-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, CWUJkxP6riQdoqLx26C+wz3+MhJUZPnWxt3hm0mbPpIjNA3VwZH132b8lf6g3a4p xawB97geRIM8jnJKXiZq3w== 0000935069-02-000765.txt : 20020731 0000935069-02-000765.hdr.sgml : 20020731 20020731123925 ACCESSION NUMBER: 0000935069-02-000765 CONFORMED SUBMISSION TYPE: N-30D PUBLIC DOCUMENT COUNT: 1 CONFORMED PERIOD OF REPORT: 20020531 FILED AS OF DATE: 20020731 FILER: COMPANY DATA: COMPANY CONFORMED NAME: STI CLASSIC FUNDS CENTRAL INDEX KEY: 0000883939 IRS NUMBER: 232678674 STATE OF INCORPORATION: MA FISCAL YEAR END: 0531 FILING VALUES: FORM TYPE: N-30D SEC ACT: 1940 Act SEC FILE NUMBER: 811-06557 FILM NUMBER: 02715664 BUSINESS ADDRESS: STREET 1: 2 OLIVER STREET CITY: BOSTON STATE: MA ZIP: 02109 BUSINESS PHONE: 6109896602 MAIL ADDRESS: STREET 1: 530 E SWEDESFORD ROAD CITY: WAYNE STATE: PA ZIP: 19087-1693 N-30D 1 sticlmmretail.txt STI CLASSIC RETAIL MM 5_02 ANNUAL ................................................................................. FINANCIAL REPORT ................................................................................. STI CLASSIC FUNDS ................................................................................. A Family of Mutual Funds ................................................................................. PRIME QUALITY MONEY MARKET FUND TAX-EXEMPT MONEY MARKET FUND U.S. GOVERNMENT SECURITIES MONEY MARKET FUND U.S. TREASURY MONEY MARKET FUND VIRGINIA TAX-FREE MONEY MARKET FUND May 31, 2002 [STI Classic Funds Logo Omitted] [Blank Page] 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 11 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 -13.8% 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 +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 Midcap Index was modestly positive at +2.4%. Longer maturity bonds did well as shown by the +7.8% return of the Lehman Government Credit Index. In general, value stocks did better, and small was better; the Russell 2000 Value 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 1 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 2 STI CLASSIC PRIME QUALITY MONEY MARKET FUND ------------------------------------------- The investment objective of the STI Classic Prime Quality Money Market Fund (the "Fund") is to provide as high a level of current income as is consistent with the preservation of capital and liquidity by investing exclusively in high quality money market instruments. The investment discipline we use in managing the Fund emphasizes adding incremental value through yield curve, sector and credit analysis. Investments are made in those sectors, credits and segments of the yield curve within the universe of money market eligible securities, which offer the most attractive risk/reward trade-off and current yield. The maturity structure and average maturity of the Fund are actively managed to maximize the yield of the Fund based on the current market rates and conditions and our market outlook. The Federal Reserve Board continued to aggressively lower the Federal Funds Rate and the Discount Rate during the second half of 2001. The Federal Funds Rate was lowered from 6.50% at the start of 2001 to 1.75% at the end of 2001. The Fed held rates steady through May 31st of this year as the economy has staged a modest recovery. Our outlook calls for a steady monetary policy from the Federal Reserve in the near term, as the economy attempts a rebound accompanied by very low levels of inflation. Therefore, the portfolio of the Fund has been structured to benefit from this outlook. The Fund was able to meet its objective and was able to provide a very competitive return and yield as compared to its peer money market funds during the year ended May 31, 2002. The Fund's Trust Shares had a one-year return of 2.29% as compared to the iMoneyNet, Inc. First Tier Average of 2.05%. /s/David S. Yealy David S. Yealy Managing Director STI CLASSIC TAX-EXEMPT MONEY MARKET FUND ---------------------------------------- The investment objective of the STI Classic Tax-Exempt Money Market Fund (the "Fund") is to provide as high a level of federal tax exempt current income as is consistent with the preservation of capital and liquidity by investing exclusively in high quality tax-exempt money market instruments. The investment discipline used in managing the Fund emphasizes adding incremental value through yield curve, sector and credit analysis. Investments are made in those sectors, credits and segments of the yield curve within the universe of money market eligible securities, which offer the most attractive risk and reward trade-off and current yield. The maturity structure and average maturity of the Fund are actively managed to maximize the yield of the Fund based on the current market rates and conditions and our market outlook. During 2001, Federal Reserve Board conducted its most aggressive easing of the Federal Funds Rate and the Discount Rate to date. The Federal Reserve lowered the Funds Rate a total of eleven times bringing it to a 40 year low of 1.75%. Our outlook calls for a steady monetary policy from the Federal Reserve in the near term, as the economy attempts a rebound accompanied by very low levels of inflation. Therefore, the portfolio of the Fund has been structured to benefit from this outlook. The Fund was able to meet its objective and was able to provide a very competitive return and yield as compared to its peer money market funds during the year ended May 31, 2002. The Fund's Trust shares had a one-year return of 1.38% as compared to the iMoneyNet, Inc. Tax-Free Stockbroker and General Purpose Average of 1.42%. /s/ Robert S. Bowman Robert S. Bowman, CFA Managing Director 3 STI CLASSIC U.S. GOVERNMENT SECURITIES MONEY MARKET FUND -------------------------------------------------------- The investment objective of the STI Classic U.S. Government Securities Money Market Fund (the "Fund") is to provide as high a level of current income as is consistent with the preservation of capital and liquidity by investing exclusively in money market eligible securities. Eligible securities include U.S. Government Agency securities and repurchase agreements collateralized by U.S. Government Agency obligations. The investment discipline used in managing the Fund emphasizes adding incremental value through yield curve analysis. The maturity structure and average maturity of the Fund are actively managed to maximize the yield of the Fund based on the current market rates and conditions and our market outlook. During 2001, the Federal Reserve Board conducted its most aggressive easing of the Federal Funds Rate and the Discount Rate to date. The Federal Reserve lowered the Funds Rate a total of eleven times bringing it to a 40 year low of 1.75%. Our outlook is that the Federal Reserve will maintain the funds rate at this level for the foreseeable future as inflation remains absent from the economy. With this in mind the Fund has been structured to benefit from a steady rate policy by the Federal Reserve. The Fund was able to meet its objective and was able to provide a very competitive return and yield as compared to its peer money market funds during the year ended May 31, 2002. The Fund's Trust shares had a one-year return of 2.25% as compared to the iMoneyNet, Inc. U.S. Government & Agency Average of 2.07%. /s/Robert S. Bowman Robert S. Bowman, CFA Managing Director STI CLASSIC U.S. TREASURY MONEY MARKET FUND ------------------------------------------- The investment objective of the STI Classic U.S. Treasury Money Market Fund (the "Fund") is to provide as high a level of current income as is consistent with the maintaining of liquidity by investing exclusively in money market eligible securities. Eligible securities include U.S. Treasury securities and repurchase agreements collateralized by U.S. Treasury obligations. The investment discipline we use in managing the Fund emphasizes adding incremental value through yield curve analysis. The maturity structure and average maturity of the Fund are actively managed to maximize the yield of the Fund based on the current market rates and conditions and our market outlook. The Federal Reserve Board continued to aggressively lower the Federal Funds Rate and the Discount Rate during the second half of 2001. The Federal Funds Rate was lowered from 6.50% at the start of 2001 to 1.75% at the end of 2001. The Fed held rates steady through May 31st of this year as the economy has staged a modest recovery. Our outlook calls for a steady monetary policy from the Federal Reserve in the near term, as the economy attempts a rebound accompanied by very low levels of inflation. Therefore, the portfolio of the Fund has been structured to benefit from this outlook. The Fund was able to meet its objective and was able to provide a comparative return and yield as compared to its peer money market funds during the year ended May 31, 2002. The Fund's Trust Shares had a one-year return of 1.96% as compared to the iMoneyNet, Inc. U.S. Treasury & Repo Average of 2.12%. /s/David S. Yealy David S. Yealy Managing Director 4 STI CLASSIC VIRGINIA TAX-FREE MONEY MARKET FUND ----------------------------------------------- The investment objective of the STI Classic Virginia Tax-Free Money Market Fund (the "Fund") is to provide a high level of federal and Virginia tax exempt current income that is consistent with the preservation of capital and liquidity by investing exclusively in high quality tax-exempt money market instruments. The investment discipline used in managing the Fund emphasizes adding incremental value through yield curve, sector and credit analysis. Investments are made in those sectors, credits and segments of the yield curve within the universe of money market eligible securities, which offer the attractive balance between risk and reward and current yield. The maturity structure and average maturity of the Fund are actively managed to maximize the Fund's yield based on current market rates, conditions and outlook. During 2001, the Federal Reserve Board conducted its most aggressive easing of the Federal Funds Rate and the Discount Rate to date. The Federal Reserve lowered the Funds Rate a total of eleven times bringing it to a 40 year low of 1.75%. Our outlook calls for a steady monetary policy from the Federal Reserve in the near term, as the economy attempts a rebound accompanied by very low levels of inflation. Therefore, the portfolio of the Fund has been structured to benefit from this outlook. The Fund was able to meet its objective and to provide a very competitive return and yield as compared to its peer money market funds during the year ended May 31, 2002. The Fund's Trust shares had a one-year return of 1.44% as compared to the iMoneyNet, Inc. Tax-Free Stockbroker & General Purpose Average of 1.42%. /s/Robert S. Bowman Robert S. Bowman, CFA Managing Director 5 STATEMENT OF NET ASSETS - -------------------------------------------------------------------------------- STI CLASSIC FUNDS MAY 31, 2002 PRIME QUALITY MONEY MARKET FUND - -------------------------------------------------------------------------------- FACE AMOUNT (000) VALUE (000) - -------------------------------------------------------------------------------- COMMERCIAL PAPER (30.6%) ASSET BACKED (7.6%) Amstel Funding 1.900%, 06/17/02 $ 2,300 $ 2,298 1.980%, 08/21/02 11,180 11,130 1.970%, 10/15/02 100,000 99,256 2.040%, 11/22/02 75,000 74,261 Beta Finance 1.870%, 06/05/02 9,500 9,498 Edison Asset Securitization 1.890%, 06/14/02 1,000 999 Sigma Finance 1.850%, 06/05/02 84,370 84,353 2.080%, 12/16/02 4,000 3,954 Starfish Global Funding 1.820%, 06/18/02 1,809 1,807 1.800%, 06/18/02 13,028 13,017 1.820%, 06/19/02 3,152 3,149 1.820%, 06/20/02 70,989 70,921 1.810%, 06/20/02 27,996 27,969 1.840%, 06/21/02 6,418 6,411 1.830%, 07/08/02 30,566 30,508 ---------- 439,531 ---------- AUTO FINANCE (2.4%) Volkswagen America 1.825%, 06/05/02 50,000 49,990 1.830%, 06/06/02 50,000 49,987 1.850%, 09/04/02 30,000 29,854 1.950%, 10/16/02 4,050 4,020 1.980%, 10/22/02 9,000 8,929 ---------- 142,780 ---------- BANKS (0.8%) Abbey National North America 1.820%, 06/06/02 17,400 17,395 1.800%, 06/25/02 1,600 1,598 1.800%, 06/25/02 3,900 3,895 - -------------------------------------------------------------------------------- FACE AMOUNT (000) VALUE (000) - -------------------------------------------------------------------------------- BANKS -- CONTINUED Commerzbank 1.850%, 07/08/02 $ 10,700 $ 10,680 Landesbank 1.850%, 08/26/02 15,000 14,934 ---------- 48,502 ---------- DIVERSIFIED OPERATIONS (0.2%) Philip Morris 1.840%, 06/20/02 4,000 3,996 Rio Tinto 1.800%, 06/05/02 8,010 8,009 ---------- 12,005 ---------- DRUGS (0.3%) Aventis 1.800%, 07/02/02 16,400 16,375 ---------- FINANCIAL SERVICES (11.3%) Allianz Financial 1.850%, 07/08/02 4,000 3,992 Cortez Capital 1.800%, 06/21/02 20,300 20,280 Diageo Capital 2.700%, 03/11/03 95,000 92,987 2.420%, 03/12/03 50,000 49,045 Dorada Finance 1.850%, 08/22/02 7,203 7,173 1.850%, 08/23/02 18,500 18,421 General Electric Capital 1.820%, 06/10/02 125,000 124,943 Home Depot Funding 2.000%, 11/18/02 147,000 145,612 Nestle Financial 1.800%, 06/05/02 2,300 2,300 Novartis Finance 1.800%, 06/07/02 27,500 27,492 6 - -------------------------------------------------------------------------------- - -------------------------------------------------------------------------------- FACE AMOUNT (000) VALUE (000) - -------------------------------------------------------------------------------- FINANCIAL SERVICES -- CONTINUED Paccar 1.800%, 06/21/02 $ 1,040 $ 1,039 1.950%, 07/30/02 29,500 29,406 Principal Finance 1.820%, 06/03/02 36,000 35,996 1.800%, 06/12/02 50,000 49,972 Shell Finance 1.880%, 09/30/02 49,750 49,436 ---------- 658,094 ---------- INSURANCE (1.0%) Jefferson-Pilot 1.850%, 07/19/02 8,650 8,629 John Hancock 1.800%, 06/10/02 21,000 20,991 Marsh & McLennan 1.820%, 06/06/02 23,679 23,673 ---------- 53,293 ---------- INVESTMENT BANKER/BROKER DEALER (4.2%) Morgan Stanley Dean Witter 1.900%, 07/25/02 50,000 50,000 UBS Finance 1.810%, 06/03/02 194,000 193,980 ---------- 243,980 ---------- REGIONAL GOVERNMENT AGENCY (0.2%) Quebec Province 1.990%, 11/01/02 12,334 12,230 ---------- UTILITIES (2.6%) Florida Power & Light 2.000%, 06/04/02 1,500 1,500 2.000%, 06/07/02 10,000 9,997 1.850%, 06/11/02 25,000 24,987 1.880%, 06/17/02 40,000 39,966 - -------------------------------------------------------------------------------- FACE AMOUNT (000) VALUE (000) - -------------------------------------------------------------------------------- UTILITIES -- CONTINUED South Carolina Electric & Gas 1.810%, 06/03/02 $ 1,372 $ 1,372 1.800%, 06/10/02 6,500 6,497 1.810%, 06/14/02 18,200 18,188 1.800%, 06/14/02 3,175 3,173 1.800%, 06/17/02 16,494 16,481 South Carolina Fuel 1.840%, 07/02/02 30,513 30,465 ---------- 152,626 ---------- Total Commercial Paper (Cost $1,779,416) 1,779,416 ---------- CORPORATE OBLIGATIONS (47.8%) AGRICULTURE (0.3%) Cargill, MTN (C) 2.010%, 08/28/02 10,000 10,005 2.180%, 01/13/03 10,000 10,012 ---------- 20,017 ---------- ASSET BACKED SECURITIES (5.3%) Beta Finance, MTN 2.370%, 01/10/03 5,000 4,999 1.950%, 04/25/03 75,000 75,000 Dorada Finance, MTN (C) 2.025%, 01/27/03 100,000 99,997 Sigma Finance, MTN (A) (C) 1.965%, 04/28/03 75,000 74,990 1.955%, 04/28/03 50,000 49,991 ---------- 304,977 ---------- AUTO FINANCE (5.1%) American Honda Finance, MTN (C) 1.960%, 07/24/02 57,000 57,009 2.130%, 08/19/02 100,000 100,000 7 STATEMENT OF NET ASSETS - -------------------------------------------------------------------------------- STI CLASSIC FUNDS MAY 31, 2002 PRIME QUALITY MONEY MARKET FUND--CONTINUED - -------------------------------------------------------------------------------- FACE AMOUNT (000) VALUE (000) - -------------------------------------------------------------------------------- AUTO FINANCE -- CONTINUED American Honda Finance, Ser I, MTN (C) 1.900%, 08/23/02 $ 7,000 $ 7,000 Toyota Motor Credit 6.250%, 07/22/02 4,000 4,011 Toyota Motor Credit, MTN (C) 2.040%, 12/23/02 125,000 125,000 ---------- 293,020 ---------- BANKS (8.8%) American Express Centurion Bank (C) 1.820%, 07/03/02 10,000 10,000 1.820%, 12/12/02 50,000 49,997 Bayerische Landesbank, MTN 7.100%, 07/05/02 4,000 4,018 Comerica Bank (C) 1.930%, 06/05/02 75,000 75,001 Commerzbank 5.000%, 09/12/02 4,695 4,735 First Tennessee Bank (C) 2.120%, 09/11/02 100,000 100,000 1.940%, 04/17/03 50,000 50,000 First Union National Bank (C) 2.228%, 06/27/03 20,000 20,052 Key Bank, Ser E, MTN (C) 2.100%, 07/02/02 23,000 23,002 Marshall & Ilsley Bank 1.880%, 02/20/06 (C) 10,000 10,002 6.150%, 12/03/07 101,000 102,723 Wells Fargo 7.200%, 05/01/03 1,950 2,023 Wells Fargo, MTN (C) 1.840%, 06/15/02 50,000 50,000 Wells Fargo, Ser A, MTN (C) 1.990%, 10/30/02 6,250 6,254 - -------------------------------------------------------------------------------- FACE AMOUNT (000) VALUE (000) - -------------------------------------------------------------------------------- BANKS -- CONTINUED Wells Fargo, Ser G, MTN 6.375%, 09/15/02 $ 556 $ 562 5.750%, 02/01/03 5,543 5,658 ---------- 514,027 ---------- DIVERSIFIED OPERATIONS (0.6%) Dupont 6.750%, 10/15/02 5,000 5,077 Philip Morris 7.125%, 08/15/02 10,000 10,063 7.250%, 01/15/03 12,375 12,715 Siemens Capital, Ser XW 8.000%, 06/24/02 7,000 7,023 ---------- 34,878 ---------- DRUGS (1.9%) Bayer (A) 6.500%, 10/01/02 35,250 35,745 4.450%, 03/19/03 75,000 75,850 ---------- 111,595 ---------- ENERGY (0.5%) BP Amoco PLC (A) 7.250%, 09/15/02 16,500 16,747 ChevronTexaco 8.500%, 02/15/03 10,900 11,353 ---------- 28,100 ---------- FINANCIAL SERVICES (8.9%) American Express Credit, Ser B, MTN (C) 1.840%, 04/25/03 25,000 25,000 American General Finance 5.900%, 01/15/03 1,890 1,929 6.200%, 03/15/03 15,000 15,412 8 - -------------------------------------------------------------------------------- - -------------------------------------------------------------------------------- FACE AMOUNT (000) VALUE (000) - -------------------------------------------------------------------------------- FINANCIAL SERVICES -- CONTINUED American General Finance, Ser E, MTN 6.250%, 12/18/02 $ 4,250 $ 4,337 Ameritech Capital Funding 5.875%, 02/19/03 14,440 14,740 Associates (C) 2.040%, 06/15/04 75,000 75,000 Associates, Ser E, MTN 6.875%, 06/20/02 5,000 5,006 Beneficial, Ser H, MTN 6.600%, 09/26/02 500 505 CIT Group, MTN 6.500%, 06/14/02 3,000 3,005 6.375%, 11/15/02 12,000 12,168 5.920%, 01/15/03 3,525 3,594 General Electric Capital (C) 1.840%, 01/22/03 25,000 25,004 1.780%, 08/01/49 1,000 995 General Electric Capital, MTN 5.000%, 01/06/03 1,573 1,599 General Electric Capital, Ser A, MTN 7.000%, 02/03/03 2,255 2,321 General Electric Capital, Ser E, MTN 6.500%, 09/27/02 8,000 8,098 Heller Financial 7.500%, 08/23/02 9,610 9,730 6.440%, 10/06/02 3,650 3,703 6.400%, 01/15/03 12,000 12,291 Heller Financial, Ser J, MTN 2.140%, 07/23/02 4,000 4,002 - -------------------------------------------------------------------------------- FACE AMOUNT (000) VALUE (000) - -------------------------------------------------------------------------------- FINANCIAL SERVICES -- CONTINUED Household Finance 5.875%, 11/01/02 $ 500 $ 506 6.875%, 03/01/03 4,000 4,114 2.340%, 04/17/03 75,000 75,000 Household Finance, MTN 6.125%, 07/15/02 31,380 31,511 6.125%, 02/27/03 10,000 10,182 IBM Credit, MTN 6.000%, 07/24/02 1,000 1,005 6.450%, 11/12/02 1,415 1,441 International Lease Finance, Ser I, MTN, 6.360%, 08/01/02 1,000 1,005 Paccar, Ser J, MTN (C) 2.113%, 06/27/02 20,000 20,002 Pitney Bowes Credit 6.625%, 06/01/02 1,000 1,000 Prudential Funding, MTN 5.970%, 03/17/03 4,375 4,468 Tyco Capital 6.375%, 08/01/02 24,200 24,341 Tyco Capital, MTN 6.375%, 10/01/02 51,000 51,547 5.920%, 11/08/02 5,000 5,074 6.150%, 12/15/02 8,010 8,160 Unilever Capital (C) 2.060%, 10/24/02 10,000 10,005 Verizon Global Funding (A) (C) 1.970%, 11/04/02 25,000 25,011 Wells Fargo Financial 6.375%, 07/16/02 4,000 4,021 7.000%, 01/15/03 10,795 11,098 --------- 517,930 --------- 9 STATEMENT OF NET ASSETS - -------------------------------------------------------------------------------- STI CLASSIC FUNDS MAY 31, 2002 PRIME QUALITY MONEY MARKET FUND--CONTINUED - -------------------------------------------------------------------------------- FACE AMOUNT (000) VALUE (000) - -------------------------------------------------------------------------------- FOOD, BEVERAGE & TOBACCO (0.2%) Anheuser Busch 6.750%, 06/01/05 $ 12,085 $ 12,085 ---------- INDUSTRIAL (0.2%) IBM 7.250%, 11/01/02 9,126 9,307 ---------- INSURANCE (0.0%) ING Groep, MTN 7.125%, 03/01/03 2,010 2,072 ---------- INVESTMENT BANKERS/BROKER DEALERS (6.8%) Bear Stearns 6.500%, 08/01/02 6,245 6,282 6.450%, 08/01/02 3,000 3,016 6.125%, 02/01/03 5,000 5,120 Bear Stearns, Ser B, MTN 1.950%, 05/22/03 75,000 75,000 Credit Suisse First Boston, Ser 1, MTN (C) 2.160%, 08/27/02 100,000 100,000 Goldman Sachs Group, MTN (C) 2.150%, 03/17/03 4,000 4,004 Merrill Lynch 6.640%, 09/19/02 2,000 2,027 Merrill Lynch, MTN (C) 2.030%, 09/12/02 8,750 8,752 Merrill Lynch, Ser 1, MTN (C) 1.970%, 09/23/02 70,000 70,032 Merrill Lynch, Ser B, MTN 2.090%, 07/24/02 (C) 32,300 32,312 5.750%, 11/04/02 1,000 1,015 Morgan Stanley Dean Witter 7.125%, 01/15/03 4,300 4,421 - -------------------------------------------------------------------------------- FACE AMOUNT (000) VALUE (000) - -------------------------------------------------------------------------------- Morgan Stanley Dean Witter, MTN (C) 2.188%, 03/13/03 $ 5,490 $ 5,497 Morgan Stanley Dean Witter, Ser 1, MTN (C) 1.900%, 10/16/02 75,000 75,000 ---------- 392,478 ---------- REGIONAL GOVERNMENT AGENCY (1.6%) Hydro-Quebec 7.375%, 02/01/03 18,055 18,631 Inter-American Development Bank 7.000%, 06/16/03 1,600 1,668 International Bank Reconstruction & Development, MTN 5.500%, 01/21/03 10,000 10,187 Province of Ontario 7.750%, 06/04/02 32,900 32,915 7.375%, 01/27/03 9,500 9,792 Quebec Province 7.500%, 07/15/02 17,221 17,333 ---------- 90,526 ---------- RETAIL (0.4%) May Department Stores 9.875%, 12/01/02 8,698 9,020 McDonald's 6.000%, 06/23/02 4,350 4,361 Target 6.400%, 02/15/03 3,275 3,357 6.625%, 03/01/03 1,000 1,026 Wal-Mart 5.450%, 06/01/02 3,000 3,000 4.625%, 04/15/03 2,000 2,028 ---------- 22,792 ---------- 10 - -------------------------------------------------------------------------------- - -------------------------------------------------------------------------------- FACE AMOUNT (000) VALUE (000) - -------------------------------------------------------------------------------- TELEPHONE & TELECOMMUNICATIONS (5.8%) BellSouth Capital Funding 7.000%, 06/19/02 $ 3,037 $ 3,044 Bell Telephone Company of Pennsylvania 6.125%, 03/15/03 16,000 16,429 BellSouth Telecommunications 6.000%, 06/15/02 3,300 3,304 4.105%, 04/26/03 125,000 126,607 6.250%, 05/15/03 1,570 1,620 GTE South, Ser B 7.250%, 08/01/02 4,750 4,787 GTE Florida, Ser A 6.310%, 12/15/02 3,500 3,565 SBC Communications (A) 4.250%, 06/05/02 100,000 100,000 4.295%, 06/05/03 75,000 76,135 ---------- 335,491 ---------- UTILITIES (1.4%) Alabama Power, Ser O (C) 2.000%, 03/03/03 15,000 15,004 Duke Energy 7.125%, 09/03/02 25,475 25,767 Matsushita Electric 7.250%, 08/01/02 33,400 33,672 Wisconsin Electric Power 6.625%, 12/01/02 7,110 7,259 ---------- 81,702 ---------- Total Corporate Obligations (Cost $2,770,997) 2,770,997 ---------- CERTIFICATES OF DEPOSIT (3.9%) Canadian Imperial Bank 2.090%, 12/31/02 50,000 50,003 - -------------------------------------------------------------------------------- SHARES/FACE AMOUNT (000) VALUE (000) - -------------------------------------------------------------------------------- CERTIFICATES OF DEPOSIT -- CONTINUED Societe Generale, NY 1.758%, 03/24/03 $ 75,000 $ 74,974 Westdeutsche Landesbank, NY 1.760%, 03/24/03 100,000 99,959 ---------- Total Certificates of Deposit - Yankee (Cost $224,936) 224,936 ---------- U.S. GOVERNMENT AGENCY OBLIGATIONS (6.6%) FHLMC (C) 2.200%, 03/12/03 175,000 175,000 FNMA, MTN 6.800%, 01/10/03 10,000 10,254 SLMA 2.280%, 01/27/03 200,000 196,960 SLMA, Ser 1996-3, Cl A1 (C) 2.250%, 10/25/04 12 12 SLMA, Ser 1996-4, Cl A1 (C) 2.240%, 07/25/04 14 14 ---------- Total U.S. Government Agency Obligations (Cost $382,240) 382,240 ---------- CASH EQUIVALENTS (9.7%) AIM Liquid Assets Portfolio 280,155,000 280,155 Federated Prime Value Money Market Fund 285,000,000 285,000 ---------- Total Cash Equivalents (Cost $565,155) 565,155 ---------- REPURCHASE AGREEMENTS (2.6%) JP Morgan Chase 1.775% dated 05/31/02, matures 06/03/02, repurchase price $50,375,698 (collateralized by U.S. Government obligation: total market value $51,378,800) (B) $ 50,368 50,368 11 STATEMENT OF NET ASSETS - -------------------------------------------------------------------------------- STI CLASSIC FUNDS MAY 31, 2002 PRIME QUALITY MONEY MARKET FUND--CONCLUDED - -------------------------------------------------------------------------------- FACE AMOUNT (000) VALUE (000) - -------------------------------------------------------------------------------- REPURCHASE AGREEMENTS -- CONTINUED Lehman Brothers 1.745% dated 05/31/02, matures 06/03/02, repurchase price $18,167,191 (collateralized by U.S. Government obligation: total market value $18,527,822) (B) $ 18,165 $ 18,165 Merrill Lynch 1.765% dated 05/31/02, matures 06/03/02, repurchase price $27,284,426 (collateralized by U.S. Government obligations: total market value $27,826,086) (B) 27,280 27,280 Parabis 1.775% dated 05/31/02, matures 06/03/02, repurchase price $16,538,077 (collateralized by FNMA obligation: total market value $16,866,968) (B) 16,536 16,536 UBS Warburg 1.785% dated 05/31/02, matures 06/03/02, repurchase price $40,660,153 (collateralized by U.S. Government obligations: total market value $41,470,834) (B) 40,654 40,654 ---------- Total Repurchase Agreements (Cost $153,003) 153,003 ---------- Total Investments (101.2%) (Cost $5,875,747) 5,875,747 ---------- - -------------------------------------------------------------------------------- VALUE (000) - -------------------------------------------------------------------------------- OTHER ASSETS AND LIABILITIES, NET (-1.2%) Investment Advisory Fee Payable $ (2,713) Administration Fee Payable (345) Custodian Fee Payable (24) Distribution Fee Payable (299) Other Assets and Liabilities (65,828) ---------- Total Other Assets and Liabilities, Net: (69,209) ---------- NET ASSETS: Portfolio Shares of Trust Class (unlimited authorization -- no par value) based on 3,907,036,162 outstanding shares of beneficial interest 3,907,014 Portfolio Shares of Investor Class (unlimited authorization -- no par value) based on 1,886,954,712 outstanding shares of beneficial interest 1,886,978 Portfolio Shares of Flex Class (unlimited authorization -- no par value) based on 12,301,428 outstanding shares of beneficial interest 12,301 Distributions in excess of net investment income (67) Accumulated net realized gain on investments 312 ---------- Total Net Assets (100.0%) $5,806,538 ========== Net Asset Value, Offering and Redemption Price Per Share -- Trust Class $ 1.00 ========== Net Asset Value, Offering and Redemption Price Per Share -- Investor Class $ 1.00 ========== Net Asset Value, Offering and Redemption Price Per Share -- Flex Class $ 1.00 ========== THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS. FOR DESCRIPTIONS OF ABBREVIATIONS, PLEASE SEE PAGE 33. 12 - -------------------------------------------------------------------------------- TAX-EXEMPT MONEY MARKET FUND - -------------------------------------------------------------------------------- FACE AMOUNT (000) VALUE (000) - -------------------------------------------------------------------------------- MUNICIPAL BONDS (98.2%) ALABAMA (3.5%) Birmingham, Special Care Facilities, Carraway Methodist Health Project, Ser A, RB (C) (D) (E) 1.210%, 08/15/28 $ 11,300 $ 11,300 Birmingham, Special Care Facilities, Ser PT 510, RB (C) (D) 1.620%, 11/15/20 15,000 15,000 Cherokee, Industrial Development Board, BOC Group Project, RB (C) (D) (E) 1.400%, 04/01/08 3,500 3,500 Daphne-Villa Mercy, Special Care Facility Authority, Mercy Medical Project, RB (C) (D) (E) 1.210%, 12/01/27 4,400 4,400 Mobile, Industrial Development Board, Dock & Wharf Holnam Project, Ser A, RB (C) (D) (E) 1.350%, 06/01/32 4,900 4,900 ---------- 39,100 ---------- ARIZONA (0.4%) Salt River Project, Agricultural Improvement & Power District, Electric System, Ser SG-10, RB (C) (D) 1.470%, 01/01/30 4,770 4,770 ---------- CALIFORNIA (1.8%) California State, Housing Finance Agency, Home Mortgage Project, Ser J, RB, FSA (C) (D) 1.550%, 02/01/32 20,300 20,300 ---------- - -------------------------------------------------------------------------------- FACE AMOUNT (000) VALUE (000) - -------------------------------------------------------------------------------- COLORADO (0.7%) Cherry Creek, South Metropolitan District, GO (C) (D) (E) 1.500%, 06/01/06 $ 850 $ 850 Colorado State, Multi-Family Housing Finance Authority, St. Moritz Project, Ser H, RB, FNMA (C) (D) 1.450%, 10/15/16 5,715 5,715 Lowry, Economic Redevelopment Authority, Ser B, RB (C) (D) (E) 1.400%, 12/01/20 1,800 1,800 ---------- 8,365 ---------- DELAWARE (0.2%) Delaware State, Educational Development Authority, RB (C) (D) (E) 1.825%, 10/01/19 1,875 1,875 ---------- DISTRICT OF COLUMBIA (1.3%) District of Columbia, George Washington University, Ser C, RB, MBIA (C) (D) 1.350%, 09/15/29 7,500 7,500 District of Columbia, Planned Parenthood, RB (C) (D) (E) 1.450%, 12/01/29 7,030 7,030 ---------- 14,530 ---------- FLORIDA (13.9%) Collier County, Health Facilities Authority, Cleveland Clinic Health Systems Project, RB (C) (D) 1.600%, 01/01/33 27,000 27,000 13 STATEMENT OF NET ASSETS - -------------------------------------------------------------------------------- STI CLASSIC FUNDS MAY 31, 2002 TAX-EXEMPT MONEY MARKET FUND--CONTINUED - -------------------------------------------------------------------------------- FACE AMOUNT (000) VALUE (000) - -------------------------------------------------------------------------------- FLORIDA -- CONTINUED Dade County, Water & Sewer System, RB, FGIC (C) (D) 1.400%, 10/05/22 $43,460 $ 43,460 Florida State, Multi-Family Housing Finance Authority, Bainbridge Project, Ser M, RB, FNMA, AMT (C) (D) 1.210%, 12/01/25 6,470 6,470 Florida State, Municipal Power Agency, Stanton II Project, Ser 1997, RB, AMBAC (C) (D) 1.150%, 10/01/27 15,000 15,000 Orange County, Health Facilities Authority, Ser PA-95, RB (C) (D) 1.470%, 10/01/14 8,485 8,485 Orange County, Housing Finance Authority, Water View Club Apartment Project, Ser D, RB, FNMA, AMT (C) (D) 1.210%, 08/15/30 6,400 6,400 Osceola County, Housing Finance Authority, Arrow Ridge Apartments Project, Ser A, RB, AMT (C) (D) 1.210%, 10/01/32 10,000 10,000 Palm Beach County, Norton Gallery Project, RB (C) (D) (E) 1.400%, 05/01/25 2,500 2,500 Tampa Bay, Regional Water Supply Authority, RB (C) (D) (E) 1.550%, 10/01/31 9,300 9,300 University of North Florida, Parking System Project, RB (C) (D) (E) 1.500%, 05/01/28 5,700 5,700 - -------------------------------------------------------------------------------- FACE AMOUNT (000) VALUE (000) - -------------------------------------------------------------------------------- FLORIDA -- CONTINUED University of South Florida, COP (C) (D) (E) 1.210%, 01/01/29 $10,850 $ 10,850 University of South Florida, Research Foundation, University Technology Center, RB (C) (D) (E) 1.500%, 12/01/19 11,500 11,500 ---------- 156,665 ---------- GEORGIA (4.8%) Atlanta, Airport Authority, Ser 313, RB, FGIC, AMT (C) (D) 1.450%, 01/01/18 3,335 3,335 Atlanta, Airport Authority, Ser SG 138, RB (C) (D) 1.500%, 01/01/26 6,600 6,600 Cobb County, Educational Facilities Development Authority, Kennesaw State University Project, RB, AMBAC (C) (D) 1.400%, 11/01/18 5,805 5,805 Dekalb County, Development Authority, Green Forest Community Development Project, RB (C) (D) (E) 1.400%, 02/01/22 7,000 7,000 Fulton County, Development Authority, American National Red Cross Project, RB (C) (D) (E) 1.400%, 08/01/05 800 800 Fulton County, Development Authority, Metropolitan Atlanta YMCA Project, RB (C) (D) (E) 1.400%, 11/01/22 8,500 8,500 14 - -------------------------------------------------------------------------------- - -------------------------------------------------------------------------------- FACE AMOUNT (000) VALUE (000) - -------------------------------------------------------------------------------- GEORGIA -- CONTINUED Georgia State, Eagle Trust, RB (C) (D) 1.500%, 07/01/15 $ 7,025 $ 7,025 Houston County, Development Authority, Clean Control Project, RB, AMT (C) (D) (E) 1.650%, 06/01/20 3,325 3,325 Metropolitan Atlanta, Rapid Transportation Authority, Ser SG-57, RB, AMBAC (C) (D) 1.470%, 07/01/20 5,000 5,000 Mitchell County, Industrial Development Authority, City of Camille Project, RB (C) (D) (E) 1.450%, 03/01/15 3,600 3,600 Savannah, Economic Development Authority, Exempt Facilities- Construction Utilities Project, RB, AMT (C) (D) (E) 1.650%, 12/01/19 1,365 1,365 Savannah, Economic Development Authority, Kennickell Printing Project, RB, AMT (C) (D) (E) 1.650%, 09/01/11 2,200 2,200 ---------- 54,555 ---------- IDAHO (0.4%) Idaho State, Housing & Finance Association, Ser PA-115, RB (C) (D) 1.550%, 01/01/27 4,106 4,106 ---------- ILLINOIS (7.3%) Bloomington, Normal Airport Authority, GO (C) (D) 1.500%, 01/01/12 1,000 1,000 - -------------------------------------------------------------------------------- FACE AMOUNT (000) VALUE (000) - -------------------------------------------------------------------------------- ILLINOIS -- CONTINUED Chicago, Airport Special Facilities, Centerpoint O'Hare Project, RB, AMT (C) (D) (E) 1.550%, 09/01/32 $ 2,800 $ 2,800 Chicago, Merlots Project, Ser WWW, GO 2.600%, 01/01/22 11,000 11,000 Chicago, Water Authority, Merlots Project, Ser A, GO 1.650%, 11/01/30 14,995 14,995 Illinois State, Development Finance Authority, Lyric Opera Chicago Project, RB (C) (D) (E) 1.400%, 12/01/28 10,000 10,000 Illinois State, Educational Facilities Authority, Chicago Childrens Museum Project, RB (C) (D) (E) 1.450%, 02/01/28 1,600 1,600 Illinois State, Educational Facilities Authority, Museum of Science & Industry Project, RB (C) (D) (E) 1.400%, 11/01/15 5,100 5,100 Illinois State, Health Facilities Authority, Advocate Health Care, Ser B, RB (C) (D) 1.600%, 08/15/22 2,300 2,300 Illinois State, Health Facilities Authority, Proctor Hospital Project, RB (C) (D) (E) 1.450%, 01/01/12 4,500 4,500 Illinois State, Industrial Development Finance Authority, Derby Project, RB, AMT (C) (D) (E) 1.700%, 10/01/07 500 500 15 STATEMENT OF NET ASSETS - -------------------------------------------------------------------------------- STI CLASSIC FUNDS MAY 31, 2002 TAX-EXEMPT MONEY MARKET FUND--CONTINUED - -------------------------------------------------------------------------------- FACE AMOUNT (000) VALUE (000) - -------------------------------------------------------------------------------- ILLINOIS -- CONTINUED Illinois State, Regional Transportation Authority, Ser SG-82, RB, MBIA (C) (D) 1.470%, 06/01/25 $17,500 $ 17,500 Lockport, Industrial Development Authority, Panduit Project, RB, AMT (C) (D) (E) 1.550%, 04/01/25 2,000 2,000 Macon County, Millikin University Project, RB, AMBAC (C) (D) 1.400%, 10/01/28 4,700 4,700 Savanna, Industrial Development Authority, Metform Project, Ser A, RB, AMT (C) (D) (E) 1.550%, 05/01/14 500 500 Savanna, Industrial Development Authority, Metform Project, Ser B, RB, AMT (C) (D) (E) 1.550%, 06/01/09 1,400 1,400 Wheeling, Industrial Development Authority, Circuit Service Project, RB, AMT (C) (D) (E) 1.700%, 04/01/18 2,200 2,200 ---------- 82,095 ---------- INDIANA (3.6%) Elkhart County, Industrial Economic Development Authority, Holly Park Project, RB, AMT (C) (D) (E) 1.700%, 02/01/10 1,800 1,800 - -------------------------------------------------------------------------------- FACE AMOUNT (000) VALUE (000) - -------------------------------------------------------------------------------- INDIANA -- CONTINUED Fort Wayne, Industrial Economic Development Authority, Technical Project, RB, AMT (C) (D) (E) 1.550%, 07/01/09 $ 1,000 $ 1,000 Indiana State, Development Finance Authority, Culver Educational Project, RB (C) (D) (E) 1.400%, 01/01/32 12,700 12,700 Indiana State, Development Finance Authority, Historical Society Project, RB (C) (D) (E) 1.450%, 08/01/31 1,200 1,200 Indiana State, Educational Facilities Authority, Wesleyan Project, Ser B, RB (C) (D) (E) 1.550%, 06/01/28 2,500 2,500 Indiana State, Health Facilities Financing Authority, Clarian Health Partners Project, Ser B, RB (C) (D) 1.500%, 02/15/26 2,000 2,000 Jasper, Industrial Economic Development Authority, Wabash Valley Produce Project, RB, AMT (C) (D) (E) 1.700%, 06/01/05 1,400 1,400 La Porte County, Industrial Economic Development Authority, Pedcor Investments-Woodland Project, RB, AMT (C) (D) (E) 1.560%, 10/01/29 2,000 2,000 16 - -------------------------------------------------------------------------------- - -------------------------------------------------------------------------------- FACE AMOUNT (000) VALUE (000) - -------------------------------------------------------------------------------- INDIANA -- CONTINUED Marshall County, Industrial Economic Development Authority, Culver Educational Foundation Project, RB (C) (D) (E) 1.450%, 01/01/35 $ 8,300 $ 8,300 Michigan City, Industrial Economic Development Authority, Performance Packaging Project, RB, AMT (C) (D) (E) 1.700%, 09/01/06 500 500 Warren Township, Vision 2005, Merlots, Ser A52, RB, FGIC (C) (D) (E) 1.500%, 07/15/20 6,600 6,600 ---------- 40,000 ---------- IOWA (0.5%) Sac County, Industrial Development Authority, Evapco Project, RB, AMT (C) (D) (E) 1.600%, 07/01/16 3,280 3,280 West Des Moines, Commercial Development Authority, Greyhound Lines Project, RB (C) (D) (E) 1.450%, 12/01/14 2,500 2,500 ---------- 5,780 ---------- KANSAS (0.9%) Sedgwick & Shawnee Counties, Ser PT 227, RB (C) (D) (E) 1.550%, 12/01/22 10,235 10,235 ---------- - -------------------------------------------------------------------------------- FACE AMOUNT (000) VALUE (000) - -------------------------------------------------------------------------------- KENTUCKY (0.4%) Kentucky State, Development Districts Financing Authority, RB (C) (D) (E) 1.500%, 06/01/33 $ 4,100 $ 4,100 ---------- LOUISIANA (0.7%) Calcasieu Parish, Industrial Development Board, Hydroserve Westlake Project, RB, AMT (C) (D) (E) 1.500%, 06/01/25 5,000 5,000 Louisiana State, Public Facilities Authority, Pollution Control, Ciba-Geigy Project, RB (C) (D) (E) 1.400%, 12/01/04 2,400 2,400 ---------- 7,400 ---------- MARYLAND (2.9%) Howard County, Economic Development Authority, Norbell School Project, RB (C) (D) (E) 1.500%, 02/01/28 5,000 5,000 Maryland State, Community Development Administration Authority, Ser 170, RB (C) (D) 1.470%, 04/01/18 5,445 5,445 Maryland State, Ser PA 816, GO (C) (D) 1.440%, 03/01/15 5,800 5,800 Montgomery County, Housing Opportunities Authority, Multi-Family Housing, Falklands Project, Ser B, RB (C) (D) 1.110%, 08/01/15 16,000 16,000 ---------- 32,245 ---------- 17 STATEMENT OF NET ASSETS - -------------------------------------------------------------------------------- STI CLASSIC FUNDS MAY 31, 2002 TAX-EXEMPT MONEY MARKET FUND--CONTINUED - -------------------------------------------------------------------------------- FACE AMOUNT (000) VALUE (000) - -------------------------------------------------------------------------------- MASSACHUSETTS (1.3%) Massachusetts State, Development Finance Authority, Ser PT 514, RB (C) (D) 1.600%, 10/01/29 $14,340 $ 14,340 ---------- MICHIGAN (0.2%) Michigan State, Strategic Fund, Consolidated Industrial Project, RB, AMT (C) (D) (E) 1.700%, 01/01/19 2,000 2,000 Oakland County, Economic Development Authority, Moody Family Limited Project, RB, AMT (C) (D) (E) 1.700%, 09/01/12 800 800 ---------- 2,800 ---------- MISSOURI (0.3%) Carthage, Industrial Development Authority, Schrieber Project, RB, AMT (C) (D) (E) 1.550%, 11/01/10 3,100 3,100 Missouri State, Environmental Improvement & Energy Resource Authority, Utilicorp United Project, RB, AMT (C) (D) (E) 1.550%, 05/01/28 700 700 ---------- 3,800 ---------- MONTANA (0.8%) Missoula County, Economic Development Authority, Dinny Stranahan Research Project, RB (C) (D) (E) 1.450%, 06/01/20 8,500 8,500 ---------- - -------------------------------------------------------------------------------- FACE AMOUNT (000) VALUE (000) - -------------------------------------------------------------------------------- NEVADA (1.3%) Clark County, Airport Improvement Authority, Sub-Lien Ser A-2, RB, AMT (C) (D) (E) 1.210%, 07/01/25 $ 4,595 $ 4,595 Nevada State, Ser 344, GO, FGIC (C) (D) 1.550%, 05/15/28 5,495 5,495 Nevada State, Ser SG-114, RB (C) (D) 1.470%, 03/01/27 5,000 5,000 ---------- 15,090 ---------- NEW HAMPSHIRE (0.3%) New Hampshire State, Housing Finance Authority, Ser PT-348, RB (C) (D) (E) 1.550%, 07/01/29 2,920 2,920 ---------- NEW JERSEY (5.4%) New Jersey State, Housing & Maintaining Finance Agency, Ser PT-1882, RB, MBIA (C) (D) 1.350%, 04/01/26 16,420 16,420 New Jersey State, Ser PA-801, COP, FHLMC (C) (D) 1.350%, 09/15/14 7,300 7,300 New Jersey State, Transportation Authority, Ser PA-902, RB, MBIA (C) (D) 1.350%, 12/15/05 17,020 17,020 New Jersey State, Turnpike Authority, Ser D, RB, FGIC (C) (D) (E) 1.300%, 01/01/18 20,600 20,600 ---------- 61,340 ---------- 18 - -------------------------------------------------------------------------------- - -------------------------------------------------------------------------------- FACE AMOUNT (000) VALUE (000) - -------------------------------------------------------------------------------- NEW MEXICO (0.3%) Las Cruces, RB, MBIA 5.250%, 12/01/02 $ 2,960 $ 3,011 ---------- NEW YORK (5.6%) Babylon, Industrial Development Agency, Ogden Martin Project, RB, FSA (C) (D) 1.550%, 01/01/19 25,720 25,720 New York City, Municipal Water Financing Authority, Ser SGB-27, RB, FSA (C) (D) 1.350%, 06/15/24 9,000 9,000 New York State, Dormitory Authority, Ser PA-781, RB, FSA (C) (D) 1.320%, 05/15/17 6,655 6,655 New York State, Triborough Bridge & Tunnel Authority, General Purpose Project, Ser C, GO, AMBAC (C) (D) 1.300%, 01/01/32 20,000 20,000 Southeast New York, Industrial Development Agency, Unilock New York Project, RB, AMT (C) (D) (E) 1.550%, 12/01/12 2,200 2,200 ---------- 63,575 ---------- NORTH CAROLINA (4.4%) Charlotte, Airport Authority, Ser A, RB, AMT, MBIA (C) (D) 1.450%, 07/01/17 4,100 4,100 Cleveland County, Family YMCA, RB (C) (D) (E) 1.500%, 08/01/18 2,690 2,690 - -------------------------------------------------------------------------------- FACE AMOUNT (000) VALUE (000) - -------------------------------------------------------------------------------- NORTH CAROLINA -- CONTINUED Guilford County, Industrial & Recreational Facilities Authority, YMCA Project, RB (C) (D) (E) 1.500%, 02/01/23 $ 5,000 $ 5,000 Mecklenburg County, Public Improvement, Ser C, GO (C) (D) 1.400%, 02/01/14 5,000 5,000 Mecklenburg County, Ser C, GO (C) (D) 1.370%, 02/01/18 8,850 8,850 North Carolina State, Educational Facilities Finance Agency, Guilford College, RB, MBIA (C) (D) 1.450%, 05/01/24 2,200 2,200 North Carolina State, Educational Facilities Finance Agency, Wake Forest University, RB (C) (D) 1.400%, 01/01/18 13,675 13,675 North Carolina State, Medical Care Community Hospital, Lutheran Services For The Aging Project, RB (C) (D) (E) 1.450%, 03/01/28 8,135 8,135 ---------- 49,650 ---------- OHIO (7.7%) Cincinnati, Student Loan Funding Authority, Ser A-2, RB, AMT (C) (D) 1.500%, 08/01/10 29,300 29,300 Cuyahoga County, Hospital Facilities Authority, Cleveland Clinic Foundation, Ser A, RB (C) (D) 1.450%, 01/01/24 5,600 5,600 19 STATEMENT OF NET ASSETS - -------------------------------------------------------------------------------- STI CLASSIC FUNDS MAY 31, 2002 TAX-EXEMPT MONEY MARKET FUND--CONTINUED - -------------------------------------------------------------------------------- FACE AMOUNT (000) VALUE (000) - -------------------------------------------------------------------------------- OHIO -- CONTINUED Ohio State, Air Quality Development Authority, JMG Limited Partnership, Ser A, RB, AMT (C) (D) (E) 1.210%, 04/01/28 $ 3,000 $ 3,000 Ohio State, Environmental Improvement Authority, Newark Group Industries Project, RB, AMT (C) (D) (E) 1.280%, 12/01/26 4,455 4,455 Ohio State, Higher Educational Facility Commission, Pooled Financing Project, RB (C) (D) (E) 1.550%, 09/01/18 4,475 4,475 Ohio State, Housing Finance Authority, RB (C) (D) 1.500%, 03/01/07 11,110 11,110 Rickenbacker, Port Authority, YMCA Central Ohio Project, RB (C) (D) (E) 1.400%, 05/01/22 10,500 10,500 Toledo, City Services, Special Assessment (C) (D) (E) 1.450%, 12/01/04 9,700 9,700 Warren County, Health Care Improvement, Otterbein Project, Ser A, RB (C) (D) (E) 1.260%, 07/01/21 8,840 8,840 ---------- 86,980 ---------- PENNSYLVANIA (2.2%) Cambria County, Industrial Development Authority, Cambria Cogeneration Project, Ser A-1, RB, AMT (C) (D) (E) 1.450%, 12/01/28 7,125 7,125 - -------------------------------------------------------------------------------- FACE AMOUNT (000) VALUE (000) - -------------------------------------------------------------------------------- PENNSYLVANIA -- CONTINUED Delaware River Port Authority, RB, FSA, (C) (D) 1.350%, 01/01/18 $ 7,000 $ 7,000 Pennsylvania State, Intergovernmental Cooperation Authority, Special Tax Revenue, Ser SG-67, RB, FGIC (C) (D) 1.410%, 06/15/20 630 630 Philadelphia, Industrial Development Authority, Chemical Heritage Foundation Project, RB (C) (D) (E) 1.400%, 07/01/27 9,800 9,800 ---------- 24,555 ---------- SOUTH CAROLINA (4.3%) Newberry County, Memorial Hospital Authority, RB (C) (D) (E) 1.400%, 12/01/29 10,000 10,000 South Carolina State, Educational Facilities Authority, Newberry College Project, RB (C) (D) (E) 1.500%, 08/01/22 4,000 4,000 South Carolina State, Housing Finance & Development Authority, Ser PT 1272, RB, FHLMC (C) (D) 1.620%, 12/15/30 10,000 10,000 South Carolina State, Jobs Economic Development Authority, Anderson Area YMCA Project, RB (C) (D) (E) 1.500%, 11/01/24 7,100 7,100 20 - -------------------------------------------------------------------------------- - -------------------------------------------------------------------------------- FACE AMOUNT (000) VALUE (000) - -------------------------------------------------------------------------------- SOUTH CAROLINA -- CONTINUED South Carolina State, Jobs Economic Development Authority, Carolina Village, RB (C) (D) (E) 1.500%, 02/01/22 $ 4,905 $ 4,905 South Carolina State, Jobs Economic Development Authority, Developmental Foundation Project, RB (C) (D) (E) 1.500%, 12/01/10 6,000 6,000 South Carolina State, Jobs Economic Development Authority, Diversified Coating Project, RB (C) (D) (E) 1.650%, 04/01/17 2,000 2,000 University of South Carolina, Development Foundation, RB (C) (D) (E) 1.500%, 12/01/10 4,000 4,000 ---------- 48,005 ---------- TENNESSEE (1.2%) Covington, Industrial Development Board, Charms Project, RB, AMT (C) (D) (E) 1.550%, 06/01/27 3,000 3,000 Metropolitan Government Nashville & Davidson County, Eagle Trust, GO (C) (D) (E) 1.500%, 11/15/18 10,000 10,000 ---------- 13,000 ---------- - -------------------------------------------------------------------------------- FACE AMOUNT (000) VALUE (000 - -------------------------------------------------------------------------------- TEXAS (7.3%) Coastal Bend, Health Facilities Development Authority, Incarnate World Health Systems, Ser B, RB, AMBAC (C) (D) 1.260%, 08/15/28 $17,400 $ 17,400 Georgetown, Higher Education Finance Authority, Southwestern University Project, RB (C) (D) (E) 1.450%, 10/01/14 2,000 2,000 Houston, Airport System, Ser SG 149, RB, FSA (C) (D) 1.500%, 07/01/28 17,500 17,500 Houston, Higher Education Finance Authority, Rice University, Ser SG 139, RB (C) (D) 1.470%, 11/15/29 3,100 3,100 Houston, Water & Sewer System Authority, Ser SG 78, RB (C) (D) 1.470%, 12/01/25 8,835 8,835 Pearland, Independent School District, Ser SG 106, GO 1.470%, 02/15/22 6,245 6,245 South Texas, Higher Education Authority, RB, AMT, MBIA (C) (D) 1.450%, 12/01/29 14,200 14,200 Texas State, Eagle Trust, Ser 991301, GO (C) (D) 1.500%, 06/01/25 9,900 9,900 Texas State, Lower Colorado River Authority, Merlots, Ser ZZZ, RB (C) (D) 2.600%, 10/01/28 3,500 3,500 ---------- 82,680 ---------- 21 STATEMENT OF NET ASSETS - -------------------------------------------------------------------------------- STI CLASSIC FUNDS MAY 31, 2002 TAX-EXEMPT MONEY MARKET FUND--CONTINUED - -------------------------------------------------------------------------------- FACE AMOUNT (000) VALUE (000) - -------------------------------------------------------------------------------- VIRGINIA (8.8%) Ashland, Industrial Development Authority, Health & Community Services Facilities Authority, YMCA Greater Richmond Project, Ser A RB (C) (D) (E) 1.400%, 11/01/20 $ 1,085 $ 1,085 Fairfax County, Industrial Development Authority, Fairfax Hospital Project, Ser B, RB (C) (D) 1.240%, 10/01/25 6,300 6,300 Fairfax County, Industrial Development Authority, Innovations Health Systems, RB (C) (D) 1.240%, 01/01/30 9,800 9,800 Front Royal & Warren County, Industrial Development Authority, Pen Tab Industries Project, RB, AMT (C) (D) (E) 1.550%, 04/01/15 2,300 2,300 Greenville County, Industrial Development Authority, Blue Ridge School, RB (C) (D) 1.500%, 06/01/26 3,640 3,640 Hanover County, Industrial Development Authority, Covenant Woods Project, RB (C) (D) (E) 1.500%, 07/01/29 2,925 2,925 Norfolk, Eagle Trust, Ser 944601, GO 1.500%, 06/01/05 12,400 12,400 Richmond, GO (C) (D) 1.500%, 01/15/16 4,800 4,800 Richmond, Public Utilities Authority, Ser A, RB (C) (D) 1.500%, 06/30/03 17,900 17,900 - -------------------------------------------------------------------------------- FACE AMOUNT (000) VALUE (000) - -------------------------------------------------------------------------------- VIRGINIA -- CONTINUED Richmond, Redevelopment & Multi-Family Housing Authority, Ser PT-1022, RB (C) (D) 1.580%, 11/01/29 $16,000 $ 16,000 Suffolk, Industrial Development Authority, Lake Prince Center Project, RB (C) (D) (E) 1.550%, 10/01/05 4,000 4,000 Virginia State, Biotechnology Research Park Authority, RB (C) (D) (E) 1.400%, 04/01/27 12,000 12,000 Virginia State, Public School Equipment Authority, RB 5.000%, 04/01/03 6,000 6,142 ---------- 99,292 ---------- WASHINGTON (2.2%) Seattle, Ser 348, GO (C) (D) 1.550%, 12/15/28 4,495 4,495 Washington State, Public Power Supply System, Nuclear Power Project No.1, Ser 1A-1, RB (C) (D) (E) 1.300%, 07/01/17 4,340 4,340 Washington State, Public Power Supply System, Nuclear Project No. 2, Ser 2A-1, RB, MBIA (C) (D) 1.350%, 07/01/12 4,800 4,800 Washington State, Public Power Supply System, Nuclear Project No. 3, Ser 3A-3, RB (C) (D) (E) 1.350%, 07/01/18 11,215 11,215 ---------- 24,850 ---------- 22 - -------------------------------------------------------------------------------- - -------------------------------------------------------------------------------- FACE AMOUNT (000) VALUE (000) - -------------------------------------------------------------------------------- WISCONSIN (1.3%) Appleton, Industrial Development Authority, Pro Lable Project, RB, AMT (C) (D) (E) 1.800%, 11/01/12 $ 690 $ 690 Germantown, Industrial Development Authority, Speaker Project, RB, AMT (C) (D) (E) 1.800%, 08/01/11 745 745 Holland, Industrial Development Authority, White Clover Dairy Project, RB, AMT (C) (D) (E) 1.700%, 06/01/13 1,270 1,270 Oconomowoc, Industrial Development Authority, Quest Technologies Project, RB, AMT (C) (D) (E) 1.700%, 05/01/18 1,380 1,380 Tax-Exempt Grantor Trust, IBM, Ser 1999-A, RB (C) (D) 1.650%, 03/14/06 360 360 Wisconsin State, Health & Educational Facilities Authority, Felician Services Project, Ser A, AMBAC (C) (D) 1.210%, 01/01/20 10,300 10,300 ---------- 14,745 ---------- Total Municipal Bonds (Cost $1,105,254) 1,105,254 ---------- - -------------------------------------------------------------------------------- SHARES VALUE (000) - -------------------------------------------------------------------------------- CASH EQUIVALENTS (1.6%) Financial Square Tax Free Portfolio 1,729,746 $ 1,730 SEI Institutional Tax Free Fund 17,000,000 17,000 ---------- Total Cash Equivalents (Cost $18,730) 18,730 ---------- Total Investments (99.8%) (Cost $1,123,984) 1,123,984 ---------- OTHER ASSETS AND LIABILITIES, NET (0.2%) Investment Advisory Fee Payable (437) Administration Fee Payable (67) Custodian Fee Payable (5) Distribution Fee Payable (22) Other Assets and Liabilities 2,422 ---------- Total Other Assets and Liabilities, Net: 1,891 ---------- NET ASSETS: Portfolio Shares of Trust Class (unlimited authorization -- no par value) based on 907,726,352 outstanding shares of beneficial interest 907,727 Portfolio Shares of Investor Class (unlimited authorization -- no par value) based on 218,027,773 outstanding shares of beneficial interest 218,028 Accumulated net realized gain on investments 120 ---------- Total Net Assets (100.0%) $1,125,875 ========== Net Asset Value, Offering and Redemption Price Per Share -- Trust Class $ 1.00 ========== Net Asset Value, Offering and Redemption Price Per Share -- Investor Class $ 1.00 ========== THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS. FOR DESCRIPTIONS OF ABBREVIATIONS, PLEASE SEE PAGE 33. 23 STATEMENT OF NET ASSETS - -------------------------------------------------------------------------------- STI CLASSIC FUNDS MAY 31, 2002 U.S. GOVERNMENT SECURITIES MONEY MARKET FUND - -------------------------------------------------------------------------------- FACE AMOUNT (000) VALUE (000) - -------------------------------------------------------------------------------- U.S. GOVERNMENT AGENCY OBLIGATIONS (78.7%) FFCB 0.000%, 06/10/03 (F) $60,000 $ 60,000 FFCB Discount Note (G) 2.218%, 02/14/03 15,000 14,766 FHLB (C) 2.500%, 04/01/03 25,000 25,000 FHLB, Ser 5302 (C) 2.060%, 07/11/02 50,000 50,000 FHLB, Ser 5803 (C) 1.880%, 01/28/03 35,000 35,000 FHLB, Ser 9403 (C) 1.880%, 02/05/03 50,000 50,000 FHLB, Ser DV02 (C) 1.910%, 11/27/02 50,000 50,000 FHLB, Ser EM03 (C) 1.835%, 03/14/03 40,000 40,000 FHLB, Ser Q803 2.250%, 02/07/03 14,500 14,500 FHLMC Discount Notes (G) 3.500%, 06/24/02 25,000 24,946 3.482%, 08/15/02 30,000 29,789 2.147%, 11/07/02 15,000 14,860 2.411%, 12/11/02 15,000 14,809 2.224%, 12/13/02 15,000 14,822 1.905%, 01/02/03 10,000 9,888 2.161%, 01/17/03 15,000 14,797 2.329%, 01/30/03 25,000 24,615 2.308%, 03/27/03 10,000 9,812 2.428%, 04/24/03 10,000 9,785 FNMA (C) 2.060%, 07/24/02 40,000 40,000 1.780%, 12/06/02 25,000 24,998 1.900%, 12/12/02 75,000 75,000 1.880%, 01/10/03 50,000 50,000 2.250%, 02/07/03 20,000 20,000 - -------------------------------------------------------------------------------- SHARES/FACE AMOUNT (000) VALUE (000) - -------------------------------------------------------------------------------- U.S. GOVERNMENT AGENCY OBLIGATIONS -- CONTINUED FNMA Discount Notes 3.444%, 07/12/02 (G) $35,000 $ 34,867 0.000%, 10/02/02 (F) 30,000 29,785 2.161%, 10/18/02 (G) 25,000 24,795 2.196%, 11/29/02 (G) 10,000 9,892 1.957%, 01/10/03 (G) 20,000 19,763 2.793%, 03/07/03 (G) 15,000 14,684 2.447%, 04/04/03 (G) 15,000 14,694 2.383%, 05/02/03 (G) 10,000 9,783 SLMA Discount Note (F) 0.000%, 01/27/03 25,000 24,620 SLMA, MTN (C) 1.860%, 02/18/03 25,000 24,997 1.860%, 03/07/03 25,000 24,996 ---------- Total U.S. Government Agency Obligations (Cost $950,263) 950,263 ---------- CASH EQUIVALENTS (8.3%) Dreyfus Government Cash Management Fund 50,000,000 50,000 Financial Square Government Portfolio 50,000,000 50,000 ---------- Total Cash Equivalents (Cost $100,000) 100,000 ---------- REPURCHASE AGREEMENTS (17.9%) JP Morgan Chase 1.765% dated 05/31/02, matures 06/03/02, repurchase price $74,399,377 (collateralized by U.S. Government obligation: total market value $75,878,081) (B) $74,390 74,390 24 - -------------------------------------------------------------------------------- - -------------------------------------------------------------------------------- FACE AMOUNT (000) VALUE (000) - -------------------------------------------------------------------------------- REPURCHASE AGREEMENTS -- CONTINUED Lehman Brothers 1.745% dated 05/31/02, matures 06/03/02, repurchase price $39,338,127 (collateralized by FNMA obligations: total market value $40,116,672) (B) $39,332 $ 39,332 Merrill Lynch 1.765% dated 05/31/02, matures 06/03/02, repurchase price $19,163,284 (collateralized by U.S. Government obligations: total market value $19,545,765) (B) 19,161 19,161 Paribas 1.775% dated 05/31/02, matures 06/03/02, repurchase price $18,764,225 (collateralized by U.S. Government obligations: total market value $19,137,277) (B) 18,761 18,761 UBS Warburg 1.785% dated 05/31/02, matures 06/03/02, repurchase price $64,443,504 (collateralized by U.S. Government obligations: total market value $65,725,950) (B) 64,433 64,433 ---------- Total Repurchase Agreements (Cost $216,077) 216,077 ---------- Total Investments (104.9%) (Cost $1,266,340) $1,266,340 ---------- - -------------------------------------------------------------------------------- VALUE (000) - -------------------------------------------------------------------------------- OTHER ASSETS AND LIABILITIES, NET (-4.9%) Investment Advisory Fee Payable $ (557) Administration Fee Payable (68) Custodian Fee Payable (5) Distribution Fee Payable (24) Other Assets and Liabilities (57,923) ---------- Total Other Assets and Liabilities, Net: (58,577) ---------- NET ASSETS: Portfolio Shares of Trust Class (unlimited authorization -- no par value) based on 997,770,039 outstanding shares of beneficial interest 997,747 Portfolio Shares of Investor Class (unlimited authorization -- no par value) based on 210,008,484 outstanding shares of beneficial interest 210,031 Accumulated net realized loss on investments (15) ---------- Total Net Assets (100.0%) $1,207,763 ========== Net Asset Value, Offering and Redemption Price Per Share -- Trust Class $ 1.00 ========== Net Asset Value, Offering and Redemption Price Per Share -- Investor Class $ 1.00 ========== THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS. FOR DESCRIPTIONS OF ABBREVIATIONS, PLEASE SEE PAGE 33. 25 STATEMENT OF NET ASSETS - -------------------------------------------------------------------------------- STI CLASSIC FUNDS MAY 31, 2002 U.S. TREASURY MONEY MARKET FUND - -------------------------------------------------------------------------------- SHARES/FACE AMOUNT (000) VALUE (000) - -------------------------------------------------------------------------------- U.S. TREASURY OBLIGATIONS (15.7%) U.S. Treasury Notes 5.625%, 11/30/02 $ 95,000 $ 96,546 5.500%, 02/28/03 10,000 10,230 4.625%, 02/28/03 10,000 10,170 4.250%, 03/31/03 20,000 20,311 ---------- Total U.S. Treasury Obligations (Cost $137,257) 137,257 ---------- CASH EQUIVALENTS (9.2%) AIM Institutional Treasury Fund 40,000,000 40,000 Dreyfus Treasury Prime Cash Management 40,000,000 40,000 ---------- Total Cash Equivalents (Cost $80,000) 80,000 ---------- REPURCHASE AGREEMENTS (71.8%) Bear Stearns 1.715% dated 05/31/02, matures 06/03/02, repurchase price $40,037,497 (collateralized by U.S. Treasury obligations: total market value $41,275,273) (B) $ 40,032 40,032 Deutsche Bank 1.735% dated 05/31/02, matures 06/03/02, repurchase price $41,794,207 (collateralized by U.S. Treasury obligation: total market value $42,624,283) (B) 41,788 41,788 Dresdner 1.705% dated 05/31/02, matures 06/03/02, repurchase price $203,426,352 (collateralized by U.S. Treasury obligations: total market value $208,494,101) (B) 203,397 203,397 - -------------------------------------------------------------------------------- FACE AMOUNT (000) VALUE (000) - -------------------------------------------------------------------------------- REPURCHASE AGREEMENTS -- CONTINUED JP Morgan Chase 1.725% dated 05/31/02, matures 06/03/02, repurchase price $182,471,724 (collateralized by U.S. Treasury Bonds: total market value $186,097,373) (B) $182,446 $ 182,446 Lehman Brothers 1.715% dated 05/31/02, matures 06/03/02, repurchase price $41,077,597 (collateralized by U.S. Treasury obligation: total market value $41,894,173) (B) 41,072 41,072 Paribas 1.725% dated 05/31/02, matures 06/03/02, repurchase price $42,320,773 (collateralized by U.S. Treasury Bill: total market value $43,181,594) (B) 42,315 42,315 Salomon Smith Barney 1.715% dated 05/31/02, matures 06/03/02, repurchase price $41,686,055 (collateralized by U.S. Treasury Note: total market value $42,537,413) (B) 41,680 41,680 UBS Warburg 1.725% dated 05/31/02, matures 06/03/02, repurchase price $33,170,383 (collateralized by U.S. Treasury obligations and cash: total market value $33,789,809) (B) 33,165 33,165 ---------- Total Repurchase Agreements (Cost $625,895) 625,895 ---------- 26 - -------------------------------------------------------------------------------- - -------------------------------------------------------------------------------- VALUE (000) - -------------------------------------------------------------------------------- Total Investments (96.7%) (Cost $843,152) $ 843,152 ---------- OTHER ASSETS AND LIABILITIES, NET (3.3%) Investment Advisory Fee Payable (418) Administration Fee Payable (51) Custodian Fee Payable (4) Other Assets and Liabilities 29,267 ---------- Total Other Assets and Liabilities, Net: 28,794 ---------- NET ASSETS: Portfolio Shares of Trust Class (unlimited authorization -- no par value) based on 871,644,023 outstanding shares of beneficial interest 871,644 Distributions in excess of net investment income (18) Accumulated net realized gain on investments 320 ---------- Total Net Assets (100.0%) $ 871,946 ========== Net Asset Value, Offering and Redemption Price Per Share -- Trust Class $1.00 ========== THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS. FOR DESCRIPTIONS OF ABBREVIATIONS, PLEASE SEE PAGE 33. 27 STATEMENT OF NET ASSETS - -------------------------------------------------------------------------------- STI CLASSIC FUNDS MAY 31, 2002 VIRGINIA TAX-FREE MONEY MARKET FUND - -------------------------------------------------------------------------------- FACE AMOUNT (000) VALUE (000) - -------------------------------------------------------------------------------- MUNICIPAL BONDS (96.7%) VIRGINIA (96.7%) Albemarle County, Industrial Development Authority, Eldercare Gardens Project, RB (C) (D) (E) 1.450%, 12/01/05 $ 2,445 $ 2,445 Albemarle County, Industrial Development Authority, University of Virginia Health Services Project, RB (C) (D) (E) 1.400%, 10/01/22 6,520 6,520 Alexandria, Industrial Development Authority, Alexandria County Day School, RB (C) (D) (E) 1.450%, 06/01/25 4,500 4,500 Alexandria, Industrial Development Authority, American Red Cross Project, RB (C) (D) (E) 1.450%, 01/01/09 3,320 3,320 Alexandria, Industrial Development Authority, Association For Supervision & Currency Project, RB (C) (D) (E) 1.400%, 07/01/23 1,595 1,595 Alexandria, Industrial Development Authority, Pooled Loan Program, Sub-Ser A, RB (C) (D) (E) 1.450%, 07/01/26 1,220 1,220 Alexandria, Redevelopment & Housing Authority, Multi- Family Housing Project, Ser PT 1251, RB (C) (D) 1.620%, 12/01/29 3,000 3,000 - -------------------------------------------------------------------------------- FACE AMOUNT (000) VALUE (000) - -------------------------------------------------------------------------------- VIRGINIA -- CONTINUED Amelia County, Industrial Development Authority, Chambers Waste Systems Project, RB, AMT (C) (D) (E) 1.500%, 07/01/07 $ 750 $ 750 Arlington County, Ballston Public Parking Project, RB (C) (D) (E) 1.450%, 08/01/17 7,450 7,450 Arlington County, Industrial Development Authority, Multi- Family Housing Authority, Arna Valley View Apartments Project, RB, AMT (C) (D) (E) 1.550%, 08/01/32 1,350 1,350 Ashland, Industrial Development Authority, Health & Community Services Facilities Authority, YMCA Greater Richmond Project, Ser A, RB (C) (D) (E) 1.400%, 11/01/20 9,060 9,060 Ashland, Industrial Development Authority, Interflex Group Project, RB, AMT (C) (D) (E) 1.550%, 07/01/19 6,000 6,000 Chesapeake Bay, Bridge & Tunnel Community District Authority, General Resolution Project, RB, MBIA (C) (D) 1.500%, 07/01/25 6,755 6,755 Chesterfield County, Industrial Development Authority, Allied- Signal Project, RB (C) (D) 1.800%, 08/01/09 3,000 3,000 28 - -------------------------------------------------------------------------------- - -------------------------------------------------------------------------------- FACE AMOUNT (000) VALUE (000) - -------------------------------------------------------------------------------- VIRGINIA -- CONTINUED Clark County, Industrial Development Authority, Winchester Medical Center Project, RB, FSA (C) (D) 1.550%, 01/01/30 $10,000 $ 10,000 Commonwealth of Virginia, Ser 1994, GO (C) (D) 1.500%, 06/01/21 5,000 5,000 Culpeper, Industrial Development Authority, Residential Care Facility, Virginia Baptist Homes, RB (C) (D) (E) 1.400%, 08/01/30 9,990 9,990 Fairfax County, Economic Development Authority, Cable Access Recovery, Ser A, RB (C) (D) (E) 1.500%, 05/01/25 1,385 1,385 Fairfax County, Economic Development Authority, Flint Hill School Project, RB (C) (D) (E) 1.550%, 09/01/21 4,985 4,985 Fairfax County, Industrial Development Authority, Fairfax Hospital Project, Ser A, RB (C) (D) 1.240%, 10/01/25 6,025 6,025 Fairfax County, Industrial Development Authority, Innovations Health Systems, RB (C) (D) 1.240%, 01/01/30 2,000 2,000 Fairfax County, Industrial Development Authority, Inova Services Project, Ser A, RB (C) (D) 1.240%, 01/15/22 2,000 2,000 - -------------------------------------------------------------------------------- FACE AMOUNT (000) VALUE (000) - -------------------------------------------------------------------------------- VIRGINIA -- CONTINUED Fairfax County, Ser 392, COP (C) (D) 1.450%, 04/15/32 $14,475 $ 14,475 Fairfax County, Water Authority, Municipal Trade Receipts Project, RB (C) (D) 1.450%, 04/01/30 7,850 7,850 Greenville County, Industrial Development Authority, Blue Ridge School, RB (C) (D) (E) 1.500%, 06/01/26 3,000 3,000 Hampton, Public Improvements, Ser PA 876, RB (C) (D) 1.470%, 01/15/13 6,500 6,500 Hampton, Redevelopment & Housing Authority, Multi- Family Housing, Avalon At Hampton Inn Project, Ser A, RB (C) (D) (E) 1.400%, 06/15/26 2,750 2,750 Hampton, Redevelopment & Housing Authority, Multi- Family Housing, Avalon Pointe Project, RB, AMT, FNMA (C) (D) 1.400%, 06/15/26 2,700 2,700 Hanover County, Industrial Development Authority, Covenant Woods Project, RB (C) (D) (E) 1.500%, 07/01/29 15,680 15,680 Henrico County, Industrial Development Authority, Health Facilities, Hermitage Project, RB (C) (D) (E) 1.450%, 08/01/23 5,900 5,900 29 STATEMENT OF NET ASSETS - -------------------------------------------------------------------------------- STI CLASSIC FUNDS MAY 31, 2002 VIRGINIA TAX-FREE MONEY MARKET FUND--CONTINUED - -------------------------------------------------------------------------------- FACE AMOUNT (000) VALUE (000) - -------------------------------------------------------------------------------- VIRGINIA -- CONTINUED Louisa County, Industrial Development Authority, Pooled Financing Project, RB (C) (D) (E) 1.450%, 01/01/20 $ 2,305 $ 2,305 Lynchburg, Industrial Development Authority, Aerofin Project, RB, AMT (C) (D) (E) 1.600%, 03/01/29 2,075 2,075 Lynchburg, Industrial Development Authority, Educational Facilities, Randolph Macon Project, RB (C) (D) (E) 1.400%, 09/01/23 8,000 8,000 Newport News, Redevelopment & Housing Authority, Ser PT 1374, RB (C) (D) 1.470%, 07/01/25 4,470 4,470 Norfolk, GO, FGIC 5.000%, 07/01/02 1,040 1,042 Norfolk, Industrial Development Authority, Children's Hospital Facilities Project, RB (C) (D) (E) 1.450%, 06/01/20 15,300 15,300 Norfolk, Redevelopment & Housing Authority, East Ocean View Property Project, RB (C) (D) (E) 1.500%, 09/01/09 6,345 6,345 Norfolk, Ser 944601, GO (C) (D) 1.500%, 06/01/05 10,000 10,000 - -------------------------------------------------------------------------------- FACE AMOUNT (000) VALUE (000) - -------------------------------------------------------------------------------- VIRGINIA -- CONTINUED Peninsula, Ports Authority, Dominion Term Project, Ser C, RB (C) (D) (E) 1.600%, 07/01/16 $11,805 $ 11,805 Portsmouth, Industrial Development Authority, Fairwood Homes Project, Ser A, RB (C) (D) (E) 1.400%, 11/01/27 2,805 2,805 Prince Edward County, Industrial Development Authority, Eldercare of Virginia Project, RB (C) (D) (E) 1.450%, 08/01/05 2,050 2,050 Prince George County, Industrial Development Authority, Metropolitan Span Project, RB, AMT (C) (D) (E) 1.700%, 09/01/19 3,900 3,900 Richmond, Public Utilities Authority, Ser A, RB (C) (D) 1.500%, 06/30/03 10,000 10,000 Richmond, Redevelopment & Multi-Family Housing Authority, Belmont Apartments Project, RB (C) (D) (E) 1.400%, 04/01/07 1,920 1,920 Richmond, Redevelopment & Multi-Family Housing Authority, Ser PT-1022, RB (C) (D) 1.580%, 11/01/29 5,908 5,908 30 - -------------------------------------------------------------------------------- - -------------------------------------------------------------------------------- FACE AMOUNT (000) VALUE (000) - -------------------------------------------------------------------------------- VIRGINIA -- CONTINUED Roanoke, Industrial Development Authority, Hollins University Project, RB (C) (D) (E) 1.400%, 05/01/15 $ 5,500 $ 5,500 Roanoke, Redevelopment & Multi-Family Housing Authority, Stepping Stone Apartments Project, RB, AMT (C) (D) 1.650%, 04/01/40 2,000 2,000 Rockingham County, Industrial Development Authority, Sunnyside Presbyterian Project, RB (C) (D) (E) 1.450%, 12/31/26 7,000 7,000 Stafford County, GO 3.000%, 01/01/03 765 768 Staunton, Industrial Development Authority, Diebold-Staunton Project, RB (C) (D) (E) 1.500%, 04/01/17 530 530 Suffolk, Industrial Development Authority, Lake Prince Center Project, RB (C) (D) (E) 1.550%, 10/01/05 6,000 6,000 Virginia Beach, Development & Multi-Family Housing Authority, Ser PT 1213, RB (C) (D) 1.670%, 10/15/41 1,000 1,000 Virginia Beach, Development Authority, Westminster- Canterbury Project, Ser B, RB (C) (D) (E) 1.400%, 11/01/06 1,200 1,200 - -------------------------------------------------------------------------------- FACE AMOUNT (000) VALUE (000) - -------------------------------------------------------------------------------- VIRGINIA -- CONTINUED Virginia Beach, Industrial Development Authority, Ocean Ranch Project, RB (C) (D) (E) 1.500%, 07/01/17 $ 1,835 $ 1,835 Virginia Beach, Public Improvement, GO 3.000%, 06/01/02 2,425 2,425 Virginia State, Commonwealth Transportation Board Authority, Ser SG 134, RB (C) (D) 1.470%, 05/15/22 2,600 2,600 Virginia State, GO 5.000%, 06/01/02 500 500 Virginia State, Housing Development Authority, Commonwealth Merlots Project, Ser CC, RB (C) (D) (E) 1.550%, 07/01/28 175 175 Virginia State, Housing Development Authority, Ser PA 818R, RB (C) (D) 1.500%, 07/01/18 2,900 2,900 Virginia State, Port Authority, Ser SG 111, RB (C) (D) 1.550%, 07/01/24 14,705 14,705 Virginia State, Public Building Authority, Ser 131, RB, MBIA (C) (D) 1.480%, 08/01/19 1,485 1,485 Virginia State, Public Building Authority, Ser II-R-84, RB (C) (D) 1.500%, 08/01/03 2,750 2,750 31 STATEMENT OF NET ASSETS - -------------------------------------------------------------------------------- STI CLASSIC FUNDS MAY 31, 2002 VIRGINIA TAX-FREE MONEY MARKET FUND--CONCLUDED - -------------------------------------------------------------------------------- FACE AMOUNT (000) VALUE (000) - -------------------------------------------------------------------------------- VIRGINIA -- CONTINUED Virginia State, Public School Authority, Improvements Project, Ser 11, RB (C) (D) 1.500%, 08/01/16 $11,000 $ 11,000 Virginia State, Public School Authority, Ser 431, RB (C) (D) 1.440%, 08/01/06 2,000 2,000 Virginia State, Resource Authority, Clean Water, Ser PA 790, RB (C) (D) 1.470%, 10/01/16 4,300 4,300 Virginia State, Small Business Financing Authority, Clark County Industrial Development Project, RB, AMT (C) (D) (E) 1.650%, 07/01/25 1,865 1,865 Virginia State, Transportation Board Authority, Eagle Trust, Ser 994601, RB (C) (D) 1.500%, 05/15/19 10,560 10,560 Williamsburg, Industrial Development Authority, Colonial Williamsburg Museum Foundation Project, RB (C) (D) (E) 2.000%, 12/01/18 600 600 ---------- Total Municipal Bonds (Cost $328,828) 328,828 ---------- - -------------------------------------------------------------------------------- SHARES VALUE (000) - -------------------------------------------------------------------------------- CASH EQUIVALENT (3.1%) Federated Virginia Municipal Cash Trust 10,454,025 $ 10,454 ---------- Total Cash Equivalent (Cost $10,454) 10,454 ---------- Total Investments (99.8%) (Cost $339,282) 339,282 ---------- OTHER ASSETS AND LIABILITIES, NET (0.2%) Investment Advisory Fee Payable (109) Administration Fee Payable (19) Custodian Fee Payable (1) Distribution Fee Payable (14) Other Assets and Liabilities 683 ---------- Total Other Assets and Liabilities, Net: 540 ---------- NET ASSETS: Portfolio Shares of Trust Class (unlimited authorization -- no par value) based on 240,699,652 outstanding shares of beneficial interest 240,693 Portfolio Shares of Investor Class (unlimited authorization -- no par value) based on 99,120,383 outstanding shares of beneficial interest 99,127 Accumulated net realized gain on investments 2 ---------- Total Net Assets (100.0%) $ 339,822 ========== Net Asset Value, Offering and Redemption Price Per Share -- Trust Class $ 1.00 ========== Net Asset Value, Offering and Redemption Price Per Share -- Investor Class $ 1.00 ========== THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS. FOR DESCRIPTIONS OF ABBREVIATIONS, PLEASE SEE PAGE 33. 32 - -------------------------------------------------------------------------------- KEY TO ABBREVIATIONS USED IN THE STATEMENTS OF NET ASSETS AMBAC Security insured by the American Municipal Bond Assurance Corporation AMT Alternative Minimum Tax Cl Class COP Certificate of Participation FFCB Federal Farm Credit Bank FGIC Security insured by the Financial Guaranty Insurance Company FHLB Federal Home Loan Bank FHLMC Federal Home Loan Mortgage Corporation FNMA Federal National Mortgage Association FSA Security insured by Financial Securities Assurance GO General Obligation MBIA Security insured by the Municipal Bond Insurance Association MTN Medium Term Note RB Revenue Bond Ser Series SLMA Student Loan Marketing Association (A) Private Placement Security (B) Tri-Party Repurchase Agreement (C) Adjustable Rate Security. The rate reported on the Statement of Net Assets is the rate in effect on May 31, 2002. (D) Optional tender and interest rate reset features give these securities a shorter effective maturity date. (E) Securities are held in connection with a letter of credit issued by a major bank. (F) Zero Coupon Security. (G) Rate shown is the discount yield at date of purchase. 33 STATEMENTS OF OPERATIONS (000) - -------------------------------------------------------------------------------- STI CLASSIC FUNDS FOR THE YEAR ENDED MAY 31, 2002
TAX-EXEMPT U.S. GOVERNMENT VIRGINIA PRIME QUALITY MONEY SECURITIES U.S. TREASURY TAX-FREE MONEY MARKET MARKET MONEY MARKET MONEY MONEY MARKET FUND FUND FUND MARKET FUND FUND ---------- ----------- -------------- ------------- ------------ 06/01/01- 06/01/01- 06/01/01- 06/01/01- 06/01/01- 05/31/02 05/31/02 05/31/02 05/31/02 05/31/02 ---------- ----------- -------------- ------------- ------------ Interest Income .............................. $166,478 $22,922 $30,090 $21,729 $6,763 -------- ------- ------- ------- ------ Expenses: Investment Advisory Fees .................. 37,714 6,510 6,912 5,537 1,399 Administrator Fees ........................ 3,999 816 733 587 241 Transfer Agent Fees -- Trust Shares ....... 25 16 16 16 16 Transfer Agent Fees -- Investor Shares .... 30 14 16 -- 12 Transfer Agent Fees -- Flex Shares ........ 17 -- -- -- -- Transfer Agent Out of Pocket Expenses and Shareholder Servicing Fees ....... 325 67 60 40 19 Printing Expenses ......................... 239 46 46 34 15 Custody Fees .............................. 132 27 24 19 8 Professional Fees ......................... 225 45 43 34 13 Trustee Fees .............................. 53 11 10 8 3 Registration Fees ......................... 174 87 93 25 11 Distribution Fees -- Investor Shares ...... 3,842 336 364 -- 399 Distribution Fees -- Flex Shares .......... 63 -- -- -- -- Other Fees ................................ 136 25 8 -- 5 -------- ------- ------- ------- ------ Total Expenses ............................ 46,974 8,000 8,325 6,300 2,141 -------- ------- ------- ------- ------ Less: Investment Advisory Fees Waived ......................... (6,382) (1,172) (957) (766) -- Distribution Fees Waived -- Investor Shares ..................... (435) (72) (72) -- (232) Distribution Fees Waived -- Flex Shares ......................... (4) -- -- -- -- -------- ------- ------- ------- ------ Net Expenses .............................. 40,153 6,756 7,296 5,534 1,909 -------- ------- ------- ------- ------ Net Investment Income ........................ 126,325 16,166 22,794 16,195 4,854 -------- ------- ------- ------- ------ Net Realized Gain on Securities Sold ........................... 312 500 -- 320 82 -------- ------- ------- ------- ------ Net Increase in Net Assets from Operations ........................... $126,637 $16,666 $22,794 $16,515 $4,936 ======== ======= ======= ======= ======
Amounts designated as "--" are either $0 or round to $0. THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS. 34 STATEMENTS OF CHANGES IN NET ASSETS (000) - -------------------------------------------------------------------------------- STI CLASSIC FUNDS FOR THE YEARS ENDED MAY 31,
U.S. GOVERNMENT PRIME QUALITY TAX-EXEMPT SECURITIES MONEY MARKET FUND MONEY MARKET FUND MONEY MARKET 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 --------- --------- --------- --------- --------- --------- Operations: Net Investment Income .................... $ 126,325 $ 286,100 $ 16,166 $ 35,406 $ 22,794 $ 38,210 Net Realized Gain on Investments.......... 312 775 500 42 -- 12 ----------- ----------- ----------- ----------- ---------- ---------- Increase in Net Assets from Operations ........................ 126,637 286,875 16,666 35,448 22,794 38,222 ----------- ----------- ----------- ----------- ---------- ---------- Distributions to Shareholders: Net Investment Income: Trust Shares ........................... (86,465) (193,862) (13,358) (29,616) (18,481) (33,127) Investor Shares ........................ (40,213) (92,112) (2,808) (5,784) (4,313) (5,383) Flex Shares............................. (87) (147) -- -- -- -- ----------- ----------- ----------- ----------- ---------- ---------- Capital Gains: Trust Shares............................ -- -- (309) -- -- -- Investor Shares......................... -- -- (78) -- -- -- ----------- ----------- ----------- ----------- ---------- ---------- Total Distributions ..................... (126,765) (286,121) (16,553) (35,400) (22,794) (38,510) ----------- ----------- ----------- ----------- ---------- ---------- Capital Transactions (1): Trust Shares: Proceeds from Shares Issued ............ 4,333,496 5,592,971 1,120,651 1,434,739 1,102,305 1,008,862 Reinvestment of Cash Distributions ..... 6,234 11,579 -- -- 2,771 6,639 Cost of Shares Redeemed ................ (4,160,892) (5,187,969) (1,293,278) (1,110,272) (912,571) (678,561) ----------- ----------- ----------- ----------- ---------- ---------- Increase (Decrease) in Net Assets From Trust Share Transactions ............... 178,838 416,581 (172,627) 324,467 192,505 336,940 ----------- ----------- ----------- ----------- ---------- ---------- Investor Shares: Proceeds from Shares Issued ............ 1,188,331 1,478,536 184,704 317,900 598,096 327,362 Reinvestment of Cash Distributions ..... 40,129 91,917 2,883 5,768 4,249 5,304 Cost of Shares Redeemed ................ (1,268,613) (955,990) (226,454) (192,285) (550,459) (253,825) ----------- ----------- ----------- ----------- ---------- ---------- Increase (Decrease) in Net Assets From Investor Share Transactions ........ (40,153) 614,463 (38,867) 131,383 51,886 78,841 ----------- ----------- ----------- ----------- ---------- ---------- Flex Shares: Proceeds from Shares Issued ............ 17,534 14,830 -- -- -- -- Reinvestment of Cash Distributions ..... 80 127 -- -- -- -- Cost of Shares Redeemed ................ (9,364) (14,351) -- -- -- -- ----------- ----------- ----------- ----------- ---------- ---------- Increase in Net Assets From Flex Share Transactions ................ 8,250 606 -- -- -- -- ----------- ----------- ----------- ----------- ---------- ---------- Increase (Decrease) in Net Assets From Share Transactions ................ 146,935 1,031,650 (211,494) 455,850 244,391 415,781 ----------- ----------- ----------- ----------- ---------- ---------- Total Increase (Decrease) in Net Assets.......................... 146,807 1,032,404 (211,381) 455,898 244,391 415,493 ----------- ----------- ----------- ----------- ---------- ---------- Net Assets: Beginning of Period ...................... 5,659,731 4,627,327 1,337,256 881,358 963,372 547,879 ----------- ----------- ----------- ----------- ---------- ---------- End of Period ............................ $5,806,538 $5,659,731 $1,125,875 $ 1,337,256 $1,207,763 $ 963,372 =========== =========== =========== =========== ========== ==========
U.S. TREASURY VIRGINIA TAX-FREE MONEY MARKET FUND MONEY MARKET 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 .................... $ 16,195 $ 40,758 $ 4,854 $ 9,400 Net Realized Gain on Investments.......... 320 1 82 -- ----------- ---------- --------- --------- Increase in Net Assets from Operations ........................ 16,515 40,759 4,936 9,400 ----------- ---------- --------- --------- Distributions to Shareholders: Net Investment Income: Trust Shares ........................... (16,214) (40,755) (3,635) (7,214) Investor Shares ........................ -- -- (1,219) (2,175) Flex Shares............................. -- -- -- -- ----------- ---------- --------- --------- Capital Gains: Trust Shares............................ -- -- (36) -- Investor Shares......................... -- -- (17) -- ----------- ---------- --------- --------- Total Distributions ..................... (16,214) (40,755) (4,907) (9,389) ----------- ---------- --------- --------- Capital Transactions (1): Trust Shares: Proceeds from Shares Issued ............ 1,525,826 1,473,422 415,687 341,429 Reinvestment of Cash Distributions ..... 8 33 133 173 Cost of Shares Redeemed ................ (1,387,957) (1,462,968) (401,345) (360,665) ----------- ---------- --------- --------- Increase (Decrease) in Net Assets From Trust Share Transactions ............... 137,877 10,487 14,475 (19,063) ----------- ---------- --------- --------- Investor Shares: Proceeds from Shares Issued ............ -- -- 136,756 136,491 Reinvestment of Cash Distributions ..... -- -- 1,236 2,175 Cost of Shares Redeemed ................ -- -- (131,866) (108,543) ----------- ---------- --------- --------- Increase (Decrease) in Net Assets From Investor Share Transactions ........ -- -- 6,126 30,123 ----------- ---------- --------- --------- Flex Shares: Proceeds from Shares Issued ............ -- -- -- -- Reinvestment of Cash Distributions ..... -- -- -- -- Cost of Shares Redeemed ................ -- -- -- -- ----------- ---------- --------- --------- Increase in Net Assets From Flex Share Transactions ................ -- -- -- -- ----------- ---------- --------- --------- Increase (Decrease) in Net Assets From Share Transactions ................ 137,877 10,487 20,601 11,060 ----------- ---------- --------- --------- Total Increase (Decrease) in Net Assets.......................... 138,178 10,491 20,630 11,071 ----------- ---------- --------- --------- Net Assets: Beginning of Period ...................... 733,768 723,277 319,192 308,121 ----------- ---------- --------- --------- End of Period ............................ $ 871,946 $ 733,768 $ 339,822 $ 319,192 =========== ========== ========= =========
(1) For Capital Share Transactions see footnote 7 in the notes to financial statements. Amounts designated as "--" are either $0 or round to $0. THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS. 35 FINANCIAL HIGHLIGHTS - -------------------------------------------------------------------------------- STI CLASSIC FUNDS FOR THE PERIODS ENDED MAY 31, FOR A SHARE OUTSTANDING THROUGHOUT THE PERIOD
NET NET ASSET NET ASSET VALUE INVESTMENT DISTRIBUTIONS FROM VALUE END BEGINNING OF PERIOD INCOME NET INVESTMENT INCOME OF PERIOD ------------------- ---------- --------------------- ----------- PRIME QUALITY MONEY MARKET FUND Trust Shares 2002 $1.00 $0.02 $(0.02) $1.00 2001 1.00 0.06 (0.06) 1.00 2000 1.00 0.05 (0.05) 1.00 1999 1.00 0.05 (0.05) 1.00 1998 1.00 0.05 (0.05) 1.00 Investor Shares 2002 $1.00 $0.02 $(0.02) $1.00 2001 1.00 0.05 (0.05) 1.00 2000 1.00 0.05 (0.05) 1.00 1999 1.00 0.05 (0.05) 1.00 1998 1.00 0.05 (0.05) 1.00 Flex Shares 2002 $1.00 $0.01 $(0.01) $1.00 2001 1.00 0.05 (0.05) 1.00 2000 (A) 1.00 0.03 (0.03) 1.00 TAX-EXEMPT MONEY MARKET FUND Trust Shares 2002 $1.00 $0.01 $(0.01) $1.00 2001 1.00 0.03 (0.03) 1.00 2000 1.00 0.03 (0.03) 1.00 1999 1.00 0.03 (0.03) 1.00 1998 1.00 0.03 (0.03) 1.00 Investor Shares 2002 $1.00 $0.01 $(0.01) $1.00 2001 1.00 0.03 (0.03) 1.00 2000 1.00 0.03 (0.03) 1.00 1999 1.00 0.03 (0.03) 1.00 1998 1.00 0.03 (0.03) 1.00 + Returns are for the period indicated and have not been annualized. The performance in the above table does not reflect the deduction of taxes the shareholder would pay on fund distributions or redemption of fund shares. * Annualized. (A) Flex shares were offered beginning October 4, 1999.
36 - --------------------------------------------------------------------------------
RATIO OF RATIO OF NET INVESTMENT RATIO OF EXPENSES TO INCOME TO NET ASSETS RATIO OF NET INVESTMENT AVERAGE NET ASSETS AVERAGE NET ASSETS TOTAL END OF EXPENSES TO INCOME TO (EXCLUDING WAIVERS (EXCLUDING WAIVERS RETURN+ PERIOD (000) AVERAGE NET ASSETS AVERAGE NET ASSETS AND REIMBURSEMENTS) AND REIMBURSEMENTS) -------- ------------ ------------------ ------------------ ------------------ ------------------- 2.29% $3,907,203 0.63% 2.22% 0.74% 2.11% 5.75 3,728,371 0.63 5.57 0.75 5.45 5.20 3,311,229 0.60 5.06 0.75 4.91 4.83 3,903,232 0.60 4.69 0.77 4.52 5.22 1,880,229 0.59 5.10 0.77 4.92 2.11% $1,887,033 0.81% 2.09% 0.94% 1.96% 5.57 1,927,309 0.80 5.36 0.95 5.21 5.02 1,312,653 0.77 4.94 0.95 4.76 4.66 918,100 0.77 4.52 0.97 4.32 5.04 411,821 0.76 4.93 0.98 4.71 1.36% $ 12,302 1.54% 1.04% 1.70% 0.88% 4.75 4,051 1.53 4.54 1.92 4.15 2.93 3,445 1.50* 4.46* 1.99* 3.97* 1.38% $ 907,827 0.55% 1.39% 0.65% 1.29% 3.47 1,080,362 0.54 3.40 0.65 3.29 3.19 755,858 0.52 3.16 0.66 3.02 2.81 641,640 0.52 2.75 0.66 2.61 3.21 448,023 0.51 3.14 0.67 2.98 1.26% $ 218,048 0.67% 1.25% 0.80% 1.12% 3.35 256,894 0.67 3.22 0.80 3.09 3.07 125,500 0.64 3.01 0.82 2.83 2.69 128,854 0.64 2.66 0.82 2.48 3.09 134,538 0.62 3.04 0.83 2.83
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS. 37 FINANCIAL HIGHLIGHTS (concluded) STI CLASSIC FUNDS FOR THE PERIODS ENDED MAY 31, (UNLESS OTHERWISE NOTED) FOR A SHARE OUTSTANDING THROUGHOUT THE PERIOD
NET NET ASSET NET ASSET VALUE INVESTMENT DISTRIBUTIONS FROM VALUE END BEGINNING OF PERIOD INCOME NET INVESTMENT INCOME OF PERIOD ------------------- ---------- --------------------- --------- U.S. GOVERNMENT SECURITIES MONEY MARKET FUND Trust Shares 2002 $1.00 $0.02 $(0.02) $1.00 2001 1.00 0.05 (0.05) 1.00 2000 1.00 0.05 (0.05) 1.00 1999 1.00 0.04 (0.04) 1.00 1998 1.00 0.05 (0.05) 1.00 Investor Shares 2002 $1.00 $0.02 $(0.02) $1.00 2001 1.00 0.05 (0.05) 1.00 2000 1.00 0.05 (0.05) 1.00 1999 1.00 0.04 (0.04) 1.00 1998 1.00 0.05 (0.05) 1.00 U.S. TREASURY MONEY MARKET FUND (A) Trust Shares 2002 $1.00 $0.02 $(0.02) $1.00 2001 1.00 0.05 (0.05) 1.00 2000 1.00 0.05 (0.05) 1.00 1999* 1.00 0.02 (0.02) 1.00 For the Year Ended November 30: 1998 1.00 0.05 (0.05) 1.00 1997 1.00 0.05 (0.05) 1.00 VIRGINIA TAX-FREE MONEY MARKET FUND (B) Trust Shares 2002 $1.00 $0.01 $(0.01) $1.00 2001 1.00 0.03 (0.03) 1.00 2000 1.00 0.03 (0.03) 1.00 1999* 1.00 0.01 (0.01) 1.00 For the Year Ended November 30: 1998 1.00 0.03 (0.03) 1.00 1997 1.00 0.03 (0.03) 1.00 Investor Shares 2002 $1.00 $0.01 $(0.01) $1.00 2001 1.00 0.03 (0.03) 1.00 2000 1.00 0.03 (0.03) 1.00 1999* 1.00 0.01 (0.01) 1.00 For the Year Ended November 30: 1998 1.00 0.03 (0.03) 1.00 1997 1.00 0.03 (0.03) 1.00 + Returns are for the period indicated and have not been annualized. (The performance in the above table does not reflect the deduction of taxes the shareholder would pay on fund distributions or redemption of fund shares.) * For the period December 1, 1998 to May 31, 1999. All ratios for the period have been annualized. (A) On May 24, 1999, the CrestFund U.S. Treasury Money Fund exchanged all of its assets and certain liabilities for shares of the U.S. Treasury Money Market Fund. The CrestFund U.S. Treasury Money Fund is the accounting survivor in this transaction, and as a result, its basis of accounting for assets and liabilities and its operating results for the periods prior to May 24, 1999 have been carried forward in these financial highlights. (B) On May 24, 1999, the CrestFund Tax-Free Money Fund exchanged all of its assets and certain liabilities for shares of the Virginia Tax-Free Money Market Fund. The CrestFund Tax-Free Money Fund is the accounting survivor in this transaction, and as a result, its basis of accounting for assets and liabilities and its operating results for the periods prior to May 24, 1999 have been carried forward in these financial highlights.
38
RATIO OF RATIO OF NET INVESTMENT RATIO OF EXPENSES TO INCOME TO NET ASSETS RATIO OF NET INVESTMENT AVERAGE NET ASSETS AVERAGE NET ASSETS TOTAL END OF EXPENSES TO INCOME TO (EXCLUDING WAIVERS (EXCLUDING WAIVERS RETURN+ PERIOD (000) AVERAGE NET ASSETS AVERAGE NET ASSETS AND REIMBURSEMENTS) AND REIMBURSEMENTS) ------- ----------- ------------------ ------------------ ------------------- ------------------- 2.25% $ 997,759 0.66% 2.17% 0.75% 2.08% 5.56 805,285 0.65 5.29 0.75 5.19 4.86 468,568 0.63 4.80 0.74 4.69 4.57 404,459 0.63 4.47 0.76 4.34 5.04 377,490 0.62 4.92 0.78 4.76 2.11% $ 210,004 0.80% 2.02% 0.92% 1.90% 5.41 158,087 0.79 5.14 0.93 5.00 4.71 79,311 0.77 4.62 0.93 4.46 4.41 61,472 0.77 4.32 0.98 4.11 4.90 58,753 0.76 4.79 0.96 4.59 1.96% $ 871,946 0.65% 1.90% 0.74% 1.81% 5.36 733,768 0.66 5.23 0.76 5.13 4.81 723,277 0.63 4.71 0.74 4.60 2.08 760,833 0.68 4.10 0.83 3.95 4.89 699,923 0.66 4.77 0.81 4.62 4.91 632,381 0.65 4.82 0.80 4.67 1.44% $ 240,681 0.50% 1.45% 0.50% 1.45% 3.51 226,188 0.50 3.45 0.50 3.45 3.23 245,243 0.51 3.19 0.51 3.19 1.27 270,431 0.67 2.51 0.82 2.36 2.97 270,899 0.66 2.92 0.81 2.77 3.06 226,837 0.66 3.02 0.81 2.87 1.27% $ 99,141 0.67% 1.22% 0.90% 0.99% 3.35 93,004 0.66 3.28 0.91 3.03 3.07 62,878 0.67 3.17 0.73 3.11 1.27 5,955 0.67 2.52 1.06 2.13 2.96 8,851 0.67 2.92 1.07 2.52 3.05 7,634 0.68 3.42 1.08 3.02
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS. 39 NOTES TO FINANCIAL STATEMENTS - -------------------------------------------------------------------------------- STI CLASSIC 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 the E-Commerce Opportunity Fund), the International Equity Fund, the International Equity Index Fund, the Life Vision Aggressive Growth Fund, the Life Vision Growth and Income Fund, the Life Vision Moderate Growth Fund, the Mid-Cap Equity Fund, the Mid Cap Value Equity Fund, the Small Cap Growth Stock Fund, the Small Cap Value Equity Fund, the Tax Sensitive Growth Stock Fund, the Value Income Stock Fund, the Vantage Fund, (collectively the "Equity Funds"), the Florida Tax-Exempt Bond Fund, the Georgia Tax-Exempt Bond Fund, the High Income Fund, the Investment Grade Bond Fund, the Investment Grade Tax-Exempt Bond Fund, the Limited-Term Federal Mortgage Securities Fund, the Maryland Municipal Bond Fund, the Short-Term Bond Fund, the Short-Term U.S. Treasury Securities Fund, the Strategic Income Fund, the U.S. Government Securities Fund, the Virginia Intermediate Municipal Bond Fund, the Virginia Municipal Bond Fund, (collectively the "Fixed Income Funds"), the Prime Quality Money Market Fund, the Tax-Exempt Money Market Fund, the U.S. Government Securities Money Market Fund, the U.S. Treasury Money Market Fund, the Virginia Tax-Free Money Market Fund (formerly the Tax-Free Money Market Fund), (collectively the "Retail Money Market Funds" or the "Funds"), the Classic Institutional Short-Term Bond Fund, the Classic Institutional Super Short Income Plus Fund, the Classic Institutional U.S. Government Securities Super Short Income Plus Fund, 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 Funds"). The assets of each Fund are segregated, and a shareholder's interest is limited to the fund in which shares are held. Each Fund's prospectus provides a description of the Fund's investment objectives, policies and strategies. The financial statements presented herein are those of the Retail Money Market Funds. The financial statements of the Equity Funds, the Fixed Income Funds and the Institutional Funds are not presented herein, but are presented separately. 2. Significant Accounting Policies: The following is a summary of significant accounting policies followed by the Trust: SECURITY VALUATION -- Investment securities held by the Funds are stated at amortized cost, which approximates market value. Under the amortized cost method, any discount or premium is amortized ratably to the next interest readjustment date, the date that the principal owned can be recovered through demand, or the maturity date of the security and is included in interest income. FEDERAL INCOME TAXES -- It is each Fund's intention to qualify as a regulated investment company for Federal income tax purposes and distribute all of its taxable income and net capital gains. Accordingly, no provisions for Federal income taxes are required. 40 40 - -------------------------------------------------------------------------------- SECURITY TRANSACTIONS AND INVESTMENT INCOME -- Security transactions are accounted for on the date the security is purchased or sold (trade date). Interest income is recognized on an accrual basis. Costs used in determining net realized gains and losses on the sales of investment securities are those of the specific securities sold adjusted for the accretion and amortization of purchase discounts and premiums during the respective holding period. Purchase discounts and premiums on securities held by the Funds are accreted and amortized ratably to the next interest readjustment date, the date the principal owned can be recovered through demand, or the maturity date of the security and are included in interest income. REPURCHASE AGREEMENTS -- Securities pledged as collateral for repurchase agreements are held by the custodian bank until the respective agreements mature. Provisions of the repurchase agreements ensure that the market value of the collateral, including accrued interest thereon, is sufficient in the event of default of the counterparty. If the counterparty defaults and the value of the collateral declines or if the counterparty enters into an insolvency proceeding, realization of the collateral by the Funds may be delayed or limited. NET ASSET VALUE PER SHARE -- The net asset value per share of each Fund is calculated each business day, by dividing the total value of each Fund's assets, less liabilities, by the number of shares outstanding. OTHER -- Expenses that are directly related to a specific Fund are charged to that Fund. Class specific expenses, such as distributor and transfer agent fees, are borne by that class. Other operating expenses of the Trust are pro-rated to the Funds on the basis of relative net assets. Fund expenses are pro-rated to the respective classes on the basis of relative net assets. DISTRIBUTIONS TO SHAREHOLDERS -- Distributions from net investment income of each of the Funds are declared on each business day and paid to shareholders on a monthly basis. Any net realized capital gains on sales of securities are distributed to shareholders at least annually. USE OF ESTIMATES -- The preparation of the financial statements in conformity with accounting principles generally accepted in the United States requires management to make estimates and assumptions that 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 AICPAAudit and Accounting Guide, Audits of Investment Companies (the "Guide"), as required on June 1, 2001. The implementation did not have any material impact on the results of operations or financial condition of the Funds upon adoption of the provisions of the Guide. 3. Transactions with Affiliates: Certain officers of the Trust are also officers of SEI Investments Mutual Funds Services (the "Administrator"), and/or SEI Investments Distribution Co. (the "Distributor"). Such officers are paid no fees by the Trust for serving as officers of the Trust. The Trust has entered into an agreement with the Distributor to act as an agent in placing repurchase 41 NOTES TO FINANCIAL STATEMENTS (continued) - -------------------------------------------------------------------------------- STI CLASSIC FUNDS MAY 31, 2002 agreements for the Trust. For the year ended May 31, 2002, the following Funds paid the Distributor through a reduction in the yield earned by the Funds on those repurchase agreements: FEES -------- Prime Quality Money Market Fund ............... $ 65,060 U.S. Government Securities Money Market Fund .. 49,997 U.S. Treasury Money Market Fund ............... 255,796 The Trust has also entered into an agreement with SunTrust Robinson Humphrey, a division of SunTrust Capital Markets, Inc. which is a direct non-bank subsidiary of SunTrust Banks, Inc. to act as an agent in placing repurchase agreements for the Trust. For the year ended May 31, 2002, SunTrust Robinson Humphrey received fees for the following funds: FEES -------- Prime Quality Money Market Fund ............... $ 11,177 U.S. Government Securities Money Market Fund .. 81,529 U.S. Treasury Money Market Fund ............... 43,129 The Trust and the Distributor are parties to a Distribution Agreement dated November 21, 1995. 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 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". 4. Administration and Transfer Agency Servicing Agreements: The Trust and the Administrator are parties to an Administration Agreement dated May 29, 1995, as amended November 19, 1997 and March 1, 1999, under which the Administrator provides administrative services for an annual fee (expressed as a percentage of the combined average daily net assets of the Trust and STI Classic Variable Trust) of: 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. ("STS"), a wholly-owned subsidiary of SunTrust Bank, Inc., 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: FEES -------- Prime Quality Money Market Fund .............. $144,110 Tax-Exempt Money Market Fund ................ 29,400 U.S. Government Securities Money Market Fund ........................ 26,411 U.S. Treasury Money Market Fund .............. 21,158 Virginia Tax-Free Money Market Fund .......... 8,685 5. Investment Advisory and Custodian Agreements: The Trust and Trusco Capital Management, Inc. (the "Investment Adviser") have entered into advisory agreements dated June 15, 1993, December 20, 1993 and last amended as of April 8, 2002. Under terms of the agreements, the Funds are charged the following annual fees based upon average daily net assets: MAXIMUM MAXIMUM MAXIMUM INVESTOR FLEX SHARE ANNUAL SHARE DISTRIBUTION ADVISORY DISTRIBUTION AND SERVICE FEE FEE FEE ---------- ---------- ------------ Prime Quality Money Market Fund ....................... 0.65% 0.20% 0.75% Tax-Exempt Money Market Fund .. 0.55 0.15 -- U.S. Government Securities Money Market Fund ......... 0.65 0.17 -- U.S. Treasury Money Market Fund ....................... 0.65 -- -- Virginia Tax-Free Money Market Fund ....................... 0.40 0.40 -- 42 - -------------------------------------------------------------------------------- The Investment Adviser has voluntarily agreed to waive all or a portion of their fees (and to reimburse Funds' expenses) in order to limit operating expenses. Fee waivers and expense reimburse-ments are voluntary and may be terminated at any time. SunTrust Bank acts as custodian for the Funds. Fees of the Custodian are paid on the basis of the net assets and transaction fees of the Funds. The Custodian plays no role in determining the investment policies of the Trust or which securities are to be purchased or sold in the Funds. 6. 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 the classification of short-term capital gains and ordinary income for tax purposes, have been reclassified to/from the following accounts: UNDISTRIBUTED ACCUMULATED NET INVESTMENT REALIZED INCOME/(LOSS) GAIN/(LOSS) (000) (000) ------------- ---------- Prime Quality Money Market Fund $393 $(393) U.S. Treasury Money Market Fund 1 (1) The tax character of dividends and distributions paid during the years ended May 31, 2002 and 2001 were as follows (000):
ORDINARY INCOME LONG-TERM CAPITAL GAIN TOTALS 2002 2001 2002 2001 2002 2001 -------- -------- -------- -------- -------- -------- Prime Quality Money Market Fund $138,542 $289,323 $-- $-- $138,542 $289,323 Tax Exempt Money Market Fund 11 1 376 -- 387 1 U.S. Government Securities Money Market Fund 24,662 37,725 -- -- 24,662 37,725 U.S. Treasury Money Market Fund 17,475 41,891 -- -- 17,475 41,891 Virginia Tax Free Money Market Fund 52 1 1 -- 53 1
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 ORDINARY LONG-TERM CAPITAL INCOME CAPITAL GAIN LOSS CARRYOVERS ------------ ------------ --------------- Prime Quality Money Market Fund $245 $ 2 $-- Tax Exempt Money Market Fund 115 5 -- U.S. Government Securities Money Market Fund -- -- (15) U.S. Treasury Money Market Fund 302 -- -- Virginia Tax Free Money Market Fund -- 2 -- Amounts designated as "--" are either $0 or have been rounded to $0 The capital loss carryover in the U.S. Government Securities Money Market Fund expires in 2009. 43 NOTES TO FINANCIAL STATEMENTS (concluded) - -------------------------------------------------------------------------------- STI CLASSIC FUNDS MAY 31, 2002 7. Capital Share Transactions:
U.S. GOVERNMENT PRIME QUALITY TAX-EXEMPT SECURITIES MONEY MARKET FUND MONEY MARKET FUND MONEY MARKET 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 --------- --------- --------- --------- --------- --------- Shares Issued and Redeemed: Trust Shares: Shares Issued ............ 4,333,496 5,592,919 1,120,651 1,434,739 1,102,305 1,008,862 Shares Issued in Lieu of Cash Distributions 6,234 11,579 -- -- 2,771 6,639 Shares Redeemed .......... (4,160,894) (5,187,969) (1,293,278) (1,110,272) (912,571) (678,560) --------- --------- --------- --------- --------- --------- Net Trust Share Transactions 178,836 416,529 (172,627) 324,467 192,505 336,941 --------- --------- --------- --------- --------- --------- Investor Shares: Shares Issued ............ 1,188,331 1,478,512 184,704 317,900 598,096 327,361 Shares Issued in Lieu of Cash Distributions 40,129 91,917 2,883 5,768 4,249 5,305 Shares Redeemed .......... (1,268,613) (955,990) (226,454) (192,285) (550,459) (253,825) --------- --------- --------- --------- --------- --------- Net Investor Share Transactions (40,153) 614,439 (38,867) 131,383 51,886 78,841 --------- --------- --------- --------- --------- --------- Flex Shares: Shares Issued............. 17,534 14,829 -- -- -- -- Shares Issued in Lieu of Cash Distributions.... 80 127 -- -- -- -- Shares Redeemed........... (9,364) (14,351) -- -- -- -- --------- --------- --------- --------- --------- --------- Net Flex Share Transactions 8,250 605 -- -- -- -- --------- --------- --------- --------- --------- --------- Net Change in Capital Shares 146,933 1,031,573 (211,494) 455,850 244,391 415,782 ========= ========= ========= ========= ========= =========
U.S. TREASURY VIRGINIA TAX-FREE MONEY MARKET FUND MONEY MARKET 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 --------- --------- --------- --------- Shares Issued and Redeemed: Trust Shares: Shares Issued ............ 1,525,826 1,473,337 415,687 341,412 Shares Issued in Lieu of Cash Distributions 8 33 133 173 Shares Redeemed .......... (1,387,957) (1,462,968) (401,345) (360,665) --------- --------- ------- -------- Net Trust Share Transactions 137,877 10,402 14,475 (19,080) --------- --------- ------- -------- Investor Shares: Shares Issued ............ -- -- 136,756 136,485 Shares Issued in Lieu of Cash Distributions -- -- 1,236 2,175 Shares Redeemed .......... -- -- (131,866) (108,543) --------- --------- ------- -------- Net Investor Share Transactions -- -- 6,126 30,117 --------- --------- ------- -------- Flex Shares: Shares Issued............. -- -- -- -- Shares Issued in Lieu of Cash Distributions.... -- -- -- -- Shares Redeemed........... -- -- -- -- --------- --------- ------- -------- Net Flex Share Transactions -- -- -- -- --------- --------- ------- -------- Net Change in Capital Shares 137,877 10,402 20,601 11,037 ========= ========= ======= ========
8. Concentration of Credit Risk: The Prime Quality Money Market Fund invests primarily in high quality money market instruments rated in the highest short-term rating category by Standard & Poor's Ratings Group ("S&P") or Moody's Investors Services, Inc. (Moody's) or, if not rated, are determined by the Investment Adviser to be of comparable quality. The Tax-Exempt Money Market and Virginia Tax-Free Money Market Funds invest in high quality, U.S. dollar denominated municipal securities rated in one of the two highest short-term rating categories or, if not rated, are determined by the Investment Adviser to be of comparable quality. The U.S. Government Securities Money Market and U.S. Treasury Money Market Funds invest exclusively in U.S. Treasury obligations, U.S. Government subsidiary corporation securities which are backed by the full faith and credit of the U.S. Government and repurchase agreements with approved dealers collateralized by U.S. Treasury securities and U.S. Government subsidiary corporation securities. 44 REPORT OF INDEPENDENT PUBLIC ACCOUNTANTS - -------------------------------------------------------------------------------- STI CLASSIC FUNDS MAY 31, 2002 To the Shareholders and Board of Trustees of STI Classic Funds: In our opinion, the accompanying statements of net assets 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 Prime Quality Money Market Fund, Tax-Exempt Money Market Fund, U.S. Government Securities Money Market Fund, U.S. Treasury Money Market Fund and Virginia Tax-Free Money Market Fund (five of the portfolios constituting STI Classic Funds, hereafter referred to as 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 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 custodian 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 of the Funds 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 45 TRUSTEES FOR STI CLASSIC TRUST - -------------------------------------------------------------------------------- UNAUDITED 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 AGE 1 THE TRUST SERVED 2 5 YEARS BOARD MEMBER 3 BOARD MEMBER 4 - ------------------------------------------------------------------------------------------------------------------------------------ INDEPENDENT BOARD MEMBERS - ------------- Thomas Gallagher, 54 Trustee May 2000 President, Genuine Parts Company 48 Director, National Service Wholesale Distribution, 1970 to the Industries; Director, Oxford present. Industries. Current Trustee of STI Classic Variable Trust. - ------------------------------------------------------------------------------------------------------------------------------------ F. Wendell Gooch, 69 Trustee May 1992 Retired; President, Orange County 48 Current Trustee on the 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 MEMBERS 5 - --------------- Richard W. Courts, II, Trustee November 2001 Chairman of the Board, Atlantic 48 Current Trustee of STI Classic 66 Investment Company, 1970 to the Variable Trust. present. - ------------------------------------------------------------------------------------------------------------------------------------ Clarence H. Ridley, 60 Trustee November 2001 Chairman of the Board; Haverty 48 Current Trustee of STI Classic Furniture Companies, 2001 to the 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.
46 NOTICE TO SHAREHOLDERS - -------------------------------------------------------------------------------- STI CLASSIC 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 adviser as to the pertinence of this notice. For the fiscal year ended May 31, 2002, each portfolio is designating the following items with regard to distributions paid during the year:
LONG TERM (20% RATE) QUALIFIED ORDINARY CAPITAL GAIN 5-YEAR GAIN INCOME TAX-EXEMPT TOTAL QUALIFYING FUND DISTRIBUTIONS DISTRIBUTION DISTRIBUTIONS INTEREST DISTRIBUTIONS DIVIDENDS (1) - -------------------------- ------------- ------------ ------------- ---------- ------------- ------------- Prime Quality Money Market Fund 0.00% 0.00% 100.00% 0.00% 100.00% 0.00% Tax-Exempt Money Market Fund 2.02% 0.00% 0.06% 97.92% 100.00% 0.00% U.S. Government Securities Money Market Fund 0.00% 0.00% 100.00% 0.00% 100.00% 0.00% U.S. Treasury Money Market Fund 0.00% 0.00% 100.00% 0.00% 100.00% 0.00% Virginia Tax Free Money Market Fund 0.02% 0.00% 0.97% 99.01% 100.00% 0.00%
- ----------------- (1) Qualifying dividends represent dividends which qualify for the corporate dividends received deduction and is reflected as a percentage of "Ordinary Income Distributions." 47 NOTES - -------------------------------------------------------------------------------- [BLANK PAGE] INVESTMENT ADVISER Trusco Capital Management, Inc. STI Classic Funds are not deposits, are not insured or guaranteed by the FDIC or any other government agency, and are not endorsed by and do not constitute obligations of SunTrust Banks, Inc. or any other of its affiliates. Investment in the Funds involves risk, including the possible loss of principal. There is no guarantee that any STI Classic Fund will achieve its investment objective. The STI Classic Funds are advised by 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-AR-003-0200 -----END PRIVACY-ENHANCED MESSAGE-----