N-CSR/A 1 dncsra.txt AMSOUTH MUTUAL FUNDS (N-CSR/A) ------------------------------------- OMB APPROVAL OMB Number: 3235-0570 Expires: October 31, 2006 Estimated average burden hours per response. . . . . . . 19.3 ------------------------------------- UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM N-CSR CERTIFIED SHAREHOLDER REPORT OF REGISTERED MANAGEMENT INVESTMENT COMPANIES Investment Company Act file number 811-05551 ---------------------------------------------- AmSouth Funds -------------------------------------------------------------------------------- (Exact name of registrant as specified in charter) 3435 Stelzer Road, Columbus, OH 43219 -------------------------------------------------------------------------------- (Address of principal executive offices) (Zip code) BISYS Fund Services Ohio, Inc., 3435 Stelzer Road, Columbus, OH 43219 -------------------------------------------------------------------------------- (Name and address of agent for service) Registrant's telephone number, including area code: 614-470-8000 ----------------------------- Date of fiscal year end: 7/31/03 -------------------------------------------------------- Date of reporting period: 7/31/03 ------------------------------------------------------- Form N-CSR is to be used by management investment companies to file reports with the Commission not later than 10 days after the transmission to stockholders of any report that is required to be transmitted to stockholders under Rule 30e-1 under the Investment Company Act of 1940 ("Act") (17 CFR 270.30e-1). The Commission may use the information provided on Form N-CSR in its regulatory, disclosure review, inspection, and policymaking roles. A registrant is required to disclose the information specified by Form N-CSR, and the Commission will make this information public. A registrant is not required to respond to the collection of information contained in Form N-CSR unless the Form displays a currently valid Office of Management and Budget ("OMB") control number. Please direct comments concerning the accuracy of the information collection burden estimate and any suggestions for reducing the burden to Secretary, Securities and Exchange Commission, 450 Fifth Street, NW, Washington, DC 20549-0609. The OMB has reviewed this collection of information under the clearance requirements of 44 U.S.C. (S) 3507. Item 1. Reports to Stockholders. Attached below is a Supplement dated April 30, 2004 to the Annual Report dated July 31, 2003. Also attached is the Annual Report dated July 31, 2003 as amended. AMSOUTH FUNDS RE: AmSouth Enhanced Market Fund Annual Report Graph Dear Shareholder: Enclosed for your information is a corrected version of the performance graph for the AmSouth Enhanced Market Fund which appeared on page 11 of the AmSouth Funds' Annual Report dated July 31, 2003. The performance of the index reflected in the graph for the AmSouth Enhanced Market Fund was incorrect. Originally, the performance of a hypothetical $10,000 investment in the S&P 500 Stock Index was shown in the graph for the AmSouth Enhanced Market Fund as $10,066 and it should have been $10,673. For updated information concerning this and other AmSouth Funds, please see the AmSouth Funds' Semi-Annual Report to Shareholders dated January 31, 2004. Sincerely, /s/ Nadeem Yousaf Nadeem Yousaf SHAREHOLDERS SHOULD RETAIN THIS SUPPLEMENT WITH THE ANNUAL REPORT FOR FUTURE REFERENCE. AMSOUTH FUNDS Supplement dated April 30 , 2004 to Annual Report dated July 31, 2003 This Supplement provides the following amended information and supercedes any information to the contrary in the Annual Report dated July 31, 2003: The graph for the AmSouth Enhanced Market Fund on page 11 is deleted in its entirety and replaced with the following: [GRAPH APPEARS HERE] The chart reflects the performance of the Class A Shares. The performance of the Class B Shares and the Class I Shares will be greater or less than the line shown in the above chart based on the differences in the sales charges and the expenses paid by shareholders investing in Class A Shares, Class B Shares and Class I Shares. Average Annual Total Return As of Inception 1 Since July 31, 2003 Date Year Inception --------------------------------------------------------------- Class A Shares* 9/1/98 2.61% 0.37% --------------------------------------------------------------- Class B Shares** 9/2/98/1/ 2.79% 0.37% --------------------------------------------------------------- Class I Shares 12/11/98/1/ 8.71% 1.69% --------------------------------------------------------------- * Reflects maximum 5.50% sales charge. ** Reflects applicable contingent deferred sales charge (maximum 5.00%).
AmSouth Enhanced Market S&P 500 Fund (Class A Shares)* Stock Index ----------------------- ----------- 9/1/1998 9452 10000 10048 10245 10841 11078 11535 11749 12/31/1998 12130 12426 12624 12945 12195 12542 12746 13044 13222 13549 12901 13229 13624 13963 13226 13528 13233 13460 12840 13091 13588 13920 13884 14202 12/31/1999 14684 15039 14025 14284 13747 14014 15070 15385 14674 14922 14368 14616 14635 14975 14477 14742 15397 15657 14546 14830 14530 14768 13405 13604 12/31/2000 13474 13671 13927 14156 12615 12865 11799 12051 12766 12987 12796 13074 12504 12757 12363 12632 11566 11841 10578 10884 10850 11092 11731 11943 12/31/2001 11779 12048 11677 11872 11423 11643 11848 12081 11061 11348 10961 11265 10174 10462 9383 9646 9409 9709 8328 8654 9062 9415 9591 9970 12/31/2002 9014 9385 8750 9139 8613 9002 8673 9089 9395 9838 9898 10356 10007 10489 7/31/2003 10185 10673
The chart and table above compare a hypothetical $10,000 investment from 9/1/98 to 7/31/03 in the indicated share class versus a similar investment in the Fund's benchmark. The performance information presented above assumes the reinvestment of dividends and capital gains and does not reflect the deduction of taxes that a shareholder would pay on distributions and redemptions. The performance of the AmSouth Enhanced Market Fund is measured against the S&P 500 Stock Index, an unmanaged index generally representative of the U.S. stock market as a whole. The index does not reflect the deduction of fees associated with a mutual fund, such as investment management fees. The Fund's performance does reflect the deduction of fees for these value-added services. Investors cannot invest directly in an index, although they can invest in its underlying securities. During the period shown, the Advisor waived and/or reimbursed fees for various expenses. Had these waivers and/or reimbursements not been in effect, performance quoted would have been lower. /1/Performance for the Class B and Class I Shares, which commenced operations on 9/2/98 and 12/11/98, respectively, are based on the historical performance of the Class A Shares (without sales charge) prior to that date. The historical performance for the Class B Shares has been adjusted to reflect the higher 12b-1 fees and the contingent deferred sales charge (CDSC). Effective 12/1/02, the Trust Shares were renamed Class I Shares. Past performance is no guarantee of future results. Investment return and net asset value will fluctuate, so that an investor's shares, when redeemed, may be worth more or less than the original cost. SHAREHOLDERS SHOULD RETAIN THIS SUPPLEMENT WITH THE ANNUAL REPORT FOR FUTURE REFERENCE. AMSOUTH FUNDS RE: AmSouth International Equity Fund Annual Report Graph Dear Shareholder: Enclosed for your information is a corrected version of the performance graph for the AmSouth International Equity Fund which appeared on page 21 of the AmSouth Funds' Annual Report dated July 31, 2003. The performance of the index reflected in the graph for the AmSouth International Equity Fund was incorrect. Originally, the performance of a hypothetical $10,000 investment in the MSCI EAFE Index was shown in the graph for the AmSouth International Equity Fund as $8,550 and it should have been $8,721. For updated information concerning this and other AmSouth Funds, please see the AmSouth Funds' Semi-Annual Report to Shareholders dated January 31, 2004. Sincerely, /s/ Nadeem Yousaf Nadeem Yousaf SHAREHOLDERS SHOULD RETAIN THIS SUPPLEMENT WITH THE ANNUAL REPORT FOR FUTURE REFERENCE. AMSOUTH FUNDS Supplement dated April 30 , 2004 to Annual Report dated July 31, 2003 This Supplement provides the following amended information and supercedes any information to the contrary in the Annual Report dated July 31, 2003: The graph for the AmSouth International Equity Fund on page 21 is deleted in its entirety and replaced with the following: [GRAPH APPEARS HERE] The chart reflects the performance of the Class A Shares. The performance of the Class B Shares and the Class I Shares will be greater or less than the line shown in the above chart based on the differences in the sales charges and the expenses paid by shareholders investing in Class A Shares, Class B Shares and Class I Shares. Average Annual Total Return As of Inception 1 5 Since July 31, 2003 Date Year Year Inception ----------------------------------------------------------------------- Class A Shares* 8/15/97 5.28% -5.09% -2.45% ----------------------------------------------------------------------- Class B Shares** 2/2/99/1/ 6.13% -5.05% -2.41% ----------------------------------------------------------------------- Class I Shares 12/14/98/1/ 11.73% -3.86% -1.39% ----------------------------------------------------------------------- * Reflects maximum 5.50% sales charge. ** Reflects applicable contingent deferred sales charge (maximum 5.00%).
AmSouth International Equity MSCI Fund (Class A Shares)* EAFE(R) Index ---------------------------- ------------- 08/15/1997 9452 10000 9149 9253 9773 9772 8998 9020 9093 8928 12/31/1997 9168 9006 9395 9418 9897 10023 10493 10331 10673 10413 10730 10362 10474 10441 10588 10547 8875 9240 8449 8957 9149 9890 9679 10397 12/31/1998 10037 10807 9952 10775 9705 10519 10028 10958 10559 11402 10170 10815 10654 11236 10995 11570 11166 11612 11147 11729 11422 12169 11754 12591 12/31/1999 12724 13721 11794 12850 11852 13196 12389 13707 11852 12986 11670 12669 12197 13164 11861 12612 11855 12722 11279 12102 11135 11816 10808 11373 12/31/2000 11262 11777 11262 11771 10627 10889 9843 10163 10359 10869 10120 10486 9813 10057 9416 9874 9237 9624 8156 8649 8215 8870 8464 9197 12/31/2001 8523 9252 8117 8760 8236 8822 8752 9342 8772 9361 8881 9479 8484 9102 7749 8203 7779 8187 6767 7310 7144 7703 7630 8054 12/31/2002 7249 7784 7080 7460 6881 7289 6693 7151 7447 7860 8003 8344 8242 8550 07/31/2003 8629 8721
The chart and table above compare a hypothetical $10,000 investment from 8/15/97 to 7/31/03 in the indicated share class versus a similar investment in the Fund's benchmark. The performance information presented above assumes the reinvestment of dividends and capital gains and does not reflect the deduction of taxes that a shareholder would pay on distributions and redemptions. The performance of the AmSouth International Equity Fund is measured against the Morgan Stanley Capital International, MSCI (Europe, Australasia and Far East) EAFE* Index, which is unmanaged index that is comprised of a sample of companies representative of the market structure of 20 European and Pacific Basin countries. The index does not reflect the deduction of fees associated with a mutual fund, such as investment management fees. The Fund's performance does reflect the deduction of fees for these value-added services. Investors cannot invest directly in an index, although they can invest in its underlying securities. During the period shown, the Advisor waived and/or reimbursed fees for various expenses. Had these waivers and/or reimbursements not been in effect, performance quoted would have been lower. The quoted returns reflect the performance from 8/15/97 to 12/31/98, of the DG International Equity Fund and from 12/14/98 to 3/12/00 of the ISG International Equity Fund, which were open-end investment companies that were the predecessor funds to the AmSouth International Equity Fund. /1/Performance for the Class B and Class I Shares, which commenced operations on 2/2/99 and 12/14/98, respectively, are based on the historical performance of the Class A Shares (without sales charge) prior to that date. The historical performance for the Class B Shares has been adjusted to reflect the higher 12b-1 fees and the contingent deferred sales charge (CDSC). Effective 12/1/02, the Trust Shares were renamed Class I Shares. Past performance is no guarantee of future results. Investment return and net asset value will fluctuate, so that an investor's shares, when redeemed, may be worth more or less than the original cost. SHAREHOLDERS SHOULD RETAIN THIS SUPPLEMENT WITH THE ANNUAL REPORT FOR FUTURE REFERENCE. ANNUAL REPORT July 31, 2003 [LOGO] AMSOUTH FUNDS(R) www.amsouthfunds.com TABLE OF CONTENTS Glossary of Terms................................................ 2 Management Discussion of Performance Message from the Chairman and Investment Advisor............. 5 Fund Summary Value Fund................................................... 6 Select Equity Fund........................................... 8 Enhanced Market Fund......................................... 10 Large Cap Fund............................................... 12 Capital Growth Fund.......................................... 14 Mid Cap Fund................................................. 16 Small Cap Fund............................................... 18 International Equity Fund.................................... 20 Balanced Fund................................................ 22 Strategic Portfolios......................................... 24 Government Income Fund....................................... 30 Limited Term Bond Fund....................................... 32 Bond Fund.................................................... 34 Municipal Bond Fund.......................................... 36 Florida Tax-Exempt Fund...................................... 38 Tennessee Tax-Exempt Fund.................................... 40 Money Market Funds........................................... 42 Schedule of Portfolio Investments Value Fund................................................... 43 Select Equity Fund........................................... 44 Enhanced Market Fund......................................... 45 Large Cap Fund............................................... 49 Capital Growth Fund.......................................... 51 Mid Cap Fund................................................. 52 Small Cap Fund............................................... 56 International Equity Fund.................................... 58 Balanced Fund................................................ 63 Strategic Portfolios: Aggressive Growth Portfolio............ 65 Strategic Portfolios: Growth Portfolio....................... 66 Strategic Portfolios: Growth and Income Portfolio............ 66 Strategic Portfolios: Moderate Growth and Income Portfolio... 67 Government Income Fund....................................... 67 Limited Term Bond Fund....................................... 68 Bond Fund.................................................... 70 Municipal Bond Fund.......................................... 73 Florida Tax-Exempt Fund...................................... 78 Tennessee Tax-Exempt Fund.................................... 79 Prime Money Market Fund...................................... 81 U.S. Treasury Money Market Fund.............................. 82 Treasury Reserve Money Market Fund........................... 82 Tax-Exempt Money Market Fund................................. 83 Institutional Prime Obligations Money Market Fund............ 85 Statements of Assets and Liabilities............................. 88 Statements of Operations......................................... 92 Statements of Changes in Net Assets.............................. 96 Notes to Financial Statements.................................... 100 Financial Highlights............................................. 118 Report of Independent Auditors................................... 136
1 GLOSSARY OF TERMS Lehman Brothers Government/Credit Bond Index is comprised of all bonds that are investment-grade rated Baa or higher by Moody's or BBB or higher by S&P, if unrated by Moody's. Issues must have at least one year to maturity. Total return comprises price appreciation/depreciation and income as a percentage of the original investment. Lehman Brothers Mortgage Index is comprised of all fixed securities mortgage pools by GNMA, FNMA and the FHLMC, including GNMA Graduated Payment Mortgages. Lipper Balanced Funds Average is comprised of mutual funds whose primary objective is to conserve principal by maintaining at all times a balanced portfolio of both stocks and bonds. Typically, the stock/bond ratio range around 60%/40%. Lipper Corporate Debt Funds A Rated Average is comprised of the mutual funds that invest at least 65% of their assets in corporate debt issues rated "A" or better or government issues. Lipper Multi-Cap Core Funds Average is comprised of mutual funds that invest in a variety of market capitalization ranges, without concentrating 75% of their equity assets in any one market capitalization range over an extended period of time. Multi-Cap funds will generally have between 25% to 75% of their assets invested in companies with market capitalization's (on a three-year weighted basis) above 300% of the dollar-weighted median market capitalization of the S&P Mid-Cap 400 Index. Multi-Cap Core funds have wide latitude in the companies in which they invest. These funds will normally have an average P/E and P/B ratio, and three-year earnings growth figure, compared to that of the U.S. diversified multi-cap equity funds universe average. Lipper Multi-Cap Growth Funds Average is comprised of mutual funds that invest in a variety of market capitalization ranges, without concentrating 75% of their equity assets in any one market capitalization range over an extended period of time. Multi-Cap funds will generally have between 25% to 75% of their assets invested in companies with market capitalizations (on a three-year weighted basis) above 300% of the dollar-weighted median market capitalization of the S&P MidCap 400 Index. Multi-Cap Growth funds normally invest in companies with long-term earnings expected to grow significantly faster than the earnings of the stocks represented in a major unmanaged stock index. These funds will normally have an above average P/E and P/B ratio and three-year earnings growth figure, compared to that of the U.S. diversified multi-cap equity funds universe average. Lipper Flexible Portfolio Funds Average is comprised of mutual funds that allocate their investments across various asset classes, including domestic common stocks, bonds, and money market instruments with a focus on total return. Lipper General Municipal Bond Average is comprised of mutual funds that invest at least 65% of their assets in municipal debt issues in the top four credit ratings. Lipper Short Intermediate Investment Grade Debt Funds Average is comprised of mutual funds that invest at least 65% of their assets in investment grade debt issues (rated in the top four grades) with dollar-weighted average maturities of one to five years. Lipper Large-Cap Core Funds Average is comprised of mutual funds that invest at least 75% of their equity assets in companies with market capitalizations (on a three-year weighted basis) greater than 300% of the dollar-weighted median market capitalization of the middle 1,000 securities of the S&P SuperComposite 1500 Index. Large-cap core funds have more latitude in the companies in which they invest. These funds typically have an average P/E and P/B ratio, and three-year sales-per-share growth value, compared to that of the S&P 500 Stock Index. Lipper Large-Cap Growth Funds Average is comprised of mutual funds that, by portfolio practice, invest at least 75% of their equity assets in companies with market capitalizations (on a three-year weighted basis) greater than 300% of the dollar-weighted median market capitalization of the middle 1,000 securities of the S&P SuperComposite 1500 Index. Large-cap growth funds typically have an above-average P/E and P/B ratio, and three-year sales-per-share growth value, compared to that of the S&P 500 Stock Index. Lipper Large Cap Value Funds Average is comprised of mutual funds that, by portfolio practice, invest at least 75% of their equity assets in companies with market capitalizations (on a three-year weighted basis) greater than 300% of the dollar-weighted median market capitalization of the middle 1,000 securities of the S&P SuperComposite 1500 Index. Large-cap value funds typically have a below-average price-to-earnings ratio, price-to-book ratio, and three-year sales-per-share growth value, compared to the S&P 500 Index. Lipper Mid-Cap Growth Funds Average is comprised of mutual funds that, by portfolio practice, invest at least 75% of their equity assets in companies with market capitalization's (on a three-year weighted basis) of less than 300% of the dollar-weighted median market capitalization of the middle 1,000 securities of the S&P SuperComposite 1500 Index. Mid-cap growth funds typically have an above-average P/E and P/B ratio, and three-year sales-per-share growth value, compared to that of the S&P MidCap 400 Index. Lipper Small-Cap Growth Funds Average is comprised of mutual funds that, by portfolio practice, invest at least 75% of their equity assets in companies with market capitalization's (on a three-year weighted basis) less than 250% of the dollar-weighted median of the smallest 500 of the middle 1,000 securities of the S&P SuperComposite 1500 Index. Small-cap growth funds typically have an above-average P/E and P/B ratio, and three-year sales-per-share growth value, compared to that of the S&P SmallCap 600 Index. 2 GLOSSARY OF TERMS Lipper Other States Intermediate Municipal Debt Funds Average is comprised of mutual funds that invest in municipal debt issues with dollar-weighted average maturities of five to ten years and are exempt from taxation on a specified city or state basis. Lipper Florida Municipal Debt Funds Average is comprised of mutual funds that invest at least 65% of their assets in municipal debt issues that are exempt from taxation in Florida, with dollar-weighted average maturities of five to ten years. Lipper U.S. Mortgage Funds Average is comprised of mutual funds that invest at least 65% of their assets in mortgages/securities issued or guaranteed as to principal and interest by the U.S. government and certain federal agencies. Merrill Lynch 1-5-Year Government Bond Index tracks the performance of government bonds in that maturity range with a rating of at least Baa. Merrill Lynch 1-12-Year Municipal Bond Index tracks the performance of municipal bonds with intermediate maturities of a least one year, but no more than 12 years maturities. Merrill Lynch 3-7-Year Municipal Bond Index tracks the performance of municipal bonds with intermediate maturities of a least three years, but no more than seven years. Merrill Lynch Government/Corporate Master Index consists of issues which include corporate debt obligations rated BBB or better and publicly issued, non-convertible domestic debt of the U.S. government or any agency thereof. These quality parameters are based on composites of ratings assigned by Standard and Poor's Ratings Group and Moody's Investors Service, Inc. Only notes and bonds with a minimum maturity of one year are included. Morgan Stanley Capital International (MSCI), Europe, Australasia and Far East (EAFE) Index is comprised of a sample of companies representative of the market structure of 20 European and Pacific Basin countries. Price-to-Earnings Ratio (P/E) -- A valuation ratio of a company's current share price to its per-share earnings. A high P/E means high projected earnings in the future. This ratio gives an investor an idea of how much they are paying for a particular company's earning power. Price-to-Book Ratio (P/B) -- The ratio of price-to-book value gives an investor an idea about the relationship between the stock's price and the company's underlying value. Other things being equal, people who invest for value prefer companies with a low ratio of price-to-book value. Russell 2000(R) Growth Index tracks the performance of domestically traded common stocks of small- to mid-sized companies with higher price-to-book ratios and higher forecasted growth values. Standard & Poor's 1500 SuperComposite Index is a combination of the S&P 500, S&P MidCap 400, and S&P SmallCap 600 indices, and provides a broad representation of the entire U.S. market, representing 87% of total U.S. equity market capitalization. S&P/Barra Growth and Value Indexes are constructed by dividing the stocks in an index according to a single attribute: book-to-price ratio. The value index contains firms with higher book-to-price ratios; conversely, the growth index has firms with lower book-to-price ratios. Each company in the index is assigned to either the value or growth index so that the two style indexes "add up" to the full index. Like the full S&P indexes, the value and growth indexes are capitalization-weighted, meaning that each stock is weighted in proportion to its market value. Standard & Poor's 500 Stock Index is an unmanaged index of 500 selected common stocks, most of which are listed on the New York Stock Exchange, and is a measure of the U.S. stock market as a whole. Standard & Poor's MidCap 400 Index is an unmanaged index comprised of 400 domestic stocks chosen for market size (median market capitalization of $676 million), liquidity and industry group representation. 3 [THIS PAGE INTENTIONALLY LEFT BLANK] 4 MESSAGE FROM THE CHAIRMAN AND INVESTMENT ADVISOR DEAR SHAREHOLDERS: We are pleased to send you this annual report for the 12-month period ended July 31, 2003. During the early months of the period the run-up to war with Iraq threw a wet blanket on the economy and the stock market. Economic data improved in the spring of 2003 and the stock market staged a strong rebound. Meanwhile, fixed-income investments posted strong gains until mid-June, and then lost ground. The Economy Begins to Recover The economy began the period showing modest growth, spurred by a great deal of stimulus from the Federal Reserve (the "Fed"). The rate of economic recovery was hindered by sluggish business spending and hiring, which resulted in part from a federal government directive requiring the country's largest 1,000 companies to certify their financial records. This directive was part of an effort to restore investor confidence following a series of accounting scandals. The mandate forced business leaders to focus on past performance instead of future spending initiatives. The Fed cut short-term interest rates by 0.50 percentage points in November in an attempt to stimulate the economy. The potential of war with Iraq also hampered business spending by creating geopolitical uncertainty that made it difficult for corporate leaders to discern the direction of the economy. Rising energy prices also dragged on the economy during those months. The economy during the fourth quarter of 2002 and the first quarter of 2003 grew at an annualized rate below 2%. Consumer spending helped keep economic growth positive, as low mortgage rates allowed consumers to refinance their home loans and free up extra cash. The economy showed signs of strength during the second quarter of 2003, growing at an annualized rate of 2.4%. Business spending increased at an annualized rate of 6.9%, while consumer spending rose 3.3%. During June, policymakers became concerned about the possibility of deflation--a difficult economic environment characterized by falling prices. The Fed in June lowered interest rates by 0.25 percentage points to help prevent deflation, adding additional stimulus to the economic recovery. Stocks Fall, Then Rebound Stock prices were very volatile during the period. Stronger federal oversight of corporate accounting procedures encouraged investors in August, and stocks rose. However, stock strength faded during September, as concerns about the looming war and the direction of the economy caused investors to sell equities. Relatively strong corporate profit reports during October and November pushed stock prices somewhat higher, but war-related fears again caused stocks to decline. The stock market began its most recent rally in mid-March, as the beginning of the war with Iraq lifted the uncertainty that had been hanging over the market. Stocks surged through June powered by strong earnings reports and investors' expectations for an economic rebound. Technology and biotechnology stocks led the market rally, as investors prized shares that would benefit the most from a stronger economy. The stock market traded in a narrow range during July, as investors debated the strength of the economic recovery. The Standard & Poor's 500 Stock Index/1/ gained 10.64% during the 12 months ended July 31, 2003. The Bull Market in Bonds Comes to an End Bonds benefited from many of the factors that weighed on stocks during much of the period. For example, the economy's weakness during 2002 and early 2003 helped boost bond prices, as cautious investors chose to keep money in fixed-income securities instead of stocks. We believe that low inflation--and the potential for deflation--also caused investors to favor bonds. What's more, the uncertainty caused by the economic uncertainty led investors to seek the relative stability of fixed-income investments, and the Fed's two interest-rate cuts helped push down bond yields. Corporate bonds fared especially well, largely because they offered significantly higher yields than government issues. The environment for fixed-income securities changed in mid-June. Yields rose dramatically during the final seven weeks of the period as the improving economy increased the risk of an up-tick in the inflation rate. Meanwhile, the resolution to the war with Iraq removed much of the uncertainty that had driven investors to seek stability in bonds. Yields on long-term Treasury bonds rose sharply during the final seven weeks of the period--the biggest seven-week surge in yields since March 1987. Yields of short-term bonds did not rise as much as long-term yields, due to investors' belief that the Fed would act to keep short-term interest rates low. Going Forward We believe that the economy will continue to recover, supported by low short-term interest rates as well as tax cuts and other economic stimuli. Business spending should increase as companies expand their inventories to prepare for a healthier economy, potentially creating a virtuous cycle of economic growth. Stocks have gained considerable ground since their March lows. We believe stocks could fall back temporarily between August and October--traditionally the weakest period of the year for the stock market. We feel such losses could provide a good buying opportunity for long-term investors, because a sustained economic recovery could lead to greater stock-market gains during the coming year. That said, stocks might remain strong through this fall if economic growth shows signs of accelerating. Beyond the improving economic fundamentals, the preferential tax treatment for common stocks that was signed into law on June 6 is providing a catalyst for renewed interest in the equity market. Investors are not missing the big shift in relative after-tax returns favoring common stock dividends, and investor preferences are changing accordingly. Despite the sunset provision which causes the lower tax rate on dividends to expire at the end of 2008, we anticipate the popularity of the tax cut to persuade future Congresses to make it permanent, as well as most of the other provisions of the Bush tax cuts which also have sunset provisions. With the high likelihood for the principle of equal taxation for dividends and capital gains becoming a long-standing feature of the tax code, we expected numerous companies to review their dividend policies and undertake a move toward higher dividend payout ratios. In light of this equal tax treatment, investors could view empire-building odysseys, which waste corporate cash, very negatively, and paying cash dividends and effectively managing core businesses may be favorably received. We believe fixed-income securities could lag stocks during the coming year. Bonds currently offer very low yields, even after recent yield increases. The large and growing federal budget deficit could result in a greater supply in the Treasury market, potentially pushing yields higher. An improving economy and stock market could also hurt bond returns. Short-term issues should hold up better than long-term bonds, as we believe the Fed will probably keep short-term interest rates low to support the economic recovery. We would like to take this opportunity to remind shareholders of the importance of diversification. Many investors at the end of the bull market of the late 1990s held too great a stake in technology stocks and other highly cyclical shares, and many of those investors suffered painful losses during the following three years. Likewise, many investors who moved large portions of their portfolios into bonds during recent years have been hurt by bonds' large declines since mid-June. A well-diversified portfolio that contains various types of stocks and bonds will better serve shareholders. Such a portfolio could possibly help smooth out returns while potentially providing the best opportunity for long-term gains.* Thank you for your confidence in the AmSouth Funds. We will continue to maintain a diverse selection of mutual funds with a long-term investment focus--a combination designed to help you meet your most cherished financial goals. Sincerely, /s/ J. David Huber J. David Huber Chairman AmSouth Funds /s/ Joseph T. Keating Joseph T. Keating Chief Investment Officer AmSouth Investment Management Company, LLC August 25, 2003 * Diversification does not guarantee a profit nor protect against a loss. /1/See Glossary of Terms for additional information. Investments in the Funds are neither guaranteed by, nor obligations of, AmSouth Bank or any other bank and are not insured by the FDIC or any other government agency. Investment in mutual funds involves risk, including the possible loss of principal. This material must be preceded or accompanied by a current prospectus. 5 AMSOUTH VALUE FUND Portfolio Manager [GRAPHIC] Tin Y. Chan, CFA PORTFOLIO MANAGER'S PERSPECTIVE Senior Vice President "The AmSouth Value Fund uses a 'value investing' approach. Rather than pursue hot stocks that are in high demand, we AmSouth Bank search for solid companies with good fundamentals that are AmSouth Asset Management, Inc. available at attractive prices. By adhering to this investment approach through entire market cycles, we seek to achieve Tin Chan serves as manager of the AmSouth Value above average long-term results with less volatility than the Fund and as co-manager of the AmSouth Balanced overall market." Fund. He also is director of value equity strategies for AmSouth Bank. With more than a decade of experience in equity investments and research, he has had portfolio management responsibilities for retail and insurance-related mutual funds. He holds two undergraduate degrees from Cornell University and earned an MBA from the Graduate School of Business at the University of Chicago.
[GRAPHIC] Q&A Q. How did the Fund perform during the 12-month period ended July 31, 2003? A. The Fund gained 8.02% (Class A Shares at NAV). In comparison the Fund's benchmark, the S&P 500/BARRA Value Index gained 12.50%. Q. What factors affected the Fund's performance? A. A general decline in the stock market hurt the Fund's returns during the first three quarters of the period. Stocks rebounded sharply during the final quarter, however, helping the Fund post gains for the period. The Fund benefited from its focus on value stocks, which outperformed growth stocks. The Fund's returns relative to the benchmark benefited early in the period from our focus on shares of large firms with strong balance sheets. Such stocks held up better than other shares as investors sought stability. The Fund's returns lagged the benchmark during the final quarter of the period, as stocks that are more speculative led the market rally. This Fund does not invest in those types of stocks, so did not benefit from their gains. We changed the Fund's sector allocations in March to position the portfolio for an economic recovery. In particular, we increased the Fund's weightings in consumer-discretionary and industrial stocks. We also reduced the Fund's allocations to health care and utilities stocks. Those moves helped the Fund's performance during the final quarter of the period. We also reduced the Fund's weighting in technology stocks in March. We felt valuations in that sector were too high, and earnings for many technology companies were not as reliable as we would like to see. However, technology stocks led the market during the last three months of the period, which hurt the Fund's relative returns. 6 AMSOUTH VALUE FUND [CHART] Value of a $10,000 Investment AmSouth Value Fund S&P 500/BARRA (Class A Shares)* Value Index ----------------- ------------- 07/31/93 $ 9,448 $10,000 08/31/93 9,806 10,392 09/30/93 9,672 10,388 10/31/93 9,834 10,444 11/30/93 9,773 10,257 12/31/93 10,047 10,431 01/31/94 10,502 10,918 02/28/94 10,252 10,524 03/31/94 9,767 10,091 04/30/94 9,820 10,303 05/31/94 10,050 10,474 06/30/94 9,915 10,184 07/31/94 10,195 10,529 08/31/94 10,508 10,826 09/30/94 10,286 10,445 10/31/94 10,405 10,672 11/30/94 9,957 10,240 12/31/94 10,084 10,366 01/31/95 10,274 10,646 02/28/95 10,713 11,059 03/31/95 11,030 11,364 04/30/95 11,448 11,739 05/31/95 11,767 12,261 06/30/95 11,785 12,354 07/31/95 12,159 12,779 08/31/95 12,183 12,889 09/30/95 12,434 13,337 10/31/95 12,211 13,129 11/30/95 12,696 13,817 12/31/95 12,847 14,200 01/31/96 13,231 14,625 02/29/96 13,397 14,763 03/31/96 13,746 15,108 04/30/96 14,174 15,262 05/31/96 14,332 15,492 06/30/96 14,207 15,417 07/31/96 13,506 14,767 08/31/96 13,968 15,174 09/30/96 14,277 15,824 10/31/96 14,220 16,360 11/30/96 15,056 17,612 12/31/96 14,869 17,323 01/31/97 15,439 18,122 02/28/97 15,950 18,254 03/31/97 15,624 17,629 04/30/97 15,997 18,290 05/31/97 17,180 19,437 06/30/97 17,828 20,180 07/31/97 19,225 21,794 08/31/97 18,555 20,809 09/30/97 19,710 22,029 10/31/97 18,697 21,220 11/30/97 19,306 22,029 12/31/97 19,671 22,518 01/31/98 19,733 22,240 02/28/98 21,149 23,908 03/31/98 22,279 25,119 04/30/98 22,075 25,417 05/31/98 22,007 25,059 06/30/98 22,240 25,249 07/31/98 21,598 24,701 08/31/98 18,708 20,729 09/30/98 19,889 21,989 10/31/98 21,582 23,711 11/30/98 22,621 24,946 12/31/98 23,136 25,822 01/31/99 23,156 26,344 02/28/99 22,648 25,777 03/31/99 23,255 26,558 04/30/99 24,988 28,847 05/31/99 25,055 28,338 06/30/99 25,626 29,426 07/31/99 24,820 28,521 08/31/99 24,015 27,799 09/30/99 22,788 26,711 10/31/99 23,795 28,219 11/30/99 23,566 28,054 12/31/99 24,030 29,108 01/31/00 22,649 28,182 02/29/00 21,109 26,421 03/31/00 23,704 29,176 04/30/00 23,425 28,981 05/31/00 23,820 29,071 06/30/00 22,427 27,923 07/31/00 22,788 28,481 08/31/00 24,398 30,391 09/30/00 24,497 30,384 10/31/00 25,076 30,951 11/30/00 24,193 29,367 12/31/00 25,250 30,878 01/31/01 26,709 32,182 02/28/01 26,190 30,049 03/31/01 25,405 28,863 04/30/01 27,194 30,821 05/31/01 27,992 31,143 06/30/01 27,784 30,135 07/31/01 27,597 29,613 08/31/01 26,807 27,902 09/30/01 24,407 25,251 10/31/01 25,329 25,251 11/30/01 25,847 26,854 12/31/01 26,281 27,263 01/31/02 26,029 26,514 02/28/02 25,377 26,277 03/31/02 27,864 27,624 04/30/02 26,263 26,240 05/31/02 25,119 26,345 06/30/02 22,366 24,683 07/31/02 18,985 22,015 08/31/02 19,357 22,166 09/30/02 16,460 19,633 10/31/02 17,582 21,266 11/30/02 19,544 22,760 12/31/02 18,577 21,577 01/31/03 18,434 20,987 02/28/03 17,347 20,415 03/31/03 17,232 20,389 04/30/03 18,772 22,405 05/31/03 20,231 24,054 06/30/03 20,394 24,230 07/31/03 20,508 24,768 The chart reflects the performance of the Class A Shares. The performance of the Class B Shares and the Class I Shares will be greater or less than the line shown in the above chart based on the differences in the sales charges and the expenses paid by shareholders investing in Class A Shares, Class B Shares and Class I Shares. Average Annual Total Return ---------------------------------------------------------------------------- As of July 31, 2003 Inception Date 1 Year 5 Year 10 Year ---------------------------------------------------------------------------- Class A Shares* 12/1/88 2.10% -2.14% 7.45% Class B Shares** 9/3/97/1/ 2.17% -2.01% 7.58% Class I Shares 9/2/97/1/ 8.21% -0.86% 8.16% ---------------------------------------------------------------------------- *Reflects maximum 5.50% sales charge. **Reflects applicable contingent deferred sales charge (maximum 5.00%). The chart and table above compare a hypothetical $10,000 investment from 7/31/93 to 7/31/03 versus a similar investment in the Fund's benchmark. The performance information presented above assumes the reinvestment of dividends and capital gains and does not reflect the deduction of taxes that a shareholder would pay on distributions and redemptions. The performance of the AmSouth Value Fund is measured against the S&P 500/BARRA Value Index, an unmanaged index generally representative of the stocks in the S&P 500 with the lowest price-to-book ratios. The index does not reflect the deduction of fees associated with a mutual fund, such as investment management fees. The Fund's performance does reflect the deduction of fees for these value-added services. Investors cannot invest directly in an index, although they can invest in its underlying securities. During the period shown, the Advisor waived and/or reimbursed fees for various expenses. Had these waivers and/or reimbursements not been in effect, performance quoted would have been lower. /1/ Performance for the Class B and Class I Shares, which commenced operations on 9/3/97 and 9/2/97, respectively, are based on the historical performance of the Class A Shares (without sales charge) prior to that date. The historical performance for the Class B Shares has been adjusted to reflect the higher 12b-1 fees and the contingent deferred sales charge (CDSC). Effective 12/1/02, the Trust Shares were renamed Class I Shares. Past performance is no guarantee of future results. Investment return and net asset value will fluctuate, so that an investor's shares, when redeemed, may be worth more or less than the original cost. 7 AMSOUTH SELECT EQUITY FUND PORTFOLIO MANAGERS [GRAPHIC] OakBrook Investments, LLC (sub-advisor): PORTFOLIO MANAGER'S PERSPECTIVE Neil Wright, President and Chief Investment Officer "Our goal in managing the AmSouth Select Equity Fund is Janna Sampson, Director of Portfolio Management to outperform the S&P 500 over a complete market cycle Peter Jankovskis, Director of Research while experiencing less volatility than the broad stock market. We look for 20 to 25 leading companies that have As portfolio managers for the AmSouth Select Equity Fund, a dominant market position, or a well-known brand name, Neil Wright, Janna Sampson and Peter Jankovskis are three yet whose stock price is undervalued. To make this 'growth veteran investment professionals who have more than 50 at a reasonable price' strategy work, we use economic years of combined experience. Neil and Peter hold PhDs in theory to determine whether a company is likely to recover economics, and Janna holds an MA in economics. They have its dominant position after a dip. We believe our patient, worked together for the past 11 years. They also serve as long-term approach offers excellent defensive protection, the portfolio managers for the AmSouth Enhanced Market Fund which can help reduce losses when the market is weak." and the AmSouth Mid Cap Fund.
[GRAPHIC] Q&A Q. How did the Fund perform during the 12-month period through July 31, 2003? A. The Fund gained 8.77% (Class A Shares at NAV) during the period. In comparison, the Fund's benchmark the S&P 500 Stock Index gained 10.64%. The Lipper Multi-Cap Core Funds Average/1/ returned 11.04%. Q. What factors affected the Fund's performance during the period? A. The overall stock market was weak during the first nine-and-a-half months of the period, but then rebounded sharply. Those trends hurt the Fund's absolute returns during the period through mid-March, and then helped the Fund's performance during the rest of the period. The Fund outperformed its benchmark while the stock market struggled. This Fund invests in what we call "market-power" stocks: shares of firms with leading market share in their industries and barriers such as strong brands or patents that can protect their market-share advantage. Those attributes typically produce reliable earnings--which often cause market-power stocks to perform relatively well when the economy is weak and during other uncertain market environments. The Fund trailed its benchmark during the spring's stock-market rebound, because this Fund does not hold the types of speculative shares that led the market recovery. That said, the Fund's returns relative to the benchmark did benefit late in the period from our earlier decision to shift some assets into cyclical stocks that we felt were likely to participate strongly in an economic recovery. The Fund's relative returns also benefited from our decision to sell an interest-rate sensitive stock late in the period. Such stocks performed poorly in the face of investors' expectations of higher interest rates going forward. /1/See Glossary of Terms for additional information. The AmSouth Select Equity Fund is subadvised by OakBrook Investments, LLC, which is paid a fee for its services. 8 AMSOUTH SELECT EQUITY FUND [CHART] Value of a $10,000 Investment AmSouth Select Equity Fund S&P 500 (Class A Shares)* Stock Index ---------------- ----------- 9/1/1998 $9,452 $10,000 9/30/1998 9,928 10,245 10/31/1998 10,772 11,078 11/30/1998 11,052 11,749 12/31/1998 11,400 12,426 1/31/1999 11,286 12,945 2/28/1999 11,003 12,542 3/31/1999 10,994 13,044 4/30/1999 11,924 13,549 5/31/1999 11,488 13,229 6/30/1999 11,973 13,963 7/31/1999 11,289 13,528 8/31/1999 10,919 13,460 9/30/1999 10,409 13,091 10/31/1999 10,514 13,920 11/30/1999 10,057 14,202 12/31/1999 10,246 15,039 1/31/2000 9,537 14,284 2/29/2000 8,803 14,014 3/31/2000 9,346 15,385 4/30/2000 9,170 14,922 5/31/2000 9,606 14,616 6/30/2000 9,461 14,975 7/31/2000 9,048 14,742 8/31/2000 9,516 15,657 9/30/2000 9,840 14,830 10/31/2000 10,261 14,768 11/30/2000 10,711 13,604 12/31/2000 11,543 13,671 1/31/2001 11,075 14,156 2/28/2001 11,159 12,865 3/31/2001 10,826 12,051 4/30/2001 11,107 12,987 5/31/2001 11,522 13,074 6/30/2001 11,439 12,757 7/31/2001 11,668 12,632 8/31/2001 11,918 11,841 9/30/2001 11,274 10,884 10/31/2001 11,269 11,092 11/30/2001 11,965 11,943 12/31/2001 12,403 12,048 1/31/2002 12,260 11,872 2/28/2002 12,562 11,643 3/31/2002 12,790 12,081 4/30/2002 12,297 11,348 5/31/2002 12,422 11,265 6/30/2002 11,808 10,462 7/31/2002 11,433 9,646 8/31/2002 11,610 9,709 9/30/2002 10,746 8,654 10/31/2002 11,353 9,415 11/30/2002 11,697 9,970 12/31/2002 11,272 9,385 1/31/2003 10,937 9,139 2/28/2003 10,626 9,002 3/31/2003 10,644 9,089 4/30/2003 11,428 9,838 5/31/2003 12,195 10,356 6/30/2003 12,362 10,489 7/31/2003 12,436 10,673 The chart reflects the performance of the Class A Shares. The performance of the Class B Shares and the Class I Shares will be greater or less than the line shown in the above chart based on the differences in the sales charges and the expenses paid by shareholders investing in Class A Shares, Class B Shares and Class I Shares. Average Annual Total Return -------------------------------------------------------------------------------- As of July 31, 2003 Inception Date 1 Year Since Inception -------------------------------------------------------------------------------- Class A Shares* 9/1/98 2.78% 4.54% Class B Shares** 9/2/98/1/ 2.98% 4.64% Class I Shares 12/3/98/1/ 8.96% 5.91% -------------------------------------------------------------------------------- *Reflects maximum 5.50% sales charge. **Reflects applicable contingent deferred sales charge (maximum 5.00%). The chart and table above compare a hypothetical $10,000 investment from 9/1/98 to 7/31/03 in the indicated share class versus a similar investment in the Fund's benchmark. The performance information presented above assumes the reinvestment of dividends and capital gains and does not reflect the deduction of taxes that a shareholder would pay on distributions and redemptions. The performance of the AmSouth Select Equity Fund is measured against the S&P 500 Stock Index, an unmanaged index generally representative of the U.S. stock market as a whole. The index does not reflect the deduction of fees associated with a mutual fund, such as investment management fees. The Fund's performance does reflect the deduction of fees for these value-added services. Investors cannot invest directly in an index, although they can invest in its underlying securities. During the period shown, the Advisors waived and/or reimbursed fees for various expenses. Had these waivers and/or reimbursements not been in effect, performance quoted would have been lower. 1Performance for the Class B and Class I Shares, which commenced operations on 9/2/98 and 12/3/98, respectively, are based on the historical performance of the Class A Shares (without sales charge) prior to that date. The historical performance for the Class B Shares has been adjusted to reflect the higher 12b-1 fees and the contingent deferred sales charge (CDSC). Effective 12/1/02, the Trust Shares were renamed Class I Shares. Past performance is no guarantee of future results. Investment return and net asset value will fluctuate, so that an investor's shares, when redeemed, may be worth more or less than the original cost. 9 AMSOUTH ENHANCED MARKET FUND PORTFOLIO MANAGERS [GRAPHIC] OakBrook Investments, LLC (sub-advisor): Neil Wright, President and Chief Investment Officer PORTFOLIO MANAGERS' PERSPECTIVE Janna Sampson, Director of Portfolio Management "Our stock selection strategy for the AmSouth Enhanced Peter Jankovskis, Director of Research Market Fund is fairly conservative, with Fund returns having a very close correlation to those of the S&P 500. We try to be Neil Wright, Janna Sampson and Peter Jankovskis are three 100% invested and do not try to time the market. Through veteran investment professionals who have more than 50 years of the use of a sophisticated computer model, we attempt to combined experience. Neil and Peter have PhDs in economics, and identify and invest in 350 to 425 stocks within the S&P 500 Janna holds an MA in economics. They have worked together for that are starting to experience a widening range of investor the past 11 years. In addition to the Enhanced Market Fund, they expectations. We look to overweight those stocks that we also serve as portfolio managers of the AmSouth Select Equity believe will outperform the overall market." Fund and the AmSouth Mid Cap Fund.
[GRAPHIC] Q&A Q. How did the Fund perform during the 12 months ended July 31, 2003? A. The Fund gained 8.54% (Class A Shares at NAV) during the period. In comparison, the Fund's benchmark the S&P 500 Stock Index gained 10.64%. The Lipper Large-Cap Core Funds Average/1/ gained 8.19%. Q. What factors affected the Fund's returns during the period? A. This Fund is an enhanced index fund that holds most of the stocks in the S&P 500. We use a computer model to determine which of those stocks analysts expect to perform well going forward. We then increase the Fund's investments in those shares, and decrease the Fund's investments in the shares that are expected to perform poorly. We rebalance the Fund's portfolio once a quarter. The general market environment naturally had a large impact on absolute Fund performance during the period. The stock market fell between July 2002 and mid-March, 2003, resulting in negative returns for the Fund during that time. Stocks subsequently rebounded sharply, helping the Fund make up ground and finish the 12-month period in positive territory. The Fund trailed its benchmark while the overall stock market fell. That happened largely because our computer model focuses on earnings expectations, which were overshadowed during much of that period by other factors such as economic projections and the prospect for war with Iraq. Early in the period overweight positions in health care and financial services stocks hurt returns, as did the Fund's overweight stake in industrials and consumer staples stocks during the first months of 2003. Our overweight position in information technology stocks during that time helped boost returns. /1/See Glossary of Terms for additional information. The AmSouth Enhanced Market Fund is subadvised by Oakbrook Investments, LLC, which is paid a fee for its services. 10 AMSOUTH ENHANCED MARKET FUND [CHART] AmSouth Enhanced Market Fund S&P 500 (Class A Shares)* Stock Index --------------- ----------- 9/1/1998 $ 9,452 $10,000 9/30/1998 10,048 10,245 10/31/1998 10,841 11,078 11/30/1998 11,535 11,749 12/31/1998 12,130 12,426 1/31/1999 12,624 12,945 2/28/1999 12,195 12,542 3/31/1999 12,746 13,044 4/30/1999 13,222 13,549 5/31/1999 12,901 13,229 6/30/1999 13,624 13,963 7/31/1999 13,226 13,528 8/31/1999 13,233 13,460 9/30/1999 12,840 13,091 10/31/1999 13,588 13,920 11/30/1999 13,884 14,202 12/31/1999 14,684 15,039 1/31/2000 14,025 14,284 2/29/2000 13,747 14,014 3/31/2000 15,070 15,385 4/30/2000 14,674 14,922 5/31/2000 14,368 14,616 6/30/2000 14,635 14,975 7/31/2000 14,477 14,742 8/31/2000 15,397 15,657 9/30/2000 14,546 14,830 10/31/2000 14,530 14,768 11/30/2000 13,405 13,604 12/31/2000 13,474 13,671 1/31/2001 13,927 14,156 2/28/2001 12,615 12,865 3/31/2001 11,799 12,051 4/30/2001 12,766 12,987 5/31/2001 12,796 13,074 6/30/2001 12,504 12,757 7/31/2001 12,363 12,632 8/31/2001 11,566 11,841 9/30/2001 10,578 10,884 10/31/2001 10,850 11,092 11/30/2001 11,731 11,943 12/31/2001 11,779 12,048 1/31/2002 11,677 11,872 2/28/2002 11,423 11,643 3/31/2002 11,848 12,081 4/30/2002 11,061 11,348 5/31/2002 10,961 11,265 6/30/2002 10,174 10,462 7/31/2002 9,383 9,646 8/31/2002 9,409 9,709 9/30/2002 8,328 8,654 10/31/2002 9,062 9,415 11/30/2002 9,591 9,970 12/31/2002 9,014 9,385 1/31/2003 8,750 9,139 2/28/2003 8,613 9,002 3/31/2003 8,673 9,089 4/30/2003 9,395 9,838 5/31/2003 9,898 10,356 6/30/2003 10,007 10,489 7/31/2003 10,185 10,673 The chart reflects the performance of the Class A Shares. The performance of the Class B Shares and the Class I Shares will be greater or less than the line shown in the above chart based on the differences in the sales charges and the expenses paid by shareholders investing in Class A Shares, Class B Shares and Class I Shares. Average Annual Total Return --------------------------------------------------------------------- As of July 31, 2003 Inception Date 1 Year Since Inception --------------------------------------------------------------------- Class A Shares* 9/1/98 2.61% 0.37% Class B Shares** 9/2/98/1/ 2.79% 0.37% Class I Shares 12/11/98/1/ 8.71% 1.69% --------------------------------------------------------------------- *Reflects maximum 5.50% sales charge. **Reflects applicable contingent deferred sales charge (maximum 5.00%). The chart and table above compare a hypothetical $10,000 investment from 9/1/98 to 7/31/03 in the indicated share class versus a similar investment in the Fund's benchmark. The performance information presented above assumes the reinvestment of dividends and capital gains and does not reflect the deduction of taxes that a shareholder would pay on distributions and redemptions. The performance of the AmSouth Enhanced Market Fund is measured against the S&P 500 Stock Index, an unmanaged index generally representative of the U.S. stock market as a whole. The index does not reflect the deduction of fees associated with a mutual fund, such as investment management fees. The Fund's performance does reflect the deduction of fees for these value-added services. Investors cannot invest directly in an index, although they can invest in its underlying securities. During the period shown, the Advisor waived and/or reimbursed fees for various expenses. Had these waivers and/or reimbursements not been in effect, performance quoted would have been lower. /1/ Performance for the Class B and Class I Shares, which commenced operations on 9/2/98 and 12/11/98, respectively, are based on the historical performance of the Class A Shares (without sales charge) prior to that date. The historical performance for the Class B Shares has been adjusted to reflect the higher 12b-1 fees and the contingent deferred sales charge (CDSC). Effective 12/1/02, the Trust Shares were renamed Class I Shares. Past performance is no guarantee of future results. Investment return and net asset value will fluctuate, so that an investor's shares, when redeemed, may be worth more or less than the original cost. 11 AMSOUTH LARGE CAP FUND Portfolio Manager [GRAPHIC] Ronald E. Lindquist Senior Vice President PORTFOLIO MANAGER'S PERSPECTIVE AmSouth Bank "The AmSouth Large Cap Fund is managed in a traditional large-cap growth style. AmSouth Asset Management, Inc. Our goal is to outperform the S&P 500 Stock Index/1/ over multiple market cycles. We look for industry leaders that have shown the potential to generate Ron Lindquist has more than 35 years of relatively predictable, above-average 3- to 5-year earnings streams. We focused investment management typically purchase stocks of large, high-quality companies with superior experience. A founding member of the earnings per share growth rates and correspondingly appropriate price/earnings Financial Analysts Society of South ratios. We consider sales when a stock's relative price/earnings ratio is well Florida, he has a master's degree in in excess of historical, similar-market norms or when a significant and ongoing management science from Florida earnings stream deterioration is forecast." International University and a BS in finance from Florida State University.
[GRAPHIC] Q&A Q. How did the Fund perform during the 12-month period ended July 31, 2003? A. The Fund returned 10.45% (Class A Shares at NAV). The Fund's benchmark, the S&P 500 Stock Index, returned 10.64%. Q. What factors affected the Fund's performance during the period? A. The Fund's absolute returns during nearly all of the first nine months of the period suffered from the general weakness experienced in the broader stock market. But then stocks rebounded sharply from the middle of March through the end of the fiscal year, helping the Fund post double-digit gains. Our long-term strategic decision to hold an overweight stake in shares of technology companies helped the Fund, as stocks in that economic sector led the market. The Fund also benefited from its typically large stake in health care stocks. Our investments in biotechnology shares performed exceptionally well, more than offsetting weak performance by pharmaceutical stocks in our portfolio. For the most part, we did not hold shares of firms in the energy, utilities, telecommunications or basic materials sectors, because companies in those sectors typically do not exhibit the traditional growth characteristics we seek. This strategy helped the Fund's relative returns, since those sectors lagged the index during the period. Long term, the Fund also tends to underweight financial-services stocks. That characteristic hurt relative returns during the period, although the Fund's financial-services holdings as a group performed well relative to our benchmark. The Fund routinely maintains significant positions in shares of industrial, consumer-discretionary and consumer-staples firms, which, on average, did not keep pace with the index. /1/See Glossary of Terms for additional information. 12 AMSOUTH LARGE CAP FUND [CHART] Value of a $10,000 Investment AmSouth Large Cap Fund S&P 500 (Class A Shares)* Stock Index ----------------- ----------- 07/31/1993 $ 9,446 $10,000 08/31/1993 9,788 10,379 09/30/1993 9,560 10,299 10/31/1993 9,977 10,512 11/30/1993 10,014 10,412 12/31/1993 10,134 10,538 01/31/1994 10,293 10,896 02/28/1994 10,153 10,600 03/31/1994 9,746 10,139 04/30/1994 9,783 10,269 05/31/1994 9,867 10,436 06/30/1994 9,593 10,181 07/31/1994 9,735 10,515 08/31/1994 10,179 10,945 09/30/1994 9,980 10,678 10/31/1994 10,350 10,917 11/30/1994 10,122 10,520 12/31/1994 10,314 10,676 01/31/1995 10,622 10,953 02/28/1995 10,988 11,379 03/31/1995 11,263 11,714 04/30/1995 11,611 12,059 05/31/1995 11,911 12,540 06/30/1995 12,175 12,831 07/31/1995 12,621 13,256 08/31/1995 12,466 13,289 09/30/1995 13,039 13,850 10/31/1995 13,322 13,800 11/30/1995 13,798 14,406 12/31/1995 13,924 14,683 01/31/1996 14,512 15,182 02/29/1996 14,694 15,324 03/31/1996 14,448 15,471 04/30/1996 14,651 15,699 05/31/1996 14,967 16,103 06/30/1996 14,965 16,165 07/31/1996 14,323 15,451 08/31/1996 14,557 15,777 09/30/1996 15,518 16,664 10/31/1996 15,579 17,124 11/30/1996 16,805 18,417 12/31/1996 16,378 18,052 01/31/1997 17,424 19,179 02/28/1997 17,455 19,330 03/31/1997 16,827 18,537 04/30/1997 18,032 19,643 05/31/1997 19,081 20,844 06/30/1997 19,870 21,770 07/31/1997 21,519 23,502 08/31/1997 20,406 22,187 09/30/1997 21,315 23,401 10/31/1997 20,695 22,620 11/30/1997 21,936 23,667 12/31/1997 22,262 24,073 01/31/1998 22,855 24,339 02/28/1998 24,393 26,093 03/31/1998 25,086 27,428 04/30/1998 25,288 27,709 05/31/1998 24,916 27,233 06/30/1998 26,142 28,339 07/31/1998 26,078 28,039 08/31/1998 23,009 23,988 09/30/1998 24,588 25,526 10/31/1998 26,706 27,600 11/30/1998 28,472 29,272 12/31/1998 30,693 30,957 01/31/1999 32,186 32,251 02/28/1999 31,028 31,249 03/31/1999 31,548 32,499 04/30/1999 31,370 33,758 05/31/1999 30,846 32,961 06/30/1999 33,011 34,786 07/31/1999 32,476 33,704 08/31/1999 32,454 33,537 09/30/1999 31,729 32,619 10/31/1999 32,955 34,682 11/30/1999 34,727 35,387 12/31/1999 36,478 37,469 01/31/2000 35,306 35,586 02/29/2000 34,343 34,913 03/31/2000 36,837 38,327 04/30/2000 37,097 37,174 05/31/2000 36,837 36,412 06/30/2000 38,126 37,309 07/31/2000 36,641 36,726 08/31/2000 38,186 39,006 09/30/2000 36,859 36,947 10/31/2000 37,439 36,790 11/30/2000 35,863 33,892 12/31/2000 35,670 34,058 01/31/2001 36,203 35,266 02/28/2001 33,566 32,052 03/31/2001 31,142 30,023 04/30/2001 33,109 32,354 05/31/2001 33,581 32,571 06/30/2001 32,179 31,779 07/31/2001 32,346 31,466 08/31/2001 30,883 29,498 09/30/2001 28,246 27,116 10/31/2001 29,115 27,634 11/30/2001 31,645 29,753 12/31/2001 31,643 30,013 01/31/2002 31,679 29,576 02/28/2002 30,903 29,005 03/31/2002 31,861 30,096 04/30/2002 29,677 28,272 05/31/2002 29,273 28,065 06/30/2002 26,847 26,066 07/31/2002 24,987 24,035 08/31/2002 24,955 24,192 09/30/2002 22,050 21,566 10/31/2002 24,606 23,462 11/30/2002 26,161 24,841 12/31/2002 24,279 23,383 01/31/2003 23,554 22,771 02/28/2003 23,043 22,429 03/31/2003 23,359 22,646 04/30/2003 25,200 24,511 05/31/2003 26,703 25,801 06/30/2003 27,007 26,131 07/31/2003 27,599 26,592 The chart reflects the performance of the Class A Shares. The performance of the Class B Shares and the Class I Shares will be greater or less than the line shown in the above chart based on the differences in the sales charges and the expenses paid by shareholders investing in Class A Shares, Class B Shares and Class I Shares. Average Annual Total Return ------------------------------------------------------------------------------ As of July 31, 2003 Inception Date 1 Year 5 Year 10 Year ------------------------------------------------------------------------------ Class A Shares* 8/3/92 4.37% 0.00% 10.69% Class B Shares** 12/15/98/1/ 4.63% 0.07% 10.32% Class I Shares 12/14/98/1/ 10.65% 1.24% 11.37% ------------------------------------------------------------------------------ *Reflects maximum 5.50% sales charge. **Reflects applicable contingent deferred sales charge (maximum 5.00%). The chart and table above compare a hypothetical $10,000 investment from 7/31/93 to 7/31/03 in the indicated share class versus a similar investment in the Fund's benchmark. The performance information presented above assumes the reinvestment of dividends and capital gains and does not reflect the deduction of taxes that a shareholder would pay on distributions and redemptions. The performance of the AmSouth Large Cap Fund is measured against the S&P 500 Stock Index, an unmanaged index generally representative of the U.S. stock market as a whole. The index does not reflect the deduction of fees associated with a mutual fund, such as investment management fees. The Fund's performance does reflect the deduction of fees for these value-added services. Investors cannot invest directly in an index, although they can invest in its underlying securities. During the period shown, the Advisor waived and/or reimbursed fees for various expenses. Had these waivers and/or reimbursements not been in effect, performance quoted would have been lower. The quoted returns reflect the performance from 8/3/92 to 12/13/98 of the DG Equity Fund and from 12/14/98 to 3/12/00 of the ISG Large Cap Equity Fund, which were open-end investment companies that were predecessor funds to the AmSouth Large Cap Fund. /1/Performance for the Class B and Trust Shares, which commenced operations on 12/15/98 and 12/14/98, respectively, are based on the historical performance of the Class A Shares (without sales charge) prior to that date. The historical performance for the Class B Shares has been adjusted to reflect the higher 12b-1 fees and the contingent deferred sales charge (CDSC). Effective 12/1/02, the Trust Shares were renamed Class I Shares. Past performance is no guarantee of future results. Investment return and net asset value will fluctuate, so that an investor's shares, when redeemed, may be worth more or less than the original cost. 13 AMSOUTH CAPITAL GROWTH FUND Portfolio Managers [GRAPHIC] Charles E. Winger, Sr., CFA Senior Vice President PORTFOLIO MANAGERS' PERSPECTIVE "As a growth-oriented fund, the Capital Growth Fund focuses Robert A. Rinner, CFA on industry leaders with high earnings per share. We Senior Vice President generally look for annual earnings growth of 15% or higher. After identifying strong themes, such as technology or health AmSouth Bank care, we select companies that have financial strength, good AmSouth Asset Management, Inc. return on equity, reasonable debt-to-equity ratios and strong revenue growth. We apply sell discipline through price targets Charles Winger has more than 30 years and downside alerts." of investment management experience, including 11 years with First American National Bank. He has served as a president of the Nashville Society of Financial Analysts. He holds his MBA and a BA in psychology from the University of Tennessee. Robert Rinner has nearly 20 years of experience in equity portfolio management and analysis. Prior to joining AmSouth, he was associated with First American National Bank. He is a graduate of the University of Iowa, with a bachelor of science degree in finance. He earned an MBA from the University of Oklahoma.
[GRAPHIC] Q&A Q. How did the Fund perform during the 12-month period ended July 31, 2003? A. The Fund's total return was 9.92% (Class A Shares at NAV). That compared to a 10.64% and 8.89% return for the Fund's benchmarks, the S&P 500 Stock Index and the S&P 500/Barra Growth Index. The Lipper Large-Cap Growth Funds Average/1/ returned 10.31%. Q. What factors affected the Fund's performance during the period? A. The Fund's returns were hurt by weakness in the stock market during the first nine months of the period, but benefited from stocks' strong rebound during the three months through July. The Fund's focus on growth stocks hurt performance, because growth shares lagged value stocks during the period. Likewise, the Fund's strategy of investing primarily in large-cap stocks hindered gains, as large shares lagged small caps. Moreover, the market rally was led by low-quality stocks, rather than the high-quality shares in which this Fund invests. The Fund's returns relative to the benchmark held up well despite those negative factors. One reason: The Fund held a significant stake in mid-cap stocks, which outperformed the large-cap stocks represented by the S&P 500. Sector allocation and stock selection also affected the Fund's relative returns. For example, the Fund held overweight stakes in technology and retail stocks. Those sectors performed relatively poorly during the first nine months of the period but then rebounded dramatically--more than compensating for their earlier losses. The Fund's underweight positions in consumer staples, energy and utilities stocks also helped relative returns, as those sectors lagged the benchmark. The Fund's overweight allocation to health-care stocks hurt relative returns, we feel that sector suffered from worries about the potential for new regulations in the pharmaceutical industry. /1/See Glossary of Terms for additional information. 14 AMSOUTH CAPITAL GROWTH FUND [CHART] Value of a $10,000 Investment AmSouth Capital S&P 500 Growth Fund Stock S&P 500/BARRA (Class A Shares)* Index Growth Index ---------------- ----- ------------- 07/31/1993 $ 9,444 $10,000 $10,000 08/31/1993 9,648 10,379 10,365 09/30/1993 9,702 10,299 10,206 10/31/1993 9,593 10,512 10,586 11/30/1993 9,512 10,412 10,578 12/31/1993 9,661 10,538 10,652 01/31/1994 10,041 10,896 10,880 02/28/1994 9,905 10,600 10,685 03/31/1994 9,485 10,139 10,192 04/30/1994 9,417 10,269 10,238 05/31/1994 9,472 10,436 10,405 06/30/1994 9,173 10,181 10,183 07/31/1994 9,404 10,515 10,507 08/31/1994 9,837 10,945 11,069 09/30/1994 9,648 10,678 10,911 10/31/1994 9,756 10,917 11,165 11/30/1994 9,431 10,520 10,799 12/31/1994 9,621 10,676 10,986 01/31/1995 9,878 10,953 11,258 02/28/1995 10,257 11,379 11,697 03/31/1995 10,501 11,714 12,064 04/30/1995 10,488 12,059 12,378 05/31/1995 10,867 12,540 12,821 06/30/1995 11,016 12,831 13,312 07/31/1995 11,572 13,256 13,736 08/31/1995 11,463 13,289 13,692 09/30/1995 11,897 13,850 14,368 10/31/1995 11,816 13,800 14,483 11/30/1995 12,466 14,406 15,005 12/31/1995 12,547 14,683 15,174 01/31/1996 13,035 15,182 15,754 02/29/1996 13,360 15,324 15,897 03/31/1996 13,550 15,471 15,830 04/30/1996 13,916 15,699 16,138 05/31/1996 14,160 16,103 16,732 06/30/1996 14,146 16,165 16,940 07/31/1996 13,279 15,451 16,159 08/31/1996 13,537 15,777 16,398 09/30/1996 14,282 16,664 17,536 10/31/1996 14,892 17,124 17,917 11/30/1996 15,772 18,417 19,255 12/31/1996 15,339 18,052 18,811 01/31/1997 16,165 19,179 20,284 02/28/1997 15,921 19,330 20,454 03/31/1997 15,186 18,537 19,482 04/30/1997 16,149 19,643 21,055 05/31/1997 17,152 20,844 22,301 06/30/1997 17,825 21,770 23,430 07/31/1997 19,359 23,502 25,285 08/31/1997 18,395 22,187 23,604 09/30/1997 19,363 23,401 24,807 10/31/1997 18,942 22,620 24,061 11/30/1997 19,499 23,667 25,367 12/31/1997 20,062 24,073 25,680 01/31/1998 20,171 24,339 26,542 02/28/1998 21,754 26,093 28,387 03/31/1998 22,773 27,428 29,855 04/30/1998 22,695 27,709 30,105 05/31/1998 21,801 27,233 29,501 06/30/1998 22,914 28,339 31,604 07/31/1998 23,118 28,039 31,586 08/31/1998 20,046 23,988 27,476 09/30/1998 21,603 25,526 29,315 10/31/1998 22,780 27,600 31,773 11/30/1998 23,879 29,272 33,925 12/31/1998 26,492 30,957 36,506 01/31/1999 27,835 32,251 38,735 02/28/1999 27,089 31,249 37,215 03/31/1999 27,873 32,499 39,018 04/30/1999 27,686 33,758 38,943 05/31/1999 26,697 32,961 37,807 06/30/1999 28,768 34,786 40,513 07/31/1999 28,246 33,704 39,231 08/31/1999 27,817 33,537 39,776 09/30/1999 27,281 32,619 39,099 10/31/1999 28,537 34,682 41,802 11/30/1999 29,661 35,387 43,591 12/31/1999 32,282 37,469 46,818 01/31/2000 31,114 35,586 43,699 02/29/2000 31,091 34,913 44,616 03/31/2000 34,191 38,327 48,742 04/30/2000 33,315 37,174 46,329 05/31/2000 32,394 36,412 44,440 06/30/2000 33,697 37,309 48,027 07/31/2000 33,630 36,726 45,889 08/31/2000 35,734 39,006 48,546 09/30/2000 35,249 36,947 43,808 10/31/2000 34,995 36,790 42,669 11/30/2000 32,802 33,892 38,133 12/31/2000 32,060 34,058 36,482 01/31/2001 32,084 35,266 37,522 02/28/2001 28,549 32,052 33,113 03/31/2001 25,282 30,023 30,129 04/30/2001 27,940 32,354 32,821 05/31/2001 27,964 32,571 32,899 06/30/2001 27,184 31,779 32,453 07/31/2001 26,477 31,466 32,369 08/31/2001 24,112 29,498 30,195 09/30/2001 21,406 27,116 28,169 10/31/2001 22,503 27,634 29,205 11/30/2001 24,697 29,753 31,791 12/31/2001 25,087 30,013 31,837 01/31/2002 25,112 29,576 31,788 02/28/2002 24,161 29,005 30,850 03/31/2002 25,136 30,096 31,585 04/30/2002 23,649 28,272 29,325 05/31/2002 22,869 28,065 28,757 06/30/2002 21,235 26,066 26,450 07/31/2002 19,407 24,035 25,180 08/31/2002 19,455 24,192 25,338 09/30/2002 17,749 21,566 22,714 10/31/2002 19,455 23,462 24,815 11/30/2002 20,309 24,841 26,019 12/31/2002 18,773 23,383 24,328 01/31/2003 18,383 22,771 23,720 02/28/2003 18,212 22,429 23,649 03/31/2003 18,456 22,646 24,129 04/30/2003 19,846 24,511 25,745 05/31/2003 20,528 25,801 26,583 06/30/2003 20,674 26,131 27,067 07/31/2003 21,333 26,592 27,421 The chart reflects the performance of the Class A Shares. The performance of the Class B Shares and the Class I Shares will be greater or less than the line shown in the above chart based on the differences in the sales charges and the expenses paid by shareholders investing in Class A Shares, Class B Shares and Class I Shares. Average Annual Total Return -------------------------------------------------------------------------------- As of July 31, 2003 Inception Date 1 Year 5 Year 10 Year -------------------------------------------------------------------------------- Class A Shares* 4/1/96/1/ 3.92% -2.70% 7.87% Class B Shares** 2/5/98/2/ 4.13% -2.51% 7.49% Class I Shares 10/3/97/2/ 10.08% -1.41% 8.52% -------------------------------------------------------------------------------- *Reflects maximum 5.50% sales charge. **Reflects applicable contingent deferred sales charge (maximum 5.00%). The chart and table above compare a hypothetical $10,000 investment from 7/31/93 to 7/31/03 in the indicated share class versus a similar investment in the Fund's benchmark. The performance information presented above assumes the reinvestment of dividends and capital gains and does not reflect the deduction of taxes that a shareholder would pay on distributions and redemptions. Performance of the AmSouth Capital Growth Fund is measured against the S&P 500 Stock Index, an unmanaged index generally representative of the U.S. stock market as a whole and the S&P 500/Barra Growth Index, an unmanaged index which measure the performance of 500 stocks chosen for their low book-to price ratios. The indices do not reflect the deduction of fees associated with a mutual fund, such as investment management fees. The Fund's performance does reflect the deduction of fees for these value-added services. Investors cannot invest directly in an index, although they can invest in its underlying securities. During the period shown, the Advisor waived and/or reimbursed fees for various expenses. Had these waivers and/or reimbursements not been in effect, performance quoted would have been lower. The Fund has changed its standardized benchmark from the S&P 500 Index to the S&P 500/Barra Growth Index to provide a more appropriate market comparison for the Fund's performance. The quoted returns reflect the performance from 4/1/96 to 3/12/00 of the ISG Capital Growth Fund, an open-end investment company that was the predecessor fund to the AmSouth Capital Growth Fund. /1/The ISG Capital Growth Fund commenced operations on 4/1/96, through a transfer of assets from certain collective trust fund ("commingled") accounts managed by First American National Bank, using substantially the same investment objective, policies and methodologies as the Fund. The quoted performance of the Fund includes performance of the commingled accounts for periods dating back to 7/31/93, and prior to the mutual fund's commencement of operations, as adjusted to reflect the expenses associated with the Fund. The commingled accounts were not registered with the Securities and Exchange Commission and, therefore, were not subject to the investment restrictions imposed by law on registered mutual funds. If the commingled accounts had been registered, the commingled accounts' performance may have been adversely affected. /2/Performance for the Class B and Class I Shares, which commenced operations on 2/5/98 and 10/3/97, respectively, are based on the historical performance of the Class A Shares (without sales charge) prior to that date. The historical performance for the Class B Shares has been adjusted to reflect the higher 12b-1 fees and the contingent deferred sales charge (CDSC). Effective 12/1/02, the Trust Shares were renamed Class I Shares. Past performance is no guarantee of future results. Investment return and net asset value will fluctuate, so that an investor's shares, when redeemed, may be worth more or less than the original cost. 15 AMSOUTH MID CAP FUND Portfolio Managers [GRAPHIC] OakBrook Investments, LLC (sub-advisor): Neil Wright, President and Chief Investment Officer PORTFOLIO MANAGERS' PERSPECTIVE Janna Sampson, Director or Portfolio Management "Our stock selection strategy for the AmSouth Mid Cap Fund Peter Jankovskis, Director of Research is fairly conservative, with Fund returns having a very close correlation to those of the S&P Mid Cap 400 Stock Index/1/. As portfolio managers for the AmSouth Mid Cap Fund, Neil We try to be 100% invested and do not try to time the market. Wright, Janna Sampson and Peter Jankovskis are three Through the use of a sophisticated computer model, we attempt veteran investment professionals who have more than 50 to identify and invest in 320 to 380 stocks within the S&P years of combined experience. Neil and Peter have PhDs in Mid Cap 400 Index that are starting to experience a widening economics, and Janna holds an MA in economics. They have range of investor expectations. We look to overweight those worked together for the past 11 years. The team also stocks that we believe will outperform the overall market." manages the AmSouth Select Equity Fund and the AmSouth Enhanced Market Fund.
[GRAPHIC] Q&A Q. How did the Fund perform during the 12 months ended July 31, 2003? A. The Fund delivered a total return of 11.08% (Class A Shares at NAV). In comparison the Fund's benchmark, the S&P MidCap 400 Index gained 13.85%. Q. What factors affected Fund performance during that time? A. This Fund is an enhanced index fund that holds most of the stocks in the S&P MidCap 400 Index. We use a computer model to estimate the overall market's expectations for the stocks in the index, and adjust the weighting of individual shares accordingly once a quarter. The Fund's absolute returns were hurt by the stock market's weak performance during the first three-quarters of the period, but benefited from a stock-market surge that began in mid-March and continued through the end of July. Mid-cap stocks performed particularly well late in the period, helping boost Fund returns. The Fund trailed its benchmark during most of the year. The model that determines the Fund's stock weightings is based on earnings expectations, and throughout much of the period stock performance was driven by non-fundamental factors--for example, prospects for the economy and the potential repercussions of war with Iraq. The market's focus on non-fundamental factors caused many sectors that were overweight in the Fund to lag the benchmark. For example, the computer model's emphasis on earnings expectations led us to overweight shares of consumer-discretionary and financial-services stocks during the second quarter of the period. For similar reasons, we overweighted health care and technology shares during the third quarter. All of those sectors struggled, and the positions hurt the Fund's returns relative to the benchmark. The Fund benefited near the end of the period from an overweight position in technology stocks, but that gain was not sufficient to offset continued poor results from finance and health care stocks. /1/See Glossary of Terms for additional information. The AmSouth Mid Cap Fund is subadvised by OakBrook Investments, LLC, which is paid a fee for its services. 16 AMSOUTH MID CAP FUND [CHART] Value of a $10,000 Investment AmSouth Mid Cap Fund S&P MidCap (Class A Shares)* 400 Index -------------------- ------------- 05/04/1999 $ 9,452 $10,000 05/31/1999 9,338 10,043 06/30/1999 10,331 10,581 07/31/1999 10,567 10,356 08/31/1999 10,614 10,001 09/30/1999 10,851 9,693 10/31/1999 11,786 10,186 11/30/1999 13,696 10,721 12/31/1999 16,380 11,358 01/31/2000 16,304 11,038 02/29/2000 19,026 11,811 03/31/2000 18,507 12,799 04/30/2000 16,153 12,352 05/31/2000 14,792 12,198 06/30/2000 16,115 12,377 07/31/2000 15,756 12,573 08/31/2000 17,656 13,977 09/30/2000 16,928 13,881 10/31/2000 15,794 13,410 11/30/2000 13,327 12,398 12/31/2000 13,932 13,347 01/31/2001 13,894 13,644 02/28/2001 12,628 12,865 03/31/2001 11,399 11,909 04/30/2001 12,524 13,222 05/31/2001 12,694 13,530 06/30/2001 12,231 13,476 07/31/2001 11,399 13,275 08/31/2001 10,633 12,841 09/30/2001 9,565 11,243 10/31/2001 9,839 11,741 11/30/2001 10,388 12,614 12/31/2001 10,718 13,266 01/31/2002 10,473 13,197 02/28/2002 9,981 13,213 03/31/2002 10,558 14,158 04/30/2002 10,709 14,092 05/31/2002 10,312 13,854 06/30/2002 9,783 12,840 07/31/2002 8,875 11,596 08/31/2002 8,913 11,655 09/30/2002 8,157 10,716 10/31/2002 8,497 11,180 11/30/2002 8,982 11,827 12/31/2002 8,603 11,341 01/31/2003 8,339 11,010 02/28/2003 8,143 10,748 03/31/2003 8,163 10,838 04/30/2003 8,721 11,625 05/31/2003 9,452 12,589 06/30/2003 9,556 12,748 07/31/2003 9,859 13,201 The chart reflects the performance of the Class A Shares. The performance of the Class B Shares and the Class I Shares will be greater or less than the line shown in the above chart based on the differences in the sales charges and the expenses paid by shareholders investing in Class A Shares, Class B Shares and Class I Shares. Average Annual Total Return ----------------------------------------------------------------------- As of July 31, 2003 Inception Date 1 Year Since Inception ----------------------------------------------------------------------- Class A Shares* 5/4/99 4.94% -0.33% Class B Shares** 5/4/99 5.30% -0.31% Class I Shares 5/4/99 11.26% 1.06% ----------------------------------------------------------------------- *Reflects maximum 5.50% sales charge. **Reflects applicable contingent deferred sales charge (maximum 5.00%). The chart and table above compare a hypothetical $10,000 investment from 5/4/99 to 7/31/03 in the indicated share class versus a similar investment in the Fund's benchmark. The performance information presented above assumes the reinvestment of dividends and capital gains and does not reflect the deduction of taxes that a shareholder would pay on distributions and redemptions. The performance of the AmSouth Mid Cap Fund is measured against the S&P MidCap 400 Index an unmanaged index which tracks the performance of 400 domestic stocks chosen for market size (median market capitalization of $676 million), liquidity and industry group representation. The index does not reflect the deduction of fees associated with a mutual fund, such as investment management fees. The Fund's performance does reflect the deduction of fees for these value-added services. Investors cannot invest directly in an index, although they can invest in its underlying securities. During the period shown, the Advisor waived and/or reimbursed fees for various expenses. Had these waivers and/or reimbursements not been in effect, performance quoted would have been lower. The total returns reflect the performance from 5/4/99 to 3/12/00 of the ISG Mid-Cap Fund, an open-end investment company that was the predecessor fund to the AmSouth Mid Cap Fund. Effective 12/1/02, the Trust Shares were renamed Class I Shares. Past performance is no guarantee of future results. Investment return and net asset value will fluctuate, so that an investor's shares, when redeemed, may be worth more or less than the original cost. 17 AMSOUTH SMALL CAP FUND+ PORTFOLIO MANAGER [GRAPHIC] Sawgrass Asset Management, LLC (sub-advisor): Dean McQuiddy, CFA Principal and Director of Equity Investments PORTFOLIO MANAGER'S PERSPECTIVE "For the AmSouth Small Cap Fund, we use a disciplined Dean McQuiddy serves as portfolio manager for the investment process to identify 60 to 80 fundamentally AmSouth Small Cap Fund. He has nearly 20 years of attractive small companies that share certain attributes: experience in investment management and holds a above-market sales and earnings growth, increasing estimates BS in finance. He created and managed the of future earnings and reasonable valuations. We aim to buy small-cap growth product at Barnett Capital these companies in the early stages of their growth--before Advisors for 11 years. their stocks get overvalued in the marketplace."
[GRAPHIC] Q&A Q. How did the Fund perform during the 12-month period ended July 31, 2003? A. The Fund posted a 1.26% return (Class A Shares at NAV). The Fund's benchmark, the Russell 2000(R) Growth Index gained 27.97%. The Lipper Small Cap Growth Funds Average/1/ gained 21.83%. Q. What factors affected the Fund's performance during the period? A. Small-company stocks fell from the beginning of the period through mid-March, leading to temporary losses for the Fund. However, small-cap stocks staged a dramatic recovery during the final three months of the period, helping the Fund produce positive returns. The Fund employs a stock-picking system that identifies attractively valued stocks of companies with good and improving earnings histories. The Fund's focus on earnings and other business fundamentals helped us find promising shares of firms in the consumer-discretionary sector, including shares of home builders, retailers, restaurants and leisure-related companies. Those investments boosted returns during the period. The Fund significantly lagged its benchmark during the period largely because stocks with strong business fundamentals did not lead small caps' surge near the end of the period. Investors instead favored speculative shares of firms that lacked established earnings histories. For example, our focus on earnings steered the Fund away from biotechnology and Internet stocks, because most companies in those industries had little or no earnings and weak balance sheets. Those types of stocks led the market rally by a wide margin. /1/See Glossary of Terms for additional information. + Small-capitalization funds typically carry additional risks since smaller companies generally have a higher risk of failure. Historically, smaller companies' stocks have experienced a greater degree of market volatility than large company stocks on average. The AmSouth Small Cap Fund is subadvised by Sawgrass Asset Management, LLC, which is paid a fee for its services. 18 AMSOUTH SMALL CAP FUND [CHART] Value of a $10,000 Investment AmSouth Small Cap Fund Russell 2000/R/ (Class A Shares)* Growth Index ---------------- ------------ 3/3/1998 $ 9,450 $10,000 3/31/1998 9,764 10,419 4/30/1998 9,764 10,483 5/31/1998 9,063 9,722 6/30/1998 9,328 9,821 7/31/1998 8,664 9,001 8/31/1998 6,712 6,923 9/30/1998 7,479 7,625 10/31/1998 7,261 8,023 11/30/1998 7,840 8,645 12/31/1998 8,901 9,427 1/31/1999 8,456 9,852 2/28/1999 7,698 8,950 3/31/1999 7,186 9,269 4/30/1999 7,091 10,088 5/31/1999 7,299 10,104 6/30/1999 8,001 10,636 7/31/1999 7,963 10,307 8/31/1999 7,925 9,922 9/30/1999 8,105 10,113 10/31/1999 8,134 10,372 11/30/1999 8,958 11,469 12/31/1999 10,323 13,490 1/31/2000 10,295 13,364 2/29/2000 12,390 16,474 3/31/2000 12,523 14,742 4/30/2000 12,238 13,254 5/31/2000 11,565 12,093 6/30/2000 12,561 13,655 7/31/2000 11,869 12,485 8/31/2000 12,940 13,798 9/30/2000 12,911 13,113 10/31/2000 12,902 12,048 11/30/2000 11,262 9,861 12/31/2000 12,251 10,464 1/31/2001 11,536 11,311 2/28/2001 11,031 9,760 3/31/2001 10,390 8,873 4/30/2001 11,315 9,959 5/31/2001 11,105 10,190 6/30/2001 10,947 10,468 7/31/2001 10,642 9,575 8/31/2001 9,759 8,977 9/30/2001 8,739 7,529 10/31/2001 8,539 8,253 11/30/2001 8,665 8,942 12/31/2001 8,844 9,499 1/31/2002 9,023 9,161 2/28/2002 8,876 8,568 3/31/2002 9,117 9,312 4/30/2002 9,454 9,111 5/31/2002 8,855 8,578 6/30/2002 8,297 7,851 7/31/2002 7,498 6,644 8/31/2002 7,456 6,641 9/30/2002 7,077 6,161 10/31/2002 7,014 6,473 11/30/2002 6,888 7,115 12/31/2002 6,478 6,624 1/31/2003 6,352 6,444 2/28/2003 6,057 6,272 3/31/2003 6,131 6,366 4/30/2003 6,552 6,969 5/31/2003 7,109 7,754 6/30/2003 7,246 7,904 7/31/2003 7,593 8,501 The chart reflects the performance of the Class A Shares. The performance of the Class B Shares and the Class I Shares will be greater or less than the line shown in the above chart based on the differences in the sales charges and the expenses paid by shareholders investing in Class A Shares, Class B Shares and Class I Shares. Average Annual Total Return ------------------------------------------------------------------------------- As of July 31, 2003 Inception Date 1 Year 5 Year Since Inception ------------------------------------------------------------------------------- Class A Shares* 3/2/98 -4.24% -3.70% -4.96% Class B Shares** 3/2/98 -4.56% -3.67% -4.89% Class I Shares 3/2/98 1.39% -2.40% -3.81% ------------------------------------------------------------------------------- *Reflects maximum 5.50% sales charge. **Reflects applicable contingent deferred sales charge (maximum 5.00%). The chart and table above compare a hypothetical $10,000 investment from 3/2/98 to 7/31/03 in the indicated share class versus a similar investment in the Fund's benchmark. The performance information presented above assumes the reinvestment of dividends and capital gains and does not reflect the deduction of taxes that a shareholder would pay on distributions and redemptions. The performance of the AmSouth Small Cap Fund is measured against the Russell 2000(R) Growth Index, an unmanaged index generally representative of domestically traded common stocks of small to mid-sized companies. The index does not reflect the deduction of fees associated with a mutual fund, such as investment management fees. The Fund's performance does reflect the deduction of fees for these value-added services. Investors cannot invest directly in an index, although they can invest in its underlying securities. During the period shown, the Advisor waived and/or reimbursed fees for various expenses. Had these waivers and/or reimbursements not been in effect, performance quoted would have been lower. Effective 12/1/02, the Trust Shares were renamed Class I Shares. Past performance is no guarantee of future results. Investment return and net asset value will fluctuate, so that an investor's shares, when redeemed, may be worth more or less than the original cost. 19 AMSOUTH INTERNATIONAL EQUITY FUND+ Portfolio Managers [GRAPHIC] Dimensional Fund Advisors (sub-advisor) PORTFOLIO MANAGERS' PERSPECTIVE Dimensional Fund Advisors Inc. (DFA) "The AmSouth International Equity Fund selects value employs a team approach in sub-advising stocks whose market capitalization is over $800 million the International Equity Fund. The and whose book-to-market ratio currently is in the upper 30% Investment Committee sets policy and of the investment universe for each country. We weight each procedures, and portfolio managers make country in accordance with MSCI EAFE/1/ country weights. daily decisions regarding the Fund. Within a country, we generally hold capitalization-weighted Karen Umland, VP and portfolio manager, positions of all eligible securities. We seek to manage portfolio heads the international group. risk by investing in a broadly diversified cross section of Portfolio managers on the international international value stocks." team are located in Los Angeles, London and Sydney.
[GRAPHIC] Q&A Q. How did the Fund perform during the 12-month period ended July 31, 2003? A. The Fund gained 11.35% (Class A Shares at NAV). In comparison, the Fund's benchmark, the Morgan Stanley Capital International EAFE (Europe, Australasia and Far East) Index gained 6.30%. Q. What factors affected the Fund's performance during the period? A. Global stocks fell during the first half of the period, then posted strong gains during the four months through July. That environment resulted in negative Fund returns through March, followed by sizable gains near the end of the period. Continental Europe and the Pacific Rim provided the strongest gains, while Japan's market was relatively weak. Dimensional Fund Advisors follows a value-oriented investment strategy. We start with a universe of stocks with market capitalizations larger than $800 million in each of 21 developed market countries. We currently invest in the top 30% of that universe in each country, as ranked by book value-to-market capitalization ratios. That strategy is based on studies that indicate that book value-to-market cap and company size are the most important factors in determining stock performance over the long term. We maintain country and regional weightings close to those of the benchmark. That investment strategy helped the Fund significantly outperform the index during the period. Value stocks beat growth stocks during the period, boosting the Fund's relative returns. What's more, the Fund's value style typically leads it to invest in smaller stocks than the shares that make up the benchmark. Small stocks dramatically outperformed larger shares during the period, also contributing to the Fund's superior performance. The Fund outperformed the benchmark in every broad geographical region. + International investing involves increased risk and volatility. /1/See Glossary of Terms for additional information. The AmSouth International Equity Fund is subadvised by Dimensional Fund Advisors, Inc., which is paid a fee for its services. 20 AMSOUTH INTERNATIONAL EQUITY FUND+ [CHART] Value of a $10,000 Investment AmSouth International Equity Fund MSCI EAFE/R/ (Class A Shares)* Index ---------------- --------- 8/15/1997 $9,452 $10,000 8/31/1997 9,149 9,253 9/30/1997 9,773 9,772 10/31/1997 8,998 9,020 11/30/1997 9,093 8,928 12/31/1997 9,168 9,006 1/31/1998 9,395 9,418 2/28/1998 9,897 10,023 3/31/1998 10,493 10,331 4/30/1998 10,673 10,413 5/31/1998 10,730 10,362 6/30/1998 10,474 10,441 7/31/1998 10,588 10,547 8/31/1998 8,875 9,240 9/30/1998 8,449 8,957 10/31/1998 9,149 9,890 11/30/1998 9,679 10,397 12/31/1998 10,037 10,807 1/31/1999 9,952 10,775 2/28/1999 9,705 10,519 3/31/1999 10,028 10,958 4/30/1999 10,559 11,402 5/31/1999 10,170 10,815 6/30/1999 10,654 11,236 7/31/1999 10,995 11,570 8/31/1999 11,166 11,612 9/30/1999 11,147 11,729 10/31/1999 11,422 12,169 11/30/1999 11,754 12,591 12/31/1999 12,724 13,721 1/31/2000 11,794 12,850 2/29/2000 11,852 13,196 3/31/2000 12,389 13,707 4/30/2000 11,852 12,986 5/31/2000 11,670 12,669 6/30/2000 12,197 13,164 7/31/2000 11,861 12,612 8/31/2000 11,855 12,722 9/30/2000 11,279 12,102 10/31/2000 11,135 11,816 11/30/2000 10,808 11,373 12/31/2000 11,262 11,777 1/31/2001 11,262 11,771 2/28/2001 10,627 10,889 3/31/2001 9,843 10,163 4/30/2001 10,359 10,869 5/31/2001 10,120 10,486 6/30/2001 9,813 10,057 7/31/2001 9,416 9,874 8/31/2001 9,237 9,624 9/30/2001 8,156 8,649 10/31/2001 8,215 8,870 11/30/2001 8,464 9,197 12/31/2001 8,523 9,252 1/31/2002 8,117 8,760 2/28/2002 8,236 8,822 3/31/2002 8,752 9,342 4/30/2002 8,772 9,361 5/31/2002 8,881 9,479 6/30/2002 8,484 9,102 7/31/2002 7,749 8,203 8/31/2002 7,779 8,187 9/30/2002 6,767 7,310 10/31/2002 7,144 7,703 11/30/2002 7,630 8,054 12/31/2002 7,249 7,784 1/31/2003 7,080 7,460 2/28/2003 6,881 7,289 3/31/2003 6,693 7,151 4/30/2003 7,447 7,860 5/31/2003 8,003 8,344 6/30/2003 8,242 8,550 7/31/2003 8,629 8,721 The chart reflects the performance of the Class A Shares. The performance of the Class B Shares and the Class I Shares will be greater or less than the line shown in the above chart based on the differences in the sales charges and the expenses paid by shareholders investing in Class A Shares, Class B Shares and Class I Shares. Average Annual Total Return ------------------------------------------------------------------------------- As of July 31, 2003 Inception Date 1 Year 5 Year Since Inception ------------------------------------------------------------------------------- Class A Shares* 8/15/97 5.28% -5.09% -2.45% Class B Shares** 2/2/99/1/ 6.13% -5.05% -2.41% Class I Shares 12/14/98/1/ 11.73% -3.86% -1.39% ------------------------------------------------------------------------------- *Reflects maximum 5.50% sales charge. **Reflects applicable contingent deferred sales charge (maximum 5.00%). The chart and table above compare a hypothetical $10,000 investment from 8/15/97 to 7/31/03 in the indicated share class versus a similar investment in the Fund's benchmark. The performance information presented above assumes the reinvestment of dividends and capital gains and does not reflect the deduction of taxes that a shareholder would pay on distributions and redemptions. The performance of the AmSouth International Equity Fund is measured against the Morgan Stanley Capital International, MSCI (Europe, Australasia and Far East) EAFE(R) Index, which is unmanaged index that is comprised of a sample of companies representative of the market structure of 20 European and Pacific Basin countries. The index does not reflect the deduction of fees associated with a mutual fund, such as investment management fees. The Fund's performance does reflect the deduction of fees for these value-added services. Investors cannot invest directly in an index, although they can invest in its underlying securities. During the period shown, the Advisor waived and/or reimbursed fees for various expenses. Had these waivers and/or reimbursements not been in effect, performance quoted would have been lower. The quoted returns reflect the performance from 8/15/97 to 12/13/98 of the DG International Equity Fund and from 12/14/98 to 3/12/00 of the ISG International Equity Fund, which were open-end investment companies that were the predecessor funds to the AmSouth International Equity Fund. /1/Performance for the Class B and Class I Shares, which commenced operations on 2/2/99 and 12/14/98, respectively, are based on the historical performance of the Class A Shares (without sales charge) prior to that date. The historical performance for the Class B Shares has been adjusted to reflect the higher 12b-1 fees and the contingent deferred sales charge (CDSC). Effective 12/1/02, the Trust Shares were renamed Class I Shares. Past performance is no guarantee of future results. Investment return and net asset value will fluctuate, so that an investor's shares, when redeemed, may be worth more or less than the original cost. 21 AMSOUTH BALANCED FUND PORTFOLIO MANAGERS [GRAPHIC] Tin Y. Chan, CFA PORTFOLIO MANAGERS' PERSPECTIVE Senior Vice President "The AmSouth Balanced Fund is a diversified fund that offers investors a simple and easy way to balance their investments John P. Boston, CFA in stocks as well as in bonds. Within our equity component, Senior Vice President we follow a value strategy, seeking to buy solid companies at attractive prices. We also assess market opportunities to AmSouth Bank allocate assets where we feel they have the best prospects AmSouth Asset Investment Management, Inc. for risk-adjusted returns." With more than a decade of experience in equity investments and research, Tin Chan has had portfolio management responsibilities for retail and insurance-related mutual funds. He holds two undergraduate degrees from Cornell University and earned an MBA from the Graduate School of Business at the University of Chicago. He also serves as manager of the AmSouth Value Fund. John Boston also manages the AmSouth Limited Term Bond Fund and co-manages the AmSouth Bond Fund and the AmSouth Government Income Fund. He has 14 years of experience as a fixed income manager. He holds a bachelor's degree in finance and political science.
[GRAPHIC] Q&A Q. How did the Fund perform during the 12-month period ended July 31, 2003? A. The Fund gained 8.34% (Class A Shares at NAV). In comparison the Fund's benchmarks, the S&P 500 Stock Index and the Lehman Brothers Government/Credit Bond Index gained 10.64% and 7.12%, respectively. The Lipper Balanced Funds Average/1/ gained 8.21%. Q. What factors affected the performance of the Fund during the period? A. We increased the Fund's allocation to equities before the period, from 50% to 55% of assets. That move hurt performance during the first three-quarters of the period, as stocks fell and bond prices rose. The increased equity exposure helped returns late in the period, however, when stocks rallied and bonds fell. The Fund's larger stock allocation increased returns for the period as a whole. We rebalanced the sector allocations of the Fund's equity portfolio in April, because we expected the economy to gain strength. We increased the Fund's stake in consumer-discretionary and industrial stocks, and reduced the Fund's investments in health care and utilities shares. Those moves boosted the Fund's returns during the stock market rally. We decreased the Fund's technology stake, because we did not think technology stocks' valuations and business prospects were attractive. That shift hurt performance, as technology stocks led the market during the final months of the period. We maintained a relatively short duration in the Fund's fixed-income portfolio during the period, because we anticipated that an economic recovery would boost yields. That strategy caused the Fund's bond allocation to lag the fixed-income benchmark as yields fell through most of the period, but contributed to competitive relative performance when yields rose late in the period. /1/See Glossary of Terms for additional information. 22 AMSOUTH BALANCED FUND [CHART] Value of a $10,000 Investment AmSouth Balanced Lehman Brothers Fund (Class Government/Credit S&P 500 Stock A Shares)* Bond Index Index ---------------- ----------------- ------------- 7/31/1993 $ 9,450 $10,000 $10,000 8/31/1993 9,733 10,230 10,379 9/30/1993 9,668 10,265 10,299 10/31/1993 9,774 10,307 10,512 11/30/1993 9,715 10,191 10,412 12/31/1993 9,874 10,235 10,538 1/31/1994 10,188 10,389 10,896 2/28/1994 9,977 10,163 10,600 3/31/1994 9,625 9,915 10,139 4/30/1994 9,644 9,833 10,269 5/31/1994 9,789 9,814 10,436 6/30/1994 9,706 9,791 10,181 7/31/1994 9,935 9,987 10,515 8/31/1994 10,124 9,991 10,945 9/30/1994 9,930 9,840 10,678 10/31/1994 10,002 9,829 10,917 11/30/1994 9,729 9,811 10,520 12/31/1994 9,835 9,876 10,676 1/31/1995 10,012 10,066 10,953 2/28/1995 10,363 10,299 11,379 3/31/1995 10,565 10,368 11,714 4/30/1995 10,864 10,513 12,059 5/31/1995 11,220 10,953 12,540 6/30/1995 11,265 11,041 12,831 7/31/1995 11,450 10,998 13,256 8/31/1995 11,514 11,139 13,289 9/30/1995 11,702 11,252 13,850 10/31/1995 11,655 11,418 13,800 11/30/1995 12,001 11,606 14,406 12/31/1995 12,148 11,777 14,683 1/31/1996 12,417 11,850 15,182 2/29/1996 12,380 11,598 15,324 3/31/1996 12,508 11,501 15,471 4/30/1996 12,665 11,422 15,699 5/31/1996 12,711 11,403 16,103 6/30/1996 12,740 11,555 16,165 7/31/1996 12,407 11,582 15,451 8/31/1996 12,592 11,554 15,777 9/30/1996 12,847 11,759 16,664 10/31/1996 13,002 12,033 17,124 11/30/1996 13,513 12,255 18,417 12/31/1996 13,328 12,118 18,052 1/31/1997 13,613 12,133 19,179 2/28/1997 13,823 12,158 19,330 3/31/1997 13,555 12,014 18,537 4/30/1997 13,848 12,190 19,643 5/31/1997 14,436 12,303 20,844 6/30/1997 14,803 12,451 21,770 7/31/1997 15,684 12,832 23,502 8/31/1997 15,270 12,688 22,187 9/30/1997 15,907 12,887 23,401 10/31/1997 15,590 13,094 22,620 11/30/1997 15,872 13,163 23,667 12/31/1997 16,106 13,301 24,073 1/31/1998 16,268 13,488 24,339 2/28/1998 16,845 13,461 26,093 3/31/1998 17,364 13,502 27,428 4/30/1998 17,285 13,570 27,709 5/31/1998 17,316 13,716 27,233 6/30/1998 17,472 13,856 28,339 7/31/1998 17,181 13,867 28,039 8/31/1998 16,096 14,138 23,988 9/30/1998 16,865 14,542 25,526 10/31/1998 17,565 14,439 27,600 11/30/1998 18,080 14,525 29,272 12/31/1998 18,219 14,561 30,957 1/31/1999 18,225 14,664 32,251 2/28/1999 17,828 14,316 31,249 3/31/1999 18,114 14,387 32,499 4/30/1999 18,948 14,423 33,758 5/31/1999 18,947 14,274 32,961 6/30/1999 19,112 14,229 34,786 7/31/1999 18,795 14,190 33,704 8/31/1999 18,520 14,178 33,537 9/30/1999 18,109 14,306 32,619 10/31/1999 18,451 14,343 34,682 11/30/1999 18,369 14,335 35,387 12/31/1999 18,461 14,248 37,469 1/31/2000 17,964 14,244 35,586 2/29/2000 17,598 14,423 34,913 3/31/2000 18,691 14,631 38,327 4/30/2000 18,599 14,560 37,174 5/31/2000 18,721 14,547 36,412 6/30/2000 18,317 14,844 37,309 7/31/2000 18,598 15,001 36,726 8/31/2000 19,367 15,213 39,006 9/30/2000 19,446 15,270 36,947 10/31/2000 19,722 15,366 36,790 11/30/2000 19,689 15,628 33,892 12/31/2000 20,341 15,937 34,058 1/31/2001 20,608 16,204 35,266 2/28/2001 20,562 16,371 32,052 3/31/2001 20,358 16,446 30,023 4/30/2001 20,911 16,323 32,354 5/31/2001 21,266 16,417 32,571 6/30/2001 21,076 16,496 31,779 7/31/2001 21,188 16,907 31,466 8/31/2001 21,028 17,124 29,498 9/30/2001 20,474 17,281 27,116 10/31/2001 20,907 17,720 27,634 11/30/2001 21,187 17,429 29,753 12/31/2001 21,278 17,292 30,013 1/31/2002 21,227 17,419 29,576 2/28/2002 21,050 17,567 29,005 3/31/2002 21,344 17,210 30,096 4/30/2002 21,028 17,544 28,272 5/31/2002 20,864 17,706 28,065 6/30/2002 20,265 17,856 26,066 7/31/2002 19,587 18,071 24,035 8/31/2002 19,915 18,476 24,192 9/30/2002 18,891 18,874 21,566 10/31/2002 19,776 18,693 23,462 11/30/2002 20,216 18,704 24,841 12/31/2002 19,819 19,200 23,383 1/31/2003 19,472 19,199 22,771 2/28/2003 19,309 19,541 22,429 3/31/2003 19,259 19,516 22,646 4/30/2003 20,049 19,724 24,511 5/31/2003 21,073 20,285 25,801 6/30/2003 21,304 20,204 26,131 7/31/2003 21,220 19,357 26,592 The chart reflects the performance of the Class A Shares. The performance of the Class B Shares and the Class I Shares will be greater or less than the line shown in the above chart based on the differences in the sales charges and the expenses paid by shareholders investing in Class A Shares, Class B Shares and Class I Shares. Average Annual Total Return -------------------------------------------------------------------------------- As of July 31, 2003 Inception Date 1 Year 5 Year 10 Year -------------------------------------------------------------------------------- Class A Shares* 12/19/91 2.41% 3.15% 7.81% Class B Shares** 9/2/97/1/ 2.55% 3.30% 7.52% Class I Shares 9/2/97/1/ 8.49% 4.54% 8.56% -------------------------------------------------------------------------------- *Reflects maximum 5.50% sales charge. **Reflects applicable contingent deferred sales charge (maximum 5.00%). The chart and table above compare a hypothetical $10,000 investment from 7/31/93 to 7/31/03 in the indicated share class versus a similar investment in the Fund's benchmarks. The performance information presented above assumes the reinvestment of dividends and capital gains and does not reflect the deduction of taxes that a shareholder would pay on distributions and redemptions. The performance of the AmSouth Balanced Fund is measured against the S&P 500 Stock Index, an unmanaged index generally representative of the U.S. stock market as a whole; and the Lehman Brothers Government/Credit 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 fees associated with a mutual fund, such as investment management fees. The Fund's performance does reflect the deduction of fees for these value-added services. Investors cannot invest directly in an index, although they can invest in its underlying securities. During the period shown, the Advisor waived and/or reimbursed fees for various expenses. Had these waivers and/or reimbursements not been in effect, performance quoted would have been lower. /1/Performance for the Class B and Class I Shares, which commenced operations on 9/2/97, are based on the historical performance of the Class A Shares (without sales charge) prior to that date. The historical performance for the Class B Shares has been adjusted to reflect the higher 12b-1 fees and the contingent deferred sales charge (CDSC). Effective 12/1/02, the Trust Shares were renamed Class I Shares. Past performance is no guarantee of future results. Investment return and net asset value will fluctuate, so that an investor's shares, when redeemed, may be worth more or less than the original cost. 23 AMSOUTH STRATEGIC PORTFOLIOS AGGRESSIVE GROWTH [GRAPHIC] GROWTH GROWTH and INCOME PORTFOLIO MANAGERS' PERSPECTIVE MODERATE GROWTH and INCOME The Portfolios seek to provide investors with the potential to achieve a variety of long- and short-term goals, commensurate The AmSouth Strategic Portfolios are with investors' specific time horizons and tolerance for risk. managed by a team of AmSouth investment Each of the four Strategic Portfolios invests in a combination managers, including both equity and of underlying mutual funds from the AmSouth fund family. fixed income specialists. The team has Based on each Portfolio's asset-allocation target, the more than 40 years of combined managers periodically rebalance stock, bond and money- investment management experience. market holdings--based on analysis of economic and market trends.
[GRAPHIC] Q&A Q. How did the Funds perform during the period? A. During the 12-month period ended July 31, 2003, the Funds' total returns, and benchmark returns and other comparative returns were as follows: AmSouth Aggressive Growth Portfolio (Class A Shares at NAV): 9.81% S&P 500 Stock Index: 10.64% Lipper Multi-Cap Core Funds Average/1/: 11.04% AmSouth Growth Portfolio (Class A Shares at NAV): 9.18% S&P 500 Stock Index: 10.64% Lipper Multi-Cap Core Funds Average/1/: 11.04% AmSouth Growth and Income Portfolio (Class A Shares at NAV): 8.30% S&P 500 Stock Index: 10.64% Merrill Lynch Government/Corporate Master Index: 6.89% Lipper Large-Cap Value Funds Average/1/: 8.06% AmSouth Moderate Growth and Income Portfolio (Class A Shares at NAV): 7.85% S&P 500 Stock Index: 10.64% Merrill Lynch Government/Corporate Master Index: 6.89% Lipper Flexible Portfolio Funds Average/1/: 8.52% Q. What factors affected the Portfolios' performance? A. We increased the equity allocations of the Portfolios by five percentage points immediately prior to the period. That move hurt returns through March as stocks struggled and bonds performed well. The Portfolios benefited from their increased equity exposure during the final two-and-a-half months of the period, as the stock market rebounded dramatically and bond prices fell. The Portfolios' increased stock holdings boosted returns for the 12-month period as a whole. Stocks' strong performance relative to bonds caused the more aggressive Portfolios to outperform the more conservative Portfolios. We implemented a new strategy to manage the equity assets of the Portfolios in February. The new approach, which we call the AmSouth diversified equity strategy, calls for holding a larger percentage of assets in the Portfolios' core stock fund, the AmSouth Enhanced Market Fund. The approach divides the rest of each Portfolio's stock allocation between seven other AmSouth Equity Funds. The new strategy provides greater diversification by giving equal weighting to growth and value investment styles and providing greater exposure to mid-cap, small-cap and international stocks. These changes helped boost the Fund's returns during the final quarter of the period, as smaller stocks posted stronger gains than larger shares and the AmSouth International Equity Fund significantly outperformed its benchmark. /1/See Glossary of Terms for additional information. +International investing involves increased risk and volatility. 24 AMSOUTH AGGRESSIVE GROWTH PORTFOLIO [CHART] Value of a $10,000 Investment AmSouth Aggressive Growth Portfolio S&P 500 (Class A Shares)* Stock Index ------------------ ----------- 1/13/1999 $ 9,452 $10,000 1/31/1999 9,518 10,050 2/28/1999 9,253 9,689 3/31/1999 9,395 10,077 4/30/1999 9,565 10,467 5/31/1999 9,348 10,220 6/30/1999 9,773 10,787 7/31/1999 9,707 10,450 8/31/1999 9,612 10,399 9/30/1999 9,528 10,114 10/31/1999 9,813 10,754 11/30/1999 10,353 10,972 12/31/1999 11,051 11,619 1/31/2000 10,678 11,035 2/29/2000 10,870 10,826 3/31/2000 11,389 11,885 4/30/2000 11,162 11,527 5/31/2000 10,943 11,291 6/30/2000 11,235 11,569 7/31/2000 11,058 11,388 8/31/2000 11,568 12,096 9/30/2000 11,443 11,457 10/31/2000 11,495 11,409 11/30/2000 11,011 10,509 12/31/2000 11,217 10,561 1/31/2001 11,465 10,935 2/28/2001 10,872 9,938 3/31/2001 10,238 9,309 4/30/2001 10,939 10,032 5/31/2001 11,068 10,099 6/30/2001 10,842 9,853 7/31/2001 10,680 9,757 8/31/2001 10,227 9,146 9/30/2001 9,333 8,407 10/31/2001 9,602 8,568 11/30/2001 10,044 9,225 12/31/2001 10,156 9,306 1/31/2002 10,086 9,170 2/28/2002 9,878 8,993 3/31/2002 10,410 9,331 4/30/2002 9,994 8,765 5/31/2002 9,739 8,701 6/30/2002 8,987 8,081 7/31/2002 8,143 7,451 8/31/2002 8,201 7,500 9/30/2002 7,264 6,684 10/31/2002 7,808 7,273 11/30/2002 8,374 7,701 12/31/2002 7,889 7,249 1/31/2003 7,761 7,059 2/28/2003 7,542 6,953 3/31/2003 7,565 7,021 4/30/2003 8,144 7,599 5/31/2003 8,641 7,999 6/30/2003 8,745 8,102 7/31/2003 8,942 8,244 The chart reflects the performance of the Class A Shares. The performance of the Class B Shares and the Class I Shares will be greater or less than the line shown in the above chart based on the differences in the sales charges and the expenses paid by shareholders investing in Class A Shares, Class B Shares and Class I Shares. Average Annual Total Return ---------------------------------------------------------------------- As of July 31, 2003 Inception Date 1 Year Since Inception ---------------------------------------------------------------------- Class A Shares* 1/13/99 3.77% -2.43% Class B Shares** 1/27/99 4.02% -2.41% Class I Shares 1/28/99 9.97% -1.30% ---------------------------------------------------------------------- * Reflects maximum 5.50% sales charge. ** Reflects applicable contingent deferred sales charge (maximum 5.00%). The chart and table above compare a hypothetical $10,000 investment from 1/13/99 to 7/31/03 in the Class A Shares class versus a similar investment in the Fund's benchmark. The performance information presented above assumes the reinvestment of dividends and capital gains and does not reflect the deduction of taxes that a shareholder would pay on distributions and redemptions. The Portfolio's performance is compared to the S&P 500 Stock Index, an unmanaged index which is generally representative of the U.S. stock market as a whole. The index does not reflect the expenses associated with a mutual fund, such as investment management fees. The Portfolio's performance does reflect the deduction of fees for these value-added services. Investors cannot invest directly in an index, although they can invest in its underlying securities. During the period shown, the Advisor waived and/or reimbursed fees for various expenses. Had these waivers and/or reimbursements not been in effect, performance quoted would have been lower. The quoted returns reflect the performance from 1/13/99 to 3/12/00 of the ISG Aggressive Growth Portfolio, which was an open-end investment company and the predecessor fund to the AmSouth Aggressive Growth Portfolio. Effective 12/1/02, the Trust Shares were renamed Class I Shares. Past performance is no guarantee of future results. Investment return and net asset value will fluctuate, so that an investor's shares, when redeemed, may be worth more or less than their original cost. 25 AMSOUTH GROWTH PORTFOLIO [CHART] Value of a $10,000 Investment AmSouth Growth Portfolio S&P 500 (Class A Shares)* Stock Index ----------------- ----------- 2/11/1999 $ 9,448 $10,000 2/28/1999 9,286 10,050 3/31/1999 9,239 10,400 4/30/1999 9,429 10,803 5/31/1999 9,286 10,548 6/30/1999 9,605 11,133 7/31/1999 9,538 10,786 8/31/1999 9,414 10,732 9/30/1999 9,355 10,438 10/31/1999 9,566 11,099 11/30/1999 9,845 11,324 12/31/1999 10,284 11,991 1/31/2000 10,022 11,389 2/29/2000 10,100 11,173 3/31/2000 10,495 12,266 4/30/2000 10,291 11,897 5/31/2000 10,118 11,653 6/30/2000 10,375 11,940 7/31/2000 10,240 11,754 8/31/2000 10,706 12,484 9/30/2000 10,542 11,825 10/31/2000 10,537 11,775 11/30/2000 10,157 10,846 12/31/2000 10,345 10,899 1/31/2001 10,505 11,286 2/28/2001 10,125 10,257 3/31/2001 9,724 9,607 4/30/2001 10,150 10,354 5/31/2001 10,224 10,423 6/30/2001 10,076 10,170 7/31/2001 10,032 10,069 8/31/2001 9,729 9,439 9/30/2001 9,164 8,677 10/31/2001 9,384 8,842 11/30/2001 9,679 9,521 12/31/2001 9,748 9,604 1/31/2002 9,715 9,464 2/28/2002 9,608 9,281 3/31/2002 9,906 9,631 4/30/2002 9,680 9,047 5/31/2002 9,520 8,980 6/30/2002 9,027 8,340 7/31/2002 8,477 7,690 8/31/2002 8,563 7,740 9/30/2002 7,878 6,899 10/31/2002 8,331 7,506 11/30/2002 8,755 7,948 12/31/2002 8,420 7,481 1/31/2003 8,319 7,285 2/28/2003 8,179 7,176 3/31/2003 8,197 7,246 4/30/2003 8,667 7,843 5/31/2003 9,076 8,256 6/30/2003 9,150 8,362 7/31/2003 9,255 8,509 The chart reflects the performance of the Class A Shares. The performance of the Class B Shares and the Class I Shares will be greater or less than the line shown in the above chart based on the differences in the sales charges and the expenses paid by shareholders investing in Class A Shares, Class B Shares and Class I Shares. Average Annual Total Return ------------------------------------------------------------------------ As of July 31, 2003 Inception Date 1 Year Since Inception ------------------------------------------------------------------------ Class A Shares* 2/11/99 3.20% -1.72% Class B Shares** 2/15/99 3.39% -1.32% Class I Shares 2/1/99 9.19% -0.47% ------------------------------------------------------------------------ *Reflects maximum 5.50% sales charge. ** Reflects applicable contingent deferred sales charge (maximum 5.00%). The chart and table above compare a hypothetical $10,000 investment from 2/11/99 to 7/31/03 in the Class A Shares versus a similar investment in the Fund's benchmark. The performance information presented above assumes the reinvestment of dividends and capital gains and does not reflect the deduction of taxes that a shareholder would pay on distributions and redemptions. The Portfolio's performance is compared to the S&P 500 Stock Index, an unmanaged index which is generally representative of the U.S. stock market as a whole. The index does not reflect the expenses associated with a mutual fund, such as investment management fees. The Portfolio's performance does reflect the deduction of fees for these value-added services. Investors cannot invest directly in an index, although they can invest in its underlying securities. During the period shown, the Advisor waived and/or reimbursed fees for various expenses. Had these waivers and/or reimbursements not been in effect, performance quoted would have been lower. The quoted returns reflect the performance from 2/1/99 to 3/12/00 of the ISG Growth Portfolio, which was an open-end investment company and the predecessor fund to the AmSouth Growth Portfolio. Effective 12/1/02, the Trust Shares were renamed Class I Shares. Past performance is no guarantee of future results. Investment return and net asset value will fluctuate, so that an investor's shares, when redeemed, may be worth more or less than the original cost. 26 AMSOUTH GROWTH AND INCOME PORTFOLIO [CHART] Value of a $10,000 Investment AmSouth Growth and Merrill Lynch Income Portfolio Government/Corporate S&P 500 (Class A Shares)* Master Index Stock Index ----------------- -------------------- ----------- 3/08/1999 $ 9,448 $10,000 $10,000 3/31/1999 9,392 10,063 10,050 4/30/1999 9,495 10,096 10,387 5/31/1999 9,355 9,986 10,142 6/30/1999 9,508 9,956 10,705 7/31/1999 9,424 9,928 10,371 8/31/1999 9,377 9,920 10,319 9/30/1999 9,304 10,011 10,037 10/31/1999 9,473 10,031 10,672 11/30/1999 9,708 10,026 10,889 12/31/1999 9,940 9,976 11,530 1/31/2000 9,770 9,973 10,951 2/29/2000 9,751 10,093 10,743 3/31/2000 10,109 10,250 11,794 4/30/2000 10,066 10,196 11,440 5/31/2000 10,000 10,185 11,205 6/30/2000 10,212 10,387 11,481 7/31/2000 10,109 10,491 11,302 8/31/2000 10,422 10,639 12,003 9/30/2000 10,343 10,684 11,370 10/31/2000 10,368 10,754 11,322 11/30/2000 10,179 10,949 10,429 12/31/2000 10,359 11,167 10,480 1/31/2001 10,526 11,332 10,852 2/28/2001 10,248 11,455 9,862 3/31/2001 9,980 11,517 9,238 4/30/2001 10,303 11,419 9,956 5/31/2001 10,365 11,488 10,022 6/30/2001 10,260 11,539 9,778 7/31/2001 10,271 11,830 9,682 8/31/2001 10,061 11,964 9,076 9/30/2001 9,655 12,117 8,343 10/31/2001 9,870 12,407 8,502 11/30/2001 10,077 12,201 9,154 12/31/2001 10,122 12,108 9,235 1/31/2002 10,111 12,180 9,100 2/28/2002 10,034 12,288 8,924 3/31/2002 10,261 12,035 9,260 4/30/2002 10,112 12,270 8,699 5/31/2002 9,985 12,381 8,635 6/30/2002 9,607 12,488 8,019 7/31/2002 9,227 12,667 7,394 8/31/2002 9,322 12,943 7,442 9/30/2002 8,759 13,223 6,633 10/31/2002 9,158 13,100 7,217 11/30/2002 9,519 13,094 7,642 12/31/2002 9,258 13,435 7,194 1/31/2003 9,179 13,428 7,005 2/28/2003 9,073 13,664 6,900 3/31/2003 9,085 13,647 6,967 4/30/2003 9,502 13,782 7,541 5/31/2003 9,882 14,161 7,938 6/30/2003 9,950 14,108 8,040 7/31/2003 9,992 13,540 8,182 The chart reflects the performance of the Class A Shares. The performance of the Class B Shares and the Class I Shares will be greater or less than the line shown in the above chart based on the differences in the sales charges and the expenses paid by shareholders investing in Class A Shares, Class B Shares and Class I Shares. Average Annual Total Return ------------------------------------------------------------------ As of July 31, 2003 Inception Date 1 Year Since Inception ------------------------------------------------------------------ Class A Shares* 3/8/99 2.40% -0.02% Class B Shares* 1/27/99 2.45% 0.44% Class I Shares 2/8/99 8.32% 1.98% ------------------------------------------------------------------ *Reflects maximum 5.50% sales charge. **Reflects applicable contingent deferred sales charge (maximum 5.00%). The chart and table above compares hypothetical $10,000 investment from 3/8/99 to 7/31/03 in the Class A Shares versus a similar investment in the Fund's benchmarks. The performance information presented above assumes the reinvestment of dividends and capital gains and does not reflect the deduction of taxes that a shareholder would pay on distributions and redemptions. The Portfolio's performance is compared to the Merrill Lynch Government/Corporate Master Index, which is generally representative of the performance of corporate and U.S. Government bonds and the S&P 500 Stock Index, which is generally representative of the U.S. stock market as a whole. These indices are unmanaged and do not reflect the expenses associated with a mutual fund, such as investment management fees. The Portfolio's performance does reflect the deduction of fees for these value-added services. Investors cannot invest directly in an index, although they can invest in its underlying securities. During the period shown, the Advisor waived and/or reimbursed fees for various expenses. Had these waivers and/or reimbursements not been in effect, performance quoted would have been lower. The quoted returns reflect the performance from 1/27/99 to 3/12/00 of the ISG Growth & Income Portfolio, which was an open-end investment company and the predecessor fund to the AmSouth Growth and Income Portfolio. Effective 12/1/02, the Trust Shares were renamed Class I Shares. Past performance is no guarantee of future results. Investment return and net asset value will fluctuate, so that an investor's shares, when redeemed, may be worth more or less than original cost. 27 AMSOUTH MODERATE GROWTH AND INCOME PORTFOLIO [CHART] Value of a $10,000 Investment AmSouth Moderate Merrill Lynch Growth and Income Portfolio Government/Corporate S&P 500 (Class A Shares)* Master Index Stock Index --------------------------- -------------------- ----------- 2/9/1999 $ 9,454 $10,000 $10,000 2/28/1999 9,473 9,748 10,050 3/31/1999 9,513 9,809 10,400 4/30/1999 9,561 9,842 10,803 5/31/1999 9,446 9,735 10,548 6/30/1999 9,525 9,705 11,133 7/31/1999 9,457 9,677 10,786 8/31/1999 9,428 9,670 10,732 9/30/1999 9,399 9,759 10,438 10/31/1999 9,515 9,778 11,099 11/30/1999 9,660 9,774 11,324 12/31/1999 9,772 9,724 11,991 1/31/2000 9,654 9,722 11,389 2/29/2000 9,625 9,839 11,173 3/31/2000 9,932 9,992 12,266 4/30/2000 9,907 9,939 11,897 5/31/2000 9,873 9,928 11,653 6/30/2000 10,031 10,126 11,940 7/31/2000 10,009 10,227 11,754 8/31/2000 10,268 10,371 12,484 9/30/2000 10,235 10,415 11,825 10/31/2000 10,273 10,483 11,775 11/30/2000 10,186 10,673 10,846 12/31/2000 10,343 10,886 10,899 1/31/2001 10,545 11,047 11,286 2/28/2001 10,342 11,166 10,257 3/31/2001 10,145 11,227 9,607 4/30/2001 10,404 11,131 10,354 5/31/2001 10,492 11,199 10,423 6/30/2001 10,420 11,248 10,170 7/31/2001 10,500 11,532 10,069 8/31/2001 10,334 11,662 9,439 9/30/2001 10,039 11,812 8,677 10/31/2001 10,274 12,095 8,842 11/30/2001 10,446 11,894 9,521 12/31/2001 10,471 11,803 9,604 1/31/2002 10,482 11,873 9,464 2/28/2002 10,416 11,978 9,281 3/31/2002 10,585 11,732 9,631 4/30/2002 10,427 11,961 9,047 5/31/2002 10,324 12,069 8,980 6/30/2002 9,987 12,173 8,340 7/31/2002 9,681 12,348 7,690 8/31/2002 9,798 12,617 7,740 9/30/2002 9,308 12,889 6,899 10/31/2002 9,690 12,770 7,506 11/30/2002 10,029 12,764 7,948 12/31/2002 9,820 13,096 7,481 1/31/2003 9,751 13,090 7,285 2/28/2003 9,668 13,320 7,176 3/31/2003 9,683 13,303 7,246 4/30/2003 10,044 13,435 7,843 5/31/2003 10,391 13,804 8,256 6/30/2003 10,452 13,753 8,362 7/31/2003 10,440 13,199 8,509 The chart reflects the performance of the Class A Shares. The performance of the Class B Shares and the Class I Shares will be greater or less than the line shown in the above chart based on the differences in the sales charges and the expenses paid by shareholders investing in Class A Shares, Class B Shares and Class I Shares. Average Annual Total Return ---------------------------------------------------------------------- As of July 31, 2003 Inception Date 1 Year Since Inception ---------------------------------------------------------------------- Class A Shares* 2/9/99 1.91% 0.97% Class B Shares** 1/28/99 2.02% 0.84% Class I Shares 2/10/99 7.87% 2.37% ---------------------------------------------------------------------- *Reflects maximum 5.50% sales charge. **Reflects applicable contingent deferred sales charge (maximum 5.00%). The chart and table above compare a hypothetical $10,000 investment from 2/9/99 to 7/31/03 in the Class A Shares versus a similar investment in the Fund's benchmarks. The performance information presented above assumes the reinvestment of dividends and capital gains and does not reflect the deduction of taxes that a shareholder would pay on distributions and redemptions. The Portfolio's performance is compared to the Merrill Lynch Government/Corporate Master Index, which is generally representative of the performance of corporate and U.S. Government bonds, and the S&P 500 Stock Index, which is generally representative of the U.S. stock market as a whole. These indices are unmanaged and do not reflect the expenses associated with a mutual fund, such as investment management fees. The Portfolio's performance does reflect the deduction of fees for these value-added services. Investors cannot invest directly in an index, although they can invest in its underlying securities. During the period shown, the Advisor waived and/or reimbursed fees for various expenses. Had these waivers and/or reimbursements not been in effect, performance quoted would have been lower. The quoted returns reflect the performance from 1/28/99 to 3/12/00 of the ISG Moderate Growth & Income Portfolio, which was an open-end investment company and the predecessor fund to the AmSouth Moderate Growth and Income Portfolio. Effective 12/1/02, the Trust Shares were renamed Class I Shares. Past performance is no guarantee of future results. Investment return and net asset value will fluctuate, so that an investor's shares, when redeemed, may be worth more or less than the original cost. 28 [THIS PAGE INTENTIONALLY LEFT BLANK] 29 AMSOUTH GOVERNMENT INCOME FUND PORTFOLIO MANAGERS [GRAPHIC] John P. Boston, CFA Senior Vice President PORTFOLIO MANAGERS' PERSPECTIVE "The AmSouth Government Income Fund is more suitable John Mark McKenzie for investors who seek income but also demand the safety Senior Vice President of U.S. Government securities. Although we attempt to consistently generate a high level of income, investors should AmSouth Bank be aware that yields and principal values vary and that the AmSouth Asset Management, Inc. Fund is not guaranteed by the U.S. Government." John Boston also manages the AmSouth Limited Term Bond Fund, and co-manages the AmSouth Bond Fund. He has 14 years of experience as a fixed income manager. He holds a bachelor's degree in finance and political science and is a Chartered Financial Analyst. John Mark McKenzie has been in investment management since 1981. He also manages the five AmSouth money market funds. He holds a bachelor's degree in banking and finance from the University of Mississippi, and earned his law degree from the University of Mississippi School of Law.
[GRAPHIC] Q&A Q. How did the Fund perform during the 12-month period ended July 31, 2003? A. The Fund returned 3.47% (Class A Shares at NAV). In comparison, the Fund's benchmark, the Lehman Brothers Mortgage Index gained 2.56%. The Lipper U.S. Mortgage Funds Average/1/ gained 2.32%. Q. What factors affected the Fund's performance during the period? A. The Fed lowered short-term interest rates twice, for a total reduction of 75 basis points. The Fed's easing policy drove down short-term yields to very low levels, causing bond prices to rise. That environment boosted the Fund's returns through mid-June. Yields rose late in the period, as strengthening economic data caused investors to sell bonds. Rising yields hurt fixed-income securities' absolute returns. This Fund invests in mortgage pass-through securities, Treasury notes and agency issues. Mortgage-backed securities had significant pre-payments during the period, as mortgage-holders took advantage of historically low rates to refinance their home loans. The Fund held an underweight position in mortgage-backed securities, which helped to boost relative returns in that environment. The Fund held an overweight position in agency issues. That approach proved beneficial, as agency securities outperformed Treasuries and mortgage-backed securities. Most mortgage funds held shorter durations during the period, but we believe the longer duration on the Fund helped performance in a falling-rate environment. /1/See Glossary of Terms for additional information. 30 AMSOUTH GOVERNMENT INCOME FUND [CHART] Value of a $10,000 Investment AmSouth Government Income Fund Lehman Brothers (Class A Shares)* Mortgage Index ----------------- -------------- 10/31/1993 $ 9,573 $10,029 11/30/1993 9,549 10,009 12/31/1993 9,598 10,090 1/31/1994 9,656 10,190 2/28/1994 9,597 10,119 3/31/1994 9,460 9,855 4/30/1994 9,411 9,783 5/31/1994 9,431 9,822 6/30/1994 9,461 9,800 7/31/1994 9,572 9,996 8/31/1994 9,603 10,028 9/30/1994 9,552 9,886 10/31/1994 9,552 9,880 11/30/1994 9,511 9,849 12/31/1994 9,562 9,928 1/31/1995 9,720 10,140 2/28/1995 9,904 10,399 3/31/1995 9,926 10,448 4/30/1995 10,027 10,596 5/31/1995 10,309 10,930 6/30/1995 10,376 10,992 7/31/1995 10,379 11,011 8/31/1995 10,476 11,125 9/30/1995 10,558 11,223 10/31/1995 10,672 11,323 11/30/1995 10,807 11,452 12/31/1995 10,936 11,595 1/31/1996 11,000 11,682 2/29/1996 10,864 11,586 3/31/1996 10,820 11,544 4/30/1996 10,767 11,511 5/31/1996 10,739 11,478 6/30/1996 10,847 11,636 7/31/1996 10,888 11,680 8/31/1996 10,909 11,680 9/30/1996 11,072 11,875 10/31/1996 11,308 12,107 11/30/1996 11,494 12,280 12/31/1996 11,381 12,217 1/31/1997 11,428 12,307 2/28/1997 11,446 12,348 3/31/1997 11,339 12,232 4/30/1997 11,494 12,426 5/31/1997 11,598 12,548 6/30/1997 11,737 12,695 7/31/1997 12,001 12,933 8/31/1997 11,937 12,902 9/30/1997 12,103 13,066 10/31/1997 12,252 13,211 11/30/1997 12,309 13,255 12/31/1997 12,445 13,375 1/31/1998 12,580 13,508 2/28/1998 12,600 13,536 3/31/1998 12,643 13,593 4/30/1998 12,691 13,670 5/31/1998 12,787 13,761 6/30/1998 12,861 13,827 7/31/1998 12,910 13,897 8/31/1998 13,056 14,024 9/30/1998 13,273 14,193 10/31/1998 13,253 14,175 11/30/1998 13,314 14,246 12/31/1998 13,334 14,307 1/31/1999 13,417 14,409 2/28/1999 13,284 14,351 3/31/1999 13,343 14,447 4/30/1999 13,400 14,514 5/31/1999 13,334 14,432 6/30/1999 13,291 14,382 7/31/1999 13,248 14,284 8/31/1999 13,226 14,284 9/30/1999 13,381 14,515 10/31/1999 13,436 14,600 11/30/1999 13,454 14,607 12/31/1999 13,418 14,572 1/31/2000 13,389 14,445 2/29/2000 13,527 14,613 3/31/2000 13,716 14,772 4/30/2000 13,664 14,782 5/31/2000 13,655 14,790 6/30/2000 13,877 15,106 7/31/2000 13,983 15,203 8/31/2000 14,178 15,434 9/30/2000 14,242 15,594 10/31/2000 14,365 15,707 11/30/2000 14,592 15,942 12/31/2000 14,850 16,199 1/31/2001 15,020 16,452 2/28/2001 15,145 16,545 3/31/2001 15,211 16,641 4/30/2001 15,156 16,665 5/31/2001 15,223 16,775 6/30/2001 15,259 16,810 7/31/2001 15,556 17,109 8/31/2001 15,685 17,260 9/30/2001 15,938 17,519 10/31/2001 16,240 17,760 11/30/2001 16,011 17,597 12/31/2001 15,891 17,530 1/31/2002 15,976 17,693 2/28/2002 16,108 17,895 3/31/2002 15,860 17,705 4/30/2002 16,153 18,040 5/31/2002 16,239 18,171 6/30/2002 16,389 18,321 7/31/2002 16,638 18,529 8/31/2002 16,871 18,676 9/30/2002 17,121 18,808 10/31/2002 17,093 18,880 11/30/2002 17,014 18,867 12/31/2002 17,274 19,063 1/31/2003 17,249 19,109 2/28/2003 17,406 19,237 3/31/2003 17,396 19,238 4/30/2003 17,436 19,319 5/31/2003 17,595 19,335 6/30/2003 17,584 19,366 7/31/2003 17,215 19,004 The chart reflects the performance of the Class A Shares. The performance of the Class B Shares and the Class I Shares will be greater or less than the line shown in the above chart based on the differences in the sales charges and the expenses paid by shareholders investing in Class A Shares, Class B Shares and Class I Shares. Average Annual Total Return --------------------------------------------------------------------------- As of July 31, 2003 Inception Date 1 Year 5 Year Since Inception --------------------------------------------------------------------------- Class A Shares* 10/1/93 -0.69% 5.07% 5.68% Class B Shares** 3/13/00/1/ -2.29% 4.72% 5.16% Class I Shares 9/2/97/1/ 3.62% 6.09% 6.20% --------------------------------------------------------------------------- * Reflects maximum 4.00% sales charge. ** Reflects applicable contingent deferred sales charge (maximum 5.00%). The chart and table above compare a hypothetical $10,000 investment from 10/1/93 to 7/31/03 in the indicated share class versus a similar investment in the Fund's benchmark. The performance information presented above assumes the reinvestment of dividends and capital gains and does not reflect the deduction of taxes that a shareholder would pay on distributions and redemptions. 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 fees associated with a mutual fund, such as investment management fees. The Fund's performance does reflect the deduction of fees for these value-added services. Investors cannot invest directly in an index, although they can invest in its underlying securities. During the period shown, the Advisor waived and/or reimbursed fees for various expenses. Had these waivers and/or reimbursements not been in effect, performance quoted would have been lower. /1/Performance for the Class B and Class I Shares, which commenced operations on 3/13/00 and 9/2/97, respectively, are based on the historical performance of the Class A Shares (without sales charge) prior to that date. The historical performance for the Class B Shares has been adjusted to reflect the higher 12b-1 fees and the contingent deferred sales charge (CDSC). Effective 12/1/02, the Trust Shares were renamed Class I Shares. Past performance is no guarantee of future results. Investment return and net asset value will fluctuate, so that an investor's shares, when redeemed, may be worth more or less than the original cost. 31 AMSOUTH LIMITED TERM BOND FUND PORTFOLIO MANAGER [GRAPHIC] John P. Boston, CFA Senior Vice President PORTFOLIO MANAGER'S PERSPECTIVE "The AmSouth Limited Term Bond Fund was designed to AmSouth Bank fill the gap between money market funds and long-term AmSouth Asset bond funds. For investors looking for a diversified bond fund, Management, Inc. this Fund represents the first step out on the 'risk/return' spectrum from the money market arena." John Boston manages the AmSouth Limited Term Bond Fund and co-manages both the AmSouth Government Income Fund and the AmSouth Bond Fund. He has 14 years of experience as a fixed income manager. He holds a bachelor's degree in finance and political science and is a Chartered Financial Analyst.
[GRAPHIC] Q&A Q. How did the Fund perform during the 12-month period ended July 31, 2003? A. The Fund's total return was 3.52% (Class A Shares at NAV). In comparison, the Fund's benchmark the Merrill Lynch 1-5-Year Government/Corporate Bond Index gained 5.05%. The Lipper Short-Intermediate Investment Grade Debt Funds Average/1/ gained 4.83%. Q. What factors affected the Fund's performance? A. The Fed cut short-term interest rates twice, for a total reduction of 0.75 percentage points. Those rate cuts pushed down yields on short-term bonds during most of the period, pushing up bond prices and boosting the Fund's absolute returns. Yields rose slightly toward the end of the period, reducing the Fund's gains. The Fund's returns relative to the benchmark benefited from its overweight stake in corporate bonds throughout the period, as corporate bonds outperformed government issues. We kept the Fund's duration shorter than that of its benchmark, in anticipation of an economic rebound that we felt could lead to higher interest rates. That strategy caused the Fund to lag its benchmark as short-term rates fell during most of the period then helped the Fund regain some ground when yields rose. On balance, the Fund's short duration reduced its returns relative to the benchmark. /1/See Glossary of Terms for additional information. 32 AMSOUTH LIMITED TERM BOND FUND [CHART] Value of a $10,000 Investment AmSouth Limited Merrill Lynch 1-5-Year Term Bond Fund Government/Corporate (Class A Shares)* Bond Index ----------------- ---------------------- 7/31/1993 $ 9,600 $10,000 8/31/1993 9,726 10,121 9/30/1993 9,757 10,158 10/31/1993 9,762 10,180 11/30/1993 9,739 10,162 12/31/1993 9,780 10,204 1/31/1994 9,875 10,290 2/28/1994 9,777 10,188 3/31/1994 9,643 10,095 4/30/1994 9,571 10,036 5/31/1994 9,565 10,050 6/30/1994 9,564 10,071 7/31/1994 9,675 10,178 8/31/1994 9,699 10,214 9/30/1994 9,639 10,161 10/31/1994 9,644 10,175 11/30/1994 9,593 10,121 12/31/1994 9,604 10,148 1/31/1995 9,746 10,302 2/28/1995 9,918 10,478 3/31/1995 9,986 10,541 4/30/1995 10,085 10,650 5/31/1995 10,331 10,899 6/30/1995 10,388 10,965 7/31/1995 10,414 10,993 8/31/1995 10,485 11,069 9/30/1995 10,543 11,132 10/31/1995 10,632 11,241 11/30/1995 10,740 11,361 12/31/1995 10,825 11,463 1/31/1996 10,911 11,565 2/29/1996 10,839 11,486 3/31/1996 10,793 11,453 4/30/1996 10,780 11,441 5/31/1996 10,789 11,449 6/30/1996 10,864 11,548 7/31/1996 10,905 11,589 8/31/1996 10,918 11,617 9/30/1996 11,019 11,744 10/31/1996 11,148 11,907 11/30/1996 11,245 12,023 12/31/1996 11,225 11,992 1/31/1997 11,264 12,046 2/28/1997 11,279 12,066 3/31/1997 11,220 12,038 4/30/1997 11,334 12,154 5/31/1997 11,410 12,242 6/30/1997 11,494 12,338 7/31/1997 11,695 12,519 8/31/1997 11,648 12,502 9/30/1997 11,774 12,618 10/31/1997 11,887 12,731 11/30/1997 11,902 12,756 12/31/1997 11,988 12,851 1/31/1998 12,138 13,001 2/28/1998 12,120 12,999 3/31/1998 12,150 13,049 4/30/1998 12,205 13,111 5/31/1998 12,283 13,191 6/30/1998 12,354 13,267 7/31/1998 12,390 13,326 8/31/1998 12,587 13,519 9/30/1998 12,809 13,762 10/31/1998 12,816 13,806 11/30/1998 12,810 13,787 12/31/1998 12,843 13,838 1/31/1999 12,892 13,908 2/28/1999 12,786 13,782 3/31/1999 12,880 13,895 4/30/1999 12,900 13,941 5/31/1999 12,835 13,887 6/30/1999 12,869 13,926 7/31/1999 12,887 13,942 8/31/1999 12,914 13,970 9/30/1999 12,998 14,083 10/31/1999 13,007 14,116 11/30/1999 13,036 14,138 12/31/1999 13,018 14,141 1/31/2000 13,005 14,109 2/29/2000 13,098 14,210 3/31/2000 13,194 14,321 4/30/2000 13,200 14,330 5/31/2000 13,236 14,372 6/30/2000 13,402 14,563 7/31/2000 13,479 14,666 8/31/2000 13,587 14,802 9/30/2000 13,700 14,936 10/31/2000 13,740 15,003 11/30/2000 13,888 15,176 12/31/2000 14,088 15,397 1/31/2001 14,290 15,619 2/28/2001 14,396 15,741 3/31/2001 14,501 15,885 4/30/2001 14,531 15,895 5/31/2001 14,595 15,989 6/30/2001 14,626 16,049 7/31/2001 14,843 16,305 8/31/2001 14,935 16,424 9/30/2001 15,154 16,718 10/31/2001 15,305 16,916 11/30/2001 15,232 16,815 12/31/2001 15,206 16,779 1/31/2002 15,238 16,827 2/28/2002 15,348 16,931 3/31/2002 15,208 16,761 4/30/2002 15,398 16,993 5/31/2002 15,493 17,124 6/30/2002 15,625 17,272 7/31/2002 15,799 17,492 8/31/2002 15,910 17,641 9/30/2002 16,070 17,866 10/31/2002 16,058 17,865 11/30/2002 16,012 17,836 12/31/2002 16,192 18,106 1/31/2003 16,211 18,115 2/28/2003 16,333 18,275 3/31/2003 16,363 18,311 4/30/2003 16,379 18,393 5/31/2003 16,487 18,589 6/30/2003 16,509 18,614 7/31/2003 16,356 18,375 The chart reflects the performance of the Class A Shares. The performance of the Class B Shares and the Class I Shares will be greater or less than the line shown in the above chart based on the differences in the sales charges and the expenses paid by shareholders investing in Class A Shares, Class B Shares and Class I Shares. Average Annual Total Return -------------------------------------------------------------------------------- As of July 31, 2003 Inception Date 1 Year 5 Year 10 Year -------------------------------------------------------------------------------- Class A Shares* 2/1/89 -0.66% 4.86% 5.04% Class B Shares** 1/21/99/1/ -2.21% 4.54% 4.53% Class I Shares 9/2/97/1/ 3.76% 5.86% 5.56% -------------------------------------------------------------------------------- *Reflects maximum 4.00% sales charge. **Reflects applicable contingent deferred sales charge (maximum 5.00%). The chart and table above compare a hypothetical $10,000 investment from 7/31/93 to 7/31/03 in the indicated share class versus a similar investment in the Fund's benchmark. The performance information presented above assumes the reinvestment of dividends and capital gains and does not reflect the deduction of taxes that a shareholder would pay on distributions and redemptions. The performance of the AmSouth Limited Term Bond Fund is measured against the Merrill Lynch 1-5-Year Government/Corporate Bond 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 fees associated with a mutual fund, such as investment management fees. The Fund's performance does reflect the deduction of fees for these value-added services. Investors cannot invest directly in an index, although they can invest in its underlying securities. During the period shown, the Advisor waived and/or reimbursed fees for various expenses. Had these waivers and/or reimbursements not been in effect, performance quoted would have been lower. /1/Performance for the Class B and Class I Shares, which commenced operations on 1/21/99 and 9/2/97, respectively, are based on the historical performance of the Class A Shares (without sales charge) prior to that date. The historical performance for the Class B Shares has been adjusted to reflect the higher 12b-1 fees and the contingent deferred sales charge (CDSC). Effective 12/1/02, the Trust Shares were renamed Class I Shares. Past performance is no guarantee of future results. Investment return and net asset value will fluctuate, so that an investor's shares, when redeemed, may be worth more or less than the original cost. 33 AMSOUTH BOND FUND PORTFOLIO MANAGERS [GRAPHIC] Brian B. Sullivan, CFA PORTFOLIO MANAGERS' PERSPECTIVE Chief Fixed Investment Officer "The AmSouth Bond Fund seeks to take advantage of changes in relative values in the bond market to pursue John P. Boston strong returns. We begin with a study of the economic, Senior Vice President political and financial terrain to determine an outlook for the various sectors of the bond market. From this outlook AmSouth Bank the relative value of longer or shorter bonds, corporate AmSouth Asset Management, Inc. or Government bonds, and callable or non-callable bonds is determined. Through the active use of high-quality Brian Sullivan has more than 17 years of fixed investments, we strive to obtain excellent long-term returns." income investment management experience and holds an MBA in finance and a bachelor's degree in economics. John Boston has 14 years of investment experience as a fixed income manager. He holds a bachelor's degree in finance and political science.
[GRAPHIC] Q&A Q. How did the Fund perform during the 12-month period ended July 31, 2003? A. The Fund returned 5.04% (Class A Shares at NAV). In comparison, the Fund's benchmark the Lehman Brothers Government/Credit Bond Index gained 7.12%. The Lipper Corporate Debt Funds A Rated Average/1/ gained 6.04%. Q. What factors affected the performance of the Fund? A. The Fund's absolute returns during the first three-quarters of the period benefited from declining interest rates, which pushed down bonds' yields and increased their prices. However, yields during the final three months of the period rose to roughly where they began the period, and the Fund's absolute returns suffered from that reversal. Low-quality bonds were the best-performing sector of the bond market. The Fund's benchmark includes BBB-rated bonds, whereas the Fund itself only purchases bonds with credit ratings of A or better. That difference made it difficult for the Fund to keep pace with the benchmark. The Fund's relative returns benefited from our decision to over-weight corporate bonds, however, since those issues outperformed government bonds. We positioned the Fund's duration shorter than that of the benchmark in anticipation of rising interest rates. The Fund began the period with a duration 0.9 years shorter than the benchmark, and ended the period with a duration 1.1 years shorter than the benchmark. That strategy caused the Fund's returns to lag the benchmark while yields fell, but helped the Fund to outperform the benchmark when yields rose. That strategy did not have a large impact on the Fund's relative returns for the 12-month period as a whole.++ /1/See Glossary of Terms for additional information. ++ The Fund's portfolio composition is subject to change. 34 AMSOUTH BOND FUND [CHART] Value of a $10,000 Investment Lehman Brothers AmSouth Bond Fund Government/Credit (Class A Shares)* Bond Index ----------------- ----------------- 7/31/1993 $ 9,600 $10,000 8/31/1993 9,770 10,230 9/30/1993 9,813 10,265 10/31/1993 9,830 10,307 11/30/1993 9,770 10,191 12/31/1993 9,801 10,235 1/31/1994 9,924 10,389 2/28/1994 9,763 10,163 3/31/1994 9,566 9,915 4/30/1994 9,484 9,833 5/31/1994 9,491 9,814 6/30/1994 9,462 9,791 7/31/1994 9,622 9,987 8/31/1994 9,638 9,991 9/30/1994 9,480 9,840 10/31/1994 9,460 9,829 11/30/1994 9,430 9,811 12/31/1994 9,484 9,876 1/31/1995 9,651 10,066 2/28/1995 9,889 10,299 3/31/1995 9,939 10,368 4/30/1995 10,084 10,513 5/31/1995 10,509 10,953 6/30/1995 10,588 11,041 7/31/1995 10,551 10,998 8/31/1995 10,670 11,139 9/30/1995 10,765 11,252 10/31/1995 10,918 11,418 11/30/1995 11,090 11,606 12/31/1995 11,230 11,777 1/31/1996 11,307 11,850 2/29/1996 11,103 11,598 3/31/1996 10,980 11,501 4/30/1996 10,879 11,422 5/31/1996 10,851 11,403 6/30/1996 10,988 11,555 7/31/1996 11,012 11,582 8/31/1996 10,958 11,554 9/30/1996 11,158 11,759 10/31/1996 11,449 12,033 11/30/1996 11,678 12,255 12/31/1996 11,517 12,118 1/31/1997 11,511 12,133 2/28/1997 11,521 12,158 3/31/1997 11,347 12,014 4/30/1997 11,532 12,190 5/31/1997 11,635 12,303 6/30/1997 11,773 12,451 7/31/1997 12,165 12,832 8/31/1997 12,000 12,688 9/30/1997 12,206 12,887 10/31/1997 12,410 13,094 11/30/1997 12,460 13,163 12/31/1997 12,585 13,301 1/31/1998 12,769 13,488 2/28/1998 12,719 13,461 3/31/1998 12,762 13,502 4/30/1998 12,808 13,570 5/31/1998 12,934 13,716 6/30/1998 13,055 13,856 7/31/1998 13,071 13,867 8/31/1998 13,375 14,138 9/30/1998 13,769 14,542 10/31/1998 13,722 14,439 11/30/1998 13,706 14,525 12/31/1998 13,741 14,561 1/31/1999 13,797 14,664 2/28/1999 13,506 14,316 3/31/1999 13,578 14,387 4/30/1999 13,600 14,423 5/31/1999 13,449 14,274 6/30/1999 13,425 14,229 7/31/1999 13,409 14,190 8/31/1999 13,377 14,178 9/30/1999 13,487 14,306 10/31/1999 13,504 14,343 11/30/1999 13,485 14,335 12/31/1999 13,389 14,248 1/31/2000 13,377 14,244 2/29/2000 13,577 14,423 3/31/2000 13,807 14,631 4/30/2000 13,735 14,560 5/31/2000 13,714 14,547 6/30/2000 13,983 14,844 7/31/2000 14,094 15,001 8/31/2000 14,290 15,213 9/30/2000 14,364 15,270 10/31/2000 14,443 15,366 11/30/2000 14,701 15,628 12/31/2000 15,004 15,937 1/31/2001 15,183 16,204 2/28/2001 15,320 16,371 3/31/2001 15,413 16,446 4/30/2001 15,263 16,323 5/31/2001 15,315 16,417 6/30/2001 15,386 16,496 7/31/2001 15,733 16,907 8/31/2001 15,898 17,124 9/30/2001 16,160 17,281 10/31/2001 16,468 17,720 11/30/2001 16,225 17,429 12/31/2001 16,115 17,292 1/31/2002 16,193 17,419 2/28/2002 16,340 17,567 3/31/2002 16,028 17,210 4/30/2002 16,386 17,544 5/31/2002 16,503 17,706 6/30/2002 16,717 17,856 7/31/2002 17,021 18,071 8/31/2002 17,298 18,476 9/30/2002 17,680 18,874 10/31/2002 17,540 18,693 11/30/2002 17,447 18,704 12/31/2002 17,833 19,200 1/31/2003 17,803 19,199 2/28/2003 18,064 19,541 3/31/2003 18,039 19,516 4/30/2003 18,118 19,724 5/31/2003 18,461 20,285 6/30/2003 18,426 20,204 7/31/2003 17,879 19,357 The chart reflects the performance of the Class A Shares. The performance of the Class B Shares and the Class I Shares will be greater or less than the line shown in the above chart based on the differences in the sales charges and the expensespaid by shareholders investing in Class A Shares, Class B Shares and Class I Shares. Average Annual Total Return --------------------------------------------------------------------------- As of July 31, 2003 Inception Date 1 Year 5 Year 10 Year --------------------------------------------------------------------------- Class A Shares* 12/1/88 0.81% 5.60% 5.98% Class B Shares** 9/16/97/1/ -0.68% 5.30% 5.59% Class I Shares 9/2/97/1/ 5.19% 6.60% 6.50% --------------------------------------------------------------------------- *Reflects maximum 4.00% sales charge. **Reflects applicable contingent deferred sales charge (maximum 5.00%). The chart and table above compare a hypothetical $10,000 investment from 7/31/93 to 7/31/03 in the indicated share class versus a similar investment in the Fund's benchmark. The performance information presented above assumes the reinvestment of dividends and capital gains and does not reflect the deduction of taxes that a shareholder would pay on distributions and redemptions. The performance of the AmSouth Bond Fund is measured against the Lehman Brothers Government/Credit Bond Index, an unmanaged broad-based index representative of the total return of long-term government and corporate bonds. The index does not reflect the deduction of fees associated with a mutual fund, such as investment management fees. The Fund's performance does reflect the deduction of fees for these value-added services. Investors cannot invest directly in an index, although they can invest in its underlying securities. During the period shown, the Advisor waived and/or reimbursed fees for various expenses. Had these waivers and/or reimbursements not been in effect, performance quoted would have been lower. 1Performance for the Class B and Class I Shares, which commenced operations on 9/16/97 and 9/2/97, respectively, are based on the historical performance of the Class A Shares (without sales charge) prior to that date. The historical performance for the Class B Shares has been adjusted to reflect the higher 12b-1 fees and the contingent deferred sales charge (CDSC). Effective 12/1/02, the Trust Shares were renamed Class I Shares. Past performance is no guarantee of future results. Investment return and net asset value will fluctuate, so that an investor's shares, when redeemed, may be worth more or less than the original cost. 35 AMSOUTH MUNICIPAL BOND FUND+ PORTFOLIO MANAGER [GRAPHIC] Dorothy E. Thomas, CFA Senior Vice President PORTFOLIO MANAGER'S PERSPECTIVE "With the AmSouth Municipal Bond Fund, we concentrate AmSouth Bank on high-quality municipal bonds--those in the top three AmSouth Asset Management, Inc. rating classes, or of comparable quality. As with other AmSouth bond funds, we manage our bond portfolios to Dorothy Thomas has more than 20 years of take advantage of changes in market interest rates over the experience as an investment portfolio manager. full market cycle." She holds an MBA and a BA in economics and serves as manager of tax-exempt fixed income investments for AmSouth. She is also the portfolio manager for the AmSouth Florida Tax-Exempt Fund and the AmSouth Tennessee Tax-Exempt Fund.
[GRAPHIC] Q&A Q. How did the Fund perform during the 12-month period ended July 31, 2003? A. The Fund delivered a total return of 2.96% (Class A Shares at NAV) during the period. In comparison, the Fund's benchmark the Merrill Lynch 1-12-Year Municipal Bond Index gained 3.35%. The Lipper General Municipal Debt Funds Average/1/ gained 2.38%. Q. What factors affected the Fund during the period? A. The Fed lowered short-term interest rates in November and June, for a total reduction of 0.75 percentage points. Investors' anticipation of those cuts, combined with weak economic data, caused bond yields to fall during most of the period. Bond prices rose as a result, boosting the Fund's absolute returns. Yields then rose sharply from the middle of June through the end of the period, reducing the Fund's gains. We positioned the Fund defensively throughout the period, maintaining a portfolio of high-quality securities with an average duration shorter than that of the benchmark. We adopted that strategy because we expected an economic recovery to cause an increase in bond yields. That approach caused returns to lag the benchmark during most of the period, as yields fell and lower-quality bonds led the market. However, as rates rose sharply, the Fund's defensive posture helped to boost its relative returns during the final seven weeks of the period. /1/See Glossary of Terms for additional information. + The Fund's income may be subject to certain state and local taxes and, depending on one's tax status, the federal alternative minimum tax. 36 AMSOUTH MUNICIPAL BOND FUND+ [CHART] Value of a $10,000 Investment AmSouth Municipal Merrill Lynch Bond Fund 1-12-Year Municipal (Class A Shares)* Bond Index ---------------- ------------------- 7/31/1993 $ 9,596 $10,000 8/31/1993 9,708 10,148 9/30/1993 9,798 10,228 10/31/1993 9,820 10,307 11/30/1993 9,764 10,216 12/31/1993 9,899 10,377 1/31/1994 9,944 10,480 2/28/1994 9,798 10,248 3/31/1994 9,551 9,975 4/30/1994 9,585 10,018 5/31/1994 9,607 10,063 6/30/1994 9,641 10,054 7/31/1994 9,764 10,269 8/31/1994 9,787 10,295 9/30/1994 9,719 10,178 10/31/1994 9,652 10,110 11/30/1994 9,540 9,983 12/31/1994 9,641 10,114 1/31/1995 9,719 10,262 2/28/1995 9,910 10,537 3/31/1995 10,000 10,588 4/30/1995 10,034 10,630 5/31/1995 10,213 10,935 6/30/1995 10,224 10,914 7/31/1995 10,348 10,998 8/31/1995 10,415 11,114 9/30/1995 10,426 11,124 10/31/1995 10,550 11,217 11/30/1995 10,606 11,403 12/31/1995 10,640 11,467 1/31/1996 10,685 11,607 2/29/1996 10,718 11,496 3/31/1996 10,606 11,488 4/30/1996 10,584 11,489 5/31/1996 10,572 11,490 6/30/1996 10,640 11,557 7/31/1996 10,718 11,666 8/31/1996 10,763 11,676 9/30/1996 10,808 11,781 10/31/1996 10,898 11,894 11/30/1996 11,033 12,044 12/31/1996 11,010 12,028 1/31/1997 10,988 12,066 2/28/1997 11,066 12,150 3/31/1997 10,943 12,023 4/30/1997 10,965 12,071 5/31/1997 11,100 12,243 6/30/1997 11,223 12,368 7/31/1997 11,432 12,643 8/31/1997 11,335 12,541 9/30/1997 11,468 12,683 10/31/1997 11,511 12,734 11/30/1997 11,534 12,786 12/31/1997 11,690 12,953 1/31/1998 11,786 13,061 2/28/1998 11,775 13,083 3/31/1998 11,764 13,100 4/30/1998 11,698 13,040 5/31/1998 11,876 13,230 6/30/1998 11,906 13,266 7/31/1998 11,924 13,308 8/31/1998 12,126 13,513 9/30/1998 12,263 13,659 10/31/1998 12,269 13,676 11/30/1998 12,283 13,696 12/31/1998 12,324 13,765 1/31/1999 12,493 13,956 2/28/1999 12,396 13,872 3/31/1999 12,371 13,861 4/30/1999 12,411 13,900 5/31/1999 12,313 13,823 6/30/1999 12,097 13,626 7/31/1999 12,199 13,743 8/31/1999 12,157 13,727 9/30/1999 12,173 13,747 10/31/1999 12,077 13,672 11/30/1999 12,172 13,796 12/31/1999 12,118 13,764 1/31/2000 12,051 13,716 2/29/2000 12,146 13,815 3/31/2000 12,321 13,993 4/30/2000 12,234 13,942 5/31/2000 12,185 13,902 6/30/2000 12,470 14,226 7/31/2000 12,640 14,417 8/31/2000 12,798 14,600 9/30/2000 12,735 14,547 10/31/2000 12,828 14,679 11/30/2000 12,896 14,749 12/31/2000 13,187 15,090 1/31/2001 13,374 15,315 2/28/2001 13,403 15,334 3/31/2001 13,498 15,476 4/30/2001 13,367 15,303 5/31/2001 13,503 15,481 6/30/2001 13,560 15,591 7/31/2001 13,698 15,788 8/31/2001 13,890 16,058 9/30/2001 13,893 16,035 10/31/2001 14,005 16,214 11/30/2001 13,860 15,975 12/31/2001 13,781 15,867 1/31/2002 13,976 16,157 2/28/2002 14,144 16,386 3/31/2002 13,845 16,003 4/30/2002 14,153 16,409 5/31/2002 14,226 16,508 6/30/2002 14,355 16,683 7/31/2002 14,526 16,922 8/31/2002 14,670 17,138 9/30/2002 14,899 17,500 10/31/2002 14,710 17,199 11/30/2002 14,661 17,090 12/31/2002 14,969 17,529 1/31/2003 14,926 17,399 2/28/2003 15,120 17,707 3/31/2003 15,085 17,695 4/30/2003 15,165 17,817 5/31/2003 15,422 18,280 6/30/2003 15,363 18,171 7/31/2003 14,956 17,489 The chart reflects the performance of the Class A Shares. The performance of the Class B Shares and the Class I Shares will be greater or less than the line shown in the above chart based on the differences in the sales charges and the expenses paid by shareholders investing in Class A Shares, Class B Shares and Class I Shares. Average Annual Total Return -------------------------------------------------------------------------------- As of July 31, 2003 Inception Date 1 Year 5 Year 10 Year -------------------------------------------------------------------------------- Class A Shares* 7/1/97/1/ -1.14% 3.79% 4.11% Class B Shares** 2/3/99/2/ -2.78% 3.44% 3.61% Class I Shares 9/2/97/2/ 3.21% 4.77% 4.62% -------------------------------------------------------------------------------- *Reflects maximum 4.00% sales charge. **Reflects applicable contingent deferred sales charge (maximum 5.00%). The chart and table above represents a comparison of a hypothetical $10,000 investment from 7/31/93 to 7/31/03 in the indicated share class versus a similar investment in the Fund's benchmark. The performance information presented above assumes the reinvestment of dividends and capital gains and does not reflect the deduction of taxes that a shareholder would pay on distributions and redemptions. The performance of the AmSouth Municipal Bond Fund is measured against the Merrill Lynch 1-12-Year Municipal Bond Index, which is an unmanaged index that is generally representative of municipal bonds with intermediate maturities. The index does reflect the deduction of fees associated with a mutual fund, such as investment management fees. The Fund's performance does reflect the deduction of fees for these value-added services. Investors cannot invest directly in an index, although they can invest in its underlying securities. During the period shown, the Advisor waived and/or reimbursed fees for various expenses. Had these waivers and/or reimbursements not been in effect, performance quoted would have been lower. /1/The Fund commenced operations on 7/1/97, through a transfer of assets from certain common and collective trust funds ("commingled") accounts advised by AmSouth Bank using substantially the same investment objective, policies and methodologies as the Fund. The quoted performance of the Fund includes performance of commingled for periods dating back to 7/31/93 and prior to the Fund's commencement of operations on 7/1/97, as adjusted to reflect the expenses associated with the Funds. The commingled accounts were not registered with the Securities and Exchange Commission and, therefore, were not subject to the investment restrictions imposed by law on registered mutual funds. If the commingled account had been registered, the commingled accounts' performance may have been adversely affected. /2/Performance for the Class B and Class I Shares, which commenced operations on 2/3/99 and 9/2/97, respectively, are based on the historical performance of the Class A Shares (without sales charge) prior to that date. The historical performance for the Class B Shares has been adjusted to reflect the higher 12b-1 fees and the contingent deferred sales charge (CDSC). Effective 12/1/02, the Trust Shares were renamed Class I Shares. Past performance is no guarantee of future results. Investment return and net asset value will fluctuate, so that an investor's shares, when redeemed, may be worth more or less than the original cost. 37 AMSOUTH FLORIDA TAX-EXEMPT FUND+ Portfolio Manager [GRAPHIC] Dorothy E. Thomas, CFA Senior Vice President PORTFOLIO MANAGER'S PERSPECTIVE "The AmSouth Florida Tax-Exempt Fund has a portfolio AmSouth Bank of high-quality issues in a fast-growing state with a strong AmSouth Asset Management, Inc. economic base. Interest on the bonds is exempt from both Federal income tax and the Florida intangibles tax. This Dorothy Thomas has more than 20 years of portfolio is managed to benefit from anticipated interest rate experience as an investment portfolio manager. moves." She holds an MBA and a BA in economics and serves as manager of tax-exempt fixed income investments for AmSouth. She also is the portfolio manager for the AmSouth Municipal Bond Fund and the AmSouth Tennessee Tax-Exempt Fund.
[GRAPHIC] Q&A Q. How did the Fund perform during the 12-month period ended July 31, 2003? A. The Fund gained 2.58% (Class A Shares at NAV) during the period. In comparison, the Fund's benchmark the Merrill Lynch 1-12-Year Municipal Bond Index gained 3.35%. The Lipper Florida Intermediate Municipal Debt Funds Average/1/ gained 1.93%. Q. What factors affected the Fund's performance during the period? A. The Fed twice lowered short-term interest rates in response to weak economic data, for a total reduction of 0.75 percentage points. Yields on Florida municipal bonds and other fixed-income securities fell in that environment, boosting the Fund's returns. However, yields rebounded sharply during the final month- and-a-half of the period, and as a result, the Fund's returns declined. The Fund began the period with a duration shorter than that of its benchmark. We reduced the duration further during the first half of the period and then maintained that short duration. We expected an economic recovery that would boost bond yields. That defensive posture caused the Fund to lag its benchmark while yields fell during most of the period. Our defensive strategy contributed to above-average performance when yields rose during June and July. /1/See Glossary of Terms for additional information. + The Fund's income may be subject to certain state and local taxes and, depending on one's tax status, the federal alternative minimum tax. 38 AMSOUTH FLORIDA TAX-EXEMPT FUND+ [CHART] Value of a $10,000 Investment AmSouth Florida Merrill Lynch Tax-Exempt Fund 1-12-Year Municipal (Class A Shares)* Bond Index --------------- ------------------- 9/30/1994 $ 9,597 $10,000 10/31/1994 9,530 9,933 11/30/1994 9,414 9,808 12/31/1994 9,497 9,936 1/31/1995 9,633 10,083 2/28/1995 9,841 10,352 3/31/1995 9,915 10,403 4/30/1995 9,950 10,444 5/31/1995 10,142 10,744 6/30/1995 10,149 10,723 7/31/1995 10,223 10,806 8/31/1995 10,288 10,919 9/30/1995 10,304 10,929 10/31/1995 10,390 11,020 11/30/1995 10,476 11,204 12/31/1995 10,545 11,266 1/31/1996 10,637 11,403 2/29/1996 10,627 11,295 3/31/1996 10,512 11,286 4/30/1996 10,518 11,288 5/31/1996 10,515 11,289 6/30/1996 10,553 11,354 7/31/1996 10,655 11,462 8/31/1996 10,655 11,471 9/30/1996 10,722 11,575 10/31/1996 10,804 11,685 11/30/1996 10,938 11,833 12/31/1996 10,925 11,817 1/31/1997 10,943 11,854 2/28/1997 11,020 11,937 3/31/1997 10,910 11,812 4/30/1997 10,944 11,860 5/31/1997 11,069 12,028 6/30/1997 11,163 12,151 7/31/1997 11,389 12,422 8/31/1997 11,297 12,321 9/30/1997 11,416 12,460 10/31/1997 11,468 12,511 11/30/1997 11,504 12,562 12/31/1997 11,640 12,726 1/31/1998 11,722 12,832 2/28/1998 11,725 12,854 3/31/1998 11,736 12,871 4/30/1998 11,673 12,811 5/31/1998 11,858 12,998 6/30/1998 11,876 13,034 7/31/1998 11,897 13,075 8/31/1998 12,083 13,276 9/30/1998 12,204 13,419 10/31/1998 12,199 13,436 11/30/1998 12,225 13,456 12/31/1998 12,273 13,524 1/31/1999 12,424 13,711 2/28/1999 12,330 13,629 3/31/1999 12,307 13,618 4/30/1999 12,347 13,657 5/31/1999 12,254 13,581 6/30/1999 12,079 13,387 7/31/1999 12,142 13,502 8/31/1999 12,115 13,487 9/30/1999 12,108 13,506 10/31/1999 12,053 13,433 11/30/1999 12,146 13,555 12/31/1999 12,109 13,523 1/31/2000 12,040 13,476 2/29/2000 12,169 13,573 3/31/2000 12,326 13,748 4/30/2000 12,266 13,697 5/31/2000 12,211 13,659 6/30/2000 12,474 13,977 7/31/2000 12,626 14,164 8/31/2000 12,771 14,344 9/30/2000 12,709 14,292 10/31/2000 12,815 14,422 11/30/2000 12,870 14,491 12/31/2000 13,122 14,826 1/31/2001 13,252 15,047 2/28/2001 13,292 15,065 3/31/2001 13,385 15,204 4/30/2001 13,264 15,035 5/31/2001 13,369 15,210 6/30/2001 13,437 15,318 7/31/2001 13,568 15,512 8/31/2001 13,763 15,776 9/30/2001 13,754 15,754 10/31/2001 13,897 15,929 11/30/2001 13,768 15,695 12/31/2001 13,708 15,589 1/31/2002 13,886 15,873 2/28/2002 14,037 16,099 3/31/2002 13,764 15,723 4/30/2002 14,042 16,122 5/31/2002 14,127 16,218 6/30/2002 14,247 16,390 7/31/2002 14,434 16,626 8/31/2002 14,558 16,838 9/30/2002 14,802 17,193 10/31/2002 14,598 16,898 11/30/2002 14,562 16,790 12/31/2002 14,863 17,222 1/31/2003 14,813 17,094 2/28/2003 14,998 17,396 3/31/2003 14,959 17,385 4/30/2003 15,055 17,504 5/31/2003 15,302 17,959 6/30/2003 15,243 17,852 7/31/2003 14,806 17,182 The chart reflects the performance of the Class A Shares. The performance of the Class B Shares and the Class I Shares will be greater or less than the line shown in the above chart based on the differences in the sales charges and the expenses paid by shareholders investing in Class A Shares, Class B Shares and Class I Shares. Average Annual Total Return ----------------------------------------------------------------------------- As of July 31, 2003 Inception Date 1 Year 5 Year Since Inception ----------------------------------------------------------------------------- Class A Shares* 9/30/94 -1.53% 3.61% 4.54% Class B Shares** 3/16/99/1/ -3.05% 3.29% 4.10% Class I Shares 9/2/97/1/ 2.72% 4.61% 5.13% ------------------------------------------------------------------------------ *Reflects maximum 4.00% sales charge. **Reflects applicable contingent deferred sales charge (maximum 5.00%). The chart and table above compare a hypothetical $10,000 investment from 9/30/94 to 7/31/03 in the indicated share class versus a similar investment in the Fund's benchmark. The performance information presented above assumes the reinvestment of dividends and capital gains and does not reflect the deduction of taxes that a shareholder would pay on distributions and redemptions. The performance of the AmSouth Florida Tax-Exempt Fund is measured against the Merrill Lynch 1-12-Year Municipal Bond Index, which is an unmanaged index generally representative of municipal bonds with intermediate maturities. The index does not reflect the deduction of fees associated with a mutual fund, such as investment management fees. The Fund's performance does reflect the deduction of fees for these value-added services. Investors cannot invest directly in an index, although they can invest in its underlying securities. During the period shown, the Advisor waived and/or reimbursed fees for various expenses. Had these waivers and/or reimbursements not been in effect, performance quoted would have been lower. /1/Performance for the Class B and Class I Shares, which commenced operations on 3/16/99 and 9/2/97, respectively, are based on the historical performance of the Class A Shares (without sales charge) prior to that date. The historical performance for the Class B Shares has been adjusted to reflect the higher 12b-1 fees and the contingent deferred sales charge (CDSC). Effective 12/1/02, the Trust Shares were renamed Class I Shares. Past performance is no guarantee of future results. Investment return and net asset value will fluctuate, so that an investor's shares, when redeemed, may be worth more or less than the original cost. 39 AMSOUTH TENNESSEE TAX-EXEMPT FUND+ PORTFOLIO MANAGER [GRAPHIC] Dorothy E. Thomas, CFA Senior Vice President PORTFOLIO MANAGER'S PERSPECTIVE "The AmSouth Tennessee Tax-Exempt Fund generates AmSouth Bank income that is exempt from both Federal and the state of AmSouth Asset Management, Inc. Tennessee income tax. The Fund only invests in securities in the top three rating classes, or of comparable quality. As Dorothy Thomas has more than 20 with the other AmSouth bond funds, we manage our bond years of experience as an portfolios to take advantage of changes in market interest investment portfolio manager. She rates over the full market cycle." holds an MBA and a BA in economics and serves as manager of tax-exempt fixed income investments for AmSouth. She also is the portfolio manager for the AmSouth Municipal Bond and the AmSouth Florida Tax-Exempt Fund.
[GRAPHIC] Q&A Q. How did the Fund perform during the 12-month period ended July 31, 2003? A. The Fund's total return was 2.29% (Class A Shares at NAV). In comparison, the Fund's benchmark the Merrill Lynch 1-12-Year Municipal Bond Index gained 3.35%. The Lipper Other States Intermediate Municipal Debt Funds Average/1/ gained 2.40%. Q. What factors affected the Fund's performance during the period? A. The Fed cut short-term interest rates twice during the period, for a total reduction of 0.75 percentage points. Those rate cuts combined with ongoing economic weakness resulted with yields on municipal issues declining during much of the period. Falling yields led to higher prices on municipal bonds, boosting the Fund's returns. The environment changed in mid-June, however, as investors anticipating an economic recovery sold municipal bonds and other fixed-income securities. Therefore, yields rose dramatically, pushing down bond prices and hurting the Fund's absolute returns. We positioned the Fund's duration shorter than that of the benchmark, because we expected an economic recovery that would cause an increase in bond yields. However, yields did not rise until mid-June, causing the Fund to lag its benchmark for most of the period. Yields did rise dramatically during the final seven weeks of the period, and the Fund benefited from its defensive posture. /1/See Glossary of Terms for additional information. +The Fund's income may be subject to certain state and local taxes and, depending on one's tax status, the federal alternative minimum tax. 40 AMSOUTH TENNESSEE TAX-EXEMPT FUND+ [CHART] Value of a $10,000 Investment AmSouth Tennessee Merrill Lynch 1-12- Tax-Exempt Fund Year Municipal (Class A Shares)* Bond Index ----------------- ------------------ 7/31/1993 $ 9,597 $10,000 8/31/1993 9,785 10,148 9/30/1993 9,916 10,228 10/31/1993 9,906 10,307 11/30/1993 9,794 10,216 12/31/1993 9,972 10,377 1/31/1994 10,047 10,480 2/28/1994 9,794 10,248 3/31/1994 9,162 9,975 4/30/1994 9,205 10,018 5/31/1994 9,268 10,063 6/30/1994 9,209 10,054 7/31/1994 9,359 10,269 8/31/1994 9,394 10,295 9/30/1994 9,266 10,178 10/31/1994 9,111 10,110 11/30/1994 8,945 9,983 12/31/1994 9,117 10,114 1/31/1995 9,349 10,262 2/28/1995 9,578 10,537 3/31/1995 9,656 10,588 4/30/1995 9,653 10,630 5/31/1995 9,879 10,935 6/30/1995 9,778 10,914 7/31/1995 9,826 10,998 8/31/1995 9,942 11,114 9/30/1995 9,987 11,124 10/31/1995 10,105 11,217 11/30/1995 10,251 11,403 12/31/1995 10,338 11,467 1/31/1996 10,406 11,607 2/29/1996 10,299 11,496 3/31/1996 10,132 11,488 4/30/1996 10,076 11,489 5/31/1996 10,050 11,490 6/30/1996 10,127 11,557 7/31/1996 10,194 11,666 8/31/1996 10,157 11,676 9/30/1996 10,256 11,781 10/31/1996 10,367 11,894 11/30/1996 10,550 12,044 12/31/1996 10,482 12,028 1/31/1997 10,487 12,066 2/28/1997 10,552 12,150 3/31/1997 10,387 12,023 4/30/1997 10,434 12,071 5/31/1997 10,568 12,243 6/30/1997 10,647 12,368 7/31/1997 10,932 12,643 8/31/1997 10,806 12,541 9/30/1997 10,940 12,683 10/31/1997 10,998 12,734 11/30/1997 11,035 12,786 12/31/1997 11,229 12,953 1/31/1998 11,340 13,061 2/28/1998 11,304 13,083 3/31/1998 11,272 13,100 4/30/1998 11,161 13,040 5/31/1998 11,362 13,230 6/30/1998 11,360 13,266 7/31/1998 11,371 13,308 8/31/1998 11,561 13,513 9/30/1998 11,694 13,659 10/31/1998 11,691 13,676 11/30/1998 11,699 13,696 12/31/1998 11,707 13,765 1/31/1999 11,853 13,956 2/28/1999 11,743 13,872 3/31/1999 11,728 13,861 4/30/1999 11,759 13,900 5/31/1999 11,652 13,823 6/30/1999 11,450 13,626 7/31/1999 11,494 13,743 8/31/1999 11,433 13,727 9/30/1999 11,445 13,747 10/31/1999 11,338 13,672 11/30/1999 11,431 13,796 12/31/1999 11,347 13,764 1/31/2000 11,288 13,716 2/29/2000 11,381 13,815 3/31/2000 11,538 13,993 4/30/2000 11,466 13,942 5/31/2000 11,408 13,902 6/30/2000 11,677 14,226 7/31/2000 11,819 14,417 8/31/2000 11,959 14,600 9/30/2000 11,885 14,547 10/31/2000 11,997 14,679 11/30/2000 12,061 14,749 12/31/2000 12,329 15,090 1/31/2001 12,440 15,315 2/28/2001 12,462 15,334 3/31/2001 12,549 15,476 4/30/2001 12,389 15,303 5/31/2001 12,500 15,481 6/30/2001 12,562 15,591 7/31/2001 12,711 15,788 8/31/2001 12,873 16,058 9/30/2001 12,867 16,035 10/31/2001 12,975 16,214 11/30/2001 12,805 15,975 12/31/2001 12,749 15,867 1/31/2002 12,931 16,157 2/28/2002 13,081 16,386 3/31/2002 12,783 16,003 4/30/2002 13,085 16,409 5/31/2002 13,160 16,508 6/30/2002 13,283 16,683 7/31/2002 13,458 16,922 8/31/2002 13,599 17,138 9/30/2002 13,800 17,500 10/31/2002 13,617 17,199 11/30/2002 13,542 17,090 12/31/2002 13,823 17,529 1/31/2003 13,766 17,399 2/28/2003 13,925 17,707 3/31/2003 13,894 17,695 4/30/2003 13,953 17,817 5/31/2003 14,197 18,280 6/30/2003 14,145 18,171 7/31/2003 13,765 17,489 The chart reflects the performance of the Class A Shares. The performance of the Class B Shares and the Class I Shares will be greater or less than the line shown in the above chart based on the differences in the sales charges and the expenses paid by shareholders investing in Class A Shares, Class B Shares and Class I Shares. Average Annual Total Return --------------------------------------------------------------------- As of July 31, 2003 Inception Date 1 Year 5 Year 10 Year --------------------------------------------------------------------- Class A Shares* 3/28/94/1/ -1.79% 3.05% 3.25% Class B Shares** 2/24/98/2/ -3.42% 2.79% 2.81% Class I Shares 10/3/97/2/ 2.47% 4.07% 3.78% --------------------------------------------------------------------- *Reflects maximum 4.00% sales charge. **Reflects applicable contingent deferred sales charge (maximum 5.00%). The chart and table above compare a hypothetical $10,000 investment from 7/31/93 to 7/31/03 in the indicated share class versus a similar investment in the Fund's benchmark. The performance information presented above assumes the reinvestment of dividends and capital gains and does not reflect the deduction of taxes that a shareholder would pay on distributions and redemptions. The performance of the AmSouth Tennessee Tax-Exempt Fund is measured against the Merrill Lynch 1-12-Year Municipal Bond Index, which is unmanaged and is generally representative of municipal bonds with intermediate maturities. The index does not reflect the deduction of fees associated with a mutual fund, such as investment management fees. The Fund's performance does reflect the deduction of fees for these value-added services. Investors cannot invest directly in an index, although they can invest in its underlying securities. During the period shown, the Advisor waived and/or reimbursed fees for various expenses. Had these waivers and/or reimbursements not been in effect, performance quoted would have been lower. The quoted returns reflect the performance from 3/28/94 to 3/12/00 of the ISG Tennessee Tax-Exempt Fund, an open-end investment company that was the predecessor fund to the AmSouth Tennessee Tax-Exempt Fund. /1/The ISG Tennessee Tax-Exempt Fund commenced operations on 3/28/94, through a transfer of assets from certain collective trust fund ("commingled") accounts managed by First American National Bank, using substantially the same investment objective, policies and methodologies as the Fund. The quoted performance of the Fund includes performance of the commingled accounts for periods dating back to 7/31/93, and prior to the mutual fund's commencement of operations, as adjusted to reflect the expenses associated with the Fund. The commingled accounts were not registered with the Securities and Exchange Commission and, therefore, were not subject to the investment restrictions imposed by law on registered mutual funds. If the commingled accounts had been registered, the commingled accounts' performance may have been adversely affected. /2/Performance for the Class B and Trust Shares, which commenced operations on 2/24/98 and 10/3/97, respectively, are based on the historical performance of the Class A Shares (without sales charge) prior to that date. The historical performance for the Class B Shares has been adjusted to reflect the higher 12b-1 fees and the contingent deferred sales charge (CDSC). Effective 12/1/02, the Trust Shares were renamed the Class I Shares. Past performance is no guarantee of future results. Investment return and net asset value will fluctuate, so that an investor's shares, when redeemed, may be worth more or less than the original cost. 41 THE AMSOUTH MONEY MARKET FUNDS PORTFOLIO MANAGER John Mark McKenzie Senior Vice President AmSouth Bank AmSouth Asset Management, Inc. John Mark McKenzie has been in investment management since 1981. He serves as portfolio manager for five AmSouth money market funds: the U.S. Treasury, Treasury Reserve, Prime, Income Fund. He holds a bachelor's degree in banking and Institutional Prime Obligations and Tax-Exempt. In finance from the University of Mississippi, and earned his addition, he co-manages the AmSouth Government law degree from the University of Mississippi School of Law.
[GRAPHIC] Q&A Q. What factors affected the performance of the Funds during the 12-month period ended July 31, 2003? A. The Fed lowered interest rates twice, for a total reduction of 75 basis points. Those moves pushed down yields on short-term bonds throughout the period. All sectors of the short-term fixed-income markets saw their yields decline significantly in that environment. Falling yields pushed up prices of the securities in the Funds, but reduced the yield we were able to capture for shareholders. We compensated for the decline in yields by extending the Funds' average maturities, because bonds with slightly longer maturities offered more attractive yields and helped preserve income levels. Those moves were part of our ongoing strategy to emphasize current income. We maintained very high-quality portfolios throughout the period. . As of July 31, 2003, the Prime Obligations Fund's average maturity was 62 days, compared with 51 days on January 31, 2003 and 31 days on July 31, 2002.++ . As of July 31, 2003, the U.S. Treasury Fund's average maturity was 50 days, compared with 55 days on January 31, 2003 and 49 days on July 31, 2002.++ . As of July 31, 2003, the Tax-Exempt Fund's+ average maturity was 36 days, compared with 51 days on January 31, 2003 and 65 days on July 31, 2002.++ . As of July 31, 2003, the Treasury Reserve Fund's average maturity was 55 days, compared with 47 days on January 31, 2003 and 35 days on July 31, 2002.++ . As of July 31, 2003, the Institutional Prime Obligations Fund's average maturity was 56 days, compared with 55 days on January 31, 2003 and 31 days on July 31, 2002.++ +The Fund's income may be subject to certain state and local taxes and, depending on one's tax status, the federal alternative minimum tax. ++The composition of the Fund's holdings is subject to change. Investments in the Prime, the U.S. Treasury, the Tax-Exempt, the Treasury Reserve and the Institutional Prime Obligations Money Market Funds are neither insured or guaranteed by the FDIC or any other government agency. Although the Funds seek to preserve the value of your investment at $1.00 per share, it is possible to lose money by investing in the Funds. Past performance is no guarantee of future results. Investment return and net asset value will fluctuate, so that an investor's shares, when redeemed, may be worth more or less than the original cost. 42 VALUE FUND Schedule of Portfolio Investments July 31, 2003 (amounts in thousands, except shares)
Shares Value ------- --------- COMMON STOCKS (97.5%) Aerospace/Defense (5.5%) Boeing Co.............................. 404,900 $ 13,410 Lockheed Martin Corp................... 53,300 2,790 Raytheon Co............................ 259,954 7,981 United Technologies Corp............... 67,752 5,097 --------- 29,278 --------- Apparel (2.2%) Liz Claiborne, Inc..................... 68,455 2,357 Nike, Inc., Class B.................... 132,800 6,871 V.F. Corp.............................. 69,600 2,654 --------- 11,882 --------- Applications Software (0.6%) Reynolds & Reynolds Co., Class A....... 107,134 3,098 --------- Banking (6.3%) Bank of America Corp................... 151,428 12,502 First Tennessee National Corp.......... 155,400 6,667 National City Corp..................... 351,827 11,592 SunTrust Banks, Inc.................... 46,988 2,862 --------- 33,623 --------- Chemicals -- Specialty (0.6%) Dow Chemical Co........................ 90,723 3,203 --------- Computer Hardware (4.5%) Hewlett-Packard Co..................... 875,248 18,529 IBM Corp............................... 66,635 5,414 --------- 23,943 --------- Computer Software & Services (2.2%) Computer Associates International, Inc. 249,900 6,360 EMC Corp. (b).......................... 500,000 5,320 --------- 11,680 --------- Consumer Goods (0.5%) Leggett & Platt, Inc................... 112,383 2,488 --------- Distribution Wholesale (0.7%) Genuine Parts Co....................... 111,900 3,462 --------- Diversified Manufacturing (2.7%) Honeywell International, Inc........... 154,118 4,358 Illinois Tool Works, Inc............... 25,552 1,780 Tyco International, Ltd................ 444,493 8,268 --------- 14,406 --------- Entertainment (0.5%) Walt Disney Co......................... 122,670 2,689 --------- Financial Services (23.0%) Bear Stearns Cos., Inc................. 111,900 7,497 CIT Group, Inc......................... 565,160 15,757 Citigroup, Inc......................... 692,480 31,022 FleetBoston Financial Corp............. 193,154 6,005 Freddie Mac............................ 137,835 6,733 Goldman Sachs Group, Inc............... 141,400 12,322 J.P. Morgan Chase & Co................. 350,919 12,300 Lincoln National Corp.................. 283,300 10,578 Prudential Financial, Inc.............. 100,184 3,565 Washington Mutual, Inc................. 412,961 16,303 --------- 122,082 ---------
Continued
Shares Value ------- --------- COMMON STOCKS, continued Food Distributors & Wholesalers (1.6%) Costco Wholesale Corp. (b)................ 230,000 $ 8,522 --------- Forest & Paper Products (1.0%) International Paper Co.................... 60,000 2,347 MeadWestvaco Corp......................... 128,149 3,103 --------- 5,450 --------- Gaming (0.4%) Park Place Entertainment Corp. (b)........ 215,052 1,925 --------- Insurance (10.3%) ACE Ltd................................... 168,229 5,550 AFLAC, Inc................................ 323,600 10,380 American International Group, Inc......... 200,000 12,839 MetLife, Inc.............................. 288,771 8,005 St. Paul Cos., Inc........................ 145,103 5,103 Travelers Property Casualty Corp., Class B 495,209 7,993 XL Capital, Ltd........................... 63,000 5,009 --------- 54,879 --------- Machinery & Equipment (0.9%) Black & Decker Corp....................... 118,600 4,846 --------- Medical Products (0.8%) Becton, Dickinson & Co.................... 111,510 4,085 --------- Metals & Mining (2.1%) Alcoa, Inc................................ 410,000 11,386 --------- Multimedia (4.3%) AOL Time Warner, Inc. (b)................. 569,052 8,780 Viacom, Inc., Class B (b)................. 325,000 14,144 --------- 22,924 --------- Oil & Gas Exploration, Production, & Services (5.5%) Anadarko Petroleum Corp................... 112,500 4,928 Burlington Resources, Inc................. 35,700 1,648 ChevronTexaco Corp........................ 140,265 10,115 ConocoPhillips............................ 70,998 3,716 Halliburton Co............................ 264,187 5,857 Kerr-McGee Corp........................... 70,988 3,123 --------- 29,387 --------- Pharmaceuticals (1.3%) Bristol-Myers Squibb Co................... 272,806 7,148 --------- Real Estate (0.5%) Simon Property Group, Inc................. 69,100 2,926 --------- Restaurants (0.4%) McDonald's Corp........................... 90,224 2,076 --------- Retail (4.0%) Home Depot, Inc........................... 428,245 13,361 Limited Brands............................ 334,881 5,596 Office Depot, Inc. (b).................... 147,024 2,441 --------- 21,398 --------- Semiconductors (1.1%) National Semiconductor Corp. (b).......... 137,300 3,068 Texas Instruments, Inc.................... 139,151 2,626 --------- 5,694 ---------
Continued 43 VALUE FUND Schedule of Portfolio Investments July 31, 2003 (amounts in thousands, except shares)
Shares Value ---------- --------- COMMON STOCKS, continued Telecommunications -- Equipment (1.4%) Harris Corp............................. 224,798 $ 7,277 --------- Transportation & Shipping (1.4%) FedEx Corp.............................. 115,900 7,463 --------- Travel (1.4%) Carnival Corp........................... 216,367 7,424 --------- Utilities -- Electric & Gas (6.1%) American Electric Power Co., Inc........ 250,694 7,035 Constellation Energy Group.............. 105,472 3,523 Dominion Resources, Inc................. 94,746 5,694 Duke Energy Corp........................ 337,220 5,918 Entergy Corp............................ 135,400 6,975 TXU Corp................................ 162,838 3,284 --------- 32,429 --------- Utilities -- Telecommunications (3.7%) BellSouth Corp.......................... 222,666 5,671 SBC Communications, Inc................. 313,703 7,328 Sprint Corp............................. 198,998 2,810 Verizon Communications, Inc............. 111,466 3,886 --------- 19,695 --------- TOTAL COMMON STOCKS..................... 518,768 --------- INVESTMENT COMPANIES (2.4%) AmSouth Prime Money Market Fund......... 5,073,954 5,074 AmSouth U.S. Treasury Money Market Fund................................... 7,757,648 7,758 --------- TOTAL INVESTMENT COMPANIES.............................. 12,832 --------- SHORT-TERM SECURITIES HELD AS COLLATERAL FOR SECURITIES LENDING (14.8%) Pool of Various Securities for AmSouth Mutual Funds -- Footnote 3 (Securities Lending)............................... 78,576,265 78,576 --------- TOTAL SHORT-TERM SECURITIES HELD AS COLLATERAL FOR SECURITIES LENDING..................... 78,576 --------- TOTAL INVESTMENTS (Cost $521,595) (a) -- 114.70%......... 610,176 Liabilities in excess of other assets -- (14.70)%............................... (77,955) --------- NET ASSETS -- 100.0%.................... $ 532,221 =========
-------- (a)Cost for federal income tax purposes is $530,544. The gross unrealized appreciation/(depreciation) on a tax basis is as follows: Unrealized appreciation.... $83,269 Unrealized depreciation.... (3,637) ------- Net unrealized appreciation $79,632 =======
(b)Represents non-income producing security. See notes to financial statements. SELECT EQUITY FUND Schedule of Portfolio Investments July 31, 2003 (amounts in thousands, except shares)
Shares Value --------- ------- COMMON STOCKS (98.4%) Consumer Discretionary (31.8%) Gannett Co., Inc........................ 35,500 $ 2,727 Home Depot, Inc......................... 137,900 4,302 Lee Enterprises, Inc.................... 45,600 1,693 McDonald's Corp......................... 208,900 4,807 Snap-on, Inc............................ 61,400 1,739 Walt Disney Co.......................... 144,400 3,165 Washington Post Co., Class B............ 700 473 ------- 18,906 ------- Consumer Staples (27.2%) Coca-Cola Co............................ 3,400 153 Del Monte Foods Co. (b)................. 17,596 154 General Mills, Inc...................... 62,500 2,867 Gillette Co............................. 88,900 2,735 H.J. Heinz Co........................... 81,600 2,779 J.M. Smucker Co......................... 40,778 1,633 Kimberly-Clark Corp..................... 57,300 2,773 SYSCO Corp.............................. 101,200 3,049 ------- 16,143 ------- Health Care (6.6%) Bristol-Myers Squibb Co................. 58,700 1,538 Pfizer, Inc............................. 71,520 2,386 ------- 3,924 ------- Industrials (28.6%) American Power Conversion Corp. (b)..... 165,300 2,881 Automatic Data Processing, Inc.......... 114,400 4,242 Briggs & Stratton Corp.................. 33,800 1,861 Pitney Bowes, Inc....................... 111,400 4,245 Waste Management, Inc................... 157,960 3,774 ------- 17,003 ------- Materials (4.2%) International Flavors & Fragrances, Inc. 80,400 2,425 Monsanto Co............................. 3,326 76 ------- 2,501 ------- TOTAL COMMON STOCKS..................... 58,477 ------- INVESTMENT COMPANIES (1.8%) AmSouth Prime Money Market Fund......... 1,072,969 1,073 AmSouth U.S. Treasury Money Market Fund................................... 5,362 5 ------- TOTAL INVESTMENT COMPANIES.............. 1,078 ------- TOTAL INVESTMENTS (Cost $55,998) (a) -- 100.2%........... 59,555 Liabilities in excess of other assets -- (0.2)%................................. (143) ------- NET ASSETS -- 100.0%.................... $59,412 =======
(a)Represents cost for financial reporting purposes, is substantially the same as cost for federal income tax purposes, and differs from value by unrealized appreciation of securities as follows: Unrealized appreciation.... $ 6,154 Unrealized depreciation.... (2,597) ------- Net unrealized appreciation $ 3,557 =======
(b)Represents non-income producing security. See notes to financial statements. 44 ENHANCED MARKET FUND Schedule of Portfolio Investments July 31, 2003 (amounts in thousands, except shares)
Shares Value ------ --------- COMMON STOCKS (93.3%) Consumer Discretionary (10.7%) American Greetings Corp., Class A (b).... 800 $ 14 AOL Time Warner, Inc. (b)................ 69,600 1,074 AutoNation, Inc. (b)..................... 900 15 AutoZone, Inc. (b)....................... 2,600 216 Best Buy Co., Inc. (b)................... 4,200 183 Big Lots, Inc. (b)....................... 3,100 48 Black & Decker Corp...................... 1,800 74 Carnival Corp............................ 8,300 285 Centex Corp.............................. 800 58 Circuit City Stores, Inc................. 5,600 51 Comcast Corp., Class A (b)............... 17,512 531 Cooper Tire & Rubber Co.................. 900 15 Dana Corp................................ 3,900 60 Darden Restaurants, Inc.................. 4,550 85 Delphi Corp.............................. 14,737 124 Dillard's, Inc., Class A................. 2,100 32 Dollar General Corp...................... 8,800 162 Dow Jones & Co., Inc..................... 200 8 Family Dollar Stores, Inc................ 200 8 Federated Department Stores, Inc......... 5,000 200 Fortune Brands, Inc...................... 3,900 217 Gannett Co., Inc......................... 5,100 392 Harrah's Entertainment, Inc. (b)......... 2,900 127 Hasbro, Inc.............................. 4,300 81 Hilton Hotels Corp....................... 1,900 28 Home Depot, Inc.......................... 32,200 1,005 International Game Technology............ 2,800 71 Interpublic Group of Cos., Inc........... 2,100 29 Johnson Controls, Inc.................... 200 19 Jones Apparel Group, Inc. (b)............ 3,400 98 Knight-Ridder, Inc....................... 500 34 Kohl's Corp. (b)......................... 5,200 309 Limited Brands........................... 6,900 115 Liz Claiborne, Inc....................... 200 7 Lowe's Cos., Inc......................... 11,300 537 Mattel, Inc.............................. 11,500 223 May Department Stores Co................. 1,900 47 Maytag Corp.............................. 2,100 53 McDonald's Corp.......................... 23,800 548 McGraw Hill Cos., Inc.................... 4,700 286 Meredith Corp............................ 1,300 59 New York Times Co., Class A.............. 1,200 54 Office Depot, Inc. (b)................... 8,200 136 Omnicom Group, Inc....................... 2,500 185 Pulte Homes, Inc......................... 100 6 Reebok International, Ltd. (b)........... 800 26 Sears, Roebuck & Co...................... 4,200 171 Stanley Works............................ 2,300 65 Staples, Inc. (b)........................ 8,400 169 Starwood Hotels & Resorts Worldwide, Inc. 2,600 85 Target Corp.............................. 13,300 510 TJX Cos., Inc............................ 6,900 134 Tribune Co............................... 6,600 312 Tupperware Corp.......................... 700 11 Univision Communications, Inc., Class A (b)............................. 3,000 94
Continued
Shares Value ------ --------- COMMON STOCKS, continued Consumer Discretionary, continued V.F. Corp........................... 400 $ 15 Viacom, Inc., Class B (b)........... 23,224 1,011 Visteon Corp........................ 1,591 10 Wal-Mart Stores, Inc................ 51,200 2,862 Walt Disney Co...................... 6,000 132 Wendy's International, Inc.......... 3,000 88 YUM! Brands, Inc. (b)............... 5,200 156 --------- 13,760 --------- Consumer Staples (7.3%) Adolph Coors Co., Class B........... 1,000 51 Alberto-Culver Co., Class B......... 100 6 Altria Group, Inc................... 31,900 1,276 Anheuser-Busch Cos., Inc............ 11,300 586 Archer-Daniels-Midland Co........... 17,011 224 Brown-Forman Corp................... 300 23 Coca-Cola Co........................ 35,800 1,611 Colgate-Palmolive Co................ 100 5 ConAgra Foods, Inc.................. 7,100 160 Gillette Co......................... 13,800 424 H.J. Heinz Co....................... 8,800 300 Hershey Foods Corp.................. 1,800 131 Kellogg Co.......................... 5,400 185 Kimberly-Clark Corp................. 9,200 445 Kroger Co. (b)...................... 20,200 342 McCormick & Co., Inc................ 1,600 41 Pepsi Bottling Group, Inc........... 5,300 116 PepsiCo, Inc........................ 25,690 1,184 Procter & Gamble Co................. 17,100 1,503 R.J. Reynolds Tobacco Holdings, Inc. 2,200 78 Safeway, Inc. (b)................... 5,800 124 Sara Lee Corp....................... 17,800 333 SUPERVALU, Inc...................... 3,500 82 UST, Inc............................ 4,400 146 Walgreen Co......................... 1,200 36 --------- 9,412 --------- Energy (5.8%) Amerada Hess Corp................... 2,300 108 Anadarko Petroleum Corp............. 3,300 145 Apache Corp......................... 2,801 174 Ashland, Inc........................ 900 30 Baker Hughes, Inc................... 4,400 138 BJ Services Co. (b)................. 4,200 144 Burlington Resources, Inc........... 2,700 125 ChevronTexaco Corp.................. 16,619 1,197 ConocoPhillips...................... 12,164 636 Devon Energy Corp................... 3,000 142 EOG Resources, Inc.................. 400 16 Exxon Mobil Corp.................... 93,364 3,321 Halliburton Co...................... 7,700 171 Kerr-McGee Corp..................... 2,600 114 Marathon Oil Corp................... 4,100 106 Nabors Industries, Ltd. (b)......... 100 4 Noble Corp. (b)..................... 3,500 115 Rowan Cos., Inc. (b)................ 2,500 55 Schlumberger Ltd.................... 12,800 577
Continued 45 ENHANCED MARKET FUND Schedule of Portfolio Investments July 31, 2003 (amounts in thousands, except shares)
Shares Value ------ --------- COMMON STOCKS, continued Energy, continued Sunoco, Inc........................... 2,000 $ 74 Transocean, Inc. (b).................. 4,200 82 Unocal Corp........................... 2,000 59 --------- 7,533 --------- Financials (19.7%) ACE Ltd............................... 3,500 115 AFLAC, Inc............................ 6,800 218 Allstate Corp......................... 15,000 570 Ambac Financial Group, Inc............ 2,800 184 American Express Co................... 23,100 1,020 American International Group, Inc..... 37,316 2,397 Aon Corp.............................. 2,300 55 Apartment Investment & Management Co., Class A.............................. 1,200 47 Bank of America Corp.................. 22,800 1,884 Bank One Corp......................... 21,300 843 BB&T Corp............................. 6,200 216 Bear Stearns Cos., Inc................ 300 20 Charles Schwab Corp................... 17,700 184 Charter One Financial, Inc............ 5,954 194 Chubb Corp............................ 4,500 292 Cincinnati Financial Corp............. 1,100 43 Citigroup, Inc........................ 71,966 3,225 Comerica, Inc......................... 4,600 223 Equity Office Properties Trust........ 5,400 150 Equity Residential Property........... 3,600 100 Fannie Mae............................ 13,100 839 Federated Investors, Inc., Class B.... 2,900 83 First Tennessee National Corp......... 700 30 FleetBoston Financial Corp............ 21,918 681 Freddie Mac........................... 13,000 635 Golden West Financial Corp............ 4,000 330 Goldman Sachs Group, Inc.............. 6,800 593 Hartford Financial Services Group..... 6,700 350 Huntington Bancshares, Inc............ 1,000 20 J.P. Morgan Chase & Co., Inc.......... 33,720 1,183 Janus Capital Group, Inc.............. 2,900 51 John Hancock Financial Services, Inc.. 5,300 173 KeyCorp............................... 5,600 151 Lehman Brothers Holdings, Inc......... 3,200 202 Lincoln National Corp................. 4,700 175 Loews Corp............................ 4,900 225 Marsh & McLennan Cos., Inc............ 10,500 521 MBNA Corp............................. 28,550 636 Mellon Financial Corp................. 11,400 345 Merrill Lynch & Co., Inc.............. 12,400 674 MGIC Investment Corp.................. 500 28 Moody's Corp.......................... 2,000 103 Morgan Stanley Dean Witter & Co....... 15,200 721 North Fork Bancorporation, Inc........ 2,100 74 Plum Creek Timber Co., Inc............ 2,400 65 Principal Financial Group, Inc........ 4,200 137 Providian Financial Corp. (b)......... 7,600 73 Prudential Financial, Inc............. 7,500 267 Regions Financial Corp................ 400 14
Continued
Shares Value ------- --------- COMMON STOCKS, continued Financials, continued SAFECO Corp............................... 100 $ 4 Simon Property Group, Inc................. 2,400 102 State Street Corp......................... 8,800 404 Torchmark Corp............................ 500 20 Travelers Property Casualty Corp., Class B 13,310 215 U.S. Bancorp.............................. 34,807 853 Union Planters Corp....................... 2,650 85 UnumProvident Corp........................ 7,600 103 Wachovia Corp............................. 23,600 1,031 Washington Mutual, Inc.................... 2,600 103 Wells Fargo & Co.......................... 22,300 1,127 XL Capital, Ltd., Class A................. 1,800 143 --------- 25,549 --------- Health Care (14.5%) Abbott Laboratories....................... 23,600 926 Aetna, Inc................................ 4,000 246 AmerisourceBergen Corp.................... 2,000 126 Amgen, Inc. (b)........................... 16,948 1,179 Anthem, Inc. (b).......................... 1,900 143 Applera Corp. -- Applied Biosystems Group.................................... 4,700 102 Bausch & Lomb, Inc........................ 1,400 59 Baxter International, Inc................. 13,100 362 Becton, Dickinson & Co.................... 6,700 245 Biogen, Inc. (b).......................... 2,000 77 Biomet, Inc............................... 3,450 102 Bristol-Myers Squibb Co................... 30,400 796 C.R. Bard, Inc............................ 1,400 96 Cardinal Health, Inc...................... 6,000 329 CIGNA Corp................................ 3,700 173 Eli Lilly & Co............................ 14,800 974 Forest Laboratories, Inc. (b)............. 9,100 436 Genzyme Corp. (b)......................... 5,700 288 Guidant Corp.............................. 8,100 382 Humana, Inc. (b).......................... 4,300 75 IMS Health, Inc........................... 5,200 101 Johnson & Johnson......................... 39,200 2,031 King Pharmaceuticals, Inc. (b)............ 5,866 88 McKesson HBOC, Inc........................ 3,800 123 MedImmune, Inc. (b)....................... 3,300 129 Medtronic, Inc............................ 16,100 829 Merck & Co., Inc.......................... 31,700 1,753 Pfizer, Inc............................... 105,273 3,513 Quest Diagnostics, Inc. (b)............... 1,900 114 Quintiles Transnational Corp. (b)......... 1,500 21 Schering-Plough Corp...................... 26,000 441 St. Jude Medical, Inc. (b)................ 4,700 252 Tenet Healthcare Corp. (b)................ 8,300 114 UnitedHealth Group, Inc................... 11,600 604 Watson Pharmaceuticals, Inc. (b).......... 2,600 104 WellPoint Health Networks, Inc. (b)....... 3,900 326 Wyeth..................................... 20,300 925 Zimmer Holdings, Inc. (b)................. 2,610 125 --------- 18,709 ---------
Continued 46 ENHANCED MARKET FUND Schedule of Portfolio Investments July 31, 2003 (amounts in thousands, except shares)
Shares Value ------- --------- COMMON STOCKS, continued Industrials (10.7%) 3M Co............................... 5,100 $ 716 American Power Conversion Corp. (b). 4,600 80 American Standard Cos., Inc. (b).... 900 69 Automatic Data Processing, Inc...... 11,500 426 Avery Dennison Corp................. 800 43 Boeing Co........................... 15,400 510 Burlington Northern Santa Fe........ 9,900 273 Cintas Corp......................... 300 12 Concord EFS, Inc. (b)............... 6,700 91 Convergys Corp. (b)................. 4,400 74 Cooper Industries, Ltd., Class A.... 2,500 111 Crane Co............................ 1,500 37 CSX Corp............................ 2,800 88 Deere & Co.......................... 6,300 320 Deluxe Corp......................... 700 31 Dover Corp.......................... 1,500 55 Eaton Corp.......................... 1,900 160 Emerson Electric Co................. 5,600 301 Equifax, Inc........................ 1,900 44 FedEx Corp.......................... 7,600 489 First Data Corp..................... 9,900 374 Fluor Corp.......................... 1,000 36 General Dynamics Corp............... 4,700 373 General Electric Co................. 135,700 3,860 Genuine Parts Co.................... 1,200 37 Goodrich Corp....................... 3,100 71 H & R Block, Inc.................... 1,400 59 Honeywell International, Inc........ 17,200 486 Ingersoll Rand Co................... 4,500 244 ITT Industries, Inc................. 2,400 160 Lockheed Martin Corp................ 8,800 461 McDermott International, Inc. (b)... 800 5 Norfolk Southern Corp............... 10,300 198 Northrop Grumman Corp............... 3,800 351 PACCAR, Inc......................... 800 62 Parker-Hannifin Corp................ 500 23 Pitney Bowes, Inc................... 3,100 118 Power-One, Inc. (b)................. 1,000 11 R.R. Donnelley & Sons Co............ 1,500 40 Raytheon Co......................... 10,700 328 Rockwell Automation................. 3,900 101 Rockwell Collins, Inc............... 2,400 62 Ryder System, Inc................... 1,600 46 Sabre Holdings Corp................. 3,400 78 Textron, Inc........................ 3,600 156 Thomas & Betts Corp. (b)............ 700 11 Tyco International, Ltd............. 26,369 490 Union Pacific Corp.................. 6,100 372 United Parcel Service, Inc., Class B 8,500 536 United Technologies Corp............ 8,400 632 W. W. Grainger, Inc................. 2,400 118 --------- 13,829 --------- Information Technology (16.1%) ADC Telecommunications, Inc. (b).... 21,200 46 Adobe Systems, Inc.................. 6,100 199
Continued
Shares Value ------- --------- COMMON STOCKS, continued Information Technology, continued Advanced Micro Devices, Inc. (b).. 9,100 $ 66 Agilent Technologies, Inc. (b).... 6,179 134 Altera Corp. (b).................. 5,000 96 Analog Devices, Inc. (b).......... 6,100 231 Andrew Corp. (b).................. 1,200 13 Applied Materials, Inc. (b)....... 24,600 480 Applied Micro Circuits Corp. (b).. 3,800 22 Autodesk, Inc..................... 3,000 45 Avaya, Inc. (b)................... 4,679 45 BMC Software, Inc. (b)............ 3,100 44 Broadcom Corp., Class A (b)....... 7,300 148 CIENA Corp. (b)................... 11,400 66 Cisco Systems, Inc. (b)........... 108,600 2,120 Citrix Systems, Inc. (b).......... 2,300 42 Compuware Corp. (b)............... 10,000 52 Comverse Technology, Inc. (b)..... 5,000 74 Dell, Inc. (b).................... 41,600 1,401 Electronic Arts, Inc. (b)......... 3,800 319 Electronic Data Systems Corp...... 6,300 140 EMC Corp. (b)..................... 52,662 560 Gateway, Inc. (b)................. 4,000 20 Hewlett-Packard Co................ 40,311 853 IBM Corp.......................... 23,900 1,942 Intel Corp........................ 89,700 2,239 Intuit, Inc. (b).................. 2,700 116 Jabil Circuit, Inc. (b)........... 5,200 120 JDS Uniphase Corp. (b)............ 29,300 88 KLA-Tencor Corp. (b).............. 5,000 258 Lexmark International Group, Inc., Class A (b)...................... 1,700 109 Linear Technology Corp............ 5,300 195 LSI Logic Corp. (b)............... 9,800 91 Maxim Integrated Products, Inc.... 5,300 207 Mercury Interactive Corp. (b)..... 2,100 83 Micron Technology, Inc. (b)....... 8,000 117 Microsoft Corp.................... 146,700 3,874 National Semiconductor Corp. (b).. 4,800 107 Novell, Inc. (b).................. 9,700 34 Novellus Systems, Inc. (b)........ 3,100 111 NVIDIA Corp. (b).................. 4,200 80 Oracle Corp. (b).................. 88,000 1,056 Parametric Technology Corp. (b)... 3,300 11 Peoplesoft, Inc. (b).............. 4,100 68 PerkinElmer, Inc.................. 1,600 24 PMC-Sierra, Inc. (b).............. 2,100 26 QLogic Corp. (b).................. 2,500 105 Qualcomm, Inc..................... 17,400 652 Sanmina Corp. (b)................. 13,400 106 Scientific-Atlanta, Inc........... 2,000 61 Siebel Systems, Inc. (b).......... 9,900 93 Solectron Corp. (b)............... 21,300 109 Sun Microsystems, Inc. (b)........ 84,400 316 Symbol Technologies, Inc.......... 6,000 77 Tektronix, Inc. (b)............... 2,300 49 Tellabs, Inc. (b)................. 5,400 36 Teradyne, Inc. (b)................ 4,800 79
Continued 47 ENHANCED MARKET FUND Schedule of Portfolio Investments July 31, 2003 (amounts in thousands, except shares)
Shares Value ------ --------- COMMON STOCKS, continued Information Technology, continued Texas Instruments, Inc.................. 25,000 $ 472 Thermo Electron Corp. (b)............... 3,900 87 Unisys Corp. (b)........................ 4,300 53 Veritas Software Corp. (b).............. 5,400 166 Waters Corp. (b)........................ 3,100 98 Xerox Corp. (b)......................... 2,700 29 Xilinx, Inc. (b)........................ 6,000 158 --------- 20,918 --------- Materials (2.6%) Air Products and Chemicals, Inc......... 6,000 279 Alcoa, Inc.............................. 11,200 311 Allegheny Technologies, Inc............. 1,000 8 Ball Corp............................... 700 35 Bemis Co., Inc.......................... 1,400 63 Boise Cascade Corp...................... 1,500 37 Cavco Industries, Inc. (b).............. 40 1 E.I. du Pont de Nemours & Co............ 16,978 745 Eastman Chemical Co..................... 2,000 73 Ecolab, Inc............................. 100 2 Engelhard Corp.......................... 3,400 89 Georgia-Pacific Corp.................... 3,300 72 Hercules, Inc. (b)...................... 1,400 16 International Flavors & Fragrances, Inc. 200 6 Louisiana Pacific Corp. (b)............. 1,300 16 MeadWestvaco Corp....................... 973 24 Monsanto Co............................. 3,431 79 Newmont Mining Corp..................... 10,600 382 Nucor Corp.............................. 1,000 49 Pactiv Corp. (b)........................ 4,200 83 PPG Industries, Inc..................... 4,500 254 Praxair, Inc............................ 4,300 278 Rohm & Haas Co.......................... 5,800 205 Sealed Air Corp. (b).................... 1,100 53 Temple-Inland, Inc...................... 1,400 65 United States Steel Corp................ 2,700 43 Worthington Industries, Inc............. 2,300 34 --------- 3,302 --------- Telecommunication Services (3.3%) AT&T Wireless Services, Inc. (b)........ 68,921 588 BellSouth Corp.......................... 29,400 749 Citizens Communications Co. (b)......... 600 7 SBC Communications, Inc................. 49,780 1,163 Sprint Corp............................. 23,600 333 Verizon Communications.................. 39,806 1,388 --------- 4,228 --------- Utilities (2.6%) AES Corp. (b)........................... 7,200 45 Allegheny Energy, Inc................... 1,600 13 Ameren Corp............................. 2,100 88 American Electric Power Co.............. 5,120 144 Calpine Corp. (b)....................... 5,000 29 CenterPoint Energy, Inc................. 4,000 32 Cinergy Corp............................ 2,200 75 CMS Energy Corp......................... 1,800 12
Continued
Shares Value --------- --------- COMMON STOCKS, continued Utilities, continued Consolidated Edison, Inc............. 2,800 $ 111 Constellation Energy Group........... 2,200 73 Dominion Resources, Inc.............. 4,004 241 DTE Energy Co........................ 2,200 79 Duke Energy Corp..................... 11,800 207 Dynergy, Inc., Class A (b)........... 4,600 15 Edison International (b)............. 4,300 71 El Paso Energy Corp.................. 7,853 55 Entergy Corp......................... 2,900 149 Exelon Corp.......................... 4,275 246 FirstEnergy Corp..................... 3,897 134 FPL Group, Inc....................... 2,400 148 KeySpan Corp......................... 2,100 71 Kinder Morgan, Inc................... 1,600 86 Nicor, Inc........................... 600 22 NiSource, Inc........................ 3,300 64 Peoples Energy Corp.................. 500 20 PG&E Corp. (b)....................... 5,400 116 Pinnacle West Capital Corp........... 1,200 41 PPL Corp............................. 2,150 85 Progress Energy, Inc................. 3,137 128 Progress Energy CVO.................. 500 --* Public Service Enterprise Group, Inc. 2,900 118 Sempra Energy........................ 2,700 75 Southern Co.......................... 9,400 266 TECO Energy, Inc..................... 2,200 27 TXU Corp............................. 4,300 87 Williams Cos., Inc................... 6,800 43 Xcel Energy, Inc..................... 5,285 77 --------- 3,293 --------- TOTAL COMMON STOCKS.................. 120,533 --------- INVESTMENT COMPANIES (6.2%) AmSouth Prime Money Market Fund...... 6,030,929 6,031 AmSouth U.S. Treasury Money Market Fund................................ 1,981,111 1,981 --------- TOTAL INVESTMENT COMPANIES........................... 8,012 ---------
Continued 48 ENHANCED MARKET FUND Schedule of Portfolio Investments July 31, 2003 (amounts in thousands, except shares)
Shares Value ------- -------- SHORT-TERM SECURITIES HELD AS COLLATERAL FOR SECURITIES LENDING (0.2%) Pool of Various Securities for AmSouth Mutual Funds -- Footnote 3 (Securities Lending).................................... 195,006 $ 195 -------- TOTAL SHORT-TERM SECURITIES HELD AS COLLATERAL FOR SECURITIES LENDING.......................... 195 -------- TOTAL INVESTMENTS (Cost $125,798) (a) -- 99.7%................ 128,740 Other assets in excess of liabilities -- 0.3% 390 -------- NET ASSETS -- 100.0%......................... $129,130 ========
-------- (a)Cost for federal income tax purposes is $127,681. The gross unrealized appreciation/(depreciation) on a tax basis is as follows: Unrealized appreciation.... $11,312 Unrealized depreciation.... (9,866) ------- Net unrealized appreciation $ 1,446 =======
(b)Represents non-income producing security. * Due to rounding, figure is below thousand - dollar threshold.
Open Futures Contracts ---------------------------------------- # of Contract Expiration Unrealized Contracts Value Date Gain/(Loss) --------- -------- ---------- ----------- S&P 500 Index 32 $7,914 9/19/03 $(4)
See notes to financial statements. LARGE CAP FUND Schedule of Portfolio Investments July 31, 2003 (amounts in thousands, except shares)
Shares Value ------- --------- COMMON STOCKS (99.8%) Advertising (0.3%) The Interpublic Group of Cos., Inc.... 100,000 $ 1,380 --------- Aerospace/Defense (3.0%) Boeing Co............................. 150,000 4,968 General Dynamics Corp................. 50,000 3,967 United Technologies Corp.............. 80,000 6,018 --------- 14,953 --------- Beverages (3.6%) Coca-Cola Co.......................... 200,000 8,994 PepsiCo, Inc.......................... 200,000 9,214 --------- 18,208 --------- Business Equipment & Services (1.3%) Paychex, Inc.......................... 200,000 6,506 --------- Computer Hardware (9.6%) Dell, Inc. (b)........................ 200,000 6,736 Hewlett-Packard Co.................... 700,000 14,819 IBM Corp.............................. 200,000 16,250 Network Appliance, Inc. (b)........... 500,000 7,990 Sun Microsystems, Inc. (b)............ 700,000 2,618 --------- 48,413 --------- Computer Software & Services (11.2%) Automatic Data Processing, Inc........ 300,000 11,124 BMC Software, Inc. (b)................ 150,000 2,115 Cisco Systems, Inc. (b)............... 500,000 9,760 EMC Corp. (b)......................... 700,000 7,448 Microsoft Corp........................ 500,000 13,200 Oracle Corp. (b)...................... 600,000 7,200 SunGard Data Systems, Inc. (b)........ 220,000 5,773 --------- 56,620 --------- Consumer Goods (4.6%) Altria Group, Inc..................... 100,000 4,001 Clorox Co............................. 100,000 4,339 Gillette Co........................... 200,000 6,152 Procter & Gamble Co................... 100,000 8,787 --------- 23,279 --------- Diversified Manufacturing (5.0%) General Electric Co................... 475,000 13,509 Honeywell International, Inc.......... 100,000 2,828 Illinois Tool Works, Inc.............. 100,000 6,965 Tyco International, Ltd............... 100,000 1,860 --------- 25,162 --------- Electronic Components (0.6%) Agilent Technologies, Inc. (b)........ 150,000 3,260 --------- Entertainment (1.5%) Walt Disney Co........................ 350,000 7,672 --------- Financial Services (1.8%) American Express Co................... 100,000 4,417 Citigroup, Inc........................ 100,000 4,480 --------- 8,897 --------- Food Distributors & Wholesalers (2.4%) Sysco Corp............................ 400,000 12,052 ---------
Continued 49 LARGE CAP FUND Schedule of Portfolio Investments July 31, 2003 (amounts in thousands, except shares)
Shares Value ------- --------- COMMON STOCKS, continued Food Products, Processing, & Packaging (0.6%) Sara Lee Corp........................ 150,000 $ 2,804 --------- Health Care (6.0%) Cardinal Health, Inc................. 120,000 6,570 Johnson & Johnson.................... 300,000 15,537 UnitedHealth Group, Inc.............. 160,000 8,334 --------- 30,441 --------- Health Care -- Drugs (2.7%) Amgen, Inc. (b)...................... 200,000 13,916 --------- Insurance (2.2%) AFLAC, Inc........................... 150,000 4,812 American International Group, Inc.... 100,000 6,420 --------- 11,232 --------- Machinery & Equipment (2.2%) Dover Corp........................... 300,000 10,983 --------- Media (1.2%) McGraw Hill Cos., Inc................ 100,000 6,078 --------- Medical Equipment & Supplies (3.6%) IMS Health, Inc...................... 200,000 3,868 Medtronic, Inc....................... 280,000 14,420 --------- 18,288 --------- Office Equipment & Services (1.1%) Pitney Bowes, Inc.................... 150,000 5,715 --------- Pharmaceuticals (13.5%) Abbott Laboratories.................. 250,000 9,813 Bristol-Myers Squibb Co.............. 150,000 3,930 Genentech, Inc. (b).................. 110,000 8,883 Merck & Co., Inc..................... 300,000 16,583 Pfizer, Inc.......................... 365,000 12,176 Schering-Plough Corp................. 450,000 7,641 Wyeth................................ 200,000 9,116 --------- 68,142 --------- Raw Materials (0.9%) Avery Dennison Corp.................. 80,000 4,317 --------- Restaurants (1.8%) McDonald's Corp...................... 400,000 9,204 --------- Retail (11.5%) Albertson's, Inc..................... 100,000 1,886 Bed Bath & Beyond, Inc. (b).......... 100,000 3,883 Dollar General Corp.................. 300,000 5,520 Gap, Inc............................. 300,000 5,397 Home Depot, Inc...................... 300,000 9,360 Lowe's Cos., Inc..................... 55,000 2,616 TJX Cos., Inc........................ 500,000 9,725 Wal-Mart Stores, Inc................. 250,000 13,977 Walgreen Co.......................... 200,000 5,984 --------- 58,348 --------- Semiconductors (6.1%) Applied Materials, Inc. (b).......... 700,000 13,650 Intel Corp........................... 400,000 9,980 Linear Technology Corp............... 200,000 7,376 --------- 31,006 ---------
Continued
Shares Value ---------- --------- COMMON STOCKS, continued Telecommunications -- Equipment (1.5%) Motorola, Inc........................... 300,000 $ 2,712 Nokia Oyj -- ADR........................ 200,000 3,060 Tellabs, Inc. (b)....................... 300,000 2,019 --------- 7,791 --------- TOTAL COMMON STOCKS..................... 504,667 --------- INVESTMENT COMPANIES (0.2%) AIM Liquid Assets Money Market Fund..... 630,018 630 AmSouth Prime Money Market Fund......... 613,222 613 --------- TOTAL INVESTMENT COMPANIES.............................. 1,243 --------- SHORT-TERM SECURITIES HELD AS COLLATERAL FOR SECURITIES LENDING (9.5%) Pool of Various Securities for AmSouth Mutual Funds -- Footnote 3 (Securities Lending)............................... 47,956,018 47,956 --------- TOTAL SHORT-TERM SECURITIES HELD AS COLLATERAL FOR SECURITIES LENDING..................... 47,956 --------- TOTAL INVESTMENTS (Cost $416,607) (a) -- 109.5%......... 553,866 Liabilities in excess of other assets -- (9.5)%................................. (47,800) --------- NET ASSETS -- 100.0%.................... $ 506,066 =========
-------- (a)Represents cost for financial reporting purposes, is substantially the same as cost for federal income tax purposes, and differs from value by unrealized appreciation of securities as follows: Unrealized appreciation.... $198,392 Unrealized depreciation.... (61,133) -------- Net unrealized appreciation $137,259 ========
(b)Represents non-income producing security. ADR -- American Depositary Receipt See notes to financial statements. 50 CAPITAL GROWTH FUND Schedule of Portfolio Investments July 31, 2003 (amounts in thousands, except shares)
Shares Value ------- --------- COMMON STOCKS (97.8%) Aerospace/Defense (3.4%) L-3 Communications Holdings, Inc. (b) 65,000 $ 3,190 Lockheed Martin Corp................. 20,000 1,047 United Technologies Corp............. 60,000 4,514 --------- 8,751 --------- Banking (1.9%) Bank of America Corp................. 35,000 2,890 Wells Fargo & Co..................... 40,000 2,021 --------- 4,911 --------- Beverages (1.3%) PepsiCo, Inc......................... 75,000 3,455 --------- Business Equipment & Services (3.1%) Cintas Corp.......................... 115,000 4,756 Paychex, Inc......................... 100,000 3,253 --------- 8,009 --------- Computer Hardware (5.7%) Dell, Inc. (b)....................... 160,000 5,389 IBM Corp............................. 78,500 6,378 Network Appliance, Inc. (b).......... 185,000 2,956 --------- 14,723 --------- Computer Software & Services (12.5%) Adobe Systems, Inc................... 41,000 1,340 Automatic Data Processing, Inc....... 43,500 1,613 Cisco Systems, Inc. (b).............. 365,000 7,126 EMC Corp. (b)........................ 80,000 851 First Data Corp...................... 90,000 3,398 Mercury Interactive Corp. (b)........ 15,000 590 Microsoft Corp....................... 335,000 8,845 Oracle Corp. (b)..................... 330,000 3,960 SunGard Data Systems, Inc. (b)....... 60,000 1,574 Veritas Software Corp. (b)........... 90,000 2,772 --------- 32,069 --------- Consumer Goods (2.2%) Procter & Gamble Co.................. 65,000 5,712 --------- Cosmetics/Toiletries (2.7%) Alberto-Culver Co., Class B.......... 75,000 4,172 Colgate-Palmolive Co................. 50,000 2,730 --------- 6,902 --------- Data Processing -- Management (0.5%) Fiserv, Inc. (b)..................... 35,000 1,366 --------- Diversified Manufacturing (6.4%) 3M Co................................ 20,000 2,804 General Electric Co.................. 275,000 7,821 Illinois Tool Works, Inc............. 85,000 5,920 --------- 16,545 --------- E-Commerce and Services (1.4%) eBay, Inc. (b)....................... 26,700 2,862 Yahoo!, Inc. (b)..................... 25,000 778 --------- 3,640 --------- Electronic Components (2.3%) Altera Corp. (b)..................... 75,000 1,443 Johnson Controls, Inc................ 29,500 2,850 QLogic Corp. (b)..................... 40,000 1,686 --------- 5,979 ---------
Continued
Shares Value ------- --------- COMMON STOCKS, continued Entertainment (0.5%) Walt Disney Co...................... 60,000 $ 1,315 --------- Financial Services (3.0%) American Express Co................. 60,000 2,650 Citigroup, Inc...................... 115,000 5,152 --------- 7,802 --------- Food Distributors & Wholesalers (3.1%) Costco Wholesale Corp. (b).......... 50,000 1,853 SYSCO Corp.......................... 200,000 6,026 --------- 7,879 --------- Health Care (4.2%) First Health Group Corp. (b)........ 92,500 2,388 Johnson & Johnson................... 75,000 3,884 UnitedHealth Group, Inc............. 86,000 4,480 --------- 10,752 --------- Health Care -- Drugs (1.6%) Amgen, Inc. (b)..................... 60,000 4,175 --------- Insurance (1.1%) AFLAC, Inc.......................... 15,500 497 American International Group, Inc... 15,000 963 Marsh & McLennan Cos., Inc.......... 26,000 1,290 --------- 2,750 --------- Medical Equipment & Supplies (5.0%) Alcon, Inc.......................... 15,000 765 Boston Scientific Corp. (b)......... 35,000 2,213 Medtronic, Inc...................... 90,000 4,635 Stryker Corp........................ 68,000 5,203 --------- 12,816 --------- Oil & Gas Exploration, Production, & Services (0.6%) BJ Services Co. (b)................. 20,000 685 Schlumberger Ltd.................... 20,000 901 --------- 1,586 --------- Pharmaceuticals (12.0%) Abbott Laboratories................. 66,500 2,610 Barr Laboratories, Inc. (b)......... 56,000 3,783 Forest Laboratories, Inc. (b)....... 60,500 2,897 Genentech, Inc. (b)................. 16,500 1,332 Gilead Sciences, Inc. (b)........... 34,000 2,331 Merck & Co., Inc.................... 92,500 5,113 Mylan Laboratories, Inc............. 60,000 2,026 Pfizer, Inc......................... 225,000 7,506 Wyeth............................... 70,000 3,191 --------- 30,789 --------- Restaurants (0.5%) Starbucks Corp. (b)................. 50,000 1,367 --------- Retail (13.5%) Bed Bath & Beyond, Inc. (b)......... 130,000 5,048 Best Buy Co., Inc. (b).............. 86,000 3,754 Chico's FAS, Inc. (b)............... 185,000 5,023 Dollar General Corp................. 63,300 1,165 Home Depot, Inc..................... 10,000 312
Continued 51 CAPITAL GROWTH FUND Schedule of Portfolio Investments July 31, 2003 (amounts in thousands, except shares)
Shares Value ---------- --------- COMMON STOCKS, continued Retail, continued Kohl's Corp. (b)....................... 40,000 $ 2,374 Lowe's Cos., Inc....................... 70,000 3,329 Staples, Inc. (b)...................... 40,000 806 Target Corp............................ 105,000 4,024 Wal-Mart Stores, Inc................... 100,000 5,591 Walgreen Co............................ 100,000 2,992 --------- 34,418 --------- Schools & Educational Services (1.8%) Apollo Group, Inc., Class A (b)........ 70,000 4,533 --------- Semiconductors (6.1%) Applied Materials, Inc. (b)............ 140,000 2,730 Intel Corp............................. 240,000 5,988 Linear Technology Corp................. 110,180 4,063 Novellus Systems, Inc. (b)............. 81,000 2,901 --------- 15,682 --------- Telecommunications (0.2%) Nextel Communications, Inc., Class A (b)........................... 35,000 639 --------- Transportation & Shipping (1.2%) United Parcel Service, Inc., Class B... 50,000 3,154 --------- TOTAL COMMON STOCKS.................... 251,719 --------- INVESTMENT COMPANIES (3.0%) AIM Liquid Assets Money Market Fund.... 3,650,190 3,650 AmSouth Prime Money Market Fund........ 419,872 420 Biotech HOLDRs Trust................... 20,500 2,765 Nasdaq -- 100 Index Tracking Stock..... 5,000 159 S & P Depositary Receipt............... 6,000 596 --------- TOTAL INVESTMENT COMPANIES............................. 7,590 --------- SHORT-TERM SECURITIES HELD AS COLLATERAL FOR SECURITIES LENDING (9.2%) Pool of Various Securities for AmSouth Mutual Funds -- Footnote 3 (Securities Lending).............................. 23,731,332 23,731 --------- TOTAL SHORT-TERM SECURITIES HELD AS COLLATERAL FOR SECURITIES LENDING.................... 23,731 --------- TOTAL INVESTMENTS (Cost $252,906) (a) -- 110.0%........ 283,040 Liabilities in excess of other assets -- (10.0)%..................... (25,756) --------- NET ASSETS -- 100.0%................... $ 257,284 =========
-------- (a)Cost for federal income tax purposes is $260,718. The gross unrealized appreciation/(depreciation) on a tax basis is as follows: Unrealized appreciation.... $25,558 Unrealized depreciation.... (3,235) ------- Net unrealized appreciation $22,323 =======
(b)Represents non-income producing security. See notes to financial statements. MID CAP FUND Schedule of Portfolio Investments July 31, 2003 (amounts in thousands, except shares)
Shares Value ------ --------- COMMON STOCKS (96.7%) Consumer Discretionary (16.8%) 99 Cents Only Stores (b)................ 1,700 $ 58 Abercrombie & Fitch Co., Class A (b).... 26,000 834 American Eagle Outfitters, Inc. (b)..... 11,200 248 Applebee's International, Inc........... 1,100 35 ArvinMeritor, Inc....................... 10,700 195 Bandag, Inc............................. 3,000 106 Barnes & Noble, Inc. (b)................ 10,100 242 Belo Corp., Class A..................... 35,400 790 BJ's Wholesale Club, Inc. (b)........... 21,800 425 Bob Evans Farms, Inc.................... 5,500 155 Borders Group, Inc. (b)................. 24,900 443 BorgWarner, Inc......................... 4,200 280 Brinker International, Inc. (b)......... 30,200 1,057 Callaway Golf Co........................ 11,900 184 Catalina Marketing Corp. (b)............ 8,400 141 CBRL Group, Inc......................... 7,800 275 CDW Corp. (b)........................... 3,500 168 Cheesecake Factory, Inc. (b)............ 700 23 Claire's Stores, Inc.................... 7,700 210 Clayton Homes, Inc...................... 21,400 267 Coach, Inc. (b)......................... 14,100 747 Copart, Inc. (b)........................ 14,500 136 D. R. Horton, Inc....................... 23,000 647 Dollar Tree Stores, Inc. (b)............ 31,200 1,144 Emmis Communications Corp., Class A (b). 8,400 168 Entercom Communications Corp. (b)....... 500 24 Federal Signal Corp..................... 7,500 150 Furniture Brands International, Inc. (b) 1,300 31 GTECH Holdings Corp..................... 16,400 633 Harte-Hanks, Inc........................ 27,600 530 Hispanic Broadcasting Corp. (b)......... 17,100 448 Krispy Kreme Doughnuts, Inc. (b)........ 1,400 61 Lancaster Colony Corp................... 5,700 229 Lear Corp. (b).......................... 20,600 1,071 Lennar Corp............................. 11,200 730 Macrovision Corp. (b)................... 7,600 179 Mandalay Resort Group................... 20,700 720 Media General, Inc., Class A............ 7,100 410 Michaels Stores, Inc.................... 21,200 819 Modine Manufacturing Co................. 5,300 113 Mohawk Industries, Inc. (b)............. 200 13 Nieman Marcus Group, Inc. (b)........... 1,900 75 Outback Steakhouse, Inc................. 200 7 Park Place Entertainment Corp. (b)...... 47,200 422 Payless ShoeSource, Inc. (b)............ 21,300 281 PETsMART, Inc. (b)...................... 43,700 867 Pier 1 Imports, Inc..................... 29,100 541 Reader's Digest Assoc., Class A......... 15,400 200 Ross Stores, Inc........................ 1,100 50 Ruby Tuesday, Inc....................... 10,100 230 Saks, Inc. (b).......................... 44,700 506 Six Flags, Inc. (b)..................... 14,500 69 Superior Industries International, Inc.. 4,300 186 Timberland Company, Class A (b)......... 5,800 260 Toll Brothers, Inc. (b)................. 11,100 294 Unifi, Inc. (b)......................... 8,500 58
Continued 52 MID CAP FUND Schedule of Portfolio Investments July 31, 2003 (amounts in thousands, except shares)
Shares Value ------ --------- COMMON STOCKS, continued Consumer Discretionary, continued United Rentals, Inc. (b)............... 12,000 $ 174 Washington Post Co., Class B........... 2,200 1,487 Westwood One, Inc. (b)................. 33,100 1,011 Williams-Sonoma, Inc. (b).............. 18,300 517 --------- 22,374 --------- Consumer Staples (3.0%) Church & Dwight Co., Inc............... 6,300 204 Constellation Brands, Inc., Class A (b) 14,200 410 Dean Foods Co. (b)..................... 9,000 269 Dial Corp.............................. 27,200 533 Dreyer's Grand Ice Cream, Inc.......... 5,500 430 Hormel Foods Corp...................... 5,700 124 Interstate Bakeries Corp............... 7,000 72 J.M. Smucker Co........................ 7,800 312 Longs Drug Stores Corp................. 6,000 117 PepsiAmericas, Inc..................... 23,600 317 Ruddick Corp........................... 7,300 120 Sensient Technologies Corp............. 7,400 158 Tyson Foods, Inc., Class A............. 55,200 625 Universal Corp......................... 3,900 166 Whole Foods Market, Inc. (b)........... 2,200 112 --------- 3,969 --------- Energy (7.2%) Cooper Cameron Corp. (b)............... 13,900 665 ENSCO International, Inc............... 31,800 797 Equitable Resources, Inc............... 9,700 375 FMC Technologies, Inc. (b)............. 10,300 231 Forest Oil Corp. (b)................... 14,100 322 Grant Prideco, Inc. (b)................ 30,900 332 Hanover Compressor Co. (b)............. 10,400 100 Helmerich & Payne, Inc................. 7,800 209 Murphy Oil Corp........................ 22,900 1,130 National-Oilwell, Inc. (b)............. 13,200 243 Noble Energy, Inc...................... 13,400 489 Pioneer Natural Resources Co. (b)...... 29,400 706 Pogo Producing Co...................... 9,600 406 Smith International, Inc. (b).......... 15,900 570 Tidewater, Inc......................... 14,800 395 Valero Energy Corp..................... 17,700 644 Varco International, Inc. (b).......... 15,200 263 Weatherford International, Ltd. (b).... 20,400 740 Western Gas Resources, Inc............. 5,200 197 XTO Energy, Inc........................ 39,732 767 --------- 9,581 --------- Financials (19.9%) A.G. Edwards, Inc...................... 12,500 462 Allmerica Financial Corp. (b).......... 8,300 185 AMB Property Corp...................... 13,000 365 American Financial Group, Inc.......... 10,800 247 AmeriCredit Corp. (b).................. 24,300 181 AmerUs Group Co........................ 6,100 187 Astoria Financial Corp................. 27,300 768 Bank of Hawaii Corp.................... 500 17 Banknorth Group, Inc................... 44,800 1,237
Continued
Shares Value ------ --------- COMMON STOCKS, continued Financials, continued City National Corp....................... 15,700 $ 790 Colonial BancGroup, Inc.................. 19,400 289 Commerce Bancorp, Inc.................... 200 8 Compass Bancshares, Inc.................. 20,100 679 E*TRADE Group, Inc. (b).................. 56,700 519 Everest Re Group, Ltd.................... 15,400 1,165 Fidelity National Financial, Inc......... 37,050 1,063 First American Corp...................... 19,600 474 FirstMerit Corp.......................... 13,300 317 Greater Bay Bancorp...................... 8,100 159 GreenPoint Financial Corp................ 27,300 1,373 HCC Insurance Holdings, Inc.............. 1,300 39 Hibernia Corp., Class A.................. 49,500 990 Horace Mann Educators Corp............... 6,400 99 Hospitality Properties Trust............. 9,800 309 Independence Community Bank Corp......... 9,000 293 IndyMac Bancorp, Inc..................... 8,700 212 Investment Technology Group, Inc. (b).... 7,500 139 Leucadia National Corp................... 9,100 353 Liberty Property Trust................... 12,000 416 M&T Bank Corp............................ 18,600 1,648 Mack-Cali Realty Corp.................... 9,000 331 Mercantile Bankshares Corp............... 10,800 440 MONY Group, Inc.......................... 7,400 206 National Commerce Financial Corp......... 60,200 1,476 New Plan Excel Realty Trust.............. 15,200 340 New York Community Bancorp, Inc.......... 22,400 670 Ohio Casualty Corp. (b).................. 9,500 141 Old Republic International Corp.......... 33,800 1,168 PMI Group, Inc........................... 28,300 938 Protective Life Corp..................... 20,000 583 Radian Group, Inc........................ 14,700 688 Roslyn Bancorp, Inc...................... 200 4 SEI Investments Co....................... 16,600 580 Silicon Valley Bancshares (b)............ 6,100 150 Sovereign Bancorp, Inc................... 3,100 56 StanCorp Financial Group, Inc............ 9,200 513 TCF Financial Corp....................... 23,100 1,055 United Dominion Realty Trust, Inc........ 16,800 303 Unitrin, Inc............................. 1,100 34 W.R. Berkley Corp........................ 17,400 892 Waddell & Reed Financial, Inc., Class A.. 12,600 332 Wilmington Trust Corp.................... 19,700 625 --------- 26,508 --------- Health Care (15.0%) Apogent Technologies, Inc. (b)........... 26,400 587 Apria Healthcare Group, Inc. (b)......... 17,200 447 Barr Laboratories, Inc. (b).............. 20,550 1,388 Beckman Coulter, Inc..................... 9,600 426 Charles River Laboratories International, Inc. (b)................................ 7,100 264 Community Health Systems, Inc. (b)....... 15,500 344 Covance, Inc. (b)........................ 18,800 389 Coventry Health Care, Inc. (b)........... 17,900 964 Cytyc Corp. (b).......................... 18,200 215 DENTSPLY International, Inc.............. 12,300 534
Continued 53 MID CAP FUND Schedule of Portfolio Investments July 31, 2003 (amounts in thousands, except shares)
Shares Value ------ --------- COMMON STOCKS, continued Health Care, continued Edwards Lifesciences Corp. (b).............. 18,100 $ 511 Express Scripts, Inc., Class A (b).......... 2,800 185 Gilead Sciences, Inc. (b)................... 19,100 1,309 Henry Schein, Inc. (b)...................... 12,700 742 Hillenbrand Industries, Inc................. 17,200 937 ICN Pharmaceuticals, Inc.................... 13,100 204 IDEC Pharmaceuticals Corp. (b).............. 7,900 267 IVAX Corp. (b).............................. 30,500 523 Millenium Pharmaceuticals, Inc. (b)......... 90,000 1,130 Mylan Laboratories, Inc..................... 48,250 1,630 Oxford Health Plans, Inc. (b)............... 22,900 978 PacifiCare Health Systems, Inc. (b)......... 5,600 313 Patterson Dental Co. (b).................... 10,700 572 Perrigo Co.................................. 10,900 177 Pharmaceutical Resources, Inc. (b).......... 5,100 289 Protein Design Labs, Inc. (b)............... 14,000 179 Sepracor, Inc. (b).......................... 13,200 320 SICOR, Inc. (b)............................. 36,800 718 Steris Corp. (b)............................ 18,100 416 Triad Hospitals, Inc. (b)................... 22,600 682 Universal Health Services, Inc. (b)......... 19,000 974 Varian Medical Systems, Inc. (b)............ 18,900 1,160 VISX, Inc. (b).............................. 8,100 189 --------- 19,963 --------- Industrials (12.8%) AGCO Corp. (b).............................. 23,600 453 Airborne, Inc............................... 7,600 171 Alaska Air Group, Inc. (b).................. 4,200 103 Alexander & Baldwin, Inc.................... 6,500 183 Ametek, Inc................................. 5,200 206 Banta Corp.................................. 4,000 135 Brink's Co.................................. 8,500 140 C.H. Robinson Worldwide, Inc................ 13,300 491 Career Education Corp. (b).................. 14,400 1,201 Carlisle Cos., Inc.......................... 9,600 420 Ceridian Corp. (b).......................... 23,300 435 Certegy, Inc. (b)........................... 10,400 283 CheckFree Corp. (b)......................... 3,400 91 ChoicePoint, Inc. (b)....................... 3,500 133 CNF, Inc.................................... 1,600 45 Corinthian Colleges, Inc. (b)............... 6,800 371 CSG Systems International, Inc. (b)......... 8,100 122 DeVry, Inc. (b)............................. 11,000 281 DST Systems, Inc. (b)....................... 37,500 1,378 Dun & Bradstreet Corp. (b).................. 11,700 481 Dycom Industries, Inc. (b).................. 7,500 128 Education Management Corp. (b).............. 700 41 EGL, Inc. (b)............................... 7,400 122 Energizer Holdings, Inc. (b)................ 27,500 942 Expeditors International of Washington, Inc. 16,300 553 Fastenal Co................................. 1,800 68 Flowserve Corp. (b)......................... 8,700 168 GATX Corp................................... 7,700 169 Granite Construction, Inc................... 6,500 117 Harsco Corp................................. 12,700 475 Herman Miller, Inc.......................... 900 20
Continued
Shares Value ------- --------- COMMON STOCKS, continued Industrials, continued HON Industries, Inc....................... 2,900 $ 96 Hubbell, Inc., Class B.................... 9,300 319 J.B. Hunt Transport Services, Inc. (b).... 700 33 Jacobs Engineering Group, Inc. (b)........ 300 13 Kelly Services, Inc., Class A............. 5,600 144 Kennametal, Inc........................... 5,500 212 Korn/Ferry International (b).............. 5,900 63 L-3 Communications Holdings, Inc. (b)..... 2,250 110 Manpower, Inc............................. 12,100 461 MPS Group, Inc. (b)....................... 16,100 151 Nordson Corp.............................. 5,300 128 Overseas Shipholding Group, Inc........... 5,400 119 Pentair, Inc.............................. 15,400 621 Quanta Services, Inc. (b)................. 10,700 81 Republic Services, Inc. (b)............... 48,000 1,162 Rollins, Inc.............................. 7,000 131 Sequa Corp., Class A (b).................. 1,600 63 Sotheby's Holdings, Inc., Class A (b)..... 9,600 85 SPX Corp. (b)............................. 25,300 1,191 Swift Transportation Co., Inc. (b)........ 3,600 79 Sylvan Learning Systems, Inc. (b)......... 6,300 168 Tecumseh Products Co., Class A............ 2,900 106 Trinity Industries, Inc................... 7,200 163 Valassis Communications, Inc. (b)......... 16,500 467 Viad Corp................................. 26,100 579 Werner Enterprises, Inc................... 10,000 238 York International Corp................... 6,200 182 --------- 17,091 --------- Information Technology (12.4%) 3Com Corp. (b)............................ 113,400 553 Activision, Inc. (b)...................... 15,600 182 ADTRAN, Inc............................... 400 20 Advanced Fibre Communications, Inc. (b)... 13,200 223 Advent Software, Inc. (b)................. 5,100 83 Affiliated Computer Services, Inc., Class A (b).............................. 9,200 456 Arrow Electronics, Inc. (b)............... 15,700 268 Ascential Software Corp. (b).............. 10,525 171 Atmel Corp. (b)........................... 73,100 235 Avnet, Inc. (b)........................... 36,800 530 Avocent Corp. (b)......................... 7,100 190 Cabot Microelectronics Corp. (b).......... 3,800 236 CommScope, Inc. (b)....................... 9,300 96 Credence Systems Corp. (b)................ 9,600 92 Cypress Semiconductor Corp. (b)........... 19,400 271 Diebold, Inc.............................. 1,800 80 Fair Issac Corp........................... 100 5 Fairchild Semiconductor Corp., Class A (b) 36,700 468 Gartner, Inc., Class B (b)................ 12,900 112 Harris Corp............................... 16,900 547 Imation Corp.............................. 11,100 396 InFocus Corp. (b)......................... 6,200 29 Integrated Device Technology, Inc. (b).... 16,300 188 International Rectifier Corp. (b)......... 19,400 535 Internet Security Systems, Inc. (b)....... 7,800 92 Intersil Corp., Class A (b)............... 39,700 978
Continued 54 MID CAP FUND Schedule of Portfolio Investments July 31, 2003 (amounts in thousands, except shares)
Shares Value ------ --------- COMMON STOCKS, continued Information Technology, continued Jack Henry & Associates, Inc......... 13,800 $ 258 Keane, Inc. (b)...................... 11,200 163 KEMET Corp. (b)...................... 13,500 146 Lam Research Corp. (b)............... 19,800 431 Lattice Semiconductor Corp. (b)...... 17,600 137 Legato Systems, Inc. (b)............. 18,200 171 LTX Corp. (b)........................ 7,700 76 Macromedia, Inc. (b)................. 9,800 201 McDATA Corp., Class A (b)............ 17,900 193 Mentor Graphics Corp. (b)............ 10,400 177 Micrel, Inc. (b)..................... 14,400 162 Microchip Technology, Inc............ 47,875 1,261 National Instruments Corp............ 1,200 43 Network Associates, Inc. (b)......... 49,100 555 Newport Corp. (b).................... 6,000 103 Overture Services, Inc. (b).......... 10,000 237 Plantronics, Inc. (b)................ 7,000 170 Plexus Corp. (b)..................... 6,600 95 Polycom, Inc. (b).................... 15,600 261 Powerwave Technologies, Inc. (b)..... 10,400 80 Quantum Corp. (b).................... 27,100 81 Retek, Inc. (b)...................... 8,300 60 Reynolds & Reynolds Co., Class A..... 10,600 307 RF Micro Devices, Inc. (b)........... 57,300 421 RSA Security, Inc. (b)............... 8,900 109 SanDisk Corp. (b).................... 1,400 79 Semtech Corp. (b).................... 11,500 190 Silicon Laboratories, Inc. (b)....... 7,700 283 Storage Technology Corp. (b)......... 33,800 900 Sybase, Inc. (b)..................... 29,700 466 Synopsys, Inc. (b)................... 1,100 69 Tech Data Corp. (b).................. 8,900 279 Titan Corp. (b)...................... 12,200 187 Transaction Systems Architects, Inc., Class A (b)......................... 5,600 68 TriQuint Semiconductor, Inc. (b)..... 20,800 94 Varian, Inc. (b)..................... 5,300 172 Vishay Intertechnology, Inc. (b)..... 50,100 666 Wind River Systems, Inc. (b)......... 12,400 77 --------- 16,464 --------- Materials (3.2%) Airgas, Inc.......................... 11,300 220 AK Steel Holding Corp. (b)........... 16,900 41 Albemarle Corp....................... 13,100 356 Arch Coal, Inc....................... 8,200 169 Bowater, Inc......................... 3,300 127 Carpenter Technology Corp............ 3,500 64 Crompton Corp........................ 17,900 112 Cytec Industries, Inc. (b)........... 6,100 236 Ferro Corp........................... 6,300 137 FMC Corp. (b)........................ 5,500 131 Glatfelter........................... 6,800 85 IMC Global, Inc...................... 7,800 57 Longview Fibre Co.................... 8,000 69 Lubrizol Corp........................ 16,100 537 Lyondell Chemical Co................. 7,800 117
Continued
Shares Value ------ --------- COMMON STOCKS, continued Materials, continued Martin Marietta Materials, Inc.... 900 $ 34 Minerals Technologies, Inc........ 3,200 160 Olin Corp......................... 9,100 170 Packaging Corp. of America (b).... 16,400 310 Peabody Energy Corp............... 8,200 252 Potlatch Corp..................... 4,500 120 Rayonier, Inc..................... 6,500 226 Sonoco Products Co................ 15,200 347 Valspar Corp...................... 1,800 79 Wausau-Mosinee Paper Corp......... 8,100 98 --------- 4,254 --------- Telecommunication Services (0.2%) Cincinnati Bell, Inc. (b)......... 34,400 194 Price Communications Corp. (b).... 8,600 109 Telephone & Data Systems, Inc..... 500 27 --------- 330 --------- Utilities (6.2%) AGL Resources, Inc................ 9,800 269 ALLETE, Inc....................... 13,500 362 Alliant Energy Corp............... 14,400 292 Aquila, Inc....................... 28,500 74 Black Hills Corp.................. 4,900 150 DPL, Inc.......................... 19,900 290 DQE, Inc.......................... 11,700 168 Energy East Corp.................. 22,800 472 Great Plains Energy, Inc.......... 10,900 311 Hawaiian Electric Industries, Inc. 5,700 242 IDACORP, Inc...................... 5,900 160 MDU Resources Group, Inc.......... 11,200 355 National Fuel Gas Co.............. 12,600 305 Northeast Utilities............... 21,300 358 NSTAR............................. 8,300 371 OGE Energy Corp................... 12,300 245 ONEOK, Inc........................ 11,400 238 Pepco Holdings, Inc............... 25,700 445 Philadelphia Suburban Corp........ 10,600 254 PNM Resources, Inc................ 6,100 163 Puget Energy, Inc................. 14,500 317 Questar Corp...................... 12,900 412 SCANA Corp........................ 17,400 578 Sierra Pacific Resources (b)...... 16,000 82 Vectren Corp...................... 10,600 246 Westar Energy, Inc................ 11,200 188 WGL Holdings, Inc................. 7,600 194 Wisconsin Energy Corp............. 18,200 512 WPS Resources Corp................ 5,000 199 --------- 8,252 --------- TOTAL COMMON STOCKS............... 128,786 ---------
Continued 55 MID CAP FUND Schedule of Portfolio Investments July 31, 2003 (amounts in thousands, except shares)
Shares Value --------- -------- INVESTMENT COMPANIES (3.1%) AmSouth Prime Money Market Fund......... 4,085,356 $ 4,085 AmSouth U.S. Treasury Money Market Fund................................... 2,621 3 -------- TOTAL INVESTMENT COMPANIES.............................. 4,088 -------- SHORT-TERM SECURITIES HELD AS COLLATERAL FOR SECURITIES LENDING (3.6%) Pool of Various Securities for AmSouth Mutual Funds -- Footnote 3 (Securities Lending)............................... 4,773,152 4,773 -------- TOTAL SHORT-TERM SECURITIES HELD AS COLLATERAL FOR SECURITIES LENDING..................... 4,773 -------- TOTAL INVESTMENTS (Cost $122,776) (a) -- 103.4%......... 137,647 Liabilities in excess of other assets -- (3.4)%................................. (4,539) -------- NET ASSETS -- 100.0%.................... $133,108 ========
-------- (a)Represents cost for financial reporting purposes, is substantially the same as cost for federal income tax purposes, and differs from value by unrealized appreciation of securities as follows: Unrealized appreciation.... $18,405 Unrealized depreciation.... (3,534) ------- Net unrealized appreciation $14,871 =======
(b)Represents non-income producing security.
Open Futures Contracts ----------------------------------------- # of Contract Expiration Unrealized Contracts Value Date Gain/(Loss) --------- -------- ---------- ----------- S&P 400 Index 17 $4,223 9/19/03 $67
See notes to financial statements. SMALL CAP FUND Schedule of Portfolio Investments July 31, 2003 (amounts in thousands, except shares)
Shares Value ------- --------- COMMON STOCKS (96.2%) Aerospace/Defense Equipment (2.1%) Engineered Support Systems, Inc......... 88,750 $ 3,927 --------- Apparel (11.8%) Aeropostale, Inc. (b)................... 80,800 2,113 Brown Shoe Co., Inc..................... 36,800 1,098 K-Swiss, Inc., Class A.................. 100,100 3,771 Kellwood Co............................. 111,800 3,673 Pacific Sunwear of California, Inc. (b). 150,100 4,555 Quiksilver, Inc. (b).................... 198,900 3,437 The Finish Line, Inc., Class A (b)...... 135,300 3,027 --------- 21,674 --------- Banking (1.8%) Hudson United Bancorp................... 66,100 2,415 Texas Regional Bancshares, Inc., Class A 24,300 801 --------- 3,216 --------- Business Services (2.5%) Kroll, Inc. (b)......................... 93,800 2,141 Tetra Tech, Inc. (b).................... 150,000 2,409 --------- 4,550 --------- Casino Services (1.6%) Shuffle Master, Inc. (b)................ 99,000 2,898 --------- Computer Software/Services (8.5%) Altiris, Inc. (b)....................... 133,900 2,606 Avid Technology, Inc. (b)............... 53,800 2,500 Magma Design Automation, Inc. (b)....... 102,600 2,047 NetScreen Technologies, Inc. (b)........ 26,000 562 PracticeWorks, Inc. (b)................. 72,700 1,546 Progress Software Corp. (b)............. 73,200 1,457 SRA International, Inc., Class A (b).... 90,400 3,162 Verint Systems, Inc. (b)................ 78,100 1,738 --------- 15,618 --------- Computers & Peripherals (2.1%) Advanced Digital Information Corp. (b).. 211,800 2,459 Hutchinson Technology, Inc. (b)......... 45,200 1,298 --------- 3,757 --------- Consumer Goods (1.0%) Flowers Foods, Inc...................... 20,700 421 Jarden Corp. (b)........................ 47,100 1,394 --------- 1,815 --------- Diagnostic Equipment (1.0%) IDEXX Laboratories, Inc. (b)............ 46,200 1,870 --------- Educational Services (3.3%) Corinthian Colleges, Inc. (b)........... 49,500 2,703 ITT Educational Services, Inc. (b)...... 87,000 3,413 --------- 6,116 --------- Electrical & Electronic (4.5%) Arrow Electronics, Inc. (b)............. 26,700 455 FLIR Systems, Inc. (b).................. 116,200 3,149 Power Integrations, Inc. (b)............ 72,800 2,099 Trimble Navigation, Ltd. (b)............ 91,100 2,492 --------- 8,195 ---------
Continued 56 SMALL CAP FUND Schedule of Portfolio Investments July 31, 2003 (amounts in thousands, except shares)
Shares Value ------- --------- COMMON STOCKS, continued Financial Services (3.4%) Portfolio Recovery Associates, Inc. (b) 61,000 $ 1,705 UCBH Holdings, Inc..................... 144,400 4,452 --------- 6,157 --------- Gaming (3.1%) GTECH Holdings Corp.................... 99,700 3,846 Station Casinos, Inc. (b).............. 59,700 1,731 --------- 5,577 --------- Health Care (6.9%) AMERIGROUP Corp. (b)................... 79,700 3,284 Centene Corp. (b)...................... 61,800 1,808 Mid Atlantic Medical Services, Inc. (b) 15,300 832 Odyssey Healthcare, Inc. (b)........... 61,500 2,583 Sierra Health Services, Inc. (b)....... 71,800 1,890 VistaCare, Inc., Class A (b)........... 77,300 2,215 --------- 12,612 --------- Insurance (1.6%) Odyssey Re Holdings Corp............... 20,300 374 ProAssurance Corp. (b)................. 88,500 2,491 --------- 2,865 --------- Internet Services (5.2%) CheckFree Corp. (b).................... 40,500 1,090 Digital Insight Corp. (b).............. 137,400 2,773 Digital River, Inc. (b)................ 102,500 2,202 United Online, Inc. (b)................ 107,500 3,367 --------- 9,432 --------- Machinery & Equipment (1.9%) Entegris, Inc. (b)..................... 240,600 3,445 --------- Manufacturing (0.3%) Maverick Tube Corp. (b)................ 34,100 563 --------- Medical Equipment & Supplies (7.0%) Advanced Neuromodulation Systems, Inc. (b).............................. 90,750 3,733 Cooper Cos., Inc....................... 19,900 697 Cyberonics, Inc. (b)................... 58,500 1,746 Gen-Probe, Inc. (b).................... 50,400 2,772 INAMED Corp. (b)....................... 13,500 896 Thoratec Corp. (b)..................... 208,400 3,136 --------- 12,980 --------- Medical Services (0.8%) VCA Antech, Inc. (b)................... 61,700 1,399 --------- Oil & Gas Exploration, Production, & Services (5.8%) Cimarex Energy Co. (b)................. 58,800 1,182 Comstock Resources, Inc. (b)........... 66,100 849 Energen Corp........................... 86,200 2,990 Evergreen Resources, Inc. (b).......... 16,400 816 Patina Oil & Gas Corp.................. 55,250 1,662 Southwestern Energy Co. (b)............ 29,200 444 St. Mary Land & Exploration Co......... 82,800 2,140 Unit Corp. (b)......................... 24,300 476 --------- 10,559 ---------
Continued
Shares Value ---------- --------- COMMON STOCKS, continued Pharmaceuticals (7.1%) aaiPharma, Inc. (b).................... 49,350 $ 901 Alpharma, Inc., Class A................ 91,200 1,810 Endo Pharmaceuticals Holdings, Inc. (b) 56,600 881 Eon Labs, Inc. (b)..................... 43,200 1,463 Kos Pharmaceuticals, Inc. (b).......... 153,500 5,241 Perrigo Co............................. 158,800 2,584 --------- 12,880 --------- Restaurants (2.9%) Applebee's International, Inc.......... 114,900 3,665 CBRL Group, Inc........................ 48,600 1,713 --------- 5,378 --------- Retail (6.9%) Claire's Stores, Inc................... 114,400 3,123 Guitar Center, Inc. (b)................ 115,100 3,879 Leapfrog Enterprises, Inc. (b)......... 99,200 3,006 Tractor Supply Co. (b)................. 47,400 2,625 --------- 12,633 --------- Semiconductors (1.1%) International Rectifier Corp. (b)...... 69,900 1,929 --------- Technology (1.0%) Dionex Corp. (b)....................... 45,100 1,838 --------- Transportation (1.0%) Pacer International, Inc (b)........... 90,500 1,767 --------- TOTAL COMMON STOCKS.................... 175,650 --------- INVESTMENT COMPANIES (1.8%) AmSouth Prime Money Market Fund........ 3,317,141 3,317 --------- TOTAL INVESTMENT COMPANIES............................. 3,317 --------- SHORT-TERM SECURITIES HELD AS COLLATERAL FOR SECURITIES LENDING (10.7%) Pool of Various Securities for AmSouth Mutual Funds -- Footnote 3 (Securities Lending).................. 19,646,890 19,647 --------- TOTAL SHORT-TERM SECURITIES HELD AS COLLATERAL FOR SECURITIES LENDING.................... 19,647 --------- TOTAL INVESTMENTS (Cost $170,204) (a) -- 108.7%........ 198,614 Liabilities in excess of other assets -- (8.7)%...................... (15,957) --------- NET ASSETS -- 100.0%................... $ 182,657 =========
-------- (a)Represents cost for financial reporting purposes, is substantially the same as cost for federal income tax purposes, and differs from value by unrealized appreciation of securities as follows: Unrealized appreciation.... $30,916 Unrealized depreciation.... (2,506) ------- Net unrealized appreciation $28,410 =======
(b)Represents non-income producing security. See notes to financial statements. 57 INTERNATIONAL EQUITY FUND Schedule of Portfolio Investments July 31, 2003 (amounts in thousands, except shares)
Shares Value ------- --------- COMMON STOCKS (97.4%) Australia (4.8%) AMP Ltd........................ 408,291 $ 1,292 APN News & Media, Ltd.......... 2,183 5 AXA Asia Pacific Holdings, Ltd. 452,900 710 BHP Steel, Ltd................. 210,920 570 Boral Ltd...................... 171,438 613 Brambles Industries, Ltd....... 14,503 46 CSR Ltd........................ 240,599 312 Insurance Australia Group, Ltd. 365,400 888 Lend Lease Corp., Ltd.......... 70,901 398 Lion Nathan, Ltd............... 142,100 498 Mayne Group, Ltd............... 214,659 420 Mirvac Group................... 158,800 450 Origin Energy, Ltd............. 170,048 454 PaperlinX Ltd.................. 124,518 408 Publishing & Broadcasting, Ltd. 168,201 1,120 Qantas Airways, Ltd............ 312,243 646 QBE Insurance Group, Ltd....... 161,673 1,003 Rinker Group, Ltd.............. 240,599 825 Santos Ltd..................... 155,030 629 Seven Network, Ltd............. 40,066 138 Southcorp Ltd.................. 197,966 370 WMC Resources, Ltd. (b)........ 300,100 724 --------- 12,519 --------- Austria (0.1%) Voestalpine AG................. 6,138 246 Wienerberger AG................ 7,637 140 --------- 386 --------- Belgium (0.9%) Algemene Maatschappij voor Nijverheidskredit NV......... 25,600 1,052 Bekaert NV..................... 5,300 252 Delhaize Group................. 22,000 707 Tessenderlo Chemie NV.......... 3,800 115 Umicore........................ 2,900 156 --------- 2,282 --------- Denmark (0.7%) Codan A/S (b).................. 3,750 83 Danisco A/S.................... 4,620 164 Danske Bank A/S................ 50,500 925 Jyske Bank A/S (b)............. 2,710 110 TDC A/S........................ 17,960 516 --------- 1,798 --------- Finland (1.9%) Fortum Oyj..................... 261,437 2,016 Kemira Oyj..................... 51,800 429 Kesko Oyj...................... 47,600 597 M-real Oyj..................... 85,300 701 Metso Corp..................... 24,388 233 Outokumpu Oyj.................. 73,450 670 Stora Enso Oyj, R Shares....... 13,400 169 UPM-Kymmene Oyj................ 7,800 127 --------- 4,942 ---------
Continued
Shares Value ------- --------- COMMON STOCKS, continued France (9.3%) Air France............................ 24,300 $ 363 Alstom (b)............................ 32,900 115 Assurances Generales de France........ 20,700 988 AXA................................... 195,592 3,369 BNP Paribas SA........................ 6,167 335 Cap Gemini SA (b)..................... 13,900 556 Ciments Francais SA................... 3,900 227 Compagnie de Saint-Gobain............. 36,800 1,467 Compagnie Gernerale des Etablissements Michelin............................. 15,400 558 Credit Agricole SA.................... 43,900 837 Esso S.A.F............................ 1,000 97 Euler & Hermes SA..................... 4,100 157 Faurecia.............................. 2,600 183 Financiere Marc de Lacharriere........ 3,900 107 France Telecom SA (b)................. 109,600 2,898 Havas SA.............................. 32,900 145 Imerys SA............................. 1,600 245 Lafarge SA............................ 14,350 962 Lagardere S.C.A....................... 15,000 669 Pechiney SA, A Shares................. 9,000 461 Pinault-Printemps Redoute SA.......... 500 40 PSA Peugeot Citroen................... 28,700 1,269 Remy Cointreau SA..................... 4,800 140 Renault SA............................ 29,800 1,659 Rexel SA.............................. 5,100 183 Rue Imperiale......................... 940 145 Schneider Electric SA................. 25,220 1,355 Scor SA (b)........................... 15,100 79 Societe Fonciere Lyonnaise............ 3,100 106 Societe Generale, A Shares............ 10,600 744 Sophia................................ 3,100 114 Suez SA............................... 27,100 433 Technip-Coflexip SA................... 2,300 196 Thomson............................... 30,300 477 Valeo SA.............................. 8,400 307 Vivendi Universal SA (b).............. 118,800 2,090 Wendel Investissement................. 6,000 184 --------- 24,260 --------- Germany (6.5%) AMG Generali Holding AG............... 2,300 138 Bayer AG.............................. 60,600 1,441 Bayerische Hypo-und Vereinsbank AG (b) 45,900 823 Celanese AG........................... 5,200 145 Commerzbank AG........................ 47,700 721 DaimlerChrysler AG.................... 85,000 3,052 Deutsche Bank AG...................... 54,700 3,553 Deutsche Lufthansa AG................. 25,900 329 E.On AG............................... 34,600 1,791 Fraport AG (b)........................ 8,200 209 Fresenius Medical Care AG............. 3,500 181 HeidelbergCement AG (b)............... 6,041 181 Heidelberger Druckmaschinen AG........ 6,600 189 Hochtief AG........................... 5,350 107 Infineon Technologies AG (b).......... 75,700 970 KarstadtQuelle AG..................... 4,700 98
Continued 58 INTERNATIONAL EQUITY FUND Schedule of Portfolio Investments July 31, 2003 (amounts in thousands, except shares)
Shares Value --------- --------- COMMON STOCKS, continued Germany, continued Linde AG.................................... 9,900 $ 422 MAN AG...................................... 12,850 256 Merck KGaA.................................. 4,200 114 MG Technologies AG.......................... 18,300 190 ThyssenKrupp AG............................. 45,200 589 TUI AG...................................... 15,650 232 Volkswagen AG............................... 27,850 1,194 --------- 16,925 --------- Greece (0.4%) Agricultural Bank of Greece (b)............. 30,900 274 Bank of Greece.............................. 1,200 149 Commercial Bank of Greece................... 12,300 262 Hellenic Petroleum SA....................... 37,800 279 Intracom SA................................. 13,000 104 --------- 1,068 --------- Hong Kong (1.5%) Cheung Kong Holdings, Ltd................... 46,000 302 Hang Lung Group, Ltd........................ 158,000 146 Henderson Land Development Co., Ltd......... 265,000 868 Hysan Development Co., Ltd.................. 156,952 134 Kerry Properties, Ltd....................... 141,713 151 New World Development Co., Ltd.............. 302,806 132 Shagri-La Asia, Ltd......................... 334,000 266 Sino Land Co., Ltd.......................... 600,374 225 Sun Hung Kai Properties, Ltd................ 19,000 113 Swire Pacific, Ltd.......................... 144,000 664 Wharf Ltd................................... 335,000 655 Wheelock & Co., Ltd......................... 312,000 282 --------- 3,938 --------- Ireland (0.8%) CRH PLC..................................... 67,518 1,271 Elan Corp. PLC (b).......................... 100,566 345 Irish Life & Permanent PLC.................. 34,165 377 --------- 1,993 --------- Italy (3.9%) Alitalia S.p.A (b).......................... 150,000 36 Banca Intesa S.p.A.......................... 641,650 2,153 Banca Nazionale del Lavoro S.p.A. (b)....... 450,000 749 Banca Popolare de Lodi S.c.r.l.............. 43,973 405 Banca Popolare di Milano S.c.r.l............ 80,000 360 Beni Stabili S.p.A.......................... 355,000 178 Buzzi Unicem S.p.A.......................... 20,000 160 Capitalia S.p.A. (b)........................ 355,000 699 e. Biscom (b)............................... 10,000 339 Fiat S.p.A. (b)............................. 90,000 597 Fondiaria-SAI S.p.A......................... 12,500 193 Ifil S.p.A. (b)............................. 53,000 125 Italcementi S.p.A........................... 37,000 425 Olivetti S.p.A. (b)......................... 1,837,500 2,230 Parmalat Finanziaria S.p.A.................. 130,000 412 Pirelli S.p.A. (b).......................... 400,000 410 Societa' Cattolica di Assicurazioni S.c.r.l. 9,900 259 Tiscali S.p.A. (b).......................... 74,000 406 --------- 10,136 ---------
Continued
Shares Value ------- --------- COMMON STOCKS, continued Japan (20.4%) 77th Bank, Ltd........................... 50,000 $ 208 Acom Co., Ltd............................ 23,700 894 Aioi Insurance Co., Ltd.................. 110,000 252 Aisin Seiki Co., Ltd..................... 42,200 615 Amada Co., Ltd........................... 44,000 150 Aoyama Trading Co., Ltd.................. 9,800 130 Asahi Breweries, Ltd..................... 42,000 246 Asahi Kasei Corp......................... 210,000 638 Asahi National Broadcasting Co., Ltd..... 146 172 Asatsu-dk, Inc........................... 6,800 136 Autobacs Seven Co., Ltd.................. 4,900 87 Awa Bank, Ltd............................ 31,000 152 Bank of Fukuoka, Ltd..................... 92,000 325 Bank of Kyoto, Ltd....................... 43,000 200 Bank of Nagoya, Ltd...................... 26,000 119 Benesse Corp............................. 14,200 237 Chiba Bank, Ltd.......................... 123,000 402 Chudenko Corp............................ 8,500 108 Chugoku Bank, Ltd........................ 35,000 247 Citizen Watch Co., Ltd................... 41,000 264 Coca-Cola West Japan Co., Ltd............ 15,300 247 Cosmo Oil Co., Ltd....................... 83,000 128 Dai Nippon Printing Co., Ltd............. 63,000 741 Daicel Chemical Industries, Ltd.......... 48,000 192 Daihatsu Motor Co., Ltd.................. 56,000 189 Dainippon Ink & Chemicals, Inc........... 115,000 229 Daishi Bank, Ltd......................... 50,000 164 Daiwa House Industry Co., Ltd............ 80,000 577 Denso Corp............................... 114,300 1,897 Ebara Corp............................... 40,000 159 Ezaki Glico Co., Ltd..................... 19,000 105 Fuji Electric Co., Ltd................... 95,000 194 Fuji Fire & Marine Insurance Co., Ltd.... 71,000 128 Fuji Heavy Industries, Ltd............... 108,000 530 Fuji Photo Film Co., Ltd................. 19,000 566 Fujikura Ltd............................. 50,000 179 Fujitsu Ltd.............................. 268,000 1,103 Fukuyama Transporting Co., Ltd........... 36,000 119 Furukawa Electric Co., Ltd............... 86,000 298 Gunma Bank, Ltd.......................... 74,000 303 Gunze Ltd................................ 31,000 111 Hachijuni Bank, Ltd...................... 79,000 301 Hanshin Electric Railway Co., Ltd........ 50,000 154 Higo Bank, Ltd........................... 33,000 157 Hitachi Cable, Ltd....................... 49,000 137 Hitachi Ltd.............................. 487,000 2,157 Hitachi Maxell, Ltd...................... 13,000 184 Hitachi Metals, Ltd...................... 47,000 141 Hokkoku Bank, Ltd........................ 46,000 213 House Foods Corp......................... 14,000 126 Hyakugo Bank, Ltd........................ 33,000 144 Hyakujushi Bank, Ltd..................... 47,000 282 Ishikawajima-Harima Heavy Industries Co., Ltd..................................... 189,000 224 Iyo Bank, Ltd............................ 47,000 268 Joyo Bank, Ltd........................... 126,000 337
Continued 59 INTERNATIONAL EQUITY FUND Schedule of Portfolio Investments July 31, 2003 (amounts in thousands, except shares)
Shares Value ------- --------- COMMON STOCKS, continued Japan, continued Juroku Bank, Ltd........................ 48,000 $ 186 Kagoshima Bank, Ltd..................... 17,000 71 Kamigumi Co., Ltd....................... 36,000 178 Kawasaki Heavy Industries, Ltd.......... 203,000 211 Kinden Corp............................. 35,000 116 Kirin Brewery Co., Ltd.................. 143,000 905 Kissei Pharmaceutical Co., Ltd.......... 9,000 129 Kobe Steel, Ltd. (b).................... 378,000 364 Kokusai Securities Co., Ltd............. 47,000 341 Kokuyo Co., Ltd......................... 18,700 167 Komatsu Ltd............................. 140,000 686 Komori Corp............................. 9,000 100 Kuraray Co., Ltd........................ 55,000 369 Makita Corp............................. 20,000 159 Marubeni Corp........................... 213,000 265 Marui Co., Ltd.......................... 56,000 538 Maruichi Steel Tube, Ltd................ 13,000 129 Matsushita Electric Industrial Co., Ltd. 328,000 3,878 Matsushita Electric Works, Ltd.......... 107,000 678 Meiji Seika Kaisha, Ltd................. 50,000 159 Michinoku Bank, Ltd..................... 20,000 111 Mitsubishi Gas Chemical Co., Inc........ 63,000 131 Mitsubishi Heavy Industries, Ltd........ 492,000 1,306 Mitsubishi Logistics Corp............... 22,000 133 Mitsubishi Materials Corp. (b).......... 165,000 208 Mitsubishi Tokyo Financial Group, Inc... 297 1,321 Mitsui Trust Holdings, Inc.............. 119,000 282 Mizuho Financial Group, Inc. (b)........ 1,376 1,233 Nanto Bank, Ltd......................... 36,000 116 NGK Insulators, Ltd..................... 29,000 161 NGK Spark Plug Co., Ltd................. 33,000 262 Nichicon Corp........................... 10,700 115 Nikko Cordial Corp...................... 152,000 657 Nippon Broadcasting System, Inc......... 4,500 144 Nippon Electric Glass Co., Ltd.......... 21,000 229 Nippon Meat Packers, Inc................ 33,000 311 Nippon Oil Corp......................... 221,000 902 Nippon Sheet Glass Co., Ltd............. 58,000 161 Nippon Shokubai Co., Ltd................ 25,000 150 Nishimatsu Construction Co., Ltd........ 36,000 111 Nissay Dowa General Insurance Co., Ltd.. 54,000 192 Nisshin Seifun Group, Inc............... 31,000 209 Nisshinbo Industries, Inc............... 28,000 125 NSK Ltd................................. 80,000 253 Obayashi Corp........................... 105,000 349 Onward Kashiyama Co., Ltd............... 25,000 224 Promise Co., Ltd........................ 19,500 709 Resona Holdings, Inc.................... 822,000 607 San-in Godo Bank, Ltd................... 23,000 157 Sanwa Shutter Corp...................... 18,000 65 Sanyo Shinpan Finance Co., Ltd.......... 5,000 159 Sapporo Hokuyo Holdings, Inc............ 48 221 Seino Transportation Co., Ltd........... 23,000 129 Sekisui Chemical Co., Ltd............... 71,000 247 Sekisui House, Ltd...................... 103,000 807 Shiga Bank, Ltd......................... 32,000 117
Continued
Shares Value ------- --------- COMMON STOCKS, continued Japan, continued Shimachu Co., Ltd...................... 6,700 $ 106 Shimizu Corp........................... 23,000 69 Shinko Securities Co., Ltd. (b)........ 107,000 215 Shizuoka Bank, Ltd..................... 109,000 685 Shohkoh Fund & Co., Ltd................ 1,500 152 Softbank Corp.......................... 41,600 1,201 Sumitomo Bakelite Co., Ltd............. 24,000 106 Sumitomo Corp.......................... 107,000 561 Sumitomo Electric Industries, Ltd...... 109,000 800 Sumitomo Forestry Co., Ltd............. 23,000 110 Sumitomo Metal Industries, Ltd......... 479,000 318 Sumitomo Metal Mining Co., Ltd......... 47,000 176 Sumitomo Realty & Development Co., Ltd. 54,000 256 Sumitomo Rubber Industries, Ltd........ 32,000 139 Sumitomo Trust & Banking Co., Ltd...... 121,000 439 Taiheiyo Cement Corp................... 138,000 218 Taiyo Yuden Co., Ltd................... 16,000 172 Takashimaya Co., Ltd................... 44,000 219 TDK Corp............................... 11,000 604 Teijin Ltd............................. 135,000 318 Teikoku Oil Co., Ltd................... 44,000 150 Toho Bank, Ltd......................... 16,000 65 Tokyo Broadcasting System, Inc......... 14,000 157 Tokyo Style Co., Ltd................... 13,000 105 Toppan Printing Co., Ltd............... 93,000 710 Toray Industries, Inc.................. 204,000 478 Tostem Inax Holding Corp............... 27,000 366 Toyo Seikan Kaisha, Ltd................ 31,000 297 Toyota Auto Body Co., Ltd.............. 11,000 116 Toyota Industries Corp................. 45,700 739 UFJ Holdings, Inc...................... 724 1,435 UNY Co., Ltd........................... 24,000 203 Wacoal Corp............................ 19,000 144 Yamaguchi Bank, Ltd.................... 26,000 211 Yamazaki Baking Co., Ltd............... 29,000 173 Yokohama Rubber Co., Ltd............... 45,000 116 --------- 53,138 --------- Netherlands (5.6%) ABN AMRO Holding NV.................... 94,100 1,808 Aegon NV............................... 168,598 2,188 DSM NV................................. 11,400 512 ING Groep NV........................... 185,300 3,752 Koninklijke Ahold NV................... 105,200 855 Koninklijke KPN NV (b)................. 231,600 1,588 Koninklijke Numico NV.................. 18,747 290 Koninklijke Philips Electronics NV..... 122,350 2,579 Koninklijke Vendex KBB NV.............. 5,700 59 NV Holdingsmaatschappij De Telegraaf... 3,200 54 Oce NV................................. 7,000 78 Vedior NV.............................. 13,100 148 VNU NV................................. 22,974 743 --------- 14,654 --------- New Zealand (0.2%) Auckland International Airport, Ltd.... 67,870 236 Carter Holt Harvey, Ltd................ 317,000 300 --------- 536 ---------
Continued 60 INTERNATIONAL EQUITY FUND Schedule of Portfolio Investments July 31, 2003 (amounts in thousands, except shares)
Shares Value ------- --------- COMMON STOCKS, continued Norway (0.4%) DnB Holding ASA....................... 57,600 $ 298 Norske Skogsindustrier ASA............ 27,000 464 Storebrand ASA (b).................... 68,000 299 --------- 1,061 --------- Portugal (0.3%) Portugal Telecom, SGPS, SA............ 110,300 740 Sonae, SGPS, SA (b)................... 148,000 78 --------- 818 --------- Singapore (0.8%) DBS Group Holdings, Ltd............... 102,000 661 Fraser & Neave, Ltd................... 14,000 77 Keppel Corp., Ltd..................... 49,000 141 Neptune Orient Lines, Ltd. (b)........ 82,000 78 Oversea-Chinese Banking Corp., Ltd.... 77,000 469 United Overseas Bank, Ltd............. 94,000 706 --------- 2,132 --------- Spain (3.6%) Acesa Infraestructuras SA............. 13,100 177 Banco Bilbao Vizcaya Argentaria SA.... 99,000 1,085 Banco de Andalucia SA................. 900 64 Banco de Sabadell SA.................. 9,300 160 Banco Pastor SA....................... 2,400 63 Banco Santander Central Hispano SA.... 247,900 2,232 Cementos Portland SA.................. 1,200 54 Corporacion Mapfre SA................. 8,100 93 Ebro Puleva SA........................ 7,000 65 Endesa SA............................. 55,000 872 Iberia Lineas Aereas de Espana SA..... 41,000 85 Inmobiliaria Colonial SA.............. 2,500 46 Inmobiliaria Urbis SA................. 5,800 42 Red Electrica de Espana............... 6,000 79 Repsol YPF SA......................... 63,400 1,017 Sociedad General de Aguas de Barcelona SA................................... 6,262 83 Sol Melia SA.......................... 5,700 36 Telefonica SA......................... 257,754 3,014 Vallehermoso SA....................... 6,900 78 --------- 9,345 --------- Sweden (2.1%) Drott AB, B Shares.................... 9,700 128 Gambro AB, A Shares................... 26,500 171 Gambro AB, B Shares................... 10,500 68 Holmen AB, B Shares................... 8,400 240 Industriforvaltnings Kinnevik AB, B Shares............................. 6,900 134 Nordea AB............................. 334,300 1,624 Skandia Forsakrings AB................ 108,400 338 Skandinaviska Enskilda Banken AB...... 74,300 805 Skanska AB, B Shares.................. 4,900 31 SSAB, Series A........................ 7,800 101 SSAB, Series B........................ 2,000 25 Tele2 AB, A Shares (b)................ 2,300 81 Tele2 AB, B Shares (b)................ 13,300 477 Trelleborg AB, B Shares............... 9,000 111
Continued
Shares Value ------- --------- COMMON STOCKS, continued Sweden, continued Volvo AB, A Shares................... 15,500 $ 365 Volvo AB, B Shares................... 33,900 830 --------- 5,529 --------- Switzerland (7.3%) Baloise Holding, Ltd................. 29,400 1,028 Ciba Specialty Chemicals AG.......... 9,400 636 Clariant AG (b)...................... 47,100 540 Compagnie Financiere Richemont AG.... 175,900 3,190 Credit Suisse Group.................. 130,500 4,102 Ems-Chemie Holding AG (b)............ 23 88 Givaudan SA.......................... 200 82 Holcim Ltd........................... 54,250 2,252 Luzerner Kantonalbank................ 2,393 289 PSP Swiss Property AG................ 4,000 469 Rieter Holding AG.................... 1,590 306 SIG Holding AG....................... 3,000 323 Swiss Life Holding (b)............... 10,820 1,269 Syngenta AG.......................... 40,600 2,234 Unaxis Holding AG.................... 7,000 630 Valora Holding AG.................... 1,430 287 Vontobel Holding AG.................. 14,200 251 Zurich Financial Services AG......... 8,200 1,018 --------- 18,994 --------- United Kingdom (25.9%) Abbey National PLC................... 409,396 3,562 Aggregate Industries PLC............. 310,752 437 Amvescap PLC......................... 96,000 721 Arriva PLC........................... 48,410 303 Associated British Foods PLC......... 126,000 1,080 Associated British Ports Holdings PLC 71,400 439 Aviva PLC............................ 548,000 4,546 BAA PLC.............................. 258,000 1,945 BAE Systems PLC...................... 731,996 1,815 Barratt Developments PLC............. 57,000 446 BBA Group PLC........................ 116,000 435 Bellway PLC.......................... 12,000 125 Berkeley Group PLC................... 35,610 487 Bradford & Bingley PLC............... 74,000 378 Brambles Industries PLC.............. 142,000 418 British Airways PLC (b).............. 298,000 828 British Land Co. PLC................. 135,071 1,088 Brixton PLC.......................... 55,200 205 Cable & Wireless PLC................. 657,646 1,226 Canary Wharf Group PLC............... 161,200 653 Celltech Group PLC (b)............... 45,000 248 Chelsfield PLC....................... 77,000 384 COLT Telecom Group PLC (b)........... 416,000 572 Corus Group PLC (b).................. 863,900 347 Debenhams PLC........................ 62,697 437 easyJet PLC (b)...................... 108,000 401 Friends Provident PLC................ 418,000 922 Galen Holdings PLC................... 41,000 408 George Wimpey PLC.................... 93,728 533 Granada PLC.......................... 619,505 996 Greene King PLC...................... 16,000 213
Continued 61 INTERNATIONAL EQUITY FUND Schedule of Portfolio Investments July 31, 2003 (amounts in thousands, except shares)
Shares Value ---------- --------- COMMON STOCKS, continued United Kingdom, continued Hammerson PLC........................... 76,100 $ 651 Hanson PLC.............................. 179,000 1,054 Hilton Group PLC........................ 436,100 1,376 Inchcape PLC............................ 11,000 194 InterContinental Hotels Group PLC (b)... 178,389 1,336 International Power PLC (b)............. 308,400 688 J Sainsbury PLC......................... 536,993 2,285 Lex Service PLC......................... 16,900 152 Liberty International PLC............... 75,374 774 Logica PLC.............................. 97,950 263 Millennium & Copthorne Hotels PLC....... 78,000 328 Mitchells & Butlers PLC (b)............. 178,389 686 mmO2 PLC (b)............................ 2,392,000 2,067 Pearson PLC............................. 174,000 1,631 Peninsular & Oriental Steam Navigation Co..................................... 162,000 600 Persimmon PLC........................... 52,339 440 Pilkington PLC.......................... 314,151 415 RMC Group PLC........................... 73,000 638 Rolls-Royce PLC......................... 450,100 1,103 Royal & Sun Alliance Insurance Group PLC.................................... 397,400 969 Safeway PLC............................. 255,211 1,080 Schroders PLC........................... 49,000 520 Scottish Power PLC...................... 351,325 2,050 Slough Estates PLC...................... 114,800 644 Stagecoach Group PLC.................... 364,000 472 Standard Chartered PLC.................. 186,028 2,401 Tate & Lyle PLC......................... 64,000 356 Taylor Woodrow PLC...................... 133,370 464 Trinity Mirror PLC...................... 80,510 622 Vodafone Group PLC...................... 6,573,300 12,467 WH Smith Group PLC...................... 62,000 398 Whitbread PLC........................... 81,000 950 Wilson Bowden PLC....................... 18,000 287 Woolworths Group PLC.................... 204,000 131 --------- 67,090 --------- TOTAL COMMON STOCKS..................... 253,544 --------- SHORT-TERM SECURITIES HELD AS COLLATERAL FOR SECURITIES LENDING (6.2%) Pool of Various Securities for AmSouth Mutual Funds -- Footnote 3 (Securities Lending)............................... 16,071,513 16,072 --------- TOTAL SHORT-TERM SECURITIES HELD AS COLLATERAL FOR SECURITIES LENDING..................... 16,072 --------- TOTAL INVESTMENTS (Cost $257,102) (a) -- 103.7%......... 269,616 Liabilities in excess of other assets -- (3.7)%................................. (9,359) --------- NET ASSETS -- 100.0%.................... $ 260,257 =========
Continued -------- (a)Cost for federal income tax purposes is $266,837. The gross unrealized appreciation/(depreciation) on a tax basis is as follows: Unrealized appreciation.... $ 30,706 Unrealized depreciation.... (20,068) -------- Net unrealized appreciation $ 10,638 ========
(b)Represents non-income producing security. PLC -- Public Limited Company The table below sets forth the diversification of the International Equity Fund investments by industry.
Industry Diversification Percent* ------------------------ -------- Advertising.................... 0.1% Aerospace/Defense.............. 1.1% Airlines....................... 1.9% Airports Development........... 0.1% Automobile..................... 5.4% Banking........................ 17.8% Beverages...................... 1.0% Building Products.............. 5.6% Chemicals...................... 2.9% Computer Systems............... 0.8% Diversified.................... 2.9% Education...................... 0.1% Electrical & Electronics....... 7.0% Energy Sources................. 1.1% Financial Services............. 3.0% Food & Household Products...... 1.4% Food Retailers................. 1.5% Forest Products & Paper........ 1.0% Hotels & Lodging............... 1.2% Insurance...................... 9.6% Machinery...................... 1.5% Materials & Commodities........ 2.8% Medical Products............... 0.3% Office Equipment............... 0.1% Oil & Gas Production & Services 2.3% Pharmaceutical................. 0.5% Photographic Products.......... 0.2% Publishing..................... 4.0% Real Estate.................... 4.0% Retail......................... 4.1% Telecommunications............. 11.0% Transportation................. 0.9% Water.......................... 0.2% ----- Total Common Stocks........ 97.4% =====
* Percentages indicated are based on net assets. See notes to financial statements. 62 BALANCED FUND Schedule of Portfolio Investments July 31, 2003 (amounts in thousands, except shares)
Shares Value ----------- --------- COMMON STOCKS (56.0%) Aerospace/Defense (2.0%) Boeing Co.................... $ 41,107 $ 1,361 Raytheon Co.................. 40,142 1,232 United Technologies Corp..... 8,780 661 --------- 3,254 --------- Apparel (0.4%) Liz Claiborne, Inc........... 19,548 673 --------- Auto Trucks & Parts (0.4%) PACCAR, Inc.................. 7,695 594 --------- Banking (2.3%) Bank of America Corp......... 33,106 2,733 U.S. Bancorp................. 37,139 911 --------- 3,644 --------- Chemicals -- Specialty (0.8%) Dow Chemical Co.............. 13,705 484 E.I. du Pont de Nemours & Co. 19,190 843 --------- 1,327 --------- Computer Hardware (3.8%) Dell, Inc. (b)............... 78,439 2,642 Hewlett-Packard Co........... 129,678 2,745 IBM Corp..................... 9,260 752 --------- 6,139 --------- Computer Software & Services (3.9%) Cisco Systems, Inc. (b)...... 233,554 4,559 Microsoft Corp............... 63,441 1,675 --------- 6,234 --------- Consumer Goods (2.1%) Newell Rubbermaid, Inc....... 13,319 315 Procter & Gamble Co.......... 35,598 3,128 --------- 3,443 --------- Distribution/Wholesale (0.3%) Genuine Parts Co............. 16,834 521 --------- Diversified Manufacturing (0.8%) Honeywell International, Inc. 31,581 893 Illinois Tool Works, Inc..... 6,447 449 --------- 1,342 --------- Entertainment (0.3%) Walt Disney Co............... 22,375 490 --------- Financial Services (10.8%) Bear Stearns Cos., Inc....... 7,474 501 Capital One Financial Corp... 26,695 1,279 CIT Group, Inc............... 41,795 1,165 Citigroup, Inc............... 84,083 3,766 Freddie Mac.................. 20,487 1,001 Goldman Sachs Group, Inc..... 42,246 3,681 H & R Block, Inc............. 31,143 1,320 J.P. Morgan Chase & Co....... 53,672 1,881 Moody's Corp................. 8,040 416 Washington Mutual, Inc....... 62,147 2,454 --------- 17,464 ---------
Continued
Shares Value ----------- --------- COMMON STOCKS, continued Food Products, Processing, & Packaging (1.8%) Sara Lee Corp....................... $ 155,301 $ 2,903 --------- Forest & Paper Products (0.8%) International Paper Co.............. 31,864 1,247 --------- Health Care (2.7%) Johnson & Johnson................... 13,521 700 WellPoint Health Networks, Inc. (b). 43,345 3,626 --------- 4,326 --------- Health Care -- Drugs (2.3%) Amgen, Inc. (b)..................... 54,041 3,760 --------- Industrial Automation -- Robotics (0.5%) Rockwell Automation, Inc............ 28,155 728 --------- Insurance (1.0%) AFLAC, Inc.......................... 48,380 1,552 --------- Media (0.3%) McGraw Hill Cos., Inc............... 7,028 427 --------- Medical Products (0.6%) Becton, Dickinson & Co.............. 16,589 608 Zimmer Holdings, Inc. (b)........... 8,113 388 --------- 996 --------- Multimedia (0.9%) AOL Time Warner, Inc. (b)........... 98,810 1,525 --------- Newspapers (0.3%) Gannett Co., Inc.................... 5,440 418 --------- Oil & Gas Exploration, Production, & Services (3.4%) BP PLC - ADR........................ 19,516 811 ChevronTexaco Corp.................. 20,881 1,506 Exxon Mobil Corp.................... 88,030 3,132 --------- 5,449 --------- Pharmaceuticals (3.1%) Bristol-Myers Squibb Co............. 46,603 1,221 Genentech, Inc. (b)................. 37,555 3,033 Merck & Co., Inc.................... 13,938 770 --------- 5,024 --------- Raw Materials (0.4%) Avery Dennison Corp................. 10,830 584 --------- Restaurants (2.5%) McDonald's Corp..................... 27,003 621 Outback Steakhouse, Inc............. 91,889 3,432 --------- 4,053 --------- Retail (2.3%) Dollar General Corp................. 67,967 1,252 Home Depot, Inc..................... 27,193 848 Limited Brands...................... 64,181 1,072 Office Depot, Inc. (b).............. 34,727 576 --------- 3,748 ---------
Continued 63 BALANCED FUND Schedule of Portfolio Investments July 31, 2003 (amounts in thousands, except shares)
Shares or Principal Amount Value ----------- --------- COMMON STOCKS, continued Semiconductors (0.4%) Texas Instruments, Inc................ $ 35,173 $ 664 --------- Telecommunications -- Equipment (0.6%) Harris Corp........................... 27,999 906 --------- Travel (0.7%) Carnival Corp......................... 34,466 1,183 --------- Utilities -- Electric & Gas (1.7%) American Electric Power Co., Inc...... 37,065 1,041 Dominion Resources, Inc............... 14,084 846 Southern Co........................... 29,763 846 --------- 2,733 --------- Utilities -- Telecommunications (1.8%) BellSouth Corp........................ 34,398 876 SBC Communications, Inc............... 40,583 948 Verizon Communications, Inc........... 32,023 1,116 --------- 2,940 --------- TOTAL COMMON STOCKS................... 90,291 --------- CORPORATE BONDS (17.5%) Aluminum (0.6%) Alcoa, Inc., 7.38%, 8/1/10............ 900 1,030 --------- Banking (3.4%) Branch Banking & Trust, 4.88%, 1/15/13....................... 500 489 Northern Trust Co., 7.10%, 8/1/09..... 1,000 1,148 SunTrust Banks, Inc., 7.38%, 7/1/06... 2,000 2,268 Wachovia Corp., 6.63%, 11/15/06....... 1,475 1,651 --------- 5,556 --------- Brokerage Services (0.6%) Lehman Brothers Holdings, Inc., 3.50%, 8/7/08........................ 1,000 978 --------- Consumer Goods (3.9%) Coca-Cola Co., 4.00%, 6/1/05.......... 1,000 1,037 Procter & Gamble Co., 5.25%, 9/15/03.. 2,000 2,010 Unilever Capital Corp., 6.88%, 11/1/05 2,000 2,197 Unilever Capital Corp., 7.13%, 11/1/10 800 922 --------- 6,166 --------- Data Processing -- Management (1.3%) First Data Corp., 6.75%, 7/15/05...... 2,000 2,179 --------- Electrical & Electronic (0.9%) General Electric Co., 5.00%, 2/1/13... 1,500 1,470 --------- Financial Services (2.0%) Boeing Capital Corp., 7.38%, 9/27/10.. 1,000 1,119 Commercial Credit Co., 7.88%, 7/15/04. 1,000 1,061 Ford Motor Credit Corp., 6.13%, 3/20/04....................... 1,000 1,021 --------- 3,201 --------- Food Products & Services (0.7%) Sysco Corp., 4.75%, 7/30/05........... 1,000 1,050 ---------
Continued
Shares or Principal Amount Value ----------- --------- CORPORATE BONDS, continued Insurance (1.9%) Prudential Funding LLC, 6.60%, 5/15/08 (c)................... $ 2,000 $ 2,222 St. Paul Cos., Inc., 5.75%, 3/15/07... 750 805 --------- 3,027 --------- Newspapers (0.4%) Times Mirror Co., 7.45%, 10/15/09..... 500 586 --------- Oil & Gas Exploration, Production, & Services (1.0%) Conoco Inc., 6.35%, 4/15/09........... 1,500 1,673 --------- Retail (0.8%) McDonald's Corp., 5.75%, 3/1/12....... 1,200 1,249 --------- TOTAL CORPORATE BONDS................. 28,165 --------- MUNICIPAL BONDS (2.6%) Illinois (2.6%) Chicago Public Building, 7.00%, 1/1/06 3,800 4,195 --------- TOTAL MUNICIPAL BONDS................. 4,195 --------- U.S. GOVERNMENT AGENCIES (7.0%) Fannie Mae (1.6%) 6.21%, 11/7/07........................ 2,300 2,556 --------- Freddie Mac (2.3%) 5.83%, 2/9/06......................... 2,000 2,165 6.25%, 3/5/12, Callable 3/5/07 @ 100.. 1,500 1,584 --------- 3,749 --------- Government National Mortgage Assoc. (3.1%) 6.00%, 6/15/33........................ 1,974 2,013 6.50%, 11/20/28-6/15/32............... 2,967 3,064 --------- 5,077 --------- TOTAL U.S. GOVERNMENT AGENCIES............................. 11,382 --------- U.S. TREASURY BONDS (5.1%) 7.50%, 11/15/16....................... 3,000 3,717 7.25%, 8/15/22........................ 1,500 1,828 6.25%, 8/15/23........................ 2,500 2,746 --------- TOTAL U.S. TREASURY BONDS............. 8,291 --------- U.S. TREASURY NOTES (4.9%) 3.25%, 5/31/04........................ 5,500 5,595 6.50%, 2/15/10........................ 2,000 2,304 --------- TOTAL U.S. TREASURY NOTES............. 7,899 --------- INVESTMENT COMPANIES (6.4%) AmSouth Prime Money Market Fund....... 4,668,599 4,669 AmSouth U.S. Treasury Money Market Fund................................. 5,679,306 5,679 --------- TOTAL INVESTMENT COMPANIES............................ 10,348 ---------
Continued 64 BALANCED FUND Schedule of Portfolio Investments July 31, 2003 (amounts in thousands, except shares)
Shares or Principal Amount Value ---------- -------- SHORT-TERM SECURITIES HELD AS COLLATERAL FOR SECURITIES LENDING (12.0%) Pool of Various Securities for AmSouth Mutual Funds -- Footnote 3 (Securities Lending).............................. 19,400,546 $ 19,401 -------- TOTAL SHORT-TERM SECURITIES HELD AS COLLATERAL FOR SECURITIES LENDING.................... 19,401 -------- TOTAL INVESTMENTS (Cost $158,553) (a) -- 111.5%......... 179,972 Liabilities in excess of other assets -- (11.5)%..................... (18,513) -------- NET ASSETS -- 100.0%................... $161,459 ========
-------- (a)Cost for federal income tax purposes is $159,235. The gross unrealized appreciation/(depreciation) on a tax basis is as follows: Unrealized appreciation.... $21,641 Unrealized depreciation.... (905) ------- Net unrealized appreciation $20,736 =======
(b)Represents non-income producing security. (c)Represents a restricted security, purchased under Rule 144A, which is exempt from registration under the Security Act of 1933, as amended. These securities have been deemed liquid under guidelines established by the Board of Trustees. ADR -- American Depositary Receipt. See notes to financial statements. STRATEGIC PORTFOLIOS: AGGRESSIVE GROWTH PORTFOLIO Schedule of Portfolio Investments July 31, 2003 (amounts in thousands, except shares)
Shares Value ------- ------- INVESTMENTS IN AFFILIATES (99.8%) Investment Companies (99.8%) AmSouth Capital Growth Fund, I Shares........ 451,325 $ 3,945 AmSouth Enhanced Market Fund, I Shares....... 532,120 5,257 AmSouth International Equity Fund, I Shares.................................... 300,194 2,621 AmSouth Large Cap Fund, I Shares............. 160,287 2,629 AmSouth Limited Term Bond Fund, I Shares.................................... 103,223 1,100 AmSouth Mid Cap Fund, I Shares............... 251,506 2,626 AmSouth Prime Money Market Fund, I Shares.................................... 275,862 276 AmSouth Select Equity Fund, I Shares......... 220,969 2,636 AmSouth Small Cap Fund, I Shares (b)......... 361,475 2,642 AmSouth Value Fund, I Shares................. 302,853 3,949 ------- TOTAL INVESTMENTS IN AFFILIATES.................................. 27,681 ------- TOTAL INVESTMENTS (Cost $24,325) (a) -- 99.8%................. 27,681 Other assets in excess of liabilities -- 0.2% 46 ------- NET ASSETS -- 100.0%......................... $27,727 =======
-------- (a)Represents cost for financial reporting purposes, is substantially the same as cost for federal income tax purposes, and differs from value by unrealized appreciation of securities as follows: Unrealized appreciation.... $3,395 Unrealized depreciation.... (39) ------ Net unrealized appreciation $3,356 ======
(b)Represents non-income producing security. See notes to financial statements. 65 STRATEGIC PORTFOLIOS: GROWTH PORTFOLIO Schedule of Portfolio Investments July 31, 2003 (amounts in thousands, except shares)
Shares Value ------- ------- INVESTMENTS IN AFFILIATES (99.7%) Investment Companies (99.7%) AmSouth Bond Fund, I Shares.................. 204,984 $ 2,322 AmSouth Capital Growth Fund, I Shares........ 313,282 2,738 AmSouth Enhanced Market Fund, I Shares....... 369,365 3,650 AmSouth Government Income Fund, I Shares.................................... 257,302 2,586 AmSouth International Equity Fund, I Shares.................................... 208,376 1,819 AmSouth Large Cap Fund, I Shares............. 111,261 1,825 AmSouth Limited Term Bond Fund, I Shares.................................... 243,101 2,591 AmSouth Mid Cap Fund, I Shares............... 174,580 1,823 AmSouth Prime Money Market Fund, I Shares.................................... 259,875 260 AmSouth Select Equity Fund, I Shares......... 153,383 1,830 AmSouth Small Cap Fund, I Shares (b)......... 250,913 1,834 AmSouth Value Fund, I Shares................. 210,222 2,741 ------- TOTAL INVESTMENTS IN AFFILIATES.................................. 26,019 ------- TOTAL INVESTMENTS (Cost $23,871) (a) -- 99.7%................. 26,019 Other assets in excess of liabilities -- 0.3% 83 ------- NET ASSETS -- 100.0%......................... $26,102 =======
-------- (a)Represents cost for financial reporting purposes, is substantially the same as cost for federal income tax purposes, and differs from value by unrealized appreciation of securities as follows: Unrealized appreciation.... $2,287 Unrealized depreciation.... (139) ------ Net unrealized appreciation $2,148 ======
(b)Represents non-income producing security. See notes to financial statements. STRATEGIC PORTFOLIOS: GROWTH AND INCOME PORTFOLIO Schedule of Portfolio Investments July 31, 2003 (amounts in thousands, except shares)
Shares Value --------- ------- INVESTMENTS IN AFFILIATES (99.8%) Investment Companies (99.8%) AmSouth Bond Fund, I Shares.................. 1,031,707 $11,689 AmSouth Capital Growth Fund, I Shares........ 796,434 6,961 AmSouth Enhanced Market Fund, I Shares....... 939,010 9,277 AmSouth Government Income Fund, I Shares.................................... 1,248,773 12,550 AmSouth International Equity Fund, I Shares.................................... 529,739 4,625 AmSouth Large Cap Fund, I Shares............. 282,852 4,639 AmSouth Limited Term Bond Fund, I Shares.................................... 1,179,851 12,576 AmSouth Mid Cap Fund, I Shares............... 443,822 4,634 AmSouth Prime Money Market Fund, I Shares.................................... 840,841 841 AmSouth Select Equity Fund, I Shares......... 389,935 4,652 AmSouth Small Cap Fund, I Shares (b)......... 637,879 4,663 AmSouth Value Fund, I Shares................. 534,433 6,969 ------- TOTAL INVESTMENTS IN AFFILIATES.................................. 84,076 ------- TOTAL INVESTMENTS (Cost $78,636) (a) -- 99.8%................. 84,076 Other assets in excess of liabilities -- 0.2% 168 ------- NET ASSETS -- 100.0%......................... $84,244 =======
-------- (a)Represents cost for financial reporting purposes, is substantially the same as cost for federal income tax purposes, and differs from value by unrealized appreciation of securities as follows: Unrealized appreciation.... $6,114 Unrealized depreciation.... (674) ------ Net unrealized appreciation $5,440 ======
(b)Represents non-income producing security. See notes to financial statements. 66 STRATEGIC PORTFOLIOS: MODERATE GROWTH AND INCOME PORTFOLIO Schedule of Portfolio Investments July 31, 2003 (amounts in thousands, except shares)
Shares Value ------- ------- INVESTMENTS IN AFFILIATES (99.8%) Investment Companies (99.8%) AmSouth Bond Fund, I Shares.................. 493,254 $ 5,589 AmSouth Capital Growth Fund, I Shares........ 242,309 2,118 AmSouth Enhanced Market Fund, I Shares....... 285,687 2,823 AmSouth Government Income Fund, I Shares.................................... 557,230 5,600 AmSouth International Equity Fund, I Shares.................................... 161,169 1,407 AmSouth Large Cap Fund, I Shares............. 86,055 1,411 AmSouth Limited Term Bond Fund, I Shares.................................... 526,476 5,611 AmSouth Mid Cap Fund, I Shares............... 135,029 1,410 AmSouth Prime Money Market Fund, I Shares.................................... 312,668 313 AmSouth Select Equity Fund, I Shares......... 118,635 1,415 AmSouth Small Cap Fund, I Shares (b)......... 194,070 1,419 AmSouth Value Fund, I Shares................. 162,597 2,120 ------- TOTAL INVESTMENTS IN AFFILIATES.................................. 31,236 ------- TOTAL INVESTMENTS (Cost $29,821) (a) -- 99.8%................. 31,236 Other assets in excess of liabilities -- 0.2% 64 ------- NET ASSETS -- 100.0%......................... $31,300 =======
-------- (a)Represents cost for financial reporting purposes, is substantially the same as cost for federal income tax purposes, and differs from value by unrealized appreciation of securities as follows: Unrealized appreciation.... $1,748 Unrealized depreciation.... (333) ------ Net unrealized appreciation $1,415 ======
(b)Represents non-income producing security. See notes to financial statements. GOVERNMENT INCOME FUND Schedule of Portfolio Investments July 31, 2003 (amounts in thousands, except shares)
Shares or Principal Amount Value ----------- --------- U.S. GOVERNMENT AGENCIES (76.6%) Fannie Mae (5.5%) 5.63%, 5/14/04...................... $ 500 $ 517 5.75%, 6/15/05...................... 250 268 3.00%, 8/7/06, Callable 8/7/03 @100. 4,000 4,001 6.44%, 8/14/07, MTN................. 500 559 6.00%, 5/15/08...................... 7,000 7,707 7.50%, 4/1/15 - 6/1/15.............. 1,427 1,530 8.00%, 7/1/15....................... 948 1,019 --------- 15,601 --------- Federal Farm Credit Bank (8.2%) 5.07%, 12/15/03..................... 9,000 9,135 3.88%, 12/15/04..................... 1,000 1,030 5.75%, 9/1/05, MTN.................. 500 537 5.70%, 9/3/08....................... 7,000 7,640 5.05%, 12/27/12, Callable 12/27/05 @100............................... 5,000 4,956 --------- 23,298 --------- Federal Home Loan Bank (8.8%) 3.38%, 5/14/04...................... 800 813 6.34%, 6/29/04...................... 750 785 4.13%, 11/15/04..................... 1,000 1,033 7.25%, 5/13/05...................... 10,000 10,949 5.50%, 8/15/08...................... 375 405 5.80%, 9/2/08....................... 4,000 4,392 5.82%, 3/30/09...................... 1,000 1,095 5.89%, 3/30/09...................... 5,000 5,493 --------- 24,965 --------- Freddie Mac (8.1%) 3.25%, 12/15/03 - 3/14/08........... 3,500 3,486 5.00%, 1/15/04...................... 7,000 7,125 5.50%, 8/1/08....................... 1,697 1,742 6.25%, 3/5/12, Callable 3/5/07 @ 100 2,000 2,113 6.00%, 5/1/16 - 8/1/18.............. 6,018 6,197 6.50%, 5/1/31....................... 816 838 7.00%, 6/1/31....................... 1,516 1,585 --------- 23,086 --------- Government National Mortgage Assoc. (28.6%) 5.00%, 12/15/17 - 6/15/18........... 23,438 23,629 5.50%, 2/15/14 - 2/20/32............ 13,205 13,437 6.00%, 5/15/16 - 6/15/31............ 18,069 18,593 6.50%, 7/15/14 - 9/15/16............ 6,176 6,460 6.75%, 4/15/26...................... 1,326 1,391 7.00%, 8/15/11 - 12/15/30........... 6,120 6,428 7.50%, 5/15/10 - 8/20/30............ 7,552 8,035 8.00%, 7/15/26 - 6/20/30............ 2,901 3,115 8.50%, 11/15/20 - 2/15/23........... 30 32 9.00%, 6/15/18 - 9/15/22............ 190 212 9.50%, 5/15/18 - 8/15/21............ 183 201 --------- 81,533 --------- Private Export Funding (6.9%) 6.31%, 9/30/04, Series C............ 2,000 2,113 6.45%, 9/30/04, Series H............ 1,000 1,058 5.34%, 3/15/06, Series M............ 990 1,062 5.53%, 4/30/06...................... 3,500 3,775 7.11%, 4/15/07, Series ZZ........... 1,200 1,364 6.49%, 7/15/07, Series B............ 2,000 2,238
Continued 67 GOVERNMENT INCOME FUND Schedule of Portfolio Investments July 31, 2003 (amounts in thousands, except shares)
Shares or Principal Amount Value ----------- --------- U.S. GOVERNMENT AGENCIES, continued Private Export Funding, continued 5.75%, 1/15/08.......................... $ 4,300 $ 4,702 5.87%, 7/31/08, Series D................ 3,000 3,300 --------- 19,612 --------- Sallie Mae (5.2%) 3.38%, 7/15/04.......................... 9,000 9,183 3.63%, 9/30/04, MTN..................... 3,000 3,075 5.25%, 3/15/06.......................... 2,300 2,461 --------- 14,719 --------- Tennessee Valley Authority (5.3%) 5.38%, 11/13/08......................... 3,850 4,144 5.63%, 1/18/11, Series A................ 5,000 5,333 6.75%, 11/1/25.......................... 5,000 5,550 --------- 15,027 --------- TOTAL U.S. GOVERNMENT AGENCIES............................... 217,841 --------- U.S. TREASURY NOTES (17.8%) 5.75%, 8/15/03 - 8/15/10................ 19,000 19,982 2.75%, 9/30/03 - 10/31/03............... 16,000 16,065 7.50%, 2/15/05.......................... 2,000 2,180 5.63%, 2/15/06.......................... 2,000 2,175 3.50%, 11/15/06......................... 1,000 1,029 4.38%, 5/15/07.......................... 1,500 1,584 3.25%, 8/15/07.......................... 7,500 7,589 --------- TOTAL U.S. TREASURY NOTES............... 50,604 --------- INVESTMENT COMPANIES (4.7%) AIM Treasury Money Market Fund.......... 13,157,735 13,158 AmSouth Treasury Reserve Money Market Fund............................ 200,100 200 --------- TOTAL INVESTMENT COMPANIES.............................. 13,358 --------- SHORT-TERM SECURITIES HELD AS COLLATERAL FOR SECURITIES LENDING (24.4%) Pool of Various Securities for AmSouth Mutual Funds -- Footnote 3 (Securities Lending)............................... 69,494,684 69,495 --------- TOTAL SHORT-TERM SECURITIES HELD AS COLLATERAL FOR SECURITIES LENDING..................... 69,495 --------- TOTAL INVESTMENTS (Cost $341,576) (a) -- 123.5%.......... 351,298 Liabilities in excess of other assets -- (23.5)%................................ (66,902) --------- NET ASSETS -- 100.0%.................... $ 284,396 =========
-------- (a)Represents cost for federal income tax and financial reporting purposes and differs from value by net unrealized appreciation of securities as follows: Unrealized appreciation.... $10,726 Unrealized depreciation.... (1,004) ------- Net unrealized appreciation $ 9,722 =======
MTN-- Medium Term Note See notes to financial statements. LIMITED TERM BOND FUND Schedule of Portfolio Investments July 31, 2003 (amounts in thousands, except shares)
Shares of Principal Amount Value ------------ --------- CORPORATE BONDS (49.1%) Automotive -- Finance (2.8%) Ford Motor Credit Co., 6.70%, 7/16/04. $ 3,500 $ 3,621 Toyota Motor Credit Corp., 5.65%, 1/15/07....................... 3,000 3,251 --------- 6,872 --------- Banking (5.3%) Bank of New York, 3.90%, 9/1/07....... 1,000 1,014 First Union Corp., 6.88%, 9/15/05..... 2,000 2,186 FleetBoston Financial Corp., 4.88%, 12/1/06....................... 2,000 2,110 National City Bank of Indiana, 2.38%, 8/15/06....................... 2,000 1,990 Northern Trust Co., 6.70%, 9/15/05.... 1,725 1,880 SunTrust Banks, Inc., 6.90%, 7/1/07... 510 575 SunTrust Banks, Inc., 6.25%, 6/1/08... 1,000 1,114 U.S. Bancorp, 2.75%, 3/30/06.......... 2,000 2,015 --------- 12,884 --------- Beverages (0.6%) Coca-Cola Co., 5.25%, 5/15/07......... 1,000 1,063 Diageo Capital PLC, 6.63%, 6/24/04.... 360 377 --------- 1,440 --------- Brokerage Services (4.4%) Lehman Brothers Holdings, Inc., 3.50%, 8/7/08........................ 2,000 1,955 Merrill Lynch & Co., 6.00%, 11/15/04.. 4,000 4,214 Morgan Stanley Group, Inc., 6.10%, 4/15/06....................... 3,500 3,793 Salomon Smith Barney Holdings, 6.63%, 11/15/03...................... 650 660 --------- 10,622 --------- Building Products (0.8%) Vulcan Materials Co., 5.75%, 4/1/04... 2,000 2,055 --------- Computers & Peripherals (0.9%) IBM Corp., 5.63%, 4/12/04, MTN........ 1,045 1,076 IBM Corp., 4.13%, 6/30/05............. 1,000 1,043 --------- 2,119 --------- Consumer Goods (2.2%) Procter & Gamble Co., 5.25%, 9/15/03.. 2,000 2,010 Unilever Capital Corp., 6.88%, 11/1/05 3,000 3,297 --------- 5,307 --------- Cosmetics/Personal Care (0.9%) Colgate-Palmolive Co., 5.34%, 3/27/06....................... 2,000 2,148 --------- Data Processing/Management (1.3%) First Data Corp., 4.70%, 11/1/06...... 3,000 3,173 --------- Electronic Components/Instruments (1.1%) Consolidated Edison, Inc., 3.63%, 8/1/08........................ 500 495 Emerson Electric Co., 7.88%, 6/1/05... 2,000 2,205 --------- 2,700 ---------
Continued 68 LIMITED TERM BOND FUND Schedule of Portfolio Investments July 31, 2003 (amounts in thousands, except shares)
Shares of Principal Amount Value ------------ --------- CORPORATE BONDS, continued Entertainment (0.4%) Walt Disney Co., 5.13%, 12/15/03, MTN................. $ 1,000 $ 1,015 --------- Financial Services (6.2%) American Express Credit Corp., 4.25%, 2/7/05, MTN................... 2,000 2,073 Associates Corp. N.A., 5.75%, 11/1/03. 1,000 1,011 Boeing Capital Corp., 5.65%, 5/15/06.. 2,000 2,138 General Electric Capital Corp., 5.00%, 2/15/07, MTN.................. 3,700 3,926 Household Netherlands, 6.20%, 12/1/03....................... 2,500 2,537 Norwest Financial, Inc., 6.70%, 9/22/04....................... 3,000 3,172 --------- 14,857 --------- Food Products & Services (1.4%) Hershey Foods Corp., 6.70%, 10/1/05... 1,710 1,872 Sysco Corp., 4.75%, 7/30/05........... 1,500 1,575 --------- 3,447 --------- Industrial Goods & Services (0.2%) 3M Co., 4.15%, 6/30/05, MTN........... 500 521 --------- Insurance (4.0%) AIG SunAmerica Institutional Funding, Ltd., 5.20%, 5/10/04 (b)............. 2,000 2,060 American General Finance, 5.75%, 11/1/03....................... 2,000 2,023 Marsh & McLennan Cos., Inc., 6.63%, 6/15/04....................... 750 783 Marsh & McLennan Cos., Inc., 5.38%, 3/15/07....................... 2,000 2,151 St. Paul Cos., Inc., 5.75%, 3/15/07... 2,500 2,685 --------- 9,702 --------- Newspapers (0.9%) New York Times, 7.63%, 3/15/05........ 2,000 2,178 --------- Oil & Gas Exploration, Production, & Services (3.2%) Amoco Co., 6.25%, 10/15/04............ 3,200 3,376 Chevron Corp., 6.63%, 10/1/04......... 2,000 2,106 Phillips Petroleum Co., 8.50%, 5/25/05 2,000 2,230 --------- 7,712 --------- Pharmaceuticals (3.0%) Abbott Laboratories, 5.63%, 7/1/06.... 2,000 2,176 Bristol-Myers Squibb Co., 4.75%, 10/1/06....................... 1,650 1,743 Eli Lilly & Co., 5.50%, 7/15/06....... 2,000 2,170 Merck & Co., Inc., 4.13%, 1/18/05..... 1,150 1,187 --------- 7,276 --------- Printing (0.4%) R.R. Donnelley & Sons, 5.00%, 11/15/06...................... 1,000 1,043 ---------
Continued
Shares of Principal Amount Value ------------ --------- CORPORATE BONDS, continued Restaurants (0.9%) McDonald's Corp., 5.38%, 4/30/07, MTN................. $ 2,000 $ 2,115 --------- Retail (5.6%) Lowe's Cos., Inc., 6.38%, 12/15/05... 1,000 1,090 May Department Stores Co., 7.15%, 8/15/04...................... 1,750 1,851 Sears Credit Account Master Trust, 6.75%, 9/16/09...................... 5,000 5,451 Sears Roebuck Acceptance Corp., 6.56%, 11/20/03..................... 850 863 Target Corp., 7.50%, 2/15/05......... 1,000 1,085 Target Corp., 3.38%, 3/1/08.......... 800 792 Wal-Mart Stores, Inc., 5.45%, 8/1/06. 2,000 2,169 --------- 13,301 --------- Tools (0.2%) Stanley Works, 5.75%, 3/1/04......... 500 513 --------- Utilities -- Electric & Gas (2.4%) Alabama Power Corp., 5.35%, 11/15/03..................... 3,250 3,286 Alabama Power Corp., 2.65%, 2/15/06.. 500 500 Cincinnati Gas & Electric Co., 6.45%, 2/15/04...................... 1,300 1,336 Smith Enron, 5.97%, 12/15/06......... 692 723 --------- 5,845 --------- TOTAL CORPORATE BONDS................ 118,845 --------- U.S. TREASURY NOTES (21.8%) 1.63%, 4/30/05....................... 43,000 43,000 2.00%, 5/15/06....................... 10,000 9,938 --------- TOTAL U.S. TREASURY NOTES............ 52,938 --------- U.S. TREASURY INFLATION PROTECTION BONDS (7.7%) 3.38%, 1/15/07....................... 17,373 18,681 --------- TOTAL U.S. TREASURY INFLATION PROTECTION BONDS............................... 18,681 --------- U.S. GOVERNMENT AGENCIES (13.7%) Fannie Mae (4.3%) 7.00%, 7/15/05....................... 5,000 5,479 3.50%, 10/15/07, Callable 10/15/04 @ 100............................... 5,000 4,966 --------- 10,445 --------- Federal Home Loan Bank (4.2%) 4.88%, 4/16/04....................... 10,000 10,263 --------- Freddie Mac (4.3%) 6.88%, 1/15/05....................... 5,000 5,375 2.50%, 12/4/06, Callable 6/4/04 @ 100 5,000 4,943 --------- 10,318 ---------
Continued 69 LIMITED TERM BOND FUND Schedule of Portfolio Investments July 31, 2003 (amounts in thousands, except shares)
Shares of Principal Amount Value ----------- -------- U.S. GOVERNMENT AGENCIES, continued Government National Mortgage Assoc. (0.9%) 7.50%, 4/15/09 - 8/15/11................ $ 638 $ 689 8.00%, 12/15/07 - 4/15/10............... 1,193 1,289 8.50%, 9/15/09 - 12/15/09............... 273 299 -------- 2,277 -------- TOTAL U.S. GOVERNMENT AGENCIES............................... 33,303 -------- INVESTMENT COMPANIES (7.0%) AmSouth Prime Money Market Fund......... 9,528,584 9,529 AmSouth U.S. Treasury Money Market Fund................................... 7,485,237 7,485 -------- TOTAL INVESTMENT COMPANIES.............................. 17,014 -------- SHORT-TERM SECURITIES HELD AS COLLATERAL FOR SECURITIES LENDING (25.8%) Pool of Various Securities for AmSouth Mutual Funds -- Footnote 3 (Securities Lending)............................... 62,685,950 62,686 -------- TOTAL SHORT-TERM SECURITIES HELD AS COLLATERAL FOR SECURITIES LENDING..................... 62,686 -------- TOTAL INVESTMENTS (Cost $297,724) (a) -- 125.1%.......... 303,467 Liabilities in excess of other assets -- 25.1%.................................. (60,879) -------- NET ASSETS -- 100.0%.................... $242,588 ========
-------- (a)Cost for federal income tax purposes is $298,483. The gross unrealized appreciation/(depreciation) on a tax basis is as follows: Unrealized appreciation.... $5,691 Unrealized depreciation.... (707) ------ Net unrealized appreciation $4,984 ======
(b)Represents a restricted security, purchased under Rule 144A, which is exempt from registration under the Security Act of 1933, as amended. These securities have been deemed liquid under guidelines established by the Board of Trustees. MTN -- Medium Term Note PLC -- Public Limited Company See notes to financial statements. BOND FUND Schedule of Portfolio Investments July 31, 2003 (amounts in thousands, except shares)
Shares or Principal Amount Value ------------- ---------- CORPORATE BONDS (51.0%) Aerospace/Defense (1.2%) Boeing Corp., 6.88%, 11/1/06....... $ 2,145 $ 2,346 United Technologies Corp., 7.13%, 11/15/10................... 5,000 5,711 ---------- 8,057 ---------- Aluminum (0.7%) Alcoa, Inc., 7.38%, 8/1/10......... 4,000 4,576 ---------- Automotive -- Finance (2.7%) Ford Motor Credit Co., 6.25%, 12/8/05.................... 3,485 3,597 Ford Motor Credit Co., 7.35%, 11/7/11, MTN............... 1,750 1,689 General Motors Acceptance Corp., 5.75%, 11/10/03................... 1,500 1,516 General Motors Acceptance Corp., 7.50%, 7/15/05.................... 3,000 3,214 General Motors Acceptance Corp., 6.15%, 4/5/07..................... 2,000 2,058 Toyota Motor Credit Corp., 5.65%, 1/15/07.................... 5,000 5,418 ---------- 17,492 ---------- Banking (7.8%) Bank One Corp., 7.00%, 7/15/05..... 3,157 3,441 Bank One, Texas, 6.25%, 2/15/08.... 1,000 1,095 Branch Banking & Trust, 4.88%, 1/15/13.................... 4,500 4,401 Fifth Third Bank, 6.75%, 7/15/05... 4,000 4,345 First Union Corp., 6.88%, 9/15/05.. 5,000 5,463 FleetBoston Financial Corp., 4.88%, 12/1/06.................... 2,100 2,216 J.P. Morgan & Co., 7.63%, 9/15/04.. 3,856 4,114 NationsBank Corp., 7.75%, 8/15/15.. 1,100 1,286 Northern Trust Co., 7.10%, 8/1/09.. 6,000 6,886 State Street Boston, 7.65%, 6/15/10 5,000 5,901 Suntrust Bank, 6.38%, 4/1/11....... 5,500 6,063 SunTrust Banks, Inc., 7.38%, 7/1/06 3,159 3,582 Wachovia Corp., 6.61%, 10/1/25..... 1,875 1,983 ---------- 50,776 ---------- Beverages (0.7%) Coca-Cola Co., 5.75%, 3/15/11...... 4,000 4,295 ---------- Brokerage Services (2.4%) Bear Stearns & Co., Inc., 6.63%, 10/1/04.................... 2,910 3,085 Bear Stearns & Co., Inc., 4.00%, 1/31/08.................... 2,800 2,827 Dean Witter Discover & Co., 6.50%, 11/1/05.................... 3,500 3,798 Lehman Brothers Holdings, Inc., 3.50%, 8/7/08..................... 6,000 5,865 ---------- 15,575 ----------
Continued 70 BOND FUND Schedule of Portfolio Investments July 31, 2003 (amounts in thousands, except shares)
Shares or Principal Amount Value ------------- ---------- CORPORATE BONDS, continued Building Products (0.6%) Vulcan Materials Co., 5.75%, 4/1/04 $ 2,000 $ 2,055 Vulcan Materials Co., 6.00%, 4/1/09 2,000 2,159 ---------- 4,214 ---------- Computers & Peripherals (0.8%) IBM Corp., 5.38%, 2/1/09........... 5,000 5,338 ---------- Consumer Goods (1.9%) Nike, Inc., 6.38%, 12/1/03......... 3,000 3,049 Nike, Inc., 5.50%, 8/15/06......... 3,500 3,802 Unilever Capital Corp., 7.13%, 11/1/10.................... 5,000 5,763 ---------- 12,614 ---------- Consumer Products (0.1%) Clorox Co., 6.13%, 2/1/11.......... 500 542 ---------- Cosmetics/Personal Care (1.0%) Colgate-Palmolive Co., 5.34%, 3/27/06.................... 4,400 4,725 Kimberly-Clark Corp., 7.10%, 8/1/07..................... 1,700 1,925 ---------- 6,650 ---------- Data Processing/Management (1.1%) First Data Corp., 4.70%, 11/1/06... 7,000 7,403 ---------- Electric -- Integrated (0.6%) Alabama Power Co., 7.13%, 8/15/04.. 2,000 2,117 Alabama Power Co., 7.13%, 10/1/07.. 1,700 1,918 ---------- 4,035 ---------- Electrical & Electronic (1.8%) General Electric Co., 5.00%, 2/1/13 12,000 11,764 ---------- Electronic Components/ Instruments (0.6%) Emerson Electric, 6.30%, 11/1/05... 1,500 1,629 Honeywell, Inc., 7.00%, 3/15/07.... 2,000 2,233 ---------- 3,862 ---------- Entertainment (0.6%) Walt Disney Co., 5.13%, 12/15/03, MTN.............. 4,143 4,205 ---------- Financial Services (5.0%) ASIF Global Financing, 3.85%, 11/26/07, (b).............. 5,000 5,015 Associates Corp. N.A., 5.75%, 10/15/03................... 2,000 2,018 Associates Corp. N.A., 5.75%, 11/1/03.................... 3,625 3,665 Boeing Capital Corp., 7.38%, 9/27/10.................... 6,251 6,999 Commercial Credit Co., 6.50%, 8/1/04..................... 3,000 3,151 Countrywide Home Loan, 6.84%, 10/22/04................... 2,125 2,255 Household Finance Corp., 6.50%, 1/24/06.................... 5,000 5,455
Continued
Shares or Principal Amount Value ------------- ---------- CORPORATE BONDS, continued Financial Services, continued Mellon Funding Corp., 6.40%, 5/14/11...................... $ 2,000 $ 2,198 Norwest Financial, Inc., 6.63%, 7/15/04...................... 2,000 2,098 ---------- 32,854 ---------- Food Products & Services (1.3%) Sara Lee Corp., 6.15%, 6/19/08, MTN................. 5,625 6,143 Sysco Corp., 4.75%, 7/30/05.......... 2,500 2,625 ---------- 8,768 ---------- Foreign Government (0.5%) British Columbia, 4.63%, 10/3/06..... 3,000 3,174 ---------- Industrial Goods & Services (0.6%) Rockwell International Corp., 6.63%, 6/1/05....................... 3,456 3,685 ---------- Insurance (4.8%) AIG SunAmerica Institutional Funding, Ltd., 5.20%, 5/10/04 (b)............ 1,875 1,931 Chubb Corp., 6.15%, 8/15/05.......... 1,000 1,074 Chubb Corp., 6.00%, 11/15/11......... 1,000 1,056 Hartford Life, Inc., 6.90%, 6/15/04.. 3,100 3,238 John Hancock, 5.63%, 12/1/08......... 5,000 5,338 Marsh & McLennan Cos., Inc., 5.38%, 3/15/07...................... 1,500 1,614 MetLife, Inc., 6.13%, 12/1/11........ 1,000 1,068 Prudential Funding LLC, 6.60%, 5/15/08 (c).................. 6,000 6,667 St. Paul Cos., Inc., 5.75%, 3/15/07.. 9,125 9,797 ---------- 31,783 ---------- Machinery -- Construction and Mining (0.2%) Caterpillar, Inc., 6.55%, 5/1/11..... 1,000 1,116 ---------- Manufacturing (0.3%) PPG Industries, Inc., 7.05%, 8/15/09. 2,000 2,253 ---------- Meat Packing Plants (1.2%) Hormel Foods Corp., 6.63%, 6/1/11.... 7,000 7,761 ---------- Newspapers (0.3%) New York Times, 7.63%, 3/15/05....... 2,000 2,178 ---------- Oil & Gas Exploration, Production, & Services (1.4%) Conoco Inc., 5.90%, 4/15/04.......... 1,500 1,549 Conoco Inc., 6.35%, 4/15/09.......... 1,000 1,115 Phillips Petroleum Co., 6.38%, 3/30/09...................... 2,000 2,225 Texaco Capital, 7.09%, 2/1/07........ 4,000 4,550 ---------- 9,439 ---------- Pharmaceuticals (2.7%) Abbott Laboratories, 5.63%, 7/1/06... 4,000 4,350 Eli Lilly & Co., 5.50%, 7/15/06...... 6,000 6,510 Pfizer Inc., 5.63%, 2/1/06........... 3,900 4,212 Pharmacia Corp., 5.75%, 12/1/05...... 2,600 2,815 ---------- 17,887 ----------
Continued 71 Bond Fund Schedule of Portfolio Investments July 31, 2003 (amounts in thousands, except shares)
Shares or Principal Amount Value ------------- ---------- CORPORATE BONDS, continued Restaurants (1.2%) McDonald's Corp., 5.38%, 4/30/07, MTN................ $ 2,000 $ 2,115 McDonald's Corp., 5.35%, 9/15/08.... 5,500 5,871 ---------- 7,986 ---------- Retail (2.7%) May Department Stores Co., 7.15%, 8/15/04..................... 1,000 1,058 May Department Stores Co., 17.90%, 0/15/07.................... 1,000 1,145 Sears Credit Account Master Trust, 6.75%, 9/16/09..................... 5,000 5,451 Target Corp., 7.50%, 2/15/05........ 2,000 2,170 Target Corp., 5.88%, 3/1/12......... 3,000 3,183 Wal-Mart Stores, Inc., 5.45%, 8/1/06 4,500 4,882 ---------- 17,889 ---------- Tools (0.3%) Stanley Works, 5.75%, 3/1/04........ 2,000 2,050 ---------- Utilities -- Electric & Gas (2.4%) Baltimore Gas & Electric, 7.50%, 1/15/07..................... 3,100 3,522 Cincinnati Gas & Electric Co., 6.45%, 2/15/04..................... 1,500 1,541 National Rural Utilities Corp., 6.38%, 10/15/04.................... 3,100 3,282 Smith Enron, 5.97%, 12/15/06........ 1,070 1,118 Virginia Electric & Power Co., 8.00%, 3/1/04...................... 2,500 2,597 Wisconsin Electric Power, 6.63%, 11/15/06.................... 3,500 3,881 ---------- 15,941 ---------- Utilities -- Telecommunications (1.5%) BellAtlantic Corp., 6.25%, 2/15/04.. 2,000 2,050 BellSouth Telecommunications, 6.50%, 6/15/05..................... 3,500 3,784 GTE California, Inc., 6.70%, 9/1/09. 1,500 1,667 Southwestern Bell Telephone, 6.63%, 4/1/05...................... 2,000 2,155 ---------- 9,656 ---------- TOTAL CORPORATE BONDS............... 335,818 ---------- MUNICIPAL BONDS (0.1%) Georgia (0.1%) Atlanta Downtown Development Lease Revenue Bond, 6.88%, 2/1/21........ 800 907 ---------- TOTAL MUNICIPAL BONDS............... 907 ---------- U.S. GOVERNMENT AGENCIES (18.2%) Fannie Mae (4.7%) 5.13%, 2/13/04...................... 10,600 10,826 7.13%, 3/15/07...................... 5,000 5,684 5.25%, 3/22/07...................... 14,000 14,376 ---------- 30,886 ----------
Continued
Shares or Principal Amount Value ------------- ---------- U.S. GOVERNMENT AGENCIES, continued Federal Home Loan Bank (0.5%) 4.88%, 4/16/04...................... $ 3,000 $ 3,079 ---------- Freddie Mac (4.5%) 6.88%, 1/15/05...................... 18,000 19,351 6.25%, 3/5/12, Callable 3/5/07 @ 100 10,000 10,563 ---------- 29,914 ---------- Government National Mortgage Assoc. (8.5%) 6.00%, 6/15/33...................... 7,128 7,266 6.50%, 8/15/11 - 6/15/31............ 34,913 36,128 7.00%, 9/15/11 - 5/15/32............ 11,533 12,112 7.50%, 8/15/11...................... 170 184 8.00%, 5/15/10...................... 114 123 ---------- 55,813 ---------- TOTAL U.S. GOVERNMENT AGENCIES........................... 119,692 ---------- U.S. TREASURY BILLS* (15.0%) 7.50%, 11/15/16..................... 34,000 42,129 6.25%, 8/15/23...................... 52,000 57,111 ---------- TOTAL U.S. TREASURY BILLS........... 99,240 ---------- U.S. TREASURY NOTES (13.8%) 1.63%, 4/30/05...................... 90,000 90,000 6.50%, 2/15/10...................... 1,150 1,325 ---------- TOTAL U.S. TREASURY NOTES........... 91,325 ---------- INVESTMENT COMPANIES (0.6%) AmSouth Prime Money Market Fund............................... 4,234,584 4,235 AmSouth U.S. Treasury Money Market Fund............................... 3,047 3 ---------- TOTAL INVESTMENT COMPANIES.......................... 4,238 ----------
Continued 72 Bond Fund Schedule of Portfolio Investments July 31, 2003 (amounts in thousands, except shares)
Shares or Principal Amount Value ----------- --------- SHORT-TERM SECURITIES HELD AS COLLATERAL FOR SECURITIES LENDING (29.0%) Pool of Various Securities for AmSouth Mutual Funds -- Footnote 3 (Securities Lending)................. 191,636,437 $ 191,636 --------- TOTAL SHORT-TERM SECURITIES HELD AS COLLATERAL FOR SECURITIES LENDING.............................. 191,636 --------- TOTAL INVESTMENTS (Cost $811,390) (a) -- 127.7%........ 842,856 Liabilities in excess of other assets -- (27.7)%.................... (182,848) --------- NET ASSETS -- 100.0%.................. $ 660,008 =========
-------- (a)Represents cost for financial reporting purposes, is substantially the same as cost for federal income tax purposes, and differs from value by unrealized appreciation of securities as follows: Unrealized appreciation.... $34,445 Unrealized depreciation.... (2,979) ------- Net unrealized appreciation $31,466 =======
(b)Represents a restricted security, purchased under Rule 144A, which is exempt from registration under the Security Act of 1933, as amended. These securities have been deemed liquid under guidelines established by the Board of Trustees. MTN -- Medium Term Note * Rates disclosed represent yield effective at purchase. See notes to financial statements. MUNICIPAL BOND FUND Schedule of Portfolio Investments July 31, 2003 (amounts in thousands, except shares)
Shares or Principal Amount Value ----------- --------- MUNICIPAL BONDS (95.2%) Alabama (37.9%) Alabama 21st Century Authority Tobacco Settlement Revenue, 5.13%, 12/1/05....... $ 1,000 $ 1,022 Alabama 21st Century Authority Tobacco Settlement Revenue, 5.25%, 12/1/06....... 1,000 1,028 Alabama State Agriculture & Mechanical University, Revenue, 4.55%, 11/1/09, Callable 5/1/08 @ 102, MBIA.............. 2,245 2,405 Alabama State Agriculture & Mechanical University, Revenue, 4.65%, 11/1/10, Callable 5/1/08 @ 102, MBIA.............. 2,355 2,493 Alabama State Agriculture & Mechanical University, Revenue, 6.50%, 11/1/25, Callable 11/1/05 @ 102, MBIA............. 2,035 2,299 Alabama State Judicial Building Authority, Judicial Facilities Project, 4.75%, 1/1/05, AMBAC..................... 3,700 3,876 Alabama State Judicial Building Authority, Judicial Facilities Project, 4.85%, 1/1/06, AMBAC..................... 3,880 4,149 Alabama State Public School & College Authority, 5.00%, 12/1/05, Callable 6/1/03 @ 103............................. 3,390 3,502 Alabama State Public School & College Authority, 5.13%, 11/1/14, Callable 11/1/08 @ 101.5, FSA..................... 8,000 8,431 Alabama State Public School & College Authority, Capital Improvement, 4.75%, 11/1/06, Callable 11/1/05 @ 101.......... 5,000 5,347 Alabama State Water Pollution Control Authority, Revolving Fund, Series B, 5.25%, 8/15/08, Callable 8/15/06 @ 100, AMBAC.................................... 1,095 1,187 Alabama State Water Pollution Control Authority, Revolving Fund, Series B, 5.38%, 8/15/10, Callable 8/15/06 @ 100, AMBAC.................................... 860 935 Alabama State Water Pollution Control Authority, Revolving Fund, Series B, 5.40%, 8/15/11, Callable 8/15/06 @ 100, AMBAC.................................... 1,840 2,002 Alabama State Water Pollution Control Authority, Revolving Fund, Series B, 5.50%, 8/15/16, Callable 8/15/06 @ 100, AMBAC.................................... 3,890 4,189 Alabama State, Series A, GO, 4.60%, 10/1/05........................... 3,500 3,734 Alabama State, Series E, GO, 4.00%, 9/1/08............................ 2,855 3,005 Alabama State, Series E, GO, 4.00%, 9/1/09............................ 4,210 4,382 Athens, Warrants, GO, 1.85%, 2/1/06, MBIA...................... 680 678 Athens, Warrants, GO, 2.35%, 2/1/07, MBIA...................... 690 687
Continued 73 MUNICIPAL BOND FUND Schedule of Portfolio Investments July 31, 2003 (amounts in thousands, except shares)
Shares or Principal Amount Value ----------- --------- MUNICIPAL BONDS, continued Alabama, continued Auburn University, University Revenues, General Fee, 5.00%, 6/1/13, Callable 6/1/12 @ 100, AMBAC.................... $ 4,800 $ 5,093 Auburn University, University Revenues, General Fee, Series A, 5.50%, 6/1/12, Callable 6/1/11 @ 100, MBIA............ 2,125 2,332 Birmingham, GO, 4.90%, 7/1/06........... 1,500 1,624 Birmingham, Capital Improvements, Series A, GO, 4.75%, 10/1/10, Callable 4/1/08 @ 102.................. 1,340 1,426 Birmingham, Capital Improvements, Series A, GO, 4.85%, 10/1/11, Callable 4/1/08 @ 102.................. 1,430 1,511 Birmingham, Capital Improvements, Series B, GO, 4.80%, 10/1/08, Callable 4/1/07 @ 102.................. 1,040 1,127 Birmingham, Industrial Water Board, Industrial Water Supply, 5.30%, 3/1/04, ETM..................... 1,100 1,128 Birmingham, Industrial Water Board, Industrial Water Supply, 5.40%, 3/1/05, Callable 3/1/04 @ 101, ETM............. 1,000 1,063 Birmingham, Industrial Water Board, Industrial Water Supply, 5.50%, 3/1/06, Prerefunded 3/1/05 @ 100............... 1,300 1,384 Birmingham, Industrial Water Board, Industrial Water Supply, 6.20%, 7/1/08, Prerefunded 1/1/07 @ 100............... 2,305 2,525 Birmingham, Special Care Facilities Funding Authority, Series D, 4.95%, 11/1/14, Prerefunded 11/1/07 @ 100..... 2,585 2,828 Clark & Mobile County, Gas District, 5.60%, 12/1/17, Callable 12/1/06 @ 102, MBIA................................... 1,045 1,129 Decatur, Warrants, Series A, GO, 2.25%, 12/1/04......................... 180 183 Decatur, Warrants, Series A, GO, 2.25%, 12/1/05......................... 435 442 Decatur, Warrants, Series A, GO, 2.40%, 12/1/06......................... 205 207 Decatur, Warrants, Series A, GO, 2.50%, 12/1/07......................... 210 209 Decatur, Warrants, Series B, GO, 2.25%, 12/1/05......................... 215 219 Decatur, Warrants, Series B, GO, 2.40%, 12/1/06......................... 100 101 Decatur, Warrants, Series B, GO, 2.50%, 12/1/07......................... 140 139 Decatur, Warrants, Series C, GO, 2.50%, 8/1/05.......................... 245 250 Decatur, Warrants, Series C, GO, 2.88%, 8/1/06.......................... 200 205 Decatur, Warrants, Series C, GO, 2.88%, 8/1/07.......................... 220 223
Continued
Shares or Principal Amount Value ----------- --------- MUNICIPAL BONDS, continued Alabama, continued Decatur, Warrants, Series D, GO, 2.50%, 8/1/05........................... $ 580 $ 592 Decatur, Warrants, Series D, GO, 2.88%, 8/1/06........................... 590 605 Decatur, Warrants, Series D, GO, 2.88%, 8/1/07........................... 610 618 Dothan, GO, 5.05%, 9/1/09, FSA........... 905 994 Dothan, GO, 5.10%, 9/1/10, Callable 9/1/09 @ 101, FSA....................... 1,515 1,648 Florence Water, Series B, 4.70%, 12/1/13, Callable 12/1/08 @ 102, FSA............. 1,025 1,059 Florence, Warrants, Series A, GO, 4.35%, 12/1/07.......................... 390 419 Florence, Warrants, Series A, GO, 2.40%, 9/1/08........................... 1,370 1,328 Florence, Warrants, Series A, GO, 4.40%, 12/1/08.......................... 405 435 Florence, Warrants, Series A, GO, 4.50%, 12/1/09.......................... 425 455 Florence, Warrants, Series A, GO, 4.60%, 12/1/10, Callable 12/1/08 @...... 445 472 Florence, Warrants, Series B, GO, 4.35%, 12/1/07, FSA..................... 790 849 Florence, Warrants, Series B, GO, 4.40%, 12/1/08, FSA..................... 825 886 Florence, Warrants, Series B, GO, 4.50%, 12/1/09, Callable 12/1/08 @ 102, FSA.... 865 925 Florence, Warrants, Series B, GO, 4.60%, 12/1/10, Callable 12/1/08 @ 102, FSA.... 900 954 Homewood Board of Education, Warrants, Capital Outlay, 4.00%, 2/1/10, FSA...... 1,085 1,109 Homewood Board of Education, Warrants, Capital Outlay, 4.00%, 2/1/11, FSA...... 1,000 1,009 Homewood Board of Education, Warrants, Capital Outlay, 4.00%, 2/1/12, FSA...... 1,010 1,007 Huntsville, Series A, GO, 4.75%, 11/1/18, Callable 11/1/08 @ 101.................. 1,445 1,443 Huntsville Electric, 4.60%, 12/1/09, Callable 12/1/07 @ 102.................. 550 589 Huntsville Electric, 4.70%, 12/1/10, Callable 12/1/07 @ 102.................. 660 698 Huntsville Electric, 4.80%, 12/1/11, Callable 12/1/07 @ 102.................. 680 716 Huntsville, Warrants, Series B, GO, 4.00%, 11/1/05.......................... 3,120 3,293 Huntsville, Warrants, Series B, GO, 4.00%, 11/1/06.......................... 3,245 3,446 Huntsville, Warrants, Series B, GO, 4.10%, 11/1/07.......................... 3,380 3,595 Huntsville, Water Treatment Systems, Series A, GO, 5.13%, 5/1/20, Callable 5/1/12 @ 102, OID.............. 1,895 1,926
Continued 74 MUNICIPAL BOND FUND Schedule of Portfolio Investments July 31, 2003 (Amounts in thousands, except shares)
Shares or Principal Amount Value ----------- --------- MUNICIPAL BONDS, continued Alabama, continued Jefferson County, Warrants, GO, 5.10%, 2/15/10, FSA..................... $ 1,000 $ 1,086 Madison Water & Wastewater Board, Water & Sewer Revenue, 4.60%, 12/1/11, AMBAC.......................... 725 755 Mobile, Warrants, GO, 6.50%, 2/15/05, AMBAC................................... 1,630 1,755 Mobile, Warrants, GO, 6.50%, 2/15/06, AMBAC................................... 1,685 1,872 Mobile, Warrants, GO, 4.85%, 2/15/09..... 1,765 1,867 Montgomery Downtown Redevelopment Authority, Lease Revenue, 5.00%, 10/1/08.......................... 1,895 2,083 Montgomery, Warrants, GO, 5.00%, 5/1/11, AMBAC.................... 1,530 1,645 Montgomery, Warrants, GO, 5.25%, 5/1/12, AMBAC.................... 2,545 2,770 Montgomery, Waterworks & Sanitation Sewer Board, Water & Sewer Systems Revenue, 5.50%, 9/1/08, Callable 9/1/06 @ 101, AMBAC............................ 3,000 3,300 Montgomery, Waterworks & Sanitation Sewer Board, Water & Sewer Systems Revenue, 5.25%, 9/1/18, Callable 9/1/11 @ 101, AMBAC............................ 4,125 4,300 Shelby County Board of Education, Warrants, Capital Outlay, 4.80%, 2/1/10, Callable 2/1/09 @ 101, AMBAC............ 1,005 1,073 Talladega County, Industrial Development Board, Cyprus 1 Project, 9.75%, 12/1/13.......................... 335 337 University of Alabama General Fee, 4.75%, 6/1/11, Callable 6/1/07 @ 102, MBIA.................................... 1,500 1,571 University of Alabama General Fee, 4.60%, 6/1/09, Callable 6/1/07 @ 102, MBIA.................................... 1,200 1,280 University of Alabama General Fee, 4.70%, 6/1/10, Callable 6/1/07 @ 102, MBIA.................................... 1,300 1,372 University of South Alabama, University Revenues, Tuition, 4.70%, 11/15/08, Callable 5/15/06 @ 102, AMBAC........... 2,185 2,327 --------- 141,162 --------- Arizona (1.3%) Arizona School Facilities, Board Revenue State School Improvement, 5.50%, 7/1/10........................... 3,000 3,355 Pima County, School District No.16, Catalina Foothills, GO, 5.75%, 7/1/06, MBIA.................................... 1,200 1,327 --------- 4,682 ---------
Continued
Shares or Principal Amount Value ----------- --------- MUNICIPAL BONDS, continued California (1.7%) Franklin-McKinley School District, GO, 6.00%, 7/1/16, FSA......................... $ 1,000 $ 1,153 San Mateo County Transit District, Sales Tax Revenue, Series A, 5.25%, 6/1/16, Callable 6/1/09 @ 101, FSA................. 4,765 5,010 --------- 6,163 --------- Colorado (1.8%) Central Platte Valley Metropolitan District, 5.20%, 12/1/17, Prerefunded 12/1/09 @ 101, OID, ACA.............................. 5,940 6,692 --------- Florida (8.8%) Dade County, Series DD, GO, 7.70%, 10/1/08, AMBAC...................... 1,760 2,156 Dade County, Series DD, GO, 7.70%, 10/1/12, AMBAC...................... 1,000 1,261 Florida State Board of Education, Capital Outlay, Series A, GO, 5.00%, 6/1/08........ 6,500 7,123 Jacksonville, Water & Sewer District, Revenue, 5.00%, 10/1/20, MBIA.............. 9,550 10,438 Key West Utilities Board, Electric Revenue, 6.00%, 10/1/13, AMBAC............. 2,450 2,824 Reedy Creek, Improvement District, Series 1, 5.50%, 10/1/08, Callable 10/1/07 @ 101, AMBAC.............. 8,070 8,982 --------- 32,784 --------- Hawaii (1.1%) Hawaii State, GO, 5.50%, 3/1/16, Prerefunded 3/1/07 @ 102, FGIC............. 3,625 4,085 --------- Illinois (2.8%) Chicago Metropolitan Water Reclamation District, Greater Chicago Capital Improvements, GO, 6.90%, 1/1/07............ 7,830 8,940 Will County Forest Preservation District, Series B, 0.00%, 12/1/18, FGIC............. 3,000 1,333 --------- 10,273 --------- Kentucky (0.6%) Carrollton & Henderson Public Energy Authority, Gas Revenue, Series A, 5.00%, 1/1/09, FSA......................... 2,000 2,177 --------- Louisiana (0.3%) Louisiana Local Government Environmental Facilities, Community Development Authority Revenue, Capital Projects & Equipment Acquisition, 5.25%, 12/1/18, AMBAC...................................... 1,085 1,143 --------- Maryland (1.4%) Maryland State Department of Transportation, Construction Revenue, 4.00%, 12/15/07............................ 5,000 5,313 ---------
Continued 75 MUNICIPAL BOND FUND Schedule of Portfolio Investments July 31, 2003 (amounts in thousands, except shares)
Shares or Principal Amount Value ----------- --------- MUNICIPAL BONDS, continued Minnesota (0.6%) Centennial Independent School District No. 12, Series A, GO, 5.60%, 2/1/07, MBIA..................................... $ 2,175 $ 2,406 --------- Mississippi (0.9%) Medical Center Educational Building Corp. of Mississippi, Revenue, University of Mississippi Medical Center Project, 5.90%, 12/1/23, Prerefunded 12/1/04 @ 102, MBIA................................ 2,075 2,249 Mississippi State, Series B, GO, 5.90%, 11/15/09.......................... 1,000 1,148 --------- 3,397 --------- Missouri (0.1%) Missouri State, Water Pollution, Series B, GO, 5.00%, 8/1/07, Callable 8/1/03 @ 102.................... 390 399 --------- Ohio (2.9%) Ohio State Higher Education, Series A, GO, 5.20%, 2/1/10........................ 9,700 10,635 --------- Oklahoma (0.5%) Moore, GO, 5.75%, 4/1/12, MBIA............ 1,530 1,675 --------- Oregon (2.2%) Salem, GO, 4.45%, 12/1/10, Callable 6/1/09 @ 100, FSA........................ 2,365 2,467 Washington County Criminal Justice Facilities, GO, 5.00%, 12/1/09, Callable 12/1/07 @ 100............................ 5,285 5,740 --------- 8,207 --------- Rhode Island (1.2%) Rhode Island Port Authority & Economic Development Corp., Revenue, Shepard Building Project, Series B, 6.75%, 6/1/25, Prerefunded 6/1/04 @ 102, AMBAC.................................... 1,000 1,068 Rhode Island State, Series A, GO, 5.75%, 9/1/13, Callable 9/1/09 @ 101, FGIC...... 3,065 3,410 --------- 4,478 --------- South Carolina (2.7%) Beaufort County School District, Series B, GO, 4.10%, 2/1/09, Callable 2/1/07 @ 101, SCSDE............................... 5,525 5,729 Beaufort County School District, Series B, GO, 4.90%, 3/1/09, Callable 3/1/05 @ 101.................... 4,125 4,355 --------- 10,084 --------- Tennessee (3.2%) Jackson, Improvements, 5.00%, 3/1/10, Prerefunded 3/1/05 @ 102................. 2,000 2,133
Continued
Shares or Principal Amount Value ----------- --------- MUNICIPAL BONDS, continued Tennessee, continued Metropolitan Government, Nashville & Davidson County, Industrial Development Board, Revenue, Multi- Family Housing, Arbor, Series B, 7.50%, 11/15/10, Prerefunded 5/15/10 @ 100........................... $ 1,000 $ 1,238 Metropolitan Government, Nashville & Davidson County, Industrial Development Board, Revenue, Multi- Family Housing, Arbor, Series C, 7.50%, 11/15/12, Prerefunded 5/15/12 @100............................ 1,000 1,260 Tennessee State, Series B, GO, 5.00%, 5/1/15, Callable 5/1/08 @ 100.... 1,500 1,552 Tennessee State, Series B, GO, 4.60%, 5/1/07, Callable 5/1/06 @ 100.... 5,495 5,814 --------- 11,997 --------- Texas (9.5%) Dallas County, Series A, GO, 5.25%, 8/15/09.......................... 3,000 3,321 Harris County, Housing Financial Corp., Multi-Family Housing Revenue, Breton Mill Partners, 7.00%, 3/1/07, Prerefunded 2/15/07 @ 100............... 1,000 1,158 Katy Independent School District, Series A, GO, 4.50%, 2/15/20, Callable 2/15/08 @ 100, PSF-GTD......... 3,600 3,389 Lubbock Health Facilities Development Corp., Hospital Revenue, Methodist Hospital, Series B, 6.75%, 12/1/10, AMBAC................................... 1,000 1,205 Mesquite Independent School District, Series A, GO, 4.70%, 8/15/08, Callable 8/15/07 @ 100.................. 4,000 4,265 Richardson Independent School District, Series C, 4.75%, 2/15/22, Callable 2/15/08 @ 100 PSF-GTD................... 1,000 952 San Antonio, Series A, GO, 4.75%, 2/1/19, Callable 2/1/09 @ 100................... 1,590 1,570 Texas State, Public Finance Authority, Series A, GO, 5.25%, 10/1/08............ 7,965 8,859 University of Texas, 4.60%, 7/1/08, Callable 7/1/06 @ 100................... 3,575 3,770 University of Texas, Series B, 4.25%, 8/15/09, Callable 8/15/07 @ 100......... 5,455 5,655 Whitehouse Independent School District, GO, 4.80%, 2/15/12, Callable 2/15/08 @ 100.................. 1,000 1,028 --------- 35,172 --------- Utah (5.5%) Davis County, School District, GO, 4.38%, 6/1/08, School Board Guaranty........... 4,805 5,129
Continued 76 MUNICIPAL BOND FUND Schedule of Portfolio Investments July 31, 2003 (amounts in thousands, except shares)
Shares or Principal Amount Value ----------- --------- MUNICIPAL BONDS, continued Utah, continued Jordan School District, GO, 4.80%, 6/15/08, Callable 6/15/07 @ 100........ $ 3,810 $ 4,084 Utah State, Series F, GO, 5.00%, 7/1/09. 5,200 5,705 Utah State, Series F, GO, 5.50%, 7/1/07. 5,000 5,581 --------- 20,499 --------- Virginia (3.1%) Virginia College Building Authority, Series A, 5.00%, 9/1/12, Callable 9/1/07 @ 101.................. 2,000 2,118 Virginia State, GO, 5.00%, 6/1/08, Callable 6/1/07 @ 100.................. 5,000 5,408 Virginia State, Public School Authority, Series S, 5.25%, 8/1/09................ 3,500 3,889 --------- 11,415 --------- Washington (4.1%) King County Public Hospital District No. 002, GO, 5.25%, 12/1/13, MBIA...... 1,095 1,169 Snohomish County, GO, 3.13%, 12/1/11, OID.................... 1,225 1,148 Washington State, GO, 5.75%, 9/1/08..... 6,500 7,349 Washington State, Series 2-A, GO, 5.00%, 7/1/10, FSA..................... 5,000 5,408 --------- 15,074 --------- West Virginia (0.3%) Raleigh Fayette & Nicholas Counties, 6.20%, 8/1/04.......................... 1,000 1,052 --------- Wisconsin (0.7%) Wisconsin State Health & Educational Facilities Authority, Revenue, Wheaton Franciscan Services, Inc., 6.10%, 8/15/09, MBIA................... 2,420 2,746 --------- TOTAL MUNICIPAL BONDS................... 353,710 ---------
Continued
Shares or Principal Amount Value --------- -------- INVESTMENT COMPANIES (3.6%)........ AmSouth Tax-Exempt Money Market Fund.............................. 5,053,191 $ 5,053 Goldman Sachs Tax-Free Money Market Fund.............................. 8,497,892 8,498 -------- TOTAL INVESTMENT COMPANIES......................... 13,551 -------- TOTAL INVESTMENTS (Cost $346,543) (a) -- 98.8%...... 367,261 Other assets in excess of liabilities -- 1.2%............... 4,641 -------- NET ASSETS -- 100.0%............... $371,902 ========
-------- (a)Represents cost for federal income tax and financial reporting purposes and differs from value by net unrealized appreciation of securities as follows: Unrealized appreciation.... $21,096 Unrealized depreciation.... (378) ------- Net unrealized appreciation $20,718 =======
ACA -- ACA Certificate of Bond Insurance AMBAC -- Insured by AMBAC Indemnity Corp. ETM -- Escrowed to Maturity FGIC -- Insured by Financial Guaranty Insurance Corp. FSA -- Insured by Financial Security Assurance Inc. GO -- General Obligation MBIA -- Insured by Municipal Bond Insurance Assoc. OID -- Original Issue Discount PSF-GTD -- Permanent School Fund Guarantee SCSDE -- South Carolina School District Enhancement See notes to financial statements. 77 FLORIDA TAX-EXEMPT FUND Schedule of Portfolio Investments July 31, 2003 (amounts in thousands, except shares)
Shares or Principal Amount Value --------- -------- MUNICIPAL BONDS (97.0%) Florida (97.0%) Altamonte Springs, Health Facilities Authority, Hospital Revenue, 5.60%, 10/1/10, ETM........................ $ 545 $ 618 Broward County Gas Tax Revenue, 5.25%, 9/1/09.............................. 500 555 Broward County, Series B, GO, 5.00%, 1/1/09.............................. 800 872 Broward County, Series B, GO, 5.00%, 1/1/10.............................. 1,000 1,079 Clearwater Utility Revenue, 6.10%, 12/1/07, ETM........................................ 700 804 Dade County Aviation Authority, Series 1994 B, 6.25%, 10/1/04, AMBAC....... 1,000 1,060 Dade County School Board, Certificates of Participation, Series C, 5.25%, 8/1/06, FSA........................................ 750 821 Dade County School District, GO, 6.00%, 7/15/06............................. 1,000 1,115 Dade County School District, GO, 5.00%, 2/15/14, Callable 2/15/07 @ 101, MBIA...... 1,000 1,040 Escambia County Utility Authority, Utility System Revenue, 5.00%, 1/1/08, FGIC........ 1,000 1,089 Florida Housing Finance Agency, Homeowner Mortgages, Series 1995 A-1, 5.65%, 1/1/09, Callable 1/1/06 @ 102...................... 520 548 Florida State Board of Education, Lottery Revenue, Series B, 5.25%, 7/1/09, Callable 7/1/08 @ 101, FGIC......................... 1,000 1,101 Florida State Board of Education, Lottery Revenue, Series C, 5.00%, 1/1/14, Callable 1/1/13 @101, MBIA.......................... 1,000 1,061 Florida State Board of Education, Series A, GO, 5.00%, 1/1/15, Callable 1/1/08 @ 101...................... 1,000 1,031 Florida State Board of Education, Series B, GO, 5.38%, 6/1/08, Callable 6/1/07 @ 101...................... 2,000 2,202 Florida State Department Environmental Protection Preservation, Revenue, Florida Forever, Series B, 5.00%, 7/1/10, MBIA..... 2,000 2,167 Florida State Department of Transportation, Right of Way, Series B, GO, 5.50%, 7/1/08, Callable 7/1/07 @ 101...................... 3,310 3,660 Florida State Division of Bond Finance, Department of General Services Revenues, Preservation 2000, Series A, 5.50%, 7/1/08, FSA........................................ 1,000 1,120 Florida State Division of Bond Finance, Department of General Services Revenues, Preservation 2000, Series A, 5.70%, 7/1/09, Callable 7/1/05 @ 101, AMBAC............... 1,000 1,090 Florida State Division of Bond Finance, Department of General Services Revenues, Preservation 2000, Series A, 5.00%, 7/1/12, Callable 7/1/07 @ 101, AMBAC............... 2,000 2,113
Continued
Shares or Principal Amount Value --------- -------- MUNICIPAL BONDS, continued Florida, continued Florida State Division of Bond Finance, Department of General Services Revenues, Series B, 5.50%, 7/1/05, AMBAC............. $ 2,000 $ 2,154 Florida State Turnpike Authority, Turnpike Revenue, Department of Transportation, Series A, 5.50%, 7/1/11, Callable 7/1/05 @ 101, FGIC................ 1,000 1,087 Florida State, Senior Lien, Jacksonville Transportation, GO, 5.25%, 7/1/15, Callable 7/1/07 @ 101...................... 1,000 1,057 Florida Water Pollution Control Revenue, 5.50%, 1/15/14............................. 1,000 1,084 Ft. Lauderdale Park Improvement Project, GO, 5.50%, 7/1/17, Callable 1/1/04 @ 101...................... 1,250 1,286 Hillsborough County, Capital Improvement, County Center Project, Series B, 5.00%, 7/1/13, Callable 7/1/06 @ 102, MBIA........ 1,000 1,046 Jacksonville Electric Authority, St. John's River Issue 2, Series 16, 5.00%, 10/1/10, Callable 10/1/03 @ 101..................... 1,000 1,016 Jacksonville Water & Sewer Systems Revenue, Series B, 5.25%, 10/1/09, FSA..... 1,000 1,112 Jacksonville, Sales Tax Revenue, 5.00%, 10/1/09, AMBAC............................. 1,000 1,099 Key West Utilities Board, Electric Revenue, 6.00%, 10/1/13, AMBAC...................... 1,500 1,729 Lee County Transportation Facilities, Revenue, Series A, 5.50%, 10/1/11, AMBAC...................................... 1,500 1,671 Manatee County School Board, Certificates of Participation, 5.75%, 7/1/09, Callable 7/1/06 @ 102, MBIA......................... 500 564 Miami Beach Water & Sewer Revenue, 5.38%, 9/1/08, Callable 9/7/01 @ 101, OID, FSA................................... 1,000 1,091 Miami-Dade County Educational Facilities Authority Revenue, Series A, 5.75%, 4/1/13, Callable 4/1/10 @ 101, AMBAC....... 1,060 1,176 Okeechobee Utility Authority, Utility System Revenue, 5.25%, 10/1/14, Callable 10/1/09 @ 101, FSA................ 1,675 1,785 Orange County, Sales Tax Revenue, 4.80%, 1/1/17, Callable 1/1/07 @ 101, FGIC........ 1,000 1,005 Orange County, Tourist Development, Tax Revenue, 5.00%, 10/1/08, AMBAC............. 1,500 1,652 Orlando Utilities Commission, Water & Electric Revenue, Series B, 5.10%, 10/1/11, Callable 10/1/06 @ 100..................... 1,500 1,607 Palm Beach County, Criminal Justice Facilities, 5.38%, 6/1/10, FGIC............ 1,000 1,106 Palm Beach County, Criminal Justice Facilities Revenue, 5.00%, 6/1/12.......... 1,095 1,175
Continued 78 FLORIDA TAX-EXEMPT FUND Schedule of Portfolio Investments July 31, 2003 (amounts in thousands, except shares)
Shares or Principal Amount Value --------- -------- MUNICIPAL BONDS, continued Florida, continued Reedy Creek Improvement District, Series A, GO, 5.60%, 6/1/10, Callable 6/1/05 @ 100, MBIA................. $ 1,000 $ 1,076 St. Johns River Management District, Land Acquisition, 5.10%, 7/1/09, Callable 7/1/05 @ 100, FSA.................. 1,000 1,061 St. Petersburg Utility Tax Revenue, 5.00%, 6/1/08, AMBAC........................ 1,145 1,256 Tallahassee Consolidated Utility System Revenue, 5.80%, 10/1/08, Callable 10/1/03 @ 102...................... 1,000 1,028 Tampa Bay Water Utility System Revenue, Series A, 4.40%, 10/1/10, Callable 10/1/08 @ 101, OID................. 550 574 Tampa Sports Authority, Local Option Sales Tax Revenue, Stadium Project, 6.00%, 1/1/06, MBIA......................... 1,550 1,700 Tampa-Hillsborough County, Expressway, 5.00%, 7/1/10, Callable 7/1/07 @ 101........ 1,000 1,071 Volusia County Sales Tax Revenue, 5.00%, 10/1/13, Callable 10/1/08 @ 101, MBIA........................................ 1,000 1,047 -------- TOTAL MUNICIPAL BONDS........................ 59,461 -------- INVESTMENT COMPANIES (2.1%) AmSouth Tax-Exempt Money Market Fund........................................ 532,289 532 Dreyfus Florida Money Market Fund............ 782,694 783 -------- TOTAL INVESTMENT COMPANIES................... 1,315 -------- TOTAL INVESTMENTS (Cost $58,082) (a) -- 99.1%................. 60,776 Other assets in excess of liabilities -- 0.9% 522 -------- NET ASSETS -- 100.0%......................... $ 61,298 ========
-------- (a)Represents cost for financial reporting purposes, is substantially the same as cost for federal income tax purposes, and differs from value by unrealized appreciation of securities as follows: Unrealized appreciation.... $2,791 Unrealized depreciation.... (97) ------ Net unrealized appreciation $2,694 ======
AMBAC -- Insured by AMBAC Indemnity Corp. ETM -- Escrowed to Maturity FGIC -- Insured by Financial Guaranty Insurance Corp. FSA -- Insured by Financial Security Assurance Inc. GO -- General Obligation MBIA -- Insured by Municipal Bond Insurance Assoc. OID -- Original Issue Discount See notes to financial statements. TENNESSEE TAX-EXEMPT FUND Schedule of Portfolio Investments July 31, 2003 (amounts in thousands, except shares)
Shares or Principal Amount Value ----------- -------- MUNICIPAL BONDS (93.5%) Tennessee (93.5%) Anderson County, GO, 5.00%, 4/1/09, FSA..................................... $ 1,055 $ 1,152 Chattanooga, GO, 5.00%, 9/1/13, Prerefunded 9/1/06 @ 101, OID, FGIC..... 100 110 Chattanooga, Series A, GO, 5.00%, 11/1/06.......................... 1,000 1,094 Clarksville, Water Sewer & Gas Revenue, 5.15%, 2/1/14, FSA...................... 1,570 1,682 Dickson County, Public Improvements & Schools, GO, 5.25%, 4/1/16, Callable 4/1/10 @ 100, OID, FSA.................. 1,000 1,104 Franklin Special School District, GO, 5.00%, 6/1/10........................... 1,020 1,104 Germantown, GO, 4.50%, 8/1/05............ 500 530 Hamilton County, GO, 5.00%, 11/1/11, Callable 11/1/08 @ 101.................. 1,000 1,062 Johnson City, GO, 4.70%, 6/1/12, OID, FGIC.................................... 1,000 1,049 Knox County Health Educational & Housing Facility Board, Hospital Facilities Revenue, Fort Sanders Alliance, 7.25%, 1/1/08, MBIA..................... 750 876 Knox County Health Educational & Housing Facility Board, Hospital Facilities Revenue, Mercy Health System, Series B, 5.30%, 9/1/04, Callable 9/1/03 @ 102, OID, AMBAC.............................. 500 512 Knox County, GO, 4.50%, 4/1/08........... 1,000 1,070 Knox County, GO, 5.50%, 4/1/11........... 2,000 2,215 Knox County, Public Improvements, GO, 5.00%, 5/1/06........................... 425 460 Knoxville, Water Revenue, 5.00%, 3/1/13, Callable 3/1/10 @ 100, MBIA............. 1,000 1,049 Marion County, GO, 5.00%, 4/1/11, AMBAC................................... 1,000 1,075 Memphis, GO, 6.25%, 7/1/04............... 1,000 1,048 Memphis, GO, 6.00%, 11/1/06.............. 1,000 1,123 Metropolitan Government, Nashville & Davidson County, Electric Revenue, Series B, 5.50%, 5/15/12................ 1,000 1,105 Metropolitan Government, Nashville & Davidson County, Electric Revenue, Series B, 5.50%, 5/15/14................ 1,000 1,109 Metropolitan Government, Nashville & Davidson County, GO, 5.00%, 12/1/06..... 600 657 Metropolitan Government, Nashville & Davidson County, GO, 6.00%, 12/1/09..... 1,500 1,730 Metropolitan Government, Nashville & Davidson County, Health & Education Facilities Board Revenue, The Vanderbilt University, Series A, 6.00%, 7/1/07..... 500 564 Metropolitan Government, Nashville & Davidson County, Refunding & Improvement, Series A & B, GO, 5.25%, 10/15/09................................ 1,000 1,112
Continued 79 TENNESSEE TAX-EXEMPT FUND Schedule of Portfolio Investments July 31, 2003 (amounts in thousands, except shares)
Shares or Principal Amount Value ----------- -------- MUNICIPAL BONDS, continued Tennessee, continued Metropolitan Nashville Airport Authority, Airport Revenue Improvement, Series A, 6.63%, 7/1/07, FGIC..................... $ 500 $ 573 Oak Ridge, GO, 5.00%, 4/1/13, Callable 4/1/11 @ 100, AMBAC..................... 1,000 1,054 Putnam County Schools, GO, 5.50%, 4/1/19, OID, Prerefunded 4/1/10 @ 100, FGIC..... 1,000 1,119 Rutherford County, Capital Outlay Notes, Series A, GO, 6.25%, 5/1/04............. 1,500 1,559 Rutherford County, Capital Outlay Notes, Series A, GO, 6.50%, 5/1/06............. 1,050 1,176 Rutherford County, Public Improvements, GO, 5.40%, 4/1/13, Prerefunded 4/1/06 @ 100, OID................................ 1,000 1,091 Shelby County Health Educational & Housing Facility Board, Hospital Revenue, Methodist Health Systems, Inc., 6.25%, 8/1/07, MBIA..................... 3,500 4,004 Shelby County Health Educational & Housing Facility Board, Hospital Revenue, Methodist Healthcare, 5.50%, 4/1/05, ETM, MBIA................ 435 464 Shelby County Health Educational & Housing Facility Board, Hospital Revenue, Methodist Healthcare, 5.50%, 4/1/05, MBIA..................... 165 175 Shelby County Schools, Series A, GO, 5.88%, 6/1/19, Prerefunded 6/1/06 @ 100............................ 1,000 1,109 Shelby County, Public Improvements, Series A, GO, 5.88%, 6/1/20, Prerefunded 6/1/06 @ 100, OID....................... 1,500 1,663 Shelby County, Series A, GO, 6.75%, 4/1/05........................... 1,000 1,087 Shelby County, Series B, GO, 5.25%, 12/1/10, Callable 12/1/06 @ 101, OID.... 1,000 1,090 Tennessee State School Board Authority, Higher Educational Facilities, 5.00%, 5/1/05........................... 500 531 Tennessee State School Board Authority, Higher Educational Facilities, Series A, 5.00%, 5/1/11, FSA...................... 2,000 2,150 Tennessee State, GO, 5.00%, 5/1/09, Callable 5/1/07 @ 101.5, OID............ 500 540 Tennessee State, Series A, GO, 5.00%, 5/1/05........................... 500 531 Williamson County, GO, 6.00%, 3/1/08, OID...................... 500 566 Williamson County, GO, 5.00%, 3/1/11..... 1,000 1,079 Williamson County, Public Improvements, GO, 5.00%, 3/1/07....................... 1,000 1,089 Wilson County, GO, 4.50%, 4/1/06......... 1,135 1,210 -------- 48,452 -------- TOTAL MUNICIPAL BONDS.................... 48,452 --------
Continued
Shares or Principal Amount Value ---------- ------- INVESTMENT COMPANIES (5.2%) AIM Tax-Free Money Market Fund. $1,584,902 $ 1,585 AmSouth Tax-Exempt Money Market Fund.......................... 1,095,615 1,096 ------- TOTAL INVESTMENT COMPANIES..................... 2,681 ------- TOTAL INVESTMENTS (Cost $49,430) (a) -- 98.7%... 51,133 Other assets in excess of liabilities -- 1.3%........... 697 ------- NET ASSETS -- 100.0%........... $51,830 =======
-------- (a)Represents cost for financial reporting purposes, is substantially the same as cost for federal income tax purposes, and differs from value by unrealized appreciation of securities as follows: Unrealized appreciation.... $1,731 Unrealized depreciation.... (28) ------ Net unrealized appreciation $1,703 ======
AMBAC -- Insured by AMBAC Indemnity Corp. ETM -- Escrowed to Maturity FGIC -- Insured by Financial Guaranty Insurance Corp. FSA -- Insured by Financial Security Assurance Inc. GO -- General Obligation MBIA -- Insured by Municipal Bond Insurance Assoc. OID -- Original Issue Discount See notes to financial statements. 80 PRIME MONEY MARKET FUND Schedule of Portfolio Investments July 31, 2003 (amounts in thousands, except shares)
Shares or Principal Amount Value ------------ --------- COMMERCIAL PAPER -- DOMESTIC* (39.9%) Banking (6.7%) Bank of America Corp., 1.20%, 8/14/03..................... $ 23,500 $ 23,490 Wells Fargo & Co., 1.02%, 9/5/03.... 21,000 20,979 --------- 44,469 --------- Computer Hardware (3.5%) IBM Corp., 0.93%, 11/19/03.......... 23,500 23,433 --------- Financial Services (16.5%) AIG Funding, Inc., 1.01%, 8/27/03... 22,000 21,984 American Express Credit Corp., 0.92%, 8/12/03..................... 23,000 22,994 General Electric Capital Corp., 1.05%, 12/18/03.................... 20,000 19,919 Goldman Sachs, 0.97%, 9/11/03....... 23,500 23,474 Morgan Stanley Dean Witter Co., 1.03%, 8/21/03..................... 22,000 21,987 --------- 110,358 --------- Materials (3.1%) E.I. Du Pont De Nemours & Co., 1.00%, 9/24/03..................... 20,500 20,469 --------- Oil & Gas Exploration, Production, & Services (3.3%) Chevron Texaco Corp., 1.01%, 8/25/03 22,000 21,985 --------- Pharmaceuticals (6.8%) Merck & Co., Inc., 1.09%, 9/9/03.... 23,000 22,973 Pfizer, Inc., 1.01%, 8/19/03........ 22,000 21,989 --------- 44,962 --------- TOTAL COMMERCIAL PAPER -- DOMESTIC........................... 265,676 --------- U.S. GOVERNMENT AGENCIES* (32.2%) Fannie Mae (4.8%) 1.00%, 1/7/04....................... 32,000 31,859 --------- Federal Farm Credit Bank (5.2%) 1.38%, 11/3/03...................... 30,000 29,892 1.47%, 11/17/03..................... 4,500 4,480 --------- 34,372 --------- Federal Home Loan Bank (5.8%) 1.11%, 9/26/03...................... 21,000 20,964 1.27%, 2/13/04...................... 17,000 17,357 --------- 38,321 --------- Freddie Mac (5.9%) 1.22%, 8/29/03...................... 19,000 18,982 1.23%, 9/30/03...................... 20,000 19,959 --------- 38,941 --------- Sallie Mae (5.8%) 1.33%, 9/16/03...................... 2,405 2,401 1.36%, 10/14/03..................... 9,000 8,975 1.43%, 12/16/03..................... 28,000 27,848 --------- 39,224 ---------
Continued
Shares or Principal Amount Value ------------ --------- U.S. GOVERNMENT AGENCIES*, continued Tennessee Valley Authority (4.7%) 0.94%, 9/18/03........................... $ 31,000 $ 30,961 --------- TOTAL U.S. GOVERNMENT AGENCIES................................ 213,678 --------- U.S. TREASURY NOTES (3.8%) 2.88%, 6/30/04........................... 25,000 25,425 --------- TOTAL U.S. TREASURY NOTES................ 25,425 --------- REPURCHASE AGREEMENTS (24.1%) Goldman Sachs, 1.12%, 8/1/03, dated 7/31/03, with a maturity value of $79,982................................. 79,980 79,980 Prudential, 1.12%, 8/1/03, dated 7/31/03, with a maturity value of $79,982........ 79,980 79,980 --------- TOTAL REPURCHASE AGREEMENTS.............................. 159,960 --------- SHORT-TERM SECURITIES HELD AS COLLATERAL FOR SECURITIES LENDING (7.0%) Pool of Various Securities for AmSouth Mutual Funds -- Footnote 3 (Securities Lending)................................ 46,403,025 46,403 --------- TOTAL SHORT-TERM SECURITIES HELD AS COLLATERAL FOR SECURITIES LENDING...................... 46,403 --------- TOTAL INVESTMENTS (Cost $711,142) (a) -- 107.0%.......... 711,142 Liabilities in excess of other assets -- (7.0)%.................................. (46,577) --------- NET ASSETS -- 100.0%..................... $ 664,565 =========
-------- (a)Cost and value for federal income tax and financial reporting purposes are the same. * Rates disclosed represent yield effective at purchase. See notes to financial statements. 81 U.S. TREASURY MONEY MARKET FUND Schedule of Portfolio Investments July 31, 2003 (amounts in thousands, except shares)
Principal Amount Value ----------- -------- U.S. TREASURY BILLS* (62.6%) 1.13%, 8/7/03............................ $ 11,500 $ 11,499 1.06%, 8/14/03 - 8/28/03................. 16,000 15,991 1.17%, 8/21/03........................... 7,000 6,995 1.10%, 9/4/03 - 10/23/03................. 12,500 12,480 1.14%, 9/11/03 - 10/16/03................ 12,300 12,282 1.15%, 9/18/03 - 10/9/03................. 18,000 17,970 1.00%, 10/30/03.......................... 4,000 3,990 0.90%, 12/11/03.......................... 5,000 4,984 0.92%, 1/8/04............................ 8,000 7,966 0.97%, 1/15/04........................... 5,000 4,978 0.99%, 1/22/04........................... 3,500 3,483 -------- TOTAL U.S. TREASURY BILLS................ 102,618 -------- U.S. TREASURY NOTES (3.4%) 3.38%, 4/30/04........................... 5,500 5,603 -------- TOTAL U.S. TREASURY NOTES................ 5,603 -------- REPURCHASE AGREEMENTS (34.0%) Goldman Sachs, 1.02%, 08/1/03, dated 7/31/03, with a maturity value of $27,886................................. 27,886 27,886 Prudential, 1.04%, 8/1/03, dated 7/31/03, with a maturity value of $27,887........ 27,886 27,886 -------- TOTAL REPURCHASE AGREEMENTS.............................. 55,772 -------- SHORT-TERM SECURITIES HELD AS COLLATERAL FOR SECURITIES LENDING (17.9%) Pool of Various Securities for AmSouth Mutual Funds -- Footnote 3 (Securities Lending)................................ 29,250,918 29,251 -------- TOTAL SHORT-TERM SECURITIES HELD AS COLLATERAL FOR SECURITIES LENDING...................... 29,251 -------- TOTAL INVESTMENTS........................ (Cost $193,244) (a) -- 117.9%.......... 193,244 Liabilities in excess of other assets -- (17.9)%................................. (29,355) -------- NET ASSETS -- 100.0%..................... $163,889 ========
-------- (a)Cost and value for federal income tax and financial reporting purposes are the same. * Rates disclosed represent yield effective at purchase. See notes to financial statements. TREASURY RESERVE MONEY MARKET FUND Schedule of Portfolio Investments July 31, 2003 (amounts in thousands, except shares)
Principal Amount Value ----------- -------- U.S. TREASURY BILLS* (54.8%) 1.12%, 8/7/03............................ $ 5,000 $ 4,999 0.79%, 8/21/03........................... 2,500 2,499 1.14%, 8/28/03-9/18/03................... 7,000 6,992 1.10%, 9/4/03............................ 4,000 3,996 1.11%, 9/11/03........................... 3,000 2,996 1.17%, 9/25/03-10/16/03.................. 6,500 6,486 0.87%, 10/2/03........................... 2,500 2,496 1.15%, 10/9/03........................... 3,500 3,492 0.87%, 10/23/03.......................... 3,500 3,493 0.85%, 11/6/03........................... 2,500 2,494 0.86%, 11/13/03.......................... 2,500 2,494 1.06%, 11/20/03.......................... 3,500 3,489 0.90%, 12/11/03.......................... 2,500 2,493 -------- TOTAL U.S. TREASURY BILLS................ 48,419 -------- U.S. TREASURY NOTES (10.3%) 3.25%, 12/31/03.......................... 5,000 5,045 3.38%, 4/30/04........................... 4,000 4,075 -------- TOTAL U.S. TREASURY NOTES................ 9,120 -------- REPURCHASE AGREEMENTS (35.0%) Goldman Sachs, 1.02%, 8/1/03, dated 7/31/03, with a maturity value of $15,471................................. 15,470 15,470 Prudential, 1.04%, 8/1/03, dated 7/31/03, with a maturity value of $15,471........ 15,470 15,470 -------- TOTAL REPURCHASE AGREEMENTS.............................. 30,940 -------- SHORT-TERM SECURITIES HELD AS COLLATERAL FOR SECURITIES LENDING (19.2%) Pool of Various Securities for AmSouth Mutual Funds -- Footnote 3 (Securities Lending).................... 16,968,533 16,969 -------- TOTAL SHORT-TERM SECURITIES HELD AS COLLATERAL FOR SECURITIES LENDING...................... 16,969 -------- TOTAL INVESTMENTS (Cost $105,448) (a) -- 119.2%........... 105,448 Liabilities in excess of other assets -- (19.2)%................................. (17,019) -------- NET ASSETS -- 100.0%..................... $ 88,429 ========
-------- (a)Cost and value for federal income tax and financial reporting purposes are the same. * Rates disclosed represent yield effective at purchase. See notes to financial statements. 82
Shares or Principal Amount Value ----------- --------- DEMAND NOTES* (71.1%) Alabama (8.2%) Alabama Housing Finance Authority, Multi-Family Housing Revenue, Rime Village Huntsville Project, Series B, 0.85%, 6/15/26, FNMA.................... $ 1,500 $ 1,500 Eutaw Industrial Development Board, PCR, Alabama Power Co. Project, 0.90%, 6/1/28........................... 1,800 1,800 Homewood Educational Building Authority, Revenue, Educational Facilities, Samford University, 0.90%, 12/1/21, AMBAC, SPA: Bank of Nova Scotia................ 1,100 1,100 Homewood Educational Building Authority, Revenue, Educational Facilities, Samford University, 0.90%, 12/1/25, SPA: South Trust Bank N.A...... 4,000 4,000 Jacksonville Industrial Development Board, Industrial Revenue, Parker Hannifin Corp., 0.90%, 9/1/12, LOC: Wachovia Bank of Georgia................ 1,000 1,000 Mobile Industrial Development Board, PCR, Alabama Power Co. Project, Series B, 0.89%, 8/1/17................. 2,000 2,000 Port City Medical Clinic Board Mobile, Revenue, Infirmary Health, 0.89%, 2/1/25, SPA: The Bank of Nova Scotia and KBC Bank N.V............ 2,000 2,000 --------- 13,400 --------- Arizona (2.1%) Phoenix Industrial Development Authority, Multi-Family Housing Revenue, Del Mar Terrace, Series A, 0.85%, 10/1/29.......................... 3,450 3,450 --------- California (1.5%) Metropolitan Water District, Revenue, Southern California Waterworks, Series C-1, 0.82%, 7/1/36, SPA: Lloyds TSB Bank PLC............................ 2,500 2,500 --------- Colorado (1.7%) Colorado Health Facilities Authority, Revenue, North Colorado Medical Center, 0.80%, 5/15/20, MBIA............ 2,800 2,800 --------- Connecticut (3.7%) Connecticut State Health & Educational Facilities Authority, Revenue, Yale University Series V-1, 0.82%, 7/1/36.... 1,000 1,000 Connecticut State Health & Educational Facilities Authority, Revenue, Yale University, Series T-1, 0.82%, 7/1/29... 5,000 5,000 --------- 6,000 ---------
Continued TAX-EXEMPT MONEY MARKET FUND Schedule of Portfolio Investments July 31, 2003 (amounts in thousands, except shares)
Shares or Principal Amount Value ----------- --------- DEMAND NOTES*, continued District of Columbia (1.8%) District of Columbia Institute for International Economics, Revenue, 0.85%, 6/1/25, LOC: Suntrust Bank....... $ 2,900 $ 2,900 --------- Florida (1.8%) Sarasota County Public Hospital Board, Revenue, Sarasota Memorial Hospital, 0.92%, 7/1/37, AMBAC.................... 3,000 3,000 --------- Georgia (14.9%) Burke County Development Authority, PCR, Oglethorpe Power Corporation Project, Series C, 0.90%, 1/1/18, MBIA, SPA: JP Morgan Chase Bank............... 2,800 2,800 Cobb County Housing Authority, Multi- Family Housing Revenue, Post Mill Project, 0.85%, 6/1/25, FNMA............ 1,000 1,000 Fulton County Development Authority, Revenue, Lovett School Project, 0.85%, 7/1/26, LOC: Suntrust Bank....... 3,000 3,000 Macon-Bibb County Georgia Hospital Authority, Revenue Anticipation Certificates, 0.90%, 5/1/30, LOC: Suntrust Bank...................... 5,900 5,900 Monroe County Development Authority, PCR, Oglethorpe Power Corporation Project, 0.90%, 1/1/22, AMBAC, SPA: JP Morgan Chase & Co............... 6,640 6,640 Municipal Electric Authority, Revenue, Project One, Sub Series D, 0.80%, 1/1/20, MBIA..................... 5,000 5,000 --------- 24,340 --------- Illinois (5.8%) Elmhurst, Revenue, Joint Common Accredation, 0.85%, 7/1/18, LOC: Dexia Credit Local de France.................. 4,385 4,385 Illinois Developmental Finance Authority, Revenue, Provena Health Series C, 0.80%, 5/1/28, MBIA, SPA: Bank One N.A....................... 5,000 5,000 --------- 9,385 --------- Maryland (0.6%) Maryland State Economic Development Corp., Revenue, Federation of American Societies, Series A, 0.90%, 7/1/30, LOC: Suntrust Bank...................... 1,000 1,000 --------- Montana (1.5%) Forsyth Pollution Control, Revenue, Pacificorp Project, 0.92%, 1/1/18....... 2,500 2,500 --------- Nevada (1.8%) Clark County Airport, Revenue, Series B-2, 0.76%, 7/1/29, LOC: Bayerische Hypo-Und Vereinsbank......... 3,000 3,000 ---------
Continued 83 TAX-EXEMPT MONEY MARKET FUND Schedule of Portfolio Investments July 31, 2003 (amounts in thousands, except shares)
Shares or Principal Amount Value ----------- --------- DEMAND NOTES*, continued New Jersey (3.1%) New Jersey Economic Authority Dock Facilities, Revenue, Bayonne/IMTT Project, Series A, 0.90%, 12/1/27, LOC: Suntrust Bank.......................... $ 1,100 $ 1,100 New Jersey State Educational Facilities Authority, Revenue, Princeton University, Series B, 0.82%, 7/1/21.... 3,900 3,900 --------- 5,000 --------- New York (5.1%) New York, Series F-3, GO, 0.78%, 2/15/13, LOC: Morgan Guaranty Trust.................. 5,000 5,000 New York, Sub Series A-7, GO, 0.91%, 11/1/24, AMBAC, SPA: Bank of Nova Scotia.................... 1,400 1,400 New York, Sub Series E2, GO, 0.91%, 8/1/20.......................... 2,000 2,000 --------- 8,400 --------- Oregon (0.7%) Port of Portland, PCR, Reynolds Metals, 0.85%, 12/1/09, LOC: San Paolo Bank......................... 1,150 1,150 --------- Tennessee (6.6%) Blount County Health Educational & Housing Facilities Board, Revenue, Presbyterian Homes Tennessee Project, 0.85%, 1/1/19, LOC: Suntrust Bank...... 1,200 1,200 Clarksville Public Building Authority, Revenue, 0.85%, 7/1/16, LOC: Suntrust Bank.......................... 2,900 2,900 Dickson County Tennessee Industrial Development Board, Revenue, Renaissance Learning Center, 0.85%, 11/1/12, LOC: Suntrust Bank..... 1,700 1,700 Metropolitan Government, Nashville & Davidson County, Industrial Development Board, Revenue, Country Music Hall of Fame, 0.85%, 6/1/22, LOC: Bank of America................... 2,835 2,835 Sevier County Tennessee Public Building Authority, Local Government Series III-A-1, Revenue, 0.86%, 6/1/07, AMBAC, SPA: Landesbank Hessen-Thueringen...... 2,150 2,150 --------- 10,785 --------- Virginia (4.2%) Loudoun County Industrial Development Authority, Revenue, Howard Hughes Medical, Series C, 0.87%, 2/15/38...... 2,000 2,000 Roanoke Industrial Development Authority, Revenue, Carilion Health System, Series E, 0.90%, 7/1/27, LOC: Suntrust Bank.......................... 4,800 4,800 --------- 6,800 ---------
Continued
Shares or Principal Amount Value ----------- --------- DEMAND NOTES*, continued Washington (2.9%) Washington State, Series VR 96B, GO, 0.75%, 6/1/20, SPA: Landesbank Hessen-Thueringen...................... $ 4,700 $ 4,700 --------- Wisconsin (3.1%) Green Bay Redevelopment Authority, Revenue, Berlin Memorial Hospital, Series B, 0.76%, 2/15/31, LOC: Associated Bank N.A.................... 5,000 5,000 --------- TOTAL DEMAND NOTES...................... 116,110 --------- MUNICIPAL BONDS (24.1%) California (0.9%) Sacramento County, Tax and Revenue Anticipation Notes, GO, 3.00%, 8/1/03.......................... 1,420 1,420 --------- Connecticut (0.6%) South Central Connecticut Regional Water Authority, Revenue, Series 12, 5.10%, 8/1/06, FGIC.................... 1,000 1,020 --------- Illinois (0.6%) Jersey & Greene Counties, Community Units School District #100, GO, 1.63%, 12/1/03, FSA.................... 1,000 1,002 --------- Kentucky (3.2%) Northern Kentucky Water Distribution, Revenue, Bond Anticipation Notes, Series A, 1.75%, 10/1/03, Callable 5/1/03 @ 100.................. 5,210 5,212 --------- Maryland (3.4%) Anne Arundel County, GO, 1.00%, 3/1/04.......................... 5,500 5,502 --------- Massachusetts (1.2%) Quincy, Bond Anticipation Notes, GO, 1.75%, 12/12/03........................ 2,000 2,007 --------- Minnesota (2.6%) Branchburg Township, Bond Anticipation Notes, GO, 1.63%, 9/10/03.............. 2,000 2,001 Deer River, Independent School District # 317, Aid Anticipation Certificates of Indebtedness, GO, 1.63%, 9/21/03, SD CRED PROG........................... 1,175 1,175 Perham, Independent School District # 549, Aid Anticipation Certificates of Indebtedness, GO, 2.00%, 9/30/03, SD CRED PROG........................... 1,065 1,066 --------- 4,242 --------- New Hampshire (2.8%) Carroll County, Tax Anticipation Notes, GO, 1.50%, 12/29/03.................... 4,545 4,553 --------- New Jersey (3.5%) Allendale Board of Education, Temporary Notes, GO, 1.90%, 9/5/03............... 2,391 2,392
Continued 84 TAX-EXEMPT MONEY MARKET FUND Schedule of Portfolio Investments July 31, 2003 (amounts in thousands, except shares)
Shares or Principal Amount Value ----------- --------- MUNICIPAL BONDS, continued New Jersey, continued Trenton, Temporary Notes, GO, 1.75%, 10/17/03........................ $ 3,400 $ 3,405 --------- 5,797 --------- North Dakota (3.1%) Minot, Certificates of Indebtedness, GO, 1.25%, 6/15/04, Callable 12/15/03 @ 100......................... 5,000 5,008 --------- Ohio (1.6%) Niles, Bond Anticipation Notes, GO, 1.25%, 7/15/04......................... 1,565 1,571 Ohio State Higher Education, B Series, GO, 2.00%, 11/1/03..................... 1,000 1,001 --------- 2,572 --------- Tennessee (0.6%) Dickson Electrical Systems, Revenue, 1.30%, 9/1/03, FSA..................... 1,000 1,000 --------- TOTAL MUNICIPAL BONDS................... 39,335 --------- INVESTMENT COMPANIES (4.6%) AIM Tax-Free Money Market Fund.......... 1,517,951 1,518 Goldman Sachs Tax-Free Money Market Fund................................... 5,940,461 5,940 --------- TOTAL INVESTMENT COMPANIES.............................. 7,458 --------- TOTAL INVESTMENTS....................... (Cost $162,903) (a) -- 99.8%............ 162,903 Other assets in excess of liabilities -- 0.2%.................... 260 --------- NET ASSETS -- 100.0%.................... $ 163,163 =========
-------- (a)Cost and value for federal income tax and financial reporting purposes are the same. * Variable rate security. Rate presented represents rate in effect at July 31, 2003. Put and demand features 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. FGIC -- Insured by Financial Guaranty Insurance Corp. FNMA -- Insured by Federal National Mortgage Assoc. FSA -- Insured by Financial Security Assurance Inc. GO -- General Obligation LOC -- Letter of Credit MBIA -- Insured by Municipal Bond Insurance Assoc. PCR -- Pollution Control Revenue PLC -- Public Limited Company SD CRED PROG -- School District Credit Program SPA -- Standby Purchase Agreement See notes to financial statements. INSTITUTIONAL PRIME OBLIGATIONS MONEY MARKET FUND Schedule of Portfolio Investments July 31, 2003 (amounts in thousands, except shares)
Shares or Principal Amount Value ------------ --------- COMMERCIAL PAPER -- DOMESTIC* (36.7%) Banking (6.2%) Bank of America Corp., 1.20%, 8/14/03..................... $ 14,500 $ 14,494 Wells Fargo & Co., 1.02%, 9/5/03.... 14,000 13,986 --------- 28,480 --------- Computer Hardware (3.0%) IBM Corp., 0.93%, 11/19/03.......... 14,000 13,960 --------- Financial Services (15.4%) AIG Funding, Inc., 1.01%, 8/27/03... 14,000 13,990 American Express Credit Corp., 0.92%, 8/12/03..................... 14,000 13,996 General Electric Capital Corp., 1.05%, 12/18/03.................... 15,000 14,939 Goldman Sachs, 0.97%, 9/11/03....... 13,500 13,485 Morgan Stanley Dean Witter Co., 1.03%, 8/21/03..................... 14,000 13,992 --------- 70,402 --------- Materials (3.1%) E.I. Du Pont De Nemours & Co., 1.00%, 9/24/03..................... 14,500 14,478 --------- Oil & Gas Exploration, Production, & Services (2.9%) Chevron Texaco Corp., 1.01%, 8/25/03 13,500 13,491 --------- Pharmaceuticals (6.1%) Merck & Co., Inc., 1.09%, 9/9/03.... 14,000 13,983 Pfizer, Inc., 1.01%, 8/19/03........ 14,000 13,993 --------- 27,976 --------- TOTAL COMMERCIAL PAPER -- DOMESTIC........................... 168,787 --------- U.S. GOVERNMENT AGENCIES* (29.5%) Fannie Mae (4.8%) 1.00%, 1/7/04....................... 22,000 21,903 --------- Federal Farm Credit Bank (5.2%) 1.39%, 11/3/03...................... 20,000 19,929 1.49%, 11/17/03..................... 4,000 3,982 --------- 23,911 --------- Federal Home Loan Bank (4.5%) 1.18%, 10/29/03..................... 21,000 20,939 --------- Freddie Mac (5.0%) 1.22%, 8/29/03...................... 11,000 10,990 1.23%, 9/30/03...................... 12,000 11,975 --------- 22,965 --------- Sallie Mae (5.5%) 1.34%, 9/16/03...................... 1,620 1,617 1.38%, 10/14/03..................... 6,000 5,983 1.45%, 12/16/03..................... 18,000 17,902 --------- 25,502 ---------
Continued 85 INSTITUTIONAL PRIME OBLIGATIONS MONEY MARKET FUND Schedule of Portfolio Investments July 31, 2003 (amounts in thousands, except shares)
Shares or Principal Amount Value ------------ --------- U.S. GOVERNMENT AGENCIES*, continued Tennessee Valley Authority (4.5%) 0.94%, 9/18/03........................... $ 21,000 $ 20,974 --------- TOTAL U.S. GOVERNMENT AGENCIES................................ 136,194 --------- U.S. TREASURY NOTES (3.3%) 2.88%, 6/30/04........................... 15,000 15,255 --------- TOTAL U.S. TREASURY NOTES................ 15,255 --------- REPURCHASE AGREEMENTS (30.6%) Goldman Sachs, 1.12%, 8/1/03, dated 7/31/03, with a maturity value of $70,581................................. 70,579 70,579 Prudential, 1.12%, 8/1/03, dated 7/31/03, with a maturity value of $70,581........ 70,579 70,579 --------- TOTAL REPURCHASE AGREEMENTS.............................. 141,158 --------- INVESTMENT COMPANIES (0.0%) AmSouth Prime Money Market Fund.......... 20,986 21 AmSouth U.S. Treasury Money Market Fund.................................... 17,233 17 --------- TOTAL INVESTMENT COMPANIES............................... 38 --------- SHORT-TERM SECURITIES HELD AS COLLATERAL FOR SECURITIES LENDING (6.7%) Pool of Various Securities for AmSouth Mutual Funds -- Footnote 3 (Securities Lending).................... 30,846,573 30,847 --------- TOTAL SHORT-TERM SECURITIES HELD AS COLLATERAL FOR SECURITIES LENDING...................... 30,847 --------- TOTAL INVESTMENTS (Cost $492,279) (a) -- 106.8%........... 492,279 Liabilities in excess of other assets -- (6.8)%.................................. (31,209) --------- NET ASSETS -- 100.0%..................... $ 461,070 =========
-------- (a)Cost and value for federal income tax and financial reporting purposes are the same. * Rates disclosed represent yield effective at purchase. See notes to financial statements. 86 [THIS PAGE INTENTIONALLY LEFT BLANK] 87 AMSOUTH FUNDS Statements of Assets and Liabilities (amounts in thousands, except per share amounts) July 31, 2003
Select Enhanced Large Value Equity Market Cap Fund Fund Fund Fund --------- ------- -------- -------- Assets: Investments: Investments, at cost.......................................................... $ 521,595 $55,998 $125,798 $416,609 Net unrealized appreciation................................................... 88,581 3,557 2,942 137,257 --------- ------- -------- -------- Investments, at value......................................................... 610,176 59,555 128,740 553,866 Foreign currency, at value*..................................................... -- -- -- -- Cash............................................................................ -- -- 456*** -- Interest and dividends receivable............................................... 976 50 148 406 Receivable from capital shares issued........................................... 2 45 2 16 Receivable from investments sold................................................ -- 323 -- -- Receivable from foreign tax withholding reclaims................................ -- -- -- -- Prepaid expenses and other assets............................................... 9 4 37 17 --------- ------- -------- -------- Total Assets.................................................................. 611,163 59,977 129,383 554,305 Liabilities: Payable for investments purchased............................................... -- 511 -- -- Payable for securities loaned................................................... 78,576 -- 195 47,956 Payable for capital shares redeemed............................................. 45 22 1 31 Accrued expenses and other payables: Investment advisory fees...................................................... 105 12 14 94 Administration fees........................................................... 9 1 2 6 Shareholder servicing and distribution fees................................... 82 12 21 72 Custodian fees................................................................ 8 1 2 8 Other......................................................................... 117 6 18 72 --------- ------- -------- -------- Total Liabilities............................................................. 78,942 565 253 48,239 --------- ------- -------- -------- Net Assets...................................................................... $ 532,221 $59,412 $129,130 $506,066 ========= ======= ======== ======== Composition of Net Assets: Capital......................................................................... $ 598,155 $55,522 $133,881 $373,302 Accumulated net investment income/(loss)........................................ 304 -- 36 -- Accumulated net realized gains/(losses) from investments, foreign currency, futures, and option transactions............................................... (154,819) 333 (7,725) (4,493) Unrealized appreciation from investments, futures, and translation of assets and liabilities denominated in foreign currencies.................................. 88,581 3,557 2,938 137,257 --------- ------- -------- -------- Net Assets...................................................................... $ 532,221 $59,412 $129,130 $506,066 ========= ======= ======== ======== Class A Shares: Net Assets.................................................................... $ 112,701 $ 7,034 $ 21,431 $ 88,989 Shares Outstanding............................................................ 8,627 592 2,172 5,445 Net Asset Value and Redemption Price per share................................ $ 13.06 $ 11.89 $ 9.87 $ 16.34 ========= ======= ======== ======== Maximum Sales Load............................................................ 5.50% 5.50% 5.50% 5.50% --------- ------- -------- -------- Maximum Offering Price per share (Net Assets Value/(100% -- maximum sales charge))............................................................... $ 13.82 $ 12.58 $ 10.44 $ 17.29 Class B Shares: Net Assets.................................................................... $ 28,786 $ 7,758 $ 9,566 $ 23,334 Shares Outstanding............................................................ 2,243 668 988 1,488 Net Asset Value and Offering Price per share**................................ $ 12.83 $ 11.61 $ 9.68 $ 15.68 ========= ======= ======== ======== Class I Shares: Net Assets.................................................................... $ 390,734 $44,620 $ 98,133 $393,743 Shares Outstanding............................................................ 29,968 3,741 9,936 24,007 Net Asset Value, Offering Price, and Redemption Price per share............... $ 13.04 $ 11.93 $ 9.88 $ 16.40 ========= ======= ======== ========
* Cost of foreign currency for the International Equity Fund is $2,497. ** Redemption price per share varies by length of time shares are held. ***Deposits for financial futures. See notes to financial statements. 88 July 31, 2003 AMSOUTH FUNDS Statements of Assets and Liabilities (amounts in thousands, except per share amounts)
Strategic Strategic Strategic Portfolios: Portfolios: Strategic Portfolios: Moderate Capital Small Aggressive Portfolios: Growth & Growth & Growth Mid Cap Cap International Balanced Growth Growth Income Income Fund Fund Fund Equity Fund Fund Portfolio Portfolio Portfolio Portfolio --------- -------- -------- ------------- -------- ----------- ----------- ----------- ----------- $ 252,906 $122,776 $170,204 $257,102 $158,553 $ 24,325 $23,871 $ 78,636 $29,821 30,134 14,871 28,410 12,514 21,419 3,356 2,148 5,440 1,415 --------- -------- -------- -------- -------- -------- ------- -------- ------- 283,040 137,647 198,614 269,616 179,972 27,681 26,019 84,076 31,236 -- -- -- 2,496 -- -- -- -- -- -- 204*** -- 5,700 -- -- -- -- -- 152 87 2 313 993 -- -- -- -- 1 5 3 -- 24 55 96 198 69 7,359 -- 11,157 -- -- -- -- -- -- -- -- -- 152 -- -- -- -- -- 12 22 7 14 9 9 9 4 6 --------- -------- -------- -------- -------- -------- ------- -------- ------- 290,564 137,965 209,783 278,291 180,998 27,745 26,124 84,278 31,311 9,427 -- 7,381 1,833 -- -- -- -- -- 23,731 4,773 19,647 16,072 19,401 -- -- -- -- 7 8 5 3 20 2 1 1 2 51 20 49 52 32 1 1 2 1 3 2 2 3 2 -- -- 1 -- 31 17 18 23 39 4 5 11 5 4 2 3 23 2 -- -- 1 -- 26 35 21 25 43 11 15 18 3 --------- -------- -------- -------- -------- -------- ------- -------- ------- 33,280 4,857 27,126 18,034 19,539 18 22 34 11 --------- -------- -------- -------- -------- -------- ------- -------- ------- $ 257,284 $133,108 $182,657 $260,257 $161,459 $ 27,727 $26,102 $ 84,244 $31,300 ========= ======== ======== ======== ======== ======== ======= ======== ======= $ 366,949 $148,115 $240,151 $284,805 $144,492 $ 35,027 $29,872 $ 93,754 $32,761 -- -- -- 2,646 (103) -- 23 119 54 (139,799) (29,945) (85,904) (39,749) (4,349) (10,656) (5,941) (15,069) (2,930) 30,134 14,938 28,410 12,555 21,419 3,356 2,148 5,440 1,415 --------- -------- -------- -------- -------- -------- ------- -------- ------- $ 257,284 $133,108 $182,657 $260,257 $161,459 $ 27,727 $26,102 $ 84,244 $31,300 ========= ======== ======== ======== ======== ======== ======= ======== ======= $ 23,915 $ 9,085 $ 5,929 $ 4,711 $ 78,679 $ 11,310 $10,978 $ 28,745 $10,988 2,734 872 821 542 6,917 1,462 1,337 3,238 1,215 $ 8.75 $ 10.42 $ 7.22 $ 8.69 $ 11.37 $ 7.73 $ 8.21 $ 8.88 $ 9.04 ========= ======== ======== ======== ======== ======== ======= ======== ======= 5.50% 5.50% 5.50% 5.50% 5.50% 5.50% 5.50% 5.50% 5.50% --------- -------- -------- -------- -------- -------- ------- -------- ------- $ 9.26 $ 11.03 $ 7.64 $ 9.20 $ 12.03 $ 8.18 $ 8.69 $ 9.40 $ 9.57 $ 8,571 $ 6,525 $ 1,987 $ 810 $ 20,004 $ 2,014 $ 4,491 $ 3,839 $ 2,812 1,039 648 287 95 1,764 269 550 433 312 $ 8.25 $ 10.07 $ 6.92 $ 8.49 $ 11.34 $ 7.49 $ 8.16 $ 8.86 $ 9.01 ========= ======== ======== ======== ======== ======== ======= ======== ======= $ 224,798 $117,498 $174,741 $254,736 $ 62,776 $ 14,403 $10,633 $ 51,660 $17,500 25,711 11,253 23,899 29,187 5,518 1,864 1,290 5,797 1,930 $ 8.74 $ 10.44 $ 7.31 $ 8.73 $ 11.38 $ 7.73 $ 8.24 $ 8.91 $ 9.07 ========= ======== ======== ======== ======== ======== ======= ======== =======
See notes to financial statements. 89 AMSOUTH FUNDS Statements of Assets and Liabilities (amounts in thousands, except per share amounts) July 31, 2003
Limited Government Term Municipal Income Bond Bond Bond Fund Fund Fund Fund ---------- -------- -------- --------- Assets: Investments: Investments, at cost............................................................ $341,576 $297,724 $811,390 $346,543 Net unrealized appreciation..................................................... 9,722 5,743 31,466 20,718 Repurchase agreements, at cost.................................................. -- -- -- -- -------- -------- -------- -------- Investments, at value........................................................... 351,298 303,467 842,856 367,261 Cash.............................................................................. -- -- -- -- Interest and dividends receivable................................................. 2,697 2,098 9,053 4,678 Receivable from capital shares issued............................................. 8 1 1 97 Prepaid expenses and other assets................................................. 22 4 5 2 -------- -------- -------- -------- Total Assets.................................................................... 354,025 305,570 851,915 372,038 Liabilities: Dividends payable................................................................. -- -- -- -- Payable for securities loaned..................................................... 69,495 62,686 191,636 -- Payable for capital shares redeemed............................................... 11 177 4 -- Accrued expenses and other payables: Investment advisory fees........................................................ 36 30 82 37 Administration fees............................................................. 4 3 8 5 Shareholder servicing and distribution fees..................................... 36 43 72 38 Custodian fees.................................................................. 4 4 10 6 Other........................................................................... 43 39 95 50 -------- -------- -------- -------- Total Liabilities............................................................... 69,629 62,982 191,907 136 -------- -------- -------- -------- Net Assets........................................................................ $284,396 $242,588 $660,008 $371,902 ======== ======== ======== ======== Composition of Net Assets: Capital........................................................................... $274,163 $238,779 $624,473 $349,725 Accumulated net investment income (loss).......................................... 198 (565) (933) 1,134 Accumulated net realized gains/(losses) from investment transactions.............. 313 (1,369) 5,002 325 Unrealized appreciation from investments.......................................... 9,722 5,743 31,466 20,718 -------- -------- -------- -------- Net Assets........................................................................ $284,396 $242,588 $660,008 $371,902 ======== ======== ======== ======== Class A Shares (a): Net Assets........................................................................ $ 20,721 $ 38,211 $ 50,591 $ 16,385 Shares Outstanding................................................................ 2,063 3,586 4,464 1,587 Net Asset Value and Redemption Price per share.................................... $ 10.05 $ 10.65 $ 11.33 $ 10.32 ======== ======== ======== ======== Maximum Sales Load.............................................................. 4.00% 4.00% 4.00% 4.00% -------- -------- -------- -------- Maximum Offering Price per share (Net Assets Value/(100%-maximum sales charge)). $ 10.47 $ 11.09 $ 11.80 $ 10.75 Class B Shares (b): Net Assets...................................................................... $ 10,228 $ 23,190 $ 10,168 $ 4,496 Shares Outstanding.............................................................. 1,018 2,179 900 436 Net Asset Value and Offering Price per share*................................... $ 10.04 $ 10.64 $ 11.30 $ 10.31 ======== ======== ======== ======== Class I Shares (c): Net Assets...................................................................... $253,447 $181,187 $599,249 $351,021 Shares Outstanding.............................................................. 25,222 16,995 52,872 33,985 Net Asset Value, Offering Price, and Redemption Price per share................. $ 10.05 $ 10.66 $ 11.33 $ 10.33 ======== ======== ======== ========
* Redemption price per share varies by length of time shares are held. (a)Represents Class 2 Shares for the Institutional Prime Obligations Money Market Fund. (b)Represents Class 3 Shares for the Institutional Prime Obligations Money Market Fund. (c)Represents Class 1 Shares for the Institutional Prime Obligations Money Market Fund. See notes to financial statements. 90 July 31, 2003 AMSOUTH FUNDS Statements of Assets and Liabilities (amounts in thousands, except per share amounts)
Institutional U.S. Treasury Prime Florida Tennessee Prime Treasury Reserve Tax-Exempt Obligations Tax- Tax- Money Money Money Money Money Exempt Exempt Market Market Market Market Market Fund Fund Fund Fund Fund Fund Fund ------- --------- -------- -------- -------- ---------- ------------- $58,082 $49,430 $551,182 $137,472 $ 74,508 $162,903 $351,121 2,694 1,703 -- -- -- -- -- -- -- 159,960 55,772 30,940 -- 141,158 ------- ------- -------- -------- -------- -------- -------- 60,776 51,133 711,142 193,244 105,448 162,903 492,279 -- -- -- -- -- -- -- 546 718 483 52 51 362 44 -- -- -- -- -- -- -- 2 12 19 7 13 7 2 ------- ------- -------- -------- -------- -------- -------- 61,324 51,863 711,644 193,303 105,512 163,272 492,325 -- -- 202 27 21 26 267 -- -- 46,403 29,251 16,969 -- 30,847 -- -- -- -- -- -- -- 6 6 206 45 30 36 29 1 1 5 3 1 3 4 9 8 117 17 14 15 79 1 1 10 2 1 3 7 9 17 136 69 47 26 22 ------- ------- -------- -------- -------- -------- -------- 26 33 47,079 29,414 17,083 109 31,255 ------- ------- -------- -------- -------- -------- -------- $61,298 $51,830 $664,565 $163,889 $ 88,429 $163,163 $461,070 ======= ======= ======== ======== ======== ======== ======== $58,489 $49,944 $664,568 $163,881 $ 88,426 $163,462 $461,039 89 82 -- 7 4 -- 31 26 101 (3) 1 (1) (299) -- 2,694 1,703 -- -- -- -- -- ------- ------- -------- -------- -------- -------- -------- $61,298 $51,830 $664,565 $163,889 $ 88,429 $163,163 $461,070 ======= ======= ======== ======== ======== ======== ======== $ 6,955 $ 9,325 $439,061 $ 54,476 $ 46,753 $ 33,748 $193,468 650 903 439,099 54,476 46,761 33,808 193,460 $ 10.70 $ 10.33 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 ======= ======= ======== ======== ======== ======== ======== 4.00% 4.00% -- -- -- -- -- ------- ------- -------- -------- -------- -------- -------- $ 11.15 $ 10.76 $ 3,807 $ 2,936 $ 3,567 N/A N/A N/A $ 91,824 356 284 3,567 N/A N/A N/A 91,815 $ 10.68 $ 10.34 $ 1.00 N/A N/A N/A $ 1.00 ======= ======= ======== ======== ======== ======== ======== $50,536 $39,569 $221,937 $109,413 $ 41,676 $129,415 $175,778 4,718 3,834 221,926 109,405 41,690 129,655 175,770 $ 10.71 $ 10.32 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 ======= ======= ======== ======== ======== ======== ========
See notes to financial statements. 91 AMSOUTH FUNDS Statements of Operations (amount in thousands) For the year ended July 31, 2003
Select Enhanced Large Value Equity Market Cap Fund Fund Fund Fund --------- ------ -------- ------- Investment Income: Dividends..................... $ 13,269 $ 640 $ 1,312 $ 6,239 Dividends from affiliates..... 87 7 28 43 Interest...................... 2 -- 2 -- Securities lending............ 72 -- 1 81 --------- ------ ------- ------- Total Investment Income...... 13,430 647 1,343 6,363 --------- ------ ------- ------- Expenses: Investment advisory........... 4,247 291 339 3,746 Administration................ 1,062 73 151 937 Distribution -- Class B Shares 178 43 64 158 Shareholder servicing -- Class A Shares............... 262 14 45 184 Shareholder servicing -- Class B Shares............... 59 16 21 53 Shareholder servicing -- Class I Shares............... 603 38 73 561 Accounting.................... 118 9 36 104 Custodian..................... 146 10 21 129 Transfer agent................ 225 43 63 201 Registration and filing....... 21 10 12 33 Other......................... 213 15 29 185 --------- ------ ------- ------- Total expenses before fee reductions................. 7,134 562 854 6,291 Expenses reduced by: Investment Advisor......... (41) (3) (13) (248) Administrator.............. (15) (19) (43) (238) Custodian.................. (31) (3) (6) (27) Transfer Agent............. -- (25) (19) -- Distributor................ (201) (13) (24) (187) Fund Accountant............ (79) (5) (11) (69) --------- ------ ------- ------- Net Expenses................. 6,767 494 738 5,522 --------- ------ ------- ------- Net Investment Income (Loss).. 6,663 153 605 841 --------- ------ ------- ------- Realized/Unrealized Gains/(Losses) from Investments Net realized gains/(losses) from investment transactions and futures**................ (117,200) 825 (3,413) (4,493) Realized gain distributions from underlying funds........ -- -- -- -- Change in unrealized appreciation from investments, futures, and translation of assets and liabilities denominated in foreign currencies........... 153,621 4,147 15,444 51,641 --------- ------ ------- ------- Net Realized/Unrealized Gains from Investments............. 36,421 4,972 12,031 47,148 --------- ------ ------- ------- Change in Net Assets Resulting from Operations.... $ 43,084 $5,125 $12,636 $47,989 ========= ====== ======= =======
* Dividends for the International Equity Fund are net of foreign withholding taxes of $706. **Represents realized gains/(losses) from investment transactions with affiliates for the Strategic Portfolios. See notes to financial statements. 92 For the year ended July 31, 2003 AMSOUTH FUNDS Statements of Operations (amount in thousands)
Strategic Strategic Strategic Portfolios: Portfolios: Strategic Portfolios: Moderate Capital International Aggressive Portfolios: Growth & Growth & Growth Mid Cap Small Cap Equity Balanced Growth Growth Income Income Fund Fund Fund Fund Fund Portfolio Portfolio Portfolio Portfolio -------- ------- --------- ------------- -------- ----------- ----------- ----------- ----------- $ 2,057 $ 1,115 $ 319 $ 5,491* $ 1,680 $ -- $ -- $ -- $ -- 39 24 32 -- 31 148 322 1,635 684 -- 1 46 54 3,370 -- -- -- -- 37 2 125 209 18 -- -- -- -- -------- ------- -------- ------- ------- ------- ------- ------- ------- 2,133 1,142 522 5,754 5,099 148 322 1,635 684 -------- ------- -------- ------- ------- ------- ------- ------- ------- 2,026 933 1,810 2,634 1,210 46 41 151 54 506 187 302 421 302 46 41 151 54 61 47 13 4 134 8 20 16 11 43 20 12 10 178 23 19 51 20 21 16 5 1 45 2 6 6 4 342 119 216 310 93 20 16 80 26 59 38 37 72 41 5 4 16 6 70 26 41 108 42 6 6 21 7 80 64 61 47 114 64 48 69 58 26 15 12 33 11 17 17 28 28 99 37 60 84 61 11 10 31 9 -------- ------- -------- ------- ------- ------- ------- ------- ------- 3,333 1,502 2,569 3,724 2,231 248 228 620 277 (12) (375) (163) (927) (16) (23) (21) (76) (27) (130) (51) (79) (105) (82) (23) (21) -- (27) (14) (6) (9) -- (9) (1) (1) (5) (2) -- (16) (8) -- (7) (27) (27) (18) (26) (114) (40) (72) (103) (31) (17) (15) (49) (18) (38) (14) (22) (31) (22) (3) (3) (11) (4) -------- ------- -------- ------- ------- ------- ------- ------- ------- 3,025 1,000 2,216 2,558 2,064 154 140 461 173 -------- ------- -------- ------- ------- ------- ------- ------- ------- (892) 142 (1,694) 3,196 3,035 (6) 182 1,174 511 -------- ------- -------- ------- ------- ------- ------- ------- ------- (31,626) (2,855) (26,523) 3,252 (3,406) (7,110) (3,757) (8,020) (1,846) -- -- -- -- -- 182 139 476 175 55,752 20,382 34,595 27,352 12,184 9,529 5,461 12,753 3,250 -------- ------- -------- ------- ------- ------- ------- ------- ------- 24,126 17,527 8,072 30,604 8,778 2,601 1,843 5,209 1,579 -------- ------- -------- ------- ------- ------- ------- ------- ------- $ 23,234 $17,669 $ 6,378 $33,800 $11,813 $ 2,595 $ 2,025 $ 6,383 $ 2,090 ======== ======= ======== ======= ======= ======= ======= ======= =======
See notes to financial statements. 93 AMSOUTH FUNDS Statements of Operations (amount in thousands) For the year ended July 31, 2003
Limited Government Term Municipal Income Bond Bond Bond Fund Fund Fund Fund ---------- ------- ------- --------- Investment Income: Dividends.............................................. $ -- $ -- $ -- $ -- Dividends from affiliates.............................. 139 58 130 133 Interest............................................... 13,965 8,742 32,398 15,957 Securities lending..................................... 66 46 183 -- -------- ------- ------- ------- Total Investment Income.............................. 14,170 8,846 32,711 16,090 -------- ------- ------- ------- Expenses: Investment advisory.................................... 1,868 1,325 4,270 2,462 Administration......................................... 575 408 1,314 757 Distribution -- Class B Shares (b)..................... 65 123 79 34 Shareholder servicing -- Class A Shares (a)............ 42 65 114 36 Shareholder servicing -- Class B Shares (b)............ 22 41 27 12 Shareholder servicing -- Class I Shares (c)............ 393 242 901 540 Accounting............................................. 84 55 158 100 Custodian.............................................. 79 56 181 104 Transfer agent......................................... 69 52 191 67 Registration and filing................................ 24 6 9 -- Other.................................................. 117 82 264 159 -------- ------- ------- ------- Total expenses before fee reductions................. 3,338 2,455 7,508 4,271 Expenses reduced by: Investment Advisor................................. (437) (334) (1,050) (954) Administrator...................................... (145) (112) (349) (196) Custodian.......................................... (17) (12) (39) (22) Transfer Agent..................................... -- -- -- -- Distributor........................................ (131) (81) (300) (180) Fund Accountant.................................... (43) (30) (98) (56) -------- ------- ------- ------- Net Expenses......................................... 2,565 1,886 5,672 2,863 -------- ------- ------- ------- Net Investment Income.................................. 11,605 6,960 27,039 13,227 -------- ------- ------- ------- Realized/Unrealized Gains/(Losses) from Investments: Net realized gains from investment transactions........ 8,185 1,070 11,539 1,238 Change in unrealized depreciation from investments..... (10,035) (1,377) (5,808) (2,667) -------- ------- ------- ------- Net Realized/Unrealized Gains/(Losses) from Investments (1,850) (307) 5,731 (1,429) -------- ------- ------- ------- Change in Net Assets Resulting from Operations......... $ 9,755 $ 6,653 $32,770 $11,798 ======== ======= ======= =======
(a)Represents Class 2 Shares for the Institutional Prime Obligations Money Market. (b)Represents Class 3 Shares for the Institutional Prime Obligations Money Market. (c)Represents Class 1 Shares for the Institutional Prime Obligations Money Market. See notes to financial statements. 94 For the year ended July 31, 2003 AMSOUTH FUNDS Statements of Operations (amount in thousands)
Institutional U.S. Treasury Prime Florida Tennessee Prime Treasury Reserve Tax-Exempt Obligations Tax- Tax- Money Money Money Money Money Exempt Exempt Market Market Market Market Market Fund Fund Fund Fund Fund Fund Fund ------- --------- ------- -------- -------- ---------- ------------- $ -- $ -- $ -- $ -- $ -- $ 99 $ -- 20 22 -- -- -- -- -- 2,626 2,078 12,515 2,862 2,420 2,258 7,720 -- -- 45 29 24 -- 27 ------ ------ ------- ------ ------ ------ ------ 2,646 2,100 12,560 2,891 2,444 2,357 7,747 ------ ------ ------- ------ ------ ------ ------ 409 362 3,448 805 674 740 1,057 126 111 1,724 402 337 370 529 26 20 29 -- -- -- 651 16 21 1,223 242 157 91 464 9 6 10 -- -- -- -- 80 67 553 157 158 223 -- 18 18 186 44 37 47 114 17 15 237 55 46 51 145 32 32 231 126 47 30 81 2 35 34 23 26 22 5 27 30 375 110 103 74 220 ------ ------ ------- ------ ------ ------ ------ 762 717 8,050 1,964 1,585 1,648 3,266 (160) (86) (431) (101) (84) (277) (687) (66) (30) (862) -- (168) -- -- (4) (3) (47) (10) (8) (11) (28) (21) (22) -- -- -- -- -- (27) (22) (199) (54) (53) (79) -- (9) (8) (127) (30) (25) (27) (78) ------ ------ ------- ------ ------ ------ ------ 475 546 6,384 1,769 1,247 1,254 2,473 ------ ------ ------- ------ ------ ------ ------ 2,171 1,554 6,176 1,122 1,197 1,103 5,274 ------ ------ ------- ------ ------ ------ ------ 26 343 -- -- 2 -- -- (525) (499) -- -- -- -- -- ------ ------ ------- ------ ------ ------ ------ (499) (156) -- -- -- -- -- ------ ------ ------- ------ ------ ------ ------ $1,672 $1,398 $ 6,176 $1,122 $1,199 $1,103 $5,274 ====== ====== ======= ====== ====== ====== ======
See notes to financial statements. 95 AMSOUTH FUNDS Statements of Changes in Net Assets (amounts in thousands)
Year Ended Year Ended Year Ended Year Ended Year Ended Year Ended July 31, July 31, July 31, July 31, July 31, July 31, 2003 2002 2003 2002 2003 2002 ---------- ---------- ---------- ---------- ---------- ---------- Value Fund Select Equity Fund Enhanced Market Fund ------------------------ -------------------- -------------------- Net Assets, Beginning of Period........................... $ 530,580 $ 688,970 $ 17,730 $ 11,294 $ 32,910 $ 53,848 --------- --------- -------- -------- -------- -------- Operations: Net investment income (loss)............................. 6,663 3,834 153 29 605 109 Net realized gains (losses) from investment transactions, futures, and option contracts............ (117,200) 44,820 825 1,307 (3,413) (4,213) Change in unrealized appreciation/depreciation from investments............................................ 153,621 (270,953) 4,147 (1,988) 15,444 (7,436) --------- --------- -------- -------- -------- -------- Change in net assets resulting from operations............ 43,084 (222,299) 5,125 (652) 12,636 (11,540) --------- --------- -------- -------- -------- -------- Dividends to: Class A Shareholders: From net investment income............................... (1,165) (630) (24) (8) (132) (66) From net realized gains from investment transactions..... (3,842) (10,776) -- -- -- (312) Class B Shareholders: From net investment income............................... (131) (8) (9) (1) (9) (3) From net realized gains from investment transactions..... (507) (1,102) -- -- -- (168) Class I Shareholders: From net investment income............................... (5,099) (3,128) (123) (23) (428) (43) From net realized gains from investment transactions..... (17,634) (43,798) -- -- -- (246) --------- --------- -------- -------- -------- -------- Change in net assets from dividends to shareholders....... (28,378) (59,442) (156) (32) (569) (838) --------- --------- -------- -------- -------- -------- Change in net assets from capital share transactions...... (13,065) 123,351 36,713 7,120 84,153 (8,560) --------- --------- -------- -------- -------- -------- Change in net assets...................................... 1,641 (158,390) 41,682 6,436 96,220 (20,938) --------- --------- -------- -------- -------- -------- Net Assets, End of Period................................. $ 532,221 $ 530,580 $ 59,412 $ 17,730 $129,130 $ 32,910 ========= ========= ======== ======== ======== ======== Strategic Portfolios: Aggressive Growth International Equity Fund Balanced Fund Portfolio ------------------------ -------------------- -------------------- Net Assets, Beginning of Period........................... $ 189,777 $ 148,945 $154,958 $166,762 $ 21,823 $ 25,092 --------- --------- -------- -------- -------- -------- Operations: Net investment income (loss)............................. 3,196 885 3,035 4,192 (6) (69) Net realized gains (losses) from investments, and foreign currency transactions*......................... 3,252 (40,007) (3,406) 4,299 (7,110) (4,149) Realized gain distributions from underlying funds........ -- -- -- -- 182 939 Change in unrealized appreciation/depreciation from investments and translation of assets and liabilities in foreign currencies.................................. 27,352 10,232 12,184 (21,559) 9,529 (3,549) --------- --------- -------- -------- -------- -------- Change in net assets resulting from operations............ 33,800 (28,890) 11,813 (13,068) 2,595 (6,828) --------- --------- -------- -------- -------- -------- Dividends to: Class A Shareholders: From net investment income............................... (3) -- (1,672) (1,806) (1) -- From net realized gains from investment transactions..... -- -- (916) (1,970) -- (453) Class B Shareholders: From net investment income............................... -- -- (287) (248) -- -- From net realized gains from investment transactions..... -- -- (234) (332) -- (48) Class I Shareholders: From net investment income............................... (425) (158) (1,566) (2,222) (2) -- From net realized gains from investment transactions..... -- -- (846) (2,428) -- (1,157) --------- --------- -------- -------- -------- -------- Change in net assets from dividends to shareholders....... (428) (158) (5,521) (9,006) (3) (1,658) --------- --------- -------- -------- -------- -------- Change in net assets from capital transactions............ 36,942 69,880 209 10,270 3,312 5,217 --------- --------- -------- -------- -------- -------- Proceeds from redemption fees collected................... 166 -- -- -- -- -- --------- --------- -------- -------- -------- -------- Change in net assets...................................... 70,480 40,832 6,501 (11,804) 5,904 (3,269) --------- --------- -------- -------- -------- -------- Net Assets, End of Period................................. $ 260,257 $ 189,777 $161,459 $154,958 $ 27,727 $ 21,823 ========= ========= ======== ======== ======== ========
*Represents realized gains/(losses) from investment transactions with affiliates for the Strategic Portfolios. See notes to financial statements. 96 AMSOUTH FUNDS Statements of Changes in Net Assets (amounts in thousands)
Year Ended Year Ended Year Ended Year Ended Year Ended Year Ended Year Ended Year Ended July 31, July 31, July 31, July 31, July 31, July 31, July 31, July 31, 2003 2002 2003 2002 2003 2002 2003 2002 ---------- ---------- ---------- ---------- ---------- ---------- ---------- ---------- Large Cap Fund Capital Growth Fund Mid Cap Fund Small Cap Fund -------------------- -------------------- -------------------- -------------------- $473,011 $ 616,343 $267,396 $327,718 $ 45,753 $ 65,480 $146,227 $184,056 -------- --------- -------- -------- -------- -------- -------- -------- 841 240 (892) (1,754) 142 (749) (1,694) (1,761) (4,493) 31,495 (31,626) (58,901) (2,855) (5,295) (26,523) (28,063) 51,641 (170,150) 55,752 (26,541) 20,382 (7,918) 34,595 (25,781) -------- --------- -------- -------- -------- -------- -------- -------- 47,989 (138,415) 23,234 (87,196) 17,669 (13,962) 6,378 (55,605) -------- --------- -------- -------- -------- -------- -------- -------- (100) (17) -- -- (8) -- -- -- (2,938) (4,137) -- -- -- -- -- -- -- -- -- -- -- -- -- -- (898) (1,616) -- -- -- -- -- -- (832) (325) (6) -- (148) -- -- -- (15,666) (28,167) -- -- -- -- -- -- -------- --------- -------- -------- -------- -------- -------- -------- 20,434 (34,262) (6) -- (156) -- -- -- -------- --------- -------- -------- -------- -------- -------- -------- 5,500 29,345 (33,340) 26,874 69,842 (5,765) 30,052 17,776 -------- --------- -------- -------- -------- -------- -------- -------- 33,055 (143,332) (10,112) (60,322) 87,355 (19,727) 36,430 (37,829) -------- --------- -------- -------- -------- -------- -------- -------- $506,066 $ 473,011 $257,284 $267,396 $133,108 $ 45,753 $182,657 $146,227 ======== ========= ======== ======== ======== ======== ======== ======== Strategic Portfolios: Strategic Portfolios: Strategic Portfolios: Growth & Income Moderate Growth & Growth Portfolio Portfolio Income Portfolio -------------------- -------------------- -------------------- $ 18,264 $ 20,739 $ 71,099 $ 83,069 $ 25,049 $ 21,726 -------- --------- -------- -------- -------- -------- 182 189 1,173 1,621 511 569 (3,757) (2,443) (8,020) (7,726) (1,846) (1,263) 139 470 476 1,498 175 472 5,461 (1,623) 12,754 (3,832) 3,250 (1,645) -------- --------- -------- -------- -------- -------- 2,025 (3,407) 6,383 (8,439) 2,090 (1,867) -------- --------- -------- -------- -------- -------- (68) (42) (313) (268) (154) (74) -- (149) -- (368) (29) (63) (7) (6) (18) (26) (18) (21) -- (57) -- (58) (4) (24) (102) (142) (863) (1,345) (339) (469) -- (437) -- (1,874) (64) (389) -------- --------- -------- -------- -------- -------- (177) (833) (1,194) (3,939) (608) (1,040) -------- --------- -------- -------- -------- -------- 5,990 1,765 7,956 408 4,769 6,230 -------- --------- -------- -------- -------- -------- 7,838 (2,475) 13,145 (11,970) 6,251 3,323 -------- --------- -------- -------- -------- -------- $ 26,102 $ 18,264 $ 84,244 $ 71,099 $ 31,300 $ 25,049 ======== ========= ======== ======== ======== ========
See notes to financial statements. 97 AMSOUTH FUNDS Statements of Changes in Net Assets (amounts in thousands)
Year Ended Year Ended Year Ended Year Ended July 31, July 31, July 31, July 31, 2003 2002 2003 2002 ---------- ---------- ---------- ---------- Government Income Fund Limited Term Bond Fund ---------------------- -------------------- Net Assets, Beginning of Period....................................... $ 275,553 $ 309,406 $ 184,939 $167,793 ---------- ---------- --------- -------- Operations: Net investment income............................................... 11,605 14,552 6,960 8,017 Net realized gains from investment transactions..................... 8,185 664 1,070 197 Change in unrealized appreciation/depreciation from investments..... (10,035) 5,396 (1,377) 2,872 ---------- ---------- --------- -------- Change in net assets resulting from operations........................ 9,755 20,612 6,653 11,086 ---------- ---------- --------- -------- Dividends to: Class A Shareholders: From net investment income.......................................... (670) (353) (1,030) (667) From net realized gains from investment transactions................ (150) -- -- -- From tax return of capital.......................................... -- (7) -- -- Class B Shareholders: From net investment income.......................................... (275) (112) (512) (210) From net realized gains from investment transactions................ (60) -- -- -- From tax return of capital.......................................... -- (2) -- -- Class I Shareholders: From net investment income.......................................... (10,935) (15,084) (6,543) (7,591) From net realized gains from investment transactions................ (3,633) -- -- -- From tax return of capital.......................................... -- (303) -- -- ---------- ---------- --------- -------- Change in net assets from dividends to shareholders................... (15,723) (15,861) (8,085) (8,468) ---------- ---------- --------- -------- Change in net assets from capital share transactions.................. 14,811 (38,604) 59,081 14,528 ---------- ---------- --------- -------- Change in net assets.................................................. 8,843 (33,853) 57,649 17,146 ---------- ---------- --------- -------- Net Assets, End of Period............................................. $ 284,396 $ 275,553 $ 242,588 $184,939 ========== ========== ========= ======== Prime U.S. Treasury Money Market Fund Money Market Fund ---------------------- -------------------- Net Assets, Beginning of Period....................................... $1,326,177 $1,312,547 $ 267,376 $300,541 ---------- ---------- --------- -------- Operations: Net investment income............................................... 6,176 21,797 1,122 4,121 Net realized gains (losses) from investment transactions.......... -- 54 -- -- Change in unrealized appreciation/depreciation from investments... -- -- -- -- ---------- ---------- --------- -------- Change in net assets resulting from operations........................ 6,176 21,851 1,122 4,121 ---------- ---------- --------- -------- Dividends to: Class A Shareholders (a): From net investment income.......................................... (3,110) (8,874) (469) (1,435) Class B Shareholders (b): From net investment income.......................................... (10) (18) -- -- Class I Shareholders (c): From net investment income.......................................... (3,056) (12,905) (653) (2,686) ---------- ---------- --------- -------- Change in net assets from dividends to shareholders................... (6,176) (21,797) (1,122) (4,121) ---------- ---------- --------- -------- Change in net assets from capital share transactions.................. (661,612) 13,576 (103,487) (33,165) ---------- ---------- --------- -------- Change in net assets.................................................. (661,612) 13,630 (103,487) (33,165) ---------- ---------- --------- -------- Net Assets, End of Period............................................. $ 664,565 $1,326,177 $ 163,889 $267,376 ========== ========== ========= ========
(a)Represents Class 2 for Institutional Prime Obligations Money Market Fund. (b)Represents Class 3 for Institutional Prime Obligations Money Market Fund. (c)Represents Class 1 for Institutional Prime Obligations Money Market Fund. See notes to financial statements. 98 AMSOUTH FUNDS Statements of Changes in Net Assets (amounts in thousands)
Year Ended Year Ended Year Ended Year Ended Year Ended Year Ended Year Ended Year Ended July 31, July 31, July 31, July 31, July 31, July 31, July 31, July 31, 2003 2002 2003 2002 2003 2002 2003 2002 ---------- ---------- ---------- ---------- ---------- ---------- ---------- ---------- Bond Fund Municipal Bond Fund Florida Tax-Exempt Fund Tennessee Tax-Exempt Fund --------------------- -------------------- ---------------------- ------------------------ $ 634,644 $633,927 $386,523 $390,129 $ 61,550 $ 61,833 $54,419 $61,889 ---------- -------- -------- -------- --------- -------- ------- ------- 27,039 30,798 13,227 15,297 2,171 2,320 1,554 1,788 11,539 9,340 1,238 757 26 325 343 753 (5,808) 12,107 (2,667) 7,520 (525) 1,156 (499) 627 ---------- -------- -------- -------- --------- -------- ------- ------- 32,770 52,245 11,798 23,574 1,672 3,801 1,398 3,168 ---------- -------- -------- -------- --------- -------- ------- ------- (2,037) (1,263) (450) (403) (213) (132) (217) (102) (588) (58) (43) (10) (1) -- -- -- -- -- -- -- -- -- -- -- (392) (376) (112) (85) (91) (57) (49) (38) (139) (22) (14) (2) -- -- -- -- -- -- -- -- -- -- -- -- (27,765) (31,417) (11,952) (15,192) (1,866) (2,085) (1,258) (1,667) (7,893) (1,498) (1,118) (339) (5) -- -- -- -- -- -- -- -- -- -- -- ---------- -------- -------- -------- --------- -------- ------- ------- (38,814) (34,634) (13,689) (16,031) (2,176) (2,274) (1,524) (1,807) ---------- -------- -------- -------- --------- -------- ------- ------- 31,408 (16,894) (12,730) (11,149) 252 (1,810) (2,463) (8,831) ---------- -------- -------- -------- --------- -------- ------- ------- 25,364 717 (14,621) (3,606) (252) (283) (2,589) (7,470) ---------- -------- -------- -------- --------- -------- ------- ------- $ 660,008 $634,644 $371,902 $386,523 $ 61,298 $ 61,550 $51,830 $54,419 ========== ======== ======== ======== ========= ======== ======= ======= Institutional Treasury Reserve Tax-Exempt Prime Obligations Money Market Fund Money Market Fund Money Market Fund --------------------- -------------------- ---------------------- $ 316,986 $366,515 $206,543 $192,633 $ 667,633 $753,181 ---------- -------- -------- -------- --------- -------- 1,197 5,520 1,103 1,957 5,274 12,684 -- -- -- (9) -- 27 -- -- -- -- -- -- ---------- -------- -------- -------- --------- -------- 1,197 5,520 1,103 1,948 5,274 12,711 ---------- -------- -------- -------- --------- -------- (376) (1,344) (173) (358) (1,709) (5,402) -- -- -- -- (1,003) (2,954) (821) (4,176) (930) (1,599) (2,562) (4,328) ---------- -------- -------- -------- --------- -------- (1,197) (5,520) (1,103) (1,957) (5,274) (12,684) ---------- -------- -------- -------- --------- -------- (228,557) (49,529) (43,380) 13,919 (206,563) (85,575) ---------- -------- -------- -------- --------- -------- (228,557) (49,529) (43,380) 13,910 (206,563) (85,548) ---------- -------- -------- -------- --------- -------- $ 88,429 $316,986 $163,163 $206,543 $ 461,070 $667,633 ========== ======== ======== ======== ========= ========
See notes to financial statements. 99 AMSOUTH FUNDS Notes to Financial Statements July 31, 2003 1. Organization: AmSouth Funds (the "Trust") was organized on October 1, 1987, and is registered under the Investment Company Act of 1940, as amended ("the 1940 Act"), as a diversified, open-end investment company established as a Massachusetts business trust. The Trust is authorized to issue an unlimited number of shares without par value. The Trust currently offers shares of the AmSouth Value Fund, the AmSouth Select Equity Fund, the AmSouth Enhanced Market Fund, the AmSouth Large Cap Fund, the AmSouth Capital Growth Fund, the AmSouth Mid Cap Fund, the AmSouth Small Cap Fund, the AmSouth International Equity Fund, the AmSouth Balanced Fund, the AmSouth Strategic Portfolios: Aggressive Growth Portfolio, the AmSouth Strategic Portfolios: Growth Portfolio, the AmSouth Strategic Portfolios: Growth and Income Portfolio, the AmSouth Strategic Portfolios: Moderate Growth and Income Portfolio, the AmSouth Government Income Fund, the AmSouth Limited Term Bond Fund, the AmSouth Bond Fund, the AmSouth Municipal Bond Fund, the AmSouth Florida Tax-Exempt Fund, the AmSouth Tennessee Tax-Exempt Fund, (collectively, "the variable net asset funds"), the AmSouth Prime Money Market Fund, the AmSouth U.S. Treasury Money Market Fund, the AmSouth Treasury Reserve Money Market Fund, the AmSouth Tax-Exempt Money Market Fund and the AmSouth Institutional Prime Obligations Money Market Fund (collectively, "the money market funds")(collectively, "the Funds" and individually "a Fund"). 2. Reorganization: The shareholders of the AmSouth Limited Term Tennessee Tax-Exempt Fund approved at a special meeting of the shareholders held on October 15, 2002, a Plan of Reorganization ("Plan") effective November 1, 2002. The Plan, which qualified as a tax-free exchange for federal income tax purposes, provided for the transfer of all of the assets of the AmSouth Limited Term Tennessee Tax-Exempt Fund to the AmSouth Tennessee Tax-Exempt Fund in exchange for Class A and Class B shares of the Tennessee Tax-Exempt Fund and the assumption by the Tennessee Tax-Exempt Fund of all of the liabilities of the Limited Term Tennessee Tax-Exempt Fund, followed by the dissolution and liquidation of the Limited Term Tennessee Tax-Exempt Fund, and the distribution of shares of the Tennessee Tax-Exempt Fund to the shareholders of the Limited Term Tennessee Tax-Exempt Fund. The following is a summary of shares outstanding, net assets, net asset value per share, undistributed net realized losses, and unrealized appreciation immediately prior to and following the reorganization:
After Before Reorganization Reorganization ------------------------ -------------- AmSouth Limited Term AmSouth AmSouth Tennessee Tennessee Tennessee Tax-Exempt Tax-Exempt Tax-Exempt Fund Fund Fund ------------ ----------- -------------- Class A Shares.......................... 850,232 372,321 1,214,802 Net Assets...................... $8,769,633 $ 3,875,588 $12,645,221 Net Asset Value................. $ 10.31 $ 10.41 $ 10.41 Class B Shares.......................... 97,040 176,597 272,645 Net Assets...................... $1,000,801 $ 1,840,087 $ 2,840,888 Net Asset Value................. $ 10.31 $ 10.42 $ 10.42 Class I Shares.......................... -- 4,519,017 4,519,017 Net Assets...................... -- $47,001,860 $47,001,860 Net Asset Value................. -- $ 10.40 $ 10.40 Unrealized Appreciation............ $ 290,780 $ 2,196,459 $ 2,487,239 Undistributed Realized Capital Loss $ (53,964) $ (188,145) $ (242,109)
The AmSouth Tennessee Tax-Exempt Fund retained its investment objective and financial history after the reorganization. Continued 100 AMSOUTH FUNDS Notes to Financial Statements 2. Reorganization (continued) The shareholders of the AmSouth Limited Term U.S. Government Fund approved at a special meeting of the shareholders held on October 15, 2002, a Plan of Reorganization ("Plan") effective November 1, 2002. The Plan, which qualified as a tax-free exchange for federal income tax purposes, provided for the transfer of all of the assets of the AmSouth Limited Term U.S. Government Fund to the AmSouth Government Income Fund in exchange for Class A, Class B, and Class I shares of the Government Income Fund and the assumption by the Government Income Fund of all of the liabilities of the Limited Term U.S. Government Fund, followed by the dissolution and liquidation of the Limited Term U.S. Government Fund, and the distribution of shares of the Government Income Fund to the shareholders of the Limited Term U.S. Government Fund. The following is a summary of shares outstanding, net assets, net asset value per share, undistributed net realized gains/losses, and unrealized appreciation immediately prior to and following the reorganization:
After Before Reorganization Reorganization ------------------------- -------------- AmSouth Limited Term AmSouth AmSouth U.S. Government Government Government Income Income Fund Fund Fund ------------ ------------ -------------- Class A Shares................................. 661,339 1,016,156 1,697,571 Net Assets............................. $ 6,985,312 $ 10,416,782 $ 17,402,094 Net Asset Value........................ $ 10.56 $ 10.25 $ 10.25 Class B Shares................................. 535,539 409,428 961,249 Net Assets............................. $ 5,655,809 $ 4,196,376 $ 9,852,185 Net Asset Value........................ $ 10.56 $ 10.25 $ 10.25 Class I Shares................................. 3,108,506 24,503,522 27,705,597 Net Assets............................. $32,828,223 $251,214,253 $284,042,476 Net Asset Value........................ $ 10.56 $ 10.25 $ 10.25 Unrealized Appreciation................... $ 1,696,549 $ 15,082,282 $ 16,778,831 Undistributed Realized Capital Gain/(Loss) $ (465,656) $ 203,010 $ (262,646)
The AmSouth Government Income Fund retained its investment objective and financial history after the reorganization. Continued 101 AMSOUTH FUNDS Notes to Financial Statements 2. Reorganization (continued) The shareholders of the AmSouth Equity Income Fund approved at a special meeting of the shareholders held on October 15, 2002, a Plan of Reorganization ("Plan") effective November 8, 2002. The Plan, which qualified as a tax-free exchange for federal income tax purposes, provided for the transfer of all of the assets of the AmSouth Equity Income Fund to the AmSouth Value Fund in exchange for Class A, Class B, and Class I shares of the Value Fund and the assumption by the Value Fund of all of the liabilities of the Equity Income Fund, followed by the dissolution and liquidation of the Equity Income Fund, and the distribution of shares of the Value Fund to the shareholders of the Equity Income Fund. The following is a summary of shares outstanding, net assets, net asset value per share, undistributed net realized losses, and unrealized depreciation immediately prior to and following the reorganization:
After Before Reorganization Reorganization -------------------------- -------------- AmSouth Equity Income AmSouth Value AmSouth Value Fund Fund Fund ------------- ------------- -------------- Class A Shares.......................... 1,689,021 7,799,078 9,362,304 Net Assets...................... $ 18,206,099 $ 90,831,411 $109,037,510 Net Asset Value................. $ 10.78 $ 11.65 $ 11.65 Class B Shares.......................... 1,647,093 1,018,302 2,552,269 Net Assets...................... $ 17,577,004 $ 11,668,265 $ 29,245,269 Net Asset Value................. $ 10.67 $ 11.46 $ 11.46 Class I Shares.......................... 2,679,390 35,022,078 37,508,732 Net Assets...................... $ 28,903,417 $407,077,769 $435,981,186 Net Asset Value................. $ 10.79 $ 11.62 $ 11.62 Unrealized Depreciation............ $ (1,062,892) $(79,501,525) $(80,564,417) Undistributed Realized Capital Loss $(37,613,990) $ (8,551,277) $(46,165,267)
The AmSouth Value Fund retained its investment objective and financial history after the reorganization. 3. Significant Accounting Policies: The following is a summary of significant accounting policies followed by the Funds in the preparation of their financial statements. These policies are in conformity with accounting principles generally accepted in the United States ("GAAP"). The preparation of financial statements requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of income and expenses for the period. Actual results could differ from those estimates. Securities Valuation: Investments of the money market funds are valued at amortized cost. Under the amortized cost method, discount or premium is amortized on a constant basis to the maturity of the security. Bond and other fixed income securities (other than short-term obligations but including listed issues) are valued on the basis of valuations furnished by a pricing service, the use of which has been approved by the Trust's Board of Trustees. In making such valuations, the pricing service utilizes both dealer-supplied valuations and the use of electronic and matrix techniques which take into account appropriate factors such as institutional-sized trading in similar groups of securities, yield, quality, coupon rate, maturity, type of issue, trading characteristics other than market data and without exclusive reliance upon quoted prices or exchanges of over-the-counter prices, since such valuations are believed to reflect more accurately the fair value of such securities. All debt portfolio securities with a remaining maturity of 60 days or less are valued at amortized cost, which approximates market value. The value of each equity security is based either on the last sale price on a national securities exchange, or in the absence of recorded sales, by reference to the latest available bid and asked prices in the principal market in which such securities are Continued 102 AMSOUTH FUNDS Notes to Financial Statements 3. Significant Accounting Policies (continued) normally traded. Securities or other assets for which market quotations are not readily available are valued by or at the direction of the Trust's Board of Trustees. Investments in investment companies are valued at their net asset values as reported by such companies. The differences between cost and market values of investments are reflected as unrealized appreciation or depreciation. Investments in restricted securities are valued by the Board of Trustees, or by procedures approved by the Board of Trustees, by considering pertinent factors, including the results of operations and the sales price of recent private placements in its common stock. It is possible that the estimated value may differ significantly from the amount that might ultimately be realized in the near term. 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. Financial Futures Contracts: The Enhanced Market, Select Equity, Large Cap, Capital Growth, Mid Cap, International Equity, Limited Term Bond, Bond, and Tennessee Tax-Exempt Funds may invest in financial futures contracts for the purpose of hedging its existing portfolio securities, or securities that it intends to purchase, against fluctuations in fair value caused by changes in prevailing market interest rates. Upon entering into a financial futures contract, a Fund is required to pledge to the broker an amount of cash and/or other assets equal to a certain percentage of the contract amount (initial margin deposit). Subsequent payments, known as "variation margin," are made or received by a Fund each day, depending on the daily fluctuations in the fair value of the underlying security. A Fund recognizes a gain or loss equal to the daily variation margin. Should market conditions move unexpectedly, the Fund may not achieve the anticipated benefits of the financial futures contracts and may realize a loss. The use of futures transactions involves the risk of imperfect correlation in movements in the price of futures contracts, interest rates, and the underlying hedged assets. Repurchase Agreements: The Funds may acquire repurchase agreements from member banks of the Federal Deposit Insurance Corporation and from registered broker/dealers which AmSouth Investment Management Company, LLC ("AIMCO"), 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. All repurchase agreements are fully collateralized by various U.S. government securities. Foreign Currency Translation: The market value of investment securities, other assets and liabilities of the International Equity Fund denominated in a foreign currency are translated into U.S. dollars at the current exchange rate. Purchases and sales of securities, income receipts and expense payments are translated into U.S. dollars at the exchange rate on the dates of the transactions. The Fund does not isolate that portion of the results of operations resulting from changes in foreign exchange rates on investments from the fluctuations arising from changes in market prices of securities held. Such fluctuations are included with the net realized and unrealized gains or losses from investments. Continued 103 AMSOUTH FUNDS Notes to Financial Statements 3. Significant Accounting Policies (continued) Reported net realized foreign exchange gains or losses arise from sales and maturities of fund securities, sales of foreign currencies, currency exchange fluctuations between the trade and settlement dates of securities transactions, and the difference between the amounts of assets and liabilities recorded and the U.S. dollar equivalent of the amounts actually received or paid. Net unrealized foreign exchange gains and losses arise from changes in the value of assets and liabilities, including investments in securities, resulting from changes in currency exchange rates. Risks Associated with Foreign Securities and Currencies: Investments in securities of foreign issuers carry certain risks not ordinarily associated with investments in securities of domestic issuers. Such risks include future political and economic developments and the possible imposition of exchange controls or other foreign governmental laws and restrictions. In addition, with respect to certain countries, there is the possibility of expropriation of assets, confiscatory taxation, political or social instability or diplomatic developments which could adversely affect investments in those countries. Certain countries may also impose substantial restrictions on investments in their capital markets by foreign entities, including restrictions on investments in issuers or industries deemed sensitive to relevant national interests. These factors may limit the investment opportunities available to the International Equity Fund or result in a lack of liquidity and high price volatility with respect to securities of issuers from developing countries. Forward Currency Contracts: The International Equity Fund may enter into a forward currency contract ("forward") which is an agreement between two parties to buy and sell a currency at a set price on a future date. The market value of the forward fluctuates with changes in currency exchange rates. The forward is marked-to-market daily and the change in market value is recorded by the Fund as unrealized appreciation or depreciation. When the forward is closed, the Fund records a realized gain or loss equal to the difference between the value at the time it was opened and the value at the time it was closed. The Fund could be exposed to risk if a counterparty is unable to meet the terms of a forward or if the value of the currency changes unfavorably. Forwards may involve market or credit risk in excess of the amounts reflected on the Fund's statement of assets and liabilities. The gain or loss from the difference between the cost of original contracts and the amount realized upon the closing of such contracts is included in net realized gains/losses from investment and foreign currency transactions. Fluctuations in the value of forwards held are recorded for financial reporting purposes as unrealized gains and losses by the Fund. Financial Instruments: The Select Equity, Enhanced Market, Large Cap, Capital Growth, Mid Cap, International Equity, Balanced, and Bond Funds may write call options only on securities that are owned by the Fund ("covered calls"). A written call option gives a specified counter-party the right to require the writer of the option to deliver the agreed upon securities, at the agreed upon price, up until the expiration date specified in the contract. For this right, a premium is paid to the writer of the option. The premium received by the Fund for writing the option is booked as realized gains to the Fund. The risks associated with writing a covered call option are diminished compared to writing an uncovered call. The Fund does not bear the risk of having to purchase the securities in the open market at a price greater than the call price should the call option be exercised. Since the Fund owns the securities on which the call has been written, the Fund bears the risk of not receiving the fair market value of a security if the option is exercised. They would be required to sell the securities at the agreed upon price, which would presumably be lower than the fair market value of the securities if the option is exercised. Securities Lending: To generate additional income, the Funds may lend up to 33 1/3% of total assets pursuant to agreements requiring that the loan be continuously secured by cash, U.S. government or U.S. government agency securities, shares of an investment trust or mutual fund, or any combination of cash and such securities as collateral equal at all times to at least 100% of the market value plus accrued interest on the securities lent. The Funds continue to earn interest and dividends on securities lent while simultaneously seeking to earn interest on the investment of collateral. Continued 104 AMSOUTH FUNDS Notes to Financial Statements 3. Significant Accounting Policies (continued) When cash is received as collateral for securities loaned, the Funds may invest such cash in short-term U.S. government securities, repurchase agreements, or other short-term corporate securities. The cash or subsequent short-term investments are recorded as assets of the Funds, offset by a corresponding liability to repay the cash at the termination of the loan. Fixed income securities received as collateral are not recorded as an asset or liability of the Fund because the Fund does not have effective control of such securities. There may be risks of delay in recovery of the securities or even loss of rights in the collateral should the borrower of the securities fail financially. However, loans will be made only to borrowers deemed by the Advisor to be of good standing and creditworthy under guidelines established by the Board of Trustees and when, in the judgment of the Advisor, the consideration which can be earned currently from such securities loans justifies the attendant risks. Loans are subject to termination by the Funds or the borrower at any time, and are, therefore, not considered to be illiquid investments. As of July 31, 2003, the following Funds had securities on loan (amounts in thousands):
Market Market Value of Value of Loaned Collateral Securities ---------- ---------- Value Fund....................................... $ 78,576 $ 76,314 Enhanced Market Fund............................. 195 188 Large Cap Equity................................. 47,956 46,002 Capital Growth................................... 23,731 23,371 Mid Cap Equity................................... 4,773 4,664 Small Cap Fund................................... 19,647 20,121 International Equity Fund........................ 16,072 15,486 Balanced Fund.................................... 19,401 18,830 Government Income Fund........................... 69,495 67,676 Limited Term Bond Fund........................... 62,686 61,166 Bond Fund........................................ 191,636 185,843 Prime Money Market Fund.......................... 46,403 45,411 U.S. Treasury Money Market Fund.................. 29,251 29,232 Treasury Reserve Money Market Fund............... 16,969 16,944 Institutional Prime Obligations Money Market Fund 30,847 30,235
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, except for the International Equity Fund, which dividends are declared and paid annually. Distributable net realized gains, if any, are declared and distributed at least annually. The amounts of dividends from net investment income and of distributions from net realized gains are determined in accordance with federal income tax regulations, which may differ from GAAP. These "book/tax" differences are either considered temporary or permanent in nature. To the extent these differences are permanent in nature, such amounts are reclassified within the composition of net assets based on their federal tax-basis treatment; temporary differences do not require reclassification. To the extent they exceed net investment income and net realized gains for tax purposes, they are reported as distributions of capital. Federal Income Taxes: It is the policy of 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 ("the 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. Continued 105 AMSOUTH FUNDS Notes to Financial Statements 3. Significant Accounting Policies (continued) 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 all the Funds on the basis of relative net assets. Fees paid under a Fund's shareholder servicing or distribution plans are borne by the specific class of shares to which they apply. 4. Purchases and Sales of Securities: Purchases and sales of securities (excluding short-term securities) for the year ended July 31, 2003 were as follows (amounts in thousands):
Purchases Sales --------- -------- Value Fund................................................ $603,125 $688,745 Select Equity Fund........................................ 38,843 2,825 Enhanced Market Fund...................................... 96,292 19,153 Large Cap Equity.......................................... 30,963 37,058 Capital Growth............................................ 379,137 403,571 Mid Cap Equity............................................ 119,137 52,192 Small Cap Fund............................................ 349,231 319,976 International Equity Fund................................. 81,374 36,267 Balanced Fund............................................. 125,576 130,487 Strategic Portfolios: Aggressive Growth Portfolio......... 27,348 22,761 Strategic Portfolios: Growth Portfolio.................... 32,737 25,609 Strategic Portfolios: Growth and Income Portfolio......... 110,684 101,734 Strategic Portfolios: Moderate Growth and Income Portfolio 41,225 36,206 Government Income Fund.................................... 113,889 125,266 Limited Term Bond Fund.................................... 105,537 56,262 Bond Fund................................................. 241,383 205,977 Municipal Bond Fund....................................... 26,175 56,825 Florida Tax-Exempt Fund................................... 5,296 3,660 Tennessee Tax-Exempt Fund................................. 10,774 11,808
Continued 106 AMSOUTH FUNDS Notes to Financial Statements 5. Affiliated Party Transactions: AIMCO serves as investment advisor for the Trust. Under the terms of the investment advisory agreement, AIMCO, a separate, wholly owned subsidiary of AmSouth Bank ("AmSouth"), is entitled to receive fees based on a percentage of the average daily net assets of each of the Funds as follows:
Annual Fee as a Percentage of Average Daily Net Assets --------------------- Value Fund................................................ 0.80% Select Equity Fund........................................ 0.80% Enhanced Market Fund...................................... 0.45% Large Cap................................................. 0.80% Capital Growth............................................ 0.80% Mid Cap Equity............................................ 1.00% Small Cap Fund............................................ 1.20% International Equity Fund................................. 1.25% Balanced Fund............................................. 0.80% Strategic Portfolios: Aggressive Growth Portfolio......... 0.20% Strategic Portfolios: Growth Portfolio.................... 0.20% Strategic Portfolios: Growth and Income Portfolio......... 0.20% Strategic Portfolios: Moderate Growth and Income Portfolio 0.20% Government Income Fund.................................... 0.65% Limited Term Bond Fund.................................... 0.65% Bond Fund................................................. 0.65% Municipal Bond Fund....................................... 0.65% Florida Tax-Exempt Fund................................... 0.65% Tennessee Tax-Exempt Fund................................. 0.65% Prime Money Market Fund................................... 0.40% U.S. Treasury Money Market Fund........................... 0.40% Treasury Reserve Money Market Fund........................ 0.40% Tax-Exempt Money Market Fund.............................. 0.40% Institutional Prime Obligations Money Market Fund......... 0.20%
AmSouth serves as Custodian for the Trust, with the exception of the International Equity Fund. Pursuant to the Custodian Agreement with the Trust, AmSouth receives compensation from each Fund for such services in an amount equal to an asset-based fee plus fixed fees charged for certain portfolio transactions and out-of-pocket expenses. The Bank of New York serves the International Equity Fund as the custodian. BISYS Fund Services Limited Partnership d/b/a BISYS Fund Services ("BISYS"), an Ohio Limited Partnership, BISYS Fund Services Ohio, Inc. ("BISYS Ohio"), and BISYS Fund Services, Inc. ("BISYS Inc.") are subsidiaries of the BISYS Group, Inc. ASO Services Company ("ASO"), a wholly owned subsidiary of the BISYS Group, Inc., serves the Funds as Administrator ("Administrator"). Under the terms of the administration agreement, the Administrator receives a fee computed based on an annual percentage of 0.20% of the average daily net assets of each of the Funds except the Institutional Prime Obligations Money Market Fund, which is 0.10%. AmSouth and BISYS Ohio, with whom certain officers and trustees of the Trust are affiliated, serve as the Funds' sub-administrators. 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 Administration duties, for which AmSouth receives a fee, paid by the Administrator, based on a percentage of each Fund's daily average net assets. ASO also serves the Funds as Fund Accountant for whom ASO receives a fee based on a percentage of each Fund's average daily net assets. Continued 107 AMSOUTH FUNDS Notes to Financial Statements Affiliated Party Transactions (continued) Pursuant to its agreement with the Administrator, BISYS Ohio, as sub-administrator, is entitled to compensation as mutually agreed upon from time to time by it and the Administrator. BISYS serves as the Funds' distributor and is entitled to receive commissions on sales of shares of the variable net asset value funds. For the year ended July 31, 2003, BISYS received $2,962,534 from commissions earned on sales of shares of the Funds' variable net asset value funds. BISYS reallowed $2,844 to affiliated broker dealers of the Fund's shares. BISYS receives no fees from the Funds for providing distribution services to the Funds. BISYS Ohio, serves the Funds as Transfer Agent. Under the terms of the Transfer Agent Agreement, BISYS Ohio, receives a fee based on a percentage of each Fund's average daily net assets, plus out of pocket charges. Class A and Class I of the Trust are subject to a Shareholder Servicing Plan (the "Servicing Plan") permitting payment of compensation to financial institutions that agree to provide certain administrative support services for their customers or account holders. Each Fund has entered into a specific arrangement with BISYS for the provision of such services and reimburses BISYS for its cost of providing these services, subject to a maximum rate of 0.25% of the Class A Shares and 0.15% of the Class I Shares of the average daily net assets of each of the Funds. Class B Shares, Class 2 Shares and Class 3 Shares of the Trust are subject to a Distribution and Shareholder Servicing Plan (the "Distribution Plan") permitting payment of compensation to a participating organization as payment for its services or expenses in connection with distribution assistance of the Funds' Class B Shares Class 2 Shares and Class 3 Shares to the participating organizations customers. Each Fund has entered into a specific arrangement with BISYS for the provision of such services and pays BISYS for its cost of providing such services, subject to a maximum rate of 1.00% of the average daily net assets of the Class B Shares of each of the Funds, which includes a Shareholder Servicing Fee of 0.25% of the average daily net assets of the Class B Shares of each Fund. Class 2 Shares and Class 3 Shares are subject to a maximum rate of 0.25% and 0.50% of daily average net assets, respectively, for such services. During the period there were no commissions paid to affiliated brokers for security transactions. AIMCO, AmSouth, ASO, BISYS, and BISYS Ohio have voluntarily agreed to waive a portion of their fees. These expense waivers are voluntary and may be discontinued at any time. 6. Concentration of Credit Risk The Municipal Bond Fund invests a large portion of its assets in tax-exempt debt obligations issued by the State of Alabama, its municipalities, counties, and other taxing districts. The issuers' abilities to meet their obligations may be affected by Alabama's economic, regional, and political developments. The Florida Tax-Exempt Fund invests substantially all of its assets in a non-diversified portfolio of tax-exempt debt obligations primarily consisting of securities issued by the State of Florida, its municipalities, counties and other taxing districts. The issuers' abilities to meet their obligations may be affected by Florida's economic, regional, and political developments. The Tennessee Tax-Exempt Fund invests substantially all of its assets in a non-diversified portfolio of tax-exempt debt obligations primarily consisting of securities issued by the State of Tennessee, its municipalities, counties and other taxing districts. The issuers' abilities to meet their obligations may be affected by Tennessee's economic, regional, and political developments. 7. Capital Share Transactions: The Trust has issued three classes of Fund shares: Class A Shares, Class I Shares, and Class B Shares in the Prime Money Market Fund and the variable net asset funds. The Trust has issued three classes of fund shares in the Institutional Prime Obligations Money Market Fund: Class 1, Class 2 and Class 3. The Trust has issued two classes of Fund shares: Class A Shares and Class I Shares in the other money market funds. Each class of shares in a Fund has identical rights and privileges except with respect to fees paid under shareholder servicing or distribution plans, expenses allocable exclusively to each class of shares, voting rights on matters affecting a single class of shares, and the exchange privilege of each class of shares. Transactions in capital shares for the Funds were as follows (amounts in thousands): Continued 108 AMSOUTH FUNDS Notes to Financial Statements 7. Capital Share Transactions (continued)
---------------------------------------- Class A Shares: --------------------------------------- Proceeds Cost of Total from shares Dividends shares Class A issued reinvested redeemed Shares ----------- ---------- -------- ------- Value Fund Year Ended July 31, 2003. $39,558(a) 4,804 (33,262) 11,100 Year Ended July 31, 2002. $55,652 10,874 (26,570) 39,956 Select Equity Fund Year Ended July 31, 2003. $ 3,518 22 (1,523) 2,017 Year Ended July 31, 2002. $ 2,927 8 (913) 2,022 Enhanced Market Fund Year Ended July 31, 2003. $ 6,711 123 (4,476) 2,358 Year Ended July 31, 2002. $ 6,196 350 (7,540) (994) Large Cap Fund Year Ended July 31, 2003. $44,810 2,565 (21,821) 25,554 Year Ended July 31, 2002. $32,795 3,488 (25,199) 11,084 Capital Growth Fund Year Ended July 31, 2003. $11,310 -- (5,662) 5,648 Year Ended July 31, 2002. $63,690(d) -- (62,591) 1,099 Mid Cap Fund Year Ended July 31, 2003. $ 4,350 7 (4,347) 10 Year Ended July 31, 2002. $ 2,640 -- (4,320) (1,680) Small Cap Fund Year Ended July 31, 2003. $12,165 -- (11,416) 749 Year Ended July 31, 2002. $23,941 -- (24,892) (951) International Equity Fund Year Ended July 31, 2003. $76,156 2 (76,657) (499) Year Ended July 31, 2002. $23,798 -- (22,173) 1,625 Balanced Fund Year Ended July 31, 2003. $17,167 2,508 (13,840) 5,835 Year Ended July 31, 2002. $36,964 3,681 (16,459) 24,186 Strategic Portfolios: Aggressive Growth Portfolio Year Ended July 31, 2003. $ 5,884 1 (3,329) 2,556 Year Ended July 31, 2002. $ 8,969 450 (1,213) 8,206 Strategic Portfolios: Growth Portfolio Year Ended July 31, 2003. $ 7,283 67 (1,619) 5,731 Year Ended July 31, 2002. $ 4,690 188 (579) 4,299 Strategic Portfolios: Growth & Income Portfolio Year Ended July 31, 2003. $16,228 311 (3,905) 12,634 Year Ended July 31, 2002. $13,493 635 (4,314) 9,814 Strategic Portfolios: Moderate Growth & Income Portfolio Year Ended July 31, 2003. $ 5,828 180 (1,760) 4,248 Year Ended July 31, 2002. $ 7,077 136 (771) 6,442
CAPITAL TRANSACTIONS (amounts in thousands): ------------------------------------------------------------------------------------------------------- Class B Shares: Class I Shares: -------------------------------------- ----------------------------------------- Proceeds Cost of Total Proceeds Cost of Total from shares Dividends shares Class B from shares Dividends shares Class I issued reinvested redeemed Shares issued reinvested redeemed Shares ----------- ---------- -------- ------- ----------- ---------- -------- ------- Value Fund Year Ended July 31, 2003. 19,110(b) 595 (6,057) 13,648 123,675(c) 10,502 (171,990) (37,813) Year Ended July 31, 2002. 11,633 1,064 (2,952) 9,745 187,113 22,992 (136,455) 73,650 Select Equity Fund Year Ended July 31, 2003. 3,648 8 (1,194) 2,462 37,387 59 (5,212) 32,234 Year Ended July 31, 2002. 4,276 1 (779) 3,498 1,932 19 (351) 1,600 Enhanced Market Fund Year Ended July 31, 2003. 2,347 8 (2,044) 311 98,456 135 (17,107) 81,484 Year Ended July 31, 2002. 1,458 158 (3,392) (1,776) 10,828 172 (16,790) (5,790) Large Cap Fund Year Ended July 31, 2003. 4,266 819 (4,573) 512 65,963 11,719 (98,249) (20,567) Year Ended July 31, 2002. 7,098 1,482 (6,393) 2,187 83,707 20,143 (87,776) 16,074 Capital Growth Fund Year Ended July 31, 2003. 962 -- (1,806) (844) 54,309 1 (92,454) (38,144) Year Ended July 31, 2002. 4,235(e) -- (2,167) 2,068 114,640(f) -- (90,933) 23,707 Mid Cap Fund Year Ended July 31, 2003. 501 -- (1,607) (1,106) 81,930 102 (11,094) 70,938 Year Ended July 31, 2002. 1,036 -- (2,906) (1,870) 40,396 -- (42,611) (2,215) Small Cap Fund Year Ended July 31, 2003. 334 -- (354) (20) 83,733 -- (54,410) 29,323 Year Ended July 31, 2002. 693 -- (759) (66) 108,660 -- (89,867) 18,793 International Equity Fund Year Ended July 31, 2003. 1,247 -- (1,000) 247 211,555 196 (174,391) 37,360 Year Ended July 31, 2002. 245 -- (193) 52 365,870 52 (297,719) 68,203 Balanced Fund Year Ended July 31, 2003. 5,980 482 (4,005) 2,457 7,572 2,204 (17,859) (8,083) Year Ended July 31, 2002. 12,662 538 (3,453) 9,747 15,330 3,747 (42,740) (23,663) Strategic Portfolios: Aggressive Growth Portfolio Year Ended July 31, 2003. 1,299 -- (182) 1,117 3,307 2 (3,670) (361) Year Ended July 31, 2002. 654 48 (68) 634 4,578 1,140 (9,341) (3,623) Strategic Portfolios: Growth Portfolio Year Ended July 31, 2003. 2,822 7 (493) 2,336 2,438 100 (4,615) (2,077) Year Ended July 31, 2002. 954 62 (414) 602 2,444 559 (6,139) (3,136) Strategic Portfolios: Growth & Income Portfolio Year Ended July 31, 2003. 2,492 18 (455) 2,055 9,776 844 (17,353) (6,733) Year Ended July 31, 2002. 666 80 (485) 261 9,646 3,144 (22,457) (9,667) Strategic Portfolios: Moderate Growth & Income Portfolio Year Ended July 31, 2003. 1,922 22 (217) 1,727 3,448 402 (5,056) (1,206) Year Ended July 31, 2002. 608 43 (757) (106) 5,177 854 (6,137) (106)
-------------------- Total net increase (decrease) from capital transactions -------------------- Value Fund Year Ended July 31, 2003. $(13,065) Year Ended July 31, 2002. $123,351 Select Equity Fund Year Ended July 31, 2003. $ 36,713 Year Ended July 31, 2002. $ 7,120 Enhanced Market Fund Year Ended July 31, 2003. $ 84,153 Year Ended July 31, 2002. $ (8,560) Large Cap Fund Year Ended July 31, 2003. $ 5,499 Year Ended July 31, 2002. $ 29,345 Capital Growth Fund Year Ended July 31, 2003. $(33,340) Year Ended July 31, 2002. $ 26,874 Mid Cap Fund Year Ended July 31, 2003. $ 69,842 Year Ended July 31, 2002. $ (5,765) Small Cap Fund Year Ended July 31, 2003. $ 30,052 Year Ended July 31, 2002. $ 17,776 International Equity Fund Year Ended July 31, 2003. $ 37,108 Year Ended July 31, 2002. $ 69,880 Balanced Fund Year Ended July 31, 2003. $ 209 Year Ended July 31, 2002. $ 10,270 Strategic Portfolios: Aggressive Growth Portfolio Year Ended July 31, 2003. $ 3,312 Year Ended July 31, 2002. $ 5,217 Strategic Portfolios: Growth Portfolio Year Ended July 31, 2003. $ 5,990 Year Ended July 31, 2002. $ 1,765 Strategic Portfolios: Growth & Income Portfolio Year Ended July 31, 2003. $ 7,956 Year Ended July 31, 2002. $ 408 Strategic Portfolios: Moderate Growth & Income Portfolio Year Ended July 31, 2003. $ 4,769 Year Ended July 31, 2002. $ 6,230
-------- (a)Proceeds from Shares Issued include $18,206 issued in connection with the AmSouth Equity Income Fund Merger. (b)Proceeds from Shares Issued include $17,577 issued in connection with the AmSouth Equity Income Fund Merger. (c)Proceeds from Shares Issued include $28,903 issued in connection with the AmSouth Equity Income Fund Merger. (d)Proceeds from Shares Issued include $2,993 issued in connection with the AmSouth Growth Fund Merger. (e)Proceeds from Shares Issued include $3,051 issued in connection with the AmSouth Growth Fund Merger. (f)Proceeds from Shares Issued include $3,939 issued in connection with the AmSouth Growth Fund Merger. Continued 109 AMSOUTH FUNDS Notes to Financial Statements 7. Capital Share Transactions (continued)
------------------------------------- Class A Shares: ------------------------------------ Total Class A Issued Reinvested Redeemed Shares ------ ---------- -------- ------- Value Fund Year Ended July 31, 2003..................... 3,327(a) 407 (2,737) 997 Year Ended July 31, 2002..................... 3,029 628 (1,580) 2,077 Select Equity Fund Year Ended July 31, 2003..................... 321 2 (142) 181 Year Ended July 31, 2002..................... 252 1 (79) 174 Enhanced Market Fund Year Ended July 31, 2003..................... 748 14 (498) 264 Year Ended July 31, 2002..................... 568 31 (702) (103) Large Cap Fund Year Ended July 31, 2003..................... 3,012 174 (1,451) 1,735 Year Ended July 31, 2002..................... 1,717 178 (1,334) 561 Capital Growth Fund Year Ended July 31, 2003..................... 1,379 -- (713) 666 Year Ended July 31, 2002..................... 6,684(d) -- (6,419) 265 Mid Cap Fund Year Ended July 31, 2003..................... 478 1 (484) (5) Year Ended July 31, 2002..................... 242 -- (405) (163) Small Cap Fund Year Ended July 31, 2003..................... 1,914 -- (1,810) 104 Year Ended July 31, 2002..................... 2,829 -- (2,937) (108) International Equity Fund Year Ended July 31, 2003..................... 10,512 -- (10,473) 39 Year Ended July 31, 2002..................... 2,845 -- (2,625) 220 Balanced Fund Year Ended July 31, 2003..................... 1,565 231 (1,274) 522 Year Ended July 31, 2002..................... 3,078 311 (1,407) 1,982 Strategic Portfolios: Aggressive Growth Portfolio Year Ended July 31, 2003..................... 861 -- (474) 387 Year Ended July 31, 2002..................... 1,028 52 (145) 935 Strategic Portfolios: Growth Portfolio Year Ended July 31, 2003..................... 957 9 (215) 751 Year Ended July 31, 2002..................... 528 22 (69) 481 Strategic Portfolios: Growth & Income Portfolio Year Ended July 31, 2003..................... 1,954 37 (471) 1,520 Year Ended July 31, 2002..................... 1,466 70 (487) 1,049 Strategic Portfolios: Moderate Growth & Income Portfolio Year Ended July 31, 2003..................... 670 21 (203) 488 Year Ended July 31, 2002..................... 773 15 (85) 703
SHARE TRANSACTIONS (amounts in thousands): ------------------------------------------------------------------------ Class B Shares: Class I Shares: ----------------------------------- ------------------------------------ Total Total Class B Class I Issued Reinvested Redeemed Shares Issued Reinvested Redeemed Shares ------ ---------- -------- ------- ------ ---------- -------- ------- Value Fund Year Ended July 31, 2003..................... 1,665(b) 51 (518) 1,198 10,567(c) 892 (14,458) (2,999) Year Ended July 31, 2002..................... 659 62 (188) 533 11,533 1,331 (7,697) 5,167 Select Equity Fund Year Ended July 31, 2003..................... 335 1 (114) 222 3,447 5 (475) 2,977 Year Ended July 31, 2002..................... 374 -- (71) 303 167 2 (31) 138 Enhanced Market Fund Year Ended July 31, 2003..................... 261 1 (235) 27 11,073 15 (1,893) 9,195 Year Ended July 31, 2002..................... 134 14 (319) (171) 963 15 (1,497) (519) Large Cap Fund Year Ended July 31, 2003..................... 294 58 (319) 33 4,431 791 (6,640) (1,418) Year Ended July 31, 2002..................... 371 78 (352) 97 4,371 1,026 (4,505) 892 Capital Growth Fund Year Ended July 31, 2003..................... 124 -- (242) (118) 6,892 -- (11,671) (4,779) Year Ended July 31, 2002..................... 539(e) -- (245) 294 12,204(f) -- (9,367) 2,837 Mid Cap Fund Year Ended July 31, 2003..................... 56 -- (182) (126) 9,201 11 (1,198) 8,014 Year Ended July 31, 2002..................... 96 -- (279) (183) 3,652 -- (3,862) (210) Small Cap Fund Year Ended July 31, 2003..................... 53 -- (58) (5) 12,769 -- (8,161) 4,608 Year Ended July 31, 2002..................... 85 -- (95) (10) 12,942 -- (10,553) 2,389 International Equity Fund Year Ended July 31, 2003..................... 163 -- (130) 33 29,150 27 (23,678) 5,499 Year Ended July 31, 2002..................... 30 -- (23) 7 42,983 6 (34,647) 8,342 Balanced Fund Year Ended July 31, 2003..................... 549 45 (371) 223 687 203 (1,663) (773) Year Ended July 31, 2002..................... 1,071 46 (301) 816 1,270 316 (3,548) (1,962) Strategic Portfolios: Aggressive Growth Portfolio Year Ended July 31, 2003..................... 185 -- (27) 158 472 -- (529) (57) Year Ended July 31, 2002..................... 74 6 (9) 71 527 131 (1,092) (434) Strategic Portfolios: Growth Portfolio Year Ended July 31, 2003..................... 366 1 (67) 300 316 13 (603) (274) Year Ended July 31, 2002..................... 110 7 (50) 67 280 64 (696) (352) Strategic Portfolios: Growth & Income Portfolio Year Ended July 31, 2003..................... 293 2 (55) 240 1,173 100 (2,076) (803) Year Ended July 31, 2002..................... 71 9 (57) 23 1,053 343 (2,437) (1,041) Strategic Portfolios: Moderate Growth & Income Portfolio Year Ended July 31, 2003..................... 222 3 (26) 199 397 46 (586) (143) Year Ended July 31, 2002..................... 65 5 (84) (14) 571 92 (666) (3)
------------------ Total net increase (decrease) from share transactions ------------------ Value Fund Year Ended July 31, 2003..................... (804) Year Ended July 31, 2002..................... 7,777 Select Equity Fund Year Ended July 31, 2003..................... 3,380 Year Ended July 31, 2002..................... 615 Enhanced Market Fund Year Ended July 31, 2003..................... 9,486 Year Ended July 31, 2002..................... (793) Large Cap Fund Year Ended July 31, 2003..................... 350 Year Ended July 31, 2002..................... 1,550 Capital Growth Fund Year Ended July 31, 2003..................... (4,231) Year Ended July 31, 2002..................... 3,396 Mid Cap Fund Year Ended July 31, 2003..................... 7,883 Year Ended July 31, 2002..................... (556) Small Cap Fund Year Ended July 31, 2003..................... 4,707 Year Ended July 31, 2002..................... 2,271 International Equity Fund Year Ended July 31, 2003..................... 5,571 Year Ended July 31, 2002..................... 8,569 Balanced Fund Year Ended July 31, 2003..................... (28) Year Ended July 31, 2002..................... 836 Strategic Portfolios: Aggressive Growth Portfolio Year Ended July 31, 2003..................... 488 Year Ended July 31, 2002..................... 572 Strategic Portfolios: Growth Portfolio Year Ended July 31, 2003..................... 777 Year Ended July 31, 2002..................... 196 Strategic Portfolios: Growth & Income Portfolio Year Ended July 31, 2003..................... 957 Year Ended July 31, 2002..................... 31 Strategic Portfolios: Moderate Growth & Income Portfolio Year Ended July 31, 2003..................... 544 Year Ended July 31, 2002..................... 686
-------- (a)Shares Issued include 1,563 issued in connection with the AmSouth Equity Income Fund Merger. (b)Shares Issued include 1,534 issued in connection with the AmSouth Equity Income Fund Merger. (c)Shares Issued include 2,487 issued in connection with the AmSouth Equity Income Fund Merger. (d)Shares Issued include 335 issued in connection with the AmSouth Growth Fund Merger. (e)Shares Issued include 359 issued in connection with the AmSouth Growth Fund Merger. (f)Shares Issued include 442 issued in connection with the AmSouth Growth Fund Merger. Continued 110 AMSOUTH FUNDS Notes to Financial Statements 7. Capital Share Transactions (continued)
---------------------------------------- Class A Shares: ---------------------------------------- Proceeds Cost of Total from shares Dividends shares Class A issued reinvested redeemed Shares ----------- ---------- -------- ------- Government Income Fund Year Ended July 31, 2003. $32,625(a) 672 (20,921) 12,376 Year Ended July 31, 2002. $11,811 268 (9,054) 3,025 Limited Term Bond Fund Year Ended July 31, 2003. $50,401 907 (35,598) 15,710 Year Ended July 31, 2002. $31,115 590 (19,060) 12,645 Bond Fund Year Ended July 31, 2003. $41,640 2,337 (28,589) 15,388 Year Ended July 31, 2002. $56,327 1,126 (39,185) 18,268 Municipal Bond Fund Year Ended July 31, 2003. $ 8,975 361 (4,348) 4,988 Year Ended July 31, 2002. $ 7,654 317 (4,613) 3,358 Florida Tax-Exempt Fund Year Ended July 31, 2003. $ 4,496 145 (1,595) 3,046 Year Ended July 31, 2002. $ 5,830 108 (5,302) 636 Tennessee Tax-Exempt Fund Year Ended July 31, 2003. $11,462(d) 47 (5,575) 5,934 Year Ended July 31, 2002. $ 2,149 39 (2,556) (368)
CAPITAL TRANSACTIONS (amounts in thousands): -------------------------------------------------------------------------------------------------------- Class B Shares: Class I Shares: --------------------------------------- ------------------------------------------ Proceeds Cost of Total Proceeds Cost of Total from shares Dividends shares Class B from shares Dividends shares Class I issued reinvested redeemed Shares issued reinvested redeemed Shares ----------- ---------- -------- ------- ----------- ---------- --------- -------- Government Income Fund Year Ended July 31, 2003. 8,586 (b) 244 (1,915) 6,915 117,972 (c) 7,062 (129,514) (4,480) Year Ended July 31, 2002. 3,199 68 (1,390) 1,877 95,621 8,263 (147,390) (43,506) Limited Term Bond Fund Year Ended July 31, 2003. 15,766 387 (3,084) 13,069 103,771 1,776 (75,245) 30,302 Year Ended July 31, 2002. 7,823 151 (385) 7,589 69,321 2,152 (77,179) (5,706) Bond Fund Year Ended July 31, 2003. 3,069 395 (2,994) 470 172,275 11,759 (168,484) 15,550 Year Ended July 31, 2002. 4,361 274 (2,425) 2,210 190,908 9,856 (238,136) (37,372) Municipal Bond Fund Year Ended July 31, 2003. 1,416 57 (794) 679 50,653 726 (69,776) (18,397) Year Ended July 31, 2002. 2,561 49 (609) 2,001 61,599 424 (78,531) (16,508) Florida Tax-Exempt Fund Year Ended July 31, 2003. 2,049 59 (899) 1,209 5,932 14 (9,949) (4,003) Year Ended July 31, 2002. 1,835 29 (660) 1,204 12,870 32 (16,552) (3,650) Tennessee Tax-Exempt Fund Year Ended July 31, 2003. 1,613 (e) 34 (533) 1,114 6,990 4 (16,505) (9,511) Year Ended July 31, 2002. 594 31 (264) 361 2,920 7 (11,751) (8,824)
--------------------- Total net increase (decrease) from capital transactions -------------------- Government Income Fund Year Ended July 31, 2003. $ 14,811 Year Ended July 31, 2002. $(38,604) Limited Term Bond Fund Year Ended July 31, 2003. $ 59,081 Year Ended July 31, 2002. $ 14,528 Bond Fund Year Ended July 31, 2003. $ 31,408 Year Ended July 31, 2002. $(16,894) Municipal Bond Fund Year Ended July 31, 2003. $(12,730) Year Ended July 31, 2002. $(11,149) Florida Tax-Exempt Fund Year Ended July 31, 2003. $ 252 Year Ended July 31, 2002. $ (1,810) Tennessee Tax-Exempt Fund Year Ended July 31, 2003. $ (2,463) Year Ended July 31, 2002. $ (8,831)
(a)Proceeds from Shares Issued Include $6,985 issued in connection with the AmSouth Limited Term U.S. Government Fund Merger. (b)Proceeds from Shares Issued include $5,656 issued in connection with the AmSouth Limited Term U.S. Government Fund Merger. (c)Proceeds from Shares Issued include $32,828 issued in connection with the AmSouth Limited Term U.S. Government Fund Merger. (d)Proceeds from Shares Issued include $8,770 issued in connection with the AmSouth Limited Term Tennessee Tax-Exempt Fund Merger. (e)Proceeds from Shares Issued include $1,001 issued in connection with the AmSouth Limited Term Tennessee Tax-Exempt Fund Merger. Continued 111 AMSOUTH FUNDS Notes to Financial Statements 7. Capital Share Transactions (continued)
SHARE TRANSACTIONS (amounts in thousands): ---------------------------------------------------------------------------------------------------- Class A Shares:* Class B Shares:** -------------------------------------------- ---------------------------------------- ------------ Total Total Class A Class B Issued Reinvested Redeemed Shares Issued Reinvested Redeemed Shares Issued --------- ---------- ---------- -------- ------- ---------- -------- -------- --------- Government Income Fund Year Ended July 31, 2003 3,175 (a) 65 (2,035) 1,205 836 (b) 24 (187) 673 11,455 (c) Year Ended July 31, 2002 1,158 26 (888) 296 314 7 (138) 183 9,397 Limited Term Bond Fund Year Ended July 31, 2003 4,681 85 (3,313) 1,453 1,465 36 (286) 1,215 9,638 Year Ended July 31, 2002 2,934 56 (1,798) 1,192 738 14 (36) 716 6,532 Bond Fund Year Ended July 31, 2003 3,585 203 (2,462) 1,326 265 34 (258) 41 14,844 Year Ended July 31, 2002 5,033 101 (3,513) 1,621 389 25 (216) 198 17,050 Municipal Bond Fund Year Ended July 31, 2003 854 34 (414) 474 136 5 (76) 65 4,808 Year Ended July 31, 2002 748 31 (454) 325 251 5 (60) 196 6,057 Florida Tax-Exempt Fund Year Ended July 31, 2003 412 13 (146) 279 187 5 (82) 110 544 Year Ended July 31, 2002 551 10 (501) 60 173 3 (62) 114 1,211 Tennessee Tax-Exempt Fund Year Ended July 31, 2003 1,099 (d) 4 (531) 572 154 (e) 3 (50) 107 664 Year Ended July 31, 2002 209 4 (255) (42) 58 3 (26) 35 288 Prime Money Market Fund+ Year Ended July 31, 2003 425,086 3,333 (541,125) (112,706) 2,741 10 (3,075) (324) 1,595,328 Year Ended July 31, 2002 832,105 8,937 (854,262) (13,220) 5,186 20 (3,223) 1,983 2,486,495 U.S. Treasury Money Market Fund+ Year Ended July 31, 2003 198,548 46 (241,151) (42,557) -- -- -- -- 352,826 Year Ended July 31, 2002 184,653 177 (188,921) (4,091) -- -- -- -- 399,964 Treasury Reserve Money Market Fund+ Year Ended July 31, 2003 167,611 33 (219,473) (51,829) -- -- -- 330,764 Year Ended July 31, 2002 308,525 102 (309,821) (1,194) -- -- -- -- 523,281 Tax-Exempt Money Market Fund+ Year Ended July 31, 2003 67,924 181 (65,765) 2,340 -- -- -- -- 250,044 Year Ended July 31, 2002 61,744 398 (71,460) (9,318) -- -- -- -- 260,876 Institutional Prime Obligations Money Market Fund+ Year Ended July 31, 2003 1,137,073 1 (1,151,117) (14,043) 443,865 -- (562,072) (118,207) 815,952 Year Ended July 31, 2002 1,213,441 7 (1,367,574) (154,126) 554,286 -- (513,941) 40,345 555,259
--------------------------------------------------- Class I Shares:*** -------------------------------- ------------------ Total Total net increase Class I (decrease) from Reinvested Redeemed Shares share transactions ---------- ---------- -------- ------------------ Government Income Fund Year Ended July 31, 2003 687 (12,569) (427) 1,451 Year Ended July 31, 2002 816 (14,477) (4,264) (3,785) Limited Term Bond Fund Year Ended July 31, 2003 165 (6,990) 2,813 5,481 Year Ended July 31, 2002 203 (7,271) (536) 1,372 Bond Fund Year Ended July 31, 2003 1,021 (14,518) 1,347 2,714 Year Ended July 31, 2002 883 (21,189) (3,256) (1,437) Municipal Bond Fund Year Ended July 31, 2003 69 (6,633) (1,756) (1,217) Year Ended July 31, 2002 42 (7,688) (1,589) (1,068) Florida Tax-Exempt Fund Year Ended July 31, 2003 1 (912) (367) 22 Year Ended July 31, 2002 3 (1,565) (351) (177) Tennessee Tax-Exempt Fund Year Ended July 31, 2003 -- (1,574) (910) (231) Year Ended July 31, 2002 1 (1,158) (869) (876) Prime Money Market Fund+ Year Ended July 31, 2003 616 (2,144,526) (548,582) (661,612) Year Ended July 31, 2002 1,398 (2,463,080) 24,813 13,576 U.S. Treasury Money Market Fund+ Year Ended July 31, 2003 261 (414,017) (60,930) (103,487) Year Ended July 31, 2002 682 (429,720) (29,074) (33,165) Treasury Reserve Money Market Fund+ Year Ended July 31, 2003 97 (507,589) (176,728) (228,557) Year Ended July 31, 2002 304 (571,920) (48,335) (49,529) Tax-Exempt Money Market Fund+ Year Ended July 31, 2003 39 (295,803) (45,720) (43,380) Year Ended July 31, 2002 23 (237,662) 23,237 13,919 Institutional Prime Obligations Money Market Fund+ Year Ended July 31, 2003 386 (890.651) (74,313) (206,563) Year Ended July 31, 2002 564 (527,617) 28,206 (85,575)
-------- + Capital Transactions are done at par value of $1.00 per share. * Represents Class 2 Shares for Institutional Prime Obligations Money Market Fund. ** Represents Class 3 Shares for Institutional Prime Obligations Money Market Fund. ***Represents Class 1 Shares for Institutional Prime Obligations Money Market Fund. (a)Shares Issued include 681 issued in connection with the AmSouth Limited Term U.S. Government Fund Merger. (b)Shares Issued include 552 issued in connection with the AmSouth Limited Term U.S. Government Fund Merger. (c)Shares Issued include 3,202 issued in connection with the AmSouth Limited Term U.S. Government Fund Merger. (d)Shares Issued include 842 issued in connection with the AmSouth Limited Term Tennessee Tax-Exempt Fund Merger. (e)Shares Issued include 96 issued in connection with the AmSouth Limited Term Tennessee Tax-Exempt Fund Merger. Continued 112 AMSOUTH FUNDS Notes to Financial Statements 8. Eligible Distributions: The AmSouth Funds designate the following eligible distributions for the dividends received deductions for corporations for the year ended July 31, 2003:
Percentage ---------- Value Fund............................................... 100.00% Select Equity Fund....................................... 100.00% Enhanced Market Fund..................................... 100.00% Large Cap Fund........................................... 100.00% Mid Cap Fund............................................. 100.00% Balanced Fund............................................ 43.61% Stategic Portfolios: Growth Portfolio.................... 33.83% Stategic Portfolios: Growth and Income Portfolio......... 5.70% Stategic Portfolios: Moderate Growth and Income Portfolio 12.51%
9. Exempt-Interest Income Designations: The AmSouth Funds designate the following exempt-interest dividends for the taxable year ended July 31, 2003 (amounts in thousands):
Tax-Exempt Distribution ------------ Municipal Bond Fund......... $12,498 Florida Tax-Exempt Fund..... 2,170 Tennessee Tax-Exempt Fund... 1,524 Tax-Exempt Money Market Fund 1,151
10. Federal Income Tax Information: The accompanying table details distributions from long-term capital gains for the following funds for the year ended July 31, 2003 (amounts in thousands):
Long-Term Capital Gains ----------------- Value Fund................................................ $21,984 Select Equity Fund........................................ 3 Large Cap Fund............................................ 19,502 Balanced Fund............................................. 2,170 Strategic Portfolios: Moderate Growth and Income Portfolio 97 Government Income Fund.................................... 4,336 Bond Fund................................................. 10,151 Municipal Bond Fund....................................... 1,374 Florida Tax-Exempt Fund................................... 6
Continued 113 AMSOUTH FUNDS Notes to Financial Statements 10. Federal Income Tax Information (Continued) As of July 31, 2003 the following Funds have capital loss carryforwards, which are available to offset future capital gains, if any on security transactions to the extent provided for in the Code (amounts in thousands):
Amount Expires ------- ------- Value Fund............................................... $ 1,059 2006 284 2007 4,005 2008 25,113 2009 4,926 2010 6,939 2011 Enhanced Market Fund..................................... 392 2010 5,604 2011 Large Cap Fund........................................... 4,493 2011 Capital Growth Fund...................................... 1,283 2009 15,143 2009 42,600 2010 55,985 2011 Mid Cap Fund............................................. 315 2007 3,640 2008 3,898 2009 18,622 2010 2,982 2011 Small Cap Fund........................................... 10,492 2009 35,914 2010 29,777 2011 International Equity Fund................................ 37 2009 13,504 2010 24,219 2011 Strategic Portfolios Aggressive Growth Portfolio......... 59 2010 1,912 2011 Strategic Portfolios Growth Portfolio.................... 2,498 2011 Strategic Portfolios Growth and Income Portfolio......... 6,515 2011 Strategic Portfolios Moderate Growth and Income Portfolio 2,544 2011 Limited Term Bond Fund................................... 4 2004 304 2005 117 2006 338 2007 50 2008 518 2009 38 2010 Prime Money Market Fund.................................. 2 2007 Tax-Exempt Money Market Fund............................. 117 2006 92 2007 75 2009 15 2011
Continued 114 AMSOUTH FUNDS Notes to Financial Statements 10. Federal Income Tax Information (Continued) The tax character of distributions paid during the fiscal year ended July 31, 2003 was as follows (amounts in thousands):
Distributions paid from ------------------------ Net Net Total Tax Tax Return Total Investment Long Term Taxable Exempt of Distributions Income Capital Gains Distributions Distributions Capital Paid ---------- ------------- ------------- ------------- ---------- ------------- Value Fund....................................... $ 6,394 $21,984 $28,378 -- -- $28,378 Select Equity Fund............................... 153 3 156 -- -- 156 Enhanced Market Fund............................. 569 -- 569 -- -- 569 Large Cap........................................ 841 19,503 20,344 -- 91 20,435 Capital Growth................................... 6 -- -- -- 6 Mid Cap Equity................................... 156 -- 156 -- 156 Small Cap Fund................................... -- -- -- -- -- -- International Equity Fund........................ 428 -- 428 -- -- 428 Balanced Fund.................................... 3,525 1,996 5,521 -- -- 5,521 Strategic Portfolios: Aggressive Growth Portfolio 3 -- -- -- -- 3 Strategic Portfolios: Growth Portfolio........... 177 -- 177 -- -- 177 Strategic Portfolios: Growth and Income Portfolio 1,195 -- 1,195 -- -- 1,195 Strategic Portfolios: Moderate Growth and Income Portfolio...................................... 511 97 608 -- -- 608 Limited Term Bond Fund........................... 8,085 -- 8,085 -- -- 8,085 Government Income Fund........................... 11,880 3,843 15,723 -- -- 15,723 Bond Fund........................................ 30,195 8,620 38,815 -- -- 38,815 Municipal Bond Fund.............................. 16 1,175 1,191 12,498 -- 13,689 Florida Tax-Exempt Fund.......................... -- 6 6 2,170 -- 2,176 Tennessee Tax-Exempt Fund........................ -- -- -- 1,524 -- 1,524 Prime Money Market Fund.......................... 6,176 -- 6,176 -- -- 6,176 U.S. Treasury Money Market Fund.................. 1,122 -- 1,122 -- -- 1,122 Treasury Reserve Money Market Fund............... 1,197 -- 1,197 -- -- 1,197 Tax-Exempt Money Market Fund..................... 49 -- 49 1,054 -- 1,103 Institutional Prime Obligations Money Market Fund........................................... 5,274 -- 5,274 -- -- 5,274
Continued 115 AMSOUTH FUNDS Notes to Financial Statements 10. Federal Income Tax Information (Continued) As of July 31, 2003 the components of accumulated earnings/(deficit) on a tax basis was as follows (The differences between book-basis and tax-basis unrealized appreciation/(depreciation) is attributed primarily to tax deferral of losses on wash sales and the difference between book and tax amortization methods for premium and market discounts.) (amounts in thousands):
Undistributed Accumulated Undistributed Undistributed Long-Term Capital Unrealized Tax-Exempt Ordinary Capital Accumulated Distributions and Other Appreciation/ Income Income Gains Earnings Payable Losses Depreciation ------------- ------------- ------------- ----------- ------------- ----------- ------------- Value Fund...................... $ -- $ 337 $ -- $ 337 $ -- $(145,902) $ 79,632 Select Equity Fund.............. -- -- 333 333 -- -- 3,556 Enhanced Market Fund............ -- 35 -- 35 -- (6,232) 1,446 Large Cap....................... -- -- -- -- -- (4,493) 137,257 Capital Growth.................. -- -- -- -- -- (131,987) 22,323 Mid Cap Equity.................. -- -- -- -- -- (29,490) 14,482 Small Cap Fund.................. -- -- -- -- -- (85,568) 28,074 International Equity Fund....... -- 2,663 -- 2,663 -- (37,857) 10,646 Balanced Fund................... -- 100 -- 100 -- (3,870) 20,737 Strategic Portfolios: Aggressive Growth Portfolio............... -- -- -- -- -- (6,545) (654) Strategic Portfolios: Growth Portfolio...................... -- 23 -- 23 -- (3,631) (157) Strategic Portfolios: Growth and Income Portfolio............... -- 117 -- 117 -- (9,169) (437) Strategic Portfolios: Moderate Growth and Income Portfolio...................... -- 53 -- 53 -- (2,544) 1,033 Limited Term Bond Fund.......... -- 193 -- 193 (1,369) 4,984 Government Income Fund.......... -- 361 313 674 -- -- 9,558 Bond Fund....................... -- 676 5,008 5,684 -- -- 29,848 Municipal Bond Fund............. 596 -- 325 921 -- -- 21,256 Florida Tax-Exempt Fund......... 47 -- 26 73 -- -- 2,737 Tennessee Tax-Exempt Fund....... 82 -- 101 183 -- -- 1,703 Prime Money Market Fund......... -- 203 -- 203 (203) (2) -- U.S. Treasury Money Market Fund........................... -- 34 -- 34 (27) -- -- Treasury Reserve Money Market Fund........................... -- 25 -- 25 (21) -- -- Tax-Exempt Money Market Fund........................... 26 -- -- 26 (26) (299) -- Institutional Prime Obligations Money Market Fund.............. -- 298 -- 298 (267) -- --
Total Accumulated Earnings/ (Deficit) ----------- Value Fund...................... $ (65,933) Select Equity Fund.............. 3,889 Enhanced Market Fund............ (4,751) Large Cap....................... 132,764 Capital Growth.................. (109,664) Mid Cap Equity.................. (15,008) Small Cap Fund.................. (57,494) International Equity Fund....... (24,548) Balanced Fund................... 16,967 Strategic Portfolios: Aggressive Growth Portfolio............... (7,199) Strategic Portfolios: Growth Portfolio...................... (3,765) Strategic Portfolios: Growth and Income Portfolio............... (9,489) Strategic Portfolios: Moderate Growth and Income Portfolio...................... (1,458) Limited Term Bond Fund.......... 3,808 Government Income Fund.......... 10,232 Bond Fund....................... 35,532 Municipal Bond Fund............. 22,177 Florida Tax-Exempt Fund......... 2,810 Tennessee Tax-Exempt Fund....... 1,886 Prime Money Market Fund......... (2) U.S. Treasury Money Market Fund........................... 7 Treasury Reserve Money Market Fund........................... 4 Tax-Exempt Money Market Fund........................... (299) Institutional Prime Obligations Money Market Fund.............. 31
Continued 116 AMSOUTH FUNDS Notes to Financial Statements 10. Federal Income Tax Information (Continued) Under current tax law, capital losses realized after October 31, within the Fund's fiscal year may be deferred and treated as occurring on the first day of the following fiscal year. The following deferred losses will be treated as arising on the first day of the fiscal year ended July 31, 2004 (amounts in thousands): Value Fund................................................ $103,576 Enhanced Market Fund...................................... 236 Capital Growth Fund....................................... 16,975 Mid Cap Fund.............................................. 33 Small Cap Fund............................................ 9,385 International Equity Fund................................. 97 Balanced Fund............................................. 3,870 Strategic Portfolios: Aggressive Growth Portfolio......... 4,673 Strategic Portfolios: Growth Portfolio.................... 1,132 Strategic Portfolios: Moderate Growth And Income Portfolio 2,655
For the Fiscal Year Ended July 31, 2003, dividends paid by the AmSouth Funds may be subject to a maximum tax rate of 15% as provided for by the Jobs and Growth Tax Relief Act of 2003. The funds designate the maximum amount allowable as taxed at a rate of 15%. Completed information will be reported in conjunction with the 2003 Form 1099-Div. (amounts in thousands):
Qualified Dividends Paid - -------------- Value Fund................................................ $3,760 Select Equity Fund........................................ 75 Enhanced Market Fund...................................... 434 Large Cap Fund............................................ 578 Mid Cap Fund.............................................. 121 Balanced Fund............................................. 845 Strategic Portfolios: Growth Portfolio.................... 43 Strategic Portfolios: Growth and Income Portfolio......... 119 Strategic Portfolios: Moderate Growth and Income Portfolio 36
Continued 117 AMSOUTH FUNDS Financial Highlights A SHARES Selected data for a share outstanding throughout the period indicated.
Investment Activities Less Dividends from ------------------------------------- -------------------------------- Net Realized Net Asset Net and Unrealized Net Realized Net Asset Value, Investment Gains (Losses) Total from Net Gains from Value, Beginning Income from Investments Investment Investment Investment Total End of Period (Loss) and Futures Activities Income Transactions Dividends of Period --------- ---------- ---------------- ---------- ---------- ------------ --------- --------- VALUE FUND Year Ended July 31, 2003...... $12.76 0.14 0.81 0.95 (0.13) (0.52) (0.65) $13.06 Year Ended July 31, 2002...... $20.38 0.09 (6.01) (5.92) (0.09) (1.61) (1.70) $12.76 Year Ended July 31, 2001+..... $19.54 0.11 3.64 3.75 (0.14) (2.77) (2.91) $20.38 Year Ended July 31, 2000...... $25.25 0.23 (2.21) (1.98) (0.23) (3.50) (3.73) $19.54 Year Ended July 31, 1999...... $24.60 0.20 3.11 3.31 (0.19) (2.47) (2.66) $25.25 SELECT EQUITY FUND Year Ended July 31, 2003...... $10.98 0.05 0.91 0.96 (0.05) -- (0.05) $11.89 Year Ended July 31, 2002...... $11.23 0.02 (0.25) (0.23) (0.02) -- (0.02) $10.98 Year Ended July 31, 2001+..... $ 8.72 0.01 2.51 2.52 (0.01) -- (0.01) $11.23 Year Ended July 31, 2000+..... $11.88 0.07 (2.35) (2.28) (0.07) (0.81) (0.88) $ 8.72 Period Ended July 31, 1999(a). $10.00 0.04 1.91 1.95 (0.06) (0.01) (0.07) $11.88 ENHANCED MARKET FUND Year Ended July 31, 2003...... $ 9.16 0.08 0.70 0.78 (0.07) -- (0.07) $ 9.87 Year Ended July 31, 2002...... $12.27 0.04 (2.96) (2.92) (0.03) (0.16) (0.19) $ 9.16 Year Ended July 31, 2001+..... $14.64 0.03 (2.15) (2.12) (0.03) (0.22) (0.25) $12.27 Year Ended July 31, 2000...... $13.86 0.07 1.23 1.30 (0.07) (0.45) (0.52) $14.64 Period Ended July 31, 1999(a). $10.00 0.09 3.89 3.98 (0.09) (0.03) (0.12) $13.86 LARGE CAP FUND Year Ended July 31, 2003...... $15.45 0.01 1.53 1.54 (0.02) (0.63) (0.65) $16.34 Year Ended July 31, 2002...... $21.22 (0.01) (4.57) (4.58) -- (1.19) (1.19) $15.45 Year Ended July 31, 2001+..... $28.14 (0.04) (2.82) (2.86) -- (4.06) (4.06) $21.22 Period Ended July 31, 2000(b). $28.02 (0.01) 0.14 0.13 (0.01) -- (0.01) $28.14 Year Ended December 31, 1999+........................ $27.55 0.03 5.07 5.10 (0.03) (4.60) (4.63) $28.02 Period Ended December 31, 1998(c)...................... $23.01 0.05 5.79 5.84 (0.05) (1.25) (1.30) $27.55 Year Ended February 28, 1998.. $16.68 0.11 6.48 6.59 (0.11) (0.15) (0.26) $23.01
Ratios (to average net assets)/Supplemental Data -------------------------------------------------------------- Total Return Net Expenses (before Portfolio Net Assets, (Excluding Investment Net Reductions/ Turnover End of Period Sales Charge) Income Expenses Reimbursements) Rate* (000's) ------------- ---------- -------- ---------------- --------- ------------- VALUE FUND Year Ended July 31, 2003...... 8.02% 1.17% 1.36% 1.39% 117% $112,701 Year Ended July 31, 2002...... (31.21)% 0.49% 1.35% 1.36% 59% $ 97,393 Year Ended July 31, 2001+..... 21.10% 0.53% 1.34% 1.35% 43% $113,164 Year Ended July 31, 2000...... (8.19)% 1.07% 1.35% 1.35% 17% $ 45,255 Year Ended July 31, 1999...... 14.92% 0.82% 1.33% 1.34% 18% $ 70,740 SELECT EQUITY FUND Year Ended July 31, 2003...... 8.77% 0.48% 1.34% 1.49% 8% $ 7,034 Year Ended July 31, 2002...... (2.01)% 0.28% 1.46% 1.71% 38% $ 4,511 Year Ended July 31, 2001+..... 28.96% 0.05% 1.71% 2.07% 19% $ 2,665 Year Ended July 31, 2000+..... (19.86)% 0.67% 1.44% 1.96% 25% $ 2,512 Period Ended July 31, 1999(a). 19.44%^ 0.43%^^ 1.13%^^ 1.81%^^ 10% $ 10,258 ENHANCED MARKET FUND Year Ended July 31, 2003...... 8.54% 0.81% 1.00% 1.12% 27% $ 21,431 Year Ended July 31, 2002...... (24.10)% 0.41% 1.07% 1.19% 34% $ 17,473 Year Ended July 31, 2001+..... (14.60)% 0.26% 1.04% 1.14% 42% $ 24,666 Year Ended July 31, 2000...... 9.46% 0.48% 1.01% 1.22% 30% $ 20,555 Period Ended July 31, 1999(a). 39.93%^ 0.79%^^ 0.88%^^ 1.52%^^ 36% $ 14,365 LARGE CAP FUND Year Ended July 31, 2003...... 10.45% 0.09% 1.26% 1.39% 7% $ 88,989 Year Ended July 31, 2002...... (22.75)% (0.05)% 1.26% 1.37% 11% $ 57,330 Year Ended July 31, 2001+..... (11.72)% (0.16)% 1.25% 1.36% 10% $ 66,813 Period Ended July 31, 2000(b). 0.45%^ (0.07)%^^ 1.14%^^ 1.37%^^ 10% $ 81,099 Year Ended December 31, 1999+........................ 18.85% 0.12% 1.04% 1.39% 15% $ 79,211 Period Ended December 31, 1998(c)...................... 25.83%^ 0.21%^^ 1.03%^^ 1.03%^^ 3% $ 57,772 Year Ended February 28, 1998.. 39.74% 0.54% 0.99% (d) 6% $715,631
+ Net investment income (loss) is based on average shares outstanding during the period. * Portfolio turnover is calculated on the basis of the fund as a whole without distinguishing between the classes of shares issued. ^ Not annualized. ^^ Annualized. (a)For the period from September 1, 1998 (commencement of operations) through July 31, 1999. (b)For the period from January 1, 2000 through July 31, 2000. In conjunction with the reorganization of the AmSouth Funds, the Fund changed its fiscal year end to July 31. (c)For the period from March 1, 1998 through December 31, 1998. In conjunction with the reorganization of the ISG Funds, the Fund changed its fiscal year end to December 31. (d)There were no fee reductions in this period. See notes to financial statements. 118 AMSOUTH FUNDS Financial Highlights A SHARES Selected data for a share outstanding throughout the period indicated.
Investment Activities Less Dividends from ----------------------------------- -------------------------------- Net Realized and Unrealized Gains (Losses) from Net Asset Net Investments, Net Realized Value, Investment Futures, and Total from Net Gains from Beginning Income Foreign Investment Investment Investment Total Redemption of Period (Loss) Currencies Activities Income Transactions Dividends Fees --------- ---------- -------------- ---------- ---------- ------------ --------- ---------- CAPITAL GROWTH FUND Year Ended July 31, 2003....... $ 7.96 (0.03) 0.82 0.79 -- -- -- -- Year Ended July 31, 2002....... $10.86 (0.07) (2.83) (2.90) -- -- -- -- Year Ended July 31, 2001+...... $14.97 (0.09) (2.86) (2.95) -- (1.16) (1.16) -- Period Ended July 31, 2000(a).. $14.37 (0.04) 0.64 0.60 -- -- -- -- Year Ended December 31, 1999+.. $14.20 (0.04) 2.97 2.93 -- (2.76) (2.76) -- Year Ended December 31, 1998... $12.80 (0.01) 3.89 3.88 -- (2.48) (2.48) -- MID CAP FUND Year Ended July 31, 2003....... $ 9.39 0.01 1.03 1.04 (0.01) -- (0.01) -- Year Ended July 31, 2002....... $12.06 (0.16) (2.51) (2.67) -- -- -- -- Year Ended July 31, 2001+...... $16.67 (0.17) (4.44) (4.61) -- -- -- -- Period Ended July 31, 2000(a)+. $17.33 (0.13) (0.53) (0.66) -- -- -- -- Period Ended December 31, 1999(b)+...................... $10.00 (0.14) 7.47 7.33 -- -- -- -- SMALL CAP FUND Year Ended July 31, 2003....... $ 7.13 (0.07) 0.16 0.09 -- -- -- -- Year Ended July 31, 2002....... $10.12 (0.11) (2.88) (2.99) -- -- -- -- Year Ended July 31, 2001+...... $12.52 (0.14) (1.05) (1.19) -- (1.21) (1.21) -- Year Ended July 31, 2000....... $ 8.40 (0.08) 4.20 4.12 -- -- -- -- Year Ended July 31, 1999....... $ 9.14 (0.10) (0.64) (0.74) -- -- -- -- INTERNATIONAL EQUITY FUND Year Ended July 31, 2003....... $ 7.81 0.01 0.87 0.88 (0.01) -- (0.01) 0.01 Year Ended July 31, 2002....... $ 9.49 0.02 (1.70) (1.68) -- -- -- -- Year Ended July 31, 2001+...... $12.36 0.06 (2.54) (2.48) (0.03) (0.36) (0.39) -- Period Ended July 31, 2000(a)+. $13.27 0.05 (0.96) (0.91) -- -- -- -- Year Ended December 31, 1999... $10.58 0.02 2.81 2.83 (0.14) -- (0.14) -- Period Ended December 31, 1998(c)....................... $10.46 0.03 0.12 0.15 (0.03) -- (0.03) -- Period Ended February 28, 1998(d)....................... $10.00 (0.02) 0.49 0.47 (0.01) -- (0.01) --
Ratios (to average net assets)/Supplemental Data ----------------------------------------------------------- Total Net Asset Return Expenses Net Assets, Value, (Excluding Net (before Portfolio End of End Sales Investment Net Reductions/ Turnover Period of Period Charge) Income Expenses Reimbursements) Rate* (000's) --------- ---------- ---------- -------- --------------- --------- ----------- CAPITAL GROWTH FUND Year Ended July 31, 2003....... $ 8.75 9.92% (0.47)% 1.31% 1.38% 151% $23,915 Year Ended July 31, 2002....... $ 7.96 (26.70)% (0.76)% 1.31% 1.37% 115% $16,457 Year Ended July 31, 2001+...... $10.86 (21.27)% (0.67)% 1.30% 1.36% 100% $19,574 Period Ended July 31, 2000(a).. $14.97 4.18%^ (0.49)%^^ 1.32%^^ 1.37%^^ 91% $14,137 Year Ended December 31, 1999+.. $14.37 21.85% (0.33)% 1.32% 1.33% 178% $10,310 Year Ended December 31, 1998... $14.20 32.05% (0.19)% 1.28% 1.29% 152% $ 4,631 MID CAP FUND Year Ended July 31, 2003....... $10.42 11.08% 0.08% 1.15% 1.65% 59% $ 9,085 Year Ended July 31, 2002....... $ 9.39 (22.14)% (1.31)% 1.66% 1.83% 221% $ 8,234 Year Ended July 31, 2001+...... $12.06 (27.65)% (1.17)% 1.57% 1.65% 120% $12,546 Period Ended July 31, 2000(a)+. $16.67 (3.81)%^ (1.27)%^^ 1.62%^^ 1.65%^^ 39% $11,536 Period Ended December 31, 1999(b)+...................... $17.33 73.30%^ (1.62)%^^ 2.28%^^ 2.29%^^ 20% $ 2,357 SMALL CAP FUND Year Ended July 31, 2003....... $ 7.22 1.26% (1.25)% 1.60% 1.78% 221% $ 5,929 Year Ended July 31, 2002....... $ 7.13 (29.55)% (1.25)% 1.61% 1.77% 227% $ 5,114 Year Ended July 31, 2001+...... $10.12 (10.33)% (1.22)% 1.61% 1.77% 220% $ 8,346 Year Ended July 31, 2000....... $12.52 49.05% (1.11)% 1.53% 1.85% 318% $ 8,408 Year Ended July 31, 1999....... $ 8.40 (8.10)% (1.07)% 1.66% 2.68% 208% $ 1,073 INTERNATIONAL EQUITY FUND Year Ended July 31, 2003....... $ 8.69 11.35% 1.25% 1.36% 1.86% 18% $ 4,711 Year Ended July 31, 2002....... $ 7.81 (17.70)% 0.35% 1.60% 1.89% 160% $ 3,932 Year Ended July 31, 2001+...... $ 9.49 (20.62)% 0.52% 1.62% 1.89% 45% $ 2,685 Period Ended July 31, 2000(a)+. $12.36 (6.78)%^ 0.69%^^ 1.69%^^ 2.01%^^ 32% $ 1,799 Year Ended December 31, 1999... $13.27 26.77% 0.26% 1.59% 2.12% 40% $ 1,033 Period Ended December 31, 1998(c)....................... $10.58 1.42%^ 0.71%^^ 1.81%^^ 2.16%^^ 62% $ 149 Period Ended February 28, 1998(d)....................... $10.46 4.71%^ (0.48)%^^ 1.77%^^ 2.27%^^ 21% $26,533
+ Net investment income (loss) is based on average shares outstanding during the period. * Portfolio turnover is calculated on the basis of the fund as a whole without distinguishing between the classes of shares issued. ^ Not annualized. ^^ Annualized. (a)For the period from January 1, 2000 through July 31, 2000. In conjunction with the reorganization of the AmSouth Funds, the Fund changed its fiscal year end to July 31. (b)For the period from May 4, 1999 (commencement of operations) through December 31, 1999. (c)For the period from March 1, 1998 through December 31, 1998. In conjunction with the reorganization of the ISG Funds, the Fund changed its fiscal year end to December 31. (d)For the period from August 15, 1997 (commencement of operations) through February 28, 1998. See notes to financial statements. 119 AMSOUTH FUNDS Financial Highlights A SHARES Selected data for a share outstanding throughout the period indicated.
Investment Activities Less Dividends from -------------------------------------- -------------------------------- Net Asset Net Net Realized Net Realized Net Asset Value, Investment and Unrealized Total from Net Gains from Value, Beginning Income Gains (Losses) Investment Investment Investment Total End of Period (Loss) from Investments* Activities Income Transactions Dividends of Period --------- ---------- ----------------- ---------- ---------- ------------ --------- --------- BALANCED FUND Year Ended July 31, 2003..... $10.89 0.22 0.66 0.88 (0.26) (0.14) (0.40) $11.37 Year Ended July 31, 2002..... $12.46 0.30 (1.20) (0.90) (0.31) (0.36) (0.67) $10.89 Year Ended July 31, 2001+.... $12.48 0.36 1.28 1.64 (0.39) (1.27) (1.66) $12.46 Year Ended July 31, 2000..... $14.93 0.44 (0.64) (0.20) (0.47) (1.78) (2.25) $12.48 Year Ended July 31, 1999..... $15.19 0.41 0.93 1.34 (0.40) (1.20) (1.60) $14.93 STRATEGIC PORTFOLIOS: AGGRESSIVE GROWTH PORTFOLIO Year Ended July 31, 2003..... $ 7.04 -- 0.69 0.69 -- -- -- $ 7.73 Year Ended July 31, 2002..... $ 9.91 (0.02) (2.21) (2.23) -- (0.64) (0.64) $ 7.04 Year Ended July 31, 2001+.... $11.53 0.08 (0.39) (0.31) (0.15) (1.16) (1.31) $ 9.91 Period Ended July 31, 2000(a) $11.54 0.02 (0.01) 0.01 (0.02) -- (0.02) $11.53 Period Ended December 31, 1999(b).................... $10.00 0.09 1.60 1.69 (0.11) (0.04) (0.15) $11.54 STRATEGIC PORTFOLIOS: GROWTH PORTFOLIO Year Ended July 31, 2003..... $ 7.59 0.07 0.62 0.69 (0.07) -- (0.07) $ 8.21 Year Ended July 31, 2002..... $ 9.38 0.08 (1.48) (1.40) (0.09) (0.30) (0.39) $ 7.59 Year Ended July 31, 2001+.... $10.47 0.23 (0.42) (0.19) (0.23) (0.67) (0.90) $ 9.38 Period Ended July 31, 2000(a) $10.58 0.07 (0.11) (0.04) (0.07) -- (0.07) $10.47 Period Ended December 31, 1999(c).................... $ 9.93 0.14 0.73 0.87 (0.14) (0.08) (0.22) $10.58 STRATEGIC PORTFOLIOS: GROWTH AND INCOME PORTFOLIO Year Ended July 31, 2003..... $ 8.33 0.12 0.56 0.68 (0.13) -- (0.13) $ 8.88 Year Ended July 31, 2002..... $ 9.76 0.18 (1.14) (0.96) (0.19) (0.28) (0.47) $ 8.33 Year Ended July 31, 2001+.... $10.54 0.24 (0.07) 0.17 (0.32) (0.63) (0.95) $ 9.76 Period Ended July 31, 2000(a) $10.48 0.14 0.04 0.18 (0.12) -- (0.12) $10.54 Period Ended December 31, 1999(d).................... $10.10 0.11 0.41 0.52 (0.11) (0.03) (0.14) $10.48 STRATEGIC PORTFOLIOS: MODERATE GROWTH AND INCOME PORTFOLIO Year Ended July 31, 2003..... $ 8.58 0.16 0.50 0.66 (0.17) (0.03) (0.20) $ 9.04 Year Ended July 31, 2002..... $ 9.74 0.21 (0.94) (0.73) (0.23) (0.20) (0.43) $ 8.58 Year Ended July 31, 2001+.... $10.06 0.32 0.15 0.47 (0.34) (0.45) (0.79) $ 9.74 Period Ended July 31, 2000(a) $ 9.96 0.14 0.10 0.24 (0.14) -- (0.14) $10.06 Period Ended December 31, 1999(e).................... $ 9.86 0.17 0.16 0.33 (0.17) (0.06) (0.23) $ 9.96
Ratios (to average net assets)/Supplemental Data ------------------------------------------------------------- Total Return Net Expenses (before Portfolio Net Assets, (Excluding Investment Net Reductions/ Turnover End of Period Sales Charge) Income Expenses Reimbursements) Rate** (000's) ------------- ---------- -------- ---------------- --------- ------------- BALANCED FUND Year Ended July 31, 2003..... 8.34% 2.03% 1.34% 1.42% 86% $78,679 Year Ended July 31, 2002..... (7.55)% 2.57% 1.34% 1.41% 34% $69,674 Year Ended July 31, 2001+.... 13.93% 2.90% 1.31% 1.38% 14% $54,978 Year Ended July 31, 2000..... (1.05)% 3.28% 1.35% 1.37% 16% $21,951 Year Ended July 31, 1999..... 9.40% 2.67% 1.34% 1.35% 23% $43,223 STRATEGIC PORTFOLIOS: AGGRESSIVE GROWTH PORTFOLIO Year Ended July 31, 2003..... 9.81% (0.02)% 0.66% 1.09% 100% $11,310 Year Ended July 31, 2002..... (23.76)% (0.31)% 0.71% 1.12% 50% $ 7,565 Year Ended July 31, 2001+.... (3.42)% 0.78% 0.79% 1.20% 36% $ 1,393 Period Ended July 31, 2000(a) 0.06%^ 0.26%^^ 0.86%^^ 1.24%^^ 22% $ 476 Period Ended December 31, 1999(b).................... 16.92%^ 1.65%^^ 0.96%^^ 6.10%^^ 95% $ 450 STRATEGIC PORTFOLIOS: GROWTH PORTFOLIO Year Ended July 31, 2003..... 9.18% 0.94% 0.61% 1.06% 128% $10,978 Year Ended July 31, 2002..... (15.49)% 0.96% 0.71% 1.14% 63% $ 4,448 Year Ended July 31, 2001+.... (2.04)% 2.31% 0.78% 1.22% 38% $ 981 Period Ended July 31, 2000(a) (0.43)%^ 1.27%^^ 0.86%^^ 1.25%^^ 97% $ 763 Period Ended December 31, 1999(c).................... 8.85%^ 2.44%^^ 0.94%^^ 9.41%^^ 76% $ 164 STRATEGIC PORTFOLIOS: GROWTH AND INCOME PORTFOLIO Year Ended July 31, 2003..... 8.30% 1.51% 0.62% 0.86% 135% $28,745 Year Ended July 31, 2002..... (10.17)% 2.04% 0.60% 0.82% 69% $14,312 Year Ended July 31, 2001+.... 1.61% 2.44% 0.63% 0.87% 51% $ 6,535 Period Ended July 31, 2000(a) 1.69%^ 2.15%^^ 0.72%^^ 0.88%^^ 21% $ 271 Period Ended December 31, 1999(d).................... 5.21%^ 2.44%^^ 0.95%^^ 2.27%^^ 57% $ 535 STRATEGIC PORTFOLIOS: MODERATE GROWTH AND INCOME PORTFOLIO Year Ended July 31, 2003..... 7.85% 1.87% 0.64% 1.07% 136% $10,988 Year Ended July 31, 2002..... (7.80)% 2.48% 0.65% 1.07% 65% $ 6,236 Year Ended July 31, 2001+.... 4.91% 3.26% 0.77% 1.20% 62% $ 231 Period Ended July 31, 2000(a) 2.43%^ 2.85%^^ 0.91%^^ 1.26%^^ 21% $ 48 Period Ended December 31, 1999(e).................... 3.37%^ 3.32%^^ 0.93%^^ 9.78%^^ 124% $ 172
+ Net investment income (loss) is based on average shares outstanding during the period. * Represents investments in affiliates for the Strategic Portfolios. ** Portfolio turnover is calculated on the basis of the fund as a whole without distinguishing between the classes of shares issued. ^ Not annualized. ^^ Annualized. (a)For the period from January 1, 2000 through July 31, 2000. In conjunction with the reorganization of the AmSouth Funds, the Fund changed its fiscal year end to July 31. (b)For the period from January 13, 1999 (commencement of operations) through December 31, 1999. (c)For the period from February 11, 1999 (commencement of operations) through December 31, 1999. (d)For the period from March 8, 1999 (commencement of operations) through December 31, 1999. (e)For the period from February 9, 1999 (commencement of operations) through December 31, 1999. See notes to financial statements. 120 AMSOUTH FUNDS Financial Highlights A SHARES Selected data for a share outstanding throughout the period indicated.
Investment Activities Less Dividends from ------------------------------------ -------------------------------- Net Realized Net Asset and Unrealized Net Realized Net Asset Value, Net Gains (Losses) Total from Net Gains from Value, Beginning Investment from Investment Investment Investment Total End of of Period Income Investments Activities Income Transactions Dividends Period --------- ---------- -------------- ---------- ---------- ------------ --------- --------- GOVERNMENT INCOME FUND Year Ended July 31, 2003.. $10.26 0.41 (0.05) 0.36 (0.42) (0.15) (0.57) $10.05 Year Ended July 31, 2002.. $10.10 0.48 0.20 0.68 (0.52) -- (0.52) $10.26 Year Ended July 31, 2001+. $ 9.60 0.55 0.50 1.05 (0.55) -- (0.55) $10.10 Year Ended July 31, 2000.. $ 9.62 0.56 (0.04) 0.52 (0.54) -- (0.54) $ 9.60 Year Ended July 31, 1999.. $ 9.88 0.54 (0.28) 0.26 (0.52) -- (0.52) $ 9.62 LIMITED TERM BOND FUND Year Ended July 31, 2003.. $10.70 0.36 0.01 0.37 (0.42) -- (0.42) $10.65 Year Ended July 31, 2002.. $10.55 0.48 0.18 0.66 (0.51) -- (0.51) $10.70 Year Ended July 31, 2001+. $10.13 0.57 0.43 1.00 (0.58) -- (0.58) $10.55 Year Ended July 31, 2000.. $10.29 0.59 (0.13) 0.46 (0.62) -- (0.62) $10.13 Year Ended July 31, 1999.. $10.43 0.57 (0.15) 0.42 (0.56) -- (0.56) $10.29 BOND FUND Year Ended July 31, 2003.. $11.43 0.46 0.11 0.57 (0.52) (0.15) (0.67) $11.33 Year Ended July 31, 2002.. $11.13 0.53 0.36 0.89 (0.56) (0.03) (0.59) $11.43 Year Ended July 31, 2001+. $10.52 0.58 0.62 1.20 (0.59) -- (0.59) $11.13 Year Ended July 31, 2000.. $10.63 0.58 (0.06) 0.52 (0.61) (0.02) (0.63) $10.52 Year Ended July 31, 1999.. $11.05 0.61 (0.32) 0.29 (0.58) (0.13) (0.71) $10.63
Ratios (to average net assets)/Supplemental Data ------------------------------------------------------------ Total Return (Excluding Net Expenses (before Portfolio Net Assets, Sales Investment Net Reductions/ Turnover End of Period Charge) Income Expenses Reimbursements) Rate* (000's) ------------ ---------- -------- ---------------- --------- ------------- GOVERNMENT INCOME FUND Year Ended July 31, 2003.. 3.47% 3.84% 1.01% 1.23% 43% $20,721 Year Ended July 31, 2002.. 6.96% 4.74% 1.00% 1.21% 18% $ 8,800 Year Ended July 31, 2001+. 11.25% 5.47% 0.99% 1.20% 25% $ 5,672 Year Ended July 31, 2000.. 5.55% 5.77% 0.85% 1.30% 42% $ 5,879 Year Ended July 31, 1999.. 2.62% 5.35% 0.70% 1.90% 27% $ 5,436 LIMITED TERM BOND FUND Year Ended July 31, 2003.. 3.52% 3.28% 0.98% 1.22% 32% $38,211 Year Ended July 31, 2002.. 6.44% 4.54% 1.00% 1.21% 29% $22,813 Year Ended July 31, 2001+. 10.12% 5.43% 1.00% 1.22% 44% $ 9,918 Year Ended July 31, 2000.. 4.59% 5.60% 0.96% 1.24% 34% $ 7,913 Year Ended July 31, 1999.. 4.01% 5.49% 0.81% 1.23% 39% $ 2,716 BOND FUND Year Ended July 31, 2003.. 5.04% 3.97% 0.99% 1.22% 33% $50,591 Year Ended July 31, 2002.. 8.19% 4.69% 0.99% 1.20% 35% $35,869 Year Ended July 31, 2001+. 11.63% 5.30% 0.99% 1.20% 24% $16,877 Year Ended July 31, 2000.. 5.10% 5.54% 0.91% 1.21% 27% $ 9,500 Year Ended July 31, 1999.. 2.58% 5.46% 0.81% 1.20% 18% $ 7,070
+ Net investment income (loss) is based on average shares outstanding during the period. * Portfolio turnover is calculated on the basis of the fund as a whole without distinguishing between the classes of shares issued. See notes to financial statements. 121 AMSOUTH FUNDS Financial Highlights A SHARES Selected data for a share outstanding throughout the period indicated.
Investment Activities Less Dividends from ------------------------------------- -------------------------------- Net Asset Net Realized Net Realized Net Asset Value, Net and Unrealized Total from Net Gains from Value, Beginning Investment Gains (Losses) Investment Investment Investment Total End of of Period Income from Investments Activities Income Transactions Dividends Period --------- ---------- ---------------- ---------- ---------- ------------ --------- --------- MUNICIPAL BOND FUND Year Ended July 31, 2003.. $10.38 0.35 (0.05) 0.30 (0.33) (0.03) (0.36) $10.32 Year Ended July 31, 2002.. $10.18 0.37 0.23 0.60 (0.39) (0.01) (0.40) $10.38 Year Ended July 31, 2001+. $ 9.76 0.39 0.41 0.80 (0.38) -- (0.38) $10.18 Year Ended July 31, 2000.. $ 9.87 0.40 (0.06) 0.34 (0.40) (0.05) (0.45) $ 9.76 Year Ended July 31, 1999.. $10.13 0.41 (0.17) 0.24 (0.39) (0.11) (0.50) $ 9.87 FLORIDA TAX-EXEMPT FUND Year Ended July 31, 2003.. $10.79 0.36 (0.08) 0.28 (0.37) -- (0.37) $10.70 Year Ended July 31, 2002.. $10.51 0.39 0.27 0.66 (0.38) -- (0.38) $10.79 Year Ended July 31, 2001+. $10.16 0.40 0.35 0.75 (0.40) -- (0.40) $10.51 Year Ended July 31, 2000.. $10.22 0.44 (0.06) 0.38 (0.41) (0.03) (0.44) $10.16 Year Ended July 31, 1999.. $10.45 0.41 (0.18) 0.23 (0.40) (0.06) (0.46) $10.22 TENNESSEE TAX-EXEMPT FUND Year Ended July 31, 2003.. $10.37 0.29 (0.05) 0.24 (0.28) -- (0.28) $10.33 Year Ended July 31, 2002.. $10.10 0.31 0.27 0.58 (0.31) -- (0.31) $10.37 Year Ended July 31, 2001+. $ 9.74 0.36 0.36 0.72 (0.36) -- (0.36) $10.10 Period Ended July 31, 2000(a).................. $ 9.55 0.21 0.18 0.39 (0.20) -- (0.20) $ 9.74 Year Ended December 31, 1999..................... $10.19 0.33 (0.64) (0.31) (0.33) -- (0.33) $ 9.55 Year Ended December 31, 1998..................... $10.18 0.35 0.08 0.43 (0.35) (0.07) (0.42) $10.19
Ratios (to average net assets)/Supplemental Data ------------------------------------------------------------- Total Return Net Expenses (before Portfolio Net Assets, (Excluding Investment Net Reductions/ Turnover End of Period Sales Charge) Income Expenses Reimbursements) Rate* (000's) ------------- ---------- -------- ---------------- --------- ------------- MUNICIPAL BOND FUND Year Ended July 31, 2003.. 2.96% 3.35% 0.89% 1.21% 7% $16,385 Year Ended July 31, 2002.. 6.05% 3.72% 0.89% 1.20% 10% $11,553 Year Ended July 31, 2001+. 8.36% 3.88% 0.89% 1.20% 5% $ 8,022 Year Ended July 31, 2000.. 3.62% 4.12% 0.82% 1.20% 9% $ 6,516 Year Ended July 31, 1999.. 2.31% 4.01% 0.71% 1.20% 21% $ 2,694 FLORIDA TAX-EXEMPT FUND Year Ended July 31, 2003.. 2.58% 3.35% 0.84% 1.25% 6% $ 6,955 Year Ended July 31, 2002.. 6.38% 3.64% 0.87% 1.26% 13% $ 4,002 Year Ended July 31, 2001+. 7.46% 3.79% 0.90% 1.29% 7% $ 3,267 Year Ended July 31, 2000.. 3.99% 4.10% 0.74% 1.30% 11% $ 2,655 Year Ended July 31, 1999.. 2.06% 4.00% 0.59% 1.26% 34% $12,195 TENNESSEE TAX-EXEMPT FUND Year Ended July 31, 2003.. 2.29% 2.70% 1.07% 1.34% 21% $ 9,325 Year Ended July 31, 2002.. 5.87% 3.02% 1.08% 1.31% 60% $ 3,432 Year Ended July 31, 2001+. 7.55% 3.63% 1.09% 1.33% 123% $ 3,764 Period Ended July 31, 2000(a).................. 4.15%^ 3.78%^^ 1.13%^^ 1.27%^^ 23% $ 2,919 Year Ended December 31, 1999..................... (3.07)% 3.34% 1.25% 1.26% 64% $ 3,324 Year Ended December 31, 1998..................... 4.25% 3.37% 1.20% 1.20% 155% $ 2,919
+ Net investment income (loss) is based on average shares outstanding during the period. * Portfolio turnover is calculated on the basis of the fund as a whole without distinguishing between the classes of shares issued. ^ Not annualized. ^^ Annualized. (a)For the period from January 1, 2000 through July 31, 2000. In conjunction with the reorganization of the AmSouth Funds, the Fund changed its fiscal year end to July 31. See notes to financial statements. 122 AMSOUTH FUNDS Financial Highlights A SHARES+ Selected data for a share outstanding throughout the period indicated.
Investment Activities -------------------------------------- Less Net Asset Net Realized Dividends Net Asset Value, Net and Unrealized Total from from Net Value, Total Return Beginning Investment Gains (Losses) Investment Investment End (Excluding of Period Income from Investments Activities Income of Period Sales Charge) --------- ---------- ---------------- ---------- ---------- --------- ------------- PRIME MONEY MARKET FUND Year Ended July 31, 2003...... $1.000 0.006 -- 0.006 (0.006) $1.000 0.63% Year Ended July 31, 2002...... $1.000 0.015 -- 0.015 (0.015) $1.000 1.53% Year Ended July 31, 2001...... $1.000 0.049 -- 0.049 (0.049) $1.000 5.03% Year Ended July 31, 2000...... $1.000 0.051 -- 0.051 (0.051) $1.000 5.20% Year Ended July 31, 1999...... $1.000 0.044 -- 0.044 (0.044) $1.000 4.48% U.S. TREASURY MONEY MARKET FUND Year Ended July 31, 2003...... $1.000 0.004 0.004 (0.004) $1.000 0.45% Year Ended July 31, 2002...... $1.000 0.014 0.014 (0.014) $1.000 1.41% Year Ended July 31, 2001...... $1.000 0.046 -- 0.046 (0.046) $1.000 4.71% Year Ended July 31, 2000...... $1.000 0.046 -- 0.046 (0.046) $1.000 4.73% Year Ended July 31, 1999...... $1.000 0.040 -- 0.040 (0.040) $1.000 4.06% TREASURY RESERVE MONEY MARKET FUND Year Ended July 31, 2003...... $1.000 0.006 -- 0.006 (0.006) $1.000 0.56% Year Ended July 31, 2002...... $1.000 0.015 -- 0.015 (0.015) $1.000 1.53% Year Ended July 31, 2001...... $1.000 0.048 -- 0.048 (0.048) $1.000 4.95% Period Ended July 31, 2000(a). $1.000 0.030 -- 0.030 (0.030) $1.000 3.07%^ Year Ended December 31, 1999.. $1.000 0.043 -- 0.043 (0.043) $1.000 4.38% Year Ended December 31, 1998.. $1.000 0.046 -- 0.046 (0.046) $1.000 4.68% TAX-EXEMPT MONEY MARKET FUND Year Ended July 31, 2003...... $1.000 0.005 -- 0.005 (0.005) $1.000 0.48% Year Ended July 31, 2002...... $0.999 0.009 (0.001) 0.008 (0.009) $0.998 0.87% Year Ended July 31, 2001...... $0.998 0.028 0.001 0.029 (0.028) $0.999 2.83% Year Ended July 31, 2000...... $1.000 0.031 (0.002) 0.029 (0.031) $0.998 3.11% Year Ended July 31, 1999...... $1.000 0.026 -- 0.026 (0.026) $1.000 2.66% INSTITUTIONAL PRIME OBLIGATIONS MONEY MARKET FUND Year Ended July 31, 2003...... $1.000 0.009 -- 0.009 (0.009) $1.000 0.93% Year Ended July 31, 2002...... $1.000 0.018 -- 0.018 (0.018) $1.000 1.83% Year Ended July 31, 2001...... $1.000 0.052 -- 0.052 (0.052) $1.000 5.31% Year Ended July 31, 2000...... $1.000 0.054 -- 0.054 (0.054) $1.000 5.55% Period Ended July 31, 1999(b). $1.000 0.020 -- 0.020 (0.020) $1.000 1.96%^
Ratios (to average net assets)/Supplemental Data --------------------------------------------------- Net Expenses (before Net Assets, Investment Net Reductions/ End of Period Income Expenses Reimbursements) (000's) ---------- -------- ---------------- ------------- PRIME MONEY MARKET FUND Year Ended July 31, 2003...... 0.64% 0.80% 0.97% $439,061 Year Ended July 31, 2002...... 1.53% 0.79% 0.94% $551,767 Year Ended July 31, 2001...... 4.96% 0.77% 0.94% $564,977 Year Ended July 31, 2000...... 5.35% 0.75% 0.94% $645,275 Year Ended July 31, 1999...... 4.40% 0.78% 0.94% $136,078 U.S. TREASURY MONEY MARKET FUND Year Ended July 31, 2003...... 0.48% 0.96% 1.03% $ 54,476 Year Ended July 31, 2002...... 1.39% 0.95% 1.00% $ 97,033 Year Ended July 31, 2001...... 3.73% 0.92% 0.98% $101,125 Year Ended July 31, 2000...... 4.72% 0.85% 0.96% $ 11,817 Year Ended July 31, 1999...... 4.03% 0.79% 0.95% $ 4,390 TREASURY RESERVE MONEY MARKET FUND Year Ended July 31, 2003...... 0.60% 0.84% 1.01% $ 46,753 Year Ended July 31, 2002...... 1.54% 0.79% 0.96% $ 98,582 Year Ended July 31, 2001...... 4.90% 0.72% 0.95% $ 99,777 Period Ended July 31, 2000(a). 5.21%^^ 0.65%^^ 0.86%^^ $143,901 Year Ended December 31, 1999.. 4.28% 0.60% 0.70% $143,208 Year Ended December 31, 1998.. 4.56% 0.77% 0.78% $167,475 TAX-EXEMPT MONEY MARKET FUND Year Ended July 31, 2003...... 0.48% 0.79% 0.97% $ 33,748 Year Ended July 31, 2002...... 0.87% 0.81% 0.96% $ 31,408 Year Ended July 31, 2001...... 2.84% 0.80% 0.96% $ 40,728 Year Ended July 31, 2000...... 3.14% 0.71% 0.97% $ 51,260 Year Ended July 31, 1999...... 2.64% 0.59% 0.98% $ 22,844 INSTITUTIONAL PRIME OBLIGATIONS MONEY MARKET FUND Year Ended July 31, 2003...... 0.92% 0.51% 0.66% $193,468 Year Ended July 31, 2002...... 1.91% 0.50% 0.64% $207,511 Year Ended July 31, 2001...... 5.00% 0.50% 0.65% $361,629 Year Ended July 31, 2000...... 5.69% 0.45% 0.66% $180,873 Period Ended July 31, 1999(b). 4.45%^^ 0.49%^^ 0.72%^^ $ 26,000
+ Represents Class 2 Shares for Institutional Prime Obligations Money Market Fund. ^ Not annualized. ^^ Annualized. (a)For the period from January 1, 2000 through July 31, 2000. In conjunction with the reorganization of the AmSouth Funds, the Fund changed its fiscal year end to July 31. (b)For the period from February 19, 1999 (commencement of operations) through July 31, 1999. See notes to financial statements. 123 AMSOUTH FUNDS Financial Highlights B SHARES Selected data for a share outstanding throughout the period indicated.
Investment Activities Less Dividends from ------------------------------------- -------------------------------- Net Realized Net Asset Net and Unrealized Net Realized Net Asset Value, Investment Gains (Losses) Total from Net Gains from Value, Beginning Income from Investments Investment Investment Investment Total End of Period (Loss) and Futures Activities Income Transactions Dividends of Period --------- ---------- ---------------- ---------- ---------- ------------ --------- --------- VALUE FUND Year Ended July 31, 2003...... $12.57 0.05 0.79 0.84 (0.06) (0.52) (0.58) $12.83 Year Ended July 31, 2002...... $20.15 (0.02) (5.93) (5.95) (0.02) (1.61) (1.63) $12.57 Year Ended July 31, 2001+..... $19.41 (0.03) 3.58 3.55 (0.04) (2.77) (2.81) $20.15 Year Ended July 31, 2000...... $25.14 0.07 (2.19) (2.12) (0.11) (3.50) (3.61) $19.41 Year Ended July 31, 1999...... $24.55 0.02 3.10 3.12 (0.06) (2.47) (2.53) $25.14 SELECT EQUITY FUND Year Ended July 31, 2003...... $10.77 (0.02) 0.88 0.86 (0.02) -- (0.02) $11.61 Year Ended July 31, 2002...... $11.08 (0.03) (0.28) (0.31) -- -- -- $10.77 Year Ended July 31, 2001+..... $ 8.64 (0.08) 2.52 2.44 -- -- -- $11.08 Year Ended July 31, 2000+..... $11.83 (0.01) (2.34) (2.35) (0.03) (0.81) (0.84) $ 8.64 Period Ended July 31, 1999(a). $ 9.98 0.02 1.86 1.88 (0.02) (0.01) (0.03) $11.83 ENHANCED MARKET FUND Year Ended July 31, 2003...... $ 8.99 0.01 0.69 0.70 (0.01) -- (0.01) $ 9.68 Year Ended July 31, 2002...... $12.11 (0.05) (2.91) (2.96) -- (0.16) (0.16) $ 8.99 Year Ended July 31, 2001+..... $14.55 (0.06) (2.14) (2.20) (0.02) (0.22) (0.24) $12.11 Year Ended July 31, 2000...... $13.82 (0.04) 1.22 1.18 -- (0.45) (0.45) $14.55 Period Ended July 31, 1999(a). $10.30 0.03 3.55 3.58 (0.03) (0.03) (0.06) $13.82 LARGE CAP FUND Year Ended July 31, 2003...... $14.94 (0.09) 1.46 1.37 -- (0.63) (0.63) $15.68 Year Ended July 31, 2002...... $20.70 (0.15) (4.42) (4.57) -- (1.19) (1.19) $14.94 Year Ended July 31, 2001+..... $27.74 (0.21) (2.77) (2.98) -- (4.06) (4.06) $20.70 Period Ended July 31, 2000(b). $27.75 (0.13) 0.12 (0.01) -- -- -- $27.74 Year Ended December 31, 1999+........................ $27.54 (0.23) 5.04 4.81 -- (4.60) (4.60) $27.75 Period Ended December 31, 1998(c)...................... $25.98 -- 1.56 1.56 -- -- -- $27.54
Ratios (to average net assets)/Supplemental Data -------------------------------------------------------------- Total Return (Excluding Net Expenses (before Portfolio Net Assets, Redemption Investment Net Reductions/ Turnover End of Period Charge) Income Expenses Reimbursements) Rate* (000's) ---------- ---------- -------- ---------------- --------- ------------- VALUE FUND Year Ended July 31, 2003...... 7.17% 0.45% 2.11% 2.14% 117% $28,786 Year Ended July 31, 2002...... (31.68)% (0.27)% 2.10% 2.11% 59% $13,133 Year Ended July 31, 2001+..... 20.09% (0.16)% 2.09% 2.10% 43% $10,322 Year Ended July 31, 2000...... (8.86)% 0.32% 2.10% 2.11% 17% $ 7,949 Year Ended July 31, 1999...... 14.03% 0.05% 2.08% 2.09% 18% $12,394 SELECT EQUITY FUND Year Ended July 31, 2003...... 7.98% (0.28)% 2.08% 2.24% 8% $ 7,758 Year Ended July 31, 2002...... (2.77)% (0.45)% 2.19% 2.44% 38% $ 4,800 Year Ended July 31, 2001+..... 28.24% (0.75)% 2.44% 2.80% 19% $ 1,586 Year Ended July 31, 2000+..... (20.47)% (0.08)% 2.21% 2.72% 25% $ 715 Period Ended July 31, 1999(a). 18.83%^ (0.49)%^^ 1.99%^^ 2.58%^^ 10% $ 1,933 ENHANCED MARKET FUND Year Ended July 31, 2003...... 7.79% 0.06% 1.75% 1.87% 27% $ 9,566 Year Ended July 31, 2002...... (24.73)% (0.34)% 1.82% 1.94% 34% $ 8,644 Year Ended July 31, 2001+..... (15.28)% (0.48)% 1.80% 1.89% 42% $13,713 Year Ended July 31, 2000...... 8.65% (0.31)% 1.77% 1.93% 30% $17,095 Period Ended July 31, 1999(a). 34.85%^ (0.12)%^^ 1.73%^^ 2.28%^^ 36% $ 6,132 LARGE CAP FUND Year Ended July 31, 2003...... 9.63% (0.66)% 2.01% 2.14% 7% $23,334 Year Ended July 31, 2002...... (23.31)% (0.80)% 2.01% 2.12% 11% $21,739 Year Ended July 31, 2001+..... (12.40)% (0.91)% 2.00% 2.11% 10% $28,118 Period Ended July 31, 2000(b). (0.04)%^ (0.93)%^^ 2.00%^^ 2.07%^^ 10% $24,655 Year Ended December 31, 1999+........................ 17.78% (0.79)% 1.98% 2.00% 15% $18,584 Period Ended December 31, 1998(c)...................... 6.02%^ 0.23%^^ 1.10%^^ 2.11%^^ 3% $ 100
+ Net investment income (loss) is based on average shares outstanding during the period. * Portfolio turnover is calculated on the basis of the fund as a whole without distinguishing between the classes of shares issued. ^ Not annualized. ^^Annualized. (a)For the period from September 2, 1998 (commencement of operations) through July 31, 1999. (b)For the period from January 1, 2000 through July 31, 2000. In conjunction with the reorganization of the AmSouth Funds, the Fund changed its fiscal year end to July 31. (c)For the period from December 15, 1998 (commencement of operations) through December 31, 1998. See notes to financial statements. 124 AMSOUTH FUNDS Financial Highlights B SHARES Selected data for a share outstanding throughout the period indicated.
Investment Activities Less Dividends from -------------------------------------- -------------------------------- Net Realized and Unrealized Gains (Losses) Net Asset Net from Investments, Net Realized Net Asset Value, Investment Futures, and Total from Net Gains from Value, Beginning Income Foreign Investment Investment Investment Total End of of Period (Loss) Currencies Activities Income Transactions Dividends Period --------- ---------- ----------------- ---------- ---------- ------------ --------- --------- CAPITAL GROWTH FUND Year Ended July 31, 2003....... $ 7.56 (0.10) 0.79 0.69 -- -- -- $ 8.25 Year Ended July 31, 2002....... $10.39 (0.27) (2.56) (2.83) -- -- -- $ 7.56 Year Ended July 31, 2001+...... $14.46 (0.17) (2.74) (2.91) -- (1.16) (1.16) $10.39 Period Ended July 31, 2000(a).. $13.93 (0.09) 0.62 0.53 -- -- -- $14.46 Year Ended December 31, 1999+.. $13.92 (0.14) 2.91 2.77 -- (2.76) (2.76) $13.93 Period Ended December 31, 1998(b)....................... $13.10 (0.05) 3.35 3.30 -- (2.48) (2.48) $13.92 MID CAP FUND Year Ended July 31, 2003....... $ 9.13 (0.07) 1.01 0.94 -- -- -- $10.07 Year Ended July 31, 2002....... $11.83 (0.25) (2.45) (2.70) -- -- -- $ 9.13 Year Ended July 31, 2001+...... $16.52 (0.27) (4.42) (4.69) -- -- -- $11.83 Period Ended July 31, 2000(a)+. $17.28 (0.20) (0.56) (0.76) -- -- -- $16.52 Period Ended December 31, 1999(c)+...................... $10.00 (0.19) 7.47 7.28 -- -- -- $17.28 SMALL CAP FUND Year Ended July 31, 2003....... $ 6.89 (0.12) 0.15 0.03 -- -- -- $ 6.92 Year Ended July 31, 2002....... $ 9.85 (0.17) (2.79) (2.96) -- -- -- $ 6.89 Year Ended July 31, 2001+...... $12.31 (0.22) (1.03) (1.25) -- (1.21) (1.21) $ 9.85 Year Ended July 31, 2000....... $ 8.31 (0.14) 4.14 4.00 -- -- -- $12.31 Year Ended July 31, 1999....... $ 9.11 (0.14) (0.66) (0.80) -- -- -- $ 8.31 INTERNATIONAL EQUITY FUND Year Ended July 31, 2003....... $ 7.64 -- 0.85 0.85 -- -- -- $ 8.49 Year Ended July 31, 2002....... $ 9.35 (0.03) (1.68) (1.71) -- -- -- $ 7.64 Year Ended July 31, 2001+...... $12.25 (0.05) (2.49) (2.54) -- (0.36) (0.36) $ 9.35 Period Ended July 31, 2000(a)+. $13.21 -- (0.96) (0.96) -- -- -- $12.25 Period Ended December 31, 1999(d)....................... $10.66 (0.02) 2.69 2.67 (0.12) -- (0.12) $13.21
Ratios (to average net assets)/Supplemental Data ------------------------------------------------------------ Total Return Net Assets, (Excluding Net Expenses (before Portfolio End of Redemption Investment Net Reductions/ Turnover Period Charge) Income Expenses Reimbursements) Rate* (000's) ---------- ---------- -------- ---------------- --------- ----------- CAPITAL GROWTH FUND Year Ended July 31, 2003....... 9.13% (1.21)% 2.06% 2.13% 151% $ 8,571 Year Ended July 31, 2002....... (27.24)% (3.86)% 2.04% 2.12% 115% $ 8,746 Year Ended July 31, 2001+...... (21.77)% (1.35)% 1.96% 2.11% 100% $ 8,967 Period Ended July 31, 2000(a).. 3.80%^ (1.11)%^^ 1.96%^^ 2.07%^^ 91% $ 8,939 Year Ended December 31, 1999+.. 21.11% (0.93)% 1.92% 1.93% 178% $ 7,704 Period Ended December 31, 1998(b)....................... 26.86%^ (0.95)%^^ 2.04%^^ (e)^^ 152% $ 2,854 MID CAP FUND Year Ended July 31, 2003....... 10.30% (0.68)% 1.90% 2.40% 59% $ 6,525 Year Ended July 31, 2002....... (22.82)% (2.07)% 2.41% 2.58% 221% $ 7,066 Year Ended July 31, 2001+...... (28.29)% (1.91)% 2.32% 2.41% 120% $11,323 Period Ended July 31, 2000(a)+. (4.40)%^ (2.00)%^^ 2.33%^^ 2.37%^^ 39% $12,912 Period Ended December 31, 1999(c)+...................... 72.80%^ (2.17)%^^ 2.86%^^ 2.86%^^ 20% $ 2,177 SMALL CAP FUND Year Ended July 31, 2003....... 0.44% (2.01)% 2.35% 2.53% 221% $ 1,987 Year Ended July 31, 2002....... (30.05)% (2.01)% 2.36% 2.52% 227% $ 2,014 Year Ended July 31, 2001+...... (11.03)% (1.97)% 2.36% 2.52% 220% $ 2,975 Year Ended July 31, 2000....... 48.13% (1.99)% 2.39% 2.59% 318% $ 2,619 Year Ended July 31, 1999....... (8.78)% (1.83)% 2.41% 3.42% 208% $ 929 INTERNATIONAL EQUITY FUND Year Ended July 31, 2003....... 11.13% 0.75% 2.11% 2.61% 18% $ 810 Year Ended July 31, 2002....... (18.29)% (0.39)% 2.36% 2.64% 160% $ 471 Year Ended July 31, 2001+...... (21.25)% (0.44)% 2.38% 2.65% 45% $ 516 Period Ended July 31, 2000(a)+. (7.19)%^ (0.04)%^^ 2.47%^^ 2.72%^^ 32% $ 595 Period Ended December 31, 1999(d)....................... 25.98%^ (0.54)%^^ 2.45%^^ 2.73%^^ 40% $ 228
+ Net investment income (loss) is based on average shares outstanding during the period. * Portfolio turnover is calculated on the basis of the fund as a whole without distinguishing between the classes of shares issued. ^ Not annualized. ^^ Annualized. (a)For the period from January 1, 2000 through July 31, 2000. In conjunction with the reorganization of the AmSouth Funds, the Fund changed its fiscal year end to July 31. (b)For the period from February 5, 1998 (commencement of operations) through December 31, 1998. (c)For the period from May 4, 1999 (commencement of operations) through December 31, 1999. (d)For the period from February 2, 1999 (commencement of operations) through December 31, 1999. (e)There was no fee reduction in this period. See notes to financial statements. 125 AMSOUTH FUNDS Financial Highlights B SHARES Selected data for a share outstanding throughout the period indicated.
Investment Activities Less Dividends from -------------------------------------- -------------------------------- Net Asset Net Net Realized Net Realized Net Asset Value, Investment and Unrealized Total from Net Gains from Value, Beginning Income Gains (Losses) Investment Investment Investment Total End of Period (Loss) from Investments* Activities Income Transactions Dividends of Period --------- ---------- ----------------- ---------- ---------- ------------ --------- --------- BALANCED FUND Year Ended July 31, 2003..... $10.86 0.14 0.66 0.80 (0.18) (0.14) (0.32) $11.34 Year Ended July 31, 2002..... $12.42 0.22 (1.19) (0.97) (0.23) (0.36) (0.59) $10.86 Year Ended July 31, 2001+.... $12.45 0.28 1.26 1.54 (0.30) (1.27) (1.57) $12.42 Year Ended July 31, 2000..... $14.90 0.34 (0.64) (0.30) (0.37) (1.78) (2.15) $12.45 Year Ended July 31, 1999..... $15.16 0.29 0.95 1.24 (0.30) (1.20) (1.50) $14.90 STRATEGIC PORTFOLIOS: AGGRESSIVE GROWTH PORTFOLIO Year Ended July 31, 2003..... $ 6.87 (0.03) 0.65 0.62 -- -- -- $ 7.49 Year Ended July 31, 2002..... $ 9.77 (0.07) (2.19) (2.26) -- (0.64) (0.64) $ 6.87 Year Ended July 31, 2001+.... $11.42 0.06 (0.44) (0.38) (0.11) (1.16) (1.27) $ 9.77 Period Ended July 31, 2000(a) $11.47 (0.03) (0.02) (0.05) -- -- -- $11.42 Period Ended December 31, 1999(b).................... $10.03 0.07 1.50 1.57 (0.09) (0.04) (0.13) $11.47 STRATEGIC PORTFOLIOS: GROWTH PORTFOLIO Year Ended July 31, 2003..... $ 7.55 0.01 0.62 0.63 (0.02) -- (0.02) $ 8.16 Year Ended July 31, 2002..... $ 9.34 0.02 (1.48) (1.46) (0.03) (0.30) (0.33) $ 7.55 Year Ended July 31, 2001+.... $10.44 0.15 (0.41) (0.26) (0.17) (0.67) (0.84) $ 9.34 Period Ended July 31, 2000(a) $10.57 0.03 (0.12) (0.09) (0.04) -- (0.04) $10.44 Period Ended December 31, 1999(c).................... $ 9.84 0.12 0.81 0.93 (0.12) (0.08) (0.20) $10.57 STRATEGIC PORTFOLIOS: GROWTH AND INCOME PORTFOLIO Year Ended July 31, 2003..... $ 8.32 0.06 0.56 0.62 (0.08) -- (0.08) $ 8.86 Year Ended July 31, 2002..... $ 9.77 0.12 (1.16) (1.04) (0.13) (0.28) (0.41) $ 8.32 Year Ended July 31, 2001+.... $10.53 0.24 (0.12) 0.12 (0.25) (0.63) (0.88) $ 9.77 Period Ended July 31, 2000(a) $10.50 0.10 0.02 0.12 (0.09) -- (0.09) $10.53 Period Ended December 31, 1999(b).................... $10.00 0.08 0.53 0.61 (0.08) (0.03) (0.11) $10.50 STRATEGIC PORTFOLIOS: MODERATE GROWTH AND INCOME PORTFOLIO Year Ended July 31, 2003..... $ 8.56 0.09 0.50 0.59 (0.11) (0.03) (0.14) $ 9.01 Year Ended July 31, 2002..... $ 9.71 0.17 (0.95) (0.78) (0.17) (0.20) (0.37) $ 8.56 Year Ended July 31, 2001+.... $10.04 0.25 0.15 0.40 (0.28) (0.45) (0.73) $ 9.71 Period Ended July 31, 2000(a) $ 9.96 0.13 0.07 0.20 (0.12) -- (0.12) $10.04 Period Ended December 31, 1999(d).................... $10.00 0.13 0.02 0.15 (0.13) (0.06) (0.19) $ 9.96
Ratios (to average net assets)/Supplemental Data -------------------------------------------------------------- Total Return (Excluding Net Expenses (before Portfolio Net Assets, Redemption Investment Net Reductions/ Turnover End of Period Charge) Income Expenses Reimbursements) Rate** (000's) ---------- ---------- -------- ---------------- --------- ------------- BALANCED FUND Year Ended July 31, 2003..... 7.55% 1.27% 2.09% 2.17% 86% $20,004 Year Ended July 31, 2002..... (8.17)% 1.81% 2.09% 2.16% 34% $16,742 Year Ended July 31, 2001+.... 13.03% 2.20% 2.06% 2.12% 14% $ 9,004 Year Ended July 31, 2000..... (1.80)% 2.54% 2.10% 2.12% 16% $ 7,072 Year Ended July 31, 1999..... 8.66% 1.93% 2.09% 2.10% 23% $10,131 STRATEGIC PORTFOLIOS: AGGRESSIVE GROWTH PORTFOLIO Year Ended July 31, 2003..... 9.02% (0.78)% 1.40% 1.83% 100% $ 2,014 Year Ended July 31, 2002..... (24.43)% (1.04)% 1.46% 1.87% 50% $ 761 Year Ended July 31, 2001+.... (4.06)% 0.58% 1.52% 1.93% 36% $ 386 Period Ended July 31, 2000(a) (0.43)%^ (0.44)%^^ 1.56%^^ 1.94%^^ 22% $ 390 Period Ended December 31, 1999(b).................... 15.70%^ 0.92%^^ 1.52%^^ 7.86%^^ 95% $ 456 STRATEGIC PORTFOLIOS: GROWTH PORTFOLIO Year Ended July 31, 2003..... 8.39% 0.19% 1.36% 1.81% 128% $ 4,491 Year Ended July 31, 2002..... (16.13)% 0.22% 1.45% 1.89% 63% $ 1,886 Year Ended July 31, 2001+.... (2.82)% 1.53% 1.53% 1.97% 38% $ 1,710 Period Ended July 31, 2000(a) (0.84)%^ 0.46%^^ 1.56%^^ 1.97%^^ 97% $ 1,241 Period Ended December 31, 1999(c).................... 9.48%^ 2.14%^^ 1.55%^^ 6.75%^^ 76% $ 998 STRATEGIC PORTFOLIOS: GROWTH AND INCOME PORTFOLIO Year Ended July 31, 2003..... 7.45% 0.76% 1.37% 1.61% 135% $ 3,839 Year Ended July 31, 2002..... (10.98)% 1.31% 1.35% 1.58% 69% $ 1,607 Year Ended July 31, 2001+.... 1.09% 2.40% 1.37% 1.60% 51% $ 1,656 Period Ended July 31, 2000(a) 1.13%^ 1.58%^^ 1.40%^^ 1.57%^^ 21% $ 1,613 Period Ended December 31, 1999(b).................... 6.10%^ 1.74%^^ 1.52%^^ 4.26%^^ 57% $ 1,725 STRATEGIC PORTFOLIOS: MODERATE GROWTH AND INCOME PORTFOLIO Year Ended July 31, 2003..... 7.02% 1.12% 1.40% 1.82% 136% $ 2,812 Year Ended July 31, 2002..... (8.38)% 1.74% 1.39% 1.81% 65% $ 970 Year Ended July 31, 2001+.... 4.09% 2.59% 1.51% 1.92% 62% $ 1,231 Period Ended July 31, 2000(a) 2.00%^ 2.19%^^ 1.55%^^ 1.88%^^ 21% $ 832 Period Ended December 31, 1999(d).................... 1.50%^ 2.80%^^ 1.54%^^ 6.90%^^ 124% $ 941
+ Net investment income (loss) is based on average shares outstanding during the period. * Represents investments in affiliates for the Strategic Portfolios. ** Portfolio turnover is calculated on the basis of the fund as a whole without distinguishing between the classes of shares issued. ^ Not annualized. ^^ Annualized. (a)For the period from January 1, 2000 through July 31, 2000. In conjunction with the reorganization of the AmSouth Funds, the Fund changed its fiscal year end to July 31. (b)For the period from January 27, 1999 (commencement of operations) through December 31, 1999. (c)For the period from February 15, 1999 (commencement of operations) through December 31, 1999. (d)For the period from January 28, 1999 (commencement of operations) through December 31, 1999. See notes to financial statements. 126 AMSOUTH FUNDS Financial Highlights B SHARES Selected data for a share outstanding throughout the period indicated.
Investment Activities Less Dividends from ----------------------------------- -------------------------------- Net Realized Net Asset and Unrealized Net Realized Net Asset Value, Net Gains (Losses) Total from Net Gains from Value, Beginning Investment from Investment Investment Investment Total End of of Period Income Investments Activities Income Transactions Dividends Period --------- ---------- -------------- ---------- ---------- ------------ --------- --------- GOVERNMENT INCOME FUND Year Ended July 31, 2003...... $10.26 0.33 (0.06) 0.27 (0.34) (0.15) (0.49) $10.04 Year Ended July 31, 2002...... $10.10 0.42 0.19 0.61 (0.45) -- (0.45) $10.26 Year Ended July 31, 2001+..... $ 9.61 0.47 0.51 0.98 (0.49) -- (0.49) $10.10 Period Ended July 31, 2000(a). $ 9.48 0.18 0.10 0.28 (0.15) -- (0.15) $ 9.61 LIMITED TERM BOND FUND Year Ended July 31, 2003...... $10.69 0.28 0.01 0.29 (0.34) -- (0.34) $10.64 Year Ended July 31, 2002...... $10.54 0.42 0.17 0.59 (0.44) -- (0.44) $10.69 Year Ended July 31, 2001+..... $10.13 0.49 0.42 0.91 (0.50) -- (0.50) $10.54 Year Ended July 31, 2000...... $10.27 0.48 (0.10) 0.38 (0.52) -- (0.52) $10.13 Period Ended July 31, 1999(b). $10.58 0.27 (0.30) (0.03) (0.28) -- (0.28) $10.27 BOND FUND Year Ended July 31, 2003...... $11.40 0.37 0.11 0.48 (0.43) (0.15) (0.58) $11.30 Year Ended July 31, 2002...... $11.10 0.43 0.37 0.80 (0.47) (0.03) (0.50) $11.40 Year Ended July 31, 2001+..... $10.50 0.50 0.61 1.11 (0.51) -- (0.51) $11.10 Year Ended July 31, 2000...... $10.60 0.49 (0.05) 0.44 (0.52) (0.02) (0.54) $10.50 Year Ended July 31, 1999...... $11.04 0.50 (0.31) 0.19 (0.50) (0.13) (0.63) $10.60
Ratios (to average net assets)/Supplemental Data ------------------------------------------------------- Total Net Return Assets, (Excluding Net Expenses (before Portfolio End of Redemption Investment Net Reductions/ Turnover Period Charge) Income Expenses Reimbursements) Rate* (000's) ---------- ---------- -------- ---------------- --------- ------- GOVERNMENT INCOME FUND Year Ended July 31, 2003...... 2.61% 3.08% 1.76% 1.98% 43% $10,228 Year Ended July 31, 2002...... 6.18% 4.00% 1.75% 1.96% 18% $ 3,542 Year Ended July 31, 2001+..... 10.36% 4.65% 1.74% 1.95% 25% $ 1,635 Period Ended July 31, 2000(a). 2.98%^ 4.77%^^ 1.75%^^ 1.98%^^ 42% $ 520 LIMITED TERM BOND FUND Year Ended July 31, 2003...... 2.76% 2.52% 1.73% 1.97% 32% $23,190 Year Ended July 31, 2002...... 5.69% 3.78% 1.75% 1.96% 29% $10,307 Year Ended July 31, 2001+..... 9.20% 4.66% 1.75% 1.97% 44% $ 2,614 Year Ended July 31, 2000...... 3.85% 4.79% 1.76% 1.99% 34% $ 1,815 Period Ended July 31, 1999(b). (0.33%)^ 4.61%^^ 1.69%^^ 1.96%^^ 39% $ 1,599 BOND FUND Year Ended July 31, 2003...... 4.27% 3.24% 1.74% 1.97% 33% $10,168 Year Ended July 31, 2002...... 7.43% 3.90% 1.74% 1.95% 35% $ 9,796 Year Ended July 31, 2001+..... 10.77% 4.55% 1.73% 1.95% 24% $ 7,342 Year Ended July 31, 2000...... 4.30% 4.72% 1.74% 1.96% 27% $ 3,636 Year Ended July 31, 1999...... 1.58% 4.63% 1.71% 1.95% 18% $ 2,521
+ Net investment income (loss) is based on average shares outstanding during the period. * Portfolio turnover is calculated on the basis of the fund as a whole without distinguishing between the classes of shares issued. ^ Not annualized. ^^ Annualized. (a)For the period from March 13, 2000 (commencement of operations) through July 31, 2000. (b)For the period from January 21, 1999 (commencement of operations) through July 31, 1999. See notes to financial statements. 127 AMSOUTH FUNDS Financial Highlights B SHARES Selected data for a share outstanding throughout the period indicated.
Investment Activities Less Dividends from ------------------------------------- -------------------------------- Net Asset Net Realized and Net Realized Net Asset Value, Net Unrealized Total from Net Gains from Value, Beginning Investment Gains (Losses) Investment Investment Investment Total End of of Period Income from Investments Activities Income Transactions Dividends Period --------- ---------- ---------------- ---------- ---------- ------------ --------- --------- MUNICIPAL BOND FUND Year Ended July 31, 2003...... $10.36 0.27 (0.04) 0.23 (0.25) (0.03) (0.28) $10.31 Year Ended July 31, 2002...... $10.17 0.30 0.22 0.52 (0.32) (0.01) (0.33) $10.36 Year Ended July 31, 2001+..... $ 9.75 0.32 0.41 0.73 (0.31) -- (0.31) $10.17 Year Ended July 31, 2000...... $ 9.87 0.31 (0.05) 0.26 (0.33) (0.05) (0.38) $ 9.75 Period Ended July 31, 1999(a). $10.28 0.14 (0.41) (0.27) (0.14) -- (0.14) $ 9.87 FLORIDA TAX-EXEMPT FUND Year Ended July 31, 2003...... $10.76 0.29 (0.08) 0.21 (0.29) -- (0.29) $10.68 Year Ended July 31, 2002...... $10.49 0.29 0.28 0.57 (0.30) -- (0.30) $10.76 Year Ended July 31, 2001+..... $10.15 0.32 0.34 0.66 (0.32) -- (0.32) $10.49 Year Ended July 31, 2000...... $10.20 0.32 (0.01) 0.31 (0.33) (0.03) (0.36) $10.15 Period Ended July 31, 1999(b). $10.52 0.12 (0.30) (0.18) (0.14) -- (0.14) $10.20 TENNESSEE TAX-EXEMPT FUND Year Ended July 31, 2003...... $10.38 0.20 (0.04) 0.16 (0.20) -- (0.20) $10.34 Year Ended July 31, 2002...... $10.12 0.24 0.26 0.50 (0.24) -- (0.24) $10.38 Year Ended July 31, 2001+..... $ 9.76 0.29 0.36 0.65 (0.29) -- (0.29) $10.12 Period Ended July 2000(c)..... $ 9.57 0.17 0.18 0.35 (0.16) -- (0.16) $ 9.76 Year Ended December 31, 1999.. $10.21 0.27 (0.64) (0.37) (0.27) -- (0.27) $ 9.57 Period Ended December 31, 1998(d)...................... $10.22 0.26 0.06 0.32 (0.26) (0.07) (0.33) $10.21
Ratios (to average net assets)/Supplemental Data ------------------------------------------------------------- Total Return (Excluding Net Expenses (before Portfolio Net Assets, Redemption Investment Net Reductions/ Turnover End of Period Charge) Income Expenses Reimbursements) Rate* (000's) ---------- ---------- -------- ---------------- --------- ------------- MUNICIPAL BOND FUND Year Ended July 31, 2003...... 2.19% 2.61% 1.64% 1.96% 7% $4,496 Year Ended July 31, 2002...... 5.20% 2.95% 1.64% 1.95% 10% $3,844 Year Ended July 31, 2001+..... 7.60% 3.12% 1.64% 1.95% 5% $1,777 Year Ended July 31, 2000...... 2.75% 3.30% 1.64% 1.96% 9% $ 889 Period Ended July 31, 1999(a). (2.60)%^ 3.17%^^ 1.60%^^ 1.87%^^ 21% $ 16 FLORIDA TAX-EXEMPT FUND Year Ended July 31, 2003...... 1.91% 2.61% 1.59% 2.00% 6% $3,807 Year Ended July 31, 2002...... 5.56% 2.90% 1.62% 2.01% 13% $2,647 Year Ended July 31, 2001+..... 6.61% 3.03% 1.64% 2.04% 7% $1,385 Year Ended July 31, 2000...... 3.14% 3.22% 1.62% 2.05% 11% $ 729 Period Ended July 31, 1999(b). 1.77%^ 3.06%^^ 1.49%^^ 2.00%^^ 34% $ 569 TENNESSEE TAX-EXEMPT FUND Year Ended July 31, 2003...... 1.56% 1.95% 1.82% 2.09% 21% $2,936 Year Ended July 31, 2002...... 4.98% 2.29% 1.82% 2.07% 60% $1,839 Year Ended July 31, 2001+..... 6.75% 2.85% 1.84% 2.08% 123% $1,432 Period Ended July 2000(c)..... 3.74%^ 3.07%^^ 1.83%^^ 1.96%^^ 23% $1,054 Year Ended December 31, 1999.. (3.65)% 2.72% 1.84% 1.85% 64% $1,288 Period Ended December 31, 1998(d)...................... 3.17%^ 2.50%^^ 1.95%^^ (e) 155% $1,397
+ Net investment income (loss) is based on average shares outstanding during the period. * Portfolio turnover is calculated on the basis of the fund as a whole without distinguishing between the classes of shares issued. ^ Not annualized. ^^ Annualized. (a)For the period from February 3, 1999 (commencement of operations) through July 31, 1999. (b)For the period from March 16, 1999 (commencement of operations) through July 31, 1999. (c)For the period from January 1, 2000 through July 31, 2000. In conjunction with the reorganization of the AmSouth Funds, the Fund changed its fiscal year end to July 31. (d)For the period from February 24, 1998 (commencement of operations) through December 31, 1998. (e)There were no fee reductions in this period. See notes to financial statements. 128 AMSOUTH FUNDS Financial Highlights B SHARES+ Selected data for a share outstanding throughout the period indicated.
Less Net Asset Dividends Net Asset Value, Net from Net Value, Beginning Investment Investment End of Total of Period Income Income Period Return --------- ---------- ---------- --------- ------ PRIME MONEY MARKET FUND Year Ended July 31, 2003....................... $1.000 0.003 (0.003) $1.000 0.26% Year Ended July 31, 2002....................... $1.000 0.008 (0.008) $1.000 0.77% Year Ended July 31, 2001....................... $1.000 0.042 (0.042) $1.000 4.25% Year Ended July 31, 2000....................... $1.000 0.042 (0.042) $1.000 4.31% Year Ended July 31, 1999....................... $1.000 0.035 (0.035) $1.000 3.55% INSTITUTIONAL PRIME OBLIGATIONS MONEY MARKET FUND Year Ended July 31, 2003....................... $1.000 0.007 (0.007) $1.000 0.68% Year Ended July 31, 2002....................... $1.000 0.016 (0.016) $1.000 1.58% Year Ended July 31, 2001....................... $1.000 0.049 (0.049) $1.000 5.04% Year Ended July 31, 2000....................... $1.000 0.052 (0.052) $1.000 5.29% Period Ended July 31, 1999(a).................. $1.000 0.018 (0.018) $1.000 1.84%^
Ratios (to average net assets)/Supplemental Data ------------------------------------------------- Net Assets, Net Expenses (before End of Investment Net Reductions/ Period Income Expenses Reimbursements) (000's) ---------- -------- ---------------- ----------- PRIME MONEY MARKET FUND Year Ended July 31, 2003....................... 0.26% 1.18% 1.72% $ 3,567 Year Ended July 31, 2002....................... 0.71% 1.54% 1.69% $ 3,891 Year Ended July 31, 2001....................... 3.75% 1.52% 1.69% $ 1,908 Year Ended July 31, 2000....................... 4.35% 1.61% 1.69% $ 727 Year Ended July 31, 1999....................... 4.51% 1.69% 1.70% $ 224 INSTITUTIONAL PRIME OBLIGATIONS MONEY MARKET FUND Year Ended July 31, 2003....................... 0.77% 0.76% 0.91% $ 91,824 Year Ended July 31, 2002....................... 1.50% 0.75% 0.89% $210,031 Year Ended July 31, 2001....................... 4.81% 0.75% 0.90% $169,676 Year Ended July 31, 2000....................... 5.43% 0.71% 0.91% $114,401 Period Ended July 31, 1999(a).................. 4.22%^^ 0.74%^^ 0.97%^^ $ 13,575
+ Represents Class 3 Shares for Institutional Prime Obligations Money Market Fund. ^ Not annualized. ^^ Annualized. (a)For the period from February 22, 1999 (commencement of operations) through July 31, 1999. See notes to financial statements. 129 AMSOUTH FUNDS Financial Highlights I SHARES Selected data for a share outstanding throughout the period indicated.
Investment Activities Less Dividends from ------------------------------------- -------------------------------- Net Realized Net Asset and Unrealized Net Realized Net Asset Value, Net Gains (Losses) Total from Net Gains from Value, Beginning Investment from Investments Investment Investment Investment Total End of Period Income and Futures Activities Income Transactions Dividends of Period --------- ---------- ---------------- ---------- ---------- ------------ --------- --------- VALUE FUND Year Ended July 31, 2003...... $12.74 0.16 0.81 0.97 (0.15) (0.52) (0.67) $13.04 Year Ended July 31, 2002...... $20.34 0.11 (5.99) (5.88) (0.11) (1.61) (1.72) $12.74 Year Ended July 31, 2001+..... $19.53 0.15 3.59 3.74 (0.16) (2.77) (2.93) $20.34 Year Ended July 31, 2000...... $25.27 0.28 (2.24) (1.96) (0.28) (3.50) (3.78) $19.53 Year Ended July 31, 1999...... $24.57 0.26 3.16 3.42 (0.25) (2.47) (2.72) $25.27 SELECT EQUITY FUND Year Ended July 31, 2003...... $11.01 0.07 0.91 0.98 (0.06) -- (0.06) $11.93 Year Ended July 31, 2002...... $11.25 0.04 (0.25) (0.21) (0.03) -- (0.03) $11.01 Year Ended July 31, 2001+..... $ 8.73 0.02 2.52 2.54 (0.02) -- (0.02) $11.25 Year Ended July 31, 2000+..... $11.89 0.09 (2.36) (2.27) (0.08) (0.81) (0.89) $ 8.73 Period Ended July 31, 1999(a). $11.52 0.04 0.38 0.42 (0.04) (0.01) (0.05) $11.89 ENHANCED MARKET FUND Year Ended July 31, 2003...... $ 9.17 0.08 0.71 0.79 (0.08) -- (0.08) $ 9.88 Year Ended July 31, 2002...... $12.28 0.06 (2.97) (2.91) (0.04) (0.16) (0.20) $ 9.17 Year Ended July 31, 2001+..... $14.65 0.06 (2.17) (2.11) (0.04) (0.22) (0.26) $12.28 Year Ended July 31, 2000...... $13.86 0.10 1.23 1.33 (0.09) (0.45) (0.54) $14.65 Period Ended July 31, 1999(b). $12.18 0.07 1.71 1.78 (0.07) (0.03) (0.10) $13.86 LARGE CAP FUND Year Ended July 31, 2003...... $15.49 0.03 1.54 1.57 (0.03) (0.63) (0.66) $16.40 Year Ended July 31, 2002...... $21.25 0.02 (4.58) (4.56) (0.01) (1.19) (1.20) $15.49 Year Ended July 31, 2001+..... $28.14 -- (2.83) (2.83) -- (4.06) (4.06) $21.25 Period Ended July 31, 2000(c). $28.01 -- 0.14 0.14 (0.01) -- (0.01) $28.14 Year Ended December 31, 1999+. $27.54 0.03 5.07 5.10 (0.03) (4.60) (4.63) $28.01 Year Ended December 31, 1998(d)...................... $25.52 -- 2.02 2.02 -- -- -- $27.54
Ratios (to average net assets)/Supplemental Data -------------------------------------------------------------- Net Expenses (before Portfolio Net Assets, Total Investment Net Reductions/ Turnover End of Period Return Income Expenses Reimbursements) Rate* (000's) ------ ---------- -------- ---------------- --------- ------------- VALUE FUND Year Ended July 31, 2003...... 8.21% 1.32% 1.20% 1.29% 117% $390,734 Year Ended July 31, 2002...... (31.09)% 0.64% 1.20% 1.26% 59% $420,054 Year Ended July 31, 2001+..... 21.10% 0.76% 1.19% 1.25% 43% $565,484 Year Ended July 31, 2000...... (8.11)% 1.30% 1.13% 1.15% 17% $560,804 Year Ended July 31, 1999...... 15.43% 1.07% 1.08% 1.09% 18% $960,660 SELECT EQUITY FUND Year Ended July 31, 2003...... 8.96% 0.57% 1.19% 1.39% 8% $ 44,620 Year Ended July 31, 2002...... (1.84)% 0.42% 1.33% 1.63% 38% $ 8,419 Year Ended July 31, 2001+..... 29.12% 0.19% 1.56% 1.97% 19% $ 7,043 Year Ended July 31, 2000+..... (19.72)% 0.88% 1.25% 1.78% 25% $ 5,100 Period Ended July 31, 1999(a). 3.63%^ 0.65%^^ 0.99%^^ 1.58%^^ 10% $ 10,420 ENHANCED MARKET FUND Year Ended July 31, 2003...... 8.71% 0.92% 0.83% 1.00% 27% $ 98,133 Year Ended July 31, 2002...... (24.00)% 0.53% 0.93% 1.10% 34% $ 6,793 Year Ended July 31, 2001+..... (14.53)% 0.43% 0.90% 1.04% 42% $ 15,469 Year Ended July 31, 2000...... 9.73% 0.65% 0.81% 0.98% 30% $ 31,622 Period Ended July 31, 1999(b). 14.71%^ 0.90%^^ 0.74%^^ 1.29%^^ 36% $ 14,273 LARGE CAP FUND Year Ended July 31, 2003...... 10.65% 0.25% 1.11% 1.29% 7% $393,743 Year Ended July 31, 2002...... (22.64)% 0.10% 1.11% 1.27% 11% $393,942 Year Ended July 31, 2001+..... (11.60)% (0.01)% 1.10% 1.26% 10% $521,412 Period Ended July 31, 2000(c). (0.50)%^ 0.00%^^ 1.07%^^ 1.22%^^ 10% $694,107 Year Ended December 31, 1999+. 18.84% 0.11% 1.04% 1.14% 15% $706,313 Year Ended December 31, 1998(d)...................... 7.92%^ 0.20%^^ 1.04% ^^ 1.09%^^ 3% $786,462
+ Net investment income (loss) is based on average shares outstanding during the period. * Portfolio turnover is calculated on the basis of the fund as a whole without distinguishing between the classes of shares issued. ^ Not annualized. ^^ Annualized. (a)For the period from December 3, 1998 (commencement of operations) through July 31, 1999. (b)For the period from December 11, 1998 (commencement of operations) through July 31, 1999. (c)For the period from January 1, 2000 through July 31, 2000. In conjunction with the reorganization of the AmSouth Funds, the Fund changed its fiscal year end to July 31. (d)For the period from December 14, 1998 (commencement of operations) through December 31, 1998. See notes to financial statements. 130 AMSOUTH FUNDS Financial Highlights I SHARES Selected data for a share outstanding throughout the period indicated.
Investment Activities Less Dividends from -------------------------------------- -------------------------------- ---------- Net Realized and Unrealized Gains (Losses) Net Asset Net from Investments, Net Realized Value, Investment Futures, and Total from Net Gains from Beginning Income Foreign Investment Investment Investment Total Redemption of Period (Loss) Currencies Activities Income Transactions Dividends Fees --------- ---------- ----------------- ---------- ---------- ------------ --------- ---------- CAPITAL GROWTH FUND Year Ended July 31, 2003.. $ 7.94 (0.03) 0.83 0.80 -- -- -- -- Year Ended July 31, 2002.. $10.82 (0.04) (2.84) (2.88) -- -- -- -- Year Ended July 31, 2001+. $14.89 (0.06) (2.85) (2.91) -- (1.16) (1.16) -- Period Ended July 31, 2000(a).................. $14.27 (0.02) 0.64 0.62 -- -- -- -- Year Ended December 31, 1999+.................... $14.09 (0.01) 2.95 2.94 -- (2.76) (2.76) -- Year Ended December 31, 1998..................... $12.69 0.01 3.88 3.89 (0.01) (2.48) (2.49) -- MID CAP FUND Year Ended July 31, 2003.. $ 9.40 0.02 1.04 1.06 (0.02) -- (0.02) -- Year Ended July 31, 2002.. $12.06 (0.13) (2.53) (2.66) -- -- -- -- Year Ended July 31, 2001+. $16.70 (0.15) (4.49) (4.64) -- -- -- -- Period Ended July 31, 2000(a)+................. $17.37 (0.11) (0.56) (0.67) -- -- -- -- Period Ended December 31, 1999(b)+................. $10.00 (0.12) 7.49 7.37 -- -- -- -- SMALL CAP FUND Year Ended July 31, 2003.. $ 7.21 (0.07) 0.17 0.10 -- -- -- -- Year Ended July 31, 2002.. $10.22 (0.08) (2.93) (3.01) -- -- -- -- Year Ended July 31, 2001+. $12.61 (0.12) (1.06) (1.18) -- (1.21) (1.21) -- Year Ended July 31, 2000.. $ 8.44 (0.07) 4.24 4.17 -- -- -- -- Year Ended July 31, 1999.. $ 9.15 (0.03) (0.68) (0.71) -- -- -- -- INTERNATIONAL EQUITY FUND Year Ended July 31, 2003.. $ 7.83 0.02 0.89 0.91 (0.02) -- (0.02) 0.01 Year Ended July 31, 2002.. $ 9.50 0.04 (1.70) (1.66) (0.01) -- (0.01) -- Year Ended July 31, 2001+. $12.37 0.06 (2.53) (2.47) (0.04) (0.36) (0.40) -- Period Ended July 31, 2000(a)+................. $13.27 0.06 (0.96) (0.90) -- -- -- -- Year Ended December 31, 1999..................... $10.58 0.08 2.75 2.83 (0.14) -- (0.14) -- Period Ended December 31, 1998(c).................. $10.05 (0.01) 0.54 0.53 -- -- -- --
Ratios (to average net assets)/Supplemental Data --------------------------------------------------------- Net Net Asset Assets, Value, Net Expenses (before Portfolio End of End of Total Investment Net Reductions/ Turnover Period Period Return Income Expenses Reimbursements) Rate* (000's) ------ ------ ---------- -------- ---------------- --------- -------- CAPITAL GROWTH FUND Year Ended July 31, 2003.. $ 8.74 10.08% (0.31)% 1.16% 1.28% 151% $224,798 Year Ended July 31, 2002.. $ 7.94 (26.62)% (0.48)% 1.15% 1.27% 115% $242,193 Year Ended July 31, 2001+. $10.82 (21.11)% (0.50)% 1.11% 1.26% 100% $299,177 Period Ended July 31, 2000(a).................. $14.89 4.36%^ (0.26)%^^ 1.11%^^ 1.22%^^ 91% $298,771 Year Ended December 31, 1999+.................... $14.27 22.09% (0.09)% 1.07% 1.08% 178% $241,810 Year Ended December 31, 1998..................... $14.09 32.40% 0.07% 1.02% 1.03% 152% $173,542 MID CAP FUND Year Ended July 31, 2003.. $10.44 11.26% 0.23% 0.99% 1.54% 59% $117,498 Year Ended July 31, 2002.. $ 9.40 (22.06)% (1.16)% 1.51% 1.73% 221% $ 30,453 Year Ended July 31, 2001+. $12.06 (27.78)% (1.03)% 1.42% 1.55% 120% $ 41,611 Period Ended July 31, 2000(a)+................. $16.70 (3.86)%^ (1.08)%^^ 1.46%^^ 1.53%^^ 39% $ 63,696 Period Ended December 31, 1999(b)+................. $17.37 73.70%^ (1.47)%^^ 2.18%^^ 2.18%^^ 20% $ 37,186 SMALL CAP FUND Year Ended July 31, 2003.. $ 7.31 1.39% (1.11)% 1.45% 1.68% 221% $174,741 Year Ended July 31, 2002.. $ 7.21 (29.45)% (1.11)% 1.46% 1.67% 227% $139,099 Year Ended July 31, 2001+. $10.22 (10.16)% (1.07)% 1.46% 1.67% 220% $172,735 Year Ended July 31, 2000.. $12.61 49.41% (1.01)% 1.42% 1.70% 318% $162,215 Year Ended July 31, 1999.. $ 8.44 (7.76)% (0.82)% 1.39% 2.38% 208% $ 21,777 INTERNATIONAL EQUITY FUND Year Ended July 31, 2003.. $ 8.73 11.73% 1.52% 1.21% 1.76% 18% $254,736 Year Ended July 31, 2002.. $ 7.83 (17.49)% 0.56% 1.45% 1.79% 160% $185,374 Year Ended July 31, 2001+. $ 9.50 (20.50)% 0.59% 1.47% 1.79% 45% $145,744 Period Ended July 31, 2000(a)+................. $12.37 (6.71)%^ 0.83%^^ 1.59%^^ 1.88%^^ 32% $105,034 Year Ended December 31, 1999..................... $13.27 26.72% 0.80% 1.56% 1.84% 40% $ 46,104 Period Ended December 31, 1998(c).................. $10.58 5.27%^ (1.47)%^^ 1.61%^^ 1.89%^^ 62% $ 27,977
+ Net investment income (loss) is based on average shares outstanding during the period. * Portfolio turnover is calculated on the basis of the fund as a whole without distinguishing between the classes of shares issued. ^ Not annualized. ^^ Annualized. (a)For the period from January 1, 2000 through July 31, 2000. In conjunction with the reorganization of the AmSouth Funds, the Fund changed its fiscal year end to July 31. (b)For the period from May 4, 1999 (commencement of operations) through December 31, 1999. (c)For the period from December 14, 1998 (commencement of operations) through December 31, 1998. See notes to financial statements. 131 AMSOUTH FUNDS Financial Highlights I SHARES Selected data for a share outstanding throughout the period indicated.
Investment Activities Less Dividends from ------------------------------------- -------------------------------- Net Asset Net Net Realized Net Realized Net Asset Value, Investment and Unrealized Total from Net Gains from Value, Beginning Income Gains (Losses) Investment Investment Investment Total End of Period (Loss) from Investments Activities Income Transactions Dividends of Period --------- ---------- ---------------- ---------- ---------- ------------ --------- --------- BALANCED FUND Year Ended July 31, 2003.......... $10.90 0.23 0.66 0.89 (0.27) (0.14) (0.41) $11.38 Year Ended July 31, 2002.......... $12.45 0.32 (1.18) (0.86) (0.33) (0.36) (0.69) $10.90 Year Ended July 31, 2001+......... $12.47 0.40 1.26 1.66 (0.41) (1.27) (1.68) $12.45 Year Ended July 31, 2000.......... $14.93 0.46 (0.64) (0.18) (0.50) (1.78) (2.28) $12.47 Year Ended July 31, 1999.......... $15.18 0.44 0.95 1.39 (0.44) (1.20) (1.64) $14.93 STRATEGIC PORTFOLIOS: AGGRESSIVE GROWTH PORTFOLIO Year Ended July 31, 2003.......... $ 7.03 -- 0.70 0.70 -- -- -- $ 7.73 Year Ended July 31, 2002.......... $ 9.90 (0.02) (2.21) (2.23) -- (0.64) (0.64) $ 7.03 Year Ended July 31, 2001+......... $11.51 0.14 (0.44) (0.30) (0.15) (1.16) (1.31) $ 9.90 Period Ended July 31, 2000(a)..... $11.53 0.02 (0.02) -- (0.02) -- (0.02) $11.51 Period Ended December 31, 1999(b). $10.05 0.12 1.52 1.64 (0.12) (0.04) (0.16) $11.53 STRATEGIC PORTFOLIOS: GROWTH PORTFOLIO Year Ended July 31, 2003.......... $ 7.62 0.07 0.62 0.69 (0.07) -- (0.07) $ 8.24 Year Ended July 31, 2002.......... $ 9.42 0.09 (1.50) (1.41) (0.09) (0.30) (0.39) $ 7.62 Year Ended July 31, 2001+......... $10.51 0.24 (0.42) (0.18) (0.24) (0.67) (0.91) $ 9.42 Period Ended July 31, 2000(a)..... $10.61 0.08 (0.11) (0.03) (0.07) -- (0.07) $10.51 Period Ended December 31, 1999(c). $10.00 0.16 0.69 0.85 (0.16) (0.08) (0.24) $10.61 STRATEGIC PORTFOLIOS: GROWTH AND INCOME PORTFOLIO Year Ended July 31, 2003.......... $ 8.36 0.14 0.55 0.69 (0.14) -- (0.14) $ 8.91 Year Ended July 31, 2002.......... $ 9.80 0.20 (1.16) (0.96) (0.20) (0.28) (0.48) $ 8.36 Year Ended July 31, 2001+......... $10.56 0.32 (0.12) 0.20 (0.33) (0.63) (0.96) $ 9.80 Period Ended July 31, 2000(a)..... $10.51 0.14 0.03 0.17 (0.12) -- (0.12) $10.56 Period Ended December 31, 1999(d). $ 9.85 0.13 0.69 0.82 (0.13) (0.03) (0.16) $10.51 STRATEGIC PORTFOLIOS: MODERATE GROWTH AND INCOME PORTFOLIO Year Ended July 31, 2003.......... $ 8.61 0.17 0.49 0.66 (0.17) (0.03) (0.20) $ 9.07 Year Ended July 31, 2002.......... $ 9.76 0.23 (0.95) (0.72) (0.23) (0.20) (0.43) $ 8.61 Year Ended July 31, 2001+......... $10.08 0.34 0.14 0.48 (0.35) (0.45) (0.80) $ 9.76 Period Ended July 31, 2000(a)..... $ 9.98 0.18 0.07 0.25 (0.15) -- (0.15) $10.08 Period Ended December 31, 1999(e). $ 9.88 0.20 0.16 0.36 (0.20) (0.06) (0.26) $ 9.98
Ratios (to average net assets)/Supplemental Data ------------------------------------------------------------- Net Expenses (before Portfolio Net Assets, Total Investment Net Reductions/ Turnover End of Period Return Income Expenses Reimbursements) Rate* (000's) ------ ---------- -------- ---------------- --------- ------------- BALANCED FUND Year Ended July 31, 2003.......... 8.49% 2.19% 1.19% 1.32% 86% $ 62,776 Year Ended July 31, 2002.......... (7.27)% 2.72% 1.19% 1.31% 34% $ 68,542 Year Ended July 31, 2001+......... 14.09% 3.16% 1.16% 1.27% 14% $102,780 Year Ended July 31, 2000.......... (0.90)% 3.50% 1.13% 1.17% 16% $166,797 Year Ended July 31, 1999.......... 9.74% 2.93% 1.09% 1.10% 23% $319,016 STRATEGIC PORTFOLIOS: AGGRESSIVE GROWTH PORTFOLIO Year Ended July 31, 2003.......... 9.97% 0.03% 0.61% 0.99% 100% $ 14,403 Year Ended July 31, 2002.......... (23.78)% (0.23)% 0.68% 1.04% 50% $ 13,497 Year Ended July 31, 2001+......... (3.30)% 1.34% 0.72% 1.08% 36% $ 23,313 Period Ended July 31, 2000(a)..... 0.01%^ 0.38%^^ 0.75%^^ 1.09%^^ 22% $ 20,485 Period Ended December 31, 1999(b). 16.31%^ 3.23%^^ 0.73%^^ 2.10%^^ 95% $ 18,847 STRATEGIC PORTFOLIOS: GROWTH PORTFOLIO Year Ended July 31, 2003.......... 9.19% 1.01% 0.55% 0.95% 128% $ 10,633 Year Ended July 31, 2002.......... (15.50)% 1.03% 0.66% 1.05% 63% $ 11,930 Year Ended July 31, 2001+......... (1.98)% 2.40% 0.73% 1.12% 38% $ 18,048 Period Ended July 31, 2000(a)..... (0.29)%^ 1.28%^^ 0.76%^^ 1.10%^^ 97% $ 19,495 Period Ended December 31, 1999(c). 8.59%^ 4.82%^^ 0.73%^^ 3.14%^^ 76% $ 11,372 STRATEGIC PORTFOLIOS: GROWTH AND INCOME PORTFOLIO Year Ended July 31, 2003.......... 8.32% 1.60% 0.57% 0.76% 135% $ 51,660 Year Ended July 31, 2002.......... (10.19)% 2.07% 0.55% 0.73% 69% $ 55,180 Year Ended July 31, 2001+......... 1.84% 3.25% 0.57% 0.75% 51% $ 74,878 Period Ended July 31, 2000(a)..... 1.64%^ 2.39%^^ 0.58%^^ 0.72%^^ 21% $ 87,453 Period Ended December 31, 1999(d). 8.40%^ 3.43%^^ 0.70%^^ 0.98%^^ 57% $ 86,700 STRATEGIC PORTFOLIOS: MODERATE GROWTH AND INCOME PORTFOLIO Year Ended July 31, 2003.......... 7.87% 1.99% 0.59% 0.96% 136% $ 17,500 Year Ended July 31, 2002.......... (7.65)% 2.54% 0.59% 0.97% 65% $ 17,843 Year Ended July 31, 2001+......... 4.93% 3.48% 0.71% 1.09% 62% $ 20,264 Period Ended July 31, 2000(a)..... 2.50%^ 3.03%^^ 0.74%^^ 1.03%^^ 21% $ 20,081 Period Ended December 31, 1999(e). 3.64%^ 4.46%^^ 0.73%^^ 1.87%^^ 124% $ 21,384
+ Net investment income (loss) is based on average shares outstanding during the period. * Portfolio turnover is calculated on the basis of the fund as a whole without distinguishing between the classes of shares issued. ^ Not annualized. ^^ Annualized. (a)For the period from January 1, 2000 through July 31, 2000. In conjunction with the reorganization of the AmSouth Funds, the Fund changed its fiscal year end to July 31. (b)For the period from January 28, 1999 (commencement of operations) through December 31, 1999. (c)For the period from February 1, 1999 (commencement of operations) through December 31, 1999. (d)For the period from February 8, 1999 (commencement of operations) through December 31, 1999. (e)For the period from February 10, 1999 (commencement of operations) through December 31, 1999. See notes to financial statements. 132 AMSOUTH FUNDS Financial Highlights I SHARES Selected data for a share outstanding throughout the period indicated.
Investment Activities Less Dividends from -------------------------------------- -------------------------------- Net Asset Net Realized Net Realized Net Asset Value, Net and Unrealized Total from Net Gains from Value, Beginning Investment Gains (Losses) Investment Investment Investment Total End Total of Period Income from Investments Activities Income Transactions Dividends of Period Return --------- ---------- ---------------- ---------- ---------- ------------ --------- --------- ------ GOVERNMENT INCOME FUND Year Ended July 31, 2003.. $10.26 0.42 (0.05) 0.37 (0.43) (0.15) (0.58) $10.05 3.62% Year Ended July 31, 2002.. $10.10 0.49 0.21 0.70 (0.54) -- (0.54) $10.26 7.12% Year Ended July 31, 2001+. $ 9.61 0.56 0.50 1.06 (0.57) -- (0.57) $10.10 11.30% Year Ended July 31, 2000.. $ 9.62 0.57 (0.03) 0.54 (0.55) -- (0.55) $ 9.61 5.91% Year Ended July 31, 1999.. $ 9.87 0.54 (0.26) 0.28 (0.53) -- (0.53) $ 9.62 2.72% LIMITED TERM BOND FUND Year Ended July 31, 2003.. $10.70 0.38 0.02 0.40 (0.44) -- (0.44) $10.66 3.76% Year Ended July 31, 2002.. $10.55 0.50 0.18 0.68 (0.53) -- (0.53) $10.70 6.57% Year Ended July 31, 2001+. $10.13 0.58 0.43 1.01 (0.59) -- (0.59) $10.55 10.26% Year Ended July 31, 2000.. $10.29 0.59 (0.12) 0.47 (0.63) -- (0.63) $10.13 4.71% Year Ended July 31, 1999.. $10.43 0.59 (0.16) 0.43 (0.57) -- (0.57) $10.29 4.14% BOND FUND Year Ended July 31, 2003.. $11.43 0.49 0.10 0.59 (0.54) (0.15) (0.69) $11.33 5.19% Year Ended July 31, 2002.. $11.13 0.53 0.37 0.90 (0.57) (0.03) (0.60) $11.43 8.34% Year Ended July 31, 2001+. $10.52 0.60 0.61 1.21 (0.60) -- (0.60) $11.13 11.79% Year Ended July 31, 2000.. $10.63 0.59 (0.06) 0.53 (0.62) (0.02) (0.64) $10.52 5.24% Year Ended July 31, 1999.. $11.05 0.61 (0.30) 0.31 (0.60) (0.13) (0.73) $10.63 2.68%
Ratios (to average net assets)/Supplemental Data ------------------------------------------------------------ Net Expenses (before Portfolio Net Assets, Investment Net Reductions/ Turnover End of Period Income Expenses Reimbursements) Rate* (000's) ---------- -------- ---------------- --------- ------------- GOVERNMENT INCOME FUND Year Ended July 31, 2003.. 4.08% 0.86% 1.13% 43% $253,447 Year Ended July 31, 2002.. 4.88% 0.85% 1.11% 18% $263,211 Year Ended July 31, 2001+. 5.62% 0.84% 1.10% 25% $302,099 Year Ended July 31, 2000.. 5.68% 0.85% 1.13% 42% $356,642 Year Ended July 31, 1999.. 5.44% 0.60% 1.65% 27% $ 3,150 LIMITED TERM BOND FUND Year Ended July 31, 2003.. 3.52% 0.83% 1.12% 32% $181,187 Year Ended July 31, 2002.. 4.71% 0.86% 1.12% 29% $151,819 Year Ended July 31, 2001+. 5.59% 0.86% 1.12% 44% $155,261 Year Ended July 31, 2000.. 5.74% 0.82% 1.07% 34% $177,323 Year Ended July 31, 1999.. 5.60% 0.71% 0.98% 39% $109,554 BOND FUND Year Ended July 31, 2003.. 4.14% 0.84% 1.12% 33% $599,249 Year Ended July 31, 2002.. 4.77% 0.84% 1.10% 35% $588,979 Year Ended July 31, 2001+. 5.47% 0.84% 1.10% 24% $609,708 Year Ended July 31, 2000.. 5.66% 0.78% 1.03% 27% $501,550 Year Ended July 31, 1999.. 5.57% 0.71% 0.95% 18% $380,226
+ Net investment income (loss) is based on average shares outstanding during the period. * Portfolio turnover is calculated on the basis of the fund as a whole without distinguishing between the classes of shares issued. See notes to financial statements. 133 AMSOUTH FUNDS Financial Highlights I SHARES Selected data for a share outstanding throughout the period indicated.
Investment Activities Less Dividends from ----------------------------------- -------------------------------- Net Realized Net Asset and Unrealized Net Realized Net Asset Value, Net Gains (Losses) Total from Net Gains from Value, Beginning Investment from Investment Investment Investment Total End of of Period Income Investments Activities Income Transactions Dividends Period --------- ---------- -------------- ---------- ---------- ------------ --------- --------- MUNICIPAL BOND FUND Year Ended July 31, 2003...... $10.38 0.37 (0.04) 0.33 (0.35) (0.03) (0.38) $10.33 Year Ended July 31, 2002...... $10.19 0.40 0.21 0.61 (0.41) (0.01) (0.42) $10.38 Year Ended July 31, 2001+..... $ 9.77 0.41 0.41 0.82 (0.40) -- (0.40) $10.19 Year Ended July 31, 2000...... $ 9.87 0.41 (0.05) 0.36 (0.41) (0.05) (0.46) $ 9.77 Year Ended July 31, 1999...... $10.14 0.42 (0.18) 0.24 (0.40) (0.11) (0.51) $ 9.87 FLORIDA TAX-EXEMPT FUND Year Ended July 31, 2003...... $10.80 0.38 (0.09) 0.29 (0.38) -- (0.38) $10.71 Year Ended July 31, 2002...... $10.52 0.40 0.27 0.67 (0.39) -- (0.39) $10.80 Year Ended July 31, 2001+..... $10.16 0.41 0.36 0.77 (0.41) -- (0.41) $10.52 Year Ended July 31, 2000...... $10.22 0.42 (0.02) 0.40 (0.43) (0.03) (0.46) $10.16 Year Ended July 31, 1999...... $10.46 0.43 (0.20) 0.23 (0.41) (0.06) (0.47) $10.22 TENNESSEE TAX-EXEMPT FUND Year Ended July 31, 2003...... $10.36 0.31 (0.05) 0.26 (0.30) -- (0.30) $10.32 Year Ended July 31, 2002...... $10.10 0.33 0.26 0.59 (0.33) -- (0.33) $10.36 Year Ended July 31, 2001+..... $ 9.74 0.38 0.36 0.74 (0.38) -- (0.38) $10.10 Period Ended July 31, 2000(a). $ 9.55 0.22 0.18 0.40 (0.21) -- (0.21) $ 9.74 Year Ended December 31, 1999.. $10.19 0.35 (0.64) (0.29) (0.35) -- (0.35) $ 9.55 Year Ended December 31, 1998.. $10.18 0.37 0.08 0.45 (0.37) (0.07) (0.44) $10.19
Ratios (to average net assets)/Supplemental Data -------------------------------------------------------- Net Assets, Net Expenses (before Portfolio End of Total Investment Net Reductions/ Turnover Period Return Income Expenses Reimbursements) Rate* (000's) ------ ---------- -------- ---------------- --------- -------- MUNICIPAL BOND FUND Year Ended July 31, 2003...... 3.21% 3.51% 0.74% 1.11% 7% $351,021 Year Ended July 31, 2002...... 6.10% 3.89% 0.75% 1.10% 10% $371,126 Year Ended July 31, 2001+..... 8.52% 4.04% 0.74% 1.10% 5% $380,330 Year Ended July 31, 2000...... 3.85% 4.25% 0.68% 1.02% 9% $387,511 Year Ended July 31, 1999...... 2.30% 4.11% 0.61% 0.95% 21% $321,293 FLORIDA TAX-EXEMPT FUND Year Ended July 31, 2003...... 2.72% 3.51% 0.69% 1.15% 6% $ 50,536 Year Ended July 31, 2002...... 6.54% 3.80% 0.72% 1.16% 13% $ 54,901 Year Ended July 31, 2001+..... 7.72% 3.95% 0.75% 1.19% 7% $ 57,181 Year Ended July 31, 2000...... 4.02% 4.19% 0.65% 1.11% 11% $ 61,877 Year Ended July 31, 1999...... 2.16% 4.10% 0.49% 1.01% 34% $ 63,548 TENNESSEE TAX-EXEMPT FUND Year Ended July 31, 2003...... 2.47% 2.86% 0.92% 1.24% 21% $ 39,569 Year Ended July 31, 2002...... 5.93% 3.18% 0.93% 1.21% 60% $ 49,148 Year Ended July 31, 2001+..... 7.70% 3.77% 0.94% 1.23% 123% $ 56,693 Period Ended July 31, 2000(a). 4.26%^ 3.95%^^ 0.95%^^ 1.11%^^ 23% $ 65,160 Year Ended December 31, 1999.. (2.83)% 3.57% 1.00% 1.00% 64% $ 75,537 Year Ended December 31, 1998.. 4.52% 3.65% 0.95% 0.95% 155% $ 91,687
+ Net investment income (loss) is based on average shares outstanding during the period. * Portfolio turnover is calculated on the basis of the fund as a whole without distinguishing between the classes of shares issued. ^ Not annualized. ^^ Annualized. (a)For the period from January 1, 2000 through July 31, 2000. In conjunction with the reorganization of the AmSouth Funds, the Fund changed its fiscal year end to July 31. See notes to financial statements. 134 AMSOUTH FUNDS Financial Highlights I SHARES+ Selected data for a share outstanding throughout the period indicated.
Investment Activities -------------------------------------- Less Net Asset Net Realized Dividends Net Asset Value, Net and Unrealized Total from from Net Value, Beginning Investment Gains (Losses) Investment Investment End Total of Period Income from Investments Activities Income of Period Return --------- ---------- ---------------- ---------- ---------- --------- ------ PRIME MONEY MARKET FUND Year Ended July 31, 2003.......... $1.000 0.008 -- 0.008 (0.008) $1.000 0.78% Year Ended July 31, 2002.......... $1.000 0.017 -- 0.017 (0.017) $1.000 1.68% Year Ended July 31, 2001.......... $1.000 0.051 -- 0.051 (0.051) $1.000 5.18% Year Ended July 31, 2000.......... $1.000 0.052 -- 0.052 (0.052) $1.000 5.31% Year Ended July 31, 1999.......... $1.000 0.045 -- 0.045 (0.045) $1.000 4.59% U.S. TREASURY MONEY MARKET FUND Year Ended July 31, 2003.......... $1.000 0.006 0.006 (0.006) $1.000 0.59% Year Ended July 31, 2002.......... $1.000 0.015 0.015 (0.015) $1.000 1.56% Year Ended July 31, 2001.......... $1.000 0.048 -- 0.048 (0.048) $1.000 4.87% Year Ended July 31, 2000.......... $1.000 0.048 -- 0.048 (0.048) $1.000 4.86% Year Ended July 31, 1999.......... $1.000 0.041 -- 0.041 (0.041) $1.000 4.16% TREASURY RESERVE MONEY MARKET FUND Year Ended July 31, 2003.......... $1.000 0.007 -- 0.007 (0.007) $1.000 0.71% Year Ended July 31, 2002.......... $1.000 0.017 -- 0.017 (0.017) $1.000 1.68% Year Ended July 31, 2001.......... $1.000 0.049 -- 0.049 (0.049) $1.000 5.06% Period Ended July 31, 2000(b)..... $1.000 0.031 -- 0.031 (0.031) $1.000 3.10%^ Year Ended December 31, 1999...... $1.000 0.043 -- 0.043 (0.043) $1.000 4.39% Year Ended December 31, 1998...... $1.000 0.048 -- 0.048 (0.048) $1.000 4.93% TAX-EXEMPT MONEY MARKET FUND Year Ended July 31, 2003.......... $0.999 0.006 0.001 0.007 (0.006) $1.000 0.62% Year Ended July 31, 2002.......... $0.998 0.010 0.001 0.011 (0.010) $0.999 1.02% Year Ended July 31, 2001.......... $0.998 0.029 -- 0.029 (0.029) $0.998 2.98% Year Ended July 31, 2000.......... $1.000 0.032 (0.002) 0.030 (0.032) $0.998 3.23% Year Ended July 31, 1999.......... $1.000 0.027 -- 0.027 (0.027) $1.000 2.76% INSTITUTIONAL PRIME OBLIGATIONS MONEY MARKET FUND Year Ended July 31, 2003........... $1.000 0.012 -- 0.012 (0.012) $1.000 1.19% Year Ended July 31, 2002........... $1.000 0.021 -- 0.021 (0.021) $1.000 2.09% Year Ended July 31, 2001........... $1.000 0.054 -- 0.054 (0.054) $1.000 5.57% Year Ended July 31, 2000........... $1.000 0.057 -- 0.057 (0.057) $1.000 5.82% Period Ended July 31, 1999(c)...... $1.000 0.042 -- 0.042 (0.042) $1.000 4.31%^
Ratios (to average net assets)/Supplemental Data --------------------------------------------------- Net Expenses (before Net Assets, Investment Net Reductions/ End of Period Income Expenses Reimbursements) (000's) ---------- -------- ---------------- ------------- PRIME MONEY MARKET FUND Year Ended July 31, 2003.......... 0.83% 0.65% 0.87% $221,937 Year Ended July 31, 2002.......... 1.68% 0.64% 0.84% $770,519 Year Ended July 31, 2001.......... 5.06% 0.63% 0.84% $745,662 Year Ended July 31, 2000.......... 5.24% 0.67% 0.76% $731,762 Year Ended July 31, 1999.......... 4.51% 0.68% 0.69% $536,899 U.S. TREASURY MONEY MARKET FUND Year Ended July 31, 2003.......... 0.63% 0.81% 0.93% $109,413 Year Ended July 31, 2002.......... 1.60% 0.79% 0.90% $170,343 Year Ended July 31, 2001.......... 4.82% 0.76% 0.87% $199,416 Year Ended July 31, 2000.......... 4.74% 0.73% 0.77% $286,872 Year Ended July 31, 1999.......... 4.10% 0.69% 0.70% $320,847 TREASURY RESERVE MONEY MARKET FUND Year Ended July 31, 2003.......... 0.78% 0.68% 0.90% $ 41,676 Year Ended July 31, 2002.......... 1.70% 0.65% 0.86% $218,404 Year Ended July 31, 2001.......... 4.99% 0.62% 0.85% $266,738 Period Ended July 31, 2000(b)..... 5.24%^^ 0.61%^^ 0.76%^^ $280,546 Year Ended December 31, 1999...... 4.31% 0.59% 0.60% $341,803 Year Ended December 31, 1998...... 4.78% 0.53% (a) $309,979 TAX-EXEMPT MONEY MARKET FUND Year Ended July 31, 2003.......... 0.63% 0.65% 0.87% $129,415 Year Ended July 31, 2002.......... 1.02% 0.66% 0.86% $175,135 Year Ended July 31, 2001.......... 2.95% 0.65% 0.86% $151,905 Year Ended July 31, 2000.......... 3.28% 0.59% 0.80% $141,874 Year Ended July 31, 1999.......... 2.71% 0.49% 0.73% $ 73,880 INSTITUTIONAL PRIME OBLIGATIONS MONEY MARKET FUND Year Ended July 31, 2003........... 1.20% 0.26% 0.41% $175,778 Year Ended July 31, 2002........... 2.08% 0.25% 0.39% $250,091 Year Ended July 31, 2001........... 5.12% 0.25% 0.40% $221,876 Year Ended July 31, 2000........... 5.73% 0.21% 0.41% $138,779 Period Ended July 31, 1999(c)...... 4.82%^^ 0.22%^^ 0.45%^^ $ 69,458
+ Represents Class 1 Shares for Institutional Prime Obligations Money Market Fund. ^ Not annualized. ^^ Annualized. (a)There were no fee reductions in this period. (b)For the period from January 1, 2000 through July 31, 2000. In conjunction with the reorganization of the AmSouth Funds, the Fund changed its fiscal year end to July 31. (c)For the period from September 15, 1998 (commencement of operations) through July 31, 1999. See notes to financial statements. 135 AMSOUTH FUNDS Report of Independent Auditors The Shareholders and Board of Trustees of AmSouth Funds We have audited the accompanying statements of assets and liabilities, including the schedules of portfolio investments, of AmSouth Funds (comprised of AmSouth Value Fund, AmSouth Capital Growth Fund, AmSouth Large Cap Fund, AmSouth Mid Cap Fund, AmSouth Small Cap Fund, AmSouth Balanced Fund, AmSouth Select Equity Fund, AmSouth Enhanced Market Fund, AmSouth International Equity Fund, AmSouth Strategic Portfolios: Aggressive Growth Portfolio, AmSouth Strategic Portfolios: Growth Portfolio, AmSouth Strategic Portfolios: Growth and Income Portfolio, AmSouth Strategic Portfolios: Moderate Growth and Income Portfolio, AmSouth Bond Fund, AmSouth Limited Term Bond Fund, AmSouth Government Income Fund, AmSouth Municipal Bond Fund, AmSouth Florida Tax-Exempt Fund, AmSouth Tennessee Tax-Exempt Fund, AmSouth Prime Money Market Fund, AmSouth U.S. Treasury Money Market Fund, AmSouth Treasury Reserve Money Market Fund, AmSouth Tax-Exempt Money Market Fund and AmSouth Institutional Prime Obligations Money Market Fund) ("the Funds") as of July 31, 2003, and the related statements of operations for the year then ended, the statements of changes in net assets for each of the two years then ended, and the financial highlights for each of the four years or periods then ended. These financial statements and financial highlights are the responsibility of the Funds' management. Our responsibility is to express an opinion on these financial statements and financial highlights based on our audits. The financial highlights presented herein for each of the respective years or periods ended July 31, 1999 and December 31, 1999 were audited by other auditors whose reports dated September 21, 1999 and February 22, 2000, respectively, expressed unqualified opinions. We conducted our audits in accordance with auditing standards generally accepted in the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements and financial highlights are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements and financial highlights. Our procedures included confirmation of securities owned as of July 31, 2003, by correspondence with the custodians and brokers or by other appropriate auditing procedures where replies from brokers were not received. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion. In our opinion, the financial statements and financial highlights referred to above present fairly, in all material respects, the financial position of AmSouth Funds as of July 31, 2003, the results of their operations for the year then ended, the changes in their net assets for each of the two years then ended, and their financial highlights for each of the four years or periods then ended, in conformity with accounting principles generally accepted in the United States. /s/ Ernst & Young LLP Columbus, Ohio September 22, 2003 136 Trustees and Officers of AmSouth Funds (the "Trust") (Unaudited)
Position Held with Term of Office and Other Name, Address AmSouth Length of Time Number of Funds Directorships and Date of Birth Funds Served* Overseen Held ----------------- -------- ------------------ -------------------------- ------------- INDEPENDENT TRUSTEES: Dick D. Briggs, Jr., M.D....... Trustee Since 1992 Trustee of AmSouth Funds N/A 459 DER Building (consisting of 24 1808 7th Avenue South portfolios). UAB Medical Center Birmingham, AL 35294 Date of Birth: 1/28/1934 Wendell D. Cleaver............. Trustee Since 1992 Trustee of AmSouth Funds N/A 225 Lakewood Drive West (consisting of 24 Mobile, AL 36608 portfolios). Date of Birth: 9/23/1934 James H. Woodward, Jr.......... Trustee Since 1987 Trustee of AmSouth Funds N/A University of North Carolina (consisting of 24 at Charlotte portfolios). Trustee of Charlotte, NC 28223 Variable Insurance Funds Date of Birth: 11/24/1939 (consisting of 15 portfolios, 7 of which are advised by AIMCO). Edward P. Farley............... Trustee Since 2001 Trustee of AmSouth Funds 2910 Oak Hollow Drive, SE (consisting of 24 Grand Rapids, MI 49506 portfolios). Date of Birth: 5/3/1946 Samuel W. Jackson, Jr.......... Trustee Since 2003 Trustee of Amsouth Funds N/A 3921 10th Avenue South (consisting of 24 Birmingham, AL 35222 portfolios). Date of Birth: 12/1/1951 Robert J. McMullan............. Trustee Since 2003 Trustee of Amsouth Funds N/A Spring Valley Road (consisting of 24 Morristown, NJ 07960 portfolios). Date of Birth: 3/31/1954
Name, Address Principal Occupation(s) During and Date of Birth the Past Five Years ----------------- ------------------------------------------- INDEPENDENT TRUSTEES: Dick D. Briggs, Jr., M.D....... From March 1997 to present, Chief Medical 459 DER Building officer, Best Doctors(TM) Worldwide 1808 7th Avenue South Healthcare Services; from September 1967 UAB Medical Center to present, Emeritus Professor and Eminent Birmingham, AL 35294 Scholar Chair, Univ. of Alabama at Date of Birth: 1/28/1934 Birmingham; from October 1971 to present, Physician, University of Alabama Health Services Foundation; from 1981 to 1995, Professor and Vice Chairman, Dept. of Medicine, Univ. of Alabama at Birmingham School of Medicine; from 1988 to 1992, President, CEO and Medical Director, Univ. of Alabama Health Services Foundation. Wendell D. Cleaver............. From September 3, 1993 to present, retired; 225 Lakewood Drive West form December 1988 to August 1993, Mobile, AL 36608 Executive Vice President, Chief Operating Date of Birth: 9/23/1934 Officer and Director, Mobile Gas Service Corporation. James H. Woodward, Jr.......... From 1992 to present, Trustee, J.A. Jones, University of North Carolina Inc., Construction Company; from July at Charlotte 1989 to present, Chancellor, The University Charlotte, NC 28223 of North Carolina at Charlotte; from August Date of Birth: 11/24/1939 1984 to July 1989, Senior Vice President, University College, University of Alabama at Birmingham. Edward P. Farley............... Retired, 1999; Executive Vice President, 2910 Oak Hollow Drive, SE Old Kent Bank from January 1981-March Grand Rapids, MI 49506 1999. Director, Kent Funds, an open-end Date of Birth: 5/3/1946 investment management company, for which BISYS Fund Services L.P. serves as distributor, from March 1999 until December 2001. Samuel W. Jackson, Jr.......... From 1997 to present, Principal, Jackson 3921 10th Avenue South Fowlkes & Co., Inc.; from 1994-1996 Vice Birmingham, AL 35222 President for Financial Affairs and Date of Birth: 12/1/1951 Administration-University of Alabama at Birmingham. Robert J. McMullan............. From 1998 to present, Chief Financial Spring Valley Road Officer GlobeSpanVirata, Inc.; from 1989 Morristown, NJ 07960 through 1998, Executive Vice President & Date of Birth: 3/31/1954 Chief Financial Officer The BISYS Group, Inc.
137 Trustees and Officers of AmSouth Funds (the "Trust") (Unaudited) (Continued)
Position Held with Term of Office and Other Name, Address AmSouth Length of Time Number of Funds Directorships and Date of Birth Funds Served* Overseen Held ----------------- -------- ------------------ ------------------------ ------------- INTERESTED TRUSTEES: J. David Huber, Jr.......... Chairman Since 1987 Chairman and Trustee of N/A 3435 Stelzer Road and AmSouth Funds Columbus, OH 43219 Trustee (consisting of 24 Date of Birth: 5/3/1946 portfolios). Geoffrey von Kuhn........... Trustee Since 2002 Trustee of AmSouth Funds N/A Wealth Management Group (consisting of 24 AmSouth Bank portfolios). AmSouth Harbert Plaza - Upper Lobby 1901 Sixth Avenue North Birmingham, AL 35203 Date of Birth: 10/26/1951 ADVISORY TRUSTEES: Norma A. Coldwell........... Advisory Since 2002 Advisory Trustee of N/A 3330 Southwestern Blvd. Trustee AmSouth Funds Dallas, TX 75225 (consisting of 24 Date of Birth: 6/23/1925 portfolios). Homer H. Turner, Jr......... Advisory Since 2002 Advisory Trustee of N/A 751 Cary Drive Trustee AmSouth Funds Auburn, AL 36830-2505 (consisting of 24 Date of Birth: 2/18/1928 portfolios).
Name, Address Principal Occupation(s) During and Date of Birth the Past Five Years ----------------- -------------------------------------------- INTERESTED TRUSTEES: J. David Huber, Jr.......... From June 1987 to present, employee of 3435 Stelzer Road BISYS Fund Services L.P. Columbus, OH 43219 Date of Birth: 5/3/1946 Geoffrey von Kuhn........... From April 2001 to present, Senior Wealth Management Group Executive Vice President, AmSouth AmSouth Bank Bancorporation and AmSouth Bank, Head, AmSouth Harbert Plaza - Wealth Management Group; April 2000 to Upper Lobby April 2001, Head U.S. Private Bank, 1901 Sixth Avenue Cititgroup; February 1998 to April 2000, North Birmingham, AL Senior Managing Director and Vice 35203 Chairman, Banc One Capital Markets; May Date of Birth: 10/26/1951 1996 to February 1998, Senior Managing Director, Bank One Institutional Investment Services, Inc. ADVISORY TRUSTEES: Norma A. Coldwell........... Trustee, AmSouth Funds 2000-2002; 3330 Southwestern Blvd. International Economist and Consultant; Dallas, TX 75225 Executive Vice President of Coldwell Date of Birth: 6/23/1925 Financial consultants; Trustee and Treasurer of Meridian International Center (International Education and Cultural Group); Member of the Board of Advisors of Meridian International Center and Emerging Capital Markets, SA (Montevideo, Uruguay); formerly, Chief International Economist of Riggs National Bank, Washington, DC. Homer H. Turner, Jr......... Formerly, Trustee, AmSouth Funds; from 751 Cary Drive June 1991 to present, retired; until June Auburn, AL 36830-2505 1991, Vice President, Birmingham Date of Birth: 2/18/1928 Division, Alabama Power Company.
-------- * There is no defined term of office for Trustees of AmSouth Funds. Messrs. Huber and von Kuhn are considered to be interested persons (as defined in the 1940 Act) of AmSouth Funds. Mr. Huber is considered an interested person on the basis of his employment with BISYS Fund Services L.P., AmSouth Funds' Distributor. Mr. von Kuhn is considered to be an interested person on the basis of his employment by AmSouth Bank, the Advisor's parent company. 138 Trustees and Officers of AmSouth Funds (Unaudited) (Continued) Executive Officers.
Position Held with Term of Office and Other AmSouth Length of Time Number of Funds Directorships Name and Date of Birth Funds Served* Overseen Held ---------------------- --------- ------------------ ----------------------- ------------- John F. Calvano............ President Since 1999 President of AmSouth N/A Date of Birth: 3/30/1960 Funds (consisting of 24 portfolios). Walter B. Grimm............ Vice Since 1994 Vice President of N/A Date of Birth: 6/30/1945 President AmSouth Funds (consisting of 24 portfolios). Trent Statczar............. Treasurer Since 2003 Treasurer of Amsouth N/A Date of Birth: 8/31/1971 Funds (consisting of 24 portfolios). Rodney L. Ruehle........... Secretary Since 1999 Secretary of AmSouth N/A Date of Birth: 4/26/1968 Funds (consisting of 24 portfolios).
Principal Occupation(s) During Name and Date of Birth the Past Five Years ---------------------- ----------------------------------------- John F. Calvano............ From September 1999 to present, Senior Date of Birth: 3/30/1960 Vice President, AmSouth Bank; from October 1994 to September 1999, employee of BISYS Fund Services Limited Partnership; from July 1992 to August 1994, investment representative, BA Investment Services; and from October 1986 to July 1994, Marketing Manager, Great Western Investment Management. Walter B. Grimm............ From June 1992 to present, employee of Date of Birth: 6/30/1945 BISYS Fund Services L.P.; from 1990 to 1992, President and CEO, Security Bancshares; from July 1981 to 1990, President of Leigh Investments Consulting (investment firm). Trent Statczar............. From June 1993 to present, employee of Date of Birth: 8/31/1971 BISYS Fund Services. Rodney L. Ruehle........... From August 1990 to August 1995, Date of Birth: 4/26/1968 Assistant Treasurer of the Cardinal Group of Funds; from August 1995 to present, Director Administration Services, BISYS Fund Services L.P. From 1999-present, Vice President and Secretary, Fifth Third Funds, an open-end management investment company for which BISYS Fund Services, LP serves as distributor.
139 Trustees and Officers of AmSouth Funds (the "Trust") (Unaudited) (Continued)
Position Held with Term of Office and Other AmSouth Length of Time Number of Funds Directorships Name and Date of Birth Funds Served* Overseen Held ---------------------- --------- ------------------ -------------------------- ------------- Alaina V. Metz............ Assistant Since 1995 Assistant Secretary of N/A Date of Birth: 4/7/1967 Secretary AmSouth Funds (consisting of 24 portfolios). Secretary of Variable Insurance Funds (consisting of 15 portfolios, 7 of which are advised by AIMCO).
Principal Occupation(s) During Name and Date of Birth the Past Five Years ---------------------- -------------------------------------------- Alaina V. Metz............ From June 1995 to Present, Chief Date of Birth: 4/7/1967 Administrator, Administrative and Regulatory Services, BISYS Fund Services Limited Partnership; from May 1989 to June 1995, Supervisor, Mutual Fund Legal Department, Alliance Capital Management. Currently, Chairman, Gartmore Mutual Funds, LEADER Mutual Funds, Shay Asset Management Fund; Alpine Equity Trust, and Barr Rosenberg Variable Insurance Trust; Vice President, Pacific Capital Funds; Secretary, Variable Insurance Funds and Signal Funds; Assistant Secretary, BB&T Funds, BNY Hamilton Funds, Inc., Brenton Mutual Funds, Citizens Funds, Counter Bond Fund, The Empire Builder Tax Free Bond Fund, Eureka Funds, Gartmore Variable Insurance Trust, Governor Funds, Hirtle Callaghan Trust, HSBC Advisor Funds Trust (Class Y-- Offshore Feeder Funds), HSBC Family of Funds, HSBC Investor Funds, Kensington Funds, Kent Funds, Metamarkets.com, Meyers Investment Trust, MMA Praxis Mutual Funds, Mutual Fund Group--Chase Vista Funds, Mutual Fund Investment Trust--Chase Funds, Mutual Master Investment Trust, Mutual Fund Select Group--Chase Vista Funds, Mutual Fund Select Trust--Chase Vista Funds, Mutual Fund Trust--Chase Vista Funds, Nationwide Asset Allocation Trust (NAAT), Old Westbury Funds, One Group Mutual Funds, RBC Funds, Shay-- Institutional Investors Capital Appreciation Fund, Inc., Shay--M.S.B. Fund, Inc., Summit Investment Trust, The Shelby Funds, United American Cash Reserves, USAllianz Funds, USAllianz Variable Insurance Products Trust, UST of Boston, Valiant Fund, Van Ness Funds, Victory Portfolios, Victory Variable Insurance, The Williamette Funds, Oak Value, Old National Funds, ProFunds, 1st Source Monogram Funds, Ambassador Funds, American Independence Funds Trust, and American Performance; and Treasurer, Legacy Funds Group.
-------- * There is no defined term of office for officers of AmSouth Funds. The officers of AmSouth Funds are interested persons (as defined in the 1940 Act) and receive no compensation directly from AmSouth Funds for performing the duties of their offices. The Statement of Additional Information ("SAI") includes additional information about the Trust's Directors and Officers. To obtain a copy of the SAI, without charge, call (800) 451-8382. 140 Compensation of Trustees and Officers of AmSouth Funds (the "Trust") (Unaudited) The officers of the Trust receive no compensation directly from the Trust for performing the duties of their offices. BISYS receives fees from the Trust for acting as Administrator and BISYS Fund Services, Inc. receives fees from the Trust for acting as Transfer Agent for and for providing fund accounting services to the Trust. Messrs. Grimm, Ruehle, and Statczar and Ms. Metz are employees of BISYS Fund Services Limited Partnership. COMPENSATION TABLE (1)
Pension or Retirement Total Aggregate Benefits Estimated Compensation Compensation Accrued as Annual from AmSouth from AmSouth Part of Fund Benefits upon Mutual Funds Name Fund Expenses Expenses Retirement Paid to Trustee ---- ------------- ------------ ------------- --------------- J. David Huber........... None None None None Geoffrey A. von Kuhn..... None None None None James H. Woodward, Jr.... $25,250 None None $25,250 *Homer H. Turner......... $24,000 None None $24,000 Wendell D. Cleaver....... $25,250 None None $25,250 Dick D. Briggs, Jr., M.D. $25,250 None None $25,250 *Norma S. Coldwell....... $24,000 None None $24,000 Edward P. Farley......... $25,250 None None $25,250 **Samuel W. Jackson, Jr.. $ 7,250 None None $ 7,250 **Robert J. McMullan..... $ 7,250 None None $ 7,250
-------- (1)Figures are for the Trust's fiscal year ended July 31, 2003. * Mr. Turner and Ms. Coldwell retired from the Board of Trustees and assumed "Advisory Trustee" status in March, 2002. ** On June 18, 2003, Messrs. Jackson and McMullan were appointed by the Board to serve as Trustees of the Trust. 141 [LOGO] AMSOUTH FUNDS(R) ANNUAL REPORT JULY 31, 2003 Investment Advisor ------------------------------------------ AmSouth Investment Management Company, LLC 1901 6th Avenue North Birmingham AL 35203 Investment Subadvisors ------------------------------------------ AmSouth Asset Management, Inc. 1901 6th Avenue North Birmingham AL 35203 . Bond Fund . Capital Growth Fund . Large Cap Fund . Value Fund OakBrook Investments, LLC 701 Warrenville Road, Suite 135 Lisle IL 60532 . Enhanced Market Fund . Mid Cap Fund . Select Equity Fund Sawgrass Asset Management, LLC 1579 The Greens Way, Suite 20 Jacksonville FL 32250 . Small Cap Fund Dimensional Fund Advisors, Inc. 1299 Ocean Avenue Santa Monica CA 90401 . International Equity Fund Distributor ------------------------------------------ BISYS Fund Services 3435 Stelzer Road, Suite 1000 Columbus OH 43219 Legal Counsel ------------------------------------------ Kirkpatrick & Lockhart, LLP 1800 Massachusetts Avenue, N.W. Washington DC 20036 Transfer Agent ------------------------------------------ BISYS Fund Services Ohio, Inc. 3435 Stelzer Road, Suite 1000 Columbus OH 43219 Auditors ------------------------------------------ Ernst & Young, LLP 1100 Huntington Center 41 South High Street Columbus OH 43215 9/03 ASO-AR Item 2. Code of Ethics. Disclose whether, as of the end of the period covered by the report, the registrant has adopted a code of ethics that applies to the registrant's principal executive officer, principal financial officer, principal accounting officer or controller, or persons performing similar functions, regardless of whether these individuals are employed by the registrant or a third party. If the registrant has not adopted such a code of ethics, explain why it has not done so. The registrant has adopted a code of ethics that applies to the registrant's principal executive officer, principal financial officer, principal accounting officer or controller, or persons performing similar functions. This code of ethics was filed as an exhibit to the registrant's Form N-CSR on October 6, 2003 and is incorporated herein by reference. Item 3. Audit Committee Financial Expert. (a) (1) Disclose that the registrant's board of directors has determined that the registrant either: (i) Has at least one audit committee financial expert serving on its audit committee; or (ii) Does not have an audit committee financial expert serving on its audit committee. (2) If the registrant provides the disclosure required by paragraph (a)(1)(i) of this Item, it must disclose the name of the audit committee financial expert and whether that person is "independent." In order to be considered "independent" for purposes of this Item, a member of an audit committee may not, other than in his or her capacity as a member of the audit committee, the board of directors, or any other board committee: (i) Accept directly or indirectly any consulting, advisory, or other compensatory fee from the issuer; or (ii) Be an "interested person" of the investment company as defined in Section 2(a)(19) of the Act (15 U.S.C. 80a- 2(a)(19)). (3) If the registrant provides the disclosure required by paragraph (a)(1)(ii) of this Item, it must explain why it does not have an audit committee financial expert. 3(a)(1) The registrant's board of directors has determined that the registrant has at least one audit committee financial expert serving on its audit committee. 3(a)(2) The audit committee financial experts are Samuel W. Jackson,Jr. and Robert J. McMullan. They are independent trustees. Item 4. Principal Accountant Fees and Services. (a) Disclose, under the caption Audit Fees, the aggregate fees billed for each of the last two fiscal years for professional services rendered by the principal accountant for the audit of the registrant's annual financial statements or services that are normally provided by the accountant in connection with statutory and regulatory filings or engagements for those fiscal years. (b) Disclose, under the caption Audit-Related Fees, the aggregate fees billed in each of the last two fiscal years for assurance and related services by the principal accountant that are reasonably related to the performance of the audit of the registrant's financial statements and are not reported under paragraph (a) of this Item. Registrants shall describe the nature of the services comprising the fees disclosed under this category. (c) Disclose, under the caption Tax Fees, the aggregate fees billed in each of the last two fiscal years for professional services rendered by the principal accountant for tax compliance, tax advice, and tax planning. Registrants shall describe the nature of the services comprising the fees disclosed under this category. (d) Disclose, under the caption All Other Fees, the aggregate fees billed in each of the last two fiscal years for products and services provided by the principal accountant, other than the services reported in paragraphs (a) through (c) of this Item. Registrants shall describe the nature of the services comprising the fees disclosed under this category. (e) (1) Disclose the audit committee's pre-approval policies and procedures described in paragraph (c)(7) of Rule 2-01 of Regulation S-X. (2) Disclose the percentage of services described in each of paragraphs (b) through (d) of this Item that were approved by the audit committee pursuant to paragraph (c)(7)(i)(C) of Rule 2-01 of Regulation S-X. (f) If greater than 50 percent, disclose the percentage of hours expended on the principal accountant's engagement to audit the registrant's financial statements for the most recent fiscal year that were attributed to work performed by persons other than the principal accountant's full-time, permanent employees. (g) Disclose the aggregate non-audit fees billed by the registrant's accountant for services rendered to the registrant, and rendered to the registrant's investment adviser (not including any sub-adviser whose role is primarily portfolio management and is subcontracted with or overseen by another investment adviser), and any entity controlling, controlled by, or under common control with the adviser that provides ongoing services to the registrant for each of the last two fiscal years of the registrant. (h) Disclose whether the registrant's audit committee of the board of directors has considered whether the provision of nonaudit services that were rendered to the registrant's investment adviser (not including any subadviser whose role is primarily portfolio management and is subcontracted with or overseen by another investment adviser), and any entity controlling, controlled by, or under common control with the investment adviser that provides ongoing services to the registrant that were not pre-approved pursuant to paragraph (c)(7)(ii) of Rule 2-01 of Regulation S-X is compatible with maintaining the principal accountant's independence. Only effective for annual reports with periods ending on or after December 15, 2003. Item 5. Audit Committee of Listed Registrants. (a) If the registrant is a listed issuer as defined in Rule 10A-3 under the Exchange Act (17 CFR 240.10A-3), state whether or not the registrant has a separately-designated standing audit committee established in accordance with Section 3(a)(58)(A) of the Exchange Act (15 U.S.C. 78c(a)(58)(A)). If the registrant has such a committee, however designated, identify each committee member. If the entire board of directors is acting as the registrant's audit committee as specified in Section 3(a)(58)(B) of the Exchange Act (15 U.S.C. 78c(a)(58)(B)), so state. (b) If applicable, provide the disclosure required by Rule 10A-3(d) under the Exchange Act (17 CFR 240.10A-3(d)) regarding an exemption from the listing standards for all audit committees. Not applicable. Item 6. Schedule of Investments. Only effective for reports with periods ending on or after July 9, 2004. Item 7. Disclosure of Proxy Voting Policies and Procedures for Closed-End Management Investment Companies. A closed-end management investment company that is filing an annual report on this Form N-CSR must, unless it invests exclusively in non-voting securities, describe the policies and procedures that it uses to determine how to vote proxies relating to portfolio securities, including the procedures that the company uses when a vote presents a conflict between the interests of its shareholders, on the one hand, and those of the company's investment adviser; principal underwriter; or any affiliated person (as defined in Section 2(a)(3) of the Investment Company Act of 1940 (15 U.S.C. 80a-2(a)(3)) and the rules thereunder) of the company, its investment adviser, or its principal underwriter, on the other. Include any policies and procedures of the company's investment adviser, or any other third party, that the company uses, or that are used on the company's behalf, to determine how to vote proxies relating to portfolio securities. Not applicable. Item 8. Purchases of Equity Securities by Closed-End Management Investment Company and Affiliated Purchasers. (a) If the registrant is a closed-end management investment company, provide the information specified in paragraph (b) of this Item with respect to any purchase made by or on behalf of the registrant or any "affiliated purchaser," as defined in Rule 10b-18(a)(3) under the Exchange Act (17 CFR 240.10b-18(a)(3)), of shares or other units of any class of the registrant's equity securities that is registered by the registrant pursuant to Section 12 of the Exchange Act (15 U.S.C. 781). Not applicable. Item 9. Submission of Matters to a Vote of Security Holders. Describe any material changes to the procedures by which shareholders may recommend nominees to the registrant's board of directors, where those changes were implemented after the registrant last provided disclosure in response to the requirements of Item 7(d)(2)(ii)(G) of Schedule 14A (17 CFR 240.14a-101), or this Item. No Material changes to report. Item 10. Controls and Procedures. (a) Disclose the conclusions of the registrant's principal executive and principal financial officers, or persons performing similar functions, regarding the effectiveness of the registrant's disclosure controls and procedures (as defined in Rule 30a-3(c) under the Act (17 CFR 270.30a-3(c))) as of a date within 90 days of the filing date of the report that includes the disclosure required by this paragraph, based on the evaluation of these controls and procedures required by Rule 30a-3(b) under the Act (17 CFR 270.30a-3(b)) and Rules 13a-15(b) or 15d-15(b) under the Exchange Act (17 CFR 240.13a-15(b) or 240.15d-15(b)). In the opinion of the principal executive officer and principal financial officer, based on their evaluation, the registrant's disclosure controls and procedures are adequately designed and are operating effectively to ensure (i) that material information relating to the registrant, including its consolidated subsidiaries, is made known to them by others within those entities, particularly during the period in which this report is being prepared; and (ii) that information required to be disclosed by the registrant on Form N-CSR is recorded, processed, summarized and reported within the time periods specified in the Securities and Exchange Commission's rules and forms. (b) Disclose any change in the registrant's internal control over financial reporting (as defined in Rule 30a-3(d) under the Act (17 CFR 270.30a-3(d)) that occurred during the registrant's last fiscal half-year (the registrant's second fiscal half-year in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting. There were no changes in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal half-year (the registrant's second fiscal half-year in the case of an annual report) that have materially affected or are reasonably likely to materially affect, the registrant's internal control over financial reporting. Item 11. Exhibits. (a) File the exhibits listed below as part of this Form. Letter or number the exhibits in the sequence indicated. (a)(1) Any code of ethics, or amendment thereto, that is the subject of the disclosure required by Item 2, to the extent that the registrant intends to satisfy the Item 2 requirements through filing of an exhibit. Filed as an exhibit to Form NCSR on October 6, 2003 and incorporated herein by reference. (a)(2) A separate certification for each principal executive officer and principal financial officer of the registrant as required by Rule 30a-2(a) under the Act (17 CFR 270.30a-2(a)). Certifications pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 are attached hereto. (b) A separate or combined certification for each principal executive officer and principal officer of the registrant as required by Rule 30a-2(b) under the Act. This certification will not be deemed "filed" for purposes Section 18 of the Exchange Act (15 U.S.C. 78r), or otherwise subject to the liability of that section. This certification will not be deemed to be incorporated by reference into any filing under the Securities Act of 1933 or the Exchange Act, except to the extent that the Registrant specifically incorporates it by reference. Certifications pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 are furnished herewith. SIGNATURES Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized. (Registrant) AmSouth Funds -------------------------------------------------------------------- By (Signature and Title)* /s/ Nadeem Yousaf Nadeem Yousaf, Treasurer ------------------------------------------------------- Date May 18, 2004 ---------------- Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated. By (Signature and Title)* /s/ John Calvano John Calvano, President ------------------------------------------------------- Date May 18, 2004 ---------------- By (Signature and Title)* /s/ Nadeem Yousaf Nadeem Yousaf, Treasurer ------------------------------------------------------- Date May 18, 2004 ---------------- * Print the name and title of each signing officer under his or her signature.