-----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, QkFBndYwvT4y7DwIGyVoIXGNUEPNAkczGJ7mXWQuWm/lkb3MX+k4g2s9nEnx1zTx aHDStcKZRIK8zRbaScaQzg== 0000935069-99-000174.txt : 19990831 0000935069-99-000174.hdr.sgml : 19990831 ACCESSION NUMBER: 0000935069-99-000174 CONFORMED SUBMISSION TYPE: N-30D PUBLIC DOCUMENT COUNT: 1 CONFORMED PERIOD OF REPORT: 19990630 FILED AS OF DATE: 19990830 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: 99702676 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 SEMI-ANNUAL REPORT SEMI-ANNUAL FINANCIAL REPORT STI CLASSIC VARIABLE TRUST JUNE 30, 1999 (LOGO) [GRAPHIC OMITTED] Dear STI Classic Variable Trust Shareholders: The following 1999 Semi-Annual Financial Report provides you a detailed summary of each of the STI Classic Variable Trust Funds. The STI Classic Funds and the STI Classic Variable Trust Funds have presented investors exposure to a variety of investment opportunities since 1992. The six STI Classic Variable Trust Funds were developed specifically to meet the rapidly changing needs of today's investor. Each of these funds offers an investment discipline that identifies a specific mix of risk and return. Together, the STI Classic Variable Trust Funds complement one another, providing access to different segments of the stock and bond markets. The combination of these funds is intended to offer the ideal investment program for almost any investor. The financial statements presented herein relate only to the Value Income Stock Fund, Capital Appreciation Fund, and International Equity Fund.
STI CLASSIC VARIABLE TRUST FUNDS (UNAUDITED) NET OF FEES PERFORMANCE AS OF JUNE 30, 1999 THREE SINCE INCEPTION INCEPTION MONTHS ONE YEAR THREE YEARS (ANNUALIZED) DATE - ----------------------------------------------------------------------------------------------------------------------------- STI CLASSIC VARIABLE TRUST VALUE INCOME STOCK FUND 14.48% 15.24% 19.71% 20.41% 10/2/95 - ----------------------------------------------------------------------------------------------------------------------------- STI CLASSIC VARIABLE TRUST CAPITAL APPRECIATION FUND 8.56% 19.40% 29.32% 28.83% 10/2/95 - ----------------------------------------------------------------------------------------------------------------------------- STI CLASSIC VARIABLE TRUST INTERNATIONAL EQUITY FUND 2.68% (1.50%) N/A 12.05% 11/7/96 - ----------------------------------------------------------------------------------------------------------------------------- PAST PERFORMANCE IS NOT A GUARANTEE OF FUTURE RETURNS.
The STI Classic Variable Trust is a well-established family of mutual funds, nationally recognized for the diversity and quality of investment options that they provide. As the advisor to the STI Classic Variable Trust, STI Capital Management is committed to providing you quality investment products which will aid you in achieving your investment objectives. I hope you will find the information on the following pages useful. It is intended to give you a better understanding of how our portfolio managers are investing your money. Thank you for your interest and participation in the STI Classic Variable Trust. We look forward to many successful years of investing in the future. Sincerely, /s/ [SIGNATURE] Anthony R. Gray Chief Executive Officer and Chief Investment Officer STI Capital Management, N.A. 1 STATEMENT OF NET ASSETS - ------------------------------------------------------------------ STI CLASSIC VARIABLE TRUST FUNDS JUNE 30, 1999 VALUE INCOME STOCK FUND - ------------------------------------------------------------------ SHARES VALUE (000) - ------------------------------------------------------------------ COMMON STOCKS (89.0%) BASIC MATERIALS (10.9%) Allegheny Teledyne 64,800 $ 1,466 B.F. Goodrich 35,700 1,517 Boise Cascade 35,200 1,509 Consolidated Papers 26,300 703 Du Pont (EI) de Nemours 16,600 1,134 Engelhard 42,300 957 Hercules 30,000 1,179 Minnesota Mining & Manufacturing 13,400 1,165 Reynolds Metals 17,200 1,015 Sonoco Products 42,630 1,276 Worthington Industries 38,800 638 -------- 12,559 -------- CAPITAL GOODS (12.6%) Cooper Industries 35,700 1,856 Corning 8,600 603 Crown Cork & Seal 22,400 638 Dana 19,000 875 Emerson Electric 24,400 1,534 Harris 23,900 937 Hubbell, Cl B 22,500 1,021 National Service Industries 32,500 1,170 Northrop Grumman 26,000 1,724 Pall 48,800 1,083 Raytheon, Cl B 11,400 802 Tenneco 36,700 876 Thomas & Betts 31,600 1,493 -------- 14,612 -------- COMMUNICATION SERVICES (3.5%) Alltel 11,400 815 GTE 43,200 3,272 -------- 4,087 -------- CONSUMER CYCLICALS (11.1%) Albertson's 33,000 1,702 American Greetings, Cl A 29,100 877 Genuine Parts 34,300 1,200 H&R Block 36,400 1,820 J.C. Penney 43,000 2,088 Masco 58,900 1,701 Ryder 33,100 861 Stanley Works 37,100 1,194 TRW 25,800 1,416 -------- 12,859 -------- - ------------------------------------------------------------------ SHARES VALUE (000) - ------------------------------------------------------------------ CONSUMER STAPLES (12.3%) Bestfoods 33,900 $ 1,678 ConAgra 84,800 2,258 Dean Foods 28,600 1,189 Flowers Industries 13,100 284 Fortune Brands 29,800 1,233 H.J. Heinz 23,300 1,168 International Flavors & Fragrances 38,100 1,691 Kimberly Clark 35,500 2,023 McCormick 26,400 833 Newell Rubbermaid 25,300 1,176 Wallace Computer Services 28,900 722 -------- 14,255 -------- ENERGY (6.7%) Atlantic Richfield 15,700 1,312 Baker Hughes 27,500 921 Fort James 21,800 826 Kerr-McGee 17,100 858 Murphy Oil 19,100 932 Texaco 26,500 1,657 Unocal 31,600 1,252 -------- 7,758 -------- FINANCE (16.4%) Allstate 33,500 1,202 American Financial Group 22,800 777 American General 14,700 1,108 Bank of America 35,700 2,617 Bank One 39,900 2,377 BankBoston 31,100 1,590 Cigna 17,400 1,549 First American of Tennessee 20,400 848 Hibernia, Cl A 47,900 751 KeyCorp 41,200 1,324 Paine Webber Group 15,800 739 PNC Bank 26,200 1,510 Summit Bancorp 27,000 1,129 Torchmark 19,100 652 Union Planters 18,636 833 -------- 19,006 -------- HEALTH CARE (9.0%) Abbott Laboratories 52,300 2,380 American Home Products 53,100 3,053 Baxter International 44,600 2,704 THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS. 2 - ------------------------------------------------------------------ UNAUDITED - ------------------------------------------------------------------ SHARES/FACE AMOUNT (000) VALUE (000) - ------------------------------------------------------------------ HEALTH CARE (CONTINUED) Bristol-Myers Squibb 16,300 $ 1,148 Pharmacia Upjohn ADR 20,100 1,142 -------- 10,427 -------- TECHNOLOGY (3.5%) EG&G 39,300 1,400 Xerox 44,100 2,605 -------- 4,005 -------- UTILITIES (3.0%) Consolidated Natural Gas 11,500 699 GPU 20,700 873 Questar 47,500 908 Scana 41,200 963 -------- 3,443 -------- Total Common Stocks (Cost $93,410) 103,011 -------- REPURCHASE AGREEMENT (10.6%) Morgan Stanley 4.850%, dated 06/30/99, matures 07/01/99, repurchase price $12,225,286 (collateralized by U.S. Agency Obligations: market value $12,485,692) (A) $12,224 12,224 -------- Total Repurchase Agreement (Cost $12,224) 12,224 -------- Total Investments (99.6%) (Cost $105,634) 115,235 -------- OTHER ASSETS AND LIABILITIES, NET (0.4%) 427 -------- - ------------------------------------------------------------------ VALUE (000) - ------------------------------------------------------------------ NET ASSETS: Portfolio Shares (unlimited authorization -- no par value) based on 6,858,477 outstanding shares of beneficial interest $ 92,270 Accumulated net realized gain on investments 13,606 Net unrealized appreciation on investments 9,601 Undistributed net investment income 185 -------- Total Net Assets (100.0%) $115,662 ======== Net Asset Value, Offering and Redemption Price Per Share $16.87 ======== ADR -- AMERICAN DEPOSITORY RECEIPT CL -- CLASS (A) TRI-PARTY REPURCHASE AGREEMENT THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS 3 STATEMENT OF NET ASSETS - ------------------------------------------------------------------ STI CLASSIC VARIABLE TRUST FUNDS JUNE 30, 1999 CAPITAL APPRECIATION FUND - ------------------------------------------------------------------ SHARES - ------------------------------------------------------------------ COMMON STOCKS (93.4%) BASIC MATERIALS (1.7%) Air Products & Chemicals 48,700 $ 1,960 Ecolab 2,200 96 Rohm & Haas 4,757 204 -------- 2,260 -------- CAPITAL GOODS (12.2%) Allied Waste Industries* 23,600 466 Browning Ferris Industries 2,200 95 General Electric 45,200 5,108 Honeywell 11,200 1,298 Lockheed Martin 5,900 220 Republic Services, Cl A* 23,400 579 Textron 12,400 1,021 Tyco International 31,040 2,941 United Technologies 27,700 1,986 Waste Management Inc* 44,369 2,385 -------- 16,099 -------- COMMUNICATION SERVICES (3.5%) AT&T 15,549 868 Centurytel 27,300 1,085 Fox Entertainment Group, Cl A* 11,000 296 GTE 11,200 848 MCI WorldCom* 12,112 1,042 Nokia, Cl A ADR 4,400 403 Vodafone ADR 750 148 -------- 4,690 -------- CONSUMER CYCLICALS (18.1%) Albertson's 10,065 519 Automatic Data Processing 7,800 343 Carnival 35,600 1,727 Costco* 27,300 2,186 CVS 36,200 1,837 Dayton Hudson 10,100 656 Eastman Kodak 1,800 122 Federated Department Stores* 6,300 334 Gannett 20,400 1,456 Hasbro 31,400 877 Home Depot 1,900 122 Interpublic Group 1,400 121 Lear* 15,700 781 Lowe's Companies 50,400 2,857 - ------------------------------------------------------------------ SHARES VALUE (000) - ------------------------------------------------------------------ CONSUMER CYCLICALS (CONTINUED) Masco 60,700 $ 1,753 Mattel 34,300 907 Maytag 5,600 390 McGraw-Hill 17,800 960 New York Times, Cl A 11,500 423 Office Depot* 82,100 1,811 Promus Hotel* 6,600 205 Saks* 28,500 823 SPX* 3,700 309 Starwood Hotels and Resorts 12,800 391 Tandy 41,300 2,019 Young & Rubicam 600 27 -------- 23,956 -------- CONSUMER STAPLES (12.4%) Anheuser Busch 5,100 362 Avon Products 10,900 605 Cendant* 62,206 1,275 Clorox 7,400 790 Coca-Cola 23,200 690 ConAgra 22,201 591 Flowers Industries 12,100 262 Fort James 8,000 303 Gillette 1,600 66 Kroger* 60,700 1,696 McDonald's 8,900 368 Nabisco Group Holdings 34,700 679 Pepsi Bottling Group* 21,800 503 PepsiCo 24,600 952 Philip Morris 6,000 241 Procter & Gamble 6,000 535 Ralston Purina 24,300 740 Rite Aid 45,700 1,125 Safeway* 19,400 960 Sara Lee 38,400 871 Seagram 4,800 242 Suiza Foods* 3,000 126 Unilever NV 882 62 US Foodservice* 20,600 878 United Rentals* 23,300 687 Viacom, Cl B* 18,200 801 -------- 16,410 -------- 4 - ------------------------------------------------------------------ UNAUDITED - ------------------------------------------------------------------ SHARES VALUE (000) - ------------------------------------------------------------------ ENERGY (3.1%) Anadarko Petroleum 8,600 $ 317 Atlantic Richfield 6,700 560 Halliburton 1,800 81 Mobil 5,700 564 Niagara Mohawk Holdings* 7,500 120 Texaco 31,000 1,937 Union Pacific Resources Group 1,201 20 Unocal 12,700 503 -------- 4,102 -------- FINANCE (11.5%) Ace 20,100 568 Allstate 10,000 359 American International Group 11,103 1,300 Associates First Capital 13,600 603 Bank of America 16,042 1,176 Bank of New York 11,300 415 Bank One 13,860 825 Bank United, Cl A 7,300 293 BankBoston 12,800 654 Citigroup 4,500 214 Compass Bancshares 18,150 495 Conseco 26,300 801 FHLMC 8,400 487 First American of Tennessee 3,400 141 First Security 15,600 425 Household International 19,866 941 Mellon Bank 39,400 1,433 Morgan Stanley 1,700 174 North Fork Bancorporation 13,300 283 PNC Bank 13,500 778 Providian Financial 1,600 150 Radian Group 2,100 103 Torchmark 23,500 802 U.S. Bancorp 14,900 507 Unum 9,400 515 Washington Mutual 24,368 862 Wells Fargo 1,200 52 -------- 15,356 -------- HEALTH CARE (11.3%) Abbott Laboratories 27,200 1,238 Alza* 15,200 773 - ------------------------------------------------------------------ SHARES VALUE (000) - ------------------------------------------------------------------ HEALTH CARE (CONTINUED) American Home Products 15,400 $ 885 Baxter International 20,600 1,249 Becton Dickinson 13,100 393 Bristol-Myers Squibb 24,300 1,712 Cardinal Health 16,633 1,067 Eli Lilly 11,400 816 Forest Laboratories* 11,600 536 Health Management Associates, Cl A* 11,800 133 Healthsouth* 30,302 453 Medtronic 4,904 382 Merck 32,400 2,398 Schering Plough 8,300 440 Tenet Healthcare* 24,800 460 Warner Lambert 27,200 1,887 Watson Pharmaceuticals* 3,900 137 -------- 14,959 -------- TECHNOLOGY (18.8%) ADC Telecommunications* 15,500 706 3Com* 5,500 147 Amgen* 4,500 274 Analog Devices* 12,200 612 BMC Software* 2,400 130 Ceridian* 44,200 1,445 Cisco Systems* 43,800 2,822 Compaq Computer 3,824 92 Computer Sciences* 3,900 270 Comverse Technology* 1,400 106 EMC* 25,600 1,408 Hewlett Packard 14,200 1,427 IBM 35,400 4,575 Intel 15,700 934 Lucent Technologies 18,810 1,268 Microsoft* 36,700 3,310 Networks Associates* 19,208 282 Nortel Networks 10,200 885 Raytheon, Cl B 2,800 197 Sun Microsystems* 21,800 1,501 Texas Instruments 7,400 1,073 Xerox 23,200 1,370 -------- 24,834 -------- 5 STATEMENT OF NET ASSETS/SCHEDULE OF INVESTMENTS - ------------------------------------------------------------------ STI CLASSIC VARIABLE TRUST FUNDS JUNE 30, 1999 CAPITAL APPRECIATION FUND--CONCLUDED - ------------------------------------------------------------------ SHARES/FACE AMOUNT (000) VALUE (000) - ------------------------------------------------------------------ TRANSPORTATION (0.7%) AMR* 1,700 $ 116 Burlington Northern Santa Fe 11,100 344 Delta Air Lines 6,200 357 Trans World Air* 2,400 81 -------- 898 -------- UTILITIES (0.1%) Consolidated Natural Gas 1,800 109 -------- Total Common Stocks (Cost $97,103) 123,673 -------- PREFERRED STOCKS (0.2%) CONSUMER CYCLICALS (0.2%) Comcast, CV to 1.425 Shares 3,300 285 -------- Total Preferred Stocks (Cost $272) 285 -------- REPURCHASE AGREEMENT (5.2%) Morgan Stanley 4.850%, dated 06/30/99, matures 07/01/99, repurchase price $6,897,756 (collateralized by U.S. Agency Obligations: market value $7,044,804) (A) $6,897 6,897 -------- Total Repurchase Agreement (Cost $6,897) 6,897 -------- Total Investments (98.8%) (Cost $104,272) 130,855 -------- OTHER ASSETS AND LIABILITIES, NET (1.2%) 1,525 -------- - ------------------------------------------------------------------ VALUE (000) - ------------------------------------------------------------------ NET ASSETS: Portfolio Shares (unlimited authorization -- no par value) based on 5,983,298 outstanding shares of beneficial interest $ 93,502 Accumulated net realized gain on investments 12,235 Net unrealized appreciation on investments 26,583 Undistributed net investment income 60 -------- otal Net Assets (100.0%) $132,380 ======== Net Asset Value, Offering and Redemption Price Per Share $22.13 ======== * NON-INCOME PRODUCING SECURITY ADR -- AMERICAN DEPOSITORY RECEIPT CL -- CLASS CV-- CONVERTIBLE SECURITY FHLMC -- FEDERAL HOME LOAN MORTGAGE CORPORATION (A) TRI-PARTY REPURCHASE AGREEMENT THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS. 6 - ------------------------------------------------------------------ UNAUDITED INTERNATIONAL EQUITY FUND - ------------------------------------------------------------------ SHARES VALUE (000) - ------------------------------------------------------------------ FOREIGN COMMON STOCKS (93.3%) AUSTRALIA (2.6%) Broken Hill Proprietary 10,461 $ 122 Leighton Holdings 39,600 156 National Australia Bank 12,100 202 ------- 480 ------- AUSTRIA (1.0%) Erste Bank* 3,200 183 ------- BRAZIL (0.9%) Tele Norte Leste Participacoes ADR 9,100 169 ------- CANADA (3.3%) Nortel Networks 4,480 386 Teleglobe 7,900 235 ------- 621 ------- DENMARK (0.8%) Novo-Nordisk, Cl B 1,370 148 ------- FINLAND (3.9%) Merita 37,400 213 Nokia ADR, Cl A 1,700 156 Nokia Oyj 1,500 132 Sonera Group Oyj 10,900 239 ------- 740 ------- FRANCE (13.4%) Accor 620 156 Assurances Generales de France 3,200 155 Axa 1,635 200 Dexia France 1,490 200 Elf Aquitane 1,300 191 Equant* 1,775 164 Lafarge 1,945 185 Michelin, Cl B 2,850 117 SEITA 1,235 71 Suez Lyonnaise des Eaux 1,350 244 Technip 2,640 297 Valeo* 1,500 124 Vivendi 5,194 422 ------- 2,526 ------- GERMANY (6.8%) DaimlerChrysler 2,600 226 Mannesmann 2,820 422 Metallgesellschaft 11,450 211 Preussag 4,210 227 Siemens 2,500 193 ------- 1,279 ------- - ------------------------------------------------------------------ SHARES VALUE (000) - ------------------------------------------------------------------ GREECE (2.6%) Hellenic Telecom Organization 11,280 $ 243 Panafon Hellenic Telecom* 10,300 249 ------- 492 ------- HONG KONG (0.9%) HongKong Electric Holdings 52,000 168 ------- INDONESIA (0.1%) Modern Photo Film, F* 60,000 22 ------- IRELAND (2.2%) Bank of Ireland 24,288 408 ------- ISRAEL (2.0%) Comverse Technology 2,000 151 ECI Telecommunications 6,570 218 ------- 369 ------- ITALY (2.8%) Banca Nazionale del Lavoro* 41,250 130 ENI 30,800 184 San Paolo-IMI 12,370 169 Tecnost* 14,880 37 ------- 520 ------- JAPAN (9.7%) Bank of Tokyo Mitsubishi 10,500 149 Eisai 4,400 87 FamilyMart 2,000 92 Honda Motor 4,000 169 Nippon Telegraph & Telephone 3 35 NTT Mobile Communications Network-New* 24 321 NTT Mobile Communications Network 6 81 Olympus Optical 13,000 192 Promise 2,700 159 Sumitomo Bank 10,200 126 Takefuji 2,300 237 TDK 1,300 119 Terumo 2,300 51 ------- 1,818 ------- MEXICO (3.1%) Fomento Economico Mexicano ADR 5,600 223 Grupo Televisa GDR* 2,100 94 Telefonos de Mexico ADR 3,300 267 ------- 584 ------- 7 SCHEDULE OF INVESTMENTS - ------------------------------------------------------------------ STI CLASSIC VARIABLE TRUST FUNDS JUNE 30, 1999 UNAUDITED INTERNATIONAL EQUITY FUND--CONCLUDED - ------------------------------------------------------------------ SHARES VALUE (000) - ------------------------------------------------------------------ NETHERLANDS (10.2%) Ahold 5,500 $ 190 ASM Lithography Holding* 3,900 226 ING Groep 4,763 259 KPN 8,027 378 Philips Electronics 3,760 372 TNT Post Group 8,763 210 Unique International 6,623 162 Wolters Kluwer 2,950 118 ------- 1,915 ------- NEW ZEALAND (2.0%) Fernz 30,700 90 Fletcher Challenge Building 55,038 81 Telecom of New Zealand 46,050 199 ------- 370 ------- NORWAY (1.0%) Petroleum Geo Services ADR* 1,400 21 Petroleum Geo Services* 10,800 163 ------- 184 ------- PANAMA (0.7%) Banco Latinamericano de Exportaciones 4,600 123 ------- PORTUGAL (0.9%) BPI-SGPS* 3,188 67 Portugal Telecom ADR 2,400 99 ------- 166 ------- SINGAPORE (1.0%) Overseas Chinese Banking 23,000 192 ------- SOUTH KOREA (0.6%) Korea Electric Power ADR 5,400 111 ------- SPAIN (2.8%) Argentaria 12,000 274 Telefonica Bonus Rights* 4,000 4 Telefonica de Espana 5,300 256 ------- 534 ------- SWEDEN (2.0%) Castellum 12,300 117 Electrolux 7,000 148 Swedish Match 32,800 118 ------- 383 ------- - ------------------------------------------------------------------ SHARES/FACE AMOUNT (000) VALUE (000) - ------------------------------------------------------------------ SWITZERLAND (1.1%) Compagnie Financiere Richemont 60 $ 116 Novartis, Registered 60 88 ------- 204 ------- UNITED KINGDOM (12.7%) Allied Zurich 15,550 196 AstraZeneca Group 4,050 157 Bass 7,460 108 British Energy PLC 22,500 192 COLT Telecom Group* 12,600 264 Diageo 18,832 197 Glaxo Wellcome 4,100 114 Granada Group* 7,000 130 Lloyds TSB Group 14,318 194 National Westminster Bank 7,003 148 Railtrack Group 7,800 159 Securicor 23,300 204 SmithKline Beecham 14,640 190 South African Breweries* 16,465 141 ------- 2,394 ------- UNITED STATES (2.2%) Global TeleSystems Group* 5,046 409 ------- Total Foreign Common Stocks (Cost $16,090) 17,512 ------- CORPORATE FOREIGN BONDS (0.1%) Tecnost (A) 4.487%, 06/23/04 EU 24 26 ------- Total Corporate Foreign Bonds (Cost $19) 26 ------- Total Investments (93.4%) (Cost $16,109) $17,538 ======= * NON-INCOME PRODUCING SECURITY ADR -- AMERICAN DEPOSITORY RECEIPT CL -- CLASS EU -- EURO F -- FOREIGN GDR -- GLOBAL DEPOSITORY RECEIPT PLC -- PUBLIC LIMITED CORPORATION (A)VARIABLE RATE SECURITY. THE RATE REPORTED ON THE STATEMENT OF NET ASSETS IS THE RATE IN EFFECT ON JUNE 30, 1999. THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS. 8
STATEMENT OF ASSETS AND LIABILITIES (000) - ------------------------------------------------------------------------------------------------------------ STI CLASSIC VARIABLE TRUST FUNDS JUNE 30, 1999 UNAUDITED ------------- INTERNATIONAL EQUITY FUND ------------- Assets: Investments at Market Value (Cost $16,109) ................................................. $17,538 Cash and Foreign Currency .................................................................. 632 Receivables for Investment Securities Sold ................................................. 735 Receivables for Portfolio Shares Purchased ................................................. 7 Other Assets ............................................................................... 71 ------- Total Assets ............................................................................... 18,983 ------- Liabilities: Payables for Investment Securities Purchased ............................................... 159 Accrued Expenses ........................................................................... 44 Other Liabilities .......................................................................... 5 ------- Total Liabilities .......................................................................... 208 ------- Net Assets: Portfolio Shares (unlimited authorization -- no par value) based on 1,401,783 outstanding shares of beneficial interest ............................. 16,394 Accumulated net realized gain on investments ............................................... 787 Net unrealized depreciation on forward foreign currency contracts, foreign currency, and translation of other assets and liabilities in foreign currency ............ (2) Net unrealized appreciation on investments ................................................. 1,429 Undistributed net investment income ........................................................ 167 ------- Total Net Assets ........................................................................... $18,775 ======= Net Asset Value, Offering and Redemption Price Per Share ...................................... $ 13.39 =======
STATEMENT OF OPERATIONS (000) - --------------------------------------------------------------------------------------------------------------------------- STI CLASSIC VARIABLE TRUST FUNDS FOR THE SIX MONTH PERIOD ENDED JUNE 30, 1999 UNAUDITED VALUE INCOME CAPITAL INTERNATIONAL STOCK APPRECIATION EQUITY FUND FUND FUND ----------- ------------ ------------- Investment Income: Interest Income ................................... $ 253 $ 206 $ 11 Dividend Income ................................... 1,259 551 240 Less: Foreign Taxes Withheld ...................... -- -- (15) ------- ------- ----- Total Investment Income 1,512 757 236 ------- ------- ----- Expenses: Investment Advisory Fees .......................... 413 660 115 Less: Investment Advisory Fees Waived ............. (3) (108) (48) Administrator Fees ................................ 31 31 37 Custody Fees ...................................... 13 20 20 Transfer Agent Fees ............................... 12 15 3 Professional Fees ................................. 12 24 6 Trustee Fees ...................................... 2 3 -- Registration Fees ................................. -- -- 4 Printing Expenses ................................. 6 13 2 Pricing Fees ...................................... 2 1 6 Insurance and Other Fees .......................... 2 -- 1 Amortization of Deferred Organization Costs ....... 1 1 2 ------- ------- ----- Total Expenses ................................ 491 660 148 ------- ------- ----- Net Investment Income (Loss) ................ 1,021 97 88 ------- ------- ----- Net Realized Gain (Loss) on Securities Sold ....... 5,104 4,662 517 Net Realized Loss on Foreign Currency Transactions -- -- (13) Net Unrealized Appreciation (Depreciation) on Investments .................. 6,947 7,360 (99) Net Unrealized Depreciation on Forward Currency Contracts, Foreign Currency, and Translation of Other Assets and Liabilities in Foreign Currency ............. -- -- (4) ------- ------- ----- Net Realized and Unrealized Gain (Loss) on Investments and Foreign Currency ...... 12,051 12,022 401 ------- ------- ----- Increase (Decrease) in Net Assets from Operations ... $13,072 $12,119 $ 489 ======= ======= ===== Amounts designated as "--" are either $0 or have been rounded to $0. THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.
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STATEMENT OF CHANGES IN NET ASSETS (000) - --------------------------------------------------------------------------------------------------------------------------- STI CLASSIC VARIABLE TRUST FUNDS UNAUDITED VALUE INCOME CAPITAL APPRECIATION INTERNATIONAL STOCK FUND FUND EQUITY FUND ----------------------- --------------------- ---------------------- 01/01/99- 01/01/98- 01/01/99- 01/01/98- 01/01/99- 01/01/98- 06/30/99 12/31/98 06/30/99 12/31/98 06/30/99 12/31/98 -------- -------- -------- -------- -------- -------- Investment Activities: Net Investment Income (Loss) ...................... $ 1,021 $ 1,696 $ 97 $ 356 $ 88 $ 108 Net Realized Gain (Loss) on Investments and Foreign Currency Transactions ............... 5,104 8,551 4,662 7,815 504 255 Net Unrealized Appreciation (Depreciation) on Investments .................................. 6,947 (2,853) 7,360 12,917 (99) 1,029 Net Unrealized Appreciation (Depreciation) on Forward Foreign Currency Contracts, Foreign Currency, and Translation of Other Assets and Liabilities in Foreign Currency ...... -- -- -- -- (4) 2 -------- ------- -------- -------- ------- ------- Increase (Decrease) in Net Assets Resulting from Operations ................................. 13,072 7,394 12,119 21,088 489 1,394 -------- ------- -------- -------- ------- ------- Distributions to Shareholders: Net Investment Income ............................. (1,061) (1,696) (97) (356) -- (21) Capital Gains ..................................... -- (6,777) -- (8,084) -- (113) -------- ------- -------- -------- ------- ------- Total Distributions ............................... (1,061) (8,473) (97) (8,440) -- (134) -------- ------- -------- -------- ------- ------- Capital Transactions: Proceeds from Shares Issued ....................... 6,315 23,136 16,434 26,149 1,382 5,290 Reinvestment of Cash Distributions ................ 1,061 8,473 97 8,440 -- 134 Cost of Shares Repurchased ........................ (2,484) (4,518) (1,733) (3,554) (2,022) (1,605) -------- ------- -------- -------- ------- ------- Increase (Decrease) in Net Assets from Capital Transactions ............................ 4,892 27,091 14,798 31,035 (640) 3,819 -------- ------- -------- -------- ------- ------- Total Increase (Decrease) in Net Assets ........... 16,903 26,012 26,820 43,683 (151) 5,079 -------- ------- -------- -------- ------- ------- Net Assets: Beginning of Period ............................... 98,759 72,747 105,560 61,877 18,926 13,847 -------- ------- -------- -------- ------- ------- End of Period ..................................... $115,662 $98,759 $132,380 $105,560 $18,775 $18,926 ======== ======= ======== ======== ======= ======= Shares Issued and Redeemed: Shares Issued ..................................... 404 1,451 797 1,374 105 406 Shares Issued in Lieu of Cash Distributions ....... 67 622 5 510 -- 11 Shares Redeemed ................................... (161) (307) (85) (200) (153) (134) -------- ------- -------- -------- ------- ------- Net Share Transactions ............................ 310 1,766 717 1,684 (48) 283 ======== ======= ======== ======== ======= ======= Amounts designated as "--" are either $0 or have been rounded to $0. THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.
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FINANCIAL HIGHLIGHTS - ------------------------------------------------------------------------------------------------------------------------------------ STI CLASSIC VARIABLE TRUST FUNDS FOR THE PERIODS FROM INCEPTION THROUGH JUNE 30, 1999 FOR A SHARE OUTSTANDING THROUGHOUT THE PERIOD NET NET REALIZED AND NET ASSET VALUE INVESTMENT UNREALIZED GAINS (LOSSES) DISTRIBUTIONS FROM DISTRIBUTIONS FROM BEGINNING OF PERIOD INCOME (LOSS) ON INVESTMENTS NET INVESTMENT INCOME REALIZED CAPITAL GAINS ------------------- ------------- ------------------------- --------------------- ---------------------- VALUE INCOME STOCK FUND 1999 $15.08 $ 0.15 $ 1.80 $(0.16) $ -- 1998 15.21 0.27 1.02 (0.28) (1.14) 1997 12.41 0.28 3.02 (0.28) (0.22) 1996 10.67 0.23 1.74 (0.23) -- 1995 (1) 10.00 0.06 0.67 (0.06) -- CAPITAL APPRECIATION FUND (A) 1999 $20.04 $ 0.02 $ 2.09 $(0.02) $ -- 1998 17.27 0.07 4.54 (0.08) (1.76) 1997 13.06 0.10 4.63 (0.10) (0.42) 1996 10.66 0.12 2.40 (0.12) -- 1995 (1) 10.00 0.04 0.66 (0.04) -- INTERNATIONAL EQUITY FUND 1999 $13.05 $ 0.06 $ 0.28 $ -- $ -- 1998 11.87 0.10 1.17 (0.01) (0.08) 1997 10.16 0.03 1.68 -- -- 1996 (2) 10.00 0.01 0.16 (0.01) --
RATIO OF RATIO OF EXPENSES TO NET ASSETS NET ASSETS RATIO OF NET INVESTMENT AVERAGE NET ASSETS VALUE END TOTAL END OF EXPENSES TO INCOME (LOSS) TO (EXCLUDING WAIVERS OF PERIOD RETURN PERIOD (000) AVERAGE NET ASSETS AVERAGE NET ASSETS AND REIMBURSEMENTS) --------- ------ ------------ ------------------ ------------------ ------------------- VALUE INCOME STOCK FUND 1999 $16.87 12.99% $115,662 0.95% 1.98% 0.96% 1998 15.08 9.69 98,759 0.95 1.90 1.11 1997 15.21 26.82 72,747 0.95 2.09 1.23 1996 12.41 18.64 31,216 0.95 2.45 1.95 1995 (1) 10.67 7.31 4,015 0.95 2.98 5.72 CAPITAL APPRECIATION FUND (A) 1999 $22.13 10.52% $132,380 1.15% 0.17% 1.34% 1998 20.04 28.97 105,560 1.15 0.43 1.41 1997 17.27 36.54 61,877 1.15 0.70 1.60 1996 13.06 23.75 25,189 1.15 1.15 2.43 1995 (1) 10.66 6.96 3,778 1.15 1.69 6.18 INTERNATIONAL EQUITY FUND 1999 $13.39 2.61% $ 18,775 1.60% 0.96% 2.12% 1998 13.05 10.80 18,926 1.60 0.63 2.07 1997 11.87 16.84 13,847 1.60 0.41 2.93 1996 (2) 10.16 1.70 995 1.60 1.83 31.39
Ratio of Net Investment Income (Loss) to Average Net Assets Portfolio Net(Excluding Waivers Turnover Beginand Reimbursements) Rate ------------------------ ---------- VALUE INCOME STOCK FUND 1999 1.97% 40.82% 1998 1.74 76.36 1997 1.81 104.84 1996 1.45 79.80 1995 (1) (1.79) 7.17 CAPITAL APPRECIATION FUND (A) 1999 (0.02)% 77.60% 1998 0.17 219.17 1997 0.25 195.86 1996 (0.13) 148.48 1995 (1) (3.34) 8.05 INTERNATIONAL EQUITY FUND 1999 0.44% 106.24% 1998 0.16 128.93 1997 (0.92) 99.14 1996 (2) (27.96) -- (1) Commenced operations on October 2, 1995. All ratios for the period have been annualized. (2) Commenced operations on November 7, 1996. All ratios for the period have been annualized. + Returns are for the period indicated and have not been annualized. (A) During the period ended June 30, 1999, the Capital Growth Fund changed its name to the Capital Appreciation Fund. Amounts designated as "--" are either $0 or rounded to $0. 12 & 13 NOTES TO FINANCIAL STATEMENTS - -------------------------------------------------------------------------------- STI CLASSIC VARIABLE TRUST FUNDS JUNE 30, 1999 1. Organization The STI Classic Variable Trust (the "Trust") was organized as a Massachusetts business trust under a Declaration of Trust dated April 18, 1995. The Trust is registered under the Investment Company Act of 1940, as amended, as an open-end management investment company with six funds: the Value Income Stock Fund, the Mid-Cap Equity Fund, the Small Cap Equity Fund, the Capital Appreciation Fund (formerly the Capital Growth Fund), the International Equity Fund (collectively "the Equity Funds") and the Investment Grade Bond Fund. The assets of each Fund are segregated, and a shareholder's interest is limited to the Fund in which shares are held. The Fund's prospectus provides a description of each Fund's investment objective policies and strategies. The financial statements presented herein are those of the Value Income Stock Fund, the Capital Appreciation Fund, and the International Equity Fund. The financial statements of the Mid-Cap Equity Fund, the Small Cap Equity Fund, and the Investment Grade Bond Fund are not presented herein, but presented separately. 2. Significant Accounting Policies The following is a summary of significant accounting policies followed by the Trust. These policies are in conformity with generally accepted accounting principles. SECURITY VALUATION -- Investments in equity securities that are traded on a national securities exchange (or reported on the NASDAQ national market system) are valued at the last quoted sales price, if readily available for such equity securities, on each business day. If there is no such reported sale, these securities, and unlisted securities for which market quotations are readily available, are valued at the most recently quoted bid price. Foreign securities in the International Equity Fund are valued based upon quotations from the primary market in which they are traded. Debt obligations exceeding sixty days to maturity for which market quotations are readily available are valued at the most recently quoted bid price. Debt obligations with sixty days or less until maturity may be valued either at the most recently quoted bid price or at their amortized cost. FEDERAL INCOME TAXES -- It is each Fund's intention to qualify as a regulated investment company for Federal income tax purposes and distribute all of its taxable income and net capital gains. Accordingly, no provisions for Federal income taxes are required. SECURITY TRANSACTIONS AND INVESTMENT INCOME -- Security transactions are accounted for on the trade date of the security purchase or sale. Dividend income is recognized on ex-dividend date, and interest income is recognized on an accrual basis and includes, where applicable, the pro rata amortization of premium or accretion of discount. The cost used in determining net realized capital gains and losses on the sale of securities are those of the specific securities sold, adjusted for the accretion and amortization of purchase discounts and premiums during the applicable holding period. Purchase discounts and premiums on securities are accreted and amortized to maturity using the scientific interest method, which approximates the effective interest method. REPURCHASE AGREEMENTS -- Securities pledged as collateral for repurchase agreements are held by the custodian bank until the repurchase 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 an insolvency proceeding, realization of the collateral by the Funds may be delayed or limited. NET ASSET VALUE PER SHARE -- The net asset value per share of each Fund is calculated on each business day. It is computed by dividing the assets of each Fund, less its liabilities, by the number of outstanding shares. The offering price per share of the Funds is the net asset value per share. FOREIGN CURRENCY TRANSACTIONS -- With respect to the International Equity Fund, the books and records are maintained in U.S. dollars. Foreign currency amounts are translated into U.S. dollars on the following basis: o market value of investment securities, assets and liabilities at the current rate of exchange; and o purchases and sales of investment securities, income, and expenses at the relevant rates of exchange prevailing on the respective dates of such transactions. The International Equity Fund does not isolate the portion of gains and losses on investments in equity securities that is due to changes in the foreign exchange rates from that which is due to change in market prices of equity securities. The International Equity Fund reports certain foreign currency-related transactions as components of realized gains for financial reporting purposes, whereas such components are treated as ordinary income for Federal income tax purposes. OTHER -- Distributions from net investment income for the Value Income Stock Fund and the Capital Appreciation Fund are declared and paid quarterly to shareholders. Distributions from net investment income for the International Equity Fund are declared and paid annually to shareholders. Any net realized capital gains are distributed to shareholders at least annually. Expenses related to a specific Fund are 14 - -------------------------------------------------------------------------------- UNAUDITED charged to that Fund. Other operating expenses of the Trust are pro-rated to the Funds on the basis of relative net assets. 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. Administration and Distribution Agreements The Trust and SEI Investments Mutual Funds Services (the "Administrator") are parties to an administration agreement (the "Administration Agreement") dated August 18, 1995 as amended November 19, 1997. Under the terms of the Administration Agreement the Administrator is entitled to a fee, subject to a minimum, (expressed as a percentage of the combined average daily net assets of the Trust and the STI Classic Funds) of: .12% up to $1 billion, .09% on the next $4 billion, .07% on the next $3 billion, .065% on the next $2 billion, and .06% for over $10 billion. The Trust and Federated Services Company are parties to a Transfer Agency servicing agreement dated August 2, 1995 under which Federated Services Company provides transfer agency services to the Trust. The Trust and SEI Investments Distribution Co. ("the Distributor") are parties to a Distribution Agreement dated August 2, 1995. The Distributor receives no fees for its services under this agreement. 4. Investment Advisory Agreement Investment advisory services are provided to the Trust by STI Capital Management, N.A. ("STI Capital"). Under the terms of the investment advisory agreements, STI Capital is entitled to receive a fee from the Fund, computed daily and paid monthly, at an annual rate of 1.15%, .80% and 1.25% of the average daily net assets of the Capital Appreciation Fund, Value Income Stock Fund, and International Equity Fund, respectively. STI Capital has voluntarily agreed to waive all or a portion of its fees (and to reimburse Funds' expenses) in order to limit operating expenses. Fee waivers and expense reimbursements are voluntary and may be terminated at any time. SunTrust Bank, Atlanta acts as Custodian for all the Funds except the International Equity Fund which has a custodian agreement with the Bank of New York. Fees of the Custodian are paid on the basis of net assets. 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. 5. Organizational Costs and Transactions with Affiliates The Trust incurred organization costs of approximately $55,566. These costs have been deferred in the accounts of the Funds and are being amortized on a straight line basis over a period of sixty months commencing with operations. The costs include legal fees of approximately $44,153 for organizational work performed by a law firm of which two officers of the Trust are partners. In the event any of the initial shares of the Trust are redeemed by any holder thereof during the period that the Trust is amortizing its organizational costs, the redemption proceeds payable to the holder thereof by the Trust will be reduced by the unamortized organizational cost in the same ratio as the number of initial shares being redeemed bears to the number of initial shares outstanding at the time of redemption. Certain officers of the Trust are also officers of the Administrator and/or the Distributor. Such officers are paid no fees by the Trust for serving as officers of the Trust. The Fund has entered into an agreement with SEI Investments to manage the investments of repurchase agreements for the Funds. For its services the Liquidity Desk received $10,624.03 for the year ended June 30, 1999. 6. Investment Transactions The cost of security purchases and the proceeds from security sales, excluding short-term investments, for the six month period ended June 30, 1999 were as follows: U.S. GOVT. U.S. GOVT. PURCHASES SALES PURCHASES SALES (000) (000) (000) (000) ------------ ------------ ------------ ------------ Value Income Stock Fund $41,148 $ 38,029 $ -- $ -- Capital Appreciation Fund 97,159 83,515 -- -- International Equity Fund 18,970 19,584 -- -- At June 30, 1999, the total cost of securities and the net realized gains or losses on securities sold for Federal income tax purposes was not materially different from amounts reported for financial reporting purposes. The aggregate gross unrealized appreciation and depreciation for securities held by the Investment Grade Bond and Equity Funds at June 30, 1999 was as follows: NET UNREALIZED APPRECIATION/ DEPRECIATED APPRECIATED SECURITIES SECURITIES (DEPRECIATION) (000) (000) (000) ---------- ---------- ------------ Value Income Stock Fund $11,789 $(2,188) $ 9,601 Capital Appreciation Fund 29,369 (2,786) 26,583 International Equity Fund 1,998 (569) 1,429 15 NOTES Investment Advisor: STI Capital Management, N.A. STI Classic Variable Trust 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 Variable Trust Fund will achieve its investment objective. The STI Classic Variable Trust Fundsare advised by an affiliate 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-----