-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, MjfijU7ZYOjPHFR+WoPEFaoyAw12zHaBxI9mXRbOI+EUVDBy9iP2/Xhlw80oB9c1 o1NS/v3Y5nC+2oosTi+S1Q== 0000950109-97-002801.txt : 19970404 0000950109-97-002801.hdr.sgml : 19970404 ACCESSION NUMBER: 0000950109-97-002801 CONFORMED SUBMISSION TYPE: N-30D PUBLIC DOCUMENT COUNT: 1 CONFORMED PERIOD OF REPORT: 19970131 FILED AS OF DATE: 19970403 SROS: NONE FILER: COMPANY DATA: COMPANY CONFORMED NAME: AMSOUTH MUTUAL FUNDS CENTRAL INDEX KEY: 0000832544 STANDARD INDUSTRIAL CLASSIFICATION: [] STATE OF INCORPORATION: MA FISCAL YEAR END: 0731 FILING VALUES: FORM TYPE: N-30D SEC ACT: 1940 Act SEC FILE NUMBER: 811-05551 FILM NUMBER: 97574049 BUSINESS ADDRESS: STREET 1: 3435 STELZER RD STREET 2: STE 1000 CITY: COLUMBUS STATE: OH ZIP: 43219 BUSINESS PHONE: 8004518382 MAIL ADDRESS: STREET 1: 1900 EAST DUBLIN GRANVILLE RD CITY: COLUMBUS STATE: OH ZIP: 43229 FORMER COMPANY: FORMER CONFORMED NAME: ASO OUTLOOK GROUP DATE OF NAME CHANGE: 19920703 N-30D 1 BISYS - AMSOUTH SEMI-ANNUAL REPORT AMSOUTH MUTUAL FUNDS ==================== [LOGO OF AMSOUTH APPEARS HERE] AMSOUTH BANK OF ALABAMA Investment Advisor - -------------------------------------------------------------------------------- ------------------ SEMI-ANNUAL R E P O R T JANUARY 31, 1997 ------------------ - -------------------------------------------------------------------------------- -------------- AMSOUTH -------------- MUTUAL FUNDS -------------- BISYS Fund Services, Distributor Not FDIC Insured TABLE OF CONTENTS MESSAGE FROM THE CHAIRMAN AND INVESTMENT ADVISOR PAGE 1 STATEMENTS OF ASSETS AND LIABILITIES PAGE 18 STATEMENTS OF OPERATIONS PAGE 21 STATEMENTS OF CHANGES IN NET ASSETS PAGE 24 SCHEDULES OF PORTFOLIO INVESTMENTS PAGE 28 NOTES TO FINANCIAL STATEMENTS PAGE 52 FINANCIAL HIGHLIGHTS PAGE 58 -------------------------------------------------------------------------- THE AMSOUTH MUTUAL FUNDS, LIKE ALL MUTUAL FUNDS, ARE NOT FDIC INSURED OR INSURED BY ANY OTHER AGENCY AND ARE NOT OBLIGATIONS OR DEPOSITS OF, OR ENDORSED OR GUARANTEED BY, AMSOUTH BANK OR ANY OF ITS AFFILIATES. INVESTMENT PRODUCTS INVOLVE INVESTMENT RISK, INCLUDING THE POSSIBLE LOSS OF PRINCIPAL. -------------------------------------------------------------------------- MESSAGE FROM THE CHAIRMAN AND INVESTMENT ADVISOR Dear Shareholders: The six months ended January 31, 1997, was another excellent period for the stock market. The broad market averages were up about 25%--with the Dow Jones Industrial Average approaching the 7000 barrier. Just two years ago, the Dow was at 4000. Meanwhile, the bond market turned in very modest performance during the six-month period, with returns in the low single digits. THE ECONOMY: MODERATE STEADY GROWTH After surging in the second quarter of 1996, the U.S. economy moderated in the fall before picking up once again in the fourth quarter. On balance, the year was very much like the year before--modest growth in Gross Domestic Product coupled with relatively mild inflation. Although oil prices soared during 1996, overall inflation rates were still modest. As a result, the Federal Reserve Board was not compelled to raise or lower interest rates since our last letter in July. And yet, because the economy and interest rates moved in a narrow trading range, investors were jittery, looking for any sign of a trend. As a result, interest rates and bond prices were volatile. BONDS: BETTER DAYS AHEAD Since bond prices move inversely to interest rates, the bond market cannot advance unless rates move downward. During the six-month period, interest rates were volatile but ended the period slightly lower than where they were on July 31, 1996. We believe that the Federal Reserve is likely to be on the lookout for any early signs of growing inflationary pressures in the economy. We also believe that the Federal Reserve will react quickly, if needed, to prevent a resurgence in inflation. Therefore, our outlook on inflation and long-term interest rates remains positive. Our strategy is to keep the maturity of our portfolios longer than average to take advantage of any decrease in long-term interest rates as we move further into 1997. STOCKS: A LIKELY BREATHER In 1995, the stock market advanced about 37%. In 1996, the advance was another 23%. Between August 1, 1996, and January 31, 1997, the period of this report, the Standard & Poor's 500 Index rose 24%. These returns reflect the stable economy, low inflation, strong corporate profits and a continuing inflow of cash into the stock market. At this point, however, it is unlikely that stocks can continue to rise at such a pace. Dividend yields on the S&P 500 Index are below 2% for the first time in history. Stock prices are approaching twenty times 1997 projected earnings. Indeed, the stock market is already discounting much of the foreseeable good news. As a result, the slightest disappointment in the economy, inflation or earnings may prove problematic for stock investors. -1- WELL POSITIONED FOR THE FUTURE Our strategy for stocks is to search for companies that will hold up well in a less exuberant market. In addition, our portfolios are broadly diversified across the economy in an attempt to reduce risk. For bonds, we are seeking opportunities to maximize returns by lengthening maturities when it is appropriate to do so, and by choosing sectors most likely to retain credit quality in the event of an economic slowdown. IN CLOSING . . . In the pages that follow, you will find a detailed discussion of the performance of each of the AmSouth Mutual Funds during the six months ended January 31, 1997. To get a complete picture of the portfolio in which you have invested, we call your attention to the Schedule of Portfolio Investments, which lists every security in your Fund. We thank you for your continued confidence in us. We look forward to providing you with excellent investment management and to serving your investment needs now and in the future. As always, if you would like a prospectus, have any questions or require any assistance, please don't hesitate to call us at 1-800-451-8382. Sincerely, /s/ Sean M. Kelly Sean M. Kelly AmSouth Bank of Alabama Chairman Investment Advisor AmSouth Mutual Funds For more complete information on any of the AmSouth Mutual Funds, including charges and expenses, call 1-800-451-8382 for a prospectus, which you should read carefully before you invest or send money. Shares are distributed by BISYS Fund Services. -2- THE AMSOUTH EQUITY FUND Equity Fund Value of a $10,000 Investment [GRAPH OF EQUITY FUND APPEARS HERE]
AmSouth Equity Fund* S&P 500 Index ------------------- ------------- 12/1/88 9,551 10,000 7/89 11,849 12,980 7/90 12,046 13,822 7/91 13,065 15,577 7/92 14,757 17,555 7/93 16,794 19,084 7/94 18,121 20,069 7/95 21,613 25,307 7/96 24,010 29,378 1/31/97 27,448 36,473
- -------------------------------------------------------------------------------- Average Annual Total Return* - -------------------------------------------------------------------------------- Since Inception 1 Year 5 Year (12/1/88) - -------------------------------------------------------------------------------- 1/31/97 11.45% 13.65% 13.15% - -------------------------------------------------------------------------------- 12/31/96 10.53% 13.05% 12.77% - --------------------------------------------------------------------------------
The performance of the AmSouth Equity Fund is measured against the S&P 500 Index, an unmanaged index generally representative of the U.S. stock market. The index does not reflect the deduction of expenses associated with a mutual fund, such as investment-management and fund-accounting fees. However, the Fund's performance reflects the deduction of fees for these value-added services. During the period shown, the Fund waived fees for various expenses. Had these waivers not been in place, performance quoted would have been lower. Past performance is not predictive of future results. The investment return and NAV will fluctuate, so that an investor's shares, when redeemed, may be worth more or less than the original cost. *Reflects 4.50% sales charge. The AmSouth Equity Fund is managed by Pedro Verdu, CFA. Mr. Verdu has more than 25 years of investment experience as an analyst and portfolio manager. He holds an MBA in finance and a bachelor's degree in economics. A NARROW ADVANCE For the six months ended January 31, 1997, the AmSouth Equity Fund produced a total return of 14.32% (without the sales charge).+ In comparison, the S&P 500 Index rose 24.15%. The Fund trailed the S&P 500 due to the narrowness of the market advance. Relatively few stocks carried most of the performance of the S&P 500, and those stocks were largely in sectors such as technology that we underweighted because valuation levels were extremely high.** HEALTH CARE, ENERGY AND FINANCIAL SERVICES OUTPERFORM The Fund included many companies in the health care/pharmaceuticals and energy industries, two areas that outperformed during the six-month period. In pharmaceuticals, Bristol-Myers Squibb Co. (1.85% of the portfolio) represents the type of stock that investors flock to in a slowing economic environment because it's a high-quality, large-capitalization, internationally recognized growth company.** + The Fund's total return with a maximum 4.50% sales charge was 4.83% for the period. ** The composition of the Fund's holdings is subject to change. -3- Energy companies performed well during the period because of rising oil prices. Under controlled United Nations authority, Iraq was allowed to sell oil to buy food and medicine--and most industry observers expected this to have a depressing impact on oil prices. Instead, producers allowed their inventories to get very low, and prices surged when there was an unexpected improvement in the overall level of demand. As a result, integrated oil companies such as Texaco, Inc. (2.55%) and oil service companies such as Dresser Industries, Inc. (1.05%) outperformed the market.** In banking, NationsBank (1.68%), a "superregional" based in Charlotte, North Carolina, performed well after its buyout of Boatman's Bancshares in St. Louis, which it accomplished without diluting earnings per share. Other financial service stocks such as American Express Co. (1.22%) also performed well. As of January 31, 1997, the Fund's top five holdings were Great Western Financial Corp. (2.72%), Sun Co., Inc. (2.71%), St. Paul Cos., Inc. (2.68%), Sara Lee Corp. (2.64%) and Pharmacia & Upjohn, Inc. (2.58%).** LOWERED EXPECTATIONS During the past two years, the stock market has chalked up some extraordinary returns. On a dividend-yield basis, the market has never been as richly valued. Although we don't expect a major correction, investors should not expect another spectacular year. ** The composition of the Fund's holdings is subject to change. -4- THE AMSOUTH REGIONAL EQUITY FUND Regional Equity Fund Value of a $10,000 Investment [GRAPH OF REGIONAL EQUITY FUND APPEARS HERE]
AmSouth Regional Equity Fund* S&P 500 Index ---------------- ------------- 12/1/88 9,551 10,000 7/89 11,250 12,980 7/90 12,309 13,822 7/91 13,850 15,577 7/92 16,712 17,555 7/93 19,307 19,084 7/94 20,249 20,069 7/95 23,306 25,307 7/96 26,360 29,378 1/31/97 31,359 36,473
- -------------------------------------------------------------------------------- Average Annual Total Return* - -------------------------------------------------------------------------------- Since Inception 1 Year 5 Year (12/1/88) - -------------------------------------------------------------------------------- 1/31/97 18.35% 13.50% 15.00% - -------------------------------------------------------------------------------- 12/31/96 14.72% 13.12% 14.61% - --------------------------------------------------------------------------------
The performance of the AmSouth Regional Equity Fund is measured against the S&P 500 Index, an unmanaged index generally representative of the U.S. stock market. The index does not reflect the deduction of expenses associated with a mutual fund, such as investment-management and fund-accounting fees. However, the Fund's performance reflects the deduction of fees for these value-added services. During the period shown, the Fund waived fees for various expenses. Had these waivers not been in place, performance quoted would have been lower. Past performance is not predictive of future results. The investment return and NAV will fluctuate, so that an investor's shares, when redeemed, may be worth more or less than the original cost. *Reflects 4.50% sales charge. The AmSouth Regional Equity Fund is managed by Pedro Verdu, CFA. Mr. Verdu has more than 25 years of investment experience as an analyst and portfolio manager. He holds an MBA in finance and a bachelor's degree in economics. THE SOUTH: A BOOMING ECONOMY For the six months ended January 31, 1997, the AmSouth Regional Equity Fund produced a total return of 18.96% (without the sales charge).+ In comparison, the S&P 500 Index rose 24.15%. The booming southeastern United States economy is characterized by a heavy emphasis on soft goods manufacturing, health care and financial services. The region is underweighted in technology and consumer durables such as automobiles and appliances. BANKS, HOSPITALS AND RETAILERS SHINE The Regional Equity Fund lagged the S&P 500 primarily due to its under- representation in technology. However, the second-best performing area of the S&P 500--financial services--is heavily represented in the portfolio. Banks such as NationsBank (2.15% of the portfolio), First Union Corp. (2.43%) and First Tennessee National Corp. (2.02%) posted excellent results for the period.** + The Fund's total return with a maximum 4.50% sales charge was 13.60% for the period. ** The composition of the Fund's holdings is subject to change. There may be additional risks associated with investing in companies in one geographic location. -5- Another strong industry was medical services--companies such as Healthsouth Corp. (7.25%), a provider of rehabilitation services, and Health Management Associates (3.49%), a company that manages acute care hospitals, outperformed the S&P 500.** CONTROLLING INVENTORIES Bucking a national trend, the retail industry performed well in the portfolio, with SteinMart Inc. (2.51%), an operator of off-price apparel stores, chalking up the best performance in the group. Earnings were stronger because the major department-store companies controlled their inventories much better in 1996 and didn't need to run as many competitive promotional sales. Another retailer, Hancock Fabrics Inc. (2.03%), an owner of fabric stores throughout the South and Midwest, has been able to increase market share as weaker competitors fall by the wayside.** As of January 31, 1997, the Fund's top five holdings were Healthsouth Corp. (7.25%), Health Management Assoc., Inc. (3.49%), Scientific-Atlanta, Inc. (2.84%), BellSouth Corp. (2.58%) and Flowers Industries, Inc. (2.57%).** RECORD EMPLOYMENT Although the economy of the Southeast has slowed in recent months, it still appears stronger than the national economy. Many metropolitan areas are enjoying record low unemployment, spurring a continuing immigration of residents from other parts of the country. We believe that the region's economic prospects remain bright. ** The composition of the Fund's holdings is subject to change. -6- THE AMSOUTH BALANCED FUND Balanced Fund Value of a $10,000 Investment [GRAPH OF BALANCED FUND APPEARS HERE]
Lehman Brothers Government/Corporate AmSouth Balance Fund* S&P 500 Index Bond Index --------------------- ------------- -------------------- 12/19/91 9,551 10,000 10,000 7/92 10,861 11,283 10,724 7/93 12,106 12,265 11,907 7/94 12,727 12,898 11,892 7/95 14,670 16,264 13,095 7/96 15,897 17,360 13,518 1/31/97 17,444 21,552 14,161
- -------------------------------------------------------------------------------- Average Annual Total Return* - -------------------------------------------------------------------------------- Since Inception 1 Year 5 Year (12/19/91) - -------------------------------------------------------------------------------- 1/31/97 4.68% 10.33% 11.47% - -------------------------------------------------------------------------------- 12/31/96 4.82% 8.12% 11.20% - --------------------------------------------------------------------------------
The performance of the AmSouth Balanced Fund is measured against the S&P 500 Index, an unmanaged index generally representative of the U.S. stock market, and the Lehman Brothers Government/Corporate Bond Index, an unmanaged broad-based index representative of the total return of long-term government and corporate bonds. The indices do not reflect the deduction of expenses associated with a mutual fund, such as investment-management and fund-accounting fees. However, the Fund's performance reflects the deduction of fees for these value-added services. During the period shown, the Fund waived fees for various expenses. Had these waivers not been in place, performance quoted would have been lower. Past performance is not predictive of future results. The investment return and NAV will fluctuate, so that an investor's shares, when redeemed, may be worth more or less than the original cost. *Reflects 4.50% sales charge. The AmSouth Balanced Fund is managed by Pedro Verdu, CFA. Mr. Verdu has more than 25 years of investment experience as an analyst and portfolio manager. He holds an MBA in finance and a bachelor's degree in economics. STOCKS GO ONE WAY, BONDS GO ANOTHER For the six months ended January 31, 1997, the AmSouth Balanced Fund produced a total return of 9.73% (without the sales charge).+ In comparison, the S&P 500 Index rose 24.15%, while the Lehman Brothers Government/Corporate Bond Index rose 4.76%. The period was unusual in that the stock-market rally was not accompanied by a rally in bonds. Throughout the latter half of 1996, we maintained roughly a 50/50 mixture of stocks and bonds.** This reflected our judgment that the risk/reward relationship in the stock market was not favorable. This judgment was partly based on a quantitative model that we employ that examines the expected returns of stocks and bonds as well as the likely variance of those returns. In addition, we examine traditional valuation measures for stocks such as the market's price/earnings ratio and dividend yield. The S&P 500's dividend yield is currently less than 2%, the lowest on record. + The Fund's total return with a maximum 4.50% sales charge was 4.83% for the period. ** The composition of the Fund's holdings is subject to change. -7- STOCKS: WINNERS INCLUDE ENERGY, FINANCIAL SERVICES AND HEALTH CARE The equity portion of the Fund emphasized energy, reflecting the rising price of oil. In financial services, the portfolio continues to benefit from the nationwide consolidation of banks and the efficiencies that result. In health care, we owned shares in companies that are demonstrating their ability to keep costs down while maintaining quality of care. As of January 31, 1997, the Fund's top five equity holdings were AMP, Inc. (1.50% of the portfolio), Sun Co., Inc. (1.46%), Baxter International, Inc. (1.44%), Sara Lee Corp. (1.34%) and St. Paul Cos., Inc. (1.33%).** BONDS: SLIGHTLY LONGER MATURITIES Because of our belief that interest rates are more likely to fall than rise, we have extended the average maturity of the bond portion of the Balanced Fund. In a period of falling interest rates, bonds with longer maturities produced greater capital appreciation. Reflecting the modest growth in the economy, the portfolio is keeping the corporate bond percentage limited to 33%, with the balance invested in U.S. Treasury bonds.** Although corporate bonds offer higher yields, there is also credit risk that is not associated with government bonds. Since the U.S. economy is in its sixth year of expansion, it becomes more and more likely that corporate credit quality could deteriorate, thus causing these bond prices to lag the performance of the Treasury market. OUTLOOK: BONDS LOOK BETTER As the Dow Jones Industrial Average vaults over 7000, all the attention has been on stocks. However, the purpose of a Balanced Fund is to participate in the equity markets while simultaneously receiving the income and stability of fixed-income securities. We believe that bond performance in 1997 will cause investors to appreciate these benefits once again. ** The composition of the Fund's holdings is subject to change. -8- THE AMSOUTH BOND FUND Bond Fund Value of a $10,000 Investment [GRAPH OF BOND FUND APPEARS HERE]
Lehman Brothers Government/Corporate Bond Fund* Bond Index ---------- -------------------- 12/1/88 9,699 10,000 7/89 10,757 11,188 7/90 11,353 11,885 7/91 12,261 13,103 7/92 14,273 15,152 7/93 15,672 16,824 7/94 15,709 16,802 7/95 17,231 18,502 7/96 17,989 19,487 1/31/97 18,804 20,415
- -------------------------------------------------------------------------------- Average Annual Total Return* - -------------------------------------------------------------------------------- Since Inception 1 Year 5 Year (12/1/88) - -------------------------------------------------------------------------------- 1/31/97 -1.20% 6.46% 8.03% - -------------------------------------------------------------------------------- 12/31/96 -0.48% 6.11% 8.12% - --------------------------------------------------------------------------------
The performance of the AmSouth Bond Fund is measured against the Lehman Brothers Government/Corporate Bond Index, an unmanaged index generally representative of the total return of long-term government and corporate bonds. The index does not reflect the deduction of expenses associated with a mutual fund, such as investment-management and fund-accounting fees. However, the Fund's performance reflects the deduction of fees for these value-added services. During the period shown, the Fund waived fees for various expenses. Had these waivers not been in place, performance quoted would have been lower. Past performance is not predictive of future results. The investment return and NAV will fluctuate, so that an investor's shares, when redeemed, may be worth more or less than the original cost. *Reflects 3.00% sales charge. The AmSouth Bond Fund is managed by Brian Sullivan, CFA. Mr. Sullivan is in charge of fixed-income investments at AmSouth Mutual Funds. He holds an MBA in finance and a bachelor's degree in economics. BONDS: MODEST RETURNS For the six months ended January 31, 1997, the AmSouth Bond Fund produced a total return of 4.53% (without the sales charge).+ In comparison, the Lehman Brothers Government/Corporate Bond Index rose 4.76%. Our performance was aided by the Fund's longer-than-average maturity. In a period of falling interest rates, bonds with longer maturities offer greater capital appreciation. LOCKING IN HIGHER RATES Typically, our strategy is to boost maturities as interest rates rise, thereby locking in the higher yields. Last summer, yields on the benchmark 30-year Treasury reached 7.2%, so such a strategy proved fruitful when interest rates fell in September. + The Fund's total return with a maximum 3.00% sales charge was 1.36% for the period. -9- Although the change in interest rates from July 31, 1996, to January 31, 1997, was relatively small, there was a great deal of volatility during the period, caused by uncertainty over the direction of the economy. The volatility created opportunities for us to purchase bonds at attractive prices. KEEPING CREDIT QUALITY HIGH The AmSouth Bond Fund invests in a mixture of U.S. Treasury securities (62% of the portfolio), government-agency securities (4%) and corporate bonds (33%). The yield advantage offered by corporate bonds over Treasuries has narrowed considerably in the past year. As a result, there is less incentive to buy these bonds. In addition, our forecast for lower interest rates suggests a slowing economy in which corporate credit quality could deteriorate. The securities within the Fund maintained an average credit quality of AA.** Although the total return for bonds was modest during the past six months, we believe that stable to declining interest rates will translate into better bond returns in 1997. Our plan is to maintain the current allocation among government securities and corporate bonds. ** The composition of the Fund's holdings is subject to change. -10- THE AMSOUTH LIMITED MATURITY FUND Limited Maturity Fund Value of a $10,000 Investment [GRAPH OF LIMITED MATURITY FUND APPEARS HERE]
AmSouth Limited Merrill Lynch 1-5 Year Maturity Fund* Government/Corporate Index --------------- -------------------------- 2/1/89 9,699 10,000 7/89 10,366 10,783 7/90 11,070 11,608 7/91 12,073 12,786 7/92 13,460 14,373 7/93 14,365 15,397 7/94 14,476 15,670 7/95 15,584 16,925 7/96 16,322 17,842 1/31/97 16,859 18,545
- -------------------------------------------------------------------------------- Average Annual Total Return* - -------------------------------------------------------------------------------- Since Inception 1 Year 5 Year (2/1/89) - -------------------------------------------------------------------------------- 1/31/97 0.13% 4.94% 6.74% - -------------------------------------------------------------------------------- 12/31/96 0.55% 4.83% 6.77% - --------------------------------------------------------------------------------
The performance of the AmSouth Limited Maturity Fund is measured against the Merrill Lynch 1-5 year Government/Corporate Index, an unmanaged index generally representative of the total return of short-term government and corporate bonds. The index does not reflect the deduction of expenses associated with a mutual fund, such as investment-management and fund-accounting fees. However, the Fund's performance reflects the deduction of fees for these value-added services. During the period shown, the Fund waived fees for various expenses. Had these waivers not been in place, performance quoted would have been lower. Past performance is not predictive of future results. The investment return and NAV will fluctuate, so that an investor's shares, when redeemed, may be worth more or less than the original cost. *Reflects 3.00% sales charge. The AmSouth Bond Fund is managed by Brian Sullivan, CFA. Mr. Sullivan is in charge of fixed-income investments at AmSouth Mutual Funds. He holds an MBA in finance and a bachelor's degree in economics. For the six months ended January 31, 1997, the AmSouth Limited Maturity Fund produced a total return of 3.29% (without the sales charge).+ In comparison, the Merrill Lynch 1-to-5 Year Government/Corporate Bond Index rose 3.94%. MORE CORPORATE BONDS EQUALS MORE YIELD . . . The Limited Maturity Fund is restricted to investing in bonds with a maturity of five years or less. Because it's easier to gauge the creditworthiness of a security maturing soon, the portfolio can include a greater proportion of corporate bonds than portfolios with longer maturities. The advantage of corporate bonds is that they generally offer more yield than government bonds in return for some credit risk. During the six-month period, the securities within the Fund maintained a credit quality of AA.** + The Fund's total return with a maximum 3.00% sales charge was 0.18% for the period. ** The composition of the Fund's holdings is subject to change. -11- . . . BUT THE CORPORATE YIELD ADVANTAGE IS DIMINISHING Our policy is to purchase corporate bonds rated A or better, diversifying our exposure so that we don't own more than 5% in any one name. In the past year, the extra yield offered by corporates over governments has compressed, as the economy continues to grow at a moderate rate. However, we have reduced the proportion of corporate bonds from 84% in July 1996 to 61% as of January 31, 1997. The reason: We are forecasting a more modest growth economy in 1997 and lower interest rates. Such an environment is often associated with weaker corporate creditworthiness. We have accomplished this shift in the portfolio by selling short-term corporates and purchasing Treasury securities in the four-to-five-year maturity range. As a result, the Fund's current maturity is 2.8 years, up from 2.0 years last summer.** INTEREST RATE VOLATILITY LIKELY TO CONTINUE Because of its shorter maturity, the AmSouth Limited Maturity Fund is the most defensive of the AmSouth fixed-income funds. It is designed to provide preservation of principal in a volatile interest-rate environment. Although we believe the general trend for interest rates is downward, we also believe that it is likely that interest-rate volatility will continue in 1997. ** The composition of the Fund's holdings is subject to change. -12- THE AMSOUTH GOVERNMENT INCOME FUND Government Income Fund Value of a $10,000 Investment [GRAPH OF GOVERNMENT INCOME FUND APPEARS HERE]
AmSouth Government Lehman Brothers Income Fund* Mortgage Index ------------------ ---------------- 10/1/93 9,699 10,000 7/31/94 9,674 9,924 7/21/95 10,489 10,798 7/31/96 11,004 11,688 1/31/97 11,549 12,316
- -------------------------------------------------------------------------------- Average Annual Total Return* - -------------------------------------------------------------------------------- Since Inception 1 Year (10/1/93) - -------------------------------------------------------------------------------- 1/31/97 0.82% 4.41% - -------------------------------------------------------------------------------- 12/31/96 0.97% 4.39% - --------------------------------------------------------------------------------
The performance of the AmSouth Government Income Fund is measured against the Lehman Brothers Mortgage Index, an unmanaged index generally representative of the mortgage bond market as a whole. The index does not reflect the deduction of expenses associated with a mutual fund, such as investment-management and fund-accounting fees. However, the Fund's performance reflects the deduction of fees for these value-added services. During the period shown, the Fund waived fees for various expenses. Had these waivers not been in place, performance quoted would have been lower. Past performance is not predictive of future results. The investment return and NAV will fluctuate, so that an investor's shares, when redeemed, may be worth more or less than the original cost. *Reflects 3.00% sales charge. The AmSouth Government Income Fund is managed by John Boston, CFA, a vice president and trust investment officer with AmSouth Bank. In addition to serving as a portfolio manager for the AmSouth Mutual Funds, Mr. Boston also manages several large institutional portfolios within the AmSouth Trust Department. The AmSouth Government Income Fund is a mixture of mortgage-backed securities, principally Ginnie Maes, and intermediate- to long-term U.S. Treasury bonds. Ginnie Maes, which offer significantly higher yields than Treasuries, are the highest quality mortgage-backed securities because they are the only type to be backed by the full faith and credit of the U.S. Government. For the six months ended January 31, 1997, the Government Income Fund produced a total return of 4.95% (without the sales charge).+ In comparison, the Lehman Brothers Mortgage Index rose 5.37%. + The Fund's total return with a maximum 3.00% sales charge was 1.81% for the period. -13- BOOSTING GINNIE MAES During the six-month period, we increased the proportion of Ginnie Maes from 68% to 74%, with the balance invested in Treasury bonds. During the same period, the average maturity of the Fund declined from 9.8 years to 9.2 years.** In a period of falling interest rates, holders of mortgages tend to prepay, so they can refinance at a lower interest expense. As a result, a portfolio of Ginnie Maes would be likely to shorten during a falling interest-rate period. Still, the Fund's maturity at 9.2 years is still somewhat longer than the benchmark at 7.1 years and is therefore, we believe, positioned for interest rates to decline. ENJOYING HIGHER YIELDS Although prepayment risk can be significant, it does not usually become a problem unless interest rates fall substantially. Despite all the volatility in interest rates, the absolute levels of rates fell only about 0.30 percentage points from July 31, 1996, to January 31, 1997. We believe that further interest-rate declines will be similarly modest. As a result, we believe that the additional yield we are receiving from our Ginnie Mae investments more than compensates for the prepayment risk that we are incurring in a modestly declining interest-rate environment. ** The composition of the Fund's holdings is subject to change. -14- THE AMSOUTH FLORIDA TAX-FREE FUND Florida Tax-Free Fund Value of a $10,000 Investment [GRAPH OF FLORID TAX-FREE FUND APPEARS HERE]
AmSouth Florida Merrill Lynch 3-7 year Tax-Free Fund* Municipal Bond Index --------------- ---------------------- 9/30/94 9,669 10,000 1/31/95 9,737 9,998 7/31/95 10,333 11,387 7/31/96 10,771 11,394 1/31/97 11,063 11,739
- -------------------------------------------------------------------------------- Average Annual Total Return* - -------------------------------------------------------------------------------- Since Inception 1 Year (9/30/94) - -------------------------------------------------------------------------------- 1/31/97 -0.25% 4.41% - -------------------------------------------------------------------------------- 12/31/96 0.53% 4.50% - --------------------------------------------------------------------------------
The performance of the AmSouth Florida Tax-Free Fund is measured against the Merrill Lynch 3-7 Year Municipal Bond Index, an unmanaged index generally representative of intermediate-term municipal bonds. The index does not reflect the deduction of expenses associated with a mutual fund, such as investment-management and fund-accounting fees. However, the Fund's performance reflects the deduction of fees for these value-added services. During the period shown, the Fund waived fees for various expenses. Had these waivers not been in place, performance quoted would have been lower. Past performance is not predictive of future results. The investment return and NAV will fluctuate, so that an investor's shares, when redeemed, may be worth more or less than the original cost. *Reflects 3.00% sales charge. The AmSouth Florida Tax-Free Fund is managed by Dotty Thomas, who has 14 years of experience as an investment portfolio manager for municipal bond accounts, personal trusts and endowments. She holds degrees from Stanford University and the University of Alabama. For the six months ended January 31, 1997, the Florida Tax-Free Fund produced a total return of 2.71% (without the sales charge).+ In comparison, the Merrill Lynch 3-to-7 Year Municipal Bond Index rose 3.03%. A FOCUS ON QUALITY The Florida municipal bond market is one of the largest in the nation, with a plentiful supply of new issues coming to market. Most of these issues come to market as insured bonds, which receive AAA ratings. We continue to concentrate on the highest quality bonds, since the market is not compensating us adequately to buy lower quality. For example, we avoid hospital issues, a sector that has been under pressure due to changes in the funding of our health-care system. + The Fund's total return with a maximum 3.00% sales charge was -0.39% for the period. The Fund's income may be subject to the federal alternative minimum tax and to certain state and local taxes. -15- The portfolio is extremely well diversified owning approximately 60 securities, including general obligation bonds issued by the State of Florida and the Florida Board of Education.** The economy of Florida is strong, and the state continues to attract new residents from all over the country. ATTRACTIVE YIELDS FOR HIGH INCOME TAXPAYERS Municipal bonds offer yields in the neighborhood of 70% to 80% of comparable- maturity taxable bonds. For investors in high income tax brackets, tax-free bonds offer attractive yields when compared to taxable bonds after taxes are taken into account. The concerns about tax legislation that would have diminished this advantage faded after the presidential election season. As of January 31, 1997, the average maturity of the Fund's holdings was 5.6 years.** Over the next six months, we'll take advantage of what we believe to be opportunities to add yield and potential performance by targeting our new purchases at the longer end of the fund's maturity spectrum. ** The composition of the Fund's holdings is subject to change. -16- THE AMSOUTH MONEY MARKET FUNDS The AmSouth Money Market Funds are managed by John Boston, CFA, a vice president and trust investment officer with AmSouth Bank. In addition to serving as a portfolio manager for the AmSouth Mutual Funds, Mr. Boston also manages several large institutional portfolios within the AmSouth Trust Department. A "WAIT AND SEE" POSTURE The Federal Reserve Board continues its "wait-and-see" posture, looking to see if the economy's growth rate will slow, or whether inflation will indeed return. For a year, the Fed hasn't seen convincing evidence to cause them to move interest rates up or down. As a result, money market fund yields have been relatively stable during that period. We don't see an imminent reason for a policy change from the Federal Reserve. The economy appears to be slowing from the unsustainable fourth quarter 1996 growth rate of 4.7%. The most recent inflation data indicates an easing of inflation pressures. Today's short-term interest rates are relatively high compared to the rate of inflation. From that perspective, returns from investments in money market funds are substantial. . At January 31, 1997, the Prime Obligations Fund's average maturity was 74 days, compared to 60 days on July 31, 1996.* . At January 31, 1997, the U.S. Treasury Fund's average maturity was about 60 days, compared to 64 days on July 31, 1996.* . At January 31, 1997, the Tax-Exempt Fund's average maturity was about 69 days, compared to 67 days on July 31, 1996.* *The composition of the Fund's holdings is subject to change. Investments in the Prime Obligations, the U.S. Treasury and the Tax-Exempt Money Market Funds are neither insured nor guaranteed by the U.S. Government. Although the Funds seek to maintain a stable net asset value of $1.00 per share, yields will fluctuate and there is no assurance that they will be able to do so. -17- AMSOUTH MUTUAL FUNDS STATEMENTS OF ASSETS AND LIABILITIES January 31, 1997 (Amounts in Thousands, except Per Share Amounts) (Unaudited)
PRIME U.S. TAX- OBLIGATIONS TREASURY EXEMPT FUND FUND FUND ----------- -------- ------- ASSETS: Investments, at amortized cost................ $508,819 $231,966 $82,883 Repurchase agreements, at cost................ 50,294 90,127 -- -------- -------- ------- 559,113 322,093 82,883 Interest receivable........................... 3,554 3,842 738 Prepaid expenses and other assets............. 7 13 1 -------- -------- ------- Total Assets.............................. 562,674 325,948 83,622 -------- -------- ------- LIABILITIES: Dividends payable............................. 2,390 1,217 203 Accrued expenses and other payables: Investment advisory fees.................... 198 106 13 Administration fees......................... 99 53 13 Shareholder servicing fees.................. 11 2 2 Accounting and transfer agent fees.......... 86 45 12 Other....................................... 38 37 15 -------- -------- ------- Total Liabilities......................... 2,822 1,460 258 -------- -------- ------- NET ASSETS: Capital....................................... 559,861 324,487 83,364 Accumulated undistributed net realized gains (losses) from investment transactions................. (9) 1 -- -------- -------- ------- Net Assets................................ $559,852 $324,488 $83,364 ======== ======== ======= Net Assets Classic Shares.............................. 108,985 11,559 16,390 Premier Shares.............................. 450,867 312,929 66,974 -------- -------- ------- 559,852 324,488 83,364 ======== ======== ======= Outstanding units of beneficial interest (shares) Classic Shares.............................. 108,991 11,558 16,390 Premier Shares.............................. 450,885 312,928 66,974 -------- -------- ------- 559,876 324,486 83,364 ======== ======== ======= Net asset value--offering and redemption price per share Classic Shares.............................. $ 1.00 $ 1.00 $ 1.00 ======== ======== ======= Premier Shares.............................. $ 1.00 $ 1.00 $ 1.00 ======== ======== =======
See notes to financial statements. -18- AMSOUTH MUTUAL FUNDS STATEMENTS OF ASSETS AND LIABILITIES Janaury 31, 1997 (Amounts in Thousands, except Per Share Amounts) (Unaudited)
FLORIDA LIMITED GOVERNMENT TAX- BOND MATURITY INCOME FREE FUND FUND FUND FUND -------- -------- ---------- ------- ASSETS: Investments, at value (Cost $128,909; $40,722; $13,775; and $50,896, respectively).... $130,023 $40,848 $13,797 $52,343 Interest and dividends receivable....... 2,859 463 119 715 Receivable for capital shares issued.... 3 1 -- -- Prepaid expenses and other assets....... 10 1 1 17 -------- ------- ------- ------- Total Assets........................ 132,895 41,313 13,917 53,075 -------- ------- ------- ------- LIABILITIES: Payable for capital shares redeemed..... 13 6 59 189 Dividends payable....................... 676 181 71 -- Accrued expenses and other payables: Investment advisory fees.............. 56 18 4 14 Administration fees................... 13 4 1 5 Accounting and transfer agent fees.... 17 11 10 9 Printing fees......................... -- -- -- 31 Other................................. 8 6 10 2 -------- ------- ------- ------- Total Liabilities................... 783 226 155 250 -------- ------- ------- ------- NET ASSETS: Capital................................. 131,216 42,914 14,269 51,378 Undistributed net investment income..... 15 2 (10) -- Net unrealized appreciation (deprecia- tion) from investments................. 1,114 126 22 1,447 Accumulated undistributed net realized gains (losses) from investment transactions........................... (233) (1,955) (519) -- -------- ------- ------- ------- Net Assets.......................... $132,112 $41,087 $13,762 $52,825 ======== ======= ======= ======= Outstanding units of beneficial interest (shares)............................... 12,410 3,980 1,435 5,123 ======== ======= ======= ======= Net asset value--redemption price per share.................................. $ 10.65 $ 10.32 $ 9.59 $ 10.31 ======== ======= ======= ======= Maximum Sales Charge.................... 3.00% 3.00% 3.00% 3.00% -------- ------- ------- ------- Maximum Offering Price (100%/(100%-- Maximum Sales Charge) of net asset value rounded to the nearest cent) per share.............................. $ 10.98 $ 10.64 $ 9.89 $ 10.63 ======== ======= ======= =======
See notes to financial statements. -19- AMSOUTH MUTUAL FUNDS STATEMENTS OF ASSETS AND LIABILITIES January 31, 1997 (Amounts in Thousands, except Per Share Amounts) (Unaudited)
REGIONAL EQUITY EQUITY BALANCED FUND FUND FUND -------- -------- -------- ASSETS: Investments, at value (Cost $327,372; $87,858; and $304,423, respectively)................................... $419,083 $120,397 $353,334 Interest and dividends receivable................ 1,123 193 4,066 Receivable for capital shares issued............. 21 126 158 Receivable from brokers for investments sold..... 321 -- 91 Prepaid expenses and other assets................ 26 4 14 -------- -------- -------- Total Assets................................. 420,574 120,720 357,663 -------- -------- -------- LIABILITIES: Payable for capital shares redeemed.............. 72 62 224 Dividends payable................................ 1,084 88 1,120 Accrued expenses and other payables: Investment advisory fees....................... 280 79 240 Administration fees............................ 42 12 36 Accounting and transfer agent fees............. 52 20 47 Other.......................................... 35 11 16 -------- -------- -------- Total Liabilities............................ 1,565 272 1,683 -------- -------- -------- NET ASSETS: Capital.......................................... 320,359 85,746 300,188 Undistributed net investment income.............. (10) -- 11 Net unrealized appreciation from investments..... 91,711 32,539 48,911 Accumulated undistributed net realized gains from investment transactions......................... 6,949 2,163 6,870 -------- -------- -------- Net Assets................................... $419,009 $120,448 $355,980 ======== ======== ======== Outstanding units of beneficial interest (shares)........................................ 22,206 4,966 26,534 ======== ======== ======== Net asset value--redemption price per share...... $ 18.87 $ 24.25 $ 13.42 ======== ======== ======== Maximum Sales Charge............................. 4.50% 4.50% 4.50% -------- -------- -------- Maximum Offering Price (100%/(100%--Maximum Sales Charge) of net asset value rounded to the nearest cent) per share....................................... $ 19.76 $ 25.39 $ 14.05 ======== ======== ========
See notes to financial statements. -20- AMSOUTH MUTUAL FUNDS STATEMENTS OF OPERATIONS For the Six Months Ended January 31, 1997 (Amounts in Thousands) (Unaudited)
PRIME U.S. TAX OBLIGATIONS TREASURY EXEMPT FUND FUND FUND ----------- -------- ------ INVESTMENT INCOME: Interest income.................................... $16,722 $9,077 $1,319 ------- ------ ------ Total Income..................................... 16,722 9,077 1,319 ------- ------ ------ EXPENSES: Investment advisory fees........................... 1,213 688 148 Administration fees................................ 606 344 74 Shareholder servicing fees (Classic Shares)........ 148 15 22 Custodian and accounting fees...................... 116 66 15 Legal and audit fees............................... 36 22 5 Trustees' fees and expenses........................ 7 4 1 Transfer agent fees................................ 61 49 12 Registration and filing fees....................... 3 11 2 Printing fees...................................... 22 12 2 Other.............................................. 7 4 4 ------- ------ ------ Total Expenses................................... 2,219 1,215 285 Expenses voluntarily reduced....................... (89) (9) (87) ------- ------ ------ Net Expenses..................................... 2,130 1,206 198 ------- ------ ------ Net Investment Income.............................. 14,592 7,871 1,121 ------- ------ ------ Change in net assets resulting from operations..... $14,592 $7,871 $1,121 ======= ====== ======
See notes to financial statements. -21- AMSOUTH MUTUAL FUNDS STATEMENTS OF OPERATIONS For the Six Months Ended January 31, 1997 (Amounts in Thousands) (Unaudited)
LIMITED GOVERNMENT FLORIDA BOND MATURITY INCOME TAX-FREE FUND FUND FUND FUND ------- -------- ---------- -------- INVESTMENT INCOME: Interest income.......................... $ 4,564 $1,391 $473 $1,223 Dividend income.......................... 22 17 5 50 ------- ------ ---- ------ Total Income........................... 4,586 1,408 478 1,273 ------- ------ ---- ------ EXPENSES: Investment advisory fees................. 440 145 50 169 Administration fees...................... 135 44 16 52 Custodian and accounting fees............ 29 11 8 15 Legal and audit fees..................... 10 4 3 3 Trustees' fees and expenses.............. 2 1 -- 1 Transfer agent fees...................... 23 11 9 11 Registration and filing fees............. 9 2 1 1 Printing fees............................ 11 3 3 6 Other.................................... 2 1 -- -- ------- ------ ---- ------ Total Expenses......................... 661 222 90 258 Expenses voluntarily reduced by invest- ment advisor and administrator....................... (156) (51) (35) (117) ------- ------ ---- ------ Net Expenses........................... 505 171 55 141 ------- ------ ---- ------ Net Investment Income.................... 4,081 1,237 423 1,132 ------- ------ ---- ------ REALIZED/UNREALIZED GAINS (LOSSES) FROM INVESTMENTS: Net realized gains (losses) from invest- ment transactions....................... (92) (488) 73 3 Change in unrealized appreciation (depre- ciation) from investments........................ 2,010 699 269 268 ------- ------ ---- ------ Net realized/unrealized losses from in- vestments............................... 1,918 211 342 271 ------- ------ ---- ------ Change in net assets resulting from oper- ations.................................. $ 5,999 $1,448 $765 $1,403 ======= ====== ==== ======
See notes to financial statements. -22- AMSOUTH MUTUAL FUNDS STATEMENTS OF OPERATIONS For the Six Months Ended January 31, 1997 (Amounts in Thousands) (Unaudited)
REGIONAL EQUITY EQUITY BALANCED FUND FUND FUND ------- -------- -------- INVESTMENT INCOME: Interest income..................................... $ 61 $ -- $ 5,670 Dividend income..................................... 5,451 1,220 2,618 ------- ------- ------- Total Income...................................... 5,512 1,220 8,288 ------- ------- ------- EXPENSES: Investment advisory fees............................ 1,616 433 1,428 Administration fees................................. 405 108 358 Custodian and accounting fees....................... 73 20 70 Legal and audit fees................................ 28 7 24 Trustees' fees and expenses......................... 5 1 5 Transfer agent fees................................. 50 23 49 Registration and filing fees........................ 17 4 8 Printing fees....................................... 13 4 12 Other............................................... 4 1 5 ------- ------- ------- Total Expenses.................................... 2,211 601 1,959 Expenses voluntarily reduced by administrator....... (162) (43) (143) ------- ------- ------- Net Expenses...................................... 2,049 558 1,816 ------- ------- ------- Net Investment Income............................... 3,463 662 6,472 ------- ------- ------- REALIZED/UNREALIZED GAINS FROM INVESTMENTS: Net realized gains from investment transactions..... 12,094 3,303 9,774 Change in unrealized appreciation (depreciation) from investments................................... 37,619 14,398 16,357 ------- ------- ------- Net realized/unrealized gains from investments...... 49,713 17,701 26,131 ------- ------- ------- Change in net assets resulting from operations...... $53,176 $18,363 $32,603 ======= ======= =======
See notes to financial statements. -23- AMSOUTH MUTUAL FUNDS STATEMENTS OF CHANGES IN NET ASSETS (Amounts in Thousands)
PRIME OBLIGATIONS FUND U.S. TREASURY FUND TAX EXEMPT FUND ----------------------- ----------------------- --------------------- SIX SIX SIX MONTHS YEAR MONTHS YEAR MONTHS YEAR ENDED ENDED ENDED ENDED ENDED ENDED JANUARY 31, JULY 31, JANUARY 31, JANUARY 31, JANUARY 31, JULY 31, 1997 1996 1997 1996 1997 1996 ----------- ----------- ----------- ----------- ----------- --------- (UNAUDITED) (UNAUDITED) (UNAUDITED) FROM INVESTMENT ACTIVITIES: OPERATIONS: Net investment income. $ 14,592 $ 30,615 $ 7,871 $ 19,129 $ 1,121 $ 2,068 --------- ----------- --------- ----------- ------- --------- Change in net assets resulting from operations...... 14,592 30,615 7,871 19,129 1,121 2,068 --------- ----------- --------- ----------- ------- --------- DISTRIBUTIONS TO SHAREHOLDERS: From net investment income: Classic Shares (a).... (2,807) (1,925) (276) (204) (264) (140) Premier Shares (a).... (11,785) (28,690) (7,595) (18,925) (857) (1,928) --------- ----------- --------- ----------- ------- --------- Change in net assets from shareholder distributions.......... (14,592) (30,615) (7,871) (19,129) (1,121) (2,068) --------- ----------- --------- ----------- ------- --------- CAPITAL TRANSACTIONS: Proceeds from shares issued............... 818,080 1,554,362 470,184 1,097,998 95,254 138,969 Dividends reinvested.. 3,648 7,423 506 1,973 274 531 Cost of shares redeemed............. (865,493) (1,575,841) (526,627) (1,042,485) (72,891) (136,413) --------- ----------- --------- ----------- ------- --------- Change in net assets from share transactions..... (43,765) (14,056) (55,937) 57,486 22,637 3,087 --------- ----------- --------- ----------- ------- --------- Change in net assets.... (43,765) (14,056) (55,937) 57,486 22,637 3,087 NET ASSETS: Beginning of period... 603,617 617,673 380,425 322,939 60,727 57,640 --------- ----------- --------- ----------- ------- --------- End of period......... $ 559,852 $ 603,617 $ 324,488 $ 380,425 $83,364 $ 60,727 ========= =========== ========= =========== ======= ========= SHARE TRANSACTIONS: Issued................ 818,080 1,554,362 470,184 1,097,998 95,254 138,969 Reinvested............ 3,648 7,423 506 1,973 274 531 Redeemed.............. (865,493) (1,575,841) (526,627) (1,042,485) (72,891) (136,413) --------- ----------- --------- ----------- ------- --------- Change in shares........ (43,765) (14,056) (55,937) 57,486 22,637 3,087 ========= =========== ========= =========== ======= =========
- -------- (a) Effective April 1, 1996 the Funds' existing shares, which were previously unclassified, were designated Premier Shares and the Funds commenced offering Classic Shares. See notes to financial statements. -24- AMSOUTH MUTUAL FUNDS STATEMENTS OF CHANGES IN NET ASSETS (Amounts in Thousands)
BOND FUND LIMITED MATURITY FUND -------------------- ------------------------- SIX MONTHS YEAR SIX MONTHS YEAR ENDED ENDED ENDED ENDED JANUARY 31, JULY 31, JANUARY 31, JULY 31, 1997 1996 1997 1996 ----------- -------- ------------ ----------- (UNAUDITED) (UNAUDITED) FROM INVESTMENT ACTIVITIES: OPERATIONS: Net investment income....... $ 4,081 $ 6,705 $ 1,237 $ 3,206 Net realized losses from investment transactions.... (92) (140) (488) (229) Net change in unrealized appreciation (depreciation) from investments........... 2,010 (2,348) 699 (275) -------- -------- ---------- ----------- Change in net assets resulting from operations.............. 5,999 4,217 1,448 2,702 -------- -------- ---------- ----------- DISTRIBUTIONS TO SHAREHOLDERS: From net investment income.. (4,553) (6,517) (1,387) (3,206) In excess of net investment income..................... -- -- -- (63) In excess of net realized gains...................... -- (1,025) -- -- -------- -------- ---------- ----------- Change in net assets from shareholder distributions.... (4,553) (7,542) (1,387) (3,269) -------- -------- ---------- ----------- CAPITAL TRANSACTIONS: Proceeds from shares issued. 15,842 57,993 4,369 16,713 Dividends reinvested........ 2,553 5,036 461 1,563 Cost of shares redeemed..... (20,466) (21,638) (9,809) (31,502) -------- -------- ---------- ----------- Change in net assets from share transactions........... (2,071) 41,391 (4,979) (13,226) -------- -------- ---------- ----------- Change in net assets.......... (625) 38,066 (4,918) (13,793) NET ASSETS: Beginning of period......... 132,737 94,671 46,005 59,798 -------- -------- ---------- ----------- End of period............... $132,112 $132,737 $41,087 $ 46,005 ======== ======== ========== =========== SHARE TRANSACTIONS: Issued...................... 1,486 5,396 423 1,602 Reinvested.................. 239 467 44 150 Redeemed.................... (1,913) (2,005) (949) (3,036) -------- -------- ---------- ----------- Change in shares.............. (188) 3,858 (482) (1,284) ======== ======== ========== ===========
See notes to financial statements. -25- AMSOUTH MUTUAL FUNDS STATEMENTS OF CHANGES IN NET ASSETS (Amounts in Thousands)
GOVERNMENT INCOME FUND FLORIDA TAX-FREE FUND -------------------------- ------------------------ SIX MONTHS YEAR SIX MONTHS YEAR ENDED ENDED ENDED ENDED JANUARY 31, JULY 31, JANUARY 31, JULY 31, 1997 1996 1997 1996 ------------ ----------- ------------ ---------- (UNAUDITED) (UNAUDITED) FROM INVESTMENT ACTIVITIES: OPERATIONS: Net investment income.. $ 423 $ 1,198 $ 1,132 $ 2,117 Net realized gains (losses) from investment transactions.......... 73 (352) 3 97 Net change in unrealized appreciation (depreciation) from investments........... 269 (9) 268 (169) ----------- ----------- ---------- ---------- Change in net assets resulting from operations.............. 765 837 1,403 2,045 ----------- ----------- ---------- ---------- DISTRIBUTIONS TO SHAREHOLDERS: From net investment income................ (433) (1,089) (1,256) (2,107) From net realized gains from investment transactions.......... -- -- (74) (20) Tax return of capital from investment transactions.......... -- (10) -- -- ----------- ----------- ---------- ---------- Change in net assets from shareholder distributions........... (433) (1,099) (1,330) (2,127) ----------- ----------- ---------- ---------- CAPITAL TRANSACTIONS: Proceeds from shares issued................ 1,051 5,601 6,584 10,538 Dividends reinvested... 192 574 97 134 Cost of shares redeemed.............. (3,565) (6,840) (2,798) (10,054) ----------- ----------- ---------- ---------- Change in net assets from share transactions...... (2,322) (665) 3,883 618 ----------- ----------- ---------- ---------- Change in net assets..... (1,990) (927) 3,956 536 NET ASSETS: Beginning of period.... 15,752 16,679 48,869 48,333 ----------- ----------- ---------- ---------- End of period.......... $ 13,762 $15,752 $52,825 $48,869 =========== =========== ========== ========== SHARE TRANSACTIONS: Issued................. 111 584 639 1,023 Reinvested............. 20 60 10 13 Redeemed............... (372) (715) (271) (974) ----------- ----------- ---------- ---------- Change in shares......... (241) (71) 378 62 =========== =========== ========== ==========
See notes to financial statements. -26- AMSOUTH MUTUAL FUNDS STATEMENTS OF CHANGES IN NET ASSETS (Amounts in Thousands)
EQUITY FUND REGIONAL EQUITY FUND BALANCED FUND -------------------- -------------------- -------------------- SIX MONTHS YEAR SIX MONTHS YEAR SIX MONTHS YEAR ENDED ENDED ENDED ENDED ENDED ENDED JANUARY 31, JULY 31, JANUARY 31, JULY 31, JANUARY 31, JULY 31, 1997 1996 1997 1996 1997 1996 ----------- -------- ----------- -------- ----------- -------- (UNAUDITED) (UNAUDITED) (UNAUDITED) FROM INVESTMENT ACTIVITIES: OPERATIONS: Net investment income. $ 3,463 $ 6,319 $ 662 $ 1,090 $ 6,472 $ 11,729 Net realized gains from investment transactions......... 12,094 20,434 3,303 1,891 9,774 14,292 Net change in unrealized appreciation (depreciation) from investments..... 37,619 6,857 14,398 6,486 16,357 (568) -------- -------- -------- ------- -------- -------- Change in net assets resulting from operations............. 53,176 33,610 18,363 9,467 32,603 25,453 -------- -------- -------- ------- -------- -------- DISTRIBUTIONS TO SHAREHOLDERS: From net investment income............... (3,733) (6,319) (682) (1,069) (7,120) (11,648) In excess of net investment income.... -- (7) -- -- -- -- From net realized gains from investment transactions......... (21,737) (10,800) (2,315) (755) (15,073) (7,455) -------- -------- -------- ------- -------- -------- Change in net assets from shareholder distributions.......... (25,470) (17,126) (2,997) (1,824) (22,193) (19,103) -------- -------- -------- ------- -------- -------- CAPITAL TRANSACTIONS: Proceeds from shares issued............... 66,558 140,796 17,076 26,244 44,640 93,191 Dividends reinvested.. 12,349 10,225 1,652 1,130 15,788 14,962 Cost of shares redeemed............. (62,226) (68,640) (7,230) (9,934) (53,283) (71,587) -------- -------- -------- ------- -------- -------- Change in net assets from share transactions........... 16,681 82,381 11,498 17,440 7,145 36,566 -------- -------- -------- ------- -------- -------- Change in net assets.... 44,387 98,865 26,864 25,083 17,555 42,916 NET ASSETS: Beginning of period... 374,622 275,757 93,584 68,501 338,425 295,509 -------- -------- -------- ------- -------- -------- End of period......... $419,009 $374,622 $120,448 $93,584 $355,980 $338,425 ======== ======== ======== ======= ======== ======== SHARE TRANSACTIONS: Issued................ 3,594 8,082 740 1,277 3,335 7,104 Reinvested............ 685 597 72 55 1,195 1,148 Redeemed.............. (3,329) (3,888) (313) (482) (3,961) (5,449) -------- -------- -------- ------- -------- -------- Change in shares........ 950 4,791 499 850 569 2,803 ======== ======== ======== ======= ======== ========
See notes to financial statements. -27- AMSOUTH MUTUAL FUNDS PRIME OBLIGATIONS FUND SCHEDULE OF PORTFOLIO INVESTMENTS January 31, 1997 (Amounts in Thousands) (Unaudited)
PRINCIPAL SECURITY AMORTIZED AMOUNT DESCRIPTION COST --------- --------------------------------------------------------- --------- CERTIFICATES OF DEPOSIT (7.9%): Domestic Certificate of Deposit (1.8%): $10,000 Chase Bank N.A., Delaware, 5.45%, 6/9/97................. $ 10,000 -------- Euro Certificate of Deposit (2.5%): 14,000 Toronto Dominion Bank, 5.78%, 1/13/98.................... 14,000 -------- Yankee Certificates of Deposit (3.6%): 10,000 Barclays Bank, 5.37%, 3/17/97............................ 10,000 10,000 Societe Generale, 5.45%, 2/7/97.......................... 10,000 -------- 20,000 -------- Total Certificates of Deposit 44,000 -------- COMMERCIAL PAPER--DOMESTIC (48.5%): Asset Backed (7.0%): 10,000 Cooper River Funding, Inc., 5.35%, 2/3/97................ 9,997 9,421 Greenwich Funding Corp., 5.33%, 2/13/97.................. 9,404 10,000 Greenwich Funding Corp., 5.35%, 3/10/97.................. 9,945 10,000 Peacock Funding Corp., 5.30%, 5/30/97.................... 9,826 -------- 39,172 -------- Automotive (4.4%): 10,000 Daimler-Benz North America Corp., 5.29%, 2/10/97......... 9,987 5,000 Daimler-Benz North America Corp., 5.32%, 4/11/97......... 4,949 10,000 General Motors Acceptance Corp., 5.34%, 2/5/97........... 9,994 -------- 24,930 -------- Domestic Banking (1.8%): 10,000 Banker's Trust New York Corp., 5.60%, 3/14/97............ 9,936 -------- Electric Utility (3.6%): 10,000 AES Shady Point, Inc., 5.42%, 2/14/97.................... 9,980 10,000 AES Shady Point, Inc., 5.35%, 2/20/97.................... 9,972 -------- 19,952 -------- Financial Services (14.9%): 2,500 Cooperative Assoc. of Tractor Dealers, 5.45%, 2/4/97..... 2,499
PRINCIPAL SECURITY AMORTIZED AMOUNT DESCRIPTION COST --------- --------------------------------------------------------- --------- COMMERCIAL PAPER--DOMESTIC, CONTINUED: Financial Services, continued: $10,000 Cooperative Assoc. of Tractor Dealers, 5.38%, 5/23/97.... $ 9,834 10,000 Cooperative Assoc. of Tractor Dealers, 5.42%, 7/14/97.... 9,755 5,000 General Electric Capital Corp., 5.42%, 3/3/97............ 4,977 5,000 General Electric Capital Corp., 5.55%, 3/25/97........... 4,960 4,928 International Lease Finance Corp., 5.30%, 2/5/97......... 4,925 10,000 International Lease Finance Corp., 5.28%, 3/27/97........ 9,921 5,000 International Lease Finance Corp., 5.35%, 6/23/97........ 4,894 10,000 Island Financial Puerto Rico, 5.36%, 4/25/97............. 9,876 10,000 KOC Funding Corp., 5.31%, 5/19/97........................ 9,842 5,000 Prime Asset Vehicle Ltd., 5.36%, 3/19/97................. 4,966 7,000 Sigma Finance, Inc., 5.33%, 3/5/97....................... 6,967 -------- 83,416 -------- Foreign Banking (6.1%): 5,000 Abbey National N.A., 5.05%, 3/3/97....................... 4,998 20,000 ABN-Amro N.A. Finance, Inc., 5.38%, 7/9/97............... 19,529 10,000 Toronto Dominion Holdings, 5.40%, 10/7/97................ 9,628 -------- 34,155 -------- Insurance (1.8%): 10,000 Great West Life & Annuity Insurance Co., 5.34%, 2/4/97... 9,996 -------- Pharmaceuticals (1.8%): 10,000 Glaxo-Wellcome PLC, 5.33%, 4/23/97....................... 9,880 -------- Security Brokers & Dealers (7.1%): 10,000 C.S. First Boston Corp., 5.46%*, 2/3/97.................. 10,000 10,000 C.S. First Boston Corp., 5.36%, 2/4/97................... 9,996 10,000 C.S. First Boston Corp., 5.30%, 4/2/97................... 9,912
Continued -28- AMSOUTH MUTUAL FUNDS PRIME OBLIGATIONS FUND SCHEDULE OF PORTFOLIO INVESTMENTS, CONTINUED January 31, 1997 (Amounts in Thousands) (Unaudited)
PRINCIPAL SECURITY AMORTIZED AMOUNT DESCRIPTION COST --------- --------------------------------------------------------- --------- COMMERCIAL PAPER--DOMESTIC, CONTINUED: Security Brokers & Dealers, continued: $10,000 Merrill Lynch & Co., Inc., 5.30%, 2/28/97................ $ 9,960 -------- 39,868 -------- Total Commercial Paper--Domestic 271,305 -------- COMMERCIAL PAPER--FOREIGN (6.5%): Brazil (3.9%): 10,000 Petroleo Brasileiro S.A., 5.37%, 4/7/97.................. 9,903 12,000 Petroleo Brasileiro S.A., 5.32%, 6/30/97................. 11,736 -------- 21,639 -------- Canada (0.9%): 5,000 Province of Quebec, 5.40%, 4/25/97....................... 4,938 -------- Mexico (1.7%): 10,000 Cemex, SA, 5.40%, 5/13/97................................ 9,849 -------- Total Commercial Paper--Foreign 36,426 -------- CORPORATE BONDS (9.2%): Automotive (0.9%): 5,000 Ford Capital B.V., 5.38%, 1/1/98......................... 5,156 -------- Banking--Domestic (3.5%): 5,000 First Chicago NBD, 5.70%, 1/8/98......................... 4,998 10,000 PNC Bank, N.A., 5.40%*, 4/1/97........................... 9,996 4,500 South Trust Bank Central Carolina, 5.65%, 4/4/97......... 4,498 -------- 19,492 -------- Financial Services (3.9%): 3,000 American General Finance Corp., 5.80%, 4/1/97............ 3,001 4,245 American General Finance Corp., 6.63%, 6/1/97............ 4,250 4,790 General Electric Capital Corp., 7.00%, 4/3/97............ 4,800 1,000 General Electric Capital Corp., 8.00%, 1/15/98........... 1,020 1,500 General Electric Capital Corp., 7.95%, 2/2/98............ 1,530 5,000 General Motors Acceptance Corp., 7.75%, 4/15/97.......... 5,021 2,000 PACCAR Financial Corp., 5.43%, 6/2/97.................... 1,996 -------- 21,618 --------
PRINCIPAL SECURITY AMORTIZED AMOUNT DESCRIPTION COST --------- --------------------------------------------------------- --------- CORPORATE BONDS, CONTINUED: Manufacturing--Misc. (0.2%): $ 1,000 Minnesota Mining & Manufacturing Co., 6.38%, 6/16/97..... $ 1,000 -------- Telecommunications (0.3%): 1,480 AT&T Corp., 6.13%, 4/25/97............................... 1,480 -------- U.S. Government (0.4%): 2,500 Student Loan Marketing Assoc., 5.65%, 2/6/97............. 2,498 -------- Total Corporate Bonds 51,244 -------- GUARANTEED INSURANCE CONTRACTS (4.5%): 12,500 Commonwealth Life Insurance Co., 5.64%*, 3/3/97(b)....... 12,500 12,500 Peoples Security Life Insurance Co., 5.59%*, 3/3/97(b)... 12,500 -------- Total Guaranteed Insurance Contracts 25,000 -------- MEDIUM TERM NOTES (8.6%): Automotive (1.8%): 10,000 Toyota Motor Credit Co., 5.00%, 2/26/97.................. 9,999 -------- Banking (1.7%): 7,590 Marshall & Ilsley, 7.38%, 10/31/97....................... 7,673 1,986 Suedwest Landesbank Capital Markets, 7.88%, 2/14/97...... 1,987 -------- 9,660 -------- Financial Services (5.1%): 3,000 American General Finance Note, 5.80%, 4/1/97............. 3,002 1,480 Associates Corp. of North America, 9.70%, 5/1/97......... 1,494 1,000 Associates Corp. of North America, 7.05%, 5/15/97........ 1,003 2,500 Export Finance & Insurance Corp., 6.50%, 7/1/97.......... 2,505 4,300 General Electric Capital Corp., 7.85%, 2/1/97............ 4,300 11,000 General Electric Capital Corp., 16.30%, 6/30/97.......... 11,457 5,000 International Lease Finance, 5.88%, 2/1/97............... 5,000 -------- 28,761 -------- Total Medium Term Notes 48,420 --------
Continued -29- AMSOUTH MUTUAL FUNDS PRIME OBLIGATIONS FUND SCHEDULE OF PORTFOLIO INVESTMENTS, CONTINUED January 31, 1997 (Amounts in Thousands) (Unaudited)
PRINCIPAL SECURITY AMORTIZED AMOUNT DESCRIPTION COST --------- --------------------------------------------------------- --------- MUNICIPAL BONDS (2.2%): Georgia (0.4%): $ 2,300 Emory University Project Dekalb, 5.50%, 3/13/97.......... $ 2,300 -------- New York (1.8%): 10,000 New York City, Taxable, 5.46%*, 2/24/97(b)............... 10,000 -------- Total Municipal Bonds 12,300 -------- U.S. GOVERNMENT AGENCIES (3.6%): 10,000 Federal Farm Credit Bank, 5.35%*, 4/29/97................ 9,996 10,000 Federal National Mortgage Assoc., 9.20%, 6/10/97......... 10,128 -------- Total U.S. Government Agencies 20,124 -------- Total Investments (Cost--$508,819) 508,819 --------
PRINCIPAL SECURITY AMORTIZED AMOUNT DESCRIPTION COST --------- ------------------------------------------------------- --------- REPURCHASE AGREEMENT (9.0%): $50,294 C.S. First Boston Corp., 5.55%, 2/1/97, (Collateralized by 53,548 U.S. Government Agency Securities, 5.55%, 2/3/97, market value--$52,811)........................ $ 50,294 -------- Total Repurchase Agreement 50,294 -------- Total (Cost--$559,113)(a) $559,113 ========
- -------- Percentages indicated are based on net assets of $559,852. (a) Cost and value for federal income tax and financial reporting purposes are the same. (b) Put and demand features exist allowing the Fund to require the repurchase of the instrument within variable time periods including daily, weekly, monthly, quarterly, or semiannually. * Variable rate security. Rate presented represents rate in effect at January 31, 1997. Date presented reflects next rate change date. See notes to financial statements. -30- AMSOUTH MUTUAL FUNDS U.S. TREASURY FUND SCHEDULE OF PORTFOLIO INVESTMENTS January 31, 1997 (Amounts in Thousands) (Unaudited)
PRINCIPAL SECURITY AMORTIZED AMOUNT DESCRIPTION COST --------- --------------------------------------------------------- --------- U.S. TREASURY BILLS (14.4%): $ 5,000 4.82%**, 2/6/97.......................................... $ 4,997 5,000 4.98%**, 2/20/97......................................... 4,987 25,000 5.03%**, 3/6/97.......................................... 24,885 6,000 5.48%**, 5/29/97......................................... 5,893 6,000 5.54%**, 6/26/97......................................... 5,868 -------- Total U.S. Treasury Bills 46,630 -------- U.S. TREASURY NOTES (57.1%): 36,000 4.75%, 2/15/97........................................... 35,993 55,000 6.88%, 2/28/97........................................... 55,064 5,000 6.88%, 3/31/97........................................... 5,011 20,000 8.50%, 4/15/97........................................... 20,125 16,000 6.50%, 4/30/97........................................... 16,038 12,000 6.13%, 5/31/97........................................... 12,028 5,000 8.50%, 7/15/97........................................... 5,059 10,000 5.50%, 7/31/97........................................... 10,004 5,000 6.50%, 8/15/97........................................... 5,021 5,000 6.00%, 8/31/97........................................... 5,003 6,000 6.00%, 11/30/97.......................................... 6,025 10,000 5.25%, 12/31/97.......................................... 9,965 -------- Total U.S. Treasury Notes 185,336 -------- Total Investments (Cost--$231,966) 231,966 --------
PRINCIPAL SECURITY AMORTIZED AMOUNT DESCRIPTION COST --------- ------------------------------------------------------- --------- REPURCHASE AGREEMENTS (27.8%): $45,063 First Boston Corp., 5.50%, 2/1/97, (Collateralized by 46,410 U.S. Government Agency Securities, 5.88%, 1/31/09, market value--$46,304)....................... $ 45,063 45,064 Merrill Lynch & Co., 5.50%, 2/1/97, (Collateralized by 45,969 U.S. Government Agency Securities, 10.75%, 2/15/03--5/15/03, market value--$45,970).............. 45,064 -------- Total Repurchase Agreements 90,127 -------- Total (Cost--$322,093)(a) $322,093 ========
- -------- Percentages indicated are based on net assets of $324,488. (a) Cost and value for federal income tax and financial reporting purposes are the same. ** Effective yield at date of purchase. See notes to financial statements. -31- AMSOUTH MUTUAL FUNDS TAX EXEMPT FUND SCHEDULE OF PORTFOLIO INVESTMENTS January 31, 1997 (Amounts in Thousands) (Unaudited)
PRINCIPAL SECURITY AMORTIZED AMOUNT DESCRIPTION COST --------- -------------------------------------------------------- --------- TAX ANTICIPATION NOTES (3.6%): California (1.8%): $1,500 Los Angeles County, Tax & Revenue Anticipation Note, Series A, 4.50%, 6/30/97, LOC: Credit Suisse, NY & Morgan Guaranty................................... $ 1,504 ------- Colorado (1.8%): 1,500 Colorado General Fund, Tax & Revenue Anticipation Notes, Series A, 4.50%, 6/27/97............................... 1,504 ------- Total Tax Anticipation Notes 3,008 ------- DEMAND NOTES (35.2%): Alabama (12.3%): 1,000 Alabama State Housing Finance Authority, Multi-Family Housing Revenue, Rime VLG Hoover Project, Series A, 3.55%*, 6/15/26**, FNMA...................... 1,000 150 Arab, Industrial Development Board, SCI Manufacturing, Inc., 3.70%*, 8/1/00**, LOC: Bank of Tokyo--Mitsubishi. 150 2,000 City of Birmingham, Series 1992A, Unlimited GO, 3.55%*, 5/1/19**, LOC: First Alabama Bank...................... 2,000 1,700 Columbia, Industrial Development Board, PCR, Alabama Power Co. Project, Series D, 3.65%*, 10/1/22**......... 1,700 2,000 Mobile, Industrial Development Board, PCR, Alabama Power Co. Project, Series B, 3.40%*, 8/1/17**................ 2,000 550 Montgomery, Industrial Development Board, Industrial Partners Project, 3.65%*, 1/1/07**, LOC: Wachovia Bank..................................... 550 700 North Alabama Environmental Improvement Authority, PCR, Reynolds Metals Co., 3.65%*, 12/1/00**, LOC: Bank of Nova Scotia............................... 700 2,165 Stevenson, Industrial Development Board, Environmental Improvement Revenue, Mead Corp. Project, 3.65%*, 11/1/16**, LOC: Credit Suisse.................. 2,165 ------- 10,265 ------- California (2.3%): 400 Los Angeles Regional Airport Improvement Corp., American Airlines--Los Angeles International--B, 3.65%*, 12/1/24**, LOC: Wachovia Bank.................. 400 1,500 Los Angeles Regional Airport Improvement Corp., American Airlines--Los Angeles International--D, 3.65%*, 12/1/24**, LOC: Wachovia Bank.................. 1,500 ------- 1,900 ------- Colorado (0.2%): 200 Adams County, Industrial Development Revenue, City View Park Project, 3.60%*, 12/1/15**, LOC: Barclays Bank PLC................................. 200 ------- Florida (1.8%): 1,500 Laurel Club, 3.65%*, 6/1/25**, LOC: Swiss Bank.......... 1,500 ------- Georgia (1.5%): 500 Savannah, Downtown Development Authority, Parking Facilities Project, 3.55%*, 9/1/97, SPA: National Westminster Bank PLC.......................... 500 750 Savannah, Downtown Development Authority, Parking Facilities Project, 3.55%*, 9/1/98**, SPA: National Westminster Bank PLC.......................... 750 ------- 1,250 -------
Continued -32- AMSOUTH MUTUAL FUNDS TAX EXEMPT FUND SCHEDULE OF PORTFOLIO INVESTMENTS, CONTINUED January 31, 1997 (Amounts in Thousands) (Unaudited)
PRINCIPAL SECURITY AMORTIZED AMOUNT DESCRIPTION COST --------- -------------------------------------------------------- --------- DEMAND NOTES, CONTINUED: Illinois (1.2%): $1,000 Chicago, O'Hare International Airport, General Airport 2nd Lien, Series A, 3.55%*, 1/1/15**, LOC: Societe Generale, NY................................... $ 1,000 ------- Missouri (4.0%): 200 Kansas City, Industrial Development Authority, Hospital Revenue, Research Health Services System, 3.65%*, 10/15/14**, MBIA............................... 200 585 Missouri State Industrial Development Board, Jay Henges Enterprise, Series G-2, 3.60%*, 2/1/00**, LOC: Union Bank of Switzerland......................... 585 535 Missouri State Industrial Development Board, John E. Raidel, Lot 2, Series F, 3.60%*, 2/1/04**.............. 535 2,000 St. Charles County, Industrial Development Authority, Sun River Village Apartments Project, 3.60%*, 12/1/07**, LOC: Bank of America........................ 2,000 ------- 3,320 ------- Nebraska (2.0%): 1,700 Nebraska Educational Facilities Authority, Educational Equipment & Improvements, 3.65%*, 12/1/00**, FGIC, SPA: Mitsubishi Bank, NY......................... 1,700 ------- Ohio (1.2%): 1,000 Hamilton County, Health Care System, West Park Issue, 3.55%*, 7/1/17**, LOC: Fifth Third Bank................ 1,000 ------- Pennsylvania (1.4%): 1,200 Schuylkill County, Industrial Development Authority, Resource Recovery Revenue, Gilberton Power Project, 3.55%*, 12/1/02**, LOC: Mellon Bank................................................... 1,200 ------- South Carolina (1.3%): 1,000 Piedmont Municipal Power Agency, Electric Revenue, Series C, 3.50%*, 1/1/22**, MBIA....................... 1,000 60 South Carolina State Jobs & Economic Development Authority, Economic Development Revenue, St. Francis Hospital, 3.65%*, 7/1/22**, LOC: Chase Manhattan.............................................. 60 ------- 1,060 ------- Tennessee (1.8%): 600 Metropolitan Nashville Airport Authority, Special Facilities Revenue, American Airlines PJ--Series A, 3.65%*, 10/1/12**, LOC: Credit Suisse.................. 600 900 Sullivan County, Industrial Development Board, PCR, Mead Corp. Project, 3.65%*, 10/1/16**, LOC: Union Bank of Switzerland.............................. 900 ------- 1,500 ------- Texas ( 2.2%): 300 Grapevine, Industrial Development Corp., American Airlines-A1, 3.65%*, 12/1/24**, LOC: Morgan Guaranty... 300 100 Grapevine, Industrial Development Corp., American Airlines-A3, 3.65%*, 12/1/24**, LOC: Morgan Guaranty... 100 200 Grapevine, Industrial Development Corp., American Airlines-B2, 3.65%*, 12/1/24**, LOC: Morgan Guaranty... 200 900 Lone Star Airport Improvement Authority, American Airlines-A3, 3.65%*, 12/1/14**, LOC: Royal Bank of Canada................................... 900 300 Lone Star Airport Improvement Authority, American Airlines-B3, 3.65%*, 12/1/14**, LOC: Royal Bank of Canada................................... 300 ------- 1,800 -------
Continued -33- AMSOUTH MUTUAL FUNDS TAX EXEMPT FUND SCHEDULE OF PORTFOLIO INVESTMENTS, CONTINUED January 31, 1997 (Amounts in Thousands) (Unaudited)
PRINCIPAL SECURITY AMORTIZED AMOUNT DESCRIPTION COST --------- ---------------------------------------------------------- --------- DEMAND NOTES, CONTINUED: Washington (1.2%): $1,000 Seattle, Water System Revenue, 3.70%*, 9/1/25**, LOC: Bayerische Landesbank.................................... $ 1,000 ------- West Virginia (0.8%): 700 Putnam County, Industrial Development Revenue, FMC Corp., 3.65%*, 10/1/11**, LOC: Union Bank of Switzerland........................... 700 ------- Total Demand Notes 29,395 ------- MUNICIPAL BONDS (47.7%): Alabama (1.2%): 1,000 Jacksonville, Industrial Development Board, 3.60%*, 9/1/12**, LOC: Wachovia Bank............................. 1,000 ------- Arizona (0.1%): 50 Scottsdale, Industrial Development Authority, Hospital Revenue, Scottsdale Memorial Hospital, Series A, 8.50%, 9/1/17, Pre-refunded 9/1/97 @ 102, AMBAC.................................................... 52 ------- Connecticut (2.5%): 125 Connecticut State Health & Educational Facilities Authority, St. Francis Hospital & Medical Center, Series B, 4.85%, 7/1/97, MBIA............................ 126 2,000 Connecticut State Special Assessment, Unemployment Compensation, Series C, 3.90%, 11/15/01, FGIC, Mandatory Put 7/1/97 @ 100......................................... 2,000 ------- 2,126 ------- Georgia (0.4%): 310 Georgia State, GO, Series C, 7.50%, 5/1/05, Pre-refunded 5/1/97 @ 102............................................. 319 ------- Hawaii (2.5%): 200 Hawaii State, Unlimited GO, Series BO, 6.25%, 8/1/97...... 202 500 Hawaii State, Unlimited GO, Series BP, 6.00%, 8/1/04, Pre- refunded 8/1/97 @ 102.................................... 515 400 Hawaii State, Unlimited GO, 7.30%, 4/1/05, Pre-refunded 4/1/97 @ 101.5........................................... 408 970 Kauai County, Unlimited GO, Series B, 6.70%, 2/1/97, Pre- refunded 2/1/97 @ 100, MBIA.............................. 970 ------- 2,095 ------- Illinois (6.4%): 255 Chicago, Metropolitan Water Reclamation District, Unlimited GO, 4.20%, 12/1/97............................. 256 1,100 Chicago, School Finance Authority, Series A, 4.40%, 6/1/97, MBIA.............................................. 1,102 1,400 Du Page, Water Commission, Revenue Bonds, 6.88%, 5/1/14, Pre-refunded 5/1/97 @ 102................................ 1,438 2,000 Health Facilities Authority, Highland Park Hospital, Series A, 3.50%*, 10/1/15**, FGIC........................ 2,000 100 Illinois State, Sales Tax Revenues, Series C, 6.75%, 6/15/06, Pre-refunded 6/15/97 @ 102...................... 103 100 Northwest Water Commission, Cook & Lake Counties, 6.75%, 6/15/06, Pre-refunded 5/1/97 @ 102, Mandatory Put 6/15/97 @ 102, MBIA........................ 103 300 Sauget, Regional Waste Water Treatment, 4.20%, 5/1/97, LOC: Monsanto Co......................................... 300 ------- 5,302 ------- Iowa (0.3%): 130 Burlington, Hospital Facilities, Burlington Medical Center, 4.30%, 6/1/97, FSA............................... 130 100 Sioux City, Unlimited GO, 4.10%, 6/1/97................... 100 ------- 230 -------
Continued -34- AMSOUTH MUTUAL FUNDS TAX EXEMPT FUND SCHEDULE OF PORTFOLIO INVESTMENTS, CONTINUED January 31, 1997 (Amounts in Thousands) (Unaudited)
PRINCIPAL SECURITY AMORTIZED AMOUNT DESCRIPTION COST --------- -------------------------------------------------------- --------- MUNICIPAL BONDS, CONTINUED: Kansas (0.1%): $ 100 Wichita, Hospital Revenues, St. Francis III-A-3, 5.00%, 10/1/97, MBIA.......................................... $ 101 ------- Kentucky (0.5%): 300 Campbell & Kenton Counties, Sanitation District No. 1, 7.75%, 8/15/05, Pre-refunded 8/15/97 @ 102............. 313 100 University of Louisville, Educational Buildings, Series K, 4.50%, 5/1/97, AMBAC................................ 100 ------- 413 ------- Maryland (0.2%): 125 Northeast Maryland Waste Disposal Authority, Resource Recovery Revenue, 6.75%, 1/1/98, MBIA.................. 128 ------- Massachusetts (2.2%): 1,000 Massachusetts Bay Transportation Authority, General Transportation System, Series 1984A, 3.63%*, 3/1/14**, LOC: State Street Bank & Trust............... 1,000 50 Massachusetts State, Limited GO, Limited Revenue Bonds, 6.25%, 3/1/05, Pre-refunded 3/1/97 @ 102............... 51 500 Massachusetts State, Unlimited GO, Series A, 7.88%, 6/1/97, FGIC-TCRS...................................... 507 300 Worcester, Limited GO, 6.80%, 5/15/97, MBIA............. 302 ------- 1,860 ------- Michigan (2.4%): 1,000 Detroit, Sewage Disposal Revenue, 6.75%, 7/1/01, Pre- refunded 7/1/97 @ 102, BIG............................. 1,020 200 Greater Detroit Resource Recovery Authority, Series A, 4.00%, 12/31/97, AMBAC................................. 200 775 Michigan State Hospital Finance Authority Revenue, Sisters of Mercy, 4.00%, 8/15/97, MBIA................. 775 ------- 1,995 ------- Mississippi (0.2%): 125 Long Beach, Municipal Separate School District, Unlimited GO, 9.25%, 7/1/97, MBIA...................... 128 ------- Missouri (5.6%): 100 Independence, Electric Utility, 7.00%, 6/1/97, AMBAC.... 101 100 Kansas City, Unlimited GO, 8.50%, 3/1/97................ 100 2,000 Missouri State Environmental Improvement & Energy, 3.10%, 6/1/15**, LOC: Union Bank of Switzerland........ 2,000 2,500 Missouri State Health & Education Facilities Authority, Revenue, 3.50%*, 6/1/22**, MBIA, SPA: Credit Suisse.......................................... 2,500 ------- 4,701 ------- Montana (0.1%): 100 Billings, High School District No. 2, Unlimited GO, 6.50%, 6/1/97.......................................... 101 ------- New Jersey (1.0%): 715 Pennsauken Township, Board of Education, Certificate of Participation, ETM, 7.15%, 7/15/97, BIG................ 725 100 New Jersey State Health Care Facilities, St. Clares Riverside Medical Center, 7.75%, 7/1/14, Pre-refunded 7/1/97 @ 102, BIG......................... 104 ------- 829 ------- New York (0.4%): 165 New York City, 1996 Series A, Unlimited GO, 8.00%, 11/1/00, Pre-refunded 11/1/97 @ 101.5, AMBAC........... 173 145 Oneida County, Public Improvement, Unlimited GO, 5.00%, 6/1/97, AMBAC.......................................... 145 ------- 318 -------
Continued -35- AMSOUTH MUTUAL FUNDS TAX EXEMPT FUND SCHEDULE OF PORTFOLIO INVESTMENTS, CONTINUED January 31, 1997 (Amounts in Thousands) (Unaudited)
PRINCIPAL SECURITY AMORTIZED AMOUNT DESCRIPTION COST --------- -------------------------------------------------------- --------- MUNICIPAL BONDS, CONTINUED: North Carolina (0.6%): $ 500 Greensboro, Unlimited GO, 6.00%, 3/1/97................. $ 501 ------- North Dakota (0.3%): 250 Fargo, Series C, Unlimited GO, 3.80%, 7/1/97............ 250 ------- Ohio (2.3%): 275 Clermont County, Hospital Facilities Revenue, Mercy Health System, Series B, 4.40%, 9/1/97, AMBAC.......... 276 1,000 Cleveland, Public Power System Revenue, Improvement--1st Mortgage, 8.38%, 8/1/17, Pre-refunded 8/1/97 @ 102.............................. 1,042 100 Ohio State Highway Improvements, Series R, Unlimited GO, 4.70%, 5/15/97......................................... 100 250 Ohio State Public Facility Commission, Higher Education Facilities, Series II-A, 6.25%, 5/1/97, AMBAC.......... 252 275 Ohio State Public Facility Commission, Higher Education Facilities, Series II-C, 4.70%, 12/1/97................ 277 ------- 1,947 ------- Oklahoma (2.2%): 185 Grand River Dam Authority, 6.70%, 6/1/00, Pre-refunded 6/1/97 @ 102, BIG...................................... 190 100 Grand River Dam Authority, 6.80%, 6/1/01, Pre-refunded 6/1/97 @ 102........................................... 103 500 Grand River Dam Authority, 6.80%, 6/1/03, Pre-refunded 6/1/97 @ 102........................................... 515 295 Grand River Dam Authority, 7.00%, 6/1/10, Pre-refunded 6/1/97 @ 102, BIG...................................... 305 525 Grand River Dam Authority, 6.00%, 6/1/11, Pre-refunded 6/1/97 @ 100, FSA...................................... 531 200 Tulsa, Public Facilities Authority, Ogden Martin Systems, Inc. Project, 6.25%, 5/1/97, AMBAC............ 201 ------- 1,845 ------- Pennsylvania (1.6%): 50 Allegheny County, Higher Education Building Authority, Allegheny County Community College, 6.25%, 11/1/10, Pre-refunded 11/1/97 @ 100, MBIA....................... 51 150 Berks County, Municipal Authority, 5.80%, 9/1/98, Pre- refunded 9/1/97 @ 100.................................. 152 170 Mercer County, Unlimited GO, 4.85%, 8/1/99, Pre-refunded 8/1/97 @ 100, AMBAC.................................... 171 165 North Wales, Water Authority, 7.00%, 11/1/09, Pre- refunded 11/1/97 @ 102, FGIC........................... 172 200 Pennsylvania State, First Series, Unlimited GO, 4.10%, 5/1/97................................................. 200 500 Philadelphia, Gas Works, Fourteenth Series A, 7.88%, 7/1/17**............................................... 522 100 Philadelphia, Municipal Authority, Justice Lease, Series B, 6.25%, 11/15/97, FGIC............................... 102 ------- 1,370 ------- South Carolina (0.2%): 125 Greenville County, School District, Unlimited GO, 6.50, 2/1/98................................................. 128 ------- Tennessee (1.7%): 750 Johnson City, Unlimited GO, 4.00%, 12/1/97, MBIA........ 752 500 Metropolitan Government, Nashville & Davidson County, Unlimited GO, 5.70%, 4/15/97........................... 502 75 Tennessee State, Series A, Unlimited GO, 5.80%, 6/1/97.. 75 100 Tennessee State, Series A, Unlimited GO, 5.88%, 7/1/97.. 101 ------- 1,430 -------
Continued -36- AMSOUTH MUTUAL FUNDS TAX EXEMPT FUND SCHEDULE OF PORTFOLIO INVESTMENTS, CONTINUED January 31, 1997 (Amounts in Thousands) (Unaudited)
PRINCIPAL SECURITY AMORTIZED AMOUNT DESCRIPTION COST --------- -------------------------------------------------------- --------- MUNICIPAL BONDS, CONTINUED: Texas (4.4%): $ 100 Dallas County, Hospital District Revenue, 5.00%, 5/15/97, AMBAC......................................... $ 100 300 Dallas County, Series A, Unlimited GO, 4.00%, 8/15/97... 300 1,000 Harris County, Health Facilities, Sisters of Charity Incarnate, 3.50%*, 1/1/15**, LOC: Toronto Dominion Bank................................................... 1,000 105 Lewisville, Water & Sewer Revenue, Series 1986, 7.60%, 2/15/97, AMBAC......................................... 105 465 Lubbock, Limited GO, Certificates of Obligation, 6.30%, 2/15/97................................................ 466 1,000 San Antonio, Electric & Gas Revenue, 10.50%, 2/1/13, Pre-refunded 2/1/98 @ 102.............................. 1,083 100 San Antonio, Unlimited GO, 6.30%, 8/1/97................ 101 200 Tarrant County, Health Facilities, Series B, 6.88%, 9/1/12, Pre-refunded 9/1/97 @ 102, FGIC................ 208 175 Texas State Municipal Power Agency, 6.88%, 9/1/07, Pre- refunded 9/1/97 @ 102, AMBAC........................... 182 110 Texas State Municipal Power Agency, 6.25%, 9/1/10, Pre- refunded 9/1/97 @ 102, BIG............................. 114 ------- 3,659 ------- Utah (2.8%): 115 Intermountain Power Agency, Power Supply Revenue, 1987 Series B. 6.00%, 7/1/97................................ 116 100 Intermountain Power Agency, Power Supply Revenue, Series B, 6.75%, 7/1/97....................................... 101 1,000 Intermountain Power Agency, Power Supply Revenue, Series C, 8.50%, 7/1/97, Pre-refunded 7/1/97 @ 102............ 1,043 100 Utah State, Unlimited GO, 4.90%, 7/1/97................. 101 1,000 Utah State, Unlimited GO, Series 1991 A,B,C, 5.90%, 7/1/97................................................. 1,009 ------- 2,370 ------- Washington (1.3%): 500 Washington Public Power Supply System, Nuclear Project No. 1, Series C, 7.25%, 7/1/97......................... 507 100 Washington State, Series R-94A, Unlimited GO, 3.90%, 8/1/97................................................. 100 475 Washington State, Series 1995C AT-8 & R-95B, Unlimited GO, 5.50%, 7/1/97...................................... 479 ------- 1,086 ------- West Virginia (1.3%): 1,050 West Virginia State Hospital Finance Authority, Hospital Revenue, Monongalia General Hospital Project, 8.50%, 7/1/07, Prerefunded 7/1/97 @ 100, BIG........... 1,074 ------- Wisconsin (2.9%): 150 Beloit, Sewer System Revenue, Series A, ETM, 6.60%, 7/1/97, MBIA........................................... 152 500 Milwaukee County, Series A, Unlimited GO, 4.80%, 9/1/97. 503 1,000 Municipal Insurance Commission, 8.00%, 4/1/97, AMBAC.... 1,008 175 Wisconsin State, 4.50%, 6/16/97......................... 175 50 Wisconsin State, Unlimited GO, 7.20%, 5/1/01, Pre- refunded 5/1/97 @ 101.................................. 51 500 Wisconsin State Health Facilities Authority, Meriter Hospital, Inc., ETM, 7.45%,12/1/97, FGIC............... 515 ------- 2,404 ------- Total Municipal Bonds 39,762 ------- TAX FREE COMMERCIAL PAPER (4.2%): Georgia (2.4%): 2,000 Fulton County, Hospital, 3.10%, 10/1/18, Mandatory Put 4/8/97, LOC: Trust Co. Bank............................ 2,000 -------
Continued -37- AMSOUTH MUTUAL FUNDS TAX EXEMPT FUND SCHEDULE OF PORTFOLIO INVESTMENTS, CONTINUED January 31, 1997 (Amounts in Thousands) (Unaudited)
SHARES OR PRINCIPAL SECURITY AMORTIZED AMOUNT DESCRIPTION COST --------- -------------------------------------------------------- --------- TAX FREE COMMERCIAL PAPER, CONTINUED: Washington (1.8%): $1,500 Seattle, Municipal Light & Power, 3.70%*, 11/1/15**, SPA: Morgan Guaranty Trust............................. $ 1,500 ------- Total Tax Free Commercial Paper................................... 3,500 ------- INVESTMENT COMPANIES (8.7%): 3,457 Federated Tax-Free Trust Mutual Fund.................... 3,457 3,761 Goldman Sachs Tax-Free Fund............................. 3,761 ------- Total Investment Companies........................................ 7,218 ------- Total (Cost--$82,883)(a).......................................... $82,883 =======
- -------- Percentages indicated are based on net assets of $83,364. (a) Cost for federal income tax and financial reporting purposes are the same. * Variable rate security. Rate presented represents rate in effect at January 31, 1997. Date presented reflects final maturity date. ** Put and demand feastures exist allowing the Fund to require the repurchase of the instrument within variable time periods including daily, weekly, monthly and semiannually. AMBAC--Insured by AMBAC Indemnity Corp. BIG--Bond Insurance Guaranty ETM--Escrowed to Maturity FGIC--Insured by Financial Guaranty Insurance Corp. FNMA--Insured by Federal National Mortgage Assoc. FSA--Insured by Financial Security Assurance GO--General Obligation LOC--Letter of Credit MBIA--Insured by Municipal Bond Insurance Assoc. PCR--Pollution Control Revenue PLC--Public Liability Co. SPA--Standby Purchase Agreement TCRS--Transferable Custodial Receipts See notes to financial statements. -38- AMSOUTH MUTUAL FUNDS BOND FUND SCHEDULE OF PORTFOLIO INVESTMENTS January 31, 1997 (Amounts in Thousands) (Unaudited)
PRINCIPAL SECURITY MARKET AMOUNT DESCRIPTION VALUE --------- ---------------------------------------------------------- -------- CORPORATE BONDS (32.8%): Appliances (0.4%): $ 500 Whirlpool Corp., 9.50%, 6/15/00........................... $ 544 -------- Automotive (1.9%): 1,570 Ford Capital B.V., 9.13%, 5/1/98.......................... 1,629 800 General Motors Corp., 9.63%, 12/1/00...................... 880 -------- 2,509 -------- Banking (4.2%): 1,150 BankAmerica Corp., 9.50%, 4/1/01.......................... 1,265 1,000 Bankers Trust Co., 9.50%, 6/14/00......................... 1,086 2,306 NationsBank Corp., 5.38%, 4/15/00......................... 2,234 1,000 SunTrust Banks, Inc., 7.38%, 7/1/06....................... 1,020 -------- 5,605 -------- Brokerage Services (3.0%): 1,000 Bear Stearns & Co., Inc., 6.50%, 6/15/00.................. 994 1,035 Merrill Lynch & Co., Inc., 9.00%, 5/1/98.................. 1,072 750 Merrill Lynch & Co., Inc., 8.25%, 11/15/99................ 785 1,025 Morgan Stanley Group, Inc., 9.25%, 3/1/98................. 1,059 -------- 3,910 -------- Entertainment (0.8%): 1,000 Columbia Picture Entertainment, Inc., 9.88%, 2/1/98....... 1,030 -------- Financial Services (5.0%): 500 Associates Corp., 8.63%, 6/15/97.......................... 505 1,000 Associates Corp., 6.25%, 3/15/99.......................... 1,001 2,000 Avco Financial, 5.50%, 4/1/00............................. 1,948 500 Beneficial Corp., 9.90%, 11/17/97......................... 516 1,310 British Telcom Finance, Inc., 9.38%, 2/15/99.............. 1,389 300 CIT Group Holdings, Inc., 8.75%, 7/1/97................... 304 1,000 Margaretten Financial, 6.75%, 6/15/00..................... 1,001 -------- 6,664 -------- Industrial Goods & Services (2.5%): 1,000 E. I. Dupont de Nemours & Co., 6.75%, 10/15/02............ 1,006 1,156 Rockwell International, 6.63%, 6/1/05..................... 1,136 1,200 WMX Technologies, Inc., 6.38%, 12/1/03.................... 1,169 -------- 3,311 --------
PRINCIPAL SECURITY MARKET AMOUNT DESCRIPTION VALUE --------- --------------------------------------------------------- -------- CORPORATE BONDS, CONTINUED: Insurance (3.5%): $ 1,000 AON Corp., 6.88%, 10/1/99................................ $ 1,013 1,600 Capital Holding Corp., 9.20%, 4/17/01.................... 1,742 509 Chubb Corp., 8.75%, 11/15/99............................. 539 1,300 Torchmark Corp., 9.63%, 5/1/98........................... 1,351 -------- 4,645 -------- Oil & Gas Exploration & Production Services (1.2%): 1,464 BP America Inc., 9.38%, 11/1/00 ......................... 1,601 -------- Pharmaceuticals (0.8%): 1,000 McKesson Corp., 8.63%, 2/1/98 ........................... 1,025 -------- Railroads (1.9%): 1,500 Union Pacific Corp., 6.25%, 3/15/99...................... 1,494 1,000 Union Pacific Corp., 7.00%, 6/15/00...................... 1,011 -------- 2,505 -------- Utility--Electric (4.6%): 1,000 Consolidated Edison Co. of New York, Inc., 6.63%, 2/1/02. 994 470 National Rural Utilities Cooperative Finance Corp., 9.50%, 5/15/97.......................................... 475 1,500 Northern States Power Co., 7.88%, 10/1/01................ 1,575 1,000 Oklahoma Gas & Electric, 6.25%, 10/15/00................. 992 1,000 Southern California Edison Co., 5.60%, 12/15/98.......... 993 1,000 Virginia Electric & Power Co., 7.25%, 3/1/97............. 1,001 -------- 6,030 -------- Utility--Telephone (3.0%): 1,000 BellSouth Telecommunications, Inc., 6.25%, 5/15/03....... 980 2,000 GTE California, Inc., 5.63%, 2/1/01...................... 1,930 1,000 GTE Southwest, Inc., 5.82%, 12/1/99...................... 986 -------- 3,896 -------- Total Corporate Bonds 43,275 -------- U.S. GOVERNMENT AGENCIES (3.5%): Federal National Mortgage Assoc. 1,000 6.40%, 5/2/01............................................ 1,000 1,500 7.40%, 7/1/04............................................ 1,569
Continued -39- AMSOUTH MUTUAL FUNDS BOND FUND SCHEDULE OF PORTFOLIO INVESTMENTS, CONTINUED January 31, 1997 (Amounts in Thousands) (Unaudited)
PRINCIPAL SECURITY MARKET AMOUNT DESCRIPTION VALUE --------- ---------------------------------------------------------- -------- U.S. GOVERNMENT AGENCIES, CONTINUED: Federal National Mortgage Assoc.: $ 2,000 8.50%, 2/1/05............................................. $ 2,097 -------- Total U.S. Government Agencies 4,666 -------- U.S. TREASURY BONDS (55.7%): 6,000 7.50%, 11/15/01........................................... 6,296 16,000 6.38%, 8/15/02............................................ 16,060 11,000 5.75%, 8/15/03............................................ 10,633 10,000 5.88%, 11/15/05........................................... 9,579 4,000 6.50%, 10/15/06........................................... 3,994 5,000 7.50%, 11/15/16........................................... 5,340 23,500 6.25%, 8/15/23............................................ 21,663 -------- Total U.S. Treasury Bonds 73,565 --------
SHARES OR PRINCIPAL SECURITY MARKET AMOUNT DESCRIPTION VALUE --------- ---------------------------------------------------------- -------- U.S. TREASURY STRIPS (5.7%): $11,000 6.51%, 2/15/04............................................ $ 7,043 2,000 6.87%, 2/15/17............................................ 498 -------- Total U.S. Treasury Strips 7,541 -------- MEDIUM TERM NOTE (0.0%): 25 Associates Corp. N.A., 6.00%, 3/15/99..................... 25 -------- Total Medium Term Note 25 -------- INVESTMENT COMPANY (0.7%): 951 AmSouth Prime Obligations Fund............................ 951 -------- Total Investment Company 951 -------- Total (Cost--$128,909)(a) $130,023 ========
- -------- Percentages indicated are based on net assets of $132,112. (a) Represents cost for federal income tax purposes and differs from value by net unrealized appreciation of securities as follows: Unrealized appreciation........ $ 2,476 Unrealized depreciation........ (1,362) ------- Net unrealized appreciation.... $ 1,114 =======
See notes to financial statements. -40- AMSOUTH MUTUAL FUNDS LIMITED MATURITY FUND SCHEDULE OF PORTFOLIO INVESTMENTS January 31, 1997 (Amounts in Thousands) (Unaudited)
PRINCIPAL SECURITY MARKET AMOUNT DESCRIPTION VALUE --------- ----------------------------------------------------------- ------- CORPORATE BONDS (60.2%): Banking (9.6%): 2,000 First Union Corp., 6.75%, 1/15/98.......................... $ 2,016 1,040 NationsBank Corp., 6.63%, 1/15/98.......................... 1,048 900 Wachovia Bank, 6.30%, 3/15/01.............................. 890 ------- 3,954 ------- Beverages (3.6%): 1,500 PepsiCo, Inc., 5.46%, 7/1/98............................... 1,488 ------- Electric Utility (11.0%): 600 Baltimore Gas & Electric, 5.50%, 7/15/00................... 582 2,000 Florida Power & Light, 5.70%, 3/5/98....................... 1,993 1,950 Georgia Power, 6.13%, 9/1/99............................... 1,940 ------- 4,515 ------- Electrical & Electronic (4.9%): 2,000 Sony Capital Corp., 6.98%, 7/2/97.......................... 2,012 ------- Financial Services (16.5%): 1,200 Associates Corp. of North America, 7.50%, 5/15/99.......... 1,232 2,000 Avco Financial Services, Inc., 5.50%, 5/1/98............... 1,989 2,000 Beneficial Corp., 7.32%, 11/17/99.......................... 2,045 1,500 Ford Motor Credit Corp., 6.00%, 3/24/98.................... 1,503 ------- 6,769 -------
PRINCIPAL AMOUNT SECURITY MARKET OR SHARES DESCRIPTION VALUE --------- ----------------------------------------------------------- ------- CORPORATE BONDS, CONTINUED: Food Products (4.5%): 1,850 Grand Metro Investment, 6.50%, 9/15/99..................... $ 1,857 ------- Insurance (5.0%): 2,000 American General Corp., 7.70%, 10/15/99.................... 2,062 ------- Leasing (5.1%): 2,000 USL Capital Corp., 8.13%, 2/15/00.......................... 2,080 ------- Total Corporate Bonds 24,737 ------- U.S. GOVERNMENT AGENCY (2.4%): 1,000 Federal Home Loan Mortgage Corp., 5.75%, 11/16/98.......... 996 ------- Total U.S. Government Agency 996 ------- U.S. TREASURY NOTES (35.6%): 10,500 6.63%, 7/31/01............................................. 10,645 4,000 6.13%, 12/31/01............................................ 3,973 ------- Total U.S. Treasury Notes 14,618 ------- INVESTMENT COMPANY (1.2%): 497 AmSouth Prime Obligations Fund............................. 497 ------- Total Investment Company 497 ------- Total (Cost--$40,722)(a) $40,848 =======
- -------- Percentages indicated are based on net assets of $41,087. (a) Represents cost for federal income tax purposes and differs from value by net unrealized appreciation of securities as follows: Unrealized appreciation.......... $ 410 Unrealized depreciation.......... (284) ----- Net unrealized appreciation...... $ 126 =====
See notes to financial statements. -41- AMSOUTH MUTUAL FUNDS GOVERNMENT INCOME FUND SCHEDULE OF PORTFOLIO INVESTMENTS January 31, 1997 (Amounts in Thousands) (Unaudited)
PRINCIPAL SECURITY MARKET AMOUNT DESCRIPTION VALUE --------- ------------------------------------------------------------- ------ U.S. GOVERNMENT AGENCIES (73.8%): Government National Mortgage Assoc. $ 61 9.50%, 5/15/18, Pool #237920................................. $ 65 88 9.00%, 6/15/18, Pool #251674................................. 92 114 9.00%, 8/15/18, Pool #256195................................. 120 107 9.50%, 2/15/19, Pool #229511................................. 115 184 9.50%, 6/15/19, Pool #273497................................. 198 17 9.50%, 7/15/19, Pool #272490................................. 18 199 9.00%, 10/15/19, Pool #282314................................ 209 77 9.00%, 10/15/19, Pool #265423................................ 81 64 8.50%, 12/15/19, Pool #192962................................ 67 134 9.00%, 12/15/19, Pool #155126................................ 141 124 9.00%, 1/15/20, Pool #145478................................. 130 66 9.00%, 3/15/20, Pool #281980................................. 69 97 9.00%, 5/15/20, Pool #282467................................. 102 74 9.50%, 5/15/20, Pool #288952................................. 79 318 9.50%, 9/15/20, Pool #287187................................. 342 32 9.50%, 9/15/20, Pool #210730................................. 34 158 8.50%, 11/15/20, Pool #296517................................ 164 75 9.00%, 11/15/20, Pool #293865................................ 79 175 9.50%, 11/15/20, Pool #299157................................ 188 241 9.50%, 11/15/20, Pool #282659................................ 259 11 9.50%, 12/15/20, Pool #297517................................ 11 63 9.50%, 12/15/20, Pool #295078................................ 68 22 9.50%, 1/15/21, Pool #300061................................. 24 455 9.00%, 2/15/21, Pool #295094................................. 478 66 8.50%, 8/15/21, Pool #310782................................. 69 150 8.50%, 8/15/21, Pool #310287................................. 156 233 9.50%, 8/15/21, Pool #306082................................. 250 114 9.00%, 9/15/21, Pool #312637................................. 120
PRINCIPAL SECURITY MARKET AMOUNT DESCRIPTION VALUE --------- ----------------------------------------------------------- ------- U.S. GOVERNMENT AGENCIES, CONTINUED: Government National Mortgage Assoc., continued: $ 58 9.00%, 9/15/21, Pool #312960............................... $ 61 89 8.50%, 10/15/21, Pool #313828.............................. 93 148 9.00%, 10/15/21, Pool #309619.............................. 155 140 9.00%, 1/15/22, Pool #316246............................... 147 25 9.00%, 4/15/22, Pool #312880............................... 27 99 9.00%, 6/15/22, Pool #315171............................... 103 24 9.00%, 9/15/22, Pool #333385............................... 25 14 8.50%, 2/15/23, Pool #343166............................... 15 206 7.50%, 6/15/24, Pool #401000............................... 206 996 7.50%, 7/15/25, Pool #365408............................... 999 476 7.50%, 8/15/25, Pool #408478............................... 477 2,460 7.50%, 9/15/25, Pool #377615............................... 2,466 659 7.50%, 9/15/25, Pool #394478............................... 660 33 7.50%, 9/15/25, Pool #365435............................... 33 459 7.50%, 12/15/25, Pool #384943.............................. 460 493 8.00%, 7/15/26, Pool #391645............................... 504 ------- Total U.S. Government Agencies 10,159 ------- U.S. TREASURY BONDS (25.4%): 2,000 6.50%, 5/15/05............................................. 2,001 1,400 7.50%, 11/15/16............................................ 1,495 ------- Total U.S. Treasury Bonds 3,496 ------- INVESTMENT COMPANY (1.0%): 142 AmSouth U.S. Treasury Fund................................. 142 ------- Total Investment Company 142 ------- Total (Cost--$13,775)(a) $13,797 =======
- -------- Percentages indicated are based on net assets of $13,762. (a) Represents cost for federal income tax purposes and differs from value by net unrealized appreciation of securities as follows: Unrealized appreciation.......... $ 137 Unrealized depreciation.......... (115) ----- Net unrealized appreciation...... $ 22 =====
See notes to financial statements. -42- AMSOUTH MUTUAL FUNDS FLORIDA TAX-FREE FUND SCHEDULE OF PORTFOLIO INVESTMENTS January 31, 1997 (Amounts in Thousands) (Unaudited)
PRINCIPAL SECURITY MARKET AMOUNT DESCRIPTION VALUE --------- ------------------------------------------------------------ ------ FLORIDA MUNICIPAL BONDS (96.4%): $ 545 Altamonte Springs, Health Facility, 5.60%, 10/1/10.......... $ 565 500 Board of Education, Series H, 6.90%, 5/1/98................. 519 655 Brevard County, Solid Waste Disposal System, 5.63%, 4/1/08.. 660 1,000 Broward County Expressway Authority, Series A, 6.50%, 1,022 7/1/04..................................................... 1,000 Cape Coral, Special Obligation, 5.50%, 7/1/99............... 1,029 1,000 Clearwater, Water & Sewer Revenue, 4.75%, 12/1/00........... 1,016 1,000 Dade County, Aviation Authority, Series 1994 B, 6.25%, 1,096 10/1/04, AMBAC.............................................. 725 Dade County, School Board, Series A, 5.20%, 5/1/06.......... 740 1,000 Dade County, Water & Sewer Revenue, 4.70%, 10/1/99.......... 998 1,000 Davie, Water & Sewer Revenue, 5.20%, 10/1/99................ 1,025 1,000 Department of Natural Resources, Preservation 2000, 6.30%, 1,071 7/1/04, MBIA............................................... 1,000 Division of Bond Finance, Natural Reserve Preservation 2000, 1,022 Series A, 5.40%, 7/1/07, MBIA.............................. 1,000 Dunes, Community Development District, 5.00%, 10/1/98....... 1,008 1,000 Dunes, Community Development District, 5.50%, 10/1/07....... 995 500 Gulf Breeze, Local Government, 5.90%, 12/10/10.............. 523 470 Hernando County, Water & Sewer Revenue, 5.10%, 6/1/98....... 478 1,000 Hillsborough County, Board, 4.60%, 7/1/97................... 1,004 750 Hillsborough County, Environmental Land, 6.00%, 7/1/03*..... 807 1,000 Hillsborough County, Solid Waste, 5.30%, 10/1/03............ 1,039 1,000 Homestead, Special Insurance Assessment, 4.90%, 9/1/00...... 1,019 1,000 Housing Finance Agency, 6.63%, 2/1/08*...................... 1,000 810 Housing Finance Agency, Series 1995 A-1, 5.65%, 1/1/09...... 813 1,000 Indian River, Hospital Revenue, 5.50%, 10/1/11.............. 1,008 1,000 Jacksonville, District Water & Sewer, 5.20%, 10/1/02........ 1,034 500 Jacksonville, Electric Authority, St. John's River Power 537 Park, 6.95%, 10/1/04....................................... 1,000 Lake County, Sales Revenue, 5.13%, 12/1/98.................. 1,022 1,000 Lee County, Capital Improvements Revenue, Series B, 4.75%, 1,016 10/1/00.................................................... 1,000 Lee County, Local Option Gas Tax Revenue, 4.50%, 10/1/01.... 1,003 500 Manatee County School Board, 5.75%, 7/1/09.................. 525 1,000 Martin County, 3.80%, 8/1/98................................ 999 1,000 Miami Beach, Water & Sewer Revenue, 5.38%, 9/1/08........... 1,023 955 Miramar, Wastewater Improvement, Series 1994, 6.25%, 994 10/1/05.................................................... 595 Miramar, Water Improvement, 4.50%, 10/1/01.................. 542 1,000 Orange County, Sales Tax, Series A, 4.38%, 1/1/01........... 1,000 1,000 Orlando & Orange County Expressway Authority, 4.80%, 7/1/01. 1,015 1,000 Orlando Utilities, Community Water & Electric, 5.00%, 1,023 10/1/99.................................................... 1,500 Orlando Wastewater System Revenue, 4.90%, 10/1/06........... 1,499 1,000 Ormond Beach, Water & Sewer, 5.60%, 9/1/99.................. 1,037 1,000 Pasco County, Water & Sewer Revenue, Series A, 5.50%, 1,048 10/1/03, FGIC.............................................. 1,000 Pembroke Pines, Public Improvement, 4.63%, 10/1/00.......... 1,012 1,000 Polk County, Capital Improvement, 4.30%, 12/1/02............ 987 1,000 Port of Palm Beach, Revenue Bonds, 6.25%, 9/1/08............ 1,069 910 Punta Gorda, Utilities, 5.00%, 1/1/98....................... 922
Continued -43- AMSOUTH MUTUAL FUNDS FLORIDA TAX-FREE FUND SCHEDULE OF PORTFOLIO INVESTMENTS, CONTINUED January 31, 1997 Amounts in Thousands (Unaudited)
SHARES OR PRINCIPAL SECURITY MARKET AMOUNT DESCRIPTION VALUE --------- --------------------------------------------------------- ------- FLORIDA MUNICIPAL BONDS, CONTINUED: $ 455 St. Johns County, Road Development, 5.20%, 10/1/99....... $ 468 1,000 St. Johns River Management District, Water, 5.10%, 7/1/09.................................................. 988 600 St. Lucie County, Sales Tax, 4.20%, 10/1/01.............. 591 800 St. Lucie County, Sales Tax, 4.30%, 10/1/02.............. 787 625 St. Lucie County, Special Assessment, 5.10%, 11/1/04..... 627 1,000 Seminole County, Local Option Gas Tax, 5.00%, 10/1/02.... 1,024 1,000 Seminole County, School District, GO, 5.20%, 8/1/97...... 1,008 480 Smyrna Beach, Utility, 5.20%, 4/1/09..................... 479 1,000 State Sunshine Skyway, 6.60%, 7/1/08*.................... 1,064 1,000 Tallahassee, Utility System Revenue, 5.80%, 10/1/08...... 1,052 550 Tampa, Solid Waste Revenue, 4.90%, 10/1/02, FGIC......... 559 750 Tampa Water & Sewer Revenue, 5.25%, 10/1/07.............. 739 505 Venice, Health Care Revenue, 5.50%, 8/15/09.............. 513 230 Venice, Health Care Revenue, 5.60%, 8/15/10.............. 234 1,000 Volusia County, 5.30%, 6/1/01............................ 1,030 ------- Total Florida Municipal Bonds.................................... 50,927 ------- INVESTMENT COMPANIES (2.7%): 68 AmSouth Tax Exempt Fund.................................. 68 1,348 Dreyfus Florida Money Market Fund........................ 1,348 ------- Total Investment Companies....................................... 1,416 ------- Total (Cost--$50,896)(a)......................................... $52,343 =======
- -------- Percentages indicated are based on net assets of $52,825. (a) Represents cost for federal income tax purposes and differs from value by net unrealized appreciation of securities as follows: Unrealized appreciation........ $ 1,472 Unrealized depreciation........ (25) ------- Net unrealized appreciation.... $ 1,447 =======
* Put and demand features exist allowing the Fund to require the repurchase of the instrument within variable time periods including daily, weekly, monthly, or semiannually. AMBAC--Insured by AMBAC Indemnity Corp. FGIC--Insured by Financial Guaranty Insurance Corp. GO--General Obligation MBIA--Insured by Municipal Bond Insurance Assoc. See notes to financial statements. -44- AMSOUTH MUTUAL FUNDS EQUITY FUND SCHEDULE OF PORTFOLIO INVESTMENTS January 31, 1997 (Amounts in Thousands) (Unaudited)
SECURITY MARKET SHARES DESCRIPTION VALUE ------ ------------------------------------------------------------- -------- COMMON STOCKS (96.7%): Apparel (1.0%): 320 Phillips-Van Heusen.......................................... $ 4,320 -------- Automobiles (1.8%): 240 Ford Motor Co................................................ 7,710 -------- Automotive Parts (1.1%): 195 Arvin Industries, Inc........................................ 4,704 -------- Banking (6.4%): 360 Great Western Financial Corp................................. 11,385 80 J.P. Morgan & Co., Inc....................................... 8,240 65 NationsBank Corp............................................. 7,020 -------- 26,645 -------- Chemicals--Specialty (2.0%): 420 Engelhard Corp............................................... 8,347 -------- Commercial Services (0.2%): 39 ACNielsen Corp.(b)........................................... 633 -------- Computers & Peripherals (1.5%): 40 International Business Machines Corp......................... 6,290 -------- Construction (0.3%): 110 Ryland Group, Inc............................................ 1,430 -------- Containers (1.1%): 200 Rubbermaid, Inc.............................................. 4,625 -------- Cosmetics & Related (1.2%): 120 Tambrands, Inc............................................... 4,920 -------- Electronic & Electrical (3.4%): 255 AMP, Inc..................................................... 10,391 61 Avnet, Inc................................................... 3,774 -------- 14,165 -------- Financial Services (2.5%): 82 American Express Co.......................................... 5,115 230 Dun & Bradstreet Corp........................................ 5,520 -------- 10,635 -------- Food Processing & Packaging (5.0%): 327 Grand Metropolitan PLC, ADR.................................. 9,858 280 Sara Lee Corp................................................ 11,060 -------- 20,918 --------
SECURITY MARKET SHARES DESCRIPTION VALUE ------ ------------------------------------------------------------ -------- COMMON STOCKS, CONTINUED: Forest Products--Lumber, Paper (2.3%): 210 Weyerhauser Co.............................................. $ 9,555 -------- Gold & Silver Mining (1.1%): 315 Homestake Mining Co......................................... 4,449 -------- Health Care (3.5%): 122 Aetna, Inc.................................................. 9,605 105 United Healthcare Corp...................................... 5,119 -------- 14,724 -------- Industrial Services (2.1%): 253 Measurex Corp............................................... 8,760 -------- Insurance-Broker (1.8%): 70 Marsh & McLennan Cos., Inc.................................. 7,543 -------- Insurance--Property, Casualty, Health & Other (2.7%): 180 St. Paul Cos., Inc.......................................... 11,250 -------- Manufacturing (0.5%): 49 Kennametal, Inc............................................. 1,934 -------- Medical Supplies (2.0%): 185 Baxter International, Inc................................... 8,533 -------- Newspapers (4.4%): 250 Dow Jones & Co., Inc........................................ 9,906 110 Gannett Co., Inc............................................ 8,429 -------- 18,335 -------- Oil & Gas Exploration, Production & Services (9.1%): 150 Burlington Resources, Inc................................... 7,463 430 Sun Co., Inc................................................ 11,341 101 Texaco, Inc................................................. 10,693 330 USX--Marathon Group......................................... 8,786 -------- 38,283 -------- Oilfield Equipment & Services (2.3%): 130 Dresser Industries, Inc..................................... 4,404 280 McDermott International, Inc................................ 5,110 -------- 9,514 -------- Pharmaceuticals (7.2%): 120 American Home Products Corp................................. 7,605 61 Bristol-Myers Squibb Co..................................... 7,747 70 Johnson & Johnson........................................... 4,034
Continued -45- AMSOUTH MUTUAL FUNDS EQUITY FUND SCHEDULE OF PORTFOLIO INVESTMENTS, CONTINUED January 31, 1997 (Amounts in Thousands) (Unaudited)
SECURITY MARKET SHARES DESCRIPTION VALUE ------ ------------------------------------------------------------- -------- COMMON STOCKS, CONTINUED: Pharmaceuticals, continued: 290 Pharmacia & Upjohn, Inc...................................... $ 10,803 -------- 30,189 -------- Pollution Control Services & Equipment (2.4%): 275 WMX Technologies, Inc........................................ 10,072 -------- Railroad (1.2%): 100 CSX Corp..................................................... 4,850 -------- Retail (12.1%): 195 Dayton Hudson Corp........................................... 7,337 270 Dillard Department Stores, Inc., Class A..................... 8,066 62 Footstar, Inc.(b)............................................ 1,400 250 Gap, Inc..................................................... 7,188 170 May Department Stores Co..................................... 7,565 215 Melville Corp.(b)............................................ 9,299 420 Wal-Mart Stores, Inc......................................... 9,975 -------- 50,830 -------- Services (Non-Financial) (1.6%): 116 Cognizant Corp.(b)........................................... 3,727 150 Rollins, Inc................................................. 2,944 -------- 6,671 --------
SECURITY MARKET SHARES DESCRIPTION VALUE ------ ------------------------------------------------------------- -------- COMMON STOCKS, CONTINUED: Transportation Leasing & Trucking (2.5%): 240 Ryder System, Inc............................................ $ 6,840 148 USFreightways Corp........................................... 3,756 -------- 10,596 -------- Transportation--Marine (0.3%): 65 Kirby Corp.(b)............................................... 1,251 -------- Utilities--Electric & Gas (3.6%): 290 Baltimore Gas & Electric Co.................................. 7,975 325 Southern Co.................................................. 7,109 -------- 15,084 -------- Utilities--Telecommunications (6.5%): 160 AT&T Corp.................................................... 6,300 170 BellSouth Corp............................................... 7,544 131 NYNEX Corp................................................... 6,632 170 Sprint Corp.................................................. 6,927 -------- 27,403 -------- Total Common Stocks 405,168 -------- INVESTMENT COMPANY (3.3%): 13,915 AmSouth Prime Obligations Fund............................... 13,915 -------- Total Investment Company 13,915 -------- Total (Cost--$327,372)(a) $419,083 ========
- -------- Percentages indicated are based on net assets of $419,009. (a) Represents cost for federal income tax purposes and differs from value by net unrealized appreciation of securities as follows: Unrealized appreciation........ $98,087 Unrealized depreciation........ (6,376) ------- Net unrealized appreciation.... $91,711 =======
(b) Represents non-income producing security. ADR--American Depository Receipt PLC--Public Liability Co. See notes to financial statements. -46- AMSOUTH MUTUAL FUNDS REGIONAL EQUITY FUND SCHEDULE OF PORTFOLIO INVESTMENTS January 31, 1997 (Amounts in Thousands) (Unaudited)
SECURITY MARKET SHARES DESCRIPTION VALUE ------ ------------------------------------------------------------- -------- COMMON STOCKS (91.7%): Air Freight (2.5%): 60 Federal Express Corp.(b)..................................... $ 3,075 -------- Apparel (2.6%): 80 Delta Woodside Industries, Inc............................... 580 80 Russell Corp................................................. 2,580 -------- 3,160 -------- Automotive Parts (3.5%): 95 Discount Auto Parts, Inc.(b)................................. 1,781 55 Genuine Parts Co............................................. 2,427 -------- 4,208 -------- Banking (10.1%): 70 Deposit Guaranty Corp........................................ 2,196 50 First Commerce Corp.......................................... 1,994 60 First Tennessee National Corp................................ 2,430 35 First Union Corp............................................. 2,927 24 NationsBank Corp............................................. 2,592 -------- 12,139 -------- Building Materials (1.8%): 110 Interface, Inc............................................... 2,152 -------- Chemicals--Specialty (2.0%): 270 Ethyl Corp................................................... 2,362 -------- Electronic & Electrical (2.8%): 180 Scientific-Atlanta, Inc...................................... 3,420 -------- Food Processing & Packaging (4.8%): 145 Flowers Industries, Inc...................................... 3,099 145 Lance, Inc................................................... 2,646 -------- 5,745 -------- Forest Products--Lumber, Paper (3.8%): 80 Caraustar Industries, Inc.................................... 2,520 65 James River Corp. of Virginia................................ 2,088 -------- 4,608 -------- Furniture (1.0%): 105 Winsloew Furniture, Inc.(b).................................. 1,168 -------- Insurance (3.5%): 85 Equifax, Inc................................................. 2,678 40 Vesta Insurance Group, Inc................................... 1,515 -------- 4,193 --------
SECURITY MARKET SHARES DESCRIPTION VALUE ------ ------------------------------------------------------------- -------- COMMON STOCKS, CONTINUED: Manufacturing (2.4%): 75 Wolverine Tube, Inc.(b)...................................... $ 2,859 -------- Medical Services (14.0%): 210 Coventry Corp.(b)............................................ 1,680 200 HEALTHSOUTH Corp.(b)......................................... 8,725 152 Health Management Assoc., Inc.(b)............................ 4,196 120 Medpartners, Inc.(b)......................................... 2,235 -------- 16,836 -------- Oil & Gas Exploration, Production, & Services (5.7%): 40 Louisiana Land & Exploration Co.............................. 2,250 13 Mobil Corp................................................... 1,706 60 Production Operators Corp.................................... 2,910 -------- 6,866 -------- Oilfield Equipment & Services (4.7%): 160 McDermott International, Inc................................. 2,920 130 Offshore Logistics, Inc.(b).................................. 2,795 -------- 5,715 -------- Printing (2.4%): 100 John H. Harland Co........................................... 2,913 -------- Railroad (2.2%): 30 Norfolk Southern Corp........................................ 2,659 -------- Restaurants (2.5%): 110 Cracker Barrel Old Country Store, Inc........................ 2,998 -------- Retail (5.3%): 150 Books-A-Million, Inc.(b)..................................... 881 190 Hancock Fabrics, Inc......................................... 2,446 150 Stein Mart, Inc.(b).......................................... 3,019 -------- 6,346 -------- Services (Non-Financial) (1.3%): 80 Rollins, Inc................................................. 1,570 -------- Steel (4.0%): 115 Birmingham Steel Corp........................................ 2,286 50 Nucor Corp................................................... 2,600 -------- 4,886 -------- Transportation Leasing & Trucking (2.1%): 90 Ryder System, Inc............................................ 2,565 --------
Continued -47- AMSOUTH MUTUAL FUNDS REGIONAL EQUITY FUND SCHEDULE OF PORTFOLIO INVESTMENTS, CONTINUED January 31, 1997 (Amounts in Thousands) (Unaudited)
SECURITY MARKET SHARES DESCRIPTION VALUE ------ ------------------------------------------------------------- -------- COMMON STOCKS, CONTINUED: Utilities--Electric (4.1%): 80 Florida Progress Corp........................................ $ 2,480 110 Southern Co.................................................. 2,406 -------- 4,886 -------- Utilities--Telecommunications (2.6%): 70 BellSouth Corp............................................... 3,106 -------- Total Common Stocks 110,435 --------
SECURITY MARKET SHARES DESCRIPTION VALUE ------ ------------------------------------------------------------- -------- INVESTMENT COMPANIES (8.2%): 5,821 AmSouth Prime Obligations Fund............................... $ 5,821 4,141 AmSouth U.S. Treasury Fund................................... 4,141 -------- Total Investment Companies 9,962 -------- Total (Cost--$87,858)(a) $120,397 ========
- -------- Percentages indicated are based on net assets of $120,448. (a) Represents cost for federal income tax purposes and differs from value by net unrealized appreciation of securities as follows: Unrealized appreciation........ $37,362 Unrealized depreciation........ (4,823) ------- Net unrealized appreciation.... $32,539 =======
(b) Represents non-income producing security. See notes to financial statements. -48- AMSOUTH MUTUAL FUNDS BALANCED FUND SCHEDULE OF PORTFOLIO INVESTMENTS January 31, 1997 (Amounts in Thousand) (Unaudited)
PRINCIPAL SECURITY MARKET AMOUNT DESCRIPTION VALUE --------- ----------------------------------------------------------- ------- CORPORATE BONDS (18.3%): Appliances (0.1%): $ 500 Whirlpool Corp., 9.50%, 6/15/00............................ $ 544 ------- Automotive (0.9%): 1,430 Ford Capital B.V., 9.13%, 5/1/98........................... 1,484 1,000 Ford Motor Credit Corp., 5.63%, 1/15/99.................... 990 700 General Motors Corp., 9.63%, 12/1/00....................... 770 ------- 3,244 ------- Banking (3.4%): 930 BankAmerica Corp., 9.50%, 4/1/01........................... 1,023 1,000 Bankers Trust Co., 9.50%, 6/14/00.......................... 1,086 2,500 Mellon Corp., 6.30%, 6/1/00................................ 2,481 4,185 NationsBank Corp., 5.38%, 4/15/00.......................... 4,054 2,000 SunTrust Banks, Inc., 7.38%, 7/1/06........................ 2,040 1,475 Wachovia Corp., 6.63%, 11/15/06............................ 1,437 ------- 12,121 ------- Brokerage Services (1.9%): 4,000 Dean Witter Discover & Co., 6.00%, 3/1/98.................. 4,002 2,000 Merrill Lynch & Co., Inc., 6.00%, 3/1/01................... 1,950 1,000 Morgan Stanley Group, Inc., 9.25%, 3/1/98.................. 1,034 ------- 6,986 ------- Entertainment (0.3%): 1,000 Columbia Picture Entertainment, Inc., 9.88%, 2/1/98........ 1,030 ------- Financial--Commercial (1.1%): 4,000 Associates Corp. N.A., 6.75%, 7/15/01...................... 4,015 ------- Financial Services (1.9%): 1,000 American General Finance Corp., 7.70%, 11/15/97............ 1.014 500 Associates Corp., 8.63%, 6/15/97........................... 505 500 Beneficial Corp., 9.90%, 11/17/97.......................... 516 1,200 British Telecom Finance, Inc., 9.38%, 2/15/99.............. 1,272 200 CIT Group Holdings, Inc., 8.75%, 7/1/97.................... 203 1,000 Commercial Credit Co., 7.88%, 7/15/04...................... 1,055 2,000 Morgan Stanley Group, Inc., 8.10%, 6/24/02................. 2,130 ------- 6,695 -------
PRINCIPAL SECURITY MARKET AMOUNT DESCRIPTION VALUE --------- --------------------------------------------------------- -------- CORPORATE BONDS, CONTINUED: Food Products (0.3%): $ 1,000 H.J. Heinz Co., 6.75%, 10/15/99.......................... $ 1,010 -------- Industrial Goods & Services (2.7%): 500 Browning Ferris Industries, Inc., 6.10%, 1/15/03......... 484 1,000 Dresser Industries, Inc., 6.25%, 6/1/00.................. 994 2,000 Gannett Co., Inc., 5.85%, 5/1/00......................... 1,963 3,000 Monsanto Corp., 6.00%, 7/1/00............................ 2,955 1,000 WMX Technologies, Inc., 8.25%, 11/15/99.................. 1,048 2,000 WMX Technologies, Inc., 7.70%, 10/01/02.................. 2,090 -------- 9,534 -------- Insurance (1.2%): 1,000 Allstate Corp., 5.88%, 6/15/98........................... 998 1,400 Capital Holding Corp., 9.20%, 4/17/01.................... 1,524 420 Chubb Corp., 8.75%, 11/15/99............................. 445 1,200 Torchmark Corp., 9.63%, 5/1/98........................... 1,247 -------- 4,214 -------- Oil & Gas Exploration & Production Services (0.5%): 1,550 BP America, Inc., 9.38%, 11/1/00......................... 1,695 -------- Pharmaceuticals (0.3%): 1,000 McKesson Corp., 8.63%, 2/1/98............................ 1,025 -------- Retail Stores (0.6%): 2,000 Wal-Mart Stores, Inc., 6.75%, 5/15/02.................... 2,020 -------- Technology (0.5%): 1,730 Lucent Technologies, Inc., 6.90%, 7/15/01................ 1,749 -------- Utility--Electric (2.6%): 3,450 Duke Power Co., 7.00%, 6/1/00............................ 3,510 1,275 Georgia Power Co., 6.13%, 9/1/99......................... 1,269 530 National Rural Utilities Cooperative Finance Corp., 9.50%, 5/15/97.......................................... 535 2,000 Oklahoma Gas & Electric, 6.25%, 10/15/00................. 1,985 900 Pennsylvania Power & Light Co., 6.00%, 6/1/00............ 886 1,200 Virginia Electric & Power Co., 7.25%, 3/1/97............. 1,202 -------- 9,387 -------- Total Corporate Bonds 65,269 --------
Continued -49- AMSOUTH MUTUAL FUNDS BALANCED FUND SCHEDULE OF PORTFOLIO INVESTMENTS, CONTINUED January 31, 1997 (Amounts in Thousands) (Unaudited)
SHARES OR PRINCIPAL SECURITY MARKET AMOUNT DESCRIPTION VALUE --------- ----------------------------------------------------------- ------- U.S. TREASURY BONDS (9.5%): $11,000 7.50%, 11/15/16............................................ $11,747 24,000 6.25%, 8/15/23............................................. 22,124 ------- Total U.S. Treasury Bonds 33,871 ------- U.S. GOVERNMENT AGENCY (1.9%): 7,000 Federal Home Loan Mortgage Corp., 5.83%, 2/9/06............ 6,568 ------- Total U.S. Government Agency 6,568 ------- U.S. TREASURY NOTES (15.5%): 1,000 7.13%, 2/29/00............................................. 1,028 25,000 6.38%, 8/15/02............................................. 25,093 18,300 5.75%, 8/15/03............................................. 17,689 12,000 5.88%, 11/15/05............................................ 11,495 ------- Total U.S. Treasury Notes 55,305 ------- U.S. TREASURY STRIPS (2.2%): 12,000 6.42%, 2/15/04............................................. 7,684 ------- Total U.S. Treasury Strips 7,684 ------- COMMON STOCKS (49.8%): Apparel (0.5%): 140 Phillips-Van Heusen........................................ 1,890 ------- Automobiles (1.2%): 135 Ford Motor Co.............................................. 4,337 ------- Automotive Parts (0.7%): 101 Arvin Industries, Inc...................................... 2,437 ------- Banking (3.4%): 120 Great Western Financial Corp............................... 3,795 40 J.P. Morgan & Co., Inc. ................................... 4,120 40 NationsBank Corp. ......................................... 4,320 ------- 12,235 ------- Chemicals--Specialty (0.9%): 160 Engelhard Corp............................................. 3,180 ------- Computers & Peripherals (0.4%): 10 International Business Machines Corp....................... 1,572 ------- Construction (0.3%): 76 Ryland Group, Inc.......................................... 988 ------- Containers (0.7%): 100 Rubbermaid, Inc............................................ 2,312 -------
SECURITY MARKET SHARES DESCRIPTION VALUE ------ ------------------------------------------------------------- ------- COMMON STOCKS, CONTINUED: Cosmetics & Related (0.5%): 45 Tambrands, Inc............................................... $ 1,845 ------- Electronic & Electrical (2.0%): 103 AMP, Inc. ................................................... 5,297 32 Avnet, Inc. ................................................. 1,980 ------- 7,277 ------- Financial Services (1.3%): 45 American Express Co.......................................... 2,807 80 Dun & Bradstreet Corp........................................ 1,920 ------- 4,727 ------- Food Processing & Packaging (2.4%): 131 Grand Metropolitan PLC, ADR.................................. 3,940 120 Sara Lee Corp................................................ 4,740 ------- 8,680 ------- Forest Products--Lumber, Paper (1.2%): 90 Weyerhauser Co. ............................................. 4,095 ------- Gold & Silver Mining (0.5%): 125 Homestake Mining Co.......................................... 1,766 ------- Health Care (1.8%): 58 Aetna, Inc................................................... 4,566 35 United Healthcare Corp....................................... 1,706 ------- 6,272 ------- Industrial Services (1.0%): 100 Measurex Corp. .............................................. 3,462 ------- Insurance--Broker (0.8%): 25 Marsh & McLennan Cos., Inc. ................................. 2,694 ------- Insurance--Property, Casualty, Health & Other (1.3%): 75 St. Paul Cos., Inc........................................... 4,687 ------- Manufacturing (0.4%): 31 Kennametal, Inc.............................................. 1,228 ------- Medical Supplies (1.4%): 110 Baxter International, Inc.................................... 5,074 ------- Newspapers (2.1%): 90 Dow Jones & Co., Inc......................................... 3,566 50 Gannett Co., Inc............................................. 3,831 ------- 7,397 -------
Continued -50- AMSOUTH MUTUAL FUNDS BALANCED FUND SCHEDULE OF PORTFOLIO INVESTMENTS, CONTINUED January 31, 1997 (Amounts in Thousands) (Unaudited)
SECURITY MARKET SHARES DESCRIPTION VALUE ------ -------------------------------------------------------------- ------- COMMON STOCKS, CONTINUED: Oil & Gas Exploration, Production, & Services (4.9%): 80 Burlington Resources, Inc..................................... $ 3,980 195 Sun Co., Inc.................................................. 5,143 40 Texaco, Inc................................................... 4,235 150 USX--Marathon Group........................................... 3,994 ------- 17,352 ------- Oilfield Equipment & Services (1.4%): 100 Dresser Industries, Inc....................................... 3,388 90 McDermott International, Inc.................................. 1,642 ------- 5,030 ------- Pharmaceuticals (3.8%): 60 American Home Products Corp................................... 3,802 30 Bristol-Myers Squibb Co. ..................................... 3,810 30 Johnson & Johnson............................................. 1,729 114 Pharmacia & Upjohn, Inc....................................... 4,247 ------- 13,588 ------- Pollution Control Services & Equipment (1.2%): 115 WMX Technologies, Inc......................................... 4,212 ------- Railroad (0.7%): 50 CSX Corp. .................................................... 2,425 ------- Retail (5.8%): 54 Dayton Hudson Corp............................................ 2,032 105 Dillard Department Stores, Inc., Class A...................... 3,137 29 Footstar, Inc.(b)............................................. 651 135 Gap Inc. ..................................................... 3,881 70 May Department Stores Co. .................................... 3,115 100 Melville Corp.(b)............................................. 4,325 150 Wal-Mart Stores, Inc.......................................... 3,563 ------- 20,704 -------
SECURITY MARKET SHARES DESCRIPTION VALUE ------ ------------------------------------------------------------- -------- COMMON STOCKS, CONTINUED: Services (Non-Financial) (0.6%): 48 Cognizant Corp.(b)........................................... $ 1,542 25 Rollins, Inc................................................. 491 -------- 2,033 -------- Transportation Leasing & Trucking (1.1%): 85 Ryder System, Inc............................................ 2,422 63 USFreightways Corp........................................... 1,599 -------- 4,021 -------- Transportation--Marine (0.2%): 30 Kirby Corp.(b)............................................... 578 -------- Utilities--Electric (1.6%): 110 Baltimore Gas & Electric Co.................................. 3,025 115 Southern Co.................................................. 2,516 -------- 5,541 -------- Utilities--Telecommunications (3.8%): 60 AT&T Corp.................................................... 2,362 90 BellSouth Corp............................................... 3,994 80 NYNEX Corp................................................... 4,050 80 Sprint Corp.................................................. 3,260 -------- 13,666 -------- Total Common Stocks................................................. 177,305 -------- INVESTMENT COMPANIES (2.1%): 7,327 AmSouth Prime Obligations Fund............................... 7,327 5 AmSouth U.S. Treasury Fund................................... 5 -------- Total Investment Companies 7,332 -------- Total (Cost--$304,423)(a) $353,334 ========
- -------- Percentages indicated are based on net assets of $355,980. (a) Represents cost for federal income tax purposes and differs from value by net unrealized appreciation of securities as follows: Unrealized appreciation........ $53,264 Unrealized depreciation........ (4,353) ------- Net unrealized appreciation.... $48,911 =======
(b) Represents non-income producing security. ADR--American Depository Receipt PLC--Public Liability Co. See notes to financial statements. -51- AMSOUTH MUTUAL FUNDS NOTES TO FINANCIAL STATEMENTS January 31, 1997 (Unaudited) 1. ORGANIZATION: AmSouth Mutual Funds (the "Trust") was organized on August 5, 1988, and is registered under the Investment Company Act of 1940, as amended, ("the 1940 Act") as a diversified, open-end investment company established as a Massachusetts business trust. Between the date of organization and the dates of commencement of operations, the Trust had no operations other than incurring organizational expenses and the sale of initial units of beneficial interest ("shares"). The Trust is authorized to issue an unlimited number of shares without par value. The Trust currently offers shares of the AmSouth Prime Obligations Fund, the AmSouth U.S. Treasury Fund, the AmSouth Tax-Exempt Fund, the AmSouth Bond Fund, the AmSouth Limited Maturity Fund, the AmSouth Government Income Fund, the AmSouth Florida Tax-Free Fund, the AmSouth Equity Fund, the AmSouth Regional Equity Fund, and the AmSouth Balanced Fund (collectively, "the Funds" and individually "a Fund"). The AmSouth Alabama Tax-Free Fund and the AmSouth Municipal Bond Fund have not yet commenced operations. Sales of shares of the Funds may be made to customers of AmSouth Bank of Alabama, ("AmSouth") and its affiliates, to all accounts of correspondent banks of AmSouth and to the general public. The Prime Obligations Fund, the U.S. Treasury Fund and the Tax Exempt Fund (the "money market funds") each offer two classes of shares: Classic Shares and Premier Shares. Effective April 1, 1996, the existing shares of the money market funds, which were previously unclassified, were designated Premier Shares, and the money market funds commenced offering Classic Shares. Shares of the Bond Fund, Limited Maturity Fund, the Government Income Fund, the Florida Tax-Free Fund, the Equity Fund, the Regional Equity Fund and the Balanced Fund (the "variable net asset value funds") are not classified. The Prime Obligations Fund and U.S. Treasury Fund seek current income with liquidity and stability of principal. The Tax Exempt Fund seeks to produce as high a level of current interest income exempt from federal income taxes as is consistent with the preservation of capital and relative stability of principal. The Bond Fund and Limited Maturity Fund seek current income, consistent with the preservation of capital. The Government Income Fund seeks to provide a high level of current income consistent with prudent investment risk. The Florida Tax-Free Fund seeks to produce as high a level of current interest income exempt from federal income taxes and Florida intangibles taxes as is consistent with the preservation of capital. The Equity Fund and the Regional Equity Fund seek growth of capital. The Balanced Fund seeks to obtain long-term capital growth and current income. 2. SIGNIFICANT ACCOUNTING POLICIES: The following is a summary of significant accounting policies followed by the Trust in the preparation of its financial statements. The policies are in conformity with generally accepted accounting principles. The preparation of financial statements requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements and the reported amounts of income and expenses for the period. Actual results could differ from those estimates. Continued -52- AMSOUTH MUTUAL FUNDS NOTES TO FINANCIAL STATEMENTS, CONTINUED January 31, 1997 (Unaudited) SECURITIES VALUATION: Investments of the money market funds are valued at either amortized cost, which approximates market value, or at original cost which, combined with accrued interest, approximates market value. Under the amortized cost method, discount or premium is amortized on a constant basis to the maturity of the security. In addition, the money market funds may not (a) purchase any instrument with a remaining maturity greater than thirteen months unless such instrument is subject to a demand feature, or (b) maintain a dollar-weighted average maturity which exceeds 90 days. Investments in common stocks, corporate bonds, municipal bonds, commercial paper and U.S. Government securities of the variable net asset value funds are valued at their market values determined on the basis of the mean between the latest available bid and asked prices in the principal market (closing sales prices if the principal market is an exchange) in which such securities are normally traded. Investments in investment companies are valued at their net asset values as reported by such companies. The differences between cost and market values of such investments are reflected as unrealized appreciation or depreciation. SECURITIES TRANSACTIONS AND RELATED INCOME: Securities transactions are accounted for on the date the security is purchased or sold (trade date). Interest income is recognized on the accrual basis and includes, where applicable, the pro rata amortization of premium or discount. Dividend income is recorded on the ex-dividend date. Realized gains or losses from sales of securities are determined by comparing the identified cost of the security lot sold with the net sales proceeds. REPURCHASE AGREEMENTS: The Funds may acquire repurchase agreements from member banks of the Federal Deposit Insurance Corporation and from registered broker/dealers which AmSouth deems creditworthy under guidelines approved by the Board of Trustees, subject to the seller's agreement to repurchase such securities at a mutually agreed-upon date and price. The repurchase price generally equals the price paid by the Funds plus interest negotiated on the basis of current short-term rates, which may be more or less than the rate on the underlying portfolio securities. The seller, under a repurchase agreement, is required to maintain the value of collateral held pursuant to the agreement at not less than the repurchase price (including accrued interest). Securities subject to repurchase agreements are held by the Funds' custodian or another qualified custodian or in the Federal Reserve/Treasury book-entry system. Repurchase agreements are considered to be loans by a Fund under the 1940 Act. DIVIDENDS TO SHAREHOLDERS: Dividends from net investment income are declared daily and paid monthly for the money market funds. Dividends from net investment income are declared and paid monthly for the variable net asset value funds. Distributable net realized gains, if any, are declared and distributed annually. Continued -53- AMSOUTH MUTUAL FUNDS NOTES TO FINANCIAL STATEMENTS, CONTINUED January 31, 1997 (Unaudited) Dividends from net investment income and from net realized capital gains are determined in accordance with income tax regulations which may differ from generally accepted accounting principles. These differences are primarily due to differing treatments for mortgage-backed securities, expiring capital loss carryforwards and deferrals of certain losses. Permanent book and tax basis differences are reflected in the components of net assets. FEDERAL INCOME TAXES: It is the policy of each Fund to continue to qualify as a regulated investment company by complying with the provisions available to certain investment companies, as defined in applicable sections of the Internal Revenue Code, and to make distributions of net investment income and net realized capital gains sufficient to relieve it from all, or substantially all, federal income taxes. OTHER: Expenses that are directly related to one of the Funds are charged directly to that Fund. Other operating expenses for the Trust are prorated to the Funds on the basis of relative net assets. 3. PURCHASES AND SALES OF SECURITIES: Purchases and sales of securities (excluding short-term securities) for the six month period ended January 31, 1997:
PURCHASES SALES ----------- ----------- Bond Fund............................................. $14,562,758 $16,453,992 Limited Maturity Fund................................. 18,072,074 22,897,150 Government Income Fund................................ 397,041 2,486,012 Florida Tax-Free Fund................................. 6,466,070 1,105,000 Equity Fund........................................... 55,280,739 45,114,368 Regional Equity Fund.................................. 15,503,168 7,292,410 Balanced Fund......................................... 46,038,632 50,662,473
Continued -54- AMSOUTH MUTUAL FUNDS NOTES TO FINANCIAL STATEMENTS, CONTINUED January 31, 1997 (Unaudited) 4. CAPITAL SHARE TRANSACTIONS: Transactions in capital shares for the Funds which offer multiple classes of shares for the six month period ended January 31, 1997 and the year ended July, 31, 1996 were as follows:
PRIME TAX EXEMPT OBLIGATIONS FUND TREASURY FUND FUND ---------------------- ---------------------- ------------------ AMOUNT SHARES AMOUNT SHARES AMOUNT SHARES ---------- ---------- ---------- ---------- -------- -------- For the six month period ended January 31, 1997: Classic Shares: Shares issued......... $ 298,430 298,430 $ 10,775 10,775 $ 11,620 11,620 Dividends reinvested.. 2,810 2,810 274 274 260 260 Shares redeemed....... (317,330) (317,330) (11,753) (11,753) (12,606) (12,606) ---------- ---------- ---------- ---------- -------- -------- Net decrease.......... $ (16,090) (16,090) $ (704) (704) $ (726) (726) ========== ========== ========== ========== ======== ======== Premier Shares: Shares issued......... $ 519,650 519,650 $ 459,408 459,408 $ 83,634 83,634 Dividends reinvested.. 838 838 232 232 15 15 Shares redeemed....... (548,163) (548,163) (514,873) (514,873) (60,286) (60,286) ---------- ---------- ---------- ---------- -------- -------- Net increase (decrease)........... $ (27,675) (27,675) $ (55,233) (55,233) $ 23,363 23,363 ========== ========== ========== ========== ======== ======== For the period April 1, 1996 through July 31, 1996: Classic Shares (a): Shares issued......... $ 165,419 165,419 $ 9,207 9,207 $ 9,803 9,803 Dividends reinvested.. 1,963 1,963 222 222 143 143 Shares redeemed....... (191,139) (191,139) (13,986) (13,986) (9,019) (9,019) ---------- ---------- ---------- ---------- -------- -------- Net increase (decrease)........... $ (23,757) (23,757) $ (4,557) (4,557) $ 927 927 ========== ========== ========== ========== ======== ======== For the year ended July 31, 1996: Premier Shares (a): Shares issued......... $1,388,943 1,388,943 $1,088,791 1,088,791 $129,166 129,166 Dividends reinvested.. 5,460 5,460 1,751 1,751 388 388 Shares redeemed....... (1,384,702) (1,384,702) (1,028,499) (1,028,499) (127,394) (127,394) ---------- ---------- ---------- ---------- -------- -------- Net increase.......... $ 9,701 9,701 $ 62,043 62,043 $ 2,160 2,160 ========== ========== ========== ========== ======== ========
- -------- (a) Effective April 1, 1996, the Funds' existing shares, which were previously unclassified, were designated Premier Shares, and the Funds commenced offering Classic Shares. Continued -55- AMSOUTH MUTUAL FUNDS NOTES TO FINANCIAL STATEMENTS, CONTINUED January 31, 1997 (Unaudited) 5. RELATED PARTY TRANSACTIONS: Investment advisory services are provided to each of the Funds by AmSouth. Under the terms of the investment advisory agreement, AmSouth is entitled to receive fees based on a percentage of the average net assets of each of the Funds. BISYS Fund Services Limited Partnership d/b/a BISYS Fund Services ("BISYS"), an Ohio Limited Partnership, and BISYS Fund Services Ohio, Inc. ("BISYS Ohio") are subsidiaries of The BISYS Group, Inc. ASO Services Company, a wholly-owned subsidiary of The BISYS Group, Inc., serves the Funds as administrator. Prior to April 1, 1996, BISYS served the Funds as administrator. Under the terms of the administration agreement, ASO Services Company's fees are computed daily as 0.20% of the average net assets of each of the Funds. AmSouth and BISYS, with whom certain officers and trustees of the Trust are affiliated, serve as the Funds sub-administrator. Such officers and trustees are paid no fees directly by the Funds for serving as officers and trustees of the Trust. Pursuant to its current agreement with the Administrator, AmSouth has assumed certain of the Adminstrator's duties, for which AmSouth receives a fee, paid by the Administrator, calculated at an annual rate of up to ten one-hundredths of one percent (.10%) of each Fund's average net assets. Pursuant to its agreement with the Administrator, BISYS, as sub-administrator, is entitled to compensation as mutually agreed from time to time by it and the Administrator. BISYS also serves as the Funds' distributor and is entitled to receive commissions on sales of shares of the variable net asset value funds. For the six month period ended January 31, 1997, BISYS received approximately $380,000 from commissions earned on sales of shares of the Funds' variable net asset value funds of which the entire amount was reallowed to AmSouth, an investment dealer of the Funds' shares and other dealers of the Funds' shares. BISYS receives no fees from the Funds for providing distribution services to money market funds. BISYS Ohio serves the Funds as Transfer Agent and Mutual Fund Accountant. Under the terms of the Transfer Agent and Accounting Agreement, the Company's fees are based on the number of shareholders and as a percentage of average net assets, respectively. Fees may be voluntarily reduced to assist the Funds in maintaining competitive expense ratios. Information regarding these transactions is as follows for the period ended January 31, 1997 (amounts in thousands): Continued -56- AMSOUTH MUTUAL FUNDS NOTES TO FINANCIAL STATEMENTS, CONTINUED January 31, 1997 (Unaudited)
INVESTMENT ADVISORY FEES -------------------------------- ANNUAL FEE AS A PERCENTAGE OF ADMINISTRATION SHAREHOLDER AVERAGE DAILY FEES VOLUNTARILY FEES VOLUNTARILY SERVICING FEES NET ASSETS REDUCED REDUCED VOLUNTARILY REDUCED --------------- ---------------- ---------------- ------------------- Prime Obligations Fund.. 0.40% $ -- $ -- $89 U.S. Treasury Fund...... 0.40% -- -- 9 Tax-Exempt Fund......... 0.40% 74 -- 13 Bond Fund............... 0.65% 102 54 -- Limited Maturity Fund... 0.65% 33 18 -- Government Income Fund.. 0.65% 27 8 -- Florida Tax-Free Fund... 0.65% 91 26 -- Equity Fund............. 0.80% -- 162 -- Regional Equity Fund.... 0.80% -- 43 -- Balanced Fund........... 0.80% -- 143 --
-57- AMSOUTH MUTUAL FUNDS FINANCIAL HIGHLIGHTS
PRIME OBLIGATIONS FUND ----------------------------------------------------------------------------------------------- SIX MONTHS ENDED JANUARY 31, 1997 YEAR ENDED JULY 31, -------------------------- ----------------------------------------------------------------- 1996 1995 1994 1993 1992 -------------------------- -------- -------- -------- -------- CLASSIC (A) PREMIER (A) CLASSIC (A) PREMIER (A) ----------- ----------- ----------- ----------- (UNAUDITED) (UNAUDITED) NET ASSET VALUE, BEGINNING OF PERIOD.... $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000 -------- -------- -------- -------- -------- -------- -------- -------- INVESTMENT ACTIVITIES Net investment income.. 0.024 0.024 0.050 0.016 0.050 0.029 0.027 0.042 -------- -------- -------- -------- -------- -------- -------- -------- DISTRIBUTIONS Net investment income.. (0.024) (0.024) (0.050) (0.016) (0.050) (0.029) (0.027) (0.042) -------- -------- -------- -------- -------- -------- -------- -------- NET ASSET VALUE, END OF PERIOD.......... $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000 ======== ======== ======== ======== ======== ======== ======== ======== Total Return............ 2.41%(d) 2.46%(d) 5.07%(e) 5.10% 5.14% 2.94% 2.76% 4.28% RATIOS/SUPPLEMENTAL DATA: Net Assets at end of period (000).......... $108,985 $450,867 $125,075 $478,542 $617,673 $577,331 $456,428 $457,511 Ratio of expenses to average net assets.... 0.78%(b) 0.68%(b) 0.81%(b) 0.71% 0.69% 0.70% 0.71% 0.71% Ratio of net investment income to average net assets................ 4.73%(b) 4.83%(b) 4.61%(b) 5.00% 5.04% 2.92% 2.73% 4.08% Ratio of expenses to average net assets*... 0.93%(b) (c) 0.96%(b) (c) (c) (c) (c) (c) Ratio of net investment income to average net assets*............... 4.58%(b) (c) 4.46%(b) (c) (c) (c) (c) (c)
- -------- * During the period, certain fees were voluntarily reduced. If such voluntary fee reductions had not occurred, the ratios would have been as indicated. (a) Effective April 1, 1996, the Fund's existing shares, which were previously unclassified, were designated as Premier Shares, and the Fund commenced offering Classic Shares. (b) Annualized. (c) There were no waivers during the period. (d) Not annualized. (e) Represents total return for the Premier Shares for the period from August 1, 1995 to March 31, 1996 plus the total return for the Classic Shares for the period from April 1, 1996 to July 31, 1996. See notes to financial statements. -58- AMSOUTH MUTUAL FUNDS FINANCIAL HIGHLIGHTS
U.S. TREASURY FUND --------------------------------------------------------------------------------------------- SIX MONTHS ENDED YEAR ENDED JULY 31, JANUARY 31, ---------------------------------------------------------------- 1997 1996 1995 1994 1993 1992 ------------------------- ------------------------- -------- -------- -------- -------- CLASSIC (A) PREMIER (A) CLASSIC (A) PREMIER (A) ----------- ----------- ----------- ----------- (UNAUDITED) (UNAUDITED) NET ASSET VALUE, BEGINNING OF PERIOD.... $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000 ------- -------- ------- -------- -------- -------- -------- -------- INVESTMENT ACTIVITIES Net investment income................ 0.023 0.023 0.048 0.015 0.048 0.028 0.027 0.041 ------- -------- ------- -------- -------- -------- -------- -------- DISTRIBUTIONS Net investment income................ (0.023) (0.023) (0.048) (0.015) (0.048) (0.028) (0.027) (0.041) ------- -------- ------- -------- -------- -------- -------- -------- NET ASSET VALUE, END OF PERIOD.......... $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000 ======= ======== ======= ======== ======== ======== ======== ======== Total Return............ 2.28%(d) 2.33%(d) 4.90%(e) 4.93% 4.90% 2.80% 2.69% 4.15% RATIOS/SUPPLEMENTAL DATA: Net Assets at end of period (000).......... $11,559 $312,929 $12,263 $368,162 $322,939 $300,603 $404,473 $339,666 Ratio of expenses to average net assets.... 0.80%(b) 0.70%(b) 0.82%(b) 0.71% 0.70% 0.71% 0.72% 0.73% Ratio of net investment income to average net assets................ 4.48%(b) 4.58%(b) 4.44%(b) 4.82% 4.81% 2.77% 2.66% 4.08% Ratio of expenses to average net assets*... 0.95%(b) (c) 0.97%(b) (c) (c) (c) (c) (c) Ratio of net investment income to average net assets*............... 4.33%(b) (c) 4.29%(b) (c) (c) (c) (c) (c)
- -------- * During the period, certain fees were voluntarily reduced. If such voluntary fee reductions had not occurred, the ratios would have been as indicated. (a) Effective April 1, 1996, the Fund's existing shares, which were previously unclassified, were designated as Premier Shares, and the Fund commenced offering Classic Shares. (b) Annualized. (c) There were no waivers during the period. (d) Not annualized. (e) Represents total return for the Premier shares for the period from August 1, 1995 to March 31, 1996 plus the total return for the Classic Shares for the period from April 1, 1996 to July 31, 1996. See notes to financial statements. -59- AMSOUTH MUTUAL FUNDS FINANCIAL HIGHLIGHTS
TAX EXEMPT FUND ---------------------------------------------------------------------------------------- SIX MONTHS ENDED YEAR ENDED JULY 31, JANUARY 31, ------------------------------------------------------------ 1997 1996 1995 1994 1993 1992 ------------------------- ------------------------- ------- ------- ------- ------- CLASSIC (A) PREMIER (A) CLASSIC (A) PREMIER (A) ----------- ----------- ----------- ----------- (UNAUDITED) (UNAUDITED) NET ASSET VALUE, BEGINNING OF PERIOD.... $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000 ------- ------- ------- ------- ------- ------- ------- ------- INVESTMENT ACTIVITIES Net investment income................ 0.149 0.015 0.031 0.010 0.032 0.019 0.021 0.030 ------- ------- ------- ------- ------- ------- ------- ------- DISTRIBUTIONS Net investment income................ (0.149) (0.015) (0.031) (0.010) (0.032) (0.019) (0.021) (0.030) ------- ------- ------- ------- ------- ------- ------- ------- NET ASSET VALUE, END OF PERIOD.......... $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000 ======= ======= ======= ======= ======= ======= ======= ======= Total Return............ 1.50%(c) 1.55%(c) 3.12%(e) 3.15% 3.22% 1.95% 2.16% 3.12% RATIOS/SUPPLEMENTAL DATA: Net Assets at end of period (000).......... $16,390 $66,974 $17,116 $43,611 $57,640 $60,923 $48,151 $38,392 Ratio of expenses to average net assets.... 0.61%(b) 0.51%(b) 0.68%(b) 0.54% 0.54% 0.57% 0.49% 0.65% Ratio of net investment income to average net assets................ 2.96%(b) 3.07%(b) 2.82%(b) 3.11% 3.15% 1.93% 2.12% 2.98% Ratio of expenses to average net assets*... 0.96%(b) 0.71%(b) 1.03%(b) 0.74% 0.74% 0.77% 0.78% 0.77% Ratio of net investment income to average net assets*............... 2.61%(b) 2.87%(b) 2.47%(b) 2.91% 2.95% 1.73% 1.83% 2.86%
- -------- * During the period, certain fees were voluntarily reduced. If such voluntary fee reductions had not occurred, the ratios would have been as indicated. (a) Effective April 1, 1996, the Fund's existing shares, which were previously unclassified, were designated as Premier Shares, and the Fund commenced offering Classic Shares. (b) Annualized. (c) Not annualized. (e) Represents total return for the Premier shares for the period from August 1, 1995 to March 31, 1996 plus the total return for the Classic Shares for the period from April 1, 1996 to July 31, 1996. See notes to financial statements. -60- AMSOUTH MUTUAL FUNDS FINANCIAL HIGHLIGHTS
BOND FUND ----------------------------------------------------------- SIX MONTHS ENDED YEAR ENDED JULY 31, JANUARY 31, -------------------------------------------- 1997 1996 1995 1994 1993 1992 ----------- -------- ------- ------- ------- ------- (UNAUDITED) NET ASSET VALUE, BEGINNING OF PERIOD.............. $ 10.54 $ 10.83 $ 10.59 $ 11.29 $ 11.29 $ 10.42 -------- -------- ------- ------- ------- ------- INVESTMENT ACTIVITIES Net investment income.. 0.32 0.65 0.69 0.69 0.71 0.74 Net realized and unrealized gains (losses) from investments........... 0.15 (0.18) 0.28 (0.66) 0.33 0.91 -------- -------- ------- ------- ------- ------- Total from Investment Activities........... 0.47 0.47 0.97 0.03 1.04 1.65 -------- -------- ------- ------- ------- ------- DISTRIBUTIONS Net investment income.. (0.36) (0.65) (0.69) (0.70) (0.71) (0.73) Net realized gains..... 0.00 (0.11) (0.04) (0.03) (0.33) (0.05) -------- -------- ------- ------- ------- ------- Total Distributions... (0.36) (0.76) (0.73) (0.73) (1.04) (0.78) -------- -------- ------- ------- ------- ------- NET ASSET VALUE, END OF PERIOD................. $ 10.65 $ 10.54 $ 10.83 $ 10.59 $ 11.29 $ 11.29 ======== ======== ======= ======= ======= ======= Total Return (excludes sales charge).......... 4.53%(b) 4.40% 9.70% 0.23% 9.80% 16.41% RATIOS/SUPPLEMENTAL DATA: Net Assets at end of period (000).......... $132,112 $132,737 $94,671 $79,472 $65,777 $60,156 Ratio of expenses to average net assets............ 0.75%(a) 0.75% 0.75% 0.78% 0.78% 0.82% Ratio of net investment income to average net assets. 6.03%(a) 6.12% 6.63% 6.31% 6.37% 6.94% Ratio of expenses to average net assets*........... 0.98%(a) 0.98% 0.98% 1.01% 1.01% 1.01% Ratio of net investment income to average net assets*............... 5.80%(a) 5.89% 6.40% 6.08% 6.14% 6.75% Portfolio turnover...... 11.20% 9.60% 17.70% 30.90% 14.98% 240.64%
- -------- * During the period, certain fees were voluntarily reduced. If such voluntary fee reductions had not occurred, the ratios would have been as indicated. (a) Annualized. (b) Not annualized. See notes to financial statements. -61- AMSOUTH MUTUAL FUNDS FINANCIAL HIGHLIGHTS
LIMITED MATURITY FUND --------------------------------------------------------- SIX MONTHS ENDED YEAR ENDED JULY 31, JANUARY 31, ------------------------------------------- 1997 1996 1995 1994 1993 1992 ----------- ------- ------- ------- ------- ------- (UNAUDITED) NET ASSET VALUE, BEGINNING OF PERIOD.... $ 10.31 $ 10.41 $ 10.23 $ 10.81 $ 10.81 $ 10.44 ------- ------- ------- ------- ------- ------- INVESTMENT ACTIVITIES Net investment income.. 0.30 0.58 0.58 0.54 0.60 0.70 Net realized and unrealized gains (losses) from investments........... 0.04 (0.11) 0.17 (0.45) 0.09 0.45 ------- ------- ------- ------- ------- ------- Total from Investment Activities........... 0.34 0.47 0.75 0.09 0.69 1.15 ------- ------- ------- ------- ------- ------- DISTRIBUTIONS Net investment income.. (0.33) (0.57) (0.57) (0.54) (0.61) (0.69) Net realized gains..... -- (0.01) -- -- (0.08) (0.09) In excess of net realized gains........ -- -- -- (0.13) -- -- ------- ------- ------- ------- ------- ------- Total Distributions... (0.33) (0.58) (0.57) (0.67) (0.69) (0.78) ------- ------- ------- ------- ------- ------- NET ASSET VALUE, END OF PERIOD................. $ 10.32 $ 10.31 $ 10.41 $ 10.23 $ 10.81 $ 10.81 ======= ======= ======= ======= ======= ======= Total Return (excludes sales charge).......... 3.29%(b) 4.74% 7.65% 0.77% 6.72% 11.48% RATIOS/SUPPLEMENTAL DATA: Net Assets at end of period (000).......... $41,087 $46,005 $59,798 $51,660 $53,933 $38,206 Ratio of expenses to average net assets............ 0.77%(a) 0.76% 0.80% 0.79% 0.69% 0.68% Ratio of net investment income to average net assets................ 5.56%(a) 5.48% 5.69% 5.05% 5.67% 6.78% Ratio of expenses to average net assets*........... 1.00%(a) 0.99% 1.03% 1.02% 1.03% 1.03% Ratio of net investment income to average net assets*............... 5.33%(a) 5.25% 5.46% 4.82% 5.33% 6.43% Portfolio turnover...... 42.36% 29.56% 38.11% 48.06% 141.27% 35.64%
- -------- * During the period, certain fees were voluntarily reduced. If such voluntary fee reductions had not occurred, the ratios would have been as indicated. (a) Annualized. (b) Not annualized. See notes to financial statements. -62- AMSOUTH MUTUAL FUNDS FINANCIAL HIGHLIGHTS
GOVERNMENT INCOME FUND ------------------------------------------------- SIX MONTHS YEAR ENDED ENDED JULY 31, OCTOBER 1, 1993 JANUARY 31, ---------------- TO JULY 31, 1997 1996 1995 1994(A) ----------- ------- ------- --------------- (UNAUDITED) NET ASSET VALUE, BEGINNING OF PERIOD.................. $ 9.40 $ 9.54 $ 9.48 $ 10.00 ----------- ------- ------- ------- INVESTMENT ACTIVITIES Net investment income...... 0.26 0.66 0.68 0.54 Net realized and unrealized gains (losses) from investments............... 0.20 (0.20) 0.08 (0.57) ----------- ------- ------- ------- Total from Investment Ac- tivities................. 0.46 0.46 0.76 (0.03) ----------- ------- ------- ------- DISTRIBUTIONS Net investment income...... (0.27) (0.59) (0.70) (0.33) Tax return of capital...... -- (0.01) -- (0.16) ----------- ------- ------- ------- Total Distributions....... (0.27) (0.60) (0.70) (0.49) ----------- ------- ------- ------- NET ASSET VALUE, END OF PE- RIOD....................... $ 9.59 $ 9.40 $ 9.54 $ 9.48 =========== ======= ======= ======= Total Return (excludes sales charge).................... 4.95%(c) 4.91% 8.43% (0.26%)(c) RATIOS/SUPPLEMENTAL DATA: Net Assets at end of period (000)..................... $13,762 $15,752 $16,679 $15,465 Ratio of expenses to average net assets........ 0.72%(b) 0.65% 0.58% 0.37%(b) Ratio of net investment income to average net assets.................... 5.49%(b) 6.81% 7.18% 6.56%(b) Ratio of expenses to average net assets*....... 1.17%(b) 1.10% 1.19% 1.22%(b) Ratio of net investment income to average net assets*................... 5.04%(b) 6.36% 6.57% 5.71%(b) Portfolio turnover.......... 2.65% 78.31% 27.32% 122.94%
- -------- * During the period, certain fees were voluntarily reduced. If such voluntary fee reductions had not occurred, the ratios would have been as indicated. (a) Period from commencement of operations. (b) Annualized. (c) Not annualized. See notes to financial statements. -63- AMSOUTH MUTUAL FUNDS FINANCIAL HIGHLIGHTS
FLORIDA TAX-FREE FUND --------------------------------------------- SIX MONTHS ENDED YEAR ENDED SEPTEMBER 30, 1994 JANUARY 31, JULY 31, TO JULY 31, 1997 1996 1995(A) ----------- ---------- ------------------ (UNAUDITED) NET ASSET VALUE, BEGINNING OF PE- RIOD............................ $ 10.30 $ 10.32 $ 10.00 ----------- ------- ------- INVESTMENT ACTIVITIES Net investment income........... 0.22 0.45 0.34 Net realized and unrealized gains (losses) from invest- ments.......................... 0.05 (0.01) 0.30 ----------- ------- ------- Total from Investment Activi- ties.......................... 0.27 0.44 0.64 ----------- ------- ------- DISTRIBUTIONS Net investment income........... (0.25) (0.45) (0.32) Net realized gains.............. (0.01) (0.01) -- ----------- ------- ------- Total Distributions............ (0.26) (0.46) (0.32) ----------- ------- ------- NET ASSET VALUE, END OF PERIOD... $ 10.31 $ 10.30 $ 10.32 =========== ======= ======= Total Return (excludes sales charge)......................... 2.71%(c) 4.24% 6.53%(c) RATIOS/SUPPLEMENTAL DATA: Net Assets at end of period (000).......................... $52,825 $48,869 $48,333 Ratio of expenses to average net assets......................... 0.54%(b) 0.59% 0.70%(b) Ratio of net investment income to average net assets.......... 4.35%(b) 4.33% 4.16%(b) Ratio of expenses to average net assets*........................ 0.99%(b) 1.04% 1.01%(b) Ratio of net investment income to average net assets*......... 3.90%(b) 3.88% 3.86%(b) Portfolio turnover............... 2.30% 12.21% 2.33%
- -------- * During the period, certain fees were voluntarily reduced. If such voluntary fee reductions had not occurred, the ratios would have been as indicated. (a) Period from commencement of operations. (b) Annualized. (c) Not annualized. See notes to financial statements. -64- AMSOUTH MUTUAL FUNDS FINANCIAL HIGHLIGHTS
EQUITY FUND ---------------------------------------------------------------- SIX MONTHS ENDED YEAR ENDED JULY 31, JANUARY 31, ------------------------------------------------ 1997 1996 1995 1994 1993 1992 ----------- -------- -------- -------- -------- -------- (UNAUDITED) NET ASSET VALUE, BEGINNING OF PERIOD.... $ 17.62 $ 16.75 $ 14.82 $ 14.38 $ 13.40 $ 12.57 ----------- -------- -------- -------- -------- -------- INVESTMENT ACTIVITIES Net investment income.. 0.16 0.33 0.33 0.28 0.28 0.32 Net realized and unrealized gains from investments........... 2.30 1.48 2.39 0.83 1.48 1.20 ----------- -------- -------- -------- -------- -------- Total from Investment Activities........... 2.46 1.81 2.72 1.11 1.76 1.52 ----------- -------- -------- -------- -------- -------- DISTRIBUTIONS Net investment income.. (0.17) (0.33) (0.32) (0.28) (0.29) (0.33) Net realized gains..... (1.04) (0.61) (0.47) (0.39) (0.49) (0.36) ----------- -------- -------- -------- -------- -------- Total Distributions... (1.21) (0.94) (0.79) (0.67) (0.78) (0.69) ----------- -------- -------- -------- -------- -------- NET ASSET VALUE, END OF PERIOD................. $ 18.87 $ 17.62 $ 16.75 $ 14.82 $ 14.38 $ 13.40 =========== ======== ======== ======== ======== ======== Total Return (excludes sales charge).......... 14.32%(c) 11.09% 19.27% 7.90% 13.81% 12.94% RATIOS/SUPPLEMENTAL DATA: Net Assets at end of period (000)................. $419,009 $374,622 $275,757 $205,611 $153,074 $107,934 Ratio of expenses to average net assets.... 1.01%(b) 1.02% 1.03% 0.94% 0.95% 1.01% Ratio of net investment income to average net assets. 1.71%(b) 1.86% 2.17% 1.93% 2.08% 2.50% Ratio of expenses to average net assets*........... 1.09%(b) 1.11% 1.11% 1.11% 1.13% 1.15% Ratio of net investment income to average net assets*............... 1.63%(b) 1.77% 2.09% 1.76% 1.90% 2.36% Portfolio turnover...... 11.94% 19.11% 19.46% 11.37% 15.12% 113.12% Average commission rate (a).................... $0.0668 $ 0.0700 -- -- -- --
- -------- * During the period, certain fees were voluntarily reduced. If such voluntary fee reductions had not occurred, the ratios would have been as indicated. (a) Represents the total dollar amount of commissions paid on portfolio transactions divided by total number of shares purchased and sold by the Fund for which commissions were charged. (b) Annualized. (c) Not annualized. See notes to financial statements. -65- AMSOUTH MUTUAL FUNDS FINANCIAL HIGHLIGHTS
REGIONAL EQUITY FUND ----------------------------------------------------------- SIX MONTHS ENDED YEAR ENDED JULY 31, JANUARY 31, ------------------------------------------- 1997 1996 1995 1994 1993 1992 ----------- ------- ------- ------- ------- ------- (UNAUDITED) NET ASSET VALUE, BEGINNING OF PERIOD.... $ 20.95 $ 18.94 $ 16.68 $ 16.74 $ 14.86 $ 13.44 ----------- ------- ------- ------- ------- ------- INVESTMENT ACTIVITIES Net investment income.. 0.15 0.26 0.23 0.23 0.19 0.23 Net realized and unrealized gains from investments........... 3.79 2.20 2.26 0.58 2.09 2.34 ----------- ------- ------- ------- ------- ------- Total from Investment Activities........... 3.94 2.46 2.49 0.81 2.28 2.57 ----------- ------- ------- ------- ------- ------- DISTRIBUTIONS Net investment income.. (0.15) (0.26) (0.23) (0.23) (0.20) (0.23) Net realized gains..... (0.49) (0.19) -- (0.41) (0.20) (0.92) In excess of net realized gains........ -- -- -- (0.23) -- -- ----------- ------- ------- ------- ------- ------- Total Distributions... (0.64) (0.45) (0.23) (0.87) (0.40) (1.15) ----------- ------- ------- ------- ------- ------- NET ASSET VALUE, END OF PERIOD................. $ 24.25 $ 20.95 $ 18.94 $ 16.68 $ 16.74 $ 14.86 =========== ======= ======= ======= ======= ======= Total Return (excludes sales charge).......... 18.96%(c) 13.10% 15.10% 4.87% 15.53% 20.66% RATIOS/SUPPLEMENTAL DATA: Net Assets at end of period (000).......... $120,448 $93,584 $68,501 $54,744 $41,347 $15,707 Ratio of expenses to average net assets............ 1.03%(b) 1.05% 1.07% 0.79% 0.80% 0.91% Ratio of net investment income to average net assets................ 1.22%(b) 1.30% 1.35% 1.36% 1.17% 1.61% Ratio of expenses to average net assets*........... 1.11%(b) 1.13% 1.15% 1.24% 1.28% 1.36% Ratio of net investment income to average net assets*............... 1.14%(b) 1.22% 1.27% 0.90% 0.69% 1.16% Portfolio turnover...... 7.45% 8.22% 14.25% 5.83% 10.22% 24.99% Average commission rate paid (a)............... $0.0829 $0.0827 -- -- -- --
- -------- * During the period, certain fees were voluntarily reduced. If such voluntary fee reductions had not occurred, the ratios would have been as indicated. (a) Represents the total dollar amount of commissions paid on portfolio transactions divided by total number of shares purchased and sold by the Fund for which commissions were charged. (b) Annualized. (c) Not annualized. See notes to financial statements. -66- AMSOUTH MUTUAL FUNDS FINANCIAL HIGHLIGHTS
BALANCED FUND -------------------------------------------------------------------- SIX MONTHS DECEMBER 19, ENDED YEAR ENDED JULY 31, 1991 TO JANUARY 31, -------------------------------------- JULY 31, 1997 1996 1995 1994 1993 1992(A) ----------- -------- -------- -------- -------- ------------ (UNAUDITED) NET ASSET VALUE, BEGINNING OF PERIOD.............. $ 13.03 $ 12.76 $ 11.81 $ 11.86 $ 11.12 $ 10.00 ----------- -------- -------- -------- -------- -------- INVESTMENT ACTIVITIES Net investment income.. 0.25 0.47 0.47 0.42 0.44 0.27 Net realized and unrealized gains from investments.......... 0.99 0.58 1.24 0.18 0.80 1.09 ----------- -------- -------- -------- -------- -------- Total from Investment Activities............. 1.24 1.05 1.71 0.60 1.24 1.36 ----------- -------- -------- -------- -------- -------- DISTRIBUTIONS Net investment income.. (0.27) (0.47) (0.46) (0.42) (0.45) (0.24) Net realized gains..... (0.58) (0.31) (0.30) (0.23) (0.05) -- ----------- -------- -------- -------- -------- -------- Total Distributions... (0.85) (0.78) (0.76) (0.65) (0.50) (0.24) ----------- -------- -------- -------- -------- -------- NET ASSET VALUE, END OF PERIOD................. $ 13.42 $ 13.03 $ 12.76 $ 11.81 $ 11.86 $ 11.12 =========== ======== ======== ======== ======== ======== Total Return (excludes sales charge).......... 9.73%(c) 8.37% 15.27% 5.13% 11.47% 13.71%(c) RATIOS/SUPPLEMENTAL DATA: Net Assets at end of period (000)........... $355,980 $338,425 $295,509 $236,306 $179,134 $143,813 Ratio of expenses to average net assets........... 1.02%(b) 0.98% 0.94% 0.84% 0.84% 0.83%(b) Ratio of net investment income to average net assets............... 3.62%(b) 3.61% 3.91% 3.56% 3.90% 4.45%(b) Ratio of expenses to average net assets*.......... 1.10%(b) 1.11% 1.12% 1.11% 1.12% 1.17%(b) Ratio of net investment income to average net assets*.............. 3.54%(b) 3.48% 3.73% 3.28% 3.62% 4.10%(b) Portfolio turnover...... 13.57% 20.47% 16.97% 14.43% 11.09% 23.18% Average commission rate paid (d)............... $0.0760 $0.0773 -- -- -- --
- -------- * During the period, certain fees were voluntarily reduced. If such voluntary fee reductions had not occurred, the ratios would have been as indicated. (a) Period from commencement of operations. (b) Annualized. (c) Not annualized. (d) Represents the total dollar amount of commissions paid on portfolio transactions divided by total number of shares purchased and sold by the Fund for which commissions were charged. See notes to financial statements. -67- INVESTMENT ADVISOR [LOGO OF AMSOUTH APPEARS HERE] AmSouth Bank 1901 Sixth Avenue North Birmingham, AL 35203 DISTRIBUTOR BISYS Fund Services 3435 Stelzer Road Columbus, OH 43219 LEGAL COUNSEL Ropes & Gray One Franklin Square 1301 K Street, N.W. Suite 800 East Washington, DC 20005 TRANSFER AGENT BISYS Fund Services Ohio, Inc. 3435 Stelzer Road Columbus, OH 43219 AUDITORS Coopers & Lybrand L.L.P. 100 East Broad Street Columbus, OH 43215 3/97 ------------ AMSOUTH ------------ MUTUAL FUNDS ------------ SEMI-ANNUAL REPORT January 31, 1997 [LOGO OF AMSOUTH APPEARS HERE] AMSOUTH BANK OF ALABAMA INVESTMENT ADVISOR -----END PRIVACY-ENHANCED MESSAGE-----