-----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, Wcq7gjl8OKb+TlqAu51erTomHMbc4rsjQRyCCL7mTjnSmrJVjA/dgR8+xsBC0LEw lJy0zp4rqeTTD3Zt2zVMEw== 0000935069-04-001044.txt : 20040809 0000935069-04-001044.hdr.sgml : 20040809 20040809131529 ACCESSION NUMBER: 0000935069-04-001044 CONFORMED SUBMISSION TYPE: N-CSR PUBLIC DOCUMENT COUNT: 6 CONFORMED PERIOD OF REPORT: 20040531 FILED AS OF DATE: 20040809 EFFECTIVENESS DATE: 20040809 FILER: COMPANY DATA: COMPANY CONFORMED NAME: STI CLASSIC FUNDS CENTRAL INDEX KEY: 0000883939 IRS NUMBER: 232678674 STATE OF INCORPORATION: MA FISCAL YEAR END: 0531 FILING VALUES: FORM TYPE: N-CSR SEC ACT: 1940 Act SEC FILE NUMBER: 811-06557 FILM NUMBER: 04960396 BUSINESS ADDRESS: STREET 1: 2 OLIVER STREET CITY: BOSTON STATE: MA ZIP: 02109 BUSINESS PHONE: 6109896602 MAIL ADDRESS: STREET 1: 530 E SWEDESFORD ROAD CITY: WAYNE STATE: PA ZIP: 19087-1693 N-CSR 1 stimmretailcombar5_04.txt STI CL MM RETAIL AR 5_04 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 811-06557 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: MAY 31, 2004 ITEM 1. REPORTS TO STOCKHOLDERS. ANNUAL ................................................................................. FINANCIAL REPORT ................................................................................. STI CLASSIC FUNDS ................................................................................. A Family of Mutual Funds ................................................................................. PRIME QUALITY MONEY MARKET FUND TAX-EXEMPT MONEY MARKET FUND U.S. GOVERNMENT SECURITIES MONEY MARKET FUND U.S. TREASURY MONEY MARKET FUND VIRGINIA TAX-FREE MONEY MARKET FUND MAY 31, 2004 [LOGO OMITTED - STI CLASSIC FUNDS] Dear Valued STI Classic Funds Shareholder: For investors, the year ending May 31, 2004 was decidedly brighter and a welcome change from the post-bubble weakness that began in early 2000. The economy grew at an above-average pace, helped significantly by lower interest rates and tax rebates. This in turn lifted corporate profits and equity prices, both domestic and international. However, bond yields bottomed during the year in response to the risks associated with a strengthening economy. I will expand on these developments in the following paragraphs and share Trusco Capital's outlook. Generally, after a period of vulnerability, the character of the economic expansion and the markets appear poised to shift to a more "traditional," sustained, cyclical nature, which historically has been favorable for the equity markets. Economic growth during the past year was very strong, statistically speaking. Available data showed inflation-adjusted growth of nearly 5% on a year-over-year basis, matching the best periods of the record expansion of the 1990s. However, much of the growth could be traced directly to the massive and simultaneous stimulus from federal tax cuts/rebates and low mortgage/bond yields. While this stimulus was an essential element to increased spending, the expansion was not yet self-sustaining, and so was viewed as vulnerable to setbacks. Sales growth improved as did corporate profits, but the rebound in earnings was due in large part to corporate self-help measures that were manifested in improved productivity. A resumption of job growth was seen as the litmus test to sustainability. This potential vulnerability, combined with low core inflation, kept Federal Reserve interest rate policy accommodative during the year, with the key Fed Funds rate holding at 1%; the lowest level since 1958. The S&P 500 rose 18.3% on a total return basis in the year ended May 31, 2004, with the bulk of the rise concentrated in the third and fourth quarters of last year. Mid-cap and small-cap stocks were even stronger, with the S&P 400 MidCap index posting a 26.7% gain and the Russell 2000 small-cap index rising 30.3%. On the international front, the MSCI EAFE index gained 33.2%. Cyclically sensitive sectors led the market as did those closely linked to commodities. The materials, energy, industrials, and information technology sectors each rose more than 20% during the twelve months ended May 31, while consumer discretionary and financial stocks also posted above market returns. The above average gains in the commodity price sensitive sectors helped the Value style generally outperform the Growth style for the period. A final theme that dominated market performance during the year was a sharp rebound in stocks with no earnings and/or weak financial quality. This frustrated investors investing in higher quality companies with strong balance sheets and visible earnings growth. In the fixed-income markets bond yields moved higher over the course of the twelve months, though intra-year volatility was significant. The yield on the 10-year Treasury note fell to as low as 3.11% in June 2003 and rose as high as 4.86% just before the close of the fiscal year in May. However, the steady Federal Reserve policy kept short-term rates constant causing the yield differential between long and short maturity bonds to rise to near record levels. The Lehman Aggregate Bond Index fell a modest 0.4% during the year ending May 31, 2004, though longer-term bonds such as the 10-year Treasury note were considerably weaker falling over 5%. The stronger economy helped credit-sensitive sectors such as High Yield perform well, while Treasury securities generally underperformed. As we look ahead the economic expansion looks both solid and sustainable, and is capable of supporting further gains in corporate profits and in equity prices. A key reason for this was the resumption of job growth in 2004, following an uncomfortably long drought which kept interest rate policy stimulative. However the pace of growth is likely to slow as the stimulative benefits of tax rebates and mortgage financing subside. Inflation pressures will 1 increase from their historically low level, putting pressure on the Federal Reserve to begin raising interest rates following a protracted period of stimulus. Bond yields are likely to rise further as the Fed starts to apply monetary restraint, but the pace of rate hikes is expected to be gradual as long as inflation pressures do not escalate sharply. We remain cyclically overweight in stocks within our asset allocation mix, but recognize volatility could increase once the Fed begins raising interest rates. Adherence to investment disciplines and greater price sensitivity on stocks will be much more important in the years ahead, as I have mentioned before, particularly if there is a meaningful rise in interest rates. The cornerstone of our investment philosophy is diversification and execution of the disciplined investment process by experienced investment professionals. I encourage you to read through the remainder of the report, as it contains comments from our fund managers on specific investment sectors and styles. Trusco has excellent fund managers and I am sure you will find their insights valuable. In closing, I want to take this opportunity to thank you for investing in the STI Classic Funds. We value the relationship we have with you and look forward to expanding it in the coming year through continued investment excellence and a broader array of investment alternatives. Sincerely, /s/Douglas S. Phillips, CFA Douglas S. Phillips, CFA Chief Investment Officer 2 STI CLASSIC PRIME QUALITY MONEY MARKET FUND ------------------------------------------- The investment objective of the STI Classic Prime Quality Money Market Fund (the "Fund") is to provide as high a level of current income as is consistent with the preservation of capital and liquidity by investing exclusively in high quality money market instruments. The investment discipline, which we use in managing the Fund, emphasizes adding incremental value through yield curve, sector and credit analysis. Investments are made in those sectors, credits and segments of the yield curve within the universe of money market eligible securities, which offer the most attractive risk/reward trade-off and current yield. The maturity structure and average maturity of the Fund are actively managed to maximize the yield of the Fund based on the current market rates and conditions and our market outlook. The Federal Reserve maintained the Funds Rate at a 45-year low of 1.00% since June of last year. The Federal Reserve Open Market Committee is expected to raise the Federal Funds Rate and Discount Rate at its upcoming June 30th meeting. In anticipation of this action interest rates have recently risen from historical lows. Our outlook is that the Federal Reserve will raise interest rates at the upcoming meeting as the economy continues to improve and to guard against an unexpected rise in inflation. We do expect the Federal Reserve to transition monetary policy from an accommodative stance to neutral over the balance of the year. With this in mind the portfolio has been structured to benefit from a rising rate policy by the Federal Reserve. The Fund was able to meet its objective and was able to provide a very competitive return and yield as compared to its peer money market funds during the year ending May 31, 2004. The Fund's T Shares had a one-year return of .52% as compared to the iMoneyNet, Inc. MONEY FUND REPORT AVERAGES (TM) - First Tier return of .37%. /s/David S. Yealy David S. Yealy Managing Director STI CLASSIC TAX-EXEMPT MONEY MARKET FUND ---------------------------------------- The investment objective of the STI Classic Tax Exempt Money Market Fund (the "Fund") is to provide as high a level of tax exempt current income as is consistent with the preservation of capital and liquidity by investing exclusively in high quality tax exempt money market instruments. The investment discipline, which we use in managing the Fund, emphasizes adding incremental value through yield curve, sector and credit analysis. Investments are made in those sectors, credits and segments of the yield curve within the universe of money market eligible securities, which offer the most attractive risk/reward trade-off and current yield. The maturity structure and average maturity of the Fund are actively managed to maximize the yield of the Fund based on the current market rates and conditions and our market outlook. The Federal Reserve Open Market Committee is expected to raise interest rates at its upcoming June 30th meeting. In anticipation of this action interest rates have recently risen from historical lows. Over the last year the Federal Reserve has maintained the Funds Rate at a 45-year low of 1.00%. Our outlook is that the Federal Reserve will raise interest rates at the upcoming meeting as the economy continues to improve and to guard against an unexpected rise in inflation. We do expect the Federal Reserve to transition monetary policy from an accommodative stance to neutral over the balance of the year. With this in mind the portfolio has been structured to benefit from a rising rate policy by the Federal Reserve. The Fund was able to meet its objective and was able to provide a very competitive return and yield as compared to its peer money market funds during the year ending May 31, 2004. The Fund's T Shares had a one-year return of .48% as compared to the iMoneyNet, Inc. MONEY FUND REPORT AVERAGES (TM) - Tax-Free return of .38% /s/Robert S. Bowman, CFA Robert S. Bowman, CFA Managing Director 3 STI CLASSIC U.S. GOVERNMENT SECURITIES MONEY MARKET FUND -------------------------------------------------------- The investment objective of the STI Classic U.S. Government Securities Money Market Fund (the "Fund") is to provide as high a level of current income as is consistent with the preservation of capital and liquidity by investing exclusively in money market eligible securities. Eligible securities include U.S. Government Agency securities and repurchase agreements collateralized by U.S. Government Agency obligations. The investment discipline, which we use in managing the Fund, emphasizes adding incremental value through yield curve analysis. The maturity structure and average maturity of the Fund are actively managed to maximize the yield of the Fund based on the current market rates and conditions and our market outlook. The Federal Reserve Open Market Committee is expected to raise interest rates at its upcoming June 30th meeting. In anticipation of this action interest rates have recently risen from historical lows. Over the last year the Federal Reserve has maintained the Funds Rate at a 45-year low of 1.00%. Our outlook is that the Federal Reserve will raise interest rates at the upcoming meeting as the economy continues to improve and to guard against an unexpected rise in inflation. We do expect the Federal Reserve to transition monetary policy from an accommodative stance to neutral over the balance of the year. With this in mind the portfolio has been structured to benefit from a rising rate policy by the Federal Reserve. The Fund was able to meet its objective and was able to provide a very competitive return and yield as compared to its peer money market funds during the year ending May 31, 2004. The Fund's T Shares had a one-year return of .43% as compared to the iMoneyNet, Inc. MONEY FUND REPORT AVERAGES (TM) - U.S. Government & Agency return of .37%. /s/Robert S. Bowman, CFA Robert S. Bowman, CFA Managing Director STI CLASSIC U.S. TREASURY MONEY MARKET FUND ------------------------------------------- The investment objective of the STI Classic U.S. Treasury Securities Money Market Fund (the "Fund") is to provide as high a level of current income as is consistent with the preservation of capital and liquidity by investing exclusively in money market eligible securities. Eligible securities include U.S. Treasury securities and repurchase agreements collateralized by U.S. Treasury obligations. The investment discipline, which we use in managing the Fund, emphasizes adding incremental value through yield curve analysis. The maturity structure and average maturity of the Fund are actively managed to maximize the yield of the Fund based on the current market rates and conditions and our market outlook. The Federal Reserve maintained the Funds Rate at a 45-year low of 1.00% since June of last year. The Federal Reserve Open Market Committee is expected to raise the Federal Funds Rate and Discount Rate at its upcoming June 30th meeting. In anticipation of this action interest rates have recently risen from historical lows. Our outlook is that the Federal Reserve will raise interest rates at the upcoming meeting as the economy continues to improve and to guard against an unexpected rise in inflation. We do expect the Federal Reserve to transition monetary policy from an accommodative stance to neutral over the balance of the year. With this in mind the portfolio has been structured to benefit from a rising rate policy by the Federal Reserve. The Fund was able to meet its objective and was able to provide a competitive return and yield as compared to its peer money market funds during the year ending May 31, 2004. The Fund's T Shares had a one-year return of .37% as compared to the iMoneyNet, Inc. MONEY FUND REPORT AVERAGES (TM) - U.S. Treasury & Repo return of .36%. /s/David S. Yealy David S. Yealy Managing Director 4 STI CLASSIC VIRGINIA TAX-FREE MONEY MARKET FUND ----------------------------------------------- The investment objective of the STI Classic Virginia Tax-Free Money Market Fund (the "Fund") is to provide a high level of Virginia tax exempt current income that is consistent with the preservation of capital and liquidly by investing exclusively in high quality tax-exempt money market instruments. The investment discipline used in managing the Fund emphasizes adding incremental value through yield curve, sector and credit analysis. Investments are made in those sectors, credits and segments of the yield curve within the universe of money market eligible securities, which offer the attractive balance between risk and reward and current yield. The maturity structure and average maturity of the Fund are actively managed to maximize the Fund's yield based on current market rates, conditions and outlook. The Federal Reserve Open Market Committee is expected to raise interest rates at its upcoming June 30th meeting. In anticipation of this action interest rates have recently risen from historical lows. Over the last year the Federal Reserve has maintained the Funds Rate at a 45 year low of 1.00%. Our outlook is that the Federal Reserve will raise interest rates at the upcoming meeting as the economy continues to improve and to guard against an unexpected rise in inflation. We do expect the Federal Reserve to transition monetary policy from an accommodative stance to neutral over the balance of the year. With this in mind the portfolio has been structured to benefit from a rising rate policy by the Federal Reserve. The Fund was able to meet its objective and to provide a very competitive return and yield as compared to its peer money market funds during the year ending May 31, 2004. The Fund's T Shares had a one-year return of .56% as compared to the iMoneyNet, Inc. MONEY FUND REPORT AVERAGES (TM) - Tax-Free return of .38%. /s/Robert S. Bowman, CFA Robert S. Bowman, CFA Managing Director 5 STATEMENT OF NET ASSETS - -------------------------------------------------------------------------------- STI CLASSIC FUNDS MAY 31, 2004 PRIME QUALITY MONEY MARKET FUND - ---------------------------------------------------------- FACE AMOUNT (000) VALUE (000) - ---------------------------------------------------------- CORPORATE OBLIGATIONS (45.2%) ASSET BACKED (8.7%) Beta Finance, MTN (A) (C) (D) 1.216%, 09/15/04 $ 25,000 $ 24,999 1.153%, 05/18/05 122,000 121,971 Dorada Finance, MTN (A) (C) (D) 1.216%, 09/13/04 125,000 125,000 Sigma Finance, MTN (A) (C) (D) 1.055%, 07/12/04 20,000 20,000 1.206%, 09/01/04 50,000 49,998 1.070%, 11/15/04 50,000 49,999 Sigma Finance, Ser 1, MTN (A) (C) (D) 1.226%, 01/12/05 50,000 49,995 Sigma Finance, Ser 1, MTN (C) (D) 1.055%, 07/01/04 25,000 25,000 ---------- 466,962 ---------- AUTO FINANCE (2.5%) BMW US Capital (C) (D) 4.231%, 06/07/05 100,000 101,974 Toyota Motor Credit, MTN (C) (D) 5.030%, 07/16/04 1,250 1,256 1.145%, 03/17/05 1,000 1,000 Volkswagen Credit, MTN (A) (C) (D) 1.250%, 06/11/04 28,000 28,001 ---------- 132,231 ---------- BANKS (6.2%) Bank of America 7.875%, 05/16/05 12,027 12,730 Bank of New York (A) (C) (D) 1.090%, 05/27/05 25,000 25,000 - ---------------------------------------------------------- FACE AMOUNT (000) VALUE (000) - ---------------------------------------------------------- BANKS -- CONTINUED Bayerische Landesbank 5.000%, 07/20/04 $ 5,000 $ 5,025 Comerica Bank, Ser E, MTN (C) (D) 1.230%, 06/15/04 7,000 7,000 Depfa Bank 1.270%, 06/15/05 125,000 125,000 Deutsche Bank 6.500%, 09/15/04 5,825 5,910 International Bank, Reconstruction & Development, MTN 3.500%, 10/22/04 2,000 2,015 Marshall & Ilsley Bank (C) (D) 1.200%, 12/17/04 15,000 15,007 Marshall & Ilsley Bank, Ser E, MTN 1.718%, 05/23/05 50,000 49,801 Wachovia 6.625%, 06/15/04 6,000 6,013 7.100%, 08/15/04 1,241 1,255 Wells Fargo, MTN (C) (D) 1.170%, 05/13/05 50,000 50,000 Wells Fargo, Ser C, MTN (C) (D) 1.120%, 06/02/05 10,000 10,000 Wells Fargo, Ser F, MTN 6.500%, 06/01/05 2,775 2,897 Westlb (C) (D) 1.110%, 12/17/04 15,000 15,003 ---------- 332,656 ---------- CHEMICALS (0.1%) Dupont de Nemours 6.750%, 10/15/04 3,792 3,865 ---------- 6 - -------------------------------------------------------------------------------- - ---------------------------------------------------------- FACE AMOUNT (000) VALUE (000) - ---------------------------------------------------------- CONSUMER PRODUCTS (2.0%) Anheuser-Busch 4.600%, 06/07/04 $ 3,000 $ 3,002 Diageo Capital 6.625%, 06/24/04 84,533 84,825 Emerson Electric 7.875%, 06/01/05 10,360 10,965 Unilever 7.250%, 07/07/04 8,500 8,550 ---------- 107,342 ---------- DRUGS (0.1%) Abbott Laboratories 5.125%, 07/01/04 7,165 7,188 ---------- FINANCIAL SERVICES (1.8%) Caterpillar Financial Services 6.875%, 08/01/04 1,000 1,009 General Electric Capital (C) (D) 1.180%, 06/08/04 69,000 69,000 0.684%, 12/01/51 5,297 5,266 General Electric Capital, MTN (C) (D) 1.299%, 02/03/05 1,000 1,001 General Electric Capital, Ser A, MTN (C) (D) 1.235%, 03/15/05 15,008 15,029 Wells Fargo Financial 7.600%, 05/03/05 3,700 3,899 ---------- 95,204 ---------- INSURANCE (1.6%) Fortis Finance, Ser E, MTN (C) (D) 1.150%, 06/21/04 50,000 49,999 Jefferson-Pilot (A) (C) (D) 1.290%, 05/17/05 35,000 35,000 Marsh & Mclennan 6.625%, 06/15/04 3,000 3,006 ---------- 88,005 ---------- - ---------------------------------------------------------- FACE AMOUNT (000) VALUE (000) - ---------------------------------------------------------- INVESTMENT BANKERS/BROKER DEALERS (6.9%) Bear Stearns, Ser B, MTN (C) (D) 1.540%, 06/01/04 $ 3,200 $ 3,200 1.383%, 03/18/05 50,000 50,102 1.313%, 04/15/05 60,000 60,089 Credit Suisse First Boston, Ser E, MTN (C) (D) 1.340%, 03/21/05 10,000 10,018 Goldman Sachs Group, Ser B, MTN (C) (D) 1.360%, 07/09/04 85,000 85,026 1.460%, 07/12/04 20,000 20,009 Lehman Brothers, Ser G, MTN (C) (D) 1.400%, 06/10/04 10,000 10,001 1.510%, 07/06/04 8,000 8,004 1.390%, 01/14/05 8,700 8,718 Merrill Lynch, MTN (C) (D) 1.179%, 02/04/05 30,000 30,000 Merrill Lynch, Ser B, MTN 5.350%, 06/15/04 5,000 5,008 Merrill Lynch, Ser E, MTN (C) (D) 1.430%, 12/21/04 3,000 3,005 Morgan Stanley, Ser 1, MTN (C) (D) 1.220%, 05/13/05 75,000 75,000 ---------- 368,180 ---------- MISCELLANEOUS BUSINESS CREDIT INSTITUTIONS (10.9%) American Express Centurion Bank (C) (D) 1.060%, 02/25/05 25,000 25,000 1.060%, 04/29/05 25,000 24,995 American Express Credit, Ser B, MTN (C) (D) 1.150%, 06/03/05 90,000 90,000 7 STATEMENT OF NET ASSETS - -------------------------------------------------------------------------------- STI CLASSIC FUNDS MAY 31, 2004 PRIME QUALITY MONEY MARKET FUND--CONTINUED - ---------------------------------------------------------- FACE AMOUNT (000) VALUE (000) - ---------------------------------------------------------- MISCELLANEOUS BUSINESS CREDIT INSTITUTIONS -- CONTINUED American General Finance, Ser G, MTN (C) (D) 1.363%, 09/30/04 $ 24,500 $ 24,518 1.410%, 03/24/05 10,000 10,028 Associates (C) (D) 1.210%, 06/15/04 75,000 75,000 CIT Group, MTN (C) (D) 1.440%, 08/26/04 2,000 2,001 2.670%, 01/31/05 825 833 1.510%, 02/14/05 30,690 30,746 CIT Group, MTN 1.200%, 12/01/04 130,500 130,534 Household Finance 8.000%, 08/01/04 3,000 3,032 5.875%, 09/25/04 17,500 17,739 National Rural Utilities 1.060%, 06/11/04 25,000 25,000 1.040%, 06/25/04 5,000 5,000 6.125%, 05/15/05 2,235 2,327 Newport Credit Group, Ser B 6.875%, 02/16/05 17,800 18,456 Northern Rock (A) (C) (D) 1.110%, 01/13/05 2,000 2,000 Northern Rock (C) (D) 1.260%, 03/14/05 40,000 40,055 Northern Rock, MTN (A) (C) (D) 1.130%, 12/09/04 18,250 18,251 SLM (C) (D) 1.390%, 06/16/04 40,000 40,005 ---------- 585,520 ---------- PETROLEUM & FUEL PRODUCTS (0.1%) ChevronTexaco 6.625%, 10/01/04 1,000 1,017 Exxon Capital (E) 1.345%, 11/15/04 3,750 3,726 ---------- 4,743 ---------- - ---------------------------------------------------------- FACE AMOUNT (000) VALUE (000) - ---------------------------------------------------------- PRINTING & PUBLISHING (0.1%) New York Times 7.625%, 03/15/05 $ 5,100 $ 5,339 ---------- RETAIL (0.3%) Home Depot 6.500%, 09/15/04 3,200 3,246 Wal-Mart 6.550%, 08/10/04 12,060 12,181 ---------- 15,427 ---------- TELEPHONE & TELECOMMUNICATIONS (2.6%) AT&T Capital, Ser F, MTN 6.600%, 05/15/05 10,562 11,019 BellSouth (A) (C) 4.119%, 04/26/05 125,000 127,792 ---------- 138,811 ---------- TRANSPORT SERVICES (0.1%) United Technologies 6.625%, 11/15/04 6,150 6,289 ---------- UTILITIES (1.2%) Alabama Power, Ser K (C) (D) 7.125%, 08/15/04 3,000 3,036 Georgia Power (C) (D) 1.385%, 02/18/05 18,250 18,271 1.240%, 04/15/05 40,000 40,044 ---------- 61,351 ---------- Total Corporate Obligations (Cost $2,419,113) 2,419,113 ---------- 8 - -------------------------------------------------------------------------------- - ---------------------------------------------------------- FACE AMOUNT (000) VALUE (000) - ---------------------------------------------------------- COMMERCIAL PAPER (34.8%) ASSET BACKED (5.5%) Atlantis One Funding 1.050%, 06/07/04 $ 26,210 $ 26,205 1.150%, 07/15/04 1,130 1,128 Beta Finance 1.040%, 06/22/04 9,000 8,995 Ciesco (E) 1.040%, 06/24/04 34,000 33,977 Compass Securitization 1.050%, 06/15/04 40,000 39,984 1.060%, 06/16/04 6,032 6,029 1.050%, 06/18/04 7,215 7,211 1.050%, 06/21/04 6,055 6,052 1.080%, 06/29/04 1,045 1,044 Dorada Finance 1.060%, 06/07/04 9,500 9,498 1.060%, 06/14/04 6,500 6,498 1.050%, 06/17/04 11,000 10,995 Mane Funding 1.250%, 08/19/04 19,067 19,015 1.270%, 08/23/04 19,995 19,937 Starfish Global Funding 1.060%, 06/10/04 60,000 59,984 1.050%, 06/23/04 36,156 36,133 ---------- 292,685 ---------- AUTO FINANCE (2.8%) Volkswagen of America 1.150%, 06/03/04 4,000 4,000 1.150%, 06/07/04 18,000 17,996 1.140%, 06/15/04 75,000 74,967 1.150%, 06/24/04 40,000 39,970 1.160%, 06/28/04 15,000 14,987 ---------- 151,920 ---------- - ---------------------------------------------------------- FACE AMOUNT (000) VALUE (000) - ---------------------------------------------------------- BANKS (4.0%) ANZ Delaware 1.050%, 06/21/04 $ 5,500 $ 5,497 1.050%, 06/25/04 2,800 2,798 1.100%, 07/07/04 1,400 1,399 1.100%, 07/08/04 1,000 999 1.060%, 07/19/04 2,000 1,997 Bank of Ireland 1.320%, 09/08/04 2,500 2,491 Citicorp 1.060%, 06/30/04 125,000 124,893 1.150%, 07/12/04 60,000 59,921 Den Norse Bank 1.260%, 08/20/04 3,976 3,965 UBS Finance 1.085%, 07/06/04 6,000 5,994 1.320%, 09/10/04 2,600 2,590 ---------- 212,544 ---------- DRUGS (6.6%) Aventis 1.050%, 06/17/04 65,000 64,970 1.080%, 06/25/04 41,000 40,971 1.060%, 06/29/04 22,000 21,982 1.110%, 07/07/04 50,000 49,944 Bristol-Myers Squibb 1.040%, 06/04/04 89,780 89,772 1.050%, 06/15/04 2,850 2,849 1.050%, 06/22/04 77,070 77,023 1.050%, 06/24/04 6,454 6,450 ---------- 353,961 ---------- FINANCE (0.1%) Westpac Capital 1.050%, 06/07/04 3,900 3,899 ---------- 9 STATEMENT OF NET ASSETS - -------------------------------------------------------------------------------- STI CLASSIC FUNDS MAY 31, 2004 PRIME QUALITY MONEY MARKET FUND--CONTINUED - ---------------------------------------------------------- FACE AMOUNT (000) VALUE (000) - ---------------------------------------------------------- INSURANCE (1.9%) Allianz Financial 1.090%, 07/06/04 $ 65,000 $ 64,931 ING America Insurance Holdings 1.320%, 09/10/04 4,600 4,583 Jefferson-Pilot 1.050%, 06/14/04 11,600 11,596 1.040%, 06/17/04 22,000 21,990 ---------- 103,100 ---------- INVESTMENT BANKERS/BROKER DEALERS (1.9%) Barclays U.S. Funding 1.280%, 09/21/04 900 896 Morgan Stanley 1.040%, 06/23/04 50,000 49,968 1.100%, 07/27/04 50,000 50,000 ---------- 100,864 ---------- MISCELLANEOUS BUSINESS CREDIT INSTITUTIONS (5.1%) Alliance & Leicester 1.250%, 08/20/04 95,000 94,736 American General Finance 1.050%, 06/09/04 5,000 4,999 CIT Group 1.250%, 08/12/04 9,260 9,237 National Rural Utilities 1.040%, 06/22/04 43,880 43,853 1.040%, 06/23/04 35,000 34,978 1.105%, 07/07/04 44,310 44,261 1.150%, 07/08/04 37,237 37,193 Spintab 1.320%, 09/08/04 5,400 5,380 ---------- 274,637 ---------- - ---------------------------------------------------------- FACE AMOUNT (000) VALUE (000) - ---------------------------------------------------------- TELEPHONE & TELECOMMUNICATIONS (5.3%) Bellsouth 1.050%, 06/01/04 $ 8,000 $ 8,000 1.040%, 06/04/04 10,000 9,999 SBC Communications 1.060%, 06/07/04 30,000 29,995 1.040%, 06/22/04 40,000 39,976 1.060%, 06/23/04 40,000 39,974 SBC International 1.050%, 06/08/04 10,935 10,933 1.050%, 06/14/04 50,000 49,981 Verizon Network Funding 1.050%, 06/03/04 45,000 44,997 1.050%, 06/29/04 50,000 49,959 ---------- 283,814 ---------- UTILITIES (1.6%) Southern Company Funding 1.040%, 06/11/04 15,300 15,296 1.050%, 06/17/04 59,050 59,022 1.060%, 06/30/04 13,500 13,489 ---------- 87,807 ---------- Total Commercial Paper (Cost $1,865,231) 1,865,231 ---------- CERTIFICATES OF DEPOSIT (13.5%) Barclays Bank (C) (D) 1.020%, 09/07/04 175,375 175,360 Canadian Imperial Bank (C) (D) 1.040%, 05/31/05 50,000 49,986 Comerica Bank (C) (D) 1.070%, 11/02/04 20,000 20,000 1.270%, 11/08/04 25,000 25,023 Credit Lyonnais, Ser Y (C) (D) 1.030%, 04/04/05 100,000 99,979 10 - -------------------------------------------------------------------------------- - ---------------------------------------------------------- SHARES/FACE AMOUNT (000) VALUE (000) - ---------------------------------------------------------- CERTIFICATES OF DEPOSIT -- CONTINUED Credit Suisse First Boston, Ser Y (C) (D) 1.075%, 09/20/04 $125,000 $ 125,008 1.060%, 04/05/05 50,000 49,992 First Tennessee Bank 1.040%, 06/21/04 10,000 10,000 Lloyds TSB Bank, NY 1.180%, 06/07/04 13,000 13,000 Marshall & Ilsley Bank 1.568%, 03/10/05 42,000 42,050 Rabobank Nederland (C) (D) 1.060%, 03/02/05 100,000 100,008 Wachovia Bank (C) (D) 1.150%, 10/29/04 15,000 15,006 ---------- Total Certificates of Deposit (Cost $725,412) 725,412 ---------- MASTER NOTE (3.2%) BANKS (3.2%) Bank of America (C) (D) 1.163%, 06/01/04 170,000 170,000 ---------- Total Master Note (Cost $170,000) 170,000 ---------- CASH EQUIVALENT (1.4%) Federated Prime Value Money Market Fund, Institutional Shares 75,000,000 75,000 ---------- Total Cash Equivalent (Cost $75,000) 75,000 ---------- - ---------------------------------------------------------- FACE AMOUNT (000) VALUE (000) - ---------------------------------------------------------- REPURCHASE AGREEMENTS (1.4%) Banque Nationale de Paris 0.980% dated 05/28/04, matures 06/01/04, repurchase price $5,391,777 (collateralized by U.S. Government obligations: total market value $5,499,859) (B) $ 5,391 $ 5,391 Bear Stearns 1.020% dated 05/28/04, matures 06/01/04, repurchase price $9,646,419 (collateralized by U.S. Government obligations: total market value $9,841,728) (B) 9,645 9,645 Lehman Brothers 1.040% dated 05/28/04, matures 06/01/04, repurchase price $14,630,243 (collateralized by U.S. Government obligations: total market value $14,922,962) (B) 14,629 14,629 Merrill Lynch 1.020% dated 05/28/04, matures 06/01/04, repurchase price $17,028,249 (collateralized by U.S. Government obligations: total market value $17,367,872) (B) 17,027 17,027 Morgan Stanley 1.010%, dated 05/28/04, matures 06/01/04, repurchase price $11,533,618 (collateralized by U.S. Government obligations: total market value $11,802,755) (B) 11,533 11,533 11 STATEMENT OF NET ASSETS - -------------------------------------------------------------------------------- STI CLASSIC FUNDS MAY 31, 2004 PRIME QUALITY MONEY MARKET FUND--CONCLUDED - ---------------------------------------------------------- FACE AMOUNT (000) VALUE (000) - ---------------------------------------------------------- REPURCHASE AGREEMENTS -- CONTINUED UBS Warburg 1.010% dated 05/28/04, matures 06/01/04, repurchase price $15,742,146 (collateralized by U.S. Government obligations: total market value $16,056,438) (B) $ 15,741 $ 15,741 ---------- Total Repurchase Agreements (Cost $73,966) 73,966 ---------- Total Investments (99.5%) (Cost $5,328,722) 5,328,722 ---------- OTHER ASSETS AND LIABILITIES (0.5%) Receivable from Affiliated Funds 16 Payable to Adviser (7) Investment Advisory Fees Payable (2,469) Administration Fees Payable (315) Distribution Fees Payable (276) Custodian Fees Payable (23) Transfer Agent Shareholder Servicing Fees Payable (24) Trustees' Fees Payable (4) Other Assets and Liabilities, Net 29,037 ---------- Total Other Assets and Liabilities 25,935 ---------- - ---------------------------------------------------------- VALUE (000) - ---------------------------------------------------------- NET ASSETS: Paid in Capital -- T Shares (unlimited authorization -- no par value) based on 3,477,649,352 outstanding shares of beneficial interest $3,477,627 Paid in Capital -- A Shares (unlimited authorization -- no par value) based on 1,851,597,612 outstanding shares of beneficial interest 1,851,621 Paid in Capital -- L Shares (unlimited authorization -- no par value) based on 25,442,935 outstanding shares of beneficial interest 25,442 Distribution in excess of net investment income (65) Accumulated net realized gain on investments 32 ---------- Total Net Assets (100.0%) $5,354,657 ========== Net Asset Value, Offering and Redemption Price Per Share -- T Shares ($3,477,598,223 / 3,477,649,352 shares) $ 1.00 ========== Net Asset Value, Offering and Redemption Price Per Share -- A Shares ($1,851,615,312 / 1,851,597,612 shares) $ 1.00 ========== Net Asset Value, Offering and Redemption Price Per Share -- L Shares (1) ($25,443,729 / 25,442,935 shares) $ 1.00 ========== THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS. FOR DESCRIPTIONS OF ABBREVIATIONS AND FOOTNOTES, PLEASE SEE PAGE 37. 12 - -------------------------------------------------------------------------------- TAX-EXEMPT MONEY MARKET FUND - ---------------------------------------------------------- FACE AMOUNT (000) VALUE (000) - ---------------------------------------------------------- MUNICIPAL BONDS (98.5%) ALABAMA (5.0%) Birmingham, Special Care Facilities, Carraway Methodist Health Project, Ser A, RB (LOC: Amsouth Bank) (C) (D) 1.130%, 08/15/28 $ 9,795 $ 9,795 Birmingham, Special Care Facilities, Ser PT-510, RB (C) (D) 1.160%, 11/15/20 14,540 14,540 Cherokee, Industrial Development Board, BOC Group Project, RB (LOC: Wachovia Bank of Georgia) (C) (D) 1.070%, 04/01/08 3,500 3,500 Covington County, GO (LOC: SouthTrust Bank) (C) (D) 1.160%, 06/01/32 2,355 2,355 Daphne-Villa Mercy, Special Care Facility Authority, Mercy Medical Project, RB (LOC: Amsouth Bank) (C) (D) 1.030%, 12/01/30 13,200 13,200 Daphne-Villa Mercy, Special Care Facility Authority, Mercy Medical Project, RB (LOC: SouthTrust Bank) (C) (D) 1.030%, 12/01/27 13,000 13,000 Marion, Educational Building Authority, Judson College Project, RB (LOC: SouthTrust Bank) (C) (D) 1.110%, 01/01/33 6,775 6,775 ---------- 63,165 ---------- - ---------------------------------------------------------- FACE AMOUNT (000) VALUE (000) - ---------------------------------------------------------- ALASKA (0.4%) Valdez, Exxon Pipeline Company Project, RB (C) (D) 0.980%, 10/01/25 $ 5,000 $ 5,000 ---------- ARIZONA (0.3%) Salt River Project, Agricultural Improvement & Power District, Electric System, Ser SG-10, RB (C) (D) 1.100%, 01/01/30 3,700 3,700 ---------- CALIFORNIA (0.2%) Sacramento, City Financing Authority, Water Improvement Project, RB, AMBAC (C) (D) 1.090%, 12/01/08 1,900 1,900 ---------- COLORADO (0.4%) Colorado State, Multi-Family Housing Finance Authority, St. Moritz Project, Ser H, RB, FNMA (C) (D) 1.060%, 10/15/16 5,615 5,615 ---------- CONNECTICUT (1.4%) Connecticut State, Ser 1060-R, GO (C) (D) 1.060%, 11/15/09 7,850 7,850 Connecticut State, Ser PA-1056, GO, FSA (C) (D) 1.060%, 05/15/10 10,000 10,000 ---------- 17,850 ---------- DISTRICT OF COLUMBIA (1.3%) District of Columbia, Phillips College, RB (LOC: Bank of America) (C) (D) 1.070%, 08/01/33 6,000 6,000 13 STATEMENT OF NET ASSETS - -------------------------------------------------------------------------------- STI CLASSIC FUNDS MAY 31, 2004 TAX-EXEMPT MONEY MARKET FUND--CONTINUED - ---------------------------------------------------------- FACE AMOUNT (000) VALUE (000) - ---------------------------------------------------------- DISTRICT OF COLUMBIA --CONTINUED District of Columbia, Planned Parenthood, RB (LOC: Bank of America) (C) (D) 1.070%, 12/01/29 $ 6,600 $ 6,600 District of Columbia, Thurgood Marshall Center, RB (LOC: Branch Banking & Trust) (C) (D) 1.100%, 11/01/27 3,595 3,595 ---------- 16,195 ---------- FLORIDA (8.6%) Dade County, Water & Sewer System, Ser SG-74 (C) (D) 1.100%, 10/01/25 10,000 10,000 De Soto County, Industrial Development Authority, Tremron Project, RB (LOC: Branch Banking & Trust) (C) (D) 1.200%, 11/01/15 4,000 4,000 Florida State, Housing Finance Authority, Brentwood Club Apartments Project, Ser A-1, RB (LOC: Amsouth Bank) (C) (D) 1.060%, 01/15/35 10,400 10,400 Florida State, Multi-Family Housing Finance Authority, Bainbridge Project, Ser M, RB, FNMA, AMT (C) (D) 1.030%, 12/01/25 6,370 6,370 - ---------------------------------------------------------- FACE AMOUNT (000) VALUE (000) - ---------------------------------------------------------- FLORIDA --CONTINUED Florida State, Multi-Family Housing Finance Authority, St. Andrews Pointe Apartments, Ser E-1, RB, FNMA (LOC: Bank of America) (C) (D) 1.060%, 06/15/36 $ 8,700 $ 8,700 Florida State, Multi-Family Housing Finance Authority, Stone Harbor Apartments, Ser K, RB (LOC: Amsouth Bank) (C) (D) 1.060%, 07/15/36 5,560 5,560 Hillsborough County, Industrial Development Authority, Independent Day School Project, RB (LOC: Bank of America) (C) (D) 1.120%, 09/01/26 4,400 4,400 Jacksonville, Economic Development Authority, Goodwill Project, RB (LOC: SouthTrust Bank) (C) (D) 1.110%, 07/01/23 3,100 3,100 Lee County, Housing Finance Authority, RB (LOC: U.S. Bank Trust) (C) (D) 1.300%, 03/01/34 1,850 1,850 Manatee County, St. Stephens Upper School Project, RB (LOC: Bank of America) (C) (D) 1.120%, 11/01/25 3,900 3,900 14 - -------------------------------------------------------------------------------- - ---------------------------------------------------------- FACE AMOUNT (000) VALUE (000) - ---------------------------------------------------------- FLORIDA --CONTINUED Miami-Dade County, Industrial Development Authority, Gulliver Schools Project, RB (LOC: Bank of America) (C) (D) 1.120%, 09/01/29 $ 7,350 $ 7,350 Muniemae, RB (C) (D) 1.160%, 12/19/05 5,000 5,000 Orange County, Housing Finance Authority, Charleston Club Apartments, Ser A, RB, FNMA (C) (D) 1.030%, 07/15/34 7,000 7,000 Palm Beach County, Norton Gallery Project, RB (LOC: Northern Trust Company) (C) (D) 1.070%, 05/01/25 2,500 2,500 Santa Rosa County, Health Facilities Authority, Baptist Hospital, RB (LOC: Bank of America) (C) (D) 1.070%, 10/01/21 8,400 8,400 Sarasota County, Health Facilities Authority, Bay Village Project, RB (LOC: Bank of America) (C) (D) 1.120%, 12/01/23 4,400 4,400 Tampa Bay, Regional Water Supply Authority, RB (LOC: Bank of America) (C) (D) 1.170%, 10/01/31 9,300 9,300 University of North Florida, Parking Systems Project, RB (LOC: First Union National Bank) (C) (D) 1.110%, 05/01/28 5,500 5,500 ---------- 107,730 ---------- - ---------------------------------------------------------- FACE AMOUNT (000) VALUE (000) - ---------------------------------------------------------- GEORGIA (2.6%) Atlanta, Airport Authority, Ser 313, RB, FGIC, AMT (C) (D) 1.190%, 01/01/18 $ 3,335 $ 3,335 Cobb County, Educational Facilities Development Authority, Kennesaw State University Project, RB, AMBAC (C) (D) 1.070%, 11/01/18 5,305 5,305 Georgia State, Eagle Trust, RB (C) (D) 1.120%, 07/01/15 7,025 7,025 Houston County, Development Authority, Clean Control Project, RB, AMT (LOC: Branch Banking Trust) (C) (D) 1.200%, 06/01/20 2,975 2,975 Metropolitan Atlanta, Rapid Transportation Authority, Ser SG-57, RB, AMBAC (C) (D) 1.100%, 07/01/20 5,000 5,000 Savannah, Economic Development Authority, Exempt Facilities- Construction Utilities Project, RB, AMT (LOC: Branch Banking & Trust) (C) (D) 1.200%, 12/01/19 1,975 1,975 Savannah, Economic Development Authority, Kennickell Printing Project, RB, AMT (LOC: Branch Banking & Trust) (C) (D) 1.200%, 09/01/11 1,820 1,820 15 STATEMENT OF NET ASSETS - -------------------------------------------------------------------------------- STI CLASSIC FUNDS MAY 31, 2004 TAX-EXEMPT MONEY MARKET FUND--CONTINUED - ---------------------------------------------------------- FACE AMOUNT (000) VALUE (000) - ---------------------------------------------------------- GEORGIA --CONTINUED Toombs County, Hospital Authority, Meadows Regional Medical, RB (LOC: Branch Banking & Trust) (C) (D) 1.100%, 12/01/17 $ 4,900 $ 4,900 ---------- 32,335 ---------- IDAHO (0.1%) Idaho State, Housing & Finance Association, Ser PA-115, RB (C) (D) 1.150%, 01/01/27 1,511 1,511 ---------- ILLINOIS (9.1%) Bloomington, Normal Airport Authority, GO (C) (D) 1.150%, 01/01/12 800 800 Chicago, Airport Special Facilities, Centerpoint O'Hare Project, RB, AMT (LOC: Bank One) (C) (D) 1.120%, 09/01/32 2,800 2,800 Chicago, Merlots Project, Ser WWW, GO (C) (D) 1.140%, 01/01/22 11,000 11,000 Chicago, Water Authority, Merlots Project, RB (LOC: Bank of New York) (C) (D) 1.120%, 11/01/30 14,955 14,955 Illinois State, Development Finance Authority, RB (LOC: Danske Bank) (C) (D) 1.160%, 12/01/13 28,000 28,000 Illinois State, Educational Facilities Authority, Chicago Childrens Museum Project, RB (LOC: Bank One) (C) (D) 1.100%, 02/01/28 1,600 1,600 - ---------------------------------------------------------- FACE AMOUNT (000) VALUE (000) - ---------------------------------------------------------- ILLINOIS -- CONTINUED Illinois State, Educational Facilities Authority, Museum of Science & Industry Project, RB (LOC: Northern Trust Company) (C) (D) 1.070%, 11/01/15 $ 4,700 $ 4,700 Illinois State, Health Facilities Authority, Advocate Health Care Project, Ser B, RB (C) (D) 1.100%, 08/15/22 2,200 2,200 Illinois State, Health Facilities Authority, Proctor Hospital Project, RB (LOC: Bank One) (C) (D) 1.100%, 01/01/12 3,800 3,800 Illinois State, Merlots, Ser B04, GO, FSA 1.140%, 12/01/24 7,240 7,240 Illinois State, Regional Transportation Authority, Ser SG-82, RB, MBIA (C) (D) 1.100%, 06/01/25 17,500 17,500 Lockport, Industrial Development Authority, Panduit Project, RB, AMT (LOC: Fifth Third Bank) (C) (D) 1.120%, 04/01/25 2,000 2,000 Macon County, Millikin University Project, RB, AMBAC (C) (D) 1.070%, 10/01/28 5,850 5,850 Naperville, Heritage YMCA Group, RB (LOC: Fifth Third Bank) (C) (D) 1.060%, 12/01/29 7,800 7,800 16 - -------------------------------------------------------------------------------- - ---------------------------------------------------------- FACE AMOUNT (000) VALUE (000) - ---------------------------------------------------------- ILLINOIS -- CONTINUED Savanna, Industrial Development Authority, Metform Project, Ser A, RB, AMT (LOC: Bank One) (C) (D) 1.120%, 05/01/14 $ 500 $ 500 Savanna, Industrial Development Authority, Metform Project, Ser B, RB, AMT (LOC: Bank One) (C) (D) 1.120%, 06/01/09 1,400 1,400 Wheeling, Industrial Development Authority, Circuit Service Project, RB, AMT (LOC: Bank One Illinois) (C) (D) 1.270%, 04/01/18 1,800 1,800 ---------- 113,945 ---------- INDIANA (3.4%) Elkhart County, Industrial Economic Development Authority, Holly Park Project, RB, AMT (LOC: Bank One Indiana) (C) (D) 1.270%, 02/01/10 1,500 1,500 Fort Wayne, Industrial Economic Development Authority, Technical Project, RB, AMT (LOC: First National Bank) (C) (D) 1.120%, 07/01/09 1,000 1,000 Indiana State, Development Finance Authority, Christel House Project, RB (LOC: Fifth Third Bank) (C) (D) 1.060%, 02/01/23 6,940 6,940 - ---------------------------------------------------------- FACE AMOUNT (000) VALUE (000) - ---------------------------------------------------------- INDIANA --CONTINUED Indiana State, Development Finance Authority, Culver Educational Project, RB (LOC: Northern Trust Company) (C) (D) 1.070%, 01/01/32 $12,700 $ 12,700 Indiana State, Development Finance Authority, Historical Society Project, RB (LOC: Bank One Indiana) (C) (D) 1.100%, 08/01/31 1,200 1,200 Indiana State, Health Facilities Financing Authority, Clarian Health Partners Project, Ser B, RB (C) (D) 1.050%, 02/15/26 2,000 2,000 La Porte County, Industrial Economic Development Authority, Pedcor Investments-Woodland Project, RB, AMT (LOC: FHLB) (C) (D) 1.190%, 10/01/29 2,000 2,000 Marshall County, Industrial Economic Development Authority, Culver Educational Foundation Project, RB (LOC: Bank One) (C) (D) 1.100%, 01/01/35 8,300 8,300 Warren Township, Vision 2005, Merlots, Ser A-52, RB, FGIC (C) (D) 1.140%, 07/15/20 6,600 6,600 ---------- 42,240 ---------- 17 STATEMENT OF NET ASSETS - -------------------------------------------------------------------------------- STI CLASSIC FUNDS MAY 31, 2004 TAX-EXEMPT MONEY MARKET FUND--CONTINUED - ---------------------------------------------------------- FACE AMOUNT (000) VALUE (000) - ---------------------------------------------------------- IOWA (0.5%) Iowa State, Higher Education Authority, Private College- Graceland Project, RB (LOC: Bank of America) (C) (D) 1.120%, 02/01/33 $ 3,800 $ 3,800 Sac County, Industrial Development Authority, Evapco Project, RB, AMT (LOC: Bank of America) (C) (D) 1.220%, 07/01/16 2,840 2,840 ---------- 6,640 ---------- KANSAS (0.3%) Sedgwick & Shawnee Counties, Ser PT-227, RB (C) (D) 1.150%, 12/01/22 3,875 3,875 ---------- KENTUCKY (0.3%) Campbell County, Industrial Building Authority, Hospital Imaging Project, RB (LOC: Fifth Third Bank) (C) (D) 1.080%, 04/01/20 2,815 2,815 Kentucky State, Development Districts Financing Authority, RB (LOC: First Union National Bank) (C) (D) 1.170%, 06/01/33 1,000 1,000 ---------- 3,815 ---------- MARYLAND (3.7%) Howard County, Economic Development Authority, Norbell School Project, RB (LOC: Branch Banking & Trust) (C) (D) 1.100%, 02/01/28 4,885 4,885 - ---------------------------------------------------------- FACE AMOUNT (000) VALUE (000) - ---------------------------------------------------------- MARYLAND --CONTINUED Maryland State, Economic Development Authority, YMCA Central Maryland Project, RB (LOC: Branch Banking & Trust) (C) (D) 1.100%, 04/01/28 $ 5,000 $ 5,000 Maryland State, Ser PA-816, GO (C) (D) 1.080%, 03/01/15 5,995 5,995 Montgomery County, Housing Opportunities Authority, Ser I, RB, AMT (C) (D) 1.040%, 06/01/30 30,000 30,000 ---------- 45,880 ---------- MASSACHUSETTS (2.5%) Massachusetts State, Development Finance Authority, Ser PT 514, RB (C) (D) 1.080%, 10/01/29 7,000 7,000 Massachusetts State, GO, FSA (C) (D) 1.070%, 03/01/10 9,945 9,945 1.070%, 07/01/10 14,920 14,920 ---------- 31,865 ---------- MICHIGAN (0.8%) Michigan, Ser 2004-2, RB, GNMA, (SPA: ABN Amro Bank) (C) (D) 1.180%, 12/20/11 9,780 9,780 Oakland County, Economic Development Authority, Moody Family Limited Project, RB, AMT (LOC: Bank One Michigan) (C) (D) 1.270%, 09/01/12 600 600 ---------- 10,380 ---------- 18 - -------------------------------------------------------------------------------- - ---------------------------------------------------------- FACE AMOUNT (000) VALUE (000) - ---------------------------------------------------------- MISSOURI (0.3%) Carthage, Industrial Development Authority, Schrieber Project, RB, AMT (LOC: First National Bank) (C) (D) 1.120%, 11/01/10 $ 3,100 $ 3,100 Missouri State, Environmental Improvement & Energy Resource Authority, Utilicorp United Project, RB, AMT (LOC: Toronto Dominion Bank) (C) (D) 1.120%, 05/01/28 700 700 ---------- 3,800 ---------- MONTANA (0.7%) Missoula County, Economic Development Authority, Dinny Stranahan Research Project, RB (LOC: Northern Trust Company) (C) (D) 1.070%, 06/01/20 8,500 8,500 ---------- NEVADA (1.2%) Clark County, Airport Improvement Authority, Sub- Lien Ser A-2, RB, AMT (LOC: Westdeutsche Landesbank) (C) (D) 1.090%, 07/01/25 4,020 4,020 Nevada State, Ser 344, GO, FGIC (C) (D) 1.120%, 05/15/28 5,495 5,495 Nevada State, Ser SG-114, RB (A) (C) (D) 1.100%, 03/01/27 5,000 5,000 ---------- 14,515 ---------- - ---------------------------------------------------------- FACE AMOUNT (000) VALUE (000) - ---------------------------------------------------------- NEW JERSEY (3.4%) New Jersey State, Transportation Authority, Ser PA-802, RB, FSA (C) (D) 1.060%, 12/15/09 $10,000 $ 10,000 New Jersey, Economic Development Authority, RB, MBIA (C) (D) 1.060%, 06/15/10 15,675 15,675 1.060%, 12/15/14 10,660 10,660 New Jersey, Health Facilities Authority, Wood Johnson Project, RB (LOC: Wachovia Bank) (C) (D) 1.030%, 07/01/23 6,500 6,500 ---------- 42,835 ---------- NEW YORK (14.5%) Metropolitan New York, Transportation Authority, Ser PA-1077, RB, FSA (C) (D) 1.090%, 05/15/10 20,500 20,500 New York City, Multi-Family Housing Finance Authority, 90 Washington Street, Ser A, RB (LOC: KeyBank) (C) (D) 1.030%, 07/01/35 45,100 45,100 New York City, Municipal Water Financing Authority, Ser PA-454 (C) (D) 1.080%, 07/15/30 14,500 14,500 New York City, Municipal Water Financing Authority, Ser SGB-27, RB, FSA (C) (D) 1.080%, 06/15/24 9,000 9,000 19 STATEMENT OF NET ASSETS - -------------------------------------------------------------------------------- STI CLASSIC FUNDS MAY 31, 2004 TAX-EXEMPT MONEY MARKET FUND--CONTINUED - ---------------------------------------------------------- FACE AMOUNT (000) VALUE (000) - ---------------------------------------------------------- NEW YORK -- CONTINUED New York State, Dormitory Authority, Ser PA-781, RB, FSA (C) (D) 1.080%, 05/15/17 $ 6,655 $ 6,655 New York State, Housing Finance Agency, 900 8th Avenue Housing Project, RB (LOC: Keybank) (C) (D) 1.050%, 11/01/35 40,000 40,000 New York State, Housing Finance Agency, Ser A, RB (LOC: FNMA) (C) (D) 1.050%, 05/15/33 29,000 29,000 New York State, Local Government Assistance, Ser PT-410 (C) (D) 1.080%, 04/01/10 14,925 14,925 Southeast New York, Industrial Development Agency, Unilock New York Project, RB, AMT (LOC: Bank One) (C) (D) 1.120%, 12/01/12 2,200 2,200 ---------- 181,880 ---------- NORTH CAROLINA (7.6%) Charlotte, Airport Authority, Ser A, RB, AMT, MBIA (C) (D) 1.070%, 07/01/17 3,900 3,900 Cleveland County, Family YMCA, RB (LOC: Branch Banking & Trust) (C) (D) 1.100%, 08/01/18 2,500 2,500 Forsyth County, Communications System Project, COP (C) (D) 1.100%, 10/01/12 11,530 11,530 - ---------------------------------------------------------- FACE AMOUNT (000) VALUE (000) - ---------------------------------------------------------- NORTH CAROLINA -- CONTINUED Guilford County, Industrial & Recreational Facilities Authority, YMCA Project, RB (LOC: Branch Banking & Trust) (C) (D) 1.100%, 02/01/23 $ 4,900 $ 4,900 North Carolina State, Capital Facilities Finance Agency, Aquarium Society Project, RB (LOC: Bank of America) (C) (D) 1.070%, 06/01/26 20,000 20,000 North Carolina State, Educational Facilities Finance Agency, Guilford College Project, RB, MBIA (C) (D) 1.080%, 05/01/24 2,000 2,000 North Carolina State, Medical Care Authority, Westcare Health Systems, RB (LOC: Branch Banking & Trust) (C) (D) 1.100%, 09/01/22 4,800 4,800 North Carolina State, Medical Care Commission, Friends Homes, RB (LOC: Bank of America) (C) (D) 1.070%, 09/01/33 7,165 7,165 North Carolina State, Medical Care Community Hospital, Lutheran Services for the Aging Project, RB (LOC: Branch Banking & Trust) (C) (D) 1.070%, 03/01/28 8,135 8,135 20 - -------------------------------------------------------------------------------- - ---------------------------------------------------------- FACE AMOUNT (000) VALUE (000) - ---------------------------------------------------------- NORTH CAROLINA -- CONTINUED University of North Carolina, Chapel Hill Hospital, Ser A, RB (C) (D) 1.070%, 02/01/29 $29,810 $ 29,810 ---------- 94,740 ---------- OHIO (2.7%) Ohio State, Air Quality Development Authority, JMG Limited Partnership, Ser A, RB, AMT (LOC: Westdeutsche Landesbank) (C) (D) 1.040%, 04/01/28 3,000 3,000 Ohio State, Higher Educational Facilities Commission, Pooled Financing Project, RB (LOC: Fifth Third Bank) (C) (D) 1.170%, 09/01/18 3,920 3,920 Rickenbacker, Port Authority, YMCA of Central Ohio Project, RB (LOC: Fifth Third Bank) (C) (D) 1.070%, 05/01/22 10,500 10,500 Toledo, City Services, Special Assessment (LOC: Bank One) (C) (D) 1.100%, 12/01/04 8,600 8,600 Warren County, Health Care Improvement, Otterbein Project, Ser A, RB (LOC: Fifth Third Bank) (C) (D) 1.050%, 07/01/21 8,245 8,245 ---------- 34,265 ---------- - ---------------------------------------------------------- FACE AMOUNT (000) VALUE (000) - ---------------------------------------------------------- PENNSYLVANIA (2.9%) Berks County, Industrial Development Authority, Kutztown University Foundation Project, RB (LOC: Wachovia Bank) (C) (D) 1.070%, 01/01/27 $13,000 $ 13,000 Cambria County, Industrial Development Authority, Cambria Cogeneration Project, Ser A-1, RB, AMT (LOC: Bayerische Hypo-und Vereinsbank) (C) (D) 1.180%, 12/01/28 7,125 7,125 Delaware River Port Authority, RB, FSA (C) (D) 1.090%, 01/01/18 7,000 7,000 Philadelphia, Industrial Development Authority, Chemical Heritage Foundation Project, RB (LOC: Wachovia Bank) (C) (D) 1.070%, 07/01/27 9,420 9,420 ---------- 36,545 ---------- RHODE ISLAND (0.5%) Rhode Island State, Health & Educational Building Authority, Ocean Street Assistance, RB (LOC: Sovereign Bank) (C) (D) 1.030%, 07/01/31 6,100 6,100 ---------- 21 STATEMENT OF NET ASSETS - -------------------------------------------------------------------------------- STI CLASSIC FUNDS MAY 31, 2004 TAX-EXEMPT MONEY MARKET FUND--CONTINUED - ---------------------------------------------------------- FACE AMOUNT (000) VALUE (000) - ---------------------------------------------------------- SOUTH CAROLINA (4.3%) Newberry County, Memorial Hospital Authority, Newberry County Memorial Hospital Project, RB (LOC: First Union National Bank) (C) (D) 1.070%, 12/01/29 $10,000 $ 10,000 South Carolina State, Educational Facilities Authority, Charleston Southern University Project, RB (LOC: Bank of America) (C) (D) 1.070%, 04/01/28 5,550 5,550 South Carolina State, Educational Facilities Authority, Newberry College Project, RB (LOC: Branch Banking & Trust) (C) (D) 1.100%, 08/01/22 3,890 3,890 South Carolina State, Housing Finance & Development Authority, Ser PT-1272, RB, FHLMC (C) (D) 1.160%, 12/15/30 10,000 10,000 South Carolina State, Jobs Economic Development Authority, Anderson Area YMCA Project, RB (LOC: Bank of America) (C) (D) 1.120%, 11/01/24 7,100 7,100 South Carolina State, Jobs Economic Development Authority, Carolina Village Project, RB (LOC: Branch Banking & Trust) (C) (D) 1.100%, 02/01/22 105 105 - ---------------------------------------------------------- FACE AMOUNT (000) VALUE (000) - ---------------------------------------------------------- SOUTH CAROLINA -- CONTINUED South Carolina State, Jobs Economic Development Authority, Developmental Foundation Project, RB (LOC: Branch Banking & Trust) (C) (D) 1.100%, 12/01/10 $ 6,000 $ 6,000 South Carolina State, Jobs Economic Development Authority, Diversified Coating Project, RB (LOC: Branch Banking & Trust) (C) (D) 1.200%, 04/01/17 1,800 1,800 South Carolina State, Jobs Economic Development Authority, Sargent Metal Fabricators Project, RB (LOC: Branch Banking & Trust) (C) (D) 1.200%, 11/01/22 2,555 2,555 South Carolina State, Jobs Economic Development Authority, YWCA Beaufort County Project, RB (LOC: Branch Banking & Trust) (C) (D) 1.100%, 12/01/24 3,450 3,450 University of South Carolina, Development Foundation, RB (LOC: Branch Banking & Trust) (C) (D) 1.110%, 12/01/10 4,000 4,000 ---------- 54,450 ---------- 22 - -------------------------------------------------------------------------------- - ---------------------------------------------------------- FACE AMOUNT (000) VALUE (000) - ---------------------------------------------------------- TENNESSEE (2.1%) Covington, Industrial Development Board, Charms Project, RB, AMT (LOC: Bank of America) (C) (D) 1.120%, 06/01/27 $ 3,000 $ 3,000 Knox County, Industrial Development Board, Educational Services of America Project, RB (LOC: Branch Banking & Trust) (C) (D) 1.100%, 12/01/22 3,705 3,705 Metropolitan Government Nashville & Davidson County, Nashville Christian School Project, RB (LOC: SouthTrust Bank) (C) (D) 1.110%, 09/01/23 1,665 1,665 Nashville and Davidson Counties, Industrial Development Board, Nashville Symphony Hall Project, RB (LOC: Bank of America) (C) (D) 1.070%, 12/01/31 3,000 3,000 Tennessee State, Local Development Authority, BAN, Ser A (C) (D) 3.000%, 05/31/05 15,000 15,220 ---------- 26,590 ---------- TEXAS (4.9%) Coastal Bend, Health Facilities Development Authority, Incarnate World Health Systems Project, Ser B, RB, AMBAC (C) (D) 1.050%, 08/15/28 17,400 17,400 - ---------------------------------------------------------- FACE AMOUNT (000) VALUE (000) - ---------------------------------------------------------- TEXAS -- CONTINUED Houston, Airport System, Ser SG-149, RB, FSA (C) (D) 1.120%, 07/01/28 $17,500 $ 17,500 Houston, Higher Education Finance Authority, Rice University, Ser SG-139, RB (C) (D) 1.100%, 11/15/29 3,100 3,100 Houston, Water & Sewer System Authority, Ser SG-78, RB (C) (D) 1.100%, 12/01/25 8,835 8,835 Pearland, Independent School District, Ser SG-106, GO (C) (D) 1.100%, 02/15/22 600 600 Texas State, Eagle Trust, Ser 991301, GO (C) (D) 1.120%, 06/01/25 9,900 9,900 Texas State, Lower Colorado River Authority, Merlots, Ser ZZZ, RB (C) (D) 1.140%, 10/01/28 3,500 3,500 ---------- 60,835 ---------- VIRGINIA (9.7%) Alexandria, Redevelopment & Housing Authority, Ser PT1251 (C) (D) 1.250%, 10/07/04 4,495 4,495 Arlington County, GO (C) (D) 1.070%, 07/22/04 4,700 4,700 23 STATEMENT OF NET ASSETS - -------------------------------------------------------------------------------- STI CLASSIC FUNDS MAY 31, 2004 TAX-EXEMPT MONEY MARKET FUND--CONTINUED - ---------------------------------------------------------- FACE AMOUNT (000) VALUE (000) - ---------------------------------------------------------- VIRGINIA -- CONTINUED Charlottesville, Industrial Development Authority, Seminole Project, Ser A, RB (LOC: Branch Banking & Trust) (C) (D) 1.100%, 12/01/13 $ 3,635 $ 3,635 Chesterfield County, Industrial Development Authority, RB (SPA: Merrill Lynch) (C) (D) 1.180%, 02/15/07 7,995 7,995 Clarke County, Industrial Development Authority, Powhatan School District Project, RB (LOC: Branch Banking & Trust) (C) (D) 1.100%, 09/01/22 1,600 1,600 Danville, Industrial Development Authority, Institute of Advanced Research Project, RB (LOC: Branch Banking & Trust) (C) (D) 1.100%, 08/01/12 7,355 7,355 Fairfax County, Industrial Development Authority, Fairfax Hospital Project, Ser A, RB (C) (D) 0.990%, 10/01/25 3,500 3,500 Fairfax County, Industrial Development Authority, Innovations Health Systems, RB (C) (D) 0.990%, 01/01/30 4,465 4,465 Fairfax County, Ser 392, COP (C) (D) 1.110%, 04/15/32 7,450 7,450 - ---------------------------------------------------------- FACE AMOUNT (000) VALUE (000) - ---------------------------------------------------------- VIRGINIA -- CONTINUED Front Royal & Warren County, Industrial Development Authority, Warren Memorial Hospital Project, RB (LOC: Branch Banking & Trust) (C) (D) 1.100%, 05/01/23 $ 2,945 $ 2,945 Hanover County, Industrial Development Authority, Covenant Woods Project, RB (LOC: Branch Banking & Trust) (C) (D) 1.100%, 07/01/29 7,040 7,040 Louisa County, Industrial Development Authority, University of Virginia Health Services Foundation, RB (LOC: First Union National Bank) (C) (D) 1.080%, 10/01/30 3,000 3,000 Norfolk, Eagle Trust, Ser 944601, GO (C) (D) 1.120%, 06/01/05 9,900 9,900 Rockingham County, Industrial Development Authority, Sunnyside Presbyterian, RB (LOC: Branch Banking & Trust) (C) (D) 1.100%, 12/01/33 10,600 10,600 Shenandoah County, Industrial Development Authority, Shenandoah Memorial Hospital, RB (LOC: Branch Banking & Trust) (C) (D) 1.100%, 11/01/14 3,520 3,520 University of Virginia, Merlots, Ser B-31, RB (C) (D) 1.140%, 06/01/27 4,745 4,745 24 - -------------------------------------------------------------------------------- - ---------------------------------------------------------- FACE AMOUNT (000) VALUE (000) - ---------------------------------------------------------- VIRGINIA -- CONTINUED Virginia Beach, Development Authority, Production Road Ventures, RB (LOC: Wachovia Bank) (C) (D) 1.200%, 09/01/16 $ 1,200 $ 1,200 Virginia Beach, Development Authority, Ser PT-1146, RB (C) (D) 1.110%, 07/01/06 6,830 6,830 Virginia College, Building Authority, Shenandoah University Project, RB (LOC: Branch Banking & Trust) (C) (D) 1.070%, 05/01/32 3,000 3,000 Virginia State, Biotechnology Research Park Authority, RB (LOC: Wachovia Bank) (C) (D) 1.070%, 04/01/27 6,890 6,890 Virginia State, Public School Authority, RB (C) (D) 1.120%, 08/01/17 4,180 4,180 Virginia State, Public School Authority, Ser PT-1619, RB (C) (D) 1.080%, 08/01/17 2,500 2,500 Virginia, Ser2003-33, RB, MBIA (SPA: ABN-Amro Bank) (C) (D) 1.100%, 04/01/11 5,370 5,370 Williamsburg, Industrial Development Authority, Colonial Williamsburg, RB (LOC: First Union National Bank) (C) (D) 1.070%, 10/01/35 4,220 4,220 ---------- 121,135 ---------- - ---------------------------------------------------------- FACE AMOUNT (000) VALUE (000) - ---------------------------------------------------------- WASHINGTON (2.5%) King County, Housing Authority, RB (C) (D) 1.080%, 09/20/42 $ 5,500 $ 5,500 King County, Water & Sewer Authority, RB, FSA (C) (D) 1.100%, 01/01/10 7,495 7,495 Seattle, Ser 348, GO (C) (D) 1.120%, 12/15/28 4,495 4,495 Washington State, Merlots, Ser B-23, GO, MBIA (C) (D) 1.140%, 12/01/25 10,000 10,000 Washington State, Public Power Supply System, Nuclear Power Project No.1, Ser 1A-1, RB (LOC: Bank of America) (C) (D) 1.050%, 07/01/17 3,945 3,945 ---------- 31,435 ---------- WISCONSIN (0.3%) Appleton, Industrial Development Authority, Pro Label Project, RB, AMT (LOC: Bank One) (C) (D) 1.370%, 11/01/12 585 585 Germantown, Industrial Development Authority, Speaker Project, RB, AMT (LOC: Bank One Milwaukee) (C) (D) 1.370%, 08/01/11 625 625 Holland, Industrial Development Authority, White Clover Dairy Project, RB, AMT (LOC: Bank One Wisconsin) (C) (D) 1.270%, 06/01/13 1,040 1,040 25 STATEMENT OF NET ASSETS - -------------------------------------------------------------------------------- STI CLASSIC FUNDS MAY 31, 2004 TAX-EXEMPT MONEY MARKET FUND--CONCLUDED - ---------------------------------------------------------- FACE AMOUNT (000)/SHARES VALUE (000) - ---------------------------------------------------------- WISCONSIN --CONTINUED Oconomowoc, Industrial Development Authority, Quest Technologies Project, RB, AMT (LOC: Bank One Wisconsin) (C) (D) 1.270%, 05/01/18 $ 1,255 $ 1,255 ---------- 3,505 ---------- Total Municipal Bonds (Cost $1,234,771) 1,234,771 ---------- OTHER (2.2%) Puttable Floating Rate Option, Tax-Exempt Receipts, Cl A (C) (D) 1.160%, 01/01/32 17,400 17,400 Puttable Floating Rate Option, Tax-Exempt Receipts, Cl B (C) (D) 1.200%, 01/01/32 10,000 10,000 ---------- Total Other (Cost $27,400) 27,400 ---------- CASH EQUIVALENT (0.4%) Goldman Sachs Financial Square Funds, Tax Free Money Market Fund 4,876,073 4,876 ---------- Total Cash Equivalent (Cost $4,876) 4,876 ---------- Total Investments (101.1%) (Cost $1,267,047) 1,267,047 ---------- - ---------------------------------------------------------- VALUE (000) - ---------------------------------------------------------- OTHER ASSETS AND LIABILITIES (-1.1%) Receivable from Affiliated Funds $ 4 Payable to Adviser (4) Investment Advisory Fees Payable (489) Administration Fees Payable (75) Distribution Fees Payable (29) Custodian Fees Payable (5) Transfer Agent Shareholder Servicing Fees Payable (6) Trustees' Fees Payable (1) Other Assets and Liabilities, Net (13,351) ---------- Total Other Assets and Liabilities (13,956) ---------- NET ASSETS: Paid in Capital -- T Shares (unlimited authorization -- no par value) based on 978,260,703 outstanding shares of beneficial interest 978,261 Paid in Capital -- A Shares (unlimited authorization -- no par value) based on 274,481,428 outstanding shares of beneficial interest 274,482 Accumulated net realized gain on investments 348 ---------- Total Net Assets (100.0%) $1,253,091 ========== Net Asset Value, Offering and Redemption Price Per Share -- T Shares ($978,548,237 / 978,260,703 shares) $ 1.00 ========== Net Asset Value, Offering and Redemption Price Per Share -- A Shares ($274,542,338 / 274,481,428 shares) $ 1.00 ========== THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS. FOR DESCRIPTIONS OF ABBREVIATIONS AND FOOTNOTES, PLEASE SEE PAGE 37. 26 - -------------------------------------------------------------------------------- U.S. GOVERNMENT SECURITIES MONEY MARKET FUND - ---------------------------------------------------------- FACE AMOUNT (000) VALUE (000) - ---------------------------------------------------------- U.S. GOVERNMENT AGENCY OBLIGATIONS (82.7%) FFCB 1.000%, 01/28/05 $20,000 $ 20,000 1.000%, 05/16/05 25,000 24,995 FFCB (C) (D) 0.980%, 08/24/04 15,000 14,998 FHLB 1.166%, 09/29/04 25,000 25,000 1.400%, 04/01/05 20,000 19,999 1.200%, 04/01/05 15,000 14,996 FHLB, Ser 423 1.156%, 12/17/04 45,200 45,197 FHLB, Ser RX04 1.141%, 06/09/04 53,000 53,000 FHLB, Ser VI04 1.186%, 10/06/04 25,000 25,000 FHLB, Ser YP04 1.166%, 12/15/04 25,000 25,000 FHLMC Discount Note (E) 1.210%, 06/21/04 15,000 14,990 1.471%, 11/23/04 10,000 9,929 FHLMC, Ser 3, MTN 1.520%, 12/24/04 10,000 10,000 FNMA 1.196%, 08/13/04 35,000 35,000 1.030%, 08/23/04 40,000 40,000 1.360%, 02/15/05 15,000 15,000 1.030%, 02/23/05 50,000 50,000 1.018%, 05/03/05 25,000 24,995 FNMA Discount Note (E) 1.096%, 06/02/04 15,000 15,000 1.212%, 07/01/04 10,000 9,990 1.358%, 08/20/04 10,000 9,970 1.210%, 09/17/04 10,000 9,964 1.167%, 10/13/04 15,000 14,935 1.440%, 11/17/04 10,000 9,933 1.079%, 12/16/04 10,000 9,941 1.214%, 01/07/05 20,000 19,847 1.245%, 02/04/05 20,000 19,830 1.573%, 04/01/05 10,000 9,869 - ---------------------------------------------------------- FACE AMOUNT (000) VALUE (000) - ---------------------------------------------------------- U.S. GOVERNMENT AGENCY OBLIGATIONS --CONTINUED FNMA Discount Note (E) 1.420%, 11/03/04 $ 25,000 $ 24,848 FRMMT 1.045%, 02/24/05 30,000 30,000 SLMA 1.126%, 08/19/04 24,750 24,750 1.136%, 10/21/04 25,000 25,000 -------- Total U.S. Government Agency Obligations (Cost $701,976) 701,976 -------- REPURCHASE AGREEMENTS (17.3%) ABN-Amro 0.980%, dated 05/28/04, matures 06/01/04, repurchase price $14,863,660 (collateralized by U.S. Government Obligations: total market value $15,159,934) (B) 14,862 14,862 Banque Nationale de Paris 0.980%, dated 05/28/04, matures 06/01/04, repurchase price $44,204,073 (collateralized by U.S. Government Obligations: total market value $45,084,994) (B) 44,201 44,201 Bear Stearns 1.020%, dated 05/28/04, matures 06/01/04, repurchase price $10,285,698 (collateralized by U.S. Government Obligations: total market value $10,493,238) (B) 10,285 10,285 27 STATEMENT OF NET ASSETS/SCHEDULE OF INVESTMENTS - -------------------------------------------------------------------------------- STI CLASSIC FUNDS MAY 31, 2004 U.S. GOVERNMENT SECURITIES MONEY MARKET FUND -- concluded - ---------------------------------------------------------- FACE AMOUNT (000) VALUE (000) - ---------------------------------------------------------- REPURCHASE AGREEMENTS -- CONTINUED Lehman Brothers 1.040%, dated 05/28/04, matures 06/01/04, repurchase price $25,338,875 (collateralized by U.S. Government Obligations: total market value $25,845,664) (B) $25,337 $ 25,337 Merrill Lynch 1.020%, dated 05/28/04, matures 06/01/04, repurchase price $20,722,235 (collateralized by U.S. Government Obligations: total market value $21,135,990) (B) 20,721 20,721 Morgan Stanley Dean Witter 1.010%, dated 05/28/04, matures 06/01/04, repurchase price $15,765,809 (collateralized by U.S. Government Obligations: total market value $16,079,795) (B) 15,765 15,765 UBS Warburg 1.010%, dated 05/28/04, matures 06/01/04, repurchase price $16,134,092 (collateralized by U.S. Government Obligations: total market value $16,457,300) (B) 16,133 16,133 -------- Total Repurchase Agreements (Cost $147,304) 147,304 -------- Total Investments (100.0%) (Cost $849,280) 849,280 -------- - ---------------------------------------------------------- VALUE (000) - ---------------------------------------------------------- OTHER ASSETS AND LIABILITIES (0.0%) Receivable from Affiliated Funds $ 3 Payable to Adviser (3) Investment Advisory Fees Payable (399) Administration Fees Payable (49) Distribution Fees Payable (27) Custodian Fees Payable (4) Transfer Agent Shareholder Servicing Fees Payable (4) Trustees' Fees Payable (1) Other Assets and Liabilities, Net 628 -------- Total Other Assets and Liabilities 144 -------- NET ASSETS: Paid in Capital -- T Shares (unlimited authorization -- no par value) based on 615,314,726 outstanding shares of beneficial interest 615,291 Paid in Capital -- A Shares (unlimited authorization -- no par value) based on 234,098,509 outstanding shares of beneficial interest 234,121 Undistributed net investment income 11 Accumulated net realized gain on investments 1 -------- Total Net Assets (100.0%) $849,424 ======== Net Asset Value, Offering and Redemption Price Per Share -- T Shares ($615,323,580 / 615,314,726 shares) $ 1.00 ======== Net Asset Value, Offering and Redemption Price Per Share -- A Shares ($234,100,470 / 234,098,509 shares) $ 1.00 ======== THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS. FOR DESCRIPTIONS OF ABBREVIATIONS AND FOOTNOTES, PLEASE SEE PAGE 37. 28 - -------------------------------------------------------------------------------- U.S. TREASURY MONEY MARKET FUND - ---------------------------------------------------------- FACE AMOUNT (000) VALUE (000) - ---------------------------------------------------------- U.S. TREASURY OBLIGATIONS (32.1%) U.S. Treasury Bills (E) 0.945%, 06/15/04 $125,000 $ 124,961 0.901%, 06/17/04 160,000 159,936 U.S. Treasury Notes 1.625%, 04/30/05 100,000 100,220 6.750%, 05/15/05 10,000 10,485 ---------- Total U.S. Treasury Obligations (Cost $395,602) 395,602 ---------- REPURCHASE AGREEMENTS (68.8%) ABN-Amro 0.960% dated 05/28/04, matures 06/01/04, repurchase price $165,491,004 (collateralized by U.S. Treasury obligations: total market value $168,788,412) (B) 165,478 165,478 Banque de Paribas 0.950% dated 05/28/04, matures 06/01/04, repurchase price $60,007,824 (collateralized by U.S. Treasury obligations: total market value $61,203,379) (B) 60,003 60,003 Bear Stearns 0.930% dated 05/28/04, matures 06/01/04, repurchase price $9,862,929 (collateralized by U.S. Treasury obligations: total market value $10,064,124) (B) 9,862 9,862 Deutsche Bank 0.970% dated 05/28/04, matures 06/01/04, repurchase price $214,534,295 (collateralized by U.S. Treasury obligations: total market value $218,807,800) (B) 214,517 214,517 - ---------------------------------------------------------- FACE AMOUNT (000) VALUE (000) - ---------------------------------------------------------- Dresdner Bank 0.950% dated 05/28/04, matures 06/01/04, repurchase price $61,563,862 (collateralized by U.S. Treasury obligations: total market value $62,793,557) (B) $ 61,559 $ 61,559 Greenwich Capital 0.960% dated 05/28/04, matures 06/01/04, repurchase price $57,236,654 (collateralized by U.S. Treasury obligations: total market value $58,378,879) (B) 57,232 57,232 JPMorgan 0.950% dated 05/28/04, matures 06/01/04, repurchase price $55,144,258 (collateralized by U.S. Treasury obligations: total market value $56,245,143) (B) 55,140 55,140 Lehman Brothers 0.950% dated 05/28/04, matures 06/01/04, repurchase price $60,641,645 (collateralized by U.S. Treasury obligations: total market value $61,850,036) (B) 60,637 60,637 Merrill Lynch 0.950% dated 05/28/04, matures 06/01/04, repurchase price $60,495,198 (collateralized by U.S. Treasury obligations: total market value $61,701,621) (B) 60,491 60,491 29 SCHEDULE OF INVESTMENTS/STATEMENT OF NET ASSETS - -------------------------------------------------------------------------------- STI CLASSIC FUNDS MAY 31, 2004 U.S. TREASURY MONEY MARKET FUND -- concluded - ---------------------------------------------------------- FACE AMOUNT (000) VALUE (000) - ---------------------------------------------------------- REPURCHASE AGREEMENTS -- CONTINUED Morgan Stanley Dean Witter 0.960% dated 05/28/04, matures 06/01/04, repurchase price $61,008,073 (collateralized by U.S. Treasury obligations: total market value $62,223,450) (B) $ 61,003 $ 61,003 UBS Warburg 0.970% dated 05/28/04, matures 06/01/04, repurchase price $43,344,539 (collateralized by U.S. Treasury obligations: total market value $44,210,805) (B) 43,341 43,341 ---------- Total Repurchase Agreements (Cost $849,263) 849,263 ---------- Total Investments (100.9%) (Cost $1,244,865) $1,244,865 ========== PERCENTAGES ARE BASED UPON NET ASSETS OF $1,233,966,084. THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS. FOR DESCRIPTIONS OF ABBREVIATIONS AND FOOTNOTES, PLEASE SEE PAGE 37. 30 - -------------------------------------------------------------------------------- VIRGINIA TAX-FREE MONEY MARKET FUND - ---------------------------------------------------------- FACE AMOUNT (000) VALUE (000) - ---------------------------------------------------------- MUNICIPAL BONDS (98.9%) VIRGINIA (95.4%) Albemarle County, Industrial Development Authority, Eldercare Gardens Project, RB (LOC: Bank of America) (C) (D) 1.070%, 12/01/05 $ 2,445 $ 2,445 Albemarle County, Industrial Development Authority, University of Virginia Health Services Project, RB (LOC: First Union National Bank) (C) (D) 1.070%, 10/01/22 6,360 6,360 Alexandria, Industrial Development Authority, Alexandria County Day School, RB (LOC: First Union National Bank) (C) (D) 1.120%, 06/01/25 4,400 4,400 Alexandria, Industrial Development Authority, American Red Cross Project, RB (LOC: First Union National Bank) (C) (D) 1.120%, 01/01/09 2,515 2,515 Alexandria, Industrial Development Authority, Association for Supervision & Currency Project, RB (LOC: First Union National Bank) (C) (D) 1.070%, 07/01/23 1,485 1,485 - ---------------------------------------------------------- FACE AMOUNT (000) VALUE (000) - ---------------------------------------------------------- VIRGINIA -- CONTINUED Alexandria, Industrial Development Authority, Pooled Loan Program, Sub- Ser A, RB (LOC: Bank of America) (C) (D) 1.070%, 07/01/26 $ 1,000 $ 1,000 Alexandria, Redevelopment & Housing Authority, Ser PT 1444, RB (C) (D) 1.160%, 12/01/04 1,000 1,000 Arlington County, Ballston Public Parking Project, RB (LOC: Citibank) (C) (D) 1.070%, 08/01/17 7,000 7,000 Ashland, Industrial Development Authority, Health & Community Services Facilities Authority, YMCA Greater Richmond Project, Ser A, RB (LOC: First Union National Bank) (C) (D) 1.070%, 11/01/20 8,740 8,740 Ashland, Industrial Development Authority, Interflex Group Project, RB, AMT (LOC: First Union National Bank) (C) (D) 1.200%, 07/01/19 5,400 5,400 Charles City County, Economic Development Authority, Waste Management Inc. Project, RB (LOC: JP Morgan Chase) (C) (D) 1.120%, 02/01/29 4,000 4,000 31 STATEMENT OF NET ASSETS - -------------------------------------------------------------------------------- STI CLASSIC FUNDS MAY 31, 2004 VIRGINIA TAX-FREE MONEY MARKET FUND -- CONTINUED - ---------------------------------------------------------- FACE AMOUNT (000) VALUE (000) - ---------------------------------------------------------- VIRGINIA -- CONTINUED Chesapeake Bay, Bridge & Tunnel Community District Authority, General Resolution Project, RB, MBIA (C) (D) 1.120%, 07/01/25 $ 6,755 $ 6,755 Chesterfield County, Industrial Development Authority, Virginia State University Real Estate, Ser A, RB (LOC: Bank of America) (C) (D) 1.077%, 07/01/29 1,265 1,265 Clark County, Industrial Development Authority, Winchester Medical Center Project, RB, FSA (C) (D) 1.080%, 01/01/30 10,000 10,000 Danville, Industrial Development Authority, Institute of Advanced Research Project, RB (LOC: Branch Banking & Trust) (C) (D) 1.100%, 08/01/12 3,640 3,640 Fairfax County, Economic Development Authority, Cable Access Recovery, Ser A, RB (LOC: First Union National Bank) (C) (D) 1.170%, 05/01/25 1,265 1,265 Fairfax County, Economic Development Authority, Flint Hill School Project, RB (LOC: First Union National Bank) (C) (D) 1.100%, 09/01/21 4,760 4,760 - ---------------------------------------------------------- FACE AMOUNT (000) VALUE (000) - ---------------------------------------------------------- VIRGINIA -- CONTINUED Fairfax County, Industrial Development Authority, Fairfax Hospital Project, Ser B, RB (C) (D) 0.990%, 10/01/25 $ 2,000 $ 2,000 Fairfax County, Industrial Development Authority, Inova Services Project, Ser A, RB (C) (D) 0.990%, 01/15/22 1,000 1,000 Fairfax County, Ser 392, COP (C) (D) 1.110%, 04/15/32 6,990 6,990 Fairfax County, Water Authority, Municipal Trade Receipts Project, RB (C) (D) 1.110%, 04/01/30 7,850 7,850 Front Royal & Warren County, Industrial Development Authority, Warren Memorial Hospital Project, RB (LOC: Branch Banking & Trust) (C) (D) 1.100%, 05/01/23 580 580 Greenville County, Industrial Development Authority, Blue Ridge School Project, RB (LOC: Branch Banking & Trust) (C) (D) 1.100%, 06/01/26 5,900 5,900 Hampton, Redevelopment & Housing Authority, Multi- Family Housing, Avalon Pointe Project, RB, AMT, FNMA (C) (D) 1.060%, 06/15/26 4,537 4,537 32 - -------------------------------------------------------------------------------- - ---------------------------------------------------------- FACE AMOUNT (000) VALUE (000) - ---------------------------------------------------------- VIRGINIA -- CONTINUED Hampton, Redevelopment & Housing Authority, Multi- Family Housing, Avalon at Hampton Inn Project, Ser A, RB (LOC: Credit Suisse First Boston) (C) (D) 1.050%, 06/15/26 $ 2,750 $ 2,750 Hanover County, Industrial Development Authority, Covenant Woods Project, RB (LOC: Branch Banking & Trust) (C) (D) 1.100%, 07/01/29 10,170 10,170 Henrico County, Economic Development Authority, Stewart School Project, RB (LOC: Branch Banking & Trust) (C) (D) 1.100%, 07/01/33 3,000 3,000 Loudoun County, Industrial Development Authority, Howard Hughes Medical Project, Ser D, RB (C) (D) 1.030%, 02/15/38 6,000 6,000 Loudoun County, Industrial Development Authority, Howard Hughes Medical Project, Ser F, RB (C) (D) 1.020%, 02/15/38 4,400 4,400 Louisa County, Industrial Development Authority, Pooled Financing Project, RB (LOC: Bank of America) (C) (D) 1.070%, 01/01/20 1,260 1,260 - ---------------------------------------------------------- FACE AMOUNT (000) VALUE (000) - ---------------------------------------------------------- VIRGINIA -- CONTINUED Lynchburg, Industrial Development Authority, Aerofin Project, RB, AMT (LOC: PNC Bank) (C) (D) 1.160%, 03/01/29 $ 2,075 $ 2,075 Lynchburg, Industrial Development Authority, Educational Facilities, Randolph Macon Project, RB (LOC: Wachovia Bank) (C) (D) 1.070%, 09/01/23 7,935 7,935 Newport News, Economic Development Authority, Jefferson Point Development Project, RB (LOC: Credit Suisse First Boston) (C) (D) 1.070%, 11/01/11 5,200 5,200 Newport News, Redevelopment & Housing Authority, Ser PT 1374, RB (C) (D) 1.100%, 07/01/25 9,135 9,135 Norfolk, Industrial Development Authority, Children's Hospital Facilities Project, RB (LOC: Wachovia Bank) (C) (D) 1.070%, 06/01/20 15,300 15,300 Norfolk, Redevelopment & Housing Authority, Old Dominion Project, RB (LOC: Bank of America) (C) (D) 1.070%, 08/01/33 3,000 3,000 33 STATEMENT OF NET ASSETS - -------------------------------------------------------------------------------- STI CLASSIC FUNDS MAY 31, 2004 VIRGINIA TAX-FREE MONEY MARKET FUND--CONTINUED - ---------------------------------------------------------- FACE AMOUNT (000) VALUE (000) - ---------------------------------------------------------- VIRGINIA -- CONTINUED Norfolk, Redevelopment & Housing Authority, Old Dominion University Project, Ser B, RB (LOC: Bank of America) (C) (D) 1.070%, 08/01/33 $ 4,400 $ 4,400 Norfolk, Ser 944601, GO (C) (D) 1.120%, 06/01/05 12,500 12,500 Orange County, Industrial Development Authority, Zamma Project, RB (LOC: SouthTrust Bank) (C) (D) 1.260%, 12/01/22 2,000 2,000 Peninsula, Ports Authority, Dominion Term Project, Ser C, RB (C) (D) 1.020%, 07/01/16 1,805 1,805 Peninsula, Ports Authority, Riverside Health Systems Project, RB (C) (D) 1.100%, 07/01/37 5,000 5,000 Portsmouth, Industrial Development Authority, Fairwood Homes Project, Ser A, RB (LOC: Bank of America) (C) (D) 1.080%, 11/01/27 2,720 2,720 Prince Edward County, Industrial Development Authority, Eldercare of Virginia Project, RB (LOC: Bank of America) (C) (D) 1.070%, 08/01/05 2,050 2,050 - ---------------------------------------------------------- FACE AMOUNT (000) VALUE (000) - ---------------------------------------------------------- VIRGINIA -- CONTINUED Prince George County, Industrial Development Authority, Metropolitan Span Project, RB, AMT (LOC: Bank One Texas) (C) (D) 1.270%, 09/01/19 $ 5,155 $ 5,155 Richmond, Redevelopment & Multi-Family Housing Authority, Belmont Apartments Project, RB (LOC: First Union National Bank) (C) (D) 1.070%, 04/01/07 1,840 1,840 Roanoke, Industrial Development Authority, Hollins University Project, RB (LOC: First Union National Bank) (C) (D) 1.070%, 05/01/15 5,500 5,500 University of Virginia, Ser A, RB (C) (D) 1.030%, 06/01/34 11,000 11,000 Virginia Beach, Development Authority, Multi-Family Housing, Ser PT 1146, RB (C) (D) 1.110%, 07/01/06 6,000 6,000 Virginia Beach, Industrial Development Authority, Ocean Ranch Project, RB (LOC: Branch Banking & Trust) (C) (D) 1.100%, 07/01/17 1,815 1,815 Virginia State, Commonwealth Transportation Board Authority, Ser SG 134, RB (C) (D) 1.100%, 05/15/22 2,600 2,600 34 - ---------------------------------------------------------- FACE AMOUNT (000) VALUE (000) - ---------------------------------------------------------- VIRGINIA -- CONTINUED Virginia State, Housing Development Authority, Sub- Ser I-1, RB, AMT (C) (D) 3.750%, 01/01/05 $ 1,000 $ 1,014 Virginia State, Port Authority, Ser SG 111, RB (C) (D) 1.150%, 07/01/24 14,705 14,705 Virginia State, Public Building Authority, Ser 131, RB, MBIA (C) (D) 1.110%, 08/01/19 1,785 1,785 Virginia State, Public School Authority, Ser 431, RB (C) (D) 1.080%, 08/01/06 2,500 2,500 Virginia State, Public School Authority, Ser A PT 1619, RB (C) (D) 1.080%, 08/01/17 8,535 8,535 Virginia State, Resource Authority, Clean Water Project, Ser PA 790, RB (C) (D) 1.100%, 10/01/16 1,800 1,800 Virginia State, Small Business Financing Authority, Clark County Industrial Development Project, RB, AMT (LOC: Branch Banking & Trust) (C) (D) 1.200%, 07/01/25 1,785 1,785 Virginia State, Transportation Board Authority, Eagle Trust, Ser 994601, RB (C) (D) 1.120%, 05/15/19 10,560 10,560 - ---------------------------------------------------------- FACE AMOUNT (000) VALUE (000) - ---------------------------------------------------------- VIRGINIA -- CONTINUED Williamsburg, Industrial Development Authority, Colonial Williamsburg Museum Foundation Project, RB (LOC: Bank of America) (C) (D) 1.070%, 12/01/18 $ 600 $ 600 -------- 278,781 -------- PUERTO RICO (3.5%) Puerto Rico Commonwealth, Highway & Transportation Authority, RB, MBIA (C) (D) 1.050%, 07/01/26 1,800 1,800 Puerto Rico Commonwealth, Highway And Transportation Authority, RB, FSA (C) (D) 1.050%, 07/01/18 995 995 Puerto Rico Commonwealth, Ser PT-700, RB (C) (D) 1.050%, 07/01/16 2,000 2,000 Puerto Rico, Electric Power Authority, RB (C) (D) 1.050%, 07/01/16 2,500 2,500 Puerto Rico, Municipal Financial Authority (C) (D) 1.050%, 08/01/19 3,000 3,000 -------- 10,295 -------- Total Municipal Bonds (Cost $289,076) 289,076 -------- 35 STATEMENT OF NET ASSETS - -------------------------------------------------------------------------------- STI CLASSIC FUNDS MAY 31, 2004 VIRGINIA TAX-FREE MONEY MARKET FUND--CONCLUDED - ---------------------------------------------------------- SHARES VALUE (000) - ---------------------------------------------------------- CASH EQUIVALENT (1.0%) Federated Virginia Municipal Cash Trust, Institutional Class 2,921,338 $ 2,921 -------- Total Cash Equivalent (Cost $2,921) 2,921 -------- Total Investments (99.9%) (Cost $291,997) 291,997 -------- OTHER ASSETS AND LIABILITIES (0.1%) Receivable from Affiliated Funds 1 Investment Advisory Fees Payable (101) Administration Fees Payable (17) Custodian Fees Payable (1) Distribution Fees Payable (17) Transfer Agent Shareholder Servicing Fees Payable (1) Other Assets and Liabilities, Net 437 -------- Total Other Assets and Liabilities 301 -------- - ---------------------------------------------------------- VALUE (000) - ---------------------------------------------------------- NET ASSETS: Paid in Capital -- T Shares (unlimited authorization -- no par value) based on 173,926,194 outstanding shares of beneficial interest $173,920 Paid in Capital -- A Shares (unlimited authorization -- no par value) based on 118,306,519 outstanding shares of beneficial interest 118,313 Accumulated net realized gain on investments 65 -------- Total Net Assets (100.0%) $292,298 ======== Net Asset Value, Offering and Redemption Price Per Share -- T Shares ($173,958,738 / 173,926,194 shares) $ 1.00 ======== Net Asset Value, Offering and Redemption Price Per Share -- A Shares ($118,339,269 / 118,306,519 shares) $ 1.00 ======== THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS. FOR DESCRIPTIONS OF ABBREVIATIONS AND FOOTNOTES, PLEASE SEE PAGE 37. 36 - -------------------------------------------------------------------------------- KEY TO ABBREVIATIONS AND FOOTNOTES USED IN THE STATEMENTS OF NET ASSETS/SCHEDULE OF INVESTMENTS AMBAC Security insured by the American Municipal Bond Assurance Corporation AMT Alternative Minimum Tax BAN Bond Anticipation Note Cl Class COP Certificate of Participation FFCB Federal Farm Credit Bank FGIC Security insured by the Financial Guaranty Insurance Company FHLB Federal Home Loan Bank FHLMC Federal Home Loan Mortgage Corporation FNMA Federal National Mortgage Association FRMMT Farmer Mac Medium Term Note FSA Security insured by Financial Securities Assurance GNMA Government National Mortgage Association GO General Obligation LOC Letter of Credit MBIA Security insured by the Municipal Bond Insurance Association MTN Medium Term Note RB Revenue Bond Ser Series SLMA Student Loan Marketing Association SPA Special Assessment (A) Securities sold within terms of a private placement memorandum, exempt from registration under section 144a of the Securities Act of 1933, as amended, and may be sold only to dealers in that program or other "accredited investors". (B) Tri-Party Repurchase Agreement (C) Adjustable rate security. The rate reported on the Statement of Net Assets is the rate in effect on May 31, 2004. (D) Demand and interest rate reset features give these securities a shorter effective maturity date. (E) The rate shown is the effective yield at the time of purchase. (1) L Shares have a contingent deferred sales charge. For a description of a possible sales charge, see the prospectus. 37 This page intentionally left blank STATEMENT OF ASSETS & LIABILITIES (000) - -------------------------------------------------------------------------------- STI CLASSIC FUNDS MAY 31, 2004
U.S. TREASURY MONEY MARKET FUND ------------- Assets: Investments, excluding Repurchase Agreements, at Market Value (Cost $395,602) ... $ 395,602 Repurchase Agreements (Cost $849,263) ........................................... 849,263 Receivable for Investment Securities Sold ....................................... 113,000 Income Receivable ............................................................... 2,723 Receivable from Affiliated Funds ................................................ 3 Receivable from Distributor ..................................................... 1 Prepaid Expenses ................................................................ 38 ----------- Total Assets .................................................................... 1,360,630 ----------- Liabilities: Payable for Investment Securities Purchased ..................................... 125,621 Income Distribution Payable ..................................................... 298 Investment Advisory Fee Payable ................................................. 598 Administration Fees Payable ..................................................... 73 Transfer Agent Shareholder Servicing Fees ....................................... 5 Custody Fees Payable ............................................................ 6 Payable to Adviser .............................................................. 3 Trustees' Fees Payable .......................................................... 1 Accrued Expenses ................................................................ 59 ----------- Total Liabilities ............................................................... 126,664 ----------- Total Net Assets ................................................................ $1,233,966 =========== Net Assets: Paid in Capital-- T Shares (unlimited authorization-- no par value) based on 1,233,170,054 outstanding shares of beneficial interest .............. $1,233,170 Paid in Capital-- A Shares (unlimited authorization-- no par value) based on 400,787 outstanding shares of beneficial interest ................... 401 Distributions in Excess of Net Investment Income ................................ (21) Accumulated Net Realized Gain on Investments .................................... 416 ----------- Total Net Assets ................................................................ $1,233,966 =========== Net Asset Value, Offering and Redemption Price Per Share -- T Shares ($1,233,565,295 / 1,233,170,054 shares) ....................................... $1.00 =========== Net Asset Value, Offering and Redemption Price Per Share -- A Shares ($400,789 / 400,787 shares) ................................................... $1.00 ===========
39 STATEMENTS OF OPERATIONS (000) - -------------------------------------------------------------------------------- STI CLASSIC FUNDS FOR THE YEAR ENDED MAY 31, 2004
TAX-EXEMPT U.S. GOVERNMENT VIRGINIA PRIME QUALITY MONEY SECURITIES U.S. TREASURY TAX-FREE MONEY MARKET MARKET MONEY MARKET MONEY MONEY MARKET FUND FUND FUND MARKET FUND FUND ------------- ---------- --------------- ------------- ------------ Investment Income: Interest Income ......................... $ 64,117 $ 13,442 $ 10,191 $ 10,997 $ 3,171 Dividend Income ......................... 2,346 258 -- -- 33 -------- -------- -------- -------- -------- Total Investment Income ................. 66,463 13,700 10,191 10,997 3,204 -------- -------- -------- -------- -------- Expenses: Investment Advisory Fees ................ 37,505 7,476 6,110 7,356 1,269 Administration Fees ..................... 3,954 932 644 776 217 Distribution Fees -- A Shares ............ 3,763 401 399 -- 439 Distribution Fees -- L Shares ............ 184 -- -- -- -- Transfer Agent Shareholder Servicing Fees 154 36 25 30 8 Custodian Fees .......................... 183 33 22 28 8 Trustee Fees ............................ 61 14 10 12 3 Professional Fees ....................... 226 55 34 48 13 Registration Fees ....................... 196 46 39 35 10 Printing Expenses ....................... 174 44 24 37 10 Transfer Agent Fees -- T Shares .......... 17 16 16 16 16 Transfer Agent Fees -- A Shares .......... 26 13 15 5 12 Transfer Agent Fees -- L Shares .......... 23 -- -- -- -- Transfer Agent Out of Pocket Expenses ... 191 45 31 38 11 Insurance and Other Fees ................ 189 40 24 50 6 -------- -------- -------- -------- -------- Total Expenses .......................... 46,846 9,151 7,393 8,431 2,022 -------- -------- -------- -------- -------- Less: Investment Advisory Fees Waived ....................... (6,339) (1,342) (843) (1,016) -- Distribution Fees Waived/ Reimbursement from Distributor -- A Shares .......................... (450) (74) (64) (5) (254) Distribution Fees Waived -- L Shares .......................... (135) -- -- -- -- -------- -------- -------- -------- -------- Net Expenses ............................ 39,922 7,735 6,486 7,410 1,768 -------- -------- -------- -------- -------- Net Investment Income ...................... 26,541 5,965 3,705 3,587 1,436 -------- -------- -------- -------- -------- Net Realized Gain on Securities Sold ......................... 655 353 27 628 87 -------- -------- -------- -------- -------- Net Increase in Net Assets from Operations ......................... $ 27,196 $ 6,318 $ 3,732 $ 4,215 $ 1,523 ======== ======== ======== ======== ========
Amounts designated as "--" are either $0 or round to $0. THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS. 40 STATEMENTS OF CHANGES IN NET ASSETS (000) - -------------------------------------------------------------------------------- STI CLASSIC FUNDS FOR THE YEARS ENDED MAY 31,
U.S. GOVERNMENT PRIME QUALITY TAX-EXEMPT SECURITIES MONEY MARKET FUND MONEY MARKET FUND MONEY MARKET FUND -------------------------- ------------------------- -------------------------- 06/01/03- 06/01/02- 06/01/03- 06/01/02- 06/01/03- 06/01/02- 05/31/04 05/31/03 05/31/04 05/31/03 05/31/04 05/31/03 ----------- ----------- ----------- ----------- ----------- ----------- Operations: Net Investment Income ...................... $ 26,541 $ 65,189 $ 5,965 $ 9,430 $ 3,705 $ 11,619 Net Realized Gain (Loss) on Investments Sold 655 (79) 353 145 27 -- ----------- ----------- ----------- ----------- ----------- ----------- Net Increase in Net Assets from Operations .......................... 27,196 65,110 6,318 9,575 3,732 11,619 ----------- ----------- ----------- ----------- ----------- ----------- Dividends and Distributions to Shareholders: Net Investment Income: T Shares ................................. (20,077) (46,605) (5,054) (7,837) (3,043) (9,571) A Shares ................................. (6,411) (18,499) (911) (1,593) (662) (2,048) L Shares ................................. (53) (85) -- -- -- -- Capital Gains: T Shares ................................. (79) (495) (110) (103) -- -- A Shares ................................. (38) (240) (26) (31) -- -- L Shares ................................. -- (2) -- -- -- -- ----------- ----------- ----------- ----------- ----------- ----------- Total Dividends and Distributions ......... (26,658) (65,926) (6,101) (9,564) (3,705) (11,619) ----------- ----------- ----------- ----------- ----------- ----------- Capital Transactions (1): T Shares: Proceeds from Shares Issued .............. 3,517,343 4,749,028 1,424,246 1,422,487 1,110,958 966,202 Reinvestment of Cash Distributions ....... 1,743 3,794 -- -- 406 1,240 Cost of Shares Redeemed .................. (4,326,125) (4,375,170) (1,534,286) (1,241,913) (1,488,621) (972,641) ----------- ----------- ----------- ----------- ----------- ----------- Increase (Decrease) in Net Assets From T Share Transactions ..................... (807,039) 377,652 (110,040) 180,574 (377,257) (5,199) ----------- ----------- ----------- ----------- ----------- ----------- A Shares (2): Proceeds from Shares Issued .............. 1,045,548 1,009,181 361,662 247,204 352,303 439,242 Reinvestment of Cash Distributions ....... 6,441 18,722 937 1,624 659 2,037 Cost of Shares Redeemed .................. (1,126,059) (989,190) (327,551) (227,422) (369,114) (401,037) ----------- ----------- ----------- ----------- ----------- ----------- Increase (Decrease) in Net Assets From A Share Transactions ..................... (74,070) 38,713 35,048 21,406 (16,152) 40,242 ----------- ----------- ----------- ----------- ----------- ----------- L Shares: Proceeds from Shares Issued .............. 56,986 26,381 -- -- -- -- Reinvestment of Cash Distributions ....... 43 75 -- -- -- -- Cost of Shares Redeemed .................. (46,221) (24,123) -- -- -- -- ----------- ----------- ----------- ----------- ----------- ----------- Increase in Net Assets From L Share Transactions ..................... 10,808 2,333 -- -- -- -- ----------- ----------- ----------- ----------- ----------- ----------- Increase (Decrease) in Net Assets From Share Transactions .................. (870,301) 418,698 (74,992) 201,980 (393,409) 35,043 ----------- ----------- ----------- ----------- ----------- ----------- Total Increase (Decrease) in Net Assets ............................. (869,763) 417,882 (74,775) 201,991 (393,382) 35,043 ----------- ----------- ----------- ----------- ----------- ----------- Net Assets: Beginning of Year .......................... 6,224,420 5,806,538 1,327,866 1,125,875 1,242,806 1,207,763 ----------- ----------- ----------- ----------- ----------- ----------- End of Year ................................ $ 5,354,657 $ 6,224,420 $ 1,253,091 $ 1,327,866 $ 849,424 $ 1,242,806 =========== =========== =========== =========== =========== =========== Undistributed (Distributions in Excess of) Net Investment Income ................ $ (65) $ (65) $ -- $ -- $ 11 $ -- =========== =========== =========== =========== =========== ===========
U.S. TREASURY VIRGINIA TAX-FREE MONEY MARKET FUND MONEY MARKET FUND -------------------------- -------------------------- 06/01/03- 06/01/02- 06/01/03- 06/01/02- 05/31/04 05/31/03 05/31/04 05/31/03 ----------- ----------- ----------- ----------- Operations: Net Investment Income ...................... $ 3,587 $ 7,887 $ 1,436 $ 2,611 Net Realized Gain (Loss) on Investments Sold 628 500 87 107 ----------- ----------- ----------- ----------- Net Increase in Net Assets from Operations .......................... 4,215 8,387 1,523 2,718 ----------- ----------- ----------- ----------- Dividends and Distributions to Shareholders: Net Investment Income: T Shares ................................. (3,589) (7,887) (1,059) (1,959) A Shares ................................. (1) -- (377) (652) L Shares ................................. -- -- -- -- Capital Gains: T Shares ................................. (590) (442) (80) (5) A Shares ................................. -- -- (44) (2) L Shares ................................. -- -- -- -- ----------- ----------- ----------- ----------- Total Dividends and Distributions ......... (4,180) (8,329) (1,560) (2,618) ----------- ----------- ----------- ----------- Capital Transactions (1): T Shares: Proceeds from Shares Issued .............. 1,849,253 1,327,065 263,166 341,280 Reinvestment of Cash Distributions ....... 53 96 129 184 Cost of Shares Redeemed .................. (1,696,555) (1,118,386) (309,014) (362,518) ----------- ----------- ----------- ----------- Increase (Decrease) in Net Assets From T Share Transactions ..................... 152,751 208,775 (45,719) (21,054) ----------- ----------- ----------- ----------- A Shares (2): Proceeds from Shares Issued .............. 400 -- 133,175 114,606 Reinvestment of Cash Distributions ....... 1 -- 421 654 Cost of Shares Redeemed .................. -- -- (111,568) (118,102) ----------- ----------- ----------- ----------- Increase (Decrease) in Net Assets From A Share Transactions ..................... 401 -- 22,028 (2,842) ----------- ----------- ----------- ----------- L Shares: Proceeds from Shares Issued .............. -- -- -- -- Reinvestment of Cash Distributions ....... -- -- -- -- Cost of Shares Redeemed .................. -- -- -- -- ----------- ----------- ----------- ----------- Increase in Net Assets From L Share Transactions ..................... -- -- -- -- ----------- ----------- ----------- ----------- Increase (Decrease) in Net Assets From Share Transactions .................. 153,152 208,775 (23,691) (23,896) ----------- ----------- ----------- ----------- Total Increase (Decrease) in Net Assets ............................. 153,187 208,833 (23,728) (23,796) ----------- ----------- ----------- ----------- Net Assets: Beginning of Year .......................... 1,080,779 871,946 316,026 339,822 ----------- ----------- ----------- ----------- End of Year ................................ $ 1,233,966 $ 1,080,779 $ 292,298 $ 316,026 =========== =========== =========== =========== Undistributed (Distributions in Excess of) Net Investment Income ................ $ (21) $ (18) $ -- $ -- =========== =========== =========== =========== (1) For Capital Share Transactions see Note 5 in the Notes to Financial Statements. (2) U.S. Treasury Money Market Fund A Shares commenced operations on November 12, 2003. Amounts designated as "--" are either $0 or round to $0.
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS. 41 FINANCIAL HIGHLIGHTS - -------------------------------------------------------------------------------- STI CLASSIC FUNDS FOR THE PERIODS ENDED MAY 31, FOR A SHARE OUTSTANDING THROUGHOUT THE PERIOD
NET NET REALIZED TOTAL DISTRIBUTIONS NET ASSET VALUE, INVESTMENT GAIN (LOSS) FROM DIVIDENDS FROM FROM REALIZED BEGINNING OF PERIOD INCOME ON INVESTMENTS OPERATIONS NET INVESTMENT INCOME CAPITAL GAINS ------------------- ---------- -------------- ---------- --------------------- ------------- PRIME QUALITY MONEY MARKET FUND T Shares 2004 $1.00 $0.01 $-- $0.01 $(0.01) $--* 2003 1.00 0.01 -- 0.01 (0.01) --* 2002 1.00 0.02 -- 0.02 (0.02) -- 2001 1.00 0.06 -- 0.06 (0.06) -- 2000 1.00 0.05 -- 0.05 (0.05) -- A Shares 2004 $1.00 $ -- $-- $ -- $ --* $--* 2003 1.00 0.01 -- 0.01 (0.01) --* 2002 1.00 0.02 -- 0.02 (0.02) -- 2001 1.00 0.05 -- 0.05 (0.05) -- 2000 1.00 0.05 -- 0.05 (0.05) -- L Shares 2004 $1.00 $ -- $-- $ -- $ --* $--* 2003 1.00 0.01 -- 0.01 (0.01) --* 2002 1.00 0.01 -- 0.01 (0.01) -- 2001 1.00 0.05 -- 0.05 (0.05) -- 2000 (A) 1.00 0.03 -- 0.03 (0.03) -- TAX-EXEMPT MONEY MARKET FUND T Shares 2004 $1.00 $ -- $-- $ -- $ --* $--* 2003 1.00 0.01 -- 0.01 (0.01) --* 2002 1.00 0.01 -- 0.01 (0.01) --* 2001 1.00 0.03 -- 0.03 (0.03) -- 2000 1.00 0.03 -- 0.03 (0.03) -- A Shares 2004 $1.00 $ -- $-- $ -- $ --* $--* 2003 1.00 0.01 -- 0.01 (0.01) --* 2002 1.00 0.01 -- 0.01 (0.01) --* 2001 1.00 0.03 -- 0.03 (0.03) -- 2000 1.00 0.03 -- 0.03 (0.03) --
RATIO OF TOTAL NET ASSET NET ASSETS, RATIO OF NET NET INVESTMENT DIVIDENDS VALUE, END TOTAL END OF EXPENSES TO INCOME TO AND DISTRIBUTIONS OF PERIOD RETURN+ PERIOD (000) AVERAGE NET ASSETS AVERAGE NET ASSETS ----------------- ---------- ------- ------------ ------------------ ------------------ PRIME QUALITY MONEY MARKET FUND T Shares 2004 $(0.01) $1.00 0.52% $3,477,598 0.63% 0.52% 2003 (0.01) 1.00 1.17 4,284,266 0.63 1.14 2002 (0.02) 1.00 2.29 3,907,203 0.63 2.22 2001 (0.06) 1.00 5.75 3,728,371 0.63 5.57 2000 (0.05) 1.00 5.20 3,311,229 0.60 5.06 A Shares 2004 $ --* $1.00 0.34% $1,851,615 0.81% 0.34% 2003 (0.01) 1.00 0.98 1,925,521 0.81 0.96 2002 (0.02) 1.00 2.11 1,887,033 0.81 2.09 2001 (0.05) 1.00 5.57 1,927,309 0.80 5.36 2000 (0.05) 1.00 5.02 1,312,653 0.77 4.94 L Shares 2004 $ --* $1.00 0.22% $ 25,444 0.93% 0.21% 2003 (0.01) 1.00 0.54 14,633 1.25 0.53 2002 (0.01) 1.00 1.36 12,302 1.54 1.04 2001 (0.05) 1.00 4.75 4,051 1.53 4.54 2000 (A) (0.03) 1.00 2.93 3,445 1.50 4.46 TAX-EXEMPT MONEY MARKET FUND T Shares 2004 $ --* $1.00 0.48% $ 978,548 0.55% 0.46% 2003 (0.01) 1.00 0.81 1,088,415 0.54 0.79 2002 (0.01) 1.00 1.38 907,827 0.55 1.39 2001 (0.03) 1.00 3.47 1,080,362 0.54 3.40 2000 (0.03) 1.00 3.19 755,858 0.52 3.16 A Shares 2004 $ --* $1.00 0.35% $ 274,543 0.67% 0.34% 2003 (0.01) 1.00 0.68 239,451 0.67 0.67 2002 (0.01) 1.00 1.26 218,048 0.67 1.25 2001 (0.03) 1.00 3.35 256,894 0.67 3.22 2000 (0.03) 1.00 3.07 125,500 0.64 3.01
RATIO OF EXPENSES TO AVERAGE NET ASSETS (EXCLUDING WAIVERS) ------------------- PRIME QUALITY MONEY MARKET FUND T Shares 2004 0.74% 2003 0.74 2002 0.74 2001 0.75 2000 0.75 A Shares 2004 0.95% 2003 0.94 2002 0.94 2001 0.95 2000 0.95 L Shares 2004 1.59% 2003 1.62 2002 1.70 2001 1.92 2000 (A) 1.99 TAX-EXEMPT MONEY MARKET FUND T Shares 2004 0.64% 2003 0.64 2002 0.65 2001 0.65 2000 0.66 A Shares 2004 0.80% 2003 0.79 2002 0.80 2001 0.80 2000 0.82 + Returns are for the period indicated and have not been annualized. Returns shown do not reflect the deduction of taxes the shareholder may pay on fund distributions or redemption of fund shares. * Amount represents less than $0.01 per share. (A) Commenced operations on October 4, 1999. All ratios for the period have been annualized. Amounts designated as "--" are either $0 or have been rounded to $0.
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS. 42 - 43 FINANCIAL HIGHLIGHTS - -------------------------------------------------------------------------------- STI CLASSIC FUNDS FOR THE PERIODS ENDED MAY 31, FOR A SHARE OUTSTANDING THROUGHOUT THE PERIOD
NET NET REALIZED TOTAL DISTRIBUTIONS NET ASSET VALUE, INVESTMENT GAIN (LOSS) FROM DIVIDENDS FROM FROM REALIZED BEGINNING OF PERIOD INCOME ON INVESTMENTS OPERATIONS NET INVESTMENT INCOME CAPITAL GAINS ------------------- ---------- -------------- ---------- --------------------- ------------- U.S. GOVERNMENT SECURITIES MONEY MARKET FUND T Shares 2004 $1.00 $ -- $-- $ -- $ --* $-- 2003 1.00 0.01 -- 0.01 (0.01) -- 2002 1.00 0.02 -- 0.02 (0.02) -- 2001 1.00 0.05 -- 0.05 (0.05) -- 2000 1.00 0.05 -- 0.05 (0.05) -- A Shares 2004 $1.00 $ -- $-- $ -- $ --* $-- 2003 1.00 0.01 -- 0.01 (0.01) -- 2002 1.00 0.02 -- 0.02 (0.02) -- 2001 1.00 0.05 -- 0.05 (0.05) -- 2000 1.00 0.05 -- 0.05 (0.05) -- U.S. TREASURY MONEY MARKET FUND T Shares 2004 $1.00 $ -- $-- $ -- $ --* $--* 2003 1.00 0.01 -- 0.01 (0.01) --* 2002 1.00 0.02 -- 0.02 (0.02) -- 2001 1.00 0.05 -- 0.05 (0.05) -- 2000 1.00 0.05 -- 0.05 (0.05) -- A Shares 2004(A) $1.00 $ -- $-- $ -- $ --* $--* VIRGINIA TAX-FREE MONEY MARKET FUND T Shares 2004 $1.00 $0.01 $-- $0.01 $(0.01) $--* 2003 1.00 0.01 -- 0.01 (0.01) --* 2002 1.00 0.01 -- 0.01 (0.01) --* 2001 1.00 0.03 -- 0.03 (0.03) -- 2000 1.00 0.03 -- 0.03 (0.03) -- A Shares 2004 $1.00 $ -- $-- $ -- $ --* $--* 2003 1.00 0.01 -- 0.01 (0.01) --* 2002 1.00 0.01 -- 0.01 (0.01) --* 2001 1.00 0.03 -- 0.03 (0.03) -- 2000 1.00 0.03 -- 0.03 (0.03) --
RATIO OF TOTAL NET ASSET NET ASSETS, RATIO OF NET NET INVESTMENT DIVIDENDS VALUE, END TOTAL END OF EXPENSES TO INCOME TO AND DISTRIBUTIONS OF PERIOD RETURN+ PERIOD (000) AVERAGE NET ASSETS AVERAGE NET ASSETS ----------------- ---------- ------- ------------ ------------------ ------------------ U.S. GOVERNMENT SECURITIES MONEY MARKET FUND T Shares 2004 $ --* $1.00 0.43% $ 615,324 0.66% 0.43% 2003 (0.01) 1.00 1.01 992,560 0.65 1.00 2002 (0.02) 1.00 2.25 997,759 0.66 2.17 2001 (0.05) 1.00 5.56 805,285 0.65 5.29 2000 (0.05) 1.00 4.86 468,568 0.63 4.80 A Shares 2004 $ --* $1.00 0.28% $ 234,100 0.80% 0.28% 2003 (0.01) 1.00 0.86 250,246 0.80 0.86 2002 (0.02) 1.00 2.11 210,004 0.80 2.02 2001 (0.05) 1.00 5.41 158,087 0.79 5.14 2000 (0.05) 1.00 4.71 79,311 0.77 4.62 U.S. TREASURY MONEY MARKET FUND T Shares 2004 $ --* $1.00 0.37% $1,233,565 0.66% 0.32% 2003 (0.01) 1.00 0.88 1,080,779 0.65 0.81 2002 (0.02) 1.00 1.96 871,946 0.65 1.90 2001 (0.05) 1.00 5.36 733,768 0.66 5.23 2000 (0.05) 1.00 4.81 723,277 0.63 4.71 A Shares 2004(A) $ --* $1.00 0.15% $ 401 0.75% 0.21% VIRGINIA TAX-FREE MONEY MARKET FUND T Shares 2004 $(0.01) $1.00 0.56% $ 173,959 0.50% 0.51% 2003 (0.01) 1.00 0.85 219,701 0.49 0.84 2002 (0.01) 1.00 1.44 240,681 0.50 1.45 2001 (0.03) 1.00 3.51 226,188 0.50 3.45 2000 (0.03) 1.00 3.23 245,243 0.51 3.19 A Shares 2004 $ --* $1.00 0.38% $ 118,339 0.67% 0.34% 2003 (0.01) 1.00 0.67 96,325 0.67 0.66 2002 (0.01) 1.00 1.27 99,141 0.67 1.22 2001 (0.03) 1.00 3.35 93,004 0.66 3.28 2000 (0.03) 1.00 3.07 62,878 0.67 3.17
RATIO OF EXPENSES TO AVERAGE NET ASSETS (EXCLUDING WAIVERS) ------------------- U.S. GOVERNMENT SECURITIES MONEY MARKET FUND T Shares 2004 0.75% 2003 0.74 2002 0.75 2001 0.75 2000 0.74 A Shares 2004 0.92% 2003 0.92 2002 0.92 2001 0.93 2000 0.93 U.S. TREASURY MONEY MARKET FUND T Shares 2004 0.75% 2003 0.74 2002 0.74 2001 0.76 2000 0.74 A Shares 2004(A) 3.17%++ VIRGINIA TAX-FREE MONEY MARKET FUND T Shares 2004 0.50% 2003 0.49 2002 0.50 2001 0.50 2000 0.51 A Shares 2004 0.90% 2003 0.90 2002 0.90 2001 0.91 2000 0.73 + Returns are for the period indicated and have not been annualized. Returns shown do not reflect the deduction of taxes the shareholder may pay on fund distributions or redemption of fund shares. ++ Ratio reflects the impact of the initial low level of average net assets associated with commencement of operations. * Amount represents less than $0.01 per share. (A) Commenced operations on November 12, 2003. Amounts designated as "--" are either $0 or have been rounded to $0.
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS. 44 - 45 NOTES TO FINANCIAL STATEMENTS - -------------------------------------------------------------------------------- STI CLASSIC FUNDS MAY 31, 2004 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 45 funds as of May 31, 2004. The financial statements presented herein are those of the Prime Quality Money Market Fund, the Tax-Exempt Money Market Fund, the U.S. Government Securities Money Market Fund, the U.S. Treasury Money Market Fund and the Virginia Tax-Free Money Market Fund (each a "Fund" and collectively the "Funds"). The Funds may offer the following share classes: T shares, A shares and L 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 -- Investment securities are stated at amortized cost, which approximates market value. SECURITY TRANSACTIONS AND INVESTMENT INCOME -- Security transactions are accounted for on the date the security is purchased or sold (trade date). Interest income is recognized on an accrual basis. Costs used in determining net realized gains and losses on the sales of investment securities are those of the specific securities sold adjusted for the accretion and amortization of purchase discounts and premiums during the respective holding period. Purchase discounts and premiums on securities held by the Funds are accreted and amortized ratably to the next interest readjustment date, the date the principal owned can be recovered through demand, or the maturity date of the security and are included in interest income. REPURCHASE AGREEMENTS -- In connection with transactions involving repurchase agreements, a third party custodian bank takes possession of the underlying securities ("collateral"), the value of which exceeds the principal amount of the repurchase transaction, including accrued interest. In the event of default on the obligation to repurchase, each Fund has the right to liquidate the collateral and apply the proceeds in satisfaction of the obligation. In the event of default or bankruptcy by the counterparty to the agreement, realization and/or retention of the collateral or proceeds may be subject to legal proceedings. 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 46 - -------------------------------------------------------------------------------- expenses are pro-rated to the respective classes on the basis of relative net assets. CLASSES -- Income, non-class specific expenses and realized/unrealized gains and losses are allocated to the respective classes on the basis of the relative daily net assets. DIVIDENDS AND DISTRIBUTIONS TO SHAREHOLDERS -- Dividends and distributions to shareholders, which are determined in accordance with Federal tax regulations, are recorded on the ex-dividend date. Dividends from net investment income of each of the Funds are declared daily and paid monthly. Any net realized capital gains on sales of securities are distributed to shareholders at least annually. COMPENSATING BALANCES -- If a Fund has a cash overdraft in excess of $100,000 it is required to leave 110% in compensating balance with SunTrust Bank (the "Custodian"), the custodian for the Funds, on the following day. If a Fund has a positive cash balance in excess of $100,000 it is allowed to overdraw 90% of the balance with the Custodian, a wholly-owned subsidiary of SunTrust Banks, Inc., on the following business day. 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 agree- ments dated June 15, 1993, and last amended November 12, 2003. The Investment Adviser has voluntarily agreed to waive all or a portion of its fees (and to reimburse Fund expenses). Fee waivers and expense reimbursements are voluntary and may be terminated at any time. Under terms of the amended agreement, the Funds are charged the following annual fees based upon average daily net assets: MAXIMUM ANNUAL ADVISORY NET FEES FEE PAID -------- -------- Prime Quality Money Market Fund ... 0.65% 0.54% Tax-Exempt Money Market Fund ...... 0.55% 0.45% U.S. Government Securities Money Market Fund .............. 0.65% 0.56% U.S. Treasury Money Market Fund ... 0.65% 0.56% Virginia Tax-Free Money Market Fund 0.40% 0.40% ADMINISTRATION AGREEMENT -- The Trust and SEI Investments Global Funds Services (the "Administrator") are parties to an Administration Agreement dated May 29, 1995, as last amended February 28, 2004 under which the Administrator provides administrative services for an annual fee (expressed as a percentage of the combined average daily net assets of the Trust and STI Classic Variable Trust) of: 0.12% up to $1 billion, 0.09% on the next $4 billion, 0.07% on on the next $3 billion, 0.065% on the next $2 billion and 0.06% for over $10 billion. 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 this agreement for the T Shares of any Fund. The Distributor has voluntarily agreed to waive all or a portion of its fees (and to reimburse Fund expenses). Fee waivers and expense reimbursements are 47 NOTES TO FINANCIAL STATEMENTS (continued) - -------------------------------------------------------------------------------- STI CLASSIC FUNDS MAY 31, 2004 voluntary and may be terminated at any time.With respect to the A and L Shares, the Distributor receives amounts, pursuant to a Distribution Plan and (in the case of L Shares) a Distribution and Service Plan, as outlined in the tables below. MAXIMUM A SHARE DISTRIBUTION NET FEES FEE PAID ------------ -------- Prime Quality Money Market Fund ... 0.20% 0.18% Tax-Exempt Money Market Fund ...... 0.15% 0.12% U.S. Government Securities Money Market Fund .............. 0.17% 0.14% U.S. Treasury Money Market Fund ... 0.15% --% Virginia Tax-Free Money Market Fund 0.40% 0.17% MAXIMUM L SHARE DISTRIBUTION NET FEES AND SERVICE FEE PAID --------------- -------- Prime Quality Money Market Fund ... 0.75% 0.20% Tax-Exempt Money Market Fund ...... -- -- U.S. Government Securities Money Market Fund .............. -- -- U.S. Treasury Money Market Fund ... -- -- Virginia Tax-Free Money Market Fund -- -- TRANSFER AGENCY AGREEMENTS -- The Trust and Federated Services Company are parties to an Agreement for Shareholder Recordkeeping 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. These fees are presented on the Statement of Operations as Transfer Agent Shareholder Servicing Fees. CUSTODIAN AGREEMENT -- The custodian is paid on the basis of the net assets and transaction costs of the Funds. The custodian plays no role in determining the investment policies of the Trust or which securities are to be purchased or sold in the Funds. OTHER -- Certain officers of the Trust are also officers of the Adviser, Administrator and/or the Distributor. Such officers are paid no fees by the Trust for serving as officers of the Trust. The Trust has entered into an agreement with SunTrust Robinson Humphrey, a division of SunTrust Capital Markets, Inc. which is a direct non-bank subsidiary of SunTrust Banks, Inc. to act as an agent in placing repurchase agreements for the Trust. For the year ended May 31, 2004, the following Funds paid SunTrust Robinson Humphrey through a reduction in the yield earned by the Funds on those repurchase agreements: FEES -------- Prime Quality Money Market Fund ............ $ 46,404 U.S. Government Securities Money Market Fund 127,807 U.S. Treasury Money Market Fund ............ 423,336 4. 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 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 48 - -------------------------------------------------------------------------------- may be temporary or permanent. To the extent these differences are permanent in nature, they are charged or credited to paid-in-capital or accumulated net realized gain, as appropriate, in the period that the differences arise. Accordingly, the following differences as of May 31, 2004, primarily attributable to the classification of the short-term capital gains and ordinary income for tax purposes, have been reclassified to/from the following accounts (000): UNDISTRIBUTED ACCUMULATED NET INVESTMENT REALIZED INCOME LOSS -------------- ----------- U.S. Government Securities Money Market Fund ........... $11 $(11) The tax character of dividends and distributions declared during the years ended May 31, 2004 and 2003 were as follows (000):
ORDINARY INCOME TAX-EXEMPT LONG-TERM CAPITAL GAIN TOTALS 2004 2003 2004 2004 2004 2003 2004 2003 ------- ------- ------ ------ ---- ---- ------- ------- Prime Quality Money Market Fund ... $26,658 $65,926 $ -- $ -- $-- $-- $26,658 $65,926 Tax-Exempt Money Market Fund ...... 54 124 5,966 9,430 81 10 6,101 9,564 U.S. Government Securities Money Market Fund .............. 3,705 11,619 -- -- -- -- 3,705 11,619 U.S. Treasury Money Market Fund ... 4,174 8,329 -- -- 6 -- 4,180 8,329 Virginia Tax-Free Money Market Fund 28 3 1,436 2,611 96 4 1,560 2,618 Amounts designated as "--" are either $0 or have been rounded to $0.
As of May 31, 2004, the components of Distributable Earnings/(Accumulated Losses) on a tax basis were as follows (000):
TOTAL DISTRIBUTABLE UNDISTRIBUTED UNDISTRIBUTED OTHER EARNINGS/ ORDINARY LONG-TERM TEMPORARY (ACCUMULATED INCOME CAPITAL GAIN DIFFERENCES LOSSES) ------------- ------------ ----------- ------------- Prime Quality Money Market Fund ................. $ 13 $ -- $(46) $(33) Tax-Exempt Money Market Fund .................... 146 202 -- 348 U.S. Government Securities Money Market Fund .... 12 -- -- 12 U.S. Treasury Money Market Fund ................. 395 -- -- 395 Virginia Tax-Free Money Market Fund ............. 5 60 -- 65 Amounts designated as "--" are either $0 or have been rounded to $0.
For Federal income tax purposes, capital loss carryforwards can be carried forward for a maximum of eight years and applied against future capital gains. Post-October losses represent losses realized on investment transactions from November 1, 2003 through May 31, 2004 that, in accordance with Federal income tax regulations, the Fund may elect to defer and treat as having arisen in the following fiscal year. 49 NOTES TO FINANCIAL STATEMENTS (concluded) - -------------------------------------------------------------------------------- STI CLASSIC FUNDS MAY 31, 2004 5. Capital Share Transactions: Capital Share transactions for the Funds were as follows (000):
U.S. GOVERNMENT PRIME QUALITY TAX-EXEMPT SECURITIES MONEY MARKET FUND MONEY MARKET FUND MONEY MARKET FUND ------------------------ ------------------------ ------------------------ 06/01/03- 06/01/02- 06/01/03- 06/01/02- 06/01/03- 06/01/02- 05/31/04 05/31/03 05/31/04 05/31/03 05/31/04 05/31/03 ---------- ---------- ---------- ---------- ---------- ---------- Shares Issued and Redeemed: T Shares: Shares Issued ............................. 3,517,343 4,749,028 1,424,246 1,422,487 1,110,958 966,202 Shares Issued in Lieu of Cash Distributions 1,743 3,794 -- -- 406 1,240 Shares Redeemed ........................... (4,326,125) (4,375,170) (1,534,286) (1,241,913) (1,488,621) (972,641) ---------- ---------- ---------- ---------- ---------- ---------- Net T Share Transactions .................. (807,039) 377,652 (110,040) 180,574 (377,257) (5,199) ---------- ---------- ---------- ---------- ---------- ---------- A Shares: Shares Issued ............................. 1,045,548 1,009,181 361,662 247,204 352,303 439,242 Shares Issued in Lieu of Cash Distributions ..................... 6,441 18,722 937 1,624 659 2,037 Shares Redeemed ........................... (1,126,059) (989,190) (327,551) (227,422) (369,114) (401,037) ---------- ---------- ---------- ---------- ---------- ---------- Net A Share Transactions .................. (74,070) 38,713 35,048 21,406 (16,152) 40,242 ---------- ---------- ---------- ---------- ---------- ---------- L Shares: Shares Issued ............................. 56,986 26,381 -- -- -- -- Shares Issued in Lieu of Cash Distributions 43 75 -- -- -- -- Shares Redeemed ........................... (46,221) (24,123) -- -- -- -- ---------- ---------- ---------- ---------- ---------- ---------- Net L Share Transactions .................. 10,808 2,333 -- -- -- -- ---------- ---------- ---------- ---------- ---------- ---------- Net Change in Capital Shares .............. (870,301) 418,698 (74,992) 201,980 (393,409) 35,043 ========== ========== ========== ========== ========== ==========
U.S. TREASURY VIRGINIA TAX-FREE MONEY MARKET FUND MONEY MARKET FUND ------------------------ ------------------------ 06/01/03- 06/01/02- 06/01/03- 06/01/02- 05/31/04 05/31/03 05/31/04 05/31/03 ---------- ---------- ---------- ---------- Shares Issued and Redeemed: T Shares: Shares Issued ............................. 1,849,253 1,327,065 263,166 341,280 Shares Issued in Lieu of Cash Distributions 53 96 129 184 Shares Redeemed ........................... (1,696,555) (1,118,386) (309,014) (362,518) ---------- ---------- ---------- ---------- Net T Share Transactions .................. 152,751 208,775 (45,719) (21,054) ---------- ---------- ---------- ---------- A Shares: Shares Issued ............................. 400 -- 133,175 114,606 Shares Issued in Lieu of Cash Distributions ..................... 1 -- 421 654 Shares Redeemed ........................... -- -- (111,568) (118,102) ---------- ---------- ---------- ---------- Net A Share Transactions .................. 401 -- 22,028 (2,842) ---------- ---------- ---------- ---------- L Shares: Shares Issued ............................. -- -- -- -- Shares Issued in Lieu of Cash Distributions -- -- -- -- Shares Redeemed ........................... -- -- -- -- ---------- ---------- ---------- ---------- Net L Share Transactions .................. -- -- -- -- ---------- ---------- ---------- ---------- Net Change in Capital Shares .............. 153,152 208,775 (23,691) (23,896) ========== ========== ========== ==========
6. Concentrations/Risks: The Funds invest primarily in money market instruments maturing in 397 days or less whose ratings are within one of the two highest ratings categories assigned by a nationally recognized statistical rating agency, or, if not rated, are believed to be of comparable quality. The ability of the issuers of the securities held by the Funds to meet their obligations may be affected by economic developments in a specific industry, state or region. The Virginia Tax-Free Money Market Fund concentrates its investments in securities of issuers located in a specific region, subjecting the Fund to the economic and government policies of that region. Certain securities are backed by letters of credit from various financial institutions and financial guaranty assurance agencies. These letters of credit enhance the credit quality of the individual securities; however, if any of the financial institutions or financial guaranty assurance agencies' credit quality should deteriorate, it could cause the individual security's credit quality to change. Additionally, if any of the Funds concentrate their letters of credit in any one financial institution, the risk of credit quality deterioration increases. In the normal course of business, the Funds may 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. 7. Subsequent Event: Effective July 26, 2004, under separate administration, distribution and transfer agency agreements dated July 24, 2004, July 24, 2004, and July 23, 2004, respectively, BISYS Fund Services began providing administration, distribution and transfer agency services for the Funds. 50 REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM - -------------------------------------------------------------------------------- STI CLASSIC FUNDS MAY 31, 2004 To the Board of Trustees and Shareholders of STI Classic Funds: In our opinion, the accompanying statements of net assets of Prime Quality Money Market Fund, Tax-Exempt Money Market Fund, U.S. Government Securities Money Market Fund, and Virginia Tax-Free Money Market Fund and the statement of assets and liabilities, including the schedule of investments, of U.S. Treasury Money Market Fund (five of the forty-five funds constituting STI Classic Funds, hereafter referred to as the "Funds") and the related statements of operations and of changes in net assets and the financial highlights present fairly, in all material respects, the financial position of the Funds at May 31, 2004, the results of each of their operations for the year then ended, the changes in each of their net assets for each of the two years in the period then ended and the financial highlights for each of the three years in the period then ended, in conformity with accounting principles generally accepted in the United States of America. These financial statements and financial highlights (hereafter referred to as "financial statements") are the responsibility of the Funds' management; our responsibility is to express an opinion on these financial statements based on our audits. We conducted our audits of these financial statements in accordance with the standards of the Public Company Accounting Oversight Board (United States), which require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting principles used and significant estimates made by management, and evaluating the overall financial statement presentation. We believe that our audits, which included physical inspection of securities at May 31, 2004, provide a reasonable basis for our opinion. The financial highlights for each of the two years ended May 31, 2001 were audited by other independent accountants who have ceased operations. Those independent accountants expressed an unqualified opinion on those financial statements in their report dated July 18, 2001. PricewaterhouseCoopers LLP Philadelphia, Pennsylvania July 26, 2004 51
TRUSTEES AND OFFICERS OF THE STI CLASSIC FUNDS - ----------------------------------------------------------------------------------------------------------------------------- Information pertaining to the trustees and officers of the Trust is set forth below. Trustees who are not deemed to be "interested persons" of the Trust as defined in the 1940 Act are referred to as "Independent Trustees." Trustees who are deemed to be "interested persons" of the Trust are referred to as "Interested Trustees." Messrs. Courts and Ridley are Trustees who may be deemed to be "interested" persons of the Trust. - ----------------------------------------------------------------------------------------------------------------------------- TERM OF NUMBER OF OFFICE PORTFOLIOS AND PRINCIPAL IN STI CLASSIC NAME POSITION(S) LENGTH OF OCCUPATION(S) COMPLEX OTHER DIRECTORSHIPS ADDRESS, HELD WITH TIME DURING PAST OVERSEEN BY HELD BY AND AGE 1 THE TRUST SERVED 2 5 YEARS BOARD MEMBER 3 BOARD MEMBER 4 - ----------------------------------------------------------------------------------------------------------------------------- INTERESTED BOARD MEMBERS 5 - --------------- Richard W. Courts, II, Trustee Since Chairman of the Board, Atlantic 52 Current Trustee of STI 68 November, Investment Company, 1970 to the Classic Variable Trust. 2001 present. - ----------------------------------------------------------------------------------------------------------------------------- Clarence H. Ridley, 62 Trustee Since Chairman of the Board; Haverty 52 Current Trustee of STI November, Furniture Companies, 2001 to the Classic Variable Trust. 2001 present; Partner, King and Spaulding LLP (law firm), 1971 to 2000. - ----------------------------------------------------------------------------------------------------------------------------- INDEPENDENT BOARD MEMBERS - ------------- Thomas Gallagher, 56 Trustee Since President, Genuine Parts Company 52 Director, National Service May, 2000 Wholesale Distribution, 1970 to Industries; Director, Oxford the present. Industries. Current Trustee of STI Classic Variable Trust. - ----------------------------------------------------------------------------------------------------------------------------- F. Wendell Gooch, 71 Trustee Since Retired. 52 Current Trustee on the Board May, 1992 Board of Trustees for the SEI Family of Funds, The Capitol Mutual Funds and STI Classic Variable Trust. - ----------------------------------------------------------------------------------------------------------------------------- James O. Robbins, 62 Trustee Since President and Chief Executive 52 Director, NCR; Director, May, 2000 Officer, Cox Communications, Inc., Cox Communications, 1983 to the present. Current Trustee of STI Classic Variable Trust. - ----------------------------------------------------------------------------------------------------------------------------- Jonathan T. Walton, 74 Trustee Since Retired. 52 Trustee, W.K. Kellogg Trust. February, Current Trustee of STI 1998 Classic Variable Trust. - -----------------------------------------------------------------------------------------------------------------------------
52
- ----------------------------------------------------------------------------------------------------------------------- (UNAUDITED) - ----------------------------------------------------------------------------------------------------------------------- TERM OF NUMBER OF OFFICE PORTFOLIOS AND PRINCIPAL IN STI CLASSIC NAME POSITION(S) LENGTH OF OCCUPATION(S) COMPLEX OTHER DIRECTORSHIPS ADDRESS, HELD WITH TIME DURING PAST OVERSEEN BY HELD BY AND AGE 1 THE TRUST SERVED 2 5 YEARS BOARD MEMBER 3 BOARD MEMBER 4 - ----------------------------------------------------------------------------------------------------------------------- OFFICERS - -------- James Volk President Since SEI Investments since 1996; N/A N/A 41 November, Senior Operations Officer Fund 2003 Accounting and Administration, 1996-2004, Chief Accounting Officer, present ; Asst. Chief Accountant, U.S. Securities and Exchange Commission, 1993-1996; Audit Manager, Coopers & Lybrand LLP, 1985-1993. - ----------------------------------------------------------------------------------------------------------------------- Jennifer E. Spratley Treasurer Since Fund Accounting Director, N/A N/A 35 and CFO May, SEI Investment, 1999-present; 2000 Audit Manager, Ernst & Young LLP, 1991-1999. - ----------------------------------------------------------------------------------------------------------------------- Timothy D. Barto Vice President Since SEI Investments since 1999; N/A N/A 36 and Secretary November, General Counsel, Vice President 2001 and Secretary of the Administrator and Adviser, present; Associate, Dechert, Price & Rhoads, 1997-1999. - ----------------------------------------------------------------------------------------------------------------------- Lydia A. Gavalis Vice President Since SEI Investments since 1998; N/A N/A 40 and Assistant May, Present: Vice President and Secretary 1998 Assistant Secretary of the Adviser and Administrator; present; Assistant General Counsel and Director of Arbitration, Philadelphia Stock Exchange, 1989-1998. - ----------------------------------------------------------------------------------------------------------------------- Christine McCullough Vice Since SEI Investments since 1999; N/A N/A 43 President May, Vice President and Assistant and Assistant 2000 Secretary of the Adviser, present; Secretary Associate, White and Williams LLP, 1991-1999 - ----------------------------------------------------------------------------------------------------------------------- William E. Zitelli Jr. Vice President Since SEI Investments since 2000; N/A N/A 35 and Assistant November, Assistant Secretary of the Adviser Secretary 2000 and the Administrator, present; Vice President, Merrill Lynch & Co. Asset Management Group, 1998-2000; Associate, Pepper Hamilton LLP, 1997-1998. - -----------------------------------------------------------------------------------------------------------------------
53
TRUSTEES AND OFFICERS OF THE STI CLASSIC FUNDS - ------------------------------------------------------------------------------------------------------------------------------ - ------------------------------------------------------------------------------------------------------------------------------ TERM OF NUMBER OF OFFICE PORTFOLIOS AND PRINCIPAL IN STI CLASSIC NAME POSITION(S) LENGTH OF OCCUPATION(S) COMPLEX OTHER DIRECTORSHIPS ADDRESS, HELD WITH TIME DURING PAST OVERSEEN BY HELD BY AND AGE 1 THE TRUST SERVED 5 YEARS BOARD MEMBER BOARD MEMBER - ------------------------------------------------------------------------------------------------------------------------------ OFFICERS -- CONTINUED - -------------------- Douglas Phillips Vice President Since President, Chief Executive Officer N/A N/A 56 and Assistant August, and Chief Investment Officer of Secretary 2003 Trusco Capital Management, Inc. since its inception in November 1984. - ------------------------------------------------------------------------------------------------------------------------------- Deborah A. Lamb Vice President Since Chief Compliance Officer and N/A N/A 51 and Assistant November, Vice President of Trusco Capital Secretary 2003 Management, Inc. since March 2003 and President of Investment Industry Consultants, LLC since June 2000. Director of Compliance at INVESCO, Inc. from March 1995 to June 2000. - ------------------------------------------------------------------------------------------------------------------------------- Kathleen Lentz Vice President Since Vice President and Manager of N/A N/A 43 and Assistant November, Special Entities in Financial Secretary 2003 Intelligence Unit of SunTrust Bank since 2002. Vice President of the Third Party Mutual Funds Unit of SunTrust Bank from 1996 to 2002. - ------------------------------------------------------------------------------------------------------------------------------- John Munera Vice President Since Middle Office Compliance Officer N/A N/A 41 and Assistant November, at SEI Investments since 2000. Secretary 2003 Supervising Examiner at Federal Reserve Bank of Philadelphia 1998-2000. - ------------------------------------------------------------------------------------------------------------------------------- 1 Each trustee and officer may be contacted by writing to c/o STI Classic Funds, SEI Investments Company, Oaks, PA 19456. 2 Each trustee shall hold office during the lifetime of this Trust until the election and qualification of his or her successor, or until he or she sooner dies, resigns or is removed in accordance with the Trust's Declaration of Trust. 3 The "STI Classic Complex" consists of all registered investment companies for which Trusco Capital Management, Inc. serves as investment adviser. As of May 31, 2004, the STI Classic Complex consisted of 52 Funds. 4 Directorships of companies required to report to the U.S. Securities and Exchange Commission under the Securities Exchange Act of 1934 (i.e., "public companies") or other investment companies registered under the 1940 Act. 5 Mr. Courts is deemed an interested trustee because of his directorships with affiliates of the Adviser. Mr. Ridley is deemed an interested trustee because of his material business relationships with the parent to the Adviser.
54
NOTICE TO SHAREHOLDERS - ----------------------------------------------------------------------------------------------------------------------------------- STI CLASSIC FUNDS MAY 31, 2004 (UNAUDITED) For shareholders that do not have a May 31, 2004 tax year end, this notice is for informational purposes only. For shareholders with a May 31, 2004 tax year end, please consult your tax adviser as to the pertinence of this notice. For the fiscal year ended May 31, 2004, each Fund is designating the following items with regard to distributions paid during the year: QUALIFYING LONG TERM LONG LONG DIVIDENDS (20% RATE) (15% RATE) QUALIFIED ORDINARY FOR CORPORATE CAPITAL GAIN CAPITAL GAIN 5-YEAR GAIN INCOME TAX-EXEMPT TOTAL DIVIDENDS REC. FUND DISTRIBUTIONS DISTRIBUTIONS DISTRIBUTION DISTRIBUTIONS INTEREST DISTRIBUTIONS DEDUCTIONS (1) - -------------------------- ------------- -------------- -------------- -------------- --------- ------------ -------------- Prime Quality Money Market Fund 0.00% 0.00% 0.00% 100.00% 0.00% 100.00% 0.00% Tax-Exempt Money Market Fund 1.17% 0.17% 0.00% 0.89% 97.77% 100.00% 0.00% U.S. Government Securities Money Market Fund 0.00% 0.00% 0.00% 100.00% 0.00% 100.00% 0.00% U.S. Treasury Money Market Fund 0.13% 0.00% 0.00% 99.87% 0.00% 100.00% 0.00% Virginia Tax-Free Money Market Fund 4.87% 1.27% 0.00% 1.71% 92.15% 100.00% 0.00% - -------------------- (1) Qualifying dividends represent dividends which qualify for the corporate dividends received deduction and is reflected as a percentage of "Ordinary Income Distributions".
55 NOTES - -------------------------------------------------------------------------------- NOTES - -------------------------------------------------------------------------------- INVESTMENT ADVISER TRUSCO CAPITAL MANAGEMENT, INC. STI Classic Funds are not deposits, are not insured or guaranteed by the FDIC or any other government agency, and are not endorsed by and do not constitute obligations of SunTrust Banks, Inc. or any other of its affiliates. Investment in the Funds involves risk, including the possible loss of principal. There is no guarantee that any STI Classic Fund will achieve its investment objective. The STI Classic Funds are advised by an affiliate of SunTrust Banks, Inc. DISTRIBUTOR SEI INVESTMENTS DISTRIBUTION CO. This information must be preceded or accompanied by a current prospectus for each Fund described. STI-AR-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, principal accounting officer, officer or controller, or persons performing similar functions, regardless of whether these individuals are employed by the registrant or a third party. ITEM 3. AUDIT COMMITTEE FINANCIAL EXPERT. The registrant's Board of Trustees has determined that the Board's Audit Committee does not have an "audit committee financial expert," as the Securities and Exchange Commission has defined that term. After carefully considering all of the factors involved in the definition of "audit committee financial expert," the Board determined that none of the members of the audit committee met all five qualifications in the definition, although some members of the Audit Committees met some of the qualifications. The Board also determined that the Audit Committee members collectively have many years of experience in business and finance, including working with mutual fund financial statements and auditors, and that in light of the nature of the accounting and valuation issues the registrant's portfolios have presented over the past several years, it did not appear that the Audit Committee members lacked any necessary skill to serve on the Audit Committee. ITEM 4. PRINCIPAL ACCOUNTANT FEES AND SERVICES. Fees billed by PricewaterhouseCoopers LLP ("PWC") related to the Trust PWC billed the Trust aggregate fees for services rendered to the Trust for the last two fiscal years as follows:
- -------------------------------------------------------------------------------------------------------------------------------- 2004 2003 - -------------------------------------------------------------------------------------------------------------------------------- All fees and All fees and All other fees All fees and All fees and All other fees services to the services to and services to services to the services to and services to Trust that were service service Trust that were service service pre-approved affiliates that affiliates that pre-approved affiliates that affiliates that were did not require were did not require pre-approved pre-approval pre-approved pre-approval - -------------------------------------------------------------------------------------------------------------------------------- (a) Audit $ 563,000 N/A $ 0 $ 448,509 N/A $ 0 Fees(1) - -------------------------------------------------------------------------------------------------------------------------------- (b) Audit- $ 72,000 (2) $ 60,000 (3) $ 1,795,277 (4) $ 61,500 (2) $ 0 $ 1,498,453 (4) Related Fees - -------------------------------------------------------------------------------------------------------------------------------- (c) Tax Fees $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 - -------------------------------------------------------------------------------------------------------------------------------- (d) All $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 Other Fees - --------------------------------------------------------------------------------------------------------------------------------
Notes: (1) Audit fees include amounts related to the audit of the registrant's annual financial statements and services normally provided by the accountant in connection with statutory and regulatory filings. (2) Services related to security count examinations under Rule 17f-2 of the Investment Company Act for 2004 and 2003 fiscal years. (3) Services related to the audit of the controls around custody operations at SunTrust Bank (SAS No. 70) in 2003. (4) Non-audit services relate principally to certain technical accounting advice on financial products of the Bank; Sarbanes-Oxley 404 implementation; and, tax compliance services to other entities controlled by SunTrust Banks, Inc. (e)(1) The registrant has adopted an Audit and Non-Audit Services Pre-Approval Policy, as follows: I. Statement of Principles As set forth in the chart below, the Sarbanes-Oxley Act of 2002 (the "Act"), and rules adopted by the Securities and Exchange Commission ("SEC") require that the Audit Committee of the Board of Trustees pre-approve all audit services and non-audit services provided to the STI Classic Funds and the STI Classic Variable Trust (the "Trusts") and their respective portfolios (the "Funds") by its independent accountant ("Auditor"),1 as well as non-audit services provided by the Auditor to the Funds' investment adviser and to affiliates of the adviser that provide ongoing services to the Funds ("Service Affiliates") if the services directly impact the Funds' operations and financial reporting.
WHERE PRE-APPROVAL IS REQUIRED - -------------------------------------------------------------------------------------------------------- AUDIT SERVICE NON-AUDIT SERVICE - -------------------------------------------------------------------------------------------------------- Fund Yes Yes - -------------------------------------------------------------------------------------------------------- Adviser No Yes, if directly related to Fund operation and financial reporting - -------------------------------------------------------------------------------------------------------- Service Affiliate 2 No Yes, if directly related to Fund operation and financial reporting - --------------------------------------------------------------------------------------------------------
The following policies and procedures govern the ways in which the Audit Committee will pre-approve audit and various types of non-audit services that the Auditor provides to the Trusts and to Service Affiliates. These policies and procedures do not apply in the case of audit services that the Auditor provides to Service Affiliates, nor do they apply to services that an audit firm other than the Auditor provides to such entities. - -------------------------------------------------------------------------------- 1 The Audit Committee also is permitted to ratify the provision of inadvertent non-audit services, BUT ONLY IF: o the value of all such services do not exceed 5% of total revenues paid by the Fund, the Adviser and Service Affiliates to the Auditor in the fiscal year when services are provided; 2 o the services were not recognized as non-audit services at the time they were provided; and o the services are promptly brought to the attention of the Audit Committee and approved prior to the completion of the audit. 2 A list of Service Affiliates is set out in Exhibit I, attached hereto. These policies and procedures comply with the requirements for pre-approval, but also provide a mechanism by which management of the Trusts may request and secure pre-approval of audit and non-audit services in an orderly manner with minimal disruption to normal business operations. Pre-approval of non-audit services may be achieved through a combination of the procedures described in Sections II and VI below. II. Delegation As contemplated by the Act and applicable SEC rules, the Audit Committee hereby delegates to the Chairperson of the Audit Committee the authority to approve the engagement of the independent auditor to provide non-audit services as permitted by the Act, to the extent that such non-audit services are not pre-approved by the entire Audit Committee as set forth herein. The Chairman shall report, for informational purposes only, any pre-approval decisions to the Audit Committee at its next scheduled meeting. III. Audit Services The annual Audit services engagement scope and terms will be subject to the specific pre-approval of the Audit Committee. Audit services include the annual financial statement audit (including required rating agency reviews) and other procedures required to be performed by the independent auditor to be able to form an opinion on the Trusts' financial statements. The Audit Committee will monitor the Audit services engagement throughout the year and will also approve, if necessary, any changes in terms and conditions resulting from changes in audit scope, Fund structure or other items. The Audit Committee will pre-approve all Audit services for the Trusts. IV. Audit-related Services Audit-related services are assurance and related services that are reasonably related to the performance of the audit or review of the Trusts' financial statements or that are traditionally performed by the Auditor. The Audit Committee will pre-approve all Audit-related services for the Trusts. V. Tax Services Tax services to the Trusts include tax compliance, tax planning and tax advice. The Audit Committee will review all proposed tax related services to assure that their provision would not impair the independence of the Auditor. The Audit Committee will pre-approve all tax services for the Trusts. VI. All Other Services The Audit Committee believes, based on the SEC's rules prohibiting the independent auditor from providing specific non-audit services, 3 that other types of non-audit services are permitted. Accordingly, the Audit Committee believes it may pre-approve those permissible non-audit services classified as All Other Services that it believes would not impair the independence of the auditor, and are consistent with the SEC's rules on auditor independence. The Audit Committee will pre-approve all other services for the Trusts. - -------------------------------------------------------------------------------- 3 A list of specific prohibited non-audit services is set out in Exhibit II, attached hereto. VII. Procedures Annually, the Audit Committee will review and approve the types of services to be provided by the Auditor and review the projected fees for the next fiscal year at a regularly scheduled meeting. That approval will acknowledge that the Audit Committee is in agreement with the specific types of services that the Auditor will be permitted to perform. If subsequent to the annual approval by the Audit Committee, the Funds' or the Trusts or any Service Affiliate seeks to engage the Auditor to perform a service that was not approved, the Auditor, upon learning of such proposed engagement, should submit the proposed engagement to the Trusts' [Treasurer or the Adviser] and if the service fits within the independence guidelines, the [Treasurer or the Adviser] will arrange for a discussion of the service to be included on the agenda for the next regularly scheduled Audit Committee meeting so that specific approval can be obtained. If the timing of the project is critical and the project needs to commence before the regularly scheduled meeting, the specific pre-approval by the Chairperson of the Audit Committee must be obtained before any services are provided. The [Treasurer or the Adviser] will arrange this. The Auditor must not commence any such project until specific approval has been given. VIII. Recordkeeping The Trusts shall maintain a written record of all decisions made by the Audit Committee or by the Chairperson of the Audit Committee pursuant to these procedures, together with appropriate supporting material. In connection with the ratification of any inadvertent non-audit services, a record shall be made indicating that each of the conditions for this exception to the pre-approval requirement has been satisfied. 4 IX. Amendment The Audit Committee may review and amend these policies and procedures from time to time as it deems appropriate. Exhibit I STI CLASSIC FUNDS/STI CLASSIC VARIABLE TRUST Service Affiliates Subject to Pre-Approval of Non-Audit Services o Trusco Capital Management, Inc. o SunTrust Banks, Inc. o SunTrust Securities Inc. o SunTrust Robinson Humphrey o [any other affiliates that provide services to the Trusts] - -------------------------------------------------------------------------------- 4 See footnote 1 herein. Exhibit II STI CLASSIC FUNDS/STI CLASSIC VARIABLE TRUST Prohibited Non-Audit Services o Bookkeeping or other services related to the accounting records or financial statements of the audit client o Financial information systems design and implementation o Appraisal or valuation services, fairness opinions or contribution-in-kind reports o Actuarial services o Internal audit outsourcing services o Management functions o Human resources o Broker-dealer, investment adviser or investment banking services o Legal services o Expert services unrelated to the audit (e)(2) Percentage of fees billed applicable to non-audit services pursuant to waiver of pre-approval requirement were as follows: --------------------------------------------------------------- 2004 2003 --------------------------------------------------------------- Audit-Related Fees 0 % 0 % --------------------------------------------------------------- Tax Fees 0 % 0 % --------------------------------------------------------------- All Other Fees 0 % 0 % --------------------------------------------------------------- (f) Not applicable. (g) The aggregate non-audit fees and services billed by PWC for the last two fiscal years were $1,855,277 and $1,498,453 for 2004 and 2003, respectively. (h) The audit committee of the registrant's Board of Trustees reviewed and considered whether the provision of non-audit services that were rendered to the registrant's investment adviser, and any entity controlling, controlled by, or under common control with the investment adviser that provides ongoing services to the registrant, that were not pre-approved pursuant to paragraph (c)(7) (ii) of Rule 2-01 of Regulation S-X is compatible with maintaining the principal accountant's independence. ITEM 5. AUDIT COMMITTEE OF LISTED REGISTRANTS. Not applicable. ITEM 6. SCHEDULE OF INVESTMENTS. Not applicable. ITEM 7. DISCLOSURE OF PROXY VOTING POLICIES AND PROCEDURES FOR CLOSED-END MANAGEMENT INVESTMENT COMPANIES. Not applicable. ITEM 8. PURCHASERS OF EQUITY SECURITIES BY CLOSED-END MANAGEMENT COMPANY AND AFFILIATED PURCHASERS. Not applicable. ITEM 9. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS. Not applicable. ITEM 10. 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 changes in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal half-year that have materially affected, or are reasonably likely to materially affect, the registrants internal control over financial reporting. ITEMS 11. EXHIBITS. (a)(1) Code of Ethics attached hereto. (a)(2) A separate certification for the principal executive officer and the principal financial officer of the registrant as required by Rule 30a-2(a) under the Investment Company Act of 1940, as amended (17 CFR 270.30a-2(a)), are filed herewith. (b) Officer certifications as required by Rule 30a-2(b) under the Investment Company Act of 1940, as amended (17 CFR 270.30a-2(b)) also accompany this filing as an exhibit. - -------------------------------------------------------------------------------- SIGNATURES Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized. (Registrant) STI Classic Funds By (Signature and Title)* /s/ James F. Volk ------------------------------------- James F. Volk, President Date 07/26/04 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 07/26/04 By (Signature and Title)* /s/ Jennifer E. Spratley ------------------------------------- Jennifer E. Spratley, Treasurer & CFO Date 07/26/04 * Print the name and title of each signing officer under his or her signature. EX-99.CODE ETH 2 stiretailmmcodeofethics.txt STI CL MM CODE OF ETHICS 5_04 STI CLASSIC FUNDS STI CLASSIC VARIABLE TRUST FINANCIAL OFFICER CODE OF ETHICS I. INTRODUCTION The reputation and integrity of the STI Classic Funds and STI Classic Variable Trust (the "Trusts") are valuable assets that are vital to the Trusts' success. The Trusts' senior financial officers ("SFOs") are responsible for conducting the Trusts' business in a manner that demonstrates a commitment to the highest standards of integrity. The Trusts' SFOs include the principal executive officer, the principal financial officer, comptroller or principal accounting officer, and any person who performs a similar function. The Sarbanes-Oxley Act of 2002 (the "Act") effected sweeping corporate disclosure and financial reporting reform on public companies, including mutual funds, to address corporate malfeasance and assure investors that the companies in which they invest are accurately and completely disclosing financial information. Under the Act, all public companies (including the Trust) must either have a code of ethics for their SFOs, or disclose why it does not. The Act was intended to foster corporate environments which encourage employees to question and report unethical and potentially illegal business practices. The Trusts have chosen to adopt this Financial Officer Code of Ethics (the "Code") to encourage their SFOs to act in a manner consistent with the highest principles of ethical conduct. II. PURPOSES OF THE CODE The purposes of this Code are: o To promote honest and ethical conduct by the Trusts' SFOs, including the ethical handling of actual or apparent conflicts of interest between personal and professional relationships; o To assist the Trusts' SFOs in recognizing and avoiding conflicts of interest, including disclosing to an appropriate person any material transaction or relationship that reasonably could be expected to give rise to such a conflict; o To promote full, fair, accurate, timely, and understandable disclosure in reports and documents that the Trusts file with, or submit to, the SEC and in other public communications made by the Trusts; o To promote compliance with applicable laws, rules and regulations; o To encourage the prompt internal reporting to an appropriate person of violations of this Code; and o To establish accountability for adherence to this Code. 1 III. QUESTIONS ABOUT THIS CODE The Trusts' compliance officer designated to oversee compliance with the Trusts' Code of Ethics adopted pursuant to Rule 17j-1 shall serve as Compliance Officer for the implementation and administration of this Code. You should direct your questions about this Code to the Compliance Officer. IV. CONDUCT GUIDELINES The Trusts have adopted the following guidelines under which the Trusts' SFOs must perform their official duties and conduct the business affairs of the Trusts. 1. ETHICAL AND HONEST CONDUCT IS OF PARAMOUNT IMPORTANCE. The Trusts' SFOs must act with honesty and integrity and avoid violations of this Code, including the avoidance of actual or apparent conflicts of interest with the Trusts in personal and professional relationships. 2. SFOS MUST DISCLOSE MATERIAL TRANSACTIONS OR RELATIONSHIPS. The Trusts' SFOs must disclose to the Compliance Officer any actual or apparent conflicts of interest the SFO may have with the Trusts that reasonably could be expected to give rise to any violations of this Code. Such conflicts of interest may arise as a result of material transactions or business or personal relationships to which the SFO may be a party. If it is not possible to disclose the matter to the Compliance Officer, it should be disclosed to the Trusts' Chief Financial Officer, Chief Executive Officer or another appropriate person. In addition to disclosing any actual or apparent conflicts of interest in which an SFO is personally involved, the Trusts' SFOs have an obligation to report any other actual or apparent conflicts which they discover or of which they otherwise become aware. If you are unsure whether a particular fact pattern gives rise to a conflict of interest, or whether a particular transaction or relationship is "material," you should bring the matter to the attention of the Compliance Officer. 3. STANDARDS FOR QUALITY OF INFORMATION SHARED WITH SERVICE PROVIDERS OF THE TRUSTS. The Trusts' SFOs must at all times seek to provide information to the Trusts' service providers (adviser, administrator, outside auditor, outside counsel, custodian, ETC.) that is accurate, complete, objective, relevant, timely, and understandable. 4. STANDARDS FOR QUALITY OF INFORMATION INCLUDED IN PERIODIC REPORTS. The Trusts' SFOs must at all times endeavor to ensure full, fair, timely, accurate, and understandable disclosure in the Trusts' periodic reports. 5. COMPLIANCE WITH LAWS. The Trusts' SFOs must comply with the federal securities laws and other laws and rules applicable to the Trusts, such as the Internal Revenue Code. 2 6. STANDARD OF CARE. The Trusts' SFOs must at all times act in good faith and with due care, competence and diligence, without misrepresenting material facts or allowing your independent judgment to be subordinated. The Trusts' SFOs must conduct the affairs of the Trusts in a responsible manner, consistent with this Code. 7. CONFIDENTIALITY OF INFORMATION. The Trusts' SFOs must respect and protect the confidentiality of information acquired in the course of their professional duties, except when authorized by the Trusts to disclose it or where disclosure is otherwise legally mandated. You may not use confidential information acquired in the course of your work for personal advantage. 8. SHARING OF INFORMATION AND EDUCATIONAL STANDARDS. The Trusts' SFOs should share information with relevant parties to keep them informed of the business affairs of the Trusts, as appropriate, and maintain skills important and relevant to the Trusts' needs. 9. PROMOTE ETHICAL CONDUCT. The Trusts' SFOs should at all times proactively promote ethical behavior among peers in your work environment. 10. STANDARDS FOR RECORDKEEPING. The Trusts' SFOs must at all times endeavor to ensure that the Trusts' financial books and records are thoroughly and accurately maintained to the best of their knowledge in a manner consistent with applicable laws and this Code. V. WAIVERS OF THIS CODE You may request a waiver of a provision of this Code by submitting your request in writing to the Compliance Officer for appropriate review. For example, if a family member works for a service provider that prepares the Trusts' financial statements, you may have a potential conflict of interest in reviewing those statements and should seek a waiver of this Code to review the work. An executive officer of the Trusts, or another appropriate person (such as a designated Board or Audit Committee member), will decide whether to grant a waiver. All waivers of this code must be disclosed to the Trusts' shareholders to the extent required by SEC rules. VI. AFFIRMATION OF THE CODE Upon adoption of the Code, the Trusts' SFOs must affirm in writing that they have received, read and understand the Code, and annually thereafter must affirm that they have complied with the requirements of the Code. To the extent necessary, the Trusts' Compliance Officer will provide guidance on the conduct required by this Code and the manner in which violations or suspected violations must be reported and waivers must be requested. 3 VII. REPORTING VIOLATIONS In the event that an SFO discovers or, in good faith, suspects a violation of this Code, the SFO MUST immediately report the violation or suspected violation to the Compliance Officer. The Compliance Officer may, in his or her discretion, consult with another member of the Trusts' senior management or the Board in determining how to address the suspected violation. For example, a Code violation may occur when a periodic report or financial statement of the Trusts omits a material fact, or is technically accurate but, in the view of the SFO, is written in a way that obscures its meaning. SFOs who report violations or suspected violations in good faith will not be subject to retaliation of any kind. Reported violations will be investigated and addressed promptly and will be treated as confidential to the extent possible. VIII. VIOLATIONS OF THE CODE Dishonest or unethical conduct or conduct that is illegal will constitute a violation of this Code, regardless of whether this Code specifically refers to such particular conduct. A violation of this Code may result in disciplinary action, up to and including removal as an SFO of the Trust. A variety of laws apply to the Trusts and their operations, including the Securities Act of 1933, the Investment Company Act of 1940, state laws relating to duties owed by Trust officers, and criminal laws. The Trusts will report any suspected criminal violations to the appropriate authorities, and will investigate, address and report, as appropriate, non-criminal violations. ADOPTED: NOVEMBER 20, 2003 4 EX-99.CERT 3 stiretailmm302cert_jv.txt STI CL MM RET 302 CERT _JV 5_04 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 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: 07/26/04 /s/ James F. Volk - ----------------- James F. Volk President EX-99.CERT 4 stiretailmm302cert_js.txt STI CL MM RET 302 CERT _ JS 5_04 CERTIFICATION Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 I, Jennifer E. Spratley, certify that: 1. I have reviewed this report on Form N-CSR of STI Classic Funds; 2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; 3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations, changes in net assets, and cash flows (if the financial statements are required to include a statement of cash flows) of the registrant as of, and for, the periods presented in this report; 4. The registrant's other certifying 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: 07/26/04 /s/ Jennifer E. Spratley - ------------------------ Jennifer E. Spratley Treasurer & CFO EX-99.906 5 stiretail906cert_jv.txt STI CL MM RET CERT 906_JV 5_04 CERTIFICATION Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 The undersigned, the PRESIDENT of STI CLASSIC FUNDS (the "Fund"), with respect to the Form N-CSR for the period ended MAY 31, 2004 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: 07/26/04 /s/ James F. Volk ----------------- James F. Volk EX-99.906 6 stiretailmm906cert_js.txt STI CL MM RET 906 CERT_JS 5_04 CERTIFICATION Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 The undersigned, the Treasurer & CFO of STI CLASSIC FUNDS (the "Fund"), with respect to the Form N-CSR for the period ended MAY 31, 2004 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: 07/26/04 /s/ Jennifer E. Spratley ------------------------ Jennifer E. Spratley -----END PRIVACY-ENHANCED MESSAGE-----