-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, N7JnygsJYpiOxYCflZRnkNIg0qv75kUShVpetRBvSImWFlAjBC6NimyBFKKQU/D6 9MhNsrXpHoHvzvCkdS76RQ== 0000935069-00-000033.txt : 20000203 0000935069-00-000033.hdr.sgml : 20000203 ACCESSION NUMBER: 0000935069-00-000033 CONFORMED SUBMISSION TYPE: N-30D PUBLIC DOCUMENT COUNT: 1 CONFORMED PERIOD OF REPORT: 19991130 FILED AS OF DATE: 20000131 FILER: COMPANY DATA: COMPANY CONFORMED NAME: STI CLASSIC FUNDS CENTRAL INDEX KEY: 0000883939 STANDARD INDUSTRIAL CLASSIFICATION: [] STATE OF INCORPORATION: MA FISCAL YEAR END: 0531 FILING VALUES: FORM TYPE: N-30D SEC ACT: SEC FILE NUMBER: 811-06557 FILM NUMBER: 517929 BUSINESS ADDRESS: STREET 1: 2 OLIVER STREET CITY: BOSTON STATE: MA ZIP: 02109 BUSINESS PHONE: 6109896602 MAIL ADDRESS: STREET 1: 530 E SWEDESFORD ROAD CITY: WAYNE STATE: PA ZIP: 19087-1693 N-30D 1 STI CLASSIC INSTITUTIONAL SEMI-ANNUAL REPORT SEMI-ANNUAL ................................................................................ FINANCIAL REPORT ................................................................................ STI CLASSIC FUNDS ................................................................................ A Family of Mutual Funds ................................................................................ CLASSIC INSTITUTIONAL CASH MANAGEMENT MONEY MARKET FUND CLASSIC INSTITUTIONAL U.S. GOVERNMENT SECURITIES MONEY MARKET FUND CLASSIC INSTITUTIONAL U.S. TREASURY SECURITIES MONEY MARKET FUND November 30, 1999 [LOGO OMITTED] Dear Valued STI Classic Trust Shareholder: As of November 30, 1999, your STI Classic Funds' assets totaled $20.5 billion or 2.7% more than the totals reported to you as of May 31, 1999, the Funds' fiscal year end. The U.S. economic expansion is approaching nine years duration and remains strong with modest inflation. However, interest rates have risen over a full percentage point in 1999, as bond investors feared the strong economy and a tight employment situation would lead to an inflationary surge. Inflation continues to be well controlled due to strong productivity gains and little pricing power at corporations. Thus, we believe yields are quite high and attractive. The Federal Reserve has increased money market rates by three-quarters of a percentage point in hopes of slowing the growth pace and to preempt inflationary pressures. Stocks continue to advance as a result of the excellent economic environment. At some point, we think additional FED rate increases will drain liquidity from the system and increase competition for stocks. The STI Classic Funds introduced two new funds in the fourth quarter of this year: the Core Equity Fund will focus on companies in the $1 billion plus market capitalization range with superior growth in earnings, sales and other traditional valuation measures. The second fund, the E-Commerce Opportunity Fund, a growth fund, invests in companies that are expected to benefit substantially from electronic commerce. With 34 funds now available, the STI Classic Funds are well positioned, as we approach the new millennium, with a broad range of high quality mutual funds that utilize a time tested and disciplined investment management approach. Sincerely, /s/signature omitted Anthony R. Gray Chairman, Chief Investment Officer STI Capital Management, N.A. /s/signature omitted Douglas S. Phillips, CFA President, Chief Investment Officer Trusco Capital Management, Inc. 1 STATEMENT OF NET ASSETS - -------------------------------------------------------------------------------- STI CLASSIC FUNDS NOVEMBER 30, 1999 CLASSIC INSTITUTIONAL CASH MANAGEMENT MONEY MARKET FUND - -------------------------------------------------------------------------------- FACE AMOUNT (000) VALUE (000) - -------------------------------------------------------------------------------- COMMERCIAL PAPER (15.3%) FINANCE (11.0%) Credit Suisse First Boston 5.750%, 07/14/00 $ 25,000 $ 25,000 Daimlerchrysler 5.895%, 03/23/00 25,000 24,554 Den Norske Bank 5.840%, 02/10/00 25,000 24,720 Deutsche Bank Financial 5.320%, 12/01/99 40,000 40,000 5.350%, 02/16/00 35,000 34,600 Merrill Lynch 5.350%, 02/01/00 35,000 34,678 Sigma Finance 5.750%, 07/20/00 25,000 25,000 Ubs Finance 4.930%, 12/21/99 35,000 34,904 Ubs Finance (De) 4.780%, 12/23/99 15,000 14,956 --------- 258,412 --------- INDUSTRIAL (4.3%) Archer Daniels Midland 5.650%, 03/22/00 20,000 19,648 Ford Motor 5.810%, 04/13/00 50,000 48,919 General Electric Capital 5.730%, 08/01/00 35,000 33,641 --------- 102,208 --------- Total Commercial Paper (Cost $360,620) 360,620 --------- CORPORATE OBLIGATIONS (36.1%) FINANCE (33.0%) Associates Corporation of North America 6.000%, 03/15/00 150 150 - -------------------------------------------------------------------------------- FACE AMOUNT (000) VALUE (000) - -------------------------------------------------------------------------------- FINANCE -- CONTINUED Bayerische Hypotheken Bank 6.125%, 12/30/99 $ 227 $ 227 Bayerische Hypotheken Bank, MTN 6.250%, 12/30/99 150 150 6.000%, 01/07/00 416 416 Bayerische Vereinsbank, MTN 6.000%, 12/10/99 206 206 Bear Stearns 5.810%, 06/19/00 35,000 35,000 6.500%, 07/05/00 25,000 25,053 Bear Stearns, MTN (B) 5.573%, 01/18/00 15,000 15,000 Beneficial, MTN (B) 5.583%, 06/01/00 10,000 10,006 Beta Finance, MTN (B) 6.118%, 04/17/00 15,000 15,000 5.520%, 06/12/00 25,000 25,000 5.910%, 08/16/00 30,000 30,000 Branch Banking and Trust (B) 5.770%, 05/25/00 35,000 34,993 Chrysler Financial 9.500%, 12/15/99 7,086 7,098 Chrysler Financial, MTN 6.375%, 01/28/00 3,750 3,757 Commerzbank, MTN 5.125%, 03/07/00 148 148 Credit Suisse First Boston International, MTN (A) 5.400%, 03/20/00 20,000 20,000 5.590%, 06/08/00 10,000 9,994 Credit Suisse First Union (A) (B) 5.800%, 06/01/00 35,000 34,998 Decrorgan, MTN (B) 5.398%, 07/03/00 40,000 40,000 Deutsche Bank, MTN 6.500%, 12/29/99 677 678 2 (UNAUDITED) - -------------------------------------------------------------------------------- FACE AMOUNT (000) VALUE (000) - -------------------------------------------------------------------------------- FINANCE -- CONTINUED Dresdner Finance, MTN 5.500%, 12/21/99 $ 475 $ 475 First Union (B) 5.810%, 06/01/00 25,000 25,000 Ford Motor Credit, MTN 6.125%, 12/03/99 870 870 8.625%, 01/24/00 344 346 General Electric Capital, MTN 5.430%, 01/17/00 100 100 5.840%, 03/30/00 150 150 GMAC 7.000%, 03/01/00 195 196 GMAC, MTN 6.250%, 01/06/00 500 500 8.500%, 01/31/00 2,000 2,011 Goldman Sachs, MTN 6.100%, 09/25/00 30,000 30,000 Goldman Sachs, MTN (A) 5.280%, 02/24/00 10,000 10,000 Goldman Sachs, MTN (A) (B) 6.321%, 01/21/00 40,000 40,007 Helaba Finance Bank, MTN 5.750%, 12/21/99 464 464 Household Finance, MTN (B) 5.950%, 09/14/00 30,000 29,986 Interamer Development Bank, MTN 6.250%, 12/31/99 145 145 International Bank Reconciliation and Development, MTN 5.150%, 03/23/00 326 326 J.P. Morgan, MTN (B) 5.800%, 05/04/00 20,000 20,000 Key Bank (B) 5.810%, 07/14/00 39,000 38,988 Merrill Lynch (B) 5.830%, 02/17/00 15,000 15,000 Merrill Lynch, MTN (B) 5.890%, 09/05/00 25,000 24,998 - -------------------------------------------------------------------------------- FACE AMOUNT (000) VALUE (000) - -------------------------------------------------------------------------------- FINANCE -- CONTINUED Morgan Stanley Dean Witter 6.250%, 03/15/00 $ 1,500 $ 1,504 Morgan Stanley Dean Witter (B) 5.860%, 01/20/00 35,000 35,000 5.860%, 02/04/00 35,000 35,000 Morgan Stanley Dean Witter, MTN (B) 6.161%, 02/23/00 10,000 10,003 Rabobank, MTN 6.375%, 12/31/99 223 223 6.000%, 12/31/99 122 122 Sigma Finance (A) 5.305%, 03/13/00 15,000 15,000 Sigma Finance, MTN 5.350%, 05/22/00 25,000 25,000 Southeastern Retirement Association (B) 5.650%, 12/01/99 21,500 21,500 Tampa Bay Devil Rays (B) 5.650%, 12/01/99 50,500 50,500 Texas State 5.850%, 12/01/99 1,250 1,250 Toronto Dominion Bank, MTN 6.500%, 03/27/00 509 511 Toyota Motor Credit 5.750%, 12/20/99 382 382 Wachovia 7.000%, 12/15/99 2,443 2,445 Xerox Credit, MTN 5.635%, 07/14/00 30,000 29,992 --------- 775,868 --------- INDUSTRIAL (2.9%) Anheuser Busch (B) 5.344%, 06/16/00 40,000 39,987 Anheuser Busch, MTN 7.850%, 12/01/99 1,300 1,300 3 STATEMENT OF NET ASSETS - -------------------------------------------------------------------------------- STI CLASSIC FUNDS NOVEMBER 30, 1999 CLASSIC INSTITUTIONAL CASH MANAGEMENT MONEY MARKET FUND--CONTINUED - -------------------------------------------------------------------------------- FACE AMOUNT (000) VALUE (000) - -------------------------------------------------------------------------------- INDUSTRIAL -- CONTINUED AT&T, MTN 8.250%, 01/11/00 $ 2,000 $ 2,007 Caterpillar Financial, MTN 5.750%, 01/31/00 122 122 Ford Holdings 9.250%, 03/01/00 3,940 3,978 Phillip Morris (B) 9.250%, 02/15/00 900 907 6.150%, 03/15/00 11,900 11,926 Unilever NV, MTN 8.000%, 12/08/99 110 110 Wal-Mart (B) 5.650%, 02/01/00 8,000 8,007 --------- 68,344 --------- UTILITIES (0.2%) BellSouth 6.500%, 02/01/00 500 501 Province of Quebec 9.125%, 03/01/00 4,000 4,038 Southern California Edison 8.250%, 02/01/00 650 653 --------- 5,192 --------- Total Corporate Obligations (Cost $849,404) 849,404 --------- CERTIFICATES OF DEPOSIT (9.6%) Albertson's Inc. (A) (B) 5.408%, 07/14/00 40,000 39,990 Amex Centurion Bank (B) 5.910%, 02/25/00 30,000 30,000 Bayerische Hypo 5.270%, 03/03/00 20,000 19,995 Branch Banking and Trust (B) 5.800%, 02/01/00 20,000 19,999 Canadian Imperial Bank 5.120%, 02/23/00 15,000 14,998 - -------------------------------------------------------------------------------- FACE AMOUNT (000) VALUE (000) - -------------------------------------------------------------------------------- CERTIFICATES OF DEPOSIT -- CONTINUED Commerzbank AG 5.160%, 02/25/00 $ 13,000 $ 12,998 First USA Bank 6.040%, 08/04/00 40,000 40,000 Royal Bank of Canada 6.180%, 10/25/00 35,000 34,979 Toronto Dominion Bank 5.270%, 03/03/00 12,500 12,497 --------- Total Certificates of Deposit (Cost $225,456) 225,456 --------- ASSET-BACKED SECURITIES (0.0%) Americredit Auto Receivables Trust, Ser 1999-B, Cl A1 4.917%, 06/12/00 472 472 --------- Total Asset-Backed Securities (Cost $472) 472 --------- TAXABLE MUNICIPAL BOND (1.3%) California Housing Finance Agency (MBIA), (B) 5.600%, 12/02/99 30,000 30,000 --------- Total Taxable Municipal Bond (Cost $30,000) 30,000 --------- BANK NOTES (5.1%) American Express Centurion (B) 5.800%, 05/08/00 15,000 15,000 5.810%, 06/02/00 35,000 35,000 Branch Banking and Trust (B) 5.910%, 09/05/00 20,000 20,000 Fcc National Bank 6.065%, 08/14/00 25,000 24,994 First Union (B) 5.780%, 05/11/00 25,000 24,998 --------- Total Bank Notes (Cost $119,992) 119,992 --------- 4 - -------------------------------------------------------------------------------- (UNAUDITED) - -------------------------------------------------------------------------------- FACE AMOUNT (000) VALUE (000) - -------------------------------------------------------------------------------- CASH EQUIVALENTS (4.3%) Aim Liquid Assets Portfolio (B) $100,000 $ 100,000 ---------- Total Cash Equivalents (Cost $100,000) 100,000 ---------- REPURCHASE AGREEMENTS (27.7%) ABN AMRO 5.67%, dated 11/30/99, matures 12/01/99, repurchase price $190,071,326 (collateralized by various FNMA obligations: total market value $193,872,752) (C) 190,071 190,071 Barclays 5.67%, dated 11/30/99, matures 12/01/99, repurchase price $74,188,519 (collateralized by FHLB and FNMA obligations: total market value $75,673,018) (C) 74,189 74,189 Deutsche Bank 5.67%, dated 11/30/99, matures 12/01/99, repurchase price $148,114,469 (collateralized by FHLMC obligation: total market value $151,076,758) (C) 148,114 148,114 Greenwich 5.67%, dated 11/30/99, matures 12/01/99, repurchase price $47,083,530 (collateralized by various GNMA obligations: total market value $48,026,182) (C) 47,084 47,084 Merrill Lynch 5.67%, dated 11/30/99, matures 12/01/99, repurchase price $51,302,380 (collateralized by FHLB, FHLMC, and FNMA obligations: total market value $52,331,476) (C) 51,302 51,302 - -------------------------------------------------------------------------------- FACE AMOUNT (000) VALUE (000) - -------------------------------------------------------------------------------- REPURCHASE AGREEMENTS -- CONTINUED Morgan Stanley 5.67%, dated 11/30/99, matures 12/01/99, repurchase price $15,000,000 (collateralized by various FNMA obligations: total market value $15,846,074) (C) $ 15,000 $ 15,000 Salomon Brothers 5.67%, dated 11/30/99, matures 12/01/99, repurchase price $99,884,344 (collateralized by various FHLMC and FNMA obligations: total market value $101,882,030) (C) 99,885 99,885 Warburg 5.67%, dated 11/30/99, matures 12/01/99, repurchase price $26,148,282 (collateralized by various FNMA obligations: total market value $26,672,060) (C) 26,148 26,148 ---------- Total Repurchase Agreements (Cost $651,793) 651,793 ---------- Total Investments (99.4%) (Cost $2,337,737) 2,337,737 ---------- OTHER ASSETS AND LIABILITIES, NET (0.6%) 13,890 ---------- 5 STATEMENT OF NET ASSETS - -------------------------------------------------------------------------------- STI CLASSIC FUNDS NOVEMBER 30, 1999 CLASSIC INSTITUTIONAL CASH MANAGEMENT MONEY MARKET FUND--CONCLUDED - -------------------------------------------------------------------------------- VALUE (000) - -------------------------------------------------------------------------------- NET ASSETS: Fund shares of the Institutional Class (unlimited authorization --- no par value) based on 2,351,615,218 outstanding shares of beneficial interest $2,351,615 Undistributed net investment income 1 Accumulated net realized gain on investments 11 ---------- Total Net Assets (100.0%) $2,351,627 ========== Net Asset Value, Offering and Redemption Price Per Share -- Institutional Shares $1.00 ========== THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS. FOR DESCRIPTIONS OF ABBREVIATIONS, PLEASE SEE PAGE 11. 6 - -------------------------------------------------------------------------------- (UNAUDITED) CLASSIC INSTITUTIONAL U.S. GOVERNMENT SECURITIES MONEY MARKET FUND - -------------------------------------------------------------------------------- FACE AMOUNT (000) VALUE (000) - -------------------------------------------------------------------------------- U.S. GOVERNMENT AGENCY OBLIGATION (4.8%) SLMA (B) 5.625%, 12/16/99 $35,000 $ 35,000 -------- Total U.S. Government Agency Obligation (Cost $35,000) 35,000 -------- U.S. AGENCY MORTGAGE-BACKED OBLIGATIONS (67.3%) FHLB 4.966%, 02/25/00 30,000 29,994 5.739%, 03/03/00 30,000 30,000 5.160%, 03/08/00 30,000 29,996 5.125%, 05/19/00 20,000 19,993 FHLB (B) 5.760%, 01/13/00 40,000 40,000 5.710%, 09/22/00 40,000 39,991 5.880%, 10/13/00 30,000 30,000 FHLBDN 5.810%, 09/15/00 20,000 19,118 FNMA 4.970%, 04/12/00 20,000 19,996 5.940%, 05/05/00 25,000 24,996 5.120%, 05/26/00 10,000 9,993 5.460%, 06/21/00 30,000 29,993 5.785%, 07/07/00 20,000 19,333 FNMA (B) 5.730%, 09/29/00 50,000 49,988 5.695%, 11/06/00 25,000 24,979 FNMADN 5.485%, 08/11/00 20,000 19,232 5.900%, 10/06/00 20,000 19,037 FNMA, MTN (B) 5.433%, 11/22/00 30,000 29,977 -------- Total U.S. Agency Mortgage-Backed Obligations (Cost $486,616) 486,616 -------- - -------------------------------------------------------------------------------- FACE AMOUNT (000) VALUE (000) - -------------------------------------------------------------------------------- REPURCHASE AGREEMENTS (27.5%) ABN-AMRO 5.67%, dated 11/30/99, matures 12/01/99, repurchase price $28,684,782 (collateralized by various GNMA obligations: total market value $29,258,478) (C) $73,926 $ 73,926 Deutsche Bank 5.67%, dated 11/30/99, matures 12/01/99, repurchase price $73,925,874 (collateralized by a FHLMC obligation: total market value $75,404,392) (C) 28,685 28,685 CIBC 5.67%, dated 11/30/99, matures 12/01/99, repurchase price $25,108,887 (collateralized by FHLMC obligations: market value $25,611,065) (C) 25,109 25,109 Greenwich 5.67%, dated 11/30/99, matures 12/01/99, repurchase price $65,141,095 (collateralized by FHLMC obligations: total market value $66,447,257) (C) 65,141 65,141 JP Morgan 5.67%, dated 11/30/99, matures 12/01/99, repurchase price $6,000,000 (collateralized by FNMA obligations: total market value $6,120,001) (C) 6,000 6,000 -------- Total Repurchase Agreements (Cost $198,861) 198,861 -------- Total Investments (99.6%) (Cost $720,477) 720,477 -------- OTHER ASSETS AND LIABILITIES, NET (0.4%) 2,708 -------- 7 STATEMENT OF NET ASSETS - -------------------------------------------------------------------------------- STI CLASSIC FUNDS NOVEMBER 30, 1999 CLASSIC INSTITUTIONAL U.S. GOVERNMENT SECURITIES MONEY MARKET FUND--CONCLUDED - -------------------------------------------------------------------------------- VALUE (000) - -------------------------------------------------------------------------------- NET ASSETS: Fund shares of the Institutional Class (unlimited authorization -- no par value) based on 723,203,572 outstanding shares of beneficial interest $723,204 Undistributed net investment income 6 Accumulated net realized loss on investments (25) -------- Total Net Assets (100.0%) $723,185 ======== Net Asset Value, Offering and Redemption Price Per Share -- Institutional Shares $1.00 ======== THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS. FOR DESCRIPTIONS OF ABBREVIATIONS, PLEASE SEE PAGE 11. 8 - -------------------------------------------------------------------------------- (UNAUDITED) CLASSIC INSTITUTIONAL U.S. TREASURY SECURITIES MONEY MARKET FUND - -------------------------------------------------------------------------------- FACE AMOUNT (000) VALUE (000) - -------------------------------------------------------------------------------- U.S. TREASURY OBLIGATIONS (10.7%) U.S. Treasury Bill 5.085%, 02/24/00 $150,000 $ 148,174 U.S. Treasury Note 5.500%, 02/29/00 22,000 22,034 ---------- Total U.S. Treasury Obligations (Cost $170,208) 170,208 ---------- CASH EQUIVALENTS (8.8%) AIM Institutional Treasury Portfolio (B) 70,000 70,000 SEI Daily Income Trust Treasury II Portfolio (B) 70,000 70,000 ---------- Total Cash Equivalents (Cost $140,000) 140,000 ---------- REPURCHASE AGREEMENTS (80.8%) ABN-Amro 5.61%, dated 11/30/99, matures 12/01/99, repurchase price $372,185,483 (collateralized by a U.S. Treasury Note: total market value $379,629,269) (C) 372,185 372,186 Barclays 5.61%, dated 11/30/99, matures 12/01/99, repurchase price $70,136,843 (collateralized by U.S. Treasury Note: total market value $71,539,959) (C) 70,137 70,137 Duetsche Bank 5.61%, dated 11/30/99, matures 12/01/99, repurchase price $70,415,354 (collateralized by various U.S. Treasury Notes and U.S. Treasury Bonds: total market value $71,823,914) (C) 70,415 70,415 - -------------------------------------------------------------------------------- FACE AMOUNT (000) VALUE (000) - -------------------------------------------------------------------------------- REPURCHASE AGREEMENTS -- CONTINUED Greenwich 5.61%, dated 11/30/99, matures 12/01/99, repurchase price $70,294,497 (collateralized by U.S. Treasury Bond: total market value $71,704,723) (C) $70,294 $ 70,295 J.P. Morgan 5.61%, dated 11/30/99, matures 12/01/99, repurchase price $70,397,295 (collateralized by a U.S. Treasury Note: total market value $71,805,513) (C) 70,397 70,397 Merrill Lynch 5.61%, dated 11/30/99, matures 12/01/99, repurchase price $70,148,283 (collateralized by U.S. Treasury STRIPS: total market value $71,554,302) (C) 70,148 70,148 Morgan Stanley 5.61%, dated 11/30/99, matures 12/01/99, repurchase price $70,097,255 (collateralized by a U.S. Treasury Bond: total market value $71,862,427) (C) 70,097 70,097 Salomon Brothers 5.61%, dated 11/30/99, matures 12/01/99, repurchase price $69,973,584 (collateralized by U.S. Treasury Bond: total market value $71,535,014) (C) 69,974 69,974 SBC Warburg 5.61%, dated 11/30/99, matures 12/01/99, repurchase price $360,766,266 (collateralized by a U.S. Treasury Bond: total market value $367,982,373) (C) 360,766 360,766 9 STATEMENT OF NET ASSETS - -------------------------------------------------------------------------------- STI CLASSIC FUNDS NOVEMBER 30, 1999 CLASSIC INSTITUTIONAL U.S. TREASURY SECURITIES MONEY MARKET FUND--CONCLUDED - -------------------------------------------------------------------------------- FACE AMOUNT (000) VALUE (000) - -------------------------------------------------------------------------------- REPURCHASE AGREEMENT -- CONTINUED Goldman Sachs 5.40%, dated 11/30/99, matures 12/01/99, repurchase price $65,000,000 (collateralized by U.S. Treasury Bond: total market value $68,345,913) (C) $65,000 $ 65,000 ---------- Total Repurchase Agreement (Cost $1,289,415) 1,289,415 ---------- Total Investments (100.3%) (Cost $1,599,623) 1,599,623 ---------- OTHER ASSETS AND LIABILITIES, NET (-0.3%) (4,659) ---------- NET ASSETS: Fund shares of the Institutional Class (unlimited authorization -- no par value) based on 301,563,643 outstanding shares of beneficial interest 301,564 Fund shares of the Corporate Trust Class (unlimited authorization -- no par value) based on 1,293,366,984 outstanding shares of beneficial interest 1,293,367 Undistributed net investment income 2 Accumulated net realized gain on investments 31 ---------- Total Net Assets (100.0%) $1,594,964 ========== Net Asset Value, Offering and Redemption Price Per Share -- Institutional Shares $1.00 ========== Net Asset Value, Offering and Redemption Price Per Share -- Corporate Trust Shares $1.00 ========== THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS. FOR DESCRIPTIONS OF ABBREVIATIONS, PLEASE SEE PAGE 11. 10 - -------------------------------------------------------------------------------- (UNAUDITED) KEY TO ABBREVIATIONS USED IN THE STATEMENT OF NET ASSETS Cl Class FHLB Federal Home Loan Bank FHLBDN Federal Home Loan Bank Discount Note FHLMC Federal Home Loan Mortgage Corporation FNMA Federal National Mortgage Association FNMADN Federal National Mortgage Association Discount Note GNMA Government National Mortgage Association MBIA Security insured by the Municipal Bond Investors Assurance Corporation MTN Medium Term Note Ser Series SLMA Student Loan Marketing Association STRIPS Separately Traded Registered Interest and Principal Security (A) Private Placement Security (B) Adjustable Rate Security. The rate reported on the Statement of Net Assets is the rate in effect on November 30, 1999. The date shown is the next scheduled reset date. (C) Tri-Party Repurchase Agreement 11 This page intentionally left blank.
STATEMENTS OF OPERATIONS (000) - ------------------------------------------------------------------------------------------------------------------------------------ STI CLASSIC FUNDS FOR THE PERIOD ENDED NOVEMBER 30, 1999 (UNAUDITED) CLASSIC CLASSIC CLASSIC INSTITUTIONAL INSTITUTIONAL INSTITUTIONAL CASH MANAGEMENT U.S. GOVERNMENT U.S. TREASURY MONEY MARKET SECURITIES MONEY SECURITIES MONEY FUND MARKET FUND MARKET FUND ------------- --------------- --------------- 06/01/99- 06/01/99- 06/01/99- 11/30/99 11/30/99 11/30/99 -------- -------- -------- Income: Interest Income $55,293 $16,758 $32,762 ------- ------- ------- Expenses: Investment Advisory Fees 2,072 646 1,291 Investment Advisory Fees Waived/Reimbursed (331) (128) (206) Administrator Fees 734 229 458 Administrator Fees Waived (207) (43) (129) Transfer Agent Fees 17 16 6 Transfer Agent Out of Pocket Fees 93 29 58 Printing Fees 52 16 32 Custody Fees 41 7 26 Professional Fees 41 13 26 Trustee Fees 10 3 6 Registration Fees 41 15 26 Distribution Fees -- -- 1,036 Insurance and Other Fees 26 5 3 Amortization of Deferred Organizational Costs 1 -- 1 ------- ------- ------- Total Expenses 2,590 808 2,634 ------- ------- ------- Net Investment Income 52,703 15,950 30,128 ------- ------- ------- Net Realized Gain on Securities Sold -- -- 5 ------- ------- ------- Increase in Net Assets Resulting from Operations $52,703 $15,950 $30,133 ======= ======= =======
Amounts designated as "--" are either $0 or round to $0. THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS. 13
STATEMENTS OF CHANGES IN NET ASSETS (000) - ------------------------------------------------------------------------------------------------------------------------------------ STI CLASSIC FUNDS FOR THE PERIODS ENDED NOVEMBER 30, MAY 31, AND JANUARY 31, 1999 CLASSIC CLASSIC CLASSIC INSTITUTIONAL INSTITUTIONAL INSTITUTIONAL CASH MANAGEMENT U.S. GOVERNMENT U.S. TREASURY MONEY MARKET SECURITIES MONEY SECURITIES MONEY FUND MARKET FUND MARKET FUND ------------------------------- -------------------------------- --------------------------------- 06/01/99- 02/01/99- 02/01/98- 06/01/99- 02/01/99- 02/01/98- 06/01/99- 06/01/98- 11/30/99 05/31/99 01/31/99 11/30/99 05/31/99 01/31/99 11/30/99 05/31/99 --------- --------- --------- ---------- --------- ---------- --------- ---------- Operations: Net Investment Income $ 52,703 $ 15,177 $ 42,861 $ 15,950 $ 10,264 $ 34,235 $ 30,128 $ 10,844 Net Realized Gain on Investments -- 1 -- -- -- -- 5 25 ---------- ---------- --------- -------- --------- --------- --------- --------- Increase in Net Assets Resulting from Operations 52,703 15,178 42,861 15,950 10,264 34,235 30,133 10,869 ---------- ---------- --------- -------- --------- --------- --------- --------- Distributions to Shareholders: Net Investment Income: Trust Shares (52,700) (15,172) (42,874) (15,944) (10,249) (34,250) (6,140) (10,842) Corporate Trust Shares -- -- -- -- -- -- (23,990) -- ---------- ---------- --------- -------- --------- --------- --------- --------- Total Distributions (52,700) (15,172) (42,874) (15,944) (10,249) (34,250) (30,130) (10,842) ---------- ---------- --------- -------- --------- --------- --------- --------- Capital Transactions: Institutional Shares: Proceeds from Shares Issued 3,205,785 2,243,802 7,764,540 1,073,591 1,958,641 6,897,369 729,276 1,267,762 Shares Issued in Connection with Crestar Arbor Merger -- 1,072,229 -- -- -- -- -- -- Reinvestments of Cash Distributions 33,604 7,086 10,074 5,597 3,113 13,467 6,594 7,876 Cost of Shares Redeemed (2,776,248)(2,319,130)(7,630,948) (973,098)(2,032,711)(7,012,200) (717,801)(1,132,474) ---------- ---------- --------- -------- --------- --------- --------- --------- Increase (Decrease) in Net Assets from Institutional Share Transactions 463,141 1,003,987 143,666 106,090 (70,957) (101,364) 18,069 143,164 ---------- ---------- --------- -------- --------- --------- --------- --------- Corporate Trust Shares: Proceeds from Shares Issued -- -- -- -- -- -- 2,345,918 -- Cost of Shares Redeemed -- -- -- -- -- -- (1,052,551) -- ---------- ---------- --------- -------- --------- --------- --------- --------- Increase in Net Assets from Corporate Trust Share Transactions -- -- -- -- -- -- 1,293,367 -- ---------- ---------- --------- -------- --------- --------- --------- --------- THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.
14
STATEMENTS OF CHANGES IN NET ASSETS (000) - ------------------------------------------------------------------------------------------------------------------------------------ (UNAUDITED) CLASSIC CLASSIC CLASSIC INSTITUTIONAL INSTITUTIONAL INSTITUTIONAL CASH MANAGEMENT U.S. GOVERNMENT U.S. TREASURY MONEY MARKET SECURITIES MONEY SECURITIES MONEY FUND MARKET FUND MARKET FUND -------------------------------- ------------------------------ -------------------- 06/01/99- 02/01/99- 02/01/98- 06/01/99- 02/01/99- 02/01/98- 06/01/99- 06/01/98- 11/30/99 05/31/99 01/31/99 11/30/99 05/31/99 01/31/99 11/30/99 05/31/99 --------- --------- --------- --------- --------- --------- -------------------- Total Increase (Decrease) in Net Assets 463,144 1,003,993 143,653 106,096 (70,942) (101,379) 1,311,439 143,191 ---------- ---------- --------- --------- --------- --------- ---------- --------- Net Assets: Beginning of Period 1,888,483 884,490 740,837 617,089 688,031 789,410 283,525 140,334 ---------- ---------- --------- --------- --------- --------- ---------- --------- End of Period $2,351,627 $1,888,483 $ 884,490 $ 723,185 $ 617,089 $ 688,031 $1,594,964 $ 283,525 ========== ========== ========= ========= ========= ========= ========== ========= (1) Shares Issued and Redeemed: Institutional Shares: Shares Issued 3,205,785 2,243,802 7,764,540 1,073,591 1,958,641 6,897,369 729,276 1,267,762 Shares Issued in Connection with Crestar Arbor Merger -- 1,072,211 -- -- -- -- -- -- Shares Issued in Lieu of Cash Distributions 33,604 7,086 10,074 5,597 3,113 13,467 6,594 7,876 Shares Redeemed (2,776,248)(2,319,131)(7,630,948) (973,098)(2,032,711)(7,012,200) (717,801)(1,132,474) ---------- ---------- --------- --------- --------- --------- ---------- --------- Net Institutional Share Transactions 463,141 1,003,968 143,666 106,090 (70,957) (101,364) 18,069 143,164 ---------- ---------- --------- --------- --------- --------- ---------- --------- Corporate Trust Shares: Shares Issued -- -- -- -- -- -- 2,345,918 -- Shares Redeemed -- -- -- -- -- -- (1,052,551) -- ---------- ---------- --------- --------- --------- --------- ---------- --------- Net Corporate Trust Share Transactions -- -- -- -- -- -- 1,293,367 -- ---------- ---------- --------- --------- --------- --------- ---------- --------- Net Change in Capital Shares 463,141 1,003,968 143,666 106,090 (70,957) (101,364) 1,311,436 143,164 ========== ========== ========= ========= ========= ========= ========== =========
Amounts designated as "--" are either $0 or round to $0. THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS. 15 FINANCIAL HIGHLIGHTS - -------------------------------------------------------------------------------- STI CLASSIC FUNDS FOR THE PERIODS FROM INCEPTION THROUGH NOVEMBER 30, 1999 FOR A SHARE OUTSTANDING THROUGHOUT THE PERIOD
NET NET ASSET NET ASSETS NET ASSET VALUE INVESTMENT DISTRIBUTIONS FROM VALUE END TOTAL END OF BEGINNING OF PERIOD INCOME NET INVESTMENT INCOME OF PERIOD RETURN+ PERIOD (000) ------------------- ---------- --------------------- ----------- --------- ----------- CLASSIC INSTITUTIONAL CASH MANAGEMENT MONEY MARKET FUND (A) Institutional Shares 1999** $1.00 0.03 (0.03) $1.00 2.57% $2,351,627 1999* 1.00 0.02 (0.02) 1.00 1.58 1,888,483 For the years ended January 31: 1999 1.00 0.05 (0.05) 1.00 5.46 884,490 1998 1.00 0.06 (0.06) 1.00 5.66 740,837 1997 1.00 0.05 (0.05) 1.00 5.45 477,435 1996(B) 1.00 0.02 (0.02) 1.00 1.42 382,632 CLASSIC INSTITUTIONAL U.S. GOVERNMENT SECURITIES MONEY MARKET FUND (C) Institutional Shares 1999** $1.00 0.02 (0.02) $1.00 2.50% $ 723,185 1999* 1.00 0.02 (0.02) 1.00 1.56 617,089 For the years ended January 31: 1999 1.00 0.05 (0.05) 1.00 5.30 688,031 1998 1.00 0.05 (0.05) 1.00 5.52 789,410 1997 1.00 0.05 (0.05) 1.00 5.29 586,731 1996 1.00 0.06 (0.06) 1.00 5.88 514,870 1995(D) 1.00 0.03 (0.03) 1.00 4.98 579,422 CLASSIC INSTITUTIONAL U.S. TREASURY SECURITIES MONEY MARKET FUND Institutional Shares 1999** $1.00 0.02 (0.02) $1.00 2.43% $ 301,594 1999 1.00 0.05 (0.05) 1.00 4.97 283,525 1998 1.00 0.05 (0.05) 1.00 5.50 140,334 1997(E) 1.00 0.02 (0.02) 1.00 2.46 20,238 Corporate Trust Shares 1999**(F) $1.00 0.02 (0.02) $1.00 2.32% $1,293,370 (A) On May 17, 1999, the Arbor Prime Obligations Fund exchanged all of its assets and certain liabilities for shares of the Classic Institutional Cash Management Money Market Fund. The Arbor Prime Obligations Fund is the accounting survivor in this transaction, and as a result, its basis of accounting for assets and liabilities and its operating results for the periods prior to May 17, 1999 have been carried forward in these financial highlights. (B) Commenced operations on October 25, 1995. All ratios for the period have been annualized. (C) On May 24, 1999, the Arbor U.S. Government Securities Money Fund exchanged all of its assets and certain liabilities for shares of the Classic Institutional U.S. Government Securities Money Market Fund. The Arbor U.S. Government Securities Money Fund is the accounting survivor in this transaction, and as a result, its basis of accounting for assets and liabilities and its operating results for the periods prior to May 24, 1999 have been carried forward in these financial highlights.
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS. 16 ================================================================================ (UNAUDITED)
RATIO OF RATIO OF NET INVESTMENT RATIO OF EXPENSES TO INCOME TO RATIO OF NET INVESTMENT AVERAGE NET ASSETS AVERAGE NET ASSETS EXPENSES TO INCOME TO (EXCLUDING WAIVERS (EXCLUDING WAIVERS AVERAGE NET ASSETS AVERAGE NET ASSETS AND REIMBURSEMENTS) AND REIMBURSEMENTS) ------------------- -------------------- -------------------- ------------------ CLASSIC INSTITUTIONAL CASH MANAGEMENT MONEY MARKET FUND (A) Institutional Shares 1999** 0.25% 5.09% 0.30% 5.04% 1999* 0.25 4.79 0.35 4.69 For the years ended January 31: 1999 0.23 5.31 0.35 5.19 1998 0.20 5.52 0.36 5.36 1997 0.20 5.33 0.38 5.15 1996(B) 0.20 5.61 0.40 5.41 CLASSIC INSTITUTIONAL U.S. GOVERNMENT SECURITIES MONEY MARKET FUND (C) Institutional Shares 1999** 0.25% 4.93% 0.30% 4.88% 1999* 0.25 4.73 0.36 4.62 For the years ended January 31: 1999 0.23 5.18 0.36 5.05 1998 0.20 5.39 0.37 5.22 1997 0.20 5.17 0.37 5.00 1996 0.20 5.72 0.37 5.55 1995(D) 0.20 4.98 0.38 4.80 CLASSIC INSTITUTIONAL U.S. TREASURY SECURITIES MONEY MARKET FUND Institutional Shares 1999** 0.25% 4.81% 0.32% 4.74% 1999 0.20 4.83 0.47 4.56 1998 0.18 5.34 0.38 5.14 1997(E) 0.09 5.27 0.51 4.85 Corporate Trust Shares 1999**(F) 0.45% 4.60% 0.52% 4.53% (D) Commenced operations on August 1, 1994. All ratios for the period have been annualized. (E) Commenced operations on December 12, 1996. All ratios for the period have been annualized. (F) Commenced operations on June 3, 1999. All ratios for the period have been annualized. + Returns are for the period indicated and have not been annualized. * For the period February 1, 1999 to May 31, 1999. All ratios for the period have been annualized. ** For the six month period ended November 30, 1999. All ratios have been annualized.
Amounts designated as "--" are either $0 or round to $0. THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS. 17 NOTES TO FINANCIAL STATEMENTS ================================================================================ STI CLASSIC FUNDS NOVEMBER 30, 1999 1. Organization: The STI Classic Funds (the "Trust") was organized as a Massachusetts business trust under a Declaration of Trust dated January 15, 1992. The Trust is registered under the Investment Company Act of 1940, as amended, as an open-end management investment company with thirty-six portfolios as of November 30, 1999: the Balanced Fund, the Capital Appreciation Fund (formerly the Capital Growth Fund), the Emerging Markets Equity Fund, the Growth and Income Fund, the International Equity Fund, the International Equity Index Fund, the Life Vision Balanced Portfolio, the Life Vision Growth and Income Portfolio, the Life Vision Maximum Growth Portfolio, the Mid-Cap Equity Fund, the Small Cap Equity Fund, the Small Cap Growth Stock Fund, the Sunbelt Equity Fund, the Tax Sensitive Growth Stock Fund, the Value Income Stock Fund, the Core Equity Fund, the E-Commerce Opportunity Fund, (collectively the "Equity Funds"), the Florida Tax-Exempt Bond Fund, the Georgia Tax-Exempt Bond Fund, Investment Grade Bond Fund, the Investment Grade Tax-Exempt Bond Fund, the Limited-Term Federal Mortgage Securities Fund, the Maryland Municipal Bond Fund, the Short-Term Bond Fund, the Short-Term U.S. Treasury Securities Fund, and the U.S. Government Securities Fund, the Virginia Intermediate Municipal Bond Fund, the Virginia Municipal Bond Fund, (collectively the "Fixed Income Funds"), the Prime Quality Money Market Fund, the Tax-Exempt Money Market Fund, the Tax-Free Money Market Fund, the U.S. Government Securities, the U.S. Treasury Money Market Fund (collectively the "Retail Money Market Funds"), the Classic Institutional Cash Management Money Market Fund, the Classic Institutional U.S. Government Securities Money Market Fund and the Classic Institutional U.S. Treasury Securities Money Market Fund, (collectively the "Institutional Money Market Funds" or the "Funds"). The assets of each portfolio are segregated, and a shareholder's interest is limited to the fund in which shares are held. Each fund's prospectus provides a description of the fund's investment objectives, policies and strategies. The financial statements presented herein are those of the Institutional Money Market Funds. The financial statements of the Equity Funds, the Fixed Income Funds and the Retail Money Market Funds are not presented herein, but are presented separately. On February 17, 1999 and February 19, 1999, respectively, the Board of Trustees of the STI Classic Funds and Board of Trustees of the Arbor Funds approved an Agreement and Plan of Reorganization (the "Reorganization Agreement") providing for the transfer of all assets and certain stated liabilities of the Arbor Funds in exchange for the issuance of shares in the Funds in a tax-free reorganization (see Note 7). 2. Significant Accounting Policies: The following is a summary of significant accounting policies followed by the Trust: BASIS OF PRESENTATION OF STATEMENTS -- As more fully described in Note 7, the STI Classic Funds acquired certain Arbor Funds in a tax-free business combination. While each Fund now exists as a STI Classic Fund, both the surviving funds for accounting purposes are Arbor Funds. In accordance with generally accepted accounting principles, the financial statements presented herein represent those of accounting survivors. Accordingly, the Statements of Changes in Net Assets and Financial Highlights presented reflect periods beginning on the first day of the accounting survivor's fiscal year. SECURITY VALUATION -- Investment securities held by the Funds are stated a amortized cost, which approximates market value. 18 ================================================================================ (UNAUDITED) FEDERAL INCOME TAXES -- It is each Fund's intention to qualify as a regulated investment company for Federal income tax purposes and distribute all of its taxable income and net capital gains. Accordingly, no provisions for Federal income taxes are required. SECURITY TRANSACTIONS AND INVESTMENT INCOME -- Security transactions are accounted for on the date the security is purchased or sold (trade date). Interest income is recognized on an accrual basis. Costs used in determining net realized gains and losses on the sales of investment securities are those of the specific securities sold adjusted for the accretion and amortization of purchase discounts and premiums during the respective holding period. Purchase discounts and premiums on securities held by the Funds are accreted and amortized ratably to maturity and are included in interest income. REPURCHASE AGREEMENTS -- Securities pledged as collateral for repurchase agreements are held by the custodian bank until the respective agreements mature. Provisions of the repurchase agreements ensure that the market value of the collateral, including accrued interest thereon, is sufficient in the event of default of the counterparty. If the counterparty defaults and the value of the collateral declines or if the counterparty enters into an insolvency proceeding, realization of the collateral by the Funds may be delayed or limited. NET ASSET VALUE PER SHARE -- The net asset value per share of each Fund is calculated each business day, by dividing the total value of each Fund's assets, less liabilities, by the number of shares outstanding. OTHER -- Expenses that are directly related to a specific Fund are charged to that Fund. Class specific expenses are borne by that class. Other operating expenses of the Trust are pro-rated to the Funds on the basis of relative net assets. Fund expenses are pro-rated to the respective classes on the basis of relative net assets. Distributions from net investment income of each of the Funds are declared on each business day and paid to shareholders on a monthly basis. Any net realized capital gains on sales of securities are distributed to shareholders at least annually. USE OF ESTIMATES -- The preparation of the financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that effect the reported amount of assets and liabilities, disclosure of contingent assets and liabilities at the date of the financial statements, and reported amounts of revenues and expenses during the reporting period. Actual amounts could differ from these estimates. 3. Organization Costs and Transactions with Affiliates: In April 1998, the AICPA issued Statement of Position (SOP) No. 98-5, "Reporting on the Costs of Start-Up Activities." This SOP provides guidance on the financial reporting of start-up costs and organization costs and requires costs of start-up activities and organization costs to be expensed as incurred. Investment companies that began operations prior to June 30, 1998 can adopt the SOP prospectively. Therefore, previously capitalized organization costs will continue to be amortized over a period of sixty months. Any future start-up or organization costs will be expensed as incurred. 19 NOTES TO FINANCIAL STATEMENTS (concluded) ================================================================================ STI CLASSIC FUNDS NOVEMBER 30, 1999 Certain officers of the Trust are also officers of SEI Investments Mutual Funds Services ("the Administrator") and/or SEI Investments Distribution Co. (the "Distributor"). Such officers are paid no fees by the Trust for serving as officers of the Trust. The Fund has entered into an agreement with SEIInvestments to manage the investments of repurchase agreements for the Funds. For its services the Liquidity Desk received $905,023 for the year ended November 30, 1999. 4. Administration and Transfer Agency Servicing Agreements: The Trust and the Administrator are parties to an Administration Agreement dated May 29, 1995, as amended November 19, 1997 and March 1, 1999, under which the Administrator provides administrative services for an annual fee (expressed as a percentage of the combined average daily net assets of the Trust and STI Classic Variable Trust) of: .12% up to $1 billion, .09% on the next $4 billion, .07% on the next $3 billion, .065% on the next $2 billion and .06% for over $10 billion. Prior to May 24, 1999, and May 17, 1999, administrative and accounting services were provided to the Arbor U.S. Government Securities Money Fund and Arbor Prime Obligations Fund by SEI Investments Mutual Funds Services who was entitled to receive a fee at an annual rate of .08% of the average daily net assets of these funds. A portion of these fees were voluntarily waived. The Trust and Federated Services Company are parties to a Transfer Agency servicing agreement dated May 14, 1994 under which Federated Services Company provides transfer agency services to the Trust. 5. Investment Advisory and Custodian Agreements: The Trust and Trusco Capital Management, Inc. (the "Investment Advisor") have entered into an advisory agreement dated July 15, 1993. Under terms of the respective agreements, the Funds are charged the following annual fees based upon average daily net assets: MAXIMUM INSTITUTIONAL CORPORATE ANNUAL SHARE TRUST SHARE ADVISORY MAXIMUM MAXIMUM FEE EXPENSE EXPENSE ------- ------------ ---------- Classic Institutional Cash Management Money Market Fund .20% .25% -- Classic Institutional U.S. Government Securities Money Market Fund .20% .25% -- Classic Institutional U.S. Treasury Money Market Fund .20% .25% .45% The Investment Advisor and the Administrator have voluntarily agreed to waive all or a portion of their fees (and to reimburse Funds' expenses) in order to limit operating expenses to an amount as outlined in the table above. Fee waivers and expense reimbursements are voluntary and may be terminated at any time. Prior to May 24, 1999, and May 17, 1999, Crestar Asset Management Company ("CAMCO") provided Investment Advisory services to certain Arbor Funds. CAMCO was paid for advisory services to each Fund at an annual rate of .10% and .11% of the average daily net assets for Arbor U.S. Government Securities Money and Arbor Prime Obligations Funds, respectively. SunTrust Bank, Atlanta, acts as custodian for the Funds. Fees of the Custodian are paid on the basis of the net assets of the Funds. The Custodian plays no role in determining the investment policies of the Trust or which securities are to be purchased or sold in the Funds. 20 ================================================================================ (UNAUDITED) 6. Concentration of Credit Risk: The Classic Institutional Cash Management Money Market Fund invests in high quality money market instruments issued by corporations and the U.S. Government and rated by one or more nationally recognized statistical rating organizations, or, if not rated determined by the Advisor to be of comparable quality. The Classic Institutional U.S. Government Securities Money Market Fund invests in U.S. Treasury obligations, U.S. Government subsidiary corporation securities which are backed by the full faith and credit of the U.S. government and repurchase agreements with approved dealers collateralized by U.S. Treasury securities and U.S. Government subsidiary corporation securities. The Classic Institutional U.S. Treasury Securities Money Market Fund invests in U.S. Treasury Obligations, which are backed by the full faith and credit of the U.S. Government and repurchase agreements with approved dealers collateralized by U.S. Treasury securities. 7. Arbor Funds Merger: The Board of Trustees and shareholders of certain of the Arbor Funds approved a reorganization of certain of the Arbor Funds into the STI Classic Funds which took place at the close of business on May 17, 1999 for the Arbor Prime Obligations Fund and May 24, 1999 for the Arbor U.S. Government Securities Money Fund. The following table summarizes certain relevant information of the funds prior to and immediately after the business combinations on May 17, 1999 and May 24, 1999 and is unaudited:
SHARES OUTSTANDING SHARES ISSUED NET ASSETS NAV ON MERGER IN BUSINESS AFTER PER ARBOR FUND DATE STI CLASSIC FUND COMBINATION COMBINATION SHARE ------------------------- ----------- ------------------ ------------- ----------- -------- U.S. Government Securities 684,672,707 Classic Institutional U.S. Government 684,672,707 684,647,218 $1.00 Money Fund (1) Securities Money Market Fund Prime Obligations Fund (1) 711,747,295 Classic Institutional Cash Management 711,747,295 1,783,974,148 1.00 Money Market Fund
(1) Represents the accounting survivor in this business combination. 21 INVESTMENT ADVISOR Trusco Capital Management, Inc. STI Classic Funds are not deposits, are not insured or guaranteed by the FDIC or any other government agency, and are not endorsed by and do not constitute obligations of SunTrust Banks, Inc. or any other of its affiliates. Investment in the Funds involves risk, including the possible loss of principal. There is no guarantee that any STI Classic Fund will achieve its investment objective. The STI Classic Funds are advised by affiliates of SunTrust Banks, Inc. DISTRIBUTOR SEI Investments Distribution Co. This information must be preceded or accompanied by a current prospectus for each Fund described. -----END PRIVACY-ENHANCED MESSAGE-----