 (0.21)
------- -------
Distributions
Net investment income........................... (0.23) (0.17)
------- -------
Total Distributions............................ (0.23) (0.17)
------- -------
Net Asset Value, End of Period................... $ 10.83 $ 10.86
======= =======
Total Return..................................... 1.90%(b) (1.77%)(b)
Ratios/Supplementary Data:
Net Assets, End of Period (000)................. $78,549 $79,353
Ratio of expenses to average net assets......... 0.82%(c) 0.88%(c)
Ratio of net investment income to average net
assets.......................................... 4.33%(c) 4.18%(c)
Ratio of expenses to average net assets*........ 0.97%(c) 0.99%(c)
Ratio of net investment income to average net
assets*......................................... 4.18%(c) 4.07%(c)
Portfolio turnover(d)........................... 43.91%(b) 27.05%(b)
</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 distinguising between classes of shares issued.
See notes to financial statements
-112-
[LOGO OF BB&T FUNDS]
<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, -------------------------------------------
2000 1999 1998 1997 1996 1995
------------ ------- ------- ------- ------- -------
(Unaudited)
<S> <C> <C> <C> <C> <C> <C>
Net Asset Value,
Beginning of Period..... $ 19.60 $ 18.48 $ 19.98 $ 15.31 $ 12.97 $ 11.26
------- ------- ------- ------- ------- -------
Investment Activities
Net investment income.. 0.13 0.25 0.23 0.26 0.26 0.25
Net realized and
unrealized gain (loss)
on investments......... 0.14 1.93 (0.17) 5.30 2.43 1.98
------- ------- ------- ------- ------- -------
Total from Investment
Activities............ 0.27 2.18 0.06 5.56 2.69 2.23
------- ------- ------- ------- ------- -------
Distributions
Net investment income.. (0.13) (0.25) (0.23) (0.26) (0.26) (0.25)
Net realized gains..... (1.59) (0.81) (1.33) (0.63) (0.09) (0.12)
In excess of net
realized gains......... -- -- -- -- -- (0.15)
------- ------- ------- ------- ------- -------
Total Distributions... (1.72) (1.06) (1.56) (0.89) (0.35) (0.52)
------- ------- ------- ------- ------- -------
Net Asset Value, End of
Period.................. $ 18.15 $ 19.60 $ 18.48 $ 19.98 $ 15.31 $ 12.97
======= ======= ======= ======= ======= =======
Total Return (excludes
sales charge)........... 1.27%(b) 11.64% 0.10% 37.80% 20.97% 20.62%
Ratios/Supplementary
Data:
Net Assets, End of
Period (000)........... $34,771 $38,604 $39,817 $34,679 $18,949 $10,842
Ratio of expenses to
average net assets..... 1.11%(c) 1.10% 1.10% 1.09% 1.11% 1.07%
Ratio of net investment
income to average net
assets................. 1.46%(c) 1.22% 1.18% 1.52% 1.82% 2.15%
Ratio of expenses to
average net assets*.... 1.57%(c) 1.59% 1.59% 1.58% 1.60% 1.60%
Ratio of net investment
income to average net
assets*................ 1.00%(c) 0.73% 0.69% 1.03% 1.33% 1.62%
Portfolio turnover(a).. 14.19%(b) 13.52% 13.17% 22.66% 19.82% 8.73%
</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 distinguising between classes of shares issued.
(b) Not annualized.
(c) Annualized.
See notes to financial statements
-113-
[LOGO OF BB&T FUNDS]
<PAGE>
GROWTH AND INCOME STOCK FUND
Class B Shares
Financial Highlights
<TABLE>
<CAPTION>
For the six For the year ended January 1,
months ended September 30, 1996 to
March 31, -------------------------- September 30,
2000 1999 1998 1997 1996 (a)
------------ ------- ------- ------- -------------
(Unaudited)
<S> <C> <C> <C> <C> <C>
Net Asset Value,
Beginning of Period..... $ 19.51 $ 18.42 $ 19.93 $ 15.29 $13.78
------- ------- ------- ------- ------
Investment Activities
Net investment income.. 0.07 0.11 0.09 0.13 0.13
Net realized and
unrealized gain (loss)
on investments......... 0.13 1.90 (0.18) 5.28 1.52
------- ------- ------- ------- ------
Total from Investment
Activities............ 0.20 2.01 (0.09) 5.41 1.65
------- ------- ------- ------- ------
Distributions
Net investment income.. (0.07) (0.11) (0.09) (0.14) (0.14)
Net realized gains..... (1.59) (0.81) (1.33) (0.63) --
------- ------- ------- ------- ------
Total Distributions... (1.66) (0.92) (1.42) (0.77) (0.14)
------- ------- ------- ------- ------
Net Asset Value, End of
Period.................. $ 18.05 $ 19.51 $ 18.42 $ 19.93 $15.29
======= ======= ======= ======= ======
Total Return (excludes
redemption charge)...... 0.85%(b) 10.73% (0.67%) 36.70% 12.01%(b)
Ratios/Supplementary
Data:
Net Assets, End of
Period (000)........... $36,204 $38,590 $32,455 $16,690 $3,880
Ratio of expenses to
average net assets..... 1.86%(c) 1.84% 1.85% 1.84% 1.85%(c)
Ratio of net investment
income to average net
assets................. 0.71%(c) 0.47% 0.43% 0.77% 1.13%(c)
Ratio of expenses to
average net assets*.... 2.07%(c) 2.08% 2.09% 2.08% 2.09%(c)
Ratio of net investment
income to average net
assets*................ 0.50%(c) 0.23% 0.19% 0.53% 0.89%(c)
Portfolio turnover
(d).................... 14.19%(b) 13.52% 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 distinguising between classes of shares issued.
See notes to financial statements
-114-
[LOGO OF BB&T FUNDS]
<PAGE>
GROWTH AND INCOME STOCK FUND
Trust Shares
Financial Highlights
<TABLE>
<CAPTION>
For the six
months ended For the year ended September 30,
March 31, ------------------------------------------------
2000 1999 1998 1997 1996 1995
------------ -------- -------- -------- -------- --------
(Unaudited)
<S> <C> <C> <C> <C> <C> <C>
Net Asset Value,
Beginning of Period..... $ 19.64 $ 18.52 $ 20.02 $ 15.34 $ 12.99 $ 11.28
-------- -------- -------- -------- -------- --------
Investment Activities
Net investment income.. 0.16 0.30 0.28 0.30 0.29 0.28
Net realized and
unrealized gain (loss)
on investments......... 0.13 1.93 (0.17) 5.31 2.44 1.98
-------- -------- -------- -------- -------- --------
Total from Investment
Activities............ 0.29 2.23 0.11 5.61 2.73 2.26
-------- -------- -------- -------- -------- --------
Distributions
Net investment income.. (0.16) (0.30) (0.28) (0.30) (0.29) (0.28)
Net realized gains..... (1.59) (0.81) (1.33) (0.63) (0.09) (0.12)
In excess of net
realized gains......... -- -- -- -- -- (0.15)
-------- -------- -------- -------- -------- --------
Total Distributions... (1.75) (1.11) (1.61) (0.93) (0.38) (0.55)
-------- -------- -------- -------- -------- --------
Net Asset Value, End of
Period.................. $ 18.18 $ 19.64 $ 18.52 $ 20.02 $ 15.34 $ 12.99
======== ======== ======== ======== ======== ========
Total Return............ 1.34%(b) 11.89% 0.35% 38.13% 21.31% 20.88%
Ratios/Supplementary
Data:
Net Assets, End of
Period (000)........... $352,881 $379,321 $348,613 $308,984 $206,659 $145,603
Ratio of expenses to
average net assets..... 0.86%(c) 0.84% 0.85% 0.84% 0.86% 0.82%
Ratio of net investment
income to average net
assets................. 1.71%(c) 1.47% 1.43% 1.77% 2.07% 2.40%
Ratio of expenses to
average net assets*.... 1.07%(c) 1.09% 1.09% 1.08% 1.10% 1.10%
Ratio of net investment
income to average net
assets*................ 1.50%(c) 1.23% 1.19% 1.53% 1.83% 2.11%
Portfolio turnover
(a).................... 14.19%(b) 13.52% 13.17% 22.66% 19.82% 8.73%
</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 distinguising between classes of shares issued.
(b) Not annualized.
(c) Annualized.
See notes to financial statements
-115-
[LOGO OF BB&T FUNDS]
<PAGE>
BALANCED FUND
Class A Shares
Financial Highlights
<TABLE>
<CAPTION>
For the six
months ended For the year ended September 30,
March 31, ------------------------------------------
2000 1999 1998 1997 1996 1995
------------ ------- ------- ------- ------- ------
(Unaudited)
<S> <C> <C> <C> <C> <C> <C>
Net Asset Value,
Beginning of Period..... $ 13.83 $ 13.82 $ 13.63 $ 11.96 $ 11.04 $ 9.76
------- ------- ------- ------- ------- ------
Investment Activities
Net investment income.. 0.18 0.35 0.39 0.45 0.43 0.44
Net realized and
unrealized gain (loss)
on investments......... (0.05) 0.74 0.54 2.04 0.92 1.27
------- ------- ------- ------- ------- ------
Total from Investment
Activities............ 0.13 1.09 0.93 2.49 1.35 1.71
------- ------- ------- ------- ------- ------
Distributions
Net investment income.. (0.18) (0.35) (0.39) (0.45) (0.43) (0.43)
Net realized gains..... (0.58) (0.73) (0.35) (0.37) -- --
------- ------- ------- ------- ------- ------
Total Distributions... (0.76) (1.08) (0.74) (0.82) (0.43) (0.43)
------- ------- ------- ------- ------- ------
Net Asset Value, End of
Period.................. $ 13.20 $ 13.83 $ 13.82 $ 13.63 $ 11.96 $11.04
======= ======= ======= ======= ======= ======
Total Return (excludes
sales charge)........... 0.92%(b) 7.72% 6.89% 21.76% 12.43% 18.00%
Ratios/Supplementary
Data:
Net Assets, End of
Period (000)........... $19,135 $21,207 $21,948 $17,234 $12,456 $9,257
Ratio of expenses to
average net assets..... 1.16%(c) 1.15% 1.17% 1.18% 1.20% 1.17%
Ratio of net investment
income to average net
assets................. 2.69%(c) 2.43% 2.75% 3.63% 3.78% 4.27%
Ratio of expenses to
average net assets*.... 1.62%(c) 1.64% 1.66% 1.67% 1.69% 1.71%
Ratio of net investment
income to average net
assets*................ 2.23%(c) 1.94% 2.26% 3.14% 3.29% 3.73%
Portfolio turnover(a).. 34.43%(b) 35.98% 31.85% 27.07% 19.87% 23.68%
</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 distinguising between classes of shares issued.
(b) Not annualized.
(c) Annualized.
See notes to financial statements
-116-
[LOGO OF BB&T FUNDS]
<PAGE>
BALANCED FUND
Class B Shares
Financial Highlights
<TABLE>
<CAPTION>
For the six For the year ended January 1,
months ended September 30, 1996 to
March 31, ------------------------ September 30,
2000 1999 1998 1997 1996 (a)
------------ ------- ------- ------ -------------
(Unaudited)
<S> <C> <C> <C> <C> <C>
Net Asset Value,
Beginning of Period..... $ 13.75 $ 13.76 $ 13.57 $11.91 $11.54
------- ------- ------- ------ ------
Investment Activities
Net investment income.. 0.13 0.26 0.28 0.36 0.27
Net realized and
unrealized gain (loss)
on investments......... (0.06) 0.71 0.55 2.04 0.37
------- ------- ------- ------ ------
Total from Investment
Activities............ 0.07 0.97 0.83 2.40 0.64
------- ------- ------- ------ ------
Distributions
Net investment income.. (0.13) (0.25) (0.29) (0.37) (0.27)
Net realized gains..... (0.58) (0.73) (0.35) (0.37) --
------- ------- ------- ------ ------
Total Distributions... (0.71) (0.98) (0.64) (0.74) (0.27)
------- ------- ------- ------ ------
Net Asset Value, End of
Period.................. $ 13.11 $ 13.75 $ 13.76 $13.57 $11.91
======= ======= ======= ====== ======
Total Return (excludes
redemption charge)...... 0.48%(b) 6.82% 6.16% 20.90% 5.67%(b)
Ratios/Supplementary
Data:
Net Assets, End of
Period (000)........... $19,623 $21,610 $15,183 $6,360 $2,339
Ratio of expenses to
average net assets..... 1.91%(c) 1.90% 1.92% 1.93% 1.95%(c)
Ratio of net investment
income to average net
assets................. 1.94%(c) 1.70% 1.98% 2.88% 3.13%(c)
Ratio of expenses to
average net assets*.... 2.12%(c) 2.14% 2.16% 2.17% 2.18%(c)
Ratio of net investment
income to average net
assets*................ 1.73%(c) 1.46% 1.74% 2.64% 2.90%(c)
Portfolio turnover(d).. 34.43%(b) 35.98% 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 distinguising between classes of shares issued.
See notes to financial statements
-117-
[LOGO OF BB&T FUNDS]
<PAGE>
BALANCED FUND
Trust Shares
Financial Highlights
<TABLE>
<CAPTION>
For the six
months ended For the year ended September 30,
March 31, ---------------------------------------------
2000 1999 1998 1997 1996 1995
------------ -------- -------- ------- ------- -------
(Unaudited)
<S> <C> <C> <C> <C> <C> <C>
Net Asset Value,
Beginning of Period..... $ 13.80 $ 13.79 $ 13.60 $ 11.93 $ 11.01 $ 9.74
-------- -------- -------- ------- ------- -------
Investment Activities
Net investment income.. 0.20 0.39 0.42 0.49 0.46 0.46
Net realized and
unrealized gain (loss)
on investments......... (0.06) 0.74 0.54 2.04 0.92 1.27
-------- -------- -------- ------- ------- -------
Total from Investment
Activities............ 0.14 1.13 0.96 2.53 1.38 1.73
-------- -------- -------- ------- ------- -------
Distributions
Net investment income.. (0.20) (0.39) (0.42) (0.49) (0.46) (0.46)
Net realized gains..... (0.58) (0.73) (0.35) (0.37) -- --
-------- -------- -------- ------- ------- -------
Total Distributions... (0.78) (1.12) (0.77) (0.86) (0.46) (0.46)
-------- -------- -------- ------- ------- -------
Net Asset Value, End of
Period.................. $ 13.16 $ 13.80 $ 13.79 $ 13.60 $ 11.93 $ 11.01
======== ======== ======== ======= ======= =======
Total Return............ 0.98%(b) 8.01% 7.18% 22.11% 12.74% 18.23%
Ratios/Supplementary
Data:
Net Assets, End of
Period (000)........... $109,327 $120,278 $108,943 $88,524 $69,374 $49,794
Ratio of expenses to
average net assets..... 0.91%(c) 0.90% 0.92% 0.93% 0.95% 0.92%
Ratio of net investment
income to average net
assets................. 2.94%(c) 2.69% 3.00% 3.88% 4.03% 4.51%
Ratio of expenses to
average net assets*.... 1.12%(c) 1.14% 1.16% 1.17% 1.19% 1.21%
Ratio of net investment
income to average net
assets*................ 2.73%(c) 2.45% 2.76% 3.64% 3.79% 4.22%
Portfolio turnover(a).. 34.43%(b) 35.98% 31.85% 27.07% 19.87% 23.68%
</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 distinguising between classes of shares issued.
(b) Not annualized.
(c) Annualized.
See notes to financial statements
-118-
[LOGO OF BB&T FUNDS]
<PAGE>
LARGE COMPANY GROWTH FUND
Class A Shares
Financial Highlights
<TABLE>
<CAPTION>
For the six For the October 3,
months ended year ended 1997 to
March 31, September 30, September 30,
2000 1999 1998 (a)
------------ ------------- -------------
(Unaudited)
<S> <C> <C> <C>
Net Asset Value, Beginning of
Period............................ $ 11.96 $ 9.62 $10.00
------- ------ ------
Investment Activities
Net investment loss.............. (0.02) (0.04) --
Net realized and unrealized gain
(loss) on investments............ 4.62 2.94 (0.25)
------- ------ ------
Total from Investment
Activities...................... 4.60 2.90 (0.25)
------- ------ ------
Distributions
Net investment income............ -- -- (0.03)
Net realized gains............... (0.74) (0.56) (0.10)
------- ------ ------
Total Distributions............. (0.74) (0.56) (0.13)
======= ====== ======
Net Asset Value, End of Period.... $ 15.82 $11.96 $ 9.62
Total Return (excludes sales
charge)........................... 39.51% (b) 30.93% (2.54%)(b)
Ratios/Supplementary Data:
Net Assets, End of Period (000).. $11,515 $5,912 $1,938
Ratio of expenses to average net
assets........................... 1.20% (c) 1.22% 1.39% (c)
Ratio of net investment loss to
average net assets............... (0.43%)(c) (0.34%) (0.04%)(c)
Ratio of expenses to average net
assets*.......................... 1.65% (c) 1.71% 1.87% (c)
Ratio of net investment loss to
average net assets*.............. (0.88%)(c) (0.83%) (0.52%)(c)
Portfolio turnover(d)............ 42.90% (b) 67.59% 108.36% (b)
</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 distinguising between classes of shares issued.
See notes to financial statements
-119-
[LOGO OF BB&T FUNDS]
<PAGE>
LARGE COMPANY GROWTH FUND
Class B Shares
Financial Highlights
<TABLE>
<CAPTION>
For the six For the October 3,
months ended year ended 1997 to
March 31, September 30, September 30,
2000 1999 1998 (a)
------------ ------------- -------------
(Unaudited)
<S> <C> <C> <C>
Net Asset Value, Beginning of
Period............................ $ 11.82 $ 9.58 $10.00
------- ------- ------
Investment Activities
Net investment loss.............. (0.07) (0.12) (0.02)
Net realized and unrealized gain
(loss) on investments............ 4.56 2.92 (0.29)
------- ------- ------
Total from Investment
Activities...................... 4.49 2.80 (0.31)
------- ------- ------
Distributions
Net investment income............ -- -- (0.01)
Net realized gains............... (0.74) (0.56) (0.10)
------- ------- ------
Total Distributions............. (0.74) (0.56) (0.11)
------- ------- ------
Net Asset Value, End of Period.... $ 15.57 $ 11.82 $ 9.58
======= ======= ======
Total Return (excludes redemption
charge)........................... 39.04%(b) 29.97% (3.13%)(b)
Ratios/Supplementary Data:
Net Assets, End of Period (000).. $23,704 $12,289 $3,985
Ratio of expenses to average net
assets........................... 1.95%(c) 1.97% 2.14%(c)
Ratio of net investment loss to
average net assets............... (1.18%)(c) (1.08%) (0.78%)(c)
Ratio of expenses to average net
assets*.......................... 2.15%(c) 2.21% 2.37%(c)
Ratio of net investment loss to
average net assets*.............. (1.38%)(c) (1.32%) (1.01%)(c)
Portfolio turnover (d)........... 42.90%(b) 67.59% 108.36%(b)
</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 distinguising between classes of shares issued.
See notes to financial statements
-120-
[LOGO OF BB&T FUNDS]
<PAGE>
LARGE COMPANY GROWTH FUND
Trust Shares
Financial Highlights
<TABLE>
<CAPTION>
For the six For the October 3,
months ended year ended 1997 to
March 31, September 30, September 30,
2000 1999 1998 (a)
------------ ------------- -------------
(Unaudited)
<S> <C> <C> <C>
Net Asset Value, Beginning of
Period........................... $ 11.99 $ 9.63 $ 10.00
-------- ------- -------
Investment Activities
Net investment income (loss).... (0.01) (0.01) 0.04
Net realized and unrealized gain
(loss) on investments........... 4.65 2.93 (0.27)
-------- ------- -------
Total from Investment
Activities..................... 4.64 2.92 (0.23)
-------- ------- -------
Distributions
Net investment income........... -- -- (0.04)
Net realized gains.............. (0.74) (0.56) (0.10)
-------- ------- -------
Total Distributions............ (0.74) (0.56) (0.14)
-------- ------- -------
Net Asset Value, End of Period... $ 15.89 $ 11.99 $ 9.63
======== ======= =======
Total Return..................... 39.76% (b) 31.15% (2.33%)(b)
Ratios/Supplementary Data:
Net Assets, End of Period
(000)........................... $134,461 $90,635 $50,975
Ratio of expenses to average net
assets.......................... 0.94% (c) 0.98% 1.06% (c)
Ratio of net investment income
(loss) to average net assets.... (0.19%)(c) (0.08%) 0.41% (c)
Ratio of expenses to average net
assets*......................... 1.15% (c) 1.22% 1.30% (c)
Ratio of net investment income
(loss) to average net assets*... (0.39%)(c) (0.32%) 0.17% (c)
Portfolio turnover (d).......... 42.90% (b) 67.59% 108.36% (b)
</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 distinguising between classes of shares issued.
See notes to financial statements
-121-
[LOGO OF BB&T FUNDS]
<PAGE>
SMALL COMPANY GROWTH FUND
Class A Shares
Financial Highlights
<TABLE>
<CAPTION>
For the six For the year ended September December 7,
months ended 30, 1994 to
March 31, ----------------------------------- September 30,
2000 1999 1998 1997 1996 1995 (a)
------------ ------- ------ ------- ------ -------------
(Unaudited)
<S> <C> <C> <C> <C> <C> <C>
Net Asset Value,
Beginning of Period..... $ 24.92 $ 17.50 $23.33 $ 21.06 $14.53 $10.00
------- ------- ------ ------- ------ ------
Investment Activities
Net investment loss.... (0.17) (0.28) (0.29) (0.15) (0.20) (0.08)
Net realized and
unrealized gain (loss)
on investments......... 17.82 7.70 (5.23) 2.44 6.73 4.61
------- ------- ------ ------- ------ ------
Total from Investment
Activities............ 17.65 7.42 (5.52) 2.29 6.53 4.53
------- ------- ------ ------- ------ ------
Distributions
Net realized gains..... (3.00) -- -- -- -- --
In excess of net
realized gains......... -- -- (0.31) (0.02) -- --
------- ------- ------ ------- ------ ------
Total Distributions... (3.00) -- (0.31) (0.02) -- --
------- ------- ------ ------- ------ ------
Net Asset Value, End of
Period.................. $ 39.57 $ 24.92 $17.50 $ 23.33 $21.06 $14.53
======= ======= ====== ======= ====== ======
Total Return (excludes
sales charge)........... 75.14%(b) 42.32% (23.81%) 10.90% 44.94% 45.30%(b)
Ratios/Supplementary
Data:
Net Assets, End of
Period (000)........... $20,181 $11,336 $9,456 $12,676 $7,413 $1,096
Ratio of expenses to
average net assets..... 1.60% (c) 1.80% 1.86% 1.89% 2.01% 2.50% (c)
Ratio of net investment
loss to average net
assets................. (0.90%)(c) (1.23%) (1.36%) (1.29%) (1.26%) (1.56%)(c)
Ratio of expenses to
average net assets*.... 1.85% (c) 2.05% 2.11% 2.14% 2.26% 2.84% (c)
Ratio of net investment
loss to average net
assets*................ (1.15%)(c) (1.48%) (1.61%) (1.54%) (1.51%) (1.90%)(c)
Portfolio turnover
(d).................... 99.12% (b) 184.39% 157.44% 80.66% 71.62% 46.97% (b)
</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 distinguising between classes of shares issued.
See notes to financial statements
-122-
[LOGO OF BB&T FUNDS]
<PAGE>
SMALL COMPANY GROWTH FUND
Class B Shares
Financial Highlights
<TABLE>
<CAPTION>
For the six For the year ended January 1,
months ended September 30, 1996 to
March 31, ------------------------- September 30,
2000 1999 1998 1997 1996 (a)
------------ ------- ------ ------ -------------
(Unaudited)
<S> <C> <C> <C> <C> <C>
Net Asset Value,
Beginning of Period..... $ 24.21 $ 17.13 $23.02 $20.92 $15.24
------- ------- ------ ------ ------
Investment Activities
Net investment loss.... (0.25) (0.41) (0.39) (0.20) (0.21)
Net realized and
unrealized gain (loss)
on investments......... 17.23 7.49 (5.19) 2.32 5.89
------- ------- ------ ------ ------
Total from Investment
Activities............ 16.98 7.08 (5.58) 2.12 5.68
------- ------- ------ ------ ------
Distributions
Net realized gains..... (3.00) -- -- -- --
In excess of net
realized gains......... -- -- (0.31) (0.02) --
------- ------- ------ ------ ------
Total Distributions... (3.00) -- (0.31) (0.02) --
------- ------- ------ ------ ------
Net Asset Value, End of
Period.................. $ 38.19 $ 24.21 $17.13 $23.02 $20.92
======= ======= ====== ====== ======
Total Return (excludes
redemption charge)...... 74.55%(b) 41.25% (24.40%) 10.16% 37.27%(b)
Ratios/Supplementary
Data:
Net Assets, End of
Period (000)........... $21,420 $11,054 $8,609 $8,869 $3,200
Ratio of expenses to
average net assets..... 2.35% (c) 2.55% 2.61% 2.64% 2.72% (c)
Ratio of net investment
loss to average net
assets................. (1.67%)(c) (1.98%) (2.11%) (2.04%) (2.01%)(c)
Portfolio turnover(d).. 99.12% (b) 184.39% 157.44% 80.66% 71.62%
</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 distinguising between classes of shares issued.
See notes to financial statements
-123-
[LOGO OF BB&T FUNDS]
<PAGE>
SMALL COMPANY GROWTH FUND
Trust Shares
Financial Highlights
<TABLE>
<CAPTION>
For the six December 7,
months ended For the year ended September 30, 1994 to
March 31, -------------------------------------- September 30,
2000 1999 1998 1997 1996 1995 (a)
------------ -------- ------- ------- ------- -------------
(Unaudited)
<S> <C> <C> <C> <C> <C> <C>
Net Asset Value,
Beginning of Period..... $ 25.25 $ 17.69 $ 23.52 $ 21.18 $ 14.57 $ 10.00
-------- -------- ------- ------- ------- -------
Investment Activities
Net investment loss.... (0.11) (0.22) (0.20) (0.11) (0.17) (0.07)
Net realized and
unrealized gain (loss)
on investments......... 18.07 7.78 (5.32) 2.47 6.78 4.64
-------- -------- ------- ------- ------- -------
Total from Investment
Activities............ 17.96 7.56 (5.52) 2.36 6.61 4.57
-------- -------- ------- ------- ------- -------
Distributions
Net realized gains..... (3.00) -- -- -- -- --
In excess of net
realized gains......... -- -- (0.31) (0.02) -- --
-------- -------- ------- ------- ------- -------
Total Distributions... (3.00) -- (0.31) (0.02) -- --
-------- -------- ------- ------- ------- -------
Net Asset Value, End of
Period.................. $ 40.21 $ 25.25 $ 17.69 $ 23.52 $ 21.18 $ 14.57
======== ======== ======= ======= ======= =======
Total Return............ 75.41%(b) 42.66% (23.62%) 11.17% 45.37% 45.70%(b)
Ratios/Supplementary
Data:
Net Assets, End of
Period (000)........... $199,171 $105,725 $65,180 $58,660 $36,373 $16,962
Ratio of expenses to
average net assets..... 1.35% (c) 1.54% 1.61% 1.64% 1.79% 2.33% (c)
Ratio of net investment
loss to average net
assets................. (0.67%)(c) (0.98%) (1.11%) (1.04%) (1.00%) (1.34%)(c)
Ratio of expenses to
average net assets*.... 1.35% (c) 1.55% 1.61% 1.64% 1.79% 2.24% (c)
Ratio of net investment
loss to average net
assets*................ (0.67%)(c) (0.98%) (1.11%) (1.04%) (1.00%) (1.43%)(c)
Portfolio turnover
(d).................... 99.12% (b) 184.39% 157.44% 80.66% 71.62% 46.97% (b)
</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 distinguising between classes of shares issued.
See notes to financial statements
-124-
[LOGO OF BB&T FUNDS]
<PAGE>
INTERNATIONAL EQUITY FUND
Class A Shares
Financial Highlights
<TABLE>
<CAPTION>
For the six For the For the January 2,
months ended year ended year ended 1997 to
March 31, September 30, September 30, September 30,
2000 1999 1998 1997 (a)
------------ ------------- ------------- -------------
(Unaudited)
<S> <C> <C> <C> <C>
Net Asset Value,
Beginning of Period..... $12.48 $ 9.91 $11.24 $10.00
------ ------ ------ ------
Investment Activities
Net investment income
(loss)................. (0.04) (0.01) 0.03 0.03
Net realized and
unrealized gain (loss)
on investments and
foreign currency
transactions........... 2.66 2.78 (1.09) 1.25
------ ------ ------ ------
Total from Investment
Activities............ 2.62 2.77 (1.06) 1.28
------ ------ ------ ------
Distributions
Net investment income.. -- (0.03) (0.03) (0.02)
Net realized gains..... (0.63) (0.17) (0.23) --
In excess of net
investment income...... -- -- (0.01) (0.02)
------ ------ ------ ------
Total Distributions... (0.63) (0.20) (0.27) (0.04)
------ ------ ------ ------
Net Asset Value, End of
Period.................. $14.47 $12.48 $ 9.91 $11.24
====== ====== ====== ======
Total Return (excludes
sales charge)........... 21.35% (b) 28.33% (9.60%) 12.84% (b)
Ratios/Supplementary
Data:
Net Assets, End of
Period (000)........... $2,898 $1,906 $1,314 $ 833
Ratio of expenses to
average net assets..... 1.71% (c) 1.81% 1.75% 1.97% (c)
Ratio of net investment
income (loss) to
average net assets..... (0.68%)(c) (0.07%) 0.26% 0.14% (c)
Ratio of expenses to
average net assets*.... 1.96% (c) 2.06% 2.01% 2.24% (c)
Ratio of net investment
income (loss) to
average net assets*.... (0.93%)(c) (0.32%) 0.00% (0.13%)(c)
Portfolio turnover
(d).................... 87.30% (b) 82.00% 53.27% 41.45% (b)
</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.
See notes to financial statements
-125-
[LOGO OF BB&T FUNDS]
<PAGE>
INTERNATIONAL EQUITY FUND
Class B Shares
Financial Highlights
<TABLE>
<CAPTION>
For the six For the For the January 2,
months ended year ended year ended 1997 to
March 31, September 30, September 30, September 30,
2000 1999 1998 1997 (a)
------------ ------------- ------------- -------------
(Unaudited)
<S> <C> <C> <C> <C>
Net Asset Value,
Beginning of Period..... $12.34 $ 9.85 $11.23 $10.00
------ ------ ------ ------
Investment Activities
Net investment income
(loss)................. (0.08) (0.10) (0.04) (0.01)
Net realized and
unrealized gain (loss)
on investments and
foreign currency
transactions........... 2.61 2.77 (1.10) 1.26
------ ------ ------ ------
Total from Investment
Activities............ 2.53 2.67 (1.14) 1.25
------ ------ ------ ------
Distributions
Net investment income.. -- (0.01) -- --
Net realized gains..... (0.63) (0.17) (0.23) --
In excess of net
investment income...... -- -- (0.01) (0.02)
------ ------ ------ ------
Total Distributions... (0.63) (0.18) (0.24) (0.02)
------ ------ ------ ------
Net Asset Value, End of
Period.................. $14.24 $12.34 $ 9.85 $11.23
====== ====== ====== ======
Total Return (excludes
redemption charge)...... 20.85% (b) 27.46% (10.29%) 12.51% (b)
Ratios/Supplementary
Data:
Net Assets, End of
Period (000)........... $3,711 $2,378 $1,923 $1,179
Ratio of expenses to
average net assets..... 2.46% (c) 2.56% 2.50% 2.69% (c)
Ratio of net investment
income (loss) to
average net assets..... (1.44%)(c) (0.84%) (0.50%) (0.62%)(c)
Ratio of expenses to
average net assets*.... 2.46% (c) 2.56% 2.51% 2.74% (c)
Ratio of net investment
income (loss) to
average net assets*.... (1.44%)(c) (0.84%) (0.51%) (0.66%)(c)
Portfolio turnover
(d).................... 87.30% (b) 82.00% 53.27% 41.45% (b)
</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.
See notes to financial statements
-126-
[LOGO OF BB&T FUNDS]
<PAGE>
INTERNATIONAL EQUITY FUND
Trust Shares
Financial Highlights
<TABLE>
<CAPTION>
For the six For the For the January 2,
months ended year ended year ended 1997 to
March 31, September 30, September 30, September 30,
2000 1999 1998 1997 (a)
------------ ------------- ------------- -------------
(Unaudited)
<S> <C> <C> <C> <C>
Net Asset Value,
Beginning of Period..... $ 12.56 $ 9.95 $ 11.28 $ 10.00
-------- ------- ------- -------
Investment Activities
Net investment income
(loss)................. (0.03) 0.02 0.06 0.03
Net realized and
unrealized gain (loss)
on investments and
foreign currency
transactions........... 2.69 2.80 (1.10) 1.30
-------- ------- ------- -------
Total from Investment
Activities............ 2.66 2.82 (1.04) 1.33
-------- ------- ------- -------
Distributions
Net investment income.. -- (0.04) (0.06) (0.02)
Net realized gains..... (0.63) (0.17) (0.23) --
In excess of net
investment income...... -- -- -- (0.03)
-------- ------- ------- -------
Total Distributions... (0.63) (0.21) (0.29) (0.05)
-------- ------- ------- -------
Net Asset Value, End of
Period.................. $ 14.59 $ 12.56 $ 9.95 $ 11.28
======== ======= ======= =======
Total Return............ 21.54% (b) 28.70% (9.45%) 13.34%(b)
Ratios/Supplementary
Data:
Net Assets, End of
Period (000)........... $122,814 $97,447 $70,356 $52,373
Ratio of expenses to
average net assets..... 1.45% (c) 1.56% 1.50% 1.79%(c)
Ratio of net investment
income (loss) to
average net assets..... (0.44%)(c) 0.18% 0.50% 0.32%(c)
Ratio of expenses to
average net assets*.... 1.45% (c) 1.56% 1.51% 1.81%(c)
Ratio of net investment
income (loss) to
average net assets*.... (0.44%)(c) 0.18% 0.49% 0.30%(c)
Portfolio turnover
(d).................... 87.30% (b) 82.00% 53.27% 41.45%(b)
</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.
See notes to financial statements
-127-
[LOGO OF BB&T FUNDS]
<PAGE>
CAPITAL MANAGER CONSERVATIVE GROWTH FUND
Class A Shares
Financial Highlights
<TABLE>
<CAPTION>
For the six For the January 29,
months ended year ended 1998 to
March 31, September 30, September 30,
2000 1999 1998 (a)
------------ ------------- -------------
(Unaudited)
<S> <C> <C> <C>
Net Asset Value, Beginning of Peri-
od.................................. $10.39 $10.05 $10.09
------ ------ ------
Investment Activities
Net investment income.............. 0.19 0.30 0.19
Net realized and unrealized gain
(loss) on investments with
affiliates......................... 0.56 0.52 (0.01)
------ ------ ------
Total from Investment Activities.. 0.75 0.82 0.18
------ ------ ------
Distributions
Net investment income.............. (0.20) (0.31) (0.22)
Net realized gains................. (0.22) (0.17) --
------ ------ ------
Total Distributions............... (0.42) (0.48) (0.22)
------ ------ ------
Net Asset Value, End of Period...... $10.72 $10.39 $10.05
====== ====== ======
Total Return (excludes sales
charge)............................. 7.31%(b) 8.19% 1.89%(b)
Ratios/Supplementary Data:
Net Assets, End of Period (000).... $ 287 $ 532 $ 119
Ratio of expenses to average net
assets............................. 0.63%(c) 0.62% 0.83%(c)
Ratio of net investment income to
average net assets................. 3.65%(c) 2.95% 2.91%(c)
Ratio of expenses to average net
assets*............................ 1.53%(c) 1.07% 1.33%(c)
Ratio of net investment income to
average net assets*................ 2.75%(c) 2.49% 2.41%(c)
Portfolio turnover (d)............. 21.28%(b) 16.45% 4.28%
</TABLE>
----
The expense ratios noted do not include the effect of the expenses of the
underlying funds.
* 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.
See notes to financial statements
-128-
[LOGO OF BB&T FUNDS]
<PAGE>
CAPITAL MANAGER CONSERVATIVE GROWTH FUND
Class B Shares
Financial Highlights
<TABLE>
<CAPTION>
For the six January 29,
months ended 1999 to
March 31, September 30,
2000 1999 (a)
------------ -------------
(Unaudited)
<S> <C> <C>
Net Asset Value, Beginning of Period.............. $10.39 $10.54
------ ------
Investment Activities
Net investment income............................ 0.15 0.21
Net realized and unrealized gain (loss) on
investments with affiliates...................... 0.57 (0.15)
------ ------
Total from Investment Activities................ 0.72 0.06
------ ------
Distributions
Net investment income............................ (0.16) (0.21)
Net realized gains............................... (0.22) --
------ ------
Total Distributions............................. (0.38) (0.21)
------ ------
Net Asset Value, End of Period.................... $10.73 $10.39
====== ======
Total Return (excludes redemption charge)......... 7.03%(b) 0.59%(b)
Ratios/Supplementary Data:
Net Assets, End of Period (000).................. $ 132 $ 110
Ratio of expenses to average net assets.......... 1.39%(c) 1.35%(c)
Ratio of net investment income to average net
assets........................................... 2.88%(c) 3.92%(c)
Ratio of expenses to average net assets*......... 2.04%(c) 1.75%(c)
Ratio of net investment income to average net
assets*.......................................... 2.23%(c) 3.52%(c)
Portfolio turnover (d)........................... 21.28%(b) 16.45%
</TABLE>
----
The expense ratios noted do not include the effect of the expenses of the
underlying funds.
* 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.
See notes to financial statements
-129-
[LOGO OF BB&T FUNDS]
<PAGE>
CAPITAL MANAGER CONSERVATIVE GROWTH FUND
Trust Shares
Financial Highlights
<TABLE>
<CAPTION>
For the six For the October 2,
months ended year ended 1997 to
March 31, September 30, September 30,
2000 1999 1998 (a)
------------ ------------- -------------
(Unaudited)
<S> <C> <C> <C>
Net Asset Value, Beginning of
Period.............................. $ 10.43 $ 10.08 $ 10.00
------- ------- -------
Investment Activities
Net investment income.............. 0.21 0.32 0.32
Net realized and unrealized gain
(loss) on investments with
affiliates......................... 0.56 0.53 0.08
------- ------- -------
Total from Investment Activities.. 0.77 0.85 0.40
------- ------- -------
Distributions
Net investment income.............. (0.21) (0.33) (0.32)
Net realized gains................. (0.22) (0.17) --
------- ------- -------
Total Distributions............... (0.43) (0.50) (0.32)
------- ------- -------
Net Asset Value, End of Period...... $ 10.77 $ 10.43 $ 10.08
======= ======= =======
Total Return........................ 7.51%(b) 8.47% 3.95%(b)
Ratios/Supplementary Data:
Net Assets, End of Period (000).... $31,723 $32,590 $23,773
Ratio of expenses to average net
assets............................. 0.38%(c) 0.38% 0.47%(c)
Ratio of net investment income to
average net assets................. 3.86%(c) 3.15% 3.12%(c)
Ratio of expenses to average net
assets*............................ 1.03%(c) 0.58% 0.67%(c)
Ratio of net investment income to
average net assets*................ 3.21%(c) 2.95% 2.92%(c)
Portfolio turnover(d).............. 21.28%(b) 16.45% 4.28%
</TABLE>
----
The expense ratios noted do not include the effect of the expenses of the
underlying funds.
* 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.
See notes to financial statements
-130-
[LOGO OF BB&T FUNDS]
<PAGE>
CAPITAL MANAGER MODERATE GROWTH FUND
Class A Shares
Financial Highlights
<TABLE>
<CAPTION>
For the six For the January 29,
months ended year ended 1998 to
March 31, September 30, September 30,
2000 1999 1998 (a)
------------ ------------- -------------
(Unaudited)
<S> <C> <C> <C>
Net Asset Value, Beginning of
Period.............................. $10.65 $ 9.85 $10.01
------ ------ ------
Investment Activities
Net investment income.............. 0.17 0.22 0.15
Net realized and unrealized gain
(loss) on investments with
affiliates......................... 1.06 1.06 (0.15)
------ ------ ------
Total from Investment Activities.. 1.23 1.28 --
------ ------ ------
Distributions
Net investment income.............. (0.16) (0.23) (0.16)
Net realized gains................. (0.29) (0.25) --
------ ------ ------
Total Distributions............... (0.45) (0.48) (0.16)
------ ------ ------
Net Asset Value, End of Period...... $11.43 $10.65 $ 9.85
====== ====== ======
Total Return (excludes sales
charge)............................. 11.71%(b) 13.07% 0.10%(b)
Ratios/Supplementary Data:
Net Assets, End of Period (000).... $1,454 $1,635 $1,146
Ratio of expenses to average net
assets............................. 0.65%(c) 0.68% 0.93%(c)
Ratio of net investment income to
average net assets................. 2.80%(c) 1.93% 1.93%(c)
Ratio of expenses to average net
assets*............................ 1.55%(c) 1.13% 1.39%(c)
Ratio of net investment income to
average net assets*................ 1.90%(c) 1.48% 1.47%(c)
Portfolio turnover(d).............. 26.01%(b) 17.33% 4.85%
</TABLE>
----
The expense ratios noted do not include the effect of the expenses of the
underlying funds.
* 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.
See notes to financial statements
-131-
[LOGO OF BB&T FUNDS]
<PAGE>
CAPITAL MANAGER MODERATE GROWTH FUND
Class B Shares
Financial Highlights
<TABLE>
<CAPTION>
For the six January 29,
months ended 1999 to
March 31, September 30,
2000 1999 (a)
------------ -------------
(Unaudited)
<S> <C> <C>
Net Asset Value, Beginning of Period.............. $10.64 $10.64
------ ------
Investment Activities
Net investment income............................ 0.11 0.14
Net realized and unrealized gain on investments
with affiliates.................................. 1.07 --
------ ------
Total from Investment Activities................ 1.18 0.14
------ ------
Distributions
Net investment income............................ (0.13) (0.14)
Net realized gains............................... (0.29) --
------ ------
Total Distributions............................. (0.42) (0.14)
------ ------
Net Asset Value, End of Period.................... $11.40 $10.64
====== ======
Total Return (excludes redemption charge)......... 11.22%(b) 1.29%(b)
Ratios/Supplementary Data:
Net Assets, End of Period (000).................. $ 381 $ 197
Ratio of expenses to average net assets.......... 1.41%(c) 1.47%(c)
Ratio of net investment income to average net
assets........................................... 2.14%(c) 2.54%(c)
Ratio of expenses to average net assets*......... 2.06%(c) 1.78%(c)
Ratio of net investment income to average net
assets*.......................................... 1.49%(c) 2.23%(c)
Portfolio turnover(d)............................ 26.01%(b) 17.33%
</TABLE>
----
The expense ratios noted do not include the effect of the expenses of the
underlying funds.
* 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.
See notes to financial statements
-132-
[LOGO OF BB&T FUNDS]
<PAGE>
CAPITAL MANAGER MODERATE GROWTH FUND
Trust Shares
Financial Highlights
<TABLE>
<CAPTION>
For the six For the October 2,
months ended year ended 1997 to
March 31, September 30, September 30,
2000 1999 1998 (a)
------------ ------------- -------------
(Unaudited)
<S> <C> <C> <C>
Net Asset Value, Beginning of
Period.............................. $ 10.65 $ 9.85 $ 10.00
------- ------- -------
Investment Activities
Net investment income.............. 0.18 0.25 0.23
Net realized and unrealized gain
(loss) on investments with
affiliates......................... 1.07 1.05 (0.16)
------- ------- -------
Total from Investment Activities.. 1.25 1.30 0.07
------- ------- -------
Distributions
Net investment income.............. (0.18) (0.25) (0.22)
Net realized gains................. (0.29) (0.25) --
------- ------- -------
Total Distributions............... (0.47) (0.50) (0.22)
------- ------- -------
Net Asset Value, End of Period...... $ 11.43 $ 10.65 $ 9.85
======= ======= =======
Total Return........................ 11.85%(b) 13.34% 0.68%(b)
Ratios/Supplementary Data:
Net Assets, End of Period (000).... $28,856 $26,800 $21,682
Ratio of expenses to average net
assets............................. 0.40%(c) 0.43% 0.46%(c)
Ratio of net investment income to
average net assets................. 3.18%(c) 2.17% 2.21%(c)
Ratio of expenses to average net
assets*............................ 1.05%(c) 0.63% 0.66%(c)
Ratio of net investment income to
average net assets*................ 2.53%(c) 1.97% 2.01%(c)
Portfolio turnover(d).............. 26.01%(b) 17.33% 4.85%
</TABLE>
----
The expense ratios noted do not include the effect of the expenses of the
underlying funds.
* 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.
See notes to financial statements
-133-
[LOGO OF BB&T FUNDS]
<PAGE>
CAPITAL MANAGER GROWTH FUND
Class A Shares
Financial Highlights
<TABLE>
<CAPTION>
For the six For the January 29,
months ended year ended 1998 to
March 31, September 30, September 30,
2000 1999 1998 (a)
------------ ------------- -------------
(Unaudited)
<S> <C> <C> <C>
Net Asset Value, Beginning of
Period............................. $10.79 $ 9.67 $ 9.93
------ ------ ------
Investment Activities
Net investment income............. 0.12 0.15 0.10
Net realized and unrealized gain
(loss) on investments with
affiliates........................ 1.49 1.46 (0.26)
------ ------ ------
Total from Investment
Activities....................... 1.61 1.61 (0.16)
------ ------ ------
Distributions
Net investment income............. (0.13) (0.17) (0.10)
Net realized gains................ (0.36) (0.32) --
------ ------ ------
Total Distributions.............. (0.49) (0.49) (0.10)
------ ------ ------
Net Asset Value, End of Period..... $11.91 $10.79 $ 9.67
====== ====== ======
Total Return (excludes sales
charge)............................ 15.22%(b) 16.81% (1.45%)(b)
Ratios/Supplementary Data:
Net Assets, End of Period (000)... $1,351 $ 990 $ 276
Ratio of expenses to average net
assets............................ 0.68%(c) 0.69% 0.90%(c)
Ratio of net investment income to
average net assets................ 2.33%(c) 1.24% 1.16%(c)
Ratio of expenses to average net
assets*........................... 1.58%(c) 1.14% 1.38%(c)
Ratio of net investment income to
average net assets*............... 1.43%(c) 0.78% 0.68%(c)
Portfolio turnover(d)............. 25.19%(b) 17.93% 7.69%
</TABLE>
----
The expense ratios noted do not include the effect of the expenses of the
underlying funds.
* 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.
See notes to financial statements
-134-
[LOGO OF BB&T FUNDS]
<PAGE>
CAPITAL MANAGER GROWTH FUND
Class B Shares
Financial Highlights
<TABLE>
<CAPTION>
For the six January 29,
months ended 1999 to
March 31, September 30,
2000 1999 (a)
------------ -------------
(Unaudited)
<S> <C> <C>
Net Asset Value, Beginning of Period.............. $10.79 $10.69
------ ------
Investment Activities
Net investment income............................ 0.09 0.10
Net realized and unrealized gain (loss) on
investments with affiliates...................... 1.49 0.10
------ ------
Total from Investment Activities................ 1.58 0.20
------ ------
Distributions
Net investment income............................ (0.11) (0.10)
Net realized gains............................... (0.36) --
------ ------
Total Distributions............................. (0.47) (0.10)
------ ------
Net Asset Value, End of Period.................... $11.90 $10.79
====== ======
Total Return (excludes redemption charge)......... 14.89%(b) 1.87%(b)
Ratios/Supplementary Data:
Net Assets, End of Period (000).................. $1,093 $ 163
Ratio of expenses to average net assets.......... 1.44%(c) 1.94%(c)
Ratio of net investment income to average net
assets........................................... 1.53%(c) 1.16%(c)
Ratio of expenses to average net assets*......... 2.09%(c) 2.14%(c)
Ratio of net investment income to average net
assets*.......................................... 0.88%(c) 0.96%(c)
Portfolio turnover(d)............................ 25.19%(b) 17.93%
</TABLE>
----
The expense ratios noted do not include the effect of the expenses of the
underlying funds.
* 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.
See notes to financial statements
-135-
[LOGO OF BB&T FUNDS]
<PAGE>
CAPITAL MANAGER GROWTH FUND
Trust Shares
Financial Highlights
<TABLE>
<CAPTION>
For the six For the October 2,
months ended year ended 1997 to
March 31, September 30, September 30,
2000 1999 1998 (a)
------------ ------------- -------------
(Unaudited)
<S> <C> <C> <C>
Net Asset Value, Beginning of
Period............................. $ 10.79 $ 9.68 $ 10.00
------- ------- -------
Investment Activities
Net investment income............. 0.15 0.17 0.16
Net realized and unrealized gain
(loss) on investments with
affiliates........................ 1.48 1.45 (0.32)
------- ------- -------
Total from Investment
Activities....................... 1.63 1.62 (0.16)
------- ------- -------
Distributions
Net investment income............. (0.15) (0.19) (0.16)
Net realized gains................ (0.36) (0.32) --
------- ------- -------
Total Distributions.............. (0.51) (0.51) (0.16)
------- ------- -------
Net Asset Value, End of Period..... $ 11.91 $ 10.79 $ 9.68
======= ======= =======
Total Return....................... 15.36%(b) 16.96% (1.72%)(b)
Ratios/Supplementary Data:
Net Assets, End of Period (000)... $27,034 $24,063 $21,370
Ratio of expenses to average net
assets............................ 0.43%(c) 0.46% 0.47%(c)
Ratio of net investment income to
average net assets................ 2.59%(c) 1.43% 1.53%(c)
Ratio of expenses to average net
assets*........................... 1.08%(c) 0.66% 0.67%(c)
Ratio of net investment income to
average net assets*............... 1.94%(c) 1.23% 1.33%(c)
Portfolio turnover(d)............. 25.19%(b) 17.93% 7.69%
</TABLE>
----
The expense ratios noted do not include the effect of the expenses of the
underlying funds.
* 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.
See notes to financial statements
-136-
[LOGO OF BB&T FUNDS]
<PAGE>
BB&T Funds
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
3435 Stelzer Road
Columbus, OH 43219
LEGAL COUNSEL
Ropes & Gray
1301 K Street, N.W.
Suite 800 E.
Washington D.C. 20005
TRANSFER AGENT
BISYS Fund Services [GRAPHIC]
3435 Stelzer Road
Columbus, OH 43219
AUDITORS
KPMG LLP
Two Nationwide Plaza, Suite 1600
Columbus, OH 43215
----------------------------------
March 31, 2000
