N-30D 1 sticlassicequity.txt STI CLASSIC EQUITY ANNUAL REPORT 5_31 [compass graphic omitted] ANNUAL ............................................................................... FINANCIAL REPORT ............................................................................... STI CLASSIC EQUITY FUNDS ............................................................................... A Family of Mutual Funds ............................................................................... May 31, 2001 [STI Logo Omitted] BACKED BY TRADITION. STRENGTHENED BY EXPERIENCE.SM Dear Valued STI Classic Funds' Shareholder: In last year's Annual Report letter, we noted several unusual features of the capital markets. Specifically, in equity securities, performance was narrowly concentrated in Technology related issues which rose to extraordinary valuations, while the typical stock in non-Tech sectors languished. This had the effect of penalizing investors who held diversified portfolios, as well as those who pursued strategies focused on valuation rather than price momentum. We also observed that while equity investors reached for high-risk stocks, bond investors did the opposite. In bonds, corporate issues lagged as the bond market correctly interpreted the negative impact of Federal Reserve ("Fed") tightening on company profits. Clearly there was a disconnect, with equity investors ignoring rising economic storm clouds and bond investors seeking shelter in the highest quality U.S. Treasury securities. These anomalies were changing even as we wrote last year, with a major inflection point unfolding in the markets last Spring. As a late Summer 2000 rally in Tech stocks ended, reality set in and the economy succumbed to the effect of multiple rate hikes by the Fed. Indeed, by November/December, it became reasonably clear the economy had come to an abrupt halt at least in Manufacturing, Technology and Telecommunications. Beginning in early January, the Fed had reduced interest rates very aggressively by a total of 2.5 percentage points in recognition of the slowdown in growth. Currently, the economy is muddling along, with weak corporate profits, modest inflation, and a general sense of unwinding in overbuilt sectors such as Tech/Telecomm. Importantly, the anomalies of 1999 through early 2000 reversed during the STI Classic Funds fiscal year ended May 31, 2001, with many large Tech stocks performing poorly, speculative Internet issues collapsing, and corporate bonds enjoying improved performance as investors shunned risk in equities but began to accept it in bonds. The performance of various asset categories over the fiscal year of the STI Classic Funds reflected these shifts in the markets. In bonds, returns for the 12 months ended May 31, 2001 were in a range of 5% to 13% depending on maturity, while money market instruments returned 5% to 6%. Thus, investors who utilized fixed income investments during this period of weakness in the equity markets (S&P 500 Composite Index down 10.6%, NASDAQ Index down almost 37.9%) were very well rewarded. A year ago we felt strongly that bonds and especially corporate bonds would provide good returns and significant competition for stocks. Now that this has evolved as expected, we are less bullish on bonds in the face of a likely stronger economy in 2002, but believe absolute returns will continue to be attractive for conservative investors. On the equity side, there was a substantial reversal of fortunes. The best performing categories were midsize and smaller stocks, and value stocks in all capitalization ranges. For example, the Russell 2000 Value Index was up 29.4%, the S&P Small Cap 600 Index rose 13.5%, the S&P MidCap 400 Index gained 10.9%, while the S&P 500/Barra Value Index, which captures larger value stocks, returned 7.1%. These favorable returns were caused by investors responding to compelling valuations created in smaller stocks and monetary easing. On the other side of the coin, large cap stocks and international stocks in the industrialized world had weak returns. The NASDAQ fell 37.9% for the year ended May 31, 2001, the S&P 500/Barra Growth index was down 26.0%, the Morgan Stanley EAFE Index declined 17.5%, and the S&P 500 Composite Index dropped 10.6%. In short, the equity market has shown a split personality for quite some time and while very visible large companies in Tech and Telecomm were weak, many other sectors of the market did quite well indeed. The STI Classic Fixed Income Funds provided competitive returns over the last twelve months. The STI Classic Equity Funds coped with dramatic change in the equity markets quite well due to a diversified approach that did not concentrate primarily on technology stocks. Standouts on the equity fund side were the funds focusing on pure value as well as the diversified stock funds. Each of the Fund managers has provided a recap of the fiscal year's results in the following pages as additional information. Looking ahead to the upcoming year, we are more optimistic than a year ago as many excesses have been significantly corrected. Given time, easing by the Fed has almost always been a powerful tonic for the economy and stock market. That said, the heady returns of the 1995-99 period are not coming back any time soon; investors are encouraged to adopt more reasonable return expectations for stocks over the next five years. As always, we are grateful for the continued confidence of all shareholders in the STI Classic Fund Family, and look forward to another successful year of growth. Sincerely, /s/Douglas S. Phillips Douglas S. Phillips, CFA Chief Investment Officer 1 STI CLASSIC BALANCED FUND The STI Classic Balanced Fund (the "Fund") seeks to provide capital appreciation and current income through investments in a diversified portfolio of common and preferred stocks, securities convertible into common stocks and investment grade fixed income securities. For the fiscal year ended May 31, 2001, the Fund (Trust Shares) returned 3.2% which compares very favorably to the Lipper Balanced Funds Average of 0.9%. The Fund has also performed well on a longer term basis, with a three-year annualized return of 6.4% vs. 5.1% for the Lipper Balanced Funds Average, and a five-year return of 11.4% compared to 10.1% for Lipper Balanced Funds Average. The relatively modest gain for the most recent fiscal year is of course attributable to the correction in the broad equity market which affected the Fund's holdings of common stocks. The S&P 500 Composite Index declined 10.6% over the 12-month period corresponding to the Fund's fiscal year. This correction should be viewed in the context of a very long bull market for stocks in the 1990's and a response to Fed tightening as well as extended valuations in Technology. Offsetting equity weakness was a stellar return from bonds, with the Lehman U.S. Government/Credit Index returning 12.9% over the 12 months. Thus the "balance" inherent in the Fund's approach worked exactly as intended in providing shareholders a stable return during a period of above average market volatility. Interest rates generally declined during the year as strong economic growth and Federal Reserve tightening at the beginning of the period evolved into dramatic Fed easing amidst recession concerns as the period ended. The yield curve shifted dramatically from an inverted curve (short rates higher than longer maturities) to a steep normal curve (short rates lower than longer maturities) as two-year Treasury yields declined nearly 2-1/2% and thirty-year yields declined 1/4%. Corporate bonds became very cheap relative to Treasuries during the Fed-tightening phase, and corporates lagged in performance until late 2000. This reversed significantly with the onset of monetary easing in early January, and corporates have done significantly better. For the fiscal year the Fund's overweighting in corporates and emphasis on the intermediate maturity range enhanced performance. The overweighting in intermediate maturities has been reduced but an overweighting in corporates is being maintained. Positions in mortgages were added as their relative attractiveness improved, while agency holdings have been reduced. On the equity side, emphasis has been focused on a somewhat smaller number of securities than in the past. Within sectors, several strategies have been employed, for example, within Health Care, an emphasis on service companies such as hospitals/HMOs and a deemphasis on large pharmaceutical stocks. In Energy, we have reduced exposure to lower margin commodity companies, and focused more on service companies. In Technology, the emphasis has been on software and service companies which have more stable revenue streams, while we have lowered exposure to hardware and essentially eliminated exposure to Telecomm. Finally, in Financial Services the tilt has been toward companies with visible above-average revenues and away from those with greater credit risk. Looking forward, we are encouraged by inflation data which appears to be trending downward; this should benefit both bonds and stocks. We are encouraged by aggressive Fed rate cuts which should, given time, result in a better tone to economic growth. Lastly, the fact that speculative excesses have been significantly reduced in "concept" areas like dot.coms and Telecomm is healthy, meaning investors can once again focus on companies with solid earnings. /s/L. Earl Denney L. Earl Denney, CFA Fixed Income Portfolio Manager /s/Robert J. Rhodes Robert J. Rhodes, CFA Equity Portfolio Manager 2 TRUST SHARES AVERAGE ANNUAL TOTAL RETURNS (PERIODS ENDED MAY 31, 2001) Annualized Cumulative Inception Inception One Year 3 Years 5 Years to Date to Date 3.24% 6.36% 11.39% 10.86% 114.69% [Line Graph Omitted] Plot points as follows STI Balanced S&P 500 Lehman Lipper Balanced Fund, Composite U.S. Govt. Balanced Funds Trust Shares Index Credit Index Average 1/31/94 10,000 10,000 10,000 10,000 5/31/94 9,554 9,579 9,446 9,515 5/31/95 10,387 11,510 10,543 10,704 5/31/96 12,180 14,781 10,975 12,594 5/31/97 14,210 19,126 11,842 14,689 5/31/98 17,357 24,992 13,202 17,564 5/31/99 19,263 30,253 13,738 19,194 5/31/00 20,230 33,421 13,997 20,273 5/31/01 20,885 29,895 15,799 20,459 INVESTOR SHARES AVERAGE ANNUAL TOTAL RETURNS (PERIODS ENDED MAY 31, 2001) Annualized Cumulative Inception Inception One Year 3 Years 5 Years to Date to Date 2.91% 6.04% 11.03% 10.47% 109.08% Without load -0.92% 4.70% 10.19% 9.90% 101.24% With load [Line Graph Omitted] Plot points as follows STI Balanced S&P 500 Lehman Lipper Balanced Fund, Composite U.S. Govt./ Balanced Funds Investor Shares Index Credit Index Average 1/31/94 9,625 10,000 10,000 10,000 5/31/94 9,238 9,579 9,446 9,515 5/31/95 10,004 11,510 10,543 10,704 5/31/96 11,693 14,781 10,975 12,594 5/31/97 13,595 19,126 11,842 14,689 5/31/98 16,548 24,992 13,202 17,564 5/31/99 18,319 30,253 13,738 19,194 5/31/00 19,173 33,421 13,997 20,273 5/31/01 19,731 29,895 15,799 20,459 FLEX SHARES AVERAGE ANNUAL TOTAL RETURNS (PERIODS ENDED MAY 31, 2001) Annualized Cumulative Inception Inception One Year 3 Years 5 Years to Date to Date 2.11% 5.22% 10.20% 11.06% 86.91% Without load 0.14% With load [Line Graph Omitted] Plot points as follows STI Balanced S&P Lehman Lipper Balanced Fund, Composite U.S. Govt. Balanced Funds Flex Shares Index Credit Index Average 6/30/95 10,000 10,000 10,000 10,000 5/31/96 11,401 12,549 10,327 11,550 5/31/97 13,157 16,239 11,143 13,450 5/31/98 15,900 21,219 12,422 16,078 5/31/99 17,465 25,686 12,927 17,541 5/31/00 18,142 28,375 13,171 18,486 5/31/01 18,525 25,382 14,866 18,778 Past performance is no indication of future performance. The Funds' comparative benchmarks do not include the annual operating expenses incurred by the Fund. 3 STI CLASSIC CAPITAL APPRECIATION FUND For the year ended May 31, 2001, the benchmark S&P 500 Composite Index declined 10.6% on a total return basis. The STIClassic Capital Appreciation Fund (the "Fund") was not immune from the general correction in equity prices, but nonetheless did quite well in preserving shareholder capital with a return of -3.7% (Trust Shares). For the six year period May 31, 1995 - 2000 which corresponds to most of the late 90's exceptional gains as well as the decline in 2000, the Fund's Trust Shares returned 17.1%, which is only slightly below the 17.3% of the S&P 500 Composite Index. Thus, the Fund has provided competitive returns in all kinds of market conditions. Achievement of good relative performance over the last twelve months has been a product of numerous specific initiatives in managing the Fund. First, the number of securities held has been reduced by over half. The goal is to focus more intently on fewer names with the most attractive investment outlook. Parallel with this was elimination of smaller cyclical and value type holdings with assets redeployed into larger companies with higher growth characteristics. In restructuring the Fund we have paid careful attention to tax effects, with an eye toward minimizing the impact of capital gains distributions which result from realized gains. At the industry sector level, certain specific themes were implemented as a result of our focus on "bottoms-up" stock selection. This process emphasizes companies which have positive earnings trends driven by strong fundamentals. For example, within the Retailing sector, prosperity is unevenly spread and we have had success in stocks like BJ's Wholesale Club, a warehouse discounter which benefits from economy minded shoppers. Within Health Care, we substantially reduced weightings in the large pharmaceutical stocks and reinvested the money in service companies such as Tenet Healthcare and medical device manufacturers including Biomet and St. Jude Medical. Within Energy, we moved away from low return commodity producers and have focused more on balanced integrateds such as Exxon Mobil and service contractors like Halliburton. Similarly, in the Financial Services segment, we reduced exposure to mega-banks which have credit risk in a soft economic environment. Instead, we like financials with smaller credit risk and strong revenue growth, names such as Freddie Mac, USA Education, MBNA, and Washington Mutual, as well as insurance companies including Aflac and American International Group. Finally, in the Technology sector, we eliminated positions related to telecomm capital spending and substantially reduced exposure to cyclical hardware manufacturers. Instead we have emphasized software stocks including Microsoft and Citrix, and service companies like Electronic Data Systems and Sungard Data Systems. As we look forward, Fed easing should enable a gradual recovery in the economy a few months down the road. That said, the recovery may unfold unevenly, as some segments in technology and capital investment face a hangover from over investment in 1998-2000. As the recovery progresses, we may gradually shift the posture of the Fund from its current somewhat defensive mode to one which includes more companies with cyclical operating leverage. Regardless, the emphasis in stock selection will continue to be toward companies with leadership positions within their industries, strong profitability, and above average growth in their core competency. We believe that earnings growth is a primary driver of share price performance, thus the portfolio should exhibit a superior relative earnings profile over the entire economic cycle. /s/Robert J. Rhodes Robert J. Rhodes, CFA Portfolio Manager 4 TRUST SHARES AVERAGE ANNUAL TOTAL RETURNS (PERIODS ENDED MAY 31, 2001) Annualized Cumulative Inception Inception One Year 3 Years 5 Years to Date to Date -3.74% 7.32% 14.82% 14.40% 231.69% [Line Graph Omitted] Plot points as follows STI Classic Capital S&P Lipper Appreciation 500 Large-Cap Fund, Composite Core Funds Trust Shares Index Classification 7/31/92 10,000 10,000 10,000 5/31/93 11,203 10,885 11,051 5/31/94 11,638 11,345 11,554 5/31/95 12,409 13,631 13,323 5/31/96 16,004 17,505 16,867 5/31/97 19,951 22,652 20,878 5/31/98 25,938 29,599 26,561 5/31/99 30,445 35,830 30,906 5/31/00 33,179 39,581 34,445 5/31/01 31,938 35,405 30,667 INVESTOR SHARES AVERAGE ANNUAL TOTAL RETURNS (PERIODS ENDED MAY 31, 2001) Annualized Cumulative Inception Inception One Year 3 Years 5 Years to Date to Date -4.38% 6.66% 14.09% 14.03% 224.96% Without load -7.97% 5.31% 13.22% 13.55% 212.76% With load [Line Graph Omitted] Plot points as follows STI Classic Capital S&P Lipper Appreciation 500 Large-Cap Fund, Composite Core Funds Investor Shares Index Classification 6/30/92 9,625 10,000 10,000 5/31/93 11,206 11,329 11,448 5/31/94 11,571 11,808 11,969 5/31/95 12,257 14,187 13,801 5/31/96 15,711 18,219 17,473 5/31/97 19,441 23,576 21,628 5/31/98 25,023 30,807 27,515 5/31/99 29,327 37,292 32,016 5/31/00 31,758 41,196 35,682 5/31/01 30,367 36,850 31,768 FLEX SHARES AVERAGE ANNUAL TOTAL RETURNS (PERIODS ENDED MAY 31, 2001) Annualized Cumulative Inception Inception One Year 3 Years 5 Years to Date to Date -4.79% 6.13% 13.55% 15.77% 140.62% Without load -6.98% With load [Line Graph Omitted] Plot points as follows STI Classic Capital S&P Lipper Appreciation 500 Large-Cap Fund, Composite Core Funds Flex Shares Index Classification 5/31/96 12,387 12,549 12,302 5/31/97 15,266 16,239 15,227 5/31/98 19,559 21,219 19,372 5/31/99 22,786 25,686 22,541 5/31/00 24,557 28,375 25,122 5/31/01 23,380 25,382 22,366 Past performance is no indication of future performance. The Funds' comparative benchmarks do not include the annual operating expenses incurred by the Fund. 5 STI CLASSIC E-COMMERCE OPPORTUNITY FUND The E-Commerce Opportunity Fund (the "Fund") invests in companies which are expected to benefit substantially from electronic commerce and achieve above average growth. While several other Internet-labeled funds invest primarily in pure Internet stocks, the Fund diversifies its holdings across multiple e-commerce market segments. The first segment includes pioneering companies whose business model was founded on an emerging e-commerce market. The second segment consists of technology companies that provide infrastructure to support e-commerce transactions. The third segment is comprised of well-established, non-technology companies which are deemed to be especially well positioned to benefit from e-commerce. For the year ended May 31, 2001, the Fund returned -15.9% (Trust Shares). The benchmark, the Goldman Sachs E-Commerce Index, returned -42.4%, while the Lipper Science and Technology Funds Objective returned -44.8% during the same period. The negative returns of the E-Commerce Opportunity Fund were driven by sharp declines in revenue growth rates of most U.S. technology and Internet-related companies. Following a surge in demand for technology and Internet products and services in 1999, many U.S. businesses decided to slow their information technology spending during 2000 and 2001. At the same time that demand for technology products was slowing, new supply of tech products was surging forward. As a result, the supply and demand picture for most U.S. technology-related industries turned very negative during the past year. Although the E-Commerce Opportunity Fund was not immune to these negative factors, it did manage to outperform its benchmark. The positive relative performance can be attributed to a defensive portfolio posture during the past year. As the tech market declined, the Fund manager overweighted the third-tier, the non-tech companies, in an effort to cushion the portfolio from the problems being experienced by technology and Internet stocks. The Fund increased its holdings, for example, in Enron and Dynegy, energy and electric power companies that trade commodities through electronic exchanges. It added to other non-tech companies, like American Express, a financial services company that benefited from strong trends in electronic payments by consumers. Looking forward, we are still concerned about the fundamentals of the technology sector in general. No demand catalyst, such as a major new software product, appears on the horizon to stimulate demand. At the same time, supply is not being reduced quickly enough to give surviving companies pricing power with their products. As a result, we continue to position the portfolio defensively. Nevertheless, we remain excited about the long-term growth prospects for many technology companies. /s/Alan Kelley Alan Kelley Portfolio Manager 6 [Line Graph Omitted] Plot points as follows TRUST SHARES AVERAGE ANNUAL TOTAL RETURNS (PERIODS ENDED MAY 31, 2001) Annualized Cumulative Inception Inception One Year to Date to Date -15.94% 18.88% 33.40% STI E-Commerce Goldman Sachs Opportunity Fund, E-Commerce Trust Shares Index 9/30/99 10,000 10,000 5/31/00 15,870 12,616 5/31/01 13,340 7,273 FLEX SHARES AVERAGE ANNUAL TOTAL RETURNS (PERIODS ENDED MAY 31, 2001) Annualized Cumulative Inception Inception One Year to Date to Date -16.82% 17.90% 31.57% -18.49% With load [Line Graph Omitted] Plot points as follows STI E-Commerce Goldman Sachs Opportunity Fund, E-Commerce Flex Shares Index 9/30/99 10,000 10,000 5/31/00 15,818 12,616 5/31/01 13,157 7,273 Past performance is no indication of future performance. The Funds' comparative benchmarks do not include the annual operating expenses incurred by the Fund. (1) Commenced operations on September 30, 1999. (2) Commenced operations on January 24, 2000. *Flex Shares performance for the period prior to January 24, 2000 reflects the performance of the Fund's Trust Shares. The performance of the Trust Shares has not been adjusted to reflect the higher internal operating expenses of the Flex Shares. If it had, performance would have been lower than that shown. 7 STI CLASSIC GROWTH AND INCOME FUND The STI Classic Growth and Income Fund (the "Fund") invests primarily in equity securities, including common stock and listed ADRs of domestic and foreign companies with market capitalizations of at least $1 billion. The Fund is managed in a large capitalization, value-oriented style, competing against funds with a similar objective as categorized under Lipper's "Large Cap Value Equity" peer group. The Fund's management team utilizes a proprietary quantitative screening process to identify attractive ideas. The team then evaluates each potential idea with careful fundamental research, incorporating the depth of its collective investment experience, and constructs a diversified portfolio that seeks competitive long-term appreciation with below average risk. The past twelve months will certainly not be remembered with fondness by most investors, but it has been an inevitable period of recalibrating gross market imbalances built up over the past several years. In last year's report, we highlighted some of the valuation polarities within the market, and noted the economic and market road map to addressing them. We believe most of this analysis proved to be on point, and caused us to adopt a more defensive posture within the Fund starting late last Spring. Because our strategy is to dampen volatility but not avoid it, the Fund was not spared from the ravages to the market over the past six months. While defensive minded, we have remained fully invested throughout this downturn. The Fund's emphasis on diversification and our willingness to hold reasonable exposure to the Technology and Health Care sectors, both of which boosted results during 1999 and early last year, detracted from performance during the past 6 months. As a result, we have handily outperformed the S&P 500 Composite Index, which returned -10.6%, but have lagged the S&P 500/Barra Value Index, which returned 7.1%, and our Lipper peer group, which returned 0.2%, over that latest interval. We believe next year's road map will take investors in a different and more satisfying direction compared with the recent past. Optimism about and confidence in the potential rebound in the economy, corporate profits and the equity markets appear to be waning and the recovery timeframe appears to be elongating, adjustments we view as necessary in bringing investor expectations back into alignment with the likely course of events. Currently the economy continues to deteriorate and the corporate earnings picture is generally bleak. Despite aggressive moves by the Fed since January in lowering interest rate levels, it is far too early to gauge stimulative impact or benefit. The future impact also is likely to be less pronounced than in previous economic cycles due to massive shifts in the cycle itself and in the capital structure of the U.S. equity markets. Rather we envision an economy that takes most if not all of 2001 to digest widespread over capacity and corporate inventory overhang and depress profits from last year's record levels. The subsequent recovery also should be muted by historical standards, but the combination of correcting markets and a resumption in economic and profit growth, coupled with a contained inflation picture, should produce the necessary ingredients to push equity returns back into positive territory. We would caution that the moderate power of these ingredients and the market's valuation levels, which are favorable but not depressed, do not offer a compelling prospect for a return to the outsized gains of the late 1990's. Still, the environment has shifted enough so that we believe a more offensively minded portfolio structure will capture greater opportunities in the year ahead, and we are transitioning the Fund in that direction. The Fund remains well diversified and slightly tilted toward market sectors that can benefit from moderate economic recovery. We thank all of our investors for your continued vote of confidence in our approach. /s/Jeffrey E. Markunas Jeffrey E. Markunas, CFA Portfolio Manager 8 TRUST SHARES AVERAGE ANNUAL TOTAL RETURNS (PERIODS ENDED MAY 31, 2001) Annualized Cumulative Inception Inception One Year 3 Years 5 Years to Date to Date 0.11% 6.40% 13.26% 13.89% 209.13% [Line Graph Omitted] Plot points as follows STI Classic Growth S&P 500/ and Income BARRA Fund, Value S&P 500 Trust Shares Index Composite Index 9/30/92 10,000 10,000 10,000 5/93 11,363 11,497 10,982 5/94 11,462 12,353 11,446 5/95 13,204 14,461 13,753 5/96 16,420 18,272 17,661 5/97 20,070 22,924 22,854 5/98 25,406 29,554 29,863 5/99 29,364 33,422 36,149 5/00 30,571 34,285 39,934 5/01 30,605 36,729 35,721 INVESTOR SHARES AVERAGE ANNUAL TOTAL RETURNS (PERIODS ENDED MAY 31, 2001) Annualized Cumulative Inception Inception One Year 3 Years 5 Years to Date to Date -0.07% 6.30% 13.18% 13.42% 176.17% Without load -3.82% 4.95% 12.33% 12.89% 165.82% With load [Line Graph Omitted] Plot points as follows STI Classic Growth S&P 500/ and Income BARRA Fund, Value S&P 500 Investor Shares Index Composite Index 5/31/93 9,625 10,000 10,000 5/94 9,712 10,744 10,423 5/95 11,190 12,578 12,523 5/96 13,909 15,892 16,082 5/97 17,004 19,938 20,811 5/98 21,506 25,705 27,193 5/99 24,874 29,069 32,917 5/00 25,849 29,819 36,364 5/01 25,831 31,946 32,527 FLEX SHARES AVERAGE ANNUAL TOTAL RETURNS (PERIODS ENDED MAY 31, 2001) Annualized Cumulative Inception Inception One Year 3 Years 5 Years to Date to Date -0.77% 5.50% 12.36% 14.57% 130.92% Without load -2.70% With load [Line Graph Omitted] Plot points as follows STI Classic Growth S&P 500/ and Income BARRA Fund, Value S&P 500 Flex Shares Index Composite Index 4/30/95 10,000 10,000 10,000 5/95 10,293 10,445 10,399 5/96 12,721 13,197 13,354 5/97 15,440 16,557 17,281 5/98 19,403 21,346 22,581 5/99 22,267 24,140 27,334 5/00 22,959 24,763 30,196 5/01 22,783 26,528 27,010 Past performance is no indication of future performance. The Funds' comparative benchmarks do not include the annual operating expenses incurred by the Fund. *Previously the Fund's return had been compared to the S&P 500 Composite Index, but the advisor believes that the S&P 500/BARRAValue Index, because of its greater emphasis on large cap value stocks, more accurately reflects the type of securities in which the Fund invests. 9 STI CLASSIC INTERNATIONAL EQUITY FUND The STI Classic International Equity Fund (the "Fund") invests in equity securities of foreign issuers and seeks to provide long-term capital appreciation. We strive to obtain investment results that outperform the international markets as measured by the MSCI EAFE Index. The Fund focuses on sector and company fundamentals specifically looking for companies that are leaders in their industry, produce quality products, and have sound financial positions. Our goal is to find companies that have improving growth characteristics at attractive valuation levels relative to their global peers. Fund performance outperformed both the MSCI EAFE Index and the Lipper International Funds Objective (which returned -17.9%) for the 12 month trailing period ending May 31, 2001. The Fund outperformed due primarily to strategic positioning, putting more emphasis on reasonable valuation in an environment that favored the value style. The Fund's performance for the year June 2000 to May 2001 was -10.8% (Trust Shares) versus the MSCI EAFE return of -17.5%. The Fund preserved capital very well relative to its benchmark and relative to the Lipper International Funds Objective outperforming the benchmark by 6.7% and the average international fund by 7.1%. During the period, the Materials and Energy industries performed best. Above-average oil prices and accelerating earnings supported results in the energy sector. More defensive consumer staples and utilities stocks were flat over the period. Technology and Telecomm growth stocks fell heavily, and country performance reflected sector results. For example, Spain performed ahead of other European markets because it has no major technology companies and the main Spanish telecomm companies performed better than their European peers. Sweden and Finland declined mainly due to their large telecomm companies. The correction in telecomm stocks also hurt stock market returns in Germany, France, and the U.K. Like the U.S., Europe has also been decelerating. After rising last year, Euro-zone growth looks to slip in 2001. Business confidence has declined and production is slowing. Consumers have adopted a more cautious stance since borrowing costs and oil prices have moved higher. While business activity has softened, exporters have been supported by weakness in the Euro. Domestic demand in Europe should be helped by lower trending energy costs, and tax cuts in Germany, France, and Italy. Japan's economy has remained stagnant. Despite low interest rates, fiscal stimulus and a competitive boost from a weak yen, Japan has not been able to improve private sector activity. Many sectors in Japan continue to have difficulty. A deceleration is under way throughout Asia. However, growth in Asian economies should outpace all other regions through 2001. With a new Prime Minister, real reform could come to Japan in the near future and unleash the competitive manufacturing prowess of Japanese corporations. Emerging Markets had a difficult year, with the benchmark MSCI Emerging Markets Index returning -22.6% for the period. Slower global economic growth has led to greater risk aversion causing many investors to stay away from emerging markets. We realize the past couple of years have been a difficult period for investors in international stock markets. Except for brief periods, the current cycle of foreign stocks trailing the performance of U.S. stocks started in early 1995. The historic pattern suggests that this period may be followed by superior performance in the future as capital markets have strong tendencies to "revert to normal" over time. Successful results for the Fund will continue to be based on a dedication to in-depth fundamental research on companies brought to light via a disciplined quantitative process. Inherent in management of the Fund is a process designed to quickly identify sell candidates where earnings trends are beginning to deteriorate. Our approach should provide investors the opportunity to participate in the growth of the international markets while maintaining sensible valuation. We feel confident that the disciplined execution of our process should lead to strong investment results over time. Stock market declines of the past year have started to bring valuations down toward more attractive levels. Relative to U.S. stocks, many international stocks are still well undervalued, and we believe that this valuation disparity will continue to narrow. Falling interest rates, better stock price valuations, and continued structural reforms give us reason to believe that much of the pain is now behind us. Although international markets are likely to be characterized by volatility in the short term, we are confident that long-term investors should continue to be rewarded for their patience. /s/Chad Deakins Chad Deakins, CFA Portfolio Manager 10 TRUST SHARES AVERAGE ANNUAL TOTAL RETURNS (PERIODS ENDED MAY 31, 2001) Annualized Cumulative Inception Inception One Year 3 Years 5 Years to Date to Date 10.79% -2.98% 6.53% 12.28% 108.27% [Line Graph Omitted] Plot points as follows STI Classic MSCI EAFE International Index Equity Fund, in Trust Shares U.S.$ 1/31/95 10,000 10,000 5/31/95 11,637 10,862 5/31/96 15,179 12,021 5/31/97 18,714 12,928 5/31/98 22,807 14,365 5/31/99 21,112 14,991 5/31/00 23,346 17,560 5/31/01 20,827 14,493 INVESTOR SHARES AVERAGE ANNUAL TOTAL RETURNS (PERIODS ENDED MAY 31, 2001) Annualized Cumulative Inception Inception One Year 3 Years 5 Years to Date to Date -11.13% -3.37% 6.12% 11.91% 103.93% Without load -14.49% -4.59% 5.32% 11.24% 96.35% With load [Line Graph Omitted] Plot points as follows STI Classic MSCI EAFE International Index Equity Fund, in Investor Shares U.S.$ 1/31/95 9,625 10,000 5/31/95 11,201 10,862 5/31/96 14,585 12,021 5/31/97 17,918 12,928 5/31/98 21,750 14,365 5/31/99 20,049 14,991 5/31/00 22,084 17,560 5/31/01 19,626 14,493 FLEX SHARES AVERAGE ANNUAL TOTAL RETURNS (PERIODS ENDED MAY 31, 2001) Annualized Cumulative Inception Inception One Year 3 Years 5 Years to Date to Date -11.71% -4.03% 5.38% 11.28% 96.75% Without load -13.31% With load [Line Graph Omitted] Plot points as follows STI Classic MSCI EAFE International Index Equity Fund, in Flex Shares U.S.$ 1/31/95 10,000 10,000 5/31/95 11,637 10,862 5/31/96 15,139 12,021 5/31/97 18,467 12,928 5/31/98 22,260 14,365 5/31/99 20,372 14,991 5/31/00 22,283 17,560 5/31/01 19,674 14,493 Past performance is no indication of future performance. The Funds' comparative benchmarks do not include the annual operating expenses incurred by the Fund. *For periods prior to December 1995, when the Fund began operating, the performance quoted reflects performance of the adviser's similarly managed collective investment fund, adjusted to reflect fees and expenses of the Fund's Trust Shares. Trust Shares have lower expenses than Investor or Flex Shares, which results in higher performance for the Flex and Investor Shares than it would have been had the expenses of these classes have been applied. The collective investment fund was not a registered mutual fund, and therefore, was not subject to certain investment and tax restrictions which may have adversely affected performance. 11 STI CLASSIC INTERNATIONAL EQUITY INDEX FUND The STI Classic International Equity Index Fund (the "Fund") invests in equity securities of foreign issuers and seeks to closely match the returns of the MSCI EAFE-GDP Weighted Index, the Fund's benchmark. The Fund's performance for the year June 2000 to May 2001 was -18.9% (Trust Shares) compared to -18.7% for the MSCI EAFE-GDP. The MSCI EAFE (capitalization weighted) index return for the same period was -17.5%. To help minimize tracking error, we hold approximately 570 stocks in the portfolio. We have continued to have a low tracking error even though world equity market volatility has increased. Tracking error represents a measure of how closely a portfolio matches the return of its benchmark. 2000 and into 2001 was one of the periodic "bad" periods for international equities. The GDP Weighted Index's weak performance can be attributed to three main factors: higher interest rates, the collapse in the Technology and Telecomm sectors, and higher oil prices. These factors combined to push up inflation and slow economic growth around the world. Poor equity performance was not just in selected international markets. The NASDAQ 100 Index ended the one-year period down 45.8% and the S&P 500 Composite Index down 10.6%. Almost all developed market countries ended the period with negative returns. Looking forward, there are several major themes which will continue to influence the international equity stock performance: 1) The private sector is gaining influence in place of governments and the free market is helping resources be better allocated; 2) Productivity is continuing to increase throughout the world; 3) Adoption of U.S. style pension and retirement systems is increasing internationally, placing more assets into the global equity markets; and, 4) Industry consolidation is occurring on a global basis. Larger companies no longer compete in just one country, but compete globally. The Fund is a vehicle for participation in the global growth of non-U.S. markets. Because the benefits of more efficient capital markets are still growing overseas, we continue to suggest international equities offer significant potential for U.S. investors. The stock market declines of the past year have started to bring valuations down toward more attractive levels. Relative to U.S. stocks, many international stocks are still well undervalued, and we believe that this valuation disparity will continue to narrow. Falling interest rates, better stock price valuations, and continued structural reforms give us reason to believe that much of the pain is now behind us. Although international markets are likely to be characterized by volatility in the short term, we are confident that long-term investors should continue to be rewarded for their patience. /s/Chad Deakins Chad Deakins, CFA Portfolio Manager 12 TRUST SHARES AVERAGE ANNUAL TOTAL RETURNS (PERIODS ENDED MAY 31, 2001) Annualized Cumulative Inception Inception One Year 3 Years 5 Years to Date to Date -18.90% 1.45% 7.14% 6.81% 58.47% [Line Graph Omitted] Plot points as follows STI Classic MSCI EAFE-GDP International Index Weighted Equity Fund, in U.S.$ Trust Shares (Price return) 6/30/94 10,000 10,000 5/31/95 10,331 10,343 5/31/96 11,291 11,256 5/31/97 12,135 12,067 5/31/98 15,269 14,401 5/31/99 16,470 15,010 5/31/00 19,659 17,900 5/31/01 15,944 14,558 INVESTOR SHARES AVERAGE ANNUAL TOTAL RETURNS (PERIODS ENDED MAY 31, 2001) Annualized Cumulative Inception Inception One Year 3 Years 5 Years to Date to Date -19.31% 0.97% 6.67% 6.35% 53.67% Without load -22.35% -0.30% 5.86% 5.76% 47.90% With load [Line Graph Omitted] Plot points as follows STI Classic MSCI EAFE-GDP International Index Weighted Equity Fund, in U.S.$ Investor Shares (Price return) 6/30/94 9,625 10,000 5/31/95 9,905 10,343 5/31/96 10,786 11,256 5/31/97 11,554 12,067 5/31/98 14,472 14,401 5/31/99 15,533 15,010 5/31/00 18,462 17,900 5/31/01 14,897 14,558 FLEX SHARES AVERAGE ANNUAL TOTAL RETURNS (PERIODS ENDED MAY 31, 2001) Annualized Cumulative Inception Inception One Year 3 Years 5 Years to Date to Date -19.84% 0.31% 5.98% 6.37% 44.61% Without load -21.43% With load [Line Graph Omitted] Plot points as follows STI Classic MSCI EAFE-GDP International Index Weighted Equity Fund, in U.S.$ Flex Shares (Price return) 6/30/95 10,000 10,000 5/31/96 10,911 11,020 5/31/97 11,610 11,814 5/31/98 14,455 14,099 5/31/99 15,421 14,696 5/31/00 18,202 17,525 5/31/01 14,591 14,253 Past performance is no indication of future performance. The Funds' comparative benchmarks do not include the annual operating expenses incurred by the Fund. 13 STI CLASSIC LIFE VISION AGGRESSIVE GROWTH FUND The STI Classic Life Vision Aggressive Growth Fund (the "Fund") invests in a diversified mix of STI Classic Funds of varying investment disciplines. Underlying funds vary by manager, investment style, company capitalization, and company domicile. The Fund's management team utilizes a proprietary process that seeks to identify and set the Fund asset allocation mix in a manner that achieves high capital appreciation. Investment is primarily in STI Classic Funds that invest in equities. The past twelve months has been an inevitable period of re-calibrating gross market imbalances built up over the last several years. The relatively modest gain for the most recent fiscal year is of course attributable to the correction in the broad market, which affected the Funds' holdings of underlying common stocks. The S&P 500 composite Index declined 10.6% over the 12-month period corresponding to the Funds' fiscal year. This correction should be viewed in the context of a very long bull market for stocks in the 1990's and a response to Fed tightening as well as extended valuations in Technology. Offsetting equity weakness was a stellar return from bonds, with the Lehman Government/Credit Index returning 12.9% over the 12 months. Thus the diversification inherent in the Fund's approach worked exactly as intended in providing shareholders a stable return during a period of above average market volatility. For the fiscal year the Fund's balance across equity styles and capitalization's enhanced performance and brought considerable stability of returns. With Value eclipsing Growth, and Small Cap stocks substantially outperforming Large Cap stocks, the fully diversified Fund achieved good relative returns as the market broadened. Additionally, some underlying funds outperformed benchmarks and peers by substantial margins. The most significant contributors were the STIClassic Value Income Fund (Trust Shares), which returned 14.09%, and the STI Classic Small Cap Value Equity Fund (Trust Shares), which returned 35.9%. As we look forward, the Fed easing should enable a gradual recovery in the economy. However, unlike prior rebounds, this recovery may unfold unevenly, as some segments in Technology and capital investment face a hangover from over investment in 1998-2000. The Fund, with its broad diversification, should provide investors comfort and stable relative returns in this uncertain environment. Trusco Capital Management, Inc. 14 TRUST SHARES AVERAGE ANNUAL TOTAL RETURNS (PERIODS ENDED MAY 31, 2001)
Annualized Cumulative Inception Inception One Year 3 Years 5 Years to Date to Date 3.07% 5.83% 10.91% 11.47% 149.33% [Line Graph Omitted] Plot points as follows STI Classic Life Vision Aggressive 61/15/12/10/2 Morgan Stanley Growth Fund, Hybrid Russell 1000 MSCI EAFE Russell 2000 Salomon Russell Trust Shares Benchmark Index Index Index 3-Month T-Bill Mid-Cap Index 12/31/92 10,000 10,000 10,000 10,000 10,000 10,000 10,000 5/31/93 10,697 10,719 10,420 12,519 10,588 10,125 10,590 5/31/94 10,840 11,376 10,850 14,218 11,511 10,454 11,183 5/31/95 12,108 13,011 12,908 14,922 12,697 10,998 12,953 5/31/96 14,858 16,230 16,711 16,514 17,255 11,601 16,650 5/31/97 17,216 19,358 21,243 17,761 18,458 12,211 19,526 5/31/98 21,038 23,986 27,767 19,735 22,378 12,851 24,862 5/31/99 22,557 27,219 33,406 20,595 21,776 13,462 27,102 5/31/00 24,192 30,565 37,402 24,125 23,934 14,163 30,696 5/31/01 24,935 28,159 33,374 19,910 25,296 14,984 32,209
Past performance is no indication of future performance. The Funds' comparative benchmarks do not include the annual operating expenses incurred by the Fund. *For periods prior to June 1997, when the Fund began operating, the performance quoted reflects past performance of Crestar Bank's similarly managed asset allocation model, adjusted to reflect the Fund's fees and expenses. The asset allocation model was not a registered mutual fund, and therefore was not subject to certain investment and tax restrictions which may have adversely affected performance. 15 STI CLASSIC LIFE VISION GROWTH AND INCOME FUND The STI Classic Life Vision Growth and Income Fund (the "Fund") invests in a diversified mix of STI Classic Funds of varying investment disciplines. Underlying funds vary by manager, investment style, company capitalization, and company domicile. The Fund's management team utilizes a proprietary process that seeks to identify and set the Fund asset allocation mix in a manner that achieves long-term capital appreciation. Investment is primarily in STI Classic Funds that invest in equities with some exposure to funds that invest in bonds. The past twelve months has been an inevitable period of re-calibrating gross market imbalances built up over the last several years. The relatively modest gain for the most recent fiscal year is of course attributable to the Correction in the broad market, which affected the Funds' holdings of underlying common stocks. The S&P 500 Composite Index declined 10.6% over the 12-month period corresponding to the Funds' fiscal year. This correction should be viewed in the context of a very long bull market for stocks in the 1990's and a response to Fed tightening as well as extended valuations in Technology. Offsetting equity weakness was a stellar return from bonds, with the Lehman Government/Credit Index returning 12.9% over the 12 months. Thus the diversification inherent in the Fund's approach worked exactly as intended in providing shareholders a stable return during a period of above average market volatility. For the fiscal year the Fund's balance across equity styles and capitalizations enhanced performance and brought considerable stability of returns. With Value eclipsing Growth, and Small Cap stocks substantially outperforming Large Cap stocks, the fully diversified Fund achieved good relative returns as the market broadened. Emphasis on income producing stocks generally classified as Value stocks, as well as on bonds, was particularly helpful to the Fund. Additionally, some underlying funds outperformed benchmarks and peers by substantial margins. The most significant contributors were the STIClassic Value Income Fund (Trust Shares), which returned 14.09%, and the STIClassic Small Cap Value Equity Fund (Trust Shares), which returned 35.9%. As we look forward, the Fed easing should enable a gradual recovery in the economy. However, unlike prior rebounds, this recovery may unfold unevenly, as some segments in Technology and capital investment face a hangover from over investment in 1998-2000. The Fund, with its broad diversification and holdings in income producing securities, should provide investors comfort and stable relative returns in this uncertain environment. Trusco Capital Management, Inc. 16
TRUST SHARES AVERAGE ANNUAL TOTAL RETURNS (PERIODS ENDED MAY 31, 2001) Annualized Cumulative Inception Inception One Year 3 Years 5 Years to Date to Date 6.31% 6.26% 9.88% 9.95% 122.28% [Line Graph Omitted] Plot points as follows STI Classic Life 40/17/16/- Merrill 1-5 Year Lehman US Morgan Vision Growth and /13/12/2 US Government/ Government/ Stanley Russell Income Fund, Hybrid Russell 1000 Credit Credit MSCI EAFE Russell Mid-Cap Trust Shares Benchmark Index Index Index Index 2000 Index Index 12/31/92 10,000 10,000 10,000 10,000 10,000 10,000 10,000 10,000 5/31/93 10,551 10,786 10,420 10,368 10,541 12,519 10,588 10,590 5/31/94 10,664 11,376 10,850 10,550 10,648 14,218 11,511 11,183 5/31/95 11,875 12,859 12,908 11,441 11,884 14,922 12,697 12,953 5/31/96 13,878 15,337 16,711 12,017 12,371 16,514 17,255 16,650 5/31/97 15,688 17,705 21,243 12,849 13,349 17,761 18,458 19,526 5/31/98 18,529 21,264 27,767 13,845 14,881 19,735 22,378 24,862 5/31/99 19,760 23,499 33,406 14,575 15,485 20,595 21,776 27,102 5/31/00 20,908 25,898 37,402 15,085 15,778 24,125 23,934 30,696 5/31/01 22,227 25,160 33,374 16,782 17,808 19,910 25,296 32,209
Past performance is no indication of future performance. The Funds' comparative benchmarks do not include the annual operating expenses incurred by the Fund. *For periods prior to June, 1997, when the Fund began operating, the performance quoted reflects performance of Crestar Bank's similarly managed asset allocation model, adjusted to reflect the Fund's fees and expenses. The asset allocation model was not a registered mutual fund, and therefore was not subject to certain investment and tax restrictions which may have adversely affected performance. 17 STI CLASSIC LIFE VISION MODERATE GROWTH FUND The STI Classic Life Vision Moderate Growth Fund (the "Fund") invests in a diversified mix of STI Classic Funds of varying investment disciplines. Underlying funds vary by manager, investment style, company capitalization, and company domicile. The Fund's management team utilizes a proprietary process that seeks to identify and set the Fund asset allocation mix in a manner that achieves competitive long-term appreciation with income, and below average risk. Investment is primarily in STI Classic Funds that invest primarily in equity securities and fixed income securities. The past twelve months has been an inevitable period of re-calibrating gross market imbalances built up over the last several years. The relatively modest gain for the most recent fiscal year is of course attributable to the correction in the broad market, which affected the Funds' holdings of underlying common stocks. The S&P 500 Composite Index declined 10.6% over the 12-month period corresponding to the Funds' fiscal year. This correction should be viewed in the context of a very long bull market for stocks in the 1990's and a response to Fed tightening as well as extended valuations in Technology. Offsetting equity weakness was a stellar return from bonds, with the Lehman Government/Credit Index returning 12.9% over the 12 months. Thus the diversification inherent in the Fund's approach worked exactly as intended in providing shareholders a stable return during a period of above average market volatility. For the fiscal year the Fund's exposure to bonds was the most stabilizing factor in achieving a positive portfolio return. Additionally, diversification across equity styles and capitalization's enhanced performance and brought considerable stability to equity return as well. With Value eclipsing Growth, and Small Cap stocks substantially outperforming Large Cap stocks, the fully diversified Fund achieved good relative returns as the market broadened. Additionally, some underlying funds outperformed benchmarks and peers by substantial margins. The most significant contributors were the STI Classic Value Income Fund (Trust Shares), which returned 14.09%, and the STIClassic Small Cap Value Equity Fund (Trust Shares), which returned 35.9%, and of course the STIClassic Investment Grade Bond Fund (Trust Shares), which returned 13.55%. As we look forward, the Fed easing should enable a gradual recovery in the economy. However, unlike prior rebounds, this recovery may unfold unevenly, as some segments in Technology and capital investment face a hangover from over investment in 1998-2000. The Fund, with its broad diversification and balanced holdings in income producing securities, should provide investors comfort and stable relative returns in this uncertain environment. Trusco Capital Management, Inc. 18
TRUST SHARES AVERAGE ANNUAL TOTAL RETURNS (PERIODS ENDED MAY 31, 2001) Annualized Cumulative Inception Inception One Year 3 Years 5 Years to Date to Date 5.28% 5.40% 8.90% 8.96% 105.86% [Line Graph Omitted] Plot points as follows STI Classic Life 27/26/22/- Merrill 1-5 Year Lehman US Morgan Vision Moderate 14/10/1 US Government/ Government/ Stanley Russell Growth Fund, Hybrid Russell 1000 Credit Credit MSCI EAFE Russell Mid-Cap Trust Shares Benchmark Index Index Index Index 2000 Index Index 12/31/92 10,000 10,000 10,000 10,000 10,000 10,000 10,000 10,000 5/31/93 10,539 10,738 10,420 10,368 10,541 12,519 10,588 10,590 5/31/94 10,601 11,244 10,850 10,550 10,648 14,218 11,511 11,183 5/31/95 11,774 12,572 12,908 11,441 11,884 14,922 12,697 12,953 5/31/96 13,439 14,466 16,711 12,017 12,371 16,514 17,255 16,650 5/31/97 15,013 16,317 21,243 12,849 13,349 17,761 18,458 19,526 5/31/98 17,580 19,056 27,767 13,845 14,881 19,735 22,378 24,862 5/31/99 18,718 20,725 33,406 14,575 15,485 20,595 21,776 27,102 5/31/00 19,553 22,481 37,402 15,085 15,778 24,125 23,934 30,696 5/31/01 20,585 22,672 33,374 16,782 17,808 19,910 25,296 32,209
Past performance is no indication of future performance. The Funds' comparative benchmarks do not include the annual operating expenses incurred by the Fund. *For periods prior to June, 1997, when the Fund began operating, the performance quoted reflects performance of Crestar Bank's similarly managed asset allocation model, adjusted to reflect the Fund's fees and expenses. The asset allocation program was not a registered mutual fund, and therefore was not subject to certain investment and tax restrictions which may have adversely affected performance. 19 STI CLASSIC MID-CAP EQUITY FUND The STI Classic Mid-Cap Equity Fund (the "Fund") seeks capital appreciation by investing primarily in the stocks of companies with a market capitalization between $500 million and $10 billion or in the S&P 400 Mid Cap Index (the "Index"). Mid cap securities with a strong growth history are the primary consideration for this investment philosophy. These companies are evaluated relative to their industry sector and the market in general. Each industry sector is considered in relation to the business cycle, and the Fund maintains large positions in the sectors which appear to perform best in the given cycle. Stocks that fall within favored sectors are analyzed based on fundamentals--the quality of earnings, dependability of growth rates, and relative attractiveness of price/earnings ratios. For the fiscal year ending May 31, 2001 the Fund returned -6.9% (Trust Shares) versus a return of 10.9% for the S&P 400 Mid-Cap Index. Mid cap stocks continued to outperform large cap stocks as the S&P 500 Composite Index returned -10.6% over the period. The Fund's bias toward growth stocks worked to its detriment over the last twelve months. The market has been experiencing an unprecedented period of outperformance by value versus growth. For example, the Russell Mid-Cap Value Index returned 20.9% over the last twelve months versus a -24.3% return for the Russell Mid Cap Growth Index. The Fund's performance fell in between the performance of the Lipper Mid Cap Growth Index of -18.4% and the Lipper Mid Cap Core Index of 3.2%. The Technology sector had the greatest adverse impact on performance over the last year. A modest overweight combined with a focus on higher growth names negatively impacted returns. The Fund's lack of exposure to Utilities also adversely impacted performance versus the Index as the sector had a good year and represents 8% of the Index. Health Care stocks had a positive impact on performance, especially in 2000. The Fund's health care services stocks fared particularly well. Looking forward, we expect the relative performance of growth to improve versus value after what has been a difficult year for growth managers. Mid cap stocks continue to perform well versus large cap stocks and we feel that this can continue given attractive valuations relative to large caps and increased visibility/sponsorship for mid caps as an asset class. With a median market cap of $2.6 billion, the Fund is well positioned to participate in continued strong performance of mid cap stocks. We continue to focus on buying well-managed companies in attractive industries. The median stock in the portfolio is trading at 18 times next year's earnings and the median long-term growth rate is 20%. We think these valuations offer a compelling investment opportunity. We expect to increase our exposure to more cyclical companies at the expense of our Health Care overweighting as the economy moves back to normal growth levels. /s/John Hamlin John Hamlin, CFA Portfolio Manager 20 TRUST SHARES AVERAGE ANNUAL TOTAL RETURNS (PERIODS ENDED MAY 31, 2001) Annualized Cumulative Inception Inception One Year 3 Years 5 Years to Date to Date -6.82% 4.05% 9.28% 11.17% 117.20% [Line Graph Omitted] Plot points as follows STI Mid-Cap Equity Fund, S&P 400 Trust Shares Mid-Cap Index 2/28/94 10,000 10,000 5/31/94 9,735 9,516 5/31/95 10,958 10,803 5/31/96 13,756 13,873 5/31/97 15,714 16,397 5/31/98 19,035 21,294 5/31/99 19,342 23,837 5/31/00 23,036 28,950 5/31/01 21,442 32,111 INVESTOR SHARES AVERAGE ANNUAL TOTAL RETURNS (PERIODS ENDED MAY 31, 2001) Annualized Cumulative Inception Inception One Year 3 Years 5 Years to Date to Date -7.34% 3.58% 8.80% 10.63% 109.80% Without load -10.82% 2.28% 7.96% 10.06% 101.92% With load [Line Graph Omitted] Plot points as follows STI Mid-Cap Equity Fund, S&P 400 Investor Shares Mid-Cap Index 1/31/94 9,625 10,000 5/31/94 9,471 9,381 5/31/95 10,603 10,650 5/31/96 13,247 13,676 5/31/97 15,070 16,164 5/31/98 18,168 20,992 5/31/99 18,381 23,498 5/31/00 21,790 28,539 5/31/01 20,191 31,655 FLEX SHARES AVERAGE ANNUAL TOTAL RETURNS (PERIODS ENDED MAY 31, 2001) Annualized Cumulative Inception Inception One Year 3 Years 5 Years to Date to Date -7.88% 2.97% 8.14% 10.47% 81.53% Without load -9.40% With load [Line Graph Omitted] Plot points as follows STI Mid-Cap Equity Fund, S&P 400 Flex Shares Mid-Cap Index 6/30/95 10,000 10,000 5/31/96 11,839 12,339 5/31/97 13,385 14,584 5/31/98 16,035 18,940 5/31/99 16,125 21,201 5/31/00 19,006 25,749 5/31/01 17,508 28,561 Past performance is no indication of future performance. The Funds' comparative benchmarks do not include the annual operating expenses incurred by the Fund. 21 STI CLASSIC SMALL CAP GROWTH STOCK FUND The Small Cap Growth Fund's investment philosophy is based on the premise that a portfolio of small cap stocks with positive earnings trends, reasonable valuation, and strong business fundamentals will provide superior returns over time. We believe in executing a disciplined and objective investment process and controlling risk through a broadly diversified portfolio. In selecting stocks for the Fund, we look for companies with strong current and projected earnings growth, improving profitability trends, a strong balance sheet, and high quality earnings. Next, we analyze the business fundamentals of each company to help determine the sustainability of a company's earnings growth. Lastly, we focus on those companies with the best combination of the above characteristics and purchase them at reasonable valuations. This past year was marked by a fierce bear market in technology stocks as the NASDAQ Composite lost 37.9% of its value. Most Technology, Telecomm, and internet stocks sagged as it became evident that most of these companies would not be able to achieve the overly optimistic growth projections implied by their valuations. Also, the economy finally began to wilt following several years of impressive economic growth. This rapid economic deterioration prompted the Fed to lower short-term interest rates starting in January 2001. This environment was most difficult for Technology issues and growth-oriented managers that invest in those types of stocks. Not all the news was bad over the past year, as the broader measures of the stock market like small, mid-cap, and value-oriented stocks stabilized in mid-2000 and actually advanced over the past year. For the fiscal year ending May 31, 2001, small cap stocks finished on a strong note in the face of these deteriorating economic conditions. The S&P 600 Small Cap and Russell 2000 Indices finished the year with 13.5% and 5.7% gains, respectively. Meanwhile, the S&P 500 Composite Index of larger companies was down -10.6%, marking the second consecutive year (ending May 31) small cap stocks have out-performed the large cap index. As we anticipate a recovery of the economy later this year, small cap stocks should continue to perform well; small cap stocks have historically produced their strongest gains in the early stages of an economic recovery. The Small Cap Growth Fund (the "Fund") produced respectable investment results in a difficult year for growth investors. For the year ending May 31, the Fund (Trust Shares) returned 8.3%, compared to the 5.7% return of Russell 2000 and the 13.5% return of the S&P 600 Small Cap. Furthermore, these results compare favorably to mutual fund peers as the Lipper Small Cap Growth Average return was -8.5% and the Lipper Small Cap Core Average return was 4.5%. The Fund's solid performance results can be attributed to several factors. Increased exposure in the Financial sector benefited investment results as a slowing economy and the prospect of lower interest rates fueled a rise in stock prices. Doral Financial, a mortgage loan originator, was a top performer in this sector with a return of 130% over the past year. The Fund has consistently maintained an over-weighted position in consumer cyclical issues, with a particular concentration in retail and homebuilding stocks. Three of the Fund's top performing stocks were Chico's FAS, up 156%, Christopher & Banks, up 240%, and Circuit City Stores - Carmax, up 243%. Homebuilding stocks were very strong performers over the past year as the Fund benefited from positions in Toll Brothers, Pulte Homes, and NVR. Recently, we have aggressively scaled back our commitment to this area in response to the rising cost of inputs such as lumber and indications of slower home sales. A couple of additional specific names which have bolstered the Fund's results are Cryolife and Shaw Group. Cryolife, up 148% over the past year, is the market leader in biological implantable devices. The company has produced some revolutionary new products which are just starting to penetrate the healthcare market. One of these products is called "Bio-Glue", an internal suture which has been approved for aortic dissections and other surgical applications. Using Bio-Glue as a suture for life threatening surgical procedures can reduce blood loss and speed recovery time. Shaw Group, up 148%, is a provider of complete piping systems and engineering and construction services to the power generation/process industries. The earnings growth driver for Shaw is much-needed expansion of power generation capacity due to the lack of investment over the last ten years. Recently we have placed particular emphasis on the Health Care and Capital Goods sectors where many companies have accelerating earnings momentum. Also, we continue to maintain a modest over-weighting in the Technology sector as we are finding many companies with 20% to 30% long term growth rates at very reasonable valuations. We expect that technology fundamentals will trough in the 3rd quarter of this year, as excess inventories should be absorbed in the market and capital spending patterns turn more positive. The critical driver will be a return of consumer and corporate demand. Lastly, we have been scaling back our over-weighted exposure to the energy sector as recent drilling activity has spurred a rise in inventories and a corresponding drop in the price of oil and gas commodities. Looking forward, we believe small cap stocks will continue to perform well versus large caps as the economy emerges from the current slowdown. Small caps are still undervalued relative to large caps and earnings growth should be stronger over the foreseeable future. The Fund's management team is committed to managing the money of our shareholders in a prudent and disciplined fashion. Our investment approach should provide our investors the opportunity to participate in the high growth sectors of the small cap market as well as moderate growers in sectors like Consumer and Financial Services. We believe that disciplined execution of our process will lead to consistently above average investment results over time. /s/Mark D. Garfinkel Mark D. Garfinkel, CFA Portfolio Manager 22 TRUST SHARES AVERAGE ANNUAL TOTAL RETURNS (PERIODS ENDED MAY 31, 2001) Annualized Cumulative Inception Inception One Year to Date to Date 8.33% 30.16% 100.83% [Line Graph Omitted] Plot points as follows STI Classic Small Cap S&P 600 Growth Stock Fund, Small Cap Trust Shares Index 10/31/98 10,000 10,000 5/31/99 12,070 11,168 5/31/00 15,358 12,748 5/31/01 16,637 14,473 INVESTOR SHARES AVERAGE ANNUAL TOTAL RETURNS (PERIODS ENDED MAY 31, 2001) Annualized Cumulative Inception Inception One Year to Date to Date 7.89% 29.88% 99.68% Without load 3.85% 28.01% 92.18% With load [Line Graph Omitted] Plot points as follows STI Classic Small Cap S&P 600 Growth Stock Fund, Small Cap Investor Shares Index 10/31/98 9,625 10,000 5/31/99 11,618 11,168 5/31/00 14,758 12,748 5/31/01 15,922 14,473 FLEX SHARES AVERAGE ANNUAL TOTAL RETURNS (PERIODS ENDED MAY 31, 2001) Annualized Cumulative Inception Inception One Year to Date to Date 7.19% 28.83% 95.46% Without load 5.21% With load [Line Graph Omitted] Plot points as follows STI Classic Small Cap S&P 600 Growth Stock Fund, Small Cap Flex Shares Index 10/31/98 10,000 10,000 5/31/99 12,004 11,168 5/31/00 15,119 12,748 5/31/01 16,206 14,473 Past performance is no indication of future performance. The Funds' comparative benchmarks do not include the annual operating expenses incurred by the Fund. (1) Commenced operations on December 12, 1999. *Investor Shares performance for the periods prior to December 12, 1999 reflects the performance of the Fund's Trust Shares. The performance of the Trust Shares has not been adjusted to reflect the higher internal operating expenses of the Investor Shares. If it had, performance would have been lower than that shown. 23 STI CLASSIC SMALL CAP VALUE EQUITY FUND The past 12 months were favorable for investments in small cap value stocks. The financial markets returned to the realization that earnings, cash flow, dividend yield, and valuation were important factors in determining an equity's share price. Many Technology, Telecomm, dot-com, and Biotech shares saw their prices deflated over the past year as investors focused on more traditional valuation measures. The STI Classic Small Cap Value Equity Fund (the "Fund") remained true to its discipline of buying quality small cap value stocks that are selling at cheap valuations. Our typical investment is a respectable quality company with a market capitalization of $900 million. It pays an attractive dividend yield and sells at the lower one-third of its historical valuation. We do extensive analysis to identify catalysts that will return the shares to their average or higher valuation over the next 18-24 months. Typical catalyst events include new management, new products, financial restructuring, acquisitions, insider ownership, improved attitude toward public shareholders and, in numerous instances, being acquired. We also focus on the potential negatives with each investment to identify and control risks. The Fund had a very good year, up 35.9% (Trust Shares), which was well ahead of 29.4% for the Russell 2000 Value Index. The top performers over the last year were in a variety of diverse industries. These included: Arch Coal, Student Loan, Phillips-Van Heusen, Quixote, and Ball. We also had some disappointments over the last year with investments in Polaroid, Falcon Products, NUI, Fedders and Alpharma. Presently, the Fund is positioned slightly defensive as there is tremendous uncertainty about how long the present global economic slowdown will persist. We think monetary and fiscal stimulus being provided to the economy will eventually prevail, however, we want to see signs of economic improvement before getting more aggressive in stock selection. The portfolio is currently selling for 1.6 times book value and 13 times trailing earnings. The dividend yield is 2% and comprises approximately 100 securities. Valuations are still inexpensive but not as cheap as they were a year ago when the market was ignoring small cap value stocks. Still, we believe the wind is still at our back in terms of the relative attraction of small cap value opportunities. /s/Brett Barner Brett Barner CFA Portfolio Manager 24 TRUST SHARES AVERAGE ANNUAL TOTAL RETURNS (PERIODS ENDED MAY 31, 2001) Annualized Cumulative Inception Inception One Year 3 Years 5 Years to Date to Date 35.90% 1.72% 11.54% 15.33% 161.95% [Line Graph Omitted] Plot points as follows STI Classic Small cap Russell Value Equity Fund, 2000 Value Trust Shares Index 8/31/94 10,000 10,000 5/31/95 11,432 10,471 5/31/96 15,171 13,272 5/31/97 20,138 16,009 5/31/98 24,888 20,279 5/31/99 20,229 18,346 5/31/00 19,274 18,298 5/31/01 26,194 23,682 FLEX SHARES AVERAGE ANNUAL TOTAL RETURNS (PERIODS ENDED MAY 31, 2001) Annualized Cumulative Inception Inception One Year 3 Years 5 Years to Date to Date 34.30% 0.65% 10.61% 14.62% 151.15% Without load 32.30% With load Line Graph Omitted] Plot points as follows STI Classic Small cap Russell Value Equity Fund, 2000 Value Flex Shares Index 8/31/94 10,000 10,000 5/31/95 11,432 10,471 5/31/96 15,171 13,272 5/31/97 20,138 16,009 5/31/98 24,627 20,279 5/31/99 19,819 18,346 5/31/00 18,700 18,298 5/31/01 25,114 23,682 Past performance is no indication of future performance. The Funds' comparative benchmarks do not include the annual operating expenses incurred by the Fund. *For periods prior to January 1997, when the Fund began operating, the performance quoted reflects performance of the adviser's similarly managed collective investment fund, adjusted to reflect fees and expenses of the Fund's Trust Shares. Flex Shares performance for periods from January 1997 to June 1997 reflect performance of the Trust Shares. Trust Shares have lower expenses than Flex Shares, which results in higher performance for Flex Shares than it would have been had the expenses of that class been applied. The collective investment fund was not a registered mutual fund, and therefore was not subject to certain investment and tax restrictions which may have adversely affected performance. 25 STI CLASSIC TAX SENSITIVE GROWTH STOCK FUND The STI Classic Tax Sensitive Growth Stock Fund (the "Fund") seeks to provide long-term growth of capital by investing in a diversified portfolio of common stocks of financially strong U.S. growth companies across all industry sectors with a large capitalization emphasis. The Fund seeks to minimize taxable distributions. A number of tax management tools are used such as low turnover, tax swaps, offsetting gains with losses, and selling high cost lots. This year marks the fourth year in a row where the Fund has paid out zero taxable distributions. It is not only what you make; it is what you keep after taxes that counts. The twelve months ending May 31, 2001 were very challenging for the Fund and the markets. The total return for the Fund was -19.2% (Trust Shares). The S&P 500 Composite Index had a total return including reinvested dividends of -10.6%. Our emphasis on the Technology sector hurt results for the period. For example, the technology laden NASDAQ 100 Stock Index had a total return of -45.8% for the twelve month period ended May 31, 2001. It is probable that recent easing of monetary policy by the Fed will stimulate economic activity going forward. Our emphasis on large capitalization growth stocks should be rewarded in a more positive market environment. /s/Jonathan Mote Jonathan Mote, CFA Portfolio Manager 26 TRUST SHARES AVERAGE ANNUAL TOTAL RETURNS (PERIODS ENDED MAY 31, 2001) Annualized Cumulative Inception Inception One Year 3 Years 5 Years to Date to Date -19.21% 4.92% 13.18% 13.65% 99.95% [Line Graph Omitted] Plot points as follows STI Classic Tax Sensitive S&P 500 Growth Stock Fund, Composite Trust Shares Index 12/31/95 10,000 10,000 5/31/96 10,767 10,966 5/31/97 13,971 14,190 5/31/98 17,311 18,542 5/31/99 22,402 22,445 5/31/00 24,750 24,795 5/31/01 19,995 22,179 FLEX SHARES AVERAGE ANNUAL TOTAL RETURNS (PERIODS ENDED MAY 31, 2001) Annualized Cumulative Inception Inception One Year 3 Years 5 Years to Date to Date -20.06% 4.06% 12.62% 13.13% 95.07% Without load -21.66% With load [Line Graph Omitted] Plot points as follows STI Classic Tax Sensitive S&P 500 Growth Stock Fund, Composite Flex Shares Index 12/31/95 10,000 10,000 5/31/96 10,767 10,966 5/31/97 13,971 14,190 5/31/98 17,311 18,542 5/31/99 22,309 22,445 5/31/00 24,401 24,795 5/31/01 19,506 22,179 Past performance is no indication of future performance. The Funds' comparative benchmarks do not include the annual operating expenses incurred by the Fund. *For periods prior to December 1998, when the Fund began operating, the performance quoted reflects performance of the adviser's similarly managed collective investment fund, adjusted to reflect the Fund's fees and expenses. The collective investment fund was not a registered mutual fund and therefore was not subject to certain investment and tax restrictions which may have adversely affected performance. 27 STI CLASSIC VALUE INCOME STOCK FUND The STI Classic Value Income Fund (the "Fund") seeks to provide current income with capital appreciation by investing primarily in dividend paying equity securities. The Fund's investment philosophy is based on our belief that dividends are not only an important component of total return but also a very useful tool that can give us information regarding a company's future earnings potential. The Fund employs a very disciplined and methodical approach to portfolio construction. The bottom-up process has three key factors to consider in all investment decisions: 1) Minimum dividend criteria, 2) Low historical valuation and 3) A catalyst for improving fundamental momentum which could cause an upward revaluation in the company's share price. Our process seeks dividend-paying stocks that are trading at the lower end of their historical valuation ranges. The companies that we then focus on are in the midst of fundamental change that we expect will re-ignite investor interest in the near term. They tend to exhibit "Value" characteristics such as low price-to-earnings ratios, low price-to-sales ratios and generally have higher dividend yields. The Fund's return from June 2000 to May 2001 was 14.1% (Trust Shares). The Fund significantly outperformed the S&P/ Barra Value Index which returned 7.1% as well as the S&P 500 Composite Index which returned -10.6%. The Fund's strict and rigorous application of our Value methodology certainly benefited performance over the last year as investors became more concerned with the risk and valuations of many of the more speculative growth stocks. Value stocks that were eschewed by investors in the prior growth stock phase were suddenly attractive as investments once again. The Fund's significant holdings in many cyclical sectors such as Basic Materials and Industrials were major contributors to performance over the last year. Health Care, Utilities and Insurance holdings added to performance as well. The market has clearly broadened out over the last twelve months as investors reposition their portfolios away from the more speculative issues toward more traditional "old economy" type companies. We believe this is a healthy process for the market as a whole as investors become more diversified. The Fund will continue to emphasize companies that are attractively valued and exhibit catalysts for fundamental improvement. As the economy moves through the current slowdown, those companies with strong balance sheets and seasoned management teams will weather the storm better than others. We intend to be fully positioned in those names that will be the ultimate beneficiaries of the very aggressive monetary and fiscal policies currently in place. /s/Mills A. Riddick Mills A. Riddick, CFA Portfolio Manager 28 TRUST SHARES AVERAGE ANNUAL TOTAL RETURNS (PERIODS ENDED MAY 31, 2001) Annualized Cumulative Inception Inception One Year 3 Years 5 Years to Date to Date 14.09% 4.30% 11.28% 14.45% 379.56% [Line Graph Omitted] Plot points as follows STI Classic Value Income S&P/BARRA Lipper Equity Stock Fund, Value Income Funds Trust Shares Index Classifications 5/31/91 10,000 10,000 10,000 5/92 12,221 10,890 11,263 5/93 13,494 12,630 12,727 5/94 14,841 13,570 13,413 5/95 17,670 15,886 15,327 5/96 22,602 20,072 18,810 5/97 27,615 25,183 22,989 5/98 33,994 32,466 28,688 5/99 37,777 36,715 30,960 5/00 33,803 37,663 30,582 5/01 38,566 40,348 32,735 INVESTOR SHARES AVERAGE ANNUAL TOTAL RETURNS (PERIODS ENDED MAY 31, 2001) Annualized Cumulative Inception Inception One Year 3 Years 5 Years to Date to Date 13.63% 3.90% 10.87% 14.08% 364.31% Without load 9.41% 2.59% 10.03% 13.64% 346.79% With load [Line Graph Omitted] Plot points as follows STI Classic Value Income S&P/BARRA Lipper Equity Stock Fund, Value Income Funds Investor Shares Index Classifications 5/91 9,625 10,000 10,000 5/92 11,763 10,890 11,263 5/93 12,983 12,630 12,727 5/94 14,189 13,570 13,413 5/95 16,843 15,886 15,327 5/96 21,457 20,072 18,810 5/97 26,111 25,183 22,989 5/98 32,040 32,466 28,688 5/99 35,472 36,715 30,960 5/00 31,630 37,663 30,582 5/01 35,941 40,348 32,735 FLEX SHARES AVERAGE ANNUAL TOTAL RETURNS (PERIODS ENDED MAY 31, 2001) Annualized Cumulative Inception Inception One Year 3 Years 5 Years to Date to Date 12.85% 3.16% 10.08% 13.71% 349.22% Without load 10.85% With load [Line Graph Omitted] Plot points as follows STI Classic Value Income S&P/BARRA Lipper Equity Stock Fund, Value Income Funds Flex Shares Index Classifications 5/91 10,000 10,000 10,000 5/92 12,221 10,890 11,263 5/93 13,494 12,630 12,727 5/94 14,841 13,570 13,413 5/95 17,670 15,886 15,327 5/96 22,356 20,072 18,810 5/97 27,031 25,183 22,989 5/98 32,912 32,466 28,688 5/99 36,174 36,715 30,960 5/00 32,014 37,663 30,582 5/01 36,128 40,348 32,735 Past performance is no indication of future performance. The Funds' comparative benchmarks do not include the annual operating expenses incurred by the Fund. *For periods prior to February 1993, when the Fund began operating, the performance quoted reflects performance of the adviser's similarly managed collective investment fund, adjusted to reflect the Fund's fees and expenses. The collective investment fund was not a registered mutual fund and therefore was not subject to certain investment and tax restrictions which may have adversely affected performance. 29 STATEMENT OF NET ASSETS ------------------------------------------------------------------------------- STI CLASSIC EQUITY FUNDS MAY 31, 2001 BALANCED FUND ------------------------------------------------------------------------------- SHARES VALUE (000) ------------------------------------------------------------------------------- COMMON STOCKS (54.5%) CAPITAL GOODS (7.0%) Boeing 38,100 $ 2,396 General Electric 106,800 5,233 Lockheed Martin 80,000 3,063 Tyco International 131,700 7,566 United Technologies 20,000 1,666 -------- 19,924 -------- COMPUTER SOFTWARE (2.1%) BMC Software* 95,300 2,278 Citrix Systems* 102,800 2,457 Parametric Technology* 97,800 1,164 -------- 5,899 -------- CONSUMER CYCLICALS (8.3%) Best Buy* 5,021 267 BJ's Wholesale Club* 50,600 2,467 CVS 53,000 2,910 Gannett 39,500 2,618 Jones Apparel Group* 42,000 1,856 Liz Claiborne 36,200 1,874 Lowe's 45,000 3,129 Marriott International, Cl A 35,000 1,658 May Department Stores 61,500 2,011 McGraw-Hill 17,100 1,097 Talbots 27,000 972 Target 40,300 1,523 Viacom, Cl B* 21,100 1,216 -------- 23,598 -------- CONSUMER STAPLES (2.5%) Hershey Foods 40,000 2,426 Kroger* 120,000 2,993 Safeway* 37,200 1,884 -------- 7,303 -------- ENERGY (5.8%) Anadarko Petroleum 21,500 1,346 Apache 26,800 1,596 Conoco, Cl B 75,000 2,340 Ensco International 69,200 2,229 Exxon Mobil 36,000 3,195 Halliburton 48,800 2,281 Tidewater 28,400 1,332 Transocean Sedco Forex 41,600 2,224 -------- 16,543 -------- FINANCE (11.8%) ACE 44,200 1,713 Aflac 46,200 1,498 ------------------------------------------------------------------------------- SHARES VALUE (000) ------------------------------------------------------------------------------- FINANCE--CONTINUED AMBAC Financial Group 32,800 $ 1,838 American International Group 30,900 2,503 Citigroup 70,500 3,613 Countrywide Credit Industry 48,700 1,886 Fannie Mae 21,000 1,731 First Tennessee National 47,300 1,684 Freddie Mac 43,000 2,847 MBNA 55,600 2,005 Mellon Financial 50,000 2,291 MGIC Investment 20,000 1,407 Providian Financial 25,500 1,447 USA Education 65,000 4,557 Washington Mutual 73,050 2,602 -------- 33,622 -------- HEALTH CARE (9.1%) Baxter International 34,600 1,709 Biomet 48,500 2,166 Cardinal Health 45,000 3,240 Health Management Associates, Cl A* 100,200 1,780 Johnson & Johnson 26,800 2,598 Merck 24,400 1,781 Pfizer 87,300 3,744 St. Jude Medical* 28,800 1,772 Tenet Healthcare* 63,000 2,866 UnitedHealth Group 36,000 2,070 Universal Health Services, Cl B* 27,300 2,184 -------- 25,910 -------- SERVICES (1.7%) Cendant* 167,000 3,203 KPMG Consulting* 34,900 630 Omnicom Group 10,000 931 -------- 4,764 -------- TECHNOLOGY (6.2%) Check Point Software Technologies* 15,000 808 Cisco Systems* 60,000 1,156 Electronic Data Systems 43,200 2,646 EMC-Mass 35,600 1,125 Lexmark International* 37,900 2,349 Micrel* 32,000 977 Microsoft* 88,500 6,122 Sungard Data Systems* 44,800 2,665 -------- 17,848 -------- Total Common Stocks (Cost $121,930) 155,411 -------- 30 ------------------------------------------------------------------------------- FACE AMOUNT (000) VALUE (000) ------------------------------------------------------------------------------- U.S. TREASURY OBLIGATIONS (5.5%) U.S. Treasury Bonds 7.500%, 11/15/16 $7,150 $ 8,321 6.250%, 05/15/30 6,695 7,067 -------- Total U.S. Treasury Obligations (Cost $15,065) 15,388 -------- U.S. GOVERNMENT AGENCY OBLIGATIONS (4.7%) FHLMC 5.750%, 03/15/09 5,000 4,931 5.250%, 02/15/04 3,000 3,030 FNMA 7.125%, 01/15/30 5,150 5,515 -------- Total U.S. Government Agency Obligations (Cost $13,249) 13,476 -------- U.S. GOVERNMENT MORTGAGE-BACKED OBLIGATIONS (6.0%) GNMA 8.500%, 04/15/31 10,675 11,168 7.000%, 12/15/28 5,849 5,924 -------- Total U.S. Government Mortgage-Backed Obligations (Cost $17,068) 17,092 -------- CORPORATE OBLIGATIONS (20.2%) CAPITAL GOODS (1.2%) Caterpillar 7.300%, 05/01/31 625 633 Dover 6.500%, 02/15/11 1,150 1,135 United Tech 6.350%, 03/01/11 1,800 1,787 -------- 3,555 -------- COMMUNICATION SERVICES (1.5%) SBC Communications 6.250%, 03/15/11 1,150 1,123 5.750%, 05/02/06 1,000 991 WorldCom 8.250%, 05/15/31 1,300 1,302 6.500%, 05/15/04 1,000 1,003 -------- 4,419 -------- CONSUMER CYCLICALS (2.1%) Avon Products 7.150%, 11/15/09 850 867 Marriott International, Ser C 7.875%, 09/15/09 1,500 1,549 May Department Stores 7.900%, 10/15/07 2,250 2,418 Tribune 7.450%, 10/15/09 1,000 1,023 -------- 5,857 -------- ------------------------------------------------------------------------------- FACE AMOUNT (000) VALUE (000) ------------------------------------------------------------------------------- CONSUMER STAPLES (1.1%) Coca-Cola Enterprises 8.500%, 02/01/22 $850 $ 967 Colgate Palmolive, Ser D, MTN 5.340%, 03/27/06 1,625 1,597 Philip Morris 7.500%, 04/01/04 500 521 -------- 3,085 -------- FINANCE (13.1%) AON 6.900%, 07/01/04 2,150 2,206 Boeing Capital 5.650%, 05/15/06 2,250 2,237 Citigroup 5.700%, 02/06/04 2,100 2,120 Conseco 8.750%, 02/09/04 2,550 2,416 6.800%, 06/15/05 1,250 1,075 Conseco (C) 6.400%, 06/15/11 950 946 Countrywide Home Loan, Ser F, MTN 6.510%, 02/11/05 2,300 2,337 Donaldson, Lufkin & Jenrette, MTN 6.150%, 05/04/04 1,150 1,169 Ford Motor Credit 6.875%, 02/01/06 2,075 2,110 General Motors Acceptance 6.750%, 01/15/06 1,800 1,826 ING Groep 8.000%, 10/30/06 1,540 1,659 International Lease Finance, Ser M, MTN 5.950%, 06/06/05 2,175 2,175 Morgan Stanley Dean Witter 6.750%, 04/15/11 2,000 1,984 Morgan Stanley Dean Witter, Ser C, MTN 7.125%, 08/15/03 2,100 2,182 National Rural Utilities 7.375%, 02/10/03 1,000 1,039 6.000%, 05/15/06 2,250 2,250 Provident 7.000%, 07/15/18 2,050 1,866 Salomon Smith Barney Holdings 6.500%, 02/15/08 1,475 1,472 Texaco Capital 5.500%, 01/15/09 950 905 31 STATEMENT OF NET ASSETS ------------------------------------------------------------------------------- STI CLASSIC EQUITY FUNDS MAY 31, 2001 BALANCED FUND--CONCLUDED ------------------------------------------------------------------------------- FACE AMOUNT (000) VALUE (000) ------------------------------------------------------------------------------- FINANCE--CONTINUED Washington Mutual Financial 7.250%, 06/15/06 $2,100 $ 2,155 Wells Fargo Financial 6.125%, 02/15/06 1,150 1,159 -------- 37,288 -------- HEALTH CARE (0.5%) Cardinal Health 6.750%, 02/15/11 1,500 1,517 -------- TECHNOLOGY (0.7%) Computer Sciences 7.500%, 08/08/05 1,900 1,955 -------- Total Corporate Obligations (Cost $57,317) 57,676 -------- REPURCHASE AGREEMENT (9.4%) UBS Warburg 4.110%, dated 05/31/01, matures 06/01/01, repurchase price $26,845,062 (collateralized by FHLMC obligation: total market value $27,381,795) (D) 26,842 26,842 -------- Total Repurchase Agreement (Cost $26,842) 26,842 -------- Total Investments (100.3%) (Cost $251,471) 285,885 -------- OTHER ASSETS AND LIABILITIES, NET (-0.3%) (911) -------- ------------------------------------------------------------------------------- VALUE (000) ------------------------------------------------------------------------------- NET ASSETS: Fund shares of the Trust Shares (unlimited authorization -- no par value) based on 15,880,005 outstanding shares of beneficial interest $172,058 Fund shares of the Investor Shares (unlimited authorization -- no par value) based on 591,640 outstanding shares of beneficial interest 6,272 Fund shares of the Flex Shares (unlimited authorization -- no par value) based on 5,188,265 outstanding shares of beneficial interest 66,338 Undistributed net investment income 1,003 Accumulated net realized gain on investments 4,889 Net unrealized appreciation on investments 34,414 -------- Total Net Assets (100.0%) $284,974 ======== Net Asset Value, Offering and Redemption Price Per Share -- Trust Shares $13.18 ======== Net Asset Value and Redemption Price Per Share -- Investor Shares $13.24 ======== Maximum Offering Price Per Share -- Investor Shares ($13.24 / 96.25%) $13.76 ======== Net Asset Value, Offering and Redemption Price Per Share -- Flex Shares (1) $13.07 ======== THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS. FOR DESCRIPTIONS OF ABBREVIATIONS, PLEASE SEE PAGE 64. 32 CAPITAL APPRECIATION FUND -------------------------------------------------------------------------------- SHARES VALUE (000) -------------------------------------------------------------------------------- COMMON STOCKS (99.0%) CAPITAL GOODS (13.3%) Boeing 387,100 $ 24,345 General Electric 872,000 42,728 Lockheed Martin 760,500 29,119 Thermo Electron* 500,000 13,955 Tyco International 1,213,400 69,710 United Technologies 218,100 18,170 ---------- 198,027 ---------- COMPUTER SOFTWARE (3.1%) BMC Software* 427,206 10,210 Citrix Systems* 1,026,000 24,521 Parametric Technology* 992,400 11,810 ---------- 46,541 ---------- CONSUMER CYCLICALS (15.5%) Best Buy* 58,632 3,116 BJ's Wholesale Club* 512,500 24,984 CVS 508,600 27,922 Gannett 390,700 25,896 Jones Apparel Group* 423,700 18,728 Liz Claiborne 375,200 19,424 Lowe's 400,000 27,812 Marriott International, Cl A 385,900 18,276 May Department Stores 650,000 21,255 McGraw-Hill 141,500 9,076 Talbots 251,700 9,061 Target 432,600 16,352 Viacom, Cl B* 174,400 10,052 ---------- 231,954 ---------- CONSUMER STAPLES (4.6%) Hershey Foods 360,400 21,855 Kroger* 829,100 20,678 Safeway* 340,000 17,221 Sysco 318,400 9,466 ---------- 69,220 ---------- ENERGY (9.9%) Anadarko Petroleum 202,600 12,685 Apache 312,100 18,586 Conoco, Cl B 700,000 21,840 Ensco International 696,500 22,434 Exxon Mobil 330,700 29,350 Halliburton 140,000 6,544 Tidewater 275,800 12,938 Transocean Sedco Forex 445,500 23,812 ---------- 148,189 ---------- FINANCE (21.9%) ACE 378,500 14,667 Aflac 511,800 16,598 ------------------------------------------------------------------------------- SHARES VALUE (000) ------------------------------------------------------------------------------- FINANCE--CONTINUED AMBAC Financial Group 354,900 $ 19,892 American International Group 272,300 22,056 Citigroup 630,400 32,308 Countrywide Credit Industry 469,000 18,164 Fannie Mae 200,000 16,488 Fifth Third Bancorp 152,500 8,978 First Tennessee National 456,000 16,234 Freddie Mac 413,100 27,347 MBNA 580,500 20,933 Mellon Financial 390,000 17,870 MGIC Investment 220,000 15,481 Providian Financial 245,000 13,906 USA Education 580,800 40,720 Washington Mutual 702,900 25,037 ---------- 326,679 ---------- HEALTH CARE (16.1%) Baxter International 325,000 16,048 Biomet 511,200 22,835 Cardinal Health 345,000 24,837 Health Management Associates, Cl A* 926,800 16,460 Johnson & Johnson 268,200 26,002 Merck 224,400 16,379 Pfizer 778,800 33,403 St. Jude Medical* 282,300 17,367 Tenet Healthcare* 621,100 28,254 UnitedHealth Group 325,500 18,716 Universal Health Services, Cl B* 250,100 20,008 ---------- 240,309 ---------- SERVICES (2.6%) Cendant* 1,023,800 19,636 KPMG Consulting* 371,500 6,706 Omnicom Group 130,500 12,147 ---------- 38,489 ---------- TECHNOLOGY (12.0%) Check Point Software Technologies* 160,000 8,618 Electronic Data Systems 466,200 28,555 EMC-Mass 438,500 13,857 Lexmark International* 375,300 23,265 Mentor Graphics* 441,500 11,611 Micrel* 79,200 2,417 Microsoft* 906,350 62,701 Sungard Data Systems* 460,900 27,414 ---------- 178,438 ---------- Total Common Stocks (Cost $1,145,065) 1,477,846 ---------- 33 STATEMENT OF NET ASSETS/SCHEDULE OF INVESTMENTS ------------------------------------------------------------------------------- STI CLASSIC EQUITY FUNDS MAY 31, 2001 CAPITAL APPRECIATION FUND--CONCLUDED ------------------------------------------------------------------------------- FACE AMOUNT (000) VALUE (000) ------------------------------------------------------------------------------- REPURCHASE AGREEMENT (0.7%) UBS Warburg 4.110%, dated 05/31/01, matures 06/01/01, repurchase price $10,050,056 (collateralized by FHLMC obligation: total market value $10,254,556) (D) $10,049 $ 10,049 ---------- Total Repurchase Agreement (Cost $10,049) 10,049 ---------- Total Investments (99.7%) (Cost $1,155,114) 1,487,895 ---------- OTHER ASSETS AND LIABILITIES, NET (0.3%) 5,083 ---------- NET ASSETS: Fund shares of the Trust Shares (unlimited authorization -- no par value) based on 84,777,542 outstanding shares of beneficial interest 876,752 Fund shares of the Investor Shares (unlimited authorization -- no par value) based on 14,902,778 outstanding shares of beneficial interest 164,283 Fund shares of the Flex Shares (unlimited authorization -- no par value) based on 8,591,959 outstanding shares of beneficial interest 128,158 Accumulated net realized loss on investments (8,996) Net unrealized appreciation on investments 332,781 ---------- Total Net Assets (100.0%) $1,492,978 ========== Net Asset Value, Offering and Redemption Price Per Share -- Trust Shares $13.89 ========== Net Asset Value and Redemption Price Per Share -- Investor Shares $13.59 ========== Maximum Offering Price Per Share-- Investor Shares ($13.59 / 96.25%) $14.12 ========== Net Asset Value, Offering and Redemption Price Per Share -- Flex Shares (1) $13.09 ========== THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS. FOR DESCRIPTIONS OF ABBREVIATIONS, PLEASE SEE PAGE 64. 34 -------------------------------------------------------------------------------- E-COMMERCE OPPORTUNITY FUND -------------------------------------------------------------------------------- SHARES VALUE (000) -------------------------------------------------------------------------------- COMMON STOCKS (86.1%) BASIC MATERIALS (0.1%) Peabody Energy* 2,000 $ 68 ------- CAPITAL GOODS (3.6%) Newport 40,000 1,289 Shaw Group* 44,040 2,589 ------- 3,878 ------- COMMUNICATION SERVICES (10.4%) Amdocs* 33,900 2,095 BellSouth 50,000 2,061 China Unicom ADR* 76,000 1,224 Comverse Technology* 11,400 661 Dobson Communications, Cl A* 50,000 760 Illuminet Holdings* 30,000 892 Nokia Oyj ADR 120,000 3,509 Tellium* 7,000 185 ------- 11,387 ------- COMPUTER SOFTWARE (11.6%) BMC Software* 135,000 3,226 Checkfree* 14,400 558 Internet Security Systems* 50,000 2,425 McData, Cl B* 43,800 1,349 Micromuse* 55,000 2,096 RealNetworks* 184,000 2,026 Veritas Software* 15,000 989 ------- 12,669 ------- CONSUMER CYCLICALS (3.9%) AOL Time Warner* 81,800 4,272 -------- ENERGY (4.1%) Capstone Turbine* 47,300 1,555 Enron 30,000 1,587 Mirant* 33,518 1,317 ------- 4,459 ------- FINANCE (3.5%) Citigroup 40,000 2,050 Equifax 50,000 1,754 ------- 3,804 ------- HEALTH CARE (10.2%) Amgen* 30,000 1,991 Genzyme - General Division* 25,000 2,674 Idec Pharmaceuticals* 60,000 3,696 Medimmune* 70,000 2,791 ------- 11,152 ------- -------------------------------------------------------------------------------- SHARES VALUE (000) -------------------------------------------------------------------------------- SEMICONDUCTORS & CIRCUIT BOARDS (12.6%) Advanced Micro Devices* 125,000 $ 3,531 Celestica* 45,600 2,280 International Rectifier* 15,000 901 Jabil Circuit* 70,000 2,057 Microchip Technology* 121,300 2,784 RF Micro Devices* 45,000 1,174 Solectron* 50,000 1,079 ------- 13,806 ------- SERVICES (0.5%) DeVry* 17,600 588 ------- TECHNOLOGY (25.6%) Advanced Digital Information* 78,500 1,431 Check Point Software Technologies* 23,400 1,260 Cisco Systems* 140,000 2,696 Compaq Computer 80,000 1,279 Dell Computer* 130,000 3,167 EMC-Mass 59,200 1,871 Instinet Group* 200,000 3,814 International Business Machines 25,000 2,795 Lexmark International* 36,200 2,244 Microsoft* 65,000 4,497 Oplink Communications* 199,700 653 Sonus Networks* 29,200 752 Sungard Data Systems* 25,000 1,487 ------- 27,946 ------- Total Common Stocks (Cost $91,948) 94,029 ------- Total Investments (86.1%) (Cost $91,948) $94,029 ======= THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS. FOR DESCRIPTIONS OF ABBREVIATIONS, PLEASE SEE PAGE 64. 35 STATEMENT OF NET ASSETS -------------------------------------------------------------------------------- STI CLASSIC EQUITY FUNDS MAY 31, 2001 GROWTH AND INCOME FUND -------------------------------------------------------------------------------- SHARES VALUE (000) -------------------------------------------------------------------------------- COMMON STOCKS (98.8%) BASIC MATERIALS (2.3%) International Paper 600,000 $ 22,950 -------- CAPITAL GOODS (11.2%) Boeing 450,000 28,300 Cooper Industries 350,000 13,310 General Electric 200,000 9,800 Illinois Tool Works 100,000 6,846 Ingersoll-Rand 450,000 22,207 Lockheed Martin 400,000 15,316 Textron 250,000 14,402 -------- 110,181 -------- COMMUNICATION SERVICES (6.7%) AT&T 600,000 12,702 SBC Communications 300,000 12,915 Verizon Communications 400,000 21,940 WorldCom* 1,050,000 18,732 -------- 66,289 -------- COMPUTER SOFTWARE (2.0%) Computer Associates International 700,000 19,852 -------- CONSUMER CYCLICALS (12.8%) AOL Time Warner* 250,000 13,057 Brunswick 725,000 16,385 Circuit City Stores 1,100,000 16,511 Gannett 200,000 13,256 Johnson Controls 225,000 15,840 Lennar 61,900 2,290 Sears Roebuck 100,000 3,988 Target 600,000 22,680 Walt Disney 705,300 22,302 -------- 126,309 -------- CONSUMER STAPLES (11.0%) H.J. Heinz 450,000 19,490 Hershey Foods 300,000 18,192 McCormick 600,000 24,240 Procter & Gamble 200,000 12,848 Quaker Oats 150,000 14,379 Sara Lee 1,000,000 18,840 -------- 107,989 -------- ENERGY (6.0%) Conoco, Cl B 200,000 6,240 Exxon Mobil 300,000 26,625 Royal Dutch Petroleum, NY Shares 200,000 12,196 Texaco 200,000 14,280 -------- 59,341 -------- -------------------------------------------------------------------------------- SHARES VALUE (000) -------------------------------------------------------------------------------- FINANCE (21.8%) American International Group 250,000 $ 20,250 Bank One 450,000 17,820 Berkshire Hathaway, Cl B* 12,000 27,264 Citigroup 550,000 28,188 Fannie Mae 250,000 20,610 Fifth Third Bancorp 215,000 12,657 Jefferson-Pilot 450,000 21,326 Merrill Lynch 225,000 14,618 MGIC Investment 200,000 14,074 Sovereign Bancorp 1,500,000 16,995 Wells Fargo 450,000 21,186 -------- 214,988 -------- HEALTH CARE (9.6%) Abbott Laboratories 500,000 25,990 Alza* 425,000 20,039 Johnson & Johnson 100,000 9,695 Merck 200,000 14,598 Watson Pharmaceuticals* 400,000 24,040 -------- 94,362 -------- TECHNOLOGY (12.2%) Compaq Computer 800,000 12,792 EMC-Mass 200,000 6,320 Intel 550,000 14,856 International Business Machines 175,000 19,565 Lucent Technologies 1,550,000 12,214 Microsoft* 325,000 22,484 Motorola 800,000 11,760 Sun Microsystems* 600,000 9,882 Tellabs* 300,000 10,203 -------- 120,076 -------- UTILITIES (3.2%) Duke Energy 400,000 18,288 Exelon 200,000 13,564 -------- 31,852 -------- Total Common Stocks (Cost $797,550) 974,189 -------- CASH EQUIVALENT (0.6%) SEI Daily Income Trust Prime Obligation Fund 5,921,828 5,922 -------- Total Cash Equivalent (Cost $5,922) 5,922 -------- Total Investments (99.4%) (Cost $803,472) 980,111 -------- OTHER ASSETS AND LIABILITIES, NET (0.6%) 6,103 -------- 36 -------------------------------------------------------------------------------- VALUE (000) -------------------------------------------------------------------------------- NET ASSETS: Fund shares of the Trust Shares (unlimited authorization -- no par value) based on 57,664,582 outstanding shares of beneficial interest $699,080 Fund shares of the Investor Shares (unlimited authorization -- no par value) based on 2,648,190 outstanding shares of beneficial interest 30,918 Fund shares of the Flex Shares (unlimited authorization -- no par value) based on 5,240,476 outstanding shares of beneficial interest 80,470 Undistributed net investment income 698 Accumulated net realized loss on investments (1,591) Net unrealized appreciation on investments 176,639 -------- Total Net Assets (100.0%) $986,214 ======== Net Asset Value, Offering and Redemption Price Per Share -- Trust Shares $15.05 ======== Net Asset Value and Redemption Price Per Share -- Investor Shares $15.17 ======== Maximum Offering Price Per Share -- Investor Shares ($15.17 / 96.25%) $15.76 ======== Net Asset Value, Offering and Redemption Price Per Share -- Flex Shares (1) $14.96 ======== THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS. FOR DESCRIPTIONS OF ABBREVIATIONS, PLEASE SEE PAGE 64. 37 STATEMENT OF NET ASSETS -------------------------------------------------------------------------------- STI CLASSIC EQUITY FUNDS MAY 31, 2001 INTERNATIONAL EQUITY FUND -------------------------------------------------------------------------------- SHARES VALUE (000) -------------------------------------------------------------------------------- FOREIGN COMMON STOCKS (95.9%) AUSTRALIA (2.5%) Lion Nathan 336,000 $ 714 National Australia Bank 150,581 2,477 Westpac Banking 298,100 2,100 Woolworths 50,900 248 -------- 5,539 -------- DENMARK (0.3%) Sophus Berendsen, Cl B 25,500 649 -------- FINLAND (0.9%) Nokia Oyj 31,400 910 Tietoenator Oyj 43,900 1,181 -------- 2,091 -------- FRANCE (11.9%) Alcatel, Cl A 17,500 444 BNP Paribas 38,900 3,380 Cie de Saint-Gobain 14,300 2,132 Coflexip Stena Offshore 26,200 3,780 Compagnie Francaise d'Etudes et de Construction Technip 28,710 4,259 ISIS 8,700 895 Lafarge 44,900 4,194 Suez 68,000 2,075 TotalFinaElf 28,060 4,088 Vivendi Universal 19,700 1,257 -------- 26,504 -------- GERMANY (7.1%) BASF 54,500 2,206 Bayer 62,800 2,494 Bayerische Hypo-und Vereinsbank 25,800 1,246 Bayerische Motoren Werke 67,600 2,263 Buderus 58,600 1,358 Deutsche Bank 21,900 1,682 Deutsche Post* 44,300 682 FAG Kugelfischer Georg Schaefer 250,500 1,741 Siemens 30,150 2,175 -------- 15,847 -------- HONG KONG (2.7%) China Mobile* 405,000 1,963 Esprit Holdings 650,000 821 Li & Fung 867,400 1,518 Sun Hung Kai Properties 191,000 1,781 -------- 6,083 -------- IRELAND (0.1%) Bank of Ireland 17,306 166 -------- -------------------------------------------------------------------------------- SHARES VALUE (000) -------------------------------------------------------------------------------- ITALY (6.2%) ENI-Ente Nazionale Idrocarburi* 559,300 $ 3,603 IntesaBci* 689,385 2,565 Parmalat Finanziaria* 1,131,624 3,213 Saipem 709,000 4,417 -------- 13,798 -------- JAPAN (23.9%) Canon 84,300 3,342 Daiichi Pharmaceutical 100,000 2,314 Daiwa Securities Group 127,000 1,387 Fast Retailing 10,700 2,084 Fuji Heavy Industries 448,000 3,126 Hitachi 158,000 1,628 Japan Tobacco 105 741 Kao 43,000 1,122 KDDI 453 2,211 Kirin Brewery 237,400 2,266 Kyocera 19,600 1,829 Matsushita Electric Industrial 81,000 1,486 Minebea 158,000 1,158 Mitsubishi Heavy Industries 827,000 3,522 Murata Manufacturing 12,000 955 NEC 24,000 393 Olympus Optical 79,000 1,217 Promise 35,200 2,797 Seven - Eleven Japan 20,000 917 Sharp 219,000 3,139 Sony 45,700 3,527 Sumitomo Chemical 387,000 1,928 Tokio Marine & Fire Insurance 148,000 1,554 Toshiba 454,000 2,579 Toyota Motor 65,500 2,315 Yamada Denki 27,000 2,409 Yokowo 117,000 1,498 -------- 53,444 -------- NETHERLANDS (8.4%) ABN Amro Holding 110,100 2,104 Akzo Nobel 48,300 2,088 Fortis 141,500 3,494 IHC Caland 91,612 4,515 ING Groep 28,900 1,886 United Services Group 232,286 4,774 -------- 18,861 -------- NEW ZEALAND (0.8%) Auckland International Airport 767,900 1,124 Telecom of New Zealand 338,001 752 -------- 1,876 -------- 38 -------------------------------------------------------------------------------- SHARES VALUE (000) -------------------------------------------------------------------------------- NORWAY (1.5%) Petroleum Geo-Services ADR* 300,400 $ 3,407 -------- SINGAPORE (0.7%) Oversea-Chinese Banking 241,600 1,456 -------- SOUTH KOREA (0.2%) Hana Bank 74,600 437 -------- SPAIN (4.7%) Aguas de Barcelona 110,451 1,676 Altadis 221,500 2,754 Sol Melia* 199,300 1,806 Telefonica* 208,692 3,073 Union Electrica Fenosa* 66,100 1,182 -------- 10,491 -------- SWEDEN (2.3%) Sandvik 145,500 3,075 Swedish Match 222,900 1,031 Telefonaktiebolaget LM Ericsson, Cl B 163,800 1,042 -------- 5,148 -------- SWITZERLAND (1.2%) Novartis 42,000 1,598 Zurich Financial Services 3,434 1,152 -------- 2,750 -------- UNITED KINGDOM (20.5%) AstraZeneca 43,700 2,064 Bank of Scotland 219,200 2,491 Boots 202,600 1,718 BP 461,900 4,081 British Airways 269,200 1,402 British Telecommunications 414,500 2,561 Colt Telecom Group* 94,200 984 Diageo 246,405 2,660 GlaxoSmithKline 167,600 4,552 Hanson 378,600 2,662 Lloyds TSB Group 228,875 2,276 Marconi 551,406 2,769 Prudential 168,322 1,913 Reckitt Benckiser 201,888 2,676 Royal Bank of Scotland Group 68,300 1,572 Scottish Power 311,400 2,261 Stagecoach Holdings 2,024,471 1,948 Unilever 87,600 668 Vodafone Group 1,756,000 4,521 -------- 45,779 -------- Total Foreign Common Stocks (Cost $225,656) 214,326 -------- -------------------------------------------------------------------------------- SHARES VALUE (000) -------------------------------------------------------------------------------- FOREIGN RIGHTS (0.1%) UNITED KINGDOM (0.1%) British Telecommunications* 124,350 $ 236 -------- Total Foreign Rights (Cost $0) 236 -------- Total Investments (96.0%) (Cost $225,656) 214,562 -------- OTHER ASSETS AND LIABILITIES, NET (4.0%) 8,840 -------- NET ASSETS: Fund shares of the Trust Shares (unlimited authorization -- no par value) based on 20,419,410 outstanding shares of beneficial interest 236,123 Fund shares of the Investor Shares ( unlimited authorization -- no par value) based on 743,224 outstanding shares of beneficial interest 8,542 Fund shares of the Flex Shares (unlimited authorization -- no par value) based on 801,972 outstanding shares of beneficial interest 11,916 Distributions in excess of net investment income (775) Accumulated net realized loss on investments (21,164) Net unrealized depreciation on investments (11,094) Net unrealized depreciation on foreign currency and translation of other assets and liabilities in foreign currency investments (146) -------- Total Net Assets (100.0%) $223,402 ======== Net Asset Value, Offering and Redemption Price Per Share -- Trust Shares $10.19 ======== Net Asset Value and Redemption Price Per Share -- Investor Shares $10.11 ======== Maximum Offering Price Per Share -- Investor Shares ($10.11 / 96.25%) $10.50 ======== Net Asset Value, Offering Price and Redemption Price Per Share -- Flex Shares (1) $9.68 ======== 39 STATEMENT OF NET ASSETS ---------------------------------------------------------- STI CLASSIC EQUITY FUNDS MAY 31, 2001 INTERNATIONAL EQUITY FUND--CONCLUDED ---------------------------------------------------------- ---------------------------------------------------------- At May 31, 2001, sector diversification of the Fund was as follows (Unaudited): % OF VALUE SECTOR DIVERSIFICATION NET ASSETS (000) ---------------------- ---------- ------- FOREIGN COMMON STOCKS Oil & Gas 12.9% $28,787 Banking 10.7 23,954 Electronics 10.0 22,372 Construction Materials 6.5 14,605 Food, Beverage and Tobacco 6.4 14,294 Telecommunications 6.0 13,384 Pharmaceuticals 4.7 10,529 Manufacturing 4.7 10,512 Chemicals 3.9 8,716 Telephone 3.5 7,845 Automotive 3.4 7,704 Financial Services 3.4 7,678 Services 3.2 7,230 Insurance 2.9 6,506 Consumer Products 2.5 5,568 Transportation 2.3 5,155 Audio/Video 2.2 5,013 Retail 2.1 4,719 Distribution 1.0 2,339 Diversified Operations 0.9 2,075 Real Estate 0.8 1,781 Multi-Media 0.7 1,257 Computers 0.6 1,181 Cosmetics & Toiletries 0.6 1,122 ----- -------- TOTAL FOREIGN COMMON STOCKS 95.9 214,326 FOREIGN RIGHTS 0.1 236 ----- -------- TOTAL INVESTMENTS 96.0 214,562 OTHER ASSETS AND LIABILITIES, NET 4.0 8,840 ----- -------- NET ASSETS 100.0% $223,402 ===== ======== THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS. FOR DESCRIPTIONS OF ABBREVIATIONS, PLEASE SEE PAGE 64. 40 ------------------------------------------------------------------------------- INTERNATIONAL EQUITY INDEX FUND ------------------------------------------------------------------------------- SHARES VALUE (000) ------------------------------------------------------------------------------- FOREIGN COMMON STOCKS (97.3%) AUSTRALIA (3.0%) Amcor 31,691 $ 107 AMP 46,797 481 BHP 77,535 884 Brambles Industries 11,480 298 Coles Myer 65,117 234 Commonwealth Bank of Australia 49,673 786 CSR 46,354 146 Foster's Brewing Group 138,984 378 Lend Lease 24,112 146 National Australia Bank 51,425 846 News Corporation 70,130 614 OneSteel* 21,908 10 Pacific Dunlop 110,154 60 PaperlinX 12,530 27 Rio Tinto 12,409 229 Telstra 294,857 961 Westpac Banking 66,992 472 WMC 48,178 219 Woolworths 63,063 307 -------- 7,205 -------- AUSTRIA (1.3%) Austria Tabakwerke 5,975 366 Flughafen Wien 8,643 278 Generali Holding Vienna 2,034 279 Mayr-Melnhof Karton 4,392 189 Oesterreichische Elektrizitaetswirtschafts, Cl A 8,172 745 OMV 7,080 702 VA Technologie 4,205 135 Wienerberger Baustoffindustr 21,618 359 -------- 3,053 -------- BELGIUM (1.9%) AGFA-Gevaert 11,951 176 Bekaert 2,132 73 Delhaize-Le Lion 4,847 275 D'ieteren 498 84 Electrabel 3,837 745 Fortis, Cl B 47,763 1,134 Groupe Bruxelles Lambert 9,825 535 KBC Bancassurance Holding 22,971 826 Solvay 7,825 368 UCB 11,658 346 Union Miniere 2,473 102 -------- 4,664 -------- DENMARK (1.5%) D/S 1912 49 379 Dampskibsselkabet Svendborg, Cl B 45 460 Danisco 5,310 185 ------------------------------------------------------------------------------- SHARES VALUE (000) ------------------------------------------------------------------------------- DENMARK--CONTINUED Danske Bank 36,000 $ 569 Group 4 Falck 800 90 ISS* 2,200 126 NavisionDamgaard* 1,100 31 Novo-Nordisk, Cl B 20,350 819 Novozymes, Cl B 4,070 88 TDC 11,416 480 Vestas Wind Systems 5,200 254 William Demant Holding* 3,600 112 -------- 3,593 -------- FINLAND (0.6%) Metso Oyj 1,600 17 Nokia Oyj 42,000 1,217 Outokumpu Oyj 2,600 23 Sampo Oyj, Cl A 7,000 59 Sonera Oyj 7,300 63 Tietoenator Oyj 1,200 32 UPM-Kymmene Oyj 3,500 111 -------- 1,522 -------- FRANCE (9.3%) Accor 5,453 222 Air Liquide 2,743 382 Alcatel, Cl A 32,144 816 Aventis 20,531 1,524 Axa 42,196 1,198 BNP Paribas 12,126 1,053 Bouygues 9,096 335 Cap Gemini 3,418 394 Carrefour Supermarche 18,299 1,000 Cie de Saint-Gobain 2,282 340 Cie Generale D'Optique Essilor International 384 104 Dassault Systemes 3,235 145 Eridania Beghin-Say 977 88 Etablissements Economiques du Casino Guichard Perrachon 2,525 224 Eurazeo 1,470 91 France Telecom 28,321 1,560 Groupe Danone 3,128 408 Lafarge 3,399 317 Lagardere 3,794 199 L'Oreal 17,368 1,126 LVMH Moet Hennessy Louis Vuitton 12,918 734 Michelin, Cl B 4,201 146 Pechiney, Cl A 2,016 109 Pernod-Ricard 1,399 96 Peugeot 1,347 373 Pinault-Printemps-Redoute 3,356 583 Publicis Groupe 2,950 93 41 STATEMENT OF NET ASSETS ------------------------------------------------------------------------------- STI CLASSIC EQUITY FUNDS MAY 31, 2001 INTERNATIONAL EQUITY INDEX FUND ------------------------------------------------------------------------------- SHARES VALUE (000) -------------------------------------------------------------------------------- FRANCE--CONTINUED Sagem 1,085 $ 78 Sanofi-Synthelabo 19,944 1,226 Schneider Electric 4,408 265 Societe BIC 2,048 73 Societe Generale, Cl A 10,721 638 Sodexho Alliance 3,033 128 STMicroelectronics 24,575 875 Suez 28,925 883 Thales 4,577 187 TotalFinaElf 20,719 3,019 TotalFinaElf-Strip VVPR* 1,314 -- Union du Credit-Bail Immobilier 868 139 Usinor 6,158 79 Valeo 1,338 58 Vivendi Universal 22,604 1,443 -------- 22,751 -------- GERMANY (13.2%) Adidas-Salomon 2,400 141 Allianz 12,400 3,489 BASF 32,000 1,295 Bayer 37,300 1,481 Bayerische Hypo-und Vereinsbank 25,800 1,246 Beiersdorf 4,400 420 Continental 6,600 92 DaimlerChrysler 51,600 2,366 Deutsche Bank 31,200 2,396 Deutsche Lufthansa 19,600 359 Deutsche Telekom 154,200 3,193 Douglas Holding 2,050 63 Dresdner Bank 26,800 1,183 E.ON 38,100 1,909 EM.TV & Merchandising* 7,200 22 Epcos 3,300 203 Fresenius Medical Care 4,800 329 Gehe 4,000 145 Heidelberger Zement 3,200 151 Hochtief 3,700 79 Kamps 4,550 39 KarstadtQuelle 6,100 190 Linde 7,000 301 MAN 6,310 150 Merck Kgaa 9,000 305 Metro 15,701 606 Muenchener Rueckversicherungs 9,000 2,479 Preussag 9,910 328 RWE 26,900 1,008 SAP 9,300 1,304 Schering 10,400 532 SGL Carbon* 1,150 46 Siemens 44,850 3,235 -------------------------------------------------------------------------------- SHARES VALUE (000) -------------------------------------------------------------------------------- GERMANY--CONTINUED ThyssenKrupp 26,100 $ 387 Volkswagen 15,900 780 WCM Beteiligungs & Grundbesi 9,750 157 -------- 32,409 -------- HONG KONG (1.2%) Bank of East Asia 40,800 94 Cathay Pacific Airways 70,000 96 CLP Holdings 51,600 214 Hang Seng Bank 34,800 386 Hong Kong & China Gas 131,670 154 Hutchison Whampoa 76,080 819 Johnson Electric Holdings 64,000 111 Li & Fung 50,000 87 New World Development 59,000 76 Pacific Century CyberWorks* 245,630 80 Sun Hung Kai Properties 50,600 472 Swire Pacific, Cl A 28,000 153 Television Broadcasts 9,000 45 Wharf Holdings 50,000 113 -------- 2,900 -------- IRELAND (1.0%) Allied Irish Banks 20,025 221 CRH 21,400 371 Eircom 80,000 79 Elan* 18,800 1,070 Independent News & Media 65,400 144 Irish Life & Permanent 14,200 159 Kerry Group, Cl A 8,000 92 Ryanair Holdings 29,300 316 -------- 2,452 -------- ITALY (7.8%) Alitalia* 80,439 107 Arnoldo Mondadori Editore* 15,468 129 Assicurazioni Generali* 67,900 1,928 Autogrill 14,000 153 Autostrade Concessioni e Costruzioni Autostrade* 64,000 392 Banca di Roma* 78,125 293 Banca Popolare di Milano* 15,500 65 Benetton Group* 9,700 149 Bipop-Carire* 98,500 372 Bulgari 16,250 184 Enel* 394,500 1,251 ENI-Ente Nazionale Idrocarburi* 436,500 2,812 Fiat 21,000 477 Fiat RNC 5,100 69 Gruppo Editoriale L'Espresso* 20,000 84 IntesaBci* 273,000 1,016 42 -------------------------------------------------------------------------------- SHARES VALUE (000) -------------------------------------------------------------------------------- ITALY--CONTINUED IntesaBci* 45,500 $ 107 Italcementi 11,650 100 Italgas* 19,500 166 Mediaset* 65,600 617 Mediobanca* 34,750 382 Parmalat Finanziaria* 44,200 125 Pirelli* 108,000 321 Rinascente* 17,500 85 Riunione Adriatica di Sicurta* 39,300 488 San Paolo-IMI* 76,500 1,037 Telecom Italia 202,250 1,920 Telecom Italia RNC 50,750 267 TIM 463,500 2,689 Tiscali* 5,665 67 Unicredito Italiano* 272,000 1,201 -------- 19,053 -------- JAPAN (31.8%) 77 Bank 17,000 102 Acom 5,900 482 Advantest 3,700 383 Ajinomoto 29,000 317 Amada 16,000 93 Aoyama Trading 3,700 59 Asahi Bank 115,000 294 Asahi Breweries 21,000 227 Asahi Glass 51,000 419 Asahi Kasei 67,000 313 Asatsu-DK 2,000 47 Autobacs Seven 1,900 51 Bank of Fukuoka 27,000 115 Bank of Yokohama 50,000 191 Benesse 4,200 130 Bridgestone 35,000 373 Canon 35,000 1,387 Casio Computer 13,000 85 Central Japan Railway 93 610 Chugai Pharmaceutical 12,000 193 Chuo Mitsui Trust & Banking 32,000 58 Citizen Watch 14,000 91 Cosmo Oil 42,000 118 Credit Saison 7,400 177 CSK 2,800 74 Dai Nippon Printing 32,000 436 Daicel Chemical Industries 20,000 70 Daiei 36,000 69 Daiichi Pharmaceutical 12,000 278 Daikin Industries 11,000 227 Daikyo* 14,000 21 Daimaru 15,000 57 Dainippon Ink & Chemical 41,000 117 Daito Trust Construction 6,400 126 -------------------------------------------------------------------------------- SHARES VALUE (000) -------------------------------------------------------------------------------- JAPAN--CONTINUED Daiwa Bank 91,000 $ 106 Daiwa House Industry 25,000 203 Daiwa Kosho Lease 20,000 52 Daiwa Securities Group 55,000 601 Denso 38,000 740 East Japan Railway 161 958 Ebara 14,000 126 Eisai 12,000 297 Fanuc 9,600 516 Fuji Machine Manufacturing 1,500 33 Fuji Photo Film 21,000 885 Fuji Television Network 17 118 Fujitsu 76,000 987 Furukawa Electric 27,000 289 Gunma Bank 24,000 110 Gunze 18,000 75 Hankyu Department Store 10,000 51 Haseko* 62,000 26 Hirose Electric 1,600 144 Hitachi 133,000 1,370 Hokuriku Bank* 26,000 48 Honda Motor 39,000 1,641 Hoya 4,800 343 Isetan 10,000 108 Itochu 47,000 187 Ito-Yokado 16,000 839 Japan Airlines 75,000 260 Japan Energy 57,000 139 Japan Steel Works* 34,000 36 Japan Tobacco 81 571 Joyo Bank 38,300 117 Jusco 13,000 289 Kadokawa Shoten Publishing 900 17 Kajima 58,000 161 Kaken Pharmaceutical 7,000 70 Kamigumi 17,000 78 Kanebo* 31,000 82 Kaneka 15,000 141 Kansai Electric Power 43,300 754 Kao 25,000 652 Kawasaki Heavy Industries* 70,000 101 Kawasaki Kisen Kaisha 36,000 65 Kawasaki Steel 134,000 150 Kinki Nippon Railway 77,250 301 Kirin Brewery 41,000 391 Komatsu 40,000 198 Konami 4,700 243 Koyo Seiko 11,000 58 Kubota 61,000 226 Kuraray 19,000 141 Kurita Water Industries 6,000 87 Kyocera 7,400 691 43 STATEMENT OF NET ASSETS -------------------------------------------------------------------------------- STI CLASSIC EQUITY FUNDS MAY 31, 2001 INTERNATIONAL EQUITY INDEX FUND--CONTINUED -------------------------------------------------------------------------------- SHARES VALUE (000) -------------------------------------------------------------------------------- JAPAN--CONTINUED Kyowa Hakko Kogyo 18,000 $ 126 Maeda Road Construction 18,000 75 Marubeni* 64,000 121 Marui 16,000 238 Matsushita Electric Industrial 83,000 1,523 Meiji Seika Kaisha 19,000 102 Minebea 14,000 103 Mitsubishi 60,000 477 Mitsubishi Chemical 100,000 297 Mitsubishi Electric 86,000 483 Mitsubishi Estate 54,000 519 Mitsubishi Heavy Industries 140,000 596 Mitsubishi Materials 46,000 116 Mitsubishi Tokyo Finance Group* 226 2,130 Mitsui 72,000 475 Mitsui Fudosan 35,000 333 Mitsui Marine & Fire Insurance 37,000 209 Mitsui Mining & Smelting 27,000 145 Mitsukoshi 22,000 99 Mizuho Holding 334 1,701 Murata Manufacturing 9,400 748 Mycal 23,000 31 Namco 1,900 41 NEC 67,000 1,098 NGK Insulators 15,000 158 NGK Spark Plug 10,000 111 Nidec 2,600 158 Nikon 13,000 147 Nintendo 5,600 1,084 Nippon Express 50,000 241 Nippon Mitsubishi Oil 62,000 390 Nippon Sheet Glass 19,000 160 Nippon Shinpan* 17,000 37 Nippon Steel 335,000 555 Nippon Suisan Kaisha 24,000 45 Nippon Telegraph & Telephone 518 3,209 Nippon Unipac Holding* 42 264 Nippon Yusen Kabushiki Kaisha 55,000 225 Nishimatsu Construction 25,000 97 Nissan Motor 157,000 1,065 Nissin Food Products 5,100 108 Nitto Denko 6,800 208 Nomura Securities 80,000 1,606 Noritake 13,000 68 NSK 28,000 143 NTN 25,000 69 Obayashi 40,000 162 OJI Paper 48,000 264 Okumura 14,000 56 Olympus Optical 11,000 169 Omron 10,000 178 ------------------------------------------------------------------------------- SHARES VALUE (000) ------------------------------------------------------------------------------- JAPAN--CONTINUED Orient* 19,000 $ 37 Oriental Land 4,100 315 Orix 3,420 355 Osaka Gas 112,000 361 Oyo 3,000 33 Penta-Ocean Constrution 35,000 55 Pioneer 7,000 211 Promise 5,100 405 Rohm 4,600 823 Sanden 10,000 44 Sankyo 19,000 388 Sanrio 3,400 46 Sanyo Electric 79,000 529 Secom 9,000 525 Sega* 6,600 121 Seino Transportation 14,000 77 Seiyu* 13,000 42 Sekisui Chemical 24,000 93 Sekisui House 33,000 302 Sharp 45,000 645 Shimachu 2,400 34 Shimamura 1,200 73 Shimano 6,100 96 Shimizu 46,000 175 Shin-Etsu Chemical 18,000 697 Shionogi 16,000 356 Shiseido 18,000 182 Shizuoka Bank 32,000 277 Skylark 5,000 149 SMC 3,000 362 Snow Brand Milk Products* 12,000 43 Softbank 13,400 510 Sony 36,300 2,801 Sumitomo 37,000 265 Sumitomo Chemical 76,000 379 Sumitomo Electric Industries 34,000 454 Sumitomo Marine & Fire 26,000 159 Sumitomo Metal Industries* 177,000 119 Sumitomo Mitsui Banking 223,800 1,904 Taisei 54,000 127 Taisho Pharmaceutical 14,000 282 Taiyo Yuden 5,000 154 Takara Shuzo 9,000 123 Takashimaya 13,000 92 Takeda Chemical Industries 36,000 1,833 Takefuji 5,900 521 Teijin 41,000 247 Terumo 8,200 153 TIS 1,900 77 Tobu Railway 53,000 164 Toei 6,000 22 44 -------------------------------------------------------------------------------- SHARES VALUE (000) -------------------------------------------------------------------------------- JAPAN--CONTINUED Toho 800 $ 97 Tohoku Electric Power 22,800 338 Tokio Marine & Fire Insurance 62,000 651 Tokyo Broadcasting System 3,000 71 Tokyo Dome* 16,000 53 Tokyo Electric Power 51,500 1,318 Tokyo Electron 6,900 474 Tokyo Gas 129,000 382 Tokyu 52,000 281 Toppan Printing 34,000 376 Toray Industries 72,000 324 Toshiba 133,000 756 Tosoh 24,000 78 Tostem 10,000 174 Toto 20,700 156 Toyo Seikan Kaisha 11,300 174 Toyota Motor 147,100 5,200 Trans Cosmos 1,000 49 Ube Industries 49,000 112 Uni-Charm 2,700 103 UNY 8,000 91 World 1,850 58 Yamaha 10,000 104 Yamaichi Securities* 15,000 -- Yamanouchi Pharmaceutical 15,000 442 Yamato Transport 18,000 397 Yokogawa Electric 12,000 120 -------- 78,041 -------- NETHERLANDS (2.8%) ABN Amro Holding 23,599 451 Aegon 20,812 553 Akzo Nobel 4,635 200 ASML Lithography Holding* 7,186 166 Buhrmann 1,798 29 Elsevier 11,117 137 Getronics 5,198 25 Hagemeyer 1,541 33 Heineken 6,281 254 ING Groep 15,648 1,021 Koninklijke Ahold 11,892 362 Koninklijke Philips Electronics 19,966 547 Qiagen* 7,300 177 Royal Dutch Petroleum 33,484 2,034 Royal KPN* 16,964 159 TNT Post Group 7,710 172 Unilever 9,202 510 Wolters Kluwer 4,471 115 -------- 6,945 -------- ------------------------------------------------------------------------------- SHARES VALUE (000) ------------------------------------------------------------------------------- NEW ZEALAND (0.2%) Carter Holt Harvey 260,100 $ 185 Telecom of New Zealand 185,785 413 -------- 598 -------- NORWAY (1.3%) Bergesen, Cl A 8,750 186 DnB Holding 87,900 372 Frontline* 8,100 166 Kvaerner* 8,800 69 Merkantildata* 18,600 46 Norsk Hydro 28,025 1,171 Opticom* 1,200 90 Orkla 23,900 421 Petroleum Geo-Services* 11,600 129 Schibsted 7,200 74 Storebrand 32,387 242 Tomra Systems 16,400 277 -------- 3,243 -------- PORTUGAL (0.8%) Banco Comercial Portugues* 104,823 415 Banco Espirito Santo 10,518 143 BPI-SGPS 33,944 91 Brisa-Auto Estradas de Portugal 16,448 149 Cimpor Cimentos de Portugal 8,726 181 Electricidade de Portugal 163,665 404 Portugal Telecom SGPS* 62,248 493 Sonae SGPS 109,856 94 -------- 1,970 -------- SINGAPORE (0.6%) Chartered Semiconductor Manufacturing* 20,000 56 DBS Group Holdings 35,467 284 Oversea-Chinese Banking 36,350 219 Singapore Airlines 31,000 219 Singapore Press Holdings 11,000 119 Singapore Technologies Engineering 59,000 83 Singapore Telecommunications 152,000 141 United Overseas Bank 42,000 267 -------- 1,388 -------- SPAIN (4.6%) Acerinox 3,658 115 ACS 3,460 94 Aguas de Barcelona 7,732 117 Altadis 15,026 187 Autopistas Concesionaria Espanola* 16,885 170 Banco Bilbao Vizcaya Argentaria 148,033 2,020 Banco Santander Central Hispano 213,451 2,035 45 STATEMENT OF NET ASSETS ================================================================================ STI CLASSIC EQUITY FUNDS MAY 31, 2001 INTERNATIONAL EQUITY INDEX FUND--CONTINUED -------------------------------------------------------------------------------- SHARES VALUE (000) -------------------------------------------------------------------------------- SPAIN--CONTINUED Endesa 51,273 $ 837 Fomento de Construcciones y Contratas* 6,120 124 Gas Natural SDG 18,796 293 Grupo Dragados 9,619 121 Iberdrola 42,385 550 Repsol YPF 56,618 1,011 Sol Melia* 9,872 89 Telefonica* 210,191 3,095 Telepizza* 10,883 21 Union Electrica Fenosa* 15,273 273 Zardoya-Otis 13,611 126 Zeltia* 9,311 99 --------- 11,377 --------- SWEDEN (1.1%) Assa Abloy, Cl B 7,200 110 Atlas Copco, Cl A 4,200 85 Electrolux, Cl B 7,100 105 Hennes & Mauritz, Cl B 15,900 256 OM 1,600 29 Sandvik 6,600 139 Securitas, Cl B 7,500 136 Skandia Forsakrings 19,100 202 Skandinaviska Enskilda Banken, Cl A 13,300 123 Skanska, Cl B 3,200 122 Svenska Cellulosa, Cl B 6,500 142 Svenska Handelsbanken, Cl A 14,000 195 Swedish Match 12,100 56 Tele2, Cl B* 2,100 79 Telefonaktiebolaget LM Ericsson, Cl B 134,200 854 Volvo, Cl B 7,250 114 Wm-Data, Cl B 9,500 37 --------- 2,784 --------- SWITZERLAND (2.1%) ABB 13,932 250 Adecco 2,300 131 Credit Suisse Group 2,870 520 Givaudan 141 38 Holcim, Cl B 600 125 Nestle 377 780 Novartis 27,960 1,064 Roche Holding, Bearer Shares 1,700 150 Roche Holding, Genuss Shares 7,500 566 Swiss Re 125 242 Swisscom 850 207 Syngenta* 997 49 UBS 4,558 681 Zurich Financial Services 701 235 --------- 5,038 --------- -------------------------------------------------------------------------------- SHARES VALUE (000) -------------------------------------------------------------------------------- UNITED KINGDOM (11.2%) 3I Group 13,747 $ 237 Abbey National 22,104 381 Amvescap 14,281 260 ARM Holdings* 14,636 70 AstraZeneca 30,048 1,419 BAE Systems 62,499 311 Barclays 27,865 837 Bass 19,333 214 BG Group 72,340 281 BOC Group 13,117 198 Boots 20,223 172 BP 404,762 3,577 British American Tobacco 42,210 324 British SKY Broadcasting* 34,022 347 British Telecommunications 118,410 732 Cadbury Schweppes 48,699 315 Centrica 53,452 185 CGNU 27,370 359 CMG 10,480 64 Compass Group* 45,169 334 Diageo 61,871 668 Dixons Group 25,928 88 EMI Group 21,633 136 Exel 6,422 71 GKN 19,452 206 GlaxoSmithKline 102,085 2,773 Granada 45,169 109 Great Universal Stores 20,623 173 Halifax Group 37,086 421 Hanson 17,993 127 Hays 36,376 163 HSBC Holdings 158,213 1,973 Imperial Chemical Industries 22,274 142 International Power* 24,731 109 Invensys 98,901 200 J. Sainsbury 35,486 219 Jefferson Smurfit Group 170,800 308 Kingfisher 27,232 172 Lattice Group 65,157 125 Legal & General Group 116,977 255 Lloyds TSB Group 80,783 803 Logica 7,167 90 Marconi 43,528 219 Marks & Spencer 60,210 214 Misys 11,175 89 National Grid Group 18,415 147 Pearson 11,515 214 Prudential 37,113 422 Psion 9,179 17 Reed International 19,002 165 Rentokil Initial 22,492 69 Reuters Group 28,395 397 46 -------------------------------------------------------------------------------- SHARES VALUE (000) -------------------------------------------------------------------------------- UNITED KINGDOM--CONTINUED Rio Tinto 20,717 $ 413 Royal Bank of Scotland Group 43,437 1,000 Sage Group* 15,051 61 Scottish Power 41,708 303 Tesco 121,684 430 Unilever 50,214 383 Vodafone Group 1,095,668 2,821 WPP Group 18,604 203 --------- 27,515 --------- Total Foreign Common Stocks (Cost $264,071) 238,501 --------- FOREIGN PREFERRED STOCKS (0.9%) AUSTRALIA (0.3%) News Corporation 73,160 562 --------- GERMANY (0.6%) Hugo Boss 400 125 Prosieben SAT.1 Media 8,200 139 RWE 2,080 62 SAP 6,700 943 Volkswagen 5,500 175 --------- 1,444 --------- ITALY (0.0%) Fiat 6,000 84 --------- Total Foreign Preferred Stocks (Cost $2,663) 2,090 --------- FOREIGN RIGHTS (0.0%) AUSTRALIA (0.0%) Banca Popolare di Milano* 15,500 3 --------- Total Foreign Rights (Cost $0) 3 --------- Total Investments (98.2%) (Cost $266,734) 240,594 --------- OTHER ASSETS AND LIABILITIES, NET (1.8%) 4,450 --------- -------------------------------------------------------------------------------- VALUE (000) -------------------------------------------------------------------------------- NET ASSETS: Fund shares of the Trust Shares (unlimited authorization -- no par value) based on 21,187,394 outstanding shares of beneficial interest $286,563 Fund shares of the Investor Shares (unlimited authorization -- no par value) based on 312,339 outstanding shares of beneficial interest 2,225 Fund shares of the Flex Shares (unlimited authorization -- no par value) based on 432,704 outstanding shares of beneficial interest 5,812 Distributions in excess of net investment income (611) Accumulated net realized loss on investments (22,809) Net unrealized depreciation on investments (26,140) Net unrealized appreciation on foreign currency and translation of other assets and liabilities in foreign currency investments 4 --------- Total Net Assets (100.0%) $245,044 ========= Net Asset Value, Offering and Redemption Price Per Share-- Trust Shares $11.18 ========= Net Asset Value and Redemption Price Per Share-- Investor Shares $11.05 ========= Maximum Offering Price Per Share-- Investor Shares ($11.05 / 96.25%) $11.48 ========= Net Asset Value, Offering Price and Redemption Price Per Share-- Flex Shares (1) $10.93 ========= 47 STATEMENT OF NET ASSETS ================================================================================ STI CLASSIC EQUITY FUNDS MAY 31, 2001 INTERNATIONAL EQUITY INDEX FUND--CONCLUDED -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- At May 31, 2001, sector diversification of the Fund was as follows (Unaudited): % OF VALUE SECTOR DIVERSIFICATION NET ASSETS (000) ---------------------- ---------- ----- FOREIGN COMMON STOCKS Banking 14.4% $ 35,193 Electronics 9.0 21,982 Pharmaceuticals 6.7 16,315 Telephones 6.3 15,394 Insurance 6.2 15,179 Oil & Gas 5.9 14,396 Automotive 5.5 13,387 Food, Beverage and Tobacco 4.5 11,022 Telecommunications 4.3 10,420 Diversified Operations 3.9 9,579 Financial Services 2.9 7,013 Chemicals 2.9 7,008 Retail 2.6 6,257 Construction Materials 2.2 5,386 Transportation 2.0 4,831 Audio/Video 1.9 4,759 News Media 1.5 3,567 Consumer Products 1.5 3,782 Services 1.5 3,636 Utilities 1.3 3,214 Cosmetics & Toiletries 1.1 2,665 Computer Software 1.0 2,437 Real Estate 1.0 2,361 Metals 0.8 2,073 Manufacturing 0.8 2,034 Machinery 0.8 2,014 Leisure 0.7 1,796 Computers 0.7 1,770 Paper Products 0.7 1,670 Airlines 0.7 1,635 Mining & Minerals 0.6 1,516 Television 0.5 1,236 Textiles 0.3 861 Medical Products 0.2 846 Publishing 0.2 717 Aerospace 0.1 311 Distribution 0.1 150 Agricultural -- 89 ------ -------- TOTAL FOREIGN COMMON STOCKS 97.3 238,501 TOTAL FOREIGN PREFERRED STOCKS 0.9 2,090 FOREIGN RIGHTS -- 3 ------ -------- TOTAL INVESTMENTS 98.2 240,594 OTHER ASSETS AND LIABILITIES, NET 1.8 4,450 ------ -------- NET ASSETS 100.0% $245,044 ====== ======== THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS. FOR DESCRIPTIONS OF ABBREVIATIONS, PLEASE SEE PAGE 64. 48 ================================================================================ LIFE VISION AGGRESSIVE GROWTH FUND -------------------------------------------------------------------------------- SHARES VALUE (000) -------------------------------------------------------------------------------- EQUITY FUNDS (96.9%) STI Classic Capital Appreciation Fund, Trust Shares 570,913 $ 7,930 STI Classic Growth and Income Fund, Trust Shares 261,577 3,937 STI Classic International Equity Index Fund, Trust Shares 352,106 3,937 STI Classic Mid-Cap Equity Fund, Trust Shares 42,779 468 STI Classic Small Cap Growth Stock Fund, Trust Shares 78,368 1,440 STI Classic Small Cap Value Equity Fund, Trust Shares 122,040 1,490 STI Classic Value Income Stock Fund, Trust Shares 344,007 3,994 --------- Total Equity Funds (Cost $22,314) 23,196 --------- MONEY MARKET FUND (3.1%) STI Classic Prime Quality Money Market Fund, Trust Shares 734,335 734 --------- Total Money Market Fund (Cost $734) 734 --------- Total Investments (100.0%) (Cost $23,048) 23,930 --------- OTHER ASSETS AND LIABILITIES, NET (0.0%) 6 --------- NET ASSETS: Fund shares of the Trust Shares (unlimited authorization -- no par value) based on 2,322,034 outstanding shares of beneficial interest 23,330 Accumulated net realized loss on investments (276) Net unrealized appreciation on investments 882 --------- Total Net Assets (100.0%) $ 23,936 ========= Net Asset Value, Offering and Redemption Price Per Share -- Trust Shares $10.31 ========= THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS. FOR DESCRIPTIONS OF ABBREVIATIONS, PLEASE SEE PAGE 64. 49 STATEMENT OF NET ASSETS ================================================================================ STI CLASSIC EQUITY FUNDS MAY 31, 2001 LIFE VISION GROWTH AND INCOME FUND -------------------------------------------------------------------------------- SHARES VALUE (000) -------------------------------------------------------------------------------- EQUITY FUNDS (73.6%) STI Classic Capital Appreciation Fund, Trust Shares 315,222 $ 4,378 STI Classic Growth and Income Fund, Trust Shares 407,340 6,131 STI Classic International Equity Index Fund, Trust Shares 485,180 5,424 STI Classic Mid-Cap Equity Fund, Trust Shares 66,668 730 STI Classic Small Cap Growth Stock Fund, Trust Shares 127,092 2,335 STI Classic Small Cap Value Equity Fund, Trust Shares 197,592 2,413 STI Classic Value Income Stock Fund, Trust Shares 535,702 6,220 --------- Total Equity Funds (Cost $25,741) 27,631 --------- FIXED INCOME FUNDS (23.2%) STI Classic Investment Grade Bond Fund, Trust Shares 462,682 4,733 STI Classic Limited-Term Federal Mortgage Securities Fund, Trust Shares 199,913 2,001 STI Classic Short-Term Bond Fund, Trust Shares 199,509 2,003 --------- Total Fixed Income Funds (Cost $8,453) 8,737 --------- MONEY MARKET FUND (3.1%) STI Classic Prime Quality Money Market Fund, Trust Shares 1,150,377 1,150 --------- Total Money Market Fund (Cost $1,150) 1,150 --------- Total Investments (99.9%) (Cost $35,344) 37,518 --------- OTHER ASSETS AND LIABILITIES, NET (0.1%) 32 --------- -------------------------------------------------------------------------------- VALUE (000) -------------------------------------------------------------------------------- NET ASSETS: Fund shares of the Trust Shares (unlimited authorization -- no par value) based on 3,603,491 outstanding shares of beneficial interest $ 36,710 Accumulated net realized loss on investments (1,334) Net unrealized appreciation on investments 2,174 --------- Total Net Assets (100.0%) $ 37,550 ========= Net Asset Value, Offering and Redemption Price Per Share -- Trust Shares $10.42 ========= THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS. FOR DESCRIPTIONS OF ABBREVIATIONS, PLEASE SEE PAGE 64. 50 ================================================================================ LIFE VISION MODERATE GROWTH FUND -------------------------------------------------------------------------------- SHARES VALUE (000) -------------------------------------------------------------------------------- EQUITY FUNDS (57.8%) STI Classic Capital Appreciation Fund, Trust Shares 786,095 $ 10,919 STI Classic Growth and Income Fund, Trust Shares 355,361 5,348 STI Classic International Equity Index Fund, Trust Shares 1,002,007 11,202 STI Classic Mid-Cap Equity Fund, Trust Shares 116,700 1,278 STI Classic Small Cap Growth Stock Fund, Trust Shares 220,565 4,052 STI Classic Small Cap Value Equity Fund, Trust Shares 342,955 4,188 STI Classic Value Income Stock Fund, Trust Shares 473,664 5,499 --------- Total Equity Funds (Cost $41,497) 42,486 --------- FIXED INCOME FUNDS (38.9%) STI Classic Investment Grade Bond Fund, Trust Shares 1,265,953 12,951 STI Classic Limited-Term Federal Mortgage Securities Fund, Trust Shares 777,791 7,786 STI Classic Short-Term Bond Fund, Trust Shares 776,221 7,793 --------- Total Fixed Income Funds (Cost $27,628) 28,530 --------- MONEY MARKET FUND (3.1%) STI Classic Prime Quality Money Market Fund, Trust Shares 2,298,007 2,298 --------- Total Money Market Fund (Cost $2,298) 2,298 --------- Total Investments (99.8%) (Cost $71,423) 73,314 --------- OTHER ASSETS AND LIABILITIES, NET (0.2%) 115 --------- -------------------------------------------------------------------------------- VALUE (000) -------------------------------------------------------------------------------- NET ASSETS: Fund shares of the Trust Shares (unlimited authorization -- no par value) based on 7,547,622 outstanding shares of beneficial interest $ 73,483 Undistributed net investment income 271 Accumulated net realized loss on investments (2,216) Net unrealized appreciation on investments 1,891 --------- Total Net Assets (100.0%) $ 73,429 ========= Net Asset Value, Offering and Redemption Price Per Share -- Trust Shares $9.73 ========= THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS. FOR DESCRIPTIONS OF ABBREVIATIONS, PLEASE SEE PAGE 64. 51 STATEMENT OF NET ASSETS ================================================================================ STI CLASSIC EQUITY FUNDS MAY 31, 2001 MID-CAP EQUITY FUND -------------------------------------------------------------------------------- SHARES VALUE (000) -------------------------------------------------------------------------------- COMMON STOCKS (85.6%) BASIC MATERIALS (6.7%) Bowater 47,700 $ 2,299 Cytec Industries* 45,700 1,615 HB Fuller 31,200 1,425 Potash of Saskatchewan 8,500 519 Praxair 36,600 1,841 Stillwater Mining* 140,900 4,481 --------- 12,180 --------- CAPITAL GOODS (6.1%) ACT Manufacturing* 41,700 695 Optimal Robotics* 161,550 4,816 PerkinElmer 15,600 1,077 SPX* 37,800 4,487 --------- 11,075 --------- COMMUNICATION SERVICES (4.0%) Commscope* 83,600 1,974 Dobson Communications, Cl A* 61,700 938 Leap Wireless International* 34,200 1,057 Sirius Satellite Radio* 9,300 128 Western Wireless, Cl A* 71,400 2,847 XM Satellite Radio Holdings, Cl A* 20,550 318 --------- 7,262 --------- COMPUTER SOFTWARE (2.6%) Citrix Systems* 61,900 1,479 Electronic Arts* 9,700 571 Intuit* 15,000 481 J.D. Edwards* 68,800 743 Legato Systems* 33,800 505 Rational Software* 40,600 978 --------- 4,757 --------- CONSUMER CYCLICALS (10.3%) Abercrombie & Fitch, Cl A* 47,400 1,954 American Eagle Outfitters* 49,050 1,803 Cheesecake Factory* 14,500 504 Darden Restaurants 31,000 865 Emmis Communications, Cl A* 48,900 1,512 Hispanic Broadcasting* 52,900 1,309 Men's Wearhouse* 145,850 3,906 Payless Shoesource* 13,600 923 Radio One, Cl D* 71,600 1,277 RadioShack 48,300 1,315 Rare Hospitality International* 13,200 307 Six Flags* 64,400 1,449 Tweeter Home Entertainment Group* 53,800 1,453 --------- 18,577 --------- -------------------------------------------------------------------------------- SHARES VALUE (000) -------------------------------------------------------------------------------- CONSUMER STAPLES (3.5%) Earthgrains 48,100 $ 1,248 Outback Steakhouse* 18,000 513 Sensient Technologies 123,000 2,339 Suiza Foods* 42,200 2,192 --------- 6,292 --------- ENERGY (6.9%) BJ Services* 10,900 818 Bouygues Offshore ADR 21,600 551 Ensco International 21,200 683 Global Marine* 28,100 721 Marine Drilling* 36,100 939 Mitchell Energy & Development, Cl A 12,700 687 Nabors Industries* 9,100 463 National-Oilwell* 21,500 742 Noble Drilling* 17,400 743 Ocean Energy 95,500 1,815 Precision Drilling* 60,700 2,503 Smith International* 10,900 847 Veritas DGC* 25,600 896 --------- 12,408 --------- FINANCE (13.3%) AG Edwards 19,000 808 Colonial Bancgroup 47,400 589 Conseco* 50,400 878 Hibernia, Cl A 233,200 3,797 M&T Bank 14,500 1,095 Marshall & Ilsley 53,700 2,744 North Fork Bancorporation 106,500 3,040 Protective Life 32,600 1,074 Safeco 99,700 2,801 SouthTrust 184,400 4,604 Sovereign Bancorp 106,200 1,203 Zions Bancorporation 29,100 1,575 --------- 24,208 --------- HEALTH CARE (15.2%) Affymetrix* 17,800 699 Barr Laboratories* 36,000 2,566 Cephalon* 17,200 1,042 Gilead Sciences* 29,000 1,501 Health Management Associates, Cl A* 216,300 3,841 Idec Pharmaceuticals* 16,800 1,035 King Pharmaceuticals* 140,612 7,112 Millennium Pharmaceuticals* 20,100 767 Protein Design Labs* 19,200 1,425 Province Healthcare* 14,200 382 Renal Care Group* 145,200 4,134 52 -------------------------------------------------------------------------------- SHARES/FACE AMOUNT (000) VALUE (000) -------------------------------------------------------------------------------- HEALTH CARE--CONTINUED Sepracor* 26,700 $ 890 Teva Pharmaceutical Industries ADR 36,800 2,126 --------- 27,520 --------- TECHNOLOGY (14.7%) Aeroflex* 40,300 480 Antec* 38,500 450 Applied Micro Circuits* 12,800 231 Cabot Microelectronics* 21,000 1,349 Cadence Design Systems* 40,100 848 Caliper Technologies* 47,000 1,226 Cerner* 25,600 1,073 Concurrent Computer* 380,600 2,325 Cree* 59,400 1,705 I-many* 32,000 538 Instinet Group* 1,700 32 Integrated Circuit Systems* 13,700 225 Integrated Device Technology* 28,800 1,055 LSI Logic* 78,013 1,428 QLogic* 10,600 541 RF Micro Devices* 33,100 863 Sawtek* 80,500 1,606 Seachange International* 155,800 2,957 Stratos Lightwave* 121,000 1,377 Symbol Technologies 85,975 2,205 Virata* 120,500 1,235 Waters* 15,400 765 Zoran* 114,400 2,160 --------- 26,674 --------- TRANSPORTATION (0.7%) Forward Air* 43,700 1,333 --------- UTILITIES (1.6%) Equitable Resources 38,400 2,849 --------- Total Common Stocks (Cost $142,239) 155,135 --------- PREFERRED STOCK (1.4%) Adelphia Communications* 21,300 2,609 --------- Total Preferred Stock (Cost $2,543) 2,609 --------- CONVERTIBLE BONDS (7.7%) ACT Manufacturing CV to 23.3100 Shares, Callable 04/30/03 @ 103.5 7.000%, 04/15/07 $1,650 1,029 -------------------------------------------------------------------------------- FACE AMOUNT (000) VALUE (000) -------------------------------------------------------------------------------- Adelphia Communications CV to 18.0213 Shares, Callable 02/16/04 @ 100 6.000%, 02/15/06 $1,320 $ 1,261 Adelphia Communications CV to 22.8530 Shares, Callable 05/03/21 @ 100 3.250%, 05/01/21 675 726 Affymetrix CV to 16.2602 Shares, Callable 10/07/02 @ 102.5 5.000%, 10/01/06 770 722 DR Horton CV to 17.4927 Shares, Callable 05/14/03 @ 55.97 (A) 3.276%, 05/11/21 2,000 1,008 Human Genome Sciences CV to 17.7778 Shares, Callable 02/06/03 @ 102.5 5.000%, 02/01/07 2,865 3,932 Lennar CV to 6.3892 Shares, Callable 04/06/06 @ 100 (A) 5.191%, 04/04/21 2,100 688 Sepracor CV to 10.8249 Shares 5.000%, 02/15/07 3,350 2,018 SPX CV to 4.8116 Shares, Callable 02/06/06 @ 100 (A) (B) 2.769%, 02/06/21 1,750 1,133 XM Satellite Radio Holdings CV to 81.7995 Shares, Callable 03/03/04 @ 103.1 7.750%, 03/01/06 1,015 1,440 --------- Total Convertible Bonds (Cost $14,780) 13,957 --------- REPURCHASE AGREEMENT (2.8%) Deustche Bank 4.110%, dated 05/31/01, matures 06/01/01, repurchase price $5,146,622 (collateralized by U.S. Treasury Note: total market value $5,249,704) (D) 5,146 5,146 --------- Total Repurchase Agreement (Cost $5,146) 5,146 --------- Total Investments (97.5%) (Cost $164,708) 176,847 --------- OTHER ASSETS AND LIABILITIES, NET (2.5%) 4,490 --------- 53 STATEMENT OF NET ASSETS ================================================================================ STI CLASSIC EQUITY FUNDS MAY 31, 2001 MID-CAP EQUITY FUND--CONCLUDED -------------------------------------------------------------------------------- VALUE (000) -------------------------------------------------------------------------------- NET ASSETS: Fund shares of the Trust Shares (unlimited authorization -- no par value) based on 14,258,012 outstanding shares of beneficial interest $143,092 Fund shares of the Investor Shares (unlimited authorization -- no par value) based on 1,157,650 outstanding shares of beneficial interest 12,002 Fund shares of the Flex Shares (unlimited authorization -- no par value) based on 1,273,782 outstanding shares of beneficial interest 16,073 Accumulated net realized loss on investments (1,969) Net unrealized appreciation on investments 12,139 --------- Total Net Assets (100.0%) $181,337 ========= Net Asset Value, Offering and Redemption Price Per Share -- Trust Shares $10.95 ========= Net Asset Value and Redemption Price Per Share -- Investor Shares $10.64 ========= Maximum Offering Price Per Share -- Investor Shares ($10.64 / 96.25%) $11.05 ========= Net Asset Value, Offering and Redemption Price Per Share -- Flex Shares (1) $10.14 ========= THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS. FOR DESCRIPTIONS OF ABBREVIATIONS, PLEASE SEE PAGE 64. 54 ================================================================================ SMALL CAP GROWTH STOCK FUND -------------------------------------------------------------------------------- SHARES VALUE (000) -------------------------------------------------------------------------------- COMMON STOCKS (98.9%) BASIC MATERIALS (2.6%) DR Horton 40,000 $ 825 Eden Bioscience* 250,000 4,650 NVR* 5,000 863 Pulte 65,000 2,626 Standard-Pacific 50,000 922 Stillwater Mining* 151,000 4,802 --------- 14,688 --------- CAPITAL GOODS (11.2%) C&D Technologies 120,000 3,684 Copart* 245,000 5,880 Dal-Tile International* 234,000 3,744 EMCOR Group* 100,000 4,425 Global Power Equipment Group* 16,500 569 Granite Construction 100,000 2,725 Keith* 35,000 630 L-3 Communications Holdings* 40,000 3,540 Mastec* 104,600 1,681 Mettler Toledo International* 60,000 2,694 Newport 60,000 1,934 Precision Castparts 105,000 4,701 Quanta Services* 100,000 3,388 Rogers* 130,000 3,406 ROHN Industries* 300,000 1,776 Shaw Group* 165,000 9,699 Stewart & Stevenson Services 75,000 2,182 Toro 50,000 2,045 Trimble Navigation* 87,200 1,701 York International 75,000 2,644 --------- 63,048 --------- COMMUNICATION SERVICES (4.1%) Anaren Microwave* 120,000 1,986 Comtech Telecommunications* 101,000 1,389 Digital Lightwave* 70,003 3,261 Gentner Communications* 270,000 3,429 Illuminet Holdings* 32,000 952 Metro One Telecommunications* 120,000 5,401 Polycom* 30,000 744 Powerwave Technologies* 50,000 680 Symmetricom* 250,000 3,750 Tollgrade Communications* 50,000 1,595 Xeta Technologies* 45,800 243 --------- 23,430 --------- COMPUTER SOFTWARE (3.4%) Activision* 60,000 2,044 AremisSoft* 500,000 6,405 RADVision* 200,000 1,288 THQ* 160,000 7,760 -------------------------------------------------------------------------------- SHARES VALUE (000) -------------------------------------------------------------------------------- COMPUTER SOFTWARE--CONTINUED Verity* 100,000 $ 1,545 --------- 19,042 --------- CONSUMER CYCLICALS (20.8%) 4 Kids Entertainment* 280,600 4,770 American Eagle Outfitters* 125,000 4,594 Anchor Gaming* 60,000 3,820 Arctic Cat 150,000 2,137 Barnes & Noble* 200,000 6,430 Bebe Stores* 125,000 3,359 Buca* 110,000 2,398 CEC Entertainment* 75,000 3,247 Charlotte Russe Holding* 150,000 4,128 Cheesecake Factory* 85,000 2,955 Chico's FAS* 270,000 8,980 Christopher & Banks* 160,000 6,170 Circuit City Stores-Carmax* 456,000 6,776 Coach* 70,000 2,453 Columbia Sportswear* 60,000 4,206 Concord Camera* 82,500 673 Elizabeth Arden* 80,000 1,924 Fossil* 70,000 1,564 Genesco* 140,000 4,249 Jakks Pacific* 115,000 1,810 K-Swiss, Cl A 125,000 3,019 MTR Gaming Group* 289,900 2,742 Oakley* 90,000 2,259 O'Charleys* 100,000 1,740 Penn National Gaming* 215,000 4,347 Rare Hospitality International* 170,000 3,956 Rent-A-Center* 125,000 5,595 Scholastic* 70,000 2,796 Sonic* 110,000 2,739 Steven Madden* 300,000 4,836 Timberland, Cl A* 100,000 4,311 Ultimate Electronics* 90,000 2,223 --------- 117,206 --------- CONSUMER STAPLES (0.8%) Constellation Brands, Cl A* 80,000 3,092 Cott* 147,600 1,415 --------- 4,507 --------- ENERGY (11.5%) CAL Dive International* 180,000 5,112 Carbo Ceramics 110,000 3,954 Core Laboratories* 210,000 5,208 Eagle Geophysical* 1,285 -- Global Industries* 320,000 5,146 Key Energy Services* 310,000 4,247 Louis Dreyfus Natural Gas* 90,000 3,580 55 STATEMENT OF NET ASSETS ================================================================================ STI CLASSIC EQUITY FUNDS MAY 31, 2001 SMALL CAP GROWTH STOCK FUND--CONTINUED -------------------------------------------------------------------------------- SHARES VALUE (000) -------------------------------------------------------------------------------- ENERGY--CONTINUED Marine Drilling* 130,000 $ 3,380 Maverick Tube* 162,000 3,912 National-Oilwell* 90,000 3,105 Offshore Logistics* 145,000 3,057 Patterson-UTI Energy* 100,000 2,945 Rowan* 130,000 3,891 Seitel* 180,000 3,150 St. Mary Land & Exploration 90,000 1,994 Stone Energy* 10,000 525 Varco International* 240,000 5,782 Veritas DGC* 170,000 5,952 --------- 64,940 --------- FINANCE (11.8%) Actrade Financial Technologies* 150,000 5,979 Affiliated Managers Group* 69,530 3,895 Capitol Federal Financial 240,000 4,286 Corus Bankshares 76,500 3,722 Cullen/Frost Bankers 50,000 1,675 Doral Financial 230,000 6,320 Downey Financial 20,000 863 Harbor Florida Bancshares 150,000 2,477 Heller Financial, Cl A 70,000 2,408 IndyMac Bancorp* 90,000 2,093 Jefferies Group 110,000 3,361 LaBranche* 90,000 3,611 Metris 68,200 2,046 Net.B@nk* 173,000 1,825 OceanFirst Financial 88,000 2,072 Radian Group 74,999 6,367 Raymond James Financial 110,000 3,201 Renaissance Re Holdings 20,000 1,373 Sterling Bancshares 166,200 2,887 Texas Regional Bancshares, Cl A 38,500 1,426 Triad Guaranty* 80,000 2,840 Trustmark 97,760 2,137 --------- 66,864 --------- HEALTH CARE (13.5%) Barr Laboratories* 75,000 5,345 Covance* 181,300 3,330 Coventry Health Care* 170,000 2,873 Cryolife* 255,000 8,262 Cytyc* 200,000 4,360 Galen Holdings ADR 49,900 2,537 Mid Atlantic Medical Services* 250,000 4,130 North American Scientific* 95,000 1,734 Noven Pharmaceuticals* 224,710 6,939 Orthodontic Centers of America* 150,000 4,605 Pharmaceutical Product Development* 90,000 2,888 PolyMedica* 120,000 3,829 Priority Healthcare, Cl B* 90,000 3,112 -------------------------------------------------------------------------------- SHARES VALUE (000) -------------------------------------------------------------------------------- HEALTH CARE--CONTINUED Rightchoice Managed Care* 60,000 $ 2,340 SICOR* 350,000 6,013 Taro Pharmaceuticals Industries* 80,000 5,462 Thoratec* 310,000 3,379 Varian* 145,900 4,953 --------- 76,091 --------- SERVICES (0.9%) Carreker* 220,000 2,240 Corinthian Colleges* 67,150 2,945 --------- 5,185 --------- TECHNOLOGY (15.1%) Advanced Digital Information* 270,000 4,922 Advanced Power Technology* 150,000 1,928 Aeroflex* 160,000 1,907 Alliance Semiconductor* 70,000 885 Alpha Industries* 100,000 2,200 Ansys* 230,000 3,687 Asyst Technologies* 185,000 3,369 Avocent* 110,000 2,407 Axcelis Technologies* 190,000 2,823 Bel Fuse, Cl A* 33,000 967 Bel Fuse, Cl B 22,000 634 Cabot Microelectronics* 60,000 3,856 Catapult Communications* 61,500 1,968 Cree* 10,000 287 Dataram* 190,000 2,172 Excel Technology* 60,000 1,409 Filenet* 135,000 1,655 InFocus* 53,000 896 Integrated Silicon Solutions* 200,000 2,686 IXYS* 65,000 846 Kulicke & Soffa Industries* 170,000 2,516 Manhattan Associates* 110,000 3,631 Mentor Graphics* 140,000 3,682 Mercury Computer Systems* 74,970 3,576 Merix* 225,000 4,604 Orbotech* 80,000 2,846 Pericom Semiconductor* 195,600 2,871 Photon Dynamics* 100,000 3,152 Planar Systems* 100,000 2,258 Rudolph Technologies* 35,000 1,542 Semtech* 120,000 3,230 Sensormatic Electronics* 250,000 3,938 SonicWall* 100,000 1,646 Stratos Lightwave* 100,000 1,138 Technitrol 61,200 1,530 Three-Five Systems* 80,200 1,217 Virata* 28,000 287 --------- 85,168 --------- 56 -------------------------------------------------------------------------------- SHARES/FACE AMOUNT (000) VALUE (000) -------------------------------------------------------------------------------- TRANSPORTATION (3.2%) Airtran Holdings* 450,000 $ 4,842 Frontier Airlines* 100,000 1,551 JB Hunt Transport Services* 148,200 2,977 Landstar System* 50,000 3,320 Roadway 130,000 3,403 Skywest 70,000 1,988 --------- 18,081 --------- Total Common Stocks (Cost $446,481) 558,250 --------- RIGHTS (0.0%) Elan* 190,000 46 --------- Total Rights (Cost $0) 46 --------- WARRANTS (0.0%) Per-Se Technologies, Expires 07/08/03* 3,664 -- --------- Total Warrants (Cost $0) -- --------- REPURCHASE AGREEMENT (0.3%) Morgan Stanley Dean Witter 4.100%, dated 05/31/01, matures 06/01/01, repurchase price $1,769,293 (collateralized by FNMA obligation: total market value $1,816,110) (D) $ 1,769 1,769 --------- Total Repurchase Agreement (Cost $1,769) 1,769 --------- Total Investments (99.2%) (Cost $448,250) 560,065 --------- OTHER ASSETS AND LIABILITIES, NET (0.8%) 4,666 --------- -------------------------------------------------------------------------------- VALUE (000) -------------------------------------------------------------------------------- NET ASSETS: Fund shares of the Trust Shares (unlimited authorization -- no par value) based on 27,706,165 outstanding shares of beneficial interest $409,525 Fund shares of the Investor Shares (unlimited authorization -- no par value) based on 1,584,143 outstanding shares of beneficial interest 21,752 Fund shares of the Flex Shares (unlimited authorization -- no par value) based on 1,508,996 outstanding shares of beneficial interest 25,385 Accumulated net realized loss on investments (3,746) Net unrealized appreciation on investments 111,815 --------- Total Net Assets (100.0%) $564,731 ========= Net Asset Value, Offering and Redemption Price Per Share -- Trust Shares $18.37 ========= Net Asset Value and Redemption Price Per Share -- Investor Shares $18.26 ========= Maximum Offering Price Per Share -- Investor Shares ($18.26 / 96.25%) $18.97 ========= Net Asset Value, Offering and Redemption Price Per Share -- Flex Shares (1) $17.85 ========= THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS. FOR DESCRIPTIONS OF ABBREVIATIONS, PLEASE SEE PAGE 64. 57 STATEMENT OF NET ASSETS ================================================================================ STI CLASSIC EQUITY FUNDS MAY 31, 2001 SMALL CAP VALUE EQUITY FUND -------------------------------------------------------------------------------- SHARES VALUE (000) -------------------------------------------------------------------------------- COMMON STOCKS (85.3%) BASIC MATERIALS (18.4%) Agnico-Eagle Mines 253,400 $ 1,964 Arch Coal 110,200 3,400 Ball 106,800 5,073 Carpenter Technology 106,100 3,130 Celanese 197,500 4,140 Homestake Mining 295,400 1,911 Intertape Polymer Group 154,700 2,081 Lennox International 189,289 1,732 Lesco 254,100 3,070 Louisiana-Pacific 334,192 3,927 LSI Industries 206,100 5,379 Olin 150,400 2,829 Peabody Energy* 14,300 486 Pennzoil-Quaker State 744,100 11,273 SKF ADR 141,100 2,349 Soc Quimica y Minera de Chile ADR 117,100 2,576 Texas Industries 256,000 8,384 USX-U.S. Steel Group 357,300 6,975 Wausau-Mosinee Paper 56,100 757 Wellman 145,300 2,473 Worthington Industries 187,600 2,157 --------- 76,066 --------- CAPITAL GOODS (17.5%) ABM Industries 63,000 2,003 Allete 218,769 5,187 AO Smith 102,500 1,727 Aptargroup 75,000 2,472 BHA Group Holdings 102,500 1,497 Briggs & Stratton 68,800 2,977 C&D Technologies 102,800 3,156 Chemed 83,100 2,917 Church & Dwight 324,800 8,266 Cummins 80,700 3,418 Falcon Products 85,300 665 Fedders 62,100 309 Fedders, Cl A 206,000 906 Milacron 122,100 2,039 National Service Industries 106,600 2,702 Pioneer Standard Electronics 123,400 1,394 Quixote 256,500 6,464 Roper Industries 77,800 3,196 RPM 275,500 2,276 SPX* 22,268 2,643 Standard Register 125,500 2,071 Tecumseh Products, Cl A 47,000 2,447 Timken 118,400 2,096 Valspar 90,500 3,098 Western Resources 151,500 3,182 -------------------------------------------------------------------------------- SHARES VALUE (000) -------------------------------------------------------------------------------- CAPITAL GOODS--CONTINUED Woodhead Industries 96,100 $ 1,630 York International 41,800 1,473 --------- 72,211 --------- COMMUNICATIONS EQUIPMENT (3.0%) Harris 432,428 12,290 --------- CONSUMER CYCLICALS (8.9%) American Greetings, Cl A 499,400 6,262 Bassett Furniture Industries 188,300 2,636 Federal Signal 23,900 538 Harman International Industries 153,414 5,446 Intrawest 162,900 3,054 Midas 135,800 1,812 Movado Group 199,500 3,561 PEP Boys-Manny Moe & Jack 655,000 5,764 Phillips-Van Heusen 202,800 3,143 Spiegel, Cl A 269,400 2,050 Sturm Ruger 134,100 1,235 Wolverine World Wide 67,000 1,139 --------- 36,640 --------- CONSUMER STAPLES (2.9%) Ingles Markets, Cl A 219,300 2,232 Interstate Bakeries 273,300 4,086 Sensient Technologies 300,635 5,718 --------- 12,036 --------- ENERGY (1.8%) NUI 31,400 676 Penn Virginia 65,600 2,422 Piedmont Natural Gas 39,800 1,413 UGI 103,500 2,759 --------- 7,270 --------- FINANCE (14.9%) American Financial Group 148,100 4,160 Annuity and Life Re 33,700 1,154 Banner 78,800 1,592 City National 100,700 4,293 CNA Surety 222,200 3,135 Colonial Bancgroup 289,000 3,589 Community First Bankshares 141,065 3,079 Crawford, Cl A 3,300 31 FNB 126,260 3,062 Glacier Bancorp 226,134 4,278 Horizon Financial 150,165 1,667 Klamath First Bancorp 201,100 2,880 Mutual Risk Management 185,400 1,559 Pacific Northwest Bancorp 114,300 2,057 PXRE Group 176,800 3,076 58 -------------------------------------------------------------------------------- SHARES VALUE (000) -------------------------------------------------------------------------------- FINANCE--CONTINUED Riggs National Washington D.C. 196,200 $ 3,131 Scottish Annuity & Life Holdings 235,200 3,514 Seacoast Banking 93,500 3,084 Student Loan 43,800 2,930 Washington Federal 134,460 3,429 West Coast Bancorp-Oregon 257,153 3,330 White Mountains Insurance Group 4,000 1,384 Wilmington Trust 19,700 1,258 --------- 61,672 --------- HEALTH CARE (6.2%) Alpharma, Cl A 475,029 12,184 Cambrex 123,800 6,612 Mentor 261,700 6,930 --------- 25,726 --------- SERVICES (3.3%) Pittston Brink's Group 570,200 13,400 --------- TECHNOLOGY (3.7%) Autodesk 335,300 10,237 Fair Isaac 25,500 1,913 Helix Technology 117,600 3,319 --------- 15,469 --------- TRANSPORTATION (4.7%) CHC Helicopter, Cl A 47,200 662 Gatx 161,200 6,493 Knightsbridge Tankers 68,400 1,726 Oshkosh Truck 117,500 4,384 USFreightways 126,300 3,584 Wabash National 235,300 2,718 --------- 19,567 --------- Total Common Stocks (Cost $313,339) 352,347 --------- CASH EQUIVALENT (0.0%) SEI Daily Income Trust Prime Obligation Fund 37,201 37 --------- Total Cash Equivalent (Cost $37) 37 --------- -------------------------------------------------------------------------------- FACE AMOUNT (000) VALUE (000) -------------------------------------------------------------------------------- REPURCHASE AGREEMENT (17.3%) Morgan Stanley Dean Witter 4.100%, dated 05/31/01, matures 06/01/01, repurchase price $71,480,073 (collateralized by FNMA obligations: total market value $73,283,038) (D) $71,472 $ 71,472 --------- Total Repurchase Agreement (Cost $71,472) 71,472 --------- Total Investments (102.6%) (Cost $384,848) 423,856 --------- OTHER ASSETS AND LIABILITIES, NET (-2.6%) (10,789) --------- NET ASSETS: Fund shares of the Trust Shares (unlimited authorization -- no par value) based on 32,925,474 outstanding shares of beneficial interest 406,555 Fund shares of the Flex Shares (unlimited authorization -- no par value) based on 918,732 outstanding shares of beneficial interest 19,242 Undistributed net investment income 1,410 Accumulated net realized loss on investments (53,148) Net unrealized appreciation on investments 39,008 --------- Total Net Assets (100.0%) $413,067 ========= Net Asset Value, Offering and Redemption Price Per Share -- Trust Shares $12.21 ========= Net Asset Value, Offering and Redemption Price Per Share -- Flex Shares (1) $12.15 ========= THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS. FOR DESCRIPTIONS OF ABBREVIATIONS, PLEASE SEE PAGE 64. 59 STATEMENT OF NET ASSETS ================================================================================ STI CLASSIC EQUITY FUNDS MAY 31, 2001 TAX SENSITIVE GROWTH STOCK FUND -------------------------------------------------------------------------------- SHARES VALUE (000) -------------------------------------------------------------------------------- COMMON STOCKS (96.4%) BASIC MATERIALS (2.6%) Alcoa 227,910 $ 9,834 E.I. du Pont de Nemours 175,000 8,120 --------- 17,954 --------- CAPITAL GOODS (12.6%) Applied Materials* 210,703 10,520 Boeing 125,000 7,861 General Electric 529,344 25,938 Honeywell International 50,000 2,420 Minnesota Mining & Manufacturing 72,566 8,605 Tyco International 225,102 12,932 United Technologies 233,080 19,418 --------- 87,694 --------- COMMUNICATION SERVICES (6.5%) AT&T 150,000 3,175 AudioCodes* 150,000 1,194 BellSouth 52,443 2,162 JDS Uniphase* 437,597 7,312 Nortel Networks 198,410 2,645 Qualcomm* 51,262 3,114 Qwest Communications International* 150,000 5,511 SBC Communications 167,743 7,221 Verizon Communications 125,000 6,856 Viasat* 342,800 5,972 --------- 45,162 --------- COMPUTER SOFTWARE (2.6%) Oracle* 541,308 8,282 Veritas Software* 150,000 9,886 --------- 18,168 --------- CONSUMER CYCLICALS (11.7%) AOL Time Warner* 265,167 13,850 Charlotte Russe Holding* 175,000 4,816 Christopher & Banks* 175,000 6,748 Dress Barn* 125,000 3,140 Ford Motor* 214,688 5,228 Harley-Davidson 175,000 8,220 Home Depot 167,813 8,271 Liz Claiborne 50,000 7,765 Target 75,000 2,835 Walgreen 111,339 4,475 Wal-Mart Stores 255,881 13,242 Walt Disney 75,000 2,371 --------- 80,961 --------- CONSUMER STAPLES (5.8%) Anheuser-Busch 50,000 2,200 Coca-Cola 188,246 8,923 McDonald's 89,670 2,715 -------------------------------------------------------------------------------- SHARES VALUE (000) -------------------------------------------------------------------------------- CONSUMER STAPLES--CONTINUED Philip Morris 179,774 $ 9,242 Procter & Gamble 100,000 6,424 Sysco 350,000 10,405 --------- 39,909 --------- ENERGY (7.0%) Apache 75,000 4,466 Chevron 125,632 12,067 El Paso 35,000 2,132 Enron 60,000 3,175 Exxon Mobil 211,809 18,798 Royal Dutch Petroleum, NY Shares 134,975 8,231 --------- 48,869 --------- FINANCE (17.4%) American Express 126,180 5,315 American International Group 157,277 12,739 Bank of America 112,371 6,658 Bank of New York 100,000 5,461 Bank One 75,000 2,970 Charles Schwab 115,770 2,176 Citigroup 370,946 19,011 Fannie Mae 172,521 14,223 FleetBoston Financial 75,000 3,119 Freddie Mac 150,000 9,930 JP Morgan Chase 100,551 4,942 Paychex 72,898 2,801 US Bancorp 100,000 2,230 USA Education 125,000 8,764 Washington Mutual 225,000 8,015 Wells Fargo 258,269 12,159 --------- 120,513 --------- HEALTH CARE (14.4%) Abbott Laboratories 127,294 6,617 American Home Products 77,640 4,915 Amgen* 75,000 4,979 Biomet 175,000 7,817 Bristol-Myers Squibb 117,495 6,373 Eli Lilly 100,000 8,470 Johnson & Johnson 100,866 9,779 Medtronic 96,963 4,167 Merck 104,572 7,633 Pfizer 350,793 15,046 Pharmacia 100,000 4,856 Schering-Plough 121,383 5,092 Tenet Healthcare* 150,000 6,824 UnitedHealth Group 125,000 7,188 --------- 99,756 --------- 60 -------------------------------------------------------------------------------- SHARES/FACE AMOUNT (000) VALUE (000) -------------------------------------------------------------------------------- TECHNOLOGY (15.8%) Ansys* 190,000 $ 3,046 Automatic Data Processing 50,000 2,687 Catapult Communications* 100,000 3,200 Cisco Systems* 704,479 13,568 DSP Group* 150,000 2,705 EMC-Mass 274,720 8,681 Hewlett-Packard 100,000 2,932 Intel 384,886 10,396 International Business Machines 64,885 7,254 Linear Technology 146,291 7,022 Micrel* 150,000 4,578 Microchip Technology* 150,000 3,442 Microsoft* 334,428 23,136 SBS Technologies* 295,000 5,413 Sun Microsystems* 290,850 4,790 Texas Instruments 104,618 3,570 Zoran* 175,000 3,304 --------- 109,724 --------- Total Common Stocks (Cost $587,107) 668,710 --------- REPURCHASE AGREEMENT (3.0%) Morgan Stanley Dean Witter 4.100%, dated 05/31/01, matures 06/01/01, repurchase price $21,171,392 (collateralized by FHLMC and FNMA obligations: total market value $21,596,802)(D) $21,169 21,169 --------- Total Repurchase Agreement (Cost $21,169) 21,169 --------- Total Investments (99.4%) (Cost $608,276) 689,879 --------- OTHER ASSETS AND LIABILITIES, NET (0.6%) 3,928 --------- -------------------------------------------------------------------------------- VALUE (000) -------------------------------------------------------------------------------- NET ASSETS: Fund shares of the Trust Shares (unlimited authorization -- no par value) based on 17,211,896 outstanding shares of beneficial interest $497,651 Fund shares of the Flex Shares (unlimited authorization -- no par value) based on 8,945,258 outstanding shares of beneficial interest 286,709 Accumulated net investment loss (1,389) Accumulated net realized loss on investments (170,767) Net unrealized appreciation on investments 81,603 --------- Total Net Assets (100.0%) $693,807 ========= Net Asset Value, Offering and Redemption Price Per Share -- Trust Shares $26.74 ========= Net Asset Value, Offering and Redemption Price Per Share -- Flex Shares (1) $26.10 ========= THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS. FOR DESCRIPTIONS OF ABBREVIATIONS, PLEASE SEE PAGE 64. 61 STATEMENT OF NET ASSETS ================================================================================ STI CLASSIC EQUITY FUNDS MAY 31, 2001 VALUE INCOME STOCK FUND -------------------------------------------------------------------------------- SHARES VALUE (000) -------------------------------------------------------------------------------- COMMON STOCKS (91.9%) BASIC MATERIALS (5.3%) Alcoa 204,700 $ 8,833 International Paper 433,600 16,585 Praxair 165,700 8,333 Rohm & Haas 354,000 11,753 --------- 45,504 --------- CAPITAL GOODS (15.9%) Avnet 293,200 7,224 Cooper Industries 130,700 4,971 Dover 648,700 27,498 Emerson Electric 131,500 8,904 General Dynamics 123,300 9,558 Honeywell International 186,400 9,022 Ingersoll-Rand 206,800 10,206 Koninklijke Philips Electronics, NY Shares 450,400 12,476 Minnesota Mining & Manufacturing 77,100 9,143 Rockwell International 198,600 9,334 Tyco International 347,000 19,935 W.W. Grainger 178,900 7,906 --------- 136,177 --------- COMMUNICATION SERVICES (7.6%) Alltel 171,800 9,963 CenturyTel 267,700 7,613 SBC Communications 521,100 22,433 Sprint (FON Group) 87,000 1,767 Verizon Communications 420,410 23,059 --------- 64,835 --------- CONSUMER CYCLICALS (8.3%) Gannett 206,400 13,680 Gap 263,100 8,156 Genuine Parts 265,500 7,585 Limited 593,000 9,666 Masco 345,700 8,076 McGraw-Hill 244,800 15,701 Nike, Cl B 209,800 8,623 --------- 71,487 --------- CONSUMER STAPLES (5.3%) Clorox 310,500 10,756 Kimberly-Clark 284,600 17,204 PepsiCo 390,600 17,483 --------- 45,443 --------- -------------------------------------------------------------------------------- SHARES VALUE (000) -------------------------------------------------------------------------------- ENERGY (13.8%) BP ADR 441,200 $ 23,556 Conoco, Cl B 660,484 20,607 El Paso 234,527 14,283 Exxon Mobil 328,200 29,128 Phillips Petroleum 221,200 14,321 Texaco 223,000 15,922 --------- 117,817 --------- FINANCE (21.2%) Allstate 337,400 15,190 AMBAC Financial Group 155,100 8,693 American Express 271,700 11,444 American General 199,200 9,010 Amsouth Bancorporation 438,468 8,063 Bank of America 153,900 9,119 Chubb 239,300 18,031 Citigroup 539,500 27,649 FleetBoston Financial 326,547 13,581 Jefferson-Pilot 172,800 8,189 JP Morgan Chase 276,325 13,581 Keycorp 262,000 6,230 Morgan Stanley Dean Witter 129,700 8,432 PNC Financial Services Group 247,100 17,112 Torchmark 195,300 7,406 --------- 181,730 --------- HEALTH CARE (7.7%) Baxter International 268,800 13,273 Becton Dickinson 262,900 9,025 Johnson & Johnson 174,800 16,947 Pharmacia 346,194 16,811 Schering-Plough 237,500 9,963 --------- 66,019 --------- TECHNOLOGY (3.2%) Electronic Data Systems 222,900 13,653 International Business Machines 123,800 13,841 --------- 27,494 --------- UTILITIES (3.6%) Duke Energy 326,500 14,928 Scana 234,217 6,722 Williams 228,300 8,995 --------- 30,645 --------- Total Common Stocks (Cost $669,655) 787,151 --------- 62 -------------------------------------------------------------------------------- FACE AMOUNT (000) VALUE (000) -------------------------------------------------------------------------------- REPURCHASE AGREEMENTS (8.4%) Greenwich Capital 4.110%, dated 05/31/01, matures 06/01/01, repurchase price $30,224,952 (collateralized by FHLMC and FNMA obligations: total market value $30,828,949) (D) $30,222 $ 30,222 UBS Warburg 4.110%, dated 05/31/01, matures 06/01/01, repurchase price $41,237,018 (collateralized by FHLMC obligation: total market value $42,058,040) (D) 41,232 41,232 --------- Total Repurchase Agreements (Cost $71,454) 71,454 --------- Total Investments (100.3%) (Cost $741,109) 858,605 --------- OTHER ASSETS AND LIABILITIES, NET (-0.3%) (2,284) --------- -------------------------------------------------------------------------------- VALUE (000) -------------------------------------------------------------------------------- NET ASSETS: Fund shares of the Trust Shares (unlimited authorization -- no par value) based on 60,698,657 outstanding shares of beneficial interest $744,880 Fund shares of the Investor Shares (unlimited authorization -- no par value) based on 7,393,153 outstanding shares of beneficial interest 94,086 Fund shares of the Flex Shares (unlimited authorization -- no par value) based on 5,751,870 outstanding shares of beneficial interest 102,336 Undistributed net investment income 1,795 Accumulated net realized loss on investments (204,272) Net unrealized appreciation on investments 117,496 --------- Total Net Assets (100.0%) $856,321 ========= Net Asset Value, Offering and Redemption Price Per Share -- Trust Shares $11.61 --------- Net Asset Value and Redemption Price Per Share -- Investor Shares $11.58 ========= Maximum Offering Price Per Share -- Investor Shares ($11.58 / 96.25%) $12.03 ========= Net Asset Value, Offering and Redemption Price Per Share -- Flex Shares (1) $11.46 ========= THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS. FOR DESCRIPTIONS OF ABBREVIATIONS, PLEASE SEE PAGE 64. 63 ================================================================================ KEY TO ABBREVIATIONS USED IN THE STATEMENTS OF NET ASSETS AND SCHEDULE OF INVESTMENTS ADR American Depository Receipt Cl Class CV Convertible Security FHLMC Federal Home Loan Mortgage Corporation FNMA Federal National Mortgage Association GNMA Government National Mortgage Association MTN Medium Term Note RNC Risparmio Non-Convertible Ser Series * Non-income producing security (A) Zero Coupon Bond. The rate reported is the effective yield at time of purchase. (B) Private Placement Security (C) Adjustable rate security. The rate reported on the Statement of Net Assets is the rate in effect on May 31, 2001. (D) Tri-Party Repurchase Agreement (1) The Flex Shares have a contingent sales charge. For a description of a possible sales charge, see Notes to the Financial Statements. Amounts designated as "--" are either $0 or have been rounded to $0. 64 STATEMENT OF ASSETS AND LIABILITIES (000) ================================================================================ STI CLASSIC EQUITY FUNDS May 31, 2001
----------- E-COMMERCE OPPORTUNITY FUND ----------- Assets: Investments at Market Value (Cost $91,948) .......................................... $ 94,029 Receivable for Investment Securities Sold ........................................... 27,519 Receivable for Portfolio Shares Purchased ........................................... 199 Accrued Income ...................................................................... 36 -------- Total Assets ........................................................................ 121,783 -------- Liabilities: Payable for Investment Securities Purchased ......................................... 11,069 Accrued Expenses .................................................................... 951 Payable for Portfolio Shares Redeemed ............................................... 433 Payable to Custodian Bank ........................................................... 181 -------- Total Liabilities ................................................................... 12,634 -------- Total Net Assets .................................................................... $109,149 ======== Net Assets: Fund shares of the Trust Shares (unlimited authorization -- no par value) based on 6,523,816 outstanding shares of beneficial interest ..................... $114,948 Fund shares of the Flex Shares (unlimited authorization -- no par value) based on 1,680,828 outstanding shares of beneficial interest ..................... 32,313 Accumulated net realized loss on investments ........................................ (40,193) Net unrealized appreciation on investments .......................................... 2,081 -------- Total Net Assets .................................................................... $109,149 ======== Net Asset Value, Offering and Redemption Price Per Share -- Trust Shares ................ $13.34 ====== Net Asset Value, Offering and Redemption Price Per Share -- Flex Shares (1) ............. $13.15 ====== (1) The Flex Shares have a contingent sales charge. For a description of a possible sales charge, see notes to the financial statements.
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS. 65 STATEMENTS OF OPERATIONS (000) ================================================================================ STI CLASSIC EQUITY FUNDS FOR THE YEAR ENDED MAY 31, 2001
CAPITAL E-COMMERCE GROWTH AND BALANCED APPRECIATION OPPORTUNITY INCOME FUND FUND FUND FUND ------------ ------------ ----------- ---------- Income: Dividend Income ...................................................... $ 1,291 $ 10,818 $ 198 $ 13,833 Interest Income ...................................................... 8,150 2,571 849 899 Less: Foreign Taxes Withheld ......................................... -- -- -- -- -------- --------- -------- -------- Total Income ......................................................... 9,441 13,389 1,047 14,732 -------- --------- -------- -------- Expenses: Investment Advisory Fees ............................................. 2,750 16,656 1,541 8,959 Administrator Fees ................................................... 203 1,013 98 697 Transfer Agent Fees-- Trust Shares ................................... 19 19 17 17 Transfer Agent Fees-- Investor Shares ................................ 19 128 -- 47 Transfer Agent Fees-- Flex Shares .................................... 71 174 67 106 Transfer Agent Out of Pocket Expenses ................................ 18 86 9 60 Printing Fees ........................................................ 14 69 7 17 Custody Fees ......................................................... 7 36 4 26 Professional Fees .................................................... 12 59 6 42 Trustee Fees ......................................................... 3 14 1 10 Registration Fees .................................................... 8 68 2 15 Distribution Fees-- Investor Shares .................................. 25 1,539 -- 104 Distribution Fees-- Flex Shares ...................................... 626 1,138 254 658 Insurance and Other Fees ............................................. 15 71 -- -- -------- --------- -------- -------- Total Expenses ....................................................... 3,790 21,070 2,006 10,758 -------- --------- -------- -------- Less: Investment Advisory Fees Waived ................................ (113) (458) (5) -- Distribution Fees Waived-- Investor Shares .................. (16) (196) -- (71) Distribution Fees Waived-- Flex Shares ...................... (30) (36) (50) (143) -------- --------- -------- -------- Net Expenses ......................................................... 3,631 20,380 1,951 10,544 -------- --------- -------- -------- Net Investment Income (Loss) ......................................... 5,810 (6,991) (904) 4,188 -------- --------- -------- -------- Net Realized and Unrealized Gain (Loss) on Investments: Capital Gain Received from Investments ............................... -- -- -- -- Net Realized Gain (Loss) on Securities Sold .......................... 7,461 102,081 (31,392) (705) Net Realized Loss on Foreign Currency Transactions ................... -- -- -- -- Net Change in Unrealized Depreciation on Foreign Currency and Translation of Other Assets and Liabilities in Foreign Currency -- -- -- -- Net Change in Unrealized Appreciation (Depreciation) on Investments .. (3,904) (148,100) 5,519 (3,199) -------- --------- -------- -------- Total Net Realized and Unrealized Gain (Loss) on Investments ......... 3,557 (46,019) (25,873) (3,904) -------- --------- -------- -------- Net Increase (Decrease) in Net Assets from Operations ................ $ 9,367 $ (53,010) $(26,777) $ 284 ======== ========= ======== ========
INTERNATIONAL INTERNATIONAL LIFE VISION EQUITY EQUITY AGGRESSIVE GROWTH FUND INDEX FUND FUND ------------- ------------- ----------------- Income: Dividend Income ...................................................... $ 5,446 $ 4,869 $ 263 Interest Income ...................................................... 121 -- -- Less: Foreign Taxes Withheld ......................................... (473) (426) -- -------- -------- ------- Total Income ......................................................... 5,094 4,443 263 -------- -------- ------- Expenses: Investment Advisory Fees ............................................. 3,251 2,726 50 Administrator Fees ................................................... 182 212 14 Transfer Agent Fees-- Trust Shares ................................... 16 18 16 Transfer Agent Fees-- Investor Shares ................................ 22 19 -- Transfer Agent Fees-- Flex Shares .................................... 28 22 -- Transfer Agent Out of Pocket Expenses ................................ 13 23 1 Printing Fees ........................................................ 12 14 1 Custody Fees ......................................................... 289 428 -- Professional Fees .................................................... 8 9 1 Trustee Fees ......................................................... 3 3 -- Registration Fees .................................................... -- -- 1 Distribution Fees-- Investor Shares .................................. 23 11 -- Distribution Fees-- Flex Shares ...................................... 73 40 -- Insurance and Other Fees ............................................. 13 46 3 -------- -------- ------- Total Expenses ....................................................... 3,933 3,571 87 -------- -------- ------- Less: Investment Advisory Fees Waived ................................ (6) (261) (36) Distribution Fees Waived-- Investor Shares .................. (16) (11) -- Distribution Fees Waived-- Flex Shares ...................... (8) (2) -- -------- -------- ------- Net Expenses ......................................................... 3,903 3,297 51 -------- -------- ------- Net Investment Income (Loss) ......................................... 1,191 1,146 212 -------- -------- ------- Net Realized and Unrealized Gain (Loss) on Investments: Capital Gain Received from Investments ............................... -- -- 165 Net Realized Gain (Loss) on Securities Sold .......................... (11,441) (22,445) 1,870 Net Realized Loss on Foreign Currency Transactions ................... (517) (347) -- Net Change in Unrealized Depreciation on Foreign Currency and Translation of Other Assets and Liabilities in Foreign Currency (600) (19) -- Net Change in Unrealized Appreciation (Depreciation) on Investments .. (17,398) (40,574) (1,422) -------- -------- ------- Total Net Realized and Unrealized Gain (Loss) on Investments ......... (29,956) (63,385) 613 -------- -------- ------- Net Increase (Decrease) in Net Assets from Operations ................ $(28,765) $(62,239) $ 825 ======== ======== =======
Amounts designated as "--" are either $0 or have been rounded to $0. THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS. 66 & 67 STATEMENTS OF OPERATIONS (000) ================================================================================ STI CLASSIC EQUITY FUNDS FOR THE YEAR ENDED MAY 31, 2001
LIFE VISION LIFE VISION MID-CAP SMALL CAP GROWTH AND INCOME MODERATE EQUITY GROWTH STOCK FUND GROWTH FUND FUND FUND -------------- ------------ --------- ----------- Income: Dividend Income ..................................................... $1,009 $ 2,444 $ 1,027 $ 1,238 Interest Income ..................................................... -- -- 992 269 ------ -------- -------- ------- Total Income ........................................................ 1,009 2,444 2,019 1,507 ------ -------- -------- ------- Expenses: Investment Advisory Fees ............................................ 95 185 2,392 6,113 Administrator Fees .................................................. 27 52 146 372 Transfer Agent Fees-- Trust Shares .................................. 15 15 17 24 Transfer Agent Fees-- Investor Shares ............................... -- -- 25 41 Transfer Agent Fees-- Flex Shares ................................... -- -- 30 39 Transfer Agent Out of Pocket Expenses ............................... 2 4 13 32 Printing Fees ....................................................... -- 4 10 19 Custody Fees ........................................................ 2 2 6 13 Professional Fees ................................................... 2 3 8 22 Trustee Fees ........................................................ -- 1 2 5 Registration Fees ................................................... 2 3 6 38 Distribution Fees-- Investor Shares ................................. -- -- 57 163 Distribution Fees-- Flex Shares ..................................... -- -- 134 253 Insurance and Other Fees ............................................ 3 4 1 -- ------ -------- -------- ------- Total Expenses ...................................................... 148 273 2,847 7,134 ------ -------- -------- ------- Less: Investment Advisory Fees Waived ............................... (52) (85) (77) (50) Distribution Fees Waived-- Investor Shares ................. -- -- (21) (83) Distribution Fees Waived-- Flex Shares ..................... -- -- (22) (23) ------ -------- -------- ------- Net Expenses ........................................................ 96 188 2,727 6,978 ------ -------- -------- ------- Net Investment Income (Loss) ........................................ 913 2,256 (708) (5,471) ------ -------- -------- ------- Net Realized and Unrealized Gain (Loss) on Investments: Capital Gain Received from Investments .............................. 298 490 -- -- Net Realized Gain (Loss) on Securities Sold ......................... 412 3,951 6,260 27,514 Net Change in Unrealized Appreciation (Depreciation) on Investments.. 421 (3,417) (21,026) 19,085 ------ -------- -------- ------- Total Net Realized and Unrealized Gain (Loss) on Investments ........ 1,131 1,024 (14,766) 46,599 ------ -------- -------- ------- Net Increase (Decrease) in Net Assets from Operations ............... $2,044 $ 3,280 $(15,474) $41,128 ====== ======== ======== =======
SMALL CAP TAX SENSITIVE VALUE VALUE EQUITY GROWTH STOCK INCOME STOCK FUND FUND FUND ----------- ------------- ------------ Income: Dividend Income ............................................................. $ 6,344 $ 9,260 $ 19,499 Interest Income ............................................................. 1,485 1,120 3,801 ------- --------- -------- Total Income ................................................................ 7,829 10,380 23,300 ------- --------- -------- Expenses: Investment Advisory Fees .................................................... 3,026 10,469 7,155 Administrator Fees .......................................................... 184 637 626 Transfer Agent Fees-- Trust Shares .......................................... 18 17 20 Transfer Agent Fees-- Investor Shares ....................................... -- -- 73 Transfer Agent Fees-- Flex Shares ........................................... 35 264 104 Transfer Agent Out of Pocket Expenses ....................................... 16 55 55 Printing Fees ............................................................... 16 42 41 Custody Fees ................................................................ 7 23 22 Professional Fees ........................................................... 13 37 37 Trustee Fees ................................................................ 2 9 9 Registration Fees ........................................................... 19 23 28 Distribution Fees-- Investor Shares ......................................... -- -- 293 Distribution Fees-- Flex Shares ............................................. 86 2,828 672 Insurance and Other Fees .................................................... 11 77 67 ------- --------- -------- Total Expenses .............................................................. 3,433 14,481 9,202 ------- --------- -------- Less: Investment Advisory Fees Waived ....................................... (21) (93) -- Distribution Fees Waived -- Investor Shares ......................... -- -- (25) Distribution Fees Waived -- Flex Shares ............................. (30) (96) (27) ------- --------- -------- Net Expenses ................................................................ 3,382 14,292 9,150 ------- --------- -------- Net Investment Income (Loss) ................................................ 4,447 (3,912) 14,150 ------- --------- ------- Net Realized and Unrealized Gain (Loss) on Investments: Capital Gain Received from Investments ...................................... -- -- -- Net Realized Gain (Loss) on Securities Sold ................................. (981) (151,967) (34,203) Net Change in Unrealized Appreciation (Depreciation) on Investments ......... 75,340 (36,773) 127,456 ------- --------- -------- Total Net Realized and Unrealized Gain (Loss) on Investments ................ 74,359 (188,740) 93,253 ------- --------- -------- Net Increase (Decrease) in Net Assets from Operations ....................... $78,806 $(192,652) $107,403 ======= ========= ========
Amounts designated as "--" are either $0 or have been rounded to $0. THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS. 68 & 69 STATEMENTS OF CHANGES IN NET ASSETS (000) ================================================================================ STI CLASSIC EQUITY FUNDS FOR THE PERIODS ENDED MAY 31,
CAPITAL BALANCED FUND APPRECIATION FUND --------------------- ----------------------- 06/01/00- 06/01/99- 06/01/00- 06/01/99- 05/31/01 05/31/00 05/31/01 05/31/00 ---------- --------- ---------- --------- Operations: Net Investment Income (Loss) ................................ $ 5,810 $ 6,981 $ (6,991) $ (1,560) Capital Gain Received from Investments ...................... -- -- -- -- Net Realized Gain (Loss) on Securities Sold ................. 7,461 5,831 102,081 240,075 Net Realized Loss on Foreign Currency Transactions .......... -- -- -- -- Net Change in Unrealized Appreciation (Depreciation) on Foreign Currency and Translation of Other Assets and Liabilities in Foreign Currency .......................... -- -- -- -- Net Change in Unrealized Appreciation (Depreciation) on Investments ........................................... (3,904) 755 (148,100) (89,037) -------- --------- ---------- ---------- Increase (Decrease) in Net Assets from Operations ........... 9,367 13,567 (53,010) 149,478 -------- --------- ---------- ---------- Distributions to Shareholders: Net Investment Income: Trust Shares .............................................. (5,165) (5,433) -- -- Investor Shares ........................................... (180) (248) -- -- Flex Shares ............................................... (821) (950) -- -- Capital Gains: Trust Shares .............................................. (4,937) (4,291) (186,922) (88,647) Investor Shares ........................................... (191) (233) (39,562) (16,187) Flex Shares ............................................... (1,368) (1,444) (20,425) (8,873) -------- --------- ---------- ---------- Total Distributions ......................................... (12,662) (12,599) (246,909) (113,707) -------- --------- ---------- ---------- Capital Transactions (1): Trust Shares: Proceeds from Shares Issued ............................... 55,417 93,109 244,831 313,347 Shares Issued in Connection with Fund Reorganizations ..... -- -- 228,414 -- Reinvestment of Cash Distributions ........................ 9,950 9,575 173,461 83,171 Cost of Shares Repurchased ................................ (77,211) (131,695) (539,484) (1,096,316) -------- --------- ---------- ---------- Increase (Decrease) in Net Assets From Trust Share Transactions ........................................ (11,844) (29,011) 107,222 (699,798) -------- --------- ---------- ---------- Investor Shares: Proceeds from Shares Issued ............................... 459 1,969 6,569 12,858 Shares Issued in Connection with ESC Merger ............... -- -- -- -- Reinvestment of Cash Distributions ........................ 366 477 38,862 15,949 Cost of Shares Repurchased ................................ (2,529) (7,771) (45,950) (93,208) -------- --------- ---------- ---------- Increase (Decrease) in Net Assets From Investor Share Transactions ........................................... (1,704) (5,325) (519) (64,401) -------- --------- ---------- ---------- Flex Shares: Proceeds from Shares Issued ............................... 21,023 26,174 19,049 29,168 Shares Issued in Connection with Fund Reorganizations ..... -- -- 5,868 -- Shares Issued in Connection with ESC Merger ............... -- -- -- -- Reinvestment of Cash Distributions ........................ 2,109 2,328 20,065 8,732 Cost of Shares Repurchased ................................ (18,898) (37,791) (35,295) (73,027) -------- --------- ---------- ---------- Increase (Decrease) in Net Assets From Flex Share Transactions ........................................... 4,234 (9,289) 9,687 (35,127) -------- --------- ---------- ---------- Increase (Decrease) in Net Assets From Share Transactions ........................................... (9,314) (43,625) 116,390 (799,326) -------- --------- ---------- ---------- Total Increase (Decrease) in Net Assets ................. (12,609) (42,657) (183,529) (763,555) -------- --------- ---------- ---------- Net Assets: Beginning of Period ......................................... 297,583 340,240 1,676,507 2,440,062 -------- --------- ---------- ---------- End of Period ............................................... $284,974 $ 297,583 $1,492,978 $1,676,507 ======== ========= ========== ==========
E-COMMERCE INTERNATIONAL OPPORTUNITY GROWTH AND EQUITY FUND INCOME FUND FUND ---------------------- --------------------- ----------------------- 06/01/00- 09/30/99*- 06/01/00- 06/01/99- 06/01/00- 06/01/99- 05/31/01 05/31/00 05/31/01 05/31/00 05/31/01 05/31/00 ---------- ----------- ---------- ---------- ---------- --------- Operations: Net Investment Income (Loss) ........................... $ (904) $ (323) $ 4,188 $ 5,647 $ 1,191 $ 2,936 Capital Gain Received from Investments ................. -- -- -- -- -- -- Net Realized Gain (Loss) on Securities Sold ............ (31,392) (8,801) (705) 28,329 (11,441) 76,552 Net Realized Loss on Foreign Currency Transactions ..... -- -- -- -- (517) (5,581) Net Change in Unrealized Appreciation (Depreciation) on Foreign Currency and Translation of Other Assets and Liabilities in Foreign Currency ..................... -- -- -- -- (600) 565 Net Change in Unrealized Appreciation (Depreciation) on Investments ...................................... 5,519 (3,438) (3,199) 1,238 (17,398) (31,341) -------- -------- -------- -------- -------- -------- Increase (Decrease) in Net Assets from Operations ...... (26,777) (12,562) 284 35,214 (28,765) 43,131 -------- -------- -------- -------- -------- -------- Distributions to Shareholders: Net Investment Income: Trust Shares ......................................... -- -- (4,781) (4,628) (877) (2,937) Investor Shares ...................................... -- -- (150) (188) -- (22) Flex Shares .......................................... -- -- -- -- -- -- Capital Gains: Trust Shares ......................................... -- -- (24,395) (44,093) (23,931) (70,119) Investor Shares ...................................... -- -- (1,167) (2,546) (847) (1,670) Flex Shares .......................................... -- -- (1,712) (2,921) (902) (2,014) -------- -------- -------- -------- -------- -------- Total Distributions .................................... -- -- (32,205) (54,376) (26,557) (76,762) -------- -------- -------- -------- -------- -------- Capital Transactions (1): Trust Shares: Proceeds from Shares Issued .......................... 41,035 140,662 243,507 367,032 53,266 66,686 Shares Issued in Connection with Fund Reorganizations -- -- -- -- -- 21,915 Reinvestment of Cash Distributions ................... -- -- 20,958 34,372 21,730 66,001 Cost of Shares Repurchased ........................... (39,461) (26,252) (253,423) (134,326) (114,255) (396,524) -------- -------- -------- -------- -------- -------- Increase (Decrease) in Net Assets From Trust Share Transactions ................................... 1,574 114,410 11,042 267,078 (39,259) (241,922) -------- -------- -------- -------- -------- -------- Investor Shares: Proceeds from Shares Issued .......................... -- -- 5,435 17,046 35,555 1,176 Shares Issued in Connection with ESC Merger .......... -- -- -- 7,989 -- 1,242 Reinvestment of Cash Distributions ................... -- -- 1,186 2,496 807 1,683 Cost of Shares Repurchased ........................... -- -- (7,839) (20,339) (37,661) (7,206) -------- -------- -------- -------- -------- -------- Increase (Decrease) in Net Assets From Investor Share Transactions ...................................... -- -- (1,218) 7,192 (1,299) (3,105) -------- -------- -------- -------- -------- -------- Flex Shares: Proceeds from Shares Issued .......................... 14,430 25,730 32,257 37,577 6,441 2,028 Shares Issued in Connection with Fund Reorganizations -- -- -- -- -- -- Shares Issued in Connection with ESC Merger .......... -- -- -- 1,536 -- 666 Reinvestment of Cash Distributions ................... -- -- 1,665 2,843 886 1,975 Cost of Shares Repurchased ........................... (6,704) (952) (15,848) (13,227) (8,498) (10,061) -------- -------- -------- -------- -------- -------- Increase (Decrease) in Net Assets From Flex Share Transactions ...................................... 7,726 24,778 18,074 28,729 (1,171) (5,392) -------- -------- -------- -------- -------- -------- Increase (Decrease) in Net Assets From Share Transactions ...................................... 9,300 139,188 27,898 302,999 (41,729) (250,419) -------- -------- -------- -------- -------- -------- Total Increase (Decrease) in Net Assets ............ (17,477) 126,626 (4,023) 283,837 (97,051) (284,050) -------- -------- -------- -------- -------- -------- Net Assets: Beginning of Period .................................... 126,626 -- 990,237 706,400 320,453 604,503 -------- -------- -------- -------- -------- -------- End of Period .......................................... $109,149 $126,626 $986,214 $990,237 $223,402 $320,453 ======== ======== ======== ======== ======== ========
INTERNATIONAL LIFE VISION EQUITY AGGRESSIVE INDEX FUND GROWTH FUND --------------------- ---------------------- 06/01/00- 06/01/99- 06/01/00- 06/01/99- 05/31/01 05/31/00 05/31/01 05/31/00 --------- ---------- ----------- ---------- Operations: Net Investment Income (Loss) ................................. $ 1,146 $ 1,346 $ 212 $ 87 Capital Gain Received from Investments ....................... -- -- 165 780 Net Realized Gain (Loss) on Securities Sold .................. (22,445) 2,725 1,870 158 Net Realized Loss on Foreign Currency Transactions ........... (347) (534) -- -- Net Change in Unrealized Appreciation (Depreciation) on Foreign Currency and Translation of Other Assets and Liabilities in Foreign Currency ........................... (19) 116 -- -- Net Change in Unrealized Appreciation (Depreciation) on Investments ............................................ (40,574) 37 (1,422) 461 -------- -------- ------- ------- Increase (Decrease) in Net Assets from Operations ............ (62,239) 3,690 825 1,486 -------- -------- ------- ------- Distributions to Shareholders: Net Investment Income: Trust Shares ............................................... (1,603) (276) (220) (88) Investor Shares ............................................ -- -- -- -- Flex Shares ................................................ -- -- -- -- Capital Gains: Trust Shares ............................................... (2,188) (863) (2,504) (807) Investor Shares ............................................ (28) (41) -- -- Flex Shares ................................................ (45) (21) -- -- -------- -------- ------- ------- Total Distributions .......................................... (3,864) (1,201) (2,724) (895) -------- -------- ------- ------- Capital Transactions (1): Trust Shares: Proceeds from Shares Issued ................................ 92,148 297,168 14,367 11,078 Shares Issued in Connection with Fund Reorganizations ...... -- -- -- -- Reinvestment of Cash Distributions ......................... 2,830 1,011 2,711 894 Cost of Shares Repurchased ................................. (134,833) (33,456) (9,655) (12,850) -------- -------- ------- ------- Increase (Decrease) in Net Assets From Trust Share Transactions ......................................... (39,855) 264,723 7,423 (878) -------- -------- ------- ------- Investor Shares: Proceeds from Shares Issued ................................ 19,493 2,934 -- -- Shares Issued in Connection with ESC Merger ................ -- -- -- -- Reinvestment of Cash Distributions ......................... 26 40 -- -- Cost of Shares Repurchased ................................. (19,943) (4,152) -- -- -------- -------- ------- ------- Increase (Decrease) in Net Assets From Investor Share Transactions ............................................ (424) (1,178) -- -- -------- -------- ------- ------- Flex Shares: Proceeds from Shares Issued ................................ 6,535 5,107 -- -- Shares Issued in Connection with Fund Reorganizations ...... -- -- -- -- Shares Issued in Connection with ESC Merger ................ -- -- -- -- Reinvestment of Cash Distributions ......................... 43 21 -- -- Cost of Shares Repurchased ................................. (6,421) (883) -- -- -------- -------- ------- ------- Increase (Decrease) in Net Assets From Flex Share Transactions ............................................ 157 4,245 -- -- -------- -------- ------- ------- Increase (Decrease) in Net Assets From Share Transactions ............................................ (40,122) 267,790 7,423 (878) -------- -------- ------- ------- Total Increase (Decrease) in Net Assets .................. (106,225) 270,279 5,524 (287) -------- -------- ------- ------- Net Assets: Beginning of Period .......................................... 351,269 80,990 18,412 18,699 -------- -------- ------- ------- End of Period ................................................ $245,044 $351,269 $23,936 $18,412 ======== ======== ======= ======= *Commencement of operations. (1) See Note 7 in the notes to the financial statements for additional information. Amounts designated as "--" are either $0 or have been rounded to $0.
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS. 70 & 71 STATEMENTS OF CHANGES IN NET ASSETS (000) ================================================================================ STI CLASSIC EQUITY FUNDS FOR THE YEARS ENDED MAY 31,
LIFE VISION LIFE VISION MID-CAP EQUITY GROWTH AND INCOME FUND MODERATE GROWTH FUND FUND ---------------------- ----------------------- ---------------------- 06/01/00- 06/01/99- 06/01/00- 06/01/99- 06/01/00- 09/30/99- 05/31/01 05/31/00 05/31/01 05/31/00 05/31/01 05/31/00 ---------- --------- ---------- --------- ---------- ----------- Operations: Net Investment Income (Loss) ............................ $ 913 $ 414 $ 2,256 $ 1,837 $ (708) $ (239) Capital Gain Received from Investments .................. 298 832 490 2,705 -- -- Net Realized Gain (Loss) on Securities Sold ............. 412 (524) 3,951 (979) 6,260 39,061 Net Change in Unrealized Appreciation (Depreciation) on Investments ........................................ 421 408 (3,417) 264 (21,026) 4,067 -------- --------- ---------- ---------- -------- -------- Increase (Decrease) in Net Assets from Operations ....... 2,044 1,130 3,280 3,827 (15,474) 42,889 -------- --------- ---------- ---------- -------- -------- Distributions to Shareholders: Net Investment Income: Trust Shares .......................................... (921) (359) (2,323) (1,683) -- -- Investor Shares ....................................... -- -- -- -- -- -- Flex Shares ........................................... -- -- -- -- -- -- Capital Gains: Trust Shares .......................................... (1,868) (571) (6,675) (3,458) (36,018) (15,785) Investor Shares ....................................... -- -- -- -- (2,597) (1,189) Flex Shares ........................................... -- -- -- -- (2,609) (1,047) -------- --------- ---------- ---------- -------- -------- Total Distributions ..................................... (2,789) (930) (8,998) (5,141) (41,224) (18,021) -------- --------- ---------- ---------- -------- -------- Capital Transactions (1): Trust Shares: Proceeds from Shares Issued ........................... 24,159 18,854 61,628 33,036 117,778 155,090 Shares Issued in Connection with Fund Reorganizations . -- -- -- -- -- -- Reinvestment of Cash Distributions .................... 2,775 928 8,988 5,141 32,369 14,649 Cost of Shares Repurchased ............................ (19,112) (11,459) (61,091) (55,429) (151,284) (239,058) -------- --------- ---------- ---------- -------- -------- Increase (Decrease) in Net Assets From Trust Share Transactions .......................................... 7,822 8,323 9,525 (17,252) (1,137) (69,319) -------- --------- ---------- ---------- -------- -------- Investor Shares: Proceeds from Shares Issued ........................... -- -- -- -- 6,611 1,381 Shares Issued in Connection with Fund Reorganizations . -- -- -- -- -- -- Shares Issued in Connection with ESC Merger ........... -- -- -- -- -- -- Reinvestment of Cash Distributions .................... -- -- -- -- 2,556 1,183 Cost of Shares Repurchased ............................ -- -- -- -- (7,751) (8,975) -------- --------- ---------- ---------- -------- -------- Increase (Decrease) in Net Assets From Investor Share Transactions .......................................... -- -- -- -- 1,416 (6,411) -------- --------- ---------- ---------- -------- -------- Flex Shares: Proceeds from Shares Issued ........................... -- -- -- -- 5,097 3,480 Shares Issued in Connection with Fund Reorganizations . -- -- -- -- -- -- Shares Issued in Connection with ESC Merger ........... -- -- -- -- -- -- Reinvestment of Cash Distributions .................... -- -- -- -- 2,582 1,037 Cost of Shares Repurchased ............................ -- -- -- -- (5,569) (7,098) -------- --------- ---------- ---------- -------- -------- Increase (Decrease) in Net Assets From Flex Share Transactions ......................................... -- -- -- -- 2,110 (2,581) -------- --------- ---------- ---------- -------- -------- Increase (Decrease) in Net Assets From Share Transactions ........................................ 7,822 8,323 9,525 (17,252) 2,389 (78,311) -------- --------- ---------- ---------- -------- -------- Total Increase (Decrease) in Net Assets ............ 7,077 8,523 3,807 (18,566) (54,309) (53,443) -------- --------- ---------- ---------- -------- -------- Net Assets: Beginning of Period ..................................... 30,473 21,950 69,622 88,188 235,646 289,089 -------- --------- ---------- ---------- -------- -------- End of Period ........................................... $ 37,550 $ 30,473 $ 73,429 $ 69,622 $181,337 $235,646 ======== ========= ========== ========== ======== ========
SMALL CAP GROWTH SMALL CAP VALUE STOCK FUND EQUITY FUND --------------------- ----------------------- 06/01/00- 06/01/99- 06/01/00- 06/01/99- 05/31/01 05/31/00 05/31/01 05/31/00 ---------- ---------- ---------- --------- Operations: Net Investment Income (Loss) ................................ $ (5,471) $ (2,813) $ 4,447 $ 3,756 Capital Gain Received from Investments ...................... -- -- -- -- Net Realized Gain (Loss) on Securities Sold ................. 27,514 22,517 (981) (3,553) Net Change in Unrealized Appreciation (Depreciation) on Investments ............................................ 19,085 40,570 75,340 (20,563) -------- -------- -------- -------- Increase (Decrease) in Net Assets from Operations ........... 41,128 60,274 78,806 (20,360) -------- -------- -------- -------- Distributions to Shareholders: Net Investment Income: Trust Shares .............................................. -- -- (3,821) (3,505) Investor Shares ........................................... -- -- -- -- Flex Shares ............................................... -- -- (48) (6) Capital Gains: Trust Shares .............................................. (36,059) (2,438) -- -- Investor Shares ........................................... (2,634) -- -- -- Flex Shares ............................................... (1,955) (83) -- -- -------- -------- -------- -------- Total Distributions ......................................... (40,648) (2,521) (3,869) (3,511) -------- -------- -------- -------- Capital Transactions (1): Trust Shares: Proceeds from Shares Issued ............................... 147,538 191,895 198,095 103,359 Shares Issued in Connection with Fund Reorganizations ..... -- 93,889 -- -- Reinvestment of Cash Distributions ........................ 31,468 2,092 3,024 2,725 Cost of Shares Repurchased ................................ (102,290) (68,278) (83,742) (173,187) -------- -------- -------- -------- Increase (Decrease) in Net Assets From Trust Share Transactions .............................................. 76,716 219,598 117,377 (67,103) -------- -------- -------- -------- Investor Shares: Proceeds from Shares Issued ............................... 6,093 2,463 -- -- Shares Issued in Connection with Fund Reorganizations ..... -- 12,481 -- -- Shares Issued in Connection with ESC Merger ............... -- 34,455 -- -- Reinvestment of Cash Distributions ........................ 2,440 -- -- -- Cost of Shares Repurchased ................................ (19,670) (7,316) -- -- -------- -------- -------- -------- Increase (Decrease) in Net Assets From Investor Share Transactions .............................................. (11,137) 42,083 -- -- -------- -------- -------- -------- Flex Shares: Proceeds from Shares Issued ............................... 8,615 4,518 3,356 1,802 Shares Issued in Connection with Fund Reorganizations ..... -- 2,772 -- -- Shares Issued in Connection with ESC Merger ............... -- 14,435 -- -- Reinvestment of Cash Distributions ........................ 1,935 83 47 5 Cost of Shares Repurchased ................................ (6,449) (5,119) (3,320) (11,612) -------- -------- -------- -------- Increase (Decrease) in Net Assets From Flex Share Transactions ............................................. 4,101 16,689 83 (9,805) -------- -------- -------- -------- Increase (Decrease) in Net Assets From Share Transactions ............................................ 69,680 278,370 117,460 (76,908) -------- -------- -------- -------- Total Increase (Decrease) in Net Assets ................ 70,160 336,123 192,397 (100,779) -------- -------- -------- -------- Net Assets: Beginning of Period ......................................... 494,571 158,448 220,670 321,449 -------- -------- -------- -------- End of Period ............................................... $564,731 $494,571 $413,067 $220,670 ======== ======== ======== ========
TAX SENSITIVE GROWTH VALUE INCOME STOCK FUND STOCK FUND --------------------- ---------------------- 06/01/00- 06/01/99- 06/01/00- 06/01/99- 05/31/01 05/31/00 05/31/01 05/31/00 --------- ---------- ----------- ---------- Operations: Net Investment Income (Loss) .................................. $ (3,912) $ (1,126) $ 14,150 $ 30,996 Capital Gain Received from Investments ........................ -- -- -- -- Net Realized Gain (Loss) on Securities Sold ................... (151,967) (23,743) (34,203) (147,760) Net Change in Unrealized Appreciation (Depreciation) on Investments .............................................. (36,773) 58,045 127,456 (137,601) ---------- ---------- ---------- ---------- Increase (Decrease) in Net Assets from Operations ............. (192,652) 33,176 107,403 (254,365) ---------- ---------- ---------- ---------- Distributions to Shareholders: Net Investment Income: Trust Shares ................................................ -- -- (14,738) (27,678) Investor Shares ............................................. -- -- (1,369) (2,514) Flex Shares ................................................. -- -- (564) (1,129) Capital Gains: Trust Shares ................................................ -- -- -- (131,535) Investor Shares ............................................. -- -- -- (14,565) Flex Shares ................................................. -- -- -- (13,032) ---------- ---------- ---------- ---------- Total Distributions ........................................... -- -- (16,671) (190,453) ---------- ---------- ---------- ---------- Capital Transactions (1): Trust Shares: Proceeds from Shares Issued ................................. 111,167 556,671 164,924 383,909 Shares Issued in Connection with Fund Reorganizations ....... -- -- -- -- Reinvestment of Cash Distributions .......................... -- -- 13,019 146,588 Cost of Shares Repurchased .................................. (231,337) (95,363) (469,678) (831,377) ---------- ---------- ---------- ---------- Increase (Decrease) in Net Assets From Trust Share Transactions ................................................ (120,170) 461,308 (291,735) (300,880) --------- ---------- ---------- ---------- Investor Shares: Proceeds from Shares Issued ................................. -- -- 2,039 6,784 Shares Issued in Connection with Fund Reorganizations ....... -- -- -- -- Shares Issued in Connection with ESC Merger ................. -- -- -- -- Reinvestment of Cash Distributions .......................... -- -- 1,326 16,876 Cost of Shares Repurchased .................................. -- -- (31,203) (72,831) ---------- ---------- ---------- ---------- Increase (Decrease) in Net Assets From Investor Share Transactions ................................................ -- -- (27,838) (49,171) ---------- ---------- ---------- ---------- Flex Shares: Proceeds from Shares Issued ................................. 77,445 242,949 4,891 18,991 Shares Issued in Connection with Fund Reorganizations ....... -- -- -- -- Shares Issued in Connection with ESC Merger ................. -- -- -- -- Reinvestment of Cash Distributions .......................... -- -- 552 13,741 Cost of Shares Repurchased .................................. (71,590) (36,077) (30,819) (78,588) ---------- ---------- ---------- ---------- Increase (Decrease) in Net Assets From Flex Share Transactions ............................................... 5,855 206,872 (25,376) (45,856) --------- ---------- ---------- ---------- Increase (Decrease) in Net Assets From Share Transactions .............................................. (114,315) 668,180 (344,949) (395,907) ---------- ---------- ---------- ---------- Total Increase (Decrease) in Net Assets .................. (306,967) 701,356 (254,217) (840,725) --------- ---------- ---------- ---------- Net Assets: Beginning of Period ........................................... 1,000,774 299,418 1,110,538 1,951,263 ---------- ---------- ---------- ---------- End of Period ................................................. $ 693,807 $1,000,774 $ 856,321 $1,110,538 ========== ========== ========== ========== (1) See Note 7 in the financial statements for additional information Amounts designated as "--" are either $0 or have been rounded to $0.
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS. 72 & 73 FINANCIAL HIGHLIGHTS ================================================================================ STI CLASSIC EQUITY FUNDS FOR THE PERIODS ENDED MAY 31, FOR A SHARE OUTSTANDING THROUGHOUT THE PERIODS
NET ASSET NET REALIZED AND DISTRIBUTIONS VALUE NET UNREALIZED GAINS FROM NET DISTRIBUTIONS NET ASSET BEGINNING INVESTMENT (LOSSES) INVESTMENT FROM REALIZED VALUE END TOTAL OF PERIOD INCOME (LOSS) ON INVESTMENTS INCOME CAPITAL GAINS OF PERIOD RETURN+ ------------ --------------- ------------------ --------------- ------------- ----------- -------- BALANCED FUND Trust Shares 2001 $13.37 $ 0.30 $0.12 $(0.31) $(0.30) $13.18 3.24% 2000 13.26 0.32 0.33 (0.30) (0.24) 13.37 5.02 1999 13.09 0.28 1.09 (0.28) (0.92) 13.26 10.98 1998 11.94 0.31 2.19 (0.32) (1.03) 13.09 22.15 1997 11.55 0.33 1.47 (0.32) (1.09) 11.94 16.66 Investor Shares 2001 $13.43 $ 0.27 $0.11 $(0.27) $(0.30) $13.24 2.91% 2000 13.32 0.29 0.31 (0.25) (0.24) 13.43 4.66 1999 13.14 0.24 1.10 (0.24) (0.92) 13.32 10.70 1998 11.99 0.28 2.19 (0.29) (1.03) 13.14 21.72 1997 11.60 0.29 1.48 (0.29) (1.09) 11.99 16.27 Flex Shares 2001 $13.27 $ 0.16 $0.11 $(0.17) $(0.30) $13.07 2.11% 2000 13.17 0.17 0.33 (0.16) (0.24) 13.27 3.88 1999 13.02 0.16 1.07 (0.16) (0.92) 13.17 9.84 1998 11.90 0.20 2.16 (0.21) (1.03) 13.02 20.85 1997 11.53 0.22 1.45 (0.21) (1.09) 11.90 15.40 CAPITAL APPRECIATION FUND Trust Shares 2001 $17.12 $(0.05) $(0.38) $ -- $(2.80) $13.89 (3.74)% 2000 16.62 0.02 1.40 -- (0.92) 17.12 8.98 1999 16.48 0.05 2.70 (0.06) (2.55) 16.62 17.83 1998 15.09 0.09 3.96 (0.09) (2.57) 16.48 29.51 1997 14.90 0.12 3.13 (0.12) (2.94) 15.09 24.66 Investor Shares 2001 $16.91 $(0.14) $(0.38) $ -- $(2.80) $13.59 (4.38)% 2000 16.53 (0.11) 1.41 -- (0.92) 16.91 8.29 1999 16.43 (0.05) 2.70 -- (2.55) 16.53 17.20 1998 15.06 (0.01) 3.95 -- (2.57) 16.43 28.71 1997 14.89 0.03 3.10 (0.02) (2.94) 15.06 23.74 Flex Shares 2001 $16.45 $(0.16) $(0.40) $ -- $(2.80) $13.09 (4.79)% 2000 16.18 (0.24) 1.43 -- (0.92) 16.45 7.77 1999 16.22 (0.09) 2.60 -- (2.55) 16.18 16.50 1998 14.96 (0.04) 3.87 -- (2.57) 16.22 28.12 1997 14.84 (0.01) 3.07 -- (2.94) 14.96 23.24 E-COMMERCE OPPORTUNITY FUND Trust Shares 2001 $15.87 $(0.08) $(2.45) $ -- $ -- $13.34 (15.94)% 2000(1) 10.00 (0.04) 5.91 -- -- 15.87 58.70 Flex Shares 2001 $15.81 $(0.22) $(2.44) $ -- $ -- $13.15 (16.82)% 2000(2) 18.20 (0.07) (2.32) -- -- 15.81 (13.13)
RATIO OF RATIO OF NET INVESTMENT RATIO OF EXPENSES TO INCOME (LOSS) TO NET ASSETS RATIO OF NET INVESTMENT AVERAGE NET ASSETS AVERAGE NET ASSETS PORTFOLIO END OF EXPENSES TO INCOME (LOSS) TO (EXCLUDING WAIVERS (EXCLUDING WAIVERS TURNOVER PERIOD (000) AVERAGE NET ASSETS AVERAGE NET ASSETS AND REIMBURSEMENTS) AND REIMBURSEMENTS) RATE ------------- ------------------ ------------------ ------------------- ------------------- --------- BALANCED FUND Trust Shares 2001 $ 209,316 1.01% 2.24% 1.05% 2.20% 99% 2000 223,634 0.97 2.39 1.07 2.29 182 1999 251,752 0.97 2.19 1.06 2.10 179 1998 188,465 0.96 2.51 1.08 2.39 154 1997 151,358 0.95 2.89 1.08 2.76 197 Investor Shares 2001 $ 7,834 1.32% 1.93% 1.54% 1.71% 99% 2000 9,627 1.27 2.07 1.51 1.83 182 1999 14,962 1.27 1.89 1.43 1.73 179 1998 8,313 1.26 2.21 1.59 1.88 154 1997 6,012 1.25 2.58 1.64 2.19 197 Flex Shares 2001 $ 67,824 2.07% 1.18% 2.15% 1.10% 99% 2000 64,322 2.03 1.33 2.18 1.18 182 1999 73,526 2.03 1.13 2.15 1.01 179 1998 27,625 2.02 1.41 2.23 1.20 154 1997 6,067 2.01 1.84 2.45 1.40 197 CAPITAL APPRECIATION FUND Trust Shares 2001 $ 1,177,933 1.21% (0.29)% 1.24% (0.32)% 75% 2000 1,296,927 1.17 0.10 1.26 0.01 129 1999 1,966,842 1.17 0.29 1.26 0.20 147 1998 1,532,587 1.16 0.61 1.27 0.50 194 1997 1,085,128 1.15 0.83 1.25 0.73 141 Investor Shares 2001 $ 202,548 1.86% (0.94)% 1.98% (1.06)% 75% 2000 251,421 1.82 (0.55) 1.98 (0.71) 129 1999 311,120 1.82 (0.30) 1.96 (0.44) 147 1998 271,044 1.81 (0.03) 2.01 (0.23) 194 1997 218,660 1.80 0.19 2.02 (0.03) 141 Flex Shares 2001 $ 112,497 2.33% (1.41)% 2.39% (1.47)% 75% 2000 128,159 2.29 (1.03) 2.39 (1.13) 129 1999 162,100 2.29 (0.86) 2.38 (0.95) 147 1998 106,670 2.26 (0.46) 2.37 (0.57) 194 1997 36,753 2.27 (0.29) 2.43 (0.45) 141 E-COMMERCE OPPORTUNITY FUND Trust Shares 2001 $ 87,045 1.20% (0.45)% 1.21% (0.46)% 750% 2000(1) 106,425 1.20 (0.54) 1.34 (0.68) 250 Flex Shares 2001 $ 22,104 2.25% (1.50)% 2.45% (1.70)% 750% 2000(2) 20,201 2.25 (1.65) 2.40 (1.80) 250 + Returns are for the period indicated and have not been annualized. Total return figures do not include applicable sales loads. (1) Commenced operations on September 30, 1999. All ratios for the period have been annualized. (2) Commenced operations on January 24, 2000. All ratios for the period have been annualized. Amounts designated as "--" are either $0 or have been rounded to $0.
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS. 74 & 75 FINANCIAL HIGHLIGHTS ================================================================================ STI CLASSIC EQUITY FUNDS FOR THE PERIODS ENDED MAY 31, (UNLESS OTHERWISE INDICATED) FOR A SHARE OUTSTANDING THROUGHOUT THE PERIODS
NET ASSET NET REALIZED AND DISTRIBUTIONS VALUE NET UNREALIZED GAINS FROM NET DISTRIBUTIONS NET ASSET BEGINNING INVESTMENT (LOSSES) INVESTMENT FROM REALIZED VALUE END TOTAL OF PERIOD INCOME (LOSS) ON INVESTMENTS INCOME CAPITAL GAINS OF PERIOD RETURN+ ------------ --------------- ------------------ --------------- ------------- ----------- -------- GROWTH AND INCOME FUND (A) Trust Shares 2001 $15.53 $ 0.07 $(0.04) $(0.08) $(0.43) $15.05 0.11% 2000 16.09 0.11 0.55 (0.10) (1.12) 15.53 4.11 1999(1) 15.10 0.04 1.97 (0.02) (1.00) 16.09 14.24 For the years ended November 30: 1998 16.55 0.09 1.64 (0.09) (3.09) 15.10 13.64 1997 13.39 0.14 3.24 (0.15) (0.07) 16.55 25.41 1996 11.60 0.17 2.38 (0.17) (0.59) 13.39 22.68 Investor Shares 2001 $15.65 $ 0.04 $(0.04) $(0.05) $(0.43) $15.17 (0.07)% 2000 16.21 0.09 0.55 (0.08) (1.12) 15.65 3.92 1999(1) 15.21 0.04 1.99 (0.03) (1.00) 16.21 14.31 For the years ended November 30: 1998 16.64 0.10 1.66 (0.10) (3.09) 15.21 13.69 1997 13.47 0.13 3.25 (0.14) (0.07) 16.64 25.42 1996 11.66 0.17 2.39 (0.16) (0.59) 13.47 22.63 Flex Shares 2001 $15.49 $(0.05) $(0.05) $ -- $(0.43) $14.96 (0.77)% 2000 16.10 -- 0.51 -- (1.12) 15.49 3.11 1999(1) 15.14 (0.01) 1.97 -- (1.00) 16.10 13.85 For the years ended November 30: 1998 16.59 (0.01) 1.64 -- (3.08) 15.14 12.78 1997 13.44 0.04 3.23 (0.05) (0.07) 16.59 24.63 1996 11.64 0.09 2.38 (0.08) (0.59) 13.44 21.81 INTERNATIONAL EQUITY FUND Trust Shares 2001 $12.56 $ -- $(1.22) $(0.04) $(1.11) $10.19 (10.79)% 2000 12.97 (0.10) 1.42 (0.07) (1.66) 12.56 10.58 1999 15.00 -- (1.14) (0.05) (0.84) 12.97 (7.43) 1998 13.63 0.04 2.69 (0.04) (1.32) 15.00 21.87 1997 11.40 0.03 2.57 (0.02) (0.35) 13.63 23.29 Investor Shares 2001 $12.47 $(0.02) $(1.23) $ -- $(1.11) $10.11 (11.13)% 2000 12.89 (0.11) 1.37 (0.02) (1.66) 12.47 10.15 1999 14.92 (0.09) (1.10) -- (0.84) 12.89 (7.82) 1998 13.58 0.02 2.64 -- (1.32) 14.92 21.39 1997 11.38 (0.01) 2.56 -- (0.35) 13.58 22.85 Flex Shares 2001 $12.06 $(0.16) $(1.11) $ -- $(1.11) $ 9.68 (11.71)% 2000 12.58 (0.32) 1.46 -- (1.66) 12.06 9.38 1999 14.68 (0.29) (0.97) -- (0.84) 12.58 (8.48) 1998 13.47 0.07 2.46 -- (1.32) 14.68 20.54 1997 11.37 (0.04) 2.49 -- (0.35) 13.47 21.98 INTERNATIONAL EQUITY INDEX FUND Trust Shares 2001 $13.97 $0.06 $(2.69) $(0.07) $(0.09) $11.18 (18.90)% 2000 11.82 0.16 2.13 (0.03) (0.11) 13.97 19.36 1999 13.31 0.09 0.85 (0.24) (2.19) 11.82 7.87 1998 11.34 0.11 2.65 (0.11) (0.68) 13.31 25.82 1997 10.96 0.10 0.69 (0.11) (0.30) 11.34 7.48 Investor Shares 2001 $13.80 $(0.01) $(2.65) $ -- $(0.09) $11.05 (19.31)% 2000 11.70 (0.11) 2.32 -- (0.11) 13.80 18.86 1999 13.20 (0.11) 0.98 (0.18) (2.19) 11.70 7.33 1998 11.26 0.16 2.53 (0.07) (0.68) 13.20 25.25 1997 10.88 0.03 0.72 (0.07) (0.30) 11.26 7.12 Flex Shares 2001 $13.74 $(0.06) $(2.66) $ -- $(0.09) $10.93 (19.84)% 2000 11.73 0.08 2.04 -- (0.11) 13.74 18.04 1999 13.17 (0.15) 0.94 (0.04) (2.19) 11.73 6.68 1998 11.24 0.17 2.44 -- (0.68) 13.17 24.50 1997 10.87 (0.05) 0.72 -- (0.30) 11.24 6.41
RATIO OF RATIO OF NET INVESTMENT RATIO OF EXPENSES TO INCOME (LOSS) TO NET ASSETS RATIO OF NET INVESTMENT AVERAGE NET ASSETS AVERAGE NET ASSETS PORTFOLIO END OF EXPENSES TO INCOME (LOSS) TO (EXCLUDING WAIVERS (EXCLUDING WAIVERS TURNOVER PERIOD (000) AVERAGE NET ASSETS AVERAGE NET ASSETS AND REIMBURSEMENTS) AND REIMBURSEMENTS) RATE ------------- ------------------ ------------------- ------------------- ------------------ ---------- GROWTH AND INCOME FUND(A) Trust Shares 2001 $ 867,664 0.99% 0.49% 0.99% 0.49% 73% 2000 885,109 1.01 0.76 1.01 0.76 53 1999(1) 634,279 1.14 0.49 1.43 0.20 31 For the years ended November 30: 1998 577,042 1.03 0.63 1.21 0.45 71 1997 590,824 1.02 0.92 1.17 0.77 100 1996 553,648 1.02 1.38 1.17 1.23 82 Investor Shares 2001 $ 40,174 1.18% 0.30% 1.35% 0.13% 73% 2000 42,666 1.18 0.58 1.31 0.45 53 1999(1) 36,958 1.08 0.54 1.17 0.45 31 For the years ended November 30: 1998 34,434 1.03 0.63 1.18 0.48 71 1997 28,112 1.03 0.89 1.18 0.74 100 1996 17,997 1.03 1.35 1.18 1.20 82 Flex Shares 2001 $ 78,376 1.93% (0.45)% 2.14% (0.66)% 73% 2000 62,462 1.93 (0.14) 2.18 (0.39) 53 1999(1) 35,163 1.83 (0.21) 1.97 (0.35) 31 For the years ended November 30: 1998 25,656 1.78 (0.13) 2.03 (0.38) 71 1997 13,269 1.73 0.15 2.09 (0.20) 100 1996 5,131 1.68 0.71 2.03 0.36 82 INTERNATIONAL EQUITY FUND Trust Shares 2001 $ 208,120 1.45% 0.50% 1.45% 0.50% 68% 2000 299,100 1.48 0.59 1.48 0.59 179 1999 573,255 1.47 0.68 1.52 0.63 161 1998 628,870 1.47 0.61 1.48 0.60 108 1997 489,325 1.46 0.51 1.51 0.46 139 Investor Shares 2001 $ 7,517 1.79% 0.18% 1.97% --% 68% 2000 10,462 1.83 0.33 1.95 0.21 179 1999 14,145 1.83 0.30 1.93 0.20 161 1998 17,383 1.82 0.24 1.91 0.15 108 1997 10,674 1.81 0.18 2.05 (0.06) 139 Flex Shares 2001 $ 7,765 2.48% (0.51)% 2.57% (0.60)% 68% 2000 10,891 2.53 (0.38) 2.74 (0.59) 179 1999 17,103 2.53 (0.40) 2.82 (0.69) 161 1998 21,164 2.52 (0.46) 2.58 (0.52) 108 1997 8,375 2.51 (0.27) 3.03 (0.79) 139 INTERNATIONAL EQUITY INDEX FUND Trust Shares 2001 $ 236,862 1.06% 0.40% 1.09% 0.37% 13% 2000 340,853 1.07 0.83 1.18 0.72 9 1999 74,616 1.07 0.69 1.17 0.59 32 1998 56,200 1.06 0.88 1.18 0.76 1 1997 53,516 1.05 0.71 1.15 0.61 2 Investor Shares 2001 $ 3,451 1.46% 0.05% 1.83% (0.32)% 13% 2000 4,563 1.47 0.07 1.79 (0.25) 9 1999 4,909 1.47 0.25 1.71 0.01 32 1998 7,141 1.46 0.50 1.84 0.12 1 1997 5,592 1.45 0.28 1.88 (0.15) 2 Flex Shares 2001 $ 4,731 2.10% (0.61)% 2.15% (0.66)% 13% 2000 5,853 2.12 (0.36) 2.61 (0.85) 9 1999 1,465 2.12 (0.30) 2.92 (1.10) 32 1998 1,469 2.11 (0.03) 3.52 (1.44) 1 1997 900 2.10 (0.39) 3.69 (1.98) 2 + Returns are for the period indicated and have not been annualized. Total return figures do not include applicable sales loads. (1) For the six month period ended May 31, 1999. All ratios for the period have been annualized. (A) On May 24, 1999, the CrestFund Value Fund exchanged all of its assets and certain liabilities for shares of the Growth and Income Fund. The CrestFund Value 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. Amounts designated as "--" are either $0 or have been rounded to $0.
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS. 76 & 77 FINANCIAL HIGHLIGHTS ================================================================================ STI CLASSIC EQUITY FUNDS FOR THE PERIODS ENDED MAY 31, (UNLESS OTHERWISE INDICATED) FOR A SHARE OUTSTANDING THROUGHOUT THE PERIODS
NET ASSET NET REALIZED AND DISTRIBUTIONS VALUE NET UNREALIZED GAINS FROM NET DISTRIBUTIONS NET ASSET BEGINNING INVESTMENT (LOSSES) INVESTMENT FROM REALIZED VALUE END TOTAL OF PERIOD INCOME (LOSS) ON INVESTMENTS INCOME CAPITAL GAINS OF PERIOD RETURN+ ------------ --------------- ------------------ --------------- ------------- ----------- -------- LIFE VISION AGGRESSIVE GROWTH FUND (A) Trust Shares 2001 $11.61 $ 0.11 $ 0.23 $(0.12) $(1.52) $10.31 3.07% 2000 11.31 0.05 0.74 (0.05) (0.44) 11.61 7.25 1999(1) 11.32 0.02 1.13 (0.01) (1.15) 11.31 10.99 For the years ended November 30: 1998 10.65 0.03 0.67 (0.03) -- 11.32 6.53 1997(2) 10.00 0.03 0.65 (0.03) -- 10.65 6.82 LIFE VISION GROWTH AND INCOME FUND (A) Trust Shares 2001 $10.50 $ 0.24 $ 0.40 $(0.25) $(0.47) $10.42 6.31% 2000 10.33 0.07 0.52 (0.17) (0.25) 10.50 5.81 1999(1) 11.06 0.08 0.69 (0.06) (1.44) 10.33 7.75 For the years ended November 30: 1998 10.51 0.18 0.56 (0.18) (0.01) 11.06 7.12 1997(2) 10.00 0.09 0.51 (0.09) -- 10.51 5.97 LIFE VISION MODERATE GROWTH FUND (A) Trust Shares 2001 $10.61 $ 0.32 $0.20 $(0.34) $(1.06) $ 9.73 5.28% 2000 10.80 0.33 0.13 (0.21) (0.44) 10.61 4.46 1999(1) 11.01 0.11 0.56 (0.09) (0.79) 10.80 6.35 For the years ended November 30: 1998 10.46 0.24 0.58 (0.24) (0.03) 11.01 7.90 1997(2) 10.00 0.12 0.45 (0.11) -- 10.46 5.70 MID-CAP EQUITY FUND Trust Shares 2001 $14.10 $(0.03) $(0.61) $ -- $(2.51) $10.95 (6.92)% 2000 12.68 (0.04) 2.32 -- (0.86) 14.10 19.10 1999 13.79 0.01 0.07 -- (1.19) 12.68 1.61 1998 13.21 -- 2.54 -- (1.96) 13.79 21.14 1997 12.76 0.03 1.69 (0.05) (1.22) 13.21 14.23 Investor Shares 2001 $13.82 $(0.05) $(0.62) $ -- $(2.51) $10.64 (7.34)% 2000 12.50 (0.19) 2.37 -- (0.86) 13.82 18.55 1999 13.67 (0.06) 0.08 -- (1.19) 12.50 1.17 1998 13.17 (0.03) 2.49 -- (1.96) 13.67 20.56 1997 12.74 (0.03) 1.69 (0.01) (1.22) 13.17 13.76 Flex Shares 2001 $13.35 $(0.07) $(0.63) $ -- $(2.51) $10.14 (7.88)% 2000 12.17 (0.22) 2.26 -- (0.86) 13.35 17.87 1999 13.42 (0.14) 0.08 -- (1.19) 12.17 0.56 1998 13.04 (0.04) 2.38 -- (1.96) 13.42 19.80 1997 12.69 (0.07) 1.64 -- (1.22) 13.04 13.06 SMALL CAP GROWTH STOCK FUND Trust Shares 2001 $18.30 $(0.18) $1.71 $ -- $(1.46) $18.37 8.33% 2000 14.55 (0.08) 4.02 -- (0.19) 18.30 27.24 1999(3) 10.00 (0.05) 4.62 -- (0.02) 14.55 45.70 Investor Shares 2001 $18.27 $(0.59) $2.04 $ -- $(1.46) $18.26 7.89% 2000(4) 16.46 (0.07) 1.88 -- -- 18.27 11.00 Flex Shares 2001 $18.00 $(0.25) $1.56 $ -- $(1.46) $17.85 7.19% 2000 14.46 (0.04) 3.77 -- (0.19) 18.00 25.95 1999(3) 10.00 (0.19) 4.67 -- (0.02) 14.46 44.78 SMALL CAP VALUE EQUITY FUND Trust Shares 2001 $ 9.13 $ 0.17 $ 3.07 $(0.16) $ -- $12.21 35.90% 2000 9.70 0.13 (0.59) (0.11) -- 9.13 (4.72) 1999 12.88 0.13 (2.57) (0.13) (0.61) 9.70 (18.72) 1998 11.07 0.14 2.41 (0.12) (0.62) 12.88 23.59 1997(5) 10.00 0.05 1.04 (0.02) -- 11.07 10.97 Flex Shares 2001 $ 9.10 $ 0.07 $ 3.04 $(0.06) $ -- $12.15 34.30% 2000 9.65 -- (0.54) (0.01) -- 9.10 (5.65) 1999 12.80 0.01 (2.53) (0.02) (0.61) 9.65 (19.52) 1998(6) 11.28 0.03 2.17 (0.06) (0.62) 12.80 22.29
RATIO OF RATIO OF NET INVESTMENT RATIO OF EXPENSES TO INCOME (LOSS) TO NET ASSETS RATIO OF NET INVESTMENT AVERAGE NET ASSETS AVERAGE NET ASSETS PORTFOLIO END OF EXPENSES TO INCOME (LOSS) TO (EXCLUDING WAIVERS (EXCLUDING WAIVERS TURNOVER PERIOD (000) AVERAGE NET ASSETS AVERAGE NET ASSETS AND REIMBURSEMENTS) AND REIMBURSEMENTS) RATE ------------- ------------------ ------------------ ------------------- ------------------- --------- LIFE VISION AGGRESSIVE GROWTH FUND (A) Trust Shares 2001 $ 23,936 0.25% 1.05% 0.43% 0.87% 202% 2000 18,412 0.25 0.48 0.44 0.29 183 1999(1) 18,699 0.27 0.28 0.63 (0.08) 33 For the years ended November 30: 1998 16,230 0.25 0.23 0.66 (0.18) 75 1997(2) 13,712 0.25 0.72 0.73 0.24 34 LIFE VISION GROWTH AND INCOME FUND (A) Trust Shares 2001 $ 37,550 0.25% 2.41% 0.39% 2.27% 286% 2000 30,473 0.25 1.77 0.42 1.60 189 1999(1) 21,950 0.27 1.38 0.60 1.05 40 For the years ended November 30: 1998 19,042 0.25 1.68 0.59 1.34 57 1997(2) 22,521 0.25 2.11 0.59 1.77 25 LIFE VISION MODERATE GROWTH FUND (A) Trust Shares 2001 $ 73,429 0.25% 3.04% 0.37% 2.92% 247% 2000 69,622 0.25 2.19 0.37 2.07 151 1999(1) 88,188 0.27 1.90 0.42 1.75 48 For the years ended November 30: 1998 93,211 0.25 2.21 0.42 2.04 52 1997(2) 89,442 0.25 2.66 0.42 2.49 43 MID-CAP EQUITY FUND Trust Shares 2001 $156,111 1.21% (0.24)% 1.25% (0.28)% 100% 2000 206,545 1.17 -- 1.25 (0.08) 131 1999 254,055 1.17 (0.47) 1.28 (0.58) 76 1998 337,825 1.16 (0.29) 1.27 (0.40) 129 1997 287,370 1.15 0.23 1.26 0.12 152 Investor Shares 2001 $ 12,316 1.66% (0.69)% 1.86% (0.89)% 100% 2000 14,513 1.62 (0.43) 1.81 (0.62) 131 1999 19,230 1.62 (0.90) 1.76 (1.04) 76 1998 24,930 1.61 (0.75) 1.84 (0.98) 129 1997 20,245 1.60 (0.21) 1.85 (0.46) 152 Flex Shares 2001 $ 12,910 2.26% (1.29)% 2.46% (1.49)% 100% 2000 14,588 2.22 (1.05) 2.44 (1.27) 131 1999 15,804 2.22 (1.52) 2.48 (1.78) 76 1998 19,042 2.21 (1.37) 2.47 (1.63) 129 1997 10,120 2.20 (0.85) 2.58 (1.23) 152 SMALL CAP GROWTH STOCK FUND Trust Shares 2001 $ 508,857 1.24% (0.95)% 1.25% (0.96)% 112% 2000 431,478 1.20 (0.86) 1.23 (0.89) 110 1999(3) 152,290 1.20 (0.48) 1.49 (0.77) 75 Investor Shares 2001 $ 28,933 1.60% (1.33)% 1.87% (1.60)% 112% 2000(4) 39,865 1.55 (1.26) 1.79 (1.50) 110 Flex Shares 2001 $ 26,941 2.29% (2.01)% 2.39% (2.11)% 112% 2000 23,228 2.25 (1.92) 2.42 (2.09) 110 1999(3) 6,158 2.25 (1.50) 3.19 (2.44) 75 SMALL CAP VALUE EQUITY FUND Trust Shares 2001 $ 401,900 1.25% 1.72% 1.25% 1.72% 86% 2000 212,074 1.22 1.31 1.25 1.28 65 1999 301,984 1.22 1.27 1.27 1.22 63 1998 390,841 1.21 1.07 1.31 0.97 55 1997(5) 131,049 1.20 1.86 1.37 1.69 27 Flex Shares 2001 $ 11,167 2.30% 0.63% 2.66% 0.27% 86% 2000 8,596 2.27 0.21 2.56 (0.08) 65 1999 19,465 2.27 0.21 2.55 (0.07) 63 1998(6) 40,613 2.06 0.01 2.35 (0.28) 55 + Returns are for the period indicated and have not been annualized. Total return figures do not include applicable sales loads. (1) For the six month period ended May 31, 1999. All ratios for the period have been annualized. (2) Commenced operations on June 30, 1997. All ratios for the period have been annualized. (3) Commenced operations on October 8, 1998. All ratios for the period have been annualized. (4) Commenced operations on December 12, 1999. All ratios for the period have been annualized. (5) Commenced operations on January 31, 1997. All ratios for the period have been annualized. (6) Commenced operations on June 5, 1997. All ratios for the period have been annualized. (A) On May 24, 1999, the CrestFund Life Vision Maximum Growth, CrestFund Life Vision Growth and Income, and CrestFund Life Vision Balanced Portfolios exchanged all of their assets and certain liabilities for shares of the Life Vision Aggressive Growth, Life Vision Growth and Income, and Life Vision Moderate Growth Funds, respectively. The CrestFund Life Vision Maximum Growth, CrestFund Life Vision Growth and Income, and CrestFund Life Vision Balanced Portfolios are the accounting survivors in these transactions, and as a result, their basis of accounting for assets and liabilities and their operating results for the periods prior to May 24, 1999 have been carried forward in these financial highlights. Amounts designated as "--" are either $0 or have been rounded to $0.
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS. 78 & 79 FINANCIAL HIGHLIGHTS ================================================================================ STI CLASSIC EQUITY FUNDS FOR THE PERIODS ENDED MAY 31, FOR A SHARE OUTSTANDING THROUGHOUT THE PERIODS
NET ASSET NET REALIZED AND DISTRIBUTIONS VALUE NET UNREALIZED GAINS FROM NET DISTRIBUTIONS NET ASSET BEGINNING INVESTMENT (LOSSES) INVESTMENT FROM REALIZED VALUE END TOTAL OF PERIOD INCOME (LOSS) ON INVESTMENTS INCOME CAPITAL GAINS OF PERIOD RETURN+ ------------ --------------- ------------------ --------------- ------------- ----------- -------- TAX SENSITIVE GROWTH STOCK FUND Trust Shares 2001 $33.10 $(0.03) $(6.33) $ -- $ -- $26.74 (19.21)% 2000 29.96 0.02 3.12 -- -- 33.10 10.48 1999(1) 25.61 0.02 4.34 (0.01) -- 29.96 17.04 Flex Shares 2001 $32.65 $(0.36) $(6.19) $ -- $ -- $26.10 (20.06)% 2000 29.85 (0.16) 2.96 -- -- 32.65 9.38 1999(2) 25.52 (0.04) 4.37 -- -- 29.85 16.97 VALUE INCOME STOCK FUND Trust Shares 2001 $10.38 $ 0.19 $ 1.24 $(0.20) $ -- $11.61 14.09% 2000 12.85 0.23 (1.49) (0.22) (0.99) 10.38 (10.52) 1999 13.90 0.24 1.02 (0.24) (2.07) 12.85 11.13 1998 13.71 0.26 2.62 (0.27) (2.42) 13.90 23.10 1997 13.15 0.30 2.32 (0.30) (1.76) 13.71 22.18 Investor Shares 2001 $10.35 $ 0.14 $ 1.25 $(0.16) $ -- $11.58 13.63% 2000 12.81 0.19 (1.48) (0.18) (0.99) 10.35 (10.83) 1999 13.87 0.19 1.02 (0.20) (2.07) 12.81 10.71 1998 13.68 0.20 2.62 (0.21) (2.42) 13.87 22.71 1997 13.13 0.25 2.32 (0.26) (1.76) 13.68 21.69 Flex Shares 2001 $10.24 $ 0.04 $1.26 $(0.08) $ -- $11.46 12.85% 2000 12.68 0.08 (1.44) (0.09) (0.99) 10.24 (11.50) 1999 13.75 0.10 1.01 (0.11) (2.07) 12.68 9.91 1998 13.61 0.12 2.57 (0.13) (2.42) 13.75 21.76 1997 13.08 0.18 2.29 (0.18) (1.76) 13.61 20.91
RATIO OF NET INVESTMENT RATIO OF EXPENSES TO INCOME (LOSS) TO NET ASSETS RATIO OF NET INVESTMENT AVERAGE NET ASSETS AVERAGE NET ASSETS PORTFOLIO END OF EXPENSES TO INCOME (LOSS) TO (EXCLUDING WAIVERS (EXCLUDING WAIVERS TURNOVER PERIOD (000) AVERAGE NET ASSETS AVERAGE NET ASSETS AND REIMBURSEMENTS) AND REIMBURSEMENTS) RATE ------------- ------------------ ------------------ ------------------- ------------------- --------- TAX SENSITIVE GROWTH STOCK FUND Trust Shares 2001 $ 460,311 1.24% (0.10)% 1.25% (0.11)% 103% 2000 710,179 1.20 0.13 1.26 0.07 30 1999(1) 223,543 1.20 0.21 1.34 0.07 18 Flex Shares 2001 $ 233,496 2.30% (1.15)% 2.34% (1.19)% 103% 2000 290,595 2.25 (0.91) 2.35 (1.01) 30 1999(2) 75,875 2.25 (0.80) 2.48 (1.03) 18 VALUE INCOME STOCK FUND Trust Shares 2001 $ 704,842 0.90% 1.70% 0.90% 1.70% 77% 2000 921,797 0.89 2.02 0.89 2.02 62 1999 1,589,951 0.92 1.91 0.92 1.91 69 1998 1,725,418 0.92 1.85 0.92 1.85 99 1997 1,488,062 0.91 2.40 0.91 2.40 105 Investor Shares 2001 $ 85,584 1.28% 1.31% 1.31% 1.28% 77% 2000 104,178 1.28 1.64 1.28 1.64 62 1999 194,312 1.28 1.55 1.28 1.55 69 1998 210,591 1.27 1.47 1.27 1.47 99 1997 165,999 1.30 2.01 1.31 2.00 105 Flex Shares 2001 $ 65,895 2.01% 0.59% 2.05% 0.55% 77% 2000 84,563 2.02 0.91 2.03 0.90 62 1999 167,000 2.02 0.81 2.03 0.80 69 1998 180,530 2.01 0.78 2.01 0.78 99 1997 73,466 2.00 1.33 2.03 1.30 105 + Returns are for the period indicated and have not been annualized. Total return figures do not include applicable sales loads. (1) Commenced operations on December 11, 1998. All ratios for the period have been annualized. (2) Commenced operations on December 15, 1998. All ratios for the period have been annualized. Amounts designated as "--" are either $0 or have been rounded to $0.
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS. 80 & 81 NOTES TO FINANCIAL STATEMENTS ================================================================================ STI CLASSIC EQUITY FUNDS MAY 31, 2001 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-four funds as of May 31, 2001: the Balanced Fund, the Capital Appreciation 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" or the "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 (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"). 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 Equity Funds. The financial statements of the Fixed Income Funds, Retail Money Market Funds and Institutional Money Market Funds are not presented herein, but presented separately. On February 20, 2001, the Board of Trustees of the STI Classic Funds approved an Agreement and Plan of Reorganization providing for the transfer of all assets and liabilities of the Core Equity Fund in exchange for the issuance of shares in the Capital Appreciation Fund in a tax-free reorganization (see Note 9). On February 15, 2000 and December 9, 1999 respectively, the Board of Trustees of the STI Classic Funds and the Board of Directors of the ESC Strategic Funds approved an Agreement and Plan of Reorganization providing for the transfer of all assets and certain stated liabilities of the ESC Strategic Funds in exchange for the issuance of shares in certain Funds in a tax-free reorganization (see Note 10). On August 17, 1999 and May 18, 1999, respectively, the Board of Trustees of the STI Classic Funds approved an Agreement and Plan of Reorganization providing for the transfer of all the assets and liabilities of the Emerging Markets Equity Fund and the Sunbelt Equity Fund in exchange for the issuance of shares in the International Equity Fund and Small Cap Growth Stock Fund, respectively, in a tax-free reorganization (see Note 9). 2. Significant Accounting Policies: The following is a summary of significant accounting policies followed by the Trust. SECURITY VALUATION -- Investment securities held by the Equity Funds that are listed on a securities exchange for which market quotations are available are valued at the last quoted sales price each business day. If there is no such reported sale, these securities and unlisted securities for which market quotations are readily available are valued at the most recently quoted bid price. Foreign securities in the International Equity Fund and the International Equity Index Fund are valued based upon quotations from the primary market in which they are traded. Debt obligations with sixty days or less remaining until maturity may be valued at their amortized cost. Securities for which current market quotations are not readily available, of which there are none as of May 31, 2001, are valued at their fair value as determined in good faith by, or in accordance with procedures adopted by, the Board of Trustees. FEDERAL INCOME TAXES -- It is each Fund's intention to continue 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). Dividend income is recognized on the ex-dividend date and 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 82 ================================================================================ period. Purchase discounts and premiums on securities held by the Funds are accreted and amortized to maturity using the scientific interest method, which approximates the effective interest method. 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. The maximum offering price per share for Investor shares of the Balanced, Capital Appreciation, Growth and Income, International Equity, International Equity Index, Mid-Cap Equity, Small Cap Growth Stock, and Value Income Stock Funds is equal to the net asset value per share plus a sales load of 3.75%. Flex Shares of the Funds may be purchased at their net asset value. Shares redeemed within the first year after purchase will be subject to a contingent deferred sales charge ("CDSC") equal to 2.00% for either the net asset value of the shares at the time of purchase or the net asset value of the shares next calculated after the Fund receives the sale request, whichever is less. The CDSC will not apply to shares redeemed after such time. FOREIGN CURRENCY TRANSLATION -- The books and records of the International Equity and the International Equity Index Funds are maintained in U.S. dollars on the following basis: (I) market value of investment securities, assets and liabilities at the current rate of exchange; and (II) purchases and sales of investment securities, income and expenses at the relevant rates of exchange prevailing on the respective dates of such transactions. The International Equity and the International Equity Index Funds do not isolate that portion of gains and losses on investments in equity securities that is due to changes in the foreign exchange rates from that which is due to changes in market prices of equity securities. The International Equity and the International Equity Index Funds report certain foreign currency related transactions as components of realized and unrealized gains and losses for financial reporting purposes, whereas such components are treated as ordinary income for Federal income tax purposes. TBA PURCHASE COMMITMENTS -- The Balanced Fund may enter into "TBA" (To Be Announced) purchase commitments to purchase securities for a fixed price at a future date beyond customary settlement time. TBA purchase commitments may be considered securities in themselves, and involve a risk of loss if the value of the security to be purchased declines prior to settlement date. Unsettled TBA purchase commitments are valued at the current market value of the underlying securities, generally according to the procedures described under "Security Valuation." 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. DIVIDENDS AND DISTRIBUTIONS TO SHAREHOLDERS -- Distributions from net investment income are declared and paid each calendar quarter by the Equity Funds, except for the International Equity and the International Equity Index Funds. These Funds distribute income annually. 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 accounting principles generally accepted in the United States. 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 83 NOTES TO FINANCIAL STATEMENTS (continued) ================================================================================ STI CLASSIC EQUITY FUNDS MAY 31, 2001 income for tax purposes, have been reclassified to/from the following accounts: UNDISTRIBUTED ACCUMULATED NET INVESTMENT PAID-IN-CAPITAL REALIZED GAIN INCOME (LOSS) (000) (LOSS) (000) (000) -------------- ------------- -------------- Capital Appreciation Fund.......... $(7,697) $ 1 $7,696 E-Commerce Opportunity Fund (904) -- 904 Growth and Income Fund.......... -- 3 (3) International Equity Fund......... (2,802) (467) 3,269 International Equity Index Fund... -- (22) 22 Life Vision Aggressive Growth Fund... (4) -- 4 Life Vision Growth and Income Fund..... -- 80 (80) Life Vision Moderate Growth Fund... -- 1 (1) Mid-Cap Equity Fund (709) 1 708 Small Cap Growth Stock Fund.... (3,979) (1,492) 5,471 Tax Sensitive Growth Stock Fund.... (3,399) -- 3,399 These reclassification have no effect on net assets or net asset values per share. USE OF ESTIMATES -- The preparation of 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. AUDIT GUIDE IMPLEMENTATION -- On November 21, 2000, the American Institute of Certified Public Accountants ("AICPA") issued the AICPA~Audit and Accounting Guide "Audits of Investment Companies" (the "Guide"), effective for annual financial statements issued for fiscal years beginning after December 15, 2000. Management of the Funds do not expect any material impact on results of operations or financial condition of the Funds upon adoption of the provisions of the Guide. 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 has entered into an agreement with the Distributor to act as an agent in placing repurchase agreements for the Trust. For its services the Distributor received $2,017,314 for the year ended May 31, 2001. 4. Administration, Transfer Agency Servicing and Distribution 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: 0.12% up to $1 billion, 0.09% on the next $4 billion, 0.07% on the next $3 billion, 0.065% on the next $2 billion and 0.06% for over $10 billion. 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. The Trust and the Distributor are parties to a Distribution and Service Agreement dated May 29, 1995 regarding the Flex Shares and a Distribution Agreement dated November 21, 1995 with respect to the Trust and Investor shares. The Distributor will receive no fees for its distribution services under this agreement for the Trust Shares of any Fund. With respect to the Investor Shares and Flex Shares, the Distributor receives amounts, pursuant to a Distribution Plan and (in the case of Flex Shares) a Distribution and Service Plan, as outlined in the table in footnote 5 under the column titled "Distribution Fee". 5. Investment Advisory and Custodian Agreements: The Trust and STI Capital Management, N.A., Trusco Capital Management and SunTrust Bank, Atlanta have entered into advisory agreements dated May 29, 1992, June 15, 1993, and December 20, 1993, respectively. 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. (the "Investment Adviser"). 84 Under terms of the respective agreements, the Funds are charged the following annual fees based upon average daily net assets: MAXIMUM FLEX SHARE MAXIMUM MAXIMUM DISTRIBUTION ANNUAL INVESTOR SHARE AND ADVISORY FEE DISTRIBUTION FEE SERVICE FEE ------------ ---------------- ----------- Balanced Fund .................... 0.95% 0.28% 1.00% Capital Appreciation Fund ........ 1.15% 0.68% 1.00% E-Commerce Opportunity Fund ...... 1.10% -- 1.00% Growth and Income Fund ........... 0.90% 0.25% 1.00% International Equity Fund ........ 1.25% 0.33% 1.00% International Equity Index Fund .. 0.90% 0.38% 1.00% Life Vision Aggressive Growth Fund 0.25% -- -- Life Vision Growth and Income Fund 0.25% -- -- Life Vision Moderate Growth Fund . 0.25% -- -- Mid-Cap Equity Fund .............. 1.15% 0.43% 1.00% Small Cap Growth Stock Fund ...... 1.15% 0.50% 1.00% Small Cap Value Equity Fund ...... 1.15% -- 1.00% Tax Sensitive Growth Stock Fund .. 1.15% -- 1.00% Value Income Stock Fund .......... 0.80% 0.33% 1.00% The Investment Adviser and the Distributor 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, acts as custodian for all the Funds except the International Equity and the International Equity Index Funds who utilize the Bank of New York as custodian. Fees of the custodians are paid on the basis of the net assets of the Funds. The custodians play 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: The cost of purchases and the proceeds from sales of securities, excluding short-term investments and U.S. Government securities, for the year ended May 31, 2001, were as follows: PURCHASES SALES (000) (000) --------- --------- Balanced Fund ....................... $ 180,446 $ 207,914 Capital Appreciation Fund ........... 1,278,645 1,344,398 E-Commerce Opportunity Fund.......... 981,500 984,541 Growth and Income Fund............... 718,498 716,397 International Equity Fund............ 169,944 227,186 International Equity Index Fund...... 38,397 81,830 Life Vision Aggressive Growth Fund .. 45,774 40,764 Life Vision Growth and Income Fund... 112,386 106,160 Life Vision Moderate Growth Fund..... 185,204 181,961 Mid-Cap Equity Fund ................. 197,490 225,557 Small Cap Growth Stock Fund.......... 616,593 592,195 Small Cap Value Equity Fund.......... 265,486 207,178 Tax Sensitive Growth Stock Fund...... 914,794 1,029,293 Value Income Stock Fund.............. 644,148 946,545 The cost of U.S. Government security purchases and the proceeds from the sale of U.S. Government securities for the Balanced Fund during the year ended May 31, 2001, were $85,771,897 and $73,150,163, respectively. Subsequent to October 31, 2000, the Funds recognized net capital losses for tax purposes that have been deferred to 2001 and can be used to offset future capital gains at May 31, 2001. The Funds also had capital loss carryforwards at May 31, 2001 as follows:
POST POST 10/31 CAPITAL LOSS 10/31 CURRENCY CARRYOVER EXPIRES EXPIRES EXPIRES EXPIRES DEFERRED LOSS 5/31/01 2006 2007 2008 2009 LOSS DEFERRED FUND (000) (000) (000) (000) (000) (000) (000) ----- ------- ------- -------- -------- ------- ------- -------- Capital Appreciation Fund $ 7,963 $ -- $ -- $ 7,963 $ -- $ 8,387 $ -- E-Commerce Opportunity Fund 1,102 -- -- 18 1,084 37,001 -- Growth and Income Fund 724 -- -- -- 724 -- -- International Equity Fund 9,348 1,506 4,448 -- 3,394 11,323 376 International Equity Index Fund 6,234 -- -- -- 6,234 14,959 204 Life Vision Aggressive Growth Fund -- -- -- -- -- 8 -- Life Vision Growth and Income Fund -- -- -- -- -- 105 -- Life Vision Moderate Growth Fund -- -- -- -- -- 703 -- Mid-Cap Equity Fund -- -- -- -- -- 783 -- Small Cap Growth Stock Fund 4,855 574 4,281 -- -- -- -- Small Cap Value Equity Fund 42,651 -- 13,277 29,374 -- 9,773 -- Tax Sensitive Growth Stock Fund 40,369 -- 142 40,227 -- -- -- Value Income Stock Fund 203,787 -- -- -- 203,787 -- --
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. The following Funds had cumulative wash sales for the fiscal year ended May 31, 2001: FUND AMOUNT ------- ---------- Balanced Fund ..................................$ 514,291 Capital Appreciation Fund ...................... 5,795,344 E-Commerce Opportunity Fund..................... 2,090,475 Growth and Income Fund.......................... 867,876 International Equity Fund....................... 494,020 International Equity Index Fund................. 1,616,364 Life Vision Aggressive Growth Fund ............. 266,571 Life Vision Growth and Income Fund.............. 1,307,910 Life Vision Moderate Growth Fund................ 1,514,930 Mid-Cap Equity Fund ............................ 1,186,459 Small Cap Growth Stock Fund..................... 4,813,950 Small Cap Value Equity Fund..................... 724,759 Tax Sensitive Growth Stock Fund................. 32,662,185 Value Income Stock Fund......................... 484,478 At May 31, 2001, the total cost of securities and the net realized gains or losses on securities sold for Federal income tax purposes were not materially different from amounts reported for financial reporting purposes. The aggregate gross unrealized appreciation and depreciation for securities held by the Funds at May 31, 2001, were as follows: AGGREGATE AGGREGATE NET GROSS GROSS UNREALIZED UNREALIZED UNREALIZED APPRECIATION APPRECIATION (DEPRECIATION) (DEPRECIATION) FUND (000) (000) (000) ---- ------------ -------------- -------------- Balanced Fund .............. $ 39,142 $(4,728) $ 34,414 Capital Appreciation Fund .. 362,412 (29,631) 332,781 E-Commerce Opportunity Fund. 7,932 (5,851) 2,081 Growth and Income Fund...... 204,631 (27,992) 176,639 International Equity Fund... 16,793 (27,887) (11,094) International Equity Index Fund 21,483 (47,623) (26,140) Life Vision Aggressive Growth Fund.............. 1,832 (950) 882 Life Vision Growth and Income Fund.............. 2,772 (598) 2,174 Life Vision Moderate Growth Fund..................... 4,396 (2,505) 1,891 Mid-Cap Equity Fund ........ 32,806 (20,667) 12,139 Small Cap Growth Stock Fund. 141,977 (30,162) 111,815 Small Cap Value Equity Fund. 53,491 (14,483) 39,008 Tax Sensitive Growth Stock Fund 134,746 (53,143) 81,603 Value Income Stock Fund .... 132,814 (15,318) 117,496 85 NOTES TO FINANCIAL STATEMENTS (continued) ================================================================================ STI CLASSIC EQUITY FUNDS MAY 31, 2001 7. Capital Share Transactions: Capital Share Transactions for the Funds were as follows (000):
CAPITAL BALANCED FUND APPRECIATION FUND -------------------- ------------------- 06/01/00- 06/01/99- 06/01/00- 06/01/99- 05/31/01 05/31/00 05/31/01 05/31/00 --------- --------- --------- --------- Trust Shares: Shares Issued .............................................................. 4,141 7,060 15,774 18,930 Shares Issued in Connection with Fund Reorganizations ...................... -- -- 16,143 -- Shares Issued in Lieu of Cash Distributions ................................ 752 734 11,118 5,218 Shares Redeemed ............................................................ (5,741) (10,050) (33,979) (66,755) ------ ------- ------- -------- Net Trust Share Transactions ................................................. (848) (2,256) 9,056 (42,607) ------ ------- ------- -------- Investor Shares: Shares Issued 35 149 435 782 Shares Issued in Connection with ESC Merger -- -- -- -- Shares Issued in Lieu of Cash Distributions 27 36 2,538 1,010 Shares Redeemed ............................................................ (187) (591) (2,961) (5,728) ------ ------- ------- -------- Net Investor Share Transactions .............................................. (125) (406) 12 (3,936) ------ ------- ------- -------- Flex Shares: Shares Issued .............................................................. 1,599 1,989 1,334 1,804 Shares Issued in Connection with Fund Reorganizations....................... -- 440 Shares Issued in Connection with ESC Merger ................................ -- -- -- -- Shares Issued in Lieu of Cash Distributions................................. 160 180 1,358 567 Shares Redeemed ............................................................ (1,419) (2,903) (2,335) (4,592) ------ ------- ------- -------- Net Flex Share Transactions .................................................. 340 (734) 797 (2,221) ------ ------- ------- -------- Net Change in Capital Shares.................................................. (633) (3,396) 9,865 (48,764) ====== ======= ======= ========
E-COMMERCE OPPORTUNITY GROWTH AND INTERNATIONAL FUND INCOME FUND EQUITY FUND ---------------------- ---------------------- --------------------- 06/01/00- 09/30/99*- 06/01/00- 06/01/99- 06/01/00- 06/01/99- 05/31/01 05/31/00 05/31/01 05/31/00 05/31/01 05/31/00 --------- ---------- --------- --------- --------- --------- Trust Shares: Shares Issued ........................................... 2,421 8,128 15,726 24,090 4,749 5,136 Shares Issued in Connection with Fund Reorganizations ... -- -- -- -- -- 1,794 Shares Issued in Lieu of Cash Distributions ............. -- -- 1,340 2,200 1,877 5,244 Shares Redeemed ......................................... (2,603) (1,422) (16,409) (8,699) (10,018) (32,574) ------- -------- ------- -------- ------- -------- Net Trust Share Transactions .............................. (182) 6,706 657 17,591 (3,392) (20,400) ------- -------- ------- -------- ------- -------- Investor Shares: Shares Issued -- -- 351 1,108 3,452 91 Shares Issued in Connection with ESC Merger -- -- -- 502 -- 103 Shares Issued in Lieu of Cash Distributions -- -- 75 159 70 135 Shares Redeemed ......................................... -- -- (504) (1,321) (3,618) (585) ------- -------- ------- -------- ------- -------- Net Investor Share Transactions ........................... -- -- (78) 448 (96) (256) ------- -------- ------- -------- ------- -------- Flex Shares: Shares Issued ........................................... 844 1,330 2,141 2,436 659 165 Shares Issued in Connection with Fund Reorganizations.... -- -- -- Shares Issued in Connection with ESC Merger ............. -- -- -- 97 -- 57 Shares Issued in Lieu of Cash Distributions.............. -- -- 106 182 80 163 Shares Redeemed ......................................... (441) (52) (1,039) (867) (840) (839) ------- -------- ------- -------- ------- -------- Net Flex Share Transactions ............................... 403 1,278 1,208 1,848 (101) (454) ------- -------- ------- -------- ------- -------- Net Change in Capital Shares............................... 221 7,984 1,787 19,887 (3,589) (21,110) ======= ======== ======= ======== ======= ========
INTERNATIONAL LIFE VISION EQUITY INDEX AGGRESSIVE FUND GROWTH FUND --------------------- ---------------------- 06/01/00- 06/01/99- 06/01/00- 06/01/99- 05/31/01 05/31/00 05/31/01 05/31/00 --------- --------- --------- ---------- Trust Shares: Shares Issued .............................................................. 7,104 20,423 1,350 983 Shares Issued in Connection with Fund Reorganizations ...................... -- -- -- -- Shares Issued in Lieu of Cash Distributions ................................ 230 70 262 81 Shares Redeemed ............................................................ (10,554) (2,401) (876) (1,132) ------ ------- ------ ------ Net Trust Share Transactions ................................................. (3,220) 18,092 736 (68) ------ ------- ------ ------ Investor Shares: Shares Issued 1,680 211 -- -- Shares Issued in Connection with ESC Merger -- -- -- -- Shares Issued in Lieu of Cash Distributions 2 3 -- -- Shares Redeemed ............................................................ (1,701) (302) -- -- ------ ------- ------ ------ Net Investor Share Transactions .............................................. (19) (88) -- -- ------ ------- ------ ------ Flex Shares: Shares Issued .............................................................. 577 363 -- -- Shares Issued in Connection with Fund Reorganizations....................... -- -- Shares Issued in Connection with ESC Merger ................................ -- -- -- -- Shares Issued in Lieu of Cash Distributions................................. 4 1 -- -- Shares Redeemed ............................................................ (574) (63) -- -- ------ ------- ------ ------ Net Flex Share Transactions .................................................. 7 301 -- -- ------ ------- ------ ------ Net Change in Capital Shares.................................................. (3,232) 18,305 736 (68) ====== ======= ====== ======
LIFE VISION LIFE VISION GROWTH AND INCOME FUND MODERATE GROWTH FUND --------------------- ---------------------- 06/01/00- 06/01/99- 06/01/00- 06/01/99- 05/31/01 05/31/00 05/31/01 05/31/00 --------- --------- --------- ---------- Trust Shares: Shares Issued ....................................................... 2,263 1,802 5,756 3,097 Shares Issued in Connection with Fund Reorganizations ............... -- -- -- -- Shares Issued in Lieu of Cash Distributions ......................... 270 90 920 491 Shares Redeemed ..................................................... (1,833) (1,113) (5,690) (5,194) ------ ------ ------ ------ Net Trust Share Transactions .......................................... 700 779 986 (1,606) ------ ------ ------ ------ Investor Shares: Shares Issued ....................................................... -- -- -- -- Shares Issued in Connection with Fund Reorganizations................ -- -- -- -- Shares Issued in Connection with ESC Merger.......................... -- -- -- -- Shares Issued in Lieu of Cash Distributions ......................... -- -- -- -- Shares Redeemed ..................................................... -- -- -- -- ------ ------ ------ ------ Net Investor Share Transactions ....................................... -- -- -- -- ------ ------ ------ ------ Flex Shares: Shares Issued ....................................................... -- -- -- -- Shares Issued in Connection with Fund Reorganizations................ -- -- -- -- Shares Issued in Connection with ESC Merger.......................... -- -- -- -- Shares Issued in Lieu of Cash Distributions ......................... -- -- -- -- Shares Redeemed ..................................................... -- -- -- -- ------ ------ ------ ------ Net Flex Share Transactions ........................................... -- -- -- -- ------ ------ ------ ------ Net Change in Capital Shares......................................... 700 779 986 (1,606) ====== ====== ====== ======
MID-CAP EQUITY SMALL CAP GROWTH FUND STOCK FUND --------------------- --------------------- 06/01/00- 06/01/99- 06/01/00- 06/01/99- 05/31/01 05/31/00 05/31/01 05/31/00 --------- --------- --------- ---------- Trust Shares: Shares Issued ............................................... 9,459 11,917 7,958 11,362 Shares Issued in Connection with Fund Reorganizations ....... -- -- -- 5,705 Shares Issued in Lieu of Cash Distributions ................. 2,492 1,197 1,679 127 Shares Redeemed ............................................. (12,345) (18,496) (5,529) (4,061) ------- ------- ------ ------ Net Trust Share Transactions .................................. (394) (5,382) 4,108 13,133 ------- ------- ------ ------ Investor Shares: Shares Issued ............................................... 635 108 345 127 Shares Issued in Connection with Fund Reorganizations........ -- -- -- 758 Shares Issued in Connection with ESC Merger.................. -- -- -- 1,677 Shares Issued in Lieu of Cash Distributions ................. 202 98 131 -- Shares Redeemed ............................................. (729) (695) (1,064) (390) ------- ------- ------ ------ Net Investor Share Transactions ............................... 108 (489) (588) 2,172 ------- ------- ------ ------ Flex Shares: Shares Issued ............................................... 441 273 472 261 Shares Issued in Connection with Fund Reorganizations........ -- -- -- 170 Shares Issued in Connection with ESC Merger.................. -- -- -- 712 Shares Issued in Lieu of Cash Distributions ................. 214 89 105 5 Shares Redeemed ............................................. (474) (567) (354) (288) ------- ------- ------ ------ Net Flex Share Transactions ................................... 181 (205) 223 860 ------- ------- ------ ------ Net Change in Capital Shares................................. (105) (6,076) 3,743 16,165 ======= ======= ====== ======
SMALL CAP VALUE TAX SENSITIVE VALUE INCOME EQUITY FUND GROWTH STOCK FUND STOCK FUND --------------------- --------------------- --------------------- 06/01/00- 06/01/99- 06/01/00- 06/01/99- 06/01/00- 06/01/99- 05/31/01 05/31/00 05/31/01 05/31/00 05/31/01 05/31/00 --------- --------- --------- ---------- --------- --------- Trust Shares: Shares Issued .......................................... 17,362 10,968 3,365 16,874 15,463 32,686 Shares Issued in Connection with Fund Reorganizations .. -- -- -- -- -- -- Shares Issued in Lieu of Cash Distributions ............ 298 294 -- -- 1,281 12,665 Shares Redeemed ........................................ (7,956) (19,166) (7,610) (2,879) (44,811) (80,311) ------ ------- ------ ------ ------- ------- Net Trust Share Transactions ............................. 9,704 (7,904) (4,245) 13,995 (28,067) (34,960) ------ ------- ------ ------ ------- ------- Investor Shares: Shares Issued .......................................... -- -- -- -- 195 596 Shares Issued in Connection with Fund Reorganizations... -- -- -- -- -- -- Shares Issued in Connection with ESC Merger............. -- -- -- -- -- -- Shares Issued in Lieu of Cash Distributions ............ -- -- -- -- 131 1,463 Shares Redeemed ........................................ -- -- -- -- (2,999) (7,163) ------ ------- ------ ------ ------- ------- Net Investor Share Transactions .......................... -- -- -- -- (2,673) (5,104) ------ ------- ------ ------ ------- ------- Flex Shares: Shares Issued .......................................... 294 194 2,438 7,452 453 1,626 Shares Issued in Connection with Fund Reorganizations... -- -- -- -- -- -- Shares Issued in Connection with ESC Merger............. -- -- -- -- -- -- Shares Issued in Lieu of Cash Distributions ............ 5 1 -- -- 55 1,198 Shares Redeemed ........................................ (325) (1,266) (2,392) (1,094) (3,011) (7,736) ------ ------- ------ ------ ------- ------- Net Flex Share Transactions .............................. (26) (1,071) 46 6,358 (2,503) (4,912) ------ ------- ------ ------ ------- ------- Net Change in Capital Shares............................ 9,678 (8,975) (4,199) 20,353 (33,243) (44,976) ====== ======= ====== ====== ======= =======
*Commencement of operations. Amounts designated as "--" are either $0 or have been rounded to $0. 86 & 87 NOTES TO FINANCIAL STATEMENTS (concluded) ================================================================================ STI CLASSIC EQUITY FUNDS MAY 31, 2001 8. Concentration of Credit Risk: The E-Commerce Opportunity Fund invests a substantial portion of its assets in securities in the technology industry. Therefore, it may be more affected by economic and political developments in that industry than a general equity fund would be. The International Equity and International Equity Index Funds invest in securities of foreign issuers in various countries. These investments may involve certain considerations and risks not typically associated with investments in the United States as a result of, among other factors, the possibility of future political and economic developments and the level of governmental supervision and regulation of securities markets in the respective countries. 9. Fund Reorganizations: On May 18, 2001 the Capital Appreciation Fund acquired all of the assets of the Core Equity Fund pursuant to the plan of reorganization approved by the shareholders of the Core Equity Fund on May 18, 2001. The following table summarizes certain relevant information of these Funds prior to and immediately after the business combination on May 18, 2001 and is unaudited. SHARES OUTSTANDING ON MERGER UNREALIZED FUND DATE APPRECIATION ------ ----------- -------------- Core Equity Fund Trust Shares ......................20,993,304 $23,724,070 Flex Shares........................ 547,370 515,296 (1) Represents the accounting survivor in this business combination. SHARES ISSUED NET ASSETS NAV IN BUSINESS AFTER PER FUND COMBINATION COMBINATION SHARE ------- ------------- ----------- ------- Capital Appreciation Fund (1) Trust Shares.................. 16,143,326 $1,205,864,347 $14.15 Flex Shares .................. 439,947 114,299,999 13.34 On December 10, 1999 the Small Cap Growth Stock Fund and the International Equity Fund acquired all of the assets of the Sunbelt Equity Fund and Emerging Markets Equity Fund, respectively, pursuant to the plan of reorganization approved by the shareholders of the Sunbelt Equity Fund and Emerging Markets Equity Fund on December 10, 1999. The following table summarizes certain relevant information of these Funds prior to and immediately after the business combination on December 10, 1999 and is unaudited. SHARES OUTSTANDING UNREALIZED ON MERGER APPRECIATION STI CLASSIC FUNDS DATE (DEPRECIATION) ------------------- ----------- ------------- Emerging Markets Equity Trust Shares ..................... 2,393,361 $ 55,572* Sunbelt Equity Trust Shares ..................... 9,176,663 25,562,904 Investor Shares .................. 1,261,749 1,907,642 Flex Shares ...................... 287,227 (1,283,351) SHARES ISSUED NET ASSETS NAV IN BUSINESS AFTER PER STI CLASSIC FUNDS COMBINATION COMBINATION SHARE ------------------- ------------- ----------- ---------- International Equity (1) Trust Shares......... 1,794,029 $575,635,094 $12.22 Small Cap Growth Stock (1) Trust Shares ........ 5,705,132 305,649,316 16.46 Investor Shares ..... 758,425 12,481,372 16.46 Flex Shares ......... 170,464 9,892,809 16.26 * Includes unrealized gain on investments and unrealized loss on foreign currency. (1) Represents the accounting survivor in this business combination. 88 10. ESC Strategic Funds Merger: The Board of Directors and shareholders of the ESC Funds approved a reorganization of the ESC Funds into STI Classic Funds which took place at the close of business on March 24, 2000. The following table summarizes certain relevant information of the Funds prior to and immediately after the business combinations on March 24, 2000 and is unaudited. SHARES OUTSTANDING UNREALIZED ON MERGER APPRECIATION ESC FUNDS DATE (DEPRECIATION) ------------ ----------- -------------- Appreciation Fund Class A .......................... 870,690 $ 2,501,314 Class D 175,438 (1,297,012) Small Cap Fund Class A............................ 1,275,432 6,276,446 Class D............................ 480,442 2,865,501 Small Cap II Fund Class A............................ 500,936 2,188,506 Class D............................ 317,826 1,262,314 International Equity Class A ........................... 170,094 315,475* Class D............................ 96,927 (22,816)* SHARES ISSUED NET ASSETS NAV IN BUSINESS AFTER PER STI CLASSIC FUNDS CONNECTION COMBINATION SHARE ------------------ ------------- ----------- ------- Growth and Income Fund(1) Investor Shares...... 502,426 $50,200,825 $15.90 Flex Shares ......... 97,459 62,797,756 15.76 Small Cap Growth Stock Fund(1) Investor Shares......1,335,449 47,582,016 20.55 Flex Shares ......... 495,872 27,591,623 20.27 Small Cap Growth Stock Fund(1) Investor Shares...... 341,148 47,582,016 20.55 Flex Shares ......... 216,285 27,591,623 20.27 International Equity(1) Investor Shares...... 103,172 11,187,283 12.04 Flex Shares ......... 57,124 12,018,530 11.65 * Includes unrealized gain on investments and unrealized loss on foreign currency. (1) Represents the accounting survivor in this business combination. 11. Shareholder Voting Results (Unaudited): There was a special meeting of shareholders held on May 18, 2001 at which the shareholders of the Core Equity Fund were asked to approve the agreement and plan of reorganization relating to the Core Equity Fund and the Capital Appreciation Fund. The following were the results of the vote by proposal: SHARES % OF % OF VOTED VOTED TOTAL ---------- -------- -------- For.....................18,343,729 99.92% 92.41% Against................. 5,861 0.03% 0.02% Abstain................. 6,999 0.03% 0.03% ---------- -------- -------- 18,356,589 100.00% 92.48% 12. Subsequent Event Effective June 1, 2001, the E-Commerce Opportunity Fund changed its name to the Information and Technology Fund. 89 REPORT OF INDEPENDENT PUBLIC ACCOUNTANTS ================================================================================ STI CLASSIC EQUITY FUNDS MAY 31, 2001 To the Shareholders and Board of Trustees of STI Classic Funds: We have audited the accompanying statements of net assets of the Balanced, Capital Appreciation, Growth & Income, International Equity, International Equity Index, Life Vision Aggressive Growth, Life Vision Growth & Income, Life Vision Moderate Growth, Mid-Cap Equity, Small Cap Growth Stock, Small Cap Value Equity, Tax Sensitive Growth Stock, and Value Income Stock Funds, and the statement of assets and liabilities, including the schedule of investments, of the E-Commerce Opportunity Fund of STI Classic Funds (the "Trust") as of May 31, 2001, 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 thXe Trust's management. Our responsibility is to express an opinion on these financial statements and financial highlights based on our audits. The financial highlights for the periods prior to May 31, 1999, for the Growth & Income, Life Vision Aggressive Growth, Life Vision Growth & Income, and Life Vision Moderate Growth 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, 2001, by correspondence with the custodian and brokers or by other appropriate auditing procedures where replies from brokers were not received. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion. In our opinion, the financial statements and financial highlights referred to above present fairly, in all material respects, the financial position of the Balanced, Capital Appreciation, E-Commerce Opportunity, Growth & Income, International Equity, International Equity Index, Life Vision Aggressive Growth, Life Vision Growth & Income, Life Vision Moderate Growth, Mid-Cap Equity, Small Cap Growth Stock, Small Cap Value Equity, Tax Sensitive Growth Stock, and Value Income Stock Funds of STI Classic Funds as of May 31, 2001, 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, 2001 90 NOTICE TO SHAREHOLDERS ================================================================================ STI CLASSIC EQUITY FUNDS MAY 31, 2001 UNAUDITED For shareholders that do not have a May 31, 2001 tax year end, this notice is for informational purposes only. For shareholders with a May 31, 2001 tax year end, please consult your tax advisor as to the pertinence of this notice. For the fiscal year ended May 31, 2001, each Fund is designating the following items with regard to distributions paid during the year:
LONG TERM QUALIFIED FOREIGN (20% RATE) 5 YEAR ORDINARY TAX CAPITAL GAIN GAIN INCOME TAX-EXEMPT TOTAL QUALIFYING WITHHOLDING FUND DISTRIBUTION DISTRIBUTION DISTRIBUTIONS INTEREST DISTRIBUTIONS DIVIDENDS (1) PASS THROUGH (2) ----- ------------ ------------ ------------- ---------- ------------- ------------- --------------- Balanced Fund 43.14% --% 56.86% --% 100.00% 22.14% --% Capital Appreciation Fund 88.10 -- 11.90 -- 100.00 27.40 -- E-Commerce Opportunity Fund -- -- -- -- -- -- -- Growth and Income Fund 84.68 -- 15.32 -- 100.00 100.00 -- International Equity Fund 42.39 -- 57.61 -- 100.00 -- -- International Equity Index Fund 24.90 -- 75.10 -- 100.00 -- 13.22 Life Vision Aggressive Growth Fund 68.22 -- 31.63 -- 99.85 -- -- Life Vision Growth and Income Fund 40.86 -- 59.14 -- 100.00 -- -- Life Vision Moderate Growth Fund 62.23 -- 37.77 -- 100.00 -- -- Mid-Cap Equity Fund 37.60 -- 62.40 -- 100.00 7.76 -- Small Cap Growth Stock Fund 69.95 -- 30.05 -- 100.00 -- -- Small Cap Value Equity Fund -- -- 100.00 -- 100.00 97.68 -- Value Income Stock Fund -- -- 100.00 -- 100.00 92.59 -- ----------------- (1) Qualifying dividends represent dividends which qualify for the corporate dividends received deduction and is reflected as a percentage of "Ordinary Income Distributions". (2) Foreign tax credit pass through represents the amount eligible for the foreign tax credit and is reflected as a percentage of "Ordinary Income Distributions".
NOTES 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. [STI Logo Omitted] Backed by Tradition. Strengthened by Experience.SM STI-AR-001-0100