-----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, TxSefALEg4blLtU5WKxIrlY8DjepNhY/GoVGGku/skBrA18iMB1zAj7CldA48Y50 TPJm+1ZOOP/WKtabH7DHkg== 0000935069-03-000081.txt : 20030130 0000935069-03-000081.hdr.sgml : 20030130 20030130120928 ACCESSION NUMBER: 0000935069-03-000081 CONFORMED SUBMISSION TYPE: N-30D PUBLIC DOCUMENT COUNT: 1 CONFORMED PERIOD OF REPORT: 20021130 FILED AS OF DATE: 20030130 EFFECTIVENESS DATE: 20030130 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: 03531319 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 sticlassicinstmm.txt STI CLASSIC INST. MONEY MARKET NOVEMBER 2002 SEMI-ANNUAL ................................................................................. FINANCIAL REPORT ................................................................................. STI CLASSIC FUNDS ................................................................................. A Family of Mutual Funds ................................................................................. BOND FUNDS CLASSIC INSTITUTIONAL SHORT-TERM BOND FUND CLASSIC INSTITUTIONAL SUPER SHORT INCOME PLUS FUND CLASSIC INSTITUTIONAL U.S. GOVERNMENT SECURITIES SUPER SHORT INCOME PLUS FUND MONEY MARKET FUNDS CLASSIC INSTITUTIONAL CASH MANAGEMENT MONEY MARKET FUND CLASSIC INSTITUTIONAL U.S. GOVERNMENT SECURITIES MONEY MARKET FUND CLASSIC INSTITUTIONAL U.S. TREASURY SECURITIES MONEY MARKET FUND November 30, 2002 [STI Classic Funds] [blank page] Dear Valued STI Classic Funds' Shareholder: The equity markets closed lower and the bond markets finished higher in the six months ended November 30, 2002, but stocks appeared to begin a cyclical bottoming process that may bode well for improved performance in 2003. Continued concerns about strength of the economic and corporate profits recovery left the S&P 500 Composite Index down 11.5% on a total return basis during this period, while the fixed-income market performance as measured by the Lehman Aggregate Bond Index rose just under 5%. As you may recall from previous letters, we have been cautiously positive on the equity markets since shortly after the tragic events of September 11, 2001. The favorable confluence of aggressive interest rate cuts by the Federal Reserve, tax reductions and spending increases by the Federal Government, more realistic corporate earnings expectations, and increasingly negative investor psychology helped provide a more attractive environment for equities. You may also recall however, that we have been much more price-sensitive and timing-sensitive in our equity selection. This was a result of our expectation that the current economic recovery would be more muted by historical standards, and that the markets would have a tendency to "chase" good news beyond its actual value. We also adopted a more cautious stance toward fixed-income investments, emphasizing the potential benefits from a gradual reduction in credit risk rather than betting that long term yields will fall much below their 40-year lows. During the past six months, the economy continued its uneven but positive recovery at a pace that resembled the "stealth recovery" of the early 1990s. Job and production growth has been frustratingly slow, causing investors to worry about a "double-dip" recession. The S&P 500 tended to reflect the on-again-off-again shift in sentiment and expectations, bottoming first in July and again in October. While none of the ten major sectors in the Index posted gains over the past six months, both the battered technology and telecommunications sectors did garner some renewed investor interest amid signs of an evolving capital spending recovery. Large-cap stocks also regained favor during the period, though they lagged small-cap stocks over the past twelve months. Neither the growth nor the value styles showed a significant performance advantage, however. The fixed-income markets also experienced shifting performance during the period. While the highest quality, longer-term Treasury securities showed the best returns over the six months, corporate and mortgage-backed securities staged an impressive recovery in October and November. During this time we continued to emphasize the benefits of and need for a well-diversified portfolio as the most effective means of navigating these turbulent markets. We are increasingly optimistic in our outlook for the economy and the stock markets in the closing days of 2002, but we also realize there are significant potential constraints on both. While the economy is currently working its way through a "soft patch," it appears that most corporations have eliminated excess inventories, have downsized considerably, and have returned to profitability. Moreover, the Fed reduced short-term rates again in November and the Republican control of both houses of Congress following the mid-term elections suggests a higher probability of further tax cuts and other fiscal stimulus. While these factors will help provide a sturdy base for recovery, the pace of growth is likely to be somewhat constrained by an already strong pace of consumer spending, sluggish job growth and the threat from global instability. This may mean a continuation of the volatility that has characterized market performance in recent years, but we believe the economy and the stock markets can develop a more positive trend. We believe our emphasis on fundamental research on each company security we purchase will continue to provide the kind of strong relative performance that our clients have come to know and expect from the STI Classic Family of Mutual Funds. We thank you for your loyalty and trust during these challenging times, and we will continue to earn and validate that trust in 2003. Sincerely, /s/ Douglas S. Phillips Douglas S. Phillips Chief Investment Officer 1 SCHEDULE OF INVESTMENTS - -------------------------------------------------------------------------------- STI CLASSIC FUNDS NOVEMBER 30, 2002 CLASSIC INSTITUTIONAL SHORT-TERM BOND FUND - -------------------------------------------------------------------------------- FACE AMOUNT (000) VALUE (000) - -------------------------------------------------------------------------------- U.S. TREASURY OBLIGATIONS (49.7%) U.S. Treasury Notes 5.875%, 11/15/04 $1,000 $ 1,073 3.500%, 11/15/06 (F) 1,075 1,096 3.000%, 11/30/03 2,600 2,638 2.125%, 08/31/04 (F) 5,000 5,015 ------- Total U.S. Treasury Obligations (Cost $9,726) 9,822 ------- U.S. GOVERNMENT AGENCY OBLIGATIONS (18.2%) FHLB 3.250%, 08/15/05 (F) 500 507 FHLMC 3.250%, 11/15/04 1,000 1,019 FNMA 3.875%, 03/15/05 1,000 1,034 3.500%, 09/15/04 (F) 1,000 1,023 ------- Total U.S. Government Agency Obligations (Cost $3,576) 3,583 ------- CORPORATE OBLIGATIONS (16.7%) AUTOMOTIVE (1.4%) Daimler-Chrysler 7.750%, 06/15/05 250 270 ------- BANKS (2.6%) Bank of America 7.875%, 05/16/05 130 145 Credit Suisse First Boston 5.875%, 08/01/06 250 262 Wachovia 6.800%, 06/01/05 100 109 ------- 516 ------- BUILDING & CONSTRUCTION (0.5%) Masco (F) 6.750%, 03/15/06 100 107 ------- - -------------------------------------------------------------------------------- FACE AMOUNT (000) VALUE (000) - -------------------------------------------------------------------------------- COMPUTER SERVICES (0.7%) Electronic Data Systems (F) 6.850%, 10/15/04 $ 125 $ 128 ------- DIVERSIFIED OPERATIONS (0.7%) Philip Morris 7.000%, 07/15/05 132 142 ------- FINANCIAL SERVICES (3.7%) American General 6.750%, 06/15/05 250 273 CIT Group 6.500%, 02/07/06 180 185 General Electric Capital, Ser A, MTN 7.500%, 05/15/05 250 277 ------- 735 ------- HEALTH CARE (1.3%) Cardinal Health 6.500%, 02/15/04 250 263 ------- INVESTMENT BANKERS/BROKER DEALERS (2.8%) Goldman Sachs Group 7.625%, 08/17/05 250 278 Paine Webber Group 6.375%, 05/15/04 250 265 ------- 543 ------- MULTIMEDIA (1.4%) Viacom 7.750%, 06/01/05 250 278 ------- PETROLEUM & FUEL PRODUCTS (0.7%) Conoco 5.900%, 04/15/04 125 131 ------- REAL ESTATE (0.4%) EOP Operating LP 7.375%, 11/15/03 75 78 ------- 2 - -------------------------------------------------------------------------------- (UNAUDITED) - -------------------------------------------------------------------------------- SHARES/FACE AMOUNT (000) VALUE (000) - -------------------------------------------------------------------------------- UTILITIES (0.5%) Pacificorp 6.750%, 04/01/05 $ 100 $ 107 ------- Total Corporate Obligations (Cost $3,281) 3,298 ------- ASSET-BACKED SECURITIES (7.6%) Bank One Issuance Trust, Ser 2002-A4, Cl A4 2.940%, 06/16/08 500 499 Capital Auto Receivables Asset Trust, Series 2002-4, Cl A4 2.640%, 03/17/08 500 499 Honda Auto Receivables Owner Trust, Ser 2002-3, Cl A4 3.610%, 12/18/07 500 507 ------- Total Asset-Backed Securities (Cost $1,500) 1,505 ------- CASH EQUIVALENTS (7.2%) Federated Prime Obligation Money Market Fund 819,410 819 SEI Daily Income Trust Prime Obligation Fund 598,163 598 ------- Total Cash Equivalents (Cost $1,417) 1,417 ------- Total Investments (99.4%) (Cost $19,500) $19,625 ======= Percentages are based on Net Assets of $19,746,700. THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS. FOR DESCRIPTIONS OF ABBREVIATIONS, PLEASE SEE PAGE 18. 3 STATEMENT OF NET ASSETS - -------------------------------------------------------------------------------- STI CLASSIC FUNDS NOVEMBER 30, 2002 CLASSIC INSTITUTIONAL SUPER SHORT INCOME PLUS FUND - -------------------------------------------------------------------------------- FACE AMOUNT (000) VALUE (000) - -------------------------------------------------------------------------------- U.S. GOVERNMENT AGENCY OBLIGATIONS (26.8%) FHLMC 4.125%, 02/04/05 $1,325 $ 1,332 3.875%, 06/27/05 1,325 1,339 FHLMC, Ser 1520 Cl H 6.250%, 11/15/07 2,000 2,063 FHLMC, Ser 1667 Cl PE 6.000%, 03/15/08 688 691 FHLMC, Ser 2105 Cl QB 5.500%, 02/15/17 235 238 FHLMC, Ser 2114 Cl QB 5.750%, 02/15/14 428 429 FHLMC, Ser 2292 Cl QX 5.500%, 02/15/17 1,935 1,944 FHLMC, Ser 2346 Cl PA 5.500%, 05/15/10 1,383 1,403 FHLMC, Ser 2368 Cl OB 5.000%, 09/15/07 1,700 1,742 FHLMC, Ser 2378 Cl PA 5.500%, 06/15/06 746 761 FHLMC, Ser 2425 Cl JA 6.000%, 02/15/04 1,256 1,263 FHLMC, Ser 2438 Cl LF 5.500%, 06/15/06 146 146 FHLMC, Ser 2447 Cl BA 5.500%, 05/15/07 734 749 FHLMC, Ser 2497 Cl NM 4.500%, 05/15/14 737 751 FHLMC, Ser 2453 Cl BA 5.000%, 07/15/11 740 757 FHLMC, Ser 2485 Cl AF 5.500%, 12/15/15 934 967 FHLMC, Ser 2485 Cl AH 5.500%, 12/15/13 914 941 FHLMC, Ser 2497 Cl PA 6.000%, 05/15/06 1,955 1,983 FNMA 3.125%, 08/15/05 875 881 FNMA, Ser 1629 Cl HA 3.500%, 12/15/21 300 301 - -------------------------------------------------------------------------------- FACE AMOUNT (000) VALUE (000) - -------------------------------------------------------------------------------- U.S. GOVERNMENT AGENCY OBLIGATIONS -- CONTINUED FNMA, Ser 1689 Cl G 6.000%, 09/15/21 $3,012 $ 3,037 FNMA, Ser 2430 Cl TA 5.000%, 04/15/15 625 640 FNMA, Ser 2508 Cl MF 5.000%, 04/15/13 993 1,024 SLMA, MTN (B) 1.678%, 08/27/04 1,400 1,405 ------- Total U.S. Government Agency Obligations (Cost $26,730) 26,787 ------- CORPORATE OBLIGATIONS (31.4%) AEROSPACE & DEFENSE (1.9%) Lockheed Martin 6.750%, 03/15/03 900 911 United Technologies 6.625%, 11/15/04 923 995 ------- 1,906 ------- AIR TRANSPORTATION (0.7%) FedEx 6.625%, 02/12/04 650 677 ------- AUTOMOTIVE (1.2%) Daimler Chrysler 6.900%, 09/01/04 821 865 Daimler Chrysler, Ser C, MTN (B) 1.650%, 08/21/03 300 299 ------- 1,164 ------- BANKS (3.8%) Bank of America 6.625%, 06/15/04 725 771 Bank of New York 6.625%, 06/15/03 775 795 Bank One 7.625%, 08/01/05 775 863 National City Bank 7.200%, 05/15/05 625 681 4 - -------------------------------------------------------------------------------- (UNAUDITED) - -------------------------------------------------------------------------------- FACE AMOUNT (000) VALUE (000) - -------------------------------------------------------------------------------- BANKS -- CONTINUED Wells Fargo (F) 6.625%, 07/15/04 $ 650 $ 694 ------- 3,804 ------- BUILDING & CONSTRUCTION (2.4%) Hanson Overseas 7.375%, 01/15/03 900 904 Masco 6.125%, 09/15/03 530 543 6.000%, 05/03/04 885 921 ------- 2,368 ------- CONSUMER STAPLES (0.8%) Procter & Gamble 6.600%, 12/15/04 700 759 ------- DRUGS (0.2%) Eli Lilly 6.250%, 03/15/03 200 202 ------- FINANCE (7.1%) CIT Group 5.500%, 02/15/04 700 710 Countrywide Home Loan 6.850%, 06/15/04 700 742 Diageo Capital 6.625%, 06/24/04 500 532 6.125%, 08/15/05 500 541 General Electric Capital, Ser A, MTN (F) 4.250%, 01/28/05 975 1,010 GMAC 7.500%, 07/15/05 750 780 5.750%, 11/10/03 350 355 Pitney Bowes 5.650%, 01/15/03 100 101 PNC Funding 6.875%, 03/01/03 500 506 Unilever Capital 6.875%, 11/01/05 500 553 - -------------------------------------------------------------------------------- FACE AMOUNT (000) VALUE (000) - -------------------------------------------------------------------------------- FINANCE -- CONTINUED Verizon Global Funding (F) 6.750%, 12/01/05 $ 500 $ 542 Washington Mutual Financial 8.250%, 06/15/05 600 670 ------- 7,042 ------- FOOD, BEVERAGE & TOBACCO (0.8%) Kellogg, Ser B 5.500%, 04/01/03 320 323 Safeway 3.625%, 11/05/03 500 503 ------- 826 ------- INDUSTRIAL (0.5%) IBM, MTN 5.250%, 12/01/03 450 464 ------- INSURANCE (0.8%) Allstate 7.875%, 05/01/05 700 773 ------- INVESTMENT BANKERS/BROKER DEALERS (1.3%) Lehman Brothers Holdings 6.625%, 04/01/04 500 526 Morgan Stanley Dean Witter 5.625%, 01/20/04 725 753 ------- 1,279 ------- METALS & MINING (0.5%) Minnesota Mining and Manufacturing 4.250%, 09/01/04 500 518 ------- MULTIMEDIA (1.5%) Viacom 7.750%, 06/01/05 700 777 6.750%, 01/15/03 775 779 ------- 1,556 ------- 5 STATEMENT OF NET ASSETS - -------------------------------------------------------------------------------- STI CLASSIC FUNDS NOVEMBER 30, 2002 CLASSIC INSTITUTIONAL SUPER SHORT INCOME PLUS FUND--CONTINUED - -------------------------------------------------------------------------------- FACE AMOUNT (000) VALUE (000) - -------------------------------------------------------------------------------- PETROLEUM & FUEL PRODUCTS (1.6%) BP Capital Markets PLC 4.000%, 04/29/05 $ 500 $ 517 Conoco 5.900%, 04/15/04 1,000 1,047 ------- 1,564 ------- PETROLEUM REFINING (0.9%) Texaco Capital 6.000%, 06/15/05 823 887 ------- RETAIL (1.2%) Target (F) 7.500%, 02/15/05 675 742 Wal-Mart Stores 4.150%, 06/15/05 500 514 ------- 1,256 ------- TELEPHONE & TELECOMMUNICATIONS (1.5%) Bellsouth Telecommunications 6.500%, 06/15/05 700 762 GTE North 6.000%, 01/15/04 750 776 ------- 1,538 ------- UTILITIES (1.7%) Alabama Power, Ser N 4.875%, 09/01/04 501 516 Georgia Power, Ser F 5.750%, 01/31/03 500 503 Wisconsin Electric Power 6.625%, 12/01/02 700 700 ------- 1,719 ------- REGIONAL GOVERNMENT AGENCY (1.0%) Province of Ontario 7.000%, 08/04/05 900 996 ------- Total Corporate Obligations (Cost $31,127) 31,298 ------- - -------------------------------------------------------------------------------- FACE AMOUNT (000) VALUE (000) - -------------------------------------------------------------------------------- COMMERCIAL PAPER (18.8%) AUTO FINANCE (2.3%) American Honda Finance 1.750%, 01/13/03 $2,250 $ 2,246 ------- FINANCE (6.0%) American Express 1.740%, 12/10/02 1,750 1,749 Barclays 1.727%, 12/18/02 2,000 1,999 Paccar 1.600%, 01/23/03 2,250 2,246 ------- 5,994 ------- INSURANCE (2.2%) Metlife 1.740%, 01/13/03 2,250 2,245 ------- INVESTMENT BANKERS/BROKER DEALERS (4.0%) Salomon Smith Barney 1.340%, 12/09/02 2,000 2,000 UBS Finance 1.310%, 02/19/03 2,000 1,994 ------- 3,994 ------- MEDICAL (2.0%) Schering 1.310%, 12/06/02 2,000 2,000 ------- PRINTING & PUBLISHING (2.3%) New York Times 1.350%, 12/02/02 2,250 2,250 ------- Total Commercial Paper (Cost $18,726) 18,729 ------- 6 - -------------------------------------------------------------------------------- (UNAUDITED) - -------------------------------------------------------------------------------- FACE AMOUNT (000) VALUE (000) - -------------------------------------------------------------------------------- ASSET-BACKED SECURITIES (7.5%) Capital Auto Receivables Asset Trust, Ser 2002-5, Cl A2B 1.710%, 01/18/05 $1,125 $ 1,124 Chase Credit Card Master Trust, Ser 1998-3, Cl A 6.000%, 08/15/05 750 763 Chase Manhattan Auto Owner Trust, Series 2000-A, Cl A3 6.210%, 12/15/04 223 226 Citibank Credit Card Master Trust, Ser 1999-7, Cl A 6.650%, 11/15/06 500 539 Daimler Chrysler Auto Trust, Ser 2001-D, Cl A4 3.780%, 02/06/07 500 512 Discover Card Master Trust, Ser 1998-6, Cl A 5.850%, 01/17/06 600 616 Discover Card Master Trust, Ser 2001-4, Cl A (B) 1.471%, 10/16/06 725 725 Ford Auto Owner Trust, Ser 2001-D, Cl A2 3.710%, 09/15/03 96 96 Honda Auto Receivables Owner Trust, Ser 2001-3, Cl A2 2.760%, 02/18/04 290 290 Mellon Residential Funding, Ser 2001-HEIL, Cl A3 5.945%, 02/25/11 1,000 1,027 Nissan Auto Owner Receivables Trust, Ser 2001-C, Cl A2 3.770%, 02/17/04 185 186 The Money Store Home Equity Trust, Ser 1996-D, Cl A9 7.000%, 04/15/28 1,094 1,128 - -------------------------------------------------------------------------------- SHARES/FACE AMOUNT (000) VALUE (000) - -------------------------------------------------------------------------------- ASSET-BACKED SECURITIES -- CONTINUED Toyota Auto Receivables Owner Trust, Ser 2000-B, Cl A3 6.760%, 08/15/04 $ 235 $ 239 ------- Total Asset-Backed Securities (Cost $7,425) 7,471 ------- CASH EQUIVALENTS (8.6%) Dreyfus Government Cash Management Fund 4,300,000 4,300 Federated Prime Value Money Market Fund 4,300,000 4,300 ------- Total Cash Equivalents (Cost $8,600) 8,600 ------- REPURCHASE AGREEMENTS (6.5%) Merrill Lynch 1.295% dated 11/29/02, matures 12/02/02 repurchase price $3,684,974 (collateralized by U.S. Government obligations: total market value $3,758,784) (D) $3,685 3,685 UBS Warburg 1.315% dated 11/29/02, matures 12/02/02, repurchase price $2,798,575 (collateralized by U.S. Government obligation: total market value $2,855,235) (D) 2,798 2,798 ------- Total Repurchase Agreements (Cost $6,483) 6,483 ------- Total Investments (99.6%) (Cost $99,091) 99,368 ------- 7 STATEMENT OF NET ASSETS - -------------------------------------------------------------------------------- STI CLASSIC FUNDS NOVEMBER 30, 2002 CLASSIC INSTITUTIONAL SUPER SHORT INCOME PLUS FUND--CONCLUDED - -------------------------------------------------------------------------------- VALUE (000) - -------------------------------------------------------------------------------- OTHER ASSETS AND LIABILITIES (0.4%) Collateral Received on Securities Loaned $ 2,633 Payable upon Return of Securities Loaned (2,633) Investment Advisory Fee Payable (17) Shareholder Service Fee Payable -- Trust Shares (1) Administrative Fee Payable (6) Other Assets and Liabilities 393 ------- Total Other Assets and Liabilities, Net 369 ------- NET ASSETS: Fund Shares of the Institutional Shares (unlimited authorization-- no par value) based on 44,866,099 outstanding shares of beneficial interest 90,016 Fund Shares of the Trust Shares (unlimited authorization-- no par value) based on 4,695,911 outstanding shares of beneficial interest 9,439 Distributions in excess of net investment income (76) Accumulated net realized gain on investments 81 Net unrealized appreciation on investments 277 ------- Total Net Assets (100.0%) $99,737 ======= Net Asset Value, Offering and Redemption Price Per Share -- Institutional Shares $2.01 ======= Net Asset Value, Offering and Redemption Price Per Share -- Trust Shares $2.01 ======= THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS. FOR DESCRIPTIONS OF ABBREVIATIONS, PLEASE SEE PAGE 18. 8 - -------------------------------------------------------------------------------- (UNAUDITED) CLASSIC INSTITUTIONAL U.S. GOVERNMENT SECURITIES SUPER SHORT INCOME PLUS FUND - -------------------------------------------------------------------------------- FACE AMOUNT (000) VALUE (000) - -------------------------------------------------------------------------------- U.S. GOVERNMENT AGENCY OBLIGATIONS (82.6%) FHLB 3.625%, 10/15/04 $1,710 $ 1,754 FHLB (B) 1.260%, 03/12/03 2,500 2,500 FHLB Discount Note (C) 1.730%, 12/20/02 2,000 1,999 FHLMC 3.750%, 04/15/04 1,500 1,537 3.000%, 07/15/04 1,500 1,522 4.125%, 02/04/05 2,000 2,010 4.250%, 06/15/05 2,500 2,600 3.875%, 06/27/05 2,000 2,021 FHLMC, Ser 1520 Cl H 6.250%, 11/15/07 3,000 3,094 FHLMC, Ser 1564 Cl G 6.250%, 05/15/07 118 118 FHLMC, Ser 1667 CL PE 6.000%, 03/15/08 659 662 FHLMC, Ser 2105 Cl QB 5.500%, 02/15/17 437 443 FHLMC, Ser 2114 Cl QB 5.750%, 02/15/14 342 344 FHLMC, Ser 2292 Cl QX 5.500%, 02/15/17 3,000 3,014 FHLMC, Ser 2346 Cl PA 5.500%, 05/15/10 2,074 2,104 FHLMC, Ser 2368 Cl OB 5.000%, 09/15/07 1,679 1,720 FHLMC, Ser 2378 Cl PA 5.500%, 06/15/06 746 761 FHLMC, Ser 2425 Cl JA 6.000%, 02/15/04 1,388 1,396 FHLMC, Ser 2435 Cl CA 5.750%, 12/15/16 477 492 FHLMC, Ser 2438 Cl LF 5.500%, 06/15/06 146 146 - -------------------------------------------------------------------------------- FACE AMOUNT (000) VALUE (000) - -------------------------------------------------------------------------------- U.S. GOVERNMENT AGENCY OBLIGATIONS -- CONTINUED FHLMC, Ser 2447 Cl BA 5.500%, 05/15/07 $ 734 $ 749 FHLMC, Ser 2453 Cl BA 5.000%, 07/15/11 740 756 FHLMC, Ser 2485 Cl AF 5.500%, 12/15/15 2,102 2,176 FHLMC, Ser 2485 Cl AH 5.500%, 12/15/13 1,828 1,883 FHLMC, Ser 2497 Cl NM 4.500%, 05/15/14 1,229 1,252 FHLMC, Ser 2497 Cl PA 6.000%, 05/15/06 2,389 2,423 FHLMC, Ser 2508 Cl MF 5.000%, 04/15/13 1,986 2,048 FNMA 3.800%, 04/30/04 300 303 3.875%, 03/15/05 1,650 1,705 3.125%, 08/15/05 1,500 1,511 FNMA Discount Note (C) 1.230%, 12/11/02 2,000 1,999 FNMA, MTN (B) 1.570%, 12/05/02 2,000 2,000 FNMA, Ser 1629 Cl HA 3.500%, 12/15/21 200 201 FNMA, Ser 1689 Cl G 6.000%, 09/15/21 2,360 2,379 FNMA, Ser 1998-34 Cl PG 6.000%, 11/18/17 23 23 FNMA, Ser 2430 Cl TA 5.000%, 04/15/15 1,872 1,917 SLMA, MTN (B) 1.678%, 08/27/04 2,500 2,509 ------- Total U.S. Government Agency Obligations (Cost $55,793) 56,071 ------- 9 STATEMENT OF NET ASSETS - -------------------------------------------------------------------------------- STI CLASSIC FUNDS NOVEMBER 30, 2002 CLASSIC INSTITUTIONAL U.S. GOVERNMENT SECURITIES SUPER SHORT INCOME PLUS FUND--CONCLUDED - -------------------------------------------------------------------------------- SHARES/FACE AMOUNT (000) VALUE (000) - -------------------------------------------------------------------------------- CASH EQUIVALENTS (8.3%) Dreyfus Government Cash Management Fund 2,825,000 $ 2,825 Federated U.S. Government Fund 2,825,000 2,825 ------- Total Cash Equivalents (Cost $5,650) 5,650 ------- REPURCHASE AGREEMENTS (8.7%) Merrill Lynch 1.295% dated 11/29/02, matures 12/02/02, repurchase price $1,757,972 (collateralized by U.S. Government obligation: total market value $1,793,472) (D) $1,758 1,758 UBS Warburg 1.315% dated 11/29/02, matures 12/02/02, repurchase price $4,145,160 (collateralized by U.S. Government obligation: total market value $4,229,978) (D) 4,145 4,145 ------- Total Repurchase Agreements (Cost $5,903) 5,903 ------- Total Investments (99.6%) (Cost $67,346) 67,624 ------- OTHER ASSETS AND LIABILITIES (0.4%) Investment Advisory Fee Payable (7) Administrative Fee Payable (4) Other Assets and Liabilities 275 ------- Total Other Assets and Liabilities, Net 264 ------- - -------------------------------------------------------------------------------- VALUE (000) - -------------------------------------------------------------------------------- NET ASSETS: Fund Shares of the Institutional Shares (unlimited authorization-- no par value) based on 33,655,188 outstanding shares of beneficial interest $67,576 Distributions in excess of net investment income (75) Accumulated net realized gain on investments 109 Net unrealized appreciation on investments 278 ------- Total Net Assets (100.0%) $67,888 ======= Net Asset Value, Offering and Redemption Price Per Share -- Institutional Shares $ 2.02 ======= THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS. FOR DESCRIPTIONS OF ABBREVIATIONS, PLEASE SEE PAGE 18. 10 - -------------------------------------------------------------------------------- (UNAUDITED) CLASSIC INSTITUTIONAL CASH MANAGEMENT MONEY MARKET FUND - -------------------------------------------------------------------------------- FACE AMOUNT (000) VALUE (000) - -------------------------------------------------------------------------------- U.S. GOVERNMENT AGENCY OBLIGATIONS (36.2%) FFCB 2.125%, 01/28/03 $ 25,000 $ 25,000 FHLB, Ser 5D03 2.040%, 12/05/02 50,000 50,000 FHLB, Ser 8E03 1.880%, 11/05/03 50,000 50,000 FHLB, Ser 9403 (B) 1.348%, 02/05/03 50,000 50,000 FHLB, Ser EM03 (B) 1.303%, 03/14/03 120,000 120,000 FHLB, Ser J803 (G) 1.650%, 12/24/03 45,000 45,000 FHLMC Discount Note (C) 2.200%, 02/27/03 50,000 49,735 2.330%, 04/25/03 40,000 39,625 1.990%, 06/30/03 35,000 34,592 FNMA 2.250%, 02/07/03 65,000 65,000 FNMA (B) 1.368%, 12/12/02 50,000 50,000 FNMA Discount Note (C) 2.638%, 03/07/03 100,000 99,315 SLMA Discount Note (C) 2.280%, 01/27/03 175,000 174,368 SLMA, MTN (B) 1.328%, 02/15/03 50,000 49,998 1.328%, 03/07/03 125,000 124,993 1.308%, 03/19/03 100,000 99,994 ---------- Total U.S. Government Agency Obligations (Cost $1,127,620) 1,127,620 ---------- COMMERCIAL PAPER (7.8%) ASSET BACKED (1.9%) Starfish Global Funding 1.390%, 01/06/03 25,000 24,966 1.380%, 01/21/03 35,000 34,933 ---------- 59,899 ---------- - -------------------------------------------------------------------------------- FACE AMOUNT (000) VALUE (000) - -------------------------------------------------------------------------------- BANKS (2.1%) Den Norske 2.230%, 02/21/03 $ 65,000 $ 64,670 ---------- FINANCE (3.8%) Diageo Capital 1.910%, 04/07/03 25,000 24,834 2.080%, 07/07/03 75,000 74,073 Paccar 2.500%, 12/20/02 20,000 19,974 ---------- 118,881 ---------- Total Commercial Paper (Cost $243,450) 243,450 ---------- CORPORATE OBLIGATIONS (10.1%) AUTO FINANCE (3.2%) Toyota Motor Credit, Ser 1, MTN 1.508%, 12/16/02 100,000 100,000 ---------- BANKS (5.3%) Key Bank (B) 1.736%, 02/03/03 30,500 30,501 Marshall & Ilsley Bank 6.150%, 12/03/07 85,000 85,008 National City Bank (B) 1.438%, 01/10/03 50,000 50,000 ---------- 165,509 ---------- INVESTMENT BANKER/BROKER DEALER (1.6%) Bear Stearns, MTN (B) 1.420%, 05/22/03 50,000 50,000 ---------- Total Corporate Obligations (Cost $315,509) 315,509 ---------- ASSET BACKED SECURITIES (5.9%) Beta Finance, MTN (A)(B) 1.403%, 04/15/03 35,000 35,000 Dorada Finance, MTN (A)(B) 1.348%, 11/28/03 50,000 50,000 11 STATEMENT OF NET ASSETS - -------------------------------------------------------------------------------- STI CLASSIC FUNDS NOVEMBER 30, 2002 CLASSIC INSTITUTIONAL CASH MANAGEMENT MONEY MARKET FUND--CONCLUDED - -------------------------------------------------------------------------------- FACE AMOUNT (000) VALUE (000) - -------------------------------------------------------------------------------- ASSET BACKED SECURITIES -- CONTINUED Sigma Finance, MTN (A)(B) 1.518%, 12/13/02 $ 50,000 $ 50,000 1.366%, 12/03/03 50,000 50,000 ---------- Total Asset Backed Securities (Cost $185,000) 185,000 ---------- CERTIFICATES OF DEPOSIT (2.7%) Bayerische Hypo Vereinsbank 1.315%, 03/31/03 50,000 49,990 Branch Banking & Trust 1.780%, 01/24/03 35,000 35,000 ---------- Total Certificates of Deposit (Cost $84,990) 84,990 ---------- MUNICIPAL BONDS (1.7%) Delaware Valley, Regional Finance Authority, Ser A, (B) 1.210%, 07/01/32 26,995 26,995 New York State, Triborough Bridge & Tunnel Authority, RB (B) 1.210%, 11/15/32 24,400 24,400 ---------- Total Municipal Bonds (Cost $51,395) 51,395 ---------- TAXABLE MUNICIPAL BONDS (11.2%) Alaska State, Housing Finance Agency, Ser C, RB, MBIA (B) 1.370%, 12/01/32 48,800 48,800 California State, Housing Finance Agency, Home Mortgage, Ser H, RB, FSA Callable 12/11/02 @ 100 (B) 1.400%, 02/01/17 58,700 58,700 California State, Housing Finance Agency, Home Mortgage, Ser H, RB, MBIA (B) 1.350%, 08/01/19 16,550 16,550 - -------------------------------------------------------------------------------- FACE AMOUNT (000) VALUE (000) - -------------------------------------------------------------------------------- TAXABLE MUNICIPAL BONDS -- CONTINUED California State, Housing Finance Agency, Home Mortgage, Ser O, RB, AMBAC (B) 1.350%, 08/01/12 $ 55,050 $ 55,050 California State, Housing Finance Agency, Home Mortgage, Ser P, RB, FSA Callable 12/11/02 @ 100 (B) 1.400%, 08/01/29 36,500 36,500 Illinois State, Student Assistance Community, Ser B, RB Callable 01/02/03 @ 100 (B) 1.380%, 05/01/10 22,900 22,900 Illinois State, Student Assistance Community, Ser C, RB Callable 01/02/03 @ 100 (B) 1.380%, 12/01/22 12,000 12,000 Illinois State, Student Assistance Community, Ser D, RB Callable 01/02/03 @ 100 (B) 1.380%, 09/01/23 40,000 40,000 New York City, Housing Development, Chelsea Centro Project, RB, Callable 12/05/02 @ 100 (B) 1.400%, 06/01/33 28,600 28,600 Newport News, Economic Development Authority, Shipbuilding Project, Ser A, RB Callable 01/02/03 @ 100 (B) 1.430%, 07/01/31 4,800 4,800 Newport News, Economic Development Authority, Shipbuilding Project, Ser B, RB Callable 01/02/03 @ 100 (B) 1.380%, 07/01/31 24,230 24,230 ---------- Total Taxable Municipal Bonds (Cost $348,130) 348,130 ---------- 12 - -------------------------------------------------------------------------------- (UNAUDITED) - -------------------------------------------------------------------------------- SHARES/FACE AMOUNT (000) VALUE (000) - -------------------------------------------------------------------------------- CASH EQUIVALENTS (9.3%) Dreyfus Cash Management Plus Fund 145,000,000 $ 145,000 Federated Prime Value Money Market Fund 145,000,000 145,000 ---------- Total Cash Equivalents (Cost $290,000) 290,000 ---------- REPURCHASE AGREEMENTS (17.9%) Bear Stearns 1.365% dated 11/29/02, matures 12/02/02, repurchase price $96,210,797 (collateralized by U.S. Government obligations: total market value $98,127,002) (D) $ 96,200 96,200 Lehman Brothers 1.265% dated 11/29/02, matures 12/02/02, repurchase price $130,330,128 (collateralized by U.S. Government obligations: total market value $132,923,802) (D) 130,316 130,316 Merrill Lynch 1.295% dated 11/29/02, matures 12/02/02, repurchase price $98,571,211 (collateralized by U.S. Government obligations: total market value $100,531,913) (D) 98,561 98,561 Paribas 1.335% dated 11/29/02, matures 12/02/02, repurchase price $135,758,339 (collateralized by U.S. Government obligations: total market value $138,459,011) (D) 135,743 135,743 - -------------------------------------------------------------------------------- FACE AMOUNT (000) VALUE (000) - -------------------------------------------------------------------------------- REPURCHASE AGREEMENTS -- CONTINUED UBS Warburg 1.315% dated 11/29/02, matures 12/02/02, repurchase price $98,407,757 (collateralized by U.S. Government obligations: total market value $100,365,176) (D) $ 98,397 $ 98,397 ---------- Total Repurchase Agreements (Cost $559,217) 559,217 ---------- Total Investments (102.8%) (Cost $3,205,311) 3,205,311 ---------- OTHER ASSETS AND LIABILITIES (-2.8%) Investment Advisory Fee Payable (436) Administrative Fee Payable (152) Custodian Fee Payable (11) Other Assets and Liabilities (86,077) ---------- Total Other Assets and Liabilities, Net (86,676) ---------- NET ASSETS: Fund Shares of the Institutional Shares (unlimited authorization-- no par value) based on 3,118,635,489 outstanding shares of beneficial interest 3,118,635 Distributions in excess of net investment income (3) Accumulated net realized gain on investments 3 ---------- Total Net Assets (100.0%) $3,118,635 ========== Net Asset Value, Offering and Redemption Price Per Share -- Institutional Shares $1.00 ========== THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS. FOR DESCRIPTIONS OF ABBREVIATIONS, PLEASE SEE PAGE 18. 13 STATEMENT OF NET ASSETS - -------------------------------------------------------------------------------- STI CLASSIC FUNDS NOVEMBER 30, 2002 CLASSIC INSTITUTIONAL U.S. GOVERNMENT SECURITIES MONEY MARKET FUND - -------------------------------------------------------------------------------- FACE AMOUNT (000) VALUE (000) - -------------------------------------------------------------------------------- U.S. GOVERNMENT AGENCY OBLIGATIONS (66.6%) FFCB (B) 1.388%, 12/26/02 $40,000 $ 40,000 FFCB (E) 1.268%, 06/10/03 60,000 60,000 FHLB, Ser 5803 (B) 1.348%, 01/28/03 35,000 35,000 FHLB, Ser 8E03 1.880%, 11/05/03 20,000 20,000 FHLB, Ser 9403 (B) 1.348%, 02/05/03 50,000 50,000 FHLB, Ser EM03 (B) 1.303%, 03/14/03 40,000 40,000 FHLB, Ser J803 (G) 1.650%, 12/24/03 25,000 25,000 FHLB, Ser Q803 2.250%, 02/07/03 20,000 20,000 FHLMC Discount Note (C) 2.510%, 03/27/03 20,000 19,838 2.329%, 01/30/03 45,000 44,833 1.905%, 01/02/03 5,000 4,992 1.874%, 07/17/03 20,000 19,767 FNMA 2.250%, 02/07/03 15,000 15,000 FNMA (B) 1.368%, 12/12/02 75,000 75,000 1.348%, 01/10/03 50,000 50,000 FNMA Discount Note (C) 1.250%, 12/13/02 10,000 9,993 2.390%, 04/04/03 10,000 9,918 2.368%, 05/02/03 30,000 29,706 2.122%, 05/30/03 10,000 9,896 1.936%, 06/27/03 25,000 24,725 1.900%, 01/10/03 25,000 24,947 SLMA Discount Note (C) 2.417%, 05/20/03 10,000 9,888 2.328%, 01/27/03 25,000 24,910 - -------------------------------------------------------------------------------- SHARES/FACE AMOUNT (000) VALUE (000) - -------------------------------------------------------------------------------- SLMA, MTN (B) 1.328%, 02/18/03 to 03/07/03 $50,000 $ 49,998 ---------- Total U.S. Government Agency Obligations (Cost $713,411) 713,411 ---------- CASH EQUIVALENTS (7.5%) Dreyfus U.S. Government Money Market Fund 40,000,000 40,000 Financial Square Government Portfolio 40,000,000 40,000 ---------- Total Cash Equivalents (Cost $80,000) 80,000 ---------- REPURCHASE AGREEMENTS (28.2%) Bear Stearns 1.365% dated 11/29/02, matures 12/02/02, repurchase price $43,823,110 (collateralized by U.S. Government obligation: total market value $44,697,599) (D) $43,818 43,818 Lehman Brothers 1.265% dated 11/29/02, matures 12/02/02, repurchase price $49,618,206 (collateralized by U.S. Government obligation: total market value $50,607,935) (D) 49,613 49,613 Merrill Lynch 1.295% dated 11/29/02, matures 12/02/02, repurchase price $40,522,961 (collateralized by U.S. Government obligations: total market value $41,329,849) (D) 40,519 40,519 14 - -------------------------------------------------------------------------------- (UNAUDITED) - -------------------------------------------------------------------------------- FACE AMOUNT (000) VALUE (000) - -------------------------------------------------------------------------------- REPURCHASE AGREEMENTS -- CONTINUED Paribas 1.335% dated 11/29/02, matures 12/02/02, repurchase price $80,776,586 (collateralized by U.S. Government obligations: total market value $82,388,344) (D) $80,768 $ 80,768 UBS Warburg 1.315% dated 11/29/02, matures 12/02/02, repurchase price $87,740,707 (collateralized by U.S. Government obligations: total market value $89,486,519) (D) 87,731 87,731 ---------- Total Repurchase Agreements (Cost $302,449) 302,449 ---------- Total Investments (102.3%) (Cost $1,095,860) 1,095,860 ---------- - -------------------------------------------------------------------------------- VALUE (000) - -------------------------------------------------------------------------------- OTHER ASSETS AND LIABILITIES (-2.3%) Investment Advisory Fee Payable $ (155) Administrative Fee Payable (42) Custodian Fee Payable (4) Other Assets and Liabilities (24,353) ---------- Total Other Assets and Liabilities, Net (24,554) ---------- NET ASSETS: Fund Shares of the Institutional Shares (unlimited authorization-- no par value) based on 1,071,306,098 outstanding shares of beneficial interest 1,071,306 ---------- Total Net Assets (100.0%) $1,071,306 ========== Net Asset Value, Offering and Redemption Price Per Share -- Institutional Shares $ 1.00 ========== THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS. FOR DESCRIPTIONS OF ABBREVIATIONS, PLEASE SEE PAGE 18. 15 STATEMENT OF NET ASSETS - -------------------------------------------------------------------------------- STI CLASSIC FUNDS NOVEMBER 30, 2002 CLASSIC INSTITUTIONAL U.S. TREASURY SECURITIES MONEY MARKET FUND - -------------------------------------------------------------------------------- SHARES/FACE AMOUNT (000) VALUE (000) - -------------------------------------------------------------------------------- U.S. TREASURY OBLIGATIONS (17.8%) U.S. Treasury Notes 5.500%, 02/28/03 $ 40,000 $ 40,301 4.625%, 02/28/03 45,000 45,250 4.250%, 03/31/03 50,000 50,308 4.250%, 11/15/03 150,000 150,891 3.000%, 11/30/03 60,000 60,882 ---------- Total U.S. Treasury Obligations (Cost $350,632) 350,632 ---------- CASH EQUIVALENTS (9.6%) Dreyfus Treasury Prime Cash Management Fund 95,000,000 95,000 Federated U.S. Treasury Cash Reserves Fund 95,000,000 95,000 ---------- Total Cash Equivalents (Cost $190,000) 190,000 ---------- REPURCHASE AGREEMENTS (72.6%) ABN Amro 1.255% dated 11/29/02, matures 12/02/02, repurchase price $79,142,740 (collateralized by U.S. Treasury obligations: total market value $80,718,090) (D) $ 79,134 79,134 Bear Stearns 1.255% dated 11/29/02, matures 12/02/02, repurchase price $80,116,180 (collateralized by U.S. Treasury obligations: total market value $82,473,865) (D) 80,108 80,108 Deutsche Bank 1.295% dated 11/29/02, matures 12/02/02, repurchase price $96,796,974 (collateralized by U.S. Treasury obligations: total market value $98,722,405) (D) 96,787 96,787 - -------------------------------------------------------------------------------- FACE AMOUNT (000) VALUE (000) - -------------------------------------------------------------------------------- REPURCHASE AGREEMENTS -- CONTINUED Dresdner Bank 1.255% dated 11/29/02, matures 12/02/02, repurchase price $95,157,508 (collateralized by U.S. Treasury obligations: total market value $97,055,019) (D) $ 95,148 $ 95,148 Greenwich 1.255% dated 11/29/02, matures 12/02/02, repurchase price $65,011,457 (collateralized by U.S. Treasury obligations: total market value $66,307,739) (D) 65,005 65,005 JP Morgan Chase 1.255% dated 11/29/02, matures 12/02/02, repurchase price $87,781,895 (collateralized by U.S. Treasury obligation: total market value $89,531,094) (D) 87,773 87,773 Lehman Brothers 1.255% dated 11/29/02, matures 12/02/02, repurchase price $84,151,192 (collateralized by U.S. Treasury obligations: total market value $85,826,303) (D) 84,143 84,143 Paribas 1.285% dated 11/29/02, matures 12/02/02, repurchase price $380,664,405 (collateralized by U.S. Treasury obligations: total market value $388,236,921) (D) 380,624 380,624 Salomon 1.275%, dated 11/29/02, matures 12/02/02, repurchase price $91,516,421 (collateralized by U.S. Treasury obligations: total market value $93,339,907) (D) 91,507 91,507 16 - -------------------------------------------------------------------------------- (UNAUDITED) - -------------------------------------------------------------------------------- FACE AMOUNT (000) VALUE (000) - -------------------------------------------------------------------------------- REPURCHASE AGREEMENTS -- CONTINUED UBS Warburg 1.295% dated 11/29/02, matures 12/02/02, repurchase price $369,626,697 (collateralized by U.S. Treasury obligations: total market value $376,979,721) (D) $369,587 $ 369,587 ---------- Total Repurchase Agreements (Cost $1,429,816) 1,429,816 ---------- Total Investments (100.0%) (Cost $1,970,448) 1,970,448 ---------- OTHER ASSETS AND LIABILITIES (0.0%) Investment Advisory Fee Payable (309) Shareholder Service Fee Payable -- Corporate Trust Shares (250) Administrative Fee Payable (88) Custodian Fee Payable (7) Other Assets and Liabilities 1,140 ---------- Total Other Assets and Liabilities, Net 486 ---------- - -------------------------------------------------------------------------------- VALUE (000) - -------------------------------------------------------------------------------- NET ASSETS: Fund Shares of the Institutional Shares (unlimited authorization -- no par value) based on 528,564,475 outstanding shares of beneficial interest $ 528,565 Fund Shares of the Corporate Trust Shares (unlimited authorization -- no par value) based on 1,441,715,598 outstanding shares of beneficial interest 1,441,715 Distributions in excess of net investment income (587) Accumulated net realized gain on investments 1,241 ---------- Total Net Assets (100.0%) $1,970,934 ---------- Net Asset Value, Offering and Redemption Price Per Share -- Institutional Shares $ 1.00 ========== Net Asset Value, Offering and Redemption Price Per Share -- Corporate Trust Shares $ 1.00 ========== THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS. FOR DESCRIPTIONS OF ABBREVIATIONS, PLEASE SEE PAGE 18. 17 - -------------------------------------------------------------------------------- KEY TO ABBREVIATIONS USED IN THE STATEMENTS OF NET ASSETS AND SCHEDULE OF INVESTMENTS AMBAC Security insured by the American Municipal Bond Assurance Corporation Cl Class FFCB Federal Farm Credit Bank FHLB Federal Home Loan Bank FHLMC Federal Home Loan Mortgage Corporation FNMA Federal National Mortgage Association FSA Security insured by Financial Security Assurance LP Limited Partnership MBIA Security insured by the Municipal Bond Insurance Association MTN Medium Term Note PLC Public Limited Company RB Revenue Bond Ser Series SLMA Student Loan Marketing Association (A) Private Placement Security (B) Adjustable Rate Security. The rate reported on the Statements of Net Assets and Schedule of Investments is the rate in effect on November 30, 2002. (C) Rate shown is the effective yield at the date of purchase. (D) Tri-Party Repurchase Agreement (E) Zero Coupon Security. The rate shown is the effective yield at the time of purchase. (F) This security or a partial position of this security is on loan at November 30, 2002 (See Note 10). (G) Security purchased on a when-issued basis. 18 This page left intentionally blank. STATEMENT OF ASSETS & LIABILITIES (000) - -------------------------------------------------------------------------------- STI Classic Funds NOVEMBER 30, 2002 (UNAUDITED)
CLASSIC INSTITUTIONAL SHORT-TERM BOND FUND ------------- Assets: Investments at Market Value (Cost $19,500) .......................................................... $19,625 Cash ................................................................................................ 53 Collateral received on securities loaned ............................................................ 6,369 Accrued Income ...................................................................................... 117 ------- Total Assets ........................................................................................ 26,164 ------- Liabilities: Payable upon return of securities loaned ............................................................ 6,369 Income Distribution Payable ......................................................................... 37 Payable for Investment Advisor Fees ................................................................. 6 Payable for Administration Fees ..................................................................... 1 Accrued Expense Payable ............................................................................. 4 ------- Total Liabilities ................................................................................... 6,417 ------- Total Net Assets .................................................................................... $19,747 ======= Net Assets: Fund shares of the Institutional Shares (unlimited authorization -- no par value) based on 1,932,962 outstanding shares of beneficial interest. ..................................... 19,354 Accumulated net realized gain on investments ........................................................ 268 Net unrealized appreciation on investments .......................................................... 125 ------- Total Net Assets .................................................................................... $19,747 ======= Net Asset Value, Offering and Redemption Price Per Share -- Institutional Shares .................... $ 10.22 =======
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS. 20
STATEMENTS OF OPERATIONS (000) - --------------------------------------------------------------------------------------------------------------------- STI CLASSIC FUNDS FOR THE SIX MONTH PERIOD ENDED NOVEMBER 30, 2002 (UNAUDITED) CLASSIC CLASSIC INSTITUTIONAL CLASSIC INSTITUTIONAL U.S. GOVERNMENT INSTITUTIONAL SUPER SHORT SECURITIES SUPER SHORT-TERM INCOME SHORT INCOME BOND FUND PLUS FUND PLUS FUND ------------- -------------- ---------------- Income: Interest Income ........................ $277 $ 857 $703 Income from Securities Lending ......... 3 1 -- ---- ------ ---- Total Income ........................... 280 858 703 ---- ------ ---- Expenses: Investment Advisory Fees ............... 57 180 121 Administrator Fees ..................... 6 25 21 Transfer Agent Fees - Institutional Shares ................. 7 7 7 Transfer Agent Fees - Corporate Trust Shares ............... -- -- -- Transfer Agent Fees - Trust Shares ......................... -- 1 -- Transfer Agent Out of Pocket Expenses and Shareholder Servicing Fees ........... 1 2 2 Printing Fees .......................... -- 1 1 Custody Fees ........................... -- 1 1 Professional Fees ...................... -- 1 1 Trustee Fees ........................... -- -- -- Registration Fees ...................... -- 1 1 Shareholder Service Fees - Institutional Shares ................. 24 88 76 Shareholder Service Fees - Corporate Trust Shares ............... -- -- -- Shareholder Service Fees - Trust Shares ......................... -- 2 -- Insurance and Other Fees ............... 3 2 4 ---- ------ ---- Total Expenses ......................... 98 311 235 ---- ------ ---- Less: Investment Advisory Fees Waived ........................ (24) (108) (85) Administrator Fees Waived ......... -- -- -- Shareholder Service Fees Waived - Institutional Shares ....... (24) (88) (76) ---- ------ ---- Net Expenses .......................... 50 115 74 ---- ------ ---- Net Investment Income ..................... 230 743 629 ---- ------ ---- Net Realized Gain on Securities Sold ........................ 268 85 120 Net Change in Unrealized Appreciation on Investments ............ 73 247 218 ---- ------ ---- Increase in Net Assets Resulting from Operations ........................ $571 $1,075 $967 ==== ====== ====
Amounts designated as "--" are either $0 or round to $0. THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.
CLASSIC CLASSIC CLASSIC INSTITUTIONAL INSTITUTIONAL INSTITUTIONAL CASH MANAGEMENT U.S. GOVERNMENT U.S. TREASURY MONEY MARKET SECURITIES MONEY SECURITIES MONEY FUND MARKET FUND MARKET FUND --------------- ---------------- ---------------- Income: Interest Income ........................ $31,280 $9,846 $17,941 Income from Securities Lending ......... -- -- -- ------- ------ ------- Total Income ........................... 31,280 9,846 17,941 ------- ------ ------- Expenses: Investment Advisory Fees ............... 3,169 1,039 2,054 Administrator Fees ..................... 1,091 358 707 Transfer Agent Fees - Institutional Shares ................. 8 8 8 Transfer Agent Fees - Corporate Trust Shares ............... -- -- 8 Transfer Agent Fees - Trust Shares ......................... -- -- -- Transfer Agent Out of Pocket Expenses and Shareholder Servicing Fees ........... 83 24 54 Printing Fees .......................... 44 12 30 Custody Fees ........................... 36 12 23 Professional Fees ...................... 57 19 37 Trustee Fees ........................... 15 5 10 Registration Fees ...................... 47 13 33 Shareholder Service Fees - Institutional Shares ................. -- -- -- Shareholder Service Fees - Corporate Trust Shares ............... -- -- 1,525 Shareholder Service Fees - Trust Shares ......................... -- -- -- Insurance and Other Fees ............... -- -- -- ------- ------ ------- Total Expenses ......................... 4,550 1,490 4,489 ------- ------ ------- Less: Investment Advisory Fees Waived ........................ (428) (46) (144) Administrator Fees Waived ......... (201) (92) (176) Shareholder Service Fees Waived - Institutional Shares ....... -- -- -- ------- ------ ------- Net Expenses .......................... 3,921 1,352 4,169 ------- ------ ------- Net Investment Income ..................... 27,359 8,494 13,772 ------- ------ ------- Net Realized Gain on Securities Sold ........................ -- -- 382 Net Change in Unrealized Appreciation on Investments ............ -- -- -- ------- ------ ------- Increase in Net Assets Resulting from Operations ........................ $27,359 $8,494 $14,154 ======= ====== =======
21
STATEMENTS OF CHANGES IN NET ASSETS (000) - -------------------------------------------------------------------------------- STI CLASSIC FUNDS FOR THE PERIOD ENDED NOVEMBER 30, 2002 (UNAUDITED) AND THE PERIOD ENDED MAY 31, 2002 CLASSIC CLASSIC INSTITUTIONAL CLASSIC INSTITUTIONAL U.S. GOVERNMENT SECURITIES INSTITUTIONAL SUPER SHORT SUPER SHORT SHORT-TERM BOND INCOME PLUS INCOME PLUS FUND FUND FUND -------------------------- -------------------------- --------------------------- 06/01/02- 05/14/02*- 06/01/02- 04/15/02**- 06/01/02- 04/11/02***- 11/30/02 05/31/02 11/30/02 05/31/02 11/30/02 05/31/02 ---------- ---------- ---------- ----------- ----------- ------------ Operations: Net Investment Income ............... $ 230 $ 18 $ 743 $ 68 $ 629 $ 56 Net Realized Gain (Loss) on Investments .................... 268 -- 85 -- 120 (5) Net Change in Unrealized Appreciation on Investments ....... 73 52 247 30 218 60 ------- ------- -------- -------- -------- ------- Increase in Net Assets from Operations ................... 571 70 1,075 98 967 111 ------- ------- -------- -------- -------- ------- Distributions to Shareholders: Net Investment Income: Institutional Shares .............. (230) (18) (802) (72) (704) (62) Corporate Trust Shares ............ -- -- -- -- -- -- Trust Shares ...................... -- -- (17) -- -- -- ------- ------- -------- -------- -------- ------- Total Distributions ............... (230) (18) (819) (72) (704) (62) ------- ------- -------- -------- -------- ------- Capital Transactions (1): Institutional Shares: Proceeds from Shares Issued ....... 5,353 16,107 85,934 55,308 68,459 32,057 Reinvestment of Cash Distributions 79 18 59 8 411 32 Cost of Shares Repurchased ........ (2,202) (1) (29,681) (21,612) (29,383) (4,000) ------- ------- -------- -------- -------- ------- Increase (Decrease) in Net Assets from Institutional Share Transactions ...................... 3,230 16,124 56,312 33,704 39,487 28,089 ------- ------- -------- -------- -------- ------- Corporate Trust Shares: Proceeds from Shares Issued ....... -- -- -- -- -- -- Cost of Shares Repurchased ........ -- -- -- -- -- -- ------- ------- -------- -------- -------- ------- Increase (Decrease) in Net Assets from Corporate Trust Share Transactions ...................... -- -- -- -- -- -- ------- ------- -------- -------- -------- ------- Trust Shares (2): Proceeds from Shares issued ....... -- -- 12,067 -- -- -- Reinvestment of Cash Distributions -- -- 7 -- -- -- Cost of Shares Repurchased .......... -- -- (2,635) -- -- -- ------- ------- -------- -------- -------- ------- Increase in Net Assets from Trust Share Transactions ..... -- -- 9,439 -- -- -- ------- ------- -------- -------- -------- ------- Increase (Decrease) in Net Assets from Share Transactions ......... 3,230 16,124 65,751 33,704 39,487 28,089 ------- ------- -------- -------- -------- ------- Total Increase (Decrease) in Net Assets .................. 3,571 16,176 66,007 33,730 39,750 28,138 ------- ------- -------- -------- -------- ------- Net Assets: Beginning of Period ............... 16,176 -- 33,730 -- 28,138 -- ------- ------- -------- -------- -------- ------- End of Period ..................... $19,747 $16,176 $ 99,737 $ 33,730 $ 67,888 $28,138 ======= ======= ======== ======== ======== =======
* Commenced operations on May 14, 2002. ** Commenced operations on April 15, 2002. *** Commenced operations on April 11, 2002. (1) See Note 8 in the Notes to Financial Statements for additional information. (2) The STI Classic Institutional Super Short Income Plus Fund Trust Shares commenced operations on October 3, 2002. Amounts designated as "--" are either $0 or round to $0. THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS. 22 - --------------------------------------------------------------------------------
CLASSIC CLASSIC CLASSIC INSTITUTIONAL INSTITUTIONAL INSTITUTIONAL CASH MANAGEMENT U.S. GOVERNMENT U.S. TREASURY MONEY MARKET SECURITIES MONEY SECURITIES MONEY FUND MARKET FUND MARKET FUND -------------------------- ----------------------------- -------------------------- 06/01/02- 06/01/01- 06/01/02- 06/01/01- 06/01/02- 06/01/01- 11/30/02 05/31/02 11/30/02 05/31/02 11/30/02 05/31/02 ----------- ----------- ------------ ----------- ------------ ---------- $ 27,359 $ 89,408 $ 8,494 $ 24,827 $ 13,772 $ 48,439 -- 3 -- -- 382 870 -- -- -- -- -- -- ----------- ----------- ----------- ----------- ----------- -------- 27,359 89,411 8,494 24,827 14,154 49,309 ----------- ----------- ----------- ----------- ----------- -------- (27,362) (89,408) (8,494) (24,874) (4,086) (11,535) -- -- -- -- (10,277) (36,903) -- -- -- -- -- -- ----------- ----------- ----------- ----------- ----------- -------- (27,362) (89,408) (8,494) (24,874) (14,363) (48,438) ----------- ----------- ----------- ----------- ----------- -------- 4,101,759 8,269,151 1,249,498 3,594,311 1,327,346 2,490,341 16,997 58,908 2,977 8,617 3,021 8,459 (4,409,724) (8,147,856) (1,206,883) (3,473,356) (1,353,191) (2,527,626) ----------- ----------- ----------- ----------- ----------- ----------- (290,968) 180,203 45,592 129,572 (22,824) (28,826) ----------- ----------- ----------- ----------- ----------- ----------- -- -- -- -- 1,770,590 3,633,178 -- -- -- -- (2,133,288) (3,132,415) ----------- ----------- ----------- ----------- ----------- ----------- -- -- -- -- (362,698) 500,763 ----------- ----------- ----------- ----------- ----------- ----------- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- ----------- ----------- ----------- ----------- ----------- ----------- -- -- -- -- -- -- ----------- ----------- ----------- ----------- ----------- ----------- (290,968) 180,203 45,592 129,572 (385,522) 471,937 ----------- ----------- ----------- ----------- ----------- ----------- (290,971) 180,206 45,592 129,525 (385,731) 472,808 ----------- ----------- ----------- ----------- ----------- ----------- 3,409,606 3,229,400 1,025,714 896,189 2,356,665 1,883,857 ----------- ----------- ----------- ----------- ----------- ----------- $ 3,118,635 $ 3,409,606 $ 1,071,306 $ 1,025,714 $ 1,970,934 $ 2,356,665 =========== =========== =========== =========== =========== ===========
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS. 23 FINANCIAL HIGHLIGHTS - -------------------------------------------------------------------------------- STI CLASSIC FUNDS FOR THE PERIOD ENDED NOVEMBER 30, 2002 (UNAUDITED) AND THE PERIODS ENDED MAY 31, FOR A SHARE OUTSTANDING THROUGHOUT THE PERIOD
NET REALIZED NET AND UNREALIZED NET ASSET NET ASSET VALUE, INVESTMENT GAINS DISTRIBUTIONS FROM VALUE, END BEGINNING OF PERIOD INCOME ON INVESTMENTS NET INVESTMENT INCOME OF PERIOD ------------------- ---------- -------------- --------------------- ---------- CLASSIC INSTITUTIONAL SHORT-TERM BOND FUND Institutional Shares 2002* $10.03 $0.12 $ 0.19 $(0.12) $10.22 2002 (1) 10.00 0.01 0.03 (0.01) 10.03 CLASSIC INSTITUTIONAL SUPER SHORT INCOME PLUS FUND Institutional Shares 2002* $ 2.00 $0.02 $ 0.01 $(0.02) $ 2.01 2002 (2) 2.00 0.01 -- (0.01) 2.00 Trust Shares 2002 (3) $ 2.02 $0.01 $(0.01) $(0.01) $ 2.01 CLASSIC INSTITUTIONAL U.S. GOVERNMENT SECURITIES SUPER SHORT INCOME PLUS FUND Institutional Shares 2002* $ 2.00 $0.02 $ 0.02 $(0.02) $ 2.02 2002 (4) 2.00 0.01 -- (0.01) 2.00
+ 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 six month period ended November 30, 2002. All ratios for the period have been annualized. (1) Commenced operations on May 14, 2002. All ratios have been annualized. (2) Commenced operations on April 15, 2002. All ratios have been annualized. (3) Commenced operations on October 3, 2002. All ratios have been annualized. (4) Commenced operations on April 11, 2002. All ratios have been annualized. Amounts designated as "--" are either $0 or round to $0. - --------------------------------------------------------------------------------
RATIO OF RATIO OF RATIO OF NET INVESTMENT NET ASSETS, RATIO OF NET INVESTMENT EXPENSES TO INCOME TO PORTFOLIO TOTAL END OF EXPENSES TO INCOME TO AVERAGE NET ASSETS AVERAGE NET ASSETS TURNOVER RETURN+ PERIOD (000) AVERAGE NET ASSETS AVERAGE NET ASSETS (EXCLUDING WAIVERS) (EXCLUDING WAIVERS) RATE -------- -------------- ------------------ ------------------ ------------------ ------------------- ---------- 3.14% $19,747 0.53% 2.44% 1.03% 1.94% 65% 0.41 16,176 0.57 2.60 1.07 2.10 0 1.66% $90,299 0.31% 2.07% 0.86% 1.52% 41% 0.30 33,730 0.36 2.44 0.91 1.89 30 (0.20)% $ 9,438 0.64% 1.72% 1.00% 1.36% 41% 2.18% $67,888 0.24% 2.07% 0.77% 1.54% 56% 0.32 28,138 0.30 2.42 0.83 1.89 34
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS. 25 FINANCIAL HIGHLIGHTS - -------------------------------------------------------------------------------- STI CLASSIC FUNDS FOR THE PERIOD ENDED NOVEMBER 30, 2002 (UNAUDITED) AND 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 TOTAL BEGINNING OF PERIOD INCOME NET INVESTMENT INCOME OF PERIOD RETURN+ ------------------- ---------- --------------------- ---------- -------- CLASSIC INSTITUTIONAL CASH MANAGEMENT MONEY MARKET FUND (A) Institutional Shares 2002** $1.00 $0.01 $(0.01) $1.00 0.87% 2002 1.00 0.03 (0.03) 1.00 2.68 2001 1.00 0.06 (0.06) 1.00 6.13 2000 1.00 0.05 (0.05) 1.00 5.56 1999* 1.00 0.02 (0.02) 1.00 1.58 For the years ended January 31: 1999 1.00 0.05 (0.05) 1.00 5.46 1998 1.00 0.06 (0.06) 1.00 5.66 CLASSIC INSTITUTIONAL U.S. GOVERNMENT SECURITIES MONEY MARKET FUND (B) Institutional Shares 2002** $1.00 $0.01 $(0.01) $1.00 0.82% 2002 1.00 0.03 (0.03) 1.00 2.61 2001 1.00 0.06 (0.06) 1.00 5.98 2000 1.00 0.05 (0.05) 1.00 5.39 1999* 1.00 0.02 (0.02) 1.00 1.56 For the years ended January 31: 1999 1.00 0.05 (0.05) 1.00 5.30 1998 1.00 0.05 (0.05) 1.00 5.52 CLASSIC INSTITUTIONAL U.S. TREASURY SECURITIES MONEY MARKET FUND Institutional Shares 2002** $1.00 $0.01 $(0.01) $1.00 0.78% 2002 1.00 0.02 (0.02) 1.00 2.28 2001 1.00 0.06 (0.06) 1.00 5.74 2000 1.00 0.05 (0.05) 1.00 5.25 1999 1.00 0.05 (0.05) 1.00 4.97 1998 1.00 0.05 (0.05) 1.00 5.50 Corporate Trust Shares 2002** $1.00 $0.01 $(0.01) $1.00 0.68% 2002 1.00 0.02 (0.02) 1.00 2.08 2001 1.00 0.05 (0.05) 1.00 5.53 2000(C) 1.00 0.05 (0.05) 1.00 5.02 + Returns are for the period indicated and have not been annualized. (The performance in the above table does not reflect the deduction of taxes the shareholder would pay on fund distributions or redemption of fund shares.) * For the period February 1, 1999 to May 31, 1999. All ratios for the period have been annualized. ** For the six month period ended November 30, 2002. All ratios for the period have been annualized. (A)On May 17, 1999, the Arbor Prime Obligations Fund exchanged all of its assets and certain liabilities for shares of the Classic Institutional Cash Management Money Market Fund. The Arbor Prime Obligations Fund is the accounting survivor in this transaction, and as a result, its basis of accounting for assets and liabilities and its operating results for the periods prior to May 17, 1999 have been carried forward in these financial highlights.
26 - --------------------------------------------------------------------------------
RATIO OF RATIO OF RATIO OF NET INVESTMENT NET ASSETS, RATIO OF NET INVESTMENT EXPENSES TO INCOME TO END OF EXPENSES TO INCOME TO AVERAGE NET ASSETS AVERAGE NET ASSETS PERIOD (000) AVERAGE NET ASSETS AVERAGE NET ASSETS (EXCLUDING WAIVERS) (EXCLUDING WAIVERS) ------------ ------------------ ------------------ ------------------- ------------------- $3,118,635 0.25% 1.73% 0.29% 1.69% 3,409,606 0.25 2.61 0.29 2.57 3,229,400 0.25 5.91 0.30 5.86 2,311,685 0.25 5.42 0.30 5.37 1,888,483 0.25 4.79 0.35 4.69 884,490 0.23 5.31 0.35 5.19 740,837 0.20 5.52 0.36 5.36 $1,071,306 0.26% 1.63% 0.29% 1.60% 1,025,714 0.27 2.49 0.30 2.46 896,189 0.26 5.72 0.29 5.69 650,626 0.25 5.27 0.29 5.23 617,089 0.25 4.73 0.36 4.62 688,031 0.23 5.18 0.36 5.05 789,410 0.20 5.39 0.37 5.22 $ 528,724 0.26% 1.49% 0.29% 1.46% 551,599 0.26 2.25 0.30 2.21 580,227 0.27 5.44 0.30 5.41 329,725 0.25 5.17 0.31 5.11 283,525 0.20 4.83 0.47 4.56 140,334 0.18 5.34 0.38 5.14 $1,442,210 0.46% 1.29% 0.49% 1.26% 1,805,066 0.46 2.11 0.50 2.07 1,303,630 0.46 5.38 0.50 5.34 1,138,541 0.45 4.93 0.49 4.89
(B) On May 24, 1999, the Arbor U.S. Government Securities Money Fund exchanged all of its assets and certain liabilities for shares of the Classic Institutional U.S. Government Securities Money Market Fund. The Arbor U.S. Government Securities Money Fund is the accounting survivor in this transaction, and as a result, its basis of accounting for assets and liabilities and its operating results for the periods prior to May 24, 1999 have been carried forward in these financial highlights. (C) Commenced operations on June 3, 1999. All ratios for the period have been annualized. THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS. 27 NOTES TO FINANCIAL STATEMENTS - -------------------------------------------------------------------------------- STI CLASSIC FUNDS NOVEMBER 30, 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 November 30, 2002: the Balanced Fund, the Capital Appreciation Fund, the Growth and Income Fund, the Information and Technology Fund, the International Equity Fund, the International Equity Index Fund, the Life Vision Aggressive Growth Fund, the Life Vision Growth and Income Fund, the Life Vision Moderate Growth Fund, the Mid-Cap Equity Fund, the Mid Cap Value Equity Fund, the Small Cap Growth Stock Fund, the Small Cap Value Equity Fund, the Tax Sensitive Growth Stock Fund, the Value Income Stock Fund, the Vantage Fund, (collectively the "Equity Funds"), the Florida Tax-Exempt Bond Fund, the Georgia Tax-Exempt Bond Fund, the High Income Fund, the Investment Grade Bond Fund, the Investment Grade Tax-Exempt Bond Fund, the Limited-Term Federal Mortgage Securities Fund, the Maryland Municipal Bond Fund, the Short-Term Bond Fund, the Short-Term U.S. Treasury Securities Fund, the Strategic Income Fund, the U.S. Government Securities Fund, the Virginia Intermediate Municipal Bond Fund, the Virginia Municipal Bond Fund, (collectively the "Fixed Income Funds"), the Prime Quality Money Market Fund, the Tax-Exempt Money Market Fund, the U.S. Government Securities Money Market Fund, the U.S. Treasury Money Market Fund, the Virginia Tax-Free Money Market Fund (collectively the "Retail Money Market Funds"), the Classic Institutional Short-Term Bond Fund, Classic Institutional Super Short Income Plus Fund, Classic Institutional U.S. Government Securities Super Short Income Plus Fund, 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" or the "Funds"). The assets of each Fund are segregated, and a shareholder's interest is limited to the fund in which shares are held. Each Fund's prospectus provides a description of the Fund's investment objectives, policies and strategies. The financial statements presented herein are those of the Institutional Funds. The financial statements of the Equity Funds, the Fixed Income Funds and the Retail Money Market Funds are not presented herein, but are presented separately. 2. Significant Accounting Policies: The following is a summary of significant accounting policies followed by the Trust: SECURITY VALUATION -- Investment securities held by the Classic Institutional Cash Management Money Market Fund, Classic Institutional U.S. Government Securities Money Market Fund, and Classic Institutional U.S. Treasury Securities Money Market Fund 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. Investment securities held by the Classic Institutional Short-Term Bond Fund, Classic Institutional Super Short Income Plus Fund, and Classic Institutional U.S. Government Securities Super Short Income Plus Fund that are listed on a securities exchange for which market quotations are available are valued at the last quoted sales price each business day. If there is no such reported sale, these securities and unlisted securities for which market quotations are readily available are valued at the most recently quoted bid price. Securities for which current market quotations are not readily available, of which 28 - -------------------------------------------------------------------------------- (UNAUDITED) there are none as of November 30, 2002, are valued at their fair value as determined in good faith by, or in accordance with procedures adopted by, the Board of Trustees. 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 that the principal owned can be recovered through demand, or the maturity of the security and are included in interest income. REPURCHASE AGREEMENTS -- In connection with transactions involving repurchase agreements, a third party custodian bank takes possession of the underlying securities ("collateral"), the value of which exceeds the principal amount of the repurchase transaction, including accrued interest. In the event of default on the obligation to repurchase, each Fund has the right to liquidate the collateral and apply the proceeds in satisfaction of the obligation. In the event of default or bankruptcy by the counterparty to the agreement, realization and/or retention of the collateral or proceeds may be subject to legal proceedings. NET ASSET VALUE PER SHARE -- The net asset value per share of each Fund is calculated each business day, by dividing the total value of each Fund's assets, less liabilities, by the number of shares outstanding. OTHER -- Expenses that are directly related to a specific Fund are charged to that Fund. Class specific expenses are borne by that class. Other operating expenses of the Trust are pro-rated to the Funds on the basis of relative net assets. Fund expenses are pro-rated to the respective classes on the basis of relative net assets. DISTRIBUTIONS TO SHAREHOLDERS -- Distributions from net investment income of each of the Funds are declared on each business day and paid to shareholders on a monthly basis. Any net realized capital gains on sales of securities are distributed to shareholders at least annually. USE OF ESTIMATES-- The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America 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. 3. Transactions with Affiliates: Certain officers of the Trust are also officers of SEIInvestments Global Funds Services (formerly SEI Investments Mutual Fund Services, "the Administrator") and/or SEI Investments Distribution Co. (the "Distributor"). Such officers are paid no fees by the Trust for serving as officers of the Trust. The Trust and the Distributor are parties to a Distribution Agreement dated November 21, 1995. The Distributor does not receive any fees for its distribution services provided under this agreement. 29 NOTES TO FINANCIAL STATEMENTS (continued) - -------------------------------------------------------------------------------- STI CLASSIC FUNDS NOVEMBER 30, 2002 The Trust has 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 period ended November 30, 2002, SunTrust Robinson Humphrey received fees for the following funds: FEES --------- Institutional Super Short Income Plus Fund .. $ 2,828 Institutional U.S. Government Securities Super Short Income Plus Fund ............. 2,133 Institutional Cash Management Money Market Fund .............................. 68,242 Institutional U.S. Government Securities Money Market Fund ........................ 37,040 Institutional U.S. Treasury Securities Money Market Fund ........................ 354,030 4. Administration, Shareholder, and Transfer Agency Servicing Agreements: The Trust and the Administrator are parties to an Administration Agreement dated May 29, 1995, as amended November 19, 1997 and March 1, 1999, under which the Administrator provides administrative services for an annual fee (expressed as a percentage of the combined average daily net assets of the Trust and STI Classic Variable Trust) of: 0.12% up to $1 billion, 0.09% on the next $4 billion, 0.07% on the next $3 billion, 0.065% on the next $2 billion and 0.06% for over $10 billion. The Classic Institutional U.S. Treasury Securities Money Market Fund has adopted a Shareholder Services Plan for the Corporate Trust Shares. The Fund pays the Distributor a monthly shareholder services fee at an annual rate of 0.20% of the average daily net assets of the Fund's Corporate Trust Shares, which may be used by the Distributor to provide compensation to service providers that have agreed to provide shareholder support services for their customers who own Corporate Trust Shares of the Fund. The Classic Institutional Short-Term Bond, Classic Institutional Super Short Income Plus, and Classic Institutional U.S. Government Securities Super Short Income Plus Funds have adopted a Shareholder Services Plan whereby each Fund pays SunTrust Bank ("SunTrust") a monthly shareholder services fee at an annual rate of 0.25% of the average daily net assets of the Funds, which may be used by SunTrust to provide compensation to service providers that have agreed to provide shareholder support services for their customers who own shares of the Fund. Currently SunTrust is waiving its entire fee for the Institutional shares, and a portion of the fee for the Trust shares. These fee waivers are voluntary and may be terminated at any time. 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. 30 - -------------------------------------------------------------------------------- (UNAUDITED) The Trust and SunTrust Securities Inc. ("STS"), a wholly-owned subsidiary of SunTrust Banks, Inc., are parties to an agreement under which STSprovides shareholder support and other account-related services. Shareholder service fees (including out of pocket expenses) paid to STS for the year or period ended November 30, 2002 were: FEES -------- Classic Institutional Short-Term Bond Fund ....... $ 254 Classic Institutional Super Short Income Plus Fund 970 Classic Institutional U.S. Government Securities Super Short Income Plus Fund .................. 818 Classic Institutional Cash Management Money Market Fund ................................... 42,712 Classic Institutional U.S. Government Securities Money Market Fund ............................. 14,006 Classic Institutional U.S. Treasury Securities Money Market Fund ............................. 27,684 5. Investment Advisory and Custodian Agreements: The Trust and Trusco Capital Management, Inc. (the "Investment Adviser") have entered into an advisory agreement dated June 15, 1993, and last amended as of April 8, 2002. Under terms of the respective agreements, the Funds are charged the following annual fees based upon average daily net assets: MAXIMUM ANNUAL ADVISORY FEE ------------ Classic Institutional Short-Term Bond Fund ............... 0.60% Classic Institutional Super Short Income Plus Fund ....... 0.50% Classic Institutional U.S. Government Securities Super Short Income Plus Fund .......................... 0.40% Classic Institutional Cash Management Money Market Fund ..................................... 0.20% Classic Institutional U.S. Government Securities Money Market Fund ..................................... 0.20% Classic Institutional U.S. Treasury Securities Money Market Fund ..................................... 0.20% The Investment Adviser and the Administrator have voluntarily agreed to waive all or a portion of their fees (and to reimburse Funds expenses) in order to limit operating expenses. Fee waivers and expense reimbursements are voluntary and may be terminated at any time. SunTrust Bank (the "Custodian") acts as custodian for the Funds. Fees of the Custodian are paid on the basis of the net assets 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. Investment Transactions: The cost of purchases and the proceeds from sales of securities, excluding short-term investments and U.S. Government securities, for the period ended November 30, 2002, were as follows: PURCHASES SALES (000) (000) ---------- ------- Classic Institutional Short-Term Bond Fund .......................... $ 7,059 $ 200 Classic Institutional Super Short Income Plus Fund .................. 21,331 2,398 Classic Institutional U.S. Government Super Short Income Plus Fund ....... 5,179 5,249 The cost of purchases and proceeds from sales of U.S. Government securities were as follows: PURCHASES SALES (000) (000) --------- ------- Classic Institutional Short-Term Bond Fund .......................... $ 9,483 $9,217 Classic Institutional Super Short Income Plus Fund ................... 11,907 7,255 Classic Institutional U.S. Government Securities Super Short Income Plus Fund .......................... 17,123 5,083 31 NOTES TO FINANCIAL STATEMENTS (continued) - -------------------------------------------------------------------------------- STI CLASSIC FUNDS NOVEMBER 30, 2002 7. Federal Tax Information: FEDERAL INCOME TAXES -- It is each Fund's intention to continue to qualify as a regulated investment company for Federal income tax purposes and distribute all of its taxable income and net capital gains. Accordingly, no provisions for Federal income taxes are required. The Institutional Super Short Income Plus Fund and the Institutional U.S. Government Securities Super Short Income Plus Fund had post-October losses of $4,095 and $10,711 respectively. Post-October losses represent losses realized on investment transactions from November 1, 2001 through May 31, 2002, that in accordance with Federal income tax regulations the Funds have elected to defer and treat as having arisen in the following year. At November 30, 2002, the total cost of securities and the net realized gains or losses on securities sold for Federal income tax purposes was not different from amounts reported for financial reporting purposes. The aggregate gross unrealized appreciation and depreciation for securities held by the funds at November 30, 2002, were as follows: AGGREGATE AGGREGATE GROSS GROSS NET UNREALIZED UNREALIZED UNREALIZED APPRECIATION DEPRECIATION APPRECIATION (000) (000) (000) --------- ------------ ------------ Classic Institutional Short-Term Bond Fund $162 $(37) $125 Classic Institutional Super Short Income Plus Fund 353 (76) 277 Classic Institutional U.S. Government Securities Super Short Income Plus Fund 310 (32) 278 32 - -------------------------------------------------------------------------------- (UNAUDITED) 8. Capital Share Transactions Capital Share Transactions for the funds were as follows (000):
CLASSIC CLASSIC CLASSIC INSTITUTIONAL INSTITUTIONAL INSTITUTIONAL SHORT-TERM SUPER SHORT U.S. GOVERNMENT SECURITIES BOND INCOME PLUS SUPER SHORT INCOME PLUS FUND* FUND** FUND*** ------------------------ ------------------------- -------------------------- 06/01/02- 05/14/02- 06/01/02- 04/15/02- 06/01/02- 04/11/02- 11/30/02 05/31/02 11/30/02 05/31/02 11/30/02 05/31/02 ---------- --------- ---------- --------- ----------- --------- Shares Issued and Redeemed: Institutional Shares: Shares Issued 530 1,610 42,744 27,654 33,970 16,028 Shares Issued in Lieu of Cash Distributions 8 2 29 4 203 16 Shares Redeemed (217) -- (14,759) (10,806) (14,563) (2,000) ---------- --------- ---------- --------- ---------- --------- Net Institutional Share Transactions 321 1,612 28,014 16,852 19,610 14,044 ---------- --------- ---------- --------- ---------- --------- Trust Shares: Shares Issued -- -- 6,003 -- -- -- Shares Issued in Lieu of Cash Distributions -- -- 3 -- -- -- Shares Redeemed -- -- (1,310) -- -- -- ---------- --------- ---------- --------- ---------- --------- Net Trust Share Transactions -- -- 4,696 -- -- -- ---------- --------- ---------- --------- ---------- --------- Net Change in Capital Shares 321 1,612 32,710 16,852 19,610 14,044 ========== ========= ========== ========= ========== =========
* Commenced operations on May 14, 2002. ** Commenced operations on April 15, 2002. *** Commenced operations on April 11, 2002. 33 NOTES TO FINANCIAL STATEMENTS (continued) - -------------------------------------------------------------------------------- STI CLASSIC FUNDS NOVEMBER 30, 2002
CLASSIC CLASSIC CLASSIC INSTITUTIONAL INSTITUTIONAL INSTITUTIONAL CASH MANAGEMENT U.S. GOVERNMENT U.S. TREASURY MONEY MARKET SECURITIES MONEY SECURITIES MONEY FUND MARKET FUND MARKET FUND ------------------------ -------------------------- ------------------------- 06/01/02- 06/01/01- 06/01/02- 06/01/01- 06/01/02- 06/01/01- 11/30/02 05/31/02 11/30/02 05/31/02 11/30/02 05/31/02 ---------- --------- ----------- --------- ---------- --------- Shares Issued and Redeemed: Institutional Shares: Shares Issued 4,101,759 8,269,151 1,249,498 3,594,312 1,327,346 2,490,341 Shares Issued in Lieu of Cash Distributions 16,997 58,908 2,977 8,616 3,021 8,459 Shares Redeemed (4,409,724) (8,147,856) (1,206,883) (3,473,356) (1,353,191) (2,527,626) ---------- ---------- ----------- ---------- ---------- ---------- Net Institutional Share Transactions (290,968) 180,203 45,592 129,572 (22,824) (28,826) ---------- ---------- ----------- ---------- ---------- ---------- Corporate Trust Shares: Shares Issued -- -- -- -- 1,770,590 3,633,178 Shares Redeemed -- -- -- -- (2,133,288) (3,132,415) ---------- ---------- ----------- ---------- ---------- ---------- Net Corporate Trust Share Transactions -- -- -- -- (362,698) 500,763 ---------- ---------- ----------- ---------- ---------- ---------- Net Change in Capital Shares (290,968) 180,203 45,592 129,572 (385,522) 471,937 ========== ========== =========== ========== ========== ==========
9. Concentration of Credit Risk: The Classic Institutional Cash Management Money Market Fund invests in high quality money market instruments issued by corporations and the U.S. Government and rated by one or more nationally recognized statistical rating organizations, or, if not rated, are determined by the Investment Adviser to be of comparable quality. The Classic Institutional U.S. Government Securities Money Market Fund invests in U.S. Treasury obligations, U.S. Government subsidiary corporation securities which are backed by the full faith and credit of the U.S. Government and repurchase agreements with approved dealers collateralized by U.S. Treasury securities and U.S. Government subsidiary corporation securities. The Classic Institutional U.S. Treasury Securities Money Market Fund invests in U.S. Treasury Obligations, which are backed by the full faith and credit of the U.S. Government and repurchase agreements with approved dealers collateralized by U.S. Treasury securities. The Classic Institutional Short-Term Bond Fund invests primarily in a diversified portfolio of short- to medium-term investment grade U.S. Treasury and investment grade corporate debt, mort- gage-backed and asset backed securities. The Classic Institutional Super Short Income Plus Fund invests primarily in short duration, investment grade money market, fixed income securities, repurchase agreements and other mutual funds. The Classic Institutional U.S. Government Securities Super Short Income Plus Fund invests primarily in short-term obligations issued or guaranteed by the U.S. Government or its agencies or instrumentalities, including mortgage-backed securities. 34 NOTES TO FINANCIAL STATEMENTS (concluded) - -------------------------------------------------------------------------------- STI CLASSIC FUNDS NOVEMBER 30, 2002 (Unaudited) 10. Securities Lending Each Fund may lend portfolio securities to brokers, dealers and other financial organizations that meet capital and other credit requirements or other criteria established by the Trust's Board of Trustees. These loans may not exceed 33 1/3% of the total asset value of the Fund (including the loan collateral). No Fund will lend portfolio securities to its investment adviser or its affiliates unless it has applied for and received specific authority to do so from the SEC. Loans of portfolio securities will be fully collateralized by cash. The value of the collateral is at least equal to the market value of the securities loaned. However, due to market fluctuations during the day, the value of securities loaned on a particular day may, during the course of the day, exceed the value of collateral. On each business day, the amount of collateral is adjusted based on the prior day's market fluctuations and the current day's lending activity. Income from lending activity is determined by the amount of interest earned on collateral, less any amounts payable to the borrowers of the securities and the lending agent. Lending securities involves certain risks, including the risk that the Fund may be delayed or prevented from recovering the collateral if the borrower fails to return the securities. Cash collateral received in connection with securities lending is invested in short-term investments by the lending agent. These investments include repurchase agreements*; which are collateralized by United States Treasury and Government Agency securities, and high-quality, short-term instruments**, such as floating rates, commercial paper, certificates of deposit and private placements with an average weighted maturity date not to exceed 60 days and an effective maturity date not to exceed 397 days. The market value of securities on loan at November 30, 2002 and the value of collateral at November 30, 2002, with respect to such loans were as follows (000): MARKET MARKET VALUE OF VALUE OF SECURITIES LOANED COLLATERAL ----------------- ---------- Classic Institutional Short-Term Bond Fund $6,240 $6,369 Classic Institutional Super Short Income Plus Fund 2,566 2,633 * At November 30, 2002, the collateral consisted of repurchase agreements yielding 1.37% to 1.40% with J.P. Morgan and Morgan Stanley Dean Witter. ** At November 30, 2002, the effective maturity dates for the short-term instruments ranged from 12/03/02 to 06/05/03. 35 NOTES - -------------------------------------------------------------------------------- NOTES - -------------------------------------------------------------------------------- INVESTMENT ADVISER Trusco Capital Management, Inc. STI Classic Funds are not deposits, are not insured or guaranteed by the FDIC or any other government agency, and are not endorsed by and do not constitute obligations of SunTrust Banks, Inc. or any other of its affiliates. Investment in the Funds involves risk, including the possible loss of principal. There is no guarantee that any STI Classic Fund will achieve its investment objective. The STI Classic Funds are advised by an affiliate of SunTrust Banks, Inc. DISTRIBUTOR SEI Investments Distribution Co. This information must be preceded or accompanied by a current prospectus for each Fund described. STI-SA-004-0300 -----END PRIVACY-ENHANCED MESSAGE-----