-----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, FnUlhwJmGQ7LpuWhJBT72o8afHu0fKWaNlfy2xZjxybyCJxZv3Fc3WETbI4s4bK2 IevUwdqGVbsZjHOOGxtmqg== 0000935069-03-001037.txt : 20030806 0000935069-03-001037.hdr.sgml : 20030806 20030806161740 ACCESSION NUMBER: 0000935069-03-001037 CONFORMED SUBMISSION TYPE: N-CSR PUBLIC DOCUMENT COUNT: 5 CONFORMED PERIOD OF REPORT: 20030531 FILED AS OF DATE: 20030806 EFFECTIVENESS DATE: 20030806 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-CSR SEC ACT: 1940 Act SEC FILE NUMBER: 811-06557 FILM NUMBER: 03826433 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-CSR 1 sticlassequityar_503.txt STI CLASSIC EQUITY NCSR052003 UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 -------- FORM N-CSR -------- CERTIFIED SHAREHOLDER REPORT OF REGISTERED MANAGEMENT INVESTMENT COMPANIES INVESTMENT COMPANY ACT FILE NUMBER 811-6557 STI CLASSIC FUNDS -------- 2 Oliver Street Boston, MA 02109 (Address of principal executive offices) (Zip code) Trusco Capital Management, Inc. 50 Hurt Plaza; Suite 1400 Atlanta, Georgia 30303 (Name and address of agent for service) REGISTRANT'S TELEPHONE NUMBER, INCLUDING AREA CODE: 1-800-428-6970 DATE OF FISCAL YEAR END: MAY 31, 2003 DATE OF REPORTING PERIOD: MAY 31, 2003 ITEM 1. REPORTS TO STOCKHOLDERS. [GRAPHIC OMITTED] ANNUAL ........................................... FINANCIAL REPORT ........................................... STI CLASSIC EQUITY FUNDS ........................................... A Family of Mutual Funds ........................................... May 31, 2003 [Sti Classic LOGO OMITTED] BACKED BY TRADITION. STRENGTHENED BY EXPERIENCE.(SM) Dear Valued STI Classic Funds' Shareholder: For investors, the year ending May 31, 2003 saw convergence in equity returns, and divergence of returns in stocks versus bonds. Specifically, while stocks continued to labor under the weight of the late 1990's technology stock bubble, various types of stocks had remarkably similar returns. The S&P 500 Index was down -8.1%, with its Growth and Value components similar at -7.6% and -8.7%, respectively. The Dow Jones Industrial Average was -8.7%. The S&P 400 Midcap Index was -9.1%, while the S&P 600 Smallcap fell -10.9%. This convergence followed two years in which value stocks had significantly outperformed growth, and small/midcaps were similarly better than large caps. One area of difference was the relatively weaker performance of international stocks, with the MSCI EAFE Index of major country stocks -12.3%. This result was driven by poor returns from Japan (-24.6%), while the balance of industrialized countries had returns only slightly worse than the U.S. The benefits of asset diversification were clearly evident over the past year, as bond returns were quite exceptional relative to stocks and compared to longer term history. For example, the Lehman Aggregate Bond Index returned 11.6%, and similar returns were seen in the Lehman Intermediate U.S. Government/Credit (+11.9%) and High Yield (+10.5%) indices. Strong returns in bonds were driven by several factors, including: further reduction in short-term rates by the Federal Reserve; continued minimal price inflation; in the second half of the year, major improvement in corporate bond quality spreads vs. Treasuries; positive asset flows into bond mutual funds; and some aspects of flight to quality in the Treasury bond market. In terms of return, investors who stayed in short term money market instruments preserved capital with a positive return of about 1.1% per the iMoneyNet money market average, but this was meager relative to total returns available in longer maturities. The current investment environment appears to be one of moderation. The late 1990's equity bubble which led to excesses and ultimately suboptimal capital allocation on the part of both corporate managements and investors is long over. The ensuing bear market which purged those excesses also now seems to be finally over. The stock market has gained a better tone, after making three decisive lows in the 775-800 range on the S&P 500 Index in July and October 2002, and March 2003. Economic growth has been very slow to recover, since consumer spending did not fall much in the recession and capital spending is still limping along. However, ample monetary liquidity, the lowest interest rates in over 40 years, some tax incentives and fiscal stimulus, the eventual benefits from a lower dollar exchange rate and improving consumer/business confidence all argue for continued positive economic growth and not another recession. Stock prices ultimately track profits growth, and the trajectory of profits is now positive. Investors in stocks can reasonably anticipate moderate gains but need to be selective and price sensitive in security selection. A new stock market boom is unlikely, rather, we anticipate a gradual recovery. The outlook for bond investors in terms of absolute returns is a bit more challenging. Since bond prices move inversely to interest rates, the current low level of yields by definition reduces the opportunity for continued above average returns. Measured since January 1981, the Lehman Long-Term Treasury Index returned 12.0% annualized through May 31, 2003, while the S&P 500 total return was 12.6%. Such convergence is rare in capital markets, and needs to be understood in the context of 30-year Treasury bonds reaching yields of over 15% in 1981, versus only a little over 4% today. Similarly, we do not expect deflation, which would benefit Treasury bonds, but rather a gradual rise in inflation as economic stimulus takes hold. For those reasons, we currently favor stocks over bonds in terms of asset allocation, and within bonds, higher yielding corporates over Treasuries. However, adherence to investment disciplines and greater price sensitivity on stocks will be much more important in the next several years, particularly if there is a meaningful rise in interest rates. The cornerstone of our investment philosophy is diversification and execution of the disciplined investment process by experienced investment professionals. The balance of this Annual Report includes performance data for the STI Classic Equity Funds as well as each portfolio manager's discussion of the 12-month results. We believe you will find this communication helpful and thank you for your continued confidence in the STI Classic Equity Funds. Sincerely, /s/Douglas S. Phillips Douglas S. Phillips, CFA Chief Investment Officer 1 STI CLASSIC BALANCED FUND ------------------------- The STI Classic Balanced Fund ("the Fund") seeks to provide both current income and growth in capital by investing in a blend of investment grade bonds and large and midcap common stocks. Typically the Fund's asset allocation to bonds is 40% to 50% of the total portfolio, while common stocks are the balance, or 50% to 60% of assets. In this manner, the goal is to provide shareholders with an attractive and somewhat less volatile total investment return over longer time periods. Total return is defined as the current income from interest or dividends as well as changes in the value of assets held in the portfolio. Bonds and stocks went in opposite directions for the year ended May 31, 2003. Stocks, as measured by the S&P 500 Index, returned -8.1%. Only minor variation was seen in the returns of Growth vs. Value or Large Cap vs. Small Cap stocks. Bonds, measured by the Lehman Intermediate U.S. Government/Credit Index, returned +11.9% for the year. Thus, for investors in a blend of these two assets, it was a satisfactory year in terms of capital presentation, albeit unexciting in the context of capital growth. What caused these divergent returns between stocks and bonds? For stocks, investors were faced with the continued aftermath of unwinding a major bull market which peaked in March 2000. Equity values had gone to extremes not justified by underlying earnings. This process of stripping away excesses inevitably uncovered weaknesses in corporate accounting and governance, as well as in the quality of Wall Street analysis. These shortcomings severely impacted investor confidence in the integrity of basic financial processes. Thus, even though the Fed was cutting interest rates and business conditions were gradually improving, stock valuations remained under pressure. Bonds, and especially higher quality, longer maturity bonds, did very well for several reasons. The economy recovered, but only slowly. Inflation remained quiescent. The Federal Reserve continued to provide liquidity and lower short term rates. Finally, investors exhibited strong aversion to the perceived volatility risk of common stocks, and poured huge sums into bond investments. These factors caused short and medium term interest rates to drop by 2 to 2 1/2 percentage points, a major decline within the twelve month period. Since bond prices perform inversely to the direction of interest rates, bond investors saw attractive price appreciation. Within this mixed environment, the Fund (Trust Shares) produced a total return for the year of -0.14%. As in the case of the overall market, the Fund's equity holdings provided negative returns, while the bond investments had attractive positive returns, with the blend roughly canceling out. The Fund's Trust Shares, net of fees, performed approximately in line with its blended index benchmark, which is 60% S&P 500 Index for stocks and 40% Lehman Intermediate U.S. Government/Credit Index for bonds. The Fund did well vs. peers however, as its - -0.14% return was considerably better than the -2.28% posted by the Lipper Balanced Fund average. In terms of performance attribution, the Fund's equity positions modestly trailed the S&P 500, primarily due to ineffective stock selection within the Information Technology sector. In its bond portfolio, the Fund was helped by an emphasis on corporate bonds, which saw significantly better returns in the last six months. Also, the Fund's concentration on the intermediate segment of bond maturities was beneficial. Looking ahead, the low absolute level of interest rates has diminished the total return potential of bonds. Low interest rates, monetary ease, a gradual pickup in economic growth, and a weaker dollar exchange rate all tend to enhance the return prospects for stocks. Accordingly, the Fund is maintaining a meaningful exposure to equities with emphasis on companies showing improving earnings. On the bond side, maturities have been shortened somewhat as a hedge against eventual higher interest rates, while an overweight in corporate bonds which provide higher yields than Treasuries is being maintained. /s/L. Earl Denney L. Earl Denney, CFA Fixed Income Portfolio Manager /s/Robert J. Rhodes Robert J. Rhodes, CFA Equity Portfolio Manager 2 TRUST SHARES AVERAGE ANNUAL TOTAL RETURNS (PERIODS ENDED MAY 31, 2003) - --------------------------------------------------------------------------- Annualized Cumulative Inception Inception One Year 3 Years 5 Years to Date to Date - --------------------------------------------------------------------------- - -0.14% -0.10% 3.05% 8.06% 107.32% - --------------------------------------------------------------------------- [Chart Omitted] [Plot Points follow]
COMPARISON OF CHANGE IN THE VALUE OF A $10,000 INVESTMENT STI Classic Lehman U.S. Balanced Fund, S&P 500 Government/ Trust Shares 60/40 Hybrid: Index Credit Index 1/31/94 10,000 10,000 10,000 10,000 5/94 9,554 9,527 9,579 9,446 5/95 10,387 11,121 11,510 10,543 5/96 12,180 13,142 14,781 10,975 5/97 14,210 15,844 19,126 11,842 5/98 17,357 19,474 24,992 13,202 5/99 19,263 22,323 30,253 13,738 5/00 20,230 23,946 33,424 13,997 5/01 20,885 23,620 29,898 15,799 5/02 20,198 22,361 25,757 17,037 5/03 20,170 22,614 23,681 19,518
INVESTOR SHARES AVERAGE ANNUAL TOTAL RETURNS (PERIODS ENDED MAY 31, 2003)
- --------------------------------------------------------------------------- Annualized Cumulative Inception Inception One Year 3 Years 5 Years to Date to Date - --------------------------------------------------------------------------- - -0.54% -0.43% 2.72% 7.68% 100.53% Without load - --------------------------------------------------------------------------- - -4.29% -1.69% 1.94% 7.24% 93.01% With load - ---------------------------------------------------------------------------
[Chart Omitted] [Plot Points follow] COMPARISON OF CHANGE IN THE VALUE OF A $10,000 INVESTMENT STI Classic Lehman U.S. Balanced Fund, S&P 500 Government/ Investor Shares 60/40 Hybrid: Index Credit Index 1/31/94 9,625 10,000 10,000 10,000 5/94 9,238 9,527 9,579 9,446 5/95 10,004 11,121 11,510 10,543 5/96 11,693 13,142 14,781 10,975 5/97 13,595 15,844 19,126 11,842 5/98 16,548 19,474 24,992 13,202 5/99 18,319 22,323 30,253 13,738 5/00 19,173 23,946 33,424 13,997 5/01 19,731 23,620 29,898 15,799 5/02 19,026 22,361 25,757 17,037 5/03 18,294 22,614 23,681 19,518
FLEX SHARES AVERAGE ANNUAL TOTAL RETURNS (PERIODS ENDED MAY 31, 2003) - --------------------------------------------------------------------------- Annualized Cumulative Inception Inception One Year 3 Years 5 Years to Date to Date - --------------------------------------------------------------------------- - -1.15% -1.16% 1.96% 7.42% 76.77% Without CDSC - -------- - -3.11% With CDSC
[Chart Omitted] [Plot Points follow] COMPARISON OF CHANGE IN THE VALUE OF A $10,000 INVESTMENT STI Classic Lehman U.S. Balanced Fund, S&P 500 Government/ Flex Shares 60/40 S&P 500 Index Credit Index 6/30/95 10,000 10,000 10,000 10,000 5/96 11,401 11,617 12,549 10,327 5/97 13,157 14,006 16,239 11,143 5/98 15,900 17,215 21,219 12,422 5/99 17,465 19,733 26,686 12,927 5/00 18,142 21,168 28,378 13,171 5/01 18,525 20,880 25,384 14,866 5/02 17,723 19,767 21,868 16,032 5/03 17,519 19,990 20,106 18,366
Past performance is no indication of future performance. The Funds' comparative benchmarks do not include the annual operating expenses incurred by the Fund. Returns shown do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares. 3 STI CLASSIC CAPITAL APPRECIATION FUND ------------------------------------- The STI Classic Capital Appreciation Fund ("the Fund") employs a philosophy of investing in large and midcap companies with positive earnings trends and reasonable valuations. Earnings trend criteria include a stable or improving rate of earnings growth, positive growth relative to investor expectations, and fundamental signs of growth sustainability. Other important elements considered are above average or rising profitability metrics such as return on equity, stable or improving revenue growth, and good quality of earnings. Generally companies in which the Fund invests represent leaders within their industry segments, as demonstrated by revenue growth, market shares, and levels of profitability. In terms of portfolio risk control, the Fund is structured to provide diversification across the major industry sectors, but with an emphasis on good earnings growth. Finally, the Fund manager employs an active sell discipline to weed out stocks with deteriorating earnings profiles, while striving to keep annual portfolio turnover within reasonable ranges. The equity market, as measured by the Standard & Poor's S&P 500 Index, remained in a downward trend during the 12 months ended May 31, 2003. The index began the year at 1067, and ended 9.7% lower at about 964. When dividends are included, the total return for the index was -8.1%. Price activity was volatile and three significant price pullbacks occurred during the year. The market retreated to around 800 in July 2002, driven down by economic concerns, and earnings worries. Also investor confidence was poor regarding the soundness of corporate governance due malfeasance at a few very visible companies. After a quick 20% rebound in August, the market retreated to a new low in October, again mostly due to economic concerns as well as disarray in the corporate bond market. A 22% price rebound followed, helped by another interest rate cut by the Federal Reserve. Then the market fell back again to around 800 as investors contemplated risks related to the economy and oil prices based on the looming conflict with Iraq. After the war was concluded on a relatively short and successful basis, consumer confidence rebounded somewhat, the corporate bond market recovered, and interest rates on the bellwether Treasury bond sector fell to new lows for the cycle. Thus, by the end of May, the S&P 500 had staged yet another 20% recovery, the third within just 12 months. Amidst all this volatility in the broad equity market, stock performance at the industry sector level was quite erratic. At times, stable, high quality stocks led the way. But during the fall of 2002, previously downtrodden sectors with weak fundamentals staged sharp recoveries. This pattern of erratic sector performance continued into the new year, with economically sensitive as well as more stable defensive industries sometimes doing well or poorly in tandem in any given month. Overall, the year reflected a continuation of a cyclical bear market which began in March 2000. Given the magnitude and duration of the bear market, investors became progressively less confident in company managements, Wall Street research, and other entities such as auditing firms. One result has been the lack of sustainable investment trends such as seen over the last year. Thus, neither Growth nor Value styles consistently led, and industry patterns of performance, as discussed above, fluctuated. We attribute this to an absence of clear earnings leadership given the sluggish global economy. Also, with so many crosscurrents, investors have a lack of conviction about where to invest, which has produced a pattern of short-term sector rotation as opposed to sustained leadership. Against this backdrop, the Fund produced a modestly disappointing result. For the 12 months ended May 31, 2003, the Fund returned -9.97% (Trust Shares), compared to -8.1% for the Fund's benchmark index of S&P 500 Index. Analysis of performance reveals that subpar stock selection in Information Technology, and to a lesser extent, Healthcare, were the culprits. On the positive side, stock selection and sector weights were very good in the Consumer and Energy sectors. Stock selection was also favorable in Financial and Industrial stocks. Finally, the Fund correctly had no exposure to the poorly performing Telecomm and Utility sectors. In terms of positioning, a few shifts have been made over the last 12 months. Most notably the Energy weight in the Fund has doubled from 4% to 8%. Energy stocks have excellent relative earnings visibility due to stubbornly high commodity prices and favorable demand/supply. Exposure to the Consumer sector was raised about 3 percentage points. While we believe consumer spending will remain fairly slow, we continue to find companies which are executing well and growing strongly even in this tough environment. The Healthcare weight was also revised about 3 percentage points. This sector has the best earnings visibility, after Energy, in an economy which is still beset with over capacity and weak pricing in many areas. On the de-emphasis side, Fund commitment to the Industrial sector was sharply reduced. The impetus here was erosion in our discipline bottoms-up earnings process for Industrial stocks. Also reduced was exposure to Information Technology, where top line growth remains largely elusive, while the share prices have moved up dramatically in many cases. Going forward, we want to emphasize to our shareholders that it is "business as usual" in terms of the Fund's investment process. We try to identify companies with improving earnings trends and reasonable valuation. Our analyst team does extensive fundamental analysis on new investment candidates. And then each stock is closely monitored after purchase. We appreciate your confidence in the Fund, and will work hard to produce competitive results. /s/Robert J. Rhodes Robert J. Rhodes, CFA Portfolio Manager 4
TRUST SHARES AVERAGE ANNUAL TOTAL RETURNS (PERIODS ENDED MAY 31, 2003) - ------------------------------------------------------------------------------------------ Annualized Cumulative Inception Inception One Year 3 Years 5 Years 10 Years to Date to Date - ------------------------------------------------------------------------------------------ - -9.97% -8.31% -0.21% 8.60% 9.36% 165.60% - ------------------------------------------------------------------------------------------
[Chart Omitted] [Plot Points follow] COMPARISON OF CHANGE IN THE VALUE OF A $10,000 INVESTMENT STI Classic Capital Appreciation Fund, S&P 500 Trust Shares Index 5/31/93 10,000 10,000 5/94 10,388 10,423 5/95 11,077 12,523 5/96 14,286 16,082 5/97 17,808 20,811 5/98 23,064 27,193 5/99 27,176 32,917 5/00 29,616 36,367 5/01 28,509 32,530 5/02 25,356 28,025 5/03 22,828 25,766
INVESTOR SHARES AVERAGE ANNUAL TOTAL RETURNS (PERIODS ENDED MAY 31, 2002) - ------------------------------------------------------------------------------------------ Annualized Cumulative Inception Inception One Year 3 Years 5 Years 10 Years to Date to Date - ------------------------------------------------------------------------------------------ - -10.60% -8.94% -0.85 7.90% 8.97% 156.60% Without load - ------------------------------------------------------------------------------------------ - -13.93% -10.09% -1.60 7.50% 8.59% 146.97% With load - ------------------------------------------------------------------------------------------
[Chart Omitted] [Plot Points follow] COMPARISON OF CHANGE IN THE VALUE OF A $10,000 INVESTMENT STI Classic Capital Appreciation Fund, S&P 500 Investor Shares Index 5/31/93 9,625 10,000 5/94 9,939 10,423 5/95 10,528 12,523 5/96 13,495 16,082 5/97 16,699 20,811 5/98 21,493 27,193 5/99 25,190 32,917 5/00 27,278 36,367 5/01 26,083 32,530 5/02 23,037 28,025 5/03 20,595 25,766
FLEX SHARES AVERAGE ANNUAL TOTAL RETURNS (PERIODS ENDED MAY 31, 2003) - -------------------------------------------------------------------------------- Annualized Cumulative Inception Inception One Year 3 Years 5 Years to Date to Date - -------------------------------------------------------------------------------- - -10.96% -9.32% -1.31% 8.24% 88.43% Without CDSC - -------------------------------------------------------------------------------- - -12.75% With CDSC - -------
[Chart Omitted] [Plot Points follow] COMPARISON OF CHANGE IN THE VALUE OF A $10,000 INVESTMENT STI Classic Capital Appreciation Fund, S&P 500 Flex Shares Index 6/30/95 10,000 10,000 5/96 12,387 12,549 5/97 15,266 16,239 5/98 19,559 21,219 5/99 22,786 25,686 5/00 24,557 28,378 5/01 23,380 25,384 5/02 20,563 21,868 5/03 18,309 20,106 Past performance is no indication of future performance. The Funds' comparative benchmarks do not include the annual operating expenses incurred by the Fund. Returns shown do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares. 5 STI CLASSIC GROWTH AND INCOME FUND ---------------------------------- The STI Classic Growth and Income Fund (the "Fund") invests primarily in a diversified mix of midsize and larger domestic common stocks and listed ADRs of foreign companies with market capitalizations of at least $1.5 billion. The Fund is managed in a large capitalization, value-oriented style, competing against funds with a similar objective as categorized under Lipper's "Large Cap Value Equity" peer group. The Fund's management team utilizes a proprietary quantitative screening process to identify attractive ideas. The team then evaluates each potential idea with careful fundamental research, incorporating the depth of its collective investment experience, and constructs a diversified portfolio that seeks competitive long-term appreciation with below average variability of return. This time last year, we wrote of the need to restore basic confidence and trust - - in the recovery potential of the US economy and in its capital markets - as a prerequisite to better times for equity investors. In our view, the backdrop was constructive although we expected progress to be both slow and uneven. Between then and now, circumstances first spiraled lower into last summer's abyss of corporate malfeasance, economic stall, and mounting Middle East geopolitical tensions which together triggered a mass exodus out of an already weak equity market. The stock market staged an impressive comeback during the fourth quarter of 2002 before swooning into the winter of investor's discontent, punctuated by the overhangs of the Iraqi showdown and conflict, the near hysterical fears of terrorist retribution domestically, disruptive weather patterns that crippled a broad swath of the economy during February as America geared up for war. The stock market demonstrated its time tested resiliency in holding through the nadir reached in early March, then springing back with enormous power and breadth into the May 31 year end of the Fund. Quick resolution on the military aspect of the Iraqi conflict, better weather, better corporate profit reports, continued monetary and fiscal stimuli, including the just passed tax cut, interest rates falling to 40 year lows, and belief that the ugly blackeye of corporate malfeasance was healing all turned the tide back in favor of equities. Equities also enjoyed one of the most powerful boosts from market bears who, having overstayed their pessimism in creating a massive short position (an investment strategy that seeks to profit from falling price levels) were sent into a frantic scramble to cover those short positions as equity prices began to gather steam. Put together, equities finished the fiscal year lower than when they started the year, but it clearly could have been a lot worse and it does appear that the market is in a sustainable rebuilding mode. For the twelve months ending May, the S&P 500 declined (8.1%) while our primary benchmark, the S&P 500/Barra Value Index declined (8.7%). By comparison, the Fund incurred losses of -10.58%, - -10.74% and -11.41% for the Trust, Investor, and Flex Shares respectively. Over the past year, the Fund maintained a modestly greater procyclical exposure with overweights in Industrials and Technology, and counterbalancing overweights in Healthcare and Consumer Staples. Conversely, the Fund has been significantly underweighted in Financials - with about a quarter of the portfolio committed there vs. the benchmark exposure of over 35%. We have noted on several occasions that we do not believe that the longer term fundamentals and valuations warrant that high a degree of exposure to Financials so instead have fashioned greater diversification across the Fund. That decision penalized comparative results in the fiscal year, as Financial stocks generally declined less than the index. Also, the year's series of events, recapped above, have inhibited the slow economic thaw and recovery in job creation, inventory rebuilding, and capital spending, which in turn has stymied consistent outperformance of the economically sensitive sectors. Overall, stock selection has been neutral with better relative performance from Staples, Energy, Financials, Healthcare and Materials, equivalent performance from Industrials, and weaker relative performance from Consumer spending, Technology, Utilities, and Telecommunications. The underperformance of the Fund can be largely isolated to the period of the last two months - April and May - and is a transient outcome of the character of this recent market rally. The rally phase has been driven by smaller stocks and lower quality issues in some of the most depressed areas of the market. Certainly, some of this action supports brightening investor and consumer confidence, as well as more sanguine expectations. As is typical, expectations race ahead of fundamental confirmation in the early stages of a market advance, but that gap also creates potential future disappointment risk if ultimate fundamental improvement does not measure up to these freshly elevated expectations. Curiously, those areas of the market most sensitive to any economic improvement now reflect the most investor skepticism and have not rallied as strongly. Higher quality and larger multinational issues also have experienced less rebound so far. The marked outperformance of lower quality issues appears to have gotten a high octane jumpstart from the short covering phenomenon mentioned above. Since shorting has become so prevalent and often occurs in the most depressed or financially vulnerable companies, it's no coincidence that in the past two months performance has been led by the lowest quality issues and trailed by the highest quality issues. Two of the primary attributes of the Fund; broad sector diversification across higher quality issues, and greater exposure to economically sensitive sectors, were the antithesis of what has led this rally. 6 As the market continues to rebuild and economic thaw trickles up into clearer signs of broader recovery, we believe that the equity market has room for additional gains despite moderate profit growth. We are much happier with the Fund's structure and prospects in this environment than with the relative performance it has generated over the past two months. We continue to weed out names that have gotten off track or whose investment thesis has broken and are replacing them with fresher, stronger opportunities. Our basic criteria has been and remains to focus on specific companies that can benefit from modest economic improvement, have significant self-help actions in place to leverage that recovery, and stock valuations that reflect current skepticism by the consensus investor. While we have been pleasantly surprised by the sheer rapidity of the market rebound, we remain confident that some of the more technical and transient factors that have provided short term fuel will cede to the inevitable emergence and confirmation in the fundamentals. The equity market clearly has improved, the economy appears on track to deliver cyclical improvement, and we believe the Fund is positioned to capture much better relative performance from these sustainable trends in the fiscal year ahead. We reaffirm our concluding comment from last year's report that at the end of the day, the patient, disciplined investor is always best served. We know all too well that in any shorter time interval, market noise or buzz can challenge or contradict investment discipline, but will strive to tune out this noise and tune in to opportunities that noise creates. On behalf of the Growth and Income team, I thank our investors for the vote of confidence in our approach. /s/Jeffrey E. Markunas Jeffrey E. Markunas, CFA Portfolio Manager 7
TRUST SHARES AVERAGE ANNUAL TOTAL RETURNS (PERIODS ENDED MAY 31, 2003) - ------------------------------------------------------------------------------------------ Annualized Cumulative Inception Inception One Year 3 Years 5 Years 10 Years to Date to Date - ------------------------------------------------------------------------------------------ - -10.58% -6.20% -0.14% 8.30% 9.16% 154,85% - ------------------------------------------------------------------------------------------
[Chart Omitted] [Plot Points follow] COMPARISON OF CHANGE IN THE VALUE OF A $10,000 INVESTMENT STI Classic Growth S&P 500/ and Income Fund, BARRA Value Trust Shares Index 5/31/93 10,000 10,000 5/94 10,087 10,744 5/95 11,620 12,578 5/96 14,450 15,892 5/97 17,662 19,938 5/98 22,358 25,705 5/99 25,842 29,069 5/00 26,904 29,819 5/01 26,933 31,946 5/02 24,833 27,023 5/03 22,205 24,674
INVESTOR SHARES AVERAGE ANNUAL TOTAL RETURNS (PERIODS ENDED MAY 31, 2003) - ------------------------------------------------------------------------------------------ Annualized Cumulative Inception Inception One Year 3 Years 5 Years 10 Years to Date to Date - ------------------------------------------------------------------------------------------ - -10.74% -6.37% -0.27% 8.23 8.48% 126.85% Without load - ------------------------------------------------------------------------------------------ - -14.08% -7.55% -1.03% 7.82 8.07% 118.35% With load - -------------------------------------------------------------------------------------------
[Chart Omitted] [Plot Points follow] COMPARISON OF CHANGE IN THE VALUE OF A $10,000 INVESTMENT STI Classic Growth S&P 500/ and Income Fund, BARRA Value Investor Shares Index 5/31/93 9,625 10,000 5/94 9,711 10,744 5/95 11,189 12,578 5/96 13,908 15,892 5/97 17,003 19,938 5/98 21,505 25,705 5/99 24,873 29,069 5/00 25,848 29,819 5/01 25,830 31,946 5/02 23,771 27,023 5/03 21,218 24,674
FLEX SHARES AVERAGE ANNUAL TOTAL RETURNS (PERIODS ENDED MAY 31, 2003) - -------------------------------------------------------------------------------- Annualized Cumulative Inception Inception One Year 3 Years 5 Years to Date to Date - -------------------------------------------------------------------------------- - -11.41% -7.06% -1.02% 7.97% 86.80% Without CDSC - -------------------------------------------------------------------------------- - -13.18% With CDSC - -------
[Chart Omitted] [Plot Points follow] COMPARISON OF CHANGE IN THE VALUE OF A $10,000 INVESTMENT STI Classic Growth S&P 500/ and Income Fund, BARRA Value Flex Shares Index 4/30/95 10,000 10,000 5/95 10,293 10,445 5/96 12,721 13,197 5/97 15,440 16,557 5/98 19,403 21,346 5/99 22,267 24,140 5/00 22,959 24,763 5/01 22,783 26,528 5/02 20,803 22,440 5/03 18,429 20,490 Past performance is no indication of future performance. The Funds' comparative benchmarks do not include the annual operating expenses incurred by the Fund. Returns shown do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares. 8 This page left intentionally blank. STI CLASSIC INFORMATION AND TECHNOLOGY FUND ------------------------------------------- The STI Classic Information and Technology Fund ("the Fund") seeks long-term capital appreciation by investing primarily in U.S. companies that are expected to benefit substantially from information & technology and achieve above average growth. The Fund has a three-tiered investment structure that it uses to classify holdings into one of the following three categories: pioneers, technology infrastructure companies, or information beneficiaries. The first category, pioneers, includes firms whose primary line of business focuses on an emerging technology product or information-intensive service. The second category, infrastructure companies, consists of established firms that provide infrastructure to support the electronic construction and transfer of information. The third category of companies encompasses established firms that harness information as a key driver of growth in their businesses. This three-tiered investment strategy helps the Fund to diversify its holdings and produce a superior risk-reward profile to those exhibited by pure technology funds. The Fund believes that a carefully constructed, well-diversified portfolio is an extremely effective tool for investing in technology companies and information-intensive businesses. This philosophy has proven to be very helpful for technology and aggressive growth investors during the volatile period of the last three years. The Fund uses bottom-up analysis in which the competitive advantages of companies are examined. In addition, the Fund considers each position in the context of industry, economic and financial market trends. Finally, each position is assessed for its ability to optimize the portfolio's balance between risk and potential reward. The information technology and telecom equity markets have been characterized by frequent directional reverses during the past year. Whereas the boom-bust atmosphere of previous years created dramatic up and down stock movements, today's choppy environment is leading to more irregular price patterns. The shift to a choppy environment is in large part a reflection of a more mixed outlook for information technology and telecom companies. On the negative side, these firms continue to be plagued by the same problems experienced during the bursting of the tech bubble. Their industries face significant excess capacity. They lack new, "must-have" products that can stimulate broad-based demand. Customers maintain a suspicious attitude on technology's return-on-investment potential. Barriers to exit prevent the group from reducing supply. And stock valuations continue to appear rich. On the positive side, investors believe that expectations are finally more in sync with reality and that earnings could actually surprise to the upside if the U.S. economy were to experience a meaningful rebound. In recent months, the rate of downward earnings estimate revisions for tech and telecom has been considered modest. In some cases, estimate revision trends have even been superior to other sectors of the market. In addition, tech and telecom companies have cut significant costs, providing optimism that earnings are poised to expand significantly. Finally, many investors who are anticipating U.S. economic improvement are using technology stocks as a means of adding juice to their portfolios, even though the link right now between economic growth and end market demand for tech and telecom is questionable. The Fund underperformed the Goldman Sachs Technology Composite in the past twelve months due to poor execution. The mixed investment drivers mentioned above reduced the Fund's ability to develop consistent, effective strategies. The Fund's performance was also negatively impacted by the Fund's relative weights in certain sectors and industries. The Fund held few Internet-related stocks, many of which rebounded sharply during the past year. A quicker-than-expected stabilization in Internet company fundamentals and a willingness among investors to embrace rich valuations sent Internet shares higher than the Fund anticipated. The Fund's performance was also dampened by poor stock selection in non-tech, information-related industries, such as health care and financial services. Although end market demand for these industries has appeared more stable than the technology sector, expectations for many of these companies needed to be reset considerably lower. While the past year's relative performance was disappointing, we do not anticipate the highly challenging investment environment to be repeated in the next twelve months. Accordingly, we are optimistic about the prospects for superior stock selection during the next year. /s/Alan Kelley Alan Kelley Portfolio Manager 10 TRUST SHARES(1) AVERAGE ANNUAL TOTAL RETURNS (PERIODS ENDED MAY 31, 2003) - ----------------------------------------------------------- Annualized Cumulative Inception Inception One Year 3 Years to Date to Date - ----------------------------------------------------------- - -24.69% -27.41% -23.73% -39.30% - ----------------------------------------------------------- [Chart Omitted] [Plot Points follow] COMPARISON OF CHANGE IN THE VALUE OF A $10,000 INVESTMENT STI Classic Goldman Sachs Information and Technology Lipper Science & Tecnhnology Fund, Composite Technology Trust Shares Index Funds Objective 9/30/99 10,000 10,000 10,000 5/00 15,870 13,356 15,010 5/01 13,340 7,311 8,625 5/02 8,060 4,920 5,505 5/03 6,070 4,600 5,067 FLEX SHARES(2) AVERAGE ANNUAL TOTAL RETURNS (PERIODS ENDED MAY 31, 2003) - ----------------------------------------------------------- Annualized Cumulative Inception Inception One Year 3 Years to Date to Date - ----------------------------------------------------------- - -25.45% -28.17% -13.55% -41.37% Without CDSC - ----------------------------------------------------------- - -26.94% With CDSC - ------- [Chart Omitted] [Plot Points follow] COMPARISON OF CHANGE IN THE VALUE OF A $10,000 INVESTMENT STI Classic Goldman Sachs Information and Technology Lipper Science & Tecnhnology Fund, Composite Technology Flex Shares Index Funds Objective 9/30/99 10,000 10,000 10,000 5/00 15,818 13,356 15,010 5/01 13,157 7,311 8,625 5/02 7,864 4,920 5,505 5/03 5,863 4,600 5,067 Past performance is no indication of future performance. The Funds' comparative benchmarks do not include the annual operating expenses incurred by the Fund. (1) Trust Shares were offered beginning on September 30, 1999. (2) Flex Shares were offered beginning on January 24, 2000. Flex Shares' performance for the periods prior to January 24, 2000 reflects the performance of the Fund's Trust Shares. The performance of the Trust Shares has not been adjusted to reflect the higher internal operating expenses of the Flex Shares. If it had, performance would have been lower than that shown. Returns shown do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares. 11 STI CLASSIC INTERNATIONAL EQUITY FUND ------------------------------------- The STI Classic International Equity Fund (the "Fund") invests in equity securities of foreign issuers and seeks to provide long-term capital appreciation. We strive to obtain investment results that outperform the international markets as measured by the MSCI EAFE Index. The Fund focuses on sector and company fundamentals specifically looking for companies that are leaders in their industry, produce quality products, and have sound financial positions. Our goal is to find companies that have improving growth characteristics at attractive valuation levels relative to their global peers. The Fund's performance for the year ended May 31, 2003 was -13.4% (Trust Shares) versus the MSCI EAFE return of -12.3%. The Fund slightly underperformed its index, and is ranked in the 42nd percentile of the International Equity objective universe by Lipper for the 1-year period. As we look forward, we believe successful results for the Fund will be based on a dedication to in-depth fundamental research on companies brought to light via a disciplined quantitative process. Inherent in management of the Fund is a process designed to quickly identify sell candidates where earnings trends are beginning to deteriorate. Our approach should provide investors the opportunity to participate in the growth of the international markets while maintaining sensible valuation. We feel confident that the disciplined execution of our process should lead to strong investment results over time. During much of the prior year we were cautiously optimistic about the global economy and equity markets. At the end of each month it looked like next month was going to be a turn around. It took 9 months of constantly lower market levels before it finally started to happen. When the market did turn positive, it was a fast and furious dash up in double digits driven by improving investor confidence. Drivers of Performance: Japan was one the worst performing markets on an absolute basis, but the Fund did well with stock selection in Japan. Two stocks that really had a strong impact on performance were Konica, an optical lenses and camera company, up about 35% during the period, and Canon also in cameras and office machines, up 9% over the period. In non-Japan Asia stock selection was also very good; big drivers were Esprit holding, a clothing retailer, was up 16%, and in Singapore, Keppel, a conglomerate, up 15%. In the UK and Ireland, our stock selection in the financial sector also added value. Continental Europe was where we ran into some difficulty. Stock selection was sub par in much of Europe, with a few stocks really hurting the portfolio return. The Netherlands and France were the most difficult markets for us. Because of the volatility of the markets, and the lack of clearly exploitable inequalities, no large sector or country tactical movements were made. Looking forward, we think the recent rally is a statement for the health of the global economy. With large military actions and a time of insecurity behind us the economy has begun to show some strength. So far this year employment has not improved, but interest rates are low, companies are lean and the economy seems to be expanding albeit slowly. We think in this current environment our focused investment process will be able to lead us to outperformance in the year to come. Thank you for the opportunity to serve in the capacity as the manager of your international equities. /s/Chad Deakins Chad Deakins, CFA Portfolio Manager 12 TRUST SHARES AVERAGE ANNUAL TOTAL RETURNS (PERIODS ENDED MAY 31, 2003) - --------------------------------------------------------------------------- Annualized Cumulative Inception Inception One Year 3 Years 5 Years to Date to Date - --------------------------------------------------------------------------- - -13.40% -10.96% -6.29% 6.18% 64.78% - --------------------------------------------------------------------------- [Chart Omitted] [Plot Points follow] COMPARISON OF CHANGE IN THE VALUE OF A $10,000 INVESTMENT STI Classic International Equity MSCI EAFE Index, Fund, Trust Shares in U.S.$ 1/31/95 10,000 10,000 5/95 11,637 10,862 5/96 15,179 12,021 5/97 18,714 12,928 5/98 22,807 14,365 5/99 21,112 14,991 5/00 23,346 17,560 5/01 20,827 14,535 5/02 19,027 13,139 5/03 16,478 11,523
INVESTOR SHARES AVERAGE ANNUAL TOTAL RETURNS (PERIODS ENDED MAY 31, 2003) - --------------------------------------------------------------------------- Annualized Cumulative Inception Inception One Year 3 Years 5 Years to Date to Date - --------------------------------------------------------------------------- - -13.70% -11.26% -6.63% 5.83% 60.33% Without load - --------------------------------------------------------------------------- - -16.94% -12.40% -7.34% 5.35% 54.37% With load - --------------------------------------------------------------------------------
[Chart Omitted] [Plot Points follow] COMPARISON OF CHANGE IN THE VALUE OF A $10,000 INVESTMENT STI Classic International Equity MSCI EAFE Index, Fund, Investor Shares in U.S.$ 1/31/95 9,625 10,000 5/95 11,201 10,862 5/96 14,585 12,021 5/97 17,918 12,928 5/98 21,750 14,365 5/99 20,049 14,991 5/00 22,084 17,560 5/01 19,626 14,535 5/02 17,880 13,139 5/03 15,430 11,523
FLEX SHARES AVERAGE ANNUAL TOTAL RETURNS (PERIODS ENDED MAY 31, 2003) - --------------------------------------------------------------------------- Annualized Cumulative Inception Inception One Year 3 Years 5 Years to Date to Date - --------------------------------------------------------------------------- - -14,28% -11.89% -7.29% 5.19% 52.44% Without CDSC - --------------------------------------------------------------------------- - -16.00% With CDSC - -------
[Chart Omitted] [Plot Points follow] COMPARISON OF CHANGE IN THE VALUE OF A $10,000 INVESTMENT STI Classic International Equity MSCI EAFE Index, Fund, Flex Shares in U.S.$ 1/31/95 10,000 10,000 5/95 11,637 10,862 5/96 15,139 12,021 5/97 18,467 12,928 5/98 22,260 14,365 5/99 20,372 14,991 5/00 22,283 17,560 5/01 19,674 14,535 5/02 17,783 13,139 5/03 15,242 11,523 Past performance is no indication of future performance. The Funds' comparative benchmarks do not include the annual operating expenses incurred by the Fund. *For periods prior to December 1995, when the Fund began operating, the performance quoted reflects performance of the Adviser's similarly managed collective investment fund, adjusted to reflect fees and expenses of the Fund's Trust Shares. Trust Shares have lower expenses than Investor or Flex Shares, which results in higher performance for the Flex and Investor Shares than it would have been had the expenses of these classes have been applied. The collective investment fund was not a registered mutual fund, and therefore, was not subject to certain investment and tax restrictions which may have adversely affected performance. Returns shown do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares. 13 STI CLASSIC INTERNATIONAL EQUITY INDEX FUND ------------------------------------------- The STI Classic International Equity Index Fund (the "Fund") invests in equity securities of foreign issuers and seeks to closely match the returns of the MSCI EAFE-GDP Index, the Fund's benchmark. To help minimize tracking error, the Fund holds approximately 650 stocks in the portfolio. Tracking error represents a measure of how closely a portfolio matches the return of its benchmark. The tracking error of the Fund continues to come down and is lower this year than last. Performance for the year was down in most sectors. However the Telecommunications Services and Utilities sectors did end up in positive territory for the 12-month period ended May 31, 2003. Telecommunications Services stocks were quite strong in Western Europe with many European telecomm stocks up 50-100% during this period. Telecomm in Asia was not strong at all, and most Telecom firms actually were in negative territory returning worse than the index as a whole. In Asia, Utility stocks were the best performers, which would seem to be in line with the more defensive nature of these types of stocks and the markets being down. Regionally Asia performed almost twice as poorly as Europe, dominated by Japan's large weight in the index and a return of -25% for the MSCI Japan trailing 12 months. New Zealand, a small market, was a bright spot up 21%, and Australia managed to also end up slightly positive. What is very surprising about the returns outlined above is that much of Europe uses a common currency, the Euro. Based on various methods of calculation the Euro increased more than 20% during the 12-month period. So the European market had a 20% lead and was still off about 13%, a little worse than the return of the U.S. market. Large cap stocks performed worse than smaller cap stocks in general. Growth and Value styles were about equally poor. Higher dividend yielding stocks performed better than lower yielding stocks. Lower P/E (price to earnings) stocks performed better than higher P/E stocks. The returns of the past year were capped off by a rather strong April-May period, which pushed the markets up 16%. Much of the recent market strength is due to the resolution of many distractions in the global forefront, like the war in Iraq and SARS. There is the perception of an improved economic outlook, and higher beta stocks have led in the recent market rally. Looking forward, the European economy may struggle under the strength of the Euro. Germany in particular has a large export flow to the U.S. In Japan, the bad news seems to be in the past, and in the rest of Asia SARS is ebbing as a concern. Japan is currently trading at very cheap levels, and we look for Asia ex Japan to be the engine for global growth going forward. Why should you invest in International markets now? The U.S. market as a percent of the total global equity market has continued to shrink, and is now less than half of the investable global equity universe. An investor with no International exposure is missing out on half the opportunity set. As referenced above, New Zealand was the best performing market in the world. A U.S. only investor is missing out on good performing markets like these. International stocks have a low correlation with other U.S. based asset categories, and therefore the overall volatility of a portfolio including international and domestic equities should theoretically offer enhanced diversification. The Fund has power to be a good vehicle to gain exposure to the developed International markets of the world. /s/Chad Deakins Chad Deakins, CFA Portfolio Manager 14 TRUST SHARES AVERAGE ANNUAL TOTAL RETURNS (PERIODS ENDED MAY 31, 2003) - --------------------------------------------------------------------------- Annualized Cumulative Inception Inception One Year 3 Years 5 Years to Date to Date - --------------------------------------------------------------------------- - -13.63% -15.03% -4.61 2.04% 19.86% - --------------------------------------------------------------------------- [Chart Omitted] [Plot Points follow] COMPARISON OF CHANGE IN THE VALUE OF A $10,000 INVESTMENT STI Classic MSCI EAFE-GDP Index International Equity Index Weighted, in U.S.$ Fund, Trust Shares (Price Return) 6/30/94 10,000 10,000 5/95 10,331 10,343 5/96 11,291 11,256 5/97 12,135 12,067 5/98 15,269 14,401 5/99 16,470 15,010 5/00 19,659 17,900 5/01 15,944 14,558 5/02 13,962 12,817 5/03 12,059 10,924
INVESTOR SHARES AVERAGE ANNUAL TOTAL RETURNS (PERIODS ENDED MAY 31, 2003) - --------------------------------------------------------------------------- Annualized Cumulative Inception Inception One Year 3 Years 5 Years to Date to Date - --------------------------------------------------------------------------- - -14.03% -15.38% -5.02% 1.61% 15.39% Without load - --------------------------------------------------------------------------- - -17.29% -16.46% -5.74% 1.17% 11.06% With load - ---------------------------------------------------------------------------
[Chart Omitted] [Plot Points follow] STI Classic MSCI EAFE-GDP Index International Equity Index Weighted, in U.S.$ Fund, Investor Shares (Price Return) 6/30/94 9,625 10,000 5/95 9,904 10,343 5/96 10,786 11,256 5/97 11,554 12,067 5/98 14,471 14,401 5/99 15,532 15,010 5/00 18,461 17,900 5/01 14,896 14,558 5/02 13,012 12,817 5/03 11,186 10,924
FLEX SHARES AVERAGE ANNUAL TOTAL RETURNS (PERIODS ENDED MAY 31, 2003) - --------------------------------------------------------------------------- Annualized Cumulative Inception Inception One Year 3 Years 5 Years to Date to Date - --------------------------------------------------------------------------- - -14.56% -15.94% -5.64% 0.87% 7.17% Without CDSC - --------------------------------------------------------------------------- - -16.27% With load - -------
[Chart Omitted] [Plot Points follow] COMPARISON OF CHANGE IN THE VALUE OF A $10,000 INVESTMENT STI Classic MSCI EAFE-GDP Index International Equity Index Weighted, in U.S.$ Fund, Flex Shares (Price Return) 6/30/95 10,000 10,000 5/96 10,911 11,020 5/97 11,610 11,814 5/98 14,455 14,099 5/99 15,421 14,696 5/00 18,202 17,525 5/01 14,591 14,253 5/02 12,655 12,548 5/03 10,812 10,695 Past performance is no indication of future performance. The Funds' comparative benchmarks do not include the annual operating expenses incurred by the Fund. Returns shown do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares. 15 STI CLASSIC LIFE VISION AGGRESSIVE GROWTH FUND ---------------------------------------------- Diversified portfolios continued to provide relative stability during the past year against what proved to be an economically, financially and politically turbulent climate. The economy continued to grow, but the pace remained sluggish by historical standards. Part of the reason was the limited severity of the recession, but an important factor accounting for the slow pace was the war with Iraq and worse than normal winter weather. These two factors tended to put many spending and hiring plans on hold. In particular job creation, a key ingredient to a sustained expansion, floundered throughout the period, much as it did in the "stealth" recovery of 1991. Businesses limited new capital spending over the period, focusing primarily on information technology projects rather than new structures. The modest pace of the expansion kept downward pressure on most prices, with the Consumer Price Index up only 2.1% over the year ending in May. By early 2003, the possibility of deflation (falling prices) became an issue for the Federal Reserve. On the positive side, the expansion was supported by further declines in interest rates and a third round of tax cuts by the Bush Administration, boosting the housing market, spending, and consumer confidence despite the weak job climate. Over the twelve months stocks generally fell, though there was evidence of a cyclical bottom by the end of the first quarter. The S&P 500 Index lost 8.1% on a total return basis for the year, while the S&P 600 SmallCap Index dropped 10.9%. While the volatility in the STIClassic Life Vision Aggressive Growth Fund (the "Fund") was relatively limited, the exposure to the small-cap and international equity sectors was a drag on overall returns. Our outlook for the economy is positive, and we believe growth will gain momentum in the coming quarters. In addition, we expect monetary and fiscal policies to remain supportive during this time, until the expansion becomes self-sustaining and the risk of deflation is eliminated. Equities should benefit from a stronger economy, but some pockets of weakness could continue as weaker companies are weeded out. The diversified approach in the Fund should help mitigate that risk. We wish to take this opportunity to thank you again for the confidence you have placed with us in managing your funds in the STI Classic Life Vision Aggressive Growth Fund. We will strive to keep that trust in the coming year. /s/David E. West David E. West Managing Director /s/Alan M. Gayle Alan M. Gayle Managing Director 16
TRUST SHARES(1) AVERAGE ANNUAL TOTAL RETURNS (PERIODS ENDED MAY 31, 2003) - ------------------------------------------------------------------------------------------ Annualized Cumulative Inception Inception 1 Years 3 Years 5 Years 10 Years to Date to Date - ------------------------------------------------------------------------------------------ - -10.36% -4.92% -0.23% 6.87 7.28% 107.95% - ------------------------------------------------------------------------------------------
[Chart Omitted] [Plot Points follow] COMPARISON OF CHANGE IN THE VALUE OF A $10,000 INVESTMENT* STI Classic Life Vision Salomon Aggressive 3-Month Russell MSCI Russell Russell Growth Fund, 90/10 S&P 500 Treasury 61/15/12/10/02 1000 EAFE 2000 Midcap Trust Hybrid:** Index Bill Index Hybrid:** Index Index Index Index 5/31/93 10,000 10,000 10,000 10,000 10,000 10,000 10,000 10,000 10,000 5/94 10,134 10,416 10,423 10,325 10,613 10,413 11,357 10,872 10,560 5/95 11,320 12,355 12,523 10,863 12,138 12,388 11,919 11,992 12,232 5/96 13,890 15,562 16,082 11,458 15,141 16,038 13,191 16,296 15,723 5/97 16,095 19,745 20,811 12,061 18,060 20,391 14,187 17,431 18,439 5/98 19,668 25,275 27,193 12,693 22,378 26,653 15,763 21,134 23,479 5/99 21,088 30,222 32,917 13,296 25,395 32,066 16,450 20,565 25,594 5/00 22,617 33,262 36,367 13,989 28,516 35,901 19,270 22,603 28,988 5/01 23,311 30,305 32,530 14,800 26,283 32,034 15,950 23,890 30,417 5/02 21,689 26,599 28,025 15,189 23,818 27,761 14,419 23,770 29,316 5/03 19,442 24,753 25,766 15,412 22,091 25,621 12,645 21,826 27,792
B SHARES(2) AVERAGE ANNUAL TOTAL RETURNS (PERIODS ENDED MAY 31, 2003) - ------------------------------------------------------------------------------------------ Annualized Cumulative Inception Inception 1 Years 3 Years 5 Years 10 Years to Date to Date - ------------------------------------------------------------------------------------------ - -10.58% -5.00% -0.28% 6.85 7.26% 107.42% Without CDSC - ------------------------------------------------------------------------------------------ - -15.04% -6.09% -0.58% With CDSC - ------------------------------------------
[Chart Omitted] [Plot Points follow]
COMPARISON OF CHANGE IN THE VALUE OF A $10,000 INVESTMENT* STI Classic Life Vision Salomon Aggressive 3-Month Russell MSCI Russell Russell Growth Fund, 90/10 S&P 500 Treasury 61/15/12/10/02 1000 EAFE 2000 Midcap B Shares Hybrid:** Index Bill Index Hybrid:** Index Index Index Index 5/31/93 10,000 10,000 10,000 10,000 10,000 10,000 10,000 10,000 10,000 5/94 10,134 10,416 10,423 10,325 10,613 10,413 11,357 10,872 10,560 5/95 11,320 12,355 12,523 10,863 12,138 12,388 11,919 11,992 12,232 5/96 13,890 15,562 16,082 11,458 15,141 16,038 13,191 16,296 15,723 5/97 16,095 19,745 20,811 12,061 18,060 20,391 14,187 17,431 18,439 5/98 19,668 25,275 27,193 12,693 22,378 26,653 15,763 21,134 23,479 5/99 21,088 30,222 32,917 13,296 25,395 32,066 16,450 20,565 25,594 5/00 22,617 33,262 36,367 13,989 28,516 35,901 19,270 22,603 28,988 5/01 23,311 30,305 32,530 14,800 26,283 32,034 15,950 23,890 30,417 5/02 21,689 26,599 28,025 15,189 23,818 27,761 14,419 23,770 29,316 5/03 19,394 24,753 25,766 15,412 22,091 25,621 12,645 21,826 27,792
Past performance is no indication of future performance. The Funds' comparative benchmarks do not include the annual operating expenses incurred by the Fund. *For periods prior to June 1997, when the Fund began operating, the performance quoted reflects past performance of Crestar Bank's similarly managed asset allocation model, adjusted to reflect the Fund's fees and expenses. The asset allocation model was not a registered mutual fund, and therefore was not subject to certain investment and tax restrictions which may have adversely affected performance. **Previously the Fund's return had been compared to the 61/15/12/10/2 Hybrid, but the Adviser believes that the 90/10 Hybrid is more representative of the Fund's investment universe. (1) Trust Shares were offered beginning on June 30, 1997. (2) B Shares were offered beginning on March 11, 2003. B Shares' performance for the periods prior to March 11, 2003 reflects the performance of the Fund's Trust Shares. The performance of the Trust Shares has not been adjusted to reflect the higher internal operating expenses of the B Shares. If it had, performance would have been lower than that shown. The cumulative total return of the B shares from its inception date of March 11, 2003 to May 31, 2003 was 18.03%. Returns shown do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares. 17 STI CLASSIC LIFE VISION CONSERVATIVE FUND ----------------------------------------- The STI Classic Life Vision Conservative Fund (the "Fund"), the newest member of Life Vision family of diversified portfolios, got off to a good start in May 2003 amid an economically, financially and politically turbulent environment. The economy continued to grow, but the pace remained sluggish by historical standards. Part of the reason was the limited severity of the recession, but an important factor accounting for the slow pace was the war with Iraq and worse than normal winter weather. These two factors tended to put many spending and hiring plans on hold. In particular job creation, a key ingredient to a sustained expansion, floundered throughout the period, much as it did in the "stealth" recovery of 1991. Businesses limited new capital spending over the period, focusing primarily on information technology projects rather than new structures. The modest pace of the expansion kept downward pressure on most prices, with the Consumer Price Index up only 2.1% over the year ending in May. By early 2003, the possibility of deflation (falling prices) became an issue for the Federal Reserve. On the positive side, the expansion was supported by further declines in interest rates and a third round of tax cuts by the Bush Administration, boosting the housing market, spending, and consumer confidence despite the weak job climate. Moreover, as corporate profits continued to recover, investors began to return to the markets. Stocks and bonds gained in the opening month of the Fund. The diversified blend in the Fund performed well against its peers. The overweight position in credit sensitive bonds, in addition to a diversified portfolio of stocks, allowed the Fund to perform well in the opening month. Our outlook for the economy is positive, and we believe growth will gain momentum in the coming quarters. In addition, we expect monetary and fiscal policies to remain supportive during this time, until the expansion becomes self-sustaining and the risk of deflation is eliminated. In this environment, we will maintain our exposure to both equities and bonds, and we will emphasize sectors that are probable beneficiaries of stronger growth. We wish to take this opportunity to thank you again for the confidence you have placed with us in managing your funds in the STI Classic Life Vision Conservative Fund. We will strive to keep that trust in the coming year. /s/David E. West David E. West Managing Director /s/Alan M. Gayle Alan M. Gayle Managing Director 18 B SHARES(1) AVERAGE ANNUAL TOTAL RETURNS (PERIODS ENDED MAY 31, 2003) Cumulative Inception to Date - ------------ 4.30% Without CDSC - ------------ -0.70 With CDSC - ------------
[Chart Omitted] [Plot Points follow] COMPARISON OF CHANGE IN THE VALUE OF A $10,000 INVESTMENT STI Classic Life Vision 70/20/10 Lehman U.S. Salomon 3-Month Conservative Fund, Hybrid Aggregate Bond S&P 500 Treasury Bill B Shares Benchmark: Index Index Index 3/31/03 10,000 10,000 10,000 10,000 10,000 5/03 10,482 10,466 10,271 11,394 10,020
Past performance is no indication of future performance. The Funds' comparative benchmarks do not include the annual operating expenses incurred by the Fund. (1) B Shares were offered beginning on March 11, 2003. Returns shown do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares. 19 STI CLASSIC LIFE VISION GROWTH AND INCOME FUND ---------------------------------------------- Diversified portfolios continued to provide relative stability during the past year and a good defense against what proved to be an economically, financially and politically turbulent climate. The economy continued to grow, but the pace remained sluggish by historical standards. Part of the reason was the limited severity of the recession, but an important factor accounting for the slow pace was the war with Iraq and worse than normal winter weather. These two factors tended to put many spending and hiring plans on hold. In particular job creation, a key ingredient to a sustained expansion, floundered throughout the period, much as it did in the "stealth" recovery of 1991. Businesses limited new capital spending over the period, focusing primarily on information technology projects rather than new structures. The modest pace of the expansion kept downward pressure on most prices, with the Consumer Price Index up only 2.1% over the year ending in May. By early 2003, the possibility of deflation (falling prices) became an issue for the Federal Reserve. On the positive side, the expansion was supported by further declines in interest rates and a third round of tax cuts by the Bush Administration, boosting the housing market, spending, and consumer confidence despite the weak job climate. Over the twelve months, bonds outperformed stocks. The Lehman Aggregate Bond Index returned 11.6% for the year ended May 31, 2003 while the S&P 500 Index lost 8.1%. The diversified blend in the portfolio performed well against its peers despite this challenging environment. While stocks of all types lagged, bond positions appreciated, offsetting a portion of the equity weakness. Moreover, a modest position in the high yield market, initiated at the end of 2002, performed particularly well, and further enhanced fund returns. Our outlook for the economy is positive, and we believe growth will gain momentum in the coming quarters. In addition, we expect monetary and fiscal policies to remain supportive during this time, until the expansion becomes self-sustaining and the risk of deflation is eliminated. In this environment, we will be overweight equities and underweight bonds, and we will emphasize sectors that are probable beneficiaries of stronger growth. We wish to take this opportunity to thank you again for the confidence you have placed with us in managing your funds in the STI Classic Life Vision Growth and Income Fund. We will strive to keep that trust in the coming year. /s/David E. West David E. West Managing Director /s/Alan M. Gayle Alan M. Gayle Managing Director 20
TRUST SHARES(1) AVERAGE ANNUAL TOTAL RETURNS (PERIODS ENDED MAY 31, 2003) - ------------------------------------------------------------------------------------------ Annualized Cumulative Inception Inception One Year 3 Years 5 Years 10 Years to Date to Date - ------------------------------------------------------------------------------------------ - -5.16% -0.73% 2.00% 6.85% 7.11% 104.54% - ------------------------------------------------------------------------------------------
[Chart Omitted] [Plot Points follow] COMPARISON OF CHANGE IN THE VALUE OF A $10,000 INVESTMENT
STI Classic Life Vision Salomon Growth and 60/25/10 Lehman U.S. 3-Month Income Fund, 60/25/10 S&P 500 Aggregate Treasury Trust Shares Hybrid:** Index Bond Index Bill Index 5/31/93 10,000 10,000 10,000 10,000 10,000 5/94 10,107 10,328 10,423 10,069 10,325 5/95 11,255 12,028 12,523 11,227 10,863 5/96 13,154 14,390 16,082 11,719 11,458 5/97 14,869 17,483 20,811 12,694 12,061 5/98 17,562 21,509 27,193 14,080 12,693 5/99 18,728 24,867 32,197 14,691 13,296 5/00 19,816 26,878 36,367 15,001 13,989 5/01 21,067 26,040 32,530 16,967 14,800 5/02 20,441 24,253 28,025 18,344 15,189 5/03 19,386 23,788 25,766 20,468 15,412
Merrill 1-5 Year Russell US Corporate/ Lehman U.S. Russell Russell 40/17/16/13/12/2 1000 Government Government/ MSCI EAFE 2000 Midcap Hybrid: Index Index Credit Index Index Index Index 5/31/93 10,000 10,000 10,000 10,000 10,000 10,000 10,000 5/94 10,511 10,413 10,175 10,101 11,357 10,872 10,560 5/95 11,889 12,388 11,035 11,274 11,919 11,992 12,232 5/96 14,157 16,038 11,590 11,736 13,191 16,296 15,723 5/97 16,339 20,391 12,393 12,663 14,187 17,431 18,439 5/98 19,597 26,653 13,353 14,117 15,763 21,134 23,479 5/99 21,668 32,066 14,059 14,690 16,450 20,565 25,594 5/00 23,796 35,901 14,551 14,968 19,270 22,603 28,988 5/01 23,335 32,034 16,188 16,894 15,950 23,890 30,417 5/02 22,359 27,761 17,337 18,218 14,419 23,770 29,316 5/03 21,970 25,621 18,821 20,871 12,645 21,826 27,792
B SHARES(2) AVERAGE ANNUAL TOTAL RETURNS (PERIODS ENDED MAY 31, 2003) - ------------------------------------------------------------------------------------------ Annualized Cumulative Inception Inception One Year 3 Years 5 Years 10 Years to Date to Date - ------------------------------------------------------------------------------------------ - -5.17% -0.73% 1.99% 6.84% 7.11% 104.51% Without CDSC - ------------------------------------------------------------------------------------------ - -9.85% -1.95% 1.69% With CDSC - ----------------------------------------------
[Chart Omitted] [Plot Points follow] COMPARISON OF CHANGE IN THE VALUE OF A $10,000 INVESTMENT
STI Classic Life Vision Salomon Growth and Lehman U.S. 3-Month Income Fund, 60/25/10 S&P 500 Aggregate Treasury B Shares Hybrid:** Index Bond Index Bill Index 5/31/93 10,000 10,000 10,000 10,000 10,000 5/94 10,107 10,328 10,423 10,069 10,325 5/95 11,255 12,028 12,523 11,227 10,863 5/96 13,154 14,390 16,082 11,719 11,458 5/97 14,869 17,483 20,811 12,694 12,061 5/98 17,562 21,509 27,193 14,080 12,693 5/99 18,728 24,867 32,197 14,691 13,296 5/00 19,816 26,878 36,367 15,001 13,989 5/01 21,067 26,040 32,530 16,967 14,800 5/02 20,441 24,253 28,025 18,344 15,189 5/03 19,384 23,788 25,766 20,468 15,412
Merrill 1-5 Year Russell US Corporate/ Lehman U.S. Russell Russell 40/17/16/13/12/2 1000 Government Government/ MSCI EAFE 2000 Midcap Hybrid: Index Index Credit Index Index Index Index 5/31/93 10,000 10,000 10,000 10,000 10,000 10,000 10,000 5/94 10,511 10,413 10,175 10,101 11,357 10,872 10,560 5/95 11,889 12,388 11,035 11,274 11,919 11,992 12,232 5/96 14,157 16,038 11,590 11,736 13,191 16,296 15,723 5/97 16,339 20,391 12,393 12,663 14,187 17,431 18,439 5/98 19,597 26,653 13,353 14,117 15,763 21,134 23,479 5/99 21,668 32,066 14,059 14,690 16,450 20,565 25,594 5/00 23,796 35,901 14,551 14,968 19,270 22,603 28,988 5/01 23,335 32,034 16,188 16,894 15,950 23,890 30,417 5/02 22,359 27,761 17,337 18,218 14,419 23,770 29,316 5/03 21,970 25,621 18,821 20,871 12,645 21,826 27,792
Past performance is no indication of future performance. The Funds' comparative benchmarks do not include the annual operating expenses incurred by the Fund. *For periods prior to June 1997, when the Fund began operating, the performance quoted reflects performance of Crestar Bank's similarly managed asset allocation model, adjusted to reflect the Fund's fees and expenses. The asset allocation model was not a registered mutual fund, and therefore was not subject to certain investment and tax restrictions which may have adversely affected performance. **Previously the Fund's return had been compared to the 40/17/16/13/12/2 Hybrid, but the Adviser believes that the 65/25/10 Hybrid is more representative of the Fund's investment universe. (1) Trust Shares were offered beginning on June 30, 1997. (2) B Shares were offered beginning on March 11, 2003. B Shares' performance for the periods prior to March 11, 2003 reflects the performance of the Fund's Trust Shares. The performance of the Trust Shares has not been adjusted to reflect the higher internal operating expenses of the B Shares. If it had, performance would have been lower than that shown. The cumulative total return of the B Shares from its inception date of March 11, 2003 to May 31, 2003 was 15.57% Returns shown do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares. 21 STI CLASSIC LIFE VISION MODERATE GROWTH FUND -------------------------------------------- Diversified portfolios continued to provide relative stability during the past year and a good defense against what proved to be an economically, financially and politically turbulent climate. The economy continued to grow, but the pace remained sluggish by historical standards. Part of the reason was the limited severity of the recession, but an important factor accounting for the slow pace was the war with Iraq and worse than normal winter weather. These two factors tended to put many spending and hiring plans on hold. In particular job creation, a key ingredient to a sustained expansion, floundered throughout the period, much as it did in the "stealth" recovery of 1991. Businesses limited new capital spending over the period, focusing primarily on information technology projects rather than new structures. The modest pace of the expansion kept downward pressure on most prices, with the Consumer Price Index up only 2.1% over the year ending in May. By early 2003, the possibility of deflation (falling prices) became an issue for the Federal Reserve. On the positive side, the expansion was supported by further declines in interest rates and a third round of tax cuts by the Bush Administration, boosting the housing market, spending, and consumer confidence despite the weak job climate. Over the twelve months, bonds outperformed stocks. The Lehman Aggregate Bond Index returned 11.6% for the year ended May 31, 2003 while the S&P 500 Index lost 8.1%. The diversified blend in the Moderate Growth portfolio performed well against its peers despite this challenging environment. While stocks of all types lagged, bond positions appreciated, offsetting a portion of the equity weakness. Moreover, a modest position in the high yield market, initiated at the end of 2002, performed particularly well, and further enhanced fund returns. Our outlook for the economy is positive, and we believe growth will gain momentum in the coming quarters. In addition, we expect monetary and fiscal policies to remain supportive during this time, until the expansion becomes self-sustaining and the risk of deflation is eliminated. In this environment, we will be overweight equities and underweight bonds, and we will emphasize sectors that are probable beneficiaries of stronger growth. We wish to take this opportunity to thank you again for the confidence you have placed with us in managing your funds in the STI Classic Life Vision Moderate Growth Fund. We will strive to keep that trust in the coming year. /s/David E. West David E. West Managing Director /s/Alan M. Gayle Alan M. Gayle Managing Director 22
TRUST SHARES(1) AVERAGE ANNUAL TOTAL RETURNS (PERIODS ENDED MAY 31, 2003) - ------------------------------------------------------------------------------------------ Annualized Cumulative Inception Inception One Year 3 Years 5 Years 10 Years to Date to Date - ------------------------------------------------------------------------------------------ - -2.21% 0.46% 2.43% 6.52% 6.79% 98.24% - ------------------------------------------------------------------------------------------
[Chart Omitted] [Plot Points follow] COMPARISON OF CHANGE IN THE VALUE OF A $10,000 INVESTMENT
Salomon STI Classic Life Lehman U.S. 3-Month Vision Moderate 50/40/10 S&P 500 Aggregate Treasury Growth Fund, Trust Hybrid:** Index Bond Index Bill Index 05/31/93 10,000 10,000 10,000 10,000 10,000 5/94 10,059 10,275 10,423 10,069 10,325 5/95 11,172 11,834 12,523 11,227 10,863 5/96 12,752 13,726 16,082 11,719 11,458 5/97 14,246 16,239 20,811 12,694 12,061 5/98 16,682 19,497 27,193 14,080 12,693 5/99 17,761 22,055 32,917 14,691 13,296 5/00 18,553 23,565 36,367 15,001 13,989 5/01 19,533 23,657 32,530 16,967 14,800 5/02 19,236 22,810 28,025 18,344 15,189 5/03 18,811 23,048 25,766 20,468 15,412
Merrill 1-5 Year Russell US Corporate/ Lehman U.S. Russell Russell 27/26/22/14/10/1 1000 Government Government/ MSCI EAFE 2000 Midcap Hybrid: Index Index Credit Index Index Index Index 5/31/93 10,000 10,000 10,000 10,000 10,000 10,000 10,000 5/94 10,471 10,413 10,175 10,101 11,357 10,872 10,560 5/95 11,708 12,388 11,035 11,274 11,919 11,992 12,232 5/96 13,472 16,038 11,590 11,736 13,191 16,296 15,723 5/97 15,195 20,391 12,393 12,663 14,187 17,431 18,439 5/98 17,746 26,653 13,353 14,117 15,763 21,134 23,479 5/99 19,301 32,066 14,059 14,690 16,450 20,565 25,594 5/00 20,936 35,901 14,551 14,968 19,270 22,603 28,988 5/01 21,122 32,034 16,188 16,894 15,950 23,890 30,417 5/02 20,833 27,761 17,337 18,218 14,419 23,770 29,316 5/03 21,041 25,621 18,821 20,871 12,645 21,826 27,792
B SHARES(2) AVERAGE ANNUAL TOTAL RETURNS (PERIODS ENDED MAY 31, 2002)
- ------------------------------------------------------------------------------------------ Annualized Cumulative Inception Inception One Year 3 Years 5 Years 10 Years to Date to Date - ------------------------------------------------------------------------------------------ -2.47% 0.37% 2.38% 6.49 6.76% 97.72% Without CDSC - ------------------------------------------------------------------------------------------ -7.26% -0.76% 2.08% With CDSC - ---------------------------------------------
[Chart Omitted] [Plot Points follow] COMPARISON OF CHANGE IN THE VALUE OF A $10,000 INVESTMENT
STI Classic Life Salomon Vision Moderate Lehman U.S. 3-Month Growth Fund, 50/40/10 S&P 500 Aggregate Treasury B Shares Hybrid:** Index Bond Index Bill Index 05/31/93 10,000 10,000 10,000 10,000 10,000 05/94 10,059 10,275 10,423 10,069 10,325 05/95 11,172 11,834 12,523 11,227 10,863 05/96 12,752 13,726 16,082 11,719 11,458 05/97 14,246 16,239 20,811 12,694 12,061 05/98 16,682 19,497 27,193 14,080 12,693 05/99 17,761 22,055 32,917 14,691 13,296 05/00 18,553 23,565 36,367 15,001 13,989 05/01 19,533 23,657 32,530 16,967 14,800 05/02 19,236 22,810 28,025 18,344 15,189 05/03 18,761 23,048 25,766 20,468 15,412
Merrill 1-5 Year Russell U.S. Corporate/ Lehman U.S. Russell Russell 27/26/22/14/10/1 1000 Government Government/ MSCI EAFE 2000 Midcap Hybrid Index Index Credit Index Index Index Index 5/31/93 10,000 10,000 10,000 10,000 10,000 10,000 10,000 5/94 10,471 10,413 10,175 10,101 11,357 10,872 10,560 5/95 11,708 12,388 11,035 11,274 11,919 11,992 12,232 5/96 13,472 16,038 11,590 11,736 13,191 16,296 15,723 5/97 15,195 20,391 12,393 12,663 14,187 17,431 18,439 5/98 17,746 26,653 13,353 14,117 15,763 21,134 23,479 5/99 19,301 32,066 14,059 14,690 16,450 20,565 25,594 5/00 20,936 35,901 14,551 14,968 19,270 22,603 28,988 5/01 21,122 32,034 16,188 16,894 15,950 23,890 30,417 5/02 20,833 27,761 17,337 18,218 14,419 23,770 29,316 5/03 21,041 25,621 18,821 20,871 12,645 21,826 27,792
Past performance is no indication of future performance. The Funds' comparative benchmarks do not include the annual operating expenses incurred by the Fund. *For periods prior to June 1997, when the Fund began operating, the performance quoted reflects performance of Crestar Bank's similarly managed asset allocation model, adjusted to reflect the Fund's fees and expenses. The asset allocation pogram was not a registered mutual fund, and therefore was not subject to certain investment and tax restrictions which may have adversely affected performance. **Previously the Fund's return had been compared to the 27/26/22/14/10/1 Hybrid, but the Adviser believes that the 50/40/10 Hybrid is more representative of the Fund's universe. (1) Trust Shares were offered beginning on June 30, 1997. (2) B Shares were offered beginning on March 11, 2003. B Shares' performance for the periods prior to March 11, 2003 reflects the performance of the Fund's Trust Shares. The performance of the Trust Shares has not been adjusted to reflect the higher internal operating expenses of the B Shares. If it had, performance would have been lower than that shown. The cumulative total return of the B Shares from its inception date of March 11, 2003 to May 31, 2003 was 12.22%. Returns shown do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares. 23 STI CLASSIC MID-CAP EQUITY FUND -------------------------------- The STI Classic Mid-Cap Equity Fund ("the Fund") seeks capital appreciation by investing primarily in the stocks of companies, with a market capitalization between $500 million and $10 billion, or in the Russell Midcap Index. Mid cap securities that offer above average stock price appreciation relative to other securities in the same economic sector drive the investment philosophy. Proprietary, sector based models to rank stocks, are utilized in each sector in the mid cap market. These models utilize fundamental stock characteristics such as growth rates and cashflows. Fundamental research is used in the creation, maintenance, and enhancement of the sector based models to reflect changes in the mid cap market. For the fiscal year ending May 31, 2003 the Fund returned -10.73% (Trust Shares) versus a return of -5.2% for the Russell Midcap Index. In the past, a mixture of Mid Cap Core and Mid Cap Growth Benchmarks and Peer Groups have been used. The Fund underwent a portfolio management change in February of 2003. Going forward, while reference will be made to various Benchmarks and Peer Groups to describe what the market is rewarding, the Benchmark will be the Russell Midcap Index. It is expected, in due time, that the Fund will be moved to the Morningstar Mid Cap Core Peer Group. The underperformance for the one year ended May 31, 2003 can be primarily attributed to stock selection in the Consumer Discretionary and Technology Sectors as well as Sector Allocation percentages. In April 2003, changes were made in the portfolio to enhance the stock selection process, and also to reduce the overall risk in the portfolio relative to the benchmark. The sector and portfolio characteristic changes are included below. SECTOR WEIGHTS
Russell Midcap Fund Fund Sector 5/31/03 2/28/03 5/31/03 ---------- ---------- ---------- ---------- FINANCIALS 19.9% 14.2% 19.1% Consumer Discretionary 17.6% 19.0% 14.2% INFORMATION TECHNOLOGY 16.4% 10.4% 15.3% Healthcare 12.6% 13.7% 10.9% INDUSTRIALS 9.2% 14.4% 11.9% UTILITIES 7.9% 1.7% 7.5% Energy 5.8% 7.6% 7.9% Materials 5.4% 4.1% 2.9% Consumer Staples 3.6% 4.9% 2.7% Telecomm services 1.5% 1.1% 1.5% CHARACTERISTICS Russell Fund Fund Metric Midcap 2/28/03 5/31/03 ---------- ---------- ---------- ---------- Market Cap $4.6bb $3.1bb $5.2bb Dividend Yield 1.7% 0.6% 2.2% Price to Book 1.9 2.3 1.9 Price to Cashflow 7.3 8.4 7.3
In the month of May 2003, the Fund returned 9.3% versus the Russell Midcap Index of 9.15%. Looking forward, in the short term we believe the market will continue to reward those factors that it has rewarded year to date. That is, the market will continue to reward both ends of the Beta spectrum, as shown in a breakout by Quintile of the Highest to Lowest Beta Mid Cap stocks: YTD to 6/13/2003 ------------ Highest Beta Quintile 1: 31.7% Quintile 2: 17.3% Quintile 3: 12.4% Quintile 4: 13.3% Lowest Beta Quintile 5: 13.9% 24 At the High Beta end of the Beta continuum, the three year dearth of syndicate (IPO and secondary) financing activity has finally ended with most syndicate desks having significant visibility for the next month or two. At the Low Beta end of the continuum, the market is rewarding those stocks sporting a respectable dividend yield. This is likely due to recent changes in the recognition of dividends for tax purposes. While the syndicate window may only be open for a short time period, we think the market will continue to reward firms with an above average, defensible dividend yield. The portfolio is positioned to take advantage of these trends. Additionally, as the market recovers, we think there will be continued interest in Midcap strategies due to its consistent performance versus other U.S. equity strategies. As of the end of 2002, the Russell Mid Cap Index has outperformed the Larger Cap Russell 1000, and the Smaller Cap Russell 2000 for the trailing 1, 3, 5, 10, and 15 year time periods. /s/Kevin Shea Kevin Shea, CFA Co-Portfolio Manager /s/Chad Deakins Chad Deakins, CFA Co-Portfolio Manager 25 TRUST SHARES AVERAGE ANNUAL TOTAL RETURNS (PERIODS ENDED MAY 31, 2003) - --------------------------------------------------------------------------- Annualized Cumulative Inception Inception One Year 3 Years 5 Years to Date to Date - --------------------------------------------------------------------------- - -10.73% -9.43% -2.11% 6.08% 73.36% - --------------------------------------------------------------------------- [Chart Omitted] [Plot Points follow] COMPARISON OF CHANGE IN THE VALUE OF A $10,000 INVESTMENT STI Classic Mid-Cap Russell S&P Equity Fund, Mid-Cap Mid-Cap Trust Shares Index* 400 Index 2/28/94 10,000 10,000 10,000 5/94 9,735 9,654 9,516 5/95 10,958 11,182 10,803 5/96 13,756 14,373 13,873 5/97 15,714 16,857 16,397 5/98 19,035 21,464 21,294 5/99 19,342 23,397 23,837 5/00 23,036 26,500 28,950 5/01 21,442 27,806 32,111 5/02 19,171 26,800 32,879 5/03 17,114 25,406 29,873 INVESTOR SHARES AVERAGE ANNUAL TOTAL RETURNS (PERIODS ENDED MAY 31, 2003)
- --------------------------------------------------------------------------- Annualized Cumulative Inception Inception One Year 3 Years 5 Years to Date to Date - --------------------------------------------------------------------------- - -11.09% -9.82% -2.54% 5.58% 66.02% Without Load - --------------------------------------------------------------------------- - -14.43% -10.97% -3.27% 5.15% 59.79% With Load - ---------------------------------------------------------------------------
[Chart Omitted] [Plot Points follow] STI Classic Mid-Cap Russell S&P Equity Fund, Mid-Cap Mid-Cap Investor Shares Index* 400 Index 1/31/94 9,625 10,000 10,000 5/94 9,471 9,522 9,381 5/95 10,603 11,030 10,650 5/96 13,247 14,178 13,676 5/97 15,070 16,627 16,164 5/98 18,168 21,172 20,992 5/99 18,381 23,079 23,498 5/00 21,790 26,140 28,539 5/01 20,191 27,428 31,655 5/02 17,970 26,435 32,412 5/03 15,977 25,061 29,449 FLEX SHARES AVERAGE ANNUAL TOTAL RETURNS (PERIODS ENDED MAY 31, 2003)
- --------------------------------------------------------------------------- Annualized Cumulative Inception Inception One Year 3 Years 5 Years to Date to Date - --------------------------------------------------------------------------- - -11.71% -10.39% -3.13% 4.47% 41.79% Without CDSC - --------------------------------------------------------------------------- - -13.47% With CDSC - -------- [Chart Omitted] [Plot Points follow] COMPARISON OF CHANGE IN THE VALUE OF A $10,000 INVESTMENT STI Classic Mid-Cap Russell S&P Equity Fund, Mid-Cap Mid-Cap Flex Shares Index* 400 Index 6/30/95 10,000 10,000 10,000 5/96 11,839 12,436 12,339 5/97 13,385 14,585 14,584 5/98 16,035 18,571 18,940 5/99 16,125 20,244 21,201 5/00 19,006 22,929 25,749 5/01 17,508 24,059 28,561 5/02 15,488 23,188 29,243 5/03 13,674 21,983 26,570
Past performance is no indication of future performance. The Funds' comparative benchmarks do not include the annual operating expenses incurred by the Fund. *Previously the Fund's return had been compared to the S&P Mid-Cap 400 Index, but the Adviser believes that the Russell Midcap Index is more representative of the Fund's investment universe. Returns shown do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares. 26 This page left intentionally blank. STI CLASSIC MID CAP VALUE EQUITY FUND --------------------------------------- The STI Classic Mid Cap Value Equity Fund's ("the Fund") primary emphasis is capital appreciation. The Fund seeks to achieve this goal through investing in mid-cap (market capitalization between $1 billion and $12 billion) companies that are believed to be undervalued. Our philosophy is that potential superior returns can be gained by investing in solid companies that are trading at a discount to their history, their peers, or the market. The Fund utilizes a disciplined, bottoms-up approach of seeking out undervalued companies that display characteristics of financial strength. This examination is centered on the traditional financial statement analysis of balance sheets, income statements and statements of cash flows. Next, the Fund attempts to identify those companies with improving fundamentals and/or some catalyst that increase the likelihood of a company's value being realized. The Fund places more emphasis on valuation metrics such as Price/Sales, Enterprise Value/EBITDA and Long-Term Debt/Capitalization ratios versus the more common Price/Earnings and Price/Expected EPS Growth ratios. In general, the past year has been a difficult market environment. We are not pleased with the Fund's -19.05% (Trust Shares) return over the past year. The underperformance versus the Russell Mid-Cap Value Index, which returned -5.7% over the same time period, was due primarily to stock selection in the Consumer Discretionary sector. The Fund's process typically yields companies in the early stages of an economic or company specific turnaround. Therefore, it is not uncommon for initial underperformance to occur in any one company or even a whole sector in such a limited time frame as we are looking at here. The primary underperformance was due to the Fund's holdings of Cablevision, Interpublic Group and Visteon. A constant re-evaluation is conducted for any shifts in fundamentals and barring a major adverse change, we typically allow more time for a stock or sector to improve. However, due to high leverage at Cablevision, accounting irregularities at Interpublic and a weakening domestic auto build for Visteon, all of these stocks have been sold from the portfolio. Over longer time periods, we would expect our investment process to yield superior returns. The Fund's weighting in the Energy sector along with superior stock selection helped this area to have a positive impact on performance. The Fund's holdings in Valero (a refiner) and Tidewater (supply vessels) benefited from a rise in oil prices due to fairly strict adherence by OPEC to capacity cutbacks and the continued unrest in the Middle East. The valuations of many of the companies in this sector decreased as the market awaited the outcome of the war, and its impact on the supply/demand economics for oil and natural gas. Thus, the Fund's weightings in the Energy sector have been shifted to a more overweight position versus the benchmark. Looking ahead, the Fund is positioned to benefit from an anticipated economic recovery by being overweight in Materials and Industrials. The recent increase in equity values due to the market anticipating a economic rebound in latter 2003 has reinforced the commitment of the Fund to continue its focus on owning stocks with high quality balance sheets, stable cash flows and superior management teams. /s/Don Wordell Don Wordell Co-Portfolio Manager /s/Dan Lewis Dan Lewis Co-Portfolio Manager 28 TRUST SHARES* AVERAGE ANNUAL TOTAL RETURNS (PERIODS ENDED MAY 31, 2003) - -------------------------------------------- Annualized Cumulative Inception Inception One Year to Date to Date - -------------------------------------------- -19.05% -7.65% -11.25% - -------------------------------------------- [Chart Omitted] [Plot Points follow] COMPARISON OF CHANGE IN THE VALUE OF A $10,000 INVESTMENT STI Classic Mid-Cap Value Russell Equity Fund, Mid-Cap Trust Shares Value Index 11/30/01 10,000 10,000 5/02 10,965 11,212 5/03 8,876 10,570 FLEX SHARES AVERAGE ANNUAL TOTAL RETURNS (PERIODS ENDED MAY 31, 2003) - -------------------------------------------- Annualized Cumulative Inception Inception One Year to Date to Date - -------------------------------------------- - -19.58% -8.27% -12.15 Without CDSC - -------------------------------------------- - -21.16% With CDSC - -------- [Chart Omitted] [Plot Points follow] COMPARISON OF CHANGE IN THE VALUE OF A $10,000 INVESTMENT STI Classic Mid-Cap Value Russell Equity Fund, Mid-Cap Flex Shares Value Index 11/30/01 10,000 10,000 5/02 10,924 11,212 5/03 8,785 10,570 Past performance is no indication of future performance. The Funds' comparative benchmarks do not include the annual operating expenses incurred by the Fund. Returns shown do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares. 29 STI CLASSIC SMALL CAP GROWTH STOCK FUND --------------------------------------- The STI Classic Small Cap Growth Stock Fund's (the "Fund") investment philosophy is based on the premise that a portfolio of small cap stocks with positive earnings trends, reasonable valuation, and strong business fundamentals will provide superior returns over time. Fund management believes in executing a disciplined and objective investment process and controlling risk through a broadly diversified portfolio. In selecting stocks for the Fund, the management team looks for companies with strong current and projected earnings growth, improving profitability trends, a strong balance sheet, and high quality earnings. In addition, the business fundamentals of each company are rigorously scrutinized to determine the sustainability of a company's earnings growth prospects. Lastly, the Fund focuses on those companies that have the best combination of the above characteristics and purchases them at reasonable valuations. The portfolio holdings are spread across a broad spectrum of industries and economic sectors. This latest fiscal year 2003 represented an inflection point in the market and a turning point in many key trends that had been in place for the last couple of years. The technology bubble appeared to have reached full deflation as many technology, internet, and telecom companies either went bankrupt or reached their ultimate price lows in October. At their lows, many of these companies were trading at or below their tangible book value, and in many cases, trading at or below cash equivalents value on their balance sheet. While the NASDAQ Composite Index lost approximately 1% for the fiscal year, the Index was up approximately 32% from its lows through the end of May 2003. Another trend that reversed course was the performance of growth stocks versus value stocks. Value outperformed growth for 2 1/2 years through October 2002. Toward the latter part of this fiscal year and the beginning of calendar year 2003, growth stocks have picked up steam and have started to outperform value. And last, the trend of small cap stocks outperforming large cap stocks seemed to dissipate as economic worries and the war with Iraq loomed on the horizon. Small stocks tend to under perform when risk premiums widen due to an uncertain economic and/or investment climate. This turned out to be the case as large cap stocks outperformed small caps for three quarters in a row from June 30, 2002 to March 31, 2003. However, as the Iraq war played itself out with a positive conclusion, this uncertainty was all but eliminated from investors' minds. Small cap stocks once again took center stage for the last 2 months of the fiscal year. The S&P Small Cap 600 Index finished the May 2003 fiscal year with a -10.9% return, while the S&P 500 Index posted a -8.1% return for the year. The overall market seemed to bottom last October with a test of the lows seen in March 2003. In addition to the removal of war risk, the markets were spurred upward by stronger than expected 1st quarter corporate earnings reports, the ultimate passage of the Bush tax cut and stimulus package, new lows in bond yields and mortgage rates, and supportive comments by Fed Chairman Alan Greenspan. The Fed Chairman's comments established a shift in policy stance toward easy monetary policy to fight deflation. The new lows in interest rates have spurred a continuation of the healthy housing market and another wave of mortgage refinancing, re-igniting Consumer Discretionary, homebuilding, credit sensitive, and mortgage-related issues. For the year ended May 31, 2003, the Fund returned -10.5% (Trust Shares) compared to the -10.9% and -6.9% return of the S&P 600 Small Cap Index and the S&P 600/Barra Growth Index, respectively. While the Fund's return trailed the growth style index, its return was just slightly ahead of its mutual fund peer group as the Lipper Small Cap Growth average posted a -10.7% return. The Fund's (Trust Shares) return ranked in the 46th percentile within the Lipper Small Cap Growth category. With regard to sector performance, those sectors within the small cap market that performed best over the past year were Energy, Financials, Healthcare, and Utilities. Energy and Financials stocks were the standouts with +9.8% and +3.7% returns, respectively. Among these best performing sectors, the Fund maintained overweight positions within the Energy and Healthcare sectors during the year. This Energy overweight provided solid incremental performance to the Fund. Unfortunately, the Fund's substantial underweight in the Financials sector offset this positive contribution. Those sectors that performed most poorly were Consumer Staples, Industrials, Technology, and Materials. The Fund's overweight position within Technology heightened the negative impact from this under-performing sector. Overall stock selection for the Fund was positive compared to the S&P 600 Index as the Fund's returns within the Industrials, Consumer Staples, and Financials sectors were substantially better than the comparable sector returns for the Index. Within Consumer Staples, the standout performer was Cott, the leading supplier of retail brand or private label soft drinks. The company's strong performance was driven by earnings growth of 41% over the past year. The company continues to gain market share with many of the largest national and regional grocery, mass merchandise and wholesale chains in the country. The Fund's best performing stock within the Financials sector was Doral Financial. Doral has been a holding since the Fund's inception. This Puerto Rico based financial institution provides banking, mortgage banking, insurance, and investment banking services. The company is the leading mortgage banking institution in Puerto Rico. The company has grown its earnings at a 36% compound annual growth rate over the last four years and accelerated over this past year to approximately 50% growth. While growth should moderate in 2003 to about 30%, the stock still trades at a modest multiple of 13x earnings. While the Fund has consistently taken profits, the company has remained a stalwart among the Fund's top ten holdings. Recently, Doral's market cap has risen above the Fund's $3 billion threshold; as a result, Fund management will develop an orderly exit strategy to eliminate the company from the portfolio in the near future. 30 Other top performing stocks during the year for the Fund include eResearch Technology, Taro Pharmaceuticals, Dot Hill Systems, Western Digital, Integra Life Sciences, Hyperion Solutions, Sierra Health Services, Genesis Microchip, Avocent, Gevity HR, Corinthian Colleges, Comstock Resources, Jos A Bank Clothiers, and K-Swiss. eResearch is a technology-based business that serves the pharmaceutical and biotech industry. The company's technology and services enable the pharma industry to capture, collect, interpret, and distribute cardiac safety and clinical data more efficiently, streamlining the clinical trials process. The company is expected to grow earnings by 120% in 2003 and 46% in 2004. Earnings estimates have increased dramatically for 2003, going from $0.32 to $0.48 per share since the beginning of the year. Dot Hill Systems is a designer and developer of mid-level data storage products. The company recently signed a substantial deal with Sun Microsystems to provide its storage devices to be used in Sun's servers and storage products. This agreement has led to a significant increase in the company's revenue stream and earnings outlook. This stock has appreciated nearly 200% since the Fund's purchase earlier this calendar year. Western Digital, one of the leading manufacturers of hard disk drives, has demonstrated solid earnings and revenue growth in an environment without real demand drivers. The real key to their business is the current rational supply and pricing practices of the company and the other members of the industry oligopoly. Going forward, an improvement in demand from a new PC cycle will be the next leg to this cyclical growth story. Earnings estimates have risen from $0.44 to $0.92 per share for 2003. Jos. A. Bank Clothiers, the men's retail clothier, has emerged as one of the top small cap growth stories in the retail sector. The company has been generating very strong same-store-sales that has enabled them to exceed earnings estimates and post strong quarterly earnings growth, even during the recent difficult consumer environment. The company's enhanced store expansion strategy, solid balance sheet, improving profitability, and rising earnings estimates give us confidence that the company can sustain these strong trends. There were a couple of factors that provided a headwind to Fund performance for the year. The first calendar quarter of 2003 was particularly difficult for the Fund, representing the most substantial period of underperformance during the year. During this period and the year, the Fund experienced poor performance in several of its top ten holdings. These setbacks in some of the Fund's larger positions during the year had a significant negative impact on performance. Some of the companies that fall into this category include MTR Gaming, Nautilus, Accredo Health, Cryolife, and Chistopher & Banks. Cryolife, the largest negative contributor, cost the Fund approximately 1.3% in performance as the stock declined from $29 to approximately $2 per share. Additionally, Fund management was not able to capitalize on trading opportunities during the year, particularly in the technology sector. As a result, the Fund's overweight position in this sector became a burden as the overall trend in the sector was down. The Fund's overall strategy will remain consistent, as outlined above. This investment approach and process has successfully stood the test of time and has certainly provided solid performance to the Fund's shareholders since the inception of the Fund. Fund management will, however, re-focus on the execution of the stock selection, portfolio construction, and sell discipline processes. Specifically, with regard to stock selection, Fund management will focus on companies demonstrating accelerating earnings and sales momentum and positive estimate revisions. In addition, companies should demonstrate improving profitability trends, strong organic (non-acquisition) growth, low-debt balance sheets, and a history of wealth creation for its shareholders. Fund management will continue to focus on the fundamental drivers and catalysts for continued business success that will drive sustainable earnings and revenue growth. And last, valuation analysis, even for growth investors, is absolutely critical to evaluate a stock's risk/reward potential. With regard to portfolio construction, Fund management will adhere to our stated objectives of controlling risk through broad diversification and maintaining an equal-weighted portfolio approach. As such, this includes trimming or taking profits more readily in oversized positions and a constant re-evaluation of the risk/reward potential of successful stocks and top holdings. Lastly, with regard to sell discipline, this is a daily task that Fund management focuses on as much as, or more than, the stock selection decision. Despite our focus and best efforts, there is always room for improvement in the execution of the discipline. The overall combined effect of these efforts is to maintain a portfolio of companies, on an ongoing basis, that exhibit a strong earnings trend profile, high profitability characteristics, strong fundamentals, and reasonable valuation. /s/Mark D. Garfinkel Mark D. Garfinkel, CFA Portfolio Manager 31 TRUST SHARES AVERAGE ANNUAL TOTAL RETURNS (PERIODS ENDED MAY 31, 2003) - ----------------------------------------------------------- Annualized Cumulative Inception Inception One Year 3 Years to Date to Date - ----------------------------------------------------------- -10.50% -2.89% 12.07% 69.78% - ----------------------------------------------------------- [Chart Omitted] [Plot Points follow] COMPARISON OF CHANGE IN THE VALUE OF A $10,000 INVESTMENT STI Classic S&P Small Cap Small Cap Growth S&P Small Cap 600/BARRA Stock Fund, 600 Growth Trust Shares Index Index** 10/31/98 10,000 10,000 10,000 5/99 12,070 11,168 11,226 5/00 15,358 12,748 13,867 5/01 16,637 14,473 13,474 5/02 15,714 15,865 13,857 5/03 14,064 14,139 12,901 INVESTOR SHARES(1) AVERAGE ANNUAL TOTAL RETURNS (PERIODS ENDED MAY 31, 2003) - ----------------------------------------------------------- Annualized Cumulative Inception Inception One Year 3 Years to Date* to Date* - ----------------------------------------------------------- -10.77% -3.23% 11.78% 67.73% Without Load - ----------------------------------------------------------- -14.13% -4.45% 10.86% 61.44% With Load - ----------------------------------------------------------- [Chart Omitted] [Plot Points follow] COMPARISON OF CHANGE IN THE VALUE OF A $10,000 INVESTMENT STI Classic S&P Small Cap Small Cap Growth S&P Small Cap 600/BARRA Stock Fund, 600 Growth Investor Shares Index Index** 10/31/98 9,625 10,000 10,000 5/99 11,618 11,168 11,226 5/00 14,758 12,748 13,867 5/01 15,922 14,473 13,474 5/02 14,989 15,865 13,857 5/03 13,375 14,139 12,901 FLEX SHARES AVERAGE ANNUAL TOTAL RETURNS (PERIODS ENDED MAY 31, 2003) - ----------------------------------------------------------- Annualized Cumulative Inception Inception One Year 3 Years to Date to Date - ----------------------------------------------------------- -11.40% -3.88% 10.93% 61.92% Without CDSC - ----------------------------------------------------------- -13.14% With CDSC - ------------ [Chart Omitted] [Plot Points follow] COMPARISON OF CHANGE IN THE VALUE OF A $10,000 INVESTMENT STI Classic S&P Small Cap Small Cap Growth S&P Small Cap 600/BARRA Stock Fund, 600 Growth Flex Shares Index Index** 10/31/98 10,000 10,000 10,000 5/99 12,004 11,168 11,226 5/00 15,119 12,748 13,867 5/01 16,206 14,473 13,474 5/02 15,153 15,865 13,857 5/03 13,425 14,139 12,901 Past performance is no indication of future performance. The Funds' comparative benchmarks do not include the annual operating expenses incurred by the Fund. (1) Investor Shares were offered beginning on December 12, 1999. *Investor Shares performance for the periods prior to December 12, 1999 reflects the performance of the Fund's Trust Shares. The performance of the Trust Shares has not been adjusted to reflect the higher internal operating expenses of the Investor Shares. If it had, performance would have been lower than that shown. **Previously the Fund's return had been compared to the S&P Small Cap 600 Index, but the Advisor believes that the S&P Small Cap 600/BARRA Growth Index is more representative of the Fund's investment universe. Returns shown do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares. 32 This page left intentionally blank. STI CLASSIC SMALL CAP VALUE EQUITY FUND --------------------------------------- Both small cap value equities and the STIClassic Small Cap Value Equity Fund (the "Fund") had negative total returns over the past year. However, the Fund outperformed the Russell 2000 Value Index for the past 12 months. Much like last year, the stream of negative news and economic set backs continued throughout the year. Investors had a lot to overcome. Terrorist worries, falling consumer confidence, reduced spending, negative corporate earnings, and the possibility of falling back into a recession all took their toll. These events culminated with the war in Iraq that dominated the headlines and investor thinking throughout the year. With the war now behind us, hope has returned to the market. Small caps should regain their leadership position as they did following the last Gulf War. At that time, small caps went on to beat large caps by 18% over the next 12 months. It appears that fiscal policy, monetary policy, the exchange rate, and a decrease in the price of oil might be enough to give the economy the boost we have waited for. The positive news stream continued throughout the first quarter, as reported earnings were surprisingly strong, particularly in small caps, the surge in refinancing continued, mutual fund flows turned positive, new mortgages and housing starts remained at high levels, tax cuts became effective, and most importantly consumer confidence began to bounce back. While this is an impressive list of positives, we are still facing weak employment, state and local deficits, low operating rates, and struggling foreign economies. However we continue to believe that the positives outweigh the negatives and that the weak spots in the economy will be corrected. Health Care stocks performed very well over the year. Materials and Consumer Discretionary stocks under performed in the Russell 2000 Value Index. The Fund added value through stock selection in the Utility, Consumer Discretionary, and Health Care sectors during the year. We believe the economy will show positive growth in the next several quarters. Accordingly, the portfolio is more heavily invested in many of the economically sensitive companies and less so in the more defensive areas. We see small cap valuations as more attractive when compared to large caps and we continue to take advantage of selective international opportunities as they frequently offer a better risk/return trade off. We remain positive on the small cap value sector and on all of the companies the Fund owns. We thank you for your continued interest in the Fund and look forward to continued success. /s/Brett Barner Brett Barner CFA Portfolio Manager 34 TRUST SHARES AVERAGE ANNUAL TOTAL RETURNS (PERIODS ENDED MAY 31, 2003) - --------------------------------------------------------------------------- Annualized Cumulative Inception Inception One Year 3 Year 5 Years to Date to Date* - --------------------------------------------------------------------------- -5.09% 15.70% 3.70% 13.31% 198.50% - --------------------------------------------------------------------------- [Chart Omitted] [Plot Points follow] COMPARISON OF CHANGE IN THE VALUE OF A $10,000 INVESTMENT STI Classic Russell Small Cap Value Equity 2000 Value Fund, Trust Shares Index 8/31/94 10,000 10,000 5/95 11,432 10,471 5/96 15,171 13,273 5/97 20,138 16,010 5/98 24,888 20,280 5/99 20,229 18,347 5/00 19,274 18,300 5/01 26,194 23,684 5/02 31,448 27,336 5/03 29,848 25,285 FLEX SHARES AVERAGE ANNUAL TOTAL RETURNS (PERIODS ENDED MAY 31, 2003)
- --------------------------------------------------------------------------- Annualized Cumulative Inception Inception One Year 3 Years 5 Years to Date to Date* - ---------------------------------------------------------------------------- -6.10% 14.46% 2.63% 12.51% 180.44% Without CDSC - ---------------------------------------------------------------------------- -7.98% With CDSC - -----------
[Chart Omitted] [Plot Points follow] COMPARISON OF CHANGE IN THE VALUE OF A $10,000 INVESTMENT STI Classic Russell Small-Cap Value Equity 2000 Value Fund, Flex Shares Index 8/31/94 10,000 10,000 5/95 11,432 10,471 5/96 15,171 13,273 5/97 20,138 16,010 5/98 24,627 20,280 5/99 19,819 18,347 5/00 18,700 18,300 5/01 25,114 23,684 5/02 29,865 27,336 5/03 28,043 25,285 Past performance is no indication of future performance. The Funds' comparative benchmarks do not include the annual operating expenses incurred by the Fund. *For periods prior to January 1997, when the Fund began operating, the performance quoted reflects performance of the Adviser's similarly managed collective investment fund, adjusted to reflect fees and expenses of the Fund's Trust Shares. Flex Shares' performance for periods from January 1997 to June 1997 reflect performance of the Trust Shares. Trust Shares have lower expenses than Flex Shares, which results in higher performance for Flex Shares than it would have been had the expenses of that class been applied. The collective investment fund was not a registered mutual fund, and therefore was not subject to certain investment and tax restrictions which may have adversely affected performance. Returns shown do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares. 35 STI CLASSIC TAX SENSITIVE GROWTH STOCK FUND -------------------------------------------- The STI Classic Tax Sensitive Growth Stock Fund ("the Fund") seeks to provide long-term growth of capital with nominal dividend income by investing primarily in a diversified portfolio of common stocks of financially strong U.S. growth companies. Emphasis is placed on high quality, large capitalization companies with above average earnings growth prospects. Generally, portfolio holdings will be in stocks of companies which are market leaders in their respective sector and industry. The year ended May 31, 2003 was another poor one for the equity market as economic growth remained sluggish, corporate scandals continued, unemployment advanced and the war with Iraq became a reality. As the fiscal year ended, there were signs that perhaps the three year old "bear" market might be over as stocks rallied strongly when it became apparent that the conflict in Iraq would be resolved favorably and that the President's tax plan would be enacted. From its March low the S&P 500 Index rallied over 20%, however this was not enough to offset losses earlier in the fiscal year. For the year ended May 31, 2003, the benchmark S&P 500 Index returned -8.1% and the Lipper Large-Cap Core Index returned -8.7%. The Fund (Trust Shares) underperformed during this period with a return of -10.6%. The Fund's underperformance for the year was largely attributable to the poor relative returns of a few of the portfolio's Information Technology holdings. Throughout the year the Fund's weighting to this sector was increased as earnings trends improved and the prospects for stronger economic growth brightened. And while this decision proved to be a correct one in that the Information Technology sector was a relative outperformer for the year, several of the Fund's holdings experienced sharp selloffs as earnings disappointed. Looking forward, we are optimistic that the U.S. economy will continue to recover and that the pace of this recovery will strengthen as the year progresses. Corporate earnings are improving and continued low levels of inflation allow the Federal Reserve the flexibility to cut interest rates, if necessary. Passage of the President's tax plan should further stimulate consumer spending. The Fund continues to emphasize stocks of those companies that can achieve above average growth in this environment. /s/Stuart F. Van Arsdale Stuart F. Van Arsdale, CFA Portfolio Manager 36 TRUST SHARES AVERAGE ANNUAL TOTAL RETURNS (PERIODS ENDED MAY 31, 2003) - --------------------------------------------------------------------------- Annualized Cumulative Inception Inception One Year 3 Years 5 Years to Date to Date - --------------------------------------------------------------------------- -10.62% -14.37% -2.14% 6.12% 55.38% - --------------------------------------------------------------------------- [Chart Omitted] [Plot Points follow] COMPARISON OF CHANGE IN THE VALUE OF A $10,000 INVESTMENT STI Classic Tax Sensitive Growth Stock S&P 500 Fund, Trust Shares Index 12/31/95 10,000 10,000 5/96 10,767 10,966 5/97 13,971 14,190 5/98 17,311 18,542 5/99 22,402 22,445 5/00 24,750 24,797 5/01 19,995 22,181 5/02 17,386 19,109 5/03 15,540 17,569 FLEX SHARES AVERAGE ANNUAL TOTAL RETURNS (PERIODS ENDED MAY 31, 2003)
- --------------------------------------------------------------------------- Annualized Cumulative Inception Inception One Year 3 Years 5 Years to Date to Date - ---------------------------------------------------------------------------- -11.58% -15.29% -3.04% 5.46% 48.35% Without CDSC - ---------------------------------------------------------------------------- -13.35% With CDSC - ------------
[Chart Omitted] [Plot Points follow] COMPARISON OF CHANGE IN THE VALUE OF A $10,000 INVESTMENT STI Classic Tax Sensitive Growth Stock S&P 500 Fund, Flex Shares Index 12/31/95 10,000 10,000 5/96 10,767 10,966 5/97 13,971 14,190 5/98 17,311 18,542 5/99 22,309 22,445 5/00 24,401 24,797 5/01 19,506 22,181 5/02 16,779 19,109 5/03 14,836 17,569 Past performance is no indication of future performance. The Funds' comparative benchmarks do not include the annual operating expenses incurred by the Fund. *For periods prior to December 1998, when the Fund began operating, the performance quoted reflects performance of the Adviser's similarly managed collective investment fund, adjusted to reflect the Fund's fees and expenses. The collective investment fund was not a registered mutual fund and therefore was not subject to certain investment and tax restrictions which may have adversely affected performance. Returns shown do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares. 37 STI CLASSIC VALUE INCOME STOCK FUND ----------------------------------- The STI Classic Value Income Stock Fund ("the Fund") seeks to provide current income with capital appreciation by investing primarily in dividend paying equity securities. The Fund's investment philosophy is based on our belief that dividends are not only an important component of total return but also a very useful tool that provides information about a company's future earnings potential. The Fund employs a very disciplined and methodical approach to portfolio construction. The bottom-up process has three key factors to consider in all investment decisions: 1) Minimum dividend criteria, 2) Low historical valuation and 3) A catalyst for improving fundamental business momentum which can cause an upward revaluation in the individual security. Our process seeks dividend-paying stocks that are trading at the lower end of historical valuation ranges. The companies identified for focus are in the midst of fundamental change that we expect will reignite investor interest. They tend to exhibit "Value" characteristics such as low price-to-earnings ratios, low price-to-sales ratios and generally have higher dividend yields. The Fund's performance for the year ended May 31, 2003 was a -10.54% (Trust Shares) return versus -8.7% for the S&P 500/BARRA Value Index and -7.86% for the Russell 1000 Value Index. The market is cyclical and over the last several months growth has outperformed value. The Fund, as it always has, will remain committed to its value philosophy across all market cycles. The Fund benefited from superior stock picking in Utilities and an underweight position in Financials. This was offset by poor performance in Consumer Discretionary and Information Technology. The Fund is currently overweighted in Industrial stocks where valuations are reasonable, balance sheets are strong and operating leverage will be significant when economic activity fully recovers. The Fund is underweighted in Financials where net interest margin compression and credit concerns remain issues. It is also interesting to note that dividends are starting to garner increased investor attention these days in light of recent changes in the Federal tax code. Approximately 35% of the companies with market capitalization in excess of $2 billion do not pay a dividend. Many of these companies are reconsidering their dividend policy and many companies that currently pay a dividend are considering raising it. The Fund's primary investment philosophy is anchored to this very belief that dividend policies offer the solid evidence that investors seek. The Fund's portfolio yield continues to be consistently above that of the S&P 500/BARRA Value Index and its peer group, indicating continued attention to maintaining a pure Value discipline. /s/Mills A. Riddick Mills A. Riddick, CFA Portfolio Manager 38 TRUST SHARES AVERAGE ANNUAL TOTAL RETURNS (PERIODS ENDED MAY 31, 2003)
- ------------------------------------------------------------------------------------------ Annualized Cumulative Inception Inception One Year 3 Years 5 Years 10 Years to Date* to Date* - ------------------------------------------------------------------------------------------ - -10.54% -0.57% -0.45% 9.43% 11.01% 313.21% - ------------------------------------------------------------------------------------------
[Chart Omitted] [Plot Points follow] COMPARISON OF CHANGE IN THE VALUE OF A $10,000 INVESTMENT STI Classic Value S&P 500/BARRA Income Stock Fund, Value Trust Shares Index 5/31/93 10,000 10,000 5/94 10,998 10,744 5/95 13,094 12,578 5/96 16,749 15,892 5/97 20,464 19,938 5/98 25,191 25,705 5/99 27,995 29,069 5/00 25,050 29,819 5/01 28,579 31,946 5/02 27,527 27,023 5/03 24,626 24,674 INVESTOR SHARES AVERAGE ANNUAL TOTAL RETURNS (PERIODS ENDED MAY 31, 2003)
- ------------------------------------------------------------------------------------------ Annualized Cumulative Inception Inception One Year 3 Years 5 Years 10 Years to Date* to Date* - ------------------------------------------------------------------------------------------ - -10.85% -0.97% -0.84% 8.99% 10.68% 296.78% Without load - ------------------------------------------------------------------------------------------ - -14.20% -2.22% -1.60% 8.58% 10.37% 281.80% With load - ------------------------------------------------------------------------------------------
[Chart Omitted] [Plot Points follow] COMPARISON OF CHANGE IN THE VALUE OF A $10,000 INVESTMENT STI Classic Value S&P 500/BARRA Income Stock Fund, Value Investor Shares Index 5/31/93 9,625 10,000 5/94 10,519 10,744 5/95 12,487 12,578 5/96 15,908 15,892 5/97 19,358 19,938 5/98 23,754 25,705 5/99 26,298 29,069 5/00 23,450 29,819 5/01 26,646 31,946 5/02 25,543 27,023 5/03 22,772 24,674 FLEX SHARES AVERAGE ANNUAL TOTAL RETURNS (PERIODS ENDED MAY 31, 2003)
- ------------------------------------------------------------------------------------------ Annualized Cumulative Inception Inception One Year 3 Years 5 Years 10 Years to Date* to Date* - ------------------------------------------------------------------------------------------ - -11.56% -1.70% -1.57% 8.46% 10.29% 278.13% Without CDSC - ------------------------------------------------------------------------------------------ - -13.32% With CDSC - --------
[Chart Omitted] [Plot Points follow] COMPARISON OF CHANGE IN THE VALUE OF A $10,000 INVESTMENT STI Classic Value S&P 500/BARRA Income Stock Fund, Value Flex Shares Index 5/31/93 10,000 10,000 5/94 10,998 10,744 5/95 13,094 12,578 5/96 16,567 15,892 5/97 20,031 19,938 5/98 24,390 25,705 5/99 26,807 29,069 5/00 23,724 29,819 5/01 26,772 31,946 5/02 25,482 27,023 5/03 22,536 24,674 Past performance is no indication of future performance. The Funds' comparative benchmarks do not include the annual operating expenses incurred by the Fund. *For periods prior to February 1993, when the Fund began operating, the performance quoted reflects performance of the Adviser's similarly managed collective investment fund, adjusted to reflect the Fund's fees and expenses. The collective investment fund was not a registered mutual fund and therefore was not subject to certain investment and tax restrictions which may have adversely affected performance. Returns shown do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares. 39 STI CLASSIC VANTAGE FUND ------------------------ The STI Classic Vantage Fund ("the Fund") establishes long and short positions primarily in common stocks of U.S. companies. Using fundamental analysis, the Adviser buys stocks "long" that it believes will perform better than their peers, and sells stocks "short" that it believes will underperform their peers. A long position is established when the Adviser purchases a stock outright, and a short position is established when the Adviser sells a security that it has borrowed. Short positions may be used to partially hedge long positions or to garner returns from declines in security prices. From time to time, the Adviser may take defensive positions in cash or short-term debt securities. The Fund would initiate such defensive positions when the Adviser is concerned that short-term market volatility is unusually high or while the Adviser is reviewing and assessing the financial consequences of significant economic events. The Fund's investment process originates with bottom-up analysis in which it analyzes the key drivers of companies and their stocks. This type of analysis enhances the Adviser's ability to evaluate the competitive advantages and market sustainability of individual companies. The Fund also continuously assesses the macroeconomic environment in order to identify influential industry, economic and financial market trends. If after conducting rigorous analysis the Adviser determines certain macro trends are significant, sustainable and under-appreciated by market participants, the Fund will take positions in companies whose key drivers stand to be impacted directly or indirectly by the identified trends. The past year has been characterized by unusually high complexity and uncertainty for the equity markets. Investors have struggled to weigh concerns over anemic economic growth in recent months against hope for stronger economic activity in the future. This challenge has been complicated by the fact that the outlook for the U.S. economy has changed several times in the past twelve months. The prognosis for corporate profitability has also provided little investment clarity, as most companies indicated that they had little visibility into future earnings trends. The greatest uncertainty factor, however, appears to have come from the market's fixation with geopolitical events. Some investors have anticipated that resolution of global crises would unleash pent-up demand for various goods and services. Others have been concerned that geopolitical problems could deteriorate further. Still others have argued that geopolitical concerns are not as important as other structural problems in the U.S. economy. The difficult environment of the past year was challenging for the Fund. The crosscurrents mentioned above complicated the Fund's investment strategies and led to suboptimal stock selection. The Fund's performance also suffered from its reluctance to make aggressive short sales while the possibility of a large geopolitical relief rally existed. While the market's rise near the end of the Fund's fiscal year supported this fear, the one-year investment returns suffered from a lack of short positions. We do not expect the complexity and uncertainty experienced in the past twelve months to be repeated during the next year. Accordingly, we are optimistic that we can execute a much more effective investment strategy. /s/Alan Kelley Alan Kelley Portfolio Manager 40 TRUST SHARES(1) AVERAGE ANNUAL TOTAL RETURNS (PERIODS ENDED MAY 31, 2003) - -------------------------------------------- Annualized Cumulative Inception Inception One Year to Date to Date - -------------------------------------------- -12.44% -10.60% -15.50% - -------------------------------------------- [Chart Omitted] [Plot Points follow] COMPARISON OF CHANGE IN THE VALUE OF A $10,000 INVESTMENT STI Classic Wilshire Lehman U.S. Vantage Fund, 5000 Government/ Trust Shares Index Credit Index 11/30/01 10,000 10,000 10,000 5/02 9,669 9,661 10,158 5/03 8,467 8,964 11,637 FLEX SHARES(2) AVERAGE ANNUAL TOTAL RETURNS (PERIODS ENDED MAY 31, 2003) - -------------------------------------------- Annualized Cumulative Inception Inception One Year to Date to Date - -------------------------------------------- -12.97% -11.02% -16.10% Without CDSC - -------------------------------------------- -14.71% With CDSC - ------------ Chart Omitted] [Plot Points follow] COMPARISON OF CHANGE IN THE VALUE OF A $10,000 INVESTMENT STI Classic Wilshire Lehman U.S. Vantage Fund, 5000 Government/ Flex Shares Index Credit Index 11/30/01 10,000 10,000 10,000 5/02 9,660 9,661 10,158 5/03 8,407 8,964 11,637 Past performance is no indication of future performance. The Funds' comparative benchmarks do not include the annual operating expenses incurred by the Fund. (1) Trust Shares were offered beginning on November 30, 2001. (2) Flex Shares were offered beginning on March 11, 2002. Flex Shares performance for the periods prior to March 11, 2002 reflects the performance of the Fund's Trust Shares. The performance of the Trust Shares has not been adjusted to reflect the higher internal operating expenses of the Flex Shares. If it had, performance would have been lower than that shown. Returns shown do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares. 41 STATEMENT OF NET ASSETS - -------------------------------------------------------------------------------- STI CLASSIC EQUITY FUNDS MAY 31, 2003 BALANCED FUND - -------------------------------------------------------------------------------- SHARES VALUE (000) - -------------------------------------------------------------------------------- COMMON STOCK (42.7%) BASIC MATERIALS (0.3%) Praxair 14,000 $ 840 -------- CAPITAL GOODS (2.8%) 3M 12,000 1,518 Danaher 18,000 1,204 Eaton (D) 26,000 2,182 Lockheed Martin 76,000 3,528 -------- 8,432 -------- COMMUNICATION SERVICES (1.7%) Fox Entertainment Group, Cl A* 46,400 1,304 Nokia Oyj ADR 125,000 2,255 Tribune 32,800 1,636 -------- 5,195 -------- CONSUMER CYCLICALS (7.9%) AutoZone* 21,000 1,757 Bed Bath & Beyond* 67,100 2,808 Black & Decker 30,000 1,299 Brinker International* 37,500 1,306 CDW Computer Centers* (D) 13,800 562 Coach* (D) 38,200 1,877 Colgate-Palmolive 21,500 1,282 Family Dollar Stores 38,500 1,403 Gannett 24,800 1,959 Gap (D) 97,500 1,658 Gentex* 24,000 747 Harley-Davidson (D) 48,400 2,041 Lowe's 90,000 3,803 Ross Stores 32,600 1,376 -------- 23,878 -------- CONSUMER STAPLES (1.8%) Procter & Gamble 21,600 1,983 Starbucks* 23,000 567 Sysco 50,500 1,562 Whole Foods Market* 23,500 1,282 -------- 5,394 -------- ENERGY (4.2%) Anadarko Petroleum 33,000 1,626 Apache 15,960 1,052 BJ Services* 16,000 651 BP ADR 46,500 1,948 Burlington Resources 23,400 1,247 Exxon Mobil 86,500 3,149 Noble* 31,600 1,127 Schlumberger Ltd. 16,800 817 Valero Energy 32,300 1,211 -------- 12,828 -------- - -------------------------------------------------------------------------------- SHARES VALUE (000) - -------------------------------------------------------------------------------- FINANCE (8.5%) Aflac 52,000 $ 1,711 Allstate 58,500 2,105 AMBAC Financial Group 40,000 2,668 American Express 68,500 2,854 Bank of America 35,000 2,597 Countrywide Financial 50,000 3,683 Freddie Mac 69,400 4,151 Marsh & McLennan 20,000 1,003 Progressive 8,500 612 SLM (D) 38,200 4,584 -------- 25,968 -------- HEALTH CARE (7.7%) Allergan (D) 21,200 1,529 AmerisourceBergen 14,900 934 Amgen* 22,600 1,463 Bausch & Lomb (D) 36,700 1,392 Becton Dickinson 5,000 200 Forest Laboratories* 56,000 2,828 Health Management Associates, Cl A (D) 123,000 2,294 Johnson & Johnson 62,600 3,402 Pfizer 100,000 3,102 UnitedHealth Group 32,000 3,070 WellPoint Health Networks* 37,400 3,192 -------- 23,406 -------- SERVICES (1.2%) Apollo Group, Cl A* 65,000 3,797 -------- TECHNOLOGY (6.6%) Affiliated Computer Services, Cl A* 49,700 2,303 BEA Systems* 108,000 1,171 Cisco Systems* 135,000 2,198 EMC* 76,500 828 Intel 52,000 1,084 Mercury Interactive* (D) 30,000 1,179 Micron Technology* 112,000 1,268 Microsoft 148,000 3,642 Oracle* 237,000 3,083 STMicroelectronics 48,000 1,095 Sun Microsystems* 265,000 1,148 Xilinx* 39,800 1,189 -------- 20,188 -------- Total Common Stock (Cost $107,827) 129,926 -------- 42 - -------------------------------------------------------------------------------- - -------------------------------------------------------------------------------- FACE AMOUNT (000) VALUE (000) - -------------------------------------------------------------------------------- U.S. TREASURY OBLIGATIONS (12.1%) U.S. Treasury Bonds 7.500%, 11/15/16 $ 2,700 $ 3,727 6.250%, 08/15/23 to 05/15/30 10,175 12,858 5.375%, 02/15/31 6,400 7,436 U.S. Treasury Note (D) 5.875%, 11/15/05 11,500 12,726 -------- Total U.S. Treasury Obligations (Cost $33,601) 36,747 -------- U.S. GOVERNMENT MORTGAGE-BACKED OBLIGATIONS (11.5%) FNMA 7.000%, 05/01/32 3,552 3,742 6.500%, 02/01/17 to 07/01/32 2,881 3,007 6.000%, 09/01/17 2,687 2,799 5.000%, 06/01/29 5,891 6,044 4.500%, 06/18/18 3,933 4,031 GNMA 8.500%, 04/15/31 1,787 1,931 8.000%, 08/15/31 to 09/15/31 5,163 5,581 7.000%, 04/15/32 to 07/15/32 2,795 2,946 6.000%, 12/15/31 4,857 5,090 -------- Total U.S. Government Mortgage-Backed Obligations (Cost $34,428) 35,171 -------- CORPORATE OBLIGATIONS (23.2%) CAPITAL GOODS (1.7%) Alcoa 4.250%, 08/15/07 1,400 1,491 General Dynamics 4.250%, 05/15/13 650 663 2.125%, 05/15/06 775 779 Masco (D) 5.875%, 07/15/12 650 726 Northrop Grumman 7.125%, 02/15/11 625 758 Weyerhaeuser 7.950%, 03/15/25 575 713 -------- 5,130 -------- COMMUNICATION SERVICES (1.0%) Ameritech Capital Funding 6.450%, 01/15/18 1,250 1,479 AT&T Broadband 9.455%, 11/15/22 635 874 CBS 7.875%, 09/01/23 600 769 -------- 3,122 -------- - -------------------------------------------------------------------------------- FACE AMOUNT (000) VALUE (000) - -------------------------------------------------------------------------------- CONSUMER CYCLICALS (1.5%) Cardinal Health 4.450%, 06/30/05 $ 300 $ 316 DaimlerChrysler, Ser D, MTN 3.400%, 12/15/04 1,300 1,322 Ford Motor 6.625%, 10/01/28 750 637 Kroger (D) 5.500%, 02/01/13 700 746 Nordstrom 8.950%, 10/15/05 600 686 Viacom (D) 5.625%, 05/01/07 850 950 -------- 4,657 -------- CONSUMER STAPLES (1.4%) Coca-Cola Enterprises 8.500%, 02/01/22 1,550 2,154 ConAgra Foods 7.500%, 09/15/05 650 726 Diageo Capital 3.500%, 11/19/07 750 777 3.375%, 03/20/08 750 771 -------- 4,428 -------- ENERGY (1.3%) Anadarko Petroleum 3.250%, 05/01/08 1,050 1,052 Conoco 6.950%, 04/15/29 1,100 1,357 Kerr-McGee 5.875%, 09/15/06 425 465 5.375%, 04/15/05 275 290 Petroleos Mexicanos 9.250%, 03/30/18 650 786 -------- 3,950 -------- FINANCE (12.5%) Allstate 7.875%, 05/01/05 1,850 2,058 Bank of America 6.500%, 03/15/06 1,725 1,926 Bank One 5.500%, 03/26/07 800 889 Bear Stearns 3.000%, 03/30/06 1,400 1,440 Boeing Capital (D) 5.650%, 05/15/06 1,350 1,460 CIT Group 4.125%, 02/21/06 1,850 1,918 43 STATEMENT OF NET ASSETS - -------------------------------------------------------------------------------- STI CLASSIC EQUITY FUNDS MAY 31, 2003 BALANCED FUND--CONCLUDED - -------------------------------------------------------------------------------- FACE AMOUNT (000) VALUE (000) - -------------------------------------------------------------------------------- FINANCE -- CONTINUED EOP Operating LP 8.375%, 03/15/06 $ 675 $ 777 General Electric Capital 3.500%, 05/01/08 2,150 2,209 GMAC 6.875%, 08/28/12 950 984 Golden West Financial 4.125%, 08/15/07 750 798 Goldman Sachs Group 4.125%, 01/15/08 1,375 1,443 Household Finance 7.625%, 05/17/32 575 742 5.750%, 01/30/07 1,300 1,441 International Lease Finance, Ser M, MTN 5.950%, 06/06/05 1,950 2,078 KFW International Finance, Ser DTC 2.500%, 10/17/05 1,100 1,123 Lehman Brothers Holdings 4.000%, 01/22/08 1,400 1,467 Merrill Lynch, Ser B, MTN 2.940%, 01/30/06 2,025 2,065 MetLife 5.375%, 12/15/12 750 819 3.911%, 05/15/05 700 727 Morgan Stanley 5.300%, 03/01/13 1,400 1,494 National Rural Utilities 3.000%, 02/15/06 1,775 1,826 Salomon Smith Barney Holdings 6.500%, 02/15/08 1,350 1,564 Simon Property Group LP 6.375%, 11/15/07 700 789 Verizon Global Funding 7.750%, 12/01/30 1,200 1,527 Wachovia 6.800%, 06/01/05 1,000 1,097 Washington Mutual Financial 8.250%, 06/15/05 1,150 1,288 Wells Fargo (D) 3.500%, 04/04/08 2,075 2,143 -------- 38,092 -------- FOREIGN GOVERNMENTS (1.5%) Province of Ontario 6.000%, 02/21/06 1,300 1,442 2.350%, 06/30/06 725 735 Province of Quebec, Ser NN 7.125%, 02/09/24 1,200 1,544 United Mexican States 4.625%, 10/08/08 700 720 -------- 4,441 -------- - -------------------------------------------------------------------------------- FACE AMOUNT (000)/SHARES VALUE (000) - -------------------------------------------------------------------------------- TECHNOLOGY (0.5%) Computer Sciences 7.500%, 08/08/05 $1,375 $ 1,532 -------- TRANSPORTATION (0.5%) Norfolk Southern 7.800%, 05/15/27 575 741 Union Pacific 5.750%, 10/15/07 650 727 -------- 1,468 -------- UTILITIES (1.3%) Alabama Power, Ser Q 5.500%, 10/15/17 525 589 Alabama Power, Ser X 3.125%, 05/01/08 525 535 Carolina Power & Light 6.500%, 07/15/12 625 735 Consolidated Edison 4.875%, 02/01/13 750 801 Dominion Resources, Ser B 7.625%, 07/15/05 650 723 Pacificorp 6.900%, 11/15/11 450 539 -------- 3,922 -------- Total Corporate Obligations (Cost $66,432) 70,742 -------- ASSET-BACKED OBLIGATIONS (2.8%) Bank One Issuance Trust, Ser 2002-A4, Cl A4 2.940%, 06/16/08 2,100 2,160 Capital Auto Receivables Asset Trust, Ser 2002-4, Cl A4 2.640%, 03/17/08 1,200 1,226 General Electric Commercial Mortgage, Ser 2002-1A, Cl A3 6.269%, 12/10/35 2,000 2,337 Harley-Davidson Motorcycle Trust, Ser 2002-2, Cl A2 3.090%, 06/15/10 900 928 JPMorgan Chase Commercial Mortgage Securities, Ser 2002-C3, Cl A2 4.994%, 07/12/35 1,600 1,720 -------- Total Asset-Backed Obligations (Cost $7,816) 8,371 -------- EXCHANGE TRADED FUND (1.1%) SPDR Trust, Ser 1 34,200 3,316 -------- Total Exchange Traded Fund (Cost $3,007) 3,316 -------- 44 - -------------------------------------------------------------------------------- - -------------------------------------------------------------------------------- SHARES/FACE AMOUNT (000) VALUE (000) - -------------------------------------------------------------------------------- SHORT-TERM INVESTMENT (9.3%) Boston Global Investment Trust -- Enhanced Portfolio (A) 28,453,330 $ 28,453 -------- Total Short-Term Investment (Cost $28,453) 28,453 -------- REPURCHASE AGREEMENT (8.1%) UBS Paine Webber 1.289%, dated 05/30/03, matures 06/02/03, repurchase price $24,604,557 (collateralized by FHLB & FHLMC obligations: total market value $25,094,567) (C) $24,602 24,602 -------- Total Repurchase Agreement (Cost $24,602) 24,602 -------- Total Investments (110.8%) (Cost $306,166) 337,328 -------- OTHER ASSETS AND LIABILITIES (-10.8%) Payable Upon Return of Securities Loaned (28,453) Investment Advisory Fees Payable (228) Administration Fees Payable (17) Distribution Fees Payable (52) Custody Fees Payable (3) Transfer Agent Shareholder Servicing Fees Payable (1) Other Assets and Liabilities, Net (4,247) -------- Total Other Assets and Liabilities (33,001) -------- - -------------------------------------------------------------------------------- VALUE (000) - -------------------------------------------------------------------------------- NET ASSETS: Paid in Capital -- Trust Shares (unlimited authorization -- no par value) based on 19,165,647 outstanding shares of beneficial interest $214,565 Paid in Capital -- Investor Shares (unlimited authorization -- no par value) based on 691,974 outstanding shares of beneficial interest 7,589 Paid in Capital -- Flex Shares (unlimited authorization -- no par value) based on 5,717,273 outstanding shares of beneficial interest 73,767 Undistributed net investment income 863 Accumulated net realized loss on investments (23,619) Net unrealized appreciation on investments 31,162 -------- Total Net Assets (100.0%) $304,327 ======== Net Asset Value, Offering and Redemption Price Per Share -- Trust Shares ($228,475,006 / 19,165,647 shares) $11.92 ======== Net Asset Value and Redemption Price Per Share -- Investor Shares ($8,285,268 / 691,974 shares) $11.97 ======== Maximum Offering Price Per Share -- Investor Shares ($11.97 / 96.25%) $12.44 ======== Net Asset Value and Offering Price Per Share -- Flex Shares (1) ($67,567,048 / 5,717,273 shares) $11.82 ======== THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS. FOR DESCRIPTIONS OF ABBREVIATIONS AND FOOTNOTES, PLEASE SEE PAGE 83. 45 STATEMENT OF NET ASSETS - -------------------------------------------------------------------------------- STI CLASSIC EQUITY FUNDS MAY 31, 2003 CAPITAL APPRECIATION FUND - -------------------------------------------------------------------------------- SHARES VALUE (000) - -------------------------------------------------------------------------------- COMMON STOCK (94.3%) BASIC MATERIALS (0.5%) Praxair 105,000 $ 6,299 ---------- CAPITAL GOODS (5.7%) 3M 110,000 13,912 Danaher (D) 167,000 11,176 Eaton 181,500 15,233 Lockheed Martin 752,800 34,945 ---------- 75,266 ---------- COMMUNICATION SERVICES (4.0%) Fox Entertainment Group, Cl A* 450,000 12,650 Nokia Oyj ADR 1,250,000 22,550 Tribune 349,600 17,438 ---------- 52,638 ---------- CONSUMER CYCLICALS (17.3%) Autozone* 207,000 17,322 Bed Bath & Beyond* 541,500 22,656 Black & Decker 329,400 14,266 Brinker International* 387,500 13,497 CDW Computer Centers* (D) 154,700 6,302 Coach* 437,000 21,470 Colgate-Palmolive 212,500 12,669 Family Dollar Stores 388,000 14,143 Gannett (D) 236,000 18,644 Gap (D) 988,000 16,796 Gentex* 235,700 7,340 Harley-Davidson (D) 408,800 17,235 Lowe's 800,000 33,808 Ross Stores (D) 316,600 13,364 ---------- 229,512 ---------- CONSUMER STAPLES (3.9%) Procter & Gamble 222,000 20,384 Starbucks* 225,000 5,544 Sysco 522,700 16,173 Whole Foods Market* (D) 185,300 10,108 ---------- 52,209 ---------- ENERGY (9.4%) Anadarko Petroleum 342,000 16,854 Apache 155,400 10,244 BJ Services* 155,000 6,310 BP ADR 441,000 18,474 Burlington Resources (D) 210,000 11,191 Exxon Mobil 852,000 31,013 Noble* 340,000 12,124 Schlumberger Ltd. 167,800 8,158 Valero Energy 286,500 10,744 ---------- 125,112 ---------- FINANCE (19.5%) Aflac 452,000 14,875 Allstate 574,000 20,658 - -------------------------------------------------------------------------------- SHARES VALUE (000) - -------------------------------------------------------------------------------- FINANCE -- CONTINUED AMBAC Financial Group 408,000 $ 27,218 American Express 710,000 29,579 Bank of America 400,000 29,680 Countrywide Financial 387,000 28,502 Freddie Mac 696,500 41,658 Marsh & McLennan 195,000 9,775 Progressive 86,500 6,228 SLM (D) 424,000 50,880 ---------- 259,053 ---------- HEALTH CARE (17.0%) Allergan (D) 208,000 14,999 AmerisourceBergen 148,700 9,322 Amgen* 202,000 13,071 Bausch & Lomb (D) 356,000 13,507 Becton Dickinson 50,000 2,000 Forest Laboratories* 514,000 25,957 Health Management Associates, Cl A (D) 1,001,900 18,685 Johnson & Johnson 587,300 31,920 Pfizer 1,100,000 34,122 UnitedHealth Group 320,000 30,701 WellPoint Health Networks* 360,000 30,722 ---------- 225,006 ---------- SERVICES (2.6%) Apollo Group, Cl A* 600,000 35,052 ---------- TECHNOLOGY (14.4%) Affiliated Computer Services, Cl A* 430,000 19,926 BEA Systems* 1,074,000 11,642 Cisco Systems* 1,178,000 19,178 EMC* 750,000 8,115 Intel 522,000 10,878 Mercury Interactive* (D) 320,000 12,579 Micron Technology* 1,100,000 12,452 Microsoft 1,400,000 34,454 Oracle* 2,048,000 26,644 STMicroelectronics 475,000 10,835 Sun Microsystems* 2,600,000 11,258 Xilinx* (D) 409,000 12,217 ---------- 190,178 ---------- Total Common Stock (Cost $1,042,060) 1,250,325 ---------- EXCHANGE TRADED FUND (3.4%) SPDR Trust, Ser 1 472,175 45,777 ---------- Total Exchange Traded Fund (Cost $39,408) 45,777 ---------- 46 - -------------------------------------------------------------------------------- - -------------------------------------------------------------------------------- SHARES/FACE AMOUNT (000) VALUE (000) - -------------------------------------------------------------------------------- SHORT-TERM INVESTMENT (8.2%) Boston Global Investment Trust -- Enhanced Portfolio (A) 108,236,900 $ 108,237 ---------- Total Short-Term Investment (Cost $108,237) 108,237 ---------- REPURCHASE AGREEMENT (2.2%) UBS Paine Webber 1.289%, dated 05/30/03, matures 06/02/03, repurchase price $29,002,384 (collateralized by FHLB obligations: total market value $29,582,885) (C) $28,999 28,999 ---------- Total Repurchase Agreement (Cost $28,999) 28,999 ---------- Total Investments (108.1%) (Cost $1,218,704) 1,433,338 ---------- OTHER ASSETS AND LIABILITIES (-8.1%) Payable Upon Return of Securities Loaned (108,237) Investment Advisory Fees Payable (1,240) Administration Fees Payable (75) Distribution Fees Payable (143) Custody Fees Payable (15) Transfer Agent Shareholder Servicing Fees Payable (3) Other Assets and Liabilities, Net 2,917 ---------- Total Other Assets and Liabilities (106,796) ---------- - -------------------------------------------------------------------------------- VALUE (000) - -------------------------------------------------------------------------------- NET ASSETS: Paid in Capital -- Trust Shares (unlimited authorization -- no par value) based on 98,976,997 outstanding shares of beneficial interest $1,045,608 Paid in Capital -- Investor Shares (unlimited authorization -- no par value) based on 13,304,652 outstanding shares of beneficial interest 143,346 Paid in Capital -- Flex Shares (unlimited authorization -- no par value) based on 9,315,353 outstanding shares of beneficial interest 136,822 Accumulated net realized loss on investments (213,868) Net unrealized appreciation on investments 214,634 ---------- Total Net Assets (100.0%) $1,326,542 ========== Net Asset Value, Offering and Redemption Price Per Share -- Trust Shares ($1,090,548,499 / 98,976,977 shares) $11.02 ========== Net Asset Value and Redemption Price Per Share -- Investor Shares ($141,488,000 / 13,304,652 shares) $10.63 ========== Maximum Offering Price Per Share -- Investor Shares ($10.63 / 96.25%) $11.04 ========== Net Asset Value and Offering Price Per Share -- Flex Shares (1) ($94,505,382 / 9,315,353 shares) $10.15 ========== THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS. FOR DESCRIPTIONS OF ABBREVIATIONS AND FOOTNOTES, PLEASE SEE PAGE 83. 47 STATEMENT OF NET ASSETS - -------------------------------------------------------------------------------- STI CLASSIC EQUITY FUNDS MAY 31, 2003 GROWTH AND INCOME FUND - -------------------------------------------------------------------------------- SHARES VALUE (000) - -------------------------------------------------------------------------------- COMMON STOCK (97.2%) BASIC MATERIALS (4.2%) E.I. du Pont de Nemours 300,000 $ 12,642 International Flavors & Fragrances (D) 250,000 7,847 International Paper 250,000 9,168 -------- 29,657 -------- CAPITAL GOODS (12.7%) Boeing 225,000 6,901 Cooper Industries Ltd., Cl A (D) 300,000 11,967 Emerson Electric 225,000 11,767 General Electric 600,000 17,220 Honeywell International 500,000 13,100 Illinois Tool Works 150,000 9,307 Rockwell Automation 550,000 13,008 United Technologies 100,000 6,825 -------- 90,095 -------- COMMUNICATION SERVICES (4.0%) Alltel 200,000 9,576 Verizon Communications 500,000 18,925 -------- 28,501 -------- CONSUMER CYCLICALS (10.7%) AOL Time Warner 500,000 7,610 Brunswick 400,000 8,780 Gannett 80,000 6,320 Johnson Controls 80,000 6,660 Jones Apparel Group (D) 358,800 10,534 Lowe's 100,000 4,226 Newell Rubbermaid 400,000 11,400 Target 400,000 14,652 Walt Disney 300,000 5,895 -------- 76,077 -------- CONSUMER STAPLES (7.0%) Gillette 250,000 8,402 HJ Heinz 400,000 13,228 Kimberly-Clark 200,000 10,386 PepsiCo 100,000 4,420 Sara Lee 500,000 9,110 Sysco 125,000 3,868 -------- 49,414 -------- ENERGY (8.8%) Burlington Resources 150,000 7,993 ChevronTexaco 90,000 6,385 ConocoPhillips 275,000 14,842 Exxon Mobil 425,000 15,470 Royal Dutch Petroleum 200,000 9,110 XTO Energy (D) 400,000 8,584 -------- 62,384 -------- - -------------------------------------------------------------------------------- SHARES VALUE (000) - -------------------------------------------------------------------------------- FINANCE (24.0%) American International Group 200,000 $ 11,576 Bank of America 225,000 16,695 Bank One 250,000 9,340 Berkshire Hathaway, Cl B (D) 7,000 16,618 Citigroup 300,000 12,306 Countrywide Financial 90,000 6,629 Fannie Mae 30,000 2,220 Fifth Third Bancorp 150,000 8,625 Goldman Sachs Group 104,200 8,492 Jefferson-Pilot 225,000 9,493 MGIC Investment (D) 150,000 8,103 PNC Financial Services Group 300,000 14,775 Prudential Financial 500,000 16,760 U.S. Bancorp 800,000 18,960 Wells Fargo 200,000 9,660 -------- 170,252 -------- HEALTH CARE (11.5%) Abbott Laboratories 240,000 10,692 Barr Laboratories (D) 200,000 10,550 Bristol-Myers Squibb 500,000 12,800 C.R. Bard (D) 200,000 14,030 Express Scripts (D) 100,000 6,544 Johnson & Johnson 90,000 4,891 Oxford Health Plans (D) 350,000 12,961 Pfizer 300,000 9,306 -------- 81,774 -------- TECHNOLOGY (10.1%) Computer Sciences (D) 300,000 11,910 DST Systems 125,000 4,415 Hewlett-Packard 600,000 11,700 Intel 350,000 7,294 International Business Machines 90,000 7,924 Lexmark International 50,000 3,720 Microsoft 400,000 9,844 Motorola 750,000 6,390 Texas Instruments 400,000 8,200 -------- 71,397 -------- TRANSPORTATION (1.5%) Norfolk Southern 500,000 10,960 -------- UTILITIES (2.7%) American Electric Power 128,000 3,716 Duke Energy 200,000 3,876 Exelon 200,000 11,460 -------- 19,052 -------- Total Common Stock (Cost $620,887) 689,563 -------- 48 - -------------------------------------------------------------------------------- - -------------------------------------------------------------------------------- SHARES VALUE (000) - -------------------------------------------------------------------------------- SHORT-TERM INVESTMENT (4.0%) Boston Global Investment Trust -- Enhanced Portfolio (A) 28,431,700 $ 28,432 -------- Total Short-Term Investment (Cost $28,432) 28,432 -------- CASH EQUIVALENT (3.1%) SEI Daily Income Trust Prime Obligation Fund, Cl A 21,884,504 21,885 -------- Total Cash Equivalent (Cost $21,885) 21,885 -------- Total Investments (104.3%) (Cost $671,204) 739,880 -------- OTHER ASSETS AND LIABILITIES (-4.3%) Payable Upon Return of Securities Loaned (28,432) Investment Advisory Fees Payable (522) Administration Fees Payable (40) Distribution Fees Payable (49) Custody Fees Payable (8) Transfer Agent Shareholder Servicing Fees Payable (2) Other Assets and Liabilities, Net (1,399) -------- Total Other Assets and Liabilities (30,452) -------- NET ASSETS: Paid in Capital -- Trust Shares (unlimited authorization -- no par value) based on 49,040,070 outstanding shares of beneficial interest 594,718 Paid in Capital -- Investor Shares (unlimited authorization -- no par value) based on 2,949,174 outstanding shares of beneficial interest 34,250 Paid in Capital -- Flex Shares (unlimited authorization -- no par value) based on 6,146,158 outstanding shares of beneficial interest 95,776 Undistributed net investment income 1,189 Accumulated net realized loss on investments (85,181) Net unrealized appreciation on investments 68,676 -------- Total Net Assets (100.0%) $709,428 ======== - -------------------------------------------------------------------------------- VALUE (000) - -------------------------------------------------------------------------------- Net Asset Value, Offering and Redemption Price Per Share -- Trust Shares ($598,861,443 / 49,040,070 shares) $12.21 ======== Net Asset Value and Redemption Price Per Share -- Investor Shares ($36,305,339 / 2,949,174 shares) $12.31 ======== Maximum Offering Price Per Share -- Investor Shares ($12.31 / 96.25%) $12.79 ======== Net Asset Value and Offering Price Per Share -- Flex Shares (1) ($74,260,955 / 6,146,158 shares) $12.08 ======== THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS. FOR DESCRIPTIONS OF ABBREVIATIONS AND FOOTNOTES, PLEASE SEE PAGE 83. 49 SCHEDULE OF INVESTMENTS - -------------------------------------------------------------------------------- STI CLASSIC EQUITY FUNDS MAY 31, 2003 INFORMATION AND TECHNOLOGY FUND - -------------------------------------------------------------------------------- SHARES VALUE (000) - -------------------------------------------------------------------------------- COMMON STOCK (99.3%) COMMUNICATION SERVICES (10.9%) Alcatel ADR 50,000 $ 462 AudioCodes Ltd. 59,000 324 CenturyTel 4,000 135 Foundry Networks 31,000 477 Fox Entertainment Group, Cl A 10,000 281 Nortel Networks 100,000 314 ------- 1,993 ------- COMPUTER SOFTWARE (16.1%) Amdocs 42,000 819 Business Objects ADR 8,685 176 Cognos 9,000 247 Macromedia 10,000 202 McData, Cl B 44,195 595 Micromuse 17,000 161 Symantec (D) 6,020 272 Veritas Software (D) 17,000 472 ------- 2,944 ------- ENERGY (1.4%) Dynegy, Cl A 50,000 249 ------- FINANCE (6.7%) AMBAC Financial Group 5,000 333 LendingTree 9,500 223 Netbank 32,000 425 Priceline.com 60,000 245 ------- 1,226 ------- SEMICONDUCTORS (17.3%) Altera 7,500 145 Cypress Semiconductor (D) 22,500 249 GlobespanVirata 36,000 298 Intersil, Cl A 34,280 838 Linear Technology 8,000 291 Marvell Technology Group Ltd. (D) 23,792 754 Maxim Integrated Products 7,500 294 Micrel 10,000 121 Xilinx 6,000 179 ------- 3,169 ------- SERVICES (18.1%) 1-800-flowers.com, Cl A 27,000 225 Accenture Ltd., Cl A 19,000 333 Akamai Technologies (D) 48,000 176 Aquantive 10,400 82 Ask Jeeves (D) 9,000 115 eBay 2,000 203 - -------------------------------------------------------------------------------- SHARES/FACE AMOUNT (000) VALUE (000) - -------------------------------------------------------------------------------- SERVICES -- CONTINUED F5 Networks 20,000 $ 347 Getty Images 19,000 767 Hotels.com, Cl A (D) 2,300 209 USA Interactive (D) 15,000 577 VeriSign 18,000 270 ------- 3,304 ------- TECHNOLOGY (28.8%) Affiliated Computer Services, Cl A 4,000 185 CACI International, Cl A 7,000 231 Cisco Systems 27,000 440 Corning 50,000 365 Enterasys Networks 35,000 121 Extreme Networks 57,000 343 Hewlett-Packard 15,000 293 International Business Machines 8,000 704 Juniper Networks (D) 54,400 755 Lucent Technologies 110,000 243 Microsoft 18,000 443 Pec Solutions 25,000 366 Redback Networks 160,000 178 Sonus Networks 75,000 349 Yahoo! (D) 8,000 239 ------- 5,255 ------- Total Common Stock (Cost $15,164) 18,140 ------- SHORT-TERM INVESTMENT (22.2%) Boston Global Investment Trust -- Enhanced Portfolio (A) 4,063,300 4,063 ------- Total Short-Term Investment (Cost $4,063) 4,063 ------- REPURCHASE AGREEMENT (1.1%) Morgan Stanley 1.50%, dated 05/30/03, matures 06/02/03, repurchase price $207,143 (collateralized by U.S. Treasury Notes: total market value $211,269) (C) $207 207 ------- Total Repurchase Agreement (Cost $207) 207 ------- Total Investments (122.6%) (Cost $19,434) $22,410 ======= Percentages are based on Net Assets of $18,273,972. THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS. FOR DESCRIPTIONS OF ABBREVIATIONS AND FOOTNOTES, PLEASE SEE PAGE 83. 50 - -------------------------------------------------------------------------------- INTERNATIONAL EQUITY FUND - -------------------------------------------------------------------------------- SHARES VALUE (000) - -------------------------------------------------------------------------------- FOREIGN COMMON STOCK (93.7%) AUSTRALIA (5.1%) Amcor 149,777 $ 800 Australia & New Zealand Banking Group 89,326 1,079 Australian Gas Light 125,600 929 BHP Billiton 51,284 288 Boral (D) 364,500 1,164 Foodland Associated 76,708 967 News Corp 257,803 1,952 Origin Energy 304,300 892 QBE Insurance Group 111,600 653 Westpac Banking 163,400 1,736 -------- 10,460 -------- BELGIUM (0.8%) Fortis (D) 101,786 1,658 -------- DENMARK (0.8%) Danske Bank 76,755 1,605 -------- FINLAND (1.7%) Nokia Oyj 159,446 2,869 Tietoenator Oyj 29,315 509 -------- 3,378 -------- FRANCE (8.1%) Alcatel 90,600 830 Aventis 31,475 1,643 BNP Paribas 59,475 2,945 Dassault Systemes (D) 10,398 341 France Telecom (D) 52,000 1,285 Lafarge (D) 4,932 314 Pernod-Ricard 7,600 756 Peugeot 25,783 1,178 Societe Generale 9,400 577 Suez (D) 57,003 969 Technip-Coflexip (D) 3,757 360 Thomson Multimedia (D) 20,433 351 Total 27,149 3,975 Vinci 3,100 213 Vivendi Universal 40,700 747 -------- 16,484 -------- GERMANY (6.5%) Allianz 7,509 569 BASF 47,365 2,053 Bayerische Motoren Werke (D) 15,365 531 Buderus 10,540 367 Deutsche Bank (D) 32,187 1,885 Deutsche Telekom 140,692 2,106 E.ON 10,300 530 Muenchener Rueckversicherungs 9,400 1,014 - -------------------------------------------------------------------------------- SHARES VALUE (000) - -------------------------------------------------------------------------------- GERMANY -- CONTINUED SAP 11,916 $ 1,338 Schering 9,100 479 Siemens 39,713 1,882 Volkswagen 9,900 358 -------- 13,112 -------- HONG KONG (1.4%) Cheung Kong Holdings 56,000 341 CLP Holdings 94,000 405 Esprit Holdings 320,500 678 HongKong Electric Holdings 196,000 781 Hutchison Whampoa 109,700 667 -------- 2,872 -------- IRELAND (1.0%) Allied Irish Banks 49,600 740 Anglo Irish Bank 150,000 1,318 -------- 2,058 -------- ITALY (4.2%) Banca Intesa 390,157 1,248 ENI-Ente Nazionale Idrocarburi (D) 140,713 2,271 Parmalat Finanziaria (D) 436,457 1,283 Saipem (D) 122,567 905 Telecom Italia 156,140 1,443 TIM (D) 139,300 729 UniCredito Italiano (D) 140,200 642 -------- 8,521 -------- JAPAN (18.1%) Aiful 17,150 718 Aisin Seiki (D) 88,900 1,266 Asahi Glass 109,000 593 Bank of Fukuoka (D) 50,000 193 Canon 66,100 2,763 Credit Saison 32,900 578 Denso 25,900 365 East Japan Railway 158 760 Fast Retailing 13,800 467 Hitachi 168,000 655 Honda Motor 36,500 1,315 JFE Holdings 40,800 479 Kao 53,000 975 KDDI 361 1,253 Kirin Brewery 130,000 967 Komatsu 113,000 416 Konica 141,000 1,293 Millea Holdings 56 405 Mitsubishi Heavy Industries 404,800 863 Mitsubishi Tokyo Financial Group 163 613 51 SCHEDULE OF INVESTMENTS - -------------------------------------------------------------------------------- STI CLASSIC EQUITY FUNDS MAY 31, 2003 INTERNATIONAL EQUITY FUND--CONCLUDED - -------------------------------------------------------------------------------- SHARES VALUE (000) - -------------------------------------------------------------------------------- JAPAN -- CONTINUED Mitsui 82,500 $ 381 Mitsui Fudosan 167,000 983 Mitsui OSK Lines 451,000 1,203 Mitsui Sumitomo Insurance 64,000 288 Nippon Express 224,000 805 Nippon Steel 361,000 410 Nippon Telegraph & Telephone 265 913 Nissan Motor 83,400 658 Nitto Denko 14,400 438 Nomura Holdings 62,000 630 Oki Electric Industry 217,000 517 Olympus Optical 44,200 835 Osaka Gas 351,000 965 Pioneer 48,800 1,024 Ricoh 123,300 1,835 Seven-Eleven Japan 15,000 375 Sharp 51,000 561 Shin-Etsu Chemical 18,000 551 Sony 15,700 417 Sumitomo 76,000 322 Sumitomo Chemical 133,000 365 Sumitomo Mitsui Financial Group (D) 159 263 Taisho Pharmaceutical 40,000 573 Takeda Chemical Industries 22,000 863 Tokyo Electric Power 42,500 858 Tokyo Gas 88,000 275 Toshiba 55,000 167 Toyota Motor 30,500 729 West Japan Railway 117 422 Yamaha 45,200 611 Yamanouchi Pharmaceutical 22,700 611 -------- 36,785 -------- NETHERLANDS (5.0%) ABN AMRO Holding 130,326 2,521 Akzo Nobel 7,081 180 IHC Caland (D) 9,911 525 ING Groep 90,347 1,456 Koninklijke Philips Electronics 68,203 1,332 Nutreco Holding (D) 11,463 206 Royal Dutch Petroleum 40,400 1,827 Royal KPN 148,100 1,033 Unilever 9,400 549 United Services Group 54,590 610 -------- 10,239 -------- NEW ZEALAND (0.3%) Fletcher Building 304,839 618 -------- NORWAY (0.4%) Telenor (D) 180,711 815 -------- - -------------------------------------------------------------------------------- SHARES VALUE (000) - -------------------------------------------------------------------------------- SINGAPORE (0.8%) Cycle & Carriage 128,000 $ 388 Fraser & Neave 185,700 931 Singapore Telecommunications 260,000 222 -------- 1,541 -------- SPAIN (4.8%) Altadis 61,846 1,756 Banco Santander Central Hispano 171,526 1,388 Endesa 100,400 1,606 Gamesa Tecnologica (D) 13,600 302 Repsol 51,400 812 Sociedad General de Aguas de Barcelona 48,220 615 Telefonica 239,295 2,688 Union Fenosa (D) 39,074 593 -------- 9,760 -------- SWEDEN (2.1%) Autoliv (D) 50,097 1,270 Hennes & Mauritz 16,100 371 Sandvik 42,165 1,075 Svenska Handelsbanken 26,900 464 Swedish Match 67,352 542 Telefonaktiebolaget LM Ericsson 605,448 624 -------- 4,346 -------- SWITZERLAND (7.7%) Credit Suisse Group 41,442 1,120 Nestle 13,987 2,932 Novartis 129,974 5,094 Roche Holding 21,100 1,609 STMicroelectronics 33,987 769 UBS 46,732 2,519 Zurich Financial Services 12,600 1,529 -------- 15,572 -------- UNITED KINGDOM (24.9%) AstraZeneca 44,282 1,794 Balfour Beatty 145,903 469 BHP Billiton 168,402 876 BP 884,633 6,058 British American Tobacco 124,356 1,336 BT Group 568,418 1,793 Burberry Group 183,800 783 Emap 83,677 1,172 Galen Holdings 81,100 779 GlaxoSmithKline 228,054 4,502 HBOS 240,193 2,802 HSBC Holdings 387,200 4,574 Kelda Group 89,900 639 52 - -------------------------------------------------------------------------------- - -------------------------------------------------------------------------------- SHARES/FACE AMOUNT (000) VALUE (000) - -------------------------------------------------------------------------------- UNITED KINGDOM -- CONTINUED Kidde 765,032 $ 984 Legal & General Group 850,000 1,201 Marks & Spencer Group 148,402 695 Northern Rock 117,246 1,479 Rank Group 298,800 1,224 Rentokil Initial 333,614 984 Royal Bank of Scotland Group 129,906 3,373 Shell Transport & Trading 298,868 1,964 Shire Pharmaceuticals 124,600 846 Tesco 223,291 747 Unilever 125,600 1,119 United Utilities 80,600 811 Vodafone Group 2,841,748 6,169 Wimpey George 312,175 1,447 -------- 50,620 -------- Total Foreign Common Stock (Cost $188,678) 190,444 -------- EXCHANGE TRADED FUND (2.8%) iShares MSCI EAFE Index 53,860 5,723 -------- Total Exchange Traded Fund (Cost $5,498) 5,723 -------- SHORT-TERM INVESTMENT (9.2%) Boston Global Investment Trust -- Enhanced Portfolio (A) 18,604,126 18,604 -------- Total Short-Term Investment (Cost $18,604) 18,604 -------- CASH EQUIVALENTS (3.6%) Bank of America London, Time Deposit 2.45%, 06/02/03 (SEK) 1,188 153 Cayman, Time Deposit 3.55%, 06/02/03 (DKK) 324 51 3.77%, 06/02/03 (NOK) 856 128 4.42%, 06/02/03 (NZD) 14 8 2.45%, 06/02/03 (SEK) 852 110 Citibank London, Time Deposit 3.41%, 06/02/03 (AUD) 228 148 1.55%, 06/02/03 (EUR) 747 879 2.59%, 06/02/03 (GBP) 665 1,089 Citibank Nassau, Time Deposit 0.52%, 06/02/03 (USD) 4,711 4,711 -------- Total Cash Equivalents (Cost $7,277) 7,277 -------- Total Investments (109.3%) (Cost $220,057) $222,048 ======== Percentages are based on Net Assets of $203,127,121. - -------------------------------------------------------------------------------- - -------------------------------------------------------------------------------- At May 31, 2003, sector diversification of the Fund was as follows (Unaudited): % OF VALUE SECTOR DIVERSIFICATION NET ASSETS (000) - ---------------------- ---------- ---------- FOREIGN COMMON STOCK Apparel & Textiles 0.4% $ 783 Automotive 3.8 7,670 Banking 18.1 36,668 Chemicals 1.8 3,587 Construction 3.5 7,036 Containers 0.4 800 Cosmetics & Toiletries 0.5 975 Electronics 4.1 8,260 Energy 0.1 302 Finance 3.9 7,913 Food, Beverage & Tobacco 8.1 16,377 Health Care 9.8 19,994 Metals 1.0 2,052 Multimedia 2.5 5,102 Office Equipment 2.3 4,598 Oil & Gas 10.2 20,874 Operations 2.8 5,620 Photography Equipment 1.0 2,128 Publishing 0.6 1,172 Real Estate 0.7 1,324 Retail 1.7 3,639 Services 0.3 610 Technology 1.0 2,188 Telephones & Telecommunications 12.4 25,289 Transportation 1.8 3,715 Wholesale 0.9 1,768 ------ --------- TOTAL FOREIGN COMMON STOCK 93.7 190,444 EXCHANGE TRADED FUND 2.8 5,723 SHORT-TERM INVESTMENT 9.2 18,604 TOTAL CASH EQUIVALENTS 3.6 7,277 ------ -------- TOTAL INVESTMENTS 109.3 222,048 OTHER ASSETS & LIABILITIES, NET (9.3) (18,921) ------ -------- TOTAL NET ASSETS 100.0% $203,127 ====== ======== THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS. FOR DESCRIPTIONS OF ABBREVIATIONS AND FOOTNOTES, PLEASE SEE PAGE 83. 53 SCHEDULE OF INVESTMENTS - -------------------------------------------------------------------------------- STI CLASSIC EQUITY FUNDS MAY 31, 2003 INTERNATIONAL EQUITY INDEX FUND - -------------------------------------------------------------------------------- SHARES VALUE (000) - -------------------------------------------------------------------------------- FOREIGN COMMON STOCK (95.6%) AUSTRALIA (2.7%) Alumina 39,656 $ 111 Amcor 26,805 143 AMP 28,729 89 Australia & New Zealand Banking Group 38,885 470 Australian Gas Light 19,509 144 BHP Billiton 99,299 557 BHP Steel 34,569 76 Brambles Industries 29,180 86 Coca-Cola Amatil 20,682 74 Cochlear 2,438 49 Coles Myer 34,610 151 Commonwealth Bank of Australia 28,979 533 Computershare 20,087 22 CSL 5,655 44 CSR 43,122 52 Foster's Group 69,625 194 General Property Trust 89,550 180 Lend Lease 17,995 100 Macquarie Bank 8,055 146 Mayne Group 37,205 63 Mirvac Group 30,927 88 National Australia Bank 38,601 833 News Corp 43,386 329 QBE Insurance Group 26,224 153 Rinker Group 33,351 100 Rio Tinto 8,917 181 Santos 26,756 92 Southcorp 29,055 52 Stockland 41,098 142 Suncorp-Metway 22,088 162 Tabcorp Holdings 16,790 112 Telstra Corp 47,739 140 Wesfarmers 12,274 201 Westfield Holdings 15,189 151 Westfield Trust 96,972 229 Westpac Banking 40,768 433 WMC Resources 36,559 92 Woodside Petroleum 17,862 133 Woolworths 24,347 194 -------- 7,101 -------- AUSTRIA (1.4%) Bohler-Uddeholm (D) 3,106 167 Erste Bank der Oesterreichischen Sparkassen (D) 8,050 682 Flughafen Wien (D) 6,213 228 Immofinanz Immobilien Anlagen 44,811 324 Mayr-Melnhof Karton (D) 1,584 136 OMV (D) 5,109 571 - -------------------------------------------------------------------------------- SHARES VALUE (000) - -------------------------------------------------------------------------------- AUSTRIA -- CONTINUED Telekom Austria (D) 70,043 $ 771 VA Technologie (D) 3,892 114 Verbund -- Oesterreichische Elektrizitaetswirtschaf (D) 1,751 160 Voestalpine (D) 6,163 208 Wienerberger (D) 12,533 228 -------- 3,589 -------- BELGIUM (1.7%) AGFA-Gevaert 10,980 244 Bekaert (D) 1,895 89 Colruyt 2,208 152 D'ieteren 364 48 Delhaize Group 5,769 187 Dexia (D) 44,598 590 Electrabel (D) 2,151 547 Fortis (D) 72,287 1,194 Groupe Bruxelles Lambert 5,399 241 Interbrew 11,567 244 KBC Bancassurance Holding 6,582 274 Solvay (D) 5,076 392 UCB (D) 7,371 238 Umicore 1,933 89 -------- 4,529 -------- DENMARK (1.1%) D/S 1912 22 229 Dampskibsselskabet Svendborg 15 234 Danisco 4,359 166 Danske Bank 33,246 695 Group 4 Falck 6,336 109 H Lundbeck 5,500 107 ISS 3,878 133 Novo-Nordisk 17,970 628 Novozymes 5,570 158 TDC 9,200 269 Vestas Wind Systems 7,838 72 William Demant Holding 3,257 76 -------- 2,876 -------- FINLAND (0.9%) Nokia Oyj 101,250 1,822 Stora Enso Oyj 15,406 160 Tietoenator Oyj 3,169 55 UPM-Kymmene Oyj 11,700 163 -------- 2,200 -------- FRANCE (9.7%) Accor 10,296 387 Air Liquide (D) 4,899 748 Alcatel 56,168 515 Alstom 15,531 62 Aventis 31,055 1,621 54 - -------------------------------------------------------------------------------- - -------------------------------------------------------------------------------- SHARES VALUE (000) - -------------------------------------------------------------------------------- FRANCE -- CONTINUED AXA 64,136 $ 961 BNP Paribas 37,053 1,835 Bouygues 9,868 263 Cap Gemini (D) 5,325 185 Carrefour 26,632 1,192 Casino Guichard Perrachon 2,045 151 Cie de Saint-Gobain 14,306 542 Cie Generale D'Optique Essilor International (D) 6,230 253 Credit Agricole 15,412 323 Dassault Systemes 2,475 81 European Aeronautic Defense and Space (D) 14,396 160 France Telecom (D) 36,531 903 Groupe Danone (D) 5,803 798 L'Oreal 15,820 1,148 Lafarge (D) 6,038 384 Lagardere S.C.A. 6,749 278 LVMH Moet Hennessy Louis Vuitton 10,511 539 Michelin, Cl B (D) 7,093 259 Pechiney 3,675 106 Pernod-Ricard 3,191 317 Peugeot 9,444 432 Pinault-Printemps-Redoute 3,137 260 Publicis Groupe (D) 5,452 143 Renault 7,950 354 Sanofi-Synthelabo (D) 17,020 1,088 Schneider Electric 10,045 459 Societe BIC 2,837 108 Societe Generale 14,997 921 Societe Television Francaise 1 6,871 203 Sodexho Alliance 5,673 141 Suez (D) 37,305 634 Technip-Coflexip (D) 1,506 144 Thales 4,539 129 Thomson Multimedia (D) 9,442 162 Total (D) 30,350 4,444 Unibail 3,491 256 Valeo 4,076 113 Veolia Environnement 12,058 271 Vinci 3,579 246 Vivendi Universal 42,674 783 Wanadoo 21,048 159 -------- 25,461 -------- GERMANY (13.7%) Adidas-Salomon 5,115 450 Allianz (D) 27,702 2,098 Altana 7,583 469 BASF 57,169 2,478 Bayer 67,440 1,378 - -------------------------------------------------------------------------------- SHARES VALUE (000) - -------------------------------------------------------------------------------- GERMANY -- CONTINUED Bayerische Hypo-und Vereinsbank 34,515 $ 477 Beiersdorf 2,855 395 Buderus 4,531 158 Celesio 4,032 166 Commerzbank 44,479 488 Continental (D) 14,509 279 DaimlerChrysler 89,182 2,806 Deutsche Bank (D) 54,007 3,163 Deutsche Boerse 10,490 552 Deutsche Lufthansa (D) 21,827 235 Deutsche Post (D) 41,917 638 Deutsche Telekom 217,224 3,252 Douglas Holding 6,189 126 E.ON 60,404 3,111 Epcos 6,198 84 Fresenius Medical Care (D) 4,037 195 HeidelbergCement 3,555 96 Infineon Technologies (D) 45,681 409 KarstadtQuelle (D) 5,291 104 Linde (D) 9,191 305 MAN 12,486 213 Merck KGaA 6,208 211 Metro (D) 15,524 484 MLP (D) 6,418 79 Muenchener Rueckversicherungs 11,860 1,280 RWE (D) 37,316 1,084 SAP 21,281 2,389 Schering 17,547 924 Siemens 82,874 3,928 ThyssenKrupp 32,659 348 TUI (D) 15,725 206 Volkswagen 23,712 856 -------- 35,914 -------- GREECE (0.9%) Alpha Bank A.E. 20,600 320 Coca Cola Hellenic Bottling 10,600 159 Commercial Bank of Greece 8,200 116 EFG Eurobank Ergasias 19,700 265 Hellenic Petroleum 17,200 122 Hellenic Telecommunications Organization 27,300 287 Intracom 14,300 78 National Bank of Greece 21,300 346 Piraeus Bank 20,900 140 Public Power 8,700 139 Titan Cement 4,000 152 Viohalco 16,600 77 Vodafone-Panafon 23,800 153 -------- 2,354 -------- 55 SCHEDULE OF INVESTMENTS - -------------------------------------------------------------------------------- STI CLASSIC EQUITY FUNDS MAY 31, 2003 INTERNATIONAL EQUITY INDEX FUND--CONTINUED - -------------------------------------------------------------------------------- SHARES VALUE (000) - -------------------------------------------------------------------------------- HONG KONG (1.1%) Bank of East Asia 84,800 $ 160 Cheung Kong Holdings 59,000 359 CLP Holdings 73,100 315 Hang Seng Bank 27,600 294 Henderson Land Development 37,000 104 Hong Kong & China Gas 160,237 200 HongKong Electric Holdings 52,500 209 Hutchison Whampoa 76,080 463 Johnson Electric Holdings 69,500 82 Li & Fung 80,000 99 PCCW 76,326 50 Sun Hung Kai Properties 55,600 277 Swire Pacific 46,000 197 Wharf Holdings 65,000 125 -------- 2,934 -------- IRELAND (0.9%) Allied Irish Banks 60,965 912 Bank of Ireland 45,411 564 CRH 30,014 467 Elan 18,773 107 Irish Life & Permanent 14,393 178 Kerry Group 8,738 135 Ryanair Holdings 14,383 98 -------- 2,461 -------- ITALY (8.6%) Alleanza Assicurazioni (D) 45,753 465 Arnoldo Mondadori Editore (D) 18,346 139 Assicurazioni Generali (D) 90,120 2,145 Autogrill 15,772 170 Banca Fideuram (D) 30,040 164 Banca Intesa (D) 333,997 1,068 Banca Intesa 83,629 179 Banca Monte dei Paschi di Siena (D) 88,666 265 Banca Nazionale del Lavoro 149,724 260 Banca Popolare di Milano SCRL 47,661 211 Banco Popolare di Verona 38,347 575 Benetton Group 8,447 85 Bulgari (D) 18,101 93 Capitalia 116,135 194 Enel (D) 196,987 1,372 ENI-Ente Nazionale Idrocarburi (D) 247,680 3,997 Fiat (D) 25,258 205 FinecoGroup (D) 171,496 84 Finmeccanica 605,647 413 Italcementi (D) 11,705 122 Luxottica Group (D) 13,231 164 Mediaset (D) 60,812 556 Mediobanca 46,681 468 - -------------------------------------------------------------------------------- SHARES VALUE (000) - -------------------------------------------------------------------------------- ITALY -- CONTINUED Mediolanum (D) 25,766 $ 145 Parmalat Finanziaria (D) 46,288 136 Pirelli (D) 110,946 112 Riunione Adriatica di Sicurta (D) 30,291 471 Sanpaolo IMI (D) 94,032 876 Seat-Pagine Gialle 505,350 371 Snam Rete Gas (D) 91,702 355 Telecom Italia 224,292 2,073 Telecom Italia RNC (D) 190,093 1,062 TIM 360,135 1,885 Tiscali 19,365 97 UniCredito Italiano (D) 353,135 1,616 -------- 22,593 -------- JAPAN (27.5%) 77 Bank 29,000 123 Acom 4,930 169 Advantest 4,700 185 Aeon 15,500 373 Aiful 3,100 130 Ajinomoto 35,000 348 Alps Electric 12,000 139 Amada 21,000 53 Asahi Breweries 27,000 176 Asahi Glass 49,000 267 Asahi Kasei 85,000 242 Bank of Fukuoka (D) 45,000 174 Bank of Yokohama 68,000 232 Benesse 5,900 92 Bridgestone 42,000 544 Canon 54,000 2,257 Casio Computer (D) 22,000 132 Central Japan Railway 53 364 Chiba Bank 47,000 165 Chubu Electric Power 39,000 771 Chugai Pharmaceutical (D) 20,000 225 Citizen Watch 24,000 126 Credit Saison 9,500 167 CSK (D) 5,400 126 Dai Nippon Printing 41,000 422 Daido Life Insurance 85 192 Daiichi Pharmaceutical (D) 16,600 209 Daikin Industries 13,000 221 Dainippon Ink and Chemicals 68,000 110 Daito Trust Construction 7,100 150 Daiwa House Industry 31,000 198 Daiwa Securities Group 83,000 366 Denki Kagaku Kogyo 44,000 114 Denso 29,700 419 East Japan Railway 215 1,034 Ebara 25,000 74 Eisai 15,000 311 56 - -------------------------------------------------------------------------------- - -------------------------------------------------------------------------------- SHARES VALUE (000) - -------------------------------------------------------------------------------- JAPAN -- CONTINUED Fanuc 7,800 $ 352 Fast Retailing 3,900 132 Fuji Photo Film 30,000 830 Fuji Television Network 22 69 Fujikura 27,000 77 Fujisawa Pharmaceutical 18,000 327 Fujitsu 106,000 345 Furukawa Electric 42,000 104 Gunma Bank 26,000 129 Hirose Electric 2,500 189 Hitachi 182,000 709 Honda Motor 50,400 1,816 Hoya 7,400 465 Isetan 15,500 97 Ishikawajima-Harima Heavy Industries 86,000 76 Ito-Yokado 23,000 560 Itochu 99,000 202 Itochu Techno-Science 2,800 55 Japan Airlines System 50,000 98 Japan Tobacco 50 300 JFE Holdings 30,575 359 JGC 17,000 108 Joyo Bank 55,300 147 JSR 15,000 168 Kajima (D) 58,000 129 Kamigumi 24,000 112 Kaneka 22,000 121 Kansai Electric Power 40,500 660 Kao 33,000 607 Katokichi 4,800 78 Kawasaki Heavy Industries 115,000 93 Keihin Electric Express Railway (D) 42,000 203 Keio Electric Railway 42,000 198 Keyence 2,200 387 Kikkoman 17,000 110 Kinden 16,000 50 Kinki Nippon Railway (D) 90,250 219 Kirin Brewery 46,000 342 Kokuyo 8,300 63 Komatsu 68,000 250 Konami 6,900 111 Konica 23,000 211 Kubota 71,000 168 Kuraray 29,000 174 Kurita Water Industries 10,600 101 Kyocera 10,900 586 Kyowa Hakko Kogyo 26,000 129 Kyushu Electric Power 25,200 400 Lawson (D) 4,800 144 Mabuchi Motor 2,300 167 - -------------------------------------------------------------------------------- SHARES VALUE (000) - -------------------------------------------------------------------------------- JAPAN -- CONTINUED Makita (D) 13,000 $ 100 Marubeni 129,000 129 Marui 22,700 189 Matsushita Electric Industrial 132,880 1,209 Matsushita Electric Works (D) 27,000 150 Meiji Seika Kaisha 32,000 103 Meitec 3,900 115 Millea Holdings 89 644 Minebea 27,000 88 Mitsubishi 67,000 418 Mitsubishi Chemical 114,000 212 Mitsubishi Electric (D) 115,000 330 Mitsubishi Estate 64,000 391 Mitsubishi Heavy Industries 188,000 401 Mitsubishi Logistics 12,000 64 Mitsubishi Materials 67,000 64 Mitsubishi Rayon 47,000 119 Mitsubishi Tokyo Financial Group 247 929 Mitsui 79,000 365 Mitsui Chemicals 44,000 178 Mitsui Fudosan 48,000 283 Mitsui Mining & Smelting 43,000 111 Mitsui OSK Lines 71,000 189 Mitsui Sumitomo Insurance 82,340 370 Mitsukoshi (D) 37,000 92 Mizuho Financial Group (D) 365 212 Murata Manufacturing 15,300 592 NEC 90,000 370 NGK Insulators 21,000 112 NGK Spark Plug 14,000 98 Nidec 2,700 169 Nikko Cordial 92,000 278 Nikon 20,000 135 Nintendo 6,400 475 Nippon Comsys 13,000 52 Nippon Express 60,000 216 Nippon Meat Packers 13,000 124 Nippon Mining Holdings (D) 47,000 86 Nippon Oil 90,000 343 Nippon Sheet Glass 31,000 75 Nippon Steel 330,000 375 Nippon Telegraph & Telephone 337 1,161 Nippon Unipac Holding 55 188 Nippon Yusen Kabushiki Kaisha 72,000 232 Nissan Motor 162,400 1,280 Nisshin Seifun Group 17,000 120 Nissin Food Products 6,700 141 Nitto Denko 9,300 283 Nomura Holdings 115,000 1,168 NSK 37,000 99 NTT Data 87 218 57 SCHEDULE OF INVESTMENTS - -------------------------------------------------------------------------------- STI CLASSIC EQUITY FUNDS MAY 31, 2003 INTERNATIONAL EQUITY INDEX FUND--CONTINUED - -------------------------------------------------------------------------------- SHARES VALUE (000) - -------------------------------------------------------------------------------- JAPAN -- CONTINUED NTT DoCoMo 1,128 $ 2,367 Obayashi 47,000 140 OJI Paper 50,000 201 Olympus Optical 16,000 302 Omron 17,000 241 Onward Kashiyama 13,000 106 Oracle Corp Japan (D) 2,600 84 Oriental Land 3,800 157 ORIX 5,420 259 Osaka Gas 136,000 374 Pioneer 12,000 252 Promise 6,150 238 Resona Holdings (D) 314,000 171 Ricoh 41,000 610 Rohm 7,000 722 Sankyo 24,200 285 Sanyo Electric 101,000 322 Sapporo Breweries (D) 30,000 73 Secom 12,500 383 Sega 8,700 53 Sekisui Chemical 39,000 112 Sekisui House 32,000 240 Seven-Eleven Japan 27,000 675 Sharp 60,000 660 Shimamura 1,600 91 Shimano 8,400 137 Shimizu 42,000 103 Shin-Etsu Chemical 23,000 704 Shionogi 21,000 296 Shiseido 25,000 271 Shizuoka Bank 38,000 244 Showa Denko 84,000 139 Showa Shell Sekiyu 13,700 91 Skylark 7,700 93 SMC 3,400 260 Softbank 14,100 188 Sompo Japan Insurance 49,000 222 Sony 56,800 1,510 Stanley Electric 13,000 177 Sumitomo 52,000 220 Sumitomo Chemical 80,000 219 Sumitomo Electric Industries 39,000 247 Sumitomo Metal Industries 256,000 122 Sumitomo Metal Mining 37,000 139 Sumitomo Mitsui Financial Group (D) 236 391 Sumitomo Realty & Development (D) 29,000 103 Sumitomo Trust & Banking 66,000 187 Taiheiyo Cement 59,000 92 Taisei (D) 63,000 123 - -------------------------------------------------------------------------------- SHARES VALUE (000) - -------------------------------------------------------------------------------- JAPAN -- CONTINUED Taisho Pharmaceutical 12,000 $ 172 Taiyo Yuden 10,000 84 Takara Holdings (D) 17,000 84 Takashimaya 25,000 115 Takeda Chemical Industries 53,700 2,106 Takefuji 4,510 249 TDK 7,700 341 Teijin 60,000 135 Teikoku Oil 23,000 68 Terumo 12,500 201 THK (D) 8,400 95 Tobu Railway (D) 70,000 198 Toho (D) 15,400 133 Tohoku Electric Power 27,300 422 Tokyo Broadcasting System 4,200 44 Tokyo Electric Power 72,000 1,454 Tokyo Electron 10,000 412 Tokyo Gas 165,000 516 Tokyu 74,000 197 TonenGeneral Sekiyu 23,000 155 Toppan Printing 40,000 258 Toray Industries 89,000 195 Toshiba 176,000 534 Tosoh 46,000 106 Tostem Inax Holding 16,512 223 Toto 25,700 143 Toyo Seikan Kaisha 12,300 110 Toyobo 64,000 95 Toyota Industries 10,000 156 Toyota Motor 174,200 4,165 Trend Micro 7,000 120 Ube Industries 73,000 106 UFJ Holdings (D) 231 218 Uni-Charm 3,500 152 UNY 13,000 106 Wacoal 10,000 74 West Japan Railway 73 263 World 3,750 71 Yakult Honsha (D) 9,000 114 Yamada Denki 6,700 132 Yamaha 12,900 174 Yamaichi Securities 15,000 -- Yamanouchi Pharmaceutical 20,200 544 Yamato Transport 27,000 289 Yamazaki Baking (D) 14,000 96 Yokogawa Electric 21,000 142 -------- 71,935 -------- LUXEMBOURG (0.1%) Arcelor 16,122 179 -------- 58 - -------------------------------------------------------------------------------- - -------------------------------------------------------------------------------- SHARES VALUE (000) - -------------------------------------------------------------------------------- NETHERLANDS (3.0%) ABN AMRO Holding 40,475 $ 783 Aegon 34,928 330 Akzo Nobel 7,733 196 ASML Holding 13,151 130 Heineken 5,600 201 ING Groep 43,938 708 Koninklijke Ahold 23,207 174 Koninklijke Philips Electronics 35,372 691 Qiagen 16,294 154 Reed Elsevier 21,098 252 Royal Dutch Petroleum 54,342 2,457 Royal KPN 46,986 328 TPG 10,822 188 Unilever 14,882 870 VNU 7,670 223 Wolters Kluwer 10,237 129 -------- 7,814 -------- NEW ZEALAND (0.4%) Auckland International Airport 37,428 118 Carter Holt Harvey 82,300 75 Contact Energy 38,226 103 Fisher & Paykel Healthcare 11,033 70 Fletcher Building 54,884 111 Sky City Entertainment Group 32,576 159 Telecom Corp of New Zealand 126,022 386 Warehouse Group 18,390 46 -------- 1,068 -------- NORWAY (1.4%) DnB Holding 63,000 343 Gjensidige NOR 8,700 338 Norsk Hydro 21,140 935 Norske Skogindustrier 15,750 224 Orkla (D) 33,350 608 Statoil 60,000 524 Storebrand (D) 26,400 116 Tandberg 20,894 90 Telenor (D) 66,400 300 Tomra Systems 27,150 135 -------- 3,613 -------- PORTUGAL (0.9%) Banco BPI 69,684 197 Banco Comercial Portugues 195,723 320 Banco Espirito Santo 14,323 216 Brisa-Auto Estradas de Portugal 47,087 264 Cimpor Cimentos de Portugal 27,659 107 Electricidade de Portugal 218,837 466 Portugal Telecom SGPS 103,899 794 Sonae SGPS 193,715 93 -------- 2,457 -------- - -------------------------------------------------------------------------------- SHARES VALUE (000) - -------------------------------------------------------------------------------- SINGAPORE (0.5%) Chartered Semiconductor Manufacturing 49,000 $ 25 City Developments 28,000 64 DBS Group Holdings 41,467 234 Haw Par 7,839 17 Oversea-Chinese Banking 39,350 209 Singapore Airlines 27,000 149 Singapore Press Holdings 23,000 221 Singapore Telecommunications 228,000 195 United Overseas Bank 47,000 301 -------- 1,415 -------- SPAIN (4.7%) Abertis Infraestructuras 13,971 204 Acerinox 4,030 153 ACS Actividades Construccion y Servicios 3,846 161 Altadis 18,023 512 Banco Bilbao Vizcaya Argentaria (D) 172,010 1,699 Banco Popular Espanol 9,251 490 Banco Santander Central Hispano 241,015 1,950 Endesa 53,095 849 Fomento de Construcciones y Contratas 4,531 125 Gas Natural SDG 12,856 262 Grupo Dragados 9,205 185 Iberdrola 44,882 784 Inditex 12,752 287 Repsol 55,392 876 Sacyr Vallehermoso 9,342 104 Sociedad General de Aguas de Barcelona 5,682 72 Telefonica 271,014 3,044 Terra Networks 25,422 162 Union Fenosa (D) 13,060 198 Zeltia (D) 11,877 108 -------- 12,225 -------- SWEDEN (1.7%) Assa Abloy 12,000 117 Atlas Copco 5,600 134 Electrolux 13,500 257 Gambro 11,600 67 Hennes & Mauritz 18,500 426 Nordea 87,000 442 Sandvik 9,400 240 Securitas 13,400 136 Skandia Forsakrings 40,900 115 Skandinaviska Enskilda Banken 21,400 227 Skanska 19,600 106 59 SCHEDULE OFINVESTMENTS - -------------------------------------------------------------------------------- STI CLASSIC EQUITY FUNDS MAY 31, 2003 INTERNATIONAL EQUITY INDEX FUND--CONCLUDED - -------------------------------------------------------------------------------- SHARES VALUE (000) - -------------------------------------------------------------------------------- SWEDEN -- CONTINUED SKF 4,700 $ 130 Svenska Cellulosa 6,700 231 Svenska Handelsbanken 19,800 342 Swedish Match 15,100 122 Tele2 4,950 188 Telefonaktiebolaget LM Ericsson 548,800 565 TeliaSonera 64,000 252 Volvo 9,650 204 -------- 4,301 -------- SWITZERLAND (2.0%) ABB 16,464 52 Adecco 2,073 77 Compagnie Financiere Richemont 7,410 118 Credit Suisse Group 13,693 370 Holcim 410 70 Nestle 4,251 891 Novartis 26,557 1,041 Roche Holding (D) 8,329 657 STMicroelectronics 27,513 623 Swiss Reinsurance 3,356 216 Swisscom 375 113 Syngenta 2,152 110 UBS 13,909 750 Zurich Financial Services 1,624 196 -------- 5,284 -------- UNITED KINGDOM (10.7%) 3i Group 15,165 146 Amersham 17,289 133 Amvescap 14,613 89 ARM Holdings 33,243 42 AstraZeneca 31,288 1,268 Aviva 40,880 298 AWG 536,112 1 BAA 24,465 196 BAE Systems 56,559 120 Barclays 116,259 819 BG Group 72,549 322 BHP Billiton 48,542 253 BOC Group 12,833 162 Boots Group 19,447 199 BP 397,545 2,723 Brambles Industries 23,351 61 British American Tobacco 32,229 346 British Land 15,639 123 British Sky Broadcasting 25,359 275 BT Group 155,439 490 Cable & Wireless 47,663 80 Cadbury Schweppes 37,819 220 - -------------------------------------------------------------------------------- SHARES VALUE (000) - -------------------------------------------------------------------------------- UNITED KINGDOM -- CONTINUED Canary Wharf Group 15,185 $ 45 Capita Group 20,590 79 Carnival 4,408 124 Celltech Group 8,578 47 Centrica 84,326 246 Compass Group 50,303 275 Diageo 57,434 616 Dixons Group 44,529 84 Electrocomponents 14,159 74 EMI Group 25,656 52 Exel 9,691 106 GKN 23,726 80 GlaxoSmithKline 106,794 2,108 Granada 73,580 107 GUS 21,884 225 Hanson 17,664 102 Hays 50,670 67 HBOS 70,578 823 Hilton Group 47,861 134 HSBC Holdings 188,024 2,221 Imperial Chemical Industries 28,556 64 Imperial Tobacco Group 15,815 285 Intercontinental Hotels Group 20,714 147 International Power 32,977 66 Invensys 113,861 32 J Sainsbury 30,952 137 Johnson Matthey 6,178 89 Kingfisher 54,530 228 Land Securities Group 13,594 182 Legal & General Group 115,823 164 Lloyds TSB Group 92,980 682 LogicaCMG 18,962 43 Marks & Spencer Group 45,537 213 Mitchells & Butlers 23,893 83 National Grid Transco 57,305 370 Pearson 19,169 179 Peninsular and Oriental Steam Navigation 22,197 84 Provident Financial 8,271 85 Prudential 36,170 225 Reckitt Benckiser 12,173 237 Reed Elsevier 28,391 233 Rentokil Initial 44,742 132 Reuters Group 30,832 92 Rio Tinto 19,871 389 Royal & Sun Alliance Insurance Group 29,279 68 Royal Bank of Scotland Group 49,121 1,276 Sage Group 33,922 89 Scottish & Newcastle 19,193 120 Scottish & Southern Energy 19,847 206 Scottish Power 40,884 242 60 - -------------------------------------------------------------------------------- - -------------------------------------------------------------------------------- SHARES/FACE AMOUNT (000) VALUE (000) - -------------------------------------------------------------------------------- Shell Transport & Trading 170,524 $ 1,120 Smith & Nephew 23,240 141 Smiths Group 15,319 167 Tesco 133,047 445 Unilever 51,928 463 United Utilities 17,847 180 Vodafone Group 1,231,501 2,673 Wolseley 15,140 164 WPP Group 23,967 192 -------- 27,968 -------- Total Foreign Common Stock (Cost $294,810) 250,271 -------- FOREIGN PREFERRED STOCK (0.7%) AUSTRALIA (0.2%) News Corp 61,236 389 -------- GERMANY (0.5%) Henkel KGaA 6,278 408 Porsche 929 356 ProSieben SAT.1 Media 12,064 60 Volkswagen 11,680 299 Wella 2,635 206 -------- 1,329 -------- Total Foreign Preferred Stock (Cost $2,012) 1,718 -------- EXCHANGE TRADED FUND (2.4%) iShares MSCI EAFE Index 57,883 6,150 -------- Total Exchange Traded Fund (Cost $5,275) 6,150 -------- SHORT-TERM INVESTMENT (19.7%) Boston Global Investment Trust -- Enhanced Portfolio (A) 51,638,410 51,638 -------- Total Short-Term Investment (Cost $51,638) 51,638 -------- CASH EQUIVALENTS (1.2%) Cayman, Time Deposit 3.41%, 06/02/03 (AUD) 131 85 3.55%, 06/02/03 (DKK) 358 57 3.77%, 06/02/03 (NOK) 1,309 196 4.42%, 06/02/03 (NZD) 31 18 2.45%, 06/02/03 (SEK) 773 99 (Cost $94,537) Citibank London, Time Deposit 1.55%, 06/02/03 (EUR) 1,021 1,200 Citibank Nassau, Time Deposit 0.52%, 06/02/03 (USD) 1,088 1,088 - -------------------------------------------------------------------------------- FACE AMOUNT (000) VALUE (000) - -------------------------------------------------------------------------------- CASH EQUIVALENTS -- CONTINUED JPMorgan Chase London, Time Deposit 2.59%, 06/02/03 (GBP) 203 $ 333 -------- Total Cash Equivalents (Cost $3,076) 3,076 -------- Total Investments (119.6%) (Cost $356,811) $312,853 ======== Percentages are based on Net Assets of $261,739,824. At May 31, 2003, sector diversification of the Fund was as follows (Unaudited): % OF VALUE SECTOR DIVERSIFICATION NET ASSETS (000) - ---------------------------- ------------ ---------- FOREIGN COMMON STOCK Aerospace & Defense 0.3% $ 822 Apparel & Textiles 0.5 1,313 Automotive 5.4 14,022 Banking 15.1 39,532 Chemicals 2.8 7,314 Construction 2.3 5,993 Containers 0.1 143 Cosmetics & Toiletries 1.1 2,810 Electronics 9.4 24,484 Entertainment 1.1 3,009 Finance 6.6 17,380 Food, Beverage & Tobacco 5.4 14,204 Health Care 6.6 17,563 Machinery 1.0 2,516 Metals 1.7 4,535 Multimedia 2.1 5,383 Office Equipment 1.2 3,038 Oil & Gas 8.3 21,904 Operations 2.6 6,731 Paper & Related Products 0.5 1,378 Photographic Equipment 0.7 1,722 Printing 0.3 680 Publishing 0.5 1,198 Real Estate 1.4 3,568 Retail 2.5 6,562 Semiconductors 0.1 131 Services 0.8 2,205 Technology 1.8 4,777 Telephones & Telecommunications 10.3 27,174 Transportation 2.5 6,519 Wholesale 0.6 1,661 -------- --------- TOTAL FOREIGN COMMON STOCK 95.6 250,271 TOTAL FOREIGN PREFERRED STOCK 0.7 1,718 EXCHANGE TRADED FUND 2.4 6,150 SHORT-TERM INVESTMENT 19.7 51,638 TOTAL CASH EQUIVALENTS 1.2 3,076 -------- --------- TOTAL INVESTMENTS 119.6 312,853 OTHER ASSETS AND LIABILITIES, NET (19.6) (51,113) -------- --------- TOTAL NET ASSETS 100.0% $ 261,740 -------- --------- THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS. FOR DESCRIPTIONS OF ABBREVIATIONS AND FOOTNOTES, PLEASE SEE PAGE 83. 61 STATEMENT OF NET ASSETS - -------------------------------------------------------------------------------- STI CLASSIC EQUITY FUNDS MAY 31, 2003 LIFE VISION AGGRESSIVE GROWTH FUND - -------------------------------------------------------------------------------- SHARES VALUE (000) - -------------------------------------------------------------------------------- EQUITY FUNDS (96.6%) STI Classic Capital Appreciation Fund, Trust Shares 864,424 $ 9,526 STI Classic Growth and Income Fund, Trust Shares 394,536 4,817 STI Classic International Equity Index Fund, Trust Shares 575,893 4,832 STI Classic Mid-Cap Equity Fund, Trust Shares 69,213 605 STI Classic Small Cap Growth Stock Fund, Trust Shares 145,869 2,216 STI Classic Small Cap Value Equity Fund, Trust Shares 137,007 1,881 STI Classic Value Income Stock Fund, Trust Shares 497,550 4,841 -------- Total Equity Funds (Cost $30,694) 28,718 -------- MONEY MARKET FUND (3.1%) STI Classic Prime Quality Money Market Fund, Trust Shares 927,003 927 -------- Total Money Market Fund (Cost $927) 927 -------- Total Investments (99.7%) (Cost $31,621) 29,645 -------- OTHER ASSETS AND LIABILITIES (0.3%) Investment Advisory Fees Payable (3) Administration Fees Payable (2) Other Assets and Liabilities, Net 93 -------- Total Other Assets and Liabilities 88 -------- - -------------------------------------------------------------------------------- VALUE (000) - -------------------------------------------------------------------------------- NET ASSETS: Paid in Capital -- Trust Shares (unlimited authorization -- no par value) based on 3,355,014 outstanding shares of beneficial interest $33,533 Paid in Capital -- B Shares (unlimited authorization -- no par value) based on 123,246 outstanding shares of beneficial interest 974 Accumulated net realized loss on investments (2,798) Net unrealized depreciation on investments (1,976) ------- Total Net Assets (100.0%) $29,733 ======= Net Asset Value, Offering and Redemption Price Per Share -- Trust Shares ($28,681,476 / 3,355,014 shares) $8.55 ======= Net Asset Value and Offering Price Per Share -- B Shares (1) ($1,051,619 / 123,246 shares) $8.53 ======= THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS. FOR DESCRIPTIONS OF ABBREVIATIONS AND FOOTNOTES, PLEASE SEE PAGE 83. 62 - -------------------------------------------------------------------------------- LIFE VISION CONSERVATIVE FUND - -------------------------------------------------------------------------------- SHARES VALUE (000) - -------------------------------------------------------------------------------- EQUITY FUNDS (30.5%) STI Classic Capital Appreciation Fund, Trust Shares 2,183 $ 24 STI Classic Growth and Income Fund, Trust Shares 1,990 24 STI Classic International Equity Index Fund, Trust Shares 5,733 48 STI Classic Mid-Cap Equity Fund, Trust Shares 3,775 33 STI Classic Small Cap Growth Stock Fund, Trust Shares 3,279 50 STI Classic Small Cap Value Equity Fund, Trust Shares 2,375 33 STI Classic Value Income Stock Fund, Trust Shares 3,345 32 ------ Total Equity Funds (Cost $230) 244 ------ FIXED INCOME FUNDS (64.0%) STI Classic Investment Grade Bond Fund, Trust Shares 3,604 40 STI Classic Limited-Term Federal Mortgage Securities Fund, Trust Shares 44,571 472 ------ Total Fixed Income Funds (Cost $508) 512 ------ MONEY MARKET FUND (4.9%) STI Classic Prime Quality Money Market Fund, Trust Shares 39,233 39 ------ Total Money Market Fund (Cost $39) 39 ------ Total Investments (99.4%) (Cost $777) 795 ------ OTHER ASSETS AND LIABILITIES, NET (0.6%) 5 ------ - -------------------------------------------------------------------------------- VALUE (000) - -------------------------------------------------------------------------------- NET ASSETS: Paid in Capital -- B Shares (unlimited authorization -- no par value) based on 76,728 outstanding shares of beneficial interest $ 781 Undistributed net investment income 1 Net unrealized appreciation on investments 18 ------ Total Net Assets (100.0%) $ 800 ------ Net Asset Value and Offering Price Per Share -- B Shares (1) ($800,068 / 76,728 shares) $10.43 ====== THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS. FOR DESCRIPTIONS OF ABBREVIATIONS AND FOOTNOTES, PLEASE SEE PAGE 83. 63 STATEMENT OF NET ASSETS - -------------------------------------------------------------------------------- STI CLASSIC EQUITY FUNDS MAY 31, 2003 LIFE VISION GROWTH AND INCOME FUND - -------------------------------------------------------------------------------- SHARES VALUE (000) - -------------------------------------------------------------------------------- EQUITY FUNDS (74.5%) STI Classic Capital Appreciation Fund, Trust Shares 590,720 $ 6,510 STI Classic Growth and Income Fund, Trust Shares 805,931 9,840 STI Classic International Equity Index Fund, Trust Shares 1,063,188 8,920 STI Classic Mid-Cap Equity Fund, Trust Shares 143,503 1,254 STI Classic Small Cap Growth Stock Fund, Trust Shares 352,628 5,357 STI Classic Small Cap Value Equity Fund, Trust Shares 293,256 4,026 STI Classic Value Income Stock Fund, Trust Shares 1,016,208 9,888 ------- Total Equity Funds (Cost $45,873) 45,795 ------- FIXED INCOME FUNDS (22.2%) STI Classic High Income Fund, Trust Shares 835,818 5,984 STI Classic Investment Grade Bond Fund, Trust Shares 381,497 4,174 STI Classic Limited-Term Federal Mortgage Securities Fund, Trust Shares 330,198 3,497 ------- Total Fixed Income Funds (Cost $12,840) 13,655 ------- MONEY MARKET FUND (3.2%) STI Classic Prime Quality Money Market Fund, Trust Shares 1,925,524 1,926 ------- Total Money Market Fund (Cost $1,926) 1,926 ------- Total Investments (99.9%) (Cost $60,639) 61,376 ------- OTHER ASSETS AND LIABILITIES (0.1%) Investment Advisory Fees Payable (7) Administration Fees Payable (3) Distribution Fees Payable (1) Other Assets and Liabilities, Net 101 ------- Total Other Assets and Liabilities 90 ------- - -------------------------------------------------------------------------------- VALUE (000) - -------------------------------------------------------------------------------- NET ASSETS: Paid in Capital -- Trust Shares (unlimited authorization -- no par value) based on 6,371,070 outstanding shares of beneficial interest $66,506 Paid in Capital -- B Shares (unlimited authorization -- no par value) based on 216,052 outstanding shares of beneficial interest 1,894 Undistributed net investment income 117 Accumulated net realized loss on investments (7,788) Net unrealized appreciation on investments 737 ------- Total Net Assets (100.0%) $61,466 ======= Net Asset Value, Offering and Redemption Price Per Share -- Trust Shares ($59,448,746 / 6,371,070 shares) $9.33 ===== Net Asset Value and Offering Price Per Share -- B Shares (1) ($2,017,153 / 216,052 shares) $9.34 ====== THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS. FOR DESCRIPTIONS OF ABBREVIATIONS AND FOOTNOTES, PLEASE SEE PAGE 83. 64 - -------------------------------------------------------------------------------- LIFE VISION MODERATE GROWTH FUND - -------------------------------------------------------------------------------- SHARES VALUE (000) - -------------------------------------------------------------------------------- EQUITY FUNDS (61.0%) STI Classic Capital Appreciation Fund, Trust Shares 1,208,428 $13,317 STI Classic Growth and Income Fund, Trust Shares 547,418 6,684 STI Classic International Equity Index Fund, Trust Shares 1,831,371 15,365 STI Classic Mid-Cap Equity Fund, Trust Shares 209,585 1,832 STI Classic Small Cap Growth Stock Fund, Trust Shares 593,077 9,009 STI Classic Small Cap Value Equity Fund, Trust Shares 424,421 5,827 STI Classic Value Income Stock Fund, Trust Shares 695,321 6,765 ------- Total Equity Funds (Cost $58,110) 58,799 ------- FIXED INCOME FUNDS (38.6%) STI Classic High Income Fund, Trust Shares 1,355,618 9,706 STI Classic Investment Grade Bond Fund, Trust Shares 1,148,443 12,564 STI Classic Limited-Term Federal Mortgage Securities Fund, Trust Shares 1,413,214 14,966 ------- Total Fixed Income Funds (Cost $34,579) 37,236 ------- MONEY MARKET FUND (0.2%) STI Classic Prime Quality Money Market Fund, Trust Shares 158,636 159 ------- Total Money Market Fund (Cost $159) 159 ------- Total Investments (99.8%) (Cost $92,848) 96,194 ------- OTHER ASSETS AND LIABILITIES (0.2%) Investment Advisory Fees Payable (11) Administration Fees Payable (6) Distribution Fees Payable (1) Custody Fees Payable (1) Other Assets and Liabilities, Net 238 ------- Total Other Assets and Liabilities 219 ------- - -------------------------------------------------------------------------------- VALUE (000) - -------------------------------------------------------------------------------- NET ASSETS: Paid in Capital -- Trust Shares (unlimited authorization -- no par value) based on 10,392,203 outstanding shares of beneficial interest $98,780 Paid in Capital -- B Shares (unlimited authorization -- no par value) based on 298,901 outstanding shares of beneficial interest 2,547 Undistributed net investment income 279 Accumulated net realized loss on investments (8,539) Net unrealized appreciation on investments 3,346 ------- Total Net Assets (100.0%) $96,413 ======= Net Asset Value, Offering and Redemption Price Per Share -- Trust Shares ($93,722,042 / 10,392,203 shares) $9.02 ======= Net Asset Value and Offering Price Per Share -- B Shares (1) ($2,690,852 / 298,901 shares) $9.00 ======= THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS. FOR DESCRIPTIONS OF ABBREVIATIONS AND FOOTNOTES, PLEASE SEE PAGE 83. 65 STATEMENT OF NET ASSETS - -------------------------------------------------------------------------------- STI CLASSIC EQUITY FUNDS MAY 31, 2003 MID-CAP EQUITY FUND - -------------------------------------------------------------------------------- SHARES VALUE (000) - -------------------------------------------------------------------------------- COMMON STOCK (93.8%) BASIC MATERIALS (2.3%) Lubrizol 39,000 $ 1,244 Nucor 19,400 924 Rohm & Haas 33,500 1,087 -------- 3,255 -------- CAPITAL GOODS (9.8%) Autoliv 32,300 831 Crane 57,200 1,194 Delphi 109,500 966 Eaton 23,300 1,956 Goodrich 65,100 1,189 Harsco 39,000 1,380 Hubbell, Cl B 35,000 1,178 Jabil Circuit* (D) 57,115 1,199 KB Home 18,100 1,131 Sonoco Products 40,200 903 Textron 35,000 1,220 Toro 21,100 843 -------- 13,990 -------- COMMUNICATION SERVICES (1.9%) Advanced Fibre Communication* 36,300 685 CenturyTel 23,355 786 Harris 28,400 860 Qwest Communications International* 83,300 374 -------- 2,705 -------- COMPUTER SOFTWARE (4.9%) BMC Software* 31,125 528 Computer Associates International 38,925 844 Intuit* 33,770 1,556 Peoplesoft* 24,500 401 Quest Software* 35,000 391 Siebel Systems* 67,660 635 Storage Technology* 24,500 661 Symantec* (D) 7,840 355 Veritas Software* (D) 57,235 1,588 -------- 6,959 -------- CONSUMER CYCLICALS (12.6%) Autonation* 78,100 1,087 Autozone* 9,200 770 Borders Group* 41,600 684 CDW Computer Centers* (D) 7,850 320 Centex 19,400 1,506 Eastman Kodak (D) 37,700 1,155 Federated Department Stores* 23,300 757 Hasbro 44,100 706 - -------------------------------------------------------------------------------- SHARES VALUE (000) - -------------------------------------------------------------------------------- CONSUMER CYCLICALS -- CONTINUED Mattel 39,000 $ 839 Newell Rubbermaid 13,100 373 Pitney Bowes (D) 63,300 2,431 Polo Ralph Lauren* 29,900 792 RadioShack 24,500 591 RR Donnelley & Sons (D) 61,200 1,527 Staples* 52,180 1,012 VF 35,000 1,333 Xerox* (D) 58,500 639 Zale* 37,700 1,370 -------- 17,892 -------- CONSUMER STAPLES (3.2%) Archer-Daniels-Midland 36,290 434 Clorox 19,400 866 RJ Reynolds Tobacco Holdings 16,000 545 Starbucks* 28,400 700 UST 30,800 1,088 Weis Markets 27,200 868 -------- 4,501 -------- ENERGY (7.9%) Amerada Hess 37,700 1,847 Ashland 59,800 1,941 Diamond Offshore Drilling 87,300 1,985 Halliburton 59,800 1,428 Helmerich & Payne (D) 36,300 1,121 Marathon Oil 79,500 2,046 Tidewater (D) 27,200 898 -------- 11,266 -------- FINANCE (19.7%) Annaly Mortgage Management REIT (D) 71,600 1,401 Archstone-Smith Trust REIT 19,400 461 Bear Stearns 27,200 2,102 Cigna (D) 20,700 1,161 Colonial Properties Trust REIT 46,100 1,614 Comerica 48,100 2,226 Commerce Bancshares 28,400 1,149 Countrywide Financial 18,190 1,340 Duke Realty REIT 14,325 407 Equity Residential REIT 27,200 720 First Citizens Bancshares, Cl A 14,977 1,515 First Industrial Realty Trust REIT 69,000 2,080 Greenpoint Financial 14,400 730 Lincoln National 35,000 1,218 Simon Property Group REIT 16,700 628 St. Paul 36,300 1,328 Stancorp Financial Group 18,100 978 Staten Island Bancorp 66,300 1,278 66 - -------------------------------------------------------------------------------- - -------------------------------------------------------------------------------- SHARES VALUE (000) - -------------------------------------------------------------------------------- FINANCE -- CONTINUED UnionBanCal 14,400 $ 608 Unitrin 77,300 2,024 UnumProvident 14,200 183 Webster Financial 55,900 2,116 Willis Group Holdings Ltd. 24,450 773 -------- 28,040 -------- HEALTH CARE (10.1%) Anthem* 8,300 609 Beckman Coulter (D) 31,100 1,264 Becton Dickinson 24,500 980 Caremark Rx* 32,300 729 Express Scripts* (D) 11,800 772 Genzyme* 27,500 1,306 Gilead Sciences* (D) 16,730 883 Guidant* 23,300 985 Inamed* 21,400 1,103 Laboratory Corp of America Holdings* 24,500 788 Martek Biosciences* 2,500 94 Medimmune* 13,100 464 Millennium Pharmaceuticals* 43,300 673 Oxford Health Plans* 16,300 604 Protein Design Labs* 45,600 653 St. Jude Medical* 24,500 1,374 WellPoint Health Networks* 9,200 785 Zimmer Holdings* 5,900 265 -------- 14,331 -------- SEMICONDUCTORS (3.7%) Altera* 84,700 1,633 Arrow Electronics* 59,795 1,019 Emulex* 11,815 292 Intersil, Cl A* 59,300 1,449 Molex (D) 31,150 852 -------- 5,245 -------- SERVICES (4.6%) Deluxe 29,900 1,404 GTECH Holdings* 16,705 587 H&R Block 31,100 1,273 Harte-Hanks 66,300 1,213 Public Storage REIT 6,520 223 ServiceMaster 96,400 1,025 USA Interactive* (D) 23,300 896 -------- 6,621 -------- TECHNOLOGY (4.1%) Avnet* (D) 57,200 778 Avocent* (D) 21,900 647 Computer Sciences* (D) 28,400 1,128 Lexmark International* 6,600 491 Network Associates* 18,040 219 - -------------------------------------------------------------------------------- SHARES/FACE AMOUNT (000) VALUE (000) - -------------------------------------------------------------------------------- TECHNOLOGY -- CONTINUED Novellus Systems* (D) 41,600 $ 1,441 Yahoo!* (D) 36,300 1,084 -------- 5,788 -------- TRANSPORTATION (0.8%) Burlington Northern Santa Fe 37,700 1,112 -------- UTILITIES (8.2%) Citizens Communications* (D) 78,100 962 Edison International* 46,880 763 Great Plains Energy 40,205 1,158 NiSource 66,300 1,300 OGE Energy 139,620 2,949 Pinnacle West Capital 36,300 1,374 PPL 454 18 Public Service Enterprise Group 49,400 2,111 Xcel Energy 62,600 964 -------- 11,599 -------- Total Common Stock (Cost $117,895) 133,304 -------- EXCHANGE TRADED FUND (4.7%) Midcap SPDR Trust, Ser 1 76,530 6,668 -------- Total Exchange Traded Fund (Cost $6,097) 6,668 -------- SHORT-TERM INVESTMENT (12.3%) Boston Global Investment Trust -- Enhanced Portfolio (A) 17,512,660 17,513 -------- Total Short-Term Investment (Cost $17,513) 17,513 -------- REPURCHASE AGREEMENT (2.9%) UBS Paine Webber 1.289%, dated 05/30/03, matures 06/02/03, repurchase price $4,182,638 (collateralized by a FHLB obligation: total market value $4,270,327) (C) $4,182 4,182 -------- Total Repurchase Agreement (Cost $4,182) 4,182 -------- Total Investments (113.7%) (Cost $145,687) 161,667 -------- 67 STATEMENT OF NET ASSETS - -------------------------------------------------------------------------------- STI CLASSIC EQUITY FUNDS MAY 31, 2003 MID-CAP EQUITY FUND--CONCLUDED - -------------------------------------------------------------------------------- VALUE (000) - -------------------------------------------------------------------------------- OTHER ASSETS AND LIABILITIES (-13.7%) Payable Upon Return of Securities Loaned $(17,513) Investment Advisory Fees Payable (128) Administration Fees Payable (8) Distribution Fees Payable (9) Custody Fees Payable (2) Other Assets and Liabilities, Net (1,765) -------- Total Other Assets and Liabilities (19,425) -------- NET ASSETS: Paid in Capital -- Trust Shares (unlimited authorization -- no par value) based on 13,515,607 outstanding shares of beneficial interest 145,318 Paid in Capital -- Investor Shares (unlimited authorization -- no par value) based on 1,440,979 outstanding shares of beneficial interest 14,016 Paid in Capital -- Flex Shares (unlimited authorization -- no par value) based on 1,516,873 outstanding shares of beneficial interest 18,468 Accumulated net realized loss on investments (51,540) Net unrealized appreciation on investments 15,980 -------- Total Net Assets (100.0%) $142,242 ======== - -------------------------------------------------------------------------------- VALUE - -------------------------------------------------------------------------------- Net Asset Value, Offering and Redemption Price Per Share -- Trust Shares ($118,091,766 / 13,515,607 shares) $8.74 ======== Net Asset Value and Redemption Price Per Share -- Investor Shares ($12,136,825 / 1,440,979 shares) $8.42 ======== Maximum Offering Price Per Share -- Investor Shares ($8.42 / 96.25%) $8.75 ======== Net Asset Value and Offering Price Per Share -- Flex Shares (1) ($12,013,432 / 1,516,873 shares) $7.92 ======== THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS. FOR DESCRIPTIONS OF ABBREVIATIONS AND FOOTNOTES, PLEASE SEE PAGE 83. 68 - -------------------------------------------------------------------------------- MID CAP VALUE EQUITY FUND - -------------------------------------------------------------------------------- SHARES VALUE (000) - -------------------------------------------------------------------------------- COMMON STOCK (91.9%) BASIC MATERIALS (10.2%) Abitibi-Consolidated 205,700 $ 1,395 Boise Cascade (D) 97,400 2,393 Lubrizol 42,800 1,365 Nucor 31,700 1,510 PPG Industries 33,000 1,605 Sappi ADR 65,000 803 United States Steel 107,200 1,688 -------- 10,759 -------- CAPITAL GOODS (12.6%) Dover 48,900 1,482 Eaton 11,900 999 Empresa Brasileira de Aeronautica ADR (D) 217,400 3,207 Masco 27,600 679 Pall 31,100 675 Pentair 49,200 1,912 Raytheon 27,800 891 Rockwell Collins 79,900 1,836 Sonoco Products 51,400 1,155 W.W. Grainger 11,100 518 -------- 13,354 -------- COMMUNICATION SERVICE (1.8%) CenturyTel (D) 57,900 1,950 -------- COMPUTER SOFTWARE (1.2%) Apple Computer* 39,900 717 Diebold 13,600 543 -------- 1,260 -------- CONSUMER CYCLICALS (14.9%) Abercrombie & Fitch, Cl A* 13,900 397 Blyth 9,100 251 Darden Restaurants 54,200 1,074 Dollar Tree Stores* (D) 56,100 1,627 Fortune Brands 22,400 1,174 Knight-Ridder 23,300 1,641 Limited Brands 95,100 1,451 Magna International, Cl A 20,300 1,362 Newell Rubbermaid 31,100 886 Pitney Bowes (D) 41,100 1,578 Polo Ralph Lauren* 21,300 564 RR Donnelley & Sons 64,800 1,617 Starwood Hotels & Resorts Worldwide (D) 19,800 574 VF 39,500 1,504 -------- 15,700 -------- - -------------------------------------------------------------------------------- SHARES VALUE (000) - -------------------------------------------------------------------------------- CONSUMER STAPLES (3.8%) HJ Heinz 46,500 $ 1,538 PepsiAmericas 80,600 1,048 Supervalu 69,200 1,373 -------- 3,959 -------- ENERGY (10.1%) Diamond Offshore Drilling (D) 79,900 1,817 GlobalSantaFe 58,100 1,446 Noble Energy 43,100 1,570 Tidewater (D) 71,400 2,358 Transocean* 80,200 1,874 Valero Energy 42,400 1,590 -------- 10,655 -------- FINANCE (16.1%) AMBAC Financial Group 10,700 714 Banknorth Group 58,800 1,506 Charter One Financial 72,080 2,196 Hartford Financial Services Group 27,000 1,259 Janus Capital Group 121,600 1,891 Keycorp 108,400 2,862 Lincoln National 29,200 1,016 PNC Financial Services Group 21,900 1,079 Protective Life 39,600 1,092 St. Paul 25,500 933 Wilmington Trust 48,500 1,406 Zions Bancorporation 21,000 1,071 -------- 17,025 -------- HEALTH CARE (5.0%) Becton Dickinson 20,300 812 Health Management Associates, Cl A 14,300 267 IVAX* 88,600 1,534 Manor Care* 46,100 1,092 Shire Pharmaceuticals ADR* 40,300 836 Steris* 34,500 778 -------- 5,319 -------- SERVICES (5.1%) Allied Waste Industries* (D) 167,000 1,650 Omnicom Group (D) 7,600 530 Pittson Brink's Group 141,200 2,235 Viad 48,900 991 -------- 5,406 -------- 69 STATEMENT OF NET ASSETS - -------------------------------------------------------------------------------- STI CLASSIC EQUITY FUNDS MAY 31, 2003 MID CAP VALUE EQUITY FUND--CONCLUDED - -------------------------------------------------------------------------------- SHARES/FACE AMOUNT (000) VALUE (000) - -------------------------------------------------------------------------------- TECHNOLOGY (7.1%) Advanced Micro Devices* 122,500 $ 892 Autodesk 60,100 896 Avnet* (D) 128,200 1,744 Celestica* (D) 109,300 1,587 Vishay Intertechnology* 163,600 2,362 -------- 7,481 -------- UTILITIES (4.0%) FirstEnergy 18,400 677 FPL Group 7,900 525 KeySpan 21,800 768 Pinnacle West Capital 13,300 504 PPL 24,800 1,003 Progress Energy 14,800 696 -------- 4,173 -------- Total Common Stock (Cost $93,029) 97,041 -------- SHORT-TERM INVESTMENT (10.1%) Boston Global Investment Trust -- Enhanced Portfolio (A) 10,608,700 10,609 -------- Total Short-Term Investment (Cost $10,609) 10,609 -------- REPURCHASE AGREEMENT (8.5%) UBS Paine Webber 1.289%, dated 05/30/03, matures 06/02/03, repurchase price $9,022,169 (collateralized by FHLB obligations: total market value $9,202,584) (C) $9,021 9,021 -------- Total Repurchase Agreement (Cost $9,021) 9,021 -------- Total Investments (110.5%) (Cost $112,659) 116,671 -------- OTHER ASSETS AND LIABILITIES (-10.5%) Payable Upon Return of Securities Loaned (10,609) Investment Advisory Fees Payable (97) Administration Fees Payable (6) Distribution Fees Payable (1) Custody Fees Payable (1) Other Assets and Liabilities, Net (359) -------- Total Other Assets and Liabilities (11,073) -------- - -------------------------------------------------------------------------------- VALUE (000) - -------------------------------------------------------------------------------- NET ASSETS: Paid in Capital -- Trust Shares (unlimited authorization -- no par value) based on 11,587,104 outstanding shares of beneficial interest $130,630 Paid in Capital -- Flex Shares (unlimited authorization -- no par value) based on 669,239 outstanding shares of beneficial interest 6,847 Undistributed net investment income 127 Accumulated net realized loss on investments (36,018) Net unrealized appreciation on investments 4,012 -------- Total Net Assets (100.0%) $105,598 ======== Net Asset Value, Offering and Redemption Price Per Share -- Trust Shares ($99,853,946 / 11,587,104 shares) $8.62 ======== Net Asset Value and Offering Price Per Share -- Flex Shares (1) ($5,743,793 / 669,239 shares) $8.58 ======== THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS. FOR DESCRIPTIONS OF ABBREVIATIONS AND FOOTNOTES, PLEASE SEE PAGE 83. 70 - -------------------------------------------------------------------------------- SMALL CAP GROWTH STOCK FUND - -------------------------------------------------------------------------------- SHARES VALUE (000) - -------------------------------------------------------------------------------- COMMON STOCK (96.5%) BASIC MATERIALS (2.3%) A. Schulman 183,600 $ 3,145 Celanese (D) 105,000 2,526 Cooper Tire & Rubber 160,000 2,542 Myers Industries 85,500 847 Schnitzer Steel Industries, Cl A 50,000 1,705 Worthington Industries 240,000 3,583 -------- 14,348 -------- CAPITAL GOODS (6.1%) Albany International, Cl A 90,000 2,396 American Axle & Manufacturing Holdings* (D) 150,000 3,750 Aptargroup 900 31 Astec Industries* 165,224 1,332 Beazer Homes USA* 30,000 2,544 BorgWarner 45,000 2,615 Briggs & Stratton (D) 70,000 3,226 Copart* 130,000 1,167 DRS Technologies* 130,000 3,250 ElkCorp (D) 70,000 1,447 Griffon* 250,000 3,845 Herley Industries* 80,000 1,256 Keith* 131,400 1,309 Newport* 145,000 2,319 Rogers* 150,000 4,953 Watsco 135,000 2,120 -------- 37,560 -------- COMMUNICATION SERVICES (2.2%) Anaren Microwave* 240,000 2,443 Applied Signal Technology 2,000 34 Boston Communications Group* (D) 282,902 4,603 Commonwealth Telephone Enterprises* 70,000 2,941 Powerwave Technologies* 300,000 2,085 Symmetricom* 140,000 651 TTI Team Telecom International Ltd.* (D) 142,428 809 -------- 13,566 -------- COMPUTER SOFTWARE (4.3%) Hyperion Solutions* 160,000 5,040 Macromedia* 90,000 1,815 NetScreen Technologies* (D) 130,000 2,911 Pinnacle Systems* 200,000 2,130 SS&C Technologies* 200,735 3,262 THQ* (D) 180,000 2,552 - -------------------------------------------------------------------------------- SHARES VALUE (000) - -------------------------------------------------------------------------------- COMPUTER SOFTWARE -- CONTINUED United Online* (D) 80,000 $ 1,723 Western Digital* (D) 550,000 6,886 -------- 26,319 -------- CONSUMER CYCLICALS (17.7%) 4Kids Entertainment* (D) 380,000 6,612 Alliance Gaming* 220,000 3,546 Bombay* 120,600 1,146 Boyd Gaming* 190,000 2,873 CBRL Group 60,000 2,165 Checkers Drive-In Restaurant* 286,500 2,301 Chico's FAS* 140,000 2,996 Christopher & Banks* (D) 60,000 1,737 Columbia Sportswear* (D) 60,000 2,977 Cost Plus* 100,000 3,595 DEL Laboratories* 91,500 2,288 Electronics Boutique Holdings* 170,000 3,570 Emerson Radio* 122,400 800 Gart Sports* 100,000 2,691 Guitar Center* (D) 160,000 3,832 Gymboree* (D) 150,000 2,565 Harman International Industries (D) 55,000 4,081 Imco Recycling* 290,000 2,114 Jos A. Bank Clothiers* 200,000 5,240 K-Swiss, Cl A 140,000 4,809 K2* 213,000 2,051 Linens 'N Things* (D) 140,000 3,223 Movie Gallery* 160,000 2,982 MTR Gaming Group* 140,000 965 Multimedia Games* (D) 84,300 2,068 O'Charleys* 180,000 3,451 O'Reilly Automotive* (D) 50,000 1,527 Penn National Gaming* 160,000 2,678 Quiksilver* 90,000 1,524 Rare Hospitality International* (D) 160,000 4,573 Rent-A-Center* (D) 45,000 2,990 Shuffle Master* (D) 50,000 1,340 Sonic* (D) 110,000 2,848 Sonic Automotive* (D) 190,000 3,545 Sonic Solutions* (D) 372,000 2,574 Steiner Leisure Ltd.* 305,000 4,773 TBC* (D) 87,800 1,580 Tuesday Morning* 45,300 1,039 Urban Outfitters* (D) 35,000 1,166 -------- 108,835 -------- CONSUMER STAPLES (2.1%) Church & Dwight 80,000 2,543 Cott* (D) 290,000 6,238 Ruby Tuesday 30,000 692 71 - -------------------------------------------------------------------------------- STATEMENT OF NET ASSETS - -------------------------------------------------------------------------------- STI CLASSIC EQUITY FUNDS MAY 31, 2003 SMALL CAP GROWTH STOCK FUND--CONTINUED - -------------------------------------------------------------------------------- SHARES VALUE (000) - -------------------------------------------------------------------------------- CONSUMER STAPLES -- CONTINUED Schweitzer-Mauduit International 4,800 $ 115 Sensient Technologies 140,000 3,170 -------- 12,758 -------- ENERGY (11.5%) CAL Dive International* 170,000 3,779 Comstock Resources* 300,000 4,113 Core Laboratories* 340,000 3,808 Energen 45,000 1,468 Grey Wolf* (D) 830,000 3,719 Headwaters* 312,000 5,925 Horizon Offshore* 520,000 2,626 Hydril* 135,000 3,711 Key Energy Services* 350,000 4,158 Magnum Hunter Resources* 720,000 5,184 Maverick Tube* 280,000 5,606 National-Oilwell* (D) 170,000 4,134 Oil States International* 310,000 4,166 Premcor* (D) 160,000 3,480 Remington Oil & Gas* 210,000 4,030 Superior Energy Services* 400,000 4,576 Torch Offshore* 290,000 2,030 Ultra Petroleum* 130,000 1,521 W-H Energy Services* 136,800 2,978 -------- 71,012 -------- FINANCE (8.7%) American Capital Strategies (D) 120,000 3,282 Arch Capital Group* 90,000 3,330 BankAtlantic Bancorp, Cl A 280,000 3,231 Bankunited Financial, Cl A* 54,000 995 Doral Financial 140,000 5,919 Federal Agricultural Mortgage, Cl C* (D) 110,000 2,615 First American 110,000 2,979 First Cash Financial Services* 80,000 980 First Niagara Financial Group 100,000 1,368 FirstFed Financial* 15,500 526 Hilb Rogal & Hamilton 30,000 1,049 Hub International Ltd. 110,000 1,791 Icon ADR* 40,000 1,100 IndyMac Bancorp 110,000 2,827 IPC Holdings Ltd. 90,000 2,906 LendingTree* 100,000 2,345 Netbank 230,000 3,052 Odyssey Re Holdings (D) 50,000 1,032 Portfolio Recovery Associates* (D) 95,100 2,849 R&G Financial, Cl B 160,000 4,544 RLI 130,000 3,845 Sterling Bancshares 60,000 716 -------- 53,281 -------- - -------------------------------------------------------------------------------- SHARES VALUE (000) - -------------------------------------------------------------------------------- HEALTH CARE (17.2%) Accredo Health* 120,000 $ 2,551 Alaris Medical* 170,000 2,125 American Healthways* (D) 150,000 3,875 American Pharmaceutical Partners* (D) 130,000 3,799 Amerigroup* 50,000 1,746 Applera - Celera Genomics Group* 170,000 1,997 Bio-Rad Laboratories, Cl A* (D) 25,000 1,475 Cima Labs* 122,100 3,510 Covance* 200,000 3,806 Endo Pharmaceuticals Holdings* 215,000 3,391 Fisher Scientific International* 140,000 4,437 Gentiva Health Services* 220,000 2,024 ICU Medical* (D) 105,000 3,244 Idexx Laboratories* 50,000 1,789 Integra LifeSciences Holdings* (D) 240,000 6,773 Invitrogen* 20,000 780 Kos Pharmaceuticals* (D) 190,000 4,628 LifePoint Hospitals* (D) 180,000 3,843 Martek Biosciences* (D) 95,000 3,576 Merit Medical Systems* 176,800 3,276 North American Scientific* (D) 95,000 767 Osteotech* 130,000 1,816 Pediatrix Medical Group* 80,000 3,005 Pharmaceutical Product Development* 120,000 3,366 Possis Medical* 300,000 5,118 Priority Healthcare, Cl B* (D) 220,000 4,961 Renal Care Group* (D) 90,000 3,058 Sierra Health Services* 300,000 6,144 Steris* 236,100 5,324 Taro Pharmaceuticals Industries* (D) 110,000 5,232 Techne* 78,301 2,271 WellChoice* 79,600 2,008 -------- 105,715 -------- SEMICONDUCTORS (1.0%) Cypress Semiconductor* 330,000 3,647 GlobespanVirata* 270,000 2,238 -------- 5,885 -------- SERVICES (5.1%) Avid Technology* 15,800 533 CDI* 150,000 3,967 Central European Distribution* (D) 77,347 2,402 Corinthian Colleges* 80,000 3,763 Earthlink* 150,000 1,011 72 - -------------------------------------------------------------------------------- - -------------------------------------------------------------------------------- SHARES VALUE (000) - -------------------------------------------------------------------------------- SERVICES -- CONTINUED eSpeed, Cl A* 230,000 $ 3,519 Getty Images* 50,000 2,020 Gevity 320,000 3,232 Kroll* 220,000 5,106 Moore Wallace 260,000 3,671 MPS Group* 286,000 2,051 -------- 31,275 -------- TECHNOLOGY (13.1%) Actel* (D) 160,000 3,550 Adaptec* (D) 250,000 2,000 Advanced Power Technology* (D) 100,000 500 Aeroflex* 550,000 4,317 Ansys* 65,200 1,861 ATMI* (D) 135,000 3,378 Avocent* (D) 155,000 4,582 Axcelis Technologies* 370,000 2,205 CACI International, Cl A* (D) 30,000 991 Catapult Communications* 17,400 187 Dot Hill Systems* (B) 900,000 9,124 eResearch Technology* (D) 110,000 2,060 Filenet* 220,000 3,672 Genesis Microchip* (D) 310,000 5,906 Hutchinson Technology* 65,000 1,962 Itron* 75,000 1,631 IXYS* 325,000 2,350 Maxtor* 360,000 2,707 Mercury Computer Systems* 210,000 4,620 Neoware Systems* (D) 300,000 3,465 Planar Systems* 100,000 2,074 Semtech* 100,000 1,585 Silicon Storage Technology* 586,100 2,766 Take-Two Interactive Software* (D) 110,000 2,778 Technitrol* 155,000 2,677 Utstarcom* 140,000 4,151 Vitesse Semiconductor* 700,000 3,514 -------- 80,613 -------- TRANSPORTATION (5.2%) Atlantic Coast Airlines Holdings* 230,000 2,178 EGL* 160,000 2,506 ExpressJet Holdings* 150,000 1,761 Genesee & Wyoming, Cl A* 83,000 1,735 Heartland Express* 40,000 944 JB Hunt Transport Services* (D) 70,000 2,593 - -------------------------------------------------------------------------------- SHARES/FACE AMOUNT (000) VALUE (000) - -------------------------------------------------------------------------------- TRANSPORTATION -- CONTINUED Knight Transportation* 26,000 $ 659 Landstar System* 20,000 1,281 Marten Transport* 40,000 903 OMI* 665,000 3,810 PAM Transportation Services* 110,000 2,631 Skywest 310,510 4,248 Werner Enterprises 210,000 4,813 Yellow* 80,000 2,102 -------- 32,164 -------- Total Common Stock (Cost $510,761) 593,331 -------- WARRANTS (0.0%) Per-Se Technologies, Strike Price $0.05, Expires 07/08/03* 3,664 -- -------- Total Warrants (Cost $0) -- -------- SHORT-TERM INVESTMENT (18.0%) Boston Global Investment Trust -- Enhanced Portfolio (A) 110,662,130 110,662 -------- Total Short-Term Investment (Cost $110,662) 110,662 -------- REPURCHASE AGREEMENT (2.9%) Morgan Stanley 1.289%, dated 05/30/03, matures 06/02/03, repurchase price $18,061,457 (collateralized by FNMA obligations: total market value $18,420,823) (C) $18,060 18,060 -------- Total Repurchase Agreement (Cost $18,060) 18,060 -------- Total Investments (117.4%) (Cost $639,483) 722,053 -------- OTHER ASSETS AND LIABILITIES (-17.4%) Payable Upon Return of Securities Loaned (110,662) Investment Advisory Fees Payable (561) Administration Fees Payable (34) Distribution Fees Payable (22) Custody Fees Payable (6) Transfer Agent Shareholder Servicing Fees Payable (1) Other Assets and Liabilities, Net 4,435 -------- Total Other Assets and Liabilities (106,851) -------- 73 STATEMENT OF NET ASSETS - -------------------------------------------------------------------------------- STI CLASSIC EQUITY FUNDS MAY 31, 2003 SMALL CAP GROWTH STOCK FUND--CONCLUDED - -------------------------------------------------------------------------------- VALUE (000) - -------------------------------------------------------------------------------- NET ASSETS: Paid in Capital -- Trust Shares (unlimited authorization -- no par value) based on 37,366,728 outstanding shares of beneficial interest $563,321 Paid in Capital -- Investor Shares (unlimited authorization -- no par value) based on 1,458,897 outstanding shares of beneficial interest 19,163 Paid in Capital -- Flex Shares (unlimited authorization -- no par value) based on 1,772,031 outstanding shares of beneficial interest 29,743 Undistributed net investment income 208 Accumulated net realized loss on investments (79,803) Net unrealized appreciation on investments 82,570 -------- Total Net Assets (100.0%) $615,202 ======== - -------------------------------------------------------------------------------- VALUE (000) - -------------------------------------------------------------------------------- Net Asset Value, Offering and Redemption Price Per Share -- Trust Shares ($567,714,156 / 37,366,728 shares) $15.19 ======== Net Asset Value and Redemption Price Per Share -- Investor Shares ($21,887,613 / 1,458,897 shares) $15.00 ======== Maximum Offering Price Per Share -- Investor Shares ($15.00 / 96.25%) $15.58 ======== Net Asset Value and Offering Price Per Share -- Flex Shares (1) ($25,600,669 / 1,772,031 shares) $14.45 ======== THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS. FOR DESCRIPTIONS OF ABBREVIATIONS AND FOOTNOTES, PLEASE SEE PAGE 83. 74 - -------------------------------------------------------------------------------- SMALL CAP VALUE EQUITY FUND - -------------------------------------------------------------------------------- SHARES VALUE (000) - -------------------------------------------------------------------------------- COMMON STOCK (97.1%) BASIC MATERIALS (9.7%) Boise Cascade 326,400 $ 8,020 Carpenter Technology 176,500 2,716 Cia Siderurgica Nacional ADR* (D) 59,300 1,130 Lesco* 295,800 3,260 Lubrizol 202,000 6,444 Olin 316,900 5,597 Sappi ADR (D) 302,900 3,741 Sociedad Quimica Minera de Chile ADR 153,700 4,119 Southern Peru Copper 233,400 3,706 Texas Industries 315,700 6,980 United States Steel (D) 403,600 6,357 Wellman 133,400 1,501 -------- 53,571 -------- CAPITAL GOODS (14.0%) BHA Group Holdings 63,600 1,339 Briggs & Stratton (D) 82,700 3,812 Cummins (D) 188,000 6,445 Empresa Brasileira de Aeronautica ADR 816,916 12,050 Goodrich 187,000 3,416 Lennox International 258,789 3,708 LSI Industries 380,250 4,521 Makita ADR 870,600 6,660 Oshkosh Truck 55,000 3,049 Quixote 315,500 7,256 Robbins & Myers 248,500 4,766 Roper Industries 80,100 2,939 Snap-On 134,300 4,084 Standard Register 77,900 1,361 Tecumseh Products, Cl A 63,400 2,438 Tenaris ADR* 103,173 2,404 Valspar (D) 121,700 5,305 York International 67,200 1,740 -------- 77,293 -------- COMMUNICATION SERVICES (3.4%) Harris 622,128 18,844 -------- CONSUMER CYCLICALS (21.8%) Bassett Furniture Industries 228,300 3,103 Benetton Group ADR (D) 238,900 4,742 Blyth 191,000 5,275 CBRL Group (D) 237,900 8,583 Circuit City Stores 1,332,200 9,578 Edelbrock 12,540 125 Ethan Allen Interiors (D) 228,200 8,131 Fairmont Hotels & Resorts (D) 233,100 5,501 Harman International Industries (D) 91,714 6,805 Intrawest 350,100 4,121 John H. Harland 239,300 5,832 - -------------------------------------------------------------------------------- SHARES VALUE (000) - -------------------------------------------------------------------------------- CONSUMER CYCLICALS -- CONTINUED John Wiley & Sons, Cl A 209,300 $ 5,327 Libbey 149,800 3,221 Media General, Cl A 115,700 6,808 Movado Group 149,400 3,433 Natuzzi Spa ADR 284,500 2,381 Nautilus Group (D) 579,200 7,524 Phillips-Van Heusen 354,200 4,998 Pier 1 Imports (D) 284,400 5,719 Stewart & Stevenson Services 299,000 4,312 Sturm Ruger 139,100 1,323 Thomas Industries 95,600 2,811 Winnebago Industries (D) 225,200 8,954 Wolverine World Wide 85,700 1,574 -------- 120,181 -------- CONSUMER STAPLES (7.8%) Adolph Coors, Cl B (D) 148,100 8,157 Church & Dwight 360,400 11,457 Dial 220,500 4,410 Ingles Markets, Cl A 225,800 2,202 Interstate Bakeries 168,200 2,183 JM Smucker 232,343 8,748 Sensient Technologies 267,135 6,048 -------- 43,205 -------- ENERGY (3.6%) Arch Coal (D) 199,000 4,499 ENSCO International 129,100 3,873 Noble Energy 73,700 2,685 Peabody Energy 269,100 8,840 -------- 19,897 -------- FINANCE (15.3%) American Financial Group (D) 173,000 3,825 Banner 120,300 2,549 Chicago Mercantile Exchange (D) 74,800 4,599 City National 91,800 4,131 Colonial BancGroup 401,000 5,417 FNB 162,134 4,887 Glacier Bancorp 155,797 3,915 HCC Insurance Holdings (D) 263,700 7,555 Horizon Financial 242,706 4,063 Hub International Ltd. 257,600 4,194 Klamath First Bancorp 215,100 3,743 Pacific Northwest Bancorp 103,200 3,601 PXRE Group 180,500 3,628 Scottish Annuity & Life Holdings 197,800 3,770 Seacoast Banking Corp of Florida 207,000 3,674 Stancorp Financial Group 71,500 3,865 Student Loan 36,800 4,383 75 STATEMENT OF NET ASSETS - -------------------------------------------------------------------------------- STI CLASSIC EQUITY FUNDS MAY 31, 2003 SMALL CAP VALUE EQUITY FUND--CONCLUDED - -------------------------------------------------------------------------------- SHARES VALUE (000) - -------------------------------------------------------------------------------- FINANCE -- CONTINUED Washington Federal 170,076 $ 3,995 West Coast Bancorp 239,453 4,011 Wilmington Trust 161,500 4,683 -------- 84,488 -------- HEALTH CARE (2.5%) Alpharma, Cl A (D) 339,829 7,143 Cambrex (D) 312,900 6,634 -------- 13,777 -------- SERVICES (6.2%) ABM Industries 343,500 5,077 Hollinger International 404,700 4,480 Pittson Brink's Group 845,300 13,381 Reynolds & Reynolds, Cl A 264,700 7,835 Roto-Rooter 87,600 3,418 -------- 34,191 -------- TECHNOLOGY (6.1%) Autodesk 480,300 7,161 C&D Technologies 230,000 3,415 Fair Isaac (D) 120,300 6,707 Helix Technology 243,900 3,290 Keithley Instruments 234,300 3,210 Premier Farnell ADR (D) 804,200 5,026 Symbol Technologies (D) 360,600 4,832 -------- 33,641 -------- TRANSPORTATION (4.5%) Canadian Pacific Railway Ltd.* 48,300 1,148 CHC Helicopter, Cl A* 396,200 7,754 CP Ships Ltd.* (D) 686,400 10,378 KLM Royal Dutch Air (D) 467,200 3,387 USFreightways 77,600 2,323 -------- 24,990 -------- UTILITIES (2.2%) Allete 332,069 8,368 Puget Energy 171,600 4,024 -------- 12,392 -------- Total Common Stock (Cost $477,927) 536,470 -------- CASH EQUIVALENT (0.0%) SEI Daily Income Trust Prime Obligation Fund, Cl A 37,201 37 -------- Total Cash Equivalent (Cost $37) 37 -------- - -------------------------------------------------------------------------------- SHARES/FACE AMOUNT (000) VALUE (000) - -------------------------------------------------------------------------------- SHORT-TERM INVESTMENT (12.8%) Boston Global Investment Trust -- Enhanced Portfolio (A) 70,771,000 $ 70,771 -------- Total Short-Term Investment (Cost $70,771) 70,771 -------- REPURCHASE AGREEMENT (2.8%) Morgan Stanley 1.289%, dated 05/30/03, matures 06/02/03, repurchase price $15,642,421 (collateralized by FNMA obligations: total market value $15,953,556) (C) $15,641 $ 15,641 -------- Total Repurchase Agreement (Cost $15,641) 15,641 -------- Total Investments (112.7%) (Cost $564,376) 622,919 -------- OTHER ASSETS AND LIABILITIES (-12.7%) Payable Upon Return of Securities Loaned (70,771) Investment Advisory Fees Payable (511) Administration Fees Payable (31) Distribution Fees Payable (23) Custody Fees Payable (6) Transfer Agent Shareholder Servicing Fees Payable (1) Other Assets and Liabilities, Net 956 -------- Total Other Assets and Liabilities (70,387) -------- NET ASSETS: Paid in Capital -- Trust Shares (unlimited authorization -- no par value) based on 37,771,871 outstanding shares of beneficial interest 476,687 Paid in Capital -- Flex Shares (unlimited authorization -- no par value) based on 2,514,683 outstanding shares of beneficial interest 41,086 Undistributed net investment income 1,454 Accumulated net realized loss on investments (25,238) Net unrealized appreciation on investments 58,543 -------- Total Net Assets (100.0%) $552,532 ======== Net Asset Value, Offering and Redemption Price Per Share -- Trust Shares ($518,468,400 / 37,771,871 shares) $13.73 ======== Net Asset Value and Offering Price Per Share -- Flex Shares (1) ($34,063,766 / 2,514,683 shares) $13.55 ======== THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS. FOR DESCRIPTIONS OF ABBREVIATIONS AND FOOTNOTES, PLEASE SEE PAGE 83. 76 - -------------------------------------------------------------------------------- TAX SENSITIVE GROWTH STOCK FUND - -------------------------------------------------------------------------------- SHARES VALUE (000) - -------------------------------------------------------------------------------- COMMON STOCK (96.4%) BASIC MATERIALS (1.2%) Praxair 60,000 $ 3,600 -------- CAPITAL GOODS (7.7%) 3M 27,566 3,486 Applied Materials* 86,406 1,344 Danaher (D) 40,000 2,677 General Electric 362,344 10,399 Lockheed Martin 50,000 2,321 Masco 146,200 3,597 -------- 23,824 -------- COMMUNICATION SERVICES (1.9%) Nokia Oyj ADR 224,600 4,052 Qualcomm 51,700 1,736 -------- 5,788 -------- COMPUTER SOFTWARE (1.2%) BEA Systems* 100,000 1,084 Mercury Interactive* (D) 64,300 2,528 -------- 3,612 -------- CONSUMER CYCLICALS (16.8%) Bed Bath & Beyond* 200,000 8,368 Coach* 125,000 6,141 Colgate-Palmolive 60,000 3,577 Gap (D) 249,700 4,245 Harley-Davidson (D) 100,000 4,216 Liz Claiborne 75,000 2,542 Lowe's 125,000 5,282 Target 70,000 2,564 Viacom, Cl B* 40,000 1,821 Wal-Mart Stores 171,881 9,043 Walgreen 126,339 3,890 -------- 51,689 -------- CONSUMER STAPLES (6.8%) Anheuser-Busch 65,000 3,421 Clorox 73,100 3,265 PepsiCo 135,000 5,967 Procter & Gamble 70,000 6,427 Starbucks* 79,800 1,966 -------- 21,046 -------- ENERGY (2.7%) Apache 39,875 2,628 Exxon Mobil 103,618 3,772 Schlumberger Ltd. 40,000 1,945 -------- 8,345 -------- FINANCE (17.0%) Aflac 149,700 4,927 Allstate 40,000 1,440 - -------------------------------------------------------------------------------- SHARES VALUE (000) - -------------------------------------------------------------------------------- FINANCE -- CONTINUED American Express 121,180 $ 5,048 American International Group 53,577 3,101 Bank of America 62,371 4,628 Citigroup 80,946 3,320 Fannie Mae 92,521 6,847 Fifth Third Bancorp 25,000 1,437 Freddie Mac 85,000 5,084 Marsh & McLennan 124,300 6,231 Progressive 23,100 1,663 SLM 55,000 6,600 Wells Fargo 43,269 2,090 -------- 52,416 -------- HEALTH CARE (21.0%) Allergan 25,000 1,803 AmerisourceBergen 75,700 4,746 Amgen* 90,000 5,824 Forest Laboratories* 100,000 5,050 Health Management Associates, Cl A (D) 140,000 2,611 Johnson & Johnson 166,732 9,062 Medtronic 121,963 5,943 Merck 104,572 5,812 Pfizer 398,793 12,370 UnitedHealth Group 40,000 3,837 WellPoint Health Networks* 70,000 5,974 Wyeth 42,640 1,870 -------- 64,902 -------- SEMICONDUCTORS (2.4%) Linear Technology 61,291 2,228 Micron Technology* 124,900 1,414 Xilinx* 125,000 3,734 -------- 7,376 -------- TECHNOLOGY (17.7%) Affiliated Computer Services, Cl A* 80,000 3,707 Cisco Systems* 454,479 7,399 Dell Computer* 200,000 6,258 EMC* 191,200 2,069 Intel 374,886 7,813 International Business Machines 64,885 5,712 Microsoft 418,856 10,308 Network Appliance* (D) 50,000 852 Oracle* 555,808 7,231 Sun Microsystems* 771,400 3,340 -------- 54,689 -------- Total Common Stock (Cost $244,281) 297,287 -------- 77 STATEMENT OF NET ASSETS - -------------------------------------------------------------------------------- STI CLASSIC EQUITY FUNDS MAY 31, 2003 TAX SENSITIVE GROWTH STOCK FUND--CONCLUDED - -------------------------------------------------------------------------------- SHARES/FACE AMOUNT (000) VALUE (000) - -------------------------------------------------------------------------------- EXCHANGE TRADED FUND (1.6%) SPDR Trust, Ser 1 50,000 $ 4,848 -------- Total Exchange Traded Fund (Cost $4,431) 4,848 -------- SHORT-TERM INVESTMENT (4.6%) Boston Global Investment Trust -- Enhanced Portfolio (A) 14,082,700 14,083 -------- Total Short-Term Investment (Cost $14,083) 14,083 -------- REPURCHASE AGREEMENT (0.1%) Morgan Stanley 1.289%, dated 05/30/03, matures 06/02/03, repurchase price $488,731 (collateralized by FNMA obligations: total market value $498,453) (C) $489 489 -------- Total Repurchase Agreement (Cost $489) 489 -------- Total Investments (102.7%) (Cost $263,284) 316,707 -------- OTHER ASSETS AND LIABILITIES (-2.7%) Payable Upon Return of Securities Loaned (14,083) Investment Advisory Fees Payable (304) Administration Fees Payable (18) Distribution Fees Payable (87) Custody Fees Payable (4) Transfer Agent Shareholder Servicing Fees Payable (1) Other Assets and Liabilities, Net 6,304 -------- Total Other Assets and Liabilities (8,193) -------- - -------------------------------------------------------------------------------- VALUE (000) - -------------------------------------------------------------------------------- NET ASSETS: Paid in Capital -- Trust Shares (unlimited authorization -- no par value) based on 9,549,977 outstanding shares of beneficial interest $312,592 Paid in Capital -- Flex Shares (unlimited authorization -- no par value) based on 5,545,717 outstanding shares of beneficial interest 213,734 Accumulated net investment loss (835) Accumulated net realized loss on investments (270,400) Net unrealized appreciation on investments 53,423 -------- Total Net Assets (100.0%) $308,514 ======== Net Asset Value, Offering and Redemption Price Per Share -- Trust Shares ($198,429,427 / 9,549,977 shares) $20.78 ======== Net Asset Value and Offering Price Per Share -- Flex Shares (1) ($110,084,645 / 5,545,717 shares) $19.85 ======== THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS. FOR DESCRIPTIONS OF ABBREVIATIONS AND FOOTNOTES, PLEASE SEE PAGE 83. 78 - -------------------------------------------------------------------------------- VALUE INCOME STOCK FUND - -------------------------------------------------------------------------------- SHARES VALUE (000) - -------------------------------------------------------------------------------- COMMON STOCK (94.7%) BASIC MATERIALS (8.9%) Alcoa 419,100 $ 10,314 Bowater 89,400 3,504 Eastman Chemical (D) 130,064 4,252 International Paper 352,000 12,908 Nucor (D) 191,000 9,099 PPG Industries 169,500 8,243 Praxair 151,700 9,100 Rohm & Haas 266,000 8,626 Vulcan Materials 143,600 5,262 -------- 71,308 -------- CAPITAL GOODS (13.8%) Boeing 162,600 4,987 Dover 485,000 14,700 Eaton (D) 98,300 8,250 Emerson Electric 223,200 11,673 General Electric 192,700 5,530 Honeywell International 410,900 10,766 Ingersoll-Rand, Cl A 85,700 3,754 Masco (D) 371,900 9,149 Pall 249,600 5,421 Parker Hannifin 224,900 9,093 Rockwell Collins 375,600 8,631 Teleflex 92,600 3,994 Textron 127,001 4,426 W.W. Grainger (D) 212,800 9,938 -------- 110,312 -------- COMMUNICATION SERVICES (5.6%) Alltel 186,400 8,925 BellSouth 320,300 8,491 CenturyTel (D) 245,600 8,269 SBC Communications 348,600 8,875 Verizon Communications 267,410 10,122 -------- 44,682 -------- CONSUMER CYCLICALS (10.3%) Carnival 196,500 6,013 Gannett 178,200 14,078 Genuine Parts (D) 227,300 7,471 Limited Brands 690,100 10,531 May Department Stores 370,700 8,041 McGraw-Hill 153,700 9,715 Newell Rubbermaid 281,100 8,011 Stanley Works 193,300 5,405 VF 110,900 4,222 Walt Disney 421,500 8,282 -------- 81,769 -------- - -------------------------------------------------------------------------------- SHARES VALUE (000) - -------------------------------------------------------------------------------- CONSUMER STAPLES (6.7%) Clorox 88,600 $ 3,957 HJ Heinz 294,100 9,726 Kimberly-Clark 291,100 15,117 Kraft Foods, Cl A 129,700 4,202 PepsiCo 229,100 10,126 Supervalu 512,900 10,181 -------- 53,309 -------- ENERGY (11.5%) BP ADR 366,200 15,340 ConocoPhillips 281,540 15,195 Diamond Offshore Drilling 457,000 10,392 Exxon Mobil 416,200 15,150 GlobalSantaFe 348,300 8,666 Schlumberger Ltd. 223,300 10,857 Tidewater (D) 291,700 9,632 Valero Energy 166,600 6,247 -------- 91,479 -------- FINANCE (26.8%) Allstate 351,500 12,651 AMBAC Financial Group 121,300 8,092 American Express 218,900 9,119 American International Group 242,004 14,007 Bank of America 140,800 10,447 Bank of New York 325,500 9,420 Citigroup 393,700 16,150 Comerica 187,700 8,685 FleetBoston Financial 151,447 4,478 Freddie Mac 130,400 7,799 Hartford Financial Services Group 180,100 8,400 Jefferson-Pilot 196,400 8,286 Keycorp 342,000 9,029 Lincoln National (D) 124,100 4,319 Merrill Lynch 269,000 11,648 Morgan Stanley 107,900 4,936 Nationwide Financial Services, Cl A 270,100 8,713 PNC Financial Services Group 198,300 9,766 Prudential Financial 358,200 12,007 St. Paul 107,900 3,947 Travelers Property Casualty, Cl A 582,900 9,519 U.S. Bancorp 430,600 10,205 Wells Fargo 237,100 11,452 -------- 213,075 -------- HEALTH CARE (3.2%) Abbott Laboratories 194,400 8,661 Becton Dickinson 217,200 8,688 Wyeth 181,300 7,950 -------- 25,299 -------- 79 STATEMENT OF NET ASSETS - -------------------------------------------------------------------------------- STI CLASSIC EQUITY FUNDS MAY 31, 2003 VALUE INCOME STOCK FUND--CONCLUDED - -------------------------------------------------------------------------------- SHARES/FACE AMOUNT (000) VALUE (000) - -------------------------------------------------------------------------------- TECHNOLOGY (5.3%) Harris 267,000 $ 8,088 Hewlett-Packard 402,700 7,853 Koninklijke Philips Electronics (D) 457,600 8,996 Motorola 856,300 7,296 Pitney Bowes 265,800 10,209 -------- 42,442 -------- TRANSPORTATION (1.1%) Norfolk Southern 388,600 8,518 -------- UTILITIES (1.5%) FPL Group 65,100 4,327 Progress Energy 164,600 7,745 -------- 12,072 -------- Total Common Stock (Cost $711,863) 754,265 -------- SHORT-TERM INVESTMENT (3.2%) Boston Global Investment Trust -- Enhanced Portfolio (A) 25,036,600 25,037 -------- Total Short-Term Investment (Cost $25,037) 25,037 -------- REPURCHASE AGREEMENTS (6.3%) Greenwich Capital 1.299%, dated 05/30/03, matures 06/02/03, repurchase price $29,694,548 (collateralized by U.S. Treasury Notes: total market value $30,288,834) (C) $29,691 29,691 UBS Paine Webber 1.299%, dated 05/30/03, matures 06/02/03, repurchase price $20,757,630 (collateralized by FHLB obligations: total market value $21,171,790) (C) 20,755 20,755 -------- Total Repurchase Agreements (Cost $50,446) 50,446 -------- Total Investments (104.2%) (Cost $787,346) 829,748 -------- - -------------------------------------------------------------------------------- VALUE (000) - -------------------------------------------------------------------------------- OTHER ASSETS AND LIABILITIES (-4.2%) Payable Upon Return of Securities Loaned $ (25,037) Investment Advisory Fees Payable (523) Administration Fees Payable (45) Distribution Fees Payable (53) Custody Fees Payable (9) Transfer Agent Shareholder Servicing Fees Payable (2) Other Assets and Liabilities, Net (7,879) -------- Total Other Assets and Liabilities (33,548) -------- NET ASSETS: Paid in Capital -- Trust Shares (unlimited authorization -- no par value) based on 70,112,995 outstanding shares of beneficial interest 831,793 Paid in Capital -- Investor Shares (unlimited authorization -- no par value) based on 6,733,330 outstanding shares of beneficial interest 87,198 Paid in Capital -- Flex Shares (unlimited authorization -- no par value) based on 5,106,029 outstanding shares of beneficial interest 96,124 Undistributed net investment income 2,163 Accumulated net realized loss on investments (263,480) Net unrealized appreciation on investments 42,402 -------- Total Net Assets (100.0%) $796,200 ======== Net Asset Value, Offering and Redemption Price Per Share -- Trust Shares ($681,899,104 / 70,112,995 shares) $9.73 ======== Net Asset Value and Redemption Price Per Share -- Investor Shares ($65,293,927 / 6,733,330 shares) $9.70 ======== Maximum Offering Price Per Share -- Investor Shares ($9.70 / 96.25%) $10.08 ======== Net Asset Value and Offering Price Per Share -- Flex Shares (1) ($49,007,314 / 5,106,029 shares) $9.60 ======== THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS. FOR DESCRIPTIONS OF ABBREVIATIONS AND FOOTNOTES, PLEASE SEE PAGE 83. 80 SCHEDULE OF INVESTMENTS - -------------------------------------------------------------------------------- VANTAGE FUND - -------------------------------------------------------------------------------- SHARES VALUE (000) - -------------------------------------------------------------------------------- COMMON STOCK (93.2%) COMMUNICATION SERVICES (3.6%) Alcatel ADR 7,000 $ 65 Foundry Networks* 3,000 46 Fox Entertainment Group, Cl A* 2,500 70 ------ 181 ------ COMPUTER SOFTWARE (2.3%) Amdocs* 5,900 115 ------ CONSUMER CYCLICALS (15.3%) Autozone* 1,000 84 Colgate-Palmolive+ 2,500 149 Family Dollar Stores 2,000 73 Lowe's 2,000 84 Mandalay Resort Group* 3,000 90 MGM Mirage* 3,500 99 Urban Outfitters+* 6,000 200 ------ 779 ------ CONSUMER STAPLES (4.1%) Maytag 2,500 61 Whole Foods Market* 2,700 148 ------ 209 ------ ENERGY (17.9%) BJ Services* 3,000 122 Dynegy, Cl A 10,000 50 ENSCO International 4,000 120 EOG Resources 3,500 151 GlobalSantaFe 5,000 124 Patina Oil & Gas 3,000 119 Patterson-UTI Energy* 3,500 128 Rowan* 4,000 96 ------ 910 ------ FINANCE (26.5%) AFLAC 2,300 76 AMBAC Financial Group+ 3,400 227 Bank of America 2,300 171 Everest Re Group Ltd. 1,100 80 FleetBoston Financial 5,900 174 Goldman Sachs Group 1,000 81 JPMorgan Chase 6,000 197 Morgan Stanley 2,000 91 National City 2,000 68 Netbank 7,000 93 XL Capital Ltd., Cl A 1,100 96 ------ 1,354 ------ - -------------------------------------------------------------------------------- SHARES/FACE AMOUNT (000) VALUE (000) - -------------------------------------------------------------------------------- SEMICONDUCTORS (6.0%) Intersil, Cl A* 9,000 $ 220 Micrel* 7,000 84 ------ 304 ------ SERVICES (4.3%) Factset Research Systems 2,000 77 Getty Images* 1,500 61 Pec Solutions* 2,500 36 VeriSign* 3,000 45 ------ 219 ------ TECHNOLOGY (8.4%) Cisco Systems* 4,000 65 Enterasys Networks* 10,000 35 Extreme Networks* 7,000 42 Juniper Networks* 10,000 139 Nortel Networks* 15,000 47 Redback Networks* 50,000 55 Sonus Networks* 10,000 47 ------ 430 ------ TRANSPORTATION (4.8%) Airtran Holdings* 12,000 89 Northrop Grumman 1,800 158 ------ 247 ------ Total Common Stock (Cost $4,497) 4,748 ------ REPURCHASE AGREEMENTS (26.4%) Morgan Stanley 1.050%, dated 05/30/03, matures 06/02/03, repurchase price $300,026 (collateralized by U.S. Treasury Notes: total market value $306,002) (C) $ 300 300 UBS Warburg 1.289%, dated 05/30/03, matures 06/02/03, repurchase price $1,047,564 (collateralized by FHLB obligations: total market value $1,071,975) (C) 1,047 1,047 ------ Total Repurchase Agreements (Cost $1,347) 1,347 ------ Total Investments (119.6%) (Cost $5,844) 6,095 ------ 81 SCHEDULE OF INVESTMENTS - -------------------------------------------------------------------------------- STI CLASSIC EQUITY FUNDS MAY 31, 2003 VANTAGE FUND--CONCLUDED - -------------------------------------------------------------------------------- SHARES VALUE (000) - -------------------------------------------------------------------------------- SECURITIES SOLD SHORT (12.8%) BASIC MATERIALS (1.3%) PPG Industries (1,300) $ (63) ------ CAPITAL GOODS (3.1%) Caterpillar (1,000) (52) Emerson Electric (2,000) (105) ------ (157) ------ COMMUNICATION SERVICE (1.6%) Clear Channel Communications* (2,000) (81) ------ CONSUMER CYCLICALS (1.5%) Marriott International, Cl A (2,000) (78) ------ CONSUMER STAPLES (1.3%) HJ Heinz (2,000) (66) ------ FINANCE (1.6%) Dow Jones (1,800) (82) ------ SERVICES (1.2%) Sabre Holdings (2,500) (62) ------ TECHNOLOGY (0.9%) Autodesk (3,000) (45) ------ TRANSPORTATION (0.3%) Southwest Airlines (1,000) (16) ------ Total Securities Sold Short (Proceeds $(622)) $ (650) ====== Percentages are based on Net Assets of $5,093,726. THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS. FOR DESCRIPTIONS OF ABBREVIATIONS AND FOOTNOTES, PLEASE SEE PAGE 83. 82 - -------------------------------------------------------------------------------- KEY TO ABBREVIATIONS AND FOOTNOTES USED IN THE STATEMENTS OF NET ASSETS AND SCHEDULES OF INVESTMENTS ADR American Depositary Receipt AUD Australian Dollar Cl Class DKK Danish Krone FHLB Federal Home Loan Bank EUR Euro FHLMC Federal Home Loan Mortgage Corporation FNMA Federal National Mortgage Association GBP Great British Pound GNMA Government National Mortgage Association LP Limited Partnership Ltd. Limited MTN Medium Term Note NOK Norwegian Krona NZD New Zealand Dollar REIT Real Estate Investment Trust SEK Swedish Krona Ser Series SPDR Standard & Poor's Depositary Receipt USD United States Dollar * Non-income producing security + All or a portion of this security is held as collateral for short sales. (A) This security was purchased with cash collateral held from securities lending (see Note 8 in Notes to Financial Statements). (B) Security considered illiquid and restricted (not readily marketable). Security fair valued using methods determined in good faith according to procedures adopted by the Valuation Committee of the Board of Trustees. The total value of the security was 1.48% of net assets (see Note 2 in Notes to Financial Statements). (C) Tri-Party Repurchase Agreement (D) This security or a partial position of the security was on loan at May 31, 2003 (see Note 8 in Notes to Financial Statements). The total value of securities on loan at May 31, 2003 was $27,777,086, $105,845,567, $28,398,861, $3,985,125, $18,564,189, $48,414,980, $17,274,830, $10,418,665, $105,824,120, $69,512,550, $13,539,310 and $24,869,469 for the Balanced Fund, Capital Appreciation Fund, Growth and Income Fund, Information and Technology Fund, International Equity Fund, International Equity Index Fund, Mid-Cap Equity Fund, Mid Cap Value Equity Fund, Small Cap Growth Stock Fund, Small Cap Value Equity Fund, Tax Sensitive Growth Stock Fund and Value Income Stock Fund, respectively. (1) The Flex Shares and B Shares have a contingent sales charge. For a description of a possible sales charge, see Note 2 in Notes to Financial Statements. Amounts designated as "--" are either $0 or have been rounded to $0. 83 This page left intentionally blank.
STATEMENTS OF ASSETS AND LIABILITIES (000) - ------------------------------------------------------------------------------------------------------------------------------------ STI CLASSIC EQUITY FUNDS MAY 31, 2003 INFORMATION AND INTERNATIONAL TECHNOLOGY EQUITY FUND FUND ------------- --------------- Assets: Investments at Market Value (Cost $19,227, $220,057, $356,811 and and $4,497, respectively) $22,203 $222,048 Repurchase Agreements (Cost $207 and $1,347, respectively) 207 -- Cash -- -- Foreign Currency (Cost $1,945 and $171, respectively) -- 1,951 Receivable for Investment Securities Sold 2,407 500 Deposits with Brokers for Securities Sold Short -- Note 2 -- -- Receivable for Capital Shares Sold 28 1,221 Reclaims Receivable -- 480 Accrued Income 2 600 ------- -------- Total Assets 24,847 226,800 ------- -------- Liabilities: Payable Upon Return of Securities Loaned 4,063 18,604 Securities Sold Short at Value (Proceeds $-622) -- Note 2 -- -- Payable for Investment Securities Purchased 2,462 4,469 Investment Advisory Fees Payable 16 207 Administration Fees Payable 1 11 Distribution Fees Payable 2 3 Custody Fees Payable -- 11 Transfer Agent Shareholder Servicing Fees Payable -- -- Accrued Expenses 7 31 Unrealized Losses on Forward Foreign Currency Contracts -- -- Payable for Capital Shares Redeemed 22 336 Payable to Custodian -- 1 ------- -------- Total Liabilities 6,573 23,673 ------- -------- Total Net Assets $18,274 $203,127 ======= ======== Net Assets: Paid in Capital -- Trust Shares (unlimited authorization -- no par value) based on 1,942,197, 23,886,721, 29,643,468 and 496,596 outstanding shares of beneficial interest, respectively $77,463 $278,360 Paid in Capital -- Investor Shares (unlimited authorization -- no par value) based on 809,220 and 1,193,322 outstanding shares of beneficial interest, respectively -- 7,693 Paid in Capital-- Flex Shares (unlimited authorization -- no par value) based on 1,106,514, 757,445, 381,642 and 107,115 outstanding shares of beneficial interest, respectively 27,648 11,580 Undistributed net investment income -- 2,222 Accumulated net realized loss on investments (89,813) (98,965) Net unrealized appreciation (depreciation) on investments 2,976 1,991 Net unrealized appreciation on foreign currency and translation of other assets and liabilities in foreign currency investments -- 246 ------- -------- Total Net Assets $18,274 $203,127 ======= ======== Net Asset Value, Offering and Redemption Price Per Share -- Trust Shares ($11,789,235 / 1,942,197 shares, $191,041,138 / 23,886,721 shares, $248,770,500 / 29,643,468 shares and $4,195,039 / 496,596 shares, respectively) $6.07 $8.00 ======= ======== Net Asset Value and Redemption Price Per Share -- Investor Shares ($6,407,993 / 809,220 shares and $9,876,703 / 1,193,322 shares, respectively) $-- $7.92 ======= ======== Maximum Offering Price Per Share -- Investor Shares ($7.92 / 96.25% and $8.28 / 96.25%, respectively) $-- $8.23 ======= ======== Net Asset Value and Offering Price Per Share -- Flex Shares (1) ($6,484,737 / 1,106,514 shares, $5,677,990 / 757,445 shares, $3,092,621 / 381,642 shares and $898,687 / 107,115 shares, respectively) $5.86 $7.50 ======= ========
INTERNATIONAL EQUITY VANTAGE INDEX FUND FUND --------------- ------- Assets: Investments at Market Value (Cost $19,227, $220,057, $356,811 and and $4,497, respectively) $312,853 $ 4,748 Repurchase Agreements (Cost $207 and $1,347, respectively) -- 1,347 Cash -- 355 Foreign Currency (Cost $1,945 and $171, respectively) 172 -- Receivable for Investment Securities Sold 16,352 429 Deposits with Brokers for Securities Sold Short -- Note 2 -- 607 Receivable for Capital Shares Sold 157 -- Reclaims Receivable 289 -- Accrued Income 801 5 -------- ------- Total Assets 330,624 7,491 -------- ------- Liabilities: Payable Upon Return of Securities Loaned 51,638 -- Securities Sold Short at Value (Proceeds $-622) -- Note 2 -- 650 Payable for Investment Securities Purchased 16,736 1,714 Investment Advisory Fees Payable 177 7 Administration Fees Payable 15 -- Distribution Fees Payable 3 -- Custody Fees Payable 25 -- Transfer Agent Shareholder Servicing Fees Payable 1 -- Accrued Expenses 41 2 Unrealized Losses on Forward Foreign Currency Contracts 18 -- Payable for Capital Shares Redeemed 227 24 Payable to Custodian 3 -- -------- ------- Total Liabilities 68,884 2,397 -------- ------- Total Net Assets $261,740 $ 5,094 ======== ======= Net Assets: Paid in Capital -- Trust Shares (unlimited authorization -- no par value) based on 1,942,197, 23,886,721, 29,643,468 and 496,596 outstanding shares of beneficial interest, respectively $365,436 $ 5,757 Paid in Capital -- Investor Shares (unlimited authorization -- no par value) based on 809,220 and 1,193,322 outstanding shares of beneficial interest, respectively 8,366 -- Paid in Capital-- Flex Shares (unlimited authorization -- no par value) based on 1,106,514, 757,445, 381,642 and 107,115 outstanding shares of beneficial interest, respectively 5,383 1,068 Undistributed net investment income 2,287 -- Accumulated net realized loss on investments (75,901) (1,954) Net unrealized appreciation (depreciation) on investments (43,958) 223 Net unrealized appreciation on foreign currency and translation of other assets and liabilities in foreign currency investments 127 -- -------- ------- Total Net Assets $261,740 $ 5,094 ======== ======= Net Asset Value, Offering and Redemption Price Per Share -- Trust Shares ($11,789,235 / 1,942,197 shares, $191,041,138 / 23,886,721 shares, $248,770,500 / 29,643,468 shares and $4,195,039 / 496,596 shares, respectively) $8.39 $8.45 Net Asset Value and Redemption Price Per Share -- Investor Shares ($6,407,993 / 809,220 shares and $9,876,703 / 1,193,322 shares, respectively) $8.28 $-- ======== ======= Maximum Offering Price Per Share -- Investor Shares ($7.92 / 96.25% and $8.28 / 96.25%, respectively) $8.60 $-- ======== ======= Net Asset Value and Offering Price Per Share -- Flex Shares (1) ($6,484,737 / 1,106,514 shares, $5,677,990 / 757,445 shares, $3,092,621 / 381,642 shares and $898,687 / 107,115 shares, respectively) $8.10 $8.39 ======== =======
(1) The Flex Shares have a contingent deferred sales charge. For a description of a possible sales charge, see Note 2 in Notes to 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. 85
STATEMENTS OF OPERATIONS (000) - ------------------------------------------------------------------------------------------------------------------------------------ STI CLASSIC EQUITY FUNDS FOR THE YEAR ENDED MAY 31, 2003 CAPITAL BALANCED APPRECIATION FUND FUND -------- ------------ Income: Dividend Income* $ 1,218 $ 10,965 Interest Income 6,656 365 Net Income from Securities Lending 41 73 Less: Foreign Taxes Withheld (11) (106) -------- --------- Total Income 7,904 11,297 -------- --------- Expenses: Investment Advisory Fees 2,719 14,425 Administration Fees 197 864 Distribution Fees -- Investor Shares 22 935 Distribution Fees -- Flex Shares 653 902 Distribution Fees -- B Shares -- -- Custody Fees 9 40 Transfer Agent Shareholder Servicing Fees 5 34 Transfer Agent Fees -- Trust Shares 17 18 Transfer Agent Fees -- Investor Shares 19 112 Transfer Agent Fees -- Flex Shares 92 190 Transfer Agent Out of Pocket Fees 11 38 Registration Fees 10 45 Professional Fees 9 38 Printing Fees 7 27 Trustee Fees 3 12 Other Fees 8 40 -------- --------- Total Expenses 3,781 17,720 -------- --------- Less: Investment Advisory Fees Waived (81) (251) Less: Distribution Fees Waived/Expenses Reimbursed -- Investor Shares (16) (141) Less: Distribution Fees Waived -- Flex Shares (41) (73) -------- --------- Net Expenses 3,643 17,255 -------- --------- Net Investment Income (Loss) 4,261 (5,958) -------- --------- Net Realized and Unrealized Gain (Loss) on Investments and Foreign Currency: Capital Gain Received from Investments in Affiliated Investment Companies* -- -- Net Realized Loss on Securities Sold* (22,027) (191,580) Net Realized Gain on Foreign Currency Transactions -- -- Net Change in Unrealized Appreciation on Foreign Currency and Translation of Other Assets and Liabilities in Foreign Currency -- -- Net Change in Unrealized Appreciation (Depreciation) on Investments* 14,697 47,666 -------- --------- Total Net Realized and Unrealized Loss on Investments and Foreign Currency (7,330) (143,914) -------- --------- Net Decrease in Net Assets from Operations $ (3,069) $(149,872) ======== =========
* Dividend income, capital gains received from investments in affiliated investment companies, net realized loss on securities sold and net change in unrealized appreciation (depreciation) on investments for the Life Vision Funds are attributable to the underlying investments in affiliated investment companies. Amounts designated as "--" are either $0 or have been rounded to $0. 86
GROWTH AND INFORMATION AND INTERNATIONAL INCOME TECHNOLOGY EQUITY FUND FUND FUND ---------- --------------- ------------- Income: Dividend Income* $ 14,239 $ 86 $ 5,321 Interest Income 105 17 25 Net Income from Securities Lending 17 21 33 Less: Foreign Taxes Withheld (33) (3) (537) --------- -------- -------- Total Income 14,328 121 4,842 --------- -------- -------- Expenses: Investment Advisory Fees 6,313 243 2,639 Administration Fees 483 15 146 Distribution Fees -- Investor Shares 80 -- 17 Distribution Fees -- Flex Shares 734 65 54 Distribution Fees -- B Shares -- -- -- Custody Fees 21 1 249 Transfer Agent Shareholder Servicing Fees 19 1 6 Transfer Agent Fees -- Trust Shares 17 11 17 Transfer Agent Fees -- Investor Shares 45 -- 23 Transfer Agent Fees -- Flex Shares 157 52 31 Transfer Agent Out of Pocket Fees 21 -- 6 Registration Fees 28 1 7 Professional Fees 20 1 6 Printing Fees 12 -- 5 Trustee Fees 7 -- 2 Other Fees 16 -- 2 --------- -------- -------- Total Expenses 7,973 390 3,210 --------- -------- -------- Less: Investment Advisory Fees Waived -- -- -- Less: Distribution Fees Waived/Expenses Reimbursed -- Investor Shares (65) -- (20) Less: Distribution Fees Waived -- Flex Shares (200) (48) (27) --------- -------- -------- Net Expenses 7,708 342 3,163 --------- -------- -------- Net Investment Income (Loss) 6,620 (221) 1,679 --------- -------- -------- Net Realized and Unrealized Gain (Loss) on Investments and Foreign Currency: Capital Gain Received from Investments in Affiliated Investment Companies* -- -- -- Net Realized Loss on Securities Sold* (81,525) (15,209) (44,637) Net Realized Gain on Foreign Currency Transactions -- -- 746 Net Change in Unrealized Appreciation on Foreign Currency and Translation of Other Assets and Liabilities in Foreign Currency -- -- 241 Net Change in Unrealized Appreciation (Depreciation) on Investments* (26,671) 4,224 740 --------- -------- -------- Total Net Realized and Unrealized Loss on Investments and Foreign Currency (108,196) (10,985) (42,910) --------- -------- -------- Net Decrease in Net Assets from Operations $(101,576) $(11,206) $(41,231) ========= ======== ========
INTERNATIONAL LIFE VISION EQUITY AGGRESSIVE GROWTH INDEX FUND FUND ------------- ------------------- Income: Dividend Income* $ 6,297 $ 158 Interest Income 3 -- Net Income from Securities Lending 47 -- Less: Foreign Taxes Withheld (653) -- -------- ------- Total Income 5,694 158 -------- ------- Expenses: Investment Advisory Fees 2,225 68 Administration Fees 170 19 Distribution Fees -- Investor Shares 19 -- Distribution Fees -- Flex Shares 28 -- Distribution Fees -- B Shares -- 1 Custody Fees 326 1 Transfer Agent Shareholder Servicing Fees 7 1 Transfer Agent Fees -- Trust Shares 17 17 Transfer Agent Fees -- Investor Shares 18 -- Transfer Agent Fees -- Flex Shares 20 -- Transfer Agent Out of Pocket Fees -- -- Registration Fees 7 1 Professional Fees 8 1 Printing Fees 5 -- Trustee Fees 2 -- Other Fees -- 2 -------- ------- Total Expenses 2,852 111 -------- ------- Less: Investment Advisory Fees Waived (212) (42) Less: Distribution Fees Waived/Expenses Reimbursed -- Investor Shares (14) -- Less: Distribution Fees Waived -- Flex Shares (17) -- -------- ------- Net Expenses 2,609 69 -------- ------- Net Investment Income (Loss) 3,085 89 -------- ------- Net Realized and Unrealized Gain (Loss) on Investments and Foreign Currency: Capital Gain Received from Investments in Affiliated Investment Companies* -- 30 Net Realized Loss on Securities Sold* (16,811) (1,580) Net Realized Gain on Foreign Currency Transactions 484 -- Net Change in Unrealized Appreciation on Foreign Currency and Translation of Other Assets and Liabilities in Foreign Currency 62 -- Net Change in Unrealized Appreciation (Depreciation) on Investments* (26,241) (1,995) -------- ------- Total Net Realized and Unrealized Loss on Investments and Foreign Currency (42,506) (3,545) -------- ------- Net Decrease in Net Assets from Operations $(39,421) $(3,456) ======== =======
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS. 87
STATEMENTS OF OPERATIONS (000) - ------------------------------------------------------------------------------------------------------------------------------------ STI CLASSIC EQUITY FUNDS FOR THE YEAR OR PERIOD ENDED MAY 31, 2003 LIFE VISION LIFE VISION LIFE VISION CONSERVATIVE GROWTH AND INCOME MODERATE FUND(1) FUND GROWTH FUND ------------ ----------------- ----------- Income: Dividend Income* $ 1 $ 1,088 $ 1,832 Interest Income -- -- -- Net Income from Securities Lending -- -- -- Less: Foreign Tax Withheld -- -- -- ---- ------- ------- Total Income 1 1,088 1,832 ---- ------- ------- Expenses: Investment Advisory Fees -- 159 216 Administration Fees -- 44 60 Distribution Fees -- Investor Shares -- -- -- Distribution Fees -- Flex Shares -- -- -- Distribution Fees -- B Shares -- 2 3 Custody Fees -- 1 2 Transfer Agent Shareholder Servicing Fees -- 2 2 Transfer Agent Fees -- Trust Shares -- 17 17 Transfer Agent Fees -- Investor Shares -- -- -- Transfer Agent Fees -- Flex Shares -- -- -- Transfer Agent Out of Pocket Fees -- 2 3 Registration Fees -- 2 3 Professional Fees -- 2 3 Printing Fees -- 1 2 Trustee Fees -- 1 1 Dividends on Securities Sold Short -- -- -- Other Fees -- 3 1 ---- ------- ------- Total Expenses -- 236 313 ---- ------- ------- Less: Investment Advisory Fees Waived -- (75) (94) Less: Distribution Fees Waived -- Investor Shares -- -- -- Less: Distribution Fees Waived/Expenses Reimbursed -- Flex Shares -- -- -- Less: Distribution Fees Waived -- B Shares -- (1) (1) ---- ------- ------- Net Expenses -- 160 218 ---- ------- ------- Net Investment Income (Loss) 1 928 1,614 ---- ------- ------- Net Realized and Unrealized Gain/(Loss) on Investments: Capital Gain Received from Investments in Affiliated Investment Companies* -- 73 91 Net Realized Gain (Loss) on Securities Sold* -- (4,254) (1,615) Net Change in Unrealized Appreciation (Depreciation) on Investments* 18 (1,727) (1,207) ---- ------- ------- Total Net Realized and Unrealized Gain (Loss) on Investments 18 (5,908) (2,731) ---- ------- ------- Net Increase (Decrease) in Net Assets from Operations $ 19 $(4,980) $(1,117) ==== ======= =======
* Dividend income, capital gains received from investments in affiliated investment companies, net realized loss on securities sold and net change in unrealized appreciation (depreciation) on investments for the Life Vision Funds are attributable to the underlying investments in affiliated investment companies. (1) The Life Vision Conservative Fund commenced operations March 11, 2003. Amounts designated as "--" are either $0 or have been rounded to $0. 88
- ------------------------------------------------------------------------------------------------------------------------------------ MID-CAP MID CAP SMALL CAP EQUITY VALUE EQUITY GROWTH STOCK FUND FUND FUND -------- ------------ ------------ Income: Dividend Income* $ 1,217 $ 2,024 $ 1,654 Interest Income 80 49 83 Net Income from Securities Lending 63 23 226 Less: Foreign Tax Withheld (1) (28) (20) -------- -------- -------- Total Income 1,359 2,068 1,943 -------- -------- -------- Expenses: Investment Advisory Fees 1,698 1,373 5,975 Administration Fees 102 76 358 Distribution Fees -- Investor Shares 43 -- 94 Distribution Fees -- Flex Shares 115 49 233 Distribution Fees -- B Shares -- -- -- Custody Fees 4 3 17 Transfer Agent Shareholder Servicing Fees 4 3 14 Transfer Agent Fees -- Trust Shares 17 16 22 Transfer Agent Fees -- Investor Shares 25 -- 36 Transfer Agent Fees -- Flex Shares 42 25 50 Transfer Agent Out of Pocket Fees -- 3 16 Registration Fees 6 5 19 Professional Fees 4 3 16 Printing Fees 2 1 11 Trustee Fees 1 1 5 Dividends on Securities Sold Short -- -- -- Other Fees -- 3 14 -------- -------- -------- Total Expenses 2,063 1,561 6,880 -------- -------- -------- Less: Investment Advisory Fees Waived (37) (110) -- Less: Distribution Fees Waived -- Investor Shares (21) -- (61) Less: Distribution Fees Waived/Expenses Reimbursed -- Flex Shares (34) (42) (34) Less: Distribution Fees Waived -- B Shares -- -- -- -------- -------- -------- Net Expenses 1,971 1,409 6,785 -------- -------- -------- Net Investment Income (Loss) (612) 659 (4,842) -------- -------- -------- Net Realized and Unrealized Gain/(Loss) on Investments: Capital Gain Received from Investments in Affiliated Investment Companies* -- -- -- Net Realized Gain (Loss) on Securities Sold* (17,032) (36,016) (73,786) Net Change in Unrealized Appreciation (Depreciation) on Investments* (6,819) 724 14,238 -------- -------- -------- Total Net Realized and Unrealized Gain (Loss) on Investments (23,851) (35,292) (59,548) -------- -------- -------- Net Increase (Decrease) in Net Assets from Operations $(24,463) $(34,633) $(64,390) ======== ======== ========
SMALL CAP TAX SENSITIVE VALUE VALUE EQUITY GROWTH STOCK INCOME STOCK VANTAGE FUND FUND FUND FUND ------------ ------------ ------------ -------- Income: Dividend Income* $ 9,805 $ 3,762 $ 17,386 $ 69 Interest Income 171 100 819 46 Net Income from Securities Lending 109 13 20 -- Less: Foreign Tax Withheld (231) (14) (80) -- -------- -------- -------- ------- Total Income 9,854 3,861 18,145 115 -------- -------- -------- ------- Expenses: Investment Advisory Fees 6,017 3,593 5,640 123 Administration Fees 361 215 486 6 Distribution Fees -- Investor Shares -- -- 206 -- Distribution Fees -- Flex Shares 305 1,204 469 10 Distribution Fees -- B Shares -- -- -- -- Custody Fees 16 10 23 -- Transfer Agent Shareholder Servicing Fees 14 8 19 -- Transfer Agent Fees -- Trust Shares 17 16 17 16 Transfer Agent Fees -- Investor Shares -- -- 64 -- Transfer Agent Fees -- Flex Shares 78 201 97 13 Transfer Agent Out of Pocket Fees 16 1 21 1 Registration Fees 19 13 25 -- Professional Fees 16 9 23 -- Printing Fees 10 5 16 -- Trustee Fees 5 3 7 -- Dividends on Securities Sold Short -- -- -- 27 Other Fees 19 -- 15 -- -------- -------- -------- ------- Total Expenses 6,893 5,278 7,128 196 -------- -------- -------- ------- Less: Investment Advisory Fees Waived -- -- -- (8) Less: Distribution Fees Waived -- Investor Shares -- -- (26) -- Less: Distribution Fees Waived/Expenses Reimbursed -- Flex Shares (57) (109) (36) (15) Less: Distribution Fees Waived -- B Shares -- -- -- -- -------- -------- -------- ------- Net Expenses 6,836 5,169 7,066 173 -------- -------- -------- ------- Net Investment Income (Loss) 3,018 (1,308) 11,079 (58) -------- -------- -------- ------- Net Realized and Unrealized Gain/(Loss) on Investments: Capital Gain Received from Investments in Affiliated Investment Companies* -- -- -- -- Net Realized Gain (Loss) on Securities Sold* 20,540 (64,791) (77,218) (1,511) Net Change in Unrealized Appreciation (Depreciation) on Investments* (63,220) 16,858 (14,271) 291 -------- -------- -------- ------- Total Net Realized and Unrealized Gain (Loss) on Investments (42,680) (47,933) (91,489) (1,220) -------- -------- -------- ------- Net Increase (Decrease) in Net Assets from Operations $(39,662) $(49,241) $(80,410) $(1,278) ======== ======== ======== =======
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS. 89
STATEMENTS OF CHANGES IN NET ASSETS (000) - ------------------------------------------------------------------------------------------------------------------------------------ STI CLASSIC EQUITY FUNDS FOR THE YEARS ENDED MAY 31, CAPITAL BALANCED FUND APPRECIATION FUND ------------------------- ------------------------ 06/01/02- 06/01/01- 06/01/02- 06/01/01- 05/31/03 05/31/02 05/31/03 05/31/02 ---------- ---------- ---------- ---------- Operations: Net Investment Income (Loss) $ 4,261 $ 4,563 $ (5,958) $ (10,142) Net Realized Gain (Loss) on Securities Sold (22,027) 2,199 (191,580) (143) Net Realized Gain (Loss) on Foreign Currency Transactions -- -- -- -- Net Change in Unrealized Appreciation on Foreign Currency and Translation of Other Assets and Liabilities in Foreign Currency -- -- -- -- Net Change in Unrealized Appreciation (Depreciation) on Investments 14,697 (17,949) 47,666 (165,813) -------- -------- ---------- ---------- Net Decrease in Net Assets from Operations (3,069) (11,187) (149,872) (176,098) -------- -------- ---------- ---------- Dividends and Distributions to Shareholders: Net Investment Income: Trust Shares (4,267) (4,065) -- -- Investor Shares (136) (129) -- -- Flex Shares (618) (591) -- -- Capital Gains: Trust Shares -- (5,781) -- (10,431) Investor Shares -- (213) -- (1,696) Flex Shares -- (1,844) -- (1,028) -------- -------- ---------- ---------- Total Dividends and Distributions (5,021) (12,623) -- (13,155) -------- -------- ---------- ---------- Capital Transactions (1): Trust Shares: Proceeds from Shares Issued 64,673 92,218 243,462 545,325 Reinvestment of Cash Distributions 4,061 9,625 -- 8,702 Cost of Shares Repurchased (75,973) (52,097) (237,698) (378,030) -------- -------- ---------- ---------- Increase (Decrease) in Net Assets From Trust Share Transactions (7,239) 49,746 5,764 175,997 -------- -------- ---------- ---------- Investor Shares: Proceeds from Shares Issued 1,079 2,760 23,224 9,448 Reinvestment of Cash Distributions 134 338 -- 1,668 Cost of Shares Repurchased (1,735) (1,259) (27,320) (25,945) -------- -------- ---------- ---------- Increase (Decrease) in Net Assets From Investor Share Transactions (522) 1,839 (4,096) (14,829) -------- -------- ---------- ---------- Flex Shares: Proceeds from Shares Issued 16,361 26,377 22,663 38,048 Reinvestment of Cash Distributions 584 2,319 -- 1,003 Cost of Shares Repurchased (22,271) (15,941) (26,440) (25,421) -------- -------- ---------- ---------- Increase (Decrease) in Net Assets From Flex Share Transactions (5,326) 12,755 (3,777) 13,630 -------- -------- ---------- ---------- Increase (Decrease) in Net Assets From Share Transactions (13,087) 64,340 (2,109) 174,798 -------- -------- ---------- ---------- Total Increase (Decrease) in Net Assets (21,177) 40,530 (151,981) (14,455) -------- -------- ---------- ---------- Net Assets: Beginning of Year 325,504 284,974 1,478,523 1,492,978 -------- -------- ---------- ---------- End of Year $304,327 $325,504 $1,326,542 $1,478,523 ======== ======== ========== ==========
(1) See Note 5 in Notes to Financial Statements for additional information. Amounts designated as "--" are either $0 or have been rounded to $0. 90
- ------------------------------------------------------------------------------------------------------------------------------------ GROWTH AND INFORMATION AND TECHNOLOGY INCOME FUND FUND ------------------------ -------------------------- 06/01/02- 06/01/01- 06/01/02- 06/01/01- 05/31/03 05/31/02 05/31/03 05/31/02 --------- --------- ---------- ---------- Operations: Net Investment Income (Loss) $ 6,620 $ 4,992 $ (221) $ (810) Net Realized Gain (Loss) on Securities Sold (81,525) (2,065) (15,209) (34,411) Net Realized Gain (Loss) on Foreign Currency Transactions -- -- -- -- Net Change in Unrealized Appreciation on Foreign Currency and Translation of Other Assets and Liabilities in Foreign Currency -- -- -- -- Net Change in Unrealized Appreciation (Depreciation) on Investments (26,671) (81,292) 4,224 (3,329) --------- --------- -------- -------- Net Decrease in Net Assets from Operations (101,576) (78,365) (11,206) (38,550) --------- --------- -------- -------- Dividends and Distributions to Shareholders: Net Investment Income: Trust Shares (6,291) (4,300) -- -- Investor Shares (270) (135) -- -- Flex Shares (125) -- -- -- Capital Gains: Trust Shares -- -- -- -- Investor Shares -- -- -- -- Flex Shares -- -- -- -- --------- --------- -------- -------- Total Dividends and Distributions (6,686) (4,435) -- -- --------- --------- -------- -------- Capital Transactions (1): Trust Shares: Proceeds from Shares Issued 97,378 153,837 3,953 12,552 Reinvestment of Cash Distributions 2,307 1,608 -- -- Cost of Shares Repurchased (200,850) (158,642) (15,842) (37,401) --------- --------- -------- -------- Increase (Decrease) in Net Assets From Trust Share Transactions (101,165) (3,197) (11,889) (24,849) --------- --------- -------- -------- Investor Shares: Proceeds from Shares Issued 12,024 7,129 -- -- Reinvestment of Cash Distributions 247 122 -- -- Cost of Shares Repurchased (8,883) (7,307) -- -- --------- --------- -------- -------- Increase (Decrease) in Net Assets From Investor Share Transactions 3,388 (56) -- -- --------- --------- -------- -------- Flex Shares: Proceeds from Shares Issued 16,261 40,844 823 2,266 Reinvestment of Cash Distributions 119 -- -- -- Cost of Shares Repurchased (24,930) (16,988) (2,373) (5,097) --------- --------- -------- -------- Increase (Decrease) in Net Assets From Flex Share Transactions (8,550) 23,856 (1,550) (2,831) --------- --------- -------- -------- Increase (Decrease) in Net Assets From Share Transactions (106,327) 20,603 (13,439) (27,680) --------- --------- -------- -------- Total Increase (Decrease) in Net Assets (214,589) (62,197) (24,645) (66,230) --------- --------- -------- -------- Net Assets: Beginning of Year 924,017 986,214 42,919 109,149 --------- --------- -------- -------- End of Year $709,428 $ 924,017 $ 18,274 $ 42,919 ========= ========= ======== ========
(1) See Note 5 in Notes to Financial Statements for additional information. Amounts designated as "--" are either $0 or have been rounded to $0.
- ------------------------------------------------------------------------------------------------------------------------------------ INTERNATIONAL EQUITY INTERNATIONAL EQUITY FUND INDEX FUND -------------------------- ------------------------- 06/01/02- 06/01/01- 06/01/02- 06/01/01- 05/31/03 05/31/02 05/31/03 05/31/02 ----------- ----------- ----------- ---------- Operations: Net Investment Income (Loss) $ 1,679 $ 785 $ 3,085 $ 1,447 Net Realized Gain (Loss) on Securities Sold (44,637) (31,939) (16,811) (36,218) Net Realized Gain (Loss) on Foreign Currency Transactions 746 48 484 (321) Net Change in Unrealized Appreciation on Foreign Currency and Translation of Other Assets and Liabilities in Foreign Currency 241 151 62 61 Net Change in Unrealized Appreciation (Depreciation) on Investments 740 12,345 (26,241) 8,423 --------- --------- -------- --------- Net Decrease in Net Assets from Operations (41,231) (18,610) (39,421) (26,608) --------- --------- -------- --------- Dividends and Distributions to Shareholders: Net Investment Income: Trust Shares (1,433) -- (1,078) (767) Investor Shares (19) -- (4) (11) Flex Shares -- -- -- -- Capital Gains: Trust Shares -- -- -- -- Investor Shares -- -- -- -- Flex Shares -- -- -- -- --------- --------- -------- --------- Total Dividends and Distributions (1,452) -- (1,082) (778) --------- --------- -------- --------- Capital Transactions (1): Trust Shares: Proceeds from Shares Issued 86,628 122,777 62,225 134,438 Reinvestment of Cash Distributions 611 -- 835 767 Cost of Shares Repurchased (108,037) (59,774) (62,128) (57,264) --------- --------- -------- --------- Increase (Decrease) in Net Assets From Trust Share Transactions (20,798) 63,003 932 77,941 --------- --------- -------- --------- Investor Shares: Proceeds from Shares Issued 14,843 204,662 21,764 129,643 Reinvestment of Cash Distributions 18 -- 4 11 Cost of Shares Repurchased (13,138) (207,235) (15,195) (130,086) --------- --------- -------- --------- Increase (Decrease) in Net Assets From Investor Share Transactions 1,723 (2,573) 6,573 (432) --------- --------- -------- --------- Flex Shares: Proceeds from Shares Issued 6,250 7,548 4,554 7,290 Reinvestment of Cash Distributions -- -- -- -- Cost of Shares Repurchased (6,195) (7,940) (4,487) (7,786) --------- --------- -------- --------- Increase (Decrease) in Net Assets From Flex Share Transactions 55 (392) 67 (496) --------- --------- -------- --------- Increase (Decrease) in Net Assets From Share Transactions (19,020) 60,038 7,572 77,013 --------- --------- -------- --------- Total Increase (Decrease) in Net Assets (61,703) 41,428 (32,931) 49,627 --------- --------- -------- --------- Net Assets: Beginning of Year 264,830 223,402 294,671 245,044 --------- --------- -------- --------- End of Year $ 203,127 $ 264,830 $261,740 $ 294,671 ========= ========= ======== =========
(1) See Note 5 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. 91
STATEMENTS OF CHANGES IN NET ASSETS (000) - ------------------------------------------------------------------------------------------------------------------------------------ STI CLASSIC EQUITY FUNDS FOR THE YEARS OR PERIODS ENDED MAY 31, LIFE VISION AGGRESSIVE LIFE VISION GROWTH FUND CONSERVATIVE FUND -------------------------- ------------------ 06/01/02- 06/01/01- 03/11/03**- 05/31/03 05/31/02 05/31/03 ---------- --------- ----------- Operations: Net Investment Income (Loss)* $ 89 $ 47 $ 1 Capital Gain Received from Investments in Affiliated Investment Companies* 30 80 -- Net Realized Loss on Securities Sold* (1,580) (1,052) -- Net Change in Unrealized Appreciation (Depreciation) on Investments* (1,995) (863) 18 ------- ------- ---- Net Increase (Decrease) in Net Assets from Operations (3,456) (1,788) 19 ------- ------- ---- Dividends to Shareholders: Net Investment Income: Trust Shares (92) (57) -- Investor Shares -- -- -- Flex Shares -- -- -- B Shares -- -- -- ------- ------- ---- Total Dividends (92) (57) -- ------- ------- ---- Capital Transactions (1): Trust Shares: Proceeds from Shares Issued 5,003 19,227 -- Reinvestment of Cash Distributions 91 57 -- Redemption Fees -- -- -- Cost of Shares Repurchased (7,185) (6,977) -- ------- ------- ---- Increase (Decrease) in Net Assets From Trust Share Transactions (2,091) 12,307 -- ------- ------- ---- Investor Shares: Proceeds from Shares Issued -- -- -- Reinvestment of Cash Distributions -- -- -- Cost of Shares Repurchased -- -- -- ------- ------- ---- Increase (Decrease) in Net Assets From Investor Share Transactions -- -- -- ------- ------- ---- Flex Shares: Proceeds from Shares Issued -- -- -- Reinvestment of Cash Distributions -- -- -- Cost of Shares Repurchased -- -- -- ------- ------- ---- Increase (Decrease) in Net Assets From Flex Share Transactions -- -- -- ------- ------- ---- B Shares (2): Proceeds from Shares Issued 975 -- 811 Reinvestment of Cash Distributions -- -- -- Cost of Shares Repurchased (1) -- (30) ------- ------- ---- Increase in Net Assets From B Share Transactions 974 -- 781 ------- ------- ---- Increase (Decrease) in Net Assets From Share Transactions (1,117) 12,307 781 ------- ------- ---- Total Increase (Decrease) in Net Assets (4,665) 10,462 800 ------- ------- ---- Net Assets: Beginning of Period 34,398 23,936 -- ------- ------- ---- End of Period $29,733 $34,398 $800 ======= ======= ====
* Net investment income (loss),capital gains received from investments in affiliated investment companies, net realized loss on securities sold and net change in unrealized appreciation (depreciation) on investments and for the Life Vision Funds are attributable to the underlying investments in affiliated investment companies. ** Commencement of Operations. (1) See Note 5 in Notes to Financial Statements for additional information (2) B Shares were offered beginning on March 11, 2003 for the Life Vision Aggressive Growth Fund, the Life Vision Conservative Fund, the Life Vision Growth and Income Fund and the Life Vision Moderate Growth Fund. Amounts designated as "--" are either $0 or have been rounded to $0. 92
- ------------------------------------------------------------------------------------------------------------------------------------ LIFE VISION LIFE VISION GROWTH AND INCOME FUND MODERATE GROWTH FUND ---------------------------- ----------------------- 06/01/02- 06/01/01- 06/01/02- 06/01/01- 05/31/03 05/31/02 05/31/03 05/31/02 ------------ ----------- ---------- ---------- Operations: Net Investment Income (Loss)* $ 928 $ 639 $ 1,614 $ 1,488 Capital Gain Received from Investments in Affiliated Investment Companies* 73 73 91 150 Net Realized Loss on Securities Sold* (4,254) (2,267) (1,615) (4,949) Net Change in Unrealized Appreciation (Depreciation) on Investments* (1,727) 290 (1,207) 2,662 -------- -------- -------- -------- Net Increase (Decrease) in Net Assets from Operations (4,980) (1,265) (1,117) (649) -------- -------- -------- -------- Dividends to Shareholders: Net Investment Income: Trust Shares (931) (598) (1,621) (1,472) Investor Shares -- -- -- -- Flex Shares -- -- -- -- B Shares -- -- (1) -- -------- -------- -------- -------- Total Dividends (931) (598) (1,622) (1,472) -------- -------- -------- -------- Capital Transactions (1): Trust Shares: Proceeds from Shares Issued 19,612 53,119 34,474 36,185 Reinvestment of Cash Distributions 927 595 1,615 1,452 Redemption Fees -- -- -- -- Cost of Shares Repurchased (32,451) (12,006) (28,076) (20,353) -------- -------- -------- -------- Increase (Decrease) in Net Assets From Trust Share Transactions (11,912) 41,708 8,013 17,284 -------- -------- -------- -------- Investor Shares: Proceeds from Shares Issued -- -- -- -- Reinvestment of Cash Distributions -- -- -- -- Cost of Shares Repurchased -- -- -- -- -------- -------- -------- -------- Increase (Decrease) in Net Assets From Investor Share Transactions -- -- -- -- -------- -------- -------- -------- Flex Shares: Proceeds from Shares Issued -- -- -- -- Reinvestment of Cash Distributions -- -- -- -- Cost of Shares Repurchased -- -- -- -- -------- -------- -------- -------- Increase (Decrease) in Net Assets From Flex Share Transactions -- -- -- -- -------- -------- -------- -------- B Shares (2): Proceeds from Shares Issued 1,896 -- 2,605 -- Reinvestment of Cash Distributions -- -- 1 -- Cost of Shares Repurchased (2) -- (59) -- -------- -------- -------- -------- Increase in Net Assets From B Share Transactions 1,894 -- 2,547 -- -------- -------- -------- -------- Increase (Decrease) in Net Assets From Share Transactions (10,018) 41,708 10,560 17,284 -------- -------- -------- -------- Total Increase (Decrease) in Net Assets (15,929) 39,845 7,821 15,163 -------- -------- -------- -------- Net Assets: Beginning of Period 77,395 37,550 88,592 73,429 -------- -------- -------- -------- End of Period $ 61,466 $ 77,395 $ 96,413 $ 88,592 ======== ======== ======== ========
MID-CAP EQUITY FUND -------------------------- 06/01/02- 06/01/01- 05/31/03 05/31/02 ----------- ---------- Operations: Net Investment Income (Loss)* $ (612) $ (534) Capital Gain Received from Investments in Affiliated Investment Companies* -- -- Net Realized Loss on Securities Sold* (17,032) (32,539) Net Change in Unrealized Appreciation (Depreciation) on Investments* (6,819) 10,660 --------- --------- Net Increase (Decrease) in Net Assets from Operations (24,463) (22,413) --------- --------- Dividends to Shareholders: Net Investment Income: Trust Shares -- -- Investor Shares -- -- Flex Shares -- -- B Shares -- -- --------- --------- Total Dividends -- -- --------- --------- Capital Transactions (1): Trust Shares: Proceeds from Shares Issued 126,939 254,418 Reinvestment of Cash Distributions -- -- Redemption Fees 83 -- Cost of Shares Repurchased (159,005) (219,234) --------- --------- Increase (Decrease) in Net Assets From Trust Share Transactions (31,983) 35,184 --------- --------- Investor Shares: Proceeds from Shares Issued 4,798 5,382 Reinvestment of Cash Distributions -- -- Cost of Shares Repurchased (2,409) (5,676) --------- --------- Increase (Decrease) in Net Assets From Investor Share Transactions 2,389 (294) --------- --------- Flex Shares: Proceeds from Shares Issued 3,460 6,756 Reinvestment of Cash Distributions -- -- Cost of Shares Repurchased (3,677) (4,054) --------- --------- Increase (Decrease) in Net Assets From Flex Share Transactions (217) 2,702 --------- --------- B Shares (2): Proceeds from Shares Issued -- -- Reinvestment of Cash Distributions -- -- Cost of Shares Repurchased -- -- --------- --------- Increase in Net Assets From B Share Transactions -- -- --------- --------- Increase (Decrease) in Net Assets From Share Transactions (29,811) 37,592 --------- --------- Total Increase (Decrease) in Net Assets (54,274) 15,179 --------- --------- Net Assets: Beginning of Period 196,516 181,337 --------- --------- End of Period $ 142,242 $ 196,516 ========= =========
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS. 93
STATEMENTS OF CHANGES IN NET ASSETS (000) - ------------------------------------------------------------------------------------------------------------------------------------ STI CLASSIC EQUITY FUNDS FOR THE YEARS OR PERIODS ENDED MAY 31, MID CAP SMALL CAP VALUE EQUITY GROWTH FUND STOCK FUND ---------------------- ------------------------ 06/01/02- 11/30/01*- 06/01/02- 06/01/01- 05/31/03 05/31/02 05/31/03 05/31/02 ---------- ---------- ----------- ---------- Operations: Net Investment Income (Loss) $ 659 $ 153 $ (4,842) $ (6,319) Net Realized Gain (Loss) on Securities Sold (36,016) 2,242 (73,786) 12,904 Net Change in Unrealized Appreciation (Depreciation) on Investments 724 3,288 14,238 (43,483) -------- -------- --------- -------- Net Increase (Decrease) in Net Assets from Operations (34,633) 5,683 (64,390) (36,898) -------- -------- --------- -------- Dividends and Distributions to Shareholders: Net Investment Income: Trust Shares (552) (128) -- -- Investor Shares -- -- -- -- Flex Shares (4) -- -- -- Capital Gains: Trust Shares (2,137) -- (8,364) (2,201) Investor Shares -- -- (313) (108) Flex Shares (108) -- (427) (106) -------- -------- --------- -------- Total Dividends and Distributions (2,801) (128) (9,104) (2,415) -------- -------- --------- -------- Capital Transactions (1): Trust Shares: Proceeds from Shares Issued 42,357 187,081 138,559 204,546 Reinvestment of Cash Distributions 1,307 22 6,573 1,813 Cost of Shares Repurchased (82,431) (17,706) (104,086) (86,510) -------- -------- --------- -------- Increase (Decrease) in Net Assets From Trust Share Transactions (38,767) 169,397 41,046 119,849 -------- -------- --------- -------- Investor Shares: Proceeds from Shares Issued -- -- 7,284 6,448 Reinvestment of Cash Distributions -- -- 296 102 Cost of Shares Repurchased -- -- (7,682) (8,754) -------- -------- --------- -------- Decrease in Net Assets From Investor Share Transactions -- -- (102) (2,204) -------- -------- --------- -------- Flex Shares (2): Proceeds from Shares Issued 3,348 5,565 6,509 10,866 Reinvestment of Cash Distributions 98 -- 414 104 Cost of Shares Repurchased (1,971) (193) (6,817) (6,387) -------- -------- --------- -------- Increase (Decrease) in Net Assets From Flex Share Transactions 1,475 5,372 106 4,583 -------- -------- --------- -------- Increase (Decrease) in Net Assets From Share Transactions (37,292) 174,769 41,050 122,228 -------- -------- --------- -------- Total Increase (Decrease) in Net Assets (74,726) 180,324 (32,444) 82,915 -------- -------- --------- -------- Net Assets: Beginning of Period 180,324 -- 647,646 564,731 -------- -------- --------- -------- End of Period $105,598 $180,324 $ 615,202 $647,646 ======== ======== ========= ========
* Commencement of Operations. (1) See Note 5 in Notes to Financial Statements for additional information (2) Flex shares were offered beginning on March 11, 2002 for the Vantage Fund. Amounts designated as "--" are either $0 or have been rounded to $0. 94
- ------------------------------------------------------------------------------------------------------------------------------------ TAX SENSITIVE SMALL CAP VALUE GROWTH EQUITY FUND STOCK FUND ----------------------- ---------------------- 06/01/02- 06/01/01- 06/01/02- 06/01/01- 05/31/03 05/31/02 05/31/03 05/31/02 ---------- ---------- ---------- ---------- Operations: Net Investment Income (Loss) $ 3,018 $ 3,146 $ (1,308) $ (2,575) Net Realized Gain (Loss) on Securities Sold 20,540 7,370 (64,791) (34,842) Net Change in Unrealized Appreciation (Depreciation) on Investments (63,220) 82,755 16,858 (45,038) --------- --------- --------- --------- Net Increase (Decrease) in Net Assets from Operations (39,662) 93,271 (49,241) (82,455) --------- --------- --------- --------- Dividends and Distributions to Shareholders: Net Investment Income: Trust Shares (2,605) (3,500) -- -- Investor Shares -- (15) -- -- Flex Shares -- -- -- -- Capital Gains: Trust Shares -- -- -- -- Investor Shares -- -- -- -- Flex Shares -- -- -- -- --------- --------- --------- --------- Total Dividends and Distributions (2,605) (3,515) -- -- --------- --------- --------- --------- Capital Transactions (1): Trust Shares: Proceeds from Shares Issued 119,973 226,657 79,785 17,347 Reinvestment of Cash Distributions 1,424 2,013 -- -- Cost of Shares Repurchased (176,975) (102,960) (97,881) (181,586) --------- --------- --------- --------- Increase (Decrease) in Net Assets From Trust Share Transactions (55,578) 125,710 (18,096) (164,239) --------- --------- --------- --------- Investor Shares: Proceeds from Shares Issued -- -- -- -- Reinvestment of Cash Distributions -- -- -- -- Cost of Shares Repurchased -- -- -- -- --------- --------- --------- --------- Decrease in Net Assets From Investor Share Transactions -- -- -- -- --------- --------- --------- --------- Flex Shares (2): Proceeds from Shares Issued 13,859 21,029 7,888 19,925 Reinvestment of Cash Distributions -- 15 -- -- Cost of Shares Repurchased (10,389) (2,670) (44,717) (54,358) --------- --------- --------- --------- Increase (Decrease) in Net Assets From Flex Share Transactions 3,470 18,374 (36,829) (34,433) --------- --------- --------- --------- Increase (Decrease) in Net Assets From Share Transactions (52,108) 144,084 (54,925) (198,672) --------- --------- --------- --------- Total Increase (Decrease) in Net Assets (94,375) 233,840 (104,166) (281,127) --------- --------- --------- --------- Net Assets: Beginning of Period 646,907 413,067 412,680 693,807 --------- --------- --------- --------- End of Period $ 552,532 $ 646,907 $ 308,514 $ 412,680 ========= ========= ========= =========
VALUE INCOME VANTAGE STOCK FUND FUND ----------------------- ---------------------- 06/01/02- 06/01/01- 06/01/02- 11/30/01*- 05/31/03 05/31/02 05/31/03 05/31/02 ----------- ---------- ---------- ---------- Operations: Net Investment Income (Loss) $ 11,079 $ 8,024 $ (58) $ (28) Net Realized Gain (Loss) on Securities Sold (77,218) 18,010 (1,511) (421) Net Change in Unrealized Appreciation (Depreciation) on Investments (14,271) (60,823) 291 (68) --------- --------- ------- ------- Net Increase (Decrease) in Net Assets from Operations (80,410) (34,789) (1,278) (517) --------- --------- ------- ------- Dividends and Distributions to Shareholders: Net Investment Income: Trust Shares (9,401) (7,740) -- -- Investor Shares (735) (629) -- -- Flex Shares (189) (41) -- -- Capital Gains: Trust Shares -- -- -- -- Investor Shares -- -- -- -- Flex Shares -- -- -- -- --------- --------- ------- ------- Total Dividends and Distributions (10,325) (8,410) -- -- --------- --------- ------- ------- Capital Transactions (1): Trust Shares: Proceeds from Shares Issued 189,197 166,044 1,489 9,433 Reinvestment of Cash Distributions 7,198 6,531 -- -- Cost of Shares Repurchased (126,339) (155,718) (4,953) (158) --------- --------- ------- ------- Increase (Decrease) in Net Assets From Trust Share Transactions 70,056 16,857 (3,464) 9,275 --------- --------- ------- ------- Investor Shares: Proceeds from Shares Issued 10,612 4,311 -- -- Reinvestment of Cash Distributions 705 607 -- -- Cost of Shares Repurchased (12,542) (10,581) -- -- --------- --------- ------- ------- Decrease in Net Assets From Investor Share Transactions (1,225) (5,663) -- -- --------- --------- ------- ------- Flex Shares (2): Proceeds from Shares Issued 8,232 8,816 436 919 Reinvestment of Cash Distributions 181 40 -- -- Cost of Shares Repurchased (11,412) (12,069) (276) (1) --------- --------- ------- ------- Increase (Decrease) in Net Assets From Flex Share Transactions (2,999) (3,213) 160 918 --------- --------- ------- ------- Increase (Decrease) in Net Assets From Share Transactions 65,832 7,981 (3,304) 10,193 --------- --------- ------- ------- Total Increase (Decrease) in Net Assets (24,903) (35,218) (4,582) 9,676 --------- --------- ------- ------- Net Assets: Beginning of Period 821,103 856,321 9,676 -- --------- --------- ------- ------- End of Period $ 796,200 $ 821,103 $ 5,094 $ 9,676 ========= ========= ======= =======
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS. 95
FINANCIAL HIGHLIGHTS - ------------------------------------------------------------------------------------------------------------------------------------ STI CLASSIC EQUITY FUNDS FOR THE YEARS ENDED MAY 31, (UNLESS OTHERWISE INDICATED) FOR A SHARE OUTSTANDING THROUGHOUT THE PERIODS NET ASSET NET REALIZED AND VALUE, NET UNREALIZED GAINS TOTAL BEGINNING INVESTMENT (LOSSES) FROM OF PERIOD INCOME (LOSS) ON INVESTMENTS OPERATIONS ---------- ------------ ---------------- ---------- BALANCED FUND Trust Shares 2003 $12.18 $ 0.20 $(0.23) $(0.03) 2002 13.18 0.23 (0.65) (0.42) 2001 13.37 0.30 0.12 0.42 2000 13.26 0.32 0.33 0.65 1999 13.09 0.28 1.09 1.37 Investor Shares 2003 $12.24 $0.16 $(0.24) $(0.08) 2002 13.24 0.18 (0.64) (0.46) 2001 13.43 0.27 0.11 0.38 2000 13.32 0.29 0.31 0.60 1999 13.14 0.24 1.10 1.34 Flex Shares 2003 $12.07 $0.08 $(0.22) $(0.14) 2002 13.07 0.10 (0.65) (0.55) 2001 13.27 0.16 0.11 0.27 2000 13.17 0.17 0.33 0.50 1999 13.02 0.16 1.07 1.23 CAPITAL APPRECIATION FUND Trust Shares 2003(2) $12.24 $(0.03) $(1.19) $(1.22) 2002 13.89 -- (1.53) (1.53) 2001 17.12 (0.05) (0.38) (0.43) 2000 16.62 0.02 1.40 1.42 1999 16.48 0.05 2.70 2.75 Investor Shares 2003(2) $11.89 $(0.10) $(1.16) $(1.26) 2002 13.59 (0.10) (1.48) (1.58) 2001 16.91 (0.14) (0.38) (0.52) 2000 16.53 (0.11) 1.41 1.30 1999 16.43 (0.05) 2.70 2.65 Flex Shares 2003(2) $11.40 $(0.14) $(1.11) $(1.25) 2002 13.09 (0.06) (1.51) (1.57) 2001 16.45 (0.16) (0.40) (0.56) 2000 16.18 (0.24) 1.43 1.19 1999 16.22 (0.09) 2.60 2.51 GROWTH AND INCOME FUND (A) Trust Shares 2003 $13.80 $0.13 $(1.60) $(1.47) 2002 15.05 0.09 (1.26) (1.17) 2001 15.53 0.07 (0.04) 0.03 2000 16.09 0.11 0.55 0.66 1999(1) 15.10 0.04 1.97 2.01 For the year ended November 30: 1998 16.55 0.09 1.64 1.73 Investor Shares 2003 $13.91 $0.11 $(1.61) $(1.50) 2002 15.17 0.06 (1.27) (1.21) 2001 15.65 0.04 (0.04) -- 2000 16.21 0.09 0.55 0.64 1999(1) 15.21 0.04 1.99 2.03 For the year ended November 30: 1998 16.64 0.10 1.66 1.76 Flex Shares 2003 $13.66 $ -- $(1.56) $(1.56) 2002 14.96 (0.02) (1.28) (1.30) 2001 15.49 (0.05) (0.05) (0.10) 2000 16.10 -- 0.51 0.51 1999(1) 15.14 (0.01) 1.97 1.96 For the year ended November 30: 1998 16.59 (0.01) 1.64 1.63
DIVIDENDS TOTAL FROM NET DISTRIBUTIONS DIVIDENDS INVESTMENT FROM REALIZED AND INCOME CAPITAL GAINS DISTRIBUTIONS ---------- ------------- ------------- BALANCED FUND Trust Shares 2003 $(0.23) $ -- $(0.23) 2002 (0.24) (0.34) (0.58) 2001 (0.31) (0.30) (0.61) 2000 (0.30) (0.24) (0.54) 1999 (0.28) (0.92) (1.20) Investor Shares 2003 $(0.19) $ -- $(0.19) 2002 (0.20) (0.34) (0.54) 2001 (0.27) (0.30) (0.57) 2000 (0.25) (0.24) (0.49) 1999 (0.24) (0.92) (1.16) Flex Shares 2003 $(0.11) $ -- $(0.11) 2002 (0.11) (0.34) (0.45) 2001 (0.17) (0.30) (0.47) 2000 (0.16) (0.24) (0.40) 1999 (0.16) (0.92) (1.08) CAPITAL APPRECIATION FUND Trust Shares 2003(2) $ -- $ -- $ -- 2002 -- (0.12) (0.12) 2001 -- (2.80) (2.80) 2000 -- (0.92) (0.92) 1999 (0.06) (2.55) (2.61) Investor Shares 2003(2) $ -- $ -- $ -- 2002 -- (0.12) (0.12) 2001 -- (2.80) (2.80) 2000 -- (0.92) (0.92) 1999 -- (2.55) (2.55) Flex Shares 2003(2) $ -- $ -- $ -- 2002 -- (0.12) (0.12) 2001 -- (2.80) (2.80) 2000 -- (0.92) (0.92) 1999 -- (2.55) (2.55) GROWTH AND INCOME FUND (A) Trust Shares 2003 $(0.12) $ -- $(0.12) 2002 (0.08) -- (0.08) 2001 (0.08) (0.43) (0.51) 2000 (0.10) (1.12) (1.22) 1999(1) (0.02) (1.00) (1.02) For the year ended November 30: 1998 (0.09) (3.09) (3.18) Investor Shares 2003 $(0.10) $ -- $(0.10) 2002 (0.05) -- (0.05) 2001 (0.05) (0.43) (0.48) 2000 (0.08) (1.12) (1.20) 1999(1) (0.03) (1.00) (1.03) For the year ended November 30: 1998 (0.10) (3.09) (3.19) Flex Shares 2003 $(0.02) $ -- $(0.02) 2002 -- -- -- 2001 -- (0.43) (0.43) 2000 -- (1.12) (1.12) 1999(1) -- (1.00) (1.00) For the year ended November 30: 1998 -- (3.08) (3.08) + Returns are for the period indicated and have not been annualized. Total return figures do not include 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) Per share data calculated using average shares outstanding method. 96
- ------------------------------------------------------------------------------------------------------------------------------------ NET ASSET NET ASSETS, RATIO OF VALUE, END TOTAL END OF NET EXPENSES TO OF PERIOD RETURN+ PERIOD (000) AVERAGE NET ASSETS ---------- ------- ------------ ------------------ BALANCED FUND Trust Shares 2003 $11.92 (0.14)% $ 228,475 1.02% 2002 12.18 (3.29) 241,604 1.02 2001 13.18 3.24 209,316 1.01 2000 13.37 5.02 223,634 0.97 1999 13.26 10.98 251,752 0.97 Investor Shares 2003 $11.97 (0.54)% $ 8,285 1.33% 2002 12.24 (3.57) 9,020 1.33 2001 13.24 2.91 7,834 1.32 2000 13.43 4.66 9,627 1.27 1999 13.32 10.70 14,962 1.27 Flex Shares 2003 $11.82 (1.15)% $ 67,567 2.09% 2002 12.07 (4.33) 74,880 2.09 2001 13.07 2.11 67,824 2.07 2000 13.27 3.88 64,322 2.03 1999 13.17 9.84 73,526 2.03 CAPITAL APPRECIATION FUND Trust Shares 2003(2) $11.02 (9.97)% $1,090,549 1.22% 2002 12.24 (11.06) 1,204,445 1.22 2001 13.89 (3.74) 1,177,933 1.21 2000 17.12 8.98 1,296,927 1.17 1999 16.62 17.83 1,966,842 1.17 Investor Shares 2003(2) $10.63 (10.60)% $ 141,488 1.88% 2002 11.89 (11.68) 163,155 1.88 2001 13.59 (4.38) 202,548 1.86 2000 16.91 8.29 251,421 1.82 1999 16.53 17.20 311,120 1.82 Flex Shares 2003(2) $10.15 (10.96)% $ 94,505 2.35% 2002 11.40 (12.05) 110,923 2.35 2001 13.09 (4.79) 112,497 2.33 2000 16.45 7.77 128,159 2.29 1999 16.18 16.50 162,100 2.29 GROWTH AND INCOME FUND (A) Trust Shares 2003 $12.21 (10.58)% $ 598,862 0.99% 2002 13.80 (7.80) 792,557 0.99 2001 15.05 0.11 867,664 0.99 2000 15.53 4.11 885,109 1.01 1999(1) 16.09 14.24 634,279 1.14 For the year ended November 30: 1998 15.10 13.64 577,042 1.03 Investor Shares 2003 $12.31 (10.74)% $ 36,305 1.18% 2002 13.91 (7.97) 36,789 1.18 2001 15.17 (0.07) 40,174 1.18 2000 15.65 3.92 42,666 1.18 1999(1) 16.21 14.31 36,958 1.08 For the year ended November 30: 1998 15.21 13.69 34,434 1.03 Flex Shares 2003 $12.08 (11.41)% $ 74,261 1.93% 2002 13.66 (8.69) 94,671 1.93 2001 14.96 (0.77) 78,376 1.93 2000 15.49 3.11 62,462 1.93 1999(1) 16.10 13.85 35,163 1.83 For the year ended November 30: 1998 15.14 12.78 25,656 1.78
RATIO OF RATIO OF NET INVESTMENT RATIO OF EXPENSES TO INCOME (LOSS) TO NET INVESTMENT AVERAGE NET ASSETS AVERAGE NET ASSETS PORTFOLIO INCOME (LOSS) TO (EXCLUDING WAIVERS (EXCLUDING WAIVERS TURNOVER AVERAGE NET ASSETS AND REIMBURSEMENTS) AND REIMBURSEMENTS) RATE ------------------ ------------------- ------------------- --------- BALANCED FUND Trust Shares 2003 1.74% 1.05% 1.71% 102% 2002 1.78 1.05 1.75 95 2001 2.24 1.05 2.20 99 2000 2.39 1.07 2.29 182 1999 2.19 1.06 2.10 179 Investor Shares 2003 1.43% 1.55% 1.21% 102% 2002 1.46 1.55 1.24 95 2001 1.93 1.54 1.71 99 2000 2.07 1.51 1.83 182 1999 1.89 1.43 1.73 179 Flex Shares 2003 0.67% 2.18% 0.58% 102% 2002 0.71 2.16 0.64 95 2001 1.18 2.15 1.10 99 2000 1.33 2.18 1.18 182 1999 1.13 2.15 1.01 179 CAPITAL APPRECIATION FUND Trust Shares 2003(2) (0.32)% 1.24% (0.34)% 69% 2002 (0.54) 1.24 (0.56) 75 2001 (0.29) 1.24 (0.32) 75 2000 0.10 1.26 0.01 129 1999 0.29 1.26 0.20 147 Investor Shares 2003(2) (0.98)% 2.00% (1.10)% 69% 2002 (1.20) 1.99 (1.31) 75 2001 (0.94) 1.98 (1.06) 75 2000 (0.55) 1.98 (0.71) 129 1999 (0.30) 1.96 (0.44) 147 Flex Shares 2003(2) (1.45)% 2.45% (1.55)% 69% 2002 (1.67) 2.39 (1.71) 75 2001 (1.41) 2.39 (1.47) 75 2000 (1.03) 2.39 (1.13) 129 1999 (0.86) 2.38 (0.95) 147 GROWTH AND INCOME FUND (A) Trust Shares 2003 1.05% 0.99% 1.05% 52% 2002 0.63 0.99 0.63 68 2001 0.49 0.99 0.49 73 2000 0.76 1.01 0.76 53 1999(1) 0.49 1.43 0.20 31 For the year ended November 30: 1998 0.63 1.21 0.45 71 Investor Shares 2003 0.88% 1.38% 0.68% 52% 2002 0.44 1.36 0.26 68 2001 0.30 1.35 0.13 73 2000 0.58 1.31 0.45 53 1999(1) 0.54 1.17 0.45 31 For the year ended November 30: 1998 0.63 1.18 0.48 71 Flex Shares 2003 0.11% 2.20% (0.16)% 52% 2002 (0.29) 2.16 (0.52) 68 2001 (0.45) 2.14 (0.66) 73 2000 (0.14) 2.18 (0.39) 53 1999(1) (0.21) 1.97 (0.35) 31 For the year ended November 30: 1998 (0.13) 2.03 (0.38) 71
(A) On May 24, 1999, the CrestFund Value Fund exchanged all of its assets and certain liabilities for shares of the Growth and Income Fund. The CrestFund Value Fund is the accounting survivor in this transaction, and as a result, its basis of accounting for assets and liabilities and its operating results for the periods prior to May 24, 1999 have been carried forward in these financial highlights. Amounts designated as "--" are either $0 or have been rounded to $0. THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS. 97
FINANCIAL HIGHLIGHTS - ------------------------------------------------------------------------------------------------------------------------------------ STI CLASSIC EQUITY FUNDS FOR THE YEARS ENDED MAY 31, (UNLESS OTHERWISE INDICATED) FOR A SHARE OUTSTANDING THROUGHOUT THE PERIODS NET ASSET NET REALIZED AND VALUE, NET UNREALIZED GAINS TOTAL BEGINNING INVESTMENT (LOSSES) FROM OF PERIOD INCOME (LOSS) ON INVESTMENTS OPERATIONS --------- ------------- ---------------- ---------- INFORMATION AND TECHNOLOGY FUND Trust Shares 2003(1) $ 8.06 $(0.04) $(1.95) $(1.99) 2002 13.34 0.01 (5.29) (5.28) 2001 15.87 (0.08) (2.45) (2.53) 2000(2) 10.00 (0.04) 5.91 5.87 Flex Shares 2003(1) $ 7.86 $(0.09) $(1.91) $(2.00) 2002 13.15 (0.14) (5.15) (5.29) 2001 15.81 (0.22) (2.44) (2.66) 2000(3) 18.20 (0.07) (2.32) (2.39) INTERNATIONAL EQUITY FUND Trust Shares 2003 $ 9.31 $ 0.07 $(1.32) $(1.25) 2002 10.19 0.19 (1.07) (0.88) 2001 12.56 -- (1.22) (1.22) 2000 12.97 (0.10) 1.42 1.32 1999 15.00 -- (1.14) (1.14) Investor Shares 2003 $ 9.21 $ 0.04 $(1.30) $(1.26) 2002 10.11 0.14 (1.04) (0.90) 2001 12.47 (0.02) (1.23) (1.25) 2000 12.89 (0.11) 1.37 1.26 1999 14.92 (0.09) (1.10) (1.19) Flex Shares 2003 $8.75 $(0.01) $(1.24) $(1.25) 2002 9.68 0.04 (0.97) (0.93) 2001 12.06 (0.16) (1.11) (1.27) 2000 12.58 (0.32) 1.46 1.14 1999 14.68 (0.29) (0.97) (1.26) INTERNATIONAL EQUITY INDEX FUND Trust Shares 2003 (1) $ 9.76 $ 0.10 $(1.43) $(1.33) 2002 11.18 0.04 (1.43) (1.39) 2001 13.97 0.06 (2.69) (2.63) 2000 11.82 0.16 2.13 2.29 1999 13.31 0.09 0.85 0.94 Investor Shares 2003 (1) $ 9.64 $ 0.10 $(1.45) $(1.35) 2002 11.05 (0.02) (1.38) (1.40) 2001 13.80 (0.01) (2.65) (2.66) 2000 11.70 (0.11) 2.32 2.21 1999 13.20 (0.11) 0.98 0.87 Flex Shares 2003 (1) $ 9.48 $ 0.01 $(1.39) $(1.38) 2002 10.93 (0.12) (1.33) (1.45) 2001 13.74 (0.06) (2.66) (2.72) 2000 11.73 0.08 2.04 2.12 1999 13.17 (0.15) 0.94 0.79 LIFE VISION AGGRESSIVE GROWTH FUND (A) (B) (C) Trust Shares 2003 $ 9.57 $ 0.03 $(1.02) $(0.99) 2002 10.31 0.02 (0.74) (0.72) 2001 11.61 0.11 0.23 0.34 2000 11.31 0.05 0.74 0.79 1999(4) 11.32 0.02 1.13 1.15 For the year ended November 30: 1998 10.65 0.03 0.67 0.70 B Shares 2003(5) $ 7.23 $(0.01) $ 1.31 $ 1.30 LIFE VISION CONSERVATIVE FUND (B) (C) B Shares 2003(5) $10.00 $ 0.01 $ 0.42 $ 0.43
DIVIDENDS TOTAL FROM NET DISTRIBUTIONS DIVIDENDS INVESTMENT FROM REALIZED AND INCOME CAPITAL GAINS DISTRIBUTIONS ---------- ------------- ------------- INFORMATION AND TECHNOLOGY FUND Trust Shares 2003(1) $ -- $ -- $ -- 2002 -- -- -- 2001 -- -- -- 2000(2) -- -- -- Flex Shares 2003(1) $ -- $ -- $ -- 2002 -- -- -- 2001 -- -- -- 2000(3) -- -- -- INTERNATIONAL EQUITY FUND Trust Shares 2003 $(0.06) $ -- $(0.06) 2002 -- -- -- 2001 (0.04) (1.11) (1.15) 2000 (0.07) (1.66) (1.73) 1999 (0.05) (0.84) (0.89) Investor Shares 2003 $(0.03) $ -- $(0.03) 2002 -- -- -- 2001 -- (1.11) (1.11) 2000 (0.02) (1.66) (1.68) 1999 -- (0.84) (0.84) Flex Shares 2003 $ -- $ -- $ -- 2002 -- -- -- 2001 -- (1.11) (1.11) 2000 -- (1.66) (1.66) 1999 -- (0.84) (0.84) INTERNATIONAL EQUITY INDEX FUND Trust Shares 2003 (1) $(0.04) $ -- $(0.04) 2002 (0.03) -- (0.03) 2001 (0.07) (0.09) (0.16) 2000 (0.03) (0.11) (0.14) 1999 (0.24) (2.19) (2.43) Investor Shares 2003 (1) $(0.01) $ -- $(0.01) 2002 (0.01) -- (0.01) 2001 -- (0.09) (0.09) 2000 -- (0.11) (0.11) 1999 (0.18) (2.19) (2.37) Flex Shares 2003 (1) $ -- $ -- $ -- 2002 -- -- -- 2001 -- (0.09) (0.09) 2000 -- (0.11) (0.11) 1999 (0.04) (2.19) (2.23) LIFE VISION AGGRESSIVE GROWTH FUND (A) (B) (C) Trust Shares 2003 $(0.03) $ -- $(0.03) 2002 (0.02) -- (0.02) 2001 (0.12) (1.52) (1.64) 2000 (0.05) (0.44) (0.49) 1999(4) (0.01) (1.15) (1.16) For the year ended November 30: 1998 (0.03) -- (0.03) B Shares 2003(5) $ --* $ -- $ --* LIFE VISION CONSERVATIVE FUND (B) (C) B Shares 2003(5) $ -- $ -- $ -- + Returns are for the period indicated and have not been annualized. Total return figures do not include 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. * Amount represents less than $0.01 per share. (1) Per share data calculated using average shares outstanding method. (2) Trust Shares were offered beginning on September 30, 1999. All ratios for the period have been annualized. (3) Flex Shares were offered beginning on January 24, 2000. All ratios for the period have been annualized. (4) For the six month period ended May 31, 1999. All ratios for the period have been annualized. (5) B Shares were offered beginning on March 11, 2003. All ratios for the period have been annualized. 98
- ------------------------------------------------------------------------------------------------------------------------------------ NET ASSET NET ASSETS, RATIO OF VALUE, END TOTAL END OF NET EXPENSES TO OF PERIOD RETURN+ PERIOD (000) AVERAGE NET ASSETS ---------- ------- ------------ ------------------ INFORMATION AND TECHNOLOGY FUND Trust Shares 2003(1) $ 6.07 (24.69)% $ 11,789 1.25% 2002 8.06 (39.58) 32,068 1.19 2001 13.34 (15.94) 87,045 1.20 2000(2) 15.87 58.70 106,425 1.20 Flex Shares 2003(1) $ 5.86 (25.45)% $ 6,485 2.25% 2002 7.86 (40.23) 10,851 2.25 2001 13.15 (16.82) 22,104 2.25 2000(3) 15.81 (13.13) 20,201 2.25 INTERNATIONAL EQUITY FUND Trust Shares 2003 $ 8.00 (13.40)% $191,041 1.46% 2002 9.31 (8.64) 252,991 1.48 2001 10.19 (10.79) 208,120 1.45 2000 12.56 10.58 299,100 1.48 1999 12.97 (7.43) 573,255 1.47 Investor Shares 2003 $ 7.92 (13.70)% $ 6,408 1.83% 2002 9.21 (8.90) 5,272 1.83 2001 10.11 (11.13) 7,517 1.79 2000 12.47 10.15 10,462 1.83 1999 12.89 (7.82) 14,145 1.83 Flex Shares 2003 $ 7.50 (14.29)% $ 5,678 2.53% 2002 8.75 (9.61) 6,567 2.53 2001 9.68 (11.71) 7,765 2.48 2000 12.06 9.38 10,891 2.53 1999 12.58 (8.48) 17,103 2.53 INTERNATIONAL EQUITY INDEX FUND Trust Shares 2003 (1) $ 8.39 (13.63)% $248,770 1.03% 2002 9.76 (12.43) 287,944 1.04 2001 11.18 (18.90) 236,862 1.06 2000 13.97 19.36 340,853 1.07 1999 11.82 7.87 74,616 1.07 Investor Shares 2003 (1) $ 8.28 (14.03)% $ 9,877 1.49% 2002 9.64 (12.65) 3,222 1.49 2001 11.05 (19.31) 3,451 1.46 2000 13.80 18.86 4,563 1.47 1999 11.70 7.33 4,909 1.47 Flex Shares 2003 (1) $ 8.10 (14.56)% $ 3,093 2.14% 2002 9.48 (13.27) 3,505 2.14 2001 10.93 (19.84) 4,731 2.10 2000 13.74 18.04 5,853 2.12 1999 11.73 6.68 1,465 2.12 LIFE VISION AGGRESSIVE GROWTH FUND (A) (B) (C) Trust Shares 2003 $ 8.55 (10.36)% $ 28,681 0.25% 2002 9.57 (6.96) 34,398 0.25 2001 10.31 3.07 23,936 0.25 2000 11.61 7.25 18,412 0.25 1999(4) 11.31 10.99 18,699 0.27 For the year ended November 30: 1998 11.32 6.53 16,230 0.25 B Shares 2003(5) $ 8.53 18.03% $ 1,052 0.89% LIFE VISION CONSERVATIVE FUND (B) (C) B Shares 2003(5) $10.43 4.30% $ 800 0.92%
RATIO OF RATIO OF NET INVESTMENT RATIO OF EXPENSES TO INCOME (LOSS) TO NET INVESTMENT AVERAGE NET ASSETS AVERAGE NET ASSETS PORTFOLIO INCOME (LOSS) TO (EXCLUDING WAIVERS (EXCLUDING WAIVERS TURNOVER AVERAGE NET ASSETS AND REIMBURSEMENTS) AND REIMBURSEMENTS) RATE ------------------ ------------------- ------------------- --------- INFORMATION AND TECHNOLOGY FUND Trust Shares 2003(1) (0.72)% 1.25% (0.72)% 1,259% 2002 (0.92) 1.19 (0.92) 1,102 2001 (0.45) 1.21 (0.46) 750 2000(2) (0.54) 1.34 (0.68) 250 Flex Shares 2003(1) (1.68)% 3.00% (2.43)% 1,259% 2002 (1.99) 2.57 (2.31) 1,102 2001 (1.50) 2.45 (1.70) 750 2000(3) (1.65) 2.40 (1.80) 250 INTERNATIONAL EQUITY FUND Trust Shares 2003 0.83% 1.46% 0.83% 89% 2002 0.48 1.48 0.48 102 2001 0.50 1.45 0.50 68 2000 0.59 1.48 0.59 179 1999 0.68 1.52 0.63 161 Investor Shares 2003 0.59% 2.22% 0.20% 89% 2002 (0.21) 2.08 (0.46) 102 2001 0.18 1.97 -- 68 2000 0.33 1.95 0.21 179 1999 0.30 1.93 0.20 161 Flex Shares 2003 (0.17)% 3.03% (0.67)% 89% 2002 (0.73) 2.93 (1.13) 102 2001 (0.51) 2.57 (0.60) 68 2000 (0.38) 2.74 (0.59) 179 1999 (0.40) 2.82 (0.69) 161 INTERNATIONAL EQUITY INDEX FUND Trust Shares 2003 (1) 1.26% 1.12% 1.17% 25% 2002 0.63 1.12 0.55 35 2001 0.40 1.09 0.37 13 2000 0.83 1.18 0.72 9 1999 0.69 1.17 0.59 32 Investor Shares 2003 (1) 1.33% 1.87% 0.95% 25% 2002 (0.12) 1.90 (0.53) 35 2001 0.05 1.83 (0.32) 13 2000 0.07 1.79 (0.25) 9 1999 0.25 1.71 0.01 32 Flex Shares 2003 (1) 0.18% 2.82% (0.50)% 25% 2002 (0.68) 2.62 (1.16) 35 2001 (0.61) 2.15 (0.66) 13 2000 (0.36) 2.61 (0.85) 9 1999 (0.30) 2.92 (1.10) 32 LIFE VISION AGGRESSIVE GROWTH FUND (A) (B) (C) Trust Shares 2003 0.33% 0.40% 0.18% 50% 2002 0.17 0.41 0.01 101 2001 1.05 0.43 0.87 202 2000 0.48 0.44 0.29 183 1999(4) 0.28 0.63 (0.08) 33 For the year ended November 30: 1998 0.23 0.66 (0.18) 75 B Shares 2003(5) (0.86)% 1.36% (1.33)% 50% LIFE VISION CONSERVATIVE FUND (B) (C) B Shares 2003(5) 0.85% 1.39% 0.38% 160%
(A) On May 24, 1999, the CrestFund Life Vision Maximum Growth Portfolio exchanged all of its assets and certain liabilities for shares of the Life Vision Aggressive Growth Fund. The CrestFund Life Vision Maximum Growth Portfolio is the accounting survivor in this transaction, and as a result, its basis of accounting for assets and liabilities and its operating results for the periods prior to May 24, 1999 have been carried forward in these financial highlights. (B) The Life Vision Funds and its shareholders indirectly bear a pro rata share of the expenses of the underlying STIClassic Funds. The expense ratios do not include such expenses. (C) Recognition of net investment income by the Life Vision Funds is affected by the timing of the declaration of dividends by the STI Classic Funds in which the Life Vision Funds invest. Amounts designated as "--" are either $0 or have been rounded to $0. THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS. 99
FINANCIAL HIGHLIGHTS - ------------------------------------------------------------------------------------------------------------------------------------ STI CLASSIC EQUITY FUNDS FOR THE YEARS ENDED MAY 31, (UNLESS OTHERWISE INDICATED) FOR A SHARE OUTSTANDING THROUGHOUT THE PERIODS NET ASSET NET REALIZED AND VALUE, NET UNREALIZED GAINS TOTAL BEGINNING INVESTMENT (LOSSES) FROM OF PERIOD INCOME (LOSS) ON INVESTMENTS OPERATIONS --------- ------------- ---------------- ---------- LIFE VISION GROWTH AND INCOME FUND (A) (B) (C) Trust Shares 2003 $ 9.98 $ 0.13 $(0.65) $(0.52) 2002 10.42 0.12 (0.43) (0.31) 2001 10.50 0.24 0.40 0.64 2000 10.33 0.07 0.52 0.59 1999(1) 11.06 0.08 0.69 0.77 For the year ended November 30: 1998 10.51 0.18 0.56 0.74 B Shares 2003(2) $ 8.10 $ 0.02 $ 1.24 $ 1.26 LIFE VISION MODERATE GROWTH FUND (A) (B) (C) Trust Shares 2003 $ 9.40 $ 0.16 $(0.38) $(0.22) 2002 9.73 0.17 (0.32) (0.15) 2001 10.61 0.32 0.20 0.52 2000 10.80 0.33 0.13 0.46 1999(1) 11.01 0.11 0.56 0.67 For the year ended November 30: 1998 10.46 0.24 0.58 0.82 B Shares 2003(2) $ 8.05 $ 0.03 $ 0.95 $ 0.98 MID-CAP EQUITY FUND Trust Shares 2003(6) $ 9.79 $(0.03) $(1.02)* $(1.05)* 2002 10.95 0.01 (1.17) (1.16) 2001 14.10 (0.03) (0.61) (0.64) 2000 12.68 (0.04) 2.32 2.28 1999 13.79 0.01 0.07 0.08 Investor Shares 2003(6) $ 9.47 $(0.05) $(1.00) $(1.05) 2002 10.64 (0.03) (1.14) (1.17) 2001 13.82 (0.05) (0.62) (0.67) 2000 12.50 (0.19) 2.37 2.18 1999 13.67 (0.06) 0.08 0.02 Flex Shares 2003(6) $ 8.97 $(0.10) $(0.95) $(1.05) 2002 10.14 0.02 (1.19) (1.17) 2001 13.35 (0.07) (0.63) (0.70) 2000 12.17 (0.22) 2.26 2.04 1999 13.42 (0.14) 0.08 (0.06) MID CAP VALUE EQUITY FUND Trust Shares 2003 $10.95 $ 0.05 $(2.16) $(2.11) 2002(3) 10.00 0.02 0.94 0.96 Flex Shares 2003 $10.92 $ 0.01 $(2.16) $(2.15) 2002(3) 10.00 (0.01) 0.93 0.92 SMALL CAP GROWTH STOCK FUND Trust Shares 2003(6) $17.28 $(0.12) $(1.72) $(1.84) 2002 18.37 -- (1.02) (1.02) 2001 18.30 (0.18) 1.71 1.53 2000 14.55 (0.08) 4.02 3.94 1999(4) 10.00 (0.05) 4.62 4.57 Investor Shares 2003(6) $17.12 $(0.17) $(1.70) $(1.87) 2002 18.26 (0.17) (0.90) (1.07) 2001 18.27 (0.59) 2.04 1.45 2000(5) 16.46 (0.07) 1.88 1.81 Flex Shares 2003(6) $16.62 $(0.26) $(1.66) $(1.92) 2002 17.85 (0.02) (1.14) (1.16) 2001 18.00 (0.25) 1.56 1.31 2000 14.46 (0.04) 3.77 3.73 1999(4) 10.00 (0.19) 4.67 4.48
DIVIDENDS TOTAL FROM NET DISTRIBUTIONS DIVIDENDS INVESTMENT FROM REALIZED AND INCOME CAPITAL GAINS DISTRIBUTIONS ---------- ------------- ------------- LIFE VISION GROWTH AND INCOME FUND (A) (B) (C) Trust Shares 2003 $(0.13) $ -- $(0.13) 2002 (0.13) -- (0.13) 2001 (0.25) (0.47) (0.72) 2000 (0.17) (0.25) (0.42) 1999(1) (0.06) (1.44) (1.50) For the year ended November 30: 1998 (0.18) (0.01) (0.19) B Shares 2003(2) $(0.02) $ -- $(0.02) LIFE VISION MODERATE GROWTH FUND (A) (B) (C) Trust Shares 2003 $(0.16) $ -- $(0.16) 2002 (0.18) -- (0.18) 2001 (0.34) (1.06) (1.40) 2000 (0.21) (0.44) (0.65) 1999(1) (0.09) (0.79) (0.88) For the year ended November 30: 1998 (0.24) (0.03) (0.27) B Shares 2003(2) $(0.03) $ -- $(0.03) MID-CAP EQUITY FUND Trust Shares 2003(6) $ -- $ -- $ -- 2002 -- -- -- 2001 -- (2.51) (2.51) 2000 -- (0.86) (0.86) 1999 -- (1.19) (1.19) Investor Shares 2003(6) $ -- $ -- $ -- 2002 -- -- -- 2001 -- (2.51) (2.51) 2000 -- (0.86) (0.86) 1999 -- (1.19) (1.19) Flex Shares 2003(6) $ -- $ -- $ -- 2002 -- -- -- 2001 -- (2.51) (2.51) 2000 -- (0.86) (0.86) 1999 -- (1.19) (1.19) MID CAP VALUE EQUITY FUND Trust Shares 2003 $(0.04) $(0.18) $(0.22) 2002(3) (0.01) -- (0.01) Flex Shares 2003 $(0.01) $(0.18) $(0.19) 2002(3) -- -- -- SMALL CAP GROWTH STOCK FUND Trust Shares 2003(6) $ -- $(0.25) $(0.25) 2002 -- (0.07) (0.07) 2001 -- (1.46) (1.46) 2000 -- (0.19) (0.19) 1999(4) -- (0.02) (0.02) Investor Shares 2003(6) $ -- $(0.25) $(0.25) 2002 -- (0.07) (0.07) 2001 -- (1.46) (1.46) 2000(5) -- -- -- Flex Shares 2003(6) $ -- $(0.25) $(0.25) 2002 -- (0.07) (0.07) 2001 -- (1.46) (1.46) 2000 -- (0.19) (0.19) 1999(4) -- (0.02) (0.02) + Returns are for the period indicated and have not been annualized. Total return figures do not include 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. * Includes redemption fees of $0.01. (1) For the six month period ended May 31, 1999. All ratios for the period have been annualized. (2) B Shares were offered beginning on March 11, 2003. All ratios for the period have been annualized. (3) Commenced operations on November 30, 2001. All ratios for the period have been annualized. (4) Shares were offered beginning on October 8, 1998. All ratios for the period have been annualized. (5) Investor Shares were offered beginning on December 12, 1999. All ratios for the period have been annualized. (6) Per share data calculated using average shares outstanding method. 100
- ------------------------------------------------------------------------------------------------------------------------------------ NET ASSET NET ASSETS, RATIO OF VALUE, END TOTAL END OF NET EXPENSES TO OF PERIOD RETURN+ PERIOD (000) AVERAGE NET ASSETS ---------- ------- ------------ ------------------ LIFE VISION GROWTH AND INCOME FUND (A) (B) (C) Trust Shares 2003 $ 9.33 (5.16)% $ 59,449 0.25% 2002 9.98 (2.97) 77,395 0.25 2001 10.42 6.31 37,550 0.25 2000 10.50 5.81 30,473 0.25 1999(1) 10.33 7.75 21,950 0.27 For the year ended November 30: 1998 11.06 7.12 19,042 0.25 B Shares 2003(2) $ 9.34 15.57% $ 2,017 0.90% LIFE VISION MODERATE GROWTH FUND (A) (B) (C) Trust Shares 2003 $ 9.02 (2.21)% $ 93,722 0.25% 2002 9.40 (1.52) 88,592 0.25 2001 9.73 5.28 73,429 0.25 2000 10.61 4.46 69,622 0.25 1999(1) 10.80 6.35 88,188 0.27 For the year ended November 30: 1998 11.01 7.90 93,211 0.25 B Shares 2003(2) $ 9.00 12.22% $ 2,691 0.91% MID-CAP EQUITY FUND Trust Shares 2003(6) $ 8.74 (10.73)% $118,092 1.22% 2002 9.79 (10.59) 171,813 1.22 2001 10.95 (6.92) 156,111 1.21 2000 14.10 19.10 206,545 1.17 1999 12.68 1.61 254,055 1.17 Investor Shares 2003(6) $ 8.42 (11.09)% $ 12,137 1.68% 2002 9.47 (11.00) 10,766 1.68 2001 10.64 (7.34) 12,316 1.66 2000 13.82 18.55 14,513 1.62 1999 12.50 1.17 19,230 1.62 Flex Shares 2003(6) $ 7.92 (11.71)% $ 12,013 2.28% 2002 8.97 (11.54) 13,937 2.28 2001 10.14 (7.88) 12,910 2.26 2000 13.35 17.87 14,588 2.22 1999 12.17 0.56 15,804 2.22 MID CAP VALUE EQUITY FUND Trust Shares 2003 $ 8.62 (19.05)% $ 99,854 1.25% 2002(3) 10.95 9.65 174,859 1.27 Flex Shares 2003 $ 8.58 (19.58)% $ 5,744 1.90% 2002(3) 10.92 9.24 5,465 1.89 SMALL CAP GROWTH STOCK FUND Trust Shares 2003(6) $15.19 (10.50)% $567,714 1.24% 2002 17.28 (5.55) 593,211 1.25 2001 18.37 8.33 508,857 1.24 2000 18.30 27.24 431,478 1.20 1999(4) 14.55 45.70 152,290 1.20 Investor Shares 2003(6) $15.00 (10.77)% $ 21,887 1.61% 2002 17.12 (5.86) 24,978 1.61 2001 18.26 7.89 28,933 1.60 2000(5) 18.27 11.00 39,865 1.55 Flex Shares 2003(6) $14.45 (11.40)% $ 25,601 2.31% 2002 16.62 (6.50) 29,457 2.31 2001 17.85 7.19 26,941 2.29 2000 18.00 25.95 23,228 2.25 1999(4) 14.46 44.78 6,158 2.25
RATIO OF NET INVESTMENT RATIO OF EXPENSES TO INCOME (LOSS) TO NET INVESTMENT AVERAGE NET ASSETS AVERAGE NET ASSETS PORTFOLIO INCOME (LOSS) TO (EXCLUDING WAIVERS (EXCLUDING WAIVERS TURNOVER AVERAGE NET ASSETS AND REIMBURSEMENTS) AND REIMBURSEMENTS) RATE ------------------ ------------------- ------------------- --------- LIFE VISION GROWTH AND INCOME FUND (A) (B) (C) Trust Shares 2003 1.46% 0.37% 1.34% 139% 2002 1.25 0.39 1.11 166 2001 2.41 0.39 2.27 286 2000 1.77 0.42 1.60 189 1999(1) 1.38 0.60 1.05 40 For the year ended November 30: 1998 1.68 0.59 1.34 57 B Shares 2003(2) 0.39% 1.34% (0.05)% 139% LIFE VISION MODERATE GROWTH FUND (A) (B) (C) Trust Shares 2003 1.87% 0.36% 1.76% 101% 2002 1.81 0.36 1.70 202 2001 3.04 0.37 2.92 247 2000 2.19 0.37 2.07 151 1999(1) 1.90 0.42 1.75 48 For the year ended November 30: 1998 2.21 0.42 2.04 52 B Shares 2003(2) 0.93% 1.34% 0.50% 101% MID-CAP EQUITY FUND Trust Shares 2003(6) (0.31)% 1.25% (0.34)% 144% 2002 (0.18) 1.24 (0.20) 87 2001 (0.24) 1.25 (0.28) 100 2000 -- 1.25 (0.08) 131 1999 (0.47) 1.28 (0.58) 76 Investor Shares 2003(6) (0.68)% 1.92% (0.92)% 144% 2002 (0.63) 1.89 (0.84) 87 2001 (0.69) 1.86 (0.89) 100 2000 (0.43) 1.81 (0.62) 131 1999 (0.90) 1.76 (1.04) 76 Flex Shares 2003(6) (1.33)% 2.60% (1.65)% 144% 2002 (1.23) 2.50 (1.45) 87 2001 (1.29) 2.46 (1.49) 100 2000 (1.05) 2.44 (1.27) 131 1999 (1.52) 2.48 (1.78) 76 MID CAP VALUE EQUITY FUND Trust Shares 2003 0.63% 1.35% 0.53% 71% 2002(3) 0.29 1.37 0.19 30 Flex Shares 2003 0.03% 2.85% (0.92)% 71% 2002(3) (0.31) 2.72 (1.14) 30 SMALL CAP GROWTH STOCK FUND Trust Shares 2003(6) (0.87)% 1.24% (0.87)% 96% 2002 (1.01) 1.25 (1.01) 100 2001 (0.95) 1.25 (0.96) 112 2000 (0.86) 1.23 (0.89) 110 1999(4) (0.48) 1.49 (0.77) 75 Investor Shares 2003(6) (1.23)% 1.93% (1.55)% 96% 2002 (1.37) 1.88 (1.64) 100 2001 (1.33) 1.87 (1.60) 112 2000(5) (1.26) 1.79 (1.50) 110 Flex Shares 2003(6) (1.93)% 2.46% (2.08)% 96% 2002 (2.07) 2.41 (2.17) 100 2001 (2.01) 2.39 (2.11) 112 2000 (1.92) 2.42 (2.09) 110 1999(4) (1.50) 3.19 (2.44) 75
(A) On May 24, 1999, the CrestFund Life Vision Growth and Income and CrestFund Life Vision Balanced Portfolios exchanged all of their assets and certain liabilities for shares of the Life Vision Growth and Income and Life Vision Moderate Growth Funds, respectively. The CrestFund Life Vision Growth and Income, and CrestFund Life Vision Balanced Portfolios are the accounting survivors in these transactions, and as a result, their basis of accounting for assets and liabilities and their operating results for the periods prior to May 24, 1999 have been carried forward in these financial highlights. (B) The Life Vision Funds and its shareholders indirectly bear a pro rata share of the expenses of the underlying STIClassic Funds. The expense ratios do not include such expenses. (C) Recognition of net investment income by the Life Vision Funds is affected by the timing of the declaration of dividends by the STI Classic Funds in which the Life Vision Funds invest. Amounts designated as "--" are either $0 or have been rounded to $0. THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS. 101
FINANCIAL HIGHLIGHTS - ------------------------------------------------------------------------------------------------------------------------------------ STI CLASSIC EQUITY FUNDS FOR THE YEARS ENDED MAY 31, (UNLESS OTHERWISE INDICATED) FOR A SHARE OUTSTANDING THROUGHOUT THE PERIODS NET ASSET NET REALIZED AND VALUE, NET UNREALIZED GAINS TOTAL BEGINNING INVESTMENT (LOSSES) FROM OF PERIOD INCOME (LOSS) ON INVESTMENTS OPERATIONS --------- ------------- ---------------- ---------- SMALL CAP VALUE EQUITY FUND Trust Shares 2003 $14.54 $ 0.08 $(0.82) $(0.74) 2002 12.21 0.08 2.35 2.43 2001 9.13 0.17 3.07 3.24 2000 9.70 0.13 (0.59) (0.46) 1999 12.88 0.13 (2.57) (2.44) Flex Shares 2003 $14.43 $(0.04) $(0.84) $(0.88) 2002 12.15 -- 2.29 2.29 2001 9.10 0.07 3.04 3.11 2000 9.65 -- (0.54) (0.54) 1999 12.80 0.01 (2.53) (2.52) TAX SENSITIVE GROWTH STOCK FUND Trust Shares 2003(5) $23.25 $ -- $(2.47) $(2.47) 2002 26.74 (0.02) (3.47) (3.49) 2001 33.10 (0.03) (6.33) (6.36) 2000 29.96 0.02 3.12 3.14 1999(1) 25.61 0.02 4.34 4.36 Flex Shares 2003(5) $22.45 $(0.20) $(2.40) $(2.60) 2002 26.10 (0.41) (3.24) (3.65) 2001 32.65 (0.36) (6.19) (6.55) 2000 29.85 (0.16) 2.96 2.80 1999(2) 25.52 (0.04) 4.37 4.33 VALUE INCOME STOCK FUND Trust Shares 2003 $11.05 $ 0.15 $(1.33) $(1.18) 2002 11.61 0.12 (0.56) (0.44) 2001 10.38 0.19 1.24 1.43 2000 12.85 0.23 (1.49) (1.26) 1999 13.90 0.24 1.02 1.26 Investor Shares 2003 $11.01 $ 0.12 $(1.32) $(1.20) 2002 11.58 0.08 (0.56) (0.48) 2001 10.35 0.14 1.25 1.39 2000 12.81 0.19 (1.48) (1.29) 1999 13.87 0.19 1.02 1.21 Flex Shares 2003 $10.90 $ 0.05 $(1.31) $(1.26) 2002 11.46 -- (0.55) (0.55) 2001 10.24 0.04 1.26 1.30 2000 12.68 0.08 (1.44) (1.36) 1999 13.75 0.10 1.01 1.11 VANTAGE FUND Trust Shares 2003 $ 9.65 $(0.12) $(1.08) $(1.20) 2002(3) 10.00 (0.03) (0.32) (0.35) Flex Shares 2003 $ 9.64 $(0.11) $(1.14) $(1.25) 2002(4) 10.49 (0.02) (0.83) (0.85)
DIVIDENDS TOTAL FROM NET DISTRIBUTIONS DIVIDENDS INVESTMENT FROM REALIZED AND INCOME CAPITAL GAINS DISTRIBUTIONS ---------- ------------- ------------- SMALL CAP VALUE EQUITY FUND Trust Shares 2003 $(0.07) $ -- $(0.07) 2002 (0.10) -- (0.10) 2001 (0.16) -- (0.16) 2000 (0.11) -- (0.11) 1999 (0.13) (0.61) (0.74) Flex Shares 2003 $ -- $ -- $ -- 2002 (0.01) -- (0.01) 2001 (0.06) -- (0.06) 2000 (0.01) -- (0.01) 1999 (0.02) (0.61) (0.63) TAX SENSITIVE GROWTH STOCK FUND Trust Shares 2003(5) $ -- $ -- $ -- 2002 -- -- -- 2001 -- -- -- 2000 -- -- -- 1999(1) (0.01) -- (0.01) Flex Shares 2003(5) $ -- $ -- $ -- 2002 -- -- -- 2001 -- -- -- 2000 -- -- -- 1999(2) -- -- -- VALUE INCOME STOCK FUND Trust Shares 2003 $(0.14) $ -- $(0.14) 2002 (0.12) -- (0.12) 2001 (0.20) -- (0.20) 2000 (0.22) (0.99) (1.21) 1999 (0.24) (2.07) (2.31) Investor Shares 2003 $(0.11) $ -- $(0.11) 2002 (0.09) -- (0.09) 2001 (0.16) -- (0.16) 2000 (0.18) (0.99) (1.17) 1999 (0.20) (2.07) (2.27) Flex Shares 2003 $(0.04) $ -- $(0.04) 2002 (0.01) -- (0.01) 2001 (0.08) -- (0.08) 2000 (0.09) (0.99) (1.08) 1999 (0.11) (2.07) (2.18) VANTAGE FUND Trust Shares 2003 $ -- $ -- $ -- 2002(3) -- -- -- Flex Shares 2003 $ -- $ -- $ -- 2002(4) -- -- -- + Returns are for the period indicated and have not been annualized. Total return figures do not include 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. * Includes dividends on securities sold short. (1) Trust Shares were offered beginning on December 11, 1998. All ratios for the period have been annualized. (2) Flex Shares were offered beginning on December 15, 1998. All ratios for the period have been annualized. (3) Trust Shares were offered beginning on November 30, 2001. All ratios for the period have been annualized. (4) Flex Shares were offered beginning on March 11, 2002. All ratios for the period have been annualized. (5) Per share data calculated using average shares outstanding method. Amounts designated as "--" are either $0 or have been rounded to $0. 102
- ------------------------------------------------------------------------------------------------------------------------------------ NET ASSET NET ASSETS, RATIO OF VALUE, END TOTAL END OF NET EXPENSES TO OF PERIOD RETURN+ PERIOD (000) AVERAGE NET ASSETS ---------- ------- ------------ ------------------ SMALL CAP VALUE EQUITY FUND Trust Shares 2003 $13.73 (5.09)% $ 518,468 1.24% 2002 14.54 20.06 614,199 1.25 2001 12.21 35.90 401,900 1.25 2000 9.13 (4.72) 212,074 1.22 1999 9.70 (18.72) 301,984 1.22 Flex Shares 2003 $13.55 (6.10)% $ 34,064 2.31% 2002 14.43 18.92 32,708 2.31 2001 12.15 34.30 11,167 2.30 2000 9.10 (5.65) 8,596 2.27 1999 9.65 (19.52) 19,465 2.27 TAX SENSITIVE GROWTH STOCK FUND Trust Shares 2003(5) $20.78 (10.62)% $ 198,429 1.24% 2002 23.25 (13.05) 244,707 1.24 2001 26.74 (19.21) 460,311 1.24 2000 33.10 10.48 710,179 1.20 1999(1) 29.96 17.04 223,543 1.20 Flex Shares 2003(5) $19.85 (11.58)% $ 110,085 2.31% 2002 22.45 (13.98) 167,973 2.31 2001 26.10 (20.06) 233,496 2.30 2000 32.65 9.38 290,595 2.25 1999(2) 29.85 16.97 75,875 2.25 VALUE INCOME STOCK FUND Trust Shares 2003 $ 9.73 (10.54)% $ 681,899 0.89% 2002 11.05 (3.68) 686,014 0.90 2001 11.61 14.09 704,842 0.90 2000 10.38 (10.52) 921,797 0.89 1999 12.85 11.13 1,589,951 0.92 Investor Shares 2003 $ 9.70 (10.85)% $ 65,294 1.28% 2002 11.01 (4.14) 75,697 1.28 2001 11.58 13.63 85,584 1.28 2000 10.35 (10.83) 104,178 1.28 1999 12.81 10.71 194,312 1.28 Flex Shares 2003 $ 9.60 (11.56)% $ 49,007 2.02% 2002 10.90 (4.82) 59,392 2.02 2001 11.46 12.85 65,895 2.01 2000 10.24 (11.50) 84,563 2.02 1999 12.68 9.91 167,000 2.02 VANTAGE FUND Trust Shares 2003 $ 8.45 (12.44)% $ 4,195 2.15%* 2002(3) 9.65 (3.50) 8,816 2.03* Flex Shares 2003 $ 8.39 (12.97)% $ 899 2.88%* 2002(4) 9.64 (8.10) 860 2.73*
RATIO OF RATIO OF NET INVESTMENT RATIO OF EXPENSES TO INCOME (LOSS) TO NET INVESTMENT AVERAGE NET ASSETS AVERAGE NET ASSETS PORTFOLIO INCOME (LOSS) TO (EXCLUDING WAIVERS (EXCLUDING WAIVERS TURNOVER AVERAGE NET ASSETS AND REIMBURSEMENTS) AND REIMBURSEMENTS) RATE ------------------ ------------------- ------------------- --------- SMALL CAP VALUE EQUITY FUND Trust Shares 2003 0.64% 1.24% 0.64% 29% 2002 0.67 1.25 0.67 29 2001 1.72 1.25 1.72 86 2000 1.31 1.25 1.28 65 1999 1.27 1.27 1.22 63 Flex Shares 2003 (0.40)% 2.50% (0.59)% 29% 2002 (0.38) 2.52 (0.59) 29 2001 0.63 2.66 0.27 86 2000 0.21 2.56 (0.08) 65 1999 0.21 2.55 (0.07) 63 TAX SENSITIVE GROWTH STOCK FUND Trust Shares 2003(5) (0.01)% 1.24% (0.01)% 58% 2002 (0.10) 1.24 (0.10) 69 2001 (0.10) 1.25 (0.11) 103 2000 0.13 1.26 0.07 30 1999(1) 0.21 1.34 0.07 18 Flex Shares 2003(5) (1.07)% 2.40% (1.16)% 58% 2002 (1.16) 2.36 (1.21) 69 2001 (1.15) 2.34 (1.19) 103 2000 (0.91) 2.35 (1.01) 30 1999(2) (0.80) 2.48 (1.03) 18 VALUE INCOME STOCK FUND Trust Shares 2003 1.68% 0.89% 1.68% 46% 2002 1.13 0.90 1.13 60 2001 1.70 0.90 1.70 77 2000 2.02 0.89 2.02 62 1999 1.91 0.92 1.91 69 Investor Shares 2003 1.29% 1.32% 1.25% 46% 2002 0.74 1.31 0.71 60 2001 1.31 1.31 1.28 77 2000 1.64 1.28 1.64 62 1999 1.55 1.28 1.55 69 Flex Shares 2003 0.55% 2.10% 0.47% 46% 2002 -- 2.05 (0.03) 60 2001 0.59 2.05 0.55 77 2000 0.91 2.03 0.90 62 1999 0.81 2.03 0.80 69 VANTAGE FUND Trust Shares 2003 (0.68)% 2.25%* (0.78)% 3,249% 2002(3) (0.78) 2.13* (0.88) 1,063 Flex Shares 2003 (1.22)% 4.53%* (2.87)% 3,249% 2002(4) (1.44) 3.32* (2.03) 1,063
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS. 103 NOTES TO FINANCIAL STATEMENTS - -------------------------------------------------------------------------------- STI CLASSIC EQUITY FUNDS MAY 31, 2003 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 offering 41 funds as of May 31, 2003. The financial statements presented herein are those of the Balanced Fund, the Capital Appreciation Fund, the Growth and Income Fund, the Information and Technology Fund, the International Equity Fund, the International Equity Index Fund, the Life Vision Aggressive Growth Fund, the Life Vision Conservative Fund, the Life Vision Growth and Income Fund, the Life Vision Moderate Growth Fund, the Mid-Cap Equity Fund, the Mid Cap Value Equity Fund, the Small Cap Growth Stock Fund, the Small Cap Value Equity Fund, the Tax Sensitive Growth Stock Fund, the Value Income Stock Fund and the Vantage Fund (each a "Fund" and collectively the "Funds"). The financial statements of the remaining funds are presented separately. The assets of each Fund are segregated, and a shareholder's interest is limited to the Fund in which shares are held. The Funds' prospectus provides a description of the Funds' investment objectives, policies and strategies. 2. Significant Accounting Policies: The following is a summary of significant accounting policies followed by the Trust. USE OF ESTIMATES -- The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amount of assets and liabilities, disclosure of contingent assets and liabilities at the date of the financial statements, and reported amounts of revenues and expenses during the reporting period. Actual amounts could differ from these estimates. SECURITY VALUATION -- Equity securities listed on a securities exchange, market or automated quotation system for which quotations are readily available (except for equity securities traded on NASDAQ), including equity securities traded over the counter, are valued at the last quoted sale price on the primary exchange or market (foreign or domestic) on which they are traded on valuation date (or at approximately 4:00 pm ET if an equity security's primary exchange is normally open at that time), or, if there is no such reported sale on the valuation date, at the most recent quoted bid price. For securities traded on NASDAQ, the NASDAQ Official Closing Price will be used. Investments and investments sold short that are traded on a national securities exchange or national market system are valued at (1) market value based upon the last reported sale as of the last day of the accounting period, or (2) if there are no reported sales, the last bid price for long positions and ask price for short positions. If available, debt securities are priced based upon valuations provided by independent, third-party pricing agents. Such values generally reflect the last reported sales price if the security is actively traded. The third-party pricing agents may also value debt securities at an evaluated bid price by employing methodologies that utilize actual market transactions, broker-supplied valuations, or other methodologies designed to identify the market value for such securities. Debt obligations with remaining maturities of sixty days or less may be valued at their amortized cost, which approximates market value. Securities for which current market quotations are not readily available are valued at their fair value as determined in good faith by, or in accordance with, procedures adopted by the Board of Trustees. The assets of the Life Vision Aggressive Growth Fund, the Life Vision Conservative Fund, the Life Vision Growth and Income Fund and the Life Vision Moderate Growth Fund consist of investments in underlying affiliated investment companies, which are valued at their respective daily net asset values. SECURITY TRANSACTIONS AND INVESTMENT INCOME -- Security transactions are accounted for on the date the security is purchased or sold (trade date). Dividend income is recognized on the ex-dividend date and interest income is recognized on an accrual basis. Costs used in determining net realized gains and losses on the sales of investment securities are those of the specific securities sold adjusted for the accretion and amortization of purchase discounts and premiums during the respective holding period. Purchase discounts and premiums on securities held by the Funds are accreted and amortized to maturity using the 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. 104 - -------------------------------------------------------------------------------- NET ASSET VALUE PER SHARE -- The net asset value per share of each Fund is calculated each business day, by dividing the total value of each Fund's assets, less liabilities, by the number of shares outstanding. The maximum offering price per share for Investor shares of the Balanced, Capital Appreciation, Growth and Income, International Equity, International Equity Index, Mid-Cap Equity, Small Cap Growth Stock, and Value Income Stock Funds is equal to the net asset value per share plus a sales load of 3.75%. Flex Shares of the Funds may be purchased at their net asset value. Shares redeemed within the first year after purchase will be subject to a contingent deferred sales charge ("CDSC") equal to 2.00% for either the net asset value of the shares at the time of purchase or the net asset value of the shares next calculated after the Fund receives the sale request, whichever is less. The CDSC will not apply to shares redeemed after such time. A CDSC is imposed on certain redemptions of the B Shares. The CDSC varies depending on the number of years from the time of payment for the purchase of B Shares until the redemption of such shares. YEARS AFTER CONTINGENT DEFERRED PURCHASE SALES CHARGE ----------- ------------ 0 to 1 Year 5% 1 to 2 Years 4% 2 to 3 Years 4% 3 to 4 Years 3% 4 to 5 Years 2% 5 Years + 0% The Funds may charge a redemption fee up to 2% of redemption proceeds, which will automatically be paid to the Fund. FOREIGN CURRENCY TRANSLATION -- The books and records of the International Equity and the International Equity Index Funds are maintained in U.S. dollars on the following basis: (i) market value of investment securities, assets and liabilities at the current rate of exchange; and (ii) purchases and sales of investment securities, income and expenses at the relevant rates of exchange prevailing on the respective dates of such transactions. The International Equity and the International Equity Index Funds do not isolate that portion of gains and losses on investments in equity securities that is due to changes in the foreign exchange rates from that which is due to changes in market prices of equity securities. The International Equity and the International Equity Index Funds report certain foreign currency related transactions as components of realized and unrealized gains and losses for financial reporting purposes, whereas such components are treated as ordinary income for Federal income tax purposes. TBA PURCHASE COMMITMENTS -- The Balanced Fund may enter into "TBA" (To Be Announced) purchase commitments to purchase securities for a fixed price at a future date beyond customary settlement time. TBA purchase commitments may be considered securities in themselves, and involve a risk of loss if the value of the security to be purchased declines prior to settlement date. Unsettled TBA purchase commitments are valued at the current market value of the underlying securities, generally according to the procedures described under "Security Valuation." ILLIQUID SECURITIES -- Valuations of illiquid securities may differ significantly from the values that would have been used had an active market value for these securities existed. RESTRICTED SECURITIES -- Certain of the Funds' investments are restricted as to resale. The table below shows the number of shares held, the acquisition date, cost, market value, value per share of such securities and percentage of net assets which the securities comprise as of May 31, 2003 in the Small Cap Growth Stock Fund:
MARKET VALUE NUMBER ACQUISITION AS OF VALUE % OF OF SHARES DATE COST 5/31/03 PER SHARE NET ASSETS --------- ----------- ------ --------- --------- ---------- Dot Hill Systems 900,0000 03/04/03 $3,375,000 $9,124,200 $10.14 1.48%
SHORT SALES -- As consistent with the Funds' investment objectives, the Funds may engage in short sales that are either "uncovered" or "against the box." A short sale is "against the box" if at all times during which the short position is open, the Funds own at least an equal amount of the securities or securities convertible into, or exchangeable without further consideration for, securities of the same issue as the securities that are sold short. Uncovered short sales are transactions under which the Funds sell a security they do not own. To complete such a transaction, the Funds must borrow the security to make delivery to the buyer. The Funds then are obligated to replace the security borrowed by purchasing the security at the market price at the time of the replacement. The price at such time may be more or less than the price at which the security was sold by the Funds. Until the security is replaced, the Funds are required to pay the lender amounts equal to any dividends or interest that accrue during the period of 105 NOTES TO FINANCIAL STATEMENTS (continued) - -------------------------------------------------------------------------------- STI CLASSIC EQUITY FUNDS MAY 31, 2003 the loan. To borrow the security, the Funds also may be required to pay a premium, which would increase the cost of the security sold. The proceeds of the short sale will be retained by the broker, to the extent necessary to meet margin requirements, until the short position is closed out. A gain, limited to the price at which the Funds sold the security short, or a loss, unlimited in size, will be recognized upon the determination of a short sale. Until the Funds close their short position or replace the borrowed security, the Funds will: (a) maintain a segregated account containing cash or liquid securities at such a level that (i) the amount deposited in the account plus the amount deposited with the broker as collateral will equal the current value of the security sold short; and (ii) the amount deposited in the segregated account plus the amount deposited with the broker as collateral will not be less than the market value of the security at the time the security was sold short, or (b) otherwise cover the Funds' short positions. EXPENSES -- 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. In addition to the investment advisory and management fees, custodian fees, service fees, administration and transfer agent fees, each Fund is responsible for paying most other operating expenses including organization costs, fees and expenses of outside directors, registration fees, printing of shareholder reports, legal, auditing, insurance and other miscellaneous expenses. In addition to the Funds' direct expenses as described above, Fund shareholders of the Life Vision Funds also bear a proportionate share of the underlying Funds' expenses. DIVIDENDS AND DISTRIBUTIONS TO SHAREHOLDERS -- Distributions to shareholders, which are determined in accordance with Federal tax regulations are recorded on the ex-dividend date. Distributions from net investment income, if any, are declared and paid each calendar quarter by the Equity Funds, except for the International Equity and the International Equity Index Funds. These Funds distribute income annually. Any net realized capital gains on sales of securities are distributed to shareholders at least annually. 3. Agreements and Other Transactions with Affiliates: INVESTMENT ADVISORY AGREEMENT -- The Trust and Trusco Capital Management, Inc. (the "Investment Adviser"), a wholly owned subsidiary of SunTrust Banks, Inc., have entered into advisory agreements dated May 29, 1992, June 15, 1993, December 20, 1993 and last amended March 10, 2003. Under terms of the amended agreement, the Funds are charged the following annual fees based upon average daily net assets: MAXIMUM ANNUAL ADVISORY FEE ------------ Balanced Fund 0.95% Capital Appreciation Fund 1.15% Growth and Income Fund 0.90% Information and Technology Fund 1.10% International Equity Fund 1.25% International Equity Index Fund 0.90% Life Vision Aggressive Growth Fund 0.25% Life Vision Conservative Fund 0.25% Life Vision Growth and Income Fund 0.25% Life Vision Moderate Growth Fund 0.25% Mid-Cap Equity Fund 1.15% Mid Cap Value Equity Fund 1.25% Small Cap Growth Stock Fund 1.15% Small Cap Value Equity Fund 1.15% Tax Sensitive Growth Stock Fund 1.15% Value Income Stock Fund 0.80% Vantage Fund 1.60% The Investment Adviser has voluntarily agreed to waive all or a portion of its fees (and to reimburse Fund expenses) in order to limit operating expenses. Fee waivers and expense reimbursements are voluntary and may be terminated at any time. ADMINISTRATION AGREEMENT -- The Trust and SEI Investments Global Funds Services (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. DISTRIBUTION AGREEMENT -- The Trust and SEI Investments Distribution Co. (the "Distributor") are parties to a Distribution Agreement dated November 21, 1995. The Distributor will receive no fees for its distribution services under the plan for the Trust Shares of any Fund. With respect to the Investor Shares, Flex Shares and B Shares, the Distributor receives amounts, pursuant to a Distribution Plan and (in the case of Flex Shares and B 106 - -------------------------------------------------------------------------------- Shares) a Distribution and Service Plan, as outlined in the table below: MAXIMUM MAXIMUM FLEX SHARE B SHARE MAXIMUM DISTRIBUTION DISTRIBUTION INVESTOR SHARE AND AND DISTRIBUTION FEE SERVICE FEE SERVICE FEE ---------------- ------------ ------------ Balanced Fund 0.28% 1.00% -- Capital Appreciation Fund 0.68% 1.00% -- Growth and Income Fund 0.25% 1.00% -- Information and Technology Fund -- 1.00% -- International Equity Fund 0.33% 1.00% -- International Equity Index Fund 0.38% 1.00% -- Life Vision Aggressive Growth Fund -- -- 1.00% Life Vision Conservative Fund -- -- 1.00% Life Vision Growth and Income Fund -- -- 1.00% Life Vision Moderate Growth Fund -- -- 1.00% Mid-Cap Equity Fund 0.43% 1.00% -- Mid Cap Value Equity Fund -- 1.00% -- Small Cap Growth Stock Fund 0.50% 1.00% -- Small Cap Value Equity Fund -- 1.00% -- Tax Sensitive Growth Stock Fund -- 1.00% -- Value Income Stock Fund 0.33% 1.00% -- Vantage Fund -- 1.00% -- The Distributor has voluntarily agreed to waive all or a portion of their fees (and to reimburse Fund expenses) in order to limit operating expenses. Fee waivers and expense reimbursements are voluntary and may be terminated at any time. TRANSFER AGENCY AGREEMENTS -- The Trust and Federated Services Company are parties to a Transfer Agency servicing agreement dated May 14, 1994, as amended April 16, 2003, 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 certain transfer agency account activity processing and servicing. The transfer agency service fees are based upon a monthly per account charge for the total shareholder accounts at the Trust's transfer agent. CUSTODIAN AGREEMENTS -- SunTrust Bank, acts as custodian for all the Funds except the International Equity and the International Equity Index Funds (the "International Funds"), which utilizes Brown Brothers Harriman & Co. as custodian. Prior to January 29, 2003, Bank of New York served as custodian for the International Funds. Custodians are paid on the basis of the net assets and transaction costs 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. OTHER -- Certain officers of the Trust are also officers of the Administrator and/or 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 year ended May 31, 2003 the following Funds paid the Distributor through a reduction in the yield earned by the Funds on those repurchase agreements: FEES ------- Balanced Fund $ 9,515 Capital Appreciation Fund 13,299 Information and Technology Fund 650 Mid-Cap EquityFund 2,888 Mid Cap Value Equity Fund 1,898 Small Cap Growth Stock Fund 3,100 Small Cap Value Equity Fund 5,267 Tax Sensitive Growth Stock Fund 3,724 Value Income Stock Fund 28,323 Vantage Fund 1,068 4. Investment Transactions: The cost of purchases and the proceeds from sales of securities, excluding short-term investments and U.S. Government securities, for the year ended May 31, 2003, were as follows: PURCHASES SALES (000) (000) --------- -------- Balanced Fund $187,559 $193,937 Capital Appreciation Fund 858,919 867,241 Growth and Income Fund 367,732 484,844 Information and Technology Fund 270,774 283,014 International Equity Fund 183,421 192,252 International Equity Index Fund 73,124 62,437 Life Vision Aggressive Growth Fund 13,744 14,915 Life Vision Conservative Fund 1,372 596 Life Vision Growth and Income Fund 88,892 98,839 Life Vision Moderate Growth Fund 97,642 87,193 Mid-Cap Equity Fund 208,073 228,254 Mid Cap Value Equity Fund 76,585 109,935 Small Cap Growth Stock Fund 511,661 504,616 Small Cap Value Equity Fund 150,632 163,915 Tax Sensitive Growth Stock Fund 177,343 234,290 Value Income Stock Fund 413,717 304,606 Vantage Fund* 130,988 130,041 *Includes short sales and covers of short sales. The cost of U.S. Government security purchases and the proceeds from the sale of U.S. Government securities from the Balanced Fund during the year ended May 31, 2003 were $90,564,522 and $82,174,931, respectively. 107 NOTES TO FINANCIAL STATEMENTS (continued) - -------------------------------------------------------------------------------- STI CLASSIC EQUITY FUNDS MAY 31, 2003 5. Capital Share Transactions: Capital Share Transactions for the Funds were as follows (000):
CAPITAL GROWTH AND INFORMATION AND BALANCED FUND APPRECIATION FUND INCOME FUND TECHNOLOGY FUND -------------------- -------------------- --------------------- -------------------- 06/01/02- 06/01/01- 06/01/02- 06/01/01- 06/01/02- 06/01/01- 06/01/02- 06/01/01- 05/31/03 05/31/02 05/31/03 05/31/02 05/31/03 05/31/02 05/31/03 05/31/02 --------- --------- --------- --------- --------- --------- --------- --------- Trust Shares: Shares Issued 5,631 7,317 23,181 42,503 8,406 10,865 691 1,226 Shares Issued in Lieu of Cash Distributions 356 769 -- 676 201 115 -- -- Shares Redeemed (6,654) (4,133) (22,631) (29,530) (17,009) (11,203) (2,728) (3,771) --------- --------- --------- --------- --------- --------- --------- --------- Net Trust Share Transactions (667) 3,953 550 13,649 (8,402) (223) (2,037) (2,545) --------- --------- --------- --------- --------- --------- --------- --------- Investor Shares: Shares Issued 94 218 2,305 767 1,049 145 -- -- Shares Issued in Lieu of Cash Distributions 12 27 -- 133 21 367 -- -- Shares Redeemed (151) (100) (2,724) (2,079) (766) (515) -- -- --------- --------- --------- --------- --------- --------- --------- --------- Net Investor Share Transactions (45) 145 (419) (1,179) 304 (3) -- -- --------- --------- --------- --------- --------- --------- --------- --------- Flex Shares: Shares Issued 1,446 2,104 2,333 3,182 1,416 2,906 156 227 Shares Issued in Lieu of Cash Distributions 52 186 -- 83 11 -- -- -- Shares Redeemed (1,982) (1,277) (2,752) (2,123) (2,212) (1,215) (430) (527) --------- --------- --------- --------- --------- --------- --------- --------- Net Flex Share Transactions (484) 1,013 (419) 1,142 (785) 1,691 (274) (300) --------- --------- --------- --------- --------- --------- --------- --------- B Shares (2): Shares Issued -- -- -- -- -- -- -- -- Shares Issued in Lieu of Cash Distributions -- -- -- -- -- -- -- -- Shares Redeemed -- -- -- -- -- -- -- -- --------- --------- --------- --------- --------- --------- --------- --------- Net B Share Transactions -- -- -- -- -- -- -- -- --------- --------- --------- --------- --------- --------- --------- --------- Net Change in Capital Shares (1,196) 5,111 (288) 13,612 (8,883) 1,465 (2,311) (2,845) ========= ========= ========= ========= ========= ========= ========= ========= LIFE VISION MID-CAP EQUITY MID CAP SMALL CAP GROWTH MODERATE GROWTH FUND FUND VALUE EQUITY FUND STOCK FUND -------------------- -------------------- --------------------- -------------------- 06/01/02- 06/01/01- 06/01/02- 06/01/01- 06/01/02- 11/30/01*- 06/01/02- 06/01/01- 05/31/03 05/31/02 05/31/03 05/31/02 05/31/03 05/31/02 05/31/03 05/31/02 --------- --------- --------- --------- --------- ---------- --------- --------- Trust Shares: Shares Issued 4,043 3,884 15,332 24,362 5,129 17,613 10,120 11,664 Shares Issued in Lieu of Cash Distributions 189 157 -- -- 162 2 487 104 Shares Redeemed (3,260) (2,169) (19,371) (21,065) (9,676) (1,643) (7,574) (5,140) --------- --------- --------- --------- --------- ---------- --------- --------- Net Trust Share Transactions 972 1,872 (4,039) 3,297 (4,385) 15,972 3,033 6,628 --------- --------- --------- --------- --------- ---------- --------- --------- Investor Shares: Shares Issued -- -- 616 520 -- -- 541 368 Shares Issued in Lieu of Cash Distributions -- -- -- -- -- -- 22 6 Shares Redeemed -- -- (312) (541) -- -- (563) (499) --------- --------- --------- --------- --------- ---------- --------- --------- Net Investor Share Transactions -- -- 304 (21) -- -- -- (125) --------- --------- --------- --------- --------- ---------- --------- --------- Flex Shares (1): Shares Issued -- -- 468 707 400 518 494 647 Shares Issued in Lieu of Cash Distributions -- -- -- -- 12 -- 32 6 Shares Redeemed -- -- (505) (427) (243) (18) (527) (389) --------- --------- --------- --------- --------- ---------- --------- --------- Net Flex Share Transactions -- -- (37) 280 169 500 (1) 264 --------- --------- --------- --------- --------- ---------- --------- --------- B Shares (2): Shares Issued 306 -- -- -- -- -- -- -- Shares Issued in Lieu of Cash Distributions -- -- -- -- -- -- -- -- Shares Redeemed (7) -- -- -- -- -- -- -- --------- --------- --------- --------- --------- ---------- --------- --------- Net B Share Transactions 299 -- -- -- -- -- -- -- --------- --------- --------- --------- --------- ---------- --------- --------- Net Change in Capital Shares 1,271 1,872 (3,772) 3,556 (4,216) 16,472 3,032 6,767 ========= ========= ========= ========= ========= ========== ========= =========
* Commencement of Operations. (1) Flex Shares were offered beginning on March 11, 2002 for the Vantage Fund. (2) B Shares were offered beginning on March 11, 2003 for the Life Vision Aggressive Growth Fund, the Life Vision Conservative Fund, the Life Vision Growth and Income Fund and the Life Vision Moderate Growth Fund Amounts designated as "--" are either $0 or have been rounded to $0. 108
INTERNATIONAL LIFE VISION LIFE VISION INTERNATIONAL EQUITY INDEX AGGRESSIVE CONSERVATIVE EQUITY FUND FUND GROWTH FUND FUND -------------------- -------------------- -------------------- -------------------- 06/01/02- 06/01/01- 06/01/02- 06/01/01- 06/01/02- 06/01/01- 03/11/03*- 05/31/03 05/31/02 05/31/03 05/31/02 05/31/03 05/31/02 05/31/03 --------- --------- --------- --------- --------- --------- ---------- Trust Shares: Shares Issued 10,800 13,263 7,835 14,145 625 1,990 -- Shares Issued in Lieu of Cash Distributions 83 -- 108 83 11 6 -- Shares Redeemed (14,173) (6,505) (7,797) (5,918) (877) (722) -- --------- --------- --------- --------- --------- --------- ---------- Net Trust Share Transactions (3,290) 6,758 146 8,310 (241) 1,274 -- --------- --------- --------- --------- --------- --------- ---------- Investor Shares: Shares Issued 2,102 22,904 2,898 13,957 -- -- -- Shares Issued in Lieu of Cash Distributions 3 -- -- 1 -- -- -- Shares Redeemed (1,869) (23,074) (2,039) (13,936) -- -- -- --------- --------- --------- --------- --------- --------- ---------- Net Investor Share Transactions 236 (170) 859 22 -- -- -- --------- --------- --------- --------- --------- --------- ---------- Flex Shares: Shares Issued 890 893 600 790 -- -- -- Shares Issued in Lieu of Cash Distributions -- -- -- -- -- -- -- Shares Redeemed (883) (945) (588) (853) -- -- -- --------- --------- --------- --------- --------- --------- ---------- Net Flex Share Transactions 7 (52) 12 (63) -- -- -- --------- --------- --------- --------- --------- --------- ---------- B Shares (2): Shares Issued -- -- -- -- 123 -- 80 Shares Issued in Lieu of Cash Distributions -- -- -- -- -- -- -- Shares Redeemed -- -- -- -- -- -- (3) --------- --------- --------- --------- --------- --------- ---------- Net B Share Transactions -- -- -- -- 123 -- 77 --------- --------- --------- --------- --------- --------- ---------- Net Change in Capital Shares (3,047) 6,536 1,017 8,269 (118) 1,274 77 ========= ========= ========= ========= ========= ========= ==========
LIFE VISION GROWTH AND INCOME FUND -------------------- 06/01/02- 06/01/01- 05/31/03 05/31/02 --------- --------- Trust Shares: Shares Issued 2,189 5,298 Shares Issued in Lieu of Cash Distributions 106 61 Shares Redeemed (3,678) (1,208) --------- --------- Net Trust Share Transactions (1,383) 4,151 --------- --------- Investor Shares: Shares Issued -- -- Shares Issued in Lieu of Cash Distributions -- -- Shares Redeemed -- -- --------- --------- Net Investor Share Transactions -- -- --------- --------- Flex Shares: Shares Issued -- -- Shares Issued in Lieu of Cash Distributions -- -- Shares Redeemed -- -- --------- --------- Net Flex Share Transactions -- -- --------- --------- B Shares (2): Shares Issued 216 -- Shares Issued in Lieu of Cash Distributions -- -- Shares Redeemed -- -- --------- --------- Net B Share Transactions 216 -- --------- --------- Net Change in Capital Shares (1,167) 4,151 ========= =========
SMALL CAP VALUE TAX SENSITIVE VALUE INCOME VANTAGE EQUITY FUND GROWTH STOCK FUND STOCK FUND FUND -------------------- -------------------- -------------------- --------------------- 06/01/02- 06/01/01- 06/01/02- 06/01/01- 06/01/02- 06/01/01- 06/01/02- 11/30/01*- 05/31/03 05/31/02 05/31/03 05/31/02 05/31/03 05/31/02 05/31/03 05/31/02 --------- --------- --------- --------- --------- --------- --------- ---------- Trust Shares: Shares Issued 9,369 17,156 3,969 719 20,952 15,102 169 929 Shares Issued in Lieu of Cash Distributions 110 166 -- -- 785 609 -- -- Shares Redeemed (13,947) (8,007) (4,945) (7,405) (13,723) (14,311) (585) (16) --------- --------- --------- --------- --------- --------- --------- ---------- Net Trust Share Transactions (4,468) 9,315 (976) (6,686) 8,014 1,400 (416) 913 --------- --------- --------- --------- --------- --------- - -------- ---------- Investor Shares: Shares Issued -- -- -- -- 1,168 394 -- -- Shares Issued in Lieu of Cash Distributions -- -- -- -- 77 57 -- -- Shares Redeemed -- -- -- -- (1,386) (970) -- -- --------- --------- --------- --------- --------- --------- --------- ---------- Net Investor Share Transactions -- -- -- -- (141) (519) -- -- --------- --------- --------- --------- --------- --------- --------- ---------- Flex Shares (1): Shares Issued 1,087 1,554 417 846 909 813 50 89 Shares Issued in Lieu of Cash Distributions -- 1 -- -- 20 4 -- -- Shares Redeemed (839) (207) (2,353) (2,309) (1,272) (1,120) (32) -- --------- --------- --------- --------- --------- --------- --------- ---------- Net Flex Share Transactions 248 1,348 (1,936) (1,463) (343) (303) 18 89 --------- --------- --------- --------- --------- --------- --------- ---------- B Shares (2): Shares Issued -- -- -- -- -- -- -- -- Shares Issued in Lieu of Cash Distributions -- -- -- -- -- -- -- -- Shares Redeemed -- -- -- -- -- -- -- -- --------- --------- --------- --------- --------- --------- --------- ---------- Net B Share Transactions -- -- -- -- -- -- -- -- --------- --------- --------- --------- --------- --------- --------- ---------- Net Change in Capital Shares (4,220) 10,663 (2,912) (8,149) 7,530 578 (398) 1,002 ========= ========= ========= ========= ========= ========= ========= ==========
109 NOTES TO FINANCIAL STATEMENTS (continued) - -------------------------------------------------------------------------------- STI CLASSIC EQUITY FUNDS MAY 31, 2003 6. Federal Tax Policies and 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 may be subject to taxes imposed by countries in which they invest with respect to their investments in issuer existing or operating in such countries. Such taxes are generally based on income earned. The Funds accrue such taxes when the related income is earned. The timing and characterization of certain income and capital gains distributions are determined annually in accordance with Federal tax regulations which may differ from accounting principles generally accepted in the United States of America. As a result, net investment income (loss) and net realized gain (loss) on investment transactions for a reporting period may differ significantly from distributions during such period. These book/tax differences may be temporary or permanent. To the extent these differences are permanent in nature, they are charged or credited to paid-in-capital, undistributed net investment income (loss), or accumulated net realized gain (loss), as appropriate, in the period that the differences arise. Accordingly, the following permanent differences, primarily attributable to net operating losses, the classification of short-term capital gains and ordinary income for tax purposes, PFIC gains, foreign exchange gain, return of capital distribution and paydowns on mortgage-backed securities have been reclassified to/from the following accounts. UNDISTRIBUTED NET ACCUMULATED INVESTMENT REALIZED PAID-IN- INCOME (LOSS) GAIN (LOSS) CAPITAL (000) (000) (000) ------------- ----------- -------- Balanced Fund $ 644 $ (644) $ -- Capital Appreciation Fund 5,958 -- (5,958) Information and Technology Fund 221 -- (221) International Equity Fund 1,296 (1,296) -- International Equity Index Fund 497 (497) -- Life Vision Aggressive Growth Fund 3 -- (3) Mid-Cap Equity Fund 612 -- (612) Mid Cap Value Equity Fund (1) 1 -- Small Cap Growth Stock Fund 5,050 2 (5,052) Tax Sensitive Growth Stock Fund* 1,842 -- (1,842) Vantage Fund 58 (22) (36) * Information reflects fund activity based on the Fund's October 31, 2002 tax reporting year. Amounts designated as "--" are either $0 or have been rounded to $0. The tax character of dividends and distributions paid during the years ended May 31, 2003 and May 31, 2002 were as follows (000):
ORDINARY LONG-TERM RETURN OF INCOME CAPITAL GAINS CAPITAL TOTALS 2003 2002 2003 2002 2003 2002 2003 2002 ------- ------ ------ ------- ---- ---- ------- ------- Balanced Fund $ 5,021 $4,785 $ -- $ 7,838 $-- $-- $ 5,021 $12,623 Capital Appreciation Fund -- -- -- 13,155 -- -- -- 13,155 Growth and Income Fund 6,686 4,435 -- -- -- -- 6,686 4,435 Information and Technology Fund -- -- -- -- -- -- -- -- International Equity Fund 1,452 -- -- -- -- -- 1,452 -- International Equity Index Fund 1,082 778 -- -- -- -- 1,082 778 Life Vision Aggressive Growth Fund 89 47 -- -- 3 10 92 57 Life Vision Conservative Fund -- -- -- -- -- -- -- -- Life Vision Growth and Income Fund 931 598 -- -- -- -- 931 598 Life Vision Moderate Growth Fund 1,622 1,472 -- -- -- -- 1,622 1,472 Mid-Cap Equity Fund -- -- -- -- -- -- -- -- Mid Cap Value Equity Fund 2,801 128 -- -- -- -- 2,801 128 Small Cap Growth Stock Fund -- -- 9,104 2,415 -- -- 9,104 2,415 Small Cap Value Equity Fund 2,605 3,515 -- -- -- -- 2,605 3,515 Tax Sensitive Growth Stock Fund -- -- -- -- -- -- -- -- Value Income Stock Fund 10,325 8,410 -- -- -- -- 10,325 8,410 Vantage Fund -- -- -- -- -- -- -- --
Amounts designated as "--" are either $0 or have been rounded to $0. 110 - -------------------------------------------------------------------------------- As of May 31, 2003, the components of Distributable Earnings (Accumulated Losses) on a tax basis were as follows (000):
UNDISTRIBUTED POST UNREALIZED OTHER ORDINARY CAPITAL LOSS OCTOBER APPRECIATION TEMPORARY INCOME CARRYFORWARDS LOSS (DEPRECIATION) DIFFERENCES ------------- ------------- --------- -------------- ----------- Balanced Fund $ 863 $ (15,343) $ (8,276) $ 31,162 -- Capital Appreciation Fund -- (109,593) (104,275) 214,634 -- Growth and Income Fund 1,189 (56,796) (26,994) 67,285 -- Information and Technology Fund -- (88,575) (1,160) 2,898 -- International Equity Fund 2,224 (68,044) (24,566) (4,120) -- International Equity Index Fund 2,770 (46,606) (11,919) (61,208) (482) Life Vision Aggressive Growth Fund -- (888) (208) (3,678) -- Life Vision Conservative Fund 1 -- -- 18 -- Life Vision Growth and Income Fund 117 (2,844) (2,516) (1,691) -- Life Vision Moderate Growth Fund 279 (1,139) (1,548) (2,506) -- Mid-Cap Equity Fund -- (50,978) -- 15,418 -- Mid Cap Value Equity Fund 127 (21,169) (14,379) 3,542 -- Small Cap Growth Stock Fund -- (52,225) (24,851) 79,844 207 Small Cap Value Equity Fund 1,454 (25,211) -- 58,516 -- Tax Sensitive Growth Stock Fund* -- (247,015) -- 46,655 (835) Value Income Stock Fund 2,164 (213,196) (48,752) 40,869 -- Vantage Fund -- (1,198) (735) 202 --
Amounts designated as "-" are either $0 or have been rounded to $0. Post-October losses represent losses realized on investment and foreign currency transactions from November 1, 2002 through May 31, 2003 that, in accordance with Federal income tax regulations, the Fund may elect 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 future net realized capital gains. The Funds had capital loss carryforwards at May 31, 2003 as follows (000):
EXPIRING EXPIRING EXPIRING EXPIRING EXPIRING EXPIRING 2006 2007 2008 2009 2010 2011 -------- -------- -------- -------- -------- -------- Balanced Fund $ -- $ -- $ -- $ -- $ -- $15,343 Capital Appreciation Fund -- -- 16,350 -- 4,420 88,823 Growth and Income Fund -- -- -- 724 2,132 53,940 Information and Technology Fund -- -- 18 1,084 68,371 19,102 International Equity Fund 3,868 2,086 -- 3,394 27,543 31,153 International Equity Index Fund -- -- -- 6,233 23,827 16,546 Life Vision Aggressive Growth Fund -- -- -- -- 15 873 Life Vision Conservative Fund -- -- -- -- -- -- Life Vision Growth and Income Fund -- -- -- -- 1,545 1,299 Life Vision Moderate Growth Fund -- -- -- -- 586 553 Mid-Cap Equity Fund -- -- -- -- 3,489 47,489 Mid Cap Value Equity Fund -- -- -- -- -- 21,169 Small Cap Growth Stock Fund -- 4,189 -- -- -- 48,036 Small Cap Value Equity Fund -- -- 22,106 -- 3,105 -- Tax Sensitive Growth Stock Fund* -- -- -- 194,362 52,653 -- Value Income Stock Fund -- -- -- 184,254 -- 28,942 Vantage Fund -- -- -- -- -- 1,198
* Information reflects fund activity based on the Fund's October 31, 2002 tax reporting year. Amounts designated as "-" are either $0 or have been rounded to $0. 111 NOTES TO FINANCIAL STATEMENTS (concluded) - -------------------------------------------------------------------------------- STI CLASSIC EQUITY FUNDS MAY 31, 2003 During the year ended May 31, 2003, the Small Cap Value Equity Fund utilized $20,545,132 in capital loss carryforwards. Included in the Small Cap Growth Stock Fund is $4,189,090 of capital loss carryforwards acquired in a previous merger. The utilization of this capital loss carryover may be limited pursuant to Internal Revenue Code Section 382. At May 31, 2003, the total cost of securities and the net realized gains or losses on securities sold for Federal income tax purposes are different from amounts reported for financial reporting purposes due to wash sales which cannot be used for Federal income tax purposes in the current year and have been deferred for use in future years. The aggregate gross unrealized appreciation and depreciation for securities held by the Funds at May 31, 2003, were as follows:
AGGREGATE AGGREGATE NET GROSS GROSS UNREALIZED FEDERAL UNREALIZED UNREALIZED APPRECIATION TAX COST APPRECIATION (DEPRECIATION) (DEPRECIATION) (000) (000) (000) (000) ---------- ------------ -------------- -------------- Balanced Fund $ 306,166 $ 35,761 $ (4,599) $ 31,162 Capital Appreciation Fund 1,218,704 263,770 (49,136) 214,634 Growth and Income Fund 672,595 91,538 (24,253) 67,285 Information and Technology Fund 19,512 2,964 (66) 2,898 International Equity Fund 226,414 16,699 (21,065) (4,366) International Equity Index Fund 374,188 21,129 (82,464) (61,335) Life Vision Aggressive Growth Fund 33,323 902 (4,580) (3,678) Life Vision Conservative Fund 777 18 -- 18 Life Vision Growth and Income Fund 63,067 2,732 (4,423) (1,691) Life Vision Moderate Growth Fund 98,700 5,681 (8,187) (2,506) Mid-Cap Equity Fund 146,249 16,096 (678) 15,418 Mid Cap Value Equity Fund 113,129 10,020 (6,478) 3,542 Small Cap Growth Stock Fund 642,209 113,195 (33,351) 79,844 Small Cap Value Equity Fund 564,403 96,342 (37,826) 58,516 Tax Sensitive Growth Stock Fund 270,052 58,320 (11,665) 46,655 Value Income Stock Fund 788,879 78,922 (38,053) 40,869 Vantage Fund 5,243 254 (52) 202
7. Concentrations/Risks: The Information and Technology Fund invests a substantial portion of its assets in securities in the technology industry. Therefore, it may be more affected by economic and political developments in that industry than a general equity fund would be. The International Equity and International Equity Index Funds invest in securities of foreign issuers in various countries. These investments may involve certain considerations and risks not typically associated with investments in the United States as a result of, among other factors, the possibility of future political and economic developments and the level of governmental supervision and regulation of securities markets in the respective countries. 8. 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 331/3% of the total asset value of the Fund (including the loan collateral). No Fund will lend portfolio securities to its investment adviser, or its affiliates unless it has applied for and received specific authority to do so from the Securities and Exchange Commission. 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 the Boston Global Investment Trust-Enhanced Portfolio. This investment consists of money market instruments including money market mutual funds registered under the Investment Company Act of 1940, commercial paper, repurchase agreements, U.S. Treasury Bills and U.S. agency obligations. 112 REPORT OF INDEPENDENT AUDITORS - -------------------------------------------------------------------------------- STI CLASSIC EQUITY FUNDS MAY 31, 2003 To the Board of Trustees and Shareholders of STI Classic Funds: In our opinion, the accompanying statements of net assets of Balanced Fund, Capital Appreciation Fund, Growth and Income Fund, Life Vision Aggressive Growth Fund, Life Vision Conservative Fund, Life Vision Growth and Income Fund, Life Vision Moderate Growth Fund, Mid-Cap Equity Fund, Mid Cap Value Equity Fund, Small Cap Growth Stock Fund, Small Cap Value Equity Fund, Tax Sensitive Growth Stock Fund and Value Income Stock Fund, and the statements of assets and liabilities, including the schedules of investments, of Information and Technology Fund, International Equity Fund, International Equity Index Fund and Vantage Fund (seventeen of the funds constituting STI Classic Funds, hereafter referred to as the "Funds") and the related statements of operations and of changes in net assets and the financial highlights present fairly, in all material respects, the financial position of the Funds at May 31, 2003, the results of each of their operations for the year (or period) then ended, the changes in each of their net assets and the financial highlights for each of the two years (or periods) then ended and for the Life Vision Conservative Fund the changes in its net assets and its financial highlights for the period then ended, in conformity with accounting principles generally accepted in the United States of America. These financial statements and financial highlights (hereafter referred to as "financial statements") are the responsibility of the Funds' management; our responsibility is to express an opinion on these financial statements based on our audits. We conducted our audits of these financial statements in accordance with auditing standards generally accepted in the United States of America, which require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting principles used and significant estimates made by management, and evaluating the overall financial statement presentation. We believe that our audits, which included confirmation of securities at May 31, 2003 for International Equity Fund and International Equity Index Fund by correspondence with the custodian, and physical inspection of securities at May 31, 2003 for all other funds, provide a reasonable basis for our opinion. The financial highlights for each of the three years (or periods) ended May 31, 2001 were audited by other independent accountants who have ceased operations. Those independent accountants expressed an unqualified opinion on those financial statements in their report dated July 18, 2001. The financial highlights of Growth and Income Fund, Life Vision Aggressive Growth Fund, Life Vision Growth and Income Fund, and Life Vision Moderate Growth Fund for the year ended November 30, 1998 were audited by other independent accountants whose report dated January 15, 1999 expressed an unqualified opinion on those financial statements. PricewaterhouseCoopers LLP Philadelphia, Pennsylvania July 24, 2003 113 TRUSTEES AND OFFICERS OF STI CLASSIC FUNDS - -------------------------------------------------------------------------------- (UNAUDITED) Information pertaining to the trustees and officers of the Trust is set forth below. Trustees who are not deemed to be "interested persons" of the Trust as defined in the 1940 Act are referred to as "Independent Trustees." Board Members who are deemed to be "interested persons" of the Trust are referred to as "Interested Board Members." Messrs. Courts and Ridley are Trustees who may be deemed to be "interested" persons of the Trust.
- ------------------------------------------------------------------------------------------------------------------------------------ TERM OF NUMBER OF OFFICE PORTFOLIOS AND PRINCIPAL IN STI CLASSIC NAME POSITION(S) LENGTH OF OCCUPATION(S) COMPLEX OTHER DIRECTORSHIPS ADDRESS, HELD WITH TIME DURING PAST OVERSEEN BY HELD BY AND AGE(1) THE TRUST SERVED(2) 5 YEARS BOARD MEMBER(3) BOARD MEMBER(4) - ------------------------------------------------------------------------------------------------------------------------------------ INTERESTED BOARD MEMBERS(5) - ---------------- Richard W. Courts, II, Trustee Since Chairman of the Board, Atlantic 48 Current Trustee of STI Classic 67 November 2001 Investment Company, 1970 to the Variable Trust. present. - ------------------------------------------------------------------------------------------------------------------------------------ Clarence H. Ridley, 61 Trustee Since Chairman of the Board; Haverty 48 Current Trustee of STI Classic November 2001 Furniture Companies, 2001 to the Variable Trust. present; Partner, King and Spaulding LLP (law firm), 1971 to 2000. - ------------------------------------------------------------------------------------------------------------------------------------ INDEPENDENT BOARD MEMBERS - ------------- Thomas Gallagher, 55 Trustee Since President, Genuine Parts Company 48 Director, National Service May 2000 Wholesale Distribution, 1970 to the Industries; Director, Oxford present. Industries. Current Trustee of STI Classic Variable Trust. - ------------------------------------------------------------------------------------------------------------------------------------ F. Wendell Gooch, 70 Trustee Since Retired. 48 Current Trustee on the Board May 1992 Board of Trustees for the SEI Family of Funds, The Capitol Mutual Funds and STI Classic Variable Trust. - ------------------------------------------------------------------------------------------------------------------------------------ James O. Robbins, 60 Trustee Since President and Chief Executive 48 Director, NCR; Director, May 2000 Officer, Cox Communications, Inc., Cox Communications, 1983 to the present. Current Trustee of STI Classic Variable Trust. - ------------------------------------------------------------------------------------------------------------------------------------ Jonathan T. Walton, 73 Trustee Since Retired. 48 Trustee, W.K. Kellogg Trust. February 1998 Current Trustee of STI Classic Variable Trust. - ------------------------------------------------------------------------------------------------------------------------------------
114 - --------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------------ TERM OF NUMBER OF OFFICE PORTFOLIOS AND PRINCIPAL IN STI CLASSIC NAME POSITION(S) LENGTH OF OCCUPATION(S) COMPLEX OTHER DIRECTORSHIPS ADDRESS, HELD WITH TIME DURING PAST OVERSEEN BY HELD BY AND AGE(1) THE TRUST SERVED(2) 5 YEARS BOARD MEMBER(3) BOARD MEMBER(4) - ------------------------------------------------------------------------------------------------------------------------------------ OFFICERS - -------- James R. Foggo, 38 President Since Vice President and Assistant N/A N/A November, Secretary of SEI Investments since 2000 1998. Associate, Paul Weiss, Rifkind, Wharton & Garrison, 1998;Associate, Baker & McKenzie 1995-1998. - ------------------------------------------------------------------------------------------------------------------------------------ Timothy D. Barto, 35 Vice Since Employed by SEI Investments since N/A N/A President November, October 1999. Vice President and and 2001 Assistant Secretary of the Adviser, Secretary Administrator and Distributor since December 1999. Associate at Dechert, Price & Rhoads (1997-1999). - ------------------------------------------------------------------------------------------------------------------------------------ Todd B. Cipperman, 37 Vice Since Senior Vice President and General N/A N/A President May, 2000 Counsel of SEI Investments; Senior and Vice President, General Counsel and Assistant Secretary of the Adviser, the Secretary Administrator and the Distributor since 2000.Vice President and Assistant Secretary of SEI Investments, the Adviser, the Administrator and the Distributor, 1995-2000. - ------------------------------------------------------------------------------------------------------------------------------------ Lydia A. Gavalis, 38 Vice Since Vice President and Assistant N/A N/A President May, 1998 Secretary of SEI Investments, the and Adviser, the Administrator and the Assistant Distributor since 1998. Assistant Secretary General Counsel and Director of Arbitration, Philadelphia Stock Exchange (1989-1998). - ------------------------------------------------------------------------------------------------------------------------------------ Christine M. Vice Since Employed by SEI Investments N/A N/A McCullough, 42 President May, 2000 since November 1, 1999. Vice and President and Assistant Secretary of Assistant the Adviser, the Administrator and Secretary the Distributor since December 1999. Associate at White and Williams LLP, 1991-1999. - ------------------------------------------------------------------------------------------------------------------------------------
1 Each trustee and officer may be contacted by writing to c/o STI Classic Funds, SEI Investments Company, Oaks, PA 19456. 2 Each trustee shall hold office during the lifetime of this Trust until the election and qualification of his or her successor, or until he or she sooner dies, resigns or is removed in accordance with the Trust's Declaration of Trust. 3 The "STI Classic Complex" consists of all registered investment companies for which Trusco Capital Management, Inc. serves as investment adviser. As of May 31, 2003, the STI Classic Complex consisted of 48 Funds. 4 Directorships of companies required to report to the U.S. Securities and Exchange Commission under the Securities Exchange Act of 1934 (i.e., "public companies") or other investment companies registered under the 1940 Act. 5 Mr. Courts is deemed an interested trustee because of his directorships with affiliates of the Adviser. Mr. Ridley is deemed an interested trustee because of his material business relationships with the parent to the Adviser. 115 TRUSTEES AND OFFICERS OF STI CLASSIC FUNDS (continued) - -------------------------------------------------------------------------------- (UNAUDITED)
- ------------------------------------------------------------------------------------------------------------------------------------ TERM OF NUMBER OF OFFICE PORTFOLIOS AND PRINCIPAL IN STI CLASSIC NAME POSITION(S) LENGTH OF OCCUPATION(S) COMPLEX OTHER DIRECTORSHIPS ADDRESS, HELD WITH TIME DURING PAST OVERSEEN BY HELD BY AND AGE(1) THE TRUST SERVED(2) 5 YEARS BOARD MEMBER(3) BOARD MEMBER(4) - ------------------------------------------------------------------------------------------------------------------------------------ OFFICERS (CONTINUED) - -------- Sherry Kajdan Vice Since Vice President and Assistant N/A N/A Vetterlein, 40 President February, Secretary of SEI Investments since and 2000 January 2001. Shareholder/Partner, Assistant Buchanan Ingersoll Professional Secretary Corporation (law firm) (1992-2000). - ------------------------------------------------------------------------------------------------------------------------------------ William E. Vice Since Vice President and Assistant N/A N/A Zitelli, Jr., 34 President November, Secretary of the Administrator and and 2000 Distributor since August 2000. Vice Assistant President, Merrill Lynch & Co. Asset Secretary Management Group (1998 - 2000). Associate at Pepper Hamilton LLP (1997 - 1998). - ------------------------------------------------------------------------------------------------------------------------------------ Jennifer Spratley, 34 Treasurer Since Funds Accounting Director, SEI N/A N/A and May, 2000 Investments, 1999 - present; Audit CFO Manager, Ernst & Young LLP (1991-1999). - ------------------------------------------------------------------------------------------------------------------------------------
1 Each trustee and officer may be contacted by writing to c/o STI Classic Funds, SEI Investments Company, Oaks, PA 19456. 2 The "STI Classic Complex" consists of all registered investment companies for which Trusco Capital Management, Inc. serves as investment adviser. As of May 31, 2003, the STI Classic Complex consisted of 48 Funds. 116 NOTICE TO SHAREHOLDERS - -------------------------------------------------------------------------------- STI CLASSIC EQUITY FUNDS MAY 31, 2003 (UNAUDITED) For shareholders that do not have a May 31, 2003 tax year end, this notice is for informational purposes only. For shareholders with a May 31, 2003 tax year end, please consult your tax advisor as to the pertinence of this notice. For the fiscal year ended May 31, 2003, each Fund is designating the following items with regard to distributions paid during the year:
DIVIDENDS QUALIFYING LONG TERM QUALIFYING DIVIDEND FOREIGN (20% RATE) ORDINARY FOR CORPORATE INCOME TAX CAPITAL GAIN INCOME TOTAL DIVIDENDS REC. (15% TAX RATE WITHHOLDING FUND DISTRIBUTION DISTRIBUTIONS DISTRIBUTIONS DEDUCTIONS (1) FOR QDI) (2) PASS THROUGH (3) -------- ------------ ------------- ------------- -------------- ------------- ---------------- Balanced Fund 0.00% 100.00% 100.00% 24.22% 100.00% 0.00% Capital Appreciation Fund 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% Growth and Income Fund 0.00% 100.00% 100.00% 100.00% 100.00% 0.00% Information and Technology Fund 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% International Equity Fund 0.00% 100.00% 100.00% 0.00% 100.00% 27.01% International Equity Index Fund 0.00% 100.00% 100.00% 0.00% 100.00% 60.32% Life Vision Aggressive Growth Fund 0.00% 100.00% 100.00% 0.00% 100.00% 0.00% Life Vision Conservative Growth Fund 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% Life Vision Growth and Income Fund 0.00% 100.00% 100.00% 0.00% 100.00% 0.00% Life Vision Moderate Growth Fund 0.00% 100.00% 100.00% 0.00% 100.00% 0.00% Mid-Cap Equity Fund 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% Mid Cap Value Equity Fund 0.00% 100.00% 100.00% 42.83% 100.00% 0.00% Small Cap Growth Stock Fund 100.00% 0.00% 100.00% 0.00% 0.00% 0.00% Small Cap Value Equity Fund 0.00% 100.00% 100.00% 99.66% 100.00% 0.00% Tax Sensitive Growth Stock Fund (4) 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% Value Income Stock Fund 0.00% 100.00% 100.00% 99.78% 100.00% 0.00% Vantage Fund 0.00% 0.00% 0.00% 0.00% 0.00% 0.00%
- ------------------------------------ (1) Qualifying dividends represent dividends which qualify for the corporate dividends received deduction and is reflected as a percentage of "Ordinary Income Distributions." (2) The percentage in this column represents the amount of "Qualifying Dividend Income" as created by the Jobs and Growth Tax Relief Reconciliation Act of 2003 and is reflected as a percentage of "Ordinary Income Distributions." It is the intention of each of the aforementioned Funds to designate the maximum amount permitted by the law. (3) Foreign tax credit pass through represents the amount eligible for the foreign tax credit and is reflected as a percentage of "Ordinary Income Distributions." (4) Information reflects fund activity based on the Fund's October 31, 2002 tax reporting year. 117 NOTES - -------------------------------------------------------------------------------- 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 Classic LOGO OMITTED] BACKED BY TRADITION. STRENGTHENED BY EXPERIENCE.(SM) STI-AR-001-0300 ITEM 2. CODE OF ETHICS. Not applicable -- only effective for annual reports with periods ending on or after July 15, 2003. ITEM 3. AUDIT COMMITTEE FINANCIAL EXPERT. Not applicable -- only effective for annual reports with periods ending on or after July 15, 2003. ITEM 4. PRINCIPAL ACCOUNTANT FEES AND SERVICES. Not applicable -- only effective for annual reports with periods ending on or after December 15, 2003. ITEM 5. AUDIT COMMITTEE OF LISTED REGISTRANTS. Not applicable. ITEM 6. (RESERVED) ITEM 7. DISCLOSURE OF PROXY VOTING POLICIES AND PROCEDURES FOR CLOSED-END MANAGEMENT INVESTMENT COMPANIES. Not applicable. ITEM 8. (RESERVED) ITEM 9. CONTROLS AND PROCEDURES. (a) The certifying officers, whose certifications are included herewith, have evaluated the registrant's disclosure controls and procedures within 90 days of the filing date of this report. In their opinion, based on their evaluation, the registrant's disclosure controls and procedures are adequately designed, and are operating effectively to ensure, that information required to be disclosed by the registrant in the reports it files or submits under the Securities Exchange Act of 1934 is recorded, processed, summarized and reported within the time periods specified in the Securities and Exchange Commission's rules and forms. (b) There were no significant changes in the registrant's internal controls or in other factors that could significantly affect these controls subsequent to the date of our evaluation, including any corrective actions with regard to significant deficiencies and material weaknesses. ITEMS 10. EXHIBITS. (a)(1) Not applicable. (a)(2) A separate certification for the principal executive officer and the principal financial officer of the registrant as required by Rule 30a-2(a) under the Investment Company Act of 1940, as amended (17 CFR 270.30a-2(a)), are filed herewith. (b) Officer certifications as required by Rule 30a-2(b) under the Investment Company Act of 1940, as amended (17 CFR 270.30a-2(b)) also accompany this filing as an Exhibit. - -------------------------------------------------------------------------------- SIGNATURES Pursuant to the requirements of the securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized. (Registrant) STI Classic Funds By (Signature and Title)* /s/ James R. Foggo ------------------ James R. Foggo, President Date 07/25/03 Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated. By (Signature and Title)* /s/ James R. Foggo ------------------ James R. Foggo, President Date 07/25/03 By (Signature and Title)* /s/ Jennifer E. Spratley ------------------------ Jennifer E. Spratley, CFO Date 07/25/03 * Print the name and title of each signing officer under his or her signature. EX-99.302CERT 3 certification302_jf.txt STI CLASSIC EQUITY 302 CERTIFICATION JF CERTIFICATION PURSUANT TO SECTION 302 OF THE SARBANES-OXLEY ACT OF 2002 I, James R. Foggo, certify that: 1. I have reviewed this report on Form N-CSR of STI Classic Funds; 2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; 3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations, changes in net assets, and cash flows (if the financial statements are required to include a statement of cash flows) of the registrant as of, and for, the periods presented in this report; 4. The registrant's other certifying officers and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Rule 30a-2(c) under the Investment Company Act of 1940) for the registrant and have: a) designed such disclosure controls and procedures to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; b) evaluated the effectiveness of the registrant's disclosure controls and procedures as of a date within 90 days prior to the filing date of this report (the "Evaluation Date"); and c) presented in this report our conclusions about the effectiveness of the disclosure controls and procedures based on our evaluation as of the Evaluation Date; 5. The registrant's other certifying officers and I have disclosed, based on our most recent evaluation, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions): a) all significant deficiencies in the design or operation of internal controls which could adversely affect the registrant's ability to record, process, summarize, and report financial data and have identified for the registrant's auditors any material weaknesses in internal controls; and b) any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal controls; and 6. The registrant's other certifying officers and I have indicated in this report whether or not there were significant changes in internal controls or in other factors that could significantly affect internal controls subsequent to the date of our most recent evaluation, including any corrective actions with regard to significant deficiencies and material weaknesses. Date: July 25, 2003 /s/ James R. Foggo - ------------------ James R. Foggo President EX-99.302CERT 4 certification302_js.txt STI CLASSIC EQUITY 302 CERTIFICATION JS CERTIFICATION PURSUANT TO SECTION 302 OF THE SARBANES-OXLEY ACT OF 2002 I, Jennifer E. Spratley, certify that: 1. I have reviewed this report on Form N-CSR of STI Classic Funds; 2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; 3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations, changes in net assets, and cash flows (if the financial statements are required to include a statement of cash flows) of the registrant as of, and for, the periods presented in this report; 4. The registrant's other certifying officers and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Rule 30a-2(c) under the Investment Company Act of 1940) for the registrant and have: a) designed such disclosure controls and procedures to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; b) evaluated the effectiveness of the registrant's disclosure controls and procedures as of a date within 90 days prior to the filing date of this report (the "Evaluation Date"); and c) presented in this report our conclusions about the effectiveness of the disclosure controls and procedures based on our evaluation as of the Evaluation Date; 5. The registrant's other certifying officers and I have disclosed, based on our most recent evaluation, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions): a) all significant deficiencies in the design or operation of internal controls which could adversely affect the registrant's ability to record, process, summarize, and report financial data and have identified for the registrant's auditors any material weaknesses in internal controls; and b) any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal controls; and 6. The registrant's other certifying officers and I have indicated in this report whether or not there were significant changes in internal controls or in other factors that could significantly affect internal controls subsequent to the date of our most recent evaluation, including any corrective actions with regard to significant deficiencies and material weaknesses. Date: July 25, 2003 /s/ Jennifer Spratley - --------------------- Jennifer E. Spratley CFO EX-99.906CERT 5 certification906_jf.txt STI CLASSIC EQUITY 906 CERTIFICATION JF CERTIFICATION Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 The undersigned, the President of STI Classic Funds (the "Funds"), with respect to the Form N-CSR for the period ended May 31, 2003 as filed with the Securities and Exchange Commission, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, hereby certifies that, to the best of my knowledge: 1. such Form N-CSR fully complies with the requirements of section 13(a) or 15(d) of the Securities Exchange Act of 1934; and 2. the information contained in such Form N-CSR fairly presents, in all material respects, the financial condition and results of operations of the Funds. Dated: July 25, 2003 /s/ James R. Foggo ------------------ James R. Foggo A signed original of this written statement required by Section 906, or other document authenticating, acknowledging, or otherwise adopting the signature that appears in typed form within the electronic version of this written statement required by Section 906, has been provided to STI Classic Funds and will be retained by STI Classic Funds and furnished to the Securities and Exchange Commission or its staff upon request. EX-99.906CERT 6 certification906_js.txt STI CLASSIC EQUITY 906 CERTIFICATION JS CERTIFICATION Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 The undersigned, the Chief Financial Officer of STI Classic Funds (the "Funds"), with respect to the Form N-CSR for the period ended May 31, 2003 as filed with the Securities and Exchange Commission, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, hereby certifies that, to the best of my knowledge: 1. such Form N-CSR fully complies with the requirements of section 13(a) or 15(d) of the Securities Exchange Act of 1934; and 2. the information contained in such Form N-CSR fairly presents, in all material respects, the financial condition and results of operations of the Funds. Dated: July 25, 2003 /s/ Jennifer E. Spratley ------------------------ Jennifer E. Spratley A signed original of this written statement required by Section 906, or other document authenticating, acknowledging, or otherwise adopting the signature that appears in typed form within the electronic version of this written statement required by Section 906, has been provided to STI Classic Funds and will be retained by STI Classic Funds and furnished to the Securities and Exchange Commission or its staff upon request. -----END PRIVACY-ENHANCED MESSAGE-----