-----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, Qq3bqRw/6+IQ072ZuA8RSMEiZgcHg2jnJU/VM3nXk27Sad3mLZ9TV3LLkfWSvExE BICu8jEz1VI+5gThBvTssQ== 0000935069-96-000095.txt : 19960730 0000935069-96-000095.hdr.sgml : 19960730 ACCESSION NUMBER: 0000935069-96-000095 CONFORMED SUBMISSION TYPE: N-30D PUBLIC DOCUMENT COUNT: 1 CONFORMED PERIOD OF REPORT: 19960531 FILED AS OF DATE: 19960729 SROS: NONE FILER: COMPANY DATA: COMPANY CONFORMED NAME: STI CLASSIC FUNDS CENTRAL INDEX KEY: 0000883939 STANDARD INDUSTRIAL CLASSIFICATION: [] STATE OF INCORPORATION: MA FISCAL YEAR END: 0531 FILING VALUES: FORM TYPE: N-30D SEC ACT: 1940 Act SEC FILE NUMBER: 811-06557 FILM NUMBER: 96600464 BUSINESS ADDRESS: STREET 1: 2 OLIVER STREET CITY: BOSTON STATE: MA ZIP: 02109 BUSINESS PHONE: 6109896602 MAIL ADDRESS: STREET 1: 680 E SWEDESFORD ROAD STREET 2: 680 E SWEDESFORD ROAD CITY: WAYNE STATE: PA ZIP: 19087 N-30D 1 STI CLASSIC FUNDS ANNUAL REPORT ANNUAL FINANCIAL REPORT STI CLASSIC FUNDS [GRAPHIC OMITTED] A FAMILY OF MUTUAL FUNDS MAY 31, 1996 STI CLASSIC FUNDS Dear STI Classic Trust Shareholder: As of May 31, 1996, STI Classic Funds' assets totaled $6.8 billion or 26.1% more than the $5.4 billion reported to you as of May 31, 1995. The newest addition to the family, the STI Classic International Equity Fund, introduced in December 1995, has been well received in the marketplace and now totals $217.8 million in assets. The STI Classic family of 19 funds was recognized by BARRON'S as the tenth best overall total return performing family for full year 1995 among 62 major fund families. This survey included fund families that offer at least three equity funds, three taxable bond funds, two tax-exempt bond funds, and a minimum of one fund for international stocks, money markets, and both stocks and bonds. Economic and financial market sentiment has shifted over the past 12 months. We began the period (June 1995) with slow economic growth and even fears, by some investors, of a recession. As a result, the Federal Reserve lowered short-term interest rates. Concurrently, long-term rates also declined. As a result, total return for domestic fixed income securities was quite good. With the start of 1996, which is a U.S. presidential election year, the economy rebounded and interest rates rose even though inflation appeared under control. Through much of this period, stocks rose and have continued to provide excellent total return performance. We believe that the STI Classic Funds with a wide variety of investment objectives and disciplined investment styles are well positioned to serve shareholders in the future. Sincerely, /s/ ANTHONY R. GRAY Anthony R. Gray President, Chief Investment Officer STI Capital Management, N.A. /s/ DOUGLAS S. PHILLIPS Douglas S. Phillips, CFA President, Chief Investment Officer Trusco Capital Management, Inc. STI CLASSIC VALUE INCOME STOCK FUND ----------------------------------- The STI Classic Value Income Stock Fund (the Fund) continues its solid performance. Due to anticipated changes and increasing commodity prices in the Energy Sector, this group has considerably outperformed the market. We have taken this opportunity to sell or reduce many of these positions and now are underweighted in this group. This sector has been a significant contributor to our funds outperformance year-to-date. The Fund currently is diversified and broad based in its industry weighting, which is expected based on current market conditions. The Fund's Trust Class returned 27.91% for the fiscal year ended May 31, 1996, compared to 26.35% for the S&P Barra Value and 26.34% for the average mutual fund in its peer group according to the Lipper Equity Income Fund Average. The Fund seeks to invest in stocks with an above-average market yield which are undervalued compared to their historical relative valuation and have improving fundamental prospects. This process has historically delivered superior returns with less volatility in a variety of market conditions. Driven by large cash inflows, the market continues its unprecedented rise reaching new valuation highs and yield lows at fiscal year end. We continue though to find ample opportunities to invest in securities which meet our strict disciplined process. The year saw significant changes in market leadership and shifting sentiment towards various industry sectors. The industry overweighting which most significantly added to the Fund's performance during the year included financials, energy (at fiscal year end), and consumer staples. Each of these areas, after periods of outperformance, were reduced and are currently underweighted. Bottom-up stock selections has led to a broad based, diversified portfolio. No significant overweighting occurs at this time. Each security in the Fund has attractive valuations and fundamentals of interest. /s/ MILLS A. RIDDICK Mills A. Riddick, CFA Senior Vice President 2 TRUST CLASS (Graph) [GRAPHIC OMITTED] Shown immediately following the Advisor's Discussion of Fund Performance are three line graphs depicting the growth (including reinvestment of dividends and capital gains) of a hypothetical investment of $10,000 as compared with the growth of a hypothetical investment of $10,000 in the Fund's benchmark(s). Trust Class - -------------------------------------------------------------------------------- Annualized Annualized Cumulative One Year 3 Year Inception Inception Return Return to Date to Date - -------------------------------------------------------------------------------- 27.91% 18.76% 17.89% 72.00% - -------------------------------------------------------------------------------- Comparison of Change in the Value of a $10,000 Investment
Period Ended Growth of $10,000 Growth of $10,000 Growth of $10,000 Lipper Invested in the STI Invested in the S&P / Equity Income Funds Classic Value Income BARRA Value Index Average Stock Trust Class 2/28/93 $10,000 $10,000 $10,000 5/31/93 10,395 10,426 10,353 5/31/94 11,432 11,202 10,875 5/31/95 13,611 13,114 12,278 5/31/96 17,410 16,568 15,151
Investor Class [GRAPHIC OMITTED] - -------------------------------------------------------------------------------- Annualized Annualized Cumulative One Year 3 Year Inception Inception Return Return to Date to Date 27.39% 18.23% 18.46% 74.36% Wiithout load - -------------------------------------------------------------------------------- 22.62% 16.73% 17.08% 67.80% With load - -------------------------------------------------------------------------------- Comparison of Change in the Value of a $10,000 Investment
Period Ended Growth of $10,000 Growth of $10,000 Growth of $10,000 Lipper Invested in the STI Invested in the S&P / Equity Income Funds Classic Value Income BARRA Value Index Average Stock Investor Class 2/28/93 $ 9,625 $10,000 $10,000 5/31/93 10,010 10,426 10,353 5/31/94 10,940 11,202 10,875 5/31/95 12,986 13,114 12,278 5/31/96 16,543 16,568 15,151
Flex Class* [GRAPHIC OMITTED] - ------------------------------------------- Annualized Cumulative Inception Inception to Date to Date - ------------------------------------------- 26.52% 26.52% Without load - ------------------------------------------- 24.52% 24.52% With load - ------------------------------------------- Comparison of Change in the Value of a $10,000 Investment
Period Ended Growth of $10,000 Growth of $10,000 Growth of $10,000 Lipper Invested in the STI Invested in the S&P / Equity Income Funds Classic Value Income BARRA Value Index Average Stock Flex Class 6/30/95 $10,000 $10,000 $10,000 5/31/96 12,366 12,539 11,266
*Commenced operations June 1, 1995. Past performance is no indication of future performance. The Fund's comparative benchmarks do not include the annual operating expenses incurred by the Fund. 3 STI CLASSIC MID-CAP EQUITY FUND ------------------------------- The investment objective of the STI Classic Mid-Cap Equity Fund (the Fund), formerly the Aggressive Growth Fund, seeks to provide capital appreciation by investing in a diversified portfolio of common stocks, preferred stocks and securities, convertible into common stocks of small to mid-size companies primarily in the $50 million to $1 billion and $500 million to $5 billion, respectively, capitalization range which have above-average growth of earnings. Stock selection is centered around buying companies that are at the low end of their historical price earnings ratio when compared to the stock market and selling when the value dissipates due to appreciation, a change in fundamentals/earnings or a change in the market. For the year, several industry groups contributed positively to the Fund's performance due to the strong economy and in turn positive earnings surprises including certain segments of technology, leisure, and capital goods. While healthcare performed poorly and impacted performance, biotechnology issues were strong as new drug trials and FDA approvals occurred at an accelerated pace. The last third of the year was impacted by rising interest rates which penalized interest sensitive sectors. Looking forward, productivity needs to continue to outstrip wages if inflation is to be kept in check. This outlook leads us toward those corporations which provide technological improvement. The other current force that is shaping equity selection is interest rates which are high historically, relative to inflation. As a result, we have been concentrating our purchases in growth stocks due to their consistent earnings. We believe that going forward mid-cap stocks over time will continue to outperform large capitalization stocks as they have historically. New opportunities for capital appreciation continue to present themselves in the mid-cap arena. /s/ THOMAS EDGAR Thomas Edgar Senior Vice President 4 Shown immediately following the Advisor's Discussion of Fund Performance are three line graphs depicting the growth (including reinvestment of dividends and capital gains) of a hypothetical investment of $10,000 as compared with the growth of a hypothetical investment of $10,000 in the Fund's benchmark(s). Trust Class [GRAPHIC OMITTED] - ----------------------------------------------------------------------- Annualized Cumulative One Year Inception Inception Return to Date to Date - ----------------------------------------------------------------------- 25.54% 15.35% 39.34% - ----------------------------------------------------------------------- Comparison of Change in the Value of a $10,000 Investment Period Ended Growth of $10,000 Growth of $10,000 Invested in the STI Invested in the S&P Classic Mid-Cap Equity Mid-Cap 400 Index Trust Class 2/28/94 $10,000 $10,000 5/31/94 9,735 9,516 5/31/95 10,958 10,801 5/31/96 13,756 13,877 Investor Class [GRAPHIC OMITTED] - ------------------------------------------------------------ Annualized Cumulative One Year Inception Inception Return to Date to Date - ------------------------------------------------------------ 24.93% 14.71% 37.64% Wiithout load - ------------------------------------------------------------ 20.23% 12.84% 32.48% With load - ------------------------------------------------------------ Comparison of Change in the Value of a $10,000 Investment Period Ended Growth of $10,000 Growth of $10,000 Invested in the STI Invested in the S&P Classic Mid-Cap Equity Mid-Cap 400 Index Investor Class 1/31/94 $ 9,625 $10,000 5/31/94 9,471 9,381 5/31/95 10,603 10,648 5/31/96 13,247 13,680 Flex Class* [GRAPHIC OMITTED] - ------------------------------------------ Annualized Cumulative Inception Inception to Date to Date - ------------------------------------------ 23.00% 22.75% Without load - ------------------------------------------ 21.00% 20.75% With load - ------------------------------------------ Comparison of Change in the Value of a $10,000 Investment Period Ended Growth of $10,000 Growth of $10,000 Invested in the STI Invested in the S&P Classic Mid-Cap Equity Mid-Cap 400 Index Flex Class 6/30/95 $10,000 $10,000 5/31/96 11,639 12,345 *Commenced operations June 5, 1995. Past performance is no indication of future performance. The Fund's comparative benchmarks do not include the annual operating expenses incurred by the Fund. 5 STI CLASSIC CAPITAL GROWTH FUND ------------------------------- Our equity philosophy emphasizes business cycle analysis, sector rotation and meticulous stock selection. By evaluating the relative value of the various sectors at different points in the business cycle, we identify those industries that we believe will perform well in a given environment. Stocks that fall within favored sectors are analyzed based on fundamentals: the quality of margins, dependability of growth rates, relative attractiveness of price/earnings and yields. We concentrate on buying stocks at reasonable prices based primarily on relative earnings ratios and selling when they do not offer as much value as other stocks in the sector. In order to make this relative value comparison, each stock is compared to its own historical price earnings ratio range, to other stocks in the sector, and to the stock market as measured by other indices, such as the S&P 500 Composite Index. In 1995, the STI Classic Capital Growth Fund (the Fund) was positively impacted by strong performance in the drug area with 12-month returns in the 30-60% range. Other big concentrations with strong results were names such as GE, Chase, Philip Morris, UTD Technology, Microsoft, Travelers and Federated Department Stores. All of these gains were in excess of 37%. The Fund continues to be heavily overweighted in large technology, beverage, household, financial, health and leisure. The Fund is underexposed to cyclical sectors such as building, machinery, metals and forest products. /s/ ANTHONY R. GRAY Anthony R. Gray President and Chief Investment Officer 6 Shown immediately following the Advisor's Discussion of Fund Performance are three line graphs depicting the growth (including reinvestment of dividends and capital gains) of a hypothetical investment of $10,000 as compared with the growth of a hypothetical investment of $10,000 in the Fund's benchmark(s). Trust Class [GRAPHIC OMITTED] - -------------------------------------------------------------------------- Annualized Annualized Cumulative One Year 3 Year Inception Inception Return Return to Date to Date - -------------------------------------------------------------------------- 28.97% 12.62% 13.86% 66.21% - -------------------------------------------------------------------------- Comparison of Change in the Value of a $10,000 Investment
Period Ended Growth of $10,000 Growth of $10,000 Growth of $10,000 Lipper Invested in the STI Invested in the S&P 500 Growth Funds Average Classic Capital Growth Composite Index Trust Class 7/31/92 $10,000 $10,000 $10,000 5/31/93 11,203 10,886 11,184 5/31/94 11,638 11,350 11,727 5/31/95 12,409 13,639 13,306 5/31/96 16,004 17,516 17,225
Investor Class [GRAPHIC OMITTED] - -------------------------------------------------------------------------------- Annualized Annualized Cumulative One Year 3 Year Inception Inception Return Return to Date to Date - -------------------------------------------------------------------------------- 28.18% 11.92% 13.96% 68.13% Wiithout load - -------------------------------------------------------------------------------- 23.41% 10.52% 12.87% 61.82% With load - -------------------------------------------------------------------------------- Comparison of Change in the Value of a $10,000 Investment
Period Ended Growth of $10,000 Growth of $10,000 Growth of $10,000 Lipper Invested in the STI Invested in the S&P 500 Growth Funds Average Classic Capital Growth Composite Index Investor Class 6/30/92 $ 9,625 $10,000 $10,000 5/31/93 11,206 11,330 11,584 5/31/94 11,572 11,813 12,147 5/31/95 12,258 14,195 13,782 5/31/96 15,712 18,231 17,842
Flex Class* [GRAPHIC OMITTED] - ----------------------------------------------------- Annualized Cumulative Inception Inception to Date to Date - ----------------------------------------------------- 27.48% 27.48% Without load - ----------------------------------------------------- 25.48% 25.48% With load - ----------------------------------------------------- Comparison of Change in the Value of a $10,000 Investment
Period Ended Growth of $10,000 Growth of $10,000 Growth of $10,000 Lipper Invested in the STI Invested in the S&P 500 Growth Funds Average Classic Capital Growth Composite Index Flex Class 6/30/95 $10,000 $10,000 $10,000 5/31/96 12,187 12,552 12,417
*Commenced operations June 1, 1995. Past performance is no indication of future performance. The Fund's comparative benchmarks do not include the annual operating expenses incurred by the Fund. 7 STI CLASSIC BALANCED FUND ------------------------- The STI Classic Balanced Fund (the Fund) seeks to provide capital appreciation and current income through investments in a diversified portfolio of common and preferred stocks, warrants, securities convertible into common stocks and investment grade fixed income securities. Our equity philosophy emphasizes business cycle analysis, sector rotation and meticulous stock selection. By evaluating the relative value of the various sectors at different points in the business cycle, we identify those industries that we believe will perform well in a given environment. Stocks that fall within favored sectors are analyzed based on fundamentals; the quality of margins, dependability of growth rates, relative attractiveness of price/earnings and yields. We concentrate on buying stocks at reasonable prices based primarily on relative earnings ratios and selling when they do not offer as much value as other stocks in the sector, and to the stock market as measured by other indices, such as the S&P 500 Composite Index. In 1995, the Fund was positively impacted by strong performance in the drug area with 12 month returns in the 30-60% range. Other big concentrations with strong results were names such as GE, Chase, Philip Morris, UTD Technology, Microsoft, Travelers & Federated Department Stores. All of these gains were in excess of 37%. The Fund continues to be heavily overweighted in large technology, beverage, household, financial, health & leisure. The Fund is underexposed to cyclical sectors such as building, machinery, metals and forest products. The fixed income portion of the Fund is managed with only moderate shifts in the average maturity and duration. Total return is enhanced through yield curve analysis (monitoring and analyzing the risk/reward tradeoffs of different maturity sectors), sector rotation, credit analysis, and other low risk strategies. By actively pursuing these strategies, the Fund strives to add to total return while reducing risk. During the past year the Fund increased its mortgage holdings and this has contributed positively to the Fund's performance. Corporate holdings have generally been limited to shorter maturity ranges as this sector seems expensive on a historic basis. /s/ ANTHONY R. GRAY Anthony R. Gray President and Chief Investment Officer /s/ L. EARL DENNEY L. Earl Denney, CFA Executive Vice President 8 Shown immediately following the Advisor's Discussion of Fund Performance are three line graphs depicting the growth (including reinvestment of dividends and capital gains) of a hypothetical investment of $10,000 as compared with the growth of a hypothetical investment of $10,000 in the Fund's benchmark(s). TRUST CLASS (Graph) [GRAPHIC OMITTED] - ----------------------------------------------------------------------- Annualized Cumulative One Year Inception Inception Return to Date to Date - ----------------------------------------------------------------------- 17.26% 9.80% 25.21% - ----------------------------------------------------------------------- Comparison of Change in the Value of a $10,000 Investment
Period Ended Growth of $10,000 Growth of $10,000 Growth of $10,000 Growth of $10,000 Invested in the Invested in the Invested in the Lipper Balanced STI Classic S&P 500 Composite Lehman Funds Objective Balanced Trust Index Government/Corporate Average Class Bond Index 01/31/94 $10,000 $10,000 $10,000 $10,000 5/31/94 9,554 9,578 9,446 9,504 5/31/95 10,387 11,510 10,543 10,628 5/31/96 12,180 14,783 10,628 12,509
INVESTOR CLASS (Graph) [GRAPHIC OMITTED] - ----------------------------------------------------------- Annualized Cumulative One Year Inception Inception Return to Date to Date - ----------------------------------------------------------- 16.88% 9.32% 23.91% Wiithout load - ----------------------------------------------------------- 12.51% 7.60% 19.26% With load - ----------------------------------------------------------- Comparison of Change in the Value of a $10,000 Investment
Period Ended Growth of $10,000 Growth of $10,000 Growth of $10,000 Growth of $10,000 Invested in the Invested in the Invested in the Lipper Balanced STI Classic S&P 500 Composite Lehman Funds Objective Balanced Investor Index Government/Corporate Average Class Bond Index 01/31/94 $ 9,625 $10,000 $10,000 $10,000 5/31/94 9,238 9,578 9,446 9,504 5/31/95 10,004 11,510 10,543 10,628 5/31/96 11,693 14,783 10,975 12,509
FLEX CLASS* (Graph) [GRAPHIC OMITTED] - ------------------------------------------- Annualized Cumulative Inception Inception to Date to Date - ------------------------------------------- 15.58% 15.03% Without load - ------------------------------------------- 13.58% 13.03% With load - ------------------------------------------- Comparison of Change in the Value of a $10,000 Investment
Period Ended Growth of $10,000 Growth of $10,000 Growth of $10,000 Growth of $10,000 Invested in the Invested in the Invested in the Lipper Balanced STI Classic S&P 500 Composite Lehman Funds Objective Balanced Flex Class Index Government/Corporate Average Bond Index 06/30/95 $10,000 $10,000 $10,000 $10,000 5/31/96 11,201 12,552 10,327 11,545
*Commenced operations June 14, 1995. Past performance is no indication of future performance. The Fund's comparative benchmarks do not include the annual operating expenses incurred by the Fund. 9 STI CLASSIC INTERNATIONAL EQUITY INDEX FUND ------------------------------------------- The STI Classic International Equity Index Fund (the Fund) seeks to provide investment results that correspond to the aggregate price and dividend performance of the securities included in the Morgan Stanley Capital International Europe, Australasia, Far East Gross Domestic Product Index ("MSCI EAFE-GDP Index"). The Fund has been constructed to have the aggregate investment characteristics similar to those of the MSCI EAFE-GDP Index. The Fund limits investments to a representative sample of securities contained within the Index. Not all securities or countries in the Index will be held in the Fund. Securities are selected using a statisticaly-based optimization process. No attempt is made to manage the Fund using traditional economic, financial and market analysis. The Fund's investment decisions are not affected by general market conditions. All securities are purchased and held in their local currencies. For the year ending May 31, 1996, the Fund met its objectives. Additionally, the Fund's correlation to the MSCI EAFE-GDP Index was .99. This exceeded the expected annual correlation of .951. The Fund's overall performance for the fiscal year was similar to the MSCI EAFE-GDP Index on a post fee adjusted basis. /s/ ROBERT J. RHODES Robert J. Rhodes, CFA Group Vice President /s/ STANLEY J. CHERNY Stanley J. Cherny Associate - -------------------------- 1Prospectus, Trust Shares, the STI Classic Funds dated October 1, 1995, page 6. 10 Shown immediately following the Advisor's Discussion of Fund Performance are three line graphs depicting the growth (including reinvestment of dividends and capital gains) of a hypothetical investment of $10,000 as compared with the growth of a hypothetical investment of $10,000 in the Fund's benchmark(s). TRUST CLASS (Graph) [GRAPHIC OMITTED] - ----------------------------------------------------------------------- Annualized Cumulative One Year Inception Inception Return to Date to Date - ----------------------------------------------------------------------- 9.29% 5.99% 12.23% - ----------------------------------------------------------------------- Comparison of Change in the Value of a $10,000 Investment Period Ended Growth of $10,000 Growth of $10,000 Invested in the STI Invested in the MSCI Classic International EAFE-GDP Weighted Index, Equity Index Fund in US $ Trust Class 6/30/94 $10,000 $10,000 5/31/95 10,331 10,481 5/31/96 11,291 11,573 INVESTOR CLASS (Graph) [GRAPHIC OMITTED] - ----------------------------------------------------------------------- Annualized Cumulative One Year Inception Inception Return to Date to Date - ----------------------------------------------------------------------- 8.90% 5.53% 11.28% Wiithout load - ----------------------------------------------------------------------- 4.79% 3.52% 7.10% With load - ----------------------------------------------------------------------- Comparison of Change in the Value of a $10,000 Investment Period Ended Growth of $10,000 Growth of $10,000 Invested in the STI Invested in the MSCI Classic International EAFE-GDP Weighted Index, Equity Index Fund in US $ Investor Class 6/30/94 $9,625 $10,000 5/31/95 9,904 10,481 5/31/96 10,786 11,573 FLEX CLASS* (Graph) [GRAPHIC OMITTED] - ------------------------------------------ Annualized Cumulative Inception Inception to Date to Date - ------------------------------------------ 8.32% 8.14% Without load - ------------------------------------------ 6.26% 6.14% With load - ------------------------------------------ Comparison of Change in the Value of a $10,000 Investment Period Ended Growth of $10,000 Growth of $10,000 Invested in the STI Invested in the MSCI Classic International EAFE-GDP Weighted Index, Equity Index Fund in US $ Flex Class 6/30/95 $10,000 $10,000 5/31/96 10,711 11,167 *Commenced operations June 8, 1995. Past performance is no indication of future performance. The Fund's comparative benchmarks do not include the annual operating expenses incurred by the Fund. 11 STI INTERNATIONAL EQUITY FUND ----------------------------- The STI Classic International Equity Fund (the Fund), which commenced operations on December 1, 1995, seeks to provide investment results that outperform the international markets and the average international mutual fund by focusing on sector analysis globally. The Fund invests in quality, financially productive companies which are selling at a discount to their global industry peers. Since the beginning of the calendar year the Fund (Trust Shares) has returned 9.72%, compared to the MSCI EAFE Index of 3.85% and the average international mutual fund of 7.47% according to the Lipper International Fund Average. Over this period the portfolio's overweighting in the capital equipment sector, European markets and underweighting in the Japan market have all contributed to our relative outperformance. Currently our stock selection process continues to lead us to overweight the capital equipment sector. We view this group as having the best 3-5 year appreciation potential. Our other large overweightings include consumer goods and services. Geographically our largest exposure remains Europe. Viewing the world on an industry basis led us to identify many financially solid companies with compelling valuations in Europe. Most of these companies receive a majority of their sales and profits from outside their local market where economic trends are more favorable. Another attractive area is the emerging markets due to a combination of low share valuations and improving fundamentals. Despite an improving outlook for the Japanese economy, Japanese stocks are expensive compared to their global industry peers, and thus we remain underweighted. The Fund continues to perform well. Our exposure to Europe (especially the Nordic countries), emerging markets and the capital equipment industry group all have enhanced the Fund's performance. Other areas where we continue to be overweighted are consumer goods and services. The Fund also continues to be underweighted in Japan. /s/ DANIEL R. JAWORSKI Daniel R. Jaworski Senior Vice President--International Equity Division 12 Shown immediately following the Advisor's Discussion of Fund Performance are three line graphs depicting the growth (including reinvestment of dividends and capital gains) of a hypothetical investment of $10,000 as compared with the growth of a hypothetical investment of $10,000 in the Fund's benchmark(s). TRUST CLASS* (Graph) [GRAPHIC OMITTED] - ----------------------------------------------------- Annualized Cumulative Inception Inception to Date to Date - ----------------------------------------------------- 30.05% 14.00% - ----------------------------------------------------- Comparison of Change in the Value of a $10,000 Investment Period Ended Growth of $10,000 Growth of $10,000 Invested in the STI Invested in the MSCI Classic International EAFE Index, in US $ Equity Fund Trust Class 12/31/95 $10,000 $10,000 5/31/96 10,973 10,385 INVESTOR CLASS(1) (Graph) [GRAPHIC OMITTED] - ------------------------------------------- Annualized Cumulative Inception Inception to Date to Date - ------------------------------------------- 23.34% 9.00% Without load - ------------------------------------------- 12.31% 4.88% With load - ------------------------------------------- Comparison of Change in the Value of a $10,000 Investment Period Ended Growth of $10,000 Growth of $10,000 Invested in the STI Invested in the MSCI Classic International EAFE Index, in US $ Equity Fund Investor Class 1/31/96 $ 9,625 $10,000 5/31/96 10,421 10,344 FLEX CLASS(1) (Graph) [GRAPHIC OMITTED] - ------------------------------------------- Annualized Cumulative Inception Inception to Date to Date - ------------------------------------------- 21.82% 8.91% Without load - ------------------------------------------- 17.65% 6.91% With load - ------------------------------------------- Comparison of Change in the Value of a $10,000 Investment Period Ended Growth of $10,000 Growth of $10,000 Invested in the STI Invested in the MSCI Classic International EAFE Index, in US $ Equity Index Fund Flex Class 1/31/96 $10,000 $10,000 5/31/96 10,618 10,344 *Commenced operations December 1, 1995. (1)Commenced operations January 2, 1996. Past performance is no indication of future performance. The Fund's comparative benchmarks do not include the annual operating expenses incurred by the Fund. 13 STI CLASSIC SUNBELT EQUITY FUND ------------------------------- The STI Classic Sunbelt Equity Fund (the Fund) offers long-term investors the potential for above average returns by focusing on companies that possess positive earnings trends. The Fund's objective is to provide capital appreciation by investing in U.S. companies located in the Sunbelt region. The Fund's philosophy is based on the premise that a portfolio of companies with positive earnings characteristics, namely strong earnings growth and earnings momentum, will provide investors with superior performance over time. Our primary focus is on identifying and investing in those companies with strong characteristics and reasonable valuations. The Fund invests in small and mid-sized companies which are primarily headquartered or conduct the majority of their business in the southeastern region of the U.S. encompassing the twelve states from Texas, up to Virginia and down to Florida. The favorable economic and demographic trends of the Sunbelt region promote a healthy business climate, and may lead to above average investment opportunities. These trends include more favorable wage levels, an excellent transportation system, a rising average personal income, and a growing population. The Fund's investment universe consists of approximately 1,400 public companies, of which roughly 200 are covered extensively by our seven dedicated research analysts. Before a company can be considered for investment, it must satisfy initial screening criteria. These criteria include: five year operating history, market capitalization of at least $50 million, monthly trading volume of $20 million, management continuity and strong fundamental history. Declining interest rates and a healthy business climate during the last fiscal year led to strong performance for most of the market indices. More recently, the uncertainty surrounding the future state of the economy has led to upward pressure on interest rates. This rise in interest rates has negatively impacted the bond markets, yet the equity markets have continued to surge, albeit with an increase in volatility. The Fund with its "bottom-up" strategy of focusing on individual companies exhibiting strong earnings characteristics has performed well over the last twelve months. This strong performance may be due to the slowdown in earnings growth experienced by many companies, while the projected average earnings growth for the Fund remains in double digits. In closing, we think the Fund is attractive because it offers investors unique diversification and the potential for superior long-term appreciation. /s/ JAMES P. FOSTER James P. Foster Vice President 14 Shown immediately following the Advisor's Discussion of Fund Performance are three line graphs depicting the growth (including reinvestment of dividends and capital gains) of a hypothetical investment of $10,000 as compared with the growth of a hypothetical investment of $10,000 in the Fund's benchmark(s). TRUST CLASS (Graph) [GRAPHIC OMITTED] - ----------------------------------------------------------------------- Annualized Cumulative One Year Inception Inception Return to Date to Date - ----------------------------------------------------------------------- 43.19% 16.44% 44.21% - ----------------------------------------------------------------------- Comparison of Change in the Value of a $10,000 Investment Period Ended Growth of $10,000 Growth of $10,000 Invested in the Invested in the STI Classic S&P 600 Small Cap Sunbelt Equity Index Trust Class 1/31/94 $10,000 $10,000 5/31/94 9,530 9,209 5/31/95 9,893 10,096 5/31/96 14,165 13,966 INVESTOR CLASS (Graph) [GRAPHIC OMITTED] - ------------------------------------------------------------- Annualized Cumulative One Year Inception Inception Return to Date to Date - ------------------------------------------------------------- 42.58% 15.89% 42.58% Wiithout load - ------------------------------------------------------------- 37.21% 14.06% 37.23% With load - ------------------------------------------------------------- Comparison of Change in the Value of a $10,000 Investment Period Ended Growth of $10,000 Growth of $10,000 Invested in the Invested in the STI Classic S&P 600 Small Cap Sunbelt Equity Index Investor Class 1/31/94 $ 9,625 $10,000 5/31/94 9,162 9,209 5/31/95 9,455 10,096 5/31/96 13,481 13,966 FLEX CLASS* (Graph) [GRAPHIC OMITTED] - ----------------------------------------------------- Annualized Cumulative Inception Inception to Date to Date - ----------------------------------------------------- 39.86% 39.42% Without load - ----------------------------------------------------- 37.90% 37.42% With load - ----------------------------------------------------- Comparison of Change in the Value of a $10,000 Investment Period Ended Growth of $10,000 Growth of $10,000 Invested in the Invested in the STI Classic S&P 600 Small Cap Sunbelt Equity Index Flex Class 06/30/95 $10,000 $10,000 5/31/96 13,371 13,113 *Commenced operations June 5, 1995. Past performance is no indication of future performance. The Fund's comparative benchmarks do not include the annual operating expenses incurred by the Fund. 15 STI CLASSIC INVESTMENT GRADE TAX-EXEMPT BOND FUND ------------------------------------------------- The investment objective of the STI Classic Investment Grade Tax-Exempt Fund (the Fund) is to maximize the total rate of return consistent with the Fund's objectives and constraints. Total return numbers are the return on an investment for a period of time. Current yield is also an important objective of the Fund which is simply the annual dollar interest divided by the market price. The drawback with the current yield is that it does not recognize principal gains or losses. Total return numbers assume that a bondholder buys a bond, collects all interest payments and sells it at the end of a specific time period. Investors should consider total return performance and compare it to other funds and indices to determine if they are receiving an adequate rate of return for the risk being taken. As of May 31, 1996, the Fund had an average maturity of approximately eight years and realized a one year total return of 5.40% based on net asset value of Investor Shares. The Lehman Brothers 5 year Municipal GO Bond Index had total return of 4.74% (which does not include operating expenses), and the Lipper Intermediate Debt Municipal Average had an average return of 3.86% for the year ending May 31, 1996. Our philosophy of investing in the municipal bond market is to limit risk as much as possible. We do not make major maturity shifts. We will bias the portfolio based upon our near term fundamental and technical analysis, however, these will be moderate maturity shifts. Our style of investing enables us to enhance performace by utilizing various techniques. One such technique is emphasizing cheap sectors of the yield curve. Another is to be a relative value investor, we try to overweight undervalued sectors of the market and to underweight overvalued sectors. Also, we take advantage of changes in yield spreads. We buy specific bonds when spreads are trading historically wide and sell when the spreads are trading historically narrow. Credit analysis is an important technique especially in today's market. We try to identify and invest in imporving credits and avoid those credits which are deteriorating. The underlying concept to all these techniques is to enhance total return without adding risk. The past year has been an extremely volatile and challenging year for the municipal bond market. During the second half of 1995 individual investors, who play a dominant role in the municipal bond market, tended to shun the product during that period as a result of declining yields, a powerful equity market and fears regarding tax reform. That pattern kept municipal yields artificially high. However, during the first several months of 1996 we have seen the municipal bond market outperform relative to taxables. The catalyst for the municipal market's strong relative performance was a substantially diminished fear of tax reform. Other factors contributing to the municipal outperformance are: sparse new issue supply, higher interest rates and seasonal heavy cash flows into investors hands as a result of bond calls, maturities, and coupon payments. During the third quarter of 1995 the Fund was managed in a defensive style due to the talk of tax-reform risks. The Portfolio consisted of mainly high quality bonds with short to intermediate maturities. This enabled the Fund to perform well in an adverse municipal bond market environment. In the fourth quarter concerns of tax-reform subsided and we extended the duration of the Fund. This enabled the Fund to fully participate in the year-end bond market rally. In 1996 we became defensive and established a neutral or short duration for the Fund. We remain diversified throughout the yield curve and remain invested in high quality bonds. /s/ RONALD H. SCHWARTZ Ronald H. Schwartz, CFA Senior Vice President 16 Shown immediately following the Advisor's Discussion of Fund Performance are three line graphs depicting the growth (including reinvestment of dividends and capital gains) of a hypothetical investment of $10,000 as compared with the growth of a hypothetical investment of $10,000 in the Fund's benchmark(s). TRUST CLASS (Graph) [GRAPHIC OMITTED] - ----------------------------------------------------------------------- Annualized Cumulative One Year Inception Inception Return to Date to Date - ----------------------------------------------------------------------- 5.82% 5.63% 15.36% - ------------------------------------------------------------------------ Comparison of Change in the Value of a $10,000 Investment
Period Ended Growth of $10,000 Growth of $10,000 Growth of $10,000 Lipper Invested in the STI Invested in the Lehman Intermediate Municipal Classic Investment Grade Brothers 5 Year G.O. Funds Average Tax-Exempt Bond Fund Index Trust Class 10/31/93 $10,000 $10,000 $10,000 5/31/94 9,976 9,943 9,831 5/31/95 10,995 10,627 10,512 5/31/96 11,635 11,131 10,918
INVESTOR CLASS (Graph) [GRAPHIC OMITTED] - ---------------------------------------------------------------------------- Annualized Annualized Cumulative One Year 3 Year Inception Inception Return Return to Date to Date - ---------------------------------------------------------------------------- 5.40% 6.87% 8.08% 36.21% Wiithout load - ---------------------------------------------------------------------------- 1.45% 5.52% 7.05% 31.09% With load - ---------------------------------------------------------------------------- Comparison of Change in the Value of a $10,000 Investment
Period Ended Growth of $10,000 Growth of $10,000 Growth of $10,000 Lipper Invested in the STI Invested in the Lehman Intermediate Municipal Classic Investment Grade Brothers 5 Year G.O. Funds Average Tax-Exempt Bond Fund Index Investor Class 6/30/92 $ 9,625 $10,000 $10,000 5/31/93 10,731 10,778 10,879 5/31/94 11,308 11,112 11,194 5/31/95 12,428 11,877 11,970 5/31/96 13,099 12,440 12,432
FLEX CLASS* (Graph) [GRAPHIC OMITTED] - ----------------------------------------------------- Annualized Cumulative Inception Inception to Date to Date - ----------------------------------------------------- 4.91% 4.91% Without load - ----------------------------------------------------- 2.95% 2.95% With load - ----------------------------------------------------- Comparison of Change in the Value of a $10,000 Investment
Period Ended Growth of $10,000 Growth of $10,000 Growth of $10,000 Lipper Invested in the STI Invested in the Lehman Intermediate Municipal Classic Investment Grade Brothers 5 Year G.O. Funds Average Tax-Exempt Bond Fund Index Flex Class 6/30/95 $10,000 $10,000 $10,000 5/31/96 10,341 10,465 10,424
*Commenced operations June 1, 1995. Past performance is no indication of future performance. The Fund's comparative benchmarks do not include the annual operating expenses incurred by the Fund. 17 STI CLASSIC FLORIDA TAX-EXEMPT BOND FUND ---------------------------------------- The investment objective of the STI Classic Florida Tax-Exempt Bond Fund (the Fund) is to maximize the total rate of return consistent with the Fund's objectives and constraints. Total rate of return numbers are an average return on an investment for a period of time. Current yield is also an important objective of the Fund which is simply the annual dollar interest divided by the market price. The drawback with the current yield is that it does not recognize principal gains or losses. Total return numbers assume that a bondholder buys a bond, collects all interest payments and sells it at the end of a specific time period. Investors should consider total return performance and compare it to other funds and indices to determine if they are receiving an adequate rate of return for the risk being taken. As of May 31, 1996, the Fund had an average maturity of approximately twelve years and realized a one year total return of 3.87% based on net asset value of Trust Shares. The Lehman 10 year Municipal Bond Index had total return of 4.73% (which does not include operating expenses), and the Lipper Florida Municipal Debt Average had an average return of 3.29% for the year ending May 31, 1996. Our philosophy of investing in the municipal bond market is to limit risk as much as possible. We do not make major maturity shifts. We will bias the portfolio based upon our near term fundamental and technical analysis, however, these will be moderate maturity shifts. Our style of investing enables us to enhance performance by utilizing various techniques. One such technique is emphasizing cheap sectors of the yield curve. Another is to be a relative value investor, we try to overweight undervalued sectors of the market and to underweight overvalued sectors. Also, we take advantage of changes in yield spreads. We buy specific bonds when spreads are trading historically wide and sell when the spreads are trading historically narrow. Credit analysis is an important technique especially in today's market. We try to identify and invest in improving credits and avoid those credits which are deteriorating. The underlying concept to all these techniques is to enhance total return without adding risk. The past year has been extremely volatile and challenging year for the municipal bond market. During the second half of 1995 individual investors, who play a dominant role in the municipal bond market, tended to shun the product during that period as a result of declining yields, a powerful equity market, and fears regarding tax reform. That pattern kept municipal yields artificially high. However, during the first several months of 1996 we have seen the municipal bond market outperform relative to taxables. The catalyst for the municipal market's strong relative performance was a substantially diminished fear of tax reform. Other factors contributing to the municipal outperformance are: sparse new issue supply, higher interest rates and seasonal heavy cash flows into investors hands as a result of bond calls, maturities, and coupon payments. During the third quarter of 1995 the Fund was managed in a defensive style due to the talk of tax-reform risks. The Fund consisted of mainly high quality bonds with short to intermediate maturities. This enabled the Fund to perform well in an adverse municipal bond market environment. In the fourth quarter concerns of tax-reform subsided and we extended the duration of the Fund. This enabled the Fund to fully participate in the year-end bond market rally. In 1996 we became defensive and established a neutral or short duration for the Fund. We remain diversified throughout the yield curve and remain invested in high quality bonds. /s/ RONALD H. SCHWARTZ Ronald H. Schwartz, CFA Senior Vice President 18 Shown immediately following the Advisor's Discussion of Fund Performance are three line graphs depicting the growth (including reinvestment of dividends and capital gains) of a hypothetical investment of $10,000 as compared with the growth of a hypothetical investment of $10,000 in the Fund's benchmark(s). TRUST CLASS (Graph) [GRAPHIC OMITTED] - ----------------------------------------------------------------------- Annualized Cumulative One Year Inception Inception Return to Date to Date - ----------------------------------------------------------------------- 3.87% 5.01% 12.14% - ------------------------------------------------------------------------ Comparison of Change in the Value of a $10,000 Investment
Period Ended Growth of $10,000 Growth of $10,000 Growth of $10,000 Lipper Invested in the STI Invested in the Lehman Florida Municipal Debt Classic Florida 10-Year Municipal Bond Average Tax-Exempt Bond Fund Index Trust Class 1/31/94 $10,000 $10,000 $10,000 5/31/94 9,786 9,533 9,348 5/31/95 10,692 10,389 10,196 5/31/96 11,106 10,880 10,532
INVESTOR CLASS (Graph) [GRAPHIC OMITTED] - ----------------------------------------------------------- Annualized Cumulative One Year Inception Inception Return to Date to Date - ----------------------------------------------------------- 3.76% 4.82% 11.77% Wiithout load - ----------------------------------------------------------- -0.16% 3.13% 7.57% With load - ----------------------------------------------------------- Comparison of Change in the Value of a $10,000 Investment
Period Ended Growth of $10,000 Growth of $10,000 Growth of $10,000 Lipper Invested in the STI Invested in the Lehman Florida Municipal Debt Classic Florida 10-Year Municipal Bond Average Tax-Exempt Bond Fund Index Investor Class 1/31/94 $ 9,625 $10,000 $10,000 5/31/94 9,418 9,533 9,348 5/31/95 10,270 10,389 10,196 5/31/96 10,656 10,880 10,532
FLEX CLASS* (Graph) [GRAPHIC OMITTED] - ----------------------------------------------------- Annualized Cumulative Inception Inception to Date to Date - ----------------------------------------------------- 3.27% 3.27% Without load - ----------------------------------------------------- 1.29% 1.29% With load - ----------------------------------------------------- Comparison of Change in the Value of a $10,000 Investment
Period Ended Growth of $10,000 Growth of $10,000 Growth of $10,000 Lipper Invested in the STI Invested in the Lehman Florida Municipal Debt Classic Florida 10-Year Municipal Bond Average Tax-Exempt Bond Fund Index Flex Class 6/30/95 $10,000 $10,000 $10,000 5/31/96 10,224 10,539 10,477
*Commenced operations June 1, 1995. Past performance is no indication of future performance. The Fund's comparative benchmarks do not include the annual operating expenses incurred by the Fund. 19 STI CLASSIC TENNESSEE TAX-EXEMPT BOND FUND ------------------------------------------ The STI Classic Tennessee Tax-Exempt Bond Fund (the Fund) seeks to provide current income exempt from federal and state income tax for Tennessee residents without undue investment risk. The income tax exemption objective was met except for income generated on cash reserves. As of May 31, 1996, the Fund had an average maturity of approximately twelve years. The one year total return was 3.28% for Investor Shares and 3.43% for Trust Shares based on net asset value. The Lehman 10-Year Municipal Bond Index had a total return of 4.73% (which does not include operating expenses), and the Lipper Tennessee Municipal Debt Average had an average total return of 3.63% for the year ending May 31, 1996. Our philosophy of investing in the municipal bond market is to limit risk as much as possible. We do not make major maturity shifts. We will bias the portfolio based upon our near term fundamental and technical analysis, however, these will be moderate maturity shifts. Our style of investing enables us to enhance performance by emphasizing cheap sectors of the yield curve, overweighting undervalued sectors and underweighting overvalued sectors. Another technique is credit analysis, where we try to identify and invest in improving credits and avoid those credits which are deteriorating. This past year has seen a continuance in the volatility experienced in 1994-1995. Several factors have been responsible for this volatility, including changing outlooks for inflation and recession, tax-reform, and relatively low new issuance of municipal bonds. Fears of inflation in mid-1995 changed in early 1996 to talk of a recession and once again returned to an inflationary mode in recent weeks. Over the past year, AAA general obligation bond yields have increased 20 basis points, however they have fallen as much as 25 basis points in the interim. Also in this past year, talk of tax reform reached a fevered pitch as Steve Forbes focused upon it in his campaign for the presidency. The tax-reform issue contributed to municipal bonds trading cheap to treasuries in late 1995 and early 1996. Once Mr. Forbes dropped out of the race, the issue dropped almost out of sight and municipals began to outperform treasuries because of the relatively light volume of new issuance and strong demand for municipal bonds. The low supply of new issuance particularly applies to Tennessee residents, as new issuance in this state accounts for less than one percent of total new issuance for the entire United States. During the year, the focus of the Fund was to purchase high quality bonds with good call protection and to slightly increase exposure to bonds in the 20 year maturity range, where the yield curve appeared to be trading cheap versus the treasury market. The slight lengthening of the average maturity and duration, also brought the structure of the Fund more in line with the structure of the Lipper Tennessee Municipal Debt Average. For the majority of the year, the Fund's average maturity was shorter than both indices, so that it did not fully participate in the rally which occurred in mid-to-late 1995. /s/ PATRICIA LOVE Patricia Love Vice President /s/ RONALD H. SCHWARTZ Ronald H. Schwartz, CFA Senior Vice President 20 Shown immediately following the Advisor's Discussion of Fund Performance are three line graphs depicting the growth (including reinvestment of dividends and capital gains) of a hypothetical investment of $10,000 as compared with the growth of a hypothetical investment of $10,000 in the Fund's benchmark(s). TRUST CLASS (Graph) [GRAPHIC OMITTED] - ----------------------------------------------------------------------- Annualized Cumulative One Year Inception Inception Return to Date to Date - ----------------------------------------------------------------------- 3.43% 1.94% 4.59% - ----------------------------------------------------------------------- Comparison of Change in the Value of a $10,000 Investment
Period Ended Growth of $10,000 Growth of $10,000 Growth of $10,000 Lipper Invested in the STI Invested in the Lehman Tennessee Municipal Debt Classic Tennessee 10-Year Municipal Bond Average Tax-Exempt Bond Fund Index Trust Class 1/31/94 $10,000 $10,000 $10,000 5/31/94 9,282 9,533 9,428 5/31/95 10,040 10,389 10,175 5/31/96 10,385 10,880 10,545
INVESTOR CLASS (Graph) [GRAPHIC OMITTED] - ------------------------------------------------------------ Annualized Cumulative One Year Inception Inception Return to Date to Date - ------------------------------------------------------------ 3.28% 1.94% 4.64% Wiithout load - ------------------------------------------------------------ -0.58% 0.30% 0.71% With load - ------------------------------------------------------------ Comparison of Change in the Value of a $10,000 Investment
Period Ended Growth of $10,000 Growth of $10,000 Growth of $10,000 Lipper Invested in the STI Invested in the Lehman Tennessee Municipal Debt Classic Tennessee 10-Year Municipal Bond Average Tax-Exempt Bond Fund Index Investor Class 1/31/94 $9,625 $10,000 $10,000 5/31/94 8,942 9,533 9,428 5/31/95 9,679 10,389 10,175 5/31/96 9,996 10,880 10,545
FLEX CLASS* (Graph) [GRAPHIC OMITTED] - ------------------------------------------- Annualized Cumulative Inception Inception to Date to Date - ------------------------------------------- 1.96% 1.98% Without load - ------------------------------------------- 0.00% 0.00% With load - ------------------------------------------- Comparison of Change in the Value of a $10,000 Investment
Period Ended Growth of $10,000 Growth of $10,000 Growth of $10,000 Lipper Invested in the STI Invested in the Lehman Tennessee Municipal Debt Classic Tennessee 10-Year Municipal Bond Average Tax-Exempt Bond Fund Index Flex Class 6/30/95 $10,000 $10,000 $10,000 5/31/96 10,201 10,539 10,469
*Commenced operations June 5, 1995. Past performance is no indication of future performance. The Fund's comparative benchmarks do not include the annual operating expenses incurred by the Fund. 21 STI CLASSIC GEORGIA TAX-EXEMPT BOND FUND ---------------------------------------- The investment objective of STI Classic Georgia Tax-Exempt Bond Fund (the Fund) seeks to provide current income exempt from federal and state income taxes for Georgia residents without undue investment risk. Total return for the Fund includes current income as well as changes in the value of the Fund's assets. As of May 31, 1996 the Fund's Trust Class had an average maturity of 9.2 years and a one year annualized total return of 3.89% which compared very favorably with to the Lipper Georgia Municipal Debt Average at 3.63%. For the same period the Lehman 10-year Municipal Bond Index, which does not include Fund expenses, had an annualized return of 4.72%. Our investment philosophy in the municipal market is to provide our shareholders, as conservative investors, with high quality investments, income stability, and a favorable risk/return ratio. In keeping with our philosophy we look for value within the state of Georgia utilizing internal as well as outside credit analysis to identify areas in the state that are possible quality upgrade candidates, monitoring shifts within the Georgia market which may create investment opportunities and subsequently allow the Fund to achieve gains, while at the same time maintaining a geographical diversity to minimize credit risk. Given our philosophy, and in light of the market's volatile nature in recent years, we are maintaining a relatively defensive position. The average maturity and duration may vary slightly in the future however, depending on our outlook for the market. The municipal market was volatile in the second half of 1995 stemming from fears of possible radical tax-reform and conflicting reports regarding the strength of the economy. The yield spread between Treasury bonds and municipals narrowed dramatically reflecting continuing concerns as to the outcome of future tax-reform debates. The Federal Reserve eased interest rates in late December 1995, bolstering weakening prices. It was expected at that time that the Federal Reserve would repeat that move several times in early 1996 which did not happen. In the first half of 1996, fears of tax-reform faded, but signs were present that the economy was picking up strength resulting in renewed fears of rising inflation among investors. This perception on investors part drove municipal prices down. The absence of Fed activity in early 1996 also played a part in the decline in prices during this period. As volatile as the bond market was during the year, yields overall for the one year period ending May 31, 1996 rose by only fifteen basis points in the ten year range. The Fund remained slightly defensive throughout the fiscal year. This strategy protected our participants from undue principal risk as the market declined in value. We expect more volatility in the market going forward into the second half of 1996. Our strategy is to maintain a conservative approach in our Fund, given the volatility in the marketplace. Ongoing campaign debates regarding tax-reform proposals, continued perception of rising inflation and supply and demand factors could keep the municipal market in a trading range for the rest of 1996. /s/ GAY B. CASH Gay B. Cash Vice President 22 Shown immediately following the Advisor's Discussion of Fund Performance are three line graphs depicting the growth (including reinvestment of dividends and capital gains) of a hypothetical investment of $10,000 as compared with the growth of a hypothetical investment of $10,000 in the Fund's benchmark(s). TRUST CLASS (Graph) [GRAPHIC OMITTED] - ----------------------------------------------------------------------- Annualized Cumulative One Year Inception Inception Return to Date to Date - ----------------------------------------------------------------------- 3.89% 2.57% 6.19% - ----------------------------------------------------------------------- Comparison of Change in the Value of a $10,000 Investment
Period Ended Growth of $10,000 Growth of $10,000 Growth of $10,000 Lipper Invested in the STI Invested in the Lehman Georgia Municipal Debt Classic Georgia 10-Year Municipal Bond Average Tax-Exempt Bond Fund Index Trust Class 01/31/94 $10,000 $10,000 $10,000 5/31/94 9,529 9,533 9,338 5/31/95 10,190 10,389 10,124 5/31/96 10,587 10,880 10,492
INVESTOR CLASS (Graph) [GRAPHIC OMITTED] - ------------------------------------------------------------- Annualized Cumulative One Year Inception Inception Return to Date to Date - ------------------------------------------------------------- 3.69% 2.46% 5.90% Wiithout load - ------------------------------------------------------------- -0.24% 0.81% 1.92% With load - ------------------------------------------------------------- Comparison of Change in the Value of a $10,000 Investment
Period Ended Growth of $10,000 Growth of $10,000 Growth of $10,000 Lipper Invested in the STI Invested in the Lehman Georgia Municipal Debt Classic Georgia 10-Year Municipal Bond Average Tax-Exempt Bond Fund Index Investor Class 01/31/94 $ 9,625 $10,000 $10,000 5/31/94 9,171 9,533 9,338 5/31/95 9,786 10,389 10,124 5/31/96 10,147 10,880 10,492
FLEX CLASS* (Graph) [GRAPHIC OMITTED] - ------------------------------------------- Annualized Cumulative Inception Inception to Date to Date - ------------------------------------------- 2.26% 2.22% Without load - ------------------------------------------- 0.26% 0.26% With load - ------------------------------------------- Comparison of Change in the Value of a $10,000 Investment
Period Ended Growth of $10,000 Growth of $10,000 Growth of $10,000 Lipper Invested in the STI Invested in the Lehman Georgia Municipal Debt Classic Georgia 10-Year Municipal Bond Average Tax-Exempt Bond Fund Index Flex Class 6/30/95 $10,000 $10,000 $10,000 5/31/96 10,170 10,539 10,479
*Commenced operations June 6, 1995. Past performance is no indication of future performance. The Fund's comparative benchmarks do not include the annual operating expenses incurred by the Fund. 23 STI CLASSIC INVESTMENT GRADE BOND FUND -------------------------------------- The STI Classic Investment Grade Bond Fund (the Fund) seeks to provide as high a level of total return through current income and capital appreciation as is consistent with the preservation of capital primarily through investment in investment grade fixed income securities. Total return includes not only the current income but also the changes in value of the assets held by the Fund. For the year ended May 31, 1996 the Fund's Trust Class had a total return of 4.02% versus an average return of 3.75% for the Lipper Intermediate Investment Grade Debt Average category. For the same period the Lehman Government/Corporate Index, which has no fees taken out, had an annualized return of 4.10%. During the second half of 1995 interest rates declined, but the first half of 1996 saw an increase in interest rates. The fixed income market seems to be continuing its trend of volatility we have seen over the last few years. Corporate bonds continue to be relatively expensive on a historic basis, because of this we continue to limit corporate positions mainly to the short end of the maturity range. This has limited total return somewhat. Even though corporate securities are expensive they have continued to perform well. Mortgage securities seem fairly valued and we have added mortgage positions over the last year. They have performed well and added materially to total return. Changing perceptions of economic growth and Federal Reserve policy have caused the market to remain volatile. Early in 1996 expectations were that the economy was headed toward recession. A few months later the concern was that the economy was growing too rapidly and the Fed might need to tighten. As 1996 progresses we expect these changes in psychology to keep volatility relatively high. The Fund continues to be managed with only moderate shifts in the average maturity and duration. Total return is enhanced through yield curve analysis (monitoring and analyzing the risk/reward tradeoffs of different maturity sectors), sector rotation, credit analysis, and other low risk strategies. By actively pursuing these strategies the Fund strives to add to total return while reducing risk. /S/ L. EARL DENNEY L. Earl Denney, CFA Executive Vice President 24 Shown immediately following the Advisor's Discussion of Fund Performance are three line graphs depicting the growth (including reinvestment of dividends and capital gains) of a hypothetical investment of $10,000 as compared with the growth of a hypothetical investment of $10,000 in the Fund's benchmark(s). TRUST CLASS (Graph) [GRAPHIC OMITTED] - ----------------------------------------------------------------------- Annualized Annualized Cumulative One Year 3 Year Inception Inception Return Return to Date to Date - ----------------------------------------------------------------------- 4.02% 5.13% 6.07% 25.66% - ----------------------------------------------------------------------- Comparison of Change in the Value of a $10,000 Investment
Period Ended Growth of $10,000 Growth of $10,000 Growth of $10,000 Lipper Invested in the STI Invested in the Lehman Intermediate Investment Classic Investment Grade Government/Corporate Grade Debt Average Bond Trust Class Index 7/31/92 $10,000 $10,000 $10,000 05/31/93 10,736 10,788 10,677 5/31/94 10,861 10,897 10,742 5/31/95 11,990 12,162 11,815 5/31/96 12,472 12,660 12,258
INVESTOR CLASS (Graph) [GRAPHIC OMITTED] - ---------------------------------------------------------------------------- Annualized Annualized Cumulative One Year 3 Year Inception Inception Return Return to Date to Date - ---------------------------------------------------------------------------- 3.50% 4.73% 5.82% 25.20% Wiithout load - ---------------------------------------------------------------------------- -0.38% 3.40% 4.81% 20.50% With load - ---------------------------------------------------------------------------- Comparison of Change in the Value of a $10,000 Investment
Period Ended Growth of $10,000 Growth of $10,000 Growth of $10,000 Lipper Invested in the STI Invested in the Lehman Intermediate Investment Classic Investment Grade Government/Corporate Grade Debt Average Bond Investor Class Index 6/30/92 $ 9,625 $10,000 $10,000 05/31/93 10,486 11,064 10,917 5/31/94 10,577 11,176 10,984 5/31/95 11,639 12,473 12,081 5/31/96 12,046 12,984 12,534
FLEX CLASS* (Graph) [GRAPHIC OMITTED] - ------------------------------------------------------ Annualized Cumulative Inception Inception to Date to Date - ------------------------------------------------------ 2.50% 2.45% Without load - ------------------------------------------------------ 0.51% 0.51% With load - ------------------------------------------------------ Comparison of Change in the Value of a $10,000 Investment
Period Ended Growth of $10,000 Growth of $10,000 Growth of $10,000 Lipper Invested in the STI Invested in the Lehman Intermediate Investment Classic Investment Grade Government/Corporate Grade Debt Average Bond Flex Class Index 6/30/95 $10,000 $10,000 $10,000 5/31/96 10,032 10,327 10,313
*Commenced operations June 7, 1995. Past performance is no indication of future performance. The Fund's comparative benchmarks do not include the annual operating expenses incurred by the Fund. 25 STI CLASSIC SHORT-TERM BOND FUND -------------------------------- The investment objective of the STI Classic Short-Term Bond Fund (the Fund) is to provide as high a level of current income, relative to funds with like investment objectives, as is consistent with the preservation of capital primarily through investment in short to intermediate-term investment grade fixed income securities. The Fund attempts to capture the yield advantage which normally exists between money market instruments and short to intermediate-term bonds. The price volatility of short to intermediate-term bonds is fairly modest and over time it consistently has been offset by the incremental yield these instruments offer relative to money market securities. The Fund is managed from a total return perspective; that is, day to day decisions are made with a view towards maximizing income and price appreciation. The investment discipline applied in managing the Fund emphasizes adding value through yield curve, sector and credit analysis. Investments are made in those sectors, credits, and segments of the yield curve within the applicable universe which offer the most attractive risk/reward trade-offs. For example, we study historical yield spread data of the corporate and mortgage sectors and compare it with the current environment to identify buying and selling opportunities between various sectors. We also use internal credit analysis and screening to identify opportunities in corporate bonds. We look for those instruments that offer incremental yield for a given level of credit risk. The total return earned by the Fund (Trust Shares) over the past twelve months was 4.45%, as compared to 5.38% for the Salomon 1-3 year Treasury/Government Sponsored/Corporate Index, and 5.73% for the Salomon One-Year Treasury Benchmark On-the-Run. The Fund's return was competitive with money market funds despite the rise in short-term interest rates in the first half of 1996. Three to five year interest rates rose approximately one-half percent and the corresponding price decline of the bonds held by the Fund offset some of the income earned. We continue to emphasize high quality corporate securities to increase the yield of the Fund. /s/ AGNES G. PAMPUSH Agnes G. Pampush, CFA Vice President 26 Shown immediately following the Advisor's Discussion of Fund Performance are three line graphs depicting the growth (including reinvestment of dividends and capital gains) of a hypothetical investment of $10,000 as compared with the growth of a hypothetical investment of $10,000 in the Fund's benchmark(s). TRUST CLASS (Graph) [GRAPHIC OMITTED] - ---------------------------------------------------------- Annualized Annualized Cumulative One Year 3 Year Inception Inception Return Return to Date to Date - ---------------------------------------------------------- 4.45% 4.67% 4.66% 15.73% - ---------------------------------------------------------- Comparison of Change in the Value of a $10,000 Investment
Period Ended Growth of $10,000 Growth of $10,000 Growth of $10,000 Invested in the STI Invested in the Salomon Salomon One Year Classic Short-Term Bond 1-3 Year Treasury Benchmark Trust Class Treasury/Government On-the-Run Sponsored/ Corporate Index 3/31/93 $10,000 $10,000 $10,000 5/31/93 10,035 10,039 10,035 5/31/94 10,238 10,260 10,303 5/31/95 11,016 11,021 10,965 5/31/96 11,506 11,614 11,593
INVESTOR CLASS (Graph) [GRAPHIC OMITTED] - -------------------------------------------------------------------------------- Annualized Annualized Cumulative One Year 3 Year Inception Inception Return Return to Date to Date - -------------------------------------------------------------------------------- 4.23% 4.47% 4.30% 14.37% Without load - -------------------------------------------------------------------------------- 2.19% 3.78% 3.62% 12.03% With load - -------------------------------------------------------------------------------- Comparison of Change in the Value of a $10,000 Investment
Period Ended Growth of $10,000 Growth of $10,000 Growth of $10,000 Invested in the STI Invested in the Salomon Salomon One Year Classic Short-Term Bond 1-3 Year Treasury Benchmark Investor Class Treasury/Government On-the-Run Sponsored/ Corporate Index 03/31/93 $ 9,800 $10,000 $10,000 05/31/93 9,838 10,039 10,035 5/31/94 10,017 10,260 10,303 5/31/95 10,762 11,021 10,965 5/31/96 11,218 11,614 11,593
FLEX CLASS* (Graph) [GRAPHIC OMITTED] - ------------------------------------------------ Annualized Cumulative Inception Inception to Date to Date - ------------------------------------------------ 3.73% 3.54% Without load - ------------------------------------------------ 1.65% 1.56% With load - ------------------------------------------------ Comparison of Change in the Value of a $10,000 Investment
Period Ended Growth of $10,000 Growth of $10,000 Growth of $10,000 Invested in the STI Invested in the Salomon Salomon One Year Classic Short-Term Bond 1-3 Year Treasury Benchmark Flex Class Treasury/Government On-the-Run Sponsored/ Corporate Index 6/30/95 $10,000 $10,000 $10,000 5/31/96 10,159 10,481 10,511
*Commenced operations June 7, 1995. Past performance is no indication of future performance. The Fund's comparative benchmarks do not include the annual operating expenses incurred by the Fund. 27 STI CLASSIC SHORT-TERM U.S. TREASURY SECURITIES FUND ---------------------------------------------------- The investment objective of STI Classic Short-Term U.S. Treasury Securities Fund (the Fund) is to provide as high a level of current income, relative to funds with like investment objectives, as is consistent with the preservation of capital through investment exclusively in short-term U.S. Treasury securities. The goal of the Fund is to capture the yield advantage which normally exists between money market instruments and short-term bonds. The price volatility of short-term bonds is very modest and over time has consistently been offset by the incremental yield of these instruments relative to money market securities. The Fund is managed from a total return perspective, that is, day to day decisions are made with a view toward maximizing income and price appreciation. The investment discipline applied in managing the Fund emphasizes adding value through yield curve analysis. Investments are made in those segments of the yield curve within the applicable universe which offer the most attractive risk/reward trade-off. The total return earned by the Fund (Trust Shares) over the past twelve months was 4.73%, as compared to 5.38% for the Salomon 1-3 year Treasury/Government Sponsored/Corporate Index, and 5.67% for the Salomon 6-Month Treasury Bill Index.. The Fund's return was competitive with money market funds, despite the one half percent increase in two and three years interest rates, which depressed bond prices, and offset some of the income earned. /s/ AGNES G. PAMPUSH Agnes G. Pampush, CFA Vice President 28 Shown immediately following the Advisor's Discussion of Fund Performance are three line graphs depicting the growth (including reinvestment of dividends and capital gains) of a hypothetical investment of $10,000 as compared with the growth of a hypothetical investment of $10,000 in the Fund's benchmark(s). TRUST CLASS (Graph) [GRAPHIC OMITTED] - ----------------------------------------------------------- Annualized Annualized Cumulative One Year 3 Year Inception Inception Return Return to Date to Date - ----------------------------------------------------------- 4.73% 4.33% 4.19% 14.08% - ----------------------------------------------------------- Comparison of Change in the Value of a $10,000 Investment
Period Ended Growth of $10,000 Growth of $10,000 Growth of $10,000 Invested in the STI Invested in the Salomon Salomon 6 Month Treasury Classic Short-Term U.S. 1-3 Year Bill Index Treasury Securities Treasury/Government Trust Class Sponsored/ Corporate Index 03/31/93 $10,000 $10,000 $10,000 05/31/93 10,024 10,039 10,053 5/31/94 10,241 10,260 10,391 5/31/95 10,867 11,021 10,953 5/31/96 11,381 11,614 11,575
INVESTOR CLASS (Graph) [GRAPHIC OMITTED] - -------------------------------------------------------------------------------- Annualized Annualized Cumulative One Year 3 Year Inception Inception Return Return to Date to Date - -------------------------------------------------------------------------------- 4.52% 4.17% 4.03% 13.47% Without load - -------------------------------------------------------------------------------- 3.48% 3.83% 3.70% 12.35% With load - -------------------------------------------------------------------------------- Comparison of Change in the Value of a $10,000 Investment
Period Ended Growth of $10,000 Growth of $10,000 Growth of $10,000 Invested in the STI Invested in the Salomon Salomon 6 Month Treasury Classic Short-Term U.S. 1-3 Year Bill Index Treasury Securities Treasury/Government Investor Class Sponsored/ Corporate Index 03/31/93 $ 9,900 $10,000 $10,000 05/31/93 9,921 10,039 10,053 5/31/94 10,120 10,260 10,391 5/31/95 10,730 11,021 10,953 5/31/96 11,215 11,614 11,575
FLEX CLASS* (Graph) [GRAPHIC OMITTED] - ------------------------------------------------ Annualized Cumulative Inception Inception to Date to Date - ------------------------------------------------ 3.72% 3.51% Without load - ------------------------------------------------ 1.64% 1.54% With load - ------------------------------------------------ Comparison of Change in the Value of a $10,000 Investment
Period Ended Growth of $10,000 Growth of $10,000 Growth of $10,000 Invested in the STI Invested in the Salomon Salomon 6 Month Treasury Classic Short-Term U.S. 1-3 Year Bill Index Treasury Securities Flex Treasury/Government Class Sponsored/ Corporate Index 6/30/95 $10,000 $10,000 $10,000 5/31/96 10,157 10,481 10,516
*Commenced operations June 22, 1995. Past performance is no indication of future performance. The Fund's comparative benchmarks do not include the annual operating expenses incurred by the Fund. 29 STI CLASSIC LIMITED-TERM FEDERAL MORTGAGE SECURITIES FUND --------------------------------------------------------- The STI Classic Limited-Term Federal Mortgage Securities Fund (the Fund) seeks to provide as high a level of current income as is consistent with the preservation of capital by investing primarily in mortgage-related securities issued or guaranteed (as to the timely payment of principal and interest) by U.S. government agencies and instrumentalities. For the year ended May 31, 1996 the Fund's Trust Class had a cumulative total return of 4.84% versus an average return of 4.05% for the Lipper Short/Intermediate U.S. Government Average category. For the same period the Merrill Lynch 1-5 year Short/Intermediate U.S. Treasury Index, which has no fees taken out, had an annualized return of 4.92%. Bond market investors experienced considerable price return in the first half of the year as market participants expected the Federal Reserve to continue easing rates in an effort to guide the economy to a soft landing and avert a recession. However, these slowing economic concerns proved to be incorrect in March as strong jobs data and ensuing economic releases indicated that economic growth was indeed stronger than expected. As a result the Federal Reserve signaled that it would no longer ease rates. With these events the bond market sold off sharply retracting the year's gains. The managers maintained the long term target average maturity/duration of the Fund making slight adjustments only. Mortgage securities, which had underperformed other market sectors earlier in the year, performed very well as more investors looked for yield to offset principal losses. During this time, the Fund managers continued to add these securities to the core position in mortgages thereby enhancing the Fund's performance with additional income. The Fund continues to be managed with only moderate shifts in the average maturity and duration. Return is enhanced through income via participation in mortgage securities. Additionally, return is enhanced by adjusting sector weighting and yield curve analysis (monitoring and analyzing the risk/reward trade-off of different maturity sectors). By actively pursuing these strategies, the Fund strives to add income and total return while reducing risk. /s/ L. EARL DENNEY L. Earl Denney, CFA Executive Vice President /s/ DAVID WEST David West, CFA Vice President 30 Shown immediately following the Advisor's Discussion of Fund Performance are three line graphs depicting the growth (including reinvestment of dividends and capital gains) of a hypothetical investment of $10,000 as compared with the growth of a hypothetical investment of $10,000 in the Fund's benchmark(s). TRUST CLASS (Graph) [GRAPHIC OMITTED] - ---------------------------------------------- Annualized Cumulative One Year Inception Inception Return to Date to Date - ---------------------------------------------- 4.84% 6.21% 12.70% - ---------------------------------------------- Comparison of Change in the Value of a $10,000 Investment
Period Ended Growth of $10,000 Growth of $10,000 Growth of $10,000 Lipper Invested in the STI Invested in the Merrill Short/Intermediate U.S. Classic Limited-Term Lynch 1-5 Year Government Average Federal Mortgage Short/Intermediate U.S. Securities Trust Class Treasury Index 06/30/94 $10,000 $10,000 $10,000 5/31/95 10,756 10,809 10,737 5/31/96 11,276 11,341 11,171
INVESTOR CLASS (Graph) [GRAPHIC OMITTED] - -------------------------------------------------------------- Annualized Cumulative One Year Inception Inception Return to Date to Date - -------------------------------------------------------------- 4.59% 6.45% 12.39% Without load - -------------------------------------------------------------- 1.97% 4.99% 9.53% With load - -------------------------------------------------------------- Comparison of Change in the Value of a $10,000 Investment
Period Ended Growth of $10,000 Growth of $10,000 Growth of $10,000 Lipper Invested in the STI Invested in the Merrill Short/Intermediate U.S. Classic Limited-Term Lynch 1-5 Year Government Average Federal Mortgage Short/Intermediate U.S. Securities Investor Class Treasury Index 07/31/94 $ 9,750 $10,000 $10,000 5/31/95 10,440 10,696 10,634 5/31/96 10,919 11,222 11,064
FLEX CLASS* (Graph) [GRAPHIC OMITTED] - ----------------------------------------------------------------------- Annualized Cumulative Inception Inception to Date to Date - ----------------------------------------------------------------------- 4.10% 4.03% Without load - ----------------------------------------------------------------------- 2.09% 2.06% With load - ----------------------------------------------------------------------- Comparison of Change in the Value of a $10,000 Investment
Period Ended Growth of $10,000 Growth of $10,000 Growth of $10,000 Lipper Invested in the STI Invested in the Merrill Short/Intermediate U.S. Classic Limited-Term Lynch 1-5 Year Government Average Federal Mortgage Short/Intermediate U.S. Securities Flex Class Treasury Index 6/30/95 $10,000 $10,000 $10,000 5/31/96 10,193 10,431 10,354
*Commenced operations June 7, 1995. Past performance is no indication of future performance. The Fund's comparative benchmarks do not include the annual operating expenses incurred by the Fund. 31 STI CLASSIC U.S. GOVERNMENT SECURITIES FUND ------------------------------------------- The objective for the STI Classic U.S. Government Securities Fund (the Fund) is to provide a high level of income consistent with the preservation of capital by investing primarily in obligations issued or guaranteed by the U.S. Government or its agencies or instrumentalities. The Fund met its objectives for the fiscal year of operations ending May 31, 1996. The Fund (Trust Class) had an annualized inception-to-date total return of 6.21%. In addition, the Fund was comprised of 37% U.S. Treasuries and 54% Government Agency Mortgage-Backed Securities. The last four quarters have been characterized by a great deal of volatility in interest rates and fixed income returns. The third and fourth quarter of 1995 experienced strong positive returns for fixed income investors. Conversely, the first and second quarter of 1996 experienced a rise in interest rates due to fears of a stronger than expected economy that might produce higher inflation. Thus far, these fears appear overblown and we feel interest rates will start to fall during the second half of 1996. The Fund has been taking advantage of these higher yields to increase income for the shareholders. Our current strategy is to purchase mortgage-backed securities which offer attractive yields versus alternatives. /s/ CHARLES B. LEONARD Charles B. Leonard, CFA First Vice President /s/ MICHAEL FORD Michael Ford Associate 32 Shown immediately following the Advisor's Discussion of Fund Performance are three line graphs depicting the growth (including reinvestment of dividends and capital gains) of a hypothetical investment of $10,000 as compared with the growth of a hypothetical investment of $10,000 in the Fund's benchmark(s). TRUST CLASS (Graph) [GRAPHIC OMITTED] - ----------------------------------------------- Annualized Cumulative One Year Inception Inception Return to Date to Date - ----------------------------------------------- 2.77% 6.21% 11.65% - ----------------------------------------------- Comparison of Change in the Value of a $10,000 Investment Period Ended Growth of $10,000 Growth of $10,000 Invested in the STI Invested in the Lipper Classic U.S. Government Intermediate Government Securities Trust Class Average 8/31/94 $10,000 $10,000 5/31/95 10,832 10,752 5/31/96 11,132 11,101 INVESTOR CLASS (Graph) [GRAPHIC OMITTED] - ----------------------------------------------------------------------- One Year Annualized Cumulative Return Inception Inception to Date to Date - ----------------------------------------------------------------------- 2.47% 5.54% 11.29% Without load - ----------------------------------------------------------------------- -1.38% 3.52% 7.11% With load - ----------------------------------------------------------------------- Comparison of Change in the Value of a $10,000 Investment Period Ended Growth of $10,000 Growth of $10,000 Invested in the STI Invested in the Lipper Classic U.S. Government Intermediate Government Securities Investor Class Average 6/30/94 $ 9,625 $10,000 5/31/95 10,571 10,916 5/31/96 10,832 11,271 FLEX CLASS* (Graph) [GRAPHIC OMITTED] - ----------------------------------------------------------------------- Annualized Cumulative Inception Inception to Date to Date - ----------------------------------------------------------------------- 1.42% 1.39% Without load - ----------------------------------------------------------------------- -0.54% -0.53% With load - ----------------------------------------------------------------------- Flex Class* Comparison of Change in the Value of a $10,000 Investment Period Ended Growth of $10,000 Growth of $10,000 Invested in the STI Invested in the Lipper Classic U.S. Government Intermediate Government Securities Flex Class Average 6/30/95 $10,000 $10,000 5/31/96 9,944 10,259 *Commenced operations June 7, 1995. Past performance is no indication of future performance. The Fund's comparative benchmarks do not include the annual operating expenses incurred by the Fund. 33 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 over time based on the current market rates and conditions and on our market outlook. The Federal Reserve lowered the Federal Funds Rate three times during the fiscal year ending May 31, 1996, with the last cut in rates on January 31, 1996. Interest rates on short-term money market securities have followed the decline in the Fed Funds Rate. During this period, the Fund has extended its average maturity in order to minimize the impact of the declining rates on the yield of the Fund. This strategy has allowed the Fund to maintain a very competitive yield. 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. Treasury securities, U.S. Government Subsidiary Corporation securities that are backed by the full faith and credit of the U.S. Government, and repurchase agreements ("repos") collateralized by U.S. Treasury obligations and U.S. Government Subsidiary Corporation securities. 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 over time based on the current market rates and conditions and our market outlook. The Federal Reserve lowered the Federal Funds Rate three times during the fiscal year ending May 31, 1996, with the last cut in rates on January 31, 1996. Interest rates on short-term money market securities have followed the decline in the Fed Funds Rate. During this period, the Fund has extended its average maturity in order to minimize the impact of the declining rates on the yield of the Fund. This strategy has allowed the Fund to maintain a very competitive yield. /s/ DAVID S. YEALY David S. Yealy Vice President 34 STI CLASSIC TAX-EXEMPT MONEY MARKET FUND ---------------------------------------- The STI Classic Tax-Exempt Money Market Fund (the Fund) seeks to provide a high level of current income exempt from Federal income tax while preserving capital and liquidity. The Fund invests in high quality, U.S. dollar-denominated municipal securities of issuers located in all fifty states, the District of Columbia, and Puerto Rico. The Federal Reserve lowered the Federal Funds Rate three times during the fiscal year ending May 31, 1996, with the last cut in rates on January 31, 1996. Interest rates on short-term tax-exempt money market securities have declined during this period in response to the drop in the Fed Funds Rate but not as much as for taxable securities due to an increase in supply of short-term tax-exempt securities. During this period, the Fund has extended its average maturity in order to minimize the impact of the declining rates on the yield of the Fund. This strategy has allowed the Fund to maintain a very competitive yield. /s/ MARY F. CERNILLI Mary F. Cernilli Associate 35 This page intentionally left blank. 36 REPORT OF INDEPENDENT PUBLIC ACCOUNTANTS To the Shareholders and Board of Trustees of STI Classic Funds: We have audited the accompanying statements of net assets of the Value Income Stock, Mid-Cap Equity, Capital Growth, Balanced, International Equity Index, International Equity, Sunbelt Equity, Investment Grade Tax-Exempt Bond, Florida Tax-Exempt Bond, Tennessee Tax-Exempt Bond, Georgia Tax-Exempt Bond, Investment Grade Bond, Short-Term Bond, Short-Term U.S. Treasury Securities, Limited-Term Federal Mortgage Securities, U.S. Government Securities, Prime Quality Money Market, U.S. Government Securities Money Market and Tax-Exempt Money Market Funds of STI Classic Funds (the "Trust") as of May 31, 1996, and the related statements of operations, changes in net assets and financial highlights for the periods presented. These financial statements and financial highlights are the responsibility of the Trust's management. Our responsibility is to express an opinion on these financial statements and financial highlights based on our audits. We conducted our audits in accordance with generally accepted auditing standards. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements and financial highlights are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. Our procedures included confirmation of securities owned as of May 31, 1996, by correspondence with the custodian and brokers. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion. In our opinion, the financial statements and financial highlights referred to above present fairly, in all material respects, the financial position of the Value Income Stock, Mid-Cap Equity, Capital Growth, Balanced, International Equity Index, International Equity, Sunbelt Equity, Investment Grade Tax-Exempt Bond, Florida Tax-Exempt Bond, Tennessee Tax-Exempt Bond, Georgia Tax-Exempt Bond, Investment Grade Bond, Short-Term Bond, Short-Term U.S. Treasury Securities, Limited-Term Federal Mortgage Securities, U.S. Government Securities, Prime Quality Money Market, U.S. Government Securities Money Market and Tax-Exempt Money Market Funds of STI Classic Funds as of May 31, 1996, the results of their operations, changes in their net assets, and financial highlights for the periods presented, in conformity with generally accepted accounting principles. ARTHUR ANDERSEN LLP Philadelphia, PA July 12, 1996 37 STATEMENT OF NET ASSETS ================================================================================ STI CLASSIC FUNDS MAY 31, 1996 VALUE INCOME STOCK FUND - -------------------------------------------------------------------------------- MARKET SHARES VALUE (000) - -------------------------------------------------------------------------------- COMMON STOCKS (92.1%) BANKS (7.5%) AmSouth Bancorp 169,300 $ 6,433 Bank of Boston 162,500 8,105 Bankers Trust New York 283,000 21,260 Central Fidelity Banks 257,400 8,816 Crestar Financial 111,200 6,269 First American Bank 139,200 6,368 First American of Tennessee 160,900 7,059 First Virginia Banks 158,300 6,332 Fleet Financial Group 324,000 14,297 Great Western Financial 307,100 7,063 Magna Group 291,500 6,996 Summit Bancorp 170,554 6,204 ---------- Total Banks 105,202 ---------- CHEMICALS (6.6%) Akzo 155,400 9,421 Ethyl 1,789,300 18,564 Imperial Chemical Industries 397,200 21,101 Lawter International 520,600 5,987 Nalco Chemical 618,500 19,637 Rohm & Haas 195,100 13,218 Witco Chemical 164,800 5,253 ---------- Total Chemicals 93,181 ---------- CONCRETE & MINERAL PRODUCTS (1.5%) Tele Danmark A/S ADR 852,100 21,196 ---------- ELECTRICAL SERVICES (3.7%) Central & South West 502,000 13,868 Cinergy 563,008 16,679 General Public Utilities 203,700 6,824 Pacificorp 701,800 14,124 ---------- Total Electrical Services 51,495 ---------- FOOD, BEVERAGE, TOBACCO & HOUSEHOLD PRODUCTS (15.5%) B.A.T. Industries ADR 1,848,000 30,261 ConAgra 527,200 22,472 Dean Foods 460,200 11,217 Dial 251,100 7,219 - -------------------------------------------------------------------------------- MARKET SHARES VALUE (000) - -------------------------------------------------------------------------------- FOOD, BEVERAGE, TOBACCO & HOUSEHOLD PRODUCTS --(CONTINUED) Grand Metropolitan ADR 1,023,500 $ 27,507 H.J. Heinz 376,200 12,509 Lance 265,800 4,419 Masco 879,200 27,475 Maytag 604,200 12,990 McCormick 934,000 21,249 Snap-On Tools 279,800 13,465 Unilever 181,100 13,673 Unilever ADR 98,300 13,258 ---------- Total Food, Beverage, Tobacco & Household 217,714 ---------- ENERGY (7.5%) Atlantic Richfield 110,500 13,219 Elf Aquitaine ADR 377,200 13,815 Occidental Petroleum 476,300 12,324 Pennzoil 336,000 14,532 Phillips Petroleum 314,800 13,064 Questar 380,700 12,468 Repsol 409,600 13,926 USX-Marathon Group 564,500 12,348 ---------- Total Energy 105,696 ---------- HEALTH CARE (6.4%) Bausch & Lomb 473,700 20,369 Bristol-Myers Squibb 334,400 28,549 Pharmacia Upjohn ADR 545,700 22,306 Warner Lambert 341,400 19,118 ---------- Total Health Care 90,342 ---------- INSURANCE (7.1%) American Financial Group 465,200 13,956 American General 448,000 15,904 ITT Hartford Group 551,400 28,535 Lincoln National 448,400 21,075 Marsh & McLennan 217,600 20,373 ---------- Total Insurance 99,843 ---------- 38 ================================================================================ - -------------------------------------------------------------------------------- MARKET SHARES VALUE (000) - -------------------------------------------------------------------------------- MACHINERY (5.6%) Cooper Industries 544,700 $ 23,218 General Signal 715,400 27,364 Goulds Pumps 310,800 7,382 Tenneco 385,600 20,726 ---------- Total Machinery 78,690 ---------- MEDIA (4.2%) American Greetings, Cl A 724,800 19,660 Houghton Mifflin 293,500 13,905 McGraw-Hill 415,600 19,481 Reader's Digest, Cl A 152,600 6,466 ---------- Total Media 59,512 ---------- METALS & MINING (2.9%) Allegheny Ludlum 671,900 13,438 Reynolds Metals 380,200 20,531 USX-U.S. Steel Group 183,100 5,676 ---------- Total Metals & Mining 39,645 ---------- MISCELLANEOUS BUSINESS SERVICES (3.9%) Deluxe 377,500 13,684 Kelly Services, Cl A 398,800 11,864 Ogden 786,900 15,246 Xerox 91,600 14,416 ---------- Total Miscellaneous Business Services 55,210 ---------- PAPER & PAPER PRODUCTS (3.8%) International Paper 342,100 13,641 James River 815,900 20,296 Tambrands 410,300 18,925 ---------- Total Paper & Paper Products 52,862 ---------- RETAIL (2.7%) Giant Food 228,900 7,897 J.C. Penney 273,000 14,162 May Department Stores 331,600 15,710 ---------- Total Retail 37,769 ---------- - -------------------------------------------------------------------------------- SHARES/FACE MARKET AMOUNT (000) VALUE (000) - -------------------------------------------------------------------------------- TECHNOLOGY (6.2%) AMP 417,600 $ 17,591 GTE 452,300 19,336 ITT Industries 1,041,100 28,500 Philips Electronics ADR 602,500 21,163 ---------- Total Technology 86,590 ---------- TELEPHONES & TELECOMMUNICATION (5.6%) Alltel 618,800 19,492 Frontier 702,800 22,490 Southern New England Telecommunications 467,300 20,152 Sprint 336,700 14,268 ---------- Total Telephones & Telecommunication 76,402 ---------- TRANSPORTATION (1.4%) Ryder System 686,800 20,089 ---------- Total Common Stocks (Cost $1,170,974,717) 1,291,438 ---------- REPURCHASE AGREEMENTS (8.3%) Deutsche Bank 5.33%, dated 05/31/96, matures 06/03/96, repurchase price $57,449,239 (collateralized by various FHLB discount notes, total par value $15,275,000, 07/01/96-07/29/96; various FHLMC obligations, total par value $20,759,349, 5.494%-996.969%, 11/15/05- 11/15/23; and various FNMA obligations, total par value $43,981,328, 0.00%-8.40%, 02/25/08-03/25/24: total market value $58,576,767) 57,424 57,424 39 STATEMENT OF NET ASSETS ================================================================================ STI CLASSIC FUNDS MAY 31, 1996 VALUE INCOME STOCK FUND--CONCLUDED - -------------------------------------------------------------------------------- FACE AMOUNT MARKET (000) VALUE (000) - -------------------------------------------------------------------------------- REPURCHASE AGREEMENTS--CONTINUED Salomon Brothers 5.33%, dated 05/31/96, matures 06/03/96, repurchase price $38,606,723 (collateralized by various FHLMC obligations, total par value $15,729,565, 6.00%-9.50%, 07/01/99-03/01/26; and various FNMA obligations, total par value $57,245,349, 6.00%-9.50%, 10/01/01-05/01/26: total market value $39,635,606) $ 38,590 $ 38,590 Swiss Bank 5.33%, dated 05/31/96, matures 06/03/96, repurchase price $19,932,895 (collateralized by various FHLMC obligations, total par value $7,263,678, 7.50%, 11/01/25-12/01/25; and various U.S. Treasury obligations, total par value $11,207,000, 7.25%-13.25%, 02/15/05-05/15/20: total market value $20,367,151) 19,924 19,924 ---------- Total Repurchase Agreements (Cost $115,937,362) 115,938 ---------- Total Investments (100.4%) (Cost $1,286,912,079) 1,407,376 ---------- OTHER ASSETS AND LIABILITIES (-0.4%) Total Other Assets and Liabilities, Net (6,082) ---------- - -------------------------------------------------------------------------------- MARKET VALUE (000) - -------------------------------------------------------------------------------- NET ASSETS: Fund shares of the Trust Class (unlimited authorization --no par value) based on 94,636,309 outstanding shares of benefical interest $1,004,096 Fund shares of the Investor Class (unlimited authorization--no par value) based on 9,944,754 outstanding shares of beneficial interest 106,927 Fund shares of the Flex Class (unlimited authorization--no par value) based on 2,009,853 outstanding shares of beneficial interest 24,778 Undistributed net investment income 5,610 Accumulated net realized gain on investments 139,419 Unrealized appreciation on investments 120,464 ---------- Total Net Assets (100.0%) $1,401,294 ========== Net Asset Value, Offering Price and Redemption Price Per Share-- Trust Shares $ 13.15 ========== Net Asset Value, and Redemption Price Per Share--Investor Shares $ 13.13 ========== Maximum Public Offering Price Per Share--Investor Shares ($13.13 (DIVIDE) 96.25%) $ 13.64 ========== Net Asset Value, Offering Price and Redemption Price Per Share-- Flex Shares (1) $ 13.08 ========== (1)The Flex Shares have a contingent sales charge. For a description of a possible sales charge, see notes to the financial statements. THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS. FOR DESCRIPTIONS OF ABBREVIATIONS, PLEASE SEE PAGE 101. 40 ================================================================================ MID-CAP EQUITY FUND (FORMERLY THE AGGRESSIVE GROWTH FUND) - -------------------------------------------------------------------------------- MARKET SHARES VALUE (000) - -------------------------------------------------------------------------------- COMMON STOCKS (85.3%) AEROSPACE & DEFENSE (2.2%) General Dynamics 31,100 $ 1,917 Litton Industries* 52,000 2,412 Sundstrand 49,600 1,748 ---------- Total Aerospace & Defense 6,077 ---------- AUTOMOTIVE (1.6%) Dana 37,800 1,266 Federal Signal 23,500 590 Magna International, Cl A 29,800 1,438 Sonoco Products 39,500 1,081 ---------- Total Automotive 4,375 ---------- BANKS (7.8%) Bancorp Hawaii 29,500 1,073 Bank of Boston 34,100 1,701 Cal Fed Bancorp* 82,400 1,514 Crestar Financial 20,200 1,139 First Security 59,550 1,414 Merchantile Bancorp 28,400 1,335 Northern Trust 40,000 2,190 PNC Bank 37,965 1,153 Regions Financial 21,700 1,025 Republic New York 61,900 3,915 Signet Banking 39,700 1,027 SouthTrust 59,200 1,621 Summit Bancorp 67,900 2,470 ---------- Total Banks 21,577 ---------- BUILDING (1.5%) Clayton Homes 58,200 1,120 Foster Wheeler 66,200 2,946 ---------- Total Building 4,066 ---------- CHEMICALS (1.9%) Georgia Gulf 28,000 959 IMC Fertilizer Group 39,600 1,450 Olin 13,800 1,277 Witco Chemical 49,500 1,578 ---------- Total Chemicals 5,264 ---------- - -------------------------------------------------------------------------------- MARKET SHARES VALUE (000) - -------------------------------------------------------------------------------- ELECTRICAL SERVICES (2.7%) Aes* 42,700 $ 1,185 Illinova 124,900 3,279 Nipsco Industries 42,700 1,590 Wisconsin Energy 48,500 1,358 ---------- Total Electrical Services 7,412 ---------- ENERGY (4.1%) Anadarko Petroleum 40,400 2,171 Apache 44,900 1,285 Kerr-McGee 36,200 2,127 Mapco 17,000 982 Lyondell Petrochemical 26,600 688 Valero Energy 47,100 1,295 Noble Affiliates 50,800 1,721 Questar 34,900 1,143 ---------- Total Energy 11,412 ---------- ENVIRONMENTAL SERVICES (0.8%) Laidlaw, Cl B 47,000 476 Molten Metal Technology* 57,300 1,748 ---------- Total Environmental Services 2,224 ---------- FINANCIAL SERVICES (2.6%) Bear Stearns 59,975 1,447 Charles Schwab 75,100 1,821 Franklin Resources 49,100 2,878 Green Tree Financial 33,000 1,081 ---------- Total Financial Services 7,227 ---------- FOOD, BEVERAGE,TOBACCO & HOUSEHOLD PRODUCTS (5.0%) Dial 67,900 1,952 First Brands 81,300 2,012 Hubbell, Cl B 30,520 2,132 IBP 57,500 1,574 McCormick 65,700 1,495 Nine West Group* 26,300 1,279 Solectron* 43,800 1,900 Tyson Foods 64,800 1,587 ---------- Total Food, Beverage,Tobacco & Household 13,931 ---------- 41 STATEMENT OF NET ASSETS ================================================================================ STI CLASSIC FUNDS MAY 31, 1996 MID-CAP EQUITY FUND (FORMERLY THE AGGRESSIVE GROWTH FUND) -- CONTINUED - -------------------------------------------------------------------------------- MARKET SHARES VALUE (000) - -------------------------------------------------------------------------------- HEALTH CARE (9.2%) Apria Healthcare Group* 26,800 $ 784 Biogen* 42,600 2,577 Cardinal Health 28,100 1,795 Chiron* 17,700 1,859 Elan ADR* 26,100 1,638 Healthcare & Retirement* 26,900 972 HEALTHSOUTH Rehabilitation* 82,400 2,884 Ivax 64,100 1,763 Mylan Laboratories 55,700 1,058 Nellcor* 23,300 1,270 R.P. Scherer* 22,500 945 Stryker 37,000 1,915 Sunglass Hut International * 45,800 1,259 Tenet Healthcare* 57,300 1,232 Teva Pharmaceuticals ADR 41,900 1,875 Varian Associates 31,200 1,778 ---------- Total Health Care 25,604 ---------- INSURANCE (5.5%) AFLAC 55,800 1,681 Aon 48,900 2,463 Equifax 62,500 1,547 Healthcare Compare* 33,700 1,630 Pacificare Health Systems, Cl B* 27,300 2,259 Progressive of Ohio 43,900 2,030 Sunamerica 44,600 2,498 Transatlantic Holdings 17,900 1,150 ---------- Total Insurance 15,258 ---------- LEISURE (2.8%) Circus Circus Enterprises* 59,600 2,481 HFS* 36,200 2,258 Mirage Resorts* 37,100 2,110 Wendy's International 48,000 864 ---------- Total Leisure 7,713 ---------- - -------------------------------------------------------------------------------- MARKET SHARES VALUE (000) - -------------------------------------------------------------------------------- MACHINERY (4.0%) Agco 52,300 $ 1,576 American Standard* 75,300 2,231 General Signal 40,600 1,553 Goulds Pumps 28,100 667 Smith International* 12,600 397 Trinity Industries 30,900 1,070 Tyco International 37,800 1,493 York International 38,300 2,025 ---------- Total Machinery 11,012 ---------- MEDIA (1.6%) Chris-Craft Industries* 18,722 765 Interpublic Group 30,400 1,410 Omnicom Group 32,200 1,405 TCA Cable Television 27,300 771 ---------- Total Media 4,351 ---------- METALS & MINING (1.3%) Alumax* 39,600 1,317 Potash of Saskatchewan 33,300 2,214 ---------- Total Metals & Mining 3,531 ---------- PAPER & PAPER PRODUCTS (1.1%) Bowater 21,800 858 Tambrands 20,200 932 Westvaco 40,800 1,306 ---------- Total Paper & Paper Products 3,096 ---------- PRINTING & PUBLISHING (1.7%) American Greetings, Cl A 100,800 2,734 Belo, Cl A 36,000 1,377 Houghton Mifflin 11,400 540 ---------- Total Printing & Publishing 4,651 ---------- RAILROADS (0.8%) Illinois Central 72,750 2,173 ---------- 42 ================================================================================ - -------------------------------------------------------------------------------- MARKET SHARES VALUE (000) - -------------------------------------------------------------------------------- RETAIL (7.9%) Cintas 13,200 $ 706 Dollar General 26,300 730 Federated Department Stores* 85,400 2,957 Fisher Scientific International 43,500 1,778 Hannaford Brothers 72,100 2,280 Kohls* 42,100 1,394 Lone Star Steakhouse & Saloon* 33,700 1,361 Office Depot* 73,400 1,881 Outback Steakhouse* 100,100 3,791 Price/Costco* 107,000 2,140 Staples* 141,800 2,836 ---------- Total Retail 21,854 ---------- TECHNOLOGY (15.3%) ADC Telecommunications* 24,200 1,113 Adobe Systems 31,500 1,169 America Online* 48,800 2,757 Analog Devices* 79,525 2,197 Atmel* 58,200 2,066 Avnet 29,900 1,540 Borland International* 48,800 656 Cabletron Systems* 10,100 735 Cadence Design Systems* 19,950 1,132 CUC International* 35,400 1,310 Dell Computer* 25,800 1,429 Diebold 45,600 1,739 Electronic Arts* 27,500 870 EMC* 68,500 1,516 Fiserv* 26,000 816 Informix* 77,300 1,758 Linear Technology 46,800 1,615 Mentor Graphics* 51,000 912 Molex 42,337 1,349 Network General * 81,400 1,933 Octel Communications * 15,000 368 Olsten 42,300 1,301 - -------------------------------------------------------------------------------- SHARES/FACE MARKET AMOUNT (000) VALUE (000) - -------------------------------------------------------------------------------- TECHNOLOGY--CONTINUED Parametric Technology* 52,400 $ 2,397 Reynolds & Reynolds 22,200 1,107 Seagate Technology* 64,000 3,760 Stratacom* 28,600 1,555 Symantec* 43,600 687 U.S. Robotics* 28,000 2,569 ---------- Total Technology 42,356 ---------- TELEPHONES & TELECOMMUNICATION (3.4%) 360 Communications* 68,300 1,579 Century Telephone Enterprises 34,100 1,108 Frontier 84,800 2,714 Southern New England Telecom 34,400 1,484 Telephone & Data Systems 21,300 929 Worldcom* 34,100 1,667 ---------- Total Telephones & Telecommunication 9,481 ---------- TRANSPORTATION (0.5%) Atlantic Southeast Airlines 51,500 1,365 ---------- Total Common Stocks (Cost $215,086,805) 236,010 ---------- CONVERTIBLE BOND (0.7%) Broadband Tech, Convertible to 24.108 shares (B) 5.000%, 05/15/01 $2,000 2,000 ---------- Total Convertible Bond (Cost $2,000,000) 2,000 ---------- 43 STATEMENT OF NET ASSETS ================================================================================ STI CLASSIC FUNDS MAY 31, 1996 MID-CAP EQUITY FUND (FORMERLY THE AGGRESSIVE GROWTH FUND) -- CONCLUDED - -------------------------------------------------------------------------------- FACE AMOUNT MARKET (000) VALUE (000) - -------------------------------------------------------------------------------- REPURCHASE AGREEMENT (15.2%) Deutsche Bank 5.33%, dated 05/31/96, matures 06/03/96, repurchase price $42,138,594 (collateralized by FHLB discount note, par value $15,895,000, 0.00%, 07/01/96, various FHLMC obligations, total par value $11,493,334, 0.00%-8.2055%, 10/15/08-07/15/19, and various FNMA obligations, total par value $29,123,728, 0.00%-7.5075%, 12/25/06-10/25/23: total market value $42,962,287) 42,120 $ 42,120 ---------- Total Repurchase Agreement (Cost $42,119,885) 42,120 ---------- Total Investments (101.2%) (Cost $259,206,690) 280,130 ---------- OTHER ASSETS AND LIABILITIES (-1.2%) Total Other Assets and Liabilities, Net (3,225) ---------- NET ASSETS: Fund shares of the Trust Class (unlimited authorization --no par value) based on 19,896,278 outstanding shares of benefical interest 216,555 Fund shares of the Investor Class (unlimited authorization--no par value) based on 1,410,060 outstanding shares of beneficial interest 15,667 Fund shares of the Flex Class (unlimited authorization--no par value) based on 396,479 outstanding shares of beneficial interest 4,840 Undistributed net investment income 249 Accumulated net realized gain on investments 18,671 Unrealized appreciation on investments 20,923 ---------- - -------------------------------------------------------------------------------- MARKET VALUE (000) - -------------------------------------------------------------------------------- Total Net Assets (100.0%) $276,905 ======== Net Asset Value, Offering Price and Redemption Price Per Share--Trust Shares $ 12.76 ======== Net Asset Value and Redemption Price Per Share--Investor Shares $ 12.74 ======== Maximum Public Offering Price Per Share-- Investor Shares ($12.74 (DIVIDE) 96.25%) $ 13.24 ======== Net Asset Value, Offering Price and Redemption Price Per Share--Flex Shares (1) $ 12.69 ======== (1)The Flex Shares have a contingent sales charge. For a description of a possible sales charge, see notes to the financial statements. THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS. FOR DESCRIPTIONS OF ABBREVIATIONS, PLEASE SEE PAGE 101. 44 ================================================================================ CAPITAL GROWTH FUND - -------------------------------------------------------------------------------- MARKET SHARES VALUE (000) - -------------------------------------------------------------------------------- COMMON STOCKS (93.0%) AEROSPACE & DEFENSE (3.9%) Allied Signal 317,500 $ 17,383 General Dynamics 54,000 3,328 Lockheed Martin 68,000 5,704 United Technologies 182,600 19,972 ---------- Total Aerospace & Defense 46,387 ---------- AUTOMOTIVE (3.5%) General Motors 222,900 12,287 General Motors, Cl E 266,700 15,035 Goodyear Tire & Rubber 137,600 6,949 Lear* 202,200 7,810 ---------- Total Automotive 42,081 ---------- BANKS (3.5%) Bank of Boston 170,700 8,514 BayBanks 1,900 205 Chase Manhattan Bank 377,900 26,453 CoreStates Financial 41,300 1,626 Cullen/Frost Bankers 65,100 3,353 Signet Banking 59,700 1,545 Wells Fargo 565 136 ---------- Total Banks 41,832 ---------- BUILDING (1.4%) American Standard* 345,300 10,230 Foster Wheeler 136,000 6,052 ---------- Total Building 16,282 ---------- CHEMICALS (2.9%) Air Products & Chemicals 103,300 6,146 Dow Chemical 36,400 3,044 E.I. du Pont de Nemours 118,400 9,442 Hercules 233,200 13,234 Morton International 74,200 2,820 ---------- Total Chemicals 34,686 ---------- - -------------------------------------------------------------------------------- MARKET SHARES VALUE (000) - -------------------------------------------------------------------------------- ELECTRICAL EQUIPMENT (4.2%) Emerson Electric 75,000 $ 6,422 General Electric 348,500 28,838 General Signal 393,000 15,032 ---------- Total Electrical Equipment 50,292 ---------- ENERGY (5.5%) Amoco 231,000 16,748 Atlantic Richfield 50,100 5,993 Dresser Industries 148,400 4,341 Enron 130,200 5,208 Halliburton 25,100 1,396 Kerr-McGee 96,500 5,669 Mobil 112,400 12,687 Schlumberger 60,600 5,053 Texaco 35,000 2,931 Union Texas Petroleum 261,700 4,874 ---------- Total Energy 64,900 ---------- ENVIRONMENTAL SERVICES (0.7%) Molten Metal Technology* 196,100 5,981 WMX Technologies 81,100 2,859 ---------- Total Environmental Services 8,840 ---------- FINANCIAL SERVICES (0.8%) FHLMC 118,500 9,791 ---------- FOOD, BEVERAGE, TOBACCO & HOUSEHOLD PRODUCTS (10.5%) Bush Boake Allen* 144,400 3,574 Coca Cola 162,600 7,480 Colgate-Palmolive 59,700 4,701 CPC International 207,900 14,371 Dial 50,000 1,438 Gillette 66,400 3,926 JP Foodservice* 114,700 2,695 Kellogg 36,400 2,648 Newell 230,400 6,912 PepsiCo 550,200 18,294 Philip Morris 218,950 21,758 45 STATEMENT OF NET ASSETS ================================================================================ STI CLASSIC FUNDS MAY 31, 1996 CAPITAL GROWTH FUND--CONTINUED - -------------------------------------------------------------------------------- MARKET SHARES VALUE (000) - -------------------------------------------------------------------------------- FOOD, BEVERAGE, TOBACCO & HOUSEHOLD PRODUCTS--CONTINUED Procter & Gamble 232,900 $ 20,466 Ralston-Ralston Purina Group 101,500 6,217 Sara Lee 114,800 3,831 Sysco 163,700 5,586 ---------- Total Food, Beverage, Tobacco & Household 123,897 ---------- HEALTH CARE (12.1%) Abbott Laboratories 111,800 4,821 Allergan 3,200 123 American Home Products 57,800 3,092 Astra, Cl A ADR 100,100 4,555 Boston Scientific* 84,200 3,610 Bristol-Myers Squibb 98,300 8,392 Columbia/HCA Healthcare 297,564 16,031 HEALTHSOUTH Rehabilitation* 117,700 4,120 Johnson & Johnson 283,194 27,576 Medtronic 47,100 2,649 Merck 339,482 21,939 Pfizer 100,300 7,096 Pharmacia Upjohn ADR 50,800 2,076 Schering Plough 42,800 2,509 SmithKline Beecham 285,600 14,566 Tenet Healthcare* 349,100 7,506 Varian Associates 78,300 4,463 Vencor* 243,370 7,697 ---------- Total Health Care 142,821 ---------- INSURANCE (6.2%) American International Group 163,450 15,405 Chubb 120,400 5,614 General Re 55,000 8,030 ITT Hartford Group 127,400 6,593 MGIC Investment 91,000 5,346 PMI Group 145,400 6,289 Sphere Drake Holdings 306,000 2,984 Travelers 308,697 12,811 Washington National 374,600 9,927 ---------- Total Insurance 72,999 ---------- - -------------------------------------------------------------------------------- MARKET SHARES VALUE (000) - -------------------------------------------------------------------------------- LEISURE (6.6%) ITT* 177,700 $ 10,929 Carnival 716,800 21,325 Marriott 177,900 8,450 Mattel 207,300 5,649 McDonald's 397,100 19,110 Walt Disney 201,066 12,215 Wendy's International 55,000 990 ---------- Total Leisure 78,668 ---------- MACHINERY (0.8%) Deere 215,400 8,966 ---------- MEDIA (3.2%) Hollinger International 235,300 2,912 McGraw-Hill 34,000 1,594 Tele-Communications, Cl A* 858,200 16,199 Viacom, Cl B* 377,721 16,006 World Color Press* 41,800 982 ---------- Total Media 37,693 ---------- METALS & MINING (0.8%) Alumax* 24,700 821 Aluminum Company of America 137,800 8,492 Worthington Industries 22,100 445 ---------- Total Metals & Mining 9,758 ---------- MISCELLANEOUS (2.5%) Eastman Kodak 73,200 5,444 Tyco International 598,700 23,649 ---------- Total Miscellaneous 29,093 ---------- PAPER & PAPER PRODUCTS (0.3%) Kimberly Clark 51,100 3,724 ---------- RETAIL (6.3%) Federated Department Stores* 342,200 11,849 General Nutrition* 128,900 1,998 Home Depot 534,032 27,302 Intimate Brands 198,100 4,284 Melville 40,200 1,633 Office Depot* 279,400 7,160 46 ================================================================================ - -------------------------------------------------------------------------------- MARKET SHARES VALUE (000) - -------------------------------------------------------------------------------- RETAIL--CONTINUED Price/Costco* 84,100 $ 1,682 Safeway* 58,300 1,968 Staples* 149,100 2,982 Wal-Mart Stores 513,700 13,292 ---------- Total Retail 74,150 ---------- TECHNOLOGY (11.6%) AMP 8,600 362 Arrow Electronics* 150,800 7,427 Automatic Data Processing 73,000 2,801 Bay Networks* 140,800 4,083 Cisco Systems* 268,600 14,706 CompuServe* 7,500 186 Ericsson Telephone ADR 254,700 5,874 First Data 41,900 3,342 Hewlett Packard 92,000 9,821 IBM 125,600 13,408 Informix* 61,700 1,404 Intel 65,500 4,945 Microsoft* 147,900 17,563 Motorola 206,100 13,757 Oracle* 300,950 9,969 Scientific-Atlanta 726,800 13,718 Xerox 92,100 14,494 ---------- Total Technology 137,860 ---------- TELEPHONES & TELECOMMUNICATION (3.5%) Airtouch Communications* 94,100 2,999 Alltel 44,800 1,411 AT&T 468,358 29,214 BellSouth 61,900 2,515 Cellular Communications, Cl A* 70,000 3,763 Pacific Telesis Group 48,100 1,605 ---------- Total Telephones & Telecommunication 41,507 ---------- - -------------------------------------------------------------------------------- MARKET SHARES VALUE (000) - -------------------------------------------------------------------------------- TRANSPORTATION (2.1%) Burlington Northern Santa Fe 100,200 $ 8,492 Conrail 21,800 1,531 Southwest Airlines 126,800 3,471 Union Pacific 162,700 11,409 ---------- Total Transportation 24,903 ---------- Total Common Stocks (Cost $966,088,933) 1,101,130 ---------- PREFERRED STOCKS (2.5%) AIR TRANSPORTATION (0.6%) Continental Airline Financial, 8.50% (A) 110,000 7,205 ---------- BROADCASTING, NEWSPAPERS & ADVERTISING (0.3%) SFX Broadcasting, Ser D (B) 70,000 3,614 ---------- CONTAINERS & PACKAGING (0.2%) Crown Cork & Seal 43,000 1,962 ---------- PAPER & PAPER PRODUCTS (0.4%) International Paper CV, 5.25% 100,000 4,775 ---------- PETROLEUM & FUEL PRODUCTS (0.4%) Occidental Petroleum (B) 80,000 4,890 ---------- TELEPHONES & TELECOMMUNICATION (0.2%) TCI Communications CV, $2.125 50,000 2,300 ---------- WHOLESALE (0.4%) Westinghouse Electric, Convertible to 0.885 Shares (B) 300,000 5,138 ---------- Total Preferred Stocks (Cost $27,955,615) 29,884 ---------- 47 STATEMENT OF NET ASSETS ================================================================================ STI CLASSIC FUNDS MAY 31, 1996 CAPITAL GROWTH FUND--CONCLUDED - -------------------------------------------------------------------------------- FACE AMOUNT MARKET (000) VALUE (000) - -------------------------------------------------------------------------------- CONVERTIBLE BONDS (2.2%) Baker Hughes Zero Coupon, 05/05/08 $ 6,500 $ 4,436 Continental Airlines Convertible to 16.5590 Shares 6.750%, 04/15/06 3,100 3,418 Mariott, LYON (A) (B) Zero Coupon, 03/25/11 5,000 2,638 Molten Metal Technology, Convertible to 25.8065 Shares (B) 5.500%, 05/01/06 2,000 1,985 Noble Affiliates 4.250%, 11/01/03 2,500 2,603 Tele Communications International, Convertible to 36.63 Shares 4.500%, 02/15/06 4,000 3,610 Tenet Healthcare 6.000%, 12/01/05 4,500 4,770 WMX Technologies 2.000%, 01/24/05 2,000 1,962 ---------- Total Convertible Bonds (Cost $25,430,492) 25,422 ---------- REPURCHASE AGREEMENTS (1.6%) Salomon Brothers 5.33%, dated 05/31/96, matures 06/03/96, repurchase price $14,986,982 (collateralized by FHLMC obligation, par value $11,200,000, 7.7291%, 06/15/23; and various FNMA obligations, total par value $123,624,662, 5.90%-9.50%, 07/01/22-02/25/23: total market value $16,138,834) 14,980 14,980 Swiss Bank 5.33%, dated 05/31/96, matures 06/03/96, repurchase price $3,513,875 (collateralized by U.S. Treasury Bond, par value $2,778,000, 9.875%, 11/15/15: market value $3,604,137) 3,512 3,512 ---------- - -------------------------------------------------------------------------------- MARKET VALUE (000) - -------------------------------------------------------------------------------- Total Repurchase Agreements (Cost $18,492,644) $ 18,492 ---------- Total Investments (99.3%) (Cost $1,037,967,684) 1,174,928 ---------- OTHER ASSETS AND LIABILITIES (0.7%) Total Other Assets and Liabilities, Net 8,617 ---------- NET ASSETS: Fund shares of the Trust Class (unlimited authorization --no par value) based on 65,851,300 outstanding shares of benefical interest 740,420 Fund shares of the Investor Class (unlimited authorization--no par value) based on 12,833,227 outstanding shares of beneficial interest 146,753 Fund shares of the Flex Class (unlimited authorization--no par value) based on 739,091 outstanding shares of beneficial interest 10,094 Undistributed net investment income 3,296 Accumulated net realized gain on investments 146,022 Unrealized appreciation on investments 136,960 ---------- Total Net Assets (100.0%) $1,183,545 ========== Net Asset Value, Offering Price and Redemption Price Per Share-- Trust Shares $ 14.90 ========== Net Asset Value and Redemption Price Per Share--Investor Shares $ 14.89 ========== Maximum Public Offering Price Per Share-- Investor Shares ($14.89 (DIVIDE) 96.25%) $ 15.47 ========== Net Asset Value, Offering Price and Redemption Price Per Share-- Flex Shares (1) $ 14.84 ========== (1)The Flex Shares have a contingent sales charge. For a description of a possible sales charge, see notes to the financial statements. THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS. FOR DESCRIPTIONS OF ABBREVIATIONS, PLEASE SEE PAGE 101. 48 ================================================================================ BALANCED FUND - -------------------------------------------------------------------------------- MARKET SHARES VALUE (000) - -------------------------------------------------------------------------------- COMMON STOCKS (55.7%) AEROSPACE & DEFENSE (2.3%) Allied Signal 18,800 $ 1,029 General Dynamics 3,200 197 Lockheed Martin 4,000 336 United Technologies 10,900 1,192 -------- Total Aerospace & Defense 2,754 -------- AUTOMOTIVE (2.1%) General Motors 13,300 733 General Motors, Cl E 15,200 857 Goodyear Tire & Rubber 8,200 414 Lear* 11,800 456 -------- Total Automotive 2,460 -------- BANKS (2.4%) Bank of Boston 6,400 319 BayBanks 3,300 356 Chase Manhattan Bank 22,400 1,568 CoreStates Financial 2,500 98 Cullen/Frost Bankers 3,900 201 Signet Banking 3,900 101 Wells Fargo 900 217 -------- Total Banks 2,860 -------- BUILDING (0.9%) American Standard* 18,700 554 Foster Wheeler 12,000 534 -------- Total Building 1,088 -------- CHEMICALS (1.7%) Air Products & Chemicals 5,800 345 Dow Chemical 1,400 117 E.I. du Pont de Nemours 6,700 534 Hercules 13,400 760 Morton International 6,000 228 -------- Total Chemicals 1,984 -------- - -------------------------------------------------------------------------------- MARKET SHARES VALUE (000) - -------------------------------------------------------------------------------- ELECTRICAL EQUIPMENT (2.5%) Emerson Electric 4,700 $ 402 General Electric 20,500 1,696 General Signal 23,300 891 -------- Total Electrical Equipment 2,989 -------- ENERGY (3.0%) Amoco 13,700 993 Atlantic Richfield 2,800 335 Dresser Industries 8,800 257 Enron 7,700 308 Halliburton 1,500 84 Kerr-McGee 5,700 335 Mobil 6,700 756 Schlumberger 3,600 300 Union Texas Petroleum 9,400 175 -------- Total Energy 3,543 -------- ENVIRONMENTAL SERVICES (0.6%) Molten Metal Technology* 13,600 415 WMX Technologies 8,100 286 -------- Total Environmental Services 701 -------- FINANCIAL SERVICES (0.5%) FHLMC 6,900 570 -------- FOOD, BEVERAGE, TOBACCO & HOUSEHOLD PRODUCTS (6.1%) Bush Boake Allen* 5,300 131 Coca Cola 9,500 437 Colgate-Palmolive 3,500 276 CPC International 13,500 933 Gillette 4,200 248 JP Foodservice * 8,900 209 Kellogg 2,000 146 Newell 13,700 411 PepsiCo 33,300 1,107 Philip Morris 12,700 1,262 49 STATEMENT OF NET ASSETS ================================================================================ STI CLASSIC FUNDS MAY 31, 1996 BALANCED FUND--CONTINUED - -------------------------------------------------------------------------------- MARKET SHARES VALUE (000) - -------------------------------------------------------------------------------- FOOD, BEVERAGE, TOBACCO & HOUSEHOLD PRODUCTS--CONTINUED Procter & Gamble 13,900 $ 1,221 Ralston-Ralston Purina Group 6,000 368 Sara Lee 5,700 190 Sysco 9,800 334 -------- Total Food, Beverage, Tobacco & Household 7,273 -------- HEALTH CARE (7.4%) Abbott Laboratories 6,600 285 American Home Products 2,600 139 Astra, Cl A ADR 3,600 164 Boston Scientific* 8,000 343 Bristol-Myers Squibb 5,600 478 Columbia/HCA Healthcare 17,040 918 Healthcare & Retirement* 6,000 217 HEALTHSOUTH Rehabilitation* 12,284 430 Johnson & Johnson 16,800 1,636 Medtronic 3,200 180 Merck 20,100 1,299 Pfizer 6,000 425 Pharmacia Upjohn ADR 3,000 123 Schering Plough 2,600 152 SmithKline Beecham 16,900 862 Tenet Healthcare* 22,000 473 Varian Associates 6,100 348 Vencor* 12,400 392 -------- Total Health Care 8,864 -------- INSURANCE (3.8%) American International Group 9,700 914 Chubb 11,800 550 General Re 3,200 467 ITT Hartford Group 7,600 393 MGIC Investment 5,900 347 PMI Group 9,700 420 Sphere Drake Holdings 21,000 205 Travelers 18,300 759 Washington National 19,500 517 -------- Total Insurance 4,572 -------- - -------------------------------------------------------------------------------- MARKET SHARES VALUE (000) - -------------------------------------------------------------------------------- LEISURE (4.8%) Carnival 39,000 $ 1,160 ITT* 10,500 646 Marriott 9,500 451 Mattel 11,750 320 McDonald's 29,700 1,429 Viacom, Cl B* 21,544 913 Walt Disney 11,195 680 Wendy's International 10,000 180 -------- Total Leisure 5,779 -------- MACHINERY (0.4%) Deere 12,400 516 -------- MEDIA (0.5%) Tele-Communications, Cl A* 34,000 642 -------- METALS (0.6%) Alumax* 1,400 47 Aluminum Company of America 7,900 487 Worthington Industries 12,000 242 -------- Total Metals 776 -------- MISCELLANEOUS BUSINESS SERVICES (1.5%) Eastman Kodak 5,400 402 Tyco International 35,600 1,406 -------- Total Miscellaneous Business Services 1,808 -------- PAPER & PAPER PRODUCTS (0.2%) Kimberly Clark 3,000 219 -------- RETAIL (3.7%) Federated Department Stores* 19,400 672 General Nutrition* 7,600 118 Home Depot 31,700 1,621 Intimate Brands 10,500 227 Melville 2,400 98 Office Depot* 11,100 284 Price/Costco* 12,700 254 Safeway 7,000 236 Staples* 4,700 94 Wal-Mart Stores 30,500 789 -------- Total Retail 4,393 -------- 50 ================================================================================ - -------------------------------------------------------------------------------- MARKET SHARES VALUE (000) - -------------------------------------------------------------------------------- TECHNOLOGY (7.1%) AMP 3,600 $ 152 Arrow Electronics* 10,500 517 Automatic Data Processing 4,270 164 Bay Networks* 8,300 241 Cisco Systems* 16,100 881 Ericsson Telephone ADR 15,100 348 First Data 4,400 351 Hewlett Packard 5,500 587 IBM 8,800 939 Intel 3,400 257 Microsoft* 8,800 1,045 Motorola 12,200 814 Oracle* 17,900 593 Scientific-Atlanta 38,600 729 Xerox 5,400 850 -------- Total Technology 8,468 -------- TELEPHONES & TELECOMMUNICATION (2.0%) Airtouch Communications* 8,600 274 Alltel 4,100 129 AT&T 27,800 1,734 BellSouth 3,500 142 Pacific Telesis Group 2,900 97 -------- Total Telephones & Telecommunication 2,376 -------- TRANSPORTATION (1.3%) Burlington Northern Santa Fe 6,300 534 Conrail 1,400 98 Southwest Airlines 8,300 227 Union Pacific 9,700 680 -------- Total Transportation 1,539 -------- UTILITIES (0.3%) Texas Utilities 8,200 335 -------- Total Common Stocks (Cost $58,836,551) 66,509 -------- - -------------------------------------------------------------------------------- SHARES/FACE MARKET AMOUNT (000) VALUE (000) - -------------------------------------------------------------------------------- PREFERRED STOCKS (1.0%) AIR TRANSPORTATION (0.3%) Continental Airline Financial, 8.50% 5,000 $ 328 -------- CONTAINERS & PACKAGING (0.4%) Crown Cork & Seal 11,800 538 -------- PETROLEUM & FUEL PRODUCTS (0.3%) Occidental Petroleum (B) 6,000 367 -------- Total Preferred Stocks (Cost $1,172,700) 1,233 -------- CORPORATE OBLIGATIONS (12.0%) Aristar Financial 7.500%, 07/01/99 $1,000 1,014 AT&T Capital 5.500%, 02/09/98 1,000 985 Capital One Bank 6.660%, 08/17/98 500 497 Capital One Bank, MTN 6.490%, 08/15/97 1,000 998 Ford Motor Credit, MTN 6.110%, 12/28/01 1,000 953 General Electric Capital 6.660%, 05/01/18 1,000 988 International Lease Finance 8.125%, 01/15/98 1,000 1,023 Merrill Lynch 7.375%, 05/15/06 1,500 1,481 Paine Webber 6.250%, 06/15/98 3,500 3,442 Salomon 6.700%, 12/01/98 1,000 994 Sears, MTN 7.360%, 08/15/97 1,000 1,013 Societe Generale - NY 7.400%, 06/01/06 1,000 990 -------- Total Corporate Obligations (Cost $14,561,130) 14,378 -------- 51 STATEMENT OF NET ASSETS ================================================================================ STI CLASSIC FUNDS MAY 31, 1996 BALANCED FUND--CONCLUDED - -------------------------------------------------------------------------------- FACE AMOUNT MARKET (000) VALUE (000) - -------------------------------------------------------------------------------- CONVERTIBLE BONDS (1.0%) Pennzoil, 4.75% 4.750%, 10/01/03 $ 800 $ 870 Time Warner Finance, $1.24 Zero Coupon, 06/22/13 900 372 -------- Total Convertible Bonds (Cost $1,216,874) 1,242 -------- U.S. AGENCY MORTGAGE-BACKED OBLIGATIONS (5.5%) FHLMC 8.000%, 06/01/02 730 749 FNMA 8.500%, 04/01/17 904 924 GNMA 6.500%, 12/15/23 2,458 2,275 9.000%, 11/15/17 2,500 2,653 -------- Total U.S. Agency Mortgage-Backed Obligations (Cost $6,639,387) 6,601 -------- U.S. TREASURY OBLIGATIONS (21.7%) U.S. Treasury Bonds 7.500%, 11/15/16 4,000 4,142 8.125%, 08/15/19 3,750 4,144 U.S. Treasury Notes 5.625%, 01/31/98 250 248 7.500%, 10/31/99 1,500 1,542 6.250%, 08/31/00 4,500 4,436 7.500%, 11/15/01 750 777 7.500%, 05/15/02 3,500 3,637 5.750%, 08/15/03 7,500 7,060 -------- Total U.S. Treasury Obligations (Cost $26,837,668) 25,986 -------- - -------------------------------------------------------------------------------- FACE AMOUNT MARKET (000) VALUE (000) - -------------------------------------------------------------------------------- REPURCHASE AGREEMENT (4.0%) Merrill Lynch 5.31%, dated 05/31/96, matures 06/03/96, repurchase price $4,754,406 (collateralized by FHLMC ARM, par value $8,062,000, 7.86%, 04/01/24: total market value $4,929,158) $ 4,752 $ 4,752 -------- Total Repurchase Agreement (Cost $4,752,303) 4,752 -------- Total Investments (100.9%) (Cost $114,016,613) 120,701 -------- OTHER ASSETS AND LIABILITIES (-0.9%) Total Other Assets and Liabilities, Net (1,036) -------- NET ASSETS: Fund shares of the Trust Class (unlimited authorization --no par value) based on 9,665,824 outstanding shares of benefical interest 97,978 Fund shares of the Investor Class (unlimited authorization--no par value) based on 422,202 outstanding shares of beneficial interest 4,229 Fund shares of the Flex Class (unlimited authorization--no par value) based on 271,519 outstanding shares of beneficial interest 2,980 Undistributed net investment income 527 Accumulated net realized gain on investments 7,267 Unrealized appreciation on investments 6,684 -------- Total Net Assets (100.0%) $119,665 ======== 52 ================================================================================ - -------------------------------------------------------------------------------- - -------------------------------------------------------------------------------- Net Asset Value, Offering Price and Redemption Price Per Share-- Trust Shares $ 11.55 ======== Net Asset Value and Redemption Price Per Share--Investor Shares $ 11.60 ======== Maximum Public Offering Price Per Share--Investor Shares ($11.60 (DIVIDE) 96.25%) $ 12.05 ======== Net Asset Value, Offering Price and Redemption Price Per Share-- Flex Shares (1) $ 11.53 ======== (1)The Flex Shares have a contingent sales charge. For a description of a possible sales charge, see notes to the financial statements. THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS. FOR DESCRIPTIONS OF ABBREVIATIONS, PLEASE SEE PAGE 101. 53 STATEMENT OF NET ASSETS ================================================================================ STI CLASSIC FUNDS MAY 31, 1996 INTERNATIONAL EQUITY INDEX FUND - -------------------------------------------------------------------------------- MARKET SHARES VALUE (000) - -------------------------------------------------------------------------------- FOREIGN COMMON STOCKS (97.6%) AUSTRALIA (2.4%) Amcor 13,361 $ 91 Broken Hill Proprietary 39,869 601 Coles Myer 40,644 149 CRA 9,418 153 CSR 27,994 102 Lend Lease 9,731 152 Mount Isa Mines Holdings 42,910 61 National Australia Bank 38,256 359 Newscorp 33,881 190 Pacific Dunlop 68,655 148 Western Mining 25,702 195 Westpac Banking 36,880 172 -------- Total Australia 2,373 -------- AUSTRIA (1.7%) Bank of Austria 5,549 517 Creditanstalt Bankverein 4,114 290 Ea - Generali 720 236 Oest El Wirtsch , Cl A 3,274 250 OMV 2,270 235 Wienerberger Baustoff 570 118 -------- Total Austria 1,646 -------- BELGIUM (1.8%) Bekaert 150 128 Delhaize Freres 2,100 107 Electrabel 1,000 215 Fortis 1,400 189 Generale Banque 470 163 Groupe Bruxelles Lambert 700 93 Kredietbank 540 157 Petrofina 600 179 Royale Belge 500 101 Solvay, Cl A 275 165 Tractabel 350 155 Union Minere* 680 51 -------- Total Belgium 1,703 -------- DENMARK (1.0%) Carlsberg, Cl B 1,540 86 D/S 1912, Cl B 6 132 - -------------------------------------------------------------------------------- MARKET SHARES VALUE (000) - -------------------------------------------------------------------------------- D/S Svendborg, Cl B 5 $ 163 Danisco 3,040 147 Novo Nordisk, Cl B 1,490 205 Sophus Berendsen, Cl B 410 55 Tele Danmark, Cl B 3,958 195 -------- Total Denmark 983 -------- FINLAND (0.5%) Merita* 16,000 34 Nokia, Cl K 3,700 161 Outokumpu Oy Akt, Cl A 3,500 62 UPM - Kymmene 11,900 229 -------- Total Finland 486 -------- FRANCE (10.9%) Accor 1,197 173 Air Liquide 2,497 435 Alcatel Alsthom 4,183 381 Axa 5,898 335 Banque National Paris, Cl A 4,950 186 Bouygues 1,800 196 Carrefour 669 367 Carrefour Bonus Rights* 668 184 Cie Bancaire 1,660 182 Cie de Saint Gobain 3,826 489 Cie Financiara Paribas 4,093 249 Cie Generale des Eaux 2,945 315 Compagnie de Suez 5,063 196 CSF Thomson 7,000 183 Elf Aquitaine 8,312 602 Elf Sanofi 4,123 317 Eridania Beghin - Say 1,709 268 Groupe Danone 2,414 353 Havas 3,700 317 Lafarge Coppee 2,218 146 Legrand 950 168 L'Oreal 2,213 674 Louis Vuitton - Moet Hennessy 3,837 932 Lyonnaise des Eaux Dumez 2,050 199 Michelin, Cl B 4,244 214 Pernod - Ricard 3,729 245 Peugeot 2,290 319 Pinault - Printemps Redoute 550 170 54 ================================================================================ - -------------------------------------------------------------------------------- MARKET SHARES VALUE (000) - -------------------------------------------------------------------------------- FRANCE--CONTINUED Promodes 650 $ 170 Rhone - Poulenc, Cl A 13,550 338 Schneider 6,627 307 Societe Generale 2,630 280 Total Compaigne, Cl B 6,920 501 Unibail 1,850 192 -------- Total France 10,583 -------- GERMANY (16.4%) Aachener & Munchener Bete 216 136 Allianz 1,208 2,002 Asko Deutche Kaufhaus 156 106 BASF 2,755 766 Bayer 3,211 1,076 Bayerische Hypotheken und Wechselbank 9,900 250 Bayerische Vereinsbank 9,760 275 Biersdorf 167 152 Bremer Vulkan Verbund* 788 2 Colonia Konzern 156 102 Daimler - Benz* 2,123 1,166 Degussa 399 137 Deutsche Bank 26,770 1,258 Dresdner Bank Frankfurt 20,600 517 Heidelberger Zement 299 196 Hochtief 676 297 Karstadt 1,025 402 Kaufhof 821 284 Linde 341 218 Lufthansa 2,108 325 Man Muenchen 531 137 Mannesmann 1,103 384 Munchener Ruckvers 356 631 Preussag 1,261 321 RWE 15,240 600 SAP 2,800 381 Schering 4,610 347 Siemens 25,340 1,421 Strabag 90 9 Thyssen 1,351 250 Veba 19,110 1,001 Viag 1,133 440 Volkswagen 1,061 374 -------- Total Germany 15,963 -------- - -------------------------------------------------------------------------------- MARKET SHARES VALUE (000) - -------------------------------------------------------------------------------- HONG KONG (1.0%) Cathay Pacific Airways 45,000 $ 83 Cheung Kong Holdings 18,000 133 China Light & Power 15,000 71 Hang Seng Bank 14,900 156 Hong Kong Telecommunications 92,000 171 Hutchison Whampoa 22,000 141 Sun Hung Kai Properties 14,000 143 Swire Pacific, Cl A 9,000 80 -------- Total Hong Kong 978 -------- ITALY (9.0%) Assicurazioni Generali 67,575 1,607 Banca Commerciale Italiana 68,500 145 Banco Ambrosian 37,000 104 Benetton Group 14,500 178 Credito Italiano 245,000 305 Edison 52,000 303 Fiat 275,000 971 Fiat Non-Convertible 42,000 78 Fidis 44,000 125 Finanziaria Autogrill* 640 1 Istituto Bancario san Paolo di Torino 75,000 459 Istituto Nazionale 323,919 486 Italgas 80,000 289 Mediobanca 41,400 287 Montedison* 182,000 111 Olivetti* 252,500 158 Parmalat Finanziaria 102,800 129 Pirelli 120,000 198 RAS 34,835 369 Sirti 19,500 125 SME Meridonale di Electric 31,640 36 Telecom Italia 410,000 821 Telecom Italia di Risp 88,000 149 Telecom Italia Mobile 515,946 1,103 Telecom Italia Mobile di Risp 154,164 213 -------- Total Italy 8,750 -------- JAPAN (33.8%) Ajinomoto 16,000 193 Asahi Bank 37,000 446 Asahi Chemical Industries 46,000 334 Asahi Glass 31,000 374 55 STATEMENT OF NET ASSETS ================================================================================ STI CLASSIC FUNDS MAY 31, 1996 INTERNATIONAL EQUITY INDEX FUND--CONTINUED - -------------------------------------------------------------------------------- MARKET SHARES VALUE (000) - -------------------------------------------------------------------------------- JAPAN--CONTINUED Bank of Tokyo - Mitsubushi* 24,800 $ 589 Bank of Yokohama 11,000 94 Bridgestone 21,000 366 Chiba Bank 12,000 104 Chiyoda 5,000 56 Citizen Watch 17,000 139 Cosmo Oil 48,000 313 Dai-Ichi Kangyo Bank 45,000 814 Dai Nippon Printing 25,000 464 Daiei 11,000 135 Daimaru 17,000 124 Daiwa Kosho Lease 11,000 115 Daiwa Securities 24,000 323 Ebara 11,000 167 Fanuc 4,300 168 Fuji Bank 42,000 915 Fuji Photo Film 9,000 280 Fujitsu 22,000 200 Furukawa Electric 39,000 230 Hankyu 48,000 287 Hitachi 54,000 501 Honda Motor 16,000 386 Industrial Bank of Japan 38,000 980 Ito Ham Foods 1,000 8 Ito Yokado 5,000 284 Itochu 31,000 223 Japan Air Lines* 49,000 396 Japan Energy 41,000 159 Joyo Bank 13,000 102 Jusco 5,000 148 Kansai Electric Power 13,800 319 Kao 23,000 307 Kawasaki Steel 46,000 171 Kinki Nippon Railway 26,780 198 Kirin Brewery 21,000 261 Kobe Steel* 60,000 166 Komatsu 13,000 124 Kubota 37,000 248 Kyocera 4,000 274 Marui 6,000 124 Matsushita Electric 33,000 569 Mitsubishi 21,000 288 - -------------------------------------------------------------------------------- MARKET SHARES VALUE (000) - -------------------------------------------------------------------------------- Mitsubishi Chemical 45,000 $ 223 Mitsubishi Electric 62,000 425 Mitsubishi Estate 35,000 490 Mitsubishi Heavy Industries 65,000 560 Mitsubishi Materials 47,000 275 Mitsubishi Steel* 13,000 71 Mitsubishi Trust & Banking 23,000 384 Mitsui 23,000 212 Mitsui Trust & Banking 28,000 309 Mitsukoshi 16,000 177 Murata Manufacturing 3,000 110 NEC 32,000 353 New Oji Paper 39,000 341 Nichido Fire & Marine Insurance 15,750 128 Nippon Express 38,000 381 Nippon Oil 36,000 239 Nippon Paper Industries 30,000 202 Nippon Sharyo 5,000 50 Nippon Steel 88,000 299 Nippon Yusen 27,000 159 Nippondenso 26,000 562 Nissan Motor 45,000 371 NKK* 24,000 70 Nomura Securities 35,000 662 Obayashi 44,000 406 Odakyu Electric Railway 24,720 165 Olympus Optical 8,000 82 Osaka Gas 44,000 172 Ricoh 20,000 202 Sakura Bank 48,000 525 Sankyo 16,000 380 Sanyo Electric 32,000 191 Sega Enterprises 1,600 75 Sekisui Chemical 16,000 190 Sekisui House 7,000 82 Seven Eleven 7,000 428 Sharp 16,000 261 Shimizu 21,000 241 Shin - Etsu Chemical 9,450 189 Shizuoka Bank 13,000 169 Skylark 3,000 61 Sony 6,000 382 Sumitomo Bank 58,000 1,145 56 ================================================================================ - -------------------------------------------------------------------------------- MARKET SHARES VALUE (000) - -------------------------------------------------------------------------------- JAPAN--CONTINUED Sumitomo Chemical 47,000 $ 235 Sumitomo Metal 42,000 130 Taisei 61,000 461 Takeda Chemical 33,000 548 Teijin 28,000 145 Tobu Railway 23,000 149 Tohoku Electric Power 8,600 196 Tokai Bank 29,000 363 Tokio Marine & Fire Insurance 34,000 441 Tokyo Electric Power 16,600 426 Tokyo Electronics 5,000 154 Tokyo Gas 36,000 137 Tokyu 42,000 315 Toppan Printing 11,000 157 Toray 38,000 257 Tostem 5,000 146 Toto 18,000 265 Toyo Seikan Kaisha 5,000 179 Toyoda Automatic Loom 8,000 162 Toyota Motor 65,000 1,489 Yamaichi Securities 28,000 203 Yamanouchi Pharmaceutical 18,000 389 Yasuda Trust & Banking 20,000 121 -------- Total Japan 32,933 -------- NETHERLANDS (2.7%) ABN-Amro Holdings 3,850 212 Akzo Nobel 970 117 International Nederlanden 4,477 369 Koninklijke 5,370 194 Koninklijke Nederlanden Papierfabriek 2,724 68 Philips Electronics 3,742 133 Royal Dutch Petroleum 7,190 1,091 Unilever 1,850 252 Wolters Kluwer 1,761 197 -------- Total Netherlands 2,633 -------- NORWAY (1.0%) Bergesen, Cl A 5,700 111 Hafslund Nycomed, Cl B 5,900 41 - -------------------------------------------------------------------------------- MARKET SHARES VALUE (000) - -------------------------------------------------------------------------------- Kvaerner 2,250 $ 88 Norsk Hydro 12,200 579 Nycomed, Cl B* 5,900 119 Uni Storebrand* 16,012 77 -------- Total Norway 1,015 -------- SPAIN (3.8%) Argentaria Bancaria de Espana 4,616 193 Autopistas CESA 12,879 139 Banco Bilbao Vizcaya 7,937 300 Banco Central Hispano 5,523 111 Banco de Santander 5,066 231 Dragados Construccion 6,786 91 Empresa Nacional de Electricidad 10,736 667 Fomento de Construcciones Contratas 958 77 Gas Natural 1,322 233 Iberdola 37,946 385 Mapfre 1,018 50 Repsol 12,707 435 Telefonica de Espana 37,645 676 Union Electrica Fenosa 26,994 164 -------- Total Spain 3,752 -------- SWEDEN (1.9%) Asea, Cl A 1,950 202 Astra, Cl A 14,150 647 Electrolux, Cl B 1,300 66 Ericsson, Cl B 18,400 412 Skandinaviska Enskilda Banken 13,500 106 Skanska, Cl B 2,500 81 Stora Kopparbergs Bergslags, Cl A 5,000 67 Svenska Cellulosa, Cl B 7,000 137 Swedish Match 4,500 15 Volvo, Cl B 4,500 95 -------- Total Sweden 1,828 -------- SWITZERLAND (2.0%) Asea Brown Boveri 60 72 Ciba - Geigy 320 353 Nestle 372 420 Roche Holdings, Genusshein 34 261 Roche Holdlings, Bearer 12 146 57 STATEMENT OF NET ASSETS ================================================================================ STI CLASSIC FUNDS MAY 31, 1996 INTERNATIONAL EQUITY INDEX FUND--CONCLUDED - -------------------------------------------------------------------------------- MARKET SHARES VALUE (000) - -------------------------------------------------------------------------------- SWITZERLAND--CONTINUED Sandoz Pharmaceutical, Cl R 300 $ 312 Schweizerische Bankgesellschaft 200 187 Schweizerische Bankverein 1,300 231 -------- Total Switzerland 1,982 -------- UNITED KINGDOM (7.7%) Abbey National 32,519 279 B.A.T. Industries 36,624 295 Barclays Bank 28,563 333 Bass 17,787 225 Blue Circle Industries 46,936 256 British Gas 20,778 61 British Petroleum 93,113 802 British Telecommunications 55,837 308 BTR 47,897 209 Cable & Wireless 29,090 200 General Electric 61,851 357 Glaxo Wellcome 31,899 416 Grand Metropolitan 39,465 266 Great Universal Stores 14,129 149 Guinness 42,734 308 Hanson Trust 128,670 373 HSBC Holdings HK$10 22,268 338 HSBC Holdings, Ordinary 12,295 187 Imperial Chemical 15,754 208 Marks & Spencer 48,514 348 National Power 11,877 96 Reuters Holdings 24,899 290 Rio Tinto Zinc 20,914 326 RMC Group 6,371 99 Sainsbury, J. 22,515 138 SmithKline Beecham, Cl A 24,760 252 Unilever 13,002 242 Vodafone Groupe 36,942 146 -------- Total United Kingdom 7,507 -------- Total Foreign Common Stocks (Cost $86,238,260) 95,115 -------- - -------------------------------------------------------------------------------- SHARES/FACE MARKET AMOUNT (000) VALUE (000) - -------------------------------------------------------------------------------- FOREIGN PREFERRED STOCKS (1.2%) AUSTRALIA (0.1%) Newscorp 22,401 $ 109 -------- AUSTRIA (0.2%) Creditanstalt Bankverein 3,876 211 -------- FINLAND (0.1%) Nokia, Cl A 2,600 113 -------- GERMANY (0.7%) RWE 8,480 262 SAP 2,130 295 Volkswagen 197 53 -------- Total Germany 610 -------- ITALY (0.1%) Fiat 42,800 80 -------- Total Foreign Preferred Stocks (Cost $1,032,723) 1,123 -------- CASH EQUIVALENT (0.2%) Highmark Diversified Money Market Fund (A) 4.670% $ 257 257 -------- Total Cash Equivalent (Cost $256,765) 257 -------- Total Investments (99.0%) (Cost $87,527,748) 96,495 -------- OTHER ASSETS AND LIABILITIES (1.0%) Total Other Assets and Liabilities, Net 999 -------- NET ASSETS: Fund shares of the Trust Shares (unlimited authorization -- no par value) based on 8,304,051 outstanding shares of beneficial interest 81,977 58 ================================================================================ - -------------------------------------------------------------------------------- MARKET VALUE (000) - -------------------------------------------------------------------------------- Fund shares of the Investor Shares (unlimited authorization -- no par value) based on 514,693 outstanding shares of beneficial interest $ 5,175 Fund shares of the Flex Shares (unlimited authorization -- no par value) based on 84,360 outstanding shares of beneficial interest 878 Undistributed net investment income 232 Accumulated net realized gain on investments 269 Net unrealized appreciation on investments 8,967 Net unrealized depreciation on foreign currency and translation of other assets and liabilities in foreign currency (4) -------- Total Net Assets (100.0%) $ 97,494 ======== Net Asset Value, Offering Price and Redemption Price Per Share -- Trust Shares $ 10.96 ======== - -------------------------------------------------------------------------------- - -------------------------------------------------------------------------------- Net Asset Value and Redemption Price Per Share-- Investor Shares $ 10.88 ======== Maximum Public Offering Price Per Share -- Investor Shares ($10.88 (DIVIDE) 96.25%) $ 11.30 ======== Net Asset Value, Offering Price and Redemption Price Per Share -- Flex Shares (1) $ 10.87 ======== (1)The Flex Shares have a contingent sales charge. For a description of a possible sales charge, see notes to the financial statements. THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS. FOR DESCRIPTIONS OF ABBREVIATIONS, PLEASE SEE PAGE 101. 59 SCHEDULE OF INVESTMENTS ================================================================================ STI CLASSIC FUNDS MAY 31, 1996 INTERNATIONAL EQUITY FUND - -------------------------------------------------------------------------------- MARKET SHARES VALUE (000) - -------------------------------------------------------------------------------- FOREIGN COMMON STOCKS (95.7%) ARGENTINA (0.8%) Compania Inversiones Telefonica 30,000 $ 1,755 -------- AUSTRALIA (3.6%) Comalco 420,000 2,463 Leighton Holdings 560,000 1,881 Newscorp 125,779 706 QBE Insurance 88,632 506 Queensland Nickel 900,000 2,191 -------- Total Australia 7,747 -------- BRAZIL (2.2%) Telecom Brasileiras ADR 43,800 2,820 Usiminas ADR 180,000 1,947 -------- Total Brazil 4,767 -------- CANADA (3.5%) Alcan Aluminum 60,000 1,965 Bank of Montreal 85,000 2,022 CAE 224,988 1,946 Noranda 83,000 1,793 -------- Total Canada 7,726 -------- CROATIA (0.2%) Pliva GDR* 14,700 454 -------- DENMARK (1.8%) Novo Nordisk, Cl B 12,700 1,745 Sophus Berendsen, Cl B 16,000 2,130 -------- Total Denmark 3,875 -------- FINLAND (6.5%) Cultor, Ser 2 117,700 5,571 Finnair, Ser 1 220,000 1,760 Konecranes International* 50,000 1,221 Metra, Cl B 27,800 1,304 Tietotehdas, Cl B 50,000 2,271 UPM - Kymmene 110,000 2,120 -------- Total Finland 14,247 -------- - -------------------------------------------------------------------------------- MARKET SHARES VALUE (000) - -------------------------------------------------------------------------------- FRANCE (6.0%) B.I.S.* 11,135 $ 1,445 Christian Dior 42,350 5,986 Lagardere Groupe 87,500 2,377 Michelin, Cl B 40,000 2,018 Societe Generale 11,000 1,171 -------- Total France 12,997 -------- GERMANY (3.8%) Hoechst 3,000 1,003 Mannesmann 3,500 1,217 Siemens 32,000 1,795 Veba 59,600 3,121 Wella 2,000 1,066 -------- Total Germany 8,202 -------- HONG KONG (2.7%) Cheung Kong Holdings 300,000 2,220 Esprit Asia Holdings 1,066,000 355 HSBC Holdings 142,000 2,147 Swire Pacific, Cl A 125,000 1,111 -------- Total Hong Kong 5,833 -------- INDONESIA (1.3%) Asahimas Flat Glass 800,000 926 Indorama Synthetic, F 364,500 1,016 Tambang Timah, F 500,000 986 -------- Total Indonesia 2,928 -------- IRELAND (0.2%) CRH - Dublin 36,661 346 -------- ISRAEL (0.8%) Comverse Technology* 40,700 1,196 Koor Industries ADR 30,700 553 -------- Total Israel 1,749 -------- 60 ================================================================================ - -------------------------------------------------------------------------------- MARKET SHARES VALUE (000) - -------------------------------------------------------------------------------- ITALY (2.4%) Cartiere Burgo 336,000 $ 2,084 Instituto Mobiliare Italiano 130,000 1,063 Saipem 500,000 2,051 -------- Total Italy 5,198 -------- JAPAN (15.2%) Amway Japan ADR 87,900 2,110 Canon 282,000 5,543 Dai Nippon Printing 177,000 3,282 Fuji Photo Film 108,000 3,365 Mitsubishi Heavy Industries 475,000 4,092 Nippon Television Network 11,000 3,121 Omron 119,000 2,416 Paris Miki 51,700 2,267 Sanyo Shinpan Finance 13,300 911 Sony 95,400 6,077 -------- Total Japan 33,184 -------- MEXICO (4.0%) Alfa, Cl A 270,000 4,381 Panamerican Beverages, Cl A 103,000 4,326 -------- Total Mexico 8,707 -------- NETHERLANDS (8.6%) ABN - Amro Holding 46,000 2,537 Dutch State Mines 17,500 1,797 Fortis AMEV 56,000 4,364 Hollandsche Beton Groep 11,000 2,054 IHC Caland 24,200 1,117 International Nederlanden 55,000 4,528 VNU 140,000 2,295 -------- Total Netherlands 18,692 -------- NEW ZEALAND (0.3%) Fletcher Challenge Building Division 297,500 604 -------- - -------------------------------------------------------------------------------- MARKET SHARES VALUE (000) - -------------------------------------------------------------------------------- PANAMA (1.2%) Banco Latinamericano de Exportaciones 44,800 $ 2,570 -------- PERU (1.8%) Credicorp 102,707 1,900 Telefonica del Peru, Cl B 971,569 1,923 -------- Total Peru 3,823 -------- PHILIPPINES (2.0%) Benpres Holdings GDR* 519,961 4,290 -------- SOUTH AFRICA (0.7%) Rembrandt Group 173,000 1,540 -------- SOUTH KOREA (0.6%) Korea Chemical 10,000 1,253 -------- SPAIN (3.4%) Repsol 36,000 1,232 Telefonica de Espana 349,000 6,268 -------- Total Spain 7,500 -------- SWEDEN (8.5%) Avesta Sheffield* 170,200 1,733 Cardo 80,000 1,754 Dahl International* 45,000 616 Ericsson, Cl B 108,100 2,419 Gettinge, Cl B 213,300 3,900 Pharmacia & Upjohn 50,000 2,044 SKF, Cl B 70,000 1,571 Svedala Industrial 236,800 4,541 -------- Total Sweden 18,578 -------- 61 SCHEDULE OF INVESTMENTS ================================================================================ STI CLASSIC FUNDS MAY 31, 1996 INTERNATIONAL EQUITY FUND--CONCLUDED - -------------------------------------------------------------------------------- MARKET SHARES VALUE (000) - -------------------------------------------------------------------------------- SWITZERLAND (4.0%) Asea Brown Boveri 1,315 $ 1,575 Ciba - Geigy 2,100 2,314 Sandoz Pharmaceutical 1,300 1,351 SMH 13,700 2,127 Societe Generale de Surveillance 640 1,444 -------- Total Switzerland 8,811 -------- UNITED KINGDOM (9.6%) Astec 457,000 1,063 Bank of Ireland 301,055 2,128 B.A.T. Industries 520,000 4,184 British Airport Authority 200,000 1,522 CRH - Dublin 139,545 1,330 Grand Metropolitan 205,000 1,382 National Power 150,000 1,212 Orange ADR* 283,000 5,377 Rank Organisation 207,000 1,643 Unilever 55,000 1,023 -------- Total United Kingdom 20,864 -------- - -------------------------------------------------------------------------------- MARKET VALUE (000) - -------------------------------------------------------------------------------- Total Foreign Common Stocks (Cost $194,622,776) $208,240 -------- Total Investments (95.7% of Net Assets) (Cost $194,622,776) $208,240 ======== THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS. FOR DESCRIPTIONS OF ABBREVIATIONS, PLEASE SEE PAGE 101. 62 STATEMENT OF NET ASSETS ================================================================================ STI CLASSIC FUNDS MAY 31, 1996 SUNBELT EQUITY FUND - -------------------------------------------------------------------------------- MARKET SHARES VALUE (000) - -------------------------------------------------------------------------------- COMMON STOCKS (96.3%) AEROSPACE & DEFENSE (1.1%) Tech-Sym * 146,316 $ 4,993 -------- AIR TRANSPORTATION (3.9%) Atlantic Southeast Airlines 190,960 5,060 Comair 318,408 8,358 Southwest Airlines 139,901 3,830 -------- Total Air Transportation 17,248 -------- BANKS (2.8%) CCB Financial 64,475 3,353 Eagle Bancshares 78,426 1,314 First Tennessee National 125,577 4,223 Hibernia, Cl A 230,693 2,538 Texas Regional Bancshares, Cl A 43,740 1,072 -------- Total Banks 12,500 -------- BUILDING & CONSTRUCTION (1.0%) Beazer Homes USA* 89,605 1,534 Centex 89,994 2,711 -------- Total Building & Construction 4,245 -------- BUILDING & CONSTRUCTION SUPPLIES (1.4%) American Buildings* 111,881 3,440 NCI Building Systems* 78,427 2,686 -------- Total Building & Construction Supplies 6,126 -------- BUILDING-MOBILE HOMES (2.9%) Clayton Homes 167,943 3,233 Oakwood Homes 65,759 3,189 Palm Harbor Homes* 100,222 2,781 Redman Industries* 175,439 3,838 -------- Total Building-Mobile Homes 13,041 -------- COMMUNICATIONS EQUIPMENT (1.3%) Glenayre Technologies* 113,833 5,606 -------- COMPUTER SOFTWARE & SERVICES (5.1%) Harbinger* 102,328 2,456 Landmark Graphics* 148,237 2,779 National Data 115,701 4,368 - -------------------------------------------------------------------------------- MARKET SHARES VALUE (000) - -------------------------------------------------------------------------------- COMPUTER SOFTWARE & SERVICES--CONTINUED Nichols Research* 129,689 $ 4,182 Optical Data Systems* 47,458 1,092 SCB Computer Technology* 82,993 1,743 Sterling Commerce* 64,475 2,829 Sterling Software* 40,622 3,270 -------- Total Computer Software & Services 22,719 -------- ELECTRONICS (0.7%) SCI Systems* 73,747 3,319 -------- ENVIRONMENTAL SERVICES (1.0%) USA Waste Services* 147,491 4,351 -------- FINANCE-MORTGAGE (0.6%) Triad Guaranty* 80,530 2,879 -------- FINANCE-REIT (1.7%) Equity Inns 259,867 3,086 Felcor Suite Hotels 104,828 3,237 Winston Hotels 115,953 1,333 -------- Total Finance-REIT 7,656 -------- FINANCIAL SERVICES (3.2%) Capital One Financial 110,620 3,360 Medaphis* 284,812 10,752 -------- Total Financial Services 14,112 -------- FOOD, BEVERAGE & TOBACCO (1.0%) Tyson Foods 174,961 4,287 -------- HOTELS & LODGING (1.1%) Promus Hotel* 175,392 4,823 -------- INSURANCE (3.9%) Compdent* 135,960 6,594 Jefferson-Pilot 65,080 3,343 Provident* 92,296 3,311 United Finance 136,100 4,134 -------- Total Insurance 17,382 -------- 63 STATEMENT OF NET ASSETS ================================================================================ STI CLASSIC FUNDS MAY 31, 1996 SUNBELT EQUITY FUND--CONTINUED - -------------------------------------------------------------------------------- MARKET SHARES VALUE (000) - -------------------------------------------------------------------------------- LEISURE (1.1%) Play By Play Toys & Novelties* 92,182 $ 1,302 Varsity Spirit 209,341 3,506 -------- Total Leisure 4,808 -------- LUMBER & WOOD PRODUCTS (0.6%) American Homestar* 119,786 2,665 -------- MACHINERY (4.5%) Agco 92,182 2,777 Blount International 330,327 10,983 Greenfield Industries 116,591 4,401 Roper Industries 40,601 1,908 -------- Total Machinery 20,069 -------- MEASURING DEVICES (3.1%) Input/Output 344,567 13,912 -------- MEDICAL PRODUCTS & SERVICES (4.7%) Gulf South Medical Supply* 210,931 10,072 Phycor* 116,439 6,317 Quorum Health Group* 186,951 4,791 -------- Total Medical Products & Services 21,180 -------- METAL PRODUCTS & SERVICES (2.5%) Citation* 283,174 4,177 Imco Recycling 110,745 2,575 Wolverine Tube* 113,942 4,159 -------- Total Metal Products & Services 10,911 -------- MISCELLANEOUS BUSINESS SERVICES (2.8%) Norrell 106,725 4,416 PMT Services* 231,008 7,854 -------- Total Miscellaneous Business Services 12,270 -------- MISCELLANEOUS CONSUMER SERVICES (1.9%) Accustaff* 240 8 Central Parking 85,827 2,661 Service International 101,849 5,691 -------- Total Miscellaneous Consumer Services 8,360 -------- - -------------------------------------------------------------------------------- MARKET SHARES VALUE (000) - -------------------------------------------------------------------------------- OIL & GAS-DRILLING (4.2%) Diamond Offshore Drilling* 120,600 $ 5,774 Ensco International* 107,975 3,280 Global Marine * 383,022 4,692 Sonat Offshore Drilling 92,709 4,914 -------- Total Oil & Gas-Drilling 18,660 -------- OIL & GAS-EXPLORATION (1.9%) Nuevo Energy* 148,647 4,608 Stone Energy* 214,614 3,997 -------- Total Oil & Gas-Exploration 8,605 -------- OIL & GAS-INTEGRATED (1.6%) Louisiana Land & Exploration 73,838 3,978 Union Pacific Resources Group 119,934 3,088 -------- Total Oil & Gas-Integrated 7,066 -------- OIL & GAS-MACHINERY & EQUIPMENT (1.8%) Baker Hughes 70,386 2,208 Tidewater 135,956 5,608 -------- Total Oil & Gas-Machinery & Equipment 7,816 -------- OIL & GAS-MARKETING (0.9%) World Fuel Services 230,924 4,128 -------- OIL & GAS-SERVICES (2.6%) Global Industries* 92,183 2,858 Offshore Logistics* 92,182 1,337 Pride Petroleum Service* 255,444 4,406 Production Operators 79,513 2,902 -------- Total Oil & Gas-Services 11,503 -------- PAPER & PAPER PRODUCTS (2.5%) Inbrand* 262,435 7,643 Rock Tenn, Cl A 176,973 3,495 -------- Total Paper & Paper Products 11,138 -------- PRINTING & PUBLISHING (0.5%) Cadmus Communications 144,169 2,379 -------- 64 ================================================================================ - -------------------------------------------------------------------------------- MARKET SHARES VALUE (000) - -------------------------------------------------------------------------------- RETAIL (9.0%) Autozone* 203,852 $ 7,160 Bombay* 253,132 1,962 Books-A-Million* 367,876 4,368 Claire's Stores 222,839 5,571 Discount Auto Parts* 219,123 5,642 Dollar General 161,548 4,483 Food Lion, Cl A 11,187 86 Friedman's, Cl A* 148,271 4,189 Movie Gallery* 139,340 4,250 Sports & Recreation* 222,153 2,110 -------- Total Retail 39,821 -------- RETAIL-RESTAURANT (3.3%) Brinker International* 184,260 3,086 Cracker Barrel Old Country Stores 127,591 3,381 Longhorn Steaks* 93,233 2,401 Luby's Cafeterias 147,490 3,632 O'Charleys* 112,066 1,401 Sonic* 29,876 717 -------- Total Retail-Restaurant 14,618 -------- SEMI-CONDUCTORS/INSTRUMENTS (0.7%) AVX 92,123 2,004 Kemet* 53,241 1,185 -------- Total Semi-Conductors/Instruments 3,189 -------- STEEL & STEEL WORKS (0.6%) Maverick Tube* 204,034 2,678 -------- TELEPHONES & TELECOMMUNICATION (1.3%) Harris 52,056 3,364 Premiere Technologies* 37,418 1,768 U.S. Long Distance* 22,407 804 -------- Total Telephones & Telecommunication 5,936 -------- TRANSPORTATION SERVICES (1.3%) United Transnet* 222,334 5,642 -------- - -------------------------------------------------------------------------------- SHARES/FACE MARKET AMOUNT (000) VALUE (000) - -------------------------------------------------------------------------------- TRUCK & PARTS-HEAVY DUTY (1.8%) Miller Industries* 256,869 $ 8,059 -------- TRUCKING (2.5%) American Freightways* 458,778 5,849 M.S. Carriers* 46,096 887 MTL* 84,290 1,465 USA Truck* 233,217 2,682 -------- Total Trucking 10,883 -------- WHOLESALE (5.9%) Barnett* 188,947 4,535 Isolyser* 317,432 4,365 Kent Electronics* 183,645 6,519 Richfood Holdings 129,056 4,323 Serologicals* 63,717 1,657 Watsco 161,176 4,855 -------- Total Wholesale 26,254 -------- Total Common Stocks (Cost $329,210,358) 427,837 -------- CONVERTIBLE BONDS (3.0%) Food Lion, Convertible to 126.582 shares (B) 5.000%, 06/01/03 $1,873 1,981 HEALTHSOUTH Rehabilitation, Convertible to 26.5781 shares 5.000%, 04/01/01 4,413 8,407 Pride Petroleum Services, Convertible to 81.6327 shares 6.250%, 02/15/06 1,872 2,979 -------- Total Convertible Bonds (Cost $11,611,272) 13,367 -------- 65 STATEMENT OF NET ASSETS ================================================================================ STI CLASSIC FUNDS MAY 31, 1996 SUNBELT EQUITY FUND--CONCLUDED - -------------------------------------------------------------------------------- FACE AMOUNT MARKET (000) VALUE (000) - -------------------------------------------------------------------------------- REPURCHASE AGREEMENT (0.1%) Swiss Bank 5.27%, dated 05/31/96, matures 06/03/96, repurchase price $432,113 (collateralized by U.S. Treasury Bond, par value $746,000, 8.75%, 05/15/20: market value $888,829) 432 $ 432 -------- Total Repurchase Agreement (Cost $431,924) 432 -------- Total Investments (99.4%) (Cost $341,253,554) 441,636 -------- OTHER ASSETS AND LIABILITIES (0.6%) Total Other Assets and Liabilities, Net 2,501 -------- NET ASSETS: Fund shares of the Trust Class (unlimited authorization --no par value) based on 29,227,841 outstanding shares of benefical interest 298,601 Fund shares of the Investor Class (unlimited authorization--no par value) based on 2,078,593 outstanding shares of beneficial interest 20,386 - -------------------------------------------------------------------------------- MARKET VALUE (000) - -------------------------------------------------------------------------------- Fund shares of the Flex Class (unlimited authorization--no par value) based on 193,565 outstanding shares of beneficial interest $ 2,386 Accumulated net realized gain on investments 22,383 Unrealized appreciation on investments 100,381 -------- Total Net Assets (100.0%) $444,137 ======== Net Asset Value, Offering Price and Redemption Price Per Share-- Trust Shares $ 14.11 ======== Net Asset Value and Redemption Price Per Share--Investor Shares $ 13.95 ======== Maximum Public Offering Price Per Share--Investor Shares ($13.95 (DIVIDE) 96.25%) $ 14.49 ======== Net Asset Value, Offering Price and Redemption Price Per Share-- Flex Shares (1) $ 13.97 ======== (1) The Flex Shares have a contingent sales charge. For a description of a possible sales charge, see notes to the financial statements. THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS. FOR DESCRIPTIONS OF ABBREVIATIONS, PLEASE SEE PAGE 101. 66 SCHEDULE OF INVESTMENTS ================================================================================ STI CLASSIC FUNDS MAY 31, 1996 INVESTMENT GRADE TAX-EXEMPT BOND FUND - -------------------------------------------------------------------------------- FACE AMOUNT MARKET (000) VALUE (000) - -------------------------------------------------------------------------------- MUNICIPAL BONDS (89.8%) ARIZONA (2.0%) Phoenix, GO, Ser A 5.000%, 07/01/19 $1,600 $ 1,400 Phoenix, Ser B Callable 07/01/05 @ 100 5.500%, 07/01/08 2,000 2,005 -------- Total Arizona 3,405 -------- FLORIDA (12.8%) Dade County, Water & Sewer Systems, RB (FGIC) 6.250%, 10/01/10 1,000 1,064 Jacksonville, Electric Authority Revenue, RB, Callable 10/01/00 @ 101.50 6.750%, 10/01/05 1,000 1,085 Okeechobee Correctional Facility, COP (AMBAC) 5.800%, 03/01/03 1,000 1,041 Palm Beach County, Solid Waste Resource Recovery Revenue, RB Callable 12/01/04 @ 100 (MBIA) 6.000%, 12/01/06 1,500 1,575 Reedy Creek, Improvement District Utility Revenue Ser 1991-1, RB, Pre-Refunded 10/01/01 @ 101 (MBIA) 6.500%, 10/01/16 3,000 3,274 State Board of Education Capital Outlay, Ser C, Pre-Refunded 06/01/02 @ 101 6.625%, 06/01/22 3,000 3,304 State Bond Finance Department, Environmental Department, Preservation 2000 Project, Ser A (MBIA) 5.000%, 07/01/03 3,000 2,993 5.000%, 07/01/04 5,000 4,956 Volusia County, Master Lease Program, COP, Callable 08/01/01 @ 102 (FSA) 6.625%, 08/01/06 2,000 2,210 -------- Total Florida 21,502 -------- - -------------------------------------------------------------------------------- FACE AMOUNT MARKET (000) VALUE (000) - -------------------------------------------------------------------------------- GEORGIA (0.9%) Downtown Savannah Authority, Chatham County Detention Project, Ser A, RB, Pre-Refunded 01/01/99 @ 102 6.400%, 01/01/01 $1,415 $ 1,509 -------- ILLINOIS (2.6%) Chicago, GO, Callable 07/01/07 @ 100 (AMBAC) 5.900%, 01/01/09 1,680 1,705 Chicago, Motor Fuel Tax Revenue, RB, Pre-Refunded 01/01/01 @ 102 (AMBAC) 7.100%, 01/01/11 1,500 1,665 Chicago, Wastewater Transmission Revenue, RB (FGIC) 5.375%, 01/01/13 1,100 1,046 -------- Total Illinois 4,416 -------- IOWA (0.7%) LeClaire, Electric Authority Revenue, RB, Mandatory Put 09/01/96 @ 100 4.125%, 09/01/26 1,185 1,186 -------- LOUISIANA (1.2%) State Refunding GO, Ser A (FGIC) 6.000%, 08/01/00 2,000 2,085 -------- MARYLAND (3.8%) Stadium Authority, Sports Facility, RB 5.300%, 03/01/07 1,205 1,194 5.300%, 03/01/08 1,000 983 5.400%, 03/01/10 1,125 1,098 State Industrial Development Authority, Bon Secours Health Systems Project, RB (MBIA) 5.500%, 08/15/20 1,940 1,814 Worcester County, Public Improvements Project, RB 5.400%, 08/01/11 1,315 1,262 -------- Total Maryland 6,351 -------- 67 SCHEDULE OF INVESTMENTS ================================================================================ STI CLASSIC FUNDS MAY 31, 1996 INVESTMENT GRADE TAX-EXEMPT BOND FUND--CONCLUDED - -------------------------------------------------------------------------------- FACE AMOUNT MARKET (000) VALUE (000) - -------------------------------------------------------------------------------- MICHIGAN (5.5%) Detroit, School District, Ser A, GO (AMBAC) 6.250%, 05/01/06 $1,040 $ 1,106 6.500%, 05/01/07 1,165 1,258 6.500%, 05/01/08 2,305 2,481 6.500%, 05/01/09 2,455 2,642 Underground Storage Tank Financial Assurance Authority, Ser I, RB (AMBAC) 5.000%, 05/01/01 1,750 1,757 -------- Total Michigan 9,244 -------- MINNESOTA (14.4%) Burnsville, Independent School District #191, Ser A, GO 4.875%, 02/01/13 1,450 1,269 State GO 4.750%, 05/01/00 4,710 4,734 4.750%, 05/01/01 2,430 2,436 5.000%, 08/01/01 4,000 4,055 State RB, Ser A, (AMBAC) 5.000%, 06/30/99 6,445 6,509 5.000%, 06/30/00 5,000 5,031 -------- Total Minnesota 24,034 -------- MISSISSIPPI (1.7%) State GO, Callable 12/01/04 @ 100 6.400%, 12/01/07 2,595 2,767 -------- MISSOURI (1.4%) State Environmental Improvements Energy Resource Authority, Pollution Control, RB 5.750%, 12/01/02 2,305 2,391 -------- NEW JERSEY (2.1%) State GO, Ser E 5.000%, 07/15/00 3,475 3,518 -------- - -------------------------------------------------------------------------------- FACE AMOUNT MARKET (000) VALUE (000) - -------------------------------------------------------------------------------- NEW YORK (10.4%) Battery Park City Authority, RB, Pre-Refunded 05/01/99 @ 100 6.500%, 05/01/20 $10,000 $ 10,563 State Dorm Authority, State University Educational Facilities, RB (FGIC) 5.875%, 05/15/11 2,000 2,060 State GO, Pre-Refunded 03/01/00 @ 102 (AMBAC) 7.100%, 03/01/20 1,650 1,821 State Local Assistance Corporation, Ser A, RB, Pre-Refunded 04/01/01 @ 102 7.000%, 04/01/16 1,065 1,186 Triborough Bridge & Tunnel Authority, Ser B, RB 5.000%, 01/01/14 2,000 1,828 -------- Total New York 17,458 -------- OHIO (3.4%) Cleveland, Waterworks First Mortgage, Ser F-92 A, RB, Pre-Refunded 01/01/02 @ 102 (AMBAC) 6.500%, 01/01/21 3,250 3,567 State Building Authority, State Correctional Facilities, Ser C, RB, Callable 10/01/1996 @ 102 8.400%, 04/01/97 2,000 2,064 -------- Total Ohio 5,631 -------- OKLAHOMA (2.7%) State Industrial Authority Health Systems, Integris Baptist Medical Center, RB, (AMBAC) 6.000%, 08/15/10 1,000 1,025 Tulsa, Hospital Revenue, RB, Pre-Refunded 06/01/03 @ 102 7.200%, 06/01/17 3,000 3,439 -------- Total Oklahoma 4,464 -------- 68 ================================================================================ - -------------------------------------------------------------------------------- FACE AMOUNT MARKET (000) VALUE (000) - -------------------------------------------------------------------------------- PUERTO RICO (14.4%) Commonwealth Highway & Transportation Authority, Ser Z, RB (FSA) 6.000%, 07/01/18 $10,500 $ 10,920 Commonwealth Public Improvements, RB, Pre-Refunded 07/01/02 @ 101.50 6.800%, 07/01/21 7,000 7,805 Commonwealth Unlimited Tax GO (MBIA) 6.500%, 07/01/07 1,500 1,661 Electric & Power Authority, Ser K, RB, Pre-Refunded 07/01/97 @ 102 9.250%, 07/01/06 2,500 2,690 Electric Power Authority, Ser W, RB (MBIA) 6.000%, 07/01/01 1,000 1,049 -------- Total Puerto Rico 24,125 -------- SOUTH CAROLINA (0.7%) State Public Service Authority, Ser B, RB, Pre-Refunded 07/01/01 @ 102 7.100%, 07/01/21 1,000 1,120 -------- TEXAS (2.7%) Alief, Independent School District, GO (PSFG) 5.000%, 02/15/13 1,025 935 5.000%, 02/15/14 1,025 923 State Unlimited GO, College Student Loan, Callable 08/01/02 @ 100 (F) 6.200%, 08/01/04 1,420 1,491 Wylie, Independent School District, GO, Callable 08/15/11 @ 100 (PSFG) 6.900%, 08/15/13 1,100 1,213 -------- Total Texas 4,562 -------- - -------------------------------------------------------------------------------- FACE AMOUNT MARKET (000) VALUE (000) - -------------------------------------------------------------------------------- VIRGINIA (4.6%) Southeastern Public Service Authority, Ser A (MBIA) 5.000%, 07/01/07 $5,700 $ 5,493 State Transportation Board, U.S. Route 58 Corridor Project, Ser A, RB 5.250%, 05/15/12 2,250 2,129 -------- Total Virginia 7,622 -------- WASHINGTON (1.8%) Tacoma, Department of Public Utilities, RB, Callable 07/01/96 @ 102 8.600%, 01/01/97 2,000 2,048 9.000%, 01/01/00 1,000 1,023 -------- Total Washington 3,071 -------- Total Municipal Bonds (Cost $151,156,212) 150,461 -------- CASH EQUIVALENT (4.5%) SEI Tax Exempt Trust Institutional Tax Free Portfolio 7,509 7,509 -------- Total Cash Equivalent (Cost $7,509,478) 7,509 -------- Total Investments (94.3% of Net Assets) (Cost $158,665,690) 157,970 ======== THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS. FOR DESCRIPTIONS OF ABBREVIATIONS, PLEASE SEE PAGE 101. 69 SCHEDULE OF INVESTMENTS ================================================================================ STI CLASSIC FUNDS MAY 31, 1996 FLORIDA TAX-EXEMPT BOND FUND - -------------------------------------------------------------------------------- FACE AMOUNT MARKET (000) VALUE (000) - -------------------------------------------------------------------------------- MUNICIPAL BONDS (91.2%) FLORIDA (72.8%) Brevard County, Health Facilities, Wuesthoff Memorial Hospital Project, RB (MBIA) 6.250%, 04/01/06 $ 930 $ 996 Brevard County, School Board, COP, Ser A (AMBAC) 5.400%, 07/01/12 1,000 963 Dade County, Aviation Revenue, Ser A, RB, Callable 10/01/05 @ 102 (AMBAC) 6.000%, 10/01/09 500 517 Dade County, Seaport Revenue, RB (MBIA) 6.200%, 10/01/07 750 801 6.200%, 10/01/08 750 797 Dade County, Water & Sewer System, RB (FGIC) 6.250%, 10/01/07 755 815 6.250%, 10/01/09 750 803 Deerfield Beach, Water & Sewer Revenue, RB (FGIC) 6.125%, 10/01/06 250 267 Florida Keys, Aqueduct Authority Revenue, RB, Pre-Refunded 09/01/01 @ 101 (AMBAC) 6.750%, 09/01/21 170 187 Gainesville Utility Systems, Ser A, RB 5.750%, 10/01/09 500 511 Gulf Breeze, Local Government Lien, Ser B, RB, Mandatory Tender 12/01/08 (FGIC) 5.650%, 12/01/15 460 466 Gulf Breeze, Local Government Lien, Ser B, RB, Mandatory Tender 12/01/09 (FGIC) 5.750%, 12/01/15 410 416 Hillsborough County, Capital Improvement Revenue, RB (FGIC) 5.900%, 08/01/04 300 320 - -------------------------------------------------------------------------------- FACE AMOUNT MARKET (000) VALUE (000) - -------------------------------------------------------------------------------- Hillsborough County, School Board Revenue, COP, Callable 07/01/06 @ 100 (MBIA) 5.875%, 07/01/08 $1,000 $ 1,025 Hillsborough County, Tampa Port Authority, RB, ETM, Callable 06/01/05 @ 102 (FSA) (F) 5.600%, 06/01/07 500 500 Hillsborough County, University Community Hospital, RB (MBIA) 6.500%, 08/15/19 145 156 Indian Trace Community, Water Management Split Benefit, Ser A-1, RB, Callable 05/01/05 @ 102 (MBIA) 5.500%, 05/01/07 455 458 Jacksonville, Water & Sewer Revenue, RB, Callable 10/01/06 @ 102 (MBIA) 5.125%, 10/01/15 500 454 Key West, Sewer Revenue, Ser A, RB, Pre-Refunded 10/01/96 @ 103 (FGIC) 7.125%, 10/01/26 500 520 Lakeland, Electric & Water Revenue, RB 6.650%, 10/01/98 100 105 Lakeland, Hospital Systems, Lakeland Regional Medical Center Project, RB Callable 11/15/06 @ 102 (MBIA) 5.000%, 11/15/11 1,570 1,444 Miami, Health Facilities, Mercy Hospital Project, Ser A, RB Callable 8/15/04 @ 102 (AMBAC) 5.125%, 08/15/20 1,700 1,500 North Broward, Hospital District Revenue, RB (MBIA) 5.950%, 01/01/01 1,000 1,045 70 ================================================================================ - -------------------------------------------------------------------------------- FACE AMOUNT MARKET (000) VALUE (000) - -------------------------------------------------------------------------------- Orange County, Health Facilities Authority, Pre-Refunded Municipal Certificates, RB, ETM 5.700%, 10/01/12 $ 500 $ 504 Orange County, Public Facilities Revenue, Ser A, RB, Callable 10/01/04 @ 102 (AMBAC) 5.650%, 10/01/07 200 204 Orlando, Community Water & Electric Revenue, RB, ETM 9.625%, 10/01/03 450 578 Orlando, Community Water & Electric Revenue, Ser D, RB 6.750%, 10/01/17 500 563 Orlando, Parking Facilities Revenue, Ser A, RB Callable 10/01/04 @ 101 (FGIC) 5.000%, 10/01/12 1,000 911 Palm Beach, Health Facilities Revenue, JFK Medical Center Project, RB, Pre-Refunded 12/01/03 @ 102 (FSA) 5.750%, 12/01/14 365 389 Pinellas County, Morton Plant Health Systems Project, RB, Callable 11/15/03 @ 102 (MBIA) 5.500%, 11/15/08 1,500 1,494 Plant City, Utility System Revenue, RB, Callable 10/01/04 @ 101 (MBIA) 6.000%, 10/01/15 400 410 Reedy Creek, Utility Revenue, Ser 1991-1, RB, Pre-Refunded 10/01/01 @ 101 (MBIA) 6.250%, 10/01/11 240 259 Sarasota, Sarasota-Manatee Airport Authority, Ser B, Callable 08/01/96 @ 102 7.700%, 08/01/06 200 205 - -------------------------------------------------------------------------------- FACE AMOUNT MARKET (000) VALUE (000) - -------------------------------------------------------------------------------- South Miami, Health Facilities Revenue, Baptist Health Systems, RB, Callable 10/01/05 @ 102 (MBIA) 5.250%, 10/01/09 $1,000 $ 963 State Board of Education Capital Outlay, RB 6.600%, 06/01/98 125 130 State Board of Education Capital Outlay, Ser B, GO, Callable 06/01/02 @ 101 5.900%, 06/01/12 450 452 State Board of Education Capital Outlay, Ser B, RB, Callable 06/01/02 @ 101 6.000%, 06/01/15 170 171 State Board of Education, Public Education Administration Cap, Ser B, GO Pre-Refunded 06/01/97 @ 102 7.750%, 06/01/16 425 450 State Board of Education, Ser C, GO, ETM, Pre-Refunded 06/01/97 @ 102 7.100%, 07/01/07 190 196 State Board of Education, Ser E, GO, Callable 06/01/05 @ 101 5.000%, 06/01/20 2,000 1,750 State Board of Finance Department, General Services Revenue, Preservation 2000 Project, Ser A, RB (AMBAC) 5.300%, 07/01/04 460 466 State Department of Natural Resources, Preservation 2000 Project, Ser A, RB, Callable 07/01/01 @ 102 (AMBAC) 6.750%, 07/01/06 80 88 State Pollution Control, Ser N, GO, Callable 07/01/96 @ 102 8.000%, 07/01/97 420 427 71 SCHEDULE OF INVESTMENTS ================================================================================ STI CLASSIC FUNDS MAY 31, 1996 FLORIDA TAX-EXEMPT BOND FUND--CONCLUDED - -------------------------------------------------------------------------------- FACE AMOUNT MARKET (000) VALUE (000) - -------------------------------------------------------------------------------- State Transportation Authority, GO, Pre-Refunded 07/01/00 @ 102 7.375%, 07/01/11 $ 100 $ 112 State Turnpike Authority Revenue, Ser A, RB, Callable 07/01/03 @ 101 (FGIC) 5.000%, 07/01/16 500 444 State Turnpike Authority, Ser A, RB, Pre-Refunded 07/01/02 @ 101 (FGIC) 6.350%, 07/01/22 970 1,056 ------- Total Florida 27,288 ------- PUERTO RICO (18.4%) Commonwealth, GO (MBIA) 4.500%, 07/01/03 2,100 2,061 Commonwealth, GO, Pre-Refunded 07/01/98 @ 102 8.000%, 07/01/06 500 546 Commonwealth, Highway & Transportation Authority, Ser Y, RB (FSA) 5.000%, 07/01/16 750 678 Commonwealth, Highway & Transportation Authority, Ser Z, RB (MBIA) 6.250%, 07/01/14 2,000 2,140 Electric Power Authority Revenue, Ser S, RB 5.500%, 07/01/00 200 206 Public Buildings Authority Revenue, Guaranteed Government Facilities, Ser A, RB (AMBAC) 6.250%, 07/01/14 750 798 - -------------------------------------------------------------------------------- FACE AMOUNT MARKET (000) VALUE (000) - -------------------------------------------------------------------------------- Public Buildings Authority Revenue, Public Education & Health Facilities, RB 5.300%, 07/01/03 $ 475 $ 479 ------- Total Puerto Rico 6,908 ------- Total Municipal Bonds (Cost $34,552,846) 34,196 ------- CASH EQUIVALENTS (3.8%) AIM Management Institutional Tax-Free Portfolio 1,352 1,352 SEI Tax-Exempt Trust Institutional Tax-Free Portfolio 102 102 ------- Total Cash Equivalents (Cost $1,454,437) 1,454 ------- Total Investments (95.0% of Net Assets) (Cost $36,007,283) 35,650 ======= THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS. FOR DESCRIPTIONS OF ABBREVIATIONS, PLEASE SEE PAGE 101. 72 STATEMENT OF NET ASSETS ================================================================================ STI CLASSIC FUNDS MAY 31, 1996 TENNESSEE TAX-EXEMPT BOND FUND - -------------------------------------------------------------------------------- FACE AMOUNT MARKET (000) VALUE (000) - -------------------------------------------------------------------------------- MUNICIPAL BONDS (98.0%) TENNESSEE (74.7%) Chattanooga, Health Facilities Board, Memorial Hospital Project, Ser A, RB (MBIA) 6.300%, 09/01/05 $ 20 $ 21 Chattanooga, GO, Callable 08/01/02 @ 102 5.900%, 08/01/05 50 52 Chattanooga-Hamilton County, Erlanger Medical Center Project, RB (FSA) 5.600%, 10/01/08 50 50 Hamilton County, GO, Callable 07/01/04 @ 102 5.500%, 07/01/08 100 100 Harpeth Valley, Utility District Revenue, RB, Callable 09/01/03 @ 102 5.625%, 09/01/07 100 100 Jackson, Water & Sewer Utilities Revenue, RB, Callable 07/01/06 @ 100 (AMBAC) 5.250%, 07/01/11 200 190 Johnson City, Water & Sewer Regulation System, GO, Callable 05/01/06 @ 100 (AMBAC) 5.800%, 05/01/09 100 101 Kingsport, GO 5.500%, 09/01/02 50 52 Knox County, First Utility District Sewer Revenue, RB, ETM 7.250%, 12/01/05 55 64 Knox County, Health Facilities Board, Mercy Health Systems, Ser B, RB, Callable 09/01/05 @ 100 (AMBAC) 5.875%, 09/01/15 50 50 Knoxville, Natural Gas Revenue, Ser E, Callable 03/01/03 @ 100 5.900%, 03/01/10 100 100 Madison County, Ser A, GO, Callable 08/01/01 @ 102 6.000%, 08/01/05 40 41 - -------------------------------------------------------------------------------- FACE AMOUNT MARKET (000) VALUE (000) - -------------------------------------------------------------------------------- Madison County, Water Revenue, RB, Callable 02/01/08 @ (MBIA) 5.500%, 02/01/09 $250 $ 244 Memphis-Shelby County, Airport Authority, RB, Callable 09/01/05 @ 100 (MBIA) 5.550%, 09/01/08 50 50 Memphis-Shelby County, Airport Authority, Ser B, RB (MBIA) (F) 6.500%, 02/15/09 85 90 Metro Government, Nashville & Davidson County, Electric System Revenue, RB 5.625%, 05/15/14 200 194 Metro Government, Nashville & Davidson County, Water & Sewer Revenue, RB, ETM 6.500%, 12/01/14 225 242 Metro Government, Nashville & Davidson County, Convention Center Project, GO, ETM 6.250%, 03/01/10 200 214 Metro Government, Nashville & Davidson County, Electric Revenue, RB, ETM 6.000%, 07/01/04 100 107 Metro Government, Nashville & Davidson County, Correctional Facility Impovements, RB, Callable 09/01/01 @ 102 7.000%, 09/01/11 100 108 Metro Government, Nashville & Davidson County, Water & Sewer, RB, Callable 01/01/04 @ 100 (AMBAC) 5.900%, 01/01/07 100 103 Metro Government, Nashville & Davidson County, Vanderbilt University Hospital, RB, ETM, Callable 07/01/06 @ 100 6.100%, 07/01/10 100 107 Metro Government, Nashville & Davidson County, Vanderbilt University, Ser A, RB 5.500%, 01/01/06 125 126 73 STATEMENT OF NET ASSETS ================================================================================ STI CLASSIC FUNDS MAY 31, 1996 TENNESSEE TAX-EXEMPT BOND FUND--CONCLUDED - -------------------------------------------------------------------------------- FACE AMOUNT MARKET (000) VALUE (000) - ------------------------------------------------------------------------------- TENNESSEE --CONTINUED Shelby County, GO 5.100%, 03/01/13 $300 $ 281 Shelby County, School Boards, GO, Callable 03/01/02 @ 101 5.800%, 03/01/10 300 301 Shelby County, Ser A, GO 5.500%, 03/01/10 300 293 Sullivan County, Health Facilities Board, Holston Valley Health, RB, Callable 02/15/05 @ 100 (MBIA) 5.750%, 02/15/13 50 49 State GO, Ser C 5.000%, 03/01/04 100 100 State GO, Ser A, Callable 03/01/07 @ 100 5.500%, 03/01/09 50 50 State Local Development Authority, State Loan Program, Ser A, RB, Callable 03/01/04 @ 100 7.000%, 03/01/12 50 54 State Metropolitan Nashville Airport, Ser B, RB, Pre-Refunded 07/01/01 @ 102 (FGIC) 7.750%, 07/01/06 100 115 State Housing Development Agency, Ser A, RB (AMBAC) 6.550%, 01/01/08 50 52 State School Board Authority, Higher Education Facilities, Ser A, RB, Callable 05/01/02 @ 101.5 5.800%, 05/01/04 150 155 Williamson County, Rural School, GO, Callable 09/01/06 @ 100 5.400%, 09/01/07 50 49 ------ Total Tennessee 4,005 ------ PUERTO RICO (23.3%) Commonwealth, GO, Pre-Refunded 07/01/98 @ 102 8.000%, 07/01/06 500 547 - -------------------------------------------------------------------------------- FACE AMOUNT MARKET (000) VALUE (000) - -------------------------------------------------------------------------------- Commonwealth, GO, Callable 07/01/05 @ 100 (MBIA) 5.500%, 07/01/13 $175 $ 170 Commonwealth, Highway & Transportation Authority, Ser Z, RB (MBIA) 6.250%, 07/01/15 500 533 ------ Total Puerto Rico 1,250 ------ Total Municipal Bonds (Cost $5,287,821) 5,255 ------ CASH EQUIVALENT (0.7%) SEI Tax-Exempt Trust Institutional Tax-Free Portfolio 36 36 ------ Total Cash Equivalent (Cost $36,106) 36 ------ Total Investments (98.7%) (Cost $5,323,927) 5,291 ------ OTHER ASSETS AND LIABILITIES, NET (1.3%) Total Other Assets and Liabilities, Net 72 ------ NET ASSETS: Fund shares of the Trust Class (unlimited authorization --no par value) based on 193,781 outstanding shares of benefical interest 1,813 Fund shares of the Investor Class (unlimited authorization--no par value) based on 161,737outstanding shares of beneficial interest 1,528 Fund shares of the Flex Class (unlimited authorization--no par value) based on 214,422 outstanding shares of beneficial interest 2,056 Accumulated net realized loss on investments (1) Unrealized depreciation on investments (33) ------ Total Net Assets (100.0%) $5,363 ====== 74 ================================================================================ - -------------------------------------------------------------------------------- - -------------------------------------------------------------------------------- NET ASSETS--CONTINUED: Net Asset Value, Offering Price and Redemption Price Per Share--Trust Shares $ 9.40 ====== Net Asset Value Redemption Price Per Share--Investor Shares $ 9.42 ====== Maximum Public Offering Price Per Share-- Investor Shares ($9.42 (DIVIDE) 96.25%) $ 9.79 ====== Net Asset Value, Offering Price and Redemption Price Per Share--Flex Shares (1) $ 9.41 ====== (1)The Flex Shares have a contingent sales charge. For a description of a possible sales charge, see notes to the financial statements. THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS. FOR DESCRIPTIONS OF ABBREVIATIONS, PLEASE SEE PAGE 101. 75 STATEMENT OF NET ASSETS ================================================================================ STI CLASSIC FUNDS MAY 31, 1996 GEORGIA TAX-EXEMPT BOND FUND - -------------------------------------------------------------------------------- FACE AMOUNT MARKET (000) VALUE (000) - -------------------------------------------------------------------------------- MUNICIPAL BONDS (93.0%) GEORGIA (93.0%) Albany-Dougherty County, Georgia Hospital Authority, Ser B, Anticipation Cerificate, Pre-Refunded 09/01/00 @ 102 (AMBAC) 7.500%, 09/01/20 $ 255 $ 287 Athens, Water & Sewer Revenue, RB (ETM) 5.700%, 07/01/00 165 172 Atlanta, Airport Facilities Revenue, Callable Anytime @ 100 (AMBAC) 6.300%, 01/01/07 500 501 Augusta, Water & Sewer Revenue, RB, Callable 05/01/02 @ 102 6.200%, 05/01/03 130 138 Bibb County, GO 7.000%, 01/01/04 985 1,102 Cherokee County, School District, GO, Callable 06/01/02 @ 102 6.375%, 06/01/07 605 645 Clayton County, Water & Sewer Authority, RB (AMBAC) 5.350%, 05/01/09 1,500 1,463 Cobb County & Marietta, Coliseum & Exhibit Hall Authority, RB (MBIA) 5.500%, 10/01/12 940 920 Cobb County & Marietta, Water Authority, RB 5.100%, 11/01/04 1,000 1,003 Cobb County, GO 5.000%, 02/01/03 1,025 1,025 Columbus, Water & Sewer, RB (FGIC) 6.300%, 05/01/07 300 318 Dalton-Whitfield County, Hospital Authority, RB, Pre-Refunded 07/01/00 @ 102 7.000%, 07/01/03 355 391 DeKalb County, Development Authority, Emory University Project, RB 5.375%, 11/01/05 650 657 - -------------------------------------------------------------------------------- FACE AMOUNT MARKET (000) VALUE (000) - -------------------------------------------------------------------------------- DeKalb County, Development Authority, Emory University Project, Ser A, RB 5.200%, 11/01/08 $ 500 $ 485 DeKalb County, RB, Pre-Refunded 01/01/02 @ 102 6.350%, 01/01/05 510 555 DeKalb County, School District, Ser A, GO 6.250%, 07/01/11 1,250 1,345 DeKalb County, Water & Sewer Authority, RB, Callable 10/01/03 @ 102 5.125%, 10/01/14 1,455 1,309 East Point Building Authority, RB (AMBAC) 4.800%, 02/01/07 535 506 Fayette County, School District, GO 6.250%, 03/01/07 450 487 Fayette County, Water Authority, RB (MBIA) (ETM) 8.550%, 10/01/01 300 352 Forsyth County, GO 6.500%, 07/01/06 1,000 1,097 Fulton County, Hospital Authority, Northside Hospital Project, Ser B, RB, Pre-Refunded 10/01/02 @ 102 (MBIA) 6.625%, 10/01/16 575 638 6.600%, 10/01/11 1,250 1,386 Gwinnett County, Recreation Authority, RB 5.875%, 02/01/07 1,390 1,442 Gwinnett County, School District, Ser B 6.400%, 02/01/07 1,000 1,087 Hall County, GO 6.300%, 12/01/05 675 728 Henry County, School District, Ser B, GO (MBIA) 5.500%, 08/01/01 350 361 Henry County, School District, Ser A, GO 6.150%, 08/01/06 150 159 76 ================================================================================ - -------------------------------------------------------------------------------- FACE AMOUNT MARKET (000) VALUE (000) - -------------------------------------------------------------------------------- GEORGIA--CONTINUED Henry County, GO 6.300%, 08/01/08 $ 300 $ 321 Henry County, Water & Sewer Authority, GO 4.700%, 02/01/04 120 116 Housing Authority, Single Family Mortgage, Ser B, Sub-series B-1, RB 5.550%, 12/01/07 550 553 Medical Center Hospital Authority, Columbus Regional Healthcare System, RB 6.000%, 08/01/06 1,000 1,049 Metrpolitan Atlanta Rapid Transit Authority, Sinking Fund 07/01/08 @ 100 7.000%, 07/01/11 875 973 Paulding County, School District, Ser A 6.625%, 02/01/08 500 553 Private Colleges & Universities Facilities Authority, Emory University Project, Ser C, RB, Callable 10/01/02 @ 102 5.900%, 10/01/04 305 320 Private Colleges & Universities Facilities Authority, Spelman College Project, RB (FGIC) 6.000%, 06/01/09 475 487 Rockdale County, School District, RB, Pre-Refunded 01/01/99 @ 102 6.400%, 01/01/05 150 160 Savannah, Water & Sewer Revenue, RB 6.450%, 12/01/04 1,000 1,099 State GO, Ser B, Pre-Refunded 07/01/99 @ 102 6.800%, 07/01/06 460 498 State GO, Ser C 6.500%, 04/01/08 1,000 1,107 - -------------------------------------------------------------------------------- FACE AMOUNT MARKET (000) VALUE (000) - -------------------------------------------------------------------------------- Vidalia, Water & Sewer Revenue, RB (ETM) 6.000%, 07/01/07 $ 605 $ 642 ------- Total Georgia 28,437 ------- Total Municipal Bonds (Cost $29,017,611) 28,437 ------- CASH EQUIVALENTS (5.5%) AIM Management Institutional Tax-Free Portfolio 424 424 SEI Tax-Exempt Trust Institutional Tax-Free Portfolio 1,241 1,241 ------- Total Cash Equivalents (Cost $1,664,716) 1,665 ------- Total Investments (98.5%) (Cost $30,682,327) 30,102 ------- OTHER ASSETS AND LIABILITIES (1.5%) Total Other Assets and Liabilities, Net 473 ------- NET ASSETS: Fund shares of the Trust Class (unlimited authorization --no par value) based on 2,400,749 outstanding shares of benefical interest 23,200 Fund shares of the Investor Class (unlimited authorization--no par value) based on 356,968 outstanding shares of beneficial interest 3,478 Fund shares of the Flex Class (unlimited authorization--no par value) based on 440,098 outstanding shares of beneficial interest 4,281 77 STATEMENT OF NET ASSETS ================================================================================ STI CLASSIC FUNDS MAY 31, 1996 GEORGIA TAX-EXEMPT BOND FUND--CONCLUDED - -------------------------------------------------------------------------------- MARKET VALUE (000) - -------------------------------------------------------------------------------- NET ASSETS--CONTINUED: Accumulated net realized gain on investments $ 196 Unrealized depreciation on investments (580) ------- Total Net Assets (100.0%) $30,575 ======= Net Asset Value, Offering Price and Redemption Price Per Share--Trust Shares $ 9.56 ======= Net Asset Value and Redemption Price Per Share--Investor Shares $ 9.58 ======= Maximum Public Offering Price Per Share-- Investor Shares ($9.58 (DIVIDE) 96.25%) $ 9.95 ======= Net Asset Value, Offering Price and Redemption Price Per Share--Flex Shares (1) $ 9.56 ======= (1)The Flex Shares have a contingent sales charge. For a description of a possible sales charge, see notes to the financial statements. THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS. FOR DESCRIPTIONS OF ABBREVIATIONS, PLEASE SEE PAGE 101. 78 ================================================================================ INVESTMENT GRADE BOND FUND - -------------------------------------------------------------------------------- FACE AMOUNT MARKET (000) VALUE (000) - -------------------------------------------------------------------------------- U.S. TREASURY OBLIGATIONS (52.0%) U.S. Treasury Bonds 7.500%, 11/15/16 $65,000 $ 67,310 8.125%, 08/15/19 37,500 41,444 U.S. Treasury Notes 5.625%, 01/31/98 16,000 15,860 7.500%, 10/31/99 27,600 28,379 6.250%, 08/31/00 56,000 55,201 7.500%, 11/15/01 11,000 11,394 7.500%, 05/15/02 50,500 52,471 5.750%, 08/15/03 64,500 60,716 -------- Total U.S. Treasury Obligations (Cost $340,493,441) 332,775 -------- CORPORATE OBLIGATIONS (29.0%) Aristar Financial 7.500%, 07/01/99 11,000 11,157 Associates of North America, MTN 8.470%, 01/12/00 6,000 6,316 AT&T Capital 5.500%, 02/09/98 14,000 13,786 Capital One Bank 6.660%, 08/17/98 7,000 6,956 Capital One Bank, MTN 6.490%, 08/15/97 19,850 19,800 Ford Motor Credit, MTN 6.110%, 12/28/01 13,000 12,383 General Electric Capital 6.660%, 05/01/18 21,000 20,737 International Lease Finance, MTN 8.125%, 01/15/98 15,000 15,346 Merrill Lynch 7.375%, 05/15/06 23,000 22,713 Paine Webber 6.250%, 06/15/98 5,500 5,409 Salomon 6.700%, 12/01/98 20,000 19,874 Sears, MTN 7.360%, 08/15/97 15,000 15,187 - -------------------------------------------------------------------------------- FACE AMOUNT MARKET (000) VALUE (000) - -------------------------------------------------------------------------------- Societe Generale, New York 7.400%, 06/01/06 $16,500 $ 16,335 -------- Total Corporate Obligations (Cost $187,719,112) 185,999 -------- U.S. GOVERNMENT AGENCY OBLIGATIONS (15.9%) FHLMC 8.000%, 06/01/02 10,232 10,484 FNMA 8.500%, 04/01/17 18,099 18,484 GNMA 9.000%, 11/15/17 34,172 36,255 6.500%, 12/15/23 39,335 36,397 -------- Total U.S. Government Agency Obligations (Cost $102,434,144) 101,620 -------- ASSET-BACKED SECURITIES (0.1%) Merrill Lynch, Ser 1993-1, A2 5.125%, 07/15/98 394 394 -------- Total Asset-Backed Securities (Cost $394,377) 394 -------- REPURCHASE AGREEMENT (4.5%) Deutsche Bank 5.27%, dated 05/31/96, matures 06/03/96, repurchase price $28,939,456 (collateralized by various U.S. Treasury obligations, total par value $53,881,000, 0.00%-9.125%, 08/22/96- 08/15/20: total market value $29,506,244) 28,927 28,927 -------- Total Repurchase Agreement (Cost $28,926,752) 28,927 -------- Total Investments (101.5%) (Cost $659,967,826) 649,715 -------- 79 STATEMENT OF NET ASSETS ================================================================================ STI CLASSIC FUNDS MAY 31, 1996 INVESTMENT GRADE BOND FUND--CONCLUDED - -------------------------------------------------------------------------------- MARKET VALUE (000) - -------------------------------------------------------------------------------- OTHER ASSETS AND LIABILITIES (-1.5%) Total Other Assets and Liabilities, Net $ (9,425) -------- NET ASSETS: Fund shares of the Trust Class (unlimited authorization --no par value) based on 59,555,941 outstanding shares of benefical interest 615,859 Fund shares of the Investor Class (unlimited authorization--no par value) based on 3,592,421 outstanding shares of beneficial interest 37,624 Fund shares of the Flex Class (unlimited authorization--no par value) based on 458,624 outstanding shares of beneficial interest 4,759 Undistributed net investment income 157 Accumulated net realized loss on investments (7,856) Unrealized depreciation on investments (10,253) -------- Total Net Assets (100.0%) $640,290 ======== - -------------------------------------------------------------------------------- - -------------------------------------------------------------------------------- Net Asset Value, Offering Price and Redemption Price Per Share--Trust Shares $ 10.07 ======== Net Asset Value and Redemption Price Per Share--Investor Shares $ 10.06 ======== Maximum Public Offering Price Per Share--Investor Shares ($10.06 (DIVIDE) 96.25%) $ 10.45 ======== Net Asset Value, Offering Price and Redemption Price Per Share-- Flex Shares (1) $ 10.07 ======== 1)The Flex Shares have a contingent sales charge. For a description of a possible sales charge, see notes to the financial statements. THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS. FOR DESCRIPTIONS OF ABBREVIATIONS, PLEASE SEE PAGE 101. 80 ================================================================================ SHORT-TERM BOND FUND - -------------------------------------------------------------------------------- FACE AMOUNT MARKET (000) VALUE (000) - -------------------------------------------------------------------------------- U.S. TREASURY OBLIGATIONS (57.5%) U.S. Treasury Bond 6.125%, 05/15/98 $ 2,000 $ 1,996 U.S. Treasury Notes 6.000%, 08/31/97 3,750 3,749 7.250%, 02/15/98 7,500 7,622 4.750%, 09/30/98 10,000 9,668 4.750%, 10/31/98 9,000 8,684 5.500%, 02/28/99 18,000 17,588 7.500%, 11/15/01 5,000 5,179 ------- Total U.S. Treasury Obligations (Cost $55,153,402) 54,486 ------- CORPORATE OBLIGATIONS (27.5%) Associates of North America 5.790%, 01/19/01 750 714 Associates of North America, MTN 5.980%, 12/19/00 1,250 1,200 Chrysler Financial 6.440%, 06/23/99 1,000 989 Dow Capital BV 5.750%, 09/15/97 1,250 1,247 Federal Express 6.250%, 04/15/98 750 743 Ford Motor Credit 6.250%, 11/08/00 1,500 1,453 General Electric Capital Callable & Putable 4/14/98 @ 100 (C)(D) 6.650%, 04/14/08 2,000 2,005 General Motors Acceptance 8.170%, 01/02/00 1,672 1,715 Household Netherlands BV 6.125%, 03/01/03 2,035 1,915 International Lease Finance 5.625%, 03/01/98 1,000 985 6.125%, 11/01/99 1,500 1,464 Norwest 6.125%, 10/15/00 1,000 965 NYNEX Credit, MTN 6.900%, 06/15/99 2,000 2,005 Pacific 5.880%, 10/15/97 1,000 993 - -------------------------------------------------------------------------------- FACE AMOUNT MARKET (000) VALUE (000) - -------------------------------------------------------------------------------- Philip Morris 9.000%, 05/15/98 $ 1,500 $ 1,564 Puget Sound Power & Light, MTN 7.875%, 10/01/97 1,250 1,275 RJR Nabisco 8.300%, 04/15/99 1,000 1,033 Sears Roebuck Acceptance, MTN 6.300%, 10/18/00 1,250 1,209 6.150%, 11/15/05 750 722 Tenneco Credit 10.000%, 08/01/98 1,750 1,864 ------- Total Corporate Obligations (Cost $26,548,543) 26,060 ------- U.S. AGENCY MORTGAGE-BACKED OBLIGATIONS (5.2%) FHLMC 6.500%, 04/01/98 1,135 1,125 8.000%, 01/01/00 1,318 1,325 FNMA 8.500%, 11/01/01 2,395 2,456 ------- Total U.S. Agency Mortgage-Backed Obligations (Cost $4,962,568) 4,906 ------- ASSET-BACKED SECURITIES (4.6%) Premier Auto Trust Series, Ser 1995-3, Cl A4 6.100%, 07/06/99 3,000 2,997 Union Pacific Equipment Trust 7.060%, 05/15/03 1,500 1,479 ------- Total Asset-Backed Securities (Cost $4,520,923) 4,476 ------- CERTIFICATE OF DEPOSIT (1.5%) Wachovia Bank 5.400%, 02/20/01 1,500 1,404 ------- Total Certificate of Deposit (Cost $1,474,542) 1,404 ------- 81 STATEMENT OF NET ASSETS ================================================================================ STI CLASSIC FUNDS MAY 31, 1996 SHORT-TERM BOND FUND--CONCLUDED - -------------------------------------------------------------------------------- FACE AMOUNT MARKET (000) VALUE (000) - -------------------------------------------------------------------------------- CASH EQUIVALENT (2.7%) SEI Daily Income Trust Prime Obligation Portfolio $2,584 $ 2,584 ------- Total Cash Equivalent (Cost $2,583,673) 2,584 ------- Total Investments (99.0%) (Cost $95,243,651) 93,916 ------- OTHER ASSETS AND LIABILITIES (1.0%) Total Other Assets and Liabilities, Net 906 ------- NET ASSETS: Fund shares of the Trust Class (unlimited authorization --no par value) based on 9,240,587 outstanding shares of benefical interest 91,971 Fund shares of the Investor Class (unlimited authorization--no par value) based on 273,195 outstanding shares of beneficial interest 2,729 Fund shares of the Flex Class (unlimited authorization--no par value) based on 97,806 outstanding shares of beneficial interest 983 - -------------------------------------------------------------------------------- MARKET VALUE (000) - -------------------------------------------------------------------------------- Undistributed net investment income $ 90 Accumulated net realized gain on investments 377 Unrealized depreciation on investments (1,328) ------- Total Net Assets (100.0%) $94,822 ======= Net Asset Value, Offering Price and Redemption Price Per Share-- Trust Shares $ 9.86 ======= Net Asset Value and Redemption Price Per Share--Investor Shares $ 9.88 ======= Maximum Public Offering Price Per Share--Investor Shares ($9.88 (DIVIDE) 98.00%) $ 10.08 ======= Net Asset Value, Offering Price and Redemption Price Per Share-- Flex Shares (1) $ 9.88 ======= (1)The Flex Shares have a contingent sales charge. For a description of a possible sales charge, see notes to the financial statements. THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS. FOR DESCRIPTIONS OF ABBREVIATIONS, PLEASE SEE PAGE 101. 82 ================================================================================ SHORT-TERM U.S. TREASURY SECURITIES FUND - -------------------------------------------------------------------------------- FACE AMOUNT MARKET (000) VALUE (000) - -------------------------------------------------------------------------------- U.S. TREASURY OBLIGATIONS (93.1%) U.S. Treasury Bond 6.125%, 05/15/98 $2,250 $ 2,245 U.S. Treasury Notes 7.500%, 01/31/97 300 303 6.375%, 06/30/97 2,000 2,010 6.000%, 08/31/97 2,650 2,649 7.250%, 02/15/98 900 915 5.125%, 06/30/98 2,250 2,201 5.875%, 08/15/98 1,400 1,388 5.500%, 11/15/98 1,600 1,569 5.000%, 01/31/99 1,900 1,836 6.375%, 05/15/99 500 499 ------- Total U.S. Treasury Obligations (Cost $15,734,275) 15,615 ------- CASH EQUIVALENT (3.0%) SEI Daily Income Trust Treasury II Portfolio 501 501 ------- Total Cash Equivalent (Cost $500,598) 501 ------- Total Investments (96.1%) (Cost $16,234,873) 16,116 ------- OTHER ASSETS AND LIABILITIES (3.9%) Total Other Assets and Liabilities, Net 648 ------- - -------------------------------------------------------------------------------- MARKET VALUE (000) - -------------------------------------------------------------------------------- NET ASSETS: Fund shares of the Trust Class (unlimited authorization --no par value) based on 1,031,587 outstanding shares of benefical interest $10,430 Fund shares of the Investor Class (unlimited authorization--no par value) based on 426,165 outstanding shares of beneficial interest 4,283 Fund shares of the Flex Class (unlimited authorization--no par value) based on 245,766 outstanding shares of beneficial interest 2,454 Undistributed net investment income 52 Accumulated net realized loss on investments (337) Unrealized depreciation on investments (118) ------- Total Net Assets (100.0%) $16,764 ======= Net Asset Value, Offering Price and Redemption Price Per Share--Trust Shares $ 9.84 ======= Net Asset Value and Redemption Price Per Share--Investor Shares $ 9.84 ======= Maximum Public Offering Price Per Share--Investor Shares ($9.84 (DIVIDE) 99.00%) $ 9.94 ======= Net Asset Value, Offering Price and Redemption Price Per Share-- Flex Shares (1) $ 9.82 ======= (1)The Flex Shares have a contingent sales charge. For a description of a possible sales charge, see notes to the financial statements. THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS. FOR DESCRIPTIONS OF ABBREVIATIONS, PLEASE SEE PAGE 101. 83 STATEMENT OF NET ASSETS ================================================================================ STI CLASSIC FUNDS MAY 31, 1996 LIMITED-TERM FEDERAL MORTGAGE SECURITIES FUND - -------------------------------------------------------------------------------- FACE AMOUNT MARKET (000) VALUE (000) - -------------------------------------------------------------------------------- U.S. TREASURY OBLIGATIONS (37.6%) U.S. Treasury Notes 8.750%, 10/15/97 $ 600 $ 621 8.125%, 02/15/98 5,800 5,976 8.875%, 11/15/98 1,600 1,689 8.875%, 02/15/99 4,300 4,557 9.125%, 05/15/99 4,200 4,495 7.125%, 09/30/99 2,200 2,238 7.500%, 10/31/99 4,300 4,421 7.125%, 02/29/00 3,960 4,027 6.125%, 07/31/00 1,000 981 ------- Total U.S. Treasury Obligations (Cost $29,422,934) 29,005 ------- U.S. GOVERNMENT AGENCY OBLIGATIONS (59.1%) FHLMC 6.830%, 09/29/97 3,000 3,038 6.000%, 07/01/00 5,315 5,103 8.000%, 06/01/02 1,461 1,498 7.000%, 10/01/02 4,736 4,716 8.000%, 12/01/02 4,053 4,121 FHLMC REMIC, Ser 1637-E 5.750%, 02/15/19 2,699 2,605 FNMA 8.500%, 04/01/17 1,357 1,386 FNMA REMIC, Ser 92-68J 7.500%, 10/25/05 4,200 4,227 FNMA REMIC, Ser 93-95PC 5.500%, 12/25/05 7,000 6,861 FNMA REMIC, Ser G96-1PC 7.000%, 05/01/26 4,921 4,922 FNMA REMIC, Ser 1992-134G 6.000%, 11/25/18 5,586 5,372 GNMA 9.000%, 11/15/17 1,666 1,768 ------- Total U.S. Government Agency Obligations (Cost $45,647,939) 45,617 ------- - -------------------------------------------------------------------------------- FACE AMOUNT MARKET (000) VALUE (000) - -------------------------------------------------------------------------------- CASH EQUIVALENT (0.7%) SEI Liquid Asset Trust Prime Obligation Portfolio $ 548 $ 548 ------- Total Cash Equivalent (Cost $548,340) 548 ------- REPURCHASE AGREEMENT (7.4%) J.P. Morgan 5.24%, dated 05/31/96, matures 06/03/96, repurchase price $5,760,404 (collateralized by various FNMA obligations, total par value $6,210,000, 6.00%-7.00%, 05/01/11: total market value $5,874,449) 5,758 5,758 ------- Total Repurchase Agreement (Cost $5,757,890) 5,758 ------- Total Investments (104.8%) (Cost $81,377,103) 80,928 ------- OTHER ASSETS AND LIABILITIES, NET (-4.8%) Investment Securities Purchased Payable (4,924) Other Assets and Liabilities,Net 1,227 ------- Total Other Assets and Liabilities,Net (3,697) ------- NET ASSETS: Fund shares of the Trust Class (unlimited authorization --no par value) based on 7,347,381 outstanding shares of benefical interest 73,656 Fund shares of the Investor Class (unlimited authorization--no par value) based on 251,847 outstanding shares of beneficial interest 2,534 Fund shares of the Flex Class (unlimited authorization--no par value) based on 135,071 outstanding shares of beneficial interest 1,369 Accumulated net investment loss (2) 84 ================================================================================ - -------------------------------------------------------------------------------- MARKET VALUE (000) - -------------------------------------------------------------------------------- NET ASSETS--CONTINUED: Accumulated net realized gain on investments $ 122 Unrealized depreciation on investments (448) ------- Total Net Assets (100.0%) $77,231 ======= Net Asset Value, Offering Price and Redemption Price Per Share--Trust Shares $ 9.99 ======= Net Asset Value and Redemption Price Per Share--Investor Shares $ 9.97 ======= Maximum Public Offering Price Per Share-- Investor Shares ($9.97 (DIVIDE) 97.50%) $ 10.23 ======= Net Asset Value, Offering Price and Redemption Price Per Share--Flex Shares (1) $ 9.99 ======= (1)The Flex Shares have a contingent sales charge. For a description of a possible sales charge, see notes to the financial statements. THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS. FOR DESCRIPTIONS OF ABBREVIATIONS, PLEASE SEE PAGE 101. 85 STATEMENT OF NET ASSETS ================================================================================ STI CLASSIC FUNDS MAY 31, 1996 U.S. GOVERNMENT SECURITIES FUND - -------------------------------------------------------------------------------- FACE AMOUNT MARKET (000) VALUE (000) - -------------------------------------------------------------------------------- U.S. TREASURY OBLIGATIONS (37.5%) U.S. Treasury Bond 6.875%, 08/15/25 $1,000 $ 976 U.S. Treasury Notes 8.500%, 04/15/97 100 102 7.875%, 04/15/98 150 154 7.125%, 10/15/98 500 509 7.750%, 11/30/99 200 207 8.500%, 11/15/00 1,000 1,071 7.750%, 02/15/01 100 104 8.000%, 05/15/01 200 211 7.500%, 11/15/01 600 621 7.500%, 05/15/02 100 104 7.875%, 11/15/04 275 292 7.500%, 02/15/05 1,000 1,041 7.625%, 02/15/25 400 425 ------ Total U.S. Treasury Obligations (Cost $5,992,435) 5,817 ------ U.S. AGENCY MORTGAGE-BACKED OBLIGATIONS (54.9%) FHLMC 7.000%, 01/01/09 153 151 7.000%, 04/01/09 511 503 7.000%, 04/01/09 164 162 FHLMC CMO 7.000%, 08/01/10 1,004 986 FNMA REMIC, Ser G93-40, Cl VC 6.500%, 08/25/10 261 242 FNMA, Ser 1990-143, Cl J 8.750%, 12/25/20 140 146 GNMA 7.500%, 10/20/09 83 83 8.250%, 01/15/12 123 127 7.000%, 11/15/22 436 415 8.000%, 02/15/23 42 43 8.500%, 03/15/23 91 93 7.500%, 04/15/23 146 143 7.500%, 05/20/23 1,000 948 7.500%, 09/15/23 922 903 - -------------------------------------------------------------------------------- FACE AMOUNT MARKET (000) VALUE (000) - -------------------------------------------------------------------------------- 7.000%, 01/15/24 $ 179 $ 171 7.500%, 04/15/24 958 939 7.000%, 06/15/24 953 908 8.000%, 08/15/24 120 122 8.000%, 09/15/24 29 29 8.000%, 10/15/24 38 39 8.000%, 11/15/24 42 43 8.500%, 12/15/24 78 80 8.500%, 02/15/25 41 42 7.000%, 12/15/25 495 472 7.000%, 12/20/25 248 235 7.000%, 03/15/26 509 485 ------- Total U.S. Agency Mortgage-Backed Obligations (Cost $8,763,727) 8,510 ------- CASH EQUIVALENTS (7.5%) SEI Daily Income Trust Government II Portfolio 730 730 SEI Daily Income Trust Treasury II Portfolio 431 431 ------- Total Cash Equivalents (Cost $1,160,595) 1,161 ------- Total Investments (99.9%) (Cost $15,916,757) 15,488 ------- OTHER ASSETS AND LIABILITIES (0.1%) Total Other Assets and Liabilities, Net 11 ------- NET ASSETS: Fund shares of the Trust Class (unlimited authorization --no par value) based on 1,037,259 outstanding shares of benefical interest 10,588 Fund shares of the Investor Class (unlimited authorization--no par value) based on 241,893 outstanding shares of beneficial interest 2,453 86 ================================================================================ - -------------------------------------------------------------------------------- MARKET VALUE (000) - -------------------------------------------------------------------------------- NET ASSETS--CONTINUED: Fund shares of the Flex Class (unlimited authorization--no par value) based on 285,283 outstanding shares of beneficial interest $ 2,930 Accumulated net realized loss on investments (44) Unrealized depreciation on investments (428) ------- Total Net Assets (100.0%) $15,499 ======= Net Asset Value, Offering Price and Redemption Price Per Share-- Trust Shares $ 9.91 ======= - -------------------------------------------------------------------------------- - -------------------------------------------------------------------------------- Net Asset Value and Redemption Price Per Share--Investor Shares $ 9.90 ======= Maximum Public Offering Price Per Share-- Investor Shares ($9.90 (DIVIDE) 96.25%) $ 10.29 ======= Net Asset Value, Offering Price and Redemption Price Per Share--Flex Shares (1) $ 9.91 ======= (1)The Flex Shares have a contingent sales charge. For a description of a possible sales charge, see notes to the financial statements. THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS. FOR DESCRIPTIONS OF ABBREVIATIONS, PLEASE SEE PAGE 101. 87 STATEMENT OF NET ASSETS ================================================================================ STI CLASSIC FUNDS MAY 31, 1996 PRIME QUALITY MONEY MARKET FUND - -------------------------------------------------------------------------------- FACE AMOUNT VALUE (000) (000) - -------------------------------------------------------------------------------- COMMERCIAL PAPER (55.0%) Arco Coal Australia 5.310%, 07/10/96 $20,429 $ 20,312 Associates of North America 5.300%, 06/17/96 35,000 34,918 AT&T 5.300%, 06/27/96 1,300 1,295 5.300%, 08/05/96 2,700 2,674 Banc One Funding 5.310%, 06/11/96 28,951 28,908 5.310%, 06/14/96 7,419 7,405 5.320%, 07/10/96 8,703 8,653 Bankers Trust (C) 5.550%, 02/14/97 20,000 20,000 BellSouth Telephone 5.300%, 06/13/96 10,000 9,982 Beneficial Finance 5.300%, 06/05/96 25,000 24,985 Cargill 5.290%, 07/01/96 20,000 19,912 5.350%, 06/14/96 4,500 4,491 Cargill Financial Services 5.400%, 06/03/96 16,399 16,394 Carolina Power & Light 5.300%, 09/03/96 1,782 1,757 Caterpillar Finance Australia 5.300%, 06/03/96 2,238 2,237 Colgate-Palmolive 5.280%, 06/25/96 1,200 1,196 5.320%, 07/22/96 25,400 25,209 Commoloco 5.320%, 07/10/96 20,000 19,885 Dow Chemical 5.300%, 06/06/96 2,200 2,198 5.300%, 06/18/96 1,000 998 Dresser Industries 5.300%, 06/03/96 1,486 1,486 5.320%, 06/03/96 3,300 3,299 5.290%, 06/24/96 1,271 1,267 Eaton 5.400%, 01/03/97 7,570 7,325 5.380%, 01/13/97 13,711 13,248 - -------------------------------------------------------------------------------- FACE AMOUNT VALUE (000) (000) - -------------------------------------------------------------------------------- Exxon Imperial 5.300%, 06/12/96 $12,110 $ 12,090 5.280%, 06/18/96 1,226 1,223 First Chicago Financial 5.330%, 06/03/96 20,000 19,994 Ford Motor Credit 5.300%, 06/26/96 1,000 996 5.310%, 06/07/96 2,500 2,498 Gannett 5.300%, 06/14/96 8,775 8,758 General Electric Capital 5.290%, 06/17/96 1,410 1,407 General Re 5.320%, 06/27/96 7,100 7,073 General Telephone Northwest 5.290%, 06/12/96 2,376 2,372 Golden Peanut 5.230%, 06/10/96 2,000 1,997 GTE Northwest 5.320%, 06/14/96 16,883 16,851 H.J. Heinz 5.300%, 06/10/96 1,600 1,598 Hanson Finance 5.380%, 07/17/96 10,000 9,931 5.390%, 07/29/96 20,000 19,826 5.400%, 08/09/96 5,000 4,948 5.370%, 08/19/96 2,500 2,471 IBM Credit 5.300%, 06/03/96 6,650 6,648 5.280%, 06/03/96 2,000 2,000 5.290%, 06/13/96 3,300 3,294 International Lease Finance 5.300%, 06/12/96 1,210 1,208 John Hancock Capital 5.300%, 07/11/96 2,800 2,784 Kansas City Power & Light 5.290%, 06/11/96 1,830 1,827 5.290%, 06/12/96 1,500 1,498 Marsh & McLennan 5.320%, 07/12/96 17,000 16,897 McGraw Hill 5.230%, 07/09/96 5,000 4,972 88 ================================================================================ - -------------------------------------------------------------------------------- FACE AMOUNT VALUE (000) (000) - -------------------------------------------------------------------------------- COMMERCIAL PAPER--CONTINUED New England Power 5.300%, 06/11/96 $ 1,796 $ 1,793 5.300%, 06/13/96 6,475 6,464 5.290%, 06/18/96 2,275 2,269 5.320%, 06/19/96 5,300 5,286 5.350%, 06/20/96 8,000 7,977 5.350%, 06/21/96 7,703 7,680 Panasonic Finance 5.350%, 06/03/96 2,000 1,999 5.350%, 06/04/96 1,268 1,268 5.310%, 06/07/96 10,000 9,991 5.300%, 07/16/96 10,000 9,934 Philip Morris 5.400%, 06/03/96 26,845 26,837 PPG Industries 5.300%, 07/11/96 18,000 17,894 Progress Capital 5.300%, 06/03/96 15,800 15,795 5.300%, 06/05/96 1,600 1,599 5.320%, 06/07/96 2,100 2,098 5.290%, 06/10/96 7,000 6,991 Sony Capital 5.280%, 06/05/96 12,147 12,140 5.320%, 06/21/96 2,892 2,884 South Carolina Electric & Gas 5.320%, 06/07/96 1,000 999 5.400%, 07/12/96 2,500 2,485 Southern California Edison 5.300%, 09/05/96 10,035 9,893 Transamerica 5.310%, 06/14/96 26,375 26,324 Unilever 5.330%, 12/12/96 4,000 3,885 Walt Disney 5.320%, 07/08/96 1,000 995 5.220%, 07/17/96 10,000 9,933 Weyerhauser 5.300%, 06/04/96 1,500 1,499 5.320%, 06/10/96 2,700 2,696 5.310%, 06/10/96 3,725 3,720 5.300%, 06/12/96 19,050 19,019 - -------------------------------------------------------------------------------- FACE AMOUNT VALUE (000) (000) - -------------------------------------------------------------------------------- WMX Technologies 5.330%, 11/01/96 $23,050 $ 22,528 5.330%, 11/05/96 15,000 14,651 Xerox 5.300%, 06/19/96 2,021 2,016 ---------- Total Commercial Paper (Cost $696,736,514) 696,737 ---------- CORPORATE OBLIGATIONS (19.4%) American General Finance 5.800%, 04/01/97 1,000 1,000 Associates of North America 4.625%, 11/30/96 3,000 2,992 Banc One Milwaukee (C) 5.420%, 05/14/97 25,000 24,984 BankAmerica 7.500%, 03/15/97 2,850 2,889 Bankers Trust New York 8.000%, 03/15/97 5,642 5,736 Beneficial, MTN 8.700%, 08/15/96 9,000 9,057 9.375%, 02/17/97 1,500 1,544 Caterpillar Financial Services, MTN 4.640%, 09/30/96 1,000 997 Caterpillar Financial Services, MTN (C) 5.400%, 06/14/96 1,000 1,000 5.394%, 07/23/96 15,000 15,000 CoreStates Capital (C) 5.410%, 11/26/96 30,000 30,000 5.430%, 12/03/96 10,000 10,000 Dean Witter Discover, MTN (C) 5.618%, 11/22/96 15,000 15,010 Ford Motor 5.200%, 01/01/97 9,800 9,799 Ford Motor Credit 5.625%, 03/03/97 4,500 4,511 8.875%, 08/01/96 2,400 2,413 Ford Motor Credit, MTN 9.050%, 07/23/96 2,000 2,010 89 STATEMENT OF NET ASSETS ================================================================================ STI CLASSIC FUNDS MAY 31, 1996 PRIME QUALITY MONEY MARKET FUND--CONCLUDED - -------------------------------------------------------------------------------- FACE AMOUNT VALUE (000) (000) - -------------------------------------------------------------------------------- CORPORATE OBLIGATIONS--CONTINUED Ford Motor Credit, MTN (C) 5.600%, 05/20/97 $ 2,000 $ 1,999 Ford Motor, Global Note 7.875%, 10/15/96 2,500 2,525 General Electric Capital Callable & Putable 12/15/96 @ 100 7.980%, 12/15/07 5,500 5,582 General Electric Capital, MTN 6.877%, 03/21/97 10,000 10,092 General Electric Capital, MTN (C)(D) 5.390%, 07/26/96 575 575 Household Finance 7.625%, 12/15/96 5,000 5,058 7.500%, 03/15/97 2,800 2,839 Household Finance, MTN 4.551%, 08/16/96 2,521 2,515 International Lease Finance 4.750%, 07/15/96 5,000 4,996 7.900%, 10/01/96 3,675 3,702 6.375%, 11/01/96 7,010 7,030 NationsBank 7.500%, 02/15/97 1,600 1,619 Pacific Gas & Electric, MTN 4.900%, 12/09/96 4,500 4,480 PHH 8.000%, 01/01/97 1,450 1,468 Philip Morris 8.750%, 12/01/96 1,300 1,323 7.500%, 03/15/97 3,255 3,297 9.750%, 05/01/97 1,500 1,550 Society Bank Cleveland 7.125%, 04/15/97 2,000 2,020 Toyota Motor Credit, MTN (C) 5.360%, 06/13/96 16,270 16,269 Virginia Electric & Power 7.250%, 03/01/97 7,000 7,081 Waste Management 7.875%, 08/15/96 3,000 3,013 - -------------------------------------------------------------------------------- FACE AMOUNT VALUE (000) (000) - -------------------------------------------------------------------------------- Xerox Credit, MTN 5.810%, 03/17/97 $18,000 $ 18,016 ---------- Total Corporate Obligations (Cost $245,990,716) 245,991 ---------- U.S. GOVERNMENT AGENCY OBLIGATIONS (3.7%) FHLMC 5.100%, 01/13/97 1,000 1,000 FHLMC Gold Balloon, Pool #M90081 7.000%, 01/15/97 16,546 16,649 FNMA MTN 6.490%, 06/10/98 7,500 7,505 FNMA (C) 5.465%, 09/27/96 6,000 6,001 SLMA (C) 5.370%, 06/02/96 5,000 4,979 5.370%, 12/20/96 10,000 10,000 Tennessee Valley Authority 4.600%, 12/15/96 500 499 ---------- Total U.S. Government Agency Obligations (Cost $46,632,963) 46,633 ---------- U.S. TREASURY OBLIGATION (5.0%) U.S. Treasury Note 6.875%, 02/28/97 62,000 62,776 ---------- Total U.S. Treasury Obligation (Cost $62,775,537) 62,776 ---------- BANK NOTES (1.2%) Comerica Bank of Detroit (C) 5.390%, 12/31/96 10,000 9,990 Huntington National Bank (C) 5.390%, 11/13/96 5,000 5,000 ---------- Total Bank Notes (Cost $14,990,111) 14,990 ---------- 90 ================================================================================ - -------------------------------------------------------------------------------- FACE AMOUNT VALUE (000) (000) - -------------------------------------------------------------------------------- REPURCHASE AGREEMENTS (15.8%) Deutsche Bank 5.33%, dated 05/31/96, matures 06/03/96, repurchase price $131,189,359 (collateralized by FHLB obligation, par value $15,505,000, 0.00%, 07/01/96, various FHLMC obligations, total par value $90,241,632, 0.00%-928.25%, 07/15/07-03/15/24, and various FNMA obligations, par value $117,530,748, 0.00%- 11.198%, 08/25/05-03/25/24: total market value $133,756,481), $131,131 $ 131,131 Swiss Bank 5.33%, dated 05/31/96, matures 06/03/96, repurchase price $26,824,249 (collateralized by U.S. Treasury Bond, par value $21,201,000, 9.875%, 11/15/15: total market value $27,505,870) 26,812 26,812 UBS Securities 5.33%, dated 05/31/96, matures 06/03/96, repurchase price $42,342,759 (collateralized by FHLMC obligation, par value $45,105,000, 7.00%, 12/15/07: total market value $43,595,735) 42,324 42,324 ---------- - -------------------------------------------------------------------------------- VALUE (000) - -------------------------------------------------------------------------------- Total Repurchase Agreements (Cost $200,267,414) $ 200,267 ---------- Total Investments (100.1%) (Cost $1,267,393,255) 1,267,394 ---------- OTHER ASSETS AND LIABILITIES (-0.1%) Total Other Assets and Liabilities, Net (898) ---------- NET ASSETS: Fund shares of the Trust Class (unlimited authorization--no par value) based on 1,051,048,972 outstanding shares of benefical interest 1,051,049 Fund shares of the Investor Class (unlimited authorization--no par value) based on 215,731,965 outstanding shares of beneficial interest 215,732 Accumulated net realized loss on investments (285) ---------- Total Net Assets (100.0%) $1,266,496 ========== Net Asset Value, Offering Price and Redemption Price Per Share-- Trust Shares $ 1.00 ========== Net Asset Value, Offering Price and Redemption Price Per Share-- Investor Shares $ 1.00 ========== THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS. FOR DESCRIPTIONS OF ABBREVIATIONS, PLEASE SEE PAGE 101. 91 STATEMENT OF NET ASSETS ================================================================================ STI CLASSIC FUNDS MAY 31, 1996 U.S. GOVERNMENT SECURITIES MONEY MARKET FUND - -------------------------------------------------------------------------------- FACE AMOUNT VALUE (000) (000) - -------------------------------------------------------------------------------- U.S. TREASURY OBLIGATIONS (35.2%) U.S. Treasury Bills 5.145%, 11/29/96 $25,000 $ 24,353 5.190%, 12/12/96 10,000 9,720 5.400%, 04/03/97 5,000 4,771 U.S. Treasury Notes 6.250%, 08/31/96 10,000 10,018 7.500%, 01/31/97 50,000 50,769 6.875%, 02/28/97 25,000 25,313 6.875%, 03/31/97 10,000 10,103 -------- Total U.S. Treasury Obligations (Cost $135,046,455) 135,047 -------- REPURCHASE AGREEMENTS (64.7%) Barclay's 5.27%, dated 05/31/96, matures 06/03/96, repurchase price $17,009,913 (collateralized by various U.S. Treasury obligations, total par value $69,332,000, 0.00%- 11.25%, 02/15/15-08/15/19: total market value $17,343,717) 17,002 17,002 Deutsche Bank 5.27%, dated 05/31/96, matures 06/03/96, repurchase price $90,221,797 (collateralized by various U.S. Treasury obligations, total par value $87,539,000, 0.00%- 12.00%, 11/21/96-05/15/21: total market value $91,986,687) 90,182 90,182 Merrill Lynch 5.27%, dated 05/31/96, matures 06/03/96, repurchase price $17,012,807 (collateralized by various GNMA obligations, total par value $33,290,000, 6.50%- 9.50%, 08/15/09-05/15/26: total market value $17,349,017) 17,005 17,005 Salomon Brothers 5.27%, dated 05/31/96, matures 06/03/96, repurchase price $16,954,509 (collateralized by various U.S. Treasury obligations, total par value $83,327,000, 5.75%- 9.125%, 10/31/00-05/15/18: total market value $17,317,855) 16,947 16,947 - -------------------------------------------------------------------------------- FACE AMOUNT VALUE (000) (000) - -------------------------------------------------------------------------------- Swiss Bank 5.27%, dated 05/31/96, matures 06/03/96, repurchase price $17,456,231 (collateralized by U.S. Treasury Note, par value $17,364,000, 6.875%, 02/28/97: market value $17,816,219) $17,449 $ 17,449 Union Bank of Switzerland 5.27%, dated 05/31/96, matures 06/03/96, repurchase price $90,158,025 (collateralized by various U.S. Treasury STRIPS, total par value $142,042,000, 02/15/00-11/15/04: total market value $91,921,160) 90,119 90,119 -------- Total Repurchase Agreements (Cost $248,704,059) 248,704 -------- Total Investments (99.9%) (Cost $383,750,514) 383,751 -------- OTHER ASSETS AND LIABILITIES (0.1%) Total Other Assets and Liabilities, Net 350 -------- NET ASSETS: Fund shares of the Trust Class (unlimited authorization --no par value) based on 325,493,550 outstanding shares of benefical interest 325,493 Fund shares of the Investor Class (unlimited authorization--no par value) based on 58,617,308 outstanding shares of beneficial interest 58,617 Accumulated net realized loss on investments (9) -------- Total Net Assets (100.0%) $384,101 ======== Net Asset Value, Offering Price and Redemption Price Per Share-- Trust Shares $ 1.00 ======== Net Asset Value, Offering Price and Redemption Price Per Share-- Investor Shares $ 1.00 ======== THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS. FOR DESCRIPTIONS OF ABBREVIATIONS, PLEASE SEE PAGE 101. 92 ================================================================================ TAX-EXEMPT MONEY MARKET FUND - -------------------------------------------------------------------------------- FACE AMOUNT VALUE (000) (000) - -------------------------------------------------------------------------------- MUNICIPAL BONDS (99.7%) ALABAMA (1.4%) McIntosh, Industrial Development Board, Ciba-Geigy Project, Ser A, VRDN (C)(D)(E) 3.600%, 06/05/96 $3,500 $3,500 Special Care Facilities, Montgomery Hospital Revenue, VRDN (FGIC) (C)(D) 3.500%, 06/05/96 1,600 1,600 -------- Total Alabama 5,100 -------- ALASKA (3.1%) Anchorage, TAN 4.250%, 12/13/96 1,500 1,507 Valolez, TECP (E) 3.400%, 06/18/96 9,900 9,900 -------- Total Alaska 11,407 -------- ARIZONA (4.2%) Cochise County, Electric Power Cooperative Project, RB Putable 09/01/96 @ 100 (C)(D)(E)(F) 3.900%, 09/01/24 2,000 2,000 Maricopa County, Pollution Control Authority, Ser A, VRDN (C)(D)(E) 3.600%, 06/05/96 4,000 4,000 Pima County, Industrial Development Authority, Tucson Electric Project, VRDN (C)(D)(E)(F) 3.750%, 06/05/96 3,400 3,400 Pima County, Industrial Development Authority, Tuscon Electric Project, Ser A, VRDN (C)(D)(E) 3.500%, 06/05/96 6,000 6,000 -------- Total Arizona 15,400 -------- - -------------------------------------------------------------------------------- FACE AMOUNT VALUE (000) (000) - -------------------------------------------------------------------------------- CALIFORNIA (1.7%) Contra Costa County, Multi-Family Mortgage, Delta Square Project, Ser A, VRDN (C)(D)(E) 3.500%, 06/06/96 $4,200 $ 4,200 Higher Education Loan Authority, VRDN (C)(D)(E) 3.600%, 06/05/96 1,900 1,900 -------- Total California 6,100 -------- COLORADO (1.1%) Highlands Ranch, Metropolitan District #2, GO, Pre-Refunded 06/15/96 @ 100 (G) 6.700%, 06/15/01 2,000 2,002 Jefferson County, COP (MBIA) 5.450%, 12/01/96 1,000 1,010 North Glen, Castle Garden Retirement Center, VRDN (C)(D)(E) 3.500%, 06/06/96 1,200 1,200 -------- Total Colorado 4,212 -------- DELAWARE (0.5%) State Educational Development Authority, VRDN (C)(D)(E) 3.875%, 06/06/96 1,875 1,875 -------- FLORIDA (8.5%) Collier County, Housing Finance Authority, VRDN (C)(D)(E) 3.600%, 06/05/96 2,400 2,400 Dade County, Power & Light Project, VRDN (C)(D)(E) 3.600%, 06/03/96 2,200 2,200 Housing Finance Agency, VRDN (C)(D)(E)(F) 3.750%, 06/05/96 8,900 8,900 Housing Finance Agency, Multi-Family Housing, VRDN (C)(D)(E) 3.600%, 06/05/96 4,400 4,400 Jacksonville, TECP (E) 3.150%, 08/09/96 3,000 3,000 93 STATEMENT OF NET ASSETS ================================================================================ STI CLASSIC FUNDS MAY 31, 1996 TAX-EXEMPT MONEY MARKET FUND--CONTINUED - -------------------------------------------------------------------------------- FACE AMOUNT VALUE (000) (000) - -------------------------------------------------------------------------------- FLORIDA--CONTINUED Monroe County, Industrial Development Authority, Beverly Enterprises Project, VRDN (C)(D)(E) 3.600%, 06/05/96 $2,300 $ 2,300 Palm Beach County, Norton Gallery Project, VRDN (C)(D)(E) 3.600%, 06/05/96 3,000 3,000 Saint Lucie County, Pollution Control Board, Power & Light Project, VRDN (C)(D)(E) 3.600%, 06/03/96 5,000 5,000 -------- Total Florida 31,200 -------- GEORGIA (7.4%) Burke County, Development Authority, TECP (E) 3.250%, 06/03/96 4,000 4,000 Cobb County, Industrial Development Authority, VRDN (C)(D)(E) 3.700%, 06/05/96 1,030 1,030 Cobb County, TAN 4.000%, 12/31/96 6,000 6,014 Dekalb County, TRAN 3.750%, 12/31/96 5,000 5,014 Fulton County, Industrial Development Authority, American Red Cross Project, VRDN (C)(D)(E) 3.650%, 06/06/96 1,600 1,600 Fulton County, School District, RB, Pre-Refunded 05/01/97 @ 103 (G) 7.625%, 05/01/17 3,000 3,195 Lafayette, Industrial Development Authority, Blue-Bird Project, Ser 1991, VRDN (C)(D)(E) 3.650%, 06/06/96 1,000 1,000 Monroe County, Industrial Development Authority, Forsyth Inns Project, VRDN (C)(D)(E) 3.700%, 06/05/96 2,525 2,525 - -------------------------------------------------------------------------------- FACE AMOUNT VALUE (000) (000) - -------------------------------------------------------------------------------- GEORGIA--CONTINUED Municipal Electric Authority, VRDN (FGIC) (C)(D) 3.650%, 06/06/96 $3,000 $ 3,000 -------- Total Georgia 27,378 -------- HAWAII (0.8%) State Housing Finance & Development Authority, VRDN (C)(D)(E) 3.800%, 06/05/96 3,000 3,000 -------- IDAHO (0.8%) Nez Pierce County, Pollution Control Board, VRDN (C)(D)(E) 3.550%, 06/05/96 1,000 1,000 Nez Pierce County, Pollution Control Board, Potlatch Corporation Project, VRDN (C)(D)(E) 3.600%, 06/05/96 2,000 2,000 -------- Total Idaho 3,000 -------- ILLINOIS (4.9%) Chicago, Board of Education, COP (E) 3.700%, 12/01/96 3,000 3,000 Cook County, VRDN (C)(D) 3.650%, 06/05/96 4,900 4,900 Decatur, GO (AMBAC) 3.850%, 10/01/96 1,030 1,030 Savanna, Industrial Development Authority, Metform Project, Ser B, VRDN (C)(D)(E) 3.750%, 06/05/96 1,400 1,400 Savanna, Industrial Development Authority, Ser A, VRDN (C)(D)(E) 3.700%, 06/05/96 500 500 State Anti-Pollution Authority, GO 5.250%, 11/01/96 1,400 1,411 94 - -------------------------------------------------------------------------------- FACE AMOUNT VALUE (000) (000) - -------------------------------------------------------------------------------- ILLINOIS--CONTINUED State Health Facilities Authority, University of Chicago Hospital Project, Ser C, VRDN (MBIA) (C)(D) 3.600%, 06/05/96 $4,000 $ 4,000 State Health Facilities Authority, Streeterville Project, VRDN (C)(D)(E) 3.600%, 06/05/96 2,000 2,000 -------- Total Illinois 18,241 -------- INDIANA (2.2%) Allen County, Industrial Economic Development, Mattel Power Wheels Project, VRDN (C)(D)(E)(F) 3.900%, 06/05/96 1,500 1,500 Fort Wayne, Economic Development Authority, ND Tech Project, VRDN (C)(D)(E)(F) 3.700%, 06/05/96 1,000 1,000 Indianapolis, Industrial Economic Development Authority, VRDN (C)(D)(E) 3.750%, 06/05/96 2,000 2,000 Jasper County, Pollution Control Board, Northern Indiana Public Service Project, Ser C, VRDN (C)(D)(E) 3.700%, 06/03/96 2,200 2,200 State Bond Bank Advance Funding Notes (E) 4.250%, 07/08/96 1,250 1,251 -------- Total Indiana 7,951 -------- IOWA (0.7%) West Des Moines, Commercial Development Authority, Greyhound Lines Project, VRDN (C)(D)(E) 3.700%, 06/05/96 2,500 2,500 -------- - -------------------------------------------------------------------------------- FACE AMOUNT VALUE (000) (000) - -------------------------------------------------------------------------------- KANSAS (0.5%) Burlington, Pollution Control Authority, Kansas City Power & Light Project, Ser B, TECP (E) 3.650%, 08/08/96 $2,000 $ 2,000 -------- KENTUCKY (1.2%) Lexington-Fayette Urban County, Government Residential Facilities, Richmond Place Project, RB Mandatory Put 04/01/97 @ 100 (E) 4.500%, 04/01/15 1,000 1,000 Pendleton County, VRDN (C)(D)(E) 3.966%, 07/01/96 1,000 1,000 State League of Cities, VRDN (C)(D)(E) 3.700%, 06/05/96 1,380 1,380 State Turnpike Authority, RB, Pre-Refunded 07/01/96 @ 102 (G) 7.400%, 01/01/97 1,025 1,048 -------- Total Kentucky 4,428 -------- LOUISIANA (2.0%) Lake Charles, Harbor & Terminal District Authority, Reynolds Metals Project, VRDN (C)(D)(E) 3.500%, 06/05/96 3,000 3,000 Port Authority, Occidental Petroleum Project, VRDN (C)(D)(E) 3.600%, 06/05/96 4,500 4,500 -------- Total Louisiana 7,500 -------- MARYLAND (3.5%) Baltimore County, Gas & Electric, TECP (E) 3.200%, 06/04/96 5,000 5,000 Baltimore County, Allied Signal Project, VRDN (C)(D)(E) 3.700%, 06/05/96 1,000 1,000 95 STATEMENT OF NET ASSETS ================================================================================ STI CLASSIC FUNDS MAY 31, 1996 - -------------------------------------------------------------------------------- FACE AMOUNT VALUE (000) (000) - -------------------------------------------------------------------------------- MARYLAND--CONTINUED Health & Higher Education Authority, Pooled Loan Program, Ser B, VRDN (C)(D)(E) 3.700%, 06/05/96 $5,000 $ 5,000 Montgomery County, TECP (E) 3.250%, 06/05/96 2,000 2,000 -------- Total Maryland 13,000 -------- MICHIGAN (4.0%) State Housing Finance Authority, VRDN (C)(D)(E)(F) 3.800%, 06/05/96 1,000 1,000 State Housing Development Authority, VRDN (C)(D)(E) 3.625%, 06/06/96 3,000 3,000 State Industrial Development Authority, VRDN (C)(D)(E) 3.600%, 06/05/96 3,000 3,000 Pollution Control Board, Underground Storage Tanks Project, VRDN (C)(D)(E) 4.000%, 06/05/96 4,900 4,900 State Strategic Fund, Dow Chemical Project, TECP (E) 3.550%, 06/17/96 2,900 2,900 -------- Total Michigan 14,800 -------- MINNESOTA (0.3%) Hennepin County, Waste Treatment Authority, GO 4.400%, 10/01/96 1,000 1,003 -------- MISSISSIPPI (0.6%) State GO 4.500%, 12/01/96 2,300 2,309 -------- MISSOURI (3.8%) Environmental Improvement Authority, RB Putable 06/01/96 @ 100 (E) 4.000%, 06/01/14 1,000 1,000 - -------------------------------------------------------------------------------- FACE AMOUNT VALUE (000) (000) - -------------------------------------------------------------------------------- MISSOURI--CONTINUED Environmental Improvement Authority, Utilicorp United Project, VRDN (C)(D)(E) 3.750%, 06/05/96 $ 700 $ 700 Improvement & Energy Resource Authority, Kansas City Power & Light Project, TECP (E) 3.750%, 11/06/96 5,000 5,000 Industrial Development Authority, Bachman Machine Project, Ser A, VRDN (C)(D)(E)(F) 3.950%, 06/05/96 140 140 Industrial Development Authority, Excelsior Manufacturing Project, Ser B, VRDN (C)(D)(E)(F) 3.950%, 06/05/96 40 40 Industrial Development Authority, Milbank Systems Project, Ser B, VRDN (C)(D)(E)(F) 3.950%, 06/05/96 115 115 Industrial Development Authority, Precision Stainless Project, Ser I, VRDN (C)(D)(E)(F) 3.950%, 06/05/96 80 80 Industrial Development Authority, Plastic Enterprises Project, Ser A, VRDN (C)(D)(E)(F) 3.950%, 06/05/96 415 415 Saint Louis, Industrial Development Authority, Multi-Family Housing, Sugar Pines Apartments Project, VRDN (C)(D)(E) 3.600%, 06/06/96 1,200 1,200 State Custody Receipt, Third Street Building Project, VRDN (C)(D) 3.900%, 06/05/96 2,000 2,000 State Ecomonic Development Authority, Milbank System Project, Ser C, VRDN (C)(D)(E) 3.950%, 06/05/96 200 200 96 ================================================================================ - -------------------------------------------------------------------------------- FACE AMOUNT VALUE (000) (000) - -------------------------------------------------------------------------------- MISSOURI--CONTINUED State Health & Educational Facilities Authority, Sisters of Mercy Health Systems Project, RB 3.600%, 12/01/96 $1,000 $ 1,000 State VRDN 3.650%, 06/06/96 2,125 2,125 -------- Total Missouri 14,015 -------- NEBRASKA (0.6%) Higher Education Authority, Student Loan Program, Ser C, VRDN (SLMA) (C)(D) 3.700%,06/05/96 2,300 2,300 -------- NEVADA (1.4%) Clark County, Nevada Power Project, Ser A, VRDN (C)(D)(E)(F) 3.700%, 06/05/96 5,000 5,000 -------- NEW HAMPSHIRE (2.8%) State Housing Finance Authority, Multi-Family Housing, Fairways Project, VRDN (C)(D)(E) 3.750%, 06/05/96 5,000 5,000 State Housing Finance Authority, Ser A, RB Putable 01/15/97 @ 100 (F) 3.650%, 07/01/26 1,500 1,500 State Pollution Control Authority, VRDN (C)(D)(E) 3.700%, 06/05/96 800 800 State Business Finance Authority, TECP (E) 3.750%, 06/12/96 3,000 3,000 -------- Total New Hampshire 10,300 -------- - -------------------------------------------------------------------------------- FACE AMOUNT VALUE (000) (000) - -------------------------------------------------------------------------------- NEW MEXICO (2.4%) Educational Assistance Foundation, Student Loan Program, VRDN (AMBAC) 3.800%, 06/06/96 $3,950 $ 3,950 Mortgage Finance Authority, Single-Family Mortgage, Ser A, RB Mandatory Put 12/31/96 @ 100 (GNMA) 3.250%, 01/01/28 5,000 4,987 -------- Total New Mexico 8,937 -------- NEW YORK (1.4%) Suffolk County, Ser I, TAN (E) 4.000%, 08/15/96 5,000 5,007 -------- NORTH DAKOTA (1.4%) Mercer County, Solid Waste Disposal Authority, United Power Project, RB Optional Put 12/01/96 @ 100 (F) 3.650%, 12/01/18 5,000 5,000 -------- OHIO (1.6%) State Air Quality Development Authority, JMG Limited Partnership, Ser A, VRDN (C)(D)(E)(F) 3.600%, 06/05/96 3,000 3,000 State Pollution Control Authority, Duquesne Project, VRDN (C)(D)(E) 3.750%, 06/05/96 3,000 3,000 -------- Total Ohio 6,000 -------- OREGON (0.3%) State Housing & Community Services, Single-Family Mortgage Program, Ser C, RB (F) 3.850%, 05/15/97 1,000 1,000 -------- 97 STATEMENT OF NET ASSETS ================================================================================ STI CLASSIC FUNDS MAY 31, 1996 TAX-EXEMPT MONEY MARKET FUND--CONTINUED - -------------------------------------------------------------------------------- FACE AMOUNT VALUE (000) (000) - -------------------------------------------------------------------------------- PENNSYLVANIA (6.5%) Allegheny County Health Center Development Ser B, TECP (E) 3.700%, 06/10/96 $5,000 $ 5,000 Beaver County, Industrial Development Authority, Duquesne Light Company Project, Ser B, VRDN (C)(D)(E) 3.650%, 06/05/96 1,000 1,000 Delaware County, Industrial Development Authority, Philadelphia Electric Project, Ser C, TECP (FGIC) 3.250%, 06/05/96 6,000 6,000 Philadelphia School District, Ser 1995, TRAN 4.500%, 06/28/96 3,000 3,001 Philadelphia, Ser A, TRAN 4.500%, 06/27/96 4,000 4,002 State TAN 4.500%, 06/28/96 5,000 5,003 -------- Total Pennsylvania 24,006 -------- RHODE ISLAND (3.0%) State TAN (E) 4.500%, 06/28/96 5,000 5,003 Student Loan Authority, VRDN (C)(D)(E)(F) 3.650%, 06/05/96 6,000 6,000 -------- Total Rhode Island 11,003 -------- SOUTH CAROLINA (1.4%) State Public Service Authority, Ser C, RB 3.800%, 01/01/97 2,000 2,006 York County, Pollution Control Authority, North Carolina Electric Power Project, Ser N-5, VRDN (C)(D)(E) 3.250%, 09/15/96 3,000 3,000 -------- Total South Carolina 5,006 -------- - -------------------------------------------------------------------------------- FACE AMOUNT VALUE (000) (000) - -------------------------------------------------------------------------------- TENNESSEE (4.0%) Covington, Industrial Development Board, Charms Project, VRDN (C)(D)(E) 3.700%, 06/05/96 $3,000 $ 3,000 Hamilton County, Industrial Development Board, Tennessee Aquarium Project, VRDN (C)(D)(E) 3.650%, 06/06/96 3,000 3,000 Memphis-Shelby County, Industrial Development Board, Ponderosa Fibres American Project, VRDN (C)(D)(E) 3.800%, 06/06/96 1,800 1,800 Nashville & Davidson County, Government Health & Education Authority, Vanderbilt University Project, Ser B, VRDN (C)(D) 3.700%, 05/01/97 1,400 1,400 Nashville & Davidson County, Industrial Development Authority, Multi-Family Mortgage, Chimneytop II Project, VRDN (C)(D)(E) 3.700%, 06/05/96 1,325 1,325 State School Board Authority, VRDN (C)(D) 3.600%, 06/05/96 750 750 State School Board Authority, Ser B, BAN, VRDN (C)(D) 3.600%, 06/05/96 1,400 1,400 State School Board Authority, VRDN (C)(D) 3.600%, 06/05/96 2,200 2,200 -------- Total Tennessee 14,875 -------- 98 ================================================================================ - -------------------------------------------------------------------------------- FACE AMOUNT VALUE (000) (000) - -------------------------------------------------------------------------------- TEXAS (7.9%) Brazos River, TECP (E)(F) 3.700%, 08/08/96 $2,790 $ 2,790 Brazos River, Dow Chemical Project, TECP (E) 3.450%, 08/23/96 2,700 2,700 Harris County, Health Facility Authority, TECP (E) 3.200%, 06/10/96 3,000 3,000 Harris County, Industrial Development Authority, Lubrizol Project, VRDN (C)(D)(E) 3.600%, 06/05/96 1,600 1,600 Harris County, Toll Roads, Ser H, VRDN (C)(D) 3.600%, 06/05/96 5,500 5,500 Harris County, Housing Finance Corporation, Ser 1985, VRDN (C)(D)(E) 3.875%, 06/06/96 1,000 1,000 Houston, TECP (E) 3.250%, 06/11/96 5,000 5,000 Lone Star, Airport Improvement, VRDN (C)(D) 3.650%, 06/03/96 1,700 1,700 State Public Finance Authority, Ser C, GO 6.400%, 10/01/96 1,000 1,009 State TAN (E) 4.750%, 08/30/96 5,000 5,008 -------- Total Texas 29,307 -------- UTAH (4.3%) Davis County, School District, TAN 4.250%, 06/28/96 6,500 6,502 Salt Lake County, Solid Waste Disposal Authority, Kennecott Copper Project, Ser A, VRDN (C)(D)(E)(F) 3.800%, 06/05/96 6,400 6,400 - -------------------------------------------------------------------------------- FACE AMOUNT VALUE (000) (000) - -------------------------------------------------------------------------------- Tooele County, Hazardous Waste Treatment, Westinghouse Project, Ser A, TECP (E) 3.650%, 07/23/96 $3,000 $ 3,000 -------- Total Utah 15,902 -------- VERMONT (2.7%) State TECP (E) 3.400%, 06/14/96 10,000 10,000 -------- VIRGINIA (2.4%) Chesterfield County, Industrial Development Authority, Allied Signal Project, VRDN (C)(D)(E) 3.750%, 06/05/96 3,000 3,000 Commonwealth, Ser 1994, VRDN (C)(D) 3.750%, 06/06/96 3,000 3,000 Front Royal & Warren County, Industrial Development Authority, Pen Tab Industries Project, VRDN (C)(D)(E)(F) 3.900%, 06/06/96 3,000 3,000 -------- Total Virginia 9,000 -------- WASHINGTON (0.5%) Port of Seattle, VRDN (C)(D) 3.500%, 06/05/96 1,800 1,800 -------- WEST VIRGINIA (1.1%) Marshall County, Pollution Control Authority, Allied Signal Project, VRDN (C)(D)(E) 3.750%, 06/05/96 2,000 2,000 Marshall County, PPG Industries Project, VRDN (C)(D)(E) 3.800%, 06/06/96 2,000 2,000 -------- Total West Virginia 4,000 -------- 99 STATEMENT OF NET ASSETS ================================================================================ STI CLASSIC FUNDS MAY 31, 1996 TAX-EXEMPT MONEY MARKET FUND--CONCLUDED - -------------------------------------------------------------------------------- FACE AMOUNT VALUE (000) (000) - -------------------------------------------------------------------------------- WISCONSIN (0.8%) State VRDN (C)(D) 3.600%, 06/06/96 $3,000 $ 3,000 -------- Total Municipal Bonds (Cost $367,861,479) 367,862 -------- CASH EQUIVALENT (1.1%) SEI Tax-Exempt Trust Institutional Tax-Free Portfolio 3,966 3,966 -------- Total Cash Equivalent (Cost $3,965,853) 3,966 -------- Total Investments (100.8%) (Cost $371,827,332) 371,828 -------- OTHER ASSETS AND LIABILITIES (-0.8%) Total Other Assets and Liabilities, Net (2,992) -------- - -------------------------------------------------------------------------------- VALUE (000) - -------------------------------------------------------------------------------- NET ASSETS: Fund shares of the Trust Class (unlimited authorization --no par value) based on 273,619,007 outstanding shares of benefical interest $273,619 Fund shares of the Investor Class (unlimited authorization--no par value) based on 95,230,640 outstanding shares of beneficial interest 95,231 Accumulated net realized loss on investments (14) -------- Total Net Assets (100.0%) $368,836 ======== Net Asset Value, Offering Price and Redemption Price Per Share-- Trust Shares $ 1.00 ======== Net Asset Value, Offering Price and Redemption Price Per Share-- Investor Shares $ 1.00 ======== THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS. FOR DESCRIPTIONS OF ABBREVIATIONS, PLEASE SEE PAGE 101. 100 STATEMENT OF NET ASSETS ================================================================================ STI CLASSIC FUNDS MAY 31, 1996 KEY TO ABBREVIATIONS USED IN THE STATEMENT OF NET ASSETS ADR American Depository Receipt AMBAC Security insured by the American Municipal Bond Assurance Company ARM Adjustable Rate Mortgage BAN Bond Anticipation Note Cl Class CMO Collateralized Mortgage Obligation COP Certificate of Participation CV Convertible Security ETM Escrowed to Maturity F Foreign Registry Shares FGIC Security insured by the Financial Guaranty Insurance Corporation FHLB Federal Home Loan Bank FHLMC Federal Home Loan Mortgage Corporation FNMA Federal National Mortgage Association FSA Security insured by Financial Security Assurance GDR Global Depository Receipt GECC General Electric Capital Corporation GMAC General Motors Acceptance Corporation GNMA Government National Mortgage Association GO General Obligation MBIA Security insured by the Municipal Bond Insurance Association MTN Medium Term Note PSFG Permanent School Fund Guarantee RB Revenue Bond REIT Real Estate Investment Trust REMIC Real Estate Mortgage Investment Conduit Ser Series SLMA Student Loan Marketing Association STRIPS Separately Traded Registered Interest and Principal Security TAN Tax Anticipation Note TECP Tax Exempt Commercial Paper TRAN Tax & Revenue Anticipation Note VRDN Variable Rate Demand Note * Non-income producing securities (A) Zero Coupon Bond (B) Private Placement Security (C) Variable rate security. The rate reported on the Statement of Net Assets is the rate in effect on May 31, 1996 (D) Put and demand features exist requiring the issuer to repurchase the instrument prior to maturity (E) Securities are held in connection with a letter of credit issued by a major bank (F) Income on security may be subject to the Alternative Minimum Tax (G) Collateralized by U.S. Government Securities 101 [THIS PAGE INTENTIONALLY LEFT BLANK] 102 STATEMENT OF ASSETS AND LIABILITIES (000) ================================================================================ STI CLASSIC FUNDS FOR THE YEAR ENDED MAY 31, 1996
---------- ---------- ---------- INTERNATIONAL INVESTMENT FLORIDA EQUITY GRADE TAX-EXEMPT TAX-EXEMPT FUND BOND FUND BOND FUND ---------- ---------- ---------- Assets: Investments at Market Value (Cost $194,622,776, $158,665,690, $36,007,283, respectively) .................... $208,240 $157,970 $ 35,650 Cash and Foreign Currency ......................................................... 12,765 -- -- Receivables for Investment Securities Sold ........................................ -- 6,359 -- Receivables for Capital Shares Sold ............................................... 493 5,660 1,459 Other Assets ...................................................................... 622 2,546 578 -------- -------- -------- Total Assets ...................................................................... 222,120 172,535 37,687 -------- -------- -------- Liabilities: Payables for Investment Securities Purchased ...................................... 3,488 3,970 -- Payables for Capital Shares Repurchased ........................................... 512 285 -- Accrued Expenses .................................................................. 413 177 43 Distribution Payable .............................................................. -- 535 137 Other Liabilities ................................................................. -- 98 -- -------- -------- -------- Total Liabilities ................................................................. 4,413 5,065 180 -------- -------- -------- Net Assets: Fund Shares of the Trust Shares (Unlimited Authorization -- No Par Value) Based on 18,703,354, 11,214,957, 3,059,386, respectively Outstanding Shares of Beneficial Interest .......................................................... 195,165 123,950 31,003 Fund Shares of the Investor Shares (Unlimited Authorization -- No Par Value) Based on 302,894, 3,367,080, 399,731, respectively Outstanding Shares of Beneficial Interest .......................................................... 3,247 36,440 3,971 Fund Shares of the Flex Shares (Unlimited Authorization -- No Par Value) Based on 83,847, 498,358, 267,043, respectively Outstanding Shares of Beneficial Interest .......................................................... 908 5,632 2,741 Undistributed Net Investment Income ............................................... 986 2 4 Accumulated Net Realized Gain on Investments ...................................... 4,059 2,142 145 Accumulated Net Realized Loss on Foreign Currency Transactions .................... (265) -- -- Net Unrealized Appreciation (Depreciation) on Investments ......................... 13,617 (696) (357) Net Unrealized Depreciation on Foreign Currency and Translation of Other Assets and Liabilities in Foreign Currency ................. (10) -- -- -------- -------- -------- Total Net Assets .................................................................. $217,707 $167,470 $ 37,507 ======== ======== ======== Net Asset Value, Offering Price and Redemption Price Per Share -- Trust Shares ....... $ 11.40 $ 11.10 $ 10.06 ======== ======== ======== Net Asset Value and Redemption Price Per Share -- Investor Shares .................... $ 11.38 $ 11.12 $ 10.07 ======== ======== ======== Maximum Public Offering Price Per Share -- Investor Shares ($11.38 (DIVIDE) 96.25%), ($11.12 (DIVIDE) 96.25%), ($10.07 (DIVIDE) 96.25%) ................................ $ 11.82 $ 11.55 $ 10.46 ======== ======== ======== Net Asset Value,Offering and Redemption Price Per Share-- Flex Shares (1) ............ $ 11.37 $ 11.11 $ 10.08 ======== ======== ======== (1) Flex Class has a contingent deferred sales charge. For a description of a possible sales charge, see notes to the Financial Statements
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS. 103 STATEMENT OF OPERATIONS (000) ================================================================================ STI CLASSIC FUNDS FOR THE PERIOD ENDED MAY 31, 1996
MID-CAP CAPITAL INTERNATIONAL VALUE INCOME EQUITY GROWTH BALANCED EQUITY STOCK FUND FUND FUND FUND INDEX FUND --------- --------- --------- --------- ---------- 06/01/95- 06/01/95- 06/01/95- 06/01/95- 06/01/95- 05/31/96 05/31/96 05/31/96 05/31/96 05/31/96 --------- --------- --------- --------- ---------- Income: Interest Income ......................................... $ 4,145 $ 1,718 $ 4,354 $ 3,136 $ 34 Dividend Income ......................................... 40,342 2,105 19,620 972 2,008 Less Foreign Taxes Withheld ............................. -- -- -- -- (182) -------- ------- -------- ------- ------ Total Investment Income ................................. 44,487 3,823 23,974 4,108 1,860 -------- ------- -------- ------- ------ Expenses: Investment Advisory Fees ................................ 9,448 2,377 13,507 990 885 Investment Advisory Fees Waived ......................... -- (319) (1,409) (166) (144) Contribution from Advisor ............................... -- -- -- -- -- Administrator Fees ...................................... 846 148 842 75 71 Transfer Agent Fees-- Trust Class of Shares ............. 14 15 10 15 15 Transfer Agent Fees-- Investor Class of Shares .......... 131 31 218 23 24 Transfer Agent Fees-- Flex Class of Shares .............. 26 16 19 13 13 Transfer Agent Out of Pocket Fees ....................... 74 16 95 8 10 Printing Expenses ....................................... 99 22 109 10 10 Custody Fees ............................................ 43 9 48 3 132 Professional Fees ....................................... 76 19 90 9 8 Trustee Fees ............................................ 18 3 22 2 2 Registration Fees ....................................... 144 51 132 12 4 Distribution Fees-- Investor Class of Shares ............ 363 55 1,188 12 18 Distribution Fees Waived-- Investor Class of Shares ..... (60) (4) (275) (1) (18) Distribution Fees-- Flex Class of Shares ................ 116 22 49 16 6 Distribution Fees Waived-- Flex Class of Shares ......... (17) (12) (12) (9) (6) Insurance and Other Fees ................................ 52 6 53 5 22 Amortization of Deferred Organization Costs ............. 13 3 10 3 8 -------- ------- -------- ------- ------ Total Expenses .......................................... 11,386 2,458 14,696 1,020 1,060 -------- ------- -------- ------- ------ Net Investment Income (Loss) ............................ 33,101 1,365 9,278 3,088 800 -------- ------- -------- ------- ------ Net Realized and Unrealized Gain (Loss) on Investments: Net Realized Gain on Securities Sold .................... 196,134 29,513 224,050 11,091 1,134 Net Realized Loss on Foreign Currency Transactions ...... -- -- -- -- -- Net Change in Unrealized Depreciation on Foreign Currency and Translation of Other Assets and Liabilities in Foreign Currency ...................................... -- -- -- -- (7) Net Change in Unrealized Appreciation (Depreciation) on Investments ........................................ 60,796 12,518 63,301 1,891 6,362 -------- ------- -------- ------- ------ Net Increase in Net Assets from Operations .............. $290,031 $43,396 $296,629 $16,070 $8,289 ======== ======= ======== ======= ====== *Commencement of operations Amounts designated as "--" are either $0 or round to $0.
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INTERNATIONAL INVESTMENT GRADE FLORIDA TENNESSEE EQUITY SUNBELT TAX-EXEMPT TAX-EXEMPT TAX-EXEMPT FUND EQUITY FUND BOND FUND BOND FUND BOND FUND ---------- --------- --------- --------- --------- 12/01/95*- 06/01/95- 06/01/95- 06/01/95- 06/01/95- 05/31/96 05/31/96 05/31/96 05/31/96 05/31/96 ---------- --------- --------- --------- --------- Income: Interest Income ......................................... $ 192 $ 443 $7,184 $1,438 $226 Dividend Income ......................................... 2,079 2,293 -- -- -- Less Foreign Taxes Withheld ............................. (235) -- -- -- -- ------- -------- ------ ------ ---- Total Investment Income ................................. 2,036 2,736 7,184 1,438 226 ------- -------- ------ ------ ---- Expenses: Investment Advisory Fees ................................ 899 3,890 1,120 182 29 Investment Advisory Fees Waived ......................... (152) (465) (204) (76) (29) Contribution from Advisor ............................... -- -- -- -- (18) Administrator Fees ...................................... 50 242 108 20 3 Transfer Agent Fees-- Trust Class of Shares ............. 7 15 15 16 16 Transfer Agent Fees-- Investor Class of Shares .......... 9 58 45 15 14 Transfer Agent Fees-- Flex Class of Shares .............. 6 13 14 13 12 Transfer Agent Out of Pocket Fees ....................... 6 26 14 3 2 Printing Expenses ....................................... 9 34 15 4 -- Custody Fees ............................................ 113 14 6 1 -- Professional Fees ....................................... 10 28 13 3 1 Trustee Fees ............................................ 1 5 2 1 -- Registration Fees ....................................... 83 30 30 10 1 Distribution Fees-- Investor Class of Shares ............ 3 107 175 7 2 Distribution Fees Waived-- Investor Class of Shares ..... (3) (7) (61) (1) (1) Distribution Fees-- Flex Class of Shares ................ 2 10 39 17 14 Distribution Fees Waived-- Flex Class of Shares ......... (2) (9) (17) (14) (5) Insurance and Other Fees ................................ 8 17 9 1 -- Amortization of Deferred Organization Costs ............. 1 3 10 1 -- ------- -------- ------ ------ ---- Total Expenses .......................................... 1,050 4,011 1,333 203 41 ------- -------- ------ ------ ---- Net Investment Income (Loss) ............................ 986 (1,275) 5,851 1,235 185 ------- -------- ------ ------ ---- Net Realized and Unrealized Gain (Loss) on Investments: Net Realized Gain on Securities Sold .................... 4,059 39,898 5,634 220 13 Net Realized Loss on Foreign Currency Transactions ...... (265) -- -- -- -- Net Change in Unrealized Depreciation on Foreign Currency and Translation of Other Assets and Liabilities in Foreign Currency ...................................... (10) -- -- -- -- Net Change in Unrealized Appreciation (Depreciation) on Investments ........................................ 13,617 84,777 (3,672) (723) (96) ------- -------- ------ ------ ---- Net Increase in Net Assets from Operations .............. $18,387 $123,400 $7,813 $ 732 $102 ======= ======== ====== ====== ====
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS. 105 STATEMENT OF OPERATIONS (000) (concluded) ================================================================================ STI CLASSIC FUNDS FOR THE PERIOD ENDED MAY 31, 1996
SHORT-TERM GEORGIA INVESTMENT U.S. TREASURY LIMITED-TERM TAX-EXEMPT GRADE BOND SHORT-TERM SECURITIES FEDERAL MORTGAGE BOND FUND FUND BOND FUND FUND SECURITIES FUND ---------- ---------- ---------- ------------- ---------------- 06/01/95- 06/01/95- 06/01/95- 06/01/95- 06/01/95- 05/31/96 05/31/96 05/31/96 05/31/96 05/31/96 --------- --------- --------- --------- --------- Income: Interest Income ...................................... $1,144 $40,504 $4,745 $1,037 $ 3,533 Dividend Income ...................................... -- -- -- -- -- ------ ------- ------ ------ ------- Total Investment Income .............................. 1,144 40,504 4,745 1,037 3,533 ------ ------- ------ ------ ------- Expenses: Investment Advisory Fees ............................. 149 4,580 512 109 344 Investment Advisory Fees Waived ...................... (65) (711) (150) (72) (119) Administrator Fees ................................... 16 444 56 12 38 Administrator Fees Waived ............................ -- -- -- -- -- Transfer Agent Fees-- Trust Class of Shares .......... 16 15 14 16 13 Transfer Agent Fees-- Investor Class of Shares ....... 15 54 18 17 14 Transfer Agent Fees-- Flex Class of Shares ........... 13 14 12 12 12 Transfer Agent Out of Pocket Fees .................... 3 46 7 3 8 Printing Expenses .................................... 3 58 8 2 5 Custody Fees ......................................... 1 26 3 -- 2 Professional Fees .................................... 2 51 7 1 6 Trustee Fees ......................................... -- 9 1 -- 1 Registration Fees .................................... 7 98 16 6 13 Distribution Fees-- Investor Class of Shares ......... 6 152 6 10 3 Distribution Fees Waived-- Investor Class of Shares .. (1) (73) (1) (2) (1) Distribution Fees-- Flex Class of Shares ............. 24 24 6 12 7 Distribution Fees Waived-- Flex Class of Shares ...... (17) (15) (6) (12) (7) Insurance and Other Fees ............................. 1 28 4 -- 2 Amortization of Deferred Organization Costs .......... -- 10 8 8 11 ------ ------- ------ ------ ------- Total Expenses ....................................... 173 4,810 521 122 352 ------ ------- ------ ------ ------- Net Investment Income ................................... 971 35,694 4,224 915 3,181 ------ ------- ------ ------ ------- Net Realized and Unrealized Gain (Loss) on Investments Net Realized Gain (Loss) on Securities Sold .......... 330 19,716 1,358 95 389 Net Change in Unrealized Depreciation on Investments ..................................... (789) (32,383) (2,395) (294) (1,359) ------ ------- ------ ------ ------- Net Increase in Net Assets from Operations .............. $ 512 $23,027 $3,187 $ 716 $ 2,211 ====== ======= ====== ====== ======= Amounts designated as "--" are either $0 or round to $0.
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TAX-EXEMPT U.S. PRIME QUALITY U.S. GOVERNMENT MONEY GOVERNMENT MONEY MARKET SECURITIES MONEY MARKET SECURITIES FUND FUND MARKET FUND FUND --------------- ------------- ---------------- ---------- 06/01/95- 06/01/95- 06/01/95- 06/01/95- 05/31/96 05/31/96 05/31/96 05/31/96 --------- --------- --------- --------- Income: Interest Income ...................................... $698 $60,664 $22,883 $14,248 Dividend Income ...................................... -- -- -- -- ---- ------- ------- ------- Total Investment Income .............................. 698 60,664 22,883 14,248 ---- ------- ------- ------- Expenses: Investment Advisory Fees ............................. 76 6,950 2,646 2,108 Investment Advisory Fees Waived ...................... (60) (1,603) (578) (685) Administrator Fees ................................... 7 765 292 275 Administrator Fees Waived ............................ -- (450) (73) -- Transfer Agent Fees-- Trust Class of Shares .......... 16 16 16 16 Transfer Agent Fees-- Investor Class of Shares ....... 13 48 29 25 Transfer Agent Fees-- Flex Class of Shares ........... 14 -- -- -- Transfer Agent Out of Pocket Fees .................... 3 70 27 25 Printing Expenses .................................... 1 95 38 38 Custody Fees ......................................... -- 43 18 17 Professional Fees .................................... 1 83 30 32 Trustee Fees ......................................... -- 14 3 6 Registration Fees .................................... 6 200 63 72 Distribution Fees-- Investor Class of Shares ......... 5 382 97 139 Distribution Fees Waived-- Investor Class of Shares .. (1) (108) (53) (59) Distribution Fees-- Flex Class of Shares ............. 16 -- -- -- Distribution Fees Waived-- Flex Class of Shares ...... (12) -- -- -- Insurance and Other Fees ............................. 1 17 7 12 Amortization of Deferred Organization Costs .......... 10 10 10 10 ---- ------- ------- ------- Total Expenses ....................................... 96 6,532 2,572 2,031 ---- ------- ------- ------- Net Investment Income ................................... 602 54,132 20,311 12,217 ---- ------- ------- ------- Net Realized and Unrealized Gain (Loss) on Investments Net Realized Gain (Loss) on Securities Sold .......... (24) (82) 90 9 Net Change in Unrealized Depreciation on Investments ..................................... (557) -- -- -- ---- ------- ------- ------- Net Increase in Net Assets from Operations .............. $ 21 $54,050 $20,401 $12,226 ==== ======= ======= =======
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS. 107 STATEMENT OF CHANGES IN NET ASSETS (000) ================================================================================ STI CLASSIC FUNDS FOR THE PERIOD ENDED MAY 31, 1996
VALUE INCOME MID-CAP EQUITY STOCK FUND FUND CAPITAL GROWTH FUND BALANCED FUND ---------------------- ------------------- --------------------- -------------------- 06/01/95- 06/01/94- 06/01/95- 06/01/94- 06/01/95- 06/01/94- 06/01/95- 06/01/94- 05/31/96 05/31/95 05/31/96 05/31/95 05/31/96 05/31/95 05/31/96 05/31/95 ---------- ---------- -------- --------- --------- --------- --------- -------- Operations: Net Investment Income .................. $ 33,101 $ 27,417 $ 1,365 $ 848 $ 9,278 $ 13,878 $ 3,088 $ 2,894 Net Realized Gain (Loss) on Investments 196,134 63,692 29,513 3,443 224,050 (25,085) 11,091 (2,649) Net Realized Gain (Loss) on Foreign Currency Transactions ................ -- -- -- -- -- -- -- -- Net Change in Unrealized Appreciation (Depreciation) on Foreign Currency and Translation of Other Assets and Liabilities in Foreign Currency ...... -- -- -- -- -- -- -- -- Net Change in Unrealized Appreciation (Depreciation) on Investments ........ 60,796 72,296 12,518 9,545 63,301 81,722 1,891 7,258 ---------- ---------- -------- -------- ---------- ---------- -------- -------- Increase in Net Assets from Operations 290,031 163,405 43,396 13,836 296,629 70,515 16,070 7,503 ---------- ---------- -------- -------- ---------- ---------- -------- -------- Distributions to Shareholders: Net Investment Income: Trust Shares ......................... (29,124) (23,754) (1,285) (718) (9,644) (11,234) (2,933) (2,702) Investor Shares ...................... (2,618) (1,920) (30) (14) (570) (928) (115) (97) Flex Shares .......................... (206) -- (1) -- (5) -- (31) -- Capital Gains: Trust Shares ......................... (92,363) (38,976) (13,072) -- (41,659) (30,893) (904) -- Investor Shares ...................... (9,853) (3,570) (922) -- (7,343) (5,364) (44) -- Flex Shares .......................... (1,106) -- (167) -- (227) -- (18) -- ---------- ---------- -------- -------- ---------- ---------- -------- -------- Total Distributions .................... (135,270) (68,220) (15,477) (732) (59,448) (48,419) (4,045) (2,799) ---------- ---------- -------- -------- ---------- ---------- -------- -------- Capital Transactions (1): Trust Shares: Proceeds from Shares Issued .......... 371,542 468,283 133,402 86,594 187,108 394,468 54,735 44,516 Reinvestment of Cash Distributions ... 111,671 58,468 13,361 546 48,431 40,271 3,784 2,692 Cost of Shares Repurchased ........... (369,739) (195,046) (44,487) (31,035) (439,271) (362,047) (47,301) (53,242) ---------- ---------- -------- -------- ---------- ---------- -------- -------- Increase (Decrease) in Net Assets From Trust Share Transactions ........ 113,474 331,705 102,276 56,105 (203,732) 72,692 11,218 (6,034) ---------- ---------- -------- -------- ---------- ---------- -------- -------- Investor Shares: Proceeds from Shares Issued .......... 31,177 32,292 10,027 4,519 21,971 25,080 1,315 2,054 Reinvestment of Cash Distributions ... 12,291 5,319 948 14 7,818 6,057 155 93 Cost of Shares Repurchased ........... (19,420) (13,939) (2,010) (875) (34,867) (43,510) (844) (891) ---------- ---------- -------- -------- ---------- ---------- -------- -------- Increase (Decrease) in Net Assets From Investor Share Transactions ... 24,048 23,672 8,965 3,658 (5,078) (12,373) 626 1,256 ---------- ---------- -------- -------- ---------- ---------- -------- -------- Flex Shares: Proceeds from Shares Issued .......... 24,893 -- 5,125 -- 10,505 -- 3,359 -- Reinvestment of Cash Distributions ... 1,301 -- 163 -- 230 -- 49 -- Cost of Shares Repurchased ........... (1,416) -- (450) -- (641) -- (428) -- ---------- ---------- -------- -------- ---------- ---------- -------- -------- Increase in Net Assets From Flex Share Transactions ................... 24,778 -- 4,838 -- 10,094 -- 2,980 -- ---------- ---------- -------- -------- ---------- ---------- -------- -------- Increase (Decrease) in Net Assets From Share Transactions ............ 162,300 355,377 116,079 59,763 (198,716) 60,319 14,824 (4,778) ---------- ---------- -------- -------- ---------- ---------- -------- -------- Total Increase (Decrease) in Net Assets ....................... 317,061 450,562 143,998 72,867 38,465 82,415 26,849 (74) ---------- ---------- -------- -------- ---------- ---------- -------- -------- Net Assets: Beginning of Period .................... 1,084,233 633,671 132,907 60,040 1,145,080 1,062,665 92,816 92,890 ---------- ---------- -------- -------- ---------- ---------- -------- -------- End of Period .......................... $1,401,294 $1,084,233 $276,905 $132,907 $1,183,545 $1,145,080 $119,665 $ 92,816 ========== ========== ======== ======== ========== ========== ======== ======== Shares Issued and Redeemed(1): Trust Shares: Shares Issued ........................ 29,898 43,588 10,952 8,666 13,624 33,987 4,974 4,636 Shares Issued in Lieu of Cash Distributions ...................... 9,282 5,715 1,144 54 3,617 3,668 346 283 Shares Redeemed ...................... (30,154) (18,063) (3,620) (3,090) (32,204) (31,242) (4,335) (5,520) ---------- ---------- -------- -------- ---------- ---------- -------- -------- Net Trust Share Transactions ........... 9,026 31,240 8,476 5,630 (14,963) 6,413 985 (601) ---------- ---------- -------- -------- ---------- ---------- -------- -------- Investor Shares: Shares Issued ........................ 2,522 2,985 824 448 1,605 2,153 119 212 Shares Issued in Lieu of Cash Distributions ...................... 1,023 521 82 1 585 555 14 10 Shares Redeemed ...................... (1,569) (1,297) (165) (86) (2,576) (3,751) (76) (92) ---------- ---------- -------- -------- ---------- ---------- -------- -------- Net Investor Share Transactions ........ 1,976 2,209 741 363 (386) (1,043) 57 130 ---------- ---------- -------- -------- ---------- ---------- -------- -------- Flex Shares: Shares Issued ........................ 2,014 -- 419 -- 768 -- 305 -- Shares Issued in Lieu of Cash Distributions ...................... 108 -- 14 -- 17 -- 5 -- Shares Redeemed ...................... (113) -- (37) -- (46) -- (38) -- ---------- ---------- -------- -------- ---------- ---------- -------- -------- Net Flex Share Transactions ............ 2,009 -- 396 -- 739 -- 272 -- ========== ========== ======== ======== ========== ========== ======== ======== *Commencement of operations. Amounts designated as "--" are either $0 or round to $0.
108
INTERNATIONAL INTERNATIONAL EQUITY EQUITY INDEX FUND FUND SUNBELT EQUITY FUND -------------------- ---------- --------------------- 06/01/95- 06/06/94-* 12/01/95-* 06/01/95- 01/03/94-* 5/31/96 05/31/95 05/31/96 05/31/96 05/31/95 -------- ---------- ---------- --------- ---------- Operations: Net Investment Income .................. $ 800 $ 583 $ 986 $ (1,275) $ (390) Net Realized Gain (Loss) on Investments 1,134 28 4,059 39,898 (10,446) Net Realized Gain (Loss) on Foreign Currency Transactions ................ -- 42 (265) -- -- Net Change in Unrealized Appreciation (Depreciation) on Foreign Currency and Translation of Other Assets and Liabilities in Foreign Currency ...... (7) 3 (10) -- -- Net Change in Unrealized Appreciation (Depreciation) on Investments ........ 6,362 2,605 13,617 84,777 20,987 ------- ------- -------- -------- -------- Increase in Net Assets from Operations 8,289 3,261 18,387 123,400 10,151 ------- ------- -------- -------- -------- Distributions to Shareholders: Net Investment Income: Trust Shares ......................... (1,048) (143) -- -- -- Investor Shares ...................... (59) (4) -- -- -- Flex Shares .......................... (7) -- -- -- -- Capital Gains: Trust Shares ......................... (743) (31) -- (5,188) (999) Investor Shares ...................... (43) (2) -- (426) (89) Flex Shares .......................... (6) -- -- (20) -- ------- ------- -------- -------- -------- Total Distributions .................... (1,906) (180) -- (5,634) (1,088) ------- ------- -------- -------- -------- Capital Transactions (1): Trust Shares: Proceeds from Shares Issued .......... 62,965 96,472 212,805 132,237 168,189 Reinvestment of Cash Distributions ... 1,417 115 -- 4,956 948 Cost of Shares Repurchased ........... (68,891) (10,101) (17,640) (92,700) (46,896) ------- ------- -------- -------- -------- Increase (Decrease) in Net Assets From Trust Share Transactions ........ (4,509) 86,486 195,165 44,493 122,241 ------- ------- -------- -------- -------- Investor Shares: Proceeds from Shares Issued .......... 3,017 4,324 3,467 5,187 10,546 Reinvestment of Cash Distributions ... 101 5 -- 426 89 Cost of Shares Repurchased ........... (1,782) (490) (220) (7,209) (5,208) ------- ------- -------- -------- -------- Increase (Decrease) in Net Assets From Investor Share Transactions ... 1,336 3,839 3,247 (1,596) 5,427 ------- ------- -------- -------- -------- Flex Shares: Proceeds from Shares Issued .......... 992 -- 911 2,489 -- Reinvestment of Cash Distributions ... 13 -- -- 20 -- Cost of Shares Repurchased ........... (127) -- (3) (123) -- ------- ------- -------- -------- -------- Increase in Net Assets From Flex Share Transactions ................... 878 -- 908 2,386 -- ------- ------- -------- -------- -------- Increase (Decrease) in Net Assets From Share Transactions ............ (2,295) 90,325 199,320 45,283 127,668 ------- ------- -------- -------- -------- Total Increase (Decrease) in Net Assets ....................... 4,088 93,406 217,707 163,049 136,731 ------- ------- -------- -------- -------- Net Assets: Beginning of Period .................... 93,406 -- -- 281,088 144,357 ------- ------- -------- -------- -------- End of Period .......................... $97,494 $93,406 $217,707 $444,137 $281,088 ======= ======= ======== ======== ======== Shares Issued and Redeemed(1): Trust Shares: Shares Issued ........................ 5,971 9,758 20,338 10,848 17,356 Shares Issued in Lieu of Cash Distributions ...................... 134 12 -- 437 96 Shares Redeemed ...................... (6,536) (1,035) (1,635) (7,882) (4,848) ------- ------- -------- -------- -------- Net Trust Share Transactions ........... (431) 8,735 18,703 3,403 12,604 ------- ------- -------- -------- -------- Investor Shares: Shares Issued ........................ 286 438 324 428 1,095 Shares Issued in Lieu of Cash Distributions ...................... 10 1 -- 38 9 Shares Redeemed ...................... (170) (51) (21) (614) (537) ------- ------- -------- -------- -------- Net Investor Share Transactions ........ 126 388 303 (148) 567 ------- ------- -------- -------- -------- Flex Shares: Shares Issued ........................ 95 -- 84 202 -- Shares Issued in Lieu of Cash Distributions ...................... 1 -- -- 2 -- Shares Redeemed ...................... (12) -- -- (10) -- ------- ------- -------- -------- -------- Net Flex Share Transactions ............ 84 -- 84 194 -- ======= ======= ======== ======== ========
INVESTMENT GRADE FLORIDA TENNESSEE TAX-EXEMPT TAX-EXEMPT TAX-EXEMPT BOND FUND BOND FUND BOND FUND -------------------- -------------------- -------------------- 06/01/95- 06/01/94- 06/01/95- 06/01/94- 06/01/95- 06/01/94- 05/31/96 05/31/95 05/31/96 05/31/95 05/31/96 05/31/95 --------- --------- --------- --------- --------- --------- Operations: Net Investment Income .................. $ 5,851 $ 4,295 $ 1,235 $ 395 $ 185 $ 103 Net Realized Gain (Loss) on Investments 5,634 2,511 220 85 13 (11) Net Realized Gain (Loss) on Foreign Currency Transactions ................ -- -- -- -- -- -- Net Change in Unrealized Appreciation (Depreciation) on Foreign Currency and Translation of Other Assets and Liabilities in Foreign Currency ...... -- -- -- -- -- -- Net Change in Unrealized Appreciation (Depreciation) on Investments ........ (3,672) 3,246 (723) 421 (96) 99 -------- -------- ------- ------- ------ ------ Increase in Net Assets from Operations 7,813 10,052 732 901 102 191 -------- -------- ------- ------- ------ ------ Distributions to Shareholders: Net Investment Income: Trust Shares ......................... (4,292) (2,582) (996) (264) (80) (45) Investor Shares ...................... (1,492) (1,658) (171) (130) (54) (58) Flex Shares .......................... (120) -- (65) -- (51) -- Capital Gains: Trust Shares ......................... (3,335) (17) (111) -- -- -- Investor Shares ...................... (1,295) (11) (21) -- -- -- Flex Shares .......................... (137) -- (10) -- -- -- -------- -------- ------- ------- ------ ------ Total Distributions .................... (10,671) (4,268) (1,374) (394) (185) (103) -------- -------- ------- ------- ------ ------ Capital Transactions (1): Trust Shares: Proceeds from Shares Issued .......... 87,347 51,898 30,124 8,390 414 1,263 Reinvestment of Cash Distributions ... 4,062 1,220 228 83 36 29 Cost of Shares Repurchased ........... (42,946) (23,091) (9,139) (1,914) (264) (274) -------- -------- ------- ------- ------ ------ Increase (Decrease) in Net Assets From Trust Share Transactions ........ 48,463 30,027 21,213 6,559 186 1,018 -------- -------- ------- ------- ------ ------ Investor Shares: Proceeds from Shares Issued .......... 4,535 6,818 1,865 1,793 668 398 Reinvestment of Cash Distributions ... 2,347 1,410 127 97 35 45 Cost of Shares Repurchased ........... (10,550) (14,915) (1,235) (990) (333) (436) -------- -------- ------- ------- ------ ------ Increase (Decrease) in Net Assets From Investor Share Transactions ... (3,668) (6,687) 757 900 370 7 -------- -------- ------- ------- ------ ------ Flex Shares: Proceeds from Shares Issued .......... 6,823 -- 2,844 -- 2,235 -- Reinvestment of Cash Distributions ... 222 -- 50 -- 36 -- Cost of Shares Repurchased ........... (1,413) -- (153) -- (215) -- -------- -------- ------- ------- ------ ------ Increase in Net Assets From Flex Share Transactions ................... 5,632 -- 2,741 -- 2,056 -- -------- -------- ------- ------- ------ ------ Increase (Decrease) in Net Assets From Share Transactions ............ 50,427 23,340 24,711 7,459 2,612 1,025 -------- -------- ------- ------- ------ ------ Total Increase (Decrease) in Net Assets ....................... 47,569 29,124 24,069 7,966 2,529 1,113 -------- -------- ------- ------- ------ ------ Net Assets: Beginning of Period .................... 119,901 90,777 13,438 5,472 2,834 1,721 -------- -------- ------- ------- ------ ------ End of Period .......................... $167,470 $119,901 $37,507 $13,438 $5,363 $2,834 ======== ======== ======= ======= ====== ====== Shares Issued and Redeemed(1): Trust Shares: Shares Issued ........................ 7,736 4,811 2,945 857 43 137 Shares Issued in Lieu of Cash Distributions ...................... 362 113 22 9 4 3 Shares Redeemed ...................... (3,816) (2,168) (902) (199) (28) (29) -------- -------- ------- ------- ------ ------ Net Trust Share Transactions ........... 4,282 2,756 2,065 667 19 111 -------- -------- ------- ------- ------ ------ Investor Shares: Shares Issued ........................ 401 630 182 183 70 43 Shares Issued in Lieu of Cash Distributions ...................... 208 131 12 10 4 5 Shares Redeemed ...................... (934) (1,389) (120) (101) (35) (47) -------- -------- ------- ------- ------ ------ Net Investor Share Transactions ........ (325) (628) 74 92 39 1 -------- -------- ------- ------- ------ ------ Flex Shares: Shares Issued ........................ 603 -- 277 -- 233 -- Shares Issued in Lieu of Cash Distributions ...................... 20 -- 5 -- 4 -- Shares Redeemed ...................... (125) -- (15) -- (23) -- -------- -------- ------- ------- ------ ------ Net Flex Share Transactions ............ 498 -- 267 -- 214 -- ======== ======== ======= ======= ====== ======
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS. 109 STATEMENT OF CHANGES IN NET ASSETS (000) (concluded) ================================================================================ STI CLASSIC FUNDS FOR THE YEAR ENDED MAY 31, 1996
GEORGIA TAX-EXEMPT INVESTMENT GRADE SHORT-TERM BOND BOND FUND BOND FUND FUND ------------------- ------------------- ------------------- 06/01/95- 06/01/94- 06/01/95- 06/01/94- 06/01/95- 06/01/94- 05/31/96 05/31/95 05/31/96 05/31/95 05/31/96 05/31/95 --------- --------- --------- --------- --------- --------- Operations: Net Investment Income ........................ $ 971 $ 598 $ 35,694 $ 32,705 $ 4,224 $ 2,786 Net Realized Gain (Loss) on Investments ...... 330 (92) 19,716 (17,663) 1,358 (854) Net Change in Unrealized Appreciation (Depreciation) on Investments (789) 488 (32,383) 38,279 (2,395) 2,073 ------- ------- -------- -------- -------- ------- Increase in Net Assets from Operations ... 512 994 23,027 53,321 3,187 4,005 ------- ------- -------- -------- -------- ------- Distributions to Shareholders: Net Investment Income: Trust Shares ............................... (747) (459) (33,703) (30,731) (4,065) (2,639) Investor Shares ............................ (139) (137) (1,908) (1,979) (133) (144) Flex Shares ................................ (88) -- (114) -- (26) -- Capital Gains: Trust Shares ............................... (26) -- -- (181) (124) -- Investor Shares ............................ (6) -- -- (12) (4) -- Flex Shares ................................ (4) -- -- -- (1) -- ------- ------- -------- -------- -------- ------- Total Distributions ...................... (1,010) (596) (35,725) (32,903) (4,353) (2,783) ------- ------- -------- -------- -------- ------- Capital Transactions (1): Trust Shares: Proceeds from Shares Issued ................ 17,893 12,139 203,235 209,252 60,843 34,765 Reinvestment of Cash Distributions ......... 215 107 26,403 28,634 2,588 1,886 Cost of Shares Redeemed .................... (7,944) (3,723) (161,583) (174,411) (32,113) (11,630) ------- ------- -------- -------- -------- ------- Increase (Decrease) in Net Assets From Trust Share Transactions 10,164 8,523 68,055 63,475 31,318 25,021 ------- ------- -------- -------- -------- ------- Investor Shares: Proceeds from Shares Issued ................ 661 1,052 8,832 6,058 642 1,244 Reinvestment of Cash Distributions ......... 109 104 1,510 1,695 90 110 Cost of Shares Redeemed .................... (596) (1,260) (7,248) (10,879) (606) (1,189) ------- ------- -------- -------- -------- ------- Increase (Decrease) in Net Assets From Investor Share Transactions ................ 174 (104) 3,094 (3,126) 126 165 ------- ------- -------- -------- -------- ------- Flex Shares: Proceeds from Shares Issued ................ 4,355 -- 5,179 -- 1,014 -- Reinvestment of Cash Distributions ......... 75 -- 88 -- 22 -- Cost of Shares Redeemed .................... (150) -- (508) -- (53) -- ------- ------- -------- -------- -------- ------- Increase in Net Assets From Flex Share Transactions ......................... 4,280 -- 4,759 -- 983 -- ------- ------- -------- -------- -------- ------- Increase (Decrease) in Net Assets From Share Transactions ....................... 14,618 8,419 75,908 60,349 32,427 25,186 ------- ------- -------- -------- -------- ------- Total Increase (Decrease) in Net Assets .. 14,120 8,817 63,210 80,767 31,261 26,408 ------- ------- -------- -------- -------- ------- Net Assets: Beginning of Period .......................... 16,455 7,638 577,080 496,313 63,561 37,153 ------- ------- -------- -------- -------- ------- End of Period ................................ $30,575 $16,455 $640,290 $577,080 $ 94,822 $63,561 ======= ======= ======== ======== ======== ======= (1) Shares Issued and Redeemed: Trust Shares: Shares Issued .............................. 1,832 1,295 19,682 21,353 6,066 3,561 Shares Issued in Lieu of Cash Distributions 22 11 2,550 2,923 258 193 Shares Redeemed ............................ (823) (398) (15,629) (17,890) (3,190) (1,201) ------- ------- -------- -------- -------- ------- Net Trust Share Transactions ............. 1,031 908 6,603 6,386 3,134 2,553 ------- ------- -------- -------- -------- ------- Investor Shares: Shares Issued .............................. 68 113 856 618 64 128 Shares Issued in Lieu of Cash Distributions 11 11 146 173 9 11 Shares Redeemed ............................ (61) (135) (701) (1,115) (60) (121) ------- ------- -------- -------- -------- ------- Net Investor Share Transactions .......... 18 (11) 301 (324) 13 18 ------- ------- -------- -------- -------- ------- Flex Shares: Shares Issued .............................. 448 -- 499 -- 101 -- Shares Issued in Lieu of Cash Distributions 8 -- 8 -- 2 -- Shares Redeemed ............................ (15) -- (49) -- (5) -- ------- ------- -------- -------- -------- ------- Net Flex Share Transactions .............. 441 -- 458 -- 98 -- ======= ======= ======== ======== ======== ======= *Commencement of operations Amounts designated as "--" are either $0 or round to $0.
110
SHORT-TERM LIMITED-TERM U.S. TREASURY FEDERAL MORTGAGE U. S. GOVERNMENT SECURITIES FUND SECURITIES FUND SECURITIES FUND ------------------- --------------------- --------------------- 06/01/95- 06/01/94- 06/01/95- 06/07/94-* 06/01/95- 06/09/94-* 05/31/96 05/31/95 05/31/96 05/31/95 05/31/96 05/31/95 --------- --------- --------- ---------- --------- ---------- Operations: Net Investment Income ........................ $ 915 $ 679 $ 3,181 $ 1,515 $ 602 $ 69 Net Realized Gain (Loss) on Investments ...... 95 (160) 389 (267) (24) 6 Net Change in Unrealized Appreciation (Depreciation) on Investments (294) 375 (1,359) 910 (557) 130 ------- ------- -------- -------- ------- ------ Increase in Net Assets from Operations ... 716 894 2,211 2,158 21 205 ------- ------- -------- -------- ------- ------ Distributions to Shareholders: Net Investment Income: Trust Shares ............................... (551) (415) (3,012) (1,573) (453) (54) Investor Shares ............................ (308) (264) (68) (8) (68) (15) Flex Shares ................................ (56) -- (37) -- (81) -- Capital Gains: Trust Shares ............................... -- -- -- -- (18) -- Investor Shares ............................ -- -- -- -- (3) -- Flex Shares ................................ -- -- -- -- (5) -- ------- ------- -------- -------- ------- ------ Total Distributions ...................... (915) (679) (3,117) (1,581) (628) (69) ------- ------- -------- -------- ------- ------ Capital Transactions (1): Trust Shares: Proceeds from Shares Issued ................ 5,744 7,487 46,841 50,881 9,824 3,385 Reinvestment of Cash Distributions ......... 334 271 1,846 1,254 144 15 Cost of Shares Redeemed .................... (5,409) (11,026) (16,287) (10,879) (2,556) (224) ------- ------- -------- -------- ------- ------ Increase (Decrease) in Net Assets From Trust Share Transactions 669 (3,268) 32,400 41,256 7,412 3,176 ------- ------- -------- -------- ------- ------ Investor Shares: Proceeds from Shares Issued ................ 966 4,263 2,404 633 2,290 562 Reinvestment of Cash Distributions ......... 278 260 51 7 50 8 Cost of Shares Redeemed .................... (4,147) (2,291) (533) (27) (456) (2) ------- ------- -------- -------- ------- ------ Increase (Decrease) in Net Assets From Investor Share Transactions ................ (2,903) 2,232 1,922 613 1,884 568 ------- ------- -------- -------- ------- ------ Flex Shares: Proceeds from Shares Issued ................ 2,603 -- 1,538 -- 3,019 -- Reinvestment of Cash Distributions ......... 39 -- 27 -- 59 -- Cost of Shares Redeemed .................... (188) -- (196) -- (148) -- ------- ------- -------- -------- ------- ------ Increase in Net Assets From Flex Share Transactions ......................... 2,454 -- 1,369 -- 2,930 -- ------- ------- -------- -------- ------- ------ Increase (Decrease) in Net Assets From Share Transactions ....................... 220 (1,036) 35,691 41,869 12,226 3,744 ------- ------- -------- -------- ------- ------ Total Increase (Decrease) in Net Assets .. 21 (821) 34,785 42,446 11,619 3,880 ------- ------- -------- -------- ------- ------ Net Assets: Beginning of Period .......................... 16,743 17,564 42,446 -- 3,880 -- ------- ------- -------- -------- ------- ------ End of Period ................................ $16,764 $16,743 $ 77,231 $ 42,446 $15,499 $3,880 ======= ======= ======== ======== ======= ====== (1) Shares Issued and Redeemed: Trust Shares: Shares Issued .............................. 579 765 4,639 5,110 952 342 Shares Issued in Lieu of Cash Distributions 34 28 182 126 14 2 Shares Redeemed ............................ (547) (1,122) (1,610) (1,101) (249) (23) ------- ------- -------- -------- ------- ------ Net Trust Share Transactions ............. 66 (329) 3,211 4,135 717 321 ------- ------- -------- -------- ------- ------ Investor Shares: Shares Issued .............................. 97 433 238 64 225 56 Shares Issued in Lieu of Cash Distributions 28 27 5 1 5 1 Shares Redeemed ............................ (418) (234) (53) (3) (45) -- ------- ------- -------- -------- ------- ------ Net Investor Share Transactions .......... (293) 226 190 62 185 57 ------- ------- -------- -------- ------- ------ Flex Shares: Shares Issued .............................. 262 -- 152 -- 294 -- Shares Issued in Lieu of Cash Distributions 4 -- 2 -- 6 -- Shares Redeemed ............................ (19) -- (19) -- (15) -- ------- ------- -------- -------- ------- ------ Net Flex Share Transactions .............. 247 -- 135 -- 285 -- ======= ======= ======== ======== ======= ======
U.S. GOVERNMENT PRIME QUALITY SECURITIES TAX-EXEMPT MONEY MARKET FUND MONEY MARKET FUND MONEY MARKET FUND ---------------------- -------------------- -------------------- 06/01/95- 06/01/94- 06/01/95- 06/01/94- 06/01/95- 06/01/94- 05/31/96 05/31/95 05/31/96 05/31/95 05/31/96 05/31/95 --------- --------- --------- --------- --------- --------- Operations: Net Investment Income ........................ $ 54,132 $ 38,348 $ 20,311 $ 15,936 $ 12,217 $ 8,400 Net Realized Gain (Loss) on Investments ...... (82) 71 90 (98) 9 (14) Net Change in Unrealized Appreciation (Depreciation) on Investments -- -- -- -- -- -- ---------- --------- ---------- --------- --------- -------- Increase in Net Assets from Operations ... 54,050 38,419 20,401 15,838 12,226 8,386 ---------- --------- ---------- --------- --------- -------- Distributions to Shareholders: Net Investment Income: Trust Shares ............................... (44,689) (32,217) (17,516) (14,171) (9,342) (6,323) Investor Shares ............................ (9,442) (6,118) (2,795) (1,765) (2,872) (2,044) Flex Shares ................................ -- -- -- -- -- -- Capital Gains: Trust Shares ............................... -- -- -- -- -- -- Investor Shares ............................ -- -- -- -- -- -- Flex Shares ................................ -- -- -- -- -- -- ---------- --------- ---------- --------- --------- -------- Total Distributions ...................... (54,131) (38,335) (20,311) (15,936) (12,214) (8,367) ---------- --------- ---------- --------- --------- -------- Capital Transactions (1): Trust Shares: Proceeds from Shares Issued ................ 2,131,623 2,066,213 1,156,411 1,082,598 719,678 493,579 Reinvestment of Cash Distributions ......... 1,223 538 60 14 3 1 Cost of Shares Redeemed .................... (1,881,171) (1,851,031) (1,265,169) (957,634) (661,491) (422,164) ---------- --------- ---------- --------- --------- -------- Increase (Decrease) in Net Assets From Trust Share Transactions 251,675 215,720 (108,698) 124,978 58,190 71,416 ---------- --------- ---------- --------- --------- -------- Investor Shares: Proceeds from Shares Issued ................ 1,012,310 1,019,462 231,451 338,408 322,435 235,805 Reinvestment of Cash Distributions ......... 8,255 5,689 2,414 1,594 2,480 1,523 Cost of Shares Redeemed .................... (962,468) (996,964) (221,906) (325,755) (317,341) (211,360) ---------- --------- ---------- --------- --------- -------- Increase (Decrease) in Net Assets From Investor Share Transactions ................ 58,097 28,187 11,959 14,247 7,574 25,968 ---------- --------- ---------- --------- --------- -------- Flex Shares: Proceeds from Shares Issued ................ -- -- -- -- -- -- Reinvestment of Cash Distributions ......... -- -- -- -- -- -- Cost of Shares Redeemed .................... -- -- -- -- -- -- ---------- --------- ---------- --------- --------- -------- Increase in Net Assets From Flex Share Transactions ......................... -- -- -- -- -- -- ---------- --------- ---------- --------- --------- -------- Increase (Decrease) in Net Assets From Share Transactions ....................... 309,772 243,907 (96,739) 139,225 65,764 97,384 ---------- --------- ---------- --------- --------- -------- Total Increase (Decrease) in Net Assets .. 309,691 243,991 (96,649) 139,127 65,776 97,403 ---------- --------- ---------- --------- --------- -------- Net Assets: Beginning of Period .......................... 956,805 712,814 480,750 341,623 303,060 205,657 ---------- --------- ---------- --------- --------- -------- End of Period ................................ $1,266,496 $ 956,805 $ 384,101 $ 480,750 $ 368,836 $303,060 ========== ========= ========== ========= ========= ======== (1) Shares Issued and Redeemed: Trust Shares: Shares Issued .............................. 2,131,623 2,066,213 1,156,411 1,082,598 719,678 493,579 Shares Issued in Lieu of Cash Distributions 1,223 538 60 14 3 1 Shares Redeemed ............................ (1,881,171) (1,851,031) (1,265,169) (957,634) (661,491) (422,164) ---------- --------- ---------- --------- --------- -------- Net Trust Share Transactions ............. 251,675 215,720 (108,698) 124,978 58,190 71,416 ---------- --------- ---------- --------- --------- -------- Investor Shares: Shares Issued .............................. 1,012,310 1,019,462 231,451 338,408 322,435 235,805 Shares Issued in Lieu of Cash Distributions 8,255 5,689 2,414 1,594 2,480 1,523 Shares Redeemed ............................ (962,468) (996,964) (221,906) (325,755) (317,341) (211,360) ---------- --------- ---------- --------- --------- -------- Net Investor Share Transactions .......... 58,097 28,187 11,959 14,247 7,574 25,968 ---------- --------- ---------- --------- --------- -------- Flex Shares: Shares Issued .............................. -- -- -- -- -- -- Shares Issued in Lieu of Cash Distributions -- -- -- -- -- -- Shares Redeemed ............................ -- -- -- -- -- -- ---------- --------- ---------- --------- --------- -------- Net Flex Share Transactions .............. -- -- -- -- -- -- ========== ========= ========== ========= ========= ========
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS. 111 FINANCIAL HIGHLIGHTS ================================================================================ STI CLASSIC FUNDS FOR THE PERIOD FROM INCEPTION THROUGH MAY 31, 1996 FOR A SHARE OUTSTANDING THROUGHOUT THE PERIOD
NET REALIZED NET ASSET VALUE NET AND UNREALIZED DISTRIBUTIONS DISTRIBUTIONS NET ASSET BEGINNING INVESTMENT GAINS (LOSSES) FROM NET FROM REALIZED VALUE END OF PERIOD INCOME ON INVESTMENTS INVESTMENT INCOME CAPITAL GAINS OF PERIOD --------------- ---------- -------------- ----------------- ------------- --------- VALUE INCOME STOCK FUND Trust Shares 1996 $11.59 $0.35 $ 2.71 $(0.34) $(1.16) $13.15 1995 10.54 0.32 1.56 (0.32) (0.51) 11.59 1994 10.23 0.29 0.70 (0.32) (0.36) 10.54 1993(1) 10.00 0.11 0.16 (0.04) -- 10.23 Investor Shares 1996 $11.58 $0.30 $ 2.71 $(0.30) $(1.16) $13.13 1995 10.52 0.28 1.56 (0.27) (0.51) 11.58 1994 10.23 0.26 0.67 (0.27) (0.37) 10.52 1993(2) 9.73 0.09 0.44 (0.03) -- 10.23 Flex Shares 1996(3) $11.59 $0.26 $ 2.65 $(0.26) $(1.16) $13.08 MID-CAP EQUITY FUND (A) Trust Shares 1996 $11.00 $0.08 $ 2.63 $(0.08) $(0.87) $12.76 1995 9.85 0.08 1.15 (0.08) -- 11.00 1994(4) 10.00 0.02 (0.16) (0.01) -- 9.85 Investor Shares 1996 $10.99 $0.03 $ 2.62 $(0.03) $(0.87) $12.74 1995 9.84 0.03 1.15 (0.03) -- 10.99 1994(5) 10.00 0.01 (0.17) -- -- 9.84 Flex Shares 1996(6) $11.13 -- $ 2.45 $(0.02) $(0.87) $12.69 CAPITAL GROWTH FUND Trust Shares 1996 $12.18 $0.12 $ 3.32 $(0.13) $(0.59) $14.90 1995 11.99 0.16 0.57 (0.14) (0.40) 12.18 1994 11.95 0.16 0.31 (0.17) (0.26) 11.99 1993(7) 10.36 0.12 1.57 (0.10) -- 11.95 Investor Shares 1996 $12.17 $0.03 $ 3.32 $(0.04) $(0.59) $14.89 1995 11.98 0.09 0.57 (0.07) (0.40) 12.17 1994 11.93 0.09 0.31 (0.09) (0.26) 11.98 1993(8) 10.00 0.06 1.93 (0.06) -- 11.93 Flex Shares 1996(3) $12.20 $0.02 $ 3.26 $(0.05) $(0.59) $14.84 BALANCED FUND Trust Shares 1996 $10.26 $0.33 $ 1.41 $(0.34) $(0.11) $11.55 1995 9.76 0.33 0.49 (0.32) -- 10.26 1994(9) 10.00 0.11 (0.29) (0.06) -- 9.76 Investor Shares 1996 $10.30 $0.30 $ 1.41 $(0.30) $(0.11) $11.60 1995 9.79 0.28 0.51 (0.28) -- 10.30 1994(10) 10.00 0.03 (0.24) -- -- 9.79 Flex Shares 1996(11) $10.36 $0.24 $ 1.29 $(0.25) $(0.11) $11.53 INTERNATIONAL EQUITY INDEX FUND Trust Shares 1996 $10.24 $0.10 $ 0.84 $(0.13) $(0.09) $10.96 1995(12) 10.00 0.08 0.19 (0.02) (0.01) 10.24 Investor Shares 1996 $10.20 $0.05 $ 0.85 $(0.13) $(0.09) $10.88 1995(12) 10.00 0.05 0.17 (0.01) (0.01) 10.20 Flex Shares 1996(13) $10.24 -- $ 0.82 $(0.10) $(0.09) $10.87 * Annualized. (DAGGER) Cumulative since inception. (1) Commenced operations on February 12, 1993. (2) Commenced operations on February 17, 1993. (3) Commenced operations on June 1, 1995. (4) Commenced operations on February 2, 1994. (5) Commenced operations on February 1, 1994. (6) Commenced operations on June 5, 1995.
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RATIO OF NET RATIO OF INVESTMENT RATIO OF NET EXPENSES TO INCOME (LOSS) RATIO OF INVESTMENT AVERAGE NET TO AVERAGE NET NET ASSETS EXPENSES TO INCOME (LOSS) ASSETS EXCLUDING ASSETS (EXCLUDING PORTFOLIO TOTAL END OF AVERAGE TO AVERAGE WAIVERS AND WAIVERS AND TURNOVER RETURN (B) PERIOD (000) NET ASSETS NET ASSETS REIMBURSEMENTS) REIMBURSEMENTS) RATE ---------- ------------ ----------- ------------- ---------------- ----------------- --------- VALUE INCOME STOCK FUND Trust Shares 1996 27.91% $1,244,399 0.92% 2.86% 0.92% 2.86% 133.99% 1995 19.06% 991,977 0.95% 3.16% 0.95% 3.16% 125.71% 1994 9.95% 573,082 0.88% 3.21% 0.97% 3.12% 149.28% 1993(1) 9.05%* 137,761 0.80%* 4.32%* 0.96%* 4.16%* 34.71% Investor Shares 1996 27.39% $ 130,597 1.30% 2.47% 1.37% 2.40% 133.99% 1995 18.71% 92,256 1.30% 2.80% 1.41% 2.69% 125.71% 1994 9.27% 60,589 1.25% 2.80% 1.44% 2.61% 149.28% 1993(2) 19.42%* 24,779 1.15%* 4.51%* 1.63%* 4.04%* 34.71% Flex Shares 1996(3) 26.52%* $ 26,298 2.00%* 1.72%* 2.15%* 1.57%* 133.99% MID-CAP EQUITY FUND (A) Trust Shares 1996 25.54% $ 253,905 1.15% 0.70% 1.29% 0.56% 115.62% 1995 12.56% 125,562 1.15% 0.88% 1.32% 0.71% 65.63% 1994(4) (1.39%)(DAGGER) 57,036 1.15%* 1.20%* 1.68%* 0.67%* 7.99% Investor Shares 1996 24.93% $ 17,971 1.60% 0.25% 1.96% (0.11%) 115.62% 1995 11.96% 7,345 1.60% 0.43% 2.27% (0.24%) 65.63% 1994(5) (1.60%)(DAGGER) 3,004 1.60%* 0.74%* 4.60%* (2.26%)* 7.99% Flex Shares 1996(6) 23.00%* $ 5,029 2.20%* (0.37%)* 3.04%* (1.21%)* 115.62% CAPITAL GROWTH FUND Trust Shares 1996 28.97% $ 981,498 1.15% 0.90% 1.27% 0.78% 156.46% 1995 6.63% 984,205 1.15% 1.38% 1.28% 1.25% 127.79% 1994 3.87% 891,870 1.15% 1.25% 1.29% 1.11% 123.87% 1993(7) 17.90%* 507,692 1.15%* 1.43%* 1.28%* 1.30%* 95.02% Investor Shares 1996 28.18% $ 191,078 1.80% 0.24% 2.08% (0.04%) 156.46% 1995 5.93% 160,875 1.80% 0.73% 2.10% 0.43% 127.79% 1994 3.26% 170,795 1.80% 0.64% 2.11% 0.33% 123.87% 1993(8) 20.49%* 131,858 1.80%* 0.81%* 2.06%* 0.55%* 95.02% Flex Shares 1996(3) 27.48%* $ 10,969 2.27%* (0.29%)* 2.68%* (0.70%)* 156.46% BALANCED FUND Trust Shares 1996 17.26% $ 111,638 0.95% 3.00% 1.09% 2.86% 154.63% 1995 8.72% 89,051 0.95% 3.44% 1.11% 3.28% 156.61% 1994(9) (1.78%)(DAGGER) 90,579 0.95%* 2.76%* 1.25%* 2.46%* 105.65% Investor Shares 1996 16.88% $ 4,896 1.25% 2.70% 1.89% 2.06% 154.63% 1995 8.29% 3,765 1.25% 3.17% 1.80% 2.62% 156.61% 1994(10) (2.10%)(DAGGER) 2,311 1.25%* 2.46%* 4.91%* (1.20%)* 105.65% Flex Shares 1996(11) 15.58%* $ 3,131 2.00%* 1.85%* 2.97%* 0.88%* 154.63% INTERNATIONAL EQUITY INDEX FUND Trust Shares 1996 9.29% $ 90,980 1.05% 0.84% 1.19% 0.70% 30.46% 1995(12) 2.69%(DAGGER) 89,446 1.05%* 1.13%* 1.31%* 0.87%* 10.37% Investor Shares 1996 8.90% $ 5,597 1.45% 0.48% 2.06% (0.13%) 30.46% 1995(12) 2.18%(DAGGER) 3,960 1.45%* 0.67%* 2.44%* (0.32%)* 10.37% Flex Shares 1996(13) 8.32%(DAGGER) $ 917 2.10%* (0.24%)* 4.14%* (2.28%)* 30.46% (7) Commenced operations on July 1, 1992. (8) Commenced operations on June 9, 1992. (9) Commenced operations on January 3, 1994. (10) Commenced operations on January 4, 1994. (11) Commenced operations on June 14, 1995. (12) Commenced operations on June 6, 1994. (13) Commenced operations on June 8, 1995. (A) During the fiscal year ended May 31, 1996, the Aggressive Growth Fund changed its name to the Mid-Cap Equity Fund. (B) Total return figures do not reflect applicable sales loads.
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS. 113 FINANCIAL HIGHLIGHTS (continued) ================================================================================ STI CLASSIC FUNDS FOR THE PERIOD FROM INCEPTION THROUGH MAY 31, 1996 FOR A SHARE OUTSTANDING THROUGHOUT THE PERIOD
NET NET REALIZED AND DISTRIBUTIONS NET ASSET VALUE INVESTMENT UNREALIZED FROM DISTRIBUTIONS NET ASSET BEGINNING INCOME GAINS (LOSSES) NET INVESTMENT FROM REALIZED VALUE END OF PERIOD (LOSS) ON INVESTMENTS INCOME CAPITAL GAINS OF PERIOD --------------- ---------- ---------------- -------------- ------------- --------- INTERNATIONAL EQUITY FUND Trust Shares 1996(1) $10.00 $ 0.05 $ 1.35 -- -- $11.40 Investor Shares 1996(2) $10.44 $ 0.04 $ 0.90 -- -- $11.38 Flex Shares 1996(2) $10.44 $ 0.02 $ 0.91 -- -- $11.37 SUNBELT EQUITY FUND Trust Shares 1996 $10.03 $(0.04) $ 4.32 -- $(0.20) $14.11 1995 9.70 (0.01) 0.38 -- (0.04) 10.03 1994(3) 10.00 -- (0.30) -- -- 9.70 Investor Shares 1996 $9.96 $(0.11) $ 4.30 -- $(0.20) $13.95 1995 9.69 (0.05) 0.36 -- (0.04) 9.96 1994(4) 10.00 (0.02) (0.29) -- -- 9.69 Flex Shares 1996(5) $10.20 $(0.07) $ 4.04 -- $(0.20) $13.97 INVESTMENT GRADE TAX-EXEMPT BOND FUND Trust Shares 1996 $11.28 $ 0.45 $ 0.19 $(0.45) $(0.37) $11.10 1995 10.68 0.46 0.60 (0.46) -- 11.28 1994(6) 11.37 0.22 (0.34) (0.22) (0.35) 10.68 Investor Shares 1996 $11.30 $ 0.41 $ 0.19 $(0.41) $(0.37) $11.12 1995 10.69 0.42 0.61 (0.42) -- 11.30 1994 10.79 0.33 0.25 (0.33) (0.35) 10.69 1993(7) 10.00 0.35 0.82 (0.35) (0.03) 10.79 Flex Shares 1996(8) $11.30 $ 0.37 $ 0.18 $(0.37) $(0.37) $11.11 FLORIDA TAX-EXEMPT BOND FUND Trust Shares 1996 $10.18 $ 0.46 $(0.07) $(0.46) $(0.05) $10.06 1995 9.75 0.44 0.43 (0.44) -- 10.18 1994(9) 10.00 0.13 (0.25) (0.13) -- 9.75 Investor Shares 1996 $10.18 $ 0.44 $(0.06) $(0.44) $(0.05) $10.07 1995 9.75 0.42 0.43 (0.42) -- 10.18 1994(10) 10.00 0.13 (0.25) (0.13) -- 9.75 Flex Shares 1996(8) $10.19 $ 0.39 $(0.06) $(0.39) $(0.05) $10.08 TENNESSEE TAX-EXEMPT BOND FUND Trust Shares 1996 $9.50 $ 0.43 $(0.11) $(0.42) $ -- $ 9.40 1995 9.22 0.44 0.28 (0.44) -- 9.50 1994(11) 10.00 0.12 (0.77) (0.13) -- 9.22 Investor Shares 1996 $9.53 $ 0.41 $(0.10) $(0.42) $ -- $ 9.42 1995 9.23 0.44 0.29 (0.43) -- 9.53 1994(12) 10.00 0.13 (0.77) (0.13) -- 9.23 Flex Shares 1996(5) $9.59 $ 0.37 $(0.18) $(0.37) $ -- $ 9.41 * Annualized. (DAGGER) Cumulative since inception. (1) Commenced operations on December 1, 1995. (2) Commenced operations on January 2, 1996. (3) Commenced operations on January 3, 1994. (4) Commenced operations on January 4, 1994. (5) Commenced operations on June 5, 1995.
114
RATIO OF RATIO OF RATIO OF NET INVESTMENT RATIO OF NET INVESTMENT EXPENSES TO INCOME (LOSS) TO NET ASSETS EXPENSES INCOME (LOSS) AVERAGE NET ASSETS AVERAGE NET ASSETS PORTFOLIO TOTAL END OF TO AVERAGE TO AVERAGE (EXCLUDING WAIVERS (EXCLUDING WAIVERS TURNOVER RETURN (A) PERIOD (000) NET ASSETS NET ASSETS AND REIMBURSEMENTS) AND REIMBURSEMENTS) RATE ---------- ------------ ---------- -------------- ------------------- ------------------- --------- INTERNATIONAL EQUITY FUND Trust Shares 1996(1) 14.00%(DAGGER) $213,306 1.46%* 1.36%* 1.65%* 1.17%* 113.34% Investor Shares 1996(2) 9.00%(DAGGER) $ 3,448 1.81%* 1.73%* 3.14%* 0.40%* 113.34% Flex Shares 1996(2) 8.91%(DAGGER) $ 953 2.51%* 1.08%* 5.86%* (2.27)%* 113.34% SUNBELT EQUITY FUND Trust Shares 1996 43.19% $412,430 1.15% (0.34%) 1.28% (0.47%) 106.27% 1995 3.81% 258,908 1.15% (0.12%) 1.30% (0.27%) 80.03% 1994(3) (2.99%)(DAGGER) 128,280 1.15%* (0.19%)* 1.58%* (0.62%)* 21.42% Investor Shares 1996 42.58% $ 29,002 1.60% (0.79%) 1.93% (1.12%) 106.27% 1995 3.20% 22,180 1.60% (0.57%) 1.98% (0.95%) 80.03% 1994(4) (3.10%)(DAGGER) 16,077 1.60%* (0.63%)* 2.04%* (1.07%)* 21.42% Flex Shares 1996(5) 39.86%* $ 2,705 2.20%* (1.43%)* 3.62%* (2.85%)* 106.27% INVESTMENT GRADE TAX-EXEMPT BOND FUND Trust Shares 1996 5.82% $124,507 0.75% 4.01% 0.89% 3.87% 513.90% 1995 10.21% 78,208 0.75% 4.34% 0.91% 4.18% 591.91% 1994(6) (1.10%)(DAGGER) 44,595 0.75%* 3.46%* 0.95%* 3.26%* 432.46% Investor Shares 1996 5.40% $ 37,427 1.15% 3.61% 1.42% 3.34% 513.90% 1995 9.91% 41,693 1.15% 3.88% 1.43% 3.60% 591.91% 1994 5.37% 46,182 1.14% 2.96% 1.51% 2.59% 432.46% 1993(7) 11.88%* 15,844 1.12%* 3.61%* 1.83%* 2.90%* 344.87% Flex Shares 1996(8) 4.91%* $ 5,536 1.63%* 3.12%* 2.25%* 2.50%* 513.90% FLORIDA TAX-EXEMPT BOND FUND Trust Shares 1996 3.87% $ 30,790 0.65% 4.49% 0.88% 4.26% 62.68% 1995 9.26% 10,118 0.65% 4.63% 1.13% 4.15% 105.01% 1994(9) (1.19%)(DAGGER) 3,192 0.65%* 3.86%* 1.12%* 3.39%* 53.24% Investor Shares 1996 3.76% $ 4,025 0.85% 4.28% 1.36% 3.77% 62.68% 1995 9.04% 3,320 0.85% 4.36% 1.50% 3.71% 105.01% 1994(10) (1.22%)(DAGGER) 2,280 0.85%* 3.67%* 3.20%* 1.32%* 53.24% Flex Shares 1996(8) 3.27%* $ 2,692 1.35%* 3.79%* 2.54%* 2.60%* 62.68% TENNESSEE TAX-EXEMPT BOND FUND Trust Shares 1996 3.43% $ 1,823 0.65% 4.49% 1.68% 3.46% 41.00% 1995 8.17% 1,664 0.65% 4.90% 2.65% 2.90% 27.73% 1994(11) (6.52%)(DAGGER) 594 0.65%* 4.24%* 1.43%* 3.46%* 13.05% Investor Shares 1996 3.28% $ 1,523 0.85% 4.29% 2.08% 3.06% 41.00% 1995 8.24% 1,170 0.85% 4.70% 2.10% 3.45% 27.73% 1994(12) (6.39%)(DAGGER) 1,127 0.85%* 3.74%* 6.60%* (2.01%)* 13.05% Flex Shares 1996(5) 1.98%* $ 2,017 1.34%* 3.80%* 2.74%* 2.40%* 41.00% (6) Commenced operations on October 21, 1993. (7) Commenced operations on June 9, 1992. (8) Commenced operations on June 1, 1995. (9) Commenced operations on January 25, 1994. (10) Commenced operations on January 18, 1994. (11) Commenced operations on January 27, 1994. (12) Commenced operations on January 19, 1994. (A) Total return figures do not reflect applicable sales loads.
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS. 115 FINANCIAL HIGHLIGHTS (continued) ================================================================================ STI CLASSIC FUNDS FOR THE PERIOD FROM INCEPTION THROUGH MAY 31, 1996 FOR A SHARE OUTSTANDING THROUGHOUT THE PERIOD
NET REALIZED AND DISTRIBUTIONS NET ASSET VALUE NET UNREALIZED FROM DISTRIBUTIONS NET ASSET BEGINNING INVESTMENT GAINS (LOSSES) NET INVESTMENT FROM REALIZED VALUE END OF PERIOD INCOME ON INVESTMENTS INCOME CAPITAL GAINS OF PERIOD --------------- ---------- ---------------- -------------- ------------- --------- GEORGIA TAX-EXEMPT BOND FUND Trust Shares 1996 $ 9.63 $0.43 $(0.05) $(0.43) $(0.02) $ 9.56 1995 9.42 0.42 0.21 (0.42) -- 9.63 1994 (1) 10.00 0.14 (0.58) (0.14) -- 9.42 Investor Shares $ 9.65 $0.41 $(0.05) $(0.41) $(0.02) $ 9.58 1995 9.44 0.40 0.21 (0.40) -- 9.65 1994 (2) 10.00 0.13 (0.56) (0.13) -- 9.44 Flex Shares 1996(3) $ 9.72 $0.36 $(0.14) $(0.36) $(0.02) $ 9.56 INVESTMENT GRADE BOND FUND Trust Shares 1996 $10.26 $0.60 $(0.19) $(0.60) -- $10.07 1995 9.89 0.61 0.37 (0.61) -- 10.26 1994 10.45 0.50 (0.36) (0.50) $(0.20) 9.89 1993(4) 10.09 0.45 0.36 (0.45) -- 10.45 Investor Shares 1996 $10.26 $0.56 $(0.20) $(0.56) -- $10.06 1995 9.89 0.57 0.38 (0.58) -- 10.26 1994 10.44 0.46 (0.35) (0.46) $(0.20) 9.89 1993(5) 10.00 0.44 0.44 (0.44) -- 10.44 Flex Shares 1996(6) $10.33 $0.52 $(0.26) $(0.52) -- $10.07 SHORT-TERM BOND FUND Trust Shares 1996 $ 9.98 $0.54 $(0.10) $(0.54) $(0.02) $ 9.86 1995 9.79 0.53 0.19 (0.53) -- 9.98 1994 10.01 0.42 (0.21) (0.42) (0.01) 9.79 1993(7) 10.00 0.08 0.01 (0.08) -- 10.01 Investor Shares 1996 $10.01 $0.52 $(0.10) $(0.53) $(0.02) $ 9.88 1995 9.81 0.51 0.19 (0.50) -- 10.01 1994 10.03 0.40 (0.21) (0.40) (0.01) 9.81 1993(8) 10.06 0.06 (0.03) (0.06) -- 10.03 Flex Shares 1996(9) $10.02 $0.47 $(0.12) $(0.47) $(0.02) $ 9.88 SHORT-TERM U.S. TREASURY SECURITIES FUND Trust Shares 1996 $ 9.93 $0.55 $(0.09) $(0.55) -- $ 9.84 1995 9.82 0.47 0.11 (0.47) -- 9.93 1994 9.98 0.33 (0.11) (0.33) $(0.05) 9.82 1993(7) 10.00 0.07 (0.02) (0.07) -- 9.98 Investor Shares 1996 $ 9.94 $0.54 $(0.10) $(0.54) -- $ 9.84 1995 9.83 0.46 0.11 (0.46) -- 9.94 1994 9.99 0.32 (0.12) (0.31) $(0.05) 9.83 1993(10) 10.01 0.06 (0.02) (0.06) -- 9.99 Flex Shares 1996(11) $ 9.96 $0.48 $(0.14) $(0.48) -- $ 9.82 * Annualized. (DAGGER) Cumulative since inception. (1) Commenced operations on January 18, 1994. (2) Commenced operations on January 19, 1994. (3) Commenced operations on June 6, 1995. (4) Commenced operations on July 16, 1992. (5) Commenced operations on June 11, 1992.
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RATIO OF RATIO OF RATIO OF NET INVESTMENT RATIO OF NET INVESTMENT EXPENSES TO INCOME (LOSS) TO NET ASSETS EXPENSES INCOME TO AVERAGE NET ASSETS AVERAGE NET ASSETS PORTFOLIO TOTAL END OF TO AVERAGE AVERAGE (EXCLUDING WAIVERS (EXCLUDING WAIVERS TURNOVER RETURN (A) PERIOD (000) NET ASSETS NET ASSETS AND REIMBURSEMENTS) AND REIMBURSEMENTS) RATE ---------- ------------ ---------- ------------- ------------------- ------------------- --------- GEORGIA TAX-EXEMPT BOND FUND Trust Shares 1996 3.89% $ 22,950 0.65% 4.36% 0.89% 4.12% 60.02% 1995 6.94% 13,187 0.65% 4.56% 0.98% 4.23% 24.50% 1994 (1) (4.43%)(DAGGER) 4,338 0.65%* 4.12%* 1.06%* 3.71%* 25.90% Investor Shares 3.69% $ 3,418 0.85% 4.17% 1.41% 3.61% 60.02% 1995 6.70% 3,268 0.85% 4.31% 1.43% 3.73% 24.50% 1994 (2) (4.29%)(DAGGER) 3,300 0.85%* 3.93%* 2.36%* 2.42%* 25.90% Flex Shares 1996(3) 2.25%* $ 4,207 1.35%* 3.66%* 2.35%* 2.66%* 60.02% INVESTMENT GRADE BOND FUND Trust Shares 1996 4.02% $599,514 0.75% 5.81% 0.87% 5.69% 184.33% 1995 10.39% 543,308 0.75% 6.22% 0.88% 6.09% 237.66% 1994 1.17% 460,538 0.75% 4.77% 0.88% 4.64% 259.19% 1993(4) 9.34%* 336,132 0.74%* 5.14%* 0.87%* 5.01%* 299.32% Investor Shares 1996 3.50% $ 36,155 1.15% 5.40% 1.44% 5.11% 184.33% 1995 10.04% 33,772 1.15% 5.79% 1.49% 5.45% 237.66% 1994 0.86% 35,775 1.14% 4.39% 1.41% 4.12% 259.19% 1993(5) 9.21% 24,375 1.14%* 4.75%* 1.46%* 4.43%* 299.32% Flex Shares 1996(6) 2.50%* $ 4,621 1.64%* 4.84%* 2.49%* 3.99%* 184.33% SHORT-TERM BOND FUND Trust Shares 1996 4.45% $ 91,156 0.65% 5.39% 0.81% 5.23% 162.62% 1995 7.60% 60,952 0.65% 5.49% 0.85% 5.29% 200.49% 1994 2.02% 34,772 0.65% 4.15% 0.85% 3.95% 74.85% 1993(7) 4.45%* 25,334 0.64%* 3.88%* 1.11%* 3.41%* 63.89% Investor Shares 1996 4.23% $ 2,700 0.85% 5.20% 1.72% 4.33% 162.62% 1995 7.44% 2,609 0.85% 5.24% 1.56% 4.53% 200.49% 1994 1.81% 2,381 0.85% 3.94% 2.52% 2.27% 74.85% 1993(8) 1.65%* 716 0.85%* 3.85%* 7.22%* (2.52%)* 63.89% Flex Shares 1996(9) 3.73%* $ 966 1.20%* 4.77%* 4.06%* 1.91%* 162.62% SHORT-TERM U.S. TREASURY SECURITIES FUND Trust Shares 1996 4.73% $ 10,149 0.65% 5.56% 1.00% 5.21% 94.00% 1995 6.11% 9,599 0.65% 4.91% 1.08% 4.48% 87.98% 1994 2.17% 12,723 0.65% 3.23% 0.81% 3.07% 116.57% 1993(7) 2.22%* 30,336 0.63%* 3.34%* 1.04%* 2.93%* 36.44% Investor Shares 1996 4.52% $ 4,192 0.80% 5.43% 1.32% 4.91% 94.00% 1995 6.03% 7,144 0.80% 4.74% 1.33% 4.21% 87.98% 1994 2.01% 4,841 0.78% 3.11% 1.41% 2.48% 116.57% 1993(10) 1.84%* 2,423 0.80%* 3.16%* 3.42%* 0.54%* 36.44% Flex Shares 1996(11) 3.72%* $ 2,423 1.05%* 5.03%* 2.97%* 3.11%* 94.00% (6) Commenced operations on June 7, 1995. (7) Commenced operations on March 15, 1993. (8) Commenced operations on March 22, 1993. (9) Commenced operations on June 20, 1995. (10) Commenced operations on March 18, 1993. (11) Commenced operations on June 22, 1995. (A) Total return figures do not reflect applicable sales loads.
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS. 117 FINANCIAL HIGHLIGHTS (concluded) ================================================================================ STI CLASSIC FUNDS FOR THE PERIOD FROM INCEPTION THROUGH MAY 31, 1996 FOR A SHARE OUTSTANDING THROUGHOUT THE PERIOD
NET REALIZED AND DISTRIBUTIONS NET ASSET VALUE NET UNREALIZED FROM DISTRIBUTIONS NET ASSET BEGINNING INVESTMENT GAINS (LOSSES) NET INVESTMENT FROM REALIZED VALUE END OF PERIOD INCOME ON INVESTMENTS INCOME CAPITAL GAINS OF PERIOD --------------- ---------- ---------------- -------------- ------------- --------- LIMITED-TERM FEDERAL MORTGAGE SECURITIES FUND Trust Shares 1996 $10.11 $0.62 $(0.14) $(0.60) -- $ 9.99 1995(1) 10.00 0.58 0.13 (0.60) -- 10.11 Investor Shares 1996 $10.11 $0.60 $(0.14) $(0.60) -- $ 9.97 1995(2) 9.98 0.58 0.13 (0.58) -- 10.11 Flex Shares 1996(3) $10.14 $0.55 $(0.15) $(0.55) -- $ 9.99 U.S. GOVERNMENT SECURITIES FUND Trust Shares 1996 $10.27 $0.62 $(0.33) $(0.62) $(0.03) $ 9.91 1995(4) 9.98 0.53 0.29 (0.53) -- 10.27 Investor Shares 1996 $10.26 $0.59 $(0.33) $(0.59) $(0.03) $ 9.90 1995(5) 10.00 0.56 0.26 (0.56) -- 10.26 Flex Shares 1996(3) $10.31 $0.52 $(0.37) $(0.52) $(0.03) $ 9.91 PRIME QUALITY MONEY MARKET FUND Trust Shares 1996 $1.00 $0.05 -- $(0.05) -- $1.00 1995 1.00 0.05 -- (0.05) -- 1.00 1994 1.00 0.03 -- (0.03) -- 1.00 1993(6) 1.00 0.03 -- (0.03) -- 1.00 Investor Shares 1996 $1.00 $0.05 -- $(0.05) -- $1.00 1995 1.00 0.05 -- (0.05) -- 1.00 1994 1.00 0.03 -- (0.03) -- 1.00 1993(6) 1.00 0.03 -- (0.03) -- 1.00 U.S. GOVERNMENT SECURITIES MONEY MARKET FUND Trust Shares 1996 $1.00 $0.05 -- $(0.05) -- $1.00 1995 1.00 0.05 -- (0.05) -- 1.00 1994 1.00 0.03 -- (0.03) -- 1.00 1993(6) 1.00 0.03 -- (0.03) -- 1.00 Investor Shares 1996 $1.00 $0.05 -- $(0.05) -- $1.00 1995 1.00 0.04 -- (0.04) -- 1.00 1994 1.00 0.03 -- (0.03) -- 1.00 1993(6) 1.00 0.03 -- (0.03) -- 1.00 TAX-EXEMPT MONEY MARKET FUND Trust Shares 1996 $1.00 $0.03 -- $(0.03) -- $1.00 1995 1.00 0.03 -- (0.03) -- 1.00 1994 1.00 0.02 -- (0.02) -- 1.00 1993(6) 1.00 0.02 -- (0.02) -- 1.00 Investor Shares 1996 $1.00 $0.03 -- $(0.03) -- $1.00 1995 1.00 0.03 -- (0.03) -- 1.00 1994 1.00 0.02 -- (0.02) -- 1.00 1993(6) 1.00 0.02 -- (0.02) -- 1.00 * Annualized. (DAGGER) Cumulative since inception. (1) Commenced operations on June 7, 1994. (2) Commenced operations on July 17, 1994. (3) Commenced operations on June 7, 1995. (4) Commenced operations on June 31, 1994. (5) Commenced operations on June 9, 1994. (6) Commenced operations on June 8, 1992.
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RATIO OF RATIO OF RATIO OF NET INVESTMENT RATIO OF NET INVESTMENT EXPENSES TO INCOME (LOSS) TO NET ASSETS EXPENSES TO INCOME TO AVERAGE NET ASSETS AVERAGE NET ASSETS PORTFOLIO TOTAL END OF AVERAGE AVERAGE (EXCLUDING WAIVERS (EXCLUDING WAIVERS TURNOVER RETURN PERIOD (000) NET ASSETS NET ASSETS AND REIMBURSEMENTS) AND REIMBURSEMENTS) RATE ------ ------------ ----------- --------------- ------------------- ------------------- --------- LIMITED-TERM FEDERAL MORTGAGE SECURITIES FUND Trust Shares 1996 4.84% $ 73,370 0.65% 6.04% 0.84% 5.85% 83.01% 1995(1) 7.50%(DAGGER) 41,823 0.65%* 6.43%* 0.93%* 6.15%* 67.63% Investor Shares 1996 4.59% $ 2,512 0.90% 5.75% 2.25% 4.40% 83.01% 1995(2) 7.45%(DAGGER) 623 0.90%* 6.27%* 7.74%* (0.57%)* 67.63% Flex Shares 1996(3) 4.10%* 1,349 1.25%* 5.38%* 3.59%* 3.04%* 83.01% U.S. GOVERNMENT SECURITIES FUND Trust Shares 1996 2.77% $ 10,277 0.75% 6.05% 1.25% 5.55% 83.38% 1995(4) 8.64%(DAGGER) 3,291 0.75%* 6.67%* 3.33%* 4.09%* 30.39% Investor Shares 1996 2.47% $ 2,396 1.15% 5.68% 2.50% 4.33% 83.38% 1995(5) 8.61%(DAGGER) 589 1.15%* 6.08%* 6.84%* 0.39%* 30.39% Flex Shares 1996(3) 1.42%* $ 2,826 1.66%* 5.18%* 2.86%* 3.98%* 83.38% PRIME QUALITY MONEY MARKET FUND Trust Shares 1996 5.25% $1,050,800 0.58% 5.11% 0.78% 4.91% -- 1995 4.79% 799,189 0.58% 4.77% 0.79% 4.56% -- 1994 2.88% 583,399 0.58% 2.86% 0.79% 2.65% -- 1993(6) 2.92%* 410,991 0.58%* 2.85%* 0.78%* 2.65%* -- Investor Shares 1996 5.08% $ 215,696 0.75% 4.94% 1.00% 4.69% -- 1995 4.62% 157,616 0.75% 4.55% 1.01% 4.29% -- 1994 2.71% 129,415 0.75% 2.67% 0.99% 2.43% -- 1993(6) 2.75%* 61,578 0.75%* 2.68%* 1.02%* 2.41%* -- U.S. GOVERNMENT SECURITIES MONEY MARKET FUND Trust Shares 1996 5.14% $ 325,493 0.61% 5.02% 0.78% 4.85% -- 1995 4.67% 434,111 0.61% 4.64% 0.80% 4.45% -- 1994 2.77% 309,228 0.61% 2.69% 0.77% 2.53% -- 1993(6) 2.79%* 453,567 0.61%* 2.71%* 0.78%* 2.54%* -- Investor Shares 1996 4.99% $ 58,608 0.75% 4.88% 0.99% 4.64% -- 1995 4.51% 46,639 0.75% 4.51% 1.02% 4.24% -- 1994 2.63% 32,395 0.75% 2.54% 0.97% 2.32% -- 1993(6) 2.65%* 16,688 0.75%* 2.57%* 1.11%* 2.21%* -- TAX-EXEMPT MONEY MARKET FUND Trust Shares 1996 3.28% $ 273,613 0.50% 3.23% 0.68% 3.05% -- 1995 3.10% 215,413 0.45% 3.12% 0.70% 2.87% -- 1994 2.08% 143,982 0.42% 2.05% 0.71% 1.76% -- 1993(6) 2.12%* 78,416 0.41%* 2.07%* 0.70%* 1.78%* -- Investor Shares 1996 3.16% $ 95,223 0.62% 3.10% 0.85% 2.87% -- 1995 3.00% 87,647 0.55% 3.00% 0.87% 2.68% -- 1994 1.96% 61,675 0.54% 1.93% 0.88% 1.59% -- 1993(6) 2.00%* 35,209 0.53%* 1.95%* 0.95%* 1.53%* -- (A) Total return figures do not reflect applicable sales loads.
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS. 119 NOTES TO FINANCIAL STATEMENTS ================================================================================ STI CLASSIC FUNDS MAY 31, 1996 1. Organization: The STI Classic Funds (the "Trust") was organized as a Massachusetts Business Trust under a Declaration of Trust dated January 15, 1992. The Trust is registered under the Investment Company Act of 1940, as amended, as an open-end management investment company with nineteen portfolios: the Prime Quality Money Market Fund, the U.S. Government Securities Money Market Fund, the Tax-Exempt Money Market Fund (collectively the "Money Market Funds"), the Investment Grade Bond Fund, the Investment Grade Tax-Exempt Bond Fund, the Short-Term U.S. Treasury Securities Fund, the Short-Term Bond Fund, the Capital Growth Fund, the Value Income Stock Fund, the Sunbelt Equity Fund, the Mid-Cap Equity Fund, the Balanced Fund, the Florida Tax-Exempt Bond Fund, the Georgia Tax-Exempt Bond Fund, the Tennessee Tax-Exempt Bond Fund, the U.S. Government Securities Fund, the Limited-Term Federal Mortgage Securities Fund, the International Equity Fund and the International Equity Index Fund (collectively the "Non-Dollar Funds"). The assets of each portfolio are segregated, and a shareholder's interest is limited to the Fund in which shares are held. Each Fund's prospectus provides a description of the Fund's investment objectives, policies and strategies. 2. Significant Accounting Policies: The following is a summary of significant accounting policies followed by the Trust. SECURITY VALUATION -- Investment securities held by the Money Market Funds are stated at amortized cost, which approximates market value. Investment securities held by the Non-Dollar Funds which are listed on a securities exchange for which market quotations are available are valued at the last quoted sales price on each business day. If there is no such reported sale, these securities and unlisted securities for which market quotations are readily available are valued at the most recently quoted bid price. Foreign securities in the International Equity Fund and the International Equity Index Fund are valued based upon quotations from the primary market in which they are traded. Debt obligations with sixty days or less remaining until maturity may be valued at their amortized cost. FEDERAL INCOME TAXES -- It is each Fund's intention 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. SECURITY TRANSACTIONS AND INVESTMENT INCOME -- Security transactions are accounted for on the date the security is purchased or sold (trade date). Dividend income is recognized on the ex-dividend date and interest income is recognized on an accrual basis. Costs used in determining net realized gains and losses on the sales of investment securities are those of the specific securities sold adjusted for the accretion and amortization of purchase discounts and premiums during the respective holding period. Purchase discounts and premiums on securities held by the Money Market Funds are accreted and amortized ratably to maturity and are included in interest income. Purchase discounts and premiums on securities held by the Non-Dollar Funds are accreted and amortized to maturity using the scientific interest method, which approximates the effective interest method. REPURCHASE AGREEMENTS -- Securities pledged as collateral for repurchase agreements are held by the custodian bank until the respective agreements mature. Provisions of the repurchase agreements ensure that the market value of the collateral, including accrued interest thereon, is sufficient in 120 ================================================================================ the event of default of the counterparty. If the counterparty defaults and the value of the collateral declines or if the counterparty enters into an insolvency proceeding, realization of the collateral by the Funds may be delayed or limited. NET ASSET VALUE PER SHARE -- The net asset value per share of each Fund is calculated on each business day, by dividing the total value of each Fund's assets, less liabilities, by the number of shares outstanding. The maximum offering price per share for Investor shares of the Investment Grade Bond, the Investment Grade Tax-Exempt Bond, the Capital Growth, the Value Income Stock, the Sunbelt Equity, the Mid-Cap Equity, the Balanced, the Florida Tax-Exempt Bond, the Georgia Tax-Exempt Bond, the Tennessee Tax-Exempt Bond, the U.S. Government Securities, the International Equity, and the International Equity Index Funds is equal to the net asset value per share plus a sales load of 3.75%. The maximum offering price per share for Investor shares of the Short-Term U.S. Treasury Securities Fund is equal to the net asset value per share plus a sales load of 1.00%. The maximum offering price per share for Investor shares of the Short-Term Bond Fund is equal to the net asset value per share plus a sales load of 2.00%. The maximum offering price per share for Investor shares of the Limited-Term Federal Mortgage Securities Fund is equal to the net asset value per share plus a sales load of 2.50% Flex Shares of the Funds may be purchased at their net asset value. Shares redeemed within the first year after purchase will be subject to a contingent deferred sales charge ("CDSC") equal to 2.00% of the net asset value of the shares at the time of redemption. The CDSC will not apply to shares redeemed after such time. FOREIGN CURRENCY TRANSLATION -- The books and records of the International Equity and the International Equity Index Funds are maintained in U.S. dollars on the following basis: (I) market value of investment securities, assets and liabilities at the current rate of exchange; and (II) purchases and sales of investment securities, income and expenses at the relevant rates of exchange prevailing on the respective dates of such transactions. The International Equity and the International Equity Index Funds do not isolate that portion of gains and losses on investments in equity securities which is due to changes in the foreign exchange rates from that which is due to changes in market prices of equity securities. The International Equity and the International Equity Index Funds report certain foreign currency related transactions as components of realized and unrealized gains and losses for financial reporting purposes, whereas such components are treated as ordinary income for Federal income tax purposes. OTHER -- Expenses that are directly related to a specific Fund are charged to that Fund. Class specific expenses are borne by that class. Other operating expenses of the Trust are pro-rated to the Funds on the basis of relative net assets. Fund expenses are pro-rated to the respective classes on the basis of relative net assets. Distributions from net investment income of each of the Money Market Funds and the Investment Grade Bond, the Investment Grade Tax-Exempt Bond, the Short-Term U.S. Treasury Securities, the Short-Term Bond, the Florida Tax-Exempt Bond, the Georgia Tax-Exempt Bond, the Tennessee Tax-Exempt Bond, the U.S. Government Securities and the Limited-Term Federal Mortgage Securities Funds are declared on each business day and paid to shareholders on a monthly basis. Distributions from net investment income are declared and paid each calendar quarter by the Capital Growth, the Value Income Stock, the 121 NOTES TO FINANCIAL STATEMENTS ================================================================================ STI CLASSIC FUNDS MAY 31, 1996 Sunbelt Equity, the Mid-Cap Equity and the Balanced Funds. Distributions from net investment income are declared and paid annually by the International Equity and the International Equity Index Funds. Any net realized capital gains on sales of securities are distributed to shareholders at least annually. RECLASSIFICATION ON COMPONENTS OF NET ASSETS -- In accordance with Statement of Position 93-2, "Determination, Disclosure, and Financial Statement Presentation of Income, Capital Gain, and Return of Capital Distribution by Investment Companies", $2,231,493, $1,362,183, $187,659, $87,216, and $52,703 relating to differences attributable to the classification of short-term capital gains and net investment income for tax distribution purposes of the Capital Growth, Sunbelt, Investment Grade Bond, Short-Term Bond, and Short-Term U.S. Treasury Securities Funds, respectively, as of May 31, 1996 have been reclassified between the Fund's accumulated net realized gains/losses and undistributed net income accounts, as appropriate. These reclassifications had no effect on net asset value. 3. Organization Costs and Transactions with Affiliates: The Trust incurred organization costs of approximately $653,100. These costs have been deferred in the accounts of the Funds and are being amortized on a straight line basis over a period of sixty months commencing with operations. These costs include legal fees of approximately $41,100 for organizational work performed by a law firm of which an officer of the Trust is a partner. On March 18, 1992, the Trust sold initial shares of beneficial interest to SEI Financial Management Corporation (the "Administrator"). In the event any of the initial shares of the Trust are redeemed by any holder thereof during the period that the Trust is amortizing its organizational costs, the redemption proceeds payable to the holder thereof by the Trust will be reduced by the unamortized organizational costs in the same ratio as the number of initial shares being redeemed bears to the number of initial shares outstanding at the time of redemption. Certain officers of the Trust are also officers of the Administrator and/or SEI Financial Services Company (the "Distributor"). Such officers are paid no fees by the Trust for serving as officers of the Trust. 4. Administration, Transfer Agency Servicing and Distribution Agreements: The Trust and the Administrator are parties to an Administration Agreement dated May 29, 1995, 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 Annuity Trust) of: .10% up to $1 billion, .07% on the next $4 billion, .05% on the next $3 billion, .045% on the next $2 billion and .04% for over $10 billion. The Trust and Federated Services Company are parties to a Transfer Agency servicing agreement dated May 14, 1994 under which Federated Services Company provides transfer agency services to the Trust. The Trust and the Distributor are parties to a Distribution Agreement dated May 29, 1995. The Distributor will receive no fees for its distribution services under this agreement for the Trust Shares of any Fund. With respect to the Investor Shares and Flex Shares, the Distributor receives amounts, pursuant to a Distribution Plan and (in the case of Flex Shares) a Service Plan, as outlined in the table in footnote 5 under the column titled "Distribution Fee". 5. Investment Advisory and Custodian Agreements: The Trust and STI Capital Management, N.A., ("STI Capital Management, N.A."), Trusco Capital 122 ================================================================================ Management ("Trusco"), the SunTrust Bank, Atlanta and SunTrust Bank, Chattanooga have entered into advisory agreements dated May 29, 1992 (December 20, 1993 in the case of SunTrust Bank, Chattanooga) (the "Advisory Agreements"). On May 26, 1993, the Trust's Board of Trustees approved the termination of Trust Company Bank as investment advisor to the Trust's Tax-Exempt Money Market Fund and approved the appointment of Trusco as advisor to such Fund. The Trust and Trusco subsequently entered into an advisory agreement dated June 15, 1993 (the "Advisory Agreement") which superseded the May 29, 1992 agreement between the parties. Under terms of the respective agreements, the Funds are charged the following annual fees based upon average daily net assets: MAXIMUM FLEX SHARE MAXIMUM DISTRI- MAXIMUM TRUST INVESTOR INVESTOR BUTION FLEX ANNUAL SHARE SHARE SHARE AND SHARE ADVISORY MAXIMUM DISTRI- MAXIMUM SERVICE MAXIMUM FEE EXPENSE BUTION FEE EXPENSE FEE EXPENSE ------- ------- ---------- -------- ------- -------- TRUSCO: International Equity Index Fund* .......... .90% 1.05% .38% 1.45% 1.00% 2.10% Sunbelt Equity Fund ........... 1.15% 1.15% .43% 1.60% 1.00% 2.20% Short-Term Bond Fund ........... .65% .65% .23% .85% 1.00% 1.20% Short-Term U.S. Treasury Securities Fund ........... .65% .65% .18% .80% 1.00% 1.05% U.S. Government Securities Fund ........... .74% .75% .38% 1.15% 1.00% 1.65% Prime Quality Money Market Fund ........... .65% .58% .20% .75% -- -- U.S. Government Securities Money Market Fund ........... .65% .61% .17% .75% -- -- Tax-Exempt Money Market Fund ........... .55% .60% .15% .72% -- -- MAXIMUM FLEX SHARE MAXIMUM DISTRI- MAXIMUM TRUST INVESTOR INVESTOR BUTION FLEX ANNUAL SHARE SHARE SHARE AND SHARE ADVISORY MAXIMUM DISTRI- MAXIMUM SERVICE MAXIMUM FEE EXPENSE BUTION FEE EXPENSE FEE EXPENSE ------- ------- ---------- -------- ------- -------- STI CAPITAL MANAGEMENT, N.A.: Value Income Stock Fund ..... .80% .95% .33% 1.30% 1.00% 2.00% Mid-Cap Equity Fund ........... 1.15% 1.15% .43% 1.60% 1.00% 2.20% Capital Growth Fund ........... 1.15% 1.15% .68% 1.80% 1.00% 2.27% Balanced Fund ... .95% .95% .28% 1.25% 1.00% 2.00% Investment Grade Tax-Exempt Bond Fund ...... .74% .75% .43% 1.15% 1.00% 1.63% Florida Tax-Exempt Bond Fund ...... .65% .65% .18% .85% 1.00% 1.35% Investment Grade Bond Fund ........... .74% .75% .43% 1.15% 1.00% 1.64% Limited-Term Federal Mortgage Securities Fund ........... .65% .65% .23% .90% 1.00% 1.25% International Equity Fund .... 1.25% 1.46% .33% 1.81% 1.00% 2.51% SUNTRUST BANK, ATLANTA: Georgia Tax-Exempt Bond Fund ...... .65% .65% .18% .85% 1.00% 1.35% SUNTRUST BANK, CHATTANOOGA: Tennessee Tax-Exempt Bond Fund ...... .65% .65% .18% .85% 1.00% 1.35% - ----------------- *Trusco and SunBank serve as joint advisors to the International Equity Index Fund. The Investment Advisors, the Administrator and the Distributor have voluntarily agreed to waive all or a portion of their fees (and to reimburse Funds' expenses) in order to limit operating expenses to an amount as outlined in the table above. Fee waivers and expense reimbursements are voluntary and may be terminated at any time. SunTrust Bank, Atlanta, formerly Trust Company Bank, acts as custodian for all the Funds except the International Equity and the International Equity 123 NOTES TO FINANCIAL STATEMENTS ================================================================================ STI CLASSIC FUNDS MAY 31, 1996 Index Funds. The Bank of New York serves as custodian to the International Equity Fund and the Bank of California serves as custodian to the International Equity Index Fund. Fees of the Custodians are paid on the basis of the net assets of the Funds. The Custodians play no role in determining the investment policies of the Trust or which securities are to be purchased or sold in the Funds. 6. Investment Transactions: The cost of purchases and the proceeds from sales of securities, excluding short-term investments and U.S. Government Securities, for the period ended May 31, 1996, were as follows: PURCHASES SALES (000) (000) ---------- ---------- Value Income Stock Fund ..................... $1,493,020 $1,485,530 Mid-Cap Equity Fund ......................... 289,235 205,572 Capital Growth Fund ......................... 1,729,362 1,898,664 Balanced Fund ............................... 117,600 110,702 International Equity Index Fund ............. 29,233 31,167 International Equity Fund ................... 361,787 171,233 Sunbelt Equity Fund ......................... 387,532 349,431 Investment Grade Tax-Exempt Bond Fund ....... 660,206 618,286 Florida Tax-Exempt Bond Fund ................ 38,105 15,798 Tennessee Tax-Exempt Bond Fund .............. 4,376 1,626 Georgia Tax-Exempt Bond Fund ................ 27,200 12,685 Investment Grade Bond Fund .................. 416,076 456,626 Short-Term Bond Fund ........................ 67,798 50,754 Short-Term U.S. Treasury Securities Fund .... -- -- Limited-Term Federal Mortgage Securities Fund -- -- U.S. Government Securities Fund ............. -- -- The cost of purchases and proceeds from sales of U.S. Government Securities were: PURCHASES SALES (000) (000) --------- ---------- Value Income Stock Fund ..................... -- -- Mid-Cap Equity Fund ......................... -- -- Capital Growth Fund ......................... -- -- Balanced Fund ............................... $ 54,234 $ 36,688 International Equity Index Fund ............. -- -- International Equity Fund ................... -- -- Sunbelt Equity Fund ......................... -- -- Investment Grade Tax-Exempt Bond Fund ....... -- -- Florida Tax-Exempt Bond Fund ................ -- -- Tennessee Tax-Exempt Bond Fund .............. -- -- Georgia Tax-Exempt Bond Fund ................ -- -- PURCHASES SALES (000) (000) --------- ---------- Investment Grade Bond Fund .................. $828,696 $619,825 Short-Term Bond Fund ........................ 84,205 67,661 Short-Term U.S. Treasury Securities Fund .... 15,534 14,800 Limited-Term Federal Mortgage Securities Fund 76,783 42,100 U.S. Government Securities Fund ............. 19,279 8,016 The aggregate gross unrealized appreciation and depreciation for securities held by the Funds at May 31, 1996, and the total cost of securities for Federal income tax purposes were as follows: VALUE INCOME MID-CAP CAPITAL STOCK EQUITY GROWTH FUND FUND FUND (000) (000) (000) ------------ -------- -------- Aggregate gross unrealized appreciation ................... $128,322 $ 25,315 $150,430 Aggregate gross unrealized depreciation ................... (7,858) (4,392) (13,470) ---------- -------- ---------- Net unrealized appreciation ...... $120,464 $ 20,923 $136,960 ========== ======== ========== Total cost of securities for Federal income tax purposes .... $1,287,255 $260,367 $1,042,462 ========== ======== ========== INTERNATIONAL INTERNATIONAL SUNBELT BALANCED EQUITY EQUITY EQUITY FUND INDEX FUND FUND FUND (000) (000) (000) (000) -------- ------------- ------------- -------- Aggregate gross unrealized appreciation ............... $ 8,701 $11,273 $ 15,901 $113,112 Aggregate gross unrealized depreciation ............... (2,017) (2,306) (2,284) (12,731) -------- ------- -------- -------- Net unrealized appreciation . $ 6,684 $ 8,967 $ 13,617 $100,381 ======== ======= ======== ======== Total cost of securities for Federal income tax purposes $114,332 $87,565 $195,658 $341,821 ======== ======= ======== ======== INVESTMENT GRADE TAX-EXEMPT FLORIDA TENNESSEE BOND TAX-EXEMPT TAX-EXEMPT FUND BOND FUND BOND FUND (000) (000) (000) ---------- ---------- ---------- Aggregate gross unrealized appreciation .. $ 482 $ 246 $ 43 Aggregate gross unrealized depreciation .. (1,178) (603) (76) -------- ------- ------ Net unrealized depreciation .............. $ (696) $ (357) $ (33) ======== ======= ====== Total cost of securities for Federal income tax purposes ............ $158,666 $36,007 $5,325 ======== ======= ====== 124 ================================================================================ INVESTMENT GEORGIA GRADE SHORT- TAX-EXEMPT BOND TERM BOND FUND FUND FUND (000) (000) (000) --------- ---------- --------- Aggregate gross unrealized appreciation . $ 114 $ 3,382 $ 14 Aggregate gross unrealized depreciation . (694) (13,635) (1,342) ------- -------- ------- Net unrealized depreciation ............. $ (580) $(10,253) $(1,328) ======= ======== ======= Total cost of securities for Federal income tax purposes ........... $30,682 $661,060 $95,244 ======= ======== ======= SHORT- LIMITED- TERM TERM U.S. FEDERAL U.S. TREASURY MORTGAGE GOVERNMENT SECURITIES SECURITIES SECURITIES FUND FUND FUND (000) (000) (000) --------- ---------- ---------- Aggregate gross unrealized appreciation . $ 19 $ 301 $ 37 Aggregate gross unrealized depreciation . (137) (749) (465) ------- -------- ------- Net unrealized depreciation ............. $ (118) $ (448) $ (428) ======= ======== ======= Total cost of securities for Federal income tax purposes ........... $16,235 $341,253 $15,964 ======= ======== ======= Subsequent to October 31, 1995, the Funds recognized net capital losses for tax purposes that have been deferred to 1996 and can be used to offset future capital gains at May 31, 1996. The Funds also had capital losses carryforward at May 31, 1996, to the extent provided in the regulations for Federal income tax as follows: CAPITAL LOSS CARRYOVER EXPIRES EXPIRES EXPIRES 5/31/96 2002 2003 2004 FUND (000) (000) (000) (000) ------------- ------- ------- ------- Investment Grade Bond Fund $6,806 -- $6,806 -- Short-Term U.S. Treasury Fund 232 -- 203 $ 29 Prime Quality Money Market Fund 176 -- 3 173 U.S. Government Securities Money Market Fund 11 -- -- 11 Tax-Exempt Money Market Fund 14 $9 1 4 CAPITAL LOSS POST OCTOBER UTILIZED DURING DEFERRED LOSSES THE CURRENT YEAR FUND (000) (000) --------------- ---------------- Capital Growth Fund -- $ 1,541 Sunbelt Equity Fund -- 3,762 Balanced Fund -- 2,002 Investment Grade Bond Fund -- 11,848 Georgia Tax-Exempt Bond Fund -- 12 Tennessee Tax-Exempt Bond Fund -- 3 Short-Term Bond Fund -- 288 Limited Term Federal Mortgage Securities Fund -- 15 U.S. Government Securities Fund $37 -- Prime Quality Money Market Fund 82 -- U.S. Govenment Securities Money Market Fund -- 59 7. Concentration of Credit Risk: The Prime Quality Money Market Fund Invests primarily in high quality money market instruments rated in the highest short-term rating category by Standard & Poor's Corporation ("S&P") or Moody's Investors Services, Inc. ("Moody's") or, if not rated, are determined by the Advisor to be of comparable quality. The U.S. Government Securities Money Market Fund invests exclusively in U.S. Treasury obligations, U.S. Government subsidiary corporation securities which are backed by the full faith and credit of the U.S. Government and repurchase agreements with approved dealers collateralized by U.S. Treasury securities and U.S. Government subsidiary corporation securities. The Tax-Exempt Money Market Fund invests in high quality, U.S. dollar denominated municipal securities rated in one of the two highest short-term rating categories or, if not rated, are determined by the Advisor to be of comparable quality. The Investment Grade Bond Fund, the Short-Term Bond Fund and the Balanced Fund invest primarily in investment grade obligations rated at least BBB or better by S&P or Baa or better by Moody's or, if not rated, are determined by the Advisor to be of comparable quality. The Investment Grade Tax-Exempt Fund invests primarily in investment grade municipal securities. Municipal 125 NOTES TO FINANCIAL STATEMENTS (concluded) ================================================================================ STI CLASSIC FUNDS MAY 31, 1996 securities must be rated BBB or better by S&P or Baa or better by Moody's in the case of bonds; SP-1, SP-2 or MIG-1, MIG-2 in the case of notes; A-1, A-2 or P-1, P-2 in the case of commercial paper; and VMIG-1, VMIG-2 in the case of variable rate demand obligations. The Short-Term U.S. Treasury Securities Fund invests exclusively in obligations issued by the U.S. Treasury with a maximum remaining maturity of 3 years or less. The Florida Tax-Exempt Bond Fund, the Georgia Tax-Exempt Bond Fund, and the Tennessee Tax-Exempt Bond Fund invest primarily in municipal bonds concentrated in each of their respective states. Municipal securities must be rated BBB or better by S&P or Baa or better by Moody's in the case of bonds; A-1, A-2 or P-1, P-2 in the case of tax-exempt commercial paper; and VMIG-1, VMIG-2 in the case of variable rate demand obligations. The U.S. Government Securities Fund invests primarily in obligations issued or guaranteed by the U.S. Government or its agencies or instrumentalities, including mortgage backed securities. The Limited-Term Federal Mortgage Securities Fund invests in mortgage related securities issued or guaranteed by U.S. Government agencies. Up to 35% of the U.S. Government Securities Fund and the Limited-Term Federal Mortgage Securities Fund may be invested in corporate, or government bonds that carry a rating of BBB or better by S&P or Baa or better by Moody's. The ability of the issuers of the securities held by the Funds to meet their obligations may be affected by economic developments in a specific industry, state or region, or by changing business conditions. The summary of credit quality ratings for the securities held by the Funds as rated by S & P at May 31, 1996 were as follows: U.S. GOV'T. PRIME QUALITY SECURITIES TAX-EXEMPT MONEY MARKET MONEY MARKET MONEY MARKET FUND FUND FUND ------------- ------------ ------------ AAA ................... 7.5% 35.0% 5.5% AA .................... 0.2% -- 6.9% A ..................... 12.7% -- 5.4% A-1 ................... 57.2% -- 51.1% A-2 ................... 2.9% -- -- A1+ ................... -- -- 1.1% SP-1. ................. -- -- 12.5% Not Rated ............. 3.7% -- 16.5% Repurchase Agreement .. 15.8% 65.0% -- Cash Equivalents ...... -- -- 1.0% ------------- ------------ ------------ Totals .............. 100.0% 100.0% 100.0% ============= ============ ============ SHORT-TERM INVESTMENT INVESTMENT U.S. GRADE GRADE SHORT-TERM TREASURY BOND TAX-EXEMPT BOND SECURITIES FUND BOND FUND FUND FUND ---------- ---------- ---------- ---------- AAA ...................... 70.6% 57.7% 68.6% 96.9% AA ....................... 3.1% 22.7% 6.1% A ........................ 10.1% 9.4% 12.7 -- A-3 ...................... -- -- 2.1% -- BBB ...................... 11.8% 2.2% 7.7% -- Not Rated ................ -- 3.3% -- -- Repurchase Agreement ..... 4.4% -- -- -- Cash Equivalents ......... -- 4.7% 2.8% 3.1% ---------- ---------- ---------- ---------- Totals ................. 100.0% 100.0% 100.0% 100.0% ========== ========== ========== ========== LTD.-TERM FEDERAL FLORIDA TENNESSEE GEORGIA MORTGAGE U.S. GOV'T BALANCED TAX-EXEMPT TAX-EXEMPT TAX-EXEMPT SECURITIES SECURITIES FUND BOND FUND BOND FUND BOND FUND FUND FUND -------- ---------- ---------- ---------- ---------- ----------- AAA ......... 27.8% 81.2% 53.3% 35.7% 88.4% 92.5% AA .......... .8% 11.5% 32.2% 41.5% -- -- A ........... 3.7% 1.9% 4.9% 8.7% -- -- A-1 ......... -- -- -- -- -- -- A-2 ......... -- -- -- -- -- -- A-3 ......... -- -- -- -- -- -- BBB ......... 7.6% -- -- -- -- -- BB .......... -- -- -- -- -- -- S - 1 ....... -- -- -- -- -- -- Equities .... 56.2% -- -- -- -- -- Not Rated ... -- 1.3% 8.6% 8.6% 3.8% -- Repurchase Agreement . 3.9% -- -- -- 7.1% -- Cash Equivalents -- 4.1% 0.7% 5.5% 0.7% 7.5% ------ ------ ------ ------ ------ ------ Totals .... 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% ====== ====== ====== ====== ====== ====== 126 ================================================================================ The summary of credit quality ratings for the securities held by the Funds as rated by Moody's at May 31, 1996 were as follows: U.S. GOV'T. PRIME QUALITY SECURITIES TAX-EXEMPT MONEY MARKET MONEY MARKET MONEY MARKET FUND FUND FUND ------------- ------------ ------------ Aaa .................. 9.9% 35.0% 6.4% Aa ................... 0.4% -- 10.5% A .................... -- -- 1.3% A-1 .................. 3.0% -- 2.5% A-2 .................. 8.3% -- 2.2% A-3 .................. 0.8% -- -- P-1 .................. 57.2% -- 14.2% P-2. ................. 2.9% -- -- MIG-1 ................ -- -- 12.9% VMIG-1 ............... -- -- 30.4% Not Rated ............ 1.7% -- 18.5% Repurchase Agreement . 15.8% 65.0% -- Cash Equivalents ..... -- -- 1.1% ------------- ------------ ------------ Totals ............ 100.0% 100.0% 100.0% ============= ============ ============ INVESTMENT SHORT-TERM GRADE U.S. INVESTMENT TAX-EXEMPT SHORT-TERM TREASURY GRADE BOND BOND SECURITIES BOND FUND FUND FUND FUND ---------- ---------- ---------- ---------- Aaa ................ 70.6% 61.5% 68.6% 96.9% Aa ................. 5.5% 16.0% 6.1% -- A .................. -- 5.0% 2.1% -- A-1 ................ 5.3% 4.8% 2.9% -- A-2 ................ 4.6% -- 6.3% -- A-3 ................ -- -- 6.3% -- Baa ................ 9.6% -- 4.9% -- Not Rated .......... -- 7.9% -- -- Repurchase Agreement 4.4% -- -- -- Cash Equivalents ... -- 4.8% 2.8% 3.1% ---------- ---------- ---------- ---------- Totals .......... 100.0% 100.0% 100.0% 100.0% ========== ========== ========== ========== LTD.-TERM FEDERAL FLORIDA TENNESSEE GEORGIA MORTGAGE U.S. GOV'T BALANCED TAX-EXEMPT TAX-EXEMPT TAX-EXEMPT SECURITIES SECURITIES FUND BOND BOND FUND BOND FUND FUND FUND -------- ---------- ---------- ---------- ---------- ---------- Aaa ....... 27.8% 80.4% 51.1% 41.7% 92.2% 92.5% Aa ........ 1.6% 11.5% 25.4% 32.3% -- -- A ......... -- -- 1.8% 5.1% -- -- A-1 ....... 2.0% -- 10.7% 11.1% -- -- A-2 ....... 1.7% -- -- -- -- -- Baa ....... 6.5% 3.5% 10.3% -- -- -- Ba-1 ...... 0.3% -- -- -- -- -- Not Rated . -- 0.5% -- 4.3% -- -- Equities .. 56.2% -- -- -- -- -- Repurchase Agreement 3.9% -- -- -- 7.1% -- Cash Equivalents -- 4.1% 0.7% 5.5% 0.7% 7.5% ------ ------ ------ ------ ------ ------ Totals .. 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% ====== ====== ====== ====== ====== ====== 127 NOTICE TO SHAREHOLDERS UNAUDITED OF STI CLASSIC FUNDS For shareholders that do not have a May 31, 1996 tax year end, this notice is for informational purposes only. For shareholders with a May 31, 1996 tax year end, please consult your tax advisor as to the pertinence of this notice. For the fiscal year ended May 31, 1996, each portfolio is designating the following items with regard to distributions paid during the year:
(A) (B) (C) LONG TERM ORDINARY CAPITAL GAINS INCOME TOTAL DISTRIBUTIONS DISTRIBUTIONS DISTRIBUTIONS PORTFOLIO (TAX BASIS) (TAX BASIS) (TAX BASIS) - -------- ---------- ------------- ------------- Value Income Stock 7.25% 92.75% 100% Mid-Cap Equity 20.04% 79.96% 100% Capital Growth 20.89% 79.11% 100% Balanced 23.40% 76.60% 100% International Equity Index 9.68% 90.32% 100% International Equity 0% 0% 0% Sunbelt Equity 93.93% 6.07% 100% Investment Grade Tax-Exempt Bond 0% 100% 100% Florida Tax-Exempt Bond 1.63% 98.37% 100% Tennessee Tax-Exempt Bond 0% 100% 100% Georgia Tax-Exempt Bond 3.58% 96.42% 100% Investment Grade Bond 0% 100% 100% Short-Term Bond 0% 100% 100% Short-Term U.S. Treasury Securities 0% 100% 100% Limited-Term Federal Mortgage Securities 0% 100% 100% U.S. Government Securities 0% 100% 100% Prime Quality Money Market 0% 100% 100% U.S. Government Securities Money Market 0% 100% 100% Tax-Exempt Money Market 0% 100% 100%
(D) (E) QUALIFYING TAX-EXEMPT PORTFOLIO DIVIDENDS(1) INTEREST - -------- ------------ ---------- Value Income Stock 97.00% 0% Mid-Cap Equity 100.00% 0% Capital Growth 100.00% 0% Balanced 23.83% 0% International Equity Index 0% 0% International Equity 0% 0% Sunbelt Equity 0% 0% Investment Grade Tax-Exempt Bond 0% 95% Florida Tax-Exempt Bond 0% 98% Tennessee Tax-Exempt Bond 0% 97% Georgia Tax-Exempt Bond 0% 98% Investment Grade Bond 0% 95% Short-Term Bond 0% 0% Short-Term U.S. Treasury Securities 0% 0% Limited-Term Federal Mortgage Securities 0% 0% U.S. Government Securities 0% 0% Prime Quality Money Market 0% 0% U.S. Government Securities Money Market 0% 0% Tax-Exempt Money Market 0% 100% - ---------- (1) Qualifying dividends represent dividends which qualify for the corporate dividends received deduction. * Items (A) and (B) are based on a percentage of each portfolio's total distributions. ** Item (D) is based on the net income of the portfolio. *** Item (E) is based on the gross income of the portfolio. 128 STI CLASSIC INTERNATIONAL EQUITY INDEX FUND UNAUDITED FOR TAXPAYERS FILING ON A CALENDAR YEAR BASIS, THIS NOTICE IS FOR INFORMATIONAL PURPOSES ONLY. Dear STI Classic International Equity Index Fund Shareholder: The following is important information regarding foreign tax credits. The STI Classic International Equity Index Fund has made an election under Section 853 of the Internal Revenue Code to pass through the benefit of foreign tax credits to its shareholders. The information provided below is pertinent to taxpayers who meet the following criteria: 1) File a U.S. Federal Income Tax Return on the basis of fiscal year ended May 31, 1996, and 2) Held shares of the Fund on the dividend record date of December 28, 1995. The amount per share of income from and foreign taxes paid to each country is listed in the following schedule:
TRUST SHARES INVESTOR SHARES FLEX SHARES GROSS FOREIGN GROSS FOREIGN GROSS FOREIGN COUNTRY DIVIDEND TAXES PAID DIVIDEND TAXED PAID DIVIDEND TAXED PAID ------ -------- ---------- -------- ---------- -------- ---------- Australia 0.0068 0.0007 0.0067 0.0007 0.0056 0.0007 Austria 0.0013 0.0002 0.0013 0.0002 0.0011 0.0002 Belgium 0.0056 0.0002 0.0055 0.0002 0.0045 0.0002 Denmark 0.0024 0.0014 0.0024 0.0014 0.0022 0.0014 Finland 0.0014 0.0003 0.0013 0.0003 0.0011 0.0003 France 0.0174 0.0006 0.0170 0.0006 0.0140 0.0006 Germany 0.0216 0.0032 0.0211 0.0032 0.0179 0.0032 Hong Kong 0.0018 0.0000 0.0017 0.0000 0.0014 0.0000 Italy 0.0098 0.0021 0.0096 0.0021 0.0083 0.0021 Japan 0.0223 0.0047 0.0219 0.0047 0.0187 0.0047 Netherlands 0.0086 0.0016 0.0084 0.0016 0.0072 0.0016 Norway 0.0016 0.0003 0.0015 0.0003 0.0013 0.0003 Spain 0.0115 0.0024 0.0112 0.0024 0.0096 0.0024 Sweden 0.0023 0.0005 0.0023 0.0005 0.0019 0.0005 Switzerland 0.0035 0.0007 0.0035 0.0007 0.0030 0.0007 United Kingdom 0.0261 0.0053 0.0257 0.0053 0.0220 0.0053 United States 0.0085 0.0000 0.0083 0.0000 0.0069 0.0000 ------ ------ ------ ------ ------ ------ 0.1525 0.0242 0.1494 0.0242 0.1267 0.0242
Please consult your tax advisor for proper treatment of this information. 129 NOTES 130 Investment Advisors: STI Capital Management, N.A. Trusco Capital Management, Inc. SunTrust Bank, Chattanooga, N.A. SunTrust Bank, Atlanta 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 affiliates of SunTrust Banks, Inc. Distributor: SEI Financial Services Company This information must be preceded or accompanied by a current prospectus for each Fund described. -----END PRIVACY-ENHANCED MESSAGE-----