SEMI-ANNUAL
FINANCIAL REPORT
STI CLASSIC VARIABLE TRUST
[GRAPHIC OMITTED]
JUNE 30, 1996
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STI Classic Variable Trust
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[GRAPHIC OMITTED]
<PAGE>
STATEMENT OF NET ASSETS
================================================================================
STI CLASSIC VARIABLE TRUST FUNDS JUNE 30, 1996 (UNAUDITED)
VALUE INCOME STOCK FUND
- -------------------------------------------------------------
MARKET
SHARES VALUE (000)
- -------------------------------------------------------------
COMMON STOCK (88.2%)
BANKS (6.8%)
AmSouth Bancorp 1,700 $ 61
Bank of Boston 1,500 74
Bankers Trust New York 2,000 148
Central Fidelity Banks 3,450 78
Crestar Financial 1,200 64
First American Bank 1,600 72
First American-Tennessee 1,500 63
Fleet Financial Group 3,000 131
Great Western Financial 2,900 69
Magna Group 2,600 62
Signet Banking 3,200 74
Summit Bancorp 1,970 69
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Total Banks 965
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CHEMICALS (6.9%)
Akzo 1,400 84
Ethyl 18,200 175
Imperial Chemical Industries 4,300 211
Lawter International 4,600 58
Nalco Chemical 6,900 217
Rohm & Haas 2,400 151
Witco Chemical 2,200 76
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Total Chemicals 972
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ELECTRICAL EQUIPMENT (1.8%)
General Signal 6,700 254
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ENERGY (7.9%)
Atlantic Richfield 1,000 119
Elf Aquitaine ADR 3,500 129
Occidental Petroleum 5,800 144
Pennzoil 3,100 143
Phillips Petroleum 3,700 155
Questar 3,600 122
Repsol 4,300 149
USX-Marathon Group 7,500 151
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Total Energy 1,112
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MARKET
SHARES VALUE (000)
- -------------------------------------------------------------
FINANCIAL - INSURANCE (6.3%)
American Financial Group 4,300 $ 130
American General 4,200 153
ITT Hartford Group 5,000 266
Lincoln National 4,200 194
Marsh & McLennan 1,500 145
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Total Financial - Insurance 888
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FOOD, BEVERAGE, TOBACCO &
HOUSEHOLD (16.7%)
BAT Industries ADR 17,200 272
ConAgra 4,900 222
Dean Foods 4,300 106
Dial 2,300 66
Grand Metropolitan ADR 11,500 308
Heinz (H.J.) 4,700 143
Lance 2,300 38
Masco 8,200 248
Maytag 5,600 117
McCormick 9,800 217
Philips Electronics ADR 7,100 232
Snap-On Tools 2,600 123
Unilever 900 131
Unilever ADR 1,700 137
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Total Food, Beverage, Tobacco &
Household 2,360
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HEALTHCARE (6.1%)
Bausch & Lomb 4,400 187
Bristol-Myers Squibb 3,100 279
Upjohn 5,100 226
Warner Lambert 3,100 171
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Total Healthcare 863
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MACHINERY (2.7%)
Cooper Industries 4,600 191
Tenneco 3,600 184
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Total Machinery 375
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1
<PAGE>
STATEMENT OF NET ASSETS
================================================================================
STI CLASSIC VARIABLE TRUST FUNDS JUNE 30, 1996 (UNAUDITED)
VALUE INCOME STOCK FUND--CONCLUDED
- -------------------------------------------------------------
MARKET
SHARES VALUE (000)
- -------------------------------------------------------------
MEDIA (5.3%)
American Greetings, Cl A 8,500 $ 233
Deluxe 3,500 124
Houghton Mifflin 2,700 134
McGraw-Hill 3,900 179
Reader's Digest, Cl A 1,700 72
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Total Media 742
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METALS & MINING (3.4%)
Allegheny Ludlum 8,100 153
Phelps Dodge 1,300 81
Reynolds Metals 3,900 203
USX-U.S. Steel Group 1,700 48
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Total Metals & Mining 485
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MISCELLANEOUS (3.7%)
ITT Industries* 11,600 291
Kelly Services, Cl A 3,500 102
Ogden 7,400 134
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Total Miscellaneous 527
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PAPER & PAPER PRODUCTS (3.9%)
International Paper 3,200 118
James River 7,800 206
Tambrands 5,600 229
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Total Paper & Paper Products 553
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RETAIL (1.9%)
J.C. Penney 2,500 131
May Department Stores 3,100 136
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Total Retail 267
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TECHNOLOGY (2.1%)
AMP 3,900 156
Xerox 2,600 139
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Total Technology 295
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TRANSPORTATION (1.3%)
Ryder System 6,400 180
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UTILITIES (11.4%)
Alltel 5,800 178
Central & South West 4,800 139
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SHARES/FACE MARKET
AMOUNT (000) VALUE (000)
- --------------------------------------------------------------
UTILITIES (CONTINUED)
Cinergy 5,300 $ 170
Frontier* 6,600 202
General Public Utilities 1,900 67
GTE 4,200 188
PacifiCorp 6,500 145
Southern New England Telecom 4,400 185
Sprint 3,100 130
Tele Denmark ADR 8,000 203
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Total Utilities 1,607
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Total Common Stock
(Cost $12,128) 12,445
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REPURCHASE AGREEMENT (10.0%)
Lehman Brothers 4.97%, dated 06/28/96,
matures 07/01/96, repurchase price
$1,419,880 (collateralized by U.S.
Treasury Note, par value $1,454,000,
6.25%, 02/15/03: total market value
$1,451,794) $1,419 1,419
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Total Repurchase Agreement
(Cost $1,419) 1,419
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Total Investments (98.2%)
(Cost $13,547) 13,864
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Other Assets and Liabilities, Net (1.8%) 257
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NET ASSETS:
Portfolio Shares (unlimited authorization -
no par value) based on 1,230,070
outstanding shares of beneficial interest 13,458
Accumulated net realized gain on
investments 346
Unrealized appreciation on investments 317
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Total Net Assets (100.0%) $14,121
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Net Asset Value, Offering Price and
Redemption Price Per Share $ 11.48
=======
ADR -- AMERICAN DEPOSITORY RECEIPT
CL -- CLASS
*NON-INCOME PRODUCING
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.
2
<PAGE>
STATEMENT OF NET ASSETS
================================================================================
STI CLASSIC VARIABLE TRUST FUNDS JUNE 30, 1996 (UNAUDITED)
MID-CAP EQUITY FUND (FORMERLY THE AGGRESSIVE GROWTH FUND)
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MARKET
SHARES VALUE (000)
- ---------------------------------------------------------------
COMMON STOCK (84.1%)
AEROSPACE & DEFENSE (2.7%)
General Dynamics 800 $ 50
Litton Industries* 2,000 87
Sundstrand 2,100 77
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Total Aerospace & Defense 214
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AUTOMOTIVE (0.9%)
Dana 1,000 31
Magna International, Cl A 900 41
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Total Automotive 72
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BANKS (6.7%)
Bancorp Hawaii 800 29
Bank of Boston * 1,300 64
Cal Fed Bancorp* 2,500 46
Crestar Financial 800 43
First Security 1,850 44
Northern Trust 1,100 64
Regions Financial 300 14
Republic New York 1,900 118
Southtrust 2,500 70
Summit Bancorp 1,200 42
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Total Banks 534
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BUILDING (1.2%)
Clayton Homes 1,050 21
Foster Wheeler 1,600 72
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Total Building 93
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CHEMICALS (1.9%)
Georgia Gulf * 600 18
IMC Fertilizer Group 1,200 45
Lyondell Petrochemical 1,200 29
Olin 300 27
Witco Chemical 1,100 38
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Total Chemicals 157
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MARKET
SHARES VALUE (000)
- --------------------------------------------------------------
ELECTRICAL EQUIPMENT (5.3%)
Analog Devices * 3,100 $ 79
Atmel* 1,800 54
Avnet 1,000 42
Diebold 1,300 63
General Signal 1,700 64
Hubbell, Cl B 800 53
Linear Technology 1,200 36
Solectron* 1,000 38
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Total Electrical Equipment 429
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ENERGY (4.6%)
Anadarko Petroleum 1,500 87
Apache 1,000 33
Kerr-McGee 1,100 67
Noble Affiliates 1,700 64
Questar 1,300 44
Tidewater 900 39
Valero Energy 1,600 40
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Total Energy 374
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FINANCIAL - INSURANCE (7.1%)
AFLAC 1,500 45
Aon 1,600 81
Capital Re 500 18
CMAC Investment 1,300 75
Equifax 1,500 39
Healthcare Compare* 900 44
Progressive of Ohio 1,400 65
Sunamerica 1,200 68
Transatlantic Holdings 700 49
Unum 1,500 93
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Total Financial - Insurance 577
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FINANCIAL SERVICES (2.4%)
Bear Stearns 1,660 39
Charles Schwab 1,500 37
Franklin Resources 1,400 85
Green Tree Financial 1,100 34
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Total Financial Services 195
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3
<PAGE>
STATEMENT OF NET ASSETS
================================================================================
STI CLASSIC VARIABLE TRUST FUNDS JUNE 30, 1996 (UNAUDITED)
MID-CAP EQUITY FUND (FORMERLY THE AGGRESSIVE GROWTH FUND)--CONCLUDED
- --------------------------------------------------------------
MARKET
SHARES VALUE (000)
- --------------------------------------------------------------
FOOD, BEVERAGE, TOBACCO &
HOUSEHOLD (3.4%)
Dial 1,500 $ 43
Dole Food 1,200 52
First Brands 2,000 54
IBP 2,000 55
McCormick 1,500 33
Tyson Foods 1,500 41
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Total Food, Beverage, Tobacco &
Household 278
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HEALTHCARE (8.8%)
Apria Healthcare Group* 1,800 56
Biogen * 600 33
Cardinal Health 700 50
Chiron* 400 39
Elan* 700 40
Healthcare & Retirement 1,550 37
HEALTHSOUTH Rehabilitation* 2,600 94
Ivax 2,900 46
Medaphis* 1,000 40
Mylan Laboratories 1,300 22
Nellcor* 300 15
Olsten 1,000 29
Pacificare Health Systems, Cl B* 700 47
Scherer RP* 1,300 59
Stryker 1,400 32
Tenet Healthcare* 1,900 41
Teva Pharmaceuticals ADR 900 34
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Total Healthcare 714
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LEISURE (2.6%)
Circus Circus Enterprises* 1,400 57
HFS* 800 56
Mirage Resorts* 800 43
Wendy's International 3,000 56
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Total Leisure 212
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MACHINERY (2.4%)
Agco 1,500 42
American Standard* 2,100 69
Goulds Pumps 800 21
York International 1,200 62
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Total Machinery 194
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- ---------------------------------------------------------------
MARKET
SHARES VALUE (000)
- ---------------------------------------------------------------
MEDIA (3.4%)
American Greetings, Cl A 1,800 $ 49
Belo, Cl A 1,400 52
Interpublic Group 800 38
New York Times, Cl A 2,500 82
Omnicom Group 800 37
TCA Cable Television 500 15
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Total Media 273
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METALS & MINING (1.5%)
Alumax* 900 27
Freeport McMoran 300 11
Potash of Saskatchewan ADR 800 53
Trinity Industries 800 27
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Total Metals & Mining 118
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MISCELLANEOUS (2.0%)
CUC International* 1,000 36
Fisher Scientific International 1,400 53
Molten Metal Technology* 1,200 35
Tyco Labs 900 37
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Total Miscellaneous 161
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PAPER & PAPER PRODUCTS (1.2%)
Bowater 400 15
Sonoco Products 1,100 31
Tambrands 500 20
Westvaco 1,100 33
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Total Paper & Paper Products 99
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RETAIL (7.0%)
Dollar General 1,050 31
Federated Department Stores* 1,600 55
Hannaford Brothers 2,000 65
Kohls* 1,100 40
Lone Star Steakhouse & Saloon* 800 30
Nine West Group* 700 36
Office Depot* 2,100 43
Outback Steakhouse* 2,400 83
Price/Costco* 3,200 69
Staples* 3,950 77
Sunglass Hut International* 1,500 37
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Total Retail 566
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4
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MARKET
SHARES VALUE (000)
- ---------------------------------------------------------------
TECHNOLOGY (6.8%)
Adobe Systems 1,200 $ 43
America Online* 1,300 57
Cadence Design Systems* 550 19
Electronic Arts* 800 21
EMC Corporation Mass* 1,800 33
Fiserv* 600 18
Informix* 2,500 56
Mentor Graphics* 1,200 19
Network General* 1,800 39
Parametric Technology* 1,700 74
Reynolds & Reynolds 500 27
Seagate Technology* 1,400 63
Symantec* 1,400 17
Varian Associates 1,000 52
Verifone* 300 13
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Total Technology 551
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TELEPHONES & TELECOMMUNICATION (5.1%)
360 Communications* 2,400 58
ADC Telecommunications* 2,000 90
Allen Group 600 13
Cabletron Systems* 800 55
Molex 1,000 32
Nextel Communications, Cl A* 4,300 82
Stratacom* 500 28
U.S. Robotics* 600 51
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Total Telephones & Telecommunication 409
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TRANSPORTATION (1.3%)
Atlantic Southeast Airlines 1,900 54
Illinois Central 1,800 51
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Total Transportation 105
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UTILITIES (5.8%)
AES* 1,400 40
Century Telephone Enterprises 1,900 61
Frontier 2,700 83
Illinova 2,300 66
- --------------------------------------------------------------
SHARES/FACE MARKET
AMOUNT (000) VALUE (000)
- --------------------------------------------------------------
UTILITIES (CONTINUED)
Nipsco Industries 1,400 $ 56
Southern New England Telecom 1,500 63
Telephone & Data Systems 700 32
Wisconsin Energy 2,500 72
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Total Utilities 473
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Total Common Stock
(Cost $6,687) 6,798
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REPURCHASE AGREEMENT (16.9%)
Lehman Brothers 4.97%, dated
06/28/96, matures 07/01/96,
repurchase price $1,363,864
(collateralized by U.S. Treasury
Note, par value $1,396,000, 6.25%,
02/15/03: total market value
$1,394,519) $1,363 1,363
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Total Repurchase Agreement
(Cost $1,363) 1,363
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Total Investments (101.0%)
(Cost $8,051) 8,161
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Other Assets and Liabilities, Net (-1.0%) (75)
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NET ASSETS:
Portfolio Shares (unlimited authorization -
no par value) based on 742,718 outstanding
shares of beneficial interest 7,783
Accumulated net realized gain on
investments 193
Unrealized appreciation on investments 110
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Total Net Assets (100.0%) $ 8,086
=======
Net Asset Value, Offering and Redemption
Price Per Share $ 10.89
=======
ADR -- AMERICAN DEPOSITORY RECEIPT
CL -- CLASS
*NON-INCOME PRODUCING
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.
5
<PAGE>
STATEMENT OF NET ASSETS
================================================================================
STI CLASSIC VARIABLE TRUST FUNDS JUNE 30, 1996 (UNAUDITED)
CAPITAL GROWTH FUND
- --------------------------------------------------------------
MARKET
SHARES VALUE (000)
- --------------------------------------------------------------
COMMON STOCK (88.1%)
AEROSPACE & DEFENSE (5.1%)
Allied Signal 3,000 $ 171
General Dynamics 1,000 62
Lockheed Martin 900 76
Textron 1,400 112
United Technologies 1,300 150
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Total Aerospace & Defense 571
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AUTOMOTIVE (1.3%)
General Motors 1,000 52
Goodyear Tire & Rubber 1,900 92
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Total Automotive 144
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BANKS (3.5%)
Banc One 500 17
Barnett Banks of Florida 1,300 79
BayBanks 1,000 108
Chase Manhattan Bank 1,820 129
Norwest 200 7
PNC Bank 1,700 51
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Total Banks 391
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BUILDING (1.2%)
American Standard* 1,300 43
Fluor 700 46
Foster Wheeler 1,100 49
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Total Building 138
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CHEMICALS (2.9%)
Air Products & Chemicals 500 29
Dow Chemical 800 61
E.I. du Pont de Nemours 1,300 103
Hercules 2,000 111
Morton International 600 22
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Total Chemicals 326
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ELECTRICAL EQUIPMENT (5.1%)
Emerson Electric 1,300 117
General Electric 3,800 329
General Signal 3,400 129
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Total Electrical Equipment 575
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- --------------------------------------------------------------
MARKET
SHARES VALUE (000)
- --------------------------------------------------------------
ENERGY (5.2%)
Amoco 1,200 $ 87
Atlantic Richfield 300 36
Consolidated Natural Gas 1,300 68
Dresser Industries 1,200 35
Enron 900 37
Halliburton 1,700 94
Kerr-McGee 1,000 61
Mobil 1,000 112
Texaco 500 42
Union Texas Petroleum Holdings 600 12
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Total Energy 584
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FINANCIAL - INSURANCE (2.9%)
American International Group 1,500 148
Chubb 800 40
General Re 100 15
ITT Hartford Group 1,300 69
TIG Holdings 2,000 58
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Total Financial - Insurance 330
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FINANCIAL - OTHER (2.3%)
FHLMC 800 68
MGIC Investment 1,000 56
PMI Group 1,100 47
Travelers 1,900 87
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Total Financial - Other 258
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FOOD, BEVERAGE, TOBACCO &
HOUSEHOLD (11.1%)
Bush Boake Allen* 500 11
ConAgra 1,000 45
CPC International 1,400 101
Duracell International 1,000 43
Gillette 1,000 62
Heinz (H.J.) 3,100 94
Newell 500 15
PepsiCo 4,500 159
Philip Morris 2,200 229
Procter & Gamble 2,100 190
Ralston-Ralston Purina Group 700 45
6
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================================================================================
- --------------------------------------------------------------
MARKET
SHARES VALUE (000)
- --------------------------------------------------------------
FOOD, BEVERAGE, TOBACCO &
HOUSEHOLD (CONTINUED)
RJR Nabisco 800 $ 25
Sara Lee 1,800 58
Sysco 2,800 96
UST 2,200 75
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Total Food, Beverage, Tobacco &
Household 1,248
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HEALTHCARE (11.6%)
Allergan 1,200 47
American Home Products 1,600 96
Astra AB, Cl A ADR 1,000 44
Baxter International 700 33
Boston Scientific * 1,100 50
Bristol-Myers Squibb 700 63
Caremark International 1,000 25
Columbia/HCA Healthcare 3,500 187
Healthcare & Retirement* 1,200 29
HEALTHSOUTH Rehabilitation* 1,900 68
Johnson & Johnson 2,850 141
Medtronic 700 39
Merck 2,400 155
SmithKline Beecham PLC 2,200 120
Tenet Healthcare* 4,000 86
Upjohn 1,300 58
Vencor* 2,100 64
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Total Healthcare 1,305
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LEISURE (6.2%)
Carnival 5,000 144
ITT* 1,400 93
Mattel 2,250 64
McDonald's 3,600 168
Viacom, Cl B* 3,400 132
Walt Disney 919 58
Wendy's International 2,000 37
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Total Leisure 696
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MACHINERY (0.6%)
Deere 1,800 72
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- --------------------------------------------------------------
MARKET
SHARES VALUE (000)
- --------------------------------------------------------------
MEDIA (1.4%)
McGraw-Hill 1,100 $ 50
New York Times, Cl A 1,600 52
Tele-Communications, Cl A* 3,000 54
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Total Media 156
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METALS & MINING (0.5%)
Aluminum of America 1,000 57
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MISCELLANEOUS (1.4%)
Eastman Kodak 800 62
ITT Industries 400 10
Tyco Labs 2,100 86
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Total Miscellaneous 158
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PAPER & PAPER PRODUCTS (0.7%)
International Paper* 1,800 79
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RETAIL (6.7%)
Federated Department Stores* 1,900 65
General Nutrition* 1,100 19
Home Depot 2,800 151
Intimate Brands 1,100 25
Kroger* 1,800 71
Marriott 1,600 86
Melville 600 24
Office Depot* 2,100 43
Price/Costco* 2,300 50
Safeway* 800 26
Staples* 2,500 49
Wal-Mart Stores 5,800 147
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Total Retail 756
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SERVICE (1.7%)
Browning-Ferris Industries 2,000 58
Molten Metal Technology* 2,900 86
WMX Technologies 1,500 49
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Total Service 193
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7
<PAGE>
STATEMENT OF NET ASSETS
================================================================================
STI CLASSIC VARIABLE TRUST FUNDS JUNE 30, 1996 (UNAUDITED)
CAPITAL GROWTH FUND--CONCLUDED
- --------------------------------------------------------------
MARKET
SHARES VALUE (000)
- --------------------------------------------------------------
TECHNOLOGY (10.3%)
AMP 1,100 $ 44
Arrow Electronics* 900 39
Automatic Data Processing 1,500 58
Bay Networks* 2,000 52
Cisco Systems* 900 51
Electronic Data Systems 3,000 161
First Data 500 40
Hewlett Packard 1,200 120
Intel 800 59
IBM 900 89
Microsoft* 800 96
Motorola 1,900 119
Oracle Systems* 2,300 91
Scientific-Atlanta 1,000 16
Varian 1,100 57
Xerox 1,200 64
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Total Technology 1,156
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TRANSPORTATION (1.8%)
Burlington Northern Santa Fe 1,100 89
Conrail 500 33
Southwest Airlines 1,000 29
Union Pacific 800 56
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Total Transportation 207
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UTILITIES (4.6%)
Airtouch Communications* 1,700 48
Alltel 600 18
AT&T 4,700 291
BellSouth 2,400 102
L.M. Ericsson Telephone ADR 2,800 60
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Total Utilities 519
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Total Common Stock
(Cost $9,422) 9,919
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- --------------------------------------------------------------
FACE AMOUNT MARKET
(000) VALUE (000)
- --------------------------------------------------------------
REPURCHASE AGREEMENT (11.9%)
Morgan Stanley 5.29%, dated
06/28/96, matures 07/01/96,
repurchase price $1,335,154
(collateralized by FNMA
obligation, par value $1,989,000,
6.50%, 06/25/08: total market value
$1,576,935) $1,335 $ 1,335
-------
Total Repurchase Agreement
(Cost $1,335) 1,335
-------
Total Investments (100.0%)
(Cost $10,756) 11,254
-------
Other Assets and Liabilities, Net (0.0%) 1
-------
NET ASSETS:
Portfolio Shares (unlimited authorization -
no par value) based on 954,175 outstanding
shares of beneficial interest 10,447
Accumulated net realized gain on
investments 310
Unrealized appreciation on investments 498
-------
Total Net Assets (100.0%) $11,255
=======
Net Asset Value, Offering and Redemption
Price Per Share $ 11.80
=======
ADR -- AMERICAN DEPOSITORY RECEIPT
CL -- CLASS
FHLMC -- FEDERAL HOME LOAN MORTGAGE CORPORATION
FNMA -- FEDERAL NATIONAL MORTGAGE ASSOCIATION
PLC -- PUBLIC LIMITED COMPANY
*NON-INCOME PRODUCING
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.
8
<PAGE>
STATEMENT OF NET ASSETS
================================================================================
STI CLASSIC VARIABLE TRUST FUNDS JUNE 30, 1996 (UNAUDITED)
INVESTMENT GRADE BOND FUND
- --------------------------------------------------------------
FACE AMOUNT MARKET
(000) VALUE (000)
- --------------------------------------------------------------
U.S. TREASURY OBLIGATIONS (68.2%)
U.S. Treasury Bonds
7.500%, 11/15/16 $ 400 $ 420
8.125%, 08/15/19 650 729
U.S. Treasury Notes
5.625%, 01/31/98 1,000 994
7.500%, 10/31/99 900 929
7.500%, 11/15/01 100 104
7.500%, 05/15/02 650 681
5.750%, 08/15/03 400 381
-------
Total U.S. Treasury Obligations
(Cost $4,273) 4,238
-------
CORPORATE OBLIGATIONS (24.2%)
ABN Amro Bank
7.550%, 06/28/06 150 152
Capital One Bank, MTN
6.490%, 08/15/97 150 150
Ford Motor Credit, MTN
6.110%, 12/28/01 100 96
General Electric Capital
6.660%, 05/01/18 150 149
Household Finance, MTN
7.150%, 06/15/00 250 253
Merrill Lynch
7.375%, 05/15/06 150 149
Merrill Lynch, Ser B, MTN
6.520%, 06/22/98 250 251
Salomon, MTN
7.020%, 09/25/98 150 151
Societe Generale
7.400%, 06/01/06 150 150
-------
Total Corporate Obligations
(Cost $1,501) 1,501
-------
- --------------------------------------------------------------
FACE AMOUNT MARKET
(000) VALUE (000)
- --------------------------------------------------------------
U.S. GOVERNMENT AGENCY MORTGAGE-
BACKED BONDS (3.7%)
GNMA
6.500%, 12/15/23 $243 $ 227
-------
Total U.S. Government Agency Mortgage-
Backed Bonds
(Cost $231) 227
-------
REPURCHASE AGREEMENT (2.3%)
Lehman Brothers 4.97%, dated 06/28/96,
matures 07/01/96, repurchase price
$146,808 (collateralized by U.S.
Treasury Note, par value $150,300,
6.25%, 02/15/03: total market
value $150,109) 147 147
-------
Total Repurchase Agreement
(Cost $147) 147
-------
Total Investments (98.4%)
(Cost $6,151) 6,113
-------
Other Assets and Liabilities, Net (1.6%) 97
-------
NET ASSETS:
Portfolio Shares (unlimited authorization -
no par value) based on 633,135 outstanding
shares of beneficial interest 6,302
Accumulated net realized loss on
investments (54)
Unrealized depreciation on investments (38)
-------
Total Net Assets (100.0%) $6,210
=======
Net Asset Value, Offering and Redemption
Price Per Share $ 9.81
=======
GNMA -- GOVERNMENT NATIONAL MORTGAGE ASSOCIATION
MTN -- MEDIUM TERM NOTE
SER -- SERIES
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.
9
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STATEMENT OF OPERATIONS
================================================================================
STI CLASSIC VARIABLE TRUST FUNDS FOR THE SIX-MONTH PERIOD ENDED JUNE 30, 1996
(UNAUDITED)
VALUE
INCOME MID-CAP CAPITAL INVESTMENT
STOCK EQUITY GROWTH GRADE
FUND FUND FUND BOND FUND
-------- -------- -------- ----------
01/01/96- 01/01/96- 01/01/96- 01/01/96-
06/30/96 06/30/96 06/30/96 06/30/96
(000) (000) (000) (000)
-------- -------- -------- --------
Investment Income:
Interest Income ................. $ 22 $ 20 $ 43 $ 132
Dividend Income ................. 121 26 47 --
----- ----- ----- -----
Total Investment Income ..... 143 46 90 132
----- ----- ----- -----
Expenses:
Investment Advisory Fees ........ 32 30 39 16
Investment Advisory Fees Waived . (32) (30) (39) (16)
Reimbursement from Advisor ...... (38) (36) (33) (46)
Administrator Fees .............. 31 31 31 31
Custody Fees .................... 9 7 8 6
Transfer Agent Fees ............. 8 7 7 7
Professional Fees ............... 6 4 6 3
Legal Fees ...................... 6 4 5 4
Trustee Fees .................... 3 2 2 2
Printing Expenses ............... 12 10 11 8
Amortization of Deferred
Organization Costs ............ 1 1 1 1
----- ----- ----- -----
Total Expenses .............. 38 30 38 16
----- ----- ----- -----
Net Investment Income ..... 105 16 52 116
----- ----- ----- -----
Net Realized Gain (Loss) on
Investments .................. 342 184 323 (54)
Net Unrealized Appreciation
(Depreciation) on Investments: 120 44 302 (108)
----- ----- ----- -----
Net Realized and Unrealized
Gain (Loss) on Investments 462 228 625 (162)
----- ----- ----- -----
Increase (Decrease) in Net Assets
from Operations ................. $ 567 $ 244 $ 677 $ (46)
===== ===== ===== =====
Amounts designated as "--" are either $0 or have been rounded to $0.
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.
11
<PAGE>
STATEMENT OF CHANGES IN NET ASSETS
================================================================================
STI CLASSIC VARIABLE TRUST FUNDS FOR THE SIX-MONTH PERIOD ENDED JUNE 30, 1996
(UNAUDITED)
<TABLE>
<CAPTION>
VALUE INCOME STOCK
FUND MID-CAP EQUITY FUND
--------------------- ---------------------
01/01/96- 10/02/95* 01/01/96- 10/02/95*-
06/30/96 12/31/95 06/30/96 12/31/95
(000) (000) (000) (000)
-------- -------- -------- ---------
<S> <C> <C> <C> <C>
Investment Activities:
Net Investment Income ..................... $ 105 $ 23 $ 16 $ 16
Net Realized Gain (Loss) on Investments ... 342 5 184 9
Net Change in Unrealized Appreciation
(Depreciation) on Investments .......... 120 197 44 66
-------- -------- -------- --------
Increase (Decrease) in Net Assets Resulting
from Operations .......................... 567 225 244 91
-------- -------- -------- --------
Distributions to Shareholders:
Net Investment Income ..................... (106) (23) (16) (16)
Capital Gains ............................. -- -- -- --
-------- -------- -------- --------
Total Distributions ................... (106) (23) (16) (16)
-------- -------- -------- --------
Capital Transactions:
Proceeds from Shares Issued ............... 9,563 3,790 4,459 3,318
Reinvestment of Cash Distributions ........ 106 23 16 16
Cost of Shares Repurchased ................ (24) -- (26) --
-------- -------- -------- --------
Increase in Net Assets from Share
Transactions ............................ 9,645 3,813 4,449 3,334
-------- -------- -------- --------
Total Increase in Net Assets .......... 10,106 4,015 4,677 3,409
-------- -------- -------- --------
Net Assets:
Beginning of Period ....................... 4,015 -- 3,409 --
-------- -------- -------- --------
End of Period ............................. $ 14,121 $ 4,015 $ 8,086 $ 3,409
======== ======== ======== ========
Shares Issued and Redeemed:
Shares Issued ............................. 847 374 412 330
Shares Issued in Lieu of Cash Distributions 9 2 2 2
Shares Redeemed ........................... (2) -- (3) --
-------- -------- -------- --------
Net Share Transactions .................. 854 376 411 332
======== ======== ======== ========
</TABLE>
<TABLE>
<CAPTION>
INVESTMENT GRADE BOND
CAPITAL GROWTH FUND
---------------------- ----------------------
01/01/96- 10/02/95*- 01/01/96- 10/02/95*-
06/30/96 12/31/95 06/30/96 12/31/95
(000) (000) (000) (000)
-------- ---------- --------- ----------
<S> <C> <C> <C> <C>
Investment Activities:
Net Investment Income ..................... $ 52 $ 13 $ 116 $ 35
Net Realized Gain (Loss) on Investments ... 323 (13) (54) --
Net Change in Unrealized Appreciation
(Depreciation) on Investments .......... 302 196 (108) 70
-------- -------- -------- --------
Increase (Decrease) in Net Assets Resulting
from Operations .......................... 677 196 (46) 105
-------- -------- -------- --------
Distributions to Shareholders:
Net Investment Income ..................... (52) (13) (116) (35)
Capital Gains ............................. -- -- -- --
-------- -------- -------- --------
Total Distributions ................... (52) (13) (116) (35)
-------- -------- -------- --------
Capital Transactions:
Proceeds from Shares Issued ............... 6,823 3,582 3,220 3,010
Reinvestment of Cash Distributions ........ 52 13 116 35
Cost of Shares Repurchased ................ (23) -- (79) --
-------- -------- -------- --------
Increase in Net Assets from Share
Transactions ............................ 6,852 3,595 3,257 3,045
-------- -------- -------- --------
Total Increase in Net Assets .......... 7,477 3,778 3,095 3,115
-------- -------- -------- --------
Net Assets:
Beginning of Period ....................... 3,778 -- 3,115 --
-------- -------- -------- --------
End of Period ............................. $ 11,255 $ 3,778 $ 6,210 $ 3,115
======== ======== ======== ========
Shares Issued and Redeemed:
Shares Issued ............................. 597 354 325 301
Shares Issued in Lieu of Cash Distributions 5 1 12 3
Shares Redeemed ........................... (2) -- (8) --
-------- -------- -------- --------
Net Share Transactions .................. 600 355 329 304
======== ======== ======== ========
<FN>
*Commencement of operations
Amounts designated as "--" are either $0 or have been rounded to $0.
</FN>
</TABLE>
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.
12 & 13
<PAGE>
FINANCIAL HIGHLIGHTS
================================================================================
STI CLASSIC VARIABLE TRUST FUNDS
FOR THE SIX-MONTH PERIOD ENDED JUNE 30, 1996 (UNAUDITED)
<TABLE>
<CAPTION>
NET ASSET NET REALIZED DISTRIBUTIONS
VALUE NET AND UNREALIZED FROM NET DISTRIBUTIONS NET ASSET NET ASSETS
BEGINNING INVESTMENT GAINS (LOSSES) INVESTMENT FROM REALIZED VALUE END TOTAL END OF
OF PERIOD INCOME ON INVESTMENTS INCOME CAPITAL GAINS OF PERIOD RETURN(2) PERIOD (000)
---------- ---------- --------------- ------------- ------------- --------- --------- ------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
VALUE INCOME STOCK FUND
1996 $10.67 $0.12 $0.81 $(0.12) $-- $11.48 8.69% $14,121
1995 (1) 10.00 0.06 0.67 (0.06) -- 10.67 7.31%(DAGGER) 4,015
MID-CAP EQUITY FUND
1996 $10.27 $0.03 $0.62 $(0.03) $-- $10.89 6.30% $ 8,086
1995 (1) 10.00 0.05 0.27 (0.05) -- 10.27 3.19%(DAGGER) 3,409
CAPITAL GROWTH FUND
1996 $10.66 $0.07 $1.14 $(0.07) $-- $11.80 11.35% $11,255
1995 (1) 10.00 0.04 0.66 (0.04) -- 10.66 6.96%(DAGGER) 3,778
INVESTMENT GRADE BOND FUND
1996 $10.25 $0.26 $(0.44) $(0.26) $-- $ 9.81 (1.70%) $ 6,210
1995 (1) 10.00 0.13 0.25 (0.13) -- 10.25 3.68%(DAGGER) 3,115
</TABLE>
<TABLE>
<CAPTION>
RATIO OF
RATIO RATIO OF NET INVESTMENT
OF NET EXPENSES TO INCOME (LOSS) TO
RATIO OF INVESTMENT AVERAGE NET AVERAGE NET
EXPENSES INCOME ASSETS (EXCLUDING ASSETS (EXCLUDING PORTFOLIO AVERAGE
TO AVERAGE TO AVERAGE WAIVERS AND WAIVERS AND TURNOVER COMMISSION
NET ASSETS NET ASSETS REIMBURSEMENTS) REIMBURSEMENTS) RATE RATE(3)
---------- ---------- ---------------- ----------------- --------- ----------
<S> <C> <C> <C> <C> <C> <C>
VALUE INCOME STOCK FUND
1996 0.95%* 2.62%* 2.70%* 0.88%* 53.65% $0.0564
1995 (1) 0.95%* 2.98%* 5.72%* (1.79%)* 7.17% N/A
MID-CAP EQUITY FUND
1996 1.15%* 0.62%* 3.69%* (1.92%)* 54.10% $0.0546
1995 (1) 1.15%* 2.22%* 6.34%* (2.97%)* 13.29% N/A
CAPITAL GROWTH FUND
1996 1.15%* 1.55%* 3.31%* (0.61%)* 69.43% $0.0540
1995 (1) 1.15%* 1.69%* 6.18%* (3.34%)* 8.05% N/A
INVESTMENT GRADE BOND FUND
1996 0.75%* 5.25% 3.54%* 2.46%* 136.52% N/A
1995 (1) 0.75%* 5.04%* 6.05%* (0.26%)* 108.55% N/A
<FN>
(1) Commenced operations on October 2, 1995.
(2) Unless otherwise specified total returns are not annualized.
(3) Average commision rate paid per share for security purchases
and sales during the period. Presentation of the rate is only
required for fiscal years beginning after September 1, 1995.
* Annualized
(DAGGER) Cumulative since inception.
Amounts designated as "--" are either $0 or have been rounded to $0.
</FN>
</TABLE>
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.
14 & 15
<PAGE>
NOTES TO FINANCIAL STATEMENTS
================================================================================
STI CLASSIC VARIABLE TRUST FUNDS JUNE 30, 1996 (UNAUDITED)
1. Organization:
The STI Classic Variable Trust (the "Trust") was organized as a Massachusetts
business trust under a Declaration of Trust dated April 18, 1995. The Trust is
registered under the Investment Trust Act of 1940, as amended, as an open-end
management investment Trust with four funds: the Value Income Stock Fund, the
Mid-Cap Equity Fund, the Capital Growth Fund (collectively "the Equity Funds")
and the Investment Grade Bond Fund. Each fund's prospectus provides a
description of the fund's investment objectives, policies and strategies. The
assets of each Fund are segregated, and a shareholder's interest is limited to
the Fund in which shares are held. The Fund's prospectus provides a description
of each Fund's investment objective policies and strategies.
2. Significant Accounting Policies:
The following is a summary of significant accounting policies followed by the
Trust. These policies are in conformity with generally accepted accounting
principles.
SECURITY VALUATION -- Investments in equity securities which are traded on
a national securities exchange (or reported on the NASDAQ national market
system) are stated at the last quoted sales price if readily available for
such equity securities on each business day. If there is no such reported
sale, these securities, and unlisted securities for which market quotations
are readily available, are valued at the most recently quoted bid price.
Debt obligations exceeding sixty days to maturity for which market
quotations are readily available are valued at the most recently quoted bid
price. Debt obligations with sixty days or less until maturity may be
valued either at the most recently quoted bid price or at their amortized
cost.
FEDERAL INCOME TAXES -- It is each Fund's intention to qualify as a
regulated investment company by complying with the appropriate provisions
of the Internal Revenue Code of 1986, as amended. Accordingly, no
provisions for Federal income taxes are required.
SECURITY TRANSACTIONS AND INVESTMENT INCOME -- Security transactions are
accounted for on the trade date of the security purchase or sale. Dividend
income is recognized on ex-dividend date, and interest income is recognized
on an accrual basis and includes, where applicable, the pro rata
amortization of premium or accretion of discount. The cost used in
determining net realized capital gains and losses on the sale of securities
are those of the specific securities sold, adjusted for the accretion and
amortization of purchase discounts and premiums during the applicable
holding period. Purchase discounts and premiums on securities held by the
Investment Grade Bond and the Equity Funds are accreted and amortized to
maturity using the scientific interest method, which approximates the
effective interest method.
REPURCHASE AGREEMENTS -- Securities pledged as collateral for repurchase
agreements are held by the custodian bank until the repurchase agreements
mature. Provisions of the repurchase agreements ensure that the market
value of the collateral, including accrued interest thereon, is sufficient
in the event of default of the counterparty. If the counterparty defaults
and the value of the collateral declines or if the counterparty enters an
insolvency proceeding, realization of the collateral by the Funds may be
delayed or limited.
NET ASSET VALUE PER SHARE-- The net asset value per share of each Fund is
calculated on each business day. In general, it is computed by dividing the
assets of each Fund, less its liabilities, by the number of outstanding
shares of the respective class of the Fund. The offering price per share
for the shares of the Investment Grade Bond and Equity Funds is the net
asset value per share.
16
<PAGE>
================================================================================
OTHER -- Distributions from net investment income for the Investment Grade
Bond Fund are declared daily and paid monthly to shareholders.
Distributions from net investment income for the Equity Funds are declared
and paid quarterly to shareholders. Any net realized capital gains are
distributed to shareholders at least annually. Expenses related to a
specific Fund are charged to that Fund. Other operating expenses of the
Trust are pro-rated to the Funds on the basis of relative net assets.
3. Administration and Distribution Agreements
The Trust and SEI Fund Resources (the "Administrator") are parties to an
Administration Agreement (the "Administration Agreement") dated August 18, 1995.
Under the terms of the Administration Agreement the Administrator is entitled to
a fee, subject to a minimum, (expressed as a percentage of the combined average
daily net assets of the Trust and the STI Classic Trust) of: .10% up to $1
billion, .07% on the next $4 billion, .05% on the next $3 billion, .045% on the
next $2 billion, and .04% for over $10 billion.
The Trust and Federated Services Company are parties to a Transfer Agency
servicing agreement dated August 2, 1995 under which Federated Services Company
provides transfer agency services to the Trust.
The Trust and SEI Financial Services Company ("the Distributor") are parties to
a Distribution Agreement dated August 18, 1995. The Distributor receives no fees
for its services under this agreement.
4. Investment Advisory Agreement
Investment advisory services are provided to the Trust by STI Capital
Management, N.A. ("STI Capital"). Under the terms of the investment advisory
agreements, STI Capital is entitled to receive a fee from the Fund, computed
daily and paid monthly, at an annual rate of .74%, 1.15%, .80% and 1.15% of the
average daily net assets of the Investment Grade Bond Fund, Capital Growth Fund,
Value Income Stock Fund and Mid-Cap Equity Fund, respectively.
SunTrust Bank, Atlanta acts as Custodian for all the Funds. Fees of the
Custodian are paid on the basis of net assets. The Custodian plays no role in
determining the investment policies of the Trust or which securities are to be
purchased or sold in the Funds.
5. Organizational Costs and Transactions with Affiliates
Organizational costs have been capitalized by the Trust and are being amortized
on a straight line basis over a maximum of sixty months following commencement
of operations. In the event any of the initial shares of the Trust are redeemed
by any holder thereof during the period that the Trust is amortizing its
organizational costs, the redemption proceeds payable to the holder thereof by
the Trust will be reduced by the unamortized organizational cost in the same
ratio as the number of initial shares being redeemed bears to the number of
initial shares outstanding at the time of redemption.
Certain officers of the Trust are also officers of the Administrator and/or SEI
Financial Services
17
<PAGE>
NOTES TO FINANCIAL STATEMENTS (Concluded)
================================================================================
STI CLASSIC VARIABLE TRUST FUNDS JUNE 30, 1996 (UNAUDITED)
Company (the " Distributor"). Such officers are paid no fees by the Trust for
serving as officers of the Trust.
6. Investment Transactions
The cost of security purchases and the proceeds from security sales, excluding
short-term investments, for the period ended June 30, 1996 were as follows:
U.S. GOVT. U.S. GOVT.
PURCHASES SALES PURCHASE SALES
(000) (000) (000) (000)
-------- ----- --------- ---------
Investment Grade Bond Fund ... $7,175 $5,388 $7,175 $5,388
Capital Growth Fund .......... 9,600 3,629 -- --
Value Income Stock Fund ...... 12,347 3,952 -- --
Mid-Cap Equity Fund .......... 6,139 2,463 -- --
The aggregate gross unrealized appreciation and depreciation for securities held
by the Investment Grade Bond and Equity Funds at June 30, 1996 was as follows:
NET UNREALIZED
APPRECIATED DEPRECIATED APPRECIATION--
SECURITIES SECURITIES (DEPRECIATION)
(000) (000) (000)
----------- ----------- --------------
Investment Grade Bond Fund ..... $ 21 $ 59 $ (38)
Capital Growth Fund ............ 631 133 498
Value Income Stock Fund ........ 584 267 317
Mid-Cap Equity Fund ............ 402 292 110
7. Concentration of Credit Risk:
The Investment Grade Bond Fund invests primarily in investment grade obligations
rated at least BBB or better by S & P or Baa or better by Moody's. Changes by
recognized rating agencies in the ratings of any fixed income security or in the
ability of an issuer to make payments of interest and principal may affect the
value of these investments. The following is a summary of credit quality ratings
for securities held by the Fund at June 30, 1996:
MOODY'S % OF PORTFOLIO VALUE
- -------------------------- --------------------
U.S. Government Securities .......................... 97.6%
Repurchase Agreements ............................... 2.4%
--------
100%
========
S & P % OF PORTFOLIO VALUE
- -------------------------- --------------------
U.S. Government Securities .......................... 97.6%
Repurchase Agreements ............................... 2.4%
--------
100%
========
18
<PAGE>
NOTES
<PAGE>
Investment Advisor:
STI Capital Management, N.A.
STI Classic Variable Trust Funds are not deposits, are not insured or guaranteed
by the FDIC or any other government agency, and are not endorsed by and do not
constitute obligations of SunTrust Banks, Inc. or any other of its affiliates.
Invesment in the Funds involves risk, including the possible loss of principal.
There is no guarantee that any STI Classic Variable Trust Fund will achieve its
investment objective. The STI Classic Variable Trust Funds are advised by an
affiliate of SunTrust Banks, Inc.
Distributor:
SEI Financial Services Company
This information must be preceded or accompanied by a current prospectus for
each Fund described.
