-----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, OQrVbcN78MQ7wECzW+FlVZYv252g+X5/4U6AV9gKdKOWC8EyUmiN7tBjEHEmHhoI BY+Ffkq4eqiMmiNaXC0mew== 0000935069-99-000144.txt : 19990811 0000935069-99-000144.hdr.sgml : 19990811 ACCESSION NUMBER: 0000935069-99-000144 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: 99676814 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 - -------------------------------------------------------------------------------- Prime Quality Money Market Fund Tax-Exempt Money Market Fund Tax-Free Money Market Fund U.S. Government Securities Money Market Fund U.S. Treasury Money Market Fund May 31, 1999 [logo omitted] STI Classic Prime Quality Money Market Fund - -------------------------------------------------------------------------------- The investment objective of the STI Classic Prime Quality Money Market Fund (the "Fund") is to provide as high a level of current income as is consistent with the preservation of capital and liquidity by investing exclusively in high quality money market instruments. The investment discipline, which we use in managing the Fund, emphasizes adding incremental value through yield curve, sector and credit analysis. Investments are made in those sectors, credits, and segments of the yield curve within the universe of money market eligible securities, which offer the most attractive risk/reward trade-off and current yield. The maturity structure and average maturity of the Fund are actively managed to maximize the yield of the Fund based on the current market rates and conditions and our market outlook. The Federal reserve lowered the Federal Funds Rate three times between September and November of last year. The three quarter of a percent drop in the Federal Funds Rate led to a similar decrease in the yields for short-term money market securities. The Fund maintained an extended average maturity during most of the fiscal year ending May 31, 1999. This strategy along with good security selection allowed the fund to maximize its yield during a period of declining rates and provide a very competitive return as compared to its peer money market funds. /s/ David S. Yealy -------------- David S. Yealy Vice President STI Classic Tax-Exempt Money Market Fund ---------------------------------------- The STI Classic Tax-Exempt Money Market Fund (the "Fund") seeks to provide as high a level of current interest income exempt from regular federal income tax as is consistent with preserving capital and liquidity. The Fund invests in high quality, U.S. dollar-denominated municipal securities of issuers located in all fifty states, the District of Columbia, and Puerto Rico. During most of this period, the Fund maintained a longer average maturity. We bought longer maturities when market conditions were advantageous in order to maximize the yield of the Fund. /s/ Mary F. Cernilli ---------------- Mary F. Cernilli Vice President 1 STI Classic Tax-Free Money Market Fund -------------------------------------- The STI Classic Tax-Free Money Market Fund (the "Fund") is a new member of the STI Classic mutual fund family, as the successor Fund to the former CrestFunds Tax-Free Money Market Fund. CrestFunds merged into STI on May 24, 1999. The Fund invests substantially all of its assets in money market instruments issued by states and municipalities that are exempt from federal income taxes. At least 25% of the Fund's assets will be invested in money market instruments issued by tax exempt entities located in Virginia. High quality and high liquidity are the Fund's primary focus. The past year was volatile for the economy and the money markets, as policy-makers and investors successfully navigated potential significant pitfalls. Tax-exempt money market yields ended the fiscal year somewhat lower than at the beginning of the fiscal year, but rates were far from stable. The Fund performed well in this changing environment, producing a 2.74% (Trust Shares) return for the twelve months ended May 31, 1999. Reviewing the past twelve months, the second half of 1998 was strongly influenced by continuing reverberations of the 1997 Asian financial crisis. Russia and Latin America fell victim to backlash, sending investors to the safety of U.S. Treasury securities. The Federal Reserve cut interest rates three times in an effort to restore liquidity to financial markets. Yields on one year tax exempt securities fell from 3.7% to 3.0%. The drop in yields occurred within a healthy domestic economy highlighted by low unemployment and high consumer confidence. Municipalities generally enjoyed strengthening credit ratings coming from fiscal surpluses, and many embarked on a number of spending initiatives. This provided opportunities for increased diversification and yield for the Fund. 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. Bond investors, concerned about a possible pick up in future inflation, began to worry that the Federal Reserve might raise interest rates. Interest rates rose, with one year tax exempt yields rising to 3.3% by the end of the fiscal year. The outlook for the U.S. and world economies remains favorable based on current reports, suggesting that credit quality can remain high over the near term. Tight labor markets remain a concern for the inflation-wary Fed, and interest rates could face additional upward pressure over the near term. However, the longer-term outlook for inflation is favorable in our view, and interest rates may head lower following some near-term tightness. The STI Classic Tax-Free Money Market Fund will continue to emphasize high-quality, current, tax free income for our shareholders. /s/ Robert S. Bowman --------------------- Robert S. Bowman, CFA Vice President 2 STI Classic U.S. Government Securities Money Market Fund -------------------------------------------------------- The investment objective of the STI Classic U.S. Government Securities Money Market Fund (the "Fund") is to provide as high a level of current income as is consistent with the preservation of capital and liquidity by investing exclusively in money market eligible securities. Eligible securities include U.S. Treasury securities, U.S. Government Subsidiary Corporation securities that are backed by the full faith and credit of the U.S. Government, and repurchase agreements ("repos") collateralized by U.S. Treasury obligations and U.S. Government Subsidiary Corporation securities. The investment discipline, which is used in managing the Fund, emphasizes adding incremental value through yield curve analysis. The maturity structure and average maturity of the Fund are actively managed to maximize the yield of the Fund over time based on the current market rates and conditions and our market outlook. The Federal reserve lowered the Federal Funds Rate three times between September and November of last year. The three quarter of a percent drop in the Federal Funds Rate led to a similar decrease in the yields for short-term money market securities. The Fund was able to provide a competitive return as compared to its peer money market funds during the fiscal year ending May 31, 1999 by purchasing longer-term money market securities from time to time in order to minimize the impact from falling rates. /s/ David S. Yealy -------------- David S. Yealy Vice President 3 STI Classic U.S. Treasury Money Market Fund ------------------------------------------- The STI Classic U.S. Treasury Money Fund (the "Fund") is a new member of the STI Classic mutual fund family, as the successor Fund to the former CrestFunds U.S. Treasury Money Fund. CrestFunds merged into STI on May 24, 1999. The Fund invests solely in short term U.S. Treasury securities and repurchase agreements backed by U.S. Treasury securities. The Fund has a maximum average maturity of 60 days or less, and has received a AAA rating from Standard and Poor's Corporation, a nationally recognized rating agency. The past year was volatile for the economy and the money markets, as policy-makers and investors successfully navigated potential significant pitfalls. Treasury bill yields ended the fiscal year approximately one-half percentage point lower than at the beginning of the fiscal year, but rates were far from stable. The Fund performed well in this changing environment, producing a 4.5% return for the twelve months ended May 31, 1999. This return placed the Fund in the top 36% of similar money market funds according to Lipper Analytical Services. Reviewing the past twelve months, the second half of 1998 was strongly influenced by continuing reverberations of the 1997 Asian financial crisis. Russia and Latin America fell victim to backlash, sending investors to the safety of U.S. Treasury securities. The Federal Reserve cut interest rates three times in an effort to restore liquidity to financial markets. Yields on 3-month Treasury bills fell from 5.1% to 3.6%. The drop in yields occurred within a healthy domestic economy highlighted by low unemployment and high consumer confidence. Sectors benefiting from lower rates such as housing and autos surged. 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. Bond investors, concerned about a possible pick up in future inflation, began to worry that the Federal Reserve might raise interest rates. Interest rates rose, with 3-month Treasury yields rising to 4.6% by the end of the fiscal year. The outlook for the U.S. and world economies remains favorable based on current reports, suggesting that credit quality can remain high over the near term. Tight labor markets remain a concern for the inflation-wary Fed, and interest rates could face additional upward pressure over the near term. However, the longer-term outlook for inflation is favorable in our view, and interest rates may head lower following some near-term tightness. /s/ Robert S. Bowman --------------------- Robert S. Bowman, CFA Vice President 4 STATEMENT OF NET ASSETS - -------------------------------------------------------------------------------- STI CLASSIC FUNDS May 31, 1999 Prime Quality Money Market Fund - -------------------------------------------------------------------------------- Face Amount (000) Value (000) - -------------------------------------------------------------------------------- Commercial Paper (44.7%) Finance (19.3%) ABN-AMRO 4.880%, 10/18/99 $147,000 $144,230 AI Credit 4.900%, 06/01/99 50,000 50,000 Allstate 4.930%, 06/01/99 1,435 1,435 Associates 4.800%, 06/14/99 35,000 34,939 Bank of Montreal 4.810%, 07/19/99 75,000 74,519 BankAmerica 4.830%, 10/27/99 50,000 49,007 Credit Suisse First Boston 4.860%, 07/12/99 1,000 994 Den Norske Bank 4.900%, 07/07/99 800 796 4.860%, 08/10/99 20,000 19,811 Ford Motor Credit 4.750%, 11/03/99 25,000 24,489 General Electric Capital 4.800%, 06/11/99 80,000 79,889 4.800%, 06/14/99 2,000 1,997 4.820%, 07/16/99 3,600 3,578 4.730%, 08/19/99 20,000 19,792 4.740%, 12/01/99 25,000 24,398 General Motors Acceptance 4.670%, 10/20/99 55,000 53,994 Goldman Sachs 4.770%, 09/17/99 25,000 24,642 4.910%, 10/21/99 99,000 97,083 GTE Funding 4.830%, 06/02/99 21,560 21,557 4.800%, 06/03/99 3,200 3,199 J.P. Morgan 4.820%, 07/15/99 2,425 2,411 - -------------------------------------------------------------------------------- Face Amount (000) Value (000) - -------------------------------------------------------------------------------- Marsh & McClennan 4.900%, 06/03/99 $ 50,000 $ 49,986 Merrill Lynch 4.820%, 06/17/99 40,000 39,914 Paccar 4.850%, 06/23/99 325 324 Progress Capital 4.930%, 06/01/99 5,691 5,691 4.810%, 06/02/99 4,812 4,811 Sigma Finance 4.850%, 06/01/99 1,070 1,070 4.900%, 08/10/99 7,273 7,204 Sony Capital 4.930%, 06/03/99 41,025 41,014 Ubs Finance 4.980%, 10/05/99 17,130 16,831 4.890%, 12/13/99 8,815 8,582 4.780%, 12/20/99 25,000 24,329 -------- 932,516 -------- Industrial (24.4%) Albertson's 4.800%, 06/07/99 18,200 18,185 Allied Signal 4.890%, 06/08/99 23,432 23,410 Allstate 4.830%, 07/22/99 25,000 24,829 Arco 4.840%, 06/11/99 20,000 19,973 4.820%, 06/29/99 8,200 8,169 4.810%, 07/21/99 25,000 24,833 AT&T 4.810%, 07/28/99 120,000 119,086 Becton Dickinson 4.870%, 07/19/99 504 501 BP America 4.920%, 06/01/99 53,845 53,845 5 STATEMENT OF NET ASSETS - ------------------------------------------------------------------------------- STI CLASSIC FUNDS May 31, 1999 Prime Quality Money Market Fund--continued - -------------------------------------------------------------------------------- Face Amount (000) Value (000) - -------------------------------------------------------------------------------- Caterpillar 4.810%, 07/13/99 $20,000 $19,888 4.900%, 09/09/99 28,100 27,718 Daimler Chrysler 4.720%, 07/15/99 35,000 34,798 Dupont (EI) de Nemour 4.800%, 11/16/99 25,000 24,440 Eastman Kodak 4.810%, 08/23/99 4,871 4,817 4.840%, 09/13/99 27,600 27,214 4.840%, 09/23/99 53,300 52,483 Edison International 4.820%, 08/02/99 50,000 49,585 4.850%, 08/16/99 85,000 84,130 Exxon Asset 4.910%, 06/02/99 80,000 79,989 Exxon Imperial 4.890%, 06/03/99 20,000 19,995 4.890%, 06/04/99 50,000 49,980 4.880%, 06/11/99 6,500 6,491 Ford Motor 4.950%, 06/03/99 3,400 3,399 4.850%, 07/26/99 1,525 1,514 4.850%, 07/27/99 2,800 2,779 General Electric 4.820%, 06/04/99 2,800 2,799 4.820%, 06/07/99 2,000 1,998 4.820%, 06/10/99 6,300 6,292 4.820%, 06/11/99 1,500 1,498 4.810%, 06/18/99 2,715 2,709 4.850%, 07/06/99 4,500 4,479 4.830%, 07/16/99 3,600 3,578 4.830%, 07/28/99 17,900 17,762 4.890%, 08/13/99 1,000 990 Golden Peanut 4.860%, 09/01/99 5,000 4,938 - -------------------------------------------------------------------------------- Face Amount (000) Value (000) - -------------------------------------------------------------------------------- International Lease 4.900%, 06/01/99 $ 8,474 $ 8,474 J.C. Penney 4.930%, 06/11/99 3,200 3,196 5.040%, 07/29/99 20,000 19,841 New York Times 4.850%, 06/11/99 4,550 4,544 4.850%, 06/25/99 1,000 997 PPG Industries 4.850%, 06/11/99 400 399 Rio Tinto 4.840%, 06/14/99 23,400 23,359 4.850%, 06/16/99 5,919 5,907 4.850%, 06/17/99 11,700 11,675 4.810%, 07/06/99 20,000 19,906 4.810%, 07/16/99 5,700 5,666 4.850%, 08/17/99 38,085 37,690 Sara Lee 4.900%, 06/03/99 2,190 2,189 SmithKline Beecham 4.930%, 06/01/99 2,470 2,470 South Carolina 4.810%, 06/03/99 16,925 16,920 4.830%, 06/11/99 9,642 9,629 4.820%, 06/18/99 5,400 5,388 4.850%, 06/29/99 1,565 1,559 Southern California Edison 4.850%, 07/06/99 10,000 9,953 4.840%, 08/17/99 9,570 9,471 St. Paul 4.900%, 06/01/99 29,640 29,640 4.800%, 06/11/99 10,000 9,987 4.800%, 06/17/99 20,000 19,957 Toys "R" Us 4.820%, 06/01/99 14,273 14,273 6 - -------------------------------------------------------------------------------- - -------------------------------------------------------------------------------- Face Amount (000) Value (000) - -------------------------------------------------------------------------------- Unilever 4.910%, 06/01/99 $ 9,575 $ 9,575 Walt Disney 4.460%, 07/13/99 60,000 59,688 Xerox 4.920%, 06/01/99 3,158 3,158 4.850%, 06/24/99 494 492 ---------- 1,175,097 ---------- Utilities (1.0%) BellSouth 4.930%, 06/04/99 1,130 1,130 Consolidated Natural Gas 4.870%, 06/08/99 3,107 3,104 Georgia Power 4.810%, 07/19/99 39,300 39,048 GTE 4.910%, 06/02/99 3,032 3,032 Southwestern Pub 4.870%, 06/25/99 900 897 ---------- 47,211 ---------- Total Commercial Paper (Cost $2,154,824) 2,154,824 ---------- Corporate Obligations (24.7%) Finance (21.5%) American Express Centurion Bank Note (C) 4.990%, 06/01/99 50,000 50,000 5.060%, 06/01/99 35,000 35,000 American Express Credit 8.500%, 06/15/99 1,500 1,502 American General 8.000%, 02/15/00 5,993 6,112 American General, MTN 6.350%, 10/29/99 5,000 5,026 6.190%, 11/08/99 5,000 5,024 - -------------------------------------------------------------------------------- Face Amount (000) Value (000) - -------------------------------------------------------------------------------- American International Group, MTN 6.050%, 11/01/99 $10,000 $10,040 Associates 6.625%, 07/15/99 7,350 7,364 7.250%, 09/01/99 350 352 8.250%, 12/01/99 3,000 3,045 Associates (C) 4.890%, 06/01/99 50,000 49,994 Associates, MTN 6.750%, 06/28/99 5,500 5,505 7.550%, 07/15/99 4,000 4,012 6.125%, 11/12/99 4,000 4,017 Bear Stearns, MTN 5.715%, 07/30/99 20,000 20,000 Bear Stearns, Ser B, MTN 5.300%, 03/09/00 20,000 20,000 Beneficial, MTN 6.650%, 10/11/99 3,300 3,318 8.100%, 11/09/99 1,600 1,621 7.180%, 12/20/99 2,500 2,528 Beneficial, MTN (C) 5.117%, 08/27/99 3,000 3,001 5.100%, 09/01/99 40,000 40,045 Beta Finance (A) 5.200%, 03/01/00 50,000 49,944 Beta Finance, MTN 6.250%, 02/18/00 631 634 Chrysler Financial 12.750%, 11/01/99 5,000 5,155 9.500%, 12/15/99 22,000 22,506 Chrysler Financial, MTN 6.280%, 06/21/99 8,280 8,286 6.280%, 06/23/99 5,000 5,004 6.160%, 07/28/99 1,000 1,001 6.375%, 01/28/00 17,000 17,137 7 STATEMENT OF NET ASSETS - -------------------------------------------------------------------------------- STI CLASSIC FUNDS May 31, 1999 Prime Quality Money Market Fund--continued - -------------------------------------------------------------------------------- Face Amount (000) Value (000) - -------------------------------------------------------------------------------- Credit Suisse First Boston International (C) 5.425%, 06/02/99 $25,000 $25,000 Credit Suisse First Boston International Gue, MTN (A) 5.400%, 03/20/00 50,000 50,000 CS First Boston (A) 5.290%, 03/20/00 15,000 15,000 CS First Boston (C) 4.860%, 06/01/99 25,000 25,000 Export Development, MTN 8.625%, 03/24/00 3,000 3,075 First Union National Bank (C) 5.020%, 08/19/99 30,000 30,000 Ford Motor Credit 6.375%, 09/15/99 1,500 1,505 Ford Motor Credit, MTN 5.730%, 02/23/00 4,750 4,771 Ford Motor Credit, MTN (C) 5.220%, 08/01/99 6,000 6,007 General Motors Acceptance 7.125%, 06/01/99 5,000 5,000 8.625%, 06/15/99 480 481 8.400%, 10/15/99 5,000 5,058 7.000%, 03/01/00 1,500 1,520 General Motors Acceptance (A) 6.500%, 01/17/00 1,750 1,764 General Motors Acceptance, MTN 6.150%, 09/20/99 6,060 6,080 8.625%, 01/10/00 10,000 10,209 6.250%, 01/11/00 2,100 2,115 7.500%, 06/09/00 1,650 1,683 General Motors Acceptance, MTN (C) 4.960%, 06/01/99 7,500 7,495 Goldman Sachs Group, MTN (A) 5.280%, 02/24/00 25,000 25,000 - -------------------------------------------------------------------------------- Face Amount (000) Value (000) - -------------------------------------------------------------------------------- Household Finance 7.625%, 06/15/99 $ 5,800 $ 5,805 Household Finance, MTN 7.280%, 07/22/99 2,500 2,507 Household International, MTN (C) 5.080%, 07/22/99 15,000 15,004 IBM Credit 5.680%, 07/07/99 1,000 1,001 IBM Credit, MTN (C) 4.950%, 06/15/99 40,000 40,000 International Lease Finance 6.375%, 01/18/00 5,000 5,039 John Deere Capital, MTN 6.430%, 08/09/99 2,000 2,005 J.P. Morgan 5.700%, 02/15/00 2,000 2,004 J.P. Morgan (C) 4.990%, 06/24/99 60,000 59,997 J.p. Morgan, MTN (C) 5.060%, 06/01/99 80,000 80,000 Merrill Lynch (C) 5.090%, 06/01/99 60,000 60,000 Merrill Lynch, MTN (C) 4.990%, 08/05/99 5,000 4,999 5.450%, 08/16/99 10,000 10,019 National City Capital 6.750%, 06/01/99 30,050 30,050 Nationsbank, MTN (C) 5.030%, 06/02/99 28,000 28,006 5.060%, 06/03/99 13,000 13,004 5.066%, 06/03/99 10,000 10,000 NYNEX Capital Funding, MTN 7.640%, 07/19/99 2,000 2,006 Paccar Financial, MTN 6.110%, 12/15/99 5,000 5,027 6.570%, 12/15/99 5,000 5,039 8 - -------------------------------------------------------------------------------- - -------------------------------------------------------------------------------- Face Amount (000) Value (000) - -------------------------------------------------------------------------------- Pitney Bowes, MTN 6.540%, 07/15/99 $ 2,025 $ 2,028 PNC Bank, (C) 4.790%, 06/01/99 20,000 20,000 Teco Finance, MTN (A) 7.140%, 11/19/99 12,000 12,111 Texaco Capital 6.875%, 07/15/99 1,000 1,002 9.450%, 03/01/00 1,600 1,651 Transamerica Finance, MTN 8.750%, 10/01/99 1,000 1,012 5.970%, 12/06/99 1,500 1,506 7.570%, 12/09/99 1,000 1,012 Transamerica Finance, MTN (C) 5.250%, 07/22/99 750 750 ---------- 1,036,520 ---------- Industrial (2.6%) American Home Products 7.700%, 02/15/00 10,520 10,707 Anheuser Busch 8.750%, 12/01/99 12,150 12,366 AT&T, MTN 8.250%, 01/11/00 5,000 5,090 Ford 9.250%, 03/01/00 7,000 7,203 General Mills 6.820%, 10/29/99 5,250 5,286 May Department Stores, MTN 9.560%, 12/01/99 1,000 1,022 Mobil Oil 9.170%, 02/29/00 3,833 3,907 Philip Morris 6.000%, 11/15/99 2,300 2,305 Philip Morris (C) 6.150%, 09/16/99 52,460 52,776 Shell Oil 6.625%, 07/01/99 630 631 - -------------------------------------------------------------------------------- Face Amount (000) Value (000) - -------------------------------------------------------------------------------- United Technologies, MTN 8.300%, 12/15/99 $ 2,000 $ 2,034 Wal-Mart 6.125%, 10/01/99 660 662 5.650%, 02/01/00 22,000 22,073 --------- 126,062 --------- Utilities (0.6%) Duke Energy 8.000%, 11/01/99 5,330 5,392 GTE Southwest 5.820%, 12/01/99 5,900 5,922 Province of Quebec 9.125%, 03/01/00 12,500 12,859 Southern California Edison 6.750%, 01/15/00 2,000 2,019 8.250%, 02/01/00 3,500 3,571 --------- 29,763 --------- Total Corporate Obligations (Cost $1,192,345) 1,192,345 --------- Asset Backed Securities (5.2%) Americredit Auto Receivables Trust, Ser 1998-B, Cl A1 5.199%, 11/12/99 8,644 8,645 Americredit Auto Receivables Trust, Ser 1999-A Cl A1 4.980%, 03/12/00 11,259 11,259 Americredit Auto Receivables Trust, Ser 1999-B, Cl A1 4.917%, 06/12/00 23,000 23,000 9 STATEMENT OF NET ASSETS - -------------------------------------------------------------------------------- STI CLASSIC FUNDS May 31, 1999 Prime Quality Money Market Fund--continued - -------------------------------------------------------------------------------- Face Amount (000) Value (000) - -------------------------------------------------------------------------------- Arcadia Auto Receivables Trust, Ser 1998-D, Cl A1 5.482%, 12/15/99 $ 383 $ 384 Arcadia Auto Receivables Trust, Ser 1999-A, Cl A1 4.960%, 03/15/00 18,662 18,663 Case Equipment Loan Trust, Ser 1998-C, Cl A1 5.420%, 12/15/99 4,017 4,018 First Security Auto Owner Trust, Ser 1999-2, Cl A1 5.015%, 06/15/00 90,000 90,000 Honda Auto Receivables Owner Trust, Ser 1999-1, Cl A1 4.974%, 02/15/00 14,188 14,188 Household Automobile Revolving Trust, Ser 1998-1, Cl A1 5.330%, 12/17/99 9,073 9,073 Key Auto Finance Trust, Ser 1999-1, Cl A1 4.960%, 04/15/00 12,040 12,041 MMCA Automobile Trust, Ser 1999-1, Cl A1 5.066%, 01/15/00 12,065 12,065 Onyx Acceptance Auto Trust, Ser 1999-B, Cl A1 4.930%, 05/15/00 17,000 17,000 Union Acceptance, Ser 1999-A, Cl A1 4.980%, 03/08/00 8,659 8,659 Union Acceptance, Ser 1999-B, Cl A1 4.960%, 06/08/00 22,000 22,000 ------- Total Asset Backed Securities (Cost $250,995) 250,995 ------- - -------------------------------------------------------------------------------- Face Amount (000) Value (000) - -------------------------------------------------------------------------------- Bank Notes (2.5%) American Express Centurion (A) (C) 4.841%, 06/09/99 $ 5,000 $ 5,000 First Union Bank Note (C) 5.040%, 06/01/99 75,000 74,986 First USA 6.500%, 12/23/99 2,200 2,217 Inter-American Development 9.500%, 04/11/00 760 785 Nationsbank 4.880%, 10/18/99 35,000 35,000 -------- Total Bank Notes (Cost $117,988) 117,988 -------- Certificates of Deposit (6.9%) Bayerische Hypo 5.270%, 03/03/00 50,000 49,962 Bayerische Landesbank 4.830%, 06/21/99 100,000 100,000 Bear Stearns, MTN (C) 5.029%, 06/18/99 15,000 15,000 Branch Banking and Trust (C) 5.060%, 06/01/99 50,000 49,990 Canadian Imperial Bank 5.120%, 02/23/00 50,000 49,982 Commerzbank AG 5.160%, 02/25/00 22,000 21,991 PNC Bank N.A. (C) 4.779%, 06/03/99 15,000 14,998 Toronto Dominion Bank 5.270%, 03/03/00 30,000 29,977 -------- Total Certificates of Deposit (Cost $331,900) 331,900 -------- 10 - -------------------------------------------------------------------------------- - -------------------------------------------------------------------------------- Face Amount (000) Value (000) - -------------------------------------------------------------------------------- Insurance Funding Agreements (5.6%) General American Life Insurance, GIC (C) (F) 5.130% $160,000 $160,000 Integrity Life Insurance, GIC (C) (F) 5.130% 110,000 110,000 -------- Total Insurance Funding Agreements (Cost $270,000) 270,000 -------- U.S. Government Agency Obligations (1.7%) FHLMC 4.935%, 06/04/99 15,000 14,994 FNMA 4.680%, 06/10/99 65,000 64,924 SLMA, Ser 1996-3, Cl A1 (C) 5.115%, 06/02/99 2,525 2,510 SLMA, Ser 1996-4, Cl A1 (C) 5.105%, 06/02/99 909 909 -------- Total U.S. Government Agency Obligations (Cost $83,337) 83,337 -------- Repurchase Agreements (9.7%) Barclays 4.82%, dated 05/28/99, matures 06/01/99, repurchase price $20,023,992 (collateralized by FHLB, FHLMC and FNMA obligations: total market value $20,418,104) (B) 20,013 20,013 Deutsche Bank 4.82%, dated 05/28/99, matures 06/01/99, repurchase price $75,060,980 (collateralized by FHLMC obligation: total market value $76,521,219) (B) 75,021 75,021 - -------------------------------------------------------------------------------- Face Amount (000) Value (000) - -------------------------------------------------------------------------------- Merrill Lynch 4.82%, dated 05/28/99, matures 06/01/99, repurchase price $139,825,303 (collateralized by various GNMA obligations: total market value $142,547,920) (B) $ 139,750 $ 139,750 J.P. Morgan 4.82%, dated 05/28/99, matures 06/01/99, repurchase price $121,360,378 (collateralized by various FNMA obligaions: total market value $123,721,327) (B) 121,295 121,295 Salomon Brothers 4.82%, dated 05/28/99, matures 06/01/99, repurchase price $90,056,124 (collateralized by various FHLMC and FNMA obligations: total market value $91,908,156) (B) 90,008 90,008 Swiss 4.82%, dated 05/28/99, matures 06/01/99, repurchase price $20,040,207 (collateralized by FNMA obligation: total market value $20,430,541) (B) 20,030 20,030 ---------- Total Repurchase Agreements (Cost $466,117) 466,117 ---------- Total Investments (101.0%) (Cost $4,867,506) 4,867,506 ---------- Other Assets and Liabilities, Net (-1.0%) (46,174) ---------- 11 STATEMENT OF NET ASSETS - -------------------------------------------------------------------------------- STI CLASSIC FUNDS May 31, 1999 Prime Quality Money Market Fund--concluded - -------------------------------------------------------------------------------- Value (000) - -------------------------------------------------------------------------------- Net Assets: Fund shares of the Trust Class (unlimited authorization -- no par value) based on 3,903,658,704 outstanding shares of beneficial interest $3,903,579 Fund shares of the Investor Class (unlimited authorization -- no par value) based on 918,111,878 outstanding shares of beneficial interest 918,144 Overdistributed net investment income (43) Accumulated net realized loss on investments (348) ---------- Total Net Assets 100.0% 4,821,332 ========== Net Asset Value, Offering and Redemption Price Per Share -- Trust Shares $1.00 ========== Net Asset Value, Offering and Redemption Price Per Share -- Investor Shares $1.00 ========== The accompanying notes are an integral part of the financial statements. For descriptions of abbreviations, please see page 31. 12 - -------------------------------------------------------------------------------- Tax-Exempt Money Market Fund - -------------------------------------------------------------------------------- Face Amount (000) Value (000) - -------------------------------------------------------------------------------- Municipal Bonds (99.4%) Alabama (1.9%) Special Care Facilities, Montgomery Hospital, RB, VRDN (FGIC) (C) (D) 3.350%, 06/03/99 $ 1,120 $ 1,120 University of Alabama, Birmingham Hospital, Ser A, RB, VRDN (C) 3.300%, 06/02/99 13,220 13,220 ------- 14,340 ------- Alaska (1.0%) Alaska State Housing Finance Authority, Ser C, GO (C) 3.350%, 06/02/99 7,870 7,870 ------- Arizona (1.0%) City of Mesa, TECP 3.300%, 10/06/99 5,000 5,000 State, Educational Loan Marketing, Ser A, RB, VRDN, AMT (C) 3.300%, 06/02/99 2,500 2,500 ------- 7,500 ------- Arkansas (0.1%) State, Development Financial Authority, Potlatch Projects, Ser A, RB, VRDN, AMT (C) (D) (E) 3.450%, 06/02/99 1,000 1,000 ------- California (0.7%) State, Higher Educational Loan Authority, Student Loan Revenue, Ser D-2, RB 3.650%, 04/01/00 5,000 5,000 ------- Colorado (1.1%) Cherry Creek, South Metropolitan District Number 1, GO, VRDN (C) 3.250%, 06/03/99 1,350 1,350 - -------------------------------------------------------------------------------- Face Amount (000) Value (000) - -------------------------------------------------------------------------------- Lowry Economic, Redevelopment Authority, Ser B, RB, VRDN (C) 3.250%, 06/02/99 $2,000 $2,000 Smith Creek, Metropolitan District, RB, VRDN (C) 3.300%, 06/03/99 5,300 5,300 ------ 8,650 ------ Delaware (0.2%) State, Educational Development Authority, RB, VRDN (C) (D) (E) 3.625%, 06/03/99 1,875 1,875 ------ District of Columbia (0.1%) Metropolitan Airports Authority, Ser B, RB, AMT 4.000%, 10/01/99 1,000 1,002 ------ Florida (7.6%) Citrus Park, Community Development, RB, VRDN (C) (D) (E) 3.350%, 06/02/99 1,500 1,500 Dade County, Aviation Revenue, Ser B, RB (AMBAC) 5.600%, 10/01/99 750 756 Dade County, Aviation Revenue, Ser C, RB (MBIA) 5.000%, 10/01/99 5,160 5,194 Dade County, Water & Sewer System, Ser 1994, RB, VRDN (FGIC) (C) (D) 3.150%, 06/02/99 8,000 8,000 Hillsborough County, Industrial Development Authority, Pollution Control Revenue, Tampa Electric Project, RB, VRDN, AMT (C) 3.500%, 06/01/99 1,100 1,100 13 STATEMENT OF NET ASSETS - -------------------------------------------------------------------------------- STI CLASSIC FUNDS May 31, 1999 Tax-Exempt Money Market Fund--continued - -------------------------------------------------------------------------------- Face Amount (000) Value (000) - -------------------------------------------------------------------------------- Jacksonville, TECP 2.950%, 06/10/99 $4,100 $ 4,100 Palm Beach County, Jewish Community Campus Corporation, VRDN, RB (AMBAC) (C) (E) 3.200%, 06/02/99 4,000 4,000 Palm Beach County, RB, VRDN (C) 3.300%, 06/03/99 1,000 1,000 State, Housing Financial Agency, Heron Park Project, Ser U, RB, VRDN, AMT (C) (E) 3.450%, 06/02/99 1,190 1,190 State, Local Government Pooled Loan Program, TECP 3.050%, 06/08/99 4,810 4,810 3.000%, 06/10/99 4,000 4,000 State, RB, VRDN (C) 3.320%, 06/03/99 5,295 5,295 St. Lucie County, Pollution Control, TECP 3.000%, 06/09/99 6,500 6,500 2.950%, 06/10/99 5,000 5,000 University of North Florida Foundation, Parking System, RB, VRDN (C) 3.300%, 06/03/99 6,000 6,000 ------- 58,445 ------- Georgia (6.4%) Conyers-Rockdale-Big Haynes, Impoundment Authority Revenue, RB, VRDN (C) 3.250%, 06/02/99 3,000 3,000 Fulton County, Industrial Development Authority, American Red Cross Project, RB, VRDN (C) (D) (E) 3.300%, 06/03/99 1,200 1,200 - -------------------------------------------------------------------------------- Face Amount (000) Value (000) - -------------------------------------------------------------------------------- Gordon County, Development Authority, Sara Lee Corporation, RB, VRDN (C) (D) 3.300%, 06/03/99 $ 1,400 $ 1,400 Lafayette, Industrial Development Authority, Blue-Bird Project, Ser 1991, RB, VRDN (C) (D) (E) 3.300%, 06/03/99 1,000 1,000 Metropolitan Atlanta, Rapid Transit Authority, Georgia Sales Tax Revenue, RB, VRDN (C) 3.320%, 06/03/99 10,000 10,000 Monroe County, Industrial Development Authority, Forsyth Inns Project, RB, VRDN (C) (D) (E) 3.350%, 06/02/99 2,425 2,425 Putnam County, Development Authority, Pollution Control, RB, VRDN (C) 3.350%, 06/01/99 1,700 1,700 State, RB, VRDN (C) 3.320%, 06/03/99 10,545 10,545 State, Ser E, GO 4.000%, 02/01/00 5,600 5,637 State, Municipal Electric Authority, RB, VRDN (C) (D) (E) 3.300%, 06/02/99 4,000 4,000 State, Municipal Gas Authority, Portfolio II Project, Ser A, RB, VRDN (C) 3.150%, 06/02/99 6,625 6,625 Summerville, Development Authority, Ser 1997, RB, VRDN, AMT (C) (E) 3.350%, 06/10/99 2,000 2,000 ------- 49,532 ------- 14 - -------------------------------------------------------------------------------- - -------------------------------------------------------------------------------- Face Amount (000) Value (000) - -------------------------------------------------------------------------------- Hawaii (3.1%) Hawaii State Highway, RB, VRDN (C) (E) 3.320%, 06/03/99 $19,790 $19,790 State, GO, VRDN (MBIA) (C) 3.320%, 06/02/99 4,260 4,260 ------- 24,050 ------- Idaho (0.9%) Nez Pierce County, Pollution Control, Potlatch Project, RB, VRDN (C) (D) (E) 3.350%, 06/02/99 2,000 2,000 3.350%, 06/03/99 1,000 1,000 State, TRAN 4.500%, 06/30/99 4,000 4,003 ------- 7,003 ------- Illinois (8.3%) Bloomington, Airport Authority, GO, VRDN (C) (D) (E) 3.300%, 06/02/99 1,300 1,300 Chicago, Airport Facilities, Centerpoint O'Hare, International Airport Project, RB, VRDN, (C) (E) 3.400%, 06/02/99 3,500 3,500 Chicago, Industrial Development Midwest Project, RB, VRDN, (C) (E) 3.420%, 06/03/99 2,055 2,055 Chicago, O'Hare International Airport, RB, VRDN (C) (D) (E) 3.350%, 07/01/99 1,840 1,840 Chicago, Single-Family Mortage, RB, VRDN, AMT (B) (C) 3.100%, 09/01/99 5,595 5,595 Lockport, Industrial Development Panduit Project, RB, VRDN (C) (E) 3.350%, 06/02/99 2,000 2,000 - -------------------------------------------------------------------------------- Face Amount (000) Value (000) - -------------------------------------------------------------------------------- Savannah, Industrial Development Authority, Metform Project, Ser A, RB, VRDN (C) (D) (E) 3.400%, 06/02/99 $1,900 $1,900 State, Chicago Illinois Sales Tax, RB (FGIC) 4.000%, 01/01/00 1,875 1,885 State, Development Financial Authority, Derby Project, RB, VRDN, AMT (C) (D) (E) 3.500%, 06/02/99 900 900 State, Development Financial Authority, Pollution Control, Illinois Power, Ser A, RB, VRDN (C) (E) 3.400%, 06/02/99 5,000 5,000 State, Educational Facilities Authority, Chicago Children's Museum, RB, VRDN (C) (D) (E) 3.250%, 06/02/99 1,600 1,600 State, Educational Facilities Authority, Museum of Science and Industry, RB, VRDN (C) (E) 3.250%, 06/03/99 5,600 5,600 State, Educational Facilities Authority, RB, VRDN, (C) (E) 3.370%, 06/03/99 9,900 9,903 State, Health Facilities Authority, Advocate Healthcare, Ser B, RB, VRDN (C) (D) 3.300%, 06/02/99 2,900 2,900 State, Health Facilities Authority, Proctor Hospital Project, RB, VRDN (C) 3.250%, 06/02/99 5,400 5,400 15 STATEMENT OF NET ASSETS - -------------------------------------------------------------------------------- STI CLASSIC FUNDS May 31, 1999 Tax-Exempt Money Market Fund--continued - -------------------------------------------------------------------------------- Face Amount (000) Value (000) - -------------------------------------------------------------------------------- State, Health Facilities Authority, Streeterville Corporation, RB, VRDN (C) (D) (E) 3.250%, 06/02/99 $2,000 $ 2,000 State, Health Facilities Authority, Streeterville Corporation, Ser A, RB, VRDN (C) (E) 3.250%, 06/02/99 3,500 3,500 State, Health Facilities Authority, University of Chicago Hospital Project, Ser C, RB, VRDN (MBIA) (C) (D) 3.200%, 06/02/99 4,000 4,000 Wheeling, Industrial Development Circuit Service Project, RB, VRDN (C) (E) 3.420%, 06/03/99 2,800 2,800 ------- 63,678 ------- Indiana (4.0%) Elkhart County, Economic Development, Godfrey Conveyor, RB, VRDN, AMT (C) 3.500%, 06/02/99 1,900 1,900 Elkhart County, Economic Development, Holly Park, RB, AMT, VRDN (C) (D) (E) 3.500%, 06/02/99 2,100 2,100 Fort Wayne, Economic Development Authority, ND Tech Project, RB, VRDN, AMT (C) (D) (E) 3.400%, 06/02/99 1,000 1,000 Indiana State, Educational Facilities Authority, Indiana Wesleyan Project, Ser B, RB, VRDN (C) 3.300%, 06/01/99 2,500 2,500 Indianapolis, Industrial Economic Development Authority, Allied Signal, RB, VRDN (C) (D) 3.400%, 06/02/99 3,500 3,500 - -------------------------------------------------------------------------------- Face Amount (000) Value (000) - -------------------------------------------------------------------------------- Indianapolis, Local Public Improvements, Ser G, RB 3.500%, 08/15/99 $5,000 $5,005 Indianapolis, Local Public Improvements, Ser B, RB (MBIA) 3.350%, 06/01/00 1,550 1,550 Indianapolis, Multi-Family Housing, RB, VRDN, AMT (C) (D) (E) 3.500%, 06/02/99 2,700 2,700 Jasper, Economic Development, Wabash Valley Produce Project, RB, AMT, VRDN (C) (E) 3.420%, 06/03/99 2,000 2,000 La Porte County, Economic Development Revenue, Pedcor Investments-Woodland, RB, VRDN, AMT (C) 3.350%, 06/03/99 2,000 2,000 Michigan City, Industrial Economic Development, Performance Packaging, RB, VRDN, AMT (C) (D) (E) 3.550%, 06/02/99 800 800 State, Development Financial Authority, Culver Educational Facilities, RB, VRDN (C) (E) 3.250%, 06/02/99 2,000 2,000 State, Development Financial Authority, Dekko International Project, RB, VRDN (C) (D) (E) 3.420%, 06/02/99 430 430 State, Development Financial Authority, Educational Facility, Indiana Historical Society, RB, VRDN (C) (E) 3.250%, 06/02/99 1,200 1,200 16 - -------------------------------------------------------------------------------- - -------------------------------------------------------------------------------- Face Amount (000) Value (000) - -------------------------------------------------------------------------------- State, Health Facility Financing Authority, Clarian Health Partners, Ser B, RB, VRDN (C) (D) 3.200%, 06/02/99 $2,000 $ 2,000 ------- 30,685 ------- Iowa (0.4%) Davenport, Ser C, GO 4.375%, 06/01/99 465 465 West Des Moines, Commercial Development, Greyhound Lines Project, RB, VRDN (C) (D) (E) 3.300%, 06/02/99 2,500 2,500 ------- 2,965 ------- Kansas (0.1%) Johnson County, School District Number 229, Ser B, GO 4.250%, 09/01/99 1,000 1,003 ------- Kentucky (1.7%) Clark County, Pollution Control, RB, VRDN (C) (D) (E) 3.100%, 10/15/99 2,500 2,500 Jefferson County, Industrial Building, Fisher-Klosterman Project, RB, VRDN, AMT (C) (D) (E) 3.420%, 06/03/99 2,170 2,170 State, Asset/Liability Commission, General Fund Revenue, TRAN 3.500%, 11/01/99 4,000 4,009 State, Higher Education Student Loan, Ser B, RB, AMT 6.400%, 12/01/99 4,125 4,191 ------- 12,870 ------- Louisiana (3.0%) Calcasieu Parish, Industrial Development Board, Hydroserve Westlake, RB, AMT, VRDN (C) (E) 3.450%, 06/02/99 5,000 5,000 - -------------------------------------------------------------------------------- Face Amount (000) Value (000) - -------------------------------------------------------------------------------- Plaquemines, TECP 3.100%, 06/09/99 $5,500 $ 5,500 State, Eagle Trust 3.340%, 06/03/99 8,000 8,000 State, Offshore Terminal Authority, Deepwater Port, First Stage A-Loop Project, Ser A, RB, VRDN (C) (D) (E) 3.200%,06/02/99 2,000 2,000 State, Public Facilites Authority, Pollution Control, Ciba-Geigy Project, RB, VRDN (C) 3.200%, 06/02/99 2,400 2,400 ------- 22,900 ------- Maryland (2.1%) Baltimore County, Allied Signal Project, VRDN (C) (D) (E) 3.350%, 06/02/99 1,000 1,000 State, Community Development, Department Housing & Community, RB, AMT (FHA) 3.100%, 01/13/00 4,655 4,655 State, Department of Transportation, RB, Prerefunded at 100.75 6.600%, 11/01/99 1,885 1,927 State, Department of Transportation, RB, Prerefunded at 101 6.700%, 11/01/99 3,250 3,332 University of Maryland, Revolving Equipment Loan Program, Ser B, RB, VRDN (C) (E) 3.300%, 06/02/99 4,100 4,100 Washington Suburban, General Construction, GO Prerefunded at 102 6.750%, 12/01/99 1,400 1,453 ------- 16,467 ------- 17 STATEMENT OF NET ASSETS - -------------------------------------------------------------------------------- STI CLASSIC FUNDS May 31, 1999 Tax-Exempt Money Market Fund--continued - -------------------------------------------------------------------------------- Face Amount (000) Value (000) - -------------------------------------------------------------------------------- Michigan (1.9%) Oakland County, Economic Development Authority, Moody Family Limited Project, RB, VRDN, AMT (C) (E) 3.500%, 06/02/99 $ 900 $ 900 State, Building Authority Revenue, Facilities Program Ser I, RB 4.500%, 10/01/99 2,200 2,211 State, Housing Development Authority, RB, VRDN, AMT (C) (D) (E) 3.350%, 06/02/99 1,000 1,000 State, Industrial Development Authority, RB, VRDN (C) (D) (E) 3.300%, 06/01/99 3,000 3,000 State, Municipal Bond Authority, School Loan, RB 3.500%, 12/01/99 2,000 2,006 State, Municipal Bond Authority, Ser B-1, RB 4.500%, 07/02/99 1,000 1,001 State Recreation Program, GO 5.500%, 11/01/99 2,000 2,021 State, Strategic Fund, Consolidated Industrial Project, RB, AMT, VRDN (C) (E) 3.500%, 06/02/99 2,500 2,500 ------- 14,639 ------- Mississippi (2.3%) State, Business Finance, Solid Waste Disposal Revenue, Choctaw Generation, RB, VRDN (C) 3.350%, 06/02/99 3,000 3,000 State, Government Bond, Ser B, GO 4.250%, 08/01/99 4,515 4,519 State, Hospital Equipment & Facilities, TECP 2.800%, 06/15/99 10,000 10,000 ------- 17,519 ------- - -------------------------------------------------------------------------------- Face Amount (000) Value (000) - -------------------------------------------------------------------------------- Missouri (0.9%) Carthage, Industrial Development Authority, Schrieber Project, RB, VRDN, AMT (C) (D) (E) 3.400%, 06/02/99 $3,100 $3,100 Saint Charles County, Industrial Development Authority, Casalon Apartment Project, Ser 95, RB, VRDN (C) (D) (E) 3.200%, 06/03/99 3,100 3,100 State, Environmental Improvement & Energy Resource Authority, Utilicorp United Project, RB, VRDN, AMT (C) (D) (E) 3.400%, 06/02/99 700 700 ------ 6,900 ------ Nebraska (0.3%) American Public Energy Agency, Gas Supply Revenue, Public Gas Agency, Ser C, RB 3.350%, 09/01/99 655 655 Investment Finance Authority, Single-Family Mortgage, Ser B, RB, VRDN (FGIC) (C) (D) 3.000%, 07/15/99 1,825 1,825 ------ 2,480 ------ Nevada (3.1%) Clark County, Airport Improvement Authority, Ser A-1, RB, VRDN (C) (D) (E) 3.150%, 06/02/99 4,200 4,200 Clark County, Industrial Development, RB, VRDN, (C) 3.470%, 06/03/99 6,495 6,495 Clark County, Nevada Airport Improvement Ser A-1, RB, VRDN, AMT, (C) (E) 3.450%, 06/02/99 5,090 5,090 18 - -------------------------------------------------------------------------------- - -------------------------------------------------------------------------------- Face Amount (000) Value (000) - -------------------------------------------------------------------------------- Clark County, School District, RB, VRDN (C) 3.340%, 06/03/99 $8,345 $ 8,345 ------- 24,130 ------- New Hampshire (0.6%) State, Housing Finance Authority, Multi-Family Housing, Fairways Project, RB, VRDN, AMT (C) (D) (E) 3.450%, 06/02/99 5,000 5,000 ------- New Jersey (0.4%) Parsippany, Troy Hills Township, GO 4.500%, 12/01/99 1,055 1,063 State, Ser D, GO (D) 5.100%, 08/15/99 2,000 2,029 ------- 3,092 ------- New Mexico (0.8%) Farmington, Pollution Control, RB, VRDN (C) 3.250%, 11/04/99 4,785 4,785 State, Mortgage Financial Authority, Ser B, RB, VRDN (C) 3.000%, 07/01/99 1,700 1,700 ------- 6,485 ------- New York (4.5%) Long Island Power, TECP 2.800%, 08/12/99 3,000 3,000 New York, GO, VRDN, (C) (E) 3.400%, 06/01/99 7,000 7,000 New York, Industrial Development Special Facility, Korean Airlines Co. Project, Ser A , RB, VRDN, (C) (E) 3.200%, 06/02/99 3,000 3,000 New York, Ser J, RB, GO 5.500%, 07/01/99 1,000 1,002 - -------------------------------------------------------------------------------- Face Amount (000) Value (000) - -------------------------------------------------------------------------------- Southeast Industrial Development, Unilock Project, RB, VRDN, AMT (C) (D) (E) 3.400%, 06/02/99 $ 2,200 $ 2,200 State, Urban Development Corporation, Senior Lien, RB, VRDN (C) 3.300%, 06/03/99 12,155 12,155 Suffolk County, Tax Anticipation Notes, Ser I, RB 3.500%, 08/12/99 6,000 6,006 ------- 34,363 ------- North Carolina (2.5%) Cleveland County, Family YMCA, Recreational Facilities Revenue, RB, VRDN (B) (C) 3.350%, 06/02/99 3,000 3,000 Mecklenburg County, Industrial Facilities & Pollution Control, Sterigenics International Project, RB, VRDN, AMT (C) (D) (E) 3.400%, 06/02/99 1,800 1,800 Mecklenburg County, Ser C, GO, VRDN (C) 3.200%, 06/02/99 5,000 5,000 State, Educational Facilities Catawba College, RB, VRDN (C) (E) 3.250%, 06/02/99 2,000 2,000 State, Educational Facilities, Guilford College, RB, VRDN (C) (D) (E) 3.300%, 06/02/99 2,200 2,200 State, GO, VRDN (C) 3.320%, 06/03/99 5,340 5,340 ------- 19,340 ------- Ohio (3.6%) Lorain County, Catholic Healthcare, TECP 3.000%, 06/08/99 7,000 7,000 19 STATEMENT OF NET ASSETS - -------------------------------------------------------------------------------- STI CLASSIC FUNDS May 31, 1999 Tax-Exempt Money Market Fund--continued - -------------------------------------------------------------------------------- Face Amount (000) Value (000) - -------------------------------------------------------------------------------- State, Air Quality Development Authority, JMG Limited Partnership, Ser A, RB, VRDN, AMT (D) (E) 3.400%, 06/02/99 $ 3,000 $ 3,000 State, Air Quality Development Authority, Edison Project, Ser A, RB, VRDN (C) (D) (E) 2.950%, 06/07/99 8,000 8,000 State, GO 5.400%, 08/01/99 1,000 1,004 State, Pollution Control Authority, Duquesne Project, RB, VRDN, AMT (C) (D) (E) 3.350%, 06/02/99 3,000 3,000 Warrren County, Health Care Facilities Revenue, RB, VRDN (C) 3.250%, 06/02/99 5,700 5,700 ------- 27,704 ------- Oregon (0.8%) State, Ser 73, GO, VRDN (C) (E) 3.200%, 06/02/99 6,000 6,000 ------- Pennsylvania (4.5%) Beaver County, Industrial Development Authority, Duquesne Light Company Project, Ser B, RB, VRDN (C) (D) 3.250%, 06/02/99 1,000 1,000 Cambria County, Industrial Development Authority, Cambria Cogeneration, Ser A-1, RB, AMT, VRDN (C) (D) (E) 3.250%, 06/02/99 10,000 10,000 Geisinger Authority, Health System, Penn State, RB 4.500%, 06/03/99 1,000 1,002 Philadelphia, School District, Tax & Anticipation Notes, Ser A, RB 4.250%, 06/30/99 1,500 1,501 - -------------------------------------------------------------------------------- Face Amount (000) Value (000) - -------------------------------------------------------------------------------- Philadelphia, Tax & Anticipation Notes, Ser A, GO 4.250%, 06/30/99 $ 5,000 $ 5,002 State, Intergovernmental Cooperation Authority, Special Tax Revenue, RB, VRDN (C) 2.900%, 06/15/99 9,630 9,630 State, Ser A, RB, VRDN (C) (D) 3.340%, 06/03/99 6,830 6,830 ------- 34,965 ------- Rhode Island (0.9%) State, GO, VRDN (C) 3.320%, 06/03/99 6,635 6,635 ------- South Carolina (1.5%) Piedmont, Municipal Power Agency, Electrical Revenue, Ser D, RB, VRDN (C) 3.200%, 06/02/99 3,100 3,100 State, Economic Development Authority, Kiswire Project, RB, AMT, VRDN (C) (D) (E) 3.500%, 06/03/99 3,000 3,000 State, Public Service Authority, TECP 3.150%, 06/17/99 4,000 4,000 State, Public Service Authority, Ser A, RB 4.500%, 01/01/00 1,500 1,513 ------- 11,613 ------- Tennessee (5.7%) Covington, Industrial Development Board, Charms Project, RB, VRDN, AMT (C) (D) (E) 3.400%, 06/02/99 3,000 3,000 Hamilton County, Industrial Development Board, Tennessee Aquarium Project, RB, VRDN (C) (D) (E) 3.250%, 06/03/99 3,000 3,000 Jackson County, TECP 2.900%, 06/10/99 10,000 10,000 20 - -------------------------------------------------------------------------------- - -------------------------------------------------------------------------------- Face Amount (000) Value (000) - -------------------------------------------------------------------------------- Jackson, Water & Sewer, RB, Prerefunded @ 102 (AMBAC) (D) (E) 10.375%, 07/01/99 $1,500 $ 1,539 Lower County, River Authority, TECP 2.850%, 06/08/99 5,000 5,000 Memphis-Shelby County, Industrial Development Board, Ponderosa Fibres American Project, RB, AMT, VRDN (C) (D) (E) 3.350%, 06/03/99 1,200 1,200 Nashville & Davidson County, Industrial Development Authority, Multi-Family Mortgage, Chimneytop II Project, RB, VRDN (C) (D) (E) 3.400%, 06/02/99 1,325 1,325 Nashville & Davidson County, Vanderbilt University, RB, VRDN (C) (D) 3.100%, 07/15/99 7,000 7,000 State, Ser A, Anticipation Notes, VRDN (C) (E) 3.150%, 06/02/99 8,000 8,000 State, Ser 108, GO 3.370%, 06/03/99 2,500 2,500 State, School Bond Authority, TECP 3.000%, 06/16/99 1,400 1,400 ------- 43,964 ------- Texas (9.9%) Austin, Convention Center Revenue, Ser B, RB, Prerefunded @ 102 (D) (E) 8.250%, 11/15/99 4,100 4,277 Brazos, River Authority, TECP 2.800%, 06/10/99 6,000 6,000 Dallas, GO 5.500%, 02/15/00 2,105 2,140 Dallas, Rapid Transit, TECP 2.950%, 06/10/99 3,600 3,600 - -------------------------------------------------------------------------------- Face Amount (000) Value (000) - -------------------------------------------------------------------------------- Fort Worth, Water & Sewer, Ser B, RB 5.875%, 02/15/00 $1,325 $1,351 Georgetown, Higher Education Financing Authority, Southwestern University Project, Ser 1984, RB, VRDN (C) (D) (E) 3.250%, 06/02/99 2,000 2,000 Gulf Coast, Waste Disposal, Texwater Pollution Control, RB, VRDN (C) (D) 3.000%, 07/15/99 8,280 8,280 Harris County, Health Facilities Authority, Memorial Hospital Project, Ser B, RB, VRDN (C) (D) 3.150%, 06/02/99 2,600 2,600 Harris County, Industrial Development Authority, Lubrizol Project, RB, VRDN (C) (D) 3.150%, 06/02/99 1,600 1,600 Houston, Water & Sewer, RB, VRDN (FGIC) (C) (E) (D) 3.050%, 06/01/99 8,835 8,835 Lone Star, Airport Improvement Authority, RB, VRDN (C) (D) (E) 3.250%, 06/01/99 1,700 1,700 San Antonio, Electric & Gas, RB (MBIA) 6.375%, 02/01/00 1,350 1,380 Southwest Higher Education Authority, Southern Methodist University Project B, RB, VRDN (C) (E) 3.200%, 06/02/99 5,000 5,000 State, College Student Loan, GO, AMT 5.100%, 08/01/99 1,000 1,003 21 STATEMENT OF NET ASSETS - -------------------------------------------------------------------------------- STI CLASSIC FUNDS May 31, 1999 Tax-Exempt Money Market Fund--concluded - -------------------------------------------------------------------------------- Face Amount (000) Value (000) - -------------------------------------------------------------------------------- State, Public Facilities, RB, VRDN (C) 3.340%, 06/03/99 $ 7,180 $ 7,180 State, RB, VRDN (C) (D) 3.450%, 06/03/99 4,935 4,935 State, Public Finance Authority, State Preservation Board, Ser A, RB (AMBAC) 4.250%, 02/01/00 1,200 1,209 State, TRAN 4.500%, 08/31/99 10,000 10,039 University of Houston, RB 5.500%, 02/15/00 2,850 2,898 ------- 76,027 ------- Utah (2.8%) State, Housing Finance Agency, RB, VRDN, AMT (C) 3.100%, 07/01/99 8,600 8,600 State, Housing Finance Agency, RB, VRDN (C) (D) (E) 3.100%, 07/01/99 11,135 11,135 Utah County, Utah Environmental Impact, USX Corporate Project, RB, VRDN (C) 3.000%, 06/01/99 2,000 2,000 ------- 21,735 ------- Virginia (3.3%) Braxton County, Solid Waste Disposal, Weyerhaeuser Co. Project, RB, VRDN, AMT (C) (E) 3.300%, 06/02/99 7,650 7,650 Chesterfield County, Industrial Development Authority, Allied Signal Project, RB, VRDN (C) 3.400%, 06/02/99 3,000 3,000 Front Royal & Warren County, Industrial Development Authority, Pen Tab Industries Project, RB, VRDN, AMT (C) (D) (E) 3.300%, 06/03/99 2,700 2,700 - -------------------------------------------------------------------------------- Face Amount (000) Value (000) - -------------------------------------------------------------------------------- Prince George County, Industrial Development Authority, Industrial Development Revenue, RB, VRDN, AMT (C) 3.470%, 06/03/99 $5,000 $ 5,000 State, College Building Authority, Educational Facilities, Leasing program, RB 4.250%, 02/01/00 6,610 6,664 ------- 25,014 ------- Washington (3.4%) Pierce County, Washington Economic Development, Weyerhaeuser Real Estate Project, RB, VRDN (C) (D) (E) 3.250%, 06/02/99 3,000 3,000 Port of Seattle, VRDN (C) (D) 3.350%, 06/02/99 1,200 1,200 Seattle, Water Systems Revenue, RB, VRDN (C) 3.350%, 06/02/99 4,200 4,200 South Columbia Basin, RB 5.700%, 12/01/99 1,000 1,013 State, Public Power Supply System, Nuclear Project No. 1, Ser 1A-3, RB, VRDN (C) (D) (E) 3.200%, 06/02/99 3,300 3,300 State, Public Power Supply System, Nuclear Project No. 1, Ser 1A-1, RB, VRDN (C) (D) (E) 3.300%, 06/02/99 4,725 4,725 State, Public Power Supply System, Nuclear Project No. 3, Ser 3A, RB, VRDN (MBIA) (C) (D) 3.000%, 06/01/99 5,000 5,000 State, GO, VRDN (C) (D) (E) 3.200%, 12/09/99 3,335 3,335 ------- 25,773 ------- 22 - -------------------------------------------------------------------------------- - -------------------------------------------------------------------------------- Face Amount (000) Value (000) - -------------------------------------------------------------------------------- West Virginia (0.5%) Marshall County, Pollution Control Authority, Allied Signal Project, RB, VRDN (C) (D) 3.400%, 06/02/99 $2,000 $2,000 Marshall County, Pollution Control Authority, PPG Industries Project, RB, VRDN (C) (D) 3.550%, 06/03/99 2,000 2,000 ------ 4,000 ------ Wisconsin (0.9%) Appleton, Industrial Development Revenue, Pro Lable Project, RB, VRDN, AMT (C) 3.520%, 06/02/99 950 950 Germantown, Industrial Revenue, Speaker Project, RB, VRDN, AMT (C) 3.520%, 06/03/99 905 905 Holland, Industrial Development Revenue, White Clover Dairy Project, RB, VRDN, AMT (C) 3.420%, 06/02/99 1,500 1,500 Oconomowoc, Industrial Development Revenue, Quest Technologies Project, RB, VRDN, AMT (C) 3.420%, 06/02/99 1,550 1,550 Wisconsin, Health Facilities, Saint Lukes Medical Center, RB, VRDN (C) (D) (E) 3.250%, 06/02/99 1,840 1,840 ------ 6,745 ------ - -------------------------------------------------------------------------------- Face Amount (000) Value (000) - -------------------------------------------------------------------------------- Wyoming (0.6%) Sweetwater, RB, VRDN (C) 3.200%, 06/01/99 $ 4,600 $4,600 --------- Total Municipal Bonds (Cost $765,558) 765,558 --------- Cash Equivalent (0.3%) SEI Tax-Exempt Trust Institutional Tax-Free Portfolio 2,227 2,227 --------- Total Cash Equivalent (Cost $2,227) 2,227 --------- Total Investments (99.7%) (Cost $767,785) 767,785 --------- Other Assets and Liabilities, Net (0.3%) 2,709 --------- Net Assets: Fund shares of the Trust Class (unlimited authorization -- no par value) based on 641,639,113 outstanding shares of beneficial interest 641,639 Fund shares of the Investor Class (unlimited authorization -- no par value) based on 128,859,463 outstanding shares of beneficial interest 128,860 Accumulated net realized loss on investments (5) --------- Total Net Assets 100.0% $ 770,494 ========= Net Asset Value, Offering and Redemption Price Per Share -- Trust Shares $ 1.00 ========= Net Asset Value, Offering and Redemption Price Per Share -- Investor Shares $ 1.00 ========= The accompanying notes are an integral part of the financial statements. For descriptions of abbreviations, please see page 31. 23 STATEMENT OF NET ASSETS - -------------------------------------------------------------------------------- STI CLASSIC FUNDS May 31, 1999 Tax-Free Money Market Fund - -------------------------------------------------------------------------------- Face Amount (000) Value (000) - -------------------------------------------------------------------------------- Municipal Bonds (96.9%) Colorado (1.3%) Denver, Public Facility Improvements, Major League Baseball Stadium Project, Ser A, RB (FGIC) 5.900%, 10/01/99 $3,500 $ 3,529 ------- District of Columbia (2.7%) District of Columbia, Healthcare Facility, St. John's Child Development Center, RB (C) 3.800%, 06/01/99 1,100 1,100 District of Columbia, RB (C) (E) 3.250%, 06/01/99 6,260 6,260 ------- 7,360 ------- Georgia (2.9%) State, COP (MBIA) (C) 3.320%, 06/03/99 8,000 8,000 ------- Hawaii (0.8%) State, Housing Finance & Development Authority, Single- Family Housing, RB, AMT (C) 3.420%, 07/01/99 2,250 2,250 ------- Illinois (6.2%) Chicago, O'Hare International Airport, RB, AMT (C) 3.390%, 06/03/99 5,000 5,000 Chicago, Public Improvements, Ser C, GO (E) 3.050%, 10/31/99 5,000 5,000 State, Health Facility Authority, Swedish Covenant Hospital Project, RB (AMBAC) (C) 3.400%, 06/02/99 2,200 2,200 State, Toll Highway Authority, RB (FSA) (C) 3.250%, 06/03/99 5,000 5,000 ------- 17,200 ------- - -------------------------------------------------------------------------------- Face Amount (000) Value (000) - -------------------------------------------------------------------------------- Kansas (0.9%) Johnson County, School Improvements, GO (AMBAC) 8.000%, 09/01/99 $ 2,525 $ 2,555 ------- Louisiana (2.8%) Jefferson Parish, Home Mortgage, RB (C) 3.390%, 06/03/99 7,720 7,720 ------- Maryland (4.2%) Montgomery County, Housing Opportunity Commission, Issue 1, RB, AMT (C) (E) 3.500%, 06/03/99 10,000 10,000 State, Health & Higher Educational Facilities Authority, Pooled Loan Project, Ser D, RB (C) (E) 3.200%, 06/03/99 1,675 1,675 ------- 11,675 ------- Michigan (3.6%) Detroit, Sewer Disposal, Ser B, RB (MBIA) (C) 3.400%, 06/02/99 10,000 10,000 ------- New York (9.0%) Long Island, Power Authority, Electric System Project, RB (C) 3.430%, 06/03/99 4,000 4,000 New York City, GO (C) 3.340%, 06/03/99 11,960 11,960 New York City, Municipal Water Financing Authority, RB (FSA) (C) 3.320%, 06/03/99 9,000 9,000 ------- 24,960 ------- Pennsylvania (11.1%) Emmaus, General Authority, RB (FSA) (C) 3.250%, 06/02/99 12,000 12,000 24 - -------------------------------------------------------------------------------- - -------------------------------------------------------------------------------- Face Amount (000) Value (000) - -------------------------------------------------------------------------------- Philadelphia, Gas Works, RB (FSA) (C) 3.320%, 06/03/99 $3,635 $ 3,635 Philadelphia, Water & Wastewater, RB (AMBAC) (C) 3.320%, 06/03/99 7,000 7,000 Pittsburgh, GO (C) 3.320%, 06/03/99 8,000 8,000 ------- 30,635 ------- South Carolina (3.0%) Florence County, McLeod Regional Medical Center Project, Ser A, RB (FGIC) (C) (E) 3.250%, 06/03/99 8,200 8,200 ------- Tennessee (1.8%) Shelby County, Health, Educational & Housing Facilities, Multi-Family Housing, Ser A, RB, AMT (C) (E) 3.450%, 06/02/99 5,000 5,000 ------- Texas (7.6%) Houston, Water & Sewer System, RB (FGIC) (C) 3.320%, 06/03/99 5,000 5,000 Plano, TECP 2.950%, 06/16/99 7,000 7,000 San Antonio, Electric & Gas, RB, Partially Prerefunded 02/01/07 @ 101 (C) (E) 3.320%, 06/03/99 9,000 9,000 ------- 21,000 ------- Virginia (35.4%) Alexandria, Industrial Development, Pooled Loan Project, Ser A, RB (C) (E) 3.250%, 06/02/99 2,875 2,875 - -------------------------------------------------------------------------------- Face Amount (000) Value (000) - -------------------------------------------------------------------------------- Alexandria, Industrial Development, Ser A, RB (C) 3.800%, 06/02/99 $ 3,500 $ 3,500 Almermarle County, Industrial Development, Health Services, RB (C) 3.250%, 06/02/99 4,400 4,400 Chesterfield, TECP 2.850%, 06/25/99 10,000 10,000 Fairfax County, Economic Development, Flint Hill School Project, RB (C) (E) 3.250%, 06/02/99 4,340 4,340 Fairfax County, Public Improvements, GO (C) 3.320%, 06/03/99 6,300 6,300 Hampton Roads, Regional Jail Authority, Ser B, RB (C) (E) 3.300%, 06/02/99 2,000 2,000 King George County, Industrial Development, Birchwood Power Partners, Ser B, RB (C) (E) 3.500%, 06/01/99 4,000 4,000 Louisa County, Industrial Development, RB (C) (E) 3.250%, 06/03/99 1,900 1,900 Norfolk, Industrial Development, Childrens Hospital Project, RB (C) (E) 3.250%, 06/01/99 4,000 4,000 Pulaski County, Industrial Development Authority, Pulaski Furniture Project, Ser A, RB (C) 3.800%, 06/02/99 4,219 4,219 Pulaski County, Industrial Development Authority, Pulaski Furniture Project, Ser B, RB (C) 3.800%, 06/02/99 500 500 25 STATEMENT OF NET ASSETS - -------------------------------------------------------------------------------- STI CLASSIC FUNDS May 31, 1999 Tax-Free Money Market Fund--concluded - -------------------------------------------------------------------------------- Face Amount (000) Value (000) - -------------------------------------------------------------------------------- Richmond, BAN (C) 3.250%, 06/03/99 $ 570 $ 570 Richmond, Redevelopment & Housing Authority, Multi-Family Housing, RB (C) 3.420%, 06/03/99 13,000 13,000 Roanoke County, Industrial Development, Roanoke Memorial Hospital Project, Ser C, RB (C) (E) 3.200%, 06/02/99 2,000 2,000 State, College Building Authority, Public Higher Education Financing, Ser A, RB 3.150%, 09/01/99 1,850 1,850 State, Port Authority, RB, AMT (MBIA) (C) 3.390%, 06/03/99 10,100 10,100 State, Public Building Authority, RB 5.100%, 08/01/99 7,115 7,139 State, University & Hospital & Public Improvements, GO 5.000%, 06/02/99 2,000 2,035 Suffolk, Redevelopment & Housing Authority, Multi-Family Housing, Windsor Fieldstone Project, RB (C) 3.800%, 6/03/99 4,218 4,218 York County, TECP 2.800%, 06/25/99 8,800 8,800 ------- 97,746 ------- Washington (3.6%) Washington State, Public Power Supply System, Nuclear Project Number 1, RB, Prerefunded @ 100 6.000%, 07/01/99 10,000 10,019 ------- Total Municipal Bonds (Cost $267,849) 267,849 ------- - -------------------------------------------------------------------------------- Face Amount (000) Value (000) - -------------------------------------------------------------------------------- Cash Equivalents (2.4%) Financial Square Tax Free Portfolio $ 6,003 $6,003 SEI Institutional Tax Free Portfolio 644 644 --------- Total Cash Equivalents (Cost $6,647) 6,647 --------- Total Investments (99.3%) (Cost $274,496) 274,496 --------- Other Assets and Liabilities, Net (0.7%) 1,890 --------- Net Assets: Fund shares of the Trust Class (unlimited authorization -- no par value) based on 270,461,831 outstanding shares of beneficial interest 270,439 Fund shares of the Investor Class (unlimited authorization -- no par value) based on 5,955,089 outstanding shares of beneficial interest 5,955 Overdistributed net investment income (1) Accumulated net realized loss on investments (7) --------- Total Net Assets 100.0% $ 276,386 ========= Net Asset Value, Offering and Redemption Price Per Share -- Trust Shares $ 1.00 ========= Net Asset Value, Offering and Redemption Price Per Share -- Investor Shares $ 1.00 ========= The accompanying notes are an integral part of the financial statements. For descriptions of abbreviations, please see page 31. 26 - -------------------------------------------------------------------------------- U.S. Government Securities Money Market Fund - -------------------------------------------------------------------------------- Face Amount (000) Value (000) - -------------------------------------------------------------------------------- U.S. Treasury Obligation (10.8%) U.S. Treasury Note 5.500%, 02/29/00 $50,000 $50,256 ------- Total U.S. Treasury Obligation (Cost $50,256) 50,256 ------- Government Agency Obligations (14.1%) Agency for International Development, Ser 5A 7.750%, 11/15/99 50,000 50,637 Agency for International Development (C) 4.756%, 11/15/99 15,000 14,976 ------- Total Government Agency Obligations (Cost $65,613) 65,613 ------- Repurchase Agreements (75.3%) ABN-AMRO 4.80%, dated 05/28/99, matures 06/01/99, repurchase price $14,007,466 (collateralized by U.S. Treasury Note: total market value $14,280,482) (B) 14,000 14,000 Barclays 4.80%, dated 05/28/99, matures 06/01/99, repurchase price $19,044,181 (collateralized by U.S. Treasury Note: total market value $19,414,792) (B) 19,034 19,034 Deutsche Bank 4.80%, dated 05/28/99, matures 06/01/99, repurchase price $19,968,414 (collateralized by U.S. Treasury Note: total market value $20,356,970) (B) 19,958 19,958 Greenwich 4.80%, dated 05/28/99, matures 06/01/99, repurchase price $20,020,513 (collateralized by U.S. Treasury Note: total market value $20,412,490) (B) 20,010 20,010 - -------------------------------------------------------------------------------- Face Amount (000) Value (000) - -------------------------------------------------------------------------------- J.P. Morgan 4.80%, dated 05/28/99, matures 06/01/99, repurchase price $110,917,235 (collateralized by a GNMA obligation: total market value $113,075,273) (B) $ 110,858 $110,858 Merrill Lynch 4.80%, dated 05/28/99, matures 06/01/99, repurchase price $20,031,391 (collateralized by various GNMA obligations: total market value $20,424,265) (B) 20,021 20,021 Morgan Stanley 4.80%, dated 05/28/99, matures 06/01/99, repurchase price $109,997,946 (collateralized by various GNMA obligations: total market value $113,740,112) (B) 109,939 109,939 Salomon Brothers 4.80%, dated 05/28/99, matures 06/01/99, repurchase price $17,099,617 (collateralized by U.S. Treasury Note: total market value $17,446,918) (B) 17,091 17,091 SBC Warburg 4.80%, dated 05/28/99, matures 06/01/99, repurchase price $19,914,879 (collateralized by U.S. Treasury Note: total market value $20,306,494) (B) 19,904 19,904 -------- Total Repurchase Agreements (Cost $350,815) 350,815 -------- Total Investments (100.2%) (Cost $466,684) 466,684 -------- Other Assets and Liabilities, Net (-0.2%) (753) -------- 27 STATEMENTS OF NET ASSETS - -------------------------------------------------------------------------------- STI CLASSIC FUNDS May 31, 1999 U.S. Government Securities Money Market Fund--concluded - -------------------------------------------------------------------------------- Value (000) - -------------------------------------------------------------------------------- Net Assets: Fund shares of the Trust Class (unlimited authorization -- no par value) based on 404,208,908 outstanding shares of beneficial interest $404,209 Fund shares of the Investor Class (unlimited authorization -- no par value) based on 61,445,158 outstanding shares of beneficial interest 61,445 Undistributed net investment income 86 Accumulated net realized gain on investments 191 -------- Total Net Assets 100.0% $465,931 ======== Net Asset Value, Offering and Redemption Price Per Share -- Trust Shares $1.00 ======== Net Asset Value, Offering Price and Redemption Price Per Share -- Investor Shares $1.00 ======== The accompanying notes are an integral part of the financial statements. For descriptions of abbreviations, please see page 31. 28 - -------------------------------------------------------------------------------- U.S. Treasury Money Market Fund - -------------------------------------------------------------------------------- Face Amount (000) Value (000) - -------------------------------------------------------------------------------- U.S. Treasury Obligations (28.3%) U.S. Treasury Bills 4.190%, 06/03/99 $ 50,000 $ 49,989 4.250%, 06/17/99 50,000 49,912 U.S. Treasury Notes 6.750%, 06/30/99 15,000 15,014 5.625%, 11/30/99 15,000 15,067 5.625%, 12/31/99 15,000 15,080 5.875%, 02/15/00 15,000 15,100 5.500%, 03/31/00 25,000 25,102 6.375%, 05/15/00 30,000 30,372 -------- Total U.S. Treasury Obligations (Cost $215,636) 215,636 -------- Repurchase Agreements (70.5%) ABN-AMRO 4.77%, dated 05/28/99, matures 06/01/99, repurchase price $34,046,305 (collateralized by U.S. Treasury STRIPS: total market value $34,709,165) (B) 34,028 34,028 Barclays 4.77%, dated 05/28/99, matures 06/01/99, repurchase price $29,219,675 (collateralized by U.S. Treasury Note: total market value $29,788,780) (B) 29,204 29,204 Deutsche Bank 4.77%, dated 05/28/99, matures 06/01/99, repurchase price $179,292,640 (collateralized by various U.S. Treasury Bonds and Notes: total market value $182,782,325) (B) 179,198 179,198 - -------------------------------------------------------------------------------- Face Amount (000) Value (000) - -------------------------------------------------------------------------------- Greenwich Bank 4.77%, dated 05/28/99, matures 06/01/99, repurchase price $179,851,869 (collateralized by U.S. Treasury Note: total market value $183,353,384) (B) $179,757 $179,757 Merrill Lynch 4.77%, dated 05/28/99, matures 06/01/99, repurchase price $20,014,602 (collateralized by U.S. Treasury STRIPS: total market value $20,404,674) (B) 20,004 20,004 Morgan Stanley 4.77%, dated 05/28/99, matures 06/01/99, repurchase price $22,425,774 (collateralized by U.S. Treasury Note: total market value $22,870,506) (B) 22,414 22,414 J.P. Morgan 4.77%, dated 05/28/99, matures 06/01/99, repurchase price $20,789,780 (collateralized by U.S. Treasury Note: total market value $21,195,355) (B) 20,779 20,779 Salomon 4.77%, dated 05/28/99, matures 06/01/99, repurchase price $23,408,760 (collateralized by various U.S. Treasury Notes: total market value $23,869,853) (B) 23,396 23,396 SBC Warburg 4.77%, dated 05/28/99, matures 06/01/99, repurchase price $27,014,310 (collateralized by U.S. Treasury Bond: total market value $27,545,730) (B) 27,000 27,000 -------- Total Repurchase Agreements (Cost $535,780) 535,780 -------- 29 STATEMENT OF NET ASSETS - -------------------------------------------------------------------------------- STI CLASSIC FUNDS May 31, 1999 U.S. Treasury Money Market Fund--concluded - -------------------------------------------------------------------------------- Value (000) - -------------------------------------------------------------------------------- Total Investments (98.8%) (Cost $751,416) $751,416 -------- Other Assets and Liabilities, Net (1.2%) 9,417 -------- Net Assets: Fund shares of the Trust Class (unlimited authorization -- no par value) based on 760,916,765 outstanding shares of beneficial interest 760,833 -------- Total Net Assets 100.0% $760,833 ======== Net Asset Value, Offering and Redemption Price Per Share -- Trust Shares $1.00 ======== The accompanying notes are an integral part of the financial statements. For descriptions of abbreviations, please see page 31. 30 - -------------------------------------------------------------------------------- Key to Abbreviations used in the Statement of Net Assets AMBAC Security insured by the American Municipal Bond Assurance Corporation AMT Alternative Minimum Tax BAN Bond Anticipation Note Cl Class COP Certificate of Participation FGIC Security insured by the Financial Guaranty Insurance Company FFCB Federal Farm Credit Bank FHA Federal Housing Authority FHLMC Federal Home Loan Mortgage Corporation FNMA Federal National Mortgage Association FSA Security insured by Financial Securities Assurance GIC Guaranteed Investment Contract GNMA Government National Mortgage Association GO General Obligation MBIA Security insured by the Municipal Bond Insurance Association MTN Medium Term Note RB Revenue Bond Ser Series SLMA Student Loan Marketing Association STRIPS Separately Traded Registered Interest and Principal Security TECP Tax Exempt Commercial Paper TRAN Tax & Revenue Anticipation Note VRDN Variable Rate Demand Note (A) Private Placement Security (B) Tri-Party Repurchase Agreement (C) Adjustable Rate Security. The rate reported on the Statement of Net Assets is the rate in effect on May 31, 1999. The date shown is the next scheduled reset date. (D) Put and demand features exist requiring the issuer to repurchase the instrument prior to maturity. (E) Securities are held in connection with a letter of credit issued by a major bank. (F) The contract has no stated maturity date, but may be terminated unconditionally by the Fund at anytime upon at least 7 days notice to the issuer. 31
STATEMENT OF OPERATIONS (000) - ------------------------------------------------------------------------------------------------------------------------------------ STI CLASSIC FUNDS For The Period Ended May 31, 1999 and November 30, 1998 U.S. Government Tax-Exempt Securities Prime Quality Money Money Money Market Market Tax-Free Market U.S. Treasury Fund Fund Money Market Fund Fund Money Market Fund ------------- ---------- --------------------- ---------- ---------------------- 06/01/98- 06/01/98- 12/01/98 12/01/97 06/01/98- 12/01/98 12/01/97 05/31/99 05/31/99 05/31/99 11/30/98 05/31/99 05/31/99 11/30/98 -------- -------- -------- -------- -------- -------- -------- Interest Income ........................ $142,719 $24,519 $4,823 $8,624 $23,472 $18,000 $33,565 -------- ------- ------ ------ ------- ------- ------- Expenses: Investment Advisory Fees ............ 17,531 4,122 607 963 2,992 1,486 2,412 Less: Investment Advisory Fees Waived/Reimbursed......... (4,356) (1,057) (3) -- (607) (21) -- Administrator Fees .................. 2,093 584 222 361 359 550 927 Less: Administrator Fees Waived ..... (250) -- -- -- (3) -- -- Transfer Agent Fees-- Trust Shares .. 18 14 73 121 13 183 309 Transfer Agent Fees-- Investor Shares 19 17 -- -- 33 -- -- Transfer Agent Out of Pocket Fees ... 291 77 1 -- 55 1 -- Printing Expenses ................... 142 32 12 9 46 27 24 Custody Fees ........................ 73 15 56 95 11 143 230 Professional Fees ................... 164 41 35 24 23 103 65 Trustee Fees ........................ 29 11 2 3 2 5 9 Registration Fees ................... 414 49 7 21 6 27 68 Distribution Fees-- Trust Shares .... -- -- 213 349 -- 539 927 Less: Distribution Fees Waived -- Trust Shares ................... -- -- (213) (349) -- (539) (927) Distribution Fees-- Investor Shares . 1,157 214 14 33 104 -- -- Less: Distribution Fees Waived -- Investor Shares ................ (188) (58) (14) (33) (49) -- -- Insurance and Other Fees ............ 39 4 5 3 -- 59 40 -------- ------- ------ ------ ------- ------- ------- Total Expenses ...................... 17,176 4,065 1,017 1,600 2,985 2,563 4,084 -------- ------- ------ ------ ------- ------- ------- Net Investment Income ............... 125,543 20,454 3,806 7,024 20,487 15,437 29,481 -------- ------- ------ ------ ------- ------- ------- Net Realized Gain (Loss) on Securities Sold ................ (19) (1) 2 (9) 191 -- -- -------- ------- ------ ------ ------- ------- ------- Net Increase in Net Assets from Operations ................ $125,524 $20,453 $3,808 $7,015 $20,678 $15,437 $29,481 ======== ======= ====== ====== ======= ======= =======
Amounts designated as "--" are either $0 or round to $0. The accompanying notes are an integral part of the financial statements. 32 STATEMENT OF CHANGES IN NET ASSETS (000) - -------------------------------------------------------------------------------- STI CLASSIC FUNDS For The Period Ended November 30, and The Year Ended May 31,
Prime Quality Tax-Exempt Tax-Free Money Market Fund Money Market Fund Money Market Fund ---------------------- ------------------- ----------------------------- 06/01/98- 06/01/97- 06/01/98- 06/01/97- 12/01/98- 12/01/97- 12/01/96- 05/31/99 05/31/98 05/31/99 05/31/98 05/31/99 11/30/98 11/30/97 ---------- ---------- -------- ---------- -------- -------- -------- Operations: Net Investment Income .............................. $ 125,543 $ 95,132 $ 20,454 $ 17,568 $ 3,806 $ 7,024 $ 6,505 Net Realized Gain (Loss) on Investments............. (19) 50 (1) -- 2 (9) 3 ---------- ---------- -------- ---------- -------- -------- -------- Increase in Net Assets from Operations............ 125,524 95,182 20,453 17,568 3,808 7,015 6,508 ---------- ---------- -------- ---------- -------- -------- -------- Distributions to Shareholders: Net Investment Income: Trust Shares ..................................... (99,427) (77,500) (16,665) (13,717) (3,739) (6,778) (6,352) Investor Shares .................................. (26,132) (17,632) (3,788) (3,852) (91) (239) (161) ---------- ---------- -------- ---------- -------- -------- -------- Total Distributions ............................ (125,559) (95,132) (20,453) (17,569) (3,830) (7,017) (6,513) ---------- ---------- -------- ---------- -------- -------- -------- Capital Transactions (1): Trust Shares: Proceeds from Shares Issued....................... 4,698,805 3,915,486 984,432 1,039,352 246,896 369,536 393,449 Shares Issued in Connection with Crestar Merger... 1,179,761 -- -- -- -- -- -- Reinvestment of Cash Distributions................ 4,306 3,699 -- -- -- -- -- Cost of Shares Redeemed .......................... (3,859,828) (3,125,552) (790,815) (924,334) (247,343) (325,471) (348,927) ---------- ---------- -------- ---------- -------- -------- -------- Increase (Decrease) in Net Assets From Trust Share Transactions.......................... 2,023,044 793,633 193,617 115,018 (447) 44,065 44,522 ---------- ---------- -------- ---------- -------- -------- -------- Investor Shares: Proceeds from Shares Issued....................... 1,199,739 806,517 356,214 346,323 5,749 22,060 16,177 Shares Issued in Connection with Crestar Merger... 187,089 -- -- -- -- -- -- Reinvestment of Cash Distributions................ 24,846 15,979 3,497 3,314 110 237 144 Cost of Shares Redeemed .......................... (905,401) (694,228) (365,395) (317,112) (8,754) (21,081) (11,681) ---------- ---------- -------- ---------- -------- -------- -------- Increase (Decrease) in Net Assets From Investor Share Transactions....................... 506,273 128,268 (5,684) 32,525 (2,895) 1,216 4,640 ---------- ---------- -------- ---------- -------- -------- -------- Increase (Decrease) in Net Assets From Share Transactions......................... 2,529,317 921,901 187,933 147,543 (3,342) 45,281 49,162 ---------- ---------- -------- ---------- -------- -------- -------- Total Increase (Decrease) in Net Assets......... 2,529,282 921,951 187,933 147,542 (3,364) 45,279 49,157 ---------- ---------- -------- ---------- -------- -------- -------- Net Assets: Beginning of Period ................................ 2,292,050 1,370,099 582,561 435,019 279,750 234,471 185,314 ---------- ---------- -------- ---------- -------- -------- -------- End of Period ...................................... $4,821,332 $2,292,050 $770,494 $ 582,561 $276,386 $279,750 $234,471 ========== ========== ======== ========== ======== ======== ======== (1) Shares Issued and Redeemed: Trust Shares: Shares Issued .................................... 4,698,805 3,915,486 984,432 1,039,352 246,896 369,536 393,449 Shares Issued in Connection with Crestar Merger... 1,179,840 -- -- -- -- -- -- Shares Issued in Lieu of Cash Distributions....... 4,306 3,699 -- -- -- -- -- Shares Redeemed .................................. (3,859,828) (3,125,552) (790,815) (924,334) (247,343) (325,471) (348,927) ---------- ---------- -------- ---------- -------- -------- -------- Net Trust Share Transactions.................... 2,023,123 793,633 193,617 115,018 (447) 44,065 44,522 ---------- ---------- -------- ---------- -------- -------- -------- Investor Shares: Shares Issued .................................... 1,199,740 806,517 356,214 346,323 5,749 22,060 16,177 Shares Issued in Connection with Crestar Merger... 187,089 -- -- -- -- -- -- Shares Issued in Lieu of Cash Distributions....... 24,846 15,979 3,497 3,314 110 237 144 Shares Redeemed .................................. (905,433) (694,228) (365,395) (317,112) (8,754) (21,081) (11,681) ---------- ---------- -------- ---------- -------- -------- -------- Net Investor Share Transactions................. 506,242 128,268 (5,684) 32,525 (2,895) 1,216 4,640 ---------- ---------- -------- ---------- -------- -------- -------- Net Change in Capital Shares.................... 2,529,365 921,901 187,933 147,543 (3,342) 45,281 49,162 ---------- ---------- -------- ---------- -------- -------- -------- U.S. Government U.S. Treasury Securities Securities Money Market Fund Money Market Fund --------------------- ------------------------------------- 06/01/98- 06/01/97- 12/01/98- 12/01/97- 12/01/96- 05/31/99 05/31/98 05/31/99 11/30/98 11/30/97 -------- -------- -------- ---------- ---------- Operations: Net Investment Income .............................. $ 20,487 $ 19,342 $ 15,437 $ 29,481 $ 24,451 Net Realized Gain (Loss) on Investments............. 191 146 -- -- -- -------- -------- -------- ---------- ---------- Increase in Net Assets from Operations............ 20,678 19,488 15,437 29,481 24,451 -------- -------- -------- ---------- ---------- Distributions to Shareholders: Net Investment Income: Trust Shares ..................................... (17,844) (16,621) (15,522) (29,476) (24,456) Investor Shares .................................. (2,641) (2,723) -- -- -- -------- -------- -------- ---------- ---------- Total Distributions ............................ (20,485) (19,344) (15,522) (29,476) (24,456) -------- -------- -------- ---------- ---------- Capital Transactions (1): Trust Shares: Proceeds from Shares Issued....................... 739,766 776,773 681,589 1,131,937 1,251,595 Shares Issued in Connection with Crestar Merger... -- -- -- -- -- Reinvestment of Cash Distributions................ 1,170 380 1 4 146 Cost of Shares Redeemed .......................... (714,135) (744,136) (620,595) (1,064,404) (1,008,406) -------- -------- -------- ---------- ---------- Increase (Decrease) in Net Assets From Trust Share Transactions.......................... 26,801 33,017 60,995 67,537 243,335 -------- -------- -------- ---------- ---------- Investor Shares: Proceeds from Shares Issued....................... 294,871 178,312 -- -- -- Shares Issued in Connection with Crestar Merger... -- -- -- -- -- Reinvestment of Cash Distributions................ 2,578 2,600 -- -- -- Cost of Shares Redeemed .......................... (294,755) (185,358) -- -- -- -------- -------- -------- ---------- ---------- Increase (Decrease) in Net Assets From Investor Share Transactions....................... 2,694 (4,446) -- -- -- -------- -------- -------- ---------- ---------- Increase (Decrease) in Net Assets From Share Transactions......................... 29,495 28,571 60,995 67,537 243,335 -------- -------- -------- ---------- ---------- Total Increase (Decrease) in Net Assets......... 29,688 28,715 60,910 67,542 243,330 -------- -------- -------- ---------- ---------- Net Assets: Beginning of Period ................................ 436,243 407,528 699,923 632,381 389,051 -------- -------- -------- ---------- ---------- End of Period ...................................... $465,931 $436,243 $760,833 $ 699,923 $ 632,381 ======== ======== ======== ========== ========== (1) Shares Issued and Redeemed: Trust Shares: Shares Issued .................................... 739,766 776,773 681,589 1,131,937 1,251,595 Shares Issued in Connection with Crestar Merger... -- -- -- -- -- Shares Issued in Lieu of Cash Distributions....... 1,170 380 1 4 146 Shares Redeemed .................................. (714,135) (744,136) (620,595) (1,064,404) (1,008,406) -------- -------- -------- ---------- ---------- Net Trust Share Transactions.................... 26,801 33,017 60,995 67,537 243,335 -------- -------- -------- ---------- ---------- Investor Shares: Shares Issued .................................... 294,871 178,312 -- -- -- Shares Issued in Connection with Crestar Merger... -- -- -- -- -- Shares Issued in Lieu of Cash Distributions....... 2,578 2,600 -- -- -- Shares Redeemed .................................. (294,755) (185,358) -- -- -- -------- -------- -------- ---------- ---------- Net Investor Share Transactions................. 2,694 (4,446) -- -- -- -------- -------- -------- ---------- ---------- Net Change in Capital Shares.................... 29,495 28,571 60,995 67,537 243,335 -------- -------- -------- ---------- ----------
Amounts designated as "--" are either $0 or round to $0. 33 FINANCIAL HIGHLIGHTS - -------------------------------------------------------------------------------- STI CLASSIC FUNDS For the Period From Inception Through May 31, For a Share Outstanding Throughout the Period
Net Distributions Asset Value Net from Net Net Asset Beginning Investment Investment Value End of Period Income Income of Period ----------- ---------- ------------- --------- Prime Quality Money Market Fund Trust Shares 1999 $1.00 $0.05 $(0.05) $1.00 1998 1.00 0.05 (0.05) 1.00 1997 1.00 0.05 (0.05) 1.00 1996 1.00 0.05 (0.05) 1.00 1995 1.00 0.05 (0.05) 1.00 Investor Shares 1999 $1.00 $0.05 $(0.05) $1.00 1998 1.00 0.05 (0.05) 1.00 1997 1.00 0.05 (0.05) 1.00 1996 1.00 0.05 (0.05) 1.00 1995 1.00 0.05 (0.05) 1.00 Tax-Exempt Money Market Fund Trust Shares 1999 $1.00 $0.03 $(0.03) $1.00 1998 1.00 0.03 (0.03) 1.00 1997 1.00 0.03 (0.03) 1.00 1996 1.00 0.03 (0.03) 1.00 1995 1.00 0.03 (0.03) 1.00 Investor Shares 1999 $1.00 $0.03 $(0.03) $1.00 1998 1.00 0.03 (0.03) 1.00 1997 1.00 0.03 (0.03) 1.00 1996 1.00 0.03 (0.03) 1.00 1995 1.00 0.03 (0.03) 1.00 Tax-Free Money Market Fund (A) Trust Shares 1999* $1.00 $0.01 $(0.01) $1.00 For the Year Ended November 30: 1998 1.00 0.03 (0.03) 1.00 1997 1.00 0.03 (0.03) 1.00 1996 1.00 0.03 (0.03) 1.00 1995 1.00 0.03 (0.03) 1.00 1994 1.00 0.02 (0.02) 1.00 Investor Shares 1999* $1.00 $0.01 $(0.01) $1.00 For the Year Ended November 30: 1998 1.00 0.03 $(0.03) 1.00 1997 1.00 0.03 (0.03) 1.00 1996 1.00 0.03 (0.03) 1.00 1995 1.00 0.03 (0.03) 1.00 1994 1.00 0.02 (0.02) 1.00
- ---------- + Total return is for the period indicated and has not been annualized. * For the period December 1, 1998 to May 31, 1999. All ratios for the period have been annualized. (A) On May 24, 1999, the Crestar Tax-Free Money Fund exchanged all of its assets and certain liabilities for shares of the Tax-Free Money Market Fund. The Crestar Tax-Free 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. Amounts designated as "--" are either $0 or round to $0. 34 - --------------------------------------------------------------------------------
Ratio of Net Ratio of Investment Ratio of Expenses to Income to Net Average Average Ratio of Investment Net Assets Net Assets Net Assets Expenses Income to (Excluding (Excluding Total End of to Average Average Waivers) and Waivers and Return+ Period (000) Net Assets Net Assets Reimbursements) Reimbursements) ------- ------------ ---------- ---------- --------------- --------------- Prime Quality Money Market Fund Trust Shares 1999 4.83% $3,903,232 0.60% 4.69% 0.77% 4.52% 1998 5.22% 1,880,229 0.59% 5.10% 0.77% 4.92% 1997 5.01% 1,086,555 0.58% 4.90% 0.76% 4.72% 1996 5.25% 1,050,800 0.58% 5.11% 0.78% 4.91% 1995 4.79% 799,189 0.58% 4.77% 0.79% 4.56% Investor Shares 1999 4.66% $ 918,100 0.77% 4.52% 0.97% 4.32% 1998 5.04% 411,821 0.76% 4.93% 0.98% 4.71% 1997 4.84% 283,544 0.75% 4.74% 0.97% 4.52% 1996 5.08% 215,696 0.75% 4.94% 1.00% 4.69% 1995 4.62% 157,616 0.75% 4.55% 1.01% 4.29% Tax-Exempt Money Market Fund Trust Shares 1999 2.81% $ 641,640 0.52% 2.75% 0.66% 2.61% 1998 3.21% 448,023 0.51% 3.14% 0.67% 2.98% 1997 3.09% 333,006 0.50% 3.04% 0.66% 2.88% 1996 3.28% 273,613 0.50% 3.23% 0.68% 3.05% 1995 3.10% 215,413 0.45% 3.12% 0.70% 2.87% Investor Shares 1999 2.69% $ 128,854 0.64% 2.66% 0.82% 2.48% 1998 3.09% 134,538 0.62% 3.04% 0.83% 2.83% 1997 2.97% 102,013 0.62% 2.92% 0.83% 2.71% 1996 3.16% 95,223 0.62% 3.10% 0.85% 2.87% 1995 3.00% 87,647 0.55% 3.00% 0.87% 2.68% Tax-Free Money Market Fund (A) Trust Shares 1999* 1.27% $ 270,431 0.67% 2.51% 0.82% 2.36% For the Year Ended November 30: 1998 2.97% 270,899 0.66% 2.92% 0.81% 2.77% 1997 3.06% 226,837 0.66% 3.02% 0.81% 2.87% 1996 3.14% 182,320 0.66% 2.88% 0.81% 2.73% 1995 3.26% 202,333 0.66% 3.19% 0.81% 3.04% 1994 2.07% 157,602 0.67% 2.06% 0.67% 2.06% Investor Shares 1999* 1.27% $ 5,955 0.67% 2.52% 1.06% 2.13% For the Year Ended November 30: 1998 2.96% 8,851 0.67% 2.92% 1.07% 2.52% 1997 3.05% 7,634 0.68% 3.42% 1.08% 3.02% 1996 3.13% 2,994 0.67% 2.86% 1.07% 2.46% 1995 3.25% 1,627 0.67% 3.16% 1.07% 2.76% 1994 1.98% 757 0.76% 1.97% 1.44% 1.29%
The accompanying notes are an integral part of the financial statements. 35 FINANCIAL HIGHLIGHTS (concluded) - -------------------------------------------------------------------------------- STI CLASSIC FUNDS For the Period From Inception Through May 31, For a Share Outstanding Throughout the Period
Net Distributions Asset Value Net from Net Net Asset Beginning Investment Investment Value End of Period Income Income of Period ----------- ---------- ------------- --------- U.S. Government Securities Money Market Fund Trust Shares 1999 $1.00 $0.04 $(0.04) $1.00 1998 1.00 0.05 (0.05) 1.00 1997 1.00 0.05 (0.05) 1.00 1996 1.00 0.05 (0.05) 1.00 1995 1.00 0.05 (0.05) 1.00 Investor Shares 1999 $1.00 $0.04 $(0.04) $1.00 1998 1.00 0.05 (0.05) 1.00 1997 1.00 0.05 (0.05) 1.00 1996 1.00 0.05 (0.05) 1.00 1995 1.00 0.04 (0.04) 1.00 U.S. Treasury Money Market Fund (A) Trust Shares 1999** $1.00 $0.02 $(0.02) $1.00 For the Year Ended November 30: 1998 1.00 0.05 (0.05) 1.00 1997 1.00 0.05 (0.05) 1.00 1996 1.00 0.05 (0.05) 1.00 1995 1.00 0.05 (0.05) 1.00 Investor Shares(1) For the Year Ended November 30: 1999 $1.00 $0.01 $(0.01) $1.00
- ---------- (1) Ceased operations March 31, 1994. * Annualized. ** For the period December 1, 1998 to May 31, 1999. All ratios for the period have been annualized. + Total return is for the period indicated and has not been annualized. (A) On May 24, 1999, the Crestar U.S. Treasury Money Fund exchanged all of its assets and certain liabilities for shares of the U.S. Treasury Money Market Fund. The Crestar U.S. Treasury 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. Amounts designated as "--" are either $0 or round to $0. 36
Ratio of Net Ratio of Investment Ratio of Expenses to Income to Net Average Average Ratio of Investment Net Assets Net Assets Net Assets Expenses Income to (Excluding (Excluding Total End of to Average Average Waivers) and Waivers and Return+ Period (000) Net Assets Net Assets Reimbursements) Reimbursements) ------- ------------ ---------- ---------- --------------- --------------- U.S. Government Securities Money Market Fund Trust Shares 1999 4.57% $404,459 0.63% 4.47% 0.76% 4.34% 1998 5.04% 377,490 0.62% 4.92% 0.78% 4.76% 1997 4.83% 344,350 0.61% 4.73% 0.76% 4.58% 1996 5.14% 325,493 0.61% 5.02% 0.78% 4.85% 1995 4.67% 434,111 0.61% 4.64% 0.80% 4.45% Investor Shares 1999 4.41% $ 61,472 0.77% 4.32% 0.98% 4.11% 1998 4.90% 58,753 0.76% 4.79% 0.96% 4.59% 1997 4.69% 63,178 0.75% 4.59% 0.96% 4.38% 1996 4.99% 58,608 0.75% 4.88% 0.99% 4.64% 1995 4.51% 46,639 0.75% 4.51% 1.02% 4.24% U.S. Treasury Money Market Fund (A) Trust Shares 1999** 2.08% $760,833 0.68% 4.10% 0.83% 3.95% For the Year Ended November 30: 1998 4.89% 699,923 0.66% 4.77% 0.81% 4.62% 1997 4.91% 632,381 0.65% 4.82% 0.80% 4.67% 1996 4.80% 389,051 0.66% 4.69% 0.81% 4.54% 1995 5.29% 370,454 0.66% 5.16% 0.81% 5.01% Investor Shares(1) For the Year Ended November 30: 1999 0.79% $ -- 0.92% 2.31% 29.16% (25.93%)*
The Accompanying notes are an integral part of the financial statements. 37 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 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" or the "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 Retail Money Market Funds. The financial statements of the Equity Funds, the Fixed Income Funds and the Institutional Money Market Funds are not presented herein, but are 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 Trust 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 Crestar Funds in a tax-free business combination. While each Fund now exists as a 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 Funds are stated at amortized cost, which approximates market value. 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. 38 - -------------------------------------------------------------------------------- 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. 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. Transactions with Affiliates: 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 SEI Investments Mutual Funds Services ("the Administrator") are parties to an Administration Agreement dated May 29, 1995, as amended November 19, 1997 and March 1, 1999, 39 NOTES TO FINANCIAL STATEMENTS (concluded) - -------------------------------------------------------------------------------- STI CLASSIC FUNDS May 31, 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. 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 agreements, the Funds are charged the following annual fees based upon average daily net assets: Maximum Maximum Trust Investor Investor Annual Share Share Share Advisory Maximum Distribution Maximum Fee Expense Fee Expense -------- ------- ------------ -------- Prime Quality Money Market Fund .65% .60% .20% .77% Tax-Exempt Money Market Fund .55 .62 .15 .74 Tax-Free Money Market Fund .40 .51 .40 .67 U.S. Government Securities Money Market Fund .65 .63 .17 .77 U.S. Treasury Money Market Fund .65 .63 -- -- 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 Crestar Asset Management Company ("CAMCO") provided investment advisory services to the CrestFunds. CAMCO was paid for advisory services to each CrestFund money market fund at an annual rate of .40% of each CrestFund money market fund's average daily net assets for the first $500 million of net assets, .35% of each Fund's average daily net assets on the next $500 million of net assets, .30% of each money market fund's average daily net assets on all remaining net assets. 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. Investment Transactions: At May 31, 1999, the Prime Quality Money Market Fund and the Tax-Exempt Money Market Fund had capital loss carryforwards for Federal tax purposes of $314,064 and $3,830, 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 the Prime Quality Money Market Fund expires between May 2003 and May 2005 and the carryforward for the Tax-Exempt Money Market Fund expires between May 2004 and May 2007. 40 - -------------------------------------------------------------------------------- 7. CrestFunds Merger: The Board of Directors and shareholders of the CrestFunds approved a reorganization of the CrestFunds into the STI Classic Funds which was effective on May 17, 1999 for the Prime Quality Money Market Fund and May 24, 1999 for the Tax-Free Money Market Fund and U.S. Treasury Money Market Fund. The following table summarizes certain relevant information of the Funds prior to and immediately after 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 Crest Fund Date STI Classic Fund Combination Combination Share ---------- ------------- ------------------------------ ------------- ------------- ----- Cash Reserve Prime Quality Money Market (2) Trust Shares 1,179,840,320 Trust Shares 1,179,992,513 3,898,000,842 $1.00 Investor Class A 187,019,982 Investor Shares 187,134,402 897,327,829 1.00 Investors Class B (1) 68,609 Flex Shares n/a n/a n/a U.S. Treasury Money Fund (2) U.S. Treasury Money Market Trust Shares 278,919,943 Trust Shares 278,919,943 278,898,164 1.00 Investor Class A 5,967,857 Investor Shares 5,967,857 5,968,442 1.00 Tax Free Money Fund (2) Tax-Free Money Market Trust Shares 732,825,211 Trust Shares 732,825,211 732,779,926 1.00
(1) Investors Class B Shares of the CrestFunds Cash Reserve Fund were exchanged for Investors Shares of the STI Classic Prime Quality Money Market Fund. (2) Represents the accounting survivor in this business combination. 8. Concentration of Credit Risk: The Prime Quality Money Market Fund invests primarily in high quality money market instruments rated in the highest short-term rating category by Standard & Poor's Ratings Group ("S&P") or Moody's Investors Services, Inc. (Moody's) or, if not rated, are determined by the Investment Advisor to be of comparable quality. The Tax-Exempt Money Market and Tax-Free Money Market Funds invest in high quality, U.S. dollar denominated municipal securities rated in one of the two highest short-term rating categories or, if not rated, are determined by the Investment Advisor to be of comparable quality. The U.S. Government Securities Money Market and U.S. Treasury Money Market Funds invest exclusively in U.S. Treasury obligations, U.S. Government subsidiary corporation securities which are backed by the full faith and credit of the U.S. Government and repurchase agreements with approved dealers collateralized by U.S. Treasury securities and U.S. Government subsidiary corporation securities. 41 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 Prime Quality Money Market, Tax-Exempt Money Market, Tax-Free Money Market, U.S. Government Securities Money Market, and U.S. Treasury 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 November 30, 1998, statements of changes for the years ended November 30, 1998 and November 30, 1997, and financial highlights for the periods presented prior to May 31, 1999, for the Tax-Free Money Market and U.S. Treasury Money Market Funds 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 referred to above present fairly, in all material respects, the financial position of the Prime Quality Money Market, Tax-Exempt Money Market, Tax-Free Money Market, U.S. Government Securities Money Market, and U.S. Treasury 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 42 NOTICE TO SHAREHOLDERS - -------------------------------------------------------------------------------- STI CLASSIC FUNDS May 31, 1999 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 (20% Rate) Ordinary Capital Gains Income Tax-Exempt Total Qualifying Fund Distributions Distributions Interest Distributions Dividends (1) ---- ------------- ------------- ---------- ------------- ------------- Prime Quality Money Market Fund 0.00% 100.00% 0.00% 100.00% 0.00% Tax-Exempt Money Market Fund 0.00% 0.02% 99.98% 100.00% 0.00% Tax Free-Money Market Fund 0.00% 0.00% 100.00% 100.00% 0.00% U.S. Government Securities Money Market Fund 0.00% 100.00% 0.00% 100.00% 0.00% U.S. Treasury Money Market Fund 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 "Ordinary Income Distribution". 43 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-----