-----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, K/3bAgXOzb4jjEifZ8hbfdInEXDGTRW5k++/UIsBK5cpATAbPAyGZDZwU9ary7Fy eGAZnupxyegxzsL+Y/Osaw== 0000935069-04-000150.txt : 20040130 0000935069-04-000150.hdr.sgml : 20040130 20040130145015 ACCESSION NUMBER: 0000935069-04-000150 CONFORMED SUBMISSION TYPE: N-CSRS PUBLIC DOCUMENT COUNT: 5 CONFORMED PERIOD OF REPORT: 20031130 FILED AS OF DATE: 20040130 EFFECTIVENESS DATE: 20040130 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: 04555547 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 sticlassicfixedcombined.txt STI CLASSIC FIXED INCOME 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 FIXED INCOME FUNDS ................................................................ A Family of Mutual Funds 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 FIXED INCOME FUNDS NOVEMBER 30, 2003 FLORIDA TAX-EXEMPT BOND FUND - -------------------------------------------------------------------------------- FACE AMOUNT (000) VALUE (000) - -------------------------------------------------------------------------------- MUNICIPAL BONDS (86.5%) FLORIDA (76.5%) Alachua County, Health Facility Authority, Shands Teaching Hospital Project, Ser B, RB, MBIA (C) 1.050%, 12/01/26 $3,000 $ 3,000 Brevard County, Sales Tax Authority, RB, MBIA Prerefunded @ 101 (F) 5.700%, 12/01/04 100 106 Brevard County, School Board, COP, AMBAC Callable 07/01/12 @ 100 5.500%, 07/01/17 1,360 1,516 5.500%, 07/01/18 3,015 3,341 Brevard County, Utility Authority, RB, FGIC Callable 03/01/12 @ 100 5.250%, 03/01/13 1,000 1,115 5.250%, 03/01/14 1,000 1,105 Broward County, Port Facilities Authority, Ser C, RB, AMT, MBIA 5.375%, 09/01/08 3,360 3,769 Broward County, School Board, COP, MBIA Callable 07/01/13 @ 100 5.250%, 07/01/15 1,750 1,951 Collier County, Water-Sewer District, Ser B, RB, FSA Callable 07/01/13 @ 100 5.500%, 07/01/16 2,125 2,409 Dade County, Aviation Authority, Ser A, RB, AMBAC Callable 10/01/05 @ 102 6.000%, 10/01/09 500 550 Dade County, Ser CC, GO, AMBAC 7.125%, 10/01/15 1,000 1,285 Daytona Beach, Utility Systems Authority, Ser D, RB, FSA Callable 11/15/12 @ 100 5.250%, 11/15/15 1,000 1,110 Deerfield Beach, Water & Sewer Authority, Refunding & Improvement Project, RB, FGIC 6.125%, 10/01/06 250 267 - -------------------------------------------------------------------------------- FACE AMOUNT (000) VALUE (000) - -------------------------------------------------------------------------------- Escambia County, Sales Tax Authority, RB, AMBAC Callable 10/01/12 @ 101 5.250%, 10/01/15 $ 2,165 $ 2,416 Florida State, Board of Education, Capital Outlay, Public Education Project, Ser B, GO Callable 06/01/08 @ 101 5.250%, 06/01/11 1,000 1,111 Florida State, Board of Education, Capital Outlay, Public Education Project, Ser B, GO Callable 06/01/11 @ 101 5.500%, 06/01/15 3,000 3,361 Florida State, Board of Education, Capital Outlay, Public Education Project, Ser B, GO, FGIC Callable 06/01/12 @ 101 5.375%, 06/01/18 2,130 2,353 Florida State, Board of Education, Capital Outlay, Public Education Project, Ser C, GO Callable 06/01/05 @ 101 5.400%, 06/01/10 2,745 2,930 Florida State, Board of Education, Capital Outlay, Public Education Project, Ser D, GO Callable 06/01/12 @ 100 5.375%, 06/01/15 1,535 1,714 Florida State, Board of Education, Capital Outlay, Public Education Project, Ser D, GO Callable 06/01/10 @ 101 5.625%, 06/01/15 1,235 1,395 5.500%, 06/01/14 790 884 Florida State, Board of Education, Capital Outlay, Ser C, GO, ETM Callable 01/05/04 @ 100 7.100%, 06/01/07 190 191 Florida State, Board of Education, Lottery Revenue, Ser A, RB, FGIC Callable 07/01/10 @ 101 6.000%, 07/01/12 1,295 1,509 Florida State, Board of Education, Lottery Revenue, Ser A, RB, FGIC Callable 07/01/12 @ 101 5.375%, 07/01/15 3,500 3,937 Florida State, Board of Education, Lottery Revenue, Ser B, RB, FGIC Callable 07/01/10 @ 101 5.500%, 07/01/12 4,050 4,558 2 - -------------------------------------------------------------------------------- (UNAUDITED) - -------------------------------------------------------------------------------- FACE AMOUNT (000) VALUE (000) - -------------------------------------------------------------------------------- Florida State, Board of Education, Public Education Project, Ser H, GO, FSA 5.250%, 06/01/11 $2,150 $ 2,437 Florida State, Boynton Beach, Utility System Authority, RB, FGIC 5.500%, 11/01/16 1,310 1,514 5.375%, 11/01/14 2,000 2,287 Florida State, Division of Bond Finance, Department of General Services, Department of Environmental Protection & Preservation, Ser 2000-A, RB, FGIC Callable 07/01/09 @ 101 5.375%, 07/01/11 2,130 2,393 Florida State, Division of Bond Finance, Department of General Services, Department of Environmental Protection & Preservation, Ser 2000-A, RB, MBIA 6.000%, 07/01/06 1,000 1,108 Florida State, Housing Financing Authority, Homeowner Mortgage Project, Ser 7, RB, AMT, FSA Callable 07/01/09 @ 100 5.200%, 01/01/31 685 714 Florida State, Jea-Johns River Power Park System, Issue 2 - 17th Ser, RB 5.250%, 10/01/10 2,000 2,262 Florida State, Municipal Loan Council, Ser A, RB, MBIA 5.000%, 05/01/12 2,165 2,391 Florida State, Municipal Power Agency, RB, AMBAC (C) 0.900%, 10/01/30 3,125 3,125 Florida State, Turnpike Authority, Department of Transportation Project, Ser B, RB, AMBAC Callable 07/01/13 @ 101 5.250%, 07/01/14 2,215 2,494 Greater Orlando, Aviation Authority, Airport Facilities, RB, AMT, FGIC 5.500%, 10/01/17 1,810 2,021 5.250%, 10/01/13 725 795 Hillsborough County, Aviation Authority, Tampa International Airport Project, Ser A, RB, MBIA Callable 10/01/13 @ 100 5.500%, 10/01/15 3,000 3,314 - -------------------------------------------------------------------------------- FACE AMOUNT (000) VALUE (000) - -------------------------------------------------------------------------------- Hillsborough County, Industrial Development Authority, University Community Hospital Project, RB, MBIA 6.500%, 08/15/19 $ 145 $ 179 Jacksonville, Electric Authority, Electrical Systems Project, Ser 3-A, RB Callable 10/01/07 @ 101 5.250%, 10/01/13 1,000 1,111 Jacksonville, Sales Tax Revenue, RB, AMBAC Callable 10/01/11 @ 100 5.500%, 10/01/13 1,435 1,616 5.500%, 10/01/14 1,200 1,350 5.500%, 10/01/15 1,550 1,744 Kissimmee, Utility Authority Electrical Systems, Refunding & Improvement Project, RB, FSA 5.250%, 10/01/10 2,000 2,278 Lakeland, Electric & Water Authority, First Lien, Ser C, RB, FSA 6.050%, 10/01/07 1,000 1,146 Lakeland, Utility Tax Authority, Ser A, RB, FGIC Prerefunded @ 102 (F) 5.700%, 10/01/04 100 106 Lee County, Industrial Development Authority, Bonita Springs Utilities Project, RB, AMT, MBIA Callable 11/01/06 @ 101 5.750%, 11/01/10 1,480 1,641 Lee County, Memorial Health Systems Hospital, Ser A, RB, FSA Callable 04/01/12 @ 100 5.750%, 04/01/15 1,000 1,131 Lee County, Transportation Facilities Authority, Ser A, RB, AMBAC Callable 10/01/11 @ 100 5.500%, 10/01/13 2,000 2,252 Miami, Parking Facilities Authority, RB, MBIA 5.250%, 10/01/15 1,000 1,131 Miami-Dade County, Aviation Authority, Miami International Airport Project, Ser C, RB, MBIA 5.000%, 10/01/09 1,000 1,117 Ocala, Capital Improvements, RB, AMBAC Callable 10/01/13 @ 100 5.375%, 10/01/17 1,610 1,800 5.375%, 10/01/18 1,700 1,887 3 STATEMENT OF NET ASSETS - -------------------------------------------------------------------------------- STI CLASSIC FIXED INCOME FUNDS NOVEMBER 30, 2003 FLORIDA TAX-EXEMPT BOND FUND--CONCLUDED - -------------------------------------------------------------------------------- FACE AMOUNT (000) VALUE (000) - -------------------------------------------------------------------------------- Orange County, Health Facilities Authority, Ser A, RB, ETM, MBIA 6.250%, 10/01/07 $1,120 $ 1,296 Orange County, Health Facilities Authority, Ser C, RB, ETM, MBIA 6.250%, 10/01/16 4,855 5,921 Orange County, School Board Certificate Partnership, Ser A, COP, MBIA Callable 08/01/12 @ 100 5.500%, 08/01/18 2,335 2,589 Orlando, Utilities Commission Water & Sewer Authority, Sub-Ser D, RB, ETM 6.750%, 10/01/17 5,385 6,718 Osceola County, Tourist Development Tax Authority, Ser A, RB, FGIC Callable 10/01/12 @ 100 5.500%, 10/01/15 1,000 1,130 Palm Beach County, Criminal Justice Facility, RB 5.000%, 06/01/15 1,865 2,061 Palm Beach County, Land Acquisition Program Authority, Ser A, GO Callable 06/01/11 @ 100 5.500%, 06/01/16 1,200 1,353 5.375%, 06/01/13 2,260 2,538 5.375%, 06/01/14 1,050 1,172 Palm Beach County, Recreational & Cultural Facilities, GO Callable 07/01/13 @ 100 5.000%, 07/01/19 1,395 1,487 Palm Beach County, School Board Authority, Ser C, COP, FSA Callable 08/01/12 @ 100 5.500%, 08/01/14 2,735 3,080 5.500%, 08/01/19 5,305 5,859 Palm Beach County, Solid Waste Authority, Ser A, RB, ETM, AMBAC 6.000%, 10/01/09 300 355 Pensacola, Airport Authority, Ser A, RB, AMT, MBIA 6.250%, 10/01/09 505 587 Pensacola, Airport Authority, Ser A, RB, AMT, MBIA Callable 10/01/08 @ 102 6.000%, 10/01/12 1,075 1,212 Plant City, Utility Systems Authority, Refunding & Improvements Project, RB, MBIA 6.000%, 10/01/15 400 482 - -------------------------------------------------------------------------------- FACE AMOUNT (000) VALUE (000) - -------------------------------------------------------------------------------- Polk County, Utility Systems Authority, RB, ETM, FGIC 6.000%, 10/01/08 $2,250 $ 2,513 Polk County, Utility Systems Authority, RB, FGIC Callable 10/01/13 @ 100 5.250%, 10/01/19 3,270 3,563 5.250%, 10/01/20 2,940 3,187 Port Orange, Water & Sewer Authority, RB, AMBAC Callable 10/01/12 @ 101 5.000%, 10/01/16 1,345 1,459 Reedy Creek, Improvements District, Ser 1, RB, MBIA 6.000%, 10/01/04 2,495 2,596 6.000%, 10/01/05 2,645 2,867 Sarasota County, Public Hospitals Board, Sarasota Memorial Hospital, Ser B, RB, MBIA 5.250%, 07/01/14 2,000 2,230 Suwannee County, Health Facilities Authority, Shands Teaching Hospital, Ser B, RB, MBIA (C) 1.050%, 12/01/26 2,500 2,500 Tampa, Guaranteed Entitlement Authority, RB, AMBAC 6.000%, 10/01/18 500 590 Tampa, Sales Tax Authority, Ser A, RB, AMBAC Callable 10/01/11 @ 101 5.375%, 10/01/14 1,640 1,831 Volusia County, Health Facility Authority, Aces Pooled Hospital Loan Program, RB, FGIC (C) 1.060%, 11/01/15 2,350 2,350 -------- 158,753 -------- PUERTO RICO (10.0%) Puerto Rico Commonwealth, Electric Power Authority, RB, MBIA 5.000%, 07/01/20 2,000 2,192 Puerto Rico Commonwealth, Government Development Authority, RB, MBIA (C) Callable 12/01/03 @ 100 1.010%, 12/01/15 7,000 7,000 Puerto Rico Commonwealth, Municipal Finance Agency, Ser A, RB, FSA Callable 08/01/12 @ 100 5.250%, 08/01/14 4,330 4,841 5.250%, 08/01/16 1,020 1,130 4 - -------------------------------------------------------------------------------- (UNAUDITED) - -------------------------------------------------------------------------------- SHARES/FACE AMOUNT (000) VALUE (000) - -------------------------------------------------------------------------------- Puerto Rico Commonwealth, Public Buildings Authority, Government Facilities Project, Ser A, RB, ETM, AMBAC 6.750%, 07/01/05 $3,000 $ 3,257 Puerto Rico Commonwealth, Public Improvements Project, Ser A, GO, FGIC 5.500%, 07/01/11 1,000 1,159 Puerto Rico Commonwealth, Public Improvements Project, Ser A, GO, MBIA 5.500%, 07/01/18 1,000 1,159 -------- 20,738 -------- Total Municipal Bonds (Cost $173,357) 179,491 -------- CASH EQUIVALENTS (9.5%) Federated Tax Free Reserve Fund 9,659,885 9,660 SEI Tax Exempt Trust, Institutional Tax Free Fund 9,918,268 9,918 -------- Total Cash Equivalents (Cost $19,578) 19,578 -------- REPURCHASE AGREEMENT (3.1%) Lehman Brothers 0.975%, dated 11/28/03, to be repurchased on 12/01/03, repurchase price $6,369,943 (collateralized by U.S.Treasury Notes; total market value $6,497,595) (G) $6,369 6,369 -------- Total Repurchase Agreement (Cost $6,369) 6,369 -------- Total Investments (99.1%) (Cost $199,304) 205,438 -------- OTHER ASSETS AND LIABILITIES (0.9%) Investment Advisory Fees Payable (100) Distribution Fees Payable (16) Administration Fees Payable (12) Custody Fees Payable (3) Other Assets and Liabilities, Net 2,013 -------- Total Other Assets and Liabilities 1,882 -------- - -------------------------------------------------------------------------------- VALUE (000) - -------------------------------------------------------------------------------- NET ASSETS: Paid in Capital -- T Shares (unlimited authorization -- no par value) based on 14,993,275 outstanding shares of beneficial interest $161,422 Paid in Capital -- A Shares (unlimited authorization -- no par value) based on 518,099 outstanding shares of beneficial interest 5,551 Paid in Capital -- L Shares (unlimited authorization -- no par value) based on 2,682,833 outstanding shares of beneficial interest 29,549 Undistributed net investment income 11 Accumulated net realized gain on investments 4,653 Net unrealized appreciation on investments 6,134 -------- Total Net Assets (100.0%) $207,320 ======== Net Asset Value, Offering and Redemption Price Per Share -- T Shares ($170,790,189 / 14,993,275 shares) $11.39 ======== Net Asset Value and Redemption Price Per Share -- A Shares ($5,902,646 / 518,099 shares) $11.39 ======== Maximum Offering Price Per Share -- A Shares ($11.39 / 96.25%) $11.83 ======== Net Asset Value and Offering Price Per Share -- L Shares (1) ($30,627,134 / 2,682,833 shares) $11.42 ======== THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS. FOR DESCRIPTIONS OF ABBREVIATIONS AND FOOTNOTES, PLEASE SEE PAGE 48. 5 STATEMENT OF NET ASSETS - -------------------------------------------------------------------------------- STI CLASSIC FIXED INCOME FUNDS NOVEMBER 30, 2003 GEORGIA TAX-EXEMPT BOND FUND - -------------------------------------------------------------------------------- FACE AMOUNT (000) VALUE (000) - -------------------------------------------------------------------------------- MUNICIPAL BONDS (99.9%) GEORGIA (95.2%) Atlanta & Fulton Counties, Recreational Authority, Park Improvement, RB, AMBAC Callable 12/01/10 @ 101 5.500%, 12/01/13 $1,005 $ 1,137 Atlanta, Water & Sewer, RB, ETM 6.000%, 01/01/11 1,000 1,183 Atlanta, Water & Wastewater, Ser C, RB, FSA (C) 1.080%, 11/01/41 2,650 2,650 Augusta, Water & Sewer, RB, FSA Callable 10/01/12 @ 100 5.250%, 10/01/21 1,250 1,339 Brunswick, Water & Sewer, Refunding & Improvement Project, RB, MBIA 6.100%, 10/01/14 1,000 1,204 Burke County, Development Authority, Pollution Control, Vogtle Project, RB (C) 1.280%, 10/01/32 1,600 1,600 1.150%, 10/01/32 3,775 3,775 Carroll County, Water & Sewer Authority, RB, AMBAC Callable 07/01/12 @ 101 5.250%, 07/01/21 1,115 1,197 Central Valdosta, Development Authority, Lowndes County Judicial Project, RB (H) Callable 06/01/13 @ 102 5.250%, 06/01/21 1,885 2,048 Clarke County, Hospital Authority, Athens Regional Medical Control Project, RB, MBIA 5.375%, 01/01/07 1,425 1,570 Cobb County & Marietta, Water Authority, RB Callable 11/01/12 @ 102 5.500%, 11/01/13 1,560 1,809 Cobb County, Hospital Authority, Refunding & Improvement Project, RB, AMBAC 5.250%, 04/01/13 1,965 2,207 Cobb-Marietta County, Coliseum & Expo Project, RB, MBIA 5.625%, 10/01/26 2,400 2,723 5.500%, 10/01/12 940 1,082 Dalton, Utilities, RB, MBIA 6.000%, 01/01/08 3,240 3,703 - -------------------------------------------------------------------------------- FACE AMOUNT (000) VALUE (000) - -------------------------------------------------------------------------------- DeKalb County, Development Authority, Emory University Project, Ser A, RB 5.375%, 11/01/05 $1,650 $ 1,775 DeKalb County, School District, Ser A, GO, ETM 6.250%, 07/01/11 1,500 1,812 DeKalb County, Water & Sewer Authority, RB Callable 10/01/10 @ 101 5.250%, 10/01/12 1,000 1,113 Douglasville-Douglas County, Water & Sewer Authority, RB, AMBAC 5.625%, 06/01/15 1,390 1,611 Floyd County, Sales Tax, GO 3.500%, 01/01/06 2,000 2,080 Forsyth County, Hospital Authority, Baptist Health Care System Project, RB, ETM Callable 10/01/08 @ 102 6.375%, 10/01/28 1,000 1,218 Forsyth County, School District, GO Callable 02/01/10 @ 102 6.000%, 02/01/15 1,000 1,158 5.750%, 02/01/11 3,000 3,477 Fulton County, Development Authority, Klaus Parking & Family Housing Projects, RB, MBIA 5.000%, 11/01/12 1,635 1,819 Fulton County, Development Authority, Klaus Parking & Family Housing Projects, RB, MBIA Callable 11/01/13 @ 100 5.250%, 11/01/15 2,535 2,830 Fulton County, School District, GO 6.375%, 05/01/17 1,330 1,645 5.500%, 01/01/21 400 455 5.375%, 01/01/17 1,500 1,705 5.250%, 01/01/12 1,000 1,128 Fulton County, Water & Sewer, RB, ETM, FGIC 6.375%, 01/01/14 1,000 1,209 Georgia State, Association of County Commissioners, Leasing Program, Public Purpose Project, COP Callable 04/01/14 @ 102 5.250%, 04/01/21 2,680 2,911 5.250%, 04/01/24 1,850 1,966 6 - -------------------------------------------------------------------------------- (UNAUDITED) - -------------------------------------------------------------------------------- FACE AMOUNT (000) VALUE (000) - -------------------------------------------------------------------------------- Georgia State, Municipal Electric Authority, Ser B, RB, MBIA 6.375%, 01/01/16 $2,000 $ 2,451 Georgia State, Municipal Electric Authority, Combined Cycle Project, Ser A, RB, MBIA Callable 11/01/13 @ 100 5.250%, 11/01/15 2,500 2,782 Georgia State, Municipal Electric Authority, RB, ETM Callable 01/05/04 @ 100 8.000%, 01/01/15 1,900 2,564 Georgia State, Municipal Electric Authority, Ser B, RB, ETM, MBIA 5.700%, 01/01/19 1,000 1,151 Georgia State, Municipal Electric Authority, Ser B, RB, FSA 6.250%, 01/01/17 2,000 2,437 Georgia State, Private Colleges & Universities Facilities Authority, Mercer University Project, RB, ETM, MBIA 6.400%, 11/01/11 1,675 2,014 Georgia State, Ser D, GO Callable 11/01/11 @ 100 5.000%, 11/01/15 1,000 1,092 Gwinnett County, Development Authority, Civic & Cultural Center Project, RB 1.040%, 09/01/31 4,000 4,000 Gwinnett County, School District, Ser A, GO 6.400%, 02/01/12 1,000 1,216 Gwinnett County, School District, Ser B, GO 6.400%, 02/01/07 1,500 1,705 Henry County, Hospital Authority, Henry Medical Center Project, RB, AMBAC Prerefunded @ 102 (F) 5.500%, 07/01/07 1,640 1,873 Henry County, School District, Ser A, GO 6.450%, 08/01/11 500 600 Henry County, Water & Sewer, RB, AMBAC 6.150%, 02/01/20 2,465 2,990 Henry County, Water & Sewer, RB, FGIC 6.000%, 02/01/18 1,055 1,261 5.625%, 02/01/16 940 1,088 - -------------------------------------------------------------------------------- FACE AMOUNT (000) VALUE (000) - -------------------------------------------------------------------------------- Henry County, Water & Sewer, RB, FGIC Callable 02/02/10 @ 101 5.625%, 02/01/30 $1,750 $ 1,917 Medical Center Hospital Authority, Columbus Regional Health Care System, RB, MBIA Prerefunded @ 102 (F) 6.000%, 08/01/05 1,340 1,470 Meriwether County, School District, GO, FSA 7.000%, 02/01/06 740 824 Metropolitan Atlanta, Rapid Transportation Authority, Ser E, RB, ETM Callable 01/05/04 @ 100 7.000%, 07/01/11 3,230 3,999 Metropolitan Atlanta, Rapid Transportation Authority, Ser N, RB 6.000%, 07/01/07 1,000 1,133 Milledgeville, Water & Sewer, RB, FSA 6.000%, 12/01/16 1,000 1,198 Newnan, Hospital Authority, Newnan Hospital Project, RB, MBIA Callable 01/01/13 @ 100 5.500%, 01/01/16 2,435 2,719 Newton County, Hospital Authority, Newton Health Systems Project, RB, AMBAC Callable 02/01/10 @ 101 5.750%, 02/01/11 780 885 5.750%, 02/01/12 825 930 Oconee County, Industrial Development Authority, OIIT Project, GO (H) Callable 07/01/13 @ 100 5.250%, 07/01/23 1,295 1,359 Paulding County, School District, GO, MBIA 6.000%, 02/01/10 1,000 1,171 Paulding County, School District, Ser A, GO 6.625%, 02/01/07 1,000 1,141 6.625%, 02/01/08 525 613 Savannah, Water & Sewer Authority, RB, ETM Callable 06/01/04 @ 100 6.450%, 12/01/04 1,000 1,053 7 STATEMENT OF NET ASSETS - -------------------------------------------------------------------------------- STI CLASSIC FIXED INCOME FUNDS NOVEMBER 30, 2003 GEORGIA TAX-EXEMPT BOND FUND--CONCLUDED - -------------------------------------------------------------------------------- SHARES/FACE AMOUNT (000) VALUE (000) - -------------------------------------------------------------------------------- South Fulton, Municipal Regional Water & Sewer, RB, MBIA Callable 01/01/13 @ 100 5.250%, 01/01/21 $1,600 $ 1,715 Valdosta & Lowndes County, Hospital Authority, South Georgia Medical Center Project, RB, AMBAC Callable 10/01/12 @ 101 5.500%, 10/01/14 940 1,055 5.500%, 10/01/15 965 1,083 Vidalia, Water & Sewer, RB, ETM, Callable 07/01/04 @ 101 6.000%, 07/01/07 605 690 Walker County, Sales Tax, GO 3.125%, 01/01/06 890 919 Walker, Dade & Catoosa Counties, Hutcheson Medical Project, Ser A, RB, FSA Callable 10/01/07 @ 102 5.500%, 10/01/08 1,370 1,540 -------- 115,777 -------- PUERTO RICO (4.7%) Puerto Rico Commonwealth, Electric Power Authority, Ser II, RB, MBIA Callable 07/01/12 @ 101 5.375%, 07/01/16 2,000 2,252 Puerto Rico Commonwealth, Highway & Transportation Authority, Ser AA, RB, FGIC 5.500%, 07/01/16 1,000 1,161 Puerto Rico Commonwealth, Refunding & Public Improvement Project, Ser C, GO Mandatory Put 07/01/08 @ 100 5.500%, 07/01/18 2,000 2,254 -------- 5,667 -------- Total Municipal Bonds (Cost $115,454) 121,444 -------- CASH EQUIVALENTS (1.8%) Federated Tax Free Reserve Fund 847,869 848 SEI Tax Exempt Trust, Institutional Tax Free Fund 1,382,909 1,383 -------- Total Cash Equivalents (Cost $2,231) 2,231 -------- Total Investments (101.7%) (Cost $117,685) 123,675 -------- - -------------------------------------------------------------------------------- VALUE (000) - -------------------------------------------------------------------------------- OTHER ASSETS AND LIABILITIES (-1.7%) Investment Advisory Fees Payable $ (60) Distribution Fees Payable (8) Administration Fees Payable (7) Custody Fees Payable (1) Other Assets and Liabilities, Net (2,005) -------- Total Other Assets and Liabilities (2,081) -------- NET ASSETS: Paid in Capital -- T Shares (unlimited authorization -- no par value) based on 9,595,810 outstanding shares of beneficial interest 95,696 Paid in Capital -- A Shares (unlimited authorization -- no par value) based on 259,573 outstanding shares of beneficial interest 2,541 Paid in Capital -- L Shares (unlimited authorization -- no par value) based on 1,577,715 outstanding shares of beneficial interest 16,149 Undistributed net investment income 1 Accumulated net realized gain on investments 1,217 Net unrealized appreciation on investments 5,990 -------- Total Net Assets (100.0%) $121,594 ======== Net Asset Value, Offering and Redemption Price Per Share -- T Shares ($102,038,845 / 9,595,810 shares) $10.63 ======== Net Asset Value and Redemption Price Per Share -- A Shares ($2,763,823 / 259,573 shares) $10.65 ======== Maximum Offering Price Per Share -- A Shares ($0.65 / 96.25%) $11.06 ======== Net Asset Value and Offering Price Per Share -- L Shares (1) ($16,791,291 / 1,577,715 shares) $10.64 ======== THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS. FOR DESCRIPTIONS OF ABBREVIATIONS AND FOOTNOTES, PLEASE SEE PAGE 48. 8 - -------------------------------------------------------------------------------- (UNAUDITED) HIGH INCOME FUND - -------------------------------------------------------------------------------- FACE AMOUNT (000) VALUE (000) - -------------------------------------------------------------------------------- CORPORATE OBLIGATIONS (95.4%) AEROSPACE & DEFENSE (1.8%) K & F Industries, Ser B Callable 12/15/06 @ 104.813 9.625%, 12/15/10 $ 500 $ 555 L-3 Communications Callable 07/15/08 @ 103.063 6.125%, 07/15/13 1,000 993 Sequa 9.000%, 08/01/09 1,500 1,635 -------- 3,183 -------- AUTOPARTS (4.4%) Cummins (B) 9.500%, 12/01/10 500 574 Dana 6.500%, 03/15/08 1,000 1,000 Dana Credit (B) 8.375%, 08/15/07 500 525 HLI Operating (B) Callable 06/15/07 @ 105.25 10.500%, 06/15/10 250 284 Metaldyne Callable 06/15/07 @ 105.5 11.000%, 06/15/12 2,000 1,700 Metaldyne (B) Callable 11/01/10 @ 100 10.000%, 11/01/13 250 240 RJ Tower (B) 12.000%, 06/01/13 1,000 942 Tenneco Automotive, Ser B Callable 07/15/08 @ 105.125 10.250%, 07/15/13 250 284 TRW Automotive (B) 9.375%, 02/15/13 500 565 TRW Automotive (B) Callable 02/15/08 @ 105.5 11.000%, 02/15/13 1,500 1,759 -------- 7,873 -------- BROADCASTING (2.4%) Albritton Communications Callable 12/15/07 @ 103.88 7.750%, 12/15/12 1,000 1,017 Corus Entertainment Callable 03/01/07 @ 104.375 8.750%, 03/01/12 900 985 Paxson Communications Callable 07/15/05 @ 105.375 10.750%, 07/15/08 500 540 Paxson Communications (A) (K) Callable 01/15/06 @ 106.12 7.513%, 01/15/09 1,500 1,283 - -------------------------------------------------------------------------------- FACE AMOUNT (000) VALUE (000) - -------------------------------------------------------------------------------- Spanish Broadcasting Callable 11/01/04 @ 104.813 9.625%, 11/01/09 $ 500 $ 528 -------- 4,353 -------- BUILDING & CONSTRUCTION (5.0%) Jacuzzi Brands (B) Callable 07/01/07 @ 104.81 9.625%, 07/01/10 250 273 K. Hovnanian Enterprises (K) 6.500%, 01/15/14 1,000 998 K. Hovnanian Enterprises (K) Callable 04/01/07 @ 104.438 8.875%, 04/01/12 1,000 1,094 K. Hovnanian Enterprises Callable 05/15/08 @ 103.875 7.750%, 05/15/13 250 263 KB Home Callable 02/01/07 @ 103.875 7.750%, 02/01/10 750 799 Koppers Industries (B) Callable 10/15/08 @ 104.94 9.875%, 10/15/13 250 271 Nortek Holdings (A) (B) Callable 11/15/07 @ 105 10.000%, 05/15/11 750 525 Standard Pacific 9.250%, 04/15/12 1,500 1,665 WCI Communities Callable 02/15/06 @ 105.313 10.625%, 02/15/11 1,000 1,120 WCI Communities (K) Callable 05/01/07 @ 104.56 9.125%, 05/01/12 750 821 William Lyon Homes 10.750%, 04/01/13 1,000 1,121 -------- 8,950 -------- CABLE (5.6%) Adelphia Communications (J) 10.875%, 10/01/10 250 207 Adelphia Communications, Ser B (J) 10.500%, 07/15/04 500 422 Charter Communications Holdings 10.750%, 10/01/09 1,500 1,283 Comcast 10.625%, 07/15/12 340 431 DirecTV Holdings Callable 03/15/08 @ 104.188 8.375%, 03/15/13 500 566 Echostar DBS (B) 6.375%, 10/01/11 500 502 9 STATEMENT OF NET ASSETS - -------------------------------------------------------------------------------- STI CLASSIC FIXED INCOME FUNDS NOVEMBER 30, 2003 HIGH INCOME FUND - -------------------------------------------------------------------------------- FACE AMOUNT (000) VALUE (000) - -------------------------------------------------------------------------------- Echostar DBS Callable 01/15/06 @ 104.563 9.125%, 01/15/09 $ 325 $ 362 Echostar DBS Callable 02/01/04 @ 104.69 9.375%, 02/01/09 525 554 Echostar DBS Callable 10/01/04 @ 105.188 10.375%, 10/01/07 1,000 1,095 Insight Midwest LP (K) Callable 10/01/04 @ 104.875 9.750%, 10/01/09 2,000 2,110 Mediacom LLC (K) Callable 01/15/06 @ 104.75 9.500%, 01/15/13 2,250 2,233 Mediacom LLC, Ser B (K) Callable 04/15/04 @ 102.833 8.500%, 04/15/08 400 394 -------- 10,159 -------- CHEMICALS (5.5%) Acetex (B) Callable 08/01/05 @ 105.44 10.875%, 08/01/09 500 555 Compass Minerals Group Callable 08/15/06 @ 105 10.000%, 08/15/11 750 834 Equistar Chemical (B) Callable 05/01/07 @ 105.313 10.625%, 05/01/11 2,500 2,650 Equistar Chemical (B) Callable 05/01/09 @ 100 10.625%, 05/01/11 500 530 HMP Equity Holdings (B) (D) 14.050%, 05/15/08 2,250 1,192 Huntsman (B) Callable 10/15/07 @ 105.81 11.625%, 10/15/10 1,000 980 IMC Global (B) Callable 08/01/08 @ 105.44 10.875%, 08/01/13 500 528 IMC Global, Ser B Callable 06/01/06 @ 105.62 11.250%, 06/01/11 500 530 IMC Global, Ser B (K) Callable 06/01/06 @ 105.63 11.250%, 06/01/11 750 795 Millennium America (B) 9.250%, 06/15/08 250 268 OM Group Callable 12/15/06 @ 104.625 9.250%, 12/15/11 500 506 - -------------------------------------------------------------------------------- FACE AMOUNT (000) VALUE (000) - -------------------------------------------------------------------------------- Westlake Chemical (B) Callable 07/15/07 @ 104.38 8.750%, 07/15/11 $ 500 $ 538 -------- 9,906 -------- CONSUMER PRODUCTS (2.1%) American Achievement, Ser B Callable 01/01/05 @ 105.813 11.625%, 01/01/07 750 827 Chattem, Ser B Callable 04/01/04 @ 102.958 8.875%, 04/01/08 1,000 1,030 Hasbro 6.600%, 07/15/28 1,500 1,425 Jostens Holding (A) (B) (H) 10.250%, 12/01/13 400 253 Phillips Van Heusen (B) Callable 05/01/08 @104.063 8.125%, 05/01/13 250 263 -------- 3,798 -------- ENERGY (4.7%) Compton Petroleum Callable 05/15/06 @ 104.95 9.900%, 05/15/09 500 544 Denbury Resources Callable 04/01/08 @ 103.75 7.500%, 04/01/13 500 519 Paramount Resources Callable 11/01/07 @ 103.94 7.875%, 11/01/10 1,000 990 Peabody Energy, Ser B (K) Callable 03/15/08 @ 103.44 6.875%, 03/15/13 750 789 Petrobras International Finance 9.125%, 07/02/13 2,000 2,150 Premcor Refining Group (B) Callable 02/01/07 @ 104.625 9.250%, 02/01/10 1,000 1,115 Swift Energy (K) Callable 05/01/07 @ 104.688 9.375%, 05/01/12 750 823 Westport Resources 8.250%, 11/01/11 500 545 Williams Callable 06/01/07 @ 104.31 8.625%, 06/01/10 500 552 XTO Energy 6.250%, 04/15/13 500 528 -------- 8,555 -------- 10 - -------------------------------------------------------------------------------- (UNAUDITED) - -------------------------------------------------------------------------------- FACE AMOUNT (000) VALUE (000) - -------------------------------------------------------------------------------- ENTERTAINMENT (7.0%) Argosy Gaming Callable 06/01/04 @ 105.38 10.750%, 06/01/09 $ 500 $ 542 Bally Total Fitness Holding (B) Callable 07/15/07 @ 105.25 10.500%, 07/15/11 500 499 Boyd Gaming (B) (K) Callable 12/15/07 @ 103.875 7.750%, 12/15/12 500 526 Cinemark USA Callable 02/01/11 @ 100 9.000%, 02/01/13 250 277 Gaylord Entertainment (B) Callable 11/15/11 @ 100 8.000%, 11/15/13 250 260 Imax (B) (H) 9.625%, 12/01/10 500 517 Intrawest (B) Callable 10/15/08 @ 103.75 7.500%, 10/15/13 250 252 Kerzner International Callable 08/15/06 @ 104.438 8.875%, 08/15/11 2,000 2,175 MGM Mirage 9.750%, 06/01/07 500 568 6.000%, 10/01/09 (K) 1,000 1,014 Mohegan Tribal Gaming Authority 6.375%, 07/15/09 250 256 Muzak Callable 02/15/06 @ 105 10.000%, 02/15/09 500 524 Poster Financial Group (B) (H) Callable 12/01/11 @ 100 8.750%, 12/01/11 100 102 Resort International Hotel & Casino Callable 03/15/07 @ 106 11.500%, 03/15/09 500 531 Royal Caribbean Cruises (K) 8.750%, 02/02/11 500 560 Six Flags (K) Callable 02/01/06 @ 104.44 8.875%, 02/01/10 1,000 978 Six Flags Callable 04/15/08 @ 104.875 9.750%, 04/15/13 1,000 1,014 Venetian Casino Callable 06/15/06 @ 105.5 11.000%, 06/15/10 1,500 1,736 - -------------------------------------------------------------------------------- FACE AMOUNT (000) VALUE (000) - -------------------------------------------------------------------------------- Vivendi Universal (B) Callable 04/15/07 @ 104.625 9.250%, 04/15/10 $ 250 $ 293 -------- 12,624 -------- FINANCIAL SERVICES (1.4%) Banco Bradesco (B) 8.750%, 10/24/13 2,000 2,080 Dollar Financial Group (B) Callable 11/15/07 @ 104.875 9.750%, 11/15/11 515 531 -------- 2,611 -------- FOOD, BEVERAGE & TOBACCO (3.5%) Burns Philp Capital Property (B) Callable 07/15/07 @ 104.875 9.750%, 07/15/12 2,000 2,075 Del Monte, Ser B Callable 05/15/06 @ 104.63 9.250%, 05/15/11 500 545 Land O Lakes, Ser B (K) Callable 11/15/06 @ 104.38 8.750%, 11/15/11 2,000 1,840 Merisant (B) Callable 07/15/08 @ 104.75 9.500%, 07/15/13 250 256 RJ Reynolds Tobacco Holdings, Ser B 7.750%, 05/15/06 1,000 1,048 Swift Callable 10/01/06 @ 105.063 10.125%, 10/01/09 500 561 -------- 6,325 -------- HOTELS & LODGING (0.9%) Host Marriott, Ser B (K) Callable 08/01/04 @ 102.657 7.875%, 08/01/08 1,000 1,032 John Q Hammons Hotels, Ser B (K) Callable 05/15/07 @ 104.438 8.875%, 05/15/12 500 544 -------- 1,576 -------- INDUSTRIAL (6.6%) AMI Semiconductor Callable 02/01/08 @ 105.375 10.750%, 02/01/13 650 773 Berry Plastics (B) 10.750%, 07/15/12 250 285 Berry Plastics Callable 07/15/07 @ 105.375 10.750%, 07/15/12 250 285 11 STATEMENT OF NET ASSETS - -------------------------------------------------------------------------------- STI CLASSIC FIXED INCOME FUNDS NOVEMBER 30, 2003 HIGH INCOME FUND--CONTINUED - -------------------------------------------------------------------------------- FACE AMOUNT (000) VALUE (000) - -------------------------------------------------------------------------------- Case 7.250%, 08/01/05 $1,000 $ 1,035 Case New Holland (B) Callable 08/01/07 @ 104.62 9.250%, 08/01/11 500 560 Constar (K) Callable 12/01/07 @ 105.5 11.000%, 12/01/12 500 402 Federal-Mogul (J) 7.375%, 01/15/06 175 34 Foamex LP Callable 04/01/06 @ 105.375 10.750%, 04/01/09 500 449 Gerdau Ameristeel (B) Callable 07/15/07 @ 105.375 10.375%, 07/15/11 1,000 1,060 NMGH Holding Callable 05/15/06 @ 105 10.000%, 05/15/09 1,500 1,652 Owens Brockway Callable 05/15/08 @ 104.125 8.250%, 05/15/13 250 262 Pliant Callable 06/01/07 @ 105.563 11.125%, 09/01/09 500 520 Polaroid (J) 11.500%, 02/15/06 100 21 Polaroid, Ser A, MTN (I) 6.750%, 01/15/02 100 -- Shaw Group (B) Callable 03/15/07 @ 105.375 10.750%, 03/15/10 1,000 1,052 Stratus Technologies (B) Callable 12/18/06 @ 105.188 10.375%, 12/01/08 100 103 Trimas Callable 06/15/07 @ 104.938 9.875%, 06/15/12 1,500 1,545 UCAR Finance Callable 02/15/07 @ 105.125 10.250%, 02/15/12 250 276 United States Steel Callable 5/15/07 @ 104.88 9.750%, 05/15/10 1,000 1,073 Xerox 7.125%, 06/15/10 500 514 -------- 11,901 -------- - -------------------------------------------------------------------------------- FACE AMOUNT (000) VALUE (000) - -------------------------------------------------------------------------------- MEDICAL & MEDICAL PRODUCTS (6.7%) Ameripath Callable 04/01/08 @ 105.25 10.500%, 04/01/13 $2,000 $ 2,110 Fisher Scientific International Callable 05/01/07 @ 104.06 8.125%, 05/01/12 434 465 Genesis Healthcare (B) Callable 10/15/11 @ 100 8.000%, 10/15/13 250 254 Healthsouth (J) 8.375%, 10/01/11 1,500 1,388 Medex (B) Callable 05/15/08 @ 104.438 8.875%, 05/15/13 400 429 Pacificare Health Systems Callable 06/01/06 @ 105.375 10.750%, 06/01/09 1,500 1,721 PerkinElmer (B) (K) Callable 01/15/08 @ 104.438 8.875%, 01/15/13 500 564 Psychiatric Solutions (B) Callable 06/15/08 @ 105.313 10.625%, 06/15/13 500 559 Rotech Healthcare 9.500%, 04/01/12 2,000 2,080 US Oncology Callable 02/01/07 @ 104.813 9.625%, 02/01/12 500 545 United Surgical Partners (K) Callable 12/15/06 @ 105 10.000%, 12/15/11 1,710 1,932 -------- 12,047 -------- PRINTING & PUBLISHING (3.5%) Dex Media (A) Callable 11/15/08 @ 104.5 8.587%, 11/15/13 750 502 Dex Media East LLC Callable 11/15/06 @ 104.94 9.875%, 11/15/09 250 284 Dex Media East LLC Callable 11/15/07 @ 106.063 12.125%, 11/15/12 250 301 Dex Media West LLC (B) Callable 08/15/08 @ 104.94 9.875%, 08/15/13 500 567 Dex Media West LLC (B) Callable 08/15/07 @ 104.25 8.500%, 08/15/10 500 546 12 - -------------------------------------------------------------------------------- (UNAUDITED) - -------------------------------------------------------------------------------- FACE AMOUNT (000) VALUE (000) - -------------------------------------------------------------------------------- Houghton Mifflin (K) 9.875%, 02/01/13 $ 250 $ 268 Houghton Mifflin Callable 02/01/08 @ 102.063 8.250%, 02/01/11 250 264 Primedia 7.625%, 04/01/08 500 498 Primedia (B) Callable 05/15/08 @ 104 8.000%, 05/15/13 1,000 1,008 RH Donnelley (B) Callable 12/15/06 @ 104.438 8.875%, 12/15/10 250 281 RH Donnelley (B) Callable 12/15/07 @ 105.438 10.875%, 12/15/12 250 295 Von Hoffman 10.250%, 03/15/09 990 1,042 Von Hoffman (B) Callable 03/15/05 @ 107.69 10.250%, 03/15/09 500 526 -------- 6,382 -------- REAL ESTATE INVESTMENT TRUSTS (2.8%) Crescent Real Estate Callable 04/15/06 @ 104.625 9.250%, 04/15/09 1,000 1,091 La Quinta Properties (B) Callable 03/15/07 @ 104.438 8.875%, 03/15/11 1,000 1,102 MeriStar Hospitality Operating Partnership LP (K) Callable 12/15/05 @ 105.25 10.500%, 06/15/09 1,000 1,073 Meristar Hospitality 9.000%, 01/15/08 500 519 Senior Housing Properties Trust Callable 04/15/08 @ 103.938 7.875%, 04/15/15 500 525 Thornburg Mortgage (B) Callable 05/15/08 @ 104 8.000%, 05/15/13 500 528 Ventas Realty LP 9.000%, 05/01/12 250 280 -------- 5,118 -------- - -------------------------------------------------------------------------------- FACE AMOUNT (000) VALUE (000) - -------------------------------------------------------------------------------- RETAIL (6.6%) AmeriGas Partners LP, Ser B Callable 05/20/06 @ 104.438 8.875%, 05/20/11 $ 500 $ 542 Asbury Automotive Group Callable 06/15/07 @ 104.5 9.000%, 06/15/12 1,000 1,052 Broder Brothers (B) Callable 10/15/07 @ 105.62 11.250%, 10/15/10 1,000 1,002 Great Atlantic & Pacific Tea Callable 12/15/06 @ 104.563 9.125%, 12/15/11 1,750 1,527 Hines Nurseries (B) Callable 10/01/08 @ 105.12 10.250%, 10/01/11 250 271 Hollywood Entertainment Callable 03/15/07 @ 104.813 9.625%, 03/15/11 1,000 1,072 Ingles Markets Callable 12/01/06 @ 104.438 8.875%, 12/01/11 1,000 968 Jafra Cosmetics International Callable 05/15/07 @ 105.38 10.750%, 05/15/11 500 535 Office Depot 10.000%, 07/15/08 500 598 Rite Aid Callable 05/01/07 @ 104.063 8.125%, 05/01/10 500 538 Roundy's, Ser B (B) Callable 06/15/07 @ 104.438 8.875%, 06/15/12 1,500 1,586 Star Gas Partner Callable 02/15/08 @ 105.125 10.250%, 02/15/13 2,000 2,170 -------- 11,861 -------- SERVICES (4.9%) Allied Waste (B) (K) Callable 4/15/08 @ 103.94 7.875%, 04/15/13 500 535 Allied Waste, Ser B 9.250%, 09/01/12 500 557 Avnet (K) 9.750%, 02/15/08 1,000 1,142 CBRE Escrow (B) Callable 05/15/07 @ 104.88 9.750%, 05/15/10 250 278 13 STATEMENT OF NET ASSETS - -------------------------------------------------------------------------------- STI CLASSIC FIXED INCOME FUNDS NOVEMBER 30, 2003 HIGH INCOME FUND--CONTINUED - -------------------------------------------------------------------------------- FACE AMOUNT (000) VALUE (000) - -------------------------------------------------------------------------------- Coinmach Callable 02/01/06 @ 104.5 9.000%, 02/01/10 $ 500 $ 542 Cooperative Computing (B) Callable 06/15/07 @ 105.25 10.500%, 06/15/11 500 542 IESI Callable 06/15/07 @ 105.125 10.250%, 06/15/12 500 543 Interline Brands (B) Callable 05/15/07 @ 105.75 11.500%, 05/15/11 1,000 1,088 IPC Acquisition Callable 12/15/05 @ 105.75 11.500%, 12/15/09 400 436 Iron Mountain Callable 07/01/08 @ 103.31 6.625%, 01/01/16 500 488 National Waterworks, Ser B Callable 12/01/07 @ 105.25 10.500%, 12/01/12 250 279 Sanmina-SCI Callable 01/15/07 @ 105.188 10.375%, 01/15/10 500 583 Service International 7.700%, 04/15/09 500 524 Thomas & Betts Callable 6/1/08 @ 103.62 7.250%, 06/01/13 250 259 United Rentals (B) Callable 11/15/11 @ 100 7.750%, 11/15/13 1,000 998 -------- 8,794 -------- TELEPHONES & TELECOMMUNICATIONS (10.9%) Alaska Communications Systems Holdings (B) Callable 08/15/07 @ 104.938 9.875%, 08/15/11 1,000 1,050 Centennial Cellular Operating Callable 06/15/08 @ 105.06 10.125%, 06/15/13 500 528 Cincinnati Bell (B) Callable 01/15/12 @ 100 8.375%, 01/15/14 250 262 Crown Castle International Callable 08/01/05 @ 105.375 10.750%, 08/01/11 2,000 2,240 - -------------------------------------------------------------------------------- FACE AMOUNT (000) VALUE (000) - -------------------------------------------------------------------------------- Crown Castle International (B) (H) Callable 12/01/13 @ 100 7.500%, 12/01/13 $1,000 $ 990 Eircom Funding (B) Callable 08/15/08 @ 104.12 8.250%, 08/15/13 250 271 Embratel (B) (H) 11.000%, 12/15/08 1,000 990 Fairpoint Communications Callable 03/01/07 @ 105.94 11.875%, 03/01/10 250 291 Horizon PCS (J) Callable 12/15/06 @ 106.87 13.750%, 06/15/11 400 88 Intermedia Communications, Ser B (A) (J) 11.250%, 07/15/07 1,500 1,305 Nextel Communications Callable 10/31/11 @ 100 6.875%, 10/31/13 500 512 Nextel Communications (K) Callable 08/01/08 @ 103.688 7.375%, 08/01/15 2,000 2,105 Nextel Partners (B) Callable 07/01/07 @ 104.06 8.125%, 07/01/11 500 520 PanAmSat (K) Callable 02/01/07 @ 104.25 8.500%, 02/01/12 2,500 2,719 Qwest Services (B) Callable 12/15/05 @ 106.5 13.000%, 12/15/07 2,000 2,320 Rogers Cantel 8.300%, 10/01/07 750 773 Rogers Cantel Callable 06/01/04 @ 103.125 9.375%, 06/01/08 1,000 1,045 Rural Cellular, Ser B Callable 05/15/04 @ 103.208 9.625%, 05/15/08 631 587 TSI Telecommunications Services, Ser B Callable 02/01/06 @ 106.375 12.750%, 02/01/09 1,000 1,094 -------- 19,690 -------- 14 - -------------------------------------------------------------------------------- (UNAUDITED) - -------------------------------------------------------------------------------- FACE AMOUNT (000) VALUE (000) - -------------------------------------------------------------------------------- TRANSPORTATION (5.4%) Continental Airlines (K) 8.000%, 12/15/05 $ 150 $ 145 Delta Air Lines (B) Callable 08/15/08 @ 100 10.000%, 08/15/08 2,000 1,665 El Paso Energy Partners, Ser B Callable 12/01/06 @ 104.25 8.500%, 06/01/11 1,000 1,090 General Maritime Callable 03/15/08 @ 105 10.000%, 03/15/13 1,000 1,122 GulfTerra Energy Partners, Callable 12/01/07 @ 105.313 10.625%, 12/01/12 500 588 Laidlaw International (B) 10.750%, 06/15/11 500 550 Laidlaw, Ser B 11.500%, 04/15/07 3,000 2,648 Overseas Shipholding Group (K) Callable 03/15/08 @ 104.12 8.250%, 03/15/13 500 533 Quality Distribution (B) Callable 11/15/09 @ 100 9.000%, 11/15/10 500 515 Stena (B) (H) Callable 11/01/08 @ 103.75 7.500%, 11/01/13 250 253 Transmontaigne (B) Callable 06/01/07 @ 104.563 9.125%, 06/01/10 500 536 -------- 9,645 -------- UTILITIES (3.7%) AES (B) Callable 05/15/08 @ 104.375 8.750%, 05/15/13 250 271 Calpine 7.875%, 04/01/08 75 55 7.625%, 04/15/06 435 370 Calpine (K) 8.500%, 02/15/11 300 218 Dynegy Holdings (B) Callable 07/15/07 @ 104.938 9.875%, 07/15/10 250 274 Kansas Gas & Electric 6.500%, 08/01/05 250 265 MSW Energy Holdings (B) Callable 09/01/07 @ 104.25 8.500%, 09/01/10 250 269 - -------------------------------------------------------------------------------- SHARES/FACE AMOUNT (000) VALUE (000) - -------------------------------------------------------------------------------- MSW Energy Holdings (B) Callable 09/01/10 @ 100 7.375%, 09/01/10 $ 500 $ 515 Mission Energy Holdings 13.500%, 07/15/08 1,950 1,784 PG&E (B) 6.875%, 07/15/08 500 532 PSEG Energy Holdings 7.750%, 04/16/07 500 516 Reliant Resources (B) Callable 07/15/07 @ 104.625 9.250%, 07/15/10 500 505 Semco Energy (B) 7.125%, 05/15/08 250 256 Westar Energy (K) 9.750%, 05/01/07 750 860 -------- 6,690 -------- Total Corporate Obligations (Cost $164,036) 172,041 -------- FOREIGN GOVERNMENT DEBT SECURITY (1.8%) BRAZIL Federal Republic of Brazil 10.250%, 06/17/13 3,000 3,229 -------- Total Foreign Government Debt Security (Cost $2,941) 3,229 -------- COMMON STOCK (0.2%) TELEPHONES & TELECOMMUNICATIONS (0.2%) Allstream, Cl A (M) 96 5 Allstream, Cl B (M) 5,159 272 -------- 277 -------- Total Common Stock (Cost $688) 277 -------- SHORT-TERM INVESTMENT (15.7%) Boston Global Investment Trust -- Enhanced Portfolio (L) 28,242,237 28,242 -------- Total Short-Term Investment (Cost $28,242) 28,242 -------- CASH EQUIVALENT (1.8%) Federated Prime Value Money Market Fund 3,244,897 3,245 -------- Total Cash Equivalent (Cost $3,245) 3,245 -------- Total Investments (114.9%) (Cost $199,152) 207,034 -------- 15 STATEMENT OF NET ASSETS - -------------------------------------------------------------------------------- STI CLASSIC FIXED INCOME FUNDS NOVEMBER 30, 2003 HIGH INCOME FUND--CONCLUDED - -------------------------------------------------------------------------------- VALUE (000) - -------------------------------------------------------------------------------- OTHER ASSETS AND LIABILITIES (-14.9%) Payable Upon Return of Securities Loaned $ (28,242) Investment Advisory Fees Payable (94) Distribution Fees Payable (40) Administration Fees Payable (10) Custody Fees Payable (3) Other Assets and Liabilities, Net 1,594 -------- Total Other Assets and Liabilities (26,795) -------- NET ASSETS: Paid in Capital -- T Shares (unlimited authorization -- no par value) based on 12,209,579 outstanding shares of beneficial interest 85,552 Paid in Capital -- A Shares (unlimitedauthorization -- no par value) based on 136,840 outstanding shares of beneficial interest 1,025 Paid in Capital -- L Shares (unlimited authorization -- no par value) based on 11,635,192 outstanding shares of beneficial interest 86,820 Undistributed net investment income 2 Accumulated net realized loss on investments (1,042) Net unrealized appreciation on investments 7,882 -------- Total Net Assets (100.0%) $180,239 ======== Net Asset Value, Offering and Redemption Price Per Share -- T Shares ($91,748,905 / 12,209,579 shares) $7.51 ======== Net Asset Value and Redemption Price Per Share -- A Shares ($1,029,038 / 136,840 shares) $7.52 ======== Maximum Offering Price Per Share -- A Shares ($7.52 / 96.25%) $7.81 ======== Net Asset Value and Offering Price Per Share -- L Shares (1) ($87,460,663 / 11,635,192 shares) $7.52 ======== THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS. FOR DESCRIPTIONS OF ABBREVIATIONS AND FOOTNOTES, PLEASE SEE PAGE 48. 16 - -------------------------------------------------------------------------------- (UNAUDITED) INVESTMENT GRADE BONDFUND - -------------------------------------------------------------------------------- FACE AMOUNT (000) VALUE (000) - -------------------------------------------------------------------------------- CORPORATE OBLIGATIONS (51.7%) AEROSPACE & DEFENSE (1.0%) General Dynamics (K) 4.250%, 05/15/13 $ 3,930 $ 3,742 Northrop Grumman 7.000%, 03/01/06 3,440 3,766 -------- 7,508 -------- AUTOMOTIVE (1.6%) DaimlerChrysler (K) 6.400%, 05/15/06 3,660 3,898 Ford Motor 7.450%, 07/16/31 4,285 4,065 General Motors 8.375%, 07/15/33 3,500 3,813 -------- 11,776 -------- BANKS (7.0%) Bank One (K) 5.500%, 03/26/07 3,440 3,699 Bank of America 6.500%, 03/15/06 10,435 11,322 KFW International Finance, Ser DTC 2.500%, 10/17/05 8,000 8,064 NB Capital Trust 8.250%, 04/15/27 7,600 8,755 Wachovia 6.800%, 06/01/05 8,000 8,550 Wells Fargo (K) 3.500%, 04/04/08 11,435 11,397 -------- 51,787 -------- BROADCASTING (2.0%) Comcast Cablevision (K) 8.375%, 05/01/07 3,155 3,628 Cox Communications 7.125%, 10/01/12 3,330 3,810 Liberty Media (K) 3.500%, 09/25/06 3,860 3,841 Univision Communications 3.500%, 10/15/07 3,825 3,807 -------- 15,086 -------- FINANCE (14.1%) Boeing Capital (K) 5.650%, 05/15/06 3,465 3,684 CIT Group 4.125%, 02/21/06 12,750 13,133 Freddie Mac 5.875%, 03/21/11 13,360 14,305 General Electric Capital (K) 3.500%, 05/01/08 15,175 15,097 - -------------------------------------------------------------------------------- FACE AMOUNT (000) VALUE (000) - -------------------------------------------------------------------------------- Golden West Financial 4.125%, 08/15/07 $ 5,000 $ 5,145 Household Finance (K) 5.750%, 01/30/07 7,045 7,568 International Lease Finance 3.750%, 08/01/07 11,195 11,316 MBNA America Bank (K) 5.375%, 01/15/08 3,055 3,237 National Rural Utilities 3.000%, 02/15/06 11,265 11,349 SLM, MTN 3.625%, 03/17/08 9,260 9,239 Textron Financial, Ser E, MTN 2.750%, 06/01/06 3,870 3,833 Washington Mutual Financial (K) 8.250%, 06/15/05 6,785 7,396 -------- 105,302 -------- FOOD, BEVERAGE & TOBACCO (2.0%) Albertson's 7.500%, 02/15/11 3,185 3,622 Kraft Foods 5.250%, 10/01/13 3,820 3,805 Kroger 7.800%, 08/15/07 3,530 4,000 Safeway 6.150%, 03/01/06 3,510 3,748 -------- 15,175 -------- INDUSTRIAL (7.7%) Amerada Hess 7.125%, 03/15/33 3,595 3,646 Anadarko Petroleum 3.250%, 05/01/08 3,885 3,793 CBS 7.875%, 09/01/23 3,180 3,729 Computer Sciences 7.500%, 08/08/05 6,815 7,401 Conoco 6.950%, 04/15/29 6,805 7,664 Devon Financing 6.875%, 09/30/11 3,405 3,836 First Data (K) 3.375%, 08/01/08 4,715 4,646 International Paper 6.750%, 09/01/11 3,585 3,982 Kerr-McGee 5.375%, 04/15/05 1,530 1,583 Masco (K) 5.875%, 07/15/12 3,585 3,816 Petroleos Mexicanos 9.250%, 03/30/18 4,300 4,956 17 STATEMENT OF NET ASSETS - -------------------------------------------------------------------------------- STI CLASSIC FIXED INCOME FUNDS NOVEMBER 30, 2003 INVESTMENT GRADE BONDFUND--CONCLUDED - -------------------------------------------------------------------------------- FACE AMOUNT (000) VALUE (000) - -------------------------------------------------------------------------------- Time Warner 6.125%, 04/15/06 $ 3,680 $ 3,929 Weyerhaeuser 7.950%, 03/15/25 3,850 4,282 -------- 57,263 -------- INSURANCE (1.0%) MetLife (K) 5.375%, 12/15/12 7,295 7,481 -------- INVESTMENT BANKERS/BROKER DEALERS (7.2%) Bear Stearns 5.700%, 01/15/07 10,365 11,162 Citigroup Global Markets Holdings 6.500%, 02/15/08 7,170 7,950 Goldman Sachs Group 4.750%, 07/15/13 7,885 7,615 JP Morgan Chase (K) 5.250%, 05/30/07 7,090 7,520 Lehman Brothers Holdings 4.000%, 01/22/08 7,480 7,562 Merrill Lynch, Ser B, MTN 3.375%, 09/14/07 11,385 11,423 -------- 53,232 -------- REAL ESTATE (1.0%) EOP Operating LP 8.375%, 03/15/06 3,375 3,768 Simon Property Group (K) 6.375%, 11/15/07 3,390 3,715 -------- 7,483 -------- RETAIL (1.1%) May Department Stores 7.450%, 09/15/11 3,470 4,021 Nordstrom 8.950%, 10/15/05 3,410 3,777 -------- 7,798 -------- TELEPHONES & TELECOMMUNICATIONS (3.1%) British Telecom PLC 7.875%, 12/15/05 1,700 1,872 Deutsche Telekom International Finance 8.250%, 06/15/05 4,020 4,367 Sprint Capital (K) 7.625%, 01/30/11 3,435 3,770 Verizon Global Funding 7.250%, 12/01/10 8,355 9,548 Verizon New York, Ser B 7.375%, 04/01/32 3,460 3,756 -------- 23,313 -------- - -------------------------------------------------------------------------------- FACE AMOUNT (000) VALUE (000) - -------------------------------------------------------------------------------- TRANSPORTATION (1.0%) Norfolk Southern (K) 7.800%, 05/15/27 $ 3,180 $ 3,796 Union Pacific 5.750%, 10/15/07 3,550 3,801 -------- 7,597 -------- UTILITIES (1.9%) Alabama Power, Ser X 3.125%, 05/01/08 3,195 3,128 Carolina Power & Light 6.500%, 07/15/12 3,385 3,719 Dominion Resources, Ser B 7.625%, 07/15/05 3,445 3,729 Pacificorp 6.900%, 11/15/11 3,000 3,425 -------- 14,001 -------- Total Corporate Obligations (Cost $380,646) 384,802 -------- U.S. TREASURY OBLIGATIONS (23.8%) U.S. Treasury Bonds 7.500%, 11/15/16 (K) 39,000 49,331 6.250%, 08/15/23 38,805 43,842 5.375%, 02/15/31 (K) 42,050 43,568 U.S. Treasury Notes 4.375%, 08/15/12 12,355 12,528 3.250%, 08/15/07 (K) 27,475 27,829 -------- Total U.S. Treasury Obligations (Cost $173,624) 177,098 -------- U.S. GOVERNMENT MORTGAGE-BACKED OBLIGATIONS (12.7%) FNMA 6.500%, 07/01/32 to 12/01/32 13,926 14,522 6.000%, 09/01/17 9,393 9,813 5.000%, 06/01/33 22,856 22,448 4.500%, 06/01/18 15,226 15,132 GNMA 8.500%, 04/15/31 8,521 9,240 8.000%, 08/15/31 to 09/15/31 21,443 23,213 -------- Total U.S. Government Mortgage-Backed Obligations (Cost $93,693) 94,368 -------- U.S. GOVERNMENT AGENCY OBLIGATION (3.5%) FHLB 2.625%, 05/15/07 26,895 26,475 -------- Total U.S. Government Agency Obligation (Cost $26,416) 26,475 -------- 18 - -------------------------------------------------------------------------------- (UNAUDITED) - -------------------------------------------------------------------------------- SHARES/FACE AMOUNT (000) VALUE (000) - -------------------------------------------------------------------------------- ASSET-BACKED OBLIGATIONS (3.5%) Capital Auto Receivables Asset Trust, Ser 2002-4, Cl A4 2.640%, 03/17/08 $ 8,000 $ 8,025 GE Capital, Ser 2002-1A, Cl A3 6.269%, 12/10/35 8,790 9,670 Harley-Davidson Motorcycle Trust, Ser 2002-2, Cl A2 3.090%, 06/15/10 3,930 3,991 JP Morgan Chase Commercial Mortgage Securities, Ser 2002-C3, Cl A2 4.994%, 07/12/35 4,500 4,538 -------- Total Asset-Backed Obligations (Cost $25,277) 26,224 -------- FOREIGN GOVERNMENT DEBT SECURITIES (3.0%) CANADA (2.2%) Quebec Province, Ser NN 7.125%, 02/09/24 7,600 8,911 Province of Ontario 6.000%, 02/21/06 8,195 8,793 -------- 17,704 -------- MEXICO (0.8%) United Mexican States 4.625%, 10/08/08 4,725 4,732 -------- Total Foreign Government Debt Securities (Cost $22,481) 22,436 -------- MUNICIPAL BOND (0.5%) Illinois State, Taxable Pension, GO Callable 06/01/19 @ 100 4.950%, 06/01/23 4,100 3,767 -------- Total Municipal Bond (Cost $4,095) 3,767 -------- SHORT-TERM INVESTMENT (25.8%) Boston Global Investment Trust -- Enhanced Portfolio (L) 191,853,718 191,854 -------- Total Short-Term Investment (Cost $191,854) 191,854 -------- CASH EQUIVALENT (0.4%) Federated Prime Value Money Market Fund 2,910,301 2,910 -------- Total Cash Equivalent (Cost $2,910) 2,910 -------- Total Investments (124.9%) (Cost $920,996) 929,934 -------- - -------------------------------------------------------------------------------- VALUE (000) - -------------------------------------------------------------------------------- OTHER ASSETS AND LIABILITIES (-24.9%) Payable Upon Return of Securities Loaned $(191,854) Investment Advisory Fees Payable (445) Administration Fees Payable (44) Distribution Fees Payable (27) Custody Fees Payable (18) Other Assets and Liabilities, Net 7,288 -------- Total Other Assets and Liabilities (185,100) -------- NET ASSETS: Paid in Capital -- T Shares (unlimited authorization -- no par value) based on 64,700,134 outstanding shares of beneficial interest 691,672 Paid in Capital -- A Shares (unlimited authorization -- no par value) based on 3,208,032 outstanding shares of beneficial interest 34,567 Paid in Capital -- L Shares (unlimited authorization -- no par value) based on 2,980,187 outstanding shares of beneficial interest 31,777 Distributions in excess of net investment income (1,690) Accumulated net realized loss on investments (20,430) Net unrealized appreciation on investments 8,938 -------- Total Net Assets (100.0%) $744,834 ======== Net Asset Value, Offering and Redemption Price Per Share -- T Shares ($679,802,666 / 64,700,134 shares) $10.51 ======== Net Asset Value and Redemption Price Per Share -- A Shares ($33,703,454 / 3,208,032 shares) $10.51 ======== Maximum Offering Price Per Share -- A Shares ($10.51 / 96.25%) $10.92 ======== Net Asset Value and Offering Price Per Share -- L Shares (1) ($31,327,394 / 2,980,187 shares) $10.51 ======== THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS. FOR DESCRIPTIONS OF ABBREVIATIONS AND FOOTNOTES, PLEASE SEE PAGE 48. 19 STATEMENT OF NET ASSETS - -------------------------------------------------------------------------------- STI CLASSIC FIXED INCOME FUNDS NOVEMBER 30, 2003 INVESTMENT GRADE TAX-EXEMPT BOND FUND - -------------------------------------------------------------------------------- FACE AMOUNT (000) VALUE (000) - -------------------------------------------------------------------------------- MUNICIPAL BONDS (97.3%) ALABAMA (8.4%) Alabama State, Public School & College Authority, Capital Improvement Project, Ser C, RB Callable 07/01/09 @ 101.5 5.750%, 07/01/17 $ 3,950 $ 4,508 Alabama State, Water Pollution Control Authority, Revolving Fund Loan Project, RB, AMBAC Callable 08/15/09 @ 100 5.750%, 08/15/12 5,205 5,972 Auburn University, Ser A, RB, MBIA Callable 06/01/11 @ 100 6.000%, 06/01/16 4,060 4,722 Huntsville, Ser A, GO Callable 05/01/12 @ 102 5.750%, 05/01/19 2,800 3,181 5.625%, 05/01/16 2,375 2,707 -------- 21,090 -------- ARIZONA (3.1%) Arizona State, University & College Improvements Project, RB, FGIC Callable 07/01/12 @ 100 5.500%, 07/01/15 1,665 1,876 Arizona State, Water Infrastructure Finance Authority, Ser A, RB Callable 10/01/09 @ 101 5.625%, 10/01/12 3,280 3,742 Pima County, University School District, GO, FSA 5.000%, 07/01/11 2,000 2,240 -------- 7,858 -------- CALIFORNIA (5.3%) California State, Housing Finance Authority, Ser L (C) 1.036%, 08/01/15 5,000 5,000 Fresno, University School District, Ser A, GO, MBIA Callable 02/01/13 @ 103 6.550%, 08/01/20 1,950 2,375 Orange County, Loma Ridge/Data Center Project, COP, AMBAC Prerefunded @ 100 (F) 6.000%, 06/01/04 2,075 2,470 - -------------------------------------------------------------------------------- FACE AMOUNT (000) VALUE (000) - -------------------------------------------------------------------------------- San Bernardino County, Medical Center Financing Project, Ser A, COP, MBIA Prerefunded @ 102 (F) 6.500%, 08/01/05 $ 3,000 $ 3,317 -------- 13,162 -------- COLORADO (9.6%) Colorado State, Health Facilities Authority, North Colorado Medical Center Project, RB, MBIA (C) Callable 12/01/03 @ 100 1.030%, 05/15/20 2,700 2,700 Larimer County, School District No. R1, GO, FGIC Callable 12/15/10 @ 100 6.000%, 12/15/15 3,000 3,494 6.000%, 12/15/16 3,000 3,493 6.000%, 12/15/17 4,000 4,658 Regional Transition District, State Sales Tax, Ser B, RB, AMBAC Callable 11/01/12 @ 100 5.500%, 11/01/17 2,655 2,966 Westminster, Sales & Use Tax, Ser A, RB Callable 12/01/07 @ 102 5.600%, 12/01/16 5,940 6,704 -------- 24,015 -------- CONNECTICUT (4.4%) Connecticut State, Refunding Bonds, Ser G, GO, MBIA (H) 4.500%, 03/15/09 10,000 10,957 -------- FLORIDA (6.4%) Florida State, Board Capital Outlay, Public Education Project, Ser C, GO Callable 06/01/05 @ 101 5.300%, 06/01/09 7,395 7,883 Palm Beach County, State School Board, Ser C, COP, FSA Callable 08/01/12 @ 100 5.500%, 08/01/15 2,825 3,182 University of South Florida, COP (LOC: Wachovia, N.A.) (C) 1.060%, 01/01/29 5,010 5,010 -------- 16,075 -------- 20 - -------------------------------------------------------------------------------- (UNAUDITED) - -------------------------------------------------------------------------------- FACE AMOUNT (000) VALUE (000) - -------------------------------------------------------------------------------- GEORGIA (3.5%) Georgia State, University, College, Public, and Correctional Facility Improvements, Ser D, GO (H) 2.000%, 12/01/04 $ 8,740 $ 8,820 -------- ILLINOIS (2.5%) Chicago, School Finance Authority, Ser A, GO, FGIC Callable 12/29/03 @ 101.5 6.250%, 06/01/09 6,000 6,115 -------- IOWA (0.9%) Des Moines, Public Parking System, Ser A, RB, FGIC Callable 06/01/10 @ 100 6.375%, 06/01/18 2,005 2,356 -------- KANSAS (3.7%) Sedgwick County, Unified School District No. 259, GO, MBIA Callable 09/01/10 @ 100 5.500%, 09/01/12 6,150 6,945 Wyandotte County, School District No. 500, GO, FSA Callable 09/01/12 @ 100 5.500%, 09/01/17 2,000 2,312 -------- 9,257 -------- MARYLAND (0.9%) Howard County, Consolidated Public Improvements Project, Ser A, GO 5.000%, 08/15/10 2,000 2,259 -------- MASSACHUSETTS (4.0%) Massachusetts State, Water Pollution Abatement, Treatment Pool Project, Ser 6, RB Callable 08/01/10 @ 101 5.625%, 08/01/16 2,500 2,838 5.625%, 08/01/17 6,250 7,096 -------- 9,934 -------- MICHIGAN (5.4%) Michigan State, Municipal Authority, Clean Water State Revolving Fund, Water Utility Improvements, RB Callable 10/01/12 @ 100 5.375%, 10/01/17 3,300 3,666 - -------------------------------------------------------------------------------- FACE AMOUNT (000) VALUE (000) - -------------------------------------------------------------------------------- Michigan State, Municipal Authority, State Revolving Fund, RB Callable 10/01/07 @ 101 5.200%, 10/01/13 $ 2,000 $ 2,211 Michigan State, Ser D, RB, FSA (C) Callable 12/03/03 @ 100 1.120%, 09/15/09 7,500 7,500 -------- 13,377 -------- MISSISSIPPI (1.0%) Jackson, Public School District, Ser B, GO, AMBAC Callable 10/01/10 @ 100 5.750%, 10/01/15 2,275 2,587 -------- MISSOURI (4.0%) Missouri State, Highways & Transportation Commission, Ser A, RB Callable 02/01/11 @ 100 5.625%, 02/01/18 8,885 10,007 -------- NEW YORK (11.8%) Buffalo, School District, Ser D, GO, FGIC Callable 12/15/11 @ 100 5.500%, 12/15/14 1,075 1,212 New York State, Dormitory Authority, School Districts Financing Program, Ser B, RB Callable 10/01/12 @ 100 6.500%, 10/01/17 3,505 4,242 New York State, Tobacco Settlement Financing Corporation, Ser A, RB Callable 06/01/08 @ 100 5.250%, 06/01/13 10,000 10,562 New York State, Tobacco Settlement Financing Corporation, Ser C-1, RB (H) Callable 06/01/07 @ 100 5.250%, 06/01/12 6,720 7,073 New York State, Urban Development Authority, State Personal Income Tax Project, Ser B, RB, MBIA 5.000%, 03/15/12 5,705 6,336 -------- 29,425 -------- 21 STATEMENT OF NET ASSETS - -------------------------------------------------------------------------------- STI CLASSIC FIXED INCOME FUNDS NOVEMBER 30, 2003 INVESTMENT GRADE TAX-EXEMPT BOND FUND--CONCLUDED - -------------------------------------------------------------------------------- FACE AMOUNT (000) VALUE (000) - -------------------------------------------------------------------------------- OHIO (2.7%) Cleveland, Income Tax Revenue Authority, RB, AMBAC (C) Callable 06/02/04 @ 100 1.030%, 05/15/24 $ 2,900 $ 2,900 Ohio State, Water Development Authority, Fresh Water Improvements Project, RB Callable 06/01/12 @ 100 5.375%, 12/01/17 1,900 2,096 Ohio State, Water Development Authority, Fresh Water Project, RB, AMBAC, ETM Callable 06/01/05 @ 102 5.700%, 06/01/08 1,520 1,640 -------- 6,636 -------- OREGON (3.4%) Oregon State, Department of Transportation, Highway Usertax Authority, Ser A, RB Callable 11/15/12 @ 100 5.500%, 11/15/17 7,500 8,400 -------- SOUTH CAROLINA (1.3%) South Carolina State, Clemson University, RB, AMBAC, Callable 05/01/09 @ 101 6.250%, 05/01/15 2,725 3,179 -------- TEXAS (1.8%) Irving, Waterworks & Sewer Authority, RB Callable 06/15/09 @ 100.5 5.950%, 06/15/19 1,460 1,656 Texas State, Texas Tech University Improvements, 9th Ser, RB, AMBAC 4.000%, 02/15/10 2,700 2,858 -------- 4,514 -------- VIRGINIA (2.0%) Virginia State, Peninsula Port Authority, Dominion Term Project, Ser C, RB (LOC: Citibank N.A.) (C) 1.030%, 07/01/16 5,000 5,000 -------- - -------------------------------------------------------------------------------- SHARES/FACE AMOUNT (000) VALUE (000) - -------------------------------------------------------------------------------- WASHINGTON (1.9%) Washington State, Ser VR 96A, GO (C) Callable 12/03/03 @ 100 0.990%, 06/01/20 $ 4,800 $ 4,800 -------- PUERTO RICO (9.3%) Puerto Rico Commonwealth, Government Development Authority, RB, MBIA (C) Callable 12/01/03 @ 100 1.010%, 12/01/15 10,000 10,000 Puerto Rico Commonwealth, Municipal Finance Agency, Ser A, RB, FSA Callable 08/01/12 @ 100 5.250%, 08/01/14 4,000 4,472 Puerto Rico Commonwealth, Public Improvements Project, Ser B, GO, FGIC 5.500%, 07/01/12 7,500 8,683 -------- 23,155 -------- Total Municipal Bonds (Cost $236,765) 242,978 -------- CASH EQUIVALENTS (9.5%) Federated Tax Free Reserve Fund 11,711,466 11,711 SEI Tax Exempt Trust, Institutional Tax Free Fund 12,011,175 12,011 -------- Total Cash Equivalents (Cost $23,722) 23,722 -------- REPURCHASE AGREEMENT (3.0%) JP Morgan Chase, 0.995%, dated 11/28/03, to be repurchased on 12/01/03, repurchase price $7,464,866 (collateralized by U.S. Government Obligations; total market value $7,615,822) (G) $ 7,464 7,464 -------- Total Repurchase Agreement (Cost $7,464) 7,464 -------- Total Investments (109.8%) (Cost $267,951) 274,164 -------- 22 - -------------------------------------------------------------------------------- (UNAUDITED) - -------------------------------------------------------------------------------- VALUE (000) - -------------------------------------------------------------------------------- OTHER ASSETS AND LIABILITIES (-9.8%) Payable for Investment Securities Purchased $ (32,105) Investment Advisory Fees Payable (143) Distribution Fees Payable (24) Administration Fees Payable (14) Custody Fees Payable (3) Other Assets and Liabilities, Net 7,924 -------- Total Other Assets and Liabilities (24,365) -------- NET ASSETS: Paid in Capital -- T Shares (unlimited authorization -- no par value) based on 16,853,372 outstanding shares of beneficial interest 191,162 Paid in Capital -- A Shares (unlimited authorization -- no par value) based on 1,761,764 outstanding shares of beneficial interest 18,592 Paid in Capital -- L Shares (unlimited authorization -- no par value) based on 2,456,880 outstanding shares of beneficial interest 28,219 Undistributed net investment income 1 Accumulated net realized gain on investments 5,612 Net unrealized appreciation on investments 6,213 -------- Total Net Assets (100.0%) $249,799 ======== Net Asset Value, Offering and Redemption Price Per Share -- T Shares ($199,783,417 / 16,853,372 shares) $11.85 ======== Net Asset Value and Redemption Price Per Share -- A Shares ($20,905,070 / 1,761,764 shares) $11.87 ======== Maximum Offering Price Per Share -- A Shares ($11.87 / 96.25%) 12.33 ======== Net Asset Value and Offering Price Per Share -- L Shares (1) ($29,110,703 / 2,456,880 shares) $11.85 ======== THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS. FOR DESCRIPTIONS OF ABBREVIATIONS AND FOOTNOTES, PLEASE SEE PAGE 48. 23 STATEMENT OF NET ASSETS - -------------------------------------------------------------------------------- STI CLASSIC FIXED INCOME FUNDS NOVEMBER 30, 2003 LIMITED-TERM FEDERAL MORTGAGE SECURITIES FUND - -------------------------------------------------------------------------------- FACE AMOUNT (000) VALUE (000) - -------------------------------------------------------------------------------- U.S. GOVERNMENT MORTGAGE-BACKED OBLIGATIONS (50.3%) FHLMC 6.500%, 02/01/17 $ 5,378 $ 5,661 4.500%, 06/01/13 34,890 34,752 3.362%, 07/01/33 10,086 10,167 FNMA 8.500%, 04/01/17 96 105 7.000%, 11/01/16 to 05/01/32 21,425 22,623 6.500%, 06/01/13 to 12/01/32 16,558 17,311 6.000%, 09/01/13 to 11/01/33 56,094 58,274 4.254%, 08/01/33 25,974 26,311 4.133%, 05/01/33 13,511 13,631 4.089%, 06/01/33 23,620 23,721 4.000%, 11/01/13 14,881 14,864 3.202%, 05/01/33 13,552 13,535 GNMA 9.000%, 11/15/17 167 186 8.500%, 04/15/31 1,027 1,113 8.000%, 06/15/30 to 09/15/31 10,839 11,735 7.000%, 07/15/31 to 09/15/31 4,106 4,367 6.500%, 11/15/31 5,347 5,625 6.000%, 12/15/31 4,714 4,882 5.500%, 12/15/32 8,222 8,317 GNMA 3/1 Hybrid Arm 0.000%, 01/01/07 25,000 24,875 -------- Total U.S. Government Mortgage-Backed Obligations (Cost $299,955) 302,055 -------- U.S. GOVERNMENT AGENCY OBLIGATIONS (31.4%) FHLB 5.125%, 03/06/06 25,000 26,456 4.500%, 09/16/13 5,000 4,890 FHLMC 6.875%, 09/15/10 25,000 28,875 4.250%, 05/22/13 3,000 2,796 3.000%, 10/27/06 to 07/22/08 20,000 19,686 2.150%, 06/02/06 15,000 14,882 FNMA 6.625%, 10/15/07 20,000 22,435 5.500%, 02/15/06 25,000 26,723 5.250%, 08/01/12 1,970 2,003 3.875%, 11/17/08 20,000 19,917 1.875%, 09/15/05 10,000 9,979 FNMA, MTN 1.060%, 07/20/04 10,000 9,987 -------- Total U.S. Government Agency Obligations (Cost $189,741) 188,629 -------- U.S. TREASURY OBLIGATIONS (11.5%) U.S. Treasury Bond 1.875%, 07/15/13 (K) 10,060 9,950 - -------------------------------------------------------------------------------- SHARES/FACE Amount (000) Value (000) - -------------------------------------------------------------------------------- U.S. Treasury Notes 5.875%, 11/15/04 to 11/15/05 (K) $15,000 $ 15,793 4.375%, 08/15/12 2,000 2,028 4.250%, 08/15/13 (K) 2,000 1,992 4.000%, 11/15/12 (K) 2,000 1,969 3.375%, 01/15/07 7,003 7,567 3.125%, 09/15/08 (K) 10,000 9,920 2.375%, 08/15/06 (K) 10,000 9,993 1.750%, 12/31/04 10,000 10,032 -------- Total U.S. Treasury Obligations (Cost $69,544) 69,244 -------- MORTGAGE RELATED (1.5%) JP Morgan Mortgage Trust, Ser 2003-A2, Cl 2A2 4.723%, 11/25/33 9,000 9,079 -------- Total Mortgage Related (Cost $8,977) 9,079 -------- SHORT-TERM INVESTMENT (5.9%) Boston Global Investment Trust -- Enhanced Portfolio (L) 35,693,750 35,694 -------- Total Short-Term Investment (Cost $35,694) 35,694 -------- CASH EQUIVALENTS (0.1%) Federated Prime Value Money Market Fund 349,730 350 SEI Liquid Asset Trust, Prime Obligation Fund 3,950 4 -------- Total Cash Equivalents (Cost $354) 354 -------- REPURCHASE AGREEMENTS (9.0%) Merrill Lynch, 0.995%, dated 11/28/03, to be repurchased on 12/01/03, repurchase price $9,171,400 (collateralized by U.S. Government Obligations; total market value $9,356,339) (G) $ 9,171 9,171 Morgan Stanley, 0.995%, dated 11/28/03, to be repurchased on 12/01/03, repurchase price $44,992,629 (collateralized by U.S. Government Obligations; total market value $46,805,445) (G) 44,992 44,992 -------- Total Repurchase Agreements (Cost $54,163) 54,163 -------- Total Investments (109.7%) (Cost $658,428) 659,218 -------- 24 - -------------------------------------------------------------------------------- (UNAUDITED) - -------------------------------------------------------------------------------- VALUE (000) - -------------------------------------------------------------------------------- OTHER ASSETS AND LIABILITIES (-9.7%) Payable for Investment Securities Purchased $ (42,240) Payable Upon Return of Securities Loaned (35,694) Investment Advisory Fees Payable (297) Distribution Fees Payable (56) Administration Fees Payable (35) Custody Fees Payable (11) Transfer Agency Shareholder Servicing Fees Payable (1) Other Assets and Liabilities, Net 19,888 -------- Total Other Assets and Liabilities (58,446) -------- NET ASSETS: Paid in Capital -- T Shares (unlimited authorization -- no par value) based on 45,468,294 outstanding shares of beneficial interest 469,630 Paid in Capital -- A Shares (unlimited authorization -- no par value) based on 1,083,467 outstanding shares of beneficial interest 11,395 Paid in Capital -- L Shares (unlimited authorization -- no par value) based on 11,889,620 outstanding shares of beneficial interest 124,993 Distributions in excess of net investment income (2,037) Accumulated net realized loss on investments (3,999) Net unrealized appreciation on investments 790 -------- Total Net Assets (100.0%) $600,772 ======== Net Asset Value, Offering and Redemption Price Per Share -- T Shares ($467,378,254 / 45,468,294 shares) $10.28 ======== Net Asset Value and Redemption Price Per Share -- A Shares ($11,120,143 / 1,083,467 shares) $10.26 ======== Maximum Offering Price Per Share -- A Shares ($10.26 / 97.50%) $10.52 ======== Net Asset Value and Offering Price Per Share -- L Shares (1) ($122,273,697 / 11,889,620 shares) $10.28 ======== THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS. FOR DESCRIPTIONS OF ABBREVIATIONS AND FOOTNOTES, PLEASE SEE PAGE 48. 25 STATEMENT OF NET ASSETS - -------------------------------------------------------------------------------- STI CLASSIC FIXED INCOME FUNDS NOVEMBER 30, 2003 MARYLAND MUNICIPAL BOND FUND - -------------------------------------------------------------------------------- FACE AMOUNT (000) VALUE (000) - -------------------------------------------------------------------------------- MUNICIPAL BONDS (97.0%) MARYLAND (90.4%) Annapolis, Public Improvements, GO 5.000%, 04/01/08 $1,395 $ 1,551 Anne Arundel County, GO 6.000%, 02/01/07 1,000 1,124 Baltimore County, Pension Funding, GO 4.500%, 06/01/09 1,000 1,100 Baltimore, GO, MBIA 7.000%, 10/15/10 1,365 1,703 Baltimore, Pollution Control, General Motors Project, RB 5.350%, 04/01/08 1,160 1,267 Baltimore, Ser A, RB, FGIC 5.900%, 07/01/10 1,000 1,175 5.900%, 07/01/13 900 1,066 Calvert County, GO 5.000%, 07/15/08 1,000 1,116 Frederick County, GO Callable 07/01/09 @ 101 5.250%, 07/01/11 1,000 1,117 Howard County, Consolidated Public Improvements Project, Ser A, GO Callable 02/15/12 @ 100 5.250%, 08/15/14 1,000 1,115 Howard County, Metropolitan District Project, Ser A, GO Callable 02/15/12 @ 100 5.250%, 08/15/13 1,100 1,237 Howard County, Metropolitan District Project, Ser A, GO Prerefunded @ 100 5.250%, 02/15/12 80 91 Maryland State, 1st Ser, GO Callable 03/01/08 @ 101 5.000%, 03/01/10 1,000 1,109 4.750%, 03/01/09 500 550 Maryland State, 2nd Ser, GO Callable 07/15/09 @ 101 5.250%, 07/15/12 1,000 1,121 Maryland State, 3rd Ser, GO 5.000%, 10/15/06 750 821 Maryland State, Community Development Administration, Ser 2001B, RB, FHA, AMT 4.100%, 07/01/08 285 301 Maryland State, Community Development Administration, Ser C, RB, FHA Callable 03/01/10 @ 100 5.650%, 09/01/12 475 500 - -------------------------------------------------------------------------------- FACE AMOUNT (000) VALUE (000) - -------------------------------------------------------------------------------- Maryland State, Community Development Administration, Ser E, RB, FHA Callable 09/01/09 @ 100 5.700%, 09/01/17 $ 900 $ 955 Maryland State, Community Development Administration, Ser F, RB, AMT Callable 09/01/09 @ 100 5.900%, 09/01/19 1,000 1,059 Maryland State, Community Development Administration, Single-Family Housing, 1st Ser, RB, FHA Callable 04/01/07 @ 101.5 5.600%, 04/01/18 290 305 Maryland State, Community Development Administration, Single-Family Program, 2nd Ser, RB, AMT 4.700%, 04/01/11 1,000 1,058 Maryland State, Economic Development Corporation, Department of Transportation Headquarters Project, RB Callable 06/01/12 @ 100.5 5.375%, 06/01/19 1,000 1,092 Maryland State, Economic Development Corporation, Frostburg State University Project, Ser A, RB Callable 10/01/12 @ 101 5.500%, 10/01/15 250 258 Maryland State, Economic Development Corporation, Student Housing, University of Maryland, Ser A, RB Callable 10/01/13 @ 100 5.625%, 10/01/23 500 503 Maryland State, Economic Development Corporation, University Village at Sheppard Pratt Project, RB, ACA Callable 07/01/11 @ 101 5.875%, 07/01/21 250 268 Maryland State, Economic Development Corporation, University of Maryland College Park Project, RB Callable 06/01/13 @ 100 5.750%, 06/01/18 475 497 26 - -------------------------------------------------------------------------------- (UNAUDITED) - -------------------------------------------------------------------------------- FACE AMOUNT (000) VALUE (000) - -------------------------------------------------------------------------------- Maryland State, Health & Higher Educational Facilities Authority, Board of Child Care Project, RB 4.500%, 07/01/09 $ 725 $ 785 Maryland State, Health & Higher Educational Facilities Authority, Board of Child Care Project, RB Callable 07/01/12 @ 100 5.500%, 07/01/13 1,000 1,117 Maryland State, Health & Higher Educational Facilities Authority, Carroll County General Hospital, RB 4.400%, 07/01/09 910 958 Maryland State, Health & Higher Educational Facilities Authority, Carroll County General Hospital, RB Callable 07/01/12 @ 100 6.000%, 07/01/18 1,035 1,131 6.000%, 07/01/21 250 269 Maryland State, Health & Higher Educational Facilities Authority, Catholic Health Initiatives, Ser A, RB Callable 06/01/10 @ 101 6.000%, 12/01/24 250 279 Maryland State, Health & Higher Educational Facilities Authority, Hebrew Home of Greater Washington, RB Callable 01/01/12 @ 100 5.700%, 01/01/21 480 503 5.700%, 01/01/22 510 532 Maryland State, Health & Higher Educational Facilities Authority, Mercy Ridge Project, Ser B, RB Callable 04/01/06 @ 101 5.000%, 04/01/08 300 308 Maryland State, Health & Higher Educational Facilities Authority, Mercy Ridge Project, Ser D, RB (LOC: Manufacturers & Traders) (C) Callable 01/02/04 @ 100 1.120%, 04/01/28 1,095 1,095 Maryland State, Health & Higher Educational Facilities Authority, North Arundel Hospital Project, RB Callable 07/01/10 @ 101 6.500%, 07/01/26 400 431 - -------------------------------------------------------------------------------- FACE AMOUNT (000) VALUE (000) - -------------------------------------------------------------------------------- Maryland State, Health & Higher Educational Facilities Authority, North Arundel Hospital Project, Ser A, RB (LOC: Citizens Trust Co.) (C) Callable 01/02/04 @ 100 1.100%, 07/01/32 $ 500 $ 500 Maryland State, Health & Higher Educational Facilities Authority, Union Hospital of Cecil County Project, RB Callable 07/01/12 @ 100 5.750%, 07/01/20 500 533 Maryland State, Health & Higher Educational Facilities Authority, University of Maryland Medical Project, RB 6.000%, 07/01/05 100 106 5.000%, 07/01/09 1,020 1,113 Maryland State, Health & Higher Educational Facilities Authority, University of Maryland Medical Project, RB Callable 07/01/11 @ 100 5.750%, 07/01/21 1,725 1,828 Maryland State, Industrial Development Financing Authority, Baltimore Aquarium Project, Ser B, RB Callable 11/01/12 @ 100 5.500%, 11/01/17 500 550 Maryland State, Ser A, GO 5.500%, 08/01/14 1,000 1,166 Maryland State, Stadium Authority, Sports Facility Project, RB, AMBAC Callable 03/01/06 @ 101 5.800%, 03/01/26 250 270 Maryland State, Transportation Authority, Baltimore/ Washington International Airport, Ser B, RB, AMBAC, AMT Callable 03/01/12 @ 101 5.375%, 03/01/15 1,000 1,094 Montgomery County, Housing Opportunity, Aston Woods Apartments Project, Ser A, RB Callable 05/15/08 @ 102 4.900%, 05/15/31 600 637 27 STATEMENT OF NET ASSETS - -------------------------------------------------------------------------------- STI CLASSIC FIXED INCOME FUNDS NOVEMBER 30, 2003 MARYLAND MUNICIPAL BOND FUND--CONCLUDED - -------------------------------------------------------------------------------- FACE AMOUNT (000) VALUE (000) - -------------------------------------------------------------------------------- Montgomery County, Housing Opportunity, Housing Development Project, RB Callable 07/01/10 @ 100 6.000%, 07/01/20 $ 990 $ 1,050 Montgomery County, Housing Opportunity, Single-Family Mortgage, Ser A, RB Callable 01/01/11 @ 100 4.450%, 07/01/17 290 305 Montgomery County, Ser A, GO 5.700%, 07/01/05 675 722 Montgomery County, Trinity Healthcare Group, RB Callable 12/01/11 @ 100 5.500%, 12/01/16 1,000 1,098 Northeast Maryland, Waste Disposal Authority, Resources Recovery Project, Ser A, RB, AMT 6.000%, 07/01/06 1,080 1,173 Prince Georges County, Housing Authority, Emerson House Project, Ser A, RB Callable 10/15/04 @ 102 7.000%, 04/15/19 500 528 St. Mary's County, GO 5.500%, 07/01/11 1,165 1,353 Talbot County, GO Callable 03/15/12 @ 101 5.375%, 03/15/17 1,455 1,613 University of Maryland, Ser A, RB 5.000%, 04/01/05 400 420 Washington, Suburban Sanitation District, GO Callable 06/01/04 @ 102 4.625%, 06/01/06 750 778 -------- 48,304 -------- PUERTO RICO (6.6%) Puerto Rico Commonwealth, GO, MBIA 5.650%, 07/01/15 1,500 1,766 Puerto Rico Commonwealth, Housing Bank & Finance Agency, Affordable Housing Mortgage Portfolio, Ser I, RB, AMT, GNMA Callable 04/01/05 @ 102 6.250%, 04/01/29 625 64 - -------------------------------------------------------------------------------- SHARES/FACE AMOUNT (000) VALUE (000) - -------------------------------------------------------------------------------- Puerto Rico Commonwealth, Ser A, GO 5.500%, 07/01/17 $ 500 $ 577 Puerto Rico Commonwealth, Ser A, GO, MBIA Callable 08/01/11 @ 100 5.500%, 08/01/20 500 560 -------- 3,552 -------- Total Municipal Bonds (Cost $49,707) 51,856 -------- CASH EQUIVALENT (1.7%) Federated Tax-Free Obligation Fund 886,438 886 -------- Total Cash Equivalent (Cost $886) 886 -------- Total Investments (98.7%) (Cost $50,593) 52,742 -------- OTHER ASSETS AND LIABILITIES (1.3%) Investment Advisory Fees Payable (25) Distribution Fees Payable (19) Administration Fees Payable (3) Other Assets and Liabilities, Net 720 -------- Total Other Assets and Liabilities 673 -------- NET ASSETS: Paid in Capital -- T shares (unlimited authorization -- no par value) based on 2,673,554 outstanding shares of beneficial interest 26,413 Paid in Capital -- L shares (unlimited authorization -- no par value) based on 2,316,043 outstanding shares of beneficial interest 23,786 Distributions in excess of net investment income (19) Accumulated net realized gain on investments1,086 Net unrealized appreciation on investments 2,149 -------- Total Net Assets (100.0%) $53,415 ======== Net Asset Value, Offering and Redemption Price Per Share -- T Shares ($28,593,849 / 2,673,554 shares) $10.70 ======== Net Asset Value and Offering Price Per Share -- L Shares (1) ($24,821,263 / 2,316,043 shares) $10.72 ======== THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS. FOR DESCRIPTIONS OF ABBREVIATIONS AND FOOTNOTES, PLEASE SEE PAGE 48. 28 - -------------------------------------------------------------------------------- (UNAUDITED) SHORT-TERM BOND FUND - -------------------------------------------------------------------------------- FACE AMOUNT (000) VALUE (000) - -------------------------------------------------------------------------------- CORPORATE OBLIGATIONS (53.5%) AEROSPACE & DEFENSE (1.0%) Boeing Capital (K) 5.650%, 05/15/06 $ 3,300 $ 3,508 -------- AIR TRANSPORTATION (0.6%) FedEx 6.625%, 02/12/04 2,150 2,171 -------- AUTOMOTIVE (0.7%) DaimlerChrysler 7.750%, 06/15/05 2,250 2,418 -------- BANKS (5.2%) Bank of America 6.625%, 06/15/04 4,925 5,067 6.500%, 03/15/06 1,180 1,280 KFW International Finance, Ser DTC 4.750%, 01/24/07 3,000 3,191 Wachovia 6.800%, 06/01/05 3,500 3,741 Wells Fargo (K) 6.625%, 07/15/04 4,025 4,151 -------- 17,430 -------- BROADCASTING (1.4%) Comcast Cablevision 8.375%, 05/01/07 1,425 1,639 Liberty Media (K) 3.500%, 09/25/06 1,710 1,702 Univision Communications 2.875%, 10/15/06 1,275 1,260 -------- 4,601 -------- FINANCE (13.9%) CIT Group (K) 4.125%, 02/21/06 3,555 3,662 Citigroup (K) 6.750%, 12/01/05 4,500 4,882 Countrywide Home Loan, Ser J, MTN (K) 5.500%, 08/01/06 3,125 3,320 EOP Operating LP 8.375%, 03/15/06 1,505 1,680 First American Bank 7.750%, 07/15/04 5,000 5,171 Ford Motor Credit 7.500%, 03/15/05 1,675 1,764 6.875%, 02/01/06 1,700 1,789 General Electric Capital, Ser A, MTN (K) 2.850%, 01/30/06 4,850 4,892 General Motors Acceptance (K) - -------------------------------------------------------------------------------- FACE AMOUNT (000) VALUE (000) - -------------------------------------------------------------------------------- 6.750%, 01/15/06 $ 825 $ 879 General Motors Acceptance, MTN 6.380%, 01/30/04 1,675 1,689 Household Finance (K) 6.000%, 05/01/04 5,000 5,100 International Lease Finance 5.750%, 10/15/06 1,974 2,113 National Rural Utilities 3.000%, 02/15/06 4,160 4,191 SLM, Ser A, MTN (C) 1.340%, 09/15/06 5,800 5,805 -------- 46,937 -------- FOOD, BEVERAGE & TOBACCO (1.0%) Conagra Foods 7.500%, 09/15/05 1,690 1,838 Safeway 6.150%, 03/01/06 1,575 1,682 -------- 3,520 -------- INDUSTRIAL (8.5%) Amerada Hess 5.900%, 08/15/06 1,525 1,633 Anadarko Petroleum 3.250%, 05/01/08 1,835 1,792 Coca Cola Enterprises 6.625%, 08/01/04 4,000 4,128 Diageo Capital PLC 3.375%, 03/20/08 1,000 988 IBM 6.000%, 11/30/04 3,500 3,646 Ingersoll-Rand 5.800%, 06/01/04 1,900 1,941 Kellogg 6.625%, 01/29/04 3,000 3,023 Kerr-McGee 5.375%, 04/15/05 1,775 1,837 Kroger 7.375%, 03/01/05 1,575 1,673 Masco 6.750%, 03/15/06 1,600 1,742 Phillips Petroleum 8.500%, 05/25/05 3,750 4,097 Weyerhaeuser 6.125%, 03/15/07 2,000 2,150 -------- 28,650 -------- INSURANCE (2.4%) Allstate 7.875%, 05/01/05 4,300 4,644 MetLife 3.911%, 05/15/05 2,250 2,315 Safeco (K) 29 STATEMENT OF NET ASSETS - -------------------------------------------------------------------------------- STI CLASSIC FIXED INCOME FUNDS NOVEMBER 30, 2003 SHORT-TERM BOND FUND--CONCLUDED - -------------------------------------------------------------------------------- FACE AMOUNT (000) VALUE (000) - -------------------------------------------------------------------------------- 4.200%, 02/01/08 $ 1,110 $ 1,115 -------- 8,074 -------- INVESTMENT BANKERS/BROKER DEALERS (9.6%) Bear Stearns 5.700%, 01/15/07 4,610 4,964 Credit Suisse First Boston (K) 5.875%, 08/01/06 3,250 3,494 Goldman Sachs Group 7.625%, 08/17/05 3,500 3,820 JP Morgan Chase 5.250%, 05/30/07 2,005 2,127 Lehman Brothers Holdings 7.750%, 01/15/05 4,000 4,290 Merrill Lynch, Ser B, MTN 3.375%, 09/14/07 5,175 5,192 Morgan Stanley Dean Witter 7.750%, 06/15/05 3,875 4,205 Paine Webber Group 6.375%, 05/15/04 4,300 4,401 -------- 32,493 -------- RETAIL (0.5%) Nordstrom 8.950%, 10/15/05 1,600 1,772 -------- SERVICES (1.2%) Viacom 7.750%, 06/01/05 2,500 2,703 7.150%, 05/20/05 1,350 1,449 -------- 4,152 -------- TELEPHONES & TELECOMMUNICATIONS (3.9%) AT&T Wireless 7.500%, 05/01/07 2,000 2,217 British Telecom PLC 7.875%, 12/15/05 4,000 4,405 Deutsche Telekom International Finance 8.250%, 06/15/05 900 978 Verizon Wireless (K) 5.375%, 12/15/06 2,000 2,124 Vodafone Group PLC (B) 7.625%, 02/15/05 3,125 3,337 -------- 13,061 -------- TRANSPORTATION (1.1%) Union Pacific 5.840%, 05/25/04 3,500 3,564 -------- UTILITIES (2.5%) Alabama Power, Ser X 3.125%, 05/01/08 815 798 - ------------------------------------------------------------------------------- FACE AMOUNT (000) VALUE (000) - ------------------------------------------------------------------------------- Dominion Resources, Ser B 7.625%, 07/15/05 $ 1,500 $ 1,624 Scottish Power PLC, Ser H, MTN 6.750%, 07/15/04 2,500 2,576 Southern New England Telephone, Ser C, MTN 6.125%, 12/15/03 3,500 3,504 -------- 8,502 -------- Total Corporate Obligations (Cost $177,698) 180,853 -------- U.S. GOVERNMENT AGENCY OBLIGATIONS (22.6%) FHLB 3.875%, 12/15/04 5,000 5,120 3.250%, 08/15/05 7,500 7,652 2.625%, 05/15/07 1,625 1,600 2.500%, 03/15/06 8,250 8,265 FHLMC 4.250%, 06/15/05 6,750 6,990 3.000%, 07/15/04 5,250 5,307 FHLMC, MTN 2.050%, 07/14/06 7,000 6,913 FHLMC, Ser 2558 Cl BA 2.250%, 07/06/05 3,500 3,503 FNMA 3.875%, 03/15/05 (K) 10,000 10,286 3.500%, 09/15/04 8,500 8,642 1.875%, 12/15/04 7,000 7,029 FNMA, Ser 9 Cl UA 5.500%, 07/15/06 4,750 5,094 -------- Total U.S. Government Agency Obligations (Cost $76,250) 76,401 -------- U.S. GOVERNMENT MORTGAGE-BACKED OBLIGATIONS (8.8%) FHLMC 6.000%, 07/01/06 593 611 5.000%, 05/15/11 2,853 2,901 4.000%, 07/01/08 4,619 4,679 FHLMC (C) 3.362%, 07/01/33 5,043 5,084 FNMA 7.000%, 01/01/27 218 231 4.000%, 11/25/16 4,250 4,307 FNMA (C) 3.202%, 05/01/33 5,060 5,053 3.175%, 09/01/33 4,163 4,298 3.153%, 10/01/33 2,320 2,391 GNMA 8.000%, 11/15/09 316 339 -------- Total U.S. Government Mortgage-Backed Obligations (Cost $29,911) 29,894 -------- 30 - ------------------------------------------------------------------------------- (UNAUDITED) - ------------------------------------------------------------------------------- SHARES/FACE AMOUNT (000) VALUE (000) - ------------------------------------------------------------------------------- ASSET-BACKED OBLIGATIONS (6.7%) Bank One Issuance Trust, Ser 2002-A4, Cl A4 2.940%, 06/16/08 $ 4,500 $ 4,554 Capital Auto Receivables Asset Trust, Ser 2002-3, Cl A3 3.580%, 10/16/06 4,500 4,605 Capital Auto Receivables Asset Trust, Ser 2002-4, Cl A4 2.640%, 03/17/08 2,000 2,006 Citibank Credit Card Issuance Trust, Ser 2001-A8, Cl A8 4.100%, 12/07/06 4,875 4,997 Equivantage Home Equity Loan Trust, Ser 1996-1, Cl A 7.300%, 10/25/25 135 135 Ford Credit Auto Owner Trust, Ser 2002-A, Cl A3A 3.620%, 01/15/06 1,877 1,896 Honda Auto Receivables Owner Trust, Ser 2002-1, Cl A3 3.500%, 10/17/05 2,829 2,854 Honda Auto Receivables Owner Trust, Ser 2002-3, Cl A4 3.610%, 12/18/07 1,500 1,536 -------- Total Asset-Backed Obligations (Cost $22,351) 22,583 -------- U.S. TREASURY OBLIGATIONS (5.0%) U.S. Treasury Notes 5.875%, 11/15/04 to 11/15/05 (K) 10,000 10,582 5.750%, 11/15/05 (K) 3,250 3,482 3.125%, 10/15/08 2,900 2,873 -------- Total U.S. Treasury Obligations (Cost $16,947) 16,937 -------- FOREIGN GOVERNMENT DEBT SECURITIES (1.9%) CANADA (1.9%) Province of Ontario 7.000%, 08/04/05 4,000 4,315 Quebec Province 5.500%, 04/11/06 2,000 2,145 -------- Total Foreign Government Debt Securities (Cost $6,110) 6,460 -------- SHORT-TERM INVESTMENT (11.3%) Boston Global Investment Trust -- Enhanced Portfolio (L) 38,343,308 38,343 -------- Total Short-Term Investment (Cost $38,343) 38,343 ------- - ------------------------------------------------------------------------------- SHARES VALUE (000) - ------------------------------------------------------------------------------- CASH EQUIVALENTS (0.5%) Federated Prime Obligation Money Market Fund 251,741 $ 252 Federated Prime Value Money Market Fund 1,475,673 1,476 -------- Total Cash Equivalents (Cost $1,728) 1,728 -------- Total Investments (110.3%) (Cost $369,338) 373,199 -------- OTHER ASSETS AND LIABILITIES (-10.3%) Payable Upon Return of Securities Loaned (38,343) Investment Advisory Fees Payable (169) Administration Fees Payable (20) Distribution Fees Payable (11) Custody Fees Payable (6) Other Assets and Liabilities, Net 3,563 -------- Total Other Assets and Liabilities (34,986) -------- NET ASSETS: Paid in Capital -- T Shares (unlimited authorization -- no par value) based on 30,266,096 outstanding shares of beneficial interest 306,734 Paid in Capital -- A Shares (unlimited authorization -- no par value) based on 771,797 outstanding shares of beneficial interest 7,787 Paid in Capital -- L Shares (unlimited authorization -- no par value) based on 3,038,825 outstanding shares of beneficial interest 30,642 Distributions in excess of net investment income (65) Accumulated net realized loss on investments (10,746) Net unrealized appreciation on investments 3,861 -------- Total Net Assets (100.0%) $338,213 ======== Net Asset Value, Offering and Redemption Price Per Share -- T Shares ($300,318,847 / 30,266,096 shares) $9.92 ======== Net Asset Value and Redemption Price Per Share -- A Shares ($7,677,530 / 771,797 shares) $9.95 ======== Maximum Offering Price Per Share -- A Shares ($9.95 / 98.00%) $10.15 ======== Net Asset Value and Offering Price Per Share -- L Shares (1) ($30,216,888 / 3,038,825 shares) $9.94 ======== THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS. FOR DESCRIPTIONS OF ABBREVIATIONS AND FOOTNOTES, PLEASE SEE PAGE 48. 31 STATEMENT OF NET ASSETS - -------------------------------------------------------------------------------- STI CLASSIC FIXED INCOME FUNDS NOVEMBER 30, 2003 SHORT-TERM U.S. TREASURY SECURITIES FUND - -------------------------------------------------------------------------------- SHARES/FACE AMOUNT (000) VALUE (000) - -------------------------------------------------------------------------------- U.S. TREASURY OBLIGATIONS (98.9%) U.S. Treasury Notes 3.000%, 01/31/04 $25,000 $ 25,082 5.875%, 11/15/04 5,000 5,211 1.750%, 12/31/04 10,000 10,032 1.625%, 01/31/05 30,000 30,037 7.500%, 02/15/05 5,000 5,356 1.625%, 04/30/05 15,000 15,000 1.250%, 05/31/05 15,000 14,906 1.500%, 07/31/05 10,000 9,950 6.500%, 08/15/05 25,000 26,954 5.875%, 11/15/05 10,000 10,743 5.750%, 11/15/05 15,000 16,069 5.625%, 02/15/06 10,000 10,755 2.000%, 05/15/06 10,000 9,937 7.000%, 07/15/06 5,000 5,587 6.500%, 10/15/06 20,000 22,212 -------- Total U.S. Treasury Obligations (Cost $217,377) 217,831 -------- CASH EQUIVALENT (0.6%) Federated U.S. Treasury Cash Reserves Fund 1,251,876 1,252 -------- Total Cash Equivalent (Cost $1,252) 1,252 -------- Total Investments (99.5%) (Cost $218,629) 219,083 -------- OTHER ASSETS AND LIABILITIES (0.5%) Investment Advisory Fees Payable (109) Distribution Fees Payable (30) Administration Fees Payable (13) Custody Fees Payable (1) Other Assets and Liabilities, Net 1,183 -------- Total Other Assets and Liabilities 1,030 -------- - -------------------------------------------------------------------------------- VALUE (000) - -------------------------------------------------------------------------------- NET ASSETS: Paid in Capital -- T Shares (unlimited authorization -- no par value) based on 10,083,533 outstanding shares of beneficial interest $100,580 Paid in Capital -- A Shares (unlimited authorization -- no par value) based on 1,642,821 outstanding shares of beneficial interest 16,885 Paid in Capital -- L Shares (unlimited authorization -- no par value) based on 9,721,178 outstanding shares of beneficial interest 98,906 Accumulated net realized gain on investments 3,288 Net unrealized appreciation on investments 454 -------- Total Net Assets (100.0%) $220,113 ======== Net Asset Value, Offering and Redemption Price Per Share -- T Shares ($103,587,104 / 10,083,533 shares) $10.27 ======== Net Asset Value and Redemption Price Per Share -- A Shares ($16,861,460 / 1,642,821 shares) $10.26 ======== Maximum Offering Price Per Share -- A Shares ($10.26 / 99.00%) $10.36 ======== Net Asset Value and Offering Price Per Share -- L Shares (1) ($99,664,399 / 9,721,178 shares) $10.25 ======== THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS. FOR DESCRIPTIONS OF ABBREVIATIONS AND FOOTNOTES, PLEASE SEE PAGE 48. 32 - -------------------------------------------------------------------------------- (UNAUDITED) STRATEGIC INCOME FUND - -------------------------------------------------------------------------------- FACE AMOUNT (000) VALUE (000) - -------------------------------------------------------------------------------- CORPORATE OBLIGATIONS (41.0%) AEROSPACE & DEFENSE (0.9%) L-3 Communications Callable 07/15/08 @ 103.063 6.125%, 07/15/13 $ 1,000 $ 993 Sequa 9.000%, 08/01/09 1,000 1,090 -------- 2,083 -------- AUTOPARTS (2.0%) Cummins (B) 9.500%, 12/01/10 500 574 Dana 6.500%, 03/15/08 1,000 1,000 Eagle-Picher Industries (B) Callable 09/01/08 @ 104.875 9.750%, 09/01/13 500 531 Metaldyne Callable 06/15/07 @ 105.5 11.000%, 06/15/12 1,000 850 RJ Tower (B) (K) 12.000%, 06/01/13 500 471 TRW Automotive (B) 9.375%, 02/15/13 1,000 1,130 -------- 4,556 -------- BROADCASTING (1.8%) Albritton Communications Callable 12/15/07 @ 103.88 7.750%, 12/15/12 1,000 1,017 Corus Entertainment Callable 03/01/07 @ 104.375 8.750%, 03/01/12 500 548 Entravision Communications Callable 03/15/06 @ 104.063 8.125%, 03/15/09 500 533 Paxson Communications (A) Callable 01/15/06 @ 106.12 7.513%, 01/15/09 1,000 855 Spanish Broadcasting Callable 11/01/04 @ 104.813 9.625%, 11/01/09 1,000 1,055 -------- 4,008 -------- BUILDING & CONSTRUCTION (2.2%) K. Hovnanian Enterprises (K) Callable 04/01/07 @ 104.438 8.875%, 04/01/12 1,000 1,094 NVR 5.000%, 06/15/10 500 491 Standard Pacific 9.250%, 04/15/12 1,000 1,110 - -------------------------------------------------------------------------------- FACE AMOUNT (000) VALUE (000) - -------------------------------------------------------------------------------- WCI Communities Callable 02/15/06 @ 105.313 10.625%, 02/15/11 $ 500 $ 560 WCI Communities Callable 05/01/07 @ 104.56 9.125%, 05/01/12 500 548 William Lyon Homes 10.750%, 04/01/13 1,000 1,121 -------- 4,924 -------- CABLE (2.2%) Adelphia Communications (J) 10.875%, 10/01/10 750 623 Charter Communications Holdings 10.750%, 10/01/09 750 641 Echostar DBS Callable 01/15/06 @ 104.563 9.125%, 01/15/09 324 361 Echostar DBS Callable 10/01/04 @ 105.188 10.375%, 10/01/07 600 657 Insight Midwest LP (K) Callable 10/01/04 @ 104.875 9.750%, 10/01/09 1,000 1,055 Mediacom LLC (K) Callable 01/15/06 @ 104.75 9.500%, 01/15/13 1,250 1,241 Mediacom LLC, Ser B (K) Callable 04/15/04 @ 102.833 8.500%, 04/15/08 250 246 -------- 4,824 -------- CHEMICALS (2.4%) Acetex (B) Callable 08/01/05 @ 105.44 10.875%, 08/01/09 500 555 Compass Minerals Group Callable 08/15/06 @ 105 10.000%, 08/15/11 500 556 Equistar Chemical (B) Callable 05/01/07 @ 105.313 10.625%, 05/01/11 1,000 1,060 HMP Equity Holdings (A) (B) 14.050%, 05/15/08 1,000 530 Huntsman (B) (K) Callable 10/15/07 @ 105.81 11.625%, 10/15/10 500 490 IMC Global, Ser B Callable 06/01/06 @ 105.62 11.250%, 06/01/11 500 530 IMC Global, Ser B Callable 06/01/06 @ 105.63 11.250%, 06/01/11 500 530 33 STATEMENT OF NET ASSETS - -------------------------------------------------------------------------------- STI CLASSIC FIXED INCOME FUNDS NOVEMBER 30, 2003 STRATEGIC INCOME FUND--CONTINUED - -------------------------------------------------------------------------------- FACE AMOUNT (000) Value (000) - -------------------------------------------------------------------------------- OM Group Callable 12/15/06 @ 104.625 9.250%, 12/15/11 $ 500 $ 506 Westlake Chemical (B) Callable 07/15/07 @ 104.38 8.750%, 07/15/11 500 538 -------- 5,295 -------- CONSUMER PRODUCTS (0.8%) American Achievement, Ser B Callable 01/01/05 @ 105.813 11.625%, 01/01/07 750 827 Chattem, Ser B Callable 04/01/04 @ 102.958 8.875%, 04/01/08 1,000 1,030 -------- 1,857 -------- ENERGY (2.2%) Chesapeake Energy 9.000%, 08/15/12 1,000 1,145 Denbury Resources Callable 04/01/08 @ 103.75 7.500%, 04/01/13 500 519 Energy Partners 8.750%, 08/01/10 750 780 Peabody Energy, Ser B Callable 03/15/08 @ 103.44 6.875%, 03/15/13 1,000 1,052 Premcor Refining Group (B) Callable 02/01/08 @ 103.88 7.750%, 02/01/12 500 509 Swift Energy Callable 05/01/07 @ 104.688 9.375%, 05/01/12 500 549 Westport Resources (B) 8.250%, 11/01/11 250 272 -------- 4,826 -------- ENTERTAINMENT (3.2%) Bally Total Fitness Holding (B) Callable 07/15/07 @ 105.25 10.500%, 07/15/11 500 499 Boyd Gaming (B) Callable 12/15/07 @ 103.875 7.750%, 12/15/12 500 526 Kerzner International Callable 08/15/06 @ 104.438 8.875%, 08/15/11 1,000 1,087 Mandalay Resort Group 10.250%, 08/01/07 1,000 1,147 - -------------------------------------------------------------------------------- FACE AMOUNT (000) VALUE (000) - -------------------------------------------------------------------------------- Resort International Hotel & Casino Callable 03/15/07 @ 106 11.500%, 03/15/09 $ 500 $ 531 Royal Caribbean Cruises (K) 8.750%, 02/02/11 1,000 1,120 Six Flags (K) Callable 02/01/06 @ 104.44 8.875%, 02/01/10 1,000 978 Venetian Casino Callable 06/15/06 @ 105.5 11.000%, 06/15/10 1,000 1,158 -------- 7,046 -------- FOOD, BEVERAGE & TOBACCO (1.3%) Burns Philp Capital Property (B) Callable 07/15/07 @ 104.875 9.750%, 07/15/12 1,000 1,037 Land O Lakes, Ser B Callable 11/15/06 @ 104.38 8.750%, 11/15/11 1,000 920 RJ Reynolds Tobacco Holdings, Ser B 7.750%, 05/15/06 1,000 1,048 -------- 3,005 -------- HOTELS & LODGING (0.5%) Host Marriott, Ser B, Callable 08/01/04 @ 103.99 7.875%, 08/01/08 1,000 1,033 -------- INDUSTRIAL (3.1%) AK Steel (K) Callable 06/15/07 @ 103.875 7.750%, 06/15/12 1,000 675 Case 7.250%, 08/01/05 1,000 1,035 Case New Holland (B) Callable 08/01/07 @ 104.625 9.250%, 08/01/11 500 560 Constar (K) Callable 12/01/07 @ 105.5 11.000%, 12/01/12 500 402 Foamex LP Callable 04/01/06 @ 105.375 10.750%, 04/01/09 500 449 Gerdau Ameristeel (B) (K) Callable 07/15/07 @ 105.375 10.375%, 07/15/11 1,000 1,060 NMGH Holding Callable 05/15/06 @ 105 10.000%, 05/15/09 500 551 34 - -------------------------------------------------------------------------------- (UNAUDITED) - -------------------------------------------------------------------------------- FACE AMOUNT (000) VALUE (000) - -------------------------------------------------------------------------------- Sanmina-SCI Callable 01/15/07 @ 105.188 10.375%, 01/15/10 $ 500 $ 583 Trimas Callable 06/15/07 @ 104.938 9.875%, 06/15/12 1,000 1,030 United States Steel Callable 05/15/07 @ 104.88 9.750%, 05/15/10 500 536 -------- 6,881 -------- INSURANCE (0.9%) Markel Cap Trust, Ser B 8.710%, 01/01/46 1,450 1,488 Transamerica Capital 7.625%, 11/15/37 475 496 -------- 1,984 -------- MEDICAL & MEDICAL PRODUCTS (2.9%) Ameripath Callable 04/01/08 @ 105.25 10.500%, 04/01/13 1,000 1,055 Apogent Technologies TBA (B) Callable 05/15/08 @ 103.25 6.500%, 05/15/13 500 519 Fisher Scientific International Callable 05/01/07 @ 104.06 8.125%, 05/01/12 435 467 Healthsouth (J) Callable 10/01/04 @ 105.375 10.750%, 10/01/08 750 690 Pacificare Health Systems Callable 06/01/06 @ 105.375 10.750%, 06/01/09 1,000 1,147 Rotech Healthcare 9.500%, 04/01/12 1,000 1,040 United Surgical Partners Callable 12/15/06 @ 105 10.000%, 12/15/11 1,000 1,130 US Oncology Callable 02/01/07 @ 104.813 9.625%, 02/01/12 500 545 -------- 6,593 -------- - -------------------------------------------------------------------------------- FACE AMOUNT (000) VALUE (000) - -------------------------------------------------------------------------------- PRINTING & PUBLISHING (1.2%) Dex Media East LLC Callable 11/15/07 @ 106.063 12.125%, 11/15/12 $ 1,000 $ 1,202 Primedia (B) Callable 05/15/08 @ 104 8.000%, 05/15/13 1,000 1,008 Von Hoffman Press 10.250%, 03/15/09 500 526 -------- 2,736 -------- REAL ESTATE INVESTMENT TRUSTS (1.9%) Crescent Real Estate Callable 04/15/06 @ 104.625 9.250%, 04/15/09 750 818 iStar Financial 7.000%, 03/15/08 750 806 MeriStar Hospitality Operating Partnership LP Callable 12/15/05 @ 105.25 10.500%, 06/15/09 1,000 1,073 Senior Housing Properties Trust Callable 04/15/08 @ 103.938 7.875%, 04/15/15 500 525 Ventas Realty LP 9.000%, 05/01/12 1,000 1,120 -------- 4,342 -------- RETAIL (2.3%) Asbury Automotive Group Callable 06/15/07 @ 104.5 9.000%, 06/15/12 1,000 1,052 Great Atlantic & Pacific Tea Callable 12/15/06 @ 104.563 9.125%, 12/15/11 1,000 872 Hollywood Entertainment Callable 03/15/07 @ 104.813 9.625%, 03/15/11 1,000 1,072 Ingles Markets Callable 12/01/06 @ 104.438 8.875%, 12/01/11 500 484 Office Depot 10.000%, 07/15/08 500 598 Roundy's, Ser B (B) Callable 06/15/07 @ 104.438 8.875%, 06/15/12 1,000 1,058 -------- 5,136 -------- 35 STATEMENT OF NET ASSETS - -------------------------------------------------------------------------------- STI CLASSIC FIXED INCOME FUNDS NOVEMBER 30, 2003 STRATEGIC INCOME FUND--CONTINUED - -------------------------------------------------------------------------------- FACE AMOUNT (000) VALUE (000) - -------------------------------------------------------------------------------- SERVICE INDUSTRIES (3.1%) Allied Waste, Ser B (B) 9.250%, 09/01/12 $ 500 $ 557 Coinmach Callable 02/01/06 @ 104.5 9.000%, 02/01/10 500 542 Cooperative Computing (B) Callable 06/15/07 @ 105.25 10.500%, 06/15/11 500 542 IESI Callable 06/15/07 @ 105.125 10.250%, 06/15/12 500 542 IPC Acquisition Callable 12/15/05 @ 105.75 11.500%, 12/15/09 200 218 Iron Mountain Callable 01/15/08 @ 103.88 7.750%, 01/15/15 500 530 Iron Mountain Callable 07/01/08 @ 103.31 6.625%, 01/01/16 500 488 Service International 7.700%, 04/15/09 500 524 Shaw Group (B) Callable 03/15/07 @ 105.375 10.750%, 03/15/10 1,000 1,053 United Rentals (B) Callable 11/15/11 @ 100 7.750%, 11/15/13 1,000 998 United Rentals, Ser B (K) Callable 06/01/04 @ 104.75 9.500%, 06/01/08 1,000 1,050 -------- 7,044 -------- TELEPHONE & TELECOMMUNICATIONS (3.7%) Crown Castle International Callable 08/01/05 @ 105.375 10.750%, 08/01/11 1,000 1,120 Intermedia Communications, Ser B (A) (J) 11.250%, 07/15/07 750 652 Nextel Communications (K) Callable 08/01/08 @ 103.688 7.375%, 08/01/15 1,000 1,052 PanAmSat Callable 02/01/07 @ 104.25 8.500%, 02/01/12 1,000 1,088 Qwest Services (B) Callable 12/15/05 @ 106.5 13.000%, 12/15/07 1,000 1,160 Rogers Cantel Callable 06/01/04 @ 103.125 9.375%, 06/01/08 1,000 1,045 - -------------------------------------------------------------------------------- FACE AMOUNT (000) VALUE (000) - -------------------------------------------------------------------------------- Sprint Capital 8.750%, 03/15/32 $ 1,500 $ 1,698 TSI Telecommunications Services, Ser B Callable 02/01/06 @ 106.375 12.750%, 02/01/09 500 547 -------- 8,362 -------- TRANSPORTATION (1.6%) El Paso Energy Partners, Ser B Callable 12/01/06 @ 104.25 8.500%, 06/01/11 1,000 1,090 Laidlaw, Ser B 11.500%, 04/15/07 1,000 882 Seabulk International (B) 9.500%, 08/15/13 1,000 1,043 Transmontaigne (B) Callable 06/01/07 @ 104.563 9.125%, 06/01/10 500 536 -------- 3,551 -------- UTILITIES (0.8%) Calpine (K) 8.500%, 02/15/11 500 364 Mission Energy Holdings 13.500%, 07/15/08 1,000 915 PSEG Energy Holdings 7.750%, 04/16/07 500 515 -------- 1,794 -------- Total Corporate Obligations (Cost $88,330) 91,880 -------- U.S. GOVERNMENT MORTGAGE-BACKED OBLIGATIONS (27.4%) FNMA 5.936%, 11/01/11 979 1,061 5.500%, 12/01/32 to 07/01/33 19,700 19,836 4.500%, 06/01/18 to 10/01/18 6,925 6,882 3.239%, 06/01/33 3,118 3,172 FNMA REMIC, Ser 2002-22, Cl PE 6.500%, 11/25/30 1,000 1,029 FNMA, 15 year 5.000%, 06/01/18 2,190 2,220 FNMA, 30 year 5.000%, 06/01/33 to 08/01/33 21,549 21,164 GNMA 6.000%, 12/15/31 1,006 1,042 5.500%, 11/15/33 5,000 5,058 -------- Total U.S. Government Mortgage-Backed Obligations (Cost $62,157) 61,464 -------- 36 - -------------------------------------------------------------------------------- (UNAUDITED) - -------------------------------------------------------------------------------- FACE AMOUNT (000)(E) VALUE (000) - -------------------------------------------------------------------------------- FOREIGN GOVERNMENT DEBT SECURITIES (16.6%) AUSTRALIA (1.7%) Australian Government (AUD) 6.500%, 05/15/13 2,500 $ 1,877 5.750%, 06/15/11 2,600 1,857 -------- 3,734 -------- BELGIUM (0.5%) Kingdom of Belgium (EUR) 4.250%, 09/28/13 1,000 1,175 -------- BRAZIL (2.0%) Federal Republic of Brazil 11.000%, 01/11/12 $ 2,000 2,230 10.250%, 06/17/13 2,000 2,153 -------- 4,383 -------- CANADA (2.1%) Canadian Government (CAD) 5.250%, 06/01/12 4,000 3,179 4.500%, 09/01/07 2,000 1,572 -------- 4,751 -------- FRANCE (0.9%) France Telecom 9.750%, 03/01/31 $ 1,500 1,963 -------- GERMANY (1.1%) Deutschland Republic (EUR) 4.500%, 01/04/13 2,000 2,417 -------- IRELAND (1.0%) Depfa ACS Bank (EUR) 3.875%, 07/15/13 2,000 2,265 -------- ITALY (1.4%) Italy Buoni Poliennali del Tesoro (EUR) 4.250%, 08/01/13 2,700 3,170 -------- SPAIN (1.6%) Government of Spain (EUR) 6.000%, 01/31/08 1,000 1,308 4.200%, 07/30/13 2,000 2,352 -------- 3,660 -------- SWEDEN (1.6%) Kingdom of Sweden (SEK) 5.000%, 01/28/09 27,000 3,659 -------- - -------------------------------------------------------------------------------- SHARES/FACE AMOUNT (000)(E) VALUE (000) - -------------------------------------------------------------------------------- UNITED KINGDOM (2.7%) United Kingdom (GBP) 7.500%, 12/07/06 1,000 $ 1,850 5.000%, 03/07/08 1,000 1,727 5.000%, 03/07/12 1,500 2,571 -------- 6,148 -------- Total Foreign Government Debt Securities (Cost $35,647) 37,325 -------- U.S. TREASURY OBLIGATIONS (7.5%) U.S. Treasury Notes 5.375%, 02/15/31 $ 6,500 6,734 5.250%, 11/15/28 5,000 5,001 4.250%, 08/15/13 5,000 4,980 -------- Total U.S. Treasury Obligations (Cost $17,816) 16,715 -------- U.S. GOVERNMENT AGENCY OBLIGATIONS (5.1%) FHLB 3.625%, 11/14/08 5,000 4,986 FHLMC 5.250%, 01/15/06 1,500 1,592 4.500%, 07/15/13 5,000 4,898 -------- Total U.S. Government Agency Obligations (Cost $11,423) 11,476 -------- ASSET-BACKED OBLIGATIONS (0.8%) Long Beach Asset Holdings, Ser 2003-4, Cl N1 6.535%, 08/25/33 762 764 Saxon Net Interest Margin Trust, Ser 2003-A, Cl A (B) 6.656%, 08/26/33 933 932 -------- Total Asset-Backed Obligations (Cost $1,695) 1,696 -------- SHORT-TERM INVESTMENT (4.5%) Boston Global Investment Trust -- Enhanced Portfolio (L) 9,993,248 9,993 -------- Total Short-Term Investment (Cost $9,993) 9,993 -------- Total Investments (102.9%) (Cost $227,061) 230,549 -------- OTHER ASSETS AND LIABILITIES Payable Upon Return of Securities Loaned (9,993) Investment Advisory Fees Payable (137) Distribution Fees Payable (64) Administration Fees Payable (13) Other Assets and Liabilities, Net 3,768 -------- TOTAL OTHER ASSETS AND LIABILITIES (-2.9%) (6,439) -------- 37 STATEMENT OF NET ASSETS/SCHEDULE OF INVESTMENTS - -------------------------------------------------------------------------------- STI CLASSIC FIXED INCOME FUNDS NOVEMBER 30, 2003 STRATEGIC INCOME FUND--CONCLUDED - -------------------------------------------------------------------------------- VALUE (000) - -------------------------------------------------------------------------------- NET ASSETS: (unlimited authorization -- no par value) based on 6,439,930 outstanding shares of beneficial interest $ 63,104 Paid in Capital -- A Shares (unlimited authorization -- no par value) based on 244,508 outstanding shares of beneficial interest 2,445 Paid in Capital -- L Shares (unlimited authorization -- no par value) based on 15,817,157 outstanding shares of beneficial interest 155,272 Distributions in excess of net investment income (1,414) Accumulated net realized gain on investments 1,693 Net unrealized appreciation on investments 3,488 Net unrealized depreciation on forward foreign currency contracts, foreign currencies and translation of other assets and liabilities denominated in foreign currencies (478) -------- Total Net Assets (100.0%) $224,110 ======== Net Asset Value, Offering and Redemption Price Per Share -- T Shares ($64,114,409 / 6,439,930 shares) $9.96 ======== Net Asset Value and Redemption Price Per Share -- A Shares ($2,437,868 / 244,508 shares) $9.97 ======== Maximum Offering Price Per Share -- A Shares ($9.97 / 96.25%) $10.36 ======== Net Asset Value and Offering Price Per Share -- L Shares (1) ($157,558,096 / 15,817,157 shares) $9.96 ======== THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS. FOR DESCRIPTIONS OF ABBREVIATIONS AND FOOTNOTES, PLEASE SEE PAGE 48. 38 - -------------------------------------------------------------------------------- (UNAUDITED) U.S. GOVERNMENT SECURITIES FUND - -------------------------------------------------------------------------------- FACE AMOUNT (000) VALUE (000) - -------------------------------------------------------------------------------- U.S. GOVERNMENT MORTGAGE-BACKED OBLIGATIONS (61.4%) FHLMC 7.000%, 06/01/17 $ 607 $ 642 6.500%, 03/01/12 to 09/01/16 2,268 2,388 5.500%, 04/01/17 4,428 4,566 5.212%, 04/01/33 4,067 4,120 5.000%, 05/01/33 4,762 4,667 4.500%, 06/01/13 to 10/01/18 19,904 19,822 1.650%, 08/27/05 718 717 FHLMC REMIC, Ser 1623, Cl PG 3.000%, 07/15/21 1,658 1,663 FNMA 7.000%, 12/01/31 to 06/01/32 7,332 7,742 6.500%, 06/01/13 to 07/01/32 8,478 8,846 6.290%, 08/01/18 1,292 1,345 6.000%, 11/01/07 to 11/01/33 54,238 55,866 5.936%, 11/01/11 3,917 4,243 5.500%, 09/01/17 to 04/01/18 6,520 6,721 4.254%, 08/01/33 17,316 17,541 4.133%, 05/01/33 9,007 9,087 4.000%, 11/01/13 9,921 9,909 FNMA REMIC, Ser 143, Cl J 8.750%, 12/25/20 11 12 FNMA REMIC, Ser 2002-22, Cl PE 6.500%, 11/25/30 6,000 6,171 FNMA, Ser 2002-M2, Cl C 4.717%, 08/25/12 5,000 5,008 GNMA 7.500%, 10/20/09 6 6 6.500%, 10/15/23 to 11/15/31 3,122 3,284 6.250%, 10/15/28 473 495 6.000%, 07/15/13 to 03/15/33 8,202 8,509 5.500%, 12/15/32 to 12/01/33 4,111 4,159 GNMA, Ser 2002-9, Cl B 5.881%, 03/16/24 3,000 3,243 -------- Total U.S. Government Mortgage-Backed Obligations (Cost $189,344) 190,772 -------- U.S. GOVERNMENT AGENCY OBLIGATIONS (15.8%) FHLB 4.875%, 11/15/06 5,000 5,282 FHLMC 4.500%, 01/15/13 (K) 6,600 6,511 4.250%, 05/22/13 2,000 1,864 3.000%, 10/27/06 4,000 4,029 FNMA 6.625%, 11/15/10 10,000 11,405 4.625%, 10/15/13 (K) 5,000 4,943 3.875%, 11/17/08 10,000 9,959 - -------------------------------------------------------------------------------- FACE AMOUNT (000) VALUE (000) - -------------------------------------------------------------------------------- FNMA, MTN 1.060%, 07/20/04 $ 5,000 $ 4,994 -------- Total U.S. Government Agency Obligations (Cost $48,633) 48,987 -------- U.S. TREASURY OBLIGATIONS (13.2%) U.S. Treasury Bonds 5.375%, 02/15/31 10,900 11,293 5.250%, 02/15/29 2,000 2,003 U.S. Treasury Notes 4.250%, 08/15/13 (K) 5,000 4,980 4.000%, 11/15/12 (K) 3,000 2,953 3.375%, 01/15/07 5,836 6,306 3.000%, 07/15/12 3,074 3,336 2.375%, 08/15/06 (K) 10,000 9,993 -------- Total U.S. Treasury Obligations (Cost $40,931) 40,864 -------- CORPORATE OBLIGATIONS (1.8%) AUTOMOTIVE (0.7%) DaimlerChrysler Holdings 7.400%, 01/20/05 2,000 2,110 -------- BROADCASTING (0.6%) Liberty Media 3.500%, 09/25/06 2,000 1,990 -------- FINANCE (0.5%) SLM, MTN 3.625%, 03/17/08 1,500 1,497 -------- Total Corporate Obligations (Cost $5,603) 5,597 -------- MORTGAGE RELATED (1.6%) JP Morgan Mortgage Trust, Ser 2003-A2, Cl 2A2 4.723%, 11/25/33 5,000 5,044 -------- Total Mortgage Related (Cost $4,988) 5,044 -------- ASSET-BACKED SECURITIES (1.3%) Honda Auto Receivable Owner Trust, Ser 2003-3 Cl A3 2.140%, 04/23/07 2,000 1,997 Whole Auto Loan Trust, Ser 2003-1, Cl A3A 1.840%, 10/15/06 2,000 1,994 -------- Total Asset-Backed Securities (Cost $4,000) 3,991 -------- 39 SCHEDULE OF INVESTMENTS - -------------------------------------------------------------------------------- STI CLASSIC FIXED INCOME FUNDS NOVEMBER 30, 2003 U.S. GOVERNMENT SECURITIES FUND - -------------------------------------------------------------------------------- SHARES/FACE AMOUNT (000) VALUE (000) - -------------------------------------------------------------------------------- EXCHANGE TRADED FUND (1.6%) iShares GS InvesTop Corporate Bond Fund 46,000 $ 5,063 -------- Total Exchange Traded Fund (Cost $5,016) 5,063 -------- SHORT-TERM INVESTMENT (8.9%) Boston Global Investment Trust -- Enhanced Portfolio (L) 27,771,250 27,771 -------- Total Short-Term Investment (Cost $27,771) 27,771 -------- CASH EQUIVALENTS (0.0%) Federated Prime Money Market Obligations Fund 5,567 6 SEI Daily Income Trust Government II Fund 4,665 5 -------- Total Cash Equivalents (Cost $11) 11 -------- REPURCHASE AGREEMENT (3.2%) Morgan Stanley, 0.995%, dated 11/28/03, to be repurchased on 12/01/03, repurchase price $10,037,933 (collateralized by U.S. Government Obligations; total market value $10,237,847) (G) $10,037 10,037 -------- Total Repurchase Agreement (Cost $10,037) 10,037 -------- Total Investments (108.8%) (Cost $336,334) $338,137 ======== PERCENTAGES ARE BASED UPON NET ASSETS OF $310,905,922. THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS. FOR DESCRIPTIONS OF ABBREVIATIONS AND FOOTNOTES, PLEASE SEE PAGE 48. 40 STATEMENT OF NET ASSETS - -------------------------------------------------------------------------------- (UNAUDITED) VIRGINIA INTERMEDIATE MUNICIPAL BOND FUND - -------------------------------------------------------------------------------- FACE AMOUNT (000) VALUE (000) - -------------------------------------------------------------------------------- MUNICIPAL BONDS (98.9%) VIRGINIA (98.9%) Albemarle County, Industrial Development Authority, Residential Care Facilities, Ser A, RB Callable 01/01/05 @ 101 5.000%, 01/01/07 $1,500 $ 1,527 Arlington County, Industrial Development Authority, Alexandria/Arlington Project, Ser A, RB, FSA 5.250%, 01/01/05 4,000 4,175 Arlington County, Industrial Development Authority, Alexandria/Arlington Waste Project, Ser B, RB, AMT, FSA Callable 07/01/08 @ 101 5.375%, 01/01/11 2,785 3,063 Arlington County, Industrial Development Authority, Arlington Health Systems, RB 5.500%, 07/01/06 2,000 2,175 5.500%, 07/01/11 2,000 2,226 Arlington County, Industrial Development Authority, Arlington Health Systems, RB Callable 07/01/11 @ 101 5.500%, 07/01/17 2,225 2,384 Bristol, GO, FSA, ETM Callable 11/01/12 @ 102 5.500%, 11/01/16 1,190 1,368 Bristol, Public Improvement Project, GO, FSA Callable 11/01/12 @ 102 5.250%, 11/01/14 1,250 1,415 Bristol, Utility Systems, RB, FSA, ETM Callable 07/15/11 @ 102 5.750%, 07/15/14 1,055 1,243 Chesapeake Bay, Bridge & Tunnel Commission, General Resolution, RB, FGIC 5.000%, 07/01/09 1,000 1,122 Chesapeake, GO 5.400%, 12/01/08 2,500 2,852 5.000%, 06/01/09 1,000 1,122 Chesapeake, Public Improvement Project, GO 5.500%, 12/01/10 2,500 2,900 City of Richmond, Public Improvement Project, GO, FGIC 5.500%, 07/15/10 1,000 1,156 - -------------------------------------------------------------------------------- FACE AMOUNT (000) VALUE (000) - -------------------------------------------------------------------------------- Danville, GO, FSA 5.000%, 08/01/12 $1,000 $ 1,119 Fairfax County, Industrial Development Authority, Fairfax Hospital Project, Ser B, RB (C) 1.030%, 10/01/25 2,300 2,300 Fairfax County, Industrial Development Authority, Inova Health System Project, RB Callable 08/15/06 @ 102 5.300%, 08/15/07 1,500 1,647 Fairfax County, Industrial Development Authority, Inova Health System Project, Ser A, RB Callable 02/15/08 @ 101 5.000%, 08/15/10 2,890 3,103 Fairfax County, Water Authority, RB Callable 04/01/07 @ 102 6.000%, 04/01/22 5,560 6,255 Fairfax County, Water Authority, RB Callable 04/01/12 @ 100 5.500%, 04/01/14 2,000 2,259 Fairfax County, Water Authority, RB Prerefunded @ 101 (F) 6.000%, 04/01/10 1,125 1,336 Greater Richmond, Convention Center Authority, Convention Center Expansion Project, RB 5.250%, 06/15/05 460 486 Greater Richmond, Convention Center Authority, Convention Center Expansion Project, RB Callable 06/15/10 @ 101 6.000%, 06/15/11 1,170 1,343 6.000%, 06/15/13 3,185 3,593 Hampton, Museum Project, RB Callable 01/01/04 @ 102 5.250%, 01/01/09 1,760 1,799 Hampton, Public Improvement Project, GO Callable 01/15/08 @ 102 5.000%, 01/15/10 1,200 1,321 Hampton, Public Improvement Project, Ser A, GO Callable 07/15/12 @ 101 5.500%, 07/15/18 1,275 1,425 41 STATEMENT OF NET ASSETS - -------------------------------------------------------------------------------- STI CLASSIC FIXED INCOME FUNDS NOVEMBER 30, 2003 VIRGINIA INTERMEDIATE MUNICIPAL BOND FUND--CONTINUED - -------------------------------------------------------------------------------- FACE AMOUNT (000) VALUE (000) - -------------------------------------------------------------------------------- Hanover County, Industrial Development Authority, Memorial Regional Medical Center Project, RB, MBIA 6.375%, 08/15/18 $6,000 $ 7,388 Harrisonburg, Industrial Development Authority, Rockingham Memorial Hospital Project, RB, MBIA Callable 01/05/04 @ 101 5.750%, 12/01/13 3,000 3,041 Henrico County, Economic Development Authority, Residential Care Facility, Westminister Centerbury Project, Ser B, RB (LOC: KBC Bank N.V.) (C) Callable 12/04/03 @ 100 1.110%, 07/01/08 2,750 2,750 Henrico County, Economic Development Authority, United Methodist Homes Project, Ser A, RB 5.000%, 06/01/10 1,000 1,000 4.250%, 06/01/07 475 471 3.750%, 06/01/06 255 254 Henrico County, Economic Development Authority, United Methodist Homes Project, Ser A, RB Callable 06/01/12 @ 100 6.500%, 06/01/22 1,000 986 Henrico County, Industrial Development Authority, Governmental Projects, RB Callable 06/01/06 @ 102 5.150%, 06/01/07 2,500 2,741 Henrico County, Industrial Development Authority, Solid Waste Facility, Browning Ferris Project, RB, AMT 5.300%, 12/01/11 1,000 973 Henrico County, Refunding & Public Improvement Projects, GO 5.000%, 01/15/08 2,220 2,467 Henry County, Industrial Development Authority, Memorial Hospital Martinsville & Henry, RB Prerefunded @ 101 6.000%, 01/01/07 2,250 2,548 - -------------------------------------------------------------------------------- FACE AMOUNT (000) VALUE (000) - -------------------------------------------------------------------------------- Henry County, Public Service Authority, RB, FSA 5.000%, 11/15/08 $1,990 $ 2,229 Isle of Wight County, GO, MBIA 5.000%, 02/01/12 1,000 1,118 James City County, Industrial Development Authority, Residential Care Facility, Ser B, RB Callable 09/01/04 @ 101 5.375%, 03/01/26 1,900 1,922 Lynchburg, Industrial Development Authority, Centra Health, Health Care Facility, RB 5.000%, 01/01/08 1,180 1,285 Lynchburg, Industrial Development Authority, Recreational Facilities Revenue, RB (LOC: Wachovia Bank, N.A.) (C) Callable 12/04/03 @ 100 1.110%, 05/01/23 1,000 1,000 Lynchburg, Industrial Development Authority, Residential Care Facility, The Summit Project, Ser A, RB Callable 01/01/05 @ 101 4.750%, 01/01/06 1,850 1,865 Lynchburg, Ser B, GO 5.000%, 02/01/10 1,940 2,171 Metropolitan Washington, Airports Authority, Ser B, RB, MBIA, AMT Callable 10/01/08 @ 101 4.750%, 10/01/11 1,625 1,709 Montgomery County, Industrial Development Authority, RB, AMBAC Callable 01/15/12 @ 101 5.500%, 01/15/18 1,865 2,067 Newport News, GO 5.250%, 03/01/08 1,500 1,683 Newport News, GO Callable 03/01/08 @ 102 5.000%, 03/01/10 3,210 3,566 Newport News, General Improvement & Water Projects, Ser B, GO 5.250%, 07/01/15 3,000 3,402 Newport News, Industrial Development Authority, Advanced Shipbuilding Carrier Project, RB 5.500%, 09/01/09 2,500 2,881 42 - -------------------------------------------------------------------------------- (UNAUDITED) - -------------------------------------------------------------------------------- FACE AMOUNT (000) VALUE (000) - -------------------------------------------------------------------------------- Norfolk, GO Callable 06/01/04 @ 101 5.250%, 06/01/08 $5,000 $ 5,153 Norfolk, Industrial Development Authority, Children's Hospital Project, RB, AMBAC 6.900%, 06/01/06 1,000 1,124 Norfolk, Redeveloping & Housing Authority, Educational Facility -- Tidewater Community College, RB 5.000%, 11/01/13 1,135 1,260 Norfolk, Refunding & Capital Improvement Projects, GO, MBIA Callable 01/01/12 @ 100 5.000%, 01/01/13 1,160 1,280 Richmond, GO, FSA 5.500%, 01/15/11 1,000 1,150 5.250%, 01/15/09 1,470 1,659 Richmond, GO, FSA Callable 01/15/11 @ 101 5.500%, 01/15/12 2,000 2,282 5.500%, 01/15/18 2,755 3,042 Roanoke, Industrial Development Authority, Carilion Health System Project, Ser A, RB, MBIA 5.250%, 07/01/11 1,500 1,689 Roanoke, Industrial Development Authority, Carilion Health System Project, Ser A, RB, MBIA Callable 07/01/12 @ 100 5.750%, 07/01/13 2,000 2,291 5.750%, 07/01/14 2,000 2,271 5.500%, 07/01/18 2,000 2,190 Roanoke, Industrial Development Authority, Carilion Health System Project, Ser C, RB (C) Callable 01/02/04 @ 100 1.020%, 07/01/27 2,300 2,300 Roanoke, Ser B, GO, AMT, FGIC 5.000%, 10/01/11 1,000 1,101 Southwest Virginia, Regional Jail Authority, RB, MBIA Callable 09/01/13 @ 100 5.125%, 09/01/14 1,145 1,264 5.125%, 09/01/15 1,465 1,606 Stafford County, Water & Sewer, RB, FSA 5.000%, 06/01/12 2,275 2,533 - -------------------------------------------------------------------------------- FACE AMOUNT (000) VALUE (000) - -------------------------------------------------------------------------------- Virginia Beach, Development Authority, Public Facility Town Center Project Phase I, Ser A, RB Callable 08/01/12 @ 100 5.375%, 08/01/16 $1,650 $ 1,829 Virginia Beach, GO 5.450%, 07/15/11 1,000 1,153 5.250%, 03/01/07 2,500 2,761 5.250%, 03/01/08 1,695 1,899 Virginia Commonwealth, Transportation Board, Federal Highway Reimbursement Project, RB 5.500%, 10/01/04 2,500 2,592 5.500%, 10/01/05 2,500 2,689 5.500%, 10/01/06 1,000 1,106 Virginia Commonwealth, Transportation Board, Northern Transportation District Project, Ser A, RB Callable 05/01/11 @ 100 5.375%, 05/15/13 2,045 2,287 Virginia State, College Building Authority, Public Higher Education Financing Program, Ser A, RB 5.000%, 09/01/11 1,510 1,699 Virginia State, College Building Authority, Public Higher Education, Ser A, RB 5.500%, 09/01/09 1,415 1,632 Virginia State, College Building Authority, Washington & Lee University, RB 5.375%, 01/01/21 2,945 3,318 Virginia State, Education Loan Authority, Guaranteed Student Loan Program, Ser B, RB, ETM, AMT 5.550%, 09/01/10 1,800 1,948 Virginia State, Housing Development Authority, Commonwealth Mortgage Project, Ser I, Sub Ser I-1, RB, AMT 3.750%, 07/01/05 1,000 1,027 Virginia State, Housing Development Authority, Multi- Family Housing, Ser E, RB Callable 01/01/08 @ 102 5.350%, 11/01/11 1,250 1,339 43 STATEMENT OF NET ASSETS - -------------------------------------------------------------------------------- STI CLASSIC FIXED INCOME FUNDS NOVEMBER 30, 2003 VIRGINIA INTERMEDIATE MUNICIPAL BOND FUND--CONTINUED - -------------------------------------------------------------------------------- FACE AMOUNT (000) VALUE (000) - -------------------------------------------------------------------------------- Virginia State, Housing Development Authority, Multi- Family Housing, Ser I, RB, AMT Callable 01/01/09 @ 101 4.875%, 11/01/12 $1,950 $ 2,035 Virginia State, Housing Development Authority, Rental Housing, Ser H, RB, AMT Callable 11/01/09 @ 100 5.625%, 11/01/18 3,500 3,671 Virginia State, Housing Development Authority, Ser C, Sub-Ser C-1, RB Callable 01/01/08 @ 102 5.100%, 07/01/14 1,500 1,575 Virginia State, Housing Development Authority, Sub-Ser J-1, RB, MBIA Callable 07/01/11 @ 100 4.875%, 07/01/13 2,500 2,604 Virginia State, Peninsula Ports Authority, Ser A, RB Callable 12/01/13 @ 100 7.375%, 12/01/23 1,500 1,551 Virginia State, Polytechnic Institute & State University, Ser A, RB Callable 06/01/06 @ 102 5.350%, 06/01/09 2,000 2,209 Virginia State, Public Building Authority, Ser A, RB Callable 08/01/07 @ 101 6.000%, 08/01/08 1,000 1,136 Virginia State, Public School Authority, School Financing Project, Ser A, RB 5.250%, 08/01/07 2,000 2,229 Virginia State, Public School Authority, Ser B, GO Callable 08/01/10 @ 101 5.000%, 08/01/13 2,910 3,170 Virginia State, Resources Authority, Pooled Financing Program, RB (H) Callable 11/01/13 @ 100 5.000%, 11/01/22 1,670 1,742 Virginia State, Resources Authority, RB 5.000%, 04/01/11 1,265 1,419 5.000%, 04/01/12 1,225 1,368 - -------------------------------------------------------------------------------- SHARES/FACE AMOUNT (000) VALUE (000) - -------------------------------------------------------------------------------- Virginia State, Resources Authority, Ser D, RB Callable 05/01/10 @ 101 5.000%, 05/01/13 $1,485 $ 1,615 York County, GO 5.000%, 07/15/09 1,545 1,735 -------- 197,764 -------- Total Municipal Bonds (Cost $189,655) 197,764 -------- CASH EQUIVALENT (0.9%) Federated Tax-Free Obligation Fund 1,883,004 1,883 -------- Total Cash Equivalent (Cost $1,883) 1,883 -------- Total Investments (99.8%) (Cost $191,538) 199,647 -------- OTHER ASSETS AND LIABILITIES (0.2%) Investment Advisory Fees Payable (108) Administration Fees Payable (12) Custody Fees Payable (1) Distribution Fees Receivable 1 Other Assets and Liabilities, Net 531 -------- Total Other Assets and Liabilities 411 -------- NET ASSETS: Paid in Capital -- T Shares (unlimited authorization -- no par value) based on 18,211,483 outstanding shares of beneficial interest 180,867 Paid in Capital -- A Shares (unlimited authorization -- no par value) based on 885,050 outstanding shares of beneficial interest 9,184 Undistributed net investment income 14 Accumulated net realized gain on investments 1,884 Net unrealized appreciation on investments 8,109 -------- Total Net Assets (100.0%) $200,058 ======== Net Asset Value, Offering and Redemption Price Per Share -- T Shares ($190,784,262 / 18,211,483 shares) $10.48 ======== Net Asset Value and Redemption Price Per Share -- A Shares ($9,273,544 / 885,050 shares) $10.48 ======== Maximum Offering Price Per Share -- A Shares ($10.48 / 96.25%) $10.89 ======== THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS. FOR DESCRIPTIONS OF ABBREVIATIONS AND FOOTNOTES, PLEASE SEE PAGE 48. 44 - ------------------------------------------------------------------------------- (UNAUDITED) VIRGINIA MUNICIPAL BOND FUND - ------------------------------------------------------------------------------- FACE AMOUNT (000) VALUE (000) - ------------------------------------------------------------------------------- MUNICIPAL BONDS (99.1%) VIRGINIA (99.1%) Alexandria, Redevelopment & Housing Authority, Goodwin House Project, Ser B, RB (LOC: Wachovia Bank, N.A.) (C) 1.020%, 10/01/06 $ 500 $ 500 Amherst County, Service Authority, RB Callable 12/15/10 @ 102 6.000%, 12/15/20 500 526 6.000%, 12/15/30 1,750 1,823 Bristol, Utility System Authority, RB, MBIA Callable 07/15/13 @ 100 5.250%, 07/15/23 1,000 1,062 Brunswick County, Industrial Development Authority, RB, MBIA Callable 07/01/06 @ 102 5.700%, 07/01/10 1,000 1,115 Chesterfield County, GO Callable 01/15/10 @ 100 5.750%, 01/15/15 1,315 1,496 Chesterfield County, GO Callable 01/15/11 @ 100 5.000%, 01/15/12 1,105 1,221 Fairfax County, Sewer Revenue, RB, MBIA Callable 07/15/06 @ 102 5.800%, 07/15/22 1,000 1,109 Fredericksburg, Industrial Development Authority, Medicorp Health System Project, RB 5.000%, 08/15/09 1,000 1,094 Greater Richmond, Convention Center Authority, Convention Center Expansion Project, RB 5.500%, 06/15/08 550 616 Greater Richmond, Convention Center Authority, Convention Center Expansion Project, RB Callable 06/15/10 @ 101 6.125%, 06/15/25 1,200 1,337 5.900%, 06/15/16 850 945 Hampton, Golf Course Project, RB 6.000%, 12/01/12 1,171 1,257 Hampton, Museum Project, RB Callable 01/01/04 @ 102 5.250%, 01/01/09 440 450 - ------------------------------------------------------------------------------- FACE AMOUNT (000) VALUE (000) - ------------------------------------------------------------------------------- Hanover County, Industrial Development Authority, Bon Secours Health System Project, RB, MBIA 6.000%, 08/15/09 $1,000 $ 1,167 Hanover County, Industrial Development Authority, Memorial Regional Medical Center Project, RB, MBIA 6.375%, 08/15/18 1,000 1,231 Henrico County, Economic Development Authority, Beth Sholom Assisted Living, Ser A, RB, GNMA Callable 07/20/09 @ 102 5.900%, 07/20/29 500 548 5.850%, 07/20/19 400 436 Henrico County, Economic Development Authority, Residential Care Facility, Westminister Centerbury Project, Ser B, RB (LOC: KBC Bank N.V.) (C) Callable 12/04/03 @ 100 1.110%, 07/01/08 1,000 1,000 Henry County, Public Service Authority, RB, FSA 5.250%, 11/15/13 1,500 1,697 Loudoun County, Refunding & Public Improvement Projects, Ser A, GO Callable 05/01/12 @ 100 5.250%, 05/01/18 1,535 1,673 Lynchburg, Industrial Development Authority, Centra Health Project, RB Callable 01/01/08 @ 101 5.250%, 01/01/11 1,430 1,538 Metropolitan Washington, Airports Authority, Ser A, RB, MBIA, AMT Callable 10/01/11 @ 101 5.500%, 10/01/27 1,000 1,049 Newport News, GO Callable 03/01/08 @ 102 5.000%, 03/01/10 1,000 1,111 Newport News, Redevelopment & Housing Authority, Ser A, RB, GNMA Callable 08/20/07 @ 102 5.850%, 12/20/30 500 524 45 STATEMENT OF NET ASSETS - ------------------------------------------------------------------------------- STI CLASSIC FIXED INCOME FUNDS NOVEMBER 30, 2003 VIRGINIA MUNICIPAL BOND FUND--CONCLUDED - ------------------------------------------------------------------------------- FACE AMOUNT (000) VALUE (000) - ------------------------------------------------------------------------------- Pittsylvania County, Ser B, GO, MBIA Callable 03/01/11 @ 102 5.625%, 03/01/15 $1,000 $ 1,138 Richmond, GO, FSA 5.500%, 01/15/11 1,000 1,150 Richmond, GO, FSA Callable 01/15/11 @ 101 5.500%, 01/15/15 1,290 1,443 5.500%, 01/15/18 1,000 1,104 Richmond, Industrial Development Authority, University Real Estate Foundation Project, RB Callable 01/01/11 @ 102 5.450%, 01/01/21 1,000 1,043 Richmond, Public Utility, Ser A, RB, FGIC Callable 01/15/08 @ 101 5.250%, 01/15/12 1,000 1,110 Riverside, Regional Jail Authority, RB, MBIA (F) Prerefunded @ 102 5.875%, 07/01/14 910 993 Roanoke, Industrial Development Authority, Carilion Health System Project, Ser A, RB, MBIA Callable 07/01/12 @ 100 5.500%, 07/01/21 1,000 1,082 Roanoke, Industrial Development Authority, Carilion Health System Project, Ser C, RB (C) Callable 01/02/04 @ 100 1.020%, 07/01/27 1,000 1,000 Roanoke, Industrial Development Authority, Carillion Health System Project, Ser A, RB, MBIA Callable 07/01/12 @ 100 5.500%, 07/01/16 1,000 1,107 Upper Occoquan, Sewage Authority, Ser B, RB, MBIA 6.000%, 07/01/06 700 776 Virginia Commonwealth, Transportation Board, Federal Highway Reimbursement Project, RB 5.500%, 10/01/05 1,000 1,076 4.700%, 10/01/07 1,000 1,098 Virginia Commonwealth, Transportation Board, Highway Improvements Project, Ser B, RB 5.000%, 05/15/08 1,230 1,370 - ------------------------------------------------------------------------------- FACE AMOUNT (000) VALUE (000) - ------------------------------------------------------------------------------- Virginia Commonwealth, Transportation Board, Ser A, RB Callable 05/01/11 @ 100 5.375%, 05/15/12 $1,500 $ 1,695 Virginia State, Capital Region Airport Commission, Ser A, RB, FSA (H) 5.000%, 07/01/10 1,000 1,088 Virginia State, College Building Authority, 21st Century College & Equipment Programs, Ser A, RB Callable 02/01/12 @ 100 5.500%, 02/01/13 1,000 1,138 Virginia State, College Building Authority, Public Higher Education, Ser A, RB 5.500%, 09/01/07 1,285 1,446 5.500%, 09/01/09 1,000 1,153 Virginia State, Housing Development Authority, Sub-Ser I-1, RB, AMT 3.750%, 01/01/05 1,000 1,020 Virginia State, Peninsula Ports Authority, Ser A, RB Callable 12/01/13 @ 100 7.375%, 12/01/23 500 517 Virginia State, Public Building Authority, Ser A, RB Callable 08/01/10 @ 100 5.750%, 08/01/16 1,950 2,213 Virginia State, Public School Authority, School Equipment Financing, RB 5.250%, 04/01/05 1,000 1,053 Virginia State, Public School Authority, School Equipment Financing, Ser A, RB 5.500%, 08/01/08 1,000 1,139 Virginia State, Resources Authority, Pooled Financing Program, RB (H) Callable 11/01/13 @ 100 5.000%, 11/01/22 1,250 1,304 Virginia State, Resources Authority, RB, MBIA Callable 05/01/11 @ 101 5.800%, 05/01/30 1,500 1,683 Virginia State, Resources Authority, Water and Sewer Systems, Tuckahoe Creek Service District Project, RB 4.625%, 11/01/10 510 563 46 - ------------------------------------------------------------------------------- (UNAUDITED) - ------------------------------------------------------------------------------- SHARES/FACE AMOUNT (000) VALUE (000) - ------------------------------------------------------------------------------- Virginia State, Virginia Beach Development Authority, General Hospital Project, RB, AMBAC 6.000%, 02/15/09 $ 500 $ 578 Williamsburg, Industrial Development Authority, Williamsburg Community Hospital, RB Callable 10/01/04 @ 101 5.750%, 10/01/22 750 761 ------- 59,366 ------- Total Municipal Bonds (Cost $56,213) 59,366 ------- CASH EQUIVALENT (1.8%) Federated Tax-Free Obligation Fund 1,107,968 1,108 ------- Total Cash Equivalent (Cost $1,108) 1,108 ------- Total Investments (100.9%) (Cost $57,321) 60,474 ------- OTHER ASSETS AND LIABILITIES (-0.9%) Investment Advisory Fees Payable (32) Distribution Fees Payable (9) Administration Fees Payable (3) Custody Fees Payable (1) Other Assets and Liabilities, Net (472) ------- Total Other Assets and Liabilities (517) ------- - ------------------------------------------------------------------------------- VALUE (000) - ------------------------------------------------------------------------------- NET ASSETS: Paid in Capital -- T Shares (unlimited authorization -- no par value) based on 4,287,036 outstanding shares of beneficial interest $42,567 Paid in Capital -- L Shares (unlimited authorization -- no par value) based on 1,231,415 outstanding shares of beneficial interest 12,999 Undistributed net investment income 4 Accumulated net realized gain on investments 1,233 Net unrealized appreciation on investments 3,153 ------- Total Net Assets (100.0%) $59,956 ======= Net Asset Value, Offering and Redemption Price Per Share -- T Shares ($46,527,758 / 4,287,036 shares) $10.85 ======= Net Asset Value and Offering Price Per Share -- L Shares (1) ($13,428,594 / 1,231,415 shares) $10.91 ======= THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS. FOR DESCRIPTIONS OF ABBREVIATIONS AND FOOTNOTES, PLEASE SEE PAGE 48. 47 - -------------------------------------------------------------------------------- STI CLASSIC FIXED INCOME FUNDS NOVEMBER 30, 2003 KEY TO ABBREVIATIONS AND FOOTNOTES USED IN THE STATEMENTS OF NET ASSETS AND SCHEDULE OF INVESTMENTS ACA American Capital Access AMBAC Security insured by the American Municipal Bond Assurance Corporation AMT Alternative Minimum Tax ARM Adjustable Rate Mortgage Cl Class COP Certificate of Participation ETM Escrowed to Maturity FGIC Security insured by the Financial Guaranty Insurance Company FHA Federal Housing Authority FHLB Federal Home Loan Bank FHLMC Federal Home Loan Mortgage Corporation FNMA Federal National Mortgage Association FSA Security insured by Financial Security Assurance GNMA Government National Mortgage Association GO General Obligation LLC Limited Liability Company LOC Letter of Credit LP Limited Partnership MBIA Security insured by the Municipal Bond Insurance Association MTN Medium Term Note PLC Public Limited Company RB Revenue Bond REMIC Real Estate Mortgage Investment Conduit Ser Series TBA To Be Announced (A) Step Bond -- The rate shown is the effective yield at time of purchase. (B) 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". (C) Variable rate security -- The rate shown is the rate in effect on November 30, 2003. (D) Zero Coupon Security -- The rate shown is the effective yield at the time of purchase. (E) Face amounts of foreign debt securities are shown in local currency unless otherwise indicated. (F) Prerefunded Security -- The maturity date shown is the prerefunded date. (G) Tri-Party Repurchase Agreement (H) Security purchased on a when-issued basis. (I) Security in default on interest and principal payments. Collectability of interest and principal may be in doubt due to the fact that the company is either in or contemplating bankruptcy. (J) Security in default on interest payments. Collectability of interest may be in doubt due to the fact that the company is either in or contemplating bankruptcy. (K) 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 as of November 30, 2003 was $27,056,798, $185,192,045, $34,682,524, $37,168,000, $9,479,644 and $26,795,433 for the High Income, Investment Grade Bond, Limited-Term Federal Mortgage Securities, Short-Term Bond, Strategic Income and U.S. Government Securities Funds, respectively. (L) This security was purchased with cash collateral held from securities lending (see Note 8 in the Notes to Financial Statements). (M) Canada-domiciled security traded on the NASDAQ Stock Market. (1) L Shares have a contingent deferred sales charge. For a description of a possible sales charge, see Note 2 in the Notes to Financial Statements. CURRENCY LEGEND (AUD) Australian Dollar (CAD) Canadian Dollar (EUR) Euro Dollar (GBP) British Pound (SEK) Swedish Krona 48
STATEMENT OF ASSETS & LIABILITIES (000) - --------------------------------------------------------------------------------------------------------------------------- STI CLASSIC FIXED INCOME FUNDS NOVEMBER 30, 2003 (UNAUDITED) U.S. GOVERNMENT SECURITIES FUND --------------- Assets: Investments at Market Value (Cost $336,334) ............................................................... $338,137 Receivable for Investment Securities Sold ................................................................. 21,607 Receivable for Capital Shares Sold ........................................................................ 157 Accrued Income ............................................................................................ 1,669 Prepaid Expenses .......................................................................................... 8 -------- Total Assets .............................................................................................. 361,578 -------- Liabilities: Payable Upon Return of Securities Loaned .................................................................. 27,771 Payable for Investment Securities Purchased ............................................................... 21,375 Payable for Capital Shares Redeemed ....................................................................... 775 Income Distribution Payable ............................................................................... 513 Investment Advisory Fees Payable .......................................................................... 181 Distribution Fees Payable ................................................................................. 18 Administration Fees Payable ............................................................................... 18 Custody Fees Payable ...................................................................................... 3 Accrued Expenses .......................................................................................... 18 -------- Total Liabilities ......................................................................................... 50,672 -------- Total Net Assets .......................................................................................... $310,906 ======== Net Assets: Paid in Capital -- T Shares (unlimited authorization -- no par value) based on 26,195,591 outstanding shares of beneficial interest ........................................... 275,720 Paid in Capital -- A Shares (unlimited authorization -- no par value) based on 673,605 outstanding shares of beneficial interest .............................................. 7,087 Paid in Capital -- L Shares (unlimited authorization -- no par value) based on 2,653,122 outstanding shares of beneficial interest ............................................ 28,352 Distributions in Excess of Net Investment Income .......................................................... (725) Accumulated Net Realized Loss on Investments .............................................................. (1,331) Net Unrealized Appreciation on Investments ................................................................ 1,803 -------- Total Net Assets .......................................................................................... $310,906 ======== Net Asset Value, Offering and Redemption Price Per Share -- T Shares ($275,873,305 / 26,195,591 shares) ........................................................................... $10.53 ======== Net Asset Value and Redemption Price Per Share -- A Shares ($7,093,910 / 673,605 shares) ................................................................................ $10.53 ======== Maximum Offering Price Per Share -- A Shares ($10.53 / 96.25%) ................................................ $10.94 ======== Net Asset Value and Offering Price Per Share -- L Shares (1) ($27,938,707 / 2,653,122 shares) ............................................................................. $10.53 ========
(1) The L Shares have a contingent sales charge. For a description of a possible sales charge, see Note 2 in the Notes to Financial Statements. THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS. 49
STATEMENTS OF OPERATIONS (000) (UNAUDITED) - ------------------------------------------------------------------------------------------------------------------------------------ STI CLASSIC FIXED INCOME FUNDS FOR THE SIX MONTH PERIOD ENDED NOVEMBER 30, 2003 INVESTMENT FLORIDA GEORGIA HIGH INVESTMENT GRADE TAX-EXEMPT TAX-EXEMPT INCOME GRADE BOND TAX-EXEMPT BOND FUND BOND FUND FUND FUND BOND FUND ---------- ---------- ---------- ---------- ----------- Income: Interest Income ..................................... $ 3,608 $ 2,382 $ 7,657 $ 15,763 $ 3,804 Net Income from Securities Lending .................. -- -- 14 123 -- Less: Foreign Taxes Withheld ........................ -- -- -- -- -- ------- ------- ------- -------- ------- Total Income ........................................ 3,608 2,382 7,671 15,886 3,804 ------- ------- ------- -------- ------- Expenses: Investment Advisory Fees ............................ 639 386 679 3,006 892 Administration Fees ................................. 68 41 59 280 83 Distribution Fees -- A Shares ........................ 6 3 -- 72 46 Distribution Fees -- L Shares ........................ 177 83 384 174 157 Custody Fees ........................................ 4 2 4 21 5 Transfer Agency Shareholder Servicing Fees .......... 3 1 2 10 3 Transfer Agency Fees -- T Shares ..................... 8 8 8 8 8 Transfer Agency Fees -- A Shares ..................... 6 7 -- 19 12 Transfer Agency Fees -- L Shares ..................... 11 8 31 27 12 Registration fees ................................... 4 2 4 13 4 Transfer Agency Out of Pocket Expenses .............. 3 3 4 16 5 Professional Fees ................................... 3 2 3 14 5 Printing Fees ....................................... 2 1 2 10 3 Trustee Fees ........................................ 1 1 1 4 1 Other Expenses ...................................... 3 1 2 5 2 ------- ------- ------- -------- ------- Total Expenses ...................................... 938 549 1,183 3,679 1,238 ------- ------- ------- -------- ------- Less: Investment Advisory Fees Waived ................... (44) (27) (127) (85) (39) Distribution Fees Waived/Expenses Reimbursed -- A Shares ......................... (5) (6) -- (22) (13) Distribution Fees Waived -- L Shares ............... (60) (30) (163) (45) (28) ------- ------- ------- -------- ------- Net Expenses ........................................... 829 486 893 3,527 1,158 ------- ------- ------- -------- ------- Net Investment Income .................................. 2,779 1,896 6,778 12,359 2,646 ------- ------- ------- -------- ------- Net Realized and Unrealized Gain (Loss) on Investments and Foreign Currency Transactions: Net Realized Gain (Loss) on Securities Sold ......... 2,588 1,817 1,289 10,242 967 Net Realized Gain on Forward Foreign Currencies and Foreign Currency Translations ................. -- -- -- -- -- Net Change in Unrealized Depreciation on Forward Foreign Currency Contracts, Foreign Currency and Translation of Other Assets and Liabilities in Foreign Currency .................................. -- -- -- -- -- Net Change in Unrealized Appreciation (Depreciation) on Investments ..................... (7,701) (4,522) 6,896 (43,427) (4,261) ------- ------- ------- -------- ------- Total Net Realized and Unrealized Gain (Loss) on Investments .................................... (5,113) (2,705) 8,185 (33,185) (3,294) ------- ------- ------- -------- ------- Net Increase (Decrease) in Net Assets From Operations .......................................... $(2,334) $ (809) $14,963 $(20,826) $ (648) ======= ======= ======= ======== ======= Amounts designated as "--" are either $0 or have been rounded to $0. THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS. 50 (UNAUDITED) - ------------------------------------------------------------------------------------------------------------------------------------ LIMITED- TERM FEDERAL SHORT-TERM MORTGAGE MARYLAND U.S. TREASURY STRATEGIC ECURITIES MUNICIPAL SHORT-TERM SECURITIES INCOME FUND BOND FUND BOND FUND FUND FUND ---------- ----------- ----------- ------------- ----------- Income: Interest Income .....................................$ 7,556 $ 1,150 $ 5,439 $ 2,640 $ 6,945 Net Income from Securities Lending .................. 5 -- 25 -- 11 Less: Foreign Taxes Withheld ........................ -- -- -- -- (8) -------- ------- ------- ------- ------- Total Income ........................................ 7,561 1,150 5,464 2,640 6,948 -------- ------- ------- ------- ------- Expenses: Investment Advisory Fees ............................ 1,843 184 1,105 793 919 Administration Fees ................................. 195 19 117 84 74 Distribution Fees -- A Shares ........................ 14 -- 8 15 -- Distribution Fees -- L Shares ........................ 745 139 161 574 763 Custody Fees ........................................ 12 1 7 2 18 Transfer Agency Shareholder Servicing Fees .......... 7 1 4 3 3 Transfer Agency Fees -- T Shares ..................... 8 8 8 8 8 Transfer Agency Fees -- A Shares ..................... 10 -- 8 11 -- Transfer Agency Fees -- L Shares ..................... 45 10 18 37 36 Registration fees ................................... 25 1 6 4 4 Transfer Agency Out of Pocket Expenses .............. 13 1 8 5 5 Professional Fees ................................... 9 1 6 4 4 Printing Fees ....................................... 7 1 4 3 3 Trustee Fees ........................................ 3 -- 1 1 1 Other Expenses ...................................... 5 1 4 6 4 -------- ------- ------- ------- ------- Total Expenses ...................................... 2,941 367 1,465 1,550 1,842 -------- ------- ------- ------- ------- Less: Investment Advisory Fees Waived ................... (142) (23) (81) (73) (108) Distribution Fees Waived/Expenses Reimbursed -- A Shares ......................... (8) -- (8) (11) -- Distribution Fees Waived-- L Shares ............... (332) (13) (88) (366) (381) -------- ------- ------- ------- ------- Net Expenses ........................................... 2,459 331 1,288 1,100 1,353 -------- ------- ------- ------- ------- Net Investment Income .................................. 5,102 819 4,176 1,540 5,595 -------- ------- ------- ------- ------- Net Realized and Unrealized Gain (Loss) on Investments and Foreign Currency Transactions: Net Realized Gain (Loss) on Securities Sold ......... (2,325) 345 674 1,085 1,412 Net Realized Gain on Forward Foreign Currencies and Foreign Currency Translations ................. -- -- -- -- 2,533 Net Change in Unrealized Depreciation on Forward Foreign Currency Contracts, Foreign Currency and Translation of Other Assets and Liabilities in Foreign Currency .................................. -- -- -- -- (436) Net Change in Unrealized Appreciation (Depreciation) on Investments ..................... (11,733) (1,792) (4,648) (3,120) (4,309) -------- ------- ------- ------- ------- Total Net Realized and Unrealized Gain (Loss) on Investments .................................... (14,058) (1,447) (3,974) (2,035) (800) -------- ------- ------- ------- ------- Net Increase (Decrease) in Net Assets From Operations ..........................................$ (8,956) $ (628) $ 202 $ (495) $ 4,795 ======== ======= ======= ======= ======= VIRGINIA U.S. INTERMEDIATE VIRGINIA GOVERNMENT MUNICIPAL MUNICIPAL SECURITIES FUND BOND FUND BOND FUND --------------- ------------ ----------- Income: Interest Income ..................................... $ 5,518 $ 4,131 $ 1,315 Net Income from Securities Lending .................. 49 -- -- Less: Foreign Taxes Withheld ........................ -- -- -- -------- ------- ------- Total Income ........................................ 5,567 4,131 1,315 -------- ------- ------- Expenses: Investment Advisory Fees ............................ 1,135 671 199 Administration Fees ................................. 106 71 21 Distribution Fees -- A Shares ........................ 16 8 -- Distribution Fees -- L Shares ........................ 167 -- 76 Custody Fees ........................................ 6 2 1 Transfer Agency Shareholder Servicing Fees .......... 4 2 1 Transfer Agency Fees -- T Shares ..................... 8 8 8 Transfer Agency Fees -- A Shares ..................... 11 7 -- Transfer Agency Fees -- L Shares ..................... 21 -- 9 Registration fees ................................... 6 4 1 Transfer Agency Out of Pocket Expenses .............. 7 5 1 Professional Fees ................................... 5 4 1 Printing Fees ....................................... 4 3 -- Trustee Fees ........................................ 1 1 -- Other Expenses ...................................... 6 3 -- -------- ------- ------- Total Expenses ...................................... 1,503 789 318 -------- ------- ------- Less: Investment Advisory Fees Waived ................... (50) -- -- Distribution Fees Waived/Expenses Reimbursed -- A Shares ......................... (9) (13) -- Distribution Fees Waived -- L Shares ............... (33) -- (11) -------- ------- ------- Net Expenses ........................................... 1,411 776 307 -------- ------- ------- Net Investment Income .................................. 4,156 3,355 1,008 -------- ------- ------- Net Realized and Unrealized Gain (Loss) on Investments and Foreign Currency Transactions: Net Realized Gain (Loss) on Securities Sold ......... (2,348) 632 567 Net Realized Gain on Forward Foreign Currencies and Foreign Currency Translations ................. -- -- -- Net Change in Unrealized Depreciation on Forward Foreign Currency Contracts, Foreign Currency and Translation of Other Assets and Liabilities in Foreign Currency .................................. -- -- -- Net Change in Unrealized Appreciation (Depreciation) on Investments ..................... (8,433) (4,698) (1,893) -------- ------- ------- Total Net Realized and Unrealized Gain (Loss) on Investments .................................... (10,781) (4,066) (1,326) -------- ------- ------- Net Increase (Decrease) in Net Assets From Operations .......................................... $ (6,625) $ (711) $ (318) ======== ======= -====== THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.
51
STATEMENTS OF CHANGES IN NET ASSETS (000) - ------------------------------------------------------------------------------------------------------------------------------------ STI CLASSIC FIXED INCOME FUNDS FOR THE PERIOD ENDED NOVEMBER 30, 2003 (UNAUDITED) AND THE YEAR ENDED MAY 31, 2003 FLORIDA TAX-EXEMPT GEORGIA TAX-EXEMPT BOND FUND BOND FUND HIGH INCOME 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 --------- --------- --------- --------- --------- --------- Operations: Net Investment Income ................................ $ 2,779 $ 5,725 $ 1,896 $ 3,908 $ 6,778 $ 8,030 Net Realized Gain (Loss) on Securities Sold ......... 2,588 2,798 1,817 551 1,289 (988) Net Change in Unrealized Appreciation (Depreciation) on Investments ..................................... (7,701) 9,086 (4,522) 5,855 6,896 3,006 -------- -------- -------- -------- -------- -------- Increase (Decrease) in Net Assets from Operations .. (2,334) 17,609 (809) 10,314 14,963 10,048 -------- -------- -------- -------- -------- -------- Dividends and Distributions to Shareholders: Net Investment Income: T Shares ........................................... (2,290) (4,598) (1,635) (3,399) (3,840) (4,271) A Shares ........................................... (91) (203) (48) (87) (2) -- L Shares ........................................... (399) (920) (215) (421) (2,935) (3,759) Realized Capital Gains: T Shares ........................................... -- (625) -- -- -- -- A Shares ........................................... -- (26) -- -- -- -- L Shares ........................................... -- (154) -- -- -- -- -------- -------- -------- -------- -------- -------- Total Dividends and Distributions .................... (2,780) (6,526) (1,898) (3,907) (6,777) (8,030) -------- -------- -------- -------- -------- -------- Capital Transactions (1): T Shares: Proceeds from Shares Issued ........................ 47,943 40,464 10,822 23,167 18,487 78,322 Reinvestment of Cash Distributions ................. 273 934 272 576 1,437 2,263 Cost of Shares Redeemed ............................ (21,198) (23,528) (5,694) (21,636) (33,446) (10,708) -------- -------- -------- -------- -------- -------- Increase (Decrease) in Net Assets From T Share Transactions ................................. 27,018 17,870 5,400 2,107 (13,522) 69,877 -------- -------- -------- -------- -------- -------- A Shares: Proceeds from Shares Issued ........................ 1,658 9,924 990 435 1,066 -- Reinvestment of Cash Distributions ................. 47 149 22 45 -- -- Cost of Shares Redeemed ............................ (3,741) (5,146) (816) (842) (41) -- -------- -------- -------- -------- -------- -------- Increase (Decrease) in Net Assets From A Share Transactions ................................. (2,036) 4,927 196 (362) 1,025 -- -------- -------- -------- -------- -------- -------- L Shares: Proceeds from Shares Issued ........................ 3,993 25,216 2,143 5,069 30,396 32,945 Reinvestment of Cash Distributions ................. 289 854 187 359 1,867 2,357 Cost of Shares Redeemed ............................ (12,685) (9,812) (1,712) (3,962) (12,983) (17,558) -------- -------- -------- -------- -------- -------- Increase (Decrease) in Net Assets From L Share Transactions ................................. (8,403) 16,258 618 1,466 19,280 17,744 -------- -------- -------- -------- -------- -------- Increase (Decrease) in Net Assets From Share Transactions ................................. 16,579 39,055 6,214 3,211 6,783 87,621 -------- -------- -------- -------- -------- -------- Total Increase (Decrease) in Net Assets .......... 11,465 50,138 3,507 9,618 14,969 89,639 -------- -------- -------- -------- -------- -------- Net Assets: Beginning of Period .................................. 195,855 145,717 118,087 108,469 165,270 75,631 -------- -------- -------- -------- -------- -------- End of Period ........................................ $207,320 $195,855 $121,594 $118,087 $180,239 $165,270 ======== ======== ======== ======== ======== ======== * A shares commenced operations on October 27, 2003. (1) See Note 7 in Notes to Financial Statements for additional information. Amounts designated as "--" are either $0 or have been rounded to $0. THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS 52 INVESTMENT GRADE INVESTMENT GRADE TAX- BOND FUND EXEMPT BOND 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 ................................ $ 12,359 $ 35,672 $ 2,646 $ 5,201 Net Realized Gain (Loss) on Securities Sold ......... 10,242 23,215 967 9,776 Net Change in Unrealized Appreciation (Depreciation) on Investments ..................................... (43,427) 40,999 (4,261) 6,674 -------- -------- -------- -------- Increase (Decrease) in Net Assets from Operations .. (20,826) 99,886 (648) 21,651 -------- -------- -------- -------- Dividends and Distributions to Shareholders: Net Investment Income: T Shares ........................................... (13,075) (37,781) (2,211) (4,282) A Shares ........................................... (522) (1,060) (207) (441) L Shares ........................................... (457) (1,273) (229) (476) Realized Capital Gains: T Shares ........................................... -- -- -- (6,535) A Shares ........................................... -- -- -- (802) L Shares ........................................... -- -- -- (1,092) -------- -------- -------- -------- Total Dividends and Distributions .................... (14,054) (40,114) (2,647) (13,628) -------- -------- -------- -------- Capital Transactions (1): T Shares: Proceeds from Shares Issued ........................ 70,073 190,331 43,992 65,057 Reinvestment of Cash Distributions ................. 5,811 15,210 346 3,476 Cost of Shares Redeemed ............................ (185,482) (326,113) (27,596) (38,360) -------- -------- -------- -------- Increase (Decrease) in Net Assets From T Share Transactions ................................. (109,598) (120,572) 16,742 30,173 -------- -------- -------- -------- A Shares: Proceeds from Shares Issued ........................ 7,067 23,705 2,474 4,022 Reinvestment of Cash Distributions ................. 461 968 160 1,017 Cost of Shares Redeemed ............................ (7,312) (12,533) (3,170) (4,495) -------- -------- -------- -------- Increase (Decrease) in Net Assets From A Share Transactions ................................. 216 12,140 (536) 544 -------- -------- -------- -------- L Shares: Proceeds from Shares Issued ........................ 5,537 21,399 3,342 13,844 Reinvestment of Cash Distributions ................. 393 1,095 191 1,334 Cost of Shares Redeemed ............................ (10,860) (23,304) (6,570) (8,216) -------- -------- -------- -------- Increase (Decrease) in Net Assets From L Share Transactions ................................. (4,930) (810) (3,037) 6,962 -------- -------- -------- -------- Increase (Decrease) in Net Assets From Share Transactions ................................. (114,312) (109,242) 13,169 37,679 -------- -------- -------- -------- Total Increase (Decrease) in Net Assets .......... (149,192) (49,470) 9,874 45,702 -------- -------- -------- -------- Net Assets: Beginning of Period .................................. 894,026 943,496 239,925 194,223 -------- -------- -------- -------- End of Period ........................................ $744,834 $894,026 $249,799 $239,925 ======== ======== ======== ======== LIMITED-TERM FEDERAL MARYLAND MUNICIPAL MORTGAGE SECURITIES FUND BOND 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 ................................ $ 5,102 $ 7,976 $ 819 $ 1,928 Net Realized Gain (Loss) on Securities Sold ......... (2,325) 2,377 345 832 Net Change in Unrealized Appreciation (Depreciation) on Investments ..................................... (11,733) 9,868 (1,792) 2,803 -------- -------- ------- -------- Increase (Decrease) in Net Assets from Operations .. (8,956) 20,221 (628) 5,563 -------- -------- ------- ------- Dividends and Distributions to Shareholders: Net Investment Income: T Shares ........................................... (5,438) (8,520) (482) (1,251) A Shares ........................................... (154) (245) -- -- L Shares ........................................... (1,548) (2,670) (336) (674) Realized Capital Gains: T Shares ........................................... -- (267) -- (41) A Shares ........................................... -- (9) -- -- L Shares ........................................... -- (111) -- (30) -------- -------- ------- ------- Total Dividends and Distributions .................... (7,140) (11,822) (818) (1,996) -------- -------- ------- ------- Capital Transactions (1): T Shares: Proceeds from Shares Issued ........................ 208,573 226,297 2,751 19,146 Reinvestment of Cash Distributions ................. 1,906 3,910 134 301 Cost of Shares Redeemed ............................ (53,105) (80,208) (4,106) (24,605) -------- -------- ------- ------- Increase (Decrease) in Net Assets From T Share Transactions ................................. 157,374 149,999 (1,221) (5,158) -------- -------- ------- ------- A Shares: Proceeds from Shares Issued ........................ 4,521 18,913 -- -- Reinvestment of Cash Distributions ................. 134 228 -- -- Cost of Shares Redeemed ............................ (6,770) (7,223) -- -- -------- -------- ------- ------- Increase (Decrease) in Net Assets From A Share Transactions ................................. (2,115) 11,918 -- -- -------- -------- ------- ------- L Shares: Proceeds from Shares Issued ........................ 22,651 160,430 3,467 9,395 Reinvestment of Cash Distributions ................. 1,278 2,359 282 596 Cost of Shares Redeemed ............................ (62,917) (14,640) (7,724) (5,226) -------- -------- ------- ------- Increase (Decrease) in Net Assets From L Share Transactions ................................. (38,988) 148,149 (3,975) 4,765 -------- -------- ------- ------- Increase (Decrease) in Net Assets From Share Transactions ................................. 116,271 310,066 (5,196) (393) -------- -------- ------- ------- Total Increase (Decrease) in Net Assets .......... 100,175 318,465 (6,642) 3,174 -------- -------- ------- ------- Net Assets: Beginning of Period .................................. 500,597 182,132 60,057 56,883 -------- -------- ------- ------- End of Period ........................................ $600,772 $500,597 $53,415 $60,057 ======== ======== ======= =======
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS 53
STATEMENTS OF CHANGES IN NET ASSETS (000) - ------------------------------------------------------------------------------------------------------------------------------------ STI CLASSIC FIXED INCOME FUNDS FOR THE PERIOD ENDED NOVEMBER 30, 2003 (UNAUDITED) AND THE YEAR ENDED MAY 31, 2003 SHORT-TERM SHORT-TERM U.S. TREASURY BOND FUND SECURITIES 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 ................................ $ 4,176 $ 11,183 $ 1,540 $ 4,346 Net Realized Gain (Loss) on Securities Sold .......... 674 (6,286) 1,085 2,689 Net Realized Gain (Loss) on Forward Foreign Currencies and Foreign Currency Translation .................... -- -- -- -- Net Change in Unrealized Appreciation (Depreciation) on Forward Foreign Currency Contracts, Foreign Currency and Translation of Other Assets and Liabilities in Foreign Currency .................... -- -- -- -- Net Change in Unrealized Appreciation (Depreciation) on Investments ..................................... (4,648) 7,359 (3,120) 1,929 -------- -------- -------- -------- Increase (Decrease) in Net Assets from Operations .. 202 12,256 (495) 8,964 -------- -------- -------- -------- Dividends and Distributions to Shareholders: Net Investment Income: T Shares ........................................... (3,844) (10,196) (822) (2,438) A Shares ........................................... (80) (148) (113) (191) L Shares ........................................... (320) (836) (605) (1,717) Realized Capital Gains: T Shares ........................................... -- -- -- (688) A Shares ........................................... -- -- -- (62) L Shares ........................................... -- -- -- (649) -------- -------- -------- -------- Total Dividends and Distributions .................... (4,244) (11,180) (1,540) (5,745) -------- -------- -------- -------- Capital Transactions (1): T Shares: Proceeds from Shares Issued ........................ 63,260 117,712 9,306 42,670 Reinvestment of Cash Distributions ................. 1,238 2,890 144 653 Cost of Shares Repurchased ......................... (63,306) (124,705) (26,545) (30,621) -------- -------- -------- -------- Increase (Decrease) in Net Assets From T Share Transactions ....................................... 1,192 (4,103) (17,095) 12,702 -------- -------- -------- -------- A Shares: Proceeds from Shares Issued ........................ 4,611 7,799 5,550 19,530 Reinvestment of Cash Distributions ................. 64 108 91 217 Cost of Shares Repurchased ......................... (2,608) (7,986) (4,196) (9,039) -------- -------- -------- -------- Increase (Decrease) in Net Assets From A Share Transactions ................................. 2,067 (79) 1,445 10,708 -------- -------- -------- -------- L Shares: Proceeds from Shares Issued ........................ 6,825 18,740 15,439 95,244 Reinvestment of Cash Distributions ................. 253 600 516 2,065 Cost of Shares Repurchased ......................... (9,083) (13,276) (43,089) (41,630) -------- -------- -------- -------- Increase (Decrease) in Net Assets From L Share Transactions ................................. (2,005) 6,064 (27,134) 55,679 -------- -------- -------- -------- Increase (Decrease) in Net Assets From Share Transactions .................................. 1,254 1,882 (42,784) 79,089 -------- -------- -------- -------- Total Increase (Decrease) in Net Assets .......... (2,788) 2,958 (44,819) 82,308 -------- -------- -------- -------- Net Assets: Beginning of Period .................................. 341,001 338,043 264,932 182,624 -------- -------- -------- -------- End of Period ........................................ $338,213 $341,001 $220,113 $264,932 ======== ======== ======== ======== * A shares commenced operations on October 8, 2003. (1) See Note 7 in Notes to Financial Statements for additional information. Amounts designated as "--" are either $0 or have been rounded to $0. THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS 54 U.S. GOVERNMENT STRATEGIC INCOME FUND* SECURITIES 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 ................................ $ 5,595 $ 6,980 $ 4,156 $ 10,089 Net Realized Gain (Loss) on Securities Sold .......... 1,412 866 (2,348) 3,921 Net Realized Gain (Loss) on Forward Foreign Currencies and Foreign Currency Translation .................... 2,533 (4,173) -- -- Net Change in Unrealized Appreciation (Depreciation) on Forward Foreign Currency Contracts, Foreign Currency and Translation of Other Assets and Liabilities in Foreign Currency .................... (436) 486 -- -- Net Change in Unrealized Appreciation (Depreciation) on Investments ..................................... (4,309) 7,654 (8,433) 8,184 -------- -------- -------- -------- Increase (Decrease) in Net Assets from Operations .. 4,795 11,813 (6,625) 22,194 -------- -------- -------- -------- Dividends and Distributions to Shareholders: Net Investment Income: T Shares ........................................... (1,812) (3,391) (4,360) (9,284) A Shares ........................................... (2) -- (126) (271) L Shares ........................................... (3,940) (3,676) (398) (1,246) Realized Capital Gains: T Shares ........................................... -- -- -- (548) A Shares ........................................... -- -- -- (13) L Shares ........................................... -- -- -- (91) -------- -------- -------- -------- Total Dividends and Distributions .................... (5,754) (7,067) (4,884) (11,453) -------- -------- -------- -------- Capital Transactions (1): T Shares: Proceeds from Shares Issued ........................ 14,675 33,833 68,824 135,338 Reinvestment of Cash Distributions ................. 323 607 1,416 3,379 Cost of Shares Repurchased ......................... (12,549) (17,743) (43,265) (57,596) -------- -------- -------- -------- Increase (Decrease) in Net Assets From T Share Transactions ....................................... 2,449 16,697 26,975 81,121 -------- -------- -------- -------- A Shares: Proceeds from Shares Issued ........................ 2,525 -- 8,336 16,742 Reinvestment of Cash Distributions ................. -- -- 108 257 Cost of Shares Repurchased ......................... (80) -- (10,303) (16,515) -------- -------- -------- -------- Increase (Decrease) in Net Assets From A Share Transactions ................................. 2,445 -- (1,859) 484 -------- -------- -------- -------- L Shares: Proceeds from Shares Issued ........................ 57,648 103,253 4,130 19,543 Reinvestment of Cash Distributions ................. 2,747 2,635 331 1,155 Cost of Shares Repurchased ......................... (32,091) (18,667) (14,503) (14,717) -------- -------- -------- -------- Increase (Decrease) in Net Assets From L Share Transactions ................................. 28,304 87,221 (10,042) 5,981 -------- -------- -------- -------- Increase (Decrease) in Net Assets From Share Transactions .................................. 33,198 103,918 15,074 87,586 -------- -------- -------- -------- Total Increase (Decrease) in Net Assets .......... 32,239 108,664 3,565 98,327 -------- -------- -------- -------- Net Assets: Beginning of Period .................................. 191,871 83,207 307,341 209,014 -------- -------- -------- -------- End of Period ........................................ $224,110 $191,871 $310,906 $307,341 ======== ======== ======== ======== VIRGINIA INTERMEDIATE MUNICIPAL BOND FUND VIRGINIA MUNICIPAL BOND 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 ................................ $ 3,355 $ 7,253 $ 1,008 $ 2,368 Net Realized Gain (Loss) on Securities Sold .......... 632 2,169 567 896 Net Realized Gain (Loss) on Forward Foreign Currencies and Foreign Currency Translation .................... -- -- -- -- Net Change in Unrealized Appreciation (Depreciation) on Forward Foreign Currency Contracts, Foreign Currency and Translation of Other Assets and Liabilities in Foreign Currency .................... -- -- -- -- Net Change in Unrealized Appreciation (Depreciation) on Investments ..................................... (4,698) 7,601 (1,893) 2,913 -------- -------- ------- ------- Increase (Decrease) in Net Assets from Operations .. (711) 17,023 (318) 6,177 -------- -------- ------- ------- Dividends and Distributions to Shareholders: Net Investment Income: T Shares ........................................... (3,187) (6,987) (811) (1,962) A Shares ........................................... (167) (272) -- -- L Shares ........................................... -- -- (197) (408) Realized Capital Gains: T Shares ........................................... -- (1,900) -- (136) A Shares ........................................... -- (69) -- -- L Shares ........................................... -- -- -- (40) -------- -------- ------- ------- Total Dividends and Distributions .................... (3,354) (9,228) (1,008) (2,546) -------- -------- ------- ------- Capital Transactions (1): T Shares: Proceeds from Shares Issued ........................ 8,445 28,200 4,751 8,431 Reinvestment of Cash Distributions ................. 106 1,656 30 185 Cost of Shares Repurchased ......................... (20,354) (22,296) (5,379) (19,915) -------- -------- ------- -------- Increase (Decrease) in Net Assets From T Share Transactions ....................................... (11,803) 7,560 (598) (11,299) -------- -------- ------- -------- A Shares: Proceeds from Shares Issued ........................ 1,982 4,074 -- -- Reinvestment of Cash Distributions ................. 125 249 -- -- Cost of Shares Repurchased ......................... (3,097) (1,425) -- -- -------- -------- ------- ------- Increase (Decrease) in Net Assets From A Share Transactions ................................. (990) 2,898 -- -- -------- -------- ------- ------- L Shares: Proceeds from Shares Issued ........................ -- -- 1,766 6,447 Reinvestment of Cash Distributions ................. -- -- 140 312 Cost of Shares Repurchased ......................... -- -- (5,084) (4,047) -------- -------- ------- ------- Increase (Decrease) in Net Assets From L Share Transactions ................................. -- -- (3,178) 2,712 -------- -------- ------- ------- Increase (Decrease) in Net Assets From Share Transactions .................................. (12,793) 10,458 (3,776) (8,587) -------- -------- ------- ------- Total Increase (Decrease) in Net Assets .......... (16,858) 18,253 (5,102) (4,956) -------- -------- ------- ------- Net Assets: Beginning of Period .................................. 216,916 198,663 65,058 70,014 -------- -------- ------- ------- End of Period ........................................ $200,058 $216,916 $59,956 $65,058 -======= ======== ======= =======
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS 55
FINANCIAL HIGHLIGHTS - ------------------------------------------------------------------------------------------------------------------------------------ STI CLASSIC FIXED INCOME FUNDS FOR THE PERIOD ENDED NOVEMBER 30, 2003 (UNAUDITED) AND THE YEARS ENDED MAY 31, (UNLESS OTHERWISE INDICATED) FOR A SHARE OUTSTANDING THROUGHOUT THE PERIODS NET ASSET NET REALIZED AND DIVIDENDS TOTAL VALUE, NET UNREALIZED GAINS TOTAL FROM NET DISTRIBUTIONS DIVIDENDS BEGINNING INVESTMENT (LOSSES) FROM INVESTMENT FROM REALIZED TAX RETURN AND OF PERIOD INCOME ON INVESTMENTS OPERATIONS INCOME CAPITAL GAINS OF CAPITAL DISTRIBUTIONS ---------- --------- ---------------- ------------ ---------- ------------- ---------- ------------- FLORIDA TAX-EXEMPT BOND FUND T Shares 2003* $11.69 $0.17(1) $(0.29)(1) $(0.12) $(0.17) $ -- $ -- $(0.17) 2003 10.95 0.40 0.79 1.19 (0.40) (0.05) -- (0.45) 2002 10.79 0.40 0.22 0.62 (0.40) (0.06) -- (0.46) 2001 10.06 0.44 0.73 1.17 (0.44) -- -- (0.44) 2000 10.59 0.44 (0.49) (0.05) (0.44) (0.04) -- (0.48) 1999 10.72 0.42 (0.02) 0.40 (0.42) (0.11) -- (0.53) A Shares 2003* $11.69 $0.16(1) $(0.30)(1) $(0.14) $(0.16) $ -- $ -- $(0.16) 2003 10.95 0.38 0.79 1.17 (0.38) (0.05) -- (0.43) 2002 10.79 0.38 0.22 0.60 (0.38) (0.06) -- (0.44) 2001 10.07 0.42 0.72 1.14 (0.42) -- -- (0.42) 2000 10.60 0.42 (0.49) (0.07) (0.42) (0.04) -- (0.46) 1999 10.72 0.40 (0.01) 0.39 (0.40) (0.11) -- (0.51) L Shares 2003* $11.71 $0.13(1) $(0.29)(1) $(0.16) $(0.13) $ -- $ -- $(0.13) 2003 10.97 0.32 0.79 1.11 (0.32) (0.05) -- (0.37) 2002 10.81 0.32 0.22 0.54 (0.32) (0.06) -- (0.38) 2001 10.09 0.37 0.72 1.09 (0.37) -- -- (0.37) 2000 10.62 0.36 (0.49) (0.13) (0.36) (0.04) -- (0.40) 1999 10.74 0.35 (0.01) 0.34 (0.35) (0.11) -- (0.46) GEORGIA TAX-EXEMPT BOND FUNDS T Shares 2003* $10.89 $0.18(1) $(0.26)(1) $(0.08) $(0.18) $ -- $ -- $(0.18) 2003 10.29 0.38 0.60 0.98 (0.38) -- -- (0.38) 2002 10.10 0.39 0.19 0.58 (0.39) -- -- (0.39) 2001 9.50 0.40 0.60 1.00 (0.40) -- -- (0.40) 2000 10.03 0.40 (0.49) (0.09) (0.40) (0.04) -- (0.44) 1999 10.11 0.39 (0.06) 0.33 (0.39) (0.02) -- (0.41) A Shares 2003* $10.90 $0.16(1) $(0.25)(1) $(0.09) $(0.16) $ -- $ -- $(0.16) 2003 10.31 0.35 0.59 0.94 (0.35) -- -- (0.35) 2002 10.12 0.37 0.19 0.56 (0.37) -- -- (0.37) 2001 9.51 0.38 0.61 0.99 (0.38) -- -- (0.38) 2000 10.05 0.38 (0.50) (0.12) (0.38) (0.04) -- (0.42) 1999 10.13 0.37 (0.06) 0.31 (0.37) (0.02) -- (0.39) L Shares 2003* $10.90 $0.14(1) $(0.26)(1) $(0.12) $(0.14) $ -- $ -- $(0.14) 2003 10.30 0.30 0.60 0.90 (0.30) -- -- (0.30) 2002 10.11 0.32 0.19 0.51 (0.32) -- -- (0.32) 2001 9.51 0.33 0.60 0.93 (0.33) -- -- (0.33) 2000 10.04 0.33 (0.49) (0.16) (0.33) (0.04) -- (0.37) 1999 10.12 0.32 (0.06) 0.26 (0.32) (0.02) -- (0.34) HIGH INCOME FUND (A) T Shares 2003* $ 7.16 $0.30(1) $ 0.36(1) $ 0.66 $(0.30) $ -- $ -- $(0.30) 2003 7.25 0.61 (0.09) 0.52 (0.61) -- -- (0.61) 2002(2) 7.37 0.39 (0.12) 0.27 (0.39) -- -- (0.39) A Shares 2003(3)* $ 7.39 $0.03++(1) $ 0.15++(1) $ 0.18 $(0.05) $ -- $ -- $(0.05) L Shares 2003* $ 7.16 $0.28(1) $ 0.36(1) $ 0.64 $(0.28) $ -- $ -- $(0.28) 2003 7.25 0.57 (0.09) 0.48 (0.57) -- -- 0.57) 2002 7.69 0.55 (0.44) 0.11 (0.55) -- -- (0.55) 2001 7.88 0.55 (0.19) 0.36 (0.55) -- -- (0.55) 2000(4) 7.98 0.09 (0.10) (0.01) (0.09) -- -- (0.09) For the years ended March 31: 2000 9.77 0.87 (1.85) (0.98) (0.81) -- -- (0.81) 1999 9.99 0.51 0.04 0.55 (0.57) (0.15) (0.05) (0.77) RATIO OF RATIO OF EXPENSES TO NET ASSET NET ASSETS, RATIO OF NET NET INVESTMENT AVERAGE NET ASSETS PORTFOLIO VALUE, END TOTAL END OF EXPENSES TO INCOME TO (EXCLUDING WAIVERS TURNOVER OF PERIOD RETURN+ PERIOD (000) AVERAGE NET ASSETS AVERAGE NET ASSETS AND REIMBURSEMENTS) RATE ----------- --------- ----------- ------------------ ------------------ ------------------ ---------- FLORIDA TAX-EXEMPT BOND FUND T Shares 2003* $11.39 (1.10)% $170,790 0.71% 2.96% 0.75% 30% 2003 11.69 11.13 147,423 0.71 3.54 0.75 62 2002 10.95 5.88 120,885 0.71 3.65 0.76 91 2001 10.79 11.84 107,867 0.71 4.19 0.76 59 2000 10.06 (0.48) 93,040 0.67 4.25 0.78 88 1999 10.59 3.72 118,609 0.67 3.90 0.77 72 A Shares 2003* $11.39 (1.21)% $ 5,903 0.92% 2.76% 1.12% 30% 2003 11.69 10.89 8,191 0.92 3.29 1.13 62 2002 10.95 5.66 2,935 0.92 3.44 1.37 91 2001 10.79 11.50 2,747 0.91 4.00 1.38 59 2000 10.07 (0.68) 2,875 0.87 4.05 1.36 88 1999 10.60 3.62 3,799 0.87 3.71 1.31 72 L Shares 2003* $11.42 (1.37)% $ 30,627 1.42% 2.26% 1.80% 30% 2003 11.71 10.32 40,241 1.42 2.81 1.80 62 2002 10.97 5.15 21,897 1.42 2.93 1.84 91 2001 10.81 10.95 12,806 1.41 3.49 1.89 59 2000 10.09 (1.17) 9,791 1.37 3.54 1.89 88 1999 10.62 3.13 14,762 1.37 3.21 1.88 72 GEORGIA TAX-EXEMPT BOND FUND T Shares 2003* $10.63 (0.75)% $102,039 0.71% 3.30% 0.76% 50% 2003 10.89 9.64 98,866 0.71 3.55 0.76 17 2002 10.29 5.81 91,356 0.71 3.79 0.76 23 2001 10.10 10.67 85,880 0.71 4.03 0.77 21 2000 9.50 (0.90) 81,160 0.67 4.13 0.77 19 1999 10.03 3.33 87,452 0.67 3.87 0.78 12 A Shares 2003* $10.65 (0.76)% $ 2,764 0.92% 3.11% 1.36% 50% 2003 10.90 9.29 2,630 0.92 3.34 1.41 17 2002 10.31 5.58 2,844 0.92 3.58 1.36 23 2001 10.12 10.56 2,901 0.91 3.83 1.42 21 2000 9.51 (1.26) 2,458 0.87 3.93 1.40 19 1999 10.05 3.13 3,676 0.87 3.67 1.25 12 L Shares 2003* $10.64 (1.11)% $ 16,791 1.42% 2.59% 1.83% 50% 2003 10.90 8.86 16,591 1.42 2.84 1.84 17 2002 10.30 5.07 14,269 1.42 3.08 1.84 23 2001 10.11 9.92 14,079 1.41 3.33 1.89 21 2000 9.51 (1.59) 8,827 1.37 3.43 1.95 19 1999 10.04 2.63 13,358 1.37 3.19 1.89 12 HIGH INCOME FUND (A T Shares 2003* $ 7.51 9.31% $ 91,749 0.76% 8.29% 0.91% 19% 2003 7.16 8.19 100,852 0.78 8.95 0.93 20 2002(2) 7.25 3.70 28,767 0.82 8.27 0.97 59 A Shares 2003(3)* $ 7.52 2.47% $ 1,029 1.12% 4.93% 1.27% 19% L Shares 2003* $ 7.52 9.11% $ 87,461 1.40% 7.62% 1.98% 19% 2003 7.16 7.52 64,418 1.40 8.43 2.00 20 2002 7.25 1.46 46,864 1.40 7.35 2.02 59 2001 7.69 4.74 19,875 1.40 6.88 2.13 10 2000(4) 7.88 (0.13) 3,075 1.40 6.57 2.83 -- For the years ended March 31: 2000 7.98 (10.84) 2,032 1.73 8.94 2.95 24 1999 9.77 5.64 7,230 1.91 5.09 2.22 95 * For the six month period ended November 30, 2003. All ratios for the period have been annualized. + Returns are for the period indicated and have not been annualized. Total return figures do not reflect applicable sales loads. Returns shown do not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares. ++ Ratios reflect the impact of the initial low level of average net assets associated with commencement of operations. (1) Per share data was calculated using the average shares method. (2) T shares commenced operations on October 3, 2001. All ratios for the period have been annualized. (3) A shares commenced operations on October 27, 2003. All ratios for the period have been annualized. (4) For the two month period ended May 31, 2000. All ratios for the period have been annualized. (A) On March 28, 2000, the ESC Strategic Income Fund exchanged all of its assets and liabilities for shares of the High Income Fund. The ESC Strategic Income Fund is the accounting survivor in this transaction, and as a result, its basis of accounting for assets and liabilities and its operating results for the periods prior to March 28, 2000 have been carried forward in these financial highlights. Subsequent to the merger, the High Income Fund changed its fiscal year end to May 31. Amounts designated as "--" are either $0 or have been rounded to $0.
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS 56 & 57
FINANCIAL HIGHLIGHTS - ------------------------------------------------------------------------------------------------------------------------------------ STI CLASSIC FIXED INCOME FUNDS FOR THE PERIOD ENDED NOVEMBER 30, 2003 (UNAUDITED) AND THE YEARS ENDED MAY 31, FOR A SHARE OUTSTANDING THROUGHOUT THE PERIODS NET ASSET NET REALIZED AND DIVIDENDS TOTAL VALUE, NET UNREALIZED GAINS TOTAL FROM NET DISTRIBUTIONS DIVIDENDS NET ASSET BEGINNING INVESTMENT (LOSSES) FROM INVESTMENT FROM REALIZED AND VALUE, END OF PERIOD INCOME ON INVESTMENTS OPERATIONS INCOME CAPITAL GAINS DISTRIBUTIONS OF PERIOD ---------- ---------- ---------------- ------------ ----------- ------------- ------------- ---------- INVESTMENT GRADE BOND FUND T Shares 2003* $10.94 $0.16(1) $(0.40)(1) $(0.24) $(0.19) $ -- $(0.19) $10.51 2003 10.24 0.40 0.76 1.16 (0.46) -- (0.46) 10.94 2002 10.23 0.51 0.01 0.52 (0.51) -- (0.51) 10.24 2001 9.58 0.61 0.65 1.26 (0.61) -- (0.61) 10.23 2000 10.36 0.61 (0.78) (0.17) (0.61) -- (0.61) 9.58 1999 10.65 0.56 (0.11) 0.45 (0.56) (0.18) (0.74) 10.36 A Shares 2003* $10.94 $0.14(1) $(0.40)(1) $(0.26) $(0.17) $ -- $(0.17) $10.51 2003 10.24 0.38 0.74 1.12 (0.42) -- (0.42) 10.94 2002 10.23 0.48 0.01 0.49 (0.48) -- (0.48) 10.24 2001 9.58 0.57 0.65 1.22 (0.57) -- (0.57) 10.23 2000 10.36 0.57 (0.78) (0.21) (0.57) -- (0.57) 9.58 1999 10.65 0.52 (0.11) 0.41 (0.52) (0.18) (0.70) 10.36 L Shares 2003* $10.95 $0.12(1) $(0.42)(1) $(0.30) $(0.14) $ -- $(0.14) $10.51 2003 10.25 0.31 0.76 1.07 (0.37) -- (0.37) 10.95 2002 10.24 0.42 0.01 0.43 (0.42) -- (0.42) 10.25 2001 9.59 0.53 0.65 1.18 (0.53) -- (0.53) 10.24 2000 10.37 0.52 (0.78) (0.26) (0.52) -- (0.52) 9.59 1999 10.66 0.47 (0.11) 0.36 (0.47) (0.18) (0.65) 10.37 INVESTMENT GRADE TAX EXEMPT BOND FUND T Shares 2003* $12.01 $0.14(1) $(0.16)(1) $(0.02) $(0.14) $ -- $(0.14) $11.85 2003 11.57 0.30 0.90 1.20 (0.30) (0.46) (0.76) 12.01 2002 11.38 0.34 0.46 0.80 (0.34) (0.27) (0.61) 11.57 2001 10.67 0.44 0.71 1.15 (0.44) -- (0.44) 11.38 2000 11.10 0.43 (0.29) 0.14 (0.43) (0.14) (0.57) 10.67 1999 11.40 0.43 0.10 0.53 (0.43) (0.40) (0.83) 11.10 A Shares 2003* $12.03 $0.11(1) $(0.16)(1) $(0.05) $(0.11) $ -- $(0.11) $11.87 2003 11.58 0.25 0.91 1.16 (0.25) (0.46) (0.71) 12.03 2002 11.39 0.29 0.46 0.75 (0.29) (0.27) (0.56) 11.58 2001 10.68 0.40 0.71 1.11 (0.40) -- (0.40) 11.39 2000 11.12 0.39 (0.30) 0.09 (0.39) (0.14) (0.53) 10.68 1999 11.41 0.38 0.11 0.49 (0.38) (0.40) (0.78) 11.12 L Shares 2003* $12.01 $0.09(1) $(0.16)(1) $(0.07) $(0.09) $ -- $(0.09) $11.85 2003 11.57 0.20 0.90 1.10 (0.20) (0.46) (0.66) 12.01 2002 11.38 0.24 0.46 0.70 (0.24) (0.27) (0.51) 11.57 2001 10.67 0.34 0.71 1.05 (0.34) -- (0.34) 11.38 2000 11.10 0.34 (0.29) 0.05 (0.34) (0.14) (0.48) 10.67 1999 11.40 0.33 0.10 0.43 (0.33) (0.40) (0.73) 11.10 LIMITED-TERM FEDERAL MORTGAGE SECURITIES FUND T Shares 2003* $10.59 $0.10(1) $(0.27)(1) $(0.17) $(0.14) $ -- $(0.14) $10.28 2003 10.31 0.29(1) 0.42(1) 0.71 (0.42) (0.01) (0.43) 10.59 2002 10.01 0.43 0.32 0.75 (0.43) (0.02) (0.45) 10.31 2001 9.62 0.55 0.39 0.94 (0.55) -- (0.55) 10.01 2000 9.94 0.55 (0.32) 0.23 (0.55) -- (0.55) 9.62 1999 10.12 0.54 (0.06) 0.48 (0.54) (0.12) (0.66) 9.94 A Shares 2003* $10.57 $0.09(1) $(0.27)(1) $(0.18) $(0.13) $ -- $(0.13) $10.26 2003 10.29 0.24(1) 0.44(1) 0.68 (0.39) (0.01) (0.40) 10.57 2002 10.00 0.40 0.31 0.71 (0.40) (0.02) (0.42) 10.29 2001 9.60 0.53 0.40 0.93 (0.53) -- (0.53) 10.00 2000 9.93 0.52 (0.33) 0.19 (0.52) -- (0.52) 9.60 1999 10.11 0.51 (0.06) 0.45 (0.51) (0.12) (0.63) 9.93 L Shares 2003* $10.59 $0.07(1) $(0.27)(1) $(0.20) $(0.11) $ -- $(0.11) $10.28 2003 10.31 0.21(1) 0.43(1) 0.64 (0.35) (0.01) (0.36) 10.59 2002 10.02 0.37 0.31 0.68 (0.37) (0.02) (0.39) 10.31 2001 9.62 0.50 0.40 0.90 (0.50) -- (0.50) 10.02 2000 9.94 0.49 (0.32) 0.17 (0.49) -- (0.49) 9.62 1999 10.12 0.48 (0.06) 0.42 (0.48) (0.12) (0.60) 9.94 RATIO OF RATIO OF EXPENSES TO NET ASSETS, RATIO OF NET NET INVESTMENT AVERAGE NET ASSETS PORTFOLIO TOTAL END OF EXPENSES TO INCOME TO (EXCLUDING WAIVERS TURNOVER RETURN+ PERIOD (000) AVERAGE NET ASSETS AVERAGE NET ASSETS AND REIMBURSEMENTS) RATE --------- -------------- ------------------ ------------------ ------------------- ----------- INVESTMENT GRADE BOND FUND T Shares 2003* (2.22)% $ 679,803 0.81% 3.10% 0.83% 70% 2003 11.61 821,342 0.81 3.92 0.83 137 2002 5.18 886,471 0.81 4.81 0.83 123 2001 13.55 860,073 0.81 6.17 0.84 131 2000 (1.76) 998,596 0.77 6.05 0.84 202 1999 4.25 1,149,068 0.77 5.25 0.85 221 A Shares 2003* (2.41)% $ 33,704 1.22% 2.70% 1.37% 70% 2003 11.16 34,874 1.22 3.45 1.38 137 2002 4.81 20,825 1.22 4.40 1.40 123 2001 13.09 21,244 1.21 5.77 1.42 131 2000 (2.17) 22,553 1.17 5.60 1.37 202 1999 3.86 34,913 1.17 4.87 1.36 221 L Shares 2003* (2.74)% $ 31,327 1.71% 2.21% 1.99% 70% 2003 10.61 37,810 1.71 3.01 1.97 137 2002 4.27 36,200 1.71 3.90 1.96 123 2001 12.54 25,791 1.70 5.24 1.99 131 2000 (2.63) 20,056 1.66 5.14 1.99 202 1999 3.35 26,020 1.66 4.40 2.00 221 INVESTMENT GRADE TAX-EXEMPT BOND FUND T Shares 2003* (0.16)% $ 199,783 0.81% 2.35% 0.84% 129% 2003 10.80 185,485 0.81 2.57 0.84 329 2002 7.15 149,200 0.81 2.93 0.84 311 2001 10.93 134,139 0.81 3.93 0.85 285 2000 1.41 117,384 0.77 3.98 0.83 226 1999 4.67 154,123 0.77 3.75 0.87 224 A Shares 2003* (0.37)% $ 20,905 1.22% 1.93% 1.37% 129% 2003 10.42 21,756 1.22 2.16 1.36 329 2002 6.71 20,436 1.22 2.51 1.36 311 2001 10.48 18,601 1.21 3.54 1.37 285 2000 0.90 19,443 1.17 3.59 1.33 226 1999 4.35 25,195 1.17 3.36 1.32 224 L Shares 2003* (0.61)% $ 29,111 1.70% 1.46% 1.91% 129% 2003 9.82 32,684 1.70 1.68 1.91 329 2002 6.21 24,587 1.70 2.03 1.92 311 2001 9.97 20,010 1.69 3.04 1.96 285 2000 0.52 14,678 1.65 3.11 1.95 226 1999 3.78 16,518 1.65 2.86 2.03 224 LIMITED-TERM FEDERAL MORTGAGE SECUITIES FUND T Shares 2003* (1.61)% $ 467,378 0.70% 1.96% 0.75% 68% 2003 6.99 320,718 0.70 2.79 0.75 117 2002 7.53 164,624 0.70 3.72 0.75 410 2001 10.02 107,674 0.70 5.62 0.76 532 2000 2.33 125,355 0.67 5.60 0.79 384 1999 4.75 135,256 0.67 5.28 0.77 379 A Shares 2003* (1.74)% $ 11,120 0.96% 1.72% 1.14% 68% 2003 6.72 13,668 0.96 2.33 1.20 117 2002 7.16 1,578 0.96 3.50 2.06 410 2001 9.84 849 0.95 5.39 2.28 532 2000 1.93 1,194 0.92 5.31 1.09 384 1999 4.47 2,214 0.92 5.03 1.52 379 L Shares 2003* (1.91)% $ 122,274 1.31% 1.36% 1.81% 68% 2003 6.33 166,211 1.31 1.97 1.80 117 2002 6.83 15,930 1.31 2.88 1.98 410 2001 9.50 3,452 1.30 4.99 2.60 532 2000 1.71 1,706 1.27 4.97 2.38 384 1999 4.14 2,119 1.27 4.69 2.42 379 * For the six month period ended November 30, 2003. All ratios for the period have been annualized. + Returns are for the period indicated and have not been annualized. Total return figures do not reflect applicable sales loads. Returns shown do not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares. (1) Per share data was calculated using the average shares method. Amounts designated as "--" are either $0 or have been rounded to $0.
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS 58 & 59
FINANCIAL HIGHLIGHTS - ------------------------------------------------------------------------------------------------------------------------------------ STI CLASSIC FIXED INCOME FUNDS FOR THE PERIOD ENDED NOVEMBER 30, 2003 (UNAUDITED) AND THE YEARS ENDED MAY 31, (UNLESS OTHERWISE INDICATED) FOR A SHARE OUTSTANDING THROUGHOUT THE PERIODS NET ASSET NET REALIZED AND DIVIDENDS TOTAL VALUE, NET UNREALIZED GAINS TOTAL FROM NET DISTRIBUTIONS DIVIDENDS NET ASSET BEGINNING INVESTMENT (LOSSES) FROM INVESTMENT FROM REALIZED AND VALUE, END OF PERIOD INCOME ON INVESTMENTS OPERATIONS INCOME CAPITAL GAINS DISTRIBUTIONS OF PERIOD --------- ---------- ---------------- ---------- ---------- ------------- ------------- ---------- MARYLAND MUNICIPAL BOND FUND (A) T Shares 2003* $10.94 $0.18(1) $(0.24)(1) $(0.06) $(0.18) $ -- $(0.18) $10.70 2003 10.32 0.37 0.63 1.00 (0.37) (0.01) (0.38) 10.94 2002 10.12 0.38 0.20 0.58 (0.38) -- (0.38) 10.32 2001 9.46 0.42 0.66 1.08 (0.42) -- (0.42) 10.12 2000 10.06 0.42 (0.60) (0.18) (0.42) -- (0.42) 9.46 1999 (2) 10.22 0.20 (0.15) 0.05 (0.20) (0.01) (0.21) 10.06 For the year ended November 30: 1998 9.95 0.42 0.27 0.69 (0.42) -- (0.42) 10.22 L Shares 2003* $10.96 $0.13(1) $(0.24)(1) $(0.11) $(0.13) $ -- $(0.13) $10.72 2003 10.34 0.27 0.63 0.90 (0.27) (0.01) (0.28) 10.96 2002 10.14 0.29 0.20 0.49 (0.29) -- (0.29) 10.34 2001 9.48 0.33 0.66 0.99 (0.33) -- (0.33) 10.14 2000 10.08 0.33 (0.60) (0.27) (0.33) -- (0.33) 9.48 1999 (2) 10.24 0.15 (0.15) -- (0.15) (0.01) (0.16) 10.08 For the year ended November 30: 1998 9.96 0.33 0.28 0.61 (0.33) -- (0.33) 10.24 SHORT-TERM BOND FUND T Shares 2003* $10.04 $0.13(1) $(0.12)(1) $ 0.01 $(0.13) $ -- $(0.13) $ 9.92 2003 10.01 0.33 0.03 0.36 (0.33) -- (0.33) 10.04 2002 10.04 0.46 (0.03) 0.43 (0.46) -- (0.46) 10.01 2001 9.65 0.56 0.39 0.95 (0.56) -- (0.56) 10.04 2000 9.91 0.53 (0.25) 0.28 (0.53) (0.01) (0.54) 9.65 1999 10.05 0.51 (0.10) 0.41 (0.52) (0.03) (0.55) 9.91 A Shares 2003* $10.07 $0.12(1) $(0.12)(1) $ -- $(0.12) $ -- $(0.12) $ 9.95 2003 10.04 0.31 0.03 0.34 (0.31) -- (0.31) 10.07 2002 10.06 0.44 (0.02) 0.42 (0.44) -- (0.44) 10.04 2001 9.67 0.54 0.39 0.93 (0.54) -- (0.54) 10.06 2000 9.93 0.51 (0.25) 0.26 (0.51) (0.01) (0.52) 9.67 1999 10.07 0.49 (0.10) 0.39 (0.50) (0.03) (0.53) 9.93 L Shares 2003* $10.06 $0.10(1) $(0.12)(1) $(0.02) $(0.10) $ -- $(0.10) $ 9.94 2003 10.03 0.28 0.03 0.31 (0.28) -- (0.28) 10.06 2002 10.06 0.40 (0.03) 0.37 (0.40) -- (0.40) 10.03 2001 9.67 0.52 0.39 0.91 (0.52) -- (0.52) 10.06 2000 9.93 0.48 (0.25) 0.23 (0.48) (0.01) (0.49) 9.67 1999 10.07 0.47 (0.11) 0.36 (0.47) (0.03) (0.50) 9.93 SHORT-TERM U.S. TREASURY SECURITIES FUND T Shares 2003* $10.36 $0.08(1) $(0.09)(1) $(0.01) $(0.08) $ -- $(0.08) $10.27 2003 10.20 0.22 0.22 0.44 (0.22) (0.06) (0.28) 10.36 2002 10.13 0.37 0.10 0.47 (0.37) (0.03) (0.40) 10.20 2001 9.85 0.49 0.28 0.77 (0.49) -- (0.49) 10.13 2000 9.95 0.46 (0.10) 0.36 (0.46) -- (0.46) 9.85 1999 9.97 0.47 (0.02) 0.45 (0.47) -- (0.47) 9.95 A Shares 2003* $10.35 $0.07(1) $(0.09)(1) $(0.02) $(0.07) $ -- $(0.07) $10.26 2003 10.19 0.20 0.22 0.42 (0.20) (0.06) (0.26) 10.35 2002 10.13 0.35 0.09 0.44 (0.35) (0.03) (0.38) 10.19 2001 9.85 0.48 0.28 0.76 (0.48) -- (0.48) 10.13 2000 9.95 0.45 (0.10) 0.35 (0.45) -- (0.45) 9.85 1999 9.96 0.46 (0.01) 0.45 (0.46) -- (0.46) 9.95 L Shares 2003* $10.34 $0.05(1) $(0.09)(1) $(0.04) $(0.05) $ -- $(0.05) $10.25 2003 10.18 0.17 0.22 0.39 (0.17) (0.06) (0.23) 10.34 2002 10.11 0.33 0.10 0.43 (0.33) (0.03) (0.36) 10.18 2001 9.83 0.46 0.28 0.74 (0.46) -- (0.46) 10.11 2000 9.93 0.42 (0.10) 0.32 (0.42) -- (0.42) 9.83 1999 9.94 0.44 (0.02) 0.42 (0.43) -- (0.43) 9.93 RATIO OF RATIO OF EXPENSES TO NET ASSETS, RATIO OF NET NET INVESTMENT AVERAGE NET ASSETS PORTFOLIO TOTAL END OF EXPENSES TO INCOME TO (EXCLUDING WAIVERS TURNOVER RETURN (+) PERIOD (000) AVERAGE NET ASSETS AVERAGE NET ASSETS AND REIMBURSEMENTS) RATE ------------ ------------- ------------------ -------------------- -------------------- --------- MARYLAND MUNICIPAL BOND FUND (A) T Shares 2003* (0.53)% $ 28,594 0.72% 3.35% 0.80% 3% 2003 9.85 30,501 0.70 3.47 0.78 31 2002 5.80 33,668 0.71 3.69 0.79 45 2001 11.59 26,526 0.72 4.16 0.82 42 2000 (1.78) 26,176 0.68 4.24 0.80 14 1999 (2) 0.48 29,658 0.70 3.83 1.37 19 For the year ended November 30: 1998 7.03 19,115 0.62 4.11 1.15 12 L Shares 2003* (0.99)% $ 24,821 1.64% 2.43% 1.81% 3% 2003 8.81 29,556 1.64 2.52 1.81 31 2002 4.84 23,215 1.64 2.75 1.83 45 2001 10.59 12,090 1.63 3.24 1.97 42 2000 (2.66) 6,212 1.59 3.34 1.95 14 1999 (2) 0.05 7,723 1.59 2.94 1.98 19 For the year ended November 30: 1998 6.17 3,246 1.57 3.16 1.96 12 SHORT-TERM BOND FUND T Shares 2003* 0.08% $300,319 0.70% 2.51% 0.75% 24% 2003 3.70 302,708 0.70 3.34 0.75 89 2002 4.29 305,884 0.70 4.48 0.75 142 2001 10.13 215,458 0.70 5.71 0.76 87 2000 2.87 180,402 0.67 5.40 0.76 70 1999 4.06 209,904 0.67 5.12 0.77 108 A Shares 2003* (0.03)% $ 7,677 0.91% 2.30% 1.19% 24% 2003 3.47 5,685 0.91 3.09 1.28 89 2002 4.19 5,767 0.91 4.28 1.26 142 2001 9.90 4,176 0.90 5.47 1.71 87 2000 2.67 1,446 0.87 5.20 1.75 70 1999 3.88 1,825 0.87 4.92 1.59 108 L Shares 2003* (0.20)% $ 30,217 1.26% 1.95% 1.85% 24% 2003 3.11 32,608 1.26 2.74 1.85 89 2002 3.75 26,392 1.26 3.89 1.87 142 2001 9.60 10,682 1.25 5.09 2.17 87 2000 2.31 2,065 1.22 4.85 2.41 70 1999 3.50 2,341 1.22 4.55 2.33 108 SHORT-TERM U.S. TREASURY SECUITIES FUND T Shares 2003* (0.14)% $103,587 0.70% 1.47% 0.76% 70% 2003 4.31 121,617 0.69 2.07 0.75 140 2002 4.69 107,169 0.70 3.57 0.76 117 2001 8.02 88,398 0.71 4.95 0.78 87 2000 3.75 72,570 0.67 4.70 0.79 50 1999 4.59 56,027 0.67 4.69 0.78 57 A Shares 2003* (0.22)% $ 16,862 0.86% 1.30% 1.05% 70% 2003 4.13 15,558 0.86 1.76 1.07 140 2002 4.44 4,735 0.86 3.36 1.41 117 2001 7.87 2,179 0.85 4.81 1.56 87 2000 3.58 2,066 0.82 4.50 1.44 50 1999 4.54 2,799 0.82 4.54 1.34 57 L Shares 2003* (0.34)% $ 99,664 1.11% 1.06% 1.81% 70% 2003 3.88 127,757 1.11 1.59 1.79 140 2002 4.29 70,720 1.11 3.09 1.81 117 2001 7.67 27,861 1.10 4.45 1.96 87 2000 3.34 5,391 1.07 4.26 2.04 50 1999 4.32 4,931 1.07 4.22 2.25 57 * For the six month period ended November 30, 2003. All ratios for the period have been annualized. + Returns are for the period indicated and have not been annualized. Total return figures do not reflect applicable sales loads. Returns shown do not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares. (1) Per share data was calculated using the average shares method. (2) For the six month period ended May 31, 1999. All ratios for the period have been annualized. (A) On May 24, 1999, the CrestFund Maryland Municipal Bond Fund exchanged all of its assets and certain liabilities for shares of the Maryland Municipal Bond Fund. The CrestFund Maryland Municipal Bond Fund is the accounting survivor in this transaction, and as a result, its basis of accounting for assets and liabilities and its operating results for the periods prior to May 24, 1999 have been carried forward in these financial highlights. Amounts designated as "--" are either $0 or have been rounded to $0.
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS. 60 & 61
FINANCIAL HIGHLIGHTS - ------------------------------------------------------------------------------------------------------------------------------------ STI CLASSIC FIXED INCOME FUNDS FOR THE PERIOD ENDED NOVEMBER 30, 2003 (UNAUDITED) AND THE YEARS ENDED MAY 31, (UNLESS OTHERWISE INDICATED) FOR A SHARE OUTSTANDING THROUGHOUT THE PERIODS NET ASSET NET REALIZED AND DIVIDENDS TOTAL VALUE, NET UNREALIZED GAINS TOTAL FROM NET DISTRIBUTIONS DIVIDENDS NET ASSET BEGINNING INVESTMENT (LOSSES) FROM INVESTMENT FROM REALIZED AND VALUE, END OF PERIOD INCOME ON INVESTMENTS OPERATIONS INCOME CAPITAL GAINS DISTRIBUTIONS OF PERIOD --------- ---------- ---------------- ------------ ---------- ------------- ------------- ---------- STRATEGIC INCOME FUND T Shares 2003* $ 9.99 $0.28(1) $(0.03)(1) $ 0.25 $(0.28) $ -- $(0.28) $ 9.96 2003 9.80 0.61 0.20 0.81 (0.62) -- (0.62) 9.99 2002(2) 10.00 0.27 (0.20) 0.07 (0.27) -- (0.27) 9.80 A Shares 2003*(3) $ 9.93 $0.08++(1) $ 0.04++(1) $ 0.12 $(0.08) $ -- $(0.08) $ 9.97 L Shares 2003* $ 9.99 $0.26(1) $(0.03)(1) $ 0.23 $(0.26) $ -- $(0.26) $ 9.96 2003 9.80 0.57 0.19 0.76 (0.57) -- (0.57) 9.99 2002(2) 10.00 0.25 (0.20) 0.05 (0.25) -- (0.25) 9.80 U.S. GOVERNMENT SECURITIES T Shares 2003* $10.93 $0.15(1) $(0.37)(1) $(0.22) $(0.18) $ -- $(0.18) $10.53 2003 10.47 0.44 0.51 0.95 (0.46) (0.03) (0.49) 10.93 2002 10.38 0.54 0.26 0.80 (0.54) (0.17) (0.71) 10.47 2001 9.86 0.58 0.52 1.10 (0.58) -- (0.58) 10.38 2000 10.28 0.58 (0.42) 0.16 (0.58) -- (0.58) 9.86 1999 10.46 0.59 (0.18) 0.41 (0.59) -- (0.59) 10.28 A Shares 2003* $10.93 $0.13(1) $(0.38)(1) $(0.25) $(0.15) $ -- $(0.15) $10.53 2003 10.47 0.40 0.51 0.91 (0.42) (0.03) (0.45) 10.93 2002 10.38 0.50 0.26 0.76 (0.50) (0.17) (0.67) 10.47 2001 9.86 0.54 0.52 1.06 (0.54) -- (0.54) 10.38 2000 10.28 0.54 (0.42) 0.12 (0.54) -- (0.54) 9.86 1999 10.45 0.54 (0.17) 0.37 (0.54) -- (0.54) 10.28 L Shares 2003* $10.93 $0.10(1) $(0.37)(1) $(0.27) $(0.13) $ -- $(0.13) $10.53 2003 10.48 0.34 0.50 0.84 (0.36) (0.03) (0.39) 10.93 2002 10.38 0.45 0.27 0.72 (0.45) (0.17) (0.62) 10.48 2001 9.86 0.49 0.52 1.01 (0.49) -- (0.49) 10.38 2000 10.28 0.49 (0.42) 0.07 (0.49) -- (0.49) 9.86 1999 10.46 0.49 (0.18) 0.31 (0.49) -- (0.49) 10.28 VIRGINIA INTERMEDIATE MUNICIPAL BOND FUND (A) T Shares 2003* $10.68 $0.17(1) $(0.20)(1) $(0.03) $(0.17) $ -- $(0.17) $10.48 2003 10.29 0.36 0.49 0.85 (0.36) (0.10) (0.46) 10.68 2002 10.14 0.40 0.15 0.55 (0.40) -- (0.40) 10.29 2001 9.58 0.42 0.56 0.98 (0.42) -- (0.42) 10.14 2000 10.20 0.43 (0.57) (0.14) (0.43) (0.05) (0.48) 9.58 1999(4) 10.44 0.21 (0.17) 0.04 (0.21) (0.07) (0.28) 10.20 For the year ended November 30: 1998 10.31 0.45 0.17 -- (0.45) (0.04) -- 10.44 A Shares 2003* $10.68 $0.17(1) $(0.20)(1) $(0.03) $(0.17) $ -- $(0.17) $10.48 2003 10.29 0.36 0.49 0.85 (0.36) (0.10) (0.46) 10.68 2002 10.14 0.39 0.16 0.55 (0.40) -- (0.40) 10.29 2001 9.59 0.42 0.55 0.97 (0.42) -- (0.42) 10.14 2000 10.20 0.42 (0.56) (0.14) (0.42) (0.05) (0.47) 9.59 1999(4) 10.45 0.22 (0.18) 0.04 (0.22) (0.07) (0.29) 10.20 For the year ended November 30: 1998 10.31 0.46 0.17 -- (0.45) (0.04) -- 10.45 VIRGINIA MUNICIPAL BOND FUND (A) T Shares 2003* $11.07 $0.19(1) $(0.22)(1) $(0.03) $(0.19) $ -- $(0.19) $10.85 2003 10.48 0.39 0.62 1.01 (0.39) (0.03) (0.42) 11.07 2002 10.29 0.41 0.19 0.60 (0.41) -- (0.41) 10.48 2001 9.64 0.45 0.65 1.10 (0.45) -- (0.45) 10.29 2000 10.43 0.45 (0.78) (0.33) (0.45) (0.01) (0.46) 9.64 1999(4) 10.68 0.22 (0.19) 0.03 (0.22) (0.06) (0.28) 10.43 For the year ended November 30: 1998 10.44 0.47 0.27 -- (0.47) (0.03) -- 10.68 L Shares 2003* $11.13 $0.14(1) $(0.23)(1) $(0.09) $(0.14) $ -- $(0.14) $10.91 2003 10.53 0.29 0.63 0.92 (0.29) (0.03) (0.32) 11.13 2002 10.34 0.31 0.19 0.50 (0.31) -- (0.31) 10.53 2001 9.68 0.35 0.66 1.01 (0.35) -- (0.35) 10.34 2000 10.48 0.36 (0.79) (0.43) (0.36) (0.01) (0.37) 9.68 1999(4) 10.73 0.17 (0.18) (0.01) (0.18) (0.06) (0.24) 10.48 For the year ended November 30: 1998 10.48 0.37 0.28 -- (0.37) (0.03) -- 10.73 RATIO OF RATIO OF EXPENSES TO NET ASSETS, RATIO OF NET NET INVESTMENT AVERAGE NET ASSETS PORTFOLIO TOTAL END OF EXPENSES TO INCOME TO (EXCLUDING WAIVERS TURNOVER RETURN (+) PERIOD (000) VERAGE NET ASSETS AVERAGE NET ASSETS AND REIMBURSEMENTS) RATE ----------- ------------- ------------------- ------------------- ------------------- ---------- STRATEGIC INCOME FUND T Shares 2003* 2.59% $ 64,114 0.89% 5.56% 0.99% 51% 2003 8.73 61,906 0.91 6.39 1.01 52 2002(2) 0.74 43,717 0.94 6.07 1.04 43 A Shares 2003*(3) 1.18% $ 2,438 1.15% 2.46% 1.25% 51% L Shares 2003* 2.32% $157,558 1.40% 5.02% 2.00% 51% 2003 8.16 129,965 1.43 5.67 2.04 52 2002(2) 0.55 39,490 1.53 5.49 2.07 43 U.S. GOVERNMENT SECURITIES FUND T Shares 2003* (2.05)% $275,873 0.81% 2.82% 0.84% 136% 2003 9.25 258,585 0.81 4.00 0.84 150 2002 7.90 168,609 0.82 5.09 0.85 262 2001 11.41 148,666 0.81 5.66 0.85 207 2000 1.63 85,420 0.77 5.77 0.84 29 1999 3.90 102,167 0.77 5.58 0.88 19 A Shares 2003* (2.25)% $ 7,094 1.22% 2.40% 1.47% 136% 2003 8.79 9,333 1.22 3.59 1.45 150 2002 7.47 8,483 1.22 4.70 1.40 262 2001 10.95 6,617 1.21 5.21 1.83 207 2000 1.19 1,407 1.17 5.34 2.14 29 1999 3.56 2,534 1.17 5.17 1.60 19 L Shares 2003* (2.50)% $ 27,939 1.73% 1.91% 1.96% 136% 2003 8.14 39,423 1.73 3.10 1.93 150 2002 7.06 31,922 1.73 4.17 1.93 262 2001 10.45 21,617 1.72 4.71 2.04 207 2000 0.70 7,750 1.68 4.85 2.28 29 1999 2.99 11,520 1.68 4.66 2.08 19 VIRGINIA INTERMEDIATE MUNICIPAL BOND FUND (A) T Shares 2003* (0.26)% $190,784 0.75% 3.24% 0.75% 9% 2003 8.43 206,432 0.75 3.45 0.75 30 2002 5.52 191,406 0.75 3.86 0.75 33 2001 10.39 194,849 0.73 4.23 0.75 32 2000 (1.31) 202,209 0.76 4.35 0.76 18 1999(4) 0.42 240,083 0.84 4.12 1.18 19 For the year ended November 30: 1998 6.10 243,606 0.79 4.33 0.97 24 A Shares 2003* (0.28)% $ 9,274 0.79% 3.21% 1.03% 9% 2003 8.38 10,484 0.79 3.40 1.07 30 2002 5.47 7,257 0.79 3.82 1.11 33 2001 10.23 6,197 0.76 4.20 1.11 32 2000 (1.24) 6,808 0.79 4.33 0.94 18 1999(4) 0.35 7,706 0.79 4.17 0.93 19 For the year ended November 30: 1998 6.19 7,899 0.79 4.33 0.94 24 VIRGINIA MUNICIPAL BOND T Shares 2003* (0.24)% $ 46,528 0.77% 3.52% 0.77% 20% 2003 9.86 48,102 0.77 3.67 0.77 18 2002 5.90 56,586 0.77 3.90 0.77 38 2001 11.51 56,573 0.77 4.40 0.78 60 2000 (3.18) 48,980 0.74 4.53 0.79 19 1999(4) 0.27 31,939 0.76 4.20 1.30 7 For the year ended November 30: 1998 7.19 29,252 0.69 4.41 1.10 28 L Shares 2003* (0.70)% $ 13,428 1.70% 2.59% 1.86% 20% 2003 8.89 16,956 1.70 2.71 1.85 18 2002 4.93 13,428 1.70 2.97 1.88 38 2001 10.58 7,983 1.69 3.47 2.00 60 2000 (4.13) 5,367 1.65 3.61 2.08 19 1999(4) (0.16) 6,939 1.65 3.32 1.91 7 For the year ended November 30: 1998 6.24 3,697 1.64 3.46 1.92 28 * For the six month period ended November 30, 2003. All ratios for the period have been annualized. + Returns are for the period indicated and have not been annualized. Total return figures do not reflect applicable sales loads. Returns shown do not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares. ++ Ratios reflect the impact of the initial low level of average net assets associated with commencement of operations. (1) Per share data was calculated using the average shares method. (2) Commenced operations on November 30, 2001. All ratios for the period have been annualized. (3) A shares commenced operations on October 8, 2003. All ratios for the period have been annualized. (4) For the six month period ended May 31, 1999. All ratios for the period have been annualized. (A) On May 24, 1999, the CrestFund Virginia Intermediate Municipal Bond and the CrestFund Virginia Municipal Bond Funds exchanged all of their assets and certain liabilities for shares of the Virginia Intermediate Municipal Bond and the Virginia Municipal Bond Funds, respectively. The CrestFund Virginia Intermediate Municipal Bond and the CrestFund Virginia Municipal Bond Funds are the accounting survivors in this transaction, and as a result, their basis of accounting for assets and liabilities and their operating results for the periods prior to May 24, 1999 have been carried forward in these financial highlights. Amounts designated as "--" are either $0 or have been rounded to $0.
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS. 62 & 63 NOTES TO FINANCIAL STATEMENTS - -------------------------------------------------------------------------------- STI CLASSIC FIXED INCOME 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 Florida Tax-Exempt Bond Fund, Georgia Tax-Exempt Bond Fund, High Income Fund, Investment Grade Bond Fund, Investment Grade Tax-Exempt Bond Fund, Limited-Term Federal Mortgage Securities Fund, Maryland Municipal Bond Fund, Short-Term Bond Fund, Short-Term U.S. Treasury Securities Fund, Strategic Income Fund, U.S. Government Securities Fund, Virginia Intermediate Municipal Bond Fund and Virginia Municipal Bond Fund (each a "Fund" and collectively the "Funds"). The Funds may offer the following share classes: T shares (formerly Trust shares), A shares (formerly Investor 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 the financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amount of assets and liabilities, disclosure of contingent assets and liabilities at the date of the financial statements, and reported amounts of revenues and expenses during the reporting period. Actual amounts could differ from these estimates. SECURITY VALUATION -- Equity securities listed on a securities exchange, market or automated quotation system for which quotations are readily available (except for equity securities traded on NASDAQ), including equity securities traded over the counter, are valued at the last quoted sale price on the primary exchange or market (foreign or domestic) on which they are traded on valuation date (or at approximately 4:00 pm EST if an equity security's primary exchange is normally open at that time), or, if there is no such reported sale on the valuation date, at the most recent quoted bid price. For securities traded on NASDAQ, the NASDAQ Official Closing Price will be used. If available, debt securities are priced based upon valuations provided by independent, third-party pricing agents. Such values generally reflect the last reported sales price if the security is actively traded. The third-party pricing agents may also value debt securities at an evaluated bid price by employing methodologies that utilize actual market transactions, broker-supplied valuations, or other methodologies designed to identify the market value for such securities. Debt obligations with remaining maturities of sixty days or less may be valued at their amortized cost, which approximates market value. Securities for which current market quotations are not readily available, of which there are none at November 30, 2003, are valued at their fair value as determined in good faith in accordance with procedures adopted by the Board of Trustees. SECURITY TRANSACTIONS AND INVESTMENT INCOME -- Security transactions are accounted for on the date the security is purchased or sold (trade date). Interest income is recognized on an accrual basis. Costs used in determining net realized gains and losses on the sales of investment securities are those of the specific securities sold, adjusted for the accretion and amortization of purchase discounts and premiums during the respective holding period. Purchase discounts and premiums on securities held by the Funds are accreted and amortized to maturity using the effective interest method. REPURCHASE AGREEMENTS -- In connection with transactions involving repurchase agreements, a third party custodian bank takes possession of the underlying securities ("collateral"), the value of which exceeds the principal amount of the repurchase transaction, including accrued interest. In the event of default on the obligation to repurchase, each Fund has the right to liquidate the collateral and apply the proceeds in satisfaction of the obligation. In the event of default or bankruptcy by the counterparty to the agreement, realization and/or retention of the collateral or proceeds may be subject to legal proceedings. NET ASSET VALUE PER SHARE -- The net asset value per share of each Fund is calculated each business day, by dividing the total value of each Fund's assets, less liabilities, by the number of shares outstanding. The maximum offering price per share for A shares of the Florida Tax-Exempt Bond, the Georgia 64 - -------------------------------------------------------------------------------- (UNAUDITED) Tax-Exempt Bond, the High Income, the Investment Grade Bond, the Investment Grade Tax-Exempt Bond, the Strategic Income, the U.S. Government Securities, and the Virginia Intermediate Municipal Bond Funds is equal to the net asset value per shares plus a sales load of 3.75%. The maximum offering price per share for A shares of the Short-Term U.S. Treasury Securities Fund is equal to the net asset value per share plus a sales load of 1.00%. The maximum offering price per share for A shares of the Short-Term Bond Fund is equal to the net asset value per share plus a sales load of 2.00%. The maximum offering price per share for A shares of the Limited-Term Federal Mortgage Securities Fund is equal to the net asset value per share plus a sales load of 2.50%. L Shares of the Funds may be purchased at their net asset value. Shares redeemed within the first year after purchase will be subject to a contingent deferred sales charge ("CDSC") equal to 2.00% for either the net asset value of the shares at the time of purchase or the net asset value of the shares next calculated after the Fund receives the sale request, whichever is less. The CDSC will not apply to shares redeemed after such time. The Funds may charge a redemption fee up to 2% of redemption proceeds, which will automatically be paid to the Fund. SECURITIES PURCHASED ON A WHEN-ISSUED BASIS -- Delivery and payment for securities that have been purchased by a Fund on a forward commitment or when-issued basis can take place up to a month or more after the transaction date. During this period, such securities are subject to market fluctuations and the portfolio maintains, in a segregated account with its custodian, assets with a market value equal to or greater than the amount of its purchase commitments. The purchase of securities on a when-issued or forward commitment basis may increase the volatility of a Fund's net asset value if the Fund makes such investments while remaining substantially fully invested. FOREIGN CURRENCY TRANSLATION -- The books and records of the Funds are maintained in U.S. dollars. Foreign currency amounts are translated into U.S. dollars on the following bases: (i) market value of investment securities, other assets and liabilities at the current rate of exchange; and (ii) purchases and sales of investment securities, income and expenses at the relevant rates of exchange prevailing on the respective dates of such transactions. The Funds isolate the effect of fluctuations in foreign currency rates when determining the gain or loss upon sale or maturity of foreign currency denominated debt obligations for Federal income tax purposes. The Funds report gains and losses on foreign currency-related transactions as realized and unrealized gains and losses for financial reporting purposes, whereas such gains and losses are treated as ordinary income or loss for Federal income tax purposes. FORWARD FOREIGN CURRENCY CONTRACTS -- The Strategic Income Fund may enter into forward foreign currency contracts as hedges against either specific transactions, fund positions or anticipated fund positions. All commitments are "marked-to-market" daily at the applicable foreign exchange rate, and any resulting unrealized gains or losses are recorded currently. The Fund realizes gains and losses at the time forward contracts are extinguished. Unrealized gains or losses on outstanding positions in forward foreign currency contracts held at the close of the year are recognized as ordinary income or loss for Federal income tax purposes. The following forward foreign currency contracts were outstanding on November 30, 2003: IN CONTRACTS TO EXCHANGE UNREALIZED DELIVER FOR DEPRECIATION SETTLEMENT DATES (000) (000) (000) ---------------- ------------ --------- ------------ FOREIGN CURRENCY SALES 12/17/03 AUD 5,500 $3,972 $ (40) 12/17/03 CAD 6,300 4,843 (76) 12/17/03 EUR 11,500 13,778 (260) 12/17/03 GBP 3,600 6,184 (90) 12/17/03 SEK 27,500 3,637 (33) ------ $(499) ====== CURRENCY LEGEND AUD -- Australian Dollar CAD -- Canadian Dollar EUR -- Euro Dollar GBP -- British Pound SEK -- Swedish Krona TBA PURCHASE COMMITMENTS -- The Funds may enter into "TBA" (To Be Announced) purchase commitments to purchase securities for a fixed price at a future date beyond customary settlement time. TBA purchase commitments may be considered securities in themselves, and involve a risk of loss if the value of the security to be purchased declines prior to settlement date. Unsettled TBApurchase commitments are valued at the current market value of 65 NOTES TO FINANCIAL STATEMENTS (continued) - -------------------------------------------------------------------------------- STI CLASSIC FIXED INCOME FUNDS NOVEMBER 30, 2003 the underlying securities, generally according to the procedures described under "Security Valuation." MORTGAGE DOLLAR ROLLS -- The Funds may enter into mortgage dollar rolls (principally using TBA's) in which a Fund sells mortgage securities for delivery in the current month and simultaneously contracts to repurchase substantially similar securities at an agreed-upon price on a fixed date. The Funds account for such dollar rolls under the purchases and sales method and receive compensation as consideration for entering into the commitment to repurchase. The Funds must maintain liquid securities having a value not less than the repurchase price (including accrued interest) for such dollar rolls. The market value of the securities that the Funds are required to purchase may decline below the agreed upon repurchase price of those securities. The counterparty receives all principal and interest payments, including pre-payments, made in respect of a security subject to such a contract while it is with the holder. Mortgage dollar rolls may be renewed with a new purchase and repurchase price and a cash settlement made on settlement date without physical delivery of the securities subject to the contract. The Funds engage in dollar rolls for the purpose of enhancing its yield, principally by earning a negotiated fee. EXPENSES -- Expenses that are directly related to a specific Fund are charged to that Fund. Class specific expenses, such as distribution and transfer agent fees, are borne by that class. Other operating expenses of the Trust are pro-rated to the Funds on the basis of relative net assets. Fund expenses are pro-rated to the respective classes on the basis of relative net assets. 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 for 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 May 29, 1992, and last amended September 4, 2003. Under terms of the amended agreement, the Funds are charged the following annual fees based upon average daily net assets: MAXIMUM ANNUAL ADVISORY FEE --------- Florida Tax-Exempt Bond Fund .......................................... 0.65% Georgia Tax-Exempt Bond Fund .......................................... 0.65% HighIncome Fund . ................... 0.80% Investment Grade Bond Fund ............................................ 0.74% Investment Grade Tax-Exempt Bond Fund ................................. 0.74% Limited-Term Federal Mortgage Securities Fund ......................... 0.65% Maryland Municipal Bond Fund .......................................... 0.65% Short-Term Bond Fund .................................................. 0.65% Short-Term U.S. Treasury Securities Fund .............................. 0.65% Strategic Income Fund ................................................. 0.85% U.S. Government Securities Fund ....................................... 0.74% Virginia Intermediate Municipal Bond Fund ............................. 0.65% Virginia Municipal Bond Fund . ................... 0.65% The Investment Adviser has voluntarily agreed to waive all or a portion of its fees (and to reimburse Fund expenses) in order to limit operating expenses. Fee waivers and expense reimbursements are voluntary and may be terminated at any time. ADMINISTRATION AGREEMENT -- The Trust and SEI Investments Global Funds Services (the "Administrator") are parties to an Administration Agreement dated May 29, 1995, as amended November 19, 1997 and March 1, 1999, under which the Administrator provides administrative services for an annual fee (expressed as a percentage of the combined average daily net assets of the Trust and STI Classic Variable Trust) of: 0.12% up to $1 billion, 0.09% on the next $4 billion, 0.07% on the next $3 billion, 0.065% on the next $2 billion and 0.06% for over $10 billion. DISTRIBUTION AGREEMENT -- The Trust and SEI Investments Distribution Co. (the "Distributor") are parties to a Distribution Agreement dated November 21, 1995. The Distributor will receive no fees for its distribution services under the agreement for the T Shares of any Fund. With respect to the A Shares and L Shares, the 66 - -------------------------------------------------------------------------------- (UNAUDITED) Distributor receives amounts, pursuant to a Distribution Plan and (in the case of L Shares) a Distribution and Service Plan, as outlined in the table below. MAXIMUM L SHARE DISTRI- MAXIMUM BUTION A SHARE AND DISTRI- SERVICE BUTION FEE FEE ---------- ------- Florida Tax-Exempt Bond Fund .......................... 0.18% 1.00% Georgia Tax-Exempt Bond Fund .......................... 0.18% 1.00% HighIncome Fund ....................................... 0.30% 1.00% Investment Grade Bond Fund ............................ 0.43% 1.00% Investment Grade Tax-Exempt Bond Fund ................. 0.43% 1.00% Limited-Term Federal Mortgage Securities Fund ......... 0.23% 1.00% Maryland Municipal Bond Fund .......................... -- 1.00% Short-Term Bond Fund .................................. 0.23% 1.00% Short-Term U.S. Treasury Securities Fund .............. 0.18% 1.00% Strategic Income Fund ................................. 0.35% 1.00% U.S. Government Securities Fund ....................... 0.38% 1.00% Virginia Intermediate Municipal Bond Fund ............. 0.15% -- Virginia Municipal Bond Fund .......................... -- 1.00% 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. TRANSFER AGENCY AGREEMENTS -- The Trust and Federated Services Company are parties to a Transfer Agency servicing agreement dated May 14, 1994, as amended April 16, 2003, under which Federated Services Company provides transfer agency services to the Trust. The Trust and SunTrust Securities Inc. ("STS"), a wholly- owned subsidiary of SunTrust Banks, Inc., are parties to an agreement under which STS provides certain transfer agency account activity processing and servicing. The transfer agency service fees are based upon a monthly per account charge for the total shareholder accounts at the Trust's transfer agent. CUSTODIAN AGREEMENTS -- SunTrust Bank acts as custodian for all of the Funds except the Strategic Income Fund, which utilizes Brown Brothers Harriman & Co. as custodian. Custodians are paid on the basis of net assets and transaction costs of the Funds. The custodians play no role in determining the investment policies of the Trust or which securities are to be purchased or sold in the Funds. OTHER -- Certain officers of the Trust are also officers of the 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 the Distributor to act as an agent in placing repurchase agreements for the Trust. As of October 24, 2003, this agreement was discontinued. For the six months ended November 30, 2003, the following Funds paid the Distributor through a reduction in the yield earned by the Funds on those repurchase agreements: FEES -------- Florida Tax-Exempt Fund .............................................. $ 888 High Income Fund ..................................................... 3 Investment Grade Bond Fund ........................................... 3,180 Investment Grade Tax-Exempt Bond Fund ................................ 888 Limited-Term Federal Mortgage Securities Fund ........................ 12,842 U.S. Government Securities Fund ...................................... 2,358 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 ------- Florida Tax-Exempt Bond Fund .......................................... $ 54 Investment Grade Tax-Exempt Bond Fund ................................. 151 Limited-Term Federal Mortgage Securities Fund ......................... 5,854 U.S. Government Securities Fund ....................................... 959 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 months ended November 30, 2003, were as follows: PURCHASES SALES (000) (000) --------- --------- Florida Tax-Exempt Bond Fund ............................. $ 48,752 $ 61,600 Georgia Tax-Exempt Bond Fund ............................. 57,303 54,116 High Income Fund ......................................... 47,216 31,517 Investment Grade Bond Fund ............................... 217,787 292,830 Investment Grade Tax-Exempt Bond Fund .................... 241,794 244,020 Limited-Term Federal Mortgage Securities Fund ............ 8,978 -- Maryland Municipal Bond Fund ............................. 1,419 8,067 Short-Term Bond Fund ..................................... 43,609 45,013 Strategic Income Fund .................................... 50,496 45,330 U.S. Government Securities Fund .......................... 20,692 1,062 Virginia Intermediate Municipal Bond Fund ................ 16,944 27,397 Virginia Municipal Bond Fund ............................. 11,216 13,521 The cost of purchases and proceeds from sales of U.S. Government securities were: PURCHASES SALES (000) (000) --------- --------- Investment Grade Bond Fund ............................... $342,173 $360,922 Limited-Term Federal Mortgage Securities Fund ............ 406,505 335,401 Short-Term Bond Fund ..................................... 43,081 32,524 Short-Term U.S. Treasury Securiities Fund ................ 154,981 162,140 Strategic Income Fund .................................... 89,508 62,779 U.S. Government Securities Fund .......................... 380,835 387,050 67 NOTES TO FINANCIAL STATEMENTS (continued) - -------------------------------------------------------------------------------- STI CLASSIC FIXED INCOME FUNDS NOVEMBER 30, 2003 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. The Funds may be subject to taxes imposed by countries in which they invest with respect to their investments in issuers existing or operating in such countries. Such taxes are generally based on income earned. The Funds accrue such taxes when the related income is earned. The timing and characterization of certain income and capital gains distributions are determined annually in accordance with Federal tax regulations, which may differ from accounting principles generally accepted in the United States of America. As a result, net investment income (loss) and net realized gain (loss) on investment transactions for a reporting period may differ significantly from distributions during such period. These book/tax differences may be temporary or permanent. To the extent these differences are permanent in nature, they are charged or credited to paid-in-capital, undistributed net investment income (loss), or accumulated net realized gain (loss), as appropriate, in the period that the differences arise. Post-October loss represents losses realized on investments from November 1, 2002, through November 30, 2003 that, in accordance with Federal income tax regulations, the Fund may elect to defer and treat as having arisen in the following fiscal year. For tax purposes, the losses in the Funds can be carried forward for a maximum of eight years to offset any future net realized capital gains. The capital loss breakdown, as of May 31, 2003, is as follows (000): EXPIRES EXPIRES EXPIRES EXPIRES EXPIRES EXPIRES 2006 2007 2008 2009 2010 2011 ------- ------- ------- ------- ------- ------- Georgia Tax-Exempt Bond Fund $ -- $ -- $ -- $ 600 $-- $ -- High Income Fund -- 17 707 21 -- 352 Investment Grade Bond Fund -- -- -- 30,672 -- -- Short-Term Bond Fund 271 -- 946 987 -- 9,217 At November 30, 2003, the total cost of securities for Federal income tax purposes and the aggregate gross unrealized appreciation and depreciation for securities held by the Funds were as follows: AGGREGATE AGGREGATE FEDERAL GROSS GROSS NET TAX UNREALIZED UNREALIZED UNREALIZED COST APPRECIATION DEPRECIATION APPRECIATION (000) (000) (000) (000) -------- ------------ ------------ ------------ Florida Tax-Exempt Bond Fund $199,293 $ 6,437 $ (292) $6,145 Georgia Tax-Exempt Bond Fund 117,683 6,017 (25) 5,992 High Income Fund 199,152 10,904 (3,022) 7,882 Investment Grade Bond Fund 920,996 13,426 (4,488) 8,938 Investment Grade Tax-Exempt Bond Fund 267,951 6,492 (279) 6,213 Limited-Term Federal Mortgage Securities Fund 658,428 4,461 (3,671) 790 Maryland Municipal Bond Fund 50,591 2,187 (36) 2,151 Short-Term Bond Fund 369,338 4,396 (535) 3,861 Short-Term U.S. Treasury Securities Fund 218,629 717 (263) 454 Strategic Income Fund 227,061 7,179 (3,691) 3,488 U.S. Government Securities Fund 336,334 3,512 (1,709) 1,803 Virginia Intermediate Municipal Bond Fund 191,526 8,174 (53) 8,121 Virginia Municipal Bond Fund 57,315 3,185 (26) 3,159 6. Concentrations/Risks: The prices of the Funds' fixed income securities respond to economic developments, particularly interest rate changes, as well as to perceptions about the creditworthiness of individual issuers, including governments. Generally, the Funds' fixed income securities will decrease in value if interest rates rise and vice versa, and the volatility of lower-rated securities is even greater than that of higher-rated securities. Also, longer-term securities are generally more volatile, so the average maturity or duration of these securities affects risk. The High Income and Strategic Income Funds invest in high yield corporate, government, and other debt instruments of U.S. and non-U.S. issuers. High yield securities involve greater risk of default or downgrade and are more volatile than investment grade securities. 68 - -------------------------------------------------------------------------------- (UNAUDITED) The High Income and Strategic Income Funds' investment in foreign countries poses additional risks since political and economic events unique to a country or region will affect those markets and their issuers. In addition, investments in foreign countries are generally denominated in a foreign currency. As a result, changes in the value of those currencies compared to the U.S. dollar may affect the value of a Fund's investment. The Florida Tax-Exempt Bond, Georgia Tax-Exempt Bond, Maryland Municipal Bond, Virginia Intermediate Municipal Bond, and Virginia Municipal Bond Funds' concentrations of investments in securities of issuers located in a specific region subjects each Fund to the economic and government policies of that region. The Investment Grade Bond, Limited-Term Federal Mortgage Securities, Short-Term Bond, and U.S. Government Securities Funds invest 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 a fund's average duration. 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. 69
NOTES TO FINANCIAL STATEMENTS (continued) - ------------------------------------------------------------------------------------------------------------------------------------ STI CLASSIC FIXED INCOME FUNDS NOVEMBER 30, 2003 7. Capital Share Transactions: Capital Share Transactions for the Funds were as follows (000): FLORIDA TAX-EXEMPT GEORGIA TAX-EXEMPT BOND FUND BOND FUND HIGH INCOME FUND (1) --------------------- --------------------- --------------------- 06/01/03- 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 --------- --------- --------- --------- --------- --------- T Shares: Shares Issued ................................... 4,223 3,571 1,027 2,200 2,538 11,360 Shares Issued in Lieu of Cash Distributions ..... 24 83 26 54 197 336 Shares Redeemed ................................. (1,870) (2,081) (538) (2,049) (4,619) (1,571) -------- -------- ------- -------- -------- -------- Net T Share Transactions .......................... 2,377 1,573 515 205 (1,884) 10,125 -------- -------- ------- -------- -------- -------- A Shares: Shares Issued ................................... 146 875 94 42 142 -- Shares Issued in Lieu of Cash Distributions ..... 4 13 2 4 -- -- Shares Redeemed ................................. (333) (455) (77) (80) (5) -- -------- -------- ------- -------- -------- -------- Net A Share Transactions .......................... (183) 433 19 (34) 137 -- -------- -------- ------- -------- -------- -------- L Shares: Shares Issued ................................... 348 2,231 201 478 4,168 4,824 Shares Issued in Lieu of Cash Distributions ..... 26 75 18 34 255 353 Shares Redeemed ................................. (1,127) (866) (164) (375) (1,787) (2,641) -------- -------- ------- -------- -------- -------- Net L Share Transactions .......................... (753) 1,440 55 137 2,636 2,536 -------- -------- ------- -------- -------- -------- Net Change in Capital Shares ...................... 1,441 3,446 589 308 889 12,661 ======== ======== ======= ======== ======== ======== SHORT-TERM SHORT-TERM U.S. TREASURY STRATEGIC BOND FUND SECURITIES FUND INCOME FUND (2) --------------------- --------------------- --------------------- 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 --------- --------- --------- --------- --------- --------- T Shares: Shares Issued .................................. 6,343 11,842 902 4,134 1,480 3,513 Shares Issued in Lieu of Cash Distributions .... 124 291 14 63 33 63 Shares Redeemed ................................ (6,345) (12,539) (2,573) (2,965) (1,270) (1,840) -------- -------- -------- -------- -------- -------- Net T Share Transactions ......................... 122 (406) (1,657) 1,232 243 1,736 -------- -------- -------- -------- -------- -------- A Shares: Shares Issued .................................. 461 780 539 1,894 253 -- Shares Issued in Lieu of Cash Distributions .... 7 11 9 21 -- -- Shares Redeemed ................................ (261) (801) (408) (876) (8) -- -------- -------- -------- -------- -------- -------- Net A Share Transactions ......................... 207 (10) 140 1,039 245 -- -------- -------- -------- -------- -------- -------- L Shares: Shares Issued .................................. 683 1,882 1,498 9,251 5,790 10,641 Shares Issued in Lieu of Cash Distributions .... 25 60 50 200 278 273 Shares Redeemed ................................ (909) (1,333) (4,185) (4,041) (3,255) (1,940) -------- -------- -------- -------- -------- -------- Net L Share Transactions ......................... (201) 609 (2,637) 5,410 2,813 8,974 -------- -------- -------- -------- -------- -------- Net Change in Capital Shares ..................... 128 193 (4,154) 7,681 3,301 10,710 ======== ======== ======== ======== ======== ======== INVESTMENT GRADE INVESTMENT GRADE TAX- BOND FUND EXEMPT BOND 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 --------- --------- --------- --------- T Shares: Shares Issued ................................... 6,622 18,197 3,736 5,507 Shares Issued in Lieu of Cash Distributions ..... 551 1,450 29 300 Shares Redeemed ................................. (17,526) (31,144) (2,350) (3,260) -------- -------- -------- -------- Net T Share Transactions .......................... (10,353) (11,497) 1,415 2,547 -------- -------- -------- -------- A Shares: Shares Issued ................................... 670 2,253 209 341 Shares Issued in Lieu of Cash Distributions ..... 44 92 14 87 Shares Redeemed ................................. (693) (1,192) (270) (383) -------- -------- -------- -------- Net A Share Transactions .......................... 21 1,153 (47) 45 -------- -------- -------- -------- L Shares: Shares Issued ................................... 519 2,045 281 1,177 Shares Issued in Lieu of Cash Distributions ..... 37 104 17 115 Shares Redeemed ................................ (1,028) (2,229) (562) (696) -------- -------- -------- -------- Net L Share Transactions .......................... (472) (80) (264) 596 -------- -------- -------- -------- Net Change in Capital Shares ...................... (10,804) (10,424) 1,104 3,188 ======== ======== ======== ======== LIMITED-TERM FEDERAL MARYLAND MUNICIPAL MORTGAGE SECURITIES FUND BOND 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 --------- --------- --------- --------- T Shares: Shares Issued .................................... 20,123 21,614 257 1,826 Shares Issued in Lieu of Cash Distributions ...... 184 373 13 28 Shares Redeemed .................................. (5,137) (7,664) (384) (2,329) -------- -------- -------- -------- Net T Share Transactions ........................... 15,170 14,323 (114) (475) -------- -------- -------- -------- A Shares: Shares Issued .................................... 435 1,808 -- -- Shares Issued in Lieu of Cash Distributions ...... 13 22 -- -- Shares Redeemed .................................. (658) (690) -- -- -------- -------- -------- -------- Net A Share Transactions ........................... (210) 1,140 -- -- -------- -------- -------- -------- L Shares: Shares Issued .................................... 2,161 15,321 320 886 Shares Issued in Lieu of Cash Distributions ...... 124 225 26 56 Shares Redeemed .................................. (6,090) (1,396) (726) (491) -------- -------- -------- -------- Net L Share Transactions ........................... (3,805) 14,150 (380) 451 -------- -------- -------- -------- Net Change in Capital Shares ....................... 11,155 29,613 (494) (24) ======== ======== ======== ======== U.S. GOVERNMENT SECURITIES FUND VIRGINIA INTERMEDIATE MUNICIPAL BOND 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 --------- --------- --------- --------- Shares Issued .................................. 6,485 12,606 808 2,707 Shares Issued in Lieu of Cash Distributions .... 134 314 10 159 Shares Redeemed ................................ (4,081) (5,359) (1,941) (2,131) -------- -------- -------- -------- Net T Share Transactions ......................... 2,538 7,561 (1,123) 735 -------- -------- -------- -------- A Shares: Shares Issued .................................. 791 1,551 187 389 Shares Issued in Lieu of Cash Distributions .... 10 24 12 24 Shares Redeemed ................................ (981) (1,531) (296) (136) -------- -------- -------- -------- Net A Share Transactions ......................... (180) 44 (97) 277 -------- -------- -------- -------- L Shares: Shares Issued .................................. 386 1,819 -- -- Shares Issued in Lieu of Cash Distributions .... 31 107 -- -- Shares Redeemed ................................ (1,369) (1,367) -- -- -------- -------- -------- -------- Net L Share Transactions ......................... (952) 559 -- -- -------- -------- -------- -------- Net Change in Capital Shares ..................... 1,406 8,164 (1,220) 1,012 ======== ======== ======== ======== VIRGINIA MUNICIPAL BOND FUND ----------------------------- 06/01/03- 06/01/02- 11/30/03 05/31/03 --------- --------- T Shares: Shares Issued ................................... 437 785 Shares Issued in Lieu of Cash Distributions ..... 3 17 Shares Redeemed ................................. (497) (1,061) ------- -------- Net T Share Transactions .......................... (57) (1,055) ------- -------- A Shares: Shares Issued ................................... -- -- Shares Issued in Lieu of Cash Distributions ..... -- -- Shares Redeemed ................................. -- -- ------- -------- Net A Share Transactions .......................... -- -- ------- -------- L Shares: Shares Issued ................................... 161 593 Shares Issued in Lieu of Cash Distributions ..... 13 29 Shares Redeemed ................................. (467) (373) ------- -------- Net L Share Transactions .......................... (293) 249 ------- -------- Net Change in Capital Shares ...................... (350) (806) ======= ===-====
(1) A SHARES COMMENCED OPERATIONS ON OCTOBER 27, 2003. (2) A SHARES COMMENCED OPERATIONS ON OCTOBER 8, 2003. 70 & 71 NOTES TO FINANCIAL STATEMENTS (concluded) - -------------------------------------------------------------------------------- STI CLASSIC FIXED INCOME FUNDS NOVEMBER 30, 2003 (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 331/3% of the total asset value of the Fund (including the loan collateral). No Fund will lend portfolio securities to its investment adviser, sub-adviser or their affiliates unless it has applied for and received specific authority to do so from the 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. 72 INVESTMENT ADVISER Trusco Capital Management, Inc. STI Classic Funds are not deposits, are not insured or guaranteed by the FDIC or any other government agency, and are not endorsed by and do not constitute obligations of SunTrust Banks, Inc. or any other of its affiliates. Investment in the Funds involves risk, including the possible loss of principal. There is no guarantee that any STI Classic Fund will achieve its investment objective. The STI Classic Funds are advised by an affiliate of SunTrust Banks, Inc. DISTRIBUTOR SEI Investments Distribution Co. This information must be preceded or accompanied by a current prospectus for each Fund described. STI-SA-003-0400 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-----