N-30D 1 0001.txt STI CLASSIC INSTITUTION-MONEY MARKET SAR SEMI-ANNUAL ................................................................................ FINANCIAL REPORT ................................................................................ STI CLASSIC FUNDS ................................................................................ A Family of Mutual Funds ................................................................................ CLASSIC INSTITUTIONAL CASH MANAGEMENT MONEY MARKET FUND CLASSIC INSTITUTIONAL U.S. GOVERNMENT SECURITIES MONEY MARKET FUND CLASSIC INSTITUTIONAL U.S. TREASURY SECURITIES MONEY MARKET FUND November 30, 2000 [Logo Omitted] Dear Valued STI Classic Funds' Shareholder: As of November 30, 2000, your STI Classic Funds' assets totaled $21.2 billion, an increase of 2.0% over the period ending May 31, 2000, the Funds' fiscal year end. U.S. economic expansion has now passed nine years in duration and is the longest in history. However, growth has slowed substantially and many investors are questioning whether a recession will develop. Moreover, many companies are reporting weaker earnings in this economic slowdown. It is certainly a more challenging environment for stock investors. Regardless, inflation remains low due to productivity gains and lack of corporate pricing power. As a result, longer-term interest rates have continued to decline. Thus, the Federal Reserve has substantial flexibility to decrease money market rates and provide a safety net for the economy. We also believe that most stocks have declined substantially as a result of prior Fed tightening. Thus, stock opportunities have emerged and our belief in a more diversified approach beyond just technology stocks will continue to benefit investors in this difficult environment. Sincerely, /s/signature omitted Douglas S. Phillips, CFA President, Chief Investment Officer Trusco Capital Management, Inc. 1 STATEMENT OF NET ASSETS -------------------------------------------------------------------------------- STI CLASSIC FUNDS NOVEMBER 30, 2000 CLASSIC INSTITUTIONAL CASH MANAGEMENT MONEY MARKET FUND -------------------------------------------------------------------------------- FACE AMOUNT (000) VALUE (000) -------------------------------------------------------------------------------- COMMERCIAL PAPER (18.8%) AUTOMOTIVE (3.3%) DailmerChrysler 6.820%, 04/17/01 $30,000 $ 29,259 6.830%, 05/01/01 25,000 24,318 6.430%, 05/21/01 25,000 24,236 ------------ 77,813 ------------ CONSUMER STAPLES (1.6%) Philip Morris 6.340%, 08/02/01 40,000 38,281 ------------ FINANCE (13.9%) Associates 6.700%, 12/15/00 70,000 69,823 Beta Finance 7.240%, 06/19/01 40,000 40,000 Credit Suisse First Boston 7.010%, 07/13/01 45,000 45,000 Deutsche Bank 6.810%, 04/10/01 30,000 29,298 6.430%, 05/29/01 25,000 24,201 GE Capital International Funding 6.690%, 03/02/01 45,000 44,239 6.640%, 03/09/01 25,000 24,548 6.850%, 04/27/01 30,000 29,201 Sigma Finance (A) 7.400%, 05/25/01 25,000 25,000 ------------ 331,310 ------------ Total Commercial Paper (Cost $447,404) 447,404 ------------ CORPORATE OBLIGATIONS (40.4%) BANKS (13.8%) AmSouth Bank (B) 6.640%, 05/08/01 50,000 49,993 6.660%, 08/07/01 25,000 24,997 -------------------------------------------------------------------------------- FACE AMOUNT (000) VALUE (000) -------------------------------------------------------------------------------- BANKS--CONTINUED Branch Banking & Trust (B) 6.670%, 02/01/01 $35,000 $ 34,997 6.660%, 05/29/01 40,000 40,000 Canadian Imperial Bank 7.070%, 05/03/01 40,000 39,998 First Union National Bank (B) 6.660%, 05/08/01 50,000 50,000 6.680%, 07/25/01 50,000 50,000 Wachovia Bank, MTN (B) 6.673%, 06/04/01 40,000 39,999 ------------ 329,984 ------------ ENTERTAINMENT (3.5%) Tampa Bay Devil Rays, Ser 1998 (B) 6.780%, 04/01/10 50,745 50,745 Walt Disney (A) 4.200%, 03/15/01 33,100 32,871 ------------ 83,616 ------------ FINANCE (11.8%) Associates (B) 6.850%, 08/27/01 25,000 25,015 Beta Finance, MTN 6.935%, 08/21/01 25,000 25,000 Beta Finance, MTN (B) 6.904%, 04/10/01 30,000 30,000 Credit Suisse First Boston, MTN (B) 6.630%, 10/04/01 60,000 60,000 Ford Motor Credit, MTN (B) 6.820%, 10/01/01 20,000 20,025 General Motors Acceptance 6.375%, 12/01/01 12,000 11,964 Sigma Finance 7.050%, 07/17/01 30,000 30,000 Sigma Finance (A) 6.570%, 01/10/01 20,000 20,000 Sigma Finance, MTN 6.800%, 03/30/01 30,000 30,000 2 -------------------------------------------------------------------------------- (UNAUDITED) -------------------------------------------------------------------------------- FACE AMOUNT (000) VALUE (000) -------------------------------------------------------------------------------- FINANCE--CONTINUED UBS Finance 6.475%, 01/08/01 $30,000 $ 29,999 ------------ 282,003 ------------ INVESTMENT BANKERS/BROKER DEALERS (10.9%) Bear Stearns, MTN (B) 6.690%, 06/01/01 40,000 40,000 6.720%, 06/20/01 40,000 40,000 Goldman Sachs, MTN 6.500%, 12/22/00 20,000 20,000 Merrill Lynch, MTN 6.735%, 02/28/01 25,000 24,999 7.260%, 05/15/01 50,000 49,998 Merrill Lynch, MTN, Ser B 6.750%, 09/19/01 30,000 30,000 Morgan Stanley Dean Witter (B) 6.600%, 02/28/01 55,000 55,000 ------------ 259,997 ------------ SPECIAL PURPOSE ENTITY (0.4%) Assisted Living Funding, Ser 1999 (B) 6.780%, 09/01/19 10,000 10,000 ------------ Total Corporate Obligations (Cost $965,600) 965,600 ------------ CERTIFICATES OF DEPOSIT (4.4%) Canadian Imperial Bank 6.670%, 02/12/01 40,000 39,996 Royal Bank of Canada 6.470%, 01/10/01 40,000 39,998 6.685%, 10/09/01 25,000 25,006 ------------ Total Certificates of Deposit (Cost $105,000) 105,000 ------------ -------------------------------------------------------------------------------- FACE AMOUNT (000) VALUE (000) -------------------------------------------------------------------------------- U.S. GOVERNMENT AGENCY OBLIGATIONS (10.4%) FHLB, Ser IP00 (B) 6.619%, 12/20/00 $50,000 $ 50,000 FHLB, Ser U301 (B) 6.914%, 10/11/01 50,000 50,000 FHLB, Ser X101 (B) 6.904%, 11/08/01 45,000 45,000 FHLMC, MTN 6.255%, 01/12/01 20,000 19,997 FNMA, MTN, Ser B 6.320%, 02/02/01 50,000 49,992 FNMADN 6.540%, 10/05/01 35,000 33,161 ------------ Total U.S. Governmnet Agency Obligations (Cost $248,150) 248,150 ------------ TAXABLE MUNICIPAL BONDS (3.9%) California Housing Finance Agency, Ser H, RB, MBIA (B) 6.600%, 08/01/19 30,625 30,625 Mt. Vernon, Virginia, Multi-Family Housing Notes (C) 6.670%, 01/01/10 23,000 23,000 Newport News, Virginia, Economic Development Authority, Shipbuilding Project, RB, Ser B (B) (C) 6.730%, 07/01/31 19,000 19,000 New York City, Multi-Family Housing Development Authority, West 26th St. Development Project, RB, Ser A (B) (C) 6.645%, 06/01/33 21,000 21,000 ------------ Total Taxable Municipal Bonds (Cost $93,625) 93,625 ------------ 3 STATEMENT OF NET ASSETS -------------------------------------------------------------------------------- STI CLASSIC FUNDS NOVEMBER 30, 2000 CLASSIC INSTITUTIONAL CASH MANAGEMENT MONEY MARKET FUND--CONCLUDED -------------------------------------------------------------------------------- SHARES/FACE AMOUNT (000) VALUE (000) -------------------------------------------------------------------------------- CASH EQUIVALENT (4.2%) AIM Liquid Assets Portfolio 100,000,000 $ 100,000 ---------- Total Cash Equivalent (Cost $100,000) 100,000 ---------- REPURCHASE AGREEMENTS (16.7%) ABN Amro 6.490%, dated 11/30/00, matures 12/01/00, repurchase price $112,810,095 (collateralized by FHLMC and FNMA obligations: total market value $115,046,304) (D) $112,790 112,790 Barclays Capital 6.490%, dated 11/30/00, matures 12/01/00, repurchase price $35,158,658 (collateralized by FHLMC obligation: total market value $35,856,067) (D) 35,152 35,152 Greenwich Capital 6.490%, dated 11/30/00, matures 12/01/00, repurchase price $91,531,037 (collateralized by GNMA obligations: total market value $93,347,134) (D) 91,515 91,515 Merrill Lynch 6.490%, dated 11/30/00, matures 12/01/00, repurchase price $62,677,842 (collateralized by FHLMC and FNMA obligations: total market value $64,051,899) (D) 62,667 62,667 Salomon Smith Barney 6.490%, dated 11/30/00, matures 12/01/00, repurchase price $41,409,611 (collateralized by FHLMC and FNMA obligations: total market value $43,237,282) (D) 41,402 41,402 -------------------------------------------------------------------------------- FACE AMOUNT (000) VALUE (000) -------------------------------------------------------------------------------- REPURCHASE AGREEMENTS--CONTINUED UBS Warburg 6.490%, dated 11/30/00, matures 12/01/00, repurchase price $55,936,111 (collateralized by FHLMC obligations: total market value $57,045,470) (D) $55,926 $ 55,926 ---------- Total Repurchase Agreements (Cost $399,452) 399,452 ---------- Total Investments (98.8%) (Cost $2,359,231) 2,359,231 ---------- OTHER ASSETS AND LIABILITIES, NET (1.2%) 27,575 ---------- NET ASSETS: Fund shares of the Institutional Shares (unlimited authorization -- no par value) based on 2,386,806,426 outstanding shares of beneficial interest 2,386,805 Accumulated net realized gain on investments 1 ---------- Total Net Assets 100.0% $2,386,806 ========== Net Asset Value, Offering and Redemption Price Per Share -- Institutional Shares $1.00 ========== THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS. FOR DESCRIPTIONS OF ABBREVIATIONS, PLEASE SEE PAGE 9. 4 -------------------------------------------------------------------------------- (UNAUDITED) CLASSIC INSTITUTIONAL U.S. GOVERNMENT SECURITIES MONEY MARKET FUND -------------------------------------------------------------------------------- FACE AMOUNT (000) VALUE (000) -------------------------------------------------------------------------------- U.S. GOVERNMENT AGENCY OBLIGATIONS (50.1%) FHLB 5.965%, 12/01/00 $20,000 $ 20,000 FHLB, Ser 6U01 6.580%, 02/09/01 15,000 15,000 FHLB, Ser HT00 4.950%, 12/04/00 20,000 19,998 FHLB, Ser IP00 (B) 6.619%, 12/20/00 50,000 50,000 FHLB, Ser U301 (B) 6.914%, 10/11/01 25,000 25,000 FHLMCDN 6.115%, 03/16/01 15,000 14,733 6.730%, 05/24/01 15,000 14,512 6.440%, 07/19/01 20,000 19,177 6.320%, 08/16/01 10,000 9,547 6.603%, 09/13/01 10,000 9,508 FNMA 6.445%, 02/23/01 10,000 9,996 6.625%, 03/01/01 15,000 15,000 7.000%, 05/17/01 15,000 15,002 6.500%, 11/14/01 15,000 15,011 FNMADN 6.700%, 05/10/01 10,000 9,702 6.470%, 06/06/01 15,000 14,496 6.870%, 07/27/01 15,000 14,362 6.290%, 08/01/01 15,000 14,363 6.540%, 10/05/01 20,000 18,949 SLMA, MTN 6.780%, 09/05/01 35,000 34,995 -------- Total U.S. Government Agency Obligations (Cost $359,351) 359,351 -------- -------------------------------------------------------------------------------- FACE AMOUNT (000) VALUE (000) -------------------------------------------------------------------------------- REPURCHASE AGREEMENTS (49.6%) ABN Amro 6.490%, dated 11/30/00, matures 12/01/00, repurchase price $159,344,176 (collateralized by FHLMC and FNMA obligations: total market value $162,501,765) (D) $159,316 $159,316 Deutsche Bank 6.490%, dated 11/30/00, matures 12/01/00, repurchase price $151,180,551 (collateralized by FHLMC and FNMA obligations: total market value $154,176,368) (D) 151,153 151,153 Greenwich Capital 6.490%, dated 11/30/00, matures 12/01/00, repurchase price $21,169,539 (collateralized by GNMA obligations: total market value $21,590,829) (D) 21,166 21,166 JP Morgan 6.490%, dated 11/30/00, matures 12/01/00, repurchase price $24,056,465 (collateralized by GNMA obligations: total market value $24,533,172) (D) 24,052 24,052 -------- Total Repurchase Agreements (Cost $355,687) 355,687 -------- Total Investments (99.7%) (Cost $715,038) 715,038 -------- OTHER ASSETS AND LIABILITIES, NET (0.3%) 2,310 -------- 5 STATEMENT OF NET ASSETS -------------------------------------------------------------------------------- STI CLASSIC FUNDS NOVEMBER 30, 2000 CLASSIC INSTITUTIONAL U.S. GOVERNMENT SECURITIES MONEY MARKET FUND--CONCLUDED -------------------------------------------------------------------------------- VALUE (000) -------------------------------------------------------------------------------- NET ASSETS: Fund shares of the Institutional Shares (unlimited authorization -- no par value) based on 717,367,189 outstanding shares of beneficial interest $717,367 Undistributed net investment income 6 Accumulated net realized loss on investments (25) -------- Total Net Assets 100.0% $717,348 ======== Net Asset Value, Offering and Redemption Price Per Share -- Institutional Shares $1.00 ======== THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS. FOR DESCRIPTIONS OF ABBREVIATIONS, PLEASE SEE PAGE 9. 6 -------------------------------------------------------------------------------- (UNAUDITED) CLASSIC INSTITUTIONAL U.S. TREASURY SECURITIES MONEY MARKET FUND -------------------------------------------------------------------------------- FACE AMOUNT (000) VALUE (000) -------------------------------------------------------------------------------- U.S. TREASURY OBLIGATIONS (31.9%) U.S. Treasury Bill (C) 6.362%, 12/21/00 $500,000 $ 498,242 U.S. Treasury Note 5.000%, 02/28/01 30,000 29,903 ---------- Total U.S. Treasury Obligations (Cost $528,145) 528,145 ---------- REPURCHASE AGREEMENTS (68.5%) ABN Amro 6.440%, dated 11/30/00, matures 12/01/00, repurchase price $336,509,499 (collateralized by U.S. Treasury Notes: total market value $343,179,004) (D) 336,449 336,449 Barclays Capital 6.440%, dated 11/30/00, matures 12/01/00, repurchase price $76,296,635 (collateralized by U.S. Treasury Bill: total market value $77,809,572) (D) 76,283 76,283 Deutsche Bank 6.440%, dated 11/30/00, matures 12/01/00, repurchase price $68,518,696 (collateralized by U.S. Treasury Bills, Notes and STRIPS: total market value $69,876,680) (D) 68,507 68,507 Greenwich Capital 6.440%, dated 11/30/00, matures 12/01/00, repurchase price $75,799,210 (collateralized by U.S. Treasury STRIPS: total market value $77,303,912) (D) 75,786 75,786 -------------------------------------------------------------------------------- FACE AMOUNT (000) VALUE (000) -------------------------------------------------------------------------------- REPURCHASE AGREEMENTS--CONTINUED JP Morgan 6.440%, dated 11/30/00, matures 12/01/00, repurchase price $158,912,041 (collateralized by U.S. Treasury Bill and Bond: total market value $162,061,988) (D) $158,884 $ 158,884 Merrill Lynch 6.440%, dated 11/30/00, matures 12/01/00, repurchase price $76,925,146 (collateralized by U.S. Treasury Bond: total market value $78,453,093) (D) 76,911 76,911 Salomon Smith Barney 6.440%, dated 11/30/00, matures 12/01/00, repurchase price $69,670,821 (collateralized by U.S. Treasury Bonds and Notes: total market value $71,238,653) (D) 69,658 69,658 UBS Warburg 6.440%, dated 11/30/00, matures 12/01/00, repurchase price $273,095,948 (collateralized by U.S. Treasury STRIPS: total market value $278,509,883) (D) 273,047 273,047 ---------- Total Repurchase Agreements (Cost $1,135,525) 1,135,525 ---------- Total Investments (100.4%) (Cost $1,663,670) 1,663,670 ---------- OTHER ASSETS AND LIABILITIES, NET (-0.4%) (6,174) ---------- 7 STATEMENT OF NET ASSETS -------------------------------------------------------------------------------- STI CLASSIC FUNDS NOVEMBER 30, 2000 (UNAUDITED) CLASSIC INSTITUTIONAL U.S. TREASURY SECURITIES MONEY MARKET FUND--CONCLUDED -------------------------------------------------------------------------------- VALUE (000) -------------------------------------------------------------------------------- NET ASSETS: Fund shares of the Institutional Shares (unlimited authorization -- no par value) based on 449,506,641 outstanding shares of beneficial interest $ 449,506 Fund shares of the Corporate Trust Shares (unlimited authorization -- no par value) based on 1,207,969,799 outstanding shares of beneficial interest 1,207,969 Undistributed net investment income 32 Accumulated net realized loss on investments (11) ---------- Total Net Assets 100.0% $1,657,496 ========== Net Asset Value, Offering and Redemption Price Per Share -- Institutional Shares $1.00 ========== Net Asset Value, Offering and Redemption Price Per Share -- Corporate Trust Shares $1.00 ========== THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS. FOR DESCRIPTIONS OF ABBREVIATIONS, PLEASE SEE PAGE 9. 8 -------------------------------------------------------------------------------- KEY TO ABBREVIATIONS USED IN THE STATEMENTS OF NET ASSETS FHLB Federal Home Loan Bank FHLMC Federal Home Loan Mortgage Corporation FHLMCDN Federal Home Loan Mortgage Corporation Discount Note FNMA Federal National Mortgage Association FNMADN Federal National Mortgage Association Discount Note GNMA Government National Mortgage Association MBIA Security insured by the Municipal Bond Investors Assurance Corporation MTN Medium Term Note RB Revenue Bond Ser Series SLMA Student Loan Marketing Association STRIPS Separate Trading of Registered Interest and Principal of Securities (A) Private Placement Security (B) Adjustable Rate Security. The rate reported on the Statement of Net Assets is the rate in effect on November 30, 2000. The date shown is the next scheduled reset date. (C) Zero Coupon Security. Rate shown is the effective yield at time of purchase. (D) Tri-Party Repurchase Agreement 9 This page intentionally left blank. STATEMENTS OF OPERATIONS (000) -------------------------------------------------------------------------------- STI CLASSIC FUNDS FOR THE SIX MONTH PERIOD ENDED NOVEMBER 30, 2000 (UNAUDITED)
CLASSIC CLASSIC CLASSIC INSTITUTIONAL INSTITUTIONAL INSTITUTIONAL CASH MANAGEMENT U.S. GOVERNMENT U.S. TREASURY MONEY MARKET SECURITIES MONEY SECURITIES MONEY FUND MARKET FUND MARKET FUND ---------------- ---------------- ---------------- 06/01/00- 06/01/00- 06/01/00- 11/30/00 11/30/00 11/30/00 ----------- ----------- ----------- Income: Interest Income ........................................... $81,427 $21,753 $49,816 ------- ------- ------- Expenses: Investment Advisory Fees .................................. 2,433 666 1,552 Less: Investment Advisory Fees Waived ..................... (343) (84) (144) Administrator Fees ........................................ 857 235 547 Less: Administrator Fees Waived ........................... (243) (67) (155) Transfer Agent Fees - Institutional Shares ................ 8 8 8 Transfer Agent Fees - Corporate Trust Shares .............. -- -- 8 Transfer Agent Out of Pocket Expenses ..................... 109 30 62 Printing Fees ............................................. 61 17 39 Custody Fees .............................................. 48 14 31 Professional Fees ......................................... 49 13 31 Trustee Fees .............................................. 12 4 8 Registration Fees ......................................... 61 13 39 Shareholder Service Fees .................................. -- -- 1,233 Insurance and Other Fees .................................. -- -- -- ------- ------- ------- Total Expenses ............................................ 3,052 849 3,259 ------- ------- ------- Net Investment Income ..................................... 78,375 20,904 46,557 ------- ------- ------- Net Realized Loss on Securities Sold ......................... -- -- (11) ------- ------- ------- Increase in Net Assets Resulting from Operations ............. $78,375 $20,904 $46,546 ======= ======= ======= Amounts designated as "--" are either $0 or round to $0.
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS. 11 STATEMENTS OF CHANGES IN NET ASSETS (000) -------------------------------------------------------------------------------- STI CLASSIC FUNDS FOR THE PERIODS ENDED NOVEMBER 30, 2000 AND THE YEAR ENDED MAY 31, 2000
CLASSIC CLASSIC CLASSIC INSTITUTIONAL INSTITUTIONAL INSTITUTIONAL CASH MANAGEMENT U.S. GOVERNMENT U.S. TREASURY MONEY MARKET SECURITIES MONEY SECURITIES MONEY FUND MARKET FUND MARKET FUND ------------------------- -------------------------- ------------------------- 06/01/00- 06/01/99- 06/01/00- 06/01/99- 06/01/00- 06/01/99- 11/30/00 05/31/00 11/30/00 05/31/00 11/30/00 05/31/00 ----------- ----------- ----------- ----------- ----------- ----------- Operations: Net Investment Income ............ $ 78,375 $ 118,955 $ 20,904 $ 35,721 $ 46,557 $ 68,545 Net Realized Gain (Loss) on Investments ............... -- -- -- -- (11) 3 ---------- ---------- ---------- ---------- ---------- ---------- Increase in Net Assets from Operations .............. 78,375 118,955 20,904 35,721 46,546 68,548 ---------- ---------- ---------- ---------- ---------- ---------- Distributions to Shareholders: Net Investment Income: Institutional Shares ........... (77,810) (119,528) (20,898) (35,721) (9,809) (14,676) Corporate Trust Shares ......... -- -- -- -- (36,752) (53,866) ---------- ---------- ---------- ---------- ---------- ---------- Total Distributions .............. (77,810) (119,528) (20,898) (35,721) (46,561) (68,542) ---------- ---------- ---------- ---------- ---------- ---------- Capital Transactions (1): Institutional Shares: Proceeds from Shares Issued ................ 3,028,212 7,310,322 888,894 1,986,992 990,365 1,631,329 Reinvestments of Cash Distributions ............... 54,494 76,132 5,642 12,023 8,921 14,668 Cost of Shares Repurchased ..... (3,008,150) (6,962,679) (827,820) (1,965,478) (879,479) (1,599,793) ---------- ---------- ---------- ---------- ---------- ---------- Increase in Net Assets from Institutional Share Transactions ................... 74,556 423,775 66,716 33,537 119,807 46,204 ---------- ---------- ---------- ---------- ---------- ---------- Corporate Trust Shares: Proceeds from Shares Issued ................ -- -- -- -- 1,218,429 3,577,647 Cost of Shares Repurchased ..... -- -- -- -- (1,148,991) (2,439,116) ---------- ---------- ---------- ---------- ---------- ---------- Increase in Net Assets from Corporate Trust Share Transactions ................... -- -- -- -- 69,438 1,138,531 ---------- ---------- ---------- ---------- ---------- ---------- Increase in Net Assets from Share Transactions ...... 74,556 423,775 66,716 33,537 189,245 1,184,735 ---------- ---------- ---------- ---------- ---------- ---------- Total Increase in Net Assets ............... 75,121 423,202 66,722 33,537 189,230 1,184,741 ---------- ---------- ---------- ---------- ---------- ---------- Net Assets: Beginning of Period ............ 2,311,685 1,888,483 650,626 617,089 1,468,266 283,525 ---------- ---------- ---------- ---------- ---------- ---------- End of Period .................. $2,386,806 $2,311,685 $ 717,348 $ 650,626 $1,657,496 $1,468,266 ========== ========== ========== ========== ========== ==========
12 -------------------------------------------------------------------------------- (UNAUDITED)
CLASSIC CLASSIC CLASSIC INSTITUTIONAL INSTITUTIONAL INSTITUTIONAL CASH MANAGEMENT U.S. GOVERNMENT U.S. TREASURY MONEY MARKET SECURITIES MONEY SECURITIES MONEY FUND MARKET FUND MARKET FUND ------------------------- -------------------------- ------------------------- 06/01/00- 06/01/99- 06/01/00- 06/01/99- 06/01/00- 06/01/99- 11/30/00 05/31/00 11/30/00 05/31/00 11/30/00 05/31/00 ----------- ----------- ----------- ----------- ----------- ----------- (1) Shares Issued and Redeemed: Institutional Shares: Shares Issued .................. 3,028,213 7,310,322 888,894 1,986,991 990,365 1,631,329 Shares Issued in Lieu of Cash Distributions ........ 54,494 76,132 5,642 12,023 8,921 14,668 Shares Redeemed ................ (3,008,150) (6,962,679) (827,820) (1,965,478) (879,479) (1,599,793) ---------- ---------- ---------- ---------- ---------- ---------- Net Institutional Share Transactions .............. 74,557 423,775 66,716 33,536 119,807 46,204 ---------- ---------- ---------- ---------- ---------- ---------- Corporate Trust Shares: Shares Issued .................. -- -- -- -- 1,218,429 3,577,647 Shares Redeemed ................ -- -- -- -- (1,148,991) (2,439,116) ---------- ---------- ---------- ---------- ---------- ---------- Net Corporate Trust Share Transactions ........... -- -- -- -- 69,438 1,138,531 ---------- ---------- ---------- ---------- ---------- ---------- Net Change in Capital Shares ....................... 74,557 423,775 66,716 33,536 189,245 1,184,735 ========== ========== ========== ========== ========== ========== Amounts designated as "--" are either $0 or round to $0.
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS. 13 FINANCIAL HIGHLIGHTS -------------------------------------------------------------------------------- STI CLASSIC FUNDS FOR THE PERIOD ENDED NOVEMBER 30, 2000 AND THE YEARS ENDED MAY 31, (UNLESS OTHERWISE INDICATED) FOR A SHARE OUTSTANDING THROUGHOUT THE PERIOD
NET NET ASSET NET ASSET VALUE INVESTMENT DISTRIBUTIONS FROM VALUE END TOTAL BEGINNING OF PERIOD INCOME NET INVESTMENT INCOME OF PERIOD RETURN+ ------------------- ---------- --------------------- --------------- --------- CLASSIC INSTITUTIONAL CASH MANAGEMENT MONEY MARKET FUND (A) Institutional Shares 2000* $1.00 $0.03 $(0.03) $1.00 3.24% 2000 1.00 0.05 (0.05) 1.00 5.56 1999** 1.00 0.02 (0.02) 1.00 1.58 For the years ended January 31: 1999 1.00 0.05 (0.05) 1.00 5.46 1998 1.00 0.06 (0.06) 1.00 5.66 1997 1.00 0.05 (0.05) 1.00 5.45 1996(B) 1.00 0.02 (0.02) 1.00 1.42 CLASSIC INSTITUTIONAL U.S. GOVERNMENT SECURITIES MONEY MARKET FUND (C) Institutional Shares 2000* $1.00 $0.03 $(0.03) $1.00 3.18% 2000 1.00 0.05 (0.05) 1.00 5.39 1999** 1.00 0.02 (0.02) 1.00 1.56 For the years ended January 31: 1999 1.00 0.05 (0.05) 1.00 5.30 1998 1.00 0.05 (0.05) 1.00 5.52 1997 1.00 0.05 (0.05) 1.00 5.29 1996 1.00 0.06 (0.06) 1.00 5.88 CLASSIC INSTITUTIONAL U.S. TREASURY SECURITIES MONEY MARKET FUND Institutional Shares 2000* $1.00 $0.03 $(0.03) $1.00 3.12% 2000 1.00 0.05 (0.05) 1.00 5.25 1999 1.00 0.05 (0.05) 1.00 4.97 1998 1.00 0.05 (0.05) 1.00 5.50 1997(D) 1.00 0.02 (0.02) 1.00 2.46 Corporate Trust Shares 2000* $1.00 $0.03 $(0.03) $1.00 3.02% 2000 (E) 1.00 0.05 (0.05) 1.00 5.02 -------------------------------------------------------------------------------- (UNAUDITED) RATIO OF RATIO OF NET INVESTMENT RATIO OF EXPENSES TO INCOME TO NET ASSETS RATIO OF NET INVESTMENT AVERAGE NET ASSETS AVERAGE NET ASSETS END OF EXPENSES TO INCOME TO (EXCLUDING WAIVERS (EXCLUDING WAIVERS PERIOD (000) AVERAGE NET ASSETS AVERAGE NET ASSETS AND REIMBURSEMENTS) AND REIMBURSEMENTS) ------------ ------------------ ------------------ ------------------- ------------------- CLASSIC INSTITUTIONAL CASH MANAGEMENT MONEY MARKET FUND (A) Institutional Shares 2000* $2,386,806 0.25% 6.41% 0.30% 6.36% 2000 2,311,685 0.25 5.42 0.30 5.37 1999** 1,888,483 0.25 4.79 0.35 4.69 For the years ended January 31: 1999 884,490 0.23 5.31 0.35 5.19 1998 740,837 0.20 5.52 0.36 5.36 1997 477,435 0.20 5.33 0.38 5.15 1996(B) 382,632 0.20 5.61 0.40 5.41 CLASSIC INSTITUTIONAL U.S. GOVERNMENT SECURITIES MONEY MARKET FUND (C) Institutional Shares 2000* $ 717,348 0.25% 6.26% 0.30% 6.21% 2000 650,626 0.25 5.27 0.29 5.23 1999** 617,089 0.25 4.73 0.36 4.62 For the years ended January 31: 1999 688,031 0.23 5.18 0.36 5.05 1998 789,410 0.20 5.39 0.37 5.22 1997 586,731 0.20 5.17 0.37 5.00 1996 514,870 0.20 5.72 0.37 5.55 CLASSIC INSTITUTIONAL U.S. TREASURY SECURITIES MONEY MARKET FUND Institutional Shares 2000* $ 449,528 0.26% 6.14% 0.30% 6.10% 2000 329,725 0.25 5.17% 0.31 5.11 1999 283,525 0.20 4.83 0.47 4.56 1998 140,334 0.18 5.34 0.38 5.14 1997(D) 20,238 0.09 5.27 0.51 4.85 Corporate Trust Shares 2000* $1,207,968 0.46% 5.94% 0.50% 5.90% 2000 (E) 1,138,541 0.45 4.93 0.49 4.89
(A) On May 17, 1999, the Arbor Prime Obligations Fund exchanged all of its assets and certain liabilities for shares of the Classic Institutional Cash Management Money Market Fund. The Arbor Prime Obligations Fund is the accounting survivor in this transaction, and as a result, its basis of accounting for assets and liabilities and its operating results for the periods prior to May 17, 1999 have been carried forward in these financial highlights. (B) Commenced operations on October 25, 1995. All ratios for the period have been annualized. (C) On May 24, 1999, the Arbor U.S. Government Securities Money Fund exchanged all of its assets and certain liabilities for shares of the Classic Institutional U.S. Government Securities Money Market Fund. The Arbor U.S. Government Securities Money Fund is the accounting survivor in this transaction, and as a result, its basis of accounting for assets and liabilities and its operating results for the periods prior to May 24, 1999 have been carried forward in these financial highlights. (D) Commenced operations on December 12, 1996. All ratios for the period have been annualized. (E) Commenced operations on June 3, 1999. All ratios for the period have been annualized. + Returns are for the period indicated and have not been annualized. * For the six month period ended November 30, 2000. All ratios for the period have been annualized. ** For the period February 1, 1999 to May 31, 1999. All ratios for the period have been annualized. THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS. 14 & 15 NOTES TO FINANCIAL STATEMENTS -------------------------------------------------------------------------------- STI CLASSIC FUNDS NOVEMBER 30, 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 November 30, 2000: the Balanced Fund, the Capital Appreciation 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 Aggressive Growth Fund, the Life Vision Growth and Income Fund, the Life Vision Moderate Growth Fund, the Mid-Cap Equity Fund, the Small Cap Growth Stock Fund, the Small Cap Value Equity 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 U.S. Government Securities Money Market Fund, the U.S. Treasury Money Market Fund, the Virginia Tax-Free Money Market Fund (formerly the Tax-Free Money Market Fund) (collectively the "Retail Money Market Funds"), the Classic Institutional Cash Management Money Market Fund, the Classic Institutional U.S. Government Securities Money Market Fund and the Classic Institutional U.S. Treasury Securities Money Market Fund, (collectively the "Institutional Money Market Funds" or the "Funds"). The assets of each 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 Institutional Money Market Funds. The financial statements of the Equity Funds, the Fixed Income Funds and the Retail Money Market Funds are not presented herein, but are presented separately. 2. Significant Accounting Policies: The following is a summary of significant accounting policies followed by the Trust: 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 agree- 16 -------------------------------------------------------------------------------- (UNAUDITED) ments 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. USE OF ESTIMATES -- The preparation of the financial statements in conformity with accounting principles generally accepted in the United States 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 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. The Funds have entered into an agreement with the Distributor to act as an agent in placing repurchase agreements for the Funds. For its services the Distributor received $930,925 for the six month period ended November 30, 2000. 4. Administration, Shareholder, 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. The Institutional U.S. Treasury Securities Money Market Fund has adopted a Shareholder Services Plan (the "Plan") for the Corporate Trust Shares. The Fund pays the Distributor a monthly shareholder services fee at an annual rate of .20% of the average daily net assets of the Fund's Corporate Trust Shares, which may be used by the Distributor 17 NOTES TO FINANCIAL STATEMENTS (continued) -------------------------------------------------------------------------------- STI CLASSIC FUNDS NOVEMBER 30, 2000 to provide compensation to service providers that have agreed to provide shareholder support services for their customers who own Corporate Trust Shares of the Fund. 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") have entered into an advisory agreement dated June 15, 1993. Effective June 30, 2000, SunTrust Banks, Inc. reorganized all of the investment management functions of its three institutional money management units, including SunTrust Bank, Atlanta into Trusco Capital Management, Inc. Under terms of the respective agreements, the Funds are charged the following annual fees based upon average daily net assets: MAXIMUM ANNUAL ADVISORY FEE ---------- Classic Institutional Cash Management Money Market Fund .20% Classic Institutional U.S. Government Securities Money Market Fund .20% Classic Institutional U.S. Treasury Securities Money Market Fund .20% The Investment Adviser and the Administrator have voluntarily agreed to waive all or a portion of their fees (and to reimburse Funds' expenses) in order to limit operating expenses. Fee waivers and expense reimbursements are voluntary and may be terminated at any time. 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. Concentration of Credit Risk: The Classic Institutional Cash Management Money Market Fund invests in high quality money market instruments issued by corporations and the U.S. Government and rated by one or more nationally recognized statistical rating organizations, or, if not rated, are determined by the Adviser to be of comparable quality. The Classic Institutional U.S. Government Securities Money Market Fund invests in U.S. Treasury obligations, U.S. Government subsidiary corporation securities which are backed by the full faith and credit of the U.S. government and repurchase agreements with approved dealers collateralized by U.S. Treasury securities and U.S. Government subsidiary corporation securities. The Classic Institutional U.S. Treasury Securities Money Market Fund invests in U.S. Treasury Obligations, which are backed by the full faith and credit of the U.S. Government and repurchase agreements with approved dealers collateralized by U.S. Treasury securities. 18 -------------------------------------------------------------------------------- (UNAUDITED) 7. 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 at May 31, 2000. The Funds also had capital loss carryforwards at May 31, 2000 as follows: CAPITAL LOSS POST 10/31 CARRYOVER EXPIRES EXPIRES DEFERRED 5/31/00 2003 2004 LOSS FUND (000) (000) (000) (000) ------ ------------ ------- ------- ---------- Classic Institutional U.S. Government Securities Money Market Fund $25 $11 $14 $-- Classic Institutional U.S. Treasury Securities Money Market Fund -- -- -- 3 For tax purposes, the losses in the Funds can be carried forward for a maximum of eight years to offset any net realized capital gains. 8. Shareholder Voting Results: There was a special meeting of shareholders held on October 27, 2000 and continued on November 10, 2000, at which the shareholders of the Funds were asked to consider several proposals. The following were the results of the vote by proposal: Proposal 1: To consider and act upon a proposal to elect members to the Board of Trustees of each Trust. 1. Approval of the election of Thomas Gallagher. Shares Voted % of Voted % of Total ---------------- -------------- -------------- For 9,384,024,469 99.76% 69.87% Withheld 22,376,293 0.24% 0.16% ---------------- -------------- -------------- 9,406,400,762 100.00% 70.03% 2. Approval of the election of James O. Robbins. Shares Voted % of Voted % of Total ---------------- -------------- -------------- For 9,384,046,726 99.76% 69.87% Withheld 22,354,036 0.24% 0.16% ---------------- -------------- -------------- 9,406,400,762 100.00% 70.03% 3. Approval of the election of F. Wendell Gooch. Shares Voted % of Voted % of Total ---------------- -------------- -------------- For 9,384,006,466 99.76% 69.87% Withheld 22,394,296 0.24% 0.16% ---------------- -------------- -------------- 9,406,400,762 100.00% 70.03% 4. Approval of the election of Wilton Looney Shares Voted % of Voted % of Total ---------------- -------------- -------------- For 9,379,720,005 99.72% 69.84% Withheld 26,680,757 0.28% 0.20% ---------------- -------------- -------------- 9,406,400,762 100.00% 70.04% 5. Approval of the election of Jonathan T. Walton. Shares Voted % of Voted % of Total ---------------- -------------- -------------- For 9,379,944,586 99.72% 69.84% Withheld 26,456,176 0.28% 0.19% ---------------- -------------- -------------- 9,406,400,762 100.00% 70.03% 19 NOTES TO FINANCIAL STATEMENTS (continued) -------------------------------------------------------------------------------- STI CLASSIC FUNDS NOVEMBER 30, 2000 Proposal 2: To approve the adoption of standardized investment policies by revising or eliminating certain of the Trust's current fundamental investment policies. 2.1. To revise the fundamental policies concerning diversification. CLASSIC INSTITUTIONAL CASH MANAGEMENT MONEY MARKET FUND Shares Voted % of Voted % of Total ---------------- -------------- -------------- For 2,409,886,739 99.87% 96.75% Against 2,822,322 0.11% 0.11% Abstain 312,672 0.01% 0.01% ---------------- -------------- -------------- 2,413,021,733 100.00% 96.87% CLASSIC INSTITUTIONAL U.S. TREASURY SECURITIES MONEY MARKET FUND Shares Voted % of Voted % of Total ---------------- -------------- -------------- For 902,605,228 95.60% 48.37% Against 13,028,308 1.37% 0.69% Abstain 28,481,935 3.01% 1.52% ---------------- -------------- -------------- 944,115,471 100.00% 50.59% CLASSIC INSTITUTIONAL U.S. GOVERNMENT SECURITIES MONEY MARKET FUND Shares Voted % of Voted % of Total ---------------- -------------- -------------- For 503,949,580 99.64% 73.98% Against 1,625,406 0.32% 0.23% Abstain 176,066 0.03% 0.02% ---------------- -------------- -------------- 505,751,052 100.00% 74.24% 2.2. To eliminate the policies concerning investing for control. CLASSIC INSTITUTIONAL CASH MANAGEMENT MONEY MARKET FUND Shares Voted % of Voted % of Total ---------------- -------------- -------------- For 2,409,841,587 99.86% 96.75% Against 2,853,683 0.11% 0.11% Abstain 326,463 0.01% 0.01% ---------------- -------------- -------------- 2,413,021,733 100.00% 96.87% CLASSIC INSTITUTIONAL U.S. TREASURY SECURITIES MONEY MARKET FUND Shares Voted % of Voted % of Total ---------------- -------------- -------------- For 898,781,839 95.19% 48.17% Against 14,784,892 1.56% 0.79% Abstain 30,548,740 3.23% 1.63% ---------------- -------------- -------------- 944,115,471 100.00% 50.59% CLASSIC INSTITUTIONAL U.S. GOVERNMENT SECURITIES MONEY MARKET FUND Shares Voted % of Voted % of Total ---------------- -------------- -------------- For 503,949,580 99.64% 73.98% Against 1,625,406 0.32% 0.23% Abstain 176,066 0.03% 0.02% ---------------- -------------- -------------- 505,751,052 100.00% 74.24% 20 -------------------------------------------------------------------------------- (UNAUDITED) 2.3. To revise the fundamental investment policy concerning borrowing. CLASSIC INSTITUTIONAL CASH MANAGEMENT MONEY MARKET FUND Shares Voted % of Voted % of Total ---------------- -------------- -------------- For 2,409,886,557 99.87% 96.75% Against 2,822,504 0.11% 0.11% Abstain 312,672 0.01% 0.01% ---------------- -------------- -------------- 2,413,021,733 100.00% 96.87% CLASSIC INSTITUTIONAL U.S. TREASURY SECURITIES MONEY MARKET FUND Shares Voted % of Voted % of Total ---------------- -------------- -------------- For 903,282,877 95.67% 48.41% Against 12,352,072 1.30% 0.66% Abstain 28,480,522 3.01% 1.52% ---------------- -------------- -------------- 944,115,471 100.00% 50.60% CLASSIC INSTITUTIONAL U.S. GOVERNMENT SECURITIES MONEY MARKET FUND Shares Voted % of Voted % of Total ---------------- -------------- -------------- For 503,949,580 99.64% 73.98% Against 1,625,406 0.32% 0.23% Abstain 176,066 0.03% 0.02% ---------------- -------------- -------------- 505,751,052 100.00% 74.24% 2.4. To eliminate the fundamental policies concerning pledging, mortgaging or hypothecating assets. CLASSIC INSTITUTIONAL CASH MANAGEMENT MONEY MARKET FUND Shares Voted % of Voted % of Total ---------------- -------------- -------------- For 2,409,855,196 99.86% 96.75% Against 2,853,865 0.11% 0.11% Abstain 312,672 0.01% 0.01% ---------------- -------------- -------------- 2,413,021,733 100.00% 96.87% CLASSIC INSTITUTIONAL U.S. TREASURY SECURITIES MONEY MARKET FUND Shares Voted % of Voted % of Total ---------------- -------------- -------------- For 901,079,509 95.44% 48.29% Against 12,728,789 1.34% 0.68% Abstain 30,307,173 3.21% 1.62% ---------------- -------------- -------------- 944,115,471 100.00% 50.60% CLASSIC INSTITUTIONAL U.S. GOVERNMENT SECURITIES MONEY MARKET FUND Shares Voted % of Voted % of Total ---------------- -------------- -------------- For 503,949,580 99.64% 73.98% Against 1,625,406 0.32% 0.23% Abstain 176,066 0.03% 0.02% ---------------- -------------- -------------- 505,751,052 100.00% 74.24% 21 NOTES TO FINANCIAL STATEMENTS (continued) -------------------------------------------------------------------------------- STI CLASSIC FUNDS NOVEMBER 30, 2000 2.5. To revise the fundamental policies concerning securities lending. CLASSIC INSTITUTIONAL CASH MANAGEMENT MONEY MARKET FUND Shares Voted % of Voted % of Total ---------------- -------------- -------------- For 2,409,886,557 99.87% 96.75% Against 2,822,504 0.11% 0.11% Abstain 312,672 0.01% 0.01% ---------------- -------------- -------------- 2,413,021,733 100.00% 96.87% CLASSIC INSTITUTIONAL U.S. TREASURY SECURITIES MONEY MARKET FUND Shares Voted % of Voted % of Total ---------------- -------------- -------------- For 902,470,059 95.58% 48.36% Against 13,164,890 1.39% 0.70% Abstain 28,480,522 3.01% 1.52% ---------------- -------------- -------------- 944,115,471 100.00% 50.59% CLASSIC INSTITUTIONAL U.S. GOVERNMENT SECURITIES MONEY MARKET FUND Shares Voted % of Voted % of Total ---------------- -------------- -------------- For 503,949,580 99.64% 73.98% Against 1,625,406 0.32% 0.23% Abstain 176,066 0.03% 0.02% ---------------- -------------- -------------- 505,751,052 100.00% 74.24% 2.6. To eliminate the fundamental policies concerning investment in other investment companies. CLASSIC INSTITUTIONAL CASH MANAGEMENT MONEY MARKET FUND Shares Voted % of Voted % of Total ---------------- -------------- -------------- For 2,409,886,739 99.87% 96.75% Against 2,822,322 0.11% 0.11% Abstain 312,672 0.01% 0.01% ---------------- -------------- -------------- 2,413,021,733 100.00% 96.87% CLASSIC INSTITUTIONAL U.S. TREASURY SECURITIES MONEY MARKET FUND Shares Voted % of Voted % of Total ---------------- -------------- -------------- For 902,635,901 95.60% 48.37% Against 11,638,248 1.23% 0.62% Abstain 29,841,322 3.16% 1.59% ---------------- -------------- -------------- 944,115,471 100.00% 50.59% CLASSIC INSTITUTIONAL U.S. GOVERNMENT SECURITIES MONEY MARKET FUND Shares Voted % of Voted % of Total ---------------- -------------- -------------- For 503,949,580 99.64% 73.98% Against 1,625,406 0.32% 0.23% Abstain 176,066 0.03% 0.02% ---------------- -------------- -------------- 505,751,052 100.00% 74.24% 22 -------------------------------------------------------------------------------- (UNAUDITED) 2.7. To eliminate the fundamental policies concerning short sales. CLASSIC INSTITUTIONAL CASH MANAGEMENT MONEY MARKET FUND Shares Voted % of Voted % of Total ---------------- -------------- -------------- For 2,409,872,766 99.86% 96.75% Against 2,822,504 0.11% 0.11% Abstain 326,463 0.01% 0.01% ---------------- -------------- -------------- 2,413,021,733 100.00% 96.87% CLASSIC INSTITUTIONAL U.S. TREASURY SECURITIES MONEY MARKET FUND Shares Voted % of Voted % of Total ---------------- -------------- -------------- For 900,574,783 95.38% 48.26% Against 15,060,166 1.59% 0.80% Abstain 28,480,522 3.01% 1.52% ---------------- -------------- -------------- 944,115,471 100.00% 50.60% CLASSIC INSTITUTIONAL U.S. GOVERNMENT SECURITIES MONEY MARKET FUND Shares Voted % of Voted % of Total ---------------- -------------- -------------- For 504,030,368 99.65% 73.99% Against 1,544,618 0.30% 0.22% Abstain 176,066 0.03% 0.02% ---------------- -------------- -------------- 505,751,052 100.00% 74.24% 2.8. To revise the fundamental policies concerning investment in real estate. CLASSIC INSTITUTIONAL CASH MANAGEMENT MONEY MARKET FUND Shares Voted % of Voted % of Total ---------------- -------------- -------------- For 2,409,886,739 99.87% 96.75% Against 2,822,322 0.11% 0.11% Abstain 312,672 0.01% 0.01% ---------------- -------------- -------------- 2,413,021,733 100.00% 96.87% CLASSIC INSTITUTIONAL U.S. TREASURY SECURITIES MONEY MARKET FUND Shares Voted % of Voted % of Total ---------------- -------------- -------------- For 901,217,403 95.45% 48.30% Against 13,659,535 1.44% 0.73% Abstain 29,238,533 3.09% 1.56% ---------------- -------------- -------------- 944,115,471 100.00% 50.60% CLASSIC INSTITUTIONAL U.S. GOVERNMENT SECURITIES MONEY MARKET FUND Shares Voted % of Voted % of Total ---------------- -------------- -------------- For 504,030,368 99.65% 73.99% Against 1,544,618 0.30% 0.22% Abstain 176,066 0.03% 0.02% ---------------- -------------- -------------- 505,751,052 100.00% 74.24% 23 NOTES TO FINANCIAL STATEMENTS (concluded) -------------------------------------------------------------------------------- STI CLASSIC FUNDS NOVEMBER 30, 2000 2.9. To revise the fundamental policies concerning underwriting of securities. CLASSIC INSTITUTIONAL CASH MANAGEMENT MONEY MARKET FUND Shares Voted % of Voted % of Total ---------------- -------------- -------------- For 2,412,708,879 99.98% 96.86% Against 182 --% --% Abstain 312,672 0.01% 0.01% ---------------- -------------- -------------- 2,413,021,733 100.00% 96.87% CLASSIC INSTITUTIONAL U.S. TREASURY SECURITIES MONEY MARKET FUND Shares Voted % of Voted % of Total ---------------- -------------- -------------- For 902,026,407 95.54% 48.34% Against 13,608,542 1.44% 0.72% Abstain 28,480,522 3.01% 1.52% ---------------- -------------- -------------- 944,115,471 100.00% 50.59% CLASSIC INSTITUTIONAL U.S. GOVERNMENT SECURITIES MONEY MARKET FUND Shares Voted % of Voted % of Total ---------------- -------------- -------------- For 504,030,368 99.65% 73.99% Against 1,544,618 0.30% 0.22% Abstain 176,066 0.03% 0.02% ---------------- -------------- -------------- 505,751,052 100.00% 74.24% 2.10. To revise the fundamental policies concerning purchase of commodities. CLASSIC INSTITUTIONAL CASH MANAGEMENT MONEY MARKET FUND Shares Voted % of Voted % of Total ---------------- -------------- -------------- For 2,409,886,557 99.87% 96.75% Against 2,822,504 0.11% 0.11% Abstain 312,672 0.01% 0.01% ---------------- -------------- -------------- 2,413,021,733 100.00% 96.87% CLASSIC INSTITUTIONAL U.S. TREASURY SECURITIES MONEY MARKET FUND Shares Voted % of Voted % of Total ---------------- -------------- -------------- For 901,382,795 95.47% 48.31% Against 14,252,154 1.50% 0.76% Abstain 28,480,522 3.01% 1.52% ---------------- -------------- -------------- 944,115,471 100.00% 50.59% CLASSIC INSTITUTIONAL U.S. GOVERNMENT SECURITIES MONEY MARKET FUND Shares Voted % of Voted % of Total ---------------- -------------- -------------- For 504,030,368 99.65% 73.99% Against 1,544,618 0.30% 0.22% Abstain 176,066 0.03% 0.02% ---------------- -------------- -------------- 505,751,052 100.00% 74.24% 24 -------------------------------------------------------------------------------- (UNAUDITED) 2.11. To revise the fundamental policies concerning concentration. CLASSIC INSTITUTIONAL CASH MANAGEMENT MONEY MARKET FUND Shares Voted % of Voted % of Total ---------------- -------------- -------------- For 2,409,872,948 99.86% 96.75% Against 2,822,322 0.11% 0.11% Abstain 326,463 0.01% 0.01% ---------------- -------------- -------------- 2,413,021,733 100.00% 96.87% CLASSIC INSTITUTIONAL U.S. TREASURY SECURITIES MONEY MARKET FUND Shares Voted % of Voted % of Total ---------------- -------------- -------------- For 901,899,127 95.52% 48.33% Against 12,977,811 1.37% 0.69% Abstain 29,238,533 3.09% 1.56% ---------------- -------------- -------------- 944,115,471 100.00% 50.60% CLASSIC INSTITUTIONAL U.S. GOVERNMENT SECURITIES MONEY MARKET FUND Shares Voted % of Voted % of Total ---------------- -------------- -------------- For 503,949,580 99.64% 73.98% Against 1,625,406 0.32% 0.23% Abstain 176,066 0.03% 0.02% ---------------- -------------- -------------- 505,751,052 100.00% 74.24% 25 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 an affiliate of SunTrust Banks, Inc. DISTRIBUTOR SEI Investments Distribution Co. This information must be preceded or accompanied by a current prospectus for each Fund described.