N-30D 1 sticlequityar5_02.txt STI CLASSIC EQUITY AR 5_31_02 ANNUAL ............................................................................... FINANCIAL REPORT ............................................................................... STI CLASSIC EQUITY FUNDS ............................................................................... A FAMILY OF MUTUAL FUNDS ............................................................................... May 31, 2002 [STI Logo Omitted] BACKED BY TRADITION. STRENGTHENED BY EXPERIENCE.SM Dear Valued STI Classic Funds' Shareholder: The twelve-month period ended May 31, 2002, corresponding to the fiscal year of the STI Classic Funds, was marked by several significant events. Most important was the September 11th Attack on America. The human toll of that tragedy was of course immeasurable. For the financial markets, the attack hastened an end to the recession, as the Federal Reserve lowered interest rates dramatically and provided huge amounts of liquidity. The shift in interest rates meant that longer-term bonds had very satisfactory returns, but the yield on money market funds plummeted. The equity markets initially sold off but then regained ground in a dramatic recovery as consumer spending remained largely intact. After high volatility in both bonds and stocks during Q4-2001, bond prices flattened out after the first of the year and equity prices saw another corrective phase. Thus it was a period of considerable fluctuation and uncertainty, in contrast to the generally benign environment from 1992-1999, which was the longest bull market for stocks in history. Investment returns in the financial markets were varied during this turbulent 12-month period. Even so, there were distinct opportunities to earn attractive returns. Moreover, investors who chose a balanced diversification strategy utilizing quality bonds and smaller cap stocks were able to come through the year with minimal damage. Illustrating this point, the bellwether equity indices were weak. For the 12 months ended May 31, the S&P 500 Composite Index, which tracks larger companies, declined -13.9% on a total return basis, while the Dow Jones Industrial Average fell -9.0%. The technology-laden NASDAQ was much worse, with a return of -23.4%. International stocks were not a haven either, as the Morgan Stanley EAFE Index declined -9.6%. Cash equivalents such as money market funds were more stable, but hardly lucrative given 12 month returns of the iMoneyNet Financial Money Funds Average of +2.1%. On the positive side, small cap stocks were exceptional as the S&P 600 Smallcap Index rose +9.6% and the S&P 400 Mid-cap Index was modestly positive at +2.4%. Longer maturity bonds did well as shown by the +7.8% return of the Lehman U.S. Government Credit Index. In general, value stocks did better, and small was better; the Russell 2000 Value Index was the best performing well recognized index with its +15.4% increase. Looking at the performance of the STI Classic Funds, it was a challenging year, but for the most part, very successful. In the Equity funds segment, our value oriented funds, which include the Value Income Stock Fund, the Growth and Income Fund and Small Cap Value Fund, all had excellent results. The Balanced Fund, which invests in a combination of growth equities and quality bonds, also had very good performance within its Lipper peer group. Our Small Cap Growth Stock Fund did extremely well within its peer group and small growth benchmarks. Finally, the large cap oriented Capital Appreciation and International Equity Funds were not immune to weakness but both exceeded their index benchmarks and did well versus peer group competitors. Another bright spot was the STI Classic municipal bond funds; they produced investment returns in a range of 5.2% to 5.6% and were strong in their peer categories; particularly notable was the Investment Grade Tax-Exempt Bond Fund. Less favorable results were posted by STI Classic taxable bond funds. Several of these funds have traditionally invested a meaningful portion of assets in investment-grade corporate bonds. This area of the bond market bore the brunt of the recession and numerous major issuers were stressed by the environment. Despite the setbacks encountered, investors in corporate debt have historically earned very attractive returns when undervalued holdings snap back strongly during economic recoveries. Thus, our bond managers remain positively committed to this strategy in the expectation of being amply rewarded over the next couple of years. Looking forward, the environment seems weighted with ominous uncertainty, but this has been the case in many prior cycles including the bear markets of 1973-74, 1980, 1987 and 1990-91. Investors seem most acutely concerned about additional terrorist events, corporate governance issues, and the quality of company profits. Obviously no period in investment history has been free of risk, and now is no different. That said, the fact that strong measures are being taken against both ideological terrorism and "corporate accounting terror" means the issues are out in the open, with the possibility of being less bad than worst-case fears. In last year's Annual Report, we warned against having overly optimistic expectations for stock returns, and suggested that a period of below-normal gains was likely in the aftermath of the 1990's boom. That process now seems well underway and the excesses have been significantly corrected with the bursting of the technology stock market bubble and the poor equity returns over the past year. The stock market at approximately 19X twelve-month forward estimated earnings looks reasonably valued. Worth remembering is that the ingredients for a stock market recovery are still in place: modest inflation, very low interest rates, an economy which is on a moderate growth recovery path, benign central bank monetary policy, and a cyclical rebound in corporate profits. Typically some event-unforeseeable now-sparks a return of investor confidence. Thus, we remain reasonably optimistic about the prospects for at least moderate gains from equities over the next year. We are more cautious on the prognosis for bonds. Bond investors face several challenges, including the possibility of a weaker U.S. dollar, incremental government spending on domestic and international security, the likelihood that inflation is already as good as it is going to get, and the impact of an economic rebound on liquidity and monetary policy. Thus, we have gone to a more neutral maturity structure in fixed income funds, while continuing to emphasize corporate and mortgage securities. Finally, with short term rates so low, money market funds seem the least attractive for investors who have a reasonable time horizon and no need for current liquidity. The investment advisor for the STI Classic Funds, Trusco Capital Management, has many years of proven success. Integral to Trusco's favorable long-term investment performance is adherence to disciplined investment processes, a dedication to independent internal research analysis, and a strong aversion to chasing Wall Street "fads." We thank you, the STI Classic shareholders, for continued confidence in the funds we manage on your behalf. 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 both current income and growth in capital by investing in a blend of investment grade bonds and large and midcap common stocks. Typically the Fund's asset allocation to bonds is 40% to 50% of the total portfolio, while common stocks are the balance, or 50% to 60% of assets. In this manner, the goal is to provide shareholders with an attractive and somewhat less volatile total investment return over longer time periods. Total return is defined as the current income from interest or dividends as well as changes in the value of assets held in the portfolio. For the fiscal year ended May 31, 2002, the major asset groups in which the Fund invests went in opposite directions. Fixed income markets responded to recessionary conditions, aggressive easing by the Federal Reserve, and from time-to-time, a "flight to quality". Thus indices representing intermediate and longer-term investment grade bonds generally produced respectable investment returns in a range of 6.5% to 8.0%. Stocks, on the other hand, were weak as Fed interest rate cuts failed to offset the negative impact of recession, very weak corporate profits, and considerable volatility particularly after September 11th. Thus the Fund's equity benchmark, the S&P 500 Composite Index, fell 13.9%. Despite these mixed trends, the Balanced Fund (Trust Shares) fared relatively well in preserving shareholder capital, with a modest negative return of only -3.3%. In comparison, a 60%/40% stock/bond blend of the Fund's two benchmarks, the S&P 500 Composite Index for stocks and the Lehman U.S. Government/Credit Index, was down -5.3% for the year ended May 31, 2002. Also, the Lipper Mutual Funds Balanced Objective showed an even greater decline of -5.9%. The STI Classic Balanced Fund (Trust Shares) outperformed 75% of its peers in this Lipper set of approximately 500 funds. The Fund's Trust shares has also outperformed almost two-thirds of its Lipper peers on three-years results and over three-fourths of peers on a five-year basis. The Fund's relative success during the past year was primarily due to good stock selection in the major equity sectors. In CONSUMER stocks, the Fund emphasized companies with proven business models and strong revenue growth, such as HARLEY-DAVIDSON, LOWE'S, and BED, BATH, BEYOND. In HEALTHCARE, the Fund focused on service providers such as UNITED HEALTHCARE and device companies like ST. JUDE MEDICAL while underweighting the large pharmaceuticals which tended to lag the market. In FINANCIAL SERVICES, the Fund's emphasis on predictable revenue streams and minimal credit risk paid off in names like SLM CORP., AMBAC, and FIFTH THIRD BANCORP. In INFORMATION TECHNOLOGY, there was a tilt toward recurring revenue areas such as software (MICROSOFT) and services (ELECTRONIC DATA SYSTEMS), although later in the year we began to shift toward the more operationally leveraged semiconductor sector. In terms of its bond investments, the Fund concentrated on intermediate maturity bonds, while focusing on the mortgage and corporate sectors where value was evident in terms of historical spreads vs. Treasuries. The corporate exposure was moderately detrimental during the year as the recession and "event risk" on specific issuers as well a short-term orientation by bond rating agencies produced volatility in bond prices. Going forward, the key strategies of the Fund remain intact. In equities, value added will typically be created through good bottoms-up stock selection and an emphasis on earnings growth. For the fixed income portfolio, the Fund generally avoids major bets on maturity structure, preferring to search for good value in sound credits in recognition that corporate bonds tend to have higher returns than Treasuries over the course of a full economic cycle. The Fund is well diversified across industries and issuers, but significant price moves in individual securities can have an impact on the overall Fund, despite the diversification. The Fund holds positions in fixed income instruments issued by WorldCom, Inc. (or affiliates) which revealed after the Fund's fiscal year-end that it had materially misrepresented the Company's financial condition. This revelation of fraud caused the prices of WorldCom securities to decline sharply, which we expect will have a negative impact, albeit modest, on the future performance of the Fund. The ultimate outcome of the situation remains highly uncertain; however we are monitoring it closely to determine the most appropriate investment strategy. /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, 2002) Annualized Cumulative Inception Inception One Year 3 Years 5 Years to Date to Date -3.29% 1.59% 7.29% 9.08% 107.62% [Chart Omitted] [Plot Points follow] 60/40 S&P 500 STI Classic S&P 500 Lehman U.S. Lehman U.S. Balanced Fund, Composite Government/ Government/ Trust Shares Index Credit Index Credit Index 1/31/94 10,000 10,000 10,000 10,000 5/94 9,554 9,579 9,579 9,446 5/95 10,387 11,510 11,121 10,543 5/96 12,180 14,781 13,142 10,975 5/97 14,210 19,126 15,844 11,842 5/98 17,357 24,992 19,474 13,202 5/99 19,263 30,253 22,323 13,738 5/00 20,230 33,424 23,946 13,997 5/01 20,885 29,898 23,620 15,799 5/02 20,198 25,757 22,361 17,037 INVESTOR SHARES AVERAGE ANNUAL TOTAL RETURNS (PERIODS ENDED MAY 31, 2002) Annualized Cumulative Inception Inception One Year 3 Years 5 Years to Date to Date -3.57% 1.27% 6.95% 8.70% 101.62% Without load -7.21% -0.01% 6.13% 8.20% 94.06% With load [Chart Omitted] [Plot Points follow] 60/40 S&P 500 STI Classic S&P 500 Lehman U.S. Lehman U.S. Balanced Fund, Composite Government/ Government/ Investor Shares Index Credit Index Credit Index 1/31/94 9,625 10,000 10,000 10,000 5/94 9,238 9,579 9,579 9,446 5/95 10,004 11,510 11,121 10,543 5/96 11,693 14,781 13,142 10,975 5/97 13,595 19,126 15,844 11,842 5/98 16,548 24,992 19,474 13,202 5/99 18,319 30,253 22,323 13,738 5/00 19,173 33,424 23,946 13,997 5/01 19,731 29,898 23,620 15,799 5/02 19,026 25,757 22,361 17,037 FLEX SHARES AVERAGE ANNUAL TOTAL RETURNS (PERIODS ENDED MAY 31, 2002) Annualized Cumulative Inception Inception One Year 3 Years 5 Years to Date to Date -4.33% 0.49% 6.14% 8.71% 78.82% Without load -6.18% With load [Chart Omitted] [Plot Points follow] 60/40 S&P 500 STI Classic S&P 500 Lehman U.S. Lehman U.S. Balanced Fund, Composite Government/ Government/ Flex Shares Index Credit Index Credit Index 6/30/95 10,000 10,000 10,000 10,000 5/31/96 11,401 12,549 10,327 11,617 5/31/97 13,157 16,239 11,143 14,006 5/31/98 15,900 21,219 12,422 17,215 5/31/99 17,465 25,686 12,927 19,733 5/31/00 18,142 28,378 13,171 21,168 5/31/01 18,525 25,384 14,866 20,880 5/31/02 17,723 21,868 16,032 19,767 Past performance is no indication of future performance. The Funds' comparative benchmarks do not include the annual operating expenses incurred by the Fund. Returns shown do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares. 3 STI CLASSIC CAPITAL APPRECIATION FUND ------------------------------------- The Capital Appreciation Fund ("the Fund") employs a philosophy of investing in large and midcap companies with positive earnings trends and reasonable valuations. Earnings trend criteria include a stable or improving rate of earnings growth, positive growth relative to investor expectations, and fundamental signs of growth sustainability. Other important elements considered are above average or rising profitability metrics such as return on equity, stable or improving revenue growth, and good quality of earnings. Generally companies in which the Fund invests represent leaders within their industry segments, as demonstrated by revenue growth, market shares, and levels of profitability. In terms of portfolio risk control, the Fund is structured to provide diversification across the major industry sectors, but with an emphasis on good earnings growth. Finally, the Fund manager employs an active sell discipline to weed out stocks with deteriorating earnings profiles, while striving to keep annual portfolio turnover within reasonable ranges. Large Cap core style growth funds faced a considerable headwind over the past twelve months. Primary challenges included a generally difficult environment for technology stocks which are a major segment of the large cap market. Also many "value" stocks which were deeply beaten down in the Internet bubble of 1999-2000 continued to rebound to more normal valuations. In many instances, these "value" stocks did not exhibit the strong earnings characteristics we look for in stock selection, thus were not consistent with the Fund's investment philosophy. Reflecting these trends, the Fund's Trust shares posted a negative total return of -11.1% for the fiscal year ended May 31, 2002. While acknowledging this lack of absolute return progress for the year, we were nonetheless encouraged by success against relevant comparisons. The Fund's index benchmark, the S&P 500 Composite Index, was down 13.9%, considerably worse than the Fund. Within the Fund's Lipper peer group of Large Cap Core funds, the average return was even worse, at -15.2%, and the Fund's Trust shares outperformed 84% of the over 800 funds in that category. On a three and five year basis, the Fund's Trust shares has outperformed 82% and 87%, respectively, of its Lipper Large Cap Core fund peers while also surpassing the S&P 500 Composite Index. During the last twelve months, the Fund was initially positioned rather defensively. The focus was on companies with stable revenue demand profits such as food suppliers, hospital management, technology service and software, and integrated energy companies. As the Federal Reserve began to respond to the recession which "officially" began in March 2001, with aggressive monetary easing, we felt the economic cycle would respond in rather typical fashion. Specifically, recessions usually last only 9-12 months and the stock market typically begins to respond to Fed rate cuts about nine months or so after the first cut. This meant that investors would tend to be looking for companies with greater operating earnings leverage by early 2002. Accordingly, beginning in late summer 2001, the Fund was gradually being repositioned to adopt a somewhat more aggressive stance. Obviously the terrible events of September 11th completely derailed this strategy. During the aftermath when the market was closed, we met with our research team frequently to formulate a new game plan. Based on considerable analysis and experience with crisis events, we believed the financial markets would trade down but in an over reactive process. We also felt the U.S. economy and American consumers were enormously resilient. Accordingly, the Fund aggressively added to companies with strong fundamental earnings trends which got hit in the late September sell off. This tactic paid off as the Fund outperformed its benchmark during the subsequent sharp recovery in Q4-2001. Since December 31, the stock market has reverted back to a more cautious mode, and the Fund has lagged just slightly through the end of May. The strategy of emphasizing companies which will benefit from rising industrial activity remains intact. We are convinced the earnings rebound will in fact occur, and the Fund's holdings will respond in due course. Looking forward, several uncertainties preoccupy investors' minds, including global terrorism, an evaporation of belief in corporate financial reporting, and the usual macro worries about whether the recovery will abort. We recognize that the really big issues are beyond our control and part of the overall risk of investing in equities. Therefore, we will continue to work on our bottoms-up stock selection process, believing that companies with the best relative profits growth will inexorably reward you, our shareholders. While a fairly small handful of companies have been instrumental in damaging investor confidence, most companies continue to operate prudently and generate cash earnings which can be reinvested or paid out as dividends. And we are optimistic that a better, more transparent and investor-friendly financial reporting framework will emerge from the current scrutiny, to the ultimate benefit of investor confidence. We thank you for your decision to invest in the Capital Appreciation Fund. We will work hard over the next year and beyond to produce competitive investment returns. /s/Robert J. Rhodes Robert J. Rhodes, CFA Portfolio Manager 4 TRUST SHARES AVERAGE ANNUAL TOTAL RETURNS (PERIODS ENDED MAY 31, 2002) Annualized Cumulative Inception Inception One Year 3 Years 5 Years to Date to Date -11.06% -2.29% 7.32% 11.53% 195.00% [Chart Omitted] [Plot Points follow] STI Classic Capital S&P 500 Appreciation Fund, Composite Trust Shares Index 7/31/92 10,000 10,000 5/93 11,203 10,884 5/94 11,638 11,344 5/95 12,409 13,630 5/96 16,004 17,503 5/97 19,951 22,649 5/98 25,938 29,596 5/99 30,445 35,826 5/00 33,179 39,581 5/01 31,938 35,405 5/02 28,406 30,501 INVESTOR SHARES AVERAGE ANNUAL TOTAL RETURNS (PERIODS ENDED MAY 31, 2002) Annualized Cumulative Inception Inception One Year 3 Years 5 Years to Date to Date -11.68% -2.93% 6.65% 11.15% 187.02% Without load -14.99% -4.15% 5.83% 10.72% 176.24% With load [Chart Omitted] [Plot Points follow] STI Classic Capital S&P 500 Appreciation Fund, Composite Investor Shares Index 7/31/92 9,625 10,000 5/93 1,1206 11,328 5/94 11,572 11,807 5/95 12,258 14,186 5/96 15,712 18,218 5/97 19,442 23,574 5/98 25,024 30,804 5/99 29,328 37,288 5/00 31,759 41,196 5/01 30,368 36,849 5/02 26,821 31,746 FLEX SHARES AVERAGE ANNUAL TOTAL RETURNS (PERIODS ENDED MAY 31, 2002) Annualized Cumulative Inception Inception One Year 3 Years to Date to Date -12.05% -3.36% 11.31% 111.63% Without load -13.79% With load [Chart Omitted] [Plot Points follow] STI Classic Capital S&P 500 Appreciation Fund, Composite Flex Shares Index 6/30/95 10,000 10,000 5/96 12,387 12,549 5/97 15,266 16,239 5/98 19,559 21,219 5/99 22,786 25,686 5/00 24,557 28,378 5/01 23,380 25,384 5/02 20,563 21,868 Past performance is no indication of future performance. The Funds' comparative benchmarks do not include the annual operating expenses incurred by the Fund. Returns shown do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares. 5 STI CLASSIC GROWTH AND INCOME FUND ---------------------------------- The STI Classic Growth and Income Fund ("the Fund") invests primarily in a diversified mix of midsize and larger domestic common stocks and listed ADRs of foreign companies with market capitalizations of at least $1.5 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 variability of return. Last year's commentary and outlook, we made the case for a historically subpar economic recovery producing a profit rebound within a low inflationary environment. At that time we also felt that the market correction which began in March 2000 left room for equities to stage a respectable albeit muted recovery, limited by overall valuation levels. The large capitalization segment of domestic equities performed poorly. Subsequent to our last fiscal year end update, two significant events materially detoured the recovery path for large cap equities. First, the terrorist acts of last September 11th and the ensuing realization that security both here and abroad would remain vulnerable to ongoing assault, changed investor's assessment of and willingness to take risk. Secondly, and perhaps as damaging from an investment perspective, were the corporate terrorist acts of deception, fraud, and financial abuse perpetrated by managements that have come to light in the aftermath of the ENRON scandal. The myriad excesses of the last bull market cycle continue to be exposed to an increasingly critical public eye, and the overall picture of management and accountability shortfalls by corporate stewards have undermined two basic tenets of investing: trust and confidence. Thus for many investors equity investing has become an unprofitable exercise in frustration and unfulfilled potential and rife with unpleasant surprises -- an apt description of a bear market. In the year just ended, our benchmark S&P Barra Value Index declined -15.4%, slightly worse than the overall S&P 500 Composite Index return of -13.9%. The Lipper Large Cap Value Funds declined 9.22%. By comparison, the Growth and Income Fund posted losses of -7.8%, -8.0%, and -8.7% for the Trust, Investor, and Flex Class shares respectively. While the Fund performed better than both its benchmark index and its Lipper peer group average for the year, our enthusiasm is tempered by the market's disappointing showing and the negative absolute impact on our investors. Still, our use of broad portfolio diversification and shifting emphasis to greater economic sensitivity buffered the performance shock of last year's pothole. While our exposure to poor-performing telecommunications and technology sectors hurt results, we enjoyed strong returns from greater exposure to consumer spending related issues, industrials and consumer staples. Consumer related positions are being pared back and redeployed into industrial and basic industry stocks and into select situations in healthcare and utilities. We typically use a 12-18 month timeframe in evaluating investment alternatives, and strive to be opportunistic in times such as now when market focus becomes blurred, myopic, or buffeted by emotion and transient newsflows. As conceded, our optimism last year collided with a raft of unexpected hazards and missed the mark. Nevertheless as we look ahead, we are encouraged by the progress on the economic and corporate profit recovery fronts, and believe the fundamental backdrop for equities is constructive and slowly improving. Also, inflation appears contained near term thus the interest rate outlook should be fairly benign. The severely recession-impacted areas of the economy -- business investment and inventories, are thawing from a deep freeze, and combined with greater government defense spending and a resilient consumer should foster a period of reasonable economic expansion. However, equities are unlikely to key off economic developments and respond fully until investors can resuscitate their dazed trust and confidence in corporate America and the capital markets. The restoration of investor confidence and the pace of economic/market recovery are linked in that both will develop slowly and unevenly and require a currently absent ingredient: patience. At the end of the day, the patient, disciplined investor is always best served, and the present environment should prove to be no different. The Growth and Income Fund team subscribes to that basic notion, and believes that this period of turmoil and high uncertainty has created sufficient opportunity that will become manifest in the upcoming year. We again thank all of our investors for your continued vote of confidence in our approach, particularly after such a challenging year, and hope to reflect on a period of better results in our next annual commentary. /s/Jeffrey E. Markunas Jeffrey E. Markunas, CFA Portfolio Manager 6 TRUST SHARES AVERAGE ANNUAL TOTAL RETURNS (PERIODS ENDED MAY 31, 2002) Annualized Cumulative Inception Inception One Year 3 Years 5 Years to Date to Date -7.80% -1.32% 7.05% 11.43% 185.02% [Chart Omitted] [Plot Points follow] STI Classic Growth S&P 500/ and Income Fund, BARRA Value Trust Shares Index 9/30/92 10,000 10,000 5/93 11,363 11,497 5/94 11,462 12,353 5/95 13,204 14,461 5/96 16,420 18,272 5/97 20,070 22,924 5/98 25,406 29,554 5/99 29,364 33,422 5/00 30,571 34,285 5/01 30,605 36,729 5/02 28,218 31,069 INVESTOR SHARES AVERAGE ANNUAL TOTAL RETURNS (PERIODS ENDED MAY 31, 2002) Annualized Cumulative Inception Inception One Year 3 Years 5 Years to Date to Date -7.97% -1.50% 6.93% 10.84% 154.15% Without load -11.42% -2.74% 6.11% 10.37% 144.62% With load [Chart Omitted] [Plot Points follow] STI Classic Growth S&P 500/ and Income Fund, BARRA Value Investor Shares Index 5/31/93 9,625 10,000 5/94 9,712 10,744 5/95 11,190 12,578 5/96 13,909 15,892 5/97 17,004 19,938 5/98 21,506 25,705 5/99 24,874 29,069 5/00 25,849 29,819 5/01 25,831 31,946 5/02 23,772 27,023 FLEX SHARES AVERAGE ANNUAL TOTAL RETURNS (PERIODS ENDED MAY 31, 2002) Annualized Cumulative Inception Inception One Year 3 Years 5 Years to Date to Date -8.69% -2.24% 6.15% 10.99% 110.86% Without Load -10.52% With load [Chart Omitted] [Plot Points follow] STI Classic Growth S&P 500/ and Income Fund, BARRA Value Flex Shares Index 4/30/95 10,000 10,000 5/95 10,293 10,445 5/96 12,721 13,197 5/97 15,440 16,557 5/98 19,403 21,346 5/99 22,267 24,140 5/00 22,959 24,763 5/01 22,783 26,528 5/02 20,803 22,440 Past performance is no indication of future performance. The Funds' comparative benchmarks do not include the annual operating expenses incurred by the Fund. Returns shown do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares. 7 STI CLASSIC INFORMATION AND TECHNOLOGY FUND ------------------------------------------- The Information and Technology Fund ("the Fund") seeks long-term capital appreciation by investing primarily in U.S. companies that are expected to benefit substantially from information & technology and achieve above average growth. The Fund has a three-tiered investment structure that it uses to classify holdings into one of the following three categories: pioneers, technology infrastructure companies, or information beneficiaries. The first category, pioneers, includes firms whose primary line of business focuses on an emerging technology product or information-intensive service. The second category, infrastructure companies, consists of established firms that provide infrastructure to support the electronic construction and transfer of information. The third category of companies encompasses established firms that harness information as a key driver of growth in their businesses. This three-tiered investment strategy helps the Fund to diversify its holdings and produce a superior risk-reward profile to those exhibited by pure technology funds. The Fund believes that a carefully constructed, well-diversified portfolio is an extremely effective tool for investing in technology companies and information-intensive businesses. This philosophy has proven to be very helpful for technology and aggressive growth investors during the volatile period of the last two years. The Fund uses bottom-up analysis in which the competitive advantages of companies are examined. In addition, the Fund considers each position in the context of industry, economic and financial market trends. Finally, each position is assessed for its ability to optimize the portfolio's balance between risk and potential reward. During the past 12 months, the Information and Technology Fund has returned -39.6% on Trust Shares. The Lipper Science and Technology Funds Index has returned -36.1% and the Goldman Sachs Technology Composite Index has returned -32.7% since May 31, 2001. /s/Alan Kelley Alan Kelley Portfolio Manager 8 TRUST SHARES(1) AVERAGE ANNUAL TOTAL RETURNS (PERIODS ENDED MAY 31, 2002) Annualized Cumulative Inception Inception One Year to Date to Date -39.58% -7.77% -19.40% [Chart Omitted] [Plot Points follow] STI Classic Goldman Sachs Information and Technology Goldman Sachs Lipper Science & Tecnhnology Fund, Composite E-Commerce Technology Trust Shares Index* Index Funds Objective 9/30/99 10,000 10,000 10,000 10,000 5/00 15,870 12,616 13,356 15,063 5/01 13,340 7,273 7,311 8,499 5/02 8,060 4,506 4,920 5,357 FLEX SHARES(2) AVERAGE ANNUAL TOTAL RETURNS (PERIODS ENDED MAY 31, 2002) Annualized Cumulative Inception Inception One Year to Date to Date -40.24% -8.62% -21.36% Without load -41.21% With load [Chart Omitted] [Plot Points follow] STI Classic Goldman Sachs Information and Technology Goldman Sachs Lipper Science & Tecnhnology Fund, Composite E-Commerce Technology Flex Shares Index* Index Funds Objective 9/30/99 10,000 10,000 10,000 10,000 5/00 15,818 12,616 13,356 15,063 5/01 13,157 7,273 7,311 8,499 5/02 7,864 4,506 4,920 5,357 Past performance is no indication of future performance. The Funds' comparative benchmarks do not include the annual operating expenses incurred by the Fund. (1) Trust Shares were offered beginning on September 30, 1999. (2) Flex Shares were offered beginning on January 24, 2000. Flex Shares' performance for the periods 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. * Previously the Fund's return had been compared to the Goldman Sachs E-Commerce Index, but the adviser believes that the Goldman Sachs Technology Composite Index more accurately reflects the inclusion of companies that are not focused on achieving growth through e-commerce initiatives. Returns shown do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares. 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. The Fund's performance for the year June 2001 to May 2002 was -8.6% (Trust Shares) versus the MSCI EAFE Index return of -9.6% and the Lipper International Fund Average return of -9.6%. The Fund did a good job preserving capital relative to its benchmark and relative to the Lipper Average of similar funds, outperforming the benchmark by 1% and the average international fund by 1%. During the 12-month period which was filled with volatility caused by international terrorism and massive changes to the benchmark of the Fund, the Fund managed to outperform for a number of reasons outlined below. First, we increased the number of stocks in the Fund and reduced the size of some of the largest holdings to better diversify in this period of extreme volatility. Second, we have continued to improve the quality of our research by adding an additional analyst, improving our quantitative screening processes and inputs, and improving other portfolio management tools. This streamlines the overall administrative burden of operating a fund and allows us to focus more on the investments. Performance at the industry sector level was driven by good stock selection in Industrials and Financials. FAG Kugelfischer (ballbearings); Sandvick (mining tools) and Saint Gobain (high tech materials) were all purchased at very attractive valuations and appreciated considerably during the year contributing to outperformance. In Financials BNP Paribas (France) Keppel Corp (Singapore), and Hana Bank (South Korea) all shared strength of management teams and success in business strategies which helped lift these stocks during the year. Some of the pharmaceutical companies in Japan, like Tanabe Seiyaku and Daiichi Pharmaceuticals, showed superior R&D productivity and performed very well for the Fund, but were liquidated during the year due to increasing competition and deteriorating pipeline of new products. The portfolio was successful at the tactical allocation of capital during the year, maintaining overweight positions in the best performing sectors. France, Germany, and South Korea were the best performing countries for the Fund, with mild underperformance in Switzerland and Japan. As we look forward, we believe a slow and gradual economic recovery will continue to materialize over the next few quarters. We have positioned the Fund to take advantage of this cyclical growth. The emphasis continues to be on stock selection. We will focus on companies with strong profitability growth, and strong market share growth in their respective industries that are trading at a valuation that is attractive when compared to their global peers. We believe earnings growth is the key to share price appreciation in any part of the economic cycle. Therefore a portfolio filled with companies that exhibit stronger than average earnings growth and lower than average valuation should do well over an investment cycle. 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 US stocks, many international stocks are still well undervalued, and we believe that this valuation disparity will continue to narrow. Low interest rates, better stock price valuations, and continued structural reforms give us reason to believe that the opportunity for strong economic growth is now available. 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, 2002) Annualized Cumulative Inception Inception One Year 3 Years 5 Years to Date* to Date* -8.64% -3.41% 0.33% 9.17% 90.28% [Chart Omitted] [Plot Points follow] STI Classic International Equity Fund, MSCI EAFE Index, Fund, Trust Shares in U.S.$ 6/30/94 10,000 10,000 5/95 10,331 10,343 5/96 11,291 11,256 5/97 12,135 12,067 5/98 15,269 14,401 5/99 16,470 15,010 5/00 19,659 17,900 5/01 15,944 14,558 5/02 13,962 12,817 INVESTOR SHARES AVERAGE ANNUAL TOTAL RETURNS (PERIODS ENDED MAY 31, 2002) Annualized Cumulative Inception Inception One Year 3 Years 5 Years to Date* to Date* -8.90% -3.74% -0.04% 8.81% 85.77% Without load -12.29% -4.96% -0.80% 8.25% 78.87% With load [Chart Omitted] [Plot Points follow] STI Classic International Equity Fund, MSCI EAFE Index, Fund, Investor Shares in U.S.$ 6/30/94 9,625 10,000 5/95 9,905 10,343 5/96 10,786 11,256 5/97 11,554 12,067 5/98 14,472 14,401 5/99 15,532 15,010 5/00 18,461 17,900 5/01 14,896 14,558 5/02 13,012 12,817 FLEX SHARES AVERAGE ANNUAL TOTAL RETURNS (PERIODS ENDED MAY 31, 2002) Annualized Cumulative Inception Inception One Year 3 Years 5 Years to Date* to Date* -9.61% -4.43% -0.75% 8.17% 77.85% Without load -11.42% With load [Chart Omitted] [Plot Points follow] STI Classic International Equity Fund, MSCI EAFE Index, Fund, Flex Shares in U.S.$ 6/30/95 10,000 10,000 5/96 10,911 11,020 5/97 11,610 11,814 5/98 14,455 14,099 5/99 15,421 14,696 5/00 18,202 17,525 5/01 14,591 14,253 5/02 12,655 12,548 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. Returns shown do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares. 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 Index, the Fund's benchmark. To help minimize tracking error, the Fund holds approximately 650 stocks in the portfolio. Tracking error represents a measure of how closely a portfolio matches the return of its benchmark. The Fund continues to have a low tracking error even though world equity market volatility has increased. During the 12 month period ended May 31, 2002, the international markets were down considerably. The STI Classic International Equity Index Fund was down -12.4% on Trust Shares. The MSCI EAFE-GDP Index, the Fund's benchmark, was down a similar -12.0%. The Fund did a good job tracking the index. During the year there were two major index rebalancings due to changes in how MSCI calculates the indices. Each rebalance had a turnover of approximately 10%. Even given all the added transactions, the Fund tracked the index quite well. A reminder to our investors: the index itself has no transaction costs and therefore was not impacted by this turnover. A major change was made to the MSCI methodology to control for "free Float." The index is now more representative of an investable universe of developed markets companies. Historically changes to the index have been minor, and we expect them to be more modest in future years. Performance for the year was down in all sectors but Materials and Consumer Staples. Information Technology, Telecomm, and Financial stocks were the worst performers. Japan had a very negative impact on the Fund with the Japanese market down over 17% during the time period covered by this report. Some of the smaller European markets like Belgium, Austria, and Switzerland along with Australia were up for the year. Looking forward, there are several major themes which will continue to influence 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 International Equity Index Fund is a proven 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 that international equities offer significant potential for U.S. investors. We are now witnessing the beginning of a change in the global outlook, where international stocks are outperforming domestic U.S. stocks. This trend could continue for the foreseeable future as non-U.S. equities play "catch-up" to U.S. stocks. For example, for the ten years ending May 31, 2002, the S&P 500 Composite Index of U.S. large stocks has returned 12.1% on an annualized basis while the MSCI EAFE Index of non-U.S. international companies is up only 5.3% annualized. Additionally, the trend of recent weakness in the exchange value of the U.S. dollar benefits U.S. investors in non-U.S. stocks. /s/Chad Deakins Chad Deakins, CFA Portfolio Manager 12 TRUST SHARES AVERAGE ANNUAL TOTAL RETURNS (PERIODS ENDED MAY 31, 2002) Annualized Cumulative Inception Inception One Year 3 Years 5 Years to Date to Date -12.43% -5.35% 2.84 4.19% 38.77% [Chart Omitted] [Plot Points follow] STI Classic MSCI EAFE-GDP Index International Equity Index Weighted, in U.S.$ Fund, Trust Shares (Price Return) 6/30/94 10,000 10,000 5/95 10,331 10,343 5/96 11,291 11,256 5/97 12,135 12,067 5/98 15,269 14,401 5/99 16,470 15,010 5/00 19,659 17,900 5/01 15,944 14,558 5/02 13,962 12,817 INVESTOR SHARES AVERAGE ANNUAL TOTAL RETURNS (PERIODS ENDED MAY 31, 2002) Annualized Cumulative Inception Inception One Year 3 Years 5 Years to Date to Date -12.65% -5.73% 2.40% 3.76% 34.23% Without load -15.92% -6.94% 1.62% 3.26% 29.19% With load [Chart Omitted] [Plot Points follow] STI Classic MSCI EAFE-GDP Index International Equity Index Weighted, in U.S.$ Fund, Investor Shares (Price Return) 6/30/94 9,625 10,000 5/95 9,905 10,343 5/96 10,786 11,256 5/97 11,554 12,067 5/98 14,472 14,401 5/99 15,532 15,010 5/00 18,461 17,900 5/01 14,896 14,558 5/02 13,012 12,817 FLEX SHARES AVERAGE ANNUAL TOTAL RETURNS (PERIODS ENDED MAY 31, 2002) Annualized Cumulative Inception Inception One Year 3 Years 5 Years to Date to Date -13.27% -6.37% 1.74% 3.30% 25.43% Without load -15.00% With load [Chart Omitted] [Plot Points follow] STIClassic MSCI EAFE-GDP Index International Equity Index Weighted, in U.S.$ Fund, Flex Shares (Price Return) 6/30/95 10,000 10,000 5/96 10,911 11,020 5/97 1,1610 11,814 5/98 14,455 14,099 5/99 15,421 14,696 5/00 18,202 17,525 5/01 14,591 14,253 5/02 12,655 12,548 Past performance is no indication of future performance. The Funds' comparative benchmarks do not include the annual operating expenses incurred by the Fund. Returns shown do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares. 13 STI CLASSIC LIFE VISION AGGRESSIVE GROWTH FUND ---------------------------------------------- Diversified portfolios continued to provide relative stability during the past year in what proved to be an economically, financially and politically turbulent climate. We began the new fiscal year for the STI Classic Life Vision Aggressive Growth Fund (the "Fund") in June 2001 with a sense of budding optimism that the worse of the economic slowdown was over, and that an economic recovery was evolving if not yet in place. Production cuts were well underway, excess inventories were being pared and interest rates were low enough to encourage mortgage re-financing. In addition, Congress and the Bush Administration passed a new tax cut and tax rebate plan that would increase consumer spending power. However, the terrible tragedy of September 11th caused consumers, businessmen, politicians and investors alike to question previous "norms", sending the economy and the stock markets lower. We were encouraged by the quick and decisive reaction from the Federal Reserve, the Administration and Congress during the period following the attacks and felt that the steps taken would revive the ailing economy and equity market. That call turned out to be correct and the stock markets rallied sharply in the fourth quarter last year. Unfortunately, the healing process for investor confidence was temporarily disrupted by the events of, and subsequent to, the Enron scandal as well as credit problems centered in the telecom industry. This tended to send equity markets lower at the end of the fiscal year for the Fund on May 31, 2002. During this time, the Fund's exposure to the small-cap equity class and the value style cushioned the impact of the turbulence experienced by less diversified investors. As a result of this diversification, the Fund generated superior returns relative to other multi-cap growth funds, though the Trust Class shares fell 7.0% in the twelve months ended May 31, 2002, versus the Lipper Multi-Cap Growth Funds Average return of -23.1% during that same period. Looking ahead, our outlook for the economy is positive, though we believe that the recovery will advance at only a moderate pace. Our strategy for what we expect will be a low-trajectory recovery favors equities, but we pared back the exposure to the large-cap and growth segments earlier in the year and emphasized the more stable small-cap and value segments. However, we do look for a recovery in the large-cap market in the coming year. We wish to take this opportunity to thank you again for the confidence you have placed with us in managing your funds in the STI Classic Life Vision Aggressive Growth Fund. We will strive to keep that trust in the year ahead. /s/David E. West David E. West Managing Director /s/Alan M. Gayle Alan M. Gayle Managing Director 14 TRUST SHARES AVERAGE ANNUAL TOTAL RETURNS (PERIODS ENDED MAY 31, 2002) Annualized Cumulative Inception Inception One Year 3 Years 5 Years* to Date* to Date* -6.96% 0.94% 6.15% 9.35% 131.97% [Chart Omitted] [Plot Points follow]
STI Classic Life Vision Aggressive 61/15/12/10/2 Morgan Stanley Salomon Russell Growth Fund, Hybrid Russell MSCI EAFE Russell 3-Month Mid-Cap Trust Shares Benchmark 1000 Index Index 2000 Index T-Bill Index Index 12/31/92 10,000 10,000 10,000 10,000 10,000 10,000 10,000 5/93 10,697 10,719 10,420 12,519 10,588 10,125 10,590 5/94 10,840 11,376 10,850 14,218 11,511 10,454 11,183 5/95 12,108 13,011 12,908 14,922 12,697 10,998 12,953 5/96 14,858 16,230 16,711 16,514 17,255 11,601 16,650 5/97 17,216 19,358 21,243 17,761 18,458 12,211 19,526 5/98 21,038 23,986 27,767 19,735 22,378 12,851 24,862 5/99 22,557 27,219 33,406 20,595 21,776 13,462 27,102 5/00 24,192 30,565 37,402 24,125 23,934 14,163 30,696 5/01 24,935 28,159 33,374 19,910 25,296 14,984 32,209 5/02 23,199 25,531 28,926 18,051 25,169 15,378 31,043
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. Returns shown do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares. 15 STI CLASSIC LIFE VISION GROWTH AND INCOME FUND ---------------------------------------------- Diversified portfolios continued to provide relative stability during the past year in what proved to be an economically, financially and politically turbulent climate. We began the new fiscal year for the STI Classic Life Vision Growth and Income Fund (the "Fund") in June 2001 with a sense of budding optimism that the worse of the economic slowdown was over, and that an economic recovery was evolving if not yet in place. Production cuts were well underway, excess inventories were being pared and interest rates were low enough to encourage mortgage re-financing. In addition, Congress and the Bush Administration passed a new tax cut and tax rebate plan that would increase consumer spending power. However, the terrible tragedy of September 11th caused consumers, businessmen, politicians and investors alike to question previous "norms", sending the economy and the stock markets lower. We were encouraged by the quick and decisive reaction from the Federal Reserve, the Administration and Congress during the period following the attacks and felt that the steps taken would revive the ailing economy and equity market. That call turned out to be correct and the stock markets rallied sharply in the fourth quarter last year. Unfortunately, the healing process for investor confidence was temporarily disrupted by the events of, and subsequent to, the Enron scandal as well as credit problems centered in the telecom industry. This tended to send equity markets lower and interest rates down at the end of the fiscal year for the Fund on May 31, 2002. During this time, the Fund's exposure to the small-cap equity class, the value style, and bonds cushioned the impact of the turbulence experienced by less diversified investors. As a result of this diversification, the Fund generated strong returns relative to other multi-cap value funds, though the Trust Class shares fell 3.0% in the twelve months ended May 31, 2002, versus the Lipper Multi-Cap Value Funds Average of -4.9% during that same period. Looking ahead, our outlook for the economy is positive, though we believe that the recovery will advance at only a moderate pace. Our strategy for what we expect will be a low-trajectory recovery favors equities, but we pared back the exposure earlier in the year and emphasized the more stable small-cap and value segments as well as bonds. We wish to take this opportunity to thank you again for the confidence you have placed with us in managing your funds in the STI Classic Life Vision Growth and Income Fund. We will strive to keep that trust in the coming year. /s/David E. West David E. West Managing Director /s/Alan M. Gayle Alan M. Gayle Managing Director 16 TRUST SHARES AVERAGE ANNUAL TOTAL RETURNS (PERIODS ENDED MAY 31, 2002) Annualized Cumulative Inception Inception One Year 3 Years 5 Years* to Date* to Date* -2.97% 2.96% 6.57% 8.50% 115.67% [Chart Omitted] [Plot Points follow]
STI Classic Life Vision Merrill 1-5 Year Morgan Growth and 40/17/16/13/12/2 U.S.Corporate/ Lehman U.S. Stanley Russell Russell Income Fund, Hybrid Russell Government Government/ MSCI EAFE 2000 Mid-Cap Trust Shares Benchmark 1000 Index Index Credit Index Index Index Index 12/31/92 10,000 10,000 10,000 10,000 10,000 10,000 10,000 10,000 5/93 10,551 10,786 10,420 10,368 10,541 12,519 10,588 10,590 5/94 10,664 11,376 10,850 10,550 10,648 14,218 11,511 11,183 5/95 11,875 12,859 12,908 11,441 11,884 14,922 12,697 12,953 5/96 13,878 15,337 16,711 12,017 12,371 16,514 17,255 16,650 5/97 15,688 17,705 21,246 12,849 13,349 17,761 18,458 19,526 5/98 18,529 21,264 27,771 13,845 14,881 19,735 22,378 24,862 5/99 19,760 23,499 33,412 14,575 15,485 20,595 21,776 27,102 5/00 20,908 25,898 37,408 15,085 15,778 24,125 23,934 30,696 5/01 22,227 25,173 33,379 16,782 17,808 19,968 25,296 32,209 5/02 21,567 23,997 28,926 17,974 19,205 18,051 25,169 31,043
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. Returns shown do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares. 17 STI CLASSIC LIFE VISION MODERATE GROWTH FUND -------------------------------------------- Diversified portfolios continued to provide relative stability during the past year in what proved to be an economically, financially and politically turbulent climate. We began the new fiscal year for the STI Classic Life Vision Moderate Growth Fund (the "Fund") in June 2001 with a sense of budding optimism that the worse of the economic slowdown was over, and that an economic recovery was evolving if not yet in place. Production cuts were well underway, excess inventories were being pared and interest rates were low enough to encourage mortgage re-financing. In addition, Congress and the Bush Administration passed a new tax cut and tax rebate plan that would increase consumer spending power. However, the terrible tragedy of September 11th caused consumers, businessmen, politicians and investors alike to question previous "norms", sending the economy and the stock markets lower. We were encouraged by the quick and decisive reaction from the Federal Reserve, the Administration and Congress during the period following the attacks and felt that the steps taken would revive the ailing economy and equity market. That call turned out to be correct and the stock markets rallied sharply in the fourth quarter last year. Unfortunately, the healing process for investor confidence was temporarily disrupted by the events of, and subsequent to, the Enron scandal as well as credit problems centered in the telecom industry. This tended to send equity markets lower and interest rates down at the end of the fiscal year for the Fund on May 31, 2002. During this time, the Fund's exposure to the small-cap equity class, the value style, and bonds cushioned the impact of the turbulence experienced by less diversified investors. As a result of this diversification, the Fund generated strong returns relative to other balanced funds, though the Trust Class shares fell 1.5% in the twelve months ended May 31, 2002, versus the Lipper Balanced Funds Average return of -5.9% during that same period of time. Looking ahead, our outlook for the economy is positive, though we believe that the recovery will advance at only a moderate pace. Our strategy for what we expect will be a low-trajectory recovery favors equities, but we pared back the exposure earlier in the year and emphasized the more stable small-cap and value segments as well as bonds. We wish to take this opportunity to thank you again for the confidence you have placed with us in managing your funds in the STI Classic Life Vision Moderate Growth Fund. We will strive to keep that trust in the coming year. /s/David E. West David E. West Managing Director /s/Alan M. Gayle Alan M. Gayle Managing Director 18 TRUST SHARES AVERAGE ANNUAL TOTAL RETURNS (PERIODS ENDED MAY 31, 2002) Annualized Cumulative Inception Inception One Year 3 Years 5 Years* to Date* to Date* -1.52% 2.69% 6.19% 7.79% 102.72% [Chart Omitted] [Plot Points follow]
STI Classic Life Vision Merrill 1-5 Year Morgan Moderate 27/26/22/14/01/1 U.S.Corporate/ Lehman U.S. Stanley Russell Russell Growth Fund, Hybrid Russell Government Government/ MSCIEAFE 2000 Mid-Cap Trust Shares Benchmark 1000 Index Index Credit Index Index Index Index 12/31/92 10,000 10,000 10,000 10,000 10,000 10,000 10,000 10,000 5/93 10,539 10,738 10,420 10,368 10,541 12,519 10,588 10,590 5/94 10,601 11,244 10,850 10,550 10,648 14,218 11,511 11,183 5/95 11,774 12,572 12,908 11,441 11,884 14,922 12,697 12,953 5/96 13,439 14,466 16,711 12,017 12,371 16,514 17,255 16,650 5/97 15,013 16,317 21,243 12,849 13,349 17,761 18,458 19,526 5/98 17,580 19,056 27,767 13,845 14,881 19,735 22,378 24,862 5/99 18,718 20,725 33,406 14,575 15,485 20,595 21,776 27,102 5/00 19,553 22,481 37,402 15,085 15,778 24,125 23,934 30,696 5/01 20,585 22,672 33,374 16,782 17,808 19,910 25,296 32,209 5/02 20,272 22,370 28,926 17,974 19,205 18,051 25,169 31,043
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. Returns shown do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares. 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 Mid-Cap 400 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 ended May 31, 2002 the Fund returned -10.6% (Trust Shares) versus a return of 2.4% for the S&P Mid-Cap 400 Index. Mid-cap stocks continued to outperform large cap stocks as the S&P 500 Composite Index returned -13.9% over the period. The Fund's bias toward growth stocks worked to its detriment over the last twelve months. The market has continued to experience a period of outperformance by Value versus Growth. For example, the Russell Mid-Cap Value Index returned 5.3% over the last twelve months versus a -17.2% return for the Russell Mid-Cap Growth Index. The Fund's performance fell in between the performance of the Lipper Mid-Cap Growth Index -18.5% and the Lipper Mid-Cap Core Index -4.4%. The Fund had a strong showing in the last seven months of 2001 driven by a focus on companies leveraged to an economic rebound. In 2002 the Fund's performance has been negatively impacted by poor performing Information Technology and Consumer Discretionary stocks where earnings improvement has not yet materialized. Looking forward, we believe the relative performance of Growth versus Value may improve after what has been a difficult period for Growth managers. Mid-cap stocks have continued to perform well versus Large cap stocks. We feel that this can continue given Mid-caps' attractive valuations relative to Large caps and because of increased visibility and sponsorship for Mid-caps as an asset class. The Funds portfolio is valued at 17 times next year's projected earnings and the average projected long-term growth rate is 20%. We think these valuations offer a compelling investment opportunity. With an average market cap of $3.5 billion the Fund is positioned to participate in continued strong performance of mid-cap stocks. The Fund remains positioned to benefit from a continuing economic recovery. We are focusing most intensely on companies whose earnings are already showing positive earnings trends as a result of the improved economy. Earnings are improving for many cyclical companies. We expect that our bottoms-up approach to identifying and investing in companies with the best relative earnings growth will be rewarded. /s/John Hamlin John Hamlin, CFA Portfolio Manager 20 TRUST SHARES AVERAGE ANNUAL TOTAL RETURNS (PERIODS ENDED MAY 31, 2002) Annualized Cumulative Inception Inception One Year 3 Years 5 Years to Date to Date -10.59% -0.30% 4.06% 8.30% 94.19% [Chart Omitted] [Plot Points follow] STI Classic S&P 500 Mid-Cap Equity Fund, Mid-Cap Trust Shares 400 Index 2/28/94 10,000 10,000 5/94 9,735 9,516 5/95 10,958 10,803 5/96 13,756 13,873 5/97 15,714 16,397 5/98 19,035 21,294 5/99 19,342 23,837 5/00 23,036 28,950 5/01 21,442 32,111 5/02 19,171 32,879 INVESTOR SHARES AVERAGE ANNUAL TOTAL RETURNS (PERIODS ENDED MAY 31, 2002) Annualized Cumulative Inception Inception One Year 3 Years 5 Years to Date to Date -11.00% -0.75% 3.58% 7.78% 86.73% Without load -14.30% -2.01% 2.80% 7.29% 79.72% With load [Chart Omitted] [Plot Points follow] STI Classic S&P 500 Mid-Cap Equity Fund, Mid-Cap Investor Shares 400 Index 1/31/94 9,625 10,000 5/94 9,471 9,381 5/95 10,603 10,650 5/96 13,247 13,676 5/97 15,070 16,164 5/98 18,168 20,992 5/99 18,381 23,498 5/00 21,790 28,539 5/01 20,191 31,655 5/02 17,970 32,412 FLEX SHARES AVERAGE ANNUAL TOTAL RETURNS (PERIODS ENDED MAY 31, 2002) Annualized Cumulative Inception Inception One Year 3 Years 5 Years to Date to Date -11.54% -1.33% 2.96% 7.02% 60.59% Without load -13.31% With load [Chart Omitted] [Plot Points follow] STI Classic S&P 500 Mid-Cap Equity Fund, Mid-Cap Flex Shares 400 Index 6/30/95 10,000 10,000 5/96 11,839 12,339 5/97 13,385 14,584 5/98 16,035 18,940 5/99 16,125 21,201 5/00 19,006 25,749 5/01 17,508 28,561 5/02 15,488 29,243 Past performance is no indication of future performance. The Funds' comparative benchmarks do not include the annual operating expenses incurred by the Fund. Returns shown do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares. 21 STI CLASSIC MID CAP VALUE EQUITY FUND ------------------------------------- The STI Classic Mid Cap Value Equity Fund's ("the Fund") primary emphasis is capital appreciation. The Fund seeks to achieve this goal through investing in mid-cap (market capitalization between $1 billion and $12 billion) companies that are believed to be undervalued. Our philosophy is that potential superior returns can be gained by investing in solid companies that are trading at a discount to their history, their peers, or the market. The Fund utilizes a disciplined, bottoms-up approach of seeking out undervalued companies that display characteristics of financial strength. This examination is centered on the traditional financial statement analysis of balance sheets, income statements and statements of cash flows. Next, the Fund attempts to identify those companies with improving fundamentals and/or some catalyst that increase the likelihood of a company's value being realized. The Fund places more emphasis on valuation metrics such as Price/Sales, Enterprise Value/EBITDA and Long-Term Debt/Capitalization ratios versus the more common Price/Earnings and Price/Expected EPS Growth ratios. The Fund (Trust shares) returned a very favorable 9.7% for the inception-to-date period ended May 31, 2002. In general, the past year has seen a market environment where small and mid cap `value' companies were more in favor with investors and fared better than their larger growth counterparts. The Fund was able to take advantage of this opportunity by posting positive returns in the high single digits versus the negative performance exhibited by other style indices. We are pleased with the Fund's (Trust shares) 9.7% return over the period mentioned above, but there was a slight underperformance versus the Russell Mid Cap Value Index, which returned 12.1% over the same time period. The Fund's process typically yields companies in the early stages of an economic or company specific turnaround. Therefore, it is not uncommon for initial underperformance to occur in any one company or even a whole sector in such a limited time frame as we are looking at here since the Fund's inception. A constant re-evaluation is conducted for any shifts in fundamentals and barring a major adverse change, we typically allow more time for a stock or sector to improve. Over longer time periods, we would expect our investment process to yield superior returns. The Fund's heavier weighting in the Energy sector (12% versus the benchmark at 5%) along with strong stock selection helped this area to have a positive impact on performance. Our holdings benefited from a rise in oil prices due to fairly strict adherence by OPEC to capacity cutbacks and the continued unrest in the Middle East. The valuations of many of these companies increased and we began to question whether commodity prices could remain at above average levels. Thus, the Fund's weightings in the Energy sector have been shifted to a more neutral position versus the benchmark. Looking ahead, the Fund is positioned to benefit from an anticipated economic recovery by being overweight in Materials, Industrials and Information Technology. This anticipated rebound is supported by the tremendous amount of monetary and fiscal stimulus provided by the government after the September 11th tragedy. /s/Dan Lewis Dan Lewis Co-Portfolio Manager /s/Don Wordell Don Wordell Co-Portfolio Manager 22 TRUST SHARES* AVERAGE ANNUAL TOTAL RETURNS (PERIODS ENDED MAY 31, 2002) Cumulative Inception to Date 9.65% [Chart Omitted] [Plot Points follow] STI Classic Russell 500 Mid-Cap Value Equity Mid-Cap Fund, Trust Shares Value Index 11/30/01 10,000 10,000 5/02 10,965 11,212 FLEX SHARES* AVERAGE ANNUAL TOTAL RETURNS (PERIODS ENDED MAY 31, 2002) Cumulative Inception to Date 9.24% Without load 7.24% With load [Chart Omitted] [Plot Points follow] STI Classic Russell 500 Mid-Cap Value Equity Mid-Cap Fund, Flex Shares Value Index 11/30/01 10,000 10,000 5/02 10,724 11,212 Past performance is no indication of future performance. The Funds' comparative benchmarks do not include the annual operating expenses incurred by the Fund. *Commenced operations on November 30, 2001. Returns shown do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares. 23 STI CLASSIC SMALL CAP GROWTH STOCK FUND --------------------------------------- The STI Classic Small Cap Growth Stock Fund's (the "Fund") 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. Management of the Fund believes in executing a disciplined and objective investment process and controlling risk through a broadly diversified portfolio. In selecting stocks for the Fund, the management team looks for companies with strong current and projected earnings growth, improving profitability trends, a strong balance sheet, and high quality earnings. In addition, the business fundamentals of each company are rigorously scrutinized to determine the sustainability of earnings growth prospects. Lastly, the Fund focuses on those companies that have the best combination of the above characteristics and purchases them at reasonable valuations. The portfolio holdings are spread across a broad spectrum of industries and economic sectors. This past year was marked by a continuation of several trends in the marketplace. Small cap stocks outperformed Large cap stocks. Value stocks outperformed Growth stocks. And, the technology bubble continued to deflate. While there were several sharp rallies over the past year, the NASDAQ Composite lost another 23% of its value as most technology issues languished and stock valuations continued to contract. Excess capacity and intense competition within many segments of technology was a difficult challenge in and of itself. But under the weight of a weakening economy and weak corporate earnings, technology and telecom spending languished and actually continued to deteriorate. This environment was once again most difficult for growth-oriented managers. To combat the weak economy, the Federal Reserve continued to lower interest rates throughout 2001. As a result, in the latter part of this fiscal year, the economy produced some of the initial signs of a trough and modest upturn, such as reduced inventory levels, an improvement in initial claims for unemployment, a trough in the rate of industrial production, and strong auto and new home sales. While the consumer has been a strong driver of the economy over the past year, even through the events of September 11th, the latest round of economic reports suggest that the consumer momentum might be starting to wane while industrial activity showed further evidence of improvement. These positive economic signs, while not reflected in technology issues, were reflected in many other small and mid-sized companies. The S&P Small Cap 600 and Russell 2000 Indices finished the year with returns of 9.6% and -0.5%, respectively. Meanwhile, the S&P 500 Composite Index of larger companies was down -13.9%, marking the third consecutive year (ending May 31) Small cap stocks have out-performed the Large cap index. Within this environment of a strong consumer and improving industrial activity, Consumer Discretionary, Financial, Industrial, and Materials companies were some of the best performing groups among the Small cap stock universe. Many of these companies fall within the Value style category. The performance disparity between the Value and Growth styles was significant over the past year as the Russell 2000 Value Index returned 15.4% versus -15.8% for the Russell 2000 Growth Index. Three years ago, value measures did not seem to matter in selecting stocks. Over the past couple of years value once again has become one of the most important criterion for stock selection. The Fund produced respectable investment results in a difficult year for growth investors. For the year ended May 31, 2002, the Fund (Trust shares) returned -5.6%, compared to the -0.5% and 9.6% return of the Russell 2000 and S&P Small Cap 600 Indices, respectively. The Fund results compare very favorably to its mutual fund peers as the Lipper Small Cap Growth average was down -13.7% and the Russell 2000 Growth Index was down -15.8%. This return placed the Fund (Trust shares) in the top 20 percentile of funds in the Lipper Small Cap Growth category. The Fund's performance results can be attributed to a couple of key factors. As discussed above, many stocks within the Consumer Discretionary sector performed well, and this was one of the Fund's best performing groups as well. The Fund maintained exposure that averaged around 20% of the portfolio over the past year, in-line with the broad small cap benchmark, the S&P Small Cap 600 Index. Interestingly, three of the Fund's top contributors to performance were the same as the prior year, CHICO'S FASHIONS, CHRISTOPHER & BANKS, and CIRCUIT CITY - CARMAX GROUP. CHICO'S and CHRISTOPHER & BANKS have been two of the most successful apparel retailing concepts over the past 5 years, catering to the strong demographic group of women over 35+ years of age. Boasting some of the strongest fundamental trends in the group, these companies have maintained positive same-store sales momentum throughout the economic downturn and through September 11th, as well. CARMAX GROUP, the used-car retail superstore chain, has also been an up-and-coming retail concept. The company's no-haggle pricing policy and comfortable car shopping and buying atmosphere has won over the consumer, as the company posted double-digit same-store sales gains over the past year. Recently, the company announced a major expansion plan that Fund management determined would slow near-term earnings growth. As a result, the Fund sold nearly 70% of its holdings after a six-fold move from the average purchase price. Other strong performers in this group include gaming companies, PENN NATIONAL GAMING, and MTR GAMING, PF CHANGS CHINA BISTRO, COACH, the luxury retail leather and apparel chain, the recreational vehicle manufacturers MONACO COACH and WINNEBAGO, and shoe manufacturer, K-SWISS. The Fund manage 24 ment team visited with the CEO of MTR GAMING following September 11th and could see first hand that business was robust and recovering at a rapid pace following an initial drop-off. In addition, the team got a first hand look at the growth drivers in place for 2002 and beyond. The Fund capitalized by purchasing additional shares at substantially discounted prices during the post September 11th market sell off. The Industrials sector was also fertile ground for good performing stocks including defense stocks ALLIANT TECHSYSTEMS, DRS TECHNOLOGIES, HERLEY INDUSTRIES, and CACI INTERNATIONAL. The Fund had identified each of these companies prior to September 11th based on improving earnings trends and fundamentals. Fund management believes that the long-term fundamentals have improved substantially since September 11th with the passage of the largest defense budget ever. Several companies have seen immediate impact already to their bookings and orders, but the bulk of the impact from the increase in government spending will not take full effect until next year and beyond. Trucking stocks such as LANDSTAR and J B HUNT TRANSPORT were also strong performers. And last, DAL-TILE, one of the largest manufacturers of ceramic tile in the world, was acquired by MOHAWK INDUSTRIES during the 4th quarter of 2001. This strategic acquisition gives Mohawk instant entry into a new floor covering market and provides tremendous cross-selling opportunities for the combined company. The Fund owned both of these companies and benefited greatly as MOHAWK increased nearly 100% over the past year. While Fund management continues to like the company's prospects, the company has grown to nearly $5 billion in market capitalization and we have been in the process of phasing out of the position. On the negative side, the Fund has maintained exposure in the technology sector on average 10% over the broad benchmark weighting. Toward the end of 2001, the management team began to see individual companies demonstrating positive indicators of improvement in earnings trends, fundamentals, balance sheet trends, and valuation. In addition, there existed pockets of real strength in several segments such as flat panel displays, DVD semiconductor chips, and supply chain management software. However, many of these indications were signals of false hope and caused us to be wrong on several companies and our decision to be over-weight the sector. As discussed above, this sector was the worst performing sector by far over the past year, and there has been no escaping the broad macro trends that have affected most companies within technology. Going forward, careful stock selection, opportune trading, and valuation analysis within this sector all should play a key role to success. The Fund's overall strategy will remain consistent, focusing on companies that have accelerating sales and earnings momentum, positive estimate revision trends, improving fundamentals, strong cash flow, solid balance sheets and reasonable valuation. But while the strategy remains the same, the names of the companies may change, particularly during an economic transition. As the economy strengthens, many different types of companies are emerging with positive characteristics. Most recently our bottom-up stock selection approach has caused Fund management to place particular emphasis on companies within the Industrials, Materials, Energy and Consumer Discretionary sectors. Our positive outlook for Small cap stocks remains, but has moderated somewhat. Much of the value disparity that existed between Small and Large cap stocks two years ago has diminished. Nonetheless, our positive outlook is buoyed by strong expected earnings growth over the coming quarters for Small cap companies and continued strong flows of funds into small cap stocks. One issue that has taken center stage with investors and tempers our positive outlook is the weak US dollar and the potential for rising bond yields as a result. An environment of dollar weakness and rising yields has historically been somewhat detrimental to Small cap stock performance. 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 while moderating the risk compared to other aggressive Small cap Growth funds. We feel confident that the 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 25 TRUST SHARES AVERAGE ANNUAL TOTAL RETURNS (PERIODS ENDED MAY 31, 2002) Annualized Cumulative One 3 Years Inception Inception Year Year to Date to Date -5.55% 9.19% 19.20% 89.69% [Chart Omitted] [Plot Points follow] STI Classic S&P Small Cap Small-Cap Growth Stock 600 Fund, Trust Shares Index 10/31/98 10,000 10,000 5/99 12,070 11,168 5/00 15,358 12,748 5/01 16,637 14,473 5/02 15,714 15,865 INVESTOR SHARES(1) AVERAGE ANNUAL TOTAL RETURNS (PERIODS ENDED MAY 31, 2002) Annualized Cumulative One Inception Inception Year 3 Year to Date* to Date* -5.86% 8.86% 18.90% 87.98% Without load -9.38% 7.48% 17.66% 80.93% With load [Chart Omitted] [Plot Points follow] STI Classic S&P Small Cap Small-Cap Growth Stock 600 Fund, Investor Shares Index 10/31/98 9,625 10,000 5/99 11,618 11,168 5/00 14,758 12,748 5/01 15,922 14,473 5/02 14,989 15,865 FLEX SHARES AVERAGE ANNUAL TOTAL RETURNS (PERIODS ENDED MAY 31, 2002) Annualized Cumulative One 3 Years Inception Inception Year Year to Date to Date -6.50% 8.08% 17.99% 82.76% Without load -8.36% With load [Chart Omitted] [Plot Points follow] STI Classic S&P Small Cap Small-Cap Growth Stock 600 Fund, Flex Shares Index 10/31/98 10,000 10,000 May 99 12,004 11,168 May 00 15,119 12,748 May 01 16,206 14,473 May 02 15,153 15,865 Past performance is no indication of future performance. The Funds' comparative benchmarks do not include the annual operating expenses incurred by the Fund. (1) Investors Shares were offered beginning 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. Returns shown do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares. 26 This page left intentionally blank. 27 STI CLASSIC SMALL CAP VALUE EQUITY FUND --------------------------------------- Small cap value equities and the STI Classic Small Cap Value Equity Fund ("the Fund") produced excellent returns over the past year. The Fund outperformed its benchmark for the 12 months ended May 31, 2002, with the Fund (Trust shares) returning 20.1% versus the Russell 2000 Value Index return of 15.4%. The Fund and Small cap value stocks performed well considering the stream of negative news that hit the financial markets over the past year. The tragic events of September 11th, other terrorist events around the globe, the fallout from Enron's collapse, Middle-East turmoil and volatile energy prices all made the last year treacherous for equity investors. With weak economic growth and depressed earnings from much of corporate America, our investment philosophy performed well. Our continued focus on high quality, undervalued, dividend paying, small cap companies paid off as investors focused on valuations, cash flow, and dividends. Those companies that are simpler to understand did better, as did those with pristine financial accounting. Continued fallout from the technology and telecom bubble of 3 years ago also aided the Fund as it had little exposure to those companies in those overvalued and overhyped sectors. Consumer and credit cyclical companies performed very well over the year. Health care and Technology stocks under performed whereas the Fund's Energy stocks added value in a difficult sector. We believe the U.S. and global economies are slowly recovering and we have positioned the portfolio to take advantage of this. We have recently been adding to the Fund's technology exposure as many of these companies have become undervalued. We also have a higher than normal exposure to international firms due to their attractive valuations. The Fund portfolio is closer to long term normal valuations now than it was two years ago when the small cap value sector was dramatically undervalued. Relative to large cap stocks the small cap sector continues to have very attractive valuation characteristics. We remain positive on the small cap value sector and all of the companies the Fund owns. We thank you for your continued interest in the Fund and look forward to continued success. /s/Brett Barner Brett Barner CFA Portfolio Manager 28 TRUST SHARES AVERAGE ANNUAL TOTAL RETURNS (PERIODS ENDED MAY 31, 2002) Annualized Cumulative One Inception Inception Year 3 Year 5 Years* to Date* to Date* 20.06% 15.84% 9.32% 15.93% 214.50% [Chart Omitted] [Plot Points follow] STI Classic Russell Small-Cap Value Equity 2000 Value Fund, Trust Shares Index 8/31/94 10,000 10,000 5/95 11,432 10,471 5/96 15,171 13,272 5/97 20,138 16,009 5/98 24,888 20,279 5/99 20,229 18,346 5/00 19,274 18,298 5/01 26,194 23,684 5/02 31,448 27,333 FLEX SHARES AVERAGE ANNUAL TOTAL RETURNS (PERIODS ENDED MAY 31, 2002) Annualized Cumulative One Inception Inception Year 3 Year 5 Years* to Date* to Date* 18.92% 14.64% 8.20% 15.16% 198.66% Without load 16.92% With load [Chart Omitted] [Plot Points follow] STI Classic Russell Small-Cap Value Equity 2000 Value Fund, Flex Shares Index 8/31/94 10,000 10,000 5/95 11,432 10,471 5/96 15,171 13,272 5/97 20,138 16,009 5/98 24,627 20,279 5/99 19,819 18,346 5/00 18,700 18,298 5/01 25,114 23,684 5/02 29,865 27,333 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. Returns shown do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares. 29 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 common stock portfolio 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. For the year ended May 31, 2002, the benchmark S&P 500 Composite Index returned -13.9% on a total return basis. The Lipper Large-Cap Core Average registered a total return of -15.2%. The STI Classic Tax Sensitive Growth Stock Fund returned -13.1% (Trust Shares), which was ahead of both indices for the period. Good relative performance over the last twelve months was due to several factors that materially affected the Fund. The investment climate was characterized by disappointing earnings forecasts, concern over company's debt levels and accounting, and mounting tension due to Middle East conflicts. Investor focus on company debt and accounting had a positive affect on Fund results. The investment philosophy of the Fund has always been to focus on companies that exhibit relatively low debt levels and high quality of earnings. For example, on May 31, 2002 the debt to equity ratio of the companies that make up the Fund was 32.2% versus the S&P 500 Composite Index of 36.7%, which illustrates the financial strength of the companies in the Fund. At the industry sector level, certain themes emerged during the period as a result of our investment process. The process starts with qualitative factors such as relatively low company debt levels, strong management team, and conservative accounting practices. Next, quantitative factors such as earnings momentum and estimate revisions are utilized. This "bottoms-up" process resulted in a slight overweight in the Consumer and Health Care industries. Examples include CHRISTOPHER & BANKS, HARLEY-DAVIDSON, PROCTER & GAMBLE, and WELLPOINT HEALTH NETWORKS. Telecommunication Services were underweighted due to poor fundamentals and earnings momentum. These sector-weighting decisions had a positive influence on Fund results. Going forward, the Fund is slightly overweight in Health Care and Retail but continues to trim as valuations rise. Plans are to add to cyclical areas such as Technology and Industrials if recent economic strength continues. The STI Tax Sensitive Growth Stock Fund completed the fourth year of paying out ZERO TAXABLE DISTRIBUTIONS and has an imbedded tax benefit of over $6 per share, which can be used to produce tax-free growth in future periods. /s/Jonathan Mote Jonathan Mote, CFA Portfolio Manager 30 TRUST SHARES AVERAGE ANNUAL TOTAL RETURNS (PERIODS ENDED MAY 31, 2002) Annualized Cumulative One Inception Inception Year 3 Year 5 Years* to Date* to Date* -13.05% -8.10% 4.47% 9.00% 73.85 % [Chart Omitted] [Plot Points follow] STI Classic S&P 500 Tax Sensitive Growth Stock Composite Fund, Trust Shares Index 12/31/95 10,000 10,000 5/96 10,767 10,966 5/97 13,971 14,190 5/98 17,311 18,542 5/99 22,402 22,445 5/00 24,750 24,797 5/01 19,995 22,181 5/02 17,386 19,109 FLEX SHARES AVERAGE ANNUAL TOTAL RETURNS (PERIODS ENDED MAY 31, 2002) Annualized Cumulative One Inception Inception Year 3 Year 5 Years* to Date* to Date* -13.98% -9.06% 3.73% 8.40% 67.79% Without load -15.70% With load [Chart Omitted] [Plot Points follow] STI Classic S&P 500 Tax Sensitive Growth Stock Composite Fund, Flex Shares Index 12/31/95 10,000 10,000 5/96 10,767 10,966 5/97 13,971 14,190 5/98 17,311 18,542 5/99 22,309 22,445 5/00 24,401 24,797 5/01 19,506 22,181 5/02 16,779 19,109 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. Returns shown do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares. 31 STI CLASSIC VALUE INCOME STOCK FUND ----------------------------------- The STI Classic Value Income Stock 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 business momentum which can cause an upward revaluation in the individual security. Our process seeks dividend-paying stocks that are trading at the lower end of historical valuation ranges. The companies identified for focus are in the midst of fundamental change that we expect will reignite investor interest. 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 had relatively good performance for the twelve month period ended May 31, 2002, with a -3.7% return on Trust Shares versus -15.4% for the S&P 500/Barra Value Index and -5.6% for the Russell 1000 Value Index. The Fund's strict and rigorous application of our Value methodology certainly benefited performance over the last year as investors continued being concerned with the risk and valuations of many more speculative growth stocks. Of particular benefit were stocks in the MATERIALS sector which responded quite favorably to the very aggressive monetary policy stimulus over the last year, and ENERGY stocks where geopolitical tensions kept oil prices higher than demand would otherwise suggest. The Fund is currently overweighted in Industrial stocks where valuations are reasonable, balance sheets are strong and operating leverage should be significant when economic activity fully recovers. The Fund is underweighted in Utilities where relative earnings growth should be the weakest and concerns over power trading cast a pall over the whole industry. It is also interesting to note that dividends are starting to garner increased investor attention these days in light of Enron's troubles and the greater uncertainty surrounding corporate profits. With nearly 400 companies restating earnings in the past three years, investors may be starting to demand more tangible proof of a company's earnings power. The Fund's primary investment philosophy is anchored to this very belief that dividend policies offer the solid evidence that investors seek. The Fund's portfolio yield continues to be consistently above that of the S&P 500/Barra Value Index and its peer group, indicating continued attention to maintaining a pure Value discipline. /s/Mills A. Riddick Mills A. Riddick, CFA Portfolio Manager 32 TRUST SHARES AVERAGE ANNUAL TOTAL RETURNS (PERIODS ENDED MAY 31, 2002) Annualized Cumulative Inception Inception One Year 3 Years 5 Years 10 Years* to Date* to Date* -3.68% -0.56% 6.11% 11.76% 12.93% 361.91% Without load [Chart Omitted] [Plot Points follow] STI Classic Value S&P 500/BARRA Income Stock Fund, Value Trust Shares Index 5/31/92 10,000 10,000 5/93 11,042 11,598 5/94 12,144 12,461 5/95 14,459 14,588 5/96 18,494 18,432 5/97 22,596 23,125 5/98 27,816 29,812 5/99 30,912 33,715 5/00 27,660 34,585 5/01 31,557 37,050 5/02 30,396 31,341 INVESTOR SHARES AVERAGE ANNUAL TOTAL RETURNS (PERIODS ENDED MAY 31, 2002) Annualized Cumulative Inception Inception One Year 3 Years 5 Years 10 Years* to Date* to Date* -4.14% -0.97% 5.70% 11.35% 12.60% 345.09% Without load -7.73% -2.22% 4.90% 10.92% 12.25% 328.29% With load [Chart Omitted] [Plot Points follow] STI Classic Value S&P 500/BARRA Income Stock Fund, Value Investor Shares Index 5/31/92 9,625 10,000 5/93 10,623 11,598 5/94 11,610 12,461 5/95 13,782 14,588 5/96 17,557 18,432 5/97 21,365 23,125 5/98 26,217 29,812 5/99 29,025 33,715 5/00 25,882 34,585 5/01 29,410 37,050 5/01 28,192 31,341 FLEX SHARES AVERAGE ANNUAL TOTAL RETURNS (PERIODS ENDED MAY 31, 2002) Annualized Cumulative Inception Inception One Year 3 Years 5 Years 10 Years* to Date* to Date* -4.82% -1.68% 4.93% 10.90% 12.24% 327.55% Without load -6.73% With load [Chart Omitted] [Plot Points follow] STI Classic Value S&P 500/BARRA Income Stock Fund, Value Flex Shares Index 5/92 10,000 10,000 5/93 11,042 12,461 5/94 12,144 14,588 5/95 14,459 18,432 5/96 18,293 23,125 5/97 22,118 29,812 5/98 26,931 33,715 5/99 29,600 34,585 5/00 26,196 37,050 5/01 29,562 31,341 5/02 28,137 31,341 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. Returns shown do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares. 33 STI CLASSIC VANTAGE FUND ------------------------ The Vantage Fund ("the Fund") establishes long and short positions primarily in common stocks of U.S. companies. Using fundamental analysis, the Adviser buys stocks "long" that it believes will perform better than their peers, and sells stocks "short" that it believes will underperform their peers. A long position is established when the Adviser purchases a stock outright, and a short position is established when the Adviser sells a security that it has borrowed. Short positions may be used to partially hedge long positions or to garner returns from declines in security prices. The Adviser may also seek to enhance returns by purchasing securities with borrowed money. This investment technique, known as "leveraging," increases investment risk, but also increases investment opportunity. The Fund may borrow up to 33.33% of its assets (including the amount borrowed). From time to time, the Adviser may take defensive positions in cash or short-term debt securities. The Fund would initiate such defensive positions when the Adviser is concerned that short-term market volatility is unusually high or while the Adviser is reviewing and assessing the financial consequences of significant economic events. The Fund's investment process originates with bottom-up analysis in which it analyzes the key drivers of companies and their stocks. This type of analysis enhances the Adviser's ability to evaluate the competitive advantages and market sustainability of individual companies. The Fund also continuously assesses the macroeconomic environment in order to identify influential industry, economic and financial market trends. If after conducting rigorous analysis the Adviser determines certain macro trends are significant, sustainable and under-appreciated by market participants, the Fund will take positions in companies whose key drivers stand to be impacted directly or indirectly by the identified trends. As of May 31, 2002, the Vantage Fund (Trust shares) has returned -3.5% since its inception on November 30, 2001. The Wilshire 5000 Index and the Lehman U.S. Government/Credit Index have returned -3.4% and +1.6% respectively during the same period. /s/Alan Kelley Alan Kelley Portfolio Manager 34 TRUST SHARES(1) AVERAGE ANNUAL TOTAL RETURNS (PERIODS ENDED MAY 31, 2002) Cumulative Inception to Date -3.50% [Chart Omitted] [Plot Points follow] STI Classic Wilshire Lehman U.S. Vintage Fund, 500 Government/ Trust Shares Index Credit Index 11/30/01 10,000 10,000 10,000 5/02 9,669 9,661 10,158 FLEX SHARES(2) AVERAGE ANNUAL TOTAL RETURNS (PERIODS ENDED MAY 31, 2002) Cumulative Inception to Date -3.60% Without load -5.53% With load [Chart Omitted] [Plot Points follow] STI Classic Wilshire Lehman U.S. Vintage Fund, 500 Government/ Flex Shares Index Credit Index 11/30/01 10,000 10,000 10,000 5/02 9,467 9,661 10,158 Past performance is no indication of future performance. The Funds' comparative benchmarks do not include the annual operating expenses incurred by the Fund. (1) Trust Shares were offered beginning on November 30, 2001. (2) Flex Shares were offered beginning on March 11, 2002. Flex Shares performance for the periods 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. Returns shown do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares. 35 STATEMENT OF NET ASSETS STI CLASSIC EQUITY FUNDS MAY 31, 2002 BALANCED FUND ------------------------------------------------------------------------------- SHARES VALUE (000) ------------------------------------------------------------------------------- COMMON STOCK (50.4%) BASIC MATERIALS (0.5%) Rohm & Haas 45,000 $ 1,696 -------- CAPITAL GOODS (5.7%) General Dynamics 23,000 2,314 General Electric 72,500 2,258 Illinois Tool Works 42,000 2,983 Lockheed Martin 84,000 5,212 Masco 78,000 2,079 Tyco International 166,000 3,644 -------- 18,490 -------- COMMUNICATION SERVICES (0.9%) COX Communications, Cl A* 29,400 989 Nokia OYJ ADR 150,000 2,082 -------- 3,071 -------- CONSUMER CYCLICALS (8.7%) Bed Bath & Beyond* 51,500 1,766 Best Buy* 47,700 2,204 Coach* 33,500 1,751 Family Dollar Stores 33,500 1,206 Gannett 27,000 2,047 Harley-Davidson 41,500 2,182 Home Depot 80,800 3,369 International Game Technology* 31,200 1,950 Kohl's* 31,000 2,325 Lowe's 90,000 4,244 Ltd Brands 70,500 1,480 McGraw-Hill 35,900 2,266 Office Depot* 78,500 1,435 -------- 28,225 -------- CONSUMER STAPLES (1.0%) Clorox 69,600 3,188 -------- ENERGY (2.0%) Anadarko Petroleum 50,000 2,537 Apache 38,000 2,116 BP ADR 33,800 1,726 -------- 6,379 -------- FINANCE (9.5%) AMBAC Financial Group 40,000 2,694 American Express 57,200 2,431 American International Group 41,100 2,752 Citigroup 98,000 4,232 Countrywide Credit Industry 29,500 1,455 Fifth Third Bancorp 24,600 1,603 Freddie Mac 70,400 4,615 ------------------------------------------------------------------------------- SHARES VALUE (000) ------------------------------------------------------------------------------- FINANCE--CONTINUED Marsh & McLennan 27,500 $ 2,775 MBNA 58,000 2,100 SLM 66,200 6,387 -------- 31,044 -------- HEALTH CARE (7.4%) Allergan 17,900 1,129 Guidant* 90,000 3,600 Health Management Associates, Cl A* 123,000 2,533 Johnson & Johnson 45,600 2,797 King Pharmaceuticals* 52,000 1,407 Lincare Holdings* 32,041 951 Pfizer 110,700 3,830 Tenet Healthcare* 28,000 2,086 UnitedHealth Group 32,000 2,906 Wellpoint Health Networks* 37,400 2,774 -------- 24,013 -------- SERVICES (1.9%) Apollo Group, Cl A* 67,200 2,317 Omnicom Group 27,000 2,332 Sabre Holdings* 42,500 1,674 -------- 6,323 -------- TECHNOLOGY (11.0%) Adobe Systems 72,000 2,599 Affiliated Computer Services, Cl A* 40,500 2,254 BMC Software* 145,000 2,452 Cisco Systems* 135,000 2,130 Electronic Data Systems 66,700 3,523 Intel 138,500 3,825 Lexmark International* 56,800 3,547 Micron Technology* 128,000 3,018 Microsoft* 88,000 4,480 Network Appliance* 77,700 1,011 Sun Microsystems* 295,000 2,033 Texas Instruments 94,300 2,704 Xilinx* 62,800 2,214 -------- 35,790 -------- TRANSPORTATION (1.8%) Norfolk Southern 119,200 2,524 Union Pacific 53,500 3,276 -------- 5,800 -------- Total Common Stock (Cost $148,806) 164,019 -------- 36 -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- FACE AMOUNT (000) VALUE (000) -------------------------------------------------------------------------------- U.S. TREASURY OBLIGATIONS (8.3%) U.S. Treasury Bonds 7.500%, 11/15/16 $12,075 $ 14,334 6.250%, 05/15/30 8,325 8,911 U.S. Treasury Note 4.375%, 05/15/07 3,750 3,752 -------- Total U.S. Treasury Obligations (Cost $26,219) 26,997 -------- U.S. GOVERNMENT AGENCY OBLIGATIONS (1.8%) FHLB 4.125%, 01/14/05 3,725 3,760 FNMA 7.125%, 01/15/30 2,000 2,214 -------- Total U.S. Government Agency Obligations (Cost $5,843) 5,974 -------- U.S. GOVERNMENT MORTGAGE-BACKED OBLIGATIONS (8.2%) FNMA 6.500%, 02/01/17 1,924 1,991 GNMA 8.500%, 04/15/31 4,199 4,530 8.000%, 08/15/31 to 09/15/31 12,543 13,400 6.000%, 12/15/31 6,623 6,585 -------- Total U.S. Government Mortgage-Backed Obligations (Cost $26,091) 26,506 -------- CORPORATE OBLIGATIONS (19.8%) COMMUNICATION SERVICES (2.5%) AT&T Wireless Services 8.125%, 05/01/12 1,450 1,413 Qwest Corp (B) 8.875%, 03/15/12 1,306 1,299 Sprint Capital 5.875%, 05/01/04 1,200 1,146 Verizon New Jersey 5.875%, 01/17/12 2,500 2,408 WorldCom++ 8.250%, 05/15/31 1,775 763 6.500%, 05/15/04 1,625 1,186 -------- 8,215 -------- CONSUMER CYCLICALS (1.6%) May Department Stores 7.900%, 10/15/07 1,650 1,808 Viacom 5.625%, 05/01/07 1,450 1,466 Walt Disney Company, MTN 5.500%, 12/29/06 1,750 1,770 -------- 5,044 -------- ------------------------------------------------------------------------------- FACE AMOUNT (000) VALUE (000) ------------------------------------------------------------------------------- CONSUMER STAPLES (2.1%) Coca-Cola Enterprises 8.500%, 02/01/22 $ 1,250 $ 1,492 5.375%, 08/15/06 1,200 1,223 General Mills 6.000%, 02/15/12 1,750 1,736 Philip Morris 7.500%, 04/01/04 2,200 2,338 -------- 6,789 -------- ENERGY (0.8%) Conoco 6.950%, 04/15/29 1,200 1,233 Duke Energy 6.250%, 01/15/12 700 708 Kerr-McGee 5.875%, 09/15/06 800 810 -------- 2,751 -------- FINANCE (10.9%) AON 6.900%, 07/01/04 1,500 1,573 Boeing Capital 5.650%, 05/15/06 1,200 1,224 Capital One 6.500%, 07/30/04 1,150 1,164 Countrywide Home Loan, Ser F, MTN 6.510%, 02/11/05 2,250 2,357 Donaldson, Lufkin & Jenrette, MTN 6.150%, 05/04/04 1,150 1,196 Ford Credit 6.875%, 02/01/06 1,900 1,960 General Electric Capital, Ser A, MTN 6.750%, 03/15/32 3,350 3,307 General Motors Acceptance 8.000%, 11/01/31 1,925 2,061 Goldman Sachs Group 6.600%, 01/15/12 2,500 2,546 Household Finance 5.750%, 01/30/07 1,150 1,146 International Lease Finance, Ser M, MTN 5.950%, 06/06/05 2,175 2,240 JP Morgan Chase 5.350%, 03/01/07 1,250 1,258 Merrill Lynch, Ser B, MTN 5.350%, 06/15/04 2,600 2,659 Morgan Stanley Dean Witter 7.250%, 04/01/32 1,100 1,128 6.750%, 04/15/11 1,325 1,366 37 -------------------------------------------------------------------------------- STATEMENT OF NET ASSETS -------------------------------------------------------------------------------- STI CLASSIC EQUITY FUNDS MAY 31, 2002 BALANCED FUND--CONCLUDED ------------------------------------------------------------------------------- FACE AMOUNT (000) VALUE (000) ------------------------------------------------------------------------------- FINANCE--CONTINUED Salomon Smith Barney Holdings 6.500%, 02/15/08 $ 3,500 $ 3,649 Texaco Capital 5.500%, 01/15/09 1,400 1,407 Wachovia 6.800%, 06/01/05 1,000 1,076 Washington Mutual Bank 6.875%, 06/15/11 2,000 2,103 -------- 35,420 -------- HEALTH CARE (0.7%) Cardinal Health 6.750%, 02/15/11 2,000 2,115 -------- RAILROADS (0.3%) Norfolk Southern 6.000%, 04/30/08 1,100 1,122 -------- TECHNOLOGY (0.9%) Computer Sciences 7.500%, 08/08/05 2,775 3,000 -------- Total Corporate Obligations (Cost $64,590) 64,456 -------- ASSET-BACKED OBLIGATION (0.9%) General Electric Commercial Mortgage, Series 2002-1a, Cl A3 6.269%, 12/10/35 2,950 3,027 -------- Total Asset-Backed Obligation (Cost $2,965) 3,027 -------- REPURCHASE AGREEMENT (10.5%) UBS Warburg 1.770%, dated 05/31/02, matures 06/03/02, repurchase price $34,100,305 (collateralized by U.S. Treasury Bill: total market value $34,778,866) (C) 34,095 34,095 -------- Total Repurchase Agreement (Cost $34,095) 34,095 -------- Total Investments (99.9%) (Cost $308,609) 325,074 -------- ------------------------------------------------------------------------------- VALUE (000) ------------------------------------------------------------------------------- OTHER ASSETS AND LIABILITIES, NET (0.1%) Investment Advisory Fee Payable $ (253) Administration Fee Payable (19) Distribution Fee Payable (60) Custodian Fee Payable (1) Other Assets and Liabilities 763 -------- Total Other Assets and Liabilities, Net 430 -------- NET ASSETS: Paid in Capital -- Trust Shares (unlimited authorization -- no par value) based on 19,832,572 outstanding shares of beneficial interest 221,804 Paid in Capital -- Investor Shares (unlimited authorization -- no par value) based on 736,928 outstanding shares of beneficial interest 8,111 Paid in Capital -- Flex Shares (unlimited authorization -- no par value) based on 6,201,311 outstanding shares of beneficial interest 79,093 Undistributed net investment income 979 Accumulated net realized loss on investments (948) Net unrealized appreciation on investments 16,465 -------- Total Net Assets (100.0%) $325,504 ======== Net Asset Value, Offering and Redemption Price Per Share -- Trust Shares $12.18 ======== Net Asset Value and Redemption Price Per Share -- Investor Shares $12.24 ======== Maximum Offering Price Per Share -- Investor Shares ($12.24 / 96.25%) $12.72 ======== Net Asset Value, Offering and Redemption Price Per Share -- Flex Shares (1) $12.07 ======== THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS. FOR DESCRIPTIONS OF ABBREVIATIONS, PLEASE SEE PAGE 74. 38 -------------------------------------------------------------------------------- CAPITAL APPRECIATION FUND ------------------------------------------------------------------------------- SHARES VALUE (000) ------------------------------------------------------------------------------- COMMON STOCK (98.0%) BASIC MATERIALS (0.8%) Rohm & Haas 312,500 $ 11,775 ---------- CAPITAL GOODS (11.2%) General Dynamics 191,500 19,265 General Electric 657,000 20,459 Illinois Tool Works 365,000 25,926 Lockheed Martin 784,500 48,678 Masco 654,300 17,444 Tyco International 1,510,000 33,144 ---------- 164,916 ---------- COMMUNICATION SERVICES (1.8%) COX Communications, Cl A* 247,800 8,336 Nokia OYJ ADR 1,335,000 18,530 ---------- 26,866 ---------- CONSUMER CYCLICALS (16.5%) Bed Bath & Beyond* 464,000 15,915 Best Buy* 420,000 19,404 Coach* 305,000 15,939 Family Dollar Stores 149,500 5,382 Gannett 196,000 14,857 Harley-Davidson 351,600 18,487 Home Depot 763,700 31,839 International Game Technology* 304,700 19,044 Kohl's* 288,500 21,638 Lowe's 800,000 37,728 Ltd Brands 550,000 11,545 McGraw-Hill 303,000 19,128 Office Depot* 712,000 13,015 ---------- 243,921 ---------- CONSUMER STAPLES (2.0%) Clorox 633,000 28,991 ---------- ENERGY (3.9%) Anadarko Petroleum 420,000 21,315 Apache 354,000 19,711 BP ADR 318,800 16,281 ---------- 57,307 ---------- FINANCE (18.9%) AMBAC Financial Group 380,000 25,597 American Express 454,200 19,308 American International Group 390,000 26,118 Citigroup 895,000 38,646 Countrywide Credit Industry 280,000 13,807 Fifth Third Bancorp 234,200 15,263 Freddie Mac 645,800 42,332 ------------------------------------------------------------------------------- SHARES VALUE (000) ------------------------------------------------------------------------------- FINANCE--CONTINUED Marsh & McLennan 229,500 $ 23,157 MBNA 515,000 18,648 SLM 585,000 56,441 ---------- 279,317 ---------- HEALTH CARE (14.5%) Allergan 169,800 10,714 Guidant* 782,000 31,280 Health Management Associates, Cl A* 1,001,900 20,629 Johnson & Johnson 428,800 26,307 King Pharmaceuticals* 396,000 10,712 Lincare Holdings* 265,263 7,873 Pfizer 1,052,000 36,399 Tenet Healthcare* 250,000 18,625 UnitedHealth Group 289,000 26,241 Wellpoint Health Networks* 352,800 26,164 ---------- 214,944 ---------- SERVICES (3.6%) Apollo Group, Cl A* 631,500 21,774 Omnicom Group 211,500 18,267 Sabre Holdings* 347,500 13,692 ---------- 53,733 ---------- TECHNOLOGY (21.4%) Adobe Systems 533,500 19,259 Affiliated Computer Services, Cl A* 327,800 18,239 BMC Software* 1,350,000 22,829 Cisco Systems* 1,178,000 18,589 Electronic Data Systems 589,500 31,137 Intel 1,225,000 33,835 Lexmark International* 505,000 31,537 Micron Technology* 1,137,000 26,810 Microsoft* 857,000 43,630 Network Appliance* 707,000 9,198 Sun Microsystems* 2,500,000 17,225 Texas Instruments 860,000 24,656 Xilinx* 550,000 19,393 ---------- 316,337 ---------- TRANSPORTATION (3.4%) Norfolk Southern 1,030,000 21,805 Union Pacific 466,400 28,562 ---------- 50,367 ---------- Total Common Stock (Cost $1,281,506) 1,448,474 ---------- 39 ------------------------------------------------------------------------------- STATEMENT OF NET ASSETS ------------------------------------------------------------------------------- STI CLASSIC EQUITY FUNDS MAY 31, 2002 CAPITAL APPRECIATION FUND--CONCLUDED ------------------------------------------------------------------------------- FACE AMOUNT (000) VALUE (000) ------------------------------------------------------------------------------- REPURCHASE AGREEMENT (1.9%) UBS Warburg 1.770%, dated 05/31/02, matures 06/03/02, repurchase price $28,460,806 (collateralized by U.S. Treasury Bill: total market value $29,027,130) (C) $28,457 $ 28,457 ---------- Total Repurchase Agreement (Cost $28,457) 28,457 ---------- Total Investments (99.9%) (Cost $1,309,963) 1,476,931 ---------- OTHER ASSETS AND LIABILITIES, NET (0.1%) Investment Advisory Fee Payable (1,430) Administration Fee Payable (87) Distribution Fee Payable (174) Custodian Fee Payable (6) Other Assets and Liabilities 3,289 -------- Total Other Assets and Liabilities, Net 1,592 -------- NET ASSETS: Paid in Capital -- Trust Shares (unlimited authorization -- no par value) based on 98,427,188 outstanding shares of beneficial interest 1,044,743 Paid in Capital -- Investor Shares (unlimited authorization -- no par value) based on 13,724,110 outstanding shares of beneficial interest 148,077 Paid in Capital -- Flex Shares (unlimited authorization -- no par value) based on 9,734,299 outstanding shares of beneficial interest 141,023 Accumulated net realized loss on investments (22,288) Net unrealized appreciation on investments 166,968 ---------- Total Net Assets (100.0%) $1,478,523 ========== Net Asset Value, Offering and Redemption Price Per Share -- Trust Shares $12.24 ========== Net Asset Value and Redemption Price Per Share -- Investor Shares $11.89 ========== Maximum Offering Price Per Share -- Investor Shares ($11.89 / 96.25%) $12.35 ========== Net Asset Value, Offering and Redemption Price Per Share -- Flex Shares (1) $11.40 ========== THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS. FOR DESCRIPTIONS OF ABBREVIATIONS, PLEASE SEE PAGE 74. 40 ------------------------------------------------------------------------------- GROWTH AND INCOME FUND ------------------------------------------------------------------------------- SHARES VALUE (000) ------------------------------------------------------------------------------- COMMON STOCK (99.0%) BASIC MATERIALS (5.4%) E.I. du Pont de Nemours 230,000 $ 10,580 International Flavors & Fragrances 325,000 11,069 International Paper 650,000 28,015 -------- 49,664 -------- CAPITAL GOODS (14.8%) Boeing 375,000 15,994 Cooper Industries, Cl A 950,000 41,201 Emerson Electric 300,000 17,355 General Electric 250,000 7,785 Honeywell International 600,000 23,520 Ingersoll-Rand, Cl A 250,000 12,587 Precision Castparts 250,000 8,778 Rockwell Automation 115,110 2,526 United Technologies 100,000 6,887 -------- 136,633 -------- COMMUNICATION SERVICES (3.8%) AT&T 800,000 9,576 SBC Communications 350,000 12,001 Verizon Communications 325,000 13,975 -------- 35,552 -------- CONSUMER CYCLICALS (12.5%) AOL Time Warner* 450,000 8,415 Brunswick 350,000 9,310 Gannett 150,000 11,370 Hasbro 750,000 11,475 Johnson Controls 100,000 8,806 Lowe's 150,000 7,074 McDonald's 500,000 14,970 Newell Rubbermaid 700,000 23,905 Target 275,000 11,399 Walt Disney 400,000 9,164 -------- 115,888 -------- CONSUMER STAPLES (7.5%) Hershey Foods 50,000 3,336 HJ Heinz 450,000 18,284 Kimberly-Clark 100,000 6,492 McCormick 350,000 9,191 PepsiCo 175,000 9,097 Procter & Gamble 100,000 8,955 Sara Lee 650,000 13,702 -------- 69,057 -------- ------------------------------------------------------------------------------- SHARES VALUE (000) ------------------------------------------------------------------------------- ENERGY (6.6%) ChevronTexaco 250,000 $ 21,813 Conoco 700,000 18,816 Exxon Mobil 500,000 19,965 -------- 60,594 -------- FINANCE (20.1%) American International Group 150,000 10,045 Bank of America 125,000 9,476 Bank One 450,000 18,283 Berkshire Hathaway, Cl B* 10,000 24,720 Citigroup 400,000 17,272 Fannie Mae 175,000 14,002 Fifth Third Bancorp 200,000 13,034 Jefferson-Pilot 375,000 17,854 Merrill Lynch 350,000 14,249 MGIC Investment 150,000 10,917 UnumProvident 600,000 15,180 Wells Fargo 400,000 20,960 -------- 185,992 -------- HEALTH CARE (8.8%) Abbott Laboratories 300,000 14,250 Barr Laboratories* 175,000 11,644 Bristol-Myers Squibb 500,000 15,560 C.R. Bard 150,000 8,265 Johnson & Johnson 150,000 9,203 Merck 225,000 12,848 Oxford Health Plans* 200,000 9,640 -------- 81,410 -------- TECHNOLOGY (14.8%) Cisco Systems* 350,000 5,523 Computer Associates International 100,000 1,736 Computer Sciences* 200,000 9,474 DST Systems* 200,000 9,882 Electronic Data Systems 150,000 7,923 Intel 600,000 16,572 International Business Machines 125,000 10,056 Lexmark International* 300,000 18,735 Microsoft* 300,000 15,273 Motorola 1,000,000 15,990 Sun Microsystems* 1,700,000 11,713 Texas Instruments 500,000 14,335 -------- 137,212 -------- TRANSPORTATION (1.4%) Norfolk Southern 600,000 12,702 -------- 41 -------------------------------------------------------------------------------- STATEMENT OF NET ASSETS/SCHEDULE OF INVESTMENTS -------------------------------------------------------------------------------- STI CLASSIC EQUITY FUNDS MAY 31, 2002 GROWTH AND INCOME FUND--CONCLUDED -------------------------------------------------------------------------------- SHARES VALUE (000) -------------------------------------------------------------------------------- UTILITIES (3.3%) Duke Energy 650,000 $ 20,806 Exelon 175,000 9,361 -------- 30,167 -------- Total Common Stock (Cost $819,524) 914,871 -------- CASH EQUIVALENT (1.1%) SEI Daily Income Trust Prime Obligation Fund, Cl A 10,199,658 10,200 -------- Total Cash Equivalent (Cost $10,200) 10,200 -------- Total Investments (100.1%) (Cost $829,724) 925,071 -------- OTHER ASSETS AND LIABILITIES, NET (-0.1%) Investment Advisory Fee Payable (709) Administration Fee Payable (54) Distribution Fee Payable (65) Custodian Fee Payable (4) Other Assets and Liabilities (222) -------- Total Other Assets and Liabilities, Net (1,054) -------- NET ASSETS: Paid in Capital -- Trust Shares (unlimited authorization -- no par value) based on 57,441,680 outstanding shares of beneficial interest 695,883 Paid in Capital -- Investor Shares (unlimited authorization -- no par value) based on 2,644,758 outstanding shares of beneficial interest 30,862 Paid in Capital -- Flex Shares (unlimited authorization -- no par value) based on 6,930,614 outstanding shares of beneficial interest 104,326 Undistributed net investment income 1,255 Accumulated net realized loss on investments (3,656) Net unrealized appreciation on investments 95,347 -------- Total Net Assets (100.0%) $924,017 ======== -------------------------------------------------------------------------------- VALUE (000) -------------------------------------------------------------------------------- Net Asset Value, Offering and Redemption Price Per Share-- Trust Shares $13.80 ======== Net Asset Value and Redemption Price Per Share-- Investor Shares $13.91 ======== Maximum Offering Price Per Share-- Investor Shares ($13.91 / 96.25%) $14.45 ======== Net Asset Value, Offering and Redemption Price Per Share-- Flex Shares (1) $13.66 ======== THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS. FOR DESCRIPTIONS OF ABBREVIATIONS, PLEASE SEE PAGE 74. 42 -------------------------------------------------------------------------------- INFORMATION AND TECHNOLOGY FUND -------------------------------------------------------------------------------- SHARES VALUE (000) -------------------------------------------------------------------------------- COMMON STOCK (93.7%) COMMUNICATION SERVICES (17.1%) American Tower, Cl A* 62,820 $ 239 AT&T Wireless Services* 119,738 971 COX Communications, Cl A* 34,824 1,172 Crown Castle International* 46,440 209 Foundry Networks* 127,824 842 Nextel Communications, Cl A* 162,123 788 Qualcomm* 33,419 1,057 Sprint-PCS Group* 81,520 851 Turkcell Iletisim Hizmet ADR* 70,000 1,001 WorldCom Group* 120,000 199 ------- 7,329 ------- COMPUTER SOFTWARE (10.0%) Amdocs* 83,620 1,555 Apple Computer* 45,062 1,050 Electronic Arts* 19,082 1,221 Riverstone Networks* 131,946 466 ------- 4,292 ------- CONSUMER CYCLICALS (7.8%) Alloy* 31,120 417 AOL Time Warner* 110,000 2,057 Ashahi Glass ADR 13,300 885 ------- 3,359 ------- ENERGY (0.4%) Core Laboratories* 11,662 164 ------- FINANCE (9.2%) American Express 35,760 1,520 First Tennessee National 20,003 779 Franklin Resources 7,000 305 SLM 13,628 1,315 ------- 3,919 ------- HEALTH CARE (2.1%) Eon Labs* 25,000 400 Laboratory Corporation of America Holdings* 10,000 491 ------- 891 ------- -------------------------------------------------------------------------------- SHARES VALUE (000) -------------------------------------------------------------------------------- SEMICONDUCTORS (14.1%) Analog Devices* 33,555 $ 1,229 Kla-Tencor* 20,742 1,081 LSI Logic* 130,000 1,482 Maxim Integrated Products* 17,638 812 Micrel* 11,852 248 Taiwan Semiconductor Manufacturing ADR* 11,758 195 United Microelectronics ADR* 118,694 1,009 ------- 6,056 ------- SERVICES (5.8%) Accenture, Cl A* 56,700 1,182 Getty Images* 39,210 1,318 ------- 2,500 ------- TECHNOLOGY (27.2%) Adobe Systems 50,282 1,815 Brocade Communications Systems* 52,413 1,030 Extreme Networks* 177,603 2,003 Hewlett-Packard 63,862 1,219 Integrated Circuit Systems* 47,098 982 JDS Uniphase* 44,335 156 Kopin* 98,997 767 Microchip Technology* 40,275 1,204 Motorola 114,600 1,833 Network Appliance* 25,000 325 RF Micro Devices* 21,466 352 ------- 11,686 ------- Total Common Stock (Cost $41,379) 40,196 ------- EXCHANGE TRADED FUND (2.4%) IShares MSCI Taiwan Index* 91,817 1,028 ------- Total Exchange Traded Fund (Cost $1,106) 1,028 ------- CLOSED-END FUND (0.3%) Templeton Dragon 15,300 144 ------- Total Closed-End Fund (Cost $131) 144 ------- Total Investments (96.4%) (Cost $42,616) $41,368 ======= THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS. FOR DESCRIPTIONS OF ABBREVIATIONS, PLEASE SEE PAGE 74. 43 SCHEDULE OF INVESTMENTS -------------------------------------------------------------------------------- STI CLASSIC EQUITY FUNDS MAY 31, 2002 INTERNATIONAL EQUITY FUND -------------------------------------------------------------------------------- SHARES VALUE (000) -------------------------------------------------------------------------------- FOREIGN COMMON STOCK (90.6%) AUSTRALIA (3.5%) Amcor 364,765 $ 1,869 Australia and New Zealand Banking Group 101,600 1,122 BHP Billiton 76,533 468 Challenger International* 513,779 855 Coles Myer 101,160 380 MIM Holdings 966,761 662 National Australia Bank 89,039 1,824 News 84,467 602 TABCORP Holdings 179,302 1,232 Telstra 140,627 377 -------- 9,391 -------- BELGIUM (0.9%) Fortis 103,900 2,364 -------- DENMARK (0.4%) Danske Bank 52,900 971 -------- FINLAND (1.4%) Nokia Oyj 160,500 2,294 Tietoenator Oyj 61,380 1,491 -------- 3,785 -------- FRANCE (10.1%) Alcatel, Cl A 66,071 784 Aventis 33,360 2,322 BNP Paribas 75,986 4,277 Cie de Saint-Gobain 13,177 2,339 Dassault Systemes 28,287 1,137 France Telecom 22,450 436 Lafarge 39,245 4,004 Peugeot 24,883 1,314 Suez 26,447 752 Technip-Coflexip 17,331 2,097 Thomson Multimedia* 86,985 2,443 TotalFinaElf 24,212 3,775 Vivendi Universal 31,987 1,004 -------- 26,684 -------- GERMANY (6.6%) Allianz 8,250 1,834 BASF 33,000 1,529 Bayer 22,000 715 Bayerische Hypo-und Vereinsbank 30,000 1,057 Bayerische Motoren Werke 54,300 2,324 Buderus 51,767 1,303 Deutsche Bank 38,200 2,727 -------------------------------------------------------------------------------- SHARES VALUE (000) -------------------------------------------------------------------------------- GERMANY--CONTINUED Deutsche Telekom 81,400 $ 903 SAP 13,175 1,401 Siemens 50,100 3,141 Stinnes* 20,453 525 -------- 17,459 -------- HONG KONG (1.2%) Esprit Holdings 512,000 955 Hang Lung Properties 593,000 681 Hong Kong Electric Holdings 118,500 460 Hutchison Whampoa 136,700 1,144 -------- 3,240 -------- IRELAND (0.0%) Bank of Ireland 2 -- -------- ITALY (4.2%) ENI-Ente Nazionale Idrocarburi 126,614 1,928 IntesaBci 904,151 2,678 Parmalat Finanziaria 807,116 2,488 Saipem 348,988 2,361 Telecom Italia 212,040 1,704 -------- 11,159 -------- JAPAN (20.7%) Aiful 11,250 842 Asahi Breweries 111,000 1,058 Asahi Glass 70,000 466 Canon 68,100 2,623 Chubu Electric Power 87,100 1,491 Denso 59,100 929 Eisai 32,400 877 Fanuc 20,400 1,055 Fuji Photo Film 54,000 1,697 Futaba 40,700 1,276 Hitachi 207,000 1,568 Honda Motor 54,900 2,345 Itochu 138,000 525 Kao 67,000 1,568 Matsushita Electric Industrial 95,000 1,324 Millea Holdings* 46 397 Minebea 189,000 1,237 Mitsubishi Heavy Industries 330,000 1,157 Mitsubishi Tokyo Financial Group 275 2,138 Mitsui Fudosan 111,000 1,033 Nippon Telegraph & Telephone 273 1,247 Nissan Motor 204,000 1,448 Nitto Denko 50,800 1,535 NKK* 1,260,000 1,218 44 -------------------------------------------------------------------------------- SHARES VALUE (000) -------------------------------------------------------------------------------- JAPAN--CONTINUED Nomura Holdings 56,000 $ 902 NTT Docomo 595 1,611 Olympus Optical 93,000 1,379 Ricoh 125,000 2,448 SKY Perfect Communications* 442 438 Sony 47,400 2,750 Sumitomo Chemical 596,000 2,757 Sumitomo Mitsui Banking 328,000 1,837 Taisei 300,000 749 Takeda Chemical Industries 35,000 1,577 Tokyo Electron 8,000 540 Toshiba* 288,000 1,218 Toyota Motor 91,800 2,508 UFJ Holdings 313 933 West Japan Railway 113 508 Yamada Denki 12,300 1,118 Yasuda Fire & Marine Insurance 84,000 555 -------- 54,882 -------- NETHERLANDS (5.8%) ABN Amro Holding 113,454 2,193 Akzo Nobel 43,865 1,977 Draka Holding 15,071 389 Fortis* 32,130 726 IHC Caland 47,589 2,783 ING Groep 81,076 2,145 Koninklijke Philips Electronics 65,821 2,050 United Services Group 143,996 3,081 -------- 15,344 -------- NORWAY (0.7%) Norske Skogindustrier 62,850 1,192 Telenor 160,900 613 -------- 1,805 -------- SINGAPORE (1.0%) DBS Group Holdings 80,400 634 Keppel 837,100 1,902 -------- 2,536 -------- SOUTH KOREA (1.3%) Hana Bank 94,490 1,416 Hyundai Motor 25,460 844 Samsung Electronics 4,060 1,144 -------- 3,404 -------- SPAIN (3.2%) Altadis 55,091 1,185 Banco Santander Central Hispano 125,733 1,162 Sociedad General de Aguas de Barcelona 42,536 544 -------------------------------------------------------------------------------- SHARES VALUE (000) -------------------------------------------------------------------------------- SPAIN--CONTINUED Sol Melia* 234,569 $ 1,760 Telefonica* 244,345 2,586 Union Electrica Fenosa 61,048 1,097 -------- 8,334 -------- SWEDEN (1.8%) Autoliv 65,600 1,532 Sandvik 93,000 2,149 Swedish Match 28,200 224 Telefonaktiebolaget LM Ericsson* 423,500 948 -------- 4,853 -------- SWITZERLAND (4.5%) Credit Suisse Group* 65,726 2,427 Nestle 14,138 3,433 Novartis 111,817 4,803 STMicroelectronics 40,728 1,122 -------- 11,785 -------- TAIWAN (0.2%) Taiwan Semiconductor Manufacturing ADR* 38,100 632 -------- UNITED KINGDOM (23.1%) ARM Holdings* 74,412 204 AstraZeneca 43,417 1,910 Balfour Beatty 546,841 1,936 Barclays 181,573 1,567 BHP Billiton 320,510 1,829 BP 782,984 6,702 British American Tobacco 139,507 1,672 British Sky Broadcasting* 43,197 465 BT Group* 392,388 1,609 Cobham* 46,673 770 Diageo 221,697 2,790 EasyJet* 136,290 946 Game Group* 522,791 1,025 George Wimpey 141,999 600 GlaxoSmithKline 180,101 3,700 HBOS 146,317 1,771 Kidde* 708,495 977 Lloyds TSB Group 216,495 2,344 Lonmin* 16,909 305 Marks & Spencer Group 199,445 1,106 Mfi Furniture* 164,963 351 Misys 47,751 156 Northern Rock 363,256 3,830 P&O Princess Cruises 202,981 1,328 Powderject Pharmaceuticals* 61,073 388 Prudential 255,212 2,489 Rank Group 258,409 1,079 45 -------------------------------------------------------------------------------- SCHEDULE OF INVESTMENTS -------------------------------------------------------------------------------- STI CLASSIC EQUITY FUNDS MAY 31, 2002 INTERNATIONAL EQUITY FUND--CONCLUDED -------------------------------------------------------------------------------- SHARES VALUE (000) -------------------------------------------------------------------------------- UNITED KINGDOM--CONTINUED Reed Elsevier 169,922 $ 1,633 Rentokil Initial 271,518 1,104 Royal Bank of Scotland Group 153,278 4,463 Shell Transport & Trading 422,686 3,278 Signet Group 358,136 635 Skyepharma* 1,155,771 1,336 Tesco 515,892 1,948 Vodafone Group 1,920,386 2,901 -------- 61,147 -------- Total Foreign Common Stock (Cost $238,519) 239,775 -------- EXCHANGE TRADED FUND (3.4%) UNITED STATES (3.4%) IShares MSCI EAFE Index 74,000 9,071 -------- Total Exchange Traded Fund (Cost $9,076) 9,071 -------- Total Investments (94.0%) (Cost $247,595) $248,846 ======== At May 31, 2002, sector diversification of the Fund was as follows (Unaudited): % OF VALUE SECTOR DIVERSIFICATION NET ASSETS (000) ---------------------------- -------------- ---------- FOREIGN COMMON STOCK Banking 16.7% $44,461 Diversified Operations 7.0 18,432 Oil &Gas 6.8 18,044 Pharmaceuticals 6.4 16,913 Food, Beverage and Tobacco 6.1 16,094 Construction Materials 5.8 15,374 Electronics 5.3 13,922 Automotive 5.0 13,244 Telecommunications 3.8 9,978 Telephone 3.5 9,327 Chemicals 3.4 8,981 Audio/Video 2.8 7,494 Insurance 2.8 7,420 Consumer Products 2.4 6,488 Financial Services 2.1 5,680 Computers 1.6 4,185 Retail 1.4 3,629 Manufacturing 1.4 3,611 Marine Services 1.1 2,783 Entertainment 1.0 2,560 Real Estate 0.9 2,349 Transportation 0.7 1,979 Hotels/Motels 0.7 1,760 Cosmetics & Toiletries 0.6 1,568 Semi-conductors 0.4 1,172 Distribution 0.4 955 Aerospace/Defense 0.3 770 Multi Media 0.2 602 ----- ------- TOTAL FOREIGN COMMON STOCK 90.6 239,775 TOTAL EXCHANGE TRADED FUND 3.4 9,071 ----- ------- TOTAL INVESTMENTS 94.0 248,846 OTHER ASSETS AND LIABILITIES, NET 6.0 15,984 ----- ------- TOTAL NET ASSETS 100.0% $264,830 ====== ======== THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS. FOR DESCRIPTIONS OF ABBREVIATIONS, PLEASE SEE PAGE 74. 46 -------------------------------------------------------------------------------- INTERNATIONAL EQUITY INDEX FUND -------------------------------------------------------------------------------- SHARES VALUE (000) -------------------------------------------------------------------------------- FOREIGN COMMON STOCK (97.6%) AUSTRALIA (2.6%) Amcor 27,332 $ 140 AMP 35,219 337 Australia and New Zealand Banking Group 50,820 561 Australian Gas Light 13,624 76 BHP Billiton 131,905 806 Brambles Industries 34,409 177 Coca-Cola Amatil 14,666 50 Cochlear 1,872 40 Coles Myer 39,978 150 Commonwealth Bank of Australia 35,707 677 Computershare 15,777 18 CSL 5,651 118 CSR 33,369 124 Foster's Brewing Group 72,647 193 General Property Trust 67,376 106 Lend Lease 13,894 81 Macquarie Bank 7,077 130 Mayne Nickless 28,820 70 Mirvac Group 22,018 52 National Australia Bank 46,404 950 News 52,233 373 QBE Insurance Group 19,945 83 Rio Tinto 11,085 220 Santos 22,071 78 Southcorp Holdings 22,241 74 Stockland Trust Group 29,072 76 Suncorp-Metway 18,675 132 TABCORP Holdings 5,323 37 Telstra 66,388 178 Wesfarmers 12,862 210 Westfield Holdings 15,060 136 Westfield Trust* 71,766 137 Westpac Banking 55,653 521 WMC 39,530 216 Woodside Petroleum 16,637 132 Woolworths 37,304 275 -------- 7,734 -------- AUSTRIA (1.5%) Best Water Technology 5,727 138 Boehler-Uddeholm 5,345 248 Erste Bank Der Oesterreichischen Sparkassen 10,094 728 Flughafen Wien 7,289 241 Mayr-Melnhof Karton 3,166 216 Oesterreichische Elektrizitaetswirtschafts, Cl A 4,939 403 OMV 8,357 750 Telekom Austria* 74,069 640 VA Technologie 6,248 196 -------------------------------------------------------------------------------- SHARES VALUE (000) -------------------------------------------------------------------------------- AUSTRIA--CONTINUED Voest-Alpine 12,208 $ 384 Wienerberger Baustoffindustr 24,109 433 -------- 4,377 -------- BELGIUM (1.7%) AGFA-Gevaert 6,497 106 Bekaert 1,345 63 Colruyt* 1,544 67 D'ieteren 257 54 Delhaize-Le Lion 6,847 354 Dexia 43,281 688 Electrabel 2,172 479 Fortis 66,287 1,508 Groupe Bruxelles Lambert 5,564 294 Interbrew 12,590 382 KBC Bancassurance Holding 6,429 246 Solvay 3,913 271 UCB 8,127 311 Umicore 1,468 61 -------- 4,884 -------- DENMARK (1.1%) D/S 1912, Cl B 25 170 Dampskibsselkabet Svendborg, Cl B 17 145 Danisco 5,459 194 Danske Bank 39,546 726 Group 4 Falck 6,236 219 ISS A/S* 4,078 214 Novo-Nordisk, Cl B 22,470 717 Novozymes, Cl B 5,170 114 TDC 11,700 306 Vestas Wind Systems 9,838 297 William Demant Holding* 2,757 76 -------- 3,178 -------- FINLAND (0.8%) Nokia Oyj 115,950 1,658 Sonera Oyj 17,388 65 Stora Enso Oyj, Cl R 19,306 281 Tietoenator Oyj 2,609 63 UPM-Kymmene Oyj 7,400 289 -------- 2,356 -------- FRANCE (9.5%) Accor 10,671 435 Air Liquide 4,722 747 Alcatel, Cl A 52,232 620 Alstom 10,947 138 Altran Technologies 3,626 179 Aventis 30,620 2,131 AXA 60,031 1,172 BNP Paribas 35,414 1,994 Bouygues 8,280 245 47 -------------------------------------------------------------------------------- SCHEDULE OF INVESTMENTS -------------------------------------------------------------------------------- STI CLASSIC EQUITY FUNDS MAY 31, 2002 INTERNATIONAL EQUITY INDEX FUND--CONTINUED -------------------------------------------------------------------------------- SHARES VALUE (000) -------------------------------------------------------------------------------- FRANCE--CONTINUED Cap Gemini 5,675 $ 279 Carrefour 24,576 1,239 Castorama Dubois Investissements 4,011 253 Cie de Saint-Gobain 3,794 673 Cie Generale D'Optique Essilor International 5,413 219 Dassault Systemes 2,263 91 Etablissements Economiques du Casino Guichard Perr 1,583 130 European Aeronautic Defense and Space 14,065 229 France Telecom 17,983 349 Groupe Danone 5,869 811 L'OREAL 15,225 1,089 Lafarge 6,583 672 Lagardere 7,445 336 LVMH Moet Hennessy Louis Vuitton 10,634 564 Michelin, Cl B 7,227 282 Pechiney, Cl A 3,866 208 Pernod-Ricard 2,388 215 Peugeot 8,780 463 Pinault-Printemps-Redoute 3,492 432 Publicis Groupe 5,520 167 Renault 8,314 410 Sanofi-Synthelabo 18,213 1,105 Schneider Electric 10,198 524 Societe BIC 2,030 79 Societe Generale, Cl A 13,477 916 Societe Television Francaise 7,194 220 Sodexho Alliance 4,937 171 Suez 38,888 1,105 Technip-Coflexip 1,131 137 Thales 3,789 158 Thomson Multimedia* 8,657 243 TotalFinaElf 29,573 4,611 Union du Credit-Bail Immobilier 2,384 151 Valeo 3,752 167 Vinci 3,582 224 Vivendi Universal 43,484 1,365 -------- 27,948 -------- GERMANY (13.5%) Adidas-Salomon 4,700 381 Aixtron 5,597 83 Allianz 16,100 3,580 Altana 7,377 398 BASF 49,900 2,312 Bayer 63,700 2,071 Bayerische Hypo-und Vereinsbank 30,900 1,088 Beiersdorf 3,182 372 Continental 11,565 210 -------------------------------------------------------------------------------- SHARES VALUE (000) -------------------------------------------------------------------------------- GERMANY--CONTINUED DaimlerChrysler 77,400 $ 3,818 Deutsche Bank 49,800 3,555 Deutsche Boerse 5,561 259 Deutsche Lufthansa 20,600 279 Deutsche Post 42,200 615 Deutsche Telekom 187,300 2,077 Douglas Holding 2,105 50 E.ON 52,500 2,742 Epcos* 5,300 207 Fresenius Medical Care 3,800 197 Gehe 2,762 120 Heidelberger Zement 2,796 120 Infineon Technologies* 32,600 565 KarstadtQuelle 4,453 126 Linde 9,000 448 MAN 7,810 182 Marschollek Lautenschlaeger und Partner 5,600 225 Merck KGaA 4,870 137 Metro 14,700 484 Muenchener Rueckversicherungs 8,700 1,986 Preussag 14,600 371 RWE 33,800 1,282 SAP 18,700 1,988 Schering 17,200 1,029 Siemens 71,900 4,508 ThyssenKrupp 33,900 551 Volkswagen 21,400 1,148 WCM Beteiligungs & Grundbesi 16,600 147 -------- 39,711 -------- GREECE (0.8%) Alpha Credit Bank* 20,800 304 Bank of Piraeus* 16,400 111 Coca Cola Hellenic Bottling* 13,300 210 Commercial Bank Of Greece* 9,600 225 EFG Eurobank Ergasias 18,800 252 Hellenic Petroleum* 11,000 63 Hellenic Petroleum* 1,800 10 Hellenic Telecom* 24,000 387 Intracom Common* 10,500 97 National Bank of Greece 23,600 488 Titan Cement* 3,900 144 Viohalco* 13,300 93 Vodafone-Panafon* 22,200 110 -------- 2,494 -------- HONG KONG (1.2%) Bank of East Asia 56,600 123 Cheung Kong Holdings 62,000 574 CLP Holdings 63,100 257 Hang Seng Bank 27,300 302 48 -------------------------------------------------------------------------------- SHARES VALUE (000) -------------------------------------------------------------------------------- HONG KONG--CONTINUED Henderson Land Development 25,000 $ 108 Hong Kong & China Gas 153,237 204 Hong Kong Electric Holdings 44,000 171 Hutchison Whampoa 78,080 653 Johnson ElectricHoldings 61,000 84 Li & Fung 66,000 97 Pacific Century CyberWorks* 379,630 94 Sun Hung Kai Properties 54,600 429 Swire Pacific, Cl A 39,000 215 Wharf Holdings 51,000 120 -------- 3,431 -------- IRELAND (0.8%) Allied Irish Banks 20,025 276 Allied Irish Banks - Dublin 23,850 332 Bank of Ireland 49,157 634 CRH 20,685 365 CRH 6,332 111 Elan* 18,086 184 Irish Life & Permanent 14,408 218 Jefferson Smurfit Group 22,762 68 Kerry Group, Cl A 6,213 89 Ryanair Holdings* 19,483 109 -------- 2,386 -------- ITALY (8.1%) Alitalia* 99,034 67 Alleanza Assicurazioni* 53,897 518 Arnoldo Mondadori Editore* 16,583 110 Assicurazioni Generali 102,918 2,404 Autogrill 14,644 166 Autostrade Concessioni e Costruzioni Autostrade* 97,771 795 Banca di Roma* 96,136 230 Banca Fideuram 34,892 241 Banca Monte Dei Paschi di Siena* 98,978 336 Banca Nazionale del Lavoro* 203,834 418 Banca Popolare di Milano* 49,156 204 Benetton Group* 6,967 88 Bipop-Carire 163,306 265 Bulgari 17,034 126 Enel* 204,970 1,222 ENI-Ente Nazionale Idrocarburi 294,975 4,492 Fiat 29,972 358 IntesaBci 377,731 1,119 IntesaBci - RNC* 90,696 205 Italcementi 10,195 93 Italgas 24,519 247 Luxottica Group 16,450 328 Mediaset 71,351 571 Mediobanca* 51,983 497 Mediolanum* 27,822 207 Parmalat Finanziaria 51,269 158 -------------------------------------------------------------------------------- SHARES VALUE (000) -------------------------------------------------------------------------------- ITALY--CONTINUED Pirelli* 122,667 $ 167 Rinascente* 15,295 54 Riunione Adriatica di Sicurta* 40,626 505 Sanpaolo IMI 89,361 860 Seat-Pagine Gialle* 587,468 476 Snam Rete Gas* 100,029 287 Telecom Italia 239,662 1,926 Telecom Italia RNC 198,813 1,061 TIM 387,234 1,639 Tiscali* 20,669 157 Unicredito Italiano* 320,748 1,432 -------- 24,029 -------- JAPAN (31.1%) 77 Bank 25,000 100 Acom 4,780 328 Advantest 5,300 363 Aeon 16,000 464 Aiful 3,050 228 Ajinomoto 37,000 416 Alps Electric 11,000 142 Amada 18,000 97 Asahi Breweries 30,000 286 Asahi Glass 57,000 379 Asahi Kasei 95,000 350 Bank of Fukuoka 39,000 145 Bank of Yokohama 70,000 279 Benesse 5,000 96 Bridgestone 40,000 581 Canon 54,000 2,080 Casio Computer 15,000 81 Central Japan Railway 51 314 Chiba Bank 49,000 167 Chubu Electric Power 35,100 601 Chugai Pharmaceutical 18,000 210 Citizen Watch 21,000 140 Credit Saison 9,100 233 CSK 5,000 180 Dai Nippon Printing 45,000 624 Daiichi Pharmaceutical 17,000 329 Daikin Industries 12,000 226 Dainippon Ink & Chemical 46,000 108 Daito Trust Construction 6,300 110 Daiwa Bank Holdings* 293,000 222 Daiwa House Industry 34,000 238 Daiwa Securities Group 78,000 574 Denki Kagaku Kogyo 29,000 91 Denso 30,700 483 East Japan Railway 173 810 Ebara 19,000 119 Eisai 16,400 444 Fanuc 7,500 388 Fast Retailing 4,500 121 49 -------------------------------------------------------------------------------- SCHEDULE OF INVESTMENTS -------------------------------------------------------------------------------- STI CLASSIC EQUITY FUNDS MAY 31, 2002 INTERNATIONAL EQUITY INDEX FUND--CONTINUED -------------------------------------------------------------------------------- SHARES VALUE (000) -------------------------------------------------------------------------------- JAPAN--CONTINUED Fuji Photo Film 29,000 $ 911 Fuji Soft ABC 2,300 92 Fuji Television Network 17 99 Fujikura 24,000 102 Fujisawa Pharmaceutical 16,000 402 Fujitsu 112,000 821 Furukawa Electric 36,000 168 Gunma Bank 28,000 122 Hirose Electric 2,300 198 Hitachi 182,000 1,379 Honda Motor 40,700 1,738 Hoya 7,200 534 Isetan 12,000 137 Ishikawajima Harim Heavy Industies 88,000 155 Ito-Yokado 23,000 1,223 Itochu 92,000 350 Itochu Techno-Science 2,400 98 Japan Airlines* 46,000 137 Japan Energy 69,000 119 Japan Tobacco 54 366 JGC 16,000 122 Joyo Bank 56,300 151 Kajima 58,000 179 Kamigumi 15,000 63 Kaneka 18,000 123 Kansai Electric Power 35,200 505 Kao 34,000 796 Katokichi 3,200 59 Kawasaki Heavy Industries* 92,000 133 Kawasaki Steel 174,000 222 Keihin Electric Express Railway 32,000 142 Keio Electric Railway 42,000 205 Keyence 2,100 457 Kikkoman* 11,000 68 Kinden 10,000 48 Kinki Nippon Railway 112,250 372 Kirin Brewery 53,000 437 Kokuyo 6,000 67 Komatsu 71,000 255 Konami 7,000 158 Konica 18,000 124 Kubota 71,000 230 Kuraray 28,000 192 Kurita Water Industries 8,000 104 Kyocera 10,900 879 Kyowa Hakko Kogyo 25,000 144 Kyushu Electric Power 24,900 358 Mabuchi Motor 2,200 238 Makita 9,000 59 Marubeni* 93,000 100 Marui 24,000 330 Matsushita Communication 6,200 248 -------------------------------------------------------------------------------- SHARES VALUE (000) -------------------------------------------------------------------------------- JAPAN--CONTINUED Matsushita Electric Industrial 121,000 $ 1,687 Matsushita Electric Works 30,000 246 Meiji Seika Kaisha 22,000 86 Meitec 2,700 90 Millea Holdings* 83 716 Minebea 25,000 164 Mitsubishi 70,000 535 Mitsubishi Chemical 124,000 305 Mitsubishi Electric* 113,000 549 Mitsubishi Estate 60,000 532 Mitsubishi Heavy Industries 194,000 680 Mitsubishi Logistics 8,000 63 Mitsubishi Materials 69,000 153 Mitsubishi Rayon 39,000 127 Mitsubishi Tokyo Financial Group 194 1,509 Mitsui 83,000 550 Mitsui Chemicals 40,000 221 Mitsui Fudosan 49,000 456 Mitsui Mining & Smelting 41,000 139 Mitsui Sumitomo Insurance 82,340 462 Mitsukoshi 28,000 87 Mizuho Holdings 351 865 Murata Manufacturing 15,400 1,068 NEC 97,000 723 NGK Insulators 21,000 173 NGK Spark Plug 12,000 99 Nidec 2,500 184 Nikko Cordial 92,000 553 Nikon 20,000 234 Nintendo 6,500 899 Nippon Comsys 8,000 54 Nippon Express 58,000 287 Nippon Meat Packers 12,000 139 Nippon Mitsubishi Oil 101,000 544 Nippon Sheet Glass 24,000 96 Nippon Steel 339,000 552 Nippon Telegraph & Telephone 326 1,489 Nippon Unipac Holding* 57 322 Nippon Yusen Kabushiki Kaisha 72,000 264 Nissan Motor 147,000 1,044 Nisshin Seifun Group 12,000 88 Nissin Food Products 6,400 127 Nitto Denko 10,200 308 NKK* 225,000 218 Nomura Holdings 113,000 1,821 NSK 32,000 150 NTT Data 90 428 NTT Docomo 1,113 3,013 Obayashi 45,000 137 OJI Paper 53,000 274 Olympus Optical 17,000 252 Omron 16,000 262 Onward Kashiyama 8,000 82 50 -------------------------------------------------------------------------------- SHARES VALUE (000) -------------------------------------------------------------------------------- JAPAN--CONTINUED Oracle Corp Japan 2,500 $ 129 Oriental Land 3,500 239 ORIX 5,220 461 Osaka Gas 147,000 360 Pioneer 11,200 211 Promise 5,700 316 Ricoh 43,000 842 Rohm 7,000 1,031 Sankyo 26,000 388 Sanyo Electric 108,000 483 Sapporo Breweries 20,000 61 Secom 14,000 719 Sega* 7,400 185 Sekisui Chemical 31,000 105 Sekisui House 39,000 291 Seven - Eleven 24,000 1,044 Sharp 61,000 790 Shimamura 1,200 88 Shimano 5,800 81 Shimizu 43,000 154 Shin-Etsu Chemical 23,600 951 Shionogi 22,000 299 Shiseido 26,000 344 Shizuoka Bank 45,000 287 Showa Denko* 71,000 125 Showa Shell Sekiyu* 10,000 66 Skylark 6,300 145 SMC 3,700 432 Softbank 14,100 222 Sony 56,600 3,284 Sumitomo 54,000 357 Sumitomo Chemical 81,000 375 Sumitomo Electric Industries 40,000 316 Sumitomo Metal Industries* 226,000 97 Sumitomo Metal Mining 38,000 179 Sumitomo Mitsui Banking 237,800 1,332 Sumitomo Realty & Development 25,000 166 Sumitomo Trust & Banking 63,000 354 Taiheiyo Cement 59,000 111 Taisei 64,000 160 Taisho Pharmaceutical 13,000 216 Taiyo Yuden 8,000 148 Takara Shuzo 13,000 104 Takashimaya 19,000 127 Takeda Chemical Industries 50,000 2,252 Takefuji 4,910 335 TDK 8,000 454 Teijin 59,000 220 Teikoku Oil 15,000 70 Terumo 13,900 208 THK 7,400 164 Tobu Railway 57,000 164 Toho 10,300 116 -------------------------------------------------------------------------------- SHARES VALUE (000) -------------------------------------------------------------------------------- JAPAN--CONTINUED Tohoku Electric Power 28,400 $ 370 Tokyo Broadcasting System 3,000 65 Tokyo Electric Power 68,100 1,427 Tokyo Electron 10,100 682 Tokyo Gas 171,000 468 Tokyu 74,000 310 TonenGeneral Sekiyu 25,000 215 Toppan Printing 42,000 468 Toray Industries 93,000 271 Toshiba* 184,000 778 Tosoh 37,000 120 Tostem 19,512 322 Toto 22,700 111 Toyo Seikan Kaisha 11,300 163 Toyobo 43,000 69 Toyota Industries 11,000 186 Toyota Motor 150,700 4,116 Trend Micro* 6,500 193 Ube Industries 56,000 88 UFJ Holdings 211 629 Uni-Charm 3,200 112 UNY 10,000 120 Wacoal 7,000 55 West Japan Railway 73 328 World 2,650 78 Yakult Honsha* 11,000 125 Yamaha 12,000 118 Yamaichi Securities* 15,000 -- Yamanouchi Pharmaceutical 21,600 588 Yamato Transport 29,000 573 Yamazaki Baking 10,000 63 Yasuda Fire & Marine Insurance 48,000 317 Yokogawa Electric 16,000 140 -------- 91,798 -------- LUXEMBOURG (0.1%) Arcelor* 19,395 276 -------- NETHERLANDS (3.0%) ABN Amro Holding 32,305 624 Aegon 20,932 450 Akzo Nobel 7,676 346 ASML Lithography Holding* 11,905 228 Elsevier 16,518 225 Heineken 5,259 226 ING Groep 36,496 965 Koninklijke Ahold 17,270 370 Koninklijke Philips Electronics 31,366 977 Qiagen* 13,996 213 Royal Dutch Petroleum 47,552 2,661 Royal KPN* 44,756 197 TPG 9,001 184 Unilever 12,732 836 51 -------------------------------------------------------------------------------- SCHEDULE OF INVESTMENTS -------------------------------------------------------------------------------- STI CLASSIC EQUITY FUNDS MAY 31, 2002 INTERNATIONAL EQUITY INDEX FUND--CONTINUED -------------------------------------------------------------------------------- SHARES VALUE (000) -------------------------------------------------------------------------------- NETHERLANDS--CONTINUED VNU 5,940 $ 184 Wolters Kluwer 7,314 152 -------- 8,838 -------- NEW ZEALAND (0.3%) Auckland International Airport 42,463 91 Carter Holt Harvey 135,249 130 Contact Energy 44,846 86 Fisher & Paykel Healthcare 11,655 51 Fletcher Building 53,591 74 Telecom Corp of New Zealand 154,314 381 Warehouse Group 21,300 73 -------- 886 -------- NORWAY (1.3%) Bergesen, Cl A 3,900 82 DnB Holding 56,200 291 Elkem 1,800 36 Gjensidige NOR Sparebank 6,400 230 Norsk Hydro 21,140 1,063 Norske Skogindustrier 15,350 291 Orkla 28,450 563 Petroleum Geo-Services* 14,900 58 Statoil 57,300 493 Storebrand 22,000 143 Tandberg* 17,194 208 Telenor 57,400 219 Tomra Systems 25,750 177 -------- 3,854 -------- PORTUGAL (0.9%) Banco Comercial Portugues* 175,328 598 Banco Espirito Santo 14,197 154 BPI-SGPS 51,379 118 Brisa-Auto Estradas de Portugal 40,563 221 Cimpor Cimentos de Portugal 4,543 87 Electricidade de Portugal 243,376 516 Portugal Telecom SGPS* 113,475 827 Sonae SGPS 135,209 93 -------- 2,614 -------- SINGAPORE (0.6%) Chartered Semiconductor Manufacturing* 23,000 52 City Developments 19,000 63 DBS Group Holdings 45,467 359 Oversea-Chinese Banking 41,350 280 Singapore Airlines 23,000 163 Singapore Press Holdings 15,000 175 Singapore Telecommunications 176,000 155 United Overseas Bank 49,000 403 -------- 1,650 -------- -------------------------------------------------------------------------------- SHARES VALUE (000) -------------------------------------------------------------------------------- SPAIN (4.6%) Acerinox 3,325 $ 133 ACS 3,237 107 Altadis 22,560 485 Autopistas Concesionaria Espanola* 10,220 108 Banco Bilbao Vizcaya Argentaria 206,542 2,491 Banco Santander Central Hispano 287,573 2,657 Endesa 69,458 1,077 Fomento de Construcciones y Contratas 3,268 82 Gas Natural SDG 10,443 195 Grupo Dragados* 10,715 190 Iberdrola 58,977 821 Inditex De Diseno Textil* 16,960 352 Repsol YPF 71,182 837 Sociedad General de Aguas de Barcelona 4,391 56 Sol Melia* 5,746 43 Telefonica* 302,545 3,203 Terra Networks* 31,394 187 Union Electrica Fenosa 17,764 319 Vallehermoso 9,023 84 Zeltia* 10,092 88 -------- 13,515 -------- SWEDEN (1.5%) Assa Abloy, Cl B 13,400 182 Atlas Copco, Cl A 5,300 127 Electrolux, Cl B 14,700 269 Gambro, Cl A 8,200 56 Hennes & Mauritz, Cl B 20,950 389 Nordea 79,000 454 Sandvik 10,400 240 Securitas, Cl B 13,800 262 Skandia Forsakrings 39,400 184 Skandinaviska Enskilda Banken 22,200 221 Skanska, Cl B 18,000 125 SKF, Cl B 3,000 75 Svenska Cellulosa, Cl B 7,000 244 Svenska Handelsbanken, Cl A 19,700 308 Swedish Match 17,100 136 Tele2, Cl B* 4,150 77 Telefonaktiebolaget LM Ericsson* 335,800 752 Telia 42,500 108 Volvo, Cl B 9,950 185 -------- 4,394 -------- SWITZERLAND (2.0%) ABB 11,477 103 Adecco 1,538 101 Compagnie Financiere Richemont 6,656 175 Credit Suisse Group* 11,429 422 Holcim, Cl B 352 86 52 -------------------------------------------------------------------------------- SHARES VALUE (000) -------------------------------------------------------------------------------- SWITZERLAND--CONTINUED Nestle 3,764 $ 914 Novartis 27,109 1,165 Roche Holding, Bearer Shares 559 59 Roche Holding, Genuss Shares 7,390 593 STMicroelectronics 27,466 757 Swiss Reinsurance 2,998 306 Swisscom 338 97 Syngenta 1,364 86 UBS* 13,370 699 Zurich Financial Services 1,067 248 -------- 5,811 -------- UNITED KINGDOM (10.6%) 3i Group 13,602 151 Amersham 15,622 142 Amvescap 14,002 140 ARM Holdings* 23,126 63 AstraZeneca 31,361 1,379 AWG* 6,308 51 BAA 23,773 214 BAE Systems 65,703 369 Barclays 124,817 1,078 BG Group 78,724 342 BHP Billiton 49,155 281 BOC Group 11,063 173 Boots 20,080 201 BP 408,774 3,499 Brambles Industries 16,147 78 British American Tobacco 34,952 419 British Land 11,565 103 British Sky Broadcasting* 19,003 204 BT Group* 168,248 690 Cable & Wireless 50,489 155 Cadbury Schweppes 41,616 304 Canary Wharf Group* 10,939 77 Capita Group 15,025 83 Celltech Group* 6,140 62 Centrica 92,816 282 CGNU 45,588 426 CMG 13,848 27 Compass Group 49,800 312 Diageo 64,191 808 Dixons Group 43,375 136 Electrocomponents 9,705 60 EMI Group 17,594 69 Exel 6,639 87 GKN 16,221 79 GlaxoSmithKline 106,940 2,197 Granada 61,761 119 Great Universal Stores 22,456 213 Hanson 16,420 124 -------------------------------------------------------------------------------- SHARES VALUE (000) -------------------------------------------------------------------------------- UNITED KINGDOM--CONTINUED Hays 36,752 $ 89 HBOS 69,162 837 Hilton Group 35,087 126 HSBC Holdings 174,101 2,165 Imperial Chemical Industries 26,578 128 Imperial Tobacco Group 16,269 276 International Power* 24,934 69 Invensys 78,083 121 J Sainsbury 32,346 178 Jefferson Smurfit Group 27,691 83 Johnson Matthey 4,876 77 Kingfisher 28,851 154 Land Securities 11,700 168 Lattice Group 78,717 209 Legal & General Group 115,061 255 Lloyds TSB Group 102,684 1,112 Logica 10,002 32 Marconi 63,761 7 Marks & Spencer Group 51,448 285 National Grid Group 39,646 290 P&O Princess Cruises 15,457 101 Pearson 17,863 221 Peninsular & Orient Steam Navigation 15,217 60 Provident Financial 5,476 57 Prudential 39,721 387 Reckitt Benckiser 12,015 213 Reed Elsevier 28,260 272 Rentokil Initial 42,982 175 Reuters Group 31,956 218 Rio Tinto 22,710 433 Royal & Sun Alliance Insurance Group 32,123 138 Royal Bank of Scotland Group 49,600 1,444 Sage Group* 27,013 69 Scottish & Southern Energy 19,183 195 Scottish Power 41,334 243 Shell Transport & Trading 179,097 1,389 Six Continents 19,329 216 Smith & Nephew 20,632 117 Smiths Group 12,422 160 Tesco 140,039 529 Unilever 52,699 484 United Utilities 12,341 120 Vodafone Group 1,242,936 1,878 Wolseley 12,878 137 WPP Group 25,428 265 -------- 31,379 -------- Total Foreign Common Stock (Cost $305,095) 287,543 -------- 53 SCHEDULE OF INVESTMENTS/STATEMENT OF NET ASSETS -------------------------------------------------------------------------------- STI CLASSIC EQUITY FUNDS MAY 31, 2002 INTERNATIONAL EQUITY INDEX FUND--CONCLUDED -------------------------------------------------------------------------------- SHARES VALUE (000) -------------------------------------------------------------------------------- FOREIGN PREFERRED STOCK (0.6%) AUSTRALIA (0.1%) News Corporation 68,523 $ 415 -------- GERMANY (0.5%) Henkel KGaA 6,100 432 Hugo Boss 2,991 56 Porsche 852 425 Prosieben SAT.1 Media 7,894 66 Volkswagen 10,973 389 -------- 1,368 -------- ITALY (0.0%) Fiat 9,249 77 -------- Total Foreign Preferred Stock (Cost $2,095) 1,860 -------- EXCHANGE TRADED FUND (0.7%) UNITED STATES (0.7%) IShares MSCI EAFE Index 15,609 1,914 -------- Total Exchange Traded Fund (Cost $1,844) 1,914 -------- Total Investments (98.9%) (Cost $309,034) $291,317 ======== -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- At May 31, 2002, sector diversification of the Fund was as follows (Unaudited): % OF VALUE SECTOR DIVERSIFICATION NET ASSETS (000) ---------------------------- -------------- ---------- FOREIGN COMMON STOCK Banking 15.5% $ 45,740 Electronics 8.9 26,358 Oil & Gas 7.9 23,217 Medical Supplies 6.4 18,970 Insurance 5.2 15,452 Food, Beverage and Tobacco 5.2 15,407 Automotive 5.2 15,348 Television 5.0 14,640 Diversified Operations 4.1 12,121 Telecommunications 4.0 11,641 Chemicals 2.9 8,552 Services 2.9 8,470 Transportation 2.8 8,108 Manufacturing 2.6 7,627 Retail 2.5 7,508 Financial Services 2.5 7,251 Construction Materials 2.3 6,860 Computers 2.0 6,114 Audio/Video 1.9 5,543 Consumer Products 1.5 4,411 Real Estate 1.2 3,609 Metal 1.0 2,900 Cosmetics &Toiletries 0.9 2,713 Paper and Paper Products 0.8 2,338 Publishing 0.8 2,210 Entertainment 0.6 1,756 Multi-Media 0.6 1,689 Aerospace/Defense 0.3 756 Distribution 0.1 234 ----- -------- TOTAL FOREIGN COMMON STOCK 97.6 287,543 TOTAL EXCHANGE TRADED FUND 0.7 1,914 TOTAL FOREIGN PREFERRED STOCK 0.6 1,860 ----- -------- TOTAL INVESTMENTS 98.9 291,317 OTHER ASSETS AND LIABILITIES, NET 1.1 3,354 ----- -------- TOTAL NET ASSETS 100.0% $294,671 ===== ======== THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS. FOR DESCRIPTIONS OF ABBREVIATIONS, PLEASE SEE PAGE 74. 54 -------------------------------------------------------------------------------- LIFE VISION AGGRESSIVE GROWTH FUND -------------------------------------------------------------------------------- SHARES VALUE (000) -------------------------------------------------------------------------------- EQUITY FUNDS (97.0%) (2) STI Classic Capital Appreciation Fund, Trust Shares 926,363 $11,339 STI Classic Growth and Income Fund, Trust Shares 410,475 5,665 STI Classic International Equity Index Fund, Trust Shares 586,324 5,722 STI Classic Mid-Cap Equity Fund, Trust Shares 69,514 680 STI Classic Small Cap Growth Stock Fund, Trust Shares 121,935 2,107 STI Classic Small Cap Value Equity Fund, Trust Shares 148,218 2,155 STI Classic Value Income Stock Fund, Trust Shares 515,720 5,699 ------- Total Equity Funds (Cost $33,348) 33,367 ------- MONEY MARKET FUND (3.0%) (2) STI Classic Prime Quality Money Market Fund, Trust Shares 1,023,738 1,024 ------- Total Money Market Fund (Cost $1,024) 1,024 ------- Total Investments (100.0%) (Cost $34,372) 34,391 ------- OTHER ASSETS AND LIABILITIES, NET (0.0%) Investment Advisory Fee Payable (2) Administration Fee Payable (2) Other Assets and Liabilities 11 -------- Total Other Assets and Liabilities, Net 7 -------- NET ASSETS: Paid in Capital -- Trust Shares (unlimited authorization -- no par value) based on 3,596,112 outstanding shares of beneficial interest 35,627 Accumulated net realized loss on investments (1,248) Net unrealized appreciation on investments 19 ------- Total Net Assets (100.0%) $34,398 ======= Net Asset Value, Offering and Redemption Price Per Share-- Trust Shares $9.57 ======= THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS. FOR DESCRIPTIONS OF ABBREVIATIONS, PLEASE SEE PAGE 74. 55 STATEMENT OF NET ASSETS -------------------------------------------------------------------------------- STI CLASSIC EQUITY FUNDS MAY 31, 2002 LIFE VISION GROWTH AND INCOME FUND -------------------------------------------------------------------------------- SHARES VALUE (000) -------------------------------------------------------------------------------- EQUITY FUNDS (74.3%) (2) STI Classic Capital Appreciation Fund, Trust Shares 738,958 $ 9,045 STI Classic Growth and Income Fund, Trust Shares 923,509 12,745 STI Classic International Equity Index Fund, Trust Shares 1,167,252 11,392 STI Classic Mid-Cap Equity Fund, Trust Shares 156,417 1,531 STI Classic Small Cap Growth Stock Fund, Trust Shares 285,266 4,930 STI Classic Small Cap Value Equity Fund, Trust Shares 346,701 5,041 STI Classic Value Income Stock Fund, Trust Shares 1,160,211 12,820 -------- Total Equity Funds (Cost $55,400) 57,504 -------- FIXED INCOME FUNDS (22.6%) (2) STI Classic Investment Grade Bond Fund, Trust Shares 925,343 9,476 STI Classic Limited-Term Federal Mortgage Securities Fund, Trust Shares 775,596 7,996 -------- Total Fixed Income Funds (Cost $17,112) 17,472 -------- MONEY MARKET FUND (3.0%) (2) STI Classic Prime Quality Money Market Fund, Trust Shares 2,329,797 2,330 -------- Total Money Market Fund (Cost $2,330) 2,330 -------- Total Investments (99.9%) (Cost $74,842) 77,306 -------- OTHER ASSETS AND LIABILITIES, NET (0.1%) Investment Advisory Fee Payable (7) Administration Fee Payable (4) Other Assets and Liabilities 100 -------- Total Other Assets and Liabilities, Net 89 -------- -------------------------------------------------------------------------------- VALUE (000) -------------------------------------------------------------------------------- NET ASSETS: Paid in Capital -- Trust Shares (unlimited authorization -- no par value) based on 7,754,379 outstanding shares of beneficial interest $78,418 Undistributed net investment income 120 Accumulated net realized loss on investments (3,607) Net unrealized appreciation on investments 2,464 ------- Total Net Assets (100.0%) $77,395 ======= Net Asset Value, Offering and Redemption Price Per Share-- Trust Shares $9.98 ======= THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS. FOR DESCRIPTIONS OF ABBREVIATIONS, PLEASE SEE PAGE 74. 56 -------------------------------------------------------------------------------- LIFE VISION MODERATE GROWTH FUND -------------------------------------------------------------------------------- SHARES VALUE (000) -------------------------------------------------------------------------------- EQUITY FUNDS (58.9%) (2) STI Classic Capital Appreciation Fund, Trust Shares 1,086,875 $13,303 STI Classic Growth and Income Fund, Trust Shares 475,191 6,558 STI Classic International Equity Index Fund, Trust Shares 1,422,176 13,880 STI Classic Mid-Cap Equity Fund, Trust Shares 161,478 1,581 STI Classic Small Cap Growth Stock Fund, Trust Shares 291,933 5,045 STI Classic Small Cap Value Equity Fund, Trust Shares 354,929 5,161 STI Classic Value Income Stock Fund, Trust Shares 605,118 6,686 ------- Total Equity Funds (Cost $48,703) 52,214 ------- FIXED INCOME FUNDS (38.0%) (2) STI Classic Investment Grade Bond Fund, Trust Shares 1,493,211 15,290 STI Classic Limited-Term Federal Mortgage Securities Fund, Trust Shares 1,779,599 18,348 ------- Total Fixed Income Funds (Cost $32,596) 33,638 ------- MONEY MARKET FUND (3.1%) (2) STI Classic Prime Quality Money Market Fund, Trust Shares 2,713,766 2,714 ------- Total Money Market Fund (Cost $2,714) 2,714 ------- Total Investments (100.0%) (Cost $84,013) 88,566 ------- OTHER ASSETS AND LIABILITIES, NET (0.0%) Investment Advisory Fee Payable (12) Administration Fee Payable (5) Other Assets and Liabilities 43 ------- Total Other Assets and Liabilities, Net 26 ------- -------------------------------------------------------------------------------- VALUE (000) -------------------------------------------------------------------------------- NET ASSETS: Paid in Capital -- Trust Shares (unlimited authorization -- no par value) based on 9,420,011 outstanding shares of beneficial interest $90,767 Undistributed net investment income 287 Accumulated net realized loss on investments (7,015) Net unrealized appreciation on investments 4,553 ------- Total Net Assets (100.0%) $88,592 ======= Net Asset Value, Offering and Redemption Price Per Share-- Trust Shares $9.40 ======= THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS. FOR DESCRIPTIONS OF ABBREVIATIONS, PLEASE SEE PAGE 74. 57 STATEMENT OF NET ASSETS -------------------------------------------------------------------------------- STI CLASSIC EQUITY FUNDS MAY 31, 2002 MID-CAP EQUITY FUND -------------------------------------------------------------------------------- SHARES VALUE (000) -------------------------------------------------------------------------------- COMMON STOCK (91.0%) BASIC MATERIALS (6.0%) Airgas* 61,000 $ 994 Bowater 39,300 2,059 Crompton 166,200 1,881 HB Fuller 78,200 2,256 Praxair 41,000 2,296 Stillwater Mining* 131,000 2,319 -------- 11,805 -------- CAPITAL GOODS (4.1%) Jacobs Engineering Group* 71,800 2,756 Pittston Brink's Group 58,000 1,567 RPM 70,900 1,116 SPX* 10,100 1,389 Superior Industries International 26,100 1,194 -------- 8,022 -------- COMMUNICATION SERVICES (1.2%) CenturyTel 53,300 1,652 Triton PCS Holdings, Cl A* 69,400 708 -------- 2,360 -------- COMMUNICATIONS EQUIPMENT (0.6%) Powerwave Technologies* 107,100 1,136 -------- COMPUTER SOFTWARE (3.0%) Electronic Arts* 29,200 1,869 Intuit* 33,600 1,469 Retek* 54,700 1,334 THQ* 37,250 1,192 -------- 5,864 -------- CONSUMER CYCLICALS (7.8%) Abercrombie & Fitch, Cl A* 103,600 3,005 American Eagle Outfitters* 51,050 1,133 Columbia Sportswear* 4,800 169 Electronics Boutique Holdings* 93,700 2,782 Fluor 61,700 2,320 Mohawk Industries* 32,500 2,129 Six Flags* 100,400 1,613 Too* 73,400 2,246 -------- 15,397 -------- CONSUMER STAPLES (10.3%) Brinker International* 19,900 668 CBRL Group 77,700 2,583 Charter Communications, Cl A* 75,400 526 Cheesecake Factory* 14,100 538 Darden Restaurants 87,800 2,206 Dean Foods* 91,000 3,321 -------------------------------------------------------------------------------- SHARES VALUE (000) -------------------------------------------------------------------------------- CONSUMER STAPLES--CONTINUED Emmis Communications, Cl A* 85,500 $ 2,531 Hispanic Broadcasting* 77,800 1,942 Radio One, Cl D* 89,800 1,949 Sensient Technologies 122,400 2,922 Univision Communications, Cl A* 25,300 1,012 -------- 20,198 -------- ENERGY (5.7%) BJ Services* 27,000 1,013 Cooper Cameron* 12,900 726 ENSCO International 30,400 996 Evergreen Resources* 23,400 1,046 GlobalSantaFe 36,149 1,220 Ocean Energy 65,900 1,465 Precision Drilling* 67,900 2,556 Pride International* 29,900 580 Smith International* 6,600 484 Varco International* 50,000 1,012 -------- 11,098 -------- FINANCE (14.7%) AG Edwards 21,300 845 AmeriCredit* 45,600 1,600 Colonial BancGroup 53,200 819 Everest Re Group 34,400 2,154 Hibernia 191,900 3,851 M&T Bank 27,600 2,406 Marshall & Ilsley 48,800 3,030 National Commerce Financial 78,100 2,162 North Fork Bancorporation 90,300 3,550 RenaissanceRe Holdings 48,300 1,787 SouthTrust 154,200 4,005 Sovereign Bancorp 131,900 2,042 TCF Financial 12,800 656 -------- 28,907 -------- HEALTH CARE (15.1%) AdvancePCS* 90,300 2,149 Affymetrix* 11,800 283 Albany Molecular Research* 17,700 371 Barr Laboratories* 32,200 2,143 Caremark Rx* 51,500 996 Cephalon* 25,800 1,382 Health Management Associates, Cl A* 80,900 1,666 Health Net* 34,600 1,002 Idec Pharmaceuticals* 54,500 2,338 King Pharmaceuticals* 145,949 3,948 LifePoint Hospitals* 28,000 1,090 Mylan Laboratories 27,000 835 58 -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- SHARES VALUE (000) -------------------------------------------------------------------------------- HEALTH CARE--CONTINUED Province Healthcare* 64,150 $ 1,633 Quest Diagnostics* 27,000 2,360 Renal Care Group* 162,900 5,491 Teva Pharmaceutical Industries ADR 18,400 1,233 Universal Health Services, Cl B* 16,000 794 -------- 29,714 -------- SERVICES (3.5%) Apollo Group, Cl A* 44,400 1,531 Education Management* 29,400 1,216 Expedia, Cl A* 10,200 729 GTECH Holdings* 33,500 943 Hotels.com, Cl A* 11,600 555 Republic Services* 92,000 1,934 -------- 6,908 -------- TECHNOLOGY (16.5%) Actel* 14,900 367 Acxiom* 88,900 1,581 Affiliated Computer Services, Cl A* 36,000 2,003 Cadence Design Systems* 58,400 1,125 Cerner* 30,400 1,654 Concurrent Computer* 314,400 1,996 DST Systems* 41,400 2,046 ESS Technology* 91,400 1,455 Integrated Circuit Systems* 101,200 2,109 Intersil, Cl A* 60,100 1,444 Kopin* 76,800 595 L-3 Communications Holdings* 35,400 2,234 Lam Research* 18,600 423 Mentor Graphics* 20,300 330 Microchip Technology* 47,350 1,416 Network Associates* 47,900 927 Pec Solutions* 55,400 1,476 QLogic* 27,700 1,266 RF Micro Devices* 84,000 1,378 Sandisk* 43,300 607 Semtech* 35,900 1,180 Sungard Data Systems* 32,900 925 Symantec* 15,600 536 Utstarcom* 41,900 932 Zoran* 100,350 2,433 -------- 32,438 -------- TRANSPORTATION (1.4%) Expeditors International Washington 11,900 703 Heartland Express* 51,200 1,050 JB Hunt Transport Services* 37,400 1,022 -------- 2,775 -------- -------------------------------------------------------------------------------- SHARES/FACE AMOUNT (000) VALUE (000) -------------------------------------------------------------------------------- UTILITIES (1.1%) Equitable Resources 61,400 $ 2,212 -------- Total Common Stock (Cost $156,600) 178,834 -------- CONVERTIBLE BONDS (2.9%) Affymetrix CV to 16.2602 Shares, Callable 10/07/02 @ 102.50 5.000%, 10/01/06 $ 770 664 AmeriSource Health CV to 18.8791 Shares, Callable 12/03/04 @ 102.14 5.000%, 12/01/07 550 896 DR Horton CV to 17.4927 Shares, Callable 05/14/03 @ 55.97 (A) 0.000%, 05/11/21 682 471 Gilead Sciences CV to 20.3562 Shares, Callable 12/20/03 @ 102.86 5.000%, 12/15/07 1,120 1,824 Lennar CV to 6.3842 Shares, Callable 04/06/06 @ 100 (A) 0.000%, 04/04/21 717 314 SPX CV to 4.8116 Shares, Callable 02/06/06 @ 66.39 (A) 0.000%, 02/06/21 2,025 1,504 -------- Total Convertible Bonds (Cost $5,108) 5,673 -------- REPURCHASE AGREEMENT (9.1%) U.S. Warburg 1.820%, dated 05/31/02, matures 06/03/02, repurchase price $17,945,774 (collateralized by U.S. Treasury Bill: total market value $18,304,143) (C) 17,943 17,943 -------- Total Repurchase Agreement (Cost $17,943) 17,943 -------- Total Investments (103.0%) (Cost $179,651) 202,450 -------- OTHER ASSETS AND LIABILITIES, NET (-3.0%) Investment Advisory Fee Payable (193) Administration Fee Payable (12) Distribution Fee Payable (13) Custodian Fee Payable (1) Other Assets and Liabilities (5,715) -------- Total Other Assets and Liabilities, Net (5,934) -------- 59 STATEMENT OF NET ASSETS -------------------------------------------------------------------------------- STI CLASSIC EQUITY FUNDS MAY 31, 2002 MID-CAP EQUITY FUND--CONCLUDED -------------------------------------------------------------------------------- VALUE (000) -------------------------------------------------------------------------------- NET ASSETS: Paid in Capital -- Trust Shares (unlimited authorization -- no par value) based on 17,554,517 outstanding shares of beneficial interest $177,809 Paid in Capital -- Investor Shares (unlimited authorization -- no par value) based on 1,136,713 outstanding shares of beneficial interest 11,679 Paid in Capital -- Flex Shares (unlimited authorization -- no par value) based on 1,554,323 outstanding shares of beneficial interest 18,737 Accumulated net realized loss on investments (34,508) Net unrealized appreciation on investments 22,799 -------- Total Net Assets (100.0%) $196,516 ======== Net Asset Value, Offering and Redemption Price Per Share-- Trust Shares $9.79 ======== Net Asset Value and Redemption Price Per Share-- Investor Shares $9.47 ======== Maximum Offering Price Per Share-- Investor Shares ($9.47 / 96.25%) $9.84 ======== Net Asset Value, Offering and Redemption Price Per Share-- Flex Shares (1) $8.97 ======== THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS. FOR DESCRIPTIONS OF ABBREVIATIONS, PLEASE SEE PAGE 74. 60 -------------------------------------------------------------------------------- MID CAP VALUE EQUITY FUND -------------------------------------------------------------------------------- SHARES VALUE (000) -------------------------------------------------------------------------------- COMMON STOCK (91.9%) BASIC MATERIALS (9.5%) Boise Cascade 144,100 $ 5,127 Cabot 172,800 4,256 Eastman Chemical 65,700 3,039 Martin Marietta Materials 71,700 2,868 Sappi ADR 119,800 1,749 -------- 17,039 -------- CAPITAL GOODS (9.8%) American Power Conversion* 138,500 1,933 Empresa Bras de Aeronautica ADR 174,900 4,128 Masco 88,700 2,365 Pall 123,400 2,808 Rockwell Collins 97,000 2,522 Shaw Group* 18,300 612 Textron 31,600 1,483 United States Steel 91,400 1,877 -------- 17,728 -------- COMMUNICATION SERVICES (1.2%) CenturyTel 70,600 2,188 -------- CONSUMER CYCLICALS (20.7%) Abercrombie & Fitch, Cl A* 157,900 4,579 Abitibi-Consolidated 310,700 2,694 Cablevision Systems, Cl A* 303,700 5,655 Federated Department Stores* 112,400 4,655 Goodyear Tire & Rubber 66,300 1,453 Interpublic Group 111,100 3,666 Newell Rubbermaid 132,400 4,521 Park Place Entertainment* 262,600 2,967 Readers Digest, Cl A 92,500 2,064 RR Donnelley & Sons 93,400 2,693 Visteon 154,800 2,438 -------- 37,385 -------- CONSUMER STAPLES (3.7%) CVS 71,000 2,274 Estee Lauder, Cl A 85,000 3,124 PepsiAmericas 82,500 1,312 -------- 6,710 -------- ENERGY (4.4%) Devon Energy 33,100 1,730 Diamond Offshore Drilling 65,800 2,219 Noble Energy 56,800 2,168 Premcor* 68,900 1,853 -------- 7,970 -------- -------------------------------------------------------------------------------- SHARES VALUE (000) -------------------------------------------------------------------------------- FINANCE (16.3%) Charter One Financial 80,500 $ 2,914 Chubb 51,800 3,893 Comerica 50,100 3,212 Keycorp 104,900 2,864 Lincoln National 51,000 2,286 Protective Life 76,400 2,556 Stilwell Financial 121,900 2,633 UnumProvident 161,700 4,091 Wilmington Trust 28,500 1,779 Zions Bancorporation 56,000 3,084 -------- 29,312 -------- HEALTH CARE (5.7%) Becton Dickinson 54,400 2,045 Healthsouth* 131,700 1,864 IVAX* 212,700 2,782 Manor Care* 139,300 3,608 -------- 10,299 -------- SERVICES (4.0%) Allied Waste Industries* 205,100 2,297 Pittston Brink's Group 97,100 2,623 Viad 74,500 2,210 -------- 7,130 -------- TECHNOLOGY (10.6%) Advanced Micro Devices* 370,900 4,240 Avnet 95,100 2,200 Celestica ADR* 47,600 1,405 Harris 100,300 3,782 Scientific-Atlanta 183,300 3,565 Tellabs* 190,800 1,843 Vishay Intertechnology* 85,700 2,105 -------- 19,140 -------- TRANSPORTATION (1.6%) Delta Air Lines 110,300 2,895 -------- UTILITIES (4.4%) Allegheny Energy 49,100 1,764 FPL Group 35,800 2,255 KeySpan 55,200 2,090 PPL 50,200 1,777 -------- 7,886 -------- Total Common Stock (Cost $162,394) 165,682 -------- 61 STATEMENT OF NET ASSETS -------------------------------------------------------------------------------- STI CLASSIC EQUITY FUNDS MAY 31, 2002 MID CAP VALUE EQUITY FUND--CONCLUDED -------------------------------------------------------------------------------- FACE AMOUNT (000) VALUE (000) -------------------------------------------------------------------------------- REPURCHASE AGREEMENT (11.8%) UBS Warburg 1.770%, dated 05/31/02, matures 06/03/02, repurchase price $21,352,004 (collaterialized by U.S. Treasury Bill: total market value $21,779,047) (C) $21,349 $ 21,349 -------- Total Repurchase Agreement (Cost $21,349) 21,349 -------- Total Investments (103.7%) (Cost $183,743) 187,031 -------- OTHER ASSETS AND LIABILITIES, NET (-3.7%) Investment Advisory Fee Payable (172) Administration Fee Payable (10) Custodian Fee Payable (1) Other Assets and Liabilities (6,524) -------- Total Other Assets and Liabilities, Net (6,707) -------- NET ASSETS: Paid in Capital -- Trust Shares (unlimited authorization -- no par value) based on 15,971,902 outstanding shares of beneficial interest 169,397 Paid in Capital -- Flex Shares (unlimited authorization -- no par value) based on 500,238 outstanding shares of beneficial interest 5,372 Undistributed net investment income 25 Accumulated net realized gain on investments 2,242 Net unrealized appreciation on investments 3,288 -------- Total Net Assets (100.0%) $180,324 ======== Net Asset Value, Offering and Redemption Price Per Share-- Trust Shares $10.95 ======== Net Asset Value, Offering and Redemption Price Per Share-- Flex Shares (1) $10.92 ======== THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS. FOR DESCRIPTIONS OF ABBREVIATIONS, PLEASE SEE PAGE 74. 62 -------------------------------------------------------------------------------- SMALL CAP GROWTH STOCK FUND -------------------------------------------------------------------------------- SHARES VALUE (000) -------------------------------------------------------------------------------- COMMON STOCK (99.7%) BASIC MATERIALS (1.9%) A. Schulman 128,400 $ 2,546 Cooper Tire & Rubber 50,000 1,142 Georgia Gulf 80,000 1,784 Myers Industries 120,500 1,903 Stillwater Mining* 290,000 5,133 -------- 12,508 -------- CAPITAL GOODS (13.2%) AGCO* 140,000 2,905 Alliant Techsystems* 70,000 7,615 Apogee Enterprises 63,400 884 Astec Industries* 221,200 3,712 BE Aerospace* 253,300 3,293 Copart* 210,000 3,450 DRS Technologies* 130,000 5,096 Elcor 180,000 4,797 EMCOR Group* 40,000 2,259 Granite Construction 120,000 2,773 Griffon* 250,000 4,325 Herley Industries* 240,000 4,920 Keith* 274,900 4,275 Kemet* 160,000 3,235 Manitowoc 55,000 2,170 Monaco Coach* 150,000 3,810 Mueller Industries* 100,000 3,314 Nautilus Group* 140,000 5,117 Newport* 170,000 2,999 Oshkosh Truck 10,000 597 Rogers* 130,000 3,984 ROHN Industries* 80,000 31 Roper Industries 80,000 3,120 Valspar 90,000 4,221 Watsco 150,000 2,580 -------- 85,482 -------- COMMUNICATION SERVICES (3.2%) Advanced Fibre Communication* 200,000 3,832 Anaren Microwave* 250,000 3,250 ClearOne Communications* 230,000 4,209 Commonwealth Telephone Enterprises* 80,000 3,422 Symmetricom* 187,000 920 TTI Team Telecom International* 190,000 4,976 -------- 20,609 -------- COMMUNICATIONS EQUIPMENT (0.6%) Powerwave Technologies* 390,000 4,138 -------- -------------------------------------------------------------------------------- SHARES VALUE (000) -------------------------------------------------------------------------------- COMPUTER SOFTWARE (6.2%) Activision* 165,000 $ 5,382 Borland Software* 200,000 1,914 CACI International, Cl A* 150,000 5,052 JD Edwards* 240,000 2,798 Micros Systems* 90,000 2,603 NETIQ* 150,000 3,468 Numerical Technologies* 315,000 2,488 RADVision* 420,000 2,247 Riverstone Networks* 500,000 1,765 SS&C Technologies* 61,900 758 Systems & Computer Technology* 192,500 2,755 THQ* 165,000 5,280 Websense* 60,000 1,776 Western Digital* 430,000 1,978 -------- 40,264 -------- CONSUMER CYCLICALS (16.5%) 4Kids Entertainment* 400,000 7,208 Aftermarket Technology* 200,000 4,744 Alliance Gaming* 285,000 3,728 AnnTaylor Stores* 165,000 4,699 Argosy Gaming* 90,000 3,096 Boyd Gaming* 110,000 1,607 Buca* 150,000 2,671 CEC Entertainment* 80,000 3,799 Chico's FAS* 130,000 4,975 Christopher & Banks* 150,000 5,967 Circuit City Stores-Carmax* 149,950 3,969 Cost Plus* 20,000 637 Dial 170,000 3,434 Furniture Brands International* 95,000 3,594 Gymboree* 240,000 3,936 Imco Recycling* 260,000 2,735 J. Jill Group* 130,000 4,235 K-Swiss, Cl A 100,000 4,608 Mohawk Industries* 25,000 1,638 MTR Gaming Group* 381,000 6,161 Nash Finch 12,500 388 O'Charleys* 150,000 3,446 O'Reilly Automotive* 185,000 5,950 Penn National Gaming* 140,000 5,053 Rare Hospitality International* 165,000 4,645 Rent-A-Center* 45,000 2,554 Sonic Automotive* 110,000 3,641 Winnebago Industries 80,000 3,552 -------- 106,670 -------- 63 STATEMENT OF NET ASSETS -------------------------------------------------------------------------------- STI CLASSIC EQUITY FUNDS MAY 31, 2002 SMALL CAP GROWTH STOCK FUND--CONCLUDED -------------------------------------------------------------------------------- SHARES VALUE (000) -------------------------------------------------------------------------------- CONSUMER STAPLES (1.9%) Church & Dwight 10,800 $ 375 Cott* 270,000 5,103 Ralcorp Holdings* 130,000 3,658 Ruby Tuesday 130,000 3,024 -------- 12,160 -------- ENERGY (8.8%) CAL Dive International* 210,000 5,061 CARBO Ceramics 10,000 345 Comstock Resources* 455,000 3,758 Core Laboratories* 270,000 3,793 Dril-Quip* 65,000 1,505 Headwaters* 270,000 4,652 Horizon Offshore* 425,000 4,195 Hydril* 67,500 1,785 Key Energy Services* 320,000 3,520 Magnum Hunter Resources* 50,000 379 Maverick Tube* 310,000 4,805 National-Oilwell* 200,000 5,108 Newfield Exploration* 80,000 2,885 Patterson-UTI Energy* 85,000 2,598 Remington Oil & Gas* 160,000 3,107 Stone Energy* 100,000 4,115 Torch Offshore* 232,200 1,742 Veritas DGC* 240,000 3,624 -------- 56,977 -------- FINANCE (9.4%) Affiliated Managers Group* 75,000 5,205 Allied Capital 120,000 2,963 American Home Mortgage Holdings 151,600 2,320 Capitol Federal Financial 185,300 5,014 Coinstar* 200,000 5,720 Doral Financial 155,000 6,206 Harbor Florida Bancshares 180,000 4,095 Hilb, Rogal & Hamilton 140,000 5,769 IndyMac Bancorp* 100,000 2,313 Jefferies Group 100,000 4,704 LaBranche* 125,000 3,300 Net.B@nk* 200,000 2,656 OceanFirst Financial 112,500 2,350 Raymond James Financial 110,000 3,685 Sterling Bancshares 160,000 2,315 Trustmark 90,000 2,288 -------- 60,903 -------- -------------------------------------------------------------------------------- SHARES VALUE (000) -------------------------------------------------------------------------------- HEALTH CARE (15.5%) Cardiodynamics International* 460,000 $ 1,541 Charles River Laboratories International* 175,000 6,431 Covance* 300,000 5,475 CryoLife* 250,000 7,245 DaVita* 100,000 2,340 Dianon Systems* 45,000 2,902 Eclipsys* 220,000 3,263 First Horizon Pharmaceutical* 145,000 3,207 Fisher Scientific International* 40,000 1,230 Gentiva Health Services* 90,000 2,300 Henry Schein* 85,000 4,214 Integra LifeSciences Holdings* 220,000 4,200 Medicis Pharmaceutical, Cl A* 1 -- Mentor 130,000 4,971 Merit Medical Systems* 285,000 4,953 NDCHealth 80,000 2,582 North American Scientific* 95,000 1,150 Orthodontic Centers Of America* 119,900 3,115 Pharmaceutical Product Development* 210,000 5,334 Pharmaceutical Resources* 182,000 4,515 Possis Medical* 250,000 3,383 Priority Healthcare, Cl B* 200,000 5,072 Renal Care Group* 70,000 2,360 SICOR* 350,000 5,730 Steris* 200,000 4,230 SurModics* 70,000 2,377 Taro Pharmaceuticals Industries* 130,000 3,663 Thoratec* 300,000 2,853 -------- 100,636 -------- SERVICES (1.7%) Corinthian Colleges* 180,000 4,938 FTI Consulting* 85,000 2,600 MPS Group* 450,000 3,717 -------- 11,255 -------- TECHNOLOGY (16.4%) Adaptec* 315,000 4,086 Advanced Power Technology* 120,000 1,680 Aeroflex* 431,400 5,100 Alpha Industries* 88,000 897 Ansys* 90,000 2,412 Asyst Technologies* 240,000 4,080 ATMI* 125,000 3,331 Avocent* 205,000 4,633 64 -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- SHARES VALUE (000) -------------------------------------------------------------------------------- TECHNOLOGY--CONTINUED Axcelis Technologies* 180,000 $ 2,212 Benchmark Electronics* 82,200 2,466 Carreker* 153,900 1,521 Catapult Communications* 190,000 3,562 Dataram* 134,800 775 Engineered Support Systems 95,000 4,583 Exar* 120,000 2,588 Filenet* 250,000 3,847 Genesis Microchip* 200,000 3,284 GlobespanVirata* 180,000 842 Hyperion Solutions* 200,000 4,260 Integrated Silicon Solutions* 95,000 1,126 Intersil, Cl A* 95,000 2,282 IXYS* 300,000 2,445 Kulicke & Soffa Industries* 230,500 3,365 M-Systems Flash Disk Pioneers* 210,000 1,844 Manhattan Associates* 150,000 4,155 Mercury Computer Systems* 165,000 4,516 Merix* 89,000 1,540 Microsemi* 120,000 1,744 Orbotech* 85,000 2,329 Photon Dynamics* 77,200 3,117 Planar Systems* 100,000 2,290 Power Integrations* 200,000 4,510 Semtech* 140,000 4,603 Silicon Storage Technology* 134,600 1,454 SonicWALL* 184,000 1,124 Technitrol 100,000 2,585 Zoran* 202,500 4,911 -------- 106,099 -------- TRANSPORTATION (4.4%) Atlantic Coast Airlines Holdings* 10,000 218 Genesee & Wyoming, Cl A* 120,600 2,824 Heartland Express* 120,188 2,464 JB Hunt Transport Services* 150,000 4,100 Kansas City Southern* 220,000 3,645 Landstar System* 50,000 5,306 Skywest 110,000 2,563 Werner Enterprises 160,000 2,963 Yellow* 150,000 4,116 -------- 28,199 -------- Total Common Stock (Cost $577,570) 645,900 -------- -------------------------------------------------------------------------------- SHARES VALUE (000) -------------------------------------------------------------------------------- RIGHTS (0.0%) Elan* 190,000 $ 2 -------- Total Rights (Cost $0) 2 -------- WARRANTS (0.0%) Per-Se Technologies, Strike Price $0.05, Expires 07/08/03* 3,664 -- -------- Total Warrants (Cost $0) -- -------- Total Investments (99.7%) (Cost $577,570) 645,902 -------- OTHER ASSETS AND LIABILITIES, NET (0.3%) Investment Advisory Fee Payable (648) Administration Fee Payable (39) Distribution Fee Payable (28) Custodian Fee Payable (3) Other Assets and Liabilities 2,462 -------- Total Other Assets and Liabilities, Net 1,744 -------- NET ASSETS: Paid in Capital -- Trust Shares (unlimited authorization -- no par value) based on 34,333,843 outstanding shares of beneficial interest 526,937 Paid in Capital -- Investor Shares (unlimited authorization -- no par value) based on 1,459,047 outstanding shares of beneficial interest 19,445 Paid in Capital -- Flex Shares (unlimited authorization -- no par value) based on 1,772,813 outstanding shares of beneficial interest 29,847 Accumulated net realized gain on investments 3,085 Net unrealized appreciation on investments 68,332 -------- Total Net Assets (100.0%) $647,646 ======== Net Asset Value, Offering and Redemption Price Per Share-- Trust Shares $17.28 ======== Net Asset Value, Offering and Redemption Price Per Share-- Investor Shares $17.12 ======== Maximum Offering Price Per Shares-- Investor Shares ($17.12 / 96.25%) $17.79 ======== Net Asset Value, Offering and Redemption Price Per Share-- Flex Shares (1) $16.62 ======== THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS. FOR DESCRIPTIONS OF ABBREVIATIONS, PLEASE SEE PAGE 74. 65 STATEMENT OF NET ASSETS -------------------------------------------------------------------------------- STI CLASSIC EQUITY FUNDS MAY 31, 2002 SMALL CAP VALUE EQUITY FUND -------------------------------------------------------------------------------- SHARES VALUE (000) -------------------------------------------------------------------------------- COMMON STOCK (91.6%) BASIC MATERIALS (17.7%) Arch Coal 283,600 $ 6,664 Boise Cascade 88,200 3,138 Carpenter Technology 172,800 5,054 Celanese 254,700 6,026 Edelbrock 12,540 160 Fording 323,400 6,759 Lennox International 257,989 4,283 Lesco 299,200 3,429 LSI Industries 356,250 6,288 Makita ADR 870,600 5,876 Olin 330,600 6,506 Peabody Energy 231,900 6,572 Pennzoil-Quaker State 961,000 20,748 Sappi ADR 547,700 7,996 Siderca ADR 112,800 1,488 SKF ADR 118,100 2,982 Soc Quimica Minera de Chile ADR 202,600 4,733 Texas Industries 290,100 10,940 Wellman 284,000 4,686 -------- 114,328 -------- CAPITAL GOODS (17.0%) ABM Industries 343,500 6,200 Allete 294,469 8,840 AO Smith 105,700 3,150 BF Goodrich 154,900 5,175 BHA Group Holdings 131,200 2,362 Briggs & Stratton 77,600 3,183 C&D Technologies 220,000 4,776 Chemed 102,600 3,765 Cummins 64,000 2,356 Empresa Bras de Aeronautica ADR 843,216 19,900 Lubrizol 276,800 9,691 Minerals Technologies 44,800 2,354 Oshkosh Truck 82,100 4,901 Pioneer Standard Electronics 259,900 2,950 Quixote 312,000 5,460 Roper Industries 78,200 3,050 RPM 6,600 104 Standard Register 77,900 2,571 Tecumseh Products, Cl A 63,300 2,943 United States Steel 403,600 8,290 Valspar 121,000 5,675 York International 65,800 2,333 -------- 110,029 -------- -------------------------------------------------------------------------------- SHARES VALUE (000) -------------------------------------------------------------------------------- CONSUMER CYCLICALS (12.9%) Bassett Furniture Industries 225,800 $ 4,146 Blyth 227,100 6,332 Dial 177,500 3,585 Fairmont Hotels & Resorts 422,200 11,822 Harman International Industries 184,814 10,220 Industrie Natuzzi ADR 175,200 2,584 Intrawest 289,500 5,199 John H. Harland 232,000 7,570 John Wiley & Sons, Cl A 107,300 2,764 Liz Claiborne 51,200 1,568 Media General, Cl A 38,000 2,474 Movado Group 149,000 3,204 Phillips-Van Heusen 350,500 5,503 Robbins & Myers 153,000 3,689 Stewart & Stevenson Services 261,400 4,394 Sturm Ruger 134,100 1,859 Thomas Industries 110,200 3,179 Wallace Computer Services 92,500 1,983 Wolverine World Wide 85,700 1,514 -------- 83,589 -------- CONSUMER STAPLES (7.1%) Church & Dwight 552,300 19,204 Ingles Markets, Cl A 225,800 2,687 Interstate Bakeries 170,900 4,630 JM Smucker* 370,695 12,344 Sensient Technologies 292,635 6,985 Weis Markets 2,000 74 -------- 45,924 -------- ENERGY (4.2%) Century Aluminum 33,900 551 Cia Siderurgica ADR 160,000 3,018 ENSCO International 123,300 4,038 Keithley Instruments 227,800 4,171 Noble Energy 110,800 4,228 Penn Virginia 86,900 3,084 Southern Peru Copper 302,200 4,216 UGI 123,500 3,828 -------- 27,134 -------- FINANCE (12.1%) American Financial Group 173,000 4,626 Banner 152,700 3,330 City National 94,400 5,122 Colonial BancGroup 401,000 6,175 Community First Bankshares 129,965 3,536 66 -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- SHARES VALUE (000) -------------------------------------------------------------------------------- FINANCE--CONTINUED FNB 154,413 $ 4,787 Glacier Bancorp 226,134 5,156 Horizon Financial 239,365 3,411 Klamath First Bancorp 216,100 3,522 Pacific Northwest Bancorp 111,600 3,211 PXRE Group 204,500 4,939 Riggs National 196,200 2,945 Scottish Annuity & Life Holdings 241,500 4,830 Seacoast Banking 90,100 4,628 Student Loan 45,400 4,199 Washington Federal 164,906 4,520 West Coast Bancorp 267,153 4,007 Wilmington Trust 80,700 5,037 -------- 77,981 -------- HEALTH CARE (6.1%) Alpharma, Cl A 620,329 12,810 Cambrex 304,300 13,286 Instrumentarium ADR* 4,400 111 Invacare 203,600 7,688 Mentor 141,400 5,407 -------- 39,302 -------- SERVICES (3.9%) Hollinger International 398,000 4,676 Pittston Brink's Group 765,900 20,687 -------- 25,363 -------- TECHNOLOGY (6.9%) Autodesk 1,401,300 18,918 Harris 658,528 24,833 Helix Technology 35,900 849 -------- 44,600 -------- TRANSPORTATION (3.7%) CHC Helicopter, Cl A* 396,200 7,845 CP Railway* 161,400 3,635 CP Ships* 893,000 10,001 UsFreightways 77,500 2,702 -------- 24,183 -------- Total Common Stock (Cost $470,670) 592,433 -------- -------------------------------------------------------------------------------- SHARES/FACE AMOUNT (000) VALUE (000) -------------------------------------------------------------------------------- CASH EQUIVALENT (0.0%) SEI Daily Income Trust Prime Obligation Fund, Cl A 37,201 $ 37 -------- Total Cash Equivalent (Cost $37) 37 -------- REPURCHASE AGREEMENT (8.2%) Morgan Stanley Dean Witter 1.780%, dated 05/31/02, matures 06/03/02, repurchase price $53,022,233 (collateralized by FNMA obligations: total market value $54,075,338) (C) $53,014 53,014 -------- Total Repurchase Agreement (Cost $53,014) 53,014 -------- Total Investments (99.8%) (Cost $523,721) 645,484 -------- OTHER ASSETS AND LIABILITIES, NET (0.2%) Investment Advisory Fee Payable (632) Administration Fee Payable (38) Distribution Fee Payable (20) Custodian Fee Payable (3) Other Assets and Liabilities 2,116 -------- Total Other Assets and Liabilities, Net 1,423 -------- NET ASSETS: Paid in Capital -- Trust Shares (unlimited authorization -- no par value) based on 42,240,400 outstanding shares of beneficial interest 532,265 Paid in Capital -- Flex Shares (unlimited authorization -- no par value) based on 2,267,223 outstanding shares of beneficial interest 37,616 Undistributed net investment income 1,041 Accumulated net realized loss on investments (45,778) Net unrealized appreciation on investments 121,763 -------- Total Net Assets (100.0%) $646,907 ======== Net Asset Value, Offering and Redemption Price Per Share-- Trust Shares $14.54 ======== Net Asset Value, Offering and Redemption Price Per Share-- Flex Shares (1) $14.43 ======== THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS. FOR DESCRIPTIONS OF ABBREVIATIONS, PLEASE SEE PAGE 74. 67 STATEMENT OF NET ASSETS -------------------------------------------------------------------------------- STI CLASSIC EQUITY FUNDS MAY 31, 2002 TAX SENSITIVE GROWTH STOCK FUND -------------------------------------------------------------------------------- SHARES VALUE (000) -------------------------------------------------------------------------------- COMMON STOCK (98.6%) BASIC MATERIALS (3.3%) Alcoa 127,910 $ 4,474 E.I. du Pont de Nemours 100,000 4,600 Rohm & Haas 125,000 4,710 -------- 13,784 -------- CAPITAL GOODS (9.8%) 3M 47,566 5,966 Applied Materials* 171,406 3,802 Boeing 50,000 2,132 General Electric 322,344 10,038 Illinois Tool Works 90,000 6,393 Lockheed Martin 120,000 7,446 Tyco International 50,000 1,097 United Technologies 53,080 3,656 -------- 40,530 -------- COMMUNICATION SERVICES (4.3%) AT&T 100,000 1,197 BellSouth 87,443 2,910 Comcast, Cl A* 40,000 1,126 Qualcomm* 40,000 1,266 SBC Communications 167,743 5,752 Verizon Communications 125,000 5,375 -------- 17,626 -------- CONSUMER CYCLICALS (16.3%) AOL Time Warner* 105,167 1,967 Bed Bath & Beyond* 150,000 5,145 Best Buy* 87,500 4,042 Christopher & Banks* 75,000 2,984 Coach* 80,000 4,181 Colgate-Palmolive 25,000 1,355 Ford Motor 89,688 1,583 Harley-Davidson 100,000 5,258 Home Depot 67,813 2,827 Kohl's* 60,000 4,500 Liz Claiborne 100,000 3,063 Ltd Brands 200,000 4,198 Office Depot* 200,000 3,656 Target 45,000 1,865 Viacom, Cl B* 100,000 4,896 Wal-Mart Stores 171,881 9,299 Walgreen 126,339 4,834 Walt Disney 75,000 1,718 -------- 67,371 -------- -------------------------------------------------------------------------------- SHARES VALUE (000) -------------------------------------------------------------------------------- CONSUMER STAPLES (7.7%) Anheuser-Busch 85,000 $ 4,387 Clorox 85,000 3,893 McDonald's 54,670 1,637 PepsiCo 135,000 7,017 Philip Morris 119,774 6,857 Procter & Gamble 90,000 8,060 -------- 31,851 -------- ENERGY (6.4%) Apache 82,500 4,593 ChevronTexaco 60,632 5,290 Exxon Mobil 253,618 10,127 Royal Dutch Petroleum, NY Shares 69,975 3,849 Schlumberger 50,000 2,582 -------- 26,441 -------- FINANCE (18.7%) Allstate 25,000 962 American Express 96,180 4,089 American International Group 123,277 8,256 Bank of America 112,371 8,519 Bank of New York 125,000 4,537 Bank One 50,000 2,032 Citigroup 230,946 9,972 Fannie Mae 72,521 5,802 Fifth Third Bancorp 80,000 5,214 FleetBoston Financial 40,000 1,410 Freddie Mac 85,000 5,572 Household International 75,000 3,836 JP Morgan Chase 75,551 2,716 SLM 65,000 6,271 US Bancorp 100,000 2,365 Wells Fargo 108,269 5,673 -------- 77,226 -------- HEALTH CARE (16.6%) Abbott Laboratories 42,294 2,009 Amgen* 50,000 2,381 Bristol-Myers Squibb 67,495 2,100 Eli Lilly 50,000 3,235 Guidant* 125,000 5,000 Johnson & Johnson 141,732 8,695 King Pharmaceuticals* 125,000 3,381 Medtronic 121,963 5,629 Merck 104,572 5,971 Pfizer 277,793 9,612 Pharmacia 50,000 2,159 68 -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- SHARES/FACE AMOUNT (000) VALUE (000) -------------------------------------------------------------------------------- HEALTH CARE--CONTINUED Schering-Plough 81,383 $ 2,153 Tenet Healthcare* 50,000 3,725 UnitedHealth Group 40,000 3,632 Wellpoint Health Networks* 70,000 5,191 Wyeth 62,640 3,477 -------- 68,350 -------- TECHNOLOGY (15.5%) Adobe Systems 90,000 3,249 Automatic Data Processing 50,000 2,596 BMC Software* 150,000 2,536 Catapult Communications* 25,000 469 Cisco Systems* 279,479 4,410 Dell Computer* 110,000 2,954 Electronic Data Systems 115,000 6,074 EMC-Mass* 124,720 904 Intel 344,886 9,526 International Business Machines 64,885 5,220 Linear Technology 96,291 3,587 Microsoft* 209,428 10,662 Network Appliance* 150,000 1,952 Oracle* 181,308 1,436 Sun Microsystems* 140,850 970 Texas Instruments 134,618 3,859 Xilinx* 100,000 3,526 -------- 63,930 -------- Total Common Stock (Cost $370,544) 407,109 -------- REPURCHASE AGREEMENT (1.1%) Morgan Stanley Dean Witter 1.780%, dated 05/31/02, matures 06/03/02, repurchase price $4,377,633 (collateralized by FNMA obligation: total market value $4,464,762) (C) $ 4,377 4,377 -------- Total Repurchase Agreement (Cost $4,377) 4,377 -------- Total Investments (99.7%) (Cost $374,921) 411,486 -------- OTHER ASSETS AND LIABILITIES, NET (0.3%) Investment Advisory Fee Payable (415) Administration Fee Payable (25) Distribution Fee Payable (147) Custodian Fee Payable (2) Other Assets and Liabilities 1,783 -------- Total Other Assets and Liabilities, Net 1,194 -------- -------------------------------------------------------------------------------- VALUE (000) -------------------------------------------------------------------------------- NET ASSETS: Paid in Capital -- Trust Shares (unlimited authorization -- no par value) based on 10,526,192 outstanding shares of beneficial interest $331,873 Paid in Capital -- Flex Shares (unlimited authorization -- no par value) based on 7,482,227 outstanding shares of beneficial interest 251,220 Accumulated net investment loss (1,369) Accumulated net realized loss on investments (205,609) Net unrealized appreciation on investments 36,565 -------- Total Net Assets (100.0%) $412,680 ======== Net Asset Value, Offering and Redemption Price Per Share-- Trust Shares $23.25 ======== Net Asset Value, Offering and Redemption Price Per Share-- Flex Shares (1) $22.45 ======== THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS. FOR DESCRIPTIONS OF ABBREVIATIONS, PLEASE SEE PAGE 74. 69 STATEMENT OF NET ASSETS -------------------------------------------------------------------------------- STI CLASSIC EQUITY FUNDS MAY 31, 2002 VALUE INCOME STOCK FUND -------------------------------------------------------------------------------- SHARES VALUE (000) -------------------------------------------------------------------------------- COMMON STOCK (89.7%) BASIC MATERIALS (5.8%) Alcoa 229,400 $ 8,025 Eastman Chemical 272,564 12,606 International Paper 296,100 12,762 Praxair 78,400 4,390 Rohm & Haas 260,400 9,812 -------- 47,595 -------- CAPITAL GOODS (9.9%) 3M 38,400 4,817 Dover 419,300 14,923 Honeywell International 236,300 9,263 Ingersoll-Rand, Cl A 167,100 8,413 Masco 456,400 12,168 Pall 207,200 4,716 Parker Hannifin 90,800 4,449 Rockwell Collins 250,800 6,521 Textron 173,901 8,159 Tyco International 169,200 3,714 Volvo ADR 205,300 3,835 -------- 80,978 -------- COMMUNICATION SERVICES (7.9%) Alltel 164,900 8,491 BellSouth 273,300 9,095 CenturyTel 290,500 9,006 SBC Communications 550,900 18,890 Verizon Communications 459,610 19,763 -------- 65,245 -------- CONSUMER CYCLICALS (9.8%) Ford Motor 541,000 9,549 Gannett 209,400 15,872 Genuine Parts 214,300 7,833 Interpublic Group 411,600 13,583 Ltd Brands 410,700 8,620 McGraw-Hill 119,700 7,557 Newell Rubbermaid 258,000 8,811 Walt Disney 374,900 8,589 -------- 80,414 -------- CONSUMER STAPLES (7.6%) Clorox 135,100 6,187 Estee Lauder, Cl A 173,400 6,372 HJ Heinz 296,700 12,055 Kimberly-Clark 253,000 16,425 McDonald's 289,600 8,671 PepsiCo 237,700 12,356 -------- 62,066 -------- -------------------------------------------------------------------------------- SHARES VALUE (000) -------------------------------------------------------------------------------- ENERGY (10.9%) Anadarko Petroleum 168,300 $ 8,541 BP ADR 384,100 19,616 Conoco 421,084 11,319 Diamond Offshore Drilling 342,000 11,535 Exxon Mobil 374,900 14,970 Phillips Petroleum 259,900 14,957 Valero Energy 208,400 8,232 -------- 89,170 -------- FINANCE (20.3%) Aflac 157,000 5,049 Allstate 310,700 11,956 AMBAC Financial Group 99,900 6,729 American Express 215,300 9,152 American International Group 206,904 13,856 AmSouth Bancorp 363,868 8,078 Bank of America 108,500 8,225 Chubb 216,000 16,235 Citigroup 472,400 20,398 FleetBoston Financial 225,747 7,955 Jefferson-Pilot 165,000 7,856 JP Morgan Chase 341,225 12,267 Keycorp 234,400 6,399 Lincoln National 190,400 8,534 Merrill Lynch 113,200 4,608 Morgan Stanley Dean Witter 168,400 7,656 PNC Financial Services Group 101,700 5,721 Torchmark 157,000 6,337 -------- 167,011 -------- HEALTH CARE (5.7%) Becton Dickinson 388,500 14,607 Bristol-Myers Squibb 408,000 12,697 Pharmacia 302,794 13,078 Schering-Plough 242,500 6,414 -------- 46,796 -------- TECHNOLOGY (6.2%) Avnet 177,200 4,099 Electronic Data Systems 157,400 8,314 Hewlett-Packard 668,800 12,767 Koninklijke Philips Electronics 513,400 15,710 Motorola 642,000 10,265 -------- 51,155 -------- TRANSPORTATION (2.0%) Delta Air Lines 315,300 8,277 Norfolk Southern 393,100 8,322 -------- 16,599 -------- 70 -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- SHARES/FACE AMOUNT (000) VALUE (000) -------------------------------------------------------------------------------- UTILITIES (3.6%) Allegheny Energy 173,300 $ 6,227 FPL Group 132,900 8,371 PPL 207,600 7,347 Progress Energy 148,400 7,694 -------- 29,639 -------- Total Common Stock (Cost $679,995) 736,668 -------- REPURCHASE AGREEMENTS (10.1%) Greenwich Capital 1.770%, dated 05/31/02, matures 06/03/02, repurchase price $59,407,746 (collateralized by U.S. Treasury Note: total market value $60,589,371) (C) $59,399 59,399 UBS Warburg 1.770%, dated 05/31/02, matures 06/03/02, repurchase price $23,217,947 (collateralized by U.S. Treasury Bill: total market value $23,683,036) (C) 23,214 23,214 -------- Total Repurchase Agreements (Cost $82,613) 82,613 -------- Total Investments (99.8%) (Cost $762,608) 819,281 -------- OTHER ASSETS AND LIABILITIES, NET (0.2%) Investment Advisory Fee Payable (552) Administration Fee Payable (47) Distribution Fee Payable (70) Custodian Fee Payable (3) Other Assets and Liabilities 2,494 -------- Total Other Assets and Liabilities, Net 1,822 -------- -------------------------------------------------------------------------------- VALUE (000) -------------------------------------------------------------------------------- NET ASSETS: Paid in Capital -- Trust Shares (unlimited authorization -- no par value) based on 62,098,943 outstanding shares of beneficial interest $761,737 Paid in Capital -- Investor Shares (unlimited authorization -- no par value) based on 6,873,666 outstanding shares of beneficial interest 88,423 Paid in Capital -- Flex Shares (unlimited authorization -- no par value) based on 5,449,119 outstanding shares of beneficial interest 99,123 Undistributed net investment income 1,409 Accumulated net realized loss on investments (186,262) Net unrealized appreciation on investments 56,673 -------- Total Net Assets (100.0%) $821,103 ======== Net Asset Value, Offering and Redemption Price Per Share -- Trust Shares $11.05 ======== Net Asset Value and Redemption Price Per Share -- Investor Shares $11.01 ======== Maximum Offering Price Per Share -- Investor Shares ($11.01 / 96.25%) $11.44 ======== Net Asset Value, Offering and Redemption Price Per Share-- Flex Shares (1) $10.90 ======== THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS. FOR DESCRIPTIONS OF ABBREVIATIONS, PLEASE SEE PAGE 74. 71 SCHEDULE OF INVESTMENTS -------------------------------------------------------------------------------- STI CLASSIC EQUITY FUNDS MAY 31, 2002 VANTAGE FUND -------------------------------------------------------------------------------- SHARES VALUE (000) -------------------------------------------------------------------------------- COMMON STOCK (77.2%) BASIC MATERIALS (15.3%) AK Steel Holding* 17,000 $ 237 Alcoa 4,000 140 International Flavors & Fragrances 5,000 170 International Paper 6,000 259 Nucor 4,200 280 Praxair 2,000 112 Weyerhaeuser 4,300 282 ------- 1,480 ------- CAPITAL GOODS (7.3%) Boeing 6,745 288 General Electric 3,466 108 Masco 9,500 253 NVR* 186 62 ------- 711 ------- COMMUNICATION SERVICES (2.6%) Turkcell Iletisim Hizmet ADR* 12,000 172 Verizon Communications 1,803 77 ------- 249 ------- CONSUMER CYCLICALS (17.8%) Autozone* 4,000 328 Centex 3,500 188 Gillette 7,000 249 Lennar 3,000 164 Linens `N Things* 7,500 230 Pier 1 Imports 14,900 301 WCI Communities* 9,000 261 ------- 1,721 ------- CONSUMER STAPLES (13.8%) Hershey Foods 2,240 149 McDonald's 11,200 335 Philip Morris 7,503 430 Procter & Gamble 857 77 Tupperware 7,920 175 Wm. Wrigley Jr. 2,915 167 ------- 1,333 ------- ENERGY (1.9%) Exxon Mobil 4,564 182 ------- FINANCE (7.0%) Aflac 2,000 64 AMBAC Financial Group 2,000 135 Franklin Resources 575 25 PMI Group 2,335 200 SLM+ 2,625 253 ------- 677 ------- -------------------------------------------------------------------------------- SHARES VALUE (000) -------------------------------------------------------------------------------- HEALTH CARE (9.7%) Eon Labs* 5,000 $ 80 Johnson & Johnson 2,075 128 Laboratory Corporation of America Holdings* 4,565 224 Pfizer 4,161 144 Quest Diagnostics*+ 4,190 366 ------- 942 ------- TECHNOLOGY (1.8%) Motorola 11,000 176 ------- Total Common Stock (Cost $7,471) 7,471 ------- REGISTERED INVESTMENT COMPANY (2.7%) Korea Fund 15,000 259 ------- Total Registered Investment Company (Cost $286) 259 ------- Total Investments (79.9%) (Cost $7,757) 7,730 ------- SECURITIES SOLD SHORT (-34.7%) COMMUNICATION SERVICES (-1.8%) AT&T (5,554) (66) Nokia Oyj ADR (7,533) (105) ------- (171) ------- CONSUMER CYCLICALS (-21.9%) Abercrombie & Fitch, Cl A* (6,667) (193) American Eagle Outfitters* (8,000) (178) American Greetings, Cl A (4,000) (83) AnnTaylor Stores* (3,667) (104) Chico's FAS* (4,757) (182) Coach* (1,667) (87) Hasbro (7,627) (117) Jones Apparel Group* (2,667) (106) Liz Claiborne (2,667) (82) Ltd Brands (6,667) (140) Mattel (4,793) (102) Pacific Sunwear of California* (3,333) (65) PF Chang's China Bistro* (2,333) (76) Ross Stores (2,000) (84) Talbots (3,333) (124) Target (3,333) (138) Tiffany (3,333) (125) Toys "R" Us* (7,487) (137) ------- (2,123) ------- CONSUMER STAPLES (-0.8%) Clorox (1,667) (76) ------- 72 -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- SHARES VALUE (000) -------------------------------------------------------------------------------- ENERGY (-3.8%) GlobalSantaFe (3,333) $ (113) Nabors Industries* (2,667) (117) Royal Dutch Petroleum, NY Shares (2,460) (135) ------- (365) ------- FINANCE (-2.0%) State Street (4,130) (192) ------- REAL ESTATE INVESTMENT TRUSTS (-2.5%) Crescent Real Estate (7,687) (150) Post Properties (3,137) (97) ------- (247) ------- SERVICE (-1.9%) TMP Worldwide* (3,600) (97) W.W. Grainger (1,667) (88) ------- (185) ------- Total Securities Sold Short (Proceeds $-3,318) $(3,359) ======= THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS. FOR DESCRIPTIONS OF ABBREVIATIONS, PLEASE SEE PAGE 74. 73 -------------------------------------------------------------------------------- STI CLASSIC EQUITY FUNDS MAY 31, 2002 KEY TO ABBREVIATIONS USED IN THE STATEMENTS OF NET ASSETS AND SCHEDULES OF INVESTMENTS ADR American Depository Receipt Cl Class CV Convertible Security FHLB Federal Home Loan Bank FNMA Federal National Mortgage Association GNMA Government National Mortgage Association MTN Medium Term Note RNC Risparmio Non-Convertible Ser Series * Non-income producing security + All or a portion of this security is held as collateral for short sales. ++ Security in default on interest payments. (A) Zero Coupon Bond (B) Private Placement Security (C) 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. (2) Affiliated investments Amounts designated as "--" are either $0 or have been rounded to $0. 74
STATEMENTS OF ASSETS AND LIABILITIES (000) ------------------------------------------------------------------------------------------------------------------------------------ STI CLASSIC EQUITY FUNDS MAY 31, 2002 ---------------- ------------- ------------- --------- INFORMATION INTERNATIONAL INTERNATIONAL AND TECHNOLOGY EQUITY EQUITY INDEX VANTAGE FUND FUND FUND FUND ---------------- ------------- ------------- --------- Assets: Investments at Market Value (Cost $42,616, $247,595, $309,035, $7,757, respectively) ........................ $ 41,368 $248,846 $291,318 $ 7,730 Cash 488 17,999+ 1,929+ 1,540 Foreign Currency (Cost $2,860, $2,621, respectively) ....... -- 2,862 2,690 -- Receivable for Investment Securities Sold 8,483 2,781 30,756 8,311 Deposits with Brokers for Securities Sold Short -- Note 2 . -- -- -- 3,575 Receivable for Portfolio Shares Purchased ................. 7 1,876 140 -- Currency Contracts Receivable ............................. -- 1,985 1,234 -- Reclaim Receivable ........................................ -- 440 430 -- Other Assets .............................................. -- 132 104 -- Accrued Income ............................................ 3 544 603 7 -------- -------- -------- ------- Total Assets .............................................. 50,349 277,465 329,204 21,163 -------- -------- -------- ------- Liabilities: Securities Sold Short at Value (proceeds $-3,318) -- Note 2 -- -- -- 3,359 Payable for Investment Securities Purchased .............. 7,151 10,124 32,248 8,110 Accrued Expenses ......................................... 71 325 316 18 Payable for Portfolio Shares Redeemed .................... 208 166 662 -- Other Liabilities ........................................ -- 2,020 1,307 -- -------- -------- -------- ------- Total Liabilities ........................................ 7,430 12,635 34,533 11,487 -------- -------- -------- ------- Total Net Assets ......................................... $ 42,919 $264,830 $294,671 $ 9,676 ======== ======== ======== ======= Net Assets: Paid in Capital -- Trust Shares (unlimited authorization -- no par value) based on 3,978,777, 27,176,963, 29,496,522 and 913,405, outstanding shares of beneficial interest, respectively .................................. $ 89,495 $299,158 $364,504 $9,251 Paid in Capital -- Investor Shares (unlimited authorization -- no par value) based on 572,507, and 334,343 outstanding shares of beneficial interest, respectively . -- 5,970 1,793 -- Paid in Capital -- Flex Shares (unlimited authorization -- no par value) based on 1,380,711, 750,388, 369,820, and 89,224 outstanding shares of beneficial interest, respectively 29,276 11,525 5,316 914 Accumulated net investment income (loss) .................. -- 699 (213) -- Accumulated net realized loss on investments .............. (74,604) (53,778) (59,077) (421) Net unrealized appreciation (depreciation) on investments . (1,248) 1,251 (17,717) (68) Net unrealized appreciation on foreign currency and translation of other assets and liabilities in foreign currency investments ............................ -- 5 65 -- -------- -------- -------- ------- Total Net Assets $ 42,919 $264,830 $294,671 $ 9,676 ======== ======== ======== ======= Net Asset Value, Offering and Redemption Price Per Share -- Trust Shares ................................. $8.06 $9.31 $9.76 $9.65 ===== ===== ====== ===== Net Asset Value and Redemption Price Per Share -- Investor Shares .......................... -- $9.21 $9.64 -- ===== ===== ====== ===== Maximum Offering Price Per Share -- Investor Shares ($9.21/96.25%, $9.64/96.25%, respectively) ................ -- $9.57 $10.02 -- ===== ===== ====== ===== Net Asset Value, Offering and Redemption Price Per Share -- Flex Shares (1) ........................... $7.86 $8.75 $9.48 $9.64 ===== ===== ====== =====
(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. + The cash balances for the International Equity Fund and the International Equity Index Fund are swept daily by Bank of New York into an overnight account. THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS. 75
STATEMENTS OF OPERATIONS (000) ------------------------------------------------------------------------------------------------------------------------------------ STI CLASSIC EQUITY FUNDS FOR THE YEAR ENDED MAY 31, 2002 CAPITAL BALANCED APPRECIATION FUND FUND -------------- ------------- Income: Dividend Income* .................................................................... $ 992 $ 9,230 Interest Income ..................................................................... 7,437 705 Less: Foreign Taxes Withheld ........................................................ (8) (69) -------- --------- Total Income ........................................................................ 8,421 9,866 -------- --------- Expenses: Investment Advisory Fees ............................................................ 2,857 16,572 Administrator Fees .................................................................. 207 993 Transfer Agent Fees-- Trust Shares .................................................. 19 18 Transfer Agent Fees-- Investor Shares ............................................... 19 122 Transfer Agent Fees-- Flex Shares ................................................... 84 157 Transfer Agent Out of Pocket Expenses and Shareholder Servicing Fees ................ 17 80 Printing Fees ....................................................................... 13 55 Custody Fees ........................................................................ 7 32 Professional Fees ................................................................... 12 55 Trustee Fees ........................................................................ 3 13 Registration Fees ................................................................... 13 58 Distribution Fees-- Investor Shares ................................................. 23 1,220 Distribution Fees-- Flex Shares ..................................................... 707 1,067 Other Fees .......................................................................... 8 33 -------- --------- Total Expenses ...................................................................... 3,989 20,475 -------- --------- Less:Investment Advisory Fees Waived ................................................ (85) (288) Less: Distribution Fees Waived-- Investor Shares .................................... (16) (159) Less: Distribution Fees Waived-- Flex Shares ........................................ (30) (20) -------- --------- Net Expenses ........................................................................ 3,858 20,008 -------- --------- Net Investment Income (Loss) ........................................................ 4,563 (10,142) -------- --------- Net Realized and Unrealized Gain (Loss) on Investments: Capital Gain Received from Investments in Affiliated Investment Companies ........... -- -- Net Realized Gain (Loss) on Securities Sold* ........................................ 2,199 (143) Net Realized Gain (Loss) on Foreign Currency Transactions ........................... -- -- Net Change in Unrealized Appreciation on Foreign Currency and Translation of Other Assets and Liabilities in Foreign Currency ................. -- -- Net Change in Unrealized Appreciation (Depreciation) on Investments* ................ (17,949) (165,813) -------- --------- Total Net Realized and Unrealized Loss on Investments ............................... (15,750) (165,956) -------- --------- Net Decrease in Net Assets from Operations .......................................... $(11,187) $(176,098) ======== ========= * Dividend Income, net realized gain (loss) on securities sold and net change in unrealized appreciation (depreciation) on investments for the Life Vision Funds are primarily attributable to the underlying investments in affiliated investment companies. Amounts designated as "--" are either $0 or have been rounded to $0.
76
--------------------------------------------------------------------------------------------------------------------------- GROWTH AND INFORMATION AND INTERNATIONAL INTERNATIONAL LIFE VISION INCOME TECHNOLOGY EQUITY EQUITY AGGRESSIVE GROWTH FUND FUND FUND INDEX FUND FUND ---------- --------------- ------------- -------------- ------------------ $ 14,784 $ 105 $ 4,202 $ 4,778 $ 115 235 82 39 14 -- (9) -- (528) (774) -- -------- -------- -------- -------- ------- 15,010 187 3,713 4,018 115 -------- -------- -------- -------- ------- 8,312 772 2,389 2,178 68 636 48 132 167 19 18 17 16 16 18 46 -- 3 2 -- 138 43 4 2 -- 52 4 74 62 2 35 1 7 -- 1 21 2 228 306 1 35 2 8 4 1 8 1 1 3 -- 29 3 9 12 1 95 -- 61 41 -- 837 154 10 -- -- 14 -- 8 -- 2 -------- -------- -------- -------- ------- 10,276 1,047 2,950 2,793 113 -------- -------- -------- -------- ------- -- -- -- (208) (45) (69) -- (19) (14) -- (189) (50) (3) -- -- -------- -------- -------- -------- ------- 10,018 997 2,928 2,571 68 -------- -------- -------- -------- ------- 4,992 (810) 785 1,447 47 -------- -------- -------- -------- ------- -- -- -- -- 80 (2,065) (34,411) (31,939) (36,218) (1,052) -- -- 48 (321) -- -- -- 151 61 -- (81,292) (3,329) 12,345 8,423 (863) -------- -------- -------- -------- ------- (83,357) (37,740) (19,395) (28,055) (1,835) -------- -------- -------- -------- ------- $(78,365) $(38,550) $(18,610) $(26,608) $(1,788) -------- -------- -------- -------- -------
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS. 77
STATEMENTS OF OPERATIONS (000) ------------------------------------------------------------------------------------------------------------------------------------ STI CLASSIC EQUITY FUNDS FOR THE YEAR ENDED MAY 31, 2002 LIFE VISION LIFE VISION MID-CAP GROWTH AND INCOME MODERATE EQUITY FUND GROWTH FUND FUND ----------------- ------------- ---------- Income: Dividend Income* ............................................... $ 767 $ 1,693 $ 993 Interest Income ................................................ -- -- 1,050 Less: Foreign Tax Withheld ..................................... -- -- (4) ------- ------- -------- Total Income ................................................... 767 1,693 2,039 ------- ------- -------- Expenses: Investment Advisory Fees ....................................... 128 205 2,245 Administrator Fees ............................................. 35 57 134 Transfer Agent Fees-- Trust Shares ............................. 18 18 17 Transfer Agent Fees-- Investor Shares .......................... -- -- 25 Transfer Agent Fees-- Flex Shares .............................. -- -- 35 Transfer Agent Out of Pocket Expenses .......................... 3 5 11 Printing Fees .................................................. 3 3 -- Custody Fees ................................................... 1 2 4 Professional Fees .............................................. 2 3 7 Trustee Fees ................................................... 1 1 2 Registration Fees .............................................. 4 3 9 Distribution Fees-- Investor Shares ............................ -- -- 47 Distribution Fees-- Flex Shares ................................ -- -- 132 Dividends on Securities Sold Short ............................. -- -- -- Other Fees 2 2 -- ------- ------- -------- Total Expenses ................................................. 197 299 2,668 ------- ------- -------- Less: Investment Advisory Fees Waived .......................... (69) (94) (49) Less: Distribution Fees Waived-- Investor Shares ............... -- -- (20) Less: Distribution Fees Waived-- Flex Shares ................... -- -- (26) ------- ------- -------- Net Expenses ...................................................... 128 205 2,573 ------- ------- -------- Net Investment Income (Loss) ................................... 639 1,488 (534) ------- ------- -------- Net Realized and Unrealized Gain (Loss) on Investments: Capital Gain Received From Investments in Affiliated Investment Companies .................................................. 73 150 -- Net Realized Gain (Loss) on Securities Sold* ................... (2,267) (4,949) (32,539) Net Change in Unrealized Appreciation (Depreciation) on Investments* .............................................. 290 2,662 10,660 ------- ------- -------- Total Net Realized and Unrealized Gain (Loss) on Investments .. (1,904) (2,137) (21,879) ------- ------- -------- Net Increase (Decrease) in Net Assets from Operations .......... $(1,265) $ (649) $(22,413) ======= ======= ======== * Dividend Income, net realized gain (loss) on securities sold and net change in unrealized appreciation (depreciation) on investments for the Life Vision Funds are primarily attributable to the underlying investments in affiliated investment companies. (1) The Mid-Cap Value Equity Fund and the Vantage Fund commenced operations on November 30, 2001. Amounts designated as "--" are either $0 or have been rounded to $0.
78
--------------------------------------------------------------------------------------------------------------------------- MID CAP SMALL CAP SMALL CAP TAX SENSITIVE VALUE VALUE EQUITY GROWTH STOCK VALUE EQUITY GROWTH STOCK INCOME STOCK VANTAGE FUND (1) FUND FUND FUND FUND FUND (1) ------------ ------------ ------------ ------------- ------------ -------- $ 725 $ 1,262 $ 8,479 $ 5,933 $ 14,768 $ 15 138 166 1,168 168 1,474 28 (4) (11) (115) (7) (105) -- ------ -------- ------- -------- -------- ----- 859 1,417 9,532 6,094 16,137 43 ------ -------- ------- -------- -------- ----- 682 6,800 5,714 6,100 6,380 55 37 407 342 366 549 2 4 23 18 17 19 4 -- 36 -- -- 68 -- 5 43 47 240 98 1 3 34 29 30 45 -- 5 25 25 15 31 1 1 14 11 12 18 -- 5 24 22 17 30 1 1 5 5 5 7 -- 12 24 28 20 24 1 -- 128 -- -- 256 -- 13 256 172 1,945 602 1 -- -- -- -- -- 9 2 12 9 3 30 -- ------ -------- ------- -------- -------- ----- 770 7,831 6,422 8,770 8,157 75 ------ -------- ------- -------- -------- ----- (55) -- -- -- -- (3) -- (70) -- -- (23) -- (9) (25) (36) (101) (21) (1) ------ -------- ------- -------- -------- ----- 706 7,736 6,386 8,669 8,113 71 ------ -------- ------- -------- -------- ----- 153 (6,319) 3,146 (2,575) 8,024 (28) ------ -------- ------- -------- -------- ----- -- -- -- -- -- -- 2,242 12,904 7,370 (34,842) 18,010 (421) 3,288 (43,483) 82,755 (45,038) (60,823) (68) ------ -------- ------- -------- -------- ----- 5,530 (30,579) 90,125 (79,880) (42,813) (489) ------ -------- ------- -------- -------- ----- $5,683 $(36,898) $93,271 $(82,455) $(34,789) $(517) ====== ======== ======= ======== ======== =====
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS. 79
STATEMENTS OF CHANGES IN NET ASSETS (000) ------------------------------------------------------------------------------------------------------------------------------------ STI CLASSIC EQUITY FUNDS FOR THE YEARS ENDED MAY 31, CAPITAL BALANCED FUND APPRECIATION FUND -------------------------- ------------------------- 06/01/01- 06/01/00- 06/01/01- 06/01/00- 05/31/02 05/31/01 05/31/02 05/31/01 --------- -------- -------- -------- Operations: Net Investment Income (Loss) ................................... $ 4,563 $ 5,810 $ (10,142) $ (6,991) Net Realized Gain (Loss) on Securities Sold .................... 2,199 7,461 (143) 102,081 Net Realized Gain (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 ............................................... (17,949) (3,904) (165,813) (148,100) -------- -------- ---------- ---------- Increase (Decrease) in Net Assets from Operations .............. (11,187) 9,367 (176,098) (53,010) -------- -------- ---------- ---------- Distributions to Shareholders: Net Investment Income: Trust Shares .................................................. (4,065) (5,165) -- -- Investor Shares ............................................... (129) (180) -- -- Flex Shares ................................................... (591) (821) -- -- Capital Gains: Trust Shares .................................................. (5,781) (4,937) (10,431) (186,922) Investor Shares ............................................... (213) (191) (1,696) (39,562) Flex Shares ................................................... (1,844) (1,368) (1,028) (20,425) -------- -------- ---------- ---------- Total Distributions ............................................. (12,623) (12,662) (13,155) (246,909) -------- -------- ---------- ---------- Capital Transactions (1): Trust Shares: Proceeds from Shares Issued ................................... 92,218 55,417 545,325 244,831 Shares Issued in Connection with Fund Reorganizations ......... -- -- -- 228,414 Reinvestment of Cash Distributions ............................ 9,625 9,950 8,702 173,461 Cost of Shares Repurchased .................................... (52,097) (77,211) (378,030) (539,484) -------- -------- ---------- ---------- Increase (Decrease) in Net Assets From Trust Share Transactions ............................................... 49,746 (11,844) 175,997 107,222 -------- -------- ---------- ---------- Investor Shares: Proceeds from Shares Issued ................................... 2,760 459 9,448 6,569 Reinvestment of Cash Distributions ............................ 338 366 1,668 38,862 Cost of Shares Repurchased .................................... (1,259) (2,529) (25,945) (45,950) -------- -------- ---------- ---------- Increase (Decrease) in Net Assets From Investor Share Transactions ................................................ 1,839 (1,704) (14,829) (519) -------- -------- ---------- ---------- Flex Shares: Proceeds from Shares Issued ................................... 26,377 21,023 38,048 19,049 Shares Issued in Connection with Fund Reorganizations ......... -- -- -- 5,868 Reinvestment of Cash Distributions ............................ 2,319 2,109 1,003 20,065 Cost of Shares Repurchased .................................... (15,941) (18,898) (25,421) (35,295) -------- -------- ---------- ---------- Increase (Decrease) in Net Assets From Flex Share Transactions ................................................ 12,755 4,234 13,630 9,687 -------- -------- ---------- ---------- Increase (Decrease) in Net Assets From Share Transactions ................................................ 64,340 (9,314) 174,798 116,390 -------- -------- ---------- ---------- Total Increase (Decrease) in Net Assets ..................... 40,530 (12,609) (14,455) (183,529) -------- -------- ---------- ---------- Net Assets: Beginning of Period ............................................. 284,974 297,583 1,492,978 1,676,507 -------- -------- ---------- ---------- End of Period ................................................... $325,504 $284,974 $1,478,523 $1,492,978 ======== ======== ========== ========== (1) See Note 7 in the Notes to Financial Statements for additional information. Amounts designated as "--" are either $0 or have been rounded to $0.
80
------------------------------------------------------------------------------------------------------------------------------------ INTERNATIONAL GROWTH AND INFORMATION AND TECHNOLOGY EQUITY INCOME FUND FUND FUND ---------------------------- ---------------------------- ---------------------------- 06/01/01- 06/01/00- 06/01/01- 06/01/00- 06/01/01- 06/01/00- 05/31/02 05/31/01 05/31/02 05/31/01 05/31/02 05/31/01 -------- -------- -------- -------- -------- -------- $ 4,992 $ 4,188 $ (810) $ (904) $ 785 $ 1,191 (2,065) (705) (34,411) (31,392) (31,939) (11,441) -- -- -- -- 48 (517) -- -- -- -- 151 (600) (81,292) (3,199) (3,329) 5,519 12,345 (17,398) -------- -------- -------- -------- --------- -------- (78,365) 284 (38,550) (26,777) (18,610) (28,765) -------- -------- -------- -------- --------- -------- (4,300) (4,781) -- -- -- (877) (135) (150) -- -- -- -- -- -- -- -- -- -- -- (24,395) -- -- -- (23,931) -- (1,167) -- -- -- (847) -- (1,712) -- -- -- (902) -------- -------- -------- -------- --------- -------- (4,435) (32,205) -- -- -- (26,557) -------- -------- -------- -------- --------- -------- 153,837 243,507 12,552 41,035 122,777 53,266 -- -- -- -- -- -- 1,608 20,958 -- -- -- 21,730 (158,642) (253,423) (37,401) (39,461) (59,774) (114,255) -------- -------- -------- -------- --------- -------- (3,197) 11,042 (24,849) 1,574 63,003 (39,259) -------- -------- -------- -------- --------- -------- 7,129 5,435 -- -- 204,662 35,555 122 1,186 -- -- -- 807 (7,307) (7,839) -- -- (207,235) (37,661) -------- -------- -------- -------- --------- -------- (56) (1,218) -- -- (2,573) (1,299) -------- -------- -------- -------- --------- -------- 40,844 32,257 2,266 14,430 7,548 6,441 -- -- -- -- -- -- -- 1,665 -- -- -- 886 (16,988) (15,848) (5,097) (6,704) (7,940) (8,498) -------- -------- -------- -------- --------- -------- 23,856 18,074 (2,831) 7,726 (392) (1,171) -------- -------- -------- -------- --------- -------- 20,603 27,898 (27,680) 9,300 60,038 (41,729) -------- -------- -------- -------- --------- -------- (62,197) (4,023) (66,230) (17,477) 41,428 (97,051) -------- -------- -------- -------- --------- -------- 986,214 990,237 109,149 126,626 223,402 320,453 -------- -------- -------- -------- --------- -------- $924,017 $986,214 $ 42,919 $109,149 $ 264,830 $223,402 ======== ======== ======== ======== ========= ========
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS 81
STATEMENTS OF CHANGES IN NET ASSETS (000) ------------------------------------------------------------------------------------------------------------------------------------ STI CLASSIC EQUITY FUNDS FOR THE YEARS ENDED MAY 31, INTERNATIONAL LIFE VISION EQUITY AGGRESSIVE INDEX FUND GROWTH FUND ------------------------- ------------------------- 06/01/01- 06/01/00- 06/01/01- 06/01/00- 05/31/02 05/31/01 05/31/02 05/31/01 -------- -------- -------- -------- Operations: Net Investment Income (Loss)* .................................... $ 1,447 $ 1,146 $ 47 $ 212 Capital Gain Received from Investments in Affiliated Investment Companies ............................... -- -- 80 165 Net Realized Gain (Loss) on Investments* ......................... (36,218) (22,445) (1,052) 1,870 Net Realized Loss on Foreign Currency Transactions ............... (321) (347) -- -- Net Change in Unrealized Appreciation (Depreciation) on Foreign Currency and Translation of Other Assets and Liabilities in Foreign Currency ........................... 61 (19) -- -- Net Change in Unrealized Appreciation (Depreciation) on Investments* ................................................ 8,423 (40,574) (863) (1,422) -------- -------- ------- ------- Increase (Decrease) in Net Assets from Operations ................ (26,608) (62,239) (1,788) 825 -------- -------- ------- ------- Distributions to Shareholders: Net Investment Income: Trust Shares .................................................... (767) (1,603) (57) (220) Investor Shares ................................................. (11) -- -- -- Flex Shares -- -- -- -- Capital Gains: Trust Shares .................................................... -- (2,188) -- (2,504) Investor Shares ................................................. -- (28) -- -- Flex Shares ..................................................... -- (45) -- -- -------- -------- ------- ------- Total Distributions ............................................... (778) (3,864) (57) (2,724) -------- -------- ------- ------- Capital Transactions (1): Trust Shares: Proceeds from Shares Issued ..................................... 134,438 92,148 19,227 14,367 Reinvestment of Cash Distributions .............................. 767 2,830 57 2,711 Cost of Shares Repurchased ...................................... (57,264) (134,833) (6,977) (9,655) -------- -------- ------- ------- Increase (Decrease) in Net Assets From Trust Share Transactions ...................................................... 77,941 (39,855) 12,307 7,423 -------- -------- ------- ------- Investor Shares: Proceeds from Shares Issued ..................................... 129,643 19,493 -- -- Reinvestment of Cash Distributions .............................. 11 26 -- -- Cost of Shares Repurchased ...................................... (130,086) (19,943) -- -- -------- -------- ------- ------- Increase (Decrease) in Net Assets From Investor Share Transactions .................................................... (432) (424) -- -- -------- -------- ------- ------- Flex Shares: Proceeds from Shares Issued ..................................... 7,290 6,535 -- -- Reinvestment of Cash Distributions .............................. -- 43 -- -- Cost of Shares Repurchased ...................................... (7,786) (6,421) -- -- -------- -------- ------- ------- Increase (Decrease) in Net Assets From Flex Share Transactions .................................................... (496) 157 -- -- -------- -------- ------- ------- Increase (Decrease) in Net Assets From Share Transactions .................................................. 77,013 (40,122) 12,307 7,423 -------- -------- ------- ------- Total Increase (Decrease) in Net Assets ....................... 49,627 (106,225) 10,462 5,524 -------- -------- ------- ------- Net Assets: Beginning of Period ............................................... 245,044 351,269 23,936 18,412 -------- -------- ------- ------- End of Period ..................................................... $294,671 $245,044 $34,398 $23,936 -------- -------- ------- -------
* Net investment income (loss), net realized gain (loss) on investments, and net change in unrealized appreciation (depreciation) on investments for the Life Vision Funds are primarily attributable to the underlying investments in affiliated investment companies. (1) See Note 7 in the Notes to Financial Statements for additional information Amounts designated as "--" are either $0 or have been rounded to $0. 82
------------------------------------------------------------------------------------------------------------------------------------ LIFE VISION LIFE VISION MID-CAP EQUITY GROWTH AND INCOME FUND MODERATE GROWTH FUND FUND ---------------------------- ---------------------------------- --------------------------------- 06/01/01- 06/01/00- 06/01/01- 06/01/00- 06/01/01- 06/01/00- 05/31/02 05/31/01 05/31/02 05/31/01 05/31/02 05/31/01 -------- -------- -------- -------- -------- -------- $ 639 $ 913 $ 1,488 $ 2,256 $ (534) $ (708) 73 298 150 490 -- -- (2,267) 412 (4,949) 3,951 (32,539) 6,260 -- -- -- -- -- -- -- -- -- -- -- -- 290 421 2,662 (3,417) 10,660 (21,026) ------- ------- ------- -------- -------- --------- (1,265) 2,044 (649) 3,280 (22,413) (15,474) ------- ------- ------- -------- -------- --------- (598) (921) (1,472) (2,323) -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- (1,868) -- (6,675) -- (36,018) -- -- -- -- -- (2,597) -- -- -- -- -- (2,609) ------- ------- ------- -------- -------- --------- (598) (2,789) (1,472) (8,998) -- (41,224) ------- ------- ------- -------- -------- --------- 53,119 24,159 36,185 61,628 254,418 117,778 595 2,775 1,452 8,988 -- 32,369 (12,006) (19,112) (20,353) (61,091) (219,234) (151,284) ------- ------- ------- -------- -------- --------- 41,708 7,822 17,284 9,525 35,184 (1,137) ------- ------- ------- -------- -------- --------- -- -- -- -- 5,382 6,611 -- -- -- -- -- 2,556 -- -- -- -- (5,676) (7,751) ------- ------- ------- -------- -------- --------- -- -- -- -- (294) 1,416 ------- ------- ------- -------- -------- --------- -- -- -- -- 6,756 5,097 -- -- -- -- -- 2,582 -- -- -- -- (4,054) (5,569) ------- ------- ------- -------- -------- --------- -- -- -- -- 2,702 2,110 ------- ------- ------- -------- -------- --------- 41,708 7,822 17,284 9,525 37,592 2,389 ------- ------- ------- -------- -------- --------- 39,845 7,077 15,163 3,807 15,179 (54,309) ------- ------- ------- -------- -------- --------- 37,550 30,473 73,429 69,622 181,337 235,646 ------- ------- ------- -------- -------- --------- $77,395 $37,550 $88,592 $ 73,429 $196,516 $ 181,337 ======= ======= ======= ======== ======== =========
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS 83
STATEMENTS OF CHANGES IN NET ASSETS (000) ------------------------------------------------------------------------------------------------------------------------------------ STI CLASSIC EQUITY FUNDS FOR THE YEARS ENDED MAY 31, MID CAP SMALL CAP VALUE EQUITY GROWTH FUND STOCK FUND -------------- ----------------------------- 11/30/01*- 06/01/01- 06/01/00- 05/31/02 05/31/02 05/31/01 ---------- --------- --------- Operations: Net Investment Income (Loss) ................................................. $ 153 $ (6,319) $ (5,471) Net Realized Gain (Loss) on Securities Sold .................................. 2,242 12,904 27,514 Net Change in Unrealized Appreciation (Depreciation) on Investments ............................................................. 3,288 (43,483) 19,085 -------- -------- -------- Increase (Decrease) in Net Assets from Operations .......................... 5,683 (36,898) 41,128 -------- -------- -------- Distributions to Shareholders: Net Investment Income: Trust Shares ............................................................. (128) -- -- Investor Shares .......................................................... -- -- -- Flex Shares .............................................................. -- -- -- Capital Gains: Trust Shares ............................................................. -- (2,201) (36,059) Investor Shares .......................................................... -- (108) (2,634) Flex Shares .............................................................. -- (106) (1,955) -------- -------- -------- Total Distributions .......................................................... (128) (2,415) (40,648) -------- -------- -------- Capital Transactions (1): Trust Shares: Proceeds from Shares Issued .................................................. 187,081 204,546 147,538 Reinvestment of Cash Distributions ........................................... 22 1,813 31,468 Cost of Shares Repurchased ................................................... (17,706) (86,510) (102,290) -------- -------- -------- Increase (Decrease) in Net Assets From Trust Share Transactions ................................................................. 169,397 119,849 76,716 -------- -------- -------- Investor Shares: Proceeds from Shares Issued .................................................. -- 6,448 6,093 Reinvestment of Cash Distributions ........................................... -- 102 2,440 Cost of Shares Repurchased ................................................... -- (8,754) (19,670) -------- -------- -------- Decrease in Net Assets From Investor Share Transactions ................................................................. -- (2,204) (11,137) -------- -------- -------- Flex Shares: Proceeds from Shares Issued .................................................. 5,565 10,866 8,615 Reinvestment of Cash Distributions ........................................... -- 104 1,935 Cost of Shares Repurchased ................................................... (193) (6,387) (6,449) -------- -------- -------- Increase (Decrease) in Net Assets From Flex Share Transactions ................................................................. 5,372 4,583 4,101 -------- -------- -------- Increase (Decrease) in Net Assets From Share Transactions ................................................................... 174,769 122,228 69,680 -------- -------- -------- Total Increase (Decrease) in Net Assets ...................................... 180,324 82,915 70,160 -------- -------- -------- Net Assets: Beginning of Period .......................................................... -- 564,731 494,571 -------- -------- -------- End of Period ................................................................ $180,324 $647,646 $564,731 -------- -------- --------
*Commencement of Operations. (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. 84
------------------------------------------------------------------------------------------------------------------------------------ TAX SENSITIVE SMALL CAP VALUE GROWTH VALUE INCOME VANTAGE EQUITY FUND STOCK FUND STOCK FUND FUND ----------------------------- ---------------------------- ------------------------- --------- 06/01/01- 06/01/00- 06/01/01- 06/01/00- 06/01/01- 06/01/00- 11/30/01*- 05/31/02 05/31/01 05/31/02 05/31/01 05/31/02 05/31/01 05/31/02 -------- -------- -------- -------- -------- -------- --------- $ 3,146 $ 4,447 $ (2,575) $ (3,912) $ 8,024 $ 14,150 $ (28) 7,370 (981) (34,842) (151,967) 18,010 (34,203) (421) 82,755 75,340 (45,038) (36,773) (60,823) 127,456 (68) -------- -------- --------- ---------- -------- ---------- ------- 93,271 78,806 (82,455) (192,652) (34,789) 107,403 (517) -------- -------- --------- ---------- -------- ---------- ------- (3,500) (3,821) -- -- (7,740) (14,738) -- (15) -- -- -- (629) (1,369) -- -- (48) -- -- (41) (564) -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -------- -------- --------- ---------- -------- ---------- ------- (3,515) (3,869) -- -- (8,410) (16,671) -- -------- -------- --------- ---------- -------- ---------- ------- 226,657 198,095 17,347 111,167 166,044 164,924 9,433 2,013 3,024 -- -- 6,531 13,019 -- (102,960) (83,742) (181,586) (231,337) (155,718) (469,678) (158) -------- -------- --------- ---------- -------- ---------- ------- 125,710 117,377 (164,239) (120,170) 16,857 (291,735) 9,275 -------- -------- --------- ---------- -------- ---------- ------- -- -- -- -- 4,311 2,039 -- -- -- -- -- 607 1,326 -- -- -- -- -- (10,581) (31,203) -- -------- -------- --------- ---------- -------- ---------- ------- -- -- -- -- (5,663) (27,838) -- -------- -------- --------- ---------- -------- ---------- ------- 21,029 3,356 19,925 77,445 8,816 4,891 919 15 47 -- -- 40 552 -- (2,670) (3,320) (54,358) (71,590) (12,069) (30,819) (1) -------- -------- --------- ---------- -------- ---------- ------- 18,374 83 (34,433) 5,855 (3,213) (25,376) 918 -------- -------- --------- ---------- -------- ---------- ------- 144,084 117,460 (198,672) (114,315) 7,981 (344,949) 10,193 -------- -------- --------- ---------- -------- ---------- ------- 233,840 192,397 (281,127) (306,967) (35,218) (254,217) 9,676 -------- -------- --------- ---------- -------- ---------- ------- 413,067 220,670 693,807 1,000,774 856,321 1,110,538 -- -------- -------- --------- ---------- -------- ---------- ------- $646,907 $413,067 $ 412,680 $ 693,807 $821,103 $ 856,321 $ 9,676 -------- -------- --------- ---------- -------- ---------- -------
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS. 85
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 OF PERIOD INCOME (LOSS) ON INVESTMENTS INCOME CAPITAL GAINS OF PERIOD ----------- ------------- ---------------- ------------- -------------- --------- BALANCED FUND Trust Shares 2002 $13.18 $ 0.23 $(0.65) $(0.24) $(0.34) $12.18 2001 13.37 0.30 0.12 (0.31) (0.30) 13.18 2000 13.26 0.32 0.33 (0.30) (0.24) 13.37 1999 13.09 0.28 1.09 (0.28) (0.92) 13.26 1998 11.94 0.31 2.19 (0.32) (1.03) 13.09 Investor Shares 2002 $13.24 $ 0.18 $(0.64) $(0.20) $(0.34) $12.24 2001 13.43 0.27 0.11 (0.27) (0.30) 13.24 2000 13.32 0.29 0.31 (0.25) (0.24) 13.43 1999 13.14 0.24 1.10 (0.24) (0.92) 13.32 1998 11.99 0.28 2.19 (0.29) (1.03) 13.14 Flex Shares 2002 $13.07 $ 0.10 $(0.65) $(0.11) $(0.34) $12.07 2001 13.27 0.16 0.11 (0.17) (0.30) 13.07 2000 13.17 0.17 0.33 (0.16) (0.24) 13.27 1999 13.02 0.16 1.07 (0.16) (0.92) 13.17 1998 11.90 0.20 2.16 (0.21) (1.03) 13.02 CAPITAL APPRECIATION FUND Trust Shares 2002 $13.89 $ -- $(1.53) $ -- $(0.12) $12.24 2001 17.12 (0.05) (0.38) -- (2.80) 13.89 2000 16.62 0.02 1.40 -- (0.92) 17.12 1999 16.48 0.05 2.70 (0.06) (2.55) 16.62 1998 15.09 0.09 3.96 (0.09) (2.57) 16.48 Investor Shares 2002 $13.59 $(0.10) $(1.48) $ -- $(0.12) $11.89 2001 16.91 (0.14) (0.38) -- (2.80) 13.59 2000 16.53 (0.11) 1.41 -- (0.92) 16.91 1999 16.43 (0.05) 2.70 -- (2.55) 16.53 1998 15.06 (0.01) 3.95 -- (2.57) 16.43 Flex Shares 2002 $13.09 $(0.06) $(1.51) $ -- $ (0.12) $11.40 2001 16.45 (0.16) (0.40) -- (2.80) 13.09 2000 16.18 (0.24) 1.43 -- (0.92) 16.45 1999 16.22 (0.09) 2.60 -- (2.55) 16.18 1998 14.96 (0.04) 3.87 -- (2.57) 16.22 GROWTH AND INCOME FUND (A) Trust Shares 2002 $15.05 $ 0.09 $(1.26) $(0.08) $ -- $13.80 2001 15.53 0.07 (0.04) (0.08) (0.43) 15.05 2000 16.09 0.11 0.55 (0.10) (1.12) 15.53 1999(1) 15.10 0.04 1.97 (0.02) (1.00) 16.09 For the years ended November 30: 1998 16.55 0.09 1.64 (0.09) (3.09) 15.10 1997 13.39 0.14 3.24 (0.15) (0.07) 16.55 Investor Shares 2002 $15.17 $ 0.06 $(1.27) $(0.05) $ -- $13.91 2001 15.65 0.04 (0.04) (0.05) (0.43) 15.17 2000 16.21 0.09 0.55 (0.08) (1.12) 15.65 1999(1) 15.21 0.04 1.99 (0.03) (1.00) 16.21 For the years ended November 30: 1998 16.64 0.10 1.66 (0.10) (3.09) 15.21 1997 13.47 0.13 3.25 (0.14) (0.07) 16.64 Flex Shares 2002 $14.96 $(0.02) $(1.28) $ -- $ -- $13.66 2001 15.49 (0.05) (0.05) -- (0.43) 14.96 2000 16.10 -- 0.51 -- (1.12) 15.49 1999(1) 15.14 (0.01) 1.97 -- (1.00) 16.10 For the years ended November 30: 1998 16.59 (0.01) 1.64 -- (3.08) 15.14 1997 13.44 0.04 3.23 (0.05) (0.07) 16.59
+ 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. Returns shown do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares. 86
------------------------------------------------------------------------------------------------------------------------------------ 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 TOTAL END OF EXPENSES TO INCOME (LOSS) TO (EXCLUDING WAIVERS (EXCLUDING WAIVERS TURNOVER RETURN+ PERIOD (000) AVERAGE NET ASSETS AVERAGE NET ASSETS AND REIMBURSEMENTS) AND REIMBURSEMENTS) RATE -------- ------------ ------------------ ------------------ -------------------- ------------------- ------- (3.29)% $ 241,604 1.02% 1.78% 1.05% 1.75% 95% 3.24 209,316 1.01 2.24 1.05 2.20 99 5.02 223,634 0.97 2.39 1.07 2.29 182 10.98 251,752 0.97 2.19 1.06 2.10 179 22.15 188,465 0.96 2.51 1.08 2.39 154 (3.57)% $ 9,020 1.33% 1.46% 1.55% 1.24% 95% 2.91 7,834 1.32 1.93 1.54 1.71 99 4.66 9,627 1.27 2.07 1.51 1.83 182 10.70 14,962 1.27 1.89 1.43 1.73 179 21.72 8,313 1.26 2.21 1.59 1.88 154 (4.33)% $ 74,880 2.09% 0.71% 2.16% 0.64% 95% 2.11 67,824 2.07 1.18 2.15 1.10 99 3.88 64,322 2.03 1.33 2.18 1.18 182 9.84 73,526 2.03 1.13 2.15 1.01 179 20.85 27,625 2.02 1.41 2.23 1.20 154 (11.06)% $1,204,445 1.22% (0.54)% 1.24% (0.56)% 75% (3.74) 1,177,933 1.21 (0.29) 1.24 (0.32) 75 8.98 1,296,927 1.17 0.10 1.26 0.01 129 17.83 1,966,842 1.17 0.29 1.26 0.20 147 29.51 1,532,587 1.16 0.61 1.27 0.50 194 (11.68)% $ 163,155 1.88% (1.20)% 1.99% (1.31)% 75% (4.38) 202,548 1.86 (0.94) 1.98 (1.06) 75 8.29 251,421 1.82 (0.55) 1.98 (0.71) 129 17.20 311,120 1.82 (0.30) 1.96 (0.44) 147 28.71 271,044 1.81 (0.03) 2.01 (0.23) 194 (12.05)% $ 110,923 2.35% (1.67)% 2.39% (1.71)% 75% (4.79) 112,497 2.33 (1.41) 2.39 (1.47) 75 7.77 128,159 2.29 (1.03) 2.39 (1.13) 129 16.50 162,100 2.29 (0.86) 2.38 (0.95) 147 28.12 106,670 2.26 (0.46) 2.37 (0.57) 194 (7.80)% $ 792,557 0.99% 0.63% 0.99% 0.63% 68% 0.11 867,664 0.99 0.49 0.99 0.49 73 4.11 885,109 1.01 0.76 1.01 0.76 53 14.24 634,279 1.14 0.49 1.43 0.20 31 13.64 577,042 1.03 0.63 1.21 0.45 71 25.41 590,824 1.02 0.92 1.17 0.77 100 (7.97)% $ 36,789 1.18% 0.44% 1.36% 0.26% 68% (0.07) 40,174 1.18 0.30 1.35 0.13 73 3.92 42,666 1.18 0.58 1.31 0.45 53 14.31 36,958 1.08 0.54 1.17 0.45 31 13.69 34,434 1.03 0.63 1.18 0.48 71 25.42 28,112 1.03 0.89 1.18 0.74 100 (8.69)% $ 94,671 1.93% (0.29)% 2.16% (0.52)% 68% (0.77) 78,376 1.93 (0.45) 2.14 (0.66) 73 3.11 62,462 1.93 (0.14) 2.18 (0.39) 53 13.85 35,163 1.83 (0.21) 1.97 (0.35) 31 12.78 25,656 1.78 (0.13) 2.03 (0.38) 71 24.63 13,269 1.73 0.15 2.09 (0.20) 100
(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 87
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 OF PERIOD INCOME (LOSS) ON INVESTMENTS INCOME CAPITAL GAINS OF PERIOD ----------- ------------- ---------------- ------------ ------------- ----------- INFORMATION & TECHNOLOGY FUND Trust Shares 2002 $13.34 $ 0.01 $(5.29) $ -- $ -- $ 8.06 2001 15.87 (0.08) (2.45) -- -- 13.34 2000(1) 10.00 (0.04) 5.91 -- -- 15.87 Flex Shares 2002 $13.15 $(0.14) $(5.15) $ -- $ -- $ 7.86 2001 15.81 (0.22) (2.44) -- -- 13.15 2000(2) 18.20 (0.07) (2.32) -- -- 15.81 INTERNATIONAL EQUITY FUND Trust Shares 2002 $10.19 $ 0.19 $(1.07) $ -- $ -- $ 9.31 2001 12.56 -- (1.22) (0.04) (1.11) 10.19 2000 12.97 (0.10) 1.42 (0.07) (1.66) 12.56 1999 15.00 -- (1.14) (0.05) (0.84) 12.97 1998 13.63 0.04 2.69 (0.04) (1.32) 15.00 Investor Shares 2002 $10.11 $ 0.14 $(1.04) $ -- $ -- $ 9.21 2001 12.47 (0.02) (1.23) -- (1.11) 10.11 2000 12.89 (0.11) 1.37 (0.02) (1.66) 12.47 1999 14.92 (0.09) (1.10) -- (0.84) 12.89 1998 13.58 0.02 2.64 -- (1.32) 14.92 Flex Shares 2002 $ 9.68 $ 0.04 $(0.97) $ -- $ -- $ 8.75 2001 12.06 (0.16) (1.11) -- (1.11) 9.68 2000 12.58 (0.32) 1.46 -- (1.66) 12.06 1999 14.68 (0.29) (0.97) -- (0.84) 12.58 1998 13.47 0.07 2.46 -- (1.32) 14.68 INTERNATIONAL EQUITY INDEX FUND Trust Share 2002 $11.18 $ 0.04 $(1.43) $(0.03) $ -- $ 9.76 2001 13.97 0.06 (2.69) (0.07) (0.09) 11.18 2000 11.82 0.16 2.13 (0.03) (0.11) 13.97 1999 13.31 0.09 0.85 (0.24) (2.19) 11.82 1998 11.34 0.11 2.65 (0.11) (0.68) 13.31 Investor Shares 2002 $11.05 $(0.02) $(1.38) $(0.01) $ -- $ 9.64 2001 13.80 (0.01) (2.65) -- (0.09) 11.05 2000 11.70 (0.11) 2.32 -- (0.11) 13.80 1999 13.20 (0.11) 0.98 (0.18) (2.19) 11.70 1998 11.26 0.16 2.53 (0.07) (0.68) 13.20 Flex Shares 2002 $10.93 $(0.12) $(1.33) $ -- $ -- $ 9.48 2001 13.74 (0.06) (2.66) -- (0.09) 10.93 2000 11.73 0.08 2.04 -- (0.11) 13.74 1999 13.17 (0.15) 0.94 (0.04) (2.19) 11.73 1998 11.24 0.17 2.44 -- (0.68) 13.17
+ Returns are for the period indicated and have not been annualized. Total return figures do not include applicable sales loads. (1) Trust shares were offered beginning on September 30, 1999. All ratios for the period have been annualized. (2) Flex shares were offered beginning on January 24, 2000. All ratios for the period have been annualized. Amounts designated as "--" are either $0 or have been rounded to $0. Returns shown do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares. 88
------------------------------------------------------------------------------------------------------------------------------------ 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 TOTAL END OF EXPENSES TO INCOME (LOSS) TO (EXCLUDING WAIVERS (EXCLUDING WAIVERS TURNOVER RETURN+ PERIOD (000) AVERAGE NET ASSETS AVERAGE NET ASSETS AND REIMBURSEMENTS) AND REIMBURSEMENTS) RATE -------- ---------------- ------------------ ------------------ ------------------- -------------------- -------- (39.58)% $ 32,068 1.19% (0.92)% 1.19% (0.92)% 1,102% (15.94) 87,045 1.20 (0.45) 1.21 (0.46) 750 58.70 106,425 1.20 (0.54) 1.34 (0.68) 250 (40.23)% $ 10,851 2.25% (1.99)% 2.57% (2.31)% 1,102% (16.82) 22,104 2.25 (1.50) 2.45 (1.70) 750 (13.13) 20,201 2.25 (1.65) 2.40 (1.80) 250 (8.64)% $ 252,991 1.48% 0.48% 1.48% 0.48% 102% (10.79) 208,120 1.45 0.50 1.45 0.50 68 10.58 299,100 1.48 0.59 1.48 0.59 179 (7.43) 573,255 1.47 0.68 1.52 0.63 161 21.87 628,870 1.47 0.61 1.48 0.60 108 (8.90)% $ 5,272 1.83% (0.21)% 1.83% (0.21)% 102% (11.13) 7,517 1.79 0.18 1.97 -- 68 10.15 10,462 1.83 0.33 1.95 0.21 179 (7.82) 14,145 1.83 0.30 1.93 0.20 161 21.39 17,383 1.82 0.24 1.91 0.15 108 (9.61)% $ 6,567 2.53% (0.73)% 2.53% (0.73)% 102% (11.71) 7,765 2.48 (0.51) 2.57 (0.60) 68 9.38 10,891 2.53 (0.38) 2.74 (0.59) 179 (8.48) 17,103 2.53 (0.40) 2.82 (0.69) 161 20.54 21,164 2.52 (0.46) 2.58 (0.52) 108 (12.43)% $ 287,944 1.04% 0.63% 1.12% 0.55% 35% (18.90) 236,862 1.06 0.40 1.09 0.37 13 19.36 340,853 1.07 0.83 1.18 0.72 9 7.87 74,616 1.07 0.69 1.17 0.59 32 25.82 56,200 1.06 0.88 1.18 0.76 1 (12.65)% $ 3,222 1.49% (0.12)% 1.90% (0.53)% 35% (19.31) 3,451 1.46 0.05 1.83 (0.32) 13 18.86 4,563 1.47 0.07 1.79 (0.25) 9 7.33 4,909 1.47 0.25 1.71 0.01 32 25.25 7,141 1.46 0.50 1.84 0.12 1 (13.27)% $ 3,505 2.14% (0.68)% 2.62% (1.16)% 35% (19.84) 4,731 2.10 (0.61) 2.15 (0.66) 13 18.04 5,853 2.12 (0.36) 2.61 (0.85) 9 6.68 1,465 2.12 (0.30) 2.92 (1.10) 32 24.50 1,469 2.11 (0.03) 3.52 (1.44) 1
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS 89 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 OF PERIOD INCOME (LOSS) ON INVESTMENTS INCOME CAPITAL GAINS OF PERIOD ----------- ------------- ---------------- -------------- ------------- --------- LIFE VISION AGGRESSIVE GROWTH FUND (A) (B) Trust Shares 2002 $10.31 $ 0.02 $(0.74) $(0.02) $ -- $ 9.57 2001 11.61 0.11 0.23 (0.12) (1.52) 10.31 2000 11.31 0.05 0.74 (0.05) (0.44) 11.61 1999(1) 11.32 0.02 1.13 (0.01) (1.15) 11.31 For the years ended November 30: 1998 10.65 0.03 0.67 (0.03) -- 11.32 1997(2) 10.00 0.03 0.65 (0.03) -- 10.65 LIFE VISION GROWTH AND INCOME FUND (A) (B) Trust Shares 2002 $10.42 $ 0.12 $(0.43) $(0.13) $ -- $ 9.98 2001 10.50 0.24 0.40 (0.25) (0.47) 10.42 2000 10.33 0.07 0.52 (0.17) (0.25) 10.50 1999(1) 11.06 0.08 0.69 (0.06) (1.44) 10.33 For the years ended November 30: 1998 10.51 0.18 0.56 (0.18) (0.01) 11.06 1997(2) 10.00 0.09 0.51 (0.09) -- 10.51 LIFE VISION MODERATE GROWTH FUND (A) (B) Trust Shares 2002 $ 9.73 $ 0.17 $(0.32) $(0.18) $ -- $ 9.40 2001 10.61 0.32 0.20 (0.34) (1.06) 9.73 2000 10.80 0.33 0.13 (0.21) (0.44) 10.61 1999(1) 11.01 0.11 0.56 (0.09) (0.79) 10.80 For the years ended November 30: 1998 10.46 0.24 0.58 (0.24) (0.03) 11.01 1997(2) 10.00 0.12 0.45 (0.11) -- 10.46 MID CAP EQUITY FUND Trust Shares 2002 $10.95 $(0.01) $(1.15) $ -- $ -- $ 9.79 2001 14.10 (0.03) (0.61) -- (2.51) 10.95 2000 12.68 (0.04) 2.32 -- (0.86) 14.10 1999 13.79 0.01 0.07 -- (1.19) 12.68 1998 13.21 -- 2.54 -- (1.96) 13.79 Investor Shares 2002 $10.64 $(0.03) $(1.14) $ -- $ -- $ 9.47 2001 13.82 (0.05) (0.62) -- (2.51) 10.64 2000 12.50 (0.19) 2.37 -- (0.86) 13.82 1999 13.67 (0.06) 0.08 -- (1.19) 12.50 1998 13.17 (0.03) 2.49 -- (1.96) 13.67 Flex Shares 2002 $10.14 $(0.02) $(1.15) $ -- $ -- $ 8.97 2001 13.35 (0.07) (0.63) -- (2.51) 10.14 2000 12.17 (0.22) 2.26 -- (0.86) 13.35 1999 13.42 (0.14) 0.08 -- (1.19) 12.17 1998 13.04 (0.04) 2.38 -- (1.96) 13.42 MID CAP VALUE EQUITY FUND Trust Shares 2002(3) $10.00 $ 0.02 $ 0.94 $(0.01) $ -- $10.95 Flex Shares 2002(3) $10.00 $(0.01) $ 0.93 $ -- $ -- $10.92 SMALL CAP GROWTH STOCK FUND Trust Shares 2002 $18.37 $ -- $(1.02) $ -- $(0.07) $17.28 2001 18.30 (0.18) 1.71 -- (1.46) 18.37 2000 14.55 (0.08) 4.02 -- (0.19) 18.30 1999(4) 10.00 (0.05) 4.62 -- (0.02) 14.55 Investor Shares 2002 $18.26 $(0.17) $(0.90) $ -- $(0.07) $17.12 2001 18.27 (0.59) 2.04 -- (1.46) 18.26 2000(5) 16.46 (0.07) 1.88 -- -- 18.27 Flex Shares 2002 $17.85 $(0.02) $(1.14) $ -- $(0.07) $16.62 2001 18.00 (0.25) 1.56 -- (1.46) 17.85 2000 14.46 (0.04) 3.77 -- (0.19) 18.00 1999(4) 10.00 (0.19) 4.67 -- (0.02) 14.46
+ 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) Trust shares were offered beginning on June 30, 1997. All ratios for the period have been annualized. (3) Commenced operations on November 30, 2001. All ratios for the period have been annualized. (4) Shares were offered beginning on October 8, 1998. All ratios for the period have been annualized. (5) Investor shares were offered beginning on December 12, 1999. All ratios for the period have been annualized. Returns shown do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares. 90 --------------------------------------------------------------------------------
RATIO OF RATIO OF NET INVESTMENT RATIO OF XPENSES TO INCOME (LOSS) TO NET ASSETS RATIO OF NET INVESTMENT AVERAGE NET ASSETS AVERAGE NET ASSETS PORTFOLIO TOTAL END OF EXPENSES TO INCOME (LOSS) TO (EXCLUDING WAIVERS (EXCLUDING WAIVERS TURNOVER RETURN+ PERIOD (000) AVERAGE NET ASSETS AVERAGE NET ASSETS AND REIMBURSEMENTS) AND REIMBURSEMENTS) RATE ------- ------------ ------------------ ------------------ ------------------- ------------------ --------- (6.96)% $ 34,398 0.25% 0.17% 0.41% 0.01% 101% 3.07 23,936 0.25 1.05 0.43 0.87 202 7.25 18,412 0.25 0.48 0.44 0.29 183 10.99 18,699 0.27 0.28 0.63 (0.08) 33 6.53 16,230 0.25 0.23 0.66 (0.18) 75 6.82 13,712 0.25 0.72 0.73 0.24 34 (2.97)% $ 77,395 0.25% 1.25% 0.39% 1.11% 166% 6.31 37,550 0.25 2.41 0.39 2.27 286 5.81 30,473 0.25 1.77 0.42 1.60 189 7.75 21,950 0.27 1.38 0.60 1.05 40 7.12 19,042 0.25 1.68 0.59 1.34 57 5.97 22,521 0.25 2.11 0.59 1.77 25 (1.52)% $ 88,592 0.25% 1.81% 0.36% 1.70% 202% 5.28 73,429 0.25 3.04 0.37 2.92 247 4.46 69,622 0.25 2.19 0.37 2.07 151 6.35 88,188 0.27 1.90 0.42 1.75 48 7.90 93,211 0.25 2.21 0.42 2.04 52 5.70 89,442 0.25 2.66 0.42 2.49 43 (10.59)% $171,813 1.22% (0.18)% 1.24% (0.20)% 87% (6.92) 156,111 1.21 (0.24) 1.25 (0.28) 100 19.10 206,545 1.17 -- 1.25 (0.08) 131 1.61 254,055 1.17 (0.47) 1.28 (0.58) 76 21.14 337,825 1.16 (0.29) 1.27 (0.40) 129 (11.00)% $ 10,766 1.68% (0.63)% 1.89% (0.84)% 87% (7.34) 12,316 1.66 (0.69) 1.86 (0.89) 100 18.55 14,513 1.62 (0.43) 1.81 (0.62) 131 1.17 19,230 1.62 (0.90) 1.76 (1.04) 76 20.56 24,930 1.61 (0.75) 1.84 (0.98) 129 (11.54)% $ 13,937 2.28% (1.23)% 2.50% (1.45)% 87% (7.88) 12,910 2.26 (1.29) 2.46 (1.49) 100 17.87 14,588 2.22 (1.05) 2.44 (1.27) 131 0.56 15,804 2.22 (1.52) 2.48 (1.78) 76 19.80 19,042 2.21 (1.37) 2.47 (1.63) 129 9.65% $174,859 1.27% 0.29% 1.37% 0.19% 30% 9.24% $ 5,465 1.89% (0.31)% 2.72% (1.14)% 30% (5.55)% $593,211 1.25% (1.01)% 1.25% (1.01)% 100% 8.33 508,857 1.24 (0.95) 1.25 (0.96) 112 27.24 431,478 1.20 (0.86) 1.23 (0.89) 110 45.70 152,290 1.20 (0.48) 1.49 (0.77) 75 (5.86)% $ 24,978 1.61% (1.37)% 1.88% (1.64)% 100% 7.89 28,933 1.60 (1.33) 1.87 (1.60) 112 11.00 39,865 1.55 (1.26) 1.79 (1.50) 110 (6.50)% $ 29,457 2.31% (2.07)% 2.41% (2.17)% 100% 7.19 26,941 2.29 (2.01) 2.39 (2.11) 112 25.95 23,228 2.25 (1.92) 2.42 (2.09) 110 44.78 6,158 2.25 (1.50) 3.19 (2.44) 75
(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. (B) The Life Vision Funds and its shareholders indirectly bear a pro rata share of the expenses of the underlying STIClassic Funds. Amounts designated as "--" are either $0 or have been rounded to $0. THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS 91 FINANCIAL HIGHLIGHTS -------------------------------------------------------------------------------- STI CLASSIC EQUITY FUNDS FOR THE PERIODS ENDED MAY 31, (UNLESS OTHERWISE INDICATED) FOR A SHARE OUTSTANDING THROUGHOUT THE PERIODS
RATIO OF NET ASSET NET REALIZED AND DISTRIBUTIONS VALUE NET UNREALIZED GAINS FROM NET DISTRIBUTIONS NET ASSET BEGINNING INVESTMENT (LOSSES) INVESTMENT FROM REALIZED VALUE END OF PERIOD INCOME (LOSS) ON INVESTMENTS INCOME CAPITAL GAINS OF PERIOD ---------- ------------- ----------------- -------------- ------------- --------- SMALL CAP VALUE EQUITY FUND Trust Shares 2002 $12.21 $ 0.08 $ 2.35 $(0.10) $ -- $14.54 2001 9.13 0.17 3.07 (0.16) -- 12.21 2000 9.70 0.13 (0.59) (0.11) -- 9.13 1999 12.88 0.13 (2.57) (0.13) (0.61) 9.70 1998 11.07 0.14 2.41 (0.12) (0.62) 12.88 Flex Shares 2002 $12.15 $ -- $ 2.29 $(0.01) $ -- $14.43 2001 9.10 0.07 3.04 (0.06) -- 12.15 2000 9.65 -- (0.54) (0.01) -- 9.10 1999 12.80 0.01 (2.53) (0.02) (0.61) 9.65 1998(1) 11.28 0.03 2.17 (0.06) (0.62) 12.80 TAX SENSITIVE GROWTH STOCK FUND Trust Shares 2002 $26.74 $(0.02) $(3.47) $ -- $ -- $23.25 2001 33.10 (0.03) (6.33) -- -- 26.74 2000 29.96 0.02 3.12 -- -- 33.10 1999(2) 25.61 0.02 4.34 (0.01) -- 29.96 Flex Shares 2002 $26.10 $(0.41) $(3.24) $ -- $ -- $22.45 2001 32.65 (0.36) (6.19) -- -- 26.10 2000 29.85 (0.16) 2.96 -- -- 32.65 1999(3) 25.52 (0.04) 4.37 -- -- 29.85 VALUE INCOME STOCK FUND Trust Shares 2002 $11.61 $ 0.12 $(0.56) $(0.12) $ -- $11.05 2001 10.38 0.19 1.24 (0.20) -- 11.61 2000 12.85 0.23 (1.49) (0.22) (0.99) 10.38 1999 13.90 0.24 1.02 (0.24) (2.07) 12.85 1998 13.71 0.26 2.62 (0.27) (2.42) 13.90 Investor Shares 2002 $11.58 $ 0.08 $(0.56) $(0.09) $ -- $11.01 2001 10.35 0.14 1.25 (0.16) -- 11.58 2000 12.81 0.19 (1.48) (0.18) (0.99) 10.35 1999 13.87 0.19 1.02 (0.20) (2.07) 12.81 1998 13.68 0.20 2.62 (0.21) (2.42) 13.87 Flex Shares 2002 $11.46 $ -- $(0.55) $(0.01) $ -- $10.90 2001 10.24 0.04 1.26 (0.08) -- 11.46 2000 12.68 0.08 (1.44) (0.09) (0.99) 10.24 1999 13.75 0.10 1.01 (0.11) (2.07) 12.68 1998 13.61 0.12 2.57 (0.13) (2.42) 13.75 VANTAGE FUND Trust Shares 2002(4) $10.00 $(0.03) $(0.32) $ -- $ -- $ 9.65 Flex Shares 2002(5) $10.49 $ 0.03 $(0.83) $(0.05) $ -- $ 9.64
+ Returns are for the period indicated and have not been annualized. Total return figures do not include applicable sales loads. (1) Flex shares were offered beginning on June 5, 1997. All ratios for the period have been annualized. (2) Trust shares were offered beginning on December 11, 1998. All ratios for the period have been annualized. (3) Flex shares were offered beginning on December 15, 1998. All ratios for the period have been annualized. (4) Trust shares were offered beginning on November 30, 2001. All ratios for the period have been annualized. (5) Flex shares were offered beginning on March 11, 2002. All ratios for the period have been annualized. Returns shown do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares. Amounts designated as "--" are either $0 or have been rounded to $0. 92 --------------------------------------------------------------------------------
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 TOTAL END OF EXPENSES TO INCOME (LOSS) TO (EXCLUDING WAIVERS (EXCLUDING WAIVERS TURNOVER RETURN+ PERIOD (000) AVERAGE NET ASSETS AVERAGE NET ASSETS AND REIMBURSEMENTS) AND REIMBURSEMENTS) RATE ------- ----------- ------------------ ------------------ ------------------- ------------------ --------- 20.06% $ 614,199 1.25% 0.67% 1.25% 0.67% 29% 35.90 401,900 1.25 1.72 1.25 1.72 86 (4.72) 212,074 1.22 1.31 1.25 1.28 65 (18.72) 301,984 1.22 1.27 1.27 1.22 63 23.59 390,841 1.21 1.07 1.31 0.97 55 18.92% $ 32,708 2.31% (0.38)% 2.52% (0.59)% 29% 34.30 11,167 2.30 0.63 2.66 0.27 86 (5.65) 8,596 2.27 0.21 2.56 (0.08) 65 (19.52) 19,465 2.27 0.21 2.55 (0.07) 63 22.29 40,613 2.06 0.01 2.35 (0.28) 55 (13.05)% $ 244,707 1.24% (0.10)% 1.24% (0.10)% 69% (19.21) 460,311 1.24 (0.10) 1.25 (0.11) 103 10.48 710,179 1.20 0.13 1.26 0.07 30 17.04 223,543 1.20 0.21 1.34 0.07 18 (13.98)% $ 167,973 2.31% (1.16)% 2.36% (1.21)% 69% (20.06) 233,496 2.30 (1.15) 2.34 (1.19) 103 9.38 290,595 2.25 (0.91) 2.35 (1.01) 30 16.97 75,875 2.25 (0.80) 2.48 (1.03) 18 (3.68)% $ 686,014 0.90% 1.13% 0.90% 1.13% 60% 14.09 704,842 0.90 1.70 0.90 1.70 77 (10.52) 921,797 0.89 2.02 0.89 2.02 62 11.13 1,589,951 0.92 1.91 0.92 1.91 69 23.10 1,725,418 0.92 1.85 0.92 1.85 99 (4.14)% $ 75,697 1.28% 0.74% 1.31% 0.71% 60% 13.63 85,584 1.28 1.31 1.31 1.28 77 (10.83) 104,178 1.28 1.64 1.28 1.64 62 10.71 194,312 1.28 1.55 1.28 1.55 69 22.71 210,591 1.27 1.47 1.27 1.47 99 (4.82)% $ 59,392 2.02% --% 2.05% (0.03)% 60% 12.85 65,895 2.01 0.59 2.05 0.55 77 (11.50) 84,563 2.02 0.91 2.03 0.90 62 9.91 167,000 2.02 0.81 2.03 0.80 69 21.76 180,530 2.01 0.78 2.01 0.78 99 (3.50)% $ 8,816 2.03% (0.78)% 2.15% (0.90)% 1,063% (3.60)% $ 860 2.73% (1.43)% 2.83% (1.53)% 1,063%
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS 93 NOTES TO FINANCIAL STATEMENTS ------------------------------------------------------------------------------- STI CLASSIC EQUITY FUNDS MAY 31, 2002 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 forty funds as of May 31, 2002: the Balanced Fund, the Capital Appreciation Fund, the Growth and Income Fund, the Information and Technology Fund (formerly 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" 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 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 (formerly the Tax-Free Money Market Fund) (collectively the "Retail Money Market Funds"), the Classic Institutional Cash Management Money Market Fund, the Classic Institutional U.S. Government Securities Money Market Fund and the Classic Institutional U.S. Treasury Securities Money Market Fund, (collectively the "Institutional Money Market Funds"), the Classic Institutional Short-Term Bond Fund, the Classic Institutional Super Short Income Plus Fund, and the Classic Institutional U.S. Government "Institutional Fixed Income 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. 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, 2002, are valued at their fair value as determined in good faith by, or in accordance with procedures adopted by, the Board of Trustees. The assets of the Life Vision Aggressive Growth Fund, Life Vision Growth and Income Fund and the Life Vision Moderate Growth Fund consist primarily of the investments in the underlying affiliated investment companies, which are valued at their respective daily net asset values. 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 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 94 -------------------------------------------------------------------------------- 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." SHORT SALES -- As consistent with the Funds' investment objectives, the Funds may engage in short sales that are either "uncovered" or "against the box." A short sale is "against the box" if at all times during which the short position is open, the Funds own at least an equal amount of the securities or securities convertible into, or exchangeable without further consideration for, securities of the same issue as the securities that are sold short. Uncovered short sales are transactions under which the Funds sell a security they do not own. To complete such a transaction, the Funds must borrow the security to make delivery to the buyer. The Funds then are obligated to replace the security borrowed by purchasing the security at the market price at the time of the replacement. The price at such time may be more or less than the price at which the security was sold by the Funds. Until the security is replaced, the Funds are required to pay the lender amounts equal to any dividends or interest that accrue during the period of the loan. To borrow the security, the Funds also may be required to pay a premium, which would increase the cost of the security sold. The proceeds of the short sale will be retained by the broker, to the extent necessary to meet margin requirements, until the short position is closed out. A gain, limited to the price at which the Funds sold the security short, or a loss, unlimited in size, will be recognized upon the determination of a short sale. Until the Funds close their short position or replaces the borrowed security, the Funds will: (a) maintain a segregated account containing cash or liquid securities at such a level that (i) the amount deposited in the account plus the amount deposited with the broker as collateral will equal the current value of the security sold short; and (ii) the amount deposited in the segregated account plus the amount deposited with the broker as collateral will not be less than the market value of the security at the time the security was sold short, or (b) otherwise cover the Funds' short positions. 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 to shareholders, which are determined in accordance with income tax regulations are recorded on the ex-dividend date. Distributions from net investment income, if any, 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 95 NOTES TO FINANCIAL STATEMENTS (continued) -------------------------------------------------------------------------------- STI CLASSIC EQUITY FUNDS MAY 31, 2002 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. CHANGE IN ACCOUNTING PRINCIPLE -- Effective June 1, 2001, the Funds also began to classify gains and losses on mortgage- and asset-backed securities previously included in realized gains and losses, as a component of interest income as required by the Guide. The effect of the accounting changes had no impact on total net assets of the Funds or the Funds' net asset values. The effect of this change for the period ended May 31, 2002, was to decrease net investment income and increase realized gains and losses by $197,575 for the Balanced Fund. 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 repur- chase agreements for the Trust. For the period ended May 31, 2002, the following Funds paid the distributor through a reduction in the yield earned by the Funds on those repurchase agreements: Balanced Fund .............................. $15,231 Capital Appreciation Fund .................. 14,872 Information and Technology Fund ............ 1,483 Mid-Cap EquityFund ......................... 8,122 Mid Cap Value Fund ......................... 3,495 Small Cap Growth Stock Fund ................ 3,197 Small Cap Value Equity Fund ................ 56,046 Tax Sensitive Growth Stock Fund ............ 3,097 Value Income Stock Fund .................... 30,960 Vantage Fund ............................... 520 In addition to the investment advisory and management fees, custodian fees, service fees, administrator and transfer agent fees, each Fund is responsible for paying most other operating expenses including organization costs, fees and expenses of outside directors, registration fees, printing of shareholder reports, legal, auditing, insurance and other miscellaneous expenses. In addition to the Fund's direct expenses as described above, Fund shareholders of the Life Vision Funds also bear a proportionate share of the underlying Funds' expenses. 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 SunTrust Securities Inc., a wholly-owned subsidiary of SunTrust Banks, Inc., ("STS") are parties to an agreement under which STS provides shareholder support and other account-related services. Shareholder service fees (including out of pocket expenses) paid to STS for the year or period ended May 31, 2002 were: Balanced Fund .............................. $ 7,470 Capital Appreciation Fund .................. 35,791 Growth and Income Fund ..................... 22,938 Information and Technology Fund ............ 1,743 International Equity Fund .................. 4,747 International Equity Index Fund ............ 6,013 Life Vision Aggressive Growth Fund ......... 680 Life Vision Growth and Income Fund ......... 1,273 Life Vision Moderate Growth Fund ........... 2,041 Mid-Cap EquityFund ......................... 4,849 Mid Cap Value Equity Fund .................. 1,355 Small Cap Growth Stock Fund ................ 14,687 Small Cap Value Equity Fund ................ 12,341 Tax Sensitive Growth Stock Fund ............ 13,175 Value Income Stock Fund .................... 19,807 Vantage Fund ............................... 86 96 -------------------------------------------------------------------------------- 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. 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% Growth and Income Fund ............. 0.90% 0.25% 1.00% Information and Technology Fund .... 1.10% -- 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% Mid Cap Value Equity Fund .......... 1.25% -- 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% Vantage Fund ....................... 1.60% -- 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 period ended May 31, 2002, were as follows: PURCHASES SALES (000) (000) ---------- ----------- Balanced Fund ...................... $ 209,998 $ 174,243 Capital Appreciation Fund .......... 1,206,835 1,069,982 Growth and Income Fund ............. 643,132 619,093 Information and Technology Fund .... 724,248 739,151 International Equity Fund .......... 242,728 188,852 International Equity Index Fund .... 161,357 83,627 Life Vision Aggressive Growth Fund . 39,842 27,466 Life Vision Growth and Income Fund . 125,752 83,987 Life Vision Moderate Growth Fund ... 181,143 163,603 Mid-Cap Equity Fund ................ 191,939 156,792 Mid Cap Value Equity Fund .......... 194,505 34,353 Small Cap Growth Stock Fund ........ 707,530 589,431 Small Cap Value Equity Fund ........ 282,550 132,588 Tax Sensitive Growth Stock Fund .... 360,066 541,786 Value Income Stock Fund ............ 447,404 454,964 Vantage Fund ....................... 28,619 23,761 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 period ended May 31, 2002, were $92,195 and $79,539, respectively. 7. Federal Tax Information: 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, they are charged or credited to paid-in-capital or accumulated net realized gain, as appropriate, in the period that the differences arise. Accordingly, the following permanent differences, primarily attributable to net operating losses, and the classification of short-term capital gains and ordinary income for tax purposes, return of capital distribution and paydowns have been reclassified to/from the following accounts. UNDISTRIBUTED NET ACCUMULATED INVESTMENT REALIZED PAID-IN- INCOME LOSS CAPITAL (000) (000) (000) ------------ ---------- --------- Balanced Fund ..................... $ 198 $ (198) $ -- Capital Appreciation Fund ......... 10,142 6 (10,148) Information & Technology Fund ..... 810 -- (810) International Equity Fund ......... 689 (723) 34 International Equity Index Fund ... (271) 271 -- Life Vision Aggressive Growth Fund 10 -- (10) Life Vision Growth and Income Fund 79 (79) -- Mid-Cap Equity Fund ............... 534 -- (534) Small Cap Growth Stock Fund ....... 6,319 (3,658) (2,661) Tax Sensitive Growth Stock Fund ... 2,595 -- (2,595) Vantage Fund ...................... 28 -- (28) Amounts designated as "--" are either $0 or have been rounded to $0. 97 NOTES TO FINANCIAL STATEMENTS (continued) -------------------------------------------------------------------------------- STI CLASSIC EQUITY FUNDS MAY 31, 2002 The tax character of dividends and distributions paid during the years ended May 31, 2002 and May 31, 2001 were as follows (000): ORDINARY LONG-TERM RETURN OF INCOME CAPITAL GAINS CAPITAL TOTALS 2002 2001 2002 2001 2002 2001 2002 2001 ----- ---- ---- ---- ---- ---- ---- ---- Balanced Fund ..$4,785 $ 7,200 $ 7,838 $ 5,462 $-- $-- $12,623 $ 12,662 Capital Appreciation Fund ......... -- 29,385 13,155 217,524 -- -- 13,155 246,909 Growth and Income Fund ......... 4,435 4,934 -- 27,271 -- -- 4,435 32,205 Information and Technology Fund ......... -- -- -- -- -- -- -- -- International Equity Fund ......... -- 15,298 -- 11,256 -- 3 -- 26,557 International Equity Index Fund ... 778 3,864 -- 1,068 -- -- 778 4,932 Life Vision Aggressive Growth Fund .. 47 862 -- 1,858 10 4 57 2,724 Life Vision Growth and Income Fund .. 598 1,650 -- 1,139 -- -- 598 2,789 Life Vision Moderate Growth Fund .. 1,472 3,398 -- 5,600 -- -- 1,472 8,998 Mid-Cap Equity Fund ......... -- 25,724 -- 15,499 -- 1 -- 41,224 Mid Cap Value Equity Fund .. 128 -- -- -- -- -- 128 -- Small Cap Growth Stock Fund ... -- 8,557 2,415 32,091 -- -- 2,415 40,648 Small Cap Value Equity Fund .. 3,515 3,869 -- -- -- -- 3,515 3,869 Tax Sensitive Growth Stock Fund ... -- -- -- -- -- -- -- -- Value Income Stock Fund ... 8,410 16,671 -- -- -- -- 8,410 16,671 Vantage Fund -- -- -- -- -- -- -- -- Amounts designated as "--" are either $0 or have been rounded to $0. As of May 31, 2002, the components of Distributable Earnings/(accumulated Losses) on a tax basis were as follows (000): UNDISTRIBUTED UNDISTRIBUTED UNREALIZED ORDINARY LONG-TERM APPRECIATION INCOME CAPITAL GAIN (DEPRECIATION) ------------ ------------- -------------- Balanced Fund ................. $ 979 $ -- $ 16,162 Capital Appreciation Fund ..... -- -- 165,449 Growth and Income Fund ........ 1,255 -- 94,546 Information and Technology Fund -- -- (2,151) International Equity Fund ..... 1,450 -- (3,103) International Equity Index Fund 1,081 -- (32,281) Life Vision Aggressive Growth Fund .................. -- -- (1,213) Life Vision Growth and Income Fund .................. 120 -- 424 Life Vision Moderate Growth Fund .................. 287 -- (1,419) Mid-Cap Equity Fund ........... -- -- 22,502 Mid Cap Value Equity Fund ..... 2,269 -- 3,286 Small Cap Growth Stock Fund ... -- 9,070 66,537 Small Cap Value Equity Fund ... 1,041 -- 121,741 Tax Sensitive Growth Stock Fund -- -- 35,186 Value Income Stock Fund ....... 1,409 -- 54,666 Vantage Fund .................. -- -- (302) Amounts designated as "--" are either $0 or have been rounded to $0. The Funds had capital loss carryforwards at May 31, 2002 as follows (000): CAPITAL LOSS CAPITAL LOSS CAPITAL LOSS CARRYOVERS CARRYOVERS CARRYOVERS EXPIRING EXPIRING EXPIRING PORTFOLIO 2006 2007 2008 ---------- ----------- ----------- ------------ Balanced Fund ................. $ -- $ -- $ -- Capital Appreciation Fund ..... -- -- 16,349 Growth and Income Fund ........ -- -- -- Information and Technology Fund -- -- 18 International Equity Fund ..... 3,869 2,086 -- International Equity Index Fund -- -- -- Life Vision Aggressive Growth Fund .................. -- -- -- Life Vision Growth and Income Fund .................. -- -- -- Life Vision Moderate Growth Fund .................. -- -- -- Mid-Cap Equity Fund ........... -- -- -- Small Cap Growth Stock Fund ... -- 4,190 -- Small Cap Value Equity Fund ... -- 13,277 29,374 Tax Sensitive Growth Stock Fund -- 142 40,227 Value Income Stock Fund ....... -- -- -- Vantage Fund .................. -- -- -- CAPITAL LOSS CAPITAL LOSS CARRYOVERS CARRYOVERS POST POST EXPIRING EXPIRING OCTOBER OCTOBER PORTFOLIO 2009 2010 LOSS CURRENCY ---------- ---------- ------------ --------- -------- Balanced Fund ............... $ -- $ -- $ 645 $ -- Capital Appreciation Fund ... -- 4,420 -- -- Growth and Income Fund ...... 723 2,132 -- -- Information and Technology Fund ............ 1,084 68,371 4,228 -- International Equity Fund ... 3,394 27,543 13,255 23 International Equity Index Fund ................. 6,234 23,827 15,376 305 Life Vision Aggressive Growth Fund ................ -- 16 -- -- Life Vision Growth and Income Fund ................ -- 1,546 21 -- Life Vision Moderate Growth Fund ................ -- 584 459 -- Mid-Cap Equity Fund ......... -- 3,489 30,722 -- Small Cap Growth Stock Fund . -- -- -- -- Small Cap Value Equity Fund . -- 3,105 -- -- Tax Sensitive Growth Stock Fund ............... 143,458 -- -- -- Value Income Stock Fund ... 184,255 -- -- -- Vantage Fund ................ -- -- 187 -- Amounts designated as "--" are either $0 or have been rounded to $0. 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. Included in the Capital Appreciation and Small Cap Growth Fund are capital loss carryforwards acquired in previous mergers. Utilization of these losses may be limited in accordance with federal tax regulations. Post-October losses represent losses realized on investment and foreign currency transactions from November 1, 2001 through May 31, 2001 that, in accordance with federal income tax regulations the Fund has elected to defer and treat as having arisen in the following fiscal year. 98 -------------------------------------------------------------------------------- The following Funds had cumulative wash sales for the fiscal year ended May 31, 2002. FUND AMOUNT ----- ---------- Balanced Fund ................................. $ 303,328 Capital Appreciation Fund ..................... 1,518,833 Growth and Income Fund ........................ 800,665 Information and Technology Fund ............... 902,832 International Equity Fund ..................... 3,633,374 International Equity Index Fund ............... 13,641,281 Life Vision Aggressive Growth Fund ............ 1,231,826 Life Vision Growth and Income Fund ............ 2,040,198 Life Vision Moderate Growth Fund .............. 5,971,625 Mid-Cap Equity Fund ........................... 296,949 Mid Cap Value Equity Fund ..................... 2,142 Small Cap Growth Stock Fund ................... 1,794,852 Small Cap Value Equity Fund ................... 22,130 Tax Sensitive Growth Stock Fund ............... 1,378,911 Value Income Stock Fund ....................... 2,006,953 Vantage Fund .................................. 233,737 At May 31, 2002, the total cost of securities and the net realized gains or losses on securities sold for federal income tax purposes are different from amounts reported for financial reporting purposes due to wash sales which cannot be used for federal income tax purposes in the current year and have been deferred for use in future years. The aggregate gross unrealized appreciation and depreciation for securities held by the Funds at May 31, 2002, were as follows: AGGREGATE AGGREGATE NET GROSS GROSS UNREALIZED UNREALIZED UNREALIZED APPRECIATION APPRECIATION (DEPRECIATION) (DEPRECIATION) FUND (000) (000) (000) ---- ------------ ------------ ------------- Balanced Fund ................... $ 30,354 $(14,192) $ 16,162 Capital Appreciation Fund ....... 264,497 (99,048) 165,449 Growth and Income Fund .......... 142,539 (47,993) 94,546 Information and Technology Fund . 1,185 (3,336) (2,151) International Equity Fund ....... 18,742 (21,855) (3,113) International Equity Index Fund . 25,612 (58,006) (32,394) Life Vision Aggressive Growth Fund .................. 1,659 (2,872) (1,213) Life Vision Growth and Income Fund .................. 3,556 (3,132) 424 Life Vision Moderate Growth Fund 5,188 (6,607) (1,419) Mid-Cap Equity Fund ............. 31,470 (8,968) 22,502 Mid Cap Value Equity Fund ....... 13,362 (10,076) 3,286 Small Cap Growth Stock Fund ..... 119,597 (53,060) 66,537 Small Cap Value Equity Fund ..... 135,047 (13,306) 121,741 Tax Sensitive Growth Stock Fund . 72,197 (37,011) 35,186 Value Income Stock Fund ......... 96,079 (41,413) 54,666 Vantage Fund .................... 117 (419) (302) 99 NOTES TO FINANCIAL STATEMENTS (continued) -------------------------------------------------------------------------------- STI CLASSIC EQUITY FUNDS MAY 31, 2002 8. Capital Share Transactions: Capital Share Transactions for the Funds were as follows (000):
CAPITAL GROWTH AND BALANCED FUND APPRECIATION FUND INCOME FUND ------------------------ -------------------------- ----------------------- 06/01/01- 06/01/00- 06/01/01- 06/01/00- 06/01/01- 06/01/00- 05/31/02 05/31/01 05/31/02 05/31/01 05/31/02 05/31/01 ---------- --------- ---------- -------- -------- ---------- Trust Shares: Shares Issued .............................. 7,317 4,141 42,503 15,774 10,865 15,726 Shares Issued in Connection with Fund Reorganizations .......................... -- -- -- 16,143 -- -- Shares Issued in Lieu of Cash Distributions 769 752 676 11,118 115 1,340 Shares Redeemed ............................ (4,133) (5,741) (29,530) (33,979) (11,203) (16,409) ------- --------- --------- -------- -------- -------- Net Trust Share Transactions ............... 3,953 (848) 13,649 9,056 (223) 657 ------- --------- --------- -------- -------- -------- Investor Shares: Shares Issued .............................. 218 35 767 435 145 351 Shares Issued in Lieu of Cash Distributions 27 27 133 2,538 367 75 Shares Redeemed ............................ (100) (187) (2,079) (2,961) (515) (504) ------- --------- --------- -------- -------- -------- Net Investor Share Transactions ............ 145 (125) (1,179) 12 (3) (78) ------- --------- --------- -------- -------- -------- Flex Shares: Shares Issued .............................. 2,104 1,599 3,182 1,334 2,906 2,141 Shares Issued in Connection with Fund Reorganizations .......................... -- -- -- 440 -- -- Shares Issued in Lieu of Cash Distributions 186 160 83 1,358 -- 106 Shares Redeemed ............................ (1,277) (1,419) (2,123) (2,335) (1,215) (1,039) ------- --------- --------- -------- -------- -------- Net Flex Share Transactions ................ 1,013 340 1,142 797 1,691 1,208 ------- --------- --------- -------- -------- -------- Net Change in Capital Shares ............... 5,111 (633) 13,612 9,865 1,465 1,787 ======= ========= ========= ======== ======== ======== LIFE VISION MID-CAP EQUITY MID CAP MODERATE GROWTH FUND FUND VALUE EQUITY FUND --------------------------- -------------------------- ------------------- 06/01/01- 06/01/00- 06/01/01- 06/01/00- 11/30/01*- 05/31/02 05/31/01 05/31/02 05/31/01 05/31/02 ------------ ------------ ----------- ------------ ------------ Trust Shares: Shares Issued .............................. 3,884 5,756 24,362 9,459 17,613 Shares Issued in Lieu of Cash Distributions ........................... 157 920 -- 2,492 2 Shares Redeemed ............................ (2,169) (5,690) (21,065) (12,345) (1,643) ------- -------- -------- -------- -------- Net Trust Share Transactions ............... 1,872 986 3,297 (394) 15,972 ------- -------- -------- -------- -------- Investor Shares: Shares Issued .............................. -- -- 520 635 -- Shares Issued in Lieu of Cash Distributions ........................... -- -- -- 202 -- Shares Redeemed ............................ -- -- (541) (729) -- ------- -------- -------- -------- -------- Net Investor Share Transactions ............ -- -- (21) 108 -- ------- -------- -------- -------- -------- Flex Shares: Shares Issued .............................. -- -- 707 441 518 Shares Issued in Lieu of Cash Distributions ........................... -- -- -- 214 -- Shares Redeemed ............................ -- -- (427) (474) (18) ------- -------- -------- -------- -------- Net Flex Share Transactions ................ -- -- 280 181 500 ------- -------- -------- -------- -------- Net Change in Capital Shares ............... 1,872 986 3,556 (105) 16,472 ======= ======== ======== ======== ========
*Commencement of Operations. Amounts designated as "--" are either $0 or have been rounded to $0. 100 --------------------------------------------------------------------------------
INTERNATIONAL LIFE VISION LIFE VISION INFORMATION AND INTERNATIONAL EQUITY INDEX AGGRESSIVE GROWTH AND TECHNOLOGY FUND EQUITY FUND FUND GROWTH FUND INCOME FUND --------------------- ---------------------- ---------------------- ----------------------- ------------------------ 06/01/01- 06/01/00- 06/01/01- 06/01/00- 06/01/01- 06/01/00- 06/01/01- 06/01/00- 06/01/01- 06/01/00 05/31/02 05/31/01 05/31/02 05/31/01 05/31/02 05/31/01 05/31/02 05/31/01 05/31/02 05/31/01 -------- --------- -------- -------- ------- -------- -------- --------- -------- --------- 1,226 2,421 13,263 4,749 14,145 7,104 1,990 1,350 5,298 2,263 -- -- -- -- -- -- -- -- -- -- -- -- -- 1,877 83 230 6 262 61 270 (3,771) (2,603) (6,505) (10,018) (5,918) (10,554) (722) (876) (1,208) (1,833) -------- ------- -------- -------- -------- -------- ------- ------- -------- -------- (2,545) (182) 6,758 (3,392) 8,310 (3,220) 1,274 736 4,151 700 -------- ------- -------- -------- -------- -------- ------- ------- -------- ---------- -- -- 22,904 3,452 13,957 1,680 -- -- -- -- -- -- -- 70 1 2 -- -- -- -- -- -- (23,074) (3,618) (13,936) (1,701) -- -- -- -- -------- ------- -------- -------- -------- -------- ------- ------- -------- -------- -- -- (170) (96) 22 (19) -- -- -- -- -------- ------- -------- -------- -------- -------- ------- ------- -------- -------- 227 844 893 659 790 577 -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- 80 -- 4 -- -- -- -- (527) (441) (945) (840) (853) (574) -- -- -- -- -------- ------- -------- -------- -------- -------- ------- ------- -------- -------- (300) 403 (52) (101) (63) 7 -- -- -- -- -------- ------- -------- -------- -------- -------- ------- ------- -------- -------- (2,845) 221 6,536 (3,589) 8,269 (3,232) 1,274 736 4,151 700 ======== ======= ======== ======== ======== ======== ======= ======= ======== ======== SMALL CAP GROWTH SMALL CAP VALUE TAX SENSITIVE VALUE INCOME VANTAGE STOCK FUND EQUITY FUND GROWTH STOCK FUND STOCK FUND FUND --------------------- ---------------------- ---------------------- ----------------------- ----------- 06/01/01- 06/01/00- 06/01/01- 06/01/00- 06/01/01- 06/01/00- 06/01/01- 06/01/00- 11/30/01*- 05/31/02 05/31/01 05/31/02 05/31/01 05/31/02 05/31/01 05/31/02 05/31/01 05/31/01 -------- --------- -------- -------- ------- -------- -------- --------- ---------- 11,664 7,958 17,156 17,362 719 3,365 15,102 15,463 929 104 1,679 166 298 -- -- 609 1,281 -- (5,140) (5,529) (8,007) (7,956) (7,405) (7,610) (14,311) (44,811) (16) ------- -------- -------- -------- ------- -------- -------- --------- ----- 6,628 4,108 9,315 9,704 (6,686) (4,245) 1,400 (28,067) 913 ------- -------- -------- -------- ------- -------- -------- --------- ----- 368 345 -- -- -- -- 394 195 -- 6 131 -- -- -- -- 57 131 -- (499) (1,064) -- -- -- -- (970) (2,999) -- ------- -------- -------- -------- ------- -------- -------- --------- ----- (125) (588) -- -- -- -- (519) (2,673) -- ------- -------- -------- -------- ------- -------- -------- --------- ----- 647 472 1,554 294 846 2,438 813 453 89 6 105 1 5 -- -- 4 55 -- (389) (354) (207) (325) (2,309) (2,392) (1,120) (3,011) -- ------- -------- -------- -------- ------- -------- -------- --------- ----- 264 223 1,348 (26) (1,463) 46 (303) (2,503) 89 ------- -------- -------- -------- ------- -------- -------- --------- ----- 6,767 3,743 10,663 9,678 (8,149) (4,199) 578 (33,243) 1,002 ======= ======== ======== ======== ======= ======== ======== ========= =====
101 NOTES TO FINANCIAL STATEMENTS (concluded) -------------------------------------------------------------------------------- STI CLASSIC EQUITY FUNDS MAY 31, 2002 9. Concentration of Credit Risk: The Information and Technology 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. THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS. 102 REPORT OF INDEPENDENT PUBLIC ACCOUNTANTS ------------------------------------------------------------------------------- STI CLASSIC EQUITY FUNDS MAY 31, 2002 To the Shareholders and Board of Trustees of STI Classic Funds: In our opinion, the accompanying statements of net assets of Balanced Fund, Capital Appreciation Fund, Growth & Income Fund, Life Vision Aggressive Growth Fund, Life Vision Growth and Income Fund, Life Vision Moderate Growth Fund, Mid-Cap Equity Fund, Mid-Cap Value Equity Fund, Small Cap Growth Stock Fund, Small Cap Value Equity Fund, Tax Sensitive Growth Stock Fund and Value Income Stock Fund, and the statements of assets and liabilities, including the schedules of investments, of Information & Technology Fund (formerly E-Commerce Opportunity Fund), International Equity Fund, International Equity Index Fund and Vantage Fund (sixteen of the portfolios constituting STI Classic Funds, hereafter referred to as the "Funds") and the related statements of operations and of changes in net assets and the financial highlights present fairly, in all material respects, the financial position of the Funds at May 31, 2002, the results of each of their operations, the changes in each of their net assets and the financial highlights for the year or period then ended, in conformity with accounting principles generally accepted in the United States of America. These financial statements and financial highlights (hereafter referred to as "financial statements") are the responsibility of the Funds' management; our responsibility is to express an opinion on these financial statements based on our audits. We conducted our audits of these financial statements in accordance with auditing standards generally accepted in the United States of America, which require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting principles used and significant estimates made by management, and evaluating the overall financial statement presentation. We believe that our audits, which included confirmation of securities at May 31, 2002, by correspondence with the custodians and brokers, provide a reasonable basis for our opinion. The statements of changes in net assets for the year ended May 31, 2001 and the financial highlights for each of the periods ended May 31, 2001 and November 30, 1998 were audited by other independent accountants whose reports dated July 18, 2001 and January 15, 1999, expressed unqualified opinions on those financial statements. PricewaterhouseCoopers LLP Philadelphia, Pennsylvania July 15, 2002 103 SHAREHOLDER VOTING RESULTS -------------------------------------------------------------------------------- STI CLASSIC EQUITY FUNDS MAY 31, 2002 UNAUDITED The undersigned, being the holder of all of the issued and outstanding shares of the Mid Cap Value Equity Fund and Vantage Fund (each a "Fund" and collectively, the "Funds"), each a series of STI Classic Funds, a Massachusetts business trust (the "Trust"), in accordance with Article V, Sections 1 and 4 of the Trust's Agreement and Declaration of Trust and in lieu of a meeting of shareholders, does hereby consent to and approve the following resolutions: RESOLVED: That SEI Investments Mutual Funds Services (the "Administrator") be, and it hereby is, appointed to serve as Administrator of the Fund and that the Administration Agreement between the Trust and the Administrator including the schedule thereto relating to the Fund, as previously approved by the Trust's Board of Trustees be, and it hereby, approved. RESOLVED: That Trusco Capital Management, Inc. (the "Adviser") be, and it hereby is, appointed to serve as Adviser to the assets of the Fund and that the Investment Advisory Agreement between the Trust and the Adviser on behalf of the fund, previously approved by the Trust's Board of Trustees be, and it is hereby, approved. RESOLVED: That SEI Investments Distribution Co. (the "Distributor") be, and it hereby is, appointed as Distributor of the shares of the Fund and that the Distribution Agreement between the Trust and the Distributor previously approved by the Trust's Board of Trustees with respect to the Fund be, and it is hereby, approved. RESOLVED: That the Distribution and Service Plan between the Trust and the Distributor, with respect to the Flex Shares Class, previously approved by the Trust's Board of Trustees be, and it is hereby, approved. RESOLVED: That the Distribution Plan between the Trust and the Distributor, with respect to the Investor Shares Class, previously approved by the Trust's Board of Trustees be, and it is hereby, approved. 104 FUND REORGANIZATION ------------------------------------------------------------------------------- STI CLASSIC EQUITY FUNDS MAY 31, 2002 UNAUDITED 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. 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 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 (1) Represents the accounting survivor in this business combination. 105 TRUSTEES FOR STI CLASSIC TRUST -------------------------------------------------------------------------------- STI CLASSIC EQUITY FUNDS MAY 31, 2002 Information pertaining to the trustees and officers of the Trust is set forth below. Trustees who are not deemed to be "interested persons" of the Trust as defined in the 1940 Act are referred to as "Independent Board Members." Trustees who are deemed to be "interested persons" of the Trust are referred to as "Interested Board Members." Messrs. Courts and Ridley are Trustees who may be deemed to be "interested" persons of the Trust.
----------------------------------------------------------------------------------------------------------------------------------- TERM OF NUMBER OF OFFICE PORTFOLIOS AND PRINCIPAL IN STI CLASSIC POSITION(S) LENGTH OF OCCUPATION(S) COMPLEX OTHER DIRECTORSHIPS NAME HELD WITH TIME DURING PAST OVERSEEN BY HELD BY AND AGE1 THE TRUST SERVED2 5 YEARS BOARD MEMBER3 BOARD MEMBER4 ------------------------------------------------------------------------------------------------------------------------------------ INDEPENDENT BOARD MEMBERS ------------- Thomas Gallagher, 54 Trustee May 2000 President, Genuine Parts Company 48 Director, National Wholesale Distribution, 1970 to the Service Industries; present. Director, Oxford Industries. Current Trustee of STI Classic Variable Trust. ------------------------------------------------------------------------------------------------------------------------------------ F. Wendell Gooch, 69 Trustee May 1992 Retired. President, Orange County 48 Current Trustee on the Board Publishing Co., Inc., 1981 to 1997, Board of Trustees for the publisher of the Paoli News and the SEI Family of Funds, The Paoli Republican and Editor of the Capitol Mutual Funds and Paoli Republican, 1981 to 1997, STI Classic Variable Trust. President, H & W Distribution, Inc., 1984 to 1997. ------------------------------------------------------------------------------------------------------------------------------------ James O. Robbins, 59 Trustee May 2000 President and Chief Executive 48 Director, NCR; Director, Officer, Cox Communications, Inc., Cox Communications, 1983 to the present. Current Trustee of STI Classic Variable Trust. ------------------------------------------------------------------------------------------------------------------------------------ Jonathan T. Walton, 72 Trustee February 1998 Retired. 48 Trustee, W.K. Kellogg Trust. Current Trustee of STI Classic Variable Trust. ------------------------------------------------------------------------------------------------------------------------------------ INTERESTED BOARD MEMBERS5 ------------- Richard W. Courts, II, Trustee November 2001 Chairman of the Board, Atlantic 48 Current Trustee of STI 66 Investment Company, 1970 to the Classic Variable Trust. present. ------------------------------------------------------------------------------------------------------------------------------------ Clarence H. Ridley, 60 Trustee November 2001 Chairman of the Board; Haverty 48 Current Trustee of STI Furniture Companies, 2001 to the Classic Variable Trust. present; Partner, King and Spaulding LLP (law firm), 1971 to 2000. ------------------------------------------------------------------------------------------------------------------------------------
1 Each trustee may be contacted by writing to c/o STI Classic Funds, SEI Investments Company, Oaks, PA 19456. 2 Each trustee shall hold office during the lifetime of this Trust until the election and qualification of his or her successor, or until he or she sooner dies, resigns or is removed in accordance with the Trust's Declaration of Trust. 3 The "STI Classic Complex" consists of all registered investment companies for which Trusco Capital Management, Inc. serves as investment adviser. As of May 31, 2002, the STI Classic Complex consisted of 48 Funds. 4 Directorships of companies required to report to the U.S. Securities and Exchange Commission under the Securities Exchange Act of 1934 (i.e., "public companies") or other investment companies registered under the 1940 Act. 5 Mr. Courts is deemed an interested trustee because of his directorships with affiliates of the Adviser. Mr. Ridley is deemed an interested trustee because of his material business relationships with the parent to the Adviser. 106 NOTICE TO SHAREHOLDERS ------------------------------------------------------------------------------- STI CLASSIC EQUITY FUNDS MAY 31, 2002 UNAUDITED For shareholders that do not have a May 31, 2002 tax year end, this notice is for informational purposes only. For shareholders with a May 31, 2002 tax year end, please consult your tax advisor as to the pertinence of this notice. For the fiscal year ended May 31, 2002, 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 TOTAL QUALIFYING WITHHOLDING FUND DISTRIBUTION DISTRIBUTION DISTRIBUTIONS DISTRIBUTIONS DIVIDENDS (1) PASS THROUGH (2) ----- ------------ ------------ ------------- ------------- ------------- ---------------- Balanced Fund ........................ 51.66% 10.43% 37.91% 100.00% 20.94% --% Capital Appreciation Fund ............ 10.27 89.73 -- 100.00 -- -- Growth and Income Fund ............... -- -- 100.00 100.00 100.00 -- Information and Technology Fund ...... -- -- -- -- -- -- International Equity Fund ............ -- -- 100.00 100.00 -- 100.00 International Equity Index Fund ...... -- -- 100.00 100.00 -- 49.92 Life Vision Aggressive Growth Fund ... -- -- 100.00 100.00 -- -- Life Vision Growth and Income Fund ... -- -- 100.00 100.00 -- -- Life Vision Moderate Growth Fund ..... -- -- 100.00 100.00 -- -- Mid-Cap Equity Fund .................. -- -- -- -- -- -- Mid Cap Value Equity Fund ............ -- -- 100.00 100.00 29.43 -- Small Cap Growth Stock Fund .......... -- 100.00 -- 100.00 -- -- Small Cap Value Equity Fund .......... -- -- 100.00 100.00 99.14 -- Value Income Stock Fund .............. -- -- 100.00 100.00 98.42 -- Vantage Fund ......................... -- -- -- -- -- --
-------------------------- (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". 107 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-001-0200