-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, IYO8Bc85LbRzEpLAVMLZvp2YM/3Dj1bzrPniS4W/CzyoALGHSLOnamuOKRLHslyM uyQv8VWrvvHMajbndFyqhg== 0000935069-02-000035.txt : 20020414 0000935069-02-000035.hdr.sgml : 20020414 ACCESSION NUMBER: 0000935069-02-000035 CONFORMED SUBMISSION TYPE: N-30D PUBLIC DOCUMENT COUNT: 1 CONFORMED PERIOD OF REPORT: 20011130 FILED AS OF DATE: 20020124 FILER: COMPANY DATA: COMPANY CONFORMED NAME: STI CLASSIC FUNDS CENTRAL INDEX KEY: 0000883939 STATE OF INCORPORATION: MA FISCAL YEAR END: 0531 FILING VALUES: FORM TYPE: N-30D SEC ACT: 1940 Act SEC FILE NUMBER: 811-06557 FILM NUMBER: 02515498 BUSINESS ADDRESS: STREET 1: 2 OLIVER STREET CITY: BOSTON STATE: MA ZIP: 02109 BUSINESS PHONE: 6109896602 MAIL ADDRESS: STREET 1: 530 E SWEDESFORD ROAD CITY: WAYNE STATE: PA ZIP: 19087-1693 N-30D 1 sticlassicinstisar.txt STI CLASSIC FUNDS INSTITUTIONAL SAR 11_30_01 SEMI-ANNUAL - ------------------------------------------------------------------------------- FINANCIAL REPORT - ------------------------------------------------------------------------------- STI CLASSIC FUNDS - ------------------------------------------------------------------------------- A Family of Mutual Funds - ------------------------------------------------------------------------------- CLASSIC INSTITUTIONAL CASH MANAGEMENT MONEY MARKET FUND CLASSIC INSTITUTIONAL U.S. GOVERNMENT SECURITIES MONEY MARKET FUND CLASSIC INSTITUTIONAL U.S. TREASURY SECURITIES MONEY MARKET FUND November 30, 2001 [STI CLASSIC FUNDS LOGO OMITTED] Dear Valued STI Classic Funds' Shareholder: Equity prices, as measured by the S&P 500 Composite Index, drifted downward all summer despite lower interest rates. The primary causes were persistent erosion in profits expectations and a generally downbeat news flow, especially in the technology and telecommunications sectors which remained over-supplied with inventory. Price weakness continued in early September right up until the tragic terrorist attacks on the 11th. After a sharp but brief sell-off when the markets reopened on September 17th, equities bottomed on September 21st and through early December had recovered about 18% from the absolute low. In late November, a recession was declared to have begun in March. In the aftermath of September 11th, we urged an aggressive approach to stocks. Our rationale included the following reasons for more constructive near-term view: 1) Aggressive lowering of short-term interest rates by the Federal Reserve (the "Fed") was potentially beneficial to the economy; 2) The Federal Government was also increasing fiscal stimulus to boost the economy; 3) Long-term interest rates had fallen to 40-year lows, making stocks more attractive; 4) Analysts' estimates for profits growth were finally beginning to approach realistic levels; 5) Investor psychology was very negative and it almost always pays to be optimistic when the consensus is gloomy; and finally 6) The bear market was eighteen months old, measured from March 2000, which was lengthy compared to an average bear market of about eleven months. In short, while there were plenty of reasons for concern, markets in the past have tended to overreact to crisis events. Generally such negative overreactions are the right time to lean the other way and become more positive in action. So far, this has played out in exactly the same fashion, with the best performing sectors off the September lows including economically sensitive Technology, Materials, Capital Goods and Consumer Discretionary stocks. On the other side of the ledger, defensive sectors such as Utilities and Energy have lagged. The market, having come a good ways in a hurry, may pause for breath, but overall it is on a typical track of recovering over 20% and several months in time before the end of a recession. Since we believe corporate profits will be on the upswing by Q2-2002, the market is performing its usual role of looking ahead to discount a better economy next year. Over the last six months, investors have experienced both good and bad returns depending on asset mix. The mixed results illustrate again the merits of following sound diversification particularly for conservative investors who wish to minimize volatility. For example, bonds did quite well June through November, with corporate bonds up 5.9% and Governments up 6.3%. Stock investors were less fortunate, with the Large Cap S&P 500 -8.7% for the six-month period. The S&P 400 Mid Cap Index declined 6.8% and the S&P 600 Small Cap Index fell 2.6% during this period. While large cap stocks began to do better after September 11th, traditionally small caps, and especially the growth sector of small cap, have done quite well after the end of recessions. In summary, it would be healthy for the stock market to take a pause. We are more price sensitive but the investing environment still looks quite positive for equities. We are a little more cautious on bonds, believing that eleven rate cuts by the Fed and a very steep yield curve have priced a lot of good news into bond prices. That said, corporate bonds and certain segments of the mortgage market still hold appeal due to the wide yield advantage over Treasury bonds. Thank you for your loyalty and confidence in the STI Classic Funds. Sincerely, /s/Douglas S. Phillips Douglas S. Phillips, CFA Chief Investment Officer 1 STATEMENT OF NET ASSETS - -------------------------------------------------------------------------------- STI CLASSIC FUNDS NOVEMBER 30, 2001 CLASSIC INSTITUTIONAL CASH MANAGEMENT MONEY MARKET FUND - -------------------------------------------------------------------------------- FACE AMOUNT (000) VALUE (000) - -------------------------------------------------------------------------------- U.S. GOVERNMENT AGENCY OBLIGATIONS (30.5%) FFCB (B) 2.405%, 05/28/02 $140,000 $ 140,000 FHLB (D) 2.500%, 12/05/02 50,000 50,000 2.500%, 12/12/02 100,000 100,000 FHLB, Ser DV02 (B) 2.105%, 11/27/02 100,000 100,000 FHLMC Discount Note (C) 3.590%, 04/25/02 100,000 98,554 3.411%, 05/03/02 50,000 49,292 3.428%, 06/24/02 50,000 49,052 FNMA (B) 2.360%, 02/12/02 55,000 55,000 2.255%, 07/24/02 130,000 130,000 FNMA Discount Note (C) 3.506%, 08/23/02 75,000 73,128 2.120%, 10/18/02 100,000 98,110 SLMA, MTN (B) 2.395%, 05/08/02 100,000 99,975 ---------- Total U.S. Government Agency Obligations (Cost $1,043,111) 1,043,111 ---------- CORPORATE OBLIGATIONS (21.7%) BANKS (6.9%) First Tennessee Bank (B) 2.215%, 01/29/02 75,000 75,000 2.515%, 05/20/02 40,000 40,000 Key Bank (B) 2.310%, 01/07/02 60,000 60,006 National City Bank (B) 2.455%, 05/21/02 60,000 60,000 ---------- 235,006 ---------- CONSUMER STAPLES (1.2%) Philip Morris (A) (B) 3.713%, 12/04/01 40,000 40,000 ---------- - -------------------------------------------------------------------------------- FACE AMOUNT (000) VALUE (000) - -------------------------------------------------------------------------------- FINANCE (6.4%) Dorada Finance, MTN (B) 2.235%, 11/15/02 $ 75,000 $ 75,000 General Motors Acceptance 6.375%, 12/01/01 12,000 12,000 General Motors Acceptance, MTN (B) 2.530%, 01/15/02 23,000 23,000 Sigma Finance, MTN (B) 2.220%, 04/10/02 35,000 35,000 2.505%, 05/28/02 25,000 25,000 2.405%, 07/09/02 50,000 50,000 ---------- 220,000 ---------- INVESTMENT BANKERS/BROKER DEALERS (3.3%) Bear Stearns, MTN (B) 2.505%, 06/11/02 50,000 50,000 Goldman Sachs, MTN (B) 2.390%, 05/01/02 65,000 65,039 ---------- 115,039 ---------- SPECIAL PURPOSE ENTITY (3.9%) Assisted Living Funding, Ser 1999 (B) 2.350%, 09/01/19 23,170 23,170 Beta Finance, MTN 3.650%, 09/10/02 35,000 35,000 Beta Finance, MTN (B) 2.565%, 05/03/02 35,000 35,000 2.405%, 07/15/02 40,000 40,000 ---------- 133,170 ---------- Total Corporate Obligations (Cost $743,215) 743,215 ---------- TAXABLE MUNICIPAL BONDS (7.1%) Alaska State, Housing Finance Agency, Ser C, RB, MBIA (B) 2.160%, 12/01/32 49,000 49,000 2 - -------------------------------------------------------------------------------- (UNAUDITED) - -------------------------------------------------------------------------------- FACE AMOUNT (000) VALUE (000) - -------------------------------------------------------------------------------- TAXABLE MUNICIPAL BONDS--CONTINUED California State, Housing Finance Agency, Home Mortgage, Ser H, RB, FSA Callable 12/05/01 @ 100 (B) 2.150%, 02/01/17 $ 65,600 $ 65,600 California State, Housing Finance Agency, Home Mortgage, Ser H, RB, MBIA (B) 2.130%, 08/01/19 23,400 23,400 California State, Housing Finance Agency, Home Mortgage, Ser P, RB, FSA Callable 12/05/01 @ 100 (B) 2.170%, 08/01/29 36,500 36,500 New York City, Multi-Family Housing Development Authority, West 26th St. Development Project, Ser A, RB Callable 12/04/01 @ 100 (B) 2.170%, 06/01/33 22,755 22,755 Newport News, Virginia, Economic Development Authority, Shipbuilding Project, Ser A, RB Callable 01/02/02 @ 100 (B) 2.350%, 07/01/31 4,960 4,960 Newport News, Virginia, Economic Development Authority, Shipbuilding Project, Ser B, RB Callable 01/02/02 @ 100 (B) 2.300%, 07/01/31 26,775 26,775 Pittsburgh & Allegheny Counties, Pennsylvania, Sports & Exhibit Authority, RB, AMBAC (B) 2.344%, 07/01/30 14,720 14,720 ---------- Total Taxable Municipal Bonds (Cost $243,710) 243,710 ---------- - -------------------------------------------------------------------------------- FACE AMOUNT (000) VALUE (000) - -------------------------------------------------------------------------------- COMMERCIAL PAPER (11.9%) CONSUMER CYCLICALS (0.4%) Walt Disney 3.750%, 02/25/02 $ 15,000 $ 14,865 ---------- FINANCE (6.3%) General Electric Capital 2.440%, 12/31/01 75,000 74,847 3.670%, 02/11/02 25,000 24,817 Starfish Global Asset 2.200%, 12/12/01 100,000 99,933 2.200%, 12/13/01 15,000 14,989 ---------- 214,586 ---------- INVESTMENT BANKERS/BROKER DEALERS (5.2%) Credit Suisse First Boston 3.540%, 01/28/02 40,000 39,772 Goldman Sachs Group 3.710%, 02/04/02 35,000 34,766 Morgan Stanley Dean Witter (B) 2.210%, 12/07/01 30,000 30,000 UBS Paine Webber 3.730%, 03/08/02 75,000 74,246 ---------- 178,784 ---------- Total Commercial Paper (Cost $408,235) 408,235 ---------- CERTIFICATE OF DEPOSIT (2.6%) Marshall & Ilsley Bank (D) 6.150%, 12/02/02 85,000 87,800 ---------- Total Certificate of Deposit (Cost $87,800) 87,800 ---------- 3 STATEMENT OF NET ASSETS - -------------------------------------------------------------------------------- STI CLASSIC FUNDS NOVEMBER 30, 2001 CLASSIC INSTITUTIONAL CASH MANAGEMENT MONEY MARKET FUND--CONCLUDED - -------------------------------------------------------------------------------- SHARES/FACE AMOUNT (000) VALUE (000) - -------------------------------------------------------------------------------- CASH EQUIVALENTS (9.1%) AIM Liquid Assets Fund 155,000,000 $ 155,000 SEI Daily Income Trust Prime Obligation Fund, Cl A 155,000,000 155,000 ---------- Total Cash Equivalents (Cost $310,000) 310,000 ---------- REPURCHASE AGREEMENTS (24.0%) ABN Amro 2.090% dated 11/30/01, matures 12/03/01, repurchase price $242,672,057 (collateralized by U.S. Government obligations: total market value $247,482,974) (E) $242,630 242,630 Barclays Capital 2.090% dated 11/30/01, matures 12/03/01, repurchase price $32,862,210 (collateralized by U.S. Government obligations: total market value $33,516,618) (E) 32,856 32,856 Deutsche Bank 2.090% dated 11/30/01, matures 12/03/01, repurchase price $71,798,020 (collateralized by U.S. Government obligations: total market value $73,221,228) (E) 71,786 71,786 Greenwich Capital 2.090% dated 11/30/01, matures 12/03/01, repurchase price $73,036,845 (collateralized by U.S. Government obligations: total market value $74,485,185) (E) 73,024 73,024 Merrill Lynch 2.090% dated 11/30/01, matures 12/03/01, repurchase price $251,472,943 (collateralized by U.S. Government obligations: total market value $256,458,570) (E) 251,429 251,429 - -------------------------------------------------------------------------------- FACE AMOUNT (000) VALUE (000) - -------------------------------------------------------------------------------- REPURCHASE AGREEMENTS--CONTINUED Salomon Smith Barney 2.090% dated 11/30/01, matures 12/03/01, repurchase price $104,248,361 (collateralized by U.S. Government obligations: total market value $106,861,176) (E) $104,230 $ 104,230 UBS Warburg 2.090% dated 11/30/01, matures 12/03/01, repurchase price $44,813,186 (collateralized by U.S. Government obligations: total market value $45,704,063) (E) 44,805 44,805 ---------- Total Repurchase Agreements (Cost $820,760) 820,760 ---------- Total Investments (106.9%) (Cost $3,656,831) 3,656,831 ---------- OTHER ASSETS AND LIABILITIES, NET (-6.9%) Securities Purchased Payable (239,377) Other Assets and Liabilities, Net 4,390 ---------- Total Other Assets and Liabilities (234,987) ---------- NET ASSETS: Fund shares of the Institutional Shares (unlimited authorization -- no par value) based on 3,421,843,574 outstanding shares of beneficial interest 3,421,844 ---------- Total Net Assets (100.0%) $3,421,844 ========== Net Asset Value, Offering and Redemption Price Per Share -- Institutional Shares $1.00 ========== THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS. FOR DESCRIPTIONS OF ABBREVIATIONS, PLEASE SEE PAGE 9. 4 - ------------------------------------------------------------------------------- (UNAUDITED) CLASSIC INSTITUTIONAL U.S. GOVERNMENT SECURITIES MONEY MARKET FUND - ------------------------------------------------------------------------------- FACE AMOUNT (000) VALUE (000) - ------------------------------------------------------------------------------- U.S. GOVERNMENT AGENCY OBLIGATIONS (50.3%) FFCB (B) 2.395%, 05/16/02 $ 50,000 $ 49,999 2.405%, 05/28/02 20,000 20,000 FHLB (D) 2.500%, 12/05/02 to 12/12/02 75,000 75,000 FHLB, Ser 5302 (B) 2.255%, 07/11/02 25,000 25,000 FHLB, Ser AG02 2.620%, 10/11/02 20,000 20,000 FHLB, Ser DV02 (B) 2.105%, 11/27/02 50,000 50,000 FHLB, Ser J402 (B) 2.375%, 02/14/02 25,000 25,000 FHLMC Discount Note (C) 3.421%, 06/03/02 30,000 29,489 3.462%, 07/18/02 25,000 24,466 FHLMC Discount Note, Ser RB (C) 2.237%, 11/07/02 15,000 14,689 FNMA (B) 2.360%, 02/12/02 35,000 35,000 2.090%, 05/13/02 20,000 20,000 2.255%, 07/24/02 30,000 30,000 FNMA Discount Note (C) 3.810%, 02/22/02 15,000 14,872 4.024%, 03/05/02 20,000 19,796 3.686%, 04/05/02 25,000 24,689 3.690%, 04/16/02 25,000 24,662 2.161%, 10/18/02 25,000 24,528 SLMA, MTN (B) 2.395%, 05/08/02 30,000 29,992 ---------- Total U.S. Government Agency Obligations (Cost $557,182) 557,182 ---------- - -------------------------------------------------------------------------------- SHARES/FACE AMOUNT (000) VALUE (000) - -------------------------------------------------------------------------------- CASH EQUIVALENTS (8.1%) Financial Square Government Portfolio 45,000,000 $ 45,000 SEI Daily Income Trust Government Fund, Cl A 45,000,000 45,000 --------- Total Cash Equivalents (Cost $90,000) 90,000 --------- REPURCHASE AGREEMENTS (48.4%) JP Morgan Chase 2.095% dated 11/30/01, matures 12/03/01, repurchase price $162,708,734 (collateralized by U.S. Government obligations: total market value $167,562,784) (E) $162,680 162,680 Lehman Brothers 2.035% dated 11/30/01, matures 12/03/01, repurchase price $38,097,182 (collateralized by U.S. Government obligations: total market value $38,854,166) (E) 38,091 38,091 Merrill Lynch 2.085% dated 11/30/01, matures 12/03/01, repurchase price $50,235,529 (collateralized by U.S. Government obligations: total market value $51,234,134) (E) 50,227 50,227 Salomon Smith Barney 2.075% dated 11/30/01, matures 12/03/01, repurchase price $50,663,320 (collateralized by U.S. Government obligations: total market value $56,742,758) 50,654 50,654 (E) 5 - ------------------------------------------------------------------------------- STATEMENT OF NET ASSETS - ------------------------------------------------------------------------------- STI CLASSIC FUNDS NOVEMBER 30, 2001 CLASSIC INSTITUTIONAL U.S. GOVERNMENT SECURITIES MONEY MARKET FUND--CONCLUDED - ------------------------------------------------------------------------------- FACE AMOUNT (000) VALUE (000) - ------------------------------------------------------------------------------- REPURCHASE AGREEMENTS--CONTINUED UBS Warburg 2.125% dated 11/30/01, matures 12/03/01, repurchase price $235,325,748 (collateralized by U.S. Government obligations: total market value $239,990,009) (E) $ 235,284 $ 235,284 ---------- Total Repurchase Agreements (Cost $536,936) 536,936 ---------- Total Investments (106.8%) (Cost $1,184,118) 1,184,118 ---------- OTHER ASSETS AND LIABILITIES, NET (-6.8%) Securities Purchased Payable (75,870) Other Assets and Liabilities, Net 53 ---------- Total Other Assets and Liabilities (75,817) ---------- NET ASSETS: Fund shares of the Institutional Shares (unlimited authorization -- no par value) based on 1,108,253,293 outstanding shares of beneficial interest 1,108,253 Accumulated net realized gain on investments 48 ---------- Total Net Assets (100.0%) $1,108,301 ========== Net Asset Value, Offering and Redemption Price Per Share -- Institutional Shares $1.00 ========== THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS. FOR DESCRIPTIONS OF ABBREVIATIONS, PLEASE SEE PAGE 9. 6 - -------------------------------------------------------------------------------- (UNAUDITED) CLASSIC INSTITUTIONAL U.S. TREASURY SECURITIES MONEY MARKET FUND - ------------------------------------------------------------------------------- SHARES/FACE AMOUNT (000) VALUE (000) - ------------------------------------------------------------------------------- U.S. TREASURY OBLIGATIONS (12.7%) U.S. Treasury Notes 6.625%, 05/31/02 $ 25,000 $ 25,307 5.625%, 11/30/02 250,000 258,115 ---------- Total U.S. Treasury Obligations (Cost $283,422) 283,422 ---------- CASH EQUIVALENTS (9.0%) AIM Institutional Treasury Fund 120,000,000 120,000 Dreyfus Treasury Cash Management, Institutional Shares 70,000,000 70,000 Dreyfus Treasury Prime Cash Management, Institutional Shares 10,000,000 10,000 ---------- Total Cash Equivalents (Cost $200,000) 200,000 ---------- REPURCHASE AGREEMENTS (78.5%) ABN Amro 2.005% dated 11/30/01, matures 12/03/01, repurchase price $100,022,265 (collateralized by U.S. Government obligations: total market value $102,006,775) 100,006 100,006 (E) Deutsche Bank 2.075% dated 11/30/01, matures 12/03/01, repurchase price $100,028,627 (collateralized by U.S. Government obligations: total market value $102,011,641) 100,011 100,011 (E) - -------------------------------------------------------------------------------- FACE AMOUNT (000) VALUE (000) - -------------------------------------------------------------------------------- REPURCHASE AGREEMENTS--CONTINUED Dresdner Bank 2.005% dated 11/30/01, matures 12/03/01, repurchase price $77,810,615 (collateralized by U.S. Government obligations: total market value $79,357,724) (E) $ 77,798 $ 77,798 JP Morgan Chase 2.055% dated 11/30/01, matures 12/03/01, repurchase price $538,817,239 (collateralized by U.S. Government obligations: total market value $549,501,995) (E) 538,725 538,725 Lehman Brothers 2.015% dated 11/30/01, matures 12/03/01, repurchase price $91,901,097 (collateralized by U.S. Government obligations: total market value $93,725,025) (E) 91,886 91,886 Merrill Lynch 2.055% dated 11/30/01, matures 12/03/01, repurchase price $105,853,580 (collateralized by U.S. Government obligations: total market value $107,953,168) (E) 105,836 105,836 Paribas 2.055% dated 11/30/01, matures 12/03/01, repurchase price $105,035,268 (collateralized by U.S. Government obligations: total market value $107,100,926) (E) 105,017 105,017 Salomon Smith Barney 2.035% dated 11/30/01, matures 12/03/01, repurchase price $105,315,278 (collateralized by U.S. Government obligations: total market value $107,463,042) (E) 105,297 105,297 7 STATEMENT OF NET ASSETS - -------------------------------------------------------------------------------- STI CLASSIC FUNDS NOVEMBER 30, 2001 (UNAUDITED) CLASSIC INSTITUTIONAL U.S. TREASURY SECURITIES MONEY MARKET FUND--CONCLUDED - -------------------------------------------------------------------------------- FACE AMOUNT (000) VALUE (000) - -------------------------------------------------------------------------------- REPURCHASE AGREEMENTS--CONTINUED UBS Warburg 2.065% dated 11/30/01, matures 12/03/01, repurchase price $527,884,179 (collateralized by U.S. Government obligations: total market value $538,349,276) (E) $527,793 $ 527,793 ---------- Total Repurchase Agreements (Cost $1,752,369) 1,752,369 ---------- Total Investments (100.2%) (Cost $2,235,791) 2,235,791 ---------- OTHER ASSETS AND LIABILITIES, NET (-0.2%) (3,611) ---------- NET ASSETS: Fund shares of the Institutional Shares (unlimited authorization -- no par value) based on 526,682,294 outstanding shares of beneficial interest 526,682 Fund shares of the Corporate Trust Shares (unlimited authorization -- no par value) based on 1,704,689,725 outstanding shares of beneficial interest 1,704,690 Undistributed net investment income 3 Accumulated net realized gain on investments 805 ---------- Total Net Assets (100.0%) $2,232,180 ========== Net Asset Value, Offering and Redemption Price Per Share -- Institutional Shares $1.00 ========== Net Asset Value, Offering and Redemption Price Per Share -- Corporate Trust Shares $1.00 ========== THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS. FOR DESCRIPTIONS OF ABBREVIATIONS, PLEASE SEE PAGE 9. 8 - ------------------------------------------------------------------------------- KEY TO ABBREVIATIONS USED IN THE STATEMENTS OF NET ASSETS AMBAC Security insured by the American Municipal Bond Assurance Corporation Cl Class FFCB Federal Farm Credit Bank FHLB Federal Home Loan Bank FHLMC Federal Home Loan Mortgage Corporation FNMA Federal National Mortgage Association FSA Security insured by Financial Security Assurance MBIA Security insured by the Municipal Bond Insurance Association MTN Medium Term Note RB Revenue Bond Ser Series SLMA Student Loan Marketing Association (A) Private Placement Security (B) Adjustable Rate Security. The rate reported on the Statement of Net Assets is the rate in effect on November 30, 2001. (C) Rate shown is the effective yield at the date of purchase. (D) Security purchased on a when-issued basis (E) Tri-Party Repurchase Agreement 9 This page intentionally left blank.
STATEMENTS OF OPERATIONS (000) - ------------------------------------------------------------------------------------------------------------------------ STI CLASSIC FUNDS FOR THE SIX MONTH PERIOD ENDED NOVEMBER 30, 2001 (UNAUDITED) CLASSIC CLASSIC CLASSIC INSTITUTIONAL INSTITUTIONAL INSTITUTIONAL CASH MANAGEMENT U.S. GOVERNMENT U.S. TREASURY MONEY MARKET SECURITIES MONEY SECURITIES MONEY FUND MARKET FUND MARKET FUND ---------------- ---------------- ---------------- 06/01/01- 06/01/01- 06/01/01- 11/30/01 11/30/01 11/30/01 -------- ---------- ---------- Income: Interest Income $58,309 $15,584 $37,829 ------- ------- ------- Expenses: Investment Advisory Fees .................................... 3,281 889 2,355 Administrator Fees .......................................... 1,139 308 818 Transfer Agent Fees - Institutional Shares ................. 8 8 8 Transfer Agent Fees - Corporate Trust Shares ................ -- -- 8 Transfer Agent Out of Pocket Expenses ....................... 85 23 62 Printing Fees ............................................... 82 22 59 Custody Fees ................................................ 41 11 30 Professional Fees ........................................... 66 18 47 Trustee Fees ................................................ 17 5 12 Registration Fees ........................................... 110 43 106 Shareholder Service Fees - Corporate Trust Shares ........... -- -- 1,854 Insurance and Other Fees .................................... 3 6 17 ------- ------- ------- Total Expenses .............................................. 4,832 1,333 5,376 ------- ------- ------- Less: Investment Advisory Fees Waived (443) (39) (165) Administrator Fees Waived ........................... (328) (89) (236) ------- ------- ------- Net Expenses ............................................... 4,061 1,205 4,975 ------- ------- ------- Net Investment Income .......................................... 54,248 14,379 32,854 ------- ------- ------- Net Realized Gain on Securities Sold ........................... -- -- 816 ------- ------- ------- Increase in Net Assets Resulting from Operations ............... $54,248 $14,379 $33,670 ======= ======= ======= Amounts designated as "--" are either $0 or round to $0. THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.
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STATEMENTS OF CHANGES IN NET ASSETS (000) - ------------------------------------------------------------------------------------------------------------------------------------ STI CLASSIC FUNDS FOR THE PERIOD ENDED NOVEMBER 30, 2001 (UNAUDITED) AND THE YEAR ENDED MAY 31, 2001 CLASSIC CLASSIC CLASSIC INSTITUTIONAL INSTITUTIONAL INSTITUTIONAL CASH MANAGEMENT U.S. GOVERNMENT U.S. TREASURY MONEY MARKET SECURITIES MONEY SECURITIES MONEY FUND MARKET FUND MARKET FUND -------------------------- -------------------------- --------------------------- 06/01/01- 06/01/00 - 06/01/01 - 06/01/00 - 06/01/01 - 06/01/00 - 11/30/01 05/31/01 11/30/01 05/31/01 11/30/01 05/31/01 ---------- ----------- ----------- ----------- ----------- ----------- Operations: Net Investment Income ............ $ 54,248 $ 156,056 $ 14,379 $ 43,930 $ 32,854 $ 90,099 Net Realized Gain (Loss) on Investments ............... -- (1) -- 73 816 (8) ---------- ---------- ---------- -------- ---------- ---------- Increase in Net Assets from Operations .............. 54,248 156,055 14,379 44,003 33,670 90,091 ---------- ---------- ---------- -------- ---------- ---------- Distributions to Shareholders: Net Investment Income: Institutional Shares ........... (54,248) (155,491) (14,379) (43,930) (7,360) (21,487) Corporate Trust Shares ......... -- -- -- -- (25,494) (68,648) ---------- ---------- ---------- -------- ---------- ---------- Total Distributions .............. (54,248) (155,491) (14,379) (43,930) (32,854) (90,135) ---------- ---------- ---------- -------- ---------- ---------- Capital Transactions (1): Institutional Shares: Proceeds from Shares Issued ................ 3,460,102 7,960,103 1,694,881 2,104,691 1,166,450 2,215,790 Reinvestments of Cash Distributions ........... 37,325 109,209 4,905 12,179 4,799 19,897 Cost of Shares Repurchased ..... (3,304,983) (7,152,161) (1,487,674) (1,871,380) (1,224,782) (1,985,171) ---------- ---------- ---------- -------- ---------- ---------- Increase (Decrease) in Net Assets from Institutional Share Transactions ................... 192,444 917,151 212,112 245,490 (53,533) 250,516 ---------- ---------- ---------- -------- ---------- ---------- Corporate Trust Shares: Proceeds from Shares Issued ................ -- -- -- -- 2,200,630 2,678,255 Cost of Shares Repurchased ..... -- -- -- -- (1,799,590) (2,513,136) ---------- ---------- ---------- -------- ---------- ---------- Increase in Net Assets from Corporate Trust Share Transactions ................... -- -- -- -- 401,040 165,119 ---------- ---------- ---------- -------- ---------- ---------- Increase in Net Assets from Share Transactions ........ 192,444 917,151 212,112 245,490 347,507 415,635 ---------- ---------- ---------- -------- ---------- ---------- Total Increase in Net Assets ............... 192,444 917,715 212,112 245,563 348,323 415,591 ---------- ---------- ---------- -------- ---------- ---------- Net Assets: Beginning of Period ............ 3,229,400 2,311,685 896,189 650,626 1,883,857 1,468,266 ---------- ---------- ---------- -------- ---------- ---------- End of Period .................. $3,421,844 $3,229,400 $1,108,301 $896,189 $2,232,180 $1,883,857 ========== ========== ========== ======== ========== ========== Amounts designated as "--" are either $0 or round to $0.
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- ------------------------------------------------------------------------------------------------------------------------------------ CLASSIC CLASSIC CLASSIC INSTITUTIONAL INSTITUTIONAL INSTITUTIONAL CASH MANAGEMENT U.S. GOVERNMENT U.S. TREASURY MONEY MARKET SECURITIES MONEY SECURITIES MONEY FUND MARKET FUND MARKET FUND ------------------------ ------------------------- ------------------------ 06/01/01- 06/01/00- 06/01/01- 06/01/00- 06/01/01- 06/01/00- 11/30/01 05/31/01 11/30/01 05/31/01 11/30/01 05/31/01 ---------- ---------- ---------- ---------- ---------- ---------- (1) Shares Issued and Redeemed: Institutional Shares: Shares Issued ............ 3,460,102 7,960,103 1,694,881 2,104,691 1,166,450 2,215,790 Shares Issued in Lieu of Cash Distributions .. 37,325 109,209 4,905 12,179 4,799 19,897 Shares Redeemed .......... (3,304,983) (7,152,161) (1,487,674) (1,871,380) (1,224,782) (1,985,171) ---------- ---------- ---------- ---------- ---------- ---------- Net Institutional Share Transactions ........ 192,444 917,151 212,112 245,490 (53,533) 250,516 ---------- ---------- ---------- ---------- ---------- ---------- Corporate Trust Shares: Shares Issued ............ -- -- -- -- 2,200,630 2,678,255 Shares Redeemed .......... -- -- -- -- (1,799,590) (2,513,136) ---------- ---------- ---------- ---------- ---------- ---------- Net Corporate Trust Share Transactions ....... -- -- -- -- 401,040 165,119 ---------- ---------- ---------- ---------- ---------- ---------- Net Change in Capital Shares ................... 192,444 917,151 212,112 245,490 347,507 415,635 ========== ========== ========== ========== ========== ==========
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS. 13
FINANCIAL HIGHLIGHTS - ------------------------------------------------------------------------------------------------------------------------ STI CLASSIC FUNDS FOR THE PERIOD ENDED NOVEMBER 30, 2001 (UNAUDITED) AND THE YEARS ENDED MAY 31, (UNLESS OTHERWISE INDICATED) FOR A SHARE OUTSTANDING THROUGHOUT THE PERIOD NET NET ASSET NET ASSET VALUE INVESTMENT DISTRIBUTIONS FROM VALUE END TOTAL BEGINNING OF PERIOD INCOME NET INVESTMENT INCOME OF PERIOD RETURN+ ------------------- ---------- --------------------- ------------ --------- CLASSIC INSTITUTIONAL CASH MANAGEMENT MONEY MARKET FUND (A) Institutional Shares 2001* $1.00 $0.02 $(0.02) $1.00 1.67% 2001 1.00 0.06 (0.06) 1.00 6.13 2000 1.00 0.05 (0.05) 1.00 5.56 1999** 1.00 0.02 (0.02) 1.00 1.58 For the years ended January 31: 1999 1.00 0.05 (0.05) 1.00 5.46 1998 1.00 0.06 (0.06) 1.00 5.66 1997 1.00 0.05 (0.05) 1.00 5.45 CLASSIC INSTITUTIONAL U.S. GOVERNMENT SECURITIES MONEY MARKET FUND (B) Institutional Shares 2001* $1.00 $0.02 $(0.02) $1.00 1.65% 2001 1.00 0.06 (0.06) 1.00 5.98 2000 1.00 0.05 (0.05) 1.00 5.39 1999** 1.00 0.02 (0.02) 1.00 1.56 For the years ended January 31: 1999 1.00 0.05 (0.05) 1.00 5.30 1998 1.00 0.05 (0.05) 1.00 5.52 1997 1.00 0.05 (0.05) 1.00 5.29 CLASSIC INSTITUTIONAL U.S. TREASURY SECURITIES MONEY MARKET FUND Institutional Shares 2001* $1.00 $0.01 $(0.01) $1.00 1.47% 2001 1.00 0.06 (0.06) 1.00 5.74 2000 1.00 0.05 (0.05) 1.00 5.25 1999 1.00 0.05 (0.05) 1.00 4.97 1998 1.00 0.05 (0.05) 1.00 5.50 1997(C) 1.00 0.02 (0.02) 1.00 2.46 Corporate Trust Shares 2001* $1.00 $0.01 $(0.01) $1.00 1.37% 2001 1.00 0.05 (0.05) 1.00 5.53 2000 (D) 1.00 0.05 (0.05) 1.00 5.02 + Returns are for the period indicated and have not been annualized. The performance in the above table does not reflect the deduction of taxes the shareholder would pay on fund distributions or redemption of fund shares. * For the six month period ended November 30, 2001. All ratios for the period have been annualized. ** For the period February 1, 1999 to May 31, 1999. All ratios for the period have been annualized. (A) On May 17, 1999, the Arbor Prime Obligations Fund exchanged all of its assets and certain liabilities for shares of the Classic Institutional Cash Management Money Market Fund. The Arbor Prime Obligations Fund is the accounting survivor in this transaction, and as a result, its basis of accounting for assets and liabilities and its operating results for the periods prior to May 17, 1999 have been carried forward in these financial highlights.
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- ------------------------------------------------------------------------------------------------------------------------------------ RATIO OF RATIO OF NET INVESTMENT RATIO OF EXPENSES TO INCOME TO NET ASSETS RATIO OF NET INVESTMENT AVERAGE NET ASSETS AVERAGE NET ASSETS END OF EXPENSES TO INCOME TO (EXCLUDING WAIVERS (EXCLUDING WAIVERS PERIOD (000) AVERAGE NET ASSETS AVERAGE NET ASSETS AND REIMBURSEMENTS) AND REIMBURSEMENTS) ------------ ------------------ ------------------ ------------------ ------------------ CLASSIC INSTITUTIONAL CASH MANAGEMENT MONEY MARKET FUND (A) Institutional Shares 2001* $3,421,844 0.25% 3.31% 0.30% 3.26% 2001 3,229,400 0.25 5.91 0.30 5.86 2000 2,311,685 0.25 5.42 0.30 5.37 1999** 1,888,483 0.25 4.79 0.35 4.69 For the years ended January 31: 1999 884,490 0.23 5.31 0.35 5.19 1998 740,837 0.20 5.52 0.36 5.36 1997 477,435 0.20 5.33 0.38 5.15 CLASSIC INSTITUTIONAL U.S. GOVERNMENT SECURITIES MONEY MARKET FUND (B) Institutional Shares 2001* $1,108,301 0.27% 3.24% 0.30% 3.21% 2001 896,189 0.26 5.72 0.29 5.69 2000 650,626 0.25 5.27 0.29 5.23 1999** 617,089 0.25 4.73 0.36 4.62 For the years ended January 31: 1999 688,031 0.23 5.18% 0.36% 5.05 1998 789,410 0.20 5.39 0.37 5.22 1997 586,731 0.20 5.17 0.37 5.00 CLASSIC INSTITUTIONAL U.S. TREASURY SECURITIES MONEY MARKET FUND Institutional Shares 2001* $ 526,881 0.27% 2.93% 0.30% 2.90% 2001 580,227 0.27 5.44 0.30 5.41 2000 329,725 0.25 5.17 0.31 5.11 1999 283,525 0.20 4.83 0.47 4.56 1998 140,334 0.18 5.34 0.38 5.14 1997(C) 20,238 0.09 5.27 0.51 4.85 Corporate Trust Shares 2001* $1,705,299 0.47% 2.75% 0.50% 2.72% 2001 1,308,630 0.46 5.38 0.50 5.34 2000 (D) 1,138,541 0.45 4.93 0.49 4.89 (B) On May 24, 1999, the Arbor U.S. Government Securities Money Fund exchanged all of its assets and certain liabilities for shares of the Classic Institutional U.S. Government Securities Money Market Fund. The Arbor U.S. Government Securities Money Fund is the accounting survivor in this transaction, and as a result, its basis of accounting for assets and liabilities and its operating results for the periods prior to May 24, 1999 have been carried forward in these financial highlights. (C) Commenced operations on December 12, 1996. All ratios for the period have been annualized. (D) Commenced operations on June 3, 1999. All ratios for the period have been annualized.
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS. 15 NOTES TO FINANCIAL STATEMENTS - -------------------------------------------------------------------------------- STI CLASSIC FUNDS NOVEMBER 30, 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-seven funds as of November 30, 2001: the Balanced Fund, the Capital Appreciation Fund, the Growth and Income Fund, the Information and Technology Fund (formerly the E-Commerce Opportunity 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 Mid Cap Value 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, the Vantage Fund, (collectively the "Equity Funds"), the Florida Tax-Exempt Bond Fund, the Georgia Tax-Exempt Bond Fund, the High Income Fund, the Investment Grade Bond Fund, the Investment Grade Tax-Exempt Bond Fund, the Limited-Term Federal Mortgage Securities Fund, the Maryland Municipal Bond Fund, the Short-Term Bond Fund, the Short-Term U.S. Treasury Securities Fund, the Strategic Income 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" or the "Funds"). The assets of each Fund are segregated, and a shareholder's interest is limited to the fund in which shares are held. Each Fund's prospectus provides a description of the Fund's investment objectives, policies and strategies. The financial statements presented herein are those of the Institutional Money Market Funds. The financial statements of the Equity Funds, the Fixed Income Funds and the Retail Money Market Funds are not presented herein, but are presented separately. 2. Significant Accounting Policies: The following is a summary of significant accounting policies followed by the Trust: SECURITY VALUATION -- Investment securities held by the Funds are stated at amortized cost, which approximates market value. FEDERAL INCOME TAXES -- It is each Fund's intention to 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). Interest income is recognized on an accrual basis. Costs used in determining net realized gains and losses on the sales of investment securities are those of the specific securities sold adjusted for the accretion and amortization of purchase discounts and premiums during the respective holding period. Purchase discounts and premiums on securities held by the Funds are accreted and amortized ratably to maturity and are included in interest income. 16 - -------------------------------------------------------------------------------- (UNAUDITED) 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. SECURITIES PURCHASED ON A WHEN-ISSUED BASIS -- Delivery and payment for securities that have been purchased by a Fund on a forward commitment or when-issued basis can take place up to a month or more after the transaction date. During this period, such securities are subject to market fluctuations and the portfolio maintains, in a segregated account with its custodian, assets with a market value equal to or greater than the amount of its purchase commitments. The purchase of securities on a when-issued or forward commitment basis may increase the volatility of a Fund's net asset value if the Fund makes such investments while remaining substantially fully vested. OTHER -- Expenses that are directly related to a specific Fund are charged to that Fund. Class specific expenses are borne by that class. Other operating expenses of the Trust are pro-rated to the Funds on the basis of relative net assets. Fund expenses are pro-rated to the respective classes on the basis of relative net assets. DISTRIBUTIONS TO SHAREHOLDERS -- Distributions from net investment income of each of the Funds are declared on each business day and paid to shareholders on a monthly basis. Any net realized capital gains on sales of securities are distributed to shareholders at least annually. USE OF ESTIMATES-- The preparation of financial statements in conformity with accounting principles generally accepted in the United States requires management to make estimates and assumptions that affect 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. IMPLEMENTATION OF NEW ACCOUNTING STANDARDS -- The Funds implemented the provisions of the AICPA Audit and Accounting Guide, Audits of Investment Companies (the "Guide"), as required on June 1, 2001. The implementation did not have any material impact on the 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 SEIInvestments Mutual Funds Services ("the Administrator") and/or SEI Investments Distribution Co. (the "Distributor"). Such officers are paid no fees by the Trust for serving as officers of the Trust. The Trust and the Distributor are parties to a Distribution Agreement dated November 21, 1995. The Distributor does not receive any fees for its distribution services provided under this agreement. 17 NOTES TO FINANCIAL STATEMENTS (concluded) - ------------------------------------------------------------------------------- STI CLASSIC FUNDS NOVEMBER 30, 2001 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 $472,591 for the period ended November 30, 2001. The Trust has also entered into an agreement with SunTrust Robinson Humphrey, a division of SunTrust Capital Markets, Inc. which is a direct non-bank subsidiary of Sun Trust Banks, Inc. to act as an agent in placing repurchase agreements for the Trust. For its services SunTrust Robinson Humphrey received $550,684 for the period ended November 30, 2001. 4. Administration, Shareholder, and Transfer Agency Servicing Agreements: The Trust and the Administrator are parties to an Administration Agreement dated May 29, 1995, as amended November 19, 1997 and March 1, 1999, under which the Administrator provides administrative services for an annual fee (expressed as a percentage of the combined average daily net assets of the Trust and STI Classic Variable Trust) of: 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 Institutional U.S. Treasury Securities Money Market Fund has adopted a Shareholder Services Plan (the "Plan") for the Corporate Trust Shares. The Fund pays the Distributor a monthly shareholder services fee at an annual rate of 0.20% of the average daily net assets of the Fund's Corporate Trust Shares, which may be used by the Distributor to provide compensation to service providers that have agreed to provide shareholder support services for their customers who own Corporate Trust Shares of the Fund. The Trust and Federated Services Company are parties to a Transfer Agency servicing agreement dated May 14, 1994 under which Federated Services Company provides transfer agency services to the Trust. 5. Investment Advisory and Custodian Agreements: The Trust and Trusco Capital Management, Inc. (the "Investment Adviser") have entered into an advisory agreement dated June 15, 1993, and last amended as of November 30, 2001. Under terms of the respective agreements, the Funds are charged the following annual fees based upon average daily net assets: MAXIMUM ANNUAL ADVISORY FEE -------------- Classic Institutional Cash Management Money Market Fund 0.20% Classic Institutional U.S. Government Securities Money Market Fund 0.20% Classic Institutional U.S. Treasury Securities Money Market Fund 0.20% The Investment Adviser and the Administrator have voluntarily agreed to waive all or a portion of their fees (and to reimburse Funds' expenses) in order to limit operating expenses. Fee waivers and expense reimbursements are voluntary and may be terminated at any time. SunTrust Bank (the "Custodian") acts as custodian for the Funds. Fees of the Custodian are paid on the basis of the net assets of the Funds. The Custodian plays no role in determining the investment policies of the Trust or which securities are to be purchased or sold in the Funds. 18 - -------------------------------------------------------------------------------- (UNAUDITED) 6. Concentration of Credit Risk: The Classic Institutional Cash Management Money Market Fund invests in high quality money market instruments issued by corporations and the U.S. Government and rated by one or more nationally recognized statistical rating organizations, or, if not rated, are determined by the Investment Adviser to be of comparable quality. The Classic Institutional U.S. Government Securities Money Market Fund invests in U.S. Treasury obligations, U.S. Government subsidiary corporation securities which are backed by the full faith and credit of the U.S. Government and repurchase agreements with approved dealers collateralized by U.S. Treasury securities and U.S. Government subsidiary corporation securities. The Classic Institutional U.S. Treasury Securities Money Market Fund invests in U.S. Treasury Obligations, which are backed by the full faith and credit of the U.S. Government and repurchase agreements with approved dealers collateralized by U.S. Treasury securities. 19 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-SA-004-0200 -----END PRIVACY-ENHANCED MESSAGE-----