-----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, Bp9ULz4c1IuNqXJKAlWZgTn+8xOpc6yD2DcaPkepa0PLq34vSS6SwDqtBByngAE+ +vOSTWWfYXTUCqIBjuwG4A== 0000935069-04-000149.txt : 20040129 0000935069-04-000149.hdr.sgml : 20040129 20040129163808 ACCESSION NUMBER: 0000935069-04-000149 CONFORMED SUBMISSION TYPE: N-CSRS PUBLIC DOCUMENT COUNT: 5 CONFORMED PERIOD OF REPORT: 20031130 FILED AS OF DATE: 20040129 EFFECTIVENESS DATE: 20040129 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-CSRS SEC ACT: 1940 Act SEC FILE NUMBER: 811-06557 FILM NUMBER: 04552932 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-CSRS 1 stiinstmmcombined.txt STI CLASSIC INSTITUTIONAL MM SAR 113003 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 (Exact name of registrant as specified in charter) -------- 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, 2004 DATE OF REPORTING PERIOD: NOVEMBER 30, 2003 ITEM 1. REPORTS TO STOCKHOLDERS. SEMI-ANNUAL ................................................................................. FINANCIAL REPORT ................................................................................. STI CLASSIC FUNDS ................................................................................. A Family of Mutual Funds ................................................................................. BOND FUNDS CLASSIC INSTITUTIONAL HIGH QUALITY BOND FUND CLASSIC INSTITUTIONAL SHORT-TERM BOND FUND CLASSIC INSTITUTIONAL SUPER SHORT INCOME PLUS FUND CLASSIC INSTITUTIONAL TOTAL RETURN BOND FUND CLASSIC INSTITUTIONAL U.S. GOVERNMENT SECURITIES SUPER SHORT INCOME PLUS FUND MONEY MARKET FUNDS CLASSIC INSTITUTIONAL CASH MANAGEMENT MONEY MARKET FUND CLASSIC INSTITUTIONAL U.S. GOVERNMENT SECURITIES MONEY MARKET FUND CLASSIC INSTITUTIONAL U.S. TREASURY SECURITIES MONEY MARKET FUND November 30, 2003 [STI Classic Funds Logo Omitted] Dear Valued STI Classic Funds' Shareholder: Following a rough first quarter, investors enjoyed above-average annualized equity market returns, while the fixed-income markets experienced a modest decline. The stock market, as measured by the S&P 500 Index, rose 10.80% on a total return basis for the six months ended November 30, 2003, while bonds, as measured by the Lehman Aggregate Bond Index, slipped 1.03%. This continued broadly based, positive equity market performance was most welcome following the worst three-year market since the 1930s. We remain positive on the economy and the stock market looking forward, but we also see some factors emerging in 2004 that could generate short-term turbulence. The year got off to a rocky start amid a myriad of concerns including a sluggish economy, potential deflation, corporate malfeasance, and war with Iraq; any one of which would be sufficient to cause market turmoil. Layoffs, inventory reductions, and other cost cutting measures continued as corporations struggled to regain profitability. The S&P 500 Index fell 14.5% between November 30, 2002 and mid-March 2003. However, the consumer received new financial stimulus from another sharp drop in mortgage rates, an accommodative monetary policy from the Federal Reserve, and passage of a new tax cut package. This influx of funds, along with a competitive pricing environment, was enough to keep consumers in a buying mood despite a continued weak job market, and companies made significant strides in returning to profitability. By the fall of Baghdad in early April, it was evident that corporate earnings had turned the corner, and investors exited low-yielding bonds and money market funds in favor of stocks. Within the equity markets, small-cap and international stocks generated the strongest returns, reinforcing the value of having a diversified portfolio. The S&P SmallCap 600 Index rose 23.90%, and the MSCI EAFE Index returned 20.26% between May 31 and November 30, 2003. Within the large-cap equity arena, which includes the S&P 500 Index, the initial market rally favored lower quality companies with severely depressed prices; what some have referred to as a "dash to trash." Higher quality companies with stronger earnings growth trailed. Within the fixed-income markets, the improving economy benefited credit-sensitive sectors, such as the corporate bond market, on a relative basis, while the high-yield market in particular surged over 9%. Looking ahead, our expectations for the economy remain positive, highlighted by renewed job growth and further corporate capital investment. We remain positive on equities, but believe returns will be more challenging in the coming year. Thus, greater price sensitivity on individual issues is warranted. Deflation fears are abating, but the Federal Reserve will likely keep rates at or near the current four-decade low for a "considerable period", which should further support the expansion. Government spending will continue to be strong, and the decline in the dollar will improve the value of multinational foreign earnings. These factors, along with 2004 being a Presidential election year, should help sustain a favorable climate for corporate earnings and stock prices. However, over the near-term, the market advance could pause, consolidate, and digest the recent rally before moving higher. In the fixed-income markets, low inflation and a steady Federal Reserve policy should continue to support bond valuations over the near-term, but cyclical economic forces are likely to put pressure on inflation and lift bond yields from the current secular low. We believe our emphasis on fundamental research on each company security we purchase will provide the kind of strong relative performance that our clients have come to know and expect from the STI Classic family of mutual funds. We thank you for the confidence and trust you show by investing in our Funds, and we will continue to earn and validate that trust. Sincerely, /s/ Douglas S. Phillips Douglas S. Phillips, CFA Chief Investment Officer 1 STATEMENT OF NET ASSETS - -------------------------------------------------------------------------------- STI CLASSIC FUNDS NOVEMBER 30, 2003 CLASSIC INSTITUTIONAL HIGH QUALITY BOND FUND - -------------------------------------------------------------------------------- FACE AMOUNT (000) VALUE (000) - -------------------------------------------------------------------------------- U.S. TREASURY OBLIGATIONS (60.2%) U.S. Treasury Notes 5.875%, 11/15/05 $4,000 $ 4,297 5.625%, 05/15/08 2,800 3,084 4.375%, 08/15/12 2,000 2,028 4.250%, 08/15/13 2,000 1,992 3.250%, 08/15/07 4,940 5,004 3.125%, 10/15/08 3,000 2,972 1.625%, 09/30/05 4,000 3,979 ------- Total U.S. Treasury Obligations (Cost $23,383) 23,356 ------- U.S. GOVERNMENT AGENCY OBLIGATIONS (27.9%) FHLB 2.875%, 09/15/06 1,000 1,003 FHLMC 6.625%, 09/15/09 625 711 5.875%, 03/21/11 1,420 1,520 5.250%, 01/15/06 3,175 3,369 5.000%, 10/01/18 448 454 4.500%, 11/01/18 345 342 FNMA 6.500%, 11/01/33 515 537 6.260%, 05/01/12 316 346 5.725%, 03/01/12 240 255 5.500%, 05/02/06 1,825 1,946 GNMA 5.500%, 12/15/32 247 250 5.000%, 08/15/33 99 98 ------- Total U.S. Government Agency Obligations (Cost $10,860) 10,831 ------- - -------------------------------------------------------------------------------- FACE AMOUNT (000) VALUE (000) - -------------------------------------------------------------------------------- CORPORATE OBLIGATIONS (8.9%) BANKS (1.9%) Bank of America 4.750%, 10/15/06 $ 300 $ 315 Bank One 5.500%, 03/26/07 300 323 Wachovia 6.800%, 06/01/05 90 96 ------- 734 ------- COMPUTER SERVICES (0.7%) Computer Sciences 3.500%, 04/15/08 200 198 First Data 3.375%, 08/01/08 60 59 ------- 257 ------- FINANCE (1.1%) CIT Group 4.125%, 02/21/06 65 67 General Electric Capital 3.500%, 05/01/08 120 119 Household Finance 5.750%, 01/30/07 60 65 International Lease Finance 3.750%, 08/01/07 90 91 Verizon Global Funding 7.250%, 12/01/10 80 91 ------- 433 ------- FOOD, BEVERAGE & TOBACCO (0.2%) Coca-Cola Enterprises 5.250%, 05/15/07 65 69 ------- INSURANCE (0.5%) Allstate 7.875%, 05/01/05 200 216 ------- 2 - -------------------------------------------------------------------------------- (UNAUDITED) - -------------------------------------------------------------------------------- FACE AMOUNT (000)/SHARES VALUE (000) - -------------------------------------------------------------------------------- INVESTMENT BANKERS/BROKER DEALERS (3.2%) Bear Stearns 5.700%, 01/15/07 $ 300 $ 323 Citigroup 6.750%, 12/01/05 200 217 Goldman Sachs Group 4.750%, 07/15/13 615 594 JP Morgan Chase 5.250%, 05/30/07 60 63 Lehman Brothers Holdings 4.000%, 01/22/08 60 61 ------- 1,258 ------- PETROLEUM & FUEL PRODUCTS (0.3%) Conoco 8.500%, 05/25/05 100 109 ------- UTILITIES (1.0%) Alabama Power 3.125%, 05/01/08 165 162 Carolina Power and Light 6.500%, 07/15/12 100 110 PacifiCorp 6.900%, 11/15/11 100 114 ------- 386 ------- Total Corporate Obligations (Cost $3,479) 3,462 ------- CASH EQUIVALENTS (3.6%) Federated Prime Obligation Money Market Fund 350,644 351 Federated Prime Value Money Market Fund 1,038,830 1,039 ------- Total Cash Equivalents (Cost $1,390) 1,390 ------- - -------------------------------------------------------------------------------- FACE AMOUNT (000) VALUE (000) - -------------------------------------------------------------------------------- REPURCHASE AGREEMENT (0.3%) Merrill Lynch 0.995%, dated 11/28/03, to be repurchased on 12/01/03, repurchase price $103,188 (collateralized by FNMA Obligations: total market value $109,913) (D) $103 $ 103 ------- Total Repurchase Agreement (Cost $103) 103 ------- Total Investments (100.9%) (Cost $39,215) 39,142 ------- OTHER ASSETS AND LIABILITIES (-0.9%) Investment Advisory Fees Payable (6) Administration Fees Payable (1) Other Assets and Liabilities, Net (335) ------- Total Other Assets and Liabilities (342) ------- NET ASSETS: Paid in Capital -- Institutional Shares (unlimited authorization -- no par value) based on 1,712,256 outstanding shares of beneficial interest 17,120 Paid in Capital -- T Shares (unlimited authorization -- no par value) based on 2,172,730 outstanding shares of beneficial interest 21,771 Accumulated net realized loss on investments (18) Net unrealized depreciation on investments (73) ------- Total Net Assets (100.0%) $38,800 ======= Net Asset Value, Offering and Redemption Price Per Share -- Institutional Shares ($17,102,038 / 1,712,256 shares) $9.99 ======= Net Asset Value, Offering and Redemption Price Per Share -- T Shares ($21,698,263 / 2,172,730 shares) $9.99 ======= THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS. FOR DESCRIPTIONS OF ABBREVIATIONS AND FOOTNOTES, PLEASE SEE PAGE 28. 3 STATEMENT OF NET ASSETS - -------------------------------------------------------------------------------- STI CLASSIC FUNDS NOVEMBER 30, 2003 CLASSIC INSTITUTIONAL SHORT-TERM BOND FUND - -------------------------------------------------------------------------------- FACE AMOUNT (000) VALUE (000) - -------------------------------------------------------------------------------- U.S. TREASURY OBLIGATIONS (11.2%) U.S. Treasury Notes 6.500%, 05/15/05 $ 600 $ 641 5.750%, 11/15/05 500 536 3.500%, 11/15/06 525 540 2.125%, 08/31/04 100 101 2.000%, 11/30/04 600 603 ------- Total U.S. Treasury Obligations (Cost $2,413) 2,421 ------- U.S. GOVERNMENT AGENCY OBLIGATIONS (38.4%) FHLB 3.875%, 12/15/04 300 307 3.250%, 08/15/05 450 459 FHLB, Ser 273 5.625%, 05/14/04 700 714 FHLB, Ser 322 3.875%, 03/15/05 625 643 FHLB, Ser 392 2.500%, 03/15/06 650 651 FHLB, Ser DQ07 2.625%, 05/15/07 100 98 FHLMC 5.500%, 07/15/06 275 295 5.000%, 05/15/11 185 189 4.250%, 06/15/05 375 388 4.000%, 07/01/08 283 287 3.362%, 07/01/33 288 291 3.250%, 11/15/04 500 508 3.000%, 07/15/04 425 430 2.250%, 07/06/05 200 200 FHLMC, MTN 2.050%, 07/14/06 425 420 FNMA 4.000%, 11/25/16 275 279 3.500%, 09/15/04 500 508 3.202%, 05/01/33 339 338 3.175%, 09/01/33 301 311 3.153%, 10/01/33 153 158 1.875%, 12/15/04 500 502 - -------------------------------------------------------------------------------- FACE AMOUNT (000) VALUE (000) - -------------------------------------------------------------------------------- U.S. GOVERNMENT AGENCY OBLIGATIONS--CONTINUED SLMA 1.340%, 09/15/06 $ 330 $ 330 ------- Total U.S. Government Agency Obligations (Cost $8,288) 8,306 ------- CORPORATE OBLIGATIONS (41.8%) AUTOMOTIVE (1.2%) DaimlerChrysler 7.750%, 06/15/05 250 269 ------- BANKS (6.6%) Bank One 5.500%, 03/26/07 280 301 Bank of America 6.625%, 06/15/04 300 309 6.500%, 03/15/06 150 163 Citibank 4.100%, 12/07/06 300 307 Wachovia 6.800%, 06/01/05 100 107 Wells Fargo 6.625%, 07/15/04 225 232 ------- 1,419 ------- CABLE (0.8%) Comcast Cablevision 8.375%, 05/01/07 85 98 Univision Communications 2.875%, 10/15/06 85 84 ------- 182 ------- CAPITAL GOODS (0.5%) Masco 6.750%, 03/15/06 100 109 ------- FINANCE (9.1%) American General 6.750%, 06/15/05 250 268 Boeing Capital (E) 5.650%, 05/15/06 200 213 4 - -------------------------------------------------------------------------------- (UNAUDITED) - -------------------------------------------------------------------------------- FACE AMOUNT (000) VALUE (000) - -------------------------------------------------------------------------------- FINANCE--CONTINUED CIT Group 4.125%, 02/21/06 $ 300 $ 309 Countrywide Home Loan (E) 5.500%, 08/01/06 200 212 Diageo Capital PLC 3.375%, 03/20/08 200 198 Ford Motor Credit 7.500%, 03/15/05 100 105 6.875%, 02/01/06 100 105 GMAC 6.750%, 01/15/06 50 53 GMAC, MTN 6.380%, 01/30/04 100 101 General Electric Capital, Ser A, MTN 2.850%, 01/30/06 300 303 JP Morgan Chase (E) 5.250%, 05/30/07 100 106 ------- 1,973 ------- FOOD, BEVERAGE & TOBACCO (1.0%) Conagra Foods 7.500%, 09/15/05 90 98 Safeway 6.150%, 03/01/06 100 107 ------- 205 ------- INSURANCE (2.6%) Allstate 7.875%, 05/01/05 260 281 Liberty Media (E) 3.500%, 09/25/06 100 100 MetLife 3.911%, 05/15/05 115 118 Safeco 4.200%, 02/01/08 65 65 ------- 564 ------- - -------------------------------------------------------------------------------- FACE AMOUNT (000) VALUE (000) - -------------------------------------------------------------------------------- INVESTMENT BANKERS/BROKER DEALERS (10.2%) Bear Stearns 5.700%, 01/15/07 $ 310 $ 334 Citigroup 6.750%, 12/01/05 275 298 Credit Suisse First Boston (E) 5.875%, 08/01/06 250 269 Goldman Sachs Group 7.625%, 08/17/05 250 273 Lehman Brothers Holdings 7.750%, 01/15/05 225 241 Merrill Lynch, Ser B, MTN 3.375%, 09/14/07 295 296 Morgan Stanley 7.750%, 06/15/05 225 244 Paine Webber Group 6.375%, 05/15/04 250 256 ------- 2,211 ------- MULTIMEDIA (1.3%) Viacom 7.750%, 06/01/05 250 270 ------- PETROLEUM & FUEL PRODUCTS (2.8%) Amerada Hess 5.900%, 08/15/06 100 107 Anadarko Petroleum 3.250%, 05/01/08 115 112 Kerr-McGee 5.375%, 04/15/05 100 104 Phillips Petroleum 8.500%, 05/25/05 250 273 ------- 596 ------- REAL ESTATE (0.5%) EOP Operating LP 8.375%, 03/15/06 95 106 ------- RETAIL (0.9%) Kroger 7.375%, 03/01/05 100 106 5 STATEMENT OF NET ASSETS - -------------------------------------------------------------------------------- STI CLASSIC FUNDS NOVEMBER 30, 2003 CLASSIC INSTITUTIONAL SHORT-TERM BOND FUND - -------------------------------------------------------------------------------- FACE AMOUNT (000) VALUE (000) - -------------------------------------------------------------------------------- RETAIL--CONTINUED Nordstrom 8.950%, 10/15/05 $ 85 $ 94 ------- 200 ------- TELEPHONES & TELECOMMUNICATIONS (2.5%) British Telecom PLC 7.875%, 12/15/05 250 275 Deutsche Telekom 8.250%, 06/15/05 50 54 Vodafone Group PLC (A) 7.625%, 02/15/05 200 214 ------- 543 ------- UTILITIES (1.8%) Alabama Power, Ser X 3.125%, 05/01/08 50 49 National Rural Utilities 3.000%, 02/15/06 225 226 PacifiCorp 6.750%, 04/01/05 100 106 ------- 381 ------- Total Corporate Obligations (Cost $8,968) 9,028 ------- ASSET-BACKED SECURITIES (7.0%) Bank One Issuance Trust, Ser 2002-A4, Cl A4 2.940%, 06/16/08 500 506 Capital Auto Receivables Asset Trust, Series 2002-4, Cl A4 2.640%, 03/17/08 500 501 Honda Automobile Receivables Owner Trust, Ser 2002-3, Cl A4 3.610%, 12/18/07 500 512 ------- Total Asset-Backed Securities (Cost $1,500) 1,519 ------- - -------------------------------------------------------------------------------- SHARES VALUE (000) - -------------------------------------------------------------------------------- SHORT-TERM INVESTMENT (4.2%) Boston Global Investment Trust Enhanced Portfolio (F) 913,996 $ 914 ------- Total Short-Term Investment (Cost $914) 914 ------- CASH EQUIVALENT (0.7%) Federated Prime Value Money Market Fund 154,535 155 ------- Total Cash Equivalent (Cost $155) 155 ------- Total Investments (103.3%) (Cost $22,238) 22,343 ------- OTHER ASSETS AND LIABILITIES (-3.3%) Payable Upon Return of Securities Loaned (914) Investment Advisory Fees Payable (6) Administration Fees Payable (1) Other Assets and Liabilities, Net 208 ------- Total Other Assets and Liabilities (713) ------- NET ASSETS: Paid in Capital -- Institutional Shares (unlimited authorization -- no par value) based on 2,131,852 outstanding shares of beneficial interest 21,366 Distributions in excess of net investment income (4) Accumulated net realized gain on investments 163 Net unrealized appreciation on investments 105 ------- Total Net Assets (100.0%) $21,630 ======= Net Asset Value, Offering and Redemption Price Per Share -- Institutional Shares ($21,629,580 / 2,131,852 shares) $10.15 ======= THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS. FOR DESCRIPTIONS OF ABBREVIATIONS AND FOOTNOTES, PLEASE SEE PAGE 28. 6 - -------------------------------------------------------------------------------- (UNAUDITED) CLASSIC INSTITUTIONAL SUPER SHORT INCOME PLUS FUND - -------------------------------------------------------------------------------- FACE AMOUNT (000) VALUE (000) - -------------------------------------------------------------------------------- U.S. GOVERNMENT AGENCY OBLIGATIONS (13.6%) FHLB 4.875%, 05/14/04 $4,000 $ 4,067 1.750%, 06/17/05 2,625 2,617 FHLMC 5.000%, 01/15/04 5,000 5,024 2.500%, 04/21/06 1,975 1,977 1.125%, 11/07/05 5,500 5,500 FHLMC Discount Note (C) 1.073%, 01/08/04 5,375 5,369 FNMA 5.500%, 02/15/06 1,000 1,069 5.125%, 02/13/04 5,000 5,041 2.750%, 12/16/05 1,500 1,501 2.750%, 08/11/06 1,175 1,168 2.625%, 11/15/06 1,000 994 FNMA Discount Note (C) 1.070%, 02/11/04 5,375 5,364 SLMA (B) 1.396%, 08/27/04 1,400 1,404 -------- Total U.S. Government Agency Obligations (Cost $41,113) 41,095 -------- U.S. GOVERNMENT MORTGAGE-BACKED OBLIGATIONS (14.7%) FHLMC, Ser 1B1002 3.688%, 07/01/33 1,899 1,903 FHLMC, Ser 1520 Cl H 6.250%, 11/15/07 857 872 FHLMC, Ser 1629 Cl HA 3.500%, 12/15/21 201 203 FHLMC, Ser 2485 Cl AF 5.500%, 12/15/15 351 359 FHLMC, Ser 2485 Cl AH 5.500%, 12/15/13 155 156 FHLMC, Ser 2497 Cl NM 4.500%, 05/15/14 263 267 FHLMC, Ser 2508 Cl MF 5.000%, 04/15/13 452 461 - -------------------------------------------------------------------------------- FACE AMOUNT (000) VALUE (000) - -------------------------------------------------------------------------------- U.S. GOVERNMENT MORTGAGE-BACKED OBLIGATIONS--CONTINUED FHLMC, Ser 2542 Cl AG 4.000%, 11/15/11 $2,039 $ 2,065 FHLMC, Ser 2542 Cl DL 4.500%, 05/15/11 333 335 FHLMC, Ser 2558 Cl BA 5.000%, 05/15/11 713 725 FHLMC, Ser 2572 Cl LB 5.000%, 04/15/16 1,000 1,027 FHLMC, Ser 2595 Cl AB 5.000%, 02/15/14 1,898 1,948 FHLMC, Ser 2685, Cl NA 4.000%, 11/15/06 2,842 2,879 FHLMC, Ser 780675 3.362%, 07/01/33 1,124 1,133 FHLMC, Ser 90818 4.000%, 06/01/08 2,063 2,090 FHLMC, Ser M80812 4.500%, 04/01/10 2,088 2,115 FHLMC, Ser M90803 4.500%, 03/01/08 1,706 1,746 FHLMC, Ser M90814 4.000%, 05/01/08 2,318 2,348 FNMA, Ser 1993-197 6.000%, 07/25/08 2,323 2,383 FNMA, Ser 2003-9 Cl UA 4.000%, 11/25/16 1,500 1,520 FNMA, Ser 555817 3.175%, 09/01/33 3,056 3,155 FNMA, Ser 555844 3.153%, 10/01/33 1,740 1,793 FNMA, Ser 635082 5.216%, 05/01/32 1,341 1,357 FNMA, Ser 688988 3.202%, 05/01/33 2,710 2,707 FNMA, Ser 692203 4.287%, 03/01/33 2,766 2,777 7 STATEMENT OF NET ASSETS - -------------------------------------------------------------------------------- STI CLASSIC FUNDS NOVEMBER 30, 2003 CLASSIC INSTITUTIONAL SUPER SHORT INCOME PLUS FUND - -------------------------------------------------------------------------------- FACE AMOUNT (000) VALUE (000) - -------------------------------------------------------------------------------- U.S. GOVERNMENT MORTGAGE-BACKED OBLIGATIONS--CONTINUED FNMA, Ser 701045 3.534%, 04/01/33 $1,830 $ 1,850 FNMA, Ser 709050 3.799%, 06/01/33 2,388 2,389 FNMA, Ser 722615 3.712%, 08/01/33 1,898 1,911 -------- Total U.S. Government Mortgage-Backed Obligations (Cost $44,637) 44,474 -------- CORPORATE OBLIGATIONS (31.1%) AUTOMOTIVE (0.4%) DaimlerChrysler (E) 6.400%, 05/15/06 1,125 1,198 -------- BANKS (2.5%) Bank of America 6.625%, 06/15/04 2,000 2,057 Bank One (E) 7.625%, 08/01/05 1,000 1,089 National City Bank 7.200%, 05/15/05 750 804 US Bancorp 2.750%, 03/30/06 1,000 1,005 Wachovia 6.950%, 11/01/04 500 525 Wells Fargo 6.625%, 07/15/04 1,000 1,031 1.240%, 03/03/06 (B) 1,000 1,003 -------- 7,514 -------- BUILDING & CONSTRUCTION (0.4%) Masco 6.000%, 05/03/04 1,250 1,272 -------- - -------------------------------------------------------------------------------- FACE AMOUNT (000) VALUE (000) - -------------------------------------------------------------------------------- CABLE (1.1%) Cox Communications 7.500%, 08/15/04 $1,000 $ 1,037 TCI Communications 8.650%, 09/15/04 800 848 6.875%, 02/15/06 500 541 Univision Communications 2.875%, 10/15/06 875 865 -------- 3,291 -------- CHEMICALS-DIVERSIFIED (0.3%) PPG Industries 6.750%, 08/15/04 1,000 1,028 -------- ELECTRICAL SERVICES (2.0%) Alabama Power 4.875%, 09/01/04 500 513 2.800%, 12/01/06 500 498 1.260%, 12/29/03 (B) 1,500 1,500 Con Edison 7.625%, 03/01/04 1,250 1,269 Progress Energy 6.550%, 03/01/04 825 835 Virginia Electric & Power 5.750%, 03/31/06 1,250 1,333 -------- 5,948 -------- FINANCE (8.2%) Caterpillar Financial Service 2.650%, 01/30/06 500 501 CIT Group 4.125%, 02/21/06 1,000 1,030 1.400%, 11/04/05 (B) 2,500 2,500 Citigroup 6.750%, 12/01/05 1,250 1,356 Countrywide Home Loan 6.850%, 06/15/04 1,000 1,028 5.500%, 08/01/06 (E) 750 797 8 - -------------------------------------------------------------------------------- (UNAUDITED) - -------------------------------------------------------------------------------- FACE AMOUNT (000) VALUE (000) - -------------------------------------------------------------------------------- FINANCE--CONTINUED Ford Motor Credit 7.500%, 03/15/05 $ 750 $ 790 5.750%, 02/23/04 1,500 1,515 GMAC 7.500%, 07/15/05 (E) 750 802 6.850%, 06/17/04 500 514 6.380%, 01/30/04 500 504 General Electric Capital 4.250%, 01/28/05 1,225 1,259 1.265%, 03/15/05 (B) 2,000 2,003 John Deere Capital 4.125%, 12/05/03 1,000 1,000 SLM 1.361%, 01/25/06 2,000 2,005 1.340%, 09/15/06 (B) 2,000 2,002 Textron Financial 5.950%, 03/15/04 750 759 2.750%, 06/01/06 635 629 Washington Mutual Financial 8.250%, 06/15/05 600 654 5.850%, 01/27/04 (E) 3,000 3,023 -------- 24,671 -------- FOOD, BEVERAGE & TOBACCO (1.4%) ConAgra Foods 7.500%, 09/15/05 825 897 Diageo Capital PLC 6.625%, 06/24/04 795 819 6.125%, 08/15/05 500 531 Kellogg 4.875%, 10/15/05 750 786 Safeway 6.150%, 03/01/06 750 801 Unilever Capital (E) 6.875%, 11/01/05 500 543 -------- 4,377 -------- - -------------------------------------------------------------------------------- FACE AMOUNT (000) VALUE (000) - -------------------------------------------------------------------------------- FORESTRY (0.4%) Weyerhaeuser 5.500%, 03/15/05 $1,250 $ 1,299 -------- GOVERNMENT-REGIONAL (0.4%) Province of Ontario 7.000%, 08/04/05 1,000 1,079 -------- INDUSTRIAL (0.5%) IBM, MTN 5.250%, 12/01/03 450 450 Pitney Bowes 5.500%, 04/15/04 1,125 1,142 -------- 1,592 -------- INSURANCE (2.2%) Allstate 7.875%, 05/01/05 750 810 ASIF Global (A)(B) 1.320%, 05/30/06 2,500 2,505 MetLife Global (A)(B) 1.320%, 08/28/06 3,250 3,252 -------- 6,567 -------- INVESTMENT BANKERS/BROKER DEALERS (4.4%) Bear Stearns 3.000%, 03/30/06 1,500 1,513 Credit Suisse (B) 1.430%, 02/22/05 2,000 2,004 JP Morgan Chase 5.625%, 08/15/06 1,000 1,072 Lehman Brothers Holdings 7.750%, 01/15/05 750 804 6.625%, 04/01/04 875 890 6.250%, 05/15/06 1,000 1,082 9 STATEMENT OF NET ASSETS - -------------------------------------------------------------------------------- STI CLASSIC FUNDS NOVEMBER 30, 2003 CLASSIC INSTITUTIONAL SUPER SHORT INCOME PLUS FUND - -------------------------------------------------------------------------------- FACE AMOUNT (000) VALUE (000) - -------------------------------------------------------------------------------- INVESTMENT BANKERS/BROKER DEALERS--CONTINUED Merrill Lynch 5.350%, 06/15/04 $1,000 $ 1,022 Morgan Stanley 7.750%, 06/15/05 (E) 750 814 5.625%, 01/20/04 2,625 2,640 Paine Webber Group 6.375%, 05/15/04 1,250 1,279 -------- 13,120 -------- METALS & MINING (0.2%) 3M 4.250%, 09/01/04 500 511 -------- MULTIMEDIA (1.1%) Time Warner 6.125%, 04/15/06 750 801 Viacom 7.750%, 06/01/05 1,250 1,352 Walt Disney 5.125%, 12/15/03 1,175 1,176 -------- 3,329 -------- PETROLEUM & FUEL PRODUCTS (1.6%) Amerada Hess 5.900%, 08/15/06 925 991 Conoco 8.500%, 05/25/05 750 819 5.900%, 04/15/04 2,000 2,034 Texaco Capital 6.000%, 06/15/05 1,000 1,062 -------- 4,906 -------- REAL ESTATE (0.8%) EOP Operating LP 6.500%, 06/15/04 1,250 1,282 Simon Property Group LP 6.750%, 02/09/04 1,225 1,237 -------- 2,519 -------- - -------------------------------------------------------------------------------- FACE AMOUNT (000) VALUE (000) - -------------------------------------------------------------------------------- RETAIL (1.2%) Kroger 7.375%, 03/01/05 $1,000 $ 1,062 Target 7.500%, 02/15/05 675 720 Wal-Mart Stores (B) 1.128%, 02/22/05 1,875 1,875 -------- 3,657 -------- TELEPHONES & TELECOMMUNICATIONS (1.6%) Bellsouth Telecommunications 6.500%, 06/15/05 700 745 British Telecom 7.875%, 12/15/05 750 826 GTE North 6.000%, 01/15/04 750 754 Verizon Global Funding (E) 6.750%, 12/01/05 1,250 1,353 Vodafone Group PLC (A) 7.625%, 02/15/05 1,000 1,068 -------- 4,746 -------- TRANSPORTATION (0.4%) FedEx 6.625%, 02/12/04 650 656 Union Pacific 6.400%, 02/01/06 500 536 -------- 1,192 -------- Total Corporate Obligations (Cost $93,552) 93,816 -------- COMMERCIAL PAPER (18.1%) FINANCE (9.5%) Barclays US Funding (C) 1.083%, 01/12/04 4,000 3,995 Goldman Sachs (C) 1.063%, 12/08/03 3,750 3,749 Merrill Lynch (C) 1.030%, 12/02/03 5,000 5,000 10 - -------------------------------------------------------------------------------- (UNAUDITED) - -------------------------------------------------------------------------------- FACE AMOUNT (000) VALUE (000) - -------------------------------------------------------------------------------- FINANCE--CONTINUED MetLife Funding (C) 1.083%, 01/14/04 $4,000 $ 3,995 Paccar Financial (C) 1.070%, 02/12/04 4,125 4,116 Rabobank USA Finance (C) 1.048%, 12/16/03 3,875 3,873 Siemans Capital (C) 1.043%, 12/30/03 3,875 3,872 -------- 28,600 -------- GOVERNMENT-REGIONAL (1.3%) Province de Quebec (C) 1.030%, 12/19/03 4,000 3,998 -------- INDUSTRIAL (6.0%) BMW US Capital (C) 1.030%, 12/01/03 5,000 5,000 EI du Pont de Nemours (C) 1.073%, 01/27/04 4,000 3,993 Merck (C) 1.030%, 12/04/03 4,000 4,000 New York Times (C) 1.040%, 12/05/03 5,000 4,999 -------- 17,992 -------- SPECIAL PURPOSE ENTITY (1.3%) Ciesco LLC (C) 1.088%, 01/15/04 4,000 3,994 -------- Total Commercial Paper (Cost $54,585) 54,584 -------- - -------------------------------------------------------------------------------- FACE AMOUNT (000) VALUE (000) - -------------------------------------------------------------------------------- ASSET-BACKED SECURITIES (15.8%) American Express Credit Account, Master Trust Ser 1999-1 5.600%, 11/15/06 $4,125 $ 4,193 Bank One Issuance Trust, Ser 2003-A5, Cl A5 1.170%, 02/17/09 2,500 2,501 BMW Vehicle Owner Trust, Ser 2003-A, Cl A2 1.450%, 11/25/05 948 949 Capital Auto Receivables Asset Trust, Ser 2001-2 Cl A4 5.000%, 12/15/06 4,375 4,462 Capital Auto Receivables Asset Trust, Ser 2002-5, Cl A2B 1.710%, 01/18/05 406 406 Capital Auto Receivables Asset Trust, Ser 2003-1, Cl A2A 2.270%, 01/17/06 575 579 CIT Equipment Collateral, Ser 2003-VT1, Cl A3A 1.250%, 04/20/07 (B) 2,000 2,002 CIT Group Home Loan Equity Trust, Ser 2003-1, Cl A1 1.210%, 08/20/18 (B) 495 495 Citibank Credit Card Issuance Trust, Ser 2003-A2 Cl A2 2.700%, 01/15/08 1,850 1,859 Citibank Credit Card Master Trust I, Ser 1998-9, Cl A 5.300%, 01/09/06 2,000 2,009 Citibank Credit Card Master Trust, Ser 1999-7, Cl A 6.650%, 11/15/06 500 524 11 STATEMENT OF NET ASSETS - -------------------------------------------------------------------------------- STI CLASSIC FUNDS NOVEMBER 30, 2003 CLASSIC INSTITUTIONAL SUPER SHORT INCOME PLUS FUND - -------------------------------------------------------------------------------- FACE AMOUNT (000) VALUE (000) - -------------------------------------------------------------------------------- ASSET-BACKED SECURITIES--CONTINUED DaimlerChrysler Auto Trust, Ser 2001-D, Cl A4 3.780%, 02/06/07 $ 500 $ 512 DaimlerChrysler Master Owner Trust, Ser 2003-A, Cl A 1.170%, 02/15/08 (B) 2,575 2,576 Discover Card Master Trust, Ser 2001-4, Cl A 1.210%, 10/16/06 (B) 725 725 Ford Credit Owner Trust, Ser 2001-C, Cl A4 4.830%, 02/15/05 525 528 Ford Credit Owner Trust, Ser 2003-B, Cl A2A 1.400%, 06/15/05 2,362 2,364 GMAC Mortgage Corporation Loan Trust, Ser 2003-HE1, Cl A1 1.210%, 04/25/33 (B) 1,000 1,000 Honda Auto Receivables Owner Trust, Ser 2003-2, Cl A2 1.340%, 12/21/05 2,500 2,500 Honda Auto Receivables Owners Trust, Ser 2001-3, Cl A3 3.400%, 02/18/05 352 352 MBNA Master Credit Card Trust, Ser 2000-C, Cl A 1.280%, 07/15/07 (B) 2,500 2,503 Navistar Financial Corporate Owner Trust, Ser 2002-B, Cl A3A 1.370%, 03/15/07 3,000 2,999 Nissan Master Owner Trust Receivables, Ser 2003-A, Cl A1 1.180%, 09/15/08 (B) 2,500 2,500 - -------------------------------------------------------------------------------- FACE AMOUNT (000)/SHARES VALUE (000) - -------------------------------------------------------------------------------- ASSET-BACKED SECURITIES--CONTINUED Regions Auto Receivables Trust, Ser 2003-2, Cl A1 1.164%, 11/15/04 (B) $2,500 $ 2,500 Residential Asset Mortgage Products, Ser 2003-RS2, Class A-I1 1.209%, 03/25/22 (B) 1,989 1,989 SLM Student Loan Trust, Ser 2003-11, Cl A 1.163%, 09/15/09 (B) 4,000 4,000 Toyota Auto Receivables Owner Trust, Ser 2002-C, Cl A2 1.140%, 03/15/05 (B) 476 475 Washington Mutual, Ser 2003-AR5, Cl A1 1.593%, 06/25/33 85 85 -------- Total Asset-Backed Securities (Cost $47,631) 47,587 -------- SHORT-TERM INVESTMENT (1.4%) Boston Global Investment Trust -- Enhanced Portfolio (F) 4,266,085 4,266 -------- Total Short-Term Investment (Cost $4,266) 4,266 -------- CASH EQUIVALENTS (1.8%) Dreyfus Government Cash Management Fund 2,750,000 2,750 Federated Prime Value Money Market Fund 2,750,000 2,750 -------- Total Cash Equivalents (Cost $5,500) 5,500 -------- 12 - -------------------------------------------------------------------------------- (UNAUDITED) - -------------------------------------------------------------------------------- FACE AMOUNT (000) VALUE (000) - -------------------------------------------------------------------------------- REPURCHASE AGREEMENTS (6.3%) Merrill Lynch 0.995%, dated 11/28/03, to be repurchased on 12/01/03, repurchase price $9,746,953 (collateralized by FNMA Obligations: total market value $9,943,953) (D) $9,746 $ 9,746 UBS Paine Webber 0.995%, dated 11/28/03, to be repurchased on 12/01/03, repurchase price of $9,170,128 (collateralized by FNMA Obligations: total market value $9,356,974) (D) 9,169 9,169 -------- Total Repurchase Agreements (Cost $18,915) 18,915 -------- Total Investments (102.8%) (Cost $310,199) 310,237 -------- OTHER ASSETS AND LIABILITIES (-2.8%) Payable Upon Return of Securities Loaned (4,266) Investment Advisory Fees Payable (46) Administration Fees Payable (16) Shareholder Servicing Fees Payable (23) Custodian Fees Payable (5) Other Assets and Liabilities, Net (4,041) -------- Total Other Assets and Liabilities (8,397) -------- - -------------------------------------------------------------------------------- VALUE (000) - -------------------------------------------------------------------------------- NET ASSETS: Paid in Capital -- Institutional Shares (unlimited authorization -- no par value) based on 78,139,725 outstanding shares of beneficial interest $157,223 Paid in Capital -- T Shares (unlimited authorization -- no par value) based on 72,344,639 outstanding shares of beneficial interest 145,191 Distributions in excess of net investment income (218) Accumulated net realized loss on investments (394) Net unrealized appreciation on investments 38 -------- Total Net Assets (100.0%) $301,840 ======== Net Asset Value, Offering and Redemption Price Per Share -- Institutional Shares ($157,091,074 / 78,139,725 shares) $2.01 ======== Net Asset Value, Offering and Redemption Price Per Share -- T Shares ($144,748,914 / 72,344,639 shares) $2.00 ======== THE FUND INVESTS IN SECURITIES WHOSE VALUE IS DERIVED FROM AN UNDERLYING POOL OF MORTGAGES OR CONSUMER LOANS. PREPAYMENT OF THESE LOANS SHORTENS THE STATED MATURITY OF THESE RESPECTIVE OBLIGATIONS AND MAY RESULT IN A LOSS OF PREMIUM, IF ANY HAS BEEN PAID. ESTIMATES OF SUCH PREPAYMENTS ARE USED TO CALCULATE EXPECTED MATURITY DATES AND THE FUND'S AVERAGE DURATION. THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS. FOR DESCRIPTIONS OF ABBREVIATIONS AND FOOTNOTES, PLEASE SEE PAGE 28. 13 STATEMENT OF NET ASSETS - -------------------------------------------------------------------------------- STI CLASSIC FUNDS NOVEMBER 30, 2003 CLASSIC INSTITUTIONAL TOTAL RETURN BOND FUND - -------------------------------------------------------------------------------- FACE AMOUNT (000) VALUE (000) - -------------------------------------------------------------------------------- U.S. TREASURY OBLIGATIONS (17.7%) U.S. Treasury Bond 7.500%, 11/15/16 $ 300 $ 379 6.250%, 08/15/23 350 395 5.375%, 02/15/31 540 560 U.S. Treasury Note 4.375%, 08/15/12 250 254 3.250%, 08/15/07 150 152 ------- Total U.S. Treasury Obligations (Cost $1,738) 1,740 ------- U.S. GOVERNMENT AGENCY OBLIGATIONS (39.0%) FHLB 2.875%, 08/15/06 2,300 2,308 FHLMC 5.000%, 11/01/18 500 506 FNMA 6.000%, 11/01/33 500 514 5.500%, 10/01/23 495 502 ------- Total U.S. Government Agency Obligations (Cost $3,855) 3,830 ------- CORPORATE OBLIGATIONS (23.0%) BANKS (3.2%) Bank of America 4.750%, 10/15/06 100 105 Wachovia 6.800%, 06/01/05 100 107 Wells Fargo 3.500%, 04/04/08 100 100 ------- 312 ------- COMPUTER SERVICES (0.7%) Computer Sciences 3.500%, 04/15/08 70 69 ------- - -------------------------------------------------------------------------------- FACE AMOUNT (000) VALUE (000) - -------------------------------------------------------------------------------- FINANCE (5.5%) CIT Group 4.125%, 02/21/06 $ 100 $ 103 General Electric Capital 3.500%, 05/01/08 150 149 Household Finance 5.750%, 01/30/07 65 70 International Lease Finance 3.750%, 08/01/07 100 101 Verizon Global Funding 7.250%, 12/01/10 100 114 ------- 537 ------- FOOD, BEVERAGE & TOBACCO (0.3%) Kraft Foods 5.250%, 10/01/13 35 35 ------- FORESTRY (1.4%) Millar Western Forest (A) 7.750%, 11/15/13 100 102 Weyerhaeuser 7.950%, 03/15/25 35 39 ------- 141 ------- GOVERNMENT-REGIONAL (2.3%) Ontario Global Bond 6.000%, 02/21/06 100 108 Province of Quebec 7.125%, 02/09/24 100 117 ------- 225 ------- INSURANCE (1.1%) Allstate 7.875%, 05/01/05 100 108 ------- INVESTMENT BANKERS/BROKER DEALERS (3.9%) Bear Stearns 5.700%, 01/15/07 100 108 Goldman Sachs Group 4.750%, 07/15/13 100 96 14 - -------------------------------------------------------------------------------- (UNAUDITED) - -------------------------------------------------------------------------------- FACE AMOUNT (000) VALUE (000) - -------------------------------------------------------------------------------- INVESTMENT BANKERS/BROKER DEALERS--CONTINUED JP Morgan Chase 5.250%, 05/30/07 $ 100 $ 106 Lehman Brothers Holdings 4.000%, 01/22/08 70 71 ------- 381 ------- MULTIMEDIA (0.7%) Time Warner 6.125%, 04/15/06 30 32 Viacom 7.875%, 09/01/23 35 41 ------- 73 ------- PETROLEUM & FUEL PRODUCTS (1.5%) Amerada Hess 7.125%, 03/15/33 30 30 Conoco 6.950%, 04/15/29 70 79 Petro Mexicanos 9.250%, 03/30/18 30 35 ------- 144 ------- TRANSPORTATION (1.7%) Norfolk Southern 7.800%, 05/15/27 30 36 OMI (A) 7.625%, 12/01/08 100 100 Union Pacific 5.750%, 10/15/07 30 32 ------- 168 ------- - -------------------------------------------------------------------------------- FACE AMOUNT (000)/SHARES VALUE (000) - -------------------------------------------------------------------------------- UTILITIES (0.7%) Carolina Power and Light 6.500%, 07/15/12 $ 30 $ 33 PacifiCorp 6.900%, 11/15/11 30 34 ------- 67 ------- Total Corporate Obligations (Cost $2,266) 2,260 ------- EXCHANGE TRADED FUNDS (8.9%) iShares GS$ InvesTop Corporate Bond 4,050 446 iShares Lehman Aggregate Bond 4,250 432 ------- Total Exchange Traded Funds (Cost $885) 878 ------- CASH EQUIVALENT (5.1%) Federated Prime Value Money Market Fund 506,000 506 ------- Total Cash Equivalent (Cost $506) 506 ------- REPURCHASE AGREEMENT (10.3%) Merrill Lynch 0.995%, dated 11/28/03, to be repurchased on 12/01/03, repurchase price $1,010,040 (collateralized by U.S. Government Obligations: total market value $1,034,182) (D) $1,010 1,010 ------- Total Repurchase Agreement (Cost $1,010) 1,010 ------- Total Investments (104.0%) (Cost $10,260) 10,224 ------- 15 STATEMENT OF NET ASSETS - -------------------------------------------------------------------------------- STI CLASSIC FUNDS NOVEMBER 30, 2003 CLASSIC INSTITUTIONAL TOTAL RETURN BOND FUND - -------------------------------------------------------------------------------- VALUE (000) - -------------------------------------------------------------------------------- OTHER ASSETS AND LIABILITIES (-4.0%) Investment Advisory Fees Payable $ (2) Shareholder Servicing Fees Payable (1) Other Assets and Liabilities, Net (389) ------- Total Other Assets and Liabilities (392) ------- NET ASSETS: Paid in Capital -- Institutional Shares (unlimited authorization -- no par value) based on 983,308 outstanding shares of beneficial interest 9,869 Accumulated net realized loss on investments (1) Net unrealized depreciation on investments (36) ------- Total Net Assets (100.0%) $ 9,832 ======= Net Asset Value, Offering and Redemption Price Per Share -- Institutional Shares ($9,832,067 / 983,308 shares) $10.00 ======= THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS. FOR DESCRIPTIONS OF ABBREVIATIONS AND FOOTNOTES, PLEASE SEE PAGE 28. 16 - -------------------------------------------------------------------------------- (UNAUDITED) CLASSIC INSTITUTIONAL U.S. GOVERNMENT SECURITIES SUPER SHORT INCOME PLUS FUND - -------------------------------------------------------------------------------- FACE AMOUNT (000) VALUE (000) - -------------------------------------------------------------------------------- U.S. GOVERNMENT AGENCY OBLIGATIONS (60.5%) FFCB (B) 1.080%, 04/29/05 $2,000 $ 2,000 FHLB 4.875%, 05/14/04 4,000 4,068 1.750%, 06/17/05 1,875 1,869 1.036%, 12/17/04 (B) 3,875 3,874 1.005%, 09/20/04 (B) 3,875 3,874 FHLB Discount Note (C) 1.026%, 12/24/03 3,000 2,998 FHLMC 5.000%, 01/15/04 4,000 4,019 3.362%, 07/01/33 1,498 1,510 3.250%, 12/15/03 4,000 4,003 3.000%, 07/15/04 3,000 3,032 2.500%, 04/21/06 1,000 1,001 2.250%, 07/06/05 950 951 1.125%, 11/07/05 (B) 2,500 2,500 1.107%, 09/09/05 (B) 2,000 2,000 FHLMC Discount Note (C) 1.073%, 01/08/04 3,575 3,571 1.072%, 01/29/04 3,000 2,995 FNMA 5.125%, 02/13/04 4,000 4,033 4.750%, 03/15/04 4,000 4,043 2.750%, 12/16/05 2,000 2,001 2.750%, 08/11/06 500 497 2.625%, 11/15/06 1,000 994 1.101%, 10/07/05 (B) 2,000 1,999 1.070%, 03/23/05 (B) 2,000 1,999 0.980%, 03/22/04 4,000 4,000 FNMA Discount Note (C) 1.073%, 02/11/04 3,750 3,742 1.063%, 12/02/03 4,000 4,000 SLMA 4.750%, 04/23/04 3,000 3,047 1.396%, 08/27/04 (B) 2,500 2,507 -------- Total U.S. Government Agency Obligations (Cost $77,117) 77,127 -------- - -------------------------------------------------------------------------------- FACE AMOUNT (000) VALUE (000) - -------------------------------------------------------------------------------- U.S. GOVERNMENT MORTGAGE-BACKED OBLIGATIONS (32.3%) FHLMC, Ser 1B1002 3.688%, 08/01/33 $2,047 $ 2,051 FHLMC, Ser 1520 Cl H 6.250%, 11/15/07 1,285 1,307 FHLMC, Ser 1629 Cl HA 3.500%, 12/15/21 134 135 FHLMC, Ser 2485 Cl AF 5.500%, 12/15/15 791 808 FHLMC, Ser 2485 Cl AH 5.500%, 12/15/13 310 313 FHLMC, Ser 2497 Cl NM 4.500%, 05/15/14 438 445 FHLMC, Ser 2508 Cl MF 5.000%, 04/15/13 905 922 FHLMC, Ser 2542 Cl AG 4.000%, 11/15/11 1,286 1,302 FHLMC, Ser 2542 Cl DL 4.500%, 05/15/11 1,333 1,339 FHLMC, Ser 2558 Cl BA 5.000%, 05/15/11 856 870 FHLMC, Ser 2572 Cl LB 5.000%, 04/15/16 1,000 1,027 FHLMC, Ser 2595 Cl AB 5.000%, 02/15/14 1,165 1,196 FHLMC, Ser 2685, Cl NA 4.000%, 11/15/06 988 1,000 FHLMC, Ser M80812 4.500%, 04/01/10 2,088 2,115 FHLMC, Ser M90803 4.500%, 03/01/08 1,706 1,746 FHLMC, Ser M90814 4.000%, 05/01/08 2,097 2,125 FHLMC, Ser M90818 4.000%, 06/01/08 917 929 FNMA, Ser 1993-197, Cl PH 6.000%, 07/25/08 1,267 1,300 FNMA, Ser 1993-43, Cl H 6.500%, 12/25/07 271 275 17 STATEMENT OF NET ASSETS - -------------------------------------------------------------------------------- STI CLASSIC FUNDS NOVEMBER 30, 2003 CLASSIC INSTITUTIONAL U.S. GOVERNMENT SECURITIES SUPER SHORT INCOME PLUS FUND - -------------------------------------------------------------------------------- FACE AMOUNT (000) VALUE (000) - -------------------------------------------------------------------------------- U.S. GOVERNMENT MORTGAGE-BACKED OBLIGATIONS--CONTINUED FNMA, Ser 1997-32, Cl QE 6.000%, 03/18/26 $ 193 $ 193 FNMA, Ser 2001-80, Cl PC 5.250%, 09/25/23 1,785 1,802 FNMA, Ser 2003-21, Cl XA 4.500%, 05/25/18 1,088 1,097 FNMA, Ser 2003-9, Cl UA 4.000%, 11/25/16 1,750 1,774 FNMA, Ser 555817 3.175%, 09/01/33 1,329 1,372 FNMA, Ser 555844 3.153%, 10/01/33 1,392 1,434 FNMA, Ser 635082 5.178%, 05/01/32 1,526 1,544 FNMA, Ser 688988 3.202%, 05/01/33 1,378 1,376 FNMA, Ser 692203 4.282%, 03/01/33 3,106 3,119 FNMA, Ser 701045 3.534%, 04/01/33 1,830 1,850 FNMA, Ser 709050 3.789%, 06/01/33 2,388 2,390 FNMA, Ser 722615 3.712%, 08/01/33 1,989 2,002 -------- Total U.S. Government Mortgage-Backed Obligations (Cost $41,289) 41,158 -------- - -------------------------------------------------------------------------------- SHARES/FACE AMOUNT (000) VALUE (000) - -------------------------------------------------------------------------------- CASH EQUIVALENTS (2.0%) Dreyfus Government Cash Management Fund 1,250,000 $ 1,250 Federated U.S. Government Fund 1,250,000 1,250 -------- Total Cash Equivalents (Cost $2,500) 2,500 -------- REPURCHASE AGREEMENT (3.5%) UBS Paine Webber 0.995%, dated 11/28/03, to be repurchased on 12/01/03, repurchase price $4,512,559 (collateralized by U.S. Government Obligations: total market value $4,606,577) (D) $4,512 4,512 -------- Total Repurchase Agreement (Cost $4,512) 4,512 -------- Total Investments (98.3%) (Cost $125,418) 125,297 -------- OTHER ASSETS AND LIABILITIES (1.7%) Investment Advisory Fees Payable (13) Administration Fees Payable (7) Custodian Fees Payable (3) Other Assets and Liabilities, Net 2,148 -------- Total Other Assets and Liabilities 2,125 -------- 18 - -------------------------------------------------------------------------------- (UNAUDITED) - -------------------------------------------------------------------------------- VALUE (000) - -------------------------------------------------------------------------------- NET ASSETS: Paid in Capital -- Institutional Shares (unlimited authorization -- no par value) based on 42,136,101 outstanding shares of beneficial interest $ 84,736 Paid in Capital -- L Shares (unlimited authorization -- no par value) based on 4,327,780 outstanding shares of beneficial interest 43,376 Distributions in excess of net investment income (238) Accumulated net realized loss on investments (331) Net unrealized depreciation on investments (121) -------- Total Net Assets (100.0%) $127,422 ======== Net Asset Value, Offering and Redemption Price Per Share -- Institutional Shares ($84,358,364 / 42,136,101 shares) $2.00 ======== Net Asset Value, Offering and Redemption Price Per Share -- L Shares ($43,063,742 / 4,327,780 shares) $9.95 ======== THE FUND INVESTS IN SECURITIES WHOSE VALUE IS DERIVED FROM AN UNDERLYING POOL OF MORTGAGES OR CONSUMER LOANS. PREPAYMENT OF THESE LOANS SHORTENS THE STATED MATURITY OF THESE RESPECTIVE OBLIGATIONS AND MAY RESULT IN A LOSS OF PREMIUM, IF ANY HAS BEEN PAID. ESTIMATES OF SUCH PREPAYMENTS ARE USED TO CALCULATE EXPECTED MATURITY DATES AND THE FUND'S AVERAGE DURATION. THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS. FOR DESCRIPTIONS OF ABBREVIATIONS AND FOOTNOTES, PLEASE SEE PAGE 28. 19 STATEMENT OF NET ASSETS - -------------------------------------------------------------------------------- STI CLASSIC FUNDS NOVEMBER 30, 2003 CLASSIC INSTITUTIONAL CASH MANAGEMENT MONEY MARKET FUND - -------------------------------------------------------------------------------- FACE AMOUNT (000) VALUE (000) - -------------------------------------------------------------------------------- U.S. GOVERNMENT AGENCY OBLIGATIONS (46.6%) FHLB, Ser RX04 1.020%, 06/09/04 $125,000 $ 125,000 FHLB, Ser VF04 1.046%, 09/29/04 50,000 50,000 FHLB, Ser VI04 1.066%, 10/06/04 50,000 50,000 FHLMC Discount Note (C) 0.990%, 12/19/03 50,000 49,975 1.305%, 12/29/03 55,000 54,945 1.215%, 03/25/04 25,000 24,904 1.209%, 06/21/04 25,000 24,831 1.225%, 08/12/04 45,000 44,613 FHLMC, MTN 1.200%, 08/06/04 50,000 50,000 FNMA 1.270%, 12/18/03 40,000 39,976 1.030%, 07/26/04 85,000 85,000 1.076%, 08/13/04 80,000 80,000 1.040%, 08/23/04 120,000 120,000 1.500%, 09/24/04 30,000 30,000 FNMA Discount Note (C) 1.042%, 12/01/03 50,000 50,000 1.104%, 01/07/04 40,000 39,955 1.233%, 01/23/04 30,000 29,946 1.035%, 01/29/04 100,000 99,999 1.116%, 02/11/04 50,000 49,889 1.212%, 07/01/04 50,000 49,645 1.160%, 08/20/04 50,000 49,511 1.073%, 11/12/04 30,000 29,618 SLMA 1.026%, 12/18/03 50,000 50,000 ---------- Total U.S. Government Agency Obligations (Cost $1,277,807) 1,277,807 ---------- - -------------------------------------------------------------------------------- FACE AMOUNT (000) VALUE (000) - -------------------------------------------------------------------------------- CORPORATE OBLIGATIONS (15.6%) COMMERCIAL BANKS (6.5%) Branch Banking & Trust (B) 1.110%, 01/26/04 $ 55,000 $ 55,000 First Tennessee Bank, Ser CD (B) 1.110%, 01/14/04 50,000 50,000 Key Bank (B) 1.290%, 04/23/04 23,000 23,013 Wells Fargo Bank (B) 1.060%, 10/07/04 49,500 49,500 ---------- 177,513 ---------- FINANCE (6.4%) Beta Finance, MTN (A) (B) 1.061%, 01/07/04 50,000 50,000 1.096%, 09/07/04 25,000 25,000 Dorada Finance, MTN (A) (B) 1.096%, 08/13/04 25,000 25,000 Sigma Finance, MTN (A)(B) 1.081%, 12/03/03 50,000 50,000 1.086%, 09/01/04 25,000 24,996 ---------- 174,996 ---------- INVESTMENT BANKERS/BROKER DEALERS (1.8%) Bear Stearns, Ser B, MTN (B) 1.462%, 04/16/04 25,000 25,025 1.080%, 07/19/04 25,000 25,000 ---------- 50,025 ---------- SPECIAL PURPOSE ENTITY (0.9%) Barrington Development (B) 1.140%, 12/01/32 21,135 21,135 Carmichael Properties (B) 1.170%, 10/01/20 3,070 3,070 ---------- 24,205 ---------- Total Corporate Obligations (Cost $426,739) 426,739 ---------- 20 - -------------------------------------------------------------------------------- (UNAUDITED) - -------------------------------------------------------------------------------- FACE AMOUNT (000) VALUE (000) - -------------------------------------------------------------------------------- COMMERCIAL PAPER (5.9%) ASSET BACKED (3.5%) Ciesco (C) 1.050%, 12/04/03 $ 25,000 $ 24,998 1.050%, 12/16/03 10,000 9,995 Mane Funding (C) 1.060%, 12/09/03 30,000 29,993 1.120%, 01/27/04 30,000 29,947 ---------- 94,933 ---------- FINANCE (1.3%) CIT Group (C) 1.140%, 01/05/04 23,500 23,474 1.160%, 03/04/04 13,770 13,729 ---------- 37,203 ---------- INVESTMENT BANKERS/BROKER DEALERS (1.1%) Morgan Stanley (C) 1.110%, 07/27/04 30,000 30,000 ---------- Total Commercial Paper (Cost $162,136) 162,136 ---------- CERTIFICATES OF DEPOSIT (4.7%) American Express Centurion (B) 1.078%, 09/27/04 30,000 30,000 Credit Suisse First Boston, Ser YCD (B) 1.095%, 09/20/04 40,000 40,000 First Tennessee Bank, Ser CD (B) 1.090%, 06/30/04 30,000 30,000 Regions Bank, Ser CD (B) 1.060%, 07/29/04 30,000 30,000 ---------- Total Certificates of Deposit (Cost $130,000) 130,000 ---------- TAXABLE MUNICIPAL BONDS (14.2%) Alaska State, Housing Finance Agency, Ser C, RB, MBIA (B) 1.100%, 12/01/32 48,500 48,500 - -------------------------------------------------------------------------------- FACE AMOUNT (000) VALUE (000) - -------------------------------------------------------------------------------- TAXABLE MUNICIPAL BONDS--CONTINUED Colorado State Housing Finance Authority, Ser AA-1, RB (B) 1.120%, 05/01/41 $ 20,025 $ 20,025 Colorado State Housing Finance Authority, Ser B-2, RB (B) 1.120%, 11/01/33 20,700 20,700 Colorado State Housing Finance Authority, Ser C-2, RB (B) 1.120%, 05/01/22 10,000 10,000 Colorado State Housing Finance Authority, Ser I-C-1, RB (B) 1.120%, 11/01/32 35,000 35,000 Florida Housing Finance, Ser A-2, RB (B) 1.130%, 01/15/35 2,500 2,500 Illinois State, Student Assistance Community, Ser D, RB (B) 1.120%, 09/01/23 40,000 40,000 LP Pinewood SPV, LLC Ser 2003 (B) 1.104%, 02/01/18 14,900 14,900 Michigan State Housing Development Authority, Ser D, RB (B) 1.080%, 06/01/34 20,000 20,000 Mississippi State, Nissan Project, Ser A, RB (B) 1.100%, 11/01/28 50,000 50,000 New Jersey Economic Development, Pension Funding 1.120%, 02/15/29 40,000 40,000 New York City, Housing Development, 90 Washington Street Project, Ser A, RB (B) 1.070%, 07/01/35 32,000 32,000 New York City, Housing Development, Chelsea Centro Project, RB (B) 1.110%, 06/01/33 28,400 28,400 21 STATEMENT OF NET ASSETS - -------------------------------------------------------------------------------- STI CLASSIC FUNDS NOVEMBER 30, 2003 CLASSIC INSTITUTIONAL CASH MANAGEMENT MONEY MARKET FUND - -------------------------------------------------------------------------------- FACE AMOUNT (000) VALUE (000) - -------------------------------------------------------------------------------- TAXABLE MUNICIPAL BONDS--CONTINUED Newport News, Virginia, Economic Development Authority, Shipbuilding Project, Ser A, RB (B) 1.140%, 07/01/31 $ 4,640 $ 4,640 Newport News, Virginia, Economic Development Authority, Shipbuilding Project, Ser B, RB (B) 1.090%, 07/01/31 23,330 23,330 ---------- Total Taxable Municipal Bonds (Cost $389,995) 389,995 ---------- REPURCHASE AGREEMENTS (13.0%) ABN Amro 1.030%, dated 11/28/03, to be repurchased on 12/01/03, repurchase price $50,470,742 (collateralized by U.S. Government Obligations: total market value $51,475,759) (D) 50,466 50,466 Banque Nationale de Paris 1.050%, dated 11/28/03, to be repurchased on 12/01/03, repurchase price $56,377,262 (collateralized by U.S. Government Obligations: total market value $57,500,249) (D) 56,372 56,372 Bear Stearns 0.995%, dated 11/28/03, to be repurchased on 12/01/03, repurchase price $15,773,712 (collateralized by U.S. Government Obligations: total market value $16,092,276) (D) 15,772 15,772 - -------------------------------------------------------------------------------- FACE AMOUNT (000) VALUE (000) - -------------------------------------------------------------------------------- REPURCHASE AGREEMENTS--CONTINUED Lehman Brothers 0.995%, dated 11/28/03, to be repurchased on 12/01/03, repurchase price $73,949,293 (collateralized by U.S. Government Obligations: total market value $75,426,264) (D) $ 73,943 $ 73,943 Merrill Lynch 0.995%, dated 11/28/03, to be repurchased on 12/01/03, repurchase price $72,175,554 (collateralized by U.S. Government Obligations: total market value $73,612,995) (D) 72,170 72,170 UBS Paine Webber 0.995%, dated 11/28/03, to be repurchased on 12/01/03, repurchase price $87,241,616 (collateralized by U.S. Government Obligations: total market value $88,980,530) (D) 87,234 87,234 ---------- Total Repurchase Agreements (Cost $355,957) 355,957 ---------- Total Investments (100.0%) (Cost $2,742,634) 2,742,634 ---------- OTHER ASSETS AND LIABILITIES (0.0%) Investment Advisory Fees Payable (395) Administration Fees Payable (161) Custodian Fees Payable (23) Other Assets and Liabilities, Net 1,647 ---------- Total Other Assets and Liabilities 1,068 ---------- 22 - -------------------------------------------------------------------------------- (UNAUDITED) - -------------------------------------------------------------------------------- VALUE (000) - -------------------------------------------------------------------------------- NET ASSETS: Paid in Capital -- Institutional Shares (unlimited authorization -- no par value) based on 2,743,686,568 outstanding shares of beneficial interest $2,743,686 Distributions in excess of net investment income (12) Accumulated net realized gain on investments 28 ---------- Total Net Assets (100.0%) $2,743,702 ========== Net Asset Value, Offering and Redemption Price Per Share -- Institutional Shares ($2,743,701,957 / 2,743,686,568 shares) $1.00 ========== THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS. FOR DESCRIPTIONS OF ABBREVIATIONS AND FOOTNOTES, PLEASE SEE PAGE 28. 23 STATEMENT OF NET ASSETS - -------------------------------------------------------------------------------- STI CLASSIC FUNDS NOVEMBER 30, 2003 CLASSIC INSTITUTIONAL U.S. GOVERNMENT SECURITIES MONEY MARKET FUND - -------------------------------------------------------------------------------- FACE AMOUNT (000) VALUE (000) - -------------------------------------------------------------------------------- U.S. GOVERNMENT AGENCY OBLIGATIONS (68.9%) FFCB 0.998%, 08/24/04 $15,000 $ 14,993 FHLB 0.995%, 01/29/04 35,000 34,999 FHLB Discount Note (C) 1.235%, 04/16/04 10,000 9,954 FHLB, Ser 423 1.036%, 12/17/04 30,000 29,995 FHLB, Ser RX04 1.020%, 06/09/04 50,000 50,000 FHLB, Ser VF04 1.046%, 09/29/04 25,000 25,000 FHLB, Ser VI04 1.066%, 10/06/04 25,000 25,000 FHLMC 3.500%, 04/19/04 5,610 5,659 1.200%, 08/06/04 30,000 30,000 1.520%, 12/24/04 (G) 15,000 15,000 FHLMC Discount Note (C) 1.367%, 12/04/03 25,000 24,997 1.084%, 12/15/03 20,000 19,992 1.083%, 12/17/03 20,000 19,990 1.000%, 12/31/03 15,000 14,988 1.084%, 01/21/04 20,000 19,969 1.223%, 01/26/04 10,000 9,981 1.116%, 02/04/04 20,000 19,960 1.265%, 02/26/04 10,000 9,970 1.210%, 03/04/04 15,000 14,958 1.210%, 06/21/04 15,000 14,898 FNMA 1.030%, 07/26/04 20,000 20,000 1.076%, 08/13/04 35,000 35,000 1.040%, 08/23/04 40,000 40,000 1.500%, 09/24/04 15,000 15,000 - -------------------------------------------------------------------------------- FACE AMOUNT (000) VALUE (000) - -------------------------------------------------------------------------------- U.S. GOVERNMENT AGENCY OBLIGATIONS--CONTINUED FNMA Discount Note (C) 1.050%, 12/24/03 $25,000 $ 24,983 1.000%, 01/07/04 10,000 9,990 1.147%, 05/19/04 15,000 14,919 1.212%, 07/01/04 10,000 9,929 1.358%, 08/20/04 10,000 9,902 1.273%, 09/01/04 15,000 14,856 1.311%, 09/17/04 10,000 9,904 1.337%, 11/12/04 20,000 19,746 SLMA 1.026%, 12/18/03 25,000 25,000 -------- Total U.S. Government Agency Obligations (Cost $659,532) 659,532 -------- REPURCHASE AGREEMENTS (32.6%) ABN Amro 1.030%, dated 11/28/03, to be repurchased on 12/01/03, repurchase price $27,793,019 (collateralized by U.S. Government Obligations: total market value $28,346,712) (D) 27,791 27,791 Banque Nationale de Paris 1.050%, dated 11/28/03, to be repurchased on 12/01/03, repurchase price $49,276,012 (collateralized by U.S. Government Obligations: total market value $50,257,266) (D) 49,272 49,272 Bear Stearns 0.995%, dated 11/28/03, to be repurchased on 12/01/03, repurchase price $8,051,018 (collateralized by U.S. Government Obligations: total market value $8,211,513) (D) 8,050 8,050 24 - -------------------------------------------------------------------------------- (UNAUDITED) - -------------------------------------------------------------------------------- FACE AMOUNT (000) VALUE (000) - -------------------------------------------------------------------------------- Lehman Brothers 0.995%, dated 11/28/03, to be repurchased on 12/01/03, repurchase price $97,100,451 (collateralized by U.S. Government Obligations: total market value $99,035,984) (D) $97,092 $ 97,092 Merrill Lynch 0.995%, dated 11/28/03, to be repurchased on 12/01/03, repurchase price $42,228,243 (collateralized by U.S. Government Obligations: total market value $43,072,965) (D) 42,225 42,225 Morgan Stanley 1.040%, dated 11/28/03, to be repurchased on 12/01/03, repurchase price $49,780,526 (collateralized by U.S. Government Obligations: total market value $50,733,715) (D) 49,776 49,776 UBS Paine Webber 0.995%, dated 11/28/03, to be repurchased on 12/01/03, repurchase price $38,582,821 (collateralized by U.S. Government Obligations: total market value $39,353,910) (D) 38,580 38,580 -------- Total Repurchase Agreements (Cost $312,786) 312,786 -------- Total Investments (101.5%) (Cost $972,318) 972,318 -------- - -------------------------------------------------------------------------------- VALUE (000) - -------------------------------------------------------------------------------- OTHER ASSETS AND LIABILITIES (-1.5%) Investment Advisory Fee Payable $ (149) Administration Fee Payable (55) Custodian Fees Payable (8) Other Assets and Liabilities, Net (14,608) -------- Total Other Assets and Liabilities (14,820) -------- NET ASSETS: Paid in Capital -- Institutional Shares (unlimited authorization -- no par value) based on 957,498,036 outstanding shares of beneficial interest 957,498 -------- Total Net Assets (100.0%) $957,498 ======== Net Asset Value, Offering and Redemption Price Per Share -- Institutional Shares ($957,497,962 / 957,498,036 shares) $1.00 ======== THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS. FOR DESCRIPTIONS OF ABBREVIATIONS AND FOOTNOTES, PLEASE SEE PAGE 28. 25 STATEMENT OF NET ASSETS - -------------------------------------------------------------------------------- STI CLASSIC FUNDS NOVEMBER 30, 2003 CLASSIC INSTITUTIONAL U.S. TREASURY SECURITIES MONEY MARKET FUND - -------------------------------------------------------------------------------- FACE AMOUNT (000) VALUE (000) - -------------------------------------------------------------------------------- U.S. TREASURY OBLIGATIONS (23.6%) U.S. Treasury Notes 3.250%, 12/31/03 $ 40,000 $ 40,074 5.875%, 11/15/04 100,000 104,302 2.000%, 11/30/04 100,000 100,554 US Treasury Bill 0.000%, 12/26/03 300,000 299,806 ---------- Total U.S. Treasury Obligations (Cost $544,736) 544,736 ---------- REPURCHASE AGREEMENTS (76.4%) ABN Amro 1.000%, dated 11/28/03, to be repurchased on 12/01/03, repurchase price $68,169,977 (collateralized by U.S. Treasury Obligations: total market value $69,527,716) (D) 68,164 68,164 Banque Nationale de Paris 1.020%, dated 11/28/03, to be repurchased on 12/01/03, repurchase price $113,637,961 (collateralized by U.S. Treasury Obligations: total market value $115,901,030) (D) 113,628 113,628 Bear Stearns 0.975%, dated 11/28/03, to be repurchased on 12/01/03, repurchase price $35,369,405 (collateralized by U.S. Treasury Obligations: total market value $36,084,370) (D) 35,367 35,367 - -------------------------------------------------------------------------------- FACE AMOUNT (000) VALUE (000) - -------------------------------------------------------------------------------- REPURCHASE AGREEMENTS--CONTINUED Deutsche Bank 1.020%, dated 11/28/03, to be repurchased on 12/01/03, repurchase price $331,613,949 (collateralized by U.S. Treasury Obligations: total market value $338,218,123) (D) $331,586 $ 331,586 Dresdner Bank 0.955%, dated 11/28/03, to be repurchased on 12/01/03, repurchase price $97,227,604 (collateralized by U.S. Treasury Obligations: total market value $99,168,018) (D) 97,220 97,220 Greenwich Capital 0.975%, dated 11/28/03, to be repurchased on 12/01/03, repurchase price $112,593,353 (collateralized by U.S. Treasury Obligations: total market value $114,837,580) (D) 112,584 112,584 JP Morgan Chase 0.965%, dated 11/28/03, to be repurchased on 12/01/03, repurchase price $96,672,998 (collateralized by U.S. Treasury Obligations: total market value $98,598,639) (D) 96,665 96,665 Lehman Brothers 0.975%, dated 11/28/03, to be repurchased on 12/01/03, repurchase price $95,665,257 (collateralized by U.S. Treasury Obligations: total market value $97,572,266) (D) 95,657 95,657 26 - -------------------------------------------------------------------------------- (UNAUDITED) - -------------------------------------------------------------------------------- FACE AMOUNT (000) VALUE (000) - -------------------------------------------------------------------------------- REPURCHASE AGREEMENTS--CONTINUED Merrill Lynch 0.935%, dated 11/28/03, to be repurchased on 12/01/03, repurchase price $39,559,032 (collateralized by U.S. Treasury Obligations: total market value $40,347,250) (D) $ 39,556 $ 39,556 Morgan Stanley 1.000%, dated 11/28/03, to be repurchased on 12/01/03, repurchase price $112,233,144 (collateralized by U.S. Treasury Obligations: total market value $114,468,628) (D) 112,224 112,224 Salomon Smith Barney 0.980%, dated 11/28/03, to be repurchased on 12/01/03, repurchase price $98,501,909 (collateralized by U.S. Treasury Obligations: total market value $100,516,383) (D) 98,494 98,494 UBS Paine Webber 0.965%, dated 11/28/03, to be repurchased on 12/01/03, repurchase price $558,939,427 (collateralized by U.S. Treasury Obligations: total market value $570,075,120) (D) 558,894 558,894 ---------- Total Repurchase Agreements (Cost $1,760,039) 1,760,039 ---------- Total Investments (100.0%) (Cost $2,304,775) 2,304,775 ---------- - -------------------------------------------------------------------------------- VALUE (000) - -------------------------------------------------------------------------------- OTHER ASSETS AND LIABILITIES (0.0%) Investment Advisory Fee Payable $ (339) Administration Fee Payable (100) Custodian Fees Payable (17) Other Assets and Liabilities, Net 729 ---------- Total Other Assets and Liabilities 273 ---------- NET ASSETS: Paid in Capital -- Institutional Shares (unlimited authorization -- no par value) based on 682,371,753 outstanding shares of beneficial interest 682,372 Paid in Capital -- Corporate Trust Shares (unlimited authorization -- no par value) based on 1,621,970,757 outstanding shares of beneficial interest 1,621,970 Distributions in excess of net investment income (493) Accumulated net realized gain on investments 1,199 ---------- Total Net Assets (100.0%) $2,305,048 ========== Net Asset Value, Offering and Redemption Price Per Share -- Institutional Shares ($682,570,039 / 682,371,753 shares) $1.00 ========== Net Asset Value, Offering and Redemption Price Per Share -- Corporate Trust Shares ($1,622,477,518 / 1,621,970,757 shares) $1.00 ========== THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS. FOR DESCRIPTIONS OF ABBREVIATIONS AND FOOTNOTES, PLEASE SEE PAGE 28. 27 STATEMENT OF NET ASSETS - -------------------------------------------------------------------------------- STI CLASSIC FUNDS NOVEMBER 30, 2003 KEY TO ABBREVIATIONS AND FOOTNOTES USED IN THE STATEMENTS OF NET ASSETS Cl Class FFCB Federal Farm Credit Bank FHLB Federal Home Loan Bank FHLMC Federal Home Loan Mortgage Corporation FNMA Federal National Mortgage Association GNMA Government National Mortgage Association LLC Limited Liability Company LP Limited Partnership MBIA Security insured by the Municipal Bond Insurance Association MTN Medium Term Note PLC Public Limited Company RB Revenue Bond Ser Series SLMA Student Loan Marketing Association (A) Securities sold within terms of a private placement memorandum, exempt from registration under section 144a of the Securities Act of 1933, as amended, and may be sold only to dealers in that program or other "accredited investors." (B) Adjustable Rate Security. The rate reported on the Statement of Net Assets is the rate in effect on November 30, 2003. Demand and interest rate reset features give these securities a shorter effective maturity date. (C) Rate shown is the effective yield at the date of purchase. (D) Tri-Party Repurchase Agreement (E) This security or a partial position of this security is on loan at November 30, 2003 (See Note 8 in the Notes to Financial Statements). The total value of securities on loan at November 30, 2003 was $881,390 and $4,074,395 for the Institutional Short-Term Bond Fund and Institutional Super Short Income Plus Fund, respectively. (F) This security was purchased with cash collateral held from securities lending (See Note 8 in the Notes to Financial Statements). (G) Security purchased on a when-issued basis. 28 This page intentionally left blank
STATEMENTS OF OPERATIONS (000) - ------------------------------------------------------------------------------------------------------------------------------------ STI CLASSIC FUNDS FOR THE SIX MONTH PERIOD ENDED NOVEMBER 30, 2003 (UNAUDITED) CLASSIC CLASSIC CLASSIC INSTITUTIONAL CLASSIC INSTITUTIONAL INSTITUTIONAL SUPER SHORT INSTITUTIONAL HIGH QUALITY SHORT-TERM INCOME TOTAL RETURN BOND FUND (1) BOND FUND PLUS FUND BOND FUND (2) ----------------- ----------------- ----------------- ----------------- Income: Interest Income ............................ $ 40 $ 264 $2,161 $ 22 Net Income from Securities Lending ......... -- -- 2 -- ---- ----- ------ ---- Total Income ............................... 40 264 2,163 22 ---- ----- ------ ---- Expenses: Investment Advisory Fees ................... 8 64 652 3 Administration Fees ........................ 1 7 90 1 Shareholder Service Fees - Institutional Shares ..................... 3 27 185 2 Shareholder Service Fees - Corporate Trust Shares ................... -- -- -- -- Shareholder Service Fees - T Shares ........ 1 -- 141 -- Distribution Fees - L Shares ............... -- -- -- -- Custody Fees ............................... -- 1 6 -- Transfer Agent Shareholder Servicing Fees .. -- -- 3 -- Transfer Agent Fees - Institutional Shares . -- 8 8 -- Transfer Agent Fees - Corporate Trust Shares ................... -- -- -- -- Transfer Agent Fees - T Shares ............. -- -- 8 -- Transfer Agent Fees - L Shares ............. -- -- -- -- Transfer Agent Out of Pocket Expenses ................... -- 1 6 -- Printing Fees .............................. -- -- 3 -- Professional Fees .......................... -- 1 4 -- Trustee Fees ............................... -- -- 1 -- Registration Fees .......................... -- -- 11 -- Insurance and Other Fees ................... -- -- 3 -- ---- ----- ------ ---- Total Expenses ............................. 13 109 1,121 6 ---- ----- ------ ---- Less: Investment Advisory Fees Waived ...... (1) (27) (391) (1) Administration Fees Waived ........... -- -- -- -- Shareholder Service Fees Waived - Institutional Shares .............. (1) (27) (185) (1) Shareholder Service Fees Waived - T Shares .......................... -- -- (28) -- Distribution Fees Waived - L Shares .. -- -- -- -- ---- ----- ------ ---- Net Expenses .............................. 11 55 517 4 ---- ----- ------ ---- Net Investment Income ......................... 29 209 1,646 18 ---- ----- ------ ---- Net Realized Gain (Loss) on Securities Sold ... (18) 39 (243) (1) Net Change in Unrealized Depreciation on Investments ................ (73) (238) (921) (36) ---- ----- ------ ---- Increase (Decrease) in Net Assets Resulting from Operations ............................ $(62) $ 10 $ 482 $(19) ==== ===== ====== ==== (1) Commenced operations on October 27, 2003. (2) Commenced operations on October 15, 2003.
Amounts designated as "--" are either $0 or round to $0. 30
- ------------------------------------------------------------------------------------------------------------------------------------ CLASSIC INSTITUTIONAL CLASSIC CLASSIC CLASSIC U.S. GOVERNMENT INSTITUTIONAL INSTITUTIONAL INSTITUTIONAL SECURITIES SUPER CASH MANAGEMENT U.S. GOVERNMENT U.S. TREASURY SHORT INCOME MONEY MARKET SECURITIES MONEY SECURITIES MONEY PLUS FUND FUND MARKET FUND MARKET FUND -------------------- ------------------- -------------------- ------------------ Income: Interest Income ............................ $1,045 $16,352 $ 5,357 $10,107 Net Income from Securities Lending ......... 1 -- -- -- ------ ------- ------- ------- Total Income ............................... 1,046 16,352 5,357 10,107 ------ ------- ------- ------- Expenses: Investment Advisory Fees ................... 295 2,948 992 2,040 Administration Fees ........................ 51 1,015 341 702 Shareholder Service Fees - Institutional Shares ..................... 126 -- -- -- Shareholder Service Fees - Corporate Trust Shares ................... -- -- -- 1,429 Shareholder Service Fees - T Shares ........ -- -- -- -- Distribution Fees - L Shares ............... 93 -- -- -- Custody Fees ............................... 4 36 12 26 Transfer Agent Shareholder Servicing Fees .. 2 40 12 24 Transfer Agent Fees - Institutional Shares . 8 8 8 8 Transfer Agent Fees - Corporate Trust Shares ................... -- -- -- 8 Transfer Agent Fees - T Shares ............. -- -- -- -- Transfer Agent Fees - L Shares ............. 8 -- -- -- Transfer Agent Out of Pocket Expenses ................... 4 47 22 46 Printing Fees .............................. 2 33 9 25 Professional Fees .......................... 3 50 17 35 Trustee Fees ............................... 1 13 4 9 Registration Fees .......................... 4 49 17 34 Insurance and Other Fees ................... 2 17 -- 25 ------ ------- ------- ------- Total Expenses ............................. 603 4,256 1,434 4,411 ------ ------- ------- ------- Less: Investment Advisory Fees Waived ...... (206) (398) (44) (143) Administration Fees Waived ........... -- (118) (79) (153) Shareholder Service Fees Waived - Institutional Shares .............. (126) -- -- -- Shareholder Service Fees Waived - T Shares .......................... -- -- -- -- Distribution Fees Waived - L Shares .. (42) -- -- -- ------ ------- ------- ------- Net Expenses .............................. 229 3,740 1,311 4,115 ------ ------- ------- ------- Net Investment Income ......................... 817 12,612 4,046 5,992 ------ ------- ------- ------- Net Realized Gain (Loss) on Securities Sold ... (173) 15 -- 574 Net Change in Unrealized Depreciation on Investments ................ (537) -- -- -- ------ ------- ------- ------- Increase (Decrease) in Net Assets Resulting from Operations ............................ $ 107 $12,627 $ 4,046 $ 6,566 ====== ======= ======= =======
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS. 31
STATEMENTS OF CHANGES IN NET ASSETS (000) - ------------------------------------------------------------------------------------------------------------------------------------ STI CLASSIC FUNDS FOR THE SIX MONTH PERIOD ENDED NOVEMBER 30, 2003 (UNAUDITED) AND THE YEAR ENDED MAY 31, 2003 CLASSIC INSTITUTIONAL CLASSIC INSTITUTIONAL CLASSIC INSTITUTIONAL SUPER SHORT HIGH QUALITY BOND FUND SHORT-TERM BOND FUND INCOME PLUS FUND ---------------------- --------------------- --------------------- 10/27/03*- 06/01/03- 06/01/02- 06/01/03- 06/01/02- 11/30/03 11/30/03 05/31/03 11/30/03 05/31/03 ---------- --------- --------- --------- --------- Operations: Net Investment Income ..................... $ 29 $ 209 $ 450 $ 1,646 $ 1,924 Net Realized Gain (Loss) on Investments ... (18) 39 392 (243) 73 Net Change in Unrealized Appreciation (Depreciation) on Investments .......................... (73) (238) 291 (921) 929 ------- ------- ------- -------- -------- Increase (Decrease) in Net Assets from Operations ......................... (62) 10 1,133 482 2,926 ------- ------- ------- -------- -------- Dividends and Distributions to Shareholders: Net Investment Income: Institutional Shares .................... (22) (213) (450) (1,120) (1,869) Corporate Trust Shares .................. -- -- -- -- -- T Shares ................................ (7) -- -- (740) (264) L Shares ................................ -- -- -- -- -- Capital Gains: Institutional Shares .................... -- -- (268) -- (14) Corporate Trust Shares .................. -- -- -- -- -- T Shares ................................ -- -- -- -- (1) ------- ------- ------- -------- -------- Total Dividends and Distributions ....... (29) (213) (718) (1,860) (2,148) ------- ------- ------- -------- -------- Capital Transactions (1): Institutional Shares: Proceeds from Shares Issued ............. 17,110 6,683 11,283 97,792 190,846 Reinvestment of Cash Distributions ...... 10 95 450 172 125 Cost of Shares Repurchased .............. -- (5,722) (7,547) (86,602) (78,814) ------- ------- ------- -------- -------- Increase (Decrease) in Net Assets from Institutional Share Transactions ... 17,120 1,056 4,186 11,362 112,157 ------- ------- ------- -------- -------- Corporate Trust Shares: Proceeds from Shares Issued ............. -- -- -- -- -- Cost of Shares Repurchased .............. -- -- -- -- -- ------- ------- ------- -------- -------- Increase (Decrease) in Net Assets from Corporate Trust Share Transactions . -- -- -- -- -- ------- ------- ------- -------- -------- T Shares (2): Proceeds from Shares Issued ............. 21,770 -- -- 103,309 76,338 Reinvestment of Cash Distributions ...... 1 -- -- 88 35 Cost of Shares Repurchased .............. -- -- -- (27,928) (6,651) ------- ------- ------- -------- -------- Increase in Net Assets from T Share Transactions ............... 21,771 -- -- 75,469 69,722 ------- ------- ------- -------- -------- L Shares (3): Proceeds from Shares Issued ............. -- -- -- -- -- Reinvestment of Cash Distributions ...... -- -- -- -- -- Cost of Shares Repurchased .............. -- -- -- -- -- ------- ------- ------- -------- -------- Increase in Net Assets from L Share Transactions ............... -- -- -- -- -- ------- ------- ------- -------- -------- Increase (Decrease) in Net Assets from Share Transactions ............... 38,891 1,056 4,186 86,831 181,879 ------- ------- ------- -------- -------- Total Increase (Decrease) in Net Assets ........................ 38,800 853 4,601 85,453 182,657 ------- ------- ------- -------- -------- Net Assets: Beginning of Period ..................... -- 20,777 16,176 216,387 33,730 ------- ------- ------- -------- -------- End of Period ........................... $38,800 $21,630 $20,777 $301,840 $216,387 ======= ======= ======= ======== ======== * Commencement of Operations. (1) See Note 6 in the Notes to Financial Statements for additional information. (2) The STI Classic Institutional High Quality Bond Fund T Shares commenced operations on November 13, 2003. The STI Classic Institutional Super Short Income Plus Fund T Shares commenced operations on October 3, 2002. (3) The STI Classic Institutional U.S. Government Securities Super Short Income Plus L Shares commenced operations on April 16, 2003. Amounts designated as "--" are either $0 or round to $0.
32
- ------------------------------------------------------------------------------------------------------------------------------------ CLASSIC INSTITUTIONAL CLASSIC INSTITUTIONAL U.S. GOVERNMENT CLASSIC INSTITUTIONAL TOTAL RETURN SECURITIES SUPER SHORT CASH MANAGEMENT BOND FUND INCOME PLUS FUND MONEY MARKET FUND --------------------- --------------------------- ------------------------- 10/15/03*- 06/01/03- 06/01/02- 06/01/03- 06/01/02- 11/30/03 11/30/03 05/31/03 11/30/03 05/31/03 ---------- ---------- ---------- ---------- ---------- Operations: Net Investment Income ..................... $ 18 $ 817 $ 1,239 $ 12,612 $ 45,953 Net Realized Gain (Loss) on Investments ... (1) (173) 192 15 13 Net Change in Unrealized Appreciation (Depreciation) on Investments .......................... (36) (537) 356 -- -- ------ -------- -------- ---------- ----------- Increase (Decrease) in Net Assets from Operations ......................... (19) 107 1,787 12,627 45,966 ------ -------- -------- ---------- ----------- Dividends and Distributions to Shareholders: Net Investment Income: Institutional Shares .................... (18) (760) (1,504) (12,624) (45,956) Corporate Trust Shares .................. -- -- -- -- -- T Shares ................................ -- -- -- -- -- L Shares ................................ -- (292) (16) -- -- Capital Gains: Institutional Shares .................... -- -- (61) -- -- Corporate Trust Shares .................. -- -- -- -- -- T Shares ................................ -- -- -- -- -- ------ -------- -------- ---------- ----------- Total Dividends and Distributions ....... (18) (1,052) (1,581) (12,624) (45,956) ------ -------- -------- ---------- ----------- Capital Transactions (1): Institutional Shares: Proceeds from Shares Issued ............. 9,878 36,070 123,870 3,741,361 8,275,886 Reinvestment of Cash Distributions ...... 15 371 919 7,724 28,135 Cost of Shares Repurchased .............. (24) (46,731) (57,852) (3,991,136) (8,727,887) ------ -------- -------- ---------- ----------- Increase (Decrease) in Net Assets from Institutional Share Transactions ... 9,869 (10,290) 66,937 (242,051) (423,866) ------ -------- -------- ---------- ----------- Corporate Trust Shares: Proceeds from Shares Issued ............. -- -- -- -- -- Cost of Shares Repurchased .............. -- -- -- -- -- ------ -------- -------- ---------- ----------- Increase (Decrease) in Net Assets from Corporate Trust Share Transactions . -- -- -- -- -- ------ -------- -------- ---------- ----------- T Shares (2): Proceeds from Shares Issued ............. -- -- -- -- -- Reinvestment of Cash Distributions ...... -- -- -- -- -- Cost of Shares Repurchased .............. -- -- -- -- -- ------ -------- -------- ---------- ----------- Increase in Net Assets from T Share Transactions ............... -- -- -- -- -- ------ -------- -------- ---------- ----------- L Shares (3): Proceeds from Shares Issued ............. -- 65,027 25,108 -- -- Reinvestment of Cash Distributions ...... -- 239 14 -- -- Cost of Shares Repurchased .............. -- (45,644) (1,368) -- -- ------ -------- -------- ---------- ----------- Increase in Net Assets from L Share Transactions ............... -- 19,622 23,754 -- -- ------ -------- -------- ---------- ----------- Increase (Decrease) in Net Assets from Share Transactions ............... 9,869 9,332 90,691 (242,051) (423,866) ------ -------- -------- ---------- ----------- Total Increase (Decrease) in Net Assets ........................ 9,832 8,387 90,897 (242,048) (423,856) ------ -------- -------- ---------- ----------- Net Assets: Beginning of Period ..................... -- 119,035 28,138 2,985,750 3,409,606 ------ -------- -------- ---------- ----------- End of Period ........................... $9,832 $127,422 $119,035 $2,743,702 $ 2,985,750 ====== ======== ======== ========== ===========
CLASSIC INSTITUTIONAL CLASSIC INSTITUTIONAL U.S. GOVERNMENT U.S. TREASURY SECURITIES MONEY MARKET FUND SECURITIES MONEY MARKET FUND ---------------------------- ---------------------------- 06/01/03- 06/01/02- 06/01/03- 06/01/02- 11/30/03 05/31/03 11/30/03 05/31/03 ------------ ------------ ------------ ------------ Operations: Net Investment Income ..................... $ 4,046 $ 14,586 $ 5,992 $ 22,122 Net Realized Gain (Loss) on Investments ... -- -- 574 900 Net Change in Unrealized Appreciation (Depreciation) on Investments .......................... -- -- -- -- ----------- ----------- ----------- ----------- Increase (Decrease) in Net Assets from Operations ......................... 4,046 14,586 6,566 23,022 ----------- ----------- ----------- ----------- Dividends and Distributions to Shareholders: Net Investment Income: Institutional Shares .................... (4,046) (14,586) (2,370) (6,751) Corporate Trust Shares .................. -- -- (4,119) (15,371) T Shares ................................ -- -- -- -- L Shares ................................ -- -- -- -- Capital Gains: Institutional Shares .................... -- -- -- (290) Corporate Trust Shares .................. -- -- -- (844) T Shares ................................ -- -- -- -- ----------- ----------- ----------- ----------- Total Dividends and Distributions ....... (4,046) (14,586) (6,489) (23,256) ----------- ----------- ----------- ----------- Capital Transactions (1): Institutional Shares: Proceeds from Shares Issued ............. 1,330,225 2,229,173 1,788,758 3,267,354 Reinvestment of Cash Distributions ...... 1,387 4,993 1,828 5,216 Cost of Shares Repurchased .............. (1,414,180) (2,219,814) (1,761,388) (3,170,785) ----------- ----------- ----------- ----------- Increase (Decrease) in Net Assets from Institutional Share Transactions ... (82,568) 14,352 29,198 101,785 ----------- ----------- ----------- ----------- Corporate Trust Shares: Proceeds from Shares Issued ............. -- -- 1,709,402 3,516,733 Cost of Shares Repurchased .............. -- -- (1,385,879) (4,022,699) ----------- ----------- ----------- ----------- Increase (Decrease) in Net Assets from Corporate Trust Share Transactions . -- -- 323,523 (505,966) ----------- ----------- ----------- ----------- T Shares (2): Proceeds from Shares Issued ............. -- -- -- -- Reinvestment of Cash Distributions ...... -- -- -- -- Cost of Shares Repurchased .............. -- -- -- -- ----------- ----------- ----------- ----------- Increase in Net Assets from T Share Transactions ............... -- -- -- -- ----------- ----------- ----------- ----------- L Shares (3): Proceeds from Shares Issued ............. -- -- -- -- Reinvestment of Cash Distributions ...... -- -- -- -- Cost of Shares Repurchased .............. -- -- -- -- ----------- ----------- ----------- ----------- Increase in Net Assets from L Share Transactions ............... -- -- -- -- ----------- ----------- ----------- ----------- Increase (Decrease) in Net Assets from Share Transactions ............... (82,568) 14,352 352,721 (404,181) ----------- ----------- ----------- ----------- Total Increase (Decrease) in Net Assets ........................ (82,568) 14,352 352,798 (404,415) ----------- ----------- ----------- ----------- Net Assets: Beginning of Period ..................... 1,040,066 1,025,714 1,952,250 2,356,665 ----------- ----------- ----------- ----------- End of Period ........................... $ 957,498 $ 1,040,066 $ 2,305,048 $ 1,952,250 =========== =========== =========== ===========
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS. FOR DESCRIPTIONS OF ABBREVIATIONS AND FOOTNOTES, PLEASE SEE PAGE 28. 33
FINANCIAL HIGHLIGHTS - ------------------------------------------------------------------------------------------------------------------------------------ STI CLASSIC FUNDS FOR THE PERIOD ENDED NOVEMBER 30, 2003 (UNAUDITED) AND THE YEARS ENDED MAY 31, FOR A SHARE OUTSTANDING THROUGHOUT THE PERIOD NET ASSET NET REALIZED DIVIDENDS DISTRIBUTIONS VALUE, NET AND UNREALIZED FROM FROM TOTAL BEGINNING OF INVESTMENT GAINS (LOSSES) TOTAL FROM NET INVESTMENT REALIZED DIVIDENDS AND PERIOD INCOME ON INVESTMENTS OPERATIONS INCOME CAPITAL GAINS DISTRIBUTIONS ------------ ---------- -------------- ---------- -------------- ------------- ------------- CLASSIC INSTITUTIONAL HIGH QUALITY BOND FUND Institutional Shares 2003 (A) $10.00 $0.02(I) $(0.01)(I) $0.01 $(0.02) $ -- $(0.02) T Shares 2003 (B) $10.00 $0.01(I) $(0.01)(I) $ -- $(0.01) $ -- $(0.01) CLASSIC INSTITUTIONAL SHORT-TERM BOND FUND Institutional Shares 2003** $10.24 $0.10(I) $(0.09)(I) $0.01 $(0.10) $ -- $(0.10) 2003 10.03 0.24 0.36 0.60 (0.24) (0.15) (0.39) 2002 (C) 10.00 0.01 0.03 0.04 (0.01) -- (0.01) CLASSIC INSTITUTIONAL SUPER SHORT INCOME PLUS FUND Institutional Shares 2003** $ 2.02 $0.02(I) $(0.01)(I) $0.01 $(0.02) $ -- $(0.02) 2003 2.00 0.04 0.02 0.06 (0.04) --* (0.04) 2002 (D) 2.00 0.01 -- 0.01 (0.01) -- (0.01) T Shares 2003** $ 2.01 $0.01(I) $(0.01)(I) $ -- $(0.01) $ -- $(0.01) 2003 (E) 2.02 0.02 (0.01) 0.01 (0.02) --* (0.02) CLASSIC INSTITUTIONAL TOTAL RETURN BOND FUND Institutional Shares 2003 (F) $10.00 $0.03(I) $ --(I) $0.03 $(0.03) $ -- $(0.03) CLASSIC INSTITUTIONAL U.S. GOVERNMENT SECURITIES SUPER SHORT INCOME PLUS FUND Institutional Shares 2003** $ 2.01 $0.02(I) $(0.01)(I) $0.01 $(0.02) $ -- $(0.02) 2003 2.00 0.04 0.01 0.05 (0.04) --* (0.04) 2002 (G) 2.00 0.01 -- 0.01 (0.01) -- (0.01) L Shares 2003** $10.01 $0.06(I) $(0.06)(I) $ -- $(0.06) $ -- $(0.06) 2003 (H) 10.00 0.02 0.01 0.03 (0.02) --* (0.02) + Returns are for the period indicated and have not been annualized. * Amount represents less than $0.01 per share. ** For the six month period ended November 30, 2003. All ratios for the period have been annualized. (A) Commenced operations on October 27, 2003. All ratios have been annualized. (B) Commenced operations on November 13, 2003. All ratios have been annualized. (C) Commenced operations on May 14, 2002. All ratios have been annualized. (D) Commenced operations on April 15, 2002. All ratios have been annualized. (E) Commenced operations on October 3, 2002. All ratios have been annualized. (F) Commenced operations on October 15, 2003. All ratios have been annualized. (G) Commenced operations on April 11, 2002. All ratios have been annualized. (H) Commenced operations on April 16, 2003. All ratios have been annualized. (I) Per share data calculated using average shares method. Amounts designated as "--" are either $0 or round to $0.
34
- ------------------------------------------------------------------------------------------------------------------------------------ RATIO OF RATIO OF NET ASSET NET ASSETS, RATIO OF NET NET INVESTMENT EXPENSES TO PORTFOLIO VALUE, END TOTAL END OF EXPENSES TO INCOME TO AVERAGE NET ASSETS TURNOVER OF PERIOD RETURN+ PERIOD (000) AVERAGE NET ASSETS AVERAGE NET ASSETS (EXCLUDING WAIVERS) RATE ---------- ------- ------------ ------------------ ------------------ ------------------- --------- CLASSIC INSTITUTIONAL HIGH QUALITY BOND FUND Institutional Shares 2003 (A) $ 9.99 0.05% $ 17,102 0.64% 1.77% 0.84% 15% T Shares 2003 (B) $ 9.99 (0.02)% $ 21,698 0.82% 2.20% 1.02% 15% CLASSIC INSTITUTIONAL SHORT-TERM BOND FUND Institutional Shares 2003** $10.15 0.12% $ 21,630 0.51% 1.99% 1.01% 23% 2003 10.24 6.08 20,777 0.52 2.32 1.02 146 2002 (C) 10.03 0.41 16,176 0.57 2.60 1.07 -- CLASSIC INSTITUTIONAL SUPER SHORT INCOME PLUS FUND Institutional Shares 2003** $ 2.01 0.26% $157,091 0.31% 1.51% 0.86% 29% 2003 2.02 3.16 146,590 0.31 1.84 0.86 56 2002 (D) 2.00 0.30 33,730 0.36 2.44 0.91 30 T Shares 2003** $ 2.00 0.16% $144,749 0.51% 1.31% 0.86% 29% 2003 (E) 2.01 0.64 69,797 0.57 1.43 0.92 56 CLASSIC INSTITUTIONAL TOTAL RETURN BOND FUND Institutional Shares 2003 (F) $10.00 0.30% $ 9,832 0.55% 2.41% 0.75% 36% CLASSIC INSTITUTIONAL U.S. GOVERNMENT SECURITIES SUPER SHORT INCOME PLUS FUND Institutional Shares 2003** $ 2.00 0.26% $ 84,358 0.23% 1.51% 0.76% 58% 2003 2.01 2.80 95,277 0.23 1.76 0.76 87 2002 (G) 2.00 0.32 28,138 0.30 2.42 0.83 34 L Shares 2003** $ 9.95 0.04% $ 43,064 0.47% 1.26% 0.93% 58% 2003 (H) 10.01 0.27 23,758 0.47 0.99 1.06 87
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS. 35
FINANCIAL HIGHLIGHTS - ------------------------------------------------------------------------------------------------------------------------------------ STI CLASSIC FUNDS FOR THE PERIOD ENDED NOVEMBER 30, 2003 (UNAUDITED) AND THE YEARS ENDED MAY 31, (UNLESS OTHERWISE NOTED) FOR A SHARE OUTSTANDING THROUGHOUT THE PERIOD NET ASSET DIVIDENDS DISTRIBUTIONS VALUE, NET NET REALIZED FROM FROM BEGINNING OF INVESTMENT GAIN (LOSS) TOTAL FROM NET INVESTMENT REALIZED PERIOD INCOME ON INVESTMENTS OPERATIONS INCOME CAPITAL GAINS ------------ ---------- -------------- ---------- -------------- ------------- CLASSIC INSTITUTIONAL CASH MANAGEMENT MONEY MARKET FUND (A) Institutional Shares 2003** $1.00 $ --(C) $--(C) $ -- $ --++ $-- 2003 1.00 0.01 -- 0.01 (0.01) -- 2002 1.00 0.03 -- 0.03 (0.03) -- 2001 1.00 0.06 -- 0.06 (0.06) -- 2000 1.00 0.05 -- 0.05 (0.05) -- 1999* 1.00 0.02 -- 0.02 (0.02) -- For the years ended January 31: 1999 1.00 0.05 -- 0.05 (0.05) -- CLASSIC INSTITUTIONAL U.S. GOVERNMENT SECURITIES MONEY MARKET FUND (B) Institutional Shares 2003** $1.00 $ --(C) $--(C) $ -- $ --++ $-- 2003 1.00 0.01 -- 0.01 (0.01) -- 2002 1.00 0.03 -- 0.03 (0.03) -- 2001 1.00 0.06 -- 0.06 (0.06) -- 2000 1.00 0.05 -- 0.05 (0.05) -- 1999* 1.00 0.02 -- 0.02 (0.02) -- For the years ended January 31: 1999 1.00 0.05 -- 0.05 (0.05) -- CLASSIC INSTITUTIONAL U.S. TREASURY SECURITIES MONEY MARKET FUND Institutional Shares 2003** $1.00 $ --(C) $--(C) $ -- $ --++ $-- 2003 1.00 0.01 -- 0.01 (0.01) --++ 2002 1.00 0.02 -- 0.02 (0.02) -- 2001 1.00 0.06 -- 0.06 (0.06) -- 2000 1.00 0.05 -- 0.05 (0.05) -- 1999 1.00 0.05 -- 0.05 (0.05) -- Corporate Trust Shares 2003** $1.00 $ --(C) $--(C) $ -- $ --++ $-- 2003 1.00 0.01 -- 0.01 (0.01) --++ 2002 1.00 0.02 -- 0.02 (0.02) -- 2001 1.00 0.05 -- 0.05 (0.05) -- 2000 (D) 1.00 0.05 -- 0.05 (0.05) -- + Returns are for the period indicated and have not been annualized. (The performance in the above table does not reflect the deduction of taxes the shareholder would pay on fund distributions or redemption of fund shares.) ++ Amount represents less than $0.01 per share. * For the period February 1, 1999 to May 31, 1999. All ratios for the period have been annualized. ** For the six month period ended November 30, 2003. All ratios for the period have been annualized. (A) On May 17, 1999, the Arbor Prime Obligations Fund exchanged all of its assets and certain liabilities for shares of the Classic Institutional Cash Management Money Market Fund. The Arbor Prime Obligations Fund is the accounting survivor in this transaction, and as a result, its basis of accounting for assets and liabilities and its operating results for the periods prior to May 17, 1999 have been carried forward in these financial highlights.
36
- ------------------------------------------------------------------------------------------------------------------------------------ RATIO OF RATIO OF TOTAL NET ASSET NET ASSETS, RATIO OF NET NET INVESTMENT EXPENSES TO DIVIDENDS AND VALUE, END TOTAL END OF EXPENSES TO INCOME TO AVERAGE NET ASSETS DISTRIBUTIONS OF PERIOD RETURN+ PERIOD (000) AVERAGE NET ASSETS AVERAGE NET ASSETS (EXCLUDING WAIVERS) ------------- ---------- -------- ------------ ------------------ ------------------ ------------------- CLASSIC INSTITUTIONAL CASH MANAGEMENT MONEY MARKET FUND (A) Institutional Shares 2003** $ --++ $1.00 0.43% $2,743,702 0.25% 0.86% 0.29% 2003 (0.01) 1.00 1.46 2,985,750 0.25 1.45 0.29 2002 (0.03) 1.00 2.68 3,409,606 0.25 2.61 0.29 2001 (0.06) 1.00 6.13 3,229,400 0.25 5.91 0.30 2000 (0.05) 1.00 5.56 2,311,685 0.25 5.42 0.30 1999* (0.02) 1.00 1.58 1,888,483 0.25 4.79 0.35 For the years ended January 31: 1999 (0.05) 1.00 5.46 884,490 0.23 5.31 0.35 CLASSIC INSTITUTIONAL U.S. GOVERNMENT SECURITIES MONEY MARKET FUND (B) Institutional Shares 2003** $ --++ $1.00 0.41% $ 957,498 0.26% 0.82% 0.29% 2003 (0.01) 1.00 1.40 1,040,066 0.26 1.39 0.29 2002 (0.03) 1.00 2.61 1,025,714 0.27 2.49 0.30 2001 (0.06) 1.00 5.98 896,189 0.26 5.72 0.29 2000 (0.05) 1.00 5.39 650,626 0.25 5.27 0.29 1999* (0.02) 1.00 1.56 617,089 0.25 4.73 0.36 For the years ended January 31: 1999 (0.05) 1.00 5.30 688,031 0.23 5.18 0.36 CLASSIC INSTITUTIONAL U.S. TREASURY SECURITIES MONEY MARKET FUND Institutional Shares 2003** $ --++ $1.00 0.39% $ 682,570 0.26% 0.73% 0.29% 2003 (0.01) 1.00 1.30 653,340 0.26 1.23 0.29 2002 (0.02) 1.00 2.28 551,599 0.26 2.25 0.30 2001 (0.06) 1.00 5.74 580,227 0.27 5.44 0.30 2000 (0.05) 1.00 5.25 329,725 0.25 5.17 0.31 1999 (0.05) 1.00 4.97 283,525 0.20 4.83 0.47 Corporate Trust Shares 2003** $ --++ $1.00 0.29% $1,622,478 0.46% 0.53% 0.49% 2003 (0.01) 1.00 1.10 1,298,910 0.46 1.05 0.49 2002 (0.02) 1.00 2.08 1,805,066 0.46 2.11 0.50 2001 (0.05) 1.00 5.53 1,303,630 0.46 5.38 0.50 2000 (D) (0.05) 1.00 5.02 1,138,541 0.45 4.93 0.49 (B) On May 24, 1999, the Arbor U.S. Government Securities Money Fund exchanged all of its assets and certain liabilities for shares of the Classic Institutional U.S. Government Securities Money Market Fund. The Arbor U.S. Government Securities Money Fund is the accounting survivor in this transaction, and as a result, its basis of accounting for assets and liabilities and its operating results for the periods prior to May 24, 1999 have been carried forward in these financial highlights. (C) Per share data calculated using average shares method. (D) Commenced operations on June 3, 1999. All ratios for the period have been annualized. Amounts designated as "--" are either $0 or round to $0.
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS. 37 NOTES TO FINANCIAL STATEMENTS - -------------------------------------------------------------------------------- STI CLASSIC FUNDS NOVEMBER 30, 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 44 funds as of November 30, 2003. The financial statements presented herein are those of the Classic Institutional High Quality Bond Fund, the Classic Institutional Short-Term Bond Fund, the Classic Institutional Super Short Income Plus Fund, the Classic Institutional Total Return Bond Fund, the Classic Institutional U.S. Government Securities Super Short Income Plus Fund, the Classic Institutional Cash Management Money Market Fund, the Classic Institutional U.S. Government Securities Money Market Fund and the Classic Institutional U.S. Treasury Securities Money Market Fund (each a "Fund" and collectively the "Funds"). The Funds may offer the following share classes: Institutional shares, T shares (formerly Trust shares), Corporate Trust shares and L shares (formerly Flex shares). 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 -- 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. Money Market securities are stated at amortized cost, which approximates market value. Under this valuation method, purchase discounts and premiums are accreted and amortized ratably to maturity. 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. SECURITY TRANSACTIONS AND INVESTMENT INCOME -- Security transactions are accounted for on the date the security is purchased or sold (trade date). Interest income is recognized on an accrual basis. Costs used in determining net realized gains and losses on the sales of investment securities are those of the specific securities sold adjusted for the accretion and amortization of purchase discounts and premiums during the respective holding period. Purchase discounts and premiums on securities held by the Funds are accreted and amortized ratably to the next 38 - -------------------------------------------------------------------------------- (UNAUDITED) interest readjustment date, the date that the principal owned can be recovered through demand, or the maturity of the security and are included in interest income. REPURCHASE AGREEMENTS -- In connection with transactions involving repurchase agreements, a third party custodian bank takes possession of the underlying securities ("collateral"), the value of which exceeds the principal amount of the repurchase transaction, including accrued interest. In the event of default on the obligation to repurchase, each Fund has the right to liquidate the collateral and apply the proceeds in satisfaction of the obligation. In the event of default or bankruptcy by the counterparty to the agreement, realization and/or retention of the collateral or proceeds may be subject to legal proceedings. SECURITIES PURCHASED ON A WHEN-ISSUED BASIS -- Delivery and payment for securities that have been purchased by a Fund on a forward commitment or when-issued basis can take place up to a month or more after the transaction date. During this period, such securities are subject to market fluctuations and the fund maintains, in a segregated account with its custodian, assets with a market value equal to or greater than the amount of its purchase commitments. The purchase of securities on a when-issued or forward commitment basis may increase the volatility of a Fund's net asset value. 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. DIVIDENDS AND DISTRIBUTIONS TO SHAREHOLDERS -- Dividends and distributions to shareholders, which are determined in accordance with federal tax regulations, are recorded on the ex-dividend date. Dividends from net investment income of each of the Funds are declared daily and paid monthly. 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 June 15, 1993, and last amended September 4, 2003. Under terms of the agreement, the Funds are charged the following annual fees based upon average daily net assets: MAXIMUM ANNUAL ADVISORY FEE -------- Classic Institutional High Quality Bond Fund ......................... 0.50% Classic Institutional Short-Term Bond Fund ........................... 0.60 Classic Institutional Super Short Income Plus Fund ......................................................... 0.50 Classic Institutional Total Return Bond Fund ......................... 0.45 Classic Institutional U.S. Government Securities Super Short Income Plus Fund ...................................... 0.40 Classic Institutional Cash Management Money Market Fund ................................................. 0.20 Classic Institutional U.S. Government Securities Money Market Fund ................................................. 0.20 Classic Institutional U.S. Treasury Securities Money Market Fund ................................................. 0.20 The Investment Adviser 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. 39 NOTES TO FINANCIAL STATEMENTS (continued) - -------------------------------------------------------------------------------- STI CLASSIC FUNDS NOVEMBER 30, 2003 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 on the next $3 billion, 0.065% on the next $2 billion and 0.06% for over $10 billion. The Administrator 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. DISTRIBUTION AGREEMENT -- The Trust and SEI Investments Distribution Co. (the "Distributor") are parties to a Distribution and Service Agreement dated November 21, 1995. The Distributor will receive no fees for its distribution services under this agreement for the Institutional, Corporate Trust, and T Shares of any Fund. With respect to the L Shares of the Classic Institutional U.S. Government Securities Super Short Income Plus Fund the Distributor receives 0.40%, pursuant to a Distribution and Service Plan. The Distributor 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. SHAREHOLDER SERVICING AGREEMENT -- The Classic Institutional U.S. Treasury Securities Money Market Fund has adopted a Shareholder Services Plan for the Corporate Trust Shares. The Fund pays SunTrust Bank ("SunTrust") a monthly shareholder services fee at an annual rate of up to 0.25% of the average daily net assets of the average daily net assets of the Fund's Corporate Trust Shares, which may be used by SunTrust to provide compensation to service providers that have agreed to provide shareholder support services for their customers who own Corporate Trust Shares of the Funds. The Fund is currently paying SunTrust an annual rate of 0.20%. The Classic Institutional High Quality Bond Fund, Classic Institutional Short-Term Bond, Classic Institutional Super Short Income Plus, Classic Institutional Total Return Bond Fund, and Classic Institutional U.S. Government Securities Super Short Income Plus Funds have adopted a Shareholder Services Plan whereby each Fund pays SunTrust a monthly shareholder services fee as outlined below, which may be used by SunTrust to provide compensation to service providers that have agreed to provide shareholder support services for their customers who own shares of the Fund. SunTrust has voluntarily agreed to waive all or a portion of its fees in order to limit operating expenses. These fee waivers are voluntary and may be terminated at any time. MAXIMUM ANNUAL MAXIMUM SHAREHOLDER ANNUAL SERVICE FEE SHAREHOLDER (INSTITUTIONAL SERVICE FEE SHARES) (T SHARES) -------------- ----------- Classic Institutional High Quality Bond Fund .................................... 0.25% 0.40% Classic Institutional Short-Term Bond Fund .................................... 0.25 -- Classic Institutional Super Short Income Plus Fund ............................. 0.25 0.25 Classic Institutional Total Return Bond Fund .................................... 0.25 -- Classic Institutional U.S. Government Securities Super Short Income Plus Fund .................................... 0.25 -- 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. 40 - -------------------------------------------------------------------------------- (UNAUDITED) 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 agent shareholder service fees are based upon a monthly per account charge for the total shareholder accounts at the Trust's transfer agent. CUSTODIAN AGREEMENT -- SunTrust Bank (the "Custodian") acts as custodian for the Funds. The custodian is paid on the basis of the net assets and transaction costs of the Funds. The custodian plays no role in determining the investment policies of the Trust or which securities are to be purchased or sold in the Funds. OTHER -- Certain officers of the Trust are also officers of the Adviser, 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 SunTrust Robinson Humphrey, a division of SunTrust Capital Markets, Inc. which is a direct non-bank subsidiary of SunTrust Banks, Inc. to act as an agent in placing repurchase agreements for the Trust. For the six month period ended November 30, 2003, the following Funds paid SunTrust Robinson Humphrey, through a reduction in the yield, earned by the Funds on those repurchase agreements: FEES -------- Classic Institutional Super Short Income Plus Fund ......................................................... $ 7,581 Classic Institutional U.S. Government Securities Super Short Income Plus Fund ...................................... 4,858 Classic Institutional Cash Management Money Market Fund ....................................................... 122,981 Classic Institutional U.S. Government Securities Money Market Fund ................................................. 71,493 Classic Institutional U.S. Treasury Securities Money Market Fund ................................................. 399,367 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 six month period ended November 30, 2003, were as follows: PURCHASES SALES (000) (000) --------- ------- Classic Institutional High Quality Bond Fund .......................................... $ 3,480 $ -- Classic Institutional Short-Term Bond Fund .......................................... 2,933 2,226 Classic Institutional Super Short Income Plus Fund .................................. 21,868 11,882 Classic Institutional Total Return Bond Fund .......................................... 3,152 -- The cost of purchases and proceeds from sales of U.S. Government securities, for the six month period ended November 30, 2003, were as follows: PURCHASES SALES (000) (000) --------- ------- Classic Institutional High Quality Bond Fund .......................................... $37,847 $ 3,577 Classic Institutional Short-Term Bond Fund .......................................... 3,421 2,435 Classic Institutional Super Short Income Plus Fund ................................... 22,810 16,873 Classic Institutional Total Return Bond Fund .......................................... 8,206 2,609 Classic Institutional U.S. Government Securities Super Short Income Plus Fund .......................................... 26,029 35,145 5. 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. 41 NOTES TO FINANCIAL STATEMENTS (continued) - -------------------------------------------------------------------------------- STI CLASSIC FUNDS NOVEMBER 30, 2003 At November 30, 2003, the aggregate gross unrealized appreciation and depreciation for securities held by the Funds was as follows:
AGGREGATE AGGREGATE NET GROSS GROSS UNREALIZED UNREALIZED UNREALIZED APPRECIATION APPRECIATION DEPRECIATION (DEPRECIATION) (000) (000) (000) ------------ ------------ -------------- Classic Institutional High Quality Bond Fund $ 23 $ (96) $ (73) Classic Institutional Short-Term Bond Fund 145 (40) 105 Classic Institutional Super Short Income Plus Fund 543 (505) 38 Classic Institutional Total Return Bond Fund 12 (48) (36) Classic Institutional U.S. Government Securities Super Short Income Plus Fund 119 (240) (121)
42 This page intentionally left blank NOTES TO FINANCIAL STATEMENTS (continued) - -------------------------------------------------------------------------------- STI CLASSIC FUNDS NOVEMBER 30, 2003 6. Capital Share Transactions: Capital share transactions for the Funds were as follows (000):
CLASSIC CLASSIC CLASSIC INSTITUTIONAL INSTITUTIONAL INSTITUTIONAL HIGH QUALITY SHORT-TERM SUPER SHORT BOND BOND INCOME PLUS FUND FUND FUND --------------------- ------------------------- ------------------------ 10/27/03- 06/01/03- 06/01/02- 06/01/03- 06/01/02- 11/30/03 11/30/03 05/31/03 11/30/03 05/31/03 ----------- ----------- ----------- ----------- ---------- Shares Issued and Redeemed: Institutional Shares: Shares Issued ............... 1,711 657 1,113 48,553 94,687 Shares Issued in Lieu of Cash Distributions ..... 1 9 44 85 62 Shares Redeemed ............. -- (563) (741) (43,015) (39,084) ----------- ---------- --------- --------- --------- Net Institutional Share Transactions ........ 1,712 103 416 5,623 55,665 ----------- ---------- --------- --------- --------- T Shares: Shares Issued ............... 2,173 -- -- 51,557 37,979 Shares Issued in Lieu of Cash Distributions ........ -- -- -- 44 18 Shares Redeemed ............. -- -- -- (13,944) (3,309) ----------- ---------- --------- --------- --------- Net T Share Transactions .... 2,173 -- -- 37,657 34,688 ----------- ---------- --------- --------- --------- L Shares: Shares Issued ............... -- -- -- -- -- Shares Issued in Lieu of Cash Distributions ........ -- -- -- -- -- Shares Redeemed ............. -- -- -- -- -- ----------- ---------- --------- --------- --------- Net L Share Transactions .... -- -- -- -- -- ----------- ---------- --------- --------- --------- Net Change in Capital Shares 3,885 103 416 43,280 90,353 =========== ========== ========= ========= =========
44 - -------------------------------------------------------------------------------- (UNAUDITED)
CLASSIC CLASSIC INSTITUTIONAL INSTITUTIONAL TOTAL RETURN U.S. GOVERNMENT SECURITIES BOND SUPER SHORT INCOME PLUS FUND FUND ------------------- -------------------------- 10/15/03- 06/01/03- 06/01/02- 11/30/03 11/30/03 05/31/03 ----------- ---------- ---------- Shares Issued and Redeemed: Institutional Shares: Shares Issued ................... 985 17,973 61,485 Shares Issued in Lieu of Cash Distributions ......... -- 185 455 Shares Redeemed ................. (2) (23,327) (28,680) ----------- --------- --------- Net Institutional Share Transactions ............ 983 (5,169) 33,260 ----------- --------- --------- T Shares: Shares Issued ................... -- -- -- Shares Issued in Lieu of Cash Distributions ............ -- -- -- Shares Redeemed ................. -- -- -- ----------- --------- --------- Net T Share Transactions ........ -- -- -- ----------- --------- --------- L Shares: Shares Issued ................... -- 6,512 2,509 Shares Issued in Lieu of Cash Distributions ............ -- 24 1 Shares Redeemed ................. -- (4,581) (137) ----------- --------- --------- Net L Share Transactions ........ -- 1,955 2,373 ----------- --------- --------- Net Change in Capital Shares .... 983 (3,214) 35,633 =========== ========= =========
45 NOTES TO FINANCIAL STATEMENTS (concluded) - -------------------------------------------------------------------------------- STI CLASSIC FUNDS NOVEMBER 30, 2003 (UNAUDITED)
CLASSIC CLASSIC CLASSIC INSTITUTIONAL INSTITUTIONAL INSTITUTIONAL CASH MANAGEMENT U.S. GOVERNMENT U.S. TREASURY MONEY MARKET SECURITIES MONEY SECURITIES MONEY FUND MARKET FUND MARKET FUND ------------------------ ------------------------ ----------------------- 06/01/03- 06/01/02- 06/01/03- 06/01/02- 06/01/03- 06/01/02- 11/30/03 05/31/03 11/30/03 05/31/03 11/30/03 05/31/03 --------- --------- --------- --------- --------- --------- Shares Issued and Redeemed: Institutional Shares: Shares Issued ................... 3,741,361 8,275,886 1,330,225 2,229,173 1,788,758 3,267,354 Shares Issued in Lieu of Cash Distributions ......... 7,724 28,135 1,387 4,993 1,828 5,216 Shares Redeemed ................. (3,991,136) (8,727,887) (1,414,180) (2,219,814) (1,761,388) (3,170,785) ---------- ---------- ---------- ---------- ---------- ---------- Net Institutional Share Transactions .............. (242,051) (423,866) (82,568) 14,352 29,198 101,785 ---------- ---------- ---------- ---------- ---------- ---------- Corporate Trust Shares: Shares Issued ................... -- -- -- -- 1,709,402 3,516,733 Shares Redeemed ................. -- -- -- -- (1,385,879) (4,022,699) ---------- ---------- ---------- ---------- ---------- ---------- Net Corporate Trust Share Transactions .............. -- -- -- -- 323,523 (505,966) ---------- ---------- ---------- ---------- ---------- ---------- Net Change in Capital Shares ...... (242,051) (423,866) (82,568) 14,352 352,721 (404,181) ========== ========== ========== ========== ========== ==========
7. Concentrations/Risk: The Classic Institutional Cash Management Money Market Fund, the Classic Institutional U.S. Government Securities Money Market Fund and the Classic Institutional U.S. Treasury Securities Money Market Fund invest primarily in money market instruments maturing in 397 days or less whose ratings are within one of the two highest ratings categories assigned by a nationally recognized statistical rating agency, or, if not rated, are believed to be of comparable quality. The ability of the issuers of the securities held by the Fund to meet their obligations may be affected by economic developments in a specific industry, state or region. Certain securities are backed by letters of credit from various financial institutions and financial guaranty assurance agencies. These letters of credit enhance the credit quality of the individual securities; however, if any of the financial institutions or financial guaranty assurance agencies' credit quality should deteriorate, it could cause the individual security's credit quality to change. Additionally, if any of the Funds concentrate their letters of credit in any one financial institution, the risk of credit quality deterioration increases. In the normal course of business, the Funds enter into contracts that provide general indemnifications. The Funds' maximum exposure under these arrangements is dependent on future claims that may be made against the Funds and, therefore, cannot be estimated; however, based on experience, the risk of loss from such claims is considered remote. 46 - -------------------------------------------------------------------------------- (UNAUDITED) 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 33 1/3% of the total asset value of the Fund (including the loan collateral). No Fund will lend portfolio securities to its investment adviser or its affiliates unless it has applied for and received specific authority to do so from the 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. 47 NOTES - -------------------------------------------------------------------------------- NOTES - -------------------------------------------------------------------------------- INVESTMENT ADVISER Trusco Capital Management, Inc. STI Classic Funds are not deposits, are not insured or guaranteed by the FDIC or any other government agency, and are not endorsed by and do not constitute obligations of SunTrust Banks, Inc. or any other of its affiliates. Investment in the Funds involves risk, including the possible loss of principal. There is no guarantee that any STI Classic Fund will achieve its investment objective. The STI Classic Funds are advised by an affiliate of SunTrust Banks, Inc. DISTRIBUTOR SEI Investments Distribution Co. This information must be preceded or accompanied by a current prospectus for each Fund described. STI-SA-004-0400 ITEM 2. CODE OF ETHICS. The registrant has adopted a code of ethics that applies to the registrant's principal executive officer, principal financial officer, comptroller or principal accounting officer, and any person who performs a similar function. ITEM 3. AUDIT COMMITTEE FINANCIAL EXPERT. Not applicable - only effective for annual reports. ITEM 4. PRINCIPAL ACCOUNTANT FEES AND SERVICES. Not applicable - only effective for annual reports for 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. ITEMS 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 control over financial reporting that occurred during the registrant's last fiscal half-year that has materially affected, or is reasonably likely to materially affect, the registrants internal control over financial reporting. ITEMS 10. EXHIBITS. (a) 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 F. Volk -------------------------------------- James F. Volk, President Date 01/23/04 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 F. Volk -------------------------------------- James F. Volk, President Date 01/23/04 By (Signature and Title)* /s/ Jennifer E. Spratley -------------------------------------- Jennifer E. Spratley, CFO Date 01/23/04 * Print the name and title of each signing officer under his or her signature. EX-99.CERT 3 sticlassic302cert_jv.txt 302 CERTIFICATION_JV CERTIFICATION Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 I, James F. Volk, certify that: 1. I have reviewed this report on Form N-CSR of the 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 officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940) for the registrant and have: (a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, 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) [intentionally left blank]; (c) Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of a date within 90 days prior to the filing date of this report based on such evaluation; and (d) Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal half-year (the registrant's second fiscal half-year in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and 5. The registrant's other certifying officer(s) and I have disclosed 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 and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize, and report financial information; and (b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting. Date: January 23, 2004 /s/ James F. Volk - ----------------- James F. Volk President EX-99.CERT 4 sticlassic302cert_js.txt 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 the 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 officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940) for the registrant and have: (a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, 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) [intentionally left blank]; (c) Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of a date within 90 days prior to the filing date of this report based on such evaluation; and (d) Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal half-year (the registrant's second fiscal half-year in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and 5. The registrant's other certifying officer(s) and I have disclosed 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 and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize, and report financial information; and (b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting. Date: January 23, 2004 /s/ Jennifer E. Spratley - ----------------------- Jennifer E. Spratley CFO EX-99.906CERT 5 sticlassic906_jv.txt 906 CERTIFICATION_JV CERTIFICATION Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 The undersigned, the President of the STI Classic Funds (the "Funds"), with respect to the Form N-CSR for the period ended November 30, 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 Fund. Dated: January 23, 2004 /s/ James F. Volk ----------------- James F. Volk EX-99.906CERT 6 sticlassic906_js.txt 906 CERTIFICATION_JS CERTIFICATION Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 The undersigned, the Chief Financial Officer of the STI Classic Funds (the "Funds"), with respect to the Form N-CSR for the period ended November 30, 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 Fund. Dated: January 23, 2004 /s/ Jennifer E. Spratley ------------------------ Jennifer E. Spratley -----END PRIVACY-ENHANCED MESSAGE-----