SEMI-ANNUAL
FINANCIAL REPORT
STI Classic Variable Trust
JUNE 30, 2000
[logo omitted]
<PAGE>
Dear STI Classic Variable Trust Shareholders:
The fiscal year 2000 Semi-Annual Financial Report for the STI Classic Variable
Trust Funds is covered in the following section. STI Classic Funds and the
STI Classic Variable Trust Funds have offered investors the opportunity to
invest in a diverse set of investment options since 1992.
The STI Classic Variable Trust Fund menu displayed in the table provides
investors with a variety of investment styles designed to meet the risk
tolerance and growth objectives of most investors. The Funds invest in different
areas of the stock market, recognizing that not all segments move in unison.
<TABLE>
<CAPTION>
STI CLASSIC VARIABLE TRUST (UNAUDITED)
NET OF FEES PERFORMANCE AS OF JUNE 30, 2000
Three Since Inception Inception
Months One Year Two Years (Annualized) Date
---------------------------------------------------------------------------------------------------------------------------
STI Classic Variable Trust
<S> <C> <C> <C> <C> <C> <C>
Capital Appreciation Fund 1.95% 4.32% 11.61% 23.22% 10/2/95
---------------------------------------------------------------------------------------------------------------------------
STI Classic Variable Trust
Growth and Income Fund (0.39%) n/a n/a n/a 12/30/99
---------------------------------------------------------------------------------------------------------------------------
STI Classic Variable Trust
International Equity Fund 5.11% 9.70% 3.95% 11.39% 11/7/96
---------------------------------------------------------------------------------------------------------------------------
STI Classic Variable Trust
Mid-Cap Equity Fund (0.95%) 18.29% 12.12% 15.40% 10/2/95
---------------------------------------------------------------------------------------------------------------------------
STI Classic Variable Trust
Quality Growth Stock Fund (2.43%) n/a n/a n/a 12/30/99
---------------------------------------------------------------------------------------------------------------------------
STI Classic Variable Trust
Small Cap Value Equity Fund 5.19% (7.38%) (8.31%) (6.97%) 10/22/97
---------------------------------------------------------------------------------------------------------------------------
STI Classic Variable Trust
Value Income Stock Fund (2.69%) (19.70%) (3.80%) 10.54% 10/2/95
---------------------------------------------------------------------------------------------------------------------------
STI Classic Variable Trust
Investment Grade Bond Fund (1.76%) 0.57% 1.74% 4.76% 10/2/95
---------------------------------------------------------------------------------------------------------------------------
Returns and principal values will fluctuate and shares at redemption may be
worth more or less than their original cost. Past performance is not a guarantee
of future returns.
The Investment Adviser to the STI Classic Variable Trust is Trusco Capital
Management, Inc., a firm with a long tradition of quality investment services.
Trusco Capital Management is fully committed to reliable long-term investment
performance to enhance the financial goals of our clients.
Thank you for your participation in the STI Classic Variable Trust Funds. We
will do our best to invest wisely in order to achieve your continued confidence.
Sincerely,
/s/signature omitted
Douglas S. Phillips, CFA
President, Chief Investment Officer
Trusco Capital Management
1
</TABLE>
<PAGE>
STATEMENT OF NET ASSETS
--------------------------------------------------------------------------------
STI CLASSIC VARIABLE TRUST JUNE 30, 2000
Capital Appreciation Fund
--------------------------------------------------------------------------------
SHARES VALUE (000)
--------------------------------------------------------------------------------
COMMON STOCKS (93.6%)
BASIC MATERIALS (1.4%)
Air Products & Chemicals 26,900 $ 829
Praxair 22,000 824
--------
1,653
--------
CAPITAL GOODS (13.0%)
Danaher 2,500 124
General Electric 83,800 4,441
Honeywell International 20,000 674
Illinois Tool Works 28,100 1,602
Masco 62,450 1,128
Minnesota Mining & Manufacturing 5,200 429
SPX* 3,200 387
Textron 27,800 1,510
Tyco International Ltd. 86,480 4,097
United Technologies 10,400 612
WW Grainger 3,600 111
--------
15,115
--------
COMMUNICATION SERVICES (6.4%)
ADC Telecommunications* 21,900 1,837
AT&T 24,855 786
Charter Communications, Cl A* 24,400 401
Comverse Technology* 5,400 502
Motorola 23,103 671
Nortel Networks 10,000 682
Sprint (FON Group) 19,000 969
US West 14,100 1,209
Worldcom* 9,968 457
--------
7,514
--------
CONSUMER CYCLICALS (14.9%)
Bed Bath & Beyond* 16,200 587
Brinker International* 29,300 857
Carnival 19,400 378
CVS 58,500 2,340
Eastman Kodak 6,000 357
Ecolab 19,000 742
Federated Department Stores* 2,900 98
Gannett 18,349 1,097
Knight Ridder 5,600 298
Linens 'N Things* 23,700 643
--------------------------------------------------------------------------------
SHARES VALUE (000)
--------------------------------------------------------------------------------
CONSUMER CYCLICALS (CONTINUED)
Lowe's Companies 43,800 $ 1,799
McGraw-Hill Companies 11,900 643
New York Times, Cl A 15,500 612
Office Depot* 3,700 23
RadioShack 50,500 2,392
Royal Caribbean Cruises 24,000 444
Saks* 19,600 206
SFX Entertainment* 14,000 634
Time Warner 10,200 775
United Rentals* 14,000 240
Viacom, Cl B* 23,249 1,585
Walt Disney 15,000 582
--------
17,332
--------
CONSUMER STAPLES (6.0%)
Avon Products 8,300 369
Bestfoods 13,400 928
Flowers Industries 19,600 391
Kroger* 103,200 2,277
Nabisco Group Holdings 39,100 1,014
Nabisco Holdings, Cl A 6,000 315
Pepsico 23,500 1,044
Ralston-Purina Group 33,000 658
--------
6,996
--------
ENERGY (4.7%)
Burlington Resources 18,300 700
Conoco, Cl B 62,300 1,530
Halliburton 10,000 472
Kerr-McGee 18,800 1,108
Texaco 14,900 793
Unocal 26,100 865
--------
5,468
--------
FINANCE (9.0%)
ACE 27,700 776
American International Group 6,253 735
Associates First Capital, Cl A 10,300 230
AXA Financial 8,500 289
Bank of America 20,742 892
Chase Manhattan 21,000 967
Cigna 12,800 1,197
2
<PAGE>
--------------------------------------------------------------------------------
UNAUDITED
--------------------------------------------------------------------------------
SHARES VALUE (000)
--------------------------------------------------------------------------------
FINANCE (CONTINUED)
Comerica 12,300 $ 552
Conseco 18,900 184
Freddie Mac 6,800 275
Golden West Financial 19,000 775
Mellon Financial 31,300 1,140
Metlife* 36,500 769
PNC Financial Services Group 3,900 183
US Bancorp 41,500 799
Washington Mutual 24,068 695
--------
10,458
--------
HEALTH CARE (12.1%)
Baxter International 13,800 970
Bristol-Myers Squibb 24,400 1,421
Cardinal Health 20,134 1,490
Eli Lilly 4,200 419
HCA 2,700 82
Health Management
Associates, Cl A* 40,100 524
Johnson & Johnson 12,200 1,243
Merck 27,700 2,123
Pfizer 44,825 2,152
Pharmacia 18,100 936
Schering-Plough 35,400 1,788
Tenet Healthcare* 34,300 926
--------
14,074
--------
SERVICE INDUSTRIES (3.1%)
Cendant* 102,160 1,430
Interpublic Group 33,600 1,445
Republic Services* 22,700 363
Young & Rubicam 6,300 360
--------
3,598
--------
TECHNOLOGY (22.1%)
Agilent Technologies* 4,920 363
Analog Devices* 12,100 920
BMC Software* 16,500 602
Ceridian* 30,700 739
Cisco Systems* 56,600 3,598
Computer Associates
International 5,500 282
--------------------------------------------------------------------------------
SHARES/FACE
AMOUNT (000) VALUE (000)
--------------------------------------------------------------------------------
TECHNOLOGY (CONTINUED)
Dell Computer* 28,200 $ 1,391
EMC* 18,000 1,385
Hewlett-Packard 12,900 1,611
Intel 21,400 2,861
International Business Machines 29,200 3,199
Microsoft* 54,550 4,364
Novellus Systems* 2,500 141
Sun Microsystems* 28,300 2,574
Teradyne* 3,600 265
Texas Instruments 22,000 1,511
--------
25,806
--------
TRANSPORTATION (0.9%)
Sabre Holdings* 9,429 269
United Parcel Service, Cl B 12,700 749
--------
1,018
--------
Total Common Stocks
(Cost $82,199) 109,032
--------
PREFERRED STOCK (0.4%)
COMMUNICATION SERVICES (0.4%)
Cox Communication - PRIZES,
CV to 0.8621 Shares* 4,500 499
--------
Total Preferred Stock
(Cost $398) 499
--------
CONVERTIBLE BONDS (4.2%)
COMMUNICATION SERVICES (0.5%)
Bell Atlantic Financial Services,
CV to 178.0369 Shares,
Callable 04/01/01 @ 102.3
5.750%, 04/01/03 $400 398
NTL,
CV to 9.2435 Shares (B),
Callable 12/15/02 @ 104.03
5.750%, 12/15/09 250 196
--------
594
--------
CONSUMER CYCLICALS (0.6%)
Clear Channel Communications,
CV to 9.4500 Shares
1.500%, 12/01/02 500 487
3
<PAGE>
STATEMENT OF NET ASSETS
--------------------------------------------------------------------------------
STI CLASSIC VARIABLE TRUST JUNE 30, 2000
CAPITAL APPRECIATION FUND--CONCLUDED
--------------------------------------------------------------------------------
FACE
AMOUNT (000) VALUE (000)
--------------------------------------------------------------------------------
CONSUMER CYCLICALS (CONTINUED)
Tower Automotive,
CV to 38.6399 Shares (B),
Callable 08/07/00 @ 102.86
5.000%, 08/01/04 $ 300 $ 231
--------
718
--------
ENERGY (1.2%)
Diamond Offshore Drilling,
CV to 8.6075 Shares (A) (B),
Callable 06/06/05 @ 59.42
0.000%, 06/06/20 1,000 466
Potomac Electric Power,
CV to 29.5000 Shares,
Callable 08/07/00 @ 95.64
5.000%, 09/01/02 1,000 944
--------
1,410
--------
FINANCE (0.4%)
Elan Finance,
CV to 13.7500 Shares (A),
Callable 12/14/03 @ 61.66
0.000%, 12/14/18 650 471
--------
TECHNOLOGY (1.5%)
America Online,
CV to 5.8338 Shares (A),
Callable 12/06/04 @ 63.98
0.000%, 12/06/19 1,000 499
Solectron,
CV to 14.9440 Shares (A),
Callable 01/27/03 @ 53.06
0.000%, 01/27/19 1,000 674
Solectron,
CV to 12.3309 Shares (A),
Callable 05/08/03 @ 62.86
0.000%, 05/05/20 900 567
--------
1,740
--------
Total Convertible Bonds
(Cost $4,811) 4,933
--------
--------------------------------------------------------------------------------
FACE
AMOUNT (000) VALUE (000)
--------------------------------------------------------------------------------
REPURCHASE AGREEMENT (0.4%)
Morgan Stanley Dean Witter
6.250%, dated 06/30/00,
matures 07/03/00, repurchase
price $430,826 (collateralized
by a U.S. Treasury Note:
market value $440,532) $431 $ 431
--------
Total Repurchase Agreement
(Cost $431) 431
--------
Total Investments (98.6%)
(Cost $87,839) 114,895
--------
OTHER ASSETS AND LIABILITIES,
NET (1.4%) 1,658
--------
NET ASSETS:
Portfolio Shares (unlimited
authorization -- no par value)
based on 5,428,213 outstanding
shares of beneficial interest 82,091
Undistributed net investment income 58
Accumulated net realized gain
on investments 7,348
Net unrealized appreciation
on investments 27,056
--------
Total Net Assets (100.0%) $116,553
========
Net Asset Value, Offering and
Redemption Price Per Share $21.47
========
* NON-INCOME PRODUCING SECURITY
CL -- CLASS
CV -- CONVERTIBLE SECURITY
LTD. -- LIMITED
PRIZES -- PARTICIPATING REDEEMABLE INDEXED ZERO-PREMIUM EXCHANGABLE SECURITIES
(A) ZERO COUPON BOND
(B) PRIVATE PLACEMENT SECURITY
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.
4
<PAGE>
--------------------------------------------------------------------------------
UNAUDITED
GROWTH AND INCOME FUND
--------------------------------------------------------------------------------
SHARES VALUE (000)
--------------------------------------------------------------------------------
COMMON STOCKS (94.2%)
BASIC MATERIALS (3.2%)
International Paper 900 $ 27
Nucor 250 8
--------
35
--------
CAPITAL GOODS (10.5%)
Berkshire Hathaway* 15 26
Boeing 500 21
Deere 400 15
Gannett 225 13
General Electric 400 21
Ingersoll-Rand 500 20
--------
116
--------
COMMUNICATION SERVICES (7.4%)
AT&T 600 19
GTE 250 16
Lucent Technologies 200 12
SBC Communications 250 11
Worldcom* 500 23
--------
81
--------
CONSUMER CYCLICALS (6.4%)
Office Depot* 3,000 19
Sears Roebuck 400 13
Target 400 23
Walt Disney 400 15
--------
70
--------
CONSUMER STAPLES (13.1%)
Albertson's 500 17
Coca-Cola 400 23
Hershey Foods 450 22
Kellogg 500 15
Philip Morris Companies 600 16
Quaker Oats 300 22
Sara Lee 1,500 29
--------
144
--------
------------------------------------------------------------------------
SHARES VALUE (000)
------------------------------------------------------------------------
ENERGY (6.6%)
Exxon Mobil 225 $ 18
Royal Dutch Petroleum,
New York Shares 300 18
Schlumberger Ltd. 200 15
Texaco 400 21
--------
72
--------
FINANCIALS (12.5%)
American International Group 100 12
Bank of America 200 9
Citigroup 250 15
Fannie Mae 475 25
Fleet Boston Financial 500 17
Keycorp 500 9
Morgan Stanley Dean Witter 200 17
Washington Mutual 500 14
Wells Fargo 500 19
--------
137
--------
HEALTH CARE (10.0%)
Amgen* 150 11
HCA 500 15
Johnson & Johnson 250 25
Merck 250 19
Schering-Plough 250 13
Watson Pharmaceutical* 500 27
--------
110
--------
TECHNOLOGY (20.9%)
3com* 400 23
Adaptec* 1,000 23
Agilent Technologies* 37 3
America Online* 300 16
BMC Software* 500 18
Cisco Systems* 200 13
Compaq Computer 1,000 26
Computer Sciences* 250 19
Hewlett-Packard 100 12
5
<PAGE>
STATEMENT OF NET ASSETS
--------------------------------------------------------------------------------
STI CLASSIC VARIABLE TRUST JUNE 30, 2000
GROWTH AND INCOME FUND--CONCLUDED
--------------------------------------------------------------------------------
SHARES/FACE
AMOUNT (000) VALUE (000)
--------------------------------------------------------------------------------
TECHNOLOGY (CONTINUED)
--------------------------------------------------------------------------------
Intel 150 $ 20
International Business Machines 125 14
Microsoft* 400 32
Sun Microsystems* 125 11
--------
230
--------
UTILITIES (3.6%)
Duke Energy 500 28
Southern 500 12
--------
40
--------
Total Common Stocks
(Cost $1,025) 1,035
--------
REPURCHASE AGREEMENT (5.7%)
Morgan Stanley Dean Witter
6.250%, dated 06/30/00,
matures 07/03/00, repurchase
price $63,560 (collateralized
by a U.S. Treasury Note:
market value $64,990) $ 64 63
--------
Total Repurchase Agreement
(Cost $63) 63
--------
Total Investments (99.9%)
(Cost $1,088) 1,098
--------
OTHER ASSETS AND LIABILITIES, NET (0.1%) 1
--------
--------------------------------------------------------------------------------
VALUE (000)
--------------------------------------------------------------------------------
NET ASSETS:
Portfolio Shares (unlimited
authorization -- no par value)
based on 103,208 outstanding
shares of beneficial interest $ 1,089
Net unrealized appreciation
on investments 10
--------
Total Net Assets (100.0%) $ 1,099
========
Net Asset Value, Offering and
Redemption Price Per Share $ 10.64
========
* NON-INCOME PRODUCING SECURITY
LTD. -- LIMITED
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.
6
<PAGE>
--------------------------------------------------------------------------------
UNAUDITED
INTERNATIONAL EQUITY FUND
--------------------------------------------------------------------------------
SHARES VALUE (000)
--------------------------------------------------------------------------------
FOREIGN COMMON STOCKS (98.5%)
AUSTRALIA (1.5%)
National Australia Bank 10,165 $ 169
Pasminco 105,900 56
--------
225
--------
BELGIUM (0.0%)
Dexia VVPR Strips 1,680 --
--------
DENMARK (1.2%)
Danisco 5,100 170
--------
FRANCE (11.7%)
Coflexip Stena Offshore 2,625 317
Compagnie de Saint-Gobain 700 94
ISIS 1,200 85
Lafarge 3,689 286
Suez Lyonnaise Des Eaux 600 105
Technip 2,890 349
Total Fina Elf 2,700 413
Vivendi 900 79
--------
1,728
--------
GERMANY (7.7%)
BASF 3,300 133
Bayer 3,600 140
Buderus 5,600 88
FAG Kugelfischer Georg Schaefer 11,800 88
HypoVereinsbank 2,900 188
Kamps 3,200 102
MG Technologies 17,750 244
Siemens 1,000 150
--------
1,133
--------
--------------------------------------------------------------------------------
SHARES VALUE (000)
--------------------------------------------------------------------------------
HONG KONG (0.7%)
Li & Fung 22,000 $ 110
--------
IRELAND (0.0%)
Bank of Ireland 536 3
--------
ISRAEL (1.2%)
ECI Telecom ADR 4,770 171
--------
ITALY (6.4%)
Banca Intesa 34,950 156
ENI 56,000 323
Parmalat Finanziaria 118,200 166
Saipem 51,000 301
--------
946
--------
JAPAN (31.0%)
Canon 1,700 85
Daiwa House Industry 13,000 95
Daiwa Securities Group 8,000 106
Family Mart 2,600 100
Fuji Heavy Industry 58,400 424
Hirose Electric 900 140
Hitachi 10,000 144
Honda Motor 3,000 102
Japan Tobacco 23 202
KAO 6,300 193
Kirin Brewery 11,200 140
Kyocera 900 153
Matsumotokiuyoshi 500 53
Matsushita Electric Industrial 15,000 389
Minebea 8,000 100
Murata Manufacturing 1,000 144
Nippon Telegraph & Telephone 7 93
7
<PAGE>
STATEMENT OF NET ASSETS
--------------------------------------------------------------------------------
STI CLASSIC VARIABLE TRUST JUNE 30, 2000
INTERNATIONAL EQUITY FUND--CONCLUDED
--------------------------------------------------------------------------------
SHARES VALUE (000)
--------------------------------------------------------------------------------
APAN (CONTINUED)
Olympus Optical 7,000 $ 126
Onward Kashiyama 12,000 163
Promise 1,100 87
Sharp 14,000 248
Sumitomo Heavy Industries 62,000 208
TDK 1,000 144
Tokio Marine & Fire Insurance 14,000 162
Toshiba 21,000 237
Yamada Denki 3,000 269
Yasuda Fire & Marine Insurance 25,000 132
Yokowo 5,000 128
--------
4,567
--------
NETHERLANDS (6.8%)
Akzo Nobel 2,300 97
Fortis 7,900 229
IHC Caland 5,705 277
Randstad Holdings 2,800 103
Unique International 12,345 295
--------
1,001
--------
NEW ZEALAND (1.1%)
Fletcher Challenge Building 151,445 161
--------
NORWAY (3.4%)
Kvaerner 9,000 94
Petroleum Geo-Services ADR* 23,800 406
--------
500
--------
SINGAPORE (0.8%)
Oversea-Chinese Banking 17,000 117
--------
SOUTH KOREA (1.2%)
Hite Brewery 2,900 128
Pohang Iron & Steel ADR 2,000 48
--------
176
--------
--------------------------------------------------------------------------------
SHARES VALUE (000)
--------------------------------------------------------------------------------
SPAIN (3.6%)
Aguas de Barcelona 5,700 $ 76
Altadis 24,700 378
Telefonica 3,600 77
--------
531
--------
SWEDEN (1.8%)
Sandvik 10,400 219
Swedish Match 17,000 53
--------
272
--------
SWITZERLAND (0.5%)
ABB 600 72
--------
UNITED KINGDOM (17.9%)
Allied Zurich 40,050 475
Diageo 49,264 443
Hanson 36,500 259
IMI 9,300 40
Imperial Tobacco Group 41,300 397
Lloyds TSB Group 7,600 72
Prudential 8,000 117
Reckitt Benckiser 32,400 364
Rolls-Royce 72,385 257
Stagecoach Holdings 191,893 212
--------
2,636
--------
Total Foreign Common Stocks
(Cost $13,636) 14,519
--------
FOREIGN RIGHTS (0.0%)
NORWAY (0.0%)
Kvaerner 9,000 5
--------
Total Foreign Rights
(Cost $--) 5
--------
8
<PAGE>
--------------------------------------------------------------------------------
UNAUDITED
--------------------------------------------------------------------------------
SHARES VALUE (000)
--------------------------------------------------------------------------------
FOREIGN WARRANT (0.0%)
FRANCE (0.0%)
Lafarge 686 $ 2
--------
Total Foreign Warrant
(Cost $--) 2
--------
Total Investments (98.5%)
(Cost $13,636) 14,526
--------
OTHER ASSETS AND LIABILITIES, NET (1.5%) 216
--------
NET ASSETS:
Portfolio Shares (unlimited
authorization -- no par value)
based on 1,023,138 outstanding
shares of beneficial interest 11,311
Undistributed net investment income 112
Accumulated net realized gain
on investments 2,430
Net unrealized depreciation on
forward foreign currency contracts,
foreign currency, and translation
of other assets (1)
Net unrealized appreciation
on investments 890
--------
Total Net Assets (100.0%) $ 14,742
========
Net Asset Value, Offering and
Redemption Price Per Share $ 14.41
========
* NON-INCOME PRODUCING SECURITY
ADR -- AMERICAN DEPOSITORY RECEIPT
AMOUNTS DESIGNATED AS "--" ARE EITHER $0 OR HAVE BEEN ROUNDED TO $0.
At June 30, 2000, sector diversification of the Fund was as follows:
% OF VALUE
SECTOR DIVERSIFICATION NET ASSETS (000)
---------------------- ---------- --------
FOREIGN COMMON STOCKS
Food, Beverage and Tobacco 16.1% $ 2,360
Electronics 10.7 1,563
Oil & Gas 9.8 1,439
Construction Materials 8.4 1,242
Insurance 6.0 886
Services 5.1 747
Banking 4.8 706
Manufacturing 4.8 702
Computers 3.7 550
Automotive 3.6 527
Diversified Operations 3.5 513
Machinery 2.9 427
Financial Services 2.9 422
Audio/Video 2.6 389
Chemicals 2.5 371
Telecommunications 2.3 341
Aerospace 1.7 257
Transportation 1.4 212
Consumer Products 1.4 210
Cosmetics & Toiletries 1.3 193
Retail 1.0 153
Distribution 0.7 110
Metals 0.7 104
Real Estate 0.6 95
----- -------
TOTAL FOREIGN
COMMON STOCKS 98.5 14,519
FOREIGN RIGHTS -- 5
FOREIGN WARRANT -- 2
----- -------
TOTAL INVESTMENTS 98.5 14,526
OTHER ASSETS AND
LIABILITIES, NET 1.5 216
------ -------
NET ASSETS 100.0% $14,742
====== =======
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.
9
<PAGE>
STATEMENT OF NET ASSETS
--------------------------------------------------------------------------------
STI CLASSIC VARIABLE TRUST JUNE 30, 2000
MID-CAP EQUITY FUND
--------------------------------------------------------------------------------
SHARES VALUE (000)
--------------------------------------------------------------------------------
COMMON STOCKS (85.9%)
BASIC MATERIALS (4.6%)
Georgia-Pacific Group 5,100 $ 134
Potash of Saskatchewan 9,400 519
Stillwater Mining* 24,800 691
--------
1,344
--------
CAPITAL GOODS (3.2%)
ACT Manufacturing* 11,100 516
SPX* 3,500 423
--------
939
--------
COMMUNICATION SERVICES (8.8%)
Antec* 12,000 499
Commscope* 3,800 156
Harris 9,400 308
Seachange International* 18,100 523
Western Wireless, Cl A* 20,300 1,106
WinStar Communications* 38 1
--------
2,593
--------
CONSUMER CYCLICALS (14.2%)
BJ's Wholesale Club* 9,100 300
Imax* 52,200 1,188
Men's Wearhouse* 60,650 1,353
Nordstrom 14,100 340
Outback Steakhouse* 15,700 459
Polaroid 28,700 518
--------
4,158
--------
CONSUMER STAPLES (3.1%)
Bowater 6,000 265
Suiza Foods* 6,000 293
Universal Foods 18,600 344
--------
902
--------
ENERGY (15.0%)
Apache 9,900 582
Barrett Resources* 16,200 493
BJ Services* 2,300 144
--------------------------------------------------------------------------------
SHARES VALUE (000)
--------------------------------------------------------------------------------
ENERGY (CONTINUED)
Bouygues Offshore ADR 10,100 $ 251
Coflexip Stena Offshore ADR 1,300 79
Cooper Cameron* 2,200 145
Ensco International 4,900 176
Equitable Resources 8,100 391
Global Marine* 5,700 161
Nabors Industries* 3,800 158
Noble Drilling* 2,600 107
Precision Drilling* 26,500 1,024
Smith International* 2,000 146
Stone Energy* 6,200 370
Weatherford International* 3,800 151
--------
4,378
--------
FINANCE (5.7%)
Bank United, Cl A 8,000 282
Colonial Bancgroup 11,900 107
Hibernia 29,700 323
Marshall & Ilsley 6,500 270
North Fork Bancorporation 22,200 336
SouthTrust 15,900 360
--------
1,678
--------
HEALTH CARE (9.8%)
Forest Laboratories, Cl A* 4,000 404
Health Management
Associates, Cl A* 45,200 590
Jones Pharma 25,075 1,001
Mylan Laboratories 17,200 314
Renal Care Group* 23,400 572
--------
2,881
--------
SERVICE INDUSTRIES (0.0%)
Per-Se Technologies* 25 --
--------
TECHNOLOGY (18.8%)
Concurrent Computer* 42,500 558
Cypress Semiconductor* 7,400 313
Integrated Device Technology* 5,600 335
10
<PAGE>
--------------------------------------------------------------------------------
UNAUDITED
--------------------------------------------------------------------------------
SHARES/FACE
AMOUNT (000) VALUE (000)
--------------------------------------------------------------------------------
TECHNOLOGY (CONTINUED)
Jabil Circuit* 9,900 $ 491
NOVA* 19,187 536
Optimal Robotics* 4,150 159
Sawtek* 16,300 938
Symbol Technologies 9,750 527
Vishay Intertechnology 7,100 269
Vitesse Semiconductor* 2,400 177
Zoran* 18,000 1,187
--------
5,490
--------
TRANSPORTATION (2.7%)
CNF Transportation 34,100 776
--------
Total Common Stocks
(Cost $21,653) 25,139
--------
PREFERRED STOCK (0.3%)
WinStar Communications,
CV to 24.2072 Shares (A) 1,000 98
--------
Total Preferred Stock
(Cost $97) 98
--------
WARRANT (0.0%)
Per-Se Technologies* 34 --
--------
Total Warrant
(Cost $0) --
--------
CONVERTIBLE BONDS (8.9%)
COMMUNICATION SERVICES (0.3%)
American Tower,
CV to 19.4175 Shares (A),
Callable 12/15/03 @ 102.50
5.000%, 02/15/10 $100 101
--------
HEALTH CARE (6.0%)
Affymetrix,
CV to 3.1153 Shares (A),
Callable 02/20/03 @ 102.38
4.750%, 02/15/07 210 160
--------------------------------------------------------------------------------
FACE
AMOUNT (000) VALUE (000)
--------------------------------------------------------------------------------
HEALTH CARE (CONTINUED)
Chiron,
CV to 34.5900 Shares,
Callable 08/24/00 @ 97.48
1.900%, 11/17/00 $100 $ 171
Human Genome Sciences,
CV to 8.8888 Shares,
Callable 02/06/03 @ 102.50
5.000%, 02/01/07 185 254
Human Genome Sciences,
CV to 4.5662 (A),
Callable 03/21/03 @ 101.88
3.750%, 03/15/07 280 230
Millennium Pharmaceuticals,
CV to 11.8848 Shares (A),
Callable 01/15/03 @ 103.14
5.500%, 01/15/07 160 230
Sepracor,
CV to 42.2210 Shares,
Callable 02/18/01 @ 103.57
6.250%, 02/15/05 50 255
Sepracor,
CV to 10.8249 Shares (A)
5.000%, 02/15/07 325 468
--------
1,768
--------
TECHNOLOGY (2.6%)
Sanmina,
CV to 22.5561 Shares (A),
Callable 05/06/02 @ 101.70
4.250%, 05/01/04 150 299
Sanmina,
CV to 22.5561 Shares,
Callable 05/06/02 @ 101.70
4.250%, 05/01/04 225 449
--------
748
--------
Total Covertible Bonds
(Cost $1,882) 2,617
--------
11
<PAGE>
STATEMENT OF NET ASSETS
--------------------------------------------------------------------------------
STI CLASSIC VARIABLE TRUST JUNE 30, 2000
MID-CAP EQUITY FUND--CONCLUDED
--------------------------------------------------------------------------------
FACE
AMOUNT (000) VALUE (000)
--------------------------------------------------------------------------------
REPURCHASE AGREEMENT (5.0%)
Morgan Stanley Dean Witter
6.250%, dated 06/30/00,
matures 07/03/00, repurchase
price $1,456,651 (collateralized
by a U.S. Treasury Note:
market value $1,489,467) $1,456 $ 1,456
--------
Total Repurchase Agreement
(Cost $1,456) 1,456
--------
Total Investments (100.1%)
(Cost $25,088) 29,310
--------
OTHER ASSETS AND LIABILITIES, NET (-0.1%) (40)
--------
--------------------------------------------------------------------------------
VALUE (000)
--------------------------------------------------------------------------------
NET ASSETS:
Portfolio Shares (unlimited
authorization -- no par value)
based on 1,747,459 outstanding
shares of beneficial interest $ 19,097
Undistributed net investment income 8
Accumulated net realized gain
on investments 5,943
Net unrealized appreciation
on investments 4,222
--------
Total Net Assets (100.0%) $ 29,270
========
Net Asset Value, Offering and
Redemption Price Per Share $ 16.75
========
* NON-INCOME PRODUCING SECURITY
ADR -- AMERICAN DEPOSITORY RECEIPT
CL -- CLASS
CV -- CONVERTIBLE SECURITY
(A) PRIVATE PLACEMENT SECURITY
AMOUNTS DESIGNATED AS "--" ARE EITHER $0 OR HAVE BEEN ROUNDED TO $0.
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.
12
<PAGE>
--------------------------------------------------------------------------------
UNAUDITED
QUALITY GROWTH STOCK FUND
--------------------------------------------------------------------------------
SHARES VALUE (000)
--------------------------------------------------------------------------------
COMMON STOCKS (95.2%)
BASIC MATERIALS (2.0%)
Alcoa 250 $ 7
E.I. Du Pont de Nemours 136 6
--------
13
--------
CAPITAL GOODS (10.9%)
Agilent Technologies* 31 2
Applied Materials* 79 7
Caterpillar 188 6
General Electric 398 21
Honeywell International 128 4
Linear Technology 199 13
Minnesota Mining & Manufacturing 87 7
Tyco International 82 4
United Technologies 135 8
Visteon* 9 --
--------
72
--------
COMMUNICATION SERVICES (11.1%)
AT&T 220 7
BellSouth 66 3
Brocade Communications System* 22 4
GTE 95 6
JDS Uniphase* 81 10
Lucent Technologies 94 6
Network Appliance* 94 8
Nokia Oyj 11 1
Nortel Networks 174 12
Qualcomm* 71 4
SBC Communications 83 4
Sprint (FON Group) 91 5
Verizon Communications 56 3
--------
73
--------
CONSUMER CYCLICALS (8.8%)
Dollar General 359 7
Ford Motor 77 3
Gap 228 7
--------------------------------------------------------------------------------
SHARES VALUE (000)
--------------------------------------------------------------------------------
CONSUMER CYCLICALS (CONTINUED)
General Motors 49 $ 3
Gillette 106 4
Home Depot 183 9
McDonald's 87 3
Wal-Mart Stores 231 13
Walgreen 202 6
Walt Disney 78 3
--------
58
--------
CONSUMER STAPLES (3.2%)
Coca-Cola 149 9
Pepsico 144 6
Philip Morris 172 5
Procter & Gamble 24 1
--------
21
--------
ENERGY (5.8%)
Chevron 62 5
Exxon Mobil 202 16
Halliburton 145 7
Royal Dutch Petroleum,
New York Shares 73 4
Schlumberger 82 6
--------
38
--------
FINANCE (14.4%)
American Express 233 12
American International Group 111 13
Bank of America 75 3
Charles Schwab 432 15
Chase Manhattan 159 7
Citigroup 179 11
Fannie Mae 160 8
Household International 227 9
JP Morgan 83 9
Wells Fargo 201 8
-------
95
-------
13
<PAGE>
STATEMENT OF NET ASSETS
--------------------------------------------------------------------------------
STI CLASSIC VARIABLE TRUST JUNE 30, 2000
QUALITY GROWTH STOCK FUND--CONCLUDED
--------------------------------------------------------------------------------
SHARES VALUE (000)
--------------------------------------------------------------------------------
HEALTH CARE (11.9%)
Abbott Laboratories 82 $ 4
American Home Products 83 5
Bristol-Myers Squibb 83 5
Eli Lilly 56 6
Johnson & Johnson 82 8
Medtronic 143 7
Merck 177 14
Pfizer 521 25
Schering-Plough 80 4
--------
78
--------
SERVICE INDUSTRIES (2.6%)
Paychex 262 11
Yahoo* 48 6
--------
17
--------
TECHNOLOGY (24.5%)
America Online* 125 7
Cisco Systems* 314 20
Computer Associates International 143 7
Dell Computer* 276 14
EMC* 214 16
Hewlett-Packard 62 8
Intel 190 25
International Business Machines 106 12
Microsoft* 223 18
Oracle* 147 12
Sun Microsystems* 130 12
Texas Instruments 153 10
--------
161
--------
Total Common Stocks
(Cost $616) 626
--------
--------------------------------------------------------------------------------
FACE
AMOUNT (000) VALUE (000)
--------------------------------------------------------------------------------
REPURCHASE AGREEMENT (7.4%)
Morgan Stanley Dean Witter
6.300%, dated 06/30/00,
matures 07/03/00, repurchase
price $48,863 (collateralized
by a U.S. Treasury Note:
market value $49,967) $49 $ 49
--------
Total Repurchase Agreement
(Cost $49) 49
--------
Total Investments (102.6%)
(Cost $665) 675
--------
OTHER ASSETS AND LIABILITIES, NET (-2.6%) (17)
--------
NET ASSETS:
Portfolio Shares (unlimited
authorization -- no par value)
based on 61,549 outstanding
shares of beneficial interest 648
Net unrealized appreciation
on investments 10
--------
Total Net Assets (100.0%) $ 658
========
Net Asset Value, Offering and
Redemption Price Per Share $ 10.69
========
* NON-INCOME PRODUCING SECURITY
AMOUNTS DESIGNATED AS "--" ARE EITHER $0 OR HAVE BEEN ROUNDED TO $0.
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.
14
<PAGE>
--------------------------------------------------------------------------------
UNAUDITED
SMALL CAP VALUE EQUITY FUND
--------------------------------------------------------------------------------
SHARES VALUE (000)
--------------------------------------------------------------------------------
COMMON STOCKS (95.0%)
BASIC MATERIALS (15.6%)
Carpenter Technology 11,400 $ 241
Celanese 3,300 64
Lesco 300 5
Lilly Industries, Cl A 27,300 821
Sociedad Quimica y Minera de
Chile ADR 700 16
Texas Industries 11,500 332
Wausau-Mosinee Paper 7,700 66
--------
1,545
--------
CAPITAL GOODS (21.5%)
ABM Industries 5,300 122
American Woodmark 5,500 113
AO Smith 5,900 123
BHA Group Holdings 6,700 65
Bowne 9,700 98
Briggs & Stratton 1,700 58
Federal Signal 7,500 124
Fedders 2,100 12
Fedders, Cl A 8,000 37
Gerber Scientific 9,600 110
Kaman, Cl A 10,200 109
Lennox International 9,114 121
Lindberg 8,700 62
LSI Industries 8,800 134
Milacron 8,500 123
National Service Industries 200 4
Pittston Brink's Group 30,600 419
Quixote 10,900 163
RPM 4,900 50
Tecumseh Products, Cl A 1,200 46
York Group* 10,500 42
--------
2,135
--------
CONSUMER CYCLICALS (22.9%)
Bassett Furniture 1,700 21
Bush Industries, Cl A 9,900 158
Chemed 3,500 99
--------------------------------------------------------------------------------
SHARES VALUE (000)
--------------------------------------------------------------------------------
CONSUMER CYCLICALS (CONTINUED)
Falcon Products 800 $ 8
Harman International Industries 9,900 604
Interface 83,200 317
Movado Group 700 8
Pep Boys 18,100 109
Phillips-Van Heusen 18,800 179
Polaroid 28,200 509
Standard Register 5,800 83
Stride Rite 6,700 41
Wolverine World Wide 14,400 142
--------
2,278
--------
CONSUMER STAPLES (8.1%)
Great Atlantic & Pacific Tea 2,800 46
Ingles Markets, Cl A 9,800 102
JM Smucker, Cl B 8,200 154
Universal Foods 27,300 505
--------
807
--------
ENERGY (10.5%)
Fletcher Challenge Energy ADR 7,460 235
Midcoast Energy Resources 7,000 110
NUI 5,700 154
Pennzoil-Quaker State 36,600 441
UGI 5,200 107
--------
1,047
--------
FINANCE (8.4%)
Annuity and Life Re 3,600 88
Klamath First Bancorp 7,400 87
PXRE Group 6,900 93
Scottish Annuity & Life Holdings 11,900 100
Seacoast Banking 3,200 86
Student Loan 2,700 113
Washington Federal 5,100 93
West Coast Bancorp 7,760 78
Westerfed Financial 6,500 94
--------
832
--------
15
<PAGE>
STATEMENT OF NET ASSETS
--------------------------------------------------------------------------------
STI CLASSIC VARIABLE TRUST JUNE 30, 2000
SMALL CAP VALUE EQUITY FUND--CONCLUDED
--------------------------------------------------------------------------------
SHARES/FACE
AMOUNT (000) VALUE (000)
--------------------------------------------------------------------------------
HEALTH CARE (2.6%)
Mentor 7,400 $ 201
Vital Signs 3,300 60
--------
261
--------
SERVICE INDUSTRIES (0.5%)
Grey Advertising 100 52
--------
TECHNOLOGY (1.0%)
Pioneer Standard Electronics 2,100 31
Western Resources 4,500 70
--------
101
--------
TRANSPORTATION (3.9%)
Knightsbridge Tankers 3,600 72
Sea Containers, Cl A 14,800 313
--------
385
--------
Total Common Stocks
(Cost $10,771) 9,443
--------
REPURCHASE AGREEMENT (4.4%)
Morgan Stanley Dean Witter
6.250%, dated 06/30/00,
matures 07/03/00, repurchase
price $431,460 (collateralized
by an U.S. Treasury Note:
market value $441,175) $431 431
--------
Total Repurchase Agreement
(Cost $431) 431
--------
Total Investments (99.4%)
(Cost $11,202) 9,874
--------
OTHER ASSETS AND LIABILITIES, NET (0.6%) 64
--------
--------------------------------------------------------------------------------
VALUE (000)
--------------------------------------------------------------------------------
NET ASSETS:
Portfolio Shares (unlimited
authorization -- no par value)
based on 1,249,364 outstanding
shares of beneficial interest $ 13,010
Undistributed net investment income 20
Accumulated net realized loss
on investments (1,764)
Net unrealized depreciation
on investments (1,328)
--------
Total Net Assets (100.0%) $ 9,938
========
Net Asset Value, Offering and
Redemption Price Per Share $ 7.95
========
* NON-INCOME PRODUCING SECURITY
ADR -- AMERICAN DEPOSITORY RECEIPT
CL -- CLASS
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.
16
<PAGE>
--------------------------------------------------------------------------------
UNAUDITED
VALUE INCOME STOCK FUND
--------------------------------------------------------------------------------
SHARES VALUE (000)
--------------------------------------------------------------------------------
COMMON STOCKS (92.6%)
BASIC MATERIALS (3.4%)
Allegheny Technologies 18,900 $ 340
Boise Cascade 29,600 766
Rohm & Haas 37,100 1,280
--------
2,386
--------
CAPITAL GOODS (23.3%)
Cooper Industries 40,800 1,328
Dana 18,700 396
Emerson Electric 50,600 3,055
Fort James 30,300 701
General Dynamics 27,300 1,426
Honeywell International 62,000 2,089
Hubbell 40,700 1,038
Ingersoll-Rand 18,500 745
Masco 84,200 1,521
Minnesota Mining & Manufacturing 21,000 1,732
National Service Industries 33,300 649
Pall 20,100 372
Sonoco Products 44,200 909
WW Grainger 13,800 425
--------
16,386
--------
COMMUNICATION SERVICES (11.2%)
Alltel 13,400 830
AT&T 22,400 708
CenturyTel 16,000 460
GTE 34,500 2,148
Harris 20,800 681
SBC Communications 52,200 2,258
Sprint (FON Group) 15,800 806
--------
7,891
--------
CONSUMER CYCLICALS (8.9%)
Ford Motor 11,825 508
Fortune Brands 38,700 892
--------------------------------------------------------------------------------
SHARES VALUE (000)
--------------------------------------------------------------------------------
CONSUMER CYCLICALS (CONTINUED)
Genuine Parts 23,800 $ 476
International Flavors & Fragrances 31,100 939
JC Penney 19,100 352
Pitney Bowes 20,900 836
Questar 32,100 622
Rockwell International 23,200 731
Ryder System 22,500 426
Stanley Works 20,500 487
--------
6,269
--------
CONSUMER STAPLES (9.8%)
Albertson's 47,700 1,586
Bestfoods 20,400 1,413
Conagra 45,700 871
Flowers Industries 22,200 443
HJ Heinz 14,100 617
Kimberly-Clark 33,600 1,928
--------
6,858
--------
ENERGY (10.8%)
Coastal 20,400 1,242
Conoco, Cl B 105,672 2,596
Exxon Mobil 19,600 1,539
Texaco 28,400 1,512
Unocal 21,100 699
--------
7,588
--------
FINANCE (16.1%)
Allstate 56,700 1,262
American Financial Group 7,800 193
American General 16,300 994
Amsouth Bancorporation 64,704 1,019
Bank of America 15,400 662
Chase Manhattan 12,825 591
Chubb 14,700 904
Fleet Boston Financial 40,929 1,392
Keycorp 25,200 444
17
<PAGE>
STATEMENT OF NET ASSETS
--------------------------------------------------------------------------------
STI CLASSIC VARIABLE TRUST JUNE 30, 2000
VALUE INCOME STOCK FUND--CONCLUDED
--------------------------------------------------------------------------------
SHARES/FACE
AMOUNT (000) VALUE (000)
--------------------------------------------------------------------------------
FINANCE (CONTINUED)
Paine Webber Group 7,200 $ 328
PNC Financial Services Group 30,600 1,434
Reliastar Financial 9,500 498
Summit Bancorp 40,600 1,000
Torchmark 23,300 575
--------
11,296
--------
HEALTH CARE (5.1%)
Baxter International 39,400 2,770
Pharmacia 16,337 844
--------
3,614
--------
SERVICE INDUSTRIES (0.9%)
H & R Block 19,600 635
--------
TECHNOLOGY (3.1%)
Duke Energy 12,500 705
International Business Machines 8,000 876
Scana 23,790 574
--------
2,155
--------
Total Common Stocks
(Cost $70,330) 65,078
--------
REPURCHASE AGREEMENT (6.8%)
Morgan Stanley Dean Witter
6.700%, dated 06/30/00,
matures 07/03/00, repurchase
price $4,828,666 (collateralized
by an FHLMC: market value
$4,937,715) $4,826 4,826
--------
Total Repurchase Agreement
(Cost $4,826) 4,826
--------
Total Investments (99.4%)
(Cost $75,156) 69,904
--------
OTHER ASSETS AND LIABILITIES, NET (0.6%) 390
--------
--------------------------------------------------------------------------------
VALUE (000)
--------------------------------------------------------------------------------
NET ASSETS:
Portfolio Shares (unlimited
authorization -- no par value)
based on 5,742,191 outstanding
shares of beneficial interest $80,497
Undistributed net investment income 248
Accumulated net realized loss
on investments (5,199)
Net unrealized depreciation
on investments (5,252)
--------
Total Net Assets (100.0%) $70,294
========
Net Asset Value, Offering and
Redemption Price Per Share $ 12.24
========
CL -- CLASS
FHLMC -- FEDERAL HOME LOAN MORTGAGE CORPORATION
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.
18
<PAGE>
--------------------------------------------------------------------------------
UNAUDITED
Investment Grade Bond Fund
--------------------------------------------------------------------------------
FACE
AMOUNT (000) VALUE (000)
--------------------------------------------------------------------------------
U.S. TREASURY OBLIGATIONS (22.7%)
U.S. Treasury Notes
6.500%, 08/31/01 $1,300 $ 1,300
6.500%, 08/15/05 350 354
6.500%, 02/15/10 400 413
U.S. Treasury Bonds
7.500%, 11/15/16 1,200 1,351
8.750%, 08/15/20 550 706
--------
Total U.S. Treasury Obligations
(Cost $4,057) 4,124
--------
CORPORATE OBLIGATIONS (52.8%)
FINANCE (23.0%)
Aristar
7.250%, 06/15/06 500 478
Associates
6.250%, 11/01/08 450 403
Countrywide Home Loan
6.850%, 06/15/04 300 292
Countrywide Home Loan, MTN
6.510%, 02/11/05 300 283
Deutsche Telekom
8.250%, 06/15/30 350 355
Finova Capital
7.250%, 11/08/04 250 220
7.250%, 07/12/06 500 413
Finova Capital, MTN
7.300%, 09/22/03 550 483
Great Western
8.600%, 02/01/02 340 344
Household Finance
7.200%, 07/15/06 450 434
Wachovia
5.625%, 12/15/08 250 216
Washington Mutual
7.500%, 08/15/06 250 243
--------
4,164
--------
--------------------------------------------------------------------------------
FACE
AMOUNT (000) VALUE (000)
--------------------------------------------------------------------------------
INVESTMENT BANKER/BROKER DEALER (5.9%)
Donaldson, Lufkin & Jenrette, MTN
6.150%, 05/04/04 $200 $ 190
Morgan Stanley Dean Witter, MTN
7.375%, 04/15/03 400 400
Paine Webber Group, MTN
6.020%, 04/22/02 500 486
--------
1,076
--------
INDUSTRIAL (6.3%)
Avon Products
7.150%, 11/15/09 200 191
Cooper Tire & Rubber
7.750%, 12/15/09 400 389
Marriot International, Ser C
7.875%, 09/15/09 350 344
Philip Morris
7.500%, 04/01/04 50 49
Tribune
7.450%, 10/15/09 175 173
--------
1,146
--------
INSURANCE (14.9%)
Aon
6.900%, 07/01/04 650 628
Conseco
8.750%, 02/09/04 800 556
6.800%, 06/15/05 465 307
Conseco (A)
6.400%, 12/15/00 200 158
Provident
7.000%, 07/15/18 550 438
Reliastar Financial
8.000%, 10/30/06 280 282
6.500%, 11/15/08 350 321
--------
2,690
--------
19
<PAGE>
STATEMENT OF NET ASSETS
--------------------------------------------------------------------------------
STI CLASSIC VARIABLE TRUST JUNE 30, 2000 UNAUDITED
INVESTMENT GRADE BOND FUND--CONCLUDED
--------------------------------------------------------------------------------
FACE
AMOUNT (000) VALUE (000)
--------------------------------------------------------------------------------
UTILITIES (2.7%)
Florida Power & Light
5.875%, 04/01/09 $ 550 $ 490
--------
Total Corporate Obligations
(Cost $10,486) 9,566
--------
U.S. AGENCY MORTGAGE-BACKED OBLIGATIONS (14.9%)
FHLMC
7.375%, 05/15/03 1,000 1,010
5.750%, 03/15/09 750 681
FNMA
7.125%, 01/15/30 1,000 1,002
--------
Total U.S. Agency Mortgage-Backed
Obligations (Cost $2,670) 2,693
--------
MORTGAGE-BACKED OBLIGATION (4.1%)
Commercial, Ser 1999-1, Cl A2
6.455%, 06/15/08 800 750
--------
Mortgage-Backed Obligation
(Cost $741) 750
--------
REPURCHASE AGREEMENT (5.7%)
Morgan Stanley Dean Witter
6.25%, dated 06/30/00,
matures 07/03/00, repurchase
price $1,029,592 (collateralized
by an U.S. Treasury Note:
market value $1,052,787) 1,029 1,029
--------
Total Repurchase Agreement
(Cost $1,029) 1,029
--------
Total Investments (100.2%)
(Cost $18,983) 18,162
--------
OTHER ASSETS AND LIABILITIES, NET (-0.2%) (30)
--------
--------------------------------------------------------------------------------
VALUE (000)
--------------------------------------------------------------------------------
NET ASSETS:
Portfolio Shares (unlimited
authorization -- no par value)
based on 1,916,639 outstanding
shares of beneficial interest $ 19,754
Accumulated net realized loss
on investments (801)
Net unrealized depreciation
on investments (821)
--------
Total Net Assets (100.0%) $ 18,132
========
Net Asset Value, Offering and
Redemption Price Per Share $ 9.46
========
CL -- CLASS
FHLMC -- FEDERAL HOME LOAN MORTGAGE CORPORATION
FNMA -- FEDERAL NATIONAL MORTGAGE ASSOCIATION
MTN -- MEDIUM TERM NOTE
SER -- SERIES
(A) ADJUSTABLE RATE SECURITY. THE RATE REPORTED IS THE RATE IN EFFECT ON
JUNE 30, 2000.
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.
20
<PAGE>
<TABLE>
<CAPTION>
STATEMENTS OF OPERATIONS (000)
------------------------------------------------------------------------------------------------------------------------------------
STI CLASSIC VARIABLE TRUST FOR THE SIX MONTH PERIOD ENDED JUNE 30, 2000 UNAUDITED
CAPITAL GROWTH INTERNATIONAL MID-CAP
APPRECIATION AND INCOME EQUITY EQUITY
FUND FUND FUND FUND
------------ ---------- ------------- --------
Investment Income:
<S> <C> <C> <C> <C>
Interest Income ......................... $ 272 $ 1 $ 20 $ 51
Dividend Income ......................... 591 3 235 126
Less: Foreign Taxes Withheld ............ -- -- (17) --
------- ----- ------ ------
Total Investment Income ............. 863 4 238 177
------- ----- ------ ------
Expenses:
Investment Advisory Fees ................ 704 1 98 173
Less: Investment Advisory
Fees Waived ........................... (123) (1) (43) (51)
Administrator Fees ...................... 32 31 37 31
Custody Fees ............................ 24 -- 16 6
Transfer Agent Fees ..................... 17 -- 3 4
Professional Fees ....................... 30 -- 4 6
Trustee Fees ............................ 3 -- -- 1
Registration Fees ....................... -- -- -- --
Printing Expenses ....................... 15 -- 2 4
Pricing Fees ............................ 1 -- 6 --
Insurance and Other Fees ................ 1 1 -- --
Amortization of Deferred
Organization Costs ..................... -- -- 2 --
------- ----- ------ ------
Total Expenses 704 32 125 174
Less: Reimbursements from Adviser ....... -- (30) -- --
------- ----- ------ ------
Net Expenses ........................ 704 2 125 174
------- ----- ------ ------
Net Investment Income ............. 159 2 113 3
------- ----- ------ ------
Net Realized Gain (Loss) on
Securities Sold ....................... 4,209 -- (417) 3,068
Net Realized Loss on Foreign
Currency Transactions ................. -- -- (2) --
Net Change in Unrealized Appreciation
(Depreciation) on Investments ......... 2,271 10 644 (173)
Net Change in Unrealized Appreciation
on Forward Currency Contracts,
Foreign Currency, and Translation
of Other Assets and Liabilities
in Foreign Currency ................... -- -- 8 --
------- ----- ------ ------
Net Realized and Unrealized
Gain (Loss) on Investments
and Foreign Currency ............ 6,480 10 233 2,895
------- ----- ------ ------
Increase (Decrease) in Net Assets
from Operations ......................... $ 6,639 $ 12 $ 346 $2,898
======= ===== ====== ======
</TABLE>
<TABLE>
<CAPTION>
QUALITY SMALL CAP VALUE
GROWTH VALUE INCOME INVESTMENT
STOCK EQUITY STOCK GRADE
FUND FUND FUND BOND FUND
-------- -------- -------- ----------
Investment Income:
<S> <C> <C> <C> <C>
Interest Income ......................... $ 1 $ 12 $ 210 $ 709
Dividend Income ......................... 1 127 1,073 --
Less: Foreign Taxes Withheld ............ -- -- -- --
------- ----- ------- ------
Total Investment Income ............. 2 139 1,283 709
------- ----- ------- ------
Expenses:
Investment Advisory Fees ................ 1 57 334 73
Less: Investment Advisory
Fees Waived ........................... (1) (35) (39) (44)
Administrator Fees ...................... 31 31 31 31
Custody Fees ............................ -- 2 20 4
Transfer Agent Fees ..................... -- 2 14 3
Professional Fees ....................... -- 3 21 3
Trustee Fees ............................ -- -- 2 1
Registration Fees ....................... -- -- -- --
Printing Expenses ....................... -- 1 11 3
Pricing Fees ............................ -- -- 1 --
Insurance and Other Fees ................ -- -- 1 --
Amortization of Deferred
Organization Costs ..................... -- -- -- --
------- ----- ------- ------
Total Expenses ...................... 31 61 396 74
Less: Reimbursements from Adviser .......... (30) -- -- --
------- ----- ------- ------
Net Expenses ........................ 1 61 396 74
------- ----- ------- ------
Net Investment Income ............. 1 78 887 635
------- ----- ------- ------
Net Realized Gain (Loss) on
Securities Sold ....................... -- (38) (9,363) (388)
Net Realized Loss on Foreign
Currency Transactions ................. -- -- -- --
Net Change in Unrealized Appreciation
(Depreciation) on Investments ......... 10 (13) 2,058 (200)
Net Change in Unrealized Appreciation
on Forward Currency Contracts,
Foreign Currency, and Translation
of Other Assets and Liabilities
in Foreign Currency ................... -- -- -- --
------- ----- ------- ------
Net Realized and Unrealized
Gain (Loss) on Investments
and Foreign Currency ............ 10 (51) (7,305) (588)
------- ----- ------- ------
Increase (Decrease) in Net Assets
from Operations ......................... $ 11 $ 27 $(6,418) $ 47
======= ===== ======= =====
</TABLE>
Amounts designated as "--" are either $0 or have been rounded to $0.
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.
21
<PAGE>
<TABLE>
<CAPTION>
STATEMENTS OF CHANGES IN NET ASSETS (000)
---------------------------------------------------------------------------------------------------------------------------
STI CLASSIC VARIABLE TRUST FOR THE PERIOD ENDED JUNE 30 (UNAUDITED) AND THE YEAR ENDED DECEMBER 31,
CAPITAL APPRECIATION GROWTH AND
FUND INCOME FUND
----------------------------- ----------------------------
01/01/00- 01/01/99- 01/01/00- 12/30/99(1)-
06/30/00 12/31/99 06/30/00 12/31/99
--------- -------- --------- -----------
Investment Activities:
<S> <C> <C> <C> <C>
Net Investment Income ................... $ 159 $ 245 $ 2 $ --
Net Realized Gain (Loss) on Investments
and Foreign Currency Transactions ..... 4,209 4,287 -- --
Net Change in Unrealized Appreciation
(Depreciation) on Investments ......... 2,271 5,562 10 --
Net Change in Unrealized Appreciation
(Depreciation) on Forward Foreign
Currency Contracts, Foreign Currency,
and Translation of Other Assets and
Liabilities in Foreign Currency ....... -- -- -- --
-------- -------- ------- -----
Increase (Decrease) in Net Assets Resulting
from Operations ....................... 6,639 10,094 12 --
-------- -------- ------- -----
Distributions to Shareholders:
Net Investment Income ................... (131) (275) (2) --
Capital Gains ........................... -- (8,721) -- --
-------- -------- ------- -----
Total Distributions ..................... (131) (8,996) (2) --
-------- -------- ------- -----
Capital Transactions:
Proceeds from Shares Issued ............. 575 24,657 1,098 10
Reinvestment of Cash Distributions ...... 131 8,996 2 --
Cost of Shares Repurchased .............. (24,733) (6,239) (21) --
-------- -------- ------- -----
Increase (Decrease) in Net Assets from
Capital Transactions .................. (24,027) 27,414 1,079 10
-------- -------- ------- -----
Total Increase (Decrease) in Net Assets . (17,519) 28,512 1,089 10
-------- -------- ------- -----
Net Assets:
Beginning of Period ..................... 134,072 105,560 10 --
-------- -------- ------- -----
End of Period ........................... $116,553 $134,072 $ 1,099 $ 10
======== ======== ======= =====
Shares Issued and Redeemed:
Shares Issued ........................... 28 1,202 104 1
Shares Issued in Lieu of Cash Distributions 6 460 -- --
Shares Redeemed ......................... (1,220) (314) (2) --
-------- -------- ------- -----
Net Share Transactions .................. (1,186) 1,348 102 1
======== ======== ======= =====
</TABLE>
<TABLE>
<CAPTION>
INTERNATIONAL
EQUITY FUND
-------------------------------
01/01/00- 01/01/99-
06/30/00 12/31/99
----------- ---------
Investment Activities:
<S> <C> <C>
Net Investment Income ..................... $ 113 $ 79
Net Realized Gain (Loss) on Investments
and Foreign Currency Transactions ....... (419) 2,770
Net Change in Unrealized Appreciation
(Depreciation) on Investments ........... 644 (1,281)
Net Change in Unrealized Appreciation
(Depreciation) on Forward Foreign
Currency Contracts, Foreign Currency,
and Translation of Other Assets and
Liabilities in Foreign Currency ......... 8 (11)
-------- -------
Increase (Decrease) in Net Assets Resulting
from Operations ......................... 346 1,557
-------- -------
Distributions to Shareholders:
Net Investment Income ..................... -- (93)
Capital Gains ............................. -- (271)
-------- -------
Total Distributions ....................... -- (364)
-------- -------
Capital Transactions:
Proceeds from Shares Issued ............... 386 2,079
Reinvestment of Cash Distributions ........ -- 364
Cost of Shares Repurchased ................ (4,258) (4,294)
-------- -------
Increase (Decrease) in Net Assets from
Capital Transactions .................... (3,872) (1,851)
-------- -------
Total Increase (Decrease) in Net Assets ... (3,526) (658)
-------- -------
Net Assets:
Beginning of Period ....................... 18,268 18,926
-------- -------
End of Period ............................. $ 14,742 $18,268
======== =======
Shares Issued and Redeemed:
Shares Issued ............................. 29 156
Shares Issued in Lieu of Cash Distributions -- 27
Shares Redeemed ........................... (317) (322)
-------- -------
Net Share Transactions .................... (288) (139)
======== =======
</TABLE>
Amounts designated as "--" are either $0 or have been rounded to $0.
(1) Commenced operations on December 30, 1999.
22
<PAGE>
<TABLE>
<CAPTION>
=====================================================================================================
MID-CAP QUALITY GROWTH SMALL CAP VALUE
EQUITY FUND STOCK FUND EQUITY FUND
------------------------ ---------------------------- --------------------------
01/01/00- 01/01/99- 01/01/00- 12/30/99 (1)- 01/01/00- 01/01/99-
06/30/00 12/31/99 06/30/00 12/31/99 06/30/00 12/31/99
---------- ---------- ---------- ---------- ---------- ----------
<S> <C> <C> <C> <C> <C>
$ 3 $ (57) $ 1 $ -- $ 78 $ 143
3,068 2,943 -- -- (38) (1,194)
(173) 789 10 -- (13) 349
-- -- -- -- -- --
-------- ------ ------ ----- ------- -------
2,898 3,675 11 -- 27 (702)
-------- ------ ------ ----- ------- -------
-- -- (1) -- (75) (146)
-- (475) -- -- -- --
-------- ------ ------ ----- ------- -------
-- (475) (1) -- (75) (146)
-------- ------ ------ ----- ------- -------
380 1,583 651 10 778 1,442
-- 475 1 -- 75 146
(4,752) (5,589) (14) -- (1,914) (2,838)
-------- ------ ------ ----- ------- -------
(4,372) (3,531) 638 10 (1,061) (1,250)
-------- ------ ------ ----- ------- -------
(1,474) 331) 648 10 (1,109) (2,098)
-------- ------ ------ ----- ------- -------
30,744 31,075 10 -- 11,047 13,145
-------- ------- ------ ----- ------- -------
$29,270 $30,744 $ 658 $ 10 $ 9,938 $11,047
======== ======= ====== ===== ======= =======
24 117 62 1 104 180
-- 35 -- -- 10 19
(299) (420) (1) -- (251) (363)
-------- ------- ------ ----- ------- -------
(275) (268) 61 1 (137) (164)
======== ======= ====== ===== ======= ======
</TABLE>
VALUE INCOME INVESTMENT GRADE
STOCK FUND BOND FUND
---------------------------- --------------------------
01/01/00- 01/01/99- 01/01/00- 01/01/99-
06/30/00 12/31/99 06/30/00 12/31/99
---------- ---------- ---------- ---------
$ 887 $ 2,082 $ 635 $ 1,198
(9,363) 4,217 (388) (403)
2,058 (9,964) (200) (1,128)
-- -- -- --
-------- -------- ------- -------
(6,418) (3,665) 47 (333)
-------- -------- ------- -------
(841) (2,105) (635) (1,196)
-- (8,555) -- (262)
-------- -------- ------- -------
(841) (10,660) (635) (1,458)
-------- -------- ------- -------
2,046 12,332 759 7,882
841 10,660 634 1,458
(27,075) (5,685) (4,406) (5,052)
-------- -------- ------- -------
(24,188) 17,307 (3,013) 4,288
-------- -------- ------- -------
(31,447) 2,982 (3,601) 2,497
-------- -------- ------- -------
101,741 98,759 21,733 19,236
-------- -------- ------- -------
$ 70,294 $101,741 $18,132 $21,733
======== ======== ======= =======
160 800 80 772
68 734 66 146
(2,176) (392) (462) (504)
(1,948) 1,142 (316) 414
======== ======== ======= =======
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.
23
<PAGE>
<TABLE>
<CAPTION>
FINANCIAL HIGHLIGHTS
---------------------------------------------------------------------------------------------------------------------------
STI CLASSIC VARIABLE TRUST FOR THE PERIOD ENDED JUNE 30, 2000 (UNAUDITED) AND
THE YEARS ENDED DECEMBER 31,
FOR A SHARE OUTSTANDING THROUGHOUT THE PERIOD
NET NET REALIZED AND DISTRIBUTIONS
NET ASSET VALUE INVESTMENT UNREALIZED GAINS (LOSSES) DISTRIBUTIONS FROM FROM REALIZED
BEGINNING OF PERIOD INCOME (LOSS) ON INVESTMENTS NET INVESTMENT INCOME CAPITAL GAINS
------------------- -------------- ---------------------- -------------------- -----------------
CAPITAL APPRECIATION FUND (A)
<S> <C> <C> <C> <C> <C> <C>
2000 $20.27 $ 0.03 $1.19 $(0.02) $ --
1999 20.04 0.04 1.65 (0.04) (1.42)
1998 17.27 0.07 4.54 (0.08) (1.76)
1997 13.06 0.10 4.63 (0.10) (0.42)
1996 10.66 0.12 2.40 (0.12) --
1995 (1) 10.00 0.04 0.66 (0.04) --
GROWTH AND INCOME FUND
2000 $10.00 $ 0.04 $ 0.64 $(0.04) $ --
1999 (2) 10.00 -- -- -- --
INTERNATIONAL EQUITY FUND
2000 $13.93 $ 0.10 $ 0.38 $ -- $ --
1999 13.05 0.03 1.11 (0.07) (0.19)
1998 11.87 0.10 1.17 (0.01) (0.08)
1997 10.16 0.03 1.68 -- --
1996 (3) 10.00 0.01 0.16 (0.01) --
MID-CAP EQUITY FUND (B)
2000 $15.20 $(0.01) $ 1.56 $ -- $ --
1999 13.56 (0.03) 1.90 -- (0.23)
1998 13.97 -- 0.70 -- (1.11)
1997 11.86 (0.01) 2.64 (0.01) (0.51)
1996 10.27 0.06 1.59 (0.06) --
1995 (1) 10.00 0.05 0.27 (0.05) --
QUALITY GROWTH STOCK FUND
2000 $10.00 $ 0.02 $ 0.69 $(0.02) $ --
1999 (2) 10.00 -- -- -- --
SMALL CAP VALUE EQUITY FUND (C)
2000 $ 7.97 $ 0.06 $(0.02) $(0.06) $ --
1999 8.48 0.10 (0.51) (0.10) --
1998 9.77 0.12 (1.30) (0.11) --
1997 (4) 10.00 0.03 (0.23) (0.03) --
VALUE INCOME STOCK FUND
2000 $13.23 $ 0.14 $(0.99) $(0.14) $ --
1999 15.08 0.29 (0.63) (0.29) (1.22)
1998 15.21 0.27 1.02 (0.28) (1.14)
1997 12.41 0.28 3.02 (0.28) (0.22)
1996 10.67 0.23 1.74 (0.23) --
1995 (1) 10.00 0.06 0.67 (0.06) --
INVESTMENT GRADE BOND FUND
2000 $ 9.73 $ 0.31 $(0.27) $(0.31) $ --
1999 10.58 0.56 (0.73) (0.56) (0.12)
1998 10.19 0.54 0.39 (0.54) --
1997 9.92 0.58 0.27 (0.58) --
1996 10.25 0.54 (0.33) (0.54) --
1995 (1) 10.00 0.13 0.25 (0.13) --
<FN>
(A) During the fiscal year ended December 31, 1999, the Capital Growth Fund
changed its name to the Capital Appreciation Fund.
(B) During the fiscal year ended December 31, 1996, the Aggressive Growth Fund
changed its name to the Mid-Cap Equity Fund.
(C) During the period ended June 30, 2000,
the Small Cap Equity Fund changed its name to the Small Cap Value Equity Fund.
(1) Commenced operations on October 2, 1995. All ratios for the period have been annualized.
(2) Commenced operations on December 30, 1999. All ratios for the period have
been annualized.
(3) Commenced operations on November 7, 1996. All ratios for the period have been annualized.
(4) Commenced operations on October 22, 1997. All ratios for the period have been annualized.
+ Returns are for the period indicated and have not been annualized.
Amounts designated as "--" are either $0 or have been rounded to $0.
</FN>
</TABLE>
<TABLE>
<CAPTION>
RATIO OF
NET ASSET NET ASSETS RATIO OF NET INVESTMENT
VALUE END TOTAL END OF EXPENSES TO INCOME (LOSS) TO
OF PERIOD RETURN+ PERIOD (000) AVERAGE NET ASSETS AVERAGE NET ASSETS
---------- -------- ---------- ------------------ ------------------
CAPITAL APPRECIATION FUND (A)
<S> <C> <C> <C> <C> <C> <C>
2000 $21.47 6.04% $116,553 1.15% 0.26%
1999 20.27 8.73 134,072 1.15 0.20
1998 20.04 28.97 105,560 1.15 0.43
1997 17.27 36.54 61,877 1.15 0.70
1996 13.06 23.75 25,189 1.15 1.15
1995 (1) 10.66 6.96 3,778 1.15 1.69
GROWTH AND INCOME FUND
2000 $10.64 6.82% $ 1,099 1.20% 1.27%
1999 (2) 10.00 -- 10 1.20 --
INTERNATIONAL EQUITY FUND
2000 $14.41 3.45% $ 14,742 1.59% 1.44%
1999 13.93 8.81 18,268 1.60 0.42
1998 13.05 10.80 18,926 1.60 0.63
1997 11.87 16.84 13,847 1.60 0.41
1996 (3) 10.16 1.70 995 1.60 1.83
MID-CAP EQUITY FUND (B)
2000 $16.75 10.02% $ 29,270 1.15% 0.03%
1999 15.20 14.00 30,744 1.15 (0.20)
1998 13.56 7.16 31,075 1.15 (0.29)
1997 13.97 22.23 23,913 1.15 (0.07)
1996 11.86 16.05 14,294 1.15 0.58
1995 (1) 10.27 3.19 3,409 1.15 2.22
QUALITY GROWTH STOCK FUND
2000 $10.69 7.07% $ 658 1.30% 0.42%
1999 (2) 10.00 -- 10 1.30 --
SMALL CAP VALUE EQUITY FUND (C)
2000 $ 7.95 0.50% $ 9,938 1.20% 1.56%
1999 7.97 (4.78) 11,047 1.20 1.23
1998 8.48 (12.18) 13,145 1.20 1.23
1997 (4) 9.77 (2.05) 7,563 1.20 1.62
VALUE INCOME STOCK FUND
2000 $12.24 (6.46)% $ 70,294 0.95% 2.12%
1999 13.23 (3.00) 101,741 0.95 1.95
1998 15.08 9.69 98,759 0.95 1.90
1997 15.21 26.82 72,747 0.95 2.09
1996 12.41 18.64 31,216 0.95 2.45
1995 (1) 10.67 7.31 4,015 0.95 2.98
INVESTMENT GRADE BOND FUND
2000 $ 9.46 0.39% $ 18,132 0.75% 6.41%
1999 9.73 (1.67) 21,733 0.75 5.56
1998 10.58 9.38 19,236 0.75 5.19
1997 10.19 8.84 9,902 0.75 5.81
1996 9.92 2.29 8,039 0.75 5.54
1995 (1) 10.25 3.68 3,115 0.75 5.04
</TABLE>
<TABLE>
<CAPTION>
RATIO OF RATIO OF
EXPENSES TO NET INVESTMENT
AVERAGE NET ASSETS AVERAGE NET ASSETS PORTFOLIO
(EXCLUDING WAIVERS (EXCLUDING WAIVERS TURNOVER
AND REIMBURSEMENTS) AND REIMBURSEMENTS) RATE
------------------ ------------------ ---------
CAPITAL APPRECIATION FUND (A)
<S> <C> <C> <C> <C>
2000 1.35% 0.06% 68%
1999 1.36 (0.01) 168
1998 1.41 0.17 219
1997 1.60 0.25 196
1996 2.43 (0.13) 148
1995 (1) 6.18 (3.34) 8
GROWTH AND INCOME FUND
2000 19.41% (16.94)% 6%
1999 (2) 1.20 -- --
INTERNATIONAL EQUITY FUND
2000 2.13% 0.90% 95%
1999 1.99 0.03 207
1998 2.07 0.16 129
1997 2.93 (0.92) 99
1996 (3) 31.39 (27.96) --
MID-CAP EQUITY FUND (B)
2000 1.49% (0.31)% 62%
1999 1.50 (0.55) 122
1998 1.53 (0.67) 92
1997 1.77 (0.69) 139
1996 2.79 (1.06) 140
1995 (1) 6.34 (2.97) 13
QUALITY GROWTH STOCK FUND
2000 28.30% (26.58)% 2%
1999 (2) 1.30 -- --
SMALL CAP VALUE EQUITY FUND (C)
2000 1.89% 0.87% 17%
1999 1.83 0.60 63
1998 1.89 0.54 49
1997 (4) 2.66 0.16 4
VALUE INCOME STOCK FUND
2000 1.04% 2.03% 30%
1999 0.96 1.94 80
1998 1.11 1.74 76
1997 1.23 1.81 105
1996 1.95 1.45 80
1995 (1) 5.72 (1.79) 7
INVESTMENT GRADE BOND FUND
2000 1.19% 5.97% 82%
1999 1.19 5.12 243
1998 1.34 4.60 183
1997 1.58 4.98 219
1996 2.78 3.51 303
1995 (1) 6.05 (0.26) 109
</TABLE>
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.
25
<PAGE>
NOTES TO FINANCIAL STATEMENTS
--------------------------------------------------------------------------------
STI CLASSIC VARIABLE TRUST JUNE 30, 2000
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 Company Act of 1940, as amended, as an open-end
management investment company with eight funds: the Capital Appreciation Fund,
the Growth and Income Fund, the International Equity Fund, the Mid-Cap Equity
Fund, the Quality Growth Stock Fund, the Small Cap Value Equity Fund (formerly
Small Cap Equity Fund), the Value Income Stock Fund (collectively "the Equity
Funds") and the Investment Grade Bond Fund. 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 that are traded on a
national securities exchange (or reported on the NASDAQ national market
system) are valued 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.
Foreign securities in the International Equity Fund are valued based upon
quotations from the primary market in which they are traded.
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.
Securities for which market quotations are not readily available are valued
at fair value as determined in good faith by, or in accordance with
procedures approved by, the Board of Trustees.
FEDERAL INCOME TAXES -- It is each Fund's intention to qualify as a
regulated investment company for Federal income tax purposes and distribute
all of its taxable income and net capital gains. Accordingly, no provisions
for Federal income taxes are required.
SECURITY TRANSACTIONS AND INVESTMENT INCOME -- Security transactions are
accounted for on the 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 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.
26
<PAGE>
--------------------------------------------------------------------------------
UNAUDITED
NET ASSET VALUE PER SHARE -- The net asset value per share of each Fund is
calculated on each business day. It is computed by dividing the assets of
each Fund, less its liabilities, by the number of outstanding shares. The
offering price per share for the shares of the Investment Grade Bond and
Equity Funds is the net asset value per share.
FOREIGN CURRENCY TRANSACTIONS -- With respect to the International Equity
Fund, the books and records are maintained in U.S. dollars. Foreign
currency amounts are translated into U.S. dollars on the following basis:
o market value of investment securities, assets and liabilities at the
current rate of exchange; and
o purchases and sales of investment securities, income, and expenses at the
relevant rates of exchange prevailing on the respective dates of such
transactions.
The International Equity Fund does not isolate the portion of gains and
losses on investments in equity securities that is due to changes in the
foreign exchange rates from that which is due to change in market prices of
equity securities.
The International Equity Fund reports certain foreign currency-related
transactions as components of realized gains for financial reporting
purposes, whereas such components are treated as ordinary income for
Federal income tax purposes.
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 Capital Appreciation Fund,
the Growth and Income Fund, the Mid-Cap Equity Fund, the Quality Growth
Stock Fund, the Small Cap Value Equity Fund and the Value Income Stock Fund
are declared and paid quarterly to shareholders. Distributions from net
investment income for the International Equity Fund are declared and paid
annually 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.
USE OF ESTIMATES -- The preparation of the financial statements in
conformity with generally accepted accounting principles requires
management to make estimates and assumptions that effect the reported
amount of assets and liabilities, disclosure of contingent assets and
liabilities at the date of the financial statements, and reported amounts
of revenues and expenses during the reporting period. Actual amounts could
differ from these estimates.
3. Administration and Distribution Agreements
The Trust and SEI Investments Mutual Funds Services (the "Administrator") are
parties to an administration agreement (the "Administration Agreement") dated
August 18, 1995 as amended November 19, 1997 and March 1, 1999. 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 Funds) of: .12% up to $1 billion, .09%
on the next $4 billion, .07% on the next $3 billion, .065% on the next $2
billion, and .06% for over $10 billion.
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 Investments Distribution Co. ("the Distributor") are parties
to a Distribution Agreement dated August 18, 1995. The Distributor receives no
fees for its services under this agreement.
27
<PAGE>
NOTES TO FINANCIAL STATEMENTS (Concluded)
--------------------------------------------------------------------------------
STI CLASSIC VARIABLE TRUST JUNE 30, 2000
4. Investment Advisory Agreement
Investment advisory services are provided to the Trust by Trusco Capital
Management, Inc. ("Trusco"). Under the terms of the investment advisory
agreement, Trusco is entitled to receive a fee from the Fund, computed daily and
paid monthly, at an annual rate of 1.15%, .90%, 1.25%, 1.15%, 1.00%, 1.15%,
.80%, and .74% of the average daily net assets of the Capital Appreciation Fund,
Growth and Income Fund, International Equity Fund, Mid-Cap Equity Fund, Quality
Growth Stock Fund, Small Cap Value Equity Fund, Value Income Stock Fund, and
Investment Grade Bond Fund, respectively. Trusco has voluntarily agreed to waive
all or a portion of their fees (and to reimburse Funds' expenses) in order to
limit operating expenses. Fee waivers and expense reimbursements are voluntary
and may be terminated at any time.
Effective June 30, 2000, SunTrust Banks, Inc. reorganized all of the investment
management functions of its three institutional money management units,
including SunTrust Bank, into Trusco Capital Management, Inc.
SunTrust Bank, Atlanta acts as Custodian for all the Funds except the
International Equity Fund which has a custodian agreement with the Bank of New
York. 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
In April 1998, the AICPA issued Statement of Position (SOP) No. 98-5, "Reporting
on the Costs of Start-Up Activities." This SOP provides guidance on the
financial reporting of start-up costs and organization costs and requires costs
of start-up activities and organization costs to be expensed as incurred.
Investment companies that began operations prior to June 30, 1998 can adopt the
SOP prospectively. Therefore, previously capitalized costs will continue to be
amortized over a period of sixty months. Any future start-up organization costs
will be expensed as incurred. The Trust incurred organizational costs of
approximately $55,566 which include legal fees of approximately $44,153 for
organization work performed by a law firm of which two officers of the Trust are
partners. 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 the
Distributor. Such officers are paid no fees by the Trust for serving as officers
of the Trust.
The Fund has entered into an agreement with the Distributor to manage the
investments of repurchase agreements for the Funds. For its services the
Distributor received $4,367 for the period ended June 30, 2000.
6. Investment Transactions
The cost of security purchases and the proceeds from security sales, excluding
short-term investments, for the six month period ended June 30, 2000 were as
follows:
U.S. GOVT. U.S. GOVT.
PURCHASES SALES PURCHASES SALES
(000) (000) (000) (000)
--------- -------- --------- ---------
Capital Appreciation Fund ..$ 79,639 $ 98,823 $ -- $ --
Growth and Income Fund ..... 1,047 22 -- --
International Equity Fund .. 13,599 13,526 -- --
Mid-Cap Equity Fund ........ 17,793 22,029 -- --
Quality Growth Stock Fund .. 622 6 -- --
Small Cap Value
Equity Fund ............. 1,652 2,827 -- --
Value Income Stock Fund .... 22,838 43,678 -- --
Investment Grade
Bond Fund ............... 5,417 8,572 9,847 10,233
28
<PAGE>
--------------------------------------------------------------------------------
UNAUDITED
At June 30, 2000, the total cost of securities and the net realized gains or
losses on securities sold for Federal income tax purposes was not materially
different from amounts reported for financial reporting purposes. The aggregate
gross unrealized appreciation and depreciation for securities held by the
Investment Grade Bond and Equity Funds at June 30, 2000 was as follows:
NET UNREALIZED
APPRECIATED DEPRECIATED APPRECIATION/
SECURITIES SECURITIES (DEPRECIATION)
(000) (000) (000)
-------- ---------- ----------
Capital Appreciation Fund ...... $32,134 $ (5,078) $ 27,056
Growth and Income Fund ......... 57 (47) 10
International Equity Fund ...... 1,452 (562) 890
Mid-Cap Equity Fund ............ 5,595 (1,373) 4,222
Quality Growth Stock Fund ...... 35 (25) 10
Small Cap Equity Fund .......... 916 (2,244) (1,328)
Value Income Stock Fund ........ 5,049 (10,301) (5,252)
Investment Grade Bond Fund ..... 111 (932) (821)
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.
8. Consents of Sole Shareholder
On December 29, 1999, the sole shareholder of the Growth and Income Fund (the
"Fund") approved the following appointments: SEI Investments Mutual Funds
Services to serve as Administrator of the Fund, Trusco Capital Management, Inc.
to serve as Investment Adviser to the assets of the Fund and SEI Investments
Distribution Co. to serve as Distributor of the shares of the Fund.
On December 29, 1999, the sole shareholder of the Quality Growth Stock Fund (the
"Fund") approved the following appointments: SEI Investments Mutual Funds
Services to serve as Administrator of the Fund, Trusco Capital Management, Inc.
to serve as Investment Adviser to the assets of the Fund and SEI Investments
Distribution Co. to serve as Distributor of the shares of the Fund.
29
<PAGE>
NOTES
<PAGE>
NOTES
<PAGE>
Investment Adviser:
Trusco Capital Management, Inc.
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.
Investment 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 Trusco Capital Management, Inc., an affiliate of SunTrust
Banks, Inc.
Distributor:
SEI Investments Distribution Co.
This information must be preceded or accompanied by a current prospectus for
each fund described.
