-----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, QRSv2DJBLxI7ykZGcQEFXPH39B8xJVzWkRzHq6zblX/A9oQEXDelvdQqU0xblVmB uNYEcRKfdoJ1w/ukJvPQNw== 0000935069-99-000143.txt : 19990811 0000935069-99-000143.hdr.sgml : 19990811 ACCESSION NUMBER: 0000935069-99-000143 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: 99676813 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 FUNDS A Family of Mutual Funds Classic Institutional Cash Management Money Market Fund Classic Institutional U.S. Government Securities Money Market Fund Classic Institutional U.S. Treasury Securities Money Market Fund May 31, 1999 [STI Classic Funds LOGO] STATEMENT OF NET ASSETS - -------------------------------------------------------------------------------- STI CLASSIC FUNDS May 31, 1999 Classic Institutional Cash Management Money Market Fund - -------------------------------------------------------------------------------- Face Amount (000) Value (000) - -------------------------------------------------------------------------------- Commercial Paper (32.2%) Finance (23.1%) Allstate 4.830%, 07/22/99 $10,000 $ 9,932 Associates Corporation NA 4.800%, 06/14/99 25,000 24,957 Bank of Montreal 4.810%, 07/19/99 25,000 24,840 BankAmerica 4.830%, 10/27/99 15,000 14,702 Den Norske Bank 4.860%, 08/10/99 15,000 14,858 4.950%, 11/16/99 35,000 34,191 Deutsche Bank Financial 4.800%, 06/28/99 50,000 49,820 Ford Motor Credit 4.800%, 06/01/99 2,000 2,000 4.730%, 08/31/99 20,000 19,761 General Electric Capital 4.800%, 06/10/99 1,750 1,748 4.800%, 06/11/99 2,055 2,052 4.820%, 07/16/99 6,500 6,461 4.830%, 07/30/99 835 828 4.730%, 08/19/99 30,000 29,689 General Motors Acceptance 4.670%, 10/20/99 45,000 44,177 Goldman Sachs Group 4.770%, 09/17/99 25,000 24,642 IBM Credit 4.820%, 06/03/99 1,580 1,580 John Hancock 4.810%, 07/15/99 770 765 JP Morgan 4.850%, 07/07/99 304 303 4.812%, 10/06/99 800 786 - -------------------------------------------------------------------------------- Face Amount (000) Value (000) - -------------------------------------------------------------------------------- Finance--continued KFW International Finance 4.830%, 06/21/99 $ 700 $ 698 4.790%, 06/24/99 1,200 1,196 4.810%, 06/24/99 1,300 1,296 4.810%, 07/06/99 330 328 4.820%, 10/04/99 500 492 Merrill Lynch 4.820%, 06/17/99 30,000 29,936 Progress Capital 4.820%, 06/11/99 1,205 1,203 Sigma Finance 4.850%, 11/17/99 25,000 24,431 St Paul 4.800%, 06/17/99 20,000 19,957 UBS Finance 4.930%, 12/21/99 35,000 34,027 4.780%, 12/23/99 15,000 14,592 -------- 436,248 -------- Industrial (8.9%) AES Shady Point 4.790%, 06/01/99 18,000 18,000 American Home Product 4.790%, 06/02/99 900 900 AT&T 4.810%, 07/28/99 20,000 19,848 Allied Signal 4.820%, 06/16/99 2,200 2,196 Dupont (EI) de Nemours 4.830%, 06/07/99 400 400 Eastman Kodak 4.820%, 07/22/99 500 497 4.840%, 09/20/99 15,000 14,776 Edison International 4.820%, 08/02/99 25,000 24,792 4.850%, 08/16/99 10,000 9,898 1 STATEMENT OF NET ASSETS - -------------------------------------------------------------------------------- STI CLASSIC FUNDS May 31, 1999 Classic Institutional Cash Management Money Market Fund--continued - -------------------------------------------------------------------------------- Face Amount (000) Value (000) - -------------------------------------------------------------------------------- Industrial--continued Fortune Brand 4.866%, 07/22/99 $ 948 $ 942 Gannett 4.820%, 06/14/99 500 499 General Electric 4.810%, 06/18/99 300 299 4.830%, 07/28/99 2,400 2,382 J.C. Penney 5.040%, 07/29/99 8,000 7,936 Motorola Credit 4.830%, 06/11/99 500 499 South Carolina Fuel 4.800%, 06/07/99 23,644 23,625 Walt Disney 4.460%, 07/13/99 40,000 39,792 -------- 167,281 -------- Utilities (0.2%) GTE 4.820%, 06/07/99 3,800 3,797 -------- Total Commercial Paper (Cost $607,326) 607,326 -------- Corporate Obligations (35.7%) Finance (33.8%) American Express Centurion (B) 4.968%, 06/07/99 9,300 9,300 5.060%, 06/01/99 15,000 15,000 4.980%, 06/02/99 35,000 35,000 American Express Credit 8.500%, 06/15/99 400 401 American General Finance 6.875%, 07/01/99 100 100 American General Finance, MTN 6.370%, 10/29/99 5,000 5,026 Associates Corporation NA 7.250%, 09/01/99 2,500 2,513 6.000%, 03/15/00 150 151 - -------------------------------------------------------------------------------- Face Amount (000) Value (000) - -------------------------------------------------------------------------------- Finance--continued Associates Corporation NA (B) 4.890%, 06/01/99 $20,000 $19,997 Associates Corporation NA , MTN 6.750%, 06/28/99 5,000 5,003 Associates Corporation NA, Ser F, MTN 6.125%, 11/01/99 500 502 Bayerische Hypotheken Bank 6.125%, 12/30/99 227 228 Bayerische Hypotheken Bank, MTN 6.750%, 10/04/99 663 666 6.125%, 11/08/99 825 827 6.250%, 12/30/99 150 151 6.000%, 01/07/00 416 417 Bayerische Hypo-Vereinsbank, MTN 6.625%, 07/02/99 142 142 4.625%, 11/12/99 209 208 6.000%, 12/10/99 206 207 Bear Stearns 4.940%, 06/19/00 35,000 35,000 Bear Stearns, MTN 5.715%, 07/30/99 15,000 15,000 Bear Stearns, MTN (B) 5.029%, 06/18/99 15,000 15,000 Beneficial, MTN (B) 5.100%, 06/01/99 10,000 10,011 Beta Finance (B) 4.850%, 06/01/99 25,000 25,000 Beta Finance, MTN (B) 5.520%, 06/01/99 25,000 25,000 4.940%, 07/15/99 15,000 15,000 Branch Banking and Trust (B) 5.030%, 06/01/99 35,000 34,987 British Telecom Finance, MTN 8.750%, 08/11/99 100 101 Caterpillar Financial, MTN 5.750%, 01/31/00 122 122 2 - -------------------------------------------------------------------------------- Face Amount (000) Value (000) - -------------------------------------------------------------------------------- Finance--continued Caterpillar Financial Services, MTN 6.800%, 07/01/99 $ 250 $ 250 Chrysler Financial 9.500%, 12/15/99 7,086 7,249 Chrysler Financial, MTN 6.375%, 01/28/00 3,750 3,780 Commerzbank, MTN 4.625%, 07/23/99 370 370 5.125%, 03/07/00 148 148 Credit Suisse First Boston (A) (B) 4.800%, 06/01/99 35,000 34,996 Credit Suisse First Boston (B) 4.860%, 06/01/99 15,000 15,000 Credit Suisse First Boston International, MTN 5.400%, 03/20/00 20,000 20,000 Deutsche Bank, MTN 6.125%, 11/08/99 386 387 6.500%, 12/29/99 677 682 Dresdner Finance, MTN 5.500%, 12/21/99 475 475 Exxon Capital 6.500%, 07/15/99 100 100 First Union Bank (B) 4.810%, 06/01/99 25,000 25,000 5.040%, 06/01/99 25,000 24,995 5.020%, 08/19/99 20,000 20,000 Ford Holdings 9.250%, 03/01/00 3,940 4,054 Ford Motor Credit 8.875%, 06/15/99 1,000 1,001 6.375%, 09/15/99 850 853 Ford Motor Credit, MTN 6.125%, 12/03/99 870 873 8.625%, 01/24/00 344 351 - -------------------------------------------------------------------------------- Face Amount (000) Value (000) - -------------------------------------------------------------------------------- Finance--continued General Electric Capital Canada Financial, MTN 8.750%, 10/25/99 $ 365 $ 370 General Electric Capital, MTN 5.430%, 01/17/00 100 100 5.840%, 03/30/00 150 151 General Motors Acceptance 8.400%, 10/15/99 200 202 7.000%, 03/01/00 195 197 General Motors Acceptance, MTN 6.750%, 09/30/99 215 216 6.250%, 01/06/00 500 503 8.500%, 01/31/00 2,000 2,044 General Motors Acceptance, MTN (B) 4.830%, 07/06/99 2,000 2,000 Goldman Sachs Group, MTN 5.280%, 02/24/00 10,000 10,000 Helaba Finance Bank, MTN 5.750%, 12/21/99 464 465 IBM Credit (B) 4.950%, 06/15/99 10,000 10,000 IBM Credit, MTN 6.750%, 08/09/99 215 216 Inter-America Development Bank, MTN 6.250%, 12/31/99 145 146 International Bank Reconstruction and Development, MTN 6.000%, 07/14/99 318 318 5.150%, 03/23/00 326 325 International Lease Finance 6.500%, 08/15/99 1,000 1,003 International Lease Finance, MTN 5.960%, 07/07/99 500 500 JP Morgan, MTN (B) 5.060%, 06/01/99 20,000 20,000 3 STATEMENT OF NET ASSETS - -------------------------------------------------------------------------------- STI CLASSIC FUNDS May 31, 1999 Classic Institutional Cash Management Money Market Fund--continued - -------------------------------------------------------------------------------- Face Amount (000) Value (000) - -------------------------------------------------------------------------------- Finance--continued Merrill Lynch (B) 5.090%, 06/01/99 $ 15,000 $ 15,000 Merrill Lynch, MTN 6.070%, 09/27/99 300 301 Morgan Guaranty Trust, MTN 6.625%, 07/16/99 377 378 Morgan Stanley Dean Witter 6.250%, 03/15/00 1,500 1,512 Morgan Stanley Dean Witter, MTN (B) 5.108%, 08/23/99 10,000 10,008 National City 6.750%, 06/01/99 10,000 10,000 Nationsbank (B) 5.060%, 06/03/99 10,000 10,003 Norwest Financial, MTN 6.050%, 11/19/99 200 201 PNC Bank (B) 4.790%, 06/01/99 10,000 10,000 4.779%, 06/03/99 10,000 9,999 Rabobank, MTN 6.500%, 08/16/99 416 417 6.000%, 12/31/99 122 123 6.375%, 12/31/99 223 224 Sigma Finance (A) 5.305%, 03/13/00 15,000 15,000 Sigma Finance, MTN 5.350%, 05/22/00 25,000 25,000 Tampa Bay Devil Rays (B) 5.000%, 06/03/99 45,000 45,000 Texas State 5.850%, 12/01/99 1,250 1,254 Toronto Dominion Bank, MTN 6.500%, 03/27/00 509 513 Toyota Motor Credit, MTN 6.500%, 09/30/99 170 171 5.750%, 12/20/99 382 383 - -------------------------------------------------------------------------------- Face Amount (000) Value (000) - -------------------------------------------------------------------------------- Finance--continued Wachovia 7.000%, 12/15/99 $ 2,443 $ 2,468 World Bank 8.375%, 10/01/99 200 202 -------- 638,537 -------- Industrial (1.5%) Anheuser Busch, MTN 7.850%, 12/01/99 1,300 1,318 AT&T 8.250%, 01/11/00 2,000 2,036 Dupont (EI) de Nemours, MTN 7.500%, 06/11/99 115 115 HJ Heinz 6.750%, 10/15/99 200 201 JC Penney 6.875%, 06/15/99 500 500 KFW International, MTN 7.000%, 06/15/99 100 100 Philip Morris 6.150%, 09/16/99 11,900 11,973 9.250%, 02/15/00 900 924 Unilever NV, MTN 8.000%, 12/08/99 110 111 Wal-Mart Stores 6.125%, 10/01/99 150 150 5.650%, 02/01/00 8,000 8,027 Walt Disney, MTN 6.250%, 06/21/99 2,734 2,736 -------- 28,191 -------- Utilities (0.4%) BellSouth 6.500%, 02/01/00 500 504 Chesapeake and Potomac Telephone 5.875%, 09/15/99 250 251 Duke Power, MTN 5.780%, 07/08/99 2,000 2,002 4 - -------------------------------------------------------------------------------- - -------------------------------------------------------------------------------- Face Amount (000) Value (000) - -------------------------------------------------------------------------------- Utilities--continued Michigan Bell Telephone 5.875%, 09/15/99 $ 100 $ 100 Province of Quebec 9.125%, 03/01/00 4,000 4,114 Southern California Edison 8.250%, 02/01/00 650 662 Virginia Electric & Power 8.875%, 06/01/99 450 450 -------- 8,083 -------- Total Corporate Obligations (Cost $674,811) 674,811 -------- Certificates of Deposit (7.4%) Bayerische Hypo-New York 5.270%, 03/03/00 20,000 19,985 Bayerische Landesbank 4.830%, 06/21/99 30,000 30,000 Branch Banking and Trust (B) 5.060%, 06/01/99 20,000 19,996 Canadian Imperial Bank 5.120%, 02/23/00 15,000 14,995 Commerzbank 5.160%, 02/25/00 13,000 12,995 Nationsbank 4.880%, 10/18/99 30,000 30,000 Toronto Dominion Bank 5.270%, 03/03/00 12,500 12,490 -------- Total Certificates of Deposit (Cost $140,461) 140,461 -------- Asset-Backed Securities (2.3%) American Express Master Trust, Ser 1992-2 CI A 6.600%, 05/15/00 500 501 Americredit Auto Receivables Trust, Ser 1998-B Cl A1 5.199%, 11/12/99 2,561 2,561 - -------------------------------------------------------------------------------- Face Amount (000) Value (000) - -------------------------------------------------------------------------------- Asset-Backed Securities--continued Americredit Auto Receivables Trust, Ser 1999-A Cl A1 4.980%, 03/12/00 $ 3,518 $ 3,519 Americredit Auto Receivables Trust, Ser 1999-B Cl A1 4.917%, 06/12/00 7,000 7,000 Arcadia Auto Receivables Trust, Ser 1999-A Cl A1 4.960%, 03/15/00 3,588 3,589 Case Equipment Loan Trust, Ser 1998-C Cl A1 5.420%, 12/15/99 967 967 Honda Auto Receivables Owner Trust, Ser 1999-1 Cl A1 4.974%, 02/15/00 3,547 3,547 Household Auto Revolving Trust, Ser 1998-1 Cl A1 5.330%, 12/17/99 2,634 2,634 Key Auto Finance Trust, Ser 1999-1 Cl A1 4.960%, 04/15/00 3,344 3,345 Mitsubishi Motor Credit of America Auto Trust, Ser 1999-1 Cl A1 5.066%, 01/15/00 3,016 3,016 Onyx Acceptance Auto Trust, Ser 1999-B Cl A1 4.930%, 05/15/00 9,000 9,000 Union Acceptance, Ser 1999-A Cl A1 4.980%, 03/08/00 2,999 3,000 -------- Total Asset-Backed Securities (Cost $42,679) 42,679 -------- 5 STATEMENT OF NET ASSETS - -------------------------------------------------------------------------------- STI CLASSIC FUNDS May 31, 1999 Classic Institutional Cash Management Money Market Fund--concluded - -------------------------------------------------------------------------------- Face Amount (000) Value (000) - -------------------------------------------------------------------------------- Taxable Municipal Bond (1.1%) Missouri State, Higher Education Loan Authority, Student Loan Revenue, Ser F, Cl A1 4.940%, 06/02/99 $ 20,150 $ 20,150 ---------- Total Taxable Municipal Bond (Cost $20,150) 20,150 ---------- Bank Note (0.3%) American Express Centurion (B) 4.841%, 08/09/99 5,000 5,000 ---------- Total Bank Note (Cost $5,000) 5,000 ---------- U.S. Government Agency Obligations (2.3%) FHLB 5.945%, 07/30/99 200 200 FHLMC 4.935%, 06/04/99 10,000 9,996 FNMA 4.680%, 06/10/99 20,000 19,977 8.700%, 06/10/99 370 370 8.450%, 07/12/99 370 371 SLMA (B) 5.271%, 06/01/99 750 750 4.920%, 08/02/99 12,000 11,994 SLMA, MTN 5.630%, 06/02/99 290 290 ---------- Total U.S. Government Agency Obligations (Cost $43,948) 43,948 ---------- Repurchase Agreements (26.6%) Barclays 4.83%, dated 05/28/99, matures 06/01/99, repurchase price $25,016,418 (collateralized by FHLB and FNMA obligations: total market value $25,503,132) (C) 25,003 25,003 - -------------------------------------------------------------------------------- Face Amount (000) Value (000) - -------------------------------------------------------------------------------- Repurchase Agreements--continued Deutsche Bank 4.83%, dated 05/28/99, matures 06/01/99, repurchase price $166,685,056 (collateralized by FHLMC obligation: total market value $169,927,563) (C) $ 166,596 $ 166,596 Greenwich 4.83%, dated 05/28/99, matures 06/01/99, repurchase price $81,567,767 (collateralized by various GNMA and FHLMC obligations: total market value $83,155,519) (C) 81,524 81,524 Merrill Lynch 4.83%, dated 05/28/99, matures 06/01/99, repurchase price $125,275,405 (collateralized by FHLB, FHLMC, and FNMA obligations: total market value $127,715,110) (C) 125,208 125,208 Morgan Stanley 4.83%, dated 05/28/99, matures 06/01/99, repurchase price $20,010,733 (collateralized by various FNMA obligations: total market value $20,421,366) (C) 20,000 20,000 Salomon Brothers 4.83%, dated 05/28/99, matures 06/01/99, repurchase price $84,894,852 (collateralized by various FHLMC and FNMA obligations: total market value $86,683,968) (C) 84,849 84,849 ---------- Total Repurchase Agreements (Cost $503,180) 503,180 ---------- Total Investments (107.9%) (Cost $2,037,555) $2,037,555 ---------- 6 - -------------------------------------------------------------------------------- Value (000) - -------------------------------------------------------------------------------- Other Assets and Liabilities (-7.9%) Securities Purchased Payable $ (154,997) Other Assets and Liabilities, Net 5,925 ----------- Total Other Assets and Liabilities (149,072) ----------- Net Assets: Fund shares of the Institutional Class (unlimited authorization -- no par value) based on 1,888,474,236 outstanding shares of beneficial interest $ 1,888,474 Overdistributed net investment income (2) Accumulated net realized gain on investments 11 ----------- Total Net Assets 100.0% $ 1,888,483 =========== Net Asset Value, Offering and Redemption Price Per Share -- Institutional Shares $ 1.00 =========== The accompanying notes are an integral part of the financial statements. For descriptions of abbreviations, please see page 11. 7 STATEMENT OF NET ASSETS - -------------------------------------------------------------------------------- STI CLASSIC FUNDS May 31, 1999 Classic Institutional U.S. Government Securities Money Market Fund - -------------------------------------------------------------------------------- Face Amount (000) Value (000) - -------------------------------------------------------------------------------- U.S. Agency Mortgage Backed Obligations (75.2%) FHLB 5.630%, 06/15/99 $ 20,000 $ 20,000 5.980%, 06/15/99 10,000 9,981 4.966%, 02/25/00 30,000 29,982 5.160%, 03/08/00 30,000 29,989 5.125%, 05/19/00 20,000 19,985 FHLB (B) 5.026%, 06/02/99 35,000 35,000 5.170%, 06/02/00 30,000 30,000 FHLMCDN 4.935%, 06/04/99 35,000 34,986 4.842%, 08/13/99 25,000 24,762 FMCDN 4.868%, 09/10/99 30,000 29,604 FNMA 5.540%, 07/16/99 20,000 19,998 FNMA (B) 4.774%, 08/05/99 25,000 24,992 FNMA, MTN 4.970%, 04/12/00 20,000 19,991 5.120%, 05/26/00 10,000 9,987 FNMA, MTN (B) 4.991%, 06/01/99 25,500 25,496 FNMADN 4.680%, 06/10/99 15,000 14,982 4.920%, 06/11/99 10,000 9,987 4.920%, 07/02/99 10,000 9,959 4.760%, 07/20/99 30,000 29,807 4.867%, 10/15/99 15,000 14,734 SLMA (B) 4.841%, 06/01/99 20,000 19,999 --------- Total U.S. Agency Mortgage Backed Obligations (Cost $464,221) 464,221 --------- Repurchase Agreements (24.6%) ABN-AMRO 4.83%, dated 05/28/99, matures 06/01/99, repurchase price $50,493,447 (collateralized by various GNMA obligations: total market value $51,475,692) (C) 50,466 50,466 - -------------------------------------------------------------------------------- Face Amount (000) Value (000) - -------------------------------------------------------------------------------- Repurchase Agreements--continued Deutsche Bank 4.83%, dated 05/28/99, matures 06/01/99, repurchase price $13,349,714 (collateralized by FHLMC obligation: total market value $13,609,303) (C) $ 13,343 $ 13,343 Greenwich 4.83%, dated 05/28/99, matures 06/01/99, repurchase price $73,986,034 (collateralized by various FNMA obligations: total market value $75,425,724) (C) 73,946 73,946 J.P. Morgan 4.83%, dated 05/28/99, matures 06/01/99, repurchase price $14,106,190 (collateralized by various GNMA obligations: total market value $14,380,596) (C) 14,099 14,099 --------- Total Repurchase Agreements (Cost $151,854) 151,854 --------- Total Investments (99.8% ) (Cost $616,075) 616,075 --------- Other Assets and Liabilities, Net (0.2%) 1,014 --------- Net Assets: Fund Shares of the Institutional Class (unlimited authorization -- no par value) based on 617,114,635 outstanding shares of beneficial interest 617,114 Accumulated net realized loss on investments (25) --------- Total Net Assets 100.0% $ 617,089 ========= Net Asset Value, Offering and Redemption Price Per Share -- Institutional Shares $ 1.00 ========= The accompanying notes are an integral part of the financial statements. For descriptions of abbreviations, please see page 11. 8 - -------------------------------------------------------------------------------- Classic Institutional U.S. Treasury Securities Money Market Fund - -------------------------------------------------------------------------------- Face Amount (000) Value (000) - -------------------------------------------------------------------------------- U.S. Treasury Obligations (23.4%) U.S. Treasury Bill 4.700%, 09/16/99 $ 45,000 $ 44,391 U.S. Treasury Note 5.500%, 02/29/00 22,000 22,103 -------- Total U.S. Treasury Obligations (Cost $66,494) 66,494 -------- Repurchase Agreements (76.8%) ABN-AMRO 4.76%, dated 05/28/99, matures 06/01/99, repurchase price $12,506,611 (collateralized by U.S. Treasury Note: total market value $12,750,347) (C) 12,500 12,500 Barclays 4.76%, dated 05/28/99, matures 06/01/99, repurchase price $11,683,126 (collateralized by U.S. Treasury Note: total market value $11,911,303) (C) 11,677 11,677 Credit Suisse First Boston 4.73%, dated 05/28/99, matures 06/01/99, repurchase price $11,005,781 (collateralized by U.S. Treasury Bill: total market value $11,786,000) (C) 11,000 11,000 Duetsche Bank 4.76%, dated 05/28/99, matures 06/01/99, repurchase price $63,908,474 (collateralized by various U.S. Treasury Notes and U.S. Treasury Bonds: total market value $65,152,408) (C) 63,875 63,875 - -------------------------------------------------------------------------------- Face Amount (000) Value (000) - -------------------------------------------------------------------------------- Repurchase Agreements--continued Greenwich 4.76%, dated 05/28/99, matures 06/01/99, repurchase price $11,871,391 (collateralized by U.S. Treasury Bond: total market value $12,105,827) (C) $ 11,865 $ 11,865 J.P. Morgan 4.76%, dated 05/28/99, matures 06/01/99, repurchase price $12,006,347 (collateralized by U.S. Treasury Note: total market value $12,240,216) (C) 12,000 12,000 Merrill Lynch 4.76%, dated 05/28/99, matures 06/01/99, repurchase price $10,912,810 (collateralized by U.S. Treasury STRIPS: total market value $11,125,364) (C) 10,907 10,907 Morgan Stanley 4.76%, dated 05/28/99, matures 06/01/99, repurchase price $11,977,273 (collateralized by U.S. Treasury Bond: total market value $12,280,432) (C) 11,971 11,971 SBC Warburg 4.76%, dated 05/28/99, matures 06/01/99, repurchase price $60,074,906 (collateralized by U.S. Treasury Bond: total market value $61,245,063) (C) 60,043 60,043 Salomon Brothers 4.76%, dated 05/28/99, matures 06/01/99, repurchase price $11,831,033 (collateralized by U.S. Treasury Bond: total market value $12,069,022) (C) 11,825 11,825 -------- Total Repurchase Agreements (Cost $217,663) 217,663 -------- 9 STATEMENT OF NET ASSETS - -------------------------------------------------------------------------------- STI CLASSIC FUNDS May 31, 1999 Classic Institutional U.S. Treasury Securities Money Market Fund--concluded - -------------------------------------------------------------------------------- Value (000) - -------------------------------------------------------------------------------- Total Investments (100.2%) (Cost $284,157) $ 284,157 --------- Other Assets and Liabilities, Net (-0.2%) (632) --------- Net Assets: Fund shares of the Institutional Class (unlimited authorization -- no par value) based on 283,494,939 outstanding shares of beneficial interest 283,495 Undistributed net investment income 4 Accumulated net realized gain on investments 26 --------- Total Net Assets 100.0% $ 283,525 ========= Net Asset Value, Offering and Redemption Price Per Share -- Institutional Shares $ 1.00 ========= The accompanying notes are an integral part of the financial statements. For descriptions of abbreviations, please see page 11. 10 - -------------------------------------------------------------------------------- Key to Abbreviations used in the Statement of Net Assets/Schedule of Investments Cl Class FHLB Federal Home Loan Bank FHLMC Federal Home Loan Mortgage Corporation FHLMCDN Federal Home Loan Mortgage Corporation Discount Note FMCDN Federal Mortgage Corporation Discount Note FNMA Federal National Mortgage Association FNMADN Federal National Mortgage Association Discount Note MTN Medium Term Note NA North America Ser Series SLMA Student Loan Marketing Association STRIPS Separately Traded Registered Interest and Principal Security (A) Private Placement Security (B) Adjustable Rate Security. The rate reported on the Statement of Net Assets is the rate in effect on May 31, 1999. The date shown is the next scheduled reset date. (C) Tri-Party Repurchase Agreement The accompanying notes are an integral part of the financial statements. 11 STATEMENT OF OPERATIONS (000) - -------------------------------------------------------------------------------- STI CLASSIC FUNDS For The Periods Ended May 31, and January 31, 1999
Classic Classic Classic Institutional Institutional Institutional Cash Management U.S. Government U.S. Treasury Money Market Securities Money Securities Money Fund Market Fund Market Fund ----------------------- ------------------------ ----------- 02/01/99- 02/01/98- 02/01/99- 02/01/98- 06/01/98- 05/31/99 01/31/99 05/31/99 01/31/99 05/31/99 -------- -------- -------- -------- --------- Income: Interest Income $ 15,955 $ 44,755 $ 10,807 $ 35,773 $ 11,296 -------- -------- -------- -------- -------- Expenses: Investment Advisory Fees ....................... 635 646 432 1,323 449 Investment Advisory Fees Waived/Reimbursed...... (238) (268) (166) (629) (449) Contribution From Advisor ...................... -- -- -- -- (112) Administrator Fees ............................. 246 1,616 168 529 175 Administrator Fees Waived ...................... (96) (689) (69) (220) (45) Transfer Agent Fees ............................ 75 240 62 198 134 Printing Fees .................................. 10 27 12 32 66 Custody Fees ................................... 43 290 81 265 54 Professional Fees .............................. 19 22 15 27 52 Trustee Fees ................................... -- 1 2 1 11 Registration Fees .............................. 79 1 1 1 74 Insurance and Other Fees ....................... 5 5 4 7 43 Amortization of Deferred Organizational Costs .. -- 3 1 4 -- -------- -------- -------- -------- -------- Total Expenses ................................. 778 1,894 543 1,538 452 -------- -------- -------- -------- -------- Net Investment Income .......................... 15,177 42,861 10,264 34,235 10,844 -------- -------- -------- -------- -------- Net Realized Gain on Securities Sold ........... 1 -- -- -- 25 -------- -------- -------- -------- -------- Increase in Net Assets Resulting from Operations ................................... $ 15,178 $ 42,861 $ 10,264 $ 34,235 $ 10,869 ======== ======== ======== ======== ========
Amounts designated as "--" are either $0 or round to $0. The accompanying notes are an integral part of the financial statements. 12 STATEMENT OF CHANGES IN NET ASSETS (000) - -------------------------------------------------------------------------------- STI CLASSIC FUNDS For The Periods Ended May 31, and January 31,
Classic Classic Institutional Institutional Cash Management U.S. Government Money Market Securities Money Fund Market Fund --------------------------------------- --------------------------------------- 02/01/99- 02/01/98- 02/01/97- 02/01/99- 02/01/98- 02/01/97- 05/31/99 01/31/99 01/31/98 05/31/99 01/31/99 01/31/98 ----------- ----------- ----------- ----------- ----------- ----------- Operations: Net Investment Income ...... $ 15,177 $ 42,861 $ 31,705 $ 10,264 $ 34,235 $ 37,262 Net Realized Gain (Loss) on Investments ......... 1 -- (3) -- -- 3 ----------- ----------- ----------- ----------- ----------- ----------- Increase in Net Assets Resulting from Operations ............. 15,178 42,861 31,702 10,264 34,235 37,265 ----------- ----------- ----------- ----------- ----------- ----------- Distributions to Shareholders: Net Investment Income .... (15,172) (42,874) (31,704) (10,249) (34,250) (37,262) ----------- ----------- ----------- ----------- ----------- ----------- Total Distributions ...... (15,172) (42,874) (31,704) (10,249) (34,250) (37,262) ----------- ----------- ----------- ----------- ----------- ----------- Share Transactions: Proceeds from Shares Issued .......... 2,243,802 7,764,540 6,369,124 1,958,641 6,897,369 7,090,197 Shares Issued in Connection with Crestar Arbor Merger.. 1,072,229 -- -- -- -- -- Reinvestments of Cash Distributions ..... 7,086 10,074 5,066 3,113 13,467 9,939 Cost of Shares Redeemed .. (2,319,130) (7,630,948) (6,110,786) (2,032,711) (7,012,200) (6,897,460) ----------- ----------- ----------- ----------- ----------- ----------- Increase (Decrease) in Net Assets from Share Transactions .... 1,003,987 143,666 263,404 (70,957) (101,364) 202,676 ----------- ----------- ----------- ----------- ----------- ----------- Total Increase (Decrease) in Net Assets .......... 1,003,993 143,653 263,402 (70,942) (101,379) 202,679 ----------- ----------- ----------- ----------- ----------- ----------- Net Assets: Beginning of Period ...... 884,490 740,837 477,435 688,031 789,410 586,731 ----------- ----------- ----------- ----------- ----------- ----------- End of Period .............. $ 1,888,483 $ 884,490 $ 740,837 $ 617,089 $ 688,031 $ 789,410 =========== =========== =========== =========== =========== =========== Shares Issued and Redeemed: Shares Issued ............ 2,243,802 7,764,540 6,369,124 1,958,641 6,897,369 7,090,197 Shares Issued in Connection with Crestar Arbor Merger ... 1,072,211 -- -- -- -- -- Shares Issued in Lieu of Cash Distributions .. 7,086 10,074 5,066 3,113 13,467 9,939 Shares Redeemed .......... (2,319,131) (7,630,948) (6,110,786) (2,032,711) (7,012,200) (6,897,460) ----------- ----------- ----------- ----------- ----------- ----------- Net Share Transactions ....... 1,003,968 143,666 263,404 (70,957) (101,364) 202,676 =========== =========== =========== =========== =========== =========== Classic Institutional U.S. Treasury Securities Money Market Fund ------------------------ 06/01/98- 06/01/97- 05/31/99 05/31/98 ----------- --------- Operations: Net Investment Income ...... $ 10,844 $ 5,596 Net Realized Gain (Loss) on Investments ......... 25 4 ----------- --------- Increase in Net Assets Resulting from Operations ............. 10,869 5,600 ----------- --------- Distributions to Shareholders: Net Investment Income .... (10,842) (5,596) ----------- --------- Total Distributions ...... (10,842) (5,596) ----------- --------- Share Transactions: Proceeds from Shares Issued .......... 1,267,762 991,131 Shares Issued in Connection with Crestar Arbor Merger.. -- -- Reinvestments of Cash Distributions ..... 7,876 4,231 Cost of Shares Redeemed .. (1,132,474) (875,270) ----------- --------- Increase (Decrease) in Net Assets from Share Transactions .... 143,164 120,092 ----------- --------- Total Increase (Decrease) in Net Assets .......... 143,191 120,096 ----------- --------- Net Assets: Beginning of Period ...... 140,334 20,238 ----------- --------- End of Period .............. $ 283,525 $ 140,334 =========== ========= Shares Issued and Redeemed: Shares Issued ............ 1,267,762 991,131 Shares Issued in Connection with Crestar Arbor Merger ... -- -- Shares Issued in Lieu of Cash Distributions .. 7,876 4,231 Shares Redeemed .......... (1,132,474) (875,270) ----------- --------- Net Share Transactions ....... 143,164 120,092 =========== =========
Amounts designated as "--" are either $0 or round to $0. The accompanying notes are an integral part of the financial statements. 13 FINANCIAL HIGHLIGHTS - -------------------------------------------------------------------------------- STI CLASSIC FUNDS For the Periods Ended May 31, and January 31, For a Share Outstanding Throughout the Period
Net Net Asset Net Asset Value Investment Distributions from Value End Total Beginning of Period Income Net Investment Income of Period Return+ ------------------- ---------- ---------------------- ------------ -------- Classic Institutional Cash Management Money Market Fund (A) Institutional Shares 1999* $1.00 0.02 (0.02) $1.00 1.58% For the years ended January 31: 1999 1.00 0.05 (0.05) 1.00 5.46 1998 1.00 0.06 (0.06) 1.00 5.66 1997 1.00 0.05 (0.05) 1.00 5.45 1996(B) 1.00 0.02 (0.02) 1.00 1.42 Classic Institutional U.S. Government Securities Money Market Fund (C) Institutional Shares 1999* $1.00 0.02 (0.02) $1.00 1.56% For the years ended January 31: 1999 1.00 0.05 (0.05) 1.00 5.30 1998 1.00 0.05 (0.05) 1.00 5.52 1997 1.00 0.05 (0.05) 1.00 5.29 1996 1.00 0.06 (0.06) 1.00 5.88 1995(D) 1.00 0.03 (0.03) 1.00 4.98 Classic Institutional U.S. Treasury Securities Money Market Fund Institutional Shares 1999 $1.00 0.05 (0.05) $1.00 4.97% 1998 1.00 0.05 (0.05) 1.00 5.50 1997(E) 1.00 0.02 (0.02) 1.00 2.46 Ratio of Ratio of Net Investment Ratio of Expenses to Income to Net Assets Ratio of Net Investment Average Net Assets Average Net Assets End of Expenses to Income to (Excluding Waivers (Excluding Waivers Period (000) Average Net Assets Average Net Assets and Reimbursements) and Reimbursements) - ------------ ------------------ ------------------ ------------------ ------------------ $1,888,483 0.25% 4.79% 0.35% 4.69% 884,490 0.23 5.31 0.35 5.19 740,837 0.20 5.52 0.36 5.36 477,435 0.20 5.33 0.38 5.15 382,632 0.20 5.61 0.40 5.41 $ 617,089 0.25% 4.73% 0.36% 4.62% 688,031 0.23 5.18 0.36 5.05 789,410 0.20 5.39 0.37 5.22 586,731 0.20 5.17 0.37 5.00 514,870 0.20 5.72 0.37 5.55 579,422 0.20 4.98 0.38 4.80 $ 283,525 0.20% 4.83% 0.47% 4.56% 140,334 0.18 5.34 0.38 5.14 20,238 0.09 5.27 0.51 4.85
(A) On May 17, 1999, the Arbor Prime Obligations Fund exchanged all of its assets and certain liabilities for shares of the Classic Institutional Cash Management Money Market Fund. The Arbor Prime Obligations 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 17, 1999 have been carried forward in these financial highlights. (B) Commenced operations on October 25, 1995. All ratios for the period have been annualized. (C) On May 24, 1999, the Arbor U.S. Government Securities Money Fund exchanged all of its assets and certain liabilities for shares of the Classic Institutional U.S. Government Securities Money Market Fund. The Arbor U.S. Government Securities Money 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. (D) Commenced operations on August 1, 1994. All ratios for the period have been annualized. (E) Commenced operations on December 12, 1996. All ratios for the period have been annualized. + Returns are for the period indicated and have not been annualized. * For the period February 1, 1999 to May 31, 1999. All ratios for the period have been annualized. The accompanying notes are an integral part of the financial statements. 14 & 15 NOTES TO FINANCIAL STATEMENTS - -------------------------------------------------------------------------------- STI CLASSIC 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 the 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" or the "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 Institutional Money Market Funds. The financial statements of the Equity Funds, the Fixed Income Funds and the Retail Money Market Funds are not presented herein, but are presented separately. On February 17, 1999 and February 22, 1999, respectively, the Board of Trustees of the STI Classic Funds and Board of Trustees of the Arbor Funds approved an Agreement and Plan of Reorganization (the "Reorganization Agreement") providing for the transfer of all assets and liabilities of certain of the Arbor Funds in exchange for the issuance of shares in the Funds in a tax-free reorganization (see Note 7). 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 7, the STI Classic Funds acquired certain Arbor Funds in a tax-free business combination. While each Fund now exists as a STI Classic Fund, one of the surviving funds for accounting purposes is an Arbor Fund. 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 Funds are stated at amortized cost, which approximates market value. 16 - -------------------------------------------------------------------------------- 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). Interest income is recognized on an accrual basis. Costs used in determining net realized gains and losses on the sales of investment securities are those of the specific securities sold adjusted for the accretion and amortization of purchase discounts and premiums during the respective holding period. Purchase discounts and premiums on securities held by the Funds are accreted and amortized ratably to maturity and are included in interest income. Repurchase Agreements -- Securities pledged as collateral for repurchase agreements are held by the custodian bank until the respective agreements mature. Provisions of the repurchase agreements ensure that the market value of the collateral, including accrued interest thereon, is sufficient in the event of default of the counterparty. If the counterparty defaults and the value of the collateral declines or if the counterparty enters into an insolvency proceeding, realization of the collateral by the Funds may be delayed or limited. 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. Other -- Expenses that are directly related to a specific Fund are charged to that Fund. Class specific expenses are borne by that class. Other operating expenses of the Trust are pro-rated to the Funds on the basis of relative net assets. Fund expenses are pro-rated to the respective classes on the basis of relative net assets. Distributions from net investment income of each of the Funds are declared on each business day and paid to shareholders on a monthly basis. 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 Institutional U.S. Treasury Securities Money Market Fund has reclassified $2,000 from Undistributed Net Investment Income to Accumulated Net Realized Gain. This reclassification is attributable to the classification of short-term capital gains and ordinary income treatment for tax purposes. This reclassification has no effect on net assets or net asset value per share. 17 NOTES TO FINANCIAL STATEMENTS (concluded) - -------------------------------------------------------------------------------- STI CLASSIC FUNDS May 31, 1999 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 and Transfer Agency Servicing Agreements: The Trust and the Administrator are parties to an Administration Agreement dated May 29, 1995, as amended November 19, 1997, under which the Administrator provides administrative services for an annual fee (expressed as a percentage of the combined average daily net assets of the Trust and STI Classic Variable Trust) of: .12% up to $1 billion, .09% on the next $4 billion, .07% on the next $3 billion, .065% on the next $2 billion and .06% for over $10 billion. Prior to May 24, 1999, and May 17, 1999, administrative and accounting services were provided to the Arbor U.S. Government Securities Money Fund and Prime Obligations Fund, respectively, by SEI Investments Mutual Funds Services who was entitled to receive a fee at an annual rate of .08% of the average daily net assets of these funds. A portion of these fees were voluntarily waived. 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. 5. Investment Advisory and Custodian Agreements: The Trust and Trusco Capital Management, Inc. (the "Investment Advisor") have entered into an advisory agreement dated July 15, 1993. Under terms of the respective agreements, the Funds are charged the following annual fees based upon average daily net assets: Maximum Institutional Annual Share Advisory Maximum Fee Expense ------------ ------------ Classic Institutional Cash Management Money Market Fund .20% .25% Classic Institutional U.S. Government Securities Money Market Fund .20% .25% Classic Institutional U.S. Treasury Money Market Fund .20% .25% 18 - -------------------------------------------------------------------------------- The Investment Advisor and the Administrator 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, and May 17, 1999, Crestar Asset Management Company ("CAMCO") provided Investment Advisory services to certain Arbor Funds. CAMCO was paid for advisory services to each Fund at an annual rate of .10% and .11% of the average daily net assets for U.S. Government Securities Money and Prime Obligations Funds, respectively. SunTrust Bank, Atlanta, formerly Trust Company Bank, acts as custodian for the Funds. Fees of the Custodian are paid on the basis of the net assets of the Funds. The Custodian plays no role in determining the investment policies of the Trust or which securities are to be purchased or sold in the Funds. 6. Concentration of Credit Risk: The Classic Institutional Cash Management Money Market Fund invests in high quality money market instruments issued by corporations and the U.S. Government and rated by one or more nationally recognized statistical rating organizations, or, if not rated determined by the Advisor to be of comparable quality. The Classic Institutional U.S. Government Securities Fund invests in U.S. Treasury obligations, U.S. Government subsidiary corporation securities which are backed by the full faith and credit of the U.S. government and repurchase agreements with approved dealers collateralized by U.S. Treasury securities and U.S. Government subsidiary corporation securities. The Classic Institutional U.S. Treasury Securities Money Market Fund invests in U.S. Treasury Obligations, which are backed by the full faith and credit of the U.S. Government and repurchase agreements with approved dealers collateralized by U.S. Treasury securities. 7. Arbor Funds Merger: The Board of Directors and shareholders of certain of the Arbor Funds approved a reorganization of certain of the Arbor Funds into the STI Classic Funds which took place at the close of business on May 17, 1999 for the Prime Obligations Fund and May 24, 1999 for the U.S. Government Securities Money Fund. 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 Shares Issued Net Assets NAV On Merger in Business after Per Arbor Fund Date STI Classic Fund Combination Combination Share - -------------------------- ----------- ---------------- ------------- -------------- ----- U.S. Government Securities 684,672,707 Classic Institutional U.S. Government 684,672,707 684,647,218 $1.00 Money Fund (1) Securities Money Market Fund Prime Obligation Fund (1) 711,747,295 Classic Institutional Cash Management 711,747,295 1,783,974,148 1.00 Money Market Fund
(1) Represents the accounting survivor in this business combination. 19 REPORT OF INDEPENDENT PUBLIC ACCOUNTANTS - -------------------------------------------------------------------------------- STI CLASSIC 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 Classic Institutional Cash Management Money Market, Classic Institutional U.S. Government Securities Money Market, and Classic Institutional U.S. Treasury Securities Money Market 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. 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 January 31, 1999, statements of changes for the years ended January 31, 1999 and January 31, 1998, and financial highlights for the periods presented prior to May 31, 1999, for the Classic Institutional Cash Management Money Market and Classic Institutional U.S. Government Securities Money Market Funds were audited by other auditors whose report dated March 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 referred to above present fairly, in all material respects, the financial position of the Classic Institutional Cash Management Money Market, Classic Institutional U.S. Government Securities Money Market, and Classic Institutional U.S. Treasury Securities Money Market Funds, 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 20 NOTICE TO SHAREHOLDERS - -------------------------------------------------------------------------------- STI CLASSIC 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 Mid Term (20% Rate) (28% Rate) Ordinary Capital Gains Capital Gains Income Tax-Exempt Total Qualifying Fund Distributions Distributions Distributions Interest Distributions Dividends (1) - ------------------------------------- ------------- -------------- ------------- ------------ -------------- ------------- Classic Institutional Cash Management Money Market Fund 0.00% 0.00% 100.00% 0.00% 100.00% 0.00% Classic Institutional U.S. Government Securities Money Market Fund 0.00% 0.00% 100.00% 0.00% 100.00% 0.00% Classic Institutional U.S. Treasury Securities Money Market Fund 0.00% 0.00% 100.00% 0.00% 100.00% 0.00%
(1) Qualifying dividends represent dividends which qualify for the corporate dividends received deduction and is reflected as a percentage of "OrdinaryIncome Distribution". 21 NOTES NOTES NOTES INVESTMENT ADVISOR Trusco Capital Management, Inc. STI Classic Funds are not deposits, are not insured or guaranteed by the FDIC or any other government agency, and are not endorsed by and do not constitute obligations of SunTrust Banks, Inc. or any other of its affiliates. Investment in the Funds involves risk, including the possible loss of principal. There is no guarantee that any STI Classic Fund will achieve its investment objective. The STI Classic Funds are advised by 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-----