-----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, QE2QLI3PjLyrckfH772yut/1PHMYytN+yNBNrmQg2q/fxyisQXeBiPwz0rOtdYBT 00myxUU/GsGCxeWi6D9Fkg== 0000935069-99-000141.txt : 19990811 0000935069-99-000141.hdr.sgml : 19990811 ACCESSION NUMBER: 0000935069-99-000141 CONFORMED SUBMISSION TYPE: N-30D PUBLIC DOCUMENT COUNT: 1 CONFORMED PERIOD OF REPORT: 19990531 FILED AS OF DATE: 19990803 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: 99676675 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 ANNUAL REPORT ANNUAL ............................................................................... FINANCIAL REPORT ............................................................................... STI CLASSIC EQUITY FUNDS ............................................................................... A Family of Mutual Funds ............................................................................... May 31, 1999 [logo] Dear Valued STI Classic Trust Shareholder: As of May 31, 1999 your STI Classic Funds reached a new milestone with assets totaling $19.96 billion. This dramatic increase is a direct result of two major factors over the past year. First, growth within the existing STI Funds exceeded 20%. Secondly, as of May 24, 1999, the CrestFunds, which were proprietary mutual funds of Crestar Financial Corporation, and two of the Arbor Funds, which were advised by Crestar Asset Management Co., merged into the STI Classic Funds. The Funds' merger followed the corporate merger between SunTrust Banks, Inc. and Crestar Financial Corporation on December 31, 1998. Your new STI Classic Funds family now consists of 34 stock, bond, and money market funds and currently ranks among the 15 largest bank proprietary fund complexes. Additionally, as a result of the merger, shareholders have a broader and more diversified variety of funds from which to choose. The U.S. economic expansion is now approaching nine years in duration while inflation continues to be quite low. As a result, stock market returns have been excellent. However, long-term interest rates recently rebounded to over 6% in yield and the Federal Reserve Board increased short-term interest by one quarter of one percent. These rate increases are due to fears that the accelerated economic growth of late 1998 and early 1999 will lead to higher inflation. We believe that the recent increase in interest rates will lead to slower, more sustainable economic growth and inflation will continue to be modest. As always, your STI Classic Funds continue to be managed with a disciplined, quality oriented approach. Accordingly, we believe you, our valued shareholders, are well positioned for the current and future investment environment. On behalf of all of the advisors to the Funds, thank you for your confidence and the opportunity to help you achieve your investment objectives. Sincerely, /s/ Signature omitted ----------------------------------- Anthony R. Gray Chairman, Chief Investment Officer STI Capital Management, N.A. /s/ Signature omitted ----------------------------------- Douglas S. Phillips, CFA President, Chief Investment Officer Trusco Capital Management, Inc. STI Classic Balanced Fund ------------------------- The STI Classic Balanced Fund ("the Fund") seeks capital appreciation and current income through investments in a diversified portfolio of common stocks, bonds and money market securities. The Fund uses a bottom-up selection process to find stocks of high quality companies with a history of earnings growth. Bonds are selected by attempting to exploit undervalued bond sectors and areas along the yield curve. No more than 70% of the total assets of the Fund are invested in stocks and no more than 60% are invested in bonds. At least 20% of the Fund's total assets will be in senior fixed income securities. The Fund's return from June 1998 to May 1999 was 10.98% (Trust Shares). The Fund's index, 50% S&P 500 Composite Index and 50% Lehman Government Corporate Bond Index, which has no fees taken out, had a return of 12.54%. The last 12 months was another year of strong price increases for the U.S. stock market. Fears of a weak domestic economy and a collapse of Latin American economies drove the market down in July, August, September and October. These fears proved to be unfounded and the market had a ferocious rally off its October lows. This rally was fueled by large growth stocks (primarily technology and the internet). The market had a major shift in April as the "have-nots", i.e. cyclical and smaller cap stocks, exploded. We have used the corrections to buy strong growth companies at reasonable prices. Major purchases by industries include healthcare, technology and communication services. Major sales were in consumer staples. Our outlook for the next year is for a strong domestic economy and an improving worldwide economy. We think higher interest rates will put a damper on the overall market. Over the past year we have had relatively volatile fixed income markets. Long-term treasury yields declined to 4.75% in the second half of 1998 as market turmoil led to a stampede into the Treasury market by investors looking for safety and liquidity. Our long treasury positions aided performance during this period. Corporate and mortgage positions lagged dramatically. As we moved into 1999, the process reversed as mortgages and corporates performed well and interest rates approached 6% at the end of the period. During this period, we reduced our duration (average maturity) which contributed to the total return of the Fund. We also reduced our mortgage positions, which were relatively defensive in nature as interest rates increased. We also extended the Fund's duration (average maturity) as interest rates increased to more attractive levels. We expect economic growth to slow some from the recent steamy pace but to remain relatively firm and we will therefore continue to overweight the corporate sector, which currently represents good value. /s/ Signature omitted ----------------------------------- Anthony R. Gray Chairman, Chief Investment Officer /s/ Signature omitted ----------------------------------- L. Earl Denney, CFA Managing Director 2 Trust Shares
[STI Classic Balanced Fund Trust Shares Line Graphic Omitted] - ------------------------------------------------------------------------------------------------- Annualized Annualized Annualized Cumulative One Year 3 Year 5 Year Inception Inception Return Return Return to Date to Date - ------------------------------------------------------------------------------------------------- 10.98% 16.51% 15.05% 13.46% 98.01% - -------------------------------------------------------------------------------------------------
STI Classic Balanced Fund, Trust Shares S&P 500 Composite Index Lehman Government/Corporate Bond Index Lipper Balanced Funds Average Plot points are as follows:
- ------------------------------------------------------------------------------------------------------------------ STI Classic S&P 500 Lehman Government Lipper Balanced Fund Composite Corporate Bond Balanced Funds Trust Shares Index Index Average - ------------------------------------------------------------------------------------------------------------------ 1/31/94 10,000 10,000 10,000 10,000 5/31/94 9,554 9,579 9,446 9,502 5/31/95 10,387 11,510 10,543 10,662 5/31/96 12,180 14,781 10,975 12,551 5/31/97 14,210 19,126 11,842 14,607 5/31/98 17,357 24,992 13,202 17,441 5/31/99 19,263 30,253 13,738 18,965 - ------------------------------------------------------------------------------------------------------------------
Investor Shares
[STI Classic Balanced Fund Investor Shares Line Graphic Omitted] - --------------------------------------------------------------------------------------------------------------------- Annualized Annualized Annualized Cumulative One Year 3 Year 5 Year Inception Inception Return Return Return to Date to Date - --------------------------------------------------------------------------------------------------------------------- 10.70% 16.14% 14.67% 13.05% 94.12% Without Load 6.56% 14.68% 13.80% 12.25% 86.84% With Load - ---------------------------------------------------------------------------------------------------------------------
STI Classic Balanced Fund, Investor Shares S&P 500 Composite Index Lehman Government/Corporate Bond Index Lipper Balanced Funds Average Plot points are as follows:
- ------------------------------------------------------------------------------------------------------------------ STI Classic S&P 500 Lehman Government Lipper Balanced Fund Composite Corporate Bond Balanced Funds Investors Shares Index Index Average - ------------------------------------------------------------------------------------------------------------------ 1/31/94 9,625 10,000 10,000 10,000 5/31/94 9,238 9,579 9,446 9,502 5/31/95 10,004 11,510 10,543 10,662 5/31/96 11,693 14,781 10,975 12,551 5/31/97 13,595 19,126 11,842 14,607 5/31/98 16,548 24,992 13,202 17,441 5/31/99 18,319 30,253 13,738 18,965 - ------------------------------------------------------------------------------------------------------------------
Flex Shares
[STI Classic Balanced Fund Flex Shares Line Graphic Omitted] - -------------------------------------------------------------------------------------------------- Annualized Annualized Cumulative One Year 3 Year Inception Inception Return Return to Date to Date - -------------------------------------------------------------------------------------------------- 9.84% 15.28% 15.41% 76.22% Without Load 7.84% With Load - --------------------------------------------------------------------------------------------------
STI Classic Balanced Fund, Flex Shares S&P 500 Composite Index Lehman Government/Corporate Bond Index Lipper Balanced Funds Average Plot points are as follows:
- ------------------------------------------------------------------------------------------------------------------ STI Classic S&P 500 Lehman Government Lipper Balanced Fund Composite Corporate Bond Balanced Funds Flex Shares Index Index Average - ------------------------------------------------------------------------------------------------------------------ 6/30/95 10,000 10,000 10,000 10,000 5/31/96 11,401 12,549 10,327 11,553 5/31/97 13,157 16,239 11,143 13,445 5/31/98 15,900 21,219 12,422 16,054 5/31/99 17,465 25,686 12,927 17,457 - ------------------------------------------------------------------------------------------------------------------
Past performance is no indication of future performance. The Funds' comparative benchmarks do not include the annual operating expenses incurred by the Fund. 3 STI Classic Capital Appreciation Fund ------------------------------------- The STI Classic Capital Appreciation Fund (formerly STI Classic Capital Growth Fund) ("the Fund") seeks capital appreciation by investing primarily in stocks which, in the advisor's opinion, are undervalued in the marketplace at the time of purchase. A security is selected for the Fund when it appears undervalued based on a number of measures such as relative price divided by earnings and relative price divided by growth. The Fund's return from June 1998 to May 1999 was 17.83% (Trust Shares). The Fund underperformed its index, the S&P 500 Composite Index, by 3.22%. The last 12 months was another year of strong price increases for the U.S. stock market. Fears of a weak domestic economy and a collapse of Latin American economies drove the market down in the July, August, September and October. These fears proved to be unfounded and the market had a ferocious rally off its October lows. This rally was fueled by large growth stocks (primarily technology and the internet). The market had a major shift in April as the "have-nots", i.e. cyclical and smaller cap stocks exploded. We have used the corrections to buy strong growth companies at reasonable prices. Major purchases by industries include healthcare, technology and communication services. Major sales were in consumer staples. Our outlook for the next year is for a strong domestic economy and an improving worldwide economy. We think higher interest rates will put a damper on the overall market. /s/ Signature omitted ----------------------------------- Anthony R. Gray Chairman, Chief Investment Officer 4 Trust Shares
[STI Classic Capital Appreciation Fund Trust Shares Line Graphic Omitted] - ------------------------------------------------------------------------------------------------- Annualized Annualized Annualized Cumulative One Year 3 Year 5 Year Inception Inception Return Return Return to Date to Date - ------------------------------------------------------------------------------------------------- 17.83% 23.91% 21.21% 18.10% 216.18% - -------------------------------------------------------------------------------------------------
STI Classic Capital Appreciation Fund, Trust Shares S&P 500 Composite Index Lipper Growth Fund Average Plot points are as follows:
- ------------------------------------------------------------------------------------- STI Classic S&P 500 Lipper Capital Appreciation Fund Composite Growth Funds Trust Shares Index Average - ------------------------------------------------------------------------------------- 7/31/92 10,000 10,000 10,000 5/31/93 11,203 10,885 11,199 5/31/94 11,638 11,345 11,795 5/31/95 12,409 13,631 13,426 5/31/96 16,004 17,505 17,377 5/31/97 19,951 22,652 20,646 5/31/98 25,938 29,599 26,053 5/31/99 30,445 35,830 30,276 - -------------------------------------------------------------------------------------
Investor Shares
[STI Classic Capital Appreciation Fund Investor Shares Line Graphic Omitted] - --------------------------------------------------------------------------------------------------------------------- Annualized Annualized Annualized Cumulative One Year 3 Year 5 Year Inception Inception Return Return Return to Date to Date - --------------------------------------------------------------------------------------------------------------------- 17.20% 23.12% 20.44% 17.81% 213.81% Without Load 12.80% 21.57% 19.52% 17.16% 202.03% With Load - ---------------------------------------------------------------------------------------------------------------------
STI Classic Appreciation Fund, Investor Shares S&P 500 Composite Index Lipper Growth Fund Average Plot points are as follows:
- ------------------------------------------------------------------------------------- STI Classic S&P 500 Lipper Capital Appreciation Fund Composite Growth Funds Investor Shares Index Average - ------------------------------------------------------------------------------------- 6/30/92 9,625 10,000 10,000 5/31/93 11,206 11,329 11,595 5/31/94 11,572 11,808 12,212 5/31/95 12,258 14,187 13,901 5/31/96 15,712 18,219 17,992 5/31/97 19,442 23,576 21,377 5/31/98 25,024 30,807 26,975 5/31/99 29,328 37,292 31,348 - -------------------------------------------------------------------------------------
Flex Shares
[STI Classic Capital Appreciation Fund Flex Shares Line Graphic Omitted] - -------------------------------------------------------------------------------------------------- Annualized Annualized Cumulative One Year 3 Year Inception Inception Return Return to Date to Date - -------------------------------------------------------------------------------------------------- 16.50% 22.53% 23.82% 134.49% Without Load 14.51% With Load - --------------------------------------------------------------------------------------------------
STI Classic Capital Appreciation Fund, Flex Shares S&P 500 Composite Index Lipper Growth Fund Average Plot points are as follows:
- ------------------------------------------------------------------------------------- STI Classic S&P 500 Lipper Capital Appreciation Fund Composite Growth Funds Flex Shares Index Average - ------------------------------------------------------------------------------------- 6/30/95 10,000 10,000 10,000 5/31/96 12,387 12,549 12,437 5/31/97 15,266 16,239 14,777 5/31/98 19,559 21,219 18,647 5/31/99 22,786 25,686 21,669 - -------------------------------------------------------------------------------------
Past performance is no indication of future performance. The Funds' comparative benchmarks do not include the annual operating expenses incurred by the Fund. 5 STI Classic Emerging Markets Equity Fund ---------------------------------------- The STI Classic Emerging Markets Equity Fund ("The Fund") invests in equity securities of foreign issuers located in developing countries and seeks to provide long-term capital appreciation. We strive to provide investment results that outperform the emerging markets and the average emerging markets mutual fund while at the same time limiting risk. Through a bottom-up technique, the Fund focuses on companies that exhibit top managements, quality products, and sound financial strength. Our goal is to find companies that fit the above criteria but are selling at a discount to their global peers. The Fund's performance for June 1998 to May 1999 was -6.22% while the MSCI Emerging Markets Free Index returned 4.75%. Over the past years, the star region has been Asia. After a tumultuous 1997, Asia regained its economic strength and has witnessed a recovery. GDP growth has reaccelerated across the region and stimulus packages have been set in place to assure that growth continues. Banks have begun lending again and consumers have been revived. This recovery, while anticipated, occurred quicker than we expected, and has contributed to the Fund's relative under performance. Brazil and Latin America crashed later in the fiscal year, but proceeded to rebound even quicker. In February of 1998, Brazil was forced to depeg its currency from the U.S. dollar. This caused a sharp decline in the Brazilian currency, the Real. This sent shock waves across all of Latin America, which quickly found its markets down over 50%. Brazil's government responded with proper reforms that brought the market back from the brink. This rebound continues as we enter 1999. As interest rates continue to fall across the region, further equity gains are expected. While the markets have been quick to rebound, it will take more strife for these economies to return to post crisis form. Markets focus on future events, and while a revival of these economies is priced into the markets, these economies are not completely out of the woods yet. Governments must continue to push reform, and banks and investors must continue to provide capital only to those companies fit to compete in a global economy. We continue to look for such companies across the developing world. /s/ Signature omitted ----------------------------------- Ned Dau Managing Director 6 Trust Shares [STI Classic Emerging Markets Equity Fund Trust Shares Line Graphic Omitted] - ----------------------------------------------------------------------------- Annualized Annualized Cumulative One Year 3 Year Inception Inception Return Return to Date to Date - ----------------------------------------------------------------------------- - -6.22% -1.71% -6.62% -4.74% - ----------------------------------------------------------------------------- STI Classic Emerging Markets Equity Fund, Trust Shares MSCI Emerging Markets Free Index Plot points are as follows: - ------------------------------------------------------------------- STI Classic MSCI Emerging Markets Equity Emerging Markets Fund Trust Shares Free Index - ------------------------------------------------------------------- 3/31/96 10,000 10,000 5/31/96 10,978 10,353 5/31/97 13,191 11,157 5/31/98 11,115 8,000 5/31/99 10,423 8,278 - ------------------------------------------------------------------- Past performance is no indication of future performance. *The performance quoted includes past performance of the Common Trust Fund managed by STI Capital Management, N.A. adjusted for fees and expenses. The Common Trust Fund was not registered under the 1940 Act and therefore was not subject to certain investment restrictions which may have adversely affected performance. The Funds' comparative benchmarks do not include the annual operating expenses incurred by the Fund. 7 STI Classic Growth and Income Fund ---------------------------------- The STI Classic Growth and Income Fund (the "Fund") is the newest equity fund member of the STI Classic family, as the successor fund to the former CrestFunds Value Fund. CrestFunds merged into STI on May 24, 1999. The Growth and Income Fund invests primarily in a diversified mix of domestic and the ADR's of foreign common stocks of companies with market capitalization of at least $1 billion. The Fund uses a quantitative screening process to help select stocks of companies from both the value and growth equity investment styles. The Fund seeks long term appreciation from large-cap equities while buffering the volatility of returns. The past year was turbulent, but gratifying, for the economy and the stock markets, as policy-makers and investors successfully navigated potential significant pitfalls. The current economic expansion reached its eighth anniversary, with continued low inflation, while both the Dow Jones Industrial Average and the S&P 500 achieved another year of double-digit returns. The Fund performed well in this changing environment, taking advantage of its positioning in both select growth and value type issues. The Fund returned 15.58% (Trust Shares) during the fiscal year ended May 31, 1999. The beginning of the fiscal year, the second half of 1998, was strongly influenced by continuing reverberations of the 1997 Asian financial crisis. Russia and Latin America suffered most from the backlash as investors moved to higher quality, more liquid financial markets. Diminishing profit expectations and political scandal here at home only added to investor uncertainty. The S&P 500 fell 10.3% during the third quarter on a price-only basis, though it lost as much as 19.3% between mid-July and the end of August. Falling commodity prices across the spectrum hurt stocks in the basic materials and energy sectors, while rising credit concerns and trading losses pummeled financial stocks. Corporate profits during this time were increasingly weak, contracting over 3% on a year over year basis in the third quarter. The Federal Reserve responded to the crisis last fall by cutting interest rates three times, and the major indexes completely recovered from the "bear" market within another six weeks. Stock market sectors that fared well tended to have a domestic, consumer-oriented focus or were linked to technology and productivity investment. Healthcare companies and consumer cyclicals represented the former, while networking, software, and computer-related companies represented the latter category. Large growth issues performed extremely well while most value-oriented stocks struggled. The Fund's best performance was realized from technology holdings such as Cisco Systems, Microsoft, Intel and Sun Microsystems. Outside of technology, holdings such as Lowe's, Schering-Plough, Amgen, and CIGNA also contributed strong relative performance. By the first quarter of 1999, glimmers of economic hope began to appear for battered economies in the Pacific rim region as well as in Latin America. In addition, oil prices, which plummeted to under $11/barrel, jumped over 70% on news that world oil producers were acting together to reduce the global energy glut. S&P 500 operating profits rose by 10% during the first quarter. Big cap, growth oriented, technology companies, continued to fare well though vigorous sector rotation persisted. Along with technology, consumer cyclical, energy and finance shares rose during the first quarter, a harbinger that the under-performing value stocks were poised for recovery. In April, fears of future inflation helped investors dramatically reduce their exposure to the high price/earnings growth stocks in favor of more cyclically and inflation sensitive value-oriented companies. During the early part of the year, the Fund reduced its exposure to healthcare and technology while increasing its exposure to depressed and economically sensitive areas of the market. The dramatic under performance of the "value" issues offered an opportunity to increase the portfolio's "tilt" toward value, which had a significant positive impact on performance in the closing months of the fiscal year. The outlook for the U.S. and world economies remains favorable based on current reports, improving prospects for corporate earnings growth over the near term. While tight labor markets remain a concern for the inflation-wary Fed, structural imbalances and excess inventories appear to be lacking. This suggests that companies may be able to adjust price and production schedules relatively quickly in response to future changes demand or Fed policy. The STI Classic Growth and Income Fund will continue to adjust its mix of value and growth stocks in this evolving environment in order to maximize returns to our shareholders while limiting volatility. /s/ Signature ------------------------------------ Jeffrey E. Markunas, CFA 8 Trust Shares [STI Classic Growth and Income Fund Trust Shares Line Graphic Omitted] - -------------------------------------------------------------------------------- Annualized Annualized Annualized Cumulative One Year 3 Year 5 Year Inception Inception Return Return Return to Date to Date - -------------------------------------------------------------------------------- 15.58% 21.38% 20.70% 17.68% 196.58% - -------------------------------------------------------------------------------- STI Classic Growth and Income Fund, Trust Shares S&P 500 Index Plot points are as follows: - ----------------------------------------------------------- STI Classic S&P Growth and Income Fund 500 Trust Shares Index - ----------------------------------------------------------- 9/30/92 10,000 10,000 5/31/93 11,363 10,982 5/31/94 11,462 11,446 5/31/95 13,204 13,753 5/31/96 16,420 17,661 5/31/97 20,070 22,854 5/31/98 25,406 29,863 5/31/99 29,364 36,149 - ----------------------------------------------------------- Investor Shares [STI Classic Growth and Income Fund Investor Shares Line Graphic Omitted] - -------------------------------------------------------------------------------- Annualized Annualized Annualized Cumulative One Year 3 Year 5 Year Inception Inception Return Return Return to Date to Date - -------------------------------------------------------------------------------- 15.66% 21.38% 20.69% 17.49% 165.93% Without Load 11.30% 19.86% 19.77% 16.75% 155.96% With Load - -------------------------------------------------------------------------------- STI Classic Growth and Income Fund, Investor Shares S&P 500 Index Plot points are as follows: - ----------------------------------------------------------- STI Classic S&P Growth and Income Fund 500 Investor Shares Index - ----------------------------------------------------------- 5/31/93 9,625 10,000 5/31/94 9,712 10,423 5/31/95 11,190 12,523 5/31/96 13,909 16,082 5/31/97 17,004 20,811 5/31/98 21,506 27,193 5/31/99 24,889 32,917 - ----------------------------------------------------------- Flex Shares [STI Classic Growth and Income Fund Flex Shares Line Graphic Omitted] - -------------------------------------------------------------------------------- Annualized Annualized Cumulative One Year 3 Year Inception Inception Return Return to Date to Date - -------------------------------------------------------------------------------- 14.76% 20.51% 21.70% 125.68% Without Load 12.76% With Load - -------------------------------------------------------------------------------- STI Classic Growth and Income Fund, Flex Shares S&P 500 Index Plot points are as follows: - ----------------------------------------------------------- STI Classic S&P Growth and Income Fund 500 Flex Shares Index - ----------------------------------------------------------- 4/30/95 10,000 10,000 5/31/96 12,721 13,354 5/31/97 15,440 17,281 5/31/98 19,403 22,581 5/31/99 22,267 27,334 - ----------------------------------------------------------- Past performance is no indication of future performance. The Funds' comparative benchmarks do not include the annual operating expenses incurred by the Fund. 9 STI Classic International Equity Fund ------------------------------------- The STI Classic International Equity Fund ("The Fund") invests in equity securities of foreign issuers and seeks to provide long term capital appreciation. We strive to obtain investment results that outperform the international markets and the average international mutual funds. The Fund focuses on sector and company fundamentals specifically looking for companies that exhibit top managements, quality products and sound financial positions. Our goal is to find companies that fit the above criteria but are still selling at a discount to their global peers. The Fund's performance for the year June 1998 to May 1999 was -7.43% (Trust Shares) vs. MSCI EAFE of 4.36%. Over the past year, many changes have occurred. Eleven western european countries combined currencies to create one common currency, the Euro, Asia has rallied off its bottom, and many markets have seen +50% returns. Brazil and Latin America experienced a collapse, only to quickly rebound after Brazil depegged its currency from the dollar. Japan has also rebounded off its lows due to economic stimulus packages and positive news flow, though earnings are still lagging. Recent concern over increasing growth has caused economic over-heating concerns across the European community where the Fund maintains its largest weighting. Many of the cyclical and commodity oriented companies have rallied on the back of the expectation of strong growth and inflation. While we do have exposure to these sectors, we do not believe this outperformance will continue. Financial companies have been the hardest hit as interest rate concerns have been a heavy burden on bond prices and fears of slower growth have tempered the performance of insurance companies and banks. This weakness has provided opportunities as we believe the markets have over-corrected for such fears. The Fund added some Brazilian and Mexican equities in February including Tele Norte, a fixed line telephone operator in Brazil and Telefonos de Mexico, Mexico's dominant phone company. These investments have experienced tremendous strength since their addition. We continue to monitor Latin America and Asia for value opportunities. Concerning the future outlook for international markets, we continue to see value across Europe and expect to remain overweighted here. Japan has rallied on hopes, not fundamentals, and we remain underweighted. We have added names in Japan such as Takefuji, a consumer finance company and FamilyMart, Japan's second largest convenient store operator. While we see some fundamentals turning in Japan, the changes are company specific. In our opinion, the macro picture remains mired in high unemployment, overvalued assets, and zero growth. /s/ Signature omitted ----------------------------------- Ned Dau Managing Director 10 Trust Shares [STI Classic International Equity Fund Trust Shares Line Graphic Omitted] - ------------------------------------------------------------------- Annualized Annualized Cumulative One Year 3 Year Inception Inception Return Return to Date to Date - ------------------------------------------------------------------- -7.43% 11.62% 14.12% 58.55% - ------------------------------------------------------------------- STI Classic International Equity Fund, Trust Shares MSCI EAFE Index, in U.S.$ Plot points are as follows: - ----------------------------------------------------------- STI Classic MSCI International Equity Fund Index Trust Shares in U.S.$ - ----------------------------------------------------------- 1/31/95 10,000 10,000 5/31/95 11,637 10,862 5/31/96 15,179 12,021 5/31/97 18,714 12,928 5/31/98 22,807 14,365 5/31/99 21,112 14,991 - ----------------------------------------------------------- Investor Shares [STI Classic International Equity Fund Investor Shares Line Graphic Omitted] - -------------------------------------------------------------------------------- Annualized Annualized Cumulative One Year 3 Year Inception Inception Return Return to Date to Date - -------------------------------------------------------------------------------- -7.82% 11.19% 12.62% 49.85% Without Load - -11.27% 9.79% 11.36% 44.18% With Load - -------------------------------------------------------------------------------- STI Classic International Equity Fund, Investor Shares MSCI EAFE Index, in U.S.$ Plot points are as follows: - ----------------------------------------------------------- STI Classic MSCI International Equity Fund Index Investor Shares in U.S.$ - ----------------------------------------------------------- 1/31/95 9,625 10,000 5/31/95 11,201 10,862 5/31/96 14,585 12,021 5/31/97 17,918 12,928 5/31/98 21,750 14,365 5/31/99 20,049 14,991 - ----------------------------------------------------------- Flex Shares [STI Classic International Equity Fund Flex Shares Line Graphic Omitted] - -------------------------------------------------------------------------------- Annualized Annualized Cumulative One Year 3 Year Inception Inception Return Return to Date to Date - -------------------------------------------------------------------------------- -8.48% 10.40% 11.89% 46.56% Without Load - -10.19% With Load - -------------------------------------------------------------------------------- STI Classic International Equity Fund, Flex Shares MSCI EAFE Index, in U.S.$ Plot points are as follows: - ----------------------------------------------------------- STI Classic MSCI International Equity Fund Index Flex Shares in U.S.$ - ----------------------------------------------------------- 1/31/95 10,000 10,000 5/31/95 11,637 10,862 5/31/96 15,139 12,021 5/31/97 18,467 12,928 5/31/98 22,260 14,365 5/31/99 20,372 14,991 - ----------------------------------------------------------- Past performance is no indication of future performance. The Funds' comparative benchmarks do not include the annual operating expenses incurred by the Fund. 11 STI Classic International Equity Index Fund ------------------------------------------- For the twelve months ending May 31, 1999 the Classic International Equity Index Fund (the "Fund") had a total return of 7.87%. This compares with the return of 4.2% for the EAFE-GDP Index, the Fund's benchmark. Investors will recall the strategy of the Fund is to closely match the EAFE-GDP return via a passive stock selection. The excess return over the benchmark for the twelve-month period was not due to a change in fund operating policies. Rather, we found in the severe global liquidity crisis cause by emerging markets concerns last summer, the Fund significantly outperformed the benchmark, particularly in August, 1998. This was because the Fund tends to hold the larger and more liquid stocks within the index. Because of a flight to quality reaction during the market downturn, larger stocks did considerably better. Looking at major market returns within the EAFE, the star performer was Japan, with a return of over 23% in U.S. dollar terms. The major European markets did not do nearly as well. Looking forward, here is how we assess the markets in broad-brush format. Economic trends in Europe are mixed, but interest rate cuts earlier this year and the decline of the Euro exchange rate should lend support to real GDP growth over the next year. The Anglo economies (Canada/UK/Australia) are also mixed, but basically pretty healthy. Finally, Japan has awakened. While Japan's GDP growth in Q1 was spectacular at 7.9%, it may have been a fluke in that individual components of demand such as retail sales and capital spending are still weak. Nonetheless, as we have been saying for awhile, we think the worst is over in Japan. Other Far East economies also appear to have bottomed. Beyond the near term, we would like to restate several major investment themes which will drive international equity stock performance for some time to come. First, the role of governments in economic activity is gradually declining and the private sector is gaining. The result is better utilization of resources. Second, inflation, despite recent small upticks, remains essentially benign on a global basis. This helps the valuation of financial assets. Third, the U. S. has been a world leader in restructuring of corporate assets, productivity, and technological investment. These forces are now being felt in Europe and even in Japan. We expect restructuring to continue for many years. Fourth, industry consolidation is now occurring on a global basis, with obvious benefits to equity holders. Finally, the U. S. market has substantially outperformed major international equity markets, especially over the last five years, and is highly valued vs. historical norms. Given these considerations, we continue to recommend international diversification as a prudent element in overall asset allocation for U. S. investors. Respectfully submitted, /s/ Signature omitted ----------------------------------- Robert J. Rhodes, CFA Portfolio Manager 12 Trust Shares [STI Classic International Equity Index Fund Trust Shares Line Graphic Omitted] - ------------------------------------------------------------------- Annualized Annualized Cumulative One Year 3 Year Inception Inception Return Return to Date to Date - ------------------------------------------------------------------- 7.87% 13.41% 10.39% 63.71% - ------------------------------------------------------------------- STI Classic International Equity Index Fund, Trust Shares MSCI EAFE-GDP Index Weighted, in U.S.$ (Price Return) Plot points are as follows: - ------------------------------------------------------------------------ STI Classic MSCI EAFE-GDP International Equity Index Index Weighted Fund Trust Shares in U.S.$ (Price Return) - ------------------------------------------------------------------------ 6/30/94 10,000 10,000 5/31/95 10,331 10,343 5/31/96 11,291 11,256 5/31/97 12,135 12,067 5/31/98 15,269 14,401 5/31/99 16,470 15,010 - ------------------------------------------------------------------------ Investor Shares [STI Classic International Equity Index Fund Investor Shares Line Graphic Omitted] - -------------------------------------------------------------------------------- Annualized Annualized Cumulative One Year 3 Year Inception Inception Return Return to Date to Date - -------------------------------------------------------------------------------- 7.33% 12.93% 9.92% 60.24% Without Load 3.34% 11.51% 9.08% 54.23% With Load - -------------------------------------------------------------------------------- STI Classic International Equity Index Fund, Investor Shares MSCI EAFE-GDP Index Weighted, in U.S.$ (Price Return) Plot points are as follows: - ------------------------------------------------------------------------ STI Classic MSCI EAFE-GDP International Equity Index Index Weighted Fund Investor Shares in U.S.$ (Price Return) - ------------------------------------------------------------------------ 6/30/94 9,625 10,000 5/31/95 9,904 10,343 5/31/96 10,786 11,256 5/31/97 11,554 12,067 5/31/98 14,471 14,401 5/31/99 15,532 15,010 - ------------------------------------------------------------------------ Flex Shares [STI Classic International Equity Index Fund Flex Shares Line Graphic Omitted] - -------------------------------------------------------------------------------- Annualized Annualized Cumulative One Year 3 Year Inception Inception Return Return to Date to Date - -------------------------------------------------------------------------------- 6.68% 12.22% 11.28% 52.83% Without Load 4.90% With Load - -------------------------------------------------------------------------------- STI Classic International Equity Index Fund, Flex Shares MSCI EAFE-GDP Index Weighted, in U.S.$ (Price Return) Plot points are as follows: - ------------------------------------------------------------------------ STI Classic MSCI EAFE-GDP International Equity Index Index Weighted Fund Flex Shares in U.S.$ (Price Return) - ------------------------------------------------------------------------ 6/30/95 10,000 10,000 5/31/96 10,911 11,020 5/31/97 11,610 11,814 5/31/98 14,455 14,099 5/31/99 15,421 14,696 - ------------------------------------------------------------------------ Past performance is no indication of future performance. The Funds' comparative benchmarks do not include the annual operating expenses incurred by the Fund. 13 STI Classic Life Vision Balanced Portfolio ------------------------------------------ The STI Classic Life Vision Balanced Portfolio (the "Portfolio") is a new member of the STI Classic family of mutual funds, created on May 24, 1999 through a merger with the CrestFunds Life Vision Balanced Portfolio. It principally invests in STI Classic equity mutual funds, but at least 25% of the portfolio will invest in STI Classic fixed-income portfolios. The Portfolio's remaining assets may be invested in shares of underlying STI Classic Funds that are money market funds or other short-term high quality investments. The past year was turbulent for the economy as well as the stock and bond markets, as policy-makers and investors successfully navigated potentially significant pitfalls. The current economic expansion reached its eighth anniversary, with continued low inflation. The STI Classic Life Vision Balanced Portfolio returned 6.47% during the fiscal year ended May 31, 1999. The beginning of the fiscal year, the second half of 1998, was strongly influenced by continuing reverberations of the 1997 Asian financial crisis. Diminishing profit expectations and political scandal here at home only added to investor uncertainty. The S&P 500 fell 10.3% during the third quarter on a price-only basis, though it lost as much as 19.3% between mid-July and the end of August. The Federal Reserve responded to the crisis last fall by cutting interest rates three times, and the major indexes completely recovered from the "bear" market within another six weeks. Large growth oriented equities performed extremely well while most value-oriented stocks struggled. By the first quarter of 1999, glimmers of economic hope began to appear for battered economies in the Pacific rim region as well as in Latin America. In addition, oil prices, which plummeted to under $11/barrel, jumped over 70% on news that world oil producers were acting together to reduce the global energy glut. By April, fears of future inflation helped push interest rates higher, and investors dramatically reduced their exposure to the high price/earnings growth stocks in favor of more cyclically and inflation sensitive value-oriented companies. The STI Classic Life Vision Balanced Portfolio stayed fully invested to maximize long term returns. The outlook for the U.S. and world economies remains favorable based on current reports, improving prospects for corporate earnings growth over the near term. While tight labor markets remain a concern for the inflation-wary Fed, structural imbalances and excess inventories appear to be lacking. This suggests that companies may be able to adjust price and production schedules relatively quickly in response to future changes in demand or Fed policy. The Portfolio will continue to adjust its mix of investments in this evolving environment in order to maximize returns to our shareholders while limiting volatility. Trusco Capital Management, Inc. 14 Trust Shares [STI Classic Life Vision Balanced Portfolio Trust Shares Line Graphic Omitted] - -------------------------------------------------------------------------------- Annualized Annualized Annualized Cumulative One Year 3 Year 5 Year Inception Inception Return Return* Return* to Date to Date - -------------------------------------------------------------------------------- 6.47% 11.67% 12.04% 10.59% 21.30% - -------------------------------------------------------------------------------- STI Classic Life Vision Balanced Portfolio, Trust Shares STI Classic Life Vision Balanced Portfolio Hybird Benchmark, Trust Shares S&P 500 Index Lehman Aggregate Bond Index Russell 2000 Index Salomon 3-Month T-Bill Plot points are as follows:
- -------------------------------------------------------------------------------------------------------- STI Classic STI Classic Life Vision Lehman Life Vision Balanced Portfolio S&P 500 Aggregate Russell Salomon Balanced Portfolio Hybrid Benchmark 500 Bond 2000 3-Month Trust Shares Trust Shares Index Index Index T-Bill - -------------------------------------------------------------------------------------------------------- 12/31/92 10,000 10,000 10,000 10,000 10,000 10,000 5/31/93 10,539 10,487 10,456 10,500 10,588 10,125 5/31/94 10,601 10,892 10,898 10,573 11,511 10,454 5/31/95 11,774 12,462 13,094 11,789 12,697 10,998 5/31/96 13,439 14,928 16,816 12,305 17,255 11,601 5/31/97 15,013 17,353 21,760 13,329 18,458 12,211 5/31/98 17,580 20,927 28,434 14,784 22,378 12,851 5/31/99 18,718 23,041 34,419 15,426 21,776 13,462 - --------------------------------------------------------------------------------------------------------
Past performance is no indication of future performance. *The performance quoted includes past performance of Crestar Bank's asset allocation program, adjusted for fees and expenses. The asset allocation program was not registered under the 1940 Act, and therefore was not subject to certain investment restrictions which may have adversely affected performance. As of May 24, 1999, the CrestFunds Life Vision Balanced Portfolio became the STI Classic Life Vision Balanced Portfolio. The Funds' comparative benchmarks do not include the annual operating expenses incurred by the Fund. 15 STI Classic Life Vision Growth and Income Portfolio --------------------------------------------------- The STI Classic Life Vision Growth and Income Portfolio (the "Portfolio") is a new member of the STI Classic family of mutual funds, created on May 24, 1999 through a merger with the CrestFunds Life Vision Growth and Income Portfolio. It invests at least 80% of the Portfolio's assets in STI Classic equity and fixed-income mutual funds. The Portfolio's remaining assets may be invested in shares of STI Classic Funds that invest in money market funds or other short-term high quality investments. The past year was turbulent for the economy as well as the stock and bond markets, as policy-makers and investors successfully navigated potentially significant pitfalls. The current economic expansion reached its eighth anniversary, with continued low inflation. The STI Classic Life Vision Growth and Income Portfolio returned 6.64% during the fiscal year ended May 31, 1999. The beginning of the fiscal year, the second half of 1998, was strongly influenced by continuing reverberations of the 1997 Asian financial crisis. Diminishing profit expectations and political scandal here at home only added to investor uncertainty. The S&P 500 fell 10.3% during the third quarter on a price-only basis, though it lost as much as 19.3% between mid-July and the end of August. The Federal Reserve responded to the crisis last fall by cutting interest rates three times, and the major indexes completely recovered from the "bear" market within another six weeks. Large growth oriented equities performed extremely well while most value-oriented stocks struggled. By the first quarter of 1999, glimmers of economic hope began to appear for battered economies in the Pacific rim region as well as in Latin America. In addition, oil prices, which plummeted to under $11/barrel, jumped over 70% on news that world oil producers were acting together to reduce the global energy glut. By April, fears of future inflation helped push interest rates higher, and investors dramatically reduced their exposure to the high price/earnings growth stocks in favor of more cyclically and inflation sensitive value-oriented companies. The STI Classic Life Vision Growth and Income Portfolio stayed fully invested to maximize long term returns. The outlook for the U.S. and world economies remains favorable based on current reports, improving prospects for corporate earnings growth over the near term. While tight labor markets remain a concern for the inflation-wary Fed, structural imbalances and excess inventories appear to be lacking. This suggests that companies may be able to adjust price and production schedules relatively quickly in response to future changes in demand or Fed policy. The Portfolio will continue to adjust its mix of investments in this evolving environment in order to maximize returns to our shareholders while limiting volatility. Trusco Capital Management, Inc. 16 Trust Shares [STI Classic Life Vision Growth & Income Portfolio Trust Shares Line Graphic Omitted] - -------------------------------------------------------------------------------- Annualized Annualized Annualized Cumulative One Year 3 Year 5 Year Inception Inception Return Return* Return* to Date to Date - -------------------------------------------------------------------------------- 6.64% 12.50% 13.30% 11.07% 22.31% - -------------------------------------------------------------------------------- STI Classic Life Vision Growth & Income Portfolio, Trust Shares STI Classic Life Vision Growth & Income Portfolio Hybrid Benchmark, Trust Shares S&P 500 Index Lehman Aggregate Bond Index Russell 2000 Index Salomon 3-Month T-Bill Plot points are as follows:
- ------------------------------------------------------------------------------------------------------------------------------------ STI Classic STI Classic Life Vision Life Vision Growth Lehman Growth & Income & Income Portfolio S&P 500 Aggregate Russell Salomon Portfolio Hybrid Benchmark 500 Bond 2000 3-Month Trust Shares Trust Shares Index Index Index T-Bill - ------------------------------------------------------------------------------------------------------------------------------------ 12/31/92 10,000 10,000 10,000 10,000 10,000 10,000 5/31/93 10,551 10,481 10,456 10,500 10,588 10,125 5/31/94 10,664 10,925 10,898 10,573 11,511 10,454 5/31/95 11,875 12,592 13,094 11,789 12,697 10,998 5/31/96 13,878 15,397 16,816 12,305 17,255 11,601 5/31/97 15,688 18,215 21,760 13,329 18,458 12,211 5/31/98 18,529 22,326 28,434 14,784 22,378 12,851 5/31/99 19,760 24,927 34,419 15,426 21,776 13,462 - ------------------------------------------------------------------------------------------------------------------------------------
Past performance is no indication of future performance. *The performance quoted includes past performance of Crestar Bank's asset allocation program, adjusted for fees and expenses. The asset allocation program was not registered under the 1940 Act, and therefore was not subject to certain investment restrictions which may have adversely affected performance. As of May 24, 1999, the CrestFunds Life Vision Growth and Income Portfolio became the STI Classic Life Vision Growth and Income Portfolio. The Funds' comparative benchmarks do not include the annual operating expenses incurred by the Fund. 17 STI Classic Life Vision Maximum Growth Portfolio ------------------------------------------------ The STI Classic Life Vision Maximum Growth Portfolio (the "Portfolio") is a new member of the STI Classic family of mutual funds, created on May 24, 1999 through a merger with the CrestFunds Life Vision Maximum Growth Portfolio. It invests at least 80% of the Portfolio's assets in STI Classic equity mutual funds. The Portfolio's remaining assets may be invested in shares of STI Classic Funds that invest in fixed-income and money market securities or other short-term high quality investments. The past year was turbulent for the economy as well as the stock and bond markets, as policy-makers and investors successfully navigated potentially significant pitfalls. The current economic expansion reached its eighth anniversary, with continued low inflation. The STI Classic Life Vision Maximum Growth Portfolio returned 7.22% during the fiscal year ended May 31, 1999. The beginning of the fiscal year, the second half of 1998, was strongly influenced by continuing reverberations of the 1997 Asian financial crisis. Diminishing profit expectations and political scandal here at home only added to investor uncertainty. The S&P 500 fell 10.3% during the third quarter on a price-only basis, though it lost as much as 19.3% between mid-July and the end of August. The Federal Reserve responded to the crisis last fall by cutting interest rates three times, and the major indexes completely recovered from the "bear" market within another six weeks. Large growth oriented equities performed extremely well while most value-oriented stocks struggled. By the first quarter of 1999, glimmers of economic hope began to appear for battered economies in the Pacific rim region as well as in Latin America. In addition, oil prices, which plummeted to under $11/barrel, jumped over 70% on news that world oil producers were acting together to reduce the global energy glut. By April, fears of future inflation helped push interest rates higher, and investors dramatically reduced their exposure to the high price/earnings growth stocks in favor of more cyclically and inflation sensitive value-oriented companies. The STI Classic Life Vision Maximum Growth Portfolio stayed fully invested to maximize long term returns. The outlook for the U.S. and world economies remains favorable based on current reports, improving prospects for corporate earnings growth over the near term. While tight labor markets remain a concern for the inflation-wary Fed, structural imbalances and excess inventories appear to be lacking. This suggests that companies may be able to adjust price and production schedules relatively quickly in response to future changes in demand or Fed policy. The Portfolio will continue to adjust its mix of investments in this evolving environment in order to maximize returns to our shareholders while limiting volatility. Trusco Capital Management, Inc. 18 Trust Shares [STI Classic Life Vision Growth & Income Portfolio Trust Shares Line Graphic Omitted] - -------------------------------------------------------------------------------- Annualized Annualized Annualized Cumulative One Year 3 Year 5 Year Inception Inception Return Return* Return* to Date to Date - -------------------------------------------------------------------------------- 7.22% 14.93% 15.78% 12.95% 26.30% - -------------------------------------------------------------------------------- STI Classic Life Vision Maximum Growth Portfolio, Trust Shares STI Classic Life Vision Growth Portfolio Hybrid Benchmark, Trust Shares S&P 500 Index Russell 2000 Index Salomon 3-Month T-Bill Plot points are as follows:
- ------------------------------------------------------------------------------------------------------------------- STI Classic STI Classic Life Vision Life Vision Maximum Maximum Growth Growth Portfolio S&P 500 Russell Salomon Portfolio Hybrid Benchmark 500 2000 3-Month Trust Shares Trust Shares Index Index T-Bill - ------------------------------------------------------------------------------------------------------------------- 12/31/92 10,000 10,000 10,000 10,000 10,000 5/31/93 10,697 10,465 10,456 10,588 10,125 5/31/94 10,840 11,044 10,898 11,511 10,454 5/31/95 12,108 12,772 13,094 12,697 10,998 5/31/96 14,858 16,375 16,816 17,255 11,601 5/31/97 17,216 19,660 21,760 18,458 12,211 5/31/98 21,038 24,634 28,434 22,378 12,851 5/31/99 22,557 27,654 34,419 21,776 13,462 - -------------------------------------------------------------------------------------------------------------------
Past performance is no indication of future performance. *The performance quoted includes past performance of Crestar Bank's asset allocation program, adjusted for fees and expenses. The asset allocation program was not registered under the 1940 Act, and therefore was not subject to certain investment restrictions which may have adversely affected performance. As of May 24, 1999, the CrestFunds Life Vision Maximum Growth Portfolio became the STI Classic Life Vision Maximum Growth Portfolio. The Funds' comparative benchmarks do not include the annual operating expenses incurred by the Fund. 19 STI Classic Mid-Cap Equity Fund ------------------------------- The STI Classic Mid-Cap Equity Fund (the "Fund") seeks capital appreciation by investing in the stocks of companies with a market capitalization between $500 million and $10 billion. Mid-cap securities with a strong growth history are the primary consideration for this investment philosophy. These companies are evaluated to their industry sector and the market in general. Each industry sector is considered in relation to the business cycle, and the Fund maintains large positions in the sectors which appear to perform best in the given cycle. Stocks that fall within favored sectors are analyzed based on fundamentals -- the quality of earnings, dependability of growth rates and relative attractiveness of price/earnings ratio. The Fund's return from June 1998 to May 1999 was 1.61% (Trust Shares). The Fund under performed its index, the S&P Mid-Cap 400 Index, by 10.34%. We believe the Fund's under performance was a result of its lack of exposure to companies with market capitalizations near the high end of the mid-cap range. Index performance has been driven by the larger capitalization names in the index as larger capitalization companies generally outperformed lower capitalization companies in all sectors of the U.S. equity markets. Over the last few months, mid-cap stocks have picked up their performance relative to large-cap stocks. Despite this, mid-cap stocks continue to sell at a discount to large-cap stocks. Given this valuation discount and the healthy state of the economy, a broadening of the market into mid-cap stocks would be perfectly natural. Our focus continues to be on the faster growing areas of the economy, including the technology, healthcare and consumer sectors. We also believe that there are select opportunities for growth in the energy sector, especially in the oil service industry. The top contributors to recent performance have been in the technology and oil service areas. /s/ Signature omitted -------------------------- John M. Hamlin Managing Director 20 Trust Shares [STI Classic Mid-Cap Equity Fund Trust Shares Line Graphic Omitted] - -------------------------------------------------------------------------------- Annualized Annualized Annualized Cumulative One Year 3 Year 5 Year Inception Inception Return Return Return to Date to Date - -------------------------------------------------------------------------------- 1.61% 12.03% 14.72% 13.46% 95.93% - -------------------------------------------------------------------------------- STI Classic Mid-Cap Equity Fund, Trust Shares S&P Mid-Cap 400 Index Plot points are as follows: - ------------------------------------------------------------- STI Classic S&P Mid-Cap Equity Fund Mid-Cap 400 Trust Shares Index - ------------------------------------------------------------- 2/28/94 10,000 10,000 5/31/94 9,735 9,516 5/31/95 10,958 10,803 5/31/96 13,756 13,873 5/31/97 15,714 16,397 5/31/98 19,035 21,294 5/31/99 19,342 23,837 - ------------------------------------------------------------- Investor Shares [STI Classic Mid-Cap Equity Fund Investor Shares Line Graphic Omitted]
- ------------------------------------------------------------------------------------------- Annualized Annualized Annualized Cumulative One Year 3 Year 5 Year Inception Inception Return Return Return to Date to Date - ------------------------------------------------------------------------------------------- 1.17% 11.53% 14.18% 12.90% 90.98% Without Load - -2.61% 10.11% 13.32% 12.10% 83.81% With Load - -------------------------------------------------------------------------------------------
STI Classic Mid-Cap Equity Fund, Investor Shares S&P Mid-Cap 400 Index Plot points are as follows: - ------------------------------------------------------------- STI Classic S&P Mid-Cap Equity Fund Mid-Cap 400 Investor Shares Index - ------------------------------------------------------------- 1/31/94 9,625 10,000 5/31/94 9,471 9,381 5/31/95 10,603 10,650 5/31/96 13,247 13,676 5/31/97 15,070 16,164 5/31/98 18,168 20,992 5/31/99 18,381 23,498 - ------------------------------------------------------------- Flex Shares [STI Classic Mid-Cap Equity Fund Flex Shares Line Graphic Omitted] - -------------------------------------------------------------------------------- Annualized Annualized Cumulative One Year 3 Year Inception Inception Return Return to Date to Date - -------------------------------------------------------------------------------- 0.56% 10.85% 13.79% 67.19% Without Load - -1.25% With Load - -------------------------------------------------------------------------------- STI Classic Mid-Cap Equity Fund, Flex Shares S&P Mid-Cap 400 Index Plot points are as follows: - ------------------------------------------------------------- STI Classic S&P Mid-Cap Equity Fund Mid-Cap 400 Flex Shares Index - ------------------------------------------------------------- 6/30/95 10,000 10,000 5/31/96 11,839 12,339 5/31/97 13,385 14,584 5/31/98 16,035 18,940 5/31/99 16,125 21,201 - ------------------------------------------------------------- Past performance is no indication of future performance. The Funds' comparative benchmarks do not include the annual operating expenses incurred by the Fund. 21 STI Classic Small Cap Equity Fund --------------------------------- The STI Classic Small Cap Equity Fund (the "Fund") seeks capital appreciation with a secondary goal of achieving current income by investing in the stocks of companies with a market capitalization of less than $1 billion. The Fund's return from June 1998 to May 1999 was -18.72% (Trust Shares). The Fund underperformed its index, the Frank Russell 2000 Value Index, which returned -9.52%. The May 1999 fiscal year was an extremely difficult year for small cap stocks and for value stocks. Small cap value stocks were the worst performing domestic equity class over this time period as the markets continued to favor large cap growth equities. The relative valuation between small cap value stocks and large cap stocks using such measures as price to earnings (P/E), price to book value, price to sales and price to cash flow reached an extreme level not seen in decades at the end of March 1999. Small cap value stocks were as cheap as they have been relative to large cap stocks looking back over many years. The extremely low relative valuation for small cap value stocks was caused by concerns of a U.S. economic slowdown caused by global economic slowing and turbulence in most foreign financial markets. Also an additional contributing factor was the dramatic flow of funds out of small cap equities favoring large cap U.S. equities. The Fund's performance, relative to the Frank Russell 2000 Value Index, was adversely affected by our underexposure to the financial industry (which benefited by lower interest rates), our overexposure to cyclical and commodity related companies (which under performed) and the Fund's investments in smaller companies, which didn't perform well compared to larger companies. Our investment discipline and valuations direct us to the companies we invest in and we are confident, over the longer term, of the merits of these investments. We have managed the Fund over the past 12 months using the same basic investment strategies, which have been successful over time. Our focus has been on undervalued small cap companies that have significant upside return potential with catalyst events over the next 18 - 24 months to trigger an upward move in their share price. We also require dividend income to pay us as we wait to provide reduced volatility in the portfolio. We have had little investment participation in areas such as the internet, as the valuations have been too rich for our investment discipline and the sector has all of the indications of a speculative "bubble". We prefer to stick with what we know and make valuation based investment decisions. On a bright note, fiscal year 2000 is starting off with much better performance. Since the end of March 1999, small cap value stocks and the Fund have had extremely good investment returns as they have rebounded from their extremely low valuations relative to large cap stocks. Small cap value stocks still look very cheap relative to large cap stocks and their absolute valuations are just slightly above the long-term valuations seen for the asset class, yet still are much cheaper than large cap stocks absolute valuations. Long-term, small cap value stocks and the Fund have delivered very good risk adjusted returns and we firmly believe this will continue looking out into the future. /s/ Signature omitted -------------------------- Brett L. Barner, CFA Managing Director 22 Trust Shares [STI Classic Small Cap Equity Fund Trust Shares Line Graphic Omitted] - -------------------------------------------------------------------------------- Annualized Annualized Cumulative One Year 3 Year Inception Inception Return Return to Date to Date - -------------------------------------------------------------------------------- - -18.72% 10.06% 4.77% 11.47% - -------------------------------------------------------------------------------- STI Classic Small Cap Equity Fund, Trust Shares Frank Russell 2000 Index Plot points are as follows: - -------------------------------------------------------------- STI Classic Frank Russell Small Cap Equity Fund 2000 Trust Shares Index - -------------------------------------------------------------- 8/31/94 10,000 10,000 5/31/95 11,432 10,638 5/31/96 15,171 14,457 5/31/97 20,138 15,465 5/31/98 24,888 18,749 5/31/99 20,229 18,245 - -------------------------------------------------------------- Flex Shares [STI Classic Small Cap Equity Fund Flex Shares Line Graphic Omitted] - -------------------------------------------------------------------------------- Annualized Annualized Cumulative One Year 3 Year Inception Inception Return Return to Date to Date - -------------------------------------------------------------------------------- - -19.52% 9.32% -2.09% -4.10% Without Load - -21.03% With Load - -------------------------------------------------------------------------------- STI Classic Small Cap Equity Fund, Flex Shares Frank Russell 2000 Index Plot points are as follows: - --------------------------------------------------------------- STI Classic Frank Russell Small Cap Equity Fund 2000 Flex Shares Index - --------------------------------------------------------------- 8/31/94 10,000 10,000 5/31/95 11,432 10,638 5/31/96 15,171 14,457 5/31/97 20,138 15,465 5/31/98 24,627 18,749 5/31/99 19,819 18,245 Past performance is no indication of future performance. *The performance quoted includes past performance of the Common Trust Fund managed by STI Capital Management, N.A. adjusted for fees and expenses. The Common Trust Fund was not registered under the 1940 Act and therefore was not subject to certain investment restrictions which may have adversely affected performance. The Funds' comparative benchmarks do not include the annual operating expenses incurred by the Fund. 23 STI Classic Small Cap Growth Stock Fund --------------------------------------- The objective of the STI Classic Small Cap Growth Stock Fund (the "Fund") is to provide long-term capital appreciation by investing in smaller companies, domiciled primarily in the U.S., with market capitalizations ranging from $50 million to $3 billion. The philosophy of the Fund is that a portfolio of small capitalization companies with positive earnings characteristics and reasonable valuation will provide superior returns over time. The Fund invests in stocks of companies that are currently demonstrating strong earnings trends, characterized by solid historical earnings growth, high earnings and sales growth momentum, and positive earnings estimate revisions and earnings surprises. However, we try not to pay huge premiums for these companies. Consequently, we identify those companies that are reasonably valued relative to their earnings trends and relative to our universe of companies. In addition, we look for companies that have a history of generating high returns on invested capital and/or are demonstrating improving returns. The investment process of the Fund features a two-tiered strategy that includes a quantitative methodology to identify those companies with the best combination of the aforementioned characteristics and a qualitative overlay that involves basic fundamental analysis of each company. Our investment team looks at each company to understand the company's basic business model and competitive environment surrounding the company. In addition, we dig into the financials of each company, analyzing the income statement and balance sheet in order to identify any accounting irregularities, understand the capital structure of the company, how the company has grown in the past, and how it intends to fund its growth in the future. The Fund features a very disciplined approach for both the buying and selling of stocks. Furthermore, we exercise portfolio management techniques that are geared toward risk aversion, unlike most other aggressive small cap growth portfolios. The Fund equal-weights the portfolio among the top 15% to 20% of stocks in our investment universe (approximately 150-160 companies). Thus, we maintain a very diversified portfolio taking on very little company specific risk. In addition, we maintain controlled sector weightings to keep the portfolio from becoming over-concentrated in one particular economic sector. We are confident that our process will provide excellent risk-adjusted returns over time relative to the S&P Small Cap 600 Index and relative to other small cap mutual funds. We are very pleased with the Fund's results since inception on October 8, 1998 and feel very comfortable with how the portfolio is currently positioned. Since late March 1999, the broadening of the market has brought about a resurgence in small cap stock returns. Should this trend continue, this will be an excellent year for the STI Classic Small Cap Growth Stock Fund. /s/ Signature omitted ------------------------------------ Mark D. Garfinkel, CFA Vice President and Portfolio Manager 24 Trust Shares* [STI Classic Small Cap Growth Stock Fund Trust Shares Line Graphic Omitted] - ----------- Cumulative Inception to Date - ----------- 45.70% - ----------- STI Classic Small Cap Growth Stock Fund, Trust Shares S&P Small Cap 500 Index Plot points are as follows: - ------------------------------------------------------------- STI Classic S&P Small Cap Growth Stock Small Cap 600 Fund, Trust Shares Index - ------------------------------------------------------------- 10/31/98 10,000 10,000 5/31/99 12,070 11,168 - ------------------------------------------------------------- Flex Shares* [STI Classic Small Cap Growth Stock Fund Flex Shares Line Graphic Omitted] - ----------------------------- Cumulative Inception to Date - ----------------------------- 44.78% Without Load 42.78% With Load - ----------------------------- Plot points are as follows: - ------------------------------------------------------------- STI Classic S&P Small Cap Growth Stock Small Cap 600 Fund, Flex Shares Index - ------------------------------------------------------------- 10/31/98 10,000 10,000 5/31/99 11,764 11,168 - ------------------------------------------------------------- *Commenced operations on October 8, 1998. Past performance is no indication of future performance. The Funds' comparative benchmarks do not include the annual operating expenses incurred by the Fund. 25 STI Classic Sunbelt Equity Fund ------------------------------- The objective of the STI Classic Sunbelt Equity Fund (the "Fund") is to provide capital appreciation by investing in U.S. companies located in the Sunbelt region. The Fund's philosophy is centered on the belief that a portfolio of companies with positive earnings trends will generate above average returns over time. This focus on favorable earnings characteristics has been and remains the Fund's cornerstone. The Fund invests in companies that are headquartered or conduct the majority of their business in the twelve state Sunbelt region which runs from Virginia down to Florida and over to Texas. The favorable economic and demographic trends in the Sunbelt have resulted in a vibrant and growing business climate. Such an environment leads to above average investment opportunities. Key trends in the Sunbelt are low cost levels, an excellent transportation system, expansion in personal income and growth in population. The Fund's investment universe consists of approximately 2,300 public companies, of which roughly 300 are covered extensively by our nine dedicated research analysts. Before a company can be considered for investment, it must satisfy initial screening criteria which include: five year operating history, market capitalization of at least $50 million, monthly trading volume of $20 million, management continuity and strong fundamental history. Once the initial screening is complete the stocks chosen for purchase generally have strong or improving growth rates, a demonstrated ability to meet expectations, and rising estimates. Over time, the companies owned in the Fund have shown above average earnings growth rates. The above average growth rates have continued through the Fund's 1999 fiscal year and are a direct result of the Fund's bottom up orientation. Yet the Fund's performance did not reflect these favorable earnings trends and fundamentals. The reason is that the Sunbelt investment process of owning companies which have a solid operating history and earnings growth excluded speculative internet companies which were rewarded in the market place to the detriment of more established profitable companies. Furthermore, investors continued to favor large liquid common stocks. The Internet speculative bubble looks as if it is starting to deflate and a broader shift to secondary stocks has begun. /s/ Signature omitted ------------------------------------ James Foster Vice President 26 Trust Shares [STI Classic Sunbelt Equity Fund Trust Shares Line Graphic Omitted] - -------------------------------------------------------------------------------- Annualized Annualized Annualized Annualized Cumulative One Year 3 Year 5 Year 10 Year Inception Inception Return Return Return Return to Date to Date - -------------------------------------------------------------------------------- -20.46% -0.01% 8.25% 12.94% 7.00% 44.18% - -------------------------------------------------------------------------------- STI Classic Sunbelt Equity Fund, Trust Shares S&P 500 Small Cap Index Frank Russell 2000 Growth Index Plot points are as follows: - -------------------------------------------------------------------------------- STI Classic S&P 600 Frank Russell Sunbelt Equity Fund Small Cap 2000 Growth Trust Shares Index Index - -------------------------------------------------------------------------------- 5/31/89 10,000 10,000 10,000 5/31/90 12,131 9,823 10,461 5/31/91 14,122 10,064 11,356 5/31/92 16,089 11,725 12,259 5/31/93 20,328 14,397 13,792 5/31/94 22,719 15,329 14,570 5/31/95 23,584 16,828 16,417 5/31/96 33,771 23,295 23,739 5/31/97 34,270 26,086 22,457 5/31/98 42,447 32,417 26,017 5/31/99 33,763 30,057 27,039 - -------------------------------------------------------------------------------- Investor Shares [STI Classic Sunbelt Equity Fund Investor Shares Line Graphic Omitted]
- ---------------------------------------------------------------------------------------------- Annualized Annualized Annualized Annualized Cumulative One Year 3 Year 5 Year 10 Year Inception Inception Return Return Return Return to Date to Date - ---------------------------------------------------------------------------------------------- -20.82% -0.46% 7.73% 12.35% 6.50% 40.61% Without Load -23.81% -1.72% 6.90% 11.92% 5.75% 35.33% With Load - ----------------------------------------------------------------------------------------------
STI Classic Sunbelt Equity Fund, Flex Shares S&P 500 Small Cap Index Frank Russell 2000 Growth Index Plot points are as follows: - -------------------------------------------------------------------------------- STI Classic S&P 600 Frank Russell Sunbelt Equity Fund Small Cap 2000 Growth Investor Shares Index Index - -------------------------------------------------------------------------------- 5/31/89 9,625 10,000 10,000 5/31/90 11,620 9,823 10,461 5/31/91 13,440 10,064 11,356 5/31/92 15,215 11,725 12,259 5/31/93 19,118 14,397 13,792 5/31/94 21,244 15,329 14,570 5/31/95 21,924 16,828 16,417 5/31/96 31,259 23,295 23,739 5/31/97 31,587 26,086 22,457 5/31/98 38,931 32,417 26,017 5/31/99 30,826 30,057 27,039 - -------------------------------------------------------------------------------- Flex Shares [STI Classic Sunbelt Equity Fund Flex Shares Line Graphic Omitted]
- ---------------------------------------------------------------------------------------------- Annualized Annualized Annualized Annualized Cumulative One Year 3 Year 5 Year 10 Year Inception Inception Return Return Return Return to Date to Date - ---------------------------------------------------------------------------------------------- -21.36% -1.09% 7.33% 12.46% 7.82% 34.92% Without Load -22.80% With Load - ----------------------------------------------------------------------------------------------
STI Classic Sunbelt Equity Fund, Flex Shares S&P 500 Small Cap Index Frank Russell 2000 Growth Index Plot points are as follows: - -------------------------------------------------------------------------------- STI Classic S&P 600 Frank Russell Sunbelt Equity Fund Small Cap 2000 Growth Flex Shares Index Index - -------------------------------------------------------------------------------- 5/31/89 10,000 10,000 10,000 5/31/90 12,131 9,823 10,461 5/31/91 14,122 10,064 11,356 5/31/92 16,089 11,725 12,259 5/31/93 20,328 14,397 13,792 5/31/94 22,719 15,329 14,570 5/31/95 23,584 16,828 16,417 5/31/96 33,438 23,295 23,739 5/31/97 33,592 26,086 22,457 5/31/98 41,143 32,417 26,017 5/31/99 32,355 30,057 27,039 - -------------------------------------------------------------------------------- Past performance is no indication of future performance. *The performance quoted includes past performance of the Common Trust Fund managed by Trusco Capital Management adjusted for fees and expenses. The Common Trust Fund was not registered under the 1940 Act and therefore was not subject to certain investment restrictions which may have adversely affected performance. The Funds' comparative benchmarks do not include the annual operating expenses incurred by the Fund. 27 STI Classic Tax Sensitive Growth Stock Fund ------------------------------------------- The STI Classic Tax Sensitive Growth Stock Fund seeks to provide long-term growth of capital by investing in a diversified portfolio of common stocks of financially strong U.S. growth companies across all industry sectors with a large capitalization emphasis. Our value-added approach also seeks to minimize taxable gain distributions. We use a four dimensional investment philosophy. The first dimension is diversified holdings. Secondly, we select, in our opinion, the greatest companies in each industry sector. Thirdly, while we are predominately a large capitalization fund, we do have the flexibility to purchase small and mid capitalization stocks. Lastly, we require a high standard of financial strength. In our opinion, this philosophy has the potential to maximize growth and minimize taxable distributions. We believe that it is not what you make; it is what you keep after taxes that counts. /s/ Signature omitted ------------------------------------ Jonathan Mote, CFA, CFP Vice President 28 Trust Shares(1) [STI Classic Tax Sensitive Growth Stock Fund Trust Shares Line Graphic Omitted] - ----------------------------------------------- Annualized Cumulative One Year 3 Year Inception Return* Return* to Date - ----------------------------------------------- 29.41% 27.66% 17.04% - ----------------------------------------------- STI Classic Tax Sensitive Growth Stock Fund, Trust Shares S&P 500 Index Plot points are as follows: - --------------------------------------------------------- STI Classic Tax Sensitive S&P Growth Stock Fund 500 Trust Shares Index - --------------------------------------------------------- 12/31/95 10,000 10,000 5/31/96 10,767 10,966 5/31/97 13,971 14,190 5/31/98 17,311 18,542 5/31/99 22,402 22,445 - --------------------------------------------------------- Flex Shares(2) [STI Classic Tax Sensitive Growth Stock Fund Flex Shares Line Graphic Omitted] - -------------------------------------------------------------------- Annualized Cumulative One Year 3 Year Inception Return* Return* to Date - -------------------------------------------------------------------- 28.87% 27.48% 16.97% Without Load 26.87% With Load - -------------------------------------------------------------------- STI Classic Tax Sensitive Growth Stock Fund, Trust Shares S&P 500 Index Plot points are as follows: - --------------------------------------------------------- STI Classic Tax Sensitive S&P Growth Stock Fund 500 Flex Shares Index - --------------------------------------------------------- 12/31/95 10,000 10,000 5/31/96 10,767 10,966 5/31/97 13,971 14,190 5/31/98 17,311 18,542 5/31/99 22,309 22,445 - --------------------------------------------------------- (1) Commenced operations on December 11, 1998. (2) Commenced operations on December 15, 1998. *The performance quoted includes past performance of the Common Trust Fund managed by Trusco Capital Management adjusted for fees and expenses. The Common Trust Fund was not registered under the 1940 Act and therefore was not subject to certain investment restrictions which may have adversely affected performance. The Funds' comparative benchmarks do not include the annual operating expenses incurred by the Fund. 29 STI Classic Value Income Stock Fund ----------------------------------- The STI Classic Value Income Stock Fund (the "Fund") seeks to provide current income with the secondary goal of achieving capital appreciation by investing primarily in equity securities. The Fund's investment philosophy is a very structured methodical approach to purchasing stocks. The bottom-up approach has three key factors to consider in all investment decisions -- minimum dividend yield criteria, low historical relative valuation and a fundamental catalyst which could upwardly value the individual security. Our process seeks high-dividend paying stocks that are trading at the lower end of their historical valuation ranges. These companies are in the midst of fundamental change that we expect will reignite investor interest in the near-term. They tend to exhibit value characteristics such as low price-to-earnings ratios and have lower volatility. As a result, the Fund benefits when the market becomes less exuberant and more value oriented. The Fund's return from June 1998 to May 1999 was 11.13% (Trust Shares). The Fund under performed the S&P/Barra Value Index by 1.96%. Growth has had a tremendous advantage versus value in the marketplace over the last four years, as investors around the world buy stocks that they know -- typically large cap growth such as General Electric and Microsoft. However, given the currently high valuations for growth stocks in general and the apparent stabilization in the global economy, value stocks could be poised for a period of out performance. /s/ Signature omitted ------------------------------------ Mills A. Riddick, CFA Managing Director 30 Trust Shares [STI Classic Value Income Stock Fund Trust Shares Line Graphic Omitted] - -------------------------------------------------------------------------------- Annualized Annualized Annualized Cumulative One Year 3 Year 5 Year Inception Inception Return Return Return to Date to Date - -------------------------------------------------------------------------------- 11.13% 18.68% 20.55% 18.25% 187.49% - -------------------------------------------------------------------------------- STI Classic Value Income Stock Fund, Trust Shares S&P/BARRA Value Index Lipper Equity Income Funds Average Plot points are as follows: - -------------------------------------------------------------------------------- STI Classic S&P/BARRA Lipper Equity Value Income Stock Fund Value Income Funds Trust Shares Index Average - -------------------------------------------------------------------------------- 10/31/89 10,000 10,000 10,000 5/31/90 10,359 10,463 10,261 5/31/91 12,434 11,432 11,120 5/31/92 15,195 12,449 12,475 5/31/93 16,778 14,438 14,166 5/31/94 18,453 15,512 14,873 5/31/95 21,970 18,160 16,844 5/31/96 28,102 22,946 20,755 5/31/97 34,335 28,788 25,450 5/31/98 42,266 37,113 31,753 5/31/99 46,970 41,971 34,478 - -------------------------------------------------------------------------------- Investor Shares [STI Classic Value Income Stock Fund Investor Shares Line Graphic Omitted] - -------------------------------------------------------------------------------- Annualized Annualized Annualized Cumulative One Year 3 Year 5 Year Inception Inception Return Return Return to Date to Date - -------------------------------------------------------------------------------- 10.71% 18.24% 20.11% 18.34% 188.22% Without Load 6.56% 16.75% 19.20% 17.62% 177.38% With Load - -------------------------------------------------------------------------------- STI Classic Value Income Stock Fund, Investor Shares S&P/BARRA Value Index Lipper Equity Income Funds Average Plot points are as follows: - -------------------------------------------------------------------------------- STI Classic S&P/BARRA Lipper Equity Value Income Stock Fund Value Income Funds Investor Shares Index Average - -------------------------------------------------------------------------------- 10/31/89 9,625 10,000 10,000 5/31/90 9,970 10,463 10,261 5/31/91 11,967 11,432 11,120 5/31/92 14,625 12,449 12,475 5/31/93 16,142 14,438 14,166 5/31/94 17,641 15,512 14,873 5/31/95 20,942 18,160 16,844 5/31/96 26,678 22,946 20,755 5/31/97 32,465 28,788 25,450 5/31/98 39,837 37,113 31,753 5/31/99 44,104 41,971 34,478 - -------------------------------------------------------------------------------- Flex Shares [STI Classic Value Income Stock Fund Flex Shares Line Graphic Omitted] - -------------------------------------------------------------------------------- Annualized Annualized Annualized Cumulative One Year 3 Year 3 Year Inception Inception Return Return Return to Date to Date - -------------------------------------------------------------------------------- 9.91% 17.40% 19.50% 19.67% 104.71% Without Load 8.06% With Load - -------------------------------------------------------------------------------- STI Classic Value Income Stock Fund, Flex Shares S&P/BARRA Value Index Upper Equity Income Funds Average Plot points are as follows: - -------------------------------------------------------------------------------- STI Classic S&P/BARRA Lipper Equity Value Income Stock Fund Value Income Funds Flex Shares Index Average - -------------------------------------------------------------------------------- 10/31/89 10,000 10,000 10,000 5/31/90 10,359 10,463 10,261 5/31/91 12,434 11,432 11,120 5/31/92 15,195 12,449 12,475 5/31/93 16,778 14,438 14,166 5/31/94 18,453 15,512 14,873 5/31/95 21,970 18,160 16,844 5/31/96 27,796 22,946 20,755 5/31/97 33,609 28,788 25,450 5/31/98 40,922 37,113 31,753 5/31/99 44,977 41,971 34,478 - -------------------------------------------------------------------------------- Past performance is no indication of future performance. *The performance quoted includes past performance of the Common Trust Fund managed by STI Capital Management, N.A. adjusted for fees and expenses. The Common Trust Fund was not registered under the 1940 Act and therefore was not subject to certain investment restrictions which may have adversely affected performance. The Funds' comparative benchmarks do not include the annual operating expenses incurred by the Fund. 31 STATEMENT OF NET ASSETS - -------------------------------------------------------------------------------- STI CLASSIC EQUITY FUNDS May 31, 1999 Balanced Fund - -------------------------------------------------------------------------------- Shares Value (000) - -------------------------------------------------------------------------------- Common Stocks (56.1%) Basic Materials (1.2%) Air Products & Chemicals 75,200 $ 3,083 Morton International 22,200 866 -------- 3,949 -------- Capital Goods (6.8%) Allied Waste Industries* 36,100 672 Browning Ferris Industries 3,000 124 General Electric 75,500 7,677 Honeywell 20,800 1,968 Lockheed Martin 14,700 594 Maytag 6,200 437 Raytheon, Cl B 4,100 279 Republic Services, Cl A* 39,800 935 Tenneco 3,000 70 Textron 7,300 650 Tyco International 51,659 4,514 United Technologies 34,000 2,110 Waste Management* 62,161 3,287 -------- 23,317 -------- Communication Services (2.4%) Airtouch Communications* 4,900 492 AT&T 26,284 1,459 Centurytel 43,100 1,651 Fox Entertainment Group, Cl A* 16,900 431 GTE 24,600 1,551 MCI WorldCom* 19,543 1,688 Nextel Communications, Cl A* 500 18 Nokia, Cl A ADR 12,200 866 -------- 8,156 -------- Consumer Cyclicals (11.9%) Bed Bath & Beyond* 500 17 Carnival 60,600 2,485 Cendant* 88,358 1,629 Comcast* 5,400 477 Costco* 45,700 3,313 CVS 63,400 2,916 Dayton Hudson 19,900 1,254 Dollar General 1,625 43 Federated Department Stores* 8,900 485 Gannett 20,800 1,503 Hasbro 47,200 1,351 Home Depot 7,800 444 Interpublic Group 12,500 947 Kroger* 53,800 3,151 Lear* 27,900 1,372 Lowe's Companies 83,500 4,337 Masco 106,300 3,036 Mattel 51,900 1,372 - -------------------------------------------------------------------------------- Shares Value (000) - -------------------------------------------------------------------------------- Consumer Cyclicals--continued New York Times, Cl A 22,200 $ 758 Office Depot* 141,350 2,951 Promus Hotel* 11,700 292 Royal Caribbean Cruises 2,700 106 Saks* 43,300 1,196 SPX* 9,100 706 Starwood Hotels and Resorts* 17,655 578 Tandy 35,000 2,887 United Rentals* 25,400 762 Young & Rubicam* 4,300 162 -------- 40,530 -------- Consumer Staples (5.6%) American Stores 15,200 502 Anheuser Busch 6,500 475 Avon Products 25,600 1,266 Clorox 12,500 1,262 Coca Cola 11,200 406 ConAgra 16,600 433 Flowers Industries 18,500 412 Fort James 19,200 703 Gillette 1,200 61 McDonald's 13,900 535 Newell Rubbermaid 3,200 130 Pepsi Bottling Group* 25,700 596 PepsiCo 42,800 1,533 Philip Morris 12,600 486 Procter & Gamble 10,200 952 Ralston Purina 45,500 1,240 Rite Aid 77,700 1,942 Safeway* 29,500 1,372 Sara Lee 75,400 1,810 Seagram 4,400 229 Unilever NV* 4,721 308 US Foodservice* 31,380 1,396 Viacom, Cl B* 23,200 893 -------- 18,942 -------- Energy (1.9%) Anadarko Petroleum 13,400 502 Atlantic Richfield 8,700 728 Halliburton 20,900 865 Mobil 6,400 648 Niagara Mohawk Holdings* 17,700 263 Texaco 31,400 2,057 Union Pacific Resources Group 20,822 290 Unocal 25,100 998 -------- 6,351 -------- 32 - -------------------------------------------------------------------------------- - -------------------------------------------------------------------------------- Shares Value (000) - -------------------------------------------------------------------------------- Financials (8.0%) Ace Ltd 21,700 $ 662 Allstate 11,800 430 American International Group 17,883 2,044 Associates First Capital 25,500 1,046 Bank of America 28,831 1,865 Bank of New York 11,900 425 Bank One 26,789 1,515 Bank United, Cl A 11,300 468 BankBoston 27,600 1,308 Citigroup 5,200 345 CMAC Investment 4,000 202 Compass Bancshares 18,550 549 Conseco 46,000 1,406 Cullen/Frost Bankers 1,400 79 Fannie Mae 1,500 102 First Security 27,600 523 Freddie Mac 14,300 834 Hartford Life, Cl A 2,900 138 Household International 41,699 1,809 Mellon Bank 74,900 2,673 Merchantile Bancorp 3,200 187 Merrill Lynch 10,000 840 North Fork Bancorporation 20,300 433 PNC Bank 29,100 1,666 Providian Financial 3,900 374 Torchmark 42,700 1,425 U.S. Bancorp 22,500 731 UnionBanCal 14,900 551 Unum 18,400 990 Washington Mutual 39,676 1,515 -------- 27,135 -------- Health Care (7.2%) Abbott Laboratories 52,900 2,390 Alza, Cl A* 24,900 889 American Home Products 24,700 1,423 Baxter International 30,400 1,963 Becton Dickinson 25,000 969 Bristol-Myers Squibb 41,900 2,875 Cardinal Health 26,265 1,586 Eli Lilly 20,000 1,429 Forest Laboratories* 13,100 624 Health Management Associates, Cl A* 20,100 261 Healthsouth* 47,528 636 Johnson & Johnson 3,400 315 Medtronic 11,294 802 Merck 56,000 3,780 Schering Plough 13,300 599 Tenet Healthcare* 37,000 907 - -------------------------------------------------------------------------------- Shares Value (000) - -------------------------------------------------------------------------------- Health Care--continued Warner Lambert 47,700 $ 2,957 Watson Pharmaceuticals* 7,100 272 -------- 24,677 -------- Technology (10.5%) 3Com* 9,400 257 Analog Devices* 21,500 826 Ascend Communications* 19,800 1,835 BMC Software* 4,200 208 Ceridian* 70,600 2,330 Cisco Systems* 37,300 4,066 Compaq Computer 20,900 495 Computer Sciences* 13,000 841 EMC* 21,900 2,182 Hewlett Packard 21,700 2,047 IBM 58,200 6,769 Intel 26,900 1,454 Lucent Technologies 6,916 393 Microsoft* 63,100 5,091 Networks Associates* 36,386 534 Nortel Networks 17,700 1,328 Sun Microsystems* 29,100 1,739 Texas Instruments 12,800 1,400 Xerox 37,200 2,090 -------- 35,885 -------- Transportation (0.6%) AMR* 4,300 280 Burlington Northern Santa Fe 23,700 735 Delta Air Lines 13,100 752 Trans World Air* 4,100 146 -------- 1,913 -------- Total Common Stocks (Cost $152,557) 190,855 -------- Preferred Stock (0.1%) Finance (0.1%) Conseco Financial Trust, CV to 0.9363 Shares* 10,000 409 -------- Total Preferred Stock (Cost $500) 409 -------- 33 STATEMENT OF NET ASSETS - -------------------------------------------------------------------------------- STI CLASSIC EQUITY FUNDS May 31, 1999 Balanced Fund--concluded - -------------------------------------------------------------------------------- Face Amount (000) Value (000) - -------------------------------------------------------------------------------- Corporate Obligations (15.6%) Finance (9.6%) Conseco 6.800%, 06/15/05 $ 1,800 $ 1,683 6.400%, 06/15/11 1,350 1,323 Countrywide Home Loan, Ser F, MTN 6.510%, 02/11/05 2,300 2,228 Donaldson Lufkin 5.875%, 04/01/02 2,000 1,968 Donaldson Lufkin, MTN 6.150%, 05/04/04 1,250 1,213 Finova Capital 6.250%, 11/01/02 1,200 1,187 6.110%, 02/18/03 2,250 2,213 6.750%, 03/09/09 850 831 Ford Motor Credit 6.500%, 02/28/02 2,100 2,113 Goldman Sachs 6.650%, 05/15/09 1,250 1,231 Great Western Financial 8.600%, 02/01/02 800 830 Household Finance 5.875%, 02/01/09 2,300 2,136 Merrill Lynch, MTN 5.710%, 01/15/02 3,000 2,963 Paine Webber Group, MTN 6.020%, 04/22/02 3,000 2,933 Provident 7.000%, 07/15/18 2,550 2,483 Reliastar Financial 6.500%, 11/15/08 2,000 1,910 Salomon 7.300%, 05/15/02 1,750 1,794 Salomon Smith Barney 6.250%, 01/15/05 1,750 1,671 -------- 32,710 -------- Industrial (6.0%) AT&T 6.000%, 03/15/09 2,250 2,146 6.500%, 03/15/29 1,250 1,161 AT&T Capital, MTN 6.890%, 01/25/02 2,750 2,753 Bausch & Lomb 6.150%, 08/01/01 1,200 1,194 6.750%, 12/15/04 1,000 979 Dillards 6.430%, 08/01/04 2,700 2,612 - -------------------------------------------------------------------------------- Face Amount (000) Value (000) - -------------------------------------------------------------------------------- Industrial--Continued Ikon Capital, MTN 6.730%, 06/15/01 $ 1,000 $ 988 Philip Morris 7.250%, 09/15/01 2,100 2,142 7.500%, 04/01/04 1,000 1,031 Sprint Capital 5.875%, 05/01/04 2,200 2,131 6.375%, 05/01/09 1,350 1,289 6.900%, 05/01/19 2,000 1,913 -------- 20,339 -------- Total Corporate Obligations (Cost $54,249) 53,049 -------- Convertible Bonds (0.3%) Network Associates, CV to 8.5380 Shares, Callable 02/13/03 @ 49.45 (A) 0.000%, 02/13/18 1,000 305 WMX Technologies, CV to 18.9065 Shares, Callable 03/15/00 @ 84.30 2.000%, 01/24/05 700 751 -------- Total Convertible Bonds (Cost $1,188) 1,056 -------- U.S. Agency Mortgage-Backed Obligation (2.7%) GNMA 8.000%, 12/15/22 8,704 9,049 -------- Total U.S. Agency Mortgage-Backed Obligation (Cost $9,047) 9,049 -------- U.S. Treasury Obligations (14.4%) U.S. Treasury Bonds 7.500%, 11/15/16 8,000 9,159 8.125%, 08/15/19 16,175 19,872 U.S. Treasury Notes 5.750%, 10/31/00 8,250 8,298 5.000%, 04/30/01 2,250 2,234 6.125%, 08/15/07 9,100 9,278 -------- Total U.S. Treasury Obligations (Cost $48,155) 48,841 -------- 34 - -------------------------------------------------------------------------------- - -------------------------------------------------------------------------------- Face Amount (000) Value (000) - -------------------------------------------------------------------------------- Repurchase Agreement (10.7%) Greenwich 4.83%, dated 05/28/99, matures 06/01/99, repurchase price $36,557,959 (collateralized by various FNMA obligations: total market value $37,269,725) (D) $36,538 $ 36,538 -------- Total Repurchase Agreement (Cost $36,538) 36,538 -------- Total Investments (99.9%) (Cost $302,234) 339,797 -------- Other Assets and Liabilities, Net (0.1%) 443 -------- Net Assets: Fund shares of the Trust Class (unlimited authorization -- no par value) based on 18,984,001 outstanding shares of beneficial interest 212,913 Fund shares of the Investor Class (unlimited authorization -- no par value) based on 1,123,159 outstanding shares of beneficial interest 13,301 Fund shares of the Flex Class (unlimited authorization -- no par value) based on 5,582,438 outstanding shares of beneficial interest 71,393 Undistributed net investment income 1,009 Accumulated net realized gain on investments 4,061 Net unrealized appreciation on investments 37,563 -------- Total Net Assets 100.0% $340,240 ======== Net Asset Value, Offering and Redemption Price Per Share -- Trust Shares $ 13.26 ======== Net Asset Value and Redemption Price Per Share -- Investor Shares $ 13.32 ======== Maximum Offering Price Per Share -- Investor Shares ($13.32 / 96.25%) $ 13.84 ======== Net Asset Value, Offering and Redemption Price Per Share -- Flex Shares (1) $ 13.17 ======= (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 67. 35 STATEMENT OF NET ASSETS - -------------------------------------------------------------------------------- STI CLASSIC EQUITY FUNDS May 31, 1999 Capital Appreciation Fund - -------------------------------------------------------------------------------- Shares Value (000) - -------------------------------------------------------------------------------- Common Stocks (92.8%) Basic Materials (1.8%) Air Products & Chemicals 859,900 $ 35,256 Morton International 246,200 9,602 ---------- 44,858 ---------- Capital Goods (10.8%) Allied Waste Industries* 438,000 8,158 Browning Ferris Industries 32,700 1,357 General Electric 868,900 88,356 Honeywell 242,300 22,928 Illinois Tool Works 50,000 3,837 Koninklijke Philips El 50,000 4,300 Republic Services, Cl A* 455,200 10,697 Tenneco 34,300 800 Textron 83,400 7,428 Tyco International 631,652 55,191 United Technologies 340,800 21,151 Waste Management 727,079 38,444 ---------- 262,647 ---------- Communication Services (5.0%) Airtouch Communications* 56,800 5,708 AT&T 308,032 17,096 Centurytel 506,750 19,415 Fox Entertainment Group, Cl A* 195,100 4,975 GTE 287,300 18,118 MCI WorldCom* 542,169 46,830 Nextel Communications, Cl A* 5,100 188 Nokia, Cl A ADR 93,600 6,646 SBC Communications 33,000 1,687 ---------- 120,663 ---------- Consumer Cyclicals (18.2%) Abercrombie & Fitch, Cl A* 10,000 841 Bed Bath & Beyond* 6,300 215 Carnival 712,700 29,221 Costco* 533,700 38,693 CVS 704,700 32,416 Dayton Hudson 227,500 14,332 Dollar General 20,000 531 Federated Department Stores* 102,700 5,597 Gannett 267,300 19,312 Hasbro 548,700 15,707 Home Depot 91,600 5,210 Interpublic Group 144,900 10,976 Lear* 323,400 15,907 Lowe's Companies 997,900 51,828 Masco 1,244,500 35,546 Mattel 580,100 15,336 Maytag 69,000 4,869 New York Times, Cl A 243,800 8,320 Newell Rubbermaid 36,600 1,482 - -------------------------------------------------------------------------------- Shares Value (000) - -------------------------------------------------------------------------------- Consumer Cyclicals--continued Office Depot* 1,643,350 $ 34,305 Promus Hotel* 130,300 3,257 Rite Aid 857,500 21,437 Royal Caribbean Cruises 31,600 1,236 Saks* 410,800 11,348 SPX* 105,400 8,182 Starwood Hotels and Resorts 168,134 5,506 Tandy 399,700 32,975 Viacom, Cl B* 253,800 9,771 Wal-Mart Stores 60,000 2,557 Walgreen 130,000 3,022 Walt Disney 90,000 2,621 Young & Rubicam 49,800 1,905 ---------- 444,461 ---------- Consumer Staples (10.1%) American Stores 173,500 5,725 Anheuser Busch 75,800 5,538 Avon Products 245,500 12,137 Cendant* 1,002,823 18,490 Clorox 135,200 13,647 Coca Cola Enterprises 130,300 4,723 Coca-Cola 30,000 2,049 ConAgra 181,300 4,725 Flowers Industries 206,100 4,586 Fort James 224,600 8,226 Gillette 13,400 683 Kroger* 629,100 36,842 McDonald's 107,200 4,127 Paychex 57,000 1,689 Pepsi Bottling Group* 285,600 6,622 PepsiCo 488,900 17,509 Philip Morris 168,950 6,515 Procter & Gamble 119,100 11,121 Ralston Purina 532,500 14,511 Safeway* 327,100 15,210 Sara Lee 861,700 20,681 Seagram 51,700 2,685 Sysco 60,000 1,781 Unilever NV 54,664 3,570 United Rentals* 243,400 7,302 US Foodservice* 359,650 16,004 ---------- 246,698 ---------- Energy (3.1%) Anadarko Petroleum 149,700 5,614 Atlantic Richfield 100,000 8,369 Halliburton 245,500 10,158 Mobil 70,200 7,108 Niagara Mohawk Holdings* 204,900 3,048 Schlumberger 40,000 2,407 36 - -------------------------------------------------------------------------------- - -------------------------------------------------------------------------------- Shares Value (000) - -------------------------------------------------------------------------------- Energy--continued Texaco 368,500 $ 24,137 Union Pacific Resources Group 243,759 3,397 Unocal 293,100 11,651 ---------- 75,889 ---------- Financials (13.1%) Ace Ltd 252,100 7,689 Allstate 134,600 4,904 American International Group 213,096 24,360 Associates First Capital 293,200 12,021 Bank of America 329,438 21,311 Bank of New York 139,200 4,976 Bank One 313,536 17,734 Bank United, Cl A 131,800 5,453 BankBoston 335,100 15,875 Citigroup 60,400 4,001 CMAC Investment 46,300 2,341 Compass Bancshares 215,650 6,382 Conseco 526,400 16,088 Cullen/Frost Bankers 63,100 3,549 Fannie Mae 38,100 2,591 Fifth Third Bancorp 39,000 2,659 First Security 202,600 3,837 Freddie Mac 158,000 9,213 Hartford Life, Cl A 33,900 1,610 Household International 483,322 20,964 Jefferson-Pilot 29,000 1,963 Mellon Bank 835,800 29,828 Merchantile Bancorp 37,200 2,174 Merrill Lynch 87,700 7,367 North Fork Bancorporation 235,900 5,028 PNC Bank 340,800 19,511 Providian Financial 44,900 4,308 State Street 35,000 2,669 Torchmark 500,200 16,694 U.S. Bancorp 212,800 6,916 UnionBanCal 171,200 6,329 Unum 210,600 11,333 Waddell & Reed Financial, Cl A 17 -- Washington Mutual 441,924 16,876 Wells Fargo 40,000 1,600 ---------- 320,154 ---------- Health Care (11.4%) Abbott Laboratories 496,100 22,418 Alza, Cl A* 271,200 9,678 American Home Products 289,000 16,654 Baxter International 354,800 22,907 Becton Dickinson 285,400 11,059 - -------------------------------------------------------------------------------- Shares Value (000) - -------------------------------------------------------------------------------- Health Care--continued Bristol-Myers Squibb 479,400 $ 32,899 Cardinal Health 307,353 18,556 Eli Lilly 211,200 15,088 Forest Laboratories* 153,700 7,320 Health Management Associates, Cl A* 235,200 3,058 Healthsouth* 707,119 9,458 Johnson & Johnson 39,200 3,631 Medtronic 132,210 9,387 Merck 642,164 43,346 Pfizer 13,000 1,391 Schering Plough 154,700 6,971 Tenet Healthcare* 409,500 10,033 Warner Lambert 500,700 31,043 Watson Pharmaceuticals* 87,200 3,341 ---------- 278,238 ---------- Technology (18.5%) 3Com* 115,900 3,166 Analog Devices* 246,100 9,459 Amgen* 50,000 3,162 Ascend Communications* 248,200 23,005 BMC Software* 119,700 5,918 Ceridian* 803,500 26,516 Cisco Systems* 472,100 51,459 Compaq Computer 239,100 5,664 Computer Sciences* 148,800 9,626 EMC* 245,600 24,468 Hewlett Packard 253,600 23,918 IBM 681,000 79,209 Intel 358,000 19,354 Lockheed Martin 171,100 6,919 Lucent Technologies 102,728 5,843 Microsoft* 761,800 61,468 Networks Associates* 442,853 6,504 Nortel Networks 205,600 15,420 Raytheon, Cl B 46,700 3,179 Sun Microsystems* 385,600 23,040 Tellabs* 56,000 3,276 Texas Instruments 149,200 16,319 Xerox 427,400 24,015 ---------- 450,907 ---------- Transportation (0.8%) AMR* 48,400 3,149 Burlington Northern Santa Fe 263,000 8,153 Delta Air Lines 128,200 7,355 Trans World Air* 14,400 511 ---------- 19,168 ---------- Total Common Stocks (Cost $1,713,451) 2,263,683 ---------- 37 STATEMENT OF NET ASSETS - -------------------------------------------------------------------------------- STI CLASSIC EQUITY FUNDS May 31, 1999 Capital Appreciation Fund--concluded - -------------------------------------------------------------------------------- Shares/Face Amount (000) Value (000) - -------------------------------------------------------------------------------- Preferred Stocks (0.2%) Finance (0.0%) Conseco Financial Trust, CV to 0.9363 Shares* 5,500 $ 225 --------- Technology (0.2%) Qwest Trends Trust, CV to 1.6394 Shares (B)* 65,000 4,656 --------- Total Preferred Stocks (Cost $2,931) 4,881 --------- Convertible Bonds (1.1%) Comcast, CV to 1.425 Shares, Callable 07/09/99 @ 86.28 $59,800 5,285 3.350% 5/15/29 Elan Finance, CV to 6.875 Shares, Callable 12/14/03 @ 61.66 (A) (B) 0.000%, 12/14/18 9,000 4,568 Healthsouth, CV to 27.3 Shares, Callable 04/05/01 @ 101.300 3.250%, 04/01/03 2,500 2,106 Molten Metal Technology, CV to 25.8065 Shares, Callable 05/01/99 @ 102.750 (B) 5.500%, 05/01/06 10,000 50 Network Associates,* CV to 8.5380 Shares, Callable 02/13/03 @ 49.45 (A) 0.000%, 02/13/18 1,500 458 Network Associates,* CV to 8.5380 Shares, Callable 02/13/03 @ 49.452 (A) (B) 0.000%, 02/13/18 10,000 3,050 Potomac Electric Power, CV to 29.5 Shares, Callable 08/16/99 @ 94.37 5.000%, 09/01/02 4,740 4,550 Waste Mangement, CV to 22.959 Shares, Callable 02/01/00 @ 101.60 4.000%, 02/01/02 3,000 3,889 WMX Technologies, CV to 18.9065 Shares, Callable 03/15/00 @ 84.303 2.000%, 01/24/05 2,800 3,003 --------- Total Convertible Bonds (Cost $33,462) 26,959 --------- - -------------------------------------------------------------------------------- Face Amount (000) Value (000) - -------------------------------------------------------------------------------- Cash Equivalent (0.3%) Aim Liquid Assets Portfolio (C) $ 7,942 $ 7,942 ---------- Total Cash Equivalent (Cost $7,942) 7,942 ---------- Repurchase Agreements (5.3%) Deutsche Bank 4.83%, dated 05/28/99, matures 06/01/99, repurchase price $65,793,297 (collateralized by FHLMC obligation: total market value $67,073,168) (D) 65,758 65,758 Greenwich 4.83%, dated 05/28/99, matures 06/01/99, repurchase price $63,423,296 (collateralized by various FNMA obligations: total market value $64,661,178) (D) 63,389 63,389 ---------- Total Repurchase Agreements (Cost $129,147) 129,147 ---------- Total Investments (99.7%) (Cost $1,886,933) 2,432,612 ---------- Other Assets and Liabilities, Net (0.3%) 7,450 ---------- Net Assets: Fund shares of the Trust Class (unlimited authorization -- no par value) based on 118,328,583 outstanding shares of beneficial interest 1,485,183 Fund shares of the Investor Class (unlimited authorization -- no par value) based on 18,826,950 outstanding shares of beneficial interest 227,945 Fund shares of the Flex Class (unlimited authorization -- no par value) based on 10,016,114 outstanding shares of beneficial interest 153,453 Undistributed net investment income 1,207 Accumulated net realized gain on investments 26,581 Net unrealized appreciation on investments 545,693 ---------- Total Net Assets 100.0% $2,440,062 ========== Net Asset Value, Offering and Redemption Price Per Share -- Trust Shares $ 16.62 ========== Net Asset Value and Redemption Price Per Share -- Investor Shares $ 16.53 ========== Maximum Offering Price Per Share -- Investor Shares ($16.53 / 96.25%) $ 17.17 ========== Net Asset Value, Offering and Redemption Price Per Share -- Flex Shares (1) $ 16.18 ========== (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 67. 38 - -------------------------------------------------------------------------------- Emerging Markets Equity Fund - -------------------------------------------------------------------------------- Shares Value (000) - -------------------------------------------------------------------------------- Foreign Common Stocks (86.6%) Argentina (2.5%) Capex, Cl A* 33,700 $ 169 Metrogas ADR 32,204 252 Quilmes Industrial 22,000 249 -------- 670 -------- Brazil (6.7%) Petrobras ADR 13,500 190 Souza Cruz 63,500 388 Tele Centro Sul Participacoes ADR 5,200 281 Tele Norte Leste Participacoes ADR 25,600 419 Telec De Sao Paulo 4,434,000 313 Unibanco 9,100 205 -------- 1,796 -------- Chile (5.2%) Administradora de Fondos de Pensiones Provida ADR 29,500 601 Banco De A. Edwards 17,000 242 Quinenco ADR 25,000 263 Quimica Y Minera Chile ADR 8,300 289 -------- 1,395 -------- Czech Republic (2.1%) SPT Telecom* 33,000 548 -------- Greece (5.1%) Alpha Credit Bank 900 61 Alpha Credit Bank Rights* 900 3 Hellenic Telecommunication Organization 21,583 468 Panafon Hellenic Telecom* 33,310 830 -------- 1,362 -------- Hong Kong (4.1%) China Hong Kong Photo 790,000 110 Guangdong Kelon Electric Holding 188,000 144 Li & Fung 104,000 245 Seoul Horizon Trust 17,000 157 Techtronic Industries 1,290,000 233 VTech Holdings 72,000 210 -------- 1,099 -------- Hungary (3.1%) Egis 3,925 80 Matav 60,000 336 North American Business Industries* 17,500 252 Pick Szeged Rt GDR 144A 28,000 165 -------- 833 -------- India (3.9%) Hindalco Industries GDR 10,500 135 Mahanagar Telephone Nigam GDR 36,500 333 - -------------------------------------------------------------------------------- Shares Value (000) - -------------------------------------------------------------------------------- India--continued Mahanagar Telephone Nigam ADR 6,500 $ 52 Videsh Sanchar Nigam GDR 45,000 512 -------- 1,032 -------- Indonesia (3.1%) Citra Marga Nusaphala, F 944,000 52 Indonesian Satellite ADR* 10,500 208 Modern Photo Film, F* 356,000 76 PT Indosat, F 96,000 196 PT Jaya Real Property, F* 754,000 81 PT Timbang Timah 200,000 220 -------- 833 -------- Israel (5.4%) Bank Leumi Le-Israel 152,000 287 Blue Square Stores* 13,100 210 ECI Telecommunications 14,900 516 Israel Chemicals 274,000 327 Nice Systems ADR* 4,000 102 -------- 1,442 -------- Malaysia (0.7%) (1) Aluminium Company of Malaysia 154,000 66 Petronas Dagangan 114,000 117 -------- 183 -------- Mexico (11.9%) Cemex, ADR 23,300 207 Grupo Carso, Cl A* 78,000 319 Grupo Continental 335,500 544 Grupo Financiero Banorte, Cl B* 216,935 277 Grupo Industrial Maseca ADR 17,000 161 Grupo Mexico, Cl B 65,000 228 Grupo Televisa GDR* 10,800 452 Herdez, Cl B* 518,000 155 Panamerican Beverages 12,500 290 Telefonos de Mexico ADR 6,800 544 -------- 3,177 -------- Panama (0.3%) Banco Latinamericano de Exportaciones 2,800 80 -------- Philippines (3.2%) Bacnotan Consolidated 160,000 81 First Philippine Holdings, Cl B 134,250 170 La Tondena Distillers 160,000 186 Manila Electric, Cl B 72,000 249 Queenbee Resourses Jollibee Warrant, F* 310,000 176 -------- 862 -------- Poland (1.1%) Bank Handlowy 25,000 294 -------- 39 STATEMENT OF NET ASSETS - -------------------------------------------------------------------------------- STI CLASSIC EQUITY FUNDS May 31, 1999 Emerging Markets Equity Fund--concluded - -------------------------------------------------------------------------------- Shares Value (000) - -------------------------------------------------------------------------------- Portugal (7.2%) Banco Pinto & Sotto Mayor 34,200 $ 678 Cimpor-Cimentos de Portugal 15,720 419 Electricidade de Portugal 12,500 450 Portugal Telecom ADR 8,200 371 -------- 1,918 -------- Singapore (0.7%) Amtek Engineering 246,000 201 -------- South Africa (6.9%) ABSA Group 56,235 257 Amalgamated Beverage 13,855 91 Kersaf Investments 73,516 294 Liberty Life Association of Africa 23,983 322 Nedcor 15,273 305 South African Breweries 73,616 590 -------- 1,859 -------- South Korea (13.4%) Dae Duck Electronics Rights* 11,865 39 Dae Duck Electronics 49,440 475 Hite Brewery* 11,000 273 Hite Brewery Rights* 1,508 15 Korea Electric Power ADR 10,000 171 Korea Telecom ADR* 4,000 127 Pohang Iron & Steel 5,000 390 Samsung* 27,000 421 Samsung Electronics 3,400 237 Samsung Electronics Rights* 272 3 Shinhan Bank 25,000 244 Sk Telecom 513 563 Sk Telecom ADR 43,560 621 -------- 3,579 -------- Total Foreign Common Stocks (Cost $24,910) 23,163 -------- Foreign Preferred Stocks (7.6%) Brazil (7.6%) Banco do Estada de Sao Paulo 5,540,000 238 Banco Itau 900,000 456 Brahma 600,000 306 Cemig 22,483,067 474 Fertilizantes Fosfatados 70,700,000 230 Gerdau 21,700,000 328 -------- Total Foreign Preferred Stocks (Cost $2,387) 2,032 -------- - -------------------------------------------------------------------------------- Face Amount (000) Value (000) - -------------------------------------------------------------------------------- Time Deposits (3.7%) Cayman Time Deposit 4.375%, 06/01/99 $ 1,000 $ 1,000 -------- Total Time Deposits (Cost $1,000) 1,000 -------- Total Investments (97.9%) (Cost $28,297) 26,195 -------- Other Assets and Liabilities, Net (2.1%) 556 -------- Net Assets: Fund shares of the Trust Class (unlimited authorization -- no par value) based on 3,293,687 outstanding shares of beneficial interest 36,352 Undistributed net investment income 52 Accumulated net realized loss on investments (7,538) Net unrealized depreciation on investments (2,102) Net unrealized depreciation on foreign currency and translation of other assets and liabilities in foreign currency investments (13) -------- Total Net Assets 100.0% $ 26,751 ======== Net Asset Value, Offering and Redemption Price Per Share -- Trust Shares $ 8.12 ======== (1) The repatriation of proceeds received from the sale of these securities are subject to a levy depending upon the length of time the position has been held. This levy is applicable to securities purchased before February 15, 1999. The levy ranges from 30% to 0% and is based on the date the proceeds are repatriated. As a result, these securities are being treated as illiquid until September 1, 1999, when the levy is no longer in effect. The accompanying notes are an integral part of the financial statements. For descriptions of abbreviations, please see page 67. 40 - -------------------------------------------------------------------------------- Growth and Income Fund - -------------------------------------------------------------------------------- Shares Value (000) - -------------------------------------------------------------------------------- Common Stocks (95.1%) Basic Materials (4.5%) Great Lakes Chemical 200,000 $ 9,037 International Paper 450,000 22,500 -------- 31,537 -------- Capital Goods (8.6%) Deere 300,000 11,419 Ingersoll-Rand 200,000 12,737 General Electric 125,000 12,711 Koninklijke Philips El 200,000 17,200 Textron 75,000 6,680 -------- 60,747 -------- Communication Services (3.9%) AT&T 262,500 14,569 SBC Communications 250,000 12,781 -------- 27,350 -------- Consumer Cyclicals (9.5%) Dayton Hudson 175,000 11,025 Federated Department Stores* 250,000 13,625 Ford Motor 50,000 2,853 Lowes 100,000 5,194 UAL* 100,000 6,725 Warnaco Group, Cl A 550,000 16,225 Walt Disney 400,000 11,650 -------- 67,297 -------- Consumer Staples (13.1%) Coca-Cola 125,000 8,539 Kellogg 500,000 17,344 Modis Professional Services* 574,000 8,467 PepsiCo 325,000 11,639 Philip Morris 400,000 15,425 Quaker Oats 200,000 13,212 Sara Lee 750,000 18,000 -------- 92,626 -------- Energy (7.8%) Exxon 200,000 15,975 Mobil 130,000 13,163 Texaco 150,000 9,825 Schlumberger 275,000 16,552 -------- 55,515 -------- Financials (16.0%) American International Group 115,000 13,146 Bank of America 200,000 12,937 BankBoston 225,000 10,659 Berkshire Hathaway Cl B* 7 16,632 Fannie Mae 200,000 13,600 - -------------------------------------------------------------------------------- Shares/Face Amount (000) Value (000) - -------------------------------------------------------------------------------- Financials--continued Morgan Stanley, Dean Witter, Discover 75,000 $ 7,238 KeyCorp 500,000 17,375 Washington Mutual 300,000 11,456 Wells Fargo 250,000 10,000 -------- 113,043 -------- Health Care (7.9%) Aetna 200,000 18,163 Johnson & Johnson 200,000 18,525 Merck 100,000 6,750 Schering Plough 275,000 12,392 -------- 55,830 -------- Technology (18.2%) Adaptec* 650,000 20,070 Amgen* 250,000 15,813 Boeing 225,000 9,506 Cisco Systems* 100,000 10,900 Hewlett Packard 175,000 16,505 IBM 120,000 13,957 Intel 200,000 10,812 Microsoft* 150,000 12,103 Quantum* 500,000 9,906 Sun Microsystems* 150,000 8,962 -------- 128,534 -------- Transportation (1.3%) Canadian Pacific Limited 400,000 9,150 -------- Utilities (4.3%) Duke Power 131,800 7,949 Midamerican Energy Holdings 241,500 8,151 Southern 500,000 14,187 -------- 30,287 -------- Total Common Stocks (Cost $494,744) 671,916 -------- Preferred Stock (0.5%) Calenergy Cap Trust III, CV to 1.0471 Shares* 75,000 3,478 -------- Total Preferred Stock (Cost $3,253) 3,478 -------- Cash Equivalent (0.0%) Aim Liquid Assets Portfolio (C) $ 39 39 -------- Total Cash Equivalent (Cost $39) 39 -------- 41 STATEMENT OF NET ASSETS - -------------------------------------------------------------------------------- STI CLASSIC EQUITY FUNDS May 31, 1999 Growth and Income Fund--concluded - -------------------------------------------------------------------------------- Shares Value (000) - -------------------------------------------------------------------------------- Repurchase Agreement (3.3%) JP Morgan 4.82%, dated 05/28/99, matures 06/01/99, repurchase price $23,604,382 (collateralized by various GNMA obligations: total market value $23,870,492) (D) 23,595 $ 23,595 -------- Total Repurchase Agreement (Cost $23,595) 23,595 -------- Total Investments (98.9%) (Cost $521,631) 699,028 -------- Other Assets and Liabilities, Net (1.1%) 7,372 -------- Net Assets: Fund Shares of Trust Class (unlimited authorization -- no par value) based on 39,415,860 outstanding shares 420,958 Fund Shares of Investor Class (unlimited authorization -- no par value) based on 2,279,338 outstanding shares 28,578 Fund Shares of Flex Class (unlimited authorization -- no par value) based on 2,183,767 outstanding shares 31,216 Undistributed net investment income 614 Accumulated net realized gain on investments 47,637 Net unrealized appreciation on investments 177,397 -------- Total Net Assets 100.0% $706,400 ======== Net Asset Value, Offering and Redemption Price Per Share -- Trust Shares $ 16.09 ======== Net Asset Value, Offering and Redemption Price Per Share -- Investor Shares $ 16.21 ======== Maximum Offer Price Per Share -- Investor Shares ($16.21 / 96.25%) $ 16.84 ======== Net Asset Value, Offering and Redemption Price Per Share -- Flex Shares (1) $ 16.10 ======== (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 67. 42 - -------------------------------------------------------------------------------- International Equity Fund - -------------------------------------------------------------------------------- Shares Value (000) - -------------------------------------------------------------------------------- Foreign Common Stocks (96.2%) Australia (4.0%) AMP 767,600 $ 8,349 Broken Hill Proprietary 344,300 3,531 Leighton Holdings 1,031,813 3,936 National Australia Bank 382,100 6,182 QBE Insurance 502,267 1,965 -------- 23,963 -------- Austria (1.0%) Erste Bank* 107,400 5,949 -------- Brazil (0.6%) Tele Norte Leste Participacoes ADR 231,400 3,789 -------- Canada (3.2%) Nortel Networks 152,250 11,427 Royal Bank of Canada 55,200 2,530 Teleglobe 168,300 5,070 -------- 19,027 -------- Denmark (0.7%) Novo-Nordisk, Cl B 42,280 4,311 -------- Finland (2.8%) Merita 1,283,700 7,606 Nokia ADR, Cl A 51,400 3,649 Sonera Group Oyj 303,100 5,929 -------- 17,184 -------- France (13.4%) Accor 22,500 5,521 Assurances Generales de France 102,800 5,098 Axa 73,985 8,529 Dexia France 53,380 7,417 Elf Aquitane 42,600 6,168 Equant* 58,400 4,813 Lafarge 60,750 5,476 Michelin, Cl B 96,450 4,254 SEITA 86,847 5,268 Societe Generale D'Entreprises 86,009 4,103 STMicroelectonics* 25,400 2,941 Suez Lyonnaise des Eaux 36,030 5,973 Technip 51,300 5,566 Vivendi 131,010 9,704 Vivendi Rights* 131,010 135 -------- 80,966 -------- Germany (8.4%) Allianz 10,210 2,791 Bayerische Vereinsbank 89,200 4,820 Mannesmann 71,670 9,794 Metallgesellschaft 340,150 6,121 MobilCom 8,220 647 Preussag 162,859 8,410 - -------------------------------------------------------------------------------- Shares Value (000) - -------------------------------------------------------------------------------- Germany--continued RWE 275,550 $ 12,317 Veba 102,300 5,838 -------- 50,738 -------- Greece (2.9%) Hellenic Telecom Organization 383,502 8,320 Panafon Hellenic Telecom* 358,490 8,929 -------- 17,249 -------- Indonesia (0.1%) Modern Photo Film, F* 1,440,000 307 -------- Ireland (3.0%) Allied Irish Bank 326,600 4,321 Bank of Ireland 746,718 13,848 -------- 18,169 -------- Israel (1.1%) ECI Telecommunications 197,180 6,827 -------- Italy (5.7%) Banca Intesa 688,000 3,503 Banca Intesa Rights* 688,000 15 Banca Nazionale del Lavoro* 1,361,150 4,189 ENI 1,028,800 6,429 Mediaset 321,250 2,604 San Paolo-IMI 596,100 8,053 Telecom Italia 920,000 9,482 -------- 34,275 -------- Japan (9.6%) Bank of Tokyo Mitsubishi 363,000 4,836 Canon 134,000 3,361 Eisai 148,300 2,750 Family Mart 64,700 2,687 Honda Motor 149,000 6,078 Nippon Telegraph & Telephone 276 2,679 NTT Mobile Communication Network 201 10,927 Olympus Optical 413,000 5,095 Sumitomo Bank 337,000 4,055 Takefuji 74,700 6,543 TDK 78,400 6,693 Terumo 106,000 2,485 -------- 58,189 -------- Netherlands (9.1%) Ahold 150,500 5,252 ASM Lithography Holding* 81,000 3,570 ING Groep 158,203 8,458 KPN 259,310 12,525 Philips Electronics 90,850 8,151 TNT Post Group 291,700 7,334 43 STATEMENT OF NET ASSETS/SCHEDULE OF INVESTMENTS - -------------------------------------------------------------------------------- STI CLASSIC EQUITY FUNDS May 31, 1999 International Equity Fund--concluded - -------------------------------------------------------------------------------- Shares Value (000) - -------------------------------------------------------------------------------- Netherlands--continued Unique International 264,710 $ 6,048 Wolters Kluwer 95,200 3,829 -------- 55,167 -------- New Zealand (1.6%) Fletcher Challenge Building 1,877,298 2,915 Telecom of New Zealand 1,530,000 6,602 -------- 9,517 -------- Norway (1.1%) Petroleum Geo Services* 367,390 5,934 Petroleum Geo Services ADR* 45,900 740 -------- 6,674 -------- Panama (0.7%) Banco Latinamericano de Exportaciones 150,400 4,277 -------- Portugal (1.9%) Banco Espirito Santo 144,480 3,542 Banco Pinto & Sotto Mayor 127,244 2,522 BPI-SGPS 91,466 1,956 BPI-SGPS Rights* 68,600 46 Portugal Telecom ADR 72,760 3,292 -------- 11,358 -------- Spain (2.5%) Argentaria 390,000 8,743 Telefonica Bonus Rights* 133,100 129 Telefonica de Espana 133,100 6,384 -------- 15,256 -------- Sweden (2.2%) Castellum 406,600 3,643 Drott, Cl B 136,100 1,164 Electrolux 243,800 4,723 Swedish Match 1,107,700 4,034 -------- 13,564 -------- United Kingdom (19.1%) Allied Zurich 711,650 9,084 AstraZeneca Group 130,950 5,210 Bass 247,982 3,663 BP Amoco 395,300 7,081 British Energy 879,400 7,862 British Steel 2,855,000 6,066 Diageo 632,800 6,662 Gallaher Group 1,063,500 6,728 Glaxo Wellcome 137,000 3,849 Granada Group 231,400 4,742 Imperial Tobacco Group 624,700 7,032 J Sainsbury 1,040,900 6,335 Lloyds TSB Group 465,449 6,158 National Westminster Bank 270,013 6,200 Railtrack Group 310,300 6,364 Reckitt & Colman 436,300 4,873 - -------------------------------------------------------------------------------- Shares/Face Amount (000) Value (000) - -------------------------------------------------------------------------------- United Kingdom--continued Securicor 775,600 $ 6,965 Smithkline Beecham 463,058 6,044 South African Breweries* 548,630 4,408 -------- 115,326 -------- United States (1.5%) Global TeleSystems Group* 121,251 9,215 -------- Total Foreign Common Stocks (Cost $544,016) 581,297 -------- Time Deposits (3.6%) Cayman Time Deposit 4.375%, 06/01/99 $ 22,000 22,000 -------- Total Time Deposits (Cost $22,000) 22,000 -------- Total Investments (99.8%) (Cost $566,016) 603,297 -------- Other Assets and Liabilities, (Net 0.2%) 1,206 -------- Net Assets: Fund shares of the Trust Class (unlimited authorization -- no par value) based on 44,211,314 outstanding shares of beneficial interest 513,228 Fund shares of the Investor Class (unlimited authorization -- no par value) based on 1,094,862 outstanding shares of beneficial interest 13,578 Fund shares of the Flex Class (unlimited authorization -- no par value) based on 1,356,567 outstanding shares of beneficial interest 18,315 Undistributed net investment income 1,810 Accumulated net realized gain on investments 20,388 Net unrealized appreciation on investments 37,281 Net unrealized depreciation on foreign currency and translation of other assets and liabilities in foreign currency investments (97) -------- Total Net Assets 100.0% $604,503 ======== Net Asset Value, Offering and Redemption Price Per Share -- Trust Shares $ 12.97 ======== Net Asset Value, Offering and Redemption Price Per Share -- Investor Shares $ 12.89 ======== Maximum Offering Per Share -- Investor Shares ($12.89 / 96.25%) $ 13.39 ======== Net Asset Value, Offering and Redemption Price Per Share -- Flex Shares (1) $ 12.58 ======== (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 67. 44 - -------------------------------------------------------------------------------- International Equity Index Fund - -------------------------------------------------------------------------------- Shares Value (000) - -------------------------------------------------------------------------------- Foreign Common Stocks (98.0%) Australia (3.0%) Amcor 18,995 $ 101 AMP 12,551 137 Brambles Industries 3,313 88 Broken Hill Proprietary 21,354 219 Coles Myer 30,235 158 CSR 43,040 115 Lend Lease 10,599 134 Mount Isa Mines Holdings 70,425 38 National Australia Bank 16,622 269 Newscorp 33,881 280 Pacific Dunlop 48,287 86 Rio Tinto 8,449 118 Telstra 61,083 302 Westpac Banking 36,880 252 WMC 33,829 125 ------ 2,422 ------ Austria (1.2%) Bank Austria 5,449 279 Generali Holding Vienna 519 96 Oest Elektrizatswirts, Cl A 2,027 265 OMV 1,907 159 Universale Bau 165 5 Wienerberger Baustoff 731 128 ------ 932 ------ Belgium (1.5%) Bekaert 162 68 Cie Maritime Belge 224 10 Delhaize Freres 1,000 86 Electrabel 660 203 Fortis CVG* 861 5 Fortis, Cl B 6,768 217 Groupe Bruxelles Lambert 673 117 KBC Bancassurance Holding 2,900 176 Petrofina 292 157 Solvay, Cl A 1,496 100 Tractebel 165 22 Union Miniere 952 35 ------ 1,196 ------ Denmark (1.0%) Carlsberg, Cl B 1,127 52 D/S 1912, Cl B 25 210 D/S Svendborg, Cl B 8 96 Danisco 1,610 77 Den Danske Bank 600 64 Novo-Nordisk, Cl B 1,270 130 Tele Danmark, Cl B 1,408 144 ------ 773 ------ - -------------------------------------------------------------------------------- Shares Value (000) - -------------------------------------------------------------------------------- Finland (1.5%) Merita 12,800 $ 76 Nokia Oyj, Cl A 12,800 911 Outokumpu Oy Akt, Cl A 3,100 32 Sonera Group Oyj 2,600 51 UPM-Kymmene 3,500 103 ------ 1,173 ------ France (9.9%) Accor 508 125 Air Liquide 1,221 184 Alcatel Alsthom 2,122 252 Axa 3,588 414 Banque National Paris, Cl A 2,161 182 Bouygues 403 107 Canal Plus 343 99 Cap Gemini 788 114 Carrefour 2,569 337 Casino Guichard-Perrachon 806 77 Cie de Saint Gobain 1,143 179 Compagnie Financiere de Paribas 2,411 262 Elf Aquitane 2,882 417 Eridania Beghin-Say 775 113 France Telecom 10,924 838 Groupe Danone 839 231 L'Oreal 771 464 Lafarge 1,032 93 Legrand 370 77 Louis Vuitton-Moet Hennessy 984 274 Michelin, Cl B 2,803 124 Pernod-Ricard 1,228 82 Peugeot 565 84 Pinault-Printemps-Redoute 1,744 297 Promodes 231 151 Rhone Poulenc, Cl A 4,070 193 Sanofi-Synthelabo* 12,962 546 Schneider 1,765 105 SEITA 1,128 68 Skis Rossignol 2,648 39 Societe Generale 1,075 195 Suez Lyonnaise des Eaux 1,740 288 Total, Cl B 2,637 320 Unibail 798 108 Valeo 1,330 109 Vivendi 6,348 470 Vivendi Rights* 6,348 7 ------ 8,025 ------ Germany (12.8%) Aachener & Munchener Bete 810 87 Allianz 3,380 924 BASF 9,800 381 45 SCHEDULE OF INVESTMENTS - -------------------------------------------------------------------------------- STI CLASSIC EQUITY FUNDS May 31, 1999 International Equity Index Fund--continued - -------------------------------------------------------------------------------- Shares Value (000) - -------------------------------------------------------------------------------- Germany--continued Bayer 11,360 $ 442 Bayerische Vereinsbank 6,072 328 Beiersdorf 1,140 74 Daimler Chrysler 14,066 1,214 Degussa* 990 39 Deutsche Bank 8,670 452 Deutsche Telekom 32,100 1,281 Dresdner Bank Frankfurt 7,500 279 Heidelberger Zement 1,274 103 Hochtief 1,060 47 Karstadt 175 72 Linde 291 170 Lufthansa 7,330 158 Man Muenchen 2,960 87 Mannesmann 5,380 735 Merck KGaA 2,900 100 Metro 3,951 249 Muenchener Rueckvers* 1,110 188 Muenchener Rueckvers, Registered 2,510 429 Preussag 2,810 145 RWE 6,190 277 SAP 900 313 Schering 1,810 194 Siemens 8,340 561 Thyssen* 8,210 162 Veba 6,610 377 Viag 533 243 Volkswagen 4,610 286 ------- 10,397 ------- Hong Kong (1.8%) Cathay Pacific Airways 39,000 59 Cheung Kong Holdings 21,000 171 CLP Holdings 18,500 89 Hang Seng Bank 14,900 159 Hong Kong & China Gas 44,000 62 Hong Kong Telecommunications 100,800 233 Hutchison Whampoa 28,800 240 Johnson Electric Holdings 13,000 48 New World Development 22,000 54 Shangri-La Asia 46,000 49 Sun Hung Kai Properties 28,600 229 Swire Pacific 15,000 72 ------- 1,465 ------- Ireland (0.7%) Allied Irish Banks 23,400 309 CRH 16,100 275 ------- 584 ------- - -------------------------------------------------------------------------------- Shares Value (000) - -------------------------------------------------------------------------------- Italy (8.2%) Alitalia* 37,439 $ 110 Assicurazioni Generali 19,000 676 Banca Commerciale Italiana 34,000 244 Banca Intesa 49,603 253 Benetton Group 67,500 132 Edison 11,000 96 ENI 155,500 972 Fiat 82,000 264 Fiat RNC 47,000 77 INA 78,000 182 Italgas 15,000 64 Mediaset 24,500 199 Mediobanca 10,500 119 Mondadori Editore 3,734 65 Montedison 132,500 118 Olivetti* 60,000 187 Parmalat Finanziaria 60,000 81 Pirelli 61,000 171 Riunione Adriatica di Sicurta 10,385 101 San Paolo-IMI 26,236 354 Sirti 16,000 80 Telecom Italia 67,500 696 Telecom Italia 16,000 87 Telecom Italia Mobile 30,000 101 Telecom Italia Mobile 128,500 756 Unicredito Italiano 93,000 438 Unione Immobiliare 109,000 51 ------- 6,674 ------- Japan (34.3%) Acom 2,100 149 Advantest 1,600 126 Ajinomoto 10,000 106 Aoki* 11,000 7 Aoyamma Trading 1,200 36 Asahi Bank 39,000 184 Asahi Breweries 10,000 126 Asahi Chemical Industry 24,000 129 Asahi Glass 24,000 155 Autobacs Seven 900 35 Bank of Tokyo - Mitsubishi 70,000 933 Bank of Yokohama 17,000 45 Bridgestone 12,000 313 Canon 15,000 376 Chiba Bank 17,000 67 Chiyoda* 5,000 10 Citizen Watch 11,000 81 Cosmo Oil 24,000 43 Chugai Pharmaceutical 2,000 22 Daiichi Pharmaceutical 4,000 64 Dai Nippon Printing 10,000 149 46 - -------------------------------------------------------------------------------- - -------------------------------------------------------------------------------- Shares Value (000) - -------------------------------------------------------------------------------- Japan--continued Daicel Chemical Industries 8,000 $ 26 Daiei* 25,000 72 Daikyo* 4,000 11 Daimaru 4,000 16 Daito Trust Construction 2,000 22 Daiwa House Industry 6,000 64 Daiwa Kosho Lease 17,000 65 Daiwa Securities 23,000 121 Denso 14,000 257 East Japan Railway 58 334 Ebara 11,000 123 Eisai 4,000 74 Fanuc 5,000 214 Fuji Bank 52,000 327 Fuji Photo Film 9,000 320 Fujita* 17,000 12 Fujita Kanko 9,000 90 Fujitsu 33,000 548 Furukawa Electric 24,000 94 Gakken* 5,000 7 Gunze 15,000 36 Hankyu 31,000 127 Hankyu Department Stores 6,000 40 Haseko* 15,000 12 Hazama* 20,000 16 Hitachi 63,000 461 Hokuriko Bank* 17,000 32 Honda Motor 15,000 612 Hoya 2,000 102 Industrial Bank of Japan 43,000 302 Isetan 4,000 36 Ito Yokado 6,000 356 Itochu* 55,000 124 Itoham Foods 16,000 67 Japan Airlines 39,000 121 Japan Energy 37,000 43 Japan Metals & Chemicals* 4,000 6 Japan Steel Works* 3,000 4 Joyo Bank 25,300 102 Jusco 7,000 132 Kajima 10,000 30 Kaken Pharmaceutical 4,000 24 Kamigumi 9,000 42 Kandenko 4,000 25 Kanebo* 10,000 16 Kansai Electric Power 18,200 372 Kao 9,000 246 Kawasaki Heavy Industries 22,000 49 Kawasaki Kisen Kaisha 10,000 22 Kawasaki Steel 48,000 85 - -------------------------------------------------------------------------------- Shares Value (000) - -------------------------------------------------------------------------------- Japan--continued Kinki Nippon Railway 42,000 $ 209 Kirin Brewery 19,000 217 Kissei Pharmacutical 1,000 21 Komatsu 22,000 130 Konami 600 20 Koyo Seiko 5,000 31 Kubota 33,000 96 Kumagai Gumi* 18,000 19 Kurabo Industries 7,000 8 Kyocera 4,000 209 Kyudenko 3,000 19 Maeda Road Contruction 4,000 27 Marubeni 16,000 33 Maruha 8,000 9 Marui 6,000 90 Matsushita Electric 30,000 540 Minebea 9,000 89 Misawa Homes 7,000 25 Mitsubishi 26,000 157 Mitsubishi Chemical 50,000 141 Mitsubishi Electric 42,000 133 Mitsubishi Estate 22,000 208 Mitsubishi Heavy Industries 49,000 190 Mitsubishi Materials 44,000 87 Mitsubishi Trust & Banking 19,000 171 Mitsui 35,000 223 Mitsui Fudosan 10,000 83 Mitsui O.S.K. Lines 19,000 43 Mitsui Trust & Banking 37,000 56 Mitsui 1,000 3 Mitsukoshi 17,000 59 Murata Manufacturing 4,000 219 Mycal 9,000 50 Namco 2,300 56 NEC 26,000 287 New Oji Paper 17,000 98 NGK Spark Plug 7,000 74 Nichido Fire & Marine Insurance 15,000 76 Niigata Engineering* 2,000 2 Nikon 6,000 78 Nippon Beet Sugar Manufacturing 6,000 11 Nippon Express 13,000 74 Nippon Oil 54,000 215 Nippon Paper Industries 20,000 98 Nippon Sharyo 5,000 14 Nippon Sheet Glass 13,000 43 Nippon Shinpan 6,000 19 Nippon Steel 102,000 213 Nippon Suisan Kaisha 6,000 9 Nippon Telegraph & Telephone 194 1,883 47 SCHEDULE OF INVESTMENTS - -------------------------------------------------------------------------------- STI CLASSIC EQUITY FUNDS May 31, 1999 International Equity Index Fund--continued - -------------------------------------------------------------------------------- Shares Value (000) - -------------------------------------------------------------------------------- Japan--continued Nippon Yusen 45,000 $ 181 Nishimatsu Construction 3,000 16 Nissan Motor 42,000 184 NKK* 125,000 97 Nomura Securities 26,000 258 Noritake 11,000 53 NSK 10,000 48 NTN 13,000 40 Obayashi 27,000 127 Odakyu Electric Railway 24,000 81 Okumura 5,000 20 Olympus Optical 10,000 123 Orient 9,000 25 Orix 1,000 79 Osaka Gas 38,000 123 Oyo 2,200 41 Penta-Ocean Construction* 12,000 20 Renown* 8,000 11 Rohm 2,000 260 Sakura Bank 58,000 196 Sanden 7,000 53 Sankyo 7,000 164 Sanrio 2,000 45 Sanyo Electric 47,000 168 Sato Kogyo* 20,000 17 Secom 1,000 95 Sega Enterprises 3,600 59 Seino Transportation 9,000 55 Seiyu* 6,000 36 Sekisui Chemical 9,000 55 Sekisui House 14,000 151 Sharp 20,000 221 Shimachu 1,000 23 Shimano 3,000 74 Shimizu 29,000 102 Shin-Etsu Chemical 12,000 370 Shiseido 5,000 74 Shizuoka Bank 12,000 125 Skylark 3,000 56 SMC 1,100 100 Snow Brand Milk Products 8,000 39 Sony 6,400 598 Sumitomo 7,000 48 Sumitomo Bank 46,000 553 Sumitomo Chemical 29,000 122 Sumitomo Electric 14,000 156 Sumitomo Marine & Fire Insurance 6,000 39 Sumitomo Metal* 76,000 99 Taisei 35,000 79 Taisho Pharmaceutical 4,000 127 - -------------------------------------------------------------------------------- Shares Value (000) - -------------------------------------------------------------------------------- Japan--continued Takara Shuzo 4,000 $ 27 Takashimaya 4,000 36 Takeda Chemical 20,000 883 Toa 10,000 17 Tobu Railway 26,000 74 Toei 10,000 42 Tohoku Electric Power 8,500 131 Tokai Bank 29,000 168 Tokio Marine & Fire Insurance 23,000 250 Tokyo Dome* 9,000 49 Tokyo Electric Power 21,000 455 Tokyo Electronics 3,000 165 Tokyo Gas 55,000 139 Tokyo Tatemono 7,000 15 Tokyotokeiba 21,000 34 Tokyu 23,000 59 Toppan Printing 14,000 156 Toray 32,000 155 Tostem 5,000 96 Toto 12,700 97 Toyo Engineering* 6,000 7 Trans Cosmos 300 14 Toyo Seikan Kaisha 6,300 119 Toyoda Automatic Loom 5,000 89 Toyota Motor 58,000 1,573 Ube Industries 31,000 58 Uny 4,000 60 Yamaha 6,000 61 Yamaichi Securities* 15,000 -- Yamanouchi Pharmaceutical 8,000 274 Yamato Transport 5,000 82 Yasuda Trust & Banking* 56,000 67 ------- 27,798 ------- Malaysia (0.8%) (1) Rothmans of Pall Mall 13,000 96 Telekom Malaysia 80,000 274 Tenaga Nasional 134,000 305 ------- 675 ------- Netherlands (2.4%) ABN Amro Holding 6,040 134 Aegon 1,947 157 Ahold 905 32 Akzo Nobel 1,180 49 Buhrmann 768 13 Heineken 1,599 89 ING Groep 4,204 225 KPN 2,386 115 Philips Electronics 2,517 226 48 - -------------------------------------------------------------------------------- - -------------------------------------------------------------------------------- Shares Value (000) - -------------------------------------------------------------------------------- Netherlands--continued Royal Dutch Petroleum 9,620 $ 536 TNT Post Group 2,086 52 Unilever 2,844 189 Wolters Kluwer 2,288 92 ------- 1,909 ------- New Zealand (0.4%) Carter Holt Harvey 101,800 117 Telecom of New Zealand 46,100 199 ------- 316 ------- Norway (1.0%) Bergesen, Cl A 4,850 73 Christiana Bank 30,500 123 Den Norske Bank, Cl B 34,600 120 Hafslund Nycomed, Cl B 2,200 9 Kvaerner* 2,500 41 Kvaerner Rights* 1,400 1 Norsk Hydro 6,525 257 Orkla, Cl A 8,600 136 Uni Storebrand* 9,987 67 ------- 827 ------- Portugal (0.5%) Banco Comercial Portugues 4,463 122 Electricidade de Portugal 7,440 135 Portugal Telecom 4,072 184 Soares Da Costa* 2,528 8 ------- 449 ------- Singapore (0.8%) Development Bank of Singapore `F' 2,000 21 Overseas Chinese Bank 27,000 211 Singapore International Airlines, `F' 28,000 250 Singapore Telecommunications 105,000 177 ------- 659 ------- Spain (3.7%) Argentaria 6,500 146 Autopistas CESA 9,104 116 Banco Bilbao Vizcaya 24,311 351 Banco Santander Central Hispano 28,592 597 Dragados Construccion 5,100 59 Endesa 10,000 213 Formento de Construcciones y Contratas 900 52 Gas Natural 1,650 128 Iberdrola 11,159 160 Mapfre 3,800 79 Repsol 14,543 263 Sociedad General Aguas de Barcelona 1,474 78 Tabacalera, Cl A 4,150 81 - -------------------------------------------------------------------------------- Shares Value (000) - -------------------------------------------------------------------------------- Spain--continued Telefonica de Espana 12,088 $ 580 Union Electrica Fenosa 4,282 56 ------ 2,959 ------ Sweden (1.4%) ABB, Cl A 4,900 67 Astra Zeneca 3,817 150 Diligentia 1,350 10 Drott, Cl B 1,400 12 Electrolux 3,300 64 Ericsson, Cl B 10,100 270 Forenings Sparbaken, Cl A 3,000 61 Granges 550 9 Hennes & Mauritz, Cl B 6,800 153 Skandinaviska Enskilda Banken 4,300 52 Skanska, Cl B 1,400 49 Svenska Cellulosa, Cl B 2,100 49 Svenska Handelsbanken, Cl A 1,600 58 Swedish Match 16,400 60 Volvo, Cl B 2,450 62 ------ 1,126 ------ Switzerland (1.6%) Adecco 50 26 Credit Suisse Group 690 120 Nestle 162 291 Novartis, Registered 144 209 Roche Holdings, Bearer 5 87 Roche Holdings, Genusschein 15 159 Swiss Re 35 66 Swisscom* 210 76 UBS 759 220 Zurich Allied 110 65 ------ 1,319 ------ United Kingdom (9.5%) Abbey National 7,124 147 Allied Zurich 8,498 108 Astra Zeneca Group 4,255 169 Associated British Foods 4,109 31 Barclays Bank 7,549 229 Bass 10,173 150 BG 18,252 100 Blue Circle Industries 12,219 76 Boots 7,687 101 BP Amoco 45,607 817 British American Tobacco 10,823 99 British Sky Broadcasting 9,683 92 British Telecommunications 30,208 504 Cable & Wireless 12,419 153 Cadbury Schweppes 22,149 150 Centrica* 20,906 42 49 SCHEDULE OF INVESTMENTS - -------------------------------------------------------------------------------- STI CLASSIC EQUITY FUNDS May 31, 1999 International Equity Index Fund--concluded - -------------------------------------------------------------------------------- Shares Value (000) - -------------------------------------------------------------------------------- United Kingdom--continued CGU 8,305 $ 121 Diageo 18,459 194 General Electric 18,477 175 Glaxo Wellcome 15,591 438 Granada Group 7,191 147 Great Universal Stores 9,649 103 Halifax 19,993 258 Hanson 7,986 72 HSBC Holdings 8,842 296 HSBC Holdings 4,105 137 Imperial Chemical 8,890 98 Invensys 46,336 211 J Sainsbury 15,927 97 Kingfisher 6,674 84 Legal & General Group 37,656 110 Lloyds TSB Group 25,483 337 Marks & Spencer 22,886 145 National Power 8,684 68 Prudential 13,456 178 Rentokil Group 19,812 80 Reuters Group 8,867 123 Rio Tinto 10,039 147 RMC Group 4,283 57 Royal & Sun Alliance 10,696 88 Royal Bank of Scotland Group 4,518 96 Smithkline Beecham 24,544 320 Tesco 42,363 123 Unilever 14,448 127 Vodafone Group 14,771 282 ------ 7,680 ------ Total Foreign Common Stocks (Cost $65,129) 79,358 ------ - -------------------------------------------------------------------------------- Shares Value (000) - -------------------------------------------------------------------------------- Foreign Preferred Stocks (0.7%) Australia (0.2%) News Corporation 22,157 $ 169 ------- Germany (0.4%) RWE 1,280 38 SAP 630 252 Volkswagen 1,970 70 ------- 360 ------- Italy (0.1%) Fiat 50,000 77 ------- Total Foreign Preferred Stocks (Cost $438) 606 ------- Total Investments (98.7%) (Cost $65,567) $79,964 ======= (1) The repatriation of proceeds received from the sale of these securities are subject to a levy depending upon the length of time the position has been held. This levy is applicable to securities purchased before February 15, 1999. The levy ranges from 30% to 0% and is based on the date the proceeds are repatriated. As a result, these securities are being treated as illiquid until September 1, 1999, when the levy is no longer in effect. The accompanying notes are an integral part of the financial statements. For descriptions of abbreviations, please see page 67. 50 STATEMENT OF NET ASSETS - -------------------------------------------------------------------------------- STI CLASSIC EQUITY FUNDS May 31, 1999 Life Vision Balanced Portfolio - -------------------------------------------------------------------------------- Shares Value (000) - -------------------------------------------------------------------------------- Equity Funds (58.7%) STI Classic Capital Appreciation Fund, Trust Class 1,028,515 $17,094 STI Classic Growth & Income Fund, Trust Class 1,606,704 25,852 STI Classic Small Cap Growth Stock Fund, Trust Class 604,900 8,807 ------- Total Equity Funds (Cost $45,999) 51,753 ------- Fixed Income Funds (36.8%) STI Classic Investment Grade Bond Fund, Trust Class 1,694,503 17,555 STI Classic Short Term Bond Fund, Trust Class 443,271 4,393 STI Classic U.S. Government Securities Fund, Trust Class 1,025,059 10,538 ------- Total Fixed Income Funds (Cost $33,196) 32,486 ------- Money Market Fund (4.5%) STI Classic Prime Quality Money Market Fund, Trust Class 3,958,202 3,958 ------- Total Money Market Fund (Cost $3,958) 3,958 ------- Total Investments (100.0%) (Cost $83,153) 88,197 ------- Other Assets and Liabilities, Net (0.0%) (9) ------- Net Assets: Fund Shares of Trust Class (unlimited authorization -- no par value) based on 8,167,633 outstanding shares 81,210 Undistributed net investment income 185 Accumulated net realized gain on investments 1,749 Net unrealized appreciation on investments 5,044 ------- Total Net Assets 100.0% $88,188 ======= Net Asset Value, Offering and Redemption Price Per Share -- Trust Shares $ 10.80 ======= The accompanying notes are an integral part of the financial statements. For descriptions of abbreviations, please see page 67. 51 STATEMENT OF NET ASSETS - -------------------------------------------------------------------------------- STI CLASSIC EQUITY FUNDS May 31, 1999 Life Vision Growth and Income Portfolio - -------------------------------------------------------------------------------- Shares Value (000) - -------------------------------------------------------------------------------- Equity Funds (69.7%) STI Classic Capital Appreciation Fund, Trust Class 260,334 $ 4,327 STI Classic Growth & Income Fund, Trust Class 474,419 7,633 STI Classic Small Cap Growth Stock Fund, Trust Class 229,699 3,345 ------- Total Equity Funds (Cost $13,847) 15,305 ------- Fixed Income Funds (27.4%) STI Classic Investment Grade Bond Fund, Trust Class 321,684 3,333 STI Classic Short-Term Bond Fund, Trust Class 112,229 1,112 STI Classic U.S. Government Securities Fund, Trust Class 151,500 1,557 ------- Total Fixed Income Funds (Cost $6,115) 6,002 ------- Money Market Fund (3.0%) STI Classic Prime Quality Money Market Fund, Trust Class 655,867 656 ------- Total Money Market Fund (Cost $656) 656 ------- Total Investments (100.1%) (Cost $20,618) 21,963 ------- Other Assets and Liabilities, Net (-0.1%) (13) ------- Net Assets: Fund Shares of Trust Class (unlimited authorization -- no par value) based on 2,124,432 outstanding shares 20,565 Undistributed net investment income 2 Accumulated net realized gain on investments 38 Net unrealized appreciation on investments 1,345 ------ Total Net Assets 100.0% $21,950 ======= Net Asset Value, Offering and Redemption Price Per Share -- Trust Shares $ 10.33 ======= The accompanying notes are an integral part of the financial statements. For descriptions of abbreviations, please see page 67. 52 - -------------------------------------------------------------------------------- Life Vision Maximum Growth Portfolio - -------------------------------------------------------------------------------- Shares Value (000) - -------------------------------------------------------------------------------- Equity Funds (90.1%) STI Classic Capital Appreciation Fund, Trust Class 334,348 $ 5,557 STI Classic Growth & Income Fund, Trust Class 464,213 7,469 STI Classic Small Cap Growth Stock Fund, Trust Class 262,172 3,817 ------- Total Equity Funds (Cost $15,000) 16,843 ------- Money Market Fund (9.8%) STI Classic Prime Quality Money Market Fund, Trust Class 1,835,878 1,836 ------- Total Money Market Fund (Cost $1,836) 1,836 ------- Total Investments (99.9%) (Cost $16,836) 18,679 ------- Other Assets and Liabilities, Net (0.1%) 20 ------- Net Assets: Fund Shares of Trust Class (unlimited authorization -- no par value) based on 1,653,936 outstanding shares 16,789 Undistributed net investment income 5 Accumulated net realized gain on investments 62 Net unrealized appreciation on investments 1,843 ------- Total Net Assets 100.0% $18,699 ======= Net Asset Value, Offering and Redemption Price Per Share -- Trust Shares $ 11.31 ======= The accompanying notes are an integral part of the financial statements. For descriptions of abbreviations, please see page 67. 53 STATEMENT OF NET ASSETS - -------------------------------------------------------------------------------- STI CLASSIC EQUITY FUNDS May 31, 1999 Mid-Cap Equity Fund - -------------------------------------------------------------------------------- Shares Value (000) - -------------------------------------------------------------------------------- Common Stocks (90.2%) Basic Materials (1.1%) Stillwater Mining* 100,800 $ 3,219 -------- Capital Goods (6.2%) Allied Waste Industries* 438,700 8,171 Herman Miller 226,600 4,574 Watsco 263,800 5,095 -------- 17,840 -------- Consumer Cyclicals (14.4%) BJ's Wholesale Club* 211,300 5,494 Ethan Allen Interiors* 203,400 6,483 Family Dollar Stores 372,100 8,302 Just for Feet* 131,900 1,006 Men's Wearhouse* 364,850 9,315 Ralph Lauren* 212,200 4,377 Staff Leasing* 230,000 2,602 Tandy 48,600 4,009 -------- 41,588 -------- Consumer Staples (17.9%) Avis Rent A Car* 118,300 3,394 CBRL Group 96,900 1,678 Dial 64,000 2,000 Flowers Industries 247,600 5,509 Imax* 333,300 7,333 Interstate Bakeries 274,800 6,011 Keebler Foods* 76,200 2,553 McCormick 158,900 4,827 Nordstrom 53,100 1,885 Norrell 143,300 2,660 Papa John's International* 155,500 6,142 US Foodservice* 177,500 7,899 -------- 51,891 -------- Energy (6.4%) Anadarko Petroleum 84,800 3,180 Ensco International 115,900 2,057 Ensearch Exploration* 106,932 728 Global Marine* 144,800 2,036 Nabors Industries* 105,100 2,102 National-Oilwell* 51,300 619 Precision Drilling* 84,500 1,537 Smith International* 75,300 3,257 Tosco 35,000 895 Weatherford International* 65,000 2,145 -------- 18,556 -------- Finance (11.4%) Colonial Bancgroup 317,100 4,083 Dime Bancorp* 182,000 3,708 First Security 188,062 3,561 - -------------------------------------------------------------------------------- Shares Value (000) - -------------------------------------------------------------------------------- Finance--continued First Virginia Banks 73,700 $ 3,662 Hibernia, Cl A 298,500 4,254 North Fork Bancorporation 268,500 5,722 Peoples Heritage 207,700 3,894 Western Bancorp 96,700 3,934 -------- 32,818 -------- Health Care (12.5%) Acuson* 148,000 2,294 Centocor* 66,600 2,893 Forest Laboratories* 131,700 6,272 Jones Pharmaceuticals 100,300 3,567 Mylan Laboratories 218,700 5,550 Quintiles Transnational* 177,300 7,203 Renal Care* 129,700 3,599 Watson Pharmaceuticals* 121,300 4,647 -------- 36,025 -------- Technology (19.4%) ADC Telecommunications* 126,100 6,163 Ceridian* 167,900 5,541 Citrix Systems* 71,600 3,540 Fiserv* 158,850 5,957 Flextronics International* 69,200 3,460 Intuit* 35,900 2,921 New Era of Networks* 72,700 3,235 Nova* 127,430 2,835 Sanmina* 63,200 4,739 Sawtek* 165,800 6,570 Siebel Systems* 67,100 3,055 SkyTel Communications* 46,800 951 Teradyne* 136,800 7,225 -------- 56,192 -------- Transportation (0.9%) CNF Transportation 65,600 2,722 -------- Total Common Stocks (Cost $232,453) 260,851 -------- Preferred Stocks (2.2%) Communication Services (2.2%) Adelphia Communications, CV to 2.4555 shares* 16,700 3,673 Skytel Communications, CV to 1.1111 shares* 83,900 2,569 ------- Total Preferred Stocks (Cost $5,870) 6,242 -------- 54 - -------------------------------------------------------------------------------- Mid-Cap Equity Fund--concluded - -------------------------------------------------------------------------------- Face Amount (000) Value (000) - -------------------------------------------------------------------------------- Convertible Bonds (3.4%) Chiron, CV to 34.59 shares, Callable 08/16/99 @ 95.08 (B) 1.900%, 11/17/00 $2,500 $ 2,422 Citrix Systems, CV to 7.0306 shares, Callable 03/22/04 @ 45.96 (A) (B)* 0.000%, 03/22/19* 8,700 3,491 Sanmina, CV to 11.278 shares, Callable 05/06/02 @ 101.70 (B) 4.250%, 05/01/04 1,750 1,925 Sepracor, CV to 21.111 shares, Callable 02/18/01 @ 103.57 6.250%, 02/15/05 1,235 1,896 -------- Total Convertible Bonds (Cost $9,406) 9,734 -------- Repurchase Agreement (1.9%) Deutsche Bank 4.83%, dated 05/28/99, matures 06/01/99, repurchase price $5,633,784 (collateralized by U.S. Treasury Notes: total market value $5,743,770) (D) $5,631 5,631 -------- Total Repurchase Agreement (Cost $5,631) 5,631 -------- Total Investments (97.7%) (Cost $253,360) 282,458 -------- Other Assets and Liabilities, Net (2.3%) 6,631 -------- - -------------------------------------------------------------------------------- Value (000) - -------------------------------------------------------------------------------- Net Assets: Fund shares of the Trust Class (unlimited authorization -- no par value) based on 20,034,481 outstanding shares of beneficial interest $214,160 Fund shares of the Investor Class (unlimited authorization -- no par value) based on 1,538,670 outstanding shares of beneficial interest 17,043 Fund shares of the Flex Class (unlimited authorization -- no par value) based on 1,298,359 outstanding shares of beneficial interest 16,595 Undistributed net investment income 3 Accumulated net realized gain on investments 12,190 Net unrealized appreciation on investments 29,098 -------- Total Net Assets 100.0% $289,089 ======== Net Asset Value, Offering and Redemption Price Per Share -- Trust Shares $ 12.68 ======== Net Asset Value and Redemption Price Per Share -- Investor Shares $ 12.50 ======== Maximum Offering Price Per Share -- Investor Shares ($12.50 / 96.25%) $ 12.99 ======== Net Asset Value, Offering and Redemption Price Per Share -- Flex Shares (1) $ 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 67. 55 STATEMENT OF NET ASSETS - -------------------------------------------------------------------------------- STI CLASSIC EQUITY FUNDS May 31, 1999 Small Cap Equity Fund - -------------------------------------------------------------------------------- Shares Value (000) - -------------------------------------------------------------------------------- Common Stocks (89.4%) Basic Materials (11.0%) Calgon Carbon 554,300 $ 3,153 Carpenter Technology 244,300 6,963 Commonwealth Industries 138,700 1,491 HB Fuller 18,700 1,187 Lilly Industries, Cl A 362,400 6,908 Quixote 182,000 2,343 Texas Industries 246,400 8,963 Wausau-Mosinee Paper 232,700 4,189 -------- 35,197 -------- Capital Goods (13.4%) Ameron 18,100 779 American Woodmark 126,200 4,654 Belden 149,200 3,516 Furon 195,900 3,575 Gerber Scientific 208,500 4,874 Kaman 249,500 3,306 Kaydon 65,400 2,179 Lindberg 172,700 2,008 LSI Industries 182,400 4,053 Pittway, Cl A 162,200 4,562 Precision Castparts 157,700 6,387 Smith (A.O.) 137,000 3,339 -------- 43,232 -------- Consumer Cyclicals (19.5%) Angelica 141,200 2,392 Bush Industries 396,300 5,870 Chemed 99,000 3,211 Harman International 220,900 9,802 Heilig-Meyers 979,600 6,796 Interface 1,168,900 9,059 K2 282,400 2,806 Midas 101,500 3,178 Oshkosh Truck 92,900 3,693 Pep Boys 173,400 3,273 Pillowtex 245,100 3,983 Sturm Ruger 177,200 1,982 Tag Heuer International ADR 349,500 3,189 Toro 102,600 3,444 -------- 62,678 -------- Consumer Staples (20.3%) Bowne & Company 298,700 5,003 Ingles Markets, Cl A 237,000 2,903 Norrell 825,800 15,329 Pittston Services Group 44,000 1,254 Polaroid 605,700 12,795 Smucker (J.M.), Cl B 58,200 1,018 Standard Register 228,300 6,792 - -------------------------------------------------------------------------------- Shares Value (000) - -------------------------------------------------------------------------------- Consumer Staples--continued Universal Foods 335,700 $ 7,700 WD-40 107,900 2,772 Wolverine World Wide 537,100 7,251 York Group 320,200 2,482 -------- 65,299 -------- Energy (0.7%) Fletcher Challenge Energy ADR 95,700 2,321 -------- Financials (8.3%) Administradora de Fondos de Pensiones Provida ADR 118,300 2,410 Banco Latinamericano de Exportaciones 78,700 2,238 Chicago Title 107,000 3,939 Downey Financial 74,600 1,641 Klamath First Bancorp 130,100 2,065 Scottish Annuity & Life 326,500 3,183 Seacoast Banking of Florida 59,000 1,947 Stirling Cooke Brown Holdings 116,500 481 Student Loan 97,300 3,886 West Coast Bancorp 128,800 2,246 Westerfed Financial 159,200 2,657 -------- 26,693 -------- Health Care (6.3%) Block Drug, Cl A 70,502 2,626 Medeva PLC ADR 570,900 4,139 Mentor 651,600 10,385 Vital Signs 154,100 2,957 -------- 20,107 -------- Technology (1.8%) Innovex 222,300 2,973 Pioneer-Standard Electronics 289,000 2,836 -------- 5,809 -------- Transportation (6.0%) Bandag 176,200 6,068 Knightsbridge Tankers Limited 176,100 3,170 Pittston Burlington 26,000 281 Sea Containers 259,600 8,761 Western Star Truck Holdings 53,600 884 -------- 19,164 -------- Utilities (2.1%) NUI 182,000 4,527 United Water Resources 108,400 2,358 -------- 6,885 -------- Total Common Stocks (Cost $303,154) 287,385 -------- 56 - -------------------------------------------------------------------------------- - -------------------------------------------------------------------------------- Face Amount (000) Value (000) - -------------------------------------------------------------------------------- Repurchase Agreement (14.2%) Deutsche Bank 4.83%, dated 05/28/99, matures 06/01/99, repurchase price $47,819,808 (collateralized by FHLMC obligation: total market value $46,771,137) (D) $ 45,795 $ 45,795 -------- Total Repurchase Agreement (Cost $45,795) 45,795 -------- Total Investments (103.6%) (Cost $348,949) 333,180 -------- Other Assets and Liabilities, Net (-3.6%) (11,731) -------- Net Assets: Fund shares of the Trust Class (unlimited authorization -- no par value) based on 31,125,084 outstanding shares of beneficial interest 356,281 Fund shares of the Flex Class (unlimited authorization -- no par value) based on 2,016,491 outstanding shares of beneficial interest 28,964 Undistributed net investment income 587 Accumulated net realized loss on investments (48,614) Net unrealized depreciation on investments (15,769) -------- Total Net Assets 100.0% $321,449 ======== Net Asset Value, Offering and Redemption Price Per Share -- Trust Shares $ 9.70 ======== Net Asset Value, Offering and Redemption Price Per Share -- Flex Shares (1) $ 9.65 ======== (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 67. 57 STATEMENT OF NET ASSETS - -------------------------------------------------------------------------------- STI CLASSIC EQUITY FUNDS May 31, 1999 Small Cap Growth Stock Fund - -------------------------------------------------------------------------------- Shares Value (000) - -------------------------------------------------------------------------------- Common Stocks (99.6%) Basic Materials (6.9%) Alpha Industries* 23,000 $ 801 Astec Industries* 23,660 884 Bel Fuse, Cl A* 25,800 851 Boise Cascade 37,000 1,466 Centex Construction Products 23,020 826 Florida Rock Industries 10,000 399 Granite Construction 24,000 673 Jacobs Engineering Group* 10,300 383 LTV 45,000 276 NCI Building Systems* 47,570 1,201 Solutia 35,000 785 Stillwater Mining* 36,500 1,166 US Liquids* 20,900 376 U.S. Plastics Lumber 90,000 816 -------- 10,903 -------- Capital Goods (15.1%) AFC Cable Systems* 37,085 1,275 American Woodmark 18,000 664 Anaren Microwave* 38,400 823 Avondale Industries* 20,000 730 Borg-Warner Automotive 13,000 721 Briggs & Stratton 11,800 737 Concord Communications* 21,000 934 Corsair Communications* 20,000 91 Crane 15,000 451 DM Management* 25,000 403 Dycom Industry* 29,475 1,422 Elcor 19,130 772 Genesis Microchip* 58,100 1,053 Intervoice* 93,000 1,035 Kellstrom Industries* 14,000 254 Manitowoc 20,722 705 Miami Computer Supply* 39,550 744 Mobile Mini* 68,000 897 Motivepower Industries* 27,150 460 National R.V. Holdings* 31,470 808 Navistar International* 30,000 1,481 Simpson Manufacturing* 19,500 865 Sps Technologies* 12,070 511 Syncor International* 32,000 1,088 Transwitch* 27,500 1,272 UNIFAB International* 49,000 505 United Stationers* 33,000 619 Universal Corp. 15,000 392 USG 7,775 440 Varian Medical Associates* 15,000 282 Varlen 39,176 1,479 -------- 23,913 -------- - -------------------------------------------------------------------------------- Shares Value (000) - -------------------------------------------------------------------------------- Communication Services (3.1%) Broadvision* 20,000 $ 1,040 Flashnet Communications* 11,000 217 Genesys Telecom Labs* 52,000 1,202 Gilat Communications Limited* 54,500 804 Polycom* 61,695 1,581 -------- 4,844 -------- Consumer Cyclicals (25.1%) American Eagle Outfitters* 27,000 1,102 Analytical Surveys* 25,500 625 Ann Taylor Stores* 26,500 1,144 Arvin Industries 23,000 903 Brinker International* 22,985 645 Buckle* 54,865 1,519 CDW Computer Centers* 19,000 826 Centex 18,000 667 Chicos* 50,000 1,134 Claire's Stores 35,000 1,024 Consolidated Graphics* 16,310 752 Cost Plus* 25,000 934 Craftmade International 46,640 624 Cutter & Buck* 25,760 763 DR Horton 75,800 1,289 Delia's* 19,000 252 Dollar Tree Stores* 29,000 975 Empi* 12,000 294 First Years 24,010 384 Foodmaker* 20,000 540 Fossil* 32,530 1,364 Gentex* 27,000 811 Jakks Pacific* 30,000 831 K-Swiss, Cl A 46,740 2,682 La-Z-Boy 26,800 533 Labor Ready* 29,500 1,051 Liberty Property Trust 25,270 610 Mohawk Industries* 36,115 1,052 Monaco Coach* 37,510 1,125 Movado Group 9,175 221 Oshkosh B'gosh, Cl A 16,655 327 Oshkosh Truck 6,000 238 Pre Paid Legal Services* 10,000 266 Programmer's Paradise* 8,000 86 Quiksilver* 34,000 969 Racing Champions* 64,000 1,096 Rare Hospitality International* 24,000 552 Salton/Maxim Housewares* 21,500 919 Southdown 24,900 1,578 Standard Pacific 54,145 711 Steven Madden Ltd* 81,365 870 Superior Industries International 27,000 673 Tarrant Apparel Group* 33,330 1,010 58 - -------------------------------------------------------------------------------- - -------------------------------------------------------------------------------- Shares Value (000) - -------------------------------------------------------------------------------- Consumer Cyclicals--continued Triumph Group* 23,395 $ 716 Urs* 28,325 697 Wet Seal, Cl A* 17,000 472 Winnebago Industries 54,000 891 Zale* 28,000 1,080 -------- 39,827 -------- Consumer Staples (4.8%) Canandaigua Wine, Cl A* 13,100 652 Earthgrains 20,000 469 Flowers Industries 44,600 992 Mail-Well* 65,000 963 Papa John's International* 38,900 1,537 Rent-A-Center* 35,000 903 Smithfield Foods* 43,000 1,148 Suiza Foods* 25,000 916 -------- 7,580 -------- Energy (2.3%) Eagle Geophysical* 1,280 4 Oceaneering International* 50,000 772 Santa Fe Snyder Corp* 80,000 680 Seacor Holdings* 3,000 149 Seitel* 40,000 632 Transocean Offshore 61,800 1,522 -------- 3,759 -------- Financials (7.6%) American Heritage 39,300 914 Amerin* 21,057 566 Annuity & Life Re Holdings 12,000 309 Bank of Commerce/San Diego 16,000 312 Corporate Executive Board* 17,000 498 Cullen/Frost Bankers 9,550 537 Dime Community Bancorp 35,200 779 Doral Financial 42,000 709 E.W. Blanch Holdings 16,900 1,082 Enhance Financial Services Group 30,000 587 Financial Security Assurance Holdings 7,385 419 Fremont General 55,000 1,165 Investment Technology Group 16,880 748 NVR* 13,975 673 PFF Bancorp* 32,000 580 Pilgrim America Cap Corp* 19,600 390 Protective Life 38,000 1,375 Ryland Group 16,165 450 -------- 12,093 -------- Health Care (8.2%) Alpharma, Cl A 24,000 640 Barr Laboratories* 18,475 609 - -------------------------------------------------------------------------------- Shares Value (000) - -------------------------------------------------------------------------------- Biomatrix* 28,000 $ 857 Capital Senior Living* 70,000 761 Colorado Medtech* 65,340 923 D&K Healthcare Resources* 24,400 576 Interim Services* 35,000 763 Ivax* 40,000 537 Laser Vision Centers* 15,000 855 Liposome* 78,000 1,116 Optical Coating Laboratories 3,000 195 Osteotech* 23,917 849 Rehabcare Group* 33,000 710 Resmed* 43,000 1,207 Roberts Pharmaceutical* 63,000 1,197 Steris* 25,000 414 Trigon Healthcare* 15,000 572 Varian 15,000 150 -------- 12,931 -------- Technology (19.1%) American Management Systems* 25,000 794 Business Objects ADR* 30,000 862 Checkpoint Software* 20,000 885 Ciber* 52,230 1,120 Commscope* 50,000 1,313 Computer Network Technology* 29,000 732 Cordant Technologies 18,000 873 Cybex Computer Products* 61,944 1,405 Electronic Arts* 16,000 783 Fair Isaac 5,000 164 Flextronics International* 7,000 350 4front Technologies* 60,000 600 Henry (Jack) & Associates 7,000 247 Herley Industries* 52,000 673 Hyperion Telecommunications, Cl A* 60,000 1,013 Insight Enterprises* 38,557 978 Javelin Systems* 60,000 776 Kronos* 29,200 1,081 Landmark Systems* 24,000 231 Mastech* 62,900 1,207 Metamor Worldwide* 27,000 739 Micros Systems* 40,000 1,250 Overland Data* 65,000 423 Pinnacle Systems* 19,000 984 Perot Systems, Cl A* 14,800 401 Powerhouse Technologies* 15,000 278 Progress Software* 66,930 1,744 Quantum* 20,000 396 Sunquest* 44,000 578 59 STATEMENT OF NET ASSETS - -------------------------------------------------------------------------------- STI CLASSIC EQUITY FUNDS May 31, 1999 Small Cap Growth Stock Fund--concluded - -------------------------------------------------------------------------------- Shares Value (000) - -------------------------------------------------------------------------------- Technology--continued Sybase* 55,000 $ 533 Sykes Enterprises* 10,435 325 T-HQ* 46,290 1,091 Talk.com* 25,000 259 Technomatrix Technologies* 51,000 854 Timberline Software 54,000 918 USWeb* 25,000 634 Varian Semiconductor Equipment* 15,000 187 Xircom* 52,000 1,313 Zomax* 41,000 1,081 ------- 30,075 ------- Transportation (6.2%) Aeroflex* 61,000 888 Alaska Airgroup* 10,000 415 American Freightways* 82,500 1,444 Amtran Inc* 14,525 341 Atlas Air* 48,000 1,290 Eagle USA Airfreight* 9,000 424 Forward Air* 10,000 274 Frontier Airlines* 62,000 961 Landstar System* 10,000 376 Skywest 38,680 899 Swift Transportation* 45,000 823 USFreightways 43,300 1,706 ------- 9,841 ------- Utilities (1.2%) El Paso Electric* 80,000 685 Kinder Morgan Energy Partners 18,000 671 Public Service of North Carolina 5,000 145 Public Service of New Mexico 20,000 415 ------- 1,916 ------- Total Common Stocks (Cost $144,302) 157,682 ------- Repurchase Agreement (2.9%) Morgan Stanley 4.80%, dated 05/28/99, matures 06/01/99, repurchase price $4,658,357 (collateralized by various FNMA obligations: total market value $4,767,582) (D) $ 4,656 4,656 ------- Total Repurchase Agreement (Cost $4,656) 4,656 ------- Total Investments (102.5%) (Cost $148,958) 162,338 ------- Other Assets and Liabilities, Net (-2.5%) (3,890) ------- - -------------------------------------------------------------------------------- Value (000) - -------------------------------------------------------------------------------- Net Assets: Fund shares of the Trust Class (unlimited authorization -- no par value) based on 10,464,063 outstanding shares of beneficial interest $137,985 Fund shares of the Flex Class (unlimited authorization -- no par value) based on 425,752 outstanding shares of beneficial interest 6,037 Accumulated net realized gain on investments 1,046 Net unrealized appreciation on investments 13,380 -------- Total Net Assets 100.0% $158,448 ======== Net Asset Value, Offering and Redemption Price Per Share -- Trust Shares $ 14.55 ======== Net Asset Value, Offering and Redemption Price Per Share -- Flex Shares (1) $ 14.46 ======== (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 67. 60 - -------------------------------------------------------------------------------- Sunbelt Equity Fund - -------------------------------------------------------------------------------- Shares Value (000) - -------------------------------------------------------------------------------- Common Stocks (98.0%) Capital Goods (11.9%) Artesyn Technologies* 122,296 $ 2,584 Blount International 133,355 3,717 Kellstrom Industries* 169,924 3,080 Maverick Tube* 175,995 2,277 Miller Industries* 435,896 2,098 National Service Industries 41,874 1,541 Palm Harbor Homes* 150,106 3,227 Sensormatic Electronics 104,358 1,396 Tristar Aerospace* 80,923 749 UNIFAB International* 331,835 3,422 Watsco 106,090 2,049 -------- 26,140 -------- Communication Services (3.7%) Alltel 40,176 2,880 MCI WorldCom* 39,356 3,399 Superior TeleCom 58,516 1,734 -------- 8,013 -------- Consumer Cyclicals (17.8%) AHL Services* 118,826 3,149 Central Parking 40,931 1,330 Circuit City 58,725 4,217 Dollar General 75,487 2,005 Family Dollar Stores 124,318 2,774 Lowe's Companies 63,365 3,291 Modis Professional Services* 189,582 2,796 O'Charleys* 157,453 2,057 Pier 1 Imports 156,478 1,731 Policy Management Systems* 66,492 2,419 Quest Education* 211,639 2,381 Rare Hospitality International* 77,431 1,781 Tandy 64,310 5,306 Tractor Supply* 44,927 1,337 Trex* 48,519 1,064 V.F 27,688 1,274 -------- 38,912 -------- Consumer Staples (6.1%) Flowers Industries 108,415 2,412 Outback Steakhouse* 113,665 4,078 Sonic* 247,259 6,807 -------- 13,297 -------- Energy (18.4%) Anadarko Petroleum 117,354 4,401 BJ Services* 179,297 4,942 Core Laboratories N.V.* 245,141 3,830 Diamond Offshore Drilling 128,263 3,495 Global Industries* 662,783 7,373 - -------------------------------------------------------------------------------- Shares Value (000) - -------------------------------------------------------------------------------- Energy--continued Nuevo Energy* 140,422 $ 2,141 Oceaneering International* 111,937 1,728 Stone Energy* 185,441 6,989 Transocean Offshore 124,176 3,058 World Fuel Services 174,223 2,254 -------- 40,211 -------- Financials (15.9%) Capital One Financial 26,774 4,035 CCB Financial 60,942 3,287 Cullen/Frost Bankers 26,492 1,490 Fairfield Communities* 565,607 8,979 First Tennessee National 58,712 2,418 Nova* 272,816 6,070 Profit Recovery Group International* 146,974 5,410 Texas Regional Bancshares, Cl A 42,200 1,145 Triad Guaranty* 129,583 1,976 -------- 34,810 -------- Health Care (3.1%) Cryolife* 274,510 3,397 Orthodontic Centers of America* 66,962 808 Rexall Sundown* 145,521 2,483 -------- 6,688 -------- Technology (17.7%) Acxiom* 155,822 4,207 Benchmark Electronics* 214,785 6,444 Cybex Computer Products* 127,104 2,884 Datastream Systems* 188,213 2,282 Dell Computer* 65,224 2,246 National Data 48,242 2,270 National Instruments* 29,351 1,117 SCB Computer Technology* 795,788 5,123 Scientific-Atlanta 65,225 2,303 Sterling Commerce* 33,867 1,317 Sterling Software* 53,374 1,298 Sykes Enterprises* 160,921 5,009 Texas Instruments 20,939 2,290 -------- 38,790 -------- Transportation (3.4%) Covenant Transportation, Cl A* 114,180 1,370 Hunt J B Transportation Services 93,873 1,584 Union Pacific 48,129 2,746 USA Truck* 186,915 1,706 -------- 7,406 -------- Total Common Stocks (Cost $166,276) 214,267 -------- 61 STATEMENT OF NET ASSETS - -------------------------------------------------------------------------------- STI CLASSIC EQUITY FUNDS May 31, 1999 Sunbelt Equity Fund--concluded - -------------------------------------------------------------------------------- Face Amount (000) Value (000) - -------------------------------------------------------------------------------- Repurchase Agreement (0.1%) Deutsche Bank 4.78%, dated 05/28/99, matures 06/01/99, repurchase price $319,543 (collateralized by various U.S. Treasury obligations: total market value $326,219) (D) $319 $ 319 -------- Total Repurchase Agreement (Cost $319) 319 -------- Total Investments (98.1%) (Cost $166,595) 214,586 -------- Other Assets and Liabilities, Net (1.9%) 3,973 -------- Net Assets: Fund shares of the Trust Class (unlimited authorization -- no par value) based on 17,784,188 outstanding shares of beneficial interest 166,929 Fund shares of the Investor Class (unlimited authorization -- no par value) based on 1,574,615 outstanding shares of beneficial interest 14,344 Fund shares of the Flex Class (unlimited authorization -- no par value) based on 416,394 outstanding shares of beneficial interest 5,998 Accumulated net realized loss on investments (16,703) Net unrealized appreciation on investments 47,991 -------- Total Net Assets 100.0% $218,559 ======== Net Asset Value, Offering and Redemption Price Per Share -- Trust Shares $ 11.09 ======== Net Asset Value and Redemption Price Per Share -- Investor Shares $ 10.76 ======== Maximum Offering Price Per Share -- Investor Shares ($10.76 / 96.25%) $ 11.18 ======== Net Asset Value, Offering and Redemption Price Per Share -- Flex Shares (1) $ 10.55 ======== (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 67. 62 - -------------------------------------------------------------------------------- Tax Sensitive Growth Stock Fund - -------------------------------------------------------------------------------- Shares Value (000) - -------------------------------------------------------------------------------- Common Stocks (93.7%) Basic Materials (2.5%) Alcoa 57,773 $ 3,178 E. I. DuPont de Nemours 64,744 4,237 ------- 7,415 ------- Capital Goods (8.6%) Applied Materials* 88,967 4,893 Caterpillar 88,957 4,882 Delphi Automotive Systems 15,267 300 General Electric 80,766 8,213 Minnesota Mining & Manufacturing 42,062 3,607 United Technologies 63,618 3,948 ------- 25,843 ------- Communication Services (6.2%) AT&T 103,622 5,751 Bell Atlantic 25,476 1,395 BellSouth 31,319 1,478 GTE 43,773 2,760 MCI WorldCom* 27,295 2,358 SBC Communications 39,059 1,997 Sprint 23,376 2,636 ------- 18,375 ------- Consumer Cyclicals (8.6%) Dollar General 137,467 3,651 Ford Motor 35,064 2,001 Gap 72,295 4,523 General Motors 21,844 1,507 Home Depot 58,474 3,326 Office Depot* 98,208 2,050 Service International 109,167 2,095 Wal-Mart Stores 131,383 5,600 Walt Disney 35,447 1,032 ------- 25,785 ------- Consumer Staples (7.9%) Coca-Cola 75,979 5,190 Gillette 52,774 2,692 McDonald's 42,707 1,644 Paychex 74,346 2,203 PepsiCo 69,874 2,502 Philip Morris 110,504 4,261 Procter & Gamble 53,764 5,020 ------- 23,512 ------- Energy (6.6%) Chevron 32,177 2,982 Exxon 71,855 5,739 Halliburton 83,077 3,437 Mobil 24,985 2,530 - -------------------------------------------------------------------------------- Shares Value (000) - -------------------------------------------------------------------------------- Energy--continued Royal Dutch Petroleum 37,010 $ 2,093 Schlumberger 50,696 3,051 ------- 19,832 ------- Financials (15.8%) American Express 30,914 3,746 American International Group 32,334 3,696 Bank of America 46,356 2,999 Bank One 68,298 3,863 Charles Schwab 52,251 5,529 Chase Manhattan Bank 41,776 3,029 Citigroup 66,640 4,415 FNMA 77,975 5,302 Household International 137,625 5,970 JP Morgan 40,206 5,601 Wells Fargo 82,150 3,286 ------- 47,436 ------- Health Care (11.5%) Abbott Laboratories 38,921 1,759 American Home Products 39,026 2,249 Bristol-Myers Squibb 52,745 3,620 Eli Lilly 28,030 2,002 Healthsouth* 164,032 2,194 Johnson & Johnson 38,481 3,564 Medtronic 56,690 4,025 Merck 83,958 5,667 Pfizer 44,537 4,765 Schering Plough 37,119 1,673 Warner Lambert 48,834 3,028 ------- 34,546 ------- Technology (26.0%) Allied Signal 102,274 5,938 Cisco Systems* 78,243 8,529 Computer Associates 97,902 4,632 Compuware* 221,437 6,878 Dell Computer* 136,541 4,702 EMC* 52,150 5,195 Hewlett Packard 31,302 2,952 IBM 62,790 7,303 Intel 133,336 7,209 Linear Technology 49,326 2,614 Lucent Technologies 71,226 4,051 Microsoft* 129,623 10,459 Monsanto 58,511 2,428 Oracle* 40,000 993 Texas Instruments 36,414 3,983 ------- 77,866 ------- Total Common Stocks (Cost $220,279) 280,610 ------- 63 STATEMENT OF NET ASSETS - -------------------------------------------------------------------------------- STI CLASSIC EQUITY FUNDS May 31, 1999 Tax Sensitive Growth Stock Fund--concluded - -------------------------------------------------------------------------------- Face Amount (000) Value (000) - -------------------------------------------------------------------------------- Repurchase Agreement (8.6%) Morgan Stanley 4.80%, dated 05/28/99, matures 06/01/99, repurchase price $25,723,692 (collateralized by FNMA and FHLMC obligations: total market value $ 26,240,236) (D) $ 25,710 $ 25,710 -------- Total Repurchase Agreement (Cost $25,710) 25,710 -------- Total Investments (102.3%) (Cost $245,989) $306,320 -------- Other Assets and Liabilities, Net (-2.3%) (6,902) -------- Net Assets: Fund shares of the Trust Class (unlimited authorization -- no par value) based on 7,462,354 outstanding shares of beneficial interest 158,983 Fund shares of the Flex Class (unlimited authorization -- no par value) based on 2,541,837 outstanding shares of beneficial interest 75,210 Accumulated net realized gain on investments 4,894 Net unrealized appreciation on investments 60,331 -------- Total Net Assets 100.0% $299,418 ======== Net Asset Value, Offering and Redemption Price Per Share -- Trust Shares $ 29.96 ======== Net Asset Value, Offering and Redemption Price Per Share -- Flex Shares (1) $ 29.85 ======== (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 67. 64 - -------------------------------------------------------------------------------- Value Income Stock Fund - -------------------------------------------------------------------------------- Shares Value (000) - -------------------------------------------------------------------------------- Common Stocks (92.0%) Basic Materials (10.7%) Allegheny Teledyne 1,143,400 $ 23,368 B.F. Goodrich 663,400 26,868 Boise Cascade 708,000 28,054 Consolidated Papers 477,500 13,251 DuPont (EI) de Nemours 297,800 19,487 Engelhard 737,300 14,930 Hercules 532,800 18,615 Nalco Chemical 403,400 13,514 Reynolds Metals 307,000 16,329 Sonoco Products 751,030 18,776 Witco Chemical 277,800 4,861 Worthington Industries 776,800 9,953 --------- 208,006 --------- Capital Goods (14.7%) Cooper Industries 646,100 32,022 Corning 157,600 8,609 Crown Cork & Seal 616,300 19,336 Dana 385,000 19,876 Emerson Electric 430,700 27,511 Harris 427,000 16,146 Hubbell, Cl B 394,300 16,511 Minnesota Mining & Manufacturing 258,800 22,192 National Service Industries 575,700 21,193 Northrop Grumman 491,000 33,142 Pall 855,400 17,161 Raytheon, Cl B 201,500 13,715 Tenneco 686,900 16,013 Thomas & Betts 557,900 23,885 --------- 287,312 --------- Communication Services (3.3%) Alltel 206,700 14,818 GTE 781,600 49,290 --------- 64,108 --------- Consumer Cyclicals (11.1%) Albertson's 399,200 21,357 American Greetings, Cl A 516,200 14,776 Genuine Parts 607,600 20,468 H & R Block 648,900 31,269 J.C. Penney 757,300 39,143 Masco 1,070,700 30,582 Ryder 580,000 13,920 Stanley Works 656,300 21,371 TRW 459,000 22,979 --------- 215,865 --------- - -------------------------------------------------------------------------------- Shares Value (000) - -------------------------------------------------------------------------------- Consumer Staples (14.0%) Bestfoods 610,800 $ 30,540 ConAgra 1,526,300 39,779 Dean Foods 508,400 19,065 Flowers Industries 230,900 5,137 Food Lion, Cl A 894,000 9,890 Fort James Corp. 388,300 14,221 Fortune Brands 526,400 21,517 H.J. Heinz 407,000 19,663 International Flavors & Fragrances 697,700 28,693 Kimberly Clark 632,200 37,102 McCormick 467,800 14,209 Newell Rubbermaid 479,400 19,416 Wallace Computer Services 578,400 13,267 --------- 272,499 --------- Energy (6.5%) Atlantic Richfield 281,300 23,541 Baker Hughes 488,700 15,211 Kerr-McGee 566,700 26,352 Murphy Oil 481,400 23,619 Texaco 234,800 15,379 Unocal 563,000 22,379 --------- 126,481 --------- Financials (17.1%) American Financial Group 402,300 13,578 American General 275,700 19,919 Bank of America 626,200 40,507 Bank One 669,700 37,880 BankBoston 560,600 26,558 Cigna 306,700 28,600 First American of Tennessee 369,700 15,088 Hibernia, Cl A 838,800 11,953 KeyCorp 721,900 25,086 Paine Webber Group 281,800 13,245 PNC Bank 489,600 28,030 Safeco 428,600 18,832 Summit Bancorp 553,000 22,638 Transamerica 252,900 18,557 Union Planters 330,664 13,661 --------- 334,132 --------- Health Care (8.1%) Abbott Laboratories 863,600 39,024 American Home Products 684,700 39,456 Baxter International 749,100 48,364 Bristol-Myers Squibb 286,100 19,634 Pharmacia Upjohn ADR 212,800 11,797 --------- 158,275 --------- 65 STATEMENT OF NET ASSETS - -------------------------------------------------------------------------------- STI CLASSIC EQUITY FUNDS May 31, 1999 Value Income Stock Fund--concluded - -------------------------------------------------------------------------------- Shares/Face Amount (000) Value (000) - -------------------------------------------------------------------------------- Technology (3.1%) EG&G 693,500 $ 20,588 Xerox 731,000 41,073 --------- 61,661 --------- Utilities (3.4%) Consolidated Natural Gas 213,100 12,666 GPU 429,900 18,728 Questar 843,700 16,083 Scana 733,100 19,565 --------- 67,042 --------- Total Common Stocks (Cost $1,667,740) 1,795,381 --------- Repurchase Agreements (7.5%) Deutsche Bank 4.83%, dated 05/28/99, matures 06/01/99, repurchase price $76,618,190 (collateralized by FHLMC obligation: total market value $78,108,636) (D) $ 76,577 76,577 Greenwich 4.83%, dated 05/28/99, matures 06/01/99, repurchase price $70,371,544 (collateralized by various FNMA obligations: total market value $71,740,804) (D) 70,334 70,334 --------- Total Repurchase Agreements (Cost $146,911) 146,911 --------- Total Investments (99.5%) (Cost $1,814,651) 1,942,292 --------- Other Assets and Liabilities, Net (0.5%) 8,971 --------- - -------------------------------------------------------------------------------- Value (000) - -------------------------------------------------------------------------------- Net Assets: Fund shares of the Trust Class (unlimited authorization -- no par value) based on 123,726,029 outstanding shares of beneficial interest $1,337,495 Fund shares of the Investor Class (unlimited authorization -- no par value) based on 15,170,194 outstanding shares of beneficial interest 171,095 Fund shares of the Flex Class (unlimited authorization -- no par value) based on 13,167,127 outstanding shares of beneficial interest 173,568 Undistributed net investment income 4,654 Accumulated net realized gain on investments 136,810 Net unrealized appreciation on investments 127,641 ---------- Total Net Assets 100.0% $1,951,263 ========== Net Asset Value, Offering and Redemption Price Per Share -- Trust Shares $ 12.85 ========== Net Asset Value and Redemption Price Per Share -- Investor Shares $ 12.81 ========== Maximum Offering Price Per Share -- Investor Shares ($12.81 / 96.25%) $ 13.31 ========== Net Asset Value, Offering and Redemption Price Per Share -- Flex Shares (1) $ 12.68 ========== (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 67. 66 - -------------------------------------------------------------------------------- Key to Abbreviations used in the Statement of Net Assets ADR American Depository Receipt Cl Class CV Convertible Security F Foreign Registry Shares FHLMC Federal Home Loan Mortgage Corporation FNMA Federal National Mortgage Association GDR Global Depository Receipt GNMA Government National Mortgage Association MTN Medium Term Note PLC Public Limited Corporation * Non-income producing security (A) Zero Coupon Bond (B) Private Placement Security (C) Adjustable rate security. The rate reported on the Statement of Net Assets is the rate in effect on May 31, 1999. (D) Tri-Party Repurchase Agreement 67 This page left intentionally blank 68
STATEMENT OF ASSETS AND LIABILITIES (000) - ----------------------------------------------------------------------------------------------------- STI CLASSIC INTERNATIONAL EQUITY INDEX FUND For The Year Ended May 31, 1999 ------------- International Equity Index Fund ------------- Assets: Investments at Market Value (Cost $65,567) ..................................... $ 79,964 Cash and Foreign Currency ...................................................... 15,055 Receivable for Investment Securities Sold ...................................... 11 Receivable for Portfolio Shares Purchased ...................................... 42 Other Assets ................................................................... 396 -------- Total Assets ................................................................... 95,468 -------- Liabilities: Payable for Investment Securities Purchased .................................... 14,299 Payable for Portfolio Shares Redeemed .......................................... 21 Accrued Expenses ............................................................... 71 Other Liabilities .............................................................. 87 -------- Total Liabilities .............................................................. 14,478 -------- Net Assets: Fund Shares of the Trust Class (unlimited authorization -- no par value) based on 6,315,153 outstanding shares of beneficial interest ............... 61,695 Fund Shares of the Investor Class (unlimited authorization -- no par value) based on 419,449 outstanding shares of beneficial interest ................. 3,827 Fund Shares of the Flex Class (unlimited authorization -- no par value) based on 124,930 outstanding shares of beneficial interest ................. 1,410 Distributions in excess of net investment income ............................... (365) Accumulated net realized gain on investments ................................... 119 Net unrealized appreciation on investments ..................................... 14,397 Net unrealized depreciation foreign currency and translation of other assets and liabilities in foreign currency investments .................................. (93) -------- Total Net Assets ............................................................... $ 80,990 ======== Net Asset Value, Offering and Redemption Price Per Share -- Trust Shares .......... $ 11.82 ======== Net Asset Value, Offering and Redemption Price Per Share -- Investor Shares ....... $ 11.70 ======== Maximum Offering Price Per Share -- Investor Shares ($11.70 / 96.25%) ............. $ 12.16 ======== Net Asset Value, Offering and Redemption Price Per Share -- Flex Shares (1) ....... $ 11.73 =======-
(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. 69 STATEMENT OF OPERATIONS (000) - -------------------------------------------------------------------------------- STI CLASSIC EQUITY FUNDS For The Periods Ended May 31, and November 30,
Capital Balanced Appreciation Fund Fund ----------- ----------- 06/01/98- 06/01/98- 05/31/99 05/31/99 ----------- ----------- Income: Interest Income ............................................................ $ 6,819 $ 21,689 Dividend Income ............................................................ 1,651 8,356 Less: Foreign Taxes Withheld ............................................... -- -- --------- --------- Total Investment Income .................................................... 8,470 30,045 --------- --------- Expenses: Investment Advisory Fees ................................................... 2,546 23,291 Less: Investment Advisory Fees Waived/Reimbursed ........................... (248) (1,878) Administrator Fees ......................................................... 208 1,575 Administrator Fees Waived .................................................. -- -- Transfer Agent Fees -- Trust Shares ........................................ 14 16 Transfer Agent Fees -- Investor Shares ..................................... 11 46 Transfer Agent Fees -- Flex Shares ......................................... 42 153 Transfer Agent Out of Pocket Fees .......................................... 26 208 Printing Expenses .......................................................... 15 103 Custody Fees ............................................................... 6 53 Professional Fees .......................................................... 13 111 Trustee Fees ............................................................... 3 25 Registration Fees .......................................................... 7 131 Distribution Fees -- Trust Shares .......................................... -- -- Less: Distribution Fees Waived -- Trust Shares ............................. -- -- Distribution Fees -- Investor Shares ....................................... 32 1,916 Less: Distribution Fees Waived -- Investor Shares .......................... (7) (127) Distribution Fees -- Flex Shares ........................................... 441 1,276 Less: Distribution Fees Waived -- Flex Shares .............................. (14) -- Insurance and Other Fees ................................................... 6 59 Amortization of Deferred Organization Costs ................................ -- -- --------- --------- Total Expenses ............................................................. 3,101 26,958 --------- --------- Net Investment Income ...................................................... 5,369 3,087 --------- --------- Net Realized and Unrealized Gain (Loss) on Investments: Capital Gain Received from Investments ..................................... -- -- Net Realized Gain (Loss) on Securities Sold ................................ 9,690 166,440 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 ........ 11,063 151,103 --------- --------- Total Net Realized and Unrealized Gain (Loss) on Investments ............... 20,753 317,543 --------- --------- Net Increase (Decrease) in Net Assets from Operations ...................... $ 26,122 $ 320,630 ========= ========= Amounts designated as "--" are either $0 or round to $0.
70
- -------------------------------------------------------------------------------- Emerging Growth and International Markets Income Equity Equity Fund Fund Fund ----------- ---------------------- ----------- 06/01/98- 12/01/98- 12/01/97- 06/01/98- 05/31/99 05/31/99 11/30/98 05/31/99 ----------- ---------------------- ----------- Income: Interest Income ............................................................ $ 120 $ 899 $ 1,915 $ 1,783 Dividend Income ............................................................ 875 4,590 8,628 12,210 Less: Foreign Taxes Withheld ............................................... (81) -- -- (822) --------- --------- --------- --------- Total Investment Income .................................................... 914 5,489 10,543 13,171 --------- --------- --------- --------- Expenses: Investment Advisory Fees ................................................... 354 2,558 4,749 7,655 Less: Investment Advisory Fees Waived/Reimbursed ........................... (11) -- -- (308) Administrator Fees ......................................................... 21 493 950 476 Administrator Fees Waived .................................................. -- -- -- -- Transfer Agent Fees -- Trust Shares ........................................ 16 165 317 14 Transfer Agent Fees -- Investor Shares ..................................... -- 2 3 15 Transfer Agent Fees -- Flex Shares ......................................... -- -- -- 65 Transfer Agent Out of Pocket Fees .......................................... 2 2 2 82 Printing Expenses .......................................................... -- 23 39 75 Custody Fees ............................................................... 42 122 233 856 Professional Fees .......................................................... -- 95 70 44 Trustee Fees ............................................................... -- 5 10 10 Registration Fees .......................................................... -- 19 42 43 Distribution Fees -- Trust Shares .......................................... -- 1,170 1,116 -- Less: Distribution Fees Waived -- Trust Shares ............................. -- (872) (1,029) -- Distribution Fees -- Investor Shares ....................................... -- 26 50 52 Less: Distribution Fees Waived -- Investor Shares .......................... -- (16) (50) (8) Distribution Fees -- Flex Shares ........................................... -- 136 203 194 Less: Distribution Fees Waived -- Flex Shares .............................. -- (21) (51) (51) Insurance and Other Fees ................................................... 11 35 30 29 Amortization of Deferred Organization Costs ................................ (8) -- -- 5 --------- --------- --------- --------- Total Expenses ............................................................. 427 3,942 6,684 9,248 --------- --------- --------- --------- Net Investment Income ...................................................... 487 1,547 3,859 3,923 --------- --------- --------- --------- Net Realized and Unrealized Gain (Loss) on Investments: Capital Gain Received from Investments ..................................... -- -- -- -- Net Realized Gain (Loss) on Securities Sold ................................ (6,188) 48,404 42,161 21,269 Net Realized Loss on Foreign Currency Transactions ......................... (45) -- -- (811) Net Change in Unrealized Appreciation (Depreciation) on Foreign Currency and Translation of Other Assets and Liabilities in Foreign Currency .......... (12) -- -- (10) Net Change in Unrealized Appreciation (Depreciation) on Investments ........ 3,231 39,898 33,416 (78,440) --------- --------- --------- --------- Total Net Realized and Unrealized Gain (Loss) on Investments ............... (3,014) 88,302 75,577 (57,992) --------- --------- --------- --------- Net Increase (Decrease) in Net Assets from Operations ...................... $ (2,527) $ 89,849 $ 79,436 $ (54,069) ========= ========= ========= ========= Amounts designated as "--" are either $0 or round to $0.
- --------------------------------------------------------------------------------
International Life Vision Equity Balanced Index Fund Portfolio ------------- ---------------------- 06/01/98- 12/01/98- 12/01/97- 05/31/99 05/31/99 11/30/98 ------------- ---------------------- Income: Interest Income ............................................................ $ 52 $ -- $ -- Dividend Income ............................................................ 1,132 991 2,295 Less: Foreign Taxes Withheld ............................................... (85) -- -- --------- --------- --------- Total Investment Income .................................................... 1,099 991 2,295 --------- --------- --------- Expenses: Investment Advisory Fees ................................................... 563 114 233 Less: Investment Advisory Fees Waived/Reimbursed ........................... (70) (54) (120) Administrator Fees ......................................................... 49 20 40 Administrator Fees Waived .................................................. -- (13) (40) Transfer Agent Fees -- Trust Shares ........................................ 16 22 47 Transfer Agent Fees -- Investor Shares ..................................... 10 -- -- Transfer Agent Fees -- Flex Shares ......................................... 10 -- -- Transfer Agent Out of Pocket Fees .......................................... 7 -- -- Printing Expenses .......................................................... 6 4 5 Custody Fees ............................................................... 66 13 28 Professional Fees .......................................................... 4 13 10 Trustee Fees ............................................................... -- 1 1 Registration Fees .......................................................... -- 1 19 Distribution Fees -- Trust Shares .......................................... -- -- -- Less: Distribution Fees Waived -- Trust Shares ............................. -- -- -- Distribution Fees -- Investor Shares ....................................... 22 -- -- Less: Distribution Fees Waived -- Investor Shares .......................... (5) -- -- Distribution Fees -- Flex Shares ........................................... 12 -- -- Less: Distribution Fees Waived -- Flex Shares .............................. (4) -- -- Insurance and Other Fees ................................................... 18 -- 10 Amortization of Deferred Organization Costs ................................ 3 3 -- --------- --------- --------- Total Expenses ............................................................. 707 124 233 --------- --------- --------- Net Investment Income ...................................................... 392 867 2,062 --------- --------- --------- Net Realized and Unrealized Gain (Loss) on Investments: Capital Gain Received from Investments ..................................... -- 2,204 6,921 Net Realized Gain (Loss) on Securities Sold ................................ 7,583 317 (1,004) Net Realized Loss on Foreign Currency Transactions ......................... (40) -- -- Net Change in Unrealized Appreciation (Depreciation) on Foreign Currency and Translation of Other Assets and Liabilities in Foreign Currency .......... (88) -- -- Net Change in Unrealized Appreciation (Depreciation) on Investments ........ (3,971) 2,338 (1,024) --------- --------- --------- Total Net Realized and Unrealized Gain (Loss) on Investments ............... 3,484 4,859 4,893 --------- --------- --------- Net Increase (Decrease) in Net Assets from Operations ...................... $ 3,876 $ 5,726 $ 6,955 ========= ========= ========= Amounts designated as "--" are either $0 or round to $0.
The accompanying notes are an integral part of the financial statements. 71 STATEMENT OF OPERATIONS (000) - -------------------------------------------------------------------------------- STI CLASSIC EQUITY FUNDS For The Periods Ended May 31, and November 30,
Life Vision Growth and Income Portfolio ------------------------ 12/01/98- 12/01/97- 05/31/99 11/30/98 ---------- ---------- Income: Interest Income ................................................... $ -- $ -- Dividend Income ................................................... 166 410 Less: Foreign Taxes Withheld ...................................... -- -- ------ ------ Total Investment Income ........................................... 166 410 ------ ------ Expenses: Investment Advisory Fees .......................................... 25 53 Less: Investment Advisory Fees Waived/Reimbursed .................. (15) (32) Administrator Fees ................................................ 20 40 Administrator Fees Waived ......................................... (18) (40) Transfer Agent Fees -- Trust Shares ............................... 5 11 Transfer Agent Fees -- Investor Shares ............................ -- -- Transfer Agent Fees -- Flex Shares ................................ -- -- Transfer Agent Out of Pocket Fees ................................. -- -- Printing Expenses ................................................. 1 1 Custody Fees ...................................................... 3 6 Professional Fees ................................................. 4 2 Trustee Fees ...................................................... -- -- Registration Fees ................................................. -- 5 Distribution Fees -- Investor Shares .............................. -- -- Less: Distribution Fees Waived -- Investor Shares ................. -- -- Distribution Fees -- Flex Shares .................................. -- -- Less: Distribution Fees Waived -- Flex Shares ..................... -- -- Insurance and Other Fees .......................................... -- 7 Amortization of Deferred Organization Costs ....................... 3 -- ------ ------ Total Expenses .................................................... 28 53 ------ ------ Net Investment Income (Loss) ...................................... 138 357 ------ ------ Net Realized and Unrealized Gain (Loss) on Investments: Capital Gain Received from Investments ............................ 490 2,121 Net Realized Gain (Loss) on Securities Sold ....................... (82) (45) Net Change in Unrealized Appreciation (Depreciation) on Investments 922 (580) ------ ------ Total Net Realized and Unrealized Gain (Loss) on Investments ...... 1,330 1,496 ------ ------ Net Increase (Decrease) in Net Assets from Operations ............. $1,468 $1,853 ====== ======
* Commenced operations 72 - --------------------------------------------------------------------------------
Life Vision Mid-Cap Small Cap Maximum Growth Equity Equity Portfolio Fund Fund ---------------------- --------- ---------- 12/01/98- 12/01/97- 06/01/98- 06/01/98- 05/31/99 11/30/98 05/31/99 05/31/99 --------- ---------- --------- ---------- Interest Income ................................................... $ -- $ -- $ 823 $ 380 Dividend Income ................................................... 49 76 1,454 7,631 Less: Foreign Taxes Withheld ...................................... -- -- -- -- --------- --------- --------- --------- Total Investment Income ........................................... 49 76 2,277 8,011 --------- --------- --------- --------- Expenses: Investment Advisory Fees .......................................... Less: Investment Advisory Fees Waived/Reimbursed .................. 22 40 3,717 3,701 Administrator Fees ................................................ (13) (26) (355) (161) Administrator Fees Waived ......................................... 20 40 253 251 Transfer Agent Fees -- Trust Shares ............................... (19) (40) -- -- Transfer Agent Fees -- Investor Shares ............................ 5 8 14 17 Transfer Agent Fees -- Flex Shares ................................ -- -- 12 -- Transfer Agent Out of Pocket Fees ................................. -- -- 35 79 Printing Expenses ................................................. -- -- 39 38 Custody Fees ...................................................... 1 1 39 13 Professional Fees ................................................. 2 5 21 17 Trustee Fees ...................................................... 3 -- 21 23 Registration Fees ................................................. -- 2 8 4 Distribution Fees -- Investor Shares .............................. -- -- 13 17 Less: Distribution Fees Waived -- Investor Shares ................. -- 4 90 -- Distribution Fees -- Flex Shares .................................. -- -- (7) -- Less: Distribution Fees Waived -- Flex Shares ..................... -- -- 172 275 Insurance and Other Fees .......................................... -- -- (25) (64) Amortization of Deferred Organization Costs ....................... -- 6 9 -- 3 -- -- 4 --------- --------- --------- --------- Total Expenses .................................................... 24 40 4,056 4,214 --------- --------- --------- --------- Net Investment Income (Loss) ...................................... 25 36 (1,779) 3,797 --------- --------- --------- --------- Net Realized and Unrealized Gain (Loss) on Investments: Capital Gain Received from Investments ............................ Net Realized Gain (Loss) on Securities Sold ....................... 499 1,739 -- -- Net Change in Unrealized Appreciation (Depreciation) on Investments (42) (463) 12,419 (48,614) 1,329 (226) (10,771) (39,458) Total Net Realized and Unrealized Gain (Loss) on Investments ...... --------- --------- --------- --------- 1,786 1,050 1,648 (88,072) Net Increase (Decrease) in Net Assets from Operations ............. --------- --------- --------- --------- $ 1,811 $ 1,086 $ (131) $ (84,275) ========= ========= ========= =========
Small Cap Sunbelt Tax Sensitive Value Growth Stock Equity Growth Stock Income Stock Fund Fund Fund Fund ------------ --------- ------------- ------------ 10/08/98*- 06/01/98- 12/11/98- 06/01/98- 05/31/99 05/31/99 05/31/99 05/31/99 ------------ --------- ------------- ------------ Income: Interest Income ................................................... $ 119 $ 187 $ 363 $ 5,715 Dividend Income ................................................... 77 1,415 877 48,342 Less: Foreign Taxes Withheld ...................................... -- -- -- -- --------- --------- --------- --------- Total Investment Income ........................................... 196 1,602 1,240 54,057 --------- --------- --------- --------- Expenses: Investment Advisory Fees .......................................... Less: Investment Advisory Fees Waived/Reimbursed .................. 314 3,788 1,008 15,302 Administrator Fees ................................................ (79) (417) (124) -- Administrator Fees Waived ......................................... 21 258 67 1,498 Transfer Agent Fees -- Trust Shares ............................... -- -- -- -- Transfer Agent Fees -- Investor Shares ............................ 11 12 8 18 Transfer Agent Fees -- Flex Shares ................................ -- 12 -- 56 Transfer Agent Out of Pocket Fees ................................. 9 23 14 179 Printing Expenses ................................................. 15 61 10 235 Custody Fees ...................................................... 10 61 7 131 Professional Fees ................................................. 7 19 3 67 Trustee Fees ...................................................... 8 37 8 143 Registration Fees ................................................. -- 12 1 42 Distribution Fees -- Investor Shares .............................. 16 14 62 50 Less: Distribution Fees Waived -- Investor Shares ................. -- 97 -- 638 Distribution Fees -- Flex Shares .................................. -- (7) -- -- Less: Distribution Fees Waived -- Flex Shares ..................... 12 63 144 1,671 Insurance and Other Fees .......................................... (8) (20) (9) (9) Amortization of Deferred Organization Costs ....................... 1 -- 3 94 -- 10 -- -- --------- --------- --------- --------- Total Expenses .................................................... 337 4,023 1,202 20,115 --------- --------- --------- --------- Net Investment Income (Loss) ...................................... (141) (2,421) 38 33,942 --------- --------- --------- --------- Net Realized and Unrealized Gain (Loss) on Investments: Capital Gain Received from Investments ............................ Net Realized Gain (Loss) on Securities Sold ....................... -- -- -- -- Net Change in Unrealized Appreciation (Depreciation) on Investments 2,335 (16,055) 4,943 219,408 4,550 (79,885) 14,808 (71,294) Total Net Realized and Unrealized Gain (Loss) on Investments ...... --------- --------- --------- --------- 6,885 (95,940) 19,751 148,114 Net Increase (Decrease) in Net Assets from Operations ............. --------- --------- --------- --------- $ 6,744 $ (98,361) $ 19,789 $ 182,056 ========= ========= ========= =========
The accompanying notes are an integral part of the financial statements. 73 STATEMENT OF CHANGES IN NET ASSETS (000) - -------------------------------------------------------------------------------- STI CLASSIC EQUITY FUNDS For The Periods Ended May 31, and November 30,
Emerging Balanced Fund Capital Appreciation Fund Markets Equity Fund -------------------- ------------------------- -------------------- 06/01/98- 06/01/97- 06/01/98- 06/01/97- 06/01/98- 06/01/97- 05/31/99 05/31/98 05/31/99 05/31/98 05/31/99 05/31/98 --------- --------- --------- --------- --------- --------- Operations: Net Investment Income (Loss) ............................. $ 5,369 $ 4,558 $ 3,087 $ 7,983 $ 487 $ 468 Capital Gain Received from Investments ................... -- -- -- -- -- -- Net Realized Gain (Loss) on Investments .................. 9,690 17,885 166,440 261,636 (6,188) (875) Net Realized Loss on Foreign Currency Transactions ....... -- -- -- -- (45) (61) Net Change in Unrealized Appreciation (Depreciation) on Foreign Currency and Translation of Other Assets and Liabilities in Foreign Currency ........................ -- -- -- -- (12) (1) Net Change in Unrealized Appreciation (Depreciation) on Investments ......................................... 11,063 14,594 151,103 157,396 3,231 (7,440) -------- -------- ---------- ---------- ------- ------- Increase (Decrease) in Net Assets from Operations ...... 26,122 37,037 320,630 427,015 (2,527) (7,909) -------- -------- ---------- ---------- ------- ------- Distributions to Shareholders: Net Investment Income: Trust Shares ........................................... (4,438) (4,197) (5,572) (7,798) (622) (314) Investor Shares ........................................ (200) (154) (36) (28) -- -- Flex Shares ............................................ (506) (204) -- -- -- -- Capital Gains: Trust Shares ........................................... (13,593) (12,908) (240,608) (200,074) -- (544) Investor Shares ........................................ (771) (536) (41,767) (36,216) -- -- Flex Shares ............................................ (2,745) (972) (19,498) (9,643) -- -- -------- -------- ---------- ---------- ------- ------- Total Distributions ...................................... (22,253) (18,971) (307,481) (253,759) (622) (858) -------- -------- ---------- ---------- ------- ------- Capital Transactions (1): Trust Shares: Proceeds from Shares Issued ............................ 146,574 53,532 673,116 466,511 14,574 23,819 Shares Issued in Connection with Crestar Merger ........ -- -- 139,648 -- -- -- Reinvestment of Cash Distributions ..................... 17,886 16,935 234,593 197,282 544 805 Cost of Shares Repurchased ............................. (104,280) (49,610) (623,912) (358,832) (19,772) (20,798) -------- -------- ---------- ---------- ------- ------- Increase (Decrease) in Net Assets From Trust Share Transactions ........................................... 60,180 20,857 423,445 304,961 (4,654) 3,826 -------- -------- ---------- ---------- ------- ------- Investor Shares: Proceeds from Shares Issued ............................ 7,551 2,150 32,561 29,116 -- -- Shares Issued in Connection with Crestar Merger ........ -- -- 12,499 -- -- Reinvestment of Cash Distributions ..................... 966 680 41,544 35,990 -- -- Cost of Shares Repurchased ............................. (2,023) (1,166) (49,083) (37,738) -- -- -------- -------- ---------- ---------- ------- ------- Increase (Decrease) in Net Assets From Investor Share Transactions ..................................... 6,494 1,664 37,521 27,368 -- -- -------- -------- ---------- ---------- ------- ------- Flex Shares: Proceeds from Shares Issued ............................ 54,572 21,409 68,098 67,377 -- -- Shares Issued in Connection with Crestar Merger ........ -- 7,867 -- -- -- Reinvestment of Cash Distributions ..................... 3,206 1,164 19,257 9,528 -- -- Cost of Shares Repurchased ............................. (12,484) (2,194) (39,576) (12,730) -- -- -------- -------- ---------- ---------- ------- ------- Increase (Decrease) in Net Assets From Flex Share Transactions ................................ 45,294 20,379 55,646 64,175 -- -- -------- -------- ---------- ---------- ------- ------- Increase (Decrease) in Net Assets From Share Transactions ......................................... 111,968 42,900 516,612 396,504 (4,654) 3,826 -------- -------- ---------- ---------- ------- ------- Total Increase (Decrease) in Net Assets .............. 115,837 60,966 529,761 569,760 (7,803) (4,941) -------- -------- ---------- ---------- ------- ------- Net Assets: Beginning of Period ...................................... 224,403 163,437 1,910,301 1,340,541 34,554 39,495 -------- -------- ---------- ---------- ------- ------- End of Period ............................................ $340,240 $224,403 $2,440,062 $1,910,301 $26,751 $34,554 ======== ======== ========== ========== ======= ======= (1)Shares Issued and Redeemed: Trust Shares: Shares Issued .......................................... 11,211 4,245 40,224 29,548 1,963 2,344 Shares Issued in Connection with Crestar Merger ........ -- 8,202 -- -- -- Shares Issued in Lieu of Cash Distributions ............ 1,393 1,402 14,645 13,725 78 92 Shares Redeemed ........................................ (8,020) (3,922) (37,763) (22,177) (2,644) (2,199) -------- -------- ---------- ---------- ------- ------- Net Trust Share Transactions ............................. 4,584 1,725 25,308 21,096 (603) 237 -------- -------- ---------- ---------- ------- ------- Investor Shares: Shares Issued .......................................... 570 167 1,967 1,812 -- -- Shares Issued in Connection with Crestar Merger ........ -- -- 738 -- -- Shares Issued in Lieu of Cash Distributions ............ 75 56 2,607 2,518 -- -- Shares Redeemed ........................................ (154) (92) (2,983) (2,349) -- -- -------- -------- ---------- ---------- ------- ------- Net Investor Share Transactions .......................... 491 131 2,329 1,981 -- -- -------- -------- ---------- ---------- ------- ------- Flex Shares: Shares Issued .......................................... 4,165 1,688 4,176 4,242 -- -- Shares Issued in Connection with Crestar Merger ........ -- -- 474 -- -- Shares Issued in Lieu of Cash Distributions ............ 252 97 1,228 674 -- -- Shares Redeemed ........................................ (956) (173) (2,440) (795) -- -- -------- -------- ---------- ---------- ------- ------- Net Flex Share Transactions .............................. 3,461 1,612 3,438 4,121 -- -- ======== ======== ========== ========== ======= ======= Net Change in Capital Shares ............................. 8,536 3,468 31,075 27,198 (603) 237 -------- -------- ---------- ---------- ------- -------
*Commenced operations. Amounts designated as "--" are either $0 or have been rounded to $0. 74 - --------------------------------------------------------------------------------
International Growth and Equity Income Fund Fund ---------------------------------- -------------------- 12/01/98- 12/01/97- 12/01/96- 06/01/98- 06/01/97- 05/31/99 11/30/98 11/30/97 05/31/99 05/31/98 -------- --------- --------- --------- --------- Operations: $ 1,547 $ 3,859 $ 5,276 $ 3,923 $ 3,320 Net Investment Income (Loss) ............................. -- -- -- -- -- Capital Gain Received from Investments ................... 48,404 42,161 118,138 21,269 61,173 Net Realized Gain (Loss) on Investments .................. -- -- -- (811) (1,410) Net Realized Loss on Foreign Currency Transactions ....... Net Change in Unrealized Appreciation (Depreciation) on Foreign Currency and Translation of Other Assets and -- -- -- (10) (93) Liabilities in Foreign Currency ........................ Net Change in Unrealized Appreciation (Depreciation) 39,898 33,416 7,024 (78,440) 50,891 on Investments ......................................... -------- -------- -------- -------- -------- 89,849 79,436 130,438 (54,069) 113,881 Increase (Decrease) in Net Assets from Operations ...... -------- -------- -------- -------- -------- Distributions to Shareholders: Net Investment Income: (935) (3,768) (5,360) (2,385) (1,649) Trust Shares ........................................... (66) (212) (214) (6) (5) Investor Shares ........................................ (7) -- (24) -- -- Flex Shares ............................................ Capital Gains: (38,443) (110,281) (2,857) (33,895) (49,334) Trust Shares ........................................... (2,259) (5,275) (96) (965) (1,347) Investor Shares ........................................ (1,704) (2,562) (27) (1,189) (1,526) Flex Shares ............................................ -------- -------- -------- -------- -------- (43,414) (122,098) (8,578) (38,440) (53,861) Total Distributions ...................................... -------- -------- -------- -------- -------- Capital Transactions (1): Trust Shares: 77,854 92,390 86,500 172,988 292,707 Proceeds from Shares Issued ............................ -- -- -- -- -- Shares Issued in Connection with Crestar Merger ........ 11,972 88,294 2,679 33,324 47,572 Reinvestment of Cash Distributions ..................... (74,302) (153,783) (167,444) (175,047) (258,050) Cost of Shares Repurchased ............................. -------- -------- -------- -------- -------- Increase (Decrease) in Net Assets From Trust Share 15,524 26,901 (78,265) 31,265 82,229 Transactions ........................................... -------- -------- -------- -------- -------- Investor Shares: 2,099 11,222 9,602 2,728 7,487 Proceeds from Shares Issued ............................ -- -- -- -- -- Shares Issued in Connection with Crestar Merger ........ 2,157 5,277 303 965 1,351 Reinvestment of Cash Distributions ..................... (4,209) (8,617) (4,558) (4,566) (3,549) Cost of Shares Repurchased ............................. -------- -------- -------- -------- -------- Increase (Decrease) in Net Assets From Investor 47 7,882 5,347 (873) 5,289 Share Transactions ..................................... -------- -------- -------- -------- -------- Flex Shares: 8,350 12,797 7,216 6,324 14,405 Proceeds from Shares Issued ............................ -- -- -- -- -- Shares Issued in Connection with Crestar Merger ........ 1,675 2,504 51 1,174 1,507 Reinvestment of Cash Distributions ..................... (2,763) (2,494) (782) (8,295) (4,407) Cost of Shares Repurchased ............................. -------- -------- -------- -------- -------- Increase (Decrease) in Net Assets From 7,262 12,807 6,485 (797) 11,505 Flex Share Transactions ................................ -------- -------- -------- -------- -------- Increase (Decrease) in Net Assets From Share 22,833 47,590 (66,433) 29,595 99,023 Transactions ......................................... -------- -------- -------- -------- -------- 69,268 4,928 55,427 (62,914) 159,043 Total Increase (Decrease) in Net Assets .............. -------- -------- -------- -------- -------- Net Assets: 637,132 632,204 576,777 667,417 508,374 Beginning of Period ...................................... -------- -------- -------- -------- -------- $706,400 $637,132 $632,204 $604,503 $667,417 End of Period ............................................ ======== ======== ======== ======== ======== (1)Shares Issued and Redeemed: Trust Shares: 5,206 10,513 6,467 12,883 20,687 Shares Issued .......................................... -- -- -- -- -- Shares Issued in Connection with Crestar Merger ........ 840 6,789 193 2,626 3,744 Shares Issued in Lieu of Cash Distributions ............ (4,849) (14,789) (12,286) (13,225) (18,402) Shares Redeemed ........................................ -------- -------- -------- -------- -------- 1,197 2,513 (5,626) 2,284 6,029 Net Trust Share Transactions ............................. -------- -------- -------- -------- -------- Investor Shares: 137 764 636 203 526 Shares Issued .......................................... -- -- -- -- -- Shares Issued in Connection with Crestar Merger ........ 150 402 21 77 107 Shares Issued in Lieu of Cash Distributions ............ (272) (591) (304) (350) (254) Shares Redeemed ........................................ -------- -------- -------- -------- -------- 15 575 353 (70) 379 Net Investor Share Transactions .......................... -------- -------- -------- -------- -------- Flex Shares: 550 874 467 468 1,021 Shares Issued .......................................... -- -- -- -- -- Shares Issued in Connection with Crestar Merger ........ 117 192 4 95 121 Shares Issued in Lieu of Cash Distributions ............ (178) (171) (53) (648) (322) Shares Redeemed ........................................ -------- -------- -------- -------- -------- 489 895 418 (85) 820 Net Flex Share Transactions .............................. ======== ======== ======== ======== ======== 1,701 3,983 (4,855) 2,129 7,228 Net Change in Capital Shares ............................. -------- -------- -------- -------- --------
- --------------------------------------------------------------------------------
International Life Vision Equity Balanced Index Fund Portfolio -------------------- ------------------------------- 06/01/98- 06/01/97- 12/01/98- 12/01/97- 06/30/97* 05/31/99 05/31/98 05/31/99 11/30/98 11/30/97 --------- --------- --------- --------- --------- Operations: $ 392 $ 498 $ 867 $ 2,062 $ 993 Net Investment Income (Loss) ............................. -- -- 2,204 6,921 -- Capital Gain Received from Investments ................... 7,583 3,349 317 (1,004) 235 Net Realized Gain (Loss) on Investments .................. (40) (46) -- -- -- Net Realized Loss on Foreign Currency Transactions ....... Net Change in Unrealized Appreciation (Depreciation) on Foreign Currency and Translation of Other Assets and (88) 19 -- -- -- Liabilities in Foreign Currency ........................ Net Change in Unrealized Appreciation (Depreciation) (3,971) 9,866 2,338 (1,024) 3,730 on Investments ......................................... ------- ------- ------- ------- ------- 3,876 13,686 5,726 6,955 4,958 Increase (Decrease) in Net Assets from Operations ...... ------- ------- ------- ------- ------- Distributions to Shareholders: Net Investment Income: (1,136) (489) (735) (2,072) (941) Trust Shares ........................................... (83) (34) -- -- -- Investor Shares ........................................ (4) -- -- -- -- Flex Shares ............................................ Capital Gains: (8,431) (2,914) (6,686) (238) -- Trust Shares ........................................... (877) (343) -- -- -- Investor Shares ........................................ (172) (54) -- -- -- Flex Shares ............................................ ------- ------- ------- ------- ------- (10,703) (3,834) (7,421) (2,310) (941) Total Distributions ...................................... ------- ------- ------- ------- ------- Capital Transactions (1): Trust Shares: 34,363 8,458 5,124 15,849 94,371 Proceeds from Shares Issued ............................ -- -- -- -- Shares Issued in Connection with Crestar Merger ........ 8,985 3,057 7,421 2,310 941 Reinvestment of Cash Distributions ..................... (18,882) (17,470) (15,873) (19,035) (9,887) Cost of Shares Repurchased ............................. ------- ------- ------- ------- ------- Increase (Decrease) in Net Assets From Trust Share 24,466 (5,955) (3,328) (876) 85,425 Transactions ........................................... ------- ------- ------- ------- ------- Investor Shares: 1,083 2,516 -- -- -- Proceeds from Shares Issued ............................ -- -- -- -- -- Shares Issued in Connection with Crestar Merger ........ 959 375 -- -- -- Reinvestment of Cash Distributions ..................... (3,668) (2,400) -- -- -- Cost of Shares Repurchased ............................. ------- ------- ------- ------- ------- Increase (Decrease) in Net Assets From Investor (1,626) 491 -- -- -- Share Transactions ..................................... ------- ------- ------- ------- ------- Flex Shares: 980 788 -- -- -- Proceeds from Shares Issued ............................ -- -- -- -- -- Shares Issued in Connection with Crestar Merger ........ 174 53 -- -- -- Reinvestment of Cash Distributions ..................... (987) (427) -- -- -- Cost of Shares Repurchased ............................. ------- ------- ------- ------- ------- Increase (Decrease) in Net Assets From 167 414 -- -- -- Flex Share Transactions ................................ ------- ------- ------- ------- ------- Increase (Decrease) in Net Assets From Share 23,007 (5,050) (3,328) (876) 85,425 Transactions ......................................... ------- ------- ------- ------- ------- 16,180 4,802 (5,023) 3,769 89,442 Total Increase (Decrease) in Net Assets .............. ------- ------- ------- ------- ------- Net Assets: 64,810 60,008 93,211 89,442 -- Beginning of Period ...................................... ------- ------- ------- ------- ------- $80,990 $64,810 $88,188 $93,211 $89,442 End of Period ............................................ ======= ======= ======= ======= ======= (1)Shares Issued and Redeemed: Trust Shares: 2,851 700 476 1,449 9,446 Shares Issued .......................................... -- -- -- -- -- Shares Issued in Connection with Crestar Merger ........ 779 277 712 214 90 Shares Issued in Lieu of Cash Distributions ............ (1,537) (1,473) (1,486) (1,743) (990) Shares Redeemed ........................................ ------- ------- ------- ------- ------- 2,093 (496) (298) (80) 8,546 Net Trust Share Transactions ............................. ------- ------- ------- ------- ------- Investor Shares: 88 210 -- -- -- Shares Issued .......................................... -- -- -- -- -- Shares Issued in Connection with Crestar Merger ........ 84 34 -- -- -- Shares Issued in Lieu of Cash Distributions ............ (294) (201) -- -- -- Shares Redeemed ........................................ ------- ------- ------- ------- ------- (122) 43 -- -- -- Net Investor Share Transactions .......................... ------- ------- ------- ------- ------- Flex Shares: 80 63 -- -- -- Shares Issued .......................................... -- -- -- -- -- Shares Issued in Connection with Crestar Merger ........ 15 5 -- -- -- Shares Issued in Lieu of Cash Distributions ............ (82) (36) -- -- -- Shares Redeemed ........................................ ------- ------- ------- ------- ------- 13 32 -- -- -- Net Flex Share Transactions .............................. ======= ======= ======= ======= ======= 1,984 (421) (298) (80) 8,546 Net Change in Capital Shares ............................. ------- ------- ------- ------- -------
The accompanying notes are an integral part of the financial statements 75 STATEMENT OF CHANGES IN NET ASSETS (000) - -------------------------------------------------------------------------------- STI CLASSIC EQUITY FUNDS For The Periods Ended May 31, and November 30,
Life Vision Growth and Income Portfolio ----------------------------------------- 12/01/98- 12/01/97- 06/30/97* 05/31/99 11/30/98 11/30/97 ------------ ---------- --------- Operations: Net Investment Income (Loss) ..................................... $ 138 $ 357 $ 190 Capital Gain Received from Investments ........................... 490 2,121 -- Net Realized Gain (Loss) on Investments .......................... (82) (45) 20 Net Change in Unrealized Appreciation (Depreciation) on Investments ................................................. 922 (580) 1,003 ----------- ----------- ----------- Increase (Decrease) in Net Assets from Operations ................ 1,468 1,853 1,213 ----------- ----------- ----------- Distributions to Shareholders: Net Investment Income: Trust Shares ................................................... (114) (360) (180) Investor Shares ................................................ -- -- -- Flex Shares .................................................... -- -- -- Capital Gains: Trust Shares ................................................... (2,475) (22) -- Investor Shares ................................................ -- -- -- Flex Shares .................................................... -- -- -- ----------- ----------- ----------- Total Distributions .............................................. (2,589) (382) (180) ----------- ----------- ----------- Capital Transactions (1): Trust Shares: Proceeds from Shares Issued .................................... 2,679 2,591 21,846 Shares Issued in Connection with Common Trust Fund Conversion ................................................... -- -- -- Shares Issued in Connection with Crestar Merger ................ -- -- -- Reinvestment of Cash Distributions ............................. 2,589 382 180 Cost of Shares Repurchased ..................................... (1,239) (7,923) (538) ----------- ----------- ----------- Increase (Decrease) in Net Assets From Trust Share Transactions ................................................... 4,029 (4,950) 21,488 ----------- ----------- ----------- 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 .................................... -- -- -- Shares Issued in Connection with Crestar Merger ................ -- -- -- Reinvestment of Cash Distributions ............................. -- -- -- Cost of Shares Repurchased ..................................... -- -- -- ----------- ----------- ----------- Increase (Decrease) in Net Assets From Flex Share Transactions ........................................ -- -- -- ----------- ----------- ----------- Increase (Decrease) in Net Assets From Share Transactions ................................................. 4,029 (4,950) 21,488 ----------- ----------- ----------- Total Increase (Decrease) in Net Assets ...................... 2,908 (3,479) 22,521 ----------- ----------- ----------- Net Assets: Beginning of Period .............................................. 19,042 22,521 -- ----------- ----------- ----------- End of Period .................................................... $ 21,950 $ 19,042 $ 22,521 =========== =========== =========== Trust Shares: Shares Issued .................................................. 259 239 2,177 Shares Issued in Connection with Common Trust Fund Conversion ................................................... -- -- -- Shares Issued in Connection with Crestar Merger ................ -- -- -- Shares Issued in Lieu of Cash Distributions .................... 264 35 17 Shares Redeemed ................................................ (120) (695) (52) ----------- ----------- ----------- Net Trust Share Transactions ..................................... 403 (421) 2,142 ----------- ----------- ----------- Investor Shares: Shares Issued .................................................. -- -- -- Shares Issued in Lieu of Cash Distributions .................... -- -- -- Shares Redeemed ................................................ -- -- -- ----------- ----------- ----------- Net Investor Share Transactions .................................. -- -- -- ----------- ----------- ----------- Flex Shares: Shares Issued .................................................. -- -- -- Shares Issued in Connection with Crestar Merger ................ -- -- -- Shares Issued in Lieu of Cash Distributions .................... -- -- -- Shares Redeemed ................................................ -- -- -- ----------- ----------- ----------- Net Flex Share Transactions ...................................... -- -- -- =========== =========== =========== Net Change in Capital Shares ..................................... 403 (421) 2,142 ----------- ----------- -----------
*Commenced Operations Amounts designated as "--" are either $0 or have been rounded to $0.
Life Vision Maximum Growth Portfolio --------------------------------------- 12/01/98- 12/01/97- 06/30/97* 05/31/99 11/30/98 11/30/97 --------- --------- --------- Operations: Net Investment Income (Loss) ..................................... $ 25 $ 36 $ 39 Capital Gain Received from Investments ........................... 499 1,739 -- Net Realized Gain (Loss) on Investments .......................... (42) (463) (1) Net Change in Unrealized Appreciation (Depreciation) on Investments ................................................. 1,329 (226) 740 ----------- ----------- ----------- Increase (Decrease) in Net Assets from Operations ................ 1,811 1,086 778 ----------- ----------- ----------- Distributions to Shareholders: Net Investment Income: Trust Shares ................................................... (24) (35) (38) Investor Shares ................................................ -- -- -- Flex Shares .................................................... -- -- -- Capital Gains: Trust Shares ................................................... (1,670) -- -- Investor Shares ................................................ -- -- -- Flex Shares .................................................... -- -- -- ----------- ----------- ----------- Total Distributions .............................................. (1,694) (35) (38) ----------- ----------- ----------- Capital Transactions (1): Trust Shares: Proceeds from Shares Issued .................................... 2,114 5,852 13,614 Shares Issued in Connection with Common Trust Fund Conversion ................................................... -- -- -- Shares Issued in Connection with Crestar Merger ................ -- -- -- Reinvestment of Cash Distributions ............................. 1,694 36 38 Cost of Shares Repurchased ..................................... (1,456) (4,421) (680) ----------- ----------- ----------- Increase (Decrease) in Net Assets From Trust Share Transactions ................................................... 2,352 1,467 12,972 ----------- ----------- ----------- 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 .................................... -- -- -- Shares Issued in Connection with Crestar Merger ................ -- -- -- Reinvestment of Cash Distributions ............................. -- -- -- Cost of Shares Repurchased ..................................... -- -- -- ----------- ----------- ----------- Increase (Decrease) in Net Assets From Flex Share Transactions ........................................ -- -- -- ----------- ----------- ----------- Increase (Decrease) in Net Assets From Share Transactions ................................................. 2,352 1,467 12,972 ----------- ----------- ----------- Total Increase (Decrease) in Net Assets ...................... 2,469 2,518 13,712 ----------- ----------- ----------- Net Assets: Beginning of Period .............................................. 16,230 13,712 -- ----------- ----------- ----------- End of Period .................................................... $ 18,699 $ 16,230 $ 13,712 =========== =========== =========== Trust Shares: Shares Issued .................................................. 192 599 1,350 Shares Issued in Connection with Common Trust Fund Conversion ................................................... -- -- -- Shares Issued in Connection with Crestar Merger ................ -- -- -- Shares Issued in Lieu of Cash Distributions .................... 161 3 4 Shares Redeemed ................................................ (133) (456) (66) ----------- ----------- ----------- Net Trust Share Transactions ..................................... 220 146 1,288 ----------- ----------- ----------- Investor Shares: Shares Issued .................................................. -- -- -- Shares Issued in Lieu of Cash Distributions .................... -- -- -- Shares Redeemed ................................................ -- -- -- ----------- ----------- ----------- Net Investor Share Transactions .................................. -- -- -- ----------- ----------- ----------- Flex Shares: Shares Issued .................................................. -- -- -- Shares Issued in Connection with Crestar Merger ................ -- -- -- Shares Issued in Lieu of Cash Distributions .................... -- -- -- Shares Redeemed ................................................ -- -- -- ----------- ----------- ----------- Net Flex Share Transactions ...................................... -- -- -- =========== =========== =========== Net Change in Capital Shares ..................................... 220 146 1,288 ----------- ----------- -----------
76 - -----------------------------------------------------------------------
Mid-Cap Equity Small Cap Fund Equity Fund -------------------------- ------------------------ 06/01/98- 06/01/97- 06/01/98- 06/01/97- 05/31/99 05/31/98 05/31/99 05/31/98 ---------- --------- --------- --------- Operations: Net Investment Income (Loss) ..................................... $ (1,779) $ (1,352) $ 3,797 $ 3,127 Capital Gain Received from Investments ........................... -- -- -- -- Net Realized Gain (Loss) on Investments .......................... 12,419 54,941 (48,614) 32,653 Net Change in Unrealized Appreciation (Depreciation) on Investments ................................................. (10,771) 14,034 (39,458) 16,045 ----------- ----------- ----------- ----------- Increase (Decrease) in Net Assets from Operations ................ (131) 67,623 (84,275) 51,825 ----------- ----------- ----------- ----------- Distributions to Shareholders: Net Investment Income: Trust Shares ................................................... -- -- (3,830) (2,704) Investor Shares ................................................ (3) -- -- -- Flex Shares .................................................... -- -- (46) (70) Capital Gains: Trust Shares ................................................... (26,541) (44,446) (17,401) (14,480) Investor Shares ................................................ (1,970) (3,025) -- -- Flex Shares .................................................... (1,677) (1,899) (1,638) (897) ----------- ----------- ----------- ----------- Total Distributions .............................................. (30,191) (49,370) (22,915) (18,151) ----------- ----------- ----------- ----------- Capital Transactions (1): Trust Shares: Proceeds from Shares Issued .................................... 197,227 146,386 159,166 272,776 Shares Issued in Connection with Common Trust Fund Conversion ................................................... -- -- -- -- Shares Issued in Connection with Crestar Merger ................ -- -- -- -- Reinvestment of Cash Distributions ............................. 25,335 41,347 19,237 15,603 Cost of Shares Repurchased ..................................... (280,036) (153,972) (170,356) (61,475) ----------- ----------- ----------- ----------- Increase (Decrease) in Net Assets From Trust Share Transactions ................................................... (57,474) 33,761 8,047 226,904 ----------- ----------- ----------- ----------- Investor Shares: Proceeds from Shares Issued .................................... 3,015 6,110 -- -- Reinvestment of Cash Distributions ............................. 1,967 3,019 -- -- Cost of Shares Repurchased ..................................... (8,523) (5,606) -- -- ----------- ----------- ----------- ----------- Increase (Decrease) in Net Assets From Investor Share Transactions ............................................. (3,541) 3,523 -- -- ----------- ----------- ----------- ----------- Flex Shares: Proceeds from Shares Issued .................................... 4,866 10,574 2,579 42,359 Shares Issued in Connection with Crestar Merger ................ -- -- -- -- Reinvestment of Cash Distributions ............................. 1,671 1,885 1,669 958 Cost of Shares Repurchased ..................................... (7,908) (3,934) (15,110) (3,490) ----------- ----------- ----------- ----------- Increase (Decrease) in Net Assets From Flex Share Transactions ........................................ (1,371) 8,525 (10,862) 39,827 ----------- ----------- ----------- ----------- Increase (Decrease) in Net Assets From Share Transactions ................................................. (62,386) 45,809 (2,815) 266,731 ----------- ----------- ----------- ----------- Total Increase (Decrease) in Net Assets ...................... (92,708) 64,062 (110,005) 300,405 ----------- ----------- ----------- ----------- Net Assets: Beginning of Period .............................................. 381,797 317,735 431,454 131,049 ----------- ----------- ----------- ----------- End of Period .................................................... $ 289,089 $ 381,797 $ 321,449 $ 431,454 =========== =========== =========== =========== Trust Shares: Shares Issued .................................................. 16,168 10,517 16,078 22,065 Shares Issued in Connection with Common Trust Fund Conversion ................................................... -- -- -- -- Shares Issued in Connection with Crestar Merger ................ -- -- -- -- Shares Issued in Lieu of Cash Distributions .................... 2,230 3,378 2,040 1,294 Shares Redeemed ................................................ (22,862) (11,149) (17,349) (4,840) ----------- ----------- ----------- ----------- Net Trust Share Transactions ..................................... (4,464) 2,746 769 18,519 ----------- ----------- ----------- ----------- Investor Shares: Shares Issued .................................................. 247 445 -- -- Shares Issued in Lieu of Cash Distributions .................... 175 248 -- -- Shares Redeemed ................................................ (707) (407) -- -- ----------- ----------- ----------- ----------- Net Investor Share Transactions .................................. (285) 286 -- -- ----------- ----------- ----------- ----------- Flex Shares: Shares Issued .................................................. 403 777 245 3,366 Shares Issued in Connection with Crestar Merger ................ -- -- -- -- Shares Issued in Lieu of Cash Distributions .................... 152 158 179 80 Shares Redeemed ................................................ (676) (292) (1,580) (273) ----------- ----------- ----------- ----------- Net Flex Share Transactions ...................................... (121) 643 (1,156) 3,173 =========== =========== =========== =========== Net Change in Capital Shares ..................................... (4,870) 3,675 (387) 21,692 ----------- ----------- ----------- -----------
- -----------------------------------------------------------------------
Small Cap Tax Sensitive Growth Sunbelt Growth Stock Fund Equity Fund Stock Fund ---------- ------------------------ ------------- 10/08/98*- 06/01/98- 06/01/97- 12/11/98*- 05/31/99 05/31/99 05/31/98 05/31/99 ---------- --------- --------- ---------- Operations: Net Investment Income (Loss) ..................................... $ (141) $ (2,421) $ (4,364) $ 38 Capital Gain Received from Investments ........................... -- -- -- -- Net Realized Gain (Loss) on Investments .......................... 2,335 (16,055) 49,778 4,943 Net Change in Unrealized Appreciation (Depreciation) on Investments ................................................. 4,550 (79,885) 46,313 14,808 ----------- ----------- ----------- ----------- Increase (Decrease) in Net Assets from Operations ................ 6,744 (98,361) 91,727 19,789 ----------- ----------- ----------- ----------- Distributions to Shareholders: Net Investment Income: Trust Shares ................................................... (4) -- -- (87) Investor Shares ................................................ -- -- -- -- Flex Shares .................................................... -- -- -- -- Capital Gains: Trust Shares ................................................... (24) (22,775) (32,274) -- Investor Shares ................................................ -- (1,729) (2,333) -- Flex Shares .................................................... (1) (508) (516) -- ----------- ----------- ----------- ----------- Total Distributions .............................................. (29) (25,012) (35,123) (87) ----------- ----------- ----------- ----------- Capital Transactions (1): Trust Shares: Proceeds from Shares Issued .................................... 69,418 228,638 207,154 121,119 Shares Issued in Connection with Common Trust Fund Conversion ................................................... -- -- -- 99,222 Shares Issued in Connection with Crestar Merger ................ 88,940 -- -- -- Reinvestment of Cash Distributions ............................. 28 21,508 30,202 87 Cost of Shares Repurchased ..................................... (12,528) (372,294) (238,878) (15,922) ----------- ----------- ----------- ----------- Increase (Decrease) in Net Assets From Trust Share Transactions ................................................... 145,858 (122,148) (1,522) 204,506 ----------- ----------- ----------- ----------- Investor Shares: Proceeds from Shares Issued .................................... -- 2,830 5,150 -- Reinvestment of Cash Distributions ............................. -- 1,727 2,323 -- Cost of Shares Repurchased ..................................... -- (10,109) (8,619) -- ----------- ----------- ----------- ----------- Increase (Decrease) in Net Assets From Investor Share Transactions ............................................. -- (5,552) (1,146) -- ----------- ----------- ----------- ----------- Flex Shares: Proceeds from Shares Issued .................................... 3,553 1,881 3,848 77,327 Shares Issued in Connection with Crestar Merger ................ 2,699 -- -- -- Reinvestment of Cash Distributions ............................. 1 504 515 -- Cost of Shares Repurchased ..................................... (378) (3,604) (2,603) (2,117) ----------- ----------- ----------- ----------- Increase (Decrease) in Net Assets From Flex Share Transactions ........................................ 5,875 (1,219) 1,760 75,210 ----------- ----------- ----------- ----------- Increase (Decrease) in Net Assets From Share Transactions ................................................. 151,733 (128,919) (908) 279,716 ----------- ----------- ----------- ----------- Total Increase (Decrease) in Net Assets ...................... 158,448 (252,292) 55,696 299,418 ----------- ----------- ----------- ----------- Net Assets: Beginning of Period .............................................. -- 470,851 415,155 -- ----------- ----------- ----------- ----------- End of Period .................................................... $ 158,448 $ 218,559 $ 470,851 $ 299,418 =========== =========== =========== =========== Trust Shares: Shares Issued .................................................. 5,174 19,064 13,707 4,133 Shares Issued in Connection with Common Trust Fund Conversion ................................................... -- -- -- 3,875 Shares Issued in Connection with Crestar Merger ................ 6,174 -- -- -- Shares Issued in Lieu of Cash Distributions .................... 2 1,997 2,213 3 Shares Redeemed ................................................ (886) (31,845) (16,065) (549) ----------- ----------- ----------- ----------- Net Trust Share Transactions ..................................... 10,464 (10,784) (145) 7,462 ----------- ----------- ----------- ----------- Investor Shares: Shares Issued .................................................. -- 229 353 -- Shares Issued in Lieu of Cash Distributions .................... -- 165 174 -- Shares Redeemed ................................................ -- (909) (590) -- ----------- ----------- ----------- ----------- Net Investor Share Transactions .................................. -- (515) (63) -- ----------- ----------- ----------- ----------- Flex Shares: Shares Issued .................................................. 266 148 260 2,612 Shares Issued in Connection with Crestar Merger ................ 188 -- -- -- Shares Issued in Lieu of Cash Distributions .................... -- 49 39 -- Shares Redeemed ................................................ (28) (333) (184) (70) ----------- ----------- ----------- ----------- Net Flex Share Transactions ...................................... 426 (136) 115 2,542 =========== =========== =========== =========== Net Change in Capital Shares ..................................... 10,890 (11,435) (93) 10,004 ----------- ----------- ----------- -----------
Value Income Stock Fund ------------------------- 06/01/98- 06/01/97- 05/31/99 05/31/98 --------- --------- Operations: Net Investment Income (Loss) ..................................... $ 33,942 $ 34,555 Capital Gain Received from Investments ........................... -- -- Net Realized Gain (Loss) on Investments .......................... 219,408 319,982 Net Change in Unrealized Appreciation (Depreciation) on Investments ................................................. (71,294) 44,518 ----------- ----------- Increase (Decrease) in Net Assets from Operations ................ 182,056 399,055 ----------- ----------- Distributions to Shareholders: Net Investment Income: Trust Shares ................................................... (30,625) (30,991) Investor Shares ................................................ (3,178) (2,838) Flex Shares .................................................... (1,535) (1,104) Capital Gains: Trust Shares ................................................... (229,623) (262,191) Investor Shares ................................................ (29,331) (29,671) Flex Shares .................................................... (25,364) (19,217) ----------- ----------- Total Distributions .............................................. (319,656) (346,012) ----------- ----------- Capital Transactions (1): Trust Shares: Proceeds from Shares Issued .................................... 354,278 381,039 Shares Issued in Connection with Common Trust Fund Conversion ................................................... -- -- Shares Issued in Connection with Crestar Merger ................ -- -- Reinvestment of Cash Distributions ............................. 241,723 269,446 Cost of Shares Repurchased ..................................... (621,009) (459,701) ----------- ----------- Increase (Decrease) in Net Assets From Trust Share Transactions ................................................... (25,008) 190,784 ----------- ----------- Investor Shares: Proceeds from Shares Issued .................................... 17,566 35,483 Reinvestment of Cash Distributions ............................. 32,240 32,233 Cost of Shares Repurchased ..................................... (51,945) (28,503) ----------- ----------- Increase (Decrease) in Net Assets From Investor Share Transactions ............................................. (2,139) 39,213 ----------- ----------- Flex Shares: Proceeds from Shares Issued .................................... 38,150 106,762 Shares Issued in Connection with Crestar Merger ................ -- -- Reinvestment of Cash Distributions ............................. 26,492 20,054 Cost of Shares Repurchased ..................................... (65,171) (20,844) ----------- ----------- Increase (Decrease) in Net Assets From Flex Share Transactions ........................................ (529) 105,972 ----------- ----------- Increase (Decrease) in Net Assets From Share Transactions ................................................. (27,676) 335,969 ----------- ----------- Total Increase (Decrease) in Net Assets ...................... (165,276) 389,012 ----------- ----------- Net Assets: Beginning of Period .............................................. 2,116,539 1,727,527 ----------- ----------- End of Period .................................................... $1,951,263 $2,116,539 =========== =========== Trust Shares: Shares Issued .................................................. 28,099 26,871 Shares Issued in Connection with Common Trust Fund Conversion ................................................... -- -- Shares Issued in Connection with Crestar Merger ................ -- -- Shares Issued in Lieu of Cash Distributions .................... 20,747 21,156 Shares Redeemed ................................................ (49,236) (32,467) ----------- ----------- Net Trust Share Transactions ..................................... (390) 15,560 ----------- ----------- Investor Shares: Shares Issued .................................................. 1,391 2,518 Shares Issued in Lieu of Cash Distributions .................... 2,775 2,538 Shares Redeemed ................................................ (4,182) (2,003) ----------- ----------- Net Investor Share Transactions .................................. (16) 3,053 ----------- ----------- Flex Shares: Shares Issued .................................................. 3,029 7,617 Shares Issued in Connection with Crestar Merger ................ -- -- Shares Issued in Lieu of Cash Distributions .................... 2,310 1,597 Shares Redeemed ................................................ (5,298) (1,488) ----------- ----------- Net Flex Share Transactions ...................................... 41 7,726 =========== =========== Net Change in Capital Shares ..................................... (365) 26,339 ----------- -----------
The accompanying notes are an integral part of the financial statements 77 FINANCIAL HIGHLIGHTS - -------------------------------------------------------------------------------- STI CLASSIC EQUITY FUNDS For the Periods Ended May 31, (unless otherwise indicated) For a Share Outstanding Throughout the Periods
Net Asset Net Realized and Distributions Value Net Unrealized Gains from Net Distributions Net Asset Beginning Investment (Losses) Investment from Realized Value End of Period Income (Loss) on Investments Income Capital Gains of Period ---------- ------------- ----------------- -------------- -------------- --------- Balanced Fund Trust Shares 1999 $13.09 $ 0.28 $ 1.09 $(0.28) $ (0.92) $13.26 1998 11.94 0.31 2.19 (0.32) (1.03) 13.09 1997 11.55 0.33 1.47 (0.32) (1.09) 11.94 1996 10.26 0.33 1.41 (0.34) (0.11) 11.55 1995 9.76 0.33 0.49 (0.32) -- 10.26 Investor Shares 1999 $13.14 $ 0.24 $ 1.10 $(0.24) $ (0.92) $13.32 1998 11.99 0.28 2.19 (0.29) (1.03) 13.14 1997 11.60 0.29 1.48 (0.29) (1.09) 11.99 1996 10.30 0.30 1.41 (0.30) (0.11) 11.60 1995 9.79 0.28 0.51 (0.28) -- 10.30 Flex Shares 1999 $13.02 $ 0.16 $ 1.07 $(0.16) $ (0.92) $13.17 1998 11.90 0.20 2.16 (0.21) (1.03) 13.02 1997 11.53 0.22 1.45 (0.21) (1.09) 11.90 1996(1) 10.36 0.24 1.29 (0.25) (0.11) 11.53 Capital Appreciation Fund Trust Shares 1999 $16.48 $ 0.05 $ 2.70 $(0.06) $ (2.55) $16.62 1998 15.09 0.09 3.96 (0.09) (2.57) 16.48 1997 14.90 0.12 3.13 (0.12) (2.94) 15.09 1996 12.18 0.12 3.32 (0.13) (0.59) 14.90 1995 11.99 0.16 0.57 (0.14) (0.40) 12.18 Investor Shares 1999 $16.43 $(0.05) $ 2.70 $ -- $ (2.55) $16.53 1998 15.06 (0.01) 3.95 -- (2.57) 16.43 1997 14.89 0.03 3.10 (0.02) (2.94) 15.06 1996 12.17 0.03 3.32 (0.04) (0.59) 14.89 1995 11.98 0.09 0.57 (0.07) (0.40) 12.17 Flex Shares 1999 $16.22 $(0.09) $ 2.60 $ -- $ (2.55) $16.18 1998 14.96 (0.04) 3.87 -- (2.57) 16.22 1997 14.84 (0.01) 3.07 -- (2.94) 14.96 1996(2) 12.20 0.02 3.26 (0.05) (0.59) 14.84 Emerging Markets Equity Fund Trust Shares 1999 $ 8.87 $ 0.14 $(0.72) $(0.17) $ -- $ 8.12 1998 10.79 0.16 (1.86) (0.08) (0.14) 8.87 1997(3) 10.00 0.04 0.75 -- -- 10.79 Growth and Income Fund (A) Trust Shares 1999(4) $15.10 $ 0.04 $ 1.97 $(0.02) $ (1.00) $16.09 For the years ended November 30: 1998 16.55 0.09 1.64 (0.09) (3.09) 15.10 1997 13.39 0.14 3.24 (0.15) (0.07) 16.55 1996 11.60 0.17 2.38 (0.17) (0.59) 13.39 1995 10.73 0.24 2.62 (0.26) (1.73) 11.60 1994 11.38 0.20 (0.24) (0.19) (0.42) 10.73 Investor Shares 1999(4) $15.21 $ 0.04 $ 1.99 $(0.03) $ (1.00) $16.21 For the years ended November 30: 1998 16.64 0.10 1.66 (0.10) (3.09) 15.21 1997 13.47 0.13 3.25 (0.14) (0.07) 16.64 1996 11.66 0.17 2.39 (0.16) (0.59) 13.47 1995 10.78 0.25 2.62 (0.26) (1.73) 11.66 1994 11.42 0.18 (0.22) (0.18) (0.42) 10.78 Flex Shares 1999(4) $15.14 $(0.01) $ 1.97 $ -- $ (1.00) $16.10 For the years ended November 30: 1998 16.59 (0.01) 1.64 -- (3.08) 15.14 1997 13.44 0.04 3.23 (0.05) (0.07) 16.59 1996 11.64 0.09 2.38 (0.08) (0.59) 13.44 1995(5) 11.11 0.12 1.62 (0.14) (1.07) 11.64
+ Returns are for the period indicated and have not been annualized. Total return figures do not include applicable sales loads. (1) Commenced operations on June 14, 1995. All ratios for the period have been annualized. (2) Commenced operations on June 1, 1995. All ratios for the period have been annualized. (3) Commenced operations on January 31, 1997. All ratios for the period have been annualized (4) For the six month period ended May 31, 1999. All ratios for the period have been annualized. (5) Commenced operations on April 19, 1995. All ratios for the period ended November 30, 1995 have been annualized. (A) On May 24, 1999, the Crestar Value Fund exchanged all of its assets and certain liabilities for shares of the Growth and Income Fund. The Crestar Value Fund is the accounting survivor in this transaction, and as a result, its basis of accounting for assets and liabilities and its operating results for the periods prior to May 24, 1999 have been carried forward in these financial highlights. 78 - --------------------------------------------------------------------------------
Ratio of Ratio of Expenses to Net Assets Ratio of Net Investment Average Net Assets Total End of Expenses to Income (Loss) to (Excluding Waivers Return+ Period (000) Average Net Assets Average Net Assets and Reimbursements) ---------- ------------ ------------------ ------------------ ------------------- Balanced Fund Trust Shares 1999 10.98% $ 251,752 0.97% 2.19% 1.06% 1998 22.15 188,465 0.96 2.51 1.08 1997 16.66 151,358 0.95 2.89 1.08 1996 17.26 111,638 0.95 3.00 1.09 1995 8.72 89,051 0.95 3.44 1.11 Investor Shares 1999 10.70% $ 14,962 1.27% 1.89% 1.43% 1998 21.72 8,313 1.26 2.21 1.59 1997 16.27 6,012 1.25 2.58 1.64 1996 16.88 4,896 1.25 2.70 1.89 1995 8.29 3,765 1.25 3.17 1.80 Flex Shares 1999 9.84% $ 73,526 2.03% 1.13% 2.15% 1998 20.85 27,625 2.02 1.41 2.23 1997 15.40 6,067 2.01 1.84 2.45 1996(1) 15.58 3,131 2.00 1.85 2.97 Capital Appreciation Fund Trust Shares 1999 17.83% $1,966,842 1.17% 0.29% 1.26% 1998 29.51 1,532,587 1.16 0.61 1.27 1997 24.66 1,085,128 1.15 0.83 1.25 1996 28.97 981,498 1.15 0.90 1.27 1995 6.63 984,205 1.15 1.38 1.28 Investor Shares 1999 17.20% $ 311,120 1.82% (0.30%) 1.96% 1998 28.71 271,044 1.81 (0.03) 2.01 1997 23.74 218,660 1.80 0.19 2.02 1996 28.18 191,078 1.80 0.24 2.08 1995 5.93 160,875 1.80 0.73 2.10 Flex Shares 1999 16.50% $ 162,100 2.29% (0.86%) 2.38% 1998 28.12 106,670 2.26 (0.46) 2.37 1997 23.24 36,753 2.27 (0.29) 2.43 1996(2) 27.48 10,969 2.27 (0.29) 2.68 Emerging Markets Equity Fund Trust Shares 1999 (6.22%) $ 26,751 1.57% 1.79% 1.61% 1998 (15.74) 34,554 1.56 1.14 1.78 1997(3) 7.90 39,495 1.55 1.37 2.04 Growth and Income Fund (A) Trust Shares 1999(4) 14.24% $ 634,279 1.14% 0.49% 1.43% For the years ended November 30: 1998 13.64% 577,042 1.03% 0.63% 1.21 1997 25.41 590,824 1.02 0.92 1.17 1996 22.68 553,648 1.02 1.38 1.17 1995 28.76 220,386 1.02 2.16 1.17 1994 (0.49) 166,713 1.01 1.82 1.01 Investor Shares 1999(4) 14.31% $ 36,958 1.08% 0.54% 1.17% For the years ended November 30: 1998 13.69% 34,434 1.03% 0.63% 1.18 1997 25.42 28,112 1.03 0.89 1.18 1996 22.63 17,997 1.03 1.35 1.18 1995 28.71 12,633 1.03 2.14 1.18 1994 (0.45) 8,115 1.02 1.81 1.04 Flex Shares 1999(4) 13.85% $ 35,163 1.83% (0.21%) 1.97% For the years ended November 30: 1998 12.78% 25,656 1.78 (0.13%) 2.03 1997 24.63 13,269 1.73 0.15 2.09 1996 21.81 5,131 1.68 0.71 2.03 1995(5) 15.78 2,086 1.68 1.13 2.03
- --------------------------------------------------------------------------------
Ratio of Net Investment Income (Loss) to Average Net Assets Portfolio (Excluding Waivers Turnover and Reimbursements) Rate ------------------- --------- Balanced Fund Trust Shares 1999 2.10% 179% 1998 2.39 154 1997 2.76 197 1996 2.86 155 1995 3.28 157 Investor Shares 1999 1.73% 179% 1998 1.88 154 1997 2.19 197 1996 2.06 155 1995 2.62 157 Flex Shares 1999 1.01% 179% 1998 1.20 154 1997 1.40 197 1996(1) 0.88 155 Capital Appreciation Fund Trust Shares 1999 0.20% 147% 1998 0.50 194 1997 0.73 141 1996 0.78 156 1995 1.25 128 Investor Shares 1999 (0.44%) 147% 1998 (0.23) 194 1997 (0.03) 141 1996 (0.04) 156 1995 0.43 128 Flex Shares 1999 (0.95%) 147% 1998 (0.57) 194 1997 (0.45) 141 1996(2) (0.70) 156 Emerging Markets Equity Fund Trust Shares 1999 1.75% 67% 1998 0.92 74 1997(3) 0.88 24 Growth and Income Fund (A) Trust Shares 1999(4) 0.20% 31% For the years ended November 30: 1998 0.45% 71% 1997 0.77 100 1996 1.23 82 1995 2.01 175 1994 1.82 116 Investor Shares 1999(4) 0.45% 31% For the years ended November 30: 1998 0.48 71% 1997 0.74 100 1996 1.20 82 1995 1.99 175 1994 1.79 116 Flex Shares 1999(4) (0.35%) 31% For the years ended November 30: 1998 (0.38%) 71 1997 (0.20) 100 1996 0.36 82 1995(5) 0.78 175
The accompanying notes are an integral part of the financial statements 79 FINANCIAL HIGHLIGHTS - -------------------------------------------------------------------------------- STI CLASSIC EQUITY FUNDS For the Periods Ended May 31, (unless otherwise indicated) For a Share Outstanding Throughout the Periods
Net Asset Net Realized and Distributions Value Net Unrealized Gains from Net Distributions Net Asset Beginning Investment (Losses) Investment from Realized Value End of Period Income (Loss) on Investments Income Capital Gains of Period ---------- ------------- ---------------- ------------- ------------- --------- International Equity Fund Trust Shares 1999 $15.00 $ -- $(1.14) $(0.05) $(0.84) $12.97 1998 13.63 0.04 2.69 (0.04) (1.32) 15.00 1997 11.40 0.03 2.57 (0.02) (0.35) 13.63 1996(1) 10.00 0.05 1.35 -- -- 11.40 Investor Shares 1999 $14.92 $(0.09) $(1.10) $ -- $(0.84) $12.89 1998 13.58 0.02 2.64 -- (1.32) 14.92 1997 11.38 (0.01) 2.56 -- (0.35) 13.58 1996(2) 10.44 0.04 0.90 -- -- 11.38 Flex Shares 1999 $14.68 $(0.29) $(0.97) $ -- $(0.84) $12.58 1998 13.47 0.07 2.46 -- (1.32) 14.68 1997 11.37 (0.04) 2.49 -- (0.35) 13.47 1996(2) 10.44 0.02 0.91 -- -- 11.37 International Equity Index Fund Trust Shares 1999 $13.31 $ 0.09 $ 0.85 $(0.24) $(2.19) $11.82 1998 11.34 0.11 2.65 (0.11) (0.68) 13.31 1997 10.96 0.10 0.69 (0.11) (0.30) 11.34 1996 10.24 0.10 0.84 (0.13) (0.09) 10.96 1995(3) 10.00 0.08 0.19 (0.02) (0.01) 10.24 Investor Shares 1999 $13.20 $(0.11) $ 0.98 $(0.18) $(2.19) $11.70 1998 11.26 0.16 2.53 (0.07) (0.68) 13.20 1997 10.88 0.03 0.72 (0.07) (0.30) 11.26 1996 10.20 0.05 0.85 (0.13) (0.09) 10.88 1995(3) 10.00 0.05 0.17 (0.01) (0.01) 10.20 Flex Shares 1999 $13.17 $(0.15) $ 0.94 $(0.04) $(2.19) $11.73 1998 11.24 0.17 2.44 -- (0.68) 13.17 1997 10.87 (0.05) 0.72 -- (0.30) 11.24 1996(4) 10.24 -- 0.82 (0.10) (0.09) 10.87 Life Vision Balanced Portfolio (A) Trust Shares 1999(5) $11.01 $ 0.11 $ 0.56 $(0.09) $(0.79) $10.80 For the years ended November 30: 1998 10.46 0.24 0.58 (0.24) (0.03) 11.01 1997(6) 10.00 0.12 0.45 (0.11) -- 10.46 Life Vision Growth and Income Portfolio (A) Trust Shares 1999(5) $11.06 $ 0.08 $ 0.69 $(0.06) $ (1.44) $10.33 For the years ended November 30: 1998 10.51 0.18 0.56 (0.18) (0.01) 11.06 1997(6) 10.00 0.09 0.51 (0.09) -- 10.51 Life Vision Maximum Growth Portfolio (A) Trust Shares 1999(5) $11.32 $ 0.02 $ 1.13 $(0.01) $ (1.15) $11.31 For the years ended November 30: 1998 10.65 0.03 0.67 (0.03) -- 11.32 1997(6) 10.00 0.03 0.65 (0.03) -- 10.65 Mid-Cap Equity Fund Trust Shares 1999 $13.79 $ 0.01 $ 0.07 $ -- $ (1.19) $12.68 1998 13.21 -- 2.54 -- (1.96) 13.79 1997 12.76 0.03 1.69 (0.05) (1.22) 13.21 1996 11.00 0.08 2.63 (0.08) (0.87) 12.76 1995 9.85 0.08 1.15 (0.08) -- 11.00 Investor Shares 1999 $13.67 $(0.06) $ 0.08 $ -- $ (1.19) $12.50 1998 13.17 (0.03) 2.49 -- (1.96) 13.67 1997 12.74 (0.03) 1.69 (0.01) (1.22) 13.17 1996 10.99 0.03 2.62 (0.03) (0.87) 12.74 1995 9.84 0.03 1.15 (0.03) -- 10.99 Flex Shares 1999 $13.42 $(0.14) $ 0.08 $ -- $ (1.19) $12.17 1998 13.04 (0.04) 2.38 -- (1.96) 13.42 1997 12.69 (0.07) 1.64 -- (1.22) 13.04 1996(7) 11.13 -- 2.45 (0.02) (0.87) 12.69
+ Returns are for the period indicated and have not been annualized. Total return figures do not include applicable sales loads. (1) Commenced operations on December 1, 1995. All ratios for the period have been annualized. (2) Commenced operations on January 2, 1996. All ratios for the period have been annualized. (3) Commenced operations on June 6, 1994. All ratios for the period have been annualized. (A) On May 24, 1999, the Crestar Life Vision Balanced, Crestar Life Vision Growth and Income, and Crestar Life Vision Maximum Growth Portfolios exchanged all of their assets and certain liabilities for shares of the Life Vision Balanced, Life Vision Growth and Income, and Life Vision Maximum Growth Portfolios, respectively. The Crestar Life Vision Balanced, Crestar Life Vision Growth and Income, and Crestar Life Vision Maximum Growth Portfolios are the accounting survivors in these transactions, and as a result, their basis of accounting for assets and liabilities and their operating results for the periods prior to May 24, 1999 have been carried forward in these financial highlights. 80 - --------------------------------------------------------------------------------
Ratio of Net Assets Ratio of Net Investment Total End of Expenses to Income (Loss) to Return+ Period (000) Average Net Assets Average Net Assets ------- ------------ ------------------ ------------------ International Equity Fund Trust Shares 1999 (7.43%) $573,255 1.47% 0.68% 1998 21.87 628,870 1.47 0.61 1997 23.29 489,325 1.46 0.51 1996(1) 14.00 213,306 1.46 1.36 Investor Shares 1999 (7.82%) $ 14,145 1.83% 0.30% 1998 21.39 17,383 1.82 0.24 1997 22.85 10,674 1.81 0.18 1996(2) 9.00 3,448 1.81 1.73 Flex Shares 1999 (8.48%) $ 17,103 2.53% (0.40%) 1998 20.54 21,164 2.52 (0.46) 1997 21.98 8,375 2.51 (0.27) 1996(2) 8.91 953 2.51 1.08 International Equity Index Fund Trust Shares 1999 7.87% $ 74,616 1.07% 0.69% 1998 25.82 56,200 1.06 0.88 1997 7.48 53,516 1.05 0.71 1996 9.29 90,980 1.05 0.84 1995(3) 2.69 89,446 1.05 1.13 Investor Shares 1999 7.33% $ 4,909 1.47% 0.25% 1998 25.25 7,141 1.46 0.50 1997 7.12 5,592 1.45 0.28 1996 8.90 5,597 1.45 0.48 1995(3) 2.18 3,960 1.45 0.67 Flex Shares 1999 6.68% $ 1,465 2.12% (0.30%) 1998 24.50 1,469 2.11 (0.03) 1997 6.41 900 2.10 (0.39) 1996(4) 8.32 917 2.10 (0.24) Life Vision Balanced Portfolio (A) Trust Shares 1999(5) 6.35% $ 88,188 0.27% 1.90% For the years ended November 30: 1998 7.90 93,211 0.25 2.21 1997(6) 5.70 89,442 0.25 2.66 Life Vision Growth and Income Portfolio (A) Trust Shares 1999(5) 7.75% $ 21,950 0.27% 1.38% For the years ended November 30: 1998 7.12 19,042 0.25 1.68 1997(6) 5.97 22,521 0.25 2.11 Life Vision Maximum Growth Portfolio (A) Trust Shares 1999(5) 10.99% $ 18,699 0.27% 0.28% For the years ended November 30: 1998 6.53 16,230 0.25 0.23 1997(6) 6.82 13,712 0.25 0.72 Mid-Cap Equity Fund Trust Shares 1999 1.61% $254,055 1.17% (0.47%) 1998 21.14 337,825 1.16 (0.29) 1997 14.23 287,370 1.15 0.23 1996 25.54 253,905 1.15 0.70 1995 12.56 125,562 1.15 0.88 Investor Shares 1999 1.17% $ 19,230 1.62% (0.90%) 1998 20.56 24,930 1.61 (0.75) 1997 13.76 20,245 1.60 (0.21) 1996 24.93 17,971 1.60 0.25 1995 11.96 7,345 1.60 0.43 Flex Shares 1999 0.56% $ 15,804 2.22% (1.52%) 1998 19.80 19,042 2.21 (1.37) 1997 13.06 10,120 2.20 (0.85) 1996(7) 23.00 5,029 2.20 (0.37)
- --------------------------------------------------------------------------------
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 -------------------- -------------------- ------------ International Equity Fund Trust Shares 1999 1.52% 0.63% 161% 1998 1.48 0.60 108 1997 1.51 0.46 139 1996(1) 1.65 1.17 113 Investor Shares 1999 1.93% 0.20% 161% 1998 1.91 0.15 108 1997 2.05 (0.06) 139 1996(2) 3.14 0.40 113 Flex Shares 1999 2.82% (0.69%) 161% 1998 2.58 (0.52) 108 1997 3.03 (0.79) 139 1996(2) 5.86 (2.27) 113 International Equity Index Fund Trust Shares 1999 1.17% 0.59% 32% 1998 1.18 0.76 1 1997 1.15 0.61 2 1996 1.19 0.70 30 1995(3) 1.31 0.87 10 Investor Shares 1999 1.71% 0.01% 32% 1998 1.84 0.12 1 1997 1.88 (0.15) 2 1996 2.06 (0.13) 30 1995(3) 2.44 (0.32) 10 Flex Shares 1999 2.92% (1.10%) 32% 1998 3.52 (1.44) 1 1997 3.69 (1.98) 2 1996(4) 4.14 (2.28) 30 Life Vision Balanced Portfolio (A) Trust Shares 1999(5) 0.42% 1.75% 48% For the years ended November 30: 1998 0.42 2.04 52 1997(6) 0.42 2.49 43 Life Vision Growth and Income Portf Trust Shares 1999(5) 0.60% 1.05% 40% For the years ended November 30: 1998 0.59 1.34 57 1997(6) 0.59 1.77 25 Life Vision Maximum Growth Portfoli Trust Shares 1999(5) 0.63% (0.08%) 33% For the years ended November 30: 1998 0.66 (0.18) 75 1997(6) 0.73 0.24 34 Mid-Cap Equity Fund Trust Shares 1999 1.28% (0.58%) 76% 1998 1.27 (0.40) 129 1997 1.26 0.12 152 1996 1.29 0.56 116 1995 1.32 0.71 66 Investor Shares 1999 1.76% (1.04%) 76% 1998 1.84 (0.98) 129 1997 1.85 (0.46) 152 1996 1.96 (0.11) 116 1995 2.27 (0.24) 66 Flex Shares 1999 2.48% (1.78%) 76% 1998 2.47 (1.63) 129 1997 2.58 (1.23) 152 1996(7) 3.04 (1.21) 116
(4) Commenced operations on June 8, 1995. All ratios for the period have been annualized. (5) For the six month period ended May 31, 1999. All ratios for the period have been annualized. (6) Commenced operations on June 30, 1997. All ratios for the period have been annualized. (7) Commenced operations on June 5, 1995. All ratios for the period have been annualized. The accompanying notes are an integral part of the financial statements 81 FINANCIAL HIGHLIGHTS - -------------------------------------------------------------------------------- STI CLASSIC EQUITY FUNDS For the Periods Ended May 31, For a Share Outstanding Throughout the Periods
Net Asset Net Realized and Distributions Value Net Unrealized Gains from Net Distributions Net Asset Beginning Investment (Losses) Investment from Realized Value End of Period Income (Loss) on Investments Income Capital Gains of Period ---------- ------------ --------------- ------------ ------------- --------- Small Cap Equity Fund Trust Shares 1999 $12.88 $ 0.13 $(2.57) $(0.13) $(0.61) $ 9.70 1998 11.07 0.14 2.41 (0.12) (0.62) 12.88 1997(1) 10.00 0.05 1.04 (0.02) -- 11.07 Flex Shares 1999 $12.80 $ 0.01 $(2.53) $(0.02) $(0.61) $ 9.65 1998(2) 11.28 0.03 2.17 (0.06) (0.62) 12.80 Small Cap Growth Stock Fund Trust Shares 1999(3) $10.00 $(0.05) $ 4.62 $ -- $(0.02) $14.55 Flex Shares 1999(3) $10.00 $(0.19) $ 4.67 $ -- $(0.02) $14.46 Sunbelt Equity Fund Trust Shares 1999 $15.12 $(0.28) $(2.84) $ -- $(0.91) $11.09 1998 13.28 0.01 3.03 -- (1.20) 15.12 1997 14.11 (0.09) 0.25 -- (0.99) 13.28 1996 10.03 (0.04) 4.32 -- (0.20) 14.11 1995 9.70 (0.01) 0.38 -- (0.04) 10.03 Investor Shares 1999 $14.77 $(0.33) $(2.77) $ -- $(0.91) $10.76 1998 13.06 (0.07) 2.98 -- (1.20) 14.77 1997 13.95 (0.14) 0.24 -- (0.99) 13.06 1996 9.96 (0.11) 4.30 -- (0.20) 13.95 1995 9.69 (0.05) 0.36 -- (0.04) 9.96 Flex Shares 1999 $14.60 $(0.40) $(2.74) $ -- $(0.91) $10.55 1998 13.00 (0.09) 2.89 -- (1.20) 14.60 1997 13.97 (0.14) 0.16 -- (0.99) 13.00 1996(4) 10.20 (0.07) 4.04 -- (0.20) 13.97 Tax Sensitive Growth Stock Fund Trust Shares 1999(5) $25.61 $ 0.02 $ 4.34 $(0.01) $ -- $29.96 Flex Shares 1999(6) $25.52 $(0.04) $ 4.37 $ -- $ -- $29.85 Value Income Stock Fund Trust Shares 1999 $13.90 $ 0.24 $ 1.02 $(0.24) $(2.07) $12.85 1998 13.71 0.26 2.62 (0.27) (2.42) 13.90 1997 13.15 0.30 2.32 (0.30) (1.76) 13.71 1996 11.59 0.35 2.71 (0.34) (1.16) 13.15 1995 10.54 0.32 1.56 (0.32) (0.51) 11.59 Investor Shares 1999 $13.87 $ 0.19 $ 1.02 $(0.20) $(2.07) $12.81 1998 13.68 0.20 2.62 (0.21) (2.42) 13.87 1997 13.13 0.25 2.32 (0.26) (1.76) 13.68 1996 11.58 0.30 2.71 (0.30) (1.16) 13.13 1995 10.52 0.28 1.56 (0.27) (0.51) 11.58 Flex Shares 1999 $13.75 $ 0.10 $ 1.01 $(0.11) $(2.07) $12.68 1998 13.61 0.12 2.57 (0.13) (2.42) 13.75 1997 13.08 0.18 2.29 (0.18) (1.76) 13.61 1996(7) 11.59 0.26 2.65 (0.26) (1.16) 13.08
+ Returns are for the period indicated and have not been annualized. Total return figures do not include applicable sales loads. (1) Commenced operations on January 31, 1997. All ratios for the period have been annualized. (2) Commenced operations on June 5, 1997. All ratios for the period have been annualized. (3) Commenced operations on October 8, 1998. All ratios for the period have been annualized. (4) Commenced operations on June 5, 1995. All ratios for the period have been annualized. (5) Commenced operations on December 11, 1998. All ratios for the period have been annualized. (6) Commenced operations on December 15, 1998. All ratios for the period have been annualized. (7) Commenced operations on June 1, 1995. All ratios for the period have been annualized. 82 - --------------------------------------------------------------------------------
Ratio of Ratio of Expenses to Net Assets Ratio of Net Investment Average Net Assets Total End of Expenses to Income (Loss) to (Excluding Waivers Return+ Period (000) Average Net Assets Average Net Assets and Reimbursements) -------- ------------ ------------------ ------------------ ------------------- Small Cap Equity Fund Trust Shares 1999 (18.72%) $ 301,984 1.22% 1.27% 1.27% 1998 23.59 390,841 1.21 1.07 1.31 1997(1) 10.97 131,049 1.20 1.86 1.37 Flex Shares 1999 (19.52%) $ 19,465 2.27% 0.21% 2.55% 1998(2) 22.29 40,613 2.06 0.01 2.35 Small Cap Growth Stock Fund Trust Shares 1999(3) 45.70% $ 152,290 1.20% (0.42%) 1.49% Flex Shares 1999(3) 44.78% $ 6,158 2.25% (1.50%) 3.19% Sunbelt Equity Fund Trust Shares 1999 (20.46%) $ 197,215 1.17% (0.68%) 1.30% 1998 23.86 431,921 1.16 (0.90) 1.27 1997 1.48 381,371 1.15 (0.65) 1.26 1996 43.19 412,430 1.15 (0.34) 1.28 1995 3.81 258,908 1.15 (0.12) 1.30 Investor Shares 1999 (20.75%) $ 16,949 1.62% (1.12%) 1.78% 1998 23.25 30,860 1.61 (1.35) 1.86 1997 1.05 28,095 1.60 (1.10) 1.84 1996 42.58 29,002 1.60 (0.79) 1.93 1995 3.20 22,180 1.60 (0.57) 1.98 Flex Shares 1999 (21.28%) $ 4,395 2.22% (1.74%) 2.66% 1998 22.48 8,070 2.21 (1.96) 2.58 1997 0.46 5,689 2.20 (1.72) 2.69 1996(4) 39.86 2,705 2.20 (1.43) 3.62 Tax Sensitive Growth Stock Fund Trust Shares 1999(5) 17.04% $ 223,543 1.20% 0.21% 1.34% Flex Shares 1999(6) 16.97% $ 75,875 2.25% (0.80%) 2.48% Value Income Stock Fund Trust Shares 1999 11.13% $1,589,951 0.92% 1.91% 0.92% 1998 23.10 1,725,418 0.92 1.85 0.92 1997 22.18 1,488,062 0.91 2.40 0.91 1996 27.91 1,244,399 0.92 2.86 0.92 1995 19.06 991,977 0.95 3.16 0.95 Investor Shares 1999 10.71% $ 194,312 1.28% 1.55% 1.28% 1998 22.71 210,591 1.27 1.47 1.27 1997 21.69 165,999 1.30 2.01 1.31 1996 27.39 130,597 1.30 2.47 1.37 1995 18.71 92,256 1.30 2.80 1.41 Flex Shares 1999 9.91% $ 167,000 2.02% 0.81% 2.03% 1998 21.76 180,530 2.01 0.78 2.01 1997 20.91 73,466 2.00 1.33 2.03 1996(7) 26.52 26,298 2.00 1.72 2.15
- --------------------------------------------------------------------------------
Ratio of Net Investment Income (Loss) to Average Net Assets Portfolio (Excluding Waivers Turnover and Reimbursements) Rate ------------------- --------- Small Cap Equity Fund Trust Shares 1999 1.22% 63% 1998 0.97 55 1997(1) 1.69 27 Flex Shares 1999 (0.07%) 63% 1998(2) (0.28) 55 Small Cap Growth Stock Fund Trust Shares 1999(3) (0.77%) 75% Flex Shares 1999(3) (2.44%) 75% Sunbelt Equity Fund Trust Shares 1999 (0.81%) 84% 1998 (1.01) 70 1997 (0.76) 72 1996 (0.47) 106 1995 (0.27) 80 Investor Shares 1999 (1.28%) 84% 1998 (1.60) 70 1997 (1.34) 72 1996 (1.12) 106 1995 (0.95) 80 Flex Shares 1999 (2.18%) 84% 1998 (2.33) 70 1997 (2.21) 72 1996(4) (2.85) 106 Tax Sensitive Growth Stock Fund Trust Shares 1999(5) 0.047% 18% Flex Shares 1999(6) (1.03%) 18% Value Income Stock Fund Trust Shares 1999 1.91% 69% 1998 1.85 99 1997 2.40 105 1996 2.86 134 1995 3.16 126 Investor Shares 1999 1.55% 69% 1998 1.47 99 1997 2.00 105 1996 2.40 134 1995 2.69 126 Flex Shares 1999 0.80% 69% 1998 0.78 99 1997 1.30 105 1996(7) 1.57 134
The accompanying notes are an integral part of the financial statements 83 NOTES TO FINANCIAL STATEMENTS - -------------------------------------------------------------------------------- STI CLASSIC EQUITY FUNDS May 31, 1999 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 thirty-four portfolios as of May 31, 1999: the Balanced Fund, the Capital Appreciation Fund (formerly Capital Growth Fund), the Emerging Markets Equity Fund, the Growth and Income Fund, the International Equity Fund, the International Equity Index Fund, the Life Vision Balanced Portfolio, the Life Vision Growth and Income Portfolio, the Life Vision Maximum Growth Portfolio, the Mid-Cap Equity Fund, the Small Cap Equity Fund, the Small Cap Growth Stock Fund, the Sunbelt Equity Fund, the Tax Sensitive Growth Stock Fund, the Value Income Stock Fund, (collectively the "Equity Funds"), 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 Maryland Municipal Bond Fund, the Short-Term Bond Fund, the Short-Term U.S. Treasury Securities Fund, and the U.S. Government Securities Fund, the Virginia Intermediate Municipal Bond Fund, the Virginia Municipal Bond Fund, (collectively the "Fixed Income Funds"), the Prime Quality Money Market Fund, the Tax-Exempt Money Market Fund, the Tax-Free Money Market Fund, the U.S. Government Securities, the U.S. Treasury Money Market Fund (collectively the "Retail Money Market Funds"), the Classic Institutional Cash Management Money Market Fund, the Classic Institutional U.S. Government Securities Money Market Fund and the Classic Institutional U.S. Treasury Securities Money Market Fund, (collectively the "Institutional 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 presented herein are those of the Equity Funds. The financial statements of the Fixed Income Funds, Institutional Money Market Funds and Retail Money Market Funds are not presented herein, but presented separately. On February 17, 1999 and February 19, 1999, respectively, the Board of Trustees of the STI Classic Funds and Board of Directors of the CrestFunds, Inc. ("CrestFunds") approved an Agreement and Plan of Reorganization (the "Reorganization Agreement") providing for the transfer of all assets and liabilities of the CrestFunds in exchange for the issuance of shares in the Funds in a tax-free reorganization (see Note 8). 2. Significant Accounting Policies: The following is a summary of significant accounting policies followed by the Trust. Basis of Presentation of Statements -- As more fully described in Note 8, the STI Classic Funds acquired certain Crestar Funds in a tax-free business combination. While each Fund now exists as an STI Classic Fund, a number of the surviving funds for accounting purposes are Crestar Funds. In accordance with generally accepted accounting principles, the financial statements presented herein represent those of accounting survivors. Accordingly, the Statements of Operations, Statements of Changes in Net Assets and Financial Highlights presented reflect periods beginning on the first day of the accounting survivor's fiscal year. Security Valuation -- Investment securities held by the Equity 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 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, 84 - -------------------------------------------------------------------------------- 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. 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 Appreciation, the Growth and Income, the International Equity, the International Equity Index, the Mid-Cap Equity, the Sunbelt Equity, and the Value Income Stock Funds is equal to the net asset value per share plus a sales load of 3.75%. 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 Balanced Fund 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." 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 are declared and paid each calendar quarter by the Equity Funds, except for the Emerging Markets Equity, the International Equity, and the International Equity Index Funds. These funds distribute income annually. Any net realized capital gains on sales of securities are distributed to shareholders at least annually. Reclassification of Components of Net Assets -- The timing and characterization of certain income and capital gains distributions are determined annually in accordance with federal tax regulations which may differ from generally accepted accounting principles. As a result, net investment income (loss) and net realized gain (loss) on investment transactions for a reporting period may differ significantly from distributions during such period. These book/tax differences may be temporary or permanent in nature. To the extent these differences are permanent, they are charged or credited to paid-in-capital or accumulated net realized gain, as appropriate, in the period that the differences arise. Accordingly, the following permanent differences, primarily attributable to net operating losses and the classification of short-term capital gains and ordinary income for tax purposes, have been reclassified to/from the following accounts: Undistributed Accumulated Net Investment Paid-in-Capital Realized Gain/ Income/(Loss) (000) (Loss) (000) (000) ---------------------------------- -------------- Capital Appreciation Fund.................. $ (175) $ -- $ 175 Emerging Markets Equity Fund........... -- (11) 11 Growth and Income Fund.. (74) -- 74 Life Vision Balanced Portfolio............. (11) -- 11 International Equity Fund.................. -- 4 (4) International Equity Index Fund........... -- (240) 240 Life Vision Growth and Income Portfolio..... (2) 31 (29) Life Vision Maximum Growth Portfolio...... (2) -- 2 Mid-Cap Equity Fund..... (1,783) (3) 1,786 Small Cap Equity Fund.................. -- 4 (4) Small Cap Growth Stock Fund.................. (120) (146) 266 Sunbelt Equity Fund..... (2,424) 43 2,381 Tax Sensitive Growth Stock Fund............ -- (48) 48 85 NOTES TO FINANCIAL STATEMENTS (continued) - -------------------------------------------------------------------------------- STI CLASSIC EQUITY FUNDS May 31, 1999 These reclassifications have no effect on net assets or net asset values per share. 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 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 over a period of sixty months. 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. 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 and March 1, 1999 under which the Administrator provides administrative services for an annual fee (expressed as a percentage of the combined average daily net assets of the Trust and STI Classic Variable Trust) of: .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. Prior to May 24, 1999, administrative and accounting services were provided to the CrestFunds by SEI Investments Mutual Funds Services who was entitled to receive a fee at an annual rate of .15% of the average daily net assets of the CrestFunds. Additionally, SEI Investments Mutual Funds Services was entitled to receive a minimum annual fee of $40,000 for each of the Life Vision Portfolios. 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". Prior to May 24, 1999, the Distributor, a wholly owned subsidiary of SEI Investments Co., served as distributor of each of the CrestFunds shares pursuant to an agreement with the Company. The Trust Class and Investors Class A shares of the CrestFunds had a separate distribution plan (the 12b-1 Plan) pursuant to Rule 12b-1 under the 1940 Act. As provided in the 12b-1 Plan, the Trust Class and Investors Class A shares of the CrestFunds paid the Distributor as compensation for its services .15% of the aggregate average daily net assets of such classes of the CrestFunds. The Distributor had voluntarily agreed to waive any fees payable pursuant to the 12b-1 Plan except for the Value Fund Investors Class A for which after April 15, 1999, eliminated the waiver. Additionally, the Investors Class B Shares of the CrestFunds had a distribution plan (the B Shares Plan) pursuant to Rule 12b-1 under the 1940 Act. As provided in the B Shares Plan, the Investors Class B Shares of the CrestFunds paid the Distributor as compensation for its services .75% of the aggregate average daily net assets of such class of the Funds. In addition, pursuant to the B Shares Plan, the Distributor was compensated at an annual rate of .25% of the B shares' average net assets for providing ongoing Shareholder support services to investors in B shares. The Distributor had agreed to waive a portion of its fees pursuant to the B Shares Plan in order to limit Distribution Fees to .95% for each Fund, except for the Value Fund for which the limit was .90%. Prior to April 15, 1999, the limit was .75% for the Value Fund. Prior to May 24, 1999, the CrestFunds had adopted a shareholder service plan (the "Plan") for Trust Class Shares of the Value Fund, Capital Appreciation Fund and Special Equity Fund. Under the Plan, these Fund's paid the Distributor a negotiated fee at a rate of up to .25% annually of the average daily net assets of such Fund attributable to the shares that are subject to the arrangement in return for provision of a broad range of shareholder and administrative services. The Distributor had agreed to waive a portion of its shareholder service plan for trust class shares in order to limit shareholder service fees to .10%. 86 - -------------------------------------------------------------------------------- 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: Growth and Income Fund .................... .90% 1.01% .25% 1.18% 1.00% 1.93% Life Vision Balanced Portfolio ...................... .25% .25% -- -- -- -- Life Vision Growth and Income Portfolio ...................... .25% .25 -- -- -- -- Life Vision Maximum Growth Portfolio ...................... .25% .25% -- -- -- -- 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% Tax Sensitive Growth Stock Fund ........................... 1.15% 1.20% -- -- 1.00% 2.25% STI Capital Management, N.A.: Balanced Fund ........................... .95% .97% .28% 1.27% 1.00% 2.03% Capital Appreciation 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%
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. Prior to May 24, 1999 Crestar Asset Management Company ("CAMCO") provided investment advisory services to the CrestFunds. CAMCO was paid for advisory services at an annual rate of .75% of average daily net assets for the Capital Appreciation Fund, Value Fund and Special Equity Fund, and .25% of average daily net assets for the Life Vision Balanced Fund, Life Vision Growth and Income Fund, and Life Vision Maximum Growth Fund. 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 May 31, 1999, were as follows: Purchases Sales (000) (000) ---------- -------- Balanced Fund .................................... $ 315,830 $ 268,552 Capital Appreciation Fund ........................ 2,986,076 2,742,705 Emerging Markets Equity Fund ..................... 16,762 21,044 Growth and Income Fund ........................... 199,292 206,221 International Equity Fund ........................ 931,039 926,353 International Equity Index Fund .................. 34,263 19,833 Life Vision Balanced Portfolio ................... 43,858 51,437 Life Vision Growth and Income Portfolio .......... 10,263 8,165 Life Vision Maximum Growth Portfolio ............. 7,051 5,893 Mid-Cap Equity Fund .............................. 235,353 332,718 Small Cap Equity Fund ............................ 200,349 231,019 Small Cap Growth Stock Fund ...................... 192,444 41,977 Sunbelt Equity Fund .............................. 273,317 428,696 Tax Sensitive Growth Stock Fund .................. 195,255 33,468 Value Income Stock Fund .......................... 1,237,452 1,543,957 The cost of U.S. Government security purchases and the proceeds from the sale of U.S. Government Securities for the Balanced Fund during the period ended May 31, 1999, were $189,416 and $165,912, respectively. At May 31, 1999, the Emerging Markets Equity Fund, Small Cap Equity Fund and Sunbelt Equity Fund had capital loss carryforwards for federal tax purposes of $4,447,790, $16,347,746 and $3,453,741, respectively, resulting from security sales. For tax purposes, the losses in the funds can be carried forward for a maximum of eight years to offset any net realized capital gains. The carryforward for each of the funds expires in May 2007. 87 NOTES TO FINANCIAL STATEMENTS (concluded) - -------------------------------------------------------------------------------- STI CLASSIC EQUITY FUNDS May 31, 1999 The following Funds had cumulative wash sales for the fiscal year ended May 31, 1999: Fund Amount - ---- ------ Balanced Fund ..................................... $ 907,255 Capital Appreciation Fund ......................... 1,727,191 Emerging Money Markets Equity Fund ................ 33,873 Growth and Income Fund ............................ 254,155 International Equity Fund ......................... 1,799,430 Life Vision Balanced Portfolio .................... 256,794 Life Vision Growth and Income Portfolio ....................................... 230,291 Mid-Cap EquityFund ................................ 303,398 Small Cap Equity Fund ............................. 849,386 Small Cap Growth Stock Fund ....................... 382,100 Sunbelt Equity Fund ............................... 3,289,602 The wash sale losses cannot be used for Federal income tax purposes and are deferred. Subsequent to October 31, 1998, the Fund recognized net capital losses for tax purposes of $3,057,379, $31,417,083, and $9,959,452 in the Emerging Markets Equity, Small Cap Equity, and Sunbelt Equity Funds, respectively, that have been deferred to 1999 and can be used to offset future capital gains at May 31, 1999. At May 31, 1999, 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 May 31, 1999, were as follows: Aggregate Aggregate Net Gross Gross Unrealized Unrealized Unrealized Appreciation/ Appreciation Depreciation Depreciation ------------ ------------ ------------ Balanced Fund ..................... $ 43,946 $ (6,383) $ 37,563 Capital Appreciation Fund ......... 599,142 (53,463) 545,679 Emerging Markets Equity Fund ...... 3,887 (5,989) (2,102) Growth and Income Fund ............ 186,417 (9,020) 177,397 International Equity Fund ......... 62,199 (24,918) 37,281 International Equity Index Fund ... 19,507 (5,110) 14,397 Life Vision Balanced Portfolio .... 6,479 (1,435) 5,044 Life Vision Growth and Income Portfolio ............... 1,601 (256) 1,345 Life Vision Maximum Growth Portfolio ............... 2,052 (209) 1,843 Mid-Cap Equity Fund ............... 46,226 (17,128) 29,098 Small Cap Equity Fund ............. 18,487 (34,256) (15,769) Small Cap Growth Stock Fund ....... 19,400 (6,020) 13,380 Sunbelt Equity Fund ............... 57,241 (9,250) 47,991 Tax Sensitive Growth Stock Fund ... 61,975 (1,644) 60,331 Value Income Stock Fund ........... 204,487 (76,846) 127,641 7. Common Trust Fund Conversion On December 11, 1998, the SunTrust Quality Growth Stock Common Trust Fund of SunTrust was converted into the STI Classic Tax Sensitive Growth Stock Fund. The assets, which consisted of securities and related receivables, were converted on a tax free basis. At the time of conversion 3,874,558 of Trust Class shares were issued. The net assets of the Sun Trust Quality Growth Stock Common Trust Fund immediately before the conversion were $99,222,180, which included unrealized appreciation of $45,523,361. 88 - -------------------------------------------------------------------------------- 8. CrestFunds Merger The Board of Directors and shareholders of the CrestFunds approved a reorganization of the CrestFunds into STI Classic Funds which took place at the close of business on May 17, 1999 (May 24, 1999 for Growth and Income Fund, Life Vision Balanced Portfolio, Life Vision Growth and Income Portfolio, Life Vision Maximum Growth Portfolio). The following table summarizes certain relevant information of the Funds prior to and immediately after the business combinations on May 17, 1999 and May 24, 1999 and is unaudited: Shares Outstanding Unrealized on Merger Appreciation CrestFunds Date (Depreciation) - ---------- ----------- -------------- Capital Appreciation Trust Shares ........................ 7,017,951 $ 50,852,434 Investor Class A .................... 634,910 4,570,273 Investor Class B .................... 405,693 945,904 Special Equity Trust Shares ........................ 6,434,126 8,484,235 Investor Class A .................... 335,109 461,214 Investor Class B .................... 439,353 (115,351) Value Fund (1) Trust Shares ........................ 39,426,216 185,105,926 Investor Class A .................... 2,284,756 7,740,403 Investor Class B .................... 2,164,932 4,552,822 Life Vision Balanced (1) Trust Shares ........................ 8,168,631 6,271,120 Life Vision Growth and Income (1) Trust Shares ........................ 2,130,709 1,682,009 Life Vision Maximum Growth (1) Trust Shares ........................ 1,650,909 2,180,220 * Investor Class A shares of CrestFund Special Equity were exchanged for Trust Shares of STI Small Cap Growth Stock. (1) Represents the accounting survivor in this business combination. Shares Issued Net Assets NAV in Business after Per STI Classic Fund Combination Combination Share - ---------------- ----------- ----------- ----- Capital Appreciation (1) Trust Shares ................... 8,202,045 $2,043,356,370 $ 17.02 Investor Shares ................ 738,260 321,669,847 16.93 Flex Shares .................... 474,357 165,340,901 16.58 Small Cap Growth Stock (1) Trust Shares ................... 6,174,359 153,356,352 14.40 Investor Shares ................ -- -- -- Flex Shares .................... 188,473 5,980,718 14.32 Growth and Income Trust Shares ................... 39,426,216 649,230,675 16.47 Investor Shares ................ 2,284,756 37,909,335 16.59 Flex Shares .................... 2,164,932 35,677,567 16.48 Life Vision Balanced Trust Shares ................... 8,168,631 89,406,305 10.95 Life Vision Growth and Income Trust Shares ................... 2,130,709 22,352,880 10.49 Life Vision Maximum Growth Trust Shares ................... 1,650,909 19,002,404 11.51 89 REPORT OF INDEPENDENT PUBLIC ACCOUNTANTS - -------------------------------------------------------------------------------- STI CLASSIC EQUITY FUNDS May 31, 1999 To the Shareholders and Board of Trustees of STI Classic Funds: We have audited the accompanying statements of net assets of the Balanced, Capital Appreciation, Emerging Markets Equity, Growth & Income, International Equity, Mid-Cap Equity, Small Cap Equity, Small Cap Growth, Sunbelt Equity, Tax Sensitive Growth, Value Income Stock Funds, Life Vision Balanced, Life Vision Growth & Income, and Life Vision Maximum Growth Portfolios, and the statements of assets and liabilities, including the schedule of investments, of the International Equity Index Funds of STI Classic Funds (the "Trust") as of May 31, 1999, and the related statements of operations, changes in net assets, and financial highlights for the periods presented, excluding the period indicated below. These financial statements and financial highlights are the responsibility of the Trust's management. Our responsibility is to express an opinion on these financial statements and financial highlights based on our audits. The statements of operations for the year ended November 30, 1998, statements of changes for the years ended November 30, 1998 and November 30, 1997, and financial highlights for the periods prior to May 31, 1999, for the Growth & Income Fund, Life Vision Balanced, Life Vision Growth & Income, and Life Vision Maximum Growth Portfolios were audited by other auditors whose report dated January 15, 1999, expressed an unqualified opinion on this information. We conducted our audits in accordance with generally accepted auditing standards. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements and financial highlights are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements and financial highlights. Our procedures included confirmation of securities owned as of May 31, 1999, by correspondence with the custodian and the application of alternative auditing procedures with respect to unsettled securities transactions. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion. In our opinion, the financial statements and financial highlights audited by us present fairly, in all material respects, the financial position of the Balanced, Capital Appreciation, Emerging Markets Equity, Growth & Income, International Equity, International Equity Index, Mid-Cap Equity, Small Cap Equity, Small Cap Growth, Sunbelt Equity, Tax Sensitive Growth, and Value Income Stock Funds, the Life Vision Balanced Life Vision Growth & Income, and Life Vision Maximum Growth Portfolios, of STI Classic Funds as of May 31, 1999, the results of their operations, changes in their net assets, and financial highlights for each of the periods described in the first paragraph above, in conformity with generally accepted accounting principles. ARTHUR ANDERSEN LLP Philadelphia, Pennsylvania July 23, 1999 90 NOTICE TO SHAREHOLDERS - --------------------------------------------------------------------------------------------------------------------------- STI CLASSIC EQUITY FUNDS May 31, 1999 Unaudited
For shareholders that do not have a May 31, 1999 tax year end, this notice is for informational purposes only. For shareholders with a May 31, 1999 tax year end, please consult your tax advisor as to the pertinence of this notice. For the fiscal year ended May 31, 1999, each portfolio is designating the following items with regard to distributions paid during the year:
Long Term Foreign (20% Rate) Ordinary Tax Capital Gains Income Tax-Exempt Total Qualifying Withholding Fund Distributions Distributions Interest Distributions Dividends(1) Pass Through(2) - -------------------------------------- ------------- ------------- ---------- ------------- ---------- -------------- Balanced Fund 35.30% 64.70% 0.00% 100.00% 11.74% --% Capital Appreciation Fund 54.78% 45.22% 0.00% 100.00% 14.67% --% Emerging Markets Equity Fund 0.00% 100.00% 0.00% 100.00% 0.00% 11.35% Growth and Income Fund 80.44% 19.56% 0.00% 100.00% 90.34% --% International Equity Fund 53.89% 46.11% 0.00% 100.00% 0.00% 4.52% International Equity Index Fund 86.80% 13.20% 0.00% 100.00% 0.00% 6.19% Life Vision Balanced Portfolio 41.73% 58.27% 0.00% 100.00% 36.19% --% Life Vision Growth and Income Portfolio 46.39% 53.61% 0.00% 100.00% 46.82% --% Life Vision Maximum Growth Portfolio 50.94% 49.06% 0.00% 100.00% 76.43% --% Mid-Cap Equity Fund 46.90% 53.10% 0.00% 100.00% 10.81% --% Small Cap Equity Fund 16.78% 83.22% 0.00% 100.00% 38.00% --% Small Cap Growth Stock Fund 0.00% 100.00% 0.00% 100.00% 11.73% --% Sunbelt Equity Fund 71.61% 28.39% 0.00% 100.00% 0.00% --% Tax Sensitive Growth Stock Fund 0.00% 100.00% 0.00% 100.00% 89.31% --% Value Income Stock Fund 48.03% 51.97% 0.00% 100.00% 59.02% --%
- ------------------ (1) Qualifying dividends represent dividends which qualify for the corporate dividends received deduction and is reflected as a percentage of "Ordinary Income Distribution". (2) Foreign tax credit pass through represents the amount eligible for the foreign tax credit and is reflected as a percentage of "Ordinary Income Distribution". 91 NOTES 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. -----END PRIVACY-ENHANCED MESSAGE-----