-----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, SQc8nz71R3TWaOzaQGMHE7JHZokLAhVbIMClick7iZQCPInHW0o/yaWjuxkUnuNl eT4NQcLomqxMqHJmVfJaKw== 0000935069-03-000093.txt : 20030131 0000935069-03-000093.hdr.sgml : 20030131 20030131124741 ACCESSION NUMBER: 0000935069-03-000093 CONFORMED SUBMISSION TYPE: N-30D PUBLIC DOCUMENT COUNT: 1 CONFORMED PERIOD OF REPORT: 20021130 FILED AS OF DATE: 20030131 EFFECTIVENESS DATE: 20030131 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: 03533944 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 stifixedincome11_02.txt STI CLASSIC FIXED INCOME FUNDS NOVEMBER 2002 SEMI-ANNUAL ................................................................ FINANCIAL REPORT ................................................................ STI CLASSIC FIXED INCOME FUNDS ................................................................ A Family of Mutual Funds ................................................................ November 30, 2002 [STI Classic Logo Omitted] 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 STATEMENT OF NET ASSETS - -------------------------------------------------------------------------------- STI CLASSIC FIXED INCOME FUNDS NOVEMBER 30, 2002 FLORIDA TAX-EXEMPT BOND FUND - -------------------------------------------------------------------------------- FACE AMOUNT (000) VALUE (000) - -------------------------------------------------------------------------------- MUNICIPAL BONDS (97.5%) FLORIDA (84.2%) Brevard County, Health Facilities Authority, Holmes Regional Medical Center Project, RB, MBIA Callable 10/01/03 @ 102 5.700%, 10/01/08 $3,000 $ 3,159 Brevard County, School Board, COP, AMBAC Callable 07/01/12 @ 100 5.500%, 07/01/17 1,360 1,476 5.500%, 07/01/18 3,015 3,250 Brevard County, Utility Authority, RB, FGIC (H) Callable 03/01/12 @ 100 5.250%, 03/01/13 1,000 1,093 5.250%, 03/01/14 1,000 1,082 Broward County, Port Facilities Authority, Ser C, RB, AMT, MBIA 5.375%, 09/01/08 3,360 3,666 Clearwater, Spring Training Facility, RB, MBIA 5.375%, 03/01/17 660 722 5.375%, 03/01/18 725 789 5.375%, 03/01/19 760 821 5.375%, 03/01/20 805 864 Dade County, Aviation Authority, Ser A, RB, AMBAC Callable 10/01/05 @ 102 6.000%, 10/01/09 500 556 Dade County, Aviation Authority, Ser B, RB, AMT, MBIA Callable 01/06/03 @ 102 6.600%, 10/01/22 825 844 Dade County, Seaport Project, GO, MBIA 6.500%, 10/01/09 1,000 1,182 Dade County, Ser CC, GO, AMBAC 7.125%, 10/01/15 1,000 1,260 Dade County, Water & Sewer Authority, RB, FGIC Callable 10/01/03 @ 102 5.000%, 10/01/07 2,000 2,090 Daytona Beach, Water & Sewer Authority, Ser 1978, RB, ETM Callable 11/15/02 @ 101.25 6.750%, 11/15/07 770 881 Deerfield Beach, Water & Sewer Authority, RB, FGIC 6.125%, 10/01/06 250 272 Florida State, Board of Education, Capital Outlay, Ser B, GO Callable 06/01/11 @ 101 5.500%, 06/01/15 3,000 3,295 - -------------------------------------------------------------------------------- FACE AMOUNT (000) VALUE (000) - -------------------------------------------------------------------------------- Florida State, Board of Education, Capital Outlay, Ser B, GO, FGIC Callable 06/01/12 @ 101 5.375%, 06/01/18 $2,130 $ 2,283 Florida State, Board of Education, Capital Outlay, Ser C, GO Callable 06/01/05 @ 101 5.400%, 06/01/10 2,745 2,952 Florida State, Board of Education, Capital Outlay, Ser C, GO, ETM Callable 01/06/03 @ 100 7.100%, 06/01/07 190 192 Florida State, Board of Education, Capital Outlay, Ser D, GO Callable 06/01/10 @ 101 5.625%, 06/01/15 1,235 1,349 5.500%, 06/01/14 790 857 Florida State, Board of Education, Lottery Revenue, Ser A, RB, FGIC Callable 07/01/10 @ 101 6.000%, 07/01/12 1,295 1,482 Florida State, Board of Education, Lottery Revenue, Ser B, RB, FGIC Callable 07/01/10 @ 101 5.500%, 07/01/12 4,050 4,502 Florida State, Boynton Beach Utility System, RB, FGIC 5.500%, 11/01/16 2,810 3,138 5.375%, 11/01/14 2,535 2,815 Florida State, Finance Department of General Services, Department of Environmental Protection, Preservation 2000 Project, Ser A, RB, MBIA 6.000%, 07/01/06 1,000 1,119 Florida State, Housing Financing Authority, Homeowner Mortgage, Ser 7, RB, AMT, FSA Callable 07/01/09 @ 100 5.200%, 01/01/31 875 912 Hillsborough County, Industrial Development Authority, University Community Hospital, RB, MBIA 6.500%, 08/15/19 145 175 Jacksonville, Electric Authority, Electrical Systems, Ser 3-A, RB Callable 10/01/07 @ 101 5.250%, 10/01/13 1,000 1,082 2 - -------------------------------------------------------------------------------- (UNAUDITED) - -------------------------------------------------------------------------------- FACE AMOUNT (000) VALUE (000) - -------------------------------------------------------------------------------- Jacksonville, Sales Tax Revenue, RB, AMBAC Callable 10/01/11 @ 100 5.500%, 10/01/13 $1,435 $ 1,593 5.500%, 10/01/14 1,200 1,321 5.500%, 10/01/15 1,550 1,696 Jupiter, Community Center Project, GO 5.500%, 07/01/21 1,235 1,342 Lakeland, Electric & Water Authority, First Lien, Ser C, RB, FSA 6.050%, 10/01/07 1,000 1,144 Lee County, Industrial Development Authority, Bonita Springs Utilities Project, RB, AMT, MBIA Callable 11/01/06 @ 101 5.750%, 11/01/10 1,480 1,582 Lee County, Transportation Facility, Ser A, RB, AMBAC Callable 10/01/11 @ 100 5.500%, 10/01/13 2,000 2,220 Leon County, Southgate Educational Facilities Authority, COP, ETM 9.000%, 09/01/14 2,480 3,555 Miami, Parking Facilities Authority, RB, MBIA 5.250%, 10/01/15 1,000 1,094 Orange County, Health Facilities Authority, Ser A, RB, ETM, MBIA 6.250%, 10/01/07 1,120 1,296 Orange County, Health Facilities Authority, Ser C, RB, ETM, MBIA 6.250%, 10/01/16 4,855 5,829 Orlando, Aviation Authority, Airport Facilities, RB, AMT, FGIC 5.500%, 10/01/17 1,810 1,953 5.250%, 10/01/13 725 778 Orlando, Aviation Authority, Airport Facilities, Ser A, RB, AMT, AMBAC Callable 10/01/03 @ 102 5.400%, 10/01/06 1,340 1,393 Orlando, Utilities Commission Water & Sewer Authority, Sub-Ser D, RB, ETM 6.750%, 10/01/17 5,385 6,585 Osceola County, Tourist Development Tax Authority, Ser A, RB, FGIC Callable 10/01/12 @ 100 5.500%, 10/01/15 1,000 1,103 - -------------------------------------------------------------------------------- FACE AMOUNT (000) VALUE (000) - -------------------------------------------------------------------------------- Palm Beach County, Criminal Justice Facility, RB 5.000%, 06/01/15 $1,865 $ 1,992 Palm Beach County, Land Acquisition Program Authority, Ser A, GO Callable 06/01/11 @ 100 5.500%, 06/01/16 1,200 1,305 5.375%, 06/01/14 1,050 1,144 Palm Beach County, School Board Authority, Ser C, COP, FSA Callable 08/01/12 @ 100 5.500%, 08/01/14 2,735 3,031 5.500%, 08/01/19 5,305 5,691 Palm Beach County, School Board, COP, Ser E, AMBAC 5.375%, 08/01/15 3,690 4,078 Palm Beach County, School District, GO, MBIA 5.000%, 08/01/07 3,600 3,946 Palm Beach County, Solid Waste Authority, Ser A, RB, AMBAC 6.000%, 10/01/10 6,000 6,906 Palm Beach County, Solid Waste Authority, Ser A, RB, ETM, AMBAC 6.000%, 10/01/09 300 349 Pensacola, Airport Authority, Ser A, RB, AMT, MBIA 6.250%, 10/01/09 505 577 Pensacola, Airport Authority, Ser A, RB, AMT, MBIA Callable 10/01/08 @ 102 6.000%, 10/01/12 1,075 1,210 Plant City, Utility Systems Authority, RB, MBIA 6.000%, 10/01/15 400 468 Polk County, Utility Systems Authority, RB, ETM, FGIC 6.000%, 10/01/08 2,250 2,525 Sarasota County, Utility Systems Authority, Ser C, RB, FGIC Callable @ 100 10/01/12 5.250%, 10/01/20 1,500 1,560 5.250%, 10/01/19 2,785 2,920 South Broward, Hospital District Authority, RB, AMBAC Callable 05/01/03 @ 102 7.500%, 05/01/08 1,000 1,044 3 STATEMENT OF NET ASSETS - -------------------------------------------------------------------------------- STI CLASSIC FIXED INCOME FUNDS NOVEMBER 30, 2002 FLORIDA TAX-EXEMPT BOND FUND--CONCLUDED - -------------------------------------------------------------------------------- FACE AMOUNT (000) VALUE (000) - -------------------------------------------------------------------------------- Tampa, Allegany Health Systems Authority, St Mary's Hospital, RB, ETM, MBIA Callable 12/01/03 @ 102 5.000%, 12/01/12 $7,280 $ 7,502 Tampa, Guaranteed Entitlement, RB, AMBAC 6.000%, 10/01/07 2,190 2,501 6.000%, 10/01/08 1,500 1,722 6.000%, 10/01/18 500 575 Tampa, Ser A, RB, AMBAC Callable 10/01/11 @ 101 5.375%, 10/01/14 1,640 1,800 Tampa, Utility Tax & Special Revenue Authority, RB, AMBAC 6.000%, 10/01/06 2,385 2,688 -------- 140,178 -------- PUERTO RICO (13.3%) Puerto Rico Commonwealth, Highway & Transportation Authority, Ser A, RB, AMBAC 5.500%, 07/01/14 2,995 3,390 Puerto Rico Commonwealth, Highway & Transportation Authority, Ser E, RB, FSA 5.500%, 07/01/17 1,160 1,307 Puerto Rico Commonwealth, Highway & Transportation Authority, Ser Z, RB, MBIA 6.250%, 07/01/14 2,100 2,517 Puerto Rico Commonwealth, Public Buildings Authority, Government Facilities, Ser A, RB, AMBAC 6.250%, 07/01/13 1,000 1,194 Puerto Rico Commonwealth, Public Financial Corporation, Commonwealth Appropriation Committee, Ser E, RB, AMBAC 5.500%, 08/01/27 3,000 3,270 Puerto Rico Commonwealth, Public Improvements Project, GO, FSA 5.500%, 07/01/16 2,500 2,823 Puerto Rico Commonwealth, Public Improvements Project, Ser A, GO, FGIC 5.500%, 07/01/11 1,000 1,126 - -------------------------------------------------------------------------------- FACE AMOUNT (000)/SHARES VALUE (000) - -------------------------------------------------------------------------------- Puerto Rico Commonwealth, Public Improvements Project, Ser A, GO, MBIA 5.500%, 07/01/18 $1,000 $ 1,121 5.500%, 07/01/21 5,000 5,479 -------- 22,227 -------- Total Municipal Bonds (Cost $155,979) 162,405 -------- CASH EQUIVALENT (2.6%) SEI Institutional Tax Free Fund 4,297,563 4,298 -------- Total Cash Equivalent (Cost $4,298) 4,298 -------- Total Investments (100.1%) (Cost $160,277) 166,703 -------- OTHER ASSETS AND LIABILITIES (-0.1%) Investment Advisory Fee Payable (83) Distribution Fee Payable (18) Administration Fee Payable (9) Other Assets and Liabilities (130) -------- Total Other Assets and Liabilities, Net (240) -------- NET ASSETS: Paid in Capital -- Trust Shares (unlimited authorization -- no par value) based on 11,476,744 outstanding shares of beneficial interest 121,445 Paid in Capital -- Investor Shares (unlimited authorization -- no par value) based on 544,986 outstanding shares of beneficial interest 5,803 Paid in Capital -- Flex Shares (unlimited authorization -- no par value) based on 2,915,394 outstanding shares of beneficial interest 32,052 Undistributed net investment income 9 Accumulated net realized gain on investments 728 Net unrealized appreciation on investments 6,426 -------- Total Net Assets (100.0%) $166,463 ======== Net Asset Value, Offering and Redemption Price Per Share -- Trust Shares $11.14 ======== Net Asset Value and Redemption Price Per Share -- Investor Shares $11.14 ======== Maximum Offering Price Per Share -- Investor Shares ($11.14 / 96.25%) $11.57 ======== Net Asset Value, Offering and Redemption Price Per Share -- Flex Shares (1) $11.16 ======== THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS. FOR DESCRIPTIONS OF ABBREVIATIONS, PLEASE SEE PAGE 40. 4 - -------------------------------------------------------------------------------- (UNAUDITED) GEORGIA TAX-EXEMPT BOND FUND - -------------------------------------------------------------------------------- FACE AMOUNT (000) VALUE (000) - -------------------------------------------------------------------------------- MUNICIPAL BONDS (95.7%) GEORGIA (95.7%) Atlanta & Fulton County, Recreational Authority, Park Improvement, RB, AMBAC Callable 12/01/10 @ 101 5.500%, 12/01/13 $1,005 $ 1,107 5.250%, 12/01/16 1,050 1,117 Atlanta, Airport Facilities Authority, RB, AMBAC 6.500%, 01/01/06 1,000 1,118 Atlanta, Water & Sewer Authority, RB, ETM 6.000%, 01/01/11 1,000 1,156 Augusta, Water & Sewer Authority, RB, FSA Callable 10/01/12 @ 100 5.250%, 10/01/14 1,640 1,768 Bibb County, GO 7.000%, 01/01/04 985 1,042 Brunswick, Water & Sewer Authority, RB, MBIA 6.100%, 10/01/14 1,000 1,170 Cherokee County, School Systems, GO Callable 08/01/11 @ 101 5.250%, 08/01/15 1,000 1,072 Clarke County, Hospital Authority, Athens Regional Medical Control Project, RB, MBIA 5.375%, 01/01/07 1,425 1,569 Clarke County, Hospital Authority, Athens Regional Medical Control Project, RB, MBIA Callable 01/01/12 @ 101 5.375%, 01/01/16 585 622 5.375%, 01/01/17 870 919 Clayton County, Development Authority Revenue, Tuff Archives Project, Ser A, RB, MBIA Callable 07/01/12 @ 100 5.250%, 07/01/15 790 847 5.250%, 07/01/16 875 931 Clayton County, Water & Sewer Authority, RB, AMBAC Callable 05/01/06 @ 102 5.350%, 05/01/09 800 872 Cobb County & Marietta, Water Authority, RB Callable 11/01/12 @ 102 5.500%, 11/01/13 1,560 1,762 Cobb County, Water & Sewer Authority, RB Callable 07/01/04 @ 102 5.125%, 07/01/06 1,000 1,067 - -------------------------------------------------------------------------------- FACE AMOUNT (000) VALUE (000) - -------------------------------------------------------------------------------- Cobb-Marietta County, Coliseum & Expo Project, RB, MBIA 5.500%, 10/01/12 $ 940 $ 1,053 Coweta County, Development Authority, Newnan Water, Sewer & Light Community Project, RB, AMBAC Callable 01/01/10 @ 101 5.250%, 01/01/14 1,700 1,816 Coweta County, Water & Sewer Authority, RB Callable 06/01/11 @ 102 5.250%, 06/01/14 395 429 5.000%, 06/01/12 1,470 1,587 Dalton, Utilities Authority, RB, MBIA 6.000%, 01/01/08 3,240 3,671 DeKalb County, Development Authority, Emory University Project, Ser A, RB 5.375%, 11/01/05 1,650 1,801 DeKalb County, Development Authority, Emory University Project, Ser A, RB Callable 11/01/05 @ 101 5.200%, 11/01/08 500 544 DeKalb County, School District, Ser A, GO 6.250%, 07/01/11 1,500 1,762 DeKalb County, Special Recreation Tax District, GO 5.000%, 12/01/12 2,000 2,174 5.000%, 12/01/13 750 814 DeKalb County, Water & Sewer Authority, RB Callable 10/01/10 @ 101 5.250%, 10/01/12 1,000 1,099 Douglasville - Douglas County, Water & Sewer Authority, RB, AMBAC 5.625%, 06/01/15 1,390 1,565 Downtown Smyrna, Development Authority, RB, AMBAC 5.250%, 02/01/14 1,050 1,147 Fayette County, Public Facility Authority, Criminal Justice Center Project, RB Callable 06/01/11 @ 101 5.000%, 06/01/15 940 983 5 STATEMENT OF NET ASSETS - -------------------------------------------------------------------------------- STI CLASSIC FIXED INCOME FUNDS NOVEMBER 30, 2002 GEORGIA TAX-EXEMPT BOND FUND--CONTINUED - -------------------------------------------------------------------------------- FACE AMOUNT (000) VALUE (000) - -------------------------------------------------------------------------------- Fayette County, Public Facility Authority, Criminal Justice Center Project, RB Prerefunded @ 101 (F) 6.250%, 06/01/10 $ 700 $ 826 Fayette County, School District, GO, ETM 6.250%, 03/01/07 450 513 Forsyth County, School District, GO 6.500%, 07/01/06 1,000 1,136 Forsyth County, School District, GO Callable 02/01/10 @ 102 6.000%, 02/01/15 1,000 1,124 5.750%, 02/01/11 3,000 3,383 Forsyth County, School District, GO, MBIA Prerefunded @ 102 (F) 5.350%, 07/01/05 780 860 Forsyth County, Water & Sewer Authority, RB Callable 04/01/11 @ 101 5.000%, 04/01/18 1,000 1,029 Fulton County, School District, GO 6.375%, 05/01/17 500 602 5.250%, 01/01/12 1,000 1,098 Fulton County, Water & Sewer Authority, RB, ETM, FGIC 6.375%, 01/01/14 1,000 1,187 Gainesville, Water & Sewer Revenue, RB, FSA Callable 11/15/11 @ 100 5.250%, 11/15/16 1,555 1,647 5.250%, 11/15/17 1,000 1,053 Georgia Municipal, Electric Authority Revenue, Ser B, RB, ETM, MBIA 5.700%, 01/01/19 1,000 1,117 Georgia State, Housing & Financial Authority, Single-Family Mortgage, Sub-Ser B-1, RB Callable 06/01/05 @ 102 5.550%, 12/01/07 550 585 Georgia State, Housing & Financial Authority, Single-Family Mortgage, Sub-Ser B-1, RB, FHA Callable 06/01/06 @ 102 5.600%, 12/01/11 450 474 5.550%, 12/01/10 325 344 - -------------------------------------------------------------------------------- FACE AMOUNT (000) VALUE (000) - -------------------------------------------------------------------------------- Georgia State, Municipal Electric Authority, RB, ETM Callable 01/06/03 @ 100 8.000%, 01/01/15 $1,900 $ 2,541 Georgia State, Private Colleges & Universities Authority, Emory University Project, Ser A, RB 5.250%, 09/01/09 1,500 1,661 Georgia State, Ser C, GO 6.250%, 08/01/13 1,650 1,964 Georgia State, Ser D, GO Callable 11/01/11 @ 100 5.000%, 11/01/15 1,000 1,054 Griffin Combined Public Utility Revenue, RB, Ambac (H) Callable 01/01/13 @ 102 5.000%, 01/01/15 1,140 1,206 Gwinnet County, GO 4.000%, 01/01/10 1,330 1,362 Gwinnett County, Recreational Authority, RB 5.875%, 02/01/07 420 471 5.800%, 02/01/06 660 728 Gwinnett County, School District, Ser B, GO 6.400%, 02/01/06 500 560 6.400%, 02/01/07 1,500 1,712 Hall County, School District, Ser B, GO 6.300%, 12/01/05 675 756 Henry County, Henry Medical Center Project, RB, AMBAC Callable 07/01/07 @ 102 5.500%, 07/01/08 545 608 Henry County, Henry Medical Center Project, RB, AMBAC Prerefunded @ 102 (F) 5.500%, 07/01/07 1,640 1,862 Henry County, School District, GO Callable 08/01/11 @ 100 5.125%, 08/01/13 1,500 1,615 Henry County, School District, Ser A, GO 6.450%, 08/01/11 500 586 6.150%, 08/01/06 150 169 Henry County, School District, Ser B, GO 6.300%, 08/01/08 300 347 6 - -------------------------------------------------------------------------------- (UNAUDITED) - -------------------------------------------------------------------------------- FACE AMOUNT (000) VALUE (000) - -------------------------------------------------------------------------------- Henry County, Water & Sewer Authority, RB, AMBAC 6.150%, 02/01/20 $2,465 $ 2,864 Henry County, Water & Sewer Authority, RB, FGIC 6.000%, 02/01/18 1,055 1,220 5.625%, 02/01/16 940 1,055 Houston County, School District, Intergovernmental Contract, COP, MBIA Prerefunded @ 102 (F) 6.000%, 03/01/04 2,000 2,148 Medical Center Hospital Authority, Columbus Regional Health Care System, RB, MBIA Prerefunded @ 102 (F) 6.000%, 08/01/05 1,340 1,502 Mercer County, Private Colleges & Universities, Mercer University Project, RB, ETM, MBIA 6.400%, 11/01/11 1,675 2,009 Meriwether County, School District, GO, FSA 7.000%, 02/01/06 740 842 Metropolitan Atlanta, Rapid Transportation Authority, Ser A, RB, MBIA 6.250%, 07/01/07 500 573 Metropolitan Atlanta, Rapid Transportation Authority, Ser D, RB, ETM 7.000%, 07/01/11 250 308 Metropolitan Atlanta, Rapid Transportation Authority, Ser E, RB, ETM Callable 01/06/03 @ 100 7.000%, 07/01/11 1,165 1,417 Metropolitan Atlanta, Rapid Transportation Authority, Ser N, RB 6.000%, 07/01/07 1,000 1,122 Metropolitan Atlanta, Rapid Transportation Authority, Ser P, RB, AMBAC 6.250%, 07/01/08 1,000 1,156 Milledgeville, Water & Sewer Authority, RB, FSA 6.000%, 12/01/16 1,000 1,164 6.000%, 12/01/21 1,000 1,143 - -------------------------------------------------------------------------------- FACE AMOUNT (000) VALUE (000) - -------------------------------------------------------------------------------- Murray County, School District, Sales Tax Project, GO 5.000%, 10/01/05 $ 875 $ 944 Newton County, Hospital Authority, Newton Health Systems Project, RB, AMBAC Callable 02/01/10 @ 101 5.750%, 02/01/11 780 863 5.750%, 02/01/12 825 908 Paulding County, School District, GO, MBIA 6.000%, 02/01/10 1,000 1,141 Paulding County, School District, Ser A, GO 6.625%, 02/01/07 1,000 1,150 6.625%, 02/01/08 525 610 Rome, Water & Sewer Authority, RB, AMBAC 5.250%, 01/01/09 775 852 Savannah, Water & Sewer Authority, RB, ETM Callable 06/01/03 @ 100 6.450%, 12/01/04 1,000 1,092 Valdosta & Lowndes County, Hospital Authority, South Georgia Medical Center Project, RB, AMBAC Callable 10/01/12 @ 101 5.500%, 10/01/14 940 1,028 5.500%, 10/01/15 965 1,050 Vidalia, Water & Sewer Authority, RB, ETM, Callable 07/01/03 @ 101 6.000%, 07/01/07 605 689 Walker, Dade & Catoosa Counties, Hutchinson Medical, Ser A, RB, FSA Callable 10/01/07 @ 102 5.500%, 10/01/08 1,370 1,517 -------- 105,131 -------- Total Municipal Bonds (Cost $99,620) 105,131 -------- 7 STATEMENT OF NET ASSETS/SCHEDULE OF INVESTMENTS - -------------------------------------------------------------------------------- STI CLASSIC FIXED INCOME FUNDS NOVEMBER 30, 2002 GEORGIA TAX-EXEMPT BOND FUND--CONCLUDED - -------------------------------------------------------------------------------- SHARES VALUE (000) - -------------------------------------------------------------------------------- CASH EQUIVALENTS (4.1%) Federated Tax Free Reserve Fund 4,146,219 $ 4,146 SEI Institutional Tax Free Fund 367,122 367 -------- Total Cash Equivalents (Cost $4,513) 4,513 -------- Total Investments (99.8%) (Cost $104,133) $109,644 -------- OTHER ASSETS AND LIABILITIES (0.2%) Investment Advisory Fee Payable (55) Distribution Fee Payable (7) Administration Fee Payable (6) Other Assets and Liabilities 279 -------- Total Other Assets and Liabilities, Net 211 -------- NET ASSETS: Paid in Capital -- Trust Shares (unlimited authorization -- no par value) based on 8,887,140 outstanding shares of beneficial interest 88,215 Paid in Capital -- Investor Shares (unlimited authorization -- no par value) based on 246,605 outstanding shares of beneficial interest 2,404 Paid in Capital -- Flex Shares (unlimited authorization -- no par value) based on 1,436,535 outstanding shares of beneficial interest 14,603 Undistributed net investment income 2 Accumulated net realized loss on investments (880) Net unrealized appreciation on investments 5,511 -------- Total Net Assets (100.0%) $109,855 ======== Net Asset Value, Offering and Redemption Price Per Share -- Trust Shares $10.39 ======== Net Asset Value and Redemption Price Per Share -- Investor Shares $10.40 ======== Maximum Offering Price Per Share -- Investor Shares ($10.40 / 96.25%) $10.81 ======== Net Asset Value, Offering and Redemption Price Per Share -- Flex Shares (1) $10.40 ======== THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS. FOR DESCRIPTIONS OF ABBREVIATIONS, PLEASE SEE PAGE 40. 8 - -------------------------------------------------------------------------------- (UNAUDITED) HIGH INCOME FUND - -------------------------------------------------------------------------------- FACE AMOUNT (000) VALUE (000) - -------------------------------------------------------------------------------- CORPORATE OBLIGATIONS (95.1%) AUTOPARTS (3.6%) Cummins (B) 9.500%, 12/01/10 $ 500 $ 525 Dana 6.500%, 03/15/08 1,000 875 Dana Credit (B) 8.375%, 08/15/07 500 475 Metaldyne (B) Callable 06/15/07 @ 105.5 11.000%, 06/15/12 1,000 830 Stoneridge Callable 05/01/07 @ 105.75 11.500%, 05/01/12 100 94 -------- 2,799 -------- BROADCASTING (4.1%) Corus Entertainment Callable 03/01/07 @ 104.375 8.750%, 03/01/12 500 529 Grupo Televisa 8.500%, 03/11/32 750 694 Paxson Communication (A) Callable 01/15/06 @ 106.12 15.519%, 01/15/09 1,500 930 Paxson Communication Callable 07/15/05 @ 105.375 10.750%, 07/15/08 500 492 Spanish Broadcasting Callable 11/01/04 @ 104.813 9.625%, 11/01/09 500 517 -------- 3,162 -------- BUILDING & CONSTRUCTION (2.4%) Standard Pacific 9.250%, 04/15/12 250 246 WCI Communities Callable 02/15/06 @ 105.313 10.625%, 02/15/11 1,000 975 WCI Communities Callable 05/01/07 @ 104.56 9.125%, 05/01/12 750 671 -------- 1,892 -------- CABLE (6.6%) Adelphia Communications (J) (K) 10.875%, 10/01/10 250 97 Adelphia Communications, Ser B (J) (K) 10.500%, 07/15/04 500 197 British Sky Broadcasting 7.300%, 10/15/06 100 103 Charter Communications Holdings 10.750%, 10/01/09 1,500 758 - -------------------------------------------------------------------------------- FACE AMOUNT (000) VALUE (000) - -------------------------------------------------------------------------------- Comcast 10.625%, 07/15/12 $ 340 $ 359 Echostar DBS (K) Callable 10/01/04 @ 105.188 10.375%, 10/01/07 1,000 1,050 Echostar DBS Callable 02/01/04 @ 104.69 9.375%, 02/01/09 525 541 Echostar DBS Callable 01/15/06 @ 104.563 9.125%, 01/15/09 500 513 Mediacom LLC (K) Callable 01/15/06 @ 104.75 9.500%, 01/15/13 1,250 1,113 Mediacom LLC, Ser B Callable 04/15/03 @ 104.25 8.500%, 04/15/08 400 356 -------- 5,087 -------- CHEMICALS (2.4%) Compass Minerals Group Callable 08/15/06 @ 105 10.000%, 08/15/11 750 810 IMC Global, Ser B Callable 06/01/06 @ 105.630 11.250%, 06/01/11 750 833 OM Group Callable 12/15/06 @ 104.625 9.250%, 12/15/11 500 213 -------- 1,856 -------- CONSUMER PRODUCTS (4.3%) American Achievement, Ser B Callable 01/01/05 @ 105.813 11.625%, 01/01/07 750 795 Amerigas Partner (B) 8.875%, 05/20/11 500 520 Chattem, Ser B Callable 04/01/03 @ 104.437 8.875%, 04/01/08 750 772 Hasbro 6.600%, 07/15/28 1,500 1,230 -------- 3,317 -------- ENERGY (4.2%) Compton Petroleum (B) Callable 05/15/06 @ 104.95 9.900%, 05/15/09 500 520 Magnum Hunter Callable 06/01/02 @ 105 10.000%, 06/01/07 250 261 Stone Energy Callable 12/15/06 @ 104.125 8.250%, 12/15/11 1,000 1,040 9 SCHEDULE OF INVESTMENTS - -------------------------------------------------------------------------------- STI CLASSIC FIXED INCOME FUNDS NOVEMBER 30, 2002 HIGH INCOME FUND--CONTINUED - -------------------------------------------------------------------------------- FACE AMOUNT (000) VALUE (000) - -------------------------------------------------------------------------------- Swift Energy Callable 05/01/07 @ 104.688 9.375%, 05/01/12 $ 750 $ 720 Tesoro Petroleum Callable 04/01/07 @ 104.813 9.625%, 04/01/12 500 340 Tesoro Petroleum, Ser B Callable 11/01/05 @ 104.81 9.625%, 11/01/08 500 355 -------- 3,236 -------- ENTERTAINMENT (7.0%) Argosy Gaming Company Callable 06/01/04 @ 105.38 10.750%, 06/01/09 500 556 MGM Mirage 9.750%, 06/01/07 500 551 Pinnacle Entertainment, Ser B Callable 08/01/02 @ 104.75 9.500%, 08/01/07 100 86 Resort International Hotel & Casino Callable 03/15/07 @ 106 11.500%, 03/15/09 500 448 Six Flags Callable 02/01/06 @ 104.44 8.875%, 02/01/10 1,000 930 Sun International Hotels Callable 08/15/06 @ 104.438 8.875%, 08/15/11 1,750 1,794 Venetian Casino (B) Callable 06/15/06 @ 105.50 11.000%, 06/15/10 1,000 1,040 -------- 5,405 -------- FINANCIAL SERVICES (1.7%) AmeriCredit (B) Callable 05/01/06 @ 104.63 9.250%, 05/01/09 1,000 780 Capital One Financial 7.250%, 12/01/03 200 194 7.250%, 05/01/06 375 353 -------- 1,327 -------- FOOD, BEVERAGE & TOBACCO (4.5%) B&G Foods, Ser D Callable 08/01/03 @ 103.208 9.625%, 08/01/07 125 129 Burns Philp Capital Property (B) Callable 07/15/07 @ 104.875 9.750%, 07/15/12 1,500 1,517 Del Monte, Ser B Callable 05/15/06 @ 104.63 9.250%, 05/15/11 500 510 - -------------------------------------------------------------------------------- FACE AMOUNT (000) VALUE (000) - -------------------------------------------------------------------------------- Land O Lakes Callable 11/15/06 @ 104.38 8.750%, 11/15/11 $1,500 $ 855 Swift (B) Callable 10/01/06 @ 105.063 10.125%, 10/01/09 500 462 -------- 3,473 -------- HOTELS & LODGING (1.6%) John Q Hammons Hotels, Ser B Callable 05/15/07 @ 104.438 8.875%, 05/15/12 500 501 MeriStar Hospitality Operating Partnership LP Callable 12/15/05 @ 105.25 10.500%, 06/15/09 750 724 -------- 1,225 -------- INDUSTRIAL (8.8%) AK Steel (B) Callable 06/15/07 @ 103.875 7.750%, 06/15/12 1,000 1,010 Case (K), Ser B 6.250%, 12/01/03 535 518 Federal-Mogul (J) 7.375%, 01/15/06 175 26 Foamex LP (B) Callable 04/01/06 @ 105.375 10.750%, 04/01/09 500 360 Johnsondiversey (B) Callable 05/15/07 @ 104.813 9.625%, 05/15/12 100 103 NMGH Holding Callable 05/15/06 @ 105 10.000%, 05/15/09 1,500 1,530 Polaroid (J) 11.500%, 02/15/06 100 5 Polaroid, Ser A, MTN (I) 6.750%, 01/15/02 100 -- Trimas (B) Callable 06/15/07 @ 104.938 9.875%, 06/15/12 1,500 1,523 UCAR Finance Callable 02/15/07 @ 105.125 10.250%, 02/15/12 250 200 Xerox 5.500%, 11/15/03 1,050 1,013 Xerox, Ser E, MTN 5.250%, 12/15/03 500 481 -------- 6,769 -------- 10 - -------------------------------------------------------------------------------- (UNAUDITED) - -------------------------------------------------------------------------------- FACE AMOUNT (000) VALUE (000) - -------------------------------------------------------------------------------- MEDICAL & MEDICAL PRODUCTS (7.5%) Fisher Scientific International Callable 05/01/07 @ 104.06 8.125%, 05/01/12 $ 500 $ 519 Fresenius Medical Capital Trust II 7.875%, 02/01/08 150 147 Healthsouth 8.375%, 10/01/11 750 641 Pacificare Health Systems (K) Callable 06/01/06 @ 105.375 10.750%, 06/01/09 1,500 1,605 Rotech Healthcare (B) Callable 04/01/07 @ 104.75 9.500%, 04/01/12 625 628 United Surgical Partners Callable 12/15/06 @ 105 10.000%, 12/15/11 1,710 1,763 US Oncology Callable 02/01/07 @ 104.813 9.625%, 02/01/12 500 508 -------- 5,811 -------- PAPER & PACKAGING (1.1%) Berry Plastics Callable 07/15/07 @ 105.375 10.750%, 07/15/12 250 271 Bway (B) Callable 10/15/06 @ 105 10.000%, 10/15/10 100 102 Constar International 11.000%, 12/01/12 500 493 -------- 866 -------- PRINTING & PUBLISHING (2.6%) Dex Media East (B) Callable 11/15/06 @ 104.938 9.875%, 11/15/09 250 266 Dex Media East (B) Callable 11/15/07 @ 106.063 12.125%, 11/15/12 250 271 Primedia Callable 04/01/03 @ 103.81 7.625%, 04/01/08 500 446 RH Donnelley (B) (H) Callable 12/15/07 @ 105.438 10.875%, 12/15/12 250 266 RH Donnelley (B) (H) Callable 12/15/06 @ 104.438 8.875%, 12/15/10 250 262 Von Hoffman Press 10.250%, 03/15/09 500 470 -------- 1,981 -------- - -------------------------------------------------------------------------------- FACE AMOUNT (000) VALUE (000) - -------------------------------------------------------------------------------- REAL ESTATE INVESTMENT TRUSTS (1.7%) Crescent Real Estate Equities Callable 04/15/06 @ 104.625 9.250%, 04/15/09 $1,000 $ 1,030 Ventas Realty LP 9.000%, 05/01/12 250 254 -------- 1,284 -------- RETAIL (7.4%) Asbury Automotive Group Callable 06/15/07 @ 104.5 9.000%, 06/15/12 1,000 920 Cole National Group Callable 05/15/07 @ 104.438 8.875%, 05/15/12 250 225 Finlay Fine Jewelry Callable 05/01/03 @ 104.19 8.375%, 05/01/08 100 93 Fleming (K) Callable 05/01/07 @ 104.94 9.875%, 05/01/12 750 457 Fleming (K), Ser D Callable 07/31/02 @ 105.313 10.625%, 07/31/07 750 506 Great Atlantic & Pacific Tea Callable 12/15/06 @ 104.563 9.125%, 12/15/11 750 544 Ingles Markets Callable 12/01/06 @ 104.438 8.875%, 12/01/11 1,000 925 Office Depot 10.000%, 07/15/08 500 568 Roundy's (B) Callable 06/15/07 @ 104.438 8.875%, 06/15/12 1,500 1,508 -------- 5,746 -------- SERVICES (3.4%) Allied Waste (B) 9.250%, 09/01/12 500 517 Coinmach Callable 02/01/06 @ 104.5 9.000%, 02/01/10 500 525 IESI (B) Callable 06/15/07 @ 105.12 10.250%, 06/15/12 500 488 IPC Acquistion Callable 12/15/05 @ 105.750 11.500%, 12/15/09 400 340 National Waterworks (B) Callable 12/01/07 @ 105.25 10.500%, 12/01/12 250 263 11 SCHEDULE OF INVESTMENTS - -------------------------------------------------------------------------------- STI CLASSIC FIXED INCOME FUNDS NOVEMBER 30, 2002 HIGH INCOME FUND--CONCLUDED - -------------------------------------------------------------------------------- FACE AMOUNT (000) VALUE (000) - -------------------------------------------------------------------------------- Service International (B) 7.700%, 04/15/09 $ 500 $ 480 -------- 2,613 -------- TELEPHONE & TELECOMMUNICATIONS (14.9%) AT&T Canada 7.650%, 09/15/06 750 120 AT&T Wireless Services 8.750%, 03/01/31 1,500 1,387 Crown Castle International (K) 10.750%, 08/01/11 1,000 898 Horizon PCS Callable 12/15/06 @ 106.87 13.750%, 06/15/11 400 74 Intermedia Communication, (K) Ser B (J) 11.250%, 07/15/07 1,500 720 Panamsat (B) Callable 02/01/07 @ 104.25 8.750%, 02/01/12 1,500 1,466 Rogers Cantel Callable 06/01/03 @ 104.69 9.375%, 06/01/08 750 705 Rogers Cantel Callable 10/01/02 @ 104.15 8.300%, 10/01/07 750 690 Rural Cellular, Ser B Callable 05/15/03 @ 104.81 9.625%, 05/15/08 631 379 Sprint Capital 6.125%, 11/15/08 1,500 1,300 Triton PCS (A) 13.100%, 05/01/08 2,000 1,760 TSI Telecommunications Services, Ser B Callable 02/01/06 @ 106.375 12.750%, 02/01/09 1,000 875 Voicestream Wireless (A) Callable 11/15/04 @ 105.94 10.736%, 11/15/09 1,325 1,126 -------- 11,500 -------- TRANSPORTATION (1.2%) Continental Airlines (K) 8.000%, 12/15/05 150 79 Laidlaw (K), Ser B, Callable 04/15/02 @ 105.75 11.500%, 04/15/07 1,075 763 Stena (B) Callable 12/01/07 @ 104.813 9.625%, 12/01/12 100 102 -------- 944 -------- - -------------------------------------------------------------------------------- FACE AMOUNT (000)/SHARES VALUE (000) - -------------------------------------------------------------------------------- UTILITIES (4.1%) Calpine 8.500%, 02/15/11 (K) $ 300 $ 136 7.875%, 04/01/08 75 33 7.625%, 04/15/06 (K) 435 204 El Paso Energy Partners (B) Callable 06/01/06 @ 104.25 8.500%, 06/01/11 750 684 El Paso Energy Partners (B) Callable 12/01/07 @ 105.313 10.625%, 12/01/12 500 505 El Paso Energy Partners, Ser B Callable 12/01/06 @ 104.25 8.500%, 06/01/11 250 228 Kansas Gas & Electric 6.500%, 08/01/05 250 241 Mission Energy Holding 13.500%, 07/15/08 1,950 429 Westar Energy 9.750%, 05/01/07 750 675 -------- 3,135 -------- Total Corporate Obligations (Cost $82,775) 73,428 -------- CASH EQUIVALENT (3.7%) SEI Daily Income Trust Prime Obligation Fund 2,877,649 2,878 -------- Total Cash Equivalent (Cost $2,878) 2,878 -------- REPURCHASE AGREEMENT (0.2%) Morgan Stanley 1.00%, dated 11/29/02, matures 12/02/02, repurchase price $193,186 (collateralized by a U.S. Treasury Note: total market value $197,046) (G) $ 193 193 -------- Total Repurchase Agreement (Cost $193) 193 -------- Total Investments (99.0%) (Cost $85,846) 76,499 -------- Other Assets and Liabilities, Net (1.0%) 796 -------- Net Assets (100.0%) $ 77,295 ======== THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS. FOR DESCRIPTIONS OF ABBREVIATIONS, PLEASE SEE PAGE 40. 12 - -------------------------------------------------------------------------------- (UNAUDITED) INVESTMENT GRADE BOND FUND - -------------------------------------------------------------------------------- FACE AMOUNT (000) VALUE (000) - -------------------------------------------------------------------------------- U.S. TREASURY OBLIGATIONS (9.6%) U.S. Treasury Bonds 7.500%, 11/15/16 $35,275 $ 44,584 6.250%, 05/15/30 31,800 36,611 5.750%, 11/15/05 1,900 2,073 5.375%, 02/15/31 3,500 3,673 -------- Total U.S. Treasury Obligations (Cost $77,475) 86,941 -------- U.S. GOVERNMENT AGENCY OBLIGATIONS (1.5%) FNMA (K) 5.250%, 08/01/12 13,900 14,013 -------- Total U.S. Government Agency Obligations (Cost $13,876) 14,013 -------- U.S. AGENCY MORTGAGE-BACKED OBLIGATIONS (21.1%) FHLMC 6.500%, 02/01/17 9,855 10,336 FNMA 7.000%, 05/01/32 26,999 28,188 GNMA 8.500%, 04/15/31 21,337 23,075 8.000%, 08/15/31 to 09/15/31 58,480 62,724 7.000%, 04/15/32 to 07/15/32 24,626 25,875 6.000%, 12/15/31 39,902 41,076 -------- Total U.S. Agency Mortgage- Backed Obligations (Cost $186,621) 191,274 -------- CORPORATE OBLIGATIONS (54.4%) BANKS (3.1%) Bank of America (K) 4.875%, 09/15/12 11,600 11,367 KFW International Finance, Ser DTC 2.500%, 10/17/05 8,000 7,919 Wachovia 6.800%, 06/01/05 8,000 8,730 -------- 28,016 -------- ELECTRICAL SERVICES (2.0%) Alabama Power, Ser Q 5.500%, 10/15/17 4,050 4,023 Carolina Power & Light 6.500%, 07/15/12 4,575 4,804 Dominion Resources, Ser B 7.625%, 07/15/05 5,800 6,264 Pacificorp 6.900%, 11/15/11 3,000 3,323 -------- 18,414 -------- - -------------------------------------------------------------------------------- FACE AMOUNT (000) VALUE (000) - -------------------------------------------------------------------------------- FINANCE (17.6%) Boeing Capital (K) 5.650%, 05/15/06 $ 9,000 $ 9,389 Capital One Bank 6.500%, 07/30/04 5,000 4,886 CIT Group 5.500%, 02/15/04 13,000 13,195 Countrywide Home Loan, MTN, Ser F 6.510%, 02/11/05 17,500 18,572 EOP Operating LP 6.500%, 06/15/04 4,575 4,754 Ford Motor Credit (K) 6.875%, 02/01/06 16,825 16,619 GE Capital (K), MTN, Ser A 6.750%, 03/15/32 16,500 17,531 General Motors Acceptance (K) 8.000%, 11/01/31 14,000 13,660 Golden West Financial 4.125%, 08/15/07 5,000 5,036 Household Finance (K) 5.750%, 01/30/07 9,800 9,721 International Lease Finance, MTN, Ser M 5.950%, 06/06/05 17,150 17,839 National Rural Utilities Cooperative Finance (K) 5.250%, 07/15/04 4,025 4,178 Washington Mutual Financial 8.250%, 06/15/05 7,650 8,539 Wells Fargo Finance 5.500%, 08/01/12 15,125 15,518 -------- 159,437 -------- FOOD, BEVERAGE & TOBACCO (3.9%) Coca-Cola Enterprises 8.500%, 02/01/22 10,000 12,600 Conagra Foods 6.750%, 09/15/11 4,575 5,086 Philip Morris 7.500%, 04/01/04 16,450 17,252 -------- 34,938 -------- FOREIGN GOVERNMENTS (2.2%) Province of Ontario 6.000%, 02/21/06 9,050 9,776 Quebec Province, Ser NN 7.125%, 02/09/24 8,600 9,987 -------- 19,763 -------- 13 SCHEDULE OF INVESTMENTS - -------------------------------------------------------------------------------- STI CLASSIC FIXED INCOME FUNDS NOVEMBER 30, 2002 INVESTMENT GRADE BOND FUND--CONCLUDED - -------------------------------------------------------------------------------- FACE AMOUNT (000) VALUE (000) - -------------------------------------------------------------------------------- INDUSTRIAL (10.9%) Alcoa (K) 4.250%, 08/15/07 $ 9,000 $ 9,130 Anadarko Petroleum 6.125%, 03/15/12 4,575 4,873 Cardinal Health 4.450%, 06/30/05 2,000 2,075 CBS 7.875%, 09/01/23 3,900 4,504 Computer Sciences 7.500%, 08/08/05 13,400 14,427 Conoco 6.950%, 04/15/29 9,750 10,737 Daimler Chrysler (K) 7.200%, 09/01/09 12,950 13,873 Diageo Capital 3.500%, 11/19/07 4,825 4,724 Federated Department Stores (K) 6.625%, 04/01/11 4,575 4,861 Ford Motor 6.625%, 10/01/28 9,000 6,930 Kerr-McGee 5.875%, 09/15/06 2,775 2,953 5.375%, 04/15/05 1,530 1,598 Masco 5.875%, 07/15/12 4,550 4,703 Viacom (K) 5.625%, 05/01/07 9,000 9,503 Weyerhaeuser 7.950%, 03/15/25 3,850 4,305 -------- 99,196 -------- INSURANCE (1.6%) Allstate 7.875%, 05/01/05 13,250 14,625 -------- INVESTMENT BANKERS/BROKER DEALERS (8.2%) Donaldson Lufkin Jenrette, MTN 6.150%, 05/04/04 8,000 8,380 Goldman Sachs 6.600%, 01/15/12 12,350 13,371 Merrill Lynch, MTN, Ser B 5.350%, 06/15/04 12,500 13,000 Morgan Stanley Dean Witter 7.250%, 04/01/32 18,000 19,832 Salomon Smith Barney Holdings 6.500%, 02/15/08 17,960 19,599 -------- 74,182 -------- TELEPHONE & TELECOMMUNICATIONS (3.8%) Ameritech Capital Funding 6.450%, 01/15/18 11,450 11,412 AT&T Broadband (K) 9.455%, 11/15/22 4,300 4,769 - -------------------------------------------------------------------------------- FACE AMOUNT (000) VALUE (000) - -------------------------------------------------------------------------------- AT&T Wireless 8.125%, 05/01/12 $ 5,650 $ 5,424 Verizon 5.875%, 01/17/12 12,350 12,663 -------- 34,268 -------- TRANSPORTATION (1.1%) Norfolk Southern 7.800%, 05/15/27 4,625 5,423 Union Pacific 5.750%, 10/15/07 4,600 4,927 -------- 10,350 -------- Total Corporate Obligations (Cost $480,910) 493,189 -------- MORTGAGE RELATED (6.4%) Bank One Issuance Trust, Ser 2002-A4, Cl A4 2.940%, 06/16/08 12,950 12,924 Capital Auto Receivables Asset Trust, Ser 2002-4, Cl A4 2.640%, 03/17/08 8,000 7,979 GE Capital, Ser 2002-1A, Cl A3 6.269%, 12/10/35 14,200 15,359 GMAC Communication Mortgage Securities, Ser 2002-C2, Cl A3 5.713%, 10/15/38 5,175 5,410 Harley-Davidson Motorcycle Trust, Ser 2002-2, Cl A2 3.090%, 06/15/10 6,000 6,030 JP Morgan Chase Commercial Mortgage Security, Ser 2002-C1, Cl A3 5.376%, 07/12/12 10,350 10,554 -------- Total Mortgage Related (Cost $56,818) 58,256 -------- REPURCHASE AGREEMENT (6.3%) UBS Warburg 1.290%, dated 11/29/02, matures 12/02/02, repurchase price $56,740,169 (collateralized by U.S. Treasury STRIPS: total market value $57,869,717) (G) 56,734 56,734 -------- Total Repurchase Agreement (Cost $56,734) 56,734 -------- Total Investments (99.3%) (Cost $872,434) 900,407 -------- Other Assets and Liabilities, Net (0.7%) 6,415 -------- Net Assets (100.0%) $906,822 ======== THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS. FOR DESCRIPTIONS OF ABBREVIATIONS, PLEASE SEE PAGE 40. 14 - -------------------------------------------------------------------------------- (UNAUDITED) INVESTMENT GRADE TAX-EXEMPT BOND FUND - -------------------------------------------------------------------------------- FACE AMOUNT (000) VALUE (000) - -------------------------------------------------------------------------------- MUNICIPAL BONDS (99.6%) ALABAMA (12.0%) Alabama State, Public School & College Authority, Capital Improvement Project, Ser C, RB Callable 07/01/11 @ 100 5.750%, 07/01/17 $ 3,950 $ 4,318 Auburn University, Ser A, RB, MBIA Callable 06/01/11 @ 100 6.000%, 06/01/15 3,835 4,313 Huntsville, Ser A, GO Callable 05/01/12 @ 102 5.750%, 05/01/19 2,800 3,096 5.625%, 05/01/16 2,375 2,629 Jefferson County, Sewer Authority, Capital Improvements Projects, Ser A, RB, FGIC Prerefunded @ 101 (F) 5.750%, 02/01/09 10,000 11,415 -------- 25,771 -------- ARIZONA (3.3%) Arizona State, Transportation Board Highway Authority, Ser B, RB Callable 07/01/12 @ 100 5.250%, 07/01/14 2,000 2,166 5.250%, 07/01/17 1,500 1,589 Arizona State, University & College Improvements Project, RB, FGIC Callable 07/01/12 @ 100 5.500%, 07/01/15 1,665 1,823 Scottsdale, Municipal Property, RB (H) 5.500%, 07/01/14 1,420 1,591 -------- 7,169 -------- CALIFORNIA (10.8%) California State, Department Water Reserve Power Supply, Ser A, RB 5.500%, 05/01/05 3,000 3,199 California State, Department Water Reserve Power Supply, Ser A, RB, AMBAC Callable 05/01/12 @ 101 5.500%, 05/01/15 5,000 5,510 5.500%, 05/01/16 6,000 6,564 California State, Department Water Resident Center, Water System Project, Ser Y, RB, FGIC (H) 5.000%, 12/01/06 5,000 5,414 - -------------------------------------------------------------------------------- FACE AMOUNT (000) VALUE (000) - -------------------------------------------------------------------------------- Orange County, Loma Ridge/Data Center Project, COP, AMBAC Prerefunded @ 100 (F) 6.000%, 06/01/19 $ 2,075 $ 2,405 -------- 23,092 -------- COLORADO (7.4%) Colorado State, Health Facilities Authority, North Colorado Medical Center Project, RB, MBIA (C) Callable 01/01/03 @ 100 1.150%, 05/15/20 2,800 2,800 Larimer County, School District No. R 1, FGIC, GO Callable 12/15/10 @ 100 6.000%, 12/15/15 3,000 3,394 6.000%, 12/15/16 3,000 3,361 6.000%, 12/15/17 4,000 4,501 Regional Transition District, State Sales Tax, Ser B, RB, AMBAC Callable 11/01/12 @ 100 5.500%, 11/01/17 1,655 1,793 -------- 15,849 -------- CONNECTICUT (4.1%) Connecticut State, New Money Project, Ser D, GO Callable 11/15/12 @ 100 5.375%, 11/15/17 5,000 5,398 Connecticut State, Ser E, GO, FSA 5.000%, 11/15/09 3,000 3,303 -------- 8,701 -------- FLORIDA (12.2%) Dade County, Water & Sewer System Authority, RB, FGIC Callable 10/01/03 @ 102 5.000%, 10/01/07 3,000 3,135 Florida State, Board Capital Outlay, Public Education Project, Ser C, GO Callable 06/01/05 @ 101 5.300%, 06/01/09 7,395 7,902 Palm Beach County, State School Board, Ser C, COP, FSA Callable 08/01/12 @ 100 5.500%, 08/01/15 2,825 3,112 Palm Beach County, State School Board, Ser E, COP, AMBAC, 5.375%, 08/01/14 2,000 2,213 5.375%, 08/01/15 4,750 5,249 15 SCHEDULE OF INVESTMENTS - -------------------------------------------------------------------------------- STI CLASSIC FIXED INCOME FUNDS NOVEMBER 30, 2002 INVESTMENT GRADE TAX-EXEMPT BOND FUND--CONCLUDED - -------------------------------------------------------------------------------- FACE AMOUNT (000) VALUE (000) - -------------------------------------------------------------------------------- Tampa, Water & Sewer Authority, RB, FSA (H) 6.000%, 10/01/15 $ 2,000 $ 2,333 6.000%, 10/01/17 1,920 2,236 -------- 26,180 -------- GEORGIA (2.6%) Metropolitan Atlanta, Rapid Transit Authority, State Sales Tax Project, Ser A, RB, MBIA Callable 07/01/06 @ 102 5.400%, 07/01/12 5,000 5,477 -------- ILLINOIS (2.9%) Chicago, School Finance Authority, Ser A, GO, FGIC Callable 11/06/03 @ 102 6.250%, 06/01/09 6,000 6,140 -------- IOWA (1.1%) Des Moines, Public Parking System, Ser A, RB, FGIC Callable 06/01/10 @ 100 6.375%, 06/01/18 2,005 2,316 -------- KANSAS (4.5%) Johnson County, Unified School District No. 233, Ser B, GO, FGIC 5.500%, 09/01/15 1,815 2,033 Wyandotte County, School District No. 500, GO, FSA Callable 09/01/12 @ 100 5.500%, 09/01/17 2,000 2,163 5.500%, 09/01/19 5,000 5,342 -------- 9,538 -------- LOUISIANA (4.5%) Shreveport, Water & Sewer Authority, Ser A, RB, FGIC (H) 4.500%, 12/01/08 4,895 5,139 4.000%, 12/01/06 4,320 4,493 -------- 9,632 -------- MASSACHUSETTS (5.4%) Massachusetts State, Water Pollution Abatement, Treatment Pool Project, Ser 6, RB Callable 08/01/10 @ 101 5.625%, 08/01/17 6,250 6,735 5.625%, 08/01/16 2,500 2,726 - -------------------------------------------------------------------------------- FACE AMOUNT (000) VALUE (000) - -------------------------------------------------------------------------------- Massachusetts State, Water Pollution Abatement, Treatment Pool Project, Ser 8, RB Callable 08/01/12 @ 100 5.000%, 08/01/16 $ 2,000 $ 2,079 -------- 11,540 -------- MICHIGAN (4.5%) Michigan State, Municipal Authority, RB Callable 10/01/07 @ 101 5.200%, 10/01/13 2,000 2,152 Michigan State, Ser D, RB, FSA (C) Callable 01/01/03 @ 100 1.125%, 09/15/09 7,500 7,500 -------- 9,652 -------- MISSISSIPPI (1.2%) Jackson, Public School District, Ser B, GO, AMBAC Callable 10/01/10 @ 100 5.750%, 10/01/15 2,275 2,504 -------- MISSOURI (4.5%) Missouri State, Highways & Transportation Commission, Ser A, RB Callable 02/01/11 @ 100 5.625%, 02/01/18 8,885 9,612 -------- NEW JERSEY (1.3%) New Jersey State, Highway Authority, Garden State Parkway Project, RB, FGIC 5.500%, 01/01/15 2,500 2,788 -------- NEW YORK (2.0%) Buffalo, School District, Ser D, GO, FGIC Callable 12/15/11 @ 100 5.500%, 12/15/14 1,075 1,181 New York State, Dorm Authority, City University Project, RB, FSA Callable 07/01/14 @ 100 5.750%, 07/01/18 2,790 3,178 -------- 4,359 -------- 16 - -------------------------------------------------------------------------------- (UNAUDITED) - -------------------------------------------------------------------------------- FACE AMOUNT (000) VALUE (000) - -------------------------------------------------------------------------------- NORTH CAROLINA (1.6%) Charlotte, Water & Sewer Systems, RB Prerefunded @ 101 (F) 5.750%, 06/01/10 $ 2,000 $ 2,300 North Carolina State, Medical Care Community Hospital, Mercy Hospital Project, RB, ETM Callable 01/06/03 @ 102 6.500%, 08/01/15 1,000 1,024 -------- 3,324 -------- OHIO (3.3%) Cleveland, City School District, Ser A, GO, FGIC Prerefunded @ 102 (F) 5.875%, 12/01/02 1,000 1,020 Cleveland, Income Tax Revenue Authority, RB, AMBAC (C) 1.150%, 05/15/24 3,000 3,000 Ohio State, Infrastructure Improvement, Ser A, GO Callable 02/01/10 @ 101 5.750%, 02/01/13 1,300 1,444 Ohio State, Water Development Authority, Fresh Water Project, RB, AMBAC, ETM Callable 06/01/05 @ 102 5.700%, 06/01/08 1,520 1,671 -------- 7,135 -------- SOUTH CAROLINA (1.5%) Clemson University, South Carolina Revenue, RB, AMBAC, Callable 05/01/09 @ 101 6.250%, 05/01/15 2,725 3,127 -------- TEXAS (3.3%) Dallas, Waterworks & Sewer Systems, Ser A, RB (H) 5.000%, 10/01/06 5,000 5,386 Irving, Waterworks & Sewer Authority, RB Callable 06/15/09 @ 100.5 5.950%, 06/15/19 1,460 1,604 -------- 6,990 -------- WASHINGTON (2.3%) Washington State, Ser VR 96A, GO (C) Callable 01/01/03 @ 100 1.110%, 06/01/20 5,000 5,000 -------- - -------------------------------------------------------------------------------- SHARES/FACE AMOUNT (000) VALUE (000) - -------------------------------------------------------------------------------- PUERTO RICO (3.3%) Puerto Rico Commonwealth, Public Improvement Project, GO, FSA 5.500%, 07/01/16 $ 2,500 $ 2,823 Puerto Rico Commonwealth, Public Improvement Project, Ser A, GO, FGIC 5.500%, 07/01/22 3,960 4,314 -------- 7,137 -------- Total Municipal Bonds (Cost $210,303) 213,033 -------- CASH EQUIVALENTS (8.8%) Federated Tax Free Reserve Fund 10,605,645 10,606 SEI Institutional Tax Free Fund 8,209,425 8,209 -------- Total Cash Equivalents (Cost $18,815) 18,815 -------- Total Investments (108.4%) (Cost $229,118) 231,848 -------- Other Assets and Liabilities, Net (-8.4%) (17,955) -------- Net Assets (100.0%) $213,893 ======== THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS. FOR DESCRIPTIONS OF ABBREVIATIONS, PLEASE SEE PAGE 40. 17 STATEMENT OF NET ASSETS - -------------------------------------------------------------------------------- STI CLASSIC FIXED INCOME FUNDS NOVEMBER 30, 2002 LIMITED-TERM FEDERAL MORTGAGE SECURITIES FUND - -------------------------------------------------------------------------------- SHARES/FACE AMOUNT (000) VALUE (000) - -------------------------------------------------------------------------------- U.S. TREASURY OBLIGATIONS (8.8%) U.S. Treasury Notes 5.875%, 11/15/05 $$ 9,650 $ 10,563 4.375%, 05/15/07 (K) 3,000 3,153 4.000%, 11/15/12 10,000 9,826 3.000%, 01/31/04 3,720 3,779 -------- Total U.S. Treasury Obligations (Cost $26,903) 27,321 -------- U.S. GOVERNMENT AGENCY OBLIGATIONS (2.5%) FNMA 6.625%, 10/15/07 5,000 5,649 5.250%, 08/01/12 (K) 1,970 1,986 -------- Total U.S. Government Agency Obligations (Cost $7,258) 7,635 -------- U.S. AGENCY MORTGAGE-BACKED OBLIGATIONS (80.2%) FHLMC 6.500%, 02/01/17 11,875 12,454 FNMA 8.500%, 04/01/17 178 194 7.000%, 11/01/16 to 05/01/32 69,690 72,849 6.500%, 06/01/13 to 10/01/16 8,753 9,195 6.000%, 09/01/13 to 09/01/32 80,025 82,703 GNMA 9.000%, 11/15/17 269 298 8.500%, 04/15/31 2,574 2,783 8.000%, 06/15/30 to 09/15/31 30,456 32,666 7.000%, 07/15/31 to 09/15/31 11,446 12,028 6.500%, 11/15/31 13,265 13,803 6.000%, 12/15/31 8,033 8,269 -------- Total U.S. Agency Mortgage-Backed Obligations (Cost $243,498) 247,242 -------- CASH EQUIVALENT (0.0%) SEI Liquid Asset Trust Prime Obligation Fund 3,950 4 -------- Total Cash Equivalent (Cost $4) 4 -------- REPURCHASE AGREEMENT (7.8%) Morgan Stanley 1.280%, dated 11/29/02, matures 12/02/02, repurchase price $23,895,388 (collateralized by FNMA obligations: total market value $24,370,781) (G) $23,893 23,893 -------- Total Repurchase Agreement (Cost $23,893) 23,893 -------- - -------------------------------------------------------------------------------- VALUE (000) - -------------------------------------------------------------------------------- Total Investments (99.3%) (Cost $301,556) $306,095 -------- OTHER ASSETS AND LIABILITIES (0.7%) Collateral Received on Securities Loaned 4,989 Payable upon Return of Securities Loaned (4,989) Investment Advisory Fee Payable (150) Distribution Fee Payable (37) Administration Fee Payable (17) Other Assets and Liabilities 2,240 -------- Total Other Assets and Liabilities, Net 2,036 -------- NET ASSETS: Paid in Capital -- Trust Shares (unlimited authorization -- no par value) based on 20,694,561 outstanding shares of beneficial interest 211,414 Paid in Capital -- Investor Shares (unlimited authorization -- no par value) based on 683,688 outstanding shares of beneficial interest 7,123 Paid in Capital -- Flex Shares (unlimited authorization -- no par value) based on 8,177,747 outstanding shares of beneficial interest 85,051 Distributions in excess of net investment income (1,882) Accumulated net realized gain on investments 1,886 Net unrealized appreciation on investments 4,539 -------- Total Net Assets (100.0%) $308,131 ======== Net Asset Value, Offering and Redemption Price Per Share -- Trust Shares $10.42 ======== Net Asset Value and Redemption Price Per Share -- Investor Shares $10.41 ======== Maximum Offering Price Per Share -- Investor Shares ($10.41 / 97.50%) $10.68 ======== Net Asset Value, Offering and Redemption Price Per Share -- Flex Shares (1) $10.43 ======== THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS. FOR DESCRIPTIONS OF ABBREVIATIONS, PLEASE SEE PAGE 40. 18 - -------------------------------------------------------------------------------- (UNAUDITED) MARYLAND MUNICIPAL BOND FUND - -------------------------------------------------------------------------------- FACE AMOUNT (000) VALUE (000) - -------------------------------------------------------------------------------- MUNICIPAL BONDS (96.9%) MARYLAND (84.1%) Anne Arundel County, GO 6.000%, 02/01/07 $1,000 $ 1,131 Baltimore County, Consolidated Public Improvement, GO Callable 06/01/11 @ 101 5.000%, 06/01/18 835 868 Baltimore County, Consolidated Public Improvement, GO Callable 07/01/08 @ 101 4.750%, 07/01/09 500 541 Baltimore, Board of Education, Administration Project, Ser A, COP, MBIA 5.250%, 04/01/05 750 805 Baltimore, GO, MBIA 7.000%, 10/15/10 500 614 Baltimore, Pollution Control, General Motors Project, RB 5.350%, 04/01/08 1,070 1,186 Baltimore, Ser A, RB, FGIC 5.900%, 07/01/10 1,000 1,144 5.900%, 07/01/13 900 1,039 Frederick County, GO Callable 07/01/09 @ 101 5.250%, 07/02/11 1,000 1,105 Frederick County, GO Callable 12/01/10 @ 101 5.200%, 12/01/19 500 524 Frederick County, Mount Saint Mary's College, Ser A, RB Callable 03/01/10 @ 101 5.500%, 09/01/16 565 575 Howard County, Ser A, GO Callable 02/15/12 @ 100 5.250%, 08/15/13 1,180 1,295 Howard County, Construction Project, Ser A, GO Callable 02/15/12 @ 100 5.250%, 08/15/14 1,000 1,084 Maryland State, Community Development Administration, RB, FHA 4.100%, 07/01/08 285 293 Maryland State, Community Development Administration, Ser C, RB, FHA Callable 03/01/10 @ 100 5.650%, 09/01/12 475 511 - -------------------------------------------------------------------------------- FACE AMOUNT (000) VALUE (000) - -------------------------------------------------------------------------------- Maryland State, Community Development Administration, Ser E, RB, FHA Callable 09/01/09 @ 100 5.700%, 09/01/17 $ 900 $ 943 Maryland State, Community Development Administration, Ser F, RB, AMT Callable 09/01/09 @ 100 5.900%, 09/01/19 1,000 1,039 Maryland State, Community Development Administration, Single Family Program, Second Ser, RB 4.700%, 04/01/11 1,000 1,028 Maryland State, Community Development Administration, Single-Family Housing, 1st Ser, RB, FHA Callable 04/01/07 @ 101.50 5.600%, 04/01/18 320 334 Maryland State, Department of Transportation County Authority, RB 5.500%, 02/01/13 975 1,089 Maryland State, Economic Development Authority, RB Callable 09/15/12 @ 100 5.000%, 09/15/14 500 533 Maryland State, Economic Development Corporation, Baltimore County Project, RB (E), Callable 12/04/02 @ 100 1.200%, 11/01/31 1,250 1,250 Maryland State, Economic Development Corporation, Department of Transportation Headquarters Project, RB Callable 06/01/12 @ 100.5 5.375%, 06/01/19 1,000 1,060 Maryland State, Economic Development Corporation, Frostburg State University Project, Ser A, RB Callable 10/01/12 @ 101 5.500%, 10/01/15 250 256 Maryland State, Economic Development Corporation, Morgan State University Project, Ser A, RB 5.200%, 07/01/12 680 703 19 STATEMENT OF NET ASSETS - -------------------------------------------------------------------------------- STI CLASSIC FIXED INCOME FUNDS NOVEMBER 30, 2002 MARYLAND MUNICIPAL BOND FUND--CONTINUED - -------------------------------------------------------------------------------- FACE AMOUNT (000) VALUE (000) - -------------------------------------------------------------------------------- Maryland State, Economic Development Corporation, University Village at Sheppard Pratt Project, RB, ACA Callable 07/01/11 @ 101 5.875%, 07/01/21 $ 250 $ 260 Maryland State, Health & Higher Education Authority, North Arundel Hospital Project, RB, MBIA Callable 07/01/03 @ 100 5.750%, 07/01/21 450 457 Maryland State, Health & Higher Education Authority, Union Hospital of Cecil County Project, RB Callable 07/01/12 @ 100 5.750%, 07/01/20 500 520 Maryland State, Health & Higher Educational Facilities Authority, Board of Child Care Project, RB 4.500%, 07/01/09 600 609 Maryland State, Health & Higher Educational Facilities Authority, Board of Child Care Project, RB Callable 07/01/12 @ 100 5.500%, 07/01/13 1,000 1,066 Maryland State, Health & Higher Educational Facilities Authority, Carroll County General Hospital, RB (H) 4.400%, 07/01/09 910 919 Maryland State, Health & Higher Educational Facilities Authority, Carroll County General Hospital, RB Callable 07/01/12 @ 100 6.000%, 07/01/21 250 258 Maryland State, Health & Higher Educational Facilities Authority, Catholic Health Initiatives, Ser A, RB Callable 06/01/10 @ 101 6.000%, 12/01/24 250 269 Maryland State, Health & Higher Educational Facilities Authority, Charity Obligated Group, RB Prerefunded @ 100 (C) (F) 4.600%, 11/01/03 265 273 Maryland State, Health & Higher Educational Facilities Authority, Hebrew Home of Greater Washington, RB Callable 01/01/12 @ 100 5.700%, 01/01/21 480 490 5.700%, 01/01/22 510 519 - -------------------------------------------------------------------------------- FACE AMOUNT (000) VALUE (000) - -------------------------------------------------------------------------------- Maryland State, Health & Higher Educational Facilities Authority, Johns Hopkins Hospital Project, RB 5.000%, 05/15/09 $ 700 $ 753 Maryland State, Health & Higher Educational Facilities Authority, Mercy Medical Center Project, RB Callable 07/01/11 @ 100 5.625%, 07/01/31 1,000 985 Maryland State, Health & Higher Educational Facilities Authority, North Arundel Hospital Project, RB Callable 07/01/10 @ 101 6.500%, 07/01/26 400 423 Maryland State, Health & Higher Educational Facilities Authority, University of Maryland Medical Project, RB 6.000%, 07/01/05 100 108 5.000%, 07/01/09 1,020 1,086 Maryland State, Health & Higher Educational Facilities Authority, University of Maryland Medical Project, RB Callable 07/01/11 @ 100 5.750%, 07/01/21 1,725 1,784 Maryland State, Individual Development Financing Authority, Baltimore Aquarium Project, Ser B, RB Callable 11/01/12 @ 100 5.500%, 11/01/17 500 533 Maryland State, Ser 2, GO 5.500%, 07/15/13 1,150 1,295 Maryland State, Stadium Authority, Sports Facility Project, RB, AMBAC Callable 03/01/06 @ 101 5.800%, 03/01/26 250 268 Maryland State, State & Local Facilities Loan, First Ser, GO 5.125%, 08/01/05 535 578 Maryland State, State & Local Facilities Loan, First Ser, GO Callable 03/01/08 @ 101 4.750%, 03/01/09 500 539 Maryland State, State & Local Facilities Loan, Second Ser, GO Callable 06/15/06 @ 100.5 5.250%, 06/15/08 500 547 20 - -------------------------------------------------------------------------------- (UNAUDITED) - -------------------------------------------------------------------------------- FACE AMOUNT (000) VALUE (000) - -------------------------------------------------------------------------------- Maryland State, State & Local Facilities Loan, Second Ser, GO Callable 07/15/09 @ 101 5.250%, 07/15/12 $1,000 $ 1,102 Maryland State, State & Local Facilities Loan, Third Ser, GO 5.000%, 10/15/06 750 822 Maryland State, State & Local Facilities Loan, Third Ser, GO Callable 10/15/06 @ 100 5.000%, 10/15/07 525 568 Maryland State, State & Local Facilities, Capital Improvement Project, Ser A, GO 5.500%, 08/01/14 1,000 1,124 Maryland State, Transportation Authority, Baltimore/Washington International Airport, Ser B, RB, AMBAC Callable 03/01/12 @ 101 5.375%, 03/01/15 1,000 1,063 Maryland State, Transportation Authority, RB, ETM, Callable 01/06/03 @ 100 6.800%, 07/01/16 120 142 Montgomery County, Consolidated Public Improvements, Ser A, GO 5.800%, 07/01/07 500 566 5.700%, 07/01/05 675 738 Montgomery County, Equipment Acquisition Program, COP 4.500%, 06/01/06 1,000 1,071 Montgomery County, Housing Opportunity, Aston Woods Apartments Project, Ser A, RB Callable 05/15/08 @ 102 4.900%, 05/15/31 600 625 Montgomery County, Housing Opportunity, Housing Development Project, RB Callable 07/01/10 @ 100 6.000%, 07/01/20 990 1,047 Montgomery County, Housing Opportunity, RB (C) 1.280%, 11/01/20 1,200 1,200 Montgomery County, Housing Opportunity, Single-Family Mortgage, Ser A, RB Callable 01/01/11 @ 100 4.450%, 07/01/17 500 522 Montgomery County, Trinity Healthcare Group, RB Callable 12/01/11 @ 100 5.500%, 12/01/16 1,000 1,066 - -------------------------------------------------------------------------------- FACE AMOUNT (000) VALUE (000) - -------------------------------------------------------------------------------- Northeast Maryland, Waste Disposal Authority, Resources Recreation Project, Ser A, RB 6.000%, 07/01/06 $1,000 $ 1,083 Prince Georges County, Consolidated Public Improvements, GO, FSA (H) 5.000%, 05/15/06 500 544 Queen Annes County, Public Facilities, GO, FGIC 5.125%, 11/15/06 350 386 St. Mary's County, Consolidated Public Improvements, GO 5.500%, 07/01/11 1,165 1,316 Talbot County, Public Facilities, GO Callable 03/15/12 @ 101 5.375%, 03/15/17 1,455 1,572 University of Maryland, Ser A, RB 5.000%, 04/01/05 400 428 Washington, Suburban Sanitation District, GO 5.000%, 06/01/05 355 381 Washington, Suburban Sanitation District, GO Callable 06/01/04 @ 102 4.625%, 06/01/06 750 790 ------- 53,645 ------- GUAM (0.9%) Guam, Ser A, RB, FSA 5.000%, 12/01/09 500 550 ------- PUERTO RICO (11.9%) Puerto Rico Commonwealth, GO, MBIA 5.650%, 07/01/15 1,500 1,721 Puerto Rico Commonwealth, Housing Bank & Finance Agency, Affordable Housing Mortgage Portfolio, Ser I, RB, AMT, GNMA Callable 04/01/05 @ 102 6.250%, 04/01/29 625 650 Puerto Rico Commonwealth, Public Improvements Project, Ser A, GO, FGIC 5.500%, 07/01/15 500 566 5.250%, 07/01/12 600 666 Puerto Rico Commonwealth, Public Improvements, FSA, GO Callable 07/01/11 @ 100 5.125%, 07/01/30 1,250 1,266 21 STATEMENT OF NET ASSETS/SCHEDULE OF INVESTMENTS - -------------------------------------------------------------------------------- STI CLASSIC FIXED INCOME FUNDS NOVEMBER 30, 2002 MARYLAND MUNICIPAL BOND FUND--CONCLUDED - -------------------------------------------------------------------------------- SHARES/FACE AMOUNT (000) VALUE (000) - -------------------------------------------------------------------------------- Puerto Rico Commonwealth, Public Improvements, Ser A, GO 5.500%, 07/01/17 $ 500 $ 559 5.500%, 07/01/18 1,500 1,633 Puerto Rico Public Finance Corporation, Ser A, MBIA Callable 08/01/11 @ 100 5.500%, 08/01/20 500 535 ------- 7,596 ------- Total Municipal Bonds (Cost $60,205) 61,791 ------- CASH EQUIVALENT (1.8%) Federated Tax-Free Obligation Fund 1,120,987 1,121 ------- Total Cash Equivalent (Cost $1,121) 1,121 ------- Total Investments (98.7%) (Cost $61,326) 62,912 ------- OTHER ASSETS AND LIABILITIES (1.3%) Investment Advisory Fee Payable (30) Distribution Fee Payable (20) Administration Fee Payable (4) Other Assets and Liabilities 890 ------- Total Other Assets and Liabilities, Net 836 ------- NET ASSETS: Paid in Capital --Trust Shares (unlimited authorization -- no par value) based on 3,588,914 outstanding shares of beneficial interest 36,160 Paid in Capital -- Flex Shares (unlimited authorization -- no par value) based on 2,510,050 outstanding shares of beneficial interest 25,801 Distributions in excess of net investment income (22) Accumulated net realized gain on investments 223 Net unrealized appreciation on investments 1,586 ------- Total Net Assets (100.0%) $63,748 ======= Net Asset Value, Offering and Redemption Price Per Share -- Trust Shares $10.44 ======= Net Asset Value, Offering and Redemption Price Per Share -- Flex Shares (1) $10.47 ======= THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS. FOR DESCRIPTIONS OF ABBREVIATIONS, PLEASE SEE PAGE 40. 22 - -------------------------------------------------------------------------------- (UNAUDITED) SHORT-TERM BOND FUND - -------------------------------------------------------------------------------- FACE AMOUNT (000) VALUE (000) - -------------------------------------------------------------------------------- U.S. TREASURY OBLIGATIONS (17.1%) U.S. Treasury Notes 5.875%, 11/15/04 $ 1,600 $ 1,717 4.625%, 05/15/06 (K) 15,000 15,923 4.375%, 05/15/07 (K) 10,000 10,509 3.500%, 11/15/06 (K) 10,000 10,199 3.000%, 11/30/03 to 02/29/04 14,300 14,529 2.250%, 07/31/04 3,000 3,017 U.S. Treasury STRIPS (D) 6.530%, 08/15/03 1,250 1,238 -------- Total U.S. Treasury Obligations (Cost $57,496) 57,132 -------- U.S. GOVERNMENT AGENCY OBLIGATIONS (8.6%) FHLB, Ser 322 (K) 3.250%, 08/15/05 10,000 10,132 FHLMC 7.000%, 07/15/05 3,000 3,330 4.250%, 06/15/05 10,000 10,399 FNMA 4.500%, 10/17/06 5,000 5,129 -------- Total U.S. Government Agency Obligations (Cost $28,714) 28,990 -------- U.S. AGENCY MORTGAGE-BACKED OBLIGATIONS (3.4%) FHLMC 6.000%, 07/01/06 3,498 3,613 FNMA 7.000%, 01/01/27 611 640 FNMA, REMIC, Ser 1996-30, Cl PC 7.000%, 11/25/20 448 448 FNMA, REMIC, Ser 2002-27, Cl QA 5.250%, 04/25/10 6,000 6,110 GNMA 8.000%, 11/15/09 507 546 -------- Total U.S. Agency Mortgage-Backed Obligations (Cost $11,096) 11,357 -------- REGIONAL GOVERNMENT AGENCIES (2.0%) Province of Ontario 7.000%, 08/04/05 4,000 4,425 Quebec Province 5.500%, 04/11/06 2,000 2,141 -------- Total Regional Government Agencies (Cost $6,171) 6,566 -------- CORPORATE OBLIGATIONS (53.3%) AEROSPACE & DEFENSE (1.5%) Boeing Capital (K) 5.650%, 05/15/06 4,500 4,695 Raytheon 5.700%, 11/01/03 500 509 -------- 5,204 -------- - -------------------------------------------------------------------------------- FACE AMOUNT (000) VALUE (000) - -------------------------------------------------------------------------------- AIR TRANSPORTATION (0.5%) FedEx 6.625%, 02/12/04 $ 1,750 $ 1,822 -------- AUTOMOTIVE (0.7%) DaimlerChrysler 7.750%, 06/15/05 2,250 2,432 -------- BANKS (1.7%) KFW International Finance, Ser DTC 4.750%, 01/24/07 (K) 3,000 3,146 2.500%, 10/17/05 2,500 2,475 -------- 5,621 -------- CABLE (0.9%) TCI Communications 6.375%, 05/01/03 3,100 3,090 -------- FINANCE (15.6%) Bank of America (K) 6.625%, 06/15/04 3,500 3,723 Bank One, Ser A, MTN 5.625%, 02/17/04 4,000 4,161 Capital One Bank 6.500%, 07/30/04 1,715 1,676 CIT Group (K) 7.125%, 10/15/04 4,400 4,598 Citigroup 5.700%, 02/06/04 4,000 4,161 Duke Capital 7.250%, 10/01/04 2,000 2,025 First American Bank 7.750%, 07/15/04 5,000 5,393 Ford Motor Credit 7.500%, 03/15/05 2,000 2,035 6.875%, 02/01/06 2,000 1,976 General Motors Acceptance 6.250%, 05/01/05 1,000 1,016 General Motors Acceptance, MTN 6.380%, 01/30/04 5,000 5,112 5.800%, 03/12/03 750 755 Household Finance (K) 6.000%, 05/01/04 5,000 5,138 International Lease Finance (K) 5.750%, 10/15/06 1,974 2,031 Norwest Financial 7.600%, 05/03/05 2,500 2,772 Wachovia 6.800%, 06/01/05 3,500 3,819 Wells Fargo 7.200%, 05/01/03 2,000 2,045 -------- 52,436 -------- 23 SCHEDULE OF INVESTMENTS - -------------------------------------------------------------------------------- STI CLASSIC FIXED INCOME FUNDS NOVEMBER 30, 2002 SHORT-TERM BOND FUND--CONCLUDED - -------------------------------------------------------------------------------- FACE AMOUNT (000) VALUE (000) - -------------------------------------------------------------------------------- FOOD, BEVERAGE & TOBACCO (1.8%) Diageo Capital 3.500%, 11/19/07 $ 750 $ 734 Philip Morris 7.000%, 07/15/05 2,000 2,148 Unilever (K) 6.750%, 11/01/03 3,000 3,135 -------- 6,017 -------- INDUSTRIAL (9.2%) Alcoa 4.250%, 08/15/07 2,150 2,181 Coca Cola Enterprises 6.625%, 08/01/04 4,000 4,282 Computer Associates International (K), Ser B 6.375%, 04/15/05 1,550 1,480 Diageo Capital PLC 6.125%, 08/15/05 2,000 2,165 IBM 6.000%, 11/30/04 3,500 3,720 Ingersoll-Rand 5.800%, 06/01/04 1,900 1,977 Kellogg 6.625%, 01/29/04 3,000 3,129 Kerr-McGee 5.375%, 04/15/05 2,750 2,873 Masco (K) 6.750%, 03/15/06 1,650 1,769 Phillips Petroleum 8.500%, 05/25/05 3,500 3,941 Procter & Gamble 5.250%, 09/15/03 1,110 1,139 Weyerhaeuser 6.125%, 03/15/07 2,000 2,092 -------- 30,748 -------- INVESTMENT BANKERS/BROKER DEALERS (5.3%) Bear Stearns 6.650%, 12/01/04 3,750 4,022 Credit Suisse First Boston (K) 5.875%, 08/01/06 2,750 2,874 Goldman Sachs Group (K) 7.625%, 08/17/05 3,500 3,898 Morgan Stanley Dean Witter (K) 7.750%, 06/15/05 2,000 2,211 Paine Webber Group 6.450%, 12/01/03 3,500 3,666 6.375%, 05/15/04 1,000 1,059 -------- 17,730 -------- MEDICAL PRODUCTS (1.6%) Cardinal Health 6.500%, 02/15/04 5,000 5,250 -------- - -------------------------------------------------------------------------------- FACE AMOUNT (000) VALUE (000) - -------------------------------------------------------------------------------- REAL ESTATE INVESTMENT TRUSTS (0.7%) EOP Operating LP 7.375%, 11/15/03 $ 2,125 $ 2,209 -------- SERVICES (1.3%) Electronic Data Systems (K) 6.850%, 10/15/04 1,500 1,538 Viacom (K) 7.750%, 06/01/05 2,500 2,775 -------- 4,313 -------- TELEPHONE & TELECOMMUNICATIONS (2.5%) AT&T Wireless 7.500%, 05/01/07 2,000 1,980 British Telecom PLC 7.875%, 12/15/05 4,000 4,430 Verizon Wireless (K) 5.375%, 12/15/06 2,000 2,015 -------- 8,425 -------- TRANSPORTATION (1.6%) Union Pacific 5.840%, 05/25/04 5,000 5,235 -------- UTILITIES (8.4%) Alabama Power, Ser M 7.850%, 05/15/03 3,750 3,840 Baltimore Gas & Electric 6.125%, 07/01/03 1,750 1,785 Dominion Resources, Ser B 7.625%, 07/15/05 1,500 1,620 Duke Energy (C) 2.125%, 01/15/05 6,000 5,905 Northern States Power 6.125%, 12/01/05 5,000 5,175 Public Service, Ser 6 6.000%, 04/15/03 3,500 3,522 Scottish Power PLC, Ser H, MTN 6.750%, 07/15/04 2,500 2,647 Southern New England Telephone, Ser C, MTN 6.125%, 12/15/03 3,500 3,614 -------- 28,108 -------- Total Corporate Obligations (Cost $174,442) 178,640 -------- ASSET-BACKED OBLIGATIONS (7.2%) Bank One Issuance Trust, Ser 2002-A4, Cl A4 2.940%, 06/16/08 4,500 4,491 Capital Auto Receivables Asset Trust, Ser 2002-3, Cl A3 3.580%, 10/16/06 4,500 4,581 24 - -------------------------------------------------------------------------------- (UNAUDITED) - -------------------------------------------------------------------------------- SHARES/FACE AMOUNT (000) VALUE (000) - -------------------------------------------------------------------------------- Capital Auto Receivables Asset Trust, Ser 2002-4, Cl A4 2.640%, 03/17/08 $ 2,000 $ 1,995 Conseco Finance Home Equity Trust, Ser 2001-C, Cl A3 5.390%, 11/15/25 3,000 3,066 CoreStates Home Equity Trust, Ser 1994-1, Cl A 6.650%, 05/15/09 94 95 Equivantage Home Equity Loan Trust, Ser 1996-1, Cl A (A) 7.300%, 10/25/25 208 208 Ford Credit Auto Owner Trust, Ser 2002-A, Cl A3A 3.620%, 01/15/06 3,000 3,054 Honda Auto Receivable Owner Trust, Ser 2002-1, Cl A3 3.500%, 10/15/05 5,000 5,085 Honda Automobile Receivables Owner Trust, Ser 2002-3, Cl A4 3.610%, 12/18/07 1,500 1,522 -------- Total Asset-Backed Obligations (Cost $23,800) 24,097 -------- CASH EQUIVALENTS (7.5%) Federated Prime Obligation Money Market Fund 16,670,682 16,671 SEI Daily Income Trust Prime Obligation Fund 8,339,898 8,340 -------- Total Cash Equivalents (Cost $25,011) 25,011 -------- Total Investments (99.1%) (Cost $326,730) 331,793 -------- Other Assets and Liabilities, Net (0.9%) 3,096 -------- Net Assets (100.0%) $334,889 ======== THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS. FOR DESCRIPTIONS OF ABBREVIATIONS, PLEASE SEE PAGE 40. 25 STATEMENT OF NET ASSETS - -------------------------------------------------------------------------------- STI CLASSIC FIXED INCOME FUNDS NOVEMBER 30, 2002 SHORT-TERM U.S. TREASURY SECURITIES FUND - -------------------------------------------------------------------------------- SHARES/FACE AMOUNT (000) VALUE (000) - -------------------------------------------------------------------------------- U.S. TREASURY OBLIGATIONS (93.4%) U.S. Treasury Notes 2.750%, 10/31/03 $17,000 $ 17,198 3.000%, 11/30/03 16,500 16,743 3.250%, 12/31/03 17,000 17,308 3.000%, 01/31/04 26,000 26,414 4.750%, 02/15/04 8,500 8,819 3.625%, 03/31/04 5,000 5,126 5.250%, 05/15/04 9,000 9,451 6.000%, 08/15/04 4,000 4,274 5.875%, 11/15/04 10,000 10,731 7.500%, 02/15/05 5,000 5,573 6.500%, 08/15/05 30,000 33,214 5.750%, 11/15/05 45,000 49,106 U.S. Treasury STRIPS (D) 3.710%, 11/15/04 23,000 22,072 -------- Total U.S. Treasury Obligations (Cost $223,217) 226,029 -------- CASH EQUIVALENTS (5.9%) Federated U.S. Treasury Cash Reserves Fund 11,500,000 11,500 SEI Daily Income Trust Treasury II Fund 2,689,371 2,689 -------- Total Cash Equivalents (Cost $14,189) 14,189 -------- Total Investments (99.3%) (Cost $237,406) 240,218 -------- OTHER ASSETS AND LIABILITIES (0.7%) Investment Advisory Fee Payable (116) Distribution Fee Payable (34) Administration Fee Payable (13) Other Assets and Liabilities 1,937 -------- Total Other Assets and Liabilities, Net 1,774 -------- - -------------------------------------------------------------------------------- VALUE (000) - -------------------------------------------------------------------------------- NET ASSETS: Paid in Capital -- Trust Shares (unlimited authorization -- no par value) based on 11,655,447 outstanding shares of beneficial interest $116,804 Paid in Capital -- Investor Shares (unlimited authorization -- no par value) based on 1,011,955 outstanding shares of beneficial interest 10,378 Paid in Capital -- Flex Shares (unlimited authorization -- no par value) based on 10,794,398 outstanding shares of beneficial interest 109,927 Accumulated net realized gain on investments 2,071 Net unrealized appreciation on investments 2,812 -------- Total Net Assets (100.0%) $241,992 ======== Net Asset Value, Offering and Redemption Price Per Share -- Trust Shares $10.32 ======== Net Asset Value and Redemption Price Per Share -- Investor Shares $10.32 ======== Maximum Offering Price Per Share -- Investor Shares ($10.32 / 99.00%) $10.42 ======== Net Asset Value, Offering and Redemption Price Per Share -- Flex Shares (1) $10.30 ======== THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS. FOR DESCRIPTIONS OF ABBREVIATIONS, PLEASE SEE PAGE 40. 26 - -------------------------------------------------------------------------------- (UNAUDITED) STRATEGIC INCOME FUND - -------------------------------------------------------------------------------- FACE AMOUNT (000) VALUE (000) - -------------------------------------------------------------------------------- U.S. TREASURY OBLIGATIONS (1.4%) U.S. Treasury Bond 5.250%, 02/15/29 $1,500 $ 1,506 -------- Total U.S. Treasury Obligations (Cost $1,580) 1,506 -------- U.S. GOVERNMENT AGENCY OBLIGATIONS (1.0%) FHLMC 5.125%, 07/15/12 1,000 1,028 -------- Total U.S. Government Agency Obligations (Cost $999) 1,028 -------- U.S. GOVERNMENT MORTGAGE-BACKED OBLIGATIONS (27.6%) FHLMC REMIC, Ser 1623, Cl PG 3.000%, 07/15/21 1,000 1,003 FNMA 7.000%, 11/01/31 to 01/01/32 2,745 2,865 6.500%, 04/01/31 to 05/01/32 8,951 9,251 6.000%, 08/01/32 to 11/01/32 6,362 6,509 5.934%, 11/01/11 990 1,062 5.500%, 05/01/17 to 09/01/17 5,134 5,266 FNMA REMIC, Ser 2002-22, Cl PE 6.500%, 11/25/30 1,000 1,045 GNMA 6.000%, 12/15/31 1,811 1,865 -------- Total U.S. Government Mortgage-Backed Obligations (Cost $28,229) 28,866 -------- CORPORATE OBLIGATIONS (50.5%) AUTOPARTS (2.1%) Cummins (B) 9.500%, 12/01/10 500 525 Dana 6.500%, 03/15/08 1,000 875 Metaldyne (B) Callable 06/15/07 @ 105.5 11.000%, 06/15/12 1,000 830 -------- 2,230 -------- BROADCASTING (3.8%) Corus Entertainment Callable 03/01/07 @ 104.375 8.750%, 03/01/12 500 529 Entravision Communications Callable 03/15/06 @ 104.063 8.125%, 03/15/09 500 527 Grupo Televisa 8.500%, 03/11/32 750 694 Paxson Communications (A) Callable 01/15/06 @ 106.12 14.235%, 01/15/09 1,000 620 Sinclair Broadcasting Callable 12/09/02 @ 104.5 9.000%, 07/15/07 500 522 - -------------------------------------------------------------------------------- FACE AMOUNT (000) VALUE (000) - -------------------------------------------------------------------------------- Spanish Broadcasting Callable 11/01/04 @ 104.813 9.625%, 11/01/09 $1,000 $ 1,035 -------- 3,927 -------- BUILDING & CONSTRUCTION (1.1%) Standard Pacific 9.250%, 04/15/12 250 246 WCI Communities Callable 02/15/06 @ 105.313 10.625%, 02/15/11 500 487 WCI Communities Callable 05/01/07 @ 104.56 9.125%, 05/01/12 500 448 -------- 1,181 -------- CABLE (4.1%) Adelphia Communication (J) 10.875%, 10/01/10 750 292 British Sky Broadcasting 7.300%, 10/15/06 500 516 Charter Communications Holdings 10.750%, 10/01/09 750 379 Continental Cablevision 8.300%, 05/15/06 1,000 1,030 Echostar DBS Callable 01/15/06 @ 104.563 9.125%, 01/15/09 500 512 Echostar DBS Callable 10/01/04 @ 105.188 10.375%, 10/01/07 600 630 Mediacom LLC Callable 4/15/03 @ 104.25 8.500%, 04/15/08 250 223 Mediacom LLC, Ser B Callable 01/15/06 @ 104.75 9.500%, 01/15/13 750 668 -------- 4,250 -------- CHEMICALS (1.5%) Compass Minerals Group Callable 08/15/06 @ 105 10.000%, 08/15/11 500 540 IMC Global, Ser B Callable 06/01/06 @ 105.63 11.250%, 06/01/11 500 556 Methanex 8.750%, 08/15/12 250 267 OM Group Callable 12/15/06 @ 104.625 9.250%, 12/15/11 500 213 -------- 1,576 -------- 27 STATEMENT OF NET ASSETS - -------------------------------------------------------------------------------- STI CLASSIC FIXED INCOME FUNDS NOVEMBER 30, 2002 STRATEGIC INCOME FUND--CONTINUED - -------------------------------------------------------------------------------- FACE AMOUNT (000) VALUE (000) - -------------------------------------------------------------------------------- CONSUMER PRODUCTS (2.3%) American Achievement, Ser B Callable 01/01/05 @ 105.813 11.625%, 01/01/07 $ 750 $ 795 Chattem Ser B, Callable 04/01/03 @ 104.438 8.875%, 04/01/08 1,000 1,030 Hasbro 6.600%, 07/15/28 750 615 -------- 2,440 -------- ENERGY (2.5%) Chesapeake Energy 9.000%, 08/15/12 1,000 1,065 Pemex Master (B) 7.875%, 02/01/09 500 523 Stone Energy Callable 12/15/06 @ 104.125 8.250%, 12/15/11 200 208 Swift Energy Callable 05/01/07 @ 104.688 9.375%, 05/01/12 500 480 Tesoro Petroleum, Ser B Callable 11/01/05 @ 104.81 9.625%, 11/01/08 500 355 -------- 2,631 -------- ENTERTAINMENT (3.4%) Kerzner International Callable 08/15/06 @ 104.438 8.875%, 08/15/11 750 769 Mandalay Resort Group 10.250%, 08/01/07 1,000 1,087 Resort International Callable 3/15/07 @ 106 11.500%, 03/15/09 500 447 Six Flags Callable 02/01/06 @ 104.44 8.875%, 02/01/10 750 698 Venetian Casino (B) Callable 06/15/06 @ 105.5 11.000%, 06/15/10 500 520 -------- 3,521 -------- FINANCE (1.2%) Americredit (B) Callable 05/11/06 @ 104.63 9.250%, 05/01/09 1,000 780 Capital One 8.750%, 02/01/07 500 479 -------- 1,259 -------- - -------------------------------------------------------------------------------- FACE AMOUNT (000) VALUE (000) - -------------------------------------------------------------------------------- FOOD, BEVERAGE & TOBACCO (2.0%) B&G Foods Callable 08/01/03 @ 103.208 9.625%, 08/01/07 $ 625 $ 644 Burns Philp Ltd (B) Callable 07/15/07 @ 104.875 9.750%, 07/15/12 1,000 1,011 Land O Lakes, Ser B Callable 11/15/06 @ 104.38 8.750%, 11/15/11 750 427 -------- 2,082 -------- HOTELS & LODGING (0.7%) Mersitar Hospital Callable 12/15/05 @ 105.25 10.500%, 06/15/09 750 724 -------- INDUSTRIAL (4.6%) AK Steel (B) Callable 06/15/07 @ 103.875 7.750%, 06/15/12 1,000 1,010 Constar Callable 12/01/07 @ 105.5 11.000%, 12/01/12 500 493 Foamex LP (B) Callable 04/01/06 @ 105.375 10.750%, 04/01/09 500 360 IPC Acquistion Callable 12/15/05 @ 105.75 11.500%, 12/15/09 200 170 Kennametal 7.200%, 06/15/12 250 252 NMGH Holding Callable 05/15/06 @ 105 10.000%, 05/15/09 500 510 Trimas (B) Callable 06/15/07 @ 104.938 9.875%, 06/15/12 1,000 1,015 Xerox 5.500%, 11/15/03 1,000 965 -------- 4,775 -------- MEDICAL & MEDICAL PRODUCTS (5.2%) Amerisourcebergen (B) 7.250%, 11/15/12 500 520 Fisher Scientific International Callable 02/01/03 @ 104.5 9.000%, 02/01/08 1,000 1,047 Healthsouth Callable 10/01/04 @ 105.375 10.750%, 10/01/08 750 634 28 - -------------------------------------------------------------------------------- (UNAUDITED) - -------------------------------------------------------------------------------- FACE AMOUNT (000) VALUE (000) - -------------------------------------------------------------------------------- Pacificare Health Systems Callable 06/01/06 @ 105.375 10.750%, 06/01/09 $1,000 $ 1,070 Rotech Healthcare (B) Callable 04/01/07 @ 104.75 9.500%, 04/01/12 625 628 United Surgical Partners Callable 12/15/06 @ 105 10.000%, 12/15/11 1,000 1,031 US Oncology Callable 02/01/07 @ 104.813 9.625%, 02/01/12 500 508 -------- 5,438 -------- PRINTING & PUBLISHING (1.5%) Dex Media East Callable 11/15/07 @ 106.063 12.125%, 11/15/12 1,000 1,084 Von Hoffman 10.250%, 03/15/09 500 470 -------- 1,554 -------- REAL ESTATE INVESTMENT TRUSTS (1.7%) Crescent Real Estate Callable 04/15/06 @ 104.625 9.250%, 04/15/09 750 772 Ventas Realty LP 9.000%, 05/01/12 1,000 1,015 -------- 1,787 -------- RETAIL (3.7%) Asbury Automotive Group Callable 06/15/07 @ 104.5 9.000%, 06/15/12 1,000 920 Fleming Callable 05/01/07 @ 104.94 9.875%, 05/01/12 250 152 Fleming, Ser D Callable 02/06/03 @ 105.31 10.625%, 07/31/07 500 337 Great Atlantic Callable 12/15/06 @ 104.563 9.125%, 12/15/11 500 363 Ingles Markets Callable 12/01/06 @ 104.438 8.875%, 12/01/11 500 463 Office Depot 10.000%, 07/15/08 500 568 Roundy's (B) Callable 06/15/07 @ 104.438 8.875%, 06/15/12 1,000 1,005 -------- 3,808 -------- - -------------------------------------------------------------------------------- FACE AMOUNT (000) VALUE (000) - -------------------------------------------------------------------------------- SERVICE INDUSTRIES (1.9%) Allied Waste (B) 9.250%, 09/01/12 $ 500 $ 517 Coinmach Callable 02/01/06 @ 104.5 9.000%, 02/01/10 500 525 IESI (B) Callable 06/15/07 @ 105.12 10.250%, 06/15/12 500 488 Service International (B) 7.700%, 04/15/09 500 480 -------- 2,010 -------- TELEPHONE & TELECOMMUNICATIONS (5.3%) AT&T Wireless Services 8.750%, 03/01/31 500 462 Crown Castle International Callable 08/01/05 @ 105.375 10.750%, 08/01/11 500 449 Intermedia Communication, Ser B (J) Callable 02/06/03 @ 105.62 11.250%, 07/15/07 750 360 Panamsat (B) Callable 02/01/07 @ 104.25 9.000%, 02/01/12 1,000 977 Rogers Cantel Callable 06/01/03 @ 104.69 9.375%, 06/01/08 750 705 Sprint Capital 6.125%, 11/15/08 500 433 Triton PCS (A) 12.780%, 05/01/08 1,000 880 TSI Telecommunications, Ser B Callable 02/01/06 @ 106.375 12.750%, 02/01/09 500 438 Voicestream Wireless (A) Callable 11/15/04 @ 105.94 13.537%, 11/15/09 1,000 850 -------- 5,554 -------- TRANSPORTATION (0.3%) Laidlaw, Ser B, Callable 02/06/03 @ 105.75 11.500%, 04/15/07 500 355 -------- UTILITIES (1.6%) Calpine 8.500%, 02/15/11 500 226 El Paso Energy Partners (B) Callable 06/01/06 @ 104.25 8.500%, 06/01/11 750 685 29 STATEMENT OF NET ASSETS - -------------------------------------------------------------------------------- STI CLASSIC FIXED INCOME FUNDS NOVEMBER 30, 2002 STRATEGIC INCOME FUND--CONCLUDED - -------------------------------------------------------------------------------- FACE AMOUNT (000) VALUE (000) - -------------------------------------------------------------------------------- El Paso Energy Partners, Ser B Callable 12/01/06 @ 104.25 8.500%, 06/01/11 $ 250 $ 228 Mission Energy 13.500%, 07/15/08 1,000 220 Plains All American Pipeline (B) 7.750%, 10/15/12 250 259 -------- 1,618 -------- Total Corporate Obligations (Cost $57,121) 52,720 -------- FOREIGN GOVERNMENT DEBT SECURITIES (13.6%) AUSTRALIA (1.4%) Australian Government (AUD) 6.750%, 11/15/06 2,500 1,484 -------- 1,484 -------- CANADA (1.6%) Canadian Government (CAD) 5.750%, 09/01/06 2,500 1,698 -------- 1,698 -------- FRANCE (1.8%) Government of France (EUR) 6.500%, 10/25/06 1,700 1,862 -------- 1,862 -------- GERMANY (2.8%) Deutschland Republic (EUR) 6.000%, 01/05/06 2,700 2,879 -------- 2,879 -------- ITALY (2.0%) Buoni Poliennali del Tesoro (EUR) 5.250%, 08/01/17 2,000 2,060 -------- 2,060 -------- SPAIN (2.4%) Government of Spain (EUR) 6.000%, 01/31/08 2,300 2,506 -------- 2,506 -------- UNITED KINGDOM (1.6%) United Kingdom (GBP) 7.500%, 12/07/06 1,000 1,728 -------- 1,728 -------- Total Foreign Government Debt Securities (Cost $12,610) 14,217 -------- - -------------------------------------------------------------------------------- SHARES VALUE (000) - -------------------------------------------------------------------------------- CASH EQUIVALENT (3.1%) Dreyfus Government Cash Management 3,220,206 $ 3,220 -------- Total Cash Equivalent (Cost $3,220) 3,220 -------- Total Investments (97.2%) (Cost $103,759) 101,557 -------- OTHER ASSETS AND LIABILITIES (2.8%) Investment Advisory Fee Payable (63) Custodian Fee Payable (9) Distribution Fee Payable (20) Administration Fee Payable (6) Other Assets and Liabilities 3,018 -------- Total Other Assets and Liabilities, Net 2,920 -------- NET ASSETS: Paid in Capital -- Trust Shares (unlimited authorization -- no par value) based on 5,497,998 outstanding shares of beneficial interest 53,844 Paid in Capital -- Flex Shares (unlimited authorization -- no par value) based on 5,447,007 outstanding shares of beneficial interest 53,270 Distributions in excess of net investment income (1,435) Accumulated net realized gain on investments 824 Net unrealized depreciation on investments (2,202) Net unrealized appreciation on forward foreign currency contracts, foreign currencies and translation of other assets and liabilities denominated in foreign currencies 176 -------- Total Net Assets (100.0%) $104,477 ======== Net Asset Value, Offering and Redemption Price Per Share -- Trust Shares $9.55 ======== Net Asset Value, Offering and Redemption Price Per Share -- Flex Shares (1) $9.55 ======== THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS. FOR DESCRIPTIONS OF ABBREVIATIONS, PLEASE SEE PAGE 40. 30 - -------------------------------------------------------------------------------- (UNAUDITED) U.S. GOVERNMENT SECURITIES FUND - -------------------------------------------------------------------------------- FACE AMOUNT (000) VALUE (000) - -------------------------------------------------------------------------------- U.S. TREASURY OBLIGATIONS (12.1%) U.S. Treasury Notes 6.125%, 08/15/29 $ 5,000 $ 5,648 5.250%, 02/15/29 6,000 6,023 4.375%, 08/15/12 (K) 10,000 10,124 4.000%, 11/15/12 (K) 10,000 9,826 -------- Total U.S. Treasury Obligations (Cost $32,208) 31,621 -------- U.S. GOVERNMENT AGENCY OBLIGATIONS (9.3%) FHLMC 6.750%, 03/15/31 5,000 5,756 5.750%, 01/15/12 6,600 7,102 FNMA 6.625%, 11/15/10 10,000 11,385 -------- Total U.S. Government Agency Obligations (Cost $22,913) 24,243 -------- U.S. GOVERNMENT MORTGAGE-BACKED OBLIGATIONS (76.1%) FHLMC 7.000%, 01/01/09 to 06/01/17 2,811 2,967 6.500%, 03/01/12 to 05/01/31 12,880 13,419 5.500%, 04/01/17 8,696 8,925 1.650%, 08/27/05 4,145 4,124 FHLMC REMIC, Ser 1623, Cl PG 3.000%, 07/15/21 4,500 4,513 FHLMC REMIC, Ser 2039, Cl PC 6.000%, 05/15/09 260 260 FNMA 7.000%, 05/01/31 to 06/01/32 24,211 25,279 6.500%, 06/01/13 to 05/01/32 21,721 22,468 6.290%, 08/01/18 1,338 1,391 6.000%, 11/01/07 to 11/01/32 62,922 64,629 5.934%, 11/01/11 3,960 4,247 5.500%, 09/01/17 9,847 10,101 FNMA REMIC, Ser 143, Cl J 8.750%, 12/25/20 19 21 FNMA REMIC, Ser 2002-22, Cl PE 6.500%, 11/25/30 6,000 6,273 FNMA, Ser 2002-M2, Cl C 4.717%, 08/25/12 5,000 4,863 GNMA 7.500%, 10/20/09 to 01/15/28 1,198 1,280 6.500%, 10/15/23 to 11/15/31 10,899 11,349 6.250%, 10/15/28 920 953 6.000%, 07/15/13 to 12/15/31 10,659 11,007 -------- Total U.S. Government Mortgage-Backed Obligations (Cost $194,012) 198,069 -------- - -------------------------------------------------------------------------------- SHARES VALUE (000) - -------------------------------------------------------------------------------- CASH EQUIVALENTS (2.0%) Federated Prime Money Market Obligations 2,391,764 $ 2,392 SEI Daily Income Trust Government II Fund 2,763,316 2,763 -------- Total Cash Equivalents (Cost $5,155) 5,155 -------- Total Investments (99.5%) (Cost $254,288) 259,088 -------- OTHER ASSETS AND LIABILITIES (0.5%) Collateral Received on Securities Loaned 9,131 Payable upon Return of Securities Loaned (9,131) Investment Advisory Fee Payable (152) Distribution Fee Payable (26) Administration Fee Payable (15) Other Assets and Liabilities 1,398 -------- Total Other Assets and Liabilities, Net 1,205 -------- NET ASSETS: Paid in Capital -- Trust Shares (unlimited authorization -- no par value) based on 20,412,390 outstanding shares of beneficial interest 213,699 Paid in Capital -- Investor Shares (unlimited authorization -- no par value) based on 430,441 outstanding shares of beneficial interest 4,367 Paid in Capital -- Flex Shares (unlimited authorization -- no par value) based on 3,464,049 outstanding shares of beneficial interest 36,860 Distributions in excess of net investment income (285) Accumulated net realized gain on investments 852 Net unrealized appreciation on investments 4,800 -------- Total Net Assets (100.0%) $260,293 ======== Net Asset Value, Offering and Redemption Price Per Share -- Trust Shares $10.71 ======== Net Asset Value and Redemption Price Per Share -- Investor Shares $10.71 ======== Maximum Offering Price Per Share -- Investor Shares ($10.71 / 96.25%) $11.13 ======== Net Asset Value, Offering and Redemption Price Per Share -- Flex Shares (1) $10.71 ======== THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS. FOR DESCRIPTIONS OF ABBREVIATIONS, PLEASE SEE PAGE 40. 31 STATEMENT OF NET ASSETS - -------------------------------------------------------------------------------- STI CLASSIC FIXED INCOME FUNDS NOVEMBER 30, 2002 VIRGINIA INTERMEDIATE MUNICIPAL BOND FUND - -------------------------------------------------------------------------------- FACE AMOUNT (000) VALUE (000) - -------------------------------------------------------------------------------- MUNICIPAL BONDS (96.1%) VIRGINIA (95.1%) Albemarle County, Industrial Development Authority, Residential Care Facilities, Ser A, RB Callable 01/01/05 @ 101 5.000%, 01/01/07 $1,500 $ 1,540 Alexandria, Industrial Development Authority, Association for Supervision & Curriculum Project, RB (C) (E) Callable 01/02/03 @ 100 1.300%, 07/01/23 1,560 1,560 Arlington County, Industrial Development Authority, Alexandria/Arlington Project, Ser A, RB, FSA 5.250%, 01/01/05 4,000 4,272 Arlington County, Industrial Development Authority, Alexandria/Arlington Waste Project, Ser B, RB, AMT, FSA Callable 07/01/08 @ 101 5.375%, 01/01/11 2,785 2,951 Arlington County, Industrial Development Authority, Arlington Health Systems, RB 5.500%, 07/01/06 2,000 2,173 Arlington County, Industrial Development Authority, Arlington Health Systems, RB Callable 07/01/11 @ 101 5.500%, 07/01/17 1,725 1,795 Arlington County, Industrial Development Authority, Hospital Center Arlington Health Systems, RB 5.500%, 07/01/11 2,000 2,159 Bristol, Public Improvement, GO, FSA Callable 11/01/12 @ 102 5.250%, 11/01/14 1,100 1,206 Bristol, Utility Systems, GO, FSA Callable 11/01/12 @ 102 5.500%, 11/01/16 1,190 1,315 Bristol, Utility Systems, RB, FSA Callable 07/15/11 @ 102 5.750%, 07/15/14 1,055 1,190 - -------------------------------------------------------------------------------- FACE AMOUNT (000) VALUE (000) - -------------------------------------------------------------------------------- Chesapeake Bay, Bridge & Tunnel Commission, General Resolution, RB, MBIA 5.500%, 07/01/25 $2,000 $ 2,148 Chesapeake, GO 5.400%, 12/01/08 2,500 2,811 Chesapeake, Public Improvement Project, GO 5.500%, 12/01/10 2,500 2,808 Chesterfield County, Industrial Development Authority Revenue, Virginia State University Real Estate, Ser A, RB (C)(E) Callable 01/01/03 @ 100 1.450%, 07/01/29 1,200 1,200 Danville-Pittsylvania, Regional Advanced Institute, RB (C)(E) Callable 12/04/02 @ 100 1.200%, 08/01/12 1,800 1,800 Fairfax County, Industrial Development Authority, Health Care Inova Health System Project, RB Callable 08/15/06 @ 102 5.300%, 08/15/07 1,500 1,637 Fairfax County, Industrial Development Authority, Health Care Inova Health System Project, Ser A, RB Callable 02/15/08 @ 101 5.000%, 08/15/10 2,890 3,031 Fairfax County, Water Authority, RB Callable 04/01/07 @ 102 6.000%, 04/01/22 5,315 5,907 Fairfax County, Water Authority, RB Callable 04/01/10 @ 101 6.000%, 04/01/14 1,125 1,266 Fairfax County, Water Authority, RB Callable 04/01/12 @ 100 5.500%, 04/01/14 2,000 2,217 Greater Richmond Convention Center Authority, Convention Center Expansion Project, RB 5.500%, 06/15/10 700 764 5.250%, 06/15/05 460 493 5.000%, 06/15/03 1,000 1,018 32 - -------------------------------------------------------------------------------- (UNAUDITED) - -------------------------------------------------------------------------------- FACE AMOUNT (000) VALUE (000) - -------------------------------------------------------------------------------- Greater Richmond Convention Center Authority, Convention Center Expansion Project, RB Callable 6/15/10 @ 101 6.000%, 06/15/11 $1,170 $ 1,309 6.000%, 06/15/13 3,185 3,523 Halifax County, Industrial Development Authority, Old Dominion Electric Cooperative Project, RB, AMT 5.125%, 12/01/02 1,190 1,190 Hampton, Museum Project, RB Callable 01/01/04 @ 102 5.250%, 01/01/09 2,000 2,073 Hampton, Public Improvement, GO (E) Callable 01/15/08 @ 102 5.000%, 01/15/10 1,200 1,294 Hampton, Public Improvement, Ser A, GO Callable 07/15/12 @ 101 5.500%, 07/15/18 1,275 1,380 Hanover County, Industrial Development Authority, Memorial Regional Medical Center Project, RB, MBIA 6.375%, 08/15/18 6,000 7,145 Harrisonburg, Industrial Development Authority, Rockingham Memorial Hospital Project, RB, MBIA Callable 01/06/03 @ 102 5.750%, 12/01/13 3,000 3,067 Henrico County, Industrial Development Authority, Governmental Projects, RB Callable 06/01/06 @ 102 5.150%, 06/01/07 2,500 2,741 Henrico County, Industrial Development Authority, Solid Waste Facility, Browning Ferris Project, RB, AMT 5.300%, 12/01/11 1,000 946 Henry County, GO Callable 07/15/04 @ 102 6.000%, 07/15/14 1,000 1,071 Henry County, Public Service Authority, RB, FSA 5.000%, 11/15/08 1,990 2,185 James City County, Industrial Development Authority, Residential Care Facility, RB Callable 01/06/03 @ 102 6.625%, 03/01/23 1,000 1,011 - -------------------------------------------------------------------------------- FACE AMOUNT (000) VALUE (000) - -------------------------------------------------------------------------------- James City County, Industrial Development Authority, Residential Care Facility, RB Callable 01/06/03 @ 102 6.625%, 03/01/19 $1,750 $ 1,774 James City County, Industrial Development Authority, Residential Care Facility, Ser B, RB Callable 09/01/04 @ 101 5.375%, 03/01/26 1,900 1,922 Loudoun County, Sanitation Authority, Water & Sewer, RB, FGIC Callable 01/01/03 @ 102 6.100%, 01/01/04 1,250 1,280 Lynchburg, Industrial Development Authority, Health Care Facility, RB 5.000%, 01/01/08 1,180 1,258 Lynchburg, Industrial Development Authority, Recreational Facilities Revenue, RB (C) (E) Callable 12/04/02 @ 100 1.300%, 05/01/23 2,000 2,000 Lynchburg, Industrial Development Authority, Residential Care Facility, The Summit Project, Ser A, RB Callable 01/01/05 @ 101 4.750%, 01/01/06 1,750 1,757 Montgomery County, Industrial Development Authority, RB, AMBAC Callable 01/15/12 @ 101 5.500%, 01/15/18 1,865 2,010 Newport News General Water, Ser B, GO 5.250%, 07/01/15 3,000 3,290 Newport News, Industrial Development Authority, Advanced Shipbuilding Carrier Project, RB 5.500%, 09/01/09 2,500 2,813 Norfolk, GO Callable 06/01/04 @ 101 5.250%, 06/01/08 5,000 5,293 Norfolk, Industrial Development Authority, Children's Hospital Project, RB, AMBAC 6.900%, 06/01/06 1,000 1,143 Norfolk, Industrial Development Authority, Sentara Hospital Project, Ser A, RB Callable 11/01/04 @ 102 5.000%, 11/01/08 2,500 2,614 33 STATEMENT OF NET ASSETS - -------------------------------------------------------------------------------- STI CLASSIC FIXED INCOME FUNDS NOVEMBER 30, 2002 VIRGINIA INTERMEDIATE MUNICIPAL BOND FUND--CONTINUED - -------------------------------------------------------------------------------- FACE AMOUNT (000) VALUE (000) - -------------------------------------------------------------------------------- Norfolk, Redevelopment & Housing Authority, Educational Facilities Revenue, Tidewater Community College Campus Project, RB Callable 11/01/05 @ 102 5.800%, 11/01/08 $ 700 $ 781 Pittsylvania County, GO Callable 01/06/03 @ 100 4.000%, 06/01/03 1,375 1,378 Portsmouth, GO Prerefunded @ 102 (F) 5.450%, 08/01/03 150 157 Richmond, GO, FSA 5.250%, 01/15/09 1,470 1,625 Richmond, GO, FSA Callable 01/15/11 @ 101 5.500%, 01/15/12 2,000 2,234 5.500%, 01/15/18 2,755 2,972 Richmond, Ser B, GO, FSA 5.000%, 07/15/11 2,500 2,709 Richmond, Industrial Development Authority, Atmore Corporation Project, RB, AMBAC 4.750%, 07/15/08 860 930 Richmond, Metropolitan Authority Expressway, Ser A, RB, FGIC Callable 12/16/02 @ 102 5.900%, 07/15/03 1,270 1,298 Roanoke, Industrial Development Authority, Carilion Health Systems Project, Ser A, RB, MBIA 5.250%, 07/01/11 1,000 1,089 Roanoke, Industrial Development Authority, Carilion Health Systems Project, Ser A, RB, MBIA Callable 07/01/12 @ 100 5.750%, 07/01/13 2,000 2,244 5.750%, 07/01/14 2,000 2,227 5.500%, 07/01/18 2,000 2,124 Roanoke, Public Improvement Project, Ser B, GO, AMT, FGIC 5.000%, 10/01/11 1,300 1,374 Southwest Virginia, Regional Jail Authority, GO Callable 01/06/03 @ 100 4.000%, 10/31/03 800 807 Suffolk, GO Callable 08/01/03 @ 102 5.600%, 08/01/06 2,000 2,092 - -------------------------------------------------------------------------------- FACE AMOUNT (000) VALUE (000) - -------------------------------------------------------------------------------- Virginia Beach, Development Authority, Public Facility Town Center Project Phase I, Ser A, RB Callable 08/01/12 @ 100 5.375%, 08/01/16 $1,650 $ 1,765 Virginia Beach, Development Authority, Senatra Life Care Project, Callable 11/01/03 @ 100 7.750%, 11/01/21 1,000 1,024 Virginia Beach, GO 5.450%, 07/15/11 1,000 1,116 Virginia Beach, Public Improvement, GO 5.250%, 03/01/08 1,695 1,873 Virginia College Building Authority, Public Higher Education, Ser A, RB 5.500%, 09/01/09 1,415 1,592 Virginia College, Building Authority, Public Higher Education Financing Program, Ser A, RB 5.000%, 09/01/11 1,510 1,638 Virginia College, Building Authority, Public Higher Education, Ser A, RB 5.500%, 09/01/06 1,135 1,259 Virginia College, Building Authority, Washington & Lee University, RB 5.375%, 01/01/21 2,845 3,055 Virginia Commonwealth, Transportation Board, Federal Highway Reimbursement, RB 5.500%, 10/01/04 2,500 2,673 5.500%, 10/01/05 2,500 2,735 5.500%, 10/01/06 2,000 2,223 Virginia Commonwealth, Transportation Board, Northern Transportation District Project, Ser A, RB Callable 05/01/11 @ 100 5.375%, 05/15/13 2,045 2,234 Virginia Commonwealth Transportation Board, Route 28 Project, RB Callable 04/01/12 @ 100 5.000%, 04/01/18 2,780 2,853 Virginia Polytechnic Institute & State University, Ser A, RB Callable 06/01/06 @ 102 5.350%, 06/01/09 2,000 2,170 34 - -------------------------------------------------------------------------------- (UNAUDITED) - -------------------------------------------------------------------------------- FACE AMOUNT (000) VALUE (000) - -------------------------------------------------------------------------------- Virginia Polytechnic Institute & State University Revenue, Ser A, RB 5.750%, 06/01/06 $ 750 $ 832 Virginia State, Biotechnology Research Park Authority, Consolidated Laboratories Project, RB Callable 09/01/11 @ 100 5.125%, 09/01/16 2,100 2,199 Virginia State, College Building Authority, Public Higher Education Project, Ser A, RB Callable 09/01/10 @ 100 5.125%, 09/01/16 2,500 2,605 Virginia State, Education Loan Authority, Guaranteed Student Loan Program, Ser B, RB, AMT 5.550%, 09/01/10 1,800 1,963 Virginia State, Housing Development Authority, Commonwealth Mortgage Project, Ser I, Sub Ser I-1, RB, AMT 3.750%, 07/01/05 1,000 1,030 Virginia State, Housing Development Authority, Multi- Family Housing, Ser E, RB Callable 01/01/08 @ 102 5.350%, 11/01/11 1,250 1,315 Virginia State, Housing Development Authority, Multi- Family Housing, Ser I, RB, AMT Callable 01/01/09 @ 101 4.875%, 11/01/12 1,950 2,002 Virginia State, Housing Development Authority, Rental Housing, Ser H, RB, AMT Callable 11/01/09 @ 100 5.625%, 11/01/18 3,500 3,607 Virginia State, Housing Development Authority, Ser C, Sub-ser C-1, RB Callable 01/01/08 @ 102 5.100%, 07/01/14 1,500 1,545 Virginia State, Housing Development Authority, Sub- Ser J-1, RB, MBIA Callable 07/01/11 @ 100 4.875%, 07/01/13 2,500 2,571 - -------------------------------------------------------------------------------- SHARES/FACE AMOUNT (000) VALUE (000) - -------------------------------------------------------------------------------- Virginia State, Public Building Authority, Ser A, RB Callable 08/01/07 @ 101 6.000%, 08/01/08 $1,000 $ 1,130 Virginia State, Public School Authority, School Financing Project, Ser A, RB 5.250%, 08/01/07 2,000 2,212 Virginia State, Public School Authority, School Financing Project, Ser I, RB 5.250%, 08/01/09 5,000 5,540 Virginia State, Public School Authority, Ser B, GO Callable 08/01/10 @ 101 5.000%, 08/01/13 2,910 3,104 Virginia State, Resources Authority, Airports, Ser A, RB Callable 02/01/11 @ 100 5.250%, 08/01/17 1,000 1,050 Virginia State, Resources Authority, RB 5.000%, 04/01/11 1,265 1,368 5.000%, 04/01/12 1,225 1,325 Virginia State, Resources Authority, Ser D, RB Callable 05/01/10 @ 101 5.000%, 05/01/13 1,485 1,580 York County , GO 5.000%, 07/15/09 1,545 1,688 196,267 -------- DISTRICT OF COLUMBIA (1.0%) Metropolitan Washington DC, Airports Authority, RB, FSA Callable 10/01/12 @ 100 5.375%, 10/01/19 2,000 2,053 -------- Total Municipal Bonds (Cost $192,772) 198,320 -------- CASH EQUIVALENT (1.7%) Federated Tax-Free Obligation Fund 3,462,046 3,462 -------- Total Cash Equivalent (Cost $3,462) 3,462 -------- Total Investments (97.8%) (Cost $196,234) 201,782 -------- OTHER ASSETS AND LIABILITIES (2.2%) Investment Advisory Fee Payable (111) Administration Fee Payable (12) Other Assets and Liabilities 4,557 -------- Total Other Assets and Liabilities, Net 4,434 -------- 35 STATEMENT OF NET ASSETS - -------------------------------------------------------------------------------- STI CLASSIC FIXED INCOME FUNDS NOVEMBER 30, 2002 VIRGINIA INTERMEDIATE MUNICIPAL BOND FUND--CONCLUDED - -------------------------------------------------------------------------------- VALUE (000) - -------------------------------------------------------------------------------- NET ASSETS: Paid in Capital -- Trust Shares (unlimited authorization -- no par value) based on 19,196,771 outstanding shares of beneficial interest $191,316 Paid in Capital -- Investor Shares (unlimited authorization -- no par value) based on 710,423 outstanding shares of beneficial interest 7,333 Undistributed net investment income 14 Accumulated net realized gain on investments 2,005 Net unrealized appreciation on investments 5,548 -------- Total Net Assets (100.0%) $206,216 ======== Net Asset Value, Offering and Redemption Price Per Share -- Trust Shares $10.36 ======== Net Asset Value and Redemption Price Per Share -- Investor Shares $10.36 ======== Maximum Offering Price Per Share -- Investor Shares ($10.36 / 96.25%) $10.76 ======== THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS. FOR DESCRIPTIONS OF ABBREVIATIONS, PLEASE SEE PAGE 40. 36 - -------------------------------------------------------------------------------- (UNAUDITED) VIRGINIA MUNICIPAL BOND FUND - -------------------------------------------------------------------------------- FACE AMOUNT (000) VALUE (000) - -------------------------------------------------------------------------------- MUNICIPAL BONDS (98.3%) VIRGINIA (98.3%) Albemarle County, Industrial Development Authority, Zion Place Project, Ser A, RB Callable 06/01/12 @ 101 6.000%, 06/01/22 $ 830 $ 822 Amherst County, Service Authority, RB Callable 12/15/10 @ 102 6.000%, 12/15/20 500 518 6.000%, 12/15/30 1,750 1,792 Arlington County, Industrial Development Authority, Hospital Facilities, RB Callable 07/01/11 @ 101 5.500%, 07/01/13 1,250 1,335 Brunswick County, Industrial Development Authority, RB, MBIA Callable 07/01/06 @ 102 5.700%, 07/01/10 1,000 1,111 Chesapeake Toll Revenue, Ser A, RB Callable 07/15/09 @ 101 5.625%, 07/15/32 250 251 Chesterfield County, GO Callable 01/15/10 @ 100 5.750%, 01/15/15 1,315 1,437 Chesterfield County, GO Callable 01/15/11 @ 100 5.000%, 01/15/12 1,105 1,192 Culpeper, Industrial Development Authority, Residential Care Facility, Virginia Baptist Homes Project, RB (C) (E) Callable 01/02/03 @ 100 1.300%, 08/01/30 1,500 1,500 Danville, GO, FSA 5.000%, 08/01/12 1,000 1,083 Danville, Industrial Development Authority, Danville Regional Medical Center Project, RB, AMBAC 5.200%, 10/01/18 1,435 1,532 Fairfax County, Sewer Improvement Authority, RB, MBIA Callable 07/15/06 @ 102 5.800%, 07/15/22 1,000 1,088 Fredericksburg, Industrial Development Authority, Medicorp Health System Project, RB 5.000%, 08/15/09 1,000 1,058 - -------------------------------------------------------------------------------- FACE AMOUNT (000) VALUE (000) - -------------------------------------------------------------------------------- Greater Richmond, Convention Center Authority, RB 5.250%, 06/15/05 $ 500 $ 536 Greater Richmond, Convention Center Authority, RB Callable 06/15/10 @ 101 6.125%, 06/15/25 1,200 1,310 5.900%, 06/15/16 850 923 Hampton, Golf Course Project, RB 6.000%, 12/01/12 1,260 1,320 Hampton, Museum Project, RB Callable 01/01/04 @ 102 5.250%, 01/01/09 500 518 Hanover County, Industrial Development Authority, Bon Secours Health Systems Project, RB, MBIA 6.000%, 08/15/09 1,000 1,142 Hanover County, Industrial Development Authority, Memorial Regional Medical Center Project, RB, MBIA 6.375%, 08/15/18 1,000 1,191 Henrico County, Economic Development Authority, Beth Sholom Assisted Living, Ser A, RB, GNMA Callable 07/20/09 @ 102 5.900%, 07/20/29 500 535 5.850%, 07/20/19 400 428 Henry County, Public Service Authority, RB, FSA 5.250%, 11/15/13 1,000 1,101 James City County, Development Authority, Residential Care Facility, Ser B, RB Callable 09/01/04 @ 101 5.375%, 03/01/26 500 506 King George County, Industrial Development Authority, RB 5.000%, 12/15/12 560 581 Loudoun County, Public Improvement Project, Ser B, GO (E) Callable 01/01/10 @ 101 5.250%, 01/01/18 875 915 Loudoun County, Public Improvement Project, Ser C, GO Prerefunded @ 101 (F) 5.750%, 12/01/09 1,050 1,216 37 STATEMENT OF NET ASSETS - -------------------------------------------------------------------------------- STI CLASSIC FIXED INCOME FUNDS NOVEMBER 30, 2002 VIRGINIA MUNICIPAL BOND FUND--CONCLUDED - -------------------------------------------------------------------------------- FACE AMOUNT (000) VALUE (000) - -------------------------------------------------------------------------------- Lynchburg, Industrial Development Authority, Centra Health Project, RB Callable 01/01/08 @ 101 5.250%, 01/01/11 $1,430 $ 1,498 Manassas, Prince William County Hospital, RB Callable 04/01/13 @ 100 5.250%, 04/01/33 500 484 Metropolitan Washington, Airports Authority, Ser A, RB, MBIA, AMT Callable 10/01/11 @ 101 5.500%, 10/01/27 1,000 1,027 Newport News, Redevelopment & Housing Authority, Ser A, RB, GNMA Callable 08/20/07 @ 102 5.850%, 12/20/30 500 520 Norfolk, Water, RB, AMBAC Callable 11/01/03 @ 102 4.900%, 11/01/04 965 1,012 Pittsylvania County, Ser B, GO, MBIA Callable 03/01/11 @ 102 5.625%, 03/01/15 1,000 1,116 Richmond, GO, FSA Callable 01/15/11 @ 101 5.500%, 01/15/15 1,290 1,415 5.500%, 01/15/18 1,000 1,079 Richmond, Industrial Development Authority, University Real Estate Foundation Project, RB Callable 01/01/11 @ 102 5.550%, 01/01/31 720 727 5.450%, 01/01/21 1,000 1,013 Richmond, Metropolitan Authority Expressway, RB, FGIC 5.250%, 07/15/22 1,000 1,050 Richmond, Public Utility, Ser A, RB, FGIC Callable 01/15/08 @ 101 5.250%, 01/15/12 1,000 1,079 Riverside Regional Jail Authority, RB, MBIA Callable 07/01/05 @ 102 5.875%, 07/01/14 910 995 Roanoke, Industrial Development Authority, Carilion Health System Project, Ser A, RB, MBIA 4.000%, 07/01/08 500 518 Roanoke, Industrial Development Authority, Carilion Health System Project, Ser A, RB, MBIA Callable 07/01/12 @ 100 5.500%, 07/01/21 1,000 1,044 - -------------------------------------------------------------------------------- FACE AMOUNT (000) VALUE (000) - -------------------------------------------------------------------------------- Spotsylvania County, GO, FSA 5.000%, 07/15/14 $1,000 $ 1,078 Upper Occoquan, Sewage Authority, Ser B, RB, MBIA 6.000%, 07/01/06 700 784 Virginia Beach Development Authority, General Hospital Project, RB, AMBAC 6.000%, 02/15/09 500 567 Virginia College Building Authority Educational Facilities, Ser A, RB 5.500%, 09/01/09 1,000 1,125 Virginia Commonwealth, Transportation Board, Federal Highway Reimbursement Project, RB 5.500%, 10/01/05 1,000 1,094 4.700%, 10/01/07 1,000 1,085 4.625%, 10/01/06 1,000 1,080 Virginia Commonwealth, Transportation Board, Highway Improvements Project, Ser B, RB 5.000%, 05/15/08 1,230 1,344 Virginia Commonwealth, Transportation Board, Ser A, RB Callable 05/01/11 @ 100 5.375%, 05/15/12 1,500 1,652 Virginia Housing Development Authority, Sub-Ser D-1-RMK, RB 5.250%, 07/01/03 500 510 Virginia State, Biotechnology Research Park Authority, Consolidated Laboratories Project, RB Callable 09/01/11 @ 100 5.125%, 09/01/16 1,385 1,450 Virginia State, Chesapeake Bay Bridge and Tunnel Commission, General Resolution Project, RB, FGIC 5.000%, 07/01/09 1,000 1,092 Virginia State, College Building Authority, 21st Century College & Equipment Programs, Ser A, RB Callable 02/01/12 @ 100 5.500%, 02/01/13 1,000 1,108 Virginia State, College Building Authority, Public Higher Education, Ser A, RB 5.500%, 09/01/07 1,285 1,438 38 - -------------------------------------------------------------------------------- (UNAUDITED) - -------------------------------------------------------------------------------- FACE AMOUNT (000) VALUE (000) - -------------------------------------------------------------------------------- Virginia State, College Building Authority, Public Higher Education, Ser A, RB Callable 09/01/10 @ 100 5.500%, 09/01/15 $ 500 $ 539 Virginia State, College Building Authority, Washington & Lee University Project, RB, MBIA 5.250%, 01/01/31 1,100 1,150 Virginia State, Housing Development Authority, Sub-Ser I-1, RB 3.750%, 01/01/05 1,000 1,027 Virginia State, Public Building Authority, Ser A, RB Callable 08/01/10 @ 100 5.750%, 08/01/16 1,950 2,129 Virginia State, Public School Authority, School Equipment Financing, RB 5.250%, 04/01/05 1,000 1,073 Virginia State, Public School Authority, School Financing, Ser A, RB 5.500%, 08/01/08 1,000 1,121 Virginia State, Public School Authority, Ser B, RB Callable 08/01/10 @ 101 5.000%, 08/01/14 1,000 1,057 Virginia State, Resources Authority, RB 4.500%, 05/01/08 405 432 Virginia State, Resources Authority, RB, MBIA Callable 05/01/11 @ 101 5.800%, 05/01/30 1,500 1,621 Virginia State, Resources Authority, Water and Sewer Systems, Tuckahoe Creek Service District Project, RB 4.625%, 11/01/10 510 542 Warren County, GO Callable 07/15/10 @ 102 5.600%, 07/15/20 610 643 Williamsburg, Industrial Development Authority, Williamsburg Community Hospital, RB Callable 10/01/03 @ 102 5.750%, 10/01/22 1,000 1,010 ------- 69,269 ------- - -------------------------------------------------------------------------------- SHARES VALUE (000) - -------------------------------------------------------------------------------- Total Municipal Bonds (Cost $66,389) $69,269 ------- CASH EQUIVALENT (0.4%) Federated Tax-Free Obligation Fund 254,502 255 ------- Total Cash Equivalent (Cost $255) 255 ------- Total Investments (98.7%) (Cost $66,644) 69,524 ------- OTHER ASSETS AND LIABILITIES (1.3%) Investment Advisory Fee Payable (39) Distribution Fee Payable (10) Administration Fee Payable (4) Other Assets and Liabilities 954 ------- Total Other Assets and Liabilities, Net 901 ------- NET ASSETS: Paid in Capital -- Trust Shares (unlimited authorization -- no par value) based on 5,213,325 outstanding shares of beneficial interest 52,464 Paid in Capital -- Flex Shares (unlimited authorization -- no par value) based on 1,404,208 outstanding shares of beneficial interest 14,865 Undistributed net investment income 4 Accumulated net realized gain on investments 212 Net unrealized appreciation on investments 2,880 ------- Total Net Assets (100.0%) $70,425 ======= Net Asset Value, Offering and Redemption Price Per Share -- Trust Shares $10.63 ======= Net Asset Value, Offering and Redemption Price Per Share -- Flex Shares (1) $10.68 ======= THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS. FOR DESCRIPTIONS OF ABBREVIATIONS, PLEASE SEE PAGE 40. 39 STATEMENT OF NET ASSETS - -------------------------------------------------------------------------------- STI CLASSIC FIXED INCOME FUNDS NOVEMBER 30, 2002 KEY TO ABBREVIATIONS USED IN THE STATEMENTS OF NET ASSETS/SCHEDULE OF INVESTMENTS ACA American Capital Access AMBAC Security insured by the American Municipal Bond Assurance Corporation AMT Alternative Minimum Tax Cl Class COP Certificate of Participation ETM Escrowed to Maturity FGIC Security insured by the Financial Guaranty Insurance Company FHA Federal Housing Authority FHLMC Federal Home Loan Mortgage Corporation FNMA Federal National Mortgage Association FSA Security insured by Financial Security Assurance GNMA Government National Mortgage Association GO General Obligation LLC Limited Liability Company LP Limited Partnership MBIA Security insured by the Municipal Bond Insurance Association MTN Medium Term Note PLC Public Limited Company RB Revenue Bond REMIC Real Estate Mortgage Investment Conduit Ser Series STRIPS Separately Traded Registered Interest and Principal Security (A) Step Bond -- The rate shown is the effective yield on November 30, 2002. (B) Private Placement Security (C) Variable rate security -- The rate shown is the effective yield on November 30, 2002. (D) Zero Coupon Bond -- The rate shown is the effective yield at the time of purchase. (E) Securities are held in connection with a letter of credit issued by a major bank. (F) Prerefunded Security -- The maturity date shown is the prerefunded date. (G) Tri-Party Repurchase Agreement (H) Security purchased on a when-issued basis. (I) Security in default on interest and principal. (J) Security in default on interest payments. (K) This security or a partial position of this security is on loan at November 30, 2002 (see note 11 in the Notes to the Financial Statements). The total value of securities on loan at November 30, 2002 was $9,215,298, $72,435,833, $4,858,130, $71,715,899 and $8,891,180 for the High Income, Invesment Grade Bond, Limited-Term Federal Mortgage Securities, Short-Term Bond and U.S. Government Securities Funds, respectively. (1) Flex Shares have a contingent deferred sales charge. For a description of a possible sales charge, see note 2 in the Notes to the Financial Statements. CURRENCY LEGEND (AUD) Australian Dollar (CAD) Canadian Dollar (EUR) Euro Dollar (GBP) British Pound 40 STATEMENT OF ASSETS AND LIABILITIES - -------------------------------------------------------------------------------- STI CLASSIC FIXED INCOME FUNDS NOVEMBER 30, 2002 (UNAUDITED)
HIGH INVESTMENT INVESTMENT GRADE INCOME GRADE BOND TAX-EXEMPT SHORT-TERM FUND FUND BOND FUND BOND FUND ------ ------- ------------ ----------- ASSETS: Investments at Market Value (Cost $85,846, $872,434, $229,117 and $326,730, respectively) ...................................... $76,499 $900,407 $231,848 $331,793 Cash ............................................................... 318 1,407 128 475 Receivable for Investment Securities Sold .......................... -- -- 16,827 -- Receivable for Portfolio Shares Sold ............................... 43 331 320 430 Collateral Received on Securities Loaned ........................... 9,750 74,675 -- 75,369 Accrued Income ..................................................... 2,064 9,435 2,909 3,748 Other Receivables .................................................. 27 148 22 7 ------- -------- -------- -------- Total Assets ....................................................... 88,701 986,403 252,054 411,822 ------- -------- -------- -------- LIABILITIES: Payable upon Return of Securities Loaned ........................... 9,750 74,675 -- 75,369 Payable for Investment Securities Purchased ........................ 1,018 62 37,248 -- Income Distribution Payable ........................................ 565 3,292 453 901 Payable for Portfolio Shares Redeemed .............................. 3 869 256 448 Payable for Investment Advisor Fees ................................ 40 539 125 167 Payable for Distribution Fees ...................................... 17 29 24 11 Payable for Administration Fees .................................... 4 51 12 19 Payable for Custodian Fees ......................................... -- -- 1 1 Accrued Expense Payable ............................................ 7 64 23 17 Other Payables ..................................................... 2 -- 19 -- Total Liabilities .................................................. 11,406 79,581 38,161 76,933 ------- -------- -------- -------- Total Net Assets ................................................... $77,295 $906,822 $213,893 $334,889 ======= ======== ======== ======== NET ASSETS: Fund shares of the Trust Shares (unlimited authorization -- no par value) based on 5,424,577, 81,332,825, 14,011,558 and 30,355,837 outstanding shares of beneficial interest, respectively 39,309 868,263 157,817 307,726 Fund shares of the Investor Shares (unlimited authorization-- no par value) based on 0, 2,557,430, 1,698,569 and 394,661 outstanding shares of beneficial interest, respectively .......... -- 27,630 17,827 4,013 Fund shares of the Flex Shares (unlimited authorization-- no par value) based on 6,210,114, 3,454,872, 2,349,965 and 3,106,567 outstanding shares of beneficial interest, respectively .......... 48,204 36,715 26,932 31,312 Undistributed net investment income (distributions in excess of net investment income) ............... 29 (3,706) -- (52) Accumulated net realized gain (loss) on investments ................ (900) (50,053) 8,587 (13,173) Net unrealized appreciation (depreciation) on investments .......... (9,347) 27,973 2,730 5,063 ------- -------- -------- -------- Total Net Assets ................................................... $77,295 $906,822 $213,893 $334,889 ======= ======== ======== ======== Net Asset Value, Offering and Redemption Price Per Share-- Trust Shares ........................................... $6.64 $10.38 $11.84 $ 9.89 ===== ====== ====== ====== Net Asset Value and Redemption Price Per Share-- Investor Shares ........................................ $ -- $10.38 $11.85 $ 9.91 ===== ====== ====== ====== Maximum Offering Price Per Share -- Investor Shares ($10.38/96.25%, $11.85/96.25%,$9.91//98.00%, respectively) ......... $ -- $10.78 $12.31 $10.11 ===== ====== ====== ====== Net Asset Value, Offering and Redemption Price Per Share-- Flex Shares (1) ........................................ $6.64 $10.39 $11.84 $ 9.91 ===== ====== ====== ====== (1) The Flex Shares have a contingent deferred sales charge. For a description of a possible sales charge, see note 2 in the Notes to the Financial Statements.
Amounts designated as "--" are either $0 or have been rounded to $0. THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS. 41 STATEMENTS OF OPERATIONS (000) - -------------------------------------------------------------------------------- STI CLASSIC FIXED INCOME FUNDS FOR THE SIX MONTH PERIOD ENDED NOVEMBER 30, 2002
INVESTMENT FLORIDA GEORGIA HIGH INVESTMENT GRADE TAX-EXEMPT TAX-EXEMPT INCOME GRADE BOND TAX-EXEMPT BOND FUND BOND FUND FUND FUND BOND FUND --------- --------- ---- ---- ---------- Income: Interest Income .................................... $3,465 $2,435 $3,819 $21,999 $ 3,532 Income from Securities Lending ..................... -- -- 6 48 -- Less: Foreign Taxes Withheld ....................... -- -- -- -- -- ------ ------ ------- ------- ------- Total Income ....................................... 3,465 2,435 3,825 22,047 3,532 ------ ------ ------- ------- ------- Expenses: Investment Advisory Fee ............................ 522 371 295 3,449 759 Administrator Fee .................................. 55 39 25 321 71 Distribution Fees-- Investor Shares ................ 5 2 -- 51 43 Distribution Fees-- Flex Shares .................... 144 74 203 182 135 Transfer Agency Fee-- Trust Shares ................. 8 8 8 11 8 Transfer Agency Fee-- Investor Shares .............. 7 7 -- 16 10 Transfer Agency Fee-- Flex Shares .................. 9 8 24 25 11 Transfer Agency Out of Pocket Expenses and Shareholder Servicing Fees ................... 4 3 2 25 6 Printing Fees ...................................... 2 2 1 14 3 Custody Fees ....................................... 2 1 1 9 2 Professional Fees .................................. 3 2 1 17 4 Trustee Fees ....................................... 1 1 1 5 1 Registration Fees .................................. 3 2 -- 15 3 Insurance and Other Expenses ....................... 2 1 1 6 1 ------ ------ ------- ------- ------- Total Expenses ..................................... 767 521 562 4,146 1,057 ------ ------ ------- ------- ------- Less: Investment Advisory Fees Waived .................. (36) (26) (55) (98) (33) Distribution Fees Waived/ Reimbursed-- Investor Shares ..................... (5) (6) -- (18) (11) Distribution Fees Waived-- Flex Shares ........... (48) (28) (92) (42) (24) ------ ------ ------- ------- ------- Net Expenses .......................................... 678 461 415 3,988 989 ------ ------ ------- ------- ------- Net Investment Income ................................. 2,787 1,974 3,410 18,059 2,543 ------ ------ ------- ------- ------- Net Realized and Unrealized Gain (Loss) on Investments: Net Realized Gain (Loss) on Securities Sold ........ 656 271 443 (613) 5,289 Net Realized Loss on Forward Foreign Currencies and Foreign Currency Translations ................. -- -- -- -- -- Net Change in Unrealized Appreciation on Forward Foreign Currency Contracts, Foreign Currencies and Translation of Other Assets and Liabilities Denominated in Foreign Currencies ............................... -- -- -- -- -- Net Change in Unrealized Appreciation (Depreciation) on Investments ..................... 1,677 854 (7,327) 16,607 (1,070) ------ ------ ------- ------- ------- Total Net Realized and Unrealized Gain (Loss) on Investments ................................... 2,333 1,125 (6,884) 15,994 4,219 ------ ------ ------- ------- ------- Net Increase (Decrease) in Net Assets from Operations ................................ $5,120 $3,099 $(3,474) $34,053 $ 6,762 ====== ====== ======= ======= ======= Amounts designated as "--" are either $0 or have been rounded to $0.
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS. 42
LIMITED TERM FEDERAL SHORT-TERM MORTGAGE MARYLAND U.S. TREASURY SECURITIES MUNICIPAL SHORT-TERM SECURITIES FUND BOND FUND BOND FUND FUND ------ ----------- ---------- ------ Income: Interest Income .................................... $4,217 $ 1,323 $ 7,336 $3,403 Income from Securities Lending ..................... 18 -- 35 -- Less: Foreign Taxes Withheld ....................... -- -- -- -- ------ ------- ------- ------ Total Income ....................................... 4,235 1,323 7,371 3,403 ------ ------- ------- ------ Expenses: Investment Advisory Fee ............................ 799 208 1,098 695 Administrator Fee .................................. 85 22 116 74 Distribution Fees-- Investor Shares ................ 4 -- 6 7 Distribution Fees-- Flex Shares .................... 239 127 144 461 Transfer Agency Fee-- Trust Shares ................. 8 8 9 8 Transfer Agency Fee-- Investor Shares .............. 7 -- 7 7 Transfer Agency Fee-- Flex Shares .................. 14 10 14 22 Transfer Agency Out of Pocket Expenses and Shareholder Servicing Fees ................... 6 2 9 6 Printing Fees ...................................... 3 1 5 3 Custody Fees ....................................... 3 1 3 2 Professional Fees .................................. 5 1 6 4 Trustee Fees ....................................... 1 -- 2 1 Registration Fees .................................. 4 1 5 3 Insurance and Other Expenses ....................... 6 -- 3 1 ------ ------- ------- ------ Total Expenses ..................................... 1,184 381 1,427 1,294 ------ ------- ------- ------ Less: Investment Advisory Fees Waived .................. (61) (26) (80) (64) Distribution Fees Waived/ Reimbursed-- Investor Shares ..................... (6) -- (7) (7) Distribution Fees Waived-- Flex Shares ........... (104) (12) (76) (283) ------ ------- ------- ------ Net Expenses .......................................... 1,013 343 1,264 940 ------ ------- ------- ------ Net Investment Income ................................. 3,222 980 6,107 2,463 ------ ------- ------- ------ Net Realized and Unrealized Gain (Loss) on Investments: Net Realized Gain (Loss) on Securities Sold ........ 2,089 243 (8,039) 1,158 Net Realized Loss on Forward Foreign Currencies and Foreign Currency Translations ................. -- -- -- -- Net Change in Unrealized Appreciation on Forward Foreign Currency Contracts, Foreign Currencies and Translation of Other Assets and Liabilities Denominated in Foreign Currencies ............................... -- -- -- -- Net Change in Unrealized Appreciation (Depreciation) on Investments ..................... 1,884 448 3,913 1,167 ------ ------- ------- ------ Total Net Realized and Unrealized Gain (Loss) on Investments ................................... 3,973 691 (4,126) 2,325 ------ ------- ------- ------ Net Increase (Decrease) in Net Assets from Operations ................................ $7,195 $ 1,671 $ 1,981 $4,788 ====== ======= ======= ======
VIRGINIA STRATEGIC U.S. INTERMEDIATE VIRGINIA INCOME GOVERNMENT MUNICIPAL MUNICIPAL FUND SECURITIES FUND BOND FUND BOND FUND ------ --------------- --------- --------- Income: Interest Income .................................... $3,594 $ 6,329 $4,434 $1,616 Income from Securities Lending ..................... -- -- -- -- Less: Foreign Taxes Withheld ....................... (10) -- -- -- ------ ------- ------- ------ Total Income ....................................... 3,584 6,329 4,434 1,616 ------ ------- ------- ------ Expenses: Investment Advisory Fee ............................ 404 903 674 236 Administrator Fee .................................. 33 84 71 25 Distribution Fees-- Investor Shares ................ -- 13 5 -- Distribution Fees-- Flex Shares .................... 233 182 -- 73 Transfer Agency Fee-- Trust Shares ................. 8 9 8 8 Transfer Agency Fee-- Investor Shares .............. -- 7 7 -- Transfer Agency Fee-- Flex Shares .................. 15 18 -- 8 Transfer Agency Out of Pocket Expenses and Shareholder Servicing Fees ................... 3 7 6 2 Printing Fees ...................................... 1 3 3 1 Custody Fees ....................................... 18 2 2 1 Professional Fees .................................. 2 4 4 1 Trustee Fees ....................................... -- 1 1 -- Registration Fees .................................. 2 4 3 1 Insurance and Other Expenses ....................... 2 2 1 1 ------ ------- ------- ------ Total Expenses ..................................... 721 1,239 785 357 ------ ------- ------- ------ Less: Investment Advisory Fees Waived .................. (48) (39) -- -- Distribution Fees Waived/ Reimbursed-- Investor Shares ..................... -- (6) (11) -- Distribution Fees Waived-- Flex Shares ........... (122) (30) -- (10) ------ ------- ------- ------ Net Expenses .......................................... 551 1,164 774 347 ------ ------- ------- ------ Net Investment Income ................................. 3,033 5,165 3,660 1,269 ------ ------- ------- ------ Net Realized and Unrealized Gain (Loss) on Investments: Net Realized Gain (Loss) on Securities Sold ........ 929 2,387 953 266 Net Realized Loss on Forward Foreign Currencies and Foreign Currency Translations ................. (1,403) -- -- -- Net Change in Unrealized Appreciation on Forward Foreign Currency Contracts, Foreign Currencies and Translation of Other Assets and Liabilities Denominated in Foreign Currencies ............................... 704 -- -- -- Net Change in Unrealized Appreciation (Depreciation) on Investments ..................... (2,345) 2,748 342 747 ------ ------- ------- ------ Total Net Realized and Unrealized Gain (Loss) on Investments ................................... (2,115) 5,135 1,295 1,013 ------ ------- ------- ------ Net Increase (Decrease) in Net Assets from Operations ................................ $ 918 $10,300 $4,955 $2,282 ====== ======= ======= ======
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS. 43 STATEMENTS OF CHANGES IN NET ASSETS (000) - -------------------------------------------------------------------------------- STI CLASSIC FIXED INCOME FUNDS FOR THE PERIOD ENDED NOVEMBER 30, 2002 (UNAUDITED) AND THE YEAR ENDED MAY 31, 2002
FLORIDA TAX-EXEMPT GEORGIA TAX-EXEMPT BOND FUND BOND FUND HIGH INCOME 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 -------- --------- -------- --------- -------- --------- Operations: Net Investment Income ................................ $ 2,787 $ 4,830 $ 1,974 $ 4,060 $ 3,410 $ 2,785 Net Realized Gain (Loss) on Securities Sold .......... 656 1,091 271 324 443 (552) Net Change in Unrealized Appreciation (Depreciation) on Investments ..................................... 1,677 1,774 854 1,585 (7,327) (1,804) -------- -------- -------- -------- ------- ------- Increase (Decrease) in Net Assets from Operations .. 5,120 7,695 3,099 5,969 (3,474) 429 -------- -------- -------- -------- ------- ------- Distributions to Shareholders: Net Investment Income: Trust Shares ....................................... (2,282) (4,210) (1,719) (3,472) (1,580) (467) Investor Shares .................................... (90) (100) (44) (106) -- -- Flex Shares ........................................ (414) (519) (211) (482) (1,802) (2,318) Realized capital gains: Trust Shares ....................................... -- (673) -- -- -- -- Investor Shares .................................... -- (17) -- -- -- -- Flex Shares ........................................ -- (107) -- -- -- -- -------- -------- -------- -------- ------- ------- Total Distributions .................................. (2,786) (5,626) (1,974) (4,060) (3,382) (2,785) -------- -------- -------- -------- ------- ------- Capital Transactions (1): Trust Shares: Proceeds from Shares Issued ........................ 15,327 31,013 15,129 22,751 11,520 29,701 Reinvestment of Cash Distributions ................. 283 994 294 726 799 138 Cost of Shares Redeemed ............................ (10,699) (20,777) (15,397) (19,584) (2,207) (642) -------- -------- -------- -------- ------- ------- Increase (Decrease) in Net Assets From Trust Share Transactions ................................. 4,911 11,230 26 3,893 10,112 29,197 -------- -------- -------- -------- ------- ------- Investor Shares: Proceeds from Shares Issued ........................ 4,296 225 305 273 -- -- Reinvestment of Cash Distributions ................. 72 82 22 60 -- -- Cost of Shares Redeemed ............................ (1,225) (158) (630) (442) -- -- -------- -------- -------- -------- ------- ------- Increase (Decrease) in Net Assets From Investor Share Transactions ................................. 3,143 149 (303) (109) -- -- -------- -------- -------- -------- ------- ------- Flex Shares: Proceeds from Shares Issued ........................ 13,118 11,313 1,330 4,793 8,430 34,517 Reinvestment of Cash Distributions ................. 330 472 174 394 1,146 1,447 Cost of Shares Redeemed ............................ (3,090) (2,936) (966) (5,271) (11,168) (7,049) -------- -------- -------- -------- ------- ------- Increase (Decrease) in Net Assets From Flex Share Transactions ................................. 10,358 8,849 538 (84) (1,592) 28,915 -------- -------- -------- -------- ------- ------- Increase (Decrease) in Net Assets From Share Transactions ................................. 18,412 20,228 261 3,700 8,520 58,112 -------- -------- -------- -------- ------- ------- Total Increase (Decrease) in Net Assets .......... 20,746 22,297 1,386 5,609 1,664 55,756 -------- -------- -------- -------- ------- ------- Net Assets: Beginning of Period .................................. 145,717 123,420 108,469 102,860 75,631 19,875 -------- -------- -------- -------- ------- ------- End of Period ........................................ $166,463 $145,717 $109,855 $108,469 $77,295 $75,631 ======== ======== ======== ======== ======= ======= * Trust Shares were offered beginning on October 3, 2001. (1) See Note 9 in Notes to Financial Statements for additional information. Amounts designated as "--" are either $0 or have been rounded to $0.
44
INVESTMENT GRADE INVESTMENT GRADE TAX- BOND FUND EXEMPT BOND FUND ----------------------- -------------------------- 06/01/02- 06/01/01- 06/01/02- 06/01/01- 11/30/02 05/31/02 11/30/02 05/31/02 --------- --------- ---------- --------- Operations: Net Investment Income ................................ $ 18,059 $ 44,545 $ 2,543 $ 5,034 Net Realized Gain (Loss) on Securities Sold .......... (613) 1,297 5,289 5,568 Net Change in Unrealized Appreciation (Depreciation) on Investments ..................................... 16,607 564 (1,070) 1,705 --------- --------- -------- -------- Increase (Decrease) in Net Assets from Operations .. 34,053 46,406 6,762 12,307 --------- --------- -------- -------- Distributions to Shareholders: Net Investment Income: Trust Shares ....................................... (20,558) (43,708) (2,087) (4,081) Investor Shares .................................... (511) (995) (222) (492) Flex Shares ........................................ (696) (1,340) (234) (461) Realized capital gains: Trust Shares ....................................... -- -- -- (3,160) Investor Shares .................................... -- -- -- (448) Flex Shares ........................................ -- -- -- (545) --------- --------- -------- -------- Total Distributions .................................. (21,765) (46,043) (2,543) (9,187) --------- --------- -------- -------- Capital Transactions (1): Trust Shares: Proceeds from Shares Issued ........................ 116,215 224,284 29,786 54,898 Reinvestment of Cash Distributions ................. 8,187 17,242 345 2,870 Cost of Shares Redeemed ............................ (177,981) (215,665) (16,561) (45,160) --------- --------- -------- -------- Increase (Decrease) in Net Assets From Trust Share Transactions ................................. (53,579) 25,861 13,570 12,608 --------- --------- -------- -------- Investor Shares: Proceeds from Shares Issued ........................ 10,256 47,871 1,610 3,445 Reinvestment of Cash Distributions ................. 466 866 174 765 Cost of Shares Redeemed ............................ (5,303) (49,146) (2,541) (2,704) --------- --------- -------- -------- Increase (Decrease) in Net Assets From Investor Share Transactions ................................. 5,419 (409) (757) 1,506 --------- --------- -------- -------- Flex Shares: Proceeds from Shares Issued ........................ 10,024 19,999 6,756 9,733 Reinvestment of Cash Distributions ................. 603 1,170 192 876 Cost of Shares Redeemed ............................ (11,429) (10,596) (4,310) (6,370) --------- --------- -------- -------- Increase (Decrease) in Net Assets From Flex Share Transactions ................................. (802) 10,573 2,638 4,239 --------- --------- -------- -------- Increase (Decrease) in Net Assets From Share Transactions ................................. (48,962) 36,025 15,451 18,353 --------- --------- -------- -------- Total Increase (Decrease) in Net Assets .......... (36,674) 36,388 19,670 21,473 --------- --------- -------- -------- Net Assets: Beginning of Period .................................. 943,496 907,108 194,223 172,750 --------- --------- -------- -------- End of Period ........................................ $ 906,822 $ 943,496 $213,893 $194,223 ========= ========= ======== ======== * Trust Shares were offered beginning on October 3, 2001. (1) See Note 9 in Notes to Financial Statements for additional information. Amounts designated as "--" are either $0 or have been rounded to $0.
LIMITED-TERM FEDERAL MARYLAND MUNICIPAL MORTGAGE SECURITIES FUND BOND FUND -------------------------- ----------------------- 06/01/02- 06/01/01- 06/01/02- 06/01/01- 11/30/02 05/31/02 11/30/02 05/31/02 ---------- ---------- --------- --------- Operations: Net Investment Income ................................ $ 3,222 $ 4,910 $ 980 $ 1,629 Net Realized Gain (Loss) on Securities Sold .......... 2,089 3,042 243 426 Net Change in Unrealized Appreciation (Depreciation) on Investments ..................................... 1,884 1,531 448 439 -------- -------- -------- -------- Increase (Decrease) in Net Assets from Operations .. 7,195 9,483 1,671 2,494 -------- -------- -------- -------- Distributions to Shareholders: Net Investment Income: Trust Shares ....................................... (4,179) (5,246) (664) (1,105) Investor Shares .................................... (77) (47) -- -- Flex Shares ........................................ (847) (253) (315) (522) Realized capital gains: Trust Shares ....................................... -- (192) -- -- Investor Shares .................................... -- (2) -- -- Flex Shares ........................................ -- (9) -- -- -------- -------- -------- -------- Total Distributions .................................. (5,103) (5,749) (979) (1,627) -------- -------- -------- -------- Capital Transactions (1): Trust Shares: Proceeds from Shares Issued ........................ 76,859 94,324 16,015 12,044 Reinvestment of Cash Distributions ................. 1,917 2,831 145 206 Cost of Shares Redeemed ............................ (29,619) (43,762) (12,792) (5,662) -------- -------- -------- -------- Increase (Decrease) in Net Assets From Trust Share Transactions ................................. 49,157 53,393 3,368 6,588 -------- -------- -------- -------- Investor Shares: Proceeds from Shares Issued ........................ 6,141 1,158 -- -- Reinvestment of Cash Distributions ................. 67 40 -- -- Cost of Shares Redeemed ............................ (677) (500) -- -- -------- -------- -------- -------- Increase (Decrease) in Net Assets From Investor Share Transactions ................................. 5,531 698 -- -- -------- -------- -------- -------- Flex Shares: Proceeds from Shares Issued ........................ 71,593 13,389 5,083 13,615 Reinvestment of Cash Distributions ................. 706 222 269 368 Cost of Shares Redeemed ............................ (3,080) (1,279) (2,547) (3,171) -------- -------- -------- -------- Increase (Decrease) in Net Assets From Flex Share Transactions ................................. 69,219 12,332 2,805 10,812 -------- -------- -------- -------- Increase (Decrease) in Net Assets From Share Transactions ................................. 123,907 66,423 6,173 17,400 -------- -------- -------- -------- Total Increase (Decrease) in Net Assets .......... 125,999 70,157 6,865 18,267 -------- -------- -------- -------- Net Assets: Beginning of Period .................................. 182,132 111,975 56,883 38,616 -------- -------- -------- -------- End of Period ........................................ $308,131 $182,132 $63,748 $ 56,883 ======== ======== ======== ======== * Trust Shares were offered beginning on October 3, 2001. (1) See Note 9 in Notes to Financial Statements for additional information. Amounts designated as "--" are either $0 or have been rounded to $0.
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS 45 STATEMENTS OF CHANGES IN NET ASSETS (000) - -------------------------------------------------------------------------------- STI CLASSIC FIXED INCOME FUNDS FOR THE PERIOD ENDED NOVEMBER 30, 2002 (UNAUDITED) AND THE YEAR ENDED MAY 31, 2002
SHORT-TERM SHORT-TERM U.S. TREASURY BOND FUND SECURITIES FUND --------------------------- ---------------------------- 06/01/02- 06/01/01- 06/01/02- 06/01/01- 11/30/02 05/31/02 11/30/02 05/31/02 --------------------------- ---------------------------- Operations: Net Investment Income ........................................ $ 6,107 $ 12,919 $ 2,463 $ 5,017 Net Realized Gain (Loss) on Securities Sold .................. (8,039) (458) 1,158 1,115 Net Realized Loss on Foreign Currency Transactions and Forward Foreign Currency Contracts ........................... -- -- -- -- Net Change in Unrealized Appreciation (Depreciation) on Forward Foreign Currency Contracts, Foreign Currencies and Translation of Other Assets and Liabilities Denominated in Foreign Currencies -- -- -- -- Net Change in Unrealized Appreciation (Depreciation) on Investments 3,913 (1,893) 1,167 608 -------- -------- -------- -------- Increase in Net Assets from Operations ..................... 1,981 10,568 4,788 6,211 -------- -------- -------- -------- Distributions to Shareholders: Net Investment Income: Trust Shares ............................................... (5,624) (12,038) (1,424) (3,562) Investor Shares ............................................ (85) (210) (88) (91) Flex Shares ................................................ (450) (657) (951) (1,364) Realized Capital Gains: Trust Shares ............................................... -- -- -- (278) Investor Shares ............................................ -- -- -- (7) Flex Shares ................................................ -- -- -- (119) -------- -------- -------- -------- Total Distributions .......................................... (6,159) (12,905) (2,463) (5,421) -------- -------- -------- -------- Capital Transactions (1): Trust Shares: Proceeds from Shares Issued ................................ 51,063 184,897 23,540 47,056 Reinvestment of Cash Distributions ......................... 1,642 3,951 229 709 Cost of Shares Repurchased ................................. (54,624) (96,279) (11,938) (29,504) -------- -------- -------- -------- Increase (Decrease) in Net Assets From Trust Share Transactions ............................................... (1,919) 92,569 11,831 18,261 -------- -------- -------- -------- Investor Shares: Proceeds from Shares Issued ................................ 1,647 6,458 6,594 10,025 Reinvestment of Cash Distributions ......................... 65 197 73 89 Cost of Shares Repurchased ................................. (3,498) (5,040) (1,021) (7,571) -------- -------- -------- -------- Increase (Decrease) in Net Assets From Investor Share Transactions ......................................... (1,786) 1,615 5,646 2,543 -------- -------- -------- -------- Flex Shares: Proceeds from Shares Issued ................................ 10,101 20,914 52,600 69,886 Reinvestment of Cash Distributions ......................... 346 495 830 1,294 Cost of Shares Repurchased ................................. (5,718) (5,529) (13,864) (28,588) -------- -------- -------- -------- Increase in Net Assets From Flex Share Transactions ........ 4,729 15,880 39,566 42,592 -------- -------- -------- -------- Increase (Decrease) in Net Assets From Share Transactions .. 1,024 110,064 57,043 4,231 -------- -------- -------- -------- Total Increase (Decrease) in Net Assets .................. (3,154) 107,727 59,368 64,186 -------- -------- -------- -------- Net Assets: Beginning of Period .......................................... 338,043 230,316 182,624 118,438 -------- -------- -------- -------- End of Period ................................................ $334,889 $338,043 $241,992 $182,624 ======== ======== ======== ======== *Commenced operations on November 30, 2001. (1) See Note 9 in Notes to Financial Statements for additional information. Amounts designated as "--" are either $0 or have been rounded to $0.
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS 46
U.S. GOVERNMENT STRATEGIC INCOME FUND SECURITIES FUND ----------------------------- -------------------------- 06/01/02- 11/30/01*- 06/01/02- 06/01/01- 11/30/02 05/31/02 11/30/02 05/31/02 ----------------------------- ------------------------- Operations: Net Investment Income ........................................ $ 3,033 $ 1,326 $ 5,165 $ 9,915 Net Realized Gain (Loss) on Securities Sold .................. 929 (97) 2,387 2,303 Net Realized Loss on Foreign Currency Transactions and Forward Foreign Currency Contracts ........................... (1,403) (10) -- -- Net Change in Unrealized Appreciation (Depreciation) on Forward Foreign Currency Contracts, Foreign Currencies and Translation of Other Assets and Liabilities Denominated in Foreign Currencies 704 (528) -- -- Net Change in Unrealized Appreciation (Depreciation) on Investments ................................................ (2,345) 143 2,748 2,251 -------- -------- -------- -------- Increase in Net Assets from Operations ..................... 918 834 10,300 14,469 -------- -------- -------- -------- Distributions to Shareholders: Net Investment Income: Trust Shares ............................................... (1,620) (744) (4,632) (8,292) Investor Shares ............................................ -- -- (148) (354) Flex Shares ................................................ (1,437) (588) (668) (1,318) Realized Capital Gains: Trust Shares ............................................... -- -- -- (2,756) Investor Shares ............................................ -- -- -- (121) Flex Shares ................................................ -- -- -- (604) -------- -------- -------- -------- Total Distributions .......................................... (3,057) (1,332) (5,448) (13,445) -------- -------- -------- -------- Capital Transactions (1): Trust Shares: Proceeds from Shares Issued ................................ 13,966 46,245 73,628 73,470 Reinvestment of Cash Distributions ......................... 293 146 1,473 4,296 Cost of Shares Repurchased ................................. (4,373) (2,433) (29,026) (58,868) -------- -------- -------- -------- Increase (Decrease) in Net Assets From Trust Share Transactions ............................................... 9,886 43,958 46,075 18,898 -------- -------- -------- -------- Investor Shares: Proceeds from Shares Issued ................................ -- -- 8,290 2,911 Reinvestment of Cash Distributions ......................... -- -- 135 460 Cost of Shares Repurchased ................................. -- -- (12,520) (1,564) -------- -------- -------- -------- Increase (Decrease) in Net Assets From Investor Share Transactions ......................................... -- -- (4,095) 1,807 -------- -------- -------- -------- Flex Shares: Proceeds from Shares Issued ................................ 20,344 41,311 11,375 24,017 Reinvestment of Cash Distributions ......................... 1,051 442 572 1,689 Cost of Shares Repurchased ................................. (7,872) (2,006) (7,500) (15,321) -------- -------- -------- -------- Increase in Net Assets From Flex Share Transactions ........ 13,523 39,747 4,447 10,385 -------- -------- -------- -------- Increase (Decrease) in Net Assets From Share Transactions .. 23,409 83,705 46,427 31,090 -------- -------- -------- -------- Total Increase (Decrease) in Net Assets .................. 21,270 83,207 51,279 32,114 -------- -------- -------- -------- Net Assets: Beginning of Period .......................................... 83,207 -- 209,014 176,900 -------- -------- -------- -------- End of Period ................................................ $104,477 $ 83,207 $260,293 $209,014 ======== ======== ======== ========
VIRGINIA INTERMEDIATE MUNICIPAL BOND FUND VIRGINIA MUNICIPAL BOND FUND -------------------------- ---------------------------- 06/01/02- 06/01/01- 06/01/02- 06/01/01- 11/30/02 05/31/02 11/30/02 05/31/02 -------------------------- ---------------------------- Operations: Net Investment Income ........................................ $ 3,660 $ 7,696 $ 1,269 $ 2,581 Net Realized Gain (Loss) on Securities Sold .................. 953 2,170 266 624 Net Realized Loss on Foreign Currency Transactions and Forward Foreign Currency Contracts ........................... -- -- -- -- Net Change in Unrealized Appreciation (Depreciation) on Forward Foreign Currency Contracts, Foreign Currencies and Translation of Other Assets and Liabilities Denominated in Foreign Currencies -- -- -- -- Net Change in Unrealized Appreciation (Depreciation) on Investments ................................................ 342 941 747 608 -------- -------- ------- -------- Increase in Net Assets from Operations ..................... 4,955 10,807 2,282 3,813 -------- -------- ------- -------- Distributions to Shareholders: Net Investment Income: Trust Shares ............................................... (3,536) (7,547) (1,072) (2,247) Investor Shares ............................................ (129) (245) -- -- Flex Shares ................................................ -- -- (199) (339) Realized Capital Gains: Trust Shares ............................................... -- -- -- -- Investor Shares ............................................ -- -- -- -- Flex Shares ................................................ -- -- -- -- -------- -------- ------- -------- Total Distributions .......................................... (3,665) (7,792) (1,271) (2,586) -------- -------- ------- -------- Capital Transactions (1): Trust Shares: Proceeds from Shares Issued ................................ 15,067 16,933 5,467 9,887 Reinvestment of Cash Distributions ......................... 144 108 72 145 Cost of Shares Repurchased ................................. (9,005) (23,387) (7,539) (11,071) -------- -------- ------- -------- Increase (Decrease) in Net Assets From Trust Share Transactions ............................................... 6,206 (6,346) (2,000) (1,039) -------- -------- ------- -------- Investor Shares: Proceeds from Shares Issued ................................ 508 2,349 -- -- Reinvestment of Cash Distributions ......................... 94 183 -- -- Cost of Shares Repurchased ................................. (545) (1,584) -- -- -------- -------- ------- -------- Increase (Decrease) in Net Assets From Investor Share Transactions ......................................... 57 948 -- -- -------- -------- ------- -------- Flex Shares: Proceeds from Shares Issued ................................ -- -- 2,976 7,568 Reinvestment of Cash Distributions ......................... -- -- 134 230 Cost of Shares Repurchased ................................. -- -- (1,710) (2,528) -------- -------- ------- -------- Increase in Net Assets From Flex Share Transactions ........ -- -- 1,400 5,270 -------- -------- ------- -------- Increase (Decrease) in Net Assets From Share Transactions .. 6,263 (5,398) (600) 4,231 -------- -------- ------- -------- Total Increase (Decrease) in Net Assets .................. 7,553 (2,383) 411 5,458 -------- -------- ------- -------- Net Assets: Beginning of Period .......................................... 198,663 201,046 70,014 64,556 -------- -------- ------- -------- End of Period ................................................ $206,216 $198,663 $70,425 $ 70,014 ======== ======== ======= ========
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS 47 FINANCIAL HIGHLIGHTS - -------------------------------------------------------------------------------- STI CLASSIC FIXED INCOME FUNDS FOR THE PERIOD ENDED NOVEMBER 30, 2002 (UNAUDITED) AND THE YEARS ENDED MAY 31, (UNLESS OTHERWISE INDICATED) FOR A SHARE OUTSTANDING THROUGHOUT THE PERIODS
NET ASSET NET REALIZED AND DISTRIBUTIONS DISTRIBUTIONS VALUE, NET UNREALIZED GAINS FROM NET DISTRIBUTIONS FROM NET ASSET BEGINNING INVESTMENT (LOSSES) INVESTMENT FROM REALIZED TAX RETURN VALUE, END OF PERIOD INCOME ON INVESTMENTS INCOME CAPITAL GAINS OF CAPITAL OF PERIOD -------- ------- --------------- -------- -------------- ----------- ---------- FLORIDA TAX-EXEMPT BOND FUND Trust Shares 2002* $10.95 $0.20 $0.19 $(0.20) -- -- $11.14 2002 10.79 0.40 0.22 (0.40) $(0.06) -- 10.95 2001 10.06 0.44 0.73 (0.44) -- -- 10.79 2000 10.59 0.44 (0.49) (0.44) (0.04) -- 10.06 1999 10.72 0.42 (0.02) (0.42) (0.11) -- 10.59 1998 10.28 0.44 0.45 (0.44) (0.01) -- 10.72 Investor Shares 2002* $10.95 $0.19 $0.19 $(0.19) -- -- $11.14 2002 10.79 0.38 0.22 (0.38) $(0.06) -- 10.95 2001 10.07 0.42 0.72 (0.42) -- -- 10.79 2000 10.60 0.42 (0.49) (0.42) (0.04) -- 10.07 1999 10.72 0.40 (0.01) (0.40) (0.11) -- 10.60 1998 10.29 0.42 0.44 (0.42) (0.01) -- 10.72 Flex Shares 2002* $10.97 $0.16 $0.19 $(0.16) -- -- $11.16 2002 10.81 0.32 0.22 (0.32) $(0.06) -- 10.97 2001 10.09 0.37 0.72 (0.37) -- -- 10.81 2000 10.62 0.36 (0.49) (0.36) (0.04) -- 10.09 1999 10.74 0.35 (0.01) (0.35) (0.11) -- 10.62 1998 10.30 0.37 0.45 (0.37) (0.01) -- 10.74 GEORGIA TAX-EXEMPT BOND FUND Trust Shares 2002* $10.29 $0.19 $0.10 $(0.19) -- -- $10.39 2002 10.10 0.39 0.19 (0.39) -- -- 10.29 2001 9.50 0.40 0.60 (0.40) -- -- 10.10 2000 10.03 0.40 (0.49) (0.40) $(0.04) -- 9.50 1999 10.11 0.39 (0.06) (0.39) (0.02) -- 10.03 1998 9.73 0.41 0.39 (0.41) (0.01) -- 10.11 Investor Shares 2002* $10.31 $0.18 $0.09 $(0.18) -- -- $10.40 2002 10.12 0.37 0.19 (0.37) -- -- 10.31 2001 9.51 0.38 0.61 (0.38) -- -- 10.12 2000 10.05 0.38 (0.50) (0.38) $(0.04) -- 9.51 1999 10.13 0.37 (0.06) (0.37) (0.02) -- 10.05 1998 9.74 0.39 0.40 (0.39) (0.01) -- 10.13 Flex Shares 2002* $10.30 $0.15 $0.10 $(0.15) -- -- $10.40 2002 10.11 0.32 0.19 (0.32) -- -- 10.30 2001 9.51 0.33 0.60 (0.33) -- -- 10.11 2000 10.04 0.33 (0.49) (0.33) $(0.04) -- 9.51 1999 10.12 0.32 (0.06) (0.32) (0.02) -- 10.04 1998 9.73 0.34 0.40 (0.34) (0.01) -- 10.12 HIGH INCOME FUND (A) Trust Shares 2002* $ 7.25 $0.31 $(0.61) $(0.31) -- -- $6.64 2002(1) 7.37 0.39 (0.12) (0.39) -- -- 7.25 Flex Shares 2002* $ 7.25 $0.29 $(0.61) $(0.29) -- -- $6.64 2002 7.69 0.55 (0.44) (0.55) -- -- 7.25 2001 7.88 0.55 (0.19) (0.55) -- -- 7.69 2000(2) 7.98 0.09 (0.10) (0.09) -- -- 7.88 For the years ended March 31: 2000 9.77 0.87 (1.85) (0.81) -- -- 7.98 1999 9.99 0.51 0.04 (0.57) $(0.15) $(0.05) 9.77 1998 9.73 0.34 0.44 (0.52) -- -- 9.99 * For the six month period ended November 30, 2002. All ratios for the period have been annualized. + Returns are for the period indicated and have not been annualized. Total return figures do not reflect applicable sales loads. Returns shown do not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares. (1)Trust shares were offered on October 3, 2001. All ratios for the period have been annualized. (2)For the two month period ended May 31, 2000. All ratios for the period have been annualized. (A)On March 28, 2000, the ESC Strategic Income Fund exchanged all of its assets and liabilities for shares of the High Income Fund. The ESC Strategic Income 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 March 28, 2000 have been carried forward in these financial highlights. Subsequent to the merger, the High Income Fund changed its fiscal year end to May 31. Amounts designated as "--" are either $0 or have been rounded to $0.
48
RATIO OF RATIO OF RATIO OF EXPENSES TO NET INVESTMENT RATIO OF NET INVESTMENT AVERAGE NET INCOME TO EXPENSES INCOME TO ASSETS AVERAGE NET NET ASSETS, TO AVERAGE (EXCLUDING ASSETS (EXCLUDING PORTFOLIO TOTAL END OF AVERAGE NET WAIVERS AND WAIVERS AND TURNOVER RETURN+ PERIOD (000) NET ASSETS ASSETS REIMBURSEMENTS) REIMBURSEMENTS) RATE -------- ------------- -------------- ------------- --------------- ---------------- ------------ FLORIDA TAX-EXEMPT BOND FUND Trust Shares 2002* 3.59% $127,843 0.71% 3.61% 0.75% 3.57% 21% 2002 5.88 120,885 0.71 3.65 0.76 3.60 91 2001 11.84 107,867 0.71 4.19 0.76 4.14 59 2000 (0.48) 93,040 0.67 4.25 0.78 4.14 88 1999 3.72 118,609 0.67 3.90 0.77 3.80 72 1998 8.77 93,939 0.66 4.16 0.80 4.02 69 Investor Shares 2002* 3.47% $ 6,074 0.92% 3.36% 1.16% 3.12% 21% 2002 5.66 2,935 0.92 3.44 1.37 2.99 91 2001 11.50 2,747 0.91 4.00 1.38 3.53 59 2000 (0.68) 2,875 0.87 4.05 1.36 3.56 88 1999 3.62 3,799 0.87 3.71 1.31 3.27 72 1998 8.46 3,381 0.86 3.98 1.34 3.50 69 Flex Shares 2002* 3.21% $ 32,546 1.42% 2.87% 1.80% 2.49% 21% 2002 5.15 21,897 1.42 2.93 1.84 2.51 91 2001 10.95 12,806 1.41 3.49 1.89 3.01 59 2000 (1.17) 9,791 1.37 3.54 1.89 3.02 88 1999 3.13 14,762 1.37 3.21 1.88 2.70 72 1998 8.04 8,160 1.36 3.45 2.01 2.80 69 GEORGIA TAX-EXEMPT BOND FUND Trust Shares 2002* 2.78% $ 92,348 0.71% 3.55% 0.76% 3.50% 11% 2002 5.81 91,356 0.71 3.79 0.76 3.74 23 2001 10.67 85,880 0.71 4.03 0.77 3.97 21 2000 (0.90) 81,160 0.67 4.13 0.77 4.03 19 1999 3.33 87,452 0.67 3.87 0.78 3.76 12 1998 8.37 62,363 0.66 4.09 0.81 3.94 7 Investor Shares 2002* 2.57% $ 2,566 0.92% 3.34% 1.43% 2.83% 11% 2002 5.58 2,844 0.92 3.58 1.36 3.14 23 2001 10.56 2,901 0.91 3.83 1.42 3.32 21 2000 (1.26) 2,458 0.87 3.93 1.40 3.40 19 1999 3.13 3,676 0.87 3.67 1.25 3.29 12 1998 8.26 3,975 0.86 3.89 1.30 3.45 7 Flex Shares 2002* 2.42% $ 14,941 1.42% 2.84% 1.84% 2.42% 11% 2002 5.07 14,269 1.42 3.08 1.84 2.66 23 2001 9.92 14,079 1.41 3.33 1.89 2.85 21 2000 (1.59) 8,827 1.37 3.43 1.95 2.85 19 1999 2.63 13,358 1.37 3.19 1.89 2.67 12 1998 7.74 8,264 1.36 3.39 2.02 2.73 7 HIGH INCOME FUND (A) Trust Shares 2002* (3.92)% $ 36,033 0.79% 9.62% 0.94% 9.47% 17% 2002(1) 3.70 28,767 0.82 8.27 0.97 8.12 59 Flex Shares 2002* (4.22)% $ 41,262 1.40% 8.96% 2.01% 8.35% 17% 2002 1.46 46,864 1.40 7.35 2.02 6.73 59 2001 4.74 19,875 1.40 6.88 2.13 6.15 10 2000(2) (0.13) 3,075 1.40 6.57 2.83 5.14 -- For the years ended March 31: 2000 (10.84) 2,032 1.73 8.94 2.95 7.72 24 1999 5.64 7,230 1.91 5.09 2.22 4.78 95 1998 8.18 24,413 1.87 5.27 1.87 5.27 130
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS 49 FINANCIAL HIGHLIGHTS - -------------------------------------------------------------------------------- STI CLASSIC FIXED INCOME FUNDS FOR THE PERIOD ENDED NOVEMBER 30, 2002 (UNAUDITED) AND THE YEARS ENDED MAY 31, (UNLESS OTHERWISE INDICATED) FOR A SHARE OUTSTANDING THROUGHOUT THE PERIODS
NET ASSET NET REALIZED AND DISTRIBUTIONS VALUE, NET UNREALIZED GAINS FROM NET DISTRIBUTIONS NET ASSET BEGINNING INVESTMENT (LOSSES) INVESTMENT FROM REALIZED VALUE ,END OF PERIOD INCOME ON INVESTMENTS INCOME CAPITAL GAINS OF PERIOD ----------- ----------- ------------------ ------------- -------------- ------------ INVESTMENT GRADE BOND FUND Trust Shares 2002* $10.24 $0.24 $0.14 $(0.24) -- $10.38 2002 10.23 0.51 0.01 (0.51) -- 10.24 2001 9.58 0.61 0.65 (0.61) -- 10.23 2000 10.36 0.61 (0.78) (0.61) -- 9.58 1999 10.65 0.56 (0.11) (0.56) $(0.18) 10.36 1998 10.16 0.60 0.49 (0.60) -- 10.65 Investor Shares 2002* $10.24 $0.22 $0.14 $(0.22) -- $10.38 2002 10.23 0.48 0.01 (0.48) -- 10.24 2001 9.58 0.57 0.65 (0.57) -- 10.23 2000 10.36 0.57 (0.78) (0.57) -- 9.58 1999 10.65 0.52 (0.11) (0.52) $(0.18) 10.36 1998 10.16 0.55 0.49 (0.55) -- 10.65 Flex Shares 2002* $10.25 $0.20 $0.14 $(0.20) -- $10.39 2002 10.24 0.42 0.01 (0.42) -- 10.25 2001 9.59 0.53 0.65 (0.53) -- 10.24 2000 10.37 0.52 (0.78) (0.52) -- 9.59 1999 10.66 0.47 (0.11) (0.47) $(0.18) 10.37 1998 10.17 0.51 0.49 (0.51) -- 10.66 INVESTMENT GRADE TAX-EXEMPT BOND FUND Trust Shares 2002* $11.57 $0.16 $0.27 $(0.16) -- $11.84 2002 11.38 0.34 0.46 (0.34) $(0.27) 11.57 2001 10.67 0.44 0.71 (0.44) -- 11.38 2000 11.10 0.43 (0.29) (0.43) (0.14) 10.67 1999 11.40 0.43 0.10 (0.43) (0.40) 11.10 1998 11.22 0.44 0.50 (0.44) (0.32) 11.40 Investor Shares 2002* $11.58 $0.13 $0.27 $(0.13) -- $11.85 2002 11.39 0.29 0.46 (0.29) $(0.27) 11.58 2001 10.68 0.40 0.71 (0.40) -- 11.39 2000 11.12 0.39 (0.30) (0.39) (0.14) 10.68 1999 11.41 0.38 0.11 (0.38) (0.40) 11.12 1998 11.24 0.39 0.49 (0.39) (0.32) 11.41 Flex Shares 2002* $11.57 $0.10 $0.27 $(0.10) -- $11.84 2002 11.38 0.24 0.46 (0.24) $(0.27) 11.57 2001 10.67 0.34 0.71 (0.34) -- 11.38 2000 11.10 0.34 (0.29) (0.34) (0.14) 10.67 1999 11.40 0.33 0.10 (0.33) (0.40) 11.10 1998 11.23 0.33 0.49 (0.33) (0.32) 11.40 LIMITED-TERM FEDERAL MORTGAGE SECURITIES FUND Trust Shares 2002* $10.31 $0.23 $0.11 $(0.23) -- $10.42 2002 10.01 0.43 0.32 (0.43) $(0.02) 10.31 2001 9.62 0.55 0.39 (0.55) -- 10.01 2000 9.94 0.55 (0.32) (0.55) -- 9.62 1999 10.12 0.54 (0.06) (0.54) (0.12) 9.94 1998 10.02 0.58 0.11 (0.58) (0.01) 10.12 Investor Shares 2002* $10.29 $0.21 $0.12 $(0.21) -- $10.41 2002 10.00 0.40 0.31 (0.40) $(0.02) 10.29 2001 9.60 0.53 0.40 (0.53) -- 10.00 2000 9.93 0.52 (0.33) (0.52) -- 9.60 1999 10.11 0.51 (0.06) (0.51) (0.12) 9.93 1998 10.00 0.56 0.12 (0.56) (0.01) 10.11 Flex Shares 2002* $10.31 $0.19 $0.12 $(0.19) -- $10.43 2002 10.02 0.37 0.31 (0.37) $(0.02) 10.31 2001 9.62 0.50 0.40 (0.50) -- 10.02 2000 9.94 0.49 (0.32) (0.49) -- 9.62 1999 10.12 0.48 (0.06) (0.48) (0.12) 9.94 1998 10.02 0.52 0.11 (0.52) (0.01) 10.12 * For the six month period ended November 30, 2002. All ratios for the period have been annualized. + Returns are for the period indicated and have not been annualized. Total return figures do not reflect applicable sales loads. Returns shown do not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares.
Amounts designated as "--" are either $0 or have been rounded to $0.
- ------------------------------------------------------------------------------------------------------------------------------- RATIO OF RATIO OF RATIO OF EXPENSES TO NET INVESTMENT RATIO OF NET INVESTMENT AVERAGE NET INCOME TO EXPENSES INCOME TO ASSETS AVERAGE NET NET ASSETS, TO AVERAGE (EXCLUDING ASSETS (EXCLUDING PORTFOLIO TOTAL END OF AVERAGE NET WAIVERS AND WAIVERS AND TURNOVER RETURN+ PERIOD (000) NET ASSETS ASSETS REIMBURSEMENTS) REIMBURSEMENTS) RATE -------- ------------- -------------- ------------- --------------- ---------------- ------------ INVESTMENT GRADE BOND FUND Trust Shares 2002* 3.79% $ 844,388 0.81% 3.92% 0.83% 3.90% 60% 2002 5.18 886,471 0.81 4.81 0.83 4.79 123 2001 13.55 860,073 0.81 6.17 0.84 6.14 131 2000 (1.76) 998,596 0.77 6.05 0.84 5.98 202 1999 4.25 1,149,068 0.77 5.25 0.85 5.17 221 1998 10.92 793,488 0.76 5.67 0.86 5.57 109 Investor Shares 2002* 3.58% $ 26,547 1.22% 3.37% 1.39% 3.20% 60% 2002 4.81 20,825 1.22 4.40 1.40 4.22 123 2001 13.09 21,244 1.21 5.77 1.42 5.56 131 2000 (2.17) 22,553 1.17 5.60 1.37 5.40 202 1999 3.86 34,913 1.17 4.87 1.36 4.68 221 1998 10.49 33,269 1.14 5.29 1.38 5.05 109 Flex Shares 2002* 3.32% $ 35,887 1.71% 3.01% 1.96% 2.76% 60% 2002 4.27 36,200 1.71 3.90 1.96 3.65 123 2001 12.54 25,791 1.70 5.24 1.99 4.95 131 2000 (2.63) 20,056 1.66 5.14 1.99 4.81 202 1999 3.35 26,020 1.66 4.40 2.00 4.06 221 1998 9.99 13,111 1.65 4.76 2.11 4.30 109 INVESTMENT GRADE TAX-EXEMPT BOND FUND Trust Shares 2002* 3.69% $ 165,941 0.81% 2.64% 0.84% 2.61% 161% 2002 7.15 149,200 0.81 2.93 0.84 2.90 311 2001 10.93 134,139 0.81 3.93 0.85 3.89 285 2000 1.41 117,384 0.77 3.98 0.83 3.92 226 1999 4.67 154,123 0.77 3.75 0.87 3.65 224 1998 8.57 146,606 0.76 3.83 0.88 3.71 378 Investor Shares 2002* 3.47% $ 20,132 1.22% 2.22% 1.36% 2.08% 161% 2002 6.71 20,436 1.22 2.51 1.36 2.37 311 2001 10.48 18,601 1.21 3.54 1.37 3.38 285 2000 0.90 19,443 1.17 3.59 1.33 3.43 226 1999 4.35 25,195 1.17 3.36 1.32 3.21 224 1998 8.05 28,159 1.16 3.43 1.43 3.16 378 Flex Shares 2002* 3.23% $ 27,820 1.70% 1.74% 1.91% 1.53% 161% 2002 6.21 24,587 1.70 2.03 1.92 1.81 311 2001 9.97 20,010 1.69 3.04 1.96 2.77 285 2000 0.52 14,678 1.65 3.11 1.95 2.81 226 1999 3.78 16,518 1.65 2.86 2.03 2.48 224 1998 7.50 8,399 1.64 2.95 2.10 2.49 378 LIMITED-TERM FEDERAL MORTGAGE SECURITIES FUND Trust Shares 2002* 3.28% $ 215,729 0.70% 2.95% 0.75% 2.90% 63% 2002 7.53 164,624 0.70 3.72 0.75 3.67 410 2001 10.02 107,674 0.70 5.62 0.76 5.56 532 2000 2.33 125,355 0.67 5.60 0.79 5.48 384 1999 4.75 135,256 0.67 5.28 0.77 5.18 379 1998 7.12 137,488 0.66 5.75 0.77 5.64 163 Investor Shares 2002* 3.24% $ 7,117 0.96% 1.70% 1.32% 1.34% 63% 2002 7.16 1,578 0.96 3.50 2.06 2.40 410 2001 9.84 849 0.95 5.39 2.28 4.06 532 2000 1.93 1,194 0.92 5.31 1.09 5.14 384 1999 4.47 2,214 0.92 5.03 1.52 4.43 379 1998 6.95 2,705 0.91 5.50 1.51 4.90 163 Flex Shares 2002* 3.05% $ 85,285 1.31% 1.36% 1.79% 0.88% 63% 2002 6.83 15,930 1.31 2.88 1.98 2.21 410 2001 9.50 3,452 1.30 4.99 2.60 3.69 532 2000 1.71 1,706 1.27 4.97 2.38 3.86 384 1999 4.14 2,119 1.27 4.69 2.42 3.54 379 1998 6.49 1,543 1.26 5.16 2.72 3.70 163
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS 51 FINANCIAL HIGHLIGHTS - -------------------------------------------------------------------------------- STI CLASSIC FIXED INCOME FUNDS FOR THE PERIOD ENDED NOVEMBER 30, 2002 (UNAUDITED) AND THE YEARS ENDED MAY 31, (UNLESS OTHERWISE INDICATED) FOR A SHARE OUTSTANDING THROUGHOUT THE PERIODS
NET ASSET NET REALIZED AND DISTRIBUTIONS VALUE, NET UNREALIZED GAINS FROM NET DISTRIBUTIONS NET ASSET BEGINNING INVESTMENT (LOSSES) INVESTMENT FROM REALIZED VALUE, END OF PERIOD INCOME ON INVESTMENTS INCOME CAPITAL GAINS OF PERIOD ----------- ------------- ---------------- ----------- --------------- ------------ MARYLAND MUNICIPAL BOND FUND (A) Trust Shares 2002* $10.32 $0.18 $0.12 $(0.18) -- $10.44 2002 10.12 0.38 0.20 (0.38) -- 10.32 2001 9.46 0.42 0.66 (0.42) -- 10.12 2000 10.06 0.42 (0.60) (0.42) -- 9.46 1999 (1) 10.22 0.20 (0.15) (0.20) $(0.01) 10.06 For the years ended November 30: 1998 9.95 0.42 0.27 (0.42) -- 10.22 1997 9.76 0.43 0.19 (0.43) -- 9.95 Flex Shares 2002* $10.34 $0.13 $0.13 $(0.13) -- $10.47 2002 10.14 0.29 0.20 (0.29) -- 10.34 2001 9.48 0.33 0.66 (0.33) -- 10.14 2000 10.08 0.33 (0.60) (0.33) -- 9.48 1999 (1) 10.24 0.15 (0.15) (0.15) $(0.01) 10.08 For the years ended November 30: 1998 9.96 0.33 0.28 (0.33) -- 10.24 1997 9.76 0.34 0.20 (0.34) -- 9.96 SHORT-TERM BOND FUND Trust Shares 2002* $10.01 $0.18 $(0.12) $(0.18) -- $ 9.89 2002 10.04 0.46 (0.03) (0.46) -- 10.01 2001 9.65 0.56 0.39 (0.56) -- 10.04 2000 9.91 0.53 (0.25) (0.53) $(0.01) 9.65 1999 10.05 0.51 (0.10) (0.52) (0.03) 9.91 1998 9.90 0.55 0.16 (0.55) (0.01) 10.05 Investor Shares 2002* $10.04 $0.17 $(0.13) $(0.17) -- $ 9.91 2002 10.06 0.44 (0.02) (0.44) -- 10.04 2001 9.67 0.54 0.39 (0.54) -- 10.06 2000 9.93 0.51 (0.25) (0.51) $(0.01) 9.67 1999 10.07 0.49 (0.10) (0.50) (0.03) 9.93 1998 9.91 0.53 0.17 (0.53) (0.01) 10.07 Flex Shares 2002* $10.03 $0.16 $(0.12) $(0.16) -- $ 9.91 2002 10.06 0.40 (0.03) (0.40) -- 10.03 2001 9.67 0.52 0.39 (0.52) -- 10.06 2000 9.93 0.48 (0.25) (0.48) $(0.01) 9.67 1999 10.07 0.47 (0.11) (0.47) (0.03) 9.93 1998 9.91 0.50 0.17 (0.50) (0.01) 10.07 SHORT-TERM U.S. TREASURY SECURITIES FUND Trust Shares 2002* $10.20 $0.13 $0.12 $(0.13) -- $10.32 2002 10.13 0.37 0.10 (0.37) $(0.03) 10.20 2001 9.85 0.49 0.28 (0.49) -- 10.13 2000 9.95 0.46 (0.10) (0.46) -- 9.85 1999 9.97 0.47 (0.02) (0.47) -- 9.95 1998 9.88 0.51 0.10 (0.52) -- 9.97 Investor Shares 2002* $10.19 $0.12 $0.13 $(0.12) -- $10.32 2002 10.13 0.35 0.08 (0.35) $(0.03) 10.19 2001 9.85 0.48 0.28 (0.48) -- 10.13 2000 9.95 0.45 (0.10) (0.45) -- 9.85 1999 9.96 0.46 (0.01) (0.46) -- 9.95 1998 9.88 0.49 0.09 (0.50) -- 9.96 Flex Shares 2002* $10.18 $0.11 $0.12 $(0.11) -- $10.30 2002 10.11 0.33 0.10 (0.33) $(0.03) 10.18 2001 9.83 0.46 0.28 (0.46) -- 10.11 2000 9.93 0.42 (0.10) (0.42) -- 9.83 1999 9.94 0.44 (0.02) (0.43) -- 9.93 1998 9.85 0.47 0.10 (0.48) -- 9.94 * For the six month period ended November 30, 2002. All ratios for the period have been annualized. + Returns are for the period indicated and have not been annualized. Total return figures do not reflect applicable sales loads. Returns shown do not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares. (1) For the six month period ended May 31, 1999. All ratios for the period have been annualized.
Amounts designated as "--" are either $0 or have been rounded to $0. 52
RATIO OF RATIO OF RATIO OF EXPENSES TO NET INVESTMENT RATIO OF NET INVESTMENT AVERAGE NET INCOME TO EXPENSES INCOME TO ASSETS AVERAGE NET NET ASSETS, TO AVERAGE (EXCLUDING ASSETS (EXCLUDING PORTFOLIO TOTAL END OF AVERAGE NET WAIVERS AND WAIVERS AND TURNOVER RETURN+ PERIOD (000) NET ASSETS ASSETS REIMBURSEMENTS) REIMBURSEMENTS) RATE -------- ------------- -------------- ------------- --------------- ---------------- ------------ MARYLAND MUNICIPAL BOND FUND (A) Trust Shares 2002* 2.92% $ 37,480 0.70% 3.44% 0.78% 3.36% 8% 2002 5.80 33,668 0.71 3.69 0.79 3.61 45 2001 11.59 26,526 0.72 4.16 0.82 4.06 42 2000 (1.78) 26,176 0.68 4.24 0.80 4.12 14 1999 (1) 0.48 29,658 0.70 3.83 1.37 3.16 19 For the years ended November 30: 1998 7.03 19,115 0.62 4.11 1.15 3.58 12 1997 6.50 11,461 0.63 4.38 1.16 3.85 5 Flex Shares 2002* 2.43% $ 26,268 1.64% 2.49% 1.81% 2.32% 8% 2002 4.84 23,215 1.64 2.75 1.83 2.56 45 2001 10.59 12,090 1.63 3.24 1.97 2.90 42 2000 (2.66) 6,212 1.59 3.34 1.95 2.98 14 1999 (1) 0.05 7,723 1.59 2.94 1.98 2.55 19 For the years ended November 30: 1998 6.17 3,246 1.57 3.16 1.96 2.77 12 1997 5.64 561 1.54 3.43 2.00 2.97 5 SHORT-TERM BOND FUND Trust Shares 2002* 0.65% $300,195 0.70% 3.66% 0.74% 3.62% 44% 2002 4.29 305,884 0.70 4.48 0.75 4.43 142 2001 10.13 215,458 0.70 5.71 0.76 5.65 87 2000 2.87 180,402 0.67 5.40 0.76 5.31 70 1999 4.06 209,904 0.67 5.12 0.77 5.02 108 1998 7.31 120,422 0.66 5.47 0.79 5.34 87 Investor Shares 2002* 0.44% $ 3,912 0.91% 3.44% 1.26% 3.09% 44% 2002 4.19 5,767 0.91 4.28 1.26 3.93 142 2001 9.90 4,176 0.90 5.47 1.71 4.66 87 2000 2.67 1,446 0.87 5.20 1.75 4.32 70 1999 3.88 1,825 0.87 4.92 1.59 4.20 108 1998 7.19 1,949 0.86 5.27 1.71 4.42 87 Flex Shares 2002* 0.37% $ 30,782 1.26% 3.09% 1.84% 2.51% 44% 2002 3.75 26,392 1.26 3.89 1.87 3.28 142 2001 9.60 10,682 1.25 5.09 2.17 4.17 87 2000 2.31 2,065 1.22 4.85 2.41 3.66 70 1999 3.50 2,341 1.22 4.55 2.33 3.44 108 1998 6.84 2,110 1.21 4.93 2.85 3.29 87 SHORT-TERM U.S. TREASURY SECURITIES FUND Trust Shares 2002* 2.45% $120,333 0.69% 2.50% 0.75% 2.44% 82% 2002 4.69 107,169 0.70 3.57 0.76 3.51 117 2001 8.02 88,398 0.71 4.95 0.78 4.88 87 2000 3.75 72,570 0.67 4.70 0.79 4.58 50 1999 4.59 56,027 0.67 4.69 0.78 4.58 57 1998 6.30 46,920 0.66 5.19 0.84 5.01 39 Investor Shares 2002* 2.47% $ 10,441 0.86% 2.29% 1.10% 2.05% 82% 2002 4.44 4,735 0.86 3.36 1.41 2.81 117 2001 7.87 2,179 0.85 4.81 1.56 4.10 87 2000 3.58 2,066 0.82 4.50 1.44 3.88 50 1999 4.54 2,799 0.82 4.54 1.34 4.02 57 1998 6.04 3,277 0.81 5.07 1.33 4.55 39 Flex Shares 2002* 2.24% $111,218 1.11% 2.06% 1.78% 1.39% 82% 2002 4.29 70,720 1.11 3.09 1.81 2.39 117 2001 7.67 27,861 1.10 4.45 1.96 3.59 87 2000 3.34 5,391 1.07 4.26 2.04 3.29 50 1999 4.32 4,931 1.07 4.22 2.25 3.04 57 1998 5.90 1,413 1.06 4.81 2.87 3.00 39
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS 53 FINANCIAL HIGHLIGHTS - -------------------------------------------------------------------------------- STI CLASSIC FIXED INCOME FUNDS FOR THE PERIOD ENDED NOVEMBER 30, 2002 (UNAUDITED) AND THE YEARS ENDED MAY 31, (UNLESS OTHERWISE INDICATED) FOR A SHARE OUTSTANDING THROUGHOUT THE PERIODS
NET ASSET NET REALIZED AND DISTRIBUTIONS VALUE, NET UNREALIZED GAINS FROM NET DISTRIBUTIONS NET ASSET BEGINNING INVESTMENT (LOSSES) INVESTMENT FROM REALIZED VALUE, END OF PERIOD INCOME ON INVESTMENTS INCOME CAPITAL GAINS OF PERIOD ----------- ----------- ----------------- --------------- ------------- ----------- STRATEGIC INCOME FUND Trust Shares 2002* $ 9.80 $0.32 $(0.25) $(0.32) -- $ 9.55 2002 (2) 10.00 0.27 (0.20) (0.27) -- 9.80 Flex Shares 2002* $ 9.80 $0.29 $(0.25) $(0.29) -- $ 9.55 2002 (2) 10.00 0.25 (0.20) (0.25) -- 9.80 U.S. GOVERNMENT SECURITIES FUND Trust Shares 2002* $10.47 $0.25 $0.24 $(0.25) -- $ 10.71 2002 10.38 0.54 0.26 (0.54) $(0.17) 10.47 2001 9.86 0.58 0.52 (0.58) -- 10.38 2000 10.28 0.58 (0.42) (0.58) -- 9.86 1999 10.46 0.59 (0.18) (0.59) -- 10.28 1998 10.02 0.61 0.44 (0.61) -- 10.46 Investor Shares 2002* $10.47 $0.23 $0.24 $(0.23) -- $10.71 2002 10.38 0.50 0.26 (0.50) $(0.17) 10.47 2001 9.86 0.54 0.52 (0.54) -- 10.38 2000 10.28 0.54 (0.42) (0.54) -- 9.86 1999 10.45 0.54 (0.17) (0.54) -- 10.28 1998 10.02 0.57 0.43 (0.57) -- 10.45 Flex Shares 2002* $10.48 $0.20 $0.23 $(0.20) -- $10.71 2002 10.38 0.45 0.27 (0.45) $(0.17) 10.48 2001 9.86 0.49 0.52 (0.49) -- 10.38 2000 10.28 0.49 (0.42) (0.49) -- 9.86 1999 10.46 0.49 (0.18) (0.49) -- 10.28 1998 10.02 0.52 0.44 (0.52) -- 10.46 VIRGINIA INTERMEDIATE MUNICIPAL BOND FUND (A) Trust Shares 2002* $10.29 $0.19 $0.07 $(0.19) -- $10.36 2002 10.14 0.40 0.15 (0.40) -- 10.29 2001 9.58 0.42 0.56 (0.42) -- 10.14 2000 10.20 0.43 (0.57) (0.43) $(0.05) 9.58 1999(1) 10.44 0.21 (0.17) (0.21) (0.07) 10.20 For years ended November 30: 1998 10.31 0.45 0.17 (0.45) (0.04) 10.44 1997 10.22 0.46 0.09 (0.46) -- 10.31 Investor Shares 2002* $10.29 $0.18 $0.07 $(0.18) -- $10.36 2002 10.14 0.39 0.16 (0.40) -- 10.29 2001 9.59 0.42 0.55 (0.42) -- 10.14 2000 10.20 0.42 (0.56) (0.42) $(0.05) 9.59 1999(1) 10.45 0.22 (0.18) (0.22) (0.07) 10.20 For years ended November 30: 1998 10.31 0.46 0.17 (0.45) (0.04) 10.45 1997 10.21 0.47 0.09 (0.46) -- 10.31 VIRGINIA MUNICIPAL BOND FUND (A) Trust Shares 2002* $10.48 $0.20 $0.15 $(0.20) -- $10.63 2002 10.29 0.41 0.19 (0.41) -- 10.48 2001 9.64 0.45 0.65 (0.45) -- 10.29 2000 10.43 0.45 (0.78) (0.45) $(0.01) 9.64 1999(1) 10.68 0.22 (0.19) (0.22) (0.06) 10.43 For years ended November 30: 1998 10.44 0.47 0.27 (0.47) (0.03) 10.68 1997 10.28 0.48 0.17 (0.48) (0.01) 10.44 Flex Shares 2002* $10.53 $0.15 $0.15 $(0.15) -- $10.68 2002 10.34 0.31 0.19 (0.31) -- 10.53 2001 9.68 0.35 0.66 (0.35) -- 10.34 2000 10.48 0.36 (0.79) (0.36) $(0.01) 9.68 1999(1) 10.73 0.17 (0.18) (0.18) (0.06) 10.48 For years ended November 30: 1998 10.48 0.37 0.28 (0.37) (0.03) 10.73 1997 10.31 0.39 0.18 (0.39) (0.01) 10.48 * For the six month period ended November 30, 2002. All ratios for the period have been annualized. + Returns are for the period indicated and have not been annualized. Total return figures do not reflect applicable sales loads. Returns shown do not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares. (1)For the six month period ended May 31, 1999. All ratios for the period have been annualized. (2)Commenced operations on November 30, 2001. All ratios for the period have been annualized. (A)On May 24, 1999, the CrestFund Virginia Intermediate Municipal Bond and the CrestFund Virginia Municipal Bond Funds exchanged all of their assets and certain liabilities for shares of the Virginia Intermediate Municipal Bond and the Virginia Municipal Bond Funds, respectively. The CrestFund Virginia Intermediate Municipal Bond and the CrestFund Virginia Municipal Bond Funds are the accounting survivors in this transaction, and as a result, their basis of accounting for assets and liabilities and their operating results for the periods prior to May 24, 1999 have been carried forward in these financial highlights.
Amounts designated as "--" are either $0 or have been rounded to $0. 54
- ------------------------------------------------------------------------------------------------------------------------------ RATIO OF RATIO OF RATIO OF EXPENSES TO NET INVESTMENT RATIO OF NET INVESTMENT AVERAGE NET INCOME TO EXPENSES INCOME TO ASSETS AVERAGE NET NET ASSETS, TO AVERAGE (EXCLUDING ASSETS (EXCLUDING PORTFOLIO TOTAL END OF AVERAGE NET WAIVERS AND WAIVERS AND TURNOVER RETURN+ PERIOD (000) NET ASSETS ASSETS REIMBURSEMENTS) REIMBURSEMENTS) RATE -------- ------------- -------------- ------------- --------------- ---------------- ------------ STRATEGIC INCOME FUND Trust Shares 2002* 0.76% $ 52,484 0.91% 3.67% 1.01% 3.57% 30% 2002 (2) 0.74 43,717 0.94 6.07 1.04 5.97 43 Flex Shares 2002* 0.51% $ 51,993 1.41% 3.18% 2.04% 2.55% 30% 2002 (2) 0.55 39,490 1.53 5.49 2.07 4.95 43 U.S. GOVERNMENT SECURITIES FUND Trust Shares 2002* 4.69% $ 218,576 0.81% 4.38% 0.84% 4.35% 77% 2002 7.90 168,609 0.82 5.09 0.85 5.06 262 2001 11.41 148,666 0.81 5.66 0.85 5.62 207 2000 1.63 85,420 0.77 5.77 0.84 5.70 29 1999 3.90 102,167 0.77 5.58 0.88 5.47 19 1998 10.76 34,899 0.76 5.93 0.92 5.77 14 Investor Shares 2002* 4.46% $ 4,609 1.22% 4.09% 1.41% 3.90% 77% 2002 7.47 8,483 1.22 4.70 1.40 4.52 262 2001 10.95 6,617 1.21 5.21 1.83 4.59 207 2000 1.19 1,407 1.17 5.34 2.14 4.37 29 1999 3.56 2,534 1.17 5.17 1.60 4.74 19 1998 10.23 3,225 1.16 5.53 1.76 4.93 14 Flex Shares 2002* 4.10% $ 37,108 1.73% 3.47% 1.93% 3.27% 77% 2002 7.06 31,922 1.73 4.17 1.93 3.97 262 2001 10.45 21,617 1.72 4.71 2.04 4.39 207 2000 0.70 7,750 1.68 4.85 2.28 4.25 29 1999 2.99 11,520 1.68 4.66 2.08 4.26 19 1998 9.78 4,022 1.67 5.02 2.32 4.37 14 VIRGINIA INTERMEDIATE MUNICIPAL BOND FUND (A) Trust Shares 2002* 2.48% $ 198,855 0.75% 3.53% 0.75% 3.53% 18% 2002 5.52 191,406 0.75 3.86 0.75 3.86 33 2001 10.39 194,849 0.73 4.23 0.75 4.21 32 2000 (1.31) 202,209 0.76 4.35 0.76 4.35 18 1999(1) 0.42 240,083 0.84 4.12 1.18 3.78 19 For years ended November 30: 1998 6.10 243,606 0.79 4.33 0.97 4.15 24 1997 5.55 237,096 0.78 4.57 0.93 4.42 30 Investor Shares 2002* 2.46% $ 7,361 0.79% 3.48% 1.09% 3.18% 18% 2002 5.47 7,257 0.79 3.82 1.11 3.50 33 2001 10.23 6,197 0.76 4.20 1.11 3.85 32 2000 (1.24) 6,808 0.79 4.33 0.94 4.18 18 1999(1) 0.35 7,706 0.79 4.17 0.93 4.03 19 For years ended November 30: 1998 6.19 7,899 0.79 4.33 0.94 4.18 24 1997 5.65 7,826 0.79 4.56 0.94 4.41 30 VIRGINIA MUNICIPAL BOND FUND (A) Trust Shares 2002* 3.32% $ 55,425 0.77% 3.68% 0.77% 3.68% 9% 2002 5.90 56,586 0.77 3.90 0.77 3.90 38 2001 11.51 56,573 0.77 4.40 0.78 4.39 60 2000 (3.18) 48,980 0.74 4.53 0.79 4.48 19 1999(1) 0.27 31,939 0.76 4.20 1.30 3.66 7 For years ended November 30: 1998 7.19 29,252 0.69 4.41 1.10 4.00 28 1997 6.46 20,044 0.69 4.65 1.09 4.25 39 Flex Shares 2002* 2.82% $ 15,000 1.70% 2.72% 1.85% 2.57% 9% 2002 4.93 13,428 1.70 2.97 1.88 2.79 38 2001 10.58 7,983 1.69 3.47 2.00 3.16 60 2000 (4.13) 5,367 1.65 3.61 2.08 3.18 19 1999(1) (0.16) 6,939 1.65 3.32 1.91 3.06 7 For years ended November 30: 1998 6.24 3,697 1.64 3.46 1.92 3.18 28 1997 5.58 1,476 1.60 3.73 2.00 3.33 39
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS 55 NOTES TO FINANCIAL STATEMENTS - -------------------------------------------------------------------------------- STI CLASSIC FIXED INCOME 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 Information and Technology Fund the Growth and Income Fund, the International Equity Fund, the International Equity Index Fund, the Life Vision Moderate Growth Fund, the Life Vision Aggressive Growth Fund, the Life Vision Growth and Income 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, and the Virginia Municipal Bond Fund, (collectively the "Fixed Income Funds" or the "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, 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 Fixed Income Funds. The financial statements of the Equity Funds, the Retail Money Market 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 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 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 to maturity using the scientific interest method, which approximates the effective interest method. 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. The maximum offering price per share for Investor shares of the Florida Tax-Exempt Bond, the Georgia Tax-Exempt Bond, the Investment Grade Bond, the Investment Grade Tax-Exempt Bond, the U.S. Government Securities, and the Virginia Intermediate Municipal Bond Funds is equal to the net asset value per share plus a sales load of 3.75%. The maximum offering price per share for Investor shares of the Short-Term U.S. Treasury Securities Fund is equal to the net asset value per share plus a 56 - -------------------------------------------------------------------------------- (UNAUDITED) sales load of 1.00%. The maximum offering price per share for Investor shares of the Short-Term Bond Fund is equal to the net asset value per share plus a sales load of 2.00%. The maximum offering price per share for Investor shares of the Limited-Term Federal Mortgage Securities Fund is equal to the net asset value per share plus a sales load of 2.50%. Flex Shares of the Funds may be purchased at their net asset value. Shares redeemed within the first year after purchase will be subject to a contingent deferred sales charge ("CDSC") equal to 2.00% for either the net asset value of the shares at the time of purchase or the net asset value of the shares next calculated after the Fund receives the sale request, whichever is less. The CDSC will not apply to shares redeemed after such time. SECURITIES PURCHASED ON A WHEN-ISSUED BASIS -- Delivery and payment for securities that have been purchased by a Fund on a forward commitment or when-issued basis can take place up to a month or more after the transaction date. During this period, such securities are subject to market fluctuations and the portfolio maintains, in a segregated account with its custodian, assets with a market value equal to or greater than the amount of its purchase commitments. The purchase of securities on a when-issued or forward commitment basis may increase the volatility of a Fund's net asset value if the Fund makes such investments while remaining substantially fully invested. FOREIGN CURRENCY TRANSLATION -- The books and records of the Strategic Income Fund are maintained in U.S. dollars. Foreign currency amounts are translated into U.S. dollars on the following bases: (i) market value of investment securities, other assets and liabilities at the current rate of exchange; and (ii) purchases and sales of investment securities, income and expenses at the relevant rates of exchange prevailing on the respective dates of such transactions. The Strategic Income Fund isolates the effect of fluctuations in foreign currency rates when determining the gain or loss upon sale or maturity of foreign currency denominated debt obligations for Federal income tax purposes. The Strategic Income Fund reports gains and losses on foreign currency-related transactions as realized and unrealized gains and losses for financial reporting purposes, whereas such gains and losses are treated as ordinary income or loss for Federal income tax purposes. FORWARD FOREIGN CURRENCY CONTRACTS -- The Strategic Income Fund may enter into forward foreign currency contracts as hedges against either specific transactions, fund positions or anticipated fund positions. The aggregate principal amounts of the contracts are not recorded as the Fund does not intend to hold the contracts to maturity. All commitments are "marked-to-market" daily at the applicable foreign exchange rate, and any resulting unrealized gains or losses are recorded currently. The Fund realizes gains and losses at the time forward contracts are extinguished. Unrealized gains or losses on outstanding positions in forward foreign currency contracts held at the close of the year are recognized as ordinary income or loss for federal income tax purposes. The following forward foreign currency contracts were outstanding on November 30, 2002: IN UNREALIZED CONTRACTS TO EXCHANGE APPRECIATION DELIVER/RECEIVE FOR (DEPRECIATION) MATURITY DATES (000) (000) (000) -------------- ---------------- ---------- -------------- FOREIGN CURRENCY SALES 02/21/03 AUD 2,600 1,449 $ (1) 02/21/03 CAD 2,600 1,655 (20) 02/21/03 EUR 9,000 8,919 150 02/21/03 GBP 1,100 1,702 36 CURRENCY LEGEND AUD-- Australian Dollar CAD-- Canadian Dollar EUR-- Euro Dollar GBP-- British Pound TBA PURCHASE COMMITMENTS -- The Funds may enter into "TBA" (To Be Announced) purchase commitments to purchase securities for a fixed price at a future date beyond customary settlement time. TBA purchase commitments may be considered securities in themselves, and involve a risk of loss if the value of the security to be purchased declines prior to settlement date. Unsettled TBApurchase commitments are valued at the current market value of the underlying securities, generally according to the procedures described under "Security Valuation." OTHER -- Expenses that are directly related to a specific Fund are charged to that Fund. Class specific expenses are borne by that class. Other operating expenses of the Trust are pro-rated to the Funds on the basis of relative net assets. Fund expenses are pro-rated to the respective classes on the basis of relative net assets. DISTRIBUTIONS TO SHAREHOLDERS -- Distributions to shareholders, which are determined in accordance with income tax regulations, are recorded on the ex-dividend date. Distributions from net investment income for each of the Fixed Income Funds are declared daily and paid monthly. Any net realized 57 NOTES TO FINANCIAL STATEMENTS (continued) - -------------------------------------------------------------------------------- STI CLASSIC FIXED INCOME FUNDS NOVEMBER 30, 2002 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 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 SEI Investments Global Funds Services, (formerly SEIInvestments Mutual Funds Services) (the "Administrator") and/or SEI Investments Distribution Co. (the "Distributor"). Such officers are paid no fees by the Trust for serving as officers of the Trust. The Trust has entered into an agreement with the Distributor to act as an agent in placing repurchase agreements for the Trust. For the period ended November 30, 2002, the following Funds paid the Distributor through a reduction in the yield earned by the Funds on those repurchase agreements: FEES --------- Florida Tax-Exempt Bond Fund .................... $ 410 Georgia Tax-Exempt Bond Fund .................... 43 High Income Fund ................................ 66 Investment Grade Bond Fund ...................... 14,474 Investment Grade Tax-Exempt Bond Fund ........... 4,706 Limited-Term Federal Mortgage Securities Fund ... 6,507 U.S. Government Securities Fund ................. 624 4. Administration, Transfer Agency Servicing and Distribution Agreements: The Trust and the Administrator are parties to an Administration Agreement dated May 29, 1995, as amended November 19, 1997 and March 1, 1999, under which the Administrator provides administrative services for an annual fee (expressed as a percentage of the combined average daily net assets of the Trust and STI Classic Variable Trust) of: 0.12% up to $1 billion, 0.09% on the next $4 billion, 0.07% on the next $3 billion, 0.065% on the next $2 billion and 0.06% for over $10 billion. The Trust and Federated Services Company are parties to a Transfer Agency servicing agreement dated May 14, 1994 under which Federated Services Company provides transfer agency services to the Trust. The Trust and SunTrust Securities Inc. ("STS"), a wholly- owned subsidiary of SunTrust Banks, 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 period ended November 30, 2002 were: Florida Tax-Exempt Bond Fund .................... $ 2,165 Georgia Tax-Exempt Bond Fund .................... 1,539 High Income Fund ................................ 993 Investment Grade Bond Fund ...................... 12,563 Investment Grade Tax-Exempt Bond Fund ........... 2,766 Limited-Term Federal Mortgage Securities Fund ... 3,311 Maryland Municipal Bond Fund .................... 862 Short-Term Bond Fund ............................ 4,551 Short-Term U.S. Treasury Securities Fund ........ 2,882 Strategic Income Fund ........................... 1,282 U.S. Government Securities Fund ................. 3,287 Virginia Intermediate Municipal Bond Fund ....... 2,794 Virginia Municipal Bond Fund .................... 981 The Trust and the Distributor are parties to a Distribution and Service Agreement dated May 29, 1995 regarding the Flex Shares and a Distribution Agreement dated November 21, 1995 with respect to the Trust and Investor shares. The Distributor will receive no fees for its distribution services under this agreement for the Trust Shares of any fund. With respect to the Investor Shares and Flex Shares, the Distributor receives amounts, pursuant to a Distribution Plan and (in the case of Flex Shares) a Distribution and Service Plan, as outlined in the table in footnote 5 under the column titled "Distribution Fee". 5. Investment Advisory and Custodian Agreements: The Trust and Trusco Capital Management, Inc. (the "Investment Adviser") have entered into advisory agreements dated May 29, 1992, June 15, 1993, December 20, 1993, and last amended as of April 8, 2002. Under terms of the respective amended agreements, the Funds are charged the following annual fees based upon average daily net assets: MAXIMUM FLEX SHARE MAXIMUM DISTRI- MAXIMUM INVESTOR BUTION ANNUAL SHARE AND ADVISORY DISTRI- SERVICE FEE BUTION FEE FEE ---------- ---------- ---------- Florida Tax-Exempt Bond Fund ...... 0.65% 0.18% 1.00% Georgia Tax-Exempt Bond Fund ...... 0.65% 0.18% 1.00% High Income Fund .................. 0.80% -- 1.00% Investment Grade Bond Fund ........ 0.74% 0.43% 1.00% Investment Grade Tax-Exempt Bond Fund 0.74% 0.43% 1.00% Limited-Term Federal Mortgage Securities Fund .................. 0.65% 0.23% 1.00% Maryland Municipal Bond Fund ...... 0.65% -- 1.00% Short-Term Bond Fund .............. 0.65% 0.23% 1.00% Short-Term U.S. Treasury Securities Fund ............................. 0.65% 0.18% 1.00% Strategic Income Fund ............. 0.85% -- 1.00% U.S. Government Securities Fund ... 0.74% 0.38% 1.00% Virginia Intermediate Municipal Bond Fund ........................ 0.65% 0.15% -- Virginia Municipal Bond Fund ...... 0.65% -- 1.00% The Investment Adviser and the Distributor have voluntarily agreed to waive all or a portion of their fees (and to reimburse Funds expenses) in order to limit operating expenses. Fee waivers and expense reimbursements are voluntary and may be terminated at any time. 58 - -------------------------------------------------------------------------------- (UNAUDITED) SunTrust Bank acts as Custodian for all of the Funds except the Strategic Income Fund, which utilizes the Bank of New York as Custodian. Fees of the Custodians are paid on the basis of net assets and transaction fees of the Funds. The Custodians play no role in determining the investment policies of the Trust or which securities are to be purchased or sold in the Funds. 6. Investment Transactions: The cost of purchases and the proceeds from sales of securities, excluding short-term investments and U.S. Government securities, for the period ended November 30, 2002, were as follows: PURCHASES SALES (000) (000) ----------- -------- Florida Tax-Exempt Bond Fund .......... $46,260 $32,603 Georgia Tax-Exempt Bond Fund .......... 14,241 11,382 High Income Fund ...................... 17,845 11,942 Investment Grade Bond Fund ............ 319,528 273,639 Investment Grade Tax-Exempt Bond Fund . 302,234 279,452 Maryland Municipal Bond Fund .......... 10,568 4,749 Short-Term Bond Fund .................. 54,227 70,066 Strategic Income Fund ................. 23,700 6,519 Virginia Intermediate Municipal Bond Fund ............................ 43,591 33,176 Virginia Municipal Bond Fund .......... 7,828 5,975 The cost of purchases and proceeds from sales of U.S. Government securities were: PURCHASES SALES (000) (000) ----------- --------- Investment Grade Bond Fund ......... $210,483 $330,636 Limited-Term Federal Mortgage Securities Fund ................... 256,865 145,131 Short-Term Bond Fund ............... 94,722 62,766 Short-Term U.S. Treasury Securities Fund ................... 216,550 161,234 Strategic Income Fund .............. 22,008 21,387 U.S. Government Securities Fund .... 225,726 180,486 7. Investment Risks: The Strategic Income Fund invests in securities of foreign issuers in various countries. These investments may involve certain considerations and risks not typically associated with investments in the United States, as a result of, among other factors, the possibility of future political and economic developments and the level of governmental supervision and regulation of securities markets in the respective countries. The Strategic Income Fund invests in debt securities, the market value of which may change in response to interest rate changes. Also, the ability of the issuers of debt securities held by the Strategic Income Fund to meet its obligations may be affected by economic and political developments in a specific country, industry or region. 8. Federal Tax Information: 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 Funds had capital loss carryforwards at May 31, 2002 as follows (000): POST CAPITAL LOSS POST OCTOBER CARRYFORWARDS EXPIRING OCTOBER CURRENCY 2006 2007 2008 2009 LOSS LOSS ---- ---- ----- ---- ------ --------- Georgia Tax-Exempt Bond Fund $ -- $-- $ 32 $ 1,069 $ 50 $ -- High Income Fund -- 17 707 21 597 -- Investment Grade Bond Fund -- -- 10,283 30,691 7,696 -- Limited-Term Federal Mortgage Securities Fund -- -- -- -- 180 -- Maryland Municipal Bond Fund -- -- -- 20 -- -- Short-Term Bond Fund 271 -- 946 987 2,930 -- Strategic Income Fund -- -- -- -- 55 546 U.S. Government Securities Fund -- -- -- -- 1,347 -- Virginia Municipal Bond Fund -- -- -- 55 -- -- Post-October losses represent losses realized on investment and foreign currency transactions from November 1, 2001 through May 31, 2002 that, in accordance with Federal income tax regulations the Fund has elected to defer and treat as having arisen in the following fiscal year. For tax purposes, the losses in the Funds can be carried forward for a maximum of eight years to offset any net realized capital gains. At November 30, 2002, the total cost of securities and the net realized gains or losses on securities sold for Federal income tax purposes were 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 NET GROSS GROSS UNREALIZED UNREALIZED UNREALIZED APPRECIATION APPRECIATION (DEPRECIATION) (DEPRECIATION) (000) (000) (000) ------------ ------------ ------------ Florida Tax-Exempt Bond Fund $ 6,758 $ (332) $ 6,426 Georgia Tax-Exempt Bond Fund 5,731 (220) 5,511 High Income Fund 1,180 (10,527) (9,347) Investment Grade Bond Fund 31,156 (3,183) 27,973 Investment Grade Tax-Exempt Bond Fund 3,811 (1,081) 2,730 Limited-Term Federal Mortgage Securities Fund 4,694 (155) 4,539 Maryland Municipal Bond Fund 1,724 (138) 1,586 Short-Term Bond Fund 6,491 (1,428) 5,063 Short-Term U.S. Treasury Securities Fund 2,938 (126) 2,812 Strategic Income Fund 3,272 (5,474) (2,202) U.S. Government Securities Fund 5,570 (770) 4,800 Virginia Intermediate Municipal Bond Fund 6,224 (676) 5,548 Virginia Municipal Bond Fund 2,926 (46) 2,880 59
NOTES TO FINANCIAL STATEMENTS (continued) - --------------------------------------------------------------------------------------------------------------------------- STI CLASSIC FIXED INCOME FUNDS NOVEMBER 30, 2002 9. Capital Share Transactions: Capital Share Transactions for the Funds were as follows (000): FLORIDA TAX-EXEMPT GEORGIA TAX-EXEMPT BOND FUND BOND FUND HIGH INCOME FUND (1) --------------------- --------------------- ---------------------- 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 -------- --------- --------- --------- --------- --------- Trust Shares: Shares Issued ................................. 1,361 2,853 1,444 2,225 1,670 4,037 Shares Issued in Lieu of Cash Distributions ... 25 92 28 71 124 19 Shares Redeemed ............................... (952) (1,904) (1,461) (1,922) (338) (87) ------ ------ ------- ------- ------- ----- Net Trust Share Transactions .................... 434 1,041 11 374 1,456 3,969 ------ ------ ------- ------- ------- ----- Investor Shares: Shares Issued ................................. 382 20 29 26 -- -- Shares Issued in Lieu of Cash Distributions 6 7 2 6 -- Shares Redeemed ............................... (111) (14) (60) (43) -- -- ------ ------ ------- ------- ------- ----- Net Investor Share Transactions ................. 277 13 (29) (11) -- -- ------ ------ ------- ------- ------- ----- Flex Shares: Shares Issued ................................. 1,166 1,036 127 470 1,277 4,635 Shares Issued in Lieu of Cash Distributions 29 43 17 38 177 Shares Redeemed ............................... (275) (268) (93) (515) (1,707) (951) ------ ------ ------- ------- ------- ----- Net Flex Share Transactions ..................... 920 811 51 (7) (253) 3,879 ------ ------ ------- ------- ------- ----- Net Change in Capital Shares .................... 1,631 1,865 33 356 1,203 7,848 ====== ====== ======= ======= ======= =====
SHORT-TERM SHORT-TERM U.S. TREASURY STRATEGIC BOND FUND SECURITIES FUND INCOME FUND ---------------------- ---------- ----------- ------------------- 06/01/02- 06/01/01- 06/01/02- 06/01/01- 06/01/02- 11/30/01*- 11/30/02 05/31/02 11/30/02 05/31/02 11/30/02 05/31/02 ---------- --------- ---------- --------- ---------- --------- Trust Shares: Shares Issued ................................. 5,163 18,276 2,282 4,611 1,472 4,694 Shares Issued in Lieu of Cash Distributions ... 166 391 22 69 31 Shares Redeemed ............................... (5,524) (9,574) (1,157) (2,898) (466) (247) ------ ------ ------- ------- ------- ------ Net Trust Share Transactions .................... (195) 9,093 1,147 1,782 1,037 4,462 ------ ------ ------- ------- ------- ------ Investor Shares: Shares Issued ................................. 166 633 639 982 -- -- Shares Issued in Lieu of Cash Distributions ... 7 20 7 9 -- Shares Redeemed ............................... (353) (493) (99) (742) -- -- ------ ------ ------- ------- ------- ------ Net Investor Share Transactions ................. (180) 160 547 249 -- -- ------ ------ ------- ------- ------- ------ Flex Shares: Shares Issued ................................. 1,019 2,069 5,113 6,874 2,136 4,189 Shares Issued in Lieu of Cash Distributions ... 35 49 81 127 112 Shares Redeemed ............................... (578) (549) (1,348) (2,808) (831) (204) ------ ------ ------- ------- ------- ------ Net Flex Share Transactions ..................... 476 1,569 3,846 4,193 1,417 4,030 ------ ------ ------- ------- ------- ------ Net Change in Capital Shares .................... 101 10,822 5,540 6,224 2,454 8,492 ====== ====== ======= ======= ======= ====== * COMMENCED OPERATIONS ON NOVEMBER 30, 2001 (1) TRUST SHARES WERE OFFERED BEGINNING ON OCTOBER 3, 2001.
60
- ----------------------------------------------------------------------------------------------------------------------- (UNAUDITED) INVESTMENT GRADE INVESTMENT GRADE TAX- BOND FUND EXEMPT BOND FUND ------------------------- ------------------------- 06/01/02- 06/01/01- 06/01/02- 06/01/01- 11/30/02 05/31/02 11/30/02 05/31/02 ---------- --------- --------- ---------- Trust Shares: Shares Issued ............................... 11,221 21,691 2,490 4,771 Shares Issued in Lieu of Cash Distributions . 793 1,662 29 252 Shares Redeemed ............................. (17,231) (20,837) (1,398) (3,920) ------- -------- ------- -------- Net Trust Share Transactions .................. (5,217) 2,516 1,121 1,103 ------- -------- ------- -------- Investor Shares: Shares Issued ............................... 991 4,568 135 299 Shares Issued in Lieu of Cash Distributions . -- 45 84 15 Shares Redeemed ............................. (512) (4,694) (216) (235) ------- -------- ------- -------- Net Investor Share Transactions ............... 524 (42) (66) 131 ------- -------- ------- -------- Flex Shares: Shares Issued ............................... 970 1,926 571 844 Shares Issued in Lieu of Cash Distributions . 195 58 113 16 Shares Redeemed ............................. (1,106) (1,025) (362) (555) ------- -------- ------- -------- Net Flex Share Transactions ................... (78) 1,014 225 366 ------- -------- ------- -------- Net Change in Capital Shares .................. (4,771) 3,488 1,280 1,600 ======= ======== ======= ========
U.S. GOVERNMENT SECURITIES FUND VIRGINIA INTERMEDIATE MUNICIPAL BOND FUND ---------------------------- ---------------------------------------- 06/01/02- 06/01/01- 06/01/02- 06/01/01- 11/30/02 05/31/02 11/30/02 05/31/02 -------- ---------- --------- -------- Trust Shares: Shares Issued ............................... 6,892 6,994 1,447 1,652 Shares Issued in Lieu of Cash Distributions ........................ 15 137 409 14 Shares Redeemed ............................. (2,714) (5,627) (863) (2,287) -------- ------- ------ ------- Net Trust Share Transactions .................. 4,315 1,776 598 (624) -------- ------- ------ ------- Investor Shares: Shares Issued ............................... 769 275 48 231 Shares Issued in Lieu of Cash Distributions . -- 13 44 9 Shares Redeemed ............................. (1,161) (147) (52) (155) -------- ------- ------ ------- Net Investor Share Transactions ............... (379) 172 5 94 -------- ------- ------ ------- Flex Shares: Shares Issued ............................... 1,063 2,268 -- -- Shares Issued in Lieu of Cash Distributions . 45 53 161 -- Shares Redeemed ............................. (699) (1,465) -- -- -------- ------- ------ ------- Net Flex Share Transactions ................... 417 964 -- -- -------- ------- ------ ------- Net Change in Capital Shares .................. 4,353 2,912 603 (530) ======== ======= ====== =======
LIMITED-TERM FEDERAL MARYLAND MUNICIPAL MORTGAGE SECURITIES FUND BOND FUND ----------------------------- -------------------------- 06/01/02- 06/01/01- 06/01/02- 06/01/01 11/30/02 05/31/02 11/30/02 05/31/02 --------- ---------- ----------- ---------- Trust Shares: Shares Issued ............................... 7,379 9,229 1,531 1,175 Shares Issued in Lieu of Cash Distributions . 184 277 1420 Shares Redeemed ............................. (2,843) (4,285) (1,219) (554) ------- ------- ------- ------- Net Trust Share Transactions .................. 4,720 5,221 326 641 ------- ------- ------- ------- Investor Shares: Shares Issued ............................... 589 113 -- -- Shares Issued in Lieu of Cash Distributions . 67 6 4 -- Shares Redeemed ............................. (65) (49) -- -- ------- ------- ------- ------- Net Investor Share Transactions ............... 530 68 -- -- ------- ------- ------- ------- Flex Shares: Shares Issued ............................... 6,860 1,304 481 1,325 Shares Issued in Lieu of Cash Distributions . 68 22 26 36 Shares Redeemed ............................. (295) (125) (242) (308) ------- ------- ------- ------- Net Flex Share Transactions ................... 6,633 1,201 265 1,053 ------- ------- ------- ------- Net Change in Capital Shares .................. 11,883 6,490 591 1,694 ======= ======= ======= =======
VIRGINIA MUNICIPAL BOND FUND -------------------------------- 06/01/02- 06/01/01- 11/30/02 05/31/02 ---------- ---------- Trust Shares: Shares Issued ............................... 512 948 Shares Issued in Lieu of Cash Distributions ........................ 11 714 Shares Redeemed (705) (1,061) ------- -------- Net Trust Share Transactions .................. (186) (99) ------- -------- Investor Shares: Shares Issued ............................... -- -- Shares Issued in Lieu of Cash Distributions . 18 -- Shares Redeemed ............................. -- -- ------- -------- Net Investor Share Transactions ............... -- -- ------- -------- Flex Shares: Shares Issued ............................... 275 722 Shares Issued in Lieu of Cash Distributions . 12 22 Shares Redeemed ............................. (158) (241) ------- -------- Net Flex Share Transactions ................... 129 503 ------- -------- Net Change in Capital Shares .................. (57) 404 ======= ========
61 NOTES TO FINANCIAL STATEMENTS (concluded) - -------------------------------------------------------------------------------- STI CLASSIC FIXED INCOME FUNDS NOVEMBER 30, 2002 (UNAUDITED) 10. Concentration of Credit Risk: The Investment Grade Bond Fund and the Short-Term Bond Fund invest primarily in investment grade obligations rated at least BBB or better by S&P or Baa or better by Moody's or, if not rated, are determined by the investment adviser to be of comparable quality. The Investment Grade Tax-Exempt Bond Fund invests primarily in investment grade municipal securities. Municipal securities must be rated BBB or better by S&P or Baa or better by Moody's in the case of bonds; SP-1, SP-2 or MIG-1, MIG-2 in the case of notes; A-1, A-2 or P-1, P-2 in the case of commercial paper; and VMIG-1, VMIG-2 in the case of variable rate demand obligations. The Short-Term U.S. Treasury Securities Fund invests exclusively in obligations issued by the U.S. Treasury with a maximum remaining maturity of 3 years or less. The Florida Tax-Exempt Bond Fund, the Georgia Tax-Exempt Bond Fund, the Maryland Municipal Bond Fund, the Virginia Intermediate Municipal Bond Fund, and the Virginia Municipal Bond Fund invest primarily in municipal bonds concentrated in each of their respective states. Municipal securities must be rated BBB or better by S&P or Baa or better by Moody's in the case of bonds; A-1, A-2 or P-1, P-2 in the case of tax-exempt commercial paper; and VMIG-1, VMIG-2 in the case of variable rate demand obligations. The U.S. Government Securities Fund invests primarily in obligations issued or guaranteed by the U.S. Government or its agencies or instrumentalities, including mortgage backed securities. The Limited-Term Federal Mortgage Securities Fund invests in mortgage-related securities issued or guaranteed by U.S. Government agencies. Up to 35% of the U.S. Government Securities Fund and the Limited-Term Federal Mortgage Securities Fund may be invested in corporate, or government bonds that carry a rating of BBB or better by S&P or Baa or better by Moody's. The ability of the issuers of the securities held by the Funds to meet their obligations may be affected by economic developments in a specific industry, state or region, or by changing business conditions. The High Income Fund and the Strategic Income Fund invest in high yield instruments and are subject to certain credit and market risks. The yields of high debt obligations reflect, among other things, perceived credit risk. The Funds' investment in securities rated below investment grade typically involves risks not associated with higher rated securities including, among others, greater risks of timely and ultimate payment of interest and principal, greater market price volatility and less liquid secondary market trading. 11. 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, sub-adviser or their 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 a 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: MARKET VALUE MARKET VALUE OF SECURITIES LOANED OF COLLATERAL (000) (000) -------------------- -------------- High Income Fund ...................... $ 9,215 $ 9,750 Investment Grade Bond Fund ............ 72,436 74,675 Limited-Term Federal Mortgage Securities Fund ..................... 4,858 4,989 Short-Term Bond Fund .................. 71,716 75,369 U.S. Government Securities Fund ....... 8,891 9,131 * 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. 12. Subsequent Event: On January 13, 2003, the Board of Trustees appointed Brown Brothers Harriman & Co. to serve as global custodian to the STI Classic Strategic Income Fund. 62 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-003-0300 -----END PRIVACY-ENHANCED MESSAGE-----