-----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, DyTRmndNXxIFd0XVY4rmyULIfNmfg34BL3uFRYJyWEl/PLaTq4BU1ZYH/iYc9EXv tmVxf8OAEXLoPVkgD0gNkQ== 0000935069-99-000009.txt : 19990129 0000935069-99-000009.hdr.sgml : 19990129 ACCESSION NUMBER: 0000935069-99-000009 CONFORMED SUBMISSION TYPE: N-30D PUBLIC DOCUMENT COUNT: 1 CONFORMED PERIOD OF REPORT: 19981130 FILED AS OF DATE: 19990128 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: SEC FILE NUMBER: 811-06557 FILM NUMBER: 99515602 BUSINESS ADDRESS: STREET 1: 2 OLIVER STREET CITY: BOSTON STATE: MA ZIP: 02109 BUSINESS PHONE: 6109896602 MAIL ADDRESS: STREET 1: 530 E SWEDESFORD ROAD CITY: WAYNE STATE: PA ZIP: 19087-1693 N-30D 1 STI CLASSIC SEMI-ANNUAL REPORT Semi-Annual - -------------------------------------------------------------------------------- Financial Report - -------------------------------------------------------------------------------- STI Classic Funds - -------------------------------------------------------------------------------- A Family of Mutual Funds - -------------------------------------------------------------------------------- November 30, 1998 STI Classic Funds Investment Advisors STI Capital Management, N.A. Trusco Capital Management, Inc. 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 Investments Distribution Co. This information must be preceded or accompanied by a current prospectus for each Fund described. Dear Valued STI Classic Funds Shareholder: As of November 30, 1998, your STI Classic Funds' assets totaled $12.2 billion or 4.2% more than the totals reported to you as of May 31, 1998, the Funds' fiscal year end. With the U.S. economic expansion now seven years old, investors have been sensitive to any developments that could derail the expansion. This concern resulted in a significant stock market correction this past summer due to serious economic/financial difficulties in Asia and Russia. However, predictions of a U.S. recession proved to be premature and the U.S. economy remains relatively strong based on low inflation and declining interest rates, which have stimulated consumer demand. Further, continued low inflation has allowed the Federal Reserve the flexibility to lower interest rates when necessary. The STI Classic Funds introduced two new funds in the fourth quarter of this year: the Small Cap Growth Stock Fund, a growth fund and the Tax Sensitive Growth Stock Fund, a tax efficient fund. With 24 funds now available, the STI Classic Funds are well positioned, as we approach 1999, with a broad range of high quality mutual funds that utilize a time tested and disciplined investment management approach. Sincerely, /s/ Anthony R. Gray ---------------------------------- Anthony R. Gray Chairman, Chief Investment Officer STI Capital Management, N.A. /s/ Douglas S. Phillips, CFA ----------------------------------- Douglas S. Phillips, CFA President, Chief Investment Officer Trusco Capital Management, Inc. STATEMENT OF NET ASSETS - -------------------------------------------------------------------------------- STI CLASSIC FUNDS November 30, 1998 Balanced Fund - --------------------------------------------------------------------- Shares Value (000) - --------------------------------------------------------------------- Common Stocks (54.7%) Basic Materials (1.6%) Air Products & Chemicals $ 58,900 $ 2,246 Ecolab 6,800 210 Imperial Chemical ADR 7,300 276 Monsanto 18,700 847 Morton International 12,500 368 ---------- 3,947 ---------- Capital Goods (7.2%) Allied Signal 7,300 321 Allied Waste Industries* 21,600 440 AMP 4,600 203 Autozone* 3,800 114 Eastern Environmental Services 3,000 65 General Electric 60,000 5,430 Honeywell 19,600 1,567 Lockheed Martin 8,600 892 Republic Services, Cl A* 24,100 449 Textron 8,400 653 Thermo Electron* 9,700 164 Tyco International 37,998 2,501 U.S. Filter* 39,425 872 United Technologies 21,500 2,305 Waste Management* 51,140 2,193 ---------- 18,169 ---------- Communication Services (1.5%) Alltel 1,400 74 Century Telephone Enterprises 16,500 940 Ericsson Telephone ADR 12,500 345 Fox Entertainment Cl A* 14,900 352 GTE 3,500 217 MCI WorldCom* 31,144 1,837 ---------- 3,765 ---------- Consumer Cyclicals (10.6%) American Greetings, Cl A 21,000 889 Carnival 80,200 2,767 - --------------------------------------------------------------------- Shares Value (000) - --------------------------------------------------------------------- Consumer Cyclicals--continued Cendant* 59,058 $ 1,122 Consolidated Stores* 14,500 312 Costco* 38,600 2,422 CVS 42,000 2,074 Dayton Hudson 7,300 328 Dollar General 19,100 455 Federated Department Stores* 14,800 617 Gannett 800 52 Hasbro 25,900 908 Lear* 25,200 973 Lowe's Companies 66,700 2,819 Masco 74,400 2,148 Mattel 36,850 1,274 McGraw-Hill 13,200 1,181 New York Times, Cl A 14,900 463 Office Depot* 64,700 2,103 Promus Hotel* 6,600 220 Republic Industries* 6,400 109 Royal Caribbean 3,000 91 Saks* 18,900 520 Service International 20,000 747 SPX 6,200 360 Stanley Works 3,900 119 Starwood Lodging Trust REIT 11,955 363 Tandy 26,900 1,212 ---------- 26,648 ---------- Consumer Staples (8.1%) American Stores 5,300 178 Avon Products 33,900 1,377 Bestfoods 3,000 174 Campbell Soup 8,800 503 Colgate-Palmolive 12,000 1,027 ConAgra 19,176 603 Flowers Industries 28,000 639 Fort James 21,300 833 Fred Meyer* 8,700 443 2 - -------------------------------------------------------------------------------- Unaudited - --------------------------------------------------------------------- Shares Value (000) - --------------------------------------------------------------------- Consumer Staples--continued Gillette 9,200 $ 423 Hershey Foods 3,200 215 McDonald's 5,000 350 Newell 10,800 478 PepsiCo 7,600 294 Philip Morris 28,800 1,611 Procter & Gamble 18,600 1,630 Ralston Purina 52,800 1,838 Rite Aid 42,800 1,985 Rubbermaid 12,300 407 Safeway* 14,000 739 Sara Lee 35,700 2,084 Tele-Communications, Cl A* 23,100 976 US Foodservice* 19,680 904 Viacom, Cl B* 7,400 493 William Wrigley Jr 2,600 229 ---------- 20,433 ---------- Energy (2.2%) British Petroleum ADR 7,307 673 Conoco* 14,700 348 Halliburton 40,900 1,201 Mobil 6,600 569 Texaco 24,000 1,381 Union Pacific Resources Group 23,622 264 Unocal 11,900 403 Weatherford International* 15,345 280 Williams Companies 9,700 279 ---------- 5,398 ---------- Financials (7.9%) Allstate 2,700 110 American International Group 7,075 665 AmSouth Bancorp 800 34 Associates First Capital 8,100 631 Bank One 35,189 1,806 Bank United, Cl A 6,900 303 BankAmerica 21,832 1,423 - --------------------------------------------------------------------- Shares Value (000) - --------------------------------------------------------------------- Financials--continued BankBoston 7,900 $ 329 Citigroup 149 7 Colonial Bancgroup 13,100 162 Compass Bancshares 6,800 253 Conseco 34,100 1,130 FHLMC 21,000 1,271 First American of Tennessee 3,600 156 First Security 5,000 101 First Union 4,300 261 First Virginia 1,700 76 Fleet Financial Group 1,300 54 FNMA 7,000 509 Household International 29,599 1,158 KeyCorp 15,700 482 Mellon Bank 33,400 2,102 MGIC Investment 13,300 584 North Fork Bancorporation 8,100 171 PNC Bank 30,600 1,578 Regions Financial 4,800 186 SouthTrust 3,000 110 Summit Bancorp 11,100 464 Sunamerica 15,100 1,197 Torchmark 32,700 1,243 Waddell & Reed, Cl A* 8 -- Waddell & Reed, Cl B* 8,008 187 Washington Mutual 12,176 472 Wells Fargo 13,700 493 ---------- 19,708 ---------- Health Care (6.9%) Abbott Laboratories 42,700 2,050 Allegiance 15,100 609 Alza, Cl A* 3,100 162 American Home Products 11,400 607 Arterial Vascular Engineering 1,200 59 Baxter International 14,700 934 Becton Dickinson 8,100 344 3 STATEMENT OF NET ASSETS - -------------------------------------------------------------------------------- STI CLASSIC FUNDS November 30, 1998 Balanced Fund--continued - --------------------------------------------------------------------- Shares Value (000) - --------------------------------------------------------------------- Health Care--continued Boston Scientific* 11,000 $ 545 Bristol-Myers Squibb 31,800 3,897 Eli Lilly 11,600 1,040 Forest Laboratories* 8,600 401 Healthsouth* 50,328 676 Johnson & Johnson 2,700 219 Merck 16,900 2,617 Pfizer 2,100 234 Safeskin* 5,100 97 Tenet Healthcare* 38,300 1,132 Warner Lambert 23,200 1,752 ---------- 17,375 ---------- Technology (8.1%) 3Com* 7,700 298 Ceridian* 27,300 1,776 Cisco Systems* 36,900 2,781 Compaq Computer 12,500 406 EMC* 17,000 1,233 HBO 10,500 262 Hewlett Packard 7,600 477 IBM 20,500 3,383 Intel 11,800 1,270 Lucent Technologies 7,808 672 Microsoft* 23,800 2,904 Networks Associates* 28,586 1,454 Northern Telecom 9,300 434 Sun Microsystems* 11,800 874 Tellabs* 700 38 Texas Instruments 6,300 481 W.W. Grainger 13,800 583 Xerox 8,900 957 ---------- 20,283 ---------- - --------------------------------------------------------------------- Shares/Face Amount(000) Value (000) - --------------------------------------------------------------------- Transportation (0.6%) Burlington Northern Santa Fe 19,100 $ 649 Delta Air Lines 12,800 687 Trans World Air* 5,800 262 ---------- 1,598 ---------- Total Common Stocks (Cost $109,004) 137,324 ---------- Preferred Stocks (0.7%) Finance (0.2%) Conseco Financial Trust* CV to 0.9363 Shares 10,000 414 ---------- Technology (0.5%) Microsoft, CV to 1 Share 12,500 1,217 ---------- Total Preferred Stocks (Cost $998) 1,631 ---------- Corporate Obligations (18.0%) Finance (10.6%) Bank of Boston 6.625%, 12/01/05 $ 500 521 Bear Stearns 6.250%, 07/15/05 1,000 978 Capital One 6.530%, 11/26/99 1,450 1,461 Conseco 6.400%, 06/15/01 1,350 1,375 6.800%, 06/15/05 1,100 1,056 Countrywide Home Loan, Ser F, MTN 6.510%, 02/11/05 2,300 2,303 Finova Capital 6.250%, 11/01/02 1,200 1,203 Ford Motor Credit 6.500%, 02/28/02 2,100 2,166 Great Western Financial 8.600%, 02/01/02 800 861 4 - -------------------------------------------------------------------------------- Unaudited - --------------------------------------------------------------------- Face Amount (000) Value (000) - --------------------------------------------------------------------- Finance--continued Homeside Lending, MTN 6.875%, 05/15/00 $ 1,600 $ 1,632 Household Finance 6.500%, 11/15/08 750 773 Liberty Property, MTN 6.600%, 06/05/02 1,100 1,126 Merrill Lynch 6.875%, 11/15/18 850 893 Merrill Lynch, MTN 6.060%, 10/15/01 2,300 2,326 Morgan Stanley, Ser C, MTN, Callable 3/9/01 @ 100 6.090%, 03/09/01 1,500 1,513 Provident 7.000%, 07/15/18 1,650 1,609 Salomon 7.300%, 05/15/02 1,750 1,824 Salomon Smith Barney 6.250%, 01/15/05 1,750 1,757 Sprint Capital 6.125%, 11/15/08 1,225 1,245 ---------- 26,622 ---------- Industrial (7.4%) American Home Products 7.900%, 02/15/05 1,850 2,079 Bausch & Lomb 6.750%, 12/15/04 1,000 1,056 Bausch & Lomb, Callable 08/01/01 @ 100 6.150%, 08/01/11 1,200 1,209 Dillards 6.430%, 08/01/04 2,700 2,788 Ikon Capital, MTN 6.730%, 06/15/01 1,000 1,028 Philip Morris 7.250%, 09/15/01 2,100 2,195 7.500%, 04/01/04 1,000 1,063 - --------------------------------------------------------------------- Face Amount (000) Value (000) - --------------------------------------------------------------------- Industrial--continued Praxair 6.900%, 11/01/06 $ 1,250 $ 1,291 Western Resources 6.250%, 08/15/03 2,000 2,020 Worldcom 6.125%, 08/15/01 3,850 3,908 ---------- 18,637 ---------- Total Corporate Obligations (Cost $44,512) 45,259 ---------- Convertible Bonds (1.1%) Mascotech, CV to 32.2580 Shares, 4.500%, 12/15/03 1,000 806 Network Associates, CV to 8.5380 Shares, Callable 02/13/03 @ 49.452 (A) (B) 0.000%, 02/13/18 1,000 480 Office Depot, CV to 21.2340 Shares, 0.000%, 11/01/08 1,000 794 Suiza Cap Trust Pfd, CV to 0.639 Share 5.500%, 04/01/28 4 153 WMX Technologies, CV to 26.078 Shares 2.000%, 01/24/05 700 662 ---------- Total Convertible Bonds (Cost $2,897) 2,895 ---------- U.S. Agency Mortgage-Backed Obligations (10.8%) FHLMC 8.000%, 06/01/02 197 201 7.500%, 09/01/03 594 607 5.125%, 10/15/08 2,500 2,465 FNMA 7.000%, 10/01/03 3,049 3,114 5 STATEMENT OF NET ASSETS - -------------------------------------------------------------------------------- STI CLASSIC FUNDS November 30, 1998 Balanced Fund--concluded - --------------------------------------------------------------------- Face Amount (000) Value (000) - --------------------------------------------------------------------- U.S. Agency Mortgage-Backed Obligations--continued GNMA 8.000%, 12/15/22 $ 11,200 $ 11,662 GNMA TBA 7.000%, 11/19/28 9,000 9,211 ---------- Total U.S. Agency Mortgage- Backed Obligations (Cost $27,177) 27,260 ---------- U.S. Treasury Obligations (6.9%) U.S. Treasury Bonds 7.500%, 11/15/16 5,050 6,323 8.125%, 08/15/19 7,500 10,092 U.S. Treasury Note 5.625%, 12/31/02 965 998 ---------- Total U.S. Treasury Obligations (Cost $14,884) 17,413 ---------- Regulated Investment Company (0.2%) Dollar General, STRYPES* 14,100 490 ---------- Total Regulated Investment Company (Cost $556) 490 ---------- Repurchase Agreement (11.3%) Merrill Lynch 5.40%, dated 11/30/98, matures 12/01/98, repurchase price $28,296,978 (collateralized by various FHLMC and FNMA obligations: total market value $28,861,791) (H) 28,293 28,293 ---------- Total Repurchase Agreement (Cost $28,293) 28,293 ---------- - --------------------------------------------------------------------- Value (000) - --------------------------------------------------------------------- Total Investments (103.7%) (Cost $228,321) $ 260,565 ---------- Other Assets and Liabilities, Net (-3.7%) (9,421) ---------- Net Assets: Fund shares of the Trust Class (unlimited authorization -- no par value) based on 14,630,932 outstanding shares of beneficial interest 156,262 Fund shares of the Investor Class (unlimited authorization -- no par value) based on 818,691 outstanding shares of beneficial interest 9,297 Fund shares of the Flex Class (unlimited authorization -- no par value) based on 2,956,184 outstanding shares of beneficial interest 37,053 Undistributed net investment income 806 Accumulated net realized gain on investments 15,482 Net unrealized appreciation on investments 32,244 ---------- Total Net Assets 100.0% $ 251,144 ========== Net Asset Value, Offering and Redemption Price Per Share -- Trust Shares $ 13.65 ========== Net Asset Value and Redemption Price Per Share -- Investor Shares $ 13.71 ========== Maximum Offering Price Per Share -- Investor Shares ($13.71 / 96.25%) $ 14.24 ========== Net Asset Value, Offering and Redemption Price Per Share -- Flex Shares $ 13.58 ========== (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 63. 6 - -------------------------------------------------------------------------------- Unaudited Capital Growth Fund - --------------------------------------------------------------------- Shares Value (000) - --------------------------------------------------------------------- Common Stocks (89.6%) Basic Materials (2.6%) Air Products & Chemicals 774,900 $ 29,543 Ecolab 89,700 2,775 Imperial Chemical ADR 96,400 3,651 Monsanto 245,300 11,115 Morton International 145,700 4,289 ---------- 51,373 ---------- Capital Goods (12.3%) Allied Signal 95,300 4,193 Allied Waste Industries* 285,000 5,807 AMP 54,600 2,641 Autozone* 47,700 1,437 Eastern Environmental Services* 38,300 833 General Electric 789,700 71,468 Honeywell 257,700 20,600 Lockheed Martin 113,300 11,755 Newell 126,400 5,593 Republic Services, Cl A* 324,600 6,046 Textron 105,300 8,180 Thermo Electron* 96,400 1,627 Tyco International 499,706 32,887 U.S. Filter* 492,625 10,899 U.S. Industries 158,000 2,765 United Technologies 283,400 30,377 Waste Management Inc* 692,445 29,689 ---------- 246,797 ---------- Communication Services (2.8%) Alltel 28,100 1,489 Century Telephone Enterprises 181,800 10,363 Ericsson Telephone ADR 173,400 4,790 Fox Entertainment Group, Cl A* 196,500 4,642 GTE 47,200 2,926 MCI WorldCom* 529,769 31,256 ---------- 55,466 ---------- - --------------------------------------------------------------------- Shares Value (000) - --------------------------------------------------------------------- Consumer Cyclicals (17.0%) American Greetings 279,400 $ 11,822 Carnival 1,055,900 36,429 Consolidated Stores* 191,100 4,109 Costco* 508,800 31,927 CVS 575,800 28,430 Dayton Hudson 96,100 4,324 Dollar General 250,700 5,970 Federated Department Stores* 196,200 8,179 Gannett 13,100 846 Hasbro 342,000 11,991 Lear* 338,200 13,063 Lowe's Companies 891,900 37,683 Manpower 175,600 3,907 Masco 1,026,400 29,637 Mattel 490,600 16,956 McGraw-Hill 177,200 15,859 New York Times, Cl A 201,700 6,265 Office Depot* 847,500 27,544 Promus Hotel* 88,600 2,957 Republic Industries* 83,500 1,419 Royal Caribbean Cruises 40,300 1,224 Saks Inc* 227,500 6,256 Service International 265,700 9,931 SPX* 82,900 4,808 Starwood Lodging Trust REIT 155,334 4,718 Tandy 354,500 15,975 ---------- 342,229 ---------- Consumer Staples (13.4%) American Stores 9,800 329 Avon Products 481,400 19,557 Bestfoods 39,800 2,313 Campbell Soup 103,100 5,890 Cendant* 781,023 14,839 Colgate-Palmolive 127,500 10,917 ConAgra 198,922 6,254 7 STATEMENT OF NET ASSETS - -------------------------------------------------------------------------------- STI CLASSIC FUNDS November 30, 1998 Capital Growth Fund--continued - --------------------------------------------------------------------- Shares Value (000) - --------------------------------------------------------------------- Consumer Staples--continued Flowers Industries 249,600 $ 5,694 Fort James 278,600 10,900 Fred Meyer* 115,200 5,861 Gillette 121,700 5,591 Hershey Foods 41,900 2,818 McDonald's 65,300 4,575 PepsiCo 99,800 3,861 Philip Morris 381,150 21,321 Procter & Gamble 231,000 20,241 Ralston Purina 695,300 24,205 Rite Aid 573,300 26,587 Rubbermaid 148,400 4,906 Safeway* 185,200 9,781 Sara Lee 470,100 27,442 Stanley Works 52,100 1,592 Tele-Communications, Cl A* 303,500 12,823 US Foodservice* 259,150 11,905 Viacom, Cl B* 98,900 6,583 William Wrigley Jr 34,400 3,031 ---------- 269,816 ---------- Energy (3.2%) British Petroleum ADR 66,528 6,129 Conoco* 194,600 4,610 Halliburton 538,400 15,816 Mobil 84,700 7,300 Texaco 304,800 17,545 Union Pacific Resources Group 312,259 3,493 Unocal 180,600 6,118 Weatherford International* 160,875 2,936 Williams 14,400 415 ---------- 64,362 ---------- Financials (12.7%) Allstate 35,900 1,463 American International Group 106,062 9,970 - --------------------------------------------------------------------- Shares Value (000) - --------------------------------------------------------------------- Financials--continued AmSouth Bancorp 10,500 $ 444 Associates First Capital 107,100 8,340 Bank One 465,136 23,867 Bank United, Cl A 53,200 2,334 BankAmerica 286,039 18,646 BankBoston 104,400 4,346 Citigroup 22,754 1,142 Colonial Bancgroup 80,900 1,001 Compass Bancshares 59,000 2,280 Conseco 446,800 14,800 FHLMC 289,100 17,491 First American of Tennessee 45,700 1,979 First Security 29,800 600 First Union 56,100 3,408 First Virginia Banks 23,100 1,037 Fleet Financial Group 16,400 683 FNMA 91,900 6,686 Household International 395,522 15,475 KeyCorp 206,200 6,329 Mellon Bank 433,000 27,253 MGIC Investment 177,100 7,781 North Fork Bancorporation 100,100 2,108 PNC Bank 402,500 20,754 Regions Financial 49,100 1,903 SouthTrust 37,900 1,393 Summit Bancorp 122,800 5,135 Sunamerica 199,600 15,818 Torchmark 418,600 15,907 Waddell & Reed Financial, Cl A* 18 -- Waddell & Reed Financial, Cl B* 102,515 2,396 Washington Mutual 160,224 6,209 Wells Fargo 180,200 6,487 ---------- 255,465 ---------- 8 - -------------------------------------------------------------------------------- Unaudited - --------------------------------------------------------------------- Shares Value (000) - --------------------------------------------------------------------- Health Care (11.4%) Abbott Laboratories 566,400 $ 27,187 Allegiance 199,600 8,046 Alza* 40,700 2,127 American Home Products 114,100 6,076 Arterial Vascular Engineering 14,800 723 Baxter International 186,300 11,842 Becton Dickinson 113,100 4,807 Boston Scientific* 147,200 7,286 Bristol-Myers Squibb 420,100 51,489 Eli Lilly 154,500 13,857 Forest Laboratories* 113,300 5,283 Healthsouth* 624,719 8,395 Johnson & Johnson 29,800 2,421 Merck 223,582 34,627 Pfizer 28,500 3,181 Safeskin* 67,100 1,275 Tenet Healthcare* 506,800 14,982 Warner Lambert 327,900 24,756 ---------- 228,360 ---------- Technology (13.2%) 3Com* 100,600 3,892 Ceridian* 358,500 23,325 Cisco Systems* 500,800 37,748 Compaq Computer 167,100 5,431 EMC* 225,100 16,320 HBO 139,300 3,474 Hewlett Packard 101,700 6,382 IBM 260,900 43,048 Intel 143,500 15,444 Lucent Technologies 100,764 8,672 Microsoft* 315,900 38,540 Networks Associates* 393,453 20,017 Northern Telecom 121,900 5,691 - --------------------------------------------------------------------- Shares Value (000) - --------------------------------------------------------------------- Technology--continued Sun Microsystems* 148,700 $ 11,013 Tellabs* 9,500 514 Texas Instruments 73,100 5,583 W.W. Grainger 181,200 7,656 Xerox 118,300 12,717 ---------- 265,467 ---------- Transportation (1.0%) Burlington Northern Santa Fe 249,700 8,490 Delta Air Lines 169,600 9,105 Trans World Air* 70,900 3,240 ---------- 20,835 ---------- Total Common Stocks (Cost $1,399,363) 1,800,170 ---------- Preferred Stocks (1.2%) Consumer Staples (0.4%) Monsanto, CV to 0.8197 Share 50,000 2,262 Suiza Capital Trust II, CV to 0.6390 Share, Callable 04/02/01 @ 51.719 79,400 3,285 United Rentals Trust I, CV to 1.1459 Share, Callable 08/02/01 @ 52.275 (B) 87,500 3,500 ---------- 9,047 ---------- Finance (0.1%) Conseco Financial Trust* CV to 0.9363 Shares 65,000 2,693 ---------- Technology (0.6%) Microsoft, CV to 1 Share 117,500 11,442 ---------- 9 STATEMENT OF NET ASSETS - -------------------------------------------------------------------------------- STI CLASSIC FUNDS November 30, 1998 Capital Growth Fund--concluded - --------------------------------------------------------------------- Shares/Face Amount (000) Value (000) - --------------------------------------------------------------------- Transportation (0.1%) Trans World Air, CV to 2.4668 Shares, Callable 03/15/99 @ 50* 58,000 $ 1,356 ---------- Total Preferred Stocks (Cost $22,857) 24,538 ---------- Convertible Bonds (1.9%) Baker Hughes, CV to 18.5990 Shares, Callable 01/11/99 @ 70.683 (A) (D) 0.000%, 05/05/08 $ 3,000 1,958 Bell Atlantic, CV to 87.2870 Shares, Callable 09/15/02 @ 104.242 (B) 4.250%, 09/15/05 4,000 4,125 Coeur D'alene, CV to 57.306 Shares, Callable 10/31/00 @ 103.625 7.250%, 10/31/05 3,500 2,131 Healthsouth, CV to 27.3000 Shares, Callable 04/05/01 @ 101.300 3.250%, 04/01/03 2,500 2,072 Home Depot, CV to 43.4000 Shares, Callable 10/02/99 @ 100.810 3.250%, 10/01/01 4,500 10,013 Mascotech, CV to 32.2580 Shares, Callable 01/11/99 @ 102.500 4.500%, 12/15/03 6,500 5,241 Molten Metal Technology, CV to 25.8065 Shares, Callable 05/01/99 @ 102.750 (B) 5.500%, 05/01/06 10,000 150 Network Associates, CV to 8.5380 Shares, Callable 02/13/03 @ 49.452 (A) (B) 0.000%, 02/13/18 10,000 4,800 Office Depot, CV to 21.2340 Shares, Callable 11/01/00 @ 72.844 (A) 0.000%, 11/01/08 4,500 3,572 - --------------------------------------------------------------------- Face Amount (000) Value (000) - --------------------------------------------------------------------- Convertible Bonds--continued WMX Technologies, CV to 18.9065 Shares, Callable 03/15/00 @ 84.303 2.000%, 01/24/05 $ 5,800 $ 5,481 ---------- Total Convertible Bonds (Cost $40,374) 39,543 ---------- Regulated Investment Companies (0.4%) CVS, TRACES* 70,000 6,370 Dollar General, STRYPES* 46,100 1,602 ---------- Total Regulated Investment Companies (Cost $6,732) 7,972 ---------- Repurchase Agreements (6.8%) Greenwich 5.38%, dated 11/30/98, matures 12/01/98, repurchase price $75,349,711 (collateralized by FNMA obligations: total market value $76,847,919) (H) 75,338 75,338 Salomon Brothers 5.38%, dated 11/30/98, matures 12/01/98, repurchase price $61,165,029 (collateralized by various FHLMC and FNMA obligations: total market value $62,446,631) (H) 61,156 61,156 ---------- Total Repurchase Agreements (Cost $136,494) 136,494 ---------- Total Investments (99.9%) (Cost $1,605,820) 2,008,717 ---------- Other Assets and Liabilities, Net (0.1%) 1,393 ---------- 10 - -------------------------------------------------------------------------------- Unaudited - --------------------------------------------------------------------- Value (000) - --------------------------------------------------------------------- Net Assets: Fund shares of the Trust Class (unlimited authorization -- no par value) based on 91,302,907 outstanding shares of beneficial interest $1,088,468 Fund shares of the Investor Class (unlimited authorization -- no par value) based on 16,028,983 outstanding shares of beneficial interest 187,614 Fund shares of the Flex Class (unlimited authorization -- no par value) based on 7,334,987 outstanding shares of beneficial interest 111,424 Undistributed net investment income 483 Accumulated net realized gain on investments 219,224 Net unrealized appreciation on investments 402,897 ---------- Total Net Assets 100.0% $2,010,110 ========== - --------------------------------------------------------------------- Value - --------------------------------------------------------------------- Net Asset Value, Offering and Redemption Price Per Share -- Trust Shares $17.56 ========== Net Asset Value and Redemption Price Per Share -- Investor Shares $17.51 ========== Maximum Offering Price Per Share -- Investor Shares ($17.51 / 96.25%) $18.19 ========== Net Asset Value, Offering and Redemption Price Per Share -- Flex Shares $17.24 ========== (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 63. 11 STATEMENT OF NET ASSETS - -------------------------------------------------------------------------------- STI CLASSIC FUNDS November 30, 1998 Emerging Markets Equity Fund - --------------------------------------------------------------------- Shares Value (000) - --------------------------------------------------------------------- Foreign Common Stocks (80.0%) Argentina (5.9%) Capex, Cl A* 33,700 $ 226 Massalin Particulares, Cl B 38,800 227 Metrogas ADR 32,204 280 Quilmes Industrial 22,000 208 Transportadora de Gas del Sur ADR 33,000 330 YPF ADR, Cl D 12,050 356 ---------- 1,627 ---------- Brazil (7.1%) Petrobras ADR 13,500 192 Souza Cruz 63,500 413 Tele Norte Leste Participacoes ADR 8,500 145 Telebras ADR* 5,030 477 Telec De Sao Paulo* 4,434,000 489 Telesp Celular* 1,690,000 63 Unibanco 9,100 190 ---------- 1,969 ---------- Chile (3.5%) Administradora de Fondos de Pensiones Provida ADR 29,500 446 Banco De A. Edwards 17,000 206 Quimica Y Minera Chile ADR 8,300 320 ---------- 972 ---------- Colombia (0.5%) Banco Ganadero ADR 15,600 142 ---------- Czech Republic (1.8%) SPT Telecom* 33,000 486 ---------- Ecuador (0.3%) La Cemento Nacional GDR 800 92 ---------- - --------------------------------------------------------------------- Shares Value (000) - --------------------------------------------------------------------- Greece (7.2%) Alpha Credit Bank 2,600 $ 247 Hellas Can Packaging 25,500 542 Hellenic Telecom Organization 16,983 424 Hellenic Telecom Organization ADR* 4,900 59 Pannafon Hellenic Telecom GDR* 10,000 181 Papastratos Cigarettes 35,560 537 ---------- 1,990 ---------- Hong Kong (6.2%) China Hong Kong Photo 790,000 83 Guangdong Kelon Electric Holding 188,000 164 IDT International 2,600,000 383 National Mutual Asia 594,000 418 Seoul Horizon Trust* 17,000 78 Techtronic Industries 1,350,000 279 VTech Holdings 72,000 312 ---------- 1,717 ---------- Hungary (2.4%) Egis* 3,925 90 Matav 60,000 332 Pick Szeged Rt GDR 144A 30,300 247 ---------- 669 ---------- India (3.8%) Hindalco GDR 2,700 31 Hindalco Industries GDR* 10,500 123 Mahanagar Telephone Nigam GDR 43,000 439 Videsh Sanchar Nigam GDR 45,000 460 ---------- 1,053 ---------- 12 - -------------------------------------------------------------------------------- Unaudited - --------------------------------------------------------------------- Shares Value (000) - --------------------------------------------------------------------- Indonesia (2.1%) Budi Acid Jaya, F* 100,250 $ 24 Citra Marga Nusaphala, F 944,000 35 Indonesian Satellite ADR 10,500 147 Modern Photo Film, F* 356,000 24 PT Dankos Laboratories* 665,000 25 PT Indosat, F 96,000 139 PT Jaya Real Property, F* 754,000 31 PT Timbang Timah 200,000 157 ---------- 582 ---------- Israel (2.0%) Blue Square Stores* 20,300 240 Israel Chemicals 274,000 232 Nice Systems ADR* 4,000 75 ---------- 547 ---------- Malaysia (1) (0.5%) Aluminium of Malaysia 154,000 40 Petronas Dagangan 114,000 95 ---------- 135 ---------- Mexico (8.8%) Cemex, ADR 23,300 137 Grupo Carso 78,000 242 Grupo Continental 167,750 388 Grupo Financiero Banorte, Cl B* 216,935 152 Grupo Industrial Maseca ADR 17,000 228 Grupo Radio Centro ADR 16,000 78 Herdez, Cl B 518,000 127 Nacional de Drogas, Cl L 622,000 355 Panamerican Beverage, Cl A 12,500 288 Sanluis Cpo 97,000 146 Telefonos de Mexico ADR 6,100 284 ---------- 2,425 ---------- - --------------------------------------------------------------------- Shares Value (000) - --------------------------------------------------------------------- Panama (0.2%) Banco Latinamericano de Exportaciones 2,800 $ 50 ---------- Peru (1.2%) CPT Telefoncia del Peru 17,000 252 Telefonica del Peru, Cl B 50,500 77 ---------- 329 ---------- Philippines (3.8%) Bacnotan Consolidated 155,940 167 Benpres Holdings 144A* 72,440 213 First Philippine Holdings, Cl B 134,250 80 Manila Electric, Cl B 72,000 231 Philippine Long Distance 14,000 367 ---------- 1,058 ---------- Poland (1.1%) Bank Handlowy 25,000 302 ---------- Portugal (7.9%) Banco Pinto & Sotto Mayor 42,000 766 Cimpor-Cimentos de Portugal 15,720 497 Electricidade de Portugal 12,500 556 Portugal Telecom ADR 8,200 361 ---------- 2,180 ---------- Singapore (1.5%) Amtek Engineering 246,000 118 Elec & Eltek International 56,400 291 ---------- 409 ---------- South Africa (7.4%) ABSA Group* 56,235 271 Amalgamated Beverage 13,781 89 Kersaf Investments 73,516 229 Liberty Life Association of Africa 7,383 126 13 STATEMENT OF NET ASSETS - -------------------------------------------------------------------------------- STI CLASSIC FUNDS November 30, 1998 Emerging Markets Equity Fund--concluded - --------------------------------------------------------------------- Shares/Face Amount(000) Value (000) - --------------------------------------------------------------------- South Africa--continued Rembrandt Group 48,800 $ 318 Richemont 26,500 384 Sanlam 125,000 132 South African Breweries 28,640 485 ---------- 2,034 ---------- South Korea (3.8%) Dae Duck Electronics 4,800 386 Pohang Iron & Steel 5,000 216 Sk Telecom 968 439 ---------- 1,041 ---------- Thailand (1.0%) Delta Electronics, F 37,500 194 KR Precision, F* 93,000 84 ---------- 278 ---------- Total Foreign Common Stocks (Cost $29,287) 22,087 ---------- Foreign Preferred Stocks (6.6%) Brazil (6.6%) Banco Itau SA 1,070,000 597 Brahma 600,000 324 Cemig 15,603,067 395 Fertilizantes Fosfatados 43,000,000 111 Globex Utilidades 30,800 128 Lojas Renner 5,500,000 87 Petrol Brasileiros 1,300,000 185 ---------- Total Foreign Preferred Stocks (Cost $2,879) 1,827 ---------- Time Deposit (11.6%) Cayman Time Deposit 4.750%, 12/01/98 $ 3,200 3,200 ---------- Total Time Deposit (Cost $3,200) 3,200 ---------- - --------------------------------------------------------------------- Value (000) - --------------------------------------------------------------------- Total Investments (98.2%) (Cost $35,366) $ 27,114 ---------- Other Assets and Liabilities, Net (1.8%) 502 ---------- Net Assets: Fund shares of the Trust Class (unlimited authorization -- no par value) based on 3,772,285 outstanding shares of beneficial interest 40,000 Undistributed net investment income 586 Accumulated net realized loss on investments and foreign currency transactions (4,668) Net unrealized depreciation on investments (8,252) Net unrealized depreciation on foreign currency and translation of other assets and liabilities in foreign currency investments (50) ---------- Total Net Assets 100.0% $ 27,616 ========== Net Asset Value, Offering and Redemption Price Per Share -- Trust Shares $ 7.32 ========== (1) As of September 1, 1998, the repatriation of proceeds received from the sale of these securities has been blocked until at least September 1, 1999. These securities are considered illiquid and are being fair valued in accordance with the Fair Value Pricing Procedures adopted by the Board of Directors. The accompanying notes are an integral part of the financial statements. For descriptions of abbreviations, please see page 63. 14 - -------------------------------------------------------------------------------- Unaudited International Equity Fund - --------------------------------------------------------------------- Shares Value (000) - --------------------------------------------------------------------- Foreign Common Stocks (90.5%) Australia (2.2%) Australia & New Zealand Banking Group 1,221,061 $ 8,061 QBE Insurance 1,168,904 5,036 ---------- 13,097 ---------- Austria (1.1%) Erste Bank 109,900 6,291 ---------- Canada (0.2%) Power Corporation of Canada 64 1,420 ---------- France (11.6%) Dexia France 82,630 12,392 Elf Aquitaine 25,200 3,141 France Telecom 174,075 12,109 Groupe Danone 29,420 8,586 Lafarge 31,800 2,997 Lagardere SCA 183,200 7,456 Suez Lyonnaise des Eaux 61,830 12,207 Technip 19,500 1,652 Vivendi 36,670 8,291 ---------- 68,831 ---------- Germany (8.8%) Bayer 74,150 3,043 Buderus 10,500 4,055 DaimlerChrysler 64,200 6,030 Hoechst 166,000 7,125 Mannesmann 41,400 4,479 Preussag 19,690 7,210 RWE 244,500 12,939 Veba 125,400 6,950 ---------- 51,831 ---------- - --------------------------------------------------------------------- Shares Value (000) - --------------------------------------------------------------------- Greece (1.5%) Hellenic Telecom Organization 255,602 $ 6,376 Hellenic Telecom Organization ADR* 211 2,556 ---------- 8,932 ---------- Hong Kong (0.3%) National Mutual Asia 2,127,500 1,498 ---------- Indonesia (0.0%) Modern Photo Film, F* 1,440,000 97 ---------- Ireland (4.0%) Allied Irish Bank 427,300 6,618 Bank of Ireland 820,418 16,982 ---------- 23,600 ---------- Italy (6.3%) INA 3,019,000 7,967 San Paolo-IMI 531,700 8,726 Telecom Italia 2,405,180 19,494 Unicredito Italiano 1 -- Unione Immobiliare* 1,550,000 776 ---------- 36,963 ---------- Japan (12.0%) Canon 368,000 8,131 Eisai 408,000 6,297 Fuji Photo Film 182,000 6,801 Honda Motor 216,000 7,756 Nippon Telegraph & Telephone 1,606 12,003 Ricoh 236,000 2,272 Sankyo 252,000 5,732 Takefuji 62,000 4,231 TDK 78,400 6,503 Terumo 491,000 10,909 ---------- 70,635 ---------- 15 STATEMENT OF NET ASSETS - -------------------------------------------------------------------------------- STI CLASSIC FUNDS November 30, 1998 International Equity Fund--concluded - --------------------------------------------------------------------- Shares Value (000) - --------------------------------------------------------------------- Netherlands (5.2%) Ahold 230,500 $ 7,994 ING Groep 180,878 10,360 KPN 291,110 12,562 ---------- 30,916 ---------- New Zealand (2.4%) Fletcher Challenge Building 3,128,748 3,950 Telecom Corporation of New Zealand 2,471,000 10,528 ---------- 14,478 ---------- Norway (3.0%) Christiania Bank 690,000 2,536 Orkla, Cl A 218,200 3,645 Petroleum Geo Services ADR* 169,500 2,384 Sparebanken NOR 477,000 9,210 ---------- 17,775 ---------- Panama (0.5%) Banco Latinamericano de Exportaciones 150,400 2,698 ---------- Philippines (0.3%) Benpres Holdings GDR 144A* 590,984 1,740 ---------- Portugal (1.9%) Banco Espirito Santo 144,480 4,480 Electricidade de Portugal 124,500 2,759 Portugal Telecom ADR 87,260 3,845 ---------- 11,084 ---------- Spain (3.4%) Argentaria 390,000 9,081 Endesa 275,300 7,183 Repsol 72,200 4,094 ---------- 20,358 ---------- Sweden (2.4%) Castellum 406,600 3,799 Drott, Cl B* 293,400 2,326 - --------------------------------------------------------------------- Shares Value (000) - --------------------------------------------------------------------- Sweden--continued Volvo, Cl B 344,800 $ 8,012 ---------- 14,137 ---------- Switzerland (4.5%) Novartis, Registered 10,660 20,012 Rentenanstalt 10 6,749 ---------- 26,761 ---------- United Kingdom (18.9%) Allied Zurich* 907,650 12,949 Avis Europe 595,000 2,272 Bass 537,082 7,406 British Aerospace 1,186,000 10,191 Cadbury Schweppes 214,000 3,212 Compass Group 324,000 3,415 Diageo 688,200 7,707 General Electric 1,256,560 10,269 Glaxo Wellcome 137,000 4,345 Ladbroke Group 895,000 3,462 Lloyds TSB Group 137,600 1,923 LucasVarity 1,826,596 6,266 National Westminster Bank 485,763 8,861 Reckitt & Colman 402,430 5,688 Rolls-Royce 733,000 2,962 Smithkline Beecham 678,758 8,329 Storehouse 1,953,695 4,527 Tomkins 1,686,695 7,817 ---------- 111,601 ---------- Total Foreign Common Stocks (Cost $489,679) 534,743 ---------- Foreign Preferred Stocks (1.0%) Germany (1.0%) GEA 243 5,798 ---------- Total Foreign Preferred Stocks (Cost $8,052) 5,798 ---------- 16 - -------------------------------------------------------------------------------- Unaudited - --------------------------------------------------------------------- Face Amount (000) Value (000) - --------------------------------------------------------------------- Time Deposit (6.4%) Cayman Time Deposit 4.750%, 12/01/98 $ 38,000 $ 38,000 ---------- Total Time Deposit (Cost $38,000) 38,000 ---------- Total Investments (97.9%) (Cost $535,731) 578,541 ---------- Other Assets and Liabilities, Net (2.1%) 12,452 ---------- Net Assets: Fund shares of the Trust Class (unlimited authorization -- no par value) based on 41,500,266 outstanding shares of beneficial interest 478,614 Fund shares of the Investor Class (unlimited authorization -- no par value) based on 1,161,744 outstanding shares of beneficial interest 14,501 Fund shares of the Flex Class (unlimited authorization -- no par value) based on 1,471,480 outstanding shares of beneficial interest 19,839 Undistributed net investment income 4,305 Accumulated net realized gain on investments and foreign currency transactions 31,039 Net unrealized appreciation on investments 42,810 Net unrealized depreciation on foreign currency and translation of other assets and liabilities in foreign currency investments (115) ---------- Total Net Assets 100.0% $ 590,993 ========== - --------------------------------------------------------------------- Value (000) - --------------------------------------------------------------------- Net Asset Value, Offering and Redemption Price Per Share -- Trust Shares $13.40 ========== Net Asset Value, Offering Price and Redemption Price Per Share -- Investor Shares $13.30 ========== Maximum Offering Price Per Share -- Investor Shares ($13.30 / 96.25%) $13.82 ========== Net Asset Value, Offering Price and Redemption Price Per Share -- Flex Shares (1) $13.04 ========== (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 63. 17 STATEMENT OF NET ASSETS - -------------------------------------------------------------------------------- STI CLASSIC FUNDS November 30, 1998 International Equity Index Fund - --------------------------------------------------------------------- Shares Value (000) - --------------------------------------------------------------------- Foreign Common Stocks (97.9%) Australia (2.5%) Amcor 13,361 $ 58 Broken Hill Proprietary 20,656 164 Coles Myer 30,235 157 CSR 27,994 67 Lend Lease 5,081 124 Mount Isa Mines Holdings 42,910 21 National Australia Bank 15,986 239 Newscorp 33,881 238 Pacific Dunlop 28,455 51 Rio Tinto 5,542 71 Western Mining 23,702 75 Westpac Banking 36,880 246 ---------- 1,511 ---------- Austria (1.3%) Bank of Austria 2,658 137 Ea - Generali 343 75 Oest El Wirtsch , Cl A 2,027 316 OMV 1,715 162 Wienerberger Baustoff 401 77 ---------- 767 ---------- Belgium (1.8%) Bekaert 30 16 Delhaize Freres 1,000 82 Electrabel 660 255 Fortis 752 239 Fortis CVG* 861 5 Groupe Bruxelles Lambert 376 71 Kredietbank 2,900 208 Petrofina 292 119 Solvay, Cl A 912 64 Union Minere 680 31 ---------- 1,090 ---------- - --------------------------------------------------------------------- Shares Value (000) - --------------------------------------------------------------------- Denmark (1.0%) Carlsberg, Cl B 1,127 $ 63 D/S 1912, Cl B 25 165 D/S Svendborg, Cl B 3 28 Danisco 1,210 62 Novo Nordisk, Cl B 1,270 145 Tele Danmark, Cl B 1,408 157 ---------- 620 ---------- Finland (0.9%) Merita 9,400 55 Nokia Oyj, Cl A* 2,000 196 Nokia Oyj, Cl K 1,900 186 Outokumpu Oy Akt, Cl A 3,100 29 UPM - Kymmene 3,500 92 ---------- 558 ---------- France (10.7%) Accor 501 110 Air Liquide 1,221 208 Alcatel Alsthom 1,562 207 Axa 3,588 464 Banque National Paris, Cl A 2,161 165 Bouygues 403 75 Cap Gemini Sogeti 549 80 Carrefour 428 303 Cie Bancaire 481 75 Cie de Saint Gobain 1,143 169 Cie Generale des Eaux 2,116 478 Compagnie Financiere de Paribas 1,547 138 Elf Aquitaine 2,220 277 Elf Sanofi 1,241 221 Eridania Beghin - Say 550 102 France Telecom 5,693 395 Groupe Danone 839 245 L'Oreal 771 480 Lafarge 997 94 Legrand 352 95 18 - -------------------------------------------------------------------------------- Unaudited - --------------------------------------------------------------------- Shares Value (000) - --------------------------------------------------------------------- France--continued Louis Vuitton - Moet Hennessy 894 $ 173 Michelin, Cl B 1,692 73 Pernod - Ricard 1,228 80 Peugeot 492 78 Pinault-Printemps-Redoute 1,744 297 Promodes 231 151 Rhone - Poulenc, Cl A 4,070 203 Schneider 1,693 104 Societe Generale 855 135 Suez Lyonnaise des Eaux 1,740 344 Total Compaigne, Cl B 2,361 293 Unibail 400 56 ---------- 6,368 ---------- Germany (13.9%) Aachener & Munchener Bete 810 128 Allianz 3,380 1,217 BASF AG 9,750 369 Bayer 7,960 327 Bayerische Vereinsbank 5,922 513 Beiersdorf 1,140 75 DaimlerChrysler 7,266 693 Degussa 990 49 Deutsche Bank 7,120 440 Deutsche Telekom 10,150 285 Dresdner Bank Frankfurt 4,600 206 Heidelberger Zement 1,024 75 Hochtief 260 10 Karstadt 25 12 Linde 291 165 Lufthansa 4,430 97 Man Muenchen 81 23 Mannesmann 4,080 441 Metro AG 2,351 147 Muenchener Rueckvers 1,110 511 Preussag 11 4 RWE 5,840 309 - --------------------------------------------------------------------- Shares Value (000) - --------------------------------------------------------------------- Germany--continued SAP 900 $ 408 Schering 1,810 224 Siemens 7,290 507 Thyssen 501 90 Veba 5,910 328 Viag 533 328 Volkswagen 4,110 334 ---------- 8,315 ---------- Hong Kong (2.0%) Cathay Pacific Airways 24,000 23 Cheung Kong Holdings 21,000 151 CLP Holdings 18,500 97 Hang Seng Bank 14,500 128 Hong Kong & China Gas 40,000 53 Hong Kong Telecommunications 81,600 156 Hutchison Whampoa 28,800 206 Johnson Electric Holdings* 4,000 9 New World Development 19,000 46 Shangri-La Asia 30,000 27 Swire Pacific 14,500 66 Sun Hung Kai Properties 28,600 205 ---------- 1,167 ---------- Ireland (0.6%) Allied Irish Bank 11,800 181 CRH 10,200 154 ---------- 335 ---------- Italy (8.1%) Assicurazioni Generali 19,000 710 Banca Commerciale Italiana 32,000 219 Banco Ambrosian 18,000 101 Benetton Group 50,000 92 Edison 11,000 111 ENI 76,000 472 Fiat 70,000 216 19 STATEMENT OF NET ASSETS - -------------------------------------------------------------------------------- STI CLASSIC FUNDS November 30, 1998 International Equity Index Fund--continued - --------------------------------------------------------------------- Shares Value (000) - --------------------------------------------------------------------- Italy--continued Fiat Non-Convertible 32,000 $ 57 INA 64,000 169 Italgas 11,000 54 Mediaset 12,000 85 Mediobanca 9,500 115 Montedison 90,000 108 Olivetti* 40,000 105 Parmalat Finanziaria 25,000 47 Pirelli 45,000 140 RAS 6,635 89 San Paolo-IMI 19,486 320 Sirti 16,000 92 Telecom Italia 60,000 486 Telecom Italia Mobile 107,500 704 Telecom Italia Mobile di Risp 27,500 116 Telecom Italia Rinascente 10,000 62 Unicredito Italiano 23,000 131 Unione Immobiliare* 64,000 32 ---------- 4,833 ---------- Japan (31.6%) Ajinomoto 15,000 136 Asahi Bank 20,000 76 Asahi Chemical Industries 24,000 100 Asahi Glass 25,000 145 Bank of Tokyo Mitsubishi 58,000 631 Bank of Yokohama 11,000 23 Bridgestone 12,000 281 Canon 15,000 331 Chiba Bank 17,000 64 Chiyoda* 5,000 12 Citizen Watch 11,000 70 Cosmo Oil 24,000 36 Dai Nippon Printing 12,000 174 Daiei 16,000 43 Daiwa Kosho Lease 5,000 19 Daiwa Securities 23,000 82 East Japan Railway 59 343 - --------------------------------------------------------------------- Shares Value (000) - --------------------------------------------------------------------- Japan--continued Ebara 11,000 $ 92 Fanuc 3,700 117 Fuji Bank 50,000 198 Fuji Photo Film 5,000 187 Fujitsu 33,000 381 Furukawa Electric 15,000 51 Hankyu 11,000 45 Hitachi 63,000 379 Honda Motor 11,000 395 Industrial Bank of Japan 47,000 254 Ito Ham Foods 8,000 38 Ito Yokado 7,000 428 Itochu 55,000 105 Japan Air Lines* 27,000 68 Japan Energy 37,000 37 Joyo Bank 25,300 93 Jusco 10,000 191 Kansai Electric Power 18,200 365 Kao 11,000 208 Kawasaki Steel 48,000 72 Kinki Nippon Railway 42,000 208 Kirin Brewery 20,000 208 Komatsu 22,000 113 Kubota 33,000 76 Kyocera 4,500 212 Marui 4,000 71 Matsushita Electric 32,000 515 Mitsubishi 28,000 180 Mitsubishi Chemical 50,000 93 Mitsubishi Electric* 60,000 152 Mitsubishi Estate 27,000 258 Mitsubishi Heavy Industries 49,000 184 Mitsubishi Materials 44,000 79 Mitsubishi Trust & Banking 3,000 22 Mitsui 46,000 263 Mitsui Trust & Banking 37,000 50 Mitsukoshi 17,000 47 20 - -------------------------------------------------------------------------------- Unaudited - --------------------------------------------------------------------- Shares Value (000) - --------------------------------------------------------------------- Japan--continued Murata Manufacturing 4,000 $ 157 NEC 26,000 221 New Oji Paper 17,000 76 Nichido Fire & Marine Insurance 15,000 76 Nippon Express 10,000 52 Nippon Oil 34,000 112 Nippon Paper Industries 20,000 86 Nippon Sharyo 5,000 13 Nippon Steel 102,000 186 Nippon Telegraph & Telephone 166 1,241 Nippon Yusen 30,000 91 Nippondenso 11,000 213 Nissan Motor 32,000 99 NKK 41,000 29 Nomura Securities 26,000 253 Obayashi 27,000 122 Odakyu Electric Railway 24,000 78 Olympus Optical 8,000 88 Osaka Gas 41,000 120 Sakura Bank 45,000 115 Sankyo 9,000 205 Sanyo Electric 44,000 124 Sega Enterprises 3,800 92 Sekisui Chemical 9,000 55 Sekisui House 14,000 136 Sharp 14,000 124 Shimizu 29,000 95 Shin - Etsu Chemical 15,000 335 Shizuoka Bank 1,000 11 Skylark 3,000 35 Sony 6,400 468 Sumitomo Bank 28,000 311 Sumitomo Chemical 20,000 69 Sumitomo Metal 76,000 91 Taisei 35,000 67 Takeda Chemical 20,000 674 Tobu Railway 15,000 43 - --------------------------------------------------------------------- Shares Value (000) - --------------------------------------------------------------------- Japan--continued Tohoku Electric Power 8,500 $ 138 Tokai Bank 20,000 101 Tokio Marine & Fire Insurance 26,000 294 Tokyo Electric Power 22,900 523 Tokyo Gas 55,000 129 Tokyu 10,000 26 Toppan Printing 15,000 178 Toray 32,000 152 Tostem 5,000 83 Toto 13,700 102 Toyo Seikan Kaisha 3,300 55 Toyoda Automatic Loom 8,000 135 Toyota Motor 47,000 1,191 Yamaichi Securities* 15,000 -- Yamanouchi Pharmaceutical 11,000 322 Yasuda Trust & Banking* 32,000 30 ---------- 18,823 ---------- Malaysia (1) (0.6%) Rothmans of Pall Mall 13,000 61 Telekom Malaysia 80,000 142 Tenaga Nasional 134,000 161 ---------- 364 ---------- Netherlands (2.5%) ABN Amro Holding 6,040 124 Akzo Nobel 1,180 48 Buhrmann 768 13 ING Groep 4,204 241 KPN 2,386 103 Philips Electronics 1,536 97 Royal Dutch Petroleum 9,620 461 TNT Post Group 2,086 52 Unilever 2,860 224 Wolters Kluwer 572 109 ---------- 1,472 ---------- 21 STATEMENT OF NET ASSETS - -------------------------------------------------------------------------------- STI CLASSIC FUNDS November 30, 1998 International Equity Index Fund--continued - --------------------------------------------------------------------- Shares Value (000) - --------------------------------------------------------------------- New Zealand (0.4%) Carter Holt Harvey 67,500 $ 64 Telecom Corporation of New Zealand 44,000 187 ---------- 251 ---------- Norway (0.9%) Bergesen, Cl A 4,750 58 Christiania Bank 9,400 35 Den Norske Bank, Cl B 12,200 47 Hafslund Nycomed, Cl B 2,200 9 Kvaerner 1,400 21 Norsk Hydro 6,525 245 Orkla, Cl A 2,700 45 Uni Storebrand* 9,987 74 ---------- 534 ---------- Portugal (0.6%) Banco Comercial Portugues 3,400 104 Electricidade de Portugal 6,200 137 Portugal Telecom 3,200 139 ---------- 380 ---------- Singapore (0.9%) Overseas Chinese Bank 27,000 165 Singapore International Airlines, F 28,000 195 Singapore Telecommunications 105,000 175 ---------- 535 ---------- Spain (4.2%) Argentaria 5,400 126 Autopistas CESA 3,000 46 Banco Bilbao Vizcaya 24,200 382 Banco Central Hispanoamericano 21,590 248 Banco Santander 10,238 209 Dragados Construccion 900 29 Endesa 10,000 261 - --------------------------------------------------------------------- Shares Value (000) - --------------------------------------------------------------------- Spain--continued Fomento de Construcciones Contratas 900 $ 53 Gas Natural 1,600 135 Iberdola 9,500 157 Mapfre 800 22 Repsol 3,500 198 Sociedad General Aguas de Barcelona 400 23 Tabacalera, Cl A 1,000 25 Telefonica de Espana 11,100 522 Union Electrica Fenosa 3,000 44 ---------- 2,480 ---------- Sweden (1.6%) ABB, Cl A 4,200 45 Astra, Cl A 7,566 139 Diligentia 1,350 9 Drott, Cl B* 1,400 11 Electrolux 2,600 40 Ericsson, Cl B 10,100 281 ForeningsSparbaken, Cl A 1,500 42 Granges 550 7 Hennes & Mauritz, Cl B 1,000 74 Skandinaviska Enskilda Banken 4,100 47 Skanska, Cl B 1,400 39 Stora Kopparbergs Bergslags, Cl A 2,500 31 Svenska Cellulosa, Cl B 2,100 46 Svenska Handelsbanken, Cl A 1,100 44 Swedish Match 4,500 15 Volvo, Cl B 2,450 57 ---------- 927 ---------- Switzerland (1.9%) Nestle 162 337 Novartis, Registered 124 233 Roche Holdings, Genusschein 15 176 22 - -------------------------------------------------------------------------------- Unaudited - --------------------------------------------------------------------- Shares Value (000) - --------------------------------------------------------------------- Switzerland--continued Roche Holdlings, Bearer 5 $ 90 UBS 659 198 Zurich Allied 110 79 ---------- 1,113 ---------- United Kingdom (9.9%) Abbey National 5,977 121 Allied Zurich* 9,147 131 Barclays Bank 6,503 147 Bass 6,771 93 BG 17,599 121 Blue Circle Industries 12,027 61 Boots 6,677 108 British American Tobacco 9,147 84 British Petroleum 31,137 485 British Telecommunications 26,886 368 BTR 29,891 61 Cable & Wireless 10,137 129 Cadbury Schweppes 8,483 127 Centrica* 16,753 35 Commercial Union 8,318 132 Diageo 23,433 263 General Electric 25,666 210 Glaxo Wellcome 13,761 435 Great Universal Stores 9,649 100 Halifax 5,258 75 Hanson PLC 7,986 59 HSBC Holdings 3,562 96 HSBC Holdings 6,141 156 Imperial Chemical 7,727 71 J Sainsbury 10,645 89 Legal & General Group 8,068 99 Lloyds TSB Group 17,926 249 Marks & Spencer 28,170 191 - --------------------------------------------------------------------- Shares Value (000) - --------------------------------------------------------------------- United Kingdom--continued National Power 7,307 $ 62 Prudential 15,982 233 Rentokil Group 13,216 85 Reuters Group 11,446 111 RMC Group 3,139 41 Royal & Sun Alliance 6,831 57 RTZ 7,151 84 Smithkline Beecham 18,346 225 Tesco 31,775 94 Unilever PLC 24,056 250 Vodafone Group 15,390 227 Zeneca Group 3,580 149 ---------- 5,914 ---------- Total Foreign Common Stocks (Cost $46,684) 58,357 ---------- Foreign Preferred Stocks (0.8%) Australia (0.1%) News Corporation 8,200 52 ---------- Germany (0.6%) RWE 1,280 44 SAP 480 250 Volkswagen 1,970 100 ---------- 394 ---------- Italy (0.1%) Fiat 30,000 51 ---------- Total Foreign Preferred Stocks (Cost $238) 497 ---------- Total Investments (98.7%) (Cost $46,922) 58,854 ---------- 23 STATEMENT OF NET ASSETS - -------------------------------------------------------------------------------- STI CLASSIC FUNDS November 30, 1998 International Equity Index Fund--concluded - --------------------------------------------------------------------- Value (000) - --------------------------------------------------------------------- Other Assets and Liabilities, Net (1.3%) $ 760 ---------- Net Assets: Fund shares of the Trust Class (unlimited authorization -- no par value) based on 3,868,060 outstanding shares of beneficial interest 32,891 Fund shares of the Investor Class (unlimited authorization -- no par value) based on 415,576 outstanding shares of beneficial interest 3,853 Fund shares of the Flex Class (unlimited authorization -- no par value) based on 77,835 outstanding shares of beneficial interest 851 Undistributed net investment income 421 Accumulated net realized gain on investments and foreign currency transactions 9,656 Net unrealized appreciation on investments 11,932 Net unrealized appreciation on foreign currency and translation of other assets and liabilities in foreign currency investments 10 ---------- Total Net Assets 100.0% $ 59,614 ========== - --------------------------------------------------------------------- Value - --------------------------------------------------------------------- Net Asset Value, Offering and Redemption Price Per Share -- Trust Shares $ 13.69 ========== Net Asset Value, Offering Price and Redemption Price Per Share -- Investor Shares $ 13.54 ========== Maximum Offering Price Per Share -- Investor Shares ($13.54 / 96.25%) $ 14.07 ========== Net Asset Value, Offering Price and Redemption Price Per Share -- Flex Shares (2) $ 13.47 ========== (1) As of September 1, 1998, the repatriation of proceeds received from the sale of these securities has been blocked until at least September 1, 1999. These securities are considered illiquid and are being fair valued in accordance with the Fair Value Pricing Procedures adopted by the Board of Directors. (2) 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 63. 24 - -------------------------------------------------------------------------------- Unaudited Mid-Cap Equity Fund - --------------------------------------------------------------------- Shares Value (000) - --------------------------------------------------------------------- Common Stocks (95.3%) Capital Goods (9.4%) Allied Waste Industries* 587,200 $ 11,964 Herman Miller 255,300 5,425 U.S. Filter* 447,000 9,890 Watsco 249,600 4,477 ---------- 31,756 ---------- Consumer Cyclicals (23.2%) BJ's Wholesale Club* 167,400 6,455 Borders Group* 459,300 11,138 Ethan Allen Interiors 151,200 5,972 Family Dollar Stores 494,500 9,921 Harley-Davidson 267,900 11,202 Just for Feet* 353,800 8,005 Men's Wearhouse* 426,450 10,795 Office Depot* 227,000 7,378 Ralph Lauren* 240,600 4,466 Staff Leasing* 337,000 3,033 ---------- 78,365 ---------- Consumer Staples (13.3%) Avis Rent A Car* 283,000 5,961 Cracker Barrel Old Country Stores 234,900 5,461 Dial 190,500 5,001 Flowers Industries 161,200 3,677 Interstate Bakeries 318,700 8,366 Norrell 198,300 3,160 Papa John's International* 231,000 9,688 US Foodservice* 83,900 3,854 ---------- 45,168 ---------- Energy (2.3%) Anadarko Petroleum 92,200 2,599 EEX* 348,700 1,242 National-Oilwell Inc* 231,400 2,285 Newpark Resources* 220,600 1,627 ---------- 7,753 ---------- - --------------------------------------------------------------------- Shares Value (000) - --------------------------------------------------------------------- Financials (9.8%) Colonial Bancgroup 344,700 $ 4,266 Dime Bancorp 197,800 5,254 First Security 254,362 5,119 First Virginia Banks 80,100 3,594 Hibernia, Cl A 324,500 5,476 North Fork Bancorporation 291,800 6,146 Western Bancorp 96,600 3,152 ---------- 33,007 ---------- Health Care (11.9%) Acuson Corp* 190,900 2,673 Centocor* 123 4,977 Forest Laboratories* 102,700 4,788 Immunex* 63,700 5,868 Jones Pharmaceuticals 35,000 1,260 Mylan Laboratories 200,700 6,661 Quintiles Transnational* 70 3,506 Watson Pharmaceuticals* 197,000 10,613 ---------- 40,346 ---------- Technology (24.1%) ADC Telecommunications* 281,500 8,410 Fiserv* 202,800 8,961 Flextronics International* 180,100 11,977 Intuit* 102,900 5,955 Networks Associates* 217,860 11,084 Nova* 130,631 4,156 Radiant Systems* 55,700 397 Sawtek* 347,700 7,562 Sanmina* 202,100 10,067 Tech Data* 140,400 5,651 Teradyne* 228,100 7,313 ---------- 81,533 ---------- Transportation (1.3%) CNF Transportation 123,000 4,390 ---------- Total Common Stocks (Cost $296,147) 322,318 ---------- 25 STATEMENT OF NET ASSETS - -------------------------------------------------------------------------------- STI CLASSIC FUNDS November 30, 1998 Mid-Cap Equity Fund--concluded - --------------------------------------------------------------------- Face Amount (000) Value (000) - --------------------------------------------------------------------- Repurchase Agreement (5.6%) Greenwich 5.40%, dated 11/30/98, matures 12/01/98, repurchase price $18,860,415 (collateralized by various FNMA obligations: total market value $19,238,483) (H) $ 18,858 $ 18,858 ---------- Total Repurchase Agreement (Cost $18,858) 18,858 ---------- Total Investments (100.9%) (Cost $315,005) 341,176 ---------- Other Assets and Liabilities, Net (-0.9%) (3,054) ---------- Net Assets: Fund shares of the Trust Class (unlimited authorization -- no par value) based on 23,833,818 outstanding shares of beneficial interest 263,993 Fund shares of the Investor Class (unlimited authorization -- no par value) based on 1,690,790 outstanding shares of beneficial interest 19,138 Fund shares of the Flex Class (unlimited authorization -- no par value) based on 1,434,760 outstanding shares of beneficial interest 18,416 Net operating loss (2,451) Accumulated net realized gain on investments 12,855 Net unrealized appreciation on investments 26,171 ---------- Total Net Assets 100.0% $ 338,122 ========== - --------------------------------------------------------------------- Value - --------------------------------------------------------------------- Net Asset Value, Offering and Redemption Price Per Share -- Trust Shares $ 12.57 ========== Net Asset Value and Redemption Price Per Share -- Investor Shares $ 12.44 ========== Maximum Offering Price Per Share -- Investor Shares ($12.44 / 96.25%) $ 12.92 ========== Net Asset Value, Offering and Redemption Price Per Share -- Flex Shares $ 12.17 ========== (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 63. 26 - -------------------------------------------------------------------------------- Unaudited Small Cap Equity Fund - --------------------------------------------------------------------- Shares Value (000) - --------------------------------------------------------------------- Common Stocks (94.9%) Basic Materials (12.3%) Carpenter Technology 95,300 $ 3,365 Commonwealth Industries 308,600 2,970 General Chemical Group 128,200 2,179 H. B. Fuller 84,200 3,663 Lilly Industries Incorporated, Cl A 304,400 5,688 Madeco ADR 289,600 3,222 Quimica y Minera Chile ADR 216,800 8,347 Texas Industries 265,700 7,689 Titanium Metals 192,700 1,915 Wausau-Mosinee Paper 231,300 3,903 ---------- 42,941 ---------- Capital Goods (16.4%) A.M. Castle 179,900 3,463 Ameron 87,900 3,230 Belden 173,800 2,933 Columbus Mckinnon 94,400 1,717 DT Industries 114,800 2,109 Furon 189,800 3,262 Gerber Scientific 175,100 4,432 Hardinge 95,850 1,827 Kaman 239,100 3,885 Kaydon 90,500 3,196 Lindberg 179,400 2,366 LSI Industries 133,300 2,833 Pittway, Cl A 129,300 3,596 Precision Castparts 60,800 2,687 Regal Beloit 320,500 8,012 Smith (A.O.) 156,900 3,903 Valmont Industries 239,900 3,868 ---------- 57,319 ---------- Consumer Cyclicals (21.5%) American Woodmark 135,800 4,142 Angelica 134,300 2,443 - --------------------------------------------------------------------- Shares Value (000) - --------------------------------------------------------------------- Consumer Cyclicals--continued Bush Industries 363,700 $ 5,956 Chemed 96,900 3,282 Fours Seasons Hotel* 101,000 2,695 Guilford Mills 292,650 4,225 Harman International 192,300 8,209 Interface 228,500 2,856 Jannock Limited 263,000 2,383 K2 400,200 4,552 Kimball International* 345,200 6,645 Midas 105,200 3,281 Pep Boys 145,600 2,057 Pillowtex 149,200 5,036 Ritchie Brothers Auctioneers* 128,200 3,077 Sotheby's Holdings, Cl A 192,500 5,390 Springs Industries, Cl A 64,800 2,523 Sturm Ruger 177,200 2,248 Toro 158,500 4,200 ---------- 75,200 ---------- Consumer Staples (14.9%) Banta 118,000 3,142 Bowne & Company 179,600 3,008 Ingles Markets, Cl A 237,000 2,844 Nash Finch 213,900 3,115 Norrell 661,700 10,546 Standard Register 277,500 8,169 Universal Foods 339,300 8,419 Wallace Computer Services 84,600 1,898 WD-40 112,900 3,500 Wolverine World Wide 444,200 6,052 York Group 133,300 1,483 ---------- 52,176 ---------- Energy (1.5%) Giant Industries 426,800 5,095 ---------- 27 STATEMENT OF NET ASSETS - -------------------------------------------------------------------------------- STI CLASSIC FUNDS November 30, 1998 Small Cap Equity Fund--concluded - --------------------------------------------------------------------- Shares Value (000) - --------------------------------------------------------------------- Financials (9.5%) Administradora de Fondos de Pensiones Provida ADR* 182,000 $ 2,753 Alfa 130,300 2,850 Annuity & Life Re Holdings* 187,300 4,753 ARM Financial Group 193,900 4,169 Banco Latinamericano de Exportaciones 115,100 2,065 Chicago Title 71,300 3,333 Klamath First Bancorp 118,200 2,105 Scottish Annuity & Life* 167,600 2,116 Seacoast Banking of Florida 59,000 1,652 Stirling Cooke Brown Holdings 84,200 1,495 Student Loan 62,200 2,822 Westerfed Financial 173,600 3,364 ---------- 33,477 ---------- Health Care (6.7%) Block Drug, Cl A 75,602 2,835 London International Group ADR 214,300 3,402 Medeva PLC ADR 580,900 4,429 Mentor 396,400 7,333 Mony Group* 32,700 1,012 Vital Signs 268,300 4,561 ---------- 23,572 ---------- Technology (3.4%) Dallas Semiconductor 121,000 4,568 Innovex 292,800 4,685 Pioneer-Standard Electronics 259,000 2,817 ---------- 12,070 ---------- Transportation (4.7%) Bandag 33,200 1,174 Knightsbridge Tankers Limited* 166,900 3,547 Pittston Burlington 360,200 3,129 - --------------------------------------------------------------------- Shares/Face Amount (000) Value (000) - --------------------------------------------------------------------- Transportation--continued Sea Containers 243,000 $ 7,898 Western Star Truck Holdings 53,600 764 ---------- 16,512 ---------- Utilities (4.0%) Northwest Natural Gas 110,550 3,137 Nui 123,100 2,993 TNP Enterprises 95,000 3,610 United Water Resources 202,300 4,198 ---------- 13,938 ---------- Total Common Stocks (Cost $367,481) 332,300 ---------- Preferred Stock (0.6%) Basic Materials (0.6%) Coeur D'Alene Mines, CV to 0.8260 Share, Callable 03/15/99 @ 21.622 299,800 2,211 ---------- Total Preferred Stock (Cost $4,812) 2,211 ---------- Repurchase Agreement (3.9%) Morgan Stanley 5.40%, dated 11/30/98, matures 12/01/98, repurchase price $13,640,010 (collateralized by FHLMC obligation: market value $13,911,152) (H) $ 13,638 13,638 ---------- Total Repurchase Agreement (Cost $13,638) 13,638 ---------- Total Investments (99.4%) (Cost $385,931) 348,149 ---------- Other Assets and Liabilities, Net (0.6%) 2,068 ---------- 28 - -------------------------------------------------------------------------------- Unaudited - --------------------------------------------------------------------- Value (000) - --------------------------------------------------------------------- Net Assets: Fund shares of the Trust Class (unlimited authorization -- no par value) based on 30,381,352 outstanding shares of beneficial interest $ 347,697 Fund shares of the Flex Class (unlimited authorization -- no par value) based on 2,758,951 outstanding shares of beneficial interest 35,609 Undistributed net investment income 876 Accumulated net realized gain on investments 3,817 Net unrealized depreciation on investments (37,782) ---------- Total Net Assets 100.0% $ 350,217 ========== Net Asset Value, Offering and Redemption Price Per Share -- Trust Shares $ 10.58 ========== Net Asset Value, Offering and Redemption Price Per Share -- Flex Shares $ 10.52 ========== (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 63. 29 STATEMENT OF NET ASSETS - -------------------------------------------------------------------------------- STI CLASSIC FUNDS November 30, 1998 Small Cap Growth Stock Fund - --------------------------------------------------------------------- Shares Value (000) - --------------------------------------------------------------------- Common Stocks (86.4%) Basic Materials (5.9%) Alpha Industries* 4,870 $ 107 Applied Signal Technology* 6,105 73 Arterial Vascular* 2,795 137 Astec Industries* 1,460 76 Avant!* 6,150 103 Centex Construction Products 2,585 92 NCI Building Systems* 2,100 51 Pure World Cosmetics* 10,975 101 Stillwater Mining* 2,625 96 ---------- 836 ---------- Capital Goods (12.8%) AFC Cable Systems* 2,260 67 American Woodmark 3,485 106 Champion Enterprises* 3,985 89 Coflexip-Sponsored* 2,165 79 Ducommun* 1,800 30 Dycom Industry* 2,415 95 Elcor 2,500 77 Gulf Island Fabrication* 3,930 29 JLG Industries 3,510 58 Kellstrom Industries* 4,200 103 LSI Industries 3,075 65 Manitowoc 1,730 69 Myers Industries 3,100 70 National R.V. Holdings* 4,125 109 Navistar International* 3,175 82 Pentair 1,795 68 Reliance Steel & Aluminum 2,090 64 Sps Technologies* 1,410 81 Stanley Furniture* 4,905 83 Superior TeleCom 2,045 89 Transwitch* 2,830 79 Tredegar Industries 2,550 60 USG* 1,780 88 Varlen 3,441 91 ---------- 1,831 ---------- - --------------------------------------------------------------------- Shares Value (000) - --------------------------------------------------------------------- Communication Services (2.9%) ECI Telecommunications 3,405 $ 122 Flextronics International* 1,220 81 Gilat Satellite Networks Limited* 1,810 92 Polycom* 6,315 112 ---------- 407 ---------- Consumer Cyclicals (28.9%) American Eagle Outfitters* 1,950 116 Ann Taylor Stores* 3,340 110 Blyth Industries* 2,785 95 Brinker International* 3,370 86 Buckle* 3,595 92 Cato, Cl A 6,320 86 Chicos* 5,800 127 CHS Electronics* 8,300 123 Consolidated Graphics* 1,805 104 Correctional Services* 7,170 83 Craftmade International 7,535 88 Cutter & Buck* 3,915 113 Cybex Computer Products* 2,305 96 Empi* 4,935 111 First Years 6,860 115 Fossil* 4,855 134 Highwoods Properties 2,405 65 Juno Lighting 3,485 81 K-Swiss, Cl A 4,145 118 La-Z-Boy Chair 2,175 36 Labor Ready* 3,970 87 Liberty Property Trust 2,800 69 MDC Holdings 4,935 91 Media Arts Group* 7,385 108 Mohawk Industries* 3,015 112 Monaco Coach* 3,370 101 Movado Group 3,560 72 Oshkosh B'gosh, Cl A 5,010 120 Pacific Sunwear of California* 4,060 60 Quiksilver* 2,795 68 Rent-Way* 3,050 83 Salton/Maxim Housewares* 4,795 89 30 - -------------------------------------------------------------------------------- Unaudited - --------------------------------------------------------------------- Shares Value (000) - --------------------------------------------------------------------- Consumer Cyclicals--continued SCP Pool* 5,650 $ 88 Select Appointments Holdings ADR* 4,490 90 Staffmark* 4,530 105 Standard Pacific 9,145 89 Steven Madden Ltd* 14,785 99 Sykes Enterprises* 4,685 95 Syntel* 3,150 43 Tarrant Apparel Group* 4,005 131 Triumph Group Inc* 2,395 81 Urs* 3,885 79 Wabash National 4,475 84 Westaff* 3,990 26 Winnebago Industries 6,860 82 ---------- 4,131 ---------- Consumer Staples (1.4%) CKE Restaurants 2,255 55 Fresh Del Monte Produce* 3,700 81 Logan's Roadhouse* 3,155 65 ---------- 201 ---------- Energy (1.4%) Core Laboratories N.V.* 4,205 80 J. Ray McDermott S.A.* 2,295 56 KTI* 3,250 69 ---------- 205 ---------- Financials (9.8%) Amerin* 4,277 106 Automobile Protection* 9,400 86 Bank of Commerce/San Diego 6,205 92 BSB Bancorp 3,080 89 City National 2,360 88 Cullen/Frost Bankers 1,635 88 Fidelity National Financial 3,000 98 Financial Security Assurance Holdings 1,515 83 First American Financial 2,915 89 - --------------------------------------------------------------------- Shares Value (000) - --------------------------------------------------------------------- Financials--continued Fremont General 1,570 $ 79 Landamerica Financial Group 1,515 93 Metris* 1,635 55 NVR* 2,365 93 Ryland Group 3,480 92 Stewart Information Services 1,640 81 Triad Guaranty* 4,135 93 ---------- 1,405 ---------- Health Care (4.8%) Barr Laboratories* 1,680 71 Medco Research* 2,730 55 Osteotech* 2,965 99 Pediatrix Medical Group* 1,655 89 Physician Reliance Network* 6,950 64 Rehabcare Group* 4,625 83 Resmed* 3,265 111 Visix Space* 1,615 118 ---------- 690 ---------- Technology (14.3%) Catalytica* 5,395 97 Checkpoint Software* 3,195 104 Ciber* 4,730 107 Complete Business Solutions* 2,525 62 Computer Task Group 3,149 85 Henry (Jack) & Associates 1,754 88 Insight Enterprises* 2,700 114 Keane* 2,595 75 Landmark Systems* 8,000 84 New Dimension Software Ltd* 3,680 122 Pomeroy Computer Resources* 4,560 88 Progress Software* 4,485 114 Project Software & Development* 3,770 114 SPR* 5,670 101 Symix Systems* 4,445 89 T-HQ* 4,480 125 Tekelec* 6,840 106 31 STATEMENT OF NET ASSETS - -------------------------------------------------------------------------------- STI CLASSIC FUNDS November 30, 1998 Small Cap Growth Stock Fund--concluded - --------------------------------------------------------------------- Shares/Face Amount (000) Value (000) - --------------------------------------------------------------------- Technology--continued Timberline Software 5,693 $ 70 Wiztec Solutions Ltd* 8,635 112 World Access* 3,975 81 Xircom* 3,290 99 ---------- 2,037 ---------- Transportation (3.6%) Amtran Inc* 3,465 76 Comair 2,785 85 Landstar System* 2,745 113 Midwest Express Holdings* 2,205 61 Skywest 3,840 104 Swift Transportation* 3,115 68 ---------- 507 ---------- Utilities (0.6%) Southwest Gas 3,620 86 ---------- Total Common Stocks (Cost $10,976) 12,336 ---------- Repurchase Agreement (12.5%) Morgan Stanely 5.40%, dated 11/30/98, matures 12/01/98, repurchase price $1,785,637 (collateralized by various FNMA obligations: total market value $1,834,284) (H) $1,785 1,785 ---------- Total Repurchase Agreement (Cost $1,785) 1,785 ---------- Total Investments (98.9%) (Cost $12,761) 14,121 ---------- Other Assets and Liabilities, Net (1.1%) 164 ---------- - --------------------------------------------------------------------- Value (000) - --------------------------------------------------------------------- Net Assets: Fund shares of the Trust Class (unlimited authorization -- no par value) based on 1,016,426 outstanding shares of beneficial interest $ 12,131 Fund shares of the Flex Class (unlimited authorization -- no par value) based on 61,274 outstanding shares of beneficial interest 762 Undistributed net investment income 1 Accumulated net realized gain on investments 31 Net unrealized appreciation on investments 1,360 ---------- Total Net Assets 100.0% $ 14,285 ========== Net Asset Value, Offering and Redemption Price Per Share -- Trust Shares $ 13.26 ========== Net Asset Value, Offering and Redemption Price Per Share -- Flex Shares $ 13.24 ========== (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 63. 32 - -------------------------------------------------------------------------------- Unaudited Sunbelt Equity Fund - --------------------------------------------------------------------- Shares Value (000) - --------------------------------------------------------------------- Common Stocks (97.9%) Capital Goods (11.7%) American Homestar* 228,868 $ 3,748 Aviall* 122,352 1,484 Blount International 182,723 4,225 Centex 67,601 2,412 Kellstrom Industries* 253,506 6,243 Kuhlman 116,947 3,260 Maverick Tube* 214,288 1,219 Miller Industries* 491,570 2,366 Palm Harbor Homes* 193,245 5,000 Tidewater 127,479 2,940 Tristar Aerospace* 98,529 727 UNIFAB International* 393,078 3,439 Watsco 149,173 2,676 ---------- 39,739 ---------- Communication Services (3.4%) MCI WorldCom* 76,197 4,496 Superior TeleCom* 64,999 2,827 World Access* 209,269 4,251 ---------- 11,574 ---------- Consumer Cyclicals (16.4%) AHL Services* 70,928 2,341 Barnett* 218,919 2,736 Carnival 84,502 2,915 Circuit City 84,502 3,058 Family Dollar Stores 173,283 3,476 Hibbet Sporting Goods* 60,935 1,878 Lowe's Companies 127,152 5,372 Modis Professional Services* 380,832 4,546 O'Charleys* 211,712 2,832 Office Depot* 61,652 2,004 Pier 1 Imports 187,560 2,016 Play By Play Toys & Novelties* 91,743 688 Policy Management Systems* 100,960 5,162 Quest Education* 231,919 2,319 Renters Choice* 92,136 2,223 - --------------------------------------------------------------------- Shares Value (000) - --------------------------------------------------------------------- Consumer Cyclicals--continued Staffmark* 217,485 $ 5,057 Suburban Lodges of America* 68,138 545 Tandy 108,303 4,880 Tractor Supply* 54,765 1,438 ---------- 55,486 ---------- Consumer Staples (7.8%) Flowers Industries 169,004 3,855 Food Lion, Cl A 695,540 7,129 Outback Steakhouse* 117,264 4,163 Sonic* 401,058 7,871 Tyson Foods 169,487 3,506 ---------- 26,524 ---------- Energy (13.6%) Anadarko Petroleum 272,679 7,686 BJ Services* 238,308 3,292 Core Laboratories N.V.* 241,472 4,573 Diamond Offshore Drilling 196,172 4,389 Global Industries* 692,313 3,938 J. Ray McDermott S.A.* 103,606 2,538 Nuevo Energy* 172,828 2,560 Oceaneering International* 146,293 1,820 Pride International* 116,502 881 St. Mary Land & Exploration 74,358 1,413 Stone Energy* 265,790 8,007 Transocean Offshore 84,359 2,083 World Fuel Services 233,436 2,845 ---------- 46,025 ---------- Financials (14.2%) AmSouth Bancorp 86,166 3,641 CCB Financial 94,202 5,110 Crestar Financial 61,622 4,090 Cullen/Frost Bankers 21,011 1,127 Fairfield Communities* 763,672 8,257 Nova* 387,296 12,321 33 STATEMENT OF NET ASSETS - -------------------------------------------------------------------------------- STI CLASSIC FUNDS November 30, 1998 Sunbelt Equity Fund--concluded - --------------------------------------------------------------------- Shares Value (000) - --------------------------------------------------------------------- Financials--continued Profit Recovery Group International* 188,989 $ 6,378 Texas Regional Bancshares, Cl A 61,382 1,680 Triad Guaranty* 241,185 5,427 ---------- 48,031 ---------- Health Care (3.3%) Cryolife* 334,239 3,802 Serologicals* 246,609 7,244 ---------- 11,046 ---------- Technology (21.5%) Acxiom* 276,529 6,533 Benchmark Electronics* 250,023 6,251 CHS Electronics* 414,866 6,145 Compaq Computer 204,206 6,637 Cybex Computer Products* 134,506 5,582 Datastream Systems* 144,894 1,467 Dell Computer* 42,251 2,569 HBO 324,068 8,081 Nichols Research* 232,020 4,959 SCB Computer Technology* 831,788 6,758 SCI Systems* 101,982 4,959 Sterling Commerce* 146,782 5,321 Sterling Software* 84,986 2,188 Sykes Enterprises* 178,116 3,607 Texas Instruments 25,496 1,947 ---------- 73,004 ---------- Transportation (6.0%) ASA Holdings 94,790 3,217 Comair 154,064 4,718 Covenant Transportation, Cl A* 206,832 3,594 - --------------------------------------------------------------------- Shares/Face Amount (000) Value (000) - --------------------------------------------------------------------- Transportation--continued Hunt J B Transportation Services 328,402 $ 6,240 USA Truck* 210,914 2,531 ---------- 20,300 ---------- Total Common Stocks (Cost $296,209) 331,729 ---------- Convertible Bond (1.1%) Pier 1 Imports, CV to 81.1030 Shares, Callable 10/01/99 @ 103 5.750%, 10/01/03 $ 2,799 3,901 ---------- Total Convertible Bond (Cost $3,934) 3,901 ---------- Repurchase Agreements (2.2%) Deutsche Bank 5.25%, dated 11/30/98, matures 12/01/987, repurchase price $4,777,668 (collateralized by various U.S. Treasury obligations: total market value $4,872,883) (H) 4,777 4,777 SBC Warburg 5.25%, dated 11/30/98, matures 12/01/98, repurchase price $2,626,770 (collateralized by various US Treasury obligations: total market value $2,680,125) (H) 2,626 2,626 ---------- Total Repurchase Agreements (Cost $7,403) 7,403 ---------- Total Investments (101.2%) (Cost $307,546) 343,033 ---------- 34 - -------------------------------------------------------------------------------- Unaudited - --------------------------------------------------------------------- Value (000) - --------------------------------------------------------------------- Other Assets and Liabilities, Net (-1.2%) $ (4,205) ---------- Net Assets: Fund shares of the Trust Class (unlimited authorization -- no par value) based on 26,579,660 outstanding shares of beneficial interest 268,765 Fund shares of the Investor Class (unlimited authorization -- no par value) based on 1,929,086 outstanding shares of beneficial interest 18,517 Fund shares of the Flex Class (unlimited authorization -- no par value) based on 580,619 outstanding shares of beneficial interest 7,808 Net operating loss (10,209) Accumulated net realized gain on investments 18,460 Net unrealized appreciation on investments 35,487 ---------- Total Net Assets 100.0% $ 338,828 ========== - --------------------------------------------------------------------- Value - --------------------------------------------------------------------- Net Asset Value, Offering and Redemption Price Per Share -- Trust Shares $ 11.68 ========== Net Asset Value and Redemption Price Per Share -- Investor Shares $ 11.38 ========== Maximum Offering Price Per Share -- Investor Shares ($11.38 / 96.25%) $ 11.82 ========== Net Asset Value, Offering and Redemption Price Per Share -- Flex Shares $ 11.21 ========== (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 63. 35 STATEMENT OF NET ASSETS - -------------------------------------------------------------------------------- STI CLASSIC FUNDS November 30, 1998 Value Income Stock Fund - --------------------------------------------------------------------- Shares Value (000) - --------------------------------------------------------------------- Common Stocks (92.2%) Basic Materials (11.9%) Allegheny Teledyne 1,143,400 $ 23,511 B.F. Goodrich 481,100 18,252 Boise Cascade 748,300 23,712 Consolidated Papers 573,400 14,658 Engelhard 737,300 14,239 Hercules 473,300 15,560 Morton International 630,800 18,569 Reynolds Metals 517,100 28,376 Sonoco Products 751,030 22,484 Union Camp 375,500 24,290 Weyerhaeuser 355,900 17,839 Witco Chemical 277,800 5,296 Worthington Industries 776,800 9,467 ---------- 236,253 ---------- Capital Goods (11.1%) Cooper Industries 462,700 22,730 Corning 267,600 10,737 Crown Cork & Seal 728,600 24,590 Federal Signal 520,300 12,715 Harris 642,700 24,382 Johnson Controls 422,200 24,435 National Service Industries 575,700 22,236 Pall 855,400 19,888 Tecumseh Products, Cl A 213,000 10,543 Tenneco 686,900 24,471 Thomas & Betts 557,900 24,164 ---------- 220,891 ---------- Communication Services (5.2%) Alltel 747,500 39,618 Ameritech 339,800 18,392 Frontier 329,400 9,923 GTE 553,900 34,342 ---------- 102,275 ---------- - --------------------------------------------------------------------- Shares Value (000) - --------------------------------------------------------------------- Consumer Cyclicals (10.0%) American Greetings, Cl A 516,200 $ 21,842 Genuine Parts 607,600 20,013 H & R Block 827,800 37,199 ITT Industries 212,100 7,636 J.C. Penney 821,400 45,177 Masco 790,000 22,811 Stanley Works 1,045,500 31,953 TRW 198,800 10,946 ---------- 197,577 ---------- Consumer Staples (14.6%) Bestfoods 358,300 20,826 ConAgra 1,324,000 41,623 Dean Foods 427,800 19,465 Flowers Industries 660,900 15,077 Food Lion, Cl A 894,000 9,164 General Mills 474,600 35,832 Hormel Foods 348,600 10,305 International Flavors & Fragrances 697,700 29,216 Kimberly Clark 972,100 51,157 McCormick 467,800 15,613 Seagram 671,000 23,024 Wallace Computer Services 824,900 18,509 ---------- 289,811 ---------- Energy (8.7%) Atlantic Richfield 452,900 30,118 Baker Hughes 878,800 16,093 Conoco 302,600 7,168 Fort James Corp. 633,800 24,797 Kerr-McGee 442,000 17,459 Mobil 198,500 21,840 Murphy Oil 481,400 19,196 Unocal 1,078,600 36,538 ---------- 173,209 ---------- 36 - -------------------------------------------------------------------------------- Unaudited - --------------------------------------------------------------------- Shares Value (000) - --------------------------------------------------------------------- Financials (16.8%) American Financial Group 411,300 $ 16,169 American General 309,400 21,793 AmSouth Bancorp 256,900 10,854 Bank One 895,700 45,961 BankBoston 514,000 21,395 Cigna 496,600 38,642 Hibernia, Cl A 838,800 14,155 Jefferson-Pilot 200,000 13,650 KeyCorp 721,900 22,153 Paine Webber Group 480,000 19,620 PNC Bank 443,900 22,889 Safeco 682,300 29,296 Summit Bancorp 553,000 23,122 Transamerica 180,600 19,189 Union Planters 330,664 15,748 ---------- 334,636 ---------- Health Care (7.9%) Abbott Laboratories 428,500 20,568 American Home Products 615,600 32,781 Baxter International 760,000 48,308 C.R. Bard 363,900 16,671 Mallinckrodt 561,900 18,156 Pharmacia Upjohn ADR 404,700 21,070 ---------- 157,554 ---------- Technology (1.0%) EG&G 693,500 19,375 ---------- - --------------------------------------------------------------------- Share/Face Amount (000) Value (000) - --------------------------------------------------------------------- Utilities (5.0%) Consolidated Natural Gas 517,900 $ 28,128 GPU 429,900 18,835 Questar 843,700 16,188 Scana 525,000 17,128 Sonat 617,500 18,332 ---------- 98,611 ---------- Total Common Stocks (Cost $1,734,351) 1,830,192 ---------- Repurchase Agreements (6.9%) Greenwich 5.37%, dated 11/30/98, matures 12/01/98, repurchase price $60,681,878 (collateralized by various FHLMC and FNMA obligations: total market value $61,887,552) (H) $ 60,673 60,673 Salomon Brothers 5.37%, dated 11/30/98, matures 12/01/98, repurchase price $76,620,518 (collateralized by various FHLMC and FNMA obligations: total market value $79,042,523) (H) 76,609 76,609 ---------- Total Repurchase Agreements (Cost $137,282) 137,282 ---------- Total Investments (99.1%) (Cost $1,871,633) 1,967,474 ---------- 37 STATEMENT OF NET ASSETS - -------------------------------------------------------------------------------- STI CLASSIC FUNDS November 30, 1998 Value Income Stock Fund--concluded - --------------------------------------------------------------------- Value (000) - --------------------------------------------------------------------- Other Assets and Liabilities, Net (0.9%) $ 18,963 ---------- Net Assets: Fund shares of the Trust Class (unlimited authorization -- no par value) based on 116,095,515 outstanding shares of beneficial interest 1,260,059 Fund shares of the Investor Class (unlimited authorization -- no par value) based on 14,352,876 outstanding shares of beneficial interest 162,688 Fund shares of the Flex Class (unlimited authorization -- no par value) based on 12,612,697 outstanding shares of beneficial interest 168,128 Undistributed net investment income 5,434 Accumulated net realized gain on investments 294,287 Net unrealized appreciation on investments 95,841 ---------- Total Net Assets 100.0% $1,986,437 ========== - --------------------------------------------------------------------- Value - --------------------------------------------------------------------- Net Asset Value, Offering and Redemption Price Per Share -- Trust Shares $ 13.90 ========== Net Asset Value and Redemption Price Per Share -- Investor Shares $ 13.87 ========== Maximum Offering Price Per Share -- Investor Shares ($13.87 / 96.25%) $ 14.41 ========== Net Asset Value, Offering and Redemption Price Per Share -- Flex Shares $ 13.75 ========== (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 63. 38 - -------------------------------------------------------------------------------- Unaudited Florida Tax-Exempt Bond Fund - --------------------------------------------------------------------- Face Amount (000) Value (000) - --------------------------------------------------------------------- Municipal Bonds (97.3%) Florida (93.5%) Brevard County, School Board, Ser A, COP (AMBAC) 5.400%, 07/01/12 $ 1,500 $ 1,619 Brevard County, State Health Facilities Authority, Holmes Medical Center Project, RB, Callable 10/01/03 @ 102 (MBIA) 5.700%, 10/01/08 3,000 3,283 Brevard County, State Health Facilities Authority, Wuesthoff Memorial Hospital Project, RB (MBIA) 6.250%, 04/01/06 930 1,054 Broward County, School District, COP, Callable 07/01/07 @ 101 (AMBAC) 5.100%, 07/01/09 1,465 1,559 Citrus County, Pollution Control, Florida Power, RB Callable 08/01/02 @ 102 6.350%, 02/01/22 335 364 Dade County, Aviation Revenue, Miami International Airport, Ser B, RB, AMT, Callable 10/01/07 @ 101.50 (FSA) 5.125%, 10/01/13 2,255 2,322 Dade County, Aviation Revenue, RB, AMT, Callable 10/01/2002 @ 102 (MBIA) 6.600%, 10/01/22 825 910 Dade County, Aviation Revenue, Ser A, RB, Callable 10/01/05 @ 102 (AMBAC) 6.000%, 10/01/09 500 560 Dade County, School Board, Ser B, COP (AMBAC) 5.750%, 08/01/03 750 813 - --------------------------------------------------------------------- Face Amount (000) Value (000) - --------------------------------------------------------------------- Florida--continued Dade County, School District, GO, Prerefunded 07/01/99 @ 102 (F) 7.375%, 07/01/08 $ 250 $ 261 Dade County, Seaport, RB (MBIA) 6.200%, 10/01/08 750 865 6.500%, 10/01/09 1,000 1,187 6.200%, 10/01/10 1,000 1,165 Dade County, State Educational Facilities Authority, University of Miami, RB Callable 04/01/06 @ 102 (MBIA) 5.750%, 04/01/20 2,000 2,154 Dade County, State Educational Facilities Authority, University of Miami, Ser A, RB (MBIA) 6.000%, 04/01/08 755 852 Dade County, Water & Sewer System, RB (FGIC) 6.250%, 10/01/09 750 874 Daytona Beach, Water & Sewer Revenue, ETM, RB, Callable 11/15/1998 @ 102.25 (F) 6.750%, 11/15/07 1,000 1,120 Deerfield Beach, Water & Sewer Revenue, RB (FGIC) 6.125%, 10/01/06 250 285 Gainesville, Utility Systems, Ser A, RB 5.750%, 10/01/04 1,300 1,428 5.750%, 10/01/09 500 565 Gulf Breeze, Local Government Lien, Ser B, RB, Mandatory Tender 12/01/08 (FGIC) 5.650%, 12/01/08 460 503 Gulf Breeze, Local Government Lien, Ser B, RB, Mandatory Tender 12/01/09 (FGIC) 5.750%, 12/01/09 410 450 39 STATEMENT OF NET ASSETS - -------------------------------------------------------------------------------- STI CLASSIC FUNDS November 30, 1998 Florida Tax-Exempt Bond Fund--continued - --------------------------------------------------------------------- Face Amount (000) Value (000) - --------------------------------------------------------------------- Florida--continued Hillsborough County, Capital Improvement Program, ETM, RB (FGIC) (F) 5.900%, 08/01/04 $ 300 $ 331 Hillsborough County, School Board Revenue, COP, Callable 07/01/06 @ 100 (MBIA) 5.875%, 07/01/08 1,000 1,115 Hillsborough County, University Community Hospital, RB (MBIA) 6.500%, 08/15/19 145 176 Indian Trace Community, Water Management Split Benefit, Ser A-1, RB, Callable 05/01/05 @ 102 (MBIA) 5.500%, 05/01/07 455 498 Jacksonville, Excise Tax, Ser B, RB, AMT, Callable 10/01/03 @ 100 (FGIC) 5.200%, 10/01/04 1,500 1,559 Jacksonville, Excise Taxes RB, Callable 10/01/99 @ 101 (MBIA) 7.250%, 10/01/02 100 102 Jacksonville, River City Renaissance Project, RB (FGIC) 6.000%, 10/01/04 2,430 2,698 Jacksonville, State Health Facilities Authority, Charity Obligation Group, Ser A, RB , Callable 08/15/07 @ 101 (MBIA) 5.250%, 08/15/15 1,465 1,523 Jacksonville, Water & Sewer Revenue, RB, Callable 10/01/06 @ 102, Prerefunded 09/30/08 @101 (MBIA) (G) 5.000%, 10/01/20 610 652 Lakeland, Electric & Water Revenue, RB (FGIC) 6.500%, 10/01/05 2,590 2,965 6.000%, 10/01/07 1,000 1,142 - --------------------------------------------------------------------- Face Amount (000) Value (000) - --------------------------------------------------------------------- Florida--continued Lee County, Industrial Developement Authority, Bonita Springs Utilities Project, RB, Callable 11/01/06 @ 101 (MBIA) 5.750%, 11/01/10 $ 1,480 $ 1,631 Lee County, Passenger Facility RB, Callable 10/01/05 @ 101 (AMBAC) 4.600%, 10/01/07 1,760 1,806 Manatee County, Community Redevelopment Administration, Center Project, RB, Callable 04/01/00 @ 102 (MBIA) 7.000%, 04/01/08 1,000 1,063 Martin County, State Health Facilities Authority, Martin Memorial Medical Center, Ser B, RB, Callable 11/15/07 @ 102 (MBIA) 5.150%, 11/15/11 1,070 1,130 Miami-Dade County, School District, GO (FSA) 5.375%, 08/01/12 5,000 5,443 Miami-Dade County, Special Obligation, RB, Callable 04/01/08 @ 86.60 (MBIA) (A) 0.000%, 10/01/11 1,635 896 North Broward, Hospital District Revenue, ETM, RB (MBIA) (G) 5.950%, 01/01/01 1,000 1,046 Orange County, Public Facilities Revenue, Ser A, RB, Callable 10/01/04 @ 102 (AMBAC) 5.650%, 10/01/07 200 220 Orange County, State Health Facilities Authority, Orlando Regional Healthcare, RB (MBIA) 6.250%, 10/01/13 1,000 1,172 40 - -------------------------------------------------------------------------------- Unaudited - --------------------------------------------------------------------- Face Amount (000) Value (000) - --------------------------------------------------------------------- Florida--continued Orange County, State Housing Finance Authority, Single Family Mortgage, Ser B, RB, Callable 9/01/07 @ 102 5.800%, 09/01/17 $ 705 $ 736 Orlando, Aviation Authority, Airport Facilities, RB, AMT (FGIC) 5.250%, 10/01/13 1,725 1,824 Orlando, Aviation Authority, Airport Facilities, Ser A, RB, AMT, Callable 10/01/03 @ 102 (AMBAC) 5.400%, 10/01/06 1,340 1,433 Orlando, Community Water & Electric Revenue, Ser D, RB 6.750%, 10/01/17 5,385 6,587 Osceola County, COP (MBAC) 6.250%, 06/01/01 1,760 1,870 6.250%, 06/01/04 2,105 2,350 6.250%, 06/01/05 2,240 2,530 Palm Beach County, Apartment System, RB, Callable 10/01/01 @ 102 (MBIA) 7.625%, 10/01/04 1,410 1,582 Palm Beach County, Solid Waste Authority, ETM, Ser A, RB (AMBAC) (F) 6.000%, 10/01/09 300 346 Palm Beach County, Solid Waste Authority, Ser A, RB (AMBAC) 6.000%, 10/01/09 2,225 2,552 Pensacola, Airport Revenue, Ser A, RB, AMT, Callable 10/01/08 @ 102 (MBIA)* 6.250%, 10/01/09 880 1,014 Pinellas County, Morton Plant Health Systems Project, RB, Callable 11/15/03 @ 102 (MBIA) 5.500%, 11/15/08 1,500 1,608 - --------------------------------------------------------------------- Face Amount (000) Value (000) - --------------------------------------------------------------------- Florida--continued Pinellas County, State Housing Finance Authority, Single Family Mortgage, Ser C, RB, Callable 03/01/07 @ 102 5.050%, 09/01/07 $ 215 $ 223 5.100%, 09/01/08 230 239 Plant City, Utility System Revenue, RB (MBIA) 6.000%, 10/01/15 400 460 Polk County, Utility System Revenue, ETM, RB (FGIC) (G) 6.000%, 10/01/08 2,250 2,520 Reedy Creek, GO, Callable 06/01/08 @ 100 (MBIA) 5.250%, 06/01/13 1,000 1,051 Reedy Creek, Utility Revenue, Ser 1991-1, RB, Prerefunded 10/01/01 @ 101 (MBIA) (F) 6.250%, 10/01/11 405 437 South Broward, Hospital District, RB, Callable 05/01/03 @ 102 (AMBAC) 7.500%, 05/01/08 1,920 2,224 St. Lucie County, School District, GO, Callable 07/01/02 @ 102 (AMBAC) 6.000%, 07/01/04 500 544 State, Board of Education, Capital Outlay, GO 6.100%, 06/01/00 125 127 State, Board of Education, Capital Outlay, Ser A, GO, Callable 01/01/08 @ 101 5.250%, 01/01/12 2,495 2,643 State, Board of Education, Capital Outlay, Ser A, GO, Callable 06/01/00 @ 102 7.250%, 06/01/23 355 379 41 STATEMENT OF NET ASSETS - -------------------------------------------------------------------------------- STI CLASSIC FUNDS November 30, 1998 Florida Tax-Exempt Bond Fund--concluded - --------------------------------------------------------------------- Face Amount (000) Value (000) - --------------------------------------------------------------------- Florida--continued State, Board of Education, Capital Outlay, Ser B, GO 4.500%, 06/01/01 $ 2,800 $ 2,861 State, Board of Education, Capital Outlay, Ser B, GO (F) 6.000%, 06/01/02 1,000 1,067 State, Board of Education, Capital Outlay, Ser B, GO, Callable 06/01/02 @ 101 5.900%, 06/01/12 450 486 6.000%, 06/01/15 170 184 State, Board of Education, Capital Outlay, Ser C, GO, Callable 06/01/03 @ 101 5.700%, 06/01/11 2,305 2,484 State, Board of Education, Ser B, GO, Callable 06/01/01 @ 101 6.000%, 06/01/22 500 542 State, Board of Education, Ser C, ETM, GO (F) 7.100%, 06/01/07 190 195 State, Finance Department, Department of Natural Resources, Preservation 2000, Ser A, RB, Prerefunded 07/01/01 @ 102 (AMBAC) (F) 6.750%, 07/01/06 80 88 State, Finance Department, Environmental Protection, Preservation 2000, Ser A, RB (FSA) 5.500%, 07/01/08 1,000 1,101 State, Finance Department, Environmental Protection, Preservation 2000, Ser B, RB, Callable 07/01/08 @ 101 (FSA) 5.250%, 07/01/12 3,000 3,175 - --------------------------------------------------------------------- Face Amount (000) Value (000) - --------------------------------------------------------------------- Florida--continued State, Keys, Aqueduct Authority Revenue, RB, Prerefunded 09/01/01 @ 101 (AMBAC) 6.750%, 09/01/21 $ 170 $ 186 State, Municipal Power Agency, Saint Lucie Project, ETM, RB (F) 5.000%, 10/01/17 500 508 Sunrise, Utility System, RB, Callable 10/01/18 @ 100 (AMBAC) 5.200%, 10/01/22 2,000 2,081 5.000%, 10/01/28 1,500 1,519 Sunrise, Utility System, Ser A, RB (AMBAC) (A) 0.000%, 10/01/09 1,000 625 Tallahassee, Utility System, Ser B, RB, Prerefunded 10/01/99 @ 102 (F) 6.900%, 10/01/14 240 252 Tampa, Health System, Catholic Health, Ser A-1, RB, Callable 11/15/08 @ 102 (MBIA) 5.250%, 11/15/11 2,300 2,449 Tampa, Health System, Catholic Health, Ser A-2, RB, Callable 11/15/08 @ 102 (AMBAC) 5.250%, 11/15/12 2,030 2,146 Tampa, RB, Callable 10/1/01 @ 102 (AMBAC) 7.050%, 10/01/07 1,000 1,105 Tampa, Special Tax Allocation, Callable 10/01/01 @ 102 (AMBAC) 6.900%, 10/01/09 1,500 1,649 Tampa, Water & Sewer Revenue, Ser B, RB (AMBAC) 5.000%, 10/01/02 1,435 1,501 ---------- 112,844 ---------- 42 - -------------------------------------------------------------------------------- Unaudited - --------------------------------------------------------------------- Face Amount (000) Value (000) - --------------------------------------------------------------------- Puerto Rico (3.8%) Commonwealth, GO (MBIA) 5.650%, 07/01/15 $ 1,000 $ 1,116 Commonwealth, Highway & Transportation Authority, Ser Z, RB (MBIA) 6.250%, 07/01/14 2,000 2,364 Electric Power Authority, Ser S, RB 5.500%, 07/01/00 200 206 Public Buildings Authority Revenue, Guaranteed Government Facilities, Ser A, RB (AMBAC) 6.250%, 07/01/14 750 887 ---------- 4,573 ---------- Total Municipal Bonds (Cost $113,168) 117,417 ---------- Cash Equivalent (1.5%) AIM Management Institutional Tax-Free Portfolio (C) 1,790 1,790 ---------- Total Cash Equivalent (Cost $1,790) 1,790 ---------- Total Investments (98.8%) (Cost $114,958) 119,207 ---------- Other Assets and Liabilities, (Net 1.2%) 1,450 ---------- - --------------------------------------------------------------------- Value (000) - --------------------------------------------------------------------- Net Assets: Fund shares of the Trust Class (unlimited authorization -- no par value) based on 9,735,374 outstanding shares of beneficial interest $ 101,345 Fund shares of the Investor Class (unlimited authorization -- no par value) based on 347,434 outstanding shares of beneficial interest 3,469 Fund shares of the Flex Class (unlimited authorization -- no par value) based on 984,565 outstanding shares of beneficial interest 10,360 Undistributed net investment income 6 Accumulated net realized gain on investments 1,228 Net unrealized appreciation on investments 4,249 ---------- Total Net Assets 100.0% $ 120,657 ========== Net Asset Value, Offering and Redemption Price Per Share -- Trust Shares $ 10.90 ========== Net Asset Value and Redemption Price Per Share -- Investor Shares $ 10.91 ========== Maximum Offering Price Per Share -- Investor Shares ($10.91 / 96.25%) $ 11.34 ========== Net Asset Value, Offering and Redemption Price Per Share -- Flex Shares $ 10.92 ========== (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 63. 43 STATEMENT OF NET ASSETS - -------------------------------------------------------------------------------- STI CLASSIC FUNDS November 30, 1998 Georgia Tax-Exempt Bond Fund - --------------------------------------------------------------------- Face Amount (000) Value (000) - --------------------------------------------------------------------- Municipal Bonds (92.6%) Georgia (92.6%) Albany-Dougherty County, State Hospital Authority, Ser B, Anticipation Certificate, Prerefunded 09/01/00 @ 102 (AMBAC) (F) 7.500%, 09/01/20 $ 255 $ 277 Alpharetta, GO 5.000%, 05/01/07 1,650 1,756 Athens, Water & Sewer Revenue, ETM, RB (F) 5.700%, 07/01/00 165 171 Atlanta, Airport Facility, RB (AMBAC) 6.000%, 01/01/03 1,000 1,080 6.000%, 01/01/04 500 547 6.500%, 01/01/06 1,000 1,146 Augusta, Water & Sewer Revenue, RB, Prerefunded 05/01/02 @ 102 (F) 6.200%, 05/01/03 130 142 Bibb County, GO 7.000%, 01/01/04 985 1,120 Cartersville, Water & Sewer Revenue, RB, Callable 07/01/08 @102 (FSA) 5.000%, 07/01/12 1,255 1,302 Clayton County, GO 5.000%, 08/01/02 1,000 1,043 Clayton County, Water & Sewer Authority, RB (MBIA) 5.000%, 05/01/11 600 631 Clayton County, Water Authority, RB, Callable 05/01/06 @ 102 (AMBAC) 5.350%, 05/01/09 1,500 1,621 Cobb County & Marietta, Coliseum & Exhibit Hall Authority, RB (MBIA) 5.500%, 10/01/12 940 1,034 - --------------------------------------------------------------------- Face Amount (000) Value (000) - --------------------------------------------------------------------- Georgia--continued Cobb County & Marietta, Water Authority, RB 5.000%, 11/01/03 $ 1,255 $ 1,320 5.100%, 11/01/04 1,000 1,062 Cobb County, GO 5.000%, 02/01/03 1,025 1,072 Cobb County, Recreational Facilities Improvements, GO, Callable 01/01/07 @ 101 5.125%, 01/01/15 850 876 Columbia County, Courthouse/ Detention Center Projects, GO, Callable 02/01/08 @ 102 5.000%, 02/01/10 920 960 Columbus, Georgia Water & Sewer, RB, Callable 11/01/07 @ 102 (FGIC) 5.625%, 05/01/13 1,055 1,152 Dalton, Utilities Revenue RB (MBIA) 6.000%, 01/01/08 3,000 3,402 Dalton-Whitfield County, Hospital Authority, RB, Prerefunded 07/01/00 @ 102 (F) 7.000%, 07/01/03 355 381 DeKalb County, Development Authority, Emory University Project, Ser A, RB 5.375%, 11/01/05 1,650 1,789 DeKalb County, Development Authority, Emory University Project, Ser A, RB, Callable 11/01/05 @ 101 5.200%, 11/01/08 500 535 DeKalb County, School District, Ser A, GO 6.250%, 07/01/11 1,500 1,761 Douglas County, School District, GO (MBIA) 5.650%, 01/01/09 805 874 44 - -------------------------------------------------------------------------------- Unaudited - --------------------------------------------------------------------- Face Amount (000) Value (000) - --------------------------------------------------------------------- Georgia--continued Douglasville - Douglas County, Water & Sewer Authority, RB (AMBAC) 5.625%, 06/01/15 $ 350 $ 386 East Point, Building Authority, RB, Callable 02/01/06 @ 102 (AMBAC) 4.800%, 02/01/07 535 560 Fayette County, School District, GO 6.250%, 03/01/07 450 516 Fayette County, Water Authority, ETM, RB (MBIA) (F) 8.550%, 10/01/01 300 341 Forsyth County Water & Sewer Authority, RB 5.000%, 04/01/04 1,000 1,053 Forsyth County Water & Sewer Authority, RB, Callable 04/01/08 @ 101 5.000%, 04/01/09 1,120 1,186 5.000%, 04/01/10 460 485 Forsyth County, School District, GO 6.400%, 07/01/05 750 851 6.500%, 07/01/06 1,000 1,154 Forsyth County, School District, GO (MBIA) 5.350%, 07/01/10 780 853 Fulco, Hospital Authority, Catholic Health East, Ser A, RB, Anticipation Certificate, Callable 11/15/08 @ 102 (MBIA) 5.250%, 11/15/12 1,000 1,054 Fulton County, Hospital Authority, Northside Hospital Project, Ser B, RB, Prerefunded 10/01/02 @ 102 (MBIA) (F) 6.600%, 10/01/11 2,000 2,237 Gwinnett County, Recreation Authority, RB 5.800%, 02/01/06 785 870 5.875%, 02/01/07 1,390 1,560 - --------------------------------------------------------------------- Face Amount (000) Value (000) - --------------------------------------------------------------------- Georgia--continued Gwinnett County, School District, GO 6.400%, 02/01/06 $ 500 $ 572 Gwinnett County, School District, Ser B, GO 6.400%, 02/01/07 1,500 1,735 Gwinnett County, Water & Sewer Authority, RB, Callable 08/01/08 @ 102 5.000%, 08/01/13 800 828 Hall County, School District, Ser B, GO 6.300%, 12/01/05 675 768 Henry County, GO 6.300%, 08/01/08 300 347 Henry County, Henry Medical Center Project, Callable 07/01/07 @ 102 (AMBAC) 5.500%, 07/01/08 2,460 2,700 Henry County, School District, Ser A, GO 6.150%, 08/01/06 150 170 6.450%, 08/01/11 500 591 Henry County, School District, Ser B, GO (MBIA) 5.500%, 08/01/01 350 367 Henry County, Water & Sewer Authority, RB (AMBAC) 6.150%, 02/01/20 1,750 2,054 Jackson County, School District, GO, Callable 07/01/08 @ 101 5.000%, 07/01/10 1,020 1,075 Medical Center Hospital Authority, Columbus Regional Healthcare System, Callable 08/01/05 @ 102, RB (MBIA) 6.000%, 08/01/06 1,000 1,122 Meriwether County, School District, GO (FSA) 7.000%, 02/01/06 740 871 5.500%, 02/01/16 1,000 1,061 45 STATEMENT OF NET ASSETS - -------------------------------------------------------------------------------- STI CLASSIC FUNDS November 30, 1998 Georgia Tax-Exempt Bond Fund--concluded - --------------------------------------------------------------------- Face Amount (000) Value (000) - --------------------------------------------------------------------- Georgia--continued Metro Atlanta, Rapid Tranit Authority, Ser N, RB 6.000%, 07/01/07 $ 1,000 $ 1,139 Milledgeville, Water & Sewer Revenue, RB (FSA) 6.000%, 12/01/16 1,000 1,150 6.000%, 12/01/21 1,000 1,160 Paulding County, School District, Ser A, GO 6.625%, 02/01/07 1,000 1,169 6.625%, 02/01/08 500 593 Private Colleges & Universities Facilities Authority, Emory University Project, Ser A, RB 5.500%, 11/01/06 525 576 Private Colleges & Universities Facilities Authority, Emory University Project, Ser A, RB, Callable 11/01/07 @ 100 5.000%, 11/01/10 1,000 1,051 Private Colleges & Universities Facilities Authority, Emory University Project, Ser C, RB, Callable 10/01/02 @ 102 5.900%, 10/01/04 305 332 Private Colleges & Universities Facilities Authority, Mercer University Project, RB (MBIA) 6.400%, 11/01/11 500 595 Private Colleges & Universities Facilities Authority, Spelman College Project, RB (FGIC) 6.000%, 06/01/09 475 528 Putnam County, School District, GO, Callable 2/01/08 @ 102 4.500%, 02/01/12 930 940 Richmond County, Water & Sewer Revenue, Ser A, RB, Callable 10/01/06 @ 102 (FGIC) 5.125%, 10/01/17 1,000 1,020 - --------------------------------------------------------------------- Face Amount (000) Value (000) - --------------------------------------------------------------------- Georgia--continued Rockdale County, School District, RB, Prerefunded 01/01/99 @ 102 (F) 6.400%, 01/01/05 $ 150 $ 153 Savannah, Hospital Authority, St. Josephs/Candler Health System, Ser B, RB, Callable 01/01/09 @ 101 5.250%, 07/01/12 1,040 1,092 Savannah, Water & Sewer Revenue, ETM, RB (F) 6.450%, 12/01/04 1,000 1,135 Smyrna, Development Authority, RB 5.600%, 02/01/20 735 803 State GO, Ser C 6.500%, 04/01/08 1,000 1,181 6.250%, 08/01/08 1,360 1,587 State Housing & Financial Authority, Single Family Mortgage, Ser B, Sub-ser B-1, Callable 06/01/05 @ 102, RB 5.550%, 12/01/07 550 586 State Housing & Financial Authority, Single Family Mortgage, Ser B, Sub-ser B-1, Callable 06/01/06 @ 102, RB (FHA) 5.550%, 12/01/10 325 343 5.600%, 12/01/11 450 475 State Housing & Financial Authority, Single Family Mortgage, Ser C, Sub-ser C-1, Callable 12/01/07 @ 101.50, RB 5.550%, 12/01/16 500 525 State Municipal Electric Authority, ETM, RB, Callable 01/12/98 @ 101 (F) 8.000%, 01/01/15 465 625 46 - -------------------------------------------------------------------------------- Unaudited - --------------------------------------------------------------------- Face Amount (000) Value (000) - --------------------------------------------------------------------- Georgia--continued State, Ser C, GO 5.750%, 09/01/08 $ 2,000 $ 2,259 State, Tollway Authority, Georgia 400 Project, RB 5.000%, 07/01/09 1,280 1,359 Upper Oconee Basin, Water Authority, RB, Callable 07/01/08 @ 102 (FGIC) 5.000%, 07/01/12 500 518 Vidalia, Water & Sewer Revenue, ETM, RB (F) 6.000%, 07/01/07 605 687 Walker County, School District, GO 5.000%, 02/01/03 1,000 1,045 Walker, Dade & Catoosa Counties, Hutchinson Medical, Ser A, RB, Callable 10/01/07 @ 102 (FSA) 5.500%, 10/01/08 1,370 1,495 ---------- 80,542 ---------- Total Municipal Bonds (Cost $77,136) 80,542 ---------- Cash Equivalents (6.2%) AIM Management Institutional Tax-Free Portfolio (C) 1,783 1,783 SEI Tax-Exempt Trust Institutional Tax-Free Portfolio (C) 3,627 3,627 ---------- Total Cash Equivalents (Cost $5,410) 5,410 ---------- Total Investments (98.8%) (Cost $82,546) 85,952 ---------- Other Assets and Liabilities, Net (1.2%) 1,004 ---------- - --------------------------------------------------------------------- Value (000) - --------------------------------------------------------------------- Net Assets: Fund shares of the Trust Class (unlimited authorization -- no par value) based on 7,235,478 outstanding shares of beneficial interest $ 71,175 Fund shares of the Investor Class (unlimited authorization -- no par value) based on 329,926 outstanding shares of beneficial interest 3,202 Fund shares of the Flex Class (unlimited authorization -- no par value) based on 908,236 outstanding shares of beneficial interest 8,984 Accumulated net realized gain on investments 189 Net unrealized appreciation on investments 3,406 ---------- Total Net Assets 100.0% $ 86,956 ========== Net Asset Value, Offering and Redemption Price Per Share -- Trust Shares $ 10.26 ========== Net Asset Value and Redemption Price Per Share -- Investor Shares $ 10.28 ========== Maximum Offering Price Per Share -- Investor Shares ($10.28 / 96.25%) $ 10.68 ========== Net Asset Value, Offering and Redemption Price Per Share -- Flex Shares $ 10.26 ========== (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 63. 47 STATEMENT OF NET ASSETS - -------------------------------------------------------------------------------- STI CLASSIC FUNDS November 30, 1998 Investment Grade Bond Fund - --------------------------------------------------------------------- Face Amount (000) Value (000) - --------------------------------------------------------------------- U.S. Treasury Obligations (17.3%) U.S. Treasury Bonds 7.500%, 11/15/16 $ 46,250 $ 57,912 8.125%, 08/15/19 62,000 83,430 U.S. Treasury Note 5.625%, 12/31/02 6,815 7,047 ---------- Total U.S. Treasury Obligations (Cost $127,000) 148,389 ---------- Corporate Obligations (49.2%) Finance (30.6%) Bank of Boston 6.625%, 12/01/05 2,500 2,606 Bear Stearns 6.250%, 07/15/05 9,500 9,286 Capital One 6.530%, 11/26/99 14,500 14,609 Conseco 6.800%, 06/15/05 11,450 10,992 6.400%, 06/15/11 11,500 11,716 Countrywide Home Loan, MTN 6.510%, 02/11/05 23,300 23,329 Finova Capital 6.250%, 11/01/02 11,625 11,640 Ford Motor Credit 6.500%, 02/28/02 23,500 24,234 Great Western Financial 8.600%, 02/01/02 9,800 10,547 Homeside Lending, MTN 6.875%, 05/15/00 10,235 10,440 Household Finance 6.500%, 11/15/08 7,000 7,219 Liberty Property, MTN 6.600%, 06/05/02 12,000 12,285 Merrill Lynch 6.875%, 11/15/18 8,500 8,925 Merrill Lynch, MTN 6.060%, 10/15/01 24,200 24,472 - --------------------------------------------------------------------- Face Amount (000) Value (000) - --------------------------------------------------------------------- Finance--continued Morgan Stanley, MTN 6.090%, 03/09/01 $ 12,000 $ 12,105 Provident 7.000%, 07/15/18 16,500 16,087 Salomon 7.300%, 05/15/02 20,000 20,850 Salomon Smith Barney 6.250%, 01/15/05 20,000 20,075 Sprint Capital 6.125%, 11/15/08 11,625 11,814 ---------- 263,231 ---------- Industrial (18.6%) American Home Products 7.900%, 02/15/05 21,300 23,936 Bausch & Lomb 6.150%, 08/01/01 12,000 12,090 6.750%, 12/15/04 11,800 12,464 Dillards 6.430%, 08/01/04 27,000 27,877 Ikon Capital, MTN 6.730%, 06/15/01 13,000 13,357 Philip Morris 7.250%, 09/15/01 24,500 25,603 7.500%, 04/01/04 14,500 15,406 Praxair 6.900%, 11/01/06 17,725 18,301 Western Resources 6.250%, 08/15/03 11,000 11,110 ---------- 160,144 ---------- Total Corporate Obligations (Cost $416,082) 423,375 ---------- U.S. Government Agency Obligations (31.7%) FHLMC 8.000%, 06/01/02 2,755 2,818 7.500%, 09/01/03 8,911 9,101 5.125%, 10/15/08 23,250 22,921 48 - -------------------------------------------------------------------------------- Unaudited - --------------------------------------------------------------------- Face Amount (000) Value (000) - --------------------------------------------------------------------- U.S. Government Agency Obligations--continued FNMA 7.000%, 10/01/03 $ 31,664 $ 32,338 GNMA 8.000%, 12/15/22 107,000 111,414 GNMA TBA 7.000%, 11/19/28 92,000 94,156 ---------- Total U.S. Government Agency Obligations (Cost $271,864) 272,748 ---------- Repurchase Agreements (12.0%) Deutsche Bank 5.25%, dated 11/30/98, matures 12/01/98, repurchase price $81,903,788 (collateralized by various U.S. Treasury obligations: total market value $83,530,365) (H) 81,892 81,892 Greenwich 5.25%, dated 11/30/98, matures 12/01/98, repurchase price $9,230,101 (collateralized by U.S. Treasury Notes: total market value $9,418,466) (H) 9,229 9,229 SBC Warburg 5.25%, dated 11/30/98, matures 12/01/98, repurchase price $11,836,750 (collateralized by various U.S. Treasury obligations: total market value $12,073,446) (H) 11,835 11,835 ---------- Total Repurchase Agreements (Cost $102,956) 102,956 ---------- Total Investments (110.2%) (Cost $917,902) 947,468 ---------- - --------------------------------------------------------------------- Value (000) - --------------------------------------------------------------------- Other Assets and Liabilities, Net (-10.2%) Securities Purchased Payable $ (94,214) Other Assets and Liabilities, Net 6,551 ---------- Total Other Assets and Liabilities (87,663) ---------- Net Assets: Fund shares of the Trust Class (unlimited authorization -- no par value) based on 73,909,486 outstanding shares of beneficial interest 765,861 Fund shares of the Investor Class (unlimited authorization -- no par value) based on 3,044,362 outstanding shares of beneficial interest 31,977 Fund shares of the Flex Class (unlimited authorization -- no par value) based on 1,629,615 outstanding shares of beneficial interest 17,197 Accumulated net realized gain on investments 15,204 Net unrealized appreciation on investments 29,566 ---------- Total Net Assets 100.0% $ 859,805 ========== Net Asset Value, Offering and Redemption Price Per Share -- Trust Shares $ 10.94 ========== Net Asset Value and Redemption Price Per Share -- Investor Shares $ 10.94 ========== Maximum Offering Price Per Share -- Investor Shares ($10.94 / 96.25%) $ 11.37 ========== Net Asset Value, Offering and Redemption Price Per Share -- Flex Shares $ 10.95 ========== (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 63. 49 STATEMENT OF NET ASSETS - -------------------------------------------------------------------------------- STI CLASSIC FUNDS November 30, 1998 Investment Grade Tax-Exempt Bond Fund - --------------------------------------------------------------------- Face Amount (000) Value (000) - --------------------------------------------------------------------- Municipal Bonds (96.1%) Alabama (1.1%) State Docks Department, Docks Facility, RB (MBIA) 5.250%, 10/01/00 $ 1,000 $ 1,031 5.250%, 10/01/01 1,000 1,041 ---------- 2,072 ---------- Arizona (5.4%) Maricopa County, School District No. 69, Paradise Valley, GO, Callable 07/01/08 @ 101 (FSA) 5.250%, 07/01/11 1,000 1,067 Maricopa County, School District No. 80, Chandler, GO, Partially Prerefunded 07/01/01 @ 101 (FGIC) (F) 6.400%, 07/01/10 3,050 3,263 Mesa, Industrial Development Authority, Lutheran Health System, Ser A-1, GO (MBIA) 4.000%, 01/01/01 2,740 2,759 Phoenix, Ser A, GO 5.400%, 07/01/07 1,000 1,096 State, Transportation Board, Maricopa County Regional Area Roads, Ser A, RB (Ambac) 5.200%, 07/01/00 2,000 2,056 ---------- 10,241 ---------- California (4.5%) Los Angeles, Department of Water and Power, RB, Callable 10/15/08 @ 101 (MBIA) 5.500%, 10/15/12 5,630 6,168 Orange County, Loma Ridge Data Center Project, COP, Prefunded 06/01/19 @ 100 (AMBAC) (F) 6.000%, 06/01/21 2,075 2,367 ---------- 8,535 ---------- - --------------------------------------------------------------------- Face Amount (000) Value (000) - --------------------------------------------------------------------- Colorado (1.1%) Larimer County, School District, GO No. R1 Poudre, Callable 12/15/08 @ 100 5.500%, 12/15/13 $ 2,000 $ 2,132 ---------- District of Columbia (1.1%) District of Columbia, American College Obstetricians, RB, Callable 8/15/01 @ 102 (AMBAC) 6.500%, 08/15/18 1,930 2,092 ---------- Florida (8.5%) Miami-Dade County, School District, GO (FSA) 5.375%, 08/01/12 5,000 5,443 Orange County, State Health Facilities Authority, Orlando Regional Healthcare, RB (MBIA) 6.250%, 10/01/13 1,000 1,172 Reedy Creek, GO, Callable 06/01/08 @ 100 (MBIA) 5.250%, 06/01/13 1,405 1,477 State, Board of Education, Capital Outlay, Ser C, GO, Callable 06/01/03 @ 101 5.700%, 06/01/11 4,000 4,311 State, Finance Department, General Services, Environmental Protection, Preservation 2000, Ser B, RB Callable 07/01/08 @ 101 (FSA) 5.250%, 07/01/12 3,500 3,704 ---------- 16,107 ---------- Georgia (1.3%) Macon, Water Authority, RB, Callable 10/01/08 @ 102 5.250%, 10/01/13 1,000 1,051 50 - -------------------------------------------------------------------------------- Unaudited - --------------------------------------------------------------------- Face Amount (000) Value (000) - --------------------------------------------------------------------- Georgia--continued State, Municipal Electric Authority, Ser B, RB (FGIC) 6.250%, 01/01/12 $ 1,150 $ 1,331 ---------- 2,382 ---------- Illinois (11.9%) Chicago, Midway Airport, Ser C, RB (MBIA) 5.500%, 01/01/13 2,380 2,577 5.500%, 01/01/14 2,520 2,725 State, Financial Authority, Provena Health, Ser A, RB, Callable 05/15/08 @ 101 (MBIA) 5.500%, 05/15/11 2,500 2,673 State, Health Facilities Authority, Hospice Sisters Services, Ser A, RB, Callable 06/01/08 @ 101 (MBIA) 5.250%, 06/01/11 2,460 2,582 State, Health Facilities Authority, Trinity Medical Center Project, RB, Callable 07/01/02 @ 102 (FSA) 7.000%, 07/01/12 5,000 5,591 State, Regional Transportation Authority, RB (FGIC) 6.000%, 06/01/15 2,000 2,281 State, Regional Transportation Authority, Ser A, RB, Callable 06/01/02 @ 102 (AMBAC) 6.500%, 06/01/15 3,830 4,207 ---------- 22,636 ---------- Indiana (2.4%) Indianapolis, Gas Utility, Ser A, RB, Callable 08/15/08 @ 100 (AMBAC) 5.250%, 08/15/12 3,000 3,132 - --------------------------------------------------------------------- Face Amount (000) Value (000) - --------------------------------------------------------------------- Indiana--continued Purdue University, Student Fee, Ser P, RB 5.250%, 07/01/14 $ 1,260 $ 1,334 ---------- 4,466 ---------- Louisiana (1.5%) Jefferson, West Jefferson Medical Center, Ser A, RB (FSA) 5.000%, 01/01/08 755 789 5.250%, 01/01/09 1,870 1,989 ---------- 2,778 ---------- Maryland (2.2%) Baltimore, Metropolitan District, GO, Callable 07/01/02 @ 102 5.900%, 07/01/04 1,000 1,085 Baltimore, Water Project, Ser A, RB, Callable 07/01/06 @ 101 (FGIC) 5.800%, 07/01/15 2,800 3,050 ---------- 4,135 ---------- Massachusetts (0.7%) Boston, City Hospital Project, RB, Prerefunded 08/15/98 @ 100 (FHA) (F) 7.650%, 02/15/10 1,260 1,370 ---------- Minnesota (0.6%) Minneapolis, Special School District No 001,Ser A,COP, Callable 02/01/06 @ 100 (MBIA) 5.700%, 02/01/09 1,000 1,084 ---------- Missouri (1.6%) St. Louis, Water Utility Improvements, RB, Callable 07/01/04 @ 102 (FGIC) 5.950%, 07/01/06 1,170 1,298 51 STATEMENT OF NET ASSETS - -------------------------------------------------------------------------------- STI CLASSIC FUNDS November 30, 1998 Investment Grade Tax-Exempt Bond Fund--continued - --------------------------------------------------------------------- Face Amount (000) Value (000) - --------------------------------------------------------------------- Missouri--continued State, Health & Educational Facilities Authority, Health Care Projects, Ser B, ETM, RB, Callable 06/01/00 @ 102 (MBIA) (F) 7.000%, 06/01/05 $ 1,500 $ 1,663 ---------- 2,961 ---------- New Jersey (0.9%) State, Health Care Facilities Financing Authority, Cathedral Health Services, RB (MBIA) (FHA) 5.500%, 02/01/11 1,605 1,740 ---------- New York (11.4%) New York, Ser F, GO, Callable 08/01/06 @ 101.5 5.900%, 08/01/09 5,150 5,633 New York, Ser H, GO, Callable 08/01/08 @ 101 (FSA) 5.500%, 08/01/13 3,000 3,221 New York, Ser J, GO, Callable 08/01/08 @ 101 5.375%, 08/01/13 3,800 3,966 Oneida-Herkimer, Solid Waste Management Authority, RB (FSA) 5.500%, 04/01/14 1,285 1,392 State, Dormitory Authority, RB, Callable 07/01/14 @ 100 (FSA) 5.750%, 07/01/18 1,800 2,018 State, Dormitory Authority, Ser A, RB (AMBAC) 6.000%, 07/01/10 1,550 1,776 5.750%, 07/01/13 1,000 1,122 State, Dormitory Authority, Ser A, RB (FGIC-TCRS) 5.750%, 07/01/07 1,000 1,109 - -------------------------------------------------------------------- Face Amount (000) Value (000) - --------------------------------------------------------------------- New York--continued State, Dormitory Authority, Ser A, RB (MBIA) 5.750%, 07/01/13 $ 1,300 $ 1,459 ---------- 21,696 ---------- North Carolina (1.4%) State, Medical Care Community Hospital, Mercy Hospital Project, ETM, RB, Callable 08/01/02 @ 102 (F) 6.500%, 08/01/15 1,000 1,106 State, Medical Care Community Hospital, Rex Hospital Project, RB 5.100%, 06/01/00 1,500 1,535 ---------- 2,641 ---------- Ohio (0.9%) Cleveland, City School District, Ser A, GO, Callable 12/01/02 @ 102 (FGIC) 5.875%, 12/01/11 1,650 1,792 ---------- Pennsylvania (8.7%) Allegheny County, Hospital Development Authority, Ohio Valley General, RB, Callable 04/01/03 @ 100 (MBIA) 5.875%, 04/01/11 1,500 1,602 Allegheny County, Pittsburgh International Airport, Ser A, RB (MBIA) 5.750%, 01/01/11 2,500 2,789 Berks County, GO, Callable 11/15/02 @ 100 (FGIC) 5.750%, 11/15/12 2,255 2,402 Spring Ford, School District, GO, Prerefunded 02/01/04 @ 102.5 (AMBAC) 6.500%, 02/01/18 6,260 7,137 52 - -------------------------------------------------------------------------------- Unaudited - --------------------------------------------------------------------- Face Amount (000) Value (000) - --------------------------------------------------------------------- Pennsylvania--continued State, University of Pennsylvania, Health Services, Ser A, RB, Callable 07/01/08 @ 100 (MBIA) 5.250%, 01/01/12 $ 2,450 $ 2,570 ---------- 16,500 ---------- South Dakota (3.8%) State, Health & Educational Facility Authority, St. Lukes Midland Regional Medical, RB, Callable 07/01/01 @ 102 (MBIA) 6.625%, 07/01/11 6,675 7,222 ---------- Tennessee (3.4%) Metropolitan Nashville Airport, Ser C, RB, Callable 07/01/01 @ 102 (FGIC) 6.600%, 07/01/15 3,900 4,227 Shelby County, GO, Prerefunded 12/01/00 @ 102 (G) 6.250%, 12/01/09 2,000 2,146 ---------- 6,373 ---------- Texas (5.6%) Amarillo, Health Facilities Corporation, Baptist Saint Anthonys Hospital, RB (FSA) 5.500%, 01/01/13 1,000 1,078 Lamar, School District, GO, Callable 02/15/08 @ 100 5.250%, 02/15/12 2,750 2,876 North Central, Health Facility Development, Health Resources System, Ser B, RB, Callable 02/15/08 @ 102 (MBIA) 5.750%, 02/15/13 2,120 2,327 San Antonio, Electric & Gas, Ser A, RB, Callable 02/01/09 @ 101 5.250%, 02/01/13 2,000 2,098 - --------------------------------------------------------------------- Face Amount (000) Value (000) - --------------------------------------------------------------------- Texas--continued Travis County, GO, Callable 03/01/08 @ 100 5.000%, 03/01/09 $ 2,055 $ 2,162 ---------- 10,541 ---------- Utah (5.5%) State, Intermountain Power Agency, Power Supply, Ser A, RB, Callable 07/01/08 @ 101 (MBIA) 5.250%, 07/01/12 5,000 5,244 State, Intermountain Power Agency, Power Supply, Ser E, RB (FSA) 6.250%, 07/01/08 3,000 3,461 6.250%, 07/01/09 1,545 1,786 ---------- 10,491 ---------- Washington (7.3%) King County, School District No 415, GO, Callable 12/01/08 @ 100 (FGIC) 5.250%, 12/01/12 2,505 2,632 5.250%, 12/01/13 1,250 1,306 Spokane County, School District No 356, Ser A, GO, Callable 06/01/08 @ 100 (FGIC) 5.250%, 12/01/12 1,740 1,829 State, Health Care Facilities, Swedish Health Systems, RB, Callable 11/15/08 @ 101 (AMBAC) 5.500%, 11/15/12 2,000 2,150 State, Ser B, GO, Callable 05/01/04 @ 100 5.750%, 05/01/14 5,600 6,017 ---------- 13,934 ---------- 53 STATEMENT OF NET ASSETS - -------------------------------------------------------------------------------- STI CLASSIC FUNDS November 30, 1998 Investment Grade Tax-Exempt Bond Fund--concluded - --------------------------------------------------------------------- Face Amount (000) Value (000) - --------------------------------------------------------------------- West Virginia (1.1%) West Virginia University, University Projects, Ser A, RB (MBIA) 5.500%, 04/01/13 $ 1,000 $ 1,082 5.500%, 04/01/14 1,000 1,080 ---------- 2,162 ---------- Wisconsin (2.2%) State, Health & Elderly Facility, Childrens Hospital of Wisconsin, RB (AMBAC) 5.625%, 02/15/13 2,690 2,925 5.625%, 02/15/14 1,250 1,358 ---------- 4,283 ---------- Total Municipal Bonds (Cost $178,572) 182,366 ---------- Repurchase Agreement (1.7%) Deutsche Bank 5.25%, dated 11/30/98, matures 12/01/98, repurchase price $3,287,076 (collateralized by U.S. Treasury Bond: market value $3,353,008) (H) 3,287 3,287 ---------- Total Repurchase Agreement (Cost $3,287) 3,287 ---------- Cash Equivalents (8.0%) AIM Management Institutional Tax-Free Portfolio (C) 9,087 9,087 SEI Tax-Exempt Trust Institutional Tax-Free Portfolio (C) 6,046 6,046 ---------- Total Cash Equivalents (Cost $15,133) 15,133 ---------- Total Investments (105.8%) (Cost $196,992) 200,786 ---------- - --------------------------------------------------------------------- Value (000) - --------------------------------------------------------------------- Other Assets and Liabilities, Net (-5.8%) Securities Purchased Payable $ (13,006) Other Assets and Liabilities, Net 2,027 ---------- Total Other Assets and Liabilities (10,979) ---------- Net Assets: Fund shares of the Trust Class (unlimited authorization -- no par value) based on 13,212,590 outstanding shares of beneficial interest 146,373 Fund shares of the Investor Class (unlimited authorization -- no par value) based on 2,296,760 outstanding shares of beneficial interest 24,304 Fund shares of the Flex Class (unlimited authorization -- no par value) based on 809,368 outstanding shares of beneficial interest 9,184 Accumulated net realized gain on investments 6,152 Net unrealized appreciation on investments 3,794 ---------- Total Net Assets 100.0% $ 189,807 ========== Net Asset Value, Offering and Redemption Price Per Share -- Trust Shares $ 11.63 ========== Net Asset Value and Redemption Price Per Share -- Investor Shares $ 11.64 ========== Maximum Offering Price Per Share -- Investor Shares ($11.64 / 96.25%) $ 12.09 ========== Net Asset Value, Offering and Redemption Price Per Share -- Flex Shares $ 11.63 ========== (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 63. 54 - -------------------------------------------------------------------------------- Unaudited Limited-Term Federal Mortgage Securities Fund - --------------------------------------------------------------------- Face Amount (000) Value (000) - --------------------------------------------------------------------- U.S. Treasury Obligations (10.1%) U.S. Treasury Notes 6.375%, 05/15/00 $ 1,000 $ 1,024 6.250%, 10/31/01 5,000 5,214 6.250%, 02/15/03 5,000 5,293 5.750%, 08/15/03 3,000 3,135 ---------- Total U.S. Treasury Obligations (Cost $14,802) 14,666 ---------- U.S. Agency Mortgage-Backed Obligations (88.4%) FHLMC 8.000%, 06/01/02 393 403 7.000%, 10/01/02 2,996 3,025 8.000%, 12/01/02 1,583 1,613 7.000%, 03/01/04 8,747 8,923 6.500%, 06/01/13 10,087 10,236 FHLMC REMIC, Ser 1614-H 6.000%, 06/15/20 4,550 4,575 FHLMC REMIC, Ser 1624-KC 6.000%, 06/15/08 11,084 11,214 FHLMC REMIC, Ser 1666-E 6.000%, 12/15/19 5,000 5,032 FHLMC REMIC, Ser 29-Q 7.500%, 06/25/20 15,000 15,415 FNMA 7.000%, 10/01/03 8,795 8,983 7.000%, 03/01/04 9,639 9,844 8.500%, 04/01/17 702 739 FNMA REMIC, Ser 1993-206G 6.000%, 04/25/19 11,000 10,989 FNMA REMIC, Ser 1993-223PH 6.050%, 10/25/22 5,375 5,394 GNMA 9.000%, 11/15/17 916 984 8.000%, 12/15/22 20,000 20,825 GNMA TBA 7.000%, 11/19/28 10,000 10,234 ---------- Total U.S. Agency Mortgage-Backed Obligations (Cost $127,138) 128,428 ---------- - --------------------------------------------------------------------- Face Amount (000) Value (000) - --------------------------------------------------------------------- Repurchase Agreement (8.3%) Morgan Stanley 5.40%, dated 11/30/98, matures 12/01/98, repurchase price $12,130,419 (collateralized by FHLMC and FNMA obligations: total market value $12,653,317) (H) $ 12,129 $ 12,129 ---------- Total Repurchase Agreement (Cost $12,129) 12,129 ---------- Total Investments (106.8%) (Cost $154,069) 155,223 ---------- Other Assets and Liabilities, Net (-6.8%) Securities Purchased Payable (10,241) Other Assets and Liabilities, Net 369 ---------- Total Other Assets and Liabilities (9,872) ---------- Net Assets: Fund shares of the Trust Class (unlimited authorization -- no par value) based on 13,798,375 outstanding shares of beneficial interest 138,487 Fund shares of the Investor Class (unlimited authorization -- no par value) based on 229,800 outstanding shares of beneficial interest 2,306 Fund shares of the Flex Class (unlimited authorization -- no par value) based on 160,747 outstanding shares of beneficial interest 1,628 Overdistributed net investment income (3) Accumulated net realized gain on investments 1,779 Net unrealized appreciation on investments 1,154 ---------- Total Net Assets 100.0% $ 145,351 ========== 55 STATEMENT OF NET ASSETS - -------------------------------------------------------------------------------- STI CLASSIC FUNDS November 30, 1998 Limited-Term Federal Mortgage Securities Fund--concluded - --------------------------------------------------------------------- Value (000) - --------------------------------------------------------------------- Net Asset Value, Offering and Redemption Price Per Share -- Trust Shares $ 10.24 ========== Net Asset Value and Redemption Price Per Share -- Investor Shares $ 10.23 ========== Maximum Offering Price Per Share -- Investor Shares ($10.23 / 97.50%) $ 10.49 ========== Net Asset Value, Offering and Redemption Price Per Share -- Flex Shares $ 10.25 ========== (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 63. 56 - -------------------------------------------------------------------------------- Unaudited Short-Term Bond Fund - --------------------------------------------------------------------- Face Amount (000) Value (000) - --------------------------------------------------------------------- U.S. Treasury Obligations (33.6%) U.S. Treasury Notes 5.500%, 02/28/99 $ 4,750 $ 4,761 6.250%, 05/31/99 7,000 7,055 5.875%, 07/31/99 5,000 5,037 5.625%, 10/31/99 3,000 3,025 6.375%, 09/30/01 3,000 3,135 7.500%, 11/15/01 9,000 9,700 7.875%, 11/15/04 5,000 5,799 U.S. Treasury STRIPS 0.000%, 08/15/03 1,250 1,008 0.000%, 11/15/04 8,000 6,042 ---------- Total U.S. Treasury Obligations (Cost $44,805) 45,562 ---------- Corporate Obligations (47.6%) Finance (21.7%) American Express 8.500%, 08/15/01 770 834 6.750%, 06/23/04 3,000 3,184 American General 5.900%, 01/15/03 2,000 2,017 6.250%, 03/15/03 1,100 1,123 Associates Corp, MTN 7.080%, 04/15/03 1,500 1,594 Associates Corp 6.450%, 10/15/01 1,750 1,796 Bankers Trust New York 6.625%, 07/30/99 2,250 2,258 Beneficial, MTN 6.490%, 09/27/00 1,000 1,015 Chrysler Financial 9.500%, 12/15/99 1,000 1,041 Dean Witter, Discover, MTN 6.000%, 02/08/01 1,000 1,019 First Chicago NBD, MTN 6.500%, 11/01/01 2,250 2,323 - --------------------------------------------------------------------- Face Amount (000) Value (000) - --------------------------------------------------------------------- Finance--continued Ford Motor Credit 6.500%, 02/28/02 $ 725 $ 748 6.000%, 01/14/03 2,000 2,045 GMAC 5.750%, 11/10/03 1,250 1,256 Household Finance 6.250%, 08/15/03 2,000 2,042 International Lease, MTN 5.500%, 09/29/03 2,000 1,977 National City 6.750%, 06/01/29 2,000 2,015 Norwest Financial 7.200%, 04/01/04 1,000 1,083 ---------- 29,370 ---------- Industrial (21.5%) Clark Equipment 9.750%, 03/01/01 1,750 1,901 Computer Associates 6.375%, 04/15/05 2,300 2,260 Dayton Hudson 6.800%, 10/01/01 2,250 2,323 5.950%, 06/15/10 500 504 General Foods 6.000%, 06/15/01 500 498 IBM, MTN 5.800%, 05/15/01 1,250 1,270 Philip Morris 7.500%, 01/15/02 1,250 1,319 RJR Nabisco 6.800%, 09/01/01 1,500 1,543 Sears Roebuck Acceptance, MTN 6.920%, 06/17/04 2,250 2,416 Tenneco 10.075%, 02/01/01 3,000 3,285 TRW, MTN 9.000%, 02/09/01 1,000 1,078 57 STATEMENT OF NET ASSETS - -------------------------------------------------------------------------------- STI CLASSIC FUNDS November 30, 1998 Short-Term Bond Fund--concluded - --------------------------------------------------------------------- Face Amount (000) Value (000) - --------------------------------------------------------------------- Industrial--continued Union Pacific 7.060%, 05/15/03 $ 1,500 $ 1,607 USAA, Cl B, MTN 8.880%, 09/21/99 2,000 2,054 Wal-Mart 5.850%, 06/01/18 3,000 3,030 Walt Disney Euro, MTN 6.250%, 06/21/99 1,500 1,510 Walt Disney, MTN 5.600%, 01/13/00 2,500 2,513 ---------- 29,111 ---------- Utilities (4.5%) Bellsouth Savings 9.125%, 07/01/03 1,639 1,794 Indiana & Michigan Power, MTN 6.400%, 03/01/00 2,250 2,284 NYNEX Credit, MTN 6.900%, 06/15/99 2,000 2,016 ---------- 6,094 ---------- Total Corporate Obligations (Cost $63,231) 64,575 ---------- U.S. Agency Mortgage-Backed Obligations (4.2%) FHLB 5.510%, 02/06/01 2,750 2,785 FHLMC 8.000%, 01/01/00 354 364 5.375%, 04/13/00 1,000 1,010 6.500%, 12/01/00 1,540 1,562 FNMA 8.500%, 11/01/01 20 21 ---------- Total U.S. Agency Mortgage- Backed Obligations (Cost $5,644) 5,742 ---------- - --------------------------------------------------------------------- Face Amount (000)/ Shares Value (000) - --------------------------------------------------------------------- Asset-Backed Securities (13.2%) Arcadia Auto Receivables Trust, Ser 1997-B, Cl A3 6.300%, 07/16/01 $ 2,411 $ 2,423 Discover Card Master Trust, Ser 1997-2, Cl A 6.792%, 04/16/10 3,000 3,005 Metris Master Trust, Ser 1997-1, Cl A 6.870%, 10/20/05 2,000 2,066 Money Store Home Equity Trust, Cl B 6.290%, 01/15/06 3,214 3,210 6.415%, 04/15/10 973 972 SLMA, Cl A 5.135%, 04/25/04 670 664 5.050%, 10/25/04 1,469 1,468 4.598%, 04/25/06 4,091 4,035 ---------- Total Asset-Backed Securities (Cost $17,790) 17,843 ---------- Cash Equivalent (2.2%) SEI Daily Income Trust Prime Obligation Portfolio (C) 2,935 2,935 ---------- Total Cash Equivalent (Cost $2,935) 2,935 ---------- Total Investments (100.8%) (Cost $134,405) 136,657 ---------- Other Assets and Liabilities, Net (-0.8%) (1,038) 58 - -------------------------------------------------------------------------------- Unaudited - --------------------------------------------------------------------- Value (000) - --------------------------------------------------------------------- Net Assets: Fund shares of the Trust Class (unlimited authorization -- no par value) based on 12,951,587 outstanding shares of beneficial interest $ 129,246 Fund shares of the Investor Class (unlimited authorization -- no par value) based on 179,890 outstanding shares of beneficial interest 1,797 Fund shares of the Flex Class (unlimited authorization -- no par value) based on 189,651 outstanding shares of beneficial interest 1,905 Accumulated net realized gain on investments 419 Net unrealized appreciation on investments 2,252 ---------- Total Net Assets 100.0% $ 135,619 ========== - --------------------------------------------------------------------- Value (000) - --------------------------------------------------------------------- Net Asset Value, Offering and Redemption Price Per Share -- Trust Shares $ 10.18 ========== Net Asset Value and Redemption Price Per Share -- Investor Shares $ 10.20 ========== Maximum Offering Price Per Share -- Investor Shares ($10.20 / 98.00%) $ 10.41 ========== Net Asset Value, Offering and Redemption Price Per Share -- Flex Shares $ 10.20 ========== (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 63. 59 STATEMENT OF NET ASSETS - -------------------------------------------------------------------------------- STI CLASSIC FUNDS November 30, 1998 Short-Term U.S. Treasury Securities Fund - --------------------------------------------------------------------- Face Amount (000)/ Shares Value (000) - --------------------------------------------------------------------- U.S. Treasury Obligations (95.9%) U.S. Treasury Notes 6.000%, 08/15/99 $ 2,500 $ 2,522 5.875%, 11/15/99 2,000 2,022 5.625%, 11/30/99 13,500 13,624 5.875%, 02/15/00 2,250 2,282 6.875%, 03/31/00 1,250 1,285 6.125%, 07/31/00 2,250 2,304 5.750%, 10/31/00 2,000 2,042 5.375%, 02/15/01 12,800 13,008 6.250%, 10/31/01 3,000 3,128 7.500%, 11/15/01 7,500 8,084 ---------- Total U.S. Treasury Obligations (Cost $49,699) 50,301 ---------- Cash Equivalent (1.1%) SEI Daily Income Trust Treasury II Portfolio (C) 567 567 ---------- Total Cash Equivalent (Cost $567) 567 ---------- Total Investments (97.0%) (Cost $50,266) 50,868 ---------- Other Assets and Liabilities, Net (3.0%) 1,570 ---------- - --------------------------------------------------------------------- Value (000) - --------------------------------------------------------------------- Net Assets: Fund shares of the Trust Class (unlimited authorization -- no par value) based on 4,681,290 outstanding shares of beneficial interest $ 46,713 Fund shares of the Investor Class (unlimited authorization -- no par value) based on 300,666 outstanding shares of beneficial interest 3,064 Fund shares of the Flex Class (unlimited authorization -- no par value) based on 228,085 outstanding shares of beneficial interest 2,282 Accumulated net realized loss on investments (223) Net unrealized appreciation on investments 602 ---------- Total Net Assets 100.0% $ 52,438 ========== Net Asset Value, Offering and Redemption Price Per Share -- Trust Shares $ 10.07 ========== Net Asset Value and Redemption Price Per Share -- Investor Shares $ 10.07 ========== Maximum Offering Price Per Share -- Investor Shares ($10.07 / 99.00%) $ 10.17 ========== Net Asset Value, Offering and Redemption Price Per Share -- Flex Shares $ 10.04 ========== (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 63. 60 - -------------------------------------------------------------------------------- Unaudited U.S. Government Securities Fund - --------------------------------------------------------------------- Face Amount (000) Value (000) - --------------------------------------------------------------------- U.S. Treasury Obligations (25.7%) U.S. Treasury Bonds 7.750%, 11/30/99 $ 200 $ 206 7.250%, 05/15/16 1,000 1,224 6.875%, 08/15/25 1,000 1,221 6.000%, 02/15/26 2,000 2,199 U.S. Treasury Notes 8.500%, 11/15/00 1,000 1,072 8.000%, 05/15/01 200 215 7.500%, 11/15/01 200 216 7.500%, 05/15/02 750 816 7.250%, 05/15/04 500 560 7.875%, 11/15/04 275 319 7.500%, 02/15/05 500 573 6.500%, 10/15/06 2,000 2,215 6.625%, 05/15/07 1,050 1,179 7.625%, 02/15/25 400 530 ---------- Total U.S. Treasury Obligations (Cost $11,477) 12,545 ---------- U.S. Agency Mortgage-Backed Obligations (69.7%) FHLMC 6.000%, 02/01/01 74 75 7.000%, 01/01/09 81 83 7.000%, 04/01/09 149 153 7.000%, 04/01/09 118 121 7.000%, 08/01/10 592 606 7.000%, 05/01/12 843 863 6.500%, 12/01/12 1,493 1,517 FHLMC REMIC, Ser 2039, Cl PC 6.000%, 05/15/09 1,000 1,001 FNMA 6.000%, 11/25/07 815 825 7.500%, 06/01/11 613 631 7.000%, 09/17/11 901 923 7.000%, 05/01/12 811 830 7.000%, 06/01/12 732 749 7.000%, 07/01/12 790 809 - --------------------------------------------------------------------- Face Amount (000) Value (000) - --------------------------------------------------------------------- FNMA--continued 7.000%, 10/25/16 $ 635 $ 648 6.500%, 07/01/18 1,027 1,040 6.290%, 08/01/18 1,494 1,496 6.500%, 08/01/18 985 992 7.500%, 04/01/27 692 712 6.000%, 03/01/28 1,005 992 6.500%, 03/01/28 843 849 FNMA REMIC, Ser 1990-143, Cl J 8.750%, 12/25/20 86 91 FNMA REMIC, Ser 1993-156, Cl B 6.500%, 04/25/18 100 102 FNMA REMIC, Ser 1996-68, Cl C 6.500%, 08/18/18 1,000 1,006 FNMA REMIC, Ser 1996-9, Cl H 6.500%, 11/25/13 1,337 1,358 FNMA REMIC, Ser 1997-34, Cl VC 7.500%, 05/01/12 1,000 1,031 FNMA REMIC, Ser 1997-6, Cl H 7.000%, 08/18/08 1,058 1,102 FNMA REMIC, Ser G93-40, Cl VC 6.500%, 08/25/10 261 260 GNMA 7.500%, 10/20/09 47 48 8.250%, 01/15/12 66 69 9.000%, 04/15/17 297 316 8.500%, 05/15/17 695 736 10.000%, 06/15/19 2 3 7.500%, 05/15/22 444 459 7.000%, 11/15/22 392 402 8.000%, 02/15/23 23 24 8.500%, 03/15/23 44 47 7.500%, 04/15/23 112 116 7.500%, 09/15/23 738 763 6.500%, 10/15/23 894 904 7.000%, 01/15/24 126 130 7.500%, 04/15/24 674 697 7.000%, 06/15/24 752 770 61 STATEMENT OF NET ASSETS - -------------------------------------------------------------------------------- STI CLASSIC FUNDS November 30, 1998 U.S. Government Securities Fund--concluded - -------------------------------------------------------------------------------- Face Amount (000)/ Shares Value (000) - -------------------------------------------------------------------------------- GNMA--continued 8.000%, 08/15/24 $ 66 $ 69 8.000%, 09/15/24 19 21 8.000%, 10/15/24 20 21 8.000%, 11/15/24 23 24 8.500%, 12/15/24 55 59 8.500%, 02/15/25 16 17 7.000%, 12/15/25 432 443 6.500%, 02/15/28 983 993 6.500%, 05/20/28 1,969 1,989 6.500%, 09/15/28 1,993 2,014 GNMA REMIC, Ser 1995-6A, Cl E 7.500%, 05/20/23 1,000 1,021 GNMA REMIC, Ser 1998-9, Cl D 6.500%, 08/20/24 1,000 999 ---------- Total U.S. Agency Mortgage- Backed Obligations (Cost $33,383) 34,019 ---------- Cash Equivalents (4.6%) SEI Daily Income Trust Government II Portfolio (C) 2,228 2,228 SEI Daily Income Trust Treasury II Portfolio (C) 31 31 ---------- Total Cash Equivalents (Cost $2,259) 2,259 ---------- Total Investments (100.0%) (Cost $47,119) 48,823 ---------- Other Assets and Liabilities, Net (-0.0%) (9) ---------- - --------------------------------------------------------------------- Value (000) - --------------------------------------------------------------------- Net Assets: Fund shares of the Trust Class (unlimited authorization -- no par value) based on 3,872,118 outstanding shares of beneficial interest $ 39,731 Fund shares of the Investor Class (unlimited authorization -- no par value) based on 287,783 outstanding shares of beneficial interest 2,924 Fund shares of the Flex Class (unlimited authorization -- no par value) based on 432,416 outstanding shares of beneficial interest 4,463 Accumulated net realized loss on investments (8) Net unrealized appreciation on investments 1,704 ---------- Total Net Assets 100.0% $ 48,814 ========== Net Asset Value, Offering and Redemption Price Per Share -- Trust Shares $ 10.63 ========== Net Asset Value and Redemption Price Per Share -- Investor Shares $ 10.63 ========== Maximum Offering Price Per Share -- Investor Shares ($10.63 / 96.25%) $ 11.04 ========== Net Asset Value, Offering and Redemption Price Per Share -- Flex Shares $ 10.63 ========== (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 63. 62 - -------------------------------------------------------------------------------- Unaudited Key to Abbreviations used in the Statement of Net Assets ADR American Depository Receipt AMBAC Security insured by the American Municipal Bond Assurance Corporation AMT Alternative Minimum Tax Cl Class COP Certificate of Participation CV Convertible Security ETM Escrowed to Maturity F Foreign Registry Shares FGIC Security insured by the Financial Guaranty Insurance Company FHLB Federal Home Loan Bank FHLMC Federal Home Loan Mortgage Corporation FNMA Federal National Mortgage Association FSA Security insured by Financial Security Assurance GDR Global Depository Receipt GNMA Government National Mortgage Association GO General Obligation MBIA Security insured by the Municipal Bond Insurance Association MTN Medium Term Note PFD Preferred Stock PLC Public Limited Corporation 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 STRYPES Structured Yield Product Exchange Securities TBA To Be Announced (see Notes to Financial Statements) TCRS Transferrable Custodial Receipts TRACES Trust Automatic Common Exchange Securities * Non-income producing security (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 November 30, 1998. (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) Collateralized by U.S. government Securities (G) Collateralized by State and Local Government Securities (H) Tri-Party Repurchase Agreement 63 STATEMENT OF OPERATIONS (000) - -------------------------------------------------------------------------------- STI CLASSIC FUNDS For The Period Ended November 30, 1998
Capital Balanced Growth Fund Fund ---------- --------- 06/01/98- 06/01/98- 11/30/98 11/30/98 ---------- --------- Income: Interest Income ............................................................. $ 2,992 $ 5,244 Dividend Income ............................................................. 751 10,870 Less: Foreign Taxes Withheld ................................................ -- -- ------- -------- Total Investment Income ..................................................... 3,743 16,114 ------- -------- Expenses: Investment Advisory Fees .................................................... 1,104 10,871 Less: Investment Advisory Fees Waived ....................................... (107) (888) Administrator Fees .......................................................... 91 741 Transfer Agent Fees -- Trust Shares ......................................... 7 36 Transfer Agent Fees -- Investor Shares ...................................... 5 11 Transfer Agent Fees -- Flex Shares .......................................... 17 66 Transfer Agent Out of Pocket Fees ........................................... 8 73 Printing Expenses ........................................................... 10 100 Custody Fees ................................................................ 2 19 Professional Fees ........................................................... 4 42 Trustee Fees ................................................................ 2 16 Registration Fees ........................................................... 2 8 Distribution Fees -- Investor Shares ........................................ 13 907 Less: Distribution Fees Waived -- Investor Shares ........................... (4) (145) Distribution Fees -- Flex Shares ............................................ 169 574 Less: Distribution Fees Waived -- Flex Shares ............................... (6) -- Insurance and Other Fees .................................................... 3 33 Amortization of Deferred Organization Costs ................................. -- -- ------- -------- Total Expenses .............................................................. 1,320 12,464 ------- -------- Net Investment Income (Loss) ................................................ 2,423 3,650 ------- -------- Net Realized and Unrealized Gain (Loss) on Investments: Net Realized Gain (Loss) on Securities Sold ................................. 4,002 54,281 Net Realized 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 ......... 5,744 64,689 ------- -------- Total Net Realized and Unrealized Gain (Loss) on Investments ............................................................ 9,746 118,970 ------- -------- Net Increase (Decrease) in Net Assets from Operations ....................... $12,169 $122,620 ======= ========
* Commenced operations Amounts designated as "--" are either $0 or round to $0. The accompanying notes are an integral part of the financial statements. 64 - -------------------------------------------------------------------------------- Unaudited
Emerging International International Markets Equity Equity Equity Fund Fund Index Fund ----------- ------------- ------------- 06/01/98- 06/01/98- 06/01/98- 11/30/98 11/30/98 11/30/98 ---------- ------------- ------------- Income: Interest Income ............................................................. $ 88 $ 1,243 $ 25 Dividend Income ............................................................. 461 5,528 487 Less: Foreign Taxes Withheld ................................................ (38) (309) (7) ------- -------- ------- Total Investment Income ..................................................... 511 6,462 505 ------- -------- ------- Expenses: Investment Advisory Fees .................................................... 185 3,819 272 Less: Investment Advisory Fees Waived ....................................... (9) (129) (40) Administrator Fees .......................................................... 11 240 24 Transfer Agent Fees -- Trust Shares ......................................... 8 9 7 Transfer Agent Fees -- Investor Shares ...................................... -- 9 7 Transfer Agent Fees -- Flex Shares .......................................... -- 15 7 Transfer Agent Out of Pocket Fees ........................................... 1 20 3 Printing Expenses ........................................................... 3 16 2 Custody Fees ................................................................ 5 510 35 Professional Fees ........................................................... 1 10 2 Trustee Fees ................................................................ -- 3 -- Registration Fees ........................................................... -- 11 -- Distribution Fees -- Investor Shares ........................................ -- 25 11 Less: Distribution Fees Waived -- Investor Shares ........................... -- (2) (1) Distribution Fees -- Flex Shares ............................................ -- 93 5 Less: Distribution Fees Waived -- Flex Shares ............................... -- -- -- Insurance and Other Fees .................................................... 7 7 7 Amortization of Deferred Organization Costs ................................. 11 1 2 ------- -------- ------- Total Expenses .............................................................. 223 4,657 343 ------- -------- ------- Net Investment Income (Loss) ................................................ 288 1,805 162 ------- -------- ------- Net Realized and Unrealized Gain (Loss) on Investments: Net Realized Gain (Loss) on Securities Sold ................................. (3,234) (2,403) 7,424 Net Realized Loss on Foreign Currency Transactions .......................... (16) (316) (29) Net Change in Unrealized Appreciation (Depreciation) on Foreign Currency and Translation of Other Assets and Liabilities in Foreign Currency ........... (50) (28) 15 Net Change in Unrealized Appreciation (Depreciation) on Investments ......... (2,919) (72,911) (6,436) ------- -------- ------- Total Net Realized and Unrealized Gain (Loss) on Investments ............................................................ (6,219) (75,658) 974 ------- -------- ------- Net Increase (Decrease) in Net Assets from Operations ....................... $(5,931) $(73,853) $ 1,136 ======= ======== ======= Mid-Cap Small Cap Small Cap Equity Equity Growth Fund Fund Stock Fund ---------- ---------- ---------- 06/01/98- 06/01/98- 10/08/98*- 11/30/98 11/30/98 11/30/98 ---------- ---------- ---------- Income: Interest Income ............................................................. $ 560 $ 296 $ 10 Dividend Income ............................................................. 674 4,046 4 Less: Foreign Taxes Withheld ................................................ -- -- -- -------- -------- ------ Total Investment Income ..................................................... 1,234 4,342 14 -------- -------- ------ Expenses: Investment Advisory Fees .................................................... 1,944 2,031 12 Less: Investment Advisory Fees Waived ....................................... (186) (115) (15) Administrator Fees .......................................................... 133 138 1 Transfer Agent Fees -- Trust Shares ......................................... 9 8 2 Transfer Agent Fees -- Investor Shares ...................................... 3 -- -- Transfer Agent Fees -- Flex Shares .......................................... 17 42 2 Transfer Agent Out of Pocket Fees ........................................... 19 15 11 Printing Expenses ........................................................... 19 6 -- Custody Fees ................................................................ 11 3 -- Professional Fees ........................................................... 11 9 -- Trustee Fees ................................................................ 4 3 -- Registration Fees ........................................................... 4 51 -- Distribution Fees -- Investor Shares ........................................ 47 -- -- Less: Distribution Fees Waived -- Investor Shares ........................... (4) -- -- Distribution Fees -- Flex Shares ............................................ 88 161 -- Less: Distribution Fees Waived -- Flex Shares ............................... (12) (34) -- Insurance and Other Fees .................................................... 9 -- -- Amortization of Deferred Organization Costs ................................. -- 2 -- -------- -------- ------ Total Expenses .............................................................. 2,116 2,320 13 -------- -------- ------ Net Investment Income (Loss) ................................................ (882) 2,022 1 -------- -------- ------ Net Realized and Unrealized Gain (Loss) on Investments: Net Realized Gain (Loss) on Securities Sold ................................. (18,675) (15,216) 31 Net Realized 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 ......... (13,698) (61,471) 1,360 -------- -------- ------ Total Net Realized and Unrealized Gain (Loss) on Investments ............................................................ (32,373) (76,687) 1,391 -------- -------- ------ Net Increase (Decrease) in Net Assets from Operations ....................... $(33,255) $(74,665) $1,392 ======== ======== ====== Sunbelt Value Equity Income Fund Stock Fund --------- ---------- 06/01/98- 06/01/98- 11/30/98 11/30/98 --------- ---------- Income: Interest Income ............................................................. $ 266 $ 3,298 Dividend Income ............................................................. 918 24,320 Less: Foreign Taxes Withheld ................................................ -- -- --------- --------- Total Investment Income ..................................................... 1,184 27,618 --------- --------- Expenses: Investment Advisory Fees .................................................... 2,220 7,800 Less: Investment Advisory Fees Waived ....................................... (230) -- Administrator Fees .......................................................... 151 764 Transfer Agent Fees -- Trust Shares ......................................... 6 10 Transfer Agent Fees -- Investor Shares ...................................... 1 25 Transfer Agent Fees -- Flex Shares .......................................... 11 89 Transfer Agent Out of Pocket Fees ........................................... 30 93 Printing Expenses ........................................................... 38 126 Custody Fees ................................................................ 8 32 Professional Fees ........................................................... 18 62 Trustee Fees ................................................................ 6 19 Registration Fees ........................................................... -- 23 Distribution Fees -- Investor Shares ........................................ 55 323 Less: Distribution Fees Waived -- Investor Shares ........................... (4) -- Distribution Fees -- Flex Shares ............................................ 37 858 Less: Distribution Fees Waived -- Flex Shares ............................... (9) (4) Insurance and Other Fees .................................................... 11 38 Amortization of Deferred Organization Costs ................................. -- -- --------- --------- Total Expenses .............................................................. 2,349 10,258 --------- --------- Net Investment Income (Loss) ................................................ (1,165) 17,360 --------- --------- Net Realized and Unrealized Gain (Loss) on Investments: Net Realized Gain (Loss) on Securities Sold ................................. (11,591) 92,567 Net Realized 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 ......... (92,389) (103,094) --------- --------- Total Net Realized and Unrealized Gain (Loss) on Investments ............................................................ (103,980) (10,527) --------- --------- Net Increase (Decrease) in Net Assets from Operations ....................... $(105,145) $ 6,833 ========= =========
The accompanying notes are an integral part of the financial statements. 65 STATEMENT OF OPERATIONS (000) (concluded) - -------------------------------------------------------------------------------- STI CLASSIC FUNDS For The Period Ended November 30, 1998
Florida Georgia Tax-Exempt Tax-Exempt Bond Fund Bond Fund ---------- ---------- 06/01/98- 06/01/98- 11/30/98 11/30/98 --------- --------- Interest Income ...................................................... $2,615 $1,887 ------ ------ Expenses: Investment Advisory Fees .......................................... 368 269 Less: Investment Advisory Fees Waived ............................. (54) (44) Less: Contribution from Advisor ................................... -- -- Administrator Fees ................................................ 44 32 Transfer Agent Fees -- Trust Shares ............................... 6 8 Transfer Agent Fees -- Investor Shares ............................ 7 6 Transfer Agent Fees -- Flex Shares ................................ 6 6 Transfer Agent Out of Pocket Fees ................................. 4 2 Printing Expenses ................................................. 3 2 Custody Fees ...................................................... 1 1 Professional Fees ................................................. 2 1 Trustee Fees ...................................................... 1 -- Registration Fees ................................................. 1 1 Distribution Fees -- Investor Shares .............................. 3 3 Less: Distribution Fees Waived -- Investor Shares ................. (3) (3) Distribution Fees -- Flex Shares .................................. 50 44 Less: Distribution Fees Waived -- Flex Shares ..................... (20) (17) Insurance and Other Fees .......................................... 1 1 Amortization of Deferred Organization Costs ....................... -- -- ------ ------ Total Expenses .................................................... 420 312 ------ ------ Net Investment Income ................................................ 2,195 1,575 ------ ------ Net Realized and Unrealized Gain (Loss) on Investments: Net Realized Gain (Loss) on Securities Sold ....................... 765 59 Net Change in Unrealized Appreciation on Investments .................................................. 1,115 1,142 ------ ------ Total Net Realized and Unrealized Gain on Investments .................................................. 1,880 1,201 ------ ------ Net Increase in Net Assets from Operations ........................... $4,075 $2,776 ====== ======
Amounts designated as "--" are either $0 or round to $0. The accompanying notes are an integral part of the financial statements. 66 - -------------------------------------------------------------------------------- Unaudited
Investment Investment Grade Limited-Term Grade Bond Tax-Exempt Federal Mortgage Fund Bond Fund Securities Fund ---------- ---------------- ---------------- 06/01/98- 06/01/98- 06/01/98- 11/30/98 11/30/98 11/30/98 ---------- ---------------- ---------------- Interest Income ...................................................... $25,459 $4,245 $4,295 ------- ------ ------ Expenses: Investment Advisory Fees .......................................... 3,138 687 468 Less: Investment Advisory Fees Waived ............................. (365) (101) (73) Less: Contribution from Advisor ................................... -- -- -- Administrator Fees ................................................ 333 73 56 Transfer Agent Fees -- Trust Shares ............................... 22 7 9 Transfer Agent Fees -- Investor Shares ............................ 11 4 7 Transfer Agent Fees -- Flex Shares ................................ 12 9 5 Transfer Agent Out of Pocket Fees ................................. 41 8 3 Printing Expenses ................................................. 51 16 5 Custody Fees ...................................................... 11 4 2 Professional Fees ................................................. 25 6 3 Trustee Fees ...................................................... 8 3 1 Registration Fees ................................................. 4 1 3 Distribution Fees -- Investor Shares .............................. 72 59 3 Less: Distribution Fees Waived -- Investor Shares ................. (24) (4) (3) Distribution Fees -- Flex Shares .................................. 77 45 8 Less: Distribution Fees Waived -- Flex Shares ..................... (20) (14) (8) Insurance and Other Fees .......................................... -- 5 -- Amortization of Deferred Organization Costs ....................... -- -- 1 ------- ------ ------ Total Expenses .................................................... 3,396 808 490 ------- ------ ------ Net Investment Income ................................................ 22,063 3,437 3,805 ------- ------ ------ Net Realized and Unrealized Gain (Loss) on Investments: Net Realized Gain (Loss) on Securities Sold ....................... 17,097 2,647 1,519 Net Change in Unrealized Appreciation on Investments .................................................. 5,256 1,096 268 ------- ------ ------ Total Net Realized and Unrealized Gain on Investments .................................................. 22,353 3,743 1,787 ------- ------ ------ Net Increase in Net Assets from Operations ........................... $44,416 $7,180 $5,592 ======= ====== ====== Short-Term U.S. Treasury U.S. Short-Term Securities Government Bond Fund Fund Securities Fund ---------- ----------- --------------- 06/01/98- 06/01/98- 06/01/98- 11/30/98 11/30/98 11/30/98 ---------- ----------- ---------------- Interest Income ...................................................... $3,869 $1,458 $1,440 ------ ------ ------- Expenses: Investment Advisory Fees .......................................... 427 169 167 Less: Investment Advisory Fees Waived ............................. (73) (31) (22) Less: Contribution from Advisor ................................... -- -- -- Administrator Fees ................................................ 52 20 18 Transfer Agent Fees -- Trust Shares ............................... 8 8 8 Transfer Agent Fees -- Investor Shares ............................ 5 6 6 Transfer Agent Fees -- Flex Shares ................................ 5 5 5 Transfer Agent Out of Pocket Fees ................................. 3 1 -- Printing Expenses ................................................. 9 1 1 Custody Fees ...................................................... 2 -- -- Professional Fees ................................................. 4 1 -- Trustee Fees ...................................................... 1 -- -- Registration Fees ................................................. 1 -- -- Distribution Fees -- Investor Shares .............................. 2 3 6 Less: Distribution Fees Waived -- Investor Shares ................. (2) (3) (5) Distribution Fees -- Flex Shares .................................. 9 8 21 Less: Distribution Fees Waived -- Flex Shares ..................... (9) (8) (6) Insurance and Other Fees .......................................... 3 -- -- Amortization of Deferred Organization Costs ....................... -- -- 1 ------ ------ ------- Total Expenses .................................................... 447 180 200 ------ ------ ------- Net Investment Income ................................................ 3,422 1,278 1,240 ------ ------ ------- Net Realized and Unrealized Gain (Loss) on Investments: Net Realized Gain (Loss) on Securities Sold ....................... 201 100 (2) Net Change in Unrealized Appreciation on Investments .................................................. 1,390 421 711 ------ ------ ------- Total Net Realized and Unrealized Gain on Investments .................................................. 1,591 521 709 ------ ------ ------- Net Increase in Net Assets from Operations ........................... $5,013 $1,799 $1,949 ====== ====== ======
The accompanying notes are an integral part of the financial statements. 67 STATEMENT OF CHANGES IN NET ASSETS (000) - -------------------------------------------------------------------------------- STI CLASSIC FUNDS For The Period Ended November 30, 1998 (unaudited) and the Year Ended May 31, 1998
Balanced Fund Capital Growth Fund ------------------------ -------------------------- 06/01/98- 06/01/97- 06/01/98- 06/01/97- 11/30/98 05/31/98 11/30/98 05/31/98 -------- -------- -------- -------- Operations: Net Investment Income (Loss) ............................. $ 2,423 $ 4,558 $ 3,650 $ 7,983 Net Realized Gain (Loss) on Investments .................. 4,002 17,885 54,281 261,636 Net Realized 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 ......................................... 5,744 14,594 64,689 157,396 -------- -------- ---------- ---------- Increase (Decrease) in Net Assets from Operations ...... 12,169 37,037 122,620 427,015 -------- -------- ---------- ---------- Distributions to Shareholders: Net Investment Income: Trust Shares ........................................... (2,098) (4,197) (4,629) -- Investor Shares ........................................ (87) (154) (33) (28) Flex Shares ............................................ (216) (204) -- -- Capital Gains: Trust Shares ........................................... -- (12,908) -- (200,074) Investor Shares ........................................ -- (536) -- -- Flex Shares ............................................ -- (972) -- (9,643) -------- -------- ---------- ---------- Total Distributions ...................................... (2,401) (18,971) (4,662) (253,759) -------- -------- ---------- ---------- Capital Transactions (1): Trust Shares: Proceeds from Shares Issued ............................ 38,636 53,532 225,794 466,511 Reinvestment of Cash Distributions ..................... 2,080 16,935 3,479 197,282 Cost of Shares Repurchased ............................. (37,187) (49,610) (252,852) (358,832) -------- -------- ---------- ---------- Increase (Decrease) in Net Assets From Trust Share Transactions ........................................... 3,529 20,857 (23,579) 304,961 -------- -------- ---------- ---------- Investor Shares: Proceeds from Shares Issued ............................ 3,352 2,150 14,539 29,116 Reinvestment of Cash Distributions ..................... 86 680 33 35,990 Cost of Shares Repurchased ............................. (948) (1,166) (21,869) (37,738) -------- -------- ---------- ---------- Increase (Decrease) in Net Assets From Investor Share Transactions ..................................... 2,490 1,664 (7,297) 27,368 -------- -------- ---------- ---------- Flex Shares: Proceeds from Shares Issued ............................ 15,372 21,409 26,350 67,377 Reinvestment of Cash Distributions ..................... 211 1,164 -- 9,528 Cost of Shares Repurchased ............................. (4,629) (2,194) (13,623) (12,730) -------- -------- ---------- ---------- Increase (Decrease) in Net Assets From Flex Share Transactions ................................ 10,954 20,379 12,727 64,175 -------- -------- ---------- ---------- Increase (Decrease) in Net Assets From Share Transactions ......................................... 16,973 42,900 (18,149) 396,504 -------- -------- ---------- ---------- Total Increase (Decrease) in Net Assets .............. 26,741 60,966 99,809 569,760 -------- -------- ---------- ---------- Net Assets: Beginning of Period ...................................... 224,403 163,437 1,910,301 1,340,541 -------- -------- ---------- ---------- End of Period ............................................ $251,144 $224,403 $2,010,110 $1,910,301 ======== ======== ========== ========== (1)Shares Issued and Redeemed: Trust Shares: Shares Issued .......................................... 2,976 4,245 13,735 29,548 Shares Issued in Lieu of Cash Distributions ............ 160 1,402 217 13,725 Shares Redeemed ........................................ (2,905) (3,922) (15,670) (22,177) -------- -------- ---------- ---------- Net Trust Share Transactions ............................. 231 1,725 (1,718) 21,096 -------- -------- ---------- ---------- Investor Shares: Shares Issued .......................................... 253 167 890 1,812 Shares Issued in Lieu of Cash Distributions ............ 7 56 2 2,518 Shares Redeemed ........................................ (74) (92) (1,360) -- -------- -------- ---------- ---------- Net Investor Share Transactions .......................... 186 131 (468) 1,981 -------- -------- ---------- ---------- Flex Shares: Shares Issued .......................................... 1,179 1,688 1,624 4,242 Shares Issued in Lieu of Cash Distributions ............ 17 97 -- 674 Shares Redeemed ........................................ (361) (173) (866) (795) -------- -------- ---------- ---------- Net Flex Share Transactions .............................. 835 1,612 758 4,121 ======== ======== ========== ========== Net Change in Capital Shares ............................. 1,252 3,468 (1,428) 27,198 -------- -------- ---------- ---------- International Emerging Equity Markets Equity Fund Fund ----------------------- --------------------- 06/01/98- 06/01/97- 06/01/98- 06/01/97- 11/30/98 05/31/98 11/30/98 05/31/98 -------- -------- -------- -------- Operations: Net Investment Income (Loss) ............................. $ 288 $ 468 $ 1,805 $ 3,320 Net Realized Gain (Loss) on Investments .................. (3,234) (875) (2,403) 61,173 Net Realized Loss on Foreign Currency Transactions ........................................... (16) (61) (316) (1,410) Net Change in Unrealized Appreciation (Depreciation) on Foreign Currency and Translation of Other Assets and Liabilities in Foreign Currency ........................ (50) (1) (28) (93) Net Change in Unrealized Appreciation (Depreciation) on Investments ......................................... (2,919) (7,440) (72,911) 50,891 ------- -------- --------- -------- Increase (Decrease) in Net Assets from Operations ...... (5,931) (7,909) (73,853) 113,881 ------- -------- --------- -------- Distributions to Shareholders: Net Investment Income: Trust Shares ........................................... -- (314) -- (1,649) Investor Shares ........................................ -- -- -- (5) Flex Shares ............................................ -- -- -- -- Capital Gains: Trust Shares ........................................... -- (544) -- (49,334) Investor Shares ........................................ -- -- -- (1,347) Flex Shares ............................................ -- -- -- (1,526) ------- -------- --------- -------- Total Distributions ...................................... -- (858) -- (53,861) ------- -------- --------- -------- Capital Transactions (1): Trust Shares: Proceeds from Shares Issued ............................ 6,622 23,819 73,806 292,707 Reinvestment of Cash Distributions ..................... -- 805 -- 47,572 Cost of Shares Repurchased ............................. (7,629) (20,798) (77,154) (258,050) ------- -------- --------- -------- Increase (Decrease) in Net Assets From Trust Share Transactions ........................................... (1,007) 3,826 (3,348) 82,229 ------- -------- --------- -------- Investor Shares: Proceeds from Shares Issued ............................ -- -- 1,913 7,487 Reinvestment of Cash Distributions ..................... -- -- -- 1,351 Cost of Shares Repurchased ............................. -- -- (1,863) (3,549) ------- -------- --------- -------- Increase (Decrease) in Net Assets From Investor Share Transactions ..................................... -- -- 50 5,289 ------- -------- --------- -------- Flex Shares: Proceeds from Shares Issued ............................ -- -- 3,784 14,405 Reinvestment of Cash Distributions ..................... -- -- -- 1,507 Cost of Shares Repurchased ............................. -- -- (3,057) (4,407) ------- -------- --------- -------- Increase (Decrease) in Net Assets From Flex Share Transactions ................................ -- -- 727 11,505 ------- -------- --------- -------- Increase (Decrease) in Net Assets From Share Transactions ......................................... (1,007) 3,826 (2,571) 99,023 ------- -------- --------- -------- Total Increase (Decrease) in Net Assets .............. (6,938) (4,941) (76,424) 159,043 ------- -------- --------- -------- Net Assets: Beginning of Period ...................................... 34,554 39,495 667,417 508,374 ------- -------- --------- -------- End of Period ............................................ $27,616 $ 34,554 $ 590,993 $667,417 ======= ======== ========= ======== (1)Shares Issued and Redeemed: Trust Shares: Shares Issued .......................................... 911 2,344 5,380 20,687 Shares Issued in Lieu of Cash Distributions ............ -- 92 -- 3,744 Shares Redeemed ........................................ (1,036) (2,199) (5,807) (18,402) ------- -------- --------- -------- Net Trust Share Transactions ............................. (125) 237 (427) 6,029 ------- -------- --------- -------- Investor Shares: Shares Issued .......................................... -- -- 140 526 Shares Issued in Lieu of Cash Distributions ............ -- -- -- 107 Shares Redeemed ........................................ -- -- (143) (254) ------- -------- --------- -------- Net Investor Share Transactions .......................... -- -- (3) 379 ------- -------- --------- -------- Flex Shares: Shares Issued .......................................... -- -- 270 1,021 Shares Issued in Lieu of Cash Distributions ............ -- -- -- 121 Shares Redeemed ........................................ -- -- (241) (322) ------- -------- --------- -------- Net Flex Share Transactions .............................. -- -- 29 820 ======= ======== ========= ======== Net Change in Capital Shares ............................. (125) 237 (401) 7,228 ------- -------- --------- --------
*Commencement of operations Amounts designated as "--" are either $0 or round to $0. The accompanying notes are an integral part of the financial statements. 68 - --------------------------------------------------------------------------------
International Equity Mid-Cap Equity Index Fund Fund --------------------- ------------------- 06/01/98- 06/01/97- 06/01/98- 06/01/97- 11/30/98 05/31/98 11/30/98 05/31/98 -------- -------- -------- -------- Operations: Net Investment Income (Loss) ............................. Net Realized Gain (Loss) on Investments .................. $ 162 $ 498 $ (882) $ (1,352) Net Realized Loss on Foreign Currency 7,424 3,349 (18,675) 54,941 Transactions ........................................... Net Change in Unrealized Appreciation (Depreciation) on (29) (46) -- -- Foreign Currency and Translation of Other Assets and Liabilities in Foreign Currency ........................ Net Change in Unrealized Appreciation (Depreciation) 15 19 -- -- on Investments ......................................... (6,436) 9,866 (13,698) 14,034 Increase (Decrease) in Net Assets from Operations ...... -------- -------- -------- -------- 1,136 13,686 (33,255) 67,623 Distributions to Shareholders: -------- -------- -------- -------- Net Investment Income: Trust Shares ........................................... Investor Shares ........................................ -- (489) -- -- Flex Shares ............................................ -- (34) -- -- Capital Gains: -- -- -- -- Trust Shares ........................................... Investor Shares ........................................ -- (2,914) -- (44,446) Flex Shares ............................................ -- (343) -- (3,025) -- (54) -- (1,899) Total Distributions ...................................... -------- -------- -------- -------- -- (3,834) -- (49,370) Capital Transactions (1): -------- -------- -------- -------- Trust Shares: Proceeds from Shares Issued ............................ Reinvestment of Cash Distributions ..................... 5,805 8,458 102,145 146,386 Cost of Shares Repurchased ............................. -- 3,057 -- 41,347 (10,145) (17,470) (66,589) (61,475) Increase (Decrease) in Net Assets From Trust Share -------- -------- -------- -------- Transactions ........................................... (4,340) (5,955) (9,208) 33,761 Investor Shares: -------- -------- -------- -------- Proceeds from Shares Issued ............................ Reinvestment of Cash Distributions ..................... 575 2,516 1,939 6,110 Cost of Shares Repurchased ............................. -- 375 -- 3,019 (2,175) (2,400) (3,504) (5,606) Increase (Decrease) in Net Assets From Investor -------- -------- -------- -------- Share Transactions ..................................... (1,600) 491 (1,565) 3,523 Flex Shares: -------- -------- -------- -------- Proceeds from Shares Issued ............................ Reinvestment of Cash Distributions ..................... 289 788 2,919 10,574 Cost of Shares Repurchased ............................. -- 53 -- 1,885 (681) (427) (2,566) (3,934) Increase (Decrease) in Net Assets From -------- -------- -------- -------- Flex Share Transactions ................................ (392) 414 353 8,525 Increase (Decrease) in Net Assets From Share -------- -------- -------- -------- Transactions ......................................... (6,332) (5,050) (10,420) 45,809 Total Increase (Decrease) in Net Assets .............. -------- -------- -------- -------- (5,196) 4,802 (43,675) 64,062 Net Assets: -------- -------- -------- -------- Beginning of Period ...................................... 64,810 60,008 381,797 317,735 End of Period ............................................ -------- -------- -------- -------- $ 59,614 $ 64,810 $338,122 $381,797 ======== ======== ======== ======== (1)Shares Issued and Redeemed: Trust Shares: Shares Issued .......................................... Shares Issued in Lieu of Cash Distributions ............ 449 700 8,331 10,517 Shares Redeemed ........................................ -- 277 -- 3,378 (803) (1,473) (8,995) (6,253) Net Trust Share Transactions ............................. -------- -------- -------- -------- (354) (496) (664) 2,746 Investor Shares: -------- -------- -------- -------- Shares Issued .......................................... Shares Issued in Lieu of Cash Distributions ............ 45 210 157 445 Shares Redeemed ........................................ -- 34 -- 248 (170) (201) (289) (407) Net Investor Share Transactions .......................... -------- -------- -------- -------- (125) 43 (132) 286 Flex Shares: -------- -------- -------- -------- Shares Issued .......................................... Shares Issued in Lieu of Cash Distributions ............ 22 63 237 777 Shares Redeemed ........................................ -- 5 -- 158 (56) (36) (221) (292) Net Flex Share Transactions .............................. -------- -------- -------- -------- (34) 32 16 643 Net Change in Capital Shares ............................. ======== ======== ======== ======== (513) (421) (780) 3,675 -------- -------- -------- -------- Small Cap Small Cap Equity Fund Growth Stock Fund ---------------------- ------------------- 06/01/98- 06/01/97- 10/08/98*- 11/30/98 05/31/98 11/30/98 -------- -------- ---------- Operations: Net Investment Income (Loss) ............................. $ 2,022 $ 3,127 $ 1 Net Realized Gain (Loss) on Investments .................. (15,216) 32,653 31 Net Realized 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 ......................................... (61,471) 16,045 1,360 --------- --------- --------- Increase (Decrease) in Net Assets from Operations ...... (74,665) 51,825 1,392 --------- --------- --------- Distributions to Shareholders: Net Investment Income: Trust Shares ........................................... (2,704) -- -- Investor Shares ........................................ -- -- -- Flex Shares ............................................ (4) (70) -- Capital Gains: Trust Shares ........................................... -- (14,480) -- Investor Shares ........................................ -- -- -- Flex Shares ............................................ -- (897) -- --------- --------- --------- Total Distributions ...................................... (1,815) (18,151) -- --------- --------- --------- Capital Transactions (1): Trust Shares: Proceeds from Shares Issued ............................ 64,890 272,776 12,177 Reinvestment of Cash Distributions ..................... 1,160 15,603 -- Cost of Shares Repurchased ............................. (162,636) (238,878) (277,311) --------- --------- --------- Increase (Decrease) in Net Assets From Trust Share Transactions ........................................... (539) 226,904 12,131 --------- --------- --------- Investor Shares: Proceeds from Shares Issued ............................ -- -- -- Reinvestment of Cash Distributions ..................... -- -- -- Cost of Shares Repurchased ............................. -- -- -- --------- --------- --------- Increase (Decrease) in Net Assets From Investor Share Transactions ..................................... -- -- -- --------- --------- --------- Flex Shares: Proceeds from Shares Issued ............................ 1,854 42,359 762 Reinvestment of Cash Distributions ..................... 4 958 -- Cost of Shares Repurchased ............................. (6,076) (3,490) -- --------- --------- --------- Increase (Decrease) in Net Assets From Flex Share Transactions ................................ (4,218) 39,827 762 --------- --------- --------- Increase (Decrease) in Net Assets From Share Transactions ......................................... (4,757) 266,731 12,893 --------- --------- --------- Total Increase (Decrease) in Net Assets .............. (81,237) 300,405 14,285 --------- --------- --------- Net Assets: Beginning of Period ...................................... 431,454 131,049 -- --------- --------- --------- End of Period ............................................ $ 350,217 $ 431,454 $ 14,285 ========= ========= ========= (1)Shares Issued and Redeemed: Trust Shares: Shares Issued .......................................... 6,171 22,065 1,020 Shares Issued in Lieu of Cash Distributions ............ 108 1,294 -- Shares Redeemed ........................................ (6,253) (4,840) (4) --------- --------- --------- Net Trust Share Transactions ............................. 26 18,519 1,016 --------- --------- --------- Investor Shares: Shares Issued .......................................... -- -- -- Shares Issued in Lieu of Cash Distributions ............ -- -- -- Shares Redeemed ........................................ -- -- -- --------- --------- --------- Net Investor Share Transactions .......................... -- -- -- --------- --------- --------- Flex Shares: Shares Issued .......................................... 167 3,366 62 Shares Issued in Lieu of Cash Distributions ............ -- 80 -- Shares Redeemed ........................................ (581) (273) -- --------- --------- --------- Net Flex Share Transactions .............................. (414) 3,173 62 ========= ========= ========= Net Change in Capital Shares ............................. (388) 21,692 1,078 --------- --------- --------- Value Income Sunbelt Equity Fund Stock Fund -------------------- ----------------------- 06/01/98- 06/01/97- 06/01/98- 06/01/97- 11/30/98 05/31/98 11/30/98 05/31/98 --------- --------- --------- --------- Operations: Net Investment Income (Loss) ............................. $ (1,165) $ (4,364) $ 17,360 $ 34,555 Net Realized Gain (Loss) on Investments .................. (11,591) 49,778 92,567 319,982 Net Realized 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 ......................................... (92,389) 46,313 (103,094) 44,518 --------- --------- ---------- ---------- Increase (Decrease) in Net Assets from Operations ...... (105,145) 91,727 6,833 399,055 --------- --------- ---------- ---------- Distributions to Shareholders: Net Investment Income: Trust Shares ........................................... -- (15,567) (30,991) Investor Shares ........................................ -- -- (1,618) (2,838) Flex Shares ............................................ -- -- (791) (1,104) Capital Gains: Trust Shares ........................................... -- (32,274) -- (262,191) Investor Shares ........................................ -- (2,333) -- (29,671) Flex Shares ............................................ -- (516) -- (19,217) --------- --------- ---------- ---------- Total Distributions ...................................... -- (35,123) (17,976) (346,012) --------- --------- ---------- ---------- Capital Transactions (1): Trust Shares: Proceeds from Shares Issued ............................ 137,061 207,154 163,673 381,039 Reinvestment of Cash Distributions ..................... -- 30,202 11,194 269,446 Cost of Shares Repurchased ............................. (162,636) (238,878) (277,311) (459,701) --------- --------- ---------- ---------- Increase (Decrease) in Net Assets From Trust Share Transactions ........................................... (25,575) (1,522) (102,444) 190,784 --------- --------- ---------- ---------- Investor Shares: Proceeds from Shares Issued ............................ 2,040 5,150 10,098 35,483 Reinvestment of Cash Distributions ..................... -- 2,323 1,598 32,233 Cost of Shares Repurchased ............................. (3,845) (8,619) (22,242) (28,503) --------- --------- ---------- ---------- Increase (Decrease) in Net Assets From Investor Share Transactions ..................................... (1,805) (1,146) (10,546) 39,213 --------- --------- ---------- ---------- Flex Shares: Proceeds from Shares Issued ............................ 1,645 3,848 20,083 106,762 Reinvestment of Cash Distributions ..................... -- 515 776 20,054 Cost of Shares Repurchased ............................. (1,143) (2,603) (26,828) (20,844) --------- --------- ---------- ---------- Increase (Decrease) in Net Assets From Flex Share Transactions ................................ 502 1,760 (5,969) 105,972 --------- --------- ---------- ---------- Increase (Decrease) in Net Assets From Share Transactions ......................................... (26,878) (908) (118,959) 335,969 --------- --------- ---------- ---------- Total Increase (Decrease) in Net Assets .............. (132,023) 55,696 (130,102) 389,012 --------- --------- ---------- ---------- Net Assets: Beginning of Period ...................................... 470,851 415,155 2,116,539 1,727,527 --------- --------- ---------- ---------- End of Period ............................................ $ 338,828 $ 470,851 $1,986,437 $2,116,539 ========= ========== =========== =========== (1)Shares Issued and Redeemed: Trust Shares: Shares Issued .......................................... 10,718 13,707 12,489 26,871 Shares Issued in Lieu of Cash Distributions ............ -- 2,213 863 21,156 Shares Redeemed ........................................ (12,707) (16,065) (21,374) (32,467) --------- ---------- ----------- ----------- Net Trust Share Transactions ............................. (1,989) (145) (8,022) 15,560 --------- ---------- ----------- ----------- Investor Shares: Shares Issued .......................................... 157 353 761 2,518 Shares Issued in Lieu of Cash Distributions ............ -- 174 123 2,538 Shares Redeemed ........................................ (317) (590) (1,718) (2,003) --------- ---------- ----------- ----------- Net Investor Share Transactions .......................... (160) (63) (834) 3,053 --------- ---------- ----------- ----------- Flex Shares: Shares Issued .......................................... 125 260 1,523 7,617 Shares Issued in Lieu of Cash Distributions ............ -- 39 60 1,597 Shares Redeemed ........................................ (97) (184) (2,096) (1,488) --------- ---------- ----------- ----------- Net Flex Share Transactions .............................. 28 115 (513) 7,726 ========= ========== =========== =========== Net Change in Capital Shares ............................. (2,121) (93) (9,369) 26,339 --------- ---------- ----------- -----------
The accompanying notes are an integral part of the financial statements. 69 STATEMENT OF CHANGES IN NET ASSETS (000) (concluded) - -------------------------------------------------------------------------------- STI CLASSIC FUNDS For The Period Ended November 30, 1998 (unaudited) and the Year Ended May 31, 1998
Florida Georgia Tax-Exempt Tax-Exempt Investment Grade Bond Fund Bond Fund Bond Fund ---------------------- -------------------- --------------------- 06/01/98- 06/01/97- 06/01/98- 06/01/97- 06/01/98- 06/01/97- 11/30/98 05/31/98 11/30/98 05/31/98 11/30/98 05/31/98 --------- --------- -------- --------- --------- --------- Operations: Net Investment Income .............................. $ 2,195 $ 3,410 $ 1,575 $ 2,430 $ 22,063 $ 43,082 Net Realized Gain (Loss) on Investments ............ 765 720 59 195 17,097 10,888 Net Change in Unrealized Appreciation on Investments ................................... 1,115 2,334 1,142 1,962 5,256 24,005 -------- -------- ------- -------- --------- --------- Increase in Net Assets from Operations ........... 4,075 6,464 2,776 4,587 44,416 77,975 -------- -------- ------- -------- --------- --------- Distributions to Shareholders: Net Investment Income: Trust Shares ..................................... (1,963) (3,070) (1,369) (2,075) (20,913) (40,937) Investor Shares .................................. (65) (128) (66) (147) (816) (1,729) Flex Shares ...................................... (162) (211) (141) (207) (334) (416) Capital Gains: Trust Shares ..................................... -- (42) -- (61) -- -- Investor Shares .................................. -- (2) -- (4) -- -- Flex Shares ...................................... -- (3) -- (7) -- -- -------- -------- ------- -------- --------- --------- Total Distributions ................................ (2,190) (3,456) (1,576) (2,501) (22,063) (43,082) -------- -------- ------- -------- --------- --------- Capital Transactions (1): Trust Shares: Proceeds from Shares Issued ...................... 18,551 59,209 15,892 34,479 159,474 258,775 Reinvestment of Cash Distributions ............... 357 420 527 924 15,138 30,522 Cost of Shares Repurchased ....................... (8,382) (18,838) (5,565) (14,516) (180,506) (162,448) -------- -------- ------- -------- --------- --------- Increase (Decrease) in Net Assets From Trust Share Transactions ..................................... 10,526 40,791 10,854 20,887 (5,894) 126,849 -------- -------- ------- -------- --------- --------- Investor Shares: Proceeds from Shares Issued ...................... 643 870 193 1,508 3,015 5,860 Reinvestment of Cash Distributions ............... 51 101 60 131 776 1,609 Cost of Shares Repurchased ....................... (344) (955) (887) (1,314) (4,651) (8,920) -------- -------- ------- -------- --------- --------- Increase (Decrease) in Net Assets From Investor Share Transactions ............................... 350 16 (634) 325 (860) (1,451) -------- -------- ------- -------- --------- --------- Flex Shares: Proceeds from Shares Issued ...................... 3,025 6,969 1,189 4,983 5,764 9,584 Reinvestment of Cash Distributions ............... 142 172 130 186 297 351 Cost of Shares Repurchased ....................... (751) (2,189) (385) (1,770) (1,723) (2,932) -------- -------- ------- -------- --------- --------- Increase (Decrease) in Net Assets From Flex Share Transactions .......................... 2,416 4,952 934 3,399 4,338 7,003 -------- -------- ------- -------- --------- --------- Increase (Decrease) in Net Assets From Share Transactions ................................... 13,292 45,759 11,154 24,611 (2,416) 132,401 -------- -------- ------- -------- --------- --------- Total Increase (Decrease) in Net Assets ........ 15,177 48,767 12,354 26,697 19,937 167,294 -------- -------- ------- -------- --------- --------- Net Assets: Beginning of Period ................................ 105,480 56,713 74,602 47,905 839,868 672,574 -------- -------- ------- -------- --------- --------- End of Period ...................................... $120,657 $105,480 $86,956 $ 74,602 $ 859,805 $ 839,868 ======== ======== ======= ======== ========= ========= (1)Shares Issued and Redeemed: Trust Shares: Shares Issued .................................... 1,713 5,591 1,563 3,445 14,727 24,713 Shares Issued in Lieu of Cash Distributions ...... 33 40 52 92 1,398 2,915 Shares Redeemed .................................. (775) (1,777) (545) (1,456) (16,709) (15,497) -------- -------- ------- -------- --------- --------- Net Trust Share Transactions ....................... 971 3,854 1,070 2,081 (584) 12,131 -------- -------- ------- -------- --------- --------- Investor Shares: Shares Issued .................................... 59 82 19 149 277 557 Shares Issued in Lieu of Cash Distributions ...... 5 10 6 13 72 154 Shares Redeemed .................................. (32) (90) (87) (131) (429) (852) -------- -------- ------- -------- --------- --------- Net Investor Share Transactions .................... 32 2 (62) 31 (80) (141) -------- -------- ------- -------- --------- --------- Flex Shares: Shares Issued .................................... 280 658 117 495 531 908 Shares Issued in Lieu of Cash Distributions ...... 13 16 13 19 27 33 Shares Redeemed .................................. (69) (205) (38) (176) (159) (278) -------- -------- ------- -------- --------- --------- Net Flex Share Transactions ........................ 224 469 92 338 399 663 ======== ======== ======= ======== ========= ========= Net Change in Capital Shares ....................... 1,227 4,325 1,100 2,450 (265) 12,653 -------- -------- ------- -------- --------- ---------
Amounts designated as "--" are either $0 or round to $0. The accompanying notes are an integral part of the financial statements. 70 - --------------------------------------------------------------------------------
Investment Grade Tax- Limited-Term Federal Short-Term Exempt Bond Fund Mortgage Securities Fund Bond Fund --------------------- ------------------------ --------------------- 06/01/98- 06/01/97- 06/01/98- 06/01/97- 06/01/98- 06/01/97- 11/30/98 05/31/98 11/30/98 05/31/98 11/30/98 05/31/98 --------- --------- --------- --------- --------- --------- Operations: Net Investment Income .............................. $ 3,437 $ 6,699 $ 3,805 $ 7,936 $ 3,422 $ 6,036 Net Realized Gain (Loss) on Investments ............ 2,647 6,478 1,519 502 201 502 Net Change in Unrealized Appreciation on Investments ................................... 1,096 1,225 268 1,031 1,390 1,163 -------- -------- -------- -------- -------- -------- Increase in Net Assets from Operations ........... 7,180 14,402 5,592 9,469 5,013 7,701 -------- -------- -------- -------- -------- -------- Distributions to Shareholders: Net Investment Income: Trust Shares ..................................... (2,838) (5,523) (3,705) (7,721) (3,333) (5,864) Investor Shares .................................. (469) (1,002) (65) (135) (48) (106) Flex Shares ...................................... (131) (173) (38) (78) (43) (67) Capital Gains: Trust Shares ..................................... -- (3,989) -- (194) -- (100) Investor Shares .................................. -- (799) -- (3) -- (2) Flex Shares ...................................... -- (152) -- (2) -- (1) -------- -------- -------- -------- -------- -------- Total Distributions ................................ (3,438) (11,638) (3,808) (8,133) (3,424) (6,140) -------- -------- -------- -------- -------- -------- Capital Transactions (1): Trust Shares: Proceeds from Shares Issued ...................... 19,734 39,596 23,942 43,610 24,277 59,682 Reinvestment of Cash Distributions ............... 707 4,599 2,368 5,346 1,650 3,238 Cost of Shares Repurchased ....................... (16,406) (38,924) (24,176) (36,666) (16,042) (33,705) -------- -------- -------- -------- -------- -------- Increase (Decrease) in Net Assets From Trust Share Transactions ..................................... 4,035 5,271 2,134 12,290 9,885 29,215 -------- -------- -------- -------- -------- -------- Investor Shares: Proceeds from Shares Issued ...................... 802 2,484 298 1,128 202 190 Reinvestment of Cash Distributions ............... 410 1,614 65 131 47 103 Cost of Shares Repurchased ....................... (3,181) (8,284) (751) (1,006) (387) (560) -------- -------- -------- -------- -------- -------- Increase (Decrease) in Net Assets From Investor Share Transactions ............................... (1,969) (4,186) (388) 253 (138) (267) -------- -------- -------- -------- -------- -------- Flex Shares: Proceeds from Shares Issued ...................... 1,463 6,179 231 691 578 1,392 Reinvestment of Cash Distributions ............... 117 296 36 75 42 65 Cost of Shares Repurchased ....................... (745) (2,842) (182) (647) (818) (441) -------- -------- -------- -------- -------- -------- Increase (Decrease) in Net Assets From Flex Share Transactions .......................... 835 3,633 85 119 (198) 1,016 -------- -------- -------- -------- -------- -------- Increase (Decrease) in Net Assets From Share Transactions ................................... 2,901 4,718 1,831 12,662 9,549 29,964 -------- -------- -------- -------- -------- -------- Total Increase (Decrease) in Net Assets ........ 6,643 7,482 3,615 13,998 11,138 31,525 -------- -------- -------- -------- -------- -------- Net Assets: Beginning of Period ................................ 183,164 175,682 141,736 127,738 124,481 92,956 -------- -------- -------- -------- -------- -------- End of Period ...................................... $189,807 $183,164 $145,351 $141,736 $135,619 $124,481 ======== ======== ======== ======== ======== ======== (1)Shares Issued and Redeemed: Trust Shares: Shares Issued .................................... 1,733 3,486 2,352 4,313 2,393 5,955 Shares Issued in Lieu of Cash Distributions ...... 61 407 232 529 163 323 Shares Redeemed .................................. (1,410) (3,425) (2,373) (3,626) (1,583) (3,364) -------- -------- -------- -------- -------- -------- Net Trust Share Transactions ....................... 384 468 211 1,216 973 2,914 -------- -------- -------- -------- -------- -------- Investor Shares: Shares Issued .................................... 70 218 29 112 20 19 Shares Issued in Lieu of Cash Distributions ...... 35 142 6 13 4 10 Shares Redeemed .................................. (276) (727) (74) (100) (38) (56) -------- -------- -------- -------- -------- -------- Net Investor Share Transactions .................... (171) (367) (39) 25 (14) (27) -------- -------- -------- -------- -------- -------- Flex Shares: Shares Issued .................................... 127 544 23 68 57 139 Shares Issued in Lieu of Cash Distributions ...... 10 26 4 7 4 6 Shares Redeemed .................................. (65) (250) (18) (64) (81) (44) -------- -------- -------- -------- -------- -------- Net Flex Share Transactions ........................ 72 320 9 11 (20) 101 ======== ======== ======== ======== ======== ======== Net Change in Capital Shares ....................... 285 421 181 1,252 939 2,988 -------- -------- -------- -------- -------- -------- Short-Term U.S. Treasury U.S. Government Securities Fund Securities Fund ------------------------ -------------------- 06/01/98- 06/01/97- 06/01/98- 06/01/97- 11/30/98 05/31/98 11/30/98 05/31/98 --------- --------- --------- --------- Operations: Net Investment Income .............................. $ 1,278 $ 1,816 $ 1,240 $ 1,894 Net Realized Gain (Loss) on Investments ............ 100 47 (2) 55 Net Change in Unrealized Appreciation on Investments ................................... 421 211 711 1,207 ------- ------- ------- ----------- Increase in Net Assets from Operations ........... 1,799 2,074 1,9493,156 ------- ------- ------- ----------- Distributions to Shareholders: Net Investment Income: Trust Shares ..................................... (1,172) (1,575) (1,055) (1,585) Investor Shares .................................. (69) (178) (82) (141) Flex Shares ...................................... (37) (63) (103) (168) Capital Gains: Trust Shares ..................................... -- -- -- -- Investor Shares .................................. -- -- -- -- Flex Shares ...................................... -- -- -- -- ------- ------- ------- ----------- Total Distributions ................................ (1,278) (1,816) (1,240) (1,894) ------- ------- ------- ----------- Capital Transactions (1): Trust Shares: Proceeds from Shares Issued ...................... 5,173 33,653 9,160 20,160 Reinvestment of Cash Distributions ............... 486 661 254 380 Cost of Shares Repurchased ....................... (5,941) (9,594) (3,739) (6,142) ------- ------- ------- ----------- Increase (Decrease) in Net Assets From Trust Share Transactions ..................................... (282) 24,720 5,675 14,398 ------- ------- ------- ----------- Investor Shares: Proceeds from Shares Issued ...................... 400 479 447 1,625 Reinvestment of Cash Distributions ............... 70 180 82 134 Cost of Shares Repurchased ....................... (747) (1,338) (750) (880) ------- ------- ------- ----------- Increase (Decrease) in Net Assets From Investor Share Transactions ............................... (277) (679) (221) 879 ------- ------- ------- ----------- Flex Shares: Proceeds from Shares Issued ...................... 989 1,012 925 2,695 Reinvestment of Cash Distributions ............... 32 56 91 145 Cost of Shares Repurchased ....................... (155) (757) (511) (1,748) ------- ------- ------- ----------- Increase (Decrease) in Net Assets From Flex Share Transactions .......................... 866 311 505 1,092 ------- ------- ------- ----------- Increase (Decrease) in Net Assets From Share Transactions ................................... 307 24,352 5,959 16,369 ------- ------- ------- ----------- Total Increase (Decrease) in Net Assets ........ 828 24,610 6,668 17,631 ------- ------- ------- ----------- Net Assets: Beginning of Period ................................ 51,610 27,000 42,146 24,515 ------- ------- ------- ----------- End of Period ...................................... $52,438 $51,610 $48,814 $ 42,146 ======= ======= ======= =========== (1)Shares Issued and Redeemed: Trust Shares: Shares Issued .................................... 516 3,381 866 1,949 Shares Issued in Lieu of Cash Distributions ...... 49 66 24 37 Shares Redeemed .................................. (592) (965) (355) (592) ------- ------- ------- --------- Net Trust Share Transactions ....................... (27) 2,482 535 1,394 ------- ------- ------- --------- Investor Shares: Shares Issued .................................... 40 48 42 157 Shares Issued in Lieu of Cash Distributions ...... 7 18 8 13 Shares Redeemed .................................. (76) (134) (71) (85) ------- ------- ------- --------- Net Investor Share Transactions .................... (29) (68) (21) 85 ------- ------- ------- --------- Flex Shares: Shares Issued .................................... 98 102 88 260 Shares Issued in Lieu of Cash Distributions ...... 3 6 8 14 Shares Redeemed .................................. (15) (76) (48) (169) ------- ------- ------- --------- Net Flex Share Transactions ........................ 86 32 48 105 ======= ======= ======= ========= Net Change in Capital Shares ....................... 30 2,446 562 1,584 ------- ------- ------- ---------
The accompanying notes are an integral part of the financial statements. 71 FINANCIAL HIGHLIGHTS - -------------------------------------------------------------------------------- STI CLASSIC FUNDS For the Period Ended November 30, 1998 (unaudited) and the Years Ended May 31. For a Share Outstanding Throughout the Periods
Net Realized and Net Unrealized Gains Net Asset Value Investment (Losses) Distributions from Distributions from Beginning of Period Income (Loss) on Investments Net Investment Income Realized Capital Gains ------------------- ------------- --------------- --------------------- ---------------------- Balanced Fund Trust Shares 1998*** $13.09 $ 0.15 $ 0.56 $(0.15) $ -- 1998 11.94 0.31 2.19 (0.32) (1.03) 1997 11.55 0.33 1.47 (0.32) (1.09) 1996 10.26 0.33 1.41 (0.34) (0.11) 1995 9.76 0.33 0.49 (0.32) -- 1994(1) 10.00 0.11 (0.29) (0.06) -- Investor Shares 1998*** $13.14 $ 0.13 $ 0.57 $(0.13) $ -- 1998 11.99 0.28 2.19 (0.29) (1.03) 1997 11.60 0.29 1.48 (0.29) (1.09) 1996 10.30 0.30 1.41 (0.30) (0.11) 1995 9.79 0.28 0.51 (0.28) -- 1994(2) 10.00 0.03 (0.24) -- -- Flex Shares 1998*** $13.02 $ 0.08 $ 0.56 $(0.08) $ -- 1998 11.90 0.20 2.16 (0.21) (1.03) 1997 11.53 0.22 1.45 (0.21) (1.09) 1996(3) 10.36 0.24 1.29 (0.25) (0.11) Capital Growth Fund Trust Shares 1998*** $16.48 $ 0.04 $ 1.09 $(0.05) $ -- 1998 15.09 0.09 3.96 (0.09) (2.57) 1997 14.90 0.12 3.13 (0.12) (2.94) 1996 12.18 0.12 3.32 (0.13) (0.59) 1995 11.99 0.16 0.57 (0.14) (0.40) 1994 11.95 0.16 0.31 (0.17) (0.26) Investor Shares 1998*** $16.43 $ -- $ 1.08 $ -- $ -- 1998 15.06 (0.01) 3.95 -- (2.57) 1997 14.89 0.03 3.10 (0.02) (2.94) 1996 12.17 0.03 3.32 (0.04) (0.59) 1995 11.98 0.09 0.57 (0.07) (0.40) 1994 11.93 0.09 0.31 (0.09) (0.26) Flex Shares 1998*** $16.22 $(0.04) $ 1.06 $ -- $ -- 1998 14.96 (0.04) 3.87 -- (2.57) 1997 14.84 (0.01) 3.07 -- (2.94) 1996(4) 12.20 0.02 3.26 (0.05) (0.59) Emerging Markets Equity Fund Trust Shares 1998*** $ 8.87 $ 0.08 $(1.63) $ -- $ -- 1998 10.79 0.16 (1.86) (0.08) (0.14) 1997(5) 10.00 0.04 0.75 -- --
* Annualized. ** Return is for the period indicated and has not been annualized. *** For the semi-annual period ended November 30, 1998. Return is for the period indicated and has not been annualized. (1) Commenced operations on January 3, 1994. (2) Commenced operations on January 4, 1994. 72 - --------------------------------------------------------------------------------
Ratio of Net Asset Net Assets Ratio of Net Investment Value End Total End of Expenses to Income (Loss) to of Period Return (A) Period (000) Average Net Assets Average Net Assets ---------- ---------- ------------ ------------------ ------------------ Balanced Fund Trust Shares 1998*** $13.65 5.48% $ 199,777 0.97% 2.25% 1998 13.09 22.15% 188,465 0.96% 2.51% 1997 11.94 16.66% 151,358 0.95% 2.89% 1996 11.55 17.26% 111,638 0.95% 3.00% 1995 10.26 8.72% 89,051 0.95% 3.44% 1994(1) 9.76 (1.78%)** 90,579 0.95%* 2.76%* Investor Shares 1998*** $13.71 5.38% $ 11,228 1.27% 1.95% 1998 13.14 21.72% 8,313 1.26% 2.21% 1997 11.99 16.27% 6,012 1.25% 2.58% 1996 11.60 16.88% 4,896 1.25% 2.70% 1995 10.30 8.29% 3,765 1.25% 3.17% 1994(2) 9.79 (2.10%)** 2,311 1.25%* 2.46%* Flex Shares 1998*** $13.58 4.99% $ 40,139 2.03% 1.20% 1998 13.02 20.85% 27,625 2.02% 1.41% 1997 11.90 15.40% 6,067 2.01% 1.84% 1996(3) 11.53 15.58%* 3,131 2.00%* 1.85%* Capital Growth Fund Trust Shares 1998*** $17.56 6.89% $1,603,031 1.17% 0.53% 1998 16.48 29.51% 1,532,587 1.16% 0.61% 1997 15.09 24.66% 1,085,128 1.15% 0.83% 1996 14.90 28.97% 981,498 1.15% 0.90% 1995 12.18 6.63% 984,205 1.15% 1.38% 1994 11.99 3.87% 891,870 1.15% 1.25% Investor Shares 1998*** $17.51 6.59% $ 280,649 1.82% (0.04%) 1998 16.43 28.71% 271,044 1.81% (0.03%) 1997 15.06 23.74% 218,660 1.80% 0.19% 1996 14.89 28.18% 191,078 1.80% 0.24% 1995 12.17 5.93% 160,875 1.80% 0.73% 1994 11.98 3.26% 170,795 1.80% 0.64% Flex Shares 1998*** $17.24 6.29% $ 126,430 2.29% (0.57%) 1998 16.22 28.12% 106,670 2.26% (0.46%) 1997 14.96 23.24% 36,753 2.27% (0.29%) 1996(4) 14.84 27.48%* 10,969 2.27%* (0.29%)* Emerging Markets Equity Fund Trust Shares 1998*** $ 7.32 (17.47%) $ 27,616 1.57% 2.03% 1998 8.87 (15.74%) 34,554 1.56% 1.14% 1997(5) 10.79 7.90%** 39,495 1.55%* 1.37%* Ratio of Ratio of Net Investment Expenses to Income (Loss) to Average Net Assets Average Net Assets Portfolio (Excluding Waivers (Excluding Waivers Turnover and Reimbursements) and Reimbursements) Rate ------------------- ------------------- --------- Balanced Fund Trust Shares 1998*** 1.06% 2.16% 93% 1998 1.08% 2.39% 154% 1997 1.08% 2.76% 197% 1996 1.09% 2.86% 155% 1995 1.11% 3.28% 157% 1994(1) 1.25%* 2.46%* 106% Investor Shares 1998*** 1.45% 1.77% 93% 1998 1.59% 1.88% 154% 1997 1.64% 2.19% 197% 1996 1.89% 2.06% 155% 1995 1.80% 2.62% 157% 1994(2) 4.91%* (1.20%)* 106% Flex Shares 1998*** 2.16% 1.07% 93% 1998 2.23% 1.20% 154% 1997 2.45% 1.40% 197% 1996(3) 2.97%* 0.88%* 155% Capital Growth Fund Trust Shares 1998*** 1.26% 0.44% 78% 1998 1.27% 0.50% 194% 1997 1.25% 0.73% 141% 1996 1.27% 0.78% 156% 1995 1.28% 1.25% 128% 1994 1.29% 1.11% 124% Investor Shares 1998*** 1.93% (0.15%) 78% 1998 2.01% (0.23%) 194% 1997 2.02% (0.03%) 141% 1996 2.08% (0.04%) 156% 1995 2.10% 0.43% 128% 1994 2.11% 0.33% 124% Flex Shares 1998*** 2.37% (0.65%) 78% 1998 2.37% (0.57%) 194% 1997 2.43% (0.45%) 141% 1996(4) 2.68%* (0.70%)* 156% Emerging Markets Equity Fund Trust Shares 1998*** 1.63% 1.97% 31% 1998 1.78% 0.92% 74% 1997(5) 2.04%* 0.88%* 24%
(3) Commenced operations on June 14, 1995. (4) Commenced operations on June 1, 1995. (5) Commenced operations on January 31, 1997. (A) Total return figures do not reflect applicable sales loads. The accompanying notes are an integral part of the financial statements. 73 FINANCIAL HIGHLIGHTS (continued) - -------------------------------------------------------------------------------- STI CLASSIC FUNDS For the Period Ended November 30, 1998 (unaudited) and the Years Ended May 31. For a Share Outstanding Throughout the Periods
Net Realized and Net Unrealized Gains Net Asset Value Investment (Losses) Beginning of Period Income (Loss) on Investments ------------------- ------------- ---------------- International Equity Fund Trust Shares 1998*** $15.00 $ 0.05 $ (1.65) 1998 13.63 0.04 2.69 1997 11.40 0.03 2.57 1996(1) 10.00 0.05 1.35 Investor Shares 1998*** $14.92 $ 0.02 $ (1.64) 1998 13.58 0.02 2.64 1997 11.38 (0.01) 2.56 1996(2) 10.44 0.04 0.90 Flex Shares 1998*** $14.68 $(0.03) $ (1.61) 1998 13.47 0.07 2.46 1997 11.37 (0.04) 2.49 1996(2) 10.44 0.02 0.91 International Equity Index Fund Trust Shares 1998*** $13.31 $ 0.04 $ 0.34 1998 11.34 0.11 2.65 1997 10.96 0.10 0.69 1996 10.24 0.10 0.84 1995(3) 10.00 0.08 0.19 Investor Shares 1998*** $13.20 $(0.01) $ 0.35 1998 11.26 0.16 2.53 1997 10.88 0.03 0.72 1996 10.20 0.05 0.85 1995(3) 10.00 0.05 0.17 Flex Shares 1998*** $13.17 $(0.08) $ 0.38 1998 11.24 0.17 2.44 1997 10.87 (0.05) 0.72 1996(4) 10.24 -- 0.82 Mid-Cap Equity Fund (B) Trust Shares 1998*** $13.79 $(0.03) $(1.19) 1998 13.21 -- 2.54 1997 12.76 0.03 1.69 1996 11.00 0.08 2.63 1995 9.85 0.08 1.15 1994(5) 10.00 0.02 (0.16) Investor Shares 1998*** $13.67 $(0.06) $(1.17) 1998 13.17 (0.03) 2.49 1997 12.74 (0.03) 1.69 1996 10.99 0.03 2.62 1995 9.84 0.03 1.15 1994(6) 10.00 0.01 (0.17) Flex Shares 1998*** $13.42 $(0.09) $(1.16) 1998 13.04 (0.04) 2.38 1997 12.69 (0.07) 1.64 1996(7) 11.13 -- 2.45 Distributions from Distributions from Net Investment Income Realized Capital Gains --------------------- ---------------------- International Equity Fund Trust Shares 1998*** $ -- $ -- 1998 (0.04) (1.32) 1997 (0.02) (0.35) 1996(1) -- -- Investor Shares 1998*** $ -- $ -- 1998 -- (1.32) 1997 -- (0.35) 1996(2) -- -- Flex Shares 1998*** $ -- $ -- 1998 -- (1.32) 1997 -- (0.35) 1996(2) -- -- International Equity Index Fund Trust Shares 1998*** $ -- $ -- 1998 (0.11) (0.68) 1997 (0.11) (0.30) 1996 (0.13) (0.09) 1995(3) (0.02) (0.01) Investor Shares 1998*** $ -- $ -- 1998 (0.07) (0.68) 1997 (0.07) (0.30) 1996 (0.13) (0.09) 1995(3) (0.01) (0.01) Flex Shares 1998*** $ -- $ -- 1998 -- (0.68) 1997 -- (0.30) 1996(4) (0.10) (0.09) Mid-Cap Equity Fund (B) Trust Shares 1998*** $ -- $ -- 1998 -- (1.96) 1997 (0.05) (1.22) 1996 (0.08) (0.87) 1995 (0.08) -- 1994(5) (0.01) -- Investor Shares 1998*** $ -- $ -- 1998 -- (1.96) 1997 (0.01) (1.22) 1996 (0.03) (0.87) 1995 (0.03) -- 1994(6) -- -- Flex Shares 1998*** $ -- $ -- 1998 -- (1.96) 1997 -- (1.22) 1996(7) (0.02) (0.87)
* Annualized. ** Return is for the period indicated and has not been annualized. *** For the semi-annual period ended November 30, 1998. Return is for the period indicated and has not been annualized. (1) Commenced operations on December 1, 1995. (2) Commenced operations on January 2, 1996. (3) Commenced operations on June 6, 1994. 74 - --------------------------------------------------------------------------------
Net Asset Net Assets Ratio of Value End Total End of Expenses to of Period Return (A) Period (000) Average Net Assets ---------- ---------- ------------ ------------------ International Equity Fund Trust Shares 1998*** $13.40 (10.67%) $556,337 1.48% 1998 15.00 21.87% 628,870 1.47% 1997 13.63 23.29% 489,325 1.46% 1996(1) 11.40 14.00%** 213,306 1.46%* Investor Shares 1998*** $13.30 (10.86%) $ 15,454 1.83% 1998 14.92 21.39% 17,383 1.82% 1997 13.58 22.85% 10,674 1.81% 1996(2) 11.38 9.00%** 3,448 1.81%* Flex Shares 1998*** $13.04 (11.17%) $ 19,202 2.53% 1998 14.68 20.54% 21,164 2.52% 1997 13.47 21.98% 8,375 2.51% 1996(2) 11.37 8.91%** 953 2.51%* International Equity Index Fund Trust Shares 1998*** $13.69 2.85% $ 52,983 1.07% 1998 13.31 25.82% 56,200 1.06% 1997 11.34 7.48% 53,516 1.05% 1996 10.96 9.29% 90,980 1.05% 1995(3) 10.24 2.69%** 89,446 1.05%* Investor Shares 1998*** $13.54 2.58% $ 5,587 1.47% 1998 13.20 25.25% 7,141 1.46% 1997 11.26 7.12% 5,592 1.45% 1996 10.88 8.90% 5,597 1.45% 1995(3) 10.20 2.18%** 3,960 1.45%* Flex Shares 1998*** $13.47 2.28% $ 1,044 2.12% 1998 13.17 24.50% 1,469 2.11% 1997 11.24 6.41% 900 2.10% 1996(4) 10.87 8.32%** 917 2.10%* Mid-Cap Equity Fund (B) Trust Shares 1998*** $12.57 (8.85)% $ 299,630 1.17% 1998 13.79 21.14% 337,825 1.16% 1997 13.21 14.23% 287,370 1.15% 1996 12.76 25.54% 253,905 1.15% 1995 11.00 12.56% 125,562 1.15% 1994(5) 9.85 (1.39%)** 57,036 1.15%* Investor Shares 1998*** $12.44 (9.00)% $ 21,026 1.62% 1998 13.67 20.56% 24,930 1.61% 1997 13.17 13.76% 20,245 1.60% 1996 12.74 24.93% 17,971 1.60% 1995 10.99 11.96% 7,345 1.60% 1994(6) 9.84 (1.60%)** 3,004 1.60%* Flex Shares 1998*** $12.17 (9.31)% $ 17,466 2.22% 1998 13.42 19.80% 19,042 2.21% 1997 13.04 13.06% 10,120 2.20% 1996(7) 12.69 23.00%* 5,029 2.20%* Ratio of Ratio of Net Investment Ratio of Expenses to Income (Loss) to Net Investment Average Net Assets Average Net Assets Portfolio Income (Loss) to (Excluding Waivers (Excluding Waivers Turnover Average Net Assets and Reimbursements) and Reimbursements) Rate ------------------ ------------------- ------------------- --------- International Equity Fund Trust Shares 1998*** 0.64% 1.52% 0.60% 65% 1998 0.61% 1.48% 0.60% 108% 1997 0.51% 1.51% 0.46% 139% 1996(1) 1.36%* 1.65%* 1.17%* 113% Investor Shares 1998*** 0.23% 1.86% 0.20% 65% 1998 0.24% 1.91% 0.15% 108% 1997 0.18% 2.05% (0.06%) 139% 1996(2) 1.73%* 3.14%* 0.40%* 113% Flex Shares 1998*** (0.51%) 2.53% (0.51%) 65% 1998 (0.46%) 2.58% (0.52%) 108% 1997 (0.27%) 3.03% (0.79%) 139% 1996(2) 1.08%* 5.86%* (2.27%)* 113% International Equity Index Fund Trust Shares 1998*** 0.59% 1.17% 0.49% 23% 1998 0.88% 1.18% 0.76% 1% 1997 0.71% 1.15% 0.61% 2% 1996 0.84% 1.19% 0.70% 30% 1995(3) 1.13%* 1.31%* 0.87%* 10% Investor Shares 1998*** 0.23% 1.68% 0.02% 23% 1998 0.50% 1.84% 0.12% 1% 1997 0.28% 1.88% (0.15%) 2% 1996 0.48% 2.06% (0.13%) 30% 1995(3) 0.67%* 2.44%* (0.32%)* 10% Flex Shares 1998*** (0.34)% 2.92% (1.14%) 23% 1998 (0.03%) 3.52% (1.44%) 1% 1997 (0.39%) 3.69% (1.98%) 2% 1996(4) (0.24%)* 4.14%* (2.28%)* 30% Mid-Cap Equity Fund (B) Trust Shares 1998*** (0.44%) 1.28% (0.55%) 34% 1998 (0.29%) 1.27% (0.40%) 129% 1997 0.23% 1.26% 0.12% 152% 1996 0.70% 1.29% 0.56% 116% 1995 0.88% 1.32% 0.71% 66% 1994(5) 1.20%* 1.68%* 0.67%* 8% Investor Shares 1998*** (0.86%) 1.76% (1.00%) 34% 1998 (0.75%) 1.84% (0.98%) 129% 1997 (0.21%) 1.85% (0.46%) 152% 1996 0.25% 1.96% (0.11%) 116% 1995 0.43% 2.27% (0.24%) 66% 1994(6) 0.74%* 4.60%* (2.26%)* 8% Flex Shares 1998*** (1.49%) 2.47% (1.74%) 34% 1998 (1.37%) 2.47% (1.63%) 129% 1997 (0.85%) 2.58% (1.23%) 152% 1996(7) (0.37%)* 3.04%* (1.21%)* 116%
(4) Commenced operations on June 8, 1995. (5) Commenced operations on February 2, 1994. (6) Commenced operations on February 1, 1994. (7) Commenced operations on June 5, 1995. (A) Total return figures do not reflect applicable sales loads. (B) During the fiscal year ended May 31, 1996, the Aggressive Growth Fund changed its name to the Mid-Cap Equity Fund. The accompanying notes are an integral part of the financial statements. 75 FINANCIAL HIGHLIGHTS (continued) - -------------------------------------------------------------------------------- STI CLASSIC FUNDS For the Period Ended November 30, 1998 (unaudited) and the Years Ended May 31. For a Share Outstanding Throughout the Periods
Net Realized and Net Unrealized Gains Net Asset Value Investment (Losses) Distributions from Distributions from Beginning of Period Income (Loss) on Investments Net Investment Income Realized Capital Gains ------------------- ------------- --------------- --------------------- ---------------------- Small Cap Equity Fund Trust Shares 1998*** $12.88 $ 0.07 $(2.31) $(0.06) $-- 1998 11.07 0.14 2.41 (0.12) (0.62) 1997(1) 10.00 0.05 1.04 (0.02) -- Flex Shares 1998*** $12.80 $-- $(2.28) $-- $-- 1998(2) 11.28 0.03 2.17 (0.06) (0.62) Small Cap Growth Stock Fund Trust Shares 1998(3)*** $10.00 $-- $ 3.26 $-- $-- Flex Shares 1998(3)*** $10.00 $-- $ 3.24 $-- $-- Sunbelt Equity Fund Trust Shares 1998*** $15.12 $(0.05) $(3.39) $-- $-- 1998 13.28 0.01 3.03 -- (1.20) 1997 14.11 (0.09) 0.25 -- (0.99) 1996 10.03 (0.04) 4.32 -- (0.20) 1995 9.70 (0.01) 0.38 -- (0.04) 1994(4) 10.00 -- (0.30) -- -- Investor Shares 1998*** $14.77 $(0.10) $(3.29) $-- $-- 1998 13.06 (0.07) 2.98 -- (1.20) 1997 13.95 (0.14) 0.24 -- (0.99) 1996 9.96 (0.11) 4.30 -- (0.20) 1995 9.69 (0.05) 0.36 -- (0.04) 1994(5) 10.00 (0.02) (0.29) -- -- Flex Shares 1998*** $14.60 $(0.08) $(3.31) $-- $-- 1998 13.00 (0.09) 2.89 -- (1.20) 1997 13.97 (0.14) 0.16 -- (0.99) 1996(6) 10.20 (0.07) 4.04 -- (0.20) Value Income Stock Fund Trust Shares 1998*** $13.90 $ 0.13 $-- $(0.13) $-- 1998 13.71 0.26 2.62 (0.27) (2.42) 1997 13.15 0.30 2.32 (0.30) (1.76) 1996 11.59 0.35 2.71 (0.34) (1.16) 1995 10.54 0.32 1.56 (0.32) (0.51) 1994 10.23 0.29 0.70 (0.32) (0.36) Investor Shares 1998*** $13.87 $ 0.10 $ 0.01 $(0.11) $-- 1998 13.68 0.20 2.62 (0.21) (2.42) 1997 13.13 0.25 2.32 (0.26) (1.76) 1996 11.58 0.30 2.71 (0.30) (1.16) 1995 10.52 0.28 1.56 (0.27) (0.51) 1994 10.23 0.26 0.67 (0.27) (0.37) Flex Shares 1998*** $13.75 $ 0.05 $ 0.01 $(0.06) $-- 1998 13.61 0.12 2.57 (0.13) (2.42) 1997 13.08 0.18 2.29 (0.18) (1.76) 1996(7) 11.59 0.26 2.65 (0.26) (1.16)
* Annualized. ** Return is for the period indicated and has not been annualized. *** For the semi-annual period ended November 30, 1998. Return is for the period indicated and has not been annualized. (1) Commenced operations on January 31, 1997. (2) Commenced operations on June 5, 1997. (3) Commenced operations on October 8, 1998. 76 - --------------------------------------------------------------------------------
Net Asset Net Assets Ratio of Value End Total End of Expenses to of Period Return (A) Period (000) Average Net Assets ---------- ---------- ------------ ------------------ Small Cap Equity Fund Trust Shares 1998*** $10.58 (17.39)% $ 321,181 1.22% 1998 12.88 23.59% 390,841 1.21% 1997(1) 11.07 10.97%** 131,049 1.20%* Flex Shares 1998*** $10.52 (17.80)% $ 29,036 2.27% 1998(2) 12.80 22.29%** 40,613 2.06%* Small Cap Growth Stock Fund Trust Shares 1998(3)*** $13.26 9.86% $ 13,474 1.20% Flex Shares 1998(3)*** $13.24 9.78% $ 811 2.25% Sunbelt Equity Fund Trust Shares 1998*** $11.68 22.75% $ 310,355 1.17% 1998 15.12 23.86% 431,921 1.16% 1997 13.28 1.48% 381,371 1.15% 1996 14.11 43.19% 412,430 1.15% 1995 10.03 3.81% 258,908 1.15% 1994(4) 9.70 (2.99%)** 128,280 1.15%* Investor Shares 1998*** $11.38 18.19% $ 21,962 1.62% 1998 14.77 23.25% 30,860 1.61% 1997 13.06 1.05% 28,095 1.60% 1996 13.95 42.58% 29,002 1.60% 1995 9.96 3.20% 22,180 1.60% 1994(5) 9.69 (3.10%)** 16,077 1.60%* Flex Shares 1998*** $11.21 18.65% $ 6,511 2.22% 1998 14.60 22.48% 8,070 2.21% 1997 13.00 0.46% 5,689 2.20% 1996(6) 13.97 39.86%* 2,705 2.20%* Value Income Stock Fund Trust Shares 1998*** $13.90 1.00% $1,613,933 0.92% 1998 13.90 23.10% 1,725,418 0.92% 1997 13.71 22.18% 1,488,062 0.91% 1996 13.15 27.91% 1,244,399 0.92% 1995 11.59 19.06% 991,977 0.95% 1994 10.54 9.95% 573,082 0.88% Investor Shares 1998*** $13.87 0.84% $ 199,035 1.27% 1998 13.87 22.71% 210,591 1.27% 1997 13.68 21.69% 165,999 1.30% 1996 13.13 27.39% 130,597 1.30% 1995 11.58 18.71% 92,256 1.30% 1994 10.52 9.27% 60,589 1.25% Flex Shares 1998*** $13.75 0.47% $ 173,469 2.02% 1998 13.75 21.76% 180,530 2.01% 1997 13.61 20.91% 73,466 2.00% 1996(7) 13.08 26.52%* 26,298 2.00%* Ratio of Ratio of Net Investment Ratio of Expenses to Income (Loss) to Net Investment Average Net Assets Average Net Assets Portfolio Income (Loss) to (Excluding Waivers (Excluding Waivers Turnover Average Net Assets and Reimbursements) and Reimbursements) Rate ------------------ ------------------- ------------------- --------- Small Cap Equity Fund Trust Shares 1998*** 1.24% 1.29% 1.18% 26% 1998 1.07% 1.31% 0.97% 55% 1997(1) 1.86%* 1.37%* 1.69%* 27% Flex Shares 1998*** 0.19% 2.54% (0.08%) 26% 1998(2) 0.01%* 2.35%* (0.28%)* 55% Small Cap Growth Stock Fund Trust Shares 1998(3)*** 0.19% 2.45% (1.06%) 11% Flex Shares 1998(3)*** (1.00%) 7.57% (6.33%) 11% Sunbelt Equity Fund Trust Shares 1998*** (0.56%) 1.29% (0.68%) 47% 1998 (0.90%) 1.27% (1.01%) 70% 1997 (0.65%) 1.26% (0.76%) 72% 1996 (0.34%) 1.28% (0.47%) 106% 1995 (0.12%) 1.30% (0.27%) 80% 1994(4) (0.19%)* 1.58%* (0.62%)* 21% Investor Shares 1998*** (0.97%) 1.79% (1.14%) 47% 1998 (1.35%) 1.86% (1.60%) 70% 1997 (1.10%) 1.84% (1.34%) 72% 1996 (0.79%) 1.93% (1.12%) 106% 1995 (0.57%) 1.98% (0.95%) 80% 1994(5) (0.63%)* 2.04%* (1.07%)* 21% Flex Shares 1998*** (1.61%) 2.60% (1.99%) 47% 1998 (1.96%) 2.58% (2.33%) 70% 1997 (1.72%) 2.69% (2.21%) 72% 1996(6) (1.43%)* 3.62%* (2.85%)* 106% Value Income Stock Fund Trust Shares 1998*** 1.91% 0.92% 1.91% 32% 1998 1.85% 0.92% 1.85% 99% 1997 2.40% 0.91% 2.40% 105% 1996 2.86% 0.92% 2.86% 134% 1995 3.16% 0.95% 3.16% 126% 1994 3.21% 0.97% 3.12% 149% Investor Shares 1998*** 1.56% 1.27% 1.56% 32% 1998 1.47% 1.27% 1.47% 99% 1997 2.01% 1.31% 2.00% 105% 1996 2.47% 1.37% 2.40% 134% 1995 2.80% 1.41% 2.69% 126% 1994 2.80% 1.44% 2.61% 149% Flex Shares 1998*** 0.82% 2.02% 0.82% 32% 1998 0.78% 2.01% 0.78% 99% 1997 1.33% 2.03% 1.30% 105% 1996(7) 1.72%* 2.15%* 1.57%* 134%
(4) Commenced operations on January 3, 1994. (5) Commenced operations on January 4, 1994. (6) Commenced operations on June 5, 1995. (7) Commenced operations on June 1, 1995. (A) Total return figures do not reflect applicable sales loads. The accompanying notes are an integral part of the financial statements. 77 FINANCIAL HIGHLIGHTS (continued) - -------------------------------------------------------------------------------- STI CLASSIC FUNDS For the Period Ended November 30, 1998 (unaudited) and the Years Ended May 31. For a Share Outstanding Throughout the Periods
Net Realized and Net Unrealized Gains Net Asset Value Investment (Losses) Beginning of Period Income (Loss) on Investments ------------------- ------------- --------------- Florida Tax-Exempt Bond Fund Trust Shares 1998*** $10.72 $ 0.21 $ 0.18 1998 10.28 0.44 0.45 1997 10.06 0.46 0.25 1996 10.18 0.46 (0.07) 1995 9.75 0.44 0.43 1994(1) 10.00 0.13 (0.25) Investor Shares 1998*** $10.72 $ 0.20 $ 0.19 1998 10.29 0.42 0.44 1997 10.07 0.44 0.25 1996 10.18 0.44 (0.06) 1995 9.75 0.42 0.43 1994(2) 10.00 0.13 (0.25) Flex Shares 1998*** $10.74 $ 0.18 $ 0.18 1998 10.30 0.37 0.45 1997 10.08 0.39 0.25 1996(3) 10.19 0.39 (0.06) Georgia Tax-Exempt Bond Fund Trust Shares 1998*** $10.11 $ 0.20 $ 0.15 1998 9.73 0.41 0.39 1997 9.56 0.42 0.22 1996 9.63 0.43 (0.05) 1995 9.42 0.42 0.21 1994(2) 10.00 0.14 (0.58) Investor Shares 1998*** $10.13 $ 0.19 $ 0.15 1998 9.74 0.39 0.40 1997 9.58 0.40 0.21 1996 9.65 0.41 (0.05) 1995 9.44 0.40 0.21 1994(4) 10.00 0.13 (0.56) Flex Shares 1998*** $10.12 $ 0.16 $ 0.14 1998 9.73 0.34 0.40 1997 9.56 0.35 0.22 1996(5) 9.72 0.36 (0.14) Distributions from Distributions from Net Investment Income Realized Capital Gains --------------------- ---------------------- Florida Tax-Exempt Bond Fund Trust Shares 1998*** $(0.21) $-- 1998 (0.44) (0.01) 1997 (0.46) (0.03) 1996 (0.46) (0.05) 1995 (0.44) -- 1994(1) (0.13) -- Investor Shares 1998*** $(0.20) $-- 1998 (0.42) (0.01) 1997 (0.44) (0.03) 1996 (0.44) (0.05) 1995 (0.42) -- 1994(2) (0.13) -- Flex Shares 1998*** $(0.18) $-- 1998 (0.37) (0.01) 1997 (0.39) (0.03) 1996(3) (0.39) (0.05) Georgia Tax-Exempt Bond Fund Trust Shares 1998*** $(0.20) $-- 1998 (0.41) (0.01) 1997 (0.42) (0.05) 1996 (0.43) (0.02) 1995 (0.42) -- 1994(2) (0.14) -- Investor Shares 1998*** $(0.19) $-- 1998 (0.39) (0.01) 1997 (0.40) (0.05) 1996 (0.41) (0.02) 1995 (0.40) -- 1994(4) (0.13) -- Flex Shares 1998*** $(0.16) $-- 1998 (0.34) (0.01) 1997 (0.35) (0.05) 1996(5) (0.36) (0.02)
* Annualized. ** Return is for the period indicated and has not been annualized. *** For the semi-annual period ended November 30, 1998. Return is for the period indicated and has not been annualized. (1) Commenced operations on January 25, 1994. (2) Commenced operations on January 18, 1994. 78 - --------------------------------------------------------------------------------
Net Asset Net Assets Ratio of Value End Total End of Expenses to of Period Return (A) Period (000) Average Net Assets ---------- ---------- ------------ ------------------ Florida Tax-Exempt Bond Fund Trust Shares 1998*** $10.90 3.70% $ 106,117 0.67% 1998 10.72 8.77% 93,939 0.66% 1997 10.28 7.22% 50,487 0.65% 1996 10.06 3.87% 30,790 0.65% 1995 10.18 9.26% 10,118 0.65% 1994(1) 9.75 (1.19%)** 3,192 0.65%* Investor Shares 1998*** $10.91 3.69% $ 3,789 0.87% 1998 10.72 8.46% 3,381 0.86% 1997 10.29 7.00% 3,226 0.85% 1996 10.07 3.76% 4,025 0.85% 1995 10.18 9.04% 3,320 0.85% 1994(2) 9.75 (1.22%)** 2,280 0.85%* Flex Shares 1998*** $10.92 3.34% $ 10,751 1.37% 1998 10.74 8.04% 8,160 1.36% 1997 10.30 6.48% 3,000 1.35% 1996(3) 10.08 3.27%* 2,692 1.35%* Georgia Tax-Exempt Bond Fund Trust Shares 1998*** $10.26 3.48% $ 74,243 0.67% 1998 10.11 8.37% 62,363 0.66% 1997 9.73 6.79% 39,732 0.65% 1996 9.56 3.89% 22,950 0.65% 1995 9.63 6.94% 13,187 0.65% 1994(2) 9.42 (4.43%)** 4,338 0.65%* Investor Shares 1998*** $10.28 3.36% $ 3,390 0.87% 1998 10.13 8.26% 3,975 0.86% 1997 9.74 6.47% 3,511 0.85% 1996 9.58 3.69% 3,418 0.85% 1995 9.65 6.70% 3,268 0.85% 1994(4) 9.44 (4.29%)** 3,300 0.85%* Flex Shares 1998*** $10.26 3.02% $ 9,323 1.37% 1998 10.12 7.74% 8,264 1.36% 1997 9.73 6.06% 4,662 1.35% 1996(5) 9.56 2.25%* 4,207 1.35%* Ratio of Ratio of Net Investment Ratio of Expenses to Income (Loss) to Net Investment Average Net Assets Average Net Assets Portfolio Income (Loss) to (Excluding Waivers (Excluding Waivers Turnover Average Net Assets and Reimbursements) and Reimbursements) Rate ------------------ ------------------- ------------------- --------- Florida Tax-Exempt Bond Fund Trust Shares 1998*** 3.94% 0.76% 3.85% 41% 1998 4.16% 0.80% 4.02% 69% 1997 4.48% 0.80% 4.33% 135% 1996 4.49% 0.88% 4.26% 63% 1995 4.63% 1.13% 4.15% 105% 1994(1) 3.86%* 1.12%* 3.39%* 53% Investor Shares 1998*** 3.75% 1.33% 3.28% 41% 1998 3.98% 1.34% 3.50% 69% 1997 4.28% 1.31% 3.82% 135% 1996 4.28% 1.36% 3.77% 63% 1995 4.36% 1.50% 3.71% 105% 1994(2) 3.67%* 3.20%* 1.32%* 53% Flex Shares 1998*** 3.25% 1.91% 2.71% 41% 1998 3.45% 2.01% 2.80% 69% 1997 3.78% 2.28% 2.85% 135% 1996(3) 3.79%* 2.54%* 2.60%* 63% Georgia Tax-Exempt Bond Fund Trust Shares 1998*** 3.89% 0.77% 3.78% 3% 1998 4.09% 0.81% 3.94% 7% 1997 4.31% 0.81% 4.15% 15% 1996 4.36% 0.89% 4.12% 60% 1995 4.56% 0.98% 4.23% 25% 1994(2) 4.12%* 1.06%* 3.71%* 26% Investor Shares 1998*** 3.69% 1.24% 3.33% 3% 1998 3.89% 1.30% 3.45% 7% 1997 4.10% 1.33% 3.62% 15% 1996 4.17% 1.41% 3.61% 60% 1995 4.31% 1.43% 3.73% 25% 1994(4) 3.93%* 2.36%* 2.42%* 26% Flex Shares 1998*** 3.22% 1.92% 2.67% 3% 1998 3.39% 2.02% 2.73% 7% 1997 3.60% 2.07% 2.88% 15% 1996(5) 3.66%* 2.35%* 2.66%* 60%
(3) Commenced operations on June 1, 1995. (4) Commenced operations on January 19, 1994. (5) Commenced operations on June 6, 1995. (A) Total return figures do not reflect applicable sales loads. The accompanying notes are an integral part of the financial statements. 79 FINANCIAL HIGHLIGHTS (continued) - -------------------------------------------------------------------------------- STI CLASSIC FUNDS For the Period Ended November 30, 1998 (unaudited) and the Years Ended May 31. For a Share Outstanding Throughout the Periods
Net Realized and Net Unrealized Gains Net Asset Value Investment (Losses) Beginning of Period Income on Investments ------------------- ------------- --------------- Investment Grade Bond Fund Trust Shares 1998*** $10.65 $ 0.28 $ 0.29 1998 10.16 0.60 0.49 1997 10.07 0.60 0.09 1996 10.26 0.60 (0.19) 1995 9.89 0.61 0.37 1994 10.45 0.50 (0.36) Investor Shares 1998*** $10.65 $ 0.27 $ 0.29 1998 10.16 0.55 0.49 1997 10.06 0.56 0.10 1996 10.26 0.56 (0.20) 1995 9.89 0.57 0.38 1994 10.44 0.46 (0.35) Flex Shares 1998*** $10.66 $ 0.24 $ 0.29 1998 10.17 0.51 0.49 1997 10.07 0.51 0.10 1996(1) 10.33 0.52 (0.26) Investment Grade Tax-Exempt Bond Fund Trust Shares 1998*** $11.40 $ 0.22 $ 0.23 1998 11.22 0.44 0.50 1997 11.10 0.44 0.33 1996 11.28 0.45 0.19 1995 10.68 0.46 0.60 1994(2) 11.37 0.22 (0.34) Investor Shares 1998*** $11.41 $ 0.20 $ 0.23 1998 11.24 0.39 0.49 1997 11.12 0.40 0.33 1996 11.30 0.41 0.19 1995 10.69 0.42 0.61 1994 10.79 0.33 0.25 Flex Shares 1998*** $11.40 $ 0.17 $ 0.23 1998 11.23 0.33 0.49 1997 11.11 0.35 0.33 1996(3) 11.30 0.37 0.18 Limited-Term Federal Mortgage Securities Fund Trust Shares 1998*** $10.12 $ 0.27 $ 0.12 1998 10.02 0.58 0.11 1997 9.99 0.58 0.04 1996 10.11 0.62 (0.14) 1995(4) 10.00 0.58 0.13 Investor Shares 1998*** $10.11 $ 0.26 $ 0.12 1998 10.00 0.56 0.12 1997 9.97 0.56 0.04 1996 10.11 0.60 (0.14) 1995(5) 9.98 0.58 0.13 Flex Shares 1998*** $10.12 $ 0.24 $ 0.13 1998 10.02 0.52 0.11 1997 9.99 0.52 0.04 1996(1) 10.14 0.55 (0.15) Distributions from Distributions from Net Investment Income Realized Capital Gains --------------------- ---------------------- Investment Grade Bond Fund Trust Shares 1998*** $(0.28) $-- 1998 (0.60) -- 1997 (0.60) -- 1996 (0.60) -- 1995 (0.61) -- 1994 (0.50) (0.20) Investor Shares 1998*** $(0.27) $-- 1998 (0.55) -- 1997 (0.56) -- 1996 (0.56) -- 1995 (0.58) -- 1994 (0.46) (0.20) Flex Shares 1998*** $(0.24) $-- 1998 (0.51) -- 1997 (0.51) -- 1996(1) (0.52) -- Investment Grade Tax-Exempt Bond Fund Trust Shares 1998*** $(0.22) $-- 1998 (0.44) (0.32) 1997 (0.44) (0.21) 1996 (0.45) (0.37) 1995 (0.46) -- 1994(2) (0.22) (0.35) Investor Shares 1998*** $(0.20) $-- 1998 (0.39) (0.32) 1997 (0.40) (0.21) 1996 (0.41) (0.37) 1995 (0.42) -- 1994 (0.33) (0.35) Flex Shares 1998*** $(0.17) $-- 1998 (0.33) (0.32) 1997 (0.35) (0.21) 1996(3) (0.37) (0.37) Limited-Term Federal Mortgage SecuritiesFund Trust Shares 1998*** $(0.27) $-- 1998 (0.58) (0.01) 1997 (0.58) (0.01) 1996 (0.60) -- 1995(4) (0.60) -- Investor Shares 1998*** $(0.26) $-- 1998 (0.56) (0.01) 1997 (0.56) (0.01) 1996 (0.60) -- 1995(5) (0.58) -- Flex Shares 1998*** $(0.24) $-- 1998 (0.52) (0.01) 1997 (0.52) (0.01) 1996(1) (0.55) --
* Annualized. ** Return is for the period indicated and has not been annualized. *** For the semi-annual period ended November 30, 1998. Return is for the period indicated and has not been annualized. (1) Commenced operations on June 7, 1995. (2) Commenced operations on October 21, 1993. 80 - --------------------------------------------------------------------------------
Net Asset Net Assets Ratio of Value End Total End of Expenses to of Period Return (A) Period (000) Average Net Assets ---------- ---------- ------------ ------------------ Investment Grade Bond Fund Trust Shares 1998*** $10.94 5.44% $808,661 0.77% 1998 10.65 10.92% 793,488 0.76% 1997 10.16 6.99% 633,646 0.75% 1996 10.07 4.02% 599,514 0.75% 1995 10.26 10.39% 543,308 0.75% 1994 9.89 1.17% 460,538 0.75% Investor Shares 1998*** $10.94 5.26% $ 33,301 1.17% 1998 10.65 10.49% 33,269 1.14% 1997 10.16 6.66% 33,165 1.15% 1996 10.06 3.50% 36,155 1.15% 1995 10.26 10.04% 33,772 1.15% 1994 9.89 0.86% 35,775 1.14% Flex Shares 1998*** $10.95 4.97% $ 17,843 1.66% 1998 10.66 9.99% 13,111 1.65% 1997 10.17 6.16% 5,763 1.64% 1996(1) 10.07 2.50%* 4,621 1.64%* Investment Grade Tax-Exempt Bond Fund Trust Shares 1998*** $11.63 3.97% $153,649 0.77% 1998 11.40 8.57% 146,606 0.76% 1997 11.22 7.13% 139,144 0.75% 1996 11.10 5.82% 124,507 0.75% 1995 11.28 10.21% 78,208 0.75% 1994(2) 10.68 (1.10%)** 44,595 0.75%* Investor Shares 1998*** $11.64 3.77% $ 26,743 1.17% 1998 11.41 8.05% 28,159 1.16% 1997 11.24 6.69% 31,857 1.15% 1996 11.12 5.40% 37,427 1.15% 1995 11.30 9.91% 41,693 1.15% 1994 10.69 5.37% 46,182 1.14% Flex Shares 1998*** $11.63 3.52% $ 9,415 1.65% 1998 11.40 7.50% 8,399 1.64% 1997 11.23 6.19% 4,681 1.63% 1996(3) 11.11 4.91%* 5,536 1.63%* Limited-Term Federal Mortgage Securities Fund Trust Shares 1998*** $10.24 3.90% $141,353 0.67% 1998 10.12 7.12% 137,488 0.66% 1997 10.02 6.43% 123,903 0.65% 1996 9.99 4.84% 73,370 0.65% 1995(4) 10.11 7.50%** 41,823 0.65%* Investor Shares 1998*** $10.23 3.73% $ 2,351 0.92% 1998 10.11 6.95% 2,705 0.91% 1997 10.00 6.17% 2,426 0.90% 1996 9.97 4.59% 2,512 0.90% 1995(5) 10.11 7.45%** 623 0.90%* Flex Shares 1998*** $10.25 3.69% $ 1,647 1.27% 1998 10.12 6.49% 1,543 1.26% 1997 10.02 5.80% 1,409 1.25% 1996(1) 9.99 4.10%* 1,349 1.25%* Ratio of Ratio of Net Investment Ratio of Expenses to Income (Loss) to Net Investment Average Net Assets Average Net Assets Portfolio Income (Loss) to (Excluding Waivers (Excluding Waivers Turnover Average Net Assets and Reimbursements) and Reimbursements) Rate ------------------ ------------------- ------------------- --------- Investment Grade Bond Fund Trust Shares 1998*** 5.23% 0.86% 5.15% 107% 1998 5.67% 0.86% 5.57% 109% 1997 5.89% 0.85% 5.79% 298% 1996 5.81% 0.87% 5.69% 184% 1995 6.22% 0.88% 6.09% 238% 1994 4.77% 0.88% 4.64% 259% Investor Shares 1998*** 4.89% 1.31% 4.75% 107% 1998 5.29% 1.38% 5.05% 109% 1997 5.48% 1.41% 5.22% 298% 1996 5.40% 1.44% 5.11% 184% 1995 5.79% 1.49% 5.45% 238% 1994 4.39% 1.41% 4.12% 259% Flex Shares 1998*** 4.33% 1.80% 4.19% 107% 1998 4.76% 2.11% 4.30% 109% 1997 5.00% 2.20% 4.44% 298% 1996(1) 4.84%* 2.49%* 3.99%* 184% Investment Grade Tax-Exempt Bond Fund Trust Shares 1998*** 3.80% 0.87% 3.70% 98% 1998 3.83% 0.88% 3.71% 378% 1997 3.96% 0.86% 3.85% 489% 1996 4.01% 0.89% 3.87% 514% 1995 4.34% 0.91% 4.18% 592% 1994(2) 3.46%* 0.95%* 3.26%* 432% Investor Shares 1998*** 3.41% 1.32% 3.26% 98% 1998 3.43% 1.43% 3.16% 378% 1997 3.56% 1.38% 3.33% 489% 1996 3.61% 1.42% 3.34% 514% 1995 3.88% 1.43% 3.60% 592% 1994 2.96% 1.51% 2.59% 432% Flex Shares 1998*** 2.92% 1.86% 2.71% 98% 1998 2.95% 2.10% 2.49% 378% 1997 3.08% 2.15% 2.56% 489% 1996(3) 3.12%* 2.25%* 2.50%* 514% Limited-Term Federal Mortgage Securities Fund Trust Shares 1998*** 5.29% 0.77% 5.20% 202% 1998 5.75% 0.77% 5.64% 163% 1997 5.81% 0.78% 5.68% 133% 1996 6.04% 0.84% 5.85% 83% 1995(4) 6.43%* 0.93%* 6.15%* 68% Investor Shares 1998*** 5.04% 1.49% 4.48% 202% 1998 5.50% 1.51% 4.90% 163% 1997 5.55% 1.48% 4.97% 133% 1996 5.75% 2.25% 4.40% 83% 1995(5) 6.27%* 7.74%* (0.57%)* 68% Flex Shares 1998*** 4.69% 1.96% 4.00% 202% 1998 5.16% 2.72% 3.70% 163% 1997 5.20% 2.66% 3.79% 133% 1996(1) 5.38%* 3.59%* 3.04%* 83%
(3) Commenced operations on June 1, 1995. (4) Commenced operations on June 7, 1994. (5) Commenced operations on July 17, 1994. (A) Total return figures do not reflect applicable sales loads. The accompanying notes are an integral part of the financial statements. 81 FINANCIAL HIGHLIGHTS (concluded) - -------------------------------------------------------------------------------- STI CLASSIC FUNDS For the Period Ended November 30, 1998 (unaudited) and the Years Ended May 31. For a Share Outstanding Throughout the Periods
Net Realized and Net Unrealized Gains Net Asset Value Investment (Losses) Beginning of Period Income (Loss) on Investments ------------------- ------------- --------------- Short-Term Bond Fund Trust Shares 1998*** $10.05 $ 0.27 $ 0.13 1998 9.90 0.55 0.16 1997 9.86 0.53 0.07 1996 9.98 0.54 (0.10) 1995 9.79 0.53 0.19 1994 10.01 0.42 (0.21) Investor Shares 1998*** $10.07 $ 0.26 $ 0.13 1998 9.91 0.53 0.17 1997 9.88 0.51 0.06 1996 10.01 0.52 (0.10) 1995 9.81 0.51 0.19 1994 10.03 0.40 (0.21) Flex Shares 1998*** $10.07 $ 0.24 $ 0.13 1998 9.91 0.50 0.17 1997 9.88 0.48 0.06 1996(1) 10.02 0.47 (0.12) Short-Term U.S. Treasury Securities Fund Trust Shares 1998*** $ 9.97 $ 0.25 $ 0.10 1998 9.88 0.51 0.10 1997 9.84 0.51 0.04 1996 9.93 0.55 (0.09) 1995 9.82 0.47 0.11 1994 9.98 0.33 (0.11) Investor Shares 1998*** $ 9.96 $ 0.24 $ 0.11 1998 9.88 0.49 0.09 1997 9.84 0.50 0.04 1996 9.94 0.54 (0.10) 1995 9.83 0.46 0.11 1994 9.99 0.32 (0.12) Flex Shares 1998*** $ 9.94 $ 0.23 $ 0.10 1998 9.85 0.47 0.10 1997 9.82 0.47 0.03 1996(2) 9.96 0.48 (0.14) U.S. Government Securities Fund Trust Shares 1998*** $10.46 $ 0.30 $ 0.17 1998 10.02 0.61 0.44 1997 9.91 0.62 0.11 1996 10.27 0.62 (0.33) 1995(3) 9.98 0.53 0.29 Investor Shares 1998*** $10.45 $ 0.27 $ 0.18 1998 10.02 0.57 0.43 1997 9.90 0.58 0.12 1996 10.26 0.59 (0.33) 1995(4) 10.00 0.56 0.26 Flex Shares 1998*** $10.46 $ 0.25 $ 0.17 1998 10.02 0.52 0.44 1997 9.91 0.53 0.11 1996(5) 10.31 0.52 (0.37) Distributions from Distributions from Net Investment Income Realized Capital Gains --------------------- ---------------------- Short-Term Bond Fund Trust Shares 1998*** $(0.27) $-- 1998 (0.55) (0.01) 1997 (0.53) (0.03) 1996 (0.54) (0.02) 1995 (0.53) -- 1994 (0.42) (0.01) Investor Shares 1998*** $(0.26) $-- 1998 (0.53) (0.01) 1997 (0.51) (0.03) 1996 (0.53) (0.02) 1995 (0.50) -- 1994 (0.40) (0.01) Flex Shares 1998*** $(0.24) $-- 1998 (0.50) (0.01) 1997 (0.48) (0.03) 1996(1) (0.47) (0.02) Short-Term U.S. Treasury Securities Fund Trust Shares 1998*** $(0.25) $-- 1998 (0.52) -- 1997 (0.51) -- 1996 (0.55) -- 1995 (0.47) -- 1994 (0.33) (0.05) Investor Shares 1998*** $(0.24) $-- 1998 (0.50) -- 1997 (0.50) -- 1996 (0.54) -- 1995 (0.46) -- 1994 (0.31) (0.05) Flex Shares 1998*** $(0.23) $-- 1998 (0.48) -- 1997 (0.47) -- 1996(2) (0.48) -- U.S. Government Securities Fund Trust Shares 1998*** $(0.30) $-- 1998 (0.61) -- 1997 (0.62) -- 1996 (0.62) (0.03) 1995(3) (0.53) -- Investor Shares 1998*** $(0.27) $-- 1998 (0.57) -- 1997 (0.58) -- 1996 (0.59) (0.03) 1995(4) (0.56) -- Flex Shares 1998*** $(0.25) $-- 1998 (0.52) -- 1997 (0.53) -- 1996(5) (0.52) (0.03)
* Annualized. ** Return is for the period indicated and has not been annualized. *** For the semi-annual period ended November 30, 1998. Return is for the period indicated and has not been annualized. (1) Commenced operations on June 20, 1995. (2) Commenced operations on June 22, 1995. The accompanying notes are an integral part of the financial statements. 82 - --------------------------------------------------------------------------------
Net Asset Net Assets Ratio of Value End Total End of Expenses to of Period Return (A) Period (000) Average Net Assets ---------- ---------- ------------ ------------------ Short-Term Bond Fund Trust Shares 1998*** $10.18 3.97% $131,851 0.67% 1998 10.05 7.31% 120,422 0.66% 1997 9.90 6.30% 89,701 0.65% 1996 9.86 4.45% 91,156 0.65% 1995 9.98 7.60% 60,952 0.65% 1994 9.79 2.02% 34,772 0.65% Investor Shares 1998*** $10.20 3.86% $ 1,835 0.87% 1998 10.07 7.19% 1,949 0.86% 1997 9.91 5.97% 2,182 0.85% 1996 9.88 4.23% 2,700 0.85% 1995 10.01 7.44% 2,609 0.85% 1994 9.81 1.81% 2,381 0.85% Flex Shares 1998*** $10.20 3.69% $ 1,933 1.22% 1998 10.07 6.84% 2,110 1.21% 1997 9.91 5.62% 1,073 1.20% 1996(1) 9.88 3.73%* 966 1.20%* Short-Term U.S. Treasury Securities Fund Trust Shares 1998*** $10.07 3.53% $ 47,120 0.67% 1998 9.97 6.30% 46,920 0.66% 1997 9.88 5.76% 21,988 0.65% 1996 9.84 4.73% 10,149 0.65% 1995 9.93 6.11% 9,599 0.65% 1994 9.82 2.17% 12,723 0.65% Investor Shares 1998*** $10.07 3.56% $ 3,027 0.82% 1998 9.96 6.04% 3,277 0.81% 1997 9.88 5.59% 3,921 0.80% 1996 9.84 4.52% 4,192 0.80% 1995 9.94 6.03% 7,144 0.80% 1994 9.83 2.01% 4,841 0.78% Flex Shares 1998*** $10.04 3.33% $ 2,291 1.07% 1998 9.94 5.90% 1,413 1.06% 1997 9.85 5.19% 1,091 1.05% 1996(2) 9.82 3.72%* 2,423 1.05%* U.S. Government Securities Fund Trust Shares 1998*** $10.63 4.39% $ 41,160 0.77% 1998 10.46 10.76% 34,899 0.76% 1997 10.02 7.54% 19,471 0.75% 1996 9.91 2.77% 10,277 0.75% 1995(3) 10.27 8.64%** 3,291 0.75%* Investor Shares 1998*** $10.63 4.04% $ 3,058 1.17% 1998 10.45 10.23% 3,225 1.16% 1997 10.02 7.21% 2,243 1.15% 1996 9.90 2.47% 2,396 1.15% 1995(4) 10.26 8.61%** 589 1.15%* Flex Shares 1998*** $10.63 4.51% $ 4,596 1.68% 1998 10.46 9.78% 4,022 1.67% 1997 10.02 6.57% 2,801 1.66% 1996(5) 9.91 1.42%* 2,826 1.66%* Ratio of Ratio of Net Investment Ratio of Expenses to Income (Loss) to Net Investment Average Net Assets Average Net Assets Portfolio Income (Loss) to (Excluding Waivers (Excluding Waivers Turnover Average Net Assets and Reimbursements) and Reimbursements) Rate ------------------ ------------------- ------------------- --------- Short-Term Bond Fund Trust Shares 1998*** 5.22% 0.78% 5.11% 32% 1998 5.47% 0.79% 5.34% 87% 1997 5.37% 0.78% 5.24% 118% 1996 5.39% 0.81% 5.23% 163% 1995 5.49% 0.85% 5.29% 200% 1994 4.15% 0.85% 3.95% 75% Investor Shares 1998*** 5.02% 1.53% 4.36% 32% 1998 5.27% 1.71% 4.42% 87% 1997 5.16% 1.58% 4.43% 118% 1996 5.20% 1.72% 4.33% 163% 1995 5.24% 1.56% 4.53% 200% 1994 3.94% 2.52% 2.27% 75% Flex Shares 1998*** 4.67% 2.44% 3.45% 32% 1998 4.93% 2.85% 3.29% 87% 1997 4.82% 3.02% 3.00% 118% 1996(1) 4.77%* 4.06%* 1.91%* 163% Short-Term U.S. Treasury Securities Fund Trust Shares 1998*** 4.94% 0.77% 4.84% 23% 1998 5.19% 0.84% 5.01% 39% 1997 5.23% 0.92% 4.96% 93% 1996 5.56% 1.00% 5.21% 94% 1995 4.91% 1.08% 4.48% 88% 1994 3.23% 0.81% 3.07% 117% Investor Shares 1998*** 4.79% 1.29% 4.32% 23% 1998 5.07% 1.33% 4.55% 39% 1997 5.05% 1.35% 4.50% 93% 1996 5.43% 1.32% 4.91% 94% 1995 4.74% 1.33% 4.21% 88% 1994 3.11% 1.41% 2.48% 117% Flex Shares 1998*** 4.53% 2.54% 3.06% 23% 1998 4.81% 2.87% 3.00% 39% 1997 4.75% 2.51% 3.29% 93% 1996(2) 5.03%* 2.97%* 3.11%* 94% U.S. Government Securities Fund Trust Shares 1998*** 5.60% 0.87% 5.50% 6% 1998 5.93% 0.92% 5.77% 14% 1997 6.19% 1.02% 5.92% 21% 1996 6.05% 1.25% 5.55% 83% 1995(3) 6.67%* 3.33%* 4.09%* 30% Investor Shares 1998*** 5.20% 1.57% 4.80% 6% 1998 5.53% 1.76% 4.93% 14% 1997 5.76% 1.79% 5.12% 21% 1996 5.68% 2.50% 4.33% 83% 1995(4) 6.08%* 6.84%* 0.39%* 30% Flex Shares 1998*** 4.69% 2.18% 4.19% 6% 1998 5.02% 2.32% 4.37% 14% 1997 5.26% 2.42% 4.50% 21% 1996(5) 5.18%* 2.86%* 3.98%* 83%
(3) Commenced operations on July 31, 1994. (4) Commenced operations on June 9, 1994. (5) Commenced operations on June 7, 1995. (A) Total return figures do not reflect applicable sales loads. The accompanying notes are an integral part of the financial statements. 83 NOTES TO FINANCIAL STATEMENTS - -------------------------------------------------------------------------------- STI CLASSIC FUNDS November 30, 1998 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 twenty-three portfolios as of November 30, 1998: the Balanced Fund, the Capital Growth Fund, the Emerging Markets Equity Fund, the International Equity Fund, the International Equity Index Fund, the Mid-Cap Equity Fund, the Small Cap Equity Fund, the Small Cap Growth Stock Fund, the Sunbelt Equity Fund, the Value Income Stock Fund, the Florida Tax-Exempt Bond Fund, the Georgia Tax-Exempt Bond Fund, Investment Grade Bond Fund, the Investment Grade Tax-Exempt Bond Fund, the Limited-Term Federal Mortgage Securities Fund, the Short-Term Bond Fund, the Short-Term U.S. Treasury Securities Fund, and the U.S. Government Securities Fund, (collectively the "Non-Dollar Funds"), the Prime Quality Money Market Fund, the U.S. Government Securities Money Market Fund, the Tax-Exempt Money Market Fund, the Classic Institutional Cash Management Money Market Fund and the Classic Institutional U.S. Treasury Securities Money Market Fund, (collectively the "Money Market 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. The financial statements of the Money Market Funds are not presented herein, but are presented separately. 2. Significant Accounting Policies: The following is a summary of significant accounting policies followed by the Trust. Security Valuation -- Investment securities held by the Non-Dollar Funds that are listed on a securities exchange for which market quotations are available are valued at the last quoted sales price 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 Emerging Markets Equity Fund, 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 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 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. 84 - -------------------------------------------------------------------------------- Unaudited Net Asset Value Per Share -- The net asset value per share of each fund is calculated each business day, by dividing the total value of each fund's assets, less liabilities, by the number of shares outstanding. The maximum offering price per share for Investor shares of the Balanced, the Capital Growth, the International Equity, the International Equity Index, the Mid-Cap Equity, the Sunbelt Equity, the Value Income Stock, the Florida Tax-Exempt Bond, the Georgia Tax-Exempt Bond, the Investment Grade Bond, the Investment Grade Tax-Exempt Bond and the U.S. Government Securities 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 Emerging Markets Equity, 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 Emerging Markets Equity, the International Equity and the International Equity Index Funds do not isolate that portion of gains and losses on investments in equity securities that is due to changes in the foreign exchange rates from that which is due to changes in market prices of equity securities. The Emerging Markets Equity, the International Equity and the International Equity Index Funds report certain foreign currency related transactions as components of realized and unrealized gains and losses for financial reporting purposes, whereas such components are treated as ordinary income for Federal income tax purposes. TBA Purchase Commitments -- The Fixed Income Portfolios may enter into "TBA" (To Be Announced) purchase commitments to purchase securities for a fixed price at a future date beyond customary settlement time. TBA purchase commitments may be considered securities in themselves, and involve a risk of loss if the value of the security to be purchased declines prior to settlement date, which risk is in addition to the risk of decline in the value of the funds' other assets. Unsettled TBA purchase commitments are valued at the current market value of the underlying securities, generally according to the procedures described under "Security Valuation." 85 NOTES TO FINANCIAL STATEMENTS (continued) - -------------------------------------------------------------------------------- STI CLASSIC FUNDS November 30, 1998 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 the Florida Tax-Exempt Bond, the Georgia Tax-Exempt Bond, the Investment Grade Bond, the Investment Grade Tax-Exempt Bond, the Limited-Term Federal Mortgage Securities the Short-Term Bond, the Short-Term U.S. Treasury Securities and the U.S. Government Securities Funds are declared 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 Balanced, the Capital Growth, the Mid-Cap Equity, the Small Cap Equity, the Small Cap Growth Stock, the Sunbelt Equity, and the Value Income Stock Funds. Distributions from net investment income are declared and paid annually by the Emerging Markets Equity, 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. Use of Estimates -- The preparation of the financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that effect the reported amount of assets and liabilities, disclosure of contingent assets and liabilities at the date of the financial statements, and reported amounts of revenues and expenses during the reporting period. Actual amounts could differ from these estimates. 3. Organization Costs and Transactions with Affiliates: The Trust incurred organization costs of approximately $808,836 including approximately $395,594 relating to state registration fees. 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 with the exception of state registration fees, which are being amortized over a period of twelve months. The costs include legal fees of approximately $60,383 for organizational work performed by a law firm of which two officers of the Trust are partners. On March 18, 1992, the Trust sold initial shares of beneficial interest to SEI Investments Mutual Fund Services (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 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. In April 1998, the AICPA issued Statement of Position (SOP) No. 98-5, "Reporting on the Costs of Start-Up Activities." This SOP provides guidance on the financial reporting of start-up costs and organization costs and requires costs of start-up activities and organization costs to be expensed as incurred. Investment companies that began operations prior to June 30, 1998 can adopt the SOP prospectively. Therefore, previously capitalized organization costs will continue to be amortized as discussed above. Any future start-up or organization costs will be expensed as incurred. Certain officers of the Trust are also officers of the Administrator and/or SEI Investments Distribution Co. (the "Distributor"). Such officers are paid no fees by the Trust for serving as officers of the Trust. 86 - -------------------------------------------------------------------------------- Unaudited 4. Administration, Transfer Agency Servicing and Distribution Agreements: The Trust and the Administrator are parties to an Administration Agreement dated May 29, 1995, as amended November 19, 1997 under which the Administrator provides administrative services for an annual fee (expressed as a percentage of the combined average daily net assets of the Trust and STI Classic Variable Trust) of: .12% up to $1 billion, .09% on the next $4 billion, .07% on the next $3 billion, .065% on the next $2 billion and .06% 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 regarding the Flex Shares and a Distribution Agreement dated November 21, 1995 with respect to the Trust and Investor shares. 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 Distribution and 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 Management ("Trusco") and the SunTrust Bank, Atlanta have entered into advisory agreements dated May 29, 1992, June 15, 1993, and December 20, 1993 respectively. 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% 1.07% .38% 1.47% 1.00% 2.12% Small Cap Growth Stock Fund......... 1.15% 1.20% -- -- 1.00% 2.25% Sunbelt Equity Fund............... 1.15% 1.17% .43% 1.62% 1.00% 2.22% Short-Term Bond Fund............... .65% .67% .23% .87% 1.00% 1.22% Short-Term U.S. Treasury Securities Fund............... .65% .67% .18% .82% 1.00% 1.07% U.S. Government Securities Fund............... .74% .77% .38% 1.17% 1.00% 1.68% 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.: Balanced Fund....... .95% .97% .28% 1.27% 1.00% 2.03% Capital Growth Fund............... 1.15% 1.17% .68% 1.82% 1.00% 2.29% Emerging Markets Equity Fund........ 1.30% 1.57% -- -- -- -- International Equity Fund........ 1.25% 1.48% .33% 1.83% 1.00% 2.53% Mid-Cap Equity Fund............... 1.15% 1.17% .43% 1.62% 1.00% 2.22% Small Cap Equity Fund........ 1.15% 1.22% -- -- 1.00% 2.27% Value Income Stock Fund......... .80% .97% .33% 1.32% 1.00% 2.02% Florida Tax-Exempt Bond Fund.......... .65% .67% .18% .87% 1.00% 1.37% Investment Grade Bond Fund............... .74% .77% .43% 1.17% 1.00% 1.66% Investment Grade Tax-Exempt Bond Fund.......... .74% .77% .43% 1.17% 1.00% 1.65% Limited-Term Federal Mortgage Securities Fund............... .65% .67% .23% .92% 1.00% 1.27% SunTrust Bank, Atlanta: Georgia Tax-Exempt Bond Fund.......... .65% .67% .18% .87% 1.00% 1.37% - ----------------- *Trusco and STI Capital Management, N.A. serve as joint advisors to the International Equity Index Fund. 87 NOTES TO FINANCIAL STATEMENTS (continued) - -------------------------------------------------------------------------------- STI CLASSIC FUNDS November 30, 1998 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 Emerging Markets Equity, the International Equity and the International Equity Index Funds who utilize the Bank of New York as custodian. 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 November 30, 1998, were as follows: Purchases Sales (000) (000) --------- --------- Balanced Fund............................... $ 33,948 $ 28,942 Capital Growth Fund......................... 1,382,318 1,325,549 Emerging Markets Equity Fund................ 7,864 10,401 International Equity Fund................... 362,886 372,144 International Equity Index Fund............. 13,646 17,703 Mid-Cap Equity Fund......................... 106,979 124,797 Small Cap Equity Fund....................... 94,263 90,494 Small Cap Growth Stock Fund................. 11,941 1,015 Sunbelt Equity Fund......................... 177,955 204,016 Value Income Stock Fund..................... -- -- Florida Tax-Exempt Bond Fund................ 56,713 45,162 Georgia Tax-Exempt Bond Fund................ 14,231 2,565 Investment Grade Bond Fund.................. 235,851 274,021 Investment Grade Tax-Exempt Bond Fund....... 176,535 177,392 Limited-Term Federal Mortgage Securities Fund...................................... -- -- Short-Term Bond Fund........................ 18,351 17,404 Short-Term U.S. Treasury 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) --------- --------- Balanced Fund................................ $ 66,780 $ 61,656 Capital Growth Fund.......................... -- -- Mid-Cap Equity Fund.......................... -- -- Small Cap Equity Fund........................ -- -- Small Cap Growth Stock Fund.................. -- -- Sunbelt Equity............................... -- -- Value Income Stock Fund...................... -- -- Florida Tax-Exempt Bond Fund................. -- -- Georgia Tax-Exempt Bond Fund................. -- -- Investment Grade Bond Fund................... 640,812 582,976 Investment Grade Tax-Exempt Bond Fund........ -- -- Limited-Term Federal Mortgage Securities Fund....................................... 280,071 277,542 Short-Term Bond Fund......................... 18,842 18,364 Short-Term U.S. Treasury Securities Fund..... 11,212 11,363 U.S. Government Securities Fund.............. 10,576 2,744 At November 30, 1998, the total cost of securities and the net realized gains or losses on securities sold for Federal income tax purposes were not materially different from amounts reported for financial reporting purposes. The aggregate gross unrealized appreciation and depreciation for securities held by the funds at November 30, 1998, were as follows: Aggregate Aggregate Net Gross Gross Unrealized Unrealized Unrealized Appreciation/ Appreciation Depreciation Depreciation ------------ ------------- ------------- Balanced Fund..................... $ 36,474 $ (4,130) $ 32,344 Capital Growth Fund............... 459,009 (56,112) 402,897 Emerging Markets Equity Fund...... 2,141 (10,393) (8,252) International Equity Fund......... 75,564 (32,754) 42,810 International Equity Index Fund... 18,416 (6,484) 11,932 Mid-Cap Equity Fund............... 61,982 (35,811) 26,171 Small Cap Equity Fund............. 23,247 (61,029) (37,782) Small Cap Growth Stock Fund....... 1,527 (167) 1,360 Sunbelt Equity Fund............... 65,085 (29,598) 35,487 Value Income Stock Fund........... 217,082 (121,241) 95,841 Florida Tax-Exempt Bond Fund...... 4,283 (34) 4,249 Georgia Tax-Exempt Bond Fund...... 3,425 (19) 3,406 Investment Grade Bond Fund........ 30,803 (1,237) 29,566 Investment Grade Tax-Exempt Bond Fund...................... 3,813 (19) 3,794 Limited-Term Federal Mortgage Securities Fund................ 1,296 (142) 1,154 Short-Term Bond Fund.............. 2,342 (90) 2,252 Short-Term U.S. Treasury Securities Fund................ 602 -- 602 U.S. Government Securities Fund... 1,743 (39) 1,704 88 - -------------------------------------------------------------------------------- Unaudited 7. Concentration of Credit Risk: The Balanced Fund, the Investment Grade Bond Fund and the Short-Term Bond 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 investment advisor to be of comparable quality. The Investment Grade Tax-Exempt Fund invests primarily in investment grade municipal securities. Municipal 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 and the Georgia 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. 8. Subsequent Event: On July 20, 1998 it was announced that Crestar Financial Corporation ("Crestar"), the parent of Crestar Bank, and SunTrust Banks, Inc. ("SunTrust") had signed a definitive agreement for the acquisition of Crestar by SunTrust. The acquisition of Crestar by SunTrust was completed on December 31, 1998. It is currently the intention of Crestar and SunTrust to file an exemptive application with the Securities and Exchange Commission to permit the combination of certain of the CrestFunds with certain of the STI Classic Funds (mutual funds that are served by investment advisers that are subsidiaries of SunTrust). Any combination of CrestFunds and STI Classic Funds would require the approval of the board of directors and the shareholders of the CrestFunds. 89 NOTES NOTES NOTES -----END PRIVACY-ENHANCED MESSAGE-----