N-30D 1 0001.txt STI CLASSIC RETAIL 5/31/00 ANNUAL ................................................................................ FINANCIAL REPORT ................................................................................ STI CLASSIC FUNDS ................................................................................ A Family of Mutual Funds ................................................................................ PRIME QUALITY MONEY MARKET FUND TAX-EXEMPT MONEY MARKET FUND TAX-FREE MONEY MARKET FUND U.S. GOVERNMENT SECURITIES MONEY MARKET FUND U.S. TREASURY MONEY MARKET FUND May 31, 2000 (LOGO) [GRAPHIC OMITTED] Dear Valued STI Classic Trust Shareholder: The period corresponding to the STI Classic Funds' fiscal year ending May 31, 2000 is perhaps one of the most unusual in the history of modern financial markets. The U.S. economy continued on its growth path, extending the longest period of uninterrupted expansion. In fact, economic growth actually accelerated, prompting the Federal Reserve (the "Fed") to announce a series of rate increases. The capital markets responded by rewarding risk in equity securities and punishing it in fixed income markets. On the equity side, technology stocks were prominent, as evidenced by the 37.7% rise in the NASDAQ Composite Index and even greater 59.1% appreciation in the larger stocks of the NASDAQ 100 Index. Small cap stocks did well, predominantly because of technology and biotechnology stocks; the S&P 600 Small Cap Index rose 14.2%. Mid-cap stocks did even better, with the S&P 400 Mid-Cap Index up 21.5%, but again due to technology. Overall, many stocks did not do well as Fed tightening weighed heavily on performance. The broader S&P 500 Composite Index was up a more modest 10.5%, while the Dow Jones Industrial Average only achieved a 1.2% positive return. Within style categories, growth stocks enjoyed a record advantage over value stocks, a condition which began to reverse only in the last three months of the STI Classic Funds fiscal year. On the fixed income side, total returns in bonds were modest, as typified by the 1.9% gain in the Lehman U.S. Government/Corporate Bond Index for longer term taxable bonds, the 3.5% return in the Merrill Lynch 1-5 Year U.S. Corporate/ Government Index, and very modest returns in short to intermediate-term municipal bonds. Within the bond arena, investment grade and high yield bonds were under pressure, while top quality Government bonds prospered. To repeat, there was a disconnect between risk/reward as equity investors were very positive and bond investors were negative. As the new fiscal year begins for the STI Classic Fund family, we are encouraged by the broadening out of the equity market. Technology stocks have recently corrected significantly and small and mid-caps have done better. Importantly, value oriented stocks outperformed in March/April/May. Tight Fed policy and rising money market rates due to rapid economic growth are not good for stocks. Thus, recent signs of slower economic growth are welcome and stocks will do better once the Fed suspends its tight monetary stance. We also believe the very wide yield spreads available in non-Government fixed income securities will prove rewarding over the next 12-24 months. The STI Classic Funds have never been stronger in terms of product breadth and potential for long-term growth. We thank all Fund shareholders for their confidence in the STI Classic Family. We will work hard to deliver competitive results in the months and years ahead. Sincerely /S/signature omitted Douglas S. Phillips President and Chief Investment Officer Trusco Capital Management, Inc. 1 STI CLASSIC PRIME QUALITY MONEY MARKET FUND ------------------------------------------- The investment objective of the STI Classic Prime Quality Money Market Fund (the "Fund") is to provide as high a level of current income as is consistent with the preservation of capital and liquidity by investing exclusively in high quality money market instruments. The investment discipline, which we use in managing the Fund, emphasizes adding incremental value through yield curve, sector and credit analysis. Investments are made in those sectors, credits, and segments of the yield curve within the universe of money market eligible securities, which offer the most attractive risk/reward trade-off and current yield. The maturity structure and average maturity of the Fund are actively managed to maximize the yield of the Fund based on the current market rates and conditions and our market outlook. The Federal Reserve raised the Federal Funds rate six times and a total of 1.75% during the Fund's fiscal year ending May 31, 2000. The Fed Funds rate increases led to a similar increase in the yields for short-term money market securities and money market funds. The Fund shifted to a below average maturity and increased its holdings of floating rate securities during the year ending May 31, 2000. This strategy, along with good security selection allowed the Fund to maximize its yield during the rising rate environment, which led to a very competitive return as compared to its peer money market funds. The Fund (Trust Shares) had a one year return of 5.20% for the year ending May 31, 2000. The Fund's peer group return, as measured by the iMoneyNet, Inc. First Tier Money Fund Average, was 5.01% for the same period. /s/signature omitted David S. Yealy Vice President STI CLASSIC TAX-EXEMPT MONEY MARKET FUND ------------------------------------------- The STI Classic Tax-Exempt Money Market Fund (the "Fund") seeks to provide as high a level of current interest income exempt from regular federal income tax as is consistent with preserving capital and liquidity. The Fund invests in high quality, U.S. dollar-denominated municipal securities of issuers located in all fifty states, the District of Columbia, and Puerto Rico. During most of this period, the Fund maintained a shorter average maturity to take advantage of higher interest rates. We continue to look for opportunities to extend when market conditions are advantageous in order to maximize the yield of the Fund. /s/signature omitted Mary F. Cernilli Vice President 2 STI CLASSIC TAX-FREE MONEY MARKET FUND ------------------------------------------- The STI Classic Tax-Free Money Market Fund ("the Fund") celebrates its first anniversary in the STI Classic family of mutual funds. We are pleased to be a part of diversified group of funds offering equity, bond, and money market funds in a variety of investment styles aimed at helping our clients achieve their investment goals. The Fund strives to maximize tax-free investment income for Virginia residents, while maintaining a stable asset value of $1/share. Our security selection process for this fund emphasizes high quality and high liquidity municipal issuers. This fund is intended for clients seeking capital preservation, or those who wish to improve their tax-exempt income on idle balances. This investment style, and the Fund in particular, performed well in the year ended May 31, 2000. The domestic economy continued to show robust growth, with the length of the current expansion reached an all-time record by February. Consumer spending remained high, while industrial and manufacturing activity rebounded with the improved growth in the global economy. The unemployment rate reached a 30-year low, while consumer optimism reached new highs. In an environment of strong growth and increased economic pressures, the Federal Reserve (the "Fed") intervened to raise short-term interest rates in an attempt to cool the economy and head off rising inflation risks. The initial moves to restrain the economy were gradual 0.25% increases. However, as the pace of the economy showed few signs of slowing, the Fed decided to take a more aggressive stance in May, raising the overnight federal funds rate by 0.50%. This brought the cumulative of the six interest rate increases to 1.75% over the past year. Our strategy in this increasingly restrictive environment was to keep the average maturity of the portfolio relatively short and highly liquid so that the fund's yield would move higher as the Fed raised interest rates. We believe this strategy was successful and benefited our shareholders. Looking ahead, we see increasing signs that the economy will slow under the weight of the Fed interest rate hikes. As the pace of the expansion slows to a more sustainable level, the need for higher interest rates should diminish, representing an opportunity to lock in high current yields. Again, we thank you for investing in the STI Classic Tax-Free Money Market Fund, and we look forward to serving your investment needs in the year ahead. /s/signature omitted Robert S. Bowman, CFA Vice President 3 STI CLASSIC U.S. GOVERNMENT SECURITIES MONEY MARKET FUND -------------------------------------------------------- The investment objective of the STI Classic U.S. Government Securities Money Market Fund (the "Fund") is to provide as high a level of current income as is consistent with the preservation of capital and liquidity by investing exclusively in eligible money market securities. Eligible securities include U.S. Treasury securities, U.S. Government Subsidiary Corporation securities that are backed by the full faith and credit of the U.S. Government, and repurchase agreements ("repos") collateralized by U.S. Treasury obligations and U.S. Government Subsidiary Corporation securities. The investment discipline, which is used in managing the Fund, emphasizes adding incremental value through yield curve analysis. The maturity structure and average maturity of the Fund are actively managed to maximize the yield of the Fund over time based on the current market rates and conditions and our market outlook. The Federal Reserve raised the Federal Funds Rate six times and a total of 1.75% during the Fund's fiscal year ending May 31, 2000. The Fed Funds rate increases led to a similar increase in the yields for short-term money market securities and money market funds. The Fund was able to provide a competitive return as compared to its peer money market funds during the year ending May 31, 2000 by maintaining a shorter than average maturity with the majority of the Fund's assets invested in extremely short securities that increased in rates in line with the Fed Funds rate increases. /s/signature omitted David S. Yealy Vice President 4 STI CLASSIC U.S. TREASURY MONEY MARKET FUND ------------------------------------------- The STI Classic U.S. Treasury Money Market Fund ("the Fund") celebrates its first anniversary in the STI Classic family of mutual funds. We are pleased to be a part of diversified group of funds offering equity, bond, and money market funds in a variety of investment styles aimed at helping our clients achieve their investment goals. The Fund strives to maximize taxable investment income, while maintaining a stable asset value of $1/share. The Fund invests solely in short-term U.S. Treasury securities and repurchase agreements backed by U.S. Treasury Securities. This Fund is intended for clients seeking capital preservation, or those who wish to improve their taxable income on idle balances. This investment style, and the Fund in particular, performed well in the year ended May 31, 2000. The domestic economy continued to show robust growth, with the length of the current expansion reached an all-time record by February. Consumer spending remained high, while industrial and manufacturing activity rebounded with the improved growth in the global economy. The unemployment rate reached a 30-year low, while consumer optimism reached new highs. In an environment of strong growth and increased economic pressures, the Federal Reserve ("the Fed") intervened to raise short-term interest rates in an attempt to cool the economy and head off rising inflation risks. The initial moves to restrain the economy were gradual 0.25% increases. However, as the pace of the economy showed few signs of slowing, the Fed decided to take a more aggressive stance in May, raising the overnight federal funds rate by 0.50%. This brought the cumulative of the six interest rate increases to 1.75% over the past year. Our strategy in this increasingly restrictive environment was to keep the average maturity of the portfolio relatively short and highly liquid so that the Fund's yield would move higher as the Fed raised interest rates. We believe this strategy was successful and benefited our shareholders. Looking ahead, we see increasing signs that the economy will slow under the weight of the Fed interest rate hikes. As the pace of the expansion slows to a more sustainable level, the need for higher interest rates should diminish, representing an opportunity to lock in high current yields. Again, we thank you for investing in the STI Classic U.S. Treasury Money Market Fund, and we look forward to serving your investment needs in the year ahead. /s/signature omitted Robert S. Bowman, CFA Vice President 5 STATEMENT OF NET ASSETS ------------------------------------------------------------------------------ STI CLASSIC FUNDS MAY 31, 2000 PRIME QUALITY MONEY MARKET FUND ------------------------------------------------------------------------------- FACE AMOUNT (000) VALUE (000) ------------------------------------------------------------------------------- COMMERCIAL PAPER (30.4%) AEROSPACE/DEFENSE EQUIPMENT (0.2%) United Technologies 6.350%, 06/01/00 $ 10,000 $ 10,000 --------- ELECTRIC PRODUCTS (0.6%) Emerson Electric 6.770%, 06/01/00 27,000 27,000 --------- FINANCIAL SERVICES (16.3%) American Express 6.750%, 06/02/00 9,222 9,220 Associates First Capital 6.770%, 06/01/00 170,000 170,000 Bell Atlantic Funding 6.400%, 06/13/00 11,300 11,276 Bell Atlantic Net Funding 6.400%, 06/14/00 30,000 29,931 6.440%, 06/20/00 21,500 21,427 BellSouth Capital 6.800%, 06/01/00 12,000 12,000 Cargill Global 6.790%, 06/01/00 36,610 36,610 KFW International Finance 6.750%, 06/02/00 2,550 2,550 Paccar Financial 6.390%, 06/02/00 4,140 4,139 Progress Capital 6.520%, 06/05/00 13,400 13,390 6.550%, 06/08/00 29,300 29,263 6.550%, 06/08/00 6,400 6,392 6.530%, 06/15/00 12,800 12,768 6.570%, 06/22/00 16,600 16,536 Prudential Funding 6.790%, 06/01/00 175,000 175,000 Teco Finance 6.370%, 06/12/00 60,000 59,883 6.490%, 06/21/00 18,750 18,682 -------------------------------------------------------------------------------- FACE AMOUNT (000) VALUE (000) -------------------------------------------------------------------------------- FINANCIAL SERVICES--CONTINUED UBS Finance 6.790%, 06/01/00 $125,000 $ 125,000 --------- 754,067 --------- HOUSEHOLD PRODUCTS (0.1%) Procter & Gamble 6.400%, 06/01/00 4,000 4,000 6.400%, 06/02/00 2,000 2,000 --------- 6,000 --------- INSURANCE (0.8%) Allstate 6.770%, 06/01/00 35,000 35,000 --------- INVESTMENT BANKERS/BROKER DEALERS (3.9%) Deutsche Bank 6.350%, 06/01/00 1,500 1,500 6.370%, 06/07/00 10,486 10,475 6.500%, 06/09/00 20,000 19,971 Merrill Lynch 6.520%, 06/13/00 4,000 3,991 Morgan Stanley Dean Witter 6.780%, 06/01/00 70,000 70,000 6.880%, 08/24/00 (C) 75,000 75,000 --------- 180,937 --------- LEASING EQUIPMENT (0.5%) Pitney Bowes 6.750%, 06/01/00 24,700 24,700 --------- RETAIL (3.9%) Albertson's 6.500%, 06/05/00 19,000 18,986 American Greetings 6.340%, 06/06/00 20,000 19,982 Eastman Kodak 6.350%, 06/05/00 2,627 2,625 6 -------------------------------------------------------------------------------- FACE AMOUNT (000 VALUE (000) ------------------------------------------------------------------------------- RETAIL--CONTINUED Fortune Brands 6.770%, 06/01/00 $ 22,800 $ 22,800 6.400%, 06/08/00 42,000 41,948 Gap 6.550%, 06/26/00 3,100 3,086 Wal-Mart 6.450%, 06/05/00 70,000 69,950 --------- 179,377 --------- TELEPHONE & TELECOMMUNICATIONS (0.2%) BellSouth Telecomm 6.340%, 06/01/00 7,100 7,100 SBC Communications 6.420%, 06/14/00 400 399 --------- 7,499 --------- UTILITIES (3.9%) Consolidated Edison 6.780%, 06/01/00 27,000 27,000 Edison International 6.520%, 06/16/00 29,000 28,921 6.520%, 06/22/00 17,000 16,935 Georgia Power 6.400%, 06/05/00 17,646 17,633 Kansas City P&L 6.420%, 06/12/00 10,700 10,679 Pacific Gas & Electric 6.550%, 06/07/00 2,780 2,777 South Carolina Electric & Gas 6.530%, 06/21/00 12,450 12,405 Southern California Edison 6.520%, 06/22/00 12,000 11,954 Tampa Electric 6.760%, 06/01/00 51,400 51,400 --------- 179,704 --------- Total Commercial Paper (Cost $1,404,284) 1,404,284 --------- ------------------------------------------------------------------------------- FACE AMOUNT (000) VALUE (000) ------------------------------------------------------------------------------- CORPORATE OBLIGATIONS (47.5%) BANKS (15.6%) Amsouth Bank (C) 6.659%, 06/22/00 $ 50,000 $ 49,995 6.900%, 07/25/00 50,000 49,990 Bank One, MTN (C) 6.200%, 06/13/00 40,000 39,995 6.241%, 06/23/00 33,945 33,944 6.781%, 08/18/00 500 500 Bankers Trust, MTN (C) 6.240%, 06/16/00 2,400 2,401 Beneficial, MTN (C) 6.181%, 06/01/00 40,000 40,000 Branch Banking & Trust (C) 6.830%, 06/09/00 50,000 49,981 7.030%, 06/15/00 25,000 24,994 6.880%, 08/01/00 65,000 64,978 Comerica Bank (C) 6.563%, 08/30/00 121,000 121,000 Fleet Boston, MTN (C) 6.445%, 07/28/00 40,000 39,999 Fleet National Bank (C) 7.010%, 07/28/00 5,000 5,004 Huntington National Bank (C) 6.360%, 07/21/00 80,000 80,003 Key Bank (C) 7.010%, 07/26/00 20,000 20,016 Keycorp, Ser C, MTN (C) 6.641%, 06/23/00 5,000 5,001 Keycorp, MTN (C) 6.833%, 08/07/00 2,000 2,001 PNC Bank (C) 6.445%, 06/12/00 90,000 89,989 Wachovia Bank (C) 6.255%, 06/28/00 1,500 1,500 --------- 721,291 --------- 7 STATEMENT OF NET ASSETS ------------------------------------------------------------------------------- STI CLASSIC FUNDS MAY 31, 2000 PRIME QUALITY MONEY MARKET FUND--CONTINUED ------------------------------------------------------------------------------- FACE AMOUNT (000) VALUE (000) ------------------------------------------------------------------------------- ENTERTAINMENT (1.4%) Walt Disney 6.375%, 03/30/01 $ 17,325 $ 17,266 Walt Disney (A) 4.200%, 03/15/01 50,000 49,050 --------- 66,316 --------- FINANCE (16.4%) American Express Centurion (C) 6.730%, 06/19/00 1,000 1,000 6.720%, 06/08/00 35,000 35,000 American General Financial, MTN 5.840%, 01/29/01 6,000 5,961 Associates (A) 6.450%, 09/15/00 5,290 5,288 AT&T Capital, MTN 6.875%, 01/16/01 3,700 3,700 AT&T Capital, MTN (C) 7.594%, 06/14/00 50,000 50,025 6.971%, 07/07/00 30,000 30,103 Bell Atlantic Network Funding 6.550%, 06/27/00 45,000 45,000 Beta Finance (C) 6.430%, 07/25/00 50,000 49,998 Beta Finance, MTN (C) 6.418%, 07/05/00 25,000 25,000 Beta Finance, MTN (A) 6.800%, 02/15/01 25,000 25,000 Caterpillar Finance, MTN (C) 6.680%, 06/26/00 25,000 24,997 6.818%, 07/10/00 18,000 18,000 Caterpillar Financial Services, MTN (C) 6.281%, 07/17/00 2,000 2,000 Chrysler Financial 5.875%, 02/07/01 1,000 994 Chrysler Financial, MTN 6.080%, 03/09/01 5,000 4,959 -------------------------------------------------------------------------------- FACE AMOUNT (000) VALUE (000) -------------------------------------------------------------------------------- FINANCE--CONTINUED Diageo Capital PLC 6.815%, 08/24/00 $ 80,000 $ 80,001 Ford Motor Credit 5.750%, 01/25/01 1,500 1,489 Ford Motor Credit, MTN (C) 6.870%, 08/07/00 5,000 5,000 GMAC, MTN 7.500%, 06/09/00 1,650 1,651 GMAC, MTN (C) 6.390%, 07/24/00 3,000 3,002 GMAC, MTN 6.800%, 05/22/01 3,250 3,240 GMAC, MTN (C) 6.960%, 08/23/00 2,000 2,002 6.375%, 07/31/00 2,500 2,500 GTE California 5.625%, 02/01/01 13,000 12,881 Household Finance, MTN (C) 7.050%, 06/14/00 50,000 49,991 Paccar Financial, MTN (C) 6.219%, 06/05/00 20,000 20,010 Sigma Finance, MTN (A) (C) 6.440%, 08/01/00 50,000 50,000 Sigma Finance, MTN 6.970%, 04/03/01 50,000 50,000 Toyota Motor Credit, MTN (C) 6.460%, 07/25/00 50,000 50,028 6.523%, 08/30/00 100,000 100,000 --------- 758,820 --------- FOOD, BEVERAGE & TOBACCO (2.4%) Sara Lee 6.180%, 06/01/00 11,000 11,000 6.420%, 06/08/00 50,000 50,000 6.550%, 06/19/00 50,000 50,000 --------- 111,000 --------- REGIONAL GOVERNMENT AGENCY (0.0%) Quebec Providence, MTN (C) 8.690%, 02/22/01 1,000 1,012 --------- 8 ------------------------------------------------------------------------------- FACE AMOUNT (000) VALUE (000) ------------------------------------------------------------------------------- INVESTMENT BANKERS/BROKER DEALERS (7.4%) Bear Stearns (C) 6.710%, 06/26/00 $ 15,000 $ 14,996 Bear Stearns, Euro MTN, (C) 6.765%, 06/30/00 21,600 21,621 Bear Stearns, MTN, (C) 6.275%, 06/07/00 2,500 2,502 6.714%, 06/19/00 13,000 13,005 Bear Stearns, MTN, (C) 6.398%, 06/02/00 12,450 12,465 Bear Stearns, Ser B, MTN (C) 6.331%, 07/10/00 5,450 5,448 6.380%, 06/15/00 5,000 5,001 7.223%, 07/05/00 50,000 50,000 Credit Suisse First Boston Guernsey, MTN (C) 6.980%, 07/03/00 40,000 40,006 Goldman Sachs Group, MTN (C) 7.060%, 08/23/00 50,000 50,000 JP Morgan, MTN (C) 6.530%, 03/16/01 50,000 50,000 Merrill Lynch 6.500%, 04/01/01 3,438 3,426 Merrill Lynch, MTN (C) 5.920%, 06/07/00 50,000 49,996 Morgan Stanley Dean Witter, MTN 6.890%, 06/16/00 (C) 5,000 5,000 5.625%, 02/28/01 20,000 19,821 --------- 343,287 --------- LEASING EQUIPMENT (2.2%) International Lease Finance 6.520%, 06/02/00 56,500 56,500 5.875%, 01/15/01 23,000 22,836 ------------------------------------------------------------------------------- FACE AMOUNT (000) VALUE (000) ------------------------------------------------------------------------------- LEASING EQUIPMENT--CONTINUED Xerox, MTN (C) 6.633%, 08/08/00 $ 20,000 $ 19,996 --------- 99,332 --------- TELEPHONE & TELECOMMUNICATIONS (2.1%) AT&T (C) 6.683%, 08/07/00 71,000 71,000 AT&T, MTN (C) 6.900%, 06/21/00 26,875 26,982 --------- 97,982 --------- Total Corporate Obligations (Cost $2,199,040) 2,199,040 --------- ASSET BACKED SECURITIES (0.6%) Navistar Financial Owner Trust, Ser 2000-A, Cl A1 (C) 6.080%, 03/15/01 3,427 3,426 Nissan Auto Receivables Owner Trust, Ser 2000-A, Cl A1 6.125%, 02/15/01 19,905 19,904 Union Acceptance, Ser 2000-A, Cl A1 5.993%, 02/08/01 2,809 2,809 --------- Total Asset Backed Securities (Cost $26,139) 26,139 --------- BANK NOTES (1.0%) Fleet National Bank (C) 6.318%, 07/26/00 40,000 39,994 Key Bank (C) 6.331%, 07/17/00 8,000 8,001 --------- Total Bank Notes (Cost $47,995) 47,995 --------- CERTIFICATES OF DEPOSIT (1.3%) Bank of America (C) 6.100%, 06/12/00 8,000 8,000 9 STATEMENT OF NET ASSETS ------------------------------------------------------------------------------- STI CLASSIC FUNDS MAY 31, 2000 PRIME QUALITY MONEY MARKET FUND--CONCLUDED ------------------------------------------------------------------------------- FACE AMOUNT (000) VALUE (000) ------------------------------------------------------------------------------- CERTIFICATES OF DEPOSIT--CONTINUED Citicorp (C) 6.510%, 08/10/00 $ 11,585 $ 11,589 Regions Bank 6.700%, 02/02/01 40,000 39,987 --------- Total Certificates of Deposit (Cost $59,576) 59,576 --------- CERTIFICATES OF DEPOSIT -- YANKEE (13.3%) Bayerische Landesbank NY (C) 6.543%, 08/30/00 120,000 120,000 Canadian Imperial Bank NY 7.090%, 05/04/01 50,000 49,991 Commerzbank AG NY 6.860%, 04/04/01 25,000 24,994 Deutsche Bank NY 6.660%, 08/30/00 47,000 47,000 6.695%, 02/05/01 50,000 49,894 Landesbank Hessen-Thueringen 7.143%, 05/08/01 75,000 74,995 National Westminster Bank NY 7.260%, 05/09/01 47,000 46,996 Rabobank NY 7.160%, 05/10/01 25,000 24,998 Societe Generale NY (C) 6.573%, 08/29/00 125,000 125,000 UBS AG Stamford 6.850%, 03/28/01 50,000 49,984 --------- Total Certificates of Deposit -- Yankee (Cost $613,852) 613,852 --------- U.S. GOVERNMENT AGENCY OBLIGATIONS (2.9%) SLMA, MTN (C) 6.343%, 08/01/00 130,000 130,056 SLMA, Ser 1996-3, Cl A1 (C) 6.383%, 07/25/00 1,717 1,708 SLMA, Ser 1996-4, Cl A1 (C) 6.373%, 07/25/00 600 599 --------- ------------------------------------------------------------------------------- SHARES/FACE AMOUNT (000) VALUE (000) ------------------------------------------------------------------------------- Total U.S. Government Agency Obligations (Cost $132,363) $ 132,363 --------- CASH EQUIVALENT (0.5%) AIM Liquid Assets Portfolio 25,000,000 25,000 --------- Total Cash Equivalent (Cost $25,000) 25,000 --------- REPURCHASE AGREEMENTS (2.4%) ABN-Amro 6.450%, dated 05/31/00, matures 06/01/00, repurchase price $16,636,510 (collateralized by FHLMC obligations: total market value $35,326,201) (B) $ 16,634 16,634 Barclays 6.450%, dated 05/31/00, matures 06/01/00, repurchase price $15,020,276 (collateralized by FHLMC obligations: total market value $15,318,468) (B) 15,018 15,018 Deutsche Bank 6.450%, dated 05/31/00, matures 06/01/00, repurchase price $14,005,913 (collateralized by FNMA obligations: total market value $14,283,472) (B) 14,003 14,003 JP Morgan 6.450%, dated 05/31/00, matures 06/01/00, repurchase price $4,597,567 (collateralized by GNMA: total market value $4,688,678) (B) 4,597 4,597 10 ------------------------------------------------------------------------------- FACE AMOUNT (000) VALUE (000) ------------------------------------------------------------------------------- REPURCHASE AGREEMENTS--CONTINUED Merrill Lynch 6.450%, dated 05/31/00, matures 06/01/00, repurchase price $48,484,327 (collateralized by various FNMA obligations: total market value $49,449,162) (B) $ 48,476 $ 48,476 Morgan Stanley Dean Witter 6.450%, dated 05/31/00, matures 06/01/00, repurchase price $5,004,469 (collateralized by FHLMC obligations: total market value $5,211,226) (B) 5,004 5,004 Warburg Dillion 6.450%, dated 05/31/00, matures 06/01/00, repurchase price $8,565,644 (collateralized by a U.S. Treasury Note: total market value $8,736,468) (B) 8,564 8,564 --------- Total Repurchase Agreements (Cost $112,296) 112,296 --------- Total Investments (99.9%) (Cost $4,620,545) 4,620,545 --------- OTHER ASSETS AND LIABILITIES, NET (0.1%) 6,782 --------- ------------------------------------------------------------------------------- VALUE (000) ------------------------------------------------------------------------------- NET ASSETS: Fund shares of the Trust Shares (unlimited authorization -- no par value) based on 3,311,671,156 outstanding shares of beneficial interest $3,311,595 Fund shares of the Investor Shares (unlimited authorization -- no par value) based on 1,312,667,868 outstanding shares of beneficial interest 1,312,668 Fund shares of the Flex Shares (unlimited authorization -- no par value) based on 3,445,570 outstanding shares of beneficial interest 3,445 Undistributed net investment income 1 Accumulated net realized loss on investments (382) ---------- Total Net Assets (100.0%) $4,627,327 ========== Net Asset Value, Offering and Redemption Price Per Share -- Trust Shares $1.00 ========== Net Asset Value, Offering and Redemption Price Per Share -- Investor Shares $1.00 ========== Net Asset Value, Offering and Redemption Price Per Share -- Flex Shares $1.00 ========== THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS. FOR DESCRIPTIONS OF ABBREVIATIONS, PLEASE SEE PAGE 33. 11 STATEMENT OF NET ASSETS -------------------------------------------------------------------------------- STI CLASSIC FUNDS MAY 31, 2000 TAX-EXEMPT MONEY MARKET FUND -------------------------------------------------------------------------------- FACE AMOUNT (000) VALUE (000) -------------------------------------------------------------------------------- MUNICIPAL BONDS (98.0%) ALABAMA (2.3%) Alabama, Special Care Facilities Financing Authority, Depreciable Assets, RB, FGIC (C) (D) 3.950%, 06/07/00 $ 985 $ 985 Alabama State, Public School & College Authority, Putters, Ser 101, RB (C) (D) 5.000%, 06/01/00 9,975 9,975 Cherokee, Industrial Development Board, BOC Group Project, RB (C) (D) (E) 4.350%, 06/01/00 3,500 3,500 Lauderdale County, Health Care Authority, Coffee Health Group, Ser A, RB, MBIA 3.700%, 07/01/00 1,265 1,265 Mobile, Industrial Development, Board Dock & Wharf Holnam Project, Ser A, RB (C) (D) (E) 4.050%, 06/07/00 4,900 4,900 --------- 20,625 --------- ARIZONA (1.3%) Arizona State, Educational Loan Marketing, Ser A, RB, AMT (C) (D) (E) 4.150%, 06/07/00 2,500 2,500 Arizona State, Transportation Board Excise, Maricopa County Regional Area, Ser A, RB 4.500%, 07/01/00 1,000 1,000 ------------------------------------------------------------------------------- FACE AMOUNT (000 VALUE (000) ------------------------------------------------------------------------------- ARIZONA--CONTINUED Salt River Project, Agricultural Improvement & Power District, Electric System, Ser SG-10, RB (C) (D) 4.380%, 06/01/00 $ 7,570 $ 7,570 --------- 11,070 --------- CALIFORNIA (0.6%) California, Higher Education Authority, Senior Lien, Ser A-4, RB, AMT (C) (D) 4.350%, 04/01/01 5,000 5,000 --------- COLORADO (1.0%) Cherry Creek, South Metropolitan District Number 1, GO (C) (D) (E) 4.400%, 06/01/00 1,250 1,250 Colorado State, Multi-Family Housing Finance Authority, St. Moritz Project, Ser H, RB, FNMA (C) (D) 4.300%, 06/07/00 5,915 5,915 Lowry, Economic Redevelopment Authority, Ser B, RB (C) (D) (E) 4.100%, 06/07/00 2,000 2,000 --------- 9,165 --------- DELAWARE (0.2%) Delaware State, Educational Development Authority, RB (C) (D) (E) 4.725%, 06/01/00 1,875 1,875 --------- DISTRICT OF COLUMBIA (1.7%) District of Columbia, George Washington University, Ser C, RB, MBIA (C) (D) 4.300%, 06/07/00 7,500 7,500 12 ------------------------------------------------------------------------------- FACE AMOUNT (000) VALUE (000) ------------------------------------------------------------------------------- DISTRICT OF COLUMBIA--CONTINUED District of Columbia, Planned Parenthood, RB (C) (D) (E) 4.400%, 06/01/00 $ 7,250 $ 7,250 ---------- 14,750 ---------- FLORIDA (7.6%) Dade County, Water & Sewer System, RB, FGIC (C) (D) 4.050%, 06/07/00 10,700 10,700 Florida State, Board of Education Capital Outlay, Ser 223, GO (C) (D) 4.420%, 06/01/00 5,000 5,000 Florida State, Board of Education, Eagle Trust, RB Prerefunded @ 100 (C) (D) (F) 4.400%, 06/01/00 13,315 13,315 Florida State, Board of Education, Eagle Trust, Ser 94901, RB (C) (D) 4.400%, 06/01/00 16,900 16,900 Jacksonville, Health Facilities, Taxable Charity OB Group, Ser C, RB, MBIA (C) (D) 4.100%, 06/07/00 7,000 7,000 St. Lucie County, Pollution Control Authority, Power and Light, RB (C) (D) 4.000%, 07/18/00 1,500 1,500 University of North Florida, Parking System, RB (C) (D) (E) 4.400%, 06/01/00 6,000 6,000 University South Florida, Research Foundation, University Technology Center, RB (C) (D) (E) 4.450%, 06/01/00 7,000 7,000 ---------- 67,415 ---------- ------------------------------------------------------------------------------- FACE AMOUNT (000 VALUE (000) ------------------------------------------------------------------------------- GEORGIA (5.0%) Atlanta, Airport Authority, Ser 313, RB (C) (D) 4.450%, 06/01/00 $ 3,335 $ 3,335 Atlanta, Ser SG-123, GO (C) (D) 4.380%, 06/01/00 9,845 9,845 Cobb County, Development Authority, Educational Facilities, Kennesaw State University Project, RB, AMBAC (C) (D) 4.350%, 06/01/00 6,290 6,290 Fulton County, Development Authority, American National Red Cross Project, RB (C) (D) (E) 4.350%, 06/01/00 1,100 1,100 Fulton County, Development Authority, Metropolitan YMCA Project, RB (C) (D) (E) 4.300%, 06/01/00 8,500 8,500 Gordon County, Development Authority, Sara Lee Project, RB (C) (D) 4.400%, 06/01/00 1,400 1,400 Gwinnett County, Solid Waste Disposal Facilities, Lucent Technology Project, RB, AMT (C) (D) 4.250%, 06/07/00 3,000 3,000 Lafayette, Industrial Development, Blue-Bird Project, RB (C) (D) 4.350%, 06/01/00 1,000 1,000 Mitchell County, Industrial Development Authority, City of Camille Project, RB (C) (D) (E) 4.350%, 06/01/00 3,600 3,600 13 STATEMENT OF NET ASSETS -------------------------------------------------------------------------------- STI CLASSIC FUNDS MAY 31, 2000 TAX-EXEMPT MONEY MARKET FUND--CONTINUED -------------------------------------------------------------------------------- FACE AMOUNT (000) VALUE (000) -------------------------------------------------------------------------------- GEORGIA--CONTINUED Municipal Electric Authority, Project One, Sub-Ser E, RB (C) (D) (E) 4.250%, 06/07/00 $ 4,000 $ 4,000 Summerville, Development Authority, Exempt Facility, Image Industries, RB, AMT (C) (D) (E) 4.500%, 07/06/00 2,000 2,000 --------- 44,070 --------- HAWAII (2.2%) Hawaii State, Highway Authority, Ser PT 1058, RB (C) (D) 4.380%, 06/01/00 19,790 19,790 --------- IDAHO (0.6%) Idaho, Housing and Finance Association, Ser PA-115, RB (C) (D) 4.430%, 06/01/00 5,401 5,401 --------- ILLINOIS (8.8%) Bloomington, Airport Authority, GO (C) (D) 4.350%, 06/07/00 1,200 1,200 Chicago, Airport Special Facilities, Centerpoint O'Hare, RB, AMT (C) (D) (E) 4.350%, 06/07/00 3,500 3,500 Chicago, O'Hare International Airport, 2nd Lien, Ser A, RB (C) (D) (E) 3.950%, 06/07/00 2,300 2,300 Chicago, O'Hare International Airport, 2nd Lien, Ser B, RB (C) (D) (E) 3.950%, 07/01/00 1,790 1,790 Illinois State, Development Authority, Pollution Control, Aces-Illinois Power Company, Ser C, RB, AMT (C) (D) (E) 4.500%, 06/06/00 3,000 3,000 ------------------------------------------------------------------------------- FACE AMOUNT (000) VALUE (000) ------------------------------------------------------------------------------- ILLINOIS--CONTINUED Illinois State, Development Finance Authority, Derby Industrial Project, RB, AMT (C) (D) (E) 4.450%, 06/07/00 $ 800 $ 800 Illinois State, Development Finance Authority, Pollution Control, Power Project, Ser A, RB (C) (D) (E) 4.050%, 06/07/00 5,000 5,000 Illinois State, Development Finance Authority, Pollution Control, Power Project, Ser C, RB (C) (D) (E) 4.050%, 06/22/00 8,000 8,000 Illinois State, Development Finance Authority, PT 321, RB (C) (D) 4.500%, 06/01/00 10,000 10,000 Illinois State, Educational Facilities Authority, Chicago Childrens Museum, RB (C) (D) (E) 4.300%, 06/07/00 1,600 1,600 Illinois State, Educational Facilities Authority, Museum of Science & Industry, RB (C) (D) (E) 4.250%, 06/07/00 5,400 5,400 Illinois State, Health Facilities Authority, Advocate Health Care, Ser B, RB (C) (D) 4.250%, 06/07/00 2,900 2,900 Illinois State, Health Facilities Authority, Proctor Hospital, RB (C) (D) (E) 4.300%, 06/07/00 5,100 5,100 Illinois State, Health Facilities Authority, The Streeterville Project, RB (C) (D) (E) 4.300%, 06/07/00 2,000 2,000 14 ------------------------------------------------------------------------------- FACE AMOUNT (000) VALUE (000) ------------------------------------------------------------------------------- ILLINOIS--CONTINUED Illinois State, Housing Development Authority, Center Apartments, RB (C) (D) (E) 3.800%, 06/07/00 $10,600 $ 10,600 Illinois State, Pollution Control Finance Authority, Public Service, Ser C-1, RB 4.150%, 06/07/00 5,000 5,000 Illinois State, GO 4.250%, 06/01/00 2,500 2,500 Lockport, Industrial Development Authority, Panduit Project, RB, AMT (C) (D) (E) 4.350%, 06/07/00 2,000 2,000 Savanna, Industrial Development Authority, Metform Project, Ser A, RB, AMT (C) (D) (E) 4.350%, 06/07/00 500 500 Savanna, Industrial Development Authority, Metform Project, Ser B, RB, AMT (C) (D) (E) 4.350%, 06/07/00 1,400 1,400 Wheeling, Industrial Development Authority, Circuit Service Project, RB, AMT (C) (D) (E) 4.450%, 06/01/00 2,600 2,600 --------- 77,190 --------- INDIANA (3.7%) Elkhart, Industrial Economic Development Authority, Godfrey Conveyor Project, RB, AMT (C) (D) (E) 4.450%, 06/07/00 1,800 1,800 Elkhart, Industrial Economic Development Authority, Holly Park, RB, AMT (C) (D) (E) 4.450%, 06/07/00 2,000 2,000 ------------------------------------------------------------------------------- FACE AMOUNT (000) VALUE (000) ------------------------------------------------------------------------------- INDIANA--CONTINUED Development Authority, Tech Project, RB, AMT (C) (D) 4.350%, 06/07/00 $ 1,000 $ 1,000 Indianapolis, Industrial Economic Development Authority, Allied Signal Project, RB (C) (D) 4.400%, 06/07/00 3,500 3,500 Indianapolis, Local Public Improvements, Ser B, RB, MBIA 3.350%, 06/01/00 1,550 1,550 Indiana State, Development Finance Authority, Educational Facility, Indiana Historical Society, RB (C) (D) (E) 4.300%, 06/07/00 1,200 1,200 Indiana State, Educational Facilities Authority, Educational Facility, Indiana Wesleyan Project, Ser B, RB (C) (D) (E) 4.350%, 06/07/00 2,500 2,500 Indiana State, Health Facility Financing Authority, Clarian Health Partners, Ser B, RB (C) (D) 4.100%, 06/07/00 2,000 2,000 Indiana State, Transportation Financing Authority Highway, Ser PT-1159, RB (C) (D) 4.300%, 02/22/01 9,710 9,710 Jasper, Industrial Economic Development Authority, Wabash Valley Produce Project, RB, AMT (C) (D) (E) 4.450%, 06/01/00 2,000 2,000 La Porte County, Economic Development Authority, Pedcor Investments-Woodland, RB, AMT (C) (D) (E) 4.420%, 06/01/00 2,000 2,000 15 STATEMENT OF NET ASSETS ------------------------------------------------------------------------------- STI CLASSIC FUNDS MAY 31, 2000 TAX-EXEMPT MONEY MARKET FUND--CONTINUED -------------------------------------------------------------------------------- FACE AMOUNT (000) VALUE (000) -------------------------------------------------------------------------------- INDIANA--CONTINUED Michigan City, Economic Development Authority, Performance Packaging, RB, AMT (C) (D) (E) 4.500%, 06/07/00 $ 700 $ 700 Muncie, Industrial Development Authority, Diamond Plastics Project, RB (C) (D) (E) 4.550%, 06/01/00 1,900 1,900 Munster, School Building, Ser 269, RB, FSA (C) (D) 4.550%, 06/01/00 1,000 1,000 --------- 32,860 --------- IOWA (0.7%) Sac County, Industrial Authority, Evapco Project, RB, AMT (C) (D) (E) 4.550%, 06/01/00 3,500 3,500 West Des Moines, Commercial Development, Greyhound Lines Project, RB (C) (D) (E) 4.050%, 06/07/00 2,500 2,500 --------- 6,000 --------- KANSAS (1.0%) Sedgewick & Shawnee Counties, Ser PT 227, RB (C) (D) (E) 4.500%, 06/01/00 9,000 9,000 --------- KENTUCKY (1.2%) Jefferson County, Industrial Building, Fisher-Klosterman Project, RB, AMT (C) (D) (E) 4.450%, 06/01/00 2,005 2,005 Pulaski County, Solid Waste Disposal, National Rural Utility-East Kentucky Power, Ser B, RB, AMT (C) (D) 4.050%, 08/15/00 3,700 3,700 ------------------------------------------------------------------------------- FACE AMOUNT (000) VALUE (000) ------------------------------------------------------------------------------- KENTUCKY--CONTINUED Kentucky State, Economic Development Finance Authority, Health Alliance Project, Ser C, RB, MBIA (C) (D) 3.950%, 06/07/00 $ 5,000 $ 5,000 --------- 10,705 --------- LOUISIANA (1.8%) Calcasieu Parish, Industrial Development Board, Hydroserve Westlake, RB, AMT (C) (D) (E) 4.250%, 06/07/00 5,000 5,000 Louisiana State, Public Facilites Authority, Pollution Control, Ciba-Geigy Project, RB (C) (D) (E) 4.050%, 06/07/00 2,400 2,400 Loiusiana State, Eagle Trust, Ser 94180, RB (C) (D) 4.400%, 06/01/00 8,000 8,000 --------- 15,400 --------- MAINE (0.6%) Maine, Housing Authority Mortgage, Ser 295, RB, AMT (C) (D) 4.650%, 06/01/00 4,893 4,892 --------- MARYLAND (1.9%) Baltimore County, Industrial Development Authority, Allied Signal Project, RB (C) (D) 4.350%, 06/07/00 1,000 1,000 Maryland State, Community Development Administration, Ser PA 629R, RB (C) (D) 4.430%, 06/01/00 4,800 4,800 16 ------------------------------------------------------------------------------- FACE AMOUNT (000) VALUE (000) ------------------------------------------------------------------------------- MARYLAND--CONTINUED Maryland State, Community Development Administration, Ser 170, RB (C) (D) 4.380%, 06/01/00 $ 6,000 $ 6,000 Maryland State, Community Development Administration, Ser PT-256, RB, AMT, FHA (C) (D) (E) 4.430%, 06/01/00 4,590 4,590 --------- 16,390 --------- MICHIGAN (2.2%) Michigan State, Hospital Finance Authority, Ser A, RB (C) (D) (E) 4.000%, 06/07/00 9,400 9,400 Michigan State, Housing Development Authority, Woodland Meadows Project, RB, AMT (C) (D) (E) 4.150%, 06/07/00 1,000 1,000 Michigan State, Strategic Fund, Industrial Development Authority, Norcor Manufacturing Project, RB (C) (D) (E) 4.250%, 06/06/00 3,000 3,000 Michigan State, Strategic Fund, Consolidated Industrial Project, RB, AMT (C) (D) (E) 4.450%, 06/07/00 2,400 2,400 Oakland County, Economic Development Authority, Moody Family Limited Project, RB, AMT (C) (D) (E) 4.450%, 06/07/00 900 900 Okemos, Public School District, Ser I, GO Prerefunded @ 102 (F) 6.900%, 05/01/01 3,000 3,126 --------- 19,826 --------- -------------------------------------------------------------------------------- FACE AMOUNT (000) VALUE (000) -------------------------------------------------------------------------------- MINNESOTA (0.3%) Bloomington, Independent School District, Ser B, GO 5.000%, 02/01/01 $ 2,490 $ 2,502 --------- MISSISSIPPI (0.3%) Mississippi State, Business Finance Authority, Choctaw Generation, RB, AMT (C) (D) (E) 4.150%, 06/07/00 3,000 3,000 --------- MISSOURI (2.0%) Carthage, Industrial Development Authority, Schrieber Project, RB, AMT (C) (D) (E) 4.350%, 06/07/00 3,100 3,100 Saint Charles County, Industrial Development Authority, Casalon Apartment Project, RB (C) (D) (E) 4.250%, 06/01/00 5,670 5,670 Saint Charles County, Industrial Development Authority, Remington Apartments Project, RB (C) (D) (E) 4.250%, 06/01/00 4,800 4,800 Missouri State, Environmental Improvement & Energy Resource Authority, Utilicorp United Project, RB, AMT (C) (D) (E) 4.350%, 06/07/00 700 700 Missouri State, Health & Educational Facilities, Christian Health, Ser A, RB, FGIC Prerefunded @ 102 (F) 6.875%, 02/15/01 3,400 3,527 --------- 17,797 --------- 17 STATEMENT OF NET ASSETS ------------------------------------------------------------------------------- STI CLASSIC FUNDS MAY 31, 2000 TAX-EXEMPT MONEY MARKET FUND--CONTINUED -------------------------------------------------------------------------------- FACE AMOUNT (000) VALUE (000) -------------------------------------------------------------------------------- NEVADA (2.1%) Clark County, Airport Improvement Authority, Sub-Lien Ser A-2, RB, AMT (C) (D) (E) 4.100%, 06/07/00 $ 4,955 $ 4,955 Clark County, School District, GO (C) (D) 4.400%, 06/01/00 8,345 8,345 Nevada State, Ser SG-114, RB (C) (D) 4.380%, 06/01/00 5,000 5,000 --------- 18,300 --------- NEW HAMPSHIRE (1.2%) New Hampshire State, Housing Finance Authority, Multi-Family Housing, Fairways Project, Ser 1, RB, AMT (C) (D) (E) 4.100%, 06/07/00 5,000 5,000 New Hampshire State, Housing Finance Authority, Ser PT-348, RB (C) (D) (E) 4.430%, 06/01/00 5,195 5,195 --------- 10,195 --------- NEW YORK (3.8%) New York City, Municipal Water Financing Authority, Ser SGB-27, RB, FSA 4.370%, 06/01/00 9,000 9,000 New York City, Sub-Ser A-7, GO (C) (D) (E) 4.300%, 06/01/00 9,600 9,600 New York City, Sub-Ser E5, GO (C) (D) (E) 4.300%, 06/01/00 7,600 7,600 New York State, Dormitory Authority, Ser PA-541, RB (C) (D) 4.350%, 06/01/00 4,000 4,000 ------------------------------------------------------------------------------- FACE AMOUNT (000) VALUE (000) ------------------------------------------------------------------------------- NEW YORK--CONTINUED Southeast New York, Industrial Development Agency, Unilock New York Project, RB, AMT (C) (D) (E) 4.350%, 06/07/00 $ 2,200 $ 2,200 Syracuse, Ser 207, RB, AMT, FGIC (C) (D) 4.420%, 06/01/00 1,425 1,425 --------- 33,825 --------- NORTH CAROLINA (6.5%) Charlotte, Airport Authority, Ser A, RB, AMT, MBIA (C) (D) 4.150%, 06/07/00 1,000 1,000 Cleveland County, Family YMCA, RB (C) (D) (E) 4.400%, 06/01/00 2,840 2,840 Johnston County, Industrial Development Authority, Pollution Control, Mebane Parking Project, RB (C) (D) (E) 4.500%, 06/01/00 2,175 2,175 Mecklenburg County, Industrial Facilities & Pollution Control, Sterigenics International Project, RB, AMT (C) (D) (E) 4.300%, 06/07/00 1,700 1,700 Mecklenburg County, Public Improvement, Ser C, GO (C) (D) (E) 4.100%, 06/07/00 5,000 5,000 Mecklenburg County, Ser C, GO (C) (D) 4.300%, 06/01/00 8,850 8,850 North Carolina State, Educational Facilities Finance Agency, Charlotte Latin, RB (C) (D) (E) 4.300%, 06/01/00 5,000 5,000 18 ------------------------------------------------------------------------------- FACE AMOUNT (000) VALUE (000) ------------------------------------------------------------------------------- NORTH CAROLINA--CONTINUED North Carolina State, Educational Facilities Finance Agency, Guilford College, RB, MBIA (C) (D) 4.300%, 06/07/00 $ 2,200 $ 2,200 North Carolina State, Educational Facilities Finance Agency, Johnson Smith University, RB (C) (D) (E) 4.300%, 06/01/00 5,100 5,100 North Carolina State, Medical Care Community Hospital, Angel Medical Center, RB (C) (D) (E) 4.300%, 06/01/00 3,900 3,900 North Carolina State, Medical Care Community Hospital, Carolina Medicorp Project, RB Prerefunded @ 100 (F) 6.000%, 05/01/01 6,000 6,089 North Carolina State, Medical Care Community Hospital, Lutheran Services For The Aging Project, RB (C) (D) (E) 4.200%, 06/07/00 8,135 8,135 North Carolina State, Ser PA 342, RB (C) (D) 4.380%, 06/01/00 5,340 5,340 --------- 57,329 --------- OHIO (4.8%) Cuyahoga County, Hospital Facilities Authority, Cleveland Clinic Foundation, Ser A, RB (C) (D) 4.150%, 06/07/00 6,000 6,000 ------------------------------------------------------------------------------- FACE AMOUNT (000) VALUE (000) ------------------------------------------------------------------------------- OHIO--CONTINUED Hamilton County, Hospital Faciltity, Health Alliance, Ser A, RB, MBIA (C) (D) 3.900%, 06/07/00 $ 7,600 $ 7,600 Ohio State, Air Quality Development Authority, Cincinnati Gas & Electric Project, Ser B, RB (C) (D) (E) 4.300%, 06/01/00 4,400 4,400 Ohio State, Air Quality Development Authority, JMG Limited Partnership, Ser A, RB, AMT (C) (D) (E) 4.000%, 06/07/00 3,000 3,000 Ohio State, Environmental Improvement Authority, Newark Group Industries Project, RB, AMT (C) (D) (E) 4.400%, 06/01/00 4,600 4,600 Ohio State, Higher Education Facility Commission, Pooled Financing, RB (C) (D) (E) 4.350%, 06/01/00 4,835 4,835 Ohio State, Public Facilities Commission, Higher Education Capital Facilities, Ser II-A, RB 4.500%, 12/01/00 2,405 2,409 Warrren County, Health Care Improvement, Otterbein Project, Ser A, RB (C) (D) (E) 4.350%, 06/01/00 9,340 9,340 --------- 42,184 --------- OREGON (0.2%) Oregon State, Housing & Community Services, Single-Family Mortgage Project, Ser H, RB, AMT (C) (D) 3.480%, 06/29/00 1,895 1,895 --------- 19 STATEMENT OF NET ASSETS ------------------------------------------------------------------------------- STI CLASSIC FUNDS MAY 31, 2000 TAX-EXEMPT MONEY MARKET FUND--CONTINUED ------------------------------------------------------------------------------- FACE AMOUNT (000) VALUE (000) ------------------------------------------------------------------------------- PENNSYLVANIA (4.5%) Bethlehem, Area School District, GO, FGIC Prerefunded @ 100 (F) 5.600%, 03/01/01 $ 9,065 $ 9,154 Delaware County, Hospital Authority, Crozer-Chester Medical Center, RB, MBIA Prerefunded @ 102 (F) 7.150%, 12/15/00 2,550 2,639 Delaware Valley, Regional Finance Authority, Ser B, RB (C) (D) (E) 4.100%, 06/07/00 8,100 8,100 Pennsylvania State, Higher Educational Facilities Authority, Temple University Project, RB, ETM (C) (D) (E) 4.300%, 06/01/00 4,700 4,700 Pennsylvania State, Intergovern- mental Cooperation Authority, Special Tax Revenue, Ser SG-67, RB (C) (D) 4.350%, 06/01/00 9,630 9,630 Philadelphia, Ser A, TRAN 4.250%, 06/30/00 5,000 5,003 --------- 39,226 --------- RHODE ISLAND (1.0%) Rhode Island State, Health & Educational Board, Women & Infants Hospital, RB, FSA (C) (D) 3.850%, 09/01/00 3,365 3,365 Rhode Island State, Multi-Modal, GO (C) (D) 4.100%, 06/07/00 5,400 5,400 --------- 8,765 --------- ------------------------------------------------------------------------------- FACE AMOUNT (000) VALUE (000) ------------------------------------------------------------------------------- SOUTH CAROLINA (1.1%) South Carolina State, Jobs Economic Development Authority, Anderson Area YMCA Project, RB (C) (D) (E) 4.450%, 06/01/00 $ 7,100 $ 7,100 South Carolina State, Economic Development Authority, Kiswire Project, RB, AMT (C) (D) (E) 4.550%, 06/01/00 3,000 3,000 --------- 10,100 --------- TENNESSEE (4.2%) Covington, Industrial Development Board, Charms Project, RB, AMT (C) (D) (E) 4.350%, 06/07/00 3,000 3,000 Memphis-Shelby County, Industrial Development Board, Ponderosa Fibres American Project, RB, AMT (C) (D) (E) 4.500%, 06/01/00 1,000 1,000 Metropolitan Government Nashville & Davidson County, Eagle Trust, GO (C) (D) 4.400%, 06/01/00 10,000 10,000 Metropolitan Government Nashville & Davidson County, Health & Education Facilities Board, Vanderbilt University, Ser B, RB (C) (D) 4.300%, 06/01/00 4,000 4,000 Metropolitan Government Nashville & Davidson County, Multi-Family Chimneytop II Project, RB (C) (D) (E) 4.300%, 06/07/00 1,325 1,325 20 ------------------------------------------------------------------------------- FACE AMOUNT (000) VALUE (000) ------------------------------------------------------------------------------- TENNESSEE--CONTINUED Metropolitan Government Nashville & Davidson County, Ser 251, GO (C) (D) 4.550%, 06/01/00 $ 3,400 $ 3,400 Rutherford County, Industrial Development Authority, Farmers Cooperative Project, RB, AMT (C) (D) (E) 4.500%, 06/01/00 4,500 4,500 Tennessee State, Housing Development Agency, Ser 281, RB, AMT (C) (D) 4.650%, 06/01/00 2,553 2,552 Tennessee State, Ser 108, GO (C) (D) 5.000%, 06/01/00 2,495 2,495 Sumner County, Health & Educational Authority, Hospital Alliance Pooled, Ser PG-A, RB (C) (D) 4.425%, 06/01/00 5,000 5,000 --------- 37,272 --------- TEXAS (9.2%) Dallas-Fort Worth, International Airport, RB, MBIA 4.700%, 11/01/00 4,025 4,035 Georgetown, Higher Education Finance Authority, Southwestern University Project, RB (C) (D) (E) 4.100%, 06/07/00 2,000 2,000 Harris County, Industrial Development Authority, Lubrizol Project, RB (C) (D) 4.050%, 06/07/00 1,600 1,600 Hockley County, Industrial Development Authority, Amoco Project, RB (C) (D) 4.300%, 11/01/00 2,500 2,500 -------------------------------------------------------------------------------- FACE AMOUNT (000) VALUE (000) -------------------------------------------------------------------------------- TEXAS--CONTINUED Houston, Water & Sewer System Authority, Ser SG-78, RB (C) (D) 4.380%, 06/01/00 $ 8,835 $ 8,835 Pearland, Independent School District, Ser SG-106, RB (C) (D) 4.380%, 06/01/00 6,245 6,245 Texas State, Public Facilities, Eagle Trust, RB (C) (D) 4.400%, 06/01/00 7,180 7,180 4.100%, 06/01/00, TECP 10,000 10,000 Texas State, Eagle Trust, Ser 991301, GO (C) (D) 4.400%, 06/01/00 9,900 9,900 Texas State, Ser A, TRAN 4.500%, 08/31/00 20,000 20,038 Trinity, River Authority, Pollution Control, General Motors Project, RB (C) (D) 4.300%, 06/06/00 8,400 8,400 --------- 80,733 --------- UTAH (1.5%) Morgan County, Solid Waste Disposal, Holman Project, RB, AMT (C) (D) (E) 4.150%, 06/01/00 2,200 2,200 Utah State, Housing Finance Agency, Ser PT-209, RB (C) (D) 4.430%, 06/01/00 10,750 10,750 --------- 12,950 --------- VIRGINIA (0.8%) Front Royal & Warren County, Industrial Development Authority, Pen Tab Industries Project, RB, AMT (C) (D) (E) 4.500%, 06/01/00 2,600 2,600 21 STATEMENT OF NET ASSETS ------------------------------------------------------------------------------- STI CLASSIC FUNDS MAY 31, 2000 TAX-EXEMPT MONEY MARKET FUND--CONCLUDED ------------------------------------------------------------------------------- FACE AMOUNT (000) VALUE (000) ------------------------------------------------------------------------------- VIRGINIA--CONTINUED Virginia State, Housing Development Authority, Ser 301, RB (C) (D) 4.550%, 06/01/00 $ 4,360 $ 4,360 --------- 6,960 --------- WASHINGTON (4.5%) Port Seattle Passenger Facility, Ser 299, RB, AMT, AMBAC (C) (D) 4.650%, 06/01/00 2,358 2,357 Port Seattle, GO (C) (D) 3.950%, 06/07/00 1,000 1,000 Seattle, Water Systems Authority, RB (C) (D) (E) 3.950%, 06/07/00 4,200 4,200 Washington State, Health Care Facilities, Sunnyside Community Hospital, RB (C) (D) (E) 4.300%, 06/07/00 3,200 3,200 Washington State, Public Power Supply System, Nuclear Project No. 1, Ser 1A-1, RB (C) (D) (E) 3.950%, 06/07/00 4,535 4,535 Washington State, Public Power Supply System, Nuclear Project No. 1, Ser 1A-3, RB (C) (D) (E) 3.950%, 06/07/00 3,200 3,200 Washington State, Public Power Supply System, Nuclear Project No. 2, Ser 2A-1, RB, MBIA (C) (D) 4.050%, 06/07/00 5,200 5,200 Washington State, Public Power Supply System, Nuclear Project No. 3, Ser 3A-3, RB (C) (D) (E) 4.050%, 06/07/00 11,720 11,720 -------------------------------------------------------------------------------- FACE AMOUNT (000) VALUE (000) -------------------------------------------------------------------------------- WASHINGTON--CONTINUED Washington State, Ser B, GO Prerefunded @ 100 (F) 6.700%, 06/01/01 $ 4,000 $ 4,077 --------- 39,489 --------- WEST VIRGINIA (2.1%) Braxton County, Solid Waste Disposal, Weyerhaeuser Project, RB, AMT (C) (D) 4.350%, 06/07/00 7,650 7,650 Marshall County, Pollution Control Authority, AlliedSignal Project, RB (C) (D) 4.400%, 06/07/00 8,630 8,630 Marshall County, Pollution Control Authority, PPG Industries Project, RB (C) (D) 4.600%, 06/01/00 2,000 2,000 --------- 18,280 --------- WISCONSIN (2.2%) Appleton, Industrial Development Authority, Pro Lable Project, RB, AMT (C) (D) (E) 4.550%, 06/01/00 870 870 Germantown, Industrial Development Authority, Speaker Project, RB, AMT (C) (D) (E) 4.550%, 06/01/00 855 855 Holland, Industrial Development Authority, White Clover Dairy Project, RB, AMT (C) (D) (E) 4.450%, 06/01/00 1,500 1,500 Milwaukee, GO 5.000%, 02/01/01 2,000 2,010 Milwaukee, Metropolitan Sewer District, Ser 288, GO (C) (D) 4.600%, 06/01/00 1,763 1,763 22 -------------------------------------------------------------------------------- SHARES/FACE AMOUNT (000) VALUE (000) -------------------------------------------------------------------------------- WISCONSIN--CONTINUED Oconomowoc, Industrial Development Authority, Quest Technologies Project, RB, AMT (C) (D) (E) 4.450%, 06/01/00 $ 1,495 $ 1,495 Wisconsin State, Health Facilities Authorities, Franciscan Health Care, Ser A-1, RB (C) (D) (E) 3.950%, 06/07/00 6,105 6,105 Wisconsin State, Ser PT 1137, RB (C) (D) 4.300%, 02/15/01 4,515 4,515 --------- 19,113 --------- WYOMING (0.5%) Sweetwater County, Pollution Control, Pacificorp Project, Ser A, RB (C) (D) (E) 4.050%, 06/07/00 4,600 4,600 --------- MULTI-STATE (0.8%) Tax-Exempt Grantor Trust, IBM, Ser 1999-A, RB (C) (D) 4.550%, 06/01/00 7,200 7,200 --------- Total Municipal Bonds (Cost $863,139) 863,139 --------- CASH EQUIVALENTS (1.5%) Financial Square Tax Free Portfolio 3,537,267 3,537 SEI Institutional Tax Free Fund 9,904,203 9,904 --------- ------------------------------------------------------------------------------- VALUE (000) ------------------------------------------------------------------------------- Total Cash Equivalents (Cost $13,441) $ 13,441 --------- Total Investments (99.5%) (Cost $876,580) 876,580 --------- OTHER ASSETS AND LIABILITIES, NET (0.5%) 4,778 --------- NET ASSETS: Fund shares of the Trust Shares (unlimited authorization -- no par value) based on 755,887,410 outstanding shares of beneficial interest 755,887 Fund shares of the Investor Shares (unlimited authorization -- no par value) based on 125,512,381 outstanding shares of beneficial interest 125,512 Distributions in excess of net investment income (6) Accumulated net realized loss on investments (35) --------- Total Net Assets (100.0%) $881,358 ========= Net Asset Value, Offering and Redemption Price Per Share -- Trust Shares $1.00 ========= Net Asset Value, Offering and Redemption Price Per Share -- Investor Shares $1.00 ========= THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS. FOR DESCRIPTIONS OF ABBREVIATIONS, PLEASE SEE PAGE 33. 23 STATEMENT OF NET ASSETS ------------------------------------------------------------------------------- STI CLASSIC FUNDS MAY 31, 2000 TAX-FREE MONEY MARKET FUND ------------------------------------------------------------------------------- FACE AMOUNT (000) VALUE (000) ------------------------------------------------------------------------------- MUNICIPAL BONDS (98.5%) FLORIDA (2.3%) Dade County, Water & Sewer Systems Project, RB (C) (D) 4.380%, 06/07/00 $ 7,000 $ 7,000 --------- ILLINOIS (3.3%) Illinois State, Health Facility Authority, Swedish Covenant Hospital Project, RB, AMBAC (C) (D) 3.900%, 06/07/00 10,170 10,170 --------- LOUISIANA (3.6%) Ascension Parish, Pollution Control Authority, Borden Project, RB (C) (D) (E) 3.950%, 06/05/00 11,200 11,200 --------- VIRGINIA (88.2%) Albemarle County, Industrial Development Authority, University of Virginia Health Services Project, RB (C) (D) (E) 4.150%, 06/07/00 4,400 4,400 Alexandria, Industrial Development Authority, American Red Cross Project, RB (C) (D) (E) 4.150%, 06/07/00 4,100 4,100 Alexandria, Industrial Development Authority, Pooled Loan Program, Ser A, RB (C) (D) (E) 4.400%, 06/01/00 6,900 6,900 Alexandria, Industrial Development Authority, Pooled Loan Program, Sub-Ser A, RB (C) (D) (E) 4.400%, 06/01/00 3,500 3,500 -------------------------------------------------------------------------------- FACE AMOUNT (000) VALUE (000) -------------------------------------------------------------------------------- VIRGINIA--CONTINUED Alexandria, Industrial Development Authority, Resource Recovery Project, RB, AMT (C) (D) (E) 4.550%, 06/01/00 $11,400 $ 11,400 Amelia County, Industrial Development Authority, Chambers Waste Systems Project, RB, AMT (C) (D) (E) 4.250%, 06/07/00 750 750 Arlington County, Industrial Development Authority, Multi-Family Housing Authority, Arna Valley View Apartments Project, RB (C) (D) (E) 4.400%, 06/01/00 1,350 1,350 Arlington County, Ballston Public Parking Project, RB (C) (D) (E) 4.250%, 06/06/00 8,100 8,100 Ashland, Industrial Development Authority, Interflex Group Project, RB, AMT (C) (D) (E) 4.500%, 06/01/00 7,000 7,000 Chesapeake Bay, Bridge & Tunnel Community District Authority, General Resolution Project, RB, MBIA (C) (D) 4.400%, 06/01/00 6,755 6,755 Chesterfield County, Industrial Development Authority, AlliedSignal Project, RB (C) (D) 4.400%, 06/07/00 3,000 3,000 Chesterfield County, GO 5.500%, 01/15/01 1,905 1,922 Culpeper, Industrial Development Authority, Baptist Homes Project, RB (C) (D) (E) 4.400%, 06/01/00 1,495 1,495 24 ------------------------------------------------------------------------------- FACE AMOUNT (000) VALUE (000) ------------------------------------------------------------------------------- VIRGINIA--CONTINUED Fairfax County, Economic Development Authority, Flint Hill School Project, RB (C) (D) (E) 4.150%, 06/07/00 $ 4,340 $ 4,340 Fairfax County, Industrial Development Authority, Fairfax Hospital Project, Ser A, RB (C) (D) 3.900%, 06/07/00 1,660 1,660 Fairfax County, Industrial Development Authority, Fairfax Hospital Project, Ser B, RB (C) (D) 3.900%, 06/07/00 9,600 9,600 Fairfax County, Industrial Development Authority, Fairfax Hospital Project, Ser D, RB (C) (D) 3.900%, 06/07/00 3,700 3,700 Fairfax County, Ser C, GO 4.600%, 05/01/01 2,800 2,809 Fairfax County, Ser PA 149, RB (C) (D) 4.350%, 06/01/00 9,890 9,890 Hampton, Redevelopment & Multi-Family Housing Authority, Avalon at Hampton Project, Ser I-A, RB (C) (D) (E) 3.950%, 06/07/00 6,360 6,360 Hampton, Redevelopment & Multi-Family Housing Authority, Avalon Pointe Project, Ser I-A, RB, AMT (C) (D) (E) 4.000%, 06/07/00 5,037 5,037 Hanover County, Industiral Development Authority, Covenent Woods Project, RB (C) (D) (E) 4.450%, 06/01/00 15,000 15,000 -------------------------------------------------------------------------------- FACE AMOUNT (000) VALUE (000) -------------------------------------------------------------------------------- VIRGINIA--CONTINUED King George County, Industrial Development Authority, Birchwood Power Partners Project, Ser A, RB, AMT (C) (D) (E) 4.550%, 06/01/00 $1,500 $ 1,500 Louisa County, Industrial Development Authority, Pooled Financing, RB (C) (D) (E) 4.400%, 06/01/00 2,975 2,975 Norfolk, Industrial Development Authority, Children's Hospital Facilities Project, RB (C) (D) (E) 4.400%, 06/01/00 15,300 15,300 Norfolk, Redevelopment & Housing Authority, East Ocean View Property Project, RB (C) (D) (E) 4.400%, 06/01/00 3,890 3,890 Norfolk, Water Authority, RB FSA 4.000%, 11/01/00 785 785 Peninsula Port Authority, Dominion Terminal Project, Ser C, RB (C) (D) (E) 4.350%, 06/01/00 1,450 1,450 Portsmouth, Industrial Development Authority, Fairwood Homes Project, Ser A, RB (C) (D) (E) 4.150%, 06/01/00 1,605 1,605 Prince George County, Industrial Development Authority, Metropolitian Span Project, RB, AMT (C) (D) (E) 4.450%, 06/01/00 4,800 4,800 Prince William County, Public Improvements, Ser B, GO 5.000%, 08/01/00 1,000 1,002 25 STATEMENT OF NET ASSETS -------------------------------------------------------------------------------- STI CLASSIC FUNDS MAY 31, 2000 TAX-FREE MONEY MARKET FUND--CONTINUED -------------------------------------------------------------------------------- FACE AMOUNT (000) VALUE (000) -------------------------------------------------------------------------------- VIRGINIA--CONTINUED Pulaski County, Industrial Development Authority, Pulaski Furniture Project, RB (C) (D) (E) 4.400%, 06/01/00 $ 1,800 $ 1,800 Richmond, Public Utility Authority, Ser A, RB (C) (D) 4.450%, 06/01/00 3,500 3,500 Richmond, Redevelopment & Multi-Family Housing Authority, Ser PT-1022, RB (C) (D) 4.450%, 06/01/00 14,490 14,490 Richmond, Redevelopment & Multi-Family Housing Authority, Stony Point Project, RB (C) (D) (E) 4.400%, 06/01/00 1,660 1,660 Richmond, Public Improvement, Ser A, GO Prerefunded @ 102 (F) 6.250%, 01/15/01 9,110 9,408 Roanoke, Industrial Development Authority, Hollins University Project, RB (C) (D) (E) 4.150%, 06/07/00 4,500 4,500 Roanoke, Industrial Development Authority, Carilion Health System Project, Ser B, RB (C) (D) 4.450%, 06/01/00 1,000 1,000 Roanoke, Industrial Development Authority, Roanoke Memorial Hospital Project, Ser C, RB (C) (D) 4.300%, 06/01/00 1,935 1,935 Roanoke, Industrial Development Authority, Roanoke Memorial Hospital Project, RB, MBIA Prerefunded @100 (F) 6.500%, 07/01/00 5,000 5,012 ------------------------------------------------------------------------------- FACE AMOUNT (000) VALUE (000) ------------------------------------------------------------------------------- VIRGINIA--CONTINUED Roanoke Public Improvements, GO 4.000%, 08/01/00 $ 2,165 $ 2,165 Roanoke Public Improvements, Ser B, GO 5.800%, 08/01/00 1,000 1,003 Roanoke, Redevelopment & Multi-Family Housing Authority, Stepping Stone Apartments Project, RB (C) (D) 4.625%, 06/25/00 2,000 2,000 Virginia State, Transportation Authority, Eagle Trust, Ser 994601, RB (C) (D) 4.400%, 06/01/00 5,000 5,000 Virginia State Port Authority, Ser SG 111, RB (C) (D) 4.400%, 06/01/00 10,100 10,100 Virginia State, Public School Authority, School Financing, Ser B, GO 5.000%, 08/01/00 4,665 4,674 Virginia State, Public School Authority, Ser C, RB 5.000%, 08/01/00 4,335 4,346 Virginia State, GO 5.000%, 06/01/00 2,000 2,000 Staunton, Industrial Development Authority, Diebold-Staunton Project, RB (C) (D) (E) 4.450%, 06/01/00 530 530 Suffolk, Redevelopment & Multi- Family Housing Authority, Windsor Potomac Project, RB (C) (D) 4.700%, 06/07/00 410 410 Suffolk, Redevelopment & Multi- Family Housing Authority, Windsor Fieldstone Project, RB (C) (D) 4.700%, 06/07/00 4,718 4,718 26 ------------------------------------------------------------------------------- FACE AMOUNT (000) VALUE (000) ------------------------------------------------------------------------------- VIRGINIA--CONTINUED Virginia Beach, Industrial Development Authority, Ocean Ranch Project, RB (C) (D) (E) 4.400%, 06/01/00 $ 626 $ 626 Virginia Beach, Industrial Development Authority, LA Quinta Inns Project, RB (C) (D) (E) 4.450%, 06/01/00 1,125 1,125 Virginia Beach, Development & Multi-Family Authority, Ser PT 1213, RB (C) (D) 4.580%, 06/01/00 1,000 1,000 Virginia Beach, Development Authority, Westminster- Canterbury Project, Ser B, RB (C) (D) (E) 4.350%, 06/07/00 3,000 3,000 Virginia Beach, Public Improvement, GO 5.000%, 03/01/01 3,805 3,828 Virginia College, Building Authority, 21st Century College Program, RB 4.125%, 02/01/01 8,185 8,185 Virginia College, Building Authority, Equipment Leasing Program, RB 4.250%, 02/01/01 750 750 Virginia State, Housing Development Authority, Commonwealth Mortgage Project, Sub-Ser A, RB 4.150%, 09/12/00 2,500 2,500 Virginia State, Housing Development Authority, Commonwealth Mortgage Project, Sub-Ser A, RB 4.150%, 10/19/00 8,000 8,000 ------------------------------------------------------------------------------- SHARES/FACE AMOUNT (000) VALUE (000) ------------------------------------------------------------------------------- VIRGINIA--CONTINUED Virginia State, Housing Devolopment Authority, Commonwealth Merlots Project, Ser CC, RB (C) (D) (E) 4.350%, 06/07/00 $ 4,500 $ 4,500 Virginia State, Public School Authority, Ser B, RB 4.700%, 01/01/01 5,000 5,021 Williamsburg, Industrial Development Authority, Colonial Williamsburg Museum Foundation Project, RB (C) (D) (E 4.700%, 06/07/00 600 600 --------- 271,761 --------- PUERTO RICO (1.1%) Puerto Rico, Commonwealth Highway & Transportation Authority, Ser PA 472, RB (C) (D) 3.900%, 06/01/00 3,260 3,260 --------- Total Municipal Bonds (Cost $303,391) 303,391 --------- CASH EQUIVALENTS (1.0%) Financial Square Tax Free Portfolio 2,129,301 2,129 SEI Institutional Tax Free Fund 1,000,000 1,000 --------- Total Cash Equivalents (Cost $3,129) 3,129 --------- Total Investments (99.5%) (Cost $306,520) 306,520 --------- 27 STATEMENT OF NET ASSETS ------------------------------------------------------------------------------- STI CLASSIC FUNDS MAY 31, 2000 TAX-FREE MONEY MARKET FUND--CONCLUDED ------------------------------------------------------------------------------- VALUE (000) ------------------------------------------------------------------------------- OTHER ASSETS AND LIABILITIES, NET (0.5%) $ 1,601 --------- NET ASSETS: Fund shares of the Trust Shares (unlimited authorization -- no par value) based on 245,305,124 outstanding shares of beneficial interest 245,281 Fund shares of the Investor Shares (unlimited authorization -- no par value) based on 62,877,446 outstanding shares of beneficial interest 62,878 Distributions in excess of net investment income (11) Accumulated net realized loss on investments (27) --------- Total Net Assets (100.0%) $ 308,121 ========= Net Asset Value, Offering and Redemption Price Per Share -- Trust Shares $1.00 ========= Net Asset Value, Offering and Redemption Price Per Share -- Investor Shares $1.00 ========= THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS. FOR DESCRIPTIONS OF ABBREVIATIONS, PLEASE SEE PAGE 33. 28 ------------------------------------------------------------------------------- U.S. GOVERNMENT SECURITIES MONEY MARKET FUND ------------------------------------------------------------------------------- SHARES/FACE AMOUNT (000) VALUE (000) ------------------------------------------------------------------------------- U.S. TREASURY OBLIGATIONS (17.9%) U.S. Treasury Bill 5.605%, 10/12/00 $80,000 $ 78,345 U.S. Treasury Note 5.000%, 02/28/01 20,000 19,803 -------- Total U.S. Treasury Obligations (Cost $98,148) 98,148 -------- CASH EQUIVALENT (4.6%) AIM Institutional Treasury Portfolio 25,000,000 25,000 -------- Total Cash Equivalent (Cost $25,000) 25,000 -------- REPURCHASE AGREEMENTS (77.8%) ABN-Amro 6.390%, dated 05/31/00, matures 06/01/00, repurchse price $22,345,614 (collateralized by a U.S. Treasury Note: total market value $22,788,927) (B) 22,342 22,342 Barclays 6.390%, dated 05/31/00, matures 06/01/00, repurchase price $21,003,728 (collateralized by various U.S. Treasury obligations: total market value $21,420,900) (B) 21,000 21,000 Deutsche Bank 6.390%, dated 05/31/00, matures 06/01/00, repurchase price $21,003,728 (collateralized by a U.S. Treasury Note: total market value $21,420,214) (B) 21,000 21,000 ------------------------------------------------------------------------------- FACE AMOUNT (000) VALUE (000) ------------------------------------------------------------------------------- REPURCHASE AGREEMENTS--CONTINUED Greenwich Capital 6.390%, dated 05/31/00, matures 06/01/00, repurchase price $21,377,648 (collateralized by a U.S. Treasury Note: total market value $21,803,293) (B) $ 21,374 $ 21,374 JP Morgan 6.390%, dated 05/31/00, matures 06/01/00, repurchase price $149,287,464 (collateralized by various GNMA and U.S. Treasury obligations: total market value $152,247,104) (B) 149,261 149,261 Merrill Lynch 6.390%, dated 05/31/00, matures 06/01/00, repurchase price $21,119,076.35 (collateralized by various GNMA obligations: total market value $21,539,555) (B) 21,115 21,115 Morgan Stanley Dean Witter 6.390%, dated 05/31/00, matures 06/01/00, repurchase price $127,208,619 (collateralized by various GNMA obligations: total market value $131,883,074) (B) 127,186 127,186 29 STI CLASSIC FUNDS MAY 31, 2000 ------------------------------------------------------------------------------- U.S. GOVERNMENT SECURITIES MONEY MARKET FUND--CONCLUDED ------------------------------------------------------------------------------- FACE AMOUNT (000) VALUE (000) ------------------------------------------------------------------------------- REPURCHASE AGREEMENTS--CONTINUED Salomon Smith Barney 6.390%, dated 05/31/00, matures 06/01/00, repurchase price $22,015,463 (collateralized by various U.S. Treasury obligations: total market value $22,548,567) (B) $ 22,012 $ 22,012 Warburg Dillion 6.390%, dated 05/31/00, matures 06/01/00, repurchase price $21,258,309 (collateralized by a U.S. Treasury Note: total market value $21,682,944) (B) 21,254 21,254 -------- Total Repurchase Agreements (Cost $426,544) 426,544 -------- Total Investments (100.3%) (Cost $549,692) 549,692 -------- OTHER ASSETS AND LIABILITIES, NET (-0.3%) (1,813) -------- ------------------------------------------------------------------------------- VALUE (000) ------------------------------------------------------------------------------- NET ASSETS: Fund shares of the Trust Shares (unlimited authorization -- no par value) based on 468,324,485 outstanding shares of beneficial interest $468,325 Fund shares of the Investor Shares (unlimited authorization -- no par value) based on 79,281,537 outstanding shares of beneficial interest 79,281 Undistributed net investment income 301 Accumulated net realized loss on investments (28) -------- Total Net Assets (100.0%) $547,879 ======== Net Asset Value, Offering and Redemption Price Per Share -- Trust Shares $1.00 ======== Net Asset Value, Offering and Redemption Price Per Share -- Investor Shares $1.00 ======== THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS. FOR DESCRIPTIONS OF ABBREVIATIONS, PLEASE SEE PAGE 33. 30 U.S. TREASURY MONEY MARKET FUND ------------------------------------------------------------------------------- FACE AMOUNT (000) VALUE (000) ------------------------------------------------------------------------------- U.S. TREASURY OBLIGATIONS (22.7%) U.S. Treasury Bill 5.840%, 02/01/01 $15,000 $ 14,404 U.S. Treasury Notes 5.875%, 06/30/00 30,000 30,027 5.375%, 07/31/00 15,000 14,999 5.125%, 08/31/00 15,000 14,990 5.625%, 11/30/00 25,000 24,952 5.250%, 01/31/01 30,000 29,832 5.625%, 02/28/01 15,000 14,917 6.500%, 05/31/01 20,000 19,960 -------- Total U.S. Treasury Obligations (Cost $164,081) 164,081 -------- REPURCHASE AGREEMENTS (77.5%) ABN-Amro 6.310%, dated 05/31/00, matures 06/01/00, repurchase price $32,875,013 (collateralized by various U.S. Treasury obligations: total market value $33,527,298) (B) 32,869 32,869 Barclays 6.310%, dated 05/31/00, matures 06/01/00, repurchase price $31,873,466 (collateralized by a U.S. Treasury Note: total market value $32,506,103) (B) 31,868 31,868 Deutsche Bank 6.310%, dated 05/31/00, matures 06/01/00, repurchase price $25,165,255 (collateralized by a U.S. Treasury Bond: total market value $25,664,368) (B) 25,161 25,161 ------------------------------------------------------------------------------- FACE AMOUNT (000) VALUE (000) ------------------------------------------------------------------------------- REPURCHASE AGREEMENTS--CONTINUED Greenwich Capital 6.310%, dated 05/31/00, matures 06/01/00, repurchase price $176,109,211 (collateralized by U.S. Treasury obligations: total market value $179,602,834) (B) $176,078 $176,078 JP Morgan 6.310%, dated 05/31/00, matures 06/01/00, repurchase price $24,001,317 (collateralized by U.S. Treasury Note: total market value $24,477,482) (B) 23,997 23,997 Merrill Lynch 6.310%, dated 05/31/00, matures 06/01/00, repurchase price $31,643,624 (collateralized by U.S. Treasury Notes: total market value $32,272,994) (B) 31,638 31,638 Morgan Stanley Dean Witter 6.310%, dated 05/31/00, matures 06/01/00, repurchase price $31,498,071 (collateralized by a U.S. Treasury Bond: total market value $32,209,876) (B) 31,493 31,493 Salomon Smith Barney 6.310%, dated 05/31/00, matures 06/01/00, repurchase price $31,832,560 (collateralized by a U.S. Treasury Note: total market value $32,934,696) (B) 31,827 31,827 Warburg Dillion 6.310%, dated 05/31/00, matures 06/01/00, repurchase price $176,047,517 (collateralized by a U.S. Treasury Note: total market value $179,541,003) (B) 176,017 176,017 -------- 31 STATEMENTS OF NET ASSETS ------------------------------------------------------------------------------- STI CLASSIC FUNDS MAY 31, 2000 U.S. TREASURY MONEY MARKET FUND--CONCLUDED ------------------------------------------------------------------------------- VALUE (000) ------------------------------------------------------------------------------- Total Repurchase Agreements (Cost $560,948) $560,948 -------- Total Investments (100.2%) (Cost $725,029) 725,029 -------- OTHER ASSETS AND LIABILITIES, NET (-0.2%) (1,752) -------- NET ASSETS: Fund shares of the Trust Shares (unlimited authorization -- no par value) based on 723,365,117 outstanding shares of beneficial interest 723,280 Distributions in excess of net investment income (3) -------- Total Net Assets (100.0%) $723,277 ======== Net Asset Value, Offering and Redemption Price Per Share -- Trust Shares $1.00 ======== THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS. FOR DESCRIPTIONS OF ABBREVIATIONS, PLEASE SEE PAGE 33. 32 KEY TO ABBREVIATIONS USED IN THE STATEMENT OF NET ASSETS AMBAC Security insured by the American Municipal Bond Assurance Corporation AMT Alternative Minimum Tax Cl Class ETM Escrowed to Maturity FGIC Security insured by the Financial Guaranty Insurance Company FHA Federal Housing Authority FHLMC Federal Home Loan Mortgage Corporation FNMA Federal National Mortgage Association FSA Security insured by Financial Securities Assurance GNMA Government National Mortgage Association GO General Obligation MBIA Security insured by the Municipal Bond Insurance Association MTN Medium Term Note RB Revenue Bond Ser Series SLMA Student Loan Marketing Association TECP Tax Exempt Commercial Paper TRAN Tax and Revenue Anticipation Note (A) Private Placement Security (B) Tri-Party Repurchase Agreement (C) Adjustable Rate Security. The rate reported on the Statement of Net Assets is the rate in effect on May 31, 2000. The date shown is the next scheduled reset date. (D) Put and demand features exist requiring the issuer to repurchase the instrument prior to maturity. (E) Securities are held in connection with a letter of credit issued a major bank. (F) Prerefunded Security. The maturity date shown is the prerefunded date. 33 This page left intentionally blank. STATEMENTS OF OPERATIONS (000) ------------------------------------------------------------------------------------------------------------------------------------ STI CLASSIC FUNDS FOR THE PERIOD ENDED MAY 31, 2000 TAX-EXEMPT TAX-FREE U.S. GOVERNMENT PRIME QUALITY MONEY MONEY SECURITIES U.S. TREASURY MONEY MARKET MARKET MARKET MONEY MARKET MONEY FUND FUND FUND FUND MARKET FUND ------------- ---------- ---------- ------------- -------------- 06/01/99- 06/01/99- 06/01/99- 06/01/99- 06/01/99- 05/31/00 05/31/00 05/31/00 05/31/00 05/31/00 ---------- -------- -------- -------- --------- Interest Income $241,262 $27,734 $10,990 $25,872 $41,783 -------- ------- ------- ------- ------- Expenses: Investment Advisory Fees 27,672 4,158 1,188 3,101 5,091 Less: Investment Advisory Fees Waived (6,310) (1,060) (4) (537) (855) Administrator Fees 3,012 535 212 337 579 Transfer Agent Fees-- Trust Shares 20 15 5 16 15 Transfer Agent Fees-- Investor Shares 31 7 10 14 -- Transfer Agent Fees-- Flex Shares 9 -- -- -- -- Transfer Agent Out of Pocket Expenses 160 52 17 3 30 Printing Expenses 278 46 18 4 53 Custody Fees 213 41 16 16 1 Professional Fees 277 49 32 27 14 Trustee Fees 56 5 1 4 1 Registration Fees 146 74 8 28 8 Distribution Fees-- Investor Shares 1,973 194 51 108 -- Less: Distribution Fees Waived-- Investor Shares (320) (49) (25) (31) -- Distribution Fees-- Flex Shares 14 -- -- -- -- Less: Distribution Fees Waived-- Flex Shares (6) -- -- -- -- Insurance and Other Fees 10 15 7 6 -- -------- ------- ------- ------- ------- Total Expenses 27,235 4,082 1,536 3,096 4,937 -------- ------- ------- ------- ------- Net Investment Income 214,027 23,652 9,454 22,776 36,846 -------- ------- ------- ------- ------- Net Realized Loss on Securities Sold (34) (30) (20) (28) -- -------- ------- ------- ------- ------- Net Increase in Net Assets from Operations $213,993 $23,622 $ 9,434 $22,748 $36,846 ======== ======= ======= ======= =======
Amounts designated as "--" are either $0 or round to $0. THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS. 35 STATEMENTS OF CHANGES IN NET ASSETS (000) ------------------------------------------------------------------------------------------------------------------------------------ STI CLASSIC FUNDS FOR THE PERIODS ENDED MAY 31, AND NOVEMBER 30, U.S. GOVERNMENT PRIME QUALITY TAX-EXEMPT TAX-FREE SECURITIES MONEY MARKET FUND MONEY MARKET FUND MONEY MARKET FUND MONEY MARKET FUND ------------------- --------------------- ---------------------------------- ----------------- 06/01/99 06/01/98- 06/01/99- 06/01/98- 06/01/99- 12/01/98 12/01/97- 06/01/99- 06/01/98- 05/31/00 05/31/99 05/31/00 05/31/99 05/31/00 05/31/99 11/30/98 05/31/00 05/31/99 -------- -------- -------- -------- -------- -------- --------- -------- -------- Operations: Net Investment Income .$ 214,027 $ 125,543 $ 23,652 $ 20,454 $ 9,454 $ 3,806 $ 7,024 $ 22,776 $ 20,487 Net Realized Gain (Loss) on Investments (34) (19) (30) (1) (20) 2 (9) (28) 191 ---------- ---------- --------- ---------- --------- -------- --------- -------- -------- Increase in Net Assets from Operations 213,993 125,524 23,622 20,453 9,434 3,808 7,015 22,748 20,678 ---------- ---------- --------- ---------- --------- -------- --------- -------- --------- Trust Shares ......... (165,267) (99,427) (19,775 (16,665) (9,064 (3,739) (6,778 (19,825) (17,844) Investor Shares ........(48,632) (26,132) (3,883) (3,788) (400) (91) (239) (2,927) (2,641) Flex Shares............... (84) -- -- -- -- -- -- -- ---------- ---------- --------- ---------- --------- -------- --------- -------- -------- Total Distributions ..(213,983) (125,559) (23,658) (20,453) (9,464) (3,830) (7,017) (22,752) (20,485) ---------- ---------- --------- ---------- --------- -------- --------- -------- -------- Capital Transactions (1): Trust Shares: Proceeds from Shares Issued 6,299,753 4,698,805 1,113,796 984,432 460,442 246,896 369,536 905,352 739,766 Shares Issued in Connection with Crestar Merger .. -- 1,179,761 -- -- -- -- -- -- -- Reinvestment of Cash Distributions 9,263 4,306 -- -- -- -- -- 3,025 1,170 Cost of Shares Redeemed .. (6,901,000)(3,859,828) (999,548) (790,815) (485,600)(247,343) (325,471) (844,261) (714,135) ---------- ---------- --------- ---------- --------- -------- --------- -------- -------- Increase (Decrease) in Net Assets From Trust Share Transactions (591,984) 2,023,044 114,248 193,617 (25,158) (447) 44,065 64,116 26,801 --------- ---------- --------- ---------- --------- -------- --------- -------- -------- Investor Shares: Proceeds from Shares Issued 1,401,995 1,199,739 334,145 356,214 97,834 5,749 22,060 290,823 294,871 Shares Issued in Connection with Crestar Merger .. -- 187,089 -- -- -- -- -- -- -- Reinvestment of Cash Distributions 51,455 24,846 4,155 3,497 415 110 237 3,062 2,578 Cost of Shares Redeemed .. (1,058,926) (905,401) (341,648) (365,395) (41,326) (8,754) (21,081) (276,049) (294,755) --------- ---------- --------- ---------- --------- -------- --------- -------- -------- Increase (Decrease) in Net Assets From Investor Share Transactions 394,524 506,273 (3,348) (5,684) 56,923 (2,895) 1,216 17,836 2,694 --------- ---------- --------- ---------- --------- -------- --------- -------- -------- Flex Shares: Proceeds from Shares Is 6,126 -- -- -- -- -- -- -- -- Reinvestment of Cash Distributions 70 -- -- -- -- -- -- -- -- Cost of Shares Redeemed ..(2,751) -- -- -- -- -- -- -- -- ---------- ---------- --------- ---------- --------- -------- --------- -------- -------- Increase in Net Assets From Flex Share Transactions 3,445 -- -- -- -- -- -- -- -- ---------- ---------- --------- ---------- --------- -------- --------- -------- --------- Increase (Decrease) in Net Assets From Share Transactions (194,015) 2,529,317 110,900 187,933 31,765 (3,342) 45,281 81,952 29,495 ---------- ---------- --------- ---------- --------- -------- --------- -------- -------- Total Increase (Decrease) in Net Assets........ (194,005 2,529,282 110,864 187,933 31,735 (3,364) 45,279 81,948 29,688 ---------- ---------- --------- ---------- --------- -------- --------- -------- -------- Net Assets: Beginning of Period ....4,821,332 2,292,050 770,494 582,561 276,386 279,750 234,471 465,931 436,243 ---------- ---------- --------- ---------- --------- -------- --------- -------- -------- End of Period .........$4,627,327 $4,821,332 $ 881,358 $ 770,494 $ 308,121 $276,386 $ 279,750 $547,879 $465,931 ========== ========== ========= ========== ========= ======== ========= ======== ========
STI CLASSIC FUNDS FOR THE PERIODS ENDED MAY 31, AND NOVEMBER 30,
U.S. TREASURY MONEY MARKET FUND ------------------------------------ 06/01/99- 12/01/98- 12/01/97- 05/31/00 05/31/99 11/30/98 --------- --------- --------- Operations: Net Investment Income . $ 36,846 $ 15,437 $ 29,481 Net Realized Gain (Loss) on Investments -- -- -- ---------- -------- -------- Increase in Net Assets from Operations 36,846 15,437 29,481 ---------- -------- -------- Trust Shares ........ (36,849) (15,522) (29,476) Investor Shares ..... -- -- -- Flex Shares.......... -- -- -- ---------- --------- ---------- Total Distributions (36,849) (15,522) (29,476) ---------- --------- --------- Capital Transactions (1): Trust Shares: Proceeds from Shares Issued 1,480,905 681,589 1,131,937 Shares Issued in Connection with Crestar Merger . -- -- -- Reinvestment of Cash Distributions 23 1 4 Cost of Shares Redeemed .. (1,518,481) (620,595) (1,064,404) ---------- --------- ---------- Increase (Decrease) in Net Assets From Trust Share Transactions (37,553) 60,995 67,537 ---------- --------- ---------- Investor Shares: Proceeds from Shares Issued -- -- -- Shares Issued in Connection with Crestar Merger .. -- -- -- Reinvestment of Cash Distributions -- -- -- Cost of Shares Redeemed .. -- -- -- ---------- --------- ---------- Increase (Decrease) in Net Assets From Investor Share Transactions -- -- -- ---------- --------- ---------- Flex Shares: Proceeds from Shares I -- -- -- Reinvestment of Cash Distributions -- -- -- Cost of Shares Redeemde -- -- -- ---------- --------- ---------- Increase in Net Assets From Flex Share Transactions -- -- -- ---------- --------- ---------- Increase (Decrease) in Net Assets From Share Transactions (37,553) 60,995 67,537 ---------- --------- ---------- Total Increase (Decrease) in Net Assets........ (37,556 60,910 67,542 ---------- --------- ---------- Net Assets: Beginning of Period ... 760,833 699,923 632,381 ---------- --------- ---------- End of Period ......... $ 723,277 $ 760,833 $ 699,923 ========== ========= ==========
Amounts designated as "--" are either $0 or round to $0. THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS. 36 STATEMENTS OF CHANGES IN NET ASSETS (000) --------------------------------------------------------------------------------
U.S. GOVERNMENT PRIME QUALITY TAX-EXEMPT TAX-FREE SECURITIES MONEY MARKET FUND MONEY MARKET FUND MONEY MARKET FUND MONEY MARKET FUND ------------------- --------------------- ---------------------------------- ------------------- 06/01/99 06/01/98- 06/01/99- 06/01/98- 06/01/99- 12/01/98 12/01/97- 06/01/99- 06/01/98 05/31/00 05/31/99 05/31/00 05/31/99 05/31/00 05/31/99 11/30/98 05/31/00 05/31/99 -------- -------- -------- --------- -------- -------- --------- -------- ------- (1) Shares Issued and Redeemed: Trust Shares: Shares Issued ............ 6,299,749 4,698,805 1,113,795 984,432 460,442 246,896 369,536 905,352 739,766 Shares Issued in Connection with Crestar Merger .. -- 1,179,840 -- -- -- -- -- -- -- Shares Issued in Lieu of Cash Distributions 9,263 4,306 -- -- -- -- -- 3,024 1,170 Shares Redeemed ..........(6,901,000)(3,859,828) (999,547) (790,815) (485,599) (247,343) (325,471) (844,261) (714,135) --------- ----------- -------- -------- -------- -------- -------- -------- -------- Net Trust Share Transactions (591,988) 2,023,123 114,248 193,617 (25,157) (447) 44,065 64,115 26,801 --------- ----------- -------- -------- -------- -------- -------- -------- -------- Investor Shares: Shares Issued ........... 1,401,995 1,199,740 334,146 356,214 97,834 5,749 22,060 290,823 294,871 Shares Issued in Connection with Crestar Merger .. -- 187,089 -- -- -- -- -- -- -- Shares Issued in Lieu of Cash Distributions 51,455 24,846 4,155 3,497 415 110 237 3,063 2,578 Shares Redeemed ..........(1,058,894) (905,433 (341,648) (365,395) (41,327) (8,754) (21,081) (276,049) (294,755) ---------- ---------- -------- -------- -------- -------- -------- -------- -------- Net Investor Share Transactions 394,556 506,242 (3,347 (5,684) 56,922 (2,895) 1,216 17,837 2,694 ---------- ---------- -------- -------- -------- -------- -------- -------- -------- Flex Shares Shares Issued........... 6,126 -- -- -- -- -- -- -- -- Shares Issued in Lieu of Cash Distributions 71 -- -- -- -- -- -- -- -- Shares Redeemed......... (2,751) -- -- -- -- -- -- -- -- ---------- ---------- -------- -------- -------- -------- -------- -------- -------- Net Flex Share Transactions 3,446 -- -- -- -- -- -- -- -- ---------- ---------- -------- -------- -------- -------- -------- -------- -------- Net Change in Capital Shares (193,986) 2,529,365 110,901 187,933 31,765 (3,342) 45,281 81,952 29,495 ---------- ---------- -------- -------- -------- -------- -------- -------- --------
STATEMENTS OF CHANGES IN NET ASSETS (000) -------------------------------------------------------------------------------- U.S. TRESAURY MONEY MARKET FUND ------------------------------- 06/01/99- 12/01/98 12/01/97- 05/31/00 05/31/99 11/30/98 ---------- -------- --------- (1) Shares Issued and Redeeme Trust Shares: Shares Issued ........... 1,480,906 681,589 1,131,937 Shares Issued in Connection with Crestar Merger .. -- -- -- Shares Issued in Lieu of Cash Distributions 23 1 4 Shares Redeemed ......... (1,518,481) (620,595) (1,064,404) ---------- -------- ---------- Net Trust Share Transactions (37,552) 60,995 65,537 ---------- -------- --------- Investor Shares: Shares Issued ........... -- -- -- Shares Issued in Connection with Crestar Merger .. -- -- -- Shares Issued in Lieu of Cash Distribution -- -- -- Shares Redeemed ......... -- -- -- ---------- -------- --------- Net Investor Share Transactions -- -- -- ---------- -------- --------- Flex Shares: Shares Issued........... -- -- -- Shares Issued in Lieu of Cash Distributions -- -- -- Shares Redeemed......... -- -- -- ---------- -------- --------- Net Flex Share Transactions -- -- -- ---------- -------- --------- Net Change in Capital Shares (37,552) 60,995 67,537 ---------- -------- --------- Amounts designated as "--" are either $0 or round to $0. THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS. 37
FINANCIAL HIGHLIGHTS ------------------------------------------------------------------------------------------------------------------------------------ STI CLASSIC FUNDS FOR THE PERIODS ENDED MAY 31, (UNLESS OTHERWISE NOTED) FOR A SHARE OUTSTANDING THROUGHOUT THE PERIODS NET NET ASSET NET ASSET VALUE INVESTMENT DISTRIBUTIONS FROM VALUE END BEGINNING OF PERIOD INCOME NET INVESTMENT INCOME OF PERIOD ------------------- ---------- --------------------- --------- PRIME QUALITY MONEY MARKET FUND Trust Shares 2000 $1.00 $ 0.05 $(0.05) $1.00 1999 1.00 0.05 (0.05) 1.00 1998 1.00 0.05 (0.05) 1.00 1997 1.00 0.05 (0.05) 1.00 1996 1.00 0.05 (0.05) 1.00 Investor Shares 2000 $1.00 $ 0.05 $(0.05) $1.00 1999 1.00 0.05 (0.05) 1.00 1998 1.00 0.05 (0.05) 1.00 1997 1.00 0.05 (0.05) 1.00 1996 1.00 0.05 (0.05) 1.00 Flex Shares 2000 (A) $1.00 $ 0.03 $(0.03) $1.00 TAX-EXEMPT MONEY MARKET FUND Trust Shares 2000 $1.00 $ 0.03 $(0.03) $1.00 1999 1.00 0.03 (0.03) 1.00 1998 1.00 0.03 (0.03) 1.00 1997 1.00 0.03 (0.03) 1.00 1996 1.00 0.03 (0.03) 1.00 Investor Shares 2000 $1.00 $ 0.03 $(0.03) $1.00 1999 1.00 0.03 (0.03) 1.00 1998 1.00 0.03 (0.03) 1.00 1997 1.00 0.03 (0.03) 1.00 1996 1.00 0.03 (0.03) 1.00 TAX-FREE MONEY MARKET FUND (B) Trust Shares 2000 $1.00 $ 0.03 $(0.03) $1.00 1999** 1.00 0.01 (0.01) 1.00 For the Year Ended November 30: 1998 1.00 0.03 (0.03) 1.00 1997 1.00 0.03 (0.03) 1.00 1996 1.00 0.03 (0.03) 1.00 1995 1.00 0.03 (0.03) 1.00 Investor Shares 2000 $1.00 $ 0.03 $(0.03) $1.00 1999** 1.00 0.01 (0.01) 1.00 For the Year Ended November 30: 1998 1.00 0.03 (0.03) 1.00 1997 1.00 0.03 (0.03) 1.00 1996 1.00 0.03 (0.03) 1.00 1995 1.00 0.03 (0.03) 1.00 (DAGGER)Total return is for the period indicated and has not been annualized. * Annualized ** For the period December 1, 1998 to May 31, 1999. All ratios for the period have been annualized. (A) Commenced operations on October 4, 1999. (B) On May 24, 1999, the CrestFund Tax-Free Money Fund exchanged all of its assets and certain liabilities for shares of the Tax-Free Money Market Fund. The CrestFund Tax-Free 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.
38
------------------------------------------------------------------------------------------------------------------------------------ RATIO OF RATIO OF NET INVESTMENT RATIO OF EXPENSES TO INCOME TO NET ASSETS RATIO OF NET INVESTMENT AVERAGE NET ASSETS AVERAGE NET ASSETS TOTAL END OF EXPENSES TO INCOME TO (EXCLUDING WAIVERS (EXCLUDING WAIVERS RETURN PERIOD (000) AVERAGE NET ASSETS AVERAGE NET ASSETS AND REIMBURSEMENTS) AND REIMBURSEMENTS) -------- ----------- ------------------- ------------------ ------------------- ------------------- 5.20% $3,311,229 0.60% 5.06% 0.75% 4.91% 4.83 3,903,232 0.60 4.69 0.77 4.52 5.22 1,880,229 0.59 5.10 0.77 4.92 5.01 1,086,555 0.58 4.90 0.76 4.72 5.25 1,050,800 0.58 5.11 0.78 4.91 5.02% $1,312,653 0.77% 4.94% 0.95% 4.76% 4.66 918,100 0.77 4.52 0.97 4.32 5.04 411,821 0.76 4.93 0.98 4.71 4.84 283,544 0.75 4.74 0.97 4.52 5.08 215,696 0.75 4.94 1.00 4.69 2.93% $ 3,445 1.50%* 4.46%* 1.99%* 3.97%* 3.19% $ 755,858 0.52% 3.16% 0.66% 3.02% 2.81 641,640 0.52 2.75 0.66 2.61 3.21 448,023 0.51 3.14 0.67 2.98 3.09 333,006 0.50 3.04 0.66 2.88 3.28 273,613 0.50 3.23 0.68 3.05 3.07% $ 125,500 0.64% 3.01% 0.82% 2.83% 2.69 128,854 0.64 2.66 0.82 2.48 3.09 134,538 0.62 3.04 0.83 2.83 2.97 102,013 0.62 2.92 0.83 2.71 3.16 95,223 0.62 3.10 0.85 2.87 3.23% $ 245,243 0.51% 3.19% 0.51% 3.19% 1.27 270,431 0.67 2.51 0.82 2.36 2.97 270,899 0.66 2.92 0.81 2.77 3.06 226,837 0.66 3.02 0.81 2.87 3.14 182,320 0.66 2.88 0.81 2.73 3.26 202,333 0.66 3.19 0.81 3.04 3.07% $ 62,878 0.67% 3.17% 0.73% 3.11% 1.27 5,955 0.67 2.52 1.06 2.13 2.96 8,851 0.67 2.92 1.07 2.52 3.05 7,634 0.68 3.42 1.08 3.02 3.13 2,994 0.67 2.86 1.07 2.46 3.25 1,627 0.67 3.16 1.07 2.76
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS. 39
FINANCIAL HIGHLIGHTS (concluded) ------------------------------------------------------------------------------------------------------------------------------------ STI CLASSIC FUNDS FOR THE PERIODS ENDED MAY 31, (UNLESS OTHERWISE NOTED) FOR A SHARE OUTSTANDING THROUGHOUT THE PERIOD NET NET ASSET NET ASSET VALUE INVESTMENT DISTRIBUTIONS FROM VALUE END BEGINNING OF PERIOD INCOME NET INVESTMENT INCOME OF PERIOD ------------------- ---------- --------------------- --------- U.S. GOVERNMENT SECURITIES MONEY MARKET FUND Trust Shares 2000 $1.00 $ 0.05 $(0.05) $1.00 1999 1.00 0.04 (0.04) 1.00 1998 1.00 0.05 (0.05) 1.00 1997 1.00 0.05 (0.05) 1.00 1996 1.00 0.05 (0.05) 1.00 Investor Shares 2000 $1.00 $ 0.05 $(0.05) $1.00 1999 1.00 0.04 (0.04) 1.00 1998 1.00 0.05 (0.05) 1.00 1997 1.00 0.05 (0.05) 1.00 1996 1.00 0.05 (0.05) 1.00 U.S. TREASURY MONEY MARKET FUND (A) Trust Shares 2000 $1.00 $ 0.05 $(0.05) $1.00 1999* 1.00 0.02 (0.02) 1.00 For the Year Ended November 30: 1998 1.00 0.05 (0.05) 1.00 1997 1.00 0.05 (0.05) 1.00 1996 1.00 0.05 (0.05) 1.00 1995 1.00 0.05 (0.05) 1.00 * For the period December 1, 1998 to May 31, 1999. All ratios for the period have been annualized. (DAGGER)Total return is for the period indicated and has not been annualized. (A) On May 24, 1999, the Crestar Tax-Free Money Fund exchanged all of its assets and certain liabilities for shares of the U.S. Treasury Money Market Fund. The Crestar U.S. Treasury 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.
40
------------------------------------------------------------------------------------------------------------------------------------ RATIO OF RATIO OF NET INVESTMENT RATIO OF EXPENSES TO INCOME TO NET ASSETS RATIO OF NET INVESTMENT AVERAGE NET ASSETS AVERAGE NET ASSETS TOTAL END OF EXPENSES TO INCOME TO (EXCLUDING WAIVERS (EXCLUDING WAIVERS RETURN PERIOD (000) AVERAGE NET ASSETS AVERAGE NET ASSETS AND REIMBURSEMENTS) AND REIMBURSEMENTS) -------- ----------- ------------------- ------------------ ------------------- ------------------- 4.86% $ 468,568 0.63% 4.80% 0.74% 4.69% 4.57 404,459 0.63 4.47 0.76 4.34 5.04 377,490 0.62 4.92 0.78 4.76 4.83 344,350 0.61 4.73 0.76 4.58 5.14 325,493 0.61 5.02 0.78 4.85 4.71% $ 79,311 0.77% 4.62% 0.93% 4.46% 4.41 61,472 0.77 4.32 0.98 4.11 4.90 58,753 0.76 4.79 0.96 4.59 4.69 63,178 0.75 4.59 0.96 4.38 4.99 58,608 0.75 4.88 0.99 4.64 4.81% $ 723,277 0.63% 4.71% 0.74% 4.60% 2.08 760,833 0.68 4.10 0.83 3.95 4.89 699,923 0.66 4.77 0.81 4.62 4.91 632,381 0.65 4.82 0.80 4.67 4.80 389,051 0.66 4.69 0.81 4.54 5.29 370,454 0.66 5.16 0.81 5.01
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS. 41 NOTES TO FINANCIAL STATEMENTS -------------------------------------------------------------------------------- STI CLASSIC FUNDS MAY 31, 2000 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-five funds as of May 31, 2000: the Balanced Fund, the Capital Appreciation Fund (formerly Capital Growth Fund), the Core Equity Fund, the E-Commerce Opportunity Fund, the Growth and Income Fund, the International Equity Fund, the International Equity Index Fund, the Life Vision Moderate Growth Fund (formerly Life Vision Balanced Portfolio), the Life Vision Growth and Income Fund (formerly Life Vision Growth and Income Portfolio), the Life Vision Aggressive Growth Fund (formerly Life Vision Maximum Growth Portfolio), the Mid-Cap Equity Fund, the Small Cap Value Equity Fund (formerly Small Cap Equity Fund), the Small Cap Growth Stock Fund, the Tax Sensitive Growth Stock Fund, the Value Income Stock Fund, (collectively the "Equity Funds"), the Florida Tax-Exempt Bond Fund, the Georgia Tax-Exempt Bond Fund, the High Income Fund, the 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, 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 Money Market Fund, the U.S. Treasury Money Market Fund (collectively the "Retail Money Market Funds" or the "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"). The assets of each Fund 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 Retail Money Market Funds. The financial statements of the Equity Funds, the Fixed Income Funds and the Institutional Money Market Funds are not presented herein, but are presented separately. Effective May 1999, the Board of Trustees of the STI Classic Funds and Board of Directors of the CrestFunds Inc. ("CrestFunds") approved an Agreement and Plan of Reorganization (the "Reorganization Agreement") providing for the transfer of all assets and certain stated liabilities of the CrestFunds in exchange for the issuance of shares in the Trust 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 CrestFunds in a tax-free business combination. While each Fund now exists as a STI Classic Fund, two of the surviving funds for accounting purposes are CrestFunds. 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 for the periods prior to and ending on May 31, 1999 reflect activity beginning on the first day of the accounting survivor's fiscal year. 42 -------------------------------------------------------------------------------- SECURITY VALUATION -- Investment securities held by the Funds are stated at amortized cost, which approximates market value. 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 TO SHAREHOLDERS -- 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. RECLASSIFICATION OF COMPONENTS OF NET ASSETS -- The timing and characterization of certain income and capital gains distributions are determined annually in accordance with federal tax regulations which may differ from generally accepted accounting principles. As a result, net investment income (loss) and net realized gain (loss) on investment transactions for a reporting period may differ significantly from distributions during such period. These book/tax differences may be temporary or permanent in nature. To the extent these differences are permanent, they are charged or credited to paid-in-capital, or accumulated net realized gain, as appropriate, in the period that the differences arise. Accordingly, the following permanent differences, primarily attributable to net operating losses and the classification of short-term capital gains and ordinary income for tax purposes have been reclassified to/from the following accounts: ACCUMULATED UNDISTRIBUTED REALIZED NET INVESTMENT GAIN (LOSS) INCOME (LOSS) (000) (000) ------------ -------------- U.S. Government Securities Money Market Fund ......... (191) 191 This reclassification has no effect on net assets or net asset values per share. 43 NOTES TO FINANCIAL STATEMENTS (continued) -------------------------------------------------------------------------------- STI CLASSIC FUNDS MAY 31, 2000 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. Transactions with Affiliates: 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 the Distributor to manage the investments of repurchase agreements for the Funds. For its services the Distributor received $1,846,277 for the year ended May 31, 2000. The Trust and the Distributor are parties to a Distribution Agreement dated November 21, 1995. The Distributor does not receive any fees for its distribution services provided under this agreement. 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 1999, administrative and accounting services were provided to the CrestFunds by SEI Investments Mutual Funds Services who was entitled to receive a fee at an annual rate of .15% of the average daily net assets of the CrestFunds. 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 Adviser"), a subsidiary of SunTrust Bank, have entered into an advisory agreement dated July 15, 1993. Under terms of the agreements, the Funds are charged the following annual fees based upon average daily net assets: MAXIMUM MAXIMUM MAXIMUM TRUST INVESTOR INVESTOR FLEX FLEX ANNUAL SHARE SHARE SHARE SHARE SHARE ADVISORY MAXIMUM DISTRIBUTION MAXIMUM DISTRIBUTION MAXIMUM FEE EXPENSE FEE EXPENSE FEE EXPENSE -------- -------- ------------ ---------- ------------ ------- Prime Quality Money Market Fund .65% .60% .20% .77% .75% 1.50% Tax-Exempt Money Market Fund .55 .52 .15 .64 -- -- Tax-Free Money Market Fund .40 .51 .40 .67 -- -- U.S. Government Securities Money Market Fund .65 .63 .17 .77 -- -- U.S. Treasury Money Market Fund .65 .63 -- -- -- -- 44 -------------------------------------------------------------------------------- The Investment Adviser has 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 1999, Crestar Asset Management Company ("CAMCO") provided investment advisory services to the CrestFunds. CAMCO was paid for advisory services to each CrestFund money market fund at an annual rate of .40% of each CrestFund money market fund's average daily net assets for the first $500 million of net assets, .35% of each Fund's average daily net assets on the next $500 million of net assets, .30% of each money market fund's average daily net assets on all remaining net assets. 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. 6. Investment Transactions: Subsequent to October 31, 1999, the Funds recognized net capital losses for tax purposes that have been deferred to 2000 and can be used to offset future capital gains after May 31, 2000. The Funds had capital loss carryforwards at May 31, 2000 as follows:
POST 10/31 CARRYOVER EXPIRES EXPIRES EXPIRES EXPIRES EXPIRES EXPIRES DEFERRED 05/31/00 2003 2004 2005 2006 2007 2008 LOSS (000) (000) (000) (000) (000) (000) (000) (000) ---------- -------- -------- -------- -------- -------- -------- ---------- Prime Quality Money Market Fund $367 $110 $14 $223 $-- $-- $20 $15 Tax-Exempt Money Market Fund 32 -- 4 -- -- -- 28 3 Tax-Free Money Market Fund -- -- -- -- -- -- -- 20 U.S. Government Securities Money Market Fund -- -- -- -- -- -- -- 27
45 NOTES TO FINANCIAL STATEMENTS (concluded) -------------------------------------------------------------------------------- STI CLASSIC FUNDS MAY 31, 2000 7. CrestFunds Merger: The Board of Directors and shareholders of the CrestFunds approved a reorganization of the CrestFunds into the STI Classic Funds which took place during May 1999. The following table summarizes certain relevant information of the Funds prior to and immediately after the business combination in May 1999 and is unaudited:
SHARES OUTSTANDING SHARES ISSUED NET ASSETS NAV ON MERGER IN BUSINESS AFTER PER CRESTFUND DATE STICLASSIC FUND COMBINATION COMBINATION SHARE ------------ ----------- --------------- ------------ ----------- ----- Cash Reserve Prime Quality Money Market (2) Trust Shares 1,179,840,320 Trust Shares 1,179,992,513 $3,898,000,842 $1.00 Investor Class A 187,019,982 Investor Shares 187,134,402 897,327,829 1.00 Investor Class B (1) 68,609 Flex Shares n/a n/a n/a U.S. Treasury Money Fund (2) U.S. Treasury Money Market Trust Shares 278,919,943 Trust Shares 278,919,943 278,898,164 1.00 Investor Class A 5,967,857 Investor Shares 5,967,857 5,968,442 1.00 Tax Free Money Fund (2) Tax-Free Money Market Trust Shares 732,825,211 Trust Shares 732,825,211 732,779,926 1.00 (1) Investor Class B Shares of the CrestFunds Cash Reserve Fund were exchanged for Investor Shares of the STI Classic Prime Quality Money Market Fund. (2) Represents the accounting survivor in this business combination.
8. Concentration of Credit Risk: The Prime Quality Money Market Fund invests primarily in high quality money market instruments rated in the highest short-term rating category by Standard & Poor's Ratings Group ("S&P") or Moody's Investors Services, Inc. (Moody's) or, if not rated, are determined by the Investment Adviser to be of comparable quality. The Tax-Exempt Money Market and Tax-Free Money Market Funds invest in high quality, U.S. dollar denominated municipal securities rated in one of the two highest short-term rating categories or, if not rated, are determined by the Investment Adviser to be of comparable quality. The U.S. Government Securities Money Market and U.S. Treasury Money Market Funds invest exclusively 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. 9. Subsequent Events: Effective June 30, 2000, SunTrustBanks, Inc. reorganized all of the investment management functions of its three institutional money management units, including SunTrust Bank, into Trusco Capital Management, Inc. On May 16, 2000, the Board of Trustees of the STI Classic Funds approved the name change of the Tax-Free Money Market Fund to the Virginia Tax-Free Money Market Fund. 46 REPORT OF INDEPENDENT PUBLIC ACCOUNTANTS -------------------------------------------------------------------------------- STI CLASSIC FUNDS MAY 31, 2000 To the Shareholders and Board of Trustees of STI Classic Funds: We have audited the accompanying statements of net assets of the Prime Quality Money Market, Tax-Exempt Money Market, Tax-Free Money Market, U.S. Government Securities Money Market, and U.S. Treasury Money Market Funds of STI Classic Funds (the "Trust") as of May 31, 2000, and the related statements of operations, changes in net assets, and financial highlights for the periods presented, excluding the periods indicated below. These financial statements and financial highlights are the responsibility of the Trust's management. Our responsibility is to express an opinion on these financial statements and financial highlights based on our audits. The statements of changes for the year ended November 30, 1998 and financial highlights for the periods presented prior to May 31, 1999, for the Tax-Free Money Market and U.S. Treasury Money Market Funds, were audited by other auditors whose report, dated January 15, 1999, expressed an unqualified opinion on this information. 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 May 31, 2000, by correspondence with the custodian and the application of alternative auditing procedures with respect to unsettled securities transactions. 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 audited by us present fairly, in all material respects, the financial position of the Prime Quality Money Market, Tax-Exempt Money Market, Tax-Free Money Market, U.S. Government Securities Money Market, and U.S. Treasury Money Market Funds, of STI Classic Funds as of May 31, 2000, the results of their operations, changes in their net assets, and financial highlights for each of the periods described in the first paragraph above, in conformity with accounting principles generally accepted in the United States. ARTHUR ANDERSEN LLP Philadelphia, Pennsylvania July 18, 2000 47 NOTICE TO SHAREHOLDERS -------------------------------------------------------------------------------- STI CLASSIC FUNDS MAY 31, 2000 UNAUDITED For shareholders that do not have a May 31, 2000 tax year end, this notice is for informational purposes only. For shareholders with a May 31, 2000, please consult your tax adviser as to the pertinence of this notice. For the fiscal year ended May 31, 2000, each portfolio is designating the following items with regard to distributions paid during the year:
LONG TERM (20% RATE) ORDINARY CAPITAL GAIN INCOME TAX-EXEMPT TOTAL QUALIFYING FUND DISTRIBUTION DISTRIBUTIONS INTEREST DISTRIBUTIONS DIVIDENDS (1) ---------------- ------------ ------------- ---------- ------------- ------------- Prime Quality Money Market Fund 0.00% 100.00% 0.00% 100.00% 0.00% Tax-Exempt Money Market Fund 0.00% 0.04% 99.96% 100.00% 0.00% Tax Free Fund 0.00% 0.00% 100.00% 100.00% 0.00% U.S. Government Securities Money Market Fund 0.00% 100.00% 0.00% 100.00% 0.00% U.S. Treasury Money Market Fund 0.00% 100.00% 0.00% 100.00% 0.00% ----------------- (1) Qualifying dividends represent dividends which qualify for the corporate dividends received deduction and is reflected as a percentage of "Ordinary Income Distributions".
48 [BLANK PAGE] INVESTMENT ADVISER 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.