-----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, KZrk2ncqs/0zfQNtkdn5FwGGSeTuF3tqFrBjOJUc4QDHiGe8gjgyPIShFSNFivLf IKsQXNyKf9c51JSWtob3IA== 0000950152-06-005022.txt : 20060608 0000950152-06-005022.hdr.sgml : 20060608 20060608164137 ACCESSION NUMBER: 0000950152-06-005022 CONFORMED SUBMISSION TYPE: N-CSR PUBLIC DOCUMENT COUNT: 4 CONFORMED PERIOD OF REPORT: 20060331 FILED AS OF DATE: 20060608 DATE AS OF CHANGE: 20060608 EFFECTIVENESS DATE: 20060608 FILER: COMPANY DATA: COMPANY CONFORMED NAME: STI CLASSIC FUNDS CENTRAL INDEX KEY: 0000883939 IRS NUMBER: 232678674 STATE OF INCORPORATION: OH FISCAL YEAR END: 0331 FILING VALUES: FORM TYPE: N-CSR SEC ACT: 1940 Act SEC FILE NUMBER: 811-06557 FILM NUMBER: 06894458 BUSINESS ADDRESS: STREET 1: 3435 STELZER RD. CITY: COLUMBUS STATE: OH ZIP: 43219 BUSINESS PHONE: 6144708000 MAIL ADDRESS: STREET 1: 3435 STELZER RD. 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LVRIX 0000883939 S000004750 Seix High Yield Fund C000012926 A Shares HYPSX C000012927 C Shares HYLSX C000012928 I Shares SAMHX 0000883939 S000011297 Seix Floating Rate High Income Fund C000031119 A Shares SFRAX C000031120 C Shares C000031121 I Shares SAMBX 0000883939 S000011298 STI Classic Small Cap Quantitative Equity Fund C000031122 A Shares SCQAX C000031123 C Shares SCQEX C000031124 I Shares SCQIX 0000883939 S000012996 STI Classic Institutional Short-Term Bond Fund C000035098 I Shares SISBX N-CSR 1 l19783anvcsr.txt STI CLASSIC FUNDS N-CSR UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM N-CSR CERTIFIED SHAREHOLDER REPORT OF REGISTERED MANAGEMENT INVESTMENT COMPANIES Investment Company Act file number 811-06557 STI Classic Funds (Exact name of registrant as specified in charter) BISYS Fund Services, 3435 Stelzer Road Columbus, Ohio 43219 (Address of principal executive offices) (Zip code)
BISYS Fund Services, 3435 Stelzer Road Columbus, Ohio 43219 (Name and address of agent for service) Registrant's telephone number, including area code: 614-470-8000 Date of fiscal year end: 03/31 Date of reporting period: 03/31/06 ITEM 1. REPORTS TO STOCKHOLDERS. 2006 ANNUAL REPORT EQUITY FUNDS March 31, 2006 STI Classic Funds TABLE OF CONTENTS STI CLASSIC EQUITY FUNDS ANNUAL REPORT March 31, 2006 Letter to Shareholders ................................................... 1 MANAGEMENT DISCUSSION AND ANALYSIS EQUITY FUNDS: Aggressive Growth Stock Fund .......................................... 3 Capital Appreciation Fund ............................................. 5 Emerging Growth Stock Fund ............................................ 7 International Equity Fund ............................................. 9 International Equity Index Fund ....................................... 11 Large Cap Relative Value Fund ......................................... 13 Large Cap Value Equity Fund ........................................... 15 Mid-Cap Equity Fund ................................................... 17 Mid-Cap Value Equity Fund ............................................. 19 Quality Growth Stock Fund ............................................. 21 Small Cap Growth Stock Fund ........................................... 23 Small Cap Value Equity Fund ........................................... 25 Strategic Quantitative Equity Fund .................................... 27 ASSET ALLOCATION FUNDS: Balanced Fund ......................................................... 29 Life Vision Aggressive Growth Fund .................................... 31 Life Vision Conservative Fund ......................................... 33 Life Vision Growth and Income Fund .................................... 35 Life Vision Moderate Growth Fund ...................................... 37 Schedules of Portfolio Investments ....................................... 39 Statements of Assets and Liabilities ..................................... 93 Statements of Operations ................................................. 97 Statements of Changes in Net Assets ...................................... 101 Financial Highlights ..................................................... 115 Notes to Financial Statements ............................................ 125 Report of Independent Registered Public Accounting Firm .................. 141 Trustees and Officers of the STI Classic Funds ........................... 142 Additional Information ................................................... 144
LETTER TO SHAREHOLDERS March 31, 2006 Dear Valued STI Classic Funds Shareholder, Another fiscal year has come to a successful close. The environment was challenging, and the path over the past 12 months was uneven, but both the economy and financial markets navigated the setbacks and emerged with positive results. The STI Classic Funds performed very well during these often trying times, with peer group outperformance by 27 stock and bond funds across a number of diverse styles and asset classes. This outperformance helped achieve competitive returns with well-diversified portfolios. We will highlight some key developments in the economy and financial markets, but would first like to thank you for your confidence and support in choosing the STI Classic Funds to help grow your investments. We greatly value the opportunity to serve you and continue to strive to meet your expectations every day. The overall economic backdrop for the markets was positive despite natural, economic, and financial "headwinds." Real Gross Domestic Product(1) (GDP) grew 3.5% for the year ended March 2006, paced by strong double-digit gains in business capital spending. "Headline" inflation, as measured by the Consumer Price Index, increased 3.4% during the same period, which was 1% higher than in the previous fiscal year. Energy prices, as everyone is painfully aware, were largely responsible for the acceleration. However, if energy and food are taken out of the measure, as the Federal Reserve ("the Fed") prefers to do in setting monetary policy, the resulting core inflation rate was just 2.1%. Unfortunately, the economy did not grow at an "average" pace for the entire year. The tragedies of hurricanes Katrina and Rita were a terrible blow in both sociological and economic terms. Though the storms occurred in the third quarter of 2005, the statistical impact of the devastation was concentrated in the fourth quarter, when growth slowed to an anemic 1.7%. The damage to the energy infrastructure from the storm helped drive prices sharply higher, draining discretionary dollars from consumer wallets and business bottom lines. Energy prices retreated somewhat during the fourth quarter, but then moved higher in the first quarter. Fed policy was another headwind for the economy. The central bank raised short-term interest rates fifteen consecutive times since June 2004, culminating in the 4.75% fed funds rate on March 31, 2006. During most of this time, the impact of the tightening was limited to short-term rates, but after the yield curve flattened at the end of 2005 (short and long rate roughly equal), long-term rates, such as home mortgage rates, also moved higher, making borrowing more expensive. The continued growth in the economy, combined with reasonable valuations, helped equities move broadly higher during the fiscal year. The S&P 500 Index returned 11.72%, including dividends, during the 12 months ended March 31, 2006, compared with 6.69% in the previous year. Energy stocks, boosted by the increase in oil prices, out performed other major sectors in the index for the year. In addition, above average gains were posted in the financial, telecom, and technology sectors. Consumer stocks underperformed, reflecting the pressure on consumers as discussed earlier. The mix of sector performance did not overly benefit either the value or growth style for the year, except in small-caps, where growth outperformed value by four percentage points. Small-cap and mid-cap stocks performed very well over the past year, with a 25.85% gain in the Russell 2000(R) Index and a 21.54% rise in the Russell Midcap(R) Index. International stocks also performed very well, as evidenced by the 24.41% gain in the MSCI EAFE Index. In the fixed-income markets, the yield on the 10-year Treasury note was relatively "range-bound" for much of the year, but continued pressure from short-term rate increases and higher energy prices, among other factors pushed the yield to 4.85% by March. As a result, bond returns, as measured by the Lehman Brothers Aggregate Bond Index, returned a positive, but below average, 2.26% for the year ended March 31. Higher quality bonds, such as Treasuries, tended to lag the overall investment-grade index. The standout performer in the fixed-income market was the High Yield sector, which returned 7.43% during the year. The STI Classic Funds performed very well during this period, as 27 funds across a wide spectrum of investment styles generated above-average returns. These included large-cap growth and value, mid-cap, small-cap growth and value, short and intermediate-term bonds, high yield, and municipal bonds. Many of these funds were highlighted for their strong performance in publications such as the Wall Street Journal, Investor's Business Daily, and Kiplinger's Personal Finance. In addition to strong performance, we reduced the internal expense ratios on many of the funds to expressly benefit you, our valued shareholder. 1 Looking ahead, we expect continued economic growth, though the pace over the next year will likely be below that of the past year. This may allow the Fed to keep short-term rates steady for awhile as long as inflation remains contained. It promises to be quite a balancing act for new Fed Chairman Ben Bernanke! With growth likely to slow, interest rates relatively high as compared to the last few years, and elevated energy prices still a threat, our strategy is to emphasize quality company holdings that we believe are best able to weather a more challenging environment. We close this letter with a special thanks to you, and also to Douglas Phillips, CFA, the founding president of Trusco Capital Management, who retired on December 31, 2005. Under Doug's outstanding leadership, the STI Classic Funds thrived even in the most challenging markets, to become one of the nation's leading mutual fund families. Of particular importance, we are most grateful to Doug Phillips for his strong sense of discipline, integrity, and commitment to the highest levels of client service. He will be missed, but his legacy will endure. Sincerely, /s/ David H. Eidson - ------------------------------------- David H. Eidson Chairman and CEO /s/ Robert J. Rhodes - ------------------------------------- Robert J. Rhodes, CFA Executive Vice President (1) The Gross Domestic Product ("GDP") is the monetary value of all the finished goods and services produced within a country's borders in a specific time period, though GDP is usually calculated on an annual basis. It includes all of private and public consumption, government outlays, investments and exports less imports that occur within a defined territory. 2 AGGRESSIVE GROWTH STOCK FUND PORTFOLIO MANAGER(S) - - Nancy Zevenbergen, CFA - - Brooke de Boutray, CFA - - Leslie Tubbs, CFA INVESTMENT CONCERNS Equity securities (stocks) are more volatile and carry more risk than other forms of investments, including investments in high-grade fixed income securities. The net asset value per share of this Fund will fluctuate as the value of the securities in the portfolio changes. Common stocks, and funds investing in common stocks, generally provide greater return potential when compared with other types of investments. Mid capitalization companies typically have a higher risk of failure and historically have experienced a greater degree of volatility. MANAGEMENT DISCUSSION & ANALYSIS HOW DID THE FUND PERFORM AGAINST ITS BENCHMARK FOR THE PERIOD ENDED MARCH 31, 2006? The Aggressive Growth Stock Fund (I Shares) gained 23.77% for the 12 months ended March 31, 2006, ahead of the 14.40% return for the Russell 3000(R) Growth benchmark. Outperformance was due almost entirely to stock selection. Fund holdings in Information Technology, Consumer Discretionary and Healthcare sectors showed particular strength during the period. Concentrations in IT consulting/services and communications equipment industry groups led the IT sector; restaurants and retail-electronics drove consumer issues; and biotechnolgy was Healthcare's leading group. High absolute returns in lower weighted Telecommunication Services and Industrial sectors also contributed.(1) While Energy garnered headlines and the highest absolute return for the benchmark, the Fund's lack of sector exposure did little to dampen performance. Losses in Consumer Staples and weaker relative returns in Financials tempered overall outperformance.(1) WHAT FACTORS (INCLUDING MARKET AND ECONOMIC CONDITIONS) INFLUENCED THE FUND'S PERFORMANCE FOR THE PERIOD ENDED MARCH 31, 2006? Over 90% of the Fund's outperformance over the last year was due to favorable stock selection, with half of the top-ten-weighted securities leading aggregate contributors. Shares of Gilead Sciences, Inc. (biotechnology), Cognizant Technology Solutions Corporation (IT consulting/services), QUALCOMM Incorporated (communications equipment), Starbucks Corporation (restaurants) and NII Holdings, Inc. (wireless telecom) performed particularly well. Yet, many holdings outside the top-ten also bolstered Fund performance including Broadcom Corporation (semiconductors), BlackRock, Inc. (asset management), and Celgene Corporation (biotechnology).(1) Internet issues produced lackluster returns during the period. Positions in eBay Inc. and Yahoo! Inc. produced aggregate losses, and were the largest detractors among top holdings.(1) HOW DO YOU PLAN TO POSITION THE FUND, BASED ON MARKET CONDITIONS? We firmly believe that adhering to our investment process and philosophy through all market environments is critical for achieving superior long-term returns. Though our aggressive growth equity style may be out of favor during specific market cycles, we remain steadfast in our commitment to provide a Fund with companies exhibiting faster, sustainable growth characteristics and leading in the development and delivery of innovative products and services. Though our active investment style and concentrated Fund holdings can lead to more volatile performance over short time periods, focusing on select companies positioned in industries exhibiting leadership and secular growth profiles, we believe, should lead to stocks appreciating more than the benchmark over the long-term.(1) (1) Portfolio composition subject to change 3 AGGRESSIVE GROWTH STOCK FUND GROWTH OF $10,000 INVESTMENT (as of March 31, 2006) (PERFORMANCE GRAPH)
Aggressive Growth Stock Russell 3000(R) Fund (I Shares) Growth Index --------------- --------------- 2/23/2004 10000 10000 9880 9832 10180 10009 9460 9479 12/04 10700 10394 9890 9945 10191 10199 10751 10628 12/05 11461 10932 3/06 12241 11377
This chart assumes an initial hypothetical investment of $10,000 made on 2/23/04. Total return is based on net change in N.A.V. (net asset value) assuming reinvestment of distributions. Returns shown on this page include reinvestment of all dividends and other distributions. The Funds performance is compared to the Russell 3000(R) Growth index which measures the performance of those companies found in the Russell universe with higher price-to-book ratios and higher forecasted growth values. The stocks in this index are also members of either the Russell 1000(R) Growth or the Russell 2000(R) Growth indices. The index is unmanaged and does not reflect the deduction of fees or taxes associated with a mutual fund, such as investment management and fund accounting fees. Investors cannot invest directly in an index, although they can invest in its underlying securities.
AVERAGE ANNUAL TOTAL RETURNS AS OF 3/31/06 (%) ------------------------- AGGRESSIVE GROWTH STOCK FUND INCEPTION DATE 1 YEAR SINCE INCEPTION - ---------------------------- -------------- ------- --------------- A SHARES WITHOUT SALES CHARGE 02/23/04 23.58 9.75 WITH SALES CHARGE* 16.48 6.70 C SHARES WITHOUT CDSC 02/23/04 22.70 9.06 WITH CDSC* 21.70 9.06 I SHARES 02/23/04 23.77 10.10 RUSSELL 3000(R) GROWTH INDEX 14.40 --
PAST PERFORMANCE DOES NOT GUARANTEE FUTURE RESULTS. THE PERFORMANCE DATA QUOTED REPRESENTS PAST PERFORMANCE AND CURRENT RETURNS MAY BE LOWER OR HIGHER. TOTAL RETURN FIGURES INCLUDE CHANGE IN SHARE PRICE, REINVESTMENT OF DIVIDENDS AND CAPITAL GAINS AND DO NOT REFLECT TAXES THAT A SHAREHOLDER WOULD PAY ON FUND DISTRIBUTIONS OR ON THE REDEMPTION OF FUND SHARES. THE INVESTMENT RETURN AND PRINCIPAL VALUE WILL FLUCTUATE SO THAT AN INVESTOR'S SHARES, WHEN REDEEMED MAY BE WORTH MORE OR LESS THAN THE ORIGINAL COST. FOR PERFORMANCE DATA CURRENT TO THE MOST RECENT MONTH END, VISIT OUR WEBSITE AT WWW.STICLASSICFUNDS.COM. * CLASS A SHARE PERFORMANCE REFLECTS THE MAXIMUM FRONT-END SALES CHARGE OF 5.75% AND CLASS C SHARES REFLECT THE MAXIMUM CDSC (CONTINGENT DEFERRED SALES CHARGE) OF 1.00% IN YEAR ONE ONLY. EFFECTIVE AUGUST 1, 2005, L SHARES WERE RENAMED C SHARES AND T SHARES WERE RENAMED I SHARES. SECTOR WEIGHTINGS (as of March 31, 2006)(1) as a percentage of total investments (PIE CHART) Telecommunications Services 5.2% Consumer Discretionary 22.6% Consumer Staples 3.6% Depositary Receipts 0.1% Financials 9.7% Health Care 16.8% Information Technology 36.6% Repurchase Agreements 4.7% Software 0.7%
(1) PORTFOLIO COMPOSITION IS SUBJECT TO CHANGE 4 CAPITAL APPRECIATION FUND PORTFOLIO MANAGER(S) - - Robert J. Rhodes, CFA - - Elizabeth G. Pola, CFA INVESTMENT CONCERNS Equity securities (stocks) are more volatile and carry more risk than other forms of investments, including investments in high-grade fixed income securities. The net asset value per share of this Fund will fluctuate as the value of the securities in the portfolio changes. Common stocks, and funds investing in common stocks, generally provide greater return potential when compared with other types of investments. MANAGEMENT DISCUSSION & ANALYSIS HOW DID THE FUND PERFORM AGAINST ITS BENCHMARK FOR THE PERIOD ENDED MARCH 31, 2006? The Capital Appreciation Fund (I Shares) gained 7.33% for the year ended March 31, 2006. This fell short of the 11.72% total return of the S&P 500 Index. While the first fiscal quarter, ended June 30, got off to a weak start, we believed the Fund was very well positioned with an excellent earnings growth profile in high-quality companies. Unfortunately, two major hurricanes during the September quarter created turmoil and uncertainty. Basically, higher growth companies and particularly anything associated with the consumer or technology got taken to the woodshed, while energy stocks soared. Investors grossly over estimated the longer-term impacts of the hurricanes, as is often the case when disaster events occur. Thus, we did not alter our strategy but held onto, and in some cases added to, consumer and technology holdings. This proved fortunate as energy shares actually had a short term relative price peak in mid-September. In the December quarter, our strategy paid off, with the Fund up 3.47% compared to 2.08% for the S&P 500. Energy and Utility stocks lagged badly, and Fund overweights in Consumer, Technology and Industrial were well rewarded. This good performance continued in the final (March) quarter with the Fund 4.41% (I Shares) versus 4.21% for the S&P 500. In summary, it really was a year of two distinct and contradictory halves. While the first six months were frustrating and disappointing, the Fund recovered smartly in the second half, with a return of 8.0%, well above the 6.4% of the benchmark.(1) WHAT FACTORS INFLUENCED THE FUND'S PERFORMANCE FOR THE PERIOD ENDED MARCH 31, 2006? Also creating headwinds for the Fund's investment strategy during the year were several trends within the equity markets. We mentioned energy stocks; we reduced exposure to this sector too early, based on valuation concerns as well as a judgment about the price of the commodity being extended versus its normative trend. Global geopolitics and bad weather made that judgment incorrect. Another factor was the continued extraordinary performance of small and midcap stocks. For example, within the S&P 500 the largest decile of market caps rose only 3.5% for the 12 months ended March 31, 2006, while the rest of the S&P was up 15.5%. The Capital Appreciation Fund has been tilted modestly toward larger companies over the last year, on the basis of relative attraction. Also, higher quality stocks, as measured by the S&P common stock quality rank, continued to lag lowest quality shares. We have kept the Fund a little bit more biased toward high quality, believing that rising interest rates, slowing profits growth and high energy prices would eventually create stress for lower quality stocks.(1) HOW DO YOU PLAN TO POSITION THE FUND, BASED ON MARKET CONDITIONS? As we look ahead, we have positioned the Fund to potentially benefit from several rather obvious aspects of the current environment. First, it looks like a "classic" economic cycle, but with the added twist of high oil prices. That is, we expect consumer spending to be under pressure, while late-cycle capital spending will remain relatively strong. Second, smaller but in particular low-quality stocks are selling at significant valuation premiums, measured by price/earnings ratios(2), to large, stable, well-diversified, well-financed, high quality companies. Third, we expect a significant slowdown in corporate profits as 2006 progresses, which should add to the appeal of companies with the kind of stable or improving earnings growth emphasized in the Fund. Consequently, the Fund is aligned more with high quality, visible growth, and somewhat larger cap stocks. We are convinced this is the most appropriate strategy for the year ahead, and one which should prove rewarding to performance of the Fund. (1) (1) Portfolio composition subject to change (2) The Price-to-Earnings Ratio (P/E) is the valuation ratio of a company's current share price compared to its per-share earnings. 5 CAPITAL APPRECIATION FUND GROWTH OF $10,000 INVESTMENT (as of March 31, 2006) (PERFORMANCE GRAPH)
Capital Appreciation Fund (I Shares) S&P 500 Index ------------------------------------ ------------- 3/96 10000 10000 10526 10451 10830 10771 12/96 11365 11673 11628 11978 13615 14074 14525 15132 12/97 14903 15567 16846 17739 17474 18325 15524 16502 12/98 19085 20017 19443 21014 21079 22495 19097 21091 12/99 20937 24229 21961 24785 22176 24126 22215 23893 12/00 21277 22023 19357 19412 20718 20548 17614 17532 12/01 19896 19406 19730 19459 17309 16852 14949 13941 12/02 15524 15116 15191 14640 16552 16895 16764 17342 12/03 18398 19454 18792 19784 18898 20123 18171 19746 12/04 19571 21569 18797 21105 18597 21394 18674 22165 12/05 19322 22628 3/06 20175 23580
This chart assumes an initial hypothetical investment of $10,000 made on 3/31/96. Total return is based on net change in N.A.V. (net asset value) assuming reinvestment of distributions. Returns shown on this page include reinvestment of all dividends and other distributions. The Funds performance is compared to the S&P 500 Index a market value-weighted index of 500 stocks designed to mimic the overall U.S. equity market's industry weightings. The index is unmanaged and does not reflect the deduction of fees or taxes associated with a mutual fund, such as investment management and fund accounting fees. Investors cannot invest directly in an index, although they can invest in its underlying securities.
AVERAGE ANNUAL TOTAL RETURNS AS OF 3/31/06 (%) ---------------------------------- CAPITAL APPRECIATION FUND INCEPTION DATE 1 YEAR 3 YEAR 5 YEAR 10 YEAR - ------------------------- -------------- ------ ------ ------ ------- A SHARES WITHOUT SALES CHARGE 06/09/92 6.97 9 25 0.21 6.61 WITH SALES CHARGE* 0.83 7.13 -0.97 5.98 C SHARES WITHOUT CDSC 06/01/95 6.27 8.75 -0.25 6.10 WITH CDSC* 5.27 8.75 -0.25 6.10 I SHARES WITHOUT LOAD 07/01/92 7.33 9.92 0.83 7.27 S&P 500 INDEX 11.72 17.21 3.97 8.95
PAST PERFORMANCE DOES NOT GUARANTEE FUTURE RESULTS. THE PERFORMANCE DATA QUOTED REPRESENTS PAST PERFORMANCE AND CURRENT RETURNS MAY BE LOWER OR HIGHER. TOTAL RETURN FIGURES INCLUDE CHANGE IN SHARE PRICE, REINVESTMENT OF DIVIDENDS AND CAPITAL GAINS AND DO NOT REFLECT TAXES THAT A SHAREHOLDER WOULD PAY ON FUND DISTRIBUTIONS OR ON THE REDEMPTION OF FUND SHARES. THE INVESTMENT RETURN AND PRINCIPAL VALUE WILL FLUCTUATE SO THAT AN INVESTOR'S SHARES, WHEN REDEEMED MAY BE WORTH MORE OR LESS THAN THE ORIGINAL COST. FOR PERFORMANCE DATA CURRENT TO THE MOST RECENT MONTH END, VISIT OUR WEBSITE AT WWW.STICLASSICFUNDS.COM. * CLASS A SHARE PERFORMANCE REFLECTS THE MAXIMUM FRONT-END SALES CHARGE OF 5.75% AND CLASS C SHARES REFLECT THE MAXIMUM CDSC (CONTINGENT DEFERRED SALES CHARGE) OF 1.00% IN YEAR ONE ONLY. EFFECTIVE AUGUST 1, 2005, L SHARES WERE RENAMED C SHARES AND T SHARES WERE RENAMED I SHARES. SECTOR WEIGHTINGS (as of March 31, 2006)(1) as a percentage of total investments (PIE CHART) Consumer Discretionary 13.6% Consumer staples 2.7% Energy 3.6% Financials 12.4% Health Care 11.6% Industrials 14.1% Information Technology 18.1% Materials 1.0% Telecommunications Services 1.7% Short-Term Investments 19.0% Repurchase Agreement 2.2%
(1) PORTFOLIO COMPOSITION IS SUBJECT TO CHANGE 6 EMERGING GROWTH STOCK FUND PORTFOLIO MANAGER(S) - - Nancy Zevenbergen, CFA - - Brooke de Boutray, CFA - - Leslie Tubbs, CFA INVESTMENT CONCERNS Equity securities (stocks) are more volatile and carry more risk than other forms of investments, including investments in high-grade fixed income securities. The net asset value per share of this Fund will fluctuate as the value of the securities in the portfolio changes. MANAGEMENT DISCUSSION & ANALYSIS HOW DID THE FUND PERFORM AGAINST ITS BENCHMARK FOR THE PERIOD ENDED MARCH 31, 2006? The Emerging Growth Stock Fund (I Shares) gained 36.78% for the 12 months ended March 31, 2006, compared to a 22.68% return for the Russell Midcap(R) Growth benchmark. Select concentrations in Financials and Industrials led Fund stock selection as holdings in both sectors more than doubled benchmark counterparts. Although not an active Fund construction decisions, underweighting in Consumer Discretionary and overweighting in Telecommunication Services help to further Fund performance. Information Technology delivered the largest aggregate contribution due primarily to our significant sector exposure. Communication equipment and small-capitalization internet software/services produced the largest IT sector gains.(1) While Energy garnered headlines and a high absolute return for the benchmark, the Fund's lack of exposure did little to dampen performance.(1) WHAT FACTORS INFLUENCED THE FUND'S PERFORMANCE FOR THE PERIOD ENDED MARCH 31, 2006? Fund outperformance was led by favorable stock selection, with six of the top-ten-weighted securities leading aggregate contributors. Concentrated positions and stellar price gains for NII Holdings, Inc. (wireless telecom), AirTran Holdings, Inc. (airlines), F5 Networks, Inc. (communications equipment), aQuantive, Inc. (internet software/services), Euronet Worldwide, Inc. (data processing), and Psychiatric Solutions, Inc. (healthcare facilities) drove Fund outperformance. Other significant contributors included Varian Medical Systems, Inc. (healthcare equipment), Calamos Asset Management, Inc. (diversified financials), and The Corporate Executive Board Company (diversified commercial services).(1) Fund challenges laid squarely in security-specific losses, most of which were sold during the period because of deteriorating fundamentals. Apple Computer, Inc. (computer hardware) was included among these losses. However, Apple was not sold due to failing fundamentals, but rather to maintain our commitment to the capitalization structure of the Fund.(1) HOW DO YOU PLAN TO POSITION THE FUND, BASED ON MARKET CONDITIONS? We firmly believe that adhering to our investment process and philosophy through all market environments is critical to achieving superior long-term returns. Though our aggressive growth equity style may be out of favor during specific market cycles, we remain steadfast in our commitment to provide a Fund with companies exhibiting faster, sustainable growth characteristics and leading in the development and delivery of innovative products and services. Though our active investment style and concentrated Fund holdings can lead to more volatile performance over short time periods, purchasing select companies, positioned in industries exhibiting leadership and secular growth, we believe, should lead to fund appreciation ahead of the benchmark over the long-term.(1) (1) Portfolio composition subject to change. 7 EMERGING GROWTH STOCK FUND GROWTH OF $10,000 INVESTMENT (as of March 31, 2006) (PERFORMANCE GRAPH)
Emerging Growth Stock Russell Midcap Fund (I Shares) Growth Index --------------- -------------- 2/04 10000 10000 9850 9981 9820 10086 8710 9649 12/04 9870 10994 9380 10811 10170 11182 10610 11914 12/05 11370 12325 3/06 12830 13262
This chart assumes an initial hypothetical investment of $10,000 made on 2/23/04. Total return is based on net change in N.A.V. (net asset value) assuming reinvestment of distributions. Returns shown on this page include reinvestment of all dividends and other distributions. The Funds performance is compared to the Russell Midcap(R) Growth Index which measures the performance of those companies in the Russell universe with higher price-to-book ratios and higher forecasted growth values. The stocks are also members of the Russell 1000(R) Growth index. The index is unmanaged and does not reflect the deduction of fees or taxes associated with a mutual fund, such as investment management and fund accounting fees. Investors cannot invest directly in an index, although they can invest in its underlying securities.
AVERAGE ANNUAL TOTAL RETURNS AS OF 3/31/06 (%) ------------------------- EMERGING GROWTH STOCK FUND INCEPTION DATE 1 YEAR SINCE INCEPTION - -------------------------- -------------- ------- --------------- A SHARES WITHOUT SALES CHARGE 02/23/04 36.30 12.17 WITH SALES CHARGE* 28.46 9.06 C SHARES WITHOUT CDSC 02/27/04 35.52 10.91 WITH CDSC* 34.52 10.91 I SHARES 02/23/04 36.78 12.59 RUSSELL MIDCAP(R) GROWTH INDEX 22.68 --
PAST PERFORMANCE DOES NOT GUARANTEE FUTURE RESULTS. THE PERFORMANCE DATA QUOTED REPRESENTS PAST PERFORMANCE AND CURRENT RETURNS MAY BE LOWER OR HIGHER. TOTAL RETURN FIGURES INCLUDE CHANGE IN SHARE PRICE, REINVESTMENT OF DIVIDENDS AND CAPITAL GAINS AND DO NOT REFLECT TAXES THAT A SHAREHOLDER WOULD PAY ON FUND DISTRIBUTIONS OR ON THE REDEMPTION OF FUND SHARES. THE INVESTMENT RETURN AND PRINCIPAL VALUE WILL FLUCTUATE SO THAT AN INVESTOR'S SHARES, WHEN REDEEMED MAY BE WORTH MORE OR LESS THAN THE ORIGINAL COST. FOR PERFORMANCE DATA CURRENT TO THE MOST RECENT MONTH END, VISIT OUR WEBSITE AT WWW.STICLASSICFUNDS.COM. * CLASS A SHARE PERFORMANCE REFLECTS THE MAXIMUM FRONT-END SALES CHARGE OF 5.75% AND CLASS C SHARES REFLECT THE MAXIMUM CDSC (CONTINGENT DEFERRED SALES CHARGE) OF 1.00% IN YEAR ONE ONLY. EFFECTIVE AUGUST 1, 2005, L SHARES WERE RENAMED C SHARES AND T SHARES WERE RENAMED I SHARES. SECTOR WEIGHTINGS (As of March 31, 2006) (1) as a percentage of total investments (PIE CHART) Consumer Discretionary 17.6% Consumer Staples 3.2% Financials 14.9% Health Care 21.0% Industrials 8.0% Information Technology 25.0% Repurchase Agreements 1.5% Telecommunications Services 8.8%
(1) PORTFOLIO COMPOSITION IS SUBJECT TO CHANGE 8 INTERNATIONAL EQUITY FUND PORTFOLIO MANAGER - - Chad Deakins, CFA INVESTMENT CONCERNS International investing involves increased risk and volatility. Equity securities (stocks) are more volatile and carry more risk than other forms of investments, including investments in high-grade fixed income securities. The net asset value per share of this Fund will fluctuate as the value of the securities in the portfolio changes. MANAGEMENT DISCUSSION & ANALYSIS HOW DID THE FUND PERFORM AGAINST ITS BENCHMARK FOR THE PERIOD ENDED MARCH 31, 2006? The International Equity Fund returned 24.47% (I Shares) for the 12 months ended March, 31, 2006. The MSCI EAFE returned 24.41% during the same time frame. During the period the groups of stocks that contributed the most to the Index performance were Japanese Financials +59.6%, Japanese Materials +55.6%, U.K. Materials +50%, and Australian Materials +41%. Telecom stocks were the worst performers in most regions and Consumer Discretionary stocks were among the worst in most regions, except Japan where they were very strong.(1) WHAT FACTORS INFLUENCED THE FUND'S PERFORMANCE FOR THE PERIOD ENDED MARCH 31, 2006? Stock selection was good in Japan and Continental Europe. In Japan the Fund held a few trading companies, Mitsubishi Corp. +77%, Sumitomo Corp. +68%, and Itochu Corp. +71%. These three companies benefited from high demand for commodities and the expanding global economy. Machinery stocks Komotsu +154%, and Kubota +103% also benefited the Fund as demand for Industrial and Construction Machinery was high.(1) In Europe, Mergers & Acquisitions speculation along with a positive pricing environment helped Utilities stocks. Fortum +88%, EDP +46% and Endesa +47% were stocks the Fund held during the period. In Australia our main holding, Bluescope Steel, was off 18% while the rest of the materials group was up 50-60%. In the United Kingdom, Vodaphone, -18%, was one of our largest holdings and had disappointing guidance in the second half of '05.(1) HOW DO YOU PLAN TO POSITION THE FUND, BASED ON MARKET CONDITIONS? Smaller Cap issues now trade at a premium to large cap names. Small caps generally have higher growth rates and are more leveraged. As this cycle ages, factors like interest rates and inflation should begin to restrict growth. The smaller cap issues should be the first group to begin to struggle. Our process has historically been a large cap core process and we have struggled to keep up with the markets as the small cap issues have run. We think the small cap leadership is near an end which should benefit our style. With valuations compressed, meaning the spread from the most expensive to least expensive stocks being at historically low levels, the focus now must be on growth. Our focus is always a balance of both Growth and Value, but in this environment Growth is much more important. Compared to the U.S., the International markets continue to look attractive in terms of relative valuation comparisons.(1) (1) Portfolio composition subject to change. 9 INTERNATIONAL EQUITY FUND GROWTH OF $10,000 INVESTMENT (as of March 31, 2006) (PERFORMANCE GRAPH)
International Equity Fund (I Shares) MSCI EAFE Index -------------------- --------------- 3/96 10000 10000 10551 10158 10680 10145 12/96 11658 10307 12132 10145 13611 11462 14331 11381 12/97 13214 10490 15219 12033 15387 12161 12574 10432 12/98 14697 12588 14719 12763 15124 13087 15179 13662 12/99 16089 15982 15871 15965 16717 15333 15360 14096 12/00 15532 13718 13713 11837 13868 11714 12302 10074 12/01 12781 10776 12923 10881 12598 10601 10115 8509 12/02 10606 9059 9782 8315 11616 9917 12341 10723 12/03 14516 12554 15093 13099 14978 13127 15093 13090 12/04 17277 15096 17132 15071 16870 14919 18747 16467 12/05 19542 17139 3/06 21324 18749
This chart assumes an initial hypothetical investment of $10,000 made on 3/31/96. Total return is based on net change in N.A.V. (net asset value) assuming reinvestment of distributions. Returns shown on this page include reinvestment of all dividends and other distributions. The Funds performance is compared to the Morgan Stanley Capital International, Europe, Australasia and Far East (MSCI EAFE Index) is a widely-recognized, market capitalization index that measures market equity performance based upon indices from 21 foreign and developed markets. The index is unmanaged and does not reflect the deduction of fees or taxes associated with a mutual fund, such as investment management and fund accounting fees. Investors cannot invest directly in an index, although they can invest in its underlying securities.
AVERAGE ANNUAL TOTAL RETURNS AS OF 3/31/06 (%) ---------------------------------- INTERNATIONAL EQUITY FUND INCEPTION DATE+ 1 YEAR 3 YEAR 5 YEAR 10 YEAR - ------------------------- --------------- ------ ------ ------ ------- A SHARES WITHOUT SALES CHARGE 01/02/96 24.15 29.16 8.83 7.47 WITH SALES CHARGE* 17.01 26.61 7.55 6.84 C SHARES WITHOUT CDSC 01/02/96 23.34 28.37 8.09 6.74 WITH CDSC* 22.34 28.37 8.09 6.74 I SHARES 01/31/95 24.47 29.66 9.23 7.87 MSCI EAFE INDEX 24.41 31.13 9.63 6.49
PAST PERFORMANCE DOES NOT GUARANTEE FUTURE RESULTS. THE PERFORMANCE DATA QUOTED REPRESENTS PAST PERFORMANCE AND CURRENT RETURNS MAY BE LOWER OR HIGHER. TOTAL RETURN FIGURES INCLUDE CHANGE IN SHARE PRICE, REINVESTMENT OF DIVIDENDS AND CAPITAL GAINS AND DO NOT REFLECT TAXES THAT A SHAREHOLDER WOULD PAY ON FUND DISTRIBUTIONS OR ON THE REDEMPTION OF FUND SHARES. THE INVESTMENT RETURN AND PRINCIPAL VALUE WILL FLUCTUATE SO THAT AN INVESTOR'S SHARES, WHEN REDEEMED MAY BE WORTH MORE OR LESS THAN THE ORIGINAL COST. FOR PERFORMANCE DATA CURRENT TO THE MOST RECENT MONTH END, VISIT OUR WEBSITE AT WWW.STICLASSICFUNDS.COM. * CLASS A SHARE PERFORMANCE REFLECTS THE MAXIMUM FRONT-END SALES CHARGE OF 5.75% AND CLASS C SHARES REFLECT THE MAXIMUM CDSC (CONTINGENT DEFERRED SALES CHARGE) OF 1.00% IN YEAR ONE ONLY. EFFECTIVE AUGUST 1, 2005, L SHARES WERE RENAMED C SHARES AND T SHARES WERE RENAMED I SHARES. + The performance quoted represents past performance of the SunTrust Bank's internally managed common trust fund, adjusted for fees and expenses for periods prior to December 1, 1995, and past performance of the I shares for the periods between December 1, 1995 and inception of the A and C shares on January 2, 1996. The common trust fund was not registered under the 1940 Act and therefore was not subject to certain investment restrictions which may have adversely affected performance. SECTOR WEIGHTINGS (as of March 31, 2006)(1) as a percentage of total investments (PIE CHART) Consumer Discretionary 11.7% Consumer Staples 4.8% Energy 6.3% Financials 26.9% Health Care 4.5% Industrials 10.0% Information Technology 5.8% Materials 6.9% Short-Term Investment 12.0% Telecommunication Services 5.2% Utilities 5.9%
(1) PORTFOLIO COMPOSITION IS SUBJECT TO CHANGE 10 INTERNATIONAL EQUITY INDEX FUND PORTFOLIO MANAGER(S) - - Chad Deakins, CFA - - Andrew Atkins INVESTMENT CONCERNS International investing involves increased risk and volatility. Equity securities (stocks) are more volatile and carry more risk than other forms of investments, including investments in high-grade fixed income securities. The net asset value per share of this Fund will fluctuate as the value of the securities in the portfolio changes. It is important to remember that there are risks associated with index investing, including the potential risk of market decline, as well as the risks associated with investing in specific companies. MANAGEMENT DISCUSSION & ANALYSIS HOW DID THE FUND PERFORM AGAINST ITS BENCHMARK FOR THE PERIOD ENDED MARCH 31, 2006? The International Equity Index Fund performed well relative to its benchmark, the MSCI EAFE Index (GDP weighted), and was up over 25.06% (I Shares). The Fund generally tracks the benchmark very well and typically outperforms the price only version of the MSCI EAFE GDP by dividend yield of the Fund less expenses. For the 12 month period ended March 31, 2006, the Fund was up 25.06% and the MSCI EAFE GDP price only Index was up 23.14%. International equity markets have performed very well relative to domestic U.S. markets over the past decade and the both the Fund and the Index that it tracks have outperformed the S&P 500 Index over the 1, 3, 5, and 7 year periods ended March 31, 2006. As the U.S. continues to decline as a percent of total world market value, we anticipate further opportunities for strong performance in International Equities.
ANNUALIZED TOTAL RETURN FOR THE PERIOD ENDED MARCH 31, 2006 ----------------------------------- 1 Year 3 Year 5 Year 7 Year ------ ------ ------ ------ S&P 500 INDEX(1) 11.72% 17.22% 3.97% 1.66%
WHAT FACTORS INFLUENCED THE FUND'S PERFORMANCE FOR THE PERIOD ENDED MARCH 31, 2006? One of the primary factors affecting performance was simply the strength of international markets over the past year. The Fund holds equities of 22 countries. Twenty of those countries (or over 90% of the Fund's market value) outperformed the S&P 500 over the one year period.(2) From a valuation perspective, lower P/E(3) stocks outperformed those with higher valuations and the Fund was more heavily weighted in lower value names than higher. The Fund (and the index it tracks) is heavily weighted in larger cap names which performed well over the past year.(2) From a sector perspective, it is interesting to note that although Energy was very strong, it was only the eighth best sector internationally. Energy was the strongest sector domestically in the U.S. Sectors like Materials, Financials, Industrials and IT all handily outperformed Energy Internationally. This is an excellent reminder that international exposure can benefit well diversified portfolios(2). HOW DO YOU PLAN TO POSITION THE FUND, BASED ON MARKET CONDITIONS? This Fund will continue to mirror the MSCI EAFE Index (GDP Weighted) as closely as possible by employing a stratified sampling process. This is a process in which we first set the country weights of the portfolio equal to the country weights of the index. Then we set a bound of +/- 1% on the sector weights of each country portfolio relative to the sector weights of the respective country index. We strive to minimize turnover and prevent buying more liquidity than is available (bidding up the price).(2) (1) The S&P 500 Index is a market value-weighted index of 500 stocks designed to mimic the overall U.S. equity market's industry weightings. (2) Portfolio composition subject to change. (3) The Price-to-Earnings Ratio (P/E) is the valuation ratio of a company's current share price compared to its per-share earnings. 11 INTERNATIONAL EQUITY INDEX FUND GROWTH OF $10,000 INVESTMENT (as of March 31, 2006) (PERFORMANCE GRAPH)
MSCI International EAFE Equity Index Index (GDP (I Shares) Weighted) ------------- --------- 3/96 10000 10000 10298 10203 10205 10139 12/96 10407 10344 10455 10377 11693 11500 12003 11575 12/97 11342 10794 13333 12623 13976 13076 12161 11143 12/98 14747 13506 15024 13741 15667 14183 16561 14917 12/99 19269 17489 19154 17596 18327 16805 16763 15342 12/00 15982 14612 14036 12831 13842 12594 11703 10628 12/01 12230 11213 12334 11321 12153 11092 9658 8762 12/02 10210 9274 9379 8499 11262 10142 12263 11062 12/03 14349 12983 15033 13604 15060 13515 14928 13383 12/04 17371 15599 17196 15442 16902 15022 18738 16636 12/05 19588 17338 3/06 21506 19015
This chart assumes an initial hypothetical investment of $10,000 made on 3/31/96. Total return is based on net change in N.A.V. (net asset value) assuming reinvestment of distributions. Returns shown on this page include reinvestment of all dividends and other distributions. The Funds performance is compared to the Morgan Stanley Capital International, Europe, Australasia and Far East (MSCI EAFE Index- GDP Weighted) is a widely-recognized, market capitalization index that measures market equity performance based upon indices 21 foreign and developed counties. The country weighting of the Index is calculated using the gross domestic product of each of the various countries and then with respect of the market capitalization of the various companies operating in each country. The index is unmanaged and does not reflect the deduction of fees or taxes associated with a mutual fund, such as investment management and fund accounting fees. Investors cannot invest directly in an index, although they can invest in its underlying securities.
AVERAGE ANNUAL TOTAL RETURNS AS OF 3/31/06 (%) ---------------------------------------------- INTERNATIONAL EQUITY FUND INCEPTION DATE+ 1 YEAR 3 YEAR 5 YEAR 10 YEAR - ------------------------- --------------- ------ ------ ------ ------- A SHARES WITHOUT SALES 06/06/94 24.74 31.29 8.45 7.50 CHARGE WITH SALES 17.61 28.75 7.16 6.86 CHARGE* C SHARES WITHOUT CDSC 06/08/95 23.79 30.42 7.74 6.81 WITH CDSC* 22.79 30.42 7.74 6.81 I SHARES 06/06/94 25.06 31.87 8.91 7.96 23.14 30.79 8.19 6.64 MSCI EAFE INDEX (GDP WEIGHTED)
PAST PERFORMANCE DOES NOT GUARANTEE FUTURE RESULTS. THE PERFORMANCE DATA QUOTED REPRESENTS PAST PERFORMANCE AND CURRENT RETURNS MAY BE LOWER OR HIGHER. TOTAL RETURN FIGURES INCLUDE CHANGE IN SHARE PRICE, REINVESTMENT OF DIVIDENDS AND CAPITAL GAINS AND DO NOT REFLECT TAXES THAT A SHAREHOLDER WOULD PAY ON FUND DISTRIBUTIONS OR ON THE REDEMPTION OF FUND SHARES. THE INVESTMENT RETURN AND PRINCIPAL VALUE WILL FLUCTUATE SO THAT AN INVESTOR'S SHARES, WHEN REDEEMED MAY BE WORTH MORE OR LESS THAN THE ORIGINAL COST. FOR PERFORMANCE DATA CURRENT TO THE MOST RECENT MONTH END, VISIT OUR WEBSITE AT WWW.STICLASSICFUNDS.COM. * CLASS A SHARE PERFORMANCE REFLECTS THE MAXIMUM FRONT-END SALES CHARGE OF 5.75% AND CLASS C SHARES REFLECT THE MAXIMUM CDSC (CONTINGENT DEFERRED SALES CHARGE) OF 1.00% IN YEAR ONE ONLY. EFFECTIVE AUGUST 1, 2005, L SHARES WERE RENAMED C SHARES AND T SHARES WERE RENAMED I SHARES. SECTOR WEIGHTINGS (as of March 31, 2006)(1) as a percentage of total investments (PIE CHART) Consumer Discretionary 10.5% Consumer Staples 3.3% Energy 7.5% Financials 27.4% Health Care 7.3% Industrials 10.7% Information Technology 4.5% Materials 7.5% Short-Term Investment 12.1% Telecommunication Services 4.6% Utilities 4.6%
(1) PORTFOLIO COMPOSITION IS SUBJECT TO CHANGE 12 LARGE CAP RELATIVE VALUE FUND (FORMERLY GROWTH AND INCOME FUND) PORTFOLIO MANAGER - - Jeffrey E. Markunas, CFA INVESTMENT CONCERNS Equity securities (stocks) are more volatile and carry more risk than other forms of investments, including investments in high-grade fixed income securities. The net asset value per share of this Fund will fluctuate as the value of the securities in the portfolio changes. Value-based investments are subject to the risk that the broad market may not recognize their intrinsic value. MANAGEMENT DISCUSSION & ANALYSIS HOW DID THE FUND PERFORM AGAINST ITS BENCHMARK FOR THE PERIOD ENDED MARCH 31, 2006? For the year ended March 31, 2006, the Large Cap Relative Value Fund (I Shares) returned 12.76%, slightly behind the primary benchmark Russell 1000(R) Value Index return of 13.31%. (Because the previous benchmark, the S&P Barra Value Index, will be discontinued on June 30, 2006, the Russell 1000(R) Value Index will be used henceforth.) The Fund performed better than the S&P 500 return of 11.72%. WHAT FACTORS INFLUENCED THE FUND'S PERFORMANCE FOR THE PERIOD ENDED MARCH 31, 2006? The latest fiscal year evidenced a classic earnings-driven market environment with strong economic growth characterized by surging energy and commodities prices. These factors were extremely beneficial to technology, industrials, energy, telecommunications, and despite a steady rise in short term interest rates, to financials. These factors worked against consumer and non-cyclical sectors of the market, notably consumer spending, staples, healthcare, and utilities. This environment was quite positive for value-oriented and smaller company investing rather than for growth-oriented and larger company investing. Because the Fund entered 2005 with a pro-economic tilt, it was able to leverage these developments early in the year. However, the gradual reduction to this economic tilt in favor of select emerging valuation opportunities among underperforming sustainable growth stocks did start to impact Fund performance during the fourth fiscal quarter of the year. Fund overweightings in technology and industrials and underweightings in consumer spending and utilities helped results, while over weightings in staples and healthcare and underweightings in financials and energy detracted from results vs. the Russell 1000(R) Value Index. Stock selection was a plus during the June and December fiscal quarters, and suffered during the March 2006 fouth quarter as seasonal factors boosted the economy and the performance of the most economically-sensitive stocks. Overall for the year, stock selection in the energy and consumer spending sectors proved best, while selection in telecommunications, staples, and healthcare proved worst. This performance is hardly unusual as the Fund moves into new positions, typically on the early side, when the issue is out of favor with investors and susceptible to initial, short-term underperformance. Conversely, as our valuation discipline causes us to reduce or eliminate positions where the investment thesis and catalysts have been widely recognized and largely fulfilled, we become sellers into strength and momentum that can continue for awhile beyond our exit levels. Such was the case in the later part of fiscal 2006.(1) HOW DO YOU PLAN TO POSITION THE FUND, BASED ON MARKET CONDITIONS? Strong economic and corporate profit momentum underpinned healthy fiscal year results. A robust housing market and a resilient consumer carried the earlier part of the year, while a firming job market and accelerating capital spending maintained the momentum more recently. Investors embraced the notion of "stronger-longer" and seem increasingly convinced that economic momentum can carry the market again this year. While we must acknowledge that the durability and momentum of the economic and corporate profit cycles have exceeded our heretofore optimistic expectations, we nevertheless anticipate that slowbuilding headwinds will cause both cycles to decelerate in the year ahead, setting the stage for an undershoot to lofty consensus expectations in 2007. Therefore, we have been and are continuing to reshape the Fund for a "stronger but not too much longer" market environment, more through the specific issues held rather than through material sector weight adjustments. Also, we adhere to the belief that risk continues to be relatively underpriced and underappreciated across the equity market, and that more discrimination will emerge as economic momentum slows. Thus, better quality and more sustainable future growth when available at a discount in the market, is where the Fund has been tending to migrate. Finally, the tsunami of global liquidity should continue to influence and sustain a rabid merger and acquisition cycle, and could benefit the Fund and its disciplined investors who focus on undervalued companies with healthy and improving fundamentals.(1) (1) Portfolio composition subject to change. 13 LARGE CAP RELATIVE VALUE FUND GROWTH OF $10,000 INVESTMENT (as of March 31, 2006) (PERFORMANCE GRAPH)
Large Cap Relative Value Fund S&P 500/BARRA Russell 1000 (I Shares) Value Index S&P 500 Index Value Index ------------------ ------------- ------------- ------------ 3/96 10000 10000 10000 10000 10417 10205 10451 10172 10601 10474 10771 10468 12/96 11349 11466 11673 11512 11346 11668 11978 11807 13319 13357 14074 13548 14524 14581 15132 14897 12/97 14492 14904 15567 15563 16324 16626 17739 17377 16415 16713 18325 17455 14714 14554 16502 15433 12/98 17129 17092 20017 17995 17581 17579 21014 18253 19314 19477 22495 20311 17930 17680 21091 18322 12/99 19557 19266 24229 19317 19756 19311 24785 19410 19488 18482 24126 18500 20471 20111 23893 19955 12/00 19837 20438 22023 20672 18320 19104 19412 19462 19217 19946 20548 20412 17134 16714 17532 18177 12/01 18527 18045 19406 19517 18878 18284 19459 20315 16921 16338 16852 18585 13800 12995 13941 15096 12/02 14888 14282 15116 16487 14200 13495 14640 15685 16370 16038 16895 18395 16667 16445 17342 18775 12/03 19077 18822 19454 21439 19655 19452 19784 22088 19992 19607 20123 22282 19835 19811 19746 22626 12/04 21791 21778 21569 24975 22146 21249 21105 24996 22465 21798 21394 25415 23209 22548 22165 26402 12/05 23880 23158 22628 26736 3/06 24971 24413 23580 28323
This chart assumes an initial hypothetical investment of $10,000 made on 3/31/96. Total return is based on net change in N.A.V.(net asset value) assuming reinvestment of distributions. Returns shown on this page include reinvestment of all dividends and other distributions. The Funds has changed its standardized benchmark because the previous benchmark, the S&P 500/BARRA Value Index, will be discontinued on June 30, 2006, the Russell 1000(R) Value Index will be used henceforth Index. The Russell 1000(R) Value Index is comprised of the 1000 securities found in the Russell universe with a less-than-average growth orientation. Companies in this index generally have low price-to-book and price-to-earning ratios, higher dividend yields, and lower forecasted growth values. Investors cannot invest directly in an index. The S&P 500/BARRA Value Index is comprised of securities in the S&P 500 Index that have lower price-to-book ratios. The S&P 500 is a market value-weighted index of 500 stocks designed to mimic the overall U.S. equity market's industry weightings. The index is unmanaged and does not refect the deduction of fees or taxes associated with a mutual fund, such as investment management and fund accounting fees. Investors cannot invest directly in an index, although they can invest in its underlying securities.
AVERAGE ANNUAL TOTAL RETURNS AS OF 3/31/06(%) ---------------------------------- LARGE CAP RELATIVE VALUE FUND INCEPTION DATE 1 YEAR 3 YEAR 5 YEAR 10 YEAR - ----------------------------- -------------- ------ ------ ------ ------- A SHARES WITHOUT SALES CHARGE 05/07/93 12.50 20.46 6.18 9.44 WITH SALES CHARGE* 6.03 18.11 4.92 8.79 C SHARES WITHOUT CDSC 04/05/95 11.69 19.57 5.39 8.63 WITH CDSC* 10.69 19.57 5.39 8.63 I SHARES 09/26/92 12.76 20.70 6.39 9.58 RUSSELL 1000(R) VALUE INDEX 13.31 21.77 7.79 10.97 S&P 500/BARRA VALUE INDEX 14.89 21.85 5.03 9.34 S&P 500 INDEX 11.72 17.21 3.97 8.95
PAST PERFORMANCE DOES NOT GUARANTEE FUTURE RESULTS. THE PERFORMANCE DATA QUOTED REPRESENTS PAST PERFORMANCE AND CURRENT RETURNS MAY BE LOWER OR HIGHER. TOTAL RETURN FIGURES INCLUDE CHANGE IN SHARE PRICE, REINVESTMENT OF DIVIDENDS AND CAPITAL GAINS AND DO NOT REFLECT TAXES THAT A SHAREHOLDER WOULD PAY ON FUND DISTRIBUTIONS OR ON THE REDEMPTION OF FUND SHARES. THE INVESTMENT RETURN AND PRINCIPAL VALUE WILL FLUCTUATE SO THAT AN INVESTOR'S SHARES, WHEN REDEEMED MAY BE WORTH MORE OR LESS THAN THE ORIGINAL COST. FOR PERFORMANCE DATA CURRENT TO THE MOST RECENT MONTH END, VISIT OUR WEBSITE AT WWW.STICLASSICFUNDS.COM. * CLASS A SHARE PERFORMANCE REFLECTS THE MAXIMUM FRONT-END SALES CHARGE OF 5.75% AND CLASS C SHARES REFLECT THE MAXIMUM CDSC (CONTINGENT DEFERRED SALES CHARGE) OF 1.00% IN YEAR ONE ONLY. EFFECTIVE AUGUST 1, 2005, L SHARES WERE RENAMED C SHARES AND T SHARES WERE RENAMED I SHARES. SECTOR WEIGHTINGS (as of March 31, 2006)(1) as a percentage of total investments (PIE CHART) Consumer Discretionary 7.6% Consumer Staples 7.9% Energy 8.7% Financials 20.3% Health Care 8.9% Industrials 8.5% Information Technology 10.2% Materials 2.3% Money Market Funds 1.5% Short-Term Investment 17.3% Telecommunication Services 3.5% Utiliites 3.3%
(1) PORTFOLIO COMPOSITION IS SUBJECT TO CHANGE 14 LARGE CAP VALUE EQUITY FUND (FORMERLY VALUE INCOME STOCK FUND) PORTFOLIO MANAGER - - Mills Riddick, CFA INVESTMENT CONCERNS Equity securities (stocks) are more volatile and carry more risk than other forms of investments, including investments in high-grade fixed income securities. The net asset value per share of this Fund will fluctuate as the value of the securities in the portfolio changes. Value-based investments are subject to the risk that the broad market may not recognize their intrinsic value. MANAGEMENT DISCUSSION & ANALYSIS HOW DID THE FUND PERFORM AGAINST ITS BENCHMARK FOR THE PERIOD ENDED MARCH 31, 2006? For the 12 month period ended March 31, 2006, the Large Cap Value Equity Fund returned 11.93% (I Shares) versus 13.31% for the benchmark the Russell 1000(R) Value Index. The primary reason for the underperformance was the Fund's underweighting in the Financials sector including REITs. Financials were the largest contributor to performance for the year as investors anticipated the eventual end to Fed tightening and continued to be enamored with the real estate markets. Some other areas that hurt relative performance were our underweight in Metals and Mining, which performed magnificently due to robust global demand, in Oil Service stocks, which continue to benefit from increased capital spending by the oil majors and Tobacco stocks, which experienced good upside in light of improving legal conditions. This was partially offset by our large overweighting in Industrials which was the Fund's second largest contributor to performance.(1) WHAT FACTORS INFLUENCED THE FUND'S PERFORMANCE FOR THE PERIOD ENDED MARCH 31, 2006? As previously noted the Fund was a major beneficiary of our large overweight in Industrial stocks. Rockwell Automation, MSC Industrial, Honeywell, Emerson Electric and Illinois Tool were all significant contributors primarily due to their strong earnings reports caused by good demand and substantial operating leverage. The Fund benefited as well from Financials positions like Bear Stearns, Bank of New York, J.P. Morgan and Merrill Lynch, which posted solid returns against the positive backdrop of good economic growth and a fairly benign inflationary environment. The Fund was hurt by some poor stock picks such as Gannett which suffered under the weight of an extremely poor advertising market and Mattel which was smothered by rapidly escalating raw materials costs and poor Barbie doll sales. Also, the Fund is still experiencing a negative quality bias that started in 2003 as lower quality stocks continue to outperform their higher quality counterparts. The Fund has roughly two-thirds of its positions in B+ or higher rated companies.(1) HOW DO YOU PLAN TO POSITION THE FUND, BASED ON MARKET CONDITIONS? The Fund's returns seemingly have turned the corner a bit, putting up better relative performance since October of last year. This is due to better stock selection and, at least in a small part, our focus on trying to get Energy and Utilities right this time, taking opportunities to add to these positions in sell-offs while trimming positions of cyclically leveraged raw materials users as they hit price targets. There are still significant arguments to be made for an economic slowdown, such as higher oil prices, Fed tightening, weaker housing and the inverted yield curve. The consumer seems to have stalled a bit under this weight but corporations are still chugging along. The market direction still remains inextricably tied to the Fed.(1) The Fund is underweight Consumer Discretionary stocks because we are concerned about some potentially significant forces conspiring against the consumer over the near-term namely, more restrictive mortgage lending and high gasoline and heating oil prices. The Fund has a large position in Federated Dept Stores where there are ample other positive catalysts to pique our interest such asset sales and expense reduction. The Fund is overweight Consumer Staples with positions like Colgate and PepsiCo that exhibit not only strong financial characteristics but solid fundamentals as well. The Fund is underweight Energy but we are reassessing our normalized oil price forecast in light of ongoing market dynamics and we are prepared to add positions on a significant pullback. Currently the Fund owns integrated oil companies with significant refining assets such as Marathon Oil. We feel that the refining space has more upside given the very tight capacity outlook for the industry. The Fund is slightly overweight in Materials but has been trimming back some positions as they rally off their Q3 lows. We like stocks such as DuPont that have huge free cash flows, some pricing power and tremendous balance sheet flexibility to raise dividends and repurchase stock. The Fund is underweight Financials where we have sold most of the insurance and spread-based stocks due to price appreciation, but hold significant positions in capital market focused companies like Bear Stearns and Bank of New York that directly benefit from the heightened market activity. The Fund is overweight Industrials while maintaining an equal weight in Technology. Industrials we like exhibit strong balance sheets and good operating leverage like Illinois Tool. The Fund is overweight Healthcare. Pharmaceutical and hospital companies are attractive from a valuation standpoint and we are more confident that fundamentals have bottomed and will soon be turning more positive. The Fund is underweight Telecommunications and underweight Utilities but we will look for utility stock opportunities on price pullbacks. Given our ongoing reassessment of normalized oil and gas we would like to be more involved with companies that have good exposure to cheap sources of merchant generation if valuations make sense.(1) We believe profit growth will continue to slow but stay positive. In this low growth environment, higher quality companies with well defined dividend policies should do well since dividend yield will become a more important source of total return. Also the valuation case for highquality stocks is quite compelling and they have historically performed well when the profit cycle is decelerating like that of today's market. These are the very stocks that are well represented in the Fund.(1) (1) Portfolio composition subject to change. 15 LARGE CAP VALUE EQUITY FUND GROWTH OF $10,000 INVESTMENT (as of March 31, 2006) (PERFORMANCE GRAPH)
Large Cap Value S&P Equity Fund 500/BARRA Russell 1000 (I Shares) Value Index Value Index --------------- ----------- ------------ 3/96 10000 10000 10000 10377 10205 10172 10706 10474 10468 12/96 11347 11466 11512 11681 11668 11807 13119 13357 13548 14320 14581 14897 12/97 14420 14904 15563 16150 16626 17377 15543 16712 17455 14063 14554 15433 12/98 15946 17092 17995 15692 17579 18253 18101 19477 20311 15904 17680 18322 12/99 15478 19266 19317 14884 19311 19410 14499 18482 18500 15458 20111 19955 12/00 17158 20438 20672 16348 19104 19462 17291 19946 20412 15648 16714 18177 12/01 16994 18045 19517 17694 18284 20315 16253 16338 18585 13019 12995 15096 12/02 14365 14282 16487 13368 13495 15685 15349 16038 18395 15771 16445 18775 12/03 17762 18822 21439 18331 19452 22088 18755 19607 22282 18875 19811 22626 12/04 20441 21778 24975 20460 21249 24996 20310 21798 25415 20690 22548 26402 12/05 21196 23158 26736 3/06 22900 24413 28323
This chart assumes an initial hypothetical investment of $10,000 made on 3/31/96. Total return is based on net change in N.A.V. (net asset value) assuming reinvestment of distributions. Returns shown on this page include reinvestment of all dividends and other distributions. The Funds performance is compared to Russell 1000(R) Value Index and the S&P 500/BARRA Value Index. The Russell 1000(R) Value Index is comprised of the 1000 securities found in the Russell universe with a less-than-average growth orientation. Companies in this index generally have low price-to-book and price-to-earning ratios, higher dividend yields, and lower forecasted growth values. The S&P 500/ BARRA Value Index is comprised of securities in the S&P 500 Index that have lower price-to-book ratios. The index is unmanaged and does not reflect the deduction of fees or taxes associated with a mutual fund, such as investment management and fund accounting fees. Investors cannot invest directly in an index, although they can invest in its underlying securities.
AVERAGE ANNUAL TOTAL RETURNS AS OF 3/31/06 (%) ---------------------------------- LARGE CAP VALUE EQUITY FUND INCEPTION DATE+ 1 YEAR 3 YEAR 5 YEAR 10 YEAR - --------------------------- --------------- ------ ------ ------ ------- A SHARES WITHOUT SALES CHARGE 02/17/93 11.61 19.26 6.61 8.23 WITH SALES CHARGE* 5.16 16.91 5.35 7.59 C SHARES WITHOUT CDSC 06/01/95 10.86 18.38 5.82 7.45 WITH CDSC* 9.86 18.38 5.82 7.45 I SHARES 10/31/89 11.93 19.65 6.97 8.64 RUSSELL 1000(R) VALUE INDEX 13.31 21.77 7.79 10.97 S&P 500/BARRA VALUE INDEX 14.89 21.85 5.03 9.34
PAST PERFORMANCE DOES NOT GUARANTEE FUTURE RESULTS. THE PERFORMANCE DATA QUOTED REPRESENTS PAST PERFORMANCE AND CURRENT RETURNS MAY BE LOWER OR HIGHER. TOTAL RETURN FIGURES INCLUDE CHANGE IN SHARE PRICE, REINVESTMENT OF DIVIDENDS AND CAPITAL GAINS AND DO NOT REFLECT TAXES THAT A SHAREHOLDER WOULD PAY ON FUND DISTRIBUTIONS OR ON THE REDEMPTION OF FUND SHARES. THE INVESTMENT RETURN AND PRINCIPAL VALUE WILL FLUCTUATE SO THAT AN INVESTOR'S SHARES, WHEN REDEEMED MAY BE WORTH MORE OR LESS THAN THE ORIGINAL COST. FOR PERFORMANCE DATA CURRENT TO THE MOST RECENT MONTH END, VISIT OUR WEBSITE AT WWW.STICLASSICFUNDS.COM. * CLASS A SHARE PERFORMANCE REFLECTS THE MAXIMUM FRONT-END SALES CHARGE OF 5.75% AND CLASS C SHARES REFLECT THE MAXIMUM CDSC (CONTINGENT DEFERRED SALES CHARGE) OF 1.00% IN YEAR ONE ONLY. EFFECTIVE AUGUST 1, 2005, L SHARES WERE RENAMED C SHARES AND T SHARES WERE RENAMED I SHARES. + The performance quoted represents past performance of the SunTrust Bank's internally managed common trust fund, adjusted for fees and expenses for periods prior to February 12, 1993, and past performance of the I Shares for the periods between February 12, 1993 and inception of the A and C Shares on February 17, 1993 and June 1, 1995, respectively. The common trust fund was not registered under the 1940 Act and therefore was not subject to certain investment restrictions which may have adversely affected performance. SECTOR WEIGHTINGS (as of March 31, 2006)(1) as a percentage of total investments (PIE CHART) Consumer Discretionary 5.2% Consumer staples 6.2% Energy 10.6% Financials 18.9% Health Care 8.1% Industrials 17.5% Information Technology 3.7% Repurchase Agreement 4.9% Materials 5.0% Short-Term Investment 12.2% Telecommunications Services 3.6% Utilities 4.1%
(1) PORTFOLIO COMPOSITION IS SUBJECT TO CHANGE 16 MID-CAP EQUITY FUND PORTFOLIO MANAGER - - Chad Deakins, CFA INVESTMENT CONCERNS Mid capitalization funds typically carry additional risks since smaller companies generally have a higher risk of failure. Equity securities (stocks) are more volatile and carry more risk than other forms of investments, including investments in high-grade fixed income securities. The net asset value per share of this Fund will fluctuate as the value of the securities in the portfolio changes. MANAGEMENT DISCUSSION & ANALYSIS HOW DID THE FUND PERFORM AGAINST ITS BENCHMARK FOR THE PERIOD ENDED MARCH 31, 2006? The Mid Cap Equity Fund returned 19.68% (I Shares) for the 12 month period ended March 31, 2006. The Russell Midcap(R) Index returned 21.54% for the same period. The Fund trailed its benchmark by 186 bps (1.86%) for the period. For the year, the sectors contributing the most to the Fund's performance were Energy and Information Technology. The sector detracting the most from performance was Industrials. This underperformance was primarily due to the fund holding Ryder, a stock that struggled for the first half of the year, and the Fund's relative underexposure to the Railroad stocks. Telecommunication Services also hurt the Fund's performance primarily due to the ascent of stocks that we deemed speculative in nature.(1) WHAT FACTORS INFLUENCED THE FUND'S PERFORMANCE FOR THE PERIOD ENDED MARCH 31, 2006? Stock selection was negative in six of the ten sectors, strongest in Energy and Information Technology and weakest in Industrials and Consumer Discretionary. The stocks adding the most to performance were: MEMC Electronic Materials, Corning, Humana, Hughes Supply, Marathon, and Valero. The stocks in the fund that detracted the most from performance were: Pilgrim's Pride, Scholastic, Abercrombie & Fitch, Lyondell, and Standard Pacific. Since the benchmark was up over 21% for the year with each sector returning at least 7%, cash was also a drag on the fund. As the year progressed, the market leadership went from the Energy and Utility sectors to the Industrial and Materials sectors.(1) HOW DO YOU PLAN TO POSITION THE FUND, BASED ON MARKET CONDITIONS? In our opinion, mid cap stocks are still an attractive space for investment. Small cap managers are capacity constrained and may be forced to drift up into the Mid Cap category for liquidity reasons. Large cap managers also often buy mid cap stocks to get exposure to higher earnings growth.(1) We are currently more focused on selecting stocks with superior earnings growth than on valuation at this point in the market cycle. From a sector standpoint, we believe Industrials and Materials will continue to provide leadership while stocks more consumer-oriented may lag.(1) The primary focus of the Fund is to identify the best stocks within each sector, not on sector allocation. The research process involves segmenting each stock into its appropriate industry group/sector and focusing on the drivers of performance in each group/sector. This allows us to focus on the important factors for each sector. We supplement this process with fundamental due-diligence before any stock is purchased. This approach blends growth dynamics with valuation to select securities with favorable reward versus risk characteristics. We believe the resulting portfolio is positioned to do well within the Mid Cap Core universe.(1) (1) Portfolio composition subject to change. 17 MID-CAP EQUITY FUND GROWTH OF $10,000 INVESTMENT (as of March 31, 2006) (PERFORMANCE GRAPH)
Mid-Cap Equity Russell Fund (I Shares) MidCap Index --------------- ------------ 3/96 10000 10000 10195 10282 10562 10604 12/96 11121 11224 10800 11132 12077 12642 13794 14321 12/97 13483 14480 14662 16045 14380 15803 11510 13460 12/98 14357 15942 13976 15867 15291 17590 13720 16078 12/99 16674 18849 18564 20749 18305 19813 18552 21162 12/00 16180 20403 14167 18262 16713 20003 13441 16431 12/01 16565 19256 15484 20073 13560 18157 11650 14955 12/02 11798 16139 11339 15758 12938 18635 13470 19834 12/03 15218 22605 15760 23767 15779 24112 15759 23909 12/04 17814 27175 17995 27106 18903 28239 20006 29911 12/05 20298 30613 3/06 21537 32944
This chart assumes an initial hypothetical investment of $10,000 made on 3/31/96. Total return is based on net change in N.A.V. (net asset value) assuming reinvestment of distributions. Returns shown on this page include reinvestment of all dividends and other distributions. The Funds performance is compared to the Russell Midcap(R) Index a widely recognized index that measures the performance of the 800 smallest companies in the Russell universe. The index is unmanaged and does not reflect the deduction of fees or taxes associated with a mutual fund, such as investment management and fund accounting fees. Investors cannot invest directly in an index, although they can invest in its underlying securities.
AVERAGE ANNUAL TOTAL RETURNS AS OF 3/31/06 (%) ---------------------------------- MID-CAP EQUITY FUND INCEPTION DATE 1 YEAR 3 YEAR 5 YEAR 10 YEAR - ------------------- -------------- ------ ------ ------ ------- A SHARES WITHOUT SALES CHARGE 01/31/94 19.32 23.33 8.29 7.51 WITH SALES CHARGE* 12.42 20.93 7.01 6.88 C SHARES WITHOUT CDSC 06/05/95 18.44 22.56 7.61 6.85 WITH CDSC* 17.44 22.56 7.61 6.85 I SHARES 02/02/94 19.68 23.84 8.74 7.97 RUSSELL MIDCAP(R) INDEX 21.54 27.87 12.52 12.66
PAST PERFORMANCE DOES NOT GUARANTEE FUTURE RESULTS. THE PERFORMANCE DATA QUOTED REPRESENTS PAST PERFORMANCE AND CURRENT RETURNS MAY BE LOWER OR HIGHER. TOTAL RETURN FIGURES INCLUDE CHANGE IN SHARE PRICE, REINVESTMENT OF DIVIDENDS AND CAPITAL GAINS AND DO NOT REFLECT TAXES THAT A SHAREHOLDER WOULD PAY ON FUND DISTRIBUTIONS OR ON THE REDEMPTION OF FUND SHARES. THE INVESTMENT RETURN AND PRINCIPAL VALUE WILL FLUCTUATE SO THAT AN INVESTOR'S SHARES, WHEN REDEEMED MAY BE WORTH MORE OR LESS THAN THE ORIGINAL COST. FOR PERFORMANCE DATA CURRENT TO THE MOST RECENT MONTH END, VISIT OUR WEBSITE AT WWW.STICLASSICFUNDS.COM. * CLASS A SHARE PERFORMANCE REFLECTS THE MAXIMUM FRONT-END SALES CHARGE OF 5.75% AND CLASS C SHARES REFLECT THE MAXIMUM CDSC (CONTINGENT DEFERRED SALES CHARGE) OF 1.00% IN YEAR ONE ONLY. EFFECTIVE AUGUST 1, 2005, L SHARES WERE RENAMED C SHARES AND T SHARES WERE RENAMED I SHARES. SECTOR WEIGHTINGS (as of March 31, 2006)(1) as a percentage of total investments (PIE CHART) Consumer Discretionary 10.8% Consumer Staples 3.0% Energy 6.3% Financials 13.3% Health Care 10.1% Industrials 10.8% Information Technology 12.3% Materials 3.8% REITS 4.2% Repurchase Agreements 2.6% Short-Term Investments 17.7% Telecommunication Services 0.4% Utilities 4.7%
(1) PORTFOLIO COMPOSITION IS SUBJECT TO CHANGE 18 MID-CAP VALUE EQUITY FUND PORTFOLIO MANAGER - - Don Wordell, CFA INVESTMENT CONCERNS Mid capitalization funds typically carry additional risks since smaller companies generally have a higher risk of failure. Value-based investments are subject to the risk that the broad market may not recognize their intrinsic value. Equity securities (stocks) are more volatile and carry more risk than other forms of investments, including investments in high-grade fixed income securities. The net asset value per share of this Fund will fluctuate as the value of the securities in the portfolio changes. MANAGEMENT DISCUSSION & ANALYSIS HOW DID THE FUND PERFORM AGAINST ITS BENCHMARK FOR THE PERIOD ENDED MARCH 31, 2006? The Mid-Cap Value Equity Fund returned 19.49% (I Shares), which was behind the Russell Midcap(R) Value Index by 81 basis points (0.81%) for the trailing 12 month period ended March 31, 2006. The Fund's results were ahead of the Lipper Mid Cap Value Average(2) which returned 16.97% over the same time period, outperforming the peer group by 252 basis points (2.52%). The benchmark was positively impacted by the large weighting and strong performance of REITs which returned 43.8% over the same time period. WHAT FACTORS INFLUENCED THE FUND'S PERFORMANCE FOR THE PERIOD ENDED MARCH 31, 2006? The Fund's performance was driven by investments within the Industrial, Energy and Technology sectors. In conducting a bottom-up look at corporate business activity, our research concluded that we are on the front-end of a multi-year capital expenditure cycle. This is evident within the commercial aerospace industry and refining industry. The government is also participating with an increase in the Federal Highway Spending Bill. Within the Industrial sector, investments in Rockwell Automation (ROK) + 29.0%, a global provider of industrial automation tools and MSC Industrial Direct Co. (MSM) + 85.9%, a direct marketer of a broad range of industrial products that satisfy maintenance and repair needs, drove the strong performance. The Energy holdings focused on the coal and oil service sectors. Two of our best ideas were Foundation Coal inc. (FCL) + 75.9%, a large coal producer with operations in all major coal basins in the United States, and Tidewater Inc. (TDW) + 44.1%, a provider of offshore supply vessels that service major E&P operators. The strong performance in the Technology sector was due to Harris Corp. (HRS) + 45.9%, an international communication equipment company, and Tektronix Inc. (TEK) + 46.9%, a manufacturer and provider of measurement and monitoring solutions to various industries.(1) HOW DO YOU PLAN TO POSITION THE FUND, BASED ON MARKET CONDITIONS? The market seems to be grappling with conflicting economic and inflation data to determine the appropriate level of short-term interest rates. We expect the global economic backdrop to remain healthy. We continue our overweight of Industrials because improved balance sheets and strong profits have given companies the ability to accelerate new capital investment. The Energy sector continues to be the focus for many investors. We believe that the long-term supply/demand characteristics of the energy complex are tighter than most analysts are anticipating. Due to the expectation that the commodity price will be higher for longer, the Fund remains overweight Energy. Energy price driven inflation and valuation concerns cause us to remain underweight REITs and Utilities. (1) Portfolio composition subject to change. (2) The Lipper Mid Cap Value Funds Average is comprised of mutual funds that, by portfolio practice, invest at least 75% of their equity assets in companies with market capitalizations (on a three-year weighted basis) less than 300% of the dollar-weighted median market capitalization of the middle 1,000 securities of the S&P SuperComposite 1500 Index. Mid-cap value funds typically have a below-average price-to-earnings ratio, price-to-book ratio, and three-year sales-per-share growth value, compared to the S&P MidCap 400 Index. 19 MID-CAP VALUE EQUITY FUND GROWTH OF $10,000 INVESTMENT (as of March 31, 2006) (PERFORMANCE GRAPH)
Mid-Cap Value Russell Equity Midcap Fund Value (I Shares) Index ---------- ------- 11/30/2001 10000 10000 12/01 10515 10415 11225 11237 10079 10712 7753 8789 12/02 8280 9410 7599 9029 8950 10644 9406 11276 12/03 10723 12992 11355 13687 11676 13924 11585 14165 12/04 12890 16072 12836 16197 12969 16958 13616 17866 12/05 14110 18105 3/06 15337 19484
This chart assumes an initial hypothetical investment of $10,000 made on 11/31/01. Total return is based on net change in N.A.V. (net asset value) assuming reinvestment of distributions. Returns shown on this page include reinvestment of all dividends and other distributions. The Funds performance is compared to the Russell Midcap Value Index a widely recognized index that measures the performance of the companies in the Russell universe with lower price-to-earnings ratios and lower forecasted growth values. The index is unmanaged and does not reflect the deduction of fees or taxes associated with a mutual fund, such as investment management and fund accounting fees. Investors cannot invest directly in an index, although they can invest in its underlying securities.
AVERAGE ANNUAL TOTAL RETURNS AS OF 3/31/06 (%) ---------------------------------------------- MID-CAP VALUE EQUITY FUND INCEPTION DATE 1 YEAR 3 YEAR SINCE INCEPTION - ------------------------- -------------- ------ ------ --------------- A SHARES WITHOUT SALES CHARGE 10/27/03 19.09 -- 20.33 WITH SALES CHARGE* 12.21 -- 17.44 C SHARES WITHOUT CDSC 11/30/01 18.47 25.49 9.60 WITH CDSC* 17.47 25.49 9.60 I SHARES 11/30/01 19.49 26.38 10.38 RUSSELL MIDCAP(R) VALUE INDEX 20.30 29.23 --
PAST PERFORMANCE DOES NOT GUARANTEE FUTURE RESULTS. THE PERFORMANCE DATA QUOTED REPRESENTS PAST PERFORMANCE AND CURRENT RETURNS MAY BE LOWER OR HIGHER. TOTAL RETURN FIGURES INCLUDE CHANGE IN SHARE PRICE, REINVESTMENT OF DIVIDENDS AND CAPITAL GAINS AND DO NOT REFLECT TAXES THAT A SHAREHOLDER WOULD PAY ON FUND DISTRIBUTIONS OR ON THE REDEMPTION OF FUND SHARES. THE INVESTMENT RETURN AND PRINCIPAL VALUE WILL FLUCTUATE SO THAT AN INVESTOR'S SHARES, WHEN REDEEMED MAY BE WORTH MORE OR LESS THAN THE ORIGINAL COST. FOR PERFORMANCE DATA CURRENT TO THE MOST RECENT MONTH END, VISIT OUR WEBSITE AT WWW.STICLASSICFUNDS.COM. * CLASS A SHARE PERFORMANCE REFLECTS THE MAXIMUM FRONT-END SALES CHARGE OF 5.75% AND CLASS C SHARES REFLECT THE MAXIMUM CDSC (CONTINGENT DEFERRED SALES CHARGE) OF 1.00% IN YEAR ONE ONLY. EFFECTIVE AUGUST 1, 2005, L SHARES WERE RENAMED C SHARES AND T SHARES WERE RENAMED I SHARES. SECTOR WEIGHTINGS (as of March 31, 2006)(1) as a percentage of total investments (PIE CHART) Consumer Discretionary 10.6% Consumer Staples 4.8% Energy 7.0% Financials 15.1% Health Care 4.4% Industrials 13.7% Information Technology 5.5% Materials 6.8% Money Market Funds 3.6% REITS 1.7% Short-Term Investment 20.3% Utilities 6.5%
(1) PORTFOLIO COMPOSITION IS SUBJECT TO CHANGE 20 QUALITY GROWTH STOCK FUND (FORMERLY TAX SENSITIVE GROWTH STOCK FUND) PORTFOLIO MANAGER - - Parker W. Thomas, Jr. INVESTMENT CONCERNS The fund's income may be subject to certain state and local taxes and, depending on your tax status, the federal alternative minimum tax. Equity securities (stocks) are more volatile and carry more risk than other forms of investments, including investments in high-grade fixed income securities. The net asset value per share of this Fund will fluctuate as the value of the securities in the portfolio changes. MANAGEMENT DISCUSSION & ANALYSIS HOW DID THE FUND PERFORM AGAINST ITS BENCHMARK FOR THE PERIOD ENDED MARCH 31, 2006? The Quality Growth Stock Fund had a 7.54% (I Shares) return for the 12 months ended March 31, 2006 compared with an 11.72% return for the S&P 500. The reasons for this underperformance are shown below.(1) - The holdings in the Energy Sector underperformed the Energy Sector of the S&P 500. The smaller exploration and production companies had returns in excess of 20%, while the larger integrated oils had a more modest 10% price gain. - The stocks in the Technology Sector underperformed their S&P 500 counterparts. In particular, the performance of Dell and Intel hurt overall results as they were down 21.7% and 18.1%, respectively. - The high quality of the companies held in the Fund turned out to be a drag on performance. Thirty percent of the Fund, as of the beginning of the year, had the top rating from Value Line for financial strength and the stocks of these companies had an average price change of 2.0%. - The Finance Sector, which had a return of 17.4%, was under-weighted in the Fund. - The Health Care Sector, which had a return of 8.4%, was over-weighted in the Fund. WHAT FACTORS INFLUENCED THE FUND'S PERFORMANCE FOR THE PERIOD ENDED MARCH 31, 2006? The last year has again seen the value equity style outperform the growth equity style. For the 12 months ended March 31, 2006, the S&P 500 BARRA/Value Index(2) had a 14.89% return while the S&P 500 BARRA/Growth Index(2) return was 8.50%. This trend has now been in place for three years as the annualized return for the Value Index is 21.85% compared with the 12.71% annualized return for the Growth Index. Over long periods of time, the returns on these two indexes have been very similar. (For the last ten years, the Value Index has averaged 9.34% and the Growth Index 8.12%.) Returns on large cap stocks have continued to lag returns on mid and small cap stocks. For the 12 months ended March 31, 2006, the S&P 100 Stock Index (an index of the largest 100 stocks in the S&P 500 Index) had a return of 6.9% while the S&P Mid Cap(2) and Small Cap Indices(2) had returns of 21.62% and 24.07%, respectively. The spreads in price-earnings ratios(3) (P/E) between stocks of quality companies and stocks of average to below average quality companies continued to narrow. The current spread is negative. That is, the P/Es of high quality companies are now lower than the P/Es of average to below average companies. Historically, this relationship has indicated a good time to buy high quality companies. HOW DO YOU PLAN TO POSITION THE FUND, BASED ON MARKET CONDITIONS? We continue to believe that stocks of quality companies with superior growth prospects will do well over time. The gap in return between value stocks and growth stocks has been large for the last three years as value stocks have outperformed growth stocks by about 9% per year. (However, for the three years ended December 31, 1999, growth stocks outperformed value stocks by some 16% per year.) In our opinion, it is time for the growth strategy to start doing well. In general, a large portion of the Fund will be invested in large capitalization stocks, but we will also own some mid-cap stocks, particularly in the Technology area. This is due to a growing number of companies carving a niche in a specialized area of technology. In addition, mid sized companies are often more focused and flexible than large companies.(1) The Fund's strategy for managing risk is to have a sizable portion in consistent growth companies and also a sizable portion in companies which are more exposed to the growth in the economy as a whole; to have representation in mega, large and medium market cap companies, but with an overall market cap that exceeds $50 billion; and to have a portfolio of 50 - 70 stocks so as to reduce the stock market risk associated with the misfortunes of any one company.(1) (1) Portfolio composition subject to change. (2) The S&P 100 Index is composed of 100 widely held common stocks listed on the New York Stock Exchange, American Stock Exchange and Over-The-Counter markets. The S&P MidCap 400 Index is comprised of 400 domestic stocks chosen for market size (median market capitalization of $676 million), liquidity and industry group representation. The S&P SmallCap 600 Index is comprised of 600 domestic small capitalization stocks chosen for market size, liquidity and industry group representation. (3) Price-to-Earnings Ratio (P/E) is a valuation ratio of a company's current share price compared to its per-share earnings. 21 QUALITY GROWTH STOCK FUND GROWTH OF $10,000 INVESTMENT (as of March 31, 2006) (PERFORMANCE GRAPH)
Quality Growth Stock Fund (I Shares) S&P 500 Index -------------------- ------------- 3/96 10000 10000 10316 10451 10719 10771 12/96 11592 11673 11936 11978 14096 14074 14933 15132 12/97 14929 15567 16653 17739 17102 18325 15396 16502 12/98 19666 20017 21373 21014 23120 22495 21752 21091 12/99 24531 24229 25548 24785 24653 24126 24266 23893 12/00 21552 22023 18064 19412 18766 20548 15879 17532 12/01 17627 19406 17763 19459 15607 16852 13079 13941 12/02 13745 15116 13616 14640 14841 16895 15163 17342 12/03 16653 19454 16832 19784 17011 20123 16588 19746 12/04 17792 21569 17321 21105 17460 21394 18035 22165 12/05 18229 22628 3/06 18626 23580
This chart assumes an initial hypothetical investment of $10,000 made on 3/31/96 Total return is based on net change in N.A.V. (net asset value) assuming reinvestment of distributions. Returns shown on this page include reinvestment of all dividends and other distributions. The Funds performance is compared to the S&P 500 Index a market value-weighted index of 500 stocks designed to mimic the overall U.S. equity market's industry weightings. The index is unmanaged and does not reflect the deduction of fees or taxes associated with a mutual fund, such as investment management and fund accounting fees. Investors cannot invest directly in an index, although they can invest in its underlying securities.
AVERAGE ANNUAL TOTAL RETURNS AS OF 3/31/06 (%) ---------------------------------- QUALITY GROWTH STOCK FUND INCEPTION DATE+ 1 YEAR 3 YEAR 5 YEAR 10 YEAR - ------------------------- --------------- ------ ------ ------ ------- A SHARES WITHOUT SALES CHARGE 10/14/03 7.21 10.70 0.45 6.33 WITH SALES CHARGE* 1.02 8.54 -0.74 5.70 C SHARES WITHOUT CDSC 12/15/98 6.46 9.88 -0.43 5.62 WITH CDSC* 5.46 9.88 -0.43 5.62 I SHARES 12/31/95 7.54 11.01 0.62 6.42 S&P 500 INDEX 11.72 17.21 3.97 8.95
PAST PERFORMANCE DOES NOT GUARANTEE FUTURE RESULTS. THE PERFORMANCE DATA QUOTED REPRESENTS PAST PERFORMANCE AND CURRENT RETURNS MAY BE LOWER OR HIGHER. TOTAL RETURN FIGURES INCLUDE CHANGE IN SHARE PRICE, REINVESTMENT OF DIVIDENDS AND CAPITAL GAINS AND DO NOT REFLECT TAXES THAT A SHAREHOLDER WOULD PAY ON FUND DISTRIBUTIONS OR ON THE REDEMPTION OF FUND SHARES. THE INVESTMENT RETURN AND PRINCIPAL VALUE WILL FLUCTUATE SO THAT AN INVESTOR'S SHARES, WHEN REDEEMED MAY BE WORTH MORE OR LESS THAN THE ORIGINAL COST. FOR PERFORMANCE DATA CURRENT TO THE MOST RECENT MONTH END, VISIT OUR WEBSITE AT WWW.STICLASSICFUNDS.COM. * CLASS A SHARE PERFORMANCE REFLECTS THE MAXIMUM FRONT-END SALES CHARGE OF 5.75% AND CLASS C SHARES REFLECT THE MAXIMUM CDSC (CONTINGENT DEFERRED SALES CHARGE) OF 1.00% IN YEAR ONE ONLY. EFFECTIVE AUGUST 1, 2005, L SHARES WERE RENAMED C SHARES AND T SHARES WERE RENAMED I SHARES. + The performance quoted represents past performance of the SunTrust Bank's internally managed common trust fund, adjusted for fees and expenses for periods prior to December 12, 1998 and inception of the A and C Shares on October 14, 2003 and December 15, 1998, respectively. The common trust fund was not registered under the 1940 Act and therefore was not subject to certain investment restrictions which may have adversely affected performance Because the common trust fund was not registered under the 1940 Act, it is not possible to reflect tax consequences when calculating after-tax returns for periods prior to the inception of these classes of shares. Therefore the after-tax returns reflect performance since the natural inception of these classes of shares. SECTOR WEIGHTINGS (as of March 31, 2006)(1) as a percentage of total investments (PIE CHART) Consumer Discretionary 7.7% Consumer Staples 6.8% Energy 7.3% Financials 14.9% Health Care 13.8% Industrials 14.2% Information Technology 17.0% Materials 3.0% Short-Term Investments 14.7% Telecommunication Services 0.6%
(1) PORTFOLIO COMPOSITION IS SUBJECT TO CHANGE 22 SMALL CAP GROWTH STOCK FUND PORTFOLIO MANAGER - - Mark D. Garfinkel, CFA INVESTMENT CONCERNS Small capitalization funds typically carry additional risks since smaller companies generally have a higher risk of failure. Equity securities (stocks) are more volatile and carry more risk than other forms of investments, including investments in high-grade fixed income securities. The net asset value per share of this Fund will fluctuate as the value of the securities in the portfolio changes. MANAGEMENT DISCUSSION & ANALYSIS HOW DID THE FUND PERFORM AGAINST ITS BENCHMARK FOR THE PERIOD ENDED MARCH 31, 2006? For the 12 months ended March 31, 2006, the Small Cap Growth Stock Fund's 27.55% total return (I Shares) was right in line with the 27.84% return of the Russell 2000(R) Growth benchmark. Analysis of the year's solid results reveals pockets of strength, offset by areas of weakness within the portfolio. On the positive side, the Fund displayed excellent stock selection in the Consumer Discretionary, Industrials and Healthcare sectors, which comprise close to half the total weight of the benchmark. One primary area of weakness in the Fund's performance relative to the benchmark was the Fund's significant underweight in the best performing sector, Energy. Two other areas of weakness for the Fund were poor stock selection in the Technology and Consumer Staples sectors.(1) WHAT FACTORS INFLUENCED THE FUND'S PERFORMANCE FOR THE PERIOD ENDED MARCH 31, 2006? During the last 12 months there were a variety of domestic and global issues impacting the markets, including several Fed Funds rate increases, devastating hurricanes which brought widespread damage to the Gulf region, rising oil and gas prices (reaching nearly $70 per barrel of oil), plus heightened geopolitical concerns in the Middle East. Despite these issues, the U.S. economy posted strong economic growth and steadily improving employment gains, driving the stock market higher. Small cap stocks fared particularly well, outpacing both mid cap and larger cap companies. These strong gains were fueled by strong earnings growth that consistently exceeded Wall Street expectations. Productivity gains and a focus on cost controls enabled many of our portfolio companies to enjoy rising profit margins that currently are near historic high levels. With the strong stock price gains of the last year, small cap valuation levels versus large caps have moved modestly above neutral territory relative to historical norms.(1) HOW DO YOU PLAN TO POSITION THE FUND, BASED ON MARKET CONDITIONS? Economic and corporate profit growth has been strong, but should begin to slow, given high energy prices, rising commodity prices, and rising interest rates. Given the interest rate environment, the Fund has been underweight in the Financials sector due to the negative impact of rising rates on bank profit margins. As we near an end to the Fed rate increases, we will reverse this course. High energy prices and the slowdown in the housing market should have a dampening effect on the consumer, leading to a neutral to negative bias in Consumer stocks. Conversely, high corporate cash balances and higher levels of capacity utilization typically result in rising capital expenditures, benefiting companies leveraged to business spending. Thus, we have overweight positions in the Industrials and Technology sectors. Energy will remain underweight as we continue to feel the current high oil price environment is not sustainable. Lastly, the Healthcare sector has been modestly underweight versus the benchmark, but Fund management is always on the lookout for great Healthcare companies that filter through our process. As economic growth begins to peak, we will focus on companies with the strongest and most stable business models, with the least economic sensitivity, like most in the healthcare area. While the above comments address the Fund's positioning in a general sense, it is our bottoms-up fundamental process that determines which companies make it into the portfolio. The Fund's investment process seeks out high-quality companies with accelerating earnings and sales growth trends and solid fundamentals that will lead to sustainable growth and increasing shareholder value.(1) (1) Portfolio composition subject to change. 23 SMALL CAP GROWTH STOCK FUND GROWTH OF $10,000 INVESTMENT (as of March 31, 2006) (PERFORMANCE GRAPH)
Small Cap Growth Russell 2000 S&P SmallCap 600/ Stock Fund (I Shares) Growth Index BARRA Growth Index --------------------- ------------ ------------------ 10/8/1998 10000 10000 10000 12/98 14630 12364 12201 12968 12156 11165 15661 13949 12405 14850 13263 12087 12/99 17637 17692 14589 20524 19334 15802 20504 17909 15872 20560 17197 15686 12/00 19712 13724 14671 17624 11637 12743 20444 13729 14592 15776 9874 12062 12/01 19550 12457 14498 19759 12213 15018 17750 10296 13675 14226 8081 11673 12/02 15111 8687 12271 14139 8350 11834 17559 10367 13832 19269 11452 14915 12/03 22007 12904 16850 23784 13625 17814 23639 13637 18601 22801 12818 18035 12/04 26234 14751 20558 25032 13744 20202 25846 14222 20965 27624 15120 22353 12/05 28311 15363 22403 3/06 31929 17570 24934
This chart assumes an initial hypothetical investment of $10,000 made on 10/08/98. Total return is based on net change in N.A.V. (net asset value) assuming reinvestment of distributions. Returns shown on this page include reinvestment of all dividends and other distributions. The Funds has changed its standardized benchmark because the previous benchmark, the S&P SmallCap 600/BARRA Growth Index, will be discontinued on June 30, 2006, the Russell 2000(R) Growth Index will be used henceforth. The Russell 2000(R) Growth Index is comprised of the securities in the Russell 2000 Index with a greater-than-average growth orientation. Companies in this index tend to exhibit higher price-to-book and price-to-earnings ratios. The S&P Small Cap 600/ BARRA Growth Index a widely recognized index that measures the performance of the small-capitalization growth sector of the U.S. equity market. It is a subset of the S&P 600 Index consisting of those companies with the highest price-to-book ratios within the S&P 600 Index. The index is unmanaged and does not reflect the deduction of fees or taxes associated with a mutual fund, such as investment management and fund accounting fees. Investors cannot invest directly in an index, although they can invest in its underlying securities.
AVERAGE ANNUAL TOTAL RETURNS AS OF 3/31/06 (%) ---------------------------------------------- SINCE SMALL CAP GROWTH STOCK FUND INCEPTION DATE+ 1 YEAR 3 YEAR 5 YEAR 10 YEAR INCEPTION - --------------------------- --------------- ------ ------ ------ ------- --------- A SHARES WITHOUT SALES CHARGE 12/10/99 27.08 30.70 12.22 -- 16.44 WITH SALES CHARGE* 19.79 28.16 10.89 -- 15.52 C SHARES WITHOUT CDSC 10/08/98 26.21 29.86 11.46 -- 15.61 WITH CDSC* 25.21 29.86 11.46 -- 15.61 I SHARES 10/08/98 27.55 31.20 12.62 -- 16.80 RUSSELL 2000(R) GROWTH INDEX 27.84 28.14 8.59 5.51 -- S&P SMALLCAP 600/BARRA GROWTH INDEX 23.43 28.20 14.37 10.26 --
PAST PERFORMANCE DOES NOT GUARANTEE FUTURE RESULTS. THE PERFORMANCE DATA QUOTED REPRESENTS PAST PERFORMANCE AND CURRENT RETURNS MAY BE LOWER OR HIGHER. TOTAL RETURN FIGURES INCLUDE CHANGE IN SHARE PRICE, REINVESTMENT OF DIVIDENDS AND CAPITAL GAINS AND DO NOT REFLECT TAXES THAT A SHAREHOLDER WOULD PAY ON FUND DISTRIBUTIONS OR ON THE REDEMPTION OF FUND SHARES. THE INVESTMENT RETURN AND PRINCIPAL VALUE WILL FLUCTUATE SO THAT AN INVESTOR'S SHARES, WHEN REDEEMED MAY BE WORTH MORE OR LESS THAN THE ORIGINAL COST. FOR PERFORMANCE DATA CURRENT TO THE MOST RECENT MONTH END, VISIT OUR WEBSITE AT WWW.STICLASSICFUNDS.COM. * CLASS A SHARE PERFORMANCE REFLECTS THE MAXIMUM FRONT-END SALES CHARGE OF 5.75% AND CLASS C SHARES REFLECT THE MAXIMUM CDSC (CONTINGENT DEFERRED SALES CHARGE) OF 1.00% IN YEAR ONE ONLY. EFFECTIVE AUGUST 1, 2005, L SHARES WERE RENAMED C SHARES AND T SHARES WERE RENAMED I SHARES. + The A Shares were offered beginning on December 10, 1999. The performance shown for the A Shares prior to such date is based on the performance of the I Shares (formerly T Shares) of the Fund, and has not been adjusted to reflect A Share expenses. If it had been performance would have been lower. SECTOR WEIGHTINGS (as of March 31, 2006)(1) as a percentage of total investments (PIE CHART) Consumer Discretionary 11.0% Consumer Staples 1.7% Energy 2.3% Financials 6.1% Health Care 13.1% Industrials 13.5% Information Technology 24.9% Materials 3.4% Repurchase Agreements 2.2% Short-Term Investments 21.8%
(1) PORTFOLIO COMPOSITION IS SUBJECT TO CHANGE 24 SMALL CAP VALUE EQUITY FUND PORTFOLIO MANAGER - - Brett Barner, CFA INVESTMENT CONCERNS Small capitalization funds typically carry additional risks since smaller companies generally have a higher risk of failure. Equity securities (stocks) are more volatile and carry more risk than other forms of investments, including investments in high-grade fixed income securities. The net asset value per share of this Fund will fluctuate as the value of the securities in the portfolio changes. Value-based investments are subject to the risk that the broad market may not recognize their intrinsic value. MANAGEMENT DISCUSSION & ANALYSIS HOW DID THE FUND PERFORM AGAINST ITS BENCHMARK FOR THE PERIOD ENDED MARCH 31, 2006? The Small Cap Value Fund (I Shares) continued its outperformance against the Russell 2000(R) Value Index by returning 30.70% versus 23.77% over the 12 month period ended March 31, 2006. The Fund managed to outpace the 19.91% return of the Lipper Small Cap Value Funds Average(2) by 1079 basis points (10.79%) over the same time period. WHAT FACTORS INFLUENCED THE FUND'S PERFORMANCE FOR THE PERIOD ENDED MARCH 31, 2006? The outperformance of the Fund was due to superior stock selection in Industrials, Consumer Discretionary and Materials. In the Industrials sector, the Fund's investment in FreightCar America Inc. (Rail) + 200%, a manufacturer of aluminum bodied railroad freight cars, benefited from the market's focus on the coal and railroad industries, and Harris Corp. (HRS) + 46.0%, an international communication equipment company, are examples of the superior stock selections which contributed to the Fund's excess return versus the index. In the Consumer Discretionary sector, the Fund benefited from the investment in Intrawest Corp. (IDR) + 79.6%, a destination and travel company that specializes in mountain resorts, and Makita Corp. + 67.8%, a company engaged in the manufacture and sale of power tools to the professional user. The Fund's performance was also assisted by the focus within the Materials sector. An example is Airgas Inc. (ARG) + 64.9%, a distributor of industrial, medical and specialty gases. Airgas continues to see improvement in its end-markets and has done a great job of expanding margins and growing earnings. The Fund's underweight of Utilities and the overweight in Industrials positively contributed to the Fund's outperformance versus the Russell 2000(R) Value Index(1). HOW DO YOU PLAN TO POSITION THE FUND, BASED ON MARKET CONDITIONS? The Fund continues to utilize its bottoms-up approach to stock selection. This approach seeks dividend paying stocks that are trading at the lower-end of historical trading ranges, display characteristics of financial strength and possess an identifiable catalyst that will assist in realizing true value. The Fund does not make active sector allocations but allows the process to define sector weights. The Fund will rely on the process for direction when making alterations to sector positions. We continue to be concerned about valuations in the Small Cap Value equity arena. Large inflows of capital by non-traditional Small Cap Value investors are skewing valuations to the upside for most securities in the universe. This phenomenon has in turn caused lower quality names to increase in price and has made stock selection critical for outperformance. These non-traditional investors may also place undue downside pressure on valuations when they decide to exit the Small Cap realm. The Fund also recognizes the impact of higher interest rates on security valuation. As the shift to a higher interest rate environment proceeds, a re-valuation of equities will occur. The Fund remains very cognizant of the effects of high commodity prices on company feedstock and input costs. Higher prices could have negative effects on operating margins, which could cause a re-valuation of securities. Those equities with the highest valuations will see the most price erosion.(1) (1) Portfolio composition subject to change. (2) The Lipper Small Cap Value Funds Average is comprised of funds that, by portfolio practice, invest at least 75% of their equity assets in companies with market capitalizations (on a three-year weighted basis) less than 250% of the dollar-weighted median of the smallest 500 of the middle 1,000 securities of S&P SuperComposite 1500 Index. Small-cap value funds typically have a below-average price-to-earnings ratio, price-to-book ratio, and three-year sales-per-share growth value, compared to the S&P SmallCap 600 Index. 25 SMALL CAP VALUE EQUITY FUND GROWTH OF $10,000 INVESTMENT (as of March 31, 2006) (PERFORMANCE GRAPH)
Small Cap Value Equity Fund Russell 2000(R) (I Shares) Value Index --------------- --------------- 3/96 10000 10000 10623 10409 11042 10564 12/96 12402 11627 12992 11598 14934 13348 16798 15069 12/97 16443 15322 18035 16602 16430 16002 12817 13141 12/98 14231 14334 12338 12944 14784 15087 13580 13907 12/99 13844 14120 13273 14660 14051 14946 14989 16043 12/00 16331 17343 17228 17512 18754 19550 17228 16943 12/01 19795 19776 21716 21670 21322 21211 18642 16695 12/02 19450 17516 18205 16626 21317 20405 22996 21981 12/03 26656 25578 28172 27348 29281 27580 29325 27621 12/04 33446 31268 32816 30025 33283 31549 36324 32524 12/05 37614 32740 3/06 42888 37162
This chart assumes an initial hypothetical investment of $10,000 made on 3/31/96. Total return is based on net change in N.A.V. (net asset value) assuming reinvestment of distributions. Returns shown on this page include reinvestment of all dividends and other distributions. The Funds performance is compared to the Russell 2000(R) Value Index a widely-recognized, capitalization weighted index of companies in the Russell 2000(R) Index with lower growth rates and price-to-book ratios. The index is unmanaged and does not reflect the deduction of fees or taxes associated with a mutual fund, such as investment management and fund accounting fees. Investors cannot invest directly in an index, although they can invest in its underlying securities.
AVERAGE ANNUAL TOTAL RETURNS AS OF 3/31/06 (%) ---------------------------------- SMALL CAP VALUE EQUITY FUND INCEPTION DATE+ 1 YEAR 3 YEAR 5 YEAR 10 YEAR - --------------------------- --------------- ------ ------ ------ ------- A SHARES WITHOUT SALES CHARGE 10/09/03 30.44 32.65 19.79 15.57 WITH SALES CHARGE* 22.97 30.06 18.38 14.88 C SHARES WITHOUT CDSC 06/06/97 30.41 32.30 19.09 14.78 WITH CDSC* 29.41 32.30 19.09 14.78 I SHARES 08/31/94 30.70 33.06 20.01 15.67 RUSSELL 2000(R) VALUE INDEX 23.77 30.75 16.24 14.03
PAST PERFORMANCE DOES NOT GUARANTEE FUTURE RESULTS. THE PERFORMANCE DATA QUOTED REPRESENTS PAST PERFORMANCE AND CURRENT RETURNS MAY BE LOWER OR HIGHER. TOTAL RETURN FIGURES INCLUDE CHANGE IN SHARE PRICE, REINVESTMENT OF DIVIDENDS AND CAPITAL GAINS AND DO NOT REFLECT TAXES THAT A SHAREHOLDER WOULD PAY ON FUND DISTRIBUTIONS OR ON THE REDEMPTION OF FUND SHARES. THE INVESTMENT RETURN AND PRINCIPAL VALUE WILL FLUCTUATE SO THAT AN INVESTOR'S SHARES, WHEN REDEEMED MAY BE WORTH MORE OR LESS THAN THE ORIGINAL COST. FOR PERFORMANCE DATA CURRENT TO THE MOST RECENT MONTH END, VISIT OUR WEBSITE AT WWW.STICLASSICFUNDS.COM. * CLASS A SHARE PERFORMANCE REFLECTS THE MAXIMUM FRONT-END SALES CHARGE OF 5.75% AND CLASS C SHARES REFLECT THE MAXIMUM CDSC (CONTINGENT DEFERRED SALES CHARGE) OF 1.00% IN YEAR ONE ONLY. EFFECTIVE AUGUST 1, 2005, L SHARES WERE RENAMED C SHARES AND T SHARES WERE RENAMED I SHARES. + The performance quoted represents past performance of the SunTrust Bank's internally managed common trust fund, adjusted for fees and expenses for periods prior to January 31, 1997, and past performance of the I Shares (formerly T Shares) for the periods between January 31, 1997 and inception of the C Shares (formerly L Shares) on June 6, 1997 and the A Shares on October 9, 2003. The common trust fund was not registered under the 1940 Act and therefore was not subject to certain investment restrictions which may have adversely affected performance. SECTOR WEIGHTINGS (as of March 31, 2006)(1) as a percentage of total investments (PIE CHART) Consumer Discretionary 18.1% Consumer Staples 2.8% Energy 4.1% Financials 14.8% Health Care 3.6% Industrials 27.7% Information Technology 7.1% Materials 7.5% Repurchase Agreements 0.9% Short-Term Investment 11.2% Utilities 2.2%
(1) PORTFOLIO COMPOSITION IS SUBJECT TO CHANGE 26 STRATEGIC QUANTITATIVE EQUITY FUND PORTFOLIO MANAGER - - Edward E. Best, CFA INVESTMENT CONCERNS Equity securities (stocks) are more volatile and carry more risk than other forms of investments, including investments in high-grade fixed income securities. The net asset value per share of this Fund will fluctuate as the value of the securities in the portfolio changes. MANAGEMENT DISCUSSION & ANALYSIS HOW DID THE FUND PERFORM AGAINST ITS BENCHMARK FOR THE PERIOD ENDED MARCH 31, 2006? For the 12 months ended March 31, 2006, the Strategic Quantitative Equity Fund (I Shares) appreciated 12.17% including dividends. The Fund outperformed the S&P 500, the primary benchmark, by 0.44%. From March 31, 2005 to March 31, 2006, the S&P 500 appreciated a healthy 11.72% including reinvested dividends. The market appreciated in the face of numerous concerns including higher interest rates, higher oil prices, a significant natural disaster, and an on-going war. From March 31, 2005 until early September 2005, the S&P 500 appreciated 6%. From early September, 2005 to October, 2005, the S&P 500 gave back the earlier gains. The retrenchment was primarily due to concerns over the Katrina natural disaster and its subsequent impact on the domestic energy supply. From late October, 2005 to March 31, 2006, the S&P 500 rallied nearly 11%, shrugging off prior worries. From March 31, 2005 to March 31, 2006, Energy and Financial stocks performed the best. Consumer stocks fared the worst. Energy stocks benefited from the continuing rise in oil prices, going from the low $50s to the upper $60s. Financial stocks were driven by several factors including an improving investment banking environment and the benefit of a defensive rotation. Consumer stocks were negatively impacted by concerns over a weakening consumer due to higher interest rates and higher oil prices.(1) WHAT FACTORS INFLUENCED THE FUND'S PERFORMANCE FOR THE PERIOD ENDED MARCH 31, 2006? Strong stock selection within almost all sectors contributed most of the Fund's excess returns. Stock selection within Health Care and Information Technology were the largest contributors to the Fund's excess returns. Stock selection within Consumer Staples detracted modestly from the excess returns. Sector allocations detracted somewhat from the excess returns. While Energy was the strongest performing sector, the Fund's benchmarkneutral Energy weight neither added nor detracted from the excess returns. The Fund's modest overweight in Consumer Discretionary and Healthcare detracted from the excess returns.(1) HOW DO YOU PLAN TO POSITION THE FUND, BASED ON MARKET CONDITIONS? The Fund manager will continue to employ a consistent investment discipline, with stock selection being the largest driver of anticipated performance. While the Fund has on occasion pursued sector allocation opportunities aggressively, the Fund currently does not have any major sector tilts. The Fund is modestly overweight in Financials, Energy, Information Technology, and Healthcare. The Fund is slightly underweight in Consumer Discretionary and Industrials/Materials, and more heavily underweighted in Consumer Staples.(1) (1) Portfolio composition subject to change. 27 STRATEGIC QUANTITATIVE EQUITY FUND GROWTH OF $10,000 INVESTMENT (as of March 31, 2006) (PERFORMANCE GRAPH)
Strategic Quantitative Equity Fund (I Shares) S&P 500 Index ---------------------- ------------- 8/7/2003 10000 10000 10650 10087 12/03 12067 11314 12649 11506 12997 11703 12598 11485 12/04 14049 12544 14298 12275 14718 12443 15334 12891 12/05 15230 13160 3/06 16038 13713
This chart assumes an initial hypothetical investment of $10,000 made on 8/7/03. Total return is based on net change in N.A.V. (net asset value) assuming reinvestment of distributions. Returns shown on this page include reinvestment of all dividends and other distributions. The Funds performance is compared to the S&P 500 Index a market value-weighted index of 500 stocks designed to mimic the overall U.S. equity market's industry weightings. The index is unmanaged and does not reflect the deduction of fees or taxes associated with a mutual fund, such as investment management and fund accounting fees. Investors cannot invest directly in an index, although they can invest in its underlying securities.
AVERAGE ANNUAL TOTAL RETURNS AS OF 3/31/06 (%) ------------------ SINCE STRATEGIC QUANTITATIVE EQUITY FUND INCEPTION DATE 1 YEAR INCEPTION - ---------------------------------- -------------- ------ --------- A SHARES WITHOUT SALES CHARGE 10/08/03 11.90 14.62 WITH SALES CHARGE* 5.50 11.92 C SHARES WITHOUT CDSC 10/13/03 11.11 12.71 WITH CDSC* 10.11 12.71 I SHARES 08/07/03 12.17 19.52 S&P 500 INDEX 11.72 --
PAST PERFORMANCE DOES NOT GUARANTEE FUTURE RESULTS. THE PERFORMANCE DATA QUOTED REPRESENTS PAST PERFORMANCE AND CURRENT RETURNS MAY BE LOWER OR HIGHER. TOTAL RETURN FIGURES INCLUDE CHANGE IN SHARE PRICE, REINVESTMENT OF DIVIDENDS AND CAPITAL GAINS AND DO NOT REFLECT TAXES THAT A SHAREHOLDER WOULD PAY ON FUND DISTRIBUTIONS OR ON THE REDEMPTION OF FUND SHARES. THE INVESTMENT RETURN AND PRINCIPAL VALUE WILL FLUCTUATE SO THAT AN INVESTOR'S SHARES, WHEN REDEEMED MAY BE WORTH MORE OR LESS THAN THE ORIGINAL COST. FOR PERFORMANCE DATA CURRENT TO THE MOST RECENT MONTH END, VISIT OUR WEBSITE AT WWW.STICLASSICFUNDS.COM. * CLASS A SHARE PERFORMANCE REFLECTS THE MAXIMUM FRONT-END SALES CHARGE OF 5.75% AND CLASS C SHARES REFLECT THE MAXIMUM CDSC (CONTINGENT DEFERRED SALES CHARGE) OF 1.00% IN YEAR ONE ONLY. EFFECTIVE AUGUST 1, 2005, L SHARES WERE RENAMED C SHARES AND T SHARES WERE RENAMED I SHARES. SECTOR WEIGHTINGS (as of March 31, 2006)(1) as a percentage of total investments (PIE CHART) Consumer Discretionary 10.5% Consumer staples 6.4% Energy 12.4% Financials 23.8% Health Care 14.1% Industrials 12.8% Information Technology 18.2% Materials 1.1% Repurchase Agreement 0.7%
(1) PORTFOLIO COMPOSITION IS SUBJECT TO CHANGE 28 BALANCED FUND PORTFOLIO MANAGER(S) - - Robert J. Rhodes, CFA - - Elizabeth G. Pola, CFA - - John Talty, CFA - - Perry Troisi INVESTMENT CONCERNS Equity securities (stocks) are more volatile and carry more risk than other forms of investments, including investments in high-grade fixed income securities. The net asset value per share of this Fund will fluctuate as the value of the securities in the portfolio changes. Bonds offer a relatively stable level of income, although bond prices will fluctuate providing the potential for principal gain or loss. Intermediate-term, higher-quality bonds generally offer less risk than longer-term bonds and a lower rate of return. MANAGEMENT DISCUSSION & ANALYSIS HOW DID THE FUND PERFORM AGAINST ITS BENCHMARK FOR THE PERIOD ENDED MARCH 31, 2006? For the 12 months ended March 31, 2006, the Balanced Fund returned 5.10% (I Shares). The Fund targets an equity-bond allocation of 60/40%, and thus uses a blended benchmark for performance purposes of 60% S&P 500 Index, 40% Lehman Government/Credit Bond Index. The return for this blended benchmark was 7.82% for the year. The Fund's bond segment performed about in line, but the equity portfolio had a disappointing year. The primary reasons were as follows. Stock selection was subpar in the Consumer Discretionary sector, as the quality growth names we favored had good earnings results but suffered valuation compression. Second, the portfolio was underweighted energy, a posture which was particularly detrimental in the September quarter when two major hurricanes sent energy stocks into orbit. Third, stock selection in Healthcare was inadequate. Fortunately, two of these three issues improved substantially in the second half of the year. Energy stocks cooled off and our consumer names recovered. We are working diligently, and making progress, on improving the Healthcare performance.(1) WHAT FACTORS INFLUENCED THE FUND'S PERFORMANCE FOR THE PERIOD ENDED MARCH 31, 2006? Also impeding Fund performance for the year was a bias toward higher quality stocks and bonds. Low quality, riskier stocks rose a lot more, and low quality bonds were approximately five percentage points ahead of Government bonds. Also, on the equity side we were a little more tilted to large cap stocks, but small and mid-cap stocks continued to power ahead.(1) HOW DO YOU PLAN TO POSITION THE FUND, BASED ON MARKET CONDITIONS? As to the year ahead, our strategy and positioning remains intact. We strongly believe lower quality stocks and bonds are mispriced in today's environment, relative to their inherent risk. In terms of the economic outlook, business risks are rising, not falling, with slowing profits, high energy prices, and the Fed tightening interest rates contributing to eventual stress at some point. In the bond portfolio, we have overweighted U.S. Government bonds given unattractive prices for lower quality, and for the equity portfolio, the holdings emphasize companies with strong balance sheets and proven dividend growth. For example, 3-year dividend growth of stocks held in the Fund is almost 19% annualized, compared to only 11% for the S&P 500. In closing, we believe shareholders of the Fund should be able to sleep well at night. To this end, we have attempted to position the Fund toward stocks and bonds which can do well in a slowing economy where risky securities can be treacherous and volatile. We expect this strategy to be successful over the next 12 months, and appreciate your interest in the Balanced Fund as a dependable long-term vehicle for competitive returns.(1) (1) Portfolio composition subject to change. 29 BALANCED FUND GROWTH OF $10,000 INVESTMENT (as of March 31, 2006) (PERFORMANCE GRAPH)
60/40 Hybrid Index (60% S&P Balanced Fund Lehman Brothers U.S. 500 Index and 40% Lehman Brothers (I Shares) Government/Credit Index S&P 500 Index U.S. Government/Credit Index ------------- ----------------------- ------------- --------------------------------- 3/96 10000 10000 10000 10000 10312 10047 10451 10289 10572 10224 10771 10556 12/96 10978 10537 11673 11216 11065 10446 11978 11358 12306 10826 14074 12700 12954 11205 15132 13458 12/97 13299 11565 15567 13869 14486 11740 17739 15104 14977 12047 18325 15564 14124 12644 16502 14959 12/98 15899 12661 20017 16831 15992 12509 21014 17251 16756 12372 22495 17902 15811 12439 21091 17264 12/99 16639 12389 24229 18749 17240 12722 24785 19231 17345 12906 24126 19034 17548 13277 23893 19153 12/00 17437 13857 22023 18577 16846 14300 19412 17475 17543 14343 20548 18120 16510 15026 17532 16815 12/01 17476 15035 19406 17894 17351 14964 19459 17899 16316 15526 16852 16691 15529 16411 13941 15280 12/02 15985 16694 15116 16188 15945 16969 14640 15988 16794 17567 16895 17678 16842 17478 17342 17933 12/03 17591 17474 19454 19226 18030 18012 19784 19659 17812 17441 20123 19609 17726 18061 19746 19666 12/04 18575 18206 21569 20811 18180 18084 21105 20490 18295 18707 21394 20943 18219 18527 22165 21318 12/05 18739 18638 22628 21638 3/06 19106 18449 23580 22093
This chart assumes an initial hypothetical investment of $10,000 made on 3/31/96. Total return is based on net change in N.A.V. (net asset value) assuming reinvestment of distributions. Returns shown on this page include reinvestment of all dividends and other distributions. The Funds performance is compared to the S&P 500 Index, the Lehman Brothers U.S. Government/Credit Index and a Hybrid blend of 60/40 (60% of the S&P 500 Index and 40% of the Lehman Brothers U.S. Government/Credit Index). The S&P 500 Index is a market valueweighted index of 500 stocks designed to mimic the overall U.S. equity market's industry weightings. The Lehman Brothers U.S. Government/ Credit Index is a composite index made up of the Lehman Brothers U.S. Government Index, and the Lehman Brothers U.S. Credit Index, which include U.S. government, Treasury and agency securities, as well as high-grade corporate bonds. The indices are unmanaged and does not reflect the deduction of fees or taxes associated with a mutual fund, such as investment management and fund accounting fees. Investors cannot invest directly in an index, although they can invest in its underlying securities.
AVERAGE ANNUAL TOTAL RETURNS AS OF 3/31/06 (%) INCEPTION ---------------------------------- BALANCED FUND DATE 1 YEAR 3 YEAR 5 YEAR 10 YEAR - ------------- --------- ------ ------ ------ ------- A SHARES WITHOUT SALES CHARGE 01/03/94 4.77 5.88 2.24 6.36 WITH SALES CHARGE* -1.23 3.81 1.03 5.73 C SHARES WITHOUT CDSC 06/14/95 3.97 5.12 1.47 5.56 WITH CDSC* 3.00 5.12 1.47 5.56 I SHARES 01/03/94 5.10 6.21 2.55 6.69 LEHMAN BROTHERS U.S. GOVERNMENT /CREDIT INDEX 2.02 2.83 5.23 6.32 S&P 500 INDEX 11.72 17.21 3.97 8.95 HYBRID INDEX (60% S&P 500 and 40% Lehman Brothers U.S Govt/Credit Index) 7.82 11.38 4.80 8.25
PAST PERFORMANCE DOES NOT GUARANTEE FUTURE RESULTS. THE PERFORMANCE DATA QUOTED REPRESENTS PAST PERFORMANCE AND CURRENT RETURNS MAY BE LOWER OR HIGHER. TOTAL RETURN FIGURES INCLUDE CHANGE IN SHARE PRICE, REINVESTMENT OF DIVIDENDS AND CAPITAL GAINS AND DO NOT REFLECT TAXES THAT A SHAREHOLDER WOULD PAY ON FUND DISTRIBUTIONS OR ON THE REDEMPTION OF FUND SHARES. THE INVESTMENT RETURN AND PRINCIPAL VALUE WILL FLUCTUATE SO THAT AN INVESTOR'S SHARES, WHEN REDEEMED MAY BE WORTH MORE OR LESS THAN THE ORIGINAL COST. FOR PERFORMANCE DATA CURRENT TO THE MOST RECENT MONTH END, VISIT OUR WEBSITE AT WWW.STICLASSICFUNDS.COM. * CLASS A SHARE PERFORMANCE REFLECTS THE MAXIMUM FRONT-END SALES CHARGE OF 5.75% AND CLASS C SHARES REFLECT THE MAXIMUM CDSC (CONTINGENT DEFERRED SALES CHARGE) OF 1.00% IN YEAR ONE ONLY. EFFECTIVE AUGUST 1, 2005, L SHARES WERE RENAMED C SHARES AND T SHARES WERE RENAMED I SHARES. SECTOR WEIGHTINGS (as of March 31, 2006)(1) as a percentage of total investments (PIE CHART) Consumer Discretionary 7.7% Consumer Staples 1.5% Energy 2.4% Financials 7.6% Health Care 7.6% Industrials 8.1% Information Technology 7.4% Materials 0.5% Telecommunication Services 0.6% Corporate Bonds 5.5% Fixed Income Securities 1.4% U.S. Treasury Obligations 22.8% Short-Term Investments 23.1% Repurchase Agreements 3.8%
(1) PORTFOLIO COMPOSITION SUBJECT TO CHANGE. 30 LIFE VISION AGGRESSIVE GROWTH FUND PORTFOLIO MANAGER - - Alan Gayle INVESTMENT CONCERNS Stocks are more volatile and carry more risk and return potential than other forms of investments. Bonds offer a relatively stable level of income, although bond prices will fluctuate, providing the potential for principal gain or loss. Cash equivalents offer low risk and low return potential. MANAGEMENT DISCUSSION & ANALYSIS HOW DID THE FUND PERFORM AGAINST ITS BENCHMARK FOR THE PERIOD ENDED MARCH 31, 2006? The Life Vision Aggressive Growth Fund targets an equity-cash allocation of 90/10%, and thus uses a blended benchmark for performance purposes of 90% S&P 500 and 10% Citigroup 3 Month Treasury Bill. For the year ended March 31, 2006, the Fund outperformed its benchmark. The Fund (I Shares) returned 13.90% compared with a 10.90% return for the benchmark. WHAT FACTORS INFLUENCED THE FUND'S PERFORMANCE FOR THE PERIOD ENDED MARCH 31, 2006? The allocations to International, Mid-Cap, and Small Caps helped performance throughout the year, while individual manager performance was instrumental in the first quarter of 2006.(1) HOW DO YOU PLAN TO POSITION THE FUND, BASED ON MARKET CONDITIONS? Near-term risks are somewhat elevated at present given the rise in bond yields, higher energy prices, and a flat/inverted yield curve. We are emphasizing Large Caps, the Growth style and International.(1) FUND ALLOCATION (as of March 31, 2006)(1) as a percentage of total investments (PIE CHART) Capital Appreciation Fund .......... 24.4% Large Cap Relative Value Fund ...... 18.8% International Equity Index Fund .... 15.2% Strategic Quantiative Equity Fund .. 8.0% Large Cap Value Equity Fund ........ 7.9% Aggressive Growth Stock Fund ....... 7.1% Mid-Cap Equity Fund ................ 6.0% Prime Quality Money Market Fund .... 5.1% Mid-Cap Value Equity Fund .......... 3.0% Small Cap Growth Stock Fund ........ 2.0% Small Cap Value Equity Fund ........ 1.5% Emerging Growth Stock Fund ......... 1.0%
(1) PORTFOLIO COMPOSITION IS SUBJECT TO CHANGE 31 LIFE VISION AGGRESSIVE GROWTH FUND GROWTH OF $10,000 INVESTMENT (as of March 31, 2006) (PERFORMANCE GRAPH)
90/10 Hybrid Index (90% S&P Life Vision Aggressive Citigroup 3 500 Index and 10% Citigroup Growth Fund (I Shares) S&P 500 Index Month Treasury Index 3 Month Treasury Bill Index) ---------------------- ------------- -------------------- ---------------------------- 3/96 10000 10000 10000 10000 10445 10451 10127 10419 10572 10771 10259 10722 12/96 11144 11673 10391 11544 10902 11978 10523 11833 12706 14074 10659 13703 13852 15132 10797 14653 12/97 13655 15567 10937 15054 15324 17739 11078 16958 15238 18325 11219 17485 12918 16502 11360 15953 12/98 15336 20017 11490 19012 15522 21014 11617 19887 16800 22495 11748 21173 15477 21091 11887 20005 12/99 16918 24229 12035 22699 17568 24785 12196 23210 17660 24126 12371 22689 18069 23893 12555 22531 12/00 17983 22023 12752 20978 16606 19412 12930 18765 17511 20548 13068 19777 15194 17532 13187 17170 12/01 16811 19406 13273 18829 17058 19459 13331 18886 15616 16852 13390 16607 13002 13941 13447 14020 12/02 13767 15116 13499 15095 13101 14640 13540 14672 14944 16895 13578 16702 15504 17342 13612 17104 12/03 17441 19454 13644 18977 18015 19784 13676 19271 18200 20123 13708 19574 17833 19746 13753 19250 12/04 19710 21569 13813 20855 19436 21105 13891 20463 19488 21394 13987 20731 20219 22165 14099 21420 12/05 20851 22628 14228 21844 3/06 22136 23580 14373 22693
This chart assumes an initial hypothetical investment of $10,000 made on 3/31/96. Total return is based on net change in N.A.V. (net asset value) assuming reinvestment of distributions. Returns shown on this page include reinvestment of all dividends and other distributions. The Funds performance is compared to the S&P 500 Index, the Citigroup 3 Month Treasury Bill Index and a Hybrid blend of 90/10 (90% of the S&P 500 Index and 10% of the Citigroup 3 Month Treasury Bill Index). The S&P 500 Index is a market value-weighted index of 500 stocks designed to mimic the overall U.S. equity market's industry weightings. The Citigroup 3 Month Treasury Bill Index tracks the performance of 3 month U.S. Treasury Bills. The indices are unmanaged and do not reflect the deduction of fees or taxes associated with a mutual fund, such as investment management and fund accounting fees. Investors cannot invest directly in an index, although they can invest in its underlying securities.
AVERAGE ANNUAL TOTAL RETURNS AS OF 3/31/06 (%) ---------------------------------- LIFE VISION AGGRESSIVE GROWTH FUND INCEPTION DATE+ 1 YEAR 3 YEAR 5 YEAR 10 YEAR - ---------------------------------- --------------- ------ ------ ------ ------- A SHARES WITHOUT SALES CHARGE 10/16/03 13.50 18.79 5.75 8.19 WITH SALES CHARGE* 7.01 16.48 4.50 7 55 B SHARES WITHOUT CDSC 03/11/03 13.10 18.25 5.43 8.02 WITH CDSC* 8.10 17.29 5.10 8.02 C SHARES WITHOUT CDSC 04/04/05 12.79 18.72 5.71 8.16 WITH CDSC* 11.79 18.72 5.71 8.16 I SHARES 12/31/92 13.90 19.11 5.92 8.27 S&P 500 INDEX 11.72 17.21 3.97 8.95 CITIGROUP 3 MONTH TREASURY BILL INDEX 3.47 2.01 2.14 3.69 HYBRID INDEX (90% of the S&P 500 Index and 10% of the Citigroup 3 Month Treasury Bill Index) 10.90 15.65 3.87 8.54
PAST PERFORMANCE DOES NOT GUARANTEE FUTURE RESULTS. THE PERFORMANCE DATA QUOTED REPRESENTS PAST PERFORMANCE AND CURRENT RETURNS MAY BE LOWER OR HIGHER. TOTAL RETURN FIGURES INCLUDE CHANGE IN SHARE PRICE, REINVESTMENT OF DIVIDENDS AND CAPITAL GAINS AND DO NOT REFLECT TAXES THAT A SHAREHOLDER WOULD PAY ON FUND DISTRIBUTIONS OR ON THE REDEMPTION OF FUND SHARES. THE INVESTMENT RETURN AND PRINCIPAL VALUE WILL FLUCTUATE SO THAT AN INVESTOR'S SHARES, WHEN REDEEMED MAY BE WORTH MORE OR LESS THAN THE ORIGINAL COST. FOR PERFORMANCE DATA CURRENT TO THE MOST RECENT MONTH END, VISIT OUR WEBSITE AT WWW.STICLASSICFUNDS.COM. * CLASS A SHARE PERFORMANCE REFLECTS THE MAXIMUM FRONT-END SALES CHARGE OF 5.75%, CLASS B SHARES REFLECT THE MAXIMUM CDSC (CONTINGENT DEFERRED SALES CHARGE) OF 5.00% AND CLASS C SHARES REFLECT THE MAXIMUM CDSC (CONTINGENT DEFERRED SALES CHARGE) OF 1.00% IN YEAR ONE ONLY. EFFECTIVE AUGUST 1, 2005, L SHARES WERE RENAMED C SHARES AND T SHARES WERE RENAMED I SHARES. + The quoted performance of the Life Vision Aggressive Growth Fund includes performance of certain accounts advised by Crestar Bank, for periods dating back to December 31, 1992 and prior to the Mutual Fund's commencement of operations on June 30, 1997, as adjusted to reflect the expenses associated with the Mutual Funds. The accounts were not registered with the Securities and Exchange Commission and, therefore, were not subject to the investment restrictions imposed by law on registered mutual funds. If the accounts had been registered, the account's performance may have been adversely affected. For the period prior to October 16, 2003 (Class A Shares) and April 1, 2005 (Class C Shares formerly L Shares), the quoted performance reflects the performance of the Class I Shares (formerly T Shares). Class B Shares are closed to new investors. 32 LIFE VISION CONSERVATIVE FUND PORTFOLIO MANAGER - - Alan Gayle INVESTMENT CONCERNS Stocks are more volatile and carry more risk and return potential than other forms of investments. Bonds offer a relatively stable level of income, although bond prices will fluctuate, providing the potential for principal gain or loss. Cash equivalents offer low risk and low return potential. MANAGEMENT DISCUSSION & ANALYSIS HOW DID THE FUND PERFORM AGAINST ITS BENCHMARK FOR THE PERIOD ENDED MARCH 31, 2006? The Life Vision Conservative Fund targets an bond-equity-cash allocation of 70% Lehman Aggregate Bond Index, 20% S&P 500 Index and 10% Citigroup 3 Month Treasury Bill. For the year ended March 31, 2006, the Fund (I Shares) returned 4.96% compared with a 4.27% return for the benchmark. WHAT FACTORS INFLUENCED THE FUND'S PERFORMANCE FOR THE PERIOD ENDED MARCH 31, 2006? The allocations to International, Mid-Caps and Small Caps helped performance throughout the year, while a moderate overweight in equities generally helped performance for most of the year. Individual manager performance was instrumental in the first quarter of 2006.(1) HOW DO YOU PLAN TO POSITION THE FUND, BASED ON MARKET CONDITIONS? Near-term risks are somewhat elevated at present given the rise in bond yields, higher energy prices, and a flat/inverted yield curve. We are currently neutral in our total equity weight, and we are emphasizing Large Caps, the Growth style and International.(1) FUND ALLOCATION (as of March 31, 2006)(1) as a percentage of total investments (PIE CHART) Core Bond Fund ...................... 69.9% Prime Quality Money Market Fund ..... 9.0% International Equity Index Fund ..... 5.1% Large Cap Relative Value Fund ....... 3.5% Capital Appreciation Fund ........... 3.5% Strategic Quantitative Equity Fund .. 1.5% Aggressive Growth Stock Fund ........ 1.5% Small-Cap Value Equity Fund ......... 1.0% Small-Cap Growth Fund ............... 1.0% Mid-Cap Value Equity Fund ........... 1.0% Mid-Cap Equity Fund ................. 1.0% Large Cap Value Equity Fund ......... 1.0% High Income Fund .................... 1.0%
(1) PORTFOLIO COMPOSITION IS SUBJECT TO CHANGE 33 LIFE VISION CONSERVATIVE FUND GROWTH OF $10,000 INVESTMENT (as of March 31, 2006) (PERFORMANCE GRAPH)
70/20/10 Hybrid Index (70% Citigroup 3 Lehman Brothers U.S. Aggregate Life Vision Lehman Brothers Month Bond Index, 20% S&P 500 Index Conservative U.S. Aggregate S&P 500 Treasury and 10% Citigroup 3 Month Fund (I Shares) Bond Index Index Bill Index Treasury Bill Index) --------------- --------------- ------- ----------- ------------------------------ 3/11/2003 10000 10000 10000 10000 10000 9950 9992 10097 10010 10015 10472 10242 11652 10038 10494 10606 10227 11960 10063 10545 12/03 11005 10260 13417 10087 10822 11268 10532 13645 10110 11063 11136 10275 13879 10135 10914 11280 10604 13618 10167 11120 12/04 11676 10705 14876 10212 11402 11606 10654 14556 10270 11323 11827 10975 14755 10341 11601 11879 10901 15287 10423 11640 12/05 12048 10965 15606 10518 11749 3/06 12181 10895 16263 10626 11806
This chart assumes an initial hypothetical investment of $10,000 made on 3/11/03. Total return is based on net change in N.A.V. (net asset value) assuming reinvestment of distributions. Returns shown on this page include reinvestment of all dividends and other distributions. The Funds performance is compared to the Lehman Brothers U.S. Aggregate Bond Index, the S&P 500 Index, the Citigroup 3 Month Treasury Bill Index, and a Hybrid blend of 70/20/10 (70% of the Lehman Brothers U.S. Aggregate Bond Index, 20% of the S&P 500 Index and 10% of the Citigroup 3 Month Treasury Bill Index). The Lehman Brothers U.S. Aggregate Bond is comprised of securities that are SEC-registered, taxable, and dollar denominated. The S&P 500 Index is a market value-weighted index of 500 stocks designed to mimic the overall U.S. equity market's industry weightings. The Citigroup 3 Month Treasury Bill Index tracks the performance of 3 month U.S. Treasury Bills. The indices are unmanaged and does not reflect the deduction of fees or taxes associated with a mutual fund, such as investment management and fund accounting fees. Investors cannot invest directly in an index, although they can invest in its underlying securities.
AVERAGE ANNUAL TOTAL RETURNS AS OF 3/31/06(%) LIFE VISION --------------------------------- CONSERVATIVE FUND INCEPTION DATE+ 1 YEAR 3 YEAR SINCE INCEPTION - ----------------- --------------- ------ ------ --------------- A SHARES WITHOUT SALES CHARGE 11/11/03 4.63 6.71 6.41 WITH SALES CHARGE* -0.32 4.98 4.73 B SHARES WITHOUT CDSC 03/11/03 4.23 6.36 6.07 WITH CDSC* -0.77 5.17 5.19 C SHARES WITHOUT CDSC 04/04/05 4.13 6.69 6.40 WITH CDSC* 3.13 6.69 6.40 I SHARES 11/06/03 4.96 6.98 6.67 LEHMAN BROTHERS U.S. AGGREGATE BOND INDEX 2.26 2.92 S&P 500 INDEX 11.72 17.21 -- CITIGROUP 3 MONTH U.S. TREASURY BILL INDEX 3.47 2.01 -- HYBRID INDEX (70% Lehman Brothers U.S. Aggregate Bond Index, 20% S&P 500 Index and 10% of the Citigroup 3 Month Treasury Bill Index) 4.27 5.64 --
PAST PERFORMANCE DOES NOT GUARANTEE FUTURE RESULTS. THE PERFORMANCE DATA QUOTED REPRESENTS PAST PERFORMANCE AND CURRENT RETURNS MAY BE LOWER OR HIGHER. TOTAL RETURN FIGURES INCLUDE CHANGE IN SHARE PRICE, REINVESTMENT OF DIVIDENDS AND CAPITAL GAINS AND DO NOT REFLECT TAXES THAT A SHAREHOLDER WOULD PAY ON FUND DISTRIBUTIONS OR ON THE REDEMPTION OF FUND SHARES. THE INVESTMENT RETURN AND PRINCIPAL VALUE WILL FLUCTUATE SO THAT AN INVESTOR'S SHARES, WHEN REDEEMED MAY BE WORTH MORE OR LESS THAN THE ORIGINAL COST. FOR PERFORMANCE DATA CURRENT TO THE MOST RECENT MONTH END, VISIT OUR WEBSITE AT WWW.STICLASSICFUNDS.COM. * CLASS A SHARE PERFORMANCE REFLECTS THE MAXIMUM FRONT-END SALES CHARGE OF 4.75%, CLASS B SHARES REFLECT THE MAXIMUM CDSC (CONTINGENT DEFERRED SALES CHARGE) OF 5.00% AND CLASS C SHARES REFLECT THE MAXIMUM CDSC (CONTINGENT DEFERRED SALES CHARGE) OF 1.00% IN YEAR ONE ONLY. EFFECTIVE AUGUST 1, 2005, L SHARES WERE RENAMED C SHARES AND T SHARES WERE RENAMED I SHARES. + For the period prior to November 11, 2003 (Class A Shares) and April 1, 2005 (Class C Shares formerly L Shares), the quoted performance reflects the performance of the Class I Shares (formerly T Shares) and Class B Shares prior to November 6, 2003. The I Shares (formerly the T Shares) opened on November 6, 2003. The performance shown prior to that date is based on the performance of the B Shares. Class B Shares are closed to new investors. 34 LIFE VISION GROWTH AND INCOME FUND PORTFOLIO MANAGER - - ALAN GAYLE INVESTMENT CONCERNS Stocks are more volatile and carry more risk and return potential than other forms of investments. Bonds offer a relatively stable level of income, although bond prices will fluctuate, providing the potential for principal gain or loss. Cash equivalents offer low risk and low return potential. MANAGEMENT DISCUSSION & ANALYSIS HOW DID THE FUND PERFORM AGAINST ITS BENCHMARK FOR THE PERIOD ENDED MARCH 31, 2006? The Life Vision Growth and Income Fund targets an equity-bond-cash allocation of 65% S&P 500, 25% Lehman Aggregate Bond Index and 10% Citigroup 3 Month Treasury Bill. For the year ended March 31, 2006, the Fund (I Shares) returned 11.05% compared with a 8.61% return to the benchmark. WHAT FACTORS INFLUENCED THE FUND'S PERFORMANCE FOR THE PERIOD ENDED MARCH 31, 2006? The allocations to International, Mid-Caps and Small Caps helped performance throughout the year, while a moderate overweight in equities generally helped performance for most of the year. Individual manager performance was instrumental in the first quarter of 2006.(1) HOW DO YOU PLAN TO POSITION THE FUND, BASED ON MARKET CONDITIONS? Near-term risks are somewhat elevated at present given the rise in bond yields, higher energy prices, and a flat/inverted yield curve We are currently neutral in our total equity weight, and we are emphasizing Large Caps, the Growth style and International.(1) FUND ALLOCATION (as of March 31, 2006)(1) as a percentage of total investments (PIE CHART) Core Bond Fund 20.9% Capital Appreciation Fund 18.1% Large Cap Relative Value Fund 13.9% International Equity Index Fund 11.2% Prime Quality Money Market Fund 7.9% Large Cap Value Equity Fund 5.9% Strategic Quantative Equity Fund 5.9% Aggressive Growth Stock Fund 5.3% Mid-Cap Equity Fund 4.4% Mid-Cap Value Equity Fund 2.2% Small Cap Growth Stock Fund 1.5% Small Cap Value Equity Fund 1.1% High Income Fund 1.0% Emerging Growth Stock Fund 0.7%
(1) PORTFOLIO COMPOSITION IS SUBJECT TO CHANGE 35 LIFE VISION GROWTH AND INCOME FUND GROWTH OF $10,000 INVESTMENT (as of March 31, 2006) (PERFORMANCE GRAPH)
65/25/10 Hybrid Index (65% S&P 500 Index, Life Vision Lehman Brothers Citigroup 3 25% Lehman Brothers U.S. Aggregate Bond Growth and Income U.S. Aggregate S&P 500 Month Index, and 10% of the Citigroup 3 Month Fund (I Shares) Bond Index Index Treasury Index Treasury Bill Index) ----------------- --------------- ------- -------------- ----------------------------------------- 3/96 10000 10000 10000 10000 10000 10314 10057 10451 10127 10303 10435 10242 10771 10259 10560 12/96 10918 10550 11673 10391 11192 10725 10491 11978 10523 11381 12077 10877 14074 10659 12743 12951 11240 15132 10797 13482 12/97 12892 11571 15567 10937 13843 14060 11750 17739 11078 15202 14043 12025 18325 11219 15639 12610 12533 16502 11360 14700 12/98 14332 12575 20017 11490 16822 14401 12511 21014 11617 17421 15257 12401 22495 11748 18298 14508 12486 21091 11887 17506 12/99 15472 12471 24229 12035 19394 15913 12746 24785 12196 19817 15965 12967 24126 12371 19507 16375 13358 23893 12555 19492 12/00 16567 13921 22023 12752 18547 15756 14342 19412 12930 17124 16450 14422 20548 13068 17842 14985 15088 17532 13187 16227 12/01 16145 15094 19406 13273 17357 16366 15108 19459 13331 17402 15491 15668 16852 13390 15994 13497 16386 13941 13447 14443 12/02 14210 16644 15116 13499 15213 13668 16875 14640 13540 14992 15474 17297 16895 13578 16440 16046 17272 17342 13612 16706 12/03 17619 17327 19454 13644 17981 18161 17787 19784 13676 18293 18177 17354 20123 13708 18396 18008 17908 19746 13753 18312 12/04 19474 18079 21569 13813 19447 19268 17993 21105 13891 19164 19401 18535 21394 13987 19481 19933 18409 22165 14099 19928 12/05 20466 18519 22628 14228 20251 3/06 21397 18400 23580 14373 20813
This chart assumes an initial hypothetical investment of $10,000 made on 3/31/96. Total return is based on net change in N.A.V. (net asset value) assuming reinvestment of distributions. Returns shown on this page include reinvestment of all dividends and other distributions. The Funds performance is compared to the S&P 500 Index, the Lehman Brothers U.S. Aggregate Bond Index, the Citigroup 3 Month Treasury Bill Index, and a Hybrid blend of 65/25/10 (65% of the S&P 500 Index, 25% of the Lehman Brothers U.S. Aggregate Bond Index and 10% of the Citigroup 3 Month Treasury Bill Index). The S&P 500 Index is a market value-weighted index of 500 stocks designed to mimic the overall U.S. equity market's industry weightings. The Lehman Brothers U.S. Aggregate Bond is comprised of securities that are SEC-registered, taxable, and dollar denominated. The Citigroup 3 Month Treasury Bill Index tracks the performance of 3 month U.S. Treasury Bills. The indices are unmanaged and do not reflect the deduction of fees or taxes associated with a mutual fund, such as investment management and fund accounting fees. Investors cannot invest directly in an index, although they can invest in its underlying securities.
AVERAGE ANNUAL TOTAL RETURNS AS OF 3/31/06 (%) --------------------------------- LIFE VISION GROWTH AND INCOME FUND INCEPTION DATE+ 1 YEAR 3 YEAR 5 YEAR 10 YEAR - ---------------------------------- --------------- ------ ------ ------ ------- A SHARES WITHOUT SALES CHARGE 11/05/03 10.73 15.79 6.14 7.81 WITH SALES CHARGE* 4.40 13.53 4.89 7.17 B SHARES WITHOUT CDSC 03/11/03 10.21 15.18 5.83 7.66 WITH CDSC* 5.21 14.17 5.51 7.66 C SHARES WITHOUT CDSC 04/06/05 9.46 15.55 6.01 7.75 WITH CDSC* 8.46 15.55 6.01 7.75 I SHARES 12/31/92 11.05 16.11 6.31 7.90 S&P 500 INDEX 11.72 17.21 3.97 8.95 LEHMAN BROTHERS U.S. AGGREGATE BOND INDEX 2.26 2.92 5.11 6.29 CITIGROUP 3 MONTH U.S. TREASURY BILL INDEX 3.47 2.01 2.14 3.69 HYBRID INDEX (65% of the S&P 500 Index, 25% of the Lehman Brothers U.S. Aggregate Bond Index and 10% of the Citigroup 3 Month Treasury Bill Index) 8.61 11.56 3.98 7.61
PAST PERFORMANCE DOES NOT GUARANTEE FUTURE RESULTS. THE PERFORMANCE DATA QUOTED REPRESENTS PAST PERFORMANCE AND CURRENT RETURNS MAY BE LOWER OR HIGHER. TOTAL RETURN FIGURES INCLUDE CHANGE IN SHARE PRICE, REINVESTMENT OF DIVIDENDS AND CAPITAL GAINS AND DO NOT REFLECT TAXES THAT A SHAREHOLDER WOULD PAY ON FUND DISTRIBUTIONS OR ON THE REDEMPTION OF FUND SHARES. THE INVESTMENT RETURN AND PRINCIPAL VALUE WILL FLUCTUATE SO THAT AN INVESTOR'S SHARES, WHEN REDEEMED MAY BE WORTH MORE OR LESS THAN THE ORIGINAL COST. FOR PERFORMANCE DATA CURRENT TO THE MOST RECENT MONTH END, VISIT OUR WEBSITE AT WWW.STICLASSICFUNDS.COM. * CLASS A SHARE PERFORMANCE REFLECTS THE MAXIMUM FRONT-END SALES CHARGE OF 5.75%, CLASS B SHARES REFLECT THE MAXIMUM CDSC (CONTINGENT DEFERRED SALES CHARGE) OF 5.00% AND CLASS C SHARES REFLECT THE MAXIMUM CDSC (CONTINGENT DEFERRED SALES CHARGE) OF 1.00% IN YEAR ONE ONLY. EFFECTIVE AUGUST 1, 2005, L SHARES WERE RENAMED C SHARES AND T SHARES WERE RENAMED I SHARES. + The quoted performance of the Life Vision Growth and Income Fund includes performance of certain accounts advised by Crestar Bank, for periods dating back to December 31, 1992 and prior to the Mutual Fund's commencement of operations on June 30, 1997, as adjusted to reflect the expenses associated with the Mutual Funds. The accounts were not registered with the Securities and Exchange Commission and, therefore, were not subject to the investment restrictions imposed by law on registered mutual funds. If the accounts had been registered, the account's performance may have been adversely affected. For the period prior to November 5, 2003 (Class A Shares) and April 1, 2005 (Class C Shares formerly L Shares), the quoted performance reflects the performance of the Class I Shares (formerly T Shares). Class B Shares are closed to new investors. 36 LIFE VISION MODERATE GROWTH FUND PORTFOLIO MANAGER - - ALAN GAYLE INVESTMENT CONCERNS Stocks are more volatile and carry more risk and return potential than other forms of investments. Bonds offer a relatively stable level of income, although bond prices will fluctuate, providing the potential for principal gain or loss. Cash equivalent offer low risk and low return potential. MANAGEMENT DISCUSSION & ANALYSIS HOW DID THE FUND PERFORM AGAINST ITS BENCHMARK FOR THE PERIOD ENDED MARCH 31,2006? The Life Vision Moderate Growth Fund targets an equity-bond-cash allocation of 50% S&P 500,40% Lehman Brothers US Aggregate Bond index and 10% Citigroup 3 Month Treasury Bill. For the year ended March 31,2006, the Fund (I Shares) returned 8.48% compared with a 7.10% return for the benchmark. WHAT FACTORS INFLUENCED THE FUND'S PERFORMANCE FOR THE PERIOD ENDED MARCH 31,2006? The allocations to International, Mid-Caps and Small Caps helped performance throughout the year, while a moderate overweight in equities generally helped performance for most of the year. Individual manager performance was instrumental in the first quarter of 2006. (1) HOW DO YOU PLAN TO POSITION THE FUND, BASED ON MARKET CONDITIONS? Near-term risks are somewhat elevated at present given the rise in bond yields, higher energy prices, and a flat/inverted yield curve We are currently neutral in our total equity weight, and we are emphasizing Large Caps, the Growth style and International.(1) FUND ALLOCATION (as of March 31, 2006)(1) as a percentage of total investments (PIE CHART) Core Bond Fund..................... 40.9% Capital Appreciation Fund.......... 12.8% Large Cap Relative Value Fund...... 9.9% Prime Quality Money Market Fund.... 8.1% International Equity Index Fund.... 8.0% Strategic Quantative Equity Fund... 4.2% Large Cap Value Equity Fund........ 4.1% Aggressive Growth Stock Fund....... 3.8% Mid-Cap Equity Fund................ 3.5% Mid-Cap Value Equity Fund.......... 1.6% Small Cap Growth Stock Fund........ 1.1% High Income Fund................... 1.0% Small Cap Value Equity Fund........ 1.0%
(1) PORTFOLIO COMPOSITION IS SUBJECT TO CHANGE 37 LIFE VISION MODERATE GROWTH FUND GROWTH OF $10,000 INVESTMENT (as of March 31, 2006) (PERFORMANCE GRAPH)
Life Vision Lehman 50/40/10 Hybrid Index (50% S&P 500 Index, Moderate Brothers U.S. Citigroup 3 40% Lehman Brothers U.S. Aggregate Bond Growth Fund (I Aggregate Bond S&P 500 Month Treasury Index and 10% Citigroup 3 Month Treasury Shares) Index Index Bill Index Bill Index) -------------- -------------- ------- -------------- ----------------------------------------- 3/96 10000 10000 10000 10000 10000 10272 10057 10451 10127 10261 10391 10242 10771 10259 10512 12/96 10828 10550 11673 10391 11094 10651 10491 11978 10523 11233 11834 10877 14074 10659 12378 12611 11240 15132 10797 13034 12/97 12605 11571 15567 10937 13398 13605 11750 17739 11078 14421 13690 12025 18325 11219 14816 12596 12533 16502 11360 14368 12/98 14011 12575 20017 11490 15888 14084 12511 21014 11617 16269 14741 12401 22495 11748 16802 14047 12486 21091 11887 16337 12/99 14879 12471 24229 12035 17540 15306 12746 24785 12196 17942 15320 12967 24126 12371 17853 15685 13358 23893 12555 18020 12/00 15691 13921 22023 12752 17637 15170 14342 19412 12930 16814 15691 14422 20548 13068 17371 14626 15088 17532 13187 16384 12/01 15518 15094 19406 13273 17268 15645 15108 19459 13331 17314 15073 15668 16852 13390 16382 13686 16386 13941 13447 15224 12/02 14233 16644 15116 13499 15992 13871 16875 14640 13540 15833 15350 17297 16895 13578 17197 15840 17272 17342 13612 17426 12/03 17077 17327 19454 13644 18498 17609 17787 19784 13676 18856 17490 17354 20123 13708 18837 17476 17908 19746 13753 18907 12/04 18601 18079 21569 13813 19852 18436 17993 21105 13891 19615 18656 18535 21394 13987 20002 19007 18409 22165 14099 20327 12/05 19402 18519 22628 14228 20609 3/06 19999 18400 23580 14373 21008
This chart assumes an initial hypothetical investment of $10,000 made on 3/31/96. Total return is based on net change in N.A.V. (net asset value) assuming reinvestment of distributions. Returns shown on this page include reinvestment of all dividends and other distributions. The Funds performance is compared to the S&P 500 Index, the Lehman Brothers U.S. Aggregate Bond Index, the Citigroup 3 Month Treasury Bill Index, and a Hybrid blend of 50/40/10 (50% of the S&P 500 Index, 40% of the Lehman Brothers U.S. Aggregate Bond Index and 10% of the Citigroup 3 Month Treasury Bill Index). The S&P 500 Index is a market value-weighted index of 500 stocks designed to mimic the overall U.S. equity market's industry weightings. The Lehman Brothers U.S. Aggregate Bond is comprised of securities that are SEC-registered, taxable, and dollar denominated. The Citigroup 3 Month Treasury Bill Index tracks the performance of 3 month U.S. Treasury Bills. The indices are unmanaged and does not reflect the deduction of fees or taxes associated with a mutual fund, such as investment management and fund accounting fees. Investors cannot invest directly in an index, although they can invest in its underlying securities.
AVERAGE ANNUAL TOTAL RETURNS AS OF 3/31/06 (%) ---------------------------------------------- LIFE VISION MODERATE GROWTH FUND INCEPTION DATE+ 1 YEAR 3 YEAR 5 YEAR 10 YEAR - -------------------------------- ---------------- ------ ------ ------ ------- A SHARES WITHOUT SALES CHARGE 10/10/03 8.16 12.72 5.54 7.10 WITH SALES CHARGE* 1.93 10.52 4.30 6.47 B SHARES WITHOUT CDSC 03/11/03 7.60 12.15 5.19 6.92 WITH CDSC* 2.60 11.08 4.86 6.92 C SHARES WITHOUT CDSC 4/6/05 7.09 12.49 5.41 7.04 WITH CDSC* 6.09 12.49 5.41 7.04 I SHARES 12/31/92 8.48 12.97 5.68 7.18 S&P 500 INDEX 11.72 17.21 3.97 8.95 LEHMAN BROTHERS U.S. AGGREGRATE BOND INDEX 2.26 2.92 5.11 6.29 CITIGROUP 3 MONTH U.S. TREASURY BILL INDEX 3.47 2.01 2.14 3.69 HYBRID INDEX (50% of the S&P 500 Index, 40% of the Lehman Brothers U.S. Aggregate Bond Index and 10% of the Citigroup 3 Month Treasury Bill Index) 7.10 9.89 4.55 7.71
PAST PERFORMANCE DOES NOT GUARANTEE FUTURE RESULTS. THE PERFORMANCE DATA QUOTED REPRESENTS PAST PERFORMANCE AND CURRENT RETURNS MAY BE LOWER OR HIGHER. TOTAL RETURN FIGURES INCLUDE CHANGE IN SHARE PRICE, REINVESTMENT OF DIVIDENDS AND CAPITAL GAINS AND DO NOT REFLECT TAXES THAT A SHAREHOLDER WOULD PAY ON FUND DISTRIBUTIONS OR ON THE REDEMPTION OF FUND SHARES. THE INVESTMENT RETURN AND PRINCIPAL VALUE WILL FLUCTUATE SO THAT AN INVESTOR'S SHARES, WHEN REDEEMED MAY BE WORTH MORE OR LESS THAN THE ORIGINAL COST. FOR PERFORMANCE DATA CURRENT TO THE MOST RECENT MONTH END, VISIT OUR WEBSITE AT WWW.STICLASSICFUNDS.COM. * CLASS A SHARE PERFORMANCE REFLECTS THE MAXIMUM FRONT-END SALES CHARGE OF 5.75%, CLASS B SHARES REFLECT THE MAXIMUM CDSC (CONTINGENT DEFERRED SALES CHARGE) OF 5.00% AND CLASS C SHARES REFLECT THE MAXIMUM CDSC (CONTINGENT DEFERRED SALES CHARGE) OF 1.00% IN YEAR ONE ONLY. EFFECTIVE AUGUST 1, 2005, L SHARES WERE RENAMED C SHARES AND T SHARES WERE RENAMED I SHARES. + The quoted performance of the Life Vision Moderate Growth Fund includes performance of certain accounts advised by Crestar Bank, for periods dating back to December 31, 1992 and prior to the Mutual Fund's commencement of operations on June 30, 1997, as adjusted to reflect the expenses associated with the Mutual Funds. The accounts were not registered with the Securities and Exchange Commission and, therefore, were not subject to the investment restrictions imposed by law on registered mutual funds. If the accounts had been registered, the account's performance may have been adversely affected. For the period prior to October 10, 2003 (Class A Shares) and April 1, 2005 (Class C Shares formerly L Shares), the quoted performance reflects the performance of the Class I Shares (formerly T Shares). Class B Shares are closed to new investors. 38 SCHEDULES OF PORTFOLIO INVESTMENTS STI CLASSIC FUNDS March 31, 2006 (Amounts in thousands, except Shares) AGGRESSIVE GROWTH STOCK FUND
- -------------------------------------------------------- Shares or Principal Amount($) Value($) - -------------------------------------------------------- COMMON STOCKS (98.4%) CONSUMER DISCRETIONARY (23.4%) Best Buy Co., Inc. 114,700 6,415 Blue Nile, Inc. * 118,600 4,174 Coach, Inc. * 144,300 4,990 eBay, Inc. * 289,700 11,316 Garmin Ltd. 4,254 338 Getty Images, Inc. * 54,102 4,051 IAC/Interactive Corp. * 85,550 2,521 Monster Worldwide, Inc. * 69,502 3,465 Omnicom Group, Inc. 36,800 3,064 Starbucks Corp. * 333,100 12,538 Urban Outfitters, Inc. * 102,700 2,520 Walt Disney Co. (The) 193,700 5,402 -------- 60,794 -------- CONSUMER STAPLES (3.7%) Whole Foods Market, Inc. 144,100 9,574 -------- FINANCIALS (10.0%) BlackRock, Inc., Cl A 38,300 5,363 Calamos Asset Management, Inc., Cl A 69,100 2,584 Capital One Financial Corp. 40,500 3,261 Euronet Worldwide, Inc. * 83,800 3,170 Fiserv, Inc. * 6,081 259 Greenhill & Co., Inc. 20,500 1,355 Legg Mason, Inc. 36,100 4,524 Portfolio Recovery Associates, Inc. * 70,500 3,302 SLM Corp. 42,500 2,207 -------- 26,025 -------- HEALTH CARE (17.4%) Alcon, Inc. 52,500 5,474 Celgene Corp. * 96,900 4,285 Covance, Inc. * 24,500 1,439 Edwards Lifesciences Corp. * 30,100 1,309 Foxhollow Technologies, Inc. * 69,100 2,111 Gen-Probe, Inc. * 25,100 1,384 Genentech, Inc. * 62,241 5,260 Gilead Sciences, Inc. * 176,050 10,955 IDEXX Laboratories, Inc. * 26,800 2,314 Kyphon, Inc. * 53,100 1,975 Laboratory Corp. of America Holdings * 1,472 86 Psychiatric Solutions, Inc. * 165,900 5,496 Varian Medical Systems, Inc. * 56,700 3,184 -------- 45,272 --------
- -------------------------------------------------------- Shares or Principal Amount($) Value($) - -------------------------------------------------------- INFORMATION TECHNOLOGY (37.8%) Alliance Data Systems Corp. * 90,200 4,219 Apple Computer, Inc. * 199,800 12,531 aQuantive, Inc. * 231,200 5,442 Broadcom Corp., Cl A * 160,400 6,923 CheckFree Corp. * 4,869 246 Cisco Systems, Inc. * 19,225 417 CNET Networks, Inc. * 209,900 2,983 Cognizant Technology Solutions Corp., Cl A * 211,400 12,575 Digital Insight Corp. * 38,000 1,383 F5 Networks, Inc. * 48,500 3,516 First Data Corp. 3,382 158 Google, Inc. * 20,500 7,995 International Business Machines Corp. 4,252 351 Microsoft Corp. 29,054 791 Paychex, Inc. 149,400 6,224 QUALCOMM, Inc. 245,700 12,435 SiRF Technology Holdings, Inc. * 60,900 2,156 SRA International, Inc., Cl A * 194,000 7,320 Yahoo!, Inc. * 332,700 10,733 -------- 98,398 -------- SOFTWARE (0.7%) Adobe Systems, Inc. 54,000 1,886 -------- TELECOMMUNICATION SERVICES (5.4%) NII Holdings, Inc. * 163,300 9,629 Sprint Nextel Corp. 137,581 3,555 Time Warner Telecom, Inc., Cl A * 40,700 731 -------- 13,915 -------- Total Common Stocks (Cost $225,221) 255,864 -------- DEPOSITARY RECEIPTS (0.1%) Nasdaq-100 Trust, Ser 1 7,609 319 -------- Total Depositary Receipts (Cost $279) 319 --------
See Notes to Financial Statements. 39 SCHEDULES OF PORTFOLIO INVESTMENTS STI CLASSIC FUNDS March 31, 2006 (Amounts in thousands, except Shares) AGGRESSIVE GROWTH STOCK FUND -- CONCLUDED
- -------------------------------------------------------- Shares or Principal Amount($) Value($) - -------------------------------------------------------- REPURCHASE AGREEMENT (4.9%) Merrill Lynch & Co., Inc., 4.725%, dated 03/31/06, to be repurchased on 04/03/06, repurchase price $12,617,851 (collateralized by U.S. Government Agencies; 5.500%, 02/01/35; total market value $12,868,174) 12,613 12,613 -------- Total Repurchase Agreement (Cost $12,613) 12,613 -------- Total Investments (Cost $238,113) (a) -- 103.4% 268,796 Liabilities in excess of other assets -- (3.4)% (8,830) -------- Net Assets -- 100.0% $259,966 ========
- --------------- * Non-income producing security. (a)Cost for federal income tax purposes is $238,401 (amount in thousands). Unrealized appreciation/ (depreciation) on a tax basis is as follows (amounts in thousands): Unrealized Appreciation................. $36,604 Unrealized Depreciation................. (6,209) ------- Unrealized Appreciation (Depreciation)........................ $30,395 =======
Cl -- Class Ser -- Series See Notes to Financial Statements. 40 SCHEDULES OF PORTFOLIO INVESTMENTS STI CLASSIC FUNDS March 31, 2006 (Amounts in thousands, except Shares) CAPITAL APPRECIATION FUND
- ------------------------------------------------------- Shares or Principal Amount($) Value($) - ------------------------------------------------------- COMMON STOCKS (97.4%) CONSUMER DISCRETIONARY (16.8%) Advance Auto Parts, Inc. 444,400 18,505 Bed Bath & Beyond, Inc. * 300,000 11,520 Dow Jones & Co., Inc. (b) 295,400 11,609 Harley-Davidson, Inc. 529,700 27,481 Home Depot, Inc. (The) (b) 662,900 28,041 Lowe's Cos., Inc. (b) 519,000 33,443 Marriott International, Inc., Cl A 187,700 12,876 New York Times Co. (The), Cl A (b) 374,500 9,479 Newell Rubbermaid, Inc. (b) 532,000 13,401 NIKE, Inc., Cl B 175,400 14,927 Time Warner, Inc. 840,100 14,105 TJX Cos., Inc. (The) 652,000 16,183 Univision Communications, Inc., Cl A * (b) 584,300 20,141 Walt Disney Co. (The) (b) 420,000 11,714 ---------- 243,425 ---------- CONSUMER STAPLES (3.3%) Colgate-Palmolive Co. 240,800 13,750 Comcast Corp., Cl A * (b) 374,500 9,782 Estee Lauder Cos., Inc. (The), Cl A (b) 300,000 11,157 Wal-Mart Stores, Inc. 292,800 13,831 ---------- 48,520 ---------- ENERGY (4.5%) Anadarko Petroleum Corp. (b) 169,000 17,071 Exxon Mobil Corp. 795,300 48,402 ---------- 65,473 ---------- FINANCIALS (15.3%) American Express Co. 480,000 25,224 American International Group, Inc. 211,000 13,945 Chubb Corp. (The) 455,000 43,426 Goldman Sachs Group, Inc. (The) (b) 145,000 22,759 JPMorgan Chase & Co. 697,800 29,056 Merrill Lynch & Co., Inc. (b) 204,000 16,067 MGIC Investment Corp. (b) 500,000 33,315 Morgan Stanley 175,200 11,006
- ------------------------------------------------------- Shares or Principal Amount($) Value($) - ------------------------------------------------------- FINANCIALS--CONTINUED SLM Corp. 301,900 15,681 Wells Fargo & Co. 190,000 12,135 ---------- 222,614 ---------- HEALTH CARE (14.4%) AmerisourceBergen Corp. (b) 342,200 16,518 Amgen, Inc. * (b) 234,200 17,038 Baxter International, Inc. 974,000 37,800 Becton, Dickinson & Co. 548,800 33,795 Forest Laboratories, Inc. * 530,400 23,672 Health Management Associates, Inc., Cl A (b) 748,000 16,134 Pfizer, Inc. 676,600 16,861 Quest Diagnostics, Inc. 290,000 14,877 Schering-Plough Corp. 598,300 11,362 Tenet Healthcare Corp. * (b) 948,500 7,000 Universal Health Services, Inc., Cl B (b) 276,600 14,049 ---------- 209,106 ---------- INDUSTRIALS (17.4%) Danaher Corp. 376,900 23,952 Emerson Electric Co. 278,800 23,316 General Electric Co. 535,000 18,607 Honeywell International, Inc. 900,000 38,493 Illinois Tool Works, Inc. 210,700 20,293 Lockheed Martin Corp. 222,300 16,701 Raytheon Co. (b) 852,200 39,065 Southwest Airlines Co. 825,000 14,842 Union Pacific Corp. 292,600 27,314 United Parcel Service, Inc., Cl B (b) 190,000 15,082 Waste Management, Inc. 447,900 15,811 ---------- 253,476 ---------- INFORMATION TECHNOLOGY (22.4%) Analog Devices, Inc. (b) 375,300 14,370 Automatic Data Processing, Inc. 542,000 24,759 CheckFree Corp. * (b) 728,800 36,803 Cisco Systems, Inc. * 600,000 13,002 Comverse Technology, Inc. * 720,000 16,942 Electronic Data Systems Corp. (b) 378,900 10,166
See Notes to Financial Statements. 41 SCHEDULES OF PORTFOLIO INVESTMENTS STI CLASSIC FUNDS March 31, 2006 (Amounts in thousands, except Shares) CAPITAL APPRECIATION FUND -- CONCLUDED
- ------------------------------------------------------- Shares or Principal Amount($) Value($) - ------------------------------------------------------- INFORMATION TECHNOLOGY--CONTINUED International Business Machines Corp. 370,700 30,572 Intersil Corp., Cl A (b) 456,700 13,208 LSI Logic Corp. * (b) 1,251,000 14,462 Maxim Integrated Products, Inc. 670,000 24,891 Microsoft Corp. (b) 1,550,000 42,175 Oracle Corp. * 1,174,300 16,076 Paychex, Inc. (b) 897,800 37,401 Symantec Corp. * 1,036,100 17,438 VeriSign, Inc. * (b) 552,800 13,262 ---------- 325,527 ---------- MATERIALS (1.2%) Rohm & Haas Co. 350,000 17,105 ---------- TELECOMMUNICATION SERVICES (2.1%) AT&T, Inc. (b) 650,000 17,576 Sprint Nextel Corp. 507,200 13,106 ---------- 30,682 ---------- Total Common Stocks (Cost $1,249,855) 1,415,928 ---------- SHORT-TERM INVESTMENTS (23.6%) CSFB Enhanced Liquidity Portfolio, 5.006% (c) 342,342,038 342,342 ---------- Total Short-Term Investments (Cost $342,342) 342,342 ----------
- ------------------------------------------------------- Shares or Principal Amount($) Value($) - ------------------------------------------------------- REPURCHASE AGREEMENT (2.7%) Bear Stearns & Co., Inc., 4.745% dated 03/31/06, to be repurchased on 04/03/06, repurchase price $38,668,827 (collateralized by U.S. Government Agencies, 5.000%, due 06/15/31; total market value $39,428,807) 38,654 38,654 ---------- Total Repurchase Agreement (Cost $38,654) 38,654 ---------- Total Investments (Cost $1,630,851) (a) -- 123.7% 1,796,924 Liabilities in excess of other assets -- (23.7)% (344,072) ---------- Net Assets -- 100.0% $1,452,852 ==========
- --------------- * Non-income producing security. (a)Cost for federal income tax purposes is $1,631,206 (amount in thousands). Unrealized appreciation/ (depreciation) on a tax basis is as follows (amounts in thousands): Unrealized Appreciation................ $199,024 Unrealized Depreciation................ (33,307) -------- Unrealized Appreciation (Depreciation)....................... $165,717 ========
(b)This security or a partial position of the security was on loan at March 31, 2006. The total value of securities on loan at March 31, 2006 in thousands was $332,407. (c)This security was purchased with cash collateral held from securities lending. Cl -- Class See Notes to Financial Statements. 42 SCHEDULES OF PORTFOLIO INVESTMENTS STI CLASSIC FUNDS March 31, 2006 (Amounts in thousands, except Shares) EMERGING GROWTH STOCK FUND
- --------------------------------------------------------- Shares or Principal Amount($) Value($) - --------------------------------------------------------- COMMON STOCKS (99.5%) CONSUMER DISCRETIONARY (17.8%) Blue Nile, Inc. * 37,000 1,301 Getty Images, Inc. * 14,100 1,056 Life Time Fitness, Inc. * 21,400 1,003 Martha Stewart Living Omnimedia, Inc., Cl A * 25,000 422 Monster Worldwide, Inc. * 7,300 364 Nutri/System, Inc. * 23,600 1,121 Polo Ralph Lauren Corp. 20,700 1,255 Stamps.com, Inc. * 7,800 275 Urban Outfitters, Inc. * 40,500 994 Volcom, Inc. * 24,900 885 ------- 8,676 ------- CONSUMER STAPLES (3.2%) Whole Foods Market, Inc. 23,500 1,561 ------- FINANCIALS (15.0%) BlackRock, Inc., Cl A 8,400 1,176 Calamos Asset Management, Inc., Cl A 31,200 1,167 Euronet Worldwide, Inc. * 37,900 1,434 Greenhill & Co., Inc. 10,800 714 Legg Mason, Inc. 9,500 1,191 Portfolio Recovery Associates, Inc. * 34,500 1,615 ------- 7,297 ------- HEALTH CARE (21.2%) Amylin Pharmaceuticals, Inc. * 10,600 519 Celgene Corp. * 28,000 1,238 Covance, Inc. * 17,400 1,022 Foxhollow Technologies, Inc. * 26,000 794 Gen-Probe, Inc. * 17,300 954 IDEXX Laboratories, Inc. * 6,700 579 Kyphon, Inc. * 19,500 725 Neurocrine Biosciences, Inc. * 10,350 668 Psychiatric Solutions, Inc. * 49,300 1,634 Varian Medical Systems, Inc. * 20,300 1,140
- --------------------------------------------------------- Shares or Principal Amount($) Value($) - --------------------------------------------------------- HEALTH CARE--CONTINUED Ventana Medical Systems, Inc. * 19,700 823 Vertex Pharmaceuticals, Inc. * 6,400 234 ------- 10,330 ------- INDUSTRIALS (8.1%) AirTran Holdings, Inc. * 102,900 1,863 Corporate Executive Board Co. (The) 10,000 1,009 Mobile Mini, Inc. * 16,000 495 US Airways Group, Inc. * 15,000 600 ------- 3,967 ------- INFORMATION TECHNOLOGY (25.3%) aQuantive, Inc. * 84,600 1,990 Broadcom Corp., Cl A * 23,650 1,021 Cognizant Technology Solutions Corp., Cl A * 27,800 1,654 Digital Insight Corp. * 15,600 568 F5 Networks, Inc. * 23,800 1,725 Marchex, Inc., Cl B * 10,200 219 Paychex, Inc. 24,400 1,017 SiRF Technology Holdings, Inc. * 32,800 1,161 SRA International, Inc., Cl A * 36,200 1,366 Stellent, Inc. 20,200 240 ViaSat, Inc. * 21,600 619 WebSideStory, Inc. * 40,400 694 ------- 12,274 ------- TELECOMMUNICATION SERVICES (8.9%) Crown Castle International Corp. * 18,900 536 NII Holdings, Inc. * 38,200 2,252 SBA Communications Corp., Cl A * 10,200 239 Time Warner Telecom, Inc., Cl A * 72,400 1,300 ------- 4,327 ------- Total Common Stocks (Cost $37,595) 48,432 -------
See Notes to Financial Statements. 43 SCHEDULES OF PORTFOLIO INVESTMENTS STI CLASSIC FUNDS March 31, 2006 (Amounts in thousands, except Shares) EMERGING GROWTH STOCK FUND -- CONCLUDED
- --------------------------------------------------------- Shares or Principal Amount($) Value($) - --------------------------------------------------------- REPURCHASE AGREEMENT (1.5%) Merrill Lynch & Co., Inc., 4.725%, dated 03/31/06, to be repurchased on 04/03/06, repurchase price $743,053 (collateralized by U.S. Government Agencies, 5.500%, due 02/01/35; total market value $759,090) 743 743 ------- Total Repurchase Agreement (Cost $743) 743 ------- Total Investments (Cost $38,338) (a) -- 101.0% 49,175 Liabilities in excess of other assets -- (1.0)% (472) ------- Net Assets -- 100.0% $48,703 =======
- --------------- * Non-income producing security. (a)Cost for federal income tax purposes is $38,416 (amount in thousands). Unrealized appreciation/(depreciation) on a tax basis is as follows (amounts in thousands): Unrealized Appreciation................. $11,490 Unrealized Depreciation................. (731) ------- Unrealized Appreciation (Depreciation)........................ $10,759 =======
Cl -- Class See Notes to Financial Statements. 44 SCHEDULES OF PORTFOLIO INVESTMENTS STI CLASSIC FUNDS March 31, 2006 (Amounts in thousands, except Shares) INTERNATIONAL EQUITY FUND
- ------------------------------------------------------- Shares Value($) - ------------------------------------------------------- FOREIGN COMMON STOCKS (96.7%) AUSTRALIA (4.2%) Australia & New Zealand Banking Group Ltd. 315,590 5,986 BHP Billiton Ltd. 25,863 518 Caltex Australia Ltd. 36,395 500 CSR Ltd. 163,830 523 David Jones Ltd. (b) 218,891 439 Downer EDI Ltd. 526,024 3,339 James Hardie Industries NV 70,496 478 OneSteel Ltd. 162,161 478 Pacifica Group Ltd. 11,037 16 Promina Group Ltd. 1,279,074 5,007 Qantas Airways Ltd. 1,622,863 4,112 QBE Insurance Group Ltd. 30,781 482 Rio Tinto Group Ltd. (b) 127,427 7,191 St. George Bank Ltd. 216,364 4,776 UXC Ltd. 31,881 26 Westpac Banking Corp. 325,238 5,545 Woodside Petroleum Ltd. 15,434 502 ---------- 39,918 ---------- BELGIUM (0.5%) Fortis 36,140 1,291 Fortis SA 97,746 3,487 ---------- 4,778 ---------- DENMARK (0.5%) Danske Bank A/S (b) 138,317 5,133 ---------- FINLAND (2.0%) Fortum Corp. (b) 211,388 5,333 Nokia Corp., Cl A (b) 560,165 11,593 Tietoenator Oyj (b) 56,533 2,208 ---------- 19,134 ---------- FRANCE (10.5%) Air France-KLM 93,000 2,190 Atos Origin SA * 44,653 3,309 AXA (b) 268,600 9,425 BNP Paribas (b) 119,501 11,099 BNP Paribas * 11,786 1,058 Bouygues SA 27,624 1,468 Compagnie de Saint-Gobain (b) 58,943 4,117 France Telecom SA 240,638 5,412 Lafarge SA 56,984 6,456 PSA Peugeot Citroen SA (b) 36,443 2,296 Sanofi-Aventis 65,495 6,230 Schneider Electric SA (b) 47,694 5,149
- ------------------------------------------------------- Shares Value($) - ------------------------------------------------------- FRANCE--CONTINUED Societe Generale (b) 59,815 8,994 SUEZ SA (b) 188,537 7,429 TOTAL SA 36,648 9,667 VINCI SA 67,173 6,621 Vivendi Universal SA (b) 236,326 8,115 ---------- 99,035 ---------- GERMANY (8.4%) Adidas-Salomon AG 25,398 5,026 Allianz AG 52,935 8,849 BASF AG 91,849 7,198 Bayer AG 40,174 1,611 Continental AG 56,653 6,250 DaimlerChrysler AG 41,597 2,390 Deutsche Bank AG 53,691 6,125 Deutsche Telekom AG 327,333 5,521 E.ON AG 79,806 8,785 Fresenius AG-Preferred 17,762 3,191 MAN AG 76,267 5,304 PUMA Rudolf Dassler Sport AG * 9,840 3,719 SAP AG 18,615 4,044 Schering AG 73,944 7,686 ThyssenKrupp AG 145,199 4,189 ---------- 79,888 ---------- HONG KONG (1.5%) China Mobile Ltd. 657,500 3,452 China Resources Power Holdings Co. Ltd. 1,928,000 1,404 CNOOC Ltd. 3,744,538 2,896 Guoco Group Ltd. 237,000 3,035 Wing Hang Bank Ltd. 369,500 3,103 ---------- 13,890 ---------- IRELAND (0.8%) Anglo Irish Bank Corp. PLC 94,132 1,551 CRH PLC 169,285 5,908 ---------- 7,459 ---------- ITALY (2.0%) Banca Intesa SpA 1,040,601 6,216 Benetton Group SpA 183,104 2,733 Eni SpA (b) 275,642 7,843 UniCredito Italiano SpA 356,418 2,576 ---------- 19,368 ----------
See Notes to Financial Statements. 45 SCHEDULES OF PORTFOLIO INVESTMENTS STI CLASSIC FUNDS March 31, 2006 (Amounts in thousands, except Shares) INTERNATIONAL EQUITY FUND -- CONTINUED
- ------------------------------------------------------- Shares Value($) - ------------------------------------------------------- JAPAN (24.2%) Aisin Seiki Co. Ltd. 101,700 3,958 Amano Corp. 99,600 1,735 Astellas Pharma, Inc. 56,500 2,146 Brothers Industries Ltd. 261,000 2,859 Canon, Inc. 92,700 6,136 Central Japan Railway Co. 389 3,834 Daicel Chemical Industries Ltd. 426,300 3,590 Daiichi Sankyo Co. Ltd. 106,000 2,419 Daiwa Securities Group, Inc. 482,000 6,467 DENSO Corp. 104,100 4,113 East Japan Railway Co. 249 1,845 Electric Power Development Co. Ltd. 136,140 4,315 EXEDY Corp. 57,800 1,871 Fujikura Ltd. 154,000 1,744 Fujitsu Ltd. 195,000 1,645 Honda Motor Co. Ltd. 84,800 5,253 Ibiden Co. Ltd. 41,100 2,078 ITOCHU Corp. 407,000 3,497 KDDI Corp. 248 1,326 Keisei Electric Railway Co. Ltd. 225,000 1,553 Kitz Corp. 390,000 3,738 Komatsu Ltd. 289,000 5,513 Kubota Corp. 253,000 2,730 Lawson, Inc. 23,300 877 Makita Corp. 101,600 3,134 Matsushita Electric Industrial Co. Ltd. 140,000 3,111 Mitsubishi Corp. 327,800 7,465 Mitsubishi Tokyo Financial Group, Inc. 778 11,900 Mitsubishi UFJ Securities Co. Ltd. 125,000 2,008 Mitsui Fudosan Co. Ltd. (b) 186,000 4,275 Mitsui O.S.K. Lines Ltd. 421,000 2,848 Mitsui Trust Holdings, Inc. 154,000 2,252 Mizuho Financial Group, Inc. 1,133 9,272 NGK Spark Plug Co. Ltd. 199,000 4,642 Nidec Corp. 15,600 1,281 Nihon Parkerizing Co. Ltd. 57,000 878 Nikko Cordial Corp. 245,800 4,073
- ------------------------------------------------------- Shares Value($) - ------------------------------------------------------- JAPAN--CONTINUED Nippon Telegraph & Telephone Corp. 762 3,270 NSK Ltd. 431,000 3,743 Okinawa Electric Power Co., Inc. (The) 72,900 4,380 ORIX Corp. 21,850 6,805 Ricoh Co. Ltd. 116,000 2,267 Ryohin Keikaku Co. Ltd. 47,200 3,959 Sankyo Co. Ltd. 39,800 2,739 Sega Sammy Holdings, Inc. 92,300 3,749 Shin-Etsu Chemical Co. Ltd. 50,900 2,764 Sompo Japan Insurance, Inc. 115,000 1,668 Sumitomo Chemical Co. Ltd. 228,000 1,856 Sumitomo Corp. 550,000 7,833 Sumitomo Electric Industries Ltd. 109,700 1,739 Sumitomo Metal Industries Ltd. 1,090,000 4,678 Sumitomo Mitsui Financial Group, Inc. 429 4,739 Takeda Pharmaceutical Co. Ltd. 117,500 6,700 Tokyo Ohka Kogyo Co. Ltd. 121,400 3,776 Tokyo Steel Manufacturing Co. Ltd. 121,800 2,474 Toyota Motor Corp. 245,600 13,419 Trans Cosmos, Inc. (b) 70,200 2,273 Tsubakimoto Chain Co. 321,000 2,406 UNY Co. Ltd. 163,000 2,608 Yamaha Motor Co. Ltd. 144,400 3,571 Yamatake Corp. 106,800 2,518 ---------- 228,315 ---------- NETHERLANDS (3.9%) ABN AMRO Holding NV 316,831 9,497 Akzo Nobel NV 91,512 4,856 ASML Holding NV * 79,432 1,622 ING Groep NV 255,550 10,094 Royal KPN NV (b) 306,509 3,454 Royal Philips Electronics NV (b) 231,449 7,822 ---------- 37,345 ----------
See Notes to Financial Statements. 46 SCHEDULES OF PORTFOLIO INVESTMENTS STI CLASSIC FUNDS March 31, 2006 (Amounts in thousands, except Shares) INTERNATIONAL EQUITY FUND -- CONTINUED
- ------------------------------------------------------- Shares Value($) - ------------------------------------------------------- NEW ZEALAND (0.6%) Fletcher Building Ltd. (b) 811,781 4,447 Warehouse Group Ltd. (The) 690,075 1,643 ---------- 6,090 ---------- NORWAY (2.1%) DNB NOR ASA (b) 242,711 3,270 Norsk Hydro ASA 40,511 5,615 Orkla ASA 142,191 7,055 Telenor ASA 324,482 3,492 ---------- 19,432 ---------- PORTUGAL (0.2%) Energias de Portugal SA 568,919 2,234 ---------- SINGAPORE (0.8%) Jurong Technologies Industrial Corp. Ltd. 1,649,000 1,633 SembCorp Industries Ltd. 1,188,000 2,574 United Overseas Bank Ltd. 388,354 3,750 ---------- 7,957 ---------- SOUTH KOREA (0.1%) Samsung Securities Co. Ltd. * 15,550 832 ---------- SPAIN (2.4%) Banco Santander Central Hispano SA 594,604 8,681 Endesa SA 67,106 2,166 Repsol YPF SA 200,344 5,690 Telefonica SA 292,365 4,588 Union Fenosa SA (b) 48,710 1,852 ---------- 22,977 ---------- SWEDEN (2.7%) Alfa Laval AB 81,600 2,196 Autoliv, Inc. 35,891 2,038 Nordea Bank AB 198,075 2,449 Sandvik AB 69,902 4,135 Svenska Handelsbanken AB, Cl A 112,501 3,129 Swedish Match AB 237,300 3,246 Telefonaktiebolaget LM Ericsson 2,155,989 8,197 ---------- 25,390 ---------- SWITZERLAND (6.2%) Credit Suisse Group 191,781 10,764 Nestle SA 38,841 11,533
- ------------------------------------------------------- Shares Value($) - ------------------------------------------------------- SWITZERLAND--CONTINUED Novartis AG 247,043 13,742 Roche Holding Ltd. 49,893 7,431 UBS AG 65,007 7,143 Zurich Financial Services * 33,236 7,810 ---------- 58,423 ---------- THAILAND (0.1%) Delta Electronics PCL 2,466,100 1,250 ---------- UNITED KINGDOM (23.0%) Alliance UniChem PLC 259,216 4,035 Anglo American PLC 229,699 8,851 Anglo Irish Bank Corp. PLC 160,054 2,638 AstraZeneca PLC 232,996 11,738 Aviva PLC 549,584 7,633 AWG PLC 231,247 4,596 Barratt Developments PLC 143,421 2,639 BHP Billiton PLC 452,125 8,259 Bodycote International PLC 790,000 3,788 BP PLC 1,717,138 19,717 Bradford & Bingley PLC 457,847 3,971 British Airways PLC * 828,833 5,086 British American Tobacco PLC 320,426 7,760 BT Group PLC 1,403,711 5,414 CRH PLC 8,347 292 Enterprise Inns PLC 367,105 6,071 First Choice Holidays PLC 1,273,412 4,762 GlaxoSmithKline PLC 428,317 11,198 HBOS PLC 598,043 9,984 HSBC Holdings PLC 1,053,404 17,658 National Grid PLC 486,274 4,836 Old Mutual PLC 981,776 3,432 Royal & Sun Alliance Insurance Group PLC 1,689,679 4,043 Royal Bank of Scotland Group PLC (The) 436,225 14,194 Royal Dutch Shell PLC, Cl A 485,481 15,163 Royal Dutch Shell PLC, Cl B 198,156 6,444 Scottish & Newcastle PLC 286,111 2,585 Taylor Woodrow PLC 362,715 2,546 Tomkins PLC 596,300 3,483
See Notes to Financial Statements. 47 SCHEDULES OF PORTFOLIO INVESTMENTS STI CLASSIC FUNDS March 31, 2006 (Amounts in thousands, except Shares) INTERNATIONAL EQUITY FUND -- CONCLUDED
- ------------------------------------------------------- Shares Value($) - ------------------------------------------------------- UNITED KINGDOM--CONTINUED Vodafone Group PLC 5,841,910 12,229 WH Smith PLC 236,093 1,693 ---------- 216,738 ---------- Total Foreign Common Stocks (Cost $713,341) 915,586 ---------- RIGHTS (0.0%) FRANCE (0.0%) Vinci SA, expiring 04/13/06 67,173 144 ---------- Total Rights (Cost $615) 144 ---------- SHORT-TERM INVESTMENTS (12.5%) Brown Brothers Harriman & Co., Cayman Islands Cash Sweep, 3.970% 16,511,703 16,512 CSFB Enhanced Liquidity Portfolio, 5.006% (c) 101,978,870 101,979 ---------- Total Short-Term Investments (Cost $118,491) 118,491 ---------- Total Investments (Cost $832,447) (a) -- 109.2% 1,034,221 Liabilities in excess of other assets -- (9.2)% (86,987) ---------- Net Assets -- 100.0% $ 947,234 ==========
- --------------- * Non-income producing security. (a)Cost for federal income tax purposes is $838,692 (amount in thousands). Unrealized appreciation/ (depreciation) on a tax basis is as follows (amounts in thousands): Unrealized Appreciation................. $198,968 Unrealized Depreciation................. (3,438) -------- Unrealized Appreciation (Depreciation)........................ $195,530 ========
(b)This security or a partial position of the security was on loan at March 31, 2006. The total value of securities on loan at March 31, 2006 in thousands was $97,223. (c)This security was purchased with cash collateral held from securities lending. Cl -- Class PLC -- Public Limited Company PCL -- Public Company Limited The investment concentrations for the International Equity Fund as a percentage of net assets, by industry, as of March 31, 2006, were as follows (unaudited): Consumer Discretionary 11.6% Consumer Staples 3.8 Energy 8.2 Financials 29.4 Health Care 8.1 Industrials 11.7 Information Technology 5.3 Materials 8.4 Short-Term Investments 12.5 Telecommunication Services 5.2 Utilities 5.0
See Notes to Financial Statements. 48 SCHEDULES OF PORTFOLIO INVESTMENTS STI CLASSIC FUNDS March 31, 2006 (Amounts in thousands, except Shares) INTERNATIONAL EQUITY INDEX FUND
- ------------------------------------------------------- Shares Value($) - ------------------------------------------------------- FOREIGN COMMON STOCKS (94.7%) AUSTRALIA (3.1%) Alumina Ltd. 63,113 335 Amcor Ltd. 48,118 255 AMP Ltd. 87,482 543 Australia & New Zealand Banking Group Ltd. 80,024 1,518 Australian Gas Light Co. (b) 33,400 443 BHP Billiton Ltd. 154,230 3,090 BlueScope Steel Ltd. 45,870 236 Boral Ltd. 39,864 254 Brambles Industries Ltd. 53,347 410 Coca-Cola Amatil Ltd. 44,915 232 Coles Myer Ltd. 64,040 490 Commonwealth Bank of Australia 55,727 1,807 CSL Ltd. 10,412 408 CSR Ltd. 88,300 282 Foster's Group Ltd. 109,599 417 Insurance Australia Group Ltd. (b) 87,026 341 John Fairfax Holdings Ltd. 82,219 236 Lend Lease Corp. Ltd. 27,713 275 Macquarie Bank Ltd. 13,308 616 Macquarie Infrastructure Group 145,093 396 Mayne Group Ltd. 66,774 164 Mayne Pharma Ltd. * 54,565 116 Mirvac Group Ltd. 90,741 276 National Australia Bank Ltd. 69,915 1,886 Newcrest Mining Ltd. 15,848 265 Orica Ltd. 18,249 303 Origin Energy Ltd. 63,473 333 QBE Insurance Group Ltd. 37,035 580 Rinker Group Ltd. 46,966 667 Rio Tinto Group Ltd. 12,892 728 Santos Ltd. 46,285 377 Stockland Trust Group 99,741 480 Suncorp-Metway Ltd. 39,016 543 TABCORP Holdings Ltd. 30,565 338 Telstra Corp. Ltd. (b) 113,153 303 Wesfarmers Ltd. 20,271 506 Westfield Group 71,524 875 Westpac Banking Corp. 78,972 1,346 Woodside Petroleum Ltd. 26,781 872 Woolworths Ltd. 55,678 750 -------- 24,292 --------
- ------------------------------------------------------- Shares Value($) - ------------------------------------------------------- AUSTRIA (1.7%) BOHLER-UDDEHOLM AG 3,498 721 Erste Bank der oesterreichischen Sparkassen AG 36,107 2,128 Flughafen Wien AG 3,519 276 Immofinanz Immobilien Anlagen AG * 59,027 612 Mayr Melnhof Karton AG 457 82 Meinl European Land Ltd. * 41,086 772 OMV AG 41,904 2,802 Raiffeisen International Bank-Holding AG * 7,383 630 RHI AG * 6,822 222 Telekom Austria AG 87,975 2,072 Verbund AG (b) 2,106 937 voestalpine AG 5,667 793 Wiener Staedtische Allgemeine Versicherung AG 6,465 400 Wienerberger AG 14,658 737 -------- 13,184 -------- BELGIUM (1.6%) Agfa-Gevaert NV 11,493 219 Barco NV 1,968 168 Belgacom SA 15,147 484 Delhaize Group 6,891 494 Dexia Group 48,955 1,266 Fortis 108,649 3,882 Groep Colruyt 1,892 283 Groupe Bruxelles Lambert SA 7,105 790 InBev 16,786 787 KBC Bank & Insurance Holding Co. NV 16,510 1,773 Mobistar SA 3,144 228 NV Bekaert SA 1,916 197 NV Umicore SA 2,992 414 Omega Pharma NV 2,451 150 SA D'Ieteren NV 627 188 Solvay SA 6,085 703 UCB SA 8,683 427 -------- 12,453 -------- DENMARK (1.0%) A.P. Moller-Maersk A/S 133 1,143 Carlsberg A/S, Cl B 4,050 264 Coloplast A/S, Cl B 3,444 259 Danisco A/S 5,509 446 Danske Bank A/S (b) 45,668 1,694
See Notes to Financial Statements. 49 SCHEDULES OF PORTFOLIO INVESTMENTS STI CLASSIC FUNDS March 31, 2006 (Amounts in thousands, except Shares) INTERNATIONAL EQUITY INDEX FUND -- CONTINUED
- ------------------------------------------------------- Shares Value($) - ------------------------------------------------------- DENMARK--CONTINUED DSV A/S 3,150 420 East Asiatic Co. A/S (b) 3,225 133 FLS Industries A/S (b) 5,500 221 GN Store Nord A/S 27,300 377 H. Lundbeck A/S (b) 7,700 169 Novo Nordisk A/S, Cl B 25,987 1,617 Novozymes A/S, Cl B 6,020 408 Topdanmark A/S * 2,500 313 Vestas Wind Systems A/S * 20,238 505 William Demant Holding * 3,857 256 -------- 8,225 -------- FINLAND (0.9%) Cargotec Corp., Cl B 5,572 228 Fortum Corp. 23,613 596 Kone Oyj, Cl B 6,824 281 Neste Oil Oyj (b) 8,253 284 Nokia Corp., Cl A (b) 187,100 3,872 Orion Corp., Cl B 9,100 219 Sampo PLC, Cl A (b) 22,152 466 Stora Enso Oyj (b) 30,006 462 Tietoenator Oyj 6,449 252 UPM-Kymmene Corp. (b) 24,900 588 -------- 7,248 -------- FRANCE (10.1%) Accor 15,469 892 Air France-KLM 9,858 232 Alcatel * 93,407 1,445 Alstom * 8,429 707 Atos Origin SA * 5,597 415 Autoroutes du Sud de la France 6,509 402 AXA 109,012 3,825 BNP Paribas 56,681 5,264 BNP Paribas * 5,668 509 Bouygues SA 15,726 836 Cap Gemini SA * 10,296 561 Carrefour SA 41,739 2,220 Casino Guichard-Perrachon SA 3,672 257 CNP Assurances SA 2,791 281 Compagnie de Saint-Gobain 22,702 1,586 Compagnie Generale des Etablissements Michelin 11,341 713 Credit Agricole SA 43,266 1,683 Dassault Systemes SA 4,961 284 Essilor International SA 8,425 751 Euronext Paris SA 9,442 779
- ------------------------------------------------------- Shares Value($) - ------------------------------------------------------- FRANCE--CONTINUED European Aeronautic Defence & Space Co. Eads NV 18,856 794 France Telecom SA 127,127 2,859 Gaz de France (b) 15,234 551 Gecina SA 2,652 352 Groupe Danone 17,446 2,137 Hermes International 2,010 508 Imerys 2,567 216 Klepierre 3,764 469 L'Air Liquide Prime Fidelite 972 203 L'Air Liquide SA (b) 1,676 349 L'Air Liquide SA, Registered Shares (c) 5,403 1,125 L'Oreal SA (b) 21,924 1,931 Lafarge SA 12,674 1,436 Lagardere SCA 9,056 707 LVMH Moet Hennessy Louis Vuitton SA 17,966 1,761 Pernod Ricard 5,718 1,095 Pinault-Printemps-Redoute SA 4,848 585 PSA Peugeot Citroen SA 12,175 767 Publicis Groupe SA 11,170 436 Renault SA 14,073 1,496 Sagem SA 14,584 370 Sanofi-Aventis 77,302 7,353 Schneider Electric SA 16,793 1,813 Societe BIC 4,498 302 Societe Generale 25,614 3,852 Societe Television Francaise 1 9,517 288 Sodexho Alliance SA (b) 8,825 419 SUEZ SA 74,838 2,949 Technip SA 10,636 720 Thales 7,264 323 Thomson 21,006 415 TOTAL SA 40,457 10,671 Unibail Holding 4,490 811 Valeo SA 6,474 271 Veolia Environnement SA 26,887 1,493 VINCI SA 13,154 1,297 Vivendi Universal SA 86,440 2,968 -------- 79,734 -------- GERMANY (13.5%) Adidas-Salomon AG 7,295 1,444 Allianz AG 54,254 9,068 ALTANA AG 10,379 644
See Notes to Financial Statements. 50 SCHEDULES OF PORTFOLIO INVESTMENTS STI CLASSIC FUNDS March 31, 2006 (Amounts in thousands, except Shares) INTERNATIONAL EQUITY INDEX FUND -- CONTINUED
- ------------------------------------------------------- Shares Value($) - ------------------------------------------------------- GERMANY--CONTINUED BASF AG 74,502 5,839 Bayer AG 91,678 3,677 Beiersdorf AG 3,127 452 Celesio AG 5,699 538 Commerzbank AG 83,663 3,329 Continental AG 18,701 2,063 DaimlerChrysler AG 128,114 7,360 Deutsche Bank AG 69,687 7,950 Deutsche Boerse AG 15,491 2,234 Deutsche Lufthansa AG 33,938 607 Deutsche Post AG 99,719 2,492 Deutsche Postbank AG 8,404 610 Deutsche Telekom AG 385,515 6,502 Douglas Holding AG (b) 6,789 320 E.ON AG 86,881 9,564 EPCOS AG * 10,199 135 Hochtief AG (b) 9,489 538 Hypo Real Estate Holding AG 20,765 1,427 Infineon Technologies AG * 91,532 942 Karstadt Quelle AG * 12,195 284 Linde AG 11,717 1,017 MAN AG 20,398 1,419 Merck KGaA 7,575 720 METRO AG 19,882 1,021 MLP AG 10,855 265 Muenchener Rueckversicherungs AG 27,718 3,933 PUMA Rudolf Dassler Sport AG * 2,454 927 RWE AG (b) 58,428 5,090 SAP AG 31,122 6,761 Schering AG 23,408 2,433 Siemens AG 112,406 10,477 Suedzucker AG 10,745 278 ThyssenKrupp AG 52,034 1,501 TUI AG (b) 32,991 647 Volkswagen AG 25,143 1,886 -------- 106,394 -------- GREECE (1.2%) Alpha Bank SA 33,726 1,246 Coca-Cola HBC 13,800 429 Cosmote Mobile Telecommunications SA 18,300 424 EFG Eurobank Ergasias SA 23,330 898 Emporiki Bank of Greece SA * 11,664 390 Hellenic Duty Free Shops SA 4,650 90
- ------------------------------------------------------- Shares Value($) - ------------------------------------------------------- GREECE--CONTINUED Hellenic Petroleum SA 19,180 274 Hellenic Technodomiki Tev SA 26,180 226 Hellenic Telecommunications Organization SA * 38,430 857 Intracom SA 21,330 154 National Bank of Greece SA 31,789 1,494 OPAP SA 28,800 1,101 Piraeus Bank SA 24,000 727 Public Power Corp. SA 15,540 365 Technical Olympic SA 19,060 115 Titan Cement Co. SA 6,180 295 Viohalco SA 18,180 183 -------- 9,268 -------- HONG KONG (0.8%) Bank of East Asia Ltd. 112,168 406 BOC Hong Kong (Holdings) Ltd. 159,500 321 Cheung Kong (Holdings) Ltd. 61,000 646 CLP Holdings Ltd. 64,100 374 Esprit Holdings Ltd. 44,500 346 Hang Seng Bank Ltd. 27,400 353 Henderson Land Development Co. Ltd. 47,000 260 Hong Kong & China Gas Co. Ltd. (The) 166,237 402 Hongkong Electric Holdings Ltd. 64,000 301 Hutchison Telecommunications International Ltd. * 95,827 164 Hutchison Whampoa Ltd. 77,080 706 Johnson Electric Holdings Ltd. 143,000 134 Li & Fung Ltd. 134,000 302 PCCW Ltd. 285,326 186 Sun Hung Kai Properties Ltd. 55,600 565 Swire Pacific Ltd. 51,500 504 Wharf (Holdings) Ltd. (The) 84,000 309 -------- 6,279 -------- IRELAND (1.0%) Allied Irish Banks PLC 78,799 1,880 Bank of Ireland 32,464 863 Bank of Ireland 59,268 1,102 CRH PLC 46,781 1,633 DEPFA Bank PLC 51,754 922 Elan Corp. PLC * 19,127 276
See Notes to Financial Statements. 51 SCHEDULES OF PORTFOLIO INVESTMENTS STI CLASSIC FUNDS March 31, 2006 (Amounts in thousands, except Shares) INTERNATIONAL EQUITY INDEX FUND -- CONTINUED
- ------------------------------------------------------- Shares Value($) - ------------------------------------------------------- IRELAND--CONTINUED Independent News & Media PLC (d) 154 0 Independent News & Media PLC 28,100 91 Irish Life & Permanent PLC 28,797 691 Kerry Group PLC 12,392 298 Kerry Group PLC, Cl A 6,213 217 -------- 7,973 -------- ITALY (8.1%) Alleanza Assicurazioni SpA 53,163 632 Arnoldo Mondadori Editore SpA 19,049 187 Assicurazioni Generali SpA 138,504 5,216 Autogrill SpA 18,639 276 Autostrade SpA (b) 46,095 1,140 Banca Antoniana Popolare Veneta SpA 16,819 540 Banca Fideuram SpA 52,832 304 Banca Intesa SpA 576,498 3,444 Banca Intesa SpA 135,234 765 Banca Monte dei Paschi di Siena SpA (b) 178,516 1,005 Banca Nazionale del Lavoro SpA * 173,563 614 Banca Popolare di Milano Scarl SpA 66,792 788 Banche Popolari Unite SpA 56,574 1,372 Banco Popolare di Verona e Novara Scrl SpA 58,213 1,541 Benetton Group SpA 14,363 214 Bulgari SpA 23,456 282 Capitalia SpA 302,915 2,518 Enel SpA 631,792 5,343 Eni SpA 382,686 10,888 Fiat SpA * (b) 84,596 1,066 Finmeccanica SpA 42,026 954 Gruppo Editoriale L'Espresso SpA (b) 32,847 172 Italcementi SpA 12,881 309 Luxottica Group SpA 22,276 613 Mediaset SpA 119,288 1,405 MEDIOBANCA -- Banca di Credito Finanziario SpA 74,692 1,602 Mediolanum SpA (b) 43,254 343 Pirelli & C. SpA 450,080 429 Sanpaolo IMI SpA 160,927 2,880
- ------------------------------------------------------- Shares Value($) - ------------------------------------------------------- ITALY--CONTINUED Seat Pagine Gialle SpA * 742,231 355 Snam Rete Gas SpA 152,456 674 Telecom Italia Media SpA * 357,939 193 Telecom Italia RNC SpA 838,232 2,232 Telecom Italia SpA (b) 1,564,259 4,563 Terna SpA 180,862 476 Tiscali SpA * 46,272 151 UniCredito Italiano SpA 1,171,164 8,465 -------- 63,951 -------- JAPAN (27.4%) 77 Bank Ltd. 33,000 254 Acom Co. Ltd. 6,470 380 Advantest Corp. 6,100 727 AEON Co. Ltd. 50,100 1,215 AEON Credit Service Co. Ltd. 9,000 272 Aiful Corp. 5,800 384 Aisin Seiki Co. Ltd. 15,500 603 Ajinomoto Co., Inc. 44,000 470 All Nippon Airways Co. Ltd. (b) 55,000 201 Alps Electric Co. Ltd. 17,800 287 Amada Co. Ltd. 34,000 371 Aoyama Trading Co. Ltd. 6,100 202 Ariake Japan Co. Ltd. 4,840 144 Asahi Breweries Ltd. 30,400 431 Asahi Glass Co. Ltd. (b) 74,000 1,106 Asahi Kasei Corp. 96,000 684 Astellas Pharma, Inc. 41,461 1,575 Bank of Fukuoka Ltd. (The) (b) 49,000 413 Bank of Yokohama Ltd. (The) 96,000 786 Benesse Corp. 6,100 218 Bridgestone Corp. 52,000 1,085 Canon, Inc. 56,200 3,720 Casio Computer Co. Ltd. 20,300 361 Central Glass Co. Ltd. 17,000 99 Central Japan Railway Co. 123 1,212 Chiba Bank Ltd. (The) 61,000 543 Chubu Electric Power Co., Inc. (b) 43,900 1,100 Chugai Pharmaceutical Co. Ltd. 22,900 415 Citizen Watch Co. Ltd. 36,100 341 COMSYS Holdings Corp. 13,000 186 Credit Saison Co. Ltd. 14,200 786 CSK Corp. 5,900 293
See Notes to Financial Statements. 52 SCHEDULES OF PORTFOLIO INVESTMENTS STI CLASSIC FUNDS March 31, 2006 (Amounts in thousands, except Shares) INTERNATIONAL EQUITY INDEX FUND -- CONTINUED
- ------------------------------------------------------- Shares Value($) - ------------------------------------------------------- JAPAN--CONTINUED Dai Nippon Printing Co. Ltd. 47,000 851 Daiichi Sankyo Co. Ltd. 50,325 1,148 Daikin Industries Ltd. 17,700 620 Daimaru, Inc. (The) 20,000 295 Dainippon Ink & Chemicals, Inc. 67,000 249 Daito Trust Construction Co. Ltd. 6,900 360 Daiwa House Industry Co. Ltd. 39,000 676 Daiwa Securities Group, Inc. 101,000 1,355 Denki Kagaku Kogyo KK 49,000 219 DENSO Corp. 39,300 1,553 Dentsu, Inc. 146 530 DOWA Mining Co. Ltd. 25,000 298 East Japan Railway Co. 262 1,941 Ebara Corp. 33,000 208 Eisai Co. Ltd. 19,600 854 Electric Power Development Co. Ltd. 12,720 403 FamilyMart Co. Ltd. 6,500 204 FANUC Ltd. 13,800 1,329 Fast Retailing Co. Ltd. 4,300 421 Fuji Electric Co. Ltd. 55,000 300 Fuji Photo Film Co. Ltd. 37,100 1,239 Fuji Television Network, Inc. 58 145 Fujikura Ltd. 34,000 385 Fujitsu Ltd. 137,000 1,156 Furukawa Electric Co. Ltd. (The) 52,000 431 Gunma Bank Ltd. (The) 42,000 318 Hino Motors Ltd. 26,000 163 Hirose Electric Co. Ltd. 2,900 408 Hitachi Cable Ltd. 29,000 165 Hitachi Chemical Co. Ltd. 9,500 273 Hitachi Ltd. 236,000 1,671 Hokkaido Electric Power Co., Inc. 11,600 249 Hokuhoku Financial Group, Inc. 96,000 422 Honda Motor Co. Ltd. 60,100 3,723 Hoya Corp. 33,800 1,364 Ibiden Co. Ltd. 11,000 556 Isetan Co. Ltd. 16,200 353 Ishikawajima-Harima Heavy Industries Co. Ltd. (b) 104,000 330 ITOCHU Corp. 122,000 1,048
- ------------------------------------------------------- Shares Value($) - ------------------------------------------------------- JAPAN--CONTINUED ITOCHU Techno-Science Corp. 3,100 122 JAFCO Co. Ltd. 3,200 241 Japan Airlines Corp. (b) 67,000 175 Japan Real Estate Investment Corp. 39 338 Japan Retail Fund Investment Corp. 36 281 Japan Tobacco, Inc. 350 1,231 JFE Holdings, Inc. 43,575 1,759 JGC Corp. 20,000 393 Joyo Bank Ltd. (The) 65,300 461 JSR Corp. (b) 15,000 446 Kajima Corp. 76,000 475 Kamigumi Co. Ltd. 28,000 223 Kaneka Corp. 25,000 300 Kansai Electric Power Co., Inc. (The) 52,300 1,162 Kansai Paint Co. Ltd. 27,000 248 Kao Corp. 37,000 975 Katokichi Co. Ltd. 21,100 144 Kawasaki Heavy Industries Ltd. (b) 111,000 390 Kawasaki Kisen Kaisha Ltd. (b) 48,000 283 KDDI Corp. 194 1,037 Keihin Electric Express Railway Co. Ltd. (b) 53,000 435 Keio Electric Railway Co. Ltd. 58,000 383 Keyence Corp. 2,860 744 Kikkoman Corp. 14,000 158 Kinden Corp. 19,000 172 Kinki Nippon Railway Co. Ltd. 140,250 547 Kirin Brewery Co. Ltd. 59,000 803 Kobe Steel Ltd. 225,000 855 Kokuyo Co. Ltd. 13,700 207 Komatsu Ltd. 70,000 1,335 Konami Corp. 8,900 224 Konica Minolta Holdings, Inc. 39,000 498 Kubota Corp. 82,000 885 Kuraray Co. Ltd. 31,500 370 Kurita Water Industries Ltd. 12,400 266 Kyocera Corp. 12,400 1,098 Kyowa Hakko Kogyo Co. Ltd. 29,000 212 Kyushu Electric Power Co., Inc. 27,100 611 Lawson, Inc. 5,500 207
See Notes to Financial Statements. 53 SCHEDULES OF PORTFOLIO INVESTMENTS STI CLASSIC FUNDS March 31, 2006 (Amounts in thousands, except Shares) INTERNATIONAL EQUITY INDEX FUND -- CONTINUED
- ------------------------------------------------------- Shares Value($) - ------------------------------------------------------- JAPAN--CONTINUED Leopalace21 Corp. 11,000 413 Mabuchi Motor Co. Ltd. 3,500 180 Makita Corp. 13,300 410 Marubeni Corp. 114,000 597 Marui Co. Ltd. 25,300 500 Matsumotokiyoshi Co. Ltd. 5,200 149 Matsushita Electric Industrial Co. Ltd. 157,880 3,508 Matsushita Electric Works Ltd. 27,000 324 Meiji Seika Kaisha Ltd. 38,000 194 Meitec Corp. 5,100 168 Millea Holdings, Inc. 109 2,158 Minebea Co. Ltd. 39,000 269 Mitsubishi Chemical Holdings Corp. 94,500 583 Mitsubishi Corp. 105,200 2,396 Mitsubishi Electric Corp. 144,000 1,222 Mitsubishi Estate Co. Ltd. 85,000 2,015 Mitsubishi Gas Chemical Co., Inc. 35,000 427 Mitsubishi Heavy Industries Ltd. 235,000 1,118 Mitsubishi Logistics Corp. (b) 14,000 224 Mitsubishi Materials Corp. (b) 82,000 438 Mitsubishi Rayon Co. Ltd. 53,000 434 Mitsubishi Tokyo Financial Group, Inc. 651 9,960 Mitsui & Co. Ltd. (b) 124,000 1,793 Mitsui Chemicals, Inc. 53,000 390 Mitsui Engineering & Shipbuilding Co. Ltd. 73,000 237 Mitsui Fudosan Co. Ltd. 61,000 1,402 Mitsui Mining & Smelting Co. Ltd. 49,000 343 Mitsui O.S.K. Lines Ltd. (b) 90,000 609 Mitsui Sumitomo Insurance Co. Ltd. 91,340 1,243 Mitsui Trust Holdings, Inc. 44,000 643 Mitsukoshi Ltd. (b) 39,000 250 Mizuho Financial Group, Inc. 732 5,991 Murata Manufacturing Co. Ltd. 15,900 1,077 Namco Bandai Holdings, Inc. 20,050 275 NEC Corp. 145,000 1,019 NEC Electronics Corp. (b) 4,200 171 Net One Systems Co. Ltd. 58 119 NGK Insulators Ltd. (b) 25,000 367
- ------------------------------------------------------- Shares Value($) - ------------------------------------------------------- JAPAN--CONTINUED NGK Spark Plug Co. Ltd. 18,000 420 Nichii Gakkan Co. 3,700 86 Nidec Corp. 8,700 714 Nikko Cordial Corp. 66,500 1,102 Nikon Corp. 24,000 430 Nintendo Co. Ltd. 7,700 1,152 Nippon Building Fund, Inc. (b) 37 343 Nippon Electric Glass Co. Ltd. 17,000 423 Nippon Express Co. Ltd. (b) 76,000 431 Nippon Meat Packers, Inc. 16,000 168 Nippon Mining Holdings, Inc. 64,000 540 Nippon Oil Corp. 99,000 776 Nippon Sheet Glass Co. Ltd. (b) 38,000 212 Nippon Steel Corp. * 472,000 1,829 Nippon Telegraph & Telephone Corp. 388 1,665 Nippon Unipac Holding 84 363 Nippon Yusen KK 89,000 544 Nissan Chemical Industries Ltd. 18,000 306 Nissan Motor Co. Ltd. 173,400 2,060 Nisshin Seifun Group, Inc. 18,300 187 Nisshin Steel Co. Ltd. 82,000 284 Nissin Food Products Co. Ltd. 7,300 226 Nitto Denko Corp. 12,800 1,087 NOK Corp. 9,200 248 Nomura Holdings, Inc. 136,200 3,038 Nomura Research Institute Ltd. 2,200 270 NSK Ltd. 41,000 356 NTN Corp. 37,000 293 NTT DATA Corp. 104 500 NTT DoCoMo, Inc. 1,280 1,893 Obayashi Corp. 52,000 423 OBIC Co. Ltd. 800 169 Odakyu Electric Railway Co. Ltd. (b) 68,000 421 Oji Paper Co. Ltd. (b) 66,000 406 Oki Electric Industry Co. Ltd. (b) 56,000 179 Olympus Corp. 19,000 559 OMRON Corp. 18,600 534 Onward Kashiyama Co. Ltd. 14,000 247 Oracle Corp. Japan (b) 3,200 160 Oriental Land Co. Ltd. 4,800 279
See Notes to Financial Statements. 54 SCHEDULES OF PORTFOLIO INVESTMENTS STI CLASSIC FUNDS March 31, 2006 (Amounts in thousands, except Shares) INTERNATIONAL EQUITY INDEX FUND -- CONTINUED
- ------------------------------------------------------- Shares Value($) - ------------------------------------------------------- JAPAN--CONTINUED ORIX Corp. 6,590 2,052 Osaka Gas Co. Ltd. 161,000 586 Pioneer Corp. 16,300 263 Promise Co. Ltd. 8,000 484 Rakuten, Inc. 341 310 Resona Holdings, Inc. * 350 1,205 Ricoh Co. Ltd. 52,000 1,016 ROHM Co. Ltd. 8,400 889 Sankyo Co. Ltd. 4,600 317 SANYO Electric Co. Ltd. * (b) 145,000 398 Sapporo Holdings Ltd. (b) 36,000 188 Secom Co. Ltd. 16,000 818 Sega Sammy Holdings, Inc. 11,704 475 Seiko Epson Corp. (b) 9,700 268 Sekisui Chemical Co. Ltd. 42,000 356 Sekisui House Ltd. 37,000 552 Seven & I Holdings Co. Ltd. 61,040 2,417 Sharp Corp. 73,000 1,293 Shimamura Co. Ltd. 2,000 233 Shimano, Inc. 8,300 250 Shimizu Corp. (b) 51,000 371 Shin-Etsu Chemical Co. Ltd. 29,200 1,586 Shinsei Bank Ltd. 74,000 518 Shionogi & Co. Ltd. 26,000 427 Shiseido Co. Ltd. 29,000 540 Shizuoka Bank Ltd. (The) 48,000 485 Showa Denko KK 93,000 413 Showa Shell Sekiyu KK 19,100 217 Skylark Co. Ltd. 10,300 184 SMC Corp. 4,300 670 Softbank Corp. (b) 56,700 1,662 Sompo Japan Insurance, Inc. 64,000 928 Sony Corp. 76,200 3,529 Stanley Electric Co. Ltd. 14,400 307 Sumitomo Chemical Co. Ltd. 115,000 936 Sumitomo Corp. 87,000 1,239 Sumitomo Electric Industries Ltd. 54,500 864 Sumitomo Heavy Industries Ltd. 48,000 461 Sumitomo Metal Industries Ltd. 322,000 1,382 Sumitomo Metal Mining Co. Ltd. 43,000 600 Sumitomo Mitsui Financial Group, Inc. 457 5,048
- ------------------------------------------------------- Shares Value($) - ------------------------------------------------------- JAPAN--CONTINUED Sumitomo Realty & Development Co. Ltd. 31,000 859 Sumitomo Trust & Banking Co. Ltd. (The) 97,000 1,123 Suruga Bank Ltd. 21,000 284 Suzuken Co. Ltd. 6,400 201 T&D Holdings, Inc. 17,500 1,368 Taiheiyo Cement Corp. 77,000 372 Taisei Corp. 78,000 374 Taisho Pharmaceutical Co. Ltd. 12,000 242 Taiyo Yuden Co. Ltd. 16,000 254 Takara Holdings, Inc. (b) 24,000 147 Takashimaya Co. Ltd. (b) 23,000 351 Takeda Pharmaceutical Co. Ltd. 66,500 3,792 Takefuji Corp. 9,400 592 TDK Corp. 9,800 739 Teijin Ltd. 70,000 466 Teikoku Oil Co. Ltd. (e) 25,000 303 Terumo Corp. 14,000 460 THK Co. Ltd. 9,700 312 TIS, Inc. 4,100 111 Tobu Railway Co. Ltd. 86,000 452 Toho Co. Ltd. 14,400 278 Tohoku Electric Power Co., Inc. 32,100 694 Tokyo Broadcasting System, Inc. 5,200 140 Tokyo Electric Power Co., Inc. (The) 83,300 2,078 Tokyo Electron Ltd. 12,900 890 Tokyo Gas Co. Ltd. 164,000 718 Tokyu Corp. 77,000 519 TonenGeneral Sekiyu KK (b) 29,000 295 Toppan Printing Co. Ltd. 44,000 610 Toray Industries, Inc. 104,000 852 Toshiba Corp. (b) 224,000 1,302 Tosoh Corp. 46,000 230 Tostem Inax Holding Corp. 20,512 441 TOTO Ltd. 23,700 220 Toyo Seikan Kaisha Ltd. 13,600 247 Toyobo Co. Ltd. 74,000 229 Toyota Industries Corp. 14,300 584 Toyota Motor Corp. 217,800 11,902 Trend Micro, Inc. 8,500 298 Ube Industries Ltd. 88,000 259 Uni-Charm Corp. 4,200 206
See Notes to Financial Statements. 55 SCHEDULES OF PORTFOLIO INVESTMENTS STI CLASSIC FUNDS March 31, 2006 (Amounts in thousands, except Shares) INTERNATIONAL EQUITY INDEX FUND -- CONTINUED
- ------------------------------------------------------- Shares Value($) - ------------------------------------------------------- JAPAN--CONTINUED UNY Co. Ltd. 16,000 256 Ushio, Inc. 12,600 300 USS Co. Ltd. 2,960 202 Wacoal Corp. (b) 16,000 218 West Japan Railway Co. 148 625 Yahoo Japan Corp. 1,180 720 Yakult Honsha Co. Ltd. 10,700 257 Yamada Denki Co. Ltd. 6,200 715 Yamaha Corp. 16,800 297 Yamaha Motor Co. Ltd. 16,900 418 Yamato Transport Co. Ltd. 33,000 676 Yamazaki Baking Co. Ltd. 12,000 94 Yokogawa Electric Corp. 20,400 363 -------- 216,382 -------- LUXEMBOURG (0.2%) Arcelor SA 39,082 1,540 -------- NETHERLANDS (2.2%) ABN AMRO Holding NV 77,875 2,334 AEGON NV 62,955 1,165 Akzo Nobel NV 12,485 662 ASML Holding NV * 23,070 471 Heineken NV 10,607 403 ING Groep NV 83,043 3,281 QIAGEN NV * 22,416 331 Reed Elsevier NV 32,291 463 Rodamco Europe NV 3,388 340 Royal Ahold NV * 71,201 560 Royal DSM NV (b) 7,972 364 Royal KPN NV (b) 92,122 1,038 Royal Numico NV * 7,799 345 Royal Philips Electronics NV (b) 57,169 1,932 TPG NV (b) 20,984 726 Unilever NV 24,046 1,670 Vedior NV 8,995 176 VNU NV 11,530 375 Wolters Kluwer NV 14,716 367 -------- 17,003 -------- NEW ZEALAND (0.3%) Auckland International Airport Ltd. (b) 234,694 295 Fisher & Paykel Appliances Holdings Ltd. 82,613 216 Fisher & Paykel Healthcare Corp. Ltd. 117,402 299
- ------------------------------------------------------- Shares Value($) - ------------------------------------------------------- NEW ZEALAND--CONTINUED Fletcher Building Ltd. (b) 86,473 474 Sky City Entertainment Group Ltd. 111,276 367 Telecom Corp. of New Zealand Ltd. 263,776 898 Warehouse Group Ltd. (The) 57,324 137 -------- 2,686 -------- NORWAY (1.6%) Acergy SA * 27,200 428 DNB NOR ASA (b) 93,740 1,263 Frontline Ltd. (b) 8,400 280 Norsk Hydro ASA 20,560 2,850 Norske Skogindustrier ASA 24,150 409 Orkla ASA (b) 26,600 1,320 Petroleum Geo-Services ASA * 9,354 436 Schibsted ASA 10,600 292 Ship Finance International Ltd. 420 7 Statoil ASA 87,400 2,522 Storebrand ASA (b) 42,000 470 Tandberg ASA 23,694 214 Telenor ASA 105,400 1,134 Tomra Systems ASA (b) 31,350 251 Yara International ASA 30,840 491 -------- 12,367 -------- PORTUGAL (1.0%) Banco BPI SA 100,190 714 Banco Comercial Portugues SA 392,928 1,252 Banco Espirito Santo SA 24,294 443 Brisa-Auto-estradas de Portugal SA 81,666 804 CIMPOR-Cimentos de Portugal SGPS SA 50,980 340 Energias de Portugal SA 328,079 1,288 Keppel Corp. Ltd. 39,000 333 Portugal Telecom SGPS SA 145,313 1,763 PT Multimedia-Servicos de Telecomunicacoes e Multimedia, SGPS, SA 22,010 269 Sonae SGPS SA 263,119 430 -------- 7,636 -------- SINGAPORE (0.4%) City Developments Ltd. 41,000 274 DBS Group Holdings Ltd. 52,467 529
See Notes to Financial Statements. 56 SCHEDULES OF PORTFOLIO INVESTMENTS STI CLASSIC FUNDS March 31, 2006 (Amounts in thousands, except Shares) INTERNATIONAL EQUITY INDEX FUND -- CONTINUED
- ------------------------------------------------------- Shares Value($) - ------------------------------------------------------- SINGAPORE--CONTINUED Oversea-Chinese Banking Corp. Ltd. 129,700 538 Singapore Airlines Ltd. 31,000 269 Singapore Press Holdings Ltd. 108,750 303 Singapore Telecommunications Ltd. 279,580 459 United Overseas Bank Ltd. 60,000 580 United Overseas Land Ltd. 139,300 249 Venture Corp. Ltd. 20,000 158 -------- 3,359 -------- SPAIN (4.9%) Abertis Infraestructuras SA (b) 24,321 630 Acciona SA 3,405 530 Acerinox SA 21,638 354 Actividades de Construccion y Servicios SA (ACS) 23,532 914 Altadis SA 25,755 1,155 Antena 3 de Television SA (b) 11,026 284 Banco Bilbao Vizcaya Argentaria SA (b) 288,788 6,027 Banco Popular Espanol SA (b) 80,473 1,186 Banco Santander Central Hispano SA 511,482 7,469 Corporacion Mapfre SA 13,595 277 Endesa SA 81,109 2,619 Fomento de Construcciones y Contratas SA 5,350 396 Gamesa Corporacion Tecnologica SA 19,313 371 Gas Natural SDG SA (b) 17,392 503 Grupo Ferrovial SA 6,761 546 Iberdrola SA 72,806 2,350 Iberia Lineas Aereas de Espana SA 68,997 191 Indra Sistemas SA 19,673 400 Industria de Diseno Textil SA 20,634 796 Metrovacesa SA 6,916 587 Promotora de Informaciones SA (b) 10,167 188 Repsol YPF SA 81,408 2,312 Sacyr Vallehermoso Group SA (b) 14,335 488 Sociedad General de Aguas de Barcelona SA, Cl A 10,872 285 Sogecable SA * (b) 3,364 134
- ------------------------------------------------------- Shares Value($) - ------------------------------------------------------- SPAIN--CONTINUED Telefonica Publicidad e Informacion SA (b) 23,786 265 Telefonica SA 391,569 6,145 Union Fenosa SA 20,860 793 Zeltia SA * (b) 26,016 206 -------- 38,401 -------- SWEDEN (1.7%) ASSA ABLOY AB 17,600 327 Atlas Copco AB, Cl A 21,700 610 Atlas Copco AB, Cl B 15,541 406 Electrolux AB, Ser B 17,900 514 Gambro AB, Cl A (b) 16,600 198 H&M Hennes & Mauritz AB 23,900 872 Nordea Bank AB 112,000 1,385 Sandvik AB 11,500 680 Scania AB, Cl B 5,727 249 Securitas AB, Cl B (b) 19,400 374 Skandinaviska Enskilda Banken AB (b) 27,200 674 Skanska AB, Cl B (b) 25,100 411 SKF AB, Cl B 27,400 447 Svenska Cellulosa AB ACA 8,500 373 Svenska Handelsbanken AB, Cl A 26,800 745 Swedish Match AB 23,600 323 Tele2 AB, Cl B 21,500 254 Telefonaktiebolaget LM Ericsson 750,800 2,856 TeliaSonera AB 99,500 597 Volvo AB, Cl A 5,557 254 Volvo AB, Cl B 11,550 541 -------- 13,090 -------- SWITZERLAND (1.8%) ABB Ltd. * 39,590 500 Adecco SA 3,462 194 Compagnie Financiere Richemont SA 11,282 541 Credit Suisse Group 24,737 1,388 Holcim Ltd. 4,211 335 Nestle SA 7,389 2,194 Novartis AG 42,866 2,385 Roche Holding Ltd. 13,497 2,010 STMicroelectronics NV 47,776 883 Swiss Reinsurance Co. 6,788 474 Swisscom AG 772 250 Syngenta AG * 2,815 396
See Notes to Financial Statements. 57 SCHEDULES OF PORTFOLIO INVESTMENTS STI CLASSIC FUNDS March 31, 2006 (Amounts in thousands, except Shares) INTERNATIONAL EQUITY INDEX FUND -- CONTINUED
- ------------------------------------------------------- Shares Value($) - ------------------------------------------------------- SWITZERLAND--CONTINUED UBS AG 21,070 2,315 Zurich Financial Services * 2,862 673 -------- 14,538 -------- UNITED KINGDOM (10.2%) 3i Group PLC 22,449 367 AMVESCAP PLC 30,877 288 Anglo American PLC 42,329 1,631 ARM Holdings PLC 68,892 159 AstraZeneca PLC 48,428 2,440 Aviva PLC 70,518 979 BAA PLC 37,051 534 BAE Systems PLC 104,732 766 Barclays PLC 190,195 2,225 BG Group PLC 118,488 1,481 BHP Billiton PLC 74,562 1,362 BOC Group PLC (The) 15,762 424 Boots Group PLC 18,972 237 BP PLC 623,176 7,156 Brambles Industries PLC 34,279 257 British American Tobacco PLC 49,281 1,193 British Land Co. PLC (The) 21,472 463 British Sky Broadcasting Group PLC 37,484 352 BT Group PLC 254,308 981 Bunzl PLC 30,585 363 Burberry Group PLC 20,572 166 Cable & Wireless PLC 88,281 168 Cadbury Schweppes PLC 60,753 604 Capita Group PLC (The) 28,570 228 Carnival PLC 5,820 286 Centrica PLC 110,064 538 Compass Group PLC 78,125 310 Cookson Group PLC * 11,481 103 Corus Group PLC 154,833 237 Daily Mail & General Trust PLC 10,695 129 Diageo PLC 88,032 1,386 Dixons Group PLC 67,720 217 Elan Corp., PLC * 18,086 262 Electrocomponents PLC 28,770 140 EMAP PLC 12,396 190 EMI Group PLC 35,036 154 Enterprise Inns PLC 16,127 267 Friends Provident PLC 58,638 212 Gallaher Group PLC 25,629 374 GKN PLC 36,074 208
- ------------------------------------------------------- Shares Value($) - ------------------------------------------------------- UNITED KINGDOM--CONTINUED GlaxoSmithKline PLC 177,572 4,643 GUS PLC 28,022 514 Hammerson PLC 16,989 366 Hanson PLC 25,000 327 Hays PLC 72,491 204 HBOS PLC 116,309 1,942 HSBC Holdings PLC 330,660 5,543 Imperial Chemical Industries PLC 43,211 260 Imperial Tobacco Group PLC 23,445 695 InterContinental Hotels Group PLC (b) 18,942 310 International Power PLC 62,672 308 Invensys PLC * 243,533 97 ITV PLC 137,968 286 J Sainsbury PLC 48,992 283 Johnson Matthey PLC 10,122 245 Kelda Group PLC 24,763 339 Kingfisher PLC 80,666 336 Ladbroke PLC (b) 59,583 403 Land Securities Group PLC 17,875 599 Legal & General Group PLC 166,002 409 Liberty International PLC 16,465 337 Lloyds TSB Group PLC 168,075 1,607 LogicaCMG PLC 48,025 163 Man Group PLC 11,407 488 Marks & Spencer Group PLC 56,664 548 Mitchells & Butlers PLC 31,322 260 National Grid PLC 83,774 833 Next PLC 9,555 274 Old Mutual PLC 179,031 626 Pearson PLC 26,082 362 Provident Financial PLC 20,451 251 Prudential PLC 69,523 806 Reckitt Benckiser PLC 18,923 666 Reed Elsevier PLC 40,925 392 Rentokil Initial PLC 85,288 231 Reuters Group PLC 47,450 327 Rexam PLC 19,606 190 Rio Tinto PLC 31,772 1,613 Rolls-Royce Group PLC, Cl B 2,973,310 5 Rolls-Royce PLC 55,266 440 Royal & Sun Alliance Insurance Group PLC 106,392 255 Royal Bank of Scotland Group PLC (The) 95,726 3,115 Royal Dutch Shell PLC, Cl A 118,435 3,699
See Notes to Financial Statements. 58 SCHEDULES OF PORTFOLIO INVESTMENTS STI CLASSIC FUNDS March 31, 2006 (Amounts in thousands, except Shares) INTERNATIONAL EQUITY INDEX FUND -- CONTINUED
- ------------------------------------------------------- Shares Value($) - ------------------------------------------------------- UNITED KINGDOM--CONTINUED Royal Dutch Shell PLC, Cl B 79,740 2,593 SABMiller PLC 27,783 548 Sage Group PLC (The) 52,374 250 Scottish & Newcastle PLC 33,242 300 Scottish & Southern Energy PLC 31,147 613 Scottish Power PLC 65,164 659 Severn Trent PLC 16,074 312 Slough Estates PLC 26,485 307 Smith & Nephew PLC 33,598 298 Smiths Group PLC 22,415 383 Tesco PLC 242,343 1,389 Tomkins PLC 39,274 229 Trinity Mirror PLC 15,764 156 Unilever PLC 82,706 846 United Utilities PLC 33,365 400 Vodafone Group PLC 1,903,577 3,985 Whitbread PLC 13,595 280 William Hill Organization Ltd. 20,301 211 Wolseley PLC 24,242 595 WPP Group PLC 36,928 443 Yell Group PLC 28,089 266 -------- 80,497 -------- Total Foreign Common Stocks (Cost $511,674) 746,500 -------- FOREIGN PREFERRED STOCK (0.6%) GERMANY (0.6%) Fresenius Medical Care AG 9,344 1,116 Henkel KGaA, Vorzug 8,052 942 Porsche AG 1,191 1,138 ProSiebenSat.1 Media AG 12,482 325 RWE AG Pfd 5,555 435 Volkswagen AG 15,594 851 -------- Total Foreign Preferred Stock (Cost $2,969) 4,807 -------- EXCHANGE TRADED FUNDS (2.1%) iShares MSCI EAFE Index Fund (b) 156,932 10,204 iShares MSCI Germany Index Fund 62,976 1,452 iShares MSCI Italy Index Fund 65,210 1,819 iShares MSCI Japan Index Fund (b) 200,300 2,884 -------- Total Exchange Traded Funds (Cost $15,170) 16,359 --------
- ------------------------------------------------------- Shares Value($) - ------------------------------------------------------- RIGHTS (0.0%) FRANCE (0.0%) Vinci SA, expiring 04/13/06 13,154 28 -------- Total Rights (Cost $100) 28 -------- SHORT-TERM INVESTMENTS (10.9%) Brown Brothers Harriman & Co., Cayman Islands Cash Sweep, 3.970% 18,869,140 18,869 CSFB Enhanced Liquidity Portfolio, 5.006% (f) 67,285,280 67,285 -------- Total Short-Term Investments (Cost $86,154) 86,154 -------- Total Investments (Cost $616,067) (a) -- 108.3% 853,848 Liabilities in excess of other assets -- (8.3)% (65,183) -------- Net Assets -- 100.0% $788,665 ========
- --------------- * Non-income producing security. (a)Cost for federal income tax purposes is $637,018 (amount in thousands). Unrealized appreciation/ (depreciation) on a tax basis is as follows (amounts in thousands): Unrealized Appreciation................. $231,004 Unrealized Depreciation................. (14,174) -------- Unrealized Appreciation (Depreciation)........................ $216,830 ========
(b)This security or a partial position of the security was on loan at March 31, 2006. The total value of securities on loan at March 31, 2006 in thousands was $64,328. (c)Rule 144A, Section 4(2) or other security which is restricted as to resale to institutional investors. The Fund's advisor has deemed these securities to be illiquid based upon procedures approved by the Board of Trustees. The restricted securities held by the Fund as of March 31, 2006 are identified below (in thousands):
ACQUISITION PERCENT OF ISSUE DESCRIPTION DATE COST SHARES VALUE NET ASSETS - ----------------- ----------- ---- ------ ------ ---------- L'Air Liquide SA, Registered Shares * $649 5,403 $1,125 0.14%
* 1,526 shares of this security was acquired on 09/26/03, 167 shares on 11/15/04 and 3,710 shares on 02/08/06. (d)Market value is less than one thousand dollars. See Notes to Financial Statements. 59 SCHEDULES OF PORTFOLIO INVESTMENTS STI CLASSIC FUNDS March 31, 2006 (Amounts in thousands, except Shares) INTERNATIONAL EQUITY INDEX FUND -- CONCLUDED (e)Valued at fair value using methods determined by the Board and represents 0.04% of net assets as of March 31, 2006. (f)This security was purchased with cash collateral held from securities lending. Cl -- Class PLC -- Public Limited Company Ser -- Series The investment concentrations for the International Equity Index Fund as a percentage of net assets, by industry, as of March 31, 2006, were as follows (unaudited): Consumer Discretionary 12.7% Consumer Staples 5.2 Energy 6.8 Financials 29.1 Health Care 4.9 Industrials 10.8 Information Technology 6.3 Materials 7.5 Short-Term Investments 13.0 Telecommunication Services 5.6 Utilities 6.4
See Notes to Financial Statements. 60 SCHEDULES OF PORTFOLIO INVESTMENTS STI CLASSIC FUNDS March 31, 2006 (Amounts in thousands, except Shares) LARGE CAP RELATIVE VALUE FUND
- ------------------------------------------------------- Shares Value($) - ------------------------------------------------------- COMMON STOCKS (98.5%) CONSUMER DISCRETIONARY (9.2%) Advance Auto Parts, Inc. 500,000 20,820 CBS Corp., Cl B 600,000 14,388 Kohl's Corp. * (b) 300,000 15,903 Lowe's Cos., Inc. (b) 275,000 17,721 McDonald's Corp. 40,000 1,374 Meredith Corp. 300,000 16,737 NIKE, Inc., Cl B (b) 150,000 12,765 Target Corp. 175,000 9,102 Viacom, Inc., Cl B * (b) 300,000 11,640 Walt Disney Co. (The) (b) 700,000 19,523 ---------- 139,973 ---------- CONSUMER STAPLES (9.6%) Anheuser-Busch Cos., Inc. (b) 400,000 17,108 Archer Daniels Midland Co. 200,000 6,730 Diageo PLC ADR (b) 400,000 25,372 General Mills, Inc. 400,000 20,272 PepsiCo, Inc. 200,000 11,558 Procter & Gamble Co. (The) 225,000 12,965 Unilever PLC ADR (b) 500,000 20,535 Wal-Mart Stores, Inc. (b) 400,000 18,896 Wm. Wrigley Jr. Co. (b) 200,000 12,800 ---------- 146,236 ---------- ENERGY (10.5%) Anadarko Petroleum Corp. 150,000 15,152 Baker Hughes, Inc. (b) 300,000 20,520 Burlington Resources, Inc. 175,000 16,084 Chevron Corp. (b) 450,000 26,086 ConocoPhillips 300,000 18,945 Exxon Mobil Corp. 370,000 22,518 Royal Dutch Shell PLC ADR, Cl A (b) 400,000 24,904 Transocean, Inc. * (b) 200,000 16,060 ---------- 160,269 ---------- FINANCIALS (24.7%) American Express Co. 35,000 1,839 American International Group, Inc. (b) 375,000 24,784 Ameriprise Financial, Inc. 600,000 27,036 Bank of America Corp. 500,000 22,770 Berkshire Hathaway, Inc., Cl B * (b) 8,500 25,602 Cincinnati Financial Corp. 450,000 18,932 CIT Group, Inc. (b) 400,000 21,408
- ------------------------------------------------------- Shares Value($) - ------------------------------------------------------- FINANCIALS--CONTINUED Citigroup, Inc. 650,000 30,705 Fifth Third Bancorp (b) 450,000 17,712 Genworth Financial, Inc., Cl A (b) 600,000 20,058 Goldman Sachs Group, Inc. (The) (b) 90,000 14,127 Morgan Stanley 400,000 25,128 New York Community Bancorp, Inc. (b) 1,300,000 22,776 Principal Financial Group, Inc. (b) 450,000 21,960 State Street Corp. 250,000 15,108 U.S. Bancorp 500,000 15,250 UBS AG 40,000 4,399 Wachovia Corp. (b) 500,000 28,024 Wells Fargo & Co. 275,000 17,564 ---------- 375,182 ---------- HEALTH CARE (10.8%) Abbott Laboratories 400,000 16,988 Amgen, Inc. * 225,000 16,369 Boston Scientific Corp. * (b) 1,000,000 23,050 Bristol-Myers Squibb Co. (b) 889,682 21,895 Eli Lilly & Co. (b) 350,000 19,355 Johnson & Johnson 350,000 20,727 Pfizer, Inc. 1,200,000 29,904 WellPoint, Inc. * 215,000 16,647 ---------- 164,935 ---------- INDUSTRIALS (10.3%) 3M Co. (b) 300,000 22,707 Cendant Corp. 1,000,000 17,350 Dover Corp. 500,000 24,280 Emerson Electric Co. 150,000 12,545 General Electric Co. 500,000 17,390 Goodrich Corp. 500,000 21,805 Illinois Tool Works, Inc. 125,000 12,039 Ingersoll-Rand Co. Ltd., Cl A 500,000 20,895 Textron, Inc. 75,000 7,004 ---------- 156,015 ---------- INFORMATION TECHNOLOGY (12.4%) Accenture Ltd., Cl A 800,000 24,056 Applied Materials, Inc. (b) 1,000,000 17,510 Automatic Data Processing, Inc. 25,000 1,142
See Notes to Financial Statements. 61 SCHEDULES OF PORTFOLIO INVESTMENTS STI CLASSIC FUNDS March 31, 2006 (Amounts in thousands, except Shares) LARGE CAP RELATIVE VALUE FUND -- CONCLUDED
- ------------------------------------------------------- Shares Value($) - ------------------------------------------------------- INFORMATION TECHNOLOGY--CONTINUED Cisco Systems, Inc. * 600,000 13,002 First Data Corp. 500,000 23,410 Hewlett-Packard Co. 550,000 18,095 Intel Corp. 1,000,000 19,350 International Business Machines Corp. 200,000 16,494 Microsoft Corp. 700,000 19,047 Nokia Corp. ADR (b) 1,100,000 22,792 Texas Instruments, Inc. 400,000 12,988 ---------- 187,886 ---------- MATERIALS (2.8%) E.I. du Pont de Nemours & Co. (b) 400,000 16,884 Praxair, Inc. 300,000 16,545 Sonoco Products Co. 250,000 8,468 ---------- 41,897 ---------- TELECOMMUNICATION SERVICES (4.2%) ALLTEL Corp. (b) 275,000 17,806 BellSouth Corp. 625,000 21,656 Vodafone Group PLC ADR 1,200,000 25,081 ---------- 64,543 ---------- UTILITIES (4.0%) Edison International 550,000 22,649 Entergy Corp. 200,000 13,788 Exelon Corp. (b) 300,000 15,870 SCANA Corp. 200,000 7,848 ---------- 60,155 ---------- Total Common Stocks (Cost $1,227,692) 1,497,091 ---------- MONEY MARKET FUNDS (1.8%) Federated Prime Value Obligations Fund, Cl I 28,076,635 28,077 ---------- Total Money Market Funds (Cost $28,077) 28,077 ----------
- ------------------------------------------------------- Shares Value($) - ------------------------------------------------------- SHORT-TERM INVESTMENT (21.0%) CSFB Enhanced Liquidity Portfolio, 5.006% (c) 319,720,491 319,720 ---------- Total Short-Term Investment (Cost $319,720) 319,720 ---------- Total Investments (Cost $1,575,489) (a) -- 121.3% 1,844,888 Liabilities in excess of other assets -- (21.3)% (324,327) ---------- Net Assets -- 100.0% $1,520,561 ==========
- --------------- * Non-income producing security. (a)Cost for federal income tax purposes is $1,577,825 (amount in thousands). Unrealized appreciation/(depreciation) on a tax basis is as follows (amounts in thousands): Unrealized Appreciation................ $283,940 Unrealized Depreciation................ (16,878) -------- Unrealized Appreciation (Depreciation)....................... $267,062 ========
(b)This security or a partial position of the security was on loan at March 31, 2006. The total value of securities on loan at March 31, 2006 in thousands was $309,029. (c)This security was purchased with cash collateral held from securities lending. ADR -- American Depository Receipt Cl -- Class PLC -- Public Limited Company See Notes to Financial Statements. 62 SCHEDULES OF PORTFOLIO INVESTMENTS STI CLASSIC FUNDS March 31, 2006 (Amounts in thousands, except Shares) LARGE CAP VALUE EQUITY FUND
- ------------------------------------------------------- Shares or Principal Amount($) Value($) - ------------------------------------------------------- COMMON STOCKS (98.6%) CONSUMER DISCRETIONARY (6.2%) Federated Department Stores, Inc. 280,280 20,460 Foot Locker, Inc. 307,300 7,338 New York Times Co. (The), Cl A (b) 267,200 6,763 OfficeMax, Inc. 188,563 5,689 Pulte Homes, Inc. 192,700 7,404 Time Warner, Inc. 401,200 6,736 ---------- 54,390 ---------- CONSUMER STAPLES (7.4%) Alberto-Culver Co. 214,378 9,482 Colgate-Palmolive Co. 328,550 18,760 J.M. Smucker Co. (The) 173,861 6,902 Kimberly-Clark Corp. 158,850 9,182 PepsiCo, Inc. 229,550 13,266 Sysco Corp. (b) 224,400 7,192 ---------- 64,784 ---------- ENERGY (12.6%) Amerada Hess Corp. (b) 81,650 11,627 Arch Coal, Inc. 99,200 7,533 Chevron Corp. 318,000 18,434 ConocoPhillips (b) 311,350 19,662 Exxon Mobil Corp. 383,200 23,322 Marathon Oil Corp. 300,150 22,862 Questar Corp. 100,300 7,026 ---------- 110,466 ---------- FINANCIALS (22.4%) A.G. Edwards, Inc. 169,200 8,436 Astoria Financial Corp. (b) 263,775 8,166 Bank of America Corp. (b) 406,200 18,499 Bank of New York Co., Inc. (The) 426,550 15,373 Bear Stearns & Co., Inc. 124,250 17,234 Citigroup, Inc. 207,629 9,808 Colonial BancGroup, Inc. (The) 303,600 7,590 Compass Bancshares, Inc. 156,603 7,926 Genworth Financial, Inc., Cl A 209,850 7,015 JPMorgan Chase & Co. 235,966 9,826 Lincoln National Corp. (b) 183,000 9,990 Merrill Lynch & Co., Inc. 121,750 9,589 Morgan Stanley 137,550 8,641
- ------------------------------------------------------- Shares or Principal Amount($) Value($) - ------------------------------------------------------- FINANCIALS--CONTINUED Northern Trust Corp. (b) 159,850 8,392 Regions Financial Corp. (b) 219,630 7,724 Torchmark Corp. (b) 125,713 7,178 U.S. Bancorp 307,150 9,368 Wachovia Corp. (b) 170,200 9,540 Washington Mutual, Inc. (b) 171,800 7,322 XL Capital Ltd., Cl A 137,500 8,815 ---------- 196,432 ---------- HEALTH CARE (9.6%) Abbott Laboratories 319,700 13,578 Becton, Dickinson & Co. 114,130 7,028 Cooper Cos., Inc. (The) (b) 143,750 7,767 Health Management Associates, Inc., Cl A 348,400 7,515 PerkinElmer, Inc. 197,146 4,627 Pfizer, Inc. 719,000 17,917 Universal Health Services, Inc., Cl B (b) 148,400 7,537 Wyeth 384,250 18,644 ---------- 84,613 ---------- INDUSTRIALS (20.8%) American Power Conversion Corp. (b) 226,800 5,241 Cooper Industries Ltd., Cl A (b) 91,350 7,938 Emerson Electric Co. 89,902 7,519 Forward Air Corp. 61,177 2,281 General Electric Co. 550,300 19,140 Honeywell International, Inc. 445,550 19,057 Illinois Tool Works, Inc. 196,100 18,886 ITT Industries, Inc. 330,600 18,586 J. B. Hunt Transport Services, Inc. (b) 215,459 4,641 MSC Industrial Direct Co., Inc., Cl A 162,600 8,784 Pall Corp. (b) 239,931 7,483 Parker Hannifin Corp. (b) 107,550 8,670 Pitney Bowes, Inc. 153,198 6,577 R.R. Donnelley & Sons Co. 183,600 6,007 Rockwell Automation, Inc. 194,500 13,986 Ryder System, Inc. 138,700 6,211 United Parcel Service, Inc., Cl B (b) 125,200 9,938
See Notes to Financial Statements. 63 SCHEDULES OF PORTFOLIO INVESTMENTS STI CLASSIC FUNDS March 31, 2006 (Amounts in thousands, except Shares) LARGE CAP VALUE EQUITY FUND -- CONCLUDED
- ------------------------------------------------------- Shares or Principal Amount($) Value($) - ------------------------------------------------------- INDUSTRIALS--CONTINUED UTI Worldwide, Inc. 106,350 3,361 Waste Management, Inc. 250,200 8,832 ---------- 183,138 ---------- INFORMATION TECHNOLOGY (4.4%) Automatic Data Processing, Inc. 209,650 9,577 Diebold, Inc. 152,528 6,269 First Data Corp. 167,300 7,833 Harris Corp. 137,875 6,520 Jack Henry & Associates, Inc. 374,001 8,553 ---------- 38,752 ---------- MATERIALS (6.0%) Alcoa, Inc. 292,150 8,928 E.I. du Pont de Nemours & Co. (b) 176,100 7,433 International Flavors & Fragrances, Inc. 209,213 7,180 MeadWestvaco Corp. (b) 250,650 6,845 Praxair, Inc. 179,150 9,880 Sigma-Aldrich Corp. (b) 115,818 7,620 Valspar Corp. (The) 177,200 4,939 ---------- 52,825 ---------- TELECOMMUNICATION SERVICES (4.3%) ALLTEL Corp. 210,986 13,661 Sprint Nextel Corp. 387,100 10,003 Verizon Communications, Inc. 403,660 13,749 ---------- 37,413 ---------- UTILITIES (4.9%) Cinergy Corp. (b) 205,100 9,314 Dominion Resources, Inc. (b) 142,418 9,831 Entergy Corp. 153,900 10,610 PPL Corp. 453,744 13,340 ---------- 43,095 ---------- Total Common Stocks (Cost $750,024) 865,908 ---------- SHORT-TERM INVESTMENT (14.5%) CSFB Enhanced Liquidity Portfolio, 5.006% (c) 127,527,175 127,527 ---------- Total Short-Term Investment (Cost $127,527) 127,527 ----------
- ------------------------------------------------------- Shares or Principal Amount($) Value($) - ------------------------------------------------------- REPURCHASE AGREEMENT (5.8%) Merrill Lynch & Co., Inc., 4.725%, dated 03/31/06, to be purchased on 04/03/06, repurchase price $50,883,584 (collateralized by U.S. Government Agencies; 5.500% 02/01/35 total market value $51,881,786) 50,864 50,864 ---------- Total Repurchase Agreement (Cost $50,864) 50,864 ---------- Total Investments (Cost $928,415) (a) -- 118.9% 1,044,299 Liabilities in excess of other assets -- (18.9)% (165,650) ---------- Net Assets -- 100.0% $ 878,649 ==========
- --------------- (a)Cost for federal income tax purposes is $929,356 (amount in thousands). Unrealized appreciation/(depreciation) on a tax basis is as follows (amounts in thousands): Unrealized Appreciation................. $121,753 Unrealized Depreciation................. (6,810) -------- Unrealized Appreciation (Depreciation)........................ $114,943 ========
(b)This security or a partial position of the security was on loan at March 31, 2006. The total value of securities on loan at March 31, 2006 in thousands was $123,453. (c)This security was purchased with cash collateral held from securities lending. Cl -- Class See Notes to Financial Statements. 64 SCHEDULES OF PORTFOLIO INVESTMENTS STI CLASSIC FUNDS March 31, 2006 (Amounts in thousands, except Shares) MID-CAP EQUITY FUND
- ------------------------------------------------------- Shares or Principal Amount($) Value($) - ------------------------------------------------------- COMMON STOCKS (97.0%) CONSUMER DISCRETIONARY (13.2%) Abercrombie & Fitch Co., Cl A 64,831 3,780 American Eagle Outfitters, Inc. 91,768 2,740 Black & Decker Corp. (The) 52,562 4,567 Brinker International, Inc. 63,523 2,684 Claire's Stores, Inc. 100,697 3,656 Darden Restaurants, Inc. 68,079 2,793 Dillard's, Inc., Cl A 138,144 3,597 Hilton Hotels Corp. 129,842 3,306 J.C. Penney Co., Inc. (b) 68,930 4,164 Johnson Controls, Inc. 33,606 2,552 Lennar Corp., Cl A (b) 40,355 2,437 Liz Claiborne, Inc. (b) 85,833 3,517 McGraw-Hill Cos., Inc. (The) 45,423 2,617 Men's Wearhouse, Inc. (The) 107,769 3,873 Nordstrom, Inc. 118,918 4,660 Polo Ralph Lauren Corp. 60,942 3,694 Whirlpool Corp. 39,741 3,635 -------- 58,272 -------- CONSUMER STAPLES (3.7%) Archer Daniels Midland Co. 131,177 4,413 Loews Corp. -- Carolina Group (b) 50,107 2,369 Pepsi Bottling Group, Inc. (The) (b) 73,836 2,244 Reynolds American, Inc. (b) 34,908 3,683 Smithfield Foods, Inc. * (b) 121,746 3,572 -------- 16,281 -------- ENERGY (7.7%) Amerada Hess Corp. (b) 33,676 4,795 Cooper Cameron Corp. * (b) 84,887 3,742 Devon Energy Corp. (b) 74,127 4,534 Marathon Oil Corp. 66,206 5,043 Murphy Oil Corp. (b) 69,465 3,461 Noble Energy, Inc. 51,178 2,248 Pride International, Inc. * 84,372 2,631 Tesoro Corp. * 50,048 3,420 Valero Energy Corp. 63,886 3,819 -------- 33,693 --------
- ------------------------------------------------------- Shares or Principal Amount($) Value($) - ------------------------------------------------------- FINANCIALS (16.0%) American Capital Strategies Ltd. (b) 102,356 3,599 American Financial Group, Inc. (b) 69,710 2,901 Arch Capital Group Ltd. * 50,780 2,932 Bear Stearns & Co., Inc. 48,311 6,701 CIT Group, Inc. 110,332 5,905 Comerica, Inc. 54,216 3,143 Conseco, Inc. * (b) 100,899 2,504 E*TRADE Financial Corp. * 209,219 5,645 Genworth Financial, Inc., Cl A 109,149 3,649 IndyMac Bancorp, Inc. (b) 41,522 1,699 KeyCorp (b) 126,802 4,666 Lincoln National Corp. (b) 53,706 2,932 MBIA, Inc. 58,384 3,511 MGIC Investment Corp. 50,470 3,363 Old Republic International Corp. 134,852 2,942 PMI Group, Inc. (The) 77,876 3,576 Radian Group, Inc. (b) 47,143 2,840 St. Paul Travelers Cos., Inc. (The) 64,370 2,690 TD Banknorth, Inc. (b) 78,921 2,316 Zions Bancorp 28,319 2,343 -------- 69,857 -------- HEALTH CARE (12.3%) Allergan, Inc. (b) 41,997 4,557 Applera Corp.-Applied Biosystems Group 77,186 2,095 Barr Pharmaceuticals, Inc. * 19,900 1,253 Becton, Dickinson & Co. 52,472 3,231 Biogen Idec, Inc. * (b) 60,096 2,831 CIGNA Corp. 39,297 5,132 Coventry Health Care, Inc. * 76,158 4,111 Dade Behring Holdings, Inc. 66,187 2,364 Express Scripts, Inc. * 43,340 3,810 Hospira, Inc. * 60,013 2,368 Humana, Inc. * 64,045 3,372 King Pharmaceuticals, Inc. * 174,623 3,012 Laboratory Corp. of America Holdings * (b) 78,112 4,568 McKesson Corp. 58,017 3,024 Mylan Laboratories, Inc. 58,305 1,364
See Notes to Financial Statements. 65 SCHEDULES OF PORTFOLIO INVESTMENTS STI CLASSIC FUNDS March 31, 2006 (Amounts in thousands, except Shares) MID-CAP EQUITY FUND -- CONTINUED
- ------------------------------------------------------- Shares or Principal Amount($) Value($) - ------------------------------------------------------- HEALTH CARE--CONTINUED PDL BioPharma, Inc. * (b) 106,524 3,494 Universal Health Services, Inc., Cl B 71,089 3,611 -------- 54,197 -------- INDUSTRIALS (13.2%) Arrow Electronics, Inc. * 115,988 3,743 Crane Co. 82,877 3,399 CSX Corp. 70,878 4,239 Cummins, Inc. (b) 38,223 4,017 Eaton Corp. 64,269 4,689 Goodrich Corp. 61,442 2,679 Granite Construction, Inc. 77,825 3,789 Harsco Corp. 56,355 4,655 Herman Miller, Inc. 93,444 3,029 L-3 Communications Holdings, Inc. 37,076 3,181 Mettler Toledo International, Inc. * 42,364 2,556 Norfolk Southern Corp. 56,421 3,051 Ryder System, Inc. 84,365 3,778 Sotheby's Holdings, Inc., Cl A * 135,435 3,933 Southwest Airlines Co. 225,446 4,056 Thomas & Betts Corp. * 63,494 3,262 -------- 58,056 -------- INFORMATION TECHNOLOGY (15.0%) Accenture Ltd., Cl A 104,619 3,146 ADTRAN, Inc. 80,246 2,101 Alliance Data Systems Corp. * (b) 79,644 3,725 Amphenol Corp., Cl A 89,393 4,665 Broadcom Corp., Cl A * 88,675 3,827 Citrix Systems, Inc. * (b) 121,655 4,611 Compuware Corp. * 174,640 1,367 Corning, Inc. * (b) 108,360 2,916 Freescale Semiconductor, Inc., Cl B * 120,442 3,345 Global Payments, Inc. (b) 97,811 5,184 Harris Corp. 78,655 3,720 Lam Research Corp. * (b) 92,826 3,992 MEMC Electronic Materials, Inc. * (b) 100,756 3,720 National Semiconductor Corp. 155,332 4,324 NCR Corp. * (b) 108,763 4,545 NVIDIA Corp. * (b) 87,702 5,022
- ------------------------------------------------------- Shares or Principal Amount($) Value($) - ------------------------------------------------------- INFORMATION TECHNOLOGY--CONTINUED SanDisk Corp. * 46,913 2,698 Western Digital Corp. * 168,812 3,280 -------- 66,188 -------- MATERIALS (4.6%) FMC Corp. 34,332 2,128 Freeport-McMoRan Copper & Gold, Inc., Cl B (b) 31,696 1,894 Louisiana-Pacific Corp. (b) 129,693 3,528 Lubrizol Corp. (The) 52,698 2,258 Phelps Dodge Corp. (b) 50,367 4,056 Rohm & Haas Co. 69,166 3,380 Southern Copper Corp. (b) 34,787 2,939 -------- 20,183 -------- REITS (5.1%) Boston Properties, Inc. 13,177 1,229 Brandywine Realty Trust 77,032 2,447 Camden Property Trust 36,531 2,632 CBL & Associates Properties, Inc. 59,613 2,531 General Growth Properties, Inc. (b) 70,554 3,448 New Century Financial Corp. (b) 60,436 2,781 Simon Property Group, Inc. (b) 22,137 1,863 SL Green Realty Corp. 12,347 1,253 Ventas, Inc. 129,975 4,312 -------- 22,496 -------- TELECOMMUNICATION SERVICES (0.5%) Qwest Communications International, Inc. * (b) 354,816 2,413 -------- UTILITIES (5.7%) AES Corp. (The) * 174,410 2,975 Allegheny Energy, Inc. * 72,149 2,442 Alliant Energy Corp (b) 107,280 3,376 American Electric Power Co., Inc. (b) 133,721 4,549 Edison International 120,526 4,964 FirstEnergy Corp. (b) 47,534 2,324 Sempra Energy 100,443 4,667 -------- 25,297 -------- Total Common Stocks (Cost $366,308) 426,933 --------
See Notes to Financial Statements. 66 SCHEDULES OF PORTFOLIO INVESTMENTS STI CLASSIC FUNDS March 31, 2006 (Amounts in thousands, except Shares) MID-CAP EQUITY FUND -- CONCLUDED
- ------------------------------------------------------- Shares or Principal Amount($) Value($) - ------------------------------------------------------- SHORT-TERM INVESTMENT (21.1%) CSFB Enhanced Liquidity Portfolio, 5.006% (c) 92,956,341 92,956 -------- Total Short-Term Investment (Cost $92,956) 92,956 -------- REPURCHASE AGREEMENT (3.2%) BNP Paribas, 4.655%, dated 03/31/06, to be repurchased on 04/03/06, repurchase price $13,951,254 (collateralized by U.S. Government Agencies; 2.875% - 4.600%, 12/15/06 - 04/11/08 total market value $14,225,271) 13,946 13,946 -------- Total Repurchase Agreement (Cost $13,946) 13,946 -------- Total Investments (Cost $473,210) (a) -- 121.3% 533,835 Liabilities in excess of other assets -- (21.3)% (93,868) -------- Net Assets -- 100.0% $439,967 ========
- --------------- * Non-income producing security. (a)Cost for federal income tax purposes is $474,140 (amount in thousands). Unrealized appreciation/ (depreciation) on a tax basis is as follows (amounts in thousands): Unrealized Appreciation.................. $63,092 Unrealized Depreciation.................. (3,396) ------- Unrealized Appreciation (Depreciation)... $59,696 =======
(b)This security or a partial position of the security was on loan at March 31, 2006. The total value of securities on loan at March 31, 2006 in thousands was $90,550. (c)This security was purchased with cash collateral held from securities lending. Cl -- Class REIT -- Real Estate Investment Trust See Notes to Financial Statements. 67 SCHEDULES OF PORTFOLIO INVESTMENTS STI CLASSIC FUNDS March 31, 2006 (Amounts in thousands, except Shares) MID-CAP VALUE EQUITY FUND
- ------------------------------------------------------- Shares Value($) - ------------------------------------------------------- COMMON STOCKS (97.6%) CONSUMER DISCRETIONARY (13.6%) Centex Corp. 21,100 1,308 Coca-Cola Femsa SA ADR 66,373 2,204 Federated Department Stores, Inc. 33,400 2,438 Foot Locker, Inc. (b) 173,000 4,131 Hilton Hotels Corp. 197,600 5,032 Johnson Controls, Inc. 38,800 2,946 KB Home (b) 22,300 1,449 Mattel, Inc. (b) 130,000 2,357 New York Times Co. (The), Cl A (b) 92,600 2,344 OfficeMax, Inc. 124,400 3,753 Pulte Homes, Inc. 52,900 2,032 Regal Entertainment Group, Cl A (b) 127,700 2,402 Standard Pacific Corp. (b) 54,800 1,842 -------- 34,238 -------- CONSUMER STAPLES (6.2%) Alberto-Culver Co. 113,976 5,042 Clorox Co. (The) 25,300 1,514 Corn Products International, Inc. 74,991 2,217 Estee Lauder Cos., Inc. (The), Cl A 48,800 1,815 J.M. Smucker Co. (The) 81,500 3,236 Pepsi Bottling Group, Inc. (The) 57,100 1,735 -------- 15,559 -------- ENERGY (9.0%) Amerada Hess Corp. (b) 34,000 4,841 CARBO Ceramics, Inc. 31,063 1,768 CHC Helicopter Corp., Cl A 74,889 1,906 Chesapeake Energy Corp. (b) 60,800 1,910 Holly Corp. 21,900 1,623 Pogo Producing Co. 38,400 1,930 Questar Corp. 46,300 3,243 Sunoco, Inc. (b) 25,300 1,963 Tidewater, Inc. (b) 22,900 1,265 Western Refining, Inc. 106,112 2,294 -------- 22,743 -------- FINANCIALS (19.4%) Alliancebernstein Holding LP (b) 35,000 2,319 AmSouth Bancorporation (b) 62,500 1,691
- ------------------------------------------------------- Shares Value($) - ------------------------------------------------------- FINANCIALS--CONTINUED Aspen Insurance Holdings Ltd. (b) 110,500 2,725 Astoria Financial Corp. 103,700 3,211 BankUnited Financial Corp., Cl A 91,140 2,464 Bear Stearns & Co., Inc. 26,300 3,648 CIT Group, Inc. 39,500 2,114 Colonial BancGroup, Inc. (The) 94,200 2,355 Comerica, Inc. 36,900 2,139 Commercial Capital Bancorp, Inc. 139,100 1,956 Compass Bancshares, Inc. 43,000 2,176 Fidelity National Financial, Inc. (b) 70,300 2,498 H & R Block, Inc. 60,200 1,303 KeyCorp 48,000 1,766 Lincoln National Corp. (b) 44,100 2,407 Protective Life Corp. (b) 34,500 1,716 Provident Financial Services, Inc. 122,139 2,211 South Financial Group, Inc. (The) (b) 133,200 3,483 St. Joe Co. (The) 24,100 1,514 Torchmark Corp. (b) 32,700 1,867 XL Capital Ltd., Cl A 48,900 3,135 -------- 48,698 -------- HEALTH CARE (5.6%) Cooper Cos., Inc. (The) 57,200 3,091 Health Management Associates, Inc., Cl A (b) 121,500 2,621 PerkinElmer, Inc. 96,900 2,274 Perrigo Co. (b) 146,300 2,386 Universal Health Services, Inc., Cl B 76,200 3,870 -------- 14,242 -------- INDUSTRIALS (17.5%) American Power Conversion Corp. (b) 58,900 1,361 Cooper Industries Ltd., Cl A (b) 47,900 4,163 ITT Industries, Inc. 93,800 5,272 L-3 Communications Holdings, Inc. 28,048 2,406 MSC Industrial Direct Co., Inc., Cl A 42,500 2,296 Pall Corp. (b) 83,600 2,607
See Notes to Financial Statements. 68 SCHEDULES OF PORTFOLIO INVESTMENTS STI CLASSIC FUNDS March 31, 2006 (Amounts in thousands, except Shares) MID-CAP VALUE EQUITY FUND -- CONCLUDED
- ------------------------------------------------------- Shares Value($) - ------------------------------------------------------- INDUSTRIALS--CONTINUED Parker Hannifin Corp. (b) 29,600 2,386 Pentair, Inc. (b) 68,600 2,795 Pitney Bowes, Inc. 79,400 3,409 R.R. Donnelley & Sons Co. 107,752 3,526 Rockwell Automation, Inc. 35,000 2,517 Ryder System, Inc. 84,014 3,762 Textron, Inc. 22,200 2,073 UTI Worldwide, Inc. 39,400 1,245 Walter Industries, Inc. 66,100 4,404 -------- 44,222 -------- INFORMATION TECHNOLOGY (7.1%) Amphenol Corp., Cl A 81,700 4,262 Analog Devices, Inc. 46,800 1,792 Harris Corp. 52,500 2,483 Jack Henry & Associates, Inc. (b) 183,600 4,199 Linear Technology Corp. (b) 52,700 1,849 Reynolds & Reynolds Co. (The), Cl A 63,233 1,796 Tektronix, Inc. (b) 44,600 1,593 -------- 17,974 -------- MATERIALS (8.7%) Ashland, Inc. 35,600 2,530 Ball Corp. (b) 65,700 2,880 Cytec Industries, Inc. 27,107 1,627 Foundation Coal Holdings, Inc. 107,455 4,421 International Flavors & Fragrances, Inc. 65,300 2,241 Nucor Corp. 27,900 2,924 Sigma-Aldrich Corp. (b) 54,100 3,559 Valspar Corp. (The) 67,398 1,878 -------- 22,060 -------- REITS (2.2%) American Financial Realty Trust (b) 167,000 1,946 Developers Diversified Realty Corp. (b) 23,700 1,298 Trustreet Properties, Inc. 157,600 2,393 -------- 5,637 -------- UTILITIES (8.3%) Ameren Corp. (b) 74,600 3,717 Cinergy Corp. (b) 39,500 1,794
- ------------------------------------------------------- Shares Value($) - ------------------------------------------------------- UTILITIES--CONTINUED Constellation Energy Group, Inc. 80,900 4,426 Edison International 94,100 3,875 Pepco Holdings, Inc. (b) 109,100 2,486 PPL Corp. (b) 159,600 4,692 -------- 20,990 -------- Total Common Stocks (Cost $224,894) 246,363 -------- MONEY MARKET FUNDS (4.6%) Federated Prime Value Obligations Fund, Cl I 11,597,140 11,597 -------- Total Money Market Funds (Cost $11,597) 11,597 -------- SHORT-TERM INVESTMENT (25.9%) CSFB Enhanced Liquidity Portfolio, 5.006% (c) 65,280,695 65,281 -------- Total Short-Term Investment (Cost $65,281) 65,281 -------- Total Investments (Cost $301,772) (a) -- 128.1% 323,241 Liabilities in excess of other assets -- (28.1)% (70,906) -------- Net Assets -- 100.0% $252,335 ========
- --------------- (a)Cost for federal income tax purposes is $302,099 (amount in thousands). Unrealized appreciation/ (depreciation) on a tax basis is as follows (amounts in thousands): Unrealized Appreciation.................. $25,189 Unrealized Depreciation.................. (4,047) ------- Unrealized Appreciation (Depreciation)... $21,142 =======
(b)This security or a partial position of the security was on loan at March 31, 2006. The total value of securities on loan at March 31, 2006 in thousands was $63,390. (c)This security was purchased with cash collateral held from securities lending. ADR -- American Depository Receipt Cl -- Class LP -- Limited Partnership REIT -- Real Estate Investment Trust See Notes to Financial Statements. 69 SCHEDULES OF PORTFOLIO INVESTMENTS STI CLASSIC FUNDS March 31, 2006 (Amounts in thousands, except Shares) QUALITY GROWTH STOCK FUND
- ------------------------------------------------------- Shares Value($) - ------------------------------------------------------- COMMON STOCKS (98.2%) CONSUMER DISCRETIONARY (8.9%) Coach, Inc. * 37,000 1,279 Home Depot, Inc. (The) (b) 41,000 1,734 Lowe's Cos., Inc. (b) 45,000 2,901 Staples, Inc. 91,500 2,336 TJX Cos., Inc. (The) 38,000 943 Univision Communications, Inc., Cl A * 20,000 689 Walt Disney Co. (The) (b) 41,000 1,143 -------- 11,025 -------- CONSUMER STAPLES (7.8%) Colgate-Palmolive Co. 36,000 2,056 CVS Corp. 36,000 1,075 PepsiCo, Inc. 47,000 2,716 Procter & Gamble Co. (The) 42,000 2,420 Wal-Mart Stores, Inc. 29,884 1,412 -------- 9,679 -------- ENERGY (8.4%) Anadarko Petroleum Corp. 15,000 1,515 Apache Corp. (b) 37,250 2,440 BJ Services Co. 53,000 1,834 Exxon Mobil Corp. 75,000 4,565 -------- 10,354 -------- FINANCIALS (17.1%) AFLAC, Inc. 11,000 496 American Express Co. 37,180 1,954 American International Group, Inc. 39,000 2,578 Chubb Corp. (The) 26,500 2,529 Golden West Financial Corp. (b) 18,000 1,222 Goldman Sachs Group, Inc. (The) 8,000 1,256 JPMorgan Chase & Co. 58,000 2,415 Merrill Lynch & Co., Inc. 15,000 1,181 Prudential Financial, Inc. (b) 35,000 2,654 SLM Corp. 47,000 2,441 State Street Corp. 40,000 2,417 -------- 21,143 -------- HEALTH CARE (15.9%) Amgen, Inc. * 38,000 2,765 Becton, Dickinson & Co. 37,000 2,278 Coventry Health Care, Inc. * 45,000 2,429 Forest Laboratories, Inc. * 54,000 2,410
- ------------------------------------------------------- Shares Value($) - ------------------------------------------------------- HEALTH CARE--CONTINUED Johnson & Johnson 14,732 872 Medtronic, Inc. 47,063 2,388 St. Jude Medical, Inc. * 41,000 1,681 UnitedHealth Group, Inc. 61,200 3,419 Varian Medical Systems, Inc. * (b) 24,000 1,348 -------- 19,590 -------- INDUSTRIALS (16.3%) Caterpillar, Inc. 35,000 2,513 Danaher Corp. 28,000 1,779 Emerson Electric Co. 19,000 1,589 Fastenal Co. (b) 38,000 1,799 General Dynamics Corp. 20,000 1,280 General Electric Co. 123,844 4,308 Honeywell International, Inc. 56,000 2,395 ITT Industries, Inc. 26,000 1,462 J. B. Hunt Transport Services, Inc. (b) 28,000 603 Rockwell Collins, Inc. 29,000 1,634 Waste Management, Inc. 20,000 706 -------- 20,068 -------- INFORMATION TECHNOLOGY (19.7%) Automatic Data Processing, Inc. 40,000 1,827 CheckFree Corp. * (b) 40,000 2,020 Cognizant Technology Solutions Corp., Cl A * 12,000 714 Dell, Inc. * 27,000 804 Harris Corp. 20,000 946 Hewlett-Packard Co. 61,000 2,007 Intel Corp. 47,086 911 Intersil Corp., Cl A (b) 46,000 1,330 Jabil Circuit, Inc. * 17,000 729 Microsoft Corp. 144,056 3,919 Network Appliance, Inc. * (b) 42,000 1,513 Oracle Corp. * 36,808 504 Paychex, Inc. 66,000 2,750 QUALCOMM, Inc. 31,000 1,569 Texas Instruments, Inc. 83,000 2,695 -------- 24,238 -------- MATERIALS (3.4%) Praxair, Inc. 45,000 2,481 Rohm & Haas Co. 34,000 1,662 -------- 4,143 --------
See Notes to Financial Statements. 70 SCHEDULES OF PORTFOLIO INVESTMENTS STI CLASSIC FUNDS March 31, 2006 (Amounts in thousands, except Shares) QUALITY GROWTH STOCK FUND -- CONCLUDED
- ------------------------------------------------------- Shares Value($) - ------------------------------------------------------- TELECOMMUNICATION SERVICES (0.7%) AT&T, Inc. (b) 31,000 838 -------- Total Common Stocks (Cost $93,397) 121,078 -------- WARRANTS (0.0%) INFORMATION TECHNOLOGY (0.0%) Lucent Technologies, Inc. * 22,693 14 -------- Total Warrants (Cost $0) 14 -------- SHORT-TERM INVESTMENT (16.7%) CSFB Enhanced Liquidity Portfolio, 5.006% (c) 20,697,375 20,697 -------- Total Short-Term Investment (Cost $20,697) 20,697 -------- Total Investments (Cost $114,094) (a) -- 114.9% 141,789 Liabilities in excess of other assets -- (14.9)% (18,428) -------- Net Assets -- 100.0% $123,361 ========
- --------------- * Non-income producing security. (a)Cost for federal income tax purposes is $114,239 (amount in thousands). Unrealized appreciation/ (depreciation) on a tax basis is as follows (amounts in thousands): Unrealized Appreciation.................. $28,131 Unrealized Depreciation.................. (580) ------- Unrealized Appreciation (Depreciation)... $27,551 =======
(b)This security or a partial position of the security was on loan at March 31, 2006. The total value of securities on loan at in March 31, 2006 thousands was $20,114. (c)This security was purchased with cash collateral held from securities lending. See Notes to Financial Statements. 71 SCHEDULES OF PORTFOLIO INVESTMENTS STI CLASSIC FUNDS March 31, 2006 (Amounts in thousands, except Shares) SMALL CAP GROWTH STOCK FUND
- ------------------------------------------------------- Shares or Principal Amount($) Value($) - ------------------------------------------------------- COMMON STOCKS (97.3%) CONSUMER DISCRETIONARY (14.1%) Aaron Rents, Inc. 385,000 10,460 bebe stores, Inc. 285,000 5,250 Carter's, Inc. * 160,000 10,798 Cavco Industries, Inc. * 150,000 7,289 Champion Enterprises, Inc. * (b) 665,000 9,948 Children's Place Retail Stores, Inc. (The) * (b) 160,000 9,264 Coldwater Creek, Inc. * (b) 310,000 8,618 Conn's, Inc. * (b) 210,000 7,174 Craftmade International, Inc. 170,100 3,145 Dover Downs Gaming & Entertainment, Inc. 175,000 3,810 Dress Barn, Inc. (The) * (b) 215,000 10,309 Escala Group, Inc. * (b) 43,672 1,144 Ethan Allen Interiors, Inc. (b) 200,000 8,404 Genesco, Inc. * (b) 255,000 9,917 Gottschalks, Inc. * 220,300 2,018 Jos. A. Bank Clothiers, Inc. * (b) 336,250 16,123 Luby's, Inc. * 445,000 5,558 Orange 21, Inc. * 471,910 2,100 Panera Bread Co., Cl A * (b) 160,000 12,029 PetMed Express, Inc. * (b) 375,311 6,669 Phillips-Van Heusen Corp. 315,000 12,036 Priceline.com, Inc. * (b) 395,000 9,812 RARE Hospitality International, Inc. * (b) 185,284 6,453 Rocky Shoes & Boots, Inc. * (b) 265,000 6,996 Scientific Games Corp. * (b) 80,000 2,810 Sonic Corp. * (b) 159,240 5,594 Speedway Motorsports, Inc. 70,000 2,675 Sportsman's Guide, Inc. (The) * 225,000 5,960 Steiner Leisure Ltd. * (b) 235,000 9,518 Steven Madden Ltd. 155,899 5,534 Stride Rite Corp. (The) 445,000 6,444 Too, Inc. * 385,000 13,225
- ------------------------------------------------------- Shares or Principal Amount($) Value($) - ------------------------------------------------------- CONSUMER DISCRETIONARY--CONTINUED Warnaco Group, Inc. (The) * 290,000 6,960 Yankee Candle Co., Inc. (The) 52,712 1,443 ---------- 245,487 ---------- CONSUMER STAPLES (2.2%) Central European Distribution Corp. * (b) 210,000 8,075 Chattem, Inc. * (b) 265,000 9,976 Corn Products International, Inc. 279,470 8,264 Overhill Farms, Inc. * (d)(e) 1,155,000 3,337 Parlux Fragrances, Inc. * (b) 290,015 9,353 ---------- 39,005 ---------- ENERGY (3.0%) Atwood Oceanics, Inc. * (b) 50,000 5,051 Core Laboratories NV * 140,000 6,657 Helix Energy Solutions Group, Inc. * (b) 205,000 7,770 Hornbeck Offshore Services, Inc. * 95,000 3,427 Oceaneering International, Inc. * 63,000 3,610 Superior Energy Services, Inc. * (b) 313,200 8,390 TETRA Technologies, Inc. * 135,000 6,350 TODCO, Cl A (b) 190,000 7,488 Unit Corp. * 49,800 2,776 ---------- 51,519 ---------- FINANCIALS (7.8%) American Safety Insurance Holdings Ltd. * 125,000 2,089 Arch Capital Group Ltd. * 135,100 7,801 Central Pacific Financial Corp. 125,000 4,590 Corus Bankshares, Inc. (b) 95,000 5,647 Doral Financial Corp. (b) 475,000 5,486 Downey Financial Corp. 65,570 4,413 Encore Capital Group, Inc. * (b) 165,100 2,435 Euronet Worldwide, Inc. * (b) 190,000 7,188 First BanCorp (b) 385,000 4,759
See Notes to Financial Statements. 72 SCHEDULES OF PORTFOLIO INVESTMENTS STI CLASSIC FUNDS March 31, 2006 (Amounts in thousands, except Shares) SMALL CAP GROWTH STOCK FUND -- CONTINUED
- ------------------------------------------------------- Shares or Principal Amount($) Value($) - ------------------------------------------------------- FINANCIALS--CONTINUED First Citizens BancShares, Inc., Cl A 34,736 6,704 FPIC Insurance Group, Inc. * (b) 130,000 4,914 Franklin Bank Corp. * 181,835 3,497 Infinity Property & Casualty Corp. 209,300 8,736 LandAmerica Financial Group, Inc. 40,000 2,714 Nara Bankcorp, Inc. 170,000 2,984 Phoenix Cos., Inc. (The) 385,000 6,276 Piper Jaffray Cos. * 160,600 8,832 RLI Corp. 109,453 6,272 Selective Insurance Group, Inc. (b) 180,000 9,539 South Financial Group, Inc. (The) (b) 175,000 4,576 Susquehanna Bancshares, Inc. 173,185 4,463 Triad Guaranty, Inc. * 96,095 4,507 United Community Banks, Inc. 60,000 1,689 W Holding Co., Inc. 855,000 6,729 Zenith National Insurance Corp. 190,000 9,144 ---------- 135,984 ---------- HEALTH CARE (16.8%) Allion Healthcare, Inc. * 245,000 3,322 Amedisys, Inc. * (b) 220,000 7,645 American Retirement Corp. * (b) 225,632 5,781 AMICAS, Inc. * 1,090,000 5,145 Arena Pharmaceuticals, Inc. * (b) 715,000 12,949 Aspect Medical Systems, Inc. * (b) 429,800 11,794 Bentley Pharmaceuticals, Inc. * (b) 515,604 6,780 Chemed Corp. 135,000 8,011 Cubist Pharmaceuticals, Inc. * (b) 359,000 8,246 Datascope Corp. 110,000 4,352 DJ Orthopedics, Inc. * 180,000 7,157 Drugmax, Inc. * (d) 2,603,000 2,030 Hi-Tech Pharmacal Co., Inc. * 335,000 9,447
- ------------------------------------------------------- Shares or Principal Amount($) Value($) - ------------------------------------------------------- HEALTH CARE--CONTINUED Hologic, Inc. * (b) 195,000 10,793 ICU Medical, Inc. * (b) 95,000 3,438 Illumina, Inc. * (b) 190,000 4,513 IRIS International, Inc. * (b) 195,000 3,048 Kendle International, Inc. * 249,153 8,421 LHC Group, Inc. * 265,600 4,250 LifeCell Corp. * (b) 425,000 9,584 Matria Healthcare, Inc. * (b) 95,000 3,606 Meridian Bioscience, Inc. 320,000 8,634 Molecular Devices Corp. * (b) 250,000 8,290 Natus Medical, Inc. * (b) 510,000 10,455 Palomar Medical Technologies, Inc. * (b) 360,000 12,042 PDL BioPharma, Inc. * (b) 470,000 15,416 Per-Se Technologies, Inc. * (b) 460,000 12,264 Providence Service Corp. (The) * (b) 254,196 8,266 Res-Care, Inc. * 230,000 4,227 Serologicals Corp. * (b) 470,000 11,496 SurModics, Inc. * (b) 340,000 12,022 Third Wave Technologies, Inc. * 840,000 2,629 TriPath Imaging, Inc. * 665,618 4,646 TriZetto Group, Inc. * (b) 370,000 6,508 United Therapeutics Corp. * 165,000 10,936 Ventiv Health, Inc. * (b) 410,000 13,620 ViroPharma, Inc. * (b) 480,000 6,096 West Pharmaceutical Services, Inc. 96,570 3,353 ---------- 291,212 ---------- INDUSTRIALS (17.3%) A.S.V., Inc. * (b) 295,305 9,515 AirTran Holdings, Inc. * (b) 371,000 6,719 Barrett Business Services, Inc. * 247,097 6,672 Brady Corp., Cl A 190,000 7,117 BTU International, Inc. * 268,158 4,406 Builders FirstSource, Inc. * 385,000 8,743 CBIZ, Inc. * 694,348 5,555 Ceradyne, Inc. * (b) 195,000 9,731
See Notes to Financial Statements. 73 SCHEDULES OF PORTFOLIO INVESTMENTS STI CLASSIC FUNDS March 31, 2006 (Amounts in thousands, except Shares) SMALL CAP GROWTH STOCK FUND -- CONTINUED
- ------------------------------------------------------- Shares or Principal Amount($) Value($) - ------------------------------------------------------- INDUSTRIALS--CONTINUED Columbus McKinnon Corp. * (b) 265,000 7,136 Copart, Inc. * 370,000 10,157 Corrections Corp. of America * (b) 236,000 10,666 Dycom Industries, Inc. * (b) 30,062 639 EDO Corp. (b) 255,000 7,867 ElkCorp 250,000 8,438 EMCOR Group, Inc. * (b) 136,950 6,801 Encore Wire Corp. * (b) 115,000 3,896 Esterline Technologies Corp. * 220,000 9,405 Flow International Corp. * (d) 1,370,000 18,042 Gardner Denver, Inc. * 105,000 6,846 General Cable Corp. * (b) 405,000 12,283 Genlyte Group, Inc. (The) * 210,000 14,308 Gevity HR, Inc. 195,000 4,770 Griffon Corp. * 290,000 7,204 Herman Miller, Inc. 250,000 8,103 Hub Group, Inc., Cl A * 28,171 1,284 Insituform Technologies, Inc., Cl A * (b) 288,628 7,678 Labor Ready, Inc. * 275,000 6,586 Marten Transport Ltd. * 222,500 4,025 Mobile Mini, Inc. * (b) 290,000 8,967 Mueller Industries, Inc. 205,000 7,316 NCI Building Systems, Inc. * (b) 170,000 10,161 Pacer International, Inc. (b) 280,000 9,150 Power-One, Inc. * 762,100 5,487 PW Eagle, Inc. (b) 74,164 2,062 Simpson Manufacturing Co., Inc. 156,875 6,793 TAL International Group, Inc. * 75,000 1,808 Toro Co. (The) 190,000 9,073 Ultralife Batteries, Inc. * (b) 360,000 4,626 Universal Truckload Services, Inc. * 155,000 3,883 Wabtec Corp. 325,000 10,595 Woodward Governor Co. 195,000 6,484 ---------- 300,997 ----------
- ------------------------------------------------------- Shares or Principal Amount($) Value($) - ------------------------------------------------------- INFORMATION TECHNOLOGY (31.8%) @Road, Inc. * 1,585,889 8,040 24/7 Real Media, Inc. * 195,253 2,042 Access Integrated Technologies, Inc., Cl A * (b) 379,873 4,881 Actuate Corp. * 1,302,972 5,538 Advanced Energy Industries, Inc. * (b) 275,000 3,886 Aeroflex, Inc. * 897,525 12,323 ANADIGICS, Inc. * (b) 801,088 6,329 Ansoft Corp. * 155,000 6,462 ANSYS, Inc. * 170,000 9,206 Art Technology Group, Inc. * 955,000 3,066 Atmel Corp. * (b) 370,000 1,746 ATMI, Inc. * 130,000 3,926 Avocent Corp. * 190,000 6,031 Black Box Corp. 215,000 10,331 Blackboard, Inc. * 340,000 9,659 Bottomline Technologies (de), Inc. * 775,000 10,641 CalAmp Corp. * 484,544 5,689 Carrier Access Corp. * 181,453 1,092 Checkpoint Systems, Inc. * (b) 280,000 7,526 Cirrus Logic, Inc. * 615,000 5,215 Click Commerce, Inc. * (b) 465,000 11,132 Comtech Group, Inc. * 370,000 3,700 Credence Systems Corp. * (b) 670,000 4,918 Cree, Inc. * (b) 325,000 10,663 Cymer, Inc. * (b) 199,420 9,062 Cypress Semiconductor Corp. * (b) 455,000 7,712 Ditech Communications Corp. * 560,000 5,852 eCollege.com * (b) 260,000 4,898 EFJ, Inc. * 63,965 690 Entrust, Inc. * 1,240,000 5,580 Epicor Software Corp. * (b) 398,100 5,346 FEI Co. * (b) 275,000 5,459 Hutchinson Technology, Inc. * (b) 210,000 6,336 Hyperion Solutions Corp. * 95,000 3,097 InfoCrossing, Inc. * (b) 520,000 6,266
See Notes to Financial Statements. 74 SCHEDULES OF PORTFOLIO INVESTMENTS STI CLASSIC FUNDS March 31, 2006 (Amounts in thousands, except Shares) SMALL CAP GROWTH STOCK FUND -- CONTINUED
- ------------------------------------------------------- Shares or Principal Amount($) Value($) - ------------------------------------------------------- INFORMATION TECHNOLOGY--CONTINUED Integrated Device Technology, Inc. * 470,000 6,984 Ituran Location & Control Ltd. 405,540 6,136 Kopin Corp. * 1,050,374 5,262 Liveperson, Inc. * 650,000 4,706 Magma Design Automation, Inc. * (b) 272,112 2,354 Merge Technologies, Inc. * (b) 138,532 2,212 Metrologic Instruments, Inc. * 361,066 8,351 Micrel, Inc. * (b) 370,000 5,483 MIPS Technologies, Inc. * 487,068 3,634 Moldflow Corp. * 313,900 4,928 Multi-Fineline Electronix, Inc. * (b) 40,000 2,340 Neoware Systems, Inc. * (b) 330,000 9,775 Netlogic Microsystems, Inc. * (b) 253,544 10,449 NICE Systems Ltd. * 245,000 12,485 Nuance Communications, Inc. * 519,201 6,132 O2Micro International Ltd., ADR * 405,000 4,305 Orbotech Ltd. * 225,000 5,542 Orckit Communications Ltd. * 240,000 5,275 Packeteer, Inc. * 350,000 4,060 Park Electrochemical Corp. 240,000 7,080 Performance Technologies, Inc. * 500,000 3,750 Photronics, Inc. * (b) 350,000 6,566 Portalplayer, Inc. * (b) 220,000 4,891 Power Integrations, Inc. * (b) 242,126 6,000 Presstek, Inc. * (b) 746,745 8,886 Quest Software, Inc. * (b) 465,000 7,766 Radiant Systems, Inc. * (b) 632,299 8,549 Radvision Ltd. * 510,000 9,104 Radyne ComStream, Inc. * 539,700 8,619 RealNetworks, Inc. * (b) 420,000 3,465 Rogers Corp. * (b) 136,917 7,459 Secure Computing Corp. * (b) 460,000 5,308
- ------------------------------------------------------- Shares or Principal Amount($) Value($) - ------------------------------------------------------- INFORMATION TECHNOLOGY--CONTINUED Semtech Corp. * (b) 390,000 6,977 SM&A * 400,000 2,600 SonicWALL, Inc. * 480,000 3,403 Standard Microsystems Corp. * 65,000 1,689 Stellent, Inc. 540,000 6,404 Sunair Services Corp. * 1,000,000 5,000 TALX Corp. 220,000 6,266 Technitrol, Inc. 133,499 3,201 Tekelec * (b) 430,000 5,947 Tollgrade Communications, Inc. * 485,000 7,217 Transaction Systems Architects, Inc. * (b) 280,000 8,739 Trimble Navigation Ltd. * (b) 265,000 11,938 TTM Technologies, Inc. * (b) 510,000 7,390 Ultimate Software Group, Inc. (The) * 455,000 11,762 ValueClick, Inc. * (b) 570,000 9,644 VASCO Data Security International, Inc. * (b) 520,000 4,254 webMethods, Inc. * 1,205,000 10,146 Websense, Inc. * (b) 365,000 10,067 WebSideStory, Inc. * 362,606 6,233 Westell Technologies, Inc., Cl A * 843,716 3,434 Xyratex Ltd. * 190,517 6,001 ---------- 550,508 ---------- MATERIALS (4.3%) A. Schulman, Inc. 265,000 6,559 Aleris International, Inc. * (b) 240,000 11,537 AMCOL International Corp. (b) 124,255 3,579 Carpenter Technology Corp. 135,000 12,759 Foundation Coal Holdings, Inc. 238,600 9,816 Gibraltar Industries, Inc. 118,800 3,500 Headwaters, Inc. * (b) 185,000 7,361 PolyOne Corp. * (b) 375,000 3,495
See Notes to Financial Statements. 75 SCHEDULES OF PORTFOLIO INVESTMENTS STI CLASSIC FUNDS March 31, 2006 (Amounts in thousands, except Shares) SMALL CAP GROWTH STOCK FUND -- CONCLUDED
- ------------------------------------------------------- Shares or Principal Amount($) Value($) - ------------------------------------------------------- MATERIALS--CONTINUED Silgan Holdings, Inc. 120,000 4,820 Texas Industries, Inc. (b) 200,000 12,098 ---------- 75,524 ---------- Total Common Stocks (Cost $1,316,614) 1,690,236 ---------- WARRANT (0.0%) HEALTH CARE (0.0%) Drugmax, Inc. * 1,301,500 0 ---------- INFORMATION TECHNOLOGY (0.0%) InfoCrossing, Inc. *(e) 139,109 583 ---------- TELECOMMUNICATION SERVICES (0.0%) Sunair Services Corp. (d) 350,000 0 ---------- Total Warrant (Cost $169) 583 ---------- SHORT-TERM INVESTMENT (27.8%) CSFB Enhanced Liquidity Portfolio, 5.006% (c) 482,460,076 482,460 ---------- Total Short-Term Investment (Cost $482,460) 482,460 ---------- REPURCHASE AGREEMENTS (2.8%) BNP Paribas, 4.655%, dated 03/31/06 to be repurchased 04/03/06, repurchase price $22,325,637 (collateralized by U.S. Government Agencies, 2.875%, due 12/15/06; total market value $22,763,957) 22,317 22,317
- ------------------------------------------------------- Shares or Principal Amount($) Value($) - ------------------------------------------------------- REPURCHASE AGREEMENTS--CONTINUED Lehman Brothers, Inc., 4.755%, dated 03/31/06, to be repurchased 04/03/06, repurchase price $25,643,794 (collateralized by U.S. Government Obligations DN, due 12/01/34; total market value $26,148,390) 25,634 25,634 ---------- Total Repurchase Agreements (Cost $47,951) 47,951 ---------- Total Investments (Cost $1,847,194) (a) -- 127.9% 2,221,230 Liabilities in excess of other assets -- (27.9)% (483,411) ---------- Net Assets -- 100.0% $1,737,819 ==========
- --------------- * Non-income producing security. (a)Cost for federal income tax purposes is $1,850,633 (amount in thousands). Unrealized appreciation/ (depreciation) on a tax basis is as follows (amounts in thousands): Unrealized Appreciation................. $407,324 Unrealized Depreciation................. (37,227) -------- Unrealized Appreciation (Depreciation)........................ $370,097 ========
(b)This security or a partial position of the security was on loan at March 31, 2006. The total value of securities on loan at March 31, 2006 in thousands was $467,161. (c)This security was purchased with cash collateral held from securities lending. (d)Rule 144A, Section 4(2) or other security which is restricted as to resale to institutional investors. The Fund's advisor has deemed this security to be liquid based upon procedures approved by the Board of Trustees. (e)Valued at fair value using methods determined by the Board. As of March 31, 2006, collectively these securities represented 0.23% of net assets. ADR -- American Depository Receipt Cl -- Class DN -- Discount Note See Notes to Financial Statements. 76 SCHEDULES OF PORTFOLIO INVESTMENTS STI CLASSIC FUNDS March 31, 2006 (Amounts in thousands, except Shares) SMALL CAP VALUE EQUITY FUND
- ------------------------------------------------------- Shares or Principal Amount($) Value($) - ------------------------------------------------------- COMMON STOCKS (98.8%) CONSUMER DISCRETIONARY (20.3%) ADESA, Inc. 265,069 7,088 Applebee's International, Inc. 411,100 10,093 Bassett Furniture Industries, Inc. 216,300 4,315 bebe stores, Inc. (b) 561,300 10,339 Benetton Group SpA ADR 206,200 6,134 Borders Group, Inc. 322,700 8,145 BorgWarner, Inc. 96,800 5,812 CKE Restaurants, Inc. (b) 537,200 9,347 Cobra Electronics Corp. * 194,400 2,059 Courier Corp. 79,500 3,525 Group 1 Automotive, Inc. 192,500 9,151 International Speedway Corp. 158,600 8,073 Intrawest Corp. 60,800 2,079 K-Swiss, Inc., Cl A 275,467 8,303 Lithia Motors, Inc. 248,800 8,633 Makita Corp. ADR 341,954 10,450 Media General, Inc., Cl A 126,400 5,893 Meredith Corp. 107,900 6,020 Movado Group, Inc. 457,800 10,566 Natuzzi SpA ADR 427,500 3,121 SCP Pool Corp. 131,100 6,150 Stanley Furniture Co., Inc. 76,900 2,249 United Auto Group, Inc. (b) 136,300 5,861 Winnebago Industries, Inc. (b) 212,400 6,444 World Wrestling Entertainment, Inc. 302,900 5,119 --------- 164,969 --------- CONSUMER STAPLES (3.1%) Church & Dwight Co., Inc. (b) 333,350 12,308 Corn Products International, Inc. 136,800 4,045 Ingles Markets, Inc., Cl A 82,400 1,468 J.M. Smucker Co. (The) 195,243 7,751 --------- 25,572 --------- ENERGY (4.6%) CARBO Ceramics, Inc. (b) 76,100 4,331 CHC Helicopter Corp., Cl A 715,200 18,202 Maritrans, Inc. 121,700 2,973 Tidewater, Inc. (b) 154,500 8,533 Ultrapar Participacoes SA ADR 207,700 3,689 --------- 37,728 ---------
- ------------------------------------------------------- Shares or Principal Amount($) Value($) - ------------------------------------------------------- FINANCIALS (16.6%) American Financial Group, Inc. (b) 180,500 7,511 Bank of Hawaii Corp. 109,100 5,816 BankAtlantic Bancorp, Inc. (b) 411,400 5,920 Banner Corp. 102,600 3,488 Capital Corp. of the West 55,800 2,049 City National Corp. 78,600 6,036 Cohen & Steers, Inc. 341,130 8,358 Desert Community Bank 36,600 1,471 Federal Agricultural Mortgage Corp., Cl C 80,189 2,359 First Republic Bank * 261,300 9,882 Glacier Bancorp, Inc. (b) 206,232 6,404 HCC Insurance Holdings, Inc. (b) 371,650 12,933 Horizon Financial Corp. 230,106 5,882 Hub International Ltd. 547,700 15,346 International Bancshares Corp. 127,400 3,660 Jefferies Group, Inc. 104,200 6,096 National Interstate Corp. 117,379 2,553 Seacoast Banking Corp. of Florida 215,700 6,279 StanCorp Financial Group, Inc. 199,400 10,790 Washington Federal, Inc. 231,404 5,600 West Coast Bancorp 226,953 6,343 --------- 134,776 --------- HEALTH CARE (4.0%) Ansell Ltd. ADR 108,200 3,533 Cooper Cos., Inc. (The) (b) 295,000 15,938 PerkinElmer, Inc. 260,200 6,107 Perrigo Co. (b) 442,400 7,216 --------- 32,794 --------- INDUSTRIALS (31.3%) ABM Industries, Inc. 187,100 3,587 American Ecology Corp. (b) 307,500 6,267 Apogee Enterprises, Inc. 187,500 3,165 Briggs & Stratton Corp. (b) 148,500 5,252 Brink's Co. (The) 227,500 11,548 Deluxe Corp. (b) 242,500 6,346 Donaldson Co., Inc. 178,600 6,035 DRS Technologies, Inc. (b) 37,400 2,052 ElkCorp (b) 161,100 5,437 Forward Air Corp. 280,411 10,457 Freightcar America, Inc. 90,800 5,775
See Notes to Financial Statements. 77 SCHEDULES OF PORTFOLIO INVESTMENTS STI CLASSIC FUNDS March 31, 2006 (Amounts in thousands, except Shares) SMALL CAP VALUE EQUITY FUND -- CONTINUED
- ------------------------------------------------------- Shares or Principal Amount($) Value($) - ------------------------------------------------------- INDUSTRIALS--CONTINUED Gol Linhas Aereas Inteligentes SA ADR 231,492 6,204 Graco, Inc. (b) 569,200 25,860 Granite Construction, Inc. 250,500 12,194 Grupo Aeroportuario del Pacifico SA de CV ADR * 500,000 15,975 Heartland Express, Inc. 380,100 8,282 Lan Airlines SA ADR 149,400 5,855 Lennox International, Inc. (b) 309,189 9,232 LSI Industries, Inc. 508,487 8,665 McGrath Rentcorp 239,600 7,202 Mine Safety Appliances Co. (b) 191,083 8,025 MSC Industrial Direct Co., Inc., Cl A 123,700 6,682 Multi-Color Corp. * 84,800 2,548 Oshkosh Truck Corp. (b) 105,800 6,585 Portec Rail Products, Inc. 151,327 2,377 Quixote Corp. 401,820 9,945 Ryder System, Inc. 177,700 7,957 Simpson Manufacturing Co., Inc. 149,900 6,491 Supreme Industries, Inc., Cl A 81,405 605 Valmont Industries, Inc. 200,700 8,437 Wabtec Corp. 499,400 16,281 Walter Industries, Inc. (b) 193,400 12,884 --------- 254,207 --------- INFORMATION TECHNOLOGY (8.0%) Diebold, Inc. (b) 187,900 7,723 Factset Research Systems, Inc. (b) 245,200 10,875 Harris Corp. 261,956 12,387 Jack Henry & Associates, Inc. (b) 526,400 12,038 Keithley Instruments, Inc. 260,600 4,003 Nam Tai Electronics, Inc. 266,500 6,106 Reynolds & Reynolds Co. (The), Cl A 289,694 8,227 Woodhead Industries, Inc. 201,900 3,352 --------- 64,711 --------- MATERIALS (8.4%) Aber Diamond Corp 9,800 397 Agnico-Eagle Mines Ltd. 433,500 13,200
- ------------------------------------------------------- Shares or Principal Amount($) Value($) - ------------------------------------------------------- MATERIALS--CONTINUED Airgas, Inc. 524,688 20,510 Foundation Coal Holdings, Inc. 233,200 9,594 RPM International, Inc. ADR 418,600 7,510 Scotts Miracle-Gro Co. (The), Cl A 165,500 7,573 Valspar Corp. (The) 349,200 9,732 --------- 68,516 --------- UTILITIES (2.5%) Companhia de Saneamento Basico ADR (b) 570,900 12,566 PNM Resources, Inc. (b) 334,100 8,152 --------- 20,718 --------- Total Common Stocks (Cost $569,122) 803,991 --------- SHORT-TERM INVESTMENT (12.6%) CSFB Enhanced Liquidity Portfolio, 5.006% (c) 102,612,350 102,612 --------- Total Short-Term Investment (Cost $102,612) 102,612 --------- REPURCHASE AGREEMENT (1.0%) Lehman Brothers, Inc., 4.755%, dated 03/31/06, to be repurchased on 04/03/06, repurchase price $7,883,109 (collateralized by U.S. Government Agencies, DN, due 12/31/34; total market value $8,039,279) 7,880 7,880 --------- Total Repurchase Agreement (Cost $7,880) 7,880 --------- Total Investments (Cost $679,614) (a) -- 112.4% 914,483 Liabilities in excess of other assets -- (12.4)% (101,069) --------- Net Assets -- 100.0% $ 813,414 =========
- --------------- * Non-income producing security. See Notes to Financial Statements. 78 SCHEDULES OF PORTFOLIO INVESTMENTS STI CLASSIC FUNDS March 31, 2006 (Amounts in thousands, except Shares) SMALL CAP VALUE EQUITY FUND -- CONCLUDED (a)Cost for federal income tax purposes is $679,704 (amount in thousands). Unrealized appreciation/(depreciation) on a tax basis is as follows (amounts in thousands): Unrealized Appreciation.................. $241,826 Unrealized Depreciation.................. (7,047) -------- Unrealized Appreciation (Depreciation)... $234,779 ========
(b)This security or a partial position of the security was on loan at March 31, 2006. The total value of securities on loan at March 31, 2006 in thousands was $99,514. (c)This security was purchased with cash collateral held from securities lending. ADR -- American Depository Receipt Cl -- Class DN -- Discount Note See Notes to Financial Statements. 79 SCHEDULES OF PORTFOLIO INVESTMENTS STI CLASSIC FUNDS March 31, 2006 (Amounts in thousands, except Shares) STRATEGIC QUANTITATIVE EQUITY FUND
- ------------------------------------------------------- Shares or Principal Amount($) Value($) - ------------------------------------------------------- COMMON STOCKS (99.1%) CONSUMER DISCRETIONARY (10.5%) Bed Bath & Beyond, Inc. * 44,747 1,718 Best Buy Co., Inc. 32,045 1,792 Centex Corp. 27,824 1,725 Circuit City Stores, Inc. 72,240 1,768 Coach, Inc. * 50,255 1,738 Costco Wholesale Corp. 37,915 2,054 D. R. Horton, Inc. 52,463 1,743 Darden Restaurants, Inc. 42,805 1,756 Home Depot, Inc. (The) 41,421 1,752 Lowe's Cos., Inc. 27,277 1,758 News Corp., Cl A 106,173 1,764 NIKE, Inc., Cl B 20,652 1,757 Nordstrom, Inc. 44,262 1,734 Office Depot, Inc. * 47,342 1,763 OfficeMax, Inc. 57,820 1,744 Pulte Homes, Inc. 45,231 1,738 Starbucks Corp. * 46,774 1,761 -------- 30,065 -------- CONSUMER STAPLES (6.4%) Alberto-Culver Co. 46,447 2,054 Anheuser-Busch Cos., Inc. 48,065 2,056 Constellation Brands, Inc., Cl A * 82,230 2,060 General Mills, Inc. 40,620 2,059 Pepsi Bottling Group, Inc. (The) 67,579 2,054 PepsiCo, Inc. 35,377 2,044 Procter & Gamble Co. (The) 35,672 2,055 SUPERVALU, Inc. 66,680 2,055 Wal-Mart Stores, Inc. 43,048 2,034 -------- 18,471 -------- ENERGY (12.4%) Amerada Hess Corp. 31,610 4,502 Apache Corp. 67,781 4,440 Chevron Corp. 77,072 4,468 ConocoPhillips 69,936 4,416 Exxon Mobil Corp. 73,780 4,491 Marathon Oil Corp. 58,557 4,460 Occidental Petroleum Corp. 47,841 4,432 Valero Energy Corp. 74,759 4,469 -------- 35,678 -------- FINANCIALS (23.6%) ACE Ltd. 92,544 4,813 Ambac Financial Group, Inc. 60,803 4,840 Bear Stearns & Co., Inc. 34,892 4,840
- ------------------------------------------------------- Shares or Principal Amount($) Value($) - ------------------------------------------------------- FINANCIALS--CONTINUED Capital One Financial Corp. 59,713 4,808 Chubb Corp. (The) 50,521 4,822 CIT Group, Inc. 90,142 4,824 Countrywide Financial Corp. 135,165 4,961 Goldman Sachs Group, Inc. (The) 30,892 4,849 Lehman Brothers Holdings, Inc. 33,748 4,878 Lincoln National Corp. 89,775 4,901 Merrill Lynch & Co., Inc. 61,735 4,862 MetLife, Inc. * 99,389 4,807 Morgan Stanley 75,932 4,770 SAFECO Corp. 94,926 4,766 -------- 67,741 -------- HEALTH CARE (14.1%) AmerisourceBergen Corp. 77,339 3,734 Becton, Dickinson & Co. 59,711 3,677 C.R. Bard, Inc. 54,232 3,677 Express Scripts, Inc. * 41,988 3,691 King Pharmaceuticals, Inc. * 213,387 3,681 Medtronic, Inc. 71,612 3,634 Merck & Co., Inc. 103,727 3,654 Thermo Electron Corp. * 99,561 3,693 UnitedHealth Group, Inc. 65,655 3,667 Waters Corp. * 85,741 3,700 WellPoint, Inc. * 47,840 3,704 -------- 40,512 -------- INDUSTRIALS (12.8%) Allied Waste Industries, Inc. * 255,153 3,124 Boeing Co. (The) 38,849 3,028 Burlington Northern Santa Fe Corp. 36,657 3,055 CSX Corp. 50,792 3,037 Emerson Electric Co. 36,316 3,037 FedEx Corp. 27,333 3,087 Lockheed Martin Corp. 40,496 3,042 Norfolk Southern Corp. 56,627 3,062 Northrop Grumman Corp. 44,684 3,051 Southwest Airlines Co. 171,057 3,077 Union Pacific Corp. 32,879 3,069 Waste Management, Inc. 87,293 3,081 -------- 36,750 -------- INFORMATION TECHNOLOGY (18.2%) Advanced Micro Devices, Inc. * 111,357 3,693 Apple Computer, Inc. * 59,609 3,739
See Notes to Financial Statements. 80 SCHEDULES OF PORTFOLIO INVESTMENTS STI CLASSIC FUNDS March 31, 2006 (Amounts in thousands, except Shares) STRATEGIC QUANTITATIVE EQUITY FUND -- CONCLUDED
- ------------------------------------------------------- Shares or Principal Amount($) Value($) - ------------------------------------------------------- INFORMATION TECHNOLOGY--CONTINUED Applied Micro Circuits Corp. * 910,090 3,704 Broadcom Corp., Cl A * 86,126 3,717 Citrix Systems, Inc. * 102,059 3,867 Comverse Technology, Inc. * 160,673 3,781 Freescale Semiconductor, Inc., Cl B * 133,175 3,698 Hewlett-Packard Co. 114,844 3,778 Molex, Inc. 113,935 3,783 National Semiconductor Corp. 133,113 3,706 NVIDIA Corp. * 65,086 3,727 Tektronix, Inc. 106,384 3,799 Tellabs, Inc. * 234,512 3,729 Teradyne, Inc. * 238,550 3,700 -------- 52,421 -------- MATERIALS (1.1%) Rohm & Haas Co. 62,725 3,065 -------- Total Common Stocks (Cost $270,801) 284,703 -------- REPURCHASE AGREEMENT (0.7%) Merrill Lynch & Co., Inc., 4.725%, dated 03/31/06, to be repurchased on 04/03/06, repurchase price $2,015,697 (collateralized by U.S. Government Agencies; 5.500%, 02/01/35; total market value $2,059,090) 2,014,904 2,015 -------- Total Repurchase Agreement (Cost $2,015) 2,015 -------- Total Investments (Cost $272,816) (a) -- 99.8% 286,718 Other assets in excess of liabilities -- 0.2% 708 -------- Net Assets -- 100.0% $287,426 ========
- --------------- * Non-income producing security. (a)Cost for federal income tax purposes is $273,882 (amount in thousands). Unrealized appreciation/ (depreciation) on a tax basis is as follows (amounts in thousands): Unrealized Appreciation................. $16,826 Unrealized Depreciation................. (3,990) ------- Unrealized Appreciation (Depreciation)........................ $12,836 =======
Cl -- Class See Notes to Financial Statements. 81 SCHEDULES OF PORTFOLIO INVESTMENTS STI CLASSIC FUNDS March 31, 2006 (Amounts in thousands, except Shares) BALANCED FUND
- ------------------------------------------------------- Shares or Principal Amount($) Value($) - ------------------------------------------------------- COMMON STOCKS (56.1%) CONSUMER DISCRETIONARY (10.0%) Advance Auto Parts, Inc. 12,900 537 Dow Jones & Co., Inc. (b) 22,700 892 Harley-Davidson, Inc. 25,800 1,339 Home Depot, Inc. (The) (b) 32,100 1,358 Lowe's Cos., Inc. 27,700 1,784 Marriott International, Inc., Cl A 10,000 686 New York Times Co. (The), Cl A (b) 22,400 567 NIKE, Inc., Cl B (b) 9,700 825 TJX Cos., Inc. (The) (b) 55,000 1,365 Univision Communications, Inc., Cl A * 21,600 745 Walt Disney Co. (The) 17,700 494 -------- 10,592 -------- CONSUMER STAPLES (2.0%) Colgate-Palmolive Co. 15,700 897 Estee Lauder Cos., Inc. (The), Cl A 12,900 480 Wal-Mart Stores, Inc. 16,500 779 -------- 2,156 -------- ENERGY (3.1%) Anadarko Petroleum Corp. 8,000 808 Exxon Mobil Corp. 41,000 2,495 -------- 3,303 -------- FINANCIALS (9.8%) American Express Co. 25,800 1,355 American International Group, Inc. 14,100 932 Chubb Corp. (The) 12,600 1,203 Goldman Sachs Group, Inc. (The) 7,000 1,099 JPMorgan Chase & Co. 25,000 1,041 Merrill Lynch & Co., Inc. 15,400 1,213 MGIC Investment Corp. 20,200 1,346 SLM Corp. 23,000 1,195 Wells Fargo & Co. 15,600 996 -------- 10,380 -------- HEALTH CARE (9.8%) AmerisourceBergen Corp. (b) 17,200 830 Amgen, Inc. * 8,600 626 Baxter International, Inc. 35,200 1,366 Becton, Dickinson & Co. 30,900 1,902
- ------------------------------------------------------- Shares or Principal Amount($) Value($) - ------------------------------------------------------- HEALTH CARE--CONTINUED Forest Laboratories, Inc. * 21,400 955 Health Management Associates, Inc., Cl A 47,300 1,020 Pfizer, Inc. 60,500 1,508 Quest Diagnostics, Inc. 19,000 975 Schering-Plough Corp. 29,000 551 Universal Health Services, Inc., Cl B 12,700 645 -------- 10,378 -------- INDUSTRIALS (10.5%) Danaher Corp. 23,000 1,462 Emerson Electric Co. 10,800 903 General Electric Co. 30,300 1,054 Honeywell International, Inc. 33,700 1,441 Illinois Tool Works, Inc. 13,800 1,329 Lockheed Martin Corp. 6,700 503 Raytheon Co. 20,000 917 Union Pacific Corp. 6,200 579 United Parcel Service, Inc., Cl B 15,300 1,215 Waste Management, Inc. 48,200 1,701 -------- 11,104 -------- INFORMATION TECHNOLOGY (9.5%) Analog Devices, Inc. 18,100 693 Automatic Data Processing, Inc. 25,000 1,142 CheckFree Corp. * (b) 25,000 1,263 Cisco Systems, Inc. * 35,000 758 Comverse Technology, Inc. * 30,500 718 International Business Machines Corp. 17,000 1,402 Maxim Integrated Products, Inc. 19,500 724 Microsoft Corp. 65,300 1,778 Oracle Corp. * 27,500 376 Paychex, Inc. 29,200 1,216 -------- 10,070 -------- MATERIALS (0.6%) Rohm & Haas Co. 13,700 670 -------- TELECOMMUNICATION SERVICES (0.8%) AT&T, Inc. (b) 32,500 879 -------- Total Common Stocks (Cost $50,432) 59,532 --------
See Notes to Financial Statements. 82 SCHEDULES OF PORTFOLIO INVESTMENTS STI CLASSIC FUNDS March 31, 2006 (Amounts in thousands, except Shares) BALANCED FUND -- CONTINUED
- ------------------------------------------------------- Shares or Principal Amount($) Value($) - ------------------------------------------------------- CORPORATE BONDS (7.1%) AEROSPACE & DEFENSE (0.1%) United Technologies Corp., 4.875%, 05/01/15 125 119 -------- AIRLINES (0.1%) Southwest Airlines Co., 5.125%, 03/01/17 140 130 -------- BANKS (0.2%) Bank of America Corp., 7.400%, 01/15/11 210 227 -------- CONSUMER STAPLES (0.2%) Avon Products, Inc., 5.125%, 01/15/11 225 221 -------- DIVERSIFIED FINANCIAL SERVICES (1.9%) CIT Group, Inc., 5.125%, 09/30/14 130 124 Citigroup, Inc., 5.125%, 05/05/14 60 58 Citigroup, Inc., 5.850%, 12/11/34 60 59 ERAC USA Finance Co., 5.600%, 05/01/15 (d) 165 161 Fund American Cos., Inc., 5.875%, 05/15/13 335 330 Goldman Sachs Group, Inc. (The), 4.750%, 07/15/13 280 265 HSBC Holdings PLC, 7.625%, 05/17/32 105 124 International Lease Finance Corp., Ser Q, 5.250%, 01/10/13 85 83 John Deere Capital Corp., 3.900%, 01/15/08 65 63 JPMorgan Chase & Co., 6.625%, 03/15/12 310 326 Lazard Group LLC, 7.125%, 05/15/15 230 239 Morgan Stanley, 5.300%, 03/01/13 180 176 -------- 2,008 --------
- ------------------------------------------------------- Shares or Principal Amount($) Value($) - ------------------------------------------------------- ELECTRIC (0.5%) Exelon Corp., 4.900%, 06/15/15 195 181 Exelon Corp., 5.625%, 06/15/35 (b) 190 172 Pacific Gas & Electric Co., 6.050%, 03/01/34 195 191 -------- 544 -------- ENTERTAINMENT (0.2%) GTECH Holdings Corp., 4.750%, 10/15/10 270 263 -------- HEALTH CARE (0.1%) Teva Pharmaceutical Finance LLC, 5.550%, 02/01/16 60 58 Teva Pharmaceutical Finance LLC, 6.150%, 02/01/36 40 38 -------- 96 -------- INFORMATION TECHNOLOGY (0.3%) Comcast Corp., 4.950%, 06/15/16 180 164 Comcast Corp., 6.450%, 03/15/37 110 106 -------- 270 -------- INSURANCE (0.0%) Metlife, Inc., 5.700%, 06/15/35 35 33 -------- INVESTMENT COMPANIES (0.1%) Credit Suisse First Boston USA, Inc., 6.500%, 01/15/12 70 73 -------- MEDIA (0.2%) Cox Communications, Inc., 4.625%, 06/01/13 95 87 News America, Inc., 6.200%, 12/15/34 105 98 Time Warner, Inc., 7.625%, 04/15/31 70 76 -------- 261 -------- MINING (0.1%) Alcan, Inc., 5.750%, 06/01/35 70 65 -------- MISCELLANEOUS MANUFACTURER (0.5%) General Electric Co., 5.000%, 02/01/13 495 481 --------
See Notes to Financial Statements. 83 SCHEDULES OF PORTFOLIO INVESTMENTS STI CLASSIC FUNDS March 31, 2006 (Amounts in thousands, except Shares) BALANCED FUND -- CONTINUED
- ------------------------------------------------------- Shares or Principal Amount($) Value($) - ------------------------------------------------------- OIL & GAS (0.2%) Devon Financing Corp. ULC, 7.875%, 09/30/31 130 157 Enterprise Products Operating LP, Ser B, 5.750%, 03/01/35 110 98 -------- 255 -------- PIPELINES (0.2%) CenterPoint Energy Resources Corp., Ser B, 7.875%, 04/01/13 90 100 Kinder Morgan, Inc., 6.400%, 01/05/36 130 127 -------- 227 -------- REITS (0.1%) Simon Property Group LP, 6.375%, 11/15/07 55 56 -------- RETAIL (0.5%) Federated Department Stores, Inc., 6.900%, 04/01/29 55 57 Woolworths Ltd., 5.550%, 11/15/15 (d) 435 424 -------- 481 -------- TELECOMMUNICATIONS (1.6%) AT&T, Inc., 5.100%, 09/15/14 440 417 BellSouth Corp., 5.200%, 09/15/14 330 316 Cisco Systems Inc., 5.500%, 02/22/16 260 256 Telecom Italia SpA, 5.250%, 10/01/15 325 302 Verizon Communications, Inc., 5.850%, 09/15/35 110 99 Vodafone Group PLC, 5.500%, 06/15/11 330 327 -------- 1,717 -------- Total Corporate Bonds (Cost $7,721) 7,527 --------
- ------------------------------------------------------- Shares or Principal Amount($) Value($) - ------------------------------------------------------- FIXED INCOME SECURITIES (1.8%) AUTOMOBILE ABS (0.3%) Daimler Chrysler Auto Trust, Ser 2005-A, Cl A4, 3.740%, 02/08/10 225 219 Honda Auto Receivables Owner Trust, Ser 2006-1, Cl A3, 5.070%, 09/18/09 140 140 -------- 359 -------- COLLATERALIZED MORTGAGE OBLIGATIONS (1.5%) Banc of America Commercial Mortgage, Inc., Ser 2004-4, Cl A3, 4.128%, 07/10/42 195 188 Citigroup/Deutsche Bank Commercial Mortgage Trust, Ser 2005-CD1, Cl A4, 5.225%, 07/15/44 (e) 345 338 Citigroup/Deutsche Bank Commercial Mortgage Trust, Ser 2006-CD2, Cl A4, 5.545%, 01/15/46 (e) 220 217 GE Capital Commercial Mortgage Corp., Ser 2006-C1, Cl A4, 5.5185%, 03/10/44 (e) 205 202 GS Mortgage Securities Corp. II, Ser 2006-GG6, Cl A2, 5.506%, 04/10/38 (e) 290 291 Wachovia Bank Commercial Mortgage Trust, Ser 2006-C23, Cl A4, 5.418%, 01/15/45 (e) 365 360 -------- 1,596 -------- Total Fixed Income Securities (Cost $1,979) 1,955 -------- U.S. TREASURY OBLIGATIONS (29.5%) U.S. TREASURY BONDS (3.6%) 4.500%, 02/15/36 (b) 4,020 3,772 -------- U.S. TREASURY INFLATION PROTECTED NOTES/BONDS (2.0%) 1.625%, 01/15/15 2,210 2,166 --------
See Notes to Financial Statements. 84 SCHEDULES OF PORTFOLIO INVESTMENTS STI CLASSIC FUNDS March 31, 2006 (Amounts in thousands, except Shares) BALANCED FUND -- CONCLUDED
- ------------------------------------------------------- Shares or Principal Amount($) Value($) - ------------------------------------------------------- U.S. TREASURY NOTES (23.9%) 2.250%, 04/30/06 (b) 4,675 4,666 4.625%, 02/29/08 (b) 2,320 2,311 5.625%, 05/15/08 (b) 2,995 3,042 3.375%, 12/15/08 (b) 5,965 5,747 4.250%, 10/15/10 (b) 5,115 4,995 4.500%, 02/28/11 (b) 2,750 2,710 4.250%, 08/15/13 (b) 2,025 1,948 -------- 25,419 -------- Total U.S. Treasury Obligations (Cost $31,830) 31,357 -------- SHORT-TERM INVESTMENTS (29.8%) CSFB Enhanced Liquidity Portfolio (c) 31,634,326 31,634 -------- Total Short-Term Investments (Cost $31,634) 31,634 -------- REPURCHASE AGREEMENT (4.9%) Deutsche Bank AG, 4.455% dated 03/31/06, to be repurchased on 04/03/06, repurchase price $5,186,384 (collateralized by U.S. Treasury Obligations, 2.625%, due 03/15/09; total market value $5,288,413) 5,184 5,184 -------- Total Repurchase Agreement (Cost $5,184) 5,184 -------- Total Investments (Cost $128,780) (a) -- 129.2% 137,189 Liabilities in excess of other assets -- (29.2)% (31,029) -------- Net Assets -- 100.0% $106,160 ========
- --------------- * Non-income producing security. (a)Cost for federal income tax purposes is $129,015 (amount in thousands). Unrealized appreciation/(depreciation) on a tax basis is as follows (amounts in thousands): Unrealized Appreciation................... $ 9,842 Unrealized Depreciation................... (1,668) ------- Unrealized Appreciation (Depreciation).... $ 8,174 =======
(b)This security or a partial position of the security was on loan at March 31, 2006. The total value of securities on loan at March 31, 2006 in thousands was $30,517. (c)This security was purchased with cash collateral held from securities lending. (d)Rule 144A, Section 4(2) or other security which is restricted as to resale to institutional investors. The Fund's advisor has deemed this security to be liquid based upon procedures approved by the Board of Trustees. (e)Variable rate security. Rate presented represents rate in effect at March 31, 2006. Maturity date represents actual maturity date. Cl -- Class LLC -- Limited Liability Company LP -- Limited Partnership PLC -- Public Limited Company REIT -- Real Estate Investment Trust Ser -- Series See Notes to Financial Statements. 85 SCHEDULES OF PORTFOLIO INVESTMENTS STI CLASSIC FUNDS March 31, 2006 (Amounts in thousands, except Shares) LIFE VISION AGGRESSIVE GROWTH FUND
- -------------------------------------------------------- Shares Value($) - -------------------------------------------------------- EQUITY FUNDS (95.1%) STI Classic Aggressive Growth Stock Fund, I Shares (b) 361,929 4,430 STI Classic Capital Appreciation Fund, I Shares (b) 1,187,946 15,229 STI Classic Emerging Growth Stock Fund, I Shares * (b) 49,559 636 STI Classic International Equity Index Fund, I Shares (b) 598,563 9,463 STI Classic Large Cap Relative Value Fund, I Shares (b) 683,092 11,749 STI Classic Large Cap Value Equity Fund, I Shares (b) 358,042 4,959 STI Classic Mid-Cap Equity Fund, I Shares (b) 274,120 3,747 STI Classic Mid-Cap Value Equity Fund, I Shares (b) 142,530 1,873 STI Classic Small Cap Growth Stock Fund, I Shares * (b) 53,510 1,266 STI Classic Small Cap Value Equity Fund, I Shares (b) 45,145 945 STI Classic Strategic Quantitative Equity Fund, I Shares (b) 361,423 4,970 ------- Total Equity Funds (Cost $48,009) 59,267 -------
- -------------------------------------------------------- Shares Value($) - -------------------------------------------------------- MONEY MARKET FUNDS (5.1%) STI Classic Prime Quality Money Market Fund, I Shares (b) 3,171,443 3,171 ------- Total Money Market Funds (Cost $3,171) 3,171 ------- Total Investments (Cost $51,180) (a) -- 100.2% 62,438 Liabilities in excess of other assets -- (0.2)% (152) ------- Net Assets -- 100.0% $62,286 =======
- --------------- * Non-income producing security. (a)Cost for federal income tax purposes is $52,328 (amount in thousands). Unrealized appreciation/ (depreciation) on a tax basis is as follows (amounts in thousands): Unrealized Appreciation.................. $10,112 Unrealized Depreciation.................. (2) ------- Unrealized Appreciation (Depreciation)... $10,110 =======
(b)Affiliate Investment. See Notes to Financial Statements. 86 SCHEDULES OF PORTFOLIO INVESTMENTS STI CLASSIC FUNDS March 31, 2006 (Amounts in thousands, except Shares) LIFE VISION CONSERVATIVE FUND
- ------------------------------------------------------- Shares Value($) - ------------------------------------------------------- EQUITY FUNDS (20.1%) STI Classic Aggressive Growth Stock Fund, I Shares (b) 13,004 159 STI Classic Capital Appreciation Fund, I Shares (b) 28,428 364 STI Classic International Equity Index Fund, I Shares (b) 33,423 527 STI Classic Large Cap Relative Value Fund, I Shares (b) 21,047 362 STI Classic Large Cap Value Equity Fund, I Shares (b) 7,497 104 STI Classic Mid-Cap Equity Fund, I Shares (b) 7,651 105 STI Classic Mid-Cap Value Equity Fund, I Shares (b) 7,961 105 STI Classic Small Cap Growth Stock Fund, I Shares * (b) 4,473 106 STI Classic Small Cap Value Equity Fund, I Shares (b) 5,041 106 STI Classic Strategic Quantitative Equity Fund, I Shares (b) 11,352 156 ------- Total Equity Funds (Cost $1,638) 2,094 ------- FIXED INCOME FUNDS (70.7%) STI Classic Core Bond Fund, I Shares (b) 735,586 7,253 STI Classic High Income Fund, I Shares (b) 14,950 104 ------- Total Fixed Income Funds (Cost $7,587) 7,357 -------
- ------------------------------------------------------- Shares Value($) - ------------------------------------------------------- MONEY MARKET FUNDS (9.0%) STI Classic Prime Quality Money Market Fund, I Shares (b) 935,928 936 ------- Total Money Market Funds (Cost $936) 936 ------- Total Investments (Cost $10,161) (a) -- 99.8% 10,387 Other assets in excess of liabilities -- 0.2% 27 ------- Net Assets -- 100.0% $10,414 =======
- --------------- * Non-income producing security. (a)Cost for federal income tax purposes is $10,168 (amount in thousands). Unrealized appreciation/(depreciation) on a tax basis is as follows (amounts in thousands): Unrealized Appreciation.................... $ 450 Unrealized Depreciation.................... (231) ----- Unrealized Appreciation (Depreciation)..... $ 219 =====
(b)Affiliate Investment. See Notes to Financial Statements. 87 SCHEDULES OF PORTFOLIO INVESTMENTS STI CLASSIC FUNDS March 31, 2006 (Amounts in thousands, except Shares) LIFE VISION GROWTH AND INCOME FUND
- ------------------------------------------------------- Shares Value($) - ------------------------------------------------------- EQUITY FUNDS (70.4%) STI Classic Aggressive Growth Stock Fund, I Shares (b) 539,581 6,604 STI Classic Capital Appreciation Fund, I Shares (b) 1,750,855 22,446 STI Classic Emerging Growth Stock Fund, I Shares * (b) 69,887 897 STI Classic International Equity Index Fund, I Shares (b) 885,144 13,994 STI Classic Large Cap Relative Value Fund, I Shares (b) 1,006,435 17,311 STI Classic Large Cap Value Equity Fund, I Shares (b) 529,334 7,331 STI Classic Mid-Cap Equity Fund, I Shares (b) 403,458 5,515 STI Classic Mid-Cap Value Equity Fund, I Shares (b) 209,718 2,756 STI Classic Small Cap Growth Stock Fund, I Shares * (b) 80,819 1,911 STI Classic Small Cap Value Equity Fund, I Shares (b) 66,453 1,391 STI Classic Strategic Quantitative Equity Fund, I Shares (b) 534,327 7,347 -------- Total Equity Funds (Cost $68,427) 87,503 -------- FIXED INCOME FUNDS (21.9%) STI Classic Core Bond Fund, I Shares (b) 2,639,216 26,023 STI Classic High Income Fund, I Shares (b) 179,049 1,248 -------- Total Fixed Income Funds (Cost $28,047) 27,271 --------
- ------------------------------------------------------- Shares Value($) - ------------------------------------------------------- MONEY MARKET FUNDS (7.9%) STI Classic Prime Quality Money Market Fund, I Shares (b) 9,856,999 9,857 -------- Total Money Market Funds (Cost $9,857) 9,857 -------- Total Investments (Cost $106,331) (a) -- 100.2% 124,631 Liabilities in excess of other assets -- (0.2)% (281) -------- Net Assets -- 100.0% $124,350 ========
- --------------- * Non-income producing security. (a)Cost for federal income tax purposes is $107,554 (amount in thousands). Unrealized appreciation/(depreciation) on a tax basis is as follows (amounts in thousands): Unrealized Appreciation................... $17,891 Unrealized Depreciation................... (814) ------- Unrealized Appreciation (Depreciation).... $17,077 =======
(b)Affiliate Investment. See Notes to Financial Statements. 88 SCHEDULES OF PORTFOLIO INVESTMENTS STI CLASSIC FUNDS March 31, 2006 (Amounts in thousands, except Shares) LIFE VISION MODERATE GROWTH FUND
- ------------------------------------------------------- Shares Value($) - ------------------------------------------------------- EQUITY FUNDS (50.8%) STI Classic Aggressive Growth Stock Fund, I Shares (b) 562,601 6,886 STI Classic Capital Appreciation Fund, I Shares (b) 1,820,412 23,338 STI Classic International Equity Index Fund, I Shares (b) 926,153 14,642 STI Classic Large Cap Relative Value Fund, I Shares (b) 1,050,457 18,068 STI Classic Large Cap Value Equity Fund, I Shares (b) 543,225 7,524 STI Classic Mid-Cap Equity Fund, I Shares (b) 468,839 6,409 STI Classic Mid-Cap Value Equity Fund, I Shares (b) 223,313 2,934 STI Classic Small Cap Growth Stock Fund, I Shares* (b) 86,012 2,034 STI Classic Small Cap Value Equity Fund, I Shares (b) 88,420 1,851 STI Classic Strategic Quantitative Equity Fund, I Shares (b) 557,265 7,662 -------- Total Equity Funds (Cost $70,672) 91,348 -------- FIXED INCOME FUNDS (42.3%) STI Classic Core Bond Fund, I Shares (b) 7,531,481 74,261 STI Classic High Income Fund, I Shares (b) 261,184 1,820 -------- Total Fixed Income Funds (Cost $78,309) 76,081 --------
- ------------------------------------------------------- Shares Value($) - ------------------------------------------------------- MONEY MARKET FUNDS (8.2%) STI Classic Prime Quality Money Market Fund, I Shares (b) 14,748,127 14,748 -------- Total Money Market Funds (Cost $14,748) 14,748 -------- Total Investments (Cost $163,729) (a) -- 101.3% 182,177 Liabilities in excess of other assets -- (1.3)% (2,308) -------- Net Assets -- 100.0% $179,869 ========
- --------------- * Non-income producing security. (a)Cost for federal income tax purposes is $166,216 (amount in thousands). Unrealized appreciation/(depreciation) on a tax basis is as follows (amounts in thousands): Unrealized Appreciation.................. $18,244 Unrealized Depreciation.................. (2,283) ------- Unrealized Appreciation (Depreciation)... $15,961 =======
(b)Affiliate Investment. See Notes to Financial Statements. 89 SCHEDULES OF PORTFOLIO INVESTMENTS STI CLASSIC FUNDS March 31, 2006 (Amounts in thousands, except Shares) LIFE VISION TARGET DATE 2015 FUND
- -------------------------------------------------------- Shares Value($) - -------------------------------------------------------- EQUITY FUNDS (64.4%) STI Classic Aggressive Growth Stock Fund, I Shares (b) 1,090 13 STI Classic Capital Appreciation Fund, I Shares (b) 3,538 45 STI Classic Emerging Growth Stock Fund, I Shares* (b) 141 2 STI Classic International Equity Index Fund, I Shares (b) 1,799 28 STI Classic Large Cap Relative Value Fund, I Shares (b) 2,033 35 STI Classic Large Cap Value Equity Fund, I Shares (b) 1,069 15 STI Classic Mid-Cap Equity Fund, I Shares (b) 812 11 STI Classic Mid-Cap Value Equity Fund, I Shares (b) 423 6 STI Classic Small Cap Growth Stock Fund, I Shares* (b) 164 4 STI Classic Strategic Quantitative Equity Fund, I Shares (b) 1,080 15 ---- Total Equity Funds (Cost $163) 174 ---- FIXED INCOME FUNDS (22.2%) STI Classic Core Bond Fund, I Shares (b) 5,839 57 STI Classic High Income Fund, I Shares (b) 361 3 ---- Total Fixed Income Funds (Cost $61) 60 ----
- -------------------------------------------------------- Shares Value($) - -------------------------------------------------------- MONEY MARKET FUNDS (5.6%) STI Classic Prime Quality Money Market Fund, I Shares (b) 15,279 15 ---- Total Money Market Funds (Cost $15) 15 ---- EXCHANGE TRADED FUNDS (1.1%) iShares Russell 2000 Value Index Fund 37 3 ---- Total Exchange Traded Funds (Cost $2) 3 ---- Total Investments (Cost $241) (a) -- 93.3% 252 Other assets in excess of liabilities -- 6.7% 18 ---- Net Assets -- 100.0% $270 ====
- --------------- * Non-Income producing security. (a)Cost for federal income tax and financial reporting purposes are the same. (b)Affiliate Investment. See Notes to Financial Statements. 90 SCHEDULES OF PORTFOLIO INVESTMENTS STI CLASSIC FUNDS March 31, 2006 (Amounts in thousands, except Shares) LIFE VISION TARGET DATE 2025 FUND
- -------------------------------------------------------- Shares Value($) - -------------------------------------------------------- EQUITY FUNDS (87.1%) STI Classic Aggressive Growth Stock Fund, I Shares (b) 5,941 73 STI Classic Capital Appreciation Fund, I Shares (b) 19,429 249 STI Classic Emerging Growth Stock Fund, I Shares * (b) 777 10 STI Classic International Equity Index Fund, I Shares (b) 9,923 157 STI Classic Large Cap Relative Value Fund, I Shares (b) 11,333 195 STI Classic Large Cap Value Equity Fund, I Shares (b) 6,262 87 STI Classic Mid-Cap Equity Fund, I Shares (b) 4,544 62 STI Classic Mid-Cap Value Equity Fund, I Shares (b) 2,319 30 STI Classic Small Cap Growth Stock Fund, I Shares * (b) 885 21 STI Classic Strategic Quantitative Equity Fund, I Shares (b) 6,007 83 ------ Total Equity Funds (Cost $949) 967 ------ FIXED INCOME FUNDS (3.9%) STI Classic Core Bond Fund, I Shares (b) 3,289 32 STI Classic High Income Fund, I Shares (b) 1,555 11 ------ Total Fixed Income Funds (Cost $43) 43 ------
- -------------------------------------------------------- Shares Value($) - -------------------------------------------------------- MONEY MARKET FUNDS (5.9%) STI Classic Prime Quality Money Market Fund, I Shares (b) 65,993 66 ------ Total Money Market Funds (Cost $66) 66 ------ EXCHANGE TRADED FUNDS (1.4%) iShares Russell 2000 Value Index Fund 208 15 ------ Total Exchange Traded Funds (Cost $15) 15 ------ Total Investments (Cost $1,073) (a) -- 98.3% 1,091 Other assets in excess of liabilities -- 1.7% 19 ------ Net Assets -- 100.0% $1,110 ======
- --------------- * Non-income producing security. (a)Cost for federal income tax and financial reporting purposes are the same. (b)Affiliate Investment. See Notes to Financial Statements. 91 SCHEDULES OF PORTFOLIO INVESTMENTS STI CLASSIC FUNDS March 31, 2006 (Amounts in thousands, except Shares) LIFE VISION TARGET DATE 2035 FUND
- -------------------------------------------------------- Shares Value($) - -------------------------------------------------------- EQUITY FUNDS (90.3%) STI Classic Aggressive Growth Stock Fund, I Shares (b) 3,298 40 STI Classic Capital Appreciation Fund, I Shares (b) 10,834 140 STI Classic Emerging Growth Stock Fund, I Shares * (b) 458 6 STI Classic International Equity Index Fund, I Shares (b) 5,518 87 STI Classic Large Cap Relative Value Fund, I Shares (b) 6,236 107 STI Classic Large Cap Value Equity Fund, I Shares (b) 3,280 45 STI Classic Mid-Cap Equity Fund, I Shares (b) 2,503 34 STI Classic Mid-Cap Value Equity Fund, I Shares (b) 1,308 17 STI Classic Small Cap Growth Stock Fund, I Shares * (b) 492 12 STI Classic Strategic Quantitative Equity Fund, I Shares (b) 3,291 45 ---- Total Equity Funds (Cost $517) 533 ---- FIXED INCOME FUNDS (1.0%) STI Classic Core Bond Fund, I Shares (b) 570 6 ---- Total Fixed Income Funds (Cost $6) 6 ----
- -------------------------------------------------------- Shares Value($) - -------------------------------------------------------- MONEY MARKET FUNDS (4.1%) STI Classic Prime Quality Money Market Fund, I Shares (b) 23,845 24 ---- Total Money Market Funds (Cost $24) 24 ---- EXCHANGE TRADED FUNDS (1.5%) iShares Russell 2000 Value Index Fund 117 9 ---- Total Exchange Traded Funds (Cost $8) 9 ---- Total Investments (Cost $555) (a) -- 96.9% 572 Other assets in excess of liabilities -- 3.1% 18 ---- Net Assets -- 100.0% $590 ====
- --------------- * Non-income producing security. (a)Cost for federal income tax and financial reporting purposes are the same. (b)Affiliate Investment. See Notes to Financial Statements. 92 STATEMENTS OF ASSETS AND LIABILITIES STI CLASSIC FUNDS March 31, 2006 (Amounts in thousands)
Aggressive Capital Emerging International Large Cap Growth Stock Appreciation Growth Stock International Equity Relative Value Fund Fund Fund Equity Fund Index Fund Fund ------------ ------------ ------------ ------------- ------------- -------------- Assets: Investments, at Cost.............. $238,113 $1,630,851 $38,338 $ 832,447 $616,067 $1,575,489 ======== ========== ======= ========== ======== ========== Investments, at Value*............ $256,183 $1,758,270 $48,432 $1,034,221 $853,848 $1,844,888 Repurchase Agreements, at Cost.... 12,613 38,654 743 -- -- -- -------- ---------- ------- ---------- -------- ---------- Total Investments................. 268,796 1,796,924 49,175 1,034,221 853,848 1,844,888 Cash.............................. -- -- -- -- -- 3 Foreign Currency, at Value (Cost $6,980 and $3,356, respectively)................... -- -- -- 6,997 3,372 -- Interest and Dividends Receivable...................... 44 914 7 4,915 2,703 2,324 Receivable for Investment Securities Sold................. 237 28,686 -- 15,452 -- 7,040 Receivable for Capital Shares Issued.......................... 841 1,053 292 808 1,416 3,951 Reclaims Receivable............... -- -- -- 300 137 -- Prepaid Expenses and Other Assets.......................... 5 9 -- 15 3 7 -------- ---------- ------- ---------- -------- ---------- Total Assets...................... 269,923 1,827,586 49,474 1,062,708 861,479 1,858,213 -------- ---------- ------- ---------- -------- ---------- Liabilities: Payable to Custodian.............. -- 17,174 -- 522 430 -- Payable for Investment Securities Purchased....................... 9,551 11,119 709 11,369 -- 12,665 Payable for Capital Shares Redeemed........................ 154 2,644 13 479 4,580 3,935 Payable upon Return of Securities Loaned.......................... -- 342,342 -- 101,979 67,285 319,720 Investment Advisory Fees Payable......................... 223 1,141 42 866 317 1,033 Administration Fees Payable....... 5 26 -- -- -- 21 Compliance Services Fees Payable......................... -- 2 -- 1 1 2 Distribution and Service Fees Payable......................... 4 72 -- 10 7 77 Custodian Fees Payable............ 5 36 3 155 91 29 Accrued Expenses.................. 15 178 4 93 103 170 -------- ---------- ------- ---------- -------- ---------- Total Liabilities................. 9,957 374,734 771 115,474 72,814 337,652 -------- ---------- ------- ---------- -------- ---------- Total Net Assets.................. $259,966 $1,452,852 $48,703 $ 947,234 $788,665 $1,520,561 ======== ========== ======= ========== ======== ========== Net Assets: Capital........................... $238,164 $1,232,423 $38,484 $ 770,816 $620,842 $1,181,551 Accumulated Net Investment Income (Loss).......................... (11) 120 (15) 1,088 (1,892) 858 Accumulated Net Realized Gains (Losses) on Investments and Foreign Currency Transactions... (8,870) 54,236 (603) (26,448) (68,077) 68,753 Net Unrealized Appreciation on Investments and Foreign Currency Transactions.................... 30,683 166,073 10,837 201,778 237,792 269,399 -------- ---------- ------- ---------- -------- ---------- Total Net Assets.................. $259,966 $1,452,852 $48,703 $ 947,234 $788,665 $1,520,561 ======== ========== ======= ========== ======== ========== NET ASSETS: I Shares.......................... $254,412 $1,296,236 $48,369 $ 926,845 $774,008 $1,396,362 A Shares.......................... $ 331 $ 104,733 $ 227 $ 11,805 $ 8,666 $ 45,851 C Shares.......................... $ 5,223 $ 51,883 $ 107 $ 8,584 $ 5,991 $ 78,348 SHARES OUTSTANDING: I Shares.......................... 20,780 101,074 3,769 63,987 48,971 81,167 A Shares.......................... 27 8,584 17 824 553 2,642 C Shares.......................... 435 4,527 9 632 392 4,609 NET ASSET VALUE AND REDEMPTION PRICE PER SHARE: I Shares.......................... $ 12.24 $ 12.83 $ 12.83 $ 14.49 $ 15.81 $ 17.20 A Shares.......................... $ 12.16 $ 12.20 $ 12.74 $ 14.34 $ 15.66 $ 17.36 C Shares**........................ $ 12.00 $ 11.46 $ 12.59 $ 13.58 $ 15.29 $ 17.00 OFFERING PRICE PER SHARE: (100%/(100%-maximum sales charge) of net asset value adjusted to the nearest cent) I Shares.......................... $ 12.24 $ 12.83 $ 12.83 $ 14.49 $ 15.81 $ 17.20 A Shares.......................... $ 12.90 $ 12.94 $ 13.52 $ 15.21 $ 16.62 $ 18.42 C Shares.......................... $ 12.00 $ 11.46 $ 12.59 $ 13.58 $ 15.29 $ 17.00 Maximum Sales Charge -- A Shares.... 5.75% 5.75% 5.75% 5.75% 5.75% 5.75%
* The Capital Appreciation Fund, International Equity Fund, International Equity Index Fund and Large Cap Relative Value Fund include securities on loan of $332,407, $97,223, $64,328 and $309,029, respectively. ** Redemption Price Per Share Varies by Length of Time Shares are Held. Amounts designated as "--" are $0 or have been rounded to $0. See Notes to Financial Statements. 93 STATEMENTS OF ASSETS AND LIABILITIES STI CLASSIC FUNDS March 31, 2006 (Amounts in thousands)
Large Cap Mid-Cap Mid-Cap Quality Small Cap Small Cap Value Equity Equity Value Equity Growth Stock Growth Stock Value Equity Fund Fund Fund Fund Fund Fund ------------ -------- ------------ ------------ ------------ ------------ Assets: Investments, at Cost...................... $ 928,415 $473,210 $301,772 $114,094 $1,847,194 $679,614 ========== ======== ======== ======== ========== ======== Investments, at Value*.................... $ 993,435 $519,889 $323,241 $141,789 $2,173,279 $906,603 Repurchase Agreements, at Cost............ 50,864 13,946 -- -- 47,951 7,880 ---------- -------- -------- -------- ---------- -------- Total Investments......................... 1,044,299 533,835 323,241 141,789 2,221,230 914,483 Cash...................................... -- 1 -- 1,359 -- 1,362 Interest and Dividends Receivable......... 1,054 538 355 102 613 1,350 Receivable for Investment Securities Sold.................................... 9,442 23,577 44 1,407 20,186 1,307 Receivable for Capital Shares Issued...... 819 3,666 558 60 3,451 1,156 Prepaid Expenses and Other Assets......... 5 12 9 10 7 4 ---------- -------- -------- -------- ---------- -------- Total Assets.............................. 1,055,619 561,629 324,207 144,727 2,245,487 919,662 ---------- -------- -------- -------- ---------- -------- Liabilities: Payable to Custodian...................... -- 3,110 -- -- 3,780 -- Payable for Investment Securities Purchased............................... 44,262 24,994 6,243 -- 13,405 1,777 Payable for Capital Shares Redeemed....... 4,434 190 102 517 6,240 971 Payable upon Return of Securities Loaned.................................. 127,527 92,956 65,281 20,697 482,460 102,612 Investment Advisory Fees Payable.......... 587 360 208 93 1,544 765 Administration Fees Payable............... -- -- -- -- -- 12 Compliance Services Fees Payable.......... 1 1 -- -- 2 1 Distribution and Service Fees Payable..... 55 15 6 42 45 11 Custodian Fees Payable.................... 26 18 9 7 35 22 Accrued Expenses.......................... 78 18 23 10 157 77 ---------- -------- -------- -------- ---------- -------- Total Liabilities......................... 176,970 121,662 71,872 21,366 507,668 106,248 ---------- -------- -------- -------- ---------- -------- Total Net Assets.......................... $ 878,649 $439,967 $252,335 $123,361 $1,737,819 $813,414 ========== ======== ======== ======== ========== ======== Net Assets: Capital................................... $ 793,844 $375,431 $214,854 $290,255 $1,300,527 $487,385 Accumulated Net Investment Income......... 9 144 54 -- -- 273 Accumulated Net Realized Gains (Losses) on Investments............................. (31,088) 3,767 15,958 (194,589) 63,256 90,887 Net Unrealized Appreciation on Investments............................. 115,884 60,625 21,469 27,695 374,036 234,869 ---------- -------- -------- -------- ---------- -------- Total Net Assets.......................... $ 878,649 $439,967 $252,335 $123,361 $1,737,819 $813,414 ========== ======== ======== ======== ========== ======== NET ASSETS: I Shares.................................. $ 766,547 $410,459 $243,534 $ 74,481 $1,641,681 $762,709 A Shares.................................. $ 67,845 $ 16,009 $ 2,435 $ 468 $ 59,896 $ 5,317 C Shares.................................. $ 44,257 $ 13,499 $ 6,366 $ 48,412 $ 36,242 $ 45,388 SHARES OUTSTANDING: I Shares.................................. 55,331 30,021 18,531 2,884 69,410 36,443 A Shares.................................. 4,911 1,220 186 18 2,602 256 C Shares.................................. 3,235 1,111 487 2,008 1,684 2,226 NET ASSET VALUE AND REDEMPTION PRICE PER SHARE: I Shares.................................. $ 13.85 $ 13.67 $ 13.14 $ 25.83 $ 23.65 $ 20.93 A Shares.................................. $ 13.82 $ 13.12 $ 13.10 $ 25.67 $ 23.02 $ 20.79 C Shares**................................ $ 13.68 $ 12.15 $ 13.06 $ 24.11 $ 21.53 $ 20.39 OFFERING PRICE PER SHARE: (100%/(100%-maximum sales charge) of net asset value adjusted to the nearest cent) I Shares.................................. $ 13.85 $ 13.67 $ 13.14 $ 25.83 $ 23.65 $ 20.93 A Shares.................................. $ 14.66 $ 13.92 $ 13.90 $ 27.24 $ 24.41 $ 22.06 C Shares.................................. $ 13.68 $ 12.15 $ 13.06 $ 24.11 $ 21.52 $ 20.39 Maximum Sales Charge -- A Shares............ 5.75% 5.75% 5.75% 5.75% 5.75% 5.75%
* Includes securities on loan of $123,453, $90,550, $63,390, $20,114, $467,161 and $99,514, respectively. ** Redemption Price Per Share Varies by Length of Time Shares are Held. Amounts designated as "--" are $0 or have been rounded to $0. See Notes to Financial Statements. 94 STATEMENTS OF ASSETS AND LIABILITIES STI CLASSIC FUNDS March 31, 2006 (Amounts in thousands)
Strategic Life Vision Life Vision Life Vision Life Vision Quantitative Balanced Aggressive Conservative Growth and Moderate Equity Fund Fund Growth Fund Fund Income Fund Growth Fund ------------ -------- ----------- ------------ ----------- ----------- Assets: Investments, at Cost......................... $272,816 $128,780 $51,180 $10,161 $106,331 $163,729 ======== ======== ======= ======= ======== ======== Investments, at Value*....................... $284,703 $132,005 $62,438 $10,387 $124,631 $182,177 Repurchase Agreements, at Cost............... 2,015 5,184 -- -- -- -- -------- -------- ------- ------- -------- -------- Total Investments............................ 286,718 137,189 62,438 10,387 124,631 182,177 Cash......................................... 1 4,337 -- -- -- -- Interest and Dividends Receivable............ 152 506 11 34 148 360 Receivable for Investment Securities Sold.... 64,035 1,579 -- -- -- -- Receivable for Capital Shares Issued......... 1,516 141 66 -- 88 72 Receivable from Investment Adviser........... -- -- -- 2 -- -- Prepaid Expenses and Other Assets............ 1 9 -- -- 1 1 -------- -------- ------- ------- -------- -------- Total Assets................................. 352,423 143,761 62,515 10,423 124,868 182,610 -------- -------- ------- ------- -------- -------- Liabilities: Payable to Custodian......................... -- 569 -- -- -- -- Payable for Investment Securities Purchased.................................. 64,663 4,955 -- -- -- -- Payable for Capital Shares Redeemed.......... 62 318 210 -- 478 2,689 Payable upon Return of Securities Loaned..... -- 31,634 -- -- -- -- Investment Advisory Fees Payable............. 202 79 5 -- 11 15 Administration Fees Payable.................. 6 -- 1 -- 1 1 Distribution and Service Fees Payable........ 2 28 5 4 15 12 Custodian Fees Payable....................... 27 12 1 2 2 4 Accrued Expenses............................. 35 6 7 3 11 20 -------- -------- ------- ------- -------- -------- Total Liabilities............................ 64,997 37,601 229 9 518 2,741 -------- -------- ------- ------- -------- -------- Total Net Assets............................. $287,426 $106,160 $62,286 $10,414 $124,350 $179,869 ======== ======== ======= ======= ======== ======== Net Assets: Capital...................................... $267,087 $ 91,433 $51,057 $10,094 $104,624 $160,958 Accumulated Net Investment Income............ 14 189 1 11 40 116 Accumulated Net Realized Gains (Losses) on Investments................................ 6,423 6,129 (30) 83 1,386 347 Net Unrealized Appreciation on Investments... 13,902 8,409 11,258 226 18,300 18,448 -------- -------- ------- ------- -------- -------- Total Net Assets............................. $287,426 $106,160 $62,286 $10,414 $124,350 $179,869 ======== ======== ======= ======= ======== ======== NET ASSETS: I Shares..................................... $284,727 $ 69,616 $52,765 $ 3,066 $ 97,964 $158,301 A Shares..................................... $ 1,181 $ 5,811 $ 2,619 $ 1,324 $ 5,737 $ 5,821 C Shares..................................... $ 1,518 $ 30,733 $ 1,146 $ 835 $ 2,820 $ 1,674 B Shares..................................... N/A N/A $ 5,756 $ 5,189 $ 17,829 $ 14,073 SHARES OUTSTANDING: I Shares..................................... 20,702 5,861 4,281 274 7,884 14,594 A Shares..................................... 87 487 213 118 462 537 C Shares..................................... 114 2,608 93 75 228 155 B Shares..................................... N/A N/A 472 463 1,436 1,301 NET ASSET VALUE AND REDEMPTION PRICE PER SHARE: I Shares..................................... $ 13.75 $ 11.88 $ 12.32 $ 11.21 $ 12.43 $ 10.85 A Shares..................................... $ 13.65 $ 11.94 $ 12.29 $ 11.21 $ 12.41 $ 10.84 C Shares**................................... $ 13.37 $ 11.78 $ 12.33 $ 11.20 $ 12.39 $ 10.82 B Shares**................................... N/A N/A $ 12.19 $ 11.22 $ 12.41 $ 10.82 OFFERING PRICE PER SHARE: (100%/(100%-maximum sales charge) of net asset value adjusted to the nearest cent) I Shares..................................... $ 13.75 $ 11.88 $ 12.32 $ 11.21 $ 12.43 $ 10.85 A Shares..................................... $ 14.48 $ 12.67 $ 13.04 $ 11.77 $ 13.17 $ 11.50 C Shares..................................... $ 13.37 $ 11.78 $ 12.33 $ 11.20 $ 12.39 $ 10.82 B Shares..................................... N/A N/A $ 12.19 $ 11.22 $ 12.41 $ 10.82 Maximum Sales Charge -- A Shares............... 5.75% 5.75% 5.75% 4.75% 5.75% 5.75%
* The Balanced Fund includes securities on loan of $30,517. ** Redemption Price Per Share Varies by Length of Time Shares are Held. Amounts designated as "--" are $0 or have been rounded to $0. See Notes to Financial Statements. 95 STATEMENTS OF ASSETS AND LIABILITIES STI CLASSIC FUNDS March 31, 2006 (Amounts in thousands)
Life Vision Life Vision Life Vision Target Date Target Date Target Date 2015 Fund 2025 Fund 2035 Fund ----------- ----------- ----------- Assets: Investments, at Cost...................................... $ 241 $1,073 $ 555 ====== ====== ====== Investments, at Value..................................... $ 252 $1,091 $ 572 Interest and Dividends Receivable......................... -- 1 -- Receivable from Investment Adviser........................ 13 13 13 Prepaid Expenses and Other Assets......................... 6 6 6 ------ ------ ------ Total Assets.............................................. 271 1,111 591 ------ ------ ------ Liabilities: Custodian Fees Payable.................................... 1 1 1 ------ ------ ------ Total Liabilities......................................... 1 1 1 ------ ------ ------ Total Net Assets.......................................... $ 270 $1,110 $ 590 ====== ====== ====== Net Assets: Capital................................................... $ 255 $1,089 $ 568 Accumulated Net Investment Income......................... 1 1 -- Accumulated Net Realized Gains on Investments............. 3 2 5 Net Unrealized Appreciation on Investments................ 11 18 17 ------ ------ ------ Total Net Assets.......................................... $ 270 $1,110 $ 590 ====== ====== ====== NET ASSETS: I Shares.................................................. $ 270 $1,110 $ 590 SHARES OUTSTANDING: I Shares.................................................. 25 100 54 NET ASSET VALUE, OFFERING AND REDEMPTION PRICE PER SHARE: I Shares.................................................. $10.86 $11.11 $10.89
Amounts designated as "--" are $0 or have been rounded to $0. See Notes to Financial Statements. 96 STATEMENTS OF OPERATIONS STI CLASSIC FUNDS For the Year Ended March 31, 2006 (Amounts in thousands)
Aggressive Capital Emerging International Large Cap Growth Stock Appreciation Growth Stock International Equity Relative Fund Fund Fund Equity Fund Index Fund Value Fund ------------ ------------ ------------ ------------- ------------- ---------- Investment Income: Dividend Income....................... $ 457 $ 19,272 $ 82 $ 18,839 $ 16,432 $ 27,131 Interest Income....................... 169 602 27 477 596 1 Securities Lending Income............. -- 550 -- 754 792 460 Less: Foreign Taxes Withheld.......... -- -- -- (1,330) (1,582) -- ------- -------- ------- -------- -------- -------- Total Investment Income............... 626 20,424 109 18,740 16,238 27,592 ------- -------- ------- -------- -------- -------- Expenses: Investment Advisory Fees.............. 1,230 15,897 342 8,023 3,831 11,260 Administration and Fund Accounting Fees................................ 28 419 8 181 164 353 Compliance Services Fees.............. 1 13 -- 6 5 12 Distribution Fees -- A Shares......... 1 499 -- 31 25 115 Distribution and Service Fees -- C Shares.............................. 54 610 1 80 56 822 Custodian Fees........................ 15 75 7 661 602 61 Professional Fees..................... 6 70 1 33 30 71 Insurance Fees........................ 1 30 -- 8 8 20 Registration Fees..................... 15 108 9 31 55 92 Transfer Agent Fees................... 18 158 -- 24 26 73 Printing Fees......................... 20 144 3 58 54 119 Trustees' Fees........................ 3 33 1 14 12 29 Other Expenses........................ 4 20 4 61 109 40 ------- -------- ------- -------- -------- -------- Total Expenses........................ 1,396 18,076 376 9,211 4,977 13,067 Less: Investment Advisory Fees Waived............................ (39) (61) (10) -- (113) -- Less: Administration Fees Waived.... (7) (16) (2) (68) (59) (23) Less: Distribution Fees Waived -- A Shares............................ -- -- -- -- -- (3) Less: Distribution and Service Fees Waived -- C Shares................ (2) -- -- -- -- (6) ------- -------- ------- -------- -------- -------- Net Expenses.......................... 1,348 17,999 364 9,143 4,805 13,035 ------- -------- ------- -------- -------- -------- Net Investment Income (Loss).......... (722) 2,425 (255) 9,597 11,433 14,557 ------- -------- ------- -------- -------- -------- Net Realized and Unrealized Gain (Loss) on Investments and Foreign Currency Transactions: Net Realized Gain (Loss) on Investments Sold and Foreign Currency Transactions............... (3,816) 55,310 1,325 46,895 5,290 110,126 Net Change in Unrealized Appreciation (Depreciation) on Investments and Foreign Currency Transactions....... 27,629 51,746 9,111 110,353 132,522 39,541 Net Increase from Payments by Affiliates (See Note 4.)............ -- -- -- 2 7 -- ------- -------- ------- -------- -------- -------- Total Net Realized and Unrealized Gain on Investments and Foreign Currency Transactions........................ 23,813 107,056 10,436 157,250 137,819 149,667 ------- -------- ------- -------- -------- -------- Net Change in Net Assets from Operations.......................... $23,091 $109,481 $10,181 $166,847 $149,252 $164,224 ======= ======== ======= ======== ======== ========
Amounts designated as "--" are $0 or have been rounded to $0. See Notes to Financial Statements. 97 STATEMENTS OF OPERATIONS STI CLASSIC FUNDS For the Year Ended March 31, 2006 (Amounts in thousands)
Large Cap Mid-Cap Quality Small Cap Small Cap Value Mid-Cap Value Growth Growth Value Equity Fund Equity Fund Equity Fund Stock Fund Stock Fund Equity Fund ----------- ----------- ----------- ---------- ---------- ----------- Investment Income: Dividend Income............................... $22,367 $ 4,744 $ 4,590 $ 1,759 $ 3,604 $ 12,228 Interest Income............................... 677 460 -- 82 1,668 411 Securities Lending Income..................... 216 248 89 21 1,502 194 ------- ------- ------- ------- -------- -------- Total Investment Income....................... 23,260 5,452 4,679 1,862 6,774 12,833 ------- ------- ------- ------- -------- -------- Expenses: Investment Advisory Fees...................... 7,082 3,242 2,338 1,403 14,692 8,673 Administration and Fund Accounting Fees....... 237 82 57 39 348 201 Compliance Services Fees...................... 8 3 2 1 12 7 Distribution Fees -- A Shares................. 217 51 7 2 164 13 Distribution and Service Fees -- C Shares..... 469 139 64 572 340 209 Custodian Fees................................ 53 40 19 15 85 44 Professional Fees............................. 40 16 10 6 65 35 Insurance Fees................................ 15 4 3 3 16 13 Registration Fees............................. 60 29 24 29 61 64 Transfer Agent Fees........................... 95 56 31 65 159 40 Printing Fees................................. 79 33 18 16 150 70 Trustees' Fees................................ 16 6 4 3 27 14 Other Expenses................................ 16 23 7 8 48 17 ------- ------- ------- ------- -------- -------- Total Expenses................................ 8,387 3,724 2,584 2,162 16,167 9,400 Less: Investment Advisory Fees Waived....... -- (2) (51) -- -- -- Less: Administration Fees Waived............ (44) (32) (15) (24) (69) (12) Less: Distribution Fees Waived -- A Shares.................................... -- -- -- -- (13) (1) Less: Distribution and Service Fees Waived -- C Shares........................ -- -- (7) -- -- (104) ------- ------- ------- ------- -------- -------- Net Expenses.................................. 8,343 3,690 2,511 2,138 16,085 9,283 ------- ------- ------- ------- -------- -------- Net Investment Income (Loss).................. 14,917 1,762 2,168 (276) (9,311) 3,550 ------- ------- ------- ------- -------- -------- Net Realized and Unrealized Gain (Loss) on Investments: Net Realized Gain on Investments Sold......... 55,766 31,428 26,814 17,605 129,014 190,190 Net Change in Unrealized Appreciation (Depreciation) on Investments............... 28,775 22,166 9,917 (7,295) 224,874 10,943 ------- ------- ------- ------- -------- -------- Total Net Realized and Unrealized Gain on Investments................................. 84,541 53,594 36,731 10,310 353,888 201,133 ------- ------- ------- ------- -------- -------- Net Change in Net Assets from Operations...... $99,458 $55,356 $38,899 $10,034 $344,577 $204,683 ======= ======= ======= ======= ======== ========
Amounts designated as "--" are $0 or have been rounded to $0. See Notes to Financial Statements. 98 STATEMENTS OF OPERATIONS STI CLASSIC FUNDS For the Year Ended March 31, 2006 (Amounts in thousands)
Life Vision Strategic Life Vision Life Vision Growth and Life Vision Quantitative Balanced Aggressive Conservative Income Moderate Equity Fund Fund Growth Fund Fund Fund Growth Fund ------------ -------- ----------- ------------ ----------- ----------- Investment Income: Dividend Income (1).......................... $ 1,623 $ 1,516 $ 819 $330 $ 2,472 $ 4,617 Interest Income.............................. 121 3,614 -- -- -- -- Securities Lending Income.................... -- 224 -- -- -- -- ------- ------- ------ ---- ------- ------- Total Investment Income...................... 1,744 5,354 819 330 2,472 4,617 ------- ------- ------ ---- ------- ------- Expenses: Investment Advisory Fees..................... 1,505 1,768 79 13 169 243 Administration and Fund Accounting Fees...... 43 53 14 2 30 43 Compliance Services Fees..................... 2 2 -- -- 1 1 Distribution Fees -- A Shares................ 2 19 8 4 17 25 Distribution and Service Fees -- C Shares.... 15 382 6 6 13 9 Distribution Fees -- B Shares................ 47 45 145 122 Custodian Fees............................... 65 24 8 3 9 11 Professional Fees............................ 9 6 3 1 6 8 Insurance Fees............................... 1 5 1 -- 2 3 Registration Fees............................ 10 35 13 10 17 21 Transfer Agent Fees.......................... 7 49 12 4 19 13 Printing Fees................................ 19 18 5 2 11 17 Trustees' Fees............................... 6 4 1 -- 2 3 Other Expenses............................... 18 10 4 5 4 6 ------- ------- ------ ---- ------- ------- Total Expenses............................... 1,702 2,375 201 95 445 525 Less: Investment Advisory Fees Waived or Fees Reimbursed...................... (51) (28) (23) (21) (42) (58) Less: Administration Fees Waived........... -- (15) (5) (2) (7) (8) Less: Distribution Fees Waived -- A Shares................................... -- -- (1) -- (2) (5) Less: Distribution Fees Waived -- B Shares................................... (3) (4) (11) (15) ------- ------- ------ ---- ------- ------- Net Expenses................................. 1,651 2,332 169 68 383 439 ------- ------- ------ ---- ------- ------- Net Investment Income........................ 93 3,022 650 262 2,089 4,178 ------- ------- ------ ---- ------- ------- Net Realized and Unrealized Gain (Loss) on Investments: Capital Gain Received from Investments in Affiliated Investment Companies (1)........ -- -- 1,091 67 1,834 1,945 Net Realized Gain on Investments Sold (1).... 10,158 9,135 959 28 1,961 3,257 Net Change in Unrealized Appreciation (Depreciation) on Investments (1).......... 9,471 (2,870) 4,463 20 6,195 3,923 Net Increase from Payments by Affiliates (See Note 4.)................................... -- 71 -- -- -- -- ------- ------- ------ ---- ------- ------- Total Net Realized and Unrealized Gain on Investments................................ 19,629 6,336 6,513 115 9,990 9,125 ------- ------- ------ ---- ------- ------- Net Change in Net Assets from Operations..... $19,722 $ 9,358 $7,163 $377 $12,079 $13,303 ======= ======= ====== ==== ======= =======
(1)Dividend income, capital gain from investments in affiliated investment companies, net realized gain on securities sold and net change in unrealized appreciation on investments for the Life Vision Funds are attributable to the underlying investments in affiliated investment companies. Amounts designated as "--" are $0 or have been rounded to $0. See Notes to Financial Statements. 99 STATEMENTS OF OPERATIONS STI CLASSIC FUNDS For the Year Ended March 31, 2006 (Amounts in thousands)
Life Vision Life Vision Life Vision Target Date Target Date Target Date 2015 Fund (a) 2025 Fund (b) 2035 Fund (c) ------------- ------------- ------------- Investment Income: Dividend Income (1)................... $ 3 $ 3 $ 3 --- --- --- Total Investment Income............... 3 3 3 --- --- --- Expenses: Investment Advisory Fees.............. -- -- -- Administration and Fund Accounting Fees................................ -- -- -- Compliance Services Fees.............. -- -- -- Custodian Fees........................ 1 1 1 Professional Fees..................... -- -- -- Insurance Fees........................ -- -- -- Registration Fees..................... 10 10 10 Transfer Agent Fees................... -- -- -- Printing Fees......................... -- -- -- Trustees' Fees........................ -- -- -- Other Expenses........................ 2 2 2 --- --- --- Total Expenses........................ 13 13 13 Less: Expenses Reimbursable from Investment Adviser............ (13) (13) (13) Less: Administration Fees Waived.... -- -- -- --- --- --- Net Expenses.......................... -- -- -- --- --- --- Net Investment Income................. 3 3 3 --- --- --- Net Realized and Unrealized Gain on Investments: Capital Gain Received from Investments in Affiliated Investment Companies (1)................................. 3 2 4 Net Realized Gain on Investments Sold (1)................................. -- -- 1 Net Change in Unrealized Appreciation on Investments (1).................. 11 18 17 --- --- --- Total Net Realized and Unrealized Gain on Investments...................... 14 20 22 --- --- --- Net Change in Net Assets from Operations.......................... $17 $23 $25 === === ===
(1)Dividend income, capital gain from investments in affiliated investment companies, net realized gain on securities sold and net change in unrealized appreciation on investments for the Life Vision Funds are attributable to the underlying investments in affiliated investment companies. (a)Commencement of operations October 12, 2005. (b)Commencement of operations October 21, 2005. (c)Commencement of operations November 2, 2005. Amounts designated as "--" are $0 or have been rounded to $0. See Notes to Financial Statements. 100 STATEMENTS OF CHANGES IN NET ASSETS STI CLASSIC FUNDS For the Periods Indicated (Amounts in thousands)
Aggressive Growth Capital Appreciation Stock Fund Fund ------------------------------------ -------------------------------------- 04/01/05- 06/01/04- 02/23/04*- 04/01/05- 06/01/04- 06/01/03- 03/31/06 03/31/05 05/31/04 03/31/06 03/31/05 05/31/04 --------- --------- ---------- ---------- ---------- ---------- Operations: Net Investment Income (Loss)..... $ (722) $ (313) $ (21) $ 2,425 $ 2,917 $ (5,705) Net Realized Gain (Loss) on Investments Sold.............. (3,816) (1,571) (39) 55,310 32,759 240,042 Net Change in Unrealized Appreciation (Depreciation) on Investments....... 27,629 710 389 51,746 (23,096) (77,211) -------- ------- ------- ---------- ---------- ---------- Change in Net Assets from Operations... 23,091 (1,174) 329 109,481 12,580 157,126 -------- ------- ------- ---------- ---------- ---------- Dividends and Distributions to Shareholders: Net Investment Income: I Shares.......... (5) -- -- (2,305) (3,119) -- Net Realized Gains: I Shares.......... -- -- -- (29,860) (22,698) -- A Shares.......... -- -- -- (2,465) (2,096) -- C Shares.......... -- -- -- (1,308) (1,379) -- -------- ------- ------- ---------- ---------- ---------- Total Dividends and Distributions..... (5) -- -- (35,938) (29,292) -- -------- ------- ------- ---------- ---------- ---------- Change in Net Assets from Capital Transactions...... 171,957(a) 45,482 20,286 (316,585)(b) 217,615 11,323 -------- ------- ------- ---------- ---------- ---------- Change in Net Assets.......... 195,043 44,308 20,615 (243,042) 200,903 168,449 -------- ------- ------- ---------- ---------- ---------- Net Assets: Beginning of Period............ 64,923 20,615 -- 1,695,894 1,494,991 1,326,542 -------- ------- ------- ---------- ---------- ---------- End of Period....... $259,966 $64,923 $20,615 $1,452,852 $1,695,894 $1,494,991 ======== ======= ======= ========== ========== ========== Accumulated Net Investment Income (Loss), End of Period.............. $ (11) $ (15) $ (5) $ 120 $ -- $ -- ======== ======= ======= ========== ========== ========== Emerging Growth Stock Fund ------------------------------------ 04/01/05- 06/01/04- 02/23/04*- 03/31/06 03/31/05 05/31/04 --------- --------- ---------- Operations: Net Investment Income (Loss)..... $ (255) $ (144) $ (24) Net Realized Gain (Loss) on Investments Sold.............. 1,325 (1,750) (178) Net Change in Unrealized Appreciation (Depreciation) on Investments....... 9,111 1,765 (39) ------- ------- ------- Change in Net Assets from Operations... 10,181 (129) (241) ------- ------- ------- Dividends and Distributions to Shareholders: Net Investment Income: I Shares.......... -- -- -- Net Realized Gains: I Shares.......... -- -- -- A Shares.......... -- -- -- C Shares.......... -- -- -- ------- ------- ------- Total Dividends and Distributions..... -- -- -- ------- ------- ------- Change in Net Assets from Capital Transactions...... 17,908 7,779 13,205 ------- ------- ------- Change in Net Assets.......... 28,089 7,650 12,964 ------- ------- ------- Net Assets: Beginning of Period............ 20,614 12,964 -- ------- ------- ------- End of Period....... $48,703 $20,614 12,964 ======= ======= ======= Accumulated Net Investment Income (Loss), End of Period.............. $ (15) $ (19) $ (6) ======= ======= =======
* Commencement of operations. (a)Redemption fees have been rounded to $0. (b)Includes redemption fees collected of $1. Amounts designated as "--" are either $0 or have been rounded to $0. See Notes to Financial Statements. 101 STATEMENTS OF CHANGES IN NET ASSETS (continued) STI CLASSIC FUNDS For the Periods Indicated (Amounts in thousands)
Aggressive Growth Capital Appreciation Stock Fund Fund ---------------------------------- --------------------------------- 04/01/05- 06/01/04- 02/23/04*- 04/01/05- 06/01/04- 6/01/03- 03/31/06 03/31/05 05/31/04 03/31/06 03/31/05 05/31/04 --------- --------- ---------- --------- --------- --------- Capital Transactions: I Shares Proceeds from Shares Issued............ $193,192 $40,408 $20,288 $ 390,413 $ 544,096 $ 279,768 Proceeds from Shares Issued in Acquisition.......................... -- 8,427 -- -- -- -- Dividends Reinvested................... 2 -- -- 22,561 18,371 -- Cost of Shares Redeemed................ (19,718) (7,169) (115) (676,657) (304,351) (253,060) -------- ------- ------- --------- --------- --------- Change in Net Assets from I Shares Transactions..................... $173,476 $41,666 $20,173 $(263,683) $ 258,116 $ 26,708 -------- ------- ------- --------- --------- --------- A Shares Proceeds from Shares Issued............ $ 190 $ 115 $ 48 $ 8,707 $ 9,187 $ 15,738 Proceeds from Shares Issued in Acquisition.......................... -- 7 -- -- -- -- Dividends Reinvested................... -- -- -- 2,391 2,016 -- Cost of Shares Redeemed................ (43) (32) -- (38,114) (28,451) (26,645) -------- ------- ------- --------- --------- --------- Change in Net Assets from A Shares Transactions..................... $ 147 $ 90 $ 48 $ (27,016) $ (17,248) $ (10,907) -------- ------- ------- --------- --------- --------- C Shares(1) Proceeds from Shares Issued............ $ 218 $ -- $ 72 $ 1,332 $ 2,626 $ 21,720 Proceeds from Shares Issued in Acquisition.......................... -- 6,502 -- -- -- -- Dividends Reinvested................... -- -- -- 1,268 1,338 -- Cost of Shares Redeemed................ (1,884) (2,776) (7) (28,486) (27,217) (26,198) -------- ------- ------- --------- --------- --------- Change in Net Assets from C Shares Transactions..................... $ (1,666) $ 3,726 $ 65 $ (25,886) $ (23,253) $ (4,478) -------- ------- ------- --------- --------- --------- Change in Net Assets from Capital Transactions........................... $171,957 $45,482 $20,286 $(316,585) $ 217,615 $ 11,323 ======== ======= ======= ========= ========= ========= Share Transactions: I Shares Issued................................. 16,618 3,857 2,062 31,807 44,144 23,848 Issued in Acquisition.................. -- 804 -- -- -- -- Reinvested............................. -- -- -- 1,810 1,461 -- Redeemed............................... (1,805) (744) (12) (54,757) (24,695) (21,521) -------- ------- ------- --------- --------- --------- Change in I Shares Transactions.... 14,813 3,917 2,050 (21,140) 20,910 2,327 -------- ------- ------- --------- --------- --------- A Shares Issued................................. 17 11 5 745 787 1,390 Issued in Acquisition.................. -- 1 -- -- -- -- Reinvested............................. -- -- -- 202 168 -- Redeemed............................... (4) (3) -- (3,241) (2,422) (2,350) -------- ------- ------- --------- --------- --------- Change in A Shares Transactions.... 13 9 5 (2,294) (1,467) (960) -------- ------- ------- --------- --------- --------- C Shares(1) Issued................................. 21 18 7 121 236 2,046 Issued in Acquisition.................. -- 624 -- -- -- -- Reinvested............................. -- -- -- 114 117 -- Redeemed............................... (178) (57) -- (2,575) (2,438) (2,409) -------- ------- ------- --------- --------- --------- Change in C Shares Transactions.... (157) 585 7 (2,340) (2,085) (363) -------- ------- ------- --------- --------- --------- Change in Share Transactions............. 14,669 4,511 2,062 (25,774) 17,358 1,004 ======== ======= ======= ========= ========= ========= Emerging Growth Stock Fund ---------------------------------- 04/01/05- 06/01/04- 02/23/04*- 03/31/06 03/31/05 05/31/04 --------- --------- ---------- Capital Transactions: I Shares Proceeds from Shares Issued............ $25,991 $ 9,477 $13,349 Proceeds from Shares Issued in Acquisition.......................... -- -- -- Dividends Reinvested................... -- -- -- Cost of Shares Redeemed................ (8,236) (1,743) (221) ------- ------- ------- Change in Net Assets from I Shares Transactions..................... $17,755 $ 7,734 $13,128 ------- ------- ------- A Shares Proceeds from Shares Issued............ $ 116 $ 75 $ 40 Proceeds from Shares Issued in Acquisition.......................... -- -- -- Dividends Reinvested................... -- -- -- Cost of Shares Redeemed................ (18) (31) -- ------- ------- ------- Change in Net Assets from A Shares Transactions..................... $ 98 $ 44 $ 40 ------- ------- ------- C Shares(1) Proceeds from Shares Issued............ $ 55 $ 10 $ 44 Proceeds from Shares Issued in Acquisition.......................... -- -- -- Dividends Reinvested................... -- -- -- Cost of Shares Redeemed................ -- (9) (7) ------- ------- ------- Change in Net Assets from C Shares Transactions..................... $ 55 $ 1 $ 37 ------- ------- ------- Change in Net Assets from Capital Transactions........................... $17,908 $ 7,779 $13,205 ======= ======= ======= Share Transactions: I Shares Issued................................. 2,376 1,031 1,367 Issued in Acquisition.................. -- -- -- Reinvested............................. -- -- -- Redeemed............................... (791) (190) (24) ------- ------- ------- Change in I Shares Transactions.... 1,585 841 1,343 ------- ------- ------- A Shares Issued................................. 10 8 4 Issued in Acquisition.................. -- -- -- Reinvested............................. -- -- -- Redeemed............................... (2) (3) -- ------- ------- ------- Change in A Shares Transactions.... 8 5 4 ------- ------- ------- C Shares(1) Issued................................. 5 1 5 Issued in Acquisition.................. -- -- -- Reinvested............................. -- -- -- Redeemed............................... -- (1) (1) ------- ------- ------- Change in C Shares Transactions.... 5 -- 4 ------- ------- ------- Change in Share Transactions............. 1,598 846 1,351 ======= ======= =======
* Commencement of operations. (1) C Shares were offered beginning February 27, 2004 for the Emerging Growth Stock Fund. Amounts designated as "--" are either $0 or have been rounded to $0. See Notes to Financial Statements. 102 STATEMENTS OF CHANGES IN NET ASSETS (continued) STI CLASSIC FUNDS For the Periods Indicated (Amounts in thousands)
International International Equity Fund Equity Index Fund ----------------------------------- ----------------------------------- 04/01/05- 06/01/04- 06/01/03- 04/01/05- 06/01/04- 06/01/03- 03/31/06 03/31/05 05/31/04 03/31/06 03/31/05 05/31/04 --------- --------- --------- --------- --------- --------- Operations: Net Investment Income............ $ 9,597 $ 2,809 $ 2,690 $ 11,433 $ 2,790 $ 4,350 Net Realized Gain (Loss) on Investments Sold and Foreign Currency Transactions...... 46,895 13,245 12,672 5,290 (1,347) 3,571 Net Change in Unrealized Appreciation (Depreciation) on Investments and Foreign Currency Transactions...... 110,353 47,096 42,092 132,522 67,094 82,007 Net Increase from Payments by Affiliates........ 2 -- -- 7 -- -- -------- -------- -------- -------- -------- -------- Change in Net Assets from Operations... 166,847 63,150 57,454 149,252 68,537 89,928 -------- -------- -------- -------- -------- -------- Dividends and Distributions to Shareholders: Net Investment Income: I Shares.......... (8,756) (4,121) (3,390) (9,595) (8,557) (3,907) A Shares.......... (88) (52) (74) (84) (76) (153) C Shares.......... -- (1) (45) (8) (47) (22) Net Realized Gains: I Shares.......... -- -- -- -- -- -- A Shares.......... -- -- -- -- -- -- C Shares.......... -- -- -- -- -- -- -------- -------- -------- -------- -------- -------- Total Dividends and Distributions..... (8,844) (4,174) (3,509) (9,687) (8,680) (4,082) -------- -------- -------- -------- -------- -------- Change in Net Assets from Capital Transactions...... 291,758(a) 91,655 89,770 117,744(b) 100,091 23,822 -------- -------- -------- -------- -------- -------- Change in Net Assets.......... 449,761 150,631 143,715 257,309 159,948 109,668 -------- -------- -------- -------- -------- -------- Net Assets: Beginning of Period............ 497,473 346,842 203,127 531,356 371,408 261,740 -------- -------- -------- -------- -------- -------- End of Period....... $947,234 $497,473 $346,842 $788,665 $531,356 $371,408 ======== ======== ======== ======== ======== ======== Accumulated Net Investment Income (Loss), End of Period.............. $ 1,088 $ 1,301 $ 2,377 $ (1,892) $ (2,610) $ 3,035 ======== ======== ======== ======== ======== ======== Large Cap Relative Value Fund ------------------------------------- 04/01/05- 06/01/04- 06/01/03- 03/31/06 03/31/05 05/31/04 ---------- ---------- --------- Operations: Net Investment Income............ $ 14,557 $ 9,087 $ 7,823 Net Realized Gain (Loss) on Investments Sold and Foreign Currency Transactions...... 110,126 70,618 54,492 Net Change in Unrealized Appreciation (Depreciation) on Investments and Foreign Currency Transactions...... 39,541 38,394 99,001 Net Increase from Payments by Affiliates........ -- -- -- ---------- ---------- -------- Change in Net Assets from Operations... 164,224 118,099 161,316 ---------- ---------- -------- Dividends and Distributions to Shareholders: Net Investment Income: I Shares.......... (13,698) (9,529) (6,962) A Shares.......... (388) (416) (336) C Shares.......... (93) (213) (163) Net Realized Gains: I Shares.......... (52,561) (20,518) -- A Shares.......... (1,849) (1,020) -- C Shares.......... (3,290) (2,064) -- ---------- ---------- -------- Total Dividends and Distributions..... (71,879) (33,760) (7,461) ---------- ---------- -------- Change in Net Assets from Capital Transactions...... 284,015(c) 133,490 63,089 ---------- ---------- -------- Change in Net Assets.......... 376,360 217,829 216,944 ---------- ---------- -------- Net Assets: Beginning of Period............ 1,144,201 926,372 709,428 ---------- ---------- -------- End of Period....... $1,520,561 $1,144,201 $926,372 ========== ========== ======== Accumulated Net Investment Income (Loss), End of Period.............. $ 858 $ 480 $ 1,551 ========== ========== ========
(a)Includes redemption fees collected of $21. (b)Includes redemption fees collected of $5. (c)Includes redemption fees collected of $2. Amounts designated as "--" are either $0 or have been rounded to $0. See Notes to Financial Statements. 103 STATEMENTS OF CHANGES IN NET ASSETS (continued) STI CLASSIC FUNDS For the Periods Indicated (Amounts in thousands)
International International Equity Fund Equity Index Fund --------------------------------- --------------------------------- 04/01/05- 06/01/04- 06/01/03- 04/01/05- 06/01/04- 06/01/03- 03/31/06 03/31/05 05/31/04 03/31/06 03/31/05 05/31/04 --------- --------- --------- --------- --------- --------- Capital Transactions: I Shares Proceeds from Shares Issued......... $ 411,692 $140,746 $144,029 $ 258,434 $157,372 $ 83,517 Proceeds from Shares Issued in Acquisition....................... Dividends Reinvested................ 2,197 1,260 1,379 5,754 5,808 3,067 Cost of Shares Redeemed............. (121,946) (50,085) (54,870) (144,948) (53,751) (64,875) --------- -------- -------- --------- -------- -------- Change in Net Assets from I Shares Transactions........... $ 291,943 $ 91,921 $ 90,538 $ 119,240 $109,429 $ 21,709 --------- -------- -------- --------- -------- -------- A Shares Proceeds from Shares Issued......... $ 4,921 $ 1,904 $ 16,666 $ 1,666 $ 2,408 $ 22,245 Dividends Reinvested................ 77 47 67 81 73 147 Cost of Shares Redeemed............. (3,828) (1,679) (17,896) (2,293) (11,540) (21,325) --------- -------- -------- --------- -------- -------- Change in Net Assets from A Shares Transactions........... $ 1,170 $ 272 $ (1,163) $ (546) $ (9,059) $ 1,067 --------- -------- -------- --------- -------- -------- C Shares Proceeds from Shares Issued......... $ 1,175 $ 1,329 $ 1,875 $ 351 $ 885 $ 2,143 Dividends Reinvested................ -- 1 43 7 44 20 Cost of Shares Redeemed............. (2,530) (1,868) (1,523) (1,308) (1,208) (1,117) --------- -------- -------- --------- -------- -------- Change in Net Assets from C Shares Transactions........... $ (1,355) $ (538) $ 395 $ (950) $ (279) $ 1,046 --------- -------- -------- --------- -------- -------- Change in Net Assets from Capital Transactions........................ $ 291,758 $ 91,655 $ 89,770 $ 117,744 $100,091 $ 23,822 ========= ======== ======== ========= ======== ======== Share Transactions: I Shares Issued.............................. 32,572 12,488 14,743 18,710 12,840 8,041 Issued in Acquisition............... Reinvested.......................... 166 108 141 402 459 290 Redeemed............................ (9,601) (4,485) (6,032) (10,515) (4,534) (6,365) --------- -------- -------- --------- -------- -------- Change in I Shares Transactions.................. 23,137 8,111 8,852 8,597 8,765 1,966 --------- -------- -------- --------- -------- -------- A Shares Issued.............................. 391 175 2,018 115 212 2,436 Reinvested.......................... 6 4 7 6 6 14 Redeemed............................ (302) (154) (2,130) (167) (995) (2,267) --------- -------- -------- --------- -------- -------- Change in A Shares Transactions.................. 95 25 (105) (46) (777) 183 --------- -------- -------- --------- -------- -------- C Shares Issued.............................. 100 128 213 26 78 215 Reinvested.......................... -- -- 5 1 4 2 Redeemed............................ (217) (181) (173) (101) (103) (112) --------- -------- -------- --------- -------- -------- Change in C Shares Transactions.................. (117) (53) 45 (74) (21) 105 --------- -------- -------- --------- -------- -------- Change in Share Transactions.......... 23,115 8,083 8,792 8,477 7,967 2,254 ========= ======== ======== ========= ======== ======== Large Cap Relative Value Fund --------------------------------- 04/01/05- 06/01/04- 06/01/03- 03/31/06 03/31/05 05/31/04 --------- --------- --------- Capital Transactions: I Shares Proceeds from Shares Issued......... $ 552,868 $ 147,236 $ 187,428 Proceeds from Shares Issued in Acquisition....................... -- 106,678 -- Dividends Reinvested................ 35,791 17,106 2,566 Cost of Shares Redeemed............. (286,603) (114,963) (136,004) --------- --------- --------- Change in Net Assets from I Shares Transactions........... $ 302,056 $ 156,057 $ 53,990 --------- --------- --------- A Shares Proceeds from Shares Issued......... $ 9,149 $ 7,636 $ 11,177 Dividends Reinvested................ 2,010 1,302 304 Cost of Shares Redeemed............. (13,233) (14,015) (9,607) --------- --------- --------- Change in Net Assets from A Shares Transactions........... $ (2,074) $ (5,077) $ 1,874 --------- --------- --------- C Shares Proceeds from Shares Issued......... $ 4,631 $ 7,083 $ 29,013 Dividends Reinvested................ 3,215 2,166 154 Cost of Shares Redeemed............. (23,813) (26,739) (21,942) --------- --------- --------- Change in Net Assets from C Shares Transactions........... $ (15,967) $ (17,490) $ 7,225 --------- --------- --------- Change in Net Assets from Capital Transactions........................ $ 284,015 $ 133,490 $ 63,089 ========= ========= ========= Share Transactions: I Shares Issued.............................. 33,293 9,472 13,896 Issued in Acquisition............... -- 6,605 -- Reinvested.......................... 2,139 1,069 190 Redeemed............................ (17,149) (7,447) (9,941) --------- --------- --------- Change in I Shares Transactions.................. 18,283 9,699 4,145 --------- --------- --------- A Shares Issued.............................. 549 496 814 Reinvested.......................... 119 81 22 Redeemed............................ (786) (905) (697) --------- --------- --------- Change in A Shares Transactions.................. (118) (328) 139 --------- --------- --------- C Shares Issued.............................. 284 465 2,178 Reinvested.......................... 195 136 11 Redeemed............................ (1,453) (1,750) (1,603) --------- --------- --------- Change in C Shares Transactions.................. (974) (1,149) 586 --------- --------- --------- Change in Share Transactions.......... 17,191 8,222 4,870 ========= ========= =========
Amounts designated as "--" are either $0 or have been rounded to $0. See Notes to Financial Statements. 104 STATEMENTS OF CHANGES IN NET ASSETS (continued) STI CLASSIC FUNDS For the Periods Indicated (Amounts in thousands)
Large Cap Value Mid-Cap Equity Fund Equity Fund ---------------------------------- --------------------------------- 04/01/05- 06/01/04- 06/01/03- 04/01/05- 06/01/04- 06/01/03- 03/31/06 03/31/05 05/31/04 03/31/06 03/31/05 05/31/04 ---------- --------- --------- --------- --------- --------- Operations: Net Investment Income......... $ 14,917 $ 10,617 $ 10,571 $ 1,762 $ 962 $ 999 Net Realized Gain on Investments Sold............ 55,766 105,214 71,412 31,428 17,287 22,721 Net Change in Unrealized Appreciation (Depreciation) on Investments.............. 28,775 (18,053) 62,760 22,166 15,850 6,629 ---------- -------- -------- -------- -------- -------- Change in Net Assets from Operations.................. 99,458 97,778 144,743 55,356 34,099 30,349 ---------- -------- -------- -------- -------- -------- Dividends and Distributions to Shareholders: Net Investment Income: I Shares.................... (13,581) (11,469) (9,766) (1,634) (964) (869) A Shares.................... (989) (878) (744) (36) (23) (41) C Shares.................... (340) (280) (212) -- -- (12) Net Realized Gains: I Shares.................... -- -- -- (14,705) -- -- A Shares.................... -- -- -- (730) -- -- C Shares.................... -- -- -- (694) -- -- ---------- -------- -------- -------- -------- -------- Total Dividends and Distributions............... (14,910) (12,627) (10,722) (17,799) (987) (922) ---------- -------- -------- -------- -------- -------- Change in Net Assets from Capital Transactions........ (127,185)(a) (10,453) (83,633) 158,637(a) 410 38,582 ---------- -------- -------- -------- -------- -------- Change in Net Assets........ (42,637) 74,698 50,388 196,194 33,522 68,009 ---------- -------- -------- -------- -------- -------- Net Assets: Beginning of Period........... 921,286 846,588 796,200 243,773 210,251 142,242 ---------- -------- -------- -------- -------- -------- End of Period................. $ 878,649 $921,286 $846,588 $439,967 $243,773 $210,251 ========== ======== ======== ======== ======== ======== Accumulated Net Investment Income, End of Period......... $ 9 $ 2 $ 2,012 $ 144 $ 52 $ 77 ========== ======== ======== ======== ======== ======== Mid-Cap Value Equity Fund --------------------------------- 04/01/05- 06/01/04- 06/01/03- 03/31/06 03/31/05 05/31/04 --------- --------- --------- Operations: Net Investment Income......... $ 2,168 $ 1,816 $ 669 Net Realized Gain on Investments Sold............ 26,814 27,508 18,863 Net Change in Unrealized Appreciation (Depreciation) on Investments.............. 9,917 (5,309) 12,849 -------- -------- -------- Change in Net Assets from Operations.................. 38,899 24,015 32,381 -------- -------- -------- Dividends and Distributions to Shareholders: Net Investment Income: I Shares.................... (2,100) (1,906) (653) A Shares.................... (15) (9) -- C Shares.................... (11) (31) (1) Net Realized Gains: I Shares.................... (20,403) -- -- A Shares.................... (208) -- -- C Shares.................... (598) -- -- -------- -------- -------- Total Dividends and Distributions............... (23,335) (1,946) (654) -------- -------- -------- Change in Net Assets from Capital Transactions........ 19,071(a) 39,956 18,350 -------- -------- -------- Change in Net Assets........ 34,635 62,025 50,077 -------- -------- -------- Net Assets: Beginning of Period........... 217,700 155,675 105,598 -------- -------- -------- End of Period................. $252,335 $217,700 $155,675 ======== ======== ======== Accumulated Net Investment Income, End of Period......... $ 54 $ 12 $ 142 ======== ======== ========
(a)Redemption fees have been rounded to $0. Amounts designated as "--" are either $0 or have been rounded to $0. See Notes to Financial Statements. 105 STATEMENTS OF CHANGES IN NET ASSETS (continued) STI CLASSIC FUNDS For the Periods Indicated (Amounts in thousands)
Large Cap Value Mid-Cap Equity Fund Equity Fund --------------------------------- --------------------------------- 04/01/05- 06/01/04- 06/01/03- 04/01/05- 06/01/04- 06/01/03- 03/31/06 03/31/05 05/31/04 03/31/06 03/31/05 05/31/04 --------- --------- --------- --------- --------- --------- Capital Transactions: I Shares Proceeds from Shares Issued............ $ 135,139 $ 169,872 $ 117,907 $250,612 $ 52,779 $ 82,329 Dividends Reinvested................... 9,868 8,648 7,527 8,646 411 360 Cost of Shares Redeemed................ (244,925) (174,545) (204,589) (97,492) (44,085) (48,540) --------- --------- --------- -------- -------- -------- Change in Net Assets from I Shares Transactions..................... $ (99,918) $ 3,975 $ (79,155) $161,766 $ 9,105 $ 34,14 --------- --------- --------- -------- -------- -------- A Shares(1) Proceeds from Shares Issued............ $ 3,961 $ 6,041 $ 8,238 $ 3,061 $ 2,497 $ 6,855 Dividends Reinvested................... 947 834 704 727 22 39 Cost of Shares Redeemed................ (19,040) (11,748) (12,649) (4,203) (7,520) (4,089) --------- --------- --------- -------- -------- -------- Change in Net Assets from A Shares Transactions..................... $ (14,132) $ (4,873) $ (3,707) $ (415) $ (5,001) $ 2,805 --------- --------- --------- -------- -------- -------- C Shares Proceeds from Shares Issued............ $ 1,086 $ 2,931 $ 11,995 $ 1,009 $ 613 $ 6,138 Dividends Reinvested................... 327 267 201 665 -- 11 Cost of Shares Redeemed................ (14,548) (12,753) (12,967) (4,388) (4,307) (4,521) --------- --------- --------- -------- -------- -------- Change in Net Assets from C Shares Transactions..................... $ (13,135) $ (9,555) $ (771) $ (2,714) $ (3,694) $ 1,628 --------- --------- --------- -------- -------- -------- Change in Net Assets from Capital Transactions........................... $(127,185) $ (10,453) $ (83,633) $158,637 $ 410 $ 38,582 ========= ========= ========= ======== ======== ======== Share Transactions: I Shares Issued................................. 10,604 14,111 11,026 19,102 4,657 8,504 Reinvested............................. 757 712 717 667 37 37 Redeemed............................... (18,995) (14,301) (19,413) (7,583) (4,027) (4,889) --------- --------- --------- -------- -------- -------- Change in I Shares Transactions.... (7,634) 522 (7,670) 12,186 667 3,652 --------- --------- --------- -------- -------- -------- A Shares(1) Issued................................. 311 509 785 246 243 721 Reinvested............................. 73 69 67 58 2 4 Redeemed............................... (1,484) (977) (1,175) (341) (714) (440) --------- --------- --------- -------- -------- -------- Change in A Shares Transactions.... (1,100) (399) (323) (37) (469) 285 --------- --------- --------- -------- -------- -------- C Shares Issued................................. 87 246 1,157 87 62 704 Reinvested............................. 25 22 19 58 -- 1 Redeemed............................... (1,152) (1,070) (1,205) (380) (436) (502) --------- --------- --------- -------- -------- -------- Change in C Shares Transactions.... (1,040) (802) (29) (235) (374) 203 --------- --------- --------- -------- -------- -------- Change in Share Transactions............. (9,774) (679) (8,022) 11,914 (176) 4,140 ========= ========= ========= ======== ======== ======== Mid-Cap Value Equity Fund --------------------------------- 04/01/05- 06/01/04- 06/01/03- 03/31/06 03/31/05 05/31/04 --------- --------- --------- Capital Transactions: I Shares Proceeds from Shares Issued............ $ 82,778 $ 59,139 $ 49,725 Dividends Reinvested................... 10,665 692 224 Cost of Shares Redeemed................ (73,941) (18,975) (32,636) -------- -------- -------- Change in Net Assets from I Shares Transactions..................... $ 19,502 $ 40,856 $ 17,313 -------- -------- -------- A Shares(1) Proceeds from Shares Issued............ $ 1,345 $ 1,766 $ 781 Dividends Reinvested................... 187 7 -- Cost of Shares Redeemed................ (970) (794) (195) -------- -------- -------- Change in Net Assets from A Shares Transactions..................... $ 562 $ 979 $ 586 -------- -------- -------- C Shares Proceeds from Shares Issued............ $ 344 $ 930 $ 3,478 Dividends Reinvested................... 576 30 1 Cost of Shares Redeemed................ (1,913) (2,839) (3,028) -------- -------- -------- Change in Net Assets from C Shares Transactions..................... $ (993) $ (1,879) $ 451 -------- -------- -------- Change in Net Assets from Capital Transactions........................... $ 19,071 $ 39,956 $ 18,350 ======== ======== ======== Share Transactions: I Shares Issued................................. 6,541 5,209 5,128 Reinvested............................. 871 59 23 Redeemed............................... (5,921) (1,664) (3,302) -------- -------- -------- Change in I Shares Transactions.... 1,491 3,604 1,849 -------- -------- -------- A Shares(1) Issued................................. 107 153 75 Reinvested............................. 15 1 -- Redeemed............................... (77) (69) (19) -------- -------- -------- Change in A Shares Transactions.... 45 85 56 -------- -------- -------- C Shares Issued................................. 27 82 364 Reinvested............................. 48 3 -- Redeemed............................... (152) (244) (310) -------- -------- -------- Change in C Shares Transactions.... (77) (159) 54 -------- -------- -------- Change in Share Transactions............. 1,459 3,530 1,959 ======== ======== ========
(1) A Shares were offered beginning on October 27, 2003 for the Mid-Cap Value Equity Fund. Amounts designated as "--" are either $0 or have been rounded to $0. See Notes to Financial Statements. 106 STATEMENTS OF CHANGES IN NET ASSETS (continued) STI CLASSIC FUNDS For the Periods Indicated (Amounts in thousands)
Quality Growth Small Cap Stock Fund Growth Stock Fund ---------------------------------- ------------------------------------ 04/01/05- 06/01/04- 06/01/03- 04/01/05- 06/01/04- 06/01/03- 03/31/06 03/31/05 05/31/04 03/31/06 03/31/05 05/31/04 --------- --------- --------- ---------- ---------- --------- Operations: Net Investment Income (Loss)................ $ (276) $ 187 $ (1,885) $ (9,311) $ (3,979) $ (7,285) Net Realized Gain on Investments Sold...... 17,605 26,996 31,183 129,014 105,648 145,086 Net Change in Unrealized Appreciation (Depreciation) on Investments........... (7,295) (21,017) 2,584 224,874 (13,579) 80,171 -------- -------- --------- ---------- ---------- -------- Change in Net Assets from Operations....... 10,034 6,166 31,882 344,577 88,090 217,972 -------- -------- --------- ---------- ---------- -------- Dividends and Distributions to Shareholders: Net Investment Income: I Shares.............. (463) (178) -- -- -- -- A Shares.............. (2) (1) -- -- -- -- C Shares.............. (64) -- -- -- -- -- Net Realized Gains: I Shares.............. -- -- -- (105,684) (95,566) -- A Shares.............. -- -- -- (3,574) (5,207) -- C Shares.............. -- -- -- (2,682) (4,471) -- -------- -------- --------- ---------- ---------- -------- Total Dividends and Distributions......... (529) (179) -- (111,940) (105,244) -- -------- -------- --------- ---------- ---------- -------- Change in Net Assets from Capital Transactions.......... (53,743)(a) (76,451) (102,333) 490,131(b) 161,611 37,420 -------- -------- --------- ---------- ---------- -------- Change in Net Assets.. (44,238) (70,464) (70,451) 722,768 144,457 255,392 -------- -------- --------- ---------- ---------- -------- Net Assets: Beginning of Period..... 167,599 238,063 308,514 1,015,051 870,594 615,202 -------- -------- --------- ---------- ---------- -------- End of Period........... $123,361 $167,599 $ 238,063 $1,737,819 $1,015,051 $870,594 ======== ======== ========= ========== ========== ======== Accumulated Net Investment Income (Loss), End of Period.................. $ -- $ 528 $ (1,149) $ -- $ -- $ -- ======== ======== ========= ========== ========== ======== Small Cap Value Equity Fund ---------------------------------- 04/01/05- 06/01/04- 06/01/03- 03/31/06 03/31/05 05/31/04 --------- --------- --------- Operations: Net Investment Income (Loss)................ $ 3,550 $ 1,274 $ 2,067 Net Realized Gain on Investments Sold...... 190,190 68,368 66,912 Net Change in Unrealized Appreciation (Depreciation) on Investments........... 10,943 51,510 113,873 --------- -------- -------- Change in Net Assets from Operations....... 204,683 121,152 182,852 --------- -------- -------- Dividends and Distributions to Shareholders: Net Investment Income: I Shares.............. (3,434) (2,046) (2,433) A Shares.............. (13) (5) -- C Shares.............. (118) (18) (5) Net Realized Gains: I Shares.............. (142,285) (54,153) -- A Shares.............. (974) (303) -- C Shares.............. (8,202) (3,428) -- --------- -------- -------- Total Dividends and Distributions......... (155,026) (59,953) (2,438) --------- -------- -------- Change in Net Assets from Capital Transactions.......... (11,427)(a) (18,862) (99) --------- -------- -------- Change in Net Assets.. 38,230 42,337 180,315 --------- -------- -------- Net Assets: Beginning of Period..... 775,184 732,847 552,532 --------- -------- -------- End of Period........... $ 813,414 $775,184 $732,847 ========= ======== ======== Accumulated Net Investment Income (Loss), End of Period.................. $ 273 $ 288 $ 1,083 ========= ======== ========
(a)Redemption fees have been rounded to $0. (b)Includes redemption fees collected of $4. Amounts designated as "--" are either $0 or have been rounded to $0. See Notes to Financial Statements. 107 STATEMENTS OF CHANGES IN NET ASSETS (continued) STI CLASSIC FUNDS For the Periods Indicated (Amounts in thousands)
Quality Growth Small Cap Stock Fund Growth Stock Fund --------------------------------- --------------------------------- 04/01/05- 06/01/04- 06/01/03- 04/01/05- 06/01/04- 06/01/03- 03/31/06 03/31/05 05/31/04 03/31/06 03/31/05 05/31/04 --------- --------- --------- --------- --------- --------- Capital Transactions: I Shares Proceeds from Shares Issued...... $ 7,349 $ 3,796 $ 10,614 $ 836,404 $ 280,968 $ 208,034 Dividends Reinvested............. 68 26 -- 86,652 70,587 -- Cost of Shares Redeemed.......... (37,892) (53,299) (84,727) (441,501) (185,101) (187,311) -------- -------- --------- --------- --------- --------- Change in Net Assets from I Shares Transactions........ $(30,475) $(49,477) $ (74,113) $ 481,555 $ 166,454 $ 20,723 -------- -------- --------- --------- --------- --------- A Shares(1) Proceeds from Shares Issued...... $ 582 $ 990 $ 664 $ 19,918 $ 16,113 $ 18,285 Dividends Reinvested............. 1 1 -- 3,405 5,004 -- Cost of Shares Redeemed.......... (825) (707) (318) (10,408) (21,911) (7,136) -------- -------- --------- --------- --------- --------- Change in Net Assets from A Shares Transactions........ $ (242) $ 284 $ 346 $ 12,915 $ (794) $ 11,149 -------- -------- --------- --------- --------- --------- C Shares Proceeds from Shares Issued...... $ 550 $ 694 $ 4,890 $ 2,166 $ 2,010 $ 14,012 Dividends Reinvested............. 59 -- -- 2,539 4,297 -- Cost of Shares Redeemed.......... (23,635) (27,952) (33,456) (9,044) (10,356) (8,464) -------- -------- --------- --------- --------- --------- Change in Net Assets from C Shares Transactions........ $(23,026) $(27,258) $ (28,566) $ (4,339) $ (4,049) $ 5,548 -------- -------- --------- --------- --------- --------- Change in Net Assets from Capital Transactions..................... $(53,743) $(76,451) $(102,333) $ 490,131 $ 161,611 $ 37,420 ======== ======== ========= ========= ========= ========= Share Transactions: I Shares Issued........................... 290 161 474 38,694 13,718 11,405 Reinvested....................... 3 1 -- 4,066 3,464 -- Redeemed......................... (1,509) (2,270) (3,816) (20,410) (9,120) (9,774) -------- -------- --------- --------- --------- --------- Change in I Shares Transactions............... (1,216) (2,108) (3,342) 22,350 8,062 1,631 -------- -------- --------- --------- --------- --------- A Shares(1) Issued........................... 23 42 29 944 795 960 Reinvested....................... -- -- -- 164 251 -- Redeemed......................... (33) (30) (13) (498) (1,092) (381) -------- -------- --------- --------- --------- --------- Change in A Shares Transactions............... (10) 12 16 610 (46) 579 -------- -------- --------- --------- --------- --------- C Shares Issued........................... 24 31 235 110 105 812 Reinvested....................... 3 -- -- 131 227 -- Redeemed......................... (1,016) (1,253) (1,562) (466) (540) (467) -------- -------- --------- --------- --------- --------- Change in C Shares Transactions............... (989) (1,222) (1,327) (225) (208) 345 -------- -------- --------- --------- --------- --------- Change in Share Transactions....... (2,215) (3,318) (4,653) 22,735 7,808 2,555 ======== ======== ========= ========= ========= ========= Small Cap Value Equity Fund --------------------------------- 04/01/05- 06/01/04- 06/01/03- 03/31/06 03/31/05 05/31/04 --------- --------- --------- Capital Transactions: I Shares Proceeds from Shares Issued...... $ 173,077 $ 100,626 $ 194,843 Dividends Reinvested............. 106,300 36,386 1,303 Cost of Shares Redeemed.......... (290,041) (149,795) (200,738) --------- --------- --------- Change in Net Assets from I Shares Transactions........ $ (10,664) $ (12,783) $ (4,592) --------- --------- --------- A Shares(1) Proceeds from Shares Issued...... $ 1,825 $ 4,273 $ 5,183 Dividends Reinvested............. 644 241 -- Cost of Shares Redeemed.......... (2,054) (4,286) (1,130) --------- --------- --------- Change in Net Assets from A Shares Transactions........ $ 415 $ 228 $ 4,053 --------- --------- --------- C Shares Proceeds from Shares Issued...... $ 696 $ 864 $ 11,644 Dividends Reinvested............. 7,953 3,288 5 Cost of Shares Redeemed.......... (9,827) (10,459) (11,209) --------- --------- --------- Change in Net Assets from C Shares Transactions........ $ (1,178) $ (6,307) $ 440 --------- --------- --------- Change in Net Assets from Capital Transactions..................... $ (11,427) $ (18,862) $ (99) ========= ========= ========= Share Transactions: I Shares Issued........................... 8,501 5,177 12,101 Reinvested....................... 5,755 1,847 87 Redeemed......................... (14,423) (7,794) (12,580) --------- --------- --------- Change in I Shares Transactions............... (167) (770) (392) --------- --------- --------- A Shares(1) Issued........................... 89 219 290 Reinvested....................... 35 12 -- Redeemed......................... (102) (222) (65) --------- --------- --------- Change in A Shares Transactions............... 22 9 225 --------- --------- --------- C Shares Issued........................... 35 45 759 Reinvested....................... 442 170 -- Redeemed......................... (496) (549) (695) --------- --------- --------- Change in C Shares Transactions............... (19) (334) 64 --------- --------- --------- Change in Share Transactions....... (164) (1,095) (103) ========= ========= =========
(1) A Shares were offered beginning on October 27, 2003 and October 9, 2003 for the Quality Growth Stock Fund and Small Cap Value Equity Fund, respectively. Amounts designated as "--" are either $0 or have been rounded to $0. See Notes to Financial Statements. 108 STATEMENTS OF CHANGES IN NET ASSETS (continued) STI CLASSIC FUNDS For the Periods Indicated (Amounts in thousands)
Strategic Quantitative Equity Fund Balanced Fund ---------------------------------- ---------------------------------- 04/01/05- 06/01/04- 08/07/03*- 04/01/05- 06/01/04- 06/01/03- 03/31/06 03/31/05 05/31/04 03/31/06 03/31/05 05/31/04 --------- --------- ---------- --------- --------- --------- Operations: Net Investment Income (Loss).... $ 93 $ (143) $ (90) $ 3,022 $ 3,638 $ 4,071 Capital Gain Received from Investments in Affiliated Investment Companies.......... -- -- -- -- -- -- Net Realized Gain on Investments Sold.......................... 10,158 11,057 3,973 9,135 8,294 26,469 Net Change in Unrealized Appreciation (Depreciation) on Investments................... 9,471 1,327 3,104 (2,870) (2,297) (17,586) Net Increase from Payments by Affiliates.................... -- -- -- 71 -- -- -------- ------- ------- --------- -------- -------- Change in Net Assets from Operations.................... 19,722 12,241 6,987 9,358 9,635 12,954 -------- ------- ------- --------- -------- -------- Dividends and Distributions to Shareholders: Net Investment Income: I Shares...................... (60) -- -- (2,575) (3,918) (3,826) A Shares...................... -- -- -- (101) (130) (114) C Shares...................... -- -- -- (312) (382) (403) B Shares...................... Net Realized Gains: I Shares...................... (12,525) (4,730) (972) (8,598) (2,083) -- A Shares...................... (77) (16) (1) (380) (83) -- C Shares...................... (118) (90) (21) (2,237) (485) -- B Shares...................... -------- ------- ------- --------- -------- -------- Total Dividends and Distributions................. (12,780) (4,836) (994) (14,203)(a) (7,081) (4,343) -------- ------- ------- --------- -------- -------- Change in Net Assets from Capital Transactions.......... 185,415 19,124 62,547 (139,394) (70,534) 5,441 -------- ------- ------- --------- -------- -------- Change in Net Assets.......... 192,357 26,529 68,540 (144,239) (67,980) 14,052 -------- ------- ------- --------- -------- -------- Net Assets: Beginning of Period............. 95,069 68,540 -- 250,399 318,379 304,327 -------- ------- ------- --------- -------- -------- End of Period................... $287,426 $95,069 $68,540 $ 106,160 $250,399 $318,379 ======== ======= ======= ========= ======== ======== Accumulated Net Investment Income (Loss), End of Period........... $ 14 $ (19) $ (18) $ 189 $ 149 $ 893 ======== ======= ======= ========= ======== ======== Life Vision Aggressive Growth Fund ------------------------------------ 04/01/05- 06/01/04- 06/01/03- 03/31/06 03/31/05 05/31/04 ---------- ---------- ---------- Operations: Net Investment Income (Loss).... $ 650 $ 484 $ 124 Capital Gain Received from Investments in Affiliated Investment Companies.......... 1,091 534 -- Net Realized Gain on Investments Sold.......................... 959 478 325 Net Change in Unrealized Appreciation (Depreciation) on Investments................... 4,463 2,602 6,169 Net Increase from Payments by Affiliates.................... -- -- -- ------- ------- ------- Change in Net Assets from Operations.................... 7,163 4,098 6,618 ------- ------- ------- Dividends and Distributions to Shareholders: Net Investment Income: I Shares...................... (583) (447) (120) A Shares...................... (22) (15) -- C Shares...................... (5) -- B Shares...................... (42) (29) (4) Net Realized Gains: (12) I Shares...................... (519) -- -- A Shares...................... (26) -- -- C Shares...................... (8) -- -- B Shares...................... (64) -- -- ------- ------- ------- Total Dividends and Distributions................. (1,269) (491) (136) ------- ------- ------- Change in Net Assets from Capital Transactions.......... 5,577 3,506 7,487 ------- ------- ------- Change in Net Assets.......... 11,471 7,113 13,969 ------- ------- ------- Net Assets: Beginning of Period............. 50,815 43,702 29,733 ------- ------- ------- End of Period................... $62,286 $50,815 $43,702 ======= ======= ======= Accumulated Net Investment Income (Loss), End of Period........... $ 1 $ 1 $ -- ======= ======= =======
* Commencement of operations. (a)Redemption fees have been rounded to $0. Amounts designated as "--" are either $0 or have been rounded to $0. See Notes to Financial Statements. 109 STATEMENTS OF CHANGES IN NET ASSETS (continued) STI CLASSIC FUNDS For the Periods Indicated (Amounts in thousands)
Strategic Quantitative Equity Fund Balanced Fund ---------------------------------- --------------------------------- 04/01/05- 06/01/04- 08/07/03*- 04/01/05- 06/01/04- 06/01/03- 03/31/06 03/31/05 05/31/04 03/31/06 03/31/05 05/31/04 --------- --------- ---------- --------- --------- --------- Capital Transactions: I Shares Proceeds from Shares Issued.............. $220,812 $ 30,156 $63,961 $ 30,214 $ 35,927 $ 70,058 Dividends Reinvested..................... 4,633 2,338 655 10,973 5,707 3,612 Cost of Shares Redeemed.................. (40,814) (13,347) (3,492) (163,733) (91,992) (64,462) -------- -------- ------- --------- -------- -------- Change in Net Assets from I Shares Transactions....................... $184,631 $ 19,147 $60,854 $(122,546) $(50,358) $ 9,208 -------- -------- ------- --------- -------- -------- A Shares(1) Proceeds from Shares Issued.............. $ 904 $ 226 $ 156 $ 259 $ 958 $ 2,139 Dividends Reinvested..................... 68 12 1 473 211 112 Cost of Shares Redeemed.................. (212) (9) (3) (3,423) (1,437) (1,862) -------- -------- ------- --------- -------- -------- Change in Net Assets from A Shares Transactions....................... $ 760 $ 229 $ 154 $ (2,691) $ (268) $ 389 -------- -------- ------- --------- -------- -------- C Shares(2) Proceeds from Shares Issued.............. $ 467 $ 139 $ 1,627 $ 816 $ 1,374 $ 18,913 Dividends Reinvested..................... 111 79 19 2,443 826 376 Cost of Shares Redeemed.................. (554) (470) (107) (17,416) (22,108) (23,445) -------- -------- ------- --------- -------- -------- Change in Net Assets from C Shares Transactions....................... $ 24 $ (252) $ 1,539 $ (14,157) $(19,908) $ (4,156) -------- -------- ------- --------- -------- -------- B Shares Proceeds from Shares Issued.............. Dividends Reinvested..................... Cost of Shares Redeemed.................. Change in Net Assets from B Shares Transactions....................... Change in Net Assets from Capital Transactions............................. $185,415 $ 19,124 $62,547 $(139,394) $(70,534) $ 5,441 ======== ======== ======= ========= ======== ======== Share Transactions: I Shares Issued................................... 16,302 2,392 5,767 2,483 2,927 5,833 Reinvested............................... 353 182 58 923 459 299 Redeemed................................. (2,988) (1,068) (296) (13,467) (7,420) (5,342) -------- -------- ------- --------- -------- -------- Change in I Shares Transactions...... 13,667 1,506 5,529 (10,061) (4,034) 790 -------- -------- ------- --------- -------- -------- A Shares(1) Issued................................... 67 18 13 21 78 176 Reinvested............................... 5 1 -- 40 17 9 Redeemed................................. (16) (1) -- (278) (116) (152) -------- -------- ------- --------- -------- -------- Change in A Shares Transactions...... 56 18 13 (217) (21) 33 -------- -------- ------- --------- -------- -------- C Shares(2) Issued................................... 35 12 138 67 112 1,596 Reinvested............................... 9 6 2 208 67 31 Redeemed................................. (42) (37) (9) (1,441) (1,806) (1,944) -------- -------- ------- --------- -------- -------- Change in C Shares Transactions...... 2 (19) 131 (1,166) (1,627) (317) -------- -------- ------- --------- -------- -------- B Shares Issued................................... Reinvested............................... Redeemed................................. Change from B Shares Transactions.... Change in Share Transactions............... 13,725 1,505 5,673 (11,444) (5,682) 506 ======== ======== ======= ========= ======== ======== Life Vision Aggressive Growth Fund --------------------------------- 04/01/05- 06/01/04- 06/01/03- 03/31/06 03/31/05 05/31/04 --------- --------- --------- Capital Transactions: I Shares Proceeds from Shares Issued.............. $ 15,960 $ 8,047 $ 8,576 Dividends Reinvested..................... 1,089 445 132 Cost of Shares Redeemed.................. (12,553) (6,786) (4,939) -------- ------- ------- Change in Net Assets from I Shares Transactions....................... $ 4,496 $ 1,706 $ 3,769 -------- ------- ------- A Shares(1) Proceeds from Shares Issued.............. $ 957 $ 1,337 $ 858 Dividends Reinvested..................... 46 15 -- Cost of Shares Redeemed.................. (711) (254) -- -------- ------- ------- Change in Net Assets from A Shares Transactions....................... $ 292 $ 1,098 $ 858 -------- ------- ------- C Shares(2) Proceeds from Shares Issued.............. $ 1,184 Dividends Reinvested..................... 13 Cost of Shares Redeemed.................. (120) -------- Change in Net Assets from C Shares Transactions....................... $ 1,077 -------- B Shares Proceeds from Shares Issued.............. $ 401 $ 994 $ 3,147 Dividends Reinvested..................... 104 29 4 Cost of Shares Redeemed.................. (793) (321) (291) -------- ------- ------- Change in Net Assets from B Shares Transactions....................... $ (288) $ 702 $ 2,860 -------- ------- ------- Change in Net Assets from Capital Transactions............................. $ 5,577 $ 3,506 $ 7,487 ======== ======= ======= Share Transactions: I Shares Issued................................... 1,378 751 894 Reinvested............................... 92 40 14 Redeemed................................. (1,098) (636) (509) -------- ------- ------- Change in I Shares Transactions...... 372 155 399 -------- ------- ------- A Shares(1) Issued................................... 84 126 85 Reinvested............................... 4 1 -- Redeemed................................. (63) (24) -- -------- ------- ------- Change in A Shares Transactions...... 25 103 85 -------- ------- ------- C Shares(2) Issued................................... 102 Reinvested............................... 1 Redeemed................................. (10) -------- Change in C Shares Transactions...... 93 -------- B Shares Issued................................... 36 95 334 Reinvested............................... 9 3 1 Redeemed................................. (69) (31) (29) -------- ------- ------- Change from B Shares Transactions.... (24) 67 306 -------- ------- ------- Change in Share Transactions............... 466 325 790 ======== ======= =======
* Commencement of operations. (1) A Shares were offered beginning on October 8, 2003 and October 16, 2003 for the Strategic Quantitative Equity Fund and Life Vision Aggressive Growth Fund, respectively. (2) C Shares were offered beginning on October 13, 2003 and April 1, 2005 for the Strategic Quantitative Equity Fund and Life Vision Aggressive Growth Fund, respectively. Amounts designated as "--" are either $0 or have been rounded to $0. See Notes to Financial Statements. 110 STATEMENTS OF CHANGES IN NET ASSETS (continued) STI CLASSIC FUNDS For the Periods Indicated (Amounts in thousands)
Life Vision Conservative Fund Life Vision Growth and Income Fund --------------------------------- ------------------------------------ 04/01/05- 06/01/04- 06/01/03- 04/01/05- 06/01/04- 06/01/03- 03/31/06 03/31/05 05/31/04 03/31/06 03/31/05 05/31/04 --------- --------- --------- ---------- ---------- ---------- Operations: Net Investment Income............. $ 262 $ 114 $ 61 $ 2,089 $ 1,426 $ 1,051 Capital Gain Received from Investments in Affiliated Investment Companies............ 67 31 1 1,834 873 8 Net Realized Gain on Investments Sold............................ 28 22 9 1,961 1,933 2,565 Net Change in Unrealized Appreciation (Depreciation) on Investments..................... 20 93 95 6,195 3,161 8,207 ------- ------ ------ -------- -------- ------- Change in Net Assets from Operations...................... 377 260 166 12,079 7,393 11,831 ------- ------ ------ -------- -------- ------- Dividends and Distributions to Shareholders: Net Investment Income: I Shares........................ (74) (6) -- (1,750) (1,371) (972) A Shares........................ (36) (10) (3) (83) (37) (5) C Shares........................ (17) -- -- (21) -- -- B Shares........................ (128) (106) (47) (204) (142) (58) Net Realized Gains: I Shares........................ (14) (1) -- -- -- -- A Shares........................ (7) (1) -- -- -- -- C Shares........................ (4) -- -- -- -- -- B Shares........................ (29) (19) -- -- -- -- ------- ------ ------ -------- -------- ------- Total Dividends and Distributions................... (309) (143) (50) (2,058) (1,550) (1,035) ------- ------ ------ -------- -------- ------- Change in Net Assets from Capital Transactions.................... 3,691 1,022 4,600 6,593(a) 12,324 17,307 ------- ------ ------ -------- -------- ------- Change in Net Assets............ 3,759 1,139 4,716 16,614 18,167 28,103 ------- ------ ------ -------- -------- ------- Net Assets: Beginning of Period............... 6,655 5,516 800 107,736 89,569 61,466 ------- ------ ------ -------- -------- ------- End of Period..................... $10,414 $6,655 $5,516 $124,350 $107,736 $89,569 ======= ====== ====== ======== ======== ======= Accumulated Net Investment Income, End of Period..................... $ 11 $ 4 $ 12 $ 40 $ 9 $ 133 ======= ====== ====== ======== ======== ======= Life Vision Moderate Growth Fund --------------------------------- 04/01/05- 06/01/04- 06/01/03- 03/31/06 03/31/05 05/31/04 --------- --------- --------- Operations: Net Investment Income............. $ 4,178 $ 2,791 $ 1,907 Capital Gain Received from Investments in Affiliated Investment Companies............ 1,945 1,309 12 Net Realized Gain on Investments Sold............................ 3,257 4,204 2,529 Net Change in Unrealized Appreciation (Depreciation) on Investments..................... 3,923 1,375 9,804 -------- -------- -------- Change in Net Assets from Operations...................... 13,303 9,679 14,252 -------- -------- -------- Dividends and Distributions to Shareholders: Net Investment Income: I Shares........................ (3,669) (2,776) (1,737) A Shares........................ (157) (102) (19) C Shares........................ (20) -- -- B Shares........................ (266) (203) (90) Net Realized Gains: I Shares........................ (3,087) (682) -- A Shares........................ (163) (26) -- C Shares........................ (26) -- -- B Shares........................ (315) (71) -- -------- -------- -------- Total Dividends and Distributions................... (7,703) (3,860) (1,846) -------- -------- -------- Change in Net Assets from Capital Transactions.................... 18,789(a) 11,225 29,617 -------- -------- -------- Change in Net Assets............ 24,389 17,044 42,023 -------- -------- -------- Net Assets: Beginning of Period............... 155,480 138,436 96,413 -------- -------- -------- End of Period..................... $179,869 $155,480 $138,436 ======== ======== ======== Accumulated Net Investment Income, End of Period..................... $ 116 $ 50 $ 340 ======== ======== ========
(a)Redemption fees have been rounded to $0. Amounts designated as "--" are either $0 or have been rounded to $0. See Notes to Financial Statements. 111 STATEMENTS OF CHANGES IN NET ASSETS (continued) STI CLASSIC FUNDS For the Periods Indicated (Amounts in thousands)
Life Vision Life Vision Growth Conservative Fund and Income Fund --------------------------------- --------------------------------- 04/01/05- 06/01/04- 06/01/03- 04/01/05- 06/01/04- 06/01/03- 03/31/06 03/31/05 05/31/04 03/31/06 03/31/05 05/31/04 --------- --------- --------- --------- --------- --------- Capital Transactions: I Shares(1) Proceeds from Shares Issued................ $3,189 $ 555 $ 30 $ 28,839 $ 17,841 $ 22,469 Dividends Reinvested....................... 84 6 -- 1,747 1,371 971 Cost of Shares Redeemed.................... (613) (176) -- (28,075) (11,550) (17,771) ------ ------ ------- -------- -------- -------- Change in Net Assets from I Shares Transactions......................... $2,660 $ 385 $ 30 $ 2,511 $ 7,662 $ 5,669 ------ ------ ------- -------- -------- -------- A Shares(2) Proceeds from Shares Issued................ $ 717 $ 302 $ 485 $ 2,726 $ 2,267 $ 1,432 Dividends Reinvested....................... 34 7 2 82 37 5 Cost of Shares Redeemed.................... (42) (185) (10) (1,078) (316) (24) ------ ------ ------- -------- -------- -------- Change in Net Assets from A Shares Transactions......................... $ 709 $ 124 $ 477 $ 1,730 $ 1,988 $ 1,413 ------ ------ ------- -------- -------- -------- C Shares(3) Proceeds from Shares Issued................ $ 930 $ 3,013 Dividends Reinvested....................... 18 20 Cost of Shares Redeemed.................... (115) (342) ------ -------- Change in Net Assets from C Shares Transactions......................... $ 833 $ 2,691 ------ -------- B Shares Proceeds from Shares Issued................ $ 120 $ 611 $ 4,680 $ 1,586 $ 4,275 $ 10,738 Dividends Reinvested....................... 133 106 40 193 134 54 Cost of Shares Redeemed.................... (764) (204) (627) (2,118) (1,735) (567) ------ ------ ------- -------- -------- -------- Change in Net Assets from B Shares Transactions......................... $ (511) $ 513 $ 4,093 $ (339) $ 2,674 $ 10,225 ------ ------ ------- -------- -------- -------- Change in Net Assets from Capital Transactions............................... $3,691 $1,022 $ 4,600 $ 6,593 $ 12,324 $ 17,307 ====== ====== ======= ======== ======== ======== Share Transactions: I Shares(1) Issued..................................... 284 49 3 2,447 1,614 2,228 Reinvested................................. 8 1 -- 146 122 95 Redeemed................................... (55) (16) -- (2,382) (1,041) (1,716) ------ ------ ------- -------- -------- -------- Change in I Shares Transactions........ 237 34 3 211 695 607 ------ ------ ------- -------- -------- -------- A Shares(2) Issued..................................... 64 27 45 232 206 135 Reinvested................................. 3 1 -- 7 3 -- Redeemed................................... (4) (17) (1) (91) (28) (2) ------ ------ ------- -------- -------- -------- Change in A Shares Transactions........ 63 11 44 148 181 133 ------ ------ ------- -------- -------- -------- C Shares(3) Issued..................................... 83 254 Reinvested................................. 2 2 Redeemed................................... (10) (28) ------ -------- Change in C Shares Transactions........ 75 228 ------ -------- B Shares Issued..................................... 11 56 438 138 390 1,049 Reinvested................................. 12 10 4 16 12 5 Redeemed................................... (68) (19) (58) (179) (157) (54) ------ ------ ------- -------- -------- -------- Change from B Shares Transactions...... (45) 47 384 (25) 245 1,000 ------ ------ ------- -------- -------- -------- Change in Share Transactions................. 330 92 431 562 1,121 1,740 ====== ====== ======= ======== ======== ======== Life Vision Moderate Growth Fund --------------------------------- 04/01/05- 06/01/04- 06/01/03- 03/31/06 03/31/05 05/31/04 --------- --------- --------- Capital Transactions: I Shares(1) Proceeds from Shares Issued................ $ 52,916 $ 29,536 $ 45,870 Dividends Reinvested....................... 6,685 3,448 1,730 Cost of Shares Redeemed.................... (38,674) (27,216) (31,191) -------- -------- -------- Change in Net Assets from I Shares Transactions......................... $ 20,927 $ 5,768 $ 16,409 -------- -------- -------- A Shares(2) Proceeds from Shares Issued................ $ 2,619 $ 4,620 $ 4,397 Dividends Reinvested....................... 311 124 18 Cost of Shares Redeemed.................... (5,501) (247) (898) -------- -------- -------- Change in Net Assets from A Shares Transactions......................... $ (2,571) $ 4,497 $ 3,517 -------- -------- -------- C Shares(3) Proceeds from Shares Issued................ $ 1,691 Dividends Reinvested....................... 43 Cost of Shares Redeemed.................... (92) -------- Change in Net Assets from C Shares Transactions......................... $ 1,642 -------- B Shares Proceeds from Shares Issued................ $ 620 $ 1,819 $ 10,808 Dividends Reinvested....................... 561 265 87 Cost of Shares Redeemed.................... (2,390) (1,124) (1,204) -------- -------- -------- Change in Net Assets from B Shares Transactions......................... $ (1,209) $ 960 $ 9,691 -------- -------- -------- Change in Net Assets from Capital Transactions............................... $ 18,789 $ 11,225 $ 29,617 ======== ======== ======== Share Transactions: I Shares(1) Issued..................................... 4,953 2,836 4,736 Reinvested................................. 625 330 179 Redeemed................................... (3,619) (2,620) (3,218) -------- -------- -------- Change in I Shares Transactions........ 1,959 546 1,697 -------- -------- -------- A Shares(2) Issued..................................... 246 439 440 Reinvested................................. 29 12 2 Redeemed................................... (517) (24) (90) -------- -------- -------- Change in A Shares Transactions........ (242) 427 352 -------- -------- -------- C Shares(3) Issued..................................... 160 Reinvested................................. 4 Redeemed................................... (9) -------- Change in C Shares Transactions........ 155 -------- B Shares Issued..................................... 59 179 1,135 Reinvested................................. 53 25 9 Redeemed................................... (226) (109) (123) -------- -------- -------- Change from B Shares Transactions...... (114) 95 1,021 -------- -------- -------- Change in Share Transactions................. 1,758 1,068 3,070 ======== ======== ========
(1) I Shares were offered beginning on November 6, 2003 for the Life Vision Conservative Fund. (2) A Shares were offered beginning on November 11, 2003, November 5, 2003 and October 10, 2003 for the Life Vision Conservative Fund, Life Vision Growth and Income Fund and Life Vision Moderate Growth Fund, respectively. (3) C Shares were offered beginning on April 1, 2005 for the Life Vision Conservative Fund, the Life Vision Growth and Income Fund and Life Vision Moderate Growth Fund. Amounts designated as "--" are either $0 or have been rounded to $0. See Notes to Financial Statements. 112 STATEMENTS OF CHANGES IN NET ASSETS (continued) STI CLASSIC FUNDS For the Periods Indicated (Amounts in thousands)
Life Vision Target Life Vision Target Life Vision Target Date 2015 Fund Date 2025 Fund Date 2035 Fund ------------------ ------------------ ------------------ 10/12/05-* 10/21/05-* 11/02/05-* 03/31/06 03/31/06 03/31/06 ------------------ ------------------ ------------------ Operations: Net Investment Income..................................... $ 3 $ 3 $ 3 Capital Gain Received from Investments in Affiliated Investment Companies.................................... 3 2 4 Net Realized Gain on Investments Sold..................... -- -- 1 Net Change in Unrealized Appreciation on Investments...... 11 18 17 ---- ------ ---- Change in Net Assets from Operations...................... 17 23 25 ---- ------ ---- Dividends and Distributions to Shareholders: Net Investment Income: I Shares................................................ (2) (2) (3) ---- ------ ---- Total Dividends and Distributions......................... (2) (2) (3) ---- ------ ---- Change in Net Assets from Capital Transactions............ 255 1,089 568 ---- ------ ---- Change in Net Assets.................................... 270 1,110 590 ---- ------ ---- Net Assets: Beginning of Period....................................... -- -- -- ---- ------ ---- End of Period............................................. $270 $1,110 $590 ==== ====== ==== Accumulated Net Investment Income (Loss), End of Period..... $ 1 $ 1 $ -- ==== ====== ====
* Commencement of operations. Amounts designated as "--" are either $0 or have been rounded to $0. See Notes to Financial Statements. 113 STATEMENTS OF CHANGES IN NET ASSETS (continued) STI CLASSIC FUNDS For the Periods Indicated (Amounts in thousands)
Life Vision Target Life Vision Target Life Vision Target Date 2015 Fund Date 2025 Fund Date 2035 Fund ------------------ ------------------ ------------------ 10/12/05*- 10/21/05*- 11/02/05*- 03/31/06 03/31/06 03/31/06 ------------------ ------------------ ------------------ Capital Transactions I Shares Proceeds from Shares Issued............................... $255 $1,096 $634 Dividends Reinvested...................................... 2 2 3 Cost of Shares Redeemed................................... (2) (9) (69) ---- ------ ---- Change in Net Assets from I Shares Transactions....... $255 $1,089 $568 ---- ------ ---- Change in Net Assets from Capital Transactions.............. $255 $1,089 $568 ==== ====== ==== Share Transactions: I Shares Issued.................................................... 25 101 61 Reinvested................................................ -- -- -- Redeemed.................................................. -- (1) (7) ---- ------ ---- Change in I Shares Transactions....................... 25 100 54 ---- ------ ---- Change in Share Transactions................................ 25 100 54 ==== ====== ====
* Commencement of operations. Amounts designated as "--" are either $0 or have been rounded to $0. See Notes to Financial Statements. 114 FINANCIAL HIGHLIGHTS STI CLASSIC FUNDS Selected Data For a Share of Beneficial Interest Outstanding Throughout the Periods Indicated.
Net Realized and Dividends Distributions Net Asset Net Unrealized from from Total Value, Investment Gains Net Realized Dividends Beginning Income (Losses) on Total From Investment Capital and of Period (Loss) Investments Operations Income Gains Distributions --------- ---------- ----------- ---------- ---------- ------------- ------------- AGGRESSIVE GROWTH STOCK FUND I Shares Year Ended March 31, 2006 $ 9.89 $(0.07)(a) $ 2.42(a) $ 2.35 $ --* $ -- $ --* Period Ended March 31, 2005 10.00 (0.06)(a) (0.05)(a) (0.11) -- -- -- Period Ended May 31, 2004(b) 10.00 (0.02)(a) 0.02(a) -- -- -- -- A Shares Year Ended March 31, 2006 9.84 (0.10)(a) 2.42(a) 2.32 -- -- -- Period Ended March 31, 2005 9.99 (0.09)(a) (0.06)(a) (0.15) -- -- -- Period Ended May 31, 2004(b) 10.00 (0.03)(a) 0.02(a) (0.01) -- -- -- C Shares Year Ended March 31, 2006 9.78 (0.17)(a) 2.39(a) 2.22 -- -- -- Period Ended March 31, 2005 9.97 (0.15)(a) (0.04)(a) (0.19) -- -- -- Period Ended May 31, 2004(b) 10.00 (0.04)(a) 0.01(a) (0.03) -- -- -- CAPITAL APPRECIATION FUND I Shares Year Ended March 31, 2006 12.22 0.03(a) 0.86(a) 0.89 (0.02) (0.26) (0.28) Period Ended March 31, 2005 12.33 0.03(a) 0.07(a) 0.10 (0.03) (0.18) (0.21) Year Ended May 31, 2004 11.02 (0.03)(a) 1.34(a) 1.31 -- -- -- Year Ended May 31, 2003 12.24 (0.03)(a) (1.19)(a) (1.22) -- -- -- Year Ended May 31, 2002 13.89 -- (1.53) (1.53) -- (0.12) (0.12) Year Ended May 31, 2001 17.12 (0.05) (0.38) (0.43) -- (2.80) (2.80) A Shares Year Ended March 31, 2006 11.66 (0.03)(a) 0.83(a) 0.80 -- (0.26) (0.26) Period Ended March 31, 2005 11.82 (0.04)(a) 0.06(a) 0.02 -- (0.18) (0.18) Year Ended May 31, 2004 10.63 (0.10)(a) 1.29(a) 1.19 -- -- -- Year Ended May 31, 2003 11.89 (0.10)(a) (1.16)(a) (1.26) -- -- -- Year Ended May 31, 2002 13.59 (0.10) (1.48) (1.58) -- (0.12) (0.12) Year Ended May 31, 2001 16.91 (0.14) (0.38) (0.52) -- (2.80) (2.80) C Shares Year Ended March 31, 2006 11.04 (0.09)(a) 0.77(a) 0.68 -- (0.26) (0.26) Period Ended March 31, 2005 11.22 (0.07)(a) 0.07(a) -- -- (0.18) (0.18) Year Ended May 31, 2004 10.15 (0.15)(a) 1.22(a) 1.07 -- -- -- Year Ended May 31, 2003 11.40 (0.14)(a) (1.11)(a) (1.25) -- -- -- Year Ended May 31, 2002 13.09 (0.06) (1.51) (1.57) -- (0.12) (0.12) Year Ended May 31, 2001 16.45 (0.16) (0.40) (0.56) -- (2.80) (2.80) EMERGING GROWTH STOCK FUND I Shares Year Ended March 31, 2006 9.38 (0.09)(a) 3.54(a) 3.45 -- -- -- Period Ended March 31, 2005 9.60 (0.08)(a) (0.14)(a) (0.22) -- -- -- Period Ended May 31, 2004(b) 10.00 (0.03)(a) (0.37)(a) (0.40) -- -- -- Ratio of Ratio of Expenses to Ratio of Net Average Net Investment Net Assets Net Expenses Income (Excluding Asset to (Loss) to Waivers, Value, Net Assets, Average Average Reimbursements Portfolio End of Total End of Net Net and Expense Turnover Period Return+ Period (000) Assets++ Assets++ Offset)++ Rate ------ ------- ------------ -------- ----------- --------------- --------- AGGRESSIVE GROWTH STOCK FUND I Shares Year Ended March 31, 2006 $12.24 23.77% $ 254,412 1.19% (0.61)% 1.23% 30% Period Ended March 31, 2005 9.89 (1.10) 58,988 1.22 (0.79) 1.45 42 Period Ended May 31, 2004(b) 10.00 -- 20,501 1.22 (0.74) 1.61 2 A Shares Year Ended March 31, 2006 12.16 23.58 331 1.50 (0.94) 1.55 30 Period Ended March 31, 2005 9.84 (1.50) 140 1.58 (1.14) 5.56 42 Period Ended May 31, 2004(b) 9.99 (0.10) 49 1.65 (1.25) 11.29+++ 2 C Shares Year Ended March 31, 2006 12.00 22.70 5,223 2.17 (1.63) 2.27 30 Period Ended March 31, 2005 9.78 (1.91) 5,795 2.19 (1.75) 2.56 42 Period Ended May 31, 2004(b) 9.97 (0.30) 65 2.10 (1.69) 8.78+++ 2 CAPITAL APPRECIATION FUND I Shares Year Ended March 31, 2006 12.83 7.33 1,296,236 1.06 0.22 1.07 74 Period Ended March 31, 2005 12.22 0.76 1,493,213 1.19 0.31 1.21 72 Year Ended May 31, 2004 12.33 11.89 1,248,636 1.23 (0.25) 1.24 106 Year Ended May 31, 2003 11.02 (9.97) 1,090,549 1.22 (0.32) 1.24 69 Year Ended May 31, 2002 12.24 (11.06) 1,204,445 1.22 (0.54) 1.24 75 Year Ended May 31, 2001 13.89 (3.74) 1,177,933 1.21 (0.29) 1.24 75 A Shares Year Ended March 31, 2006 12.20 6.97 104,733 1.50 (0.22) 1.50 74 Period Ended March 31, 2005 11.66 0.15 126,895 1.86 (0.38) 1.90 72 Year Ended May 31, 2004 11.82 11.19 145,883 1.88 (0.91) 2.00 106 Year Ended May 31, 2003 10.63 (10.60) 141,488 1.88 (0.98) 2.00 69 Year Ended May 31, 2002 11.89 (11.68) 163,155 1.88 (1.20) 1.99 75 Year Ended May 31, 2001 13.59 (4.38) 202,548 1.86 (0.94) 1.99 75 C Shares Year Ended March 31, 2006 11.46 6.27 51,883 2.07 (0.79) 2.08 74 Period Ended March 31, 2005 11.04 (0.02) 75,786 2.21 (0.74) 2.24 72 Year Ended May 31, 2004 11.22 10.54 100,472 2.35 (1.38) 2.43 106 Year Ended May 31, 2003 10.15 (10.96) 94,505 2.35 (1.45) 2.45 69 Year Ended May 31, 2002 11.40 (12.05) 110,923 2.35 (1.67) 2.39 75 Year Ended May 31, 2001 13.09 (4.79) 112,497 2.33 (1.41) 2.39 75 EMERGING GROWTH STOCK FUND I Shares Year Ended March 31, 2006 12.83 36.78 48,369 1.20 (0.84) 1.24 107 Period Ended March 31, 2005 9.38 (2.29) 20,494 1.23 (1.03) 1.51 64 Period Ended May 31, 2004(b) 9.60 (4.00) 12,891 1.22 (1.04) 1.69 11
See Notes to Financial Highlights and Notes to Financial Statements. 115 FINANCIAL HIGHLIGHTS STI CLASSIC FUNDS Selected Data For a Share of Beneficial Interest Outstanding Throughout the Periods Indicated.
Net Realized and Dividends Distributions Net Asset Net Unrealized from from Total Value, Investment Gains Net Realized Dividends Beginning Income (Losses) on Total From Investment Capital and of Period (Loss) Investments Operations Income Gains Distributions --------- ---------- ----------- ---------- ---------- ------------- ------------- EMERGING GROWTH STOCK FUND A Shares Year Ended March 31, 2006 $ 9.34 $(0.13)(a) $ 3.53(a) $ 3.40 $ -- $ -- $ -- Period Ended March 31, 2005 9.59 (0.11)(a) (0.14)(a) (0.25) -- -- -- Period Ended May 31, 2004(b) 10.00 (0.04)(a) (0.37)(a) (0.41) -- -- -- C Shares Year Ended March 31, 2006 9.29 (0.20)(a) 3.50(a) 3.30 -- -- -- Period Ended March 31, 2005 9.58 (0.15)(a) (0.14)(a) (0.29) -- -- -- Period Ended May 31, 2004(c) 10.14 (0.05)(a) (0.51)(a) (0.56) -- -- -- INTERNATIONAL EQUITY FUND I Shares Year Ended March 31, 2006 11.77 0.16 2.72 2.88 (0.16) -- (0.16) Period Ended March 31, 2005 10.15 0.06 1.67 1.73 (0.11) -- (0.11) Year Ended May 31, 2004 8.00 0.10(a) 2.19(a) 2.29 (0.14) -- (0.14) Year Ended May 31, 2003 9.31 0.07 (1.32) (1.25) (0.06) -- (0.06) Year Ended May 31, 2002 10.19 0.19 (1.07) (0.88) -- -- -- Year Ended May 31, 2001 12.56 -- (1.22) (1.22) (0.04) (1.11) (1.15) A Shares Year Ended March 31, 2006 11.64 0.11 2.70 2.81 (0.11) -- (0.11) Period Ended March 31, 2005 10.03 0.01 1.67 1.68 (0.07) -- (0.07) Year Ended May 31, 2004 7.92 0.04(a) 2.17(a) 2.21 (0.10) -- (0.10) Year Ended May 31, 2003 9.21 0.04 (1.30) (1.26) (0.03) -- (0.03) Year Ended May 31, 2002 10.11 0.14 (1.04) (0.90) -- -- -- Year Ended May 31, 2001 12.47 (0.02) (1.23) (1.25) -- (1.11) (1.11) C Shares Year Ended March 31, 2006 11.01 --* 2.57 2.57 -- -- -- Period Ended March 31, 2005 9.49 (0.02)(a) 1.54(a) 1.52 --* -- --* Year Ended May 31, 2004 7.50 (0.01)(a) 2.06(a) 2.05 (0.06) -- (0.06) Year Ended May 31, 2003 8.75 (0.01) (1.24) (1.25) -- -- -- Year Ended May 31, 2002 9.68 0.04 (0.97) (0.93) -- -- -- Year Ended May 31, 2001 12.06 (0.16) (1.11) (1.27) -- (1.11) (1.11) INTERNATIONAL EQUITY INDEX FUND I Shares Year Ended March 31, 2006 12.83 0.25 2.94 3.19 (0.21) -- (0.21) Period Ended March 31, 2005 11.11 0.08(a) 1.88(a) 1.96 (0.24) -- (0.24) Year Ended May 31, 2004 8.39 0.14(a) 2.71(a) 2.85 (0.13) -- (0.13) Year Ended May 31, 2003 9.76 0.10(a) (1.43)(a) (1.33) (0.04) -- (0.04) Year Ended May 31, 2002 11.18 0.04 (1.43) (1.39) (0.03) -- (0.03) Year Ended May 31, 2001 13.97 0.06 (2.69) (2.63) (0.07) (0.09) (0.16) Ratio of Ratio of Expenses to Ratio of Net Average Net Investment Net Assets Net Expenses Income (Excluding Asset to (Loss) to Waivers, Value, Net Assets, Average Average Reimbursements Portfolio End of Total End of Net Net and Expense Turnover Period Return+ Period (000) Assets++ Assets++ Offset)++ Rate ------ ------- ------------ -------- ----------- --------------- --------- EMERGING GROWTH STOCK FUND A Shares Year Ended March 31, 2006 $12.74 36.30% $ 227 1.51% (1.16)% 1.55% 107% Period Ended March 31, 2005 9.34 (2.61) 86 1.59 (1.40) 6.91 64 Period Ended May 31, 2004(b) 9.59 (4.10) 39 1.65 (1.46) 13.36+++ 11 C Shares Year Ended March 31, 2006 12.59 35.52 107 2.17 (1.82) 2.21 107 Period Ended March 31, 2005 9.29 (3.03) 34 2.11 (1.92) 13.65 64 Period Ended May 31, 2004(c) 9.58 (5.52) 34 2.11 (1.95) 18.36+++ 11 INTERNATIONAL EQUITY FUND I Shares Year Ended March 31, 2006 14.49 24.47# 926,845 1.31 1.40 1.32 59 Period Ended March 31, 2005 11.77 17.09 480,731 1.38 0.85 1.38 39 Year Ended May 31, 2004 10.15 28.64 332,180 1.41 1.08 1.41 58 Year Ended May 31, 2003 8.00 (13.40) 191,041 1.46 0.83 1.46 89 Year Ended May 31, 2002 9.31 (8.64) 252,991 1.48 0.48 1.48 102 Year Ended May 31, 2001 10.19 (10.79) 208,120 1.45 0.50 1.45 68 A Shares Year Ended March 31, 2006 14.34 24.15# 11,805 1.62 1.14 1.63 59 Period Ended March 31, 2005 11.64 16.78 8,480 1.72 0.47 1.75 39 Year Ended May 31, 2004 10.03 29.97 7,056 1.83 0.46 2.06 58 Year Ended May 31, 2003 7.92 (13.70) 6,408 1.83 0.59 2.22 89 Year Ended May 31, 2002 9.21 (8.90) 5,272 1.83 (0.21) 2.08 102 Year Ended May 31, 2001 10.11 (11.13) 7,517 1.79 0.18 1.97 68 C Shares Year Ended March 31, 2006 13.58 23.34# 8,584 2.31 0.51 2.32 59 Period Ended March 31, 2005 11.01 16.03 8,248 2.40 (0.21) 2.45 39 Year Ended May 31, 2004 9.49 27.32 7,606 2.53 (0.15) 2.86 58 Year Ended May 31, 2003 7.50 (14.29) 5,678 2.53 (0.17) 3.03 89 Year Ended May 31, 2002 8.75 (9.61) 6,567 2.53 (0.73) 2.93 102 Year Ended May 31, 2001 9.68 (11.71) 7,765 2.48 (0.51) 2.57 68 INTERNATIONAL EQUITY INDEX FUND I Shares Year Ended March 31, 2006 15.81 25.06# 774,008 0.76 1.84 0.78 7 Period Ended March 31, 2005 12.83 17.68 517,993 0.97 0.81 1.06 21 Year Ended May 31, 2004 11.11 34.07 351,163 0.98 1.38 1.07 10 Year Ended May 31, 2003 8.39 (13.63) 248,770 1.03 1.26 1.12 25 Year Ended May 31, 2002 9.76 (12.43) 287,944 1.04 0.63 1.12 35 Year Ended May 31, 2001 11.18 (18.90) 236,862 1.06 0.40 1.09 13
See Notes to Financial Highlights and Notes to Financial Statements. 116 FINANCIAL HIGHLIGHTS STI CLASSIC FUNDS Selected Data For a Share of Beneficial Interest Outstanding Throughout the Periods Indicated.
Net Realized and Dividends Distributions Net Asset Net Unrealized from from Total Value, Investment Gains Net Realized Dividends Beginning Income (Losses) on Total From Investment Capital and of Period (Loss) Investments Operations Income Gains Distributions --------- ---------- ----------- ---------- ---------- ------------- ------------- INTERNATIONAL EQUITY INDEX FUND A Shares Year Ended March 31, 2006 $12.69 $ 0.25 $ 2.87 $ 3.12 $(0.15) $ -- $(0.15) Period Ended March 31, 2005 10.93 0.04(a) 1.84(a) 1.88 (0.12) -- (0.12) Year Ended May 31, 2004 8.28 0.07(a) 2.68(a) 2.75 (0.10) -- (0.10) Year Ended May 31, 2003 9.64 0.10(a) (1.45)(a) (1.35) (0.01) -- (0.01) Year Ended May 31, 2002 11.05 (0.02) (1.38) (1.40) (0.01) -- (0.01) Year Ended May 31, 2001 13.80 (0.01) (2.65) (2.66) -- (0.09) (0.09) C Shares Year Ended March 31, 2006 12.37 0.07 2.87 2.94 (0.02) -- (0.02) Period Ended March 31, 2005 10.69 (0.02)(a) 1.80(a) 1.78 (0.10) -- (0.10) Year Ended May 31, 2004 8.10 0.02(a) 2.62(a) 2.64 (0.05) -- (0.05) Year Ended May 31, 2003 9.48 0.01(a) (1.39)(a) (1.38) -- -- -- Year Ended May 31, 2002 10.93 (0.12) (1.33) (1.45) -- -- -- Year Ended May 31, 2001 13.74 (0.06) (2.66) (2.72) -- (0.09) (0.09) LARGE CAP RELATIVE VALUE FUND I Shares Year Ended March 31, 2006 16.07 0.18 1.83 2.01 (0.18) (0.70) (0.88) Period Ended March 31, 2005 14.72 0.17 1.74 1.91 (0.18) (0.38) (0.56) Year Ended May 31, 2004 12.21 0.14(a) 2.50(a) 2.64 (0.13) -- (0.13) Year Ended May 31, 2003 13.80 0.13 (1.60) (1.47) (0.12) -- (0.12) Year Ended May 31, 2002 15.05 0.09 (1.26) (1.17) (0.08) -- (0.08) Year Ended May 31, 2001 15.53 0.07 (0.04) 0.03 (0.08) (0.43) (0.51) A Shares Year Ended March 31, 2006 16.21 0.14 1.85 1.99 (0.14) (0.70) (0.84) Period Ended March 31, 2005 14.83 0.14 1.77 1.91 (0.15) (0.38) (0.53) Year Ended May 31, 2004 12.31 0.12(a) 2.51(a) 2.63 (0.11) -- (0.11) Year Ended May 31, 2003 13.91 0.11 (1.61) (1.50) (0.10) -- (0.10) Year Ended May 31, 2002 15.17 0.06 (1.27) (1.21) (0.05) -- (0.05) Year Ended May 31, 2001 15.65 0.04 (0.04) -- (0.05) (0.43) (0.48) C Shares Year Ended March 31, 2006 15.89 0.02 1.81 1.83 (0.02) (0.70) (0.72) Period Ended March 31, 2005 14.54 0.03 1.74 1.77 (0.04) (0.38) (0.42) Year Ended May 31, 2004 12.08 0.01(a) 2.47(a) 2.48 (0.02) -- (0.02) Year Ended May 31, 2003 13.66 -- (1.56) (1.56) (0.02) -- (0.02) Year Ended May 31, 2002 14.96 (0.02) (1.28) (1.30) -- -- -- Year Ended May 31, 2001 15.49 (0.05) (0.05) (0.10) -- (0.43) (0.43) Ratio of Ratio of Expenses to Ratio of Net Average Net Investment Net Assets Net Expenses Income (Excluding Asset to (Loss) to Waivers, Value, Net Assets, Average Average Reimbursements Portfolio End of Total End of Net Net and Expense Turnover Period Return+ Period (000) Assets++ Assets++ Offset)++ Rate ------ ------- ------------ -------- ----------- --------------- --------- INTERNATIONAL EQUITY INDEX FUND A Shares Year Ended March 31, 2006 $15.66 24.74%# $ 8,666 1.09% 1.58% 1.12% 7% Period Ended March 31, 2005 12.69 17.22 7,600 1.36 0.38 1.45 21 Year Ended May 31, 2004 10.93 33.26 15,037 1.49 0.73 1.61 10 Year Ended May 31, 2003 8.28 (14.03) 9,877 1.49 1.33 1.87 25 Year Ended May 31, 2002 9.64 (12.65) 3,222 1.49 (0.12) 1.90 35 Year Ended May 31, 2001 11.05 (19.31) 3,451 1.46 0.05 1.83 13 C Shares Year Ended March 31, 2006 15.29 23.79# 5,991 1.77 0.94 1.80 7 Period Ended March 31, 2005 12.37 16.62 5,763 1.99 (0.24) 2.12 21 Year Ended May 31, 2004 10.69 32.60 5,208 2.14 0.25 2.54 10 Year Ended May 31, 2003 8.10 (14.56) 3,093 2.14 0.18 2.82 25 Year Ended May 31, 2002 9.48 (13.27) 3,505 2.14 (0.68) 2.26 35 Year Ended May 31, 2001 10.93 (19.84) 4,731 2.10 (0.61) 2.15 13 LARGE CAP RELATIVE VALUE FUND I Shares Year Ended March 31, 2006 17.20 12.76 1,396,362 0.90 1.15 0.90 55 Period Ended March 31, 2005 16.07 12.98 1,010,717 0.96 1.23 0.96 44 Year Ended May 31, 2004 14.72 21.76 782,665 1.00 1.03 1.00 51 Year Ended May 31, 2003 12.21 (10.58) 598,862 0.99 1.05 0.99 52 Year Ended May 31, 2002 13.80 (7.80) 792,557 0.99 0.63 0.99 68 Year Ended May 31, 2001 15.05 0.11 867,664 0.99 0.49 0.99 73 A Shares Year Ended March 31, 2006 17.36 12.50 45,851 1.15 0.90 1.15 55 Period Ended March 31, 2005 16.21 12.86 44,743 1.18 0.97 1.23 44 Year Ended May 31, 2004 14.83 21.45 45,808 1.18 0.84 1.36 51 Year Ended May 31, 2003 12.31 (10.74) 36,305 1.18 0.88 1.38 52 Year Ended May 31, 2002 13.91 (7.97) 36,789 1.18 0.44 1.36 68 Year Ended May 31, 2001 15.17 (0.07) 40,174 1.18 0.30 1.35 73 C Shares Year Ended March 31, 2006 17.00 11.69 78,348 1.90 0.15 1.90 55 Period Ended March 31, 2005 15.89 12.12 88,741 1.93 0.23 1.99 44 Year Ended May 31, 2004 14.54 20.58 97,899 1.93 0.09 2.17 51 Year Ended May 31, 2003 12.08 (11.41) 74,261 1.93 0.11 2.20 52 Year Ended May 31, 2002 13.66 (8.69) 94,671 1.93 (0.29) 2.16 68 Year Ended May 31, 2001 14.96 (0.77) 78,376 1.93 (0.45) 2.14 73
See Notes to Financial Highlights and Notes to Financial Statements. 117 FINANCIAL HIGHLIGHTS STI CLASSIC FUNDS Selected Data For a Share of Beneficial Interest Outstanding Throughout the Periods Indicated.
Net Realized and Dividends Distributions Net Asset Net Unrealized from from Total Value, Investment Gains Net Realized Dividends Beginning Income (Losses) on Total From Investment Capital and of Period (Loss) Investments Operations Income Gains Distributions --------- ---------- ----------- ---------- ---------- ------------- ------------- LARGE CAP VALUE EQUITY FUND I Shares Year Ended March 31, 2006 $12.59 $ 0.23 $ 1.26 $ 1.49 $(0.23) $ -- $(0.23) Period Ended March 31, 2005 11.47 0.15 1.15 1.30 (0.18) -- (0.18) Year Ended May 31, 2004 9.73 0.15(a) 1.74(a) 1.89 (0.15) -- (0.15) Year Ended May 31, 2003 11.05 0.15 (1.33) (1.18) (0.14) -- (0.14) Year Ended May 31, 2002 11.61 0.12 (0.56) (0.44) (0.12) -- (0.12) Year Ended May 31, 2001 10.38 0.19 1.24 1.43 (0.20) -- (0.20) A Shares Year Ended March 31, 2006 12.56 0.19 1.26 1.45 (0.19) -- (0.19) Period Ended March 31, 2005 11.43 0.11 1.16 1.27 (0.14) -- (0.14) Year Ended May 31, 2004 9.70 0.11(a) 1.73(a) 1.84 (0.11) -- (0.11) Year Ended May 31, 2003 11.01 0.12 (1.32) (1.20) (0.11) -- (0.11) Year Ended May 31, 2002 11.58 0.08 (0.56) (0.48) (0.09) -- (0.09) Year Ended May 31, 2001 10.35 0.14 1.25 1.39 (0.16) -- (0.16) C Shares Year Ended March 31, 2006 12.43 0.09 1.25 1.34 (0.09) -- (0.09) Period Ended March 31, 2005 11.31 0.03 1.15 1.18 (0.06) -- (0.06) Year Ended May 31, 2004 9.60 0.03(a) 1.72(a) 1.75 (0.04) -- (0.04) Year Ended May 31, 2003 10.90 0.05 (1.31) (1.26) (0.04) -- (0.04) Year Ended May 31, 2002 11.46 -- (0.55) (0.55) (0.01) -- (0.01) Year Ended May 31, 2001 10.24 0.04 1.26 1.30 (0.08) -- (0.08) MID-CAP EQUITY FUND I Shares Year Ended March 31, 2006 12.03 0.07 2.26 2.33 (0.07) (0.62) (0.69) Period Ended March 31, 2005 10.32 0.07 1.70 1.77 (0.06) -- (0.06) Year Ended May 31, 2004 8.74 0.06(a) 1.57(a) 1.63 (0.05) -- (0.05) Year Ended May 31, 2003 9.79 (0.03)(a) (1.02)(a)** (1.05)** -- -- -- Year Ended May 31, 2002 10.95 0.01 (1.17) (1.16) -- -- -- Year Ended May 31, 2001 14.10 (0.03) (0.61) (0.64) -- (2.51) (2.51) A Shares Year Ended March 31, 2006 11.57 0.03 2.17 2.20 (0.03) (0.62) (0.65) Period Ended March 31, 2005 9.92 0.02 1.64 1.66 (0.01) -- (0.01) Year Ended May 31, 2004 8.42 0.02(a) 1.51(a) 1.53 (0.03) -- (0.03) Year Ended May 31, 2003 9.47 (0.05)(a) (1.00)(a) (1.05) -- -- -- Year Ended May 31, 2002 10.64 (0.03) (1.14) (1.17) -- -- -- Year Ended May 31, 2001 13.82 (0.05) (0.62) (0.67) -- (2.51) (2.51) Ratio of Ratio of Expenses to Ratio of Net Average Net Investment Net Assets Net Expenses Income (Excluding Asset to (Loss) to Waivers, Value, Net Assets, Average Average Reimbursements Portfolio End of Total End of Net Net and Expense Turnover Period Return+ Period (000) Assets++ Assets++ Offset)++ Rate ------ ------- ------------ -------- ----------- --------------- --------- LARGE CAP VALUE EQUITY FUND I Shares Year Ended March 31, 2006 $13.85 11.93% $ 766,547 0.85% 1.74% 0.86% 104% Period Ended March 31, 2005 12.59 11.42 792,677 0.86 1.52 0.86 87 Year Ended May 31, 2004 11.47 19.58 715,928 0.90 1.40 0.90 67 Year Ended May 31, 2003 9.73 (10.54) 681,899 0.89 1.68 0.89 46 Year Ended May 31, 2002 11.05 (3.68) 686,014 0.90 1.13 0.90 60 Year Ended May 31, 2001 11.61 14.09 704,842 0.90 1.70 0.90 77 A Shares Year Ended March 31, 2006 13.82 11.61 67,845 1.16 1.43 1.17 104 Period Ended March 31, 2005 12.56 11.18 75,462 1.20 1.18 1.20 87 Year Ended May 31, 2004 11.43 19.10 73,257 1.28 1.01 1.31 67 Year Ended May 31, 2003 9.70 (10.85) 65,294 1.28 1.29 1.32 46 Year Ended May 31, 2002 11.01 (4.14) 75,697 1.28 0.74 1.31 60 Year Ended May 31, 2001 11.58 13.63 85,584 1.28 1.31 1.31 77 C Shares Year Ended March 31, 2006 13.68 10.86 44,257 1.85 0.74 1.86 104 Period Ended March 31, 2005 12.43 10.46 53,147 1.88 0.49 1.89 87 Year Ended May 31, 2004 11.31 18.27 57,403 2.02 0.27 2.07 67 Year Ended May 31, 2003 9.60 (11.56) 49,007 2.02 0.55 2.10 46 Year Ended May 31, 2002 10.90 (4.82) 59,392 2.02 -- 2.05 60 Year Ended May 31, 2001 11.46 12.85 65,895 2.01 0.59 2.05 77 MID-CAP EQUITY FUND I Shares Year Ended March 31, 2006 13.67 19.68 410,459 1.12 0.63 1.13 138 Period Ended March 31, 2005 12.03 17.17 214,660 1.20 0.64 1.22 68 Year Ended May 31, 2004 10.32 18.70 177,128 1.23 0.64 1.26 126 Year Ended May 31, 2003 8.74 (10.73) 118,092 1.22 (0.31) 1.25 144 Year Ended May 31, 2002 9.79 (10.59) 171,813 1.22 (0.18) 1.24 87 Year Ended May 31, 2001 10.95 (6.92) 156,111 1.21 (0.24) 1.25 100 A Shares Year Ended March 31, 2006 13.12 19.32 16,009 1.47 0.25 1.48 138 Period Ended March 31, 2005 11.57 16.79 14,556 1.63 0.21 1.68 68 Year Ended May 31, 2004 9.92 18.16 17,125 1.68 0.20 1.87 126 Year Ended May 31, 2003 8.42 (11.09) 12,137 1.68 (0.68) 1.92 144 Year Ended May 31, 2002 9.47 (11.00) 10,766 1.68 (0.63) 1.89 87 Year Ended May 31, 2001 10.64 (7.34) 12,316 1.66 (0.69) 1.86 100
See Notes to Financial Highlights and Notes to Financial Statements. 118 FINANCIAL HIGHLIGHTS STI CLASSIC FUNDS Selected Data For a Share of Beneficial Interest Outstanding Throughout the Periods Indicated.
Net Realized and Dividends Distributions Net Asset Net Unrealized from from Total Value, Investment Gains Net Realized Dividends Beginning Income (Losses) on Total From Investment Capital and of Period (Loss) Investments Operations Income Gains Distributions --------- ---------- ----------- ---------- ---------- ------------- ------------- MID-CAP EQUITY FUND C Shares Year Ended March 31, 2006 $10.81 $ -- $ 1.96 $ 1.96 $ -- $(0.62) $(0.62) Period Ended March 31, 2005 9.30 0.01 1.50 1.51 -- -- -- Year Ended May 31, 2004 7.92 (0.04)(a) 1.43(a) 1.39 (0.01) -- (0.01) Year Ended May 31, 2003 8.97 (0.10)(a) (0.95)(a) (1.05) -- -- -- Year Ended May 31, 2002 10.14 0.02 (1.19) (1.17) -- -- -- Year Ended May 31, 2001 13.35 (0.07) (0.63) (0.70) -- (2.51) (2.51) MID-CAP VALUE EQUITY FUND I Shares Year Ended March 31, 2006 12.27 0.13 2.15 2.28 (0.13) (1.28) (1.41) Period Ended March 31, 2005 10.95 0.11 1.33 1.44 (0.12) -- (0.12) Year Ended May 31, 2004 8.62 0.05(a) 2.33(a) 2.38 (0.05) -- (0.05) Year Ended May 31, 2003 10.95 0.05 (2.16) (2.11) (0.04) (0.18) (0.22) Period Ended May 31, 2002(d) 10.00 0.02 0.94 0.96 (0.01) -- (0.01) A Shares Year Ended March 31, 2006 12.24 0.09 2.14 2.23 (0.09) (1.28) (1.37) Period Ended March 31, 2005 10.94 0.08 1.31 1.39 (0.09) -- (0.09) Period Ended May 31, 2004(e) 9.39 0.02(a) 1.55(a) 1.57 (0.02) -- (0.02) C Shares Year Ended March 31, 2006 12.21 0.02 2.13 2.15 (0.02) (1.28) (1.30) Period Ended March 31, 2005 10.90 0.04 1.32 1.36 (0.05) -- (0.05) Year Ended May 31, 2004 8.58 (0.01)(a) 2.33(a) 2.32 --* -- --* Year Ended May 31, 2003 10.92 0.01 (2.16) (2.15) (0.01) (0.18) (0.19) Period Ended May 31, 2002(d) 10.00 (0.01) 0.93 0.92 -- -- -- QUALITY GROWTH STOCK FUND I Shares Year Ended March 31, 2006 24.14 -- 1.82 1.82 (0.13) -- (0.13) Period Ended March 31, 2005 23.31 0.10(a) 0.77(a) 0.87 (0.04) -- (0.04) Year Ended May 31, 2004 20.78 (0.06)(a) 2.59(a) 2.53 -- -- -- Year Ended May 31, 2003 23.25 --(a) (2.47)(a) (2.47) -- -- -- Year Ended May 31, 2002 26.74 (0.02) (3.47) (3.49) -- -- -- Year Ended May 31, 2001 33.10 (0.03) (6.33) (6.36) -- -- -- A Shares Year Ended March 31, 2006 24.02 (0.05) 1.78 1.73 (0.08) -- (0.08) Period Ended March 31, 2005 23.26 0.03(a) 0.77(a) 0.80 (0.04) -- (0.04) Period Ended May 31, 2004(f) 22.32 (0.10)(a) 1.04(a) 0.94 -- -- -- C Shares Year Ended March 31, 2006 22.67 (0.11) 1.57 1.46 (0.02) -- (0.02) Period Ended March 31, 2005 22.04 (0.09)(a) 0.72(a) 0.63 -- -- -- Year Ended May 31, 2004 19.85 (0.29)(a) 2.48(a) 2.19 -- -- -- Year Ended May 31, 2003 22.45 (0.20)(a) (2.40)(a) (2.60) -- -- -- Year Ended May 31, 2002 26.10 (0.41) (3.24) (3.65) -- -- -- Year Ended May 31, 2001 32.65 (0.36) (6.19) (6.55) -- -- -- Ratio of Ratio of Expenses to Ratio of Net Average Net Investment Net Assets Net Expenses Income (Excluding Asset to (Loss) to Waivers, Value, Net Assets, Average Average Reimbursements Portfolio End of Total End of Net Net and Expense Turnover Period Return+ Period (000) Assets++ Assets++ Offset)++ Rate ------ ------- ------------ -------- ----------- --------------- --------- MID-CAP EQUITY FUND C Shares Year Ended March 31, 2006 $12.15 18.44% $ 13,499 2.13% (0.42)% 2.14% 138% Period Ended March 31, 2005 10.81 16.24 14,557 2.21 (0.37) 2.28 68 Year Ended May 31, 2004 9.30 17.51 15,998 2.28 (0.41) 2.54 126 Year Ended May 31, 2003 7.92 (11.71) 12,013 2.28 (1.33) 2.60 144 Year Ended May 31, 2002 8.97 (11.54) 13,937 2.28 (1.23) 2.50 87 Year Ended May 31, 2001 10.14 (7.88) 12,910 2.26 (1.29) 2.46 100 MID-CAP VALUE EQUITY FUND I Shares Year Ended March 31, 2006 13.14 19.49 243,534 1.13 1.03 1.16 169 Period Ended March 31, 2005 12.27 13.25 209,088 1.22 1.19 1.32 117 Year Ended May 31, 2004 10.95 27.71 147,185 1.26 0.53 1.36 95 Year Ended May 31, 2003 8.62 (19.05) 99,854 1.25 0.63 1.35 71 Period Ended May 31, 2002(d) 10.95 9.65 174,859 1.27 0.29 1.37 30 A Shares Year Ended March 31, 2006 13.10 19.09 2,435 1.46 0.72 1.49 169 Period Ended March 31, 2005 12.24 12.73 1,724 1.62 0.74 1.93 117 Period Ended May 31, 2004(e) 10.94 16.73 610 1.60 0.24 4.23 95 C Shares Year Ended March 31, 2006 13.06 18.47 6,366 2.03 0.13 2.17 169 Period Ended March 31, 2005 12.21 12.47 6,888 1.91 0.54 2.39 117 Year Ended May 31, 2004 10.90 27.06 7,880 1.90 (0.11) 2.74 95 Year Ended May 31, 2003 8.58 (19.58) 5,744 1.90 0.03 2.85 71 Period Ended May 31, 2002(d) 10.92 9.24 5,465 1.89 (0.31) 2.72 30 QUALITY GROWTH STOCK FUND I Shares Year Ended March 31, 2006 25.83 7.54 74,481 1.07 0.21 1.08 82 Period Ended March 31, 2005 24.14 3.74 98,982 1.22 0.52 1.25 51 Year Ended May 31, 2004 23.31 12.18 144,732 1.25 (0.28) 1.25 49 Year Ended May 31, 2003 20.78 (10.62) 198,429 1.24 (0.01) 1.24 58 Year Ended May 31, 2002 23.25 (13.05) 244,707 1.24 (0.10) 1.24 69 Year Ended May 31, 2001 26.74 (19.21) 460,311 1.24 (0.10) 1.25 103 A Shares Year Ended March 31, 2006 25.67 7.21 468 1.39 (0.11) 1.41 82 Period Ended March 31, 2005 24.02 3.42 667 1.62 0.13 2.00 51 Period Ended May 31, 2004(f) 23.26 4.21 365 1.65 (0.71) 4.48+++ 49 C Shares Year Ended March 31, 2006 24.11 6.46 48,412 2.07 (0.80) 2.08 82 Period Ended March 31, 2005 22.67 2.86 67,950 2.23 (0.47) 2.28 51 Year Ended May 31, 2004 22.04 11.03 92,966 2.31 (1.34) 2.41 49 Year Ended May 31, 2003 19.85 (11.58) 110,085 2.31 (1.07) 2.40 58 Year Ended May 31, 2002 22.45 (13.98) 167,973 2.31 (1.16) 2.36 69 Year Ended May 31, 2001 26.10 (20.06) 233,496 2.30 (1.15) 2.34 103
See Notes to Financial Highlights and Notes to Financial Statements. 119 FINANCIAL HIGHLIGHTS STI CLASSIC FUNDS Selected Data For a Share of Beneficial Interest Outstanding Throughout the Periods Indicated.
Net Realized and Dividends Distributions Net Asset Net Unrealized from from Total Value, Investment Gains Net Realized Dividends Beginning Income (Losses) on Total From Investment Capital and of Period (Loss) Investments Operations Income Gains Distributions --------- ---------- ----------- ---------- ---------- ------------- ------------- SMALL CAP GROWTH STOCK FUND I Shares Year Ended March 31, 2006 $19.99 $(0.14)(a) $ 5.46(a) $ 5.32 $ -- $(1.66) $(1.66) Period Ended March 31, 2005 20.25 (0.08)(a) 2.27(a) 2.19 -- (2.45) (2.45) Year Ended May 31, 2004 15.19 (0.16)(a) 5.22(a) 5.06 -- -- -- Year Ended May 31, 2003 17.28 (0.12)(a) (1.72)(a) (1.84) -- (0.25) (0.25) Year Ended May 31, 2002 18.37 -- (1.02) (1.02) -- (0.07) (0.07) Year Ended May 31, 2001 18.30 (0.18) 1.71 1.53 -- (1.46) (1.46) A Shares Year Ended March 31, 2006 19.56 (0.21)(a) 5.33(a) 5.12 -- (1.66) (1.66) Period Ended March 31, 2005 19.92 (0.14)(a) 2.23(a) 2.09 -- (2.45) (2.45) Year Ended May 31, 2004 15.00 (0.22)(a) 5.14(a) 4.92 -- -- -- Year Ended May 31, 2003 17.12 (0.17)(a) (1.70)(a) (1.87) -- (0.25) (0.25) Year Ended May 31, 2002 18.26 (0.17) (0.90) (1.07) -- (0.07) (0.07) Year Ended May 31, 2001 18.27 (0.59) 2.04 1.45 -- (1.46) (1.46) C Shares Year Ended March 31, 2006 18.51 (0.33)(a) 5.01(a) 4.68 -- (1.66) (1.66) Period Ended March 31, 2005 19.06 (0.23)(a) 2.13(a) 1.90 -- (2.45) (2.45) Year Ended May 31, 2004 14.45 (0.34)(a) 4.95(a) 4.61 -- -- -- Year Ended May 31, 2003 16.62 (0.26)(a) (1.66)(a) (1.92) -- (0.25) (0.25) Year Ended May 31, 2002 17.85 (0.02) (1.14) (1.16) -- (0.07) (0.07) Year Ended May 31, 2001 18.00 (0.25) 1.56 1.31 -- (1.46) (1.46) SMALL CAP VALUE EQUITY FUND I Shares Year Ended March 31, 2006 19.86 0.10 5.39 5.49 (0.10) (4.32) (4.42) Period Ended March 31, 2005 18.26 0.04(a) 3.15(a) 3.19 (0.06) (1.53) (1.59) Year Ended May 31, 2004 13.73 0.06(a) 4.53(a) 4.59 (0.06) -- (0.06) Year Ended May 31, 2003 14.54 0.08 (0.82) (0.74) (0.07) -- (0.07) Year Ended May 31, 2002 12.21 0.08 2.35 2.43 (0.10) -- (0.10) Year Ended May 31, 2001 9.13 0.17 3.07 3.24 (0.16) -- (0.16) A Shares Year Ended March 31, 2006 19.75 0.06 5.36 5.42 (0.06) (4.32) (4.38) Period Ended March 31, 2005 18.18 (0.01)(a) 3.13(a) 3.12 (0.02) (1.53) (1.55) Period Ended May 31, 2004(g) 15.75 0.03(a) 2.41(a) 2.44 (0.01) -- (0.01) C Shares Year Ended March 31, 2006 19.45 0.06 5.26 5.32 (0.06) (4.32) (4.38) Period Ended March 31, 2005 17.91 (0.01)(a) 3.09(a) 3.08 (0.01) (1.53) (1.54) Year Ended May 31, 2004 13.55 (0.10)(a) 4.46(a) 4.36 --* -- --* Year Ended May 31, 2003 14.43 (0.04) (0.84) (0.88) -- -- -- Year Ended May 31, 2002 12.15 -- 2.29 2.29 (0.01) -- (0.01) Year Ended May 31, 2001 9.10 0.07 3.04 3.11 (0.06) -- (0.06) Ratio of Ratio of Expenses to Ratio of Net Average Net Investment Net Assets Net Expenses Income (Excluding Asset to (Loss) to Waivers, Value, Net Assets, Average Average Reimbursements Portfolio End of Total End of Net Net and Expense Turnover Period Return+ Period (000) Assets++ Assets++ Offset)++ Rate ------ ------- ------------ -------- ----------- --------------- --------- SMALL CAP GROWTH STOCK FUND I Shares Year Ended March 31, 2006 $23.65 27.55% $1,641,681 1.17% (0.66)% 1.18% 98% Period Ended March 31, 2005 19.99 10.60 940,775 1.22 (0.46) 1.22 70 Year Ended May 31, 2004 20.25 33.31 789,650 1.25 (0.83) 1.25 107 Year Ended May 31, 2003 15.19 (10.50) 567,714 1.24 (0.87) 1.24 96 Year Ended May 31, 2002 17.28 (5.55) 593,211 1.25 (1.01) 1.25 100 Year Ended May 31, 2001 18.37 8.33 508,857 1.24 (0.95) 1.25 112 A Shares Year Ended March 31, 2006 23.02 27.13### 59,896 1.51 (1.00) 1.54 98 Period Ended March 31, 2005 19.56 10.26 38,954 1.61 (0.84) 1.73 70 Year Ended May 31, 2004 19.92 32.80 40,590 1.61 (1.20) 1.88 107 Year Ended May 31, 2003 15.00 (10.77) 21,887 1.61 (1.23) 1.93 96 Year Ended May 31, 2002 17.12 (5.86) 24,978 1.61 (1.37) 1.88 100 Year Ended May 31, 2001 18.26 7.89 28,933 1.60 (1.33) 1.87 112 C Shares Year Ended March 31, 2006 21.53 26.27### 36,242 2.18 (1.67) 2.18 98 Period Ended March 31, 2005 18.51 9.71 35,322 2.22 (1.46) 2.24 70 Year Ended May 31, 2004 19.06 31.90 40,354 2.31 (1.90) 2.40 107 Year Ended May 31, 2003 14.45 (11.40) 25,601 2.31 (1.93) 2.46 96 Year Ended May 31, 2002 16.62 (6.50) 29,457 2.31 (2.07) 2.41 100 Year Ended May 31, 2001 17.85 7.19 26,941 2.29 (2.01) 2.39 112 SMALL CAP VALUE EQUITY FUND I Shares Year Ended March 31, 2006 20.93 30.70 762,709 1.20 0.48 1.20 58 Period Ended March 31, 2005 19.86 17.57 726,904 1.21 0.22 1.21 17 Year Ended May 31, 2004 18.26 33.56 682,567 1.25 0.38 1.25 44 Year Ended May 31, 2003 13.73 (5.09) 518,468 1.24 0.64 1.24 29 Year Ended May 31, 2002 14.54 20.06 614,199 1.25 0.67 1.25 29 Year Ended May 31, 2001 12.21 35.90 401,900 1.25 1.72 1.25 86 A Shares Year Ended March 31, 2006 20.79 30.44 5,317 1.45 0.22 1.48 58 Period Ended March 31, 2005 19.75 17.26 4,616 1.47 (0.05) 1.61 17 Period Ended May 31, 2004(g) 18.18 15.51 4,088 1.55 0.30 2.15 44 C Shares Year Ended March 31, 2006 20.39 30.41 45,388 1.45 0.23 1.70 58 Period Ended March 31, 2005 19.45 17.27 43,664 1.50 (0.07) 2.25 17 Year Ended May 31, 2004 17.91 32.20 46,192 2.26 (0.64) 2.45 44 Year Ended May 31, 2003 13.55 (6.10) 34,064 2.31 (0.40) 2.50 29 Year Ended May 31, 2002 14.43 18.92 32,708 2.31 (0.38) 2.52 29 Year Ended May 31, 2001 12.15 34.30 11,167 2.30 0.63 2.66 86
See Notes to Financial Highlights and Notes to Financial Statements. 120 FINANCIAL HIGHLIGHTS STI CLASSIC FUNDS Selected Data For a Share of Beneficial Interest Outstanding Throughout the Periods Indicated.
Net Realized and Dividends Distributions Net Asset Net Unrealized from from Total Value, Investment Gains Net Realized Dividends Beginning Income (Losses) on Total From Investment Capital and of Period (Loss) Investments Operations Income Gains Distributions --------- ---------- ----------- ---------- ---------- ------------- ------------- STRATEGIC QUANTITATIVE EQUITY FUND I Shares Year Ended March 31, 2006 $13.25 $ 0.01(a) $ 1.55(a) $ 1.56 $ --* $(1.06) $(1.06) Period Ended March 31, 2005 12.08 (0.02)(a) 1.91(a) 1.89 -- (0.72) (0.72) Period Ended May 31, 2004(h) 10.00 (0.02)(a) 2.35(a) 2.33 -- (0.25) (0.25) A Shares Year Ended March 31, 2006 13.18 (0.02)(a) 1.55(a) 1.53 -- (1.06) (1.06) Period Ended March 31, 2005 12.05 (0.05)(a) 1.90(a) 1.85 -- (0.72) (0.72) Period Ended May 31, 2004(i) 11.35 (0.05)(a) 1.00(a) 0.95 -- (0.25) (0.25) C Shares Year Ended March 31, 2006 13.03 (0.13)(a) 1.53(a) 1.40 -- (1.06) (1.06) Period Ended March 31, 2005 12.00 (0.13)(a) 1.88(a) 1.75 -- (0.72) (0.72) Period Ended May 31, 2004(j) 11.64 (0.11)(a) 0.72(a) 0.61 -- (0.25) (0.25) BALANCED FUND I Shares Year Ended March 31, 2006 12.29 0.24 0.37 0.61 (0.23) (0.79) (1.02) Period Ended March 31, 2005*** 12.23 0.18 0.21 0.39 (0.21) (0.12) (0.33) Year Ended May 31, 2004 11.92 0.18(a) 0.32(a) 0.50 (0.19) -- (0.19) Year Ended May 31, 2003 12.18 0.20 (0.23) (0.03) (0.23) -- (0.23) Year Ended May 31, 2002 13.18 0.23 (0.65) (0.42) (0.24) (0.34) (0.58) Year Ended May 31, 2001 13.37 0.30 0.12 0.42 (0.31) (0.30) (0.61) A Shares Year Ended March 31, 2006 12.35 0.20 0.37 0.57 (0.19) (0.79) (0.98) Period Ended March 31, 2005*** 12.28 0.15 0.22 0.37 (0.18) (0.12) (0.30) Year Ended May 31, 2004 11.97 0.14(a) 0.33(a) 0.47 (0.16) -- (0.16) Year Ended May 31, 2003 12.24 0.16 (0.24) (0.08) (0.19) -- (0.19) Year Ended May 31, 2002 13.24 0.18 (0.64) (0.46) (0.20) (0.34) (0.54) Year Ended May 31, 2001 13.43 0.27 0.11 0.38 (0.27) (0.30) (0.57) C Shares Year Ended March 31, 2006 12.20 0.11 0.36 0.47 (0.10) (0.79) (0.89) Period Ended March 31, 2005*** 12.12 0.05 0.23 0.28 (0.08) (0.12) (0.20) Year Ended May 31, 2004 11.82 0.05(a) 0.32(a) 0.37 (0.07) -- (0.07) Year Ended May 31, 2003 12.07 0.08 (0.22) (0.14) (0.11) -- (0.11) Year Ended May 31, 2002 13.07 0.10 (0.65) (0.55) (0.11) (0.34) (0.45) Year Ended May 31, 2001 13.27 0.16 0.11 0.27 (0.17) (0.30) (0.47) LIFE VISION AGGRESSIVE GROWTH FUND(K) I Shares Year Ended March 31, 2006 11.07 0.14 1.38 1.52 (0.14) (0.13) (0.27) Period Ended March 31, 2005 10.25 0.12 0.82 0.94 (0.12) -- (0.12) Year Ended May 31, 2004 8.55 0.04(a) 1.70(a) 1.74 (0.04)**** -- (0.04)**** Year Ended May 31, 2003 9.57 0.03 (1.02) (0.99) (0.03) -- (0.03) Year Ended May 31, 2002 10.31 0.02 (0.74) (0.72) (0.02) -- (0.02) Year Ended May 31, 2001 11.61 0.11 0.23 0.34 (0.12) (1.52) (1.64) Ratio of Ratio of Expenses to Ratio of Net Average Net Investment Net Assets Net Expenses Income (Excluding Asset to (Loss) to Waivers, Value, Net Assets, Average Average Reimbursements Portfolio End of Total End of Net Net and Expense Turnover Period Return+ Period (000) Assets++ Assets++ Offset)++ Rate ------ ------- ------------ -------- ----------- --------------- --------- STRATEGIC QUANTITATIVE EQUITY FU I Shares Year Ended March 31, 2006 $13.75 12.17% $ 284,727 0.99% 0.07% 1.02% 432% Period Ended March 31, 2005 13.25 15.84 93,204 1.11 (0.19) 1.26 346 Period Ended May 31, 2004(h) 12.08 23.43 66,812 1.13 (0.22) 1.33 344 A Shares Year Ended March 31, 2006 13.65 11.90 1,181 1.23 (0.17) 1.27 432 Period Ended March 31, 2005 13.18 15.54 407 1.39 (0.47) 2.37 346 Period Ended May 31, 2004(i) 12.05 8.48 155 1.55 (0.67) 10.70+++ 344 C Shares Year Ended March 31, 2006 13.37 11.11 1,518 2.00 (0.97) 2.05 432 Period Ended March 31, 2005 13.03 14.76 1,458 2.13 (1.22) 2.39 346 Period Ended May 31, 2004(j) 12.00 5.34 1,573 2.30 (1.42) 3.09 344 BALANCED FUND I Shares Year Ended March 31, 2006 11.88 5.10## 69,616 0.97 1.73 0.99 133 Period Ended March 31, 2005*** 12.29 3.14 195,680 0.99 1.68 1.02 140 Year Ended May 31, 2004 12.23 4.24 244,042 1.02 1.50 1.05 116 Year Ended May 31, 2003 11.92 (0.14) 228,475 1.02 1.74 1.05 102 Year Ended May 31, 2002 12.18 (3.29) 241,604 1.02 1.78 1.05 95 Year Ended May 31, 2001 13.18 3.24 209,316 1.01 2.24 1.05 99 A Shares Year Ended March 31, 2006 11.94 4.77## 5,811 1.25 1.44 1.28 133 Period Ended March 31, 2005*** 12.35 2.94 8,693 1.28 1.38 1.34 140 Year Ended May 31, 2004 12.28 3.91 8,902 1.34 1.18 1.54 116 Year Ended May 31, 2003 11.97 (0.54) 8,285 1.33 1.43 1.55 102 Year Ended May 31, 2002 12.24 (3.57) 9,020 1.33 1.46 1.55 95 Year Ended May 31, 2001 13.24 2.91 7,834 1.32 1.93 1.54 99 C Shares Year Ended March 31, 2006 11.78 3.97 30,733 1.97 0.72 2.00 133 Period Ended March 31, 2005*** 12.20 2.29 46,026 2.00 0.66 2.05 140 Year Ended May 31, 2004 12.12 3.12 65,435 2.09 0.42 2.18 116 Year Ended May 31, 2003 11.82 (1.15) 67,567 2.09 0.67 2.18 102 Year Ended May 31, 2002 12.07 (4.33) 74,880 2.09 0.71 2.16 95 Year Ended May 31, 2001 13.07 2.11 67,824 2.07 1.18 2.15 99 LIFE VISION AGGRESSIVE GROWTH FU I Shares Year Ended March 31, 2006 12.32 13.90 52,765 0.21 1.30 0.26 31 Period Ended March 31, 2005 11.07 9.15 43,283 0.21 1.32 0.34 29 Year Ended May 31, 2004 10.25 20.34 38,468 0.25 0.39 0.39 44 Year Ended May 31, 2003 8.55 (10.36) 28,681 0.25 0.33 0.40 50 Year Ended May 31, 2002 9.57 (6.96) 34,398 0.25 0.17 0.41 101 Year Ended May 31, 2001 10.31 3.07 23,936 0.25 1.05 0.43 202
See Notes to Financial Highlights and Notes to Financial Statements. 121 FINANCIAL HIGHLIGHTS STI CLASSIC FUNDS Selected Data For a Share of Beneficial Interest Outstanding Throughout the Periods Indicated.
Net Realized and Dividends Distributions Net Asset Net Unrealized from from Total Value, Investment Gains Net Realized Dividends Beginning Income (Losses) on Total From Investment Capital and of Period (Loss) Investments Operations Income Gains Distributions --------- ---------- ----------- ---------- ---------- ------------- ------------- LIFE VISION AGGRESSIVE GROWTH FUND(K) A Shares Year Ended March 31, 2006 $11.05 $ 0.11 $ 1.37 $ 1.48 $(0.11) $(0.13) $(0.24) Period Ended March 31, 2005 10.23 0.09 0.82 0.91 (0.09) -- (0.09) Period Ended May 31, 2004(l) 9.46 (0.01)(a) 0.81(a) 0.80 (0.03) -- (0.03) C Shares Period Ended March 31, 2006(m) 11.07 0.08 1.39 1.47 (0.08) (0.13) (0.21) B Shares Year Ended March 31, 2006 10.98 0.09 1.34 1.43 (0.09) (0.13) (0.22) Period Ended March 31, 2005 10.18 0.06 0.80 0.86 (0.06) -- (0.06) Year Ended May 31, 2004 8.53 (0.04)(a) 1.70(a) 1.66 (0.01) -- (0.01) Period Ended May 31, 2003(n) 7.23 (0.01) 1.31 1.30 -- -- -- LIFE VISION CONSERVATIVE FUND(K) I Shares Year Ended March 31, 2006 11.09 0.37 0.17 0.54 (0.36) (0.06) (0.42) Period Ended March 31, 2005 10.87 0.28 0.28 0.56 (0.30) (0.04) (0.34) Period Ended May 31, 2004(o) 10.71 0.15(a) 0.14(a) 0.29 (0.13) -- (0.13) A Shares Year Ended March 31, 2006 11.09 0.33 0.17 0.50 (0.32) (0.06) (0.38) Period Ended March 31, 2005 10.86 0.24 0.29 0.53 (0.26) (0.04) (0.30) Period Ended May 31, 2004(p) 10.68 0.12(a) 0.18(a) 0.30 (0.12) -- (0.12) C Shares Period Ended March 31, 2006(m) 11.08 0.29 0.17 0.46 (0.28) (0.06) (0.34) B Shares Year Ended March 31, 2006 11.09 0.28 0.18 0.46 (0.27) (0.06) (0.33) Period Ended March 31, 2005 10.86 0.20 0.29 0.49 (0.22) (0.04) (0.26) Year Ended May 31, 2004 10.43 0.17(a) 0.39(a) 0.56 (0.13) -- (0.13) Period Ended May 31, 2003(n) 10.00 0.01 0.42 0.43 -- -- -- LIFE VISION GROWTH AND INCOME FUND(K) I Shares Year Ended March 31, 2006 11.41 0.23 1.02 1.25 (0.23) -- (0.23) Period Ended March 31, 2005 10.76 0.16 0.67 0.83 (0.18) -- (0.18) Year Ended May 31, 2004 9.33 0.14(a) 1.43(a) 1.57 (0.14) -- (0.14) Year Ended May 31, 2003 9.98 0.13 (0.65) (0.52) (0.13) -- (0.13) Year Ended May 31, 2002 10.42 0.12 (0.43) (0.31) (0.13) -- (0.13) Year Ended May 31, 2001 10.50 0.24 0.40 0.64 (0.25) (0.47) (0.72) A Shares Year Ended March 31, 2006 11.39 0.19 1.02 1.21 (0.19) -- (0.19) Period Ended March 31, 2005 10.75 0.13 0.66 0.79 (0.15) -- (0.15) Period Ended May 31, 2004(q) 10.18 0.06(a) 0.58(a) 0.64 (0.07) -- (0.07) C Shares Period Ended March 31, 2006(r) 11.41 0.15 0.98 1.13 (0.15) -- (0.15) Ratio of Ratio of Expenses to Ratio of Net Average Net Investment Net Assets Net Expenses Income (Excluding Asset to (Loss) to Waivers, Value, Net Assets, Average Average Reimbursements Portfolio End of Total End of Net Net and Expense Turnover Period Return+ Period (000) Assets++ Assets++ Offset)++ Rate ------ ------- ------------ -------- ----------- --------------- --------- LIFE VISION AGGRESSIVE GROWTH FU A Shares Year Ended March 31, 2006 $12.29 13.50% $ 2,619 0.52% 1.06% 0.62% 31% Period Ended March 31, 2005 11.05 8.90 2,080 0.55 1.20 1.01 29 Period Ended May 31, 2004(l) 10.23 8.43 867 0.51 (0.24) 5.15 44 C Shares Period Ended March 31, 2006(m) 12.33 13.40 1,146 1.17 0.67 1.22 31 B Shares Year Ended March 31, 2006 12.19 13.10 5,756 0.99 0.50 1.10 31 Period Ended March 31, 2005 10.98 8.44 5,452 1.03 0.53 1.40 29 Year Ended May 31, 2004 10.18 19.49 4,367 1.00 (0.36) 1.95 44 Period Ended May 31, 2003(n) 8.53 18.03 1,052 0.89 (0.86) 1.36 50 LIFE VISION CONSERVATIVE FUND(K) I Shares Year Ended March 31, 2006 11.21 4.96 3,066 0.20 3.58 0.56 29 Period Ended March 31, 2005 11.09 5.18 414 0.17 3.29 1.52 121 Period Ended May 31, 2004(o) 10.87 2.68 30 0.25 2.41 85.33+++ 138 A Shares Year Ended March 31, 2006 11.21 4.63 1,324 0.53 3.10 0.83 29 Period Ended March 31, 2005 11.09 4.88 606 0.56 2.61 1.51 121 Period Ended May 31, 2004(p) 10.86 2.82 474 0.57 2.06 4.00 138 C Shares Period Ended March 31, 2006(m) 11.20 4.22 835 1.03 2.64 1.59 29 B Shares Year Ended March 31, 2006 11.22 4.23 5,189 0.97 2.59 1.19 29 Period Ended March 31, 2005 11.09 4.50 5,635 0.96 2.22 1.67 121 Year Ended May 31, 2004 10.86 5.38 5,012 0.95 1.54 1.81 138 Period Ended May 31, 2003(n) 10.43 4.30 800 0.92 0.85 1.39 160 LIFE VISION GROWTH AND INCOME FU I Shares Year Ended March 31, 2006 12.43 11.05 97,964 0.19 1.96 0.24 34 Period Ended March 31, 2005 11.41 7.77 87,520 0.22 1.82 0.33 59 Year Ended May 31, 2004 10.76 16.92 75,083 0.25 1.38 0.36 97 Year Ended May 31, 2003 9.33 (5.16) 59,449 0.25 1.46 0.37 139 Year Ended May 31, 2002 9.98 (2.97) 77,395 0.25 1.25 0.39 166 Year Ended May 31, 2001 10.42 6.31 37,550 0.25 2.41 0.39 286 A Shares Year Ended March 31, 2006 12.41 10.73 5,737 0.51 1.74 0.58 34 Period Ended March 31, 2005 11.39 7.37 3,575 0.57 1.55 0.91 59 Period Ended May 31, 2004(q) 10.75 6.32 1,426 0.56 1.04 1.95 97 C Shares Period Ended March 31, 2006(r) 12.39 9.94 2,820 1.15 1.39 1.20 34
See Notes to Financial Highlights and Notes to Financial Statements. 122 FINANCIAL HIGHLIGHTS STI CLASSIC FUNDS Selected Data For a Share of Beneficial Interest Outstanding Throughout the Periods Indicated.
Net Realized and Dividends Distributions Net Asset Net Unrealized from from Total Value, Investment Gains Net Realized Dividends Beginning Income (Losses) on Total From Investment Capital and of Period (Loss) Investments Operations Income Gains Distributions --------- ---------- ----------- ---------- ---------- ------------- ------------- LIFE VISION GROWTH AND INCOME FUND(K) B Shares Year Ended March 31, 2006 $11.39 $ 0.14 $ 1.02 $ 1.16 $(0.14) $ -- $(0.14) Period Ended March 31, 2005 10.74 0.08 0.67 0.75 (0.10) -- (0.10) Year Ended May 31, 2004 9.34 0.07(a) 1.42(a) 1.49 (0.09) -- (0.09) Period Ended May 31, 2003(n) 8.10 0.02 1.24 1.26 (0.02) -- (0.02) LIFE VISION MODERATE GROWTH FUND(K) I Shares Year Ended March 31, 2006 10.49 0.29 0.59 0.88 (0.28) (0.24) (0.52) Period Ended March 31, 2005 10.06 0.20 0.50 0.70 (0.22) (0.05) (0.27) Year Ended May 31, 2004 9.02 0.16(a) 1.04(a) 1.20 (0.16) -- (0.16) Year Ended May 31, 2003 9.40 0.16 (0.38) (0.22) (0.16) -- (0.16) Year Ended May 31, 2002 9.73 0.17 (0.32) (0.15) (0.18) -- (0.18) Year Ended May 31, 2001 10.61 0.32 0.20 0.52 (0.34) (1.06) (1.40) A Shares Year Ended March 31, 2006 10.48 0.25 0.59 0.84 (0.24) (0.24) (0.48) Period Ended March 31, 2005 10.05 0.17 0.50 0.67 (0.19) (0.05) (0.24) Period Ended May 31, 2004(s) 9.58 0.10(a) 0.45(a) 0.55 (0.08) -- (0.08) C Shares Period Ended March 31, 2006(r) 10.49 0.20 0.57 0.77 (0.20) (0.24) (0.44) B Shares Year Ended March 31, 2006 10.46 0.21 0.59 0.80 (0.20) (0.24) (0.44) Period Ended March 31, 2005 10.03 0.13 0.50 0.63 (0.15) (0.05) (0.20) Year Ended May 31, 2004 9.00 0.09(a) 1.04(a) 1.13 (0.10) -- (0.10) Period Ended May 31, 2003(n) 8.05 0.03 0.95 0.98 (0.03) -- (0.03) LIFE VISION TARGET DATE 2015 FUND(K) I Shares Period Ended March 31, 2006(t) 10.00 0.17 0.82 0.99 (0.13) -- (0.13) LIFE VISION TARGET DATE 2025 FUND(K) I Shares Period Ended March 31, 2006(u) 10.00 0.13 1.10 1.23 (0.12) -- (0.12) LIFE VISION TARGET DATE 2035 FUND(K) I Shares Period Ended March 31, 2006(v) 10.00 0.13 0.88 1.01 (0.12) -- (0.12) Ratio of Ratio of Expenses to Ratio of Net Average Net Investment Net Assets Net Expenses Income (Excluding Asset to (Loss) to Waivers, Value, Net Assets, Average Average Reimbursements Portfolio End of Total End of Net Net and Expense Turnover Period Return+ Period (000) Assets++ Assets++ Offset)++ Rate(+) ------ ------- ------------ -------- ----------- --------------- --------- LIFE VISION GROWTH AND INCOME FU B Shares Year Ended March 31, 2006 $12.41 10.21% $ 17,829 0.96% 1.21% 1.07% 34% Period Ended March 31, 2005 11.39 7.00 16,641 1.01 1.05 1.34 59 Year Ended May 31, 2004 10.74 15.99 13,060 1.00 0.63 1.61 97 Period Ended May 31, 2003(n) 9.34 15.57 2,017 0.90 0.39 1.34 139 LIFE VISION MODERATE GROWTH FUND I Shares Year Ended March 31, 2006 10.85 8.48 158,301 0.18 2.63 0.22 34 Period Ended March 31, 2005 10.49 6.98 132,522 0.21 2.32 0.32 83 Year Ended May 31, 2004 10.06 13.35 121,659 0.25 1.65 0.36 109 Year Ended May 31, 2003 9.02 (2.21) 93,722 0.25 1.87 0.36 101 Year Ended May 31, 2002 9.40 (1.52) 88,592 0.25 1.81 0.36 202 Year Ended May 31, 2001 9.73 5.28 73,429 0.25 3.04 0.37 247 A Shares Year Ended March 31, 2006 10.84 8.16 5,821 0.47 2.38 0.59 34 Period Ended March 31, 2005 10.48 6.74 8,161 0.47 2.13 0.87 83 Period Ended May 31, 2004(s) 10.05 5.79 3,541 0.55 1.49 1.27 109 C Shares Period Ended March 31, 2006(r) 10.82 7.40 1,674 1.13 1.89 1.19 34 B Shares Year Ended March 31, 2006 10.82 7.60 14,073 0.92 1.87 1.06 34 Period Ended March 31, 2005 10.46 6.28 14,797 0.92 1.59 1.35 83 Year Ended May 31, 2004 10.03 12.66 13,236 1.00 0.91 1.56 109 Period Ended May 31, 2003(n) 9.00 12.22 2,691 0.91 0.93 1.34 101 LIFE VISION TARGET DATE 2015 FUN I Shares Period Ended March 31, 2006(t) 10.86 9.94 270 0.20 2.71 13.92+++ 25 LIFE VISION TARGET DATE 2025 FUN I Shares Period Ended March 31, 2006(u) 11.11 12.33 1,110 0.20 2.28 11.64+++ 17 LIFE VISION TARGET DATE 2035 FUN I Shares Period Ended March 31, 2006(v) 10.89 10.14 590 0.20 2.45 10.98+++ 40
See Notes to Financial Highlights and Notes to Financial Statements. 123 NOTES TO FINANCIAL HIGHLIGHTS * Amount represents less than $0.005. ** Includes redemption fees of $0.01. *** Effective June 1, 2004, the Balanced Fund adopted a change in the amortization and accretion methodology on fixed income securities. The cumulative effect of this change in methodology was immaterial. **** Includes return of capital of $0.003. + Total return excludes sales charge. Not annualized for periods less than one year. ++ Annualized for periods less than one year. +++ Ratio reflects the impact of the initial low level of average net assets associated with commencement of operations. # The Fund had a voluntary reimbursement by the Investment Adviser and affiliates that had no effect on total returns for the period. ## The Fund's total return consists of a voluntary reimbursement by the Investment Adviser and affiliates of 0.09% for a realized investment loss. Excluding this reimbursement, total return would have been 5.01% and 4.68% for the I Shares and A Shares, respectively. There was no effect to total return in C Shares. ### The Fund's total return includes the effect of an asset valuation adjustment as of March 31, 2006. Excluding this effect, total return would have been 27.08% and 26.21% for the A Shares and C Shares, respectively. There was no effect to total return in I Shares. (+) Not annualized for periods less than one year. (a) Per share data calculated using average shares outstanding method. (b) Commenced operations on February 23, 2004. (c) Commenced operations on February 27, 2004. (d) Commenced operations on November 30, 2001. (e) Commenced operations on October 27, 2003. (f) Commenced operations on October 14, 2003. (g) Commenced operations on October 9, 2003. (h) Commenced operations on August 7, 2003. (i) Commenced operations on October 8, 2003. (j) Commenced operations on October 13, 2003. (k) The Life Vision Funds and its shareholders indirectly bear a pro rata share of the expenses of the underlying STI Classic Funds. The expense ratios do not include such expenses. (l) Commenced operations on October 16, 2003. (m) Commenced operations on April 4, 2005. (n) Commenced operations on March 11, 2003. (o) Commenced operations on November 6, 2003. (p) Commenced operations on November 11, 2003. (q) Commenced operations on November 5, 2003. (r) Commenced operations on April 6, 2005. (s) Commenced operations on October 10, 2003. (t) Commenced operations on October 12, 2005. (u) Commenced operations on October 21, 2005. (v) Commenced operations on November 2, 2005. 124 NOTES TO FINANCIAL STATEMENTS STI CLASSIC FUNDS March 31, 2006 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 offering 53 funds as of March 31, 2006. The Trust is authorized to issue an unlimited number of shares without par value. The financial statements presented herein are those of the Aggressive Growth Stock Fund, the Capital Appreciation Fund, the Emerging Growth Stock Fund, the International Equity Fund, the International Equity Index Fund, the Large Cap Relative Value Fund (formerly the Growth and Income Fund), the Large Cap Value Equity Fund (formerly the Value Income Stock Fund), the Mid-Cap Equity Fund, the Mid-Cap Value Equity Fund, the Quality Growth Stock Fund (formerly the Tax Sensitive Growth Stock Fund), the Small Cap Growth Stock Fund, the Small Cap Value Equity Fund, the Strategic Quantitative Equity Fund, the Balanced Fund, the Life Vision Aggressive Growth Fund, the Life Vision Conservative Fund, the Life Vision Growth and Income Fund, the Life Vision Moderate Growth Fund, the Life Vision Target Date 2015 Fund, the Life Vision Target Date 2025 Fund and the Life Vision Target Date 2035 Fund (each a "Fund" and collectively the "Funds"). The Funds may offer the following share classes: I Shares (formerly T Shares), A Shares and C Shares (formerly L Shares). In addition, the Life Vision Aggressive Growth Fund, the Life Vision Conservative Fund, the Life Vision Growth and Income Fund and the Life Vision Moderate Growth Fund may offer B Shares. The financial statements of the remaining funds are presented separately. The Funds' prospectus provides a description of the Funds' investment objectives, policies and strategies. The assets of each Fund are segregated, and a shareholder's interest is limited to the Fund in which shares are held. Each class of shares has identical rights and privileges except with respect to the fees paid under the Distribution Plan and Distribution and Services Plan, voting rights on matters affecting a single class of shares and sales charges. The A Shares of the Funds (except Life Vision Conservative Fund) have a maximum sales charge on purchases of 5.75% as a percentage of original purchase price. Life Vision Conservative Fund A Shares have a maximum sales charge on purchases of 4.75% as a percentage of original purchase price. Certain purchases of A Shares will not be subject to a front-end sales charge but will be subject to a contingent deferred sales charge (CDSC) of 1.00% if redeemed within one year of purchase. The C Shares have a maximum CDSC of 1.00% (2.00% if purchased prior to August 1, 2005) as a percentage of either the original purchase price or the next calculated price after the Funds receive the redemption request, whichever is less, if redeemed within one year of purchase. The B Shares will not be subject to a sales charge but will be subject to a maximum CDSC of 5.00% as a percentage of original purchase price if redeemed within five years of purchase. Effective August 1, 2005, investors are not able to make new purchases of Class B Shares, except through dividend or distribution reinvestments in Class B Shares and exchanges of Class B Shares of a Fund for Class B Shares of another Fund. Effective April 30, 2004, the Small Cap Value Equity Fund was closed to new investors. Under the Trust's organizational documents, its officers and trustees are indemnified against certain liabilities arising out of the performance of their duties to the Trust. In addition, in the normal course of business, the Trust enters into contracts with its vendors and others that provide for general indemnifications. The Trust's maximum exposure under these arrangements is unknown as this would involve future claims that may be made against the Trust. However, based on experience, the Trust expects that risk of loss to be remote. 2. Reorganizations Aggressive Growth Stock Fund -- The Trust entered into an agreement and plan of reorganization on behalf of the Information and Technology Fund and the Aggressive Growth Stock Fund, that provides for the acquisition by the Aggressive Growth Stock Fund of all of the assets, subject to stated liabilities, of the Information and Technology Fund, in exchange for I Shares, A Shares, and C Shares of the Aggressive Growth Stock Fund, the distribution of such shares to the shareholders of the Information and Technology Fund and 125 NOTES TO FINANCIAL STATEMENTS (continued) STI CLASSIC FUNDS March 31, 2006 the dissolution of the Information and Technology Fund. The reorganization, which qualified as a tax-free exchange for Federal income tax purposes, was completed on December 20, 2004 following approval by shareholders of the Information and Technology Fund at a special shareholder meeting. The following is a summary of shares outstanding, net assets and net asset value per share issued immediately before and after the reorganization:
Before Reorganization After Reorganization ----------------------------------- -------------------- Information and Aggressive Growth Aggressive Growth Technology Fund Stock Fund Stock Fund --------------- ----------------- -------------------- Shares...................................................... 1,905,466 4,386,350 5,815,961 Net Assets.................................................. $14,935,816 $45,982,135 $60,917,951 Net Asset Value: I Shares.................................................. $ 8.01 $ 10.48 $ 10.48 A Shares.................................................. $ 7.98 $ 10.45 $ 10.45 C Shares.................................................. $ 7.63 $ 10.40 $ 10.40 Net unrealized appreciation............................... $ 1,954,611 $ 3,927,078 $ 5,881,689
Large Cap Relative Value -- The Trust entered into an agreement and plan of reorganization with the CCMI Funds pursuant to which all of the assets, subject to stated liabilities, of each portfolio of the CCMI Funds were transferred to a corresponding series of the Trust in exchange for a corresponding Class of shares of that series. The reorganization, which qualified as a tax-free exchange for Federal income tax purposes, was effective on March 21, 2005, following approval by shareholders of the CCMI Funds at a special shareholder meeting on March 18, 2005. The following is a summary of shares outstanding, net assets and net asset value per share issued immediately before and after the reorganization:
After Before Reorganization Reorganization -------------------------------------- ------------------- Large Cap Relative Large Cap Relative CCMI Equity Fund Value Fund Value Fund ---------------- ------------------- ------------------- Shares...................................................... 7,387,034 55,660,341 62,266,100 Net Assets.................................................. $106,677,983 $898,832,391 $1,005,510,374 Net Asset Value: I Shares (a).............................................. $ 16.15 $ 16.15 A Shares.................................................. $ 14.44 Net unrealized appreciation............................... $ 23,786,949 $200,133,667 $ 223,920,616
(a) Effective March 21, 2005 the CCMI Equity Fund A Shares merged into the Large Cap Relative Value Fund I Shares. 3. Significant Accounting Policies The following is a summary of significant accounting policies followed by the Trust in the preparation of its financial statements. These policies are in conformity with accounting principles generally accepted in the United States of America ("GAAP"). The preparation of financial statements in accordance with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of income and expense during the reporting period. The actual results could differ from these estimates. Security Valuation -- Securities listed on a securities exchange, market or automated quotation system for which quotations are readily available (except for securities traded on NASDAQ), including securities traded over the counter, are valued at the last quoted sale price on the primary exchange or market (foreign or domestic) on which they are traded on valuation date (or at approximately 4:00 p.m. Eastern Time if a security's primary exchange is normally open at that time), or, if there is no such reported sale on the valuation date, at the most recent quoted bid price. For securities traded on NASDAQ, the NASDAQ Official Closing Price will be used. If available, debt securities are priced based upon valuations provided by independent, third-party pricing agents. Such values generally reflect the last reported sale 126 NOTES TO FINANCIAL STATEMENTS (continued) STI CLASSIC FUNDS March 31, 2006 price if the security is actively traded. The third-party pricing agents may also value debt securities at an evaluated bid price by employing methodologies that utilize actual market transactions, broker-supplied valuations, or other methodologies designed to identify the market value for such securities. Debt obligations with remaining maturities of sixty days or less may be valued at their amortized cost, which approximates market value. The prices for foreign securities are reported in local currency and converted to U.S. dollars at the exchange rate of such currencies against the U.S. dollar, as of the close of regular trading on the New York Stock Exchange (usually 4:00 p.m. Eastern Time), as provided by an independent pricing service approved by the Funds' Board of Trustees (the "Board"). If a security price cannot be obtained from an independent, third-party pricing agent, the Funds' administrator shall seek to obtain a bid price from at least one independent broker. Securities for which market prices are not "readily available" are valued in accordance with Fair Value Procedures established by the Board. The Funds' Fair Value Procedures will be performed and monitored by a Valuation Committee (the "Committee") designated by the Board. Some of the more common reasons that may necessitate a security be valued using Fair Value Procedures include, but are not limited to: the security's trading has been halted or suspended; the security has been de-listed from a national exchange; the security's primary trading market is temporarily closed at a time when under normal conditions it would be open; or the security's primary pricing source is not able or willing to provide a price. When a security is valued in accordance with the Fair Value Procedures, the Committee determines the value after taking into consideration relevant information reasonably available to the Committee. For securities that principally trade on a foreign market or exchange, a significant gap in time can exist between the time of a particular security's last trade and the time at which a Fund calculates its net asset value. The closing prices of such securities may no longer reflect their market value at the time the Fund calculates net asset value if an event that could materially affect the value of those securities (a "Significant Event") has occurred between the time of the security's last close and the time that the Fund calculates net asset value. A Significant Event may relate to a single issuer or to an entire market sector. If the adviser or sub-adviser of a Fund becomes aware of a Significant Event that has occurred with respect to a security or group of securities after the closing of the exchange or market on which the security or securities principally trade, but before the time at which the Fund calculates net asset value, it shall immediately notify the Funds' accounting agent and may preauthorize the Funds' accounting agent to utilize a pricing service authorized by the Board (a "Fair Value Pricing Service") that has been designed to determine a fair value. On a day when a Fair Value Pricing Service is so utilized pursuant to a preauthorization, the Committee need not meet. If the adviser or sub-adviser does not pre-authorize the Fund's accounting agent to utilize a Fair Value Pricing Service, the adviser or sub-adviser will request that a Committee Meeting be called. In addition, the Funds' accounting agent monitors price movements among certain selected indices, securities and/or groups of securities that may be an indicator that the closing prices received earlier in the day from foreign exchanges or markets may not reflect market value at the time the Fund calculates net asset value. If price movements in a monitored index or security exceed levels established by the Funds ("Trigger Points"), the Funds may use a systematic valuation model provided by an independent third party to fair value their international equity securities. The assets of the Life Vision Aggressive Growth Fund, the Life Vision Conservative Fund, the Life Vision Growth and Income Fund, the Life Vision Moderate Growth Fund, the Life Vision Target Date 2015 Fund, the Life Vision Target Date 2025 Fund and the Life Vision Target Date 2035 Fund (the "Life Vision Funds") consist of investments in underlying affiliated investment companies, which are valued at their respective daily net asset values. Recognition of net investment income by the Life Vision Funds is affected by the timing of the declaration of dividends by the STI Classic Funds in which the Life Vision Funds invest. Also, in addition to the Life Vision Funds' direct expenses, shareholders bear a proportionate share of the underlying Funds' expenses. Security Transactions and Investment Income -- During the period, security transactions are accounted for no later than one business day following the trade date. For financial reporting purposes, however, security 127 NOTES TO FINANCIAL STATEMENTS (continued) STI CLASSIC FUNDS March 31, 2006 transactions are accounted for on trade date on the last business day of the reporting period. Securities sold are determined on a specific identification basis. Interest income is recognized on an accrual basis and includes amortization or accretion of premium or discount. 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 or amortization of purchase discounts or premiums during the respective holding period. Dividend income is recorded on the ex-dividend date. Repurchase Agreements -- The Funds may purchase instruments from financial institutions, such as banks and broker-dealers, subject to the seller's agreement to repurchase them at an agreed upon time and price ("repurchase agreement"). A third party custodian bank takes possession of the underlying securities ("collateral") of a repurchase agreement, the value of which exceeds the principal amount of the repurchase transaction, including accrued interest. In the event of default on the obligation to repurchase, each Fund has the right to liquidate the collateral and apply the proceeds in satisfaction of the obligation. In the event of default or bankruptcy by the counterparty to the repurchase agreement, realization and/or retention of the collateral or proceeds may be subject to legal proceedings. Securities Purchased on a When-Issued Basis -- Delivery and payment for securities that have been purchased by a Fund on a forward commitment or when-issued basis can take place up to a month or more after the transaction date. During this period, such securities are subject to market fluctuations. The purchase of securities on a when-issued or forward commitment basis may increase the volatility of a Fund's net asset value if the Fund makes such investments while remaining substantially fully invested. Foreign Currency Translation -- The books and records of the International Equity and the International Equity Index Funds are maintained in U.S. dollars on the following basis: (i) market value of investment securities, other assets and liabilities at the current rate of exchange; and (ii) purchases and sales of investment securities, income and expenses at the relevant rates of exchange prevailing on the respective dates of such transactions. The International Equity and the International Equity Index Funds do not isolate the portion of operations resulting from changes in foreign exchange rates on investments from fluctuations arising from changes in market prices of securities held. Such fluctuations are included with the net realized and unrealized gain or loss from investments and foreign currencies. Forward Foreign Currency Contracts -- The International Equity and the International Equity Index Funds may enter into forward foreign currency contracts as hedges against either specific transactions, fund positions or anticipated fund positions. All commitments are "marked-to-market" daily at the applicable foreign exchange rate, and any resulting unrealized gains or losses are recorded currently. The Fund realizes gains and losses at the time forward contracts are extinguished. Unrealized gains or losses on outstanding positions in forward foreign currency contracts held at the close of the year are recognized as ordinary income or loss for Federal income tax purposes. As of March 31, 2006, there were no open forward foreign currency contracts. Compensating Balances -- If a Fund has a cash overdraft in excess of $100,000 it is required to deposit an amount equal to 110% of the overdraft in a compensating balance account with its custodian, SunTrust Bank, a wholly-owned subsidiary of SunTrust Banks, Inc., on the following business day. If a Fund has a positive cash balance in excess of $100,000 it is allowed to overdraw an amount equal to 90% of the balance from SunTrust Bank on the following business day. All such deposits to, and overdrafts from, the compensating balance account are non-interest bearing and are for a duration of one business day. This does not apply to the International Equity Fund or International Equity Index Fund. Expenses -- Expenses that are directly related to a specific Fund are charged to that Fund. Class specific expenses, such as distribution fees, if any, are borne by that class. Other operating expenses of the Trust are pro-rated to the Funds on the basis of relative net assets or another appropriate basis. 128 NOTES TO FINANCIAL STATEMENTS (continued) STI CLASSIC FUNDS March 31, 2006 Classes -- Income, non-class specific expenses and realized/unrealized gains and losses are allocated to the respective classes within a Fund on the basis of the relative daily net assets. Dividends and Distributions to Shareholders -- Dividends and distributions to shareholders are recorded on the ex-dividend date. Dividends from net investment income, if any, are declared and paid each calendar quarter by the Funds, except for the International Equity and the International Equity Index Funds, which distribute income annually. Any net realized capital gains on sales of securities are distributed to shareholders at least annually. However, to the extent that net realized capital gains can be offset by capital loss carryovers, such gains will not be distributed. Redemption Fees -- A redemption fee of 2% of the value of the shares sold will be imposed on shares redeemed within seven days or less after the date of purchase (60 days or less for the International Equity and International Equity Index Funds) unless the redemption is excluded under the Funds' Redemption Fee Policy. For the year ended March 31, 2006, the Funds collected redemption fees which are disclosed on the Statements of Changes in Net Assets. Redemption Fees are recorded as an addition to paid-in capital. 4. Agreements and Other Transactions with Affiliates Investment Advisory Agreement -- The Trust and Trusco Capital Management, Inc. (the "Investment Adviser"), a wholly-owned subsidiary of SunTrust Banks, Inc., have entered into advisory agreements. Zevenbergen Capital, Inc. serves as the Sub-Adviser for the Aggressive Growth Stock Fund and Emerging Growth Stock Fund. Under revised terms of the agreements dated August 1, 2005, the Funds are charged the following annual fees, which are computed daily and paid monthly based upon average daily net assets. Breakpoints are used in computing the advisory fee. The maximum annual advisory fee is charged on average daily net assets of each Fund up to $500 million, a discount of 5% applies on the next $500 million, a discount of 10% applies on amounts over $1 billion. Fee rates for the period August 1, 2005 through March 31, 2006 were as follows:
Maximum Annual Net Annual Advisory Fee(%) Fees Paid(%) ----------------- ------------- Capital Appreciation Fund................................... 0.92 0.92 International Equity Fund................................... 1.15 1.13 International Equity Index Fund............................. 0.50 0.49 Large Cap Relative Value Fund............................... 0.83 0.81 Large Cap Value Equity Fund................................. 0.78 0.78 Mid-Cap Equity Fund......................................... 1.00 1.00 Mid-Cap Value Equity Fund................................... 1.00 1.00 Quality Growth Stock Fund................................... 0.85 0.83 Small Cap Growth Stock Fund................................. 1.12 1.09 Small Cap Value Equity Fund................................. 1.13 1.13 Strategic Quantitative Equity Fund.......................... 0.85 0.85 Balanced Fund............................................... 0.85 0.85 Life Vision Aggressive Growth Fund.......................... 0.10 0.10 Life Vision Conservative Fund............................... 0.10 -- Life Vision Growth and Income Fund.......................... 0.10 0.10 Life Vision Moderate Growth Fund............................ 0.10 0.09 Life Vision Target Date 2015 Fund........................... 0.10 0.10 Life Vision Target Date 2025 Fund........................... 0.10 0.10 Life Vision Target Date 2035 Fund........................... 0.10 0.10
129 NOTES TO FINANCIAL STATEMENTS (continued) STI CLASSIC FUNDS March 31, 2006 For their services as Investment Adviser and Sub-Adviser, respectively, the Investment Adviser and Zevenbergen Capital, Inc. receive aggregate annual fees from the Aggressive Growth Stock and Emerging Growth Stock Funds, which are computed daily and paid monthly based upon average daily net assets. Fee rates for the period August 1, 2005 through March 31, 2006 were as follows:
Maximum Annual Net Annual Advisory Fee(%) Fees Paid(%) ----------------- ------------- Aggressive Growth Stock Fund................................ 1.10 1.09 Emerging Growth Stock Fund.................................. 1.10 1.09
Prior to August 1, 2005, the Funds that were in operation during that period paid the following annual fees which were computed daily and paid monthly based upon average daily net assets. Fee rates for the period April 1, 2005 through July 31, 2005, including the aggregate fees paid to the Investment Adviser and Sub-Adviser for the Aggressive Growth Stock and Emerging Growth Stock Funds, were as follows:
Maximum Annual Net Annual Advisory Fee(%) Fees Paid(%) ----------------- ------------- Aggressive Growth Stock Fund................................ 1.25 1.06 Capital Appreciation Fund................................... 1.15 1.14 Emerging Growth Stock Fund.................................. 1.25 1.12 International Equity Fund................................... 1.25 1.25 International Equity Index Fund............................. 0.90 0.84 Large Cap Relative Value Fund............................... 0.90 0.90 Large Cap Value Equity Fund................................. 0.80 0.80 Mid-Cap Equity Fund......................................... 1.15 1.15 Mid-Cap Value Equity Fund................................... 1.25 1.18 Quality Growth Stock Fund................................... 1.15 1.11 Small Cap Growth Stock Fund................................. 1.15 1.15 Small Cap Value Equity Fund................................. 1.15 1.15 Strategic Quantitative Equity Fund.......................... 1.15 1.00 Balanced Fund............................................... 0.95 0.92 Life Vision Aggressive Growth Fund.......................... 0.25 0.12 Life Vision Conservative Fund............................... 0.25 -- Life Vision Growth and Income Fund.......................... 0.25 0.14 Life Vision Moderate Growth Fund............................ 0.25 0.16
The Investment Adviser has contractually agreed, effective August 1, 2005 until at least August 1, 2007, to waive fees and/or reimburse each Fund to the extent necessary to maintain each Fund's Total Fund Operating Expenses, expressed as a percentage of average daily net assets, as noted below:
Total Operating Expenses(%) --------------- Life Vision Aggressive Growth Fund.......................... I Shares 0.20 Life Vision Aggressive Growth Fund.......................... A Shares 0.50 Life Vision Aggressive Growth Fund.......................... C Shares 1.20 Life Vision Aggressive Growth Fund.......................... B Shares 0.95 Life Vision Conservative Fund............................... I Shares 0.20 Life Vision Conservative Fund............................... A Shares 0.50 Life Vision Conservative Fund............................... C Shares 1.20 Life Vision Conservative Fund............................... B Shares 0.95
130 NOTES TO FINANCIAL STATEMENTS (continued) STI CLASSIC FUNDS March 31, 2006
Total Operating Expenses(%) --------------- Life Vision Growth and Income Fund.......................... I Shares 0.20 Life Vision Growth and Income Fund.......................... A Shares 0.50 Life Vision Growth and Income Fund.......................... C Shares 1.20 Life Vision Growth and Income Fund.......................... B Shares 0.95 Life Vision Moderate Growth Fund............................ I Shares 0.20 Life Vision Moderate Growth Fund............................ A Shares 0.50 Life Vision Moderate Growth Fund............................ C Shares 1.20 Life Vision Moderate Growth Fund............................ B Shares 0.95 Life Vision Target Date 2015 Fund........................... I Shares 0.20 Life Vision Target Date 2015 Fund........................... A Shares 0.50 Life Vision Target Date 2015 Fund........................... C Shares 1.20 Life Vision Target Date 2025 Fund........................... I Shares 0.20 Life Vision Target Date 2025 Fund........................... A Shares 0.50 Life Vision Target Date 2025 Fund........................... C Shares 1.20 Life Vision Target Date 2035 Fund........................... I Shares 0.20 Life Vision Target Date 2035 Fund........................... A Shares 0.50 Life Vision Target Date 2035 Fund........................... C Shares 1.20
Also effective August 1, 2005, the Investment Adviser may retain the difference between the Total Operating Expense and the actual total expense ratio to recapture any of its prior waivers or reimbursements, until August 1, 2008. Such repayments shall be made monthly, but only to the extent that such repayments would not cause the annualized total expense ratio to exceed the Total Operating Expense in place at that time. As of March 31, 2006, the fee repayments that may potentially be made to the Investment Adviser are as follows (in thousands):
Amount($) ---------- Life Vision Aggressive Growth Fund.......................... 2 Life Vision Conservative Fund............................... 21 Life Vision Growth and Income Fund.......................... 1 Life Vision Moderate Growth Fund............................ 10
During the year ended March 31, 2006, the Investment Adviser also voluntarily waived fees in the Funds in order to maintain a more competitive expense ratio for shareholders. These voluntary waivers will not be recouped by the Investment Adviser in subsequent years. Administration, Fund Accounting and Transfer Agency Agreement -- The Trust and STI Classic Variable Trust are parties to a Master Services Agreement with BISYS Fund Services Ohio, Inc. (the "Administrator"), under which the Administrator provides administrative, fund accounting, transfer agent and shareholder services for an annual fee (expressed as a percentage of the combined average daily net assets of the Trust and STI Class Variable Trust) of: 0.0275% up to $25 billion, 0.0225% on the next $5 billion and 0.0175% on amounts over $30 billion plus an additional class fee of $2,593 per class annually, applicable to each additional class of shares over 145 total classes of shares. The Master Services Agreement provides for the Administrator to pay certain insurance premiums for the Trust and STI Classic Variable Trust, including $300,000 toward the premium for Directors and Officers Liability/Errors and Omissions insurance coverage, and $25,000 toward the premium for Fidelity Bond coverage. The Administrator has agreed, under the terms of the Master Services Agreement, to pay certain legal expenses for the benefit of the Trust and the Classic Variable Trust relating to administrative 131 NOTES TO FINANCIAL STATEMENTS (continued) STI CLASSIC FUNDS March 31, 2006 service matters. The Master Services Agreement further provides for the Administrator to waive a portion of its fees for the benefit of shareholders. Such payments and fee waivers are expected to total approximately $400,000 to $650,000 annually, and will not be recouped by the Administrator in subsequent years. Transfer Agency Agreement -- Prior to December 12, 2005, SunTrust Investment Services ("STIS"), a wholly-owned subsidiary of SunTrust Banks, Inc., provided certain transfer agency account activity processing and servicing to the Trust. STIS received transfer agency service fees based upon a monthly per account charge for the total shareholder accounts at the Trust's transfer agent. These fees are included in the Transfer Agent Fees on the Statements of Operations. Distribution Agreement -- The Trust and BISYS Fund Services Limited Partnership (the "Distributor") are parties to a Distribution Services Agreement. The Distributor receives no fees for its distribution services under the agreement for the I Shares of any Fund. With respect to the A Shares, C Shares and B Shares, the Distributor receives amounts, pursuant to a Distribution Plan and (in the case of C Shares and B Shares) a Distribution and Service Plan, based upon average daily net assets of each respective class which are computed daily and paid monthly. These fees, expressed as a percentage of average daily net assets, for the period August 1, 2005 through March 31, 2006 are as follows:
Board Approved Board Approved and Board Approved and and Charged Charged Charged A Share Distribution C Share Distribution B Share Distribution Fee(%) and Service Fee(%) and Service Fee(%) -------------------- -------------------- -------------------- Aggressive Growth Stock Fund....................... 0.30 1.00 N/A Capital Appreciation Fund.......................... 0.30 1.00 N/A Emerging Growth Stock Fund......................... 0.30 1.00 N/A International Equity Fund.......................... 0.30 1.00 N/A International Equity Index Fund.................... 0.30 1.00 N/A Large Cap Relative Value Fund...................... 0.25 1.00 N/A Large Cap Value Equity Fund........................ 0.30 1.00 N/A Mid-Cap Equity Fund................................ 0.30 1.00 N/A Mid-Cap Value Equity Fund.......................... 0.30 1.00 N/A Quality Growth Stock Fund.......................... 0.30 1.00 N/A Small Cap Growth Stock Fund........................ 0.30 1.00 N/A Small Cap Value Equity Fund........................ 0.25 0.25 N/A Strategic Quantitative Equity Fund................. 0.25 1.00 N/A Balanced Fund...................................... 0.28 1.00 N/A Life Vision Aggressive Growth Fund................. 0.30 1.00 0.75 Life Vision Conservative Fund...................... 0.30 1.00 0.75 Life Vision Growth and Income Fund................. 0.30 1.00 0.75 Life Vision Moderate Growth Fund................... 0.30 1.00 0.75 Life Vision Target Date 2015 Fund.................. 0.30 1.00 N/A Life Vision Target Date 2025 Fund.................. 0.30 1.00 N/A Life Vision Target Date 2035 Fund.................. 0.30 1.00 N/A
132 NOTES TO FINANCIAL STATEMENTS (continued) STI CLASSIC FUNDS March 31, 2006 Prior to August 1, 2005, with respect to the A Shares, C Shares and B Shares, the Distributor received amounts, pursuant to a Distribution Plan and (in the case of C Shares and B Shares) a Distribution and Service Plan, based upon average daily net assets of each respective class which were computed daily and paid monthly. These fees, expressed as a percentage of average daily net assets, for the Funds that were in operation during the period April 1, 2005 through July 31, 2005 were as follows:
Maximum Maximum Maximum C Share B Share A Share Net Annual Distribution Net Annual Distribution Net Annual Distribution Fees and Fees and Fees Fee(%) Paid(%) Service Fee(%) Paid(%) Service Fee(%) Paid(%) --------------- ---------- --------------- ---------- --------------- ---------- Aggressive Growth Stock Fund... 0.35 0.35 1.00 0.92 N/A N/A Capital Appreciation Fund...... 0.68 0.68 1.00 1.00 N/A N/A Emerging Growth Stock Fund..... 0.35 0.35 1.00 0.88 N/A N/A International Equity Fund...... 0.33 0.33 1.00 1.00 N/A N/A International Equity Index Fund......................... 0.38 0.38 1.00 1.00 N/A N/A Large Cap Relative Value Fund.. 0.25 0.23 1.00 0.98 N/A N/A Large Cap Value Equity Fund.... 0.33 0.33 1.00 1.00 N/A N/A Mid-Cap Equity Fund............ 0.43 0.43 1.00 1.00 N/A N/A Mid-Cap Value Equity Fund...... 0.40 0.40 1.00 0.70 N/A N/A Quality Growth Stock Fund...... 0.40 0.40 1.00 1.00 N/A N/A Small Cap Growth Stock Fund.... 0.50 0.40 1.00 1.00 N/A N/A Small Cap Value Equity Fund.... 0.33 0.25 1.00 0.25 N/A N/A Strategic Quantitative Equity Fund......................... 0.25 0.25 1.00 1.00 N/A N/A Balanced Fund.................. 0.28 0.28 1.00 1.00 N/A N/A Life Vision Aggressive Growth Fund......................... 0.50 0.34 1.00 0.78 1.00 0.83 Life Vision Conservative Fund......................... 0.40 0.40 1.00 0.28 1.00 0.80 Life Vision Growth and Income Fund......................... 0.50 0.36 1.00 0.78 1.00 0.81 Life Vision Moderate Growth Fund......................... 0.50 0.24 1.00 0.75 1.00 0.69
Custodian Agreements -- SunTrust Bank acts as Custodian for the Funds, except for the International Equity Fund and the International Equity Index Fund, which has appointed Brown Brothers Harriman & Co. as Custodian. The Funds pay custody fees on the basis of net assets and transaction costs. Other -- Certain officers of the Trust are also officers of the Investment Adviser, the Administrator and/or the Distributor. Such officers receive no fees from the Trust for serving as officers of the Trust. Each of the trustees receives an annual retainer fee and an additional fee for each meeting attended. Trustees receive additional fee for attendance at committee meetings. The current fees are as follows:
Chairman($) Trustee($) ----------- ---------- Annual Retainer............................................. 50,000 40,000 Regular Meeting Fee......................................... 7,500 6,000 Special Meeting Fee......................................... 3,750 3,000 Committee Meeting Fee....................................... 4,500 2,500
Trustees are also reimbursed for certain expenses incurred. The Investment Adviser provides services to the Trust and the STI Classic Variable Trust to ensure compliance with applicable laws and regulations. In addition, the Investment Adviser has designated a dedicated compliance staff and an employee to serve as Chief Compliance Officer. The Investment Adviser received a fee totaling $120,000 for these services during the year ended March 31, 2006. The Investment Adviser has expanded the scope of its compliance 133 NOTES TO FINANCIAL STATEMENTS (continued) STI CLASSIC FUNDS March 31, 2006 services to the Trust and the STI Classic Variable Trust and, effective April 1, 2006, will receive annual fees totaling $475,000 for the fiscal year ending March 31, 2007. In addition, the Administrator provides an employee and staff to assist the Chief Compliance Officer for the Trust, including providing certain related services, and receives an annual fee of $150,000 for providing these services. The fees above are allocated across the assets of the Trust and the STI Classic Variable Trust. For the year ended March 31, 2006, the total amount paid by the Trust related to trustees and compliance services was $961,554. During the period the Investment Adviser reimbursed the International Equity Fund and the International Equity Index Fund $1,870 and $6,506, respectively, for losses relating to the application of revised foreign exchange rates. On February 27, 2006, the Balanced Fund received a redemption request of approximately $53,000,000, which represented approximately 31% of the net assets of that Fund as of that date. The Investment Adviser immediately sold significant security positions sufficient to generate the amount of cash required to satisfy the redemption request. These sales were conducted in an expedited manner not contemplated in the ordinary operations of the Fund. As a result, certain of the securities were sold at prices less than those achievable in the ordinary operations of the Fund. The Investment Adviser determined the security sales, if undertaken in the ordinary operations of the Fund, would have resulted in additional sales proceeds to the Fund. Accordingly, the Investment Adviser and an affiliate of the Investment Adviser, contributed a total of $71,348 to the Balanced Fund, such that shareholders were unaffected by the impact of the expedited security sales. The Trust has entered into an agreement with SunTrust Robinson Humphrey, a division of SunTrust Capital Markets, Inc., which is a direct non-bank subsidiary of SunTrust Banks, Inc., to act as an agent in placing repurchase agreements for the Trust. For the year ended March 31, 2006, the following Funds paid SunTrust Robinson Humphrey, through a reduction in the yield earned by the Funds on those repurchase agreements, the following amounts (in thousands):
Fees($) ------- Aggressive Growth Stock Fund................................ 2 Capital Appreciation Fund................................... 8 Emerging Growth Stock Fund.................................. -- Large Cap Value Equity Fund................................. 11 Mid-Cap Equity Fund......................................... 6 Quality Growth Stock Fund................................... 1 Small Cap Growth Stock Fund................................. 21 Small Cap Value Equity Fund................................. 6 Strategic Quantitative Equity Fund.......................... 2 Balanced Fund............................................... 3 Amounts designated as "--" round to less than $1,000.
5. Investment Transactions The cost of purchases and the proceeds from sales and maturities of securities, excluding short-term investments and U.S. Government securities, for the year ended March 31, 2006 were as follows (in thousands):
Sales and Purchases($) Maturities($) ------------ ------------- Aggressive Growth Stock Fund................................ 202,926 33,727 Capital Appreciation Fund................................... 1,165,303 1,537,573 Emerging Growth Stock Fund.................................. 50,324 32,262 International Equity Fund................................... 682,173 392,894
134 NOTES TO FINANCIAL STATEMENTS (continued) STI CLASSIC FUNDS March 31, 2006
Sales and Purchases($) Maturities($) ------------ ------------- International Equity Index Fund............................. 156,355 40,795 Large Cap Relative Value Fund............................... 939,317 724,082 Large Cap Value Equity Fund................................. 906,734 1,009,228 Mid-Cap Equity Fund......................................... 557,980 418,623 Mid-Cap Value Equity Fund................................... 357,945 357,597 Quality Growth Stock Fund................................... 117,387 170,870 Small Cap Growth Stock Fund................................. 1,632,072 1,265,231 Small Cap Value Equity Fund................................. 434,849 607,379 Strategic Quantitative Equity Fund.......................... 888,936 718,475 Balanced Fund............................................... 114,509 219,834 Life Vision Aggressive Growth Fund.......................... 20,976 16,373 Life Vision Conservative Fund............................... 5,491 2,467 Life Vision Growth and Income Fund.......................... 39,412 37,029 Life Vision Moderate Growth Fund............................ 62,761 52,755 Life Vision Target Date 2015 Fund........................... 269 43 Life Vision Target Date 2025 Fund........................... 1,030 38 Life Vision Target Date 2035 Fund........................... 633 103
The cost of purchases and proceeds from sales and maturities of long-term U.S. Government securities for the Balanced Fund during the year ended March 31, 2006, in thousands, was $137,487 and $188,420, respectively. 6. Federal Tax Policies and Information It is the policy of each Fund to continue to qualify as a regulated investment company by complying with the provisions available to certain investment companies as defined in applicable sections of the Internal Revenue Code, and to make distributions from net investment income and from net realized gains sufficient to relieve it from all, or substantially all, federal income taxes. Withholding taxes on foreign dividends have been paid or provided for in accordance with each applicable country's tax rules and rates. The amounts of dividends from net investment income and of distributions from net realized gains are determined in accordance with federal income tax regulations, which may differ from GAAP. These "book/tax" differences are either considered temporary or permanent in nature. To the extent these differences are permanent in nature (i.e. foreign currency transactions), such amounts are reclassified within the composition of net assets based on their federal tax-basis treatment; temporary differences do not require reclassification. At March 31, 2006, the total cost of securities and the net realized gains or losses on securities sold for Federal income tax purposes were different from amounts reported for financial reporting purposes. These differences were generally due to losses on wash sales, which cannot be used for Federal income tax purposes in the current year and have been deferred for use in future years. The Federal tax cost and aggregate gross unrealized appreciation and depreciation for securities held by the Funds at March 31, 2006, are presented on each Fund's Schedule of Portfolio Investments. The tax character of distributions paid to shareholders during the year ended March 31, 2006 was as follows (in thousands):
Distributions Paid From ------------------------- Net Net Long Total Investment Term Capital Distributions Fund Income($) Gains($) Paid($)* - ---- ---------- ------------ ------------- Aggressive Growth Stock Fund................................ 5 -- 5 Capital Appreciation Fund................................... 2,820 33,118 35,938
135 NOTES TO FINANCIAL STATEMENTS (continued) STI CLASSIC FUNDS March 31, 2006
Distributions Paid From ------------------------- Net Net Long Total Investment Term Capital Distributions Fund Income($) Gains($) Paid($)* - ---- ---------- ------------ ------------- Emerging Growth Stock Fund.................................. -- -- -- International Equity Fund................................... 8,844 -- 8,844 International Equity Index Fund............................. 9,687 -- 9,687 Large Cap Relative Value Fund............................... 20,863 51,016 71,879 Large Cap Value Equity Fund................................. 14,910 -- 14,910 Mid-Cap Equity Fund......................................... 1,670 16,129 17,799 Mid-Cap Value Equity Fund................................... 8,090 15,245 23,335 Quality Growth Stock Fund................................... 529 -- 529 Small Cap Growth Stock Fund................................. 14,140 97,800 111,940 Small Cap Value Equity Fund................................. 13,487 141,539 155,026 Strategic Quantitative Equity Fund.......................... 12,192 588 12,780 Balanced Fund............................................... 3,711 10,492 14,203 Life Vision Aggressive Growth Fund.......................... 652 617 1,269 Life Vision Conservative Fund............................... 309 -- 309 Life Vision Growth and Income Fund.......................... 2,058 -- 2,058 Life Vision Moderate Growth Fund............................ 5,382 2,321 7,703 Life Vision Target Date 2015 Fund........................... 2 -- 2 Life Vision Target Date 2025 Fund........................... 2 -- 2 Life Vision Target Date 2035 Fund........................... 3 -- 3
- --------------- * Total distributions paid differ from the Statement of Changes in Net Assets because for tax purposes dividends are recognized when actually paid. Amounts designated as "--" are either $0 or have been rounded to $0. The tax character of distributions paid to shareholders during the period ended March 31, 2005 was as follows (in thousands):
Distributions Paid From ------------------------- Net Net Long Total Investment Term Capital Distributions Fund Income($) Gains($) Paid($)* - ---- ---------- ------------ ------------- Aggressive Growth Stock Fund................................ -- -- -- Capital Appreciation Fund................................... 2,919 26,372 29,291 Emerging Growth Stock Fund.................................. -- -- -- International Equity Fund................................... 4,175 -- 4,175 International Equity Index Fund............................. 8,680 -- 8,680 Large Cap Relative Value Fund............................... 14,777 18,982 33,759 Large Cap Value Equity Fund................................. 12,627 -- 12,627 Mid-Cap Equity Fund......................................... 987 -- 987 Mid-Cap Value Equity Fund................................... 1,946 -- 1,946 Quality Growth Stock Fund................................... 178 -- 178 Small Cap Growth Stock Fund................................. 33,850 71,394 105,244 Small Cap Value Equity Fund................................. 9,030 50,922 59,952 Strategic Quantitative Equity Fund.......................... 3,904 932 4,836 Balanced Fund............................................... 4,430 2,651 7,081 Life Vision Aggressive Growth Fund.......................... 8,680 -- 8,680
136 NOTES TO FINANCIAL STATEMENTS (continued) STI CLASSIC FUNDS March 31, 2006
Distributions Paid From ------------------------- Net Net Long Total Investment Term Capital Distributions Fund Income($) Gains($) Paid($)* - ---- ---------- ------------ ------------- Life Vision Conservative Fund............................... 492 -- 492 Life Vision Growth and Income Fund.......................... 142 1 143 Life Vision Moderate Growth Fund............................ 1,550 -- 1,550
- --------------- * Total distributions paid differ from the Statement of Changes in Net Assets because for tax purposes dividends are recognized when actually paid. Amounts designated as "--" are either $0 or have been rounded to $0. The tax character of distributions paid to shareholders during the year ended May 31, 2004 was as follows (in thousands):
Distributions paid from ----------------------------- Net Total Investment Net Long Term Total Taxable Return of Distributions Fund Income($) Capital Gains($) Distributions($) Capital($) Paid($)* ---- ---------- ---------------- ---------------- ---------- ------------- Aggressive Growth Stock Fund...................... -- -- -- -- -- Capital Appreciation Fund......................... -- -- -- -- -- Emerging Growth Stock Fund........................ -- -- -- -- -- International Equity Fund......................... 3,509 -- 3,509 -- 3,509 International Equity Index Fund................... 4,082 -- 4,082 -- 4,082 Large Cap Relative Value Fund..................... 7,461 -- 7,461 -- 7,461 Large Cap Value Equity Fund....................... 10,772 -- 10,772 -- 10,772 Mid-Cap Equity Fund............................... 922 -- 922 -- 922 Mid-Cap Value Equity Fund......................... 654 -- 654 -- 654 Small Cap Growth Stock Fund....................... -- -- -- -- -- Small Cap Value Equity Fund....................... 2,438 -- 2,438 -- 2,438 Strategic Quantitative Equity Fund................ 994 -- 994 -- 994 Balanced Fund..................................... 4,343 -- 4,343 -- 4,343 Life Vision Aggressive Growth Fund................ 124 -- 124 12 136 Life Vision Conservative Fund..................... 50 -- 50 -- 50 Life Vision Growth and Income Fund................ 1,035 -- 1,035 -- 1,035 Life Vision Moderate Growth Fund.................. 1,846 -- 1,846 -- 1,846
- --------------- * Total distributions paid differ from the Statement of Changes in Net Assets because for tax purposes dividends are recognized when actually paid. Amounts designated as "--" are either $0 or have been rounded to $0. As of March 31, 2006 the components of accumulated earnings (deficit) on a tax basis were as follows (in thousands):
Undistributed Undistributed Accumulated Ordinary Long Term Accumulated Distributions Capital and Income($) Capital Gains($) Earnings($) Payable($) Other Losses($)** ------------- ---------------- ----------- ------------- ----------------- Aggressive Growth Stock Fund.... -- -- -- -- (8,578) Capital Appreciation Fund....... 15,134 39,578 54,712 -- -- Emerging Growth Stock Fund...... -- -- -- -- (525) International Equity Fund....... 6,616 -- 6,616 -- (25,734) International Equity Index Fund.......................... 3,719 -- 3,719 -- (52,744) Large Cap Relative Value Fund... 19,947 51,873 71,820 -- -- Large Cap Value Equity Fund..... 11 -- 11 -- (30,146) Mid-Cap Equity Fund............. 143 4,696 4,839 -- -- Mid-Cap Value Equity Fund....... 10,520 5,819 16,339 -- -- Quality Growth Stock Fund....... -- -- -- -- (194,445) Small Cap Growth Stock Fund..... 15,457 52,014 67,471 -- (665) Total Unrealized Accumulated Appreciation Earnings (Depreciation)($)*** (Deficit)($) -------------------- ------------ Aggressive Growth Stock Fund.... 30,395 21,817 Capital Appreciation Fund....... 165,717 220,429 Emerging Growth Stock Fund...... 10,759 10,234 International Equity Fund....... 195,533 176,415 International Equity Index Fund.......................... 216,841 167,816 Large Cap Relative Value Fund... 267,062 338,882 Large Cap Value Equity Fund..... 114,943 84,808 Mid-Cap Equity Fund............. 59,696 64,535 Mid-Cap Value Equity Fund....... 21,142 37,481 Quality Growth Stock Fund....... 27,551 (166,894) Small Cap Growth Stock Fund..... 370,097 436,903
137 NOTES TO FINANCIAL STATEMENTS (continued) STI CLASSIC FUNDS March 31, 2006
Undistributed Undistributed Accumulated Ordinary Long Term Accumulated Distributions Capital and Income($) Capital Gains($) Earnings($) Payable($) Other Losses($)** ------------- ---------------- ----------- ------------- ----------------- Small Cap Value Equity Fund..... 26,284 64,964 91,248 -- -- Strategic Quantitative Equity Fund.......................... 1,418 6,098 7,516 -- -- Balanced Fund................... 2,428 4,053 6,481 -- -- Life Vision Aggressive Growth Fund.......................... 99 1,021 1,120 -- -- Life Vision Conservative Fund... 31 69 100 -- -- Life Vision Growth and Income Fund.......................... 40 2,609 2,649 -- -- Life Vision Moderate Growth Fund.......................... 395 2,551 2,946 -- -- Life Vision Target Date 2015 Fund.......................... -- 3 3 -- -- Life Vision Target Date 2025 Fund.......................... 1 1 2 -- -- Life Vision Target Date 2035 Fund.......................... 1 4 5 -- -- Total Unrealized Accumulated Appreciation Earnings (Depreciation)($)*** (Deficit)($) -------------------- ------------ Small Cap Value Equity Fund..... 234,779 326,027 Strategic Quantitative Equity Fund.......................... 12,836 20,352 Balanced Fund................... 8,174 14,655 Life Vision Aggressive Growth Fund.......................... 10,110 11,230 Life Vision Conservative Fund... 219 319 Life Vision Growth and Income Fund.......................... 17,077 19,726 Life Vision Moderate Growth Fund.......................... 15,961 18,907 Life Vision Target Date 2015 Fund.......................... 11 14 Life Vision Target Date 2025 Fund.......................... 18 20 Life Vision Target Date 2035 Fund.......................... 17 22
- --------------- ** As of the latest tax year end of March 31, 2006, the following Funds had net capital loss carryovers to offset future net capital gains, if any, to the extent provided by the Treasury regulations (in thousands). To the extent that these carryovers are used to offset future gains, it is probable that the gains so offset will not be distributed to shareholders:
Expires ------------------------------------------------------------------- 2007($) 2009($) 2010($) 2011($) 2012($) 2013($) 2014($) ------- ------- ------- ------- ------- ------- ------- Aggressive Growth Stock Fund............................ -- -- 3,369 -- -- 1,399 2,683 Emerging Growth Stock Fund.............................. -- -- -- -- -- 525 -- International Equity Fund............................... -- -- -- 8,547 17,051 -- -- International Equity Index Fund......................... -- -- 23,637 16,546 9,207 3,126 -- Large Cap Value Equity Fund............................. -- 1,204 -- 28,942 -- -- -- Quality Growth Stock Fund............................... -- 132,265 52,653 9,527 -- -- -- Small Cap Growth Stock Fund............................. 665 -- -- -- -- -- --
As of March 31, 2006, the Aggressive Growth Stock Fund has additional capital loss carryforwards, subject to any applicable limitations on availability, to offset future gains, if any, as the successor of a merger with the Information and Technology Fund. This amount is $3,369,014 expiring in 2010. During the year ended March 31, 2006, the Aggressive Growth Stock Fund, Emerging Growth Stock Fund, International Equity Fund, International Equity Index Fund, Large Cap Value Equity Fund, Mid-Cap Equity Fund, Quality Growth Stock Fund, Small Cap Growth Fund, Life Vision Aggressive Growth Fund and Life Vision Growth and Income Fund, utilized $2,683, $634, $47,966, $6,424, $56,312, $11,269, $16,770, $665, $52 and $1,183 in capital loss carryforwards, respectively, (in thousands). Net Capital Losses incurred after October 31, and within the taxable year are deemed to arise on the first business day of the Funds' next taxable year. The Aggressive Growth Stock Fund, International Equity Fund and International Equity Index Fund have incurred and will elect to defer $1,127, $136 and $228, respectively, (in thousands). *** The differences between book-basis and tax-basis unrealized appreciation (depreciation) is attributable primarily to: tax deferral of losses on wash sales, the difference between book and tax amortization methods for premium and market discount, the realization for tax purposes of unrealized gains/losses on investments in passive foreign investment companies, and the return of capital adjustments from real estate investment trusts. 7. Risks The International Equity and International Equity Index Funds invest in securities of foreign issuers in various countries. Investments in securities of foreign issuers carry certain risks not ordinarily associated with investments in securities of U.S. issuers. These risks include future political and economic developments, and the possible imposition of exchange controls or other foreign governmental laws and restrictions. In addition, with respect to certain countries, there is a possibility of expropriation of assets, confiscatory taxation, political or social instability or diplomatic developments, which could adversely affect investments in those countries. Emerging market countries are countries that the World Bank or the United Nations considers to be emerging or developing. Emerging markets may be more likely to experience political turmoil or rapid changes in market or economic conditions than more developed countries. In addition, the financial stability of issuers, including governments, in emerging market countries may be more precarious than in other countries. As a 138 NOTES TO FINANCIAL STATEMENTS (continued) STI CLASSIC FUNDS March 31, 2006 result, there will tend to be a decreased risk of price volatility associated with these Fund's investments in emerging market countries, which may be magnified by currency fluctuations relative to the U.S. dollar. 8. Securities Lending The Capital Appreciation Fund, International Equity Fund, International Equity Index Fund, Large Cap Relative Value Fund, Large Cap Value Equity Fund, Mid-Cap Equity Fund, Mid-Cap Value Equity Fund, Quality Growth Stock Fund, Small Cap Growth Stock Fund, Small Cap Value Equity Fund and Balanced Fund may lend portfolio securities to brokers, dealers and other financial organizations that meet capital and other credit requirements or other criteria established by the Trust's Board. These loans may not exceed either (i) 50% of the sum of the market value of all securities of the Fund and the market value of the loan collateral or (ii) 33.33% of the total market value of all securities of the Fund. No Fund will lend portfolio securities to its investment adviser, sub-adviser, or its affiliates unless it has applied for and received specific authority to do so from the Securities and Exchange Commission. Loans of portfolio securities will be fully collateralized by cash, letters of credit or U.S. government securities. The value of the collateral is at least 100% of the market value of the securities loaned. However, due to market fluctuations during the day, the value of securities loaned on a particular day may, during the course of the day, exceed the value of collateral. On each business day, the amount of collateral is adjusted based on the prior day's market fluctuations and the current day's lending activity. Income from lending activity is determined by the amount of interest earned on collateral, less any amounts payable to the borrowers of the securities and the lending agent. Lending securities involves certain risks, including the risk that the Fund may be delayed or prevented from recovering the collateral if the borrower fails to return the securities. A fee will be obtained from the borrower if letters of credit or U.S. government securities are used as collateral. Cash collateral received in connection with securities lending is invested in the CSFB Enhanced Liquidity Portfolio (the "Portfolio"). This investment may consist of money market mutual funds registered under the Investment Company Act of 1940 and money market instruments including commercial paper, repurchase agreements, U.S. Treasury Bills and U.S. Agency Obligations. At March 31, 2006, the Portfolio was invested in certificates of deposit, repurchase agreements, asset backed securities and corporate bonds (with interest rates ranging from 4.58% to 5.09% and maturity dates ranging from 04/03/06 to 04/17/17). The Funds paid fees for security lending for the year ended March 31, 2006, which have been netted against the Securities Lending Income on the Statements of Operations. These fees are presented below (in thousands):
Fees($) ------- Capital Appreciation Fund................................... 109 International Equity Fund................................... 148 International Equity Index Fund............................. 159 Large Cap Relative Value Fund............................... 93 Large Cap Value Equity Fund................................. 43 Mid-Cap Equity Fund......................................... 50 Mid-Cap Value Equity Fund................................... 18 Quality Growth Stock Fund................................... 4 Small Cap Growth Stock Fund................................. 301 Small Cap Value Equity Fund................................. 36 Balanced Fund............................................... 44
9. Subsequent Events On April 3, 2006, the Small Cap Quantitative Fund began offering I, A and C Shares. This Fund offering was approved by the Board on November 18, 2005. At the regular meeting of the Board on February 14, 2006, the 139 NOTES TO FINANCIAL STATEMENTS (continued) STI CLASSIC FUNDS March 31, 2006 Board voted to change the name of the Strategic Quantitative Equity Fund to Large Cap Quantitative Fund effective April 17, 2006. 10. Other Federal Tax Information (Unaudited) For corporate shareholders, the following percentage of the total ordinary income distributions paid by the Funds during the year ended March 31, 2006 qualify for the corporate dividends received deductions:
Dividend Received Deduction(%) ----------------- Capital Appreciation Fund................................... 100.00 Large Cap Relative Value Fund............................... 73.76 Large Cap Value Equity Fund................................. 100.00 Mid-Cap Equity Fund......................................... 100.00 Mid-Cap Value Equity Fund................................... 22.58 Quality Growth Stock Fund................................... 100.00 Small Cap Value Equity Fund................................. 41.17 Strategic Quantitative Equity Fund.......................... 10.56 Balanced Fund............................................... 25.44 Life Vision Aggressive Growth Fund.......................... 63.98 Life Vision Conservative Fund............................... 4.30 Life Vision Growth and Income Fund.......................... 37.29 Life Vision Moderate Growth Fund............................ 10.94 Life Vision Target Date 2015................................ 26.29 Life Vision Target Date 2025................................ 45.74 Life vision Target Date 2035................................ 34.93
In addition, the Funds may elect to pass through foreign taxes paid by the Funds to its shareholders under Code 853 of the Internal Revenue Code. For the year ended March 31, 2006, the International Equity Fund and International Equity Index Fund elected to pass through foreign taxes of $1,387 and $1,574, respectively, (in thousands). For the year ended March 31, 2006, the following Funds paid qualified dividend income:
Qualified Dividend Income(%) ------------------ Capital Appreciation........................................ 100.00 International Equity Fund................................... 62.51 International Equity Index Fund............................. 50.85 Large Cap Relative Value Fund............................... 73.62 Large Cap Value Equity Fund................................. 100.00 Mid-Cap Equity Fund......................................... 100.00 Mid-Cap Value Equity Fund................................... 22.02 Quality Growth Stock Fund................................... 100.00 Small Cap Value Equity Fund................................. 41.19 Strategic Quantitative Equity Fund.......................... 9.87 Balanced Fund............................................... 25.12 Life Vision Aggressive Growth Fund.......................... 57.13 Life Vision Conservative Fund............................... 3.95 Life Vision Growth and Income Fund.......................... 32.80 Life Vision Moderate Growth Fund............................ 10.96 Life Vision Target Date 2015................................ 20.94 Life Vision Target Date 2025................................ 42.77 Life Vision Target Date 2035................................ 29.84
140 REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM STI CLASSIC FUNDS March 31, 2006 To the Board of Trustees and Shareholders of STI Classic Funds: In our opinion, the accompanying statements of assets and liabilities, including the schedules of portfolio investments, and the related statements of operations and of changes in net assets and the financial highlights present fairly, in all material respects, the financial position of Aggressive Growth Stock Fund, Capital Appreciation Fund, Emerging Growth Stock Fund, International Equity Fund, International Equity Index Fund, Large Cap Relative Value Fund (formerly the Growth and Income Fund), Large Cap Value Equity Fund (formerly the Value Income Stock Fund), Mid-Cap Equity Fund, Mid-Cap Value Equity Fund, Quality Growth Stock Fund (formerly the Tax Sensitive Growth Stock Fund), Small Cap Growth Stock Fund, Small Cap Value Equity Fund, Strategic Quantitative Equity Fund, Balanced Fund, Life Vision Aggressive Growth Fund, Life Vision Conservative Fund, Life Vision Growth and Income Fund, Life Vision Moderate Growth Fund, Life Vision Target Date 2015 Fund, Life Vision Target Date 2025 Fund and Life Vision Target Date 2035 Fund (twenty-one of the fifty-three funds constituting STI Classic Funds, hereafter referred to as the "Funds") at March 31, 2006, the results of each of their operations, the changes in each of their net assets and the financial highlights for each of the periods indicated except as discussed below where Funds were audited by other independent accountants, in conformity with accounting principles generally accepted in the United States of America. These financial statements and financial highlights (hereafter referred to as "financial statements") are the responsibility of the Funds' management; our responsibility is to express an opinion on these financial statements based on our audits. We conducted our audits of these financial statements in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting principles used and significant estimates made by management, and evaluating the overall financial statement presentation. We believe that our audits, which included confirmation of securities at March 31, 2006, by correspondence with the custodians and brokers, provide a reasonable basis for our opinion. The financial highlights for the year ended May 31, 2001 were audited by other independent accountants who have ceased operations. Those independent accountants expressed an unqualified opinion on those financial statements in their report dated July 18, 2001. PricewaterhouseCoopers LLP Philadelphia, Pennsylvania May 25, 2006 141 TRUSTEES AND OFFICERS OF THE STI CLASSIC FUNDS (UNAUDITED) Information pertaining to the trustees and officers of the Trust is set forth below. Trustees who are not deemed to be "interested persons" of the Trust as defined in the 1940 Act are referred to as "Independent Trustees." Trustees who are deemed to be "interested persons" of the Trust are referred to as "Interested Trustees." Messrs. Courts and Ridley are trustees who may be deemed to be "interested persons" of the Trust. - --------------------------------------------------------------------------------
NUMBER OF PORTFOLIOS IN TERM OF THE STI POSITION(S) OFFICE AND PRINCIPAL FUND COMPLEX OTHER NAME, ADDRESS, HELD WITH LENGTH OF OCCUPATION(S) OVERSEEN BY DIRECTORSHIPS DATE OF BIRTH THE GROUP TIME SERVED DURING THE PAST 5 YEARS TRUSTEE HELD BY TRUSTEE - ------------------------------------------------------------------------------------------------------------------------------------ INTERESTED TRUSTEES*: Richard W. Courts, II Trustee Indefinite; Chairman, Atlantic Investment 60 Genuine Parts Company; 3435 Stelzer Road since November Company Piedmont Medical Center; Columbus, OH 43219 2001 SunTrust Bank DOB 01/18/36 - ------------------------------------------------------------------------------------------------------------------------------------ Clarence H. Ridley Trustee Indefinite; Chairman, Haverty Furniture 60 Crawford & Co. 3435 Stelzer Road since November Companies; Partner, King and Columbus, OH 43219 2001 Spaulding LLP (law firm) (1977 DOB 06/03/42 to 2000) - ------------------------------------------------------------------------------------------------------------------------------------ INDEPENDENT TRUSTEES: Thomas Gallagher Trustee Indefinite; President, CEO, Genuine Parts 60 Genuine Parts Company; 3435 Stelzer Road since May 2000 Company Oxford Industries, Inc. Columbus, OH 43219 DOB 11/25/47 - ------------------------------------------------------------------------------------------------------------------------------------ F. Wendell Gooch Trustee Indefinite; Retired 60 SEI Family of Funds 3435 Stelzer Road since May 1992 Columbus, OH 43219 DOB 12/03/32 - ------------------------------------------------------------------------------------------------------------------------------------ Sidney E. Harris Trustee Indefinite; Professor (since 2004) and Dean 60 ServiceMaster Company; Total 3435 Stelzer Road since November (1997-2004), J. Mack Robinson System Services, Inc.; Columbus, OH 43219 2004 College of Business, Georgia Transamerica Investors, Inc. DOB 07/21/49 State University (13 Mutual Funds) - ------------------------------------------------------------------------------------------------------------------------------------ Warren Y. Jobe Trustee Indefinite; Retired. EVP, Georgia Power 60 WellPoint, Inc.; UniSource 3435 Stelzer Road since November Company and SVP, Southern Energy Corp.; HomeBanc Corp. Columbus, OH 43219 2004 Company (1998-2001) DOB 11/12/40 - ------------------------------------------------------------------------------------------------------------------------------------ Connie D. McDaniel Trustee Indefinite; Vice President and Controller, 60 None 3435 Stelzer Road since May 2005 The Coca-Cola Company Columbus, OH 43219 DOB 04/10/58 - ------------------------------------------------------------------------------------------------------------------------------------ James O. Robbins Trustee Indefinite; Retired. President, CEO, Cox 60 Cox Communications; Humana, 3435 Stelzer Road since May 2000 Communications, Inc. Inc. Columbus, OH 43219 (1985-2005) DOB 07/04/42 - ------------------------------------------------------------------------------------------------------------------------------------ Charles D. Winslow Trustee Indefinite; Retired. Formerly Partner, 60 None 3435 Stelzer Road since November Accenture (consulting) Columbus, OH 43219 2004 DOB 07/13/35 - ------------------------------------------------------------------------------------------------------------------------------------
* Mr. Courts may be deemed an Interested Trustee because of his directorships with affiliates of the Investment Adviser. Mr. Ridley may be deemed an Interested Trustee because of a material business relationship with the parent of the Investment Adviser. 142 TRUSTEES AND OFFICERS OF THE STI CLASSIC FUNDS (UNAUDITED) (continued)
TERM OF POSITION(S) OFFICE AND NAME, ADDRESS, HELD WITH LENGTH OF PRINCIPAL OCCUPATION(S) DATE OF BIRTH THE GROUP TIME SERVED DURING THE PAST 5 YEARS - -------------------------------------------------------------------------------------------------------------------------------- OFFICERS R. Jeffrey Young President One-year; Senior Vice President, Relationship Management, BISYS 3435 Stelzer Road since July 2004 Fund Services (since 2002); Vice President, Client Columbus, OH 43219 Services, BISYS Fund Services (1997-2002) DOB 08/22/64 - -------------------------------------------------------------------------------------------------------------------------------- Deborah A. Lamb Executive Vice One-year; Chief Compliance Officer and Managing Director, Trusco 50 Hurt Plaza President, since September 2004; Capital Management, Inc. (since 2003); President, Atlanta, GA 30303 Assistant since November 2003; Investment Industry Consultants, LLC (2000-2003) DOB 10/02/52 Secretary; Chief since August 2004 Compliance Officer (respectively) - -------------------------------------------------------------------------------------------------------------------------------- Joel B. Engle Treasurer, Chief One-year; Director, Fund Administration, BISYS Fund Services 3435 Stelzer Road Financial Officer since May 2006* (since 2006); Self-employed, retail business owner Columbus, OH 43219 (2003-2006); Vice President, Financial Services, BISYS DOB 10/31/65 Fund Services (1998-2003) - -------------------------------------------------------------------------------------------------------------------------------- Cynthia J. Surprise Secretary and One-year; Senior Counsel, Legal Services, BISYS Fund Services 3435 Stelzer Road Chief Legal since February 2005 (since 2004); Director and Counsel, Investors Bank & Columbus, OH 43219 Officer Trust Company (1999-2004) DOB 07/08/46 - -------------------------------------------------------------------------------------------------------------------------------- Alaina V. Metz Assistant One-year; Vice President, Blue Sky Compliance, BISYS Fund Services 3435 Stelzer Road Secretary Since July 2004 (since 2002); Chief Administrative Officer, Blue Sky Columbus, OH 43219 Compliance, BISYS Fund Services (1995-2002) DOB 04/07/67 - -------------------------------------------------------------------------------------------------------------------------------- Jennifer English Assistant One-year; Assistant Counsel, Legal Services, BISYS Fund Services 3435 Stelzer Road Secretary Since November 2005 (since 2005); Assistant Counsel, PFPC, Inc. (2002-2005); Columbus, OH 43219 Associate Legal Product Manager, Fidelity Investments DOB 03/05/72 (2001); Regulatory Specialist, Wellington Management Company, LLP (1998-2001) - --------------------------------------------------------------------------------------------------------------------------------
* Elected at the Board of Trustee meeting May 9, 2006. The Trust's Statement of Additional Information includes additional information about the Trust's trustees and officers. To request your free copy of the Statement of Additional Information, call toll free 1-888-STI-FUND. 143 ADDITIONAL INFORMATION (UNAUDITED) EXPENSE EXAMPLES As a shareholder of the STI Classic Funds, you incur two types of costs: (1) transaction costs, including sales charges (loads) on purchases and redemption fees; (2) ongoing costs, including management fees, 12b-1 distribution and/or service fees and other Fund expenses. These examples are intended to help you understand your ongoing costs (in dollars) of investing in the STI Classic Funds and to compare these costs with the ongoing costs of investing in other mutual funds. These examples are based on an investment of $1,000 invested at the beginning of the period and held for the entire period from October 1, 2005 through March 31, 2006. Actual Expenses The table below provides information about actual account values and actual expenses. You may use the information below, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number in the table under the heading entitled "Expenses Paid During Period" to estimate the expenses you paid on your account during this period.
Beginning Ending Expense Paid Expense Ratio Account Value Account Value During Period* During Period** 10/01/05 3/31/06 10/01/05-3/31/06 10/01/05-3/31/06 ------------- ------------- ---------------- ---------------- Aggressive Growth Stock Fund........ I Shares $1,000.00 $1,138.60 $ 6.24 1.17% A Shares 1,000.00 1,137.50 7.83 1.47 C Shares 1,000.00 1,133.10 11.54 2.17 Capital Appreciation Fund........... I Shares 1,000.00 1,080.40 5.13 0.99 A Shares 1,000.00 1,079.00 6.69 1.29 C Shares 1,000.00 1,075.40 10.30 1.99 Emerging Growth Stock Fund.......... I Shares 1,000.00 1,209.20 6.66 1.21 A Shares 1,000.00 1,206.60 8.25 1.50 C Shares 1,000.00 1,203.60 12.09 2.20 International Equity Fund........... I Shares 1,000.00 1,137.40 6.87 1.29 A Shares 1,000.00 1,136.10 8.47 1.59 C Shares 1,000.00 1,131.70 12.17 2.29 International Equity Index Fund..... I Shares 1,000.00 1,147.70 3.53 0.66 A Shares 1,000.00 1,146.30 5.08 0.95 C Shares 1,000.00 1,141.00 8.81 1.65 Large Cap Relative Value Fund....... I Shares 1,000.00 1,075.90 4.55 0.88 A Shares 1,000.00 1,075.10 5.85 1.13 C Shares 1,000.00 1,075.90 9.70 1.88 Large Cap Value Equity Fund......... I Shares 1,000.00 1,106.80 4.46 0.85 A Shares 1,000.00 1,106.20 6.04 1.15 C Shares 1,000.00 1,101.40 9.69 1.85 Mid-Cap Equity Fund................. I Shares 1,000.00 1,076.50 5.64 1.09 A Shares 1,000.00 1,074.80 7.19 1.39 C Shares 1,000.00 1,070.50 10.79 2.09 Mid-Cap Value Equity Fund........... I Shares 1,000.00 1,126.40 5.73 1.08 A Shares 1,000.00 1,124.30 7.31 1.38 C Shares 1,000.00 1,120.50 11.00 2.08 Quality Growth Stock Fund........... I Shares 1,000.00 1,032.70 4.97 0.98 A Shares 1,000.00 1,031.70 6.53 1.29 C Shares 1,000.00 1,027.70 10.06 1.99 Small Cap Growth Stock Fund......... I Shares 1,000.00 1,155.80 6.23 1.16 A Shares 1,000.00 1,154.00 7.84 1.46 C Shares 1,000.00 1,149.70 11.58 2.16 Small Cap Value Equity Fund......... I Shares 1,000.00 1,180.70 6.52 1.20 A Shares 1,000.00 1,179.10 7.88 1.45 C Shares 1,000.00 1,179.30 7.88 1.45
144 ADDITIONAL INFORMATION (UNAUDITED) (continued)
Beginning Ending Expense Paid Expense Ratio Account Value Account Value During Period* During Period** 10/01/05 3/31/06 10/01/05-3/31/06 10/01/05-3/31/06 ------------- ------------- ---------------- ---------------- Strategic Quantitative Equity Fund.............................. I Shares $1,000.00 $1,046.00 $ 4.85 0.95% A Shares 1,000.00 1,044.50 6.12 1.20 C Shares 1,000.00 1,040.80 9.92 1.95 Balanced Fund....................... I Shares 1,000.00 1,048.70 4.85 0.95 A Shares 1,000.00 1,046.90 6.28 1.23 C Shares 1,000.00 1,043.30 9.93 1.95 Life Vision Aggressive Growth Fund.............................. I Shares 1,000.00 1,094.90 0.99 0.19 A Shares 1,000.00 1,093.40 2.56 0.49 B Shares 1,000.00 1,092.20 4.90 0.94 C Shares 1,000.00 1,089.70 6.20 1.19 Life Vision Conservative Fund....... I Shares 1,000.00 1,025.50 1.01 0.20 A Shares 1,000.00 1,023.80 2.47 0.49 B Shares 1,000.00 1,022.20 4.74 0.94 C Shares 1,000.00 1,019.40 5.99 1.19 Life Vision Growth and Income Fund.............................. I Shares 1,000.00 1,073.40 0.93 0.18 A Shares 1,000.00 1,071.00 2.48 0.48 B Shares 1,000.00 1,068.30 4.80 0.93 C Shares 1,000.00 1,068.10 6.03 1.17 Life Vision Moderate Growth Fund.... I Shares 1,000.00 1,052.20 0.87 0.17 A Shares 1,000.00 1,050.30 2.40 0.47 B Shares 1,000.00 1,048.00 4.70 0.92 C Shares 1,000.00 1,047.30 5.97 1.17 Life Vision Target Date 2015........ I Shares(a) 1,000.00 1,099.40 1.05 0.20 Life Vision Target Date 2025........ I Shares(b) 1,000.00 1,123.30 1.06 0.20 Life Vision Target Date 2035........ I Shares(c) 1,000.00 1,101.40 1.05 0.20
- --------------- * Expenses are equal to the average account value times the Fund's annualized expense ratio multiplied by the number of days in the most recent fiscal half-year divided by the number of days in the fiscal year. ** Annualized. (a) Information shown reflects values for the period from October 12, 2005 (commencement of operations) to March 31, 2006 and has been calculated using expense ratios and rates of return for the same period. (b) Information shown reflects values for the period from October 21, 2005 (commencement of operations) to March 31, 2006 and has been calculated using expense ratios and rates of return for the same period. (c) Information shown reflects values for the period from November 2, 2005 (commencement of operations) to March 31, 2006 and has been calculated using expense ratios and rates of return for the same period. Hypothetical Example The table below provides information about hypothetical account values and hypothetical expenses based on each STI Classic Funds' actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Fund's actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of other funds. Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transactional costs, such as sales charges (loads), redemption fees, or exchange fees. Therefore, the table is useful in comparing ongoing costs only, and will not help you determine the relative total costs of 145 ADDITIONAL INFORMATION (UNAUDITED) (continued) owning different funds. In addition, if these transactional costs were included, your costs would have been higher.
Beginning Ending Expense Paid Expense Ratio Account Value Account Value During Period* During Period** 10/01/05 3/31/06 10/01/05-3/31/06 10/01/05-3/31/06 ------------- ------------- ---------------- ---------------- Aggressive Growth Stock Fund........ I Shares $1,000.00 $1,019.10 $ 5.89 1.17% A Shares 1,000.00 1,017.60 7.39 1.47 C Shares 1,000.00 1,014.11 10.90 2.17 Capital Appreciation Fund........... I Shares 1,000.00 1,020.00 4.99 0.99 A Shares 1,000.00 1,018.50 6.49 1.29 C Shares 1,000.00 1,015.01 10.00 1.99 Emerging Growth Stock Fund.......... I Shares 1,000.00 1,018.90 6.09 1.21 A Shares 1,000.00 1,017.45 7.54 1.50 C Shares 1,000.00 1,013.96 11.05 2.20 International Equity Fund........... I Shares 1,000.00 1,018.50 6.49 1.29 A Shares 1,000.00 1,017.00 8.00 1.59 C Shares 1,000.00 1,013.51 11.50 2.29 International Equity Index Fund..... I Shares 1,000.00 1,021.64 3.33 0.66 A Shares 1,000.00 1,020.19 4.78 0.95 C Shares 1,000.00 1,016.70 8.30 1.65 Large Cap Relative Value Fund....... I Shares 1,000.00 1,020.54 4.43 0.88 A Shares 1,000.00 1,019.30 5.69 1.13 C Shares 1,000.00 1,015.56 9.45 1.88 Large Cap Value Equity Fund......... I Shares 1,000.00 1,020.69 4.28 0.85 A Shares 1,000.00 1,019.20 5.79 1.15 C Shares 1,000.00 1,015.71 9.30 1.85 Mid-Cap Equity Fund................. I Shares 1,000.00 1,024.28 0.66 0.13 A Shares 1,000.00 1,018.00 6.99 1.39 C Shares 1,000.00 1,014.51 10.50 2.09 Mid-Cap Value Equity Fund........... I Shares 1,000.00 1,019.55 5.44 1.08 A Shares 1,000.00 1,018.05 6.94 1.38 C Shares 1,000.00 1,014.56 10.45 2.08 Quality Growth Stock Fund........... I Shares 1,000.00 1,020.04 4.94 0.98 A Shares 1,000.00 1,018.50 6.49 1.29 C Shares 1,000.00 1,015.01 10.00 1.99 Small Cap Growth Stock Fund......... I Shares 1,000.00 1,019.15 5.84 1.16 A Shares 1,000.00 1,017.65 7.34 1.46 C Shares 1,000.00 1,014.16 10.85 2.16 Small Cap Value Equity Fund......... I Shares 1,000.00 1,018.95 6.04 1.20 A Shares 1,000.00 1,017.70 7.29 1.45 C Shares 1,000.00 1,017.70 7.29 1.45 Strategic Quantitative Equity Fund.............................. I Shares 1,000.00 1,020.19 4.78 0.95 A Shares 1,000.00 1,018.95 6.04 1.20 C Shares 1,000.00 1,015.21 9.80 1.95 Balanced Fund....................... I Shares 1,000.00 1020.19 4.78 0.95 A Shares 1,000.00 1018.80 6.19 1.23 C Shares 1,000.00 1015.21 9.80 1.95 Life Vision Aggressive Growth Fund.............................. I Shares 1,000.00 1,023.98 0.96 0.19 A Shares 1,000.00 1,022.49 2.47 0.49 B Shares 1,000.00 1,020.24 4.73 0.94 C Shares 1,000.00 1,019.00 5.99 1.19 Life Vision Conservative Fund....... I Shares 1,000.00 1,023.93 1.01 0.20 A Shares 1,000.00 1,022.49 2.47 0.49 B Shares 1,000.00 1,020.24 4.73 0.94 C Shares 1,000.00 1,019.00 5.99 1.19
146 ADDITIONAL INFORMATION (UNAUDITED) (continued)
Beginning Ending Expense Paid Expense Ratio Account Value Account Value During Period* During Period** 10/01/05 3/31/06 10/01/05-3/31/06 10/01/05-3/31/06 ------------- ------------- ---------------- ---------------- Life Vision Growth and Income Fund.............................. I Shares $1,000.00 $1,024.03 $ 0.91 0.18% A Shares 1,000.00 1,022.54 2.42 0.48 B Shares 1,000.00 1,020.29 4.68 0.93 C Shares 1,000.00 1,019.10 5.89 1.17 Life Vision Moderate Growth Fund.... I Shares 1,000.00 1,024.08 0.86 0.17 A Shares 1,000.00 1,022.59 2.37 0.47 B Shares 1,000.00 1,020.34 4.63 0.92 C Shares 1,000.00 1,019.10 5.89 1.17 Life Vision Target Date 2015........ I Shares(a) 1,000.00 1,023.93 1.01 0.20 Life Vision Target Date 2025........ I Shares(b) 1,000.00 1,023.93 1.01 0.20 Life Vision Target Date 2035........ I Shares(c) 1,000.00 1,023.93 1.01 0.20
- --------------- * Expenses are equal to the average account value times the Fund's annualized expense ratio multiplied by the number of days in the most recent fiscal half-year divided by the number of days in the fiscal year. ** Annualized. (a) Information shown reflects values for the period from October 12, 2005 (commencement of operations) to March 31, 2006 and has been calculated using expense ratios and rates of return for the same period. (b) Information shown reflects values for the period from October 21, 2005 (commencement of operations) to March 31, 2006 and has been calculated using expense ratios and rates of return for the same period. (c) Information shown reflects values for the period from November 2, 2005 (commencement of operations) to March 31, 2006 and has been calculated using expense ratios and rates of return for the same period. PROXY VOTING Information regarding the policies and procedures that the Funds use to determine how to vote proxies relating to portfolio securities is available without charge, upon request, by calling 1-888-STI-FUND. The information also is included in the Funds' Statement of Additional Information, which is available on the Funds' website at www.sticlassicfunds.com and on the Securities and Exchange Commission's website at www.sec.gov. Information relating to how each Fund voted proxies relating to portfolio securities held during the most recent twelve months ended June 30 is available on the Funds' website at www.sticlassicfunds.com and on the Securities and Exchange Commission's website at www.sec.gov. PORTFOLIO HOLDINGS INFORMATION The Funds file a complete list of their portfolio holdings with the Securities and Exchange Commission for the first and third quarters of each fiscal year on Form N-Q. Forms N-Q are available free of charge on the Securities and Exchange Commission's website at www.sec.gov. You may also review or, for a fee, copy those documents by visiting the Securities and Exchange Commission's Public Reference Room in Washington, D.C. Information on the operation of the Public Reference Room may be obtained by calling the Securities and Exchange Commission at 1-800-SEC-0330. 147 INVESTMENT ADVISER: Trusco Capital Management, Inc. This information must be preceded or accompanied by a current prospectus for each Fund described. An investor should consider the Fund's investment objectives, risks, charges and expenses carefully before investing or sending money. This and other important information about STI Classic Funds can be found in the Fund's prospectus. For additional information, please call 1-888-STI-FUND, or visit www.sticlassicfunds.com. Please read the prospectus carefully before investing. DISTRIBUTOR: BISYS Fund Services Limited Partnership NOT FDIC INSURED - NO BANK GUARANTEE - MAY LOSE VALUE STI Classic Funds STI-AE-0306 05/06 2006 ANNUAL REPORT BOND AND MONEY MARKET FUNDS MARCH 31, 2006 STI CLASSIC FUNDS TABLE OF CONTENTS STI CLASSIC BOND AND MONEY MARKET FUNDS ANNUAL REPORT March 31, 2006 Letter to Shareholders ................................................... 1 MANAGEMENT DISCUSSION AND ANALYSIS BOND FUNDS: Core Bond Fund ........................................................ 3 Florida Tax-Exempt Bond Fund .......................................... 5 Georgia Tax-Exempt Bond Fund .......................................... 7 High Income Fund ...................................................... 9 High Quality Bond Fund ................................................ 11 Intermediate Bond Fund ................................................ 13 Investment Grade Bond Fund ............................................ 15 Investment Grade Tax-Exempt Bond Fund ................................. 17 Limited Duration Fund ................................................. 19 Limited-Term Federal Mortgage Securities Fund ......................... 21 Maryland Municipal Bond Fund .......................................... 23 North Carolina Tax-Exempt Bond Fund ................................... 25 Seix High Yield Fund .................................................. 27 Short-Term Bond Fund .................................................. 29 Short-Term U.S. Treasury Securities Fund .............................. 31 Strategic Income Fund ................................................. 33 Total Return Bond Fund ................................................ 35 U.S. Government Securities Fund ....................................... 37 U.S. Government Securities Ultra-Short Bond Fund ...................... 39 Ultra-Short Bond Fund ................................................. 41 Virginia Intermediate Municipal Bond Fund ............................. 43 Virginia Municipal Bond Fund .......................................... 45 MONEY MARKET FUNDS: Prime Quality Money Market Fund ....................................... 47 Tax-Exempt Money Market Fund .......................................... 48 U.S. Government Securities Money Market Fund .......................... 49 U.S. Treasury Money Market Fund ....................................... 50 Virginia Tax-Free Money Market Fund ................................... 51 Schedules of Portfolio Investments ....................................... 53 Statements of Assets and Liabilities ..................................... 168 Statements of Operations ................................................. 173 Statements of Changes in Net Assets ...................................... 178 Financial Highlights ..................................................... 206 Notes to Financial Statements ............................................ 219 Report of Independent Registered Public Accounting Firm .................. 240 Trustees and Officers of the STI Classic Funds ........................... 241 Additional Information ................................................... 243
LETTER TO SHAREHOLDERS March 31, 2006 Dear Valued STI Classic Funds Shareholder, Another fiscal year has come to a successful close. The environment was challenging, and the path over the past twelve months was uneven, but both the economy and financial markets navigated the setbacks and emerged with positive results. The STI Classic Funds performed very well during these often trying times, with peer group outperformance by 27 stock and bond funds across a number of diverse styles and asset classes. This outperformance helped achieve competitive returns with well-diversified portfolios. We will highlight some key developments in the economy and financial markets, but would first like to thank you for your confidence and support in choosing the STI Classic Funds to help grow your investments. We greatly value the opportunity to serve you and continue to strive to meet your expectations every day. The overall economic backdrop for the markets was positive despite natural, economic, and financial "headwinds." Real Gross Domestic Product(1) (GDP) grew 3.5% for the year ended March 2006, paced by strong double-digit gains in business capital spending. "Headline" inflation, as measured by the Consumer Price Index, increased 3.4% during the same period, which was 1% higher than in the previous fiscal year. Energy prices, as everyone is painfully aware, were largely responsible for the acceleration. However, if energy and food are taken out of the measure, as the Federal Reserve ("the Fed") prefers to do in setting monetary policy, the resulting core inflation rate was just 2.1%. Unfortunately, the economy did not grow at an "average" pace for the entire year. The tragedies of hurricanes Katrina and Rita were a terrible blow in both sociological and economic terms. Though the storms occurred in the third quarter of 2005, the statistical impact of the devastation was concentrated in the fourth quarter, when growth slowed to an anemic 1.7%. The damage to the energy infrastructure from the storm helped drive prices sharply higher, draining discretionary dollars from consumer wallets and business bottom lines. Energy prices retreated somewhat during the fourth quarter, but then moved higher in the first quarter. Fed policy was another headwind for the economy. The central bank raised short-term interest rates fifteen consecutive times since June 2004, culminating in the 4.75% fed funds rate on March 31, 2006. During most of this time, the impact of the tightening was limited to short-term rates, but after the yield curve flattened at the end of 2005 (short and long rate roughly equal), long-term rates, such as home mortgage rates, also moved higher, making borrowing more expensive. The continued growth in the economy, combined with reasonable valuations, helped equities move broadly higher during the fiscal year. The S&P 500 Index returned 11.72%, including dividends, during the twelve months ended March 31, 2006, compared with 6.69% in the previous year. Energy stocks, boosted by the increase in oil prices, out performed other major sectors in the index for the year. In addition, above average gains were posted in the financial, telecom, and technology sectors. Consumer stocks underperformed, reflecting the pressure on consumers as discussed earlier. The mix of sector performance did not overly benefit either the value or growth style for the year, except in small-caps, where growth outperformed value by four percentage points. Small-cap and mid-cap stocks performed very well over the past year, with a 25.85% gain in the Russell 2000(R) Index and a 21.54% rise in the Russell Midcap(R) Index. International stocks also performed very well, as evidenced by the 24.41% gain in the MSCI EAFE Index. In the fixed-income markets, the yield on the 10-year Treasury note was relatively "range-bound" for much of the year, but continued pressure from short-term rate increases and higher energy prices, among other factors pushed the yield to 4.85% by March. As a result, bond returns, as measured by the Lehman Brothers Aggregate Bond Index, returned a positive, but below average, 2.26% for the year ended March 31. Higher quality bonds, such as Treasuries, tended to lag the overall investment-grade index. The standout performer in the fixed-income market was the High Yield sector, which returned 7.43% during the year. The STI Classic Funds performed very well during this period, as 27 funds across a wide spectrum of investment styles, generated above-average returns. These included large-cap growth and value, mid-cap, small-cap growth and value, short- and intermediate-term bonds, high yield, and municipal bonds. Many of these funds were highlighted for their strong performance in publications such as the Wall Street Journal, Investor's Business Daily, and Kiplinger's Personal Finance. In addition to strong performance, we reduced the internal expense ratios on many of the funds to expressly benefit you, our valued shareholder. 1 Looking ahead, we expect continued economic growth, though the pace over the next year will likely be below that of the past year. This may allow the Fed to keep short-term rates steady for awhile as long as inflation remains contained. It promises to be quite a balancing act for new Fed Chairman Ben Bernanke! With growth likely to slow, interest rates relatively high as compared to the last few years, and elevated energy prices still a threat, our strategy is to emphasize quality company holdings that we believe are best able to weather a more challenging environment. We close this letter with a special thanks to you, and also to Douglas Phillips, CFA, the founding president of Trusco Capital Management, who retired on December 31, 2005. Under Doug's the most challenging markets, to become one of the nation's leading grateful to Doug Phillips for his strong sense of discipline, integrity, and commitment to the highest levels of client service. He will be missed, but his legacy will endure. Sincerely, /s/ David H. Edison - ------------------------------------- David H. Edison Chairman and CEO /s/ Robert J. Rhodes - ------------------------------------- Robert J. Rhodes, CFA Executive Vice President (1) The Gross Domestic Product ("GDP") is the monetary value of all the finished goods and services produced within a country's borders in a specific time period, though GDP is usually calculated on an annual basis. It includes all of private and public consumption, government outlays, investments and exports less imports that occur within a defined territory. 2 CORE BOND FUND (formerly Classic Institutional Core Bond Fund) PORTFOLIO MANAGER(S) - - John Talty, CFA - - Perry Troisi INVESTMENT CONCERNS Mutual fund investing involves risk, including possible loss of principal. Bond funds will tend to experience smaller fluctuations in value than stock funds. However, investors in any bond fund should anticipate fluctuations in price, especially for longer-term issues and in environments of rising interest rates. MANAGEMENT DISCUSSION & ANALYSIS HOW DID THE FUND PERFORM AGAINST ITS BENCHMARK FOR THE PERIOD ENDED MARCH 31, 2006? For the 12 month period ended March 31, 2006, the Core Bond Fund lagged its benchmark the Lehman Brothers U.S. Aggregate Bond Index with a total return of 1.68% (I Shares) versus 2.26% for the Index. WHAT FACTORS INFLUENCED THE FUND'S PERFORMANCE FOR THE PERIOD ENDED MARCH 31, 2006? The economy rebounded from the weak, hurricane impacted, final quarter of 2005. First quarter Gross Domestic Product (1) is predicted to exceed 4%. Employment and manufacturing sectors are healthy and housing has only slowed slightly. The Federal Reserve raised the fed funds target rate twice in the quarter to 4.75%. Interest rates rose approximately 50 basis points (0.50%) in the quarter and returns of bond indexes were slightly negative, similar to last year's third quarter. HOW DO YOU PLAN TO POSITION THE FUND, BASED ON MARKET CONDITIONS? Because credit spreads are extremely narrow, driven by strong demand and limited supply, we maintained our defensive strategy in the quarter. Despite this cautious posture and bias towards Treasuries, we are making active decisions regarding security selection and sector allocations. We are significantly underweight the corporate and mortgage sectors and continue to opportunistically own Treasury Inflation Protected Securities ("TIPS"). We believe that current valuations are not sustainable and do not justify the greater risk of overweighting corporates and mortgages. We think the more likely outcome will be wider yield spreads and better buying opportunities as we move into the latter stages of the current economic expansion. (1) The Gross Domestic Product ("GDP") is the monetary value of all the finished goods and services produced within a country's borders in a specific time period, though GDP is usually calculated on an annual basis. It includes all of private and public consumption, government outlays, investments and exports less imports that occur within a defined territory. PORTFOLIO COMPOSITION (as of March 31, 2006)(2) as a percentage of total investments (PIE CHART) Asset Backed Securities 2.6% Corporate Bonds 9.2% U.S. Government Agency Mortgage 27.8% U.S. Treasury Obligations 51.0% Repurchase Agreements 7.2% Collateralized Mortgage Obligations 2.2%
(2) PORTFOLIO COMPOSITION IS SUBJECT TO CHANGE 3 CORE BOND FUND GROWTH OF $10,000 INVESTMENT (as of March 31, 2006) (PERFORMANCE GRAPH)
Core Bond Fund Lehman Brothers U.S. (I Shares) Aggregate Bond Index -------------- -------------------- 12/30/1997 10000 10000 10020 10128 10180 10156 10409 10393 10740 10832 12/98 10803 10869 10793 10815 10668 10720 10730 10793 12/99 10746 10779 10900 11017 11077 11209 11424 11547 12/00 11864 12033 12219 12398 12314 12468 12836 13043 12/01 12671 13049 12651 13061 13028 13543 13346 14164 12/02 13631 14387 13843 14587 14242 14952 14231 14930 12/03 14287 14977 14636 15375 14319 15000 14766 15479 12/04 14943 15627 14895 15552 15294 16020 15161 15912 12/05 15261 16007 3/06 15146 15903
This chart assumes an initial hypothetical investment of $10,000 made on 12/30/97. Total return is based on net change in N.A.V. (net asset value) assuming reinvestment of distributions. Returns shown on this page include reinvestment of all dividends and other distributions. The Funds performance is compared to the Lehman Brothers U.S. Aggregate Bond Index a widely-recognized index of U.S. Treasury and agency securities, corporate bond issues, mortgage-backed securities, asset-backed securities and corporate mortgage-backed securities. The index is unmanaged and does not reflect the deduction of fees or taxes associated with a mutual fund, such as investment management and fund accounting fees. Investors cannot invest directly in an index, although they can invest in its underlying securities.
AVERAGE ANNUAL TOTAL RETURNS AS OF 3/31/06 (%) ------------------------------------ INCEPTION SINCE CORE BOND FUND DATE+ 1 YEAR 3 YEAR 5 YEAR INCEPTION - -------------- --------- ------ ------ ------ --------- A SHARES WITHOUT SALES CHARGE 01/25/02 1.38 2.72 4.23 4.99 WITH SALES CHARGE* -3.44 1.06 3.22 4.37 C SHARES WITHOUT CDSC 10/11/04 0.76 2.63 4.25 5.01 WITH CDSC* -0.21 2.63 4.25 5.01 I SHARES 12/30/97 1.68 3.04 4.50 5.16 LEHMAN BROTHERS U.S. AGGREGATE BOND INDEX 2.26 2.92 5.11 --
PAST PERFORMANCE DOES NOT GUARANTEE FUTURE RESULTS. THE PERFORMANCE DATA QUOTED REPRESENTS PAST PERFORMANCE AND CURRENT RETURNS MAY BE LOWER OR HIGHER. TOTAL RETURN FIGURES INCLUDE CHANGE IN SHARE PRICE, REINVESTMENT OF DIVIDENDS AND CAPITAL GAINS AND DO NOT REFLECT TAXES THAT A SHAREHOLDER WOULD PAY ON FUND DISTRIBUTIONS OR ON THE REDEMPTION OF FUND SHARES. THE INVESTMENT RETURN AND PRINCIPAL VALUE WILL FLUCTUATE SO THAT AN INVESTOR'S SHARES, WHEN REDEEMED MAY BE WORTH MORE OR LESS THAN THE ORIGINAL COST. FOR PERFORMANCE DATA CURRENT TO THE MOST RECENT MONTH END, VISIT OUR WEBSITE AT WWW.STICLASSICFUNDS.COM. * CLASS A SHARE PERFORMANCE REFLECTS THE MAXIMUM FRONT-END SALES CHARGE OF 4.75% AND CLASS C SHARES REFLECTS THE MAXIMUM CDSC (CONTINGENT DEFERRED SALES CHARGE) OF 1.00% IN YEAR ONE ONLY. EFFECTIVE AUGUST 1, 2005, L SHARES WERE RENAMED C SHARES, INSTITUTIONAL SHARES WERE RENAMED I SHARES AND T SHARES WERE MERGED INTO I SHARES AND T SHARES WERE NO LONGER OFFERED. + The quoted returns reflect the performance from December 30, 1997 to October 11, 2004 of the Seix Core Bond Fund, an open-end investment company that was the predecessor fund to the Core Bond Fund. Performance for the I Shares, which commenced operations on October 11, 2004, is the historical performance of the Seix Core Bond Fund's Class I Shares prior to that date. Performance for the C Shares, which commenced operations on October 11, 2004, is the historical performance of the Seix Core Bond Fund's Class I Shares prior to that date. The historical performance has not been adjusted to reflect the Fund's I share expenses. If it had been, the performance would have been lower. The Class A Shares began operating on October 11, 2004. Performance between December 30, 1997 to January 25, 2002 and January 25, 2002 to October 11, 2004 is that of the Class I Shares and Class P Shares, respectively, of the Seix Core Bond Fund, the Fund's predecessor. The performance of the predecessor fund's Class I Shares has not been adjusted to reflect the Fund's A Shares expenses. If it had been, the Performance would have been lower. 4 FLORIDA TAX-EXEMPT BOND FUND PORTFOLIO MANAGER - - Ronald Schwartz, CFA, CFP INVESTMENT CONCERNS Mutual fund investing involves risk, including possible loss of principal. Bonds offer a relatively stable level of income, although bond prices will fluctuate providing the potential for principal gain or loss. Intermediate-term, higher-quality bonds generally offer less risk than longer-term bonds and a lower rate of return. The Fund is subject to the risk that principal value reacts in opposition to the movement of interests rates and that a rising interest rate environment increases the risk of loss of principal. The geographical concentration of portfolio holdings in this fund may involve increased risk. The Fund's income may be subject to certain state and local taxes and, depending on your tax status, the federal alternative minimum tax. MANAGEMENT DISCUSSION & ANALYSIS HOW DID THE FUND PERFORM AGAINST ITS BENCHMARK FOR THE PERIOD ENDED MARCH 31, 2006? For the 12 months ended March 31, 2006, the Fund returned 2.90% (I Shares) under performing the Lehman Brothers 10 Year Municipal Bond Index which returned 3.31% for the same period. The Fund's under performance during the period was a result of our distribution on the yield curve. Our lack of representation in the 20 years and longer part of the curve was a detriment to the Fund's overall performance. WHAT FACTORS INFLUENCED THE FUND'S PERFORMANCE FOR THE PERIOD ENDED MARCH 31, 2006? Record municipal issuance dominated most of 2005, however the first quarter of 2006 issuance declined by nearly 30% contributing to the sectors out performance. The summer of 2005 saw a continuous stream of positive economic data and the most disruptive hurricane season on record. In August, Hurricane Katrina devastated New Orleans and the Gulf Coast of Mississippi. September opened with Hurricane Rita striking east Texas and western Louisiana. The municipal market struggled to understand the degree to which the economic disruption would impact all facets of the municipal market from insurers to the profitability of property and casualty industry to creating additional financing opportunities. The Fed continued on its path of increasing rates suggesting that inflation was the motivation for the increases. The Federal Open Market Committee raised rates 8 times in the year ended March 31, 2006 taking the fed funds rate from 2.75% to 4.75%. The municipal curve flattened throughout the year with the front end increasing in yields in response to the Fed tightening while the long end decreased in yields as it responded to positive economic conditions. HOW DO YOU PLAN TO POSITION THE FUND, BASED ON MARKET CONDITIONS? Credit spreads remained narrow throughout the period as we continued our focus on high quality securities. We favored a barbell strategy for the majority of the period however as we prepare for the end of the Fed tightening we are reducing our barbell in anticipation of a flatter curve. We will be reducing our exposure to the 10-15 year area of the curve and rolling down to the 5 - 10 year area, with continued over weighing of the 1 - 5 year area.(1) PORTFOLIO COMPOSITION (as March 31, 2006)(1) as a percentage of total investments (PIE CHART) Municipal Bonds 97.3% Money Markets 2.7%
(1) PORTFOLIO COMPOSITION IS SUBJECT TO CHANGE 5 FLORIDA TAX-EXEMPT BOND FUND GROWTH OF $10,000 INVESTMENT (as of March 31, 2006) (PERFORMANCE GRAPH)
Florida Tax-Exempt Lehman Brothers 10 Year Bond Fund (I Shares) Municipal Bond Index -------------------- ----------------------- 3/96 10000 10000 10058 10031 10273 10232 12/96 10546 10523 10446 10521 10780 10867 11076 11205 12/97 11370 11495 11462 11614 11633 11789 12033 12192 12/98 12081 12272 12105 12342 11827 12059 11822 12136 12/99 11801 12119 12119 12401 12296 12599 12551 12911 12/00 13175 13423 13432 13735 13487 13795 13857 14202 12/01 13659 14043 13780 14213 14357 14793 15128 15548 12/02 15103 15471 15262 15662 15628 16153 15585 16133 12/03 15723 16353 15855 16616 15472 16220 15993 16892 12/04 16065 17031 15947 16918 16436 17462 16339 17365 12/05 16459 17498 3/06 16409 17478
This chart assumes an initial hypothetical investment of $10,000 made on 3/31/96. Total return is based on net change in N.A.V. (net asset value) assuming reinvestment of distributions. Returns shown on this page include reinvestment of all dividends and other distributions. The Funds performance is compared to the Lehman Brothers 10 Year Municipal Bond Index a widely recognized index of long-term investment grade tax-exempt bonds. The index includes general obligation bonds, revenue bonds, insured bonds and prefunded bonds with maturities between 8 and 12 years. The index is unmanaged and does not reflect the deduction of fees or taxes associated with a mutual fund, such as investment management and fund accounting fees. Investors cannot invest directly in an index, although they can invest in its underlying securities.
AVERAGE ANNUAL TOTAL RETURNS AS OF 3/31/06 (%) INCEPTION ---------------------------------- FLORIDA TAX-EXEMPT BOND FUND DATE 1 YEAR 3 YEAR 5 YEAR 10 YEAR - ---------------------------- --------- ------ ------ ------ ------- A SHARES WITHOUT SALES CHARGE 01/18/94 2.73 2.28 3.88 4.88 WITH SALES CHARGE* -2.11 0.63 2.88 4.37 C SHARES WITHOUT CDSC 06/01/95 1.95 1.67 3.30 4.33 WITH CDSC* 0.96 1.67 3.30 4.33 I SHARES 01/25/94 2.90 2.45 4.09 5.08 LEHMAN BROTHERS 10 YEAR MUNICIPAL BOND INDEX 3.31 3.72 4.94 5.74
PAST PERFORMANCE DOES NOT GUARANTEE FUTURE RESULTS. THE PERFORMANCE DATA QUOTED REPRESENTS PAST PERFORMANCE AND CURRENT RETURNS MAY BE LOWER OR HIGHER. TOTAL RETURN FIGURES INCLUDE CHANGE IN SHARE PRICE, REINVESTMENT OF DIVIDENDS AND CAPITAL GAINS AND DO NOT REFLECT TAXES THAT A SHAREHOLDER WOULD PAY ON FUND DISTRIBUTIONS OR ON THE REDEMPTION OF FUND SHARES. THE INVESTMENT RETURN AND PRINCIPAL VALUE WILL FLUCTUATE SO THAT AN INVESTOR'S SHARES, WHEN REDEEMED MAY BE WORTH MORE OR LESS THAN THE ORIGINAL COST. FOR PERFORMANCE DATA CURRENT TO THE MOST RECENT MONTH END, VISIT OUR WEBSITE AT WWW.STICLASSICFUNDS.COM. * CLASS A SHARE PERFORMANCE REFLECTS THE MAXIMUM FRONT-END SALES CHARGE OF 4.75% AND CLASS C SHARES REFLECT THE MAXIMUM CDSC (CONTINGENT DEFERRED SALES CHARGE) OF 1.00% IN YEAR ONE ONLY. EFFECTIVE AUGUST 1, 2005, L SHARES WERE RENAMED C SHARES AND T SHARES WERE RENAMED I SHARES. 6 GEORGIA TAX-EXEMPT BOND FUND PORTFOLIO MANAGER - - Chris Carter, CFA INVESTMENT CONCERNS Mutual fund investing involves risk, including possible loss of principal. Bonds offer a relatively stable level of income, although bond prices will fluctuate providing the potential for principal gain or loss. Intermediate-term, higher-quality bonds generally offer less risk than longer-term bonds and a lower rate of return. The geographical concentration of portfolio holdings in this fund may involve increased risk. The Fund's income may be subject to certain state and local taxes and, depending on your tax status, the federal alternative minimum tax. The Fund is subject to the risk that principal value reacts in opposition to the movement of interests rates and that a rising interest rate environment increases the risk of loss of principal. MANAGEMENT DISCUSSION & ANALYSIS HOW DID THE FUND PERFORM AGAINST ITS BENCHMARK FOR THE PERIOD ENDED MARCH 31, 2006? For the 12 months ended March 31, 2006, the Georgia Tax-Exempt Bond Fund had a total return of 3.19% (I Shares) versus a 3.31% return for the Lehman Brothers 10 Year Municipal Bond Index. The Fund maintained an overweight of 0 to 2-year and 15-year and longer paper. Within the latter maturity range, the period witnessed exposure to the long bond sector increased. Five and 10-year generic AAA rated municipal bond yields increased 39 and 15 basis (0.39% and 0.15%) respectively, over the 12 months, while 30-year yields declined 10 basis points. The 2-year to 30-year municipal bond yield curve flattened 89 basis points to 94 basis (0.89% to 0.94%) points of slope. WHAT FACTORS INFLUENCED THE FUND'S PERFORMANCE FOR THE PERIOD ENDED MARCH 31, 2006? The Fund slightly underperformed its benchmark index for the period; the underperformance was due primarily to management fees, which are associated with a mutual fund but not associated with our benchmark index, the Lehman Brothers 10 Year Municipal Bond Index. The index is also not limited to Georgia state tax-exempt municipals and may invest in sectors of the market that we avoid. HOW DO YOU PLAN TO POSITION THE FUND, BASED ON MARKET CONDITIONS? The Fund continues to favor premium bonds (prices greater than par) for their income benefit and relative price stability. All activity should occur within an investment grade construct and the average credit quality of Fund holdings should remain high.(1) PORTFOLIO COMPOSITION (as March 31, 2006)(1) as a percentage of total investments (PIE CHART) Money Market Funds 2.5% Municipal Bonds 97.5%
(1) PORTFOLIO COMPOSITION IS SUBJECT TO CHANGE 7 GEORGIA TAX-EXEMPT BOND FUND GROWTH OF $10,000 INVESTMENT (as of March 31, 2006) (PERFORMANCE GRAPH)
Georgia Tax-Exempt Lehman Brothers 10 Year Bond Fund (I Shares) Municipal Bond Index -------------------- ----------------------- 3/96 10000 10000 10018 10031 10188 10232 12/96 10437 10523 10387 10521 10707 10867 11018 11205 12/97 11290 11495 11368 11614 11518 11789 11895 12192 12/98 11943 12272 11951 12342 11676 12059 11689 12136 12/99 11673 12119 11893 12401 12043 12599 12292 12911 12/00 12774 13423 13065 13735 13103 13795 13462 14202 12/01 13325 14043 13399 14213 13928 14793 14539 15548 12/02 14548 15471 14648 15662 14996 16153 14985 16133 12/03 15108 16353 15242 16616 14831 16220 15389 16892 12/04 15537 17031 15477 16918 15923 17462 15864 17365 12/05 15966 17498 3/06 15971 17478
This chart assumes an initial hypothetical investment of $10,000 made on 3/31/96. Total return is based on net change in N.A.V. (net asset value) assuming reinvestment of distributions. Returns shown on this page include reinvestment of all dividends and other distributions. The Funds performance is compared to the Lehman Brothers 10 Year Municipal Bond Index a widely recognized index of long-term investment grade tax-exempt bonds. The index includes general obligation bonds, revenue bonds, insured bonds and prefunded bonds with maturities between 8 and 12 years. The index is unmanaged and does not reflect the deduction of fees or taxes associated with a mutual fund, such as investment management and fund accounting fees. Investors cannot invest directly in an index, although they can invest in its underlying securities.
AVERAGE ANNUAL TOTAL RETURNS AS OF 3/31/06 (%) ---------------------------------------------- GEORGIA TAX-EXEMPT BOND FUND INCEPTION DATE 1 YEAR 3 YEAR 5 YEAR 10 YEAR - ----------------------------- -------------- ------ ------ ------ ------- A SHARES WITHOUT SALES CHARGE 01/19/94 3.12 2.73 3.92 4.58 WITH SALES CHARGE* -1.78 1.08 2.91 4.08 C SHARES WITHOUT CDSC 06/06/95 2.25 2.11 3.32 4.05 WITH CDSC* 1.25 2.11 3.32 4.05 I SHARES 01/18/94 3.19 2.92 4.10 4.79 LEHMAN BROTHERS 10 YEAR MUNICIPAL BOND INDEX 3.31 3.72 4.94 5.74
PAST PERFORMANCE DOES NOT GUARANTEE FUTURE RESULTS. THE PERFORMANCE DATA QUOTED REPRESENTS PAST PERFORMANCE AND CURRENT RETURNS MAY BE LOWER OR HIGHER. TOTAL RETURN FIGURES INCLUDE CHANGE IN SHARE PRICE, REINVESTMENT OF DIVIDENDS AND CAPITAL GAINS AND DO NOT REFLECT TAXES THAT A SHAREHOLDER WOULD PAY ON FUND DISTRIBUTIONS OR ON THE REDEMPTION OF FUND SHARES. THE INVESTMENT RETURN AND PRINCIPAL VALUE WILL FLUCTUATE SO THAT AN INVESTOR'S SHARES, WHEN REDEEMED MAY BE WORTH MORE OR LESS THAN THE ORIGINAL COST. FOR PERFORMANCE DATA CURRENT TO THE MOST RECENT MONTH END, VISIT OUR WEBSITE AT WWW.STICLASSICFUNDS.COM. * CLASS A SHARE PERFORMANCE REFLECTS THE MAXIMUM FRONT-END SALES CHARGE OF 4.75% AND CLASS C SHARES REFLECT THE MAXIMUM CDSC (CONTINGENT DEFERRED SALES CHARGE) OF 1.00% IN YEAR ONE ONLY. EFFECTIVE AUGUST 1, 2005, L SHARES WERE RENAMED C SHARES AND T SHARES WERE RENAMED I SHARES. 8 HIGH INCOME FUND PORTFOLIO MANAGER(S) - - George Goudelias - - Michael McEachern, CFA INVESTMENT CONCERNS Mutual fund investing involves risk, including possible loss of principal. Bonds offer a relatively stable level of income, although bond prices will fluctuate providing the potential for principal gain or loss. Intermediate-term, higher-quality bonds generally offer less risk than longer-term bonds and a lower rate of return. Although the Fund's yield may be higher than that of fixed income funds that purchase higher-rated securities, the potentially higher yield is a function of the greater risk that the fund's share price will decline. The Fund is subject to the risk that principal value reacts in opposition to the movement of interests rates and that a rising interest rate environment increases the risk of loss of principal. MANAGEMENT DISCUSSION & ANALYSIS HOW DID THE FUND PERFORM AGAINST ITS BENCHMARK FOR THE PERIOD ENDED MARCH 31, 2006? For the 12 month period ended March 31, 2006, the High Income Fund outperformed its benchmark the Lehman Brothers U.S. Corporate High Yield Bond Index with a return of 7.53% (I Shares) versus 7.43% for the index. WHAT FACTORS INFLUENCED THE FUND'S PERFORMANCE FOR THE PERIOD ENDED MARCH 31, 2006? The portfolio's underweighting in Autos hurt relative returns in the first quarter when GM and Ford bonds recovered from a difficult fourth quarter. The sector was helped by anticipation of the long awaited announcement of a GM deal to sell a majority stake in GMAC. (1) In the first quarter, we reduced exposure to Healthcare. The industry has enjoyed a favorable regulatory environment for the past three years. It appears this cycle is turning and margins may be squeezed as a result of harsher government scrutiny. Positions in the Food and Restaurant sector were sold after they had reached our price target. We rotated into Technology and Chemicals where new issues offered value. (1) HOW DO YOU PLAN TO POSITION THE FUND, BASED ON MARKET CONDITIONS? We will continue to be underweighted in Autos, since the long term outlook for the industry--both large manufacturers and their suppliers--is negative. We believe that rising interest rates will not be as big a factor for the rest of the year and that fundamentals could remain strong. The key to performance will be avoiding those issuers whose balance sheets will deteriorate as a result of stockholder friendly actions. (1) PORTFOLIO COMPOSITION (as of March 31, 2006)(1) as a percentage of total investments (PIE CHART) Bank Loans 4.1% Corporate Bonds 78.7% Preferred Stock 1.4% Short-Term Investment 12.3% Repurchase Agreement 3.5%
(1) PORTFOLIO COMPOSITION IS SUBJECT TO CHANGE 9 HIGH INCOME FUND GROWTH OF $10,000 INVESTMENT (as of March 31, 2006) (PERFORMANCE GRAPH)
High Income Fund Lehman Brothers U.S. Corporate (I Shares) High Yield Bond Index ---------------- ------------------------------ 10/3/2001 10000 10000 12/01 10342 10578 10355 10756 9785 10066 9258 9771 12/02 9998 10429 10576 11223 11499 12357 11792 12700 12/03 12578 13450 12799 13765 12752 13633 13234 14294 12/04 13876 14947 13728 14707 13966 15113 14307 15253 12/05 14460 15356 3/06 14761 15799
This chart assumes an initial hypothetical investment of $10,000 made on 10/3/01. Total return is based on net change in N.A.V. (net asset value) assuming reinvestment of distributions. Returns shown on this page include reinvestment of all dividends and other distributions. The Funds performance is compared to the Lehman Brothers U.S. Corporate High Yield Bond Index, a widely recognized, market value-weighted index that covers the universe of fixed rate, non-investment grade debt. The index is unmanaged and does not reflect the deduction of fees or taxes associated with a mutual fund, such as investment management and fund accounting fees. Investors cannot invest directly in an index, although they can invest in its underlying securities.
AVERAGE ANNUAL TOTAL RETURNS AS OF 3/31/06 (%) ---------------------------------------------- SINCE HIGH INCOME FUND INCEPTION DATE 1 YEAR 3 YEAR 5 YEAR 10 YEAR INCEPTION - ---------------- -------------- ------ ------ ------ ------- --------- A SHARES WITHOUT SALES CHARGE 10/27/03 7.20 -- -- -- 8.69 WITH SALES CHARGE* 2.09 -- -- -- 6.52 C SHARES WITHOUT CDSC 05/04/94 6.57 10.94 7.47 4.57 4.88 WITH CDSC* 5.62 10.94 7.47 4.57 4.88 I SHARES 10/03/01 7.53 11.75 -- -- 9.06 LEHMAN BROTHERS U.S. CORPORATE HIGH YIELD BOND INDEX 7.43 12.08 8.13 6.66 --
PAST PERFORMANCE DOES NOT GUARANTEE FUTURE RESULTS. THE PERFORMANCE DATA QUOTED REPRESENTS PAST PERFORMANCE AND CURRENT RETURNS MAY BE LOWER OR HIGHER. TOTAL RETURN FIGURES INCLUDE CHANGE IN SHARE PRICE, REINVESTMENT OF DIVIDENDS AND CAPITAL GAINS AND DO NOT REFLECT TAXES THAT A SHAREHOLDER WOULD PAY ON FUND DISTRIBUTIONS OR ON THE REDEMPTION OF FUND SHARES. THE INVESTMENT RETURN AND PRINCIPAL VALUE WILL FLUCTUATE SO THAT AN INVESTOR'S SHARES, WHEN REDEEMED MAY BE WORTH MORE OR LESS THAN THE ORIGINAL COST. FOR PERFORMANCE DATA CURRENT TO THE MOST RECENT MONTH END, VISIT OUR WEBSITE AT WWW.STICLASSICFUNDS.COM. * CLASS A SHARE PERFORMANCE REFLECTS THE MAXIMUM FRONT-END SALES CHARGE OF 4.75% AND CLASS C SHARES REFLECT THE MAXIMUM CDSC (CONTINGENT DEFERRED SALES CHARGE) OF 1.00% IN YEAR ONE ONLY. EFFECTIVE AUGUST 1, 2005, L SHARES WERE RENAMED C SHARES AND T SHARES WERE RENAMED I SHARES. 10 HIGH QUALITY BOND FUND (formerly Classic Institutional High Quality Bond Fund) PORTFOLIO MANAGER(S) - - Perry Troisi - - Adrien Webb, CFA INVESTMENT CONCERNS Bonds offer a relatively stable level of income, although bond prices will fluctuate providing the potential for principal gain or loss. Intermediate-term, higher-quality bonds generally offer less risk than longer-term bonds and a lower rate of return. Although the Fund's yield may be higher than that of fixed income funds that purchase higher-rated securities, the potentially higher yield is a function of the greater risk that the Fund's share price will decline. MANAGEMENT DISCUSSION & ANALYSIS HOW DID THE FUND PERFORM AGAINST ITS BENCHMARK FOR THE PERIOD ENDED MARCH 31, 2006? For the 12 month period ended March 31, 2006, the High Quality Bond Fund underperformed its benchmark with a return of 1.52% (I Shares) versus 2.09% for its benchmark the Lehman Brothers U. S. Intermediate Government/Credit A+ Index. WHAT FACTORS INFLUENCED THE FUND'S PERFORMANCE FOR THE PERIOD ENDED MARCH 31, 2006? The Fund has maintained its defensive strategy over the past fiscal year, while credit spreads have been extremely narrow and driven by strong demand and limited supply. Despite this cautious posture and bias towards Treasuries, we are making active decisions regarding security selection and sector allocations. We are significantly underweight the corporate and mortgage sectors and as always are neutral duration to the index. The resulting performance for the Fund modestly trailed the index's results. The economy rebounded from the weak, hurricane impacted, final quarter of 2005. First quarter Gross Domestic Product (1) is predicted to exceed 4%. Employment and manufacturing sectors are healthy and housing has only slowed slightly. The Fed raised the fed funds target rate twice in the quarter to 4.75%. Interest rates rose approximately 50 basis points (0.50%) in the quarter and returns of bond indexes were slightly negative, similar to last year's third quarter. HOW DO YOU PLAN TO POSITION THE FUND, BASED ON MARKET CONDITIONS? Because credit spreads are extremely narrow, driven by strong demand and limited supply, we maintained our defensive strategy in the quarter. Despite this cautious posture and bias towards Treasuries, we are making active decisions regarding security selection and sector allocations. We are significantly underweight in the corporate and mortgage sectors and continue to opportunistically own Treasury Inflation Protected Securities. We believe that current valuations are not sustainable and do not justify the greater risk of overweighting corporates and mortgages. We think the outcome will more likely be wider yield spreads and better buying opportunities as we move into the latter stages of the current economic expansion.(2) (1) The Gross Domestic Product ("GDP") is the monetary value of all the finished goods and services produced within a country's borders in a specific time period, though GDP is usually calculated on an annual basis. It includes all of private and public consumption, government outlays, investments and exports less imports that occur within a defined territory. PORTFOLIO COMPOSITION (as of March 31, 2006)(2) as a percentage of total investments (PIE CHART) Asset Backed Securities 3.1% Corporate Bonds 14.5% U.S. Government Agency Mortgages 8.2% U.S. Treasury Obligations 73.8% Money Market Funds 0.4%
(2) PORTFOLIO COMPOSITION IS SUBJECT TO CHANGE 11 HIGH QUALITY BOND FUND GROWTH OF $10,000 INVESTMENT (as of March 31, 2006) (PERFORMANCE GRAPH)
Lehman Brothers U.S. High Quality Bond Intermediate Government/ Fund (I Shares) Credit A+ Index ----------------- ------------------------ 10/29/2003 10000 10000 12/03 10073 10085 10247 10324 9993 10070 10236 10322 12/04 10282 10356 10193 10278 10412 10530 10354 10474 12/05 10402 10532 3/06 10347 10494
This chart assumes an initial hypothetical investment of $10,000 made on 10/29/03. Total return is based on net change in N.A.V. (net asset value) assuming reinvestment of distributions. Returns shown on this page include reinvestment of all dividends and other distributions. The Funds performance is compared to the Lehman Brothers U.S. Intermediate Government/Credit A+ Index which consists of is composed of all bonds that are investment grade, rated Baa or higher by Moody's or BBB or higher by Standard & Poor's if unrated by Moody's. Issues must have at least one year to maturity. Total return comprises price appreciation/depreciation and income as a percentage of the original investment. The index is unmanaged and does not reflect the deduction of fees or taxes associated with a mutual fund, such as investment management and fund accounting fees. Investors cannot invest directly in an index, although they can invest in its underlying securities.
AVERAGE ANNUAL TOTAL RETURNS AS OF 3/31/06 (%) ------------------------- HIGH QUALITY BOND FUND INCEPTION DATE 1 YEAR SINCE INCEPTION - ---------------------- -------------- ------ --------------- I SHARES 10/29/03 1.52 1.42 LEHMAN BROTHERS U.S. INTERMEDIATE GOVERNMENT/CREDIT A+ INDEX 2.09 --
PAST PERFORMANCE DOES NOT GUARANTEE FUTURE RESULTS. THE PERFORMANCE DATA QUOTED REPRESENTS PAST PERFORMANCE AND CURRENT RETURNS MAY BE LOWER OR HIGHER. TOTAL RETURN FIGURES INCLUDE CHANGE IN SHARE PRICE, REINVESTMENT OF DIVIDENDS AND CAPITAL GAINS AND DO NOT REFLECT TAXES THAT A SHAREHOLDER WOULD PAY ON FUND DISTRIBUTIONS OR ON THE REDEMPTION OF FUND SHARES. THE INVESTMENT RETURN AND PRINCIPAL VALUE WILL FLUCTUATE SO THAT AN INVESTOR'S THAN THE ORIGINAL COST. FOR PERFORMANCE DATA CURRENT TO THE MOST RECENT MONTH END, VISIT OUR WEBSITE AT WWW.STICLASSICFUNDS. COM. Effective August 1, 2005, Institutional Shares were renamed I Shares, T Shares were merged into I Shares and T Shares were no longer offered. 12 INTERMEDIATE BOND FUND (formerly Classic Institutional Intermediate Bond Fund) PORTFOLIO MANAGER(S) - - John Talty, CFA - - Perry Troisi INVESTMENT CONCERNS Mutual fund investing involves risk, including possible loss of principal. Bond funds will tend to experience smaller fluctuations in value than stock funds. However, investors in any bond fund should anticipate fluctuations in price, especially for longer-term issues and in environments of rising interest rates. MANAGEMENT DISCUSSION & ANALYSIS HOW DID THE FUND PERFORM AGAINST ITS BENCHMARK FOR THE PERIOD ENDED MARCH 31, 2006? For the 12 month period ended March 31, 2006, the Intermediate Bond Fund lagged its benchmark the Lehman Brothers Intermediate Government/Credit Bond Index with a return of 1.76% (I Shares) versus 2.08% for the index. WHAT FACTORS INFLUENCED THE FUND'S PERFORMANCE FOR THE PERIOD ENDED MARCH 31, 2006? The Fund has maintained its defensive strategy over the past fiscal year, while credit spreads have been extremely narrow and driven by strong demand and limited supply. Despite this cautious posture and bias towards Treasuries, we are making active decisions regarding security selection and sector allocations. We are significantly underweight the corporate sector and as always are neutral duration to the index. The resulting performance for the Fund modestly trailed the index's results. The economy rebounded from the weak, hurricane impacted, final quarter of 2005. First quarter Gross Domestic Product (1) is predicted to exceed 4%. Employment and manufacturing sectors are healthy and housing has only slowed slightly. The Fed raised the fed funds target rate twice in the quarter to 4.75%. Interest rates rose approximately 50 basis points (0.50%) in the quarter and returns of bond indexes were slightly negative, similar to last year's third quarter. HOW DO YOU PLAN TO POSITION THE FUND, BASED ON MARKET CONDITIONS? Because credit spreads are extremely narrow, driven by strong demand and limited supply, we maintained our defensive strategy in the quarter. Despite this cautious posture and bias towards Treasuries, we are making active decisions regarding security selection and sector allocations. We are significantly underweight in the corporate and mortgage sectors and continue to opportunistically own Treasury Inflation Protected Securities. We believe that current valuations are not sustainable and do not justify the greater risk of overweighting corporates and mortgages. We think the outcome will more likely be wider yield spreads and better buying opportunities as we move into the latter stages of the current economic expansion.(2) (1) The Gross Domestic Product ("GDP") is the monetary value of all the finished goods and services produced within a country's borders in a specific time period, though GDP is usually calculated on an annual basis. It includes all of private and public consumption, government outlays, investments and exports less imports that occur within a defined territory. PORTFOLIO COMPOSITION (as of March 31, 2006)(2) as a percentage of total investments (PIE CHART) Collateralized Mortgage Obligations 3.0% Corporate Bonds 16.8% U.S. Treasury Obligations 76.7% Repurchase Agreements 2.5% Asset Backed Securities 1.0%
(2) PORTFOLIO COMPOSITION IS SUBJECT TO CHANGE 13 INTERMEDIATE BOND FUND GROWTH OF $10,000 INVESTMENT (as of March 31, 2006) (PERFORMANCE GRAPH)
Intermediate Bond Fund Lehman Brothers Intermediate (I Shares) Government/Credit Index ---------------------- ---------------------------- 6/30/1999 10000 10000 10094 10092 12/99 10123 10098 10322 10249 10456 10423 10774 10723 12/00 11154 11119 11508 11496 11573 11573 12073 12106 12/01 11936 12116 11892 12089 12230 12519 12592 13086 12/02 12792 13307 12939 13508 13265 13875 13293 13873 12/03 13308 13881 13635 14225 13318 13866 13693 14241 12/04 13799 14303 13686 14179 13997 14531 13908 14455 12/05 13989 14529 3/06 13926 14473
This chart assumes an initial hypothetical investment of $10,000 made on 6/30/99. Total return is based on net change in N.A.V. (net asset value) assuming reinvestment of distributions. Returns shown on this page include reinvestment of all dividends and other distributions. The Funds performance is compared to the Lehman Brothers Intermediate Government/Credit Bond Index which is a widely-recognized, market-value weighted (higher market value bonds have more influence than lower market value bonds) index of U.S. Treasury and agency securities, corporate bond issues and mortgage-backed securities having maturities of 10 years or less. The index is unmanaged and does not reflect the deduction of fees or taxes associated with a mutual fund, such as investment management and fund accounting fees. Investors cannot invest directly in an index, although they can invest in its underlying securities.
AVERAGE ANNUAL TOTAL RETURNS AS OF 3/31/06 (%) ------------------------------------ INCEPTION SINCE INTERMEDIATE BOND FUND DATE+ 1 YEAR 3 YEAR 5 YEAR INCEPTION - ---------------------- --------- ------ ------ ------ --------- A SHARES WITHOUT SALES CHARGE 10/11/04 1.39 2.29 3.88 4.94 WITH SALES CHARGE* -3.40 0.65 2.88 4.18 C SHARES WITHOUT CDSC 10/11/04 0.74 2.01 3.71 4.81 WITH CDSC* -0.24 2.01 3.71 4.81 I SHARES 6/30/99 1.76 2.48 4.00 5.03 LEHMAN BROTHERS INTERMEDIATE GOVERNMENT/CREDIT INDEX 2.08 2.33 4.71 --
PAST PERFORMANCE DOES NOT GUARANTEE FUTURE RESULTS. THE PERFORMANCE DATA QUOTED REPRESENTS PAST PERFORMANCE AND CURRENT RETURNS MAY BE LOWER OR HIGHER. TOTAL RETURN FIGURES INCLUDE CHANGE IN SHARE PRICE, REINVESTMENT OF DIVIDENDS AND CAPITAL GAINS AND DO NOT REFLECT TAXES THAT A SHAREHOLDER WOULD PAY ON FUND DISTRIBUTIONS OR ON THE REDEMPTION OF FUND SHARES. THE INVESTMENT RETURN AND PRINCIPAL VALUE WILL FLUCTUATE SO THAT AN INVESTOR'S SHARES, WHEN REDEEMED MAY BE WORTH MORE OR LESS THAN THE ORIGINAL COST. FOR PERFORMANCE DATA CURRENT TO THE MOST RECENT MONTH END, VISIT OUR WEBSITE AT WWW.STICLASSICFUNDS. COM. * CLASS A SHARE PERFORMANCE REFLECTS THE MAXIMUM FRONT-END SALES CHARGE OF 4.75% AND CLASS C SHARES REFLECT THE MAXIMUM CDSC (CONTINGENT DEFERRED SALES CHARGE) OF 1.00% IN YEAR ONE ONLY. EFFECTIVE AUGUST 1, 2005, L SHARES WERE RENAMED C SHARES, INSTITUTIONAL SHARES WERE RENAMED I SHARES, T SHARES MERGED INTO I SHARES AND T SHARES WERE NO LONGER OFFERED. + The quoted returns reflect the performance from June 30, 1999 to October 11, 2004 of the Seix Intermediate Bond Fund, an open-end investment company that was the predecessor fund to the Intermediate Bond Fund. Performance for the I Shares, which commenced operations on October 11, 2004, is the historical performance of the Seix Intermediate Bond Fund's Class I Shares prior to that date. Performance for the C Shares, which commenced operations on October 11, 2004, is the historical performance of the Seix Intermediate Bond Fund's Class I Shares prior to that date. The historical performance has not been adjusted to reflect the Fund's C Share expenses. If it had been, the performance would have been lower. The Class A Shares began operating on October 11, 2004. Performance between December 30, 1997 to January 25, 2002 and January 25, 2002 to October 11, 2004 is that of the Class I Shares and Class P Shares, respectively, of the Seix Intermediate Bond Fund, the Fund's predecessor. The performance of the predecessor fund's Class I Shares has not been adjusted to reflect the Fund's A Share expenses. If it had been, the performance would have been lower. 14 INVESTMENT GRADE BOND FUND PORTFOLIO MANAGER(S) - - Perry Troisi - - John Talty, CFA INVESTMENT CONCERNS Mutual fund investing involves risk, including possible loss of principal. Bonds offer a relatively stable level of income, although bond prices will fluctuate providing the potential for principal gain or loss. Intermediate-term, higher-quality bonds generally offer less risk than longer-term bonds and a lower rate of return. The Fund is subject to the risk that principal value reacts in opposition to the movement of interests rates and that a rising interest rate environment increases the risk of loss of principal. MANAGEMENT DISCUSSION & ANALYSIS HOW DID THE FUND PERFORM AGAINST ITS BENCHMARK FOR THE PERIOD ENDED MARCH 31, 2006? For the 12 month period ended March 31, 2006, the Investment Grade Bond Fund outperformed its benchmark's Lehman Brothers Intermediate U.S. Government/Credit Bond Index and the Lehman Brothers U.S. Aggregate Bond Index with a total return of 2.94% (I Shares) versus 2.02% and 2.26%, respectively. WHAT FACTORS INFLUENCED THE FUND'S PERFORMANCE FOR THE PERIOD ENDED MARCH 31, 2006? The economy rebounded from the weak, hurricane impacted, final quarter of 2005. First quarter Gross Domestic Product (1) is predicted to exceed 4%. Employment and manufacturing sectors are healthy and housing has only slowed slightly. The Fed raised the fed funds target rate twice in the quarter to 4.75%. Interest rates rose approximately 50 basis points (0.50%) in the quarter and returns of bond indexes were slightly negative, similar to last year's third quarter. HOW DO YOU PLAN TO POSITION THE FUND, BASED ON MARKET CONDITIONS? Because credit spreads are extremely narrow, driven by strong demand and limited supply, we maintained our defensive strategy in the quarter. Despite this cautious posture and bias towards Treasuries, we are making active decisions regarding security selection and sector allocations. We are significantly underweight in the corporate and mortgage sectors and continue to opportunistically own Treasury Inflation Protected Securities. We believe that current valuations are not sustainable and do not justify the greater risk of overweighting corporates and mortgages. We think the outcome will more likely be wider yield spreads and better buying opportunities as we move into the latter stages of the current economic expansion.(2) (1) The Gross Domestic Product ("GDP") is the monetary value of all the finished goods and services produced within a country's borders in a specific time period, though GDP is usually calculated on an annual basis. It includes all of private and public consumption, government outlays, investments and exports less imports that occur within a defined territory. PORTFOLIO COMPOSITION (as of March 31, 2006)(2) as a percentage of total investments (PIE CHART) Collateralized Mortgage Obligations 2.1% Corporate Bonds 12.3% U.S. Government Agencies 3.5% U.S. Government Agency Mortgages 0.1% U.S. Treasury Obligations 48.3% Short-Term Investment 32.1% Repurchase Agreements 0.9% Asset Backed Securities 0.7%
(2) PORTFOLIO COMPOSITION IS SUBJECT TO CHANGE 15 INVESTMENT GRADE BOND FUND GROWTH OF $10,000 INVESTMENT (as of March 31, 2006) (PERFORMANCE GRAPH)
Investment Lehman Brothers Lehman Brothers Grade Bond U.S. Government/Credit U.S. Aggregate Fund (I Shares) Bond Index Bond Index --------------- ---------------------- --------------- 3/96 10000 10000 10000 10026 10047 10057 10188 10224 10243 12/96 10450 10537 10550 10373 10446 10491 10739 10826 10876 11088 11205 11238 12/97 11399 11565 11569 11600 11740 11749 11890 12047 12023 12532 12644 12531 12/98 12446 12661 12574 12373 12509 12511 12219 12372 12401 12313 12439 12486 12/99 12255 12389 12470 12522 12722 12745 12311 12906 12967 12630 13277 13358 12/00 13061 13857 13920 13711 14300 14343 13761 14343 14423 14367 15026 15089 12/01 14244 15035 15096 14093 14964 15110 14304 15526 15668 15029 16411 16386 12/02 15301 16694 16644 15550 16969 16875 15983 17567 17297 15903 17478 17272 12/03 15867 17474 17327 16344 18012 17787 15777 17441 17353 16317 18061 17907 12/04 16516 18206 18078 16438 18084 17992 16927 18707 18533 16753 18527 18408 12/05 16873 18638 18517 3/06 16921 18449 18398
This chart assumes an initial hypothetical investment of $10,000 made on 3/31/96. Total return is based on net change in N.A.V. (net asset value) assuming reinvestment of distributions. Returns shown on this page include reinvestment of all dividends and other distributions. The Funds performance is compared to the Lehman Brothers U.S. Government/Credit Bond Index a widely recognized composite index made up of the Lehman Brothers U.S. Government Index and the Lehman Brothers U.S. Credit Index which include U.S. Government, Treasury and agency securities, as well as high grade corporate bonds. The Fund's Aggregate Bond Index a widely recognized index of U.S. Treasury and agency securities, corporate bond issues, mortgage-backed securities, asset-backed securities and corporate mortgage-backed securities. The indices are unmanaged and do not reflect the deduction of fees or taxes associated with a mutual fund, such as investment management and fund accounting fees. Investors cannot invest directly in an index, although they can invest in its underlying securities.
AVERAGE ANNUAL TOTAL RETURNS AS OF 3/31/06 (%) INCEPTION ---------------------------------- INVESTMENT GRADE BOND FUND DATE 1 YEAR 3 YEAR 5 YEAR 10 YEAR - -------------------------- --------- ------ ------ ------ ------- A SHARES WITHOUT SALES CHARGE 06/11/92 2.69 2.46 3.92 4.99 WITH SALES CHARGE* -2.16 0.81 2.91 4.48 C SHARES WITHOUT CDSC 06/07/95 1.94 1.87 3.35 4.46 WITH CDSC* 0.95 1.87 3.35 4.46 I SHARES 07/16/92 2.94 2.86 4.30 5.40 LEHMAN BROTHERS U.S. GOVERNMENT/ CREDIT BOND INDEX 2.02 2.83 5.23 6.32 LEHMAN BROTHERS U. S. AGGREGATE BOND INDEX 2.26 2.92 5.11 6.29
PAST PERFORMANCE DOES NOT GUARANTEE FUTURE RESULTS. THE PERFORMANCE DATA QUOTED REPRESENTS PAST PERFORMANCE AND CURRENT RETURNS MAY BE LOWER OR HIGHER. TOTAL RETURN FIGURES INCLUDE CHANGE IN SHARE PRICE, REINVESTMENT OF DIVIDENDS AND CAPITAL GAINS AND DO NOT REFLECT TAXES THAT A SHAREHOLDER WOULD PAY ON FUND DISTRIBUTIONS OR ON THE REDEMPTION OF FUND SHARES. THE INVESTMENT RETURN AND PRINCIPAL VALUE WILL FLUCTUATE SO THAT AN INVESTOR'S SHARES, WHEN REDEEMED MAY BE WORTH MORE OR LESS THAN THE ORIGINAL COST. FOR PERFORMANCE DATA CURRENT TO THE MOST RECENT MONTH END, VISIT OUR WEBSITE AT WWW.STICLASSICFUNDS.COM. * CLASS A SHARE PERFORMANCE REFLECTS THE MAXIMUM FRONT-END SALES CHARGE OF 4.75% AND CLASS C SHARES REFLECT THE MAXIMUM CDSC (CONTINGENT DEFERRED SALES CHARGE) OF 1.00% IN YEAR ONE ONLY. EFFECTIVE AUGUST 1, 2005, L SHARES WERE RENAMED C SHARES AND T SHARES WERE RENAMED I SHARES. 16 INVESTMENT GRADE TAX-EXEMPT BOND FUND PORTFOLIO MANAGER - - Ronald Schwartz, CFA, CFP INVESTMENT CONCERNS Mutual fund investing involves risk, including possible loss of principal. Bonds offer a relatively stable level of income, although bond prices will fluctuate providing the potential for principal gain or loss. Intermediate-term, higher-quality bonds generally offer less risk than longer-term bonds and a lower rate of return. The Fund's income may be subject to certain state and local taxes and, minimum tax. The Fund is subject to the risk that principal value reacts in opposition to the movement of interests rates and that a rising interest rate environment increases the risk of loss of principal. MANAGEMENT DISCUSSION & ANALYSIS HOW DID THE FUND PERFORM AGAINST ITS BENCHMARK FOR THE PERIOD ENDED MARCH 31, 2006? For the 12 months ended March 31, 2006, the Investment Grade Tax-Exempt Bond Fund returned 2.92% (I Shares) outperforming the Lehman Brothers 5 Year Municipal Bond Index which returned 2.14% for the same period. The Fund's performance during the period was a result of trading opportunities realized during the period as well as our placement on the yield curve. WHAT FACTORS INFLUENCED THE FUND'S PERFORMANCE FOR THE PERIOD ENDED MARCH 31, 2006? Record municipal issuance dominated most of 2005, however the first quarter of 2006 issuance declined by nearly 30% contributing to the sectors out performance. The summer of 2005 saw a continuous stream of positive economic data and the most disruptive hurricane season on record. In August, Hurricane Katrina devastated New Orleans and the Gulf Coast of Mississippi. September opened with Hurricane Rita striking east Texas and western Louisiana. The municipal market struggled to understand the degree to which the economic disruption would impact all facets of the municipal market from insurers to the profitability of property and casualty industry to creating additional financing opportunities. The Fed continued on is path of increasing rates suggesting that inflation was the motivation for the increases. The Federal Open Market Committee raised rates 8 times in the year ended March 31, 2006 taking the fed funds rate from 2.75% to 4.75%. The municipal curve flattened throughout the year with the front end increasing in yields in response to the Fed tightening while the long end decreased in yields as it responded to positive economic conditions. HOW DO YOU PLAN TO POSITION THE FUND, BASED ON MARKET CONDITIONS? Credit spreads remained narrow throughout the period as we continued our focus on high quality securities. We favored a barbell strategy for the majority of the period however as we prepare for the end of the Fed tightening we are reducing our barbell in anticipation of a flatter curve. We will be reducing our exposure to the 10-15 year area of the curve and rolling down to the 5 -10 year area, with continued over weighing of the 1-5 year area.(1) PORTFOLIO COMPOSITION (as of March 31, 2006)(1) as a percentage of total investments (PIE CHART) Municipal Bonds 94.0% Money Market Funds 6.0%
(1) PORTFOLIO COMPOSITION IS SUBJECT TO CHANGE 17 INVESTMENT GRADE TAX-EXEMPT BOND FUND GROWTH OF $10,000 INVESTMENT (as of March 31, 2006) (PERFORMANCE GRAPH)
Investment Grade Lehman Brothers Tax-Exempt Bond 5 Year Municipal Fund (I Shares) Bond Index ---------------- ---------------- 3/96 10000 10000 10066 10053 10276 10219 12/96 10526 10422 10514 10419 10820 10674 11072 10902 12/97 11346 11086 11471 11215 11653 11340 12055 11638 12/98 12147 11734 12215 11856 12031 11709 12059 11819 12/99 12116 11820 12414 11961 12604 12150 12852 12389 12/00 13433 12732 13751 13093 13798 13222 14147 13585 12/01 14174 13522 14341 13600 14803 14161 15512 14652 12/02 15644 14776 15808 14941 16174 15212 16189 15366 12/03 16334 15386 16528 15583 16252 15248 16767 15680 12/04 16904 15805 16784 15623 17227 15922 17155 15907 12/05 17280 15955 3/06 17274 15958
This chart assumes an initial hypothetical investment of $10,000 made on 3/31/96. Total return is based on net change in N.A.V. (net asset value) assuming reinvestment of distributions. Returns shown on this page include reinvestment of all dividends and other distributions. The Funds performance is compared to the Lehman Brothers 5 Year Municipal Bond Index a widely recognized index of intermediate investment grade tax-exempt bonds. The index includes general obligation bonds, revenue bonds, insured bonds and prefunded bonds with maturities between 4 and 6 years. The index is unmanaged and does not reflect the deduction of fees or taxes associated with a mutual fund, such as investment management and fund accounting fees. Investors cannot invest directly in an index, although they can invest in its underlying securities.
AVERAGE ANNUAL TOTAL RETURNS AS OF 3/31/06 (%) INVESTMENT GRADE INCEPTION ---------------------------------- TAX-EXEMPT BOND FUND DATE 1 YEAR 3 YEAR 5 YEAR 10 YEAR - -------------------- --------- ------ ------ ------ ------- A SHARES WITHOUT SALES CHARGE 06/09/92 2.57 2.59 4.25 5.18 WITH SALES CHARGE* -2.29 0.93 3.25 4.67 C SHARES WITHOUT CDSC 06/01/95 1.92 2.02 3.72 4.66 WITH CDSC* 0.93 2.02 3.72 4.66 I SHARES 10/21/93 2.92 3.00 4.67 5.62 LEHMAN BROTHERS 5 YEAR MUNICIPAL BOND INDEX 2.14 2.22 4.04 4.78
PAST PERFORMANCE DOES NOT GUARANTEE FUTURE RESULTS. THE PERFORMANCE DATA QUOTED REPRESENTS PAST PERFORMANCE AND CURRENT RETURNS MAY BE LOWER OR HIGHER. TOTAL RETURN FIGURES INCLUDE CHANGE IN SHARE PRICE, REINVESTMENT OF DIVIDENDS AND CAPITAL GAINS AND DO NOT REFLECT TAXES THAT A SHAREHOLDER WOULD PAY ON FUND DISTRIBUTIONS OR ON THE REDEMPTION OF FUND SHARES. THE INVESTMENT RETURN AND PRINCIPAL VALUE WILL FLUCTUATE SO THAT AN INVESTOR'S SHARES, WHEN REDEEMED MAY BE WORTH MORE OR LESS THAN THE ORIGINAL COST. FOR PERFORMANCE DATA CURRENT TO THE MOST RECENT MONTH END, VISIT OUR WEBSITE AT WWW.STICLASSICFUNDS.COM. * CLASS A SHARE PERFORMANCE REFLECTS THE MAXIMUM FRONT-END SALES CHARGE OF 4.75% AND CLASS C SHARES REFLECT THE MAXIMUM CDSC (CONTINGENT DEFERRED SALES CHARGE) OF 1.00% IN YEAR ONE ONLY. EFFECTIVE AUGUST 1, 2005, L SHARES WERE RENAMED C SHARES AND T SHARES WERE RENAMED I SHARES. 18 LIMITED DURATION FUND (formerly Classic Institutional Limited Duration Fund) PORTFOLIO MANAGER(S) - - Joseph Calabrese, CFA - - John Talty, CFA INVESTMENT CONCERNS Mutual fund investing involves risk, including possible loss of principal. Bond funds will tend to experience smaller fluctuations in value than stock funds. However, investors in any bond fund should anticipate fluctuations in price, especially for longer-term issues and in environments of rising interest rates. MANAGEMENT DISCUSSION & ANALYSIS HOW DID THE FUND PERFORM AGAINST ITS BENCHMARK FOR THE PERIOD ENDED MARCH 31, 2006? For the 12 month period ended March 31, 2006, the Limited Duration Fund outperformed its benchmark the Merrill Lynch 3 Month U.S. Treasury Bill Index with a return of 3.73% (I Shares) versus 3.53% for the Index. WHAT FACTORS INFLUENCED THE FUND'S PERFORMANCE FOR THE PERIOD ENDED MARCH 31, 2006? The Fund generated the majority of its return through the collection of interest. By utilizing asset-backed securities with attractive spreads over money market instruments, Agencies and Treasuries, the Fund produced a steady source of income with price preservation as a secondary goal.(1) The Fund supplemented its use of short duration Treasuries with Federal agency notes. The balance of the portfolio resides in floating rate securities that maintain a high level of income with little price fluctuation.(1) HOW DO YOU PLAN TO POSITION THE FUND, BASED ON MARKET CONDITIONS? Since the early part of last year, we have focused on reducing risk at a time when market volatility remains close to all time lows. This absence of volatility breeds an environment which fosters more complacent risk taking--something we are not willing to accept. A greater degree of instability could arise and provide the opportunity to boost returns. We feel strongly that our strategies should continue to pay off if this disregard for risk comes to an end. An overaggressive inflation fighting Fed would provide additional opportunities. Our general view is that spread markets must get cheaper. This would certainly provide the impetus for value to surface. Until then, we will monitor risk and reward closely.(1) PORTFOLIO COMPOSITION (as of March 31, 2006)(1) as a percentage of total investments (PIE CHART) Asset Backed Securities 24.8% U.S. Government Agencies 8.6% U.S. Treasury Obligations 63.2% Repurchase Agreements 3.4%
(1) PORTFOLIO COMPOSITION IS SUBJECT TO CHANGE 19 LIMITED DURATION FUND GROWTH OF $10,000 INVESTMENT (as of March 31, 2006) (PERFORMANCE GRAPH)
Limited Duration Fund Merrill Lynch 3 Month U.S. (I Shares) Treasury Bill Index --------------------- -------------------------- 10/25/2002 10000 10000 12/02 10014 10028 10031 10058 10068 10092 10093 10117 12/03 10111 10143 10140 10167 10155 10191 10188 10229 12/04 10232 10278 10287 10337 10360 10410 10458 10496 12/05 10559 10593 3/06 10671 10701
This chart assumes an initial hypothetical investment of $10,000 made on 10/25/02. Total return is based on net change in N.A.V. (net asset value) assuming reinvestment of distributions. Returns shown on this page include reinvestment of all dividends and other distributions. The Funds performance is compared to the Merrill Lynch 3 Month U.S. Treasury Bill Index which is a widely-recognized index that tracks the performance of 3 Month U.S. Treasury Bills. The index is unmanaged and does not reflect the deduction of fees or taxes associated with a mutual fund, such as investment management and fund accounting fees. Investors cannot invest directly in an index, although they can invest in its underlying securities.
AVERAGE ANNUAL TOTAL RETURNS AS OF 3/31/06 (%) --------------------------- INCEPTION SINCE LIMITED DURATION FUND DATE 1 YEAR 3 YEAR INCEPTION - --------------------- --------- ------ ------ --------- I SHARES 10/25/02 3.73 2.08 1.91 MERRILL LYNCH 3 MONTH U.S. TREASURY BILL INDEX 3.53 2.09 --
PAST PERFORMANCE DOES NOT GUARANTEE FUTURE RESULTS. THE PERFORMANCE DATA QUOTED REPRESENTS PAST PERFORMANCE AND CURRENT RETURNS MAY BE LOWER OR HIGHER. TOTAL RETURN FIGURES INCLUDE CHANGE IN SHARE PRICE, REINVESTMENT OF DIVIDENDS AND CAPITAL GAINS AND DO NOT REFLECT TAXES THAT A SHAREHOLDER WOULD PAY ON FUND DISTRIBUTIONS OR ON THE REDEMPTION OF FUND SHARES. THE INVESTMENT RETURN AND PRINCIPAL VALUE WILL FLUCTUATE SO THAT AN INVESTOR'S SHARES, WHEN REDEEMED MAY BE WORTH MORE OR LESS THAN THE ORIGINAL COST. FOR PERFORMANCE DATA CURRENT TO THE MOST RECENT MONTH END, VISIT OUR WEBSITE AT WWW.STICLASSICFUNDS. COM. + The quoted returns reflect the performance from October 25, 2002 to October 11, 2004 of the Seix Limited Duration Fund, an open-end investment company that was the predecessor fund to the Limited Duration Fund. Effective August 1, 2005, Institutional Shares were renamed I Shares, L Shares and T Shares were merged into I Shares and L Shares and T Shares were no longer offered. 20 LIMITED-TERM FEDERAL MORTGAGE SECURITIES FUND PORTFOLIO MANAGER(S) - - Joseph Calabrese, CFA - - John Talty, CFA INVESTMENT CONCERNS Mutual fund investing involves risk, including possible loss of principal. Bonds offer a relatively stable level of income, although bond prices will fluctuate providing the potential for principal gain or loss. Intermediate-term, higher-quality bonds generally offer less risk than longer-term bonds and a lower rate of return. U.S. Government guarantees apply only to the underlying securities of the Fund's portfolio and not the Fund's shares. The Fund is subject to the risk that principal value reacts in opposition to the movement of interests rates and that a rising interest rate environment increases the risk of loss of principal. MANAGEMENT DISCUSSION & ANALYSIS HOW DID THE FUND PERFORM AGAINST ITS BENCHMARK FOR THE PERIOD ENDED MARCH 31, 2006? For the 12 month period ended March 31, 2006, the Limited-Term Federal Mortgage Securities Fund lagged its benchmark's the merrill Lynch 1-5 Year AAA U.S. Treasury/Agencies Index and the Merrill Lynch 1-5 Year U.S. Treasuries Index with a return of 2.04% (I Shares) versus 2.22% and 2.08% for the indexes, respectively. WHAT FACTORS INFLUENCED THE FUND'S PERFORMANCE FOR THE PERIOD ENDED MARCH 31, 2006? Higher interest rates were a benefit to performance as prepayments slow and mortgages gain favor. Since the index has only government bond exposure, the rise in yields did not have as great an effect on the Fund as compared to the benchmark. The added value of ARMs and the stability of recently dated current coupon mortgages generated a positive contribution.(1) We are making active decisions regarding sector allocations versus the short duration benchmark. We hold no Treasuries, are significantly underweight the Agency sector, and have been predominantly using mortgages to generate a significant income advantage. We have added to our position in Adjustable Rate Mortgagees ("ARMs") with incoming cash flows and the use of monthly paydowns.(1) HOW DO YOU PLAN TO POSITION THE FUND, BASED ON MARKET CONDITIONS? Since the early part of last year, we have focused on reducing risk at a time when market volatility remains close to all time lows. This absence of volatility breeds an environment which fosters more complacent risk taking--something we are not willing to accept without proportional returns. A greater degree of instability could arise and provide the opportunity to boost relative returns. We feel strongly that our strategies should continue to pay off if this disregard for risk comes to an end. Another inversion between two and ten year Treasuries can cause mortgages to cheapen. An overaggressive inflation fighting Fed would provide additional opportunities. Our general view is that spread markets must get cheaper. This would certainly provide the impetus for value to surface. Until then, we will monitor risk and reward closely.(1) PORTFOLIO COMPOSITION (as of March 31, 2006)(1) as a percentage of total investments (PIE CHART) U.S. Government Agencies 7.7% U.S. Government Agency Mortgages 81.8% Short-Term Investment 7.0% Repurchase Agreements 3.5%
(1) PORTFOLIO COMPOSITION IS SUBJECT TO CHANGE 21 LIMITED-TERM FEDERAL MORTGAGE SECURITIES FUND GROWTH OF $10,000 INVESTMENT (as of March 31, 2006) (PERFORMANCE GRAPH)
Limited-Term Federal Merrill Lynch Merrill Lynch Mortgage Securities 1-5 Year U.S. 1-5 Year AAA U.S. Fund (I Shares) Treasuries Index Treasuries/Agencies Index -------------------- ---------------- ------------------------- 3/96 10000 10000 10000 10056 10080 10081 10224 10249 10250 12/96 10421 10461 10462 10455 10498 10501 10704 10755 10759 10926 10996 10998 12/97 11124 11205 11206 11276 11375 11376 11439 11561 11563 11846 12016 12005 12/98 11892 12073 12065 11965 12102 12101 11929 12134 12134 12033 12281 12275 12/99 12041 12319 12319 12163 12487 12476 12355 12710 12700 12681 13003 13005 12/00 13076 13412 13428 13345 13800 13819 13441 13913 13944 14027 14486 14520 12/01 14044 14534 14574 14133 14512 14567 14512 14949 15016 14927 15493 15524 12/02 15097 15620 15673 15240 15727 15789 15413 15901 15967 15269 15943 16004 12/03 15311 15941 16009 15571 16184 16250 15307 15914 15982 15592 16153 16230 12/04 15672 16150 16242 15626 16054 16150 15840 16308 16410 15843 16272 16377 12/05 15915 16374 16477 3/06 15944 16389 16509
This chart assumes an initial hypothetical investment of $10,000 made on 3/31/96. Total return is based on net change in N.A.V. (net asset value) assuming reinvestment of distributions. Returns shown on this page include reinvestment of all dividends and other distributions. The Funds performance is compared to the Merrill Lynch 1-5 Year AAA U.S. Treasuries/Agencies Index and the Merrill Lynch 1-5 Year U.S. Treasuries Index. The Merrill Lynch 1-5 Year AAA U.S. Treasuries/Agencies Index tracks the performance of U.S. government and agency bonds that have a minimum issue size of $150 million. The Merrill Lynch 1-5 Year U.S. Treasuries Index is a widely recognized, capitalization weighted index of U.S. Treasury securities with maturities of one year or greater and no more than 5 years. The indices are unmanaged and do not reflect the deduction of fees or taxes associated with a mutual fund, such as investment management and fund accounting fees. Investors cannot invest directly in an index, although they can invest in its underlying securities.
AVERAGE ANNUAL TOTAL RETURNS AS OF 3/31/06 (%) ---------------------------------- LIMITED-TERM FEDERAL MORTGAGE INCEPTION SECURITIES FUND DATE 1 YEAR 3 YEAR 5 YEAR 10 YEAR - ----------------------------- --------- ------ ------ ------ ------- A SHARES WITHOUT SALES CHARGE 07/18/94 1.93 1.28 3.38 4.51 WITH SALES CHARGE* -0.64 0.43 2.85 4.25 C SHARES WITHOUT CDSC 06/07/95 1.14 0.80 2.97 4.13 WITH CDSC* 0.16 0.80 2.97 4.13 I SHARES 06/06/94 2.04 1.52 3.63 4.78 MERRILL LYNCH 1-5 YEAR AAA U.S. TREASURY/AGENCIES INDEX 2.22 1.50 3.62 5.14 MERRILL LYNCH 1-5 YEAR U. S. TREASURIES INDEX 2.08 1.38 3.50 5.06
PAST PERFORMANCE DOES NOT GUARANTEE FUTURE RESULTS. THE PERFORMANCE DATA QUOTED REPRESENTS PAST PERFORMANCE AND CURRENT RETURNS MAY BE LOWER OR HIGHER. TOTAL RETURN FIGURES INCLUDE CHANGE IN SHARE PRICE, REINVESTMENT OF DIVIDENDS AND CAPITAL GAINS AND DO NOT REFLECT TAXES THAT A SHAREHOLDER WOULD PAY ON FUND DISTRIBUTIONS OR ON THE REDEMPTION OF FUND SHARES. THE INVESTMENT RETURN AND PRINCIPAL VALUE WILL FLUCTUATE SO THAT AN INVESTOR'S SHARES, WHEN REDEEMED MAY BE WORTH MORE OR LESS THAN THE ORIGINAL COST. FOR PERFORMANCE DATA CURRENT TO THE MOST RECENT MONTH END, VISIT OUR WEBSITE AT WWW.STICLASSICFUNDS.COM. * CLASS A SHARE PERFORMANCE REFLECTS THE MAXIMUM FRONT-END SALES CHARGE OF 2.50% AND CLASS C SHARES REFLECT THE MAXIMUM CDSC (CONTINGENT DEFERRED SALES CHARGE) OF 1.00% IN YEAR ONE ONLY. EFFECTIVE AUGUST 1, 2005, L SHARES WERE RENAMED C SHARES AND T SHARES WERE RENAMED I SHARES. 22 MARYLAND MUNICIPAL BOND FUND PORTFOLIO MANAGER - - George E. Calvert, Jr. INVESTMENT CONCERNS Mutual fund investing involves risk, including possible loss of principal. Bonds offer a relatively stable level of income, although bond prices will fluctuate providing the potential for principal gain or loss. Intermediate-term, higher-quality bonds generally offer less risk than longer-term bonds and a lower rate of return. The geographical concentration of portfolio holdings in this fund may involve increased risk. The Fund's income may be subject to certain state and local taxes and, depending on your tax status, the federal alternative minimum tax. The Fund is subject to the risk that principal value reacts in opposition to the movement of interests rates and that a rising interest rate environment increases the risk of loss of principal. MANAGEMENT DISCUSSION & ANALYSIS HOW DID THE FUND PERFORM AGAINST ITS BENCHMARK FOR THE PERIOD ENDED MARCH 31, 2006? For the 12 month period ended March 31, 2006, the Maryland Municipal Bond Fund outperformed, to a minor degree, the Lehman Brothers 10 Year Municipal Bond Index, returning 3.34% ( I Shares) compared to 3.31% for the index. The Fund's duration and maturity exposure continued a more defensive posture over the past year. The longest bonds and the weaker credits out performed but for most of the year we held less than a market weighting in both categories.(1) WHAT FACTORS INFLUENCED THE FUND'S PERFORMANCE FOR THE PERIOD ENDED MARCH 31, 2006? The flattening yield curve that came with rising rates hurt the valuation of bonds due within 10 years the most, while long bonds produced the greatest returns due to the world wide demand for higher yields regardless of maturity or credit. In our opinion, market yields did not provide appropriate spreads for either risk and the more conservative approach generated an average, or lower, total return. (1) HOW DO YOU PLAN TO POSITION THE FUND, BASED ON MARKET CONDITIONS? The Fund's position for 2006-2007 will maintain shorter duration and maturity characteristics as we expect additional increases in rates. We will reduce the Fund's exposure to bonds due past 20 years and make tactical trades in the intermediate range to prepare for the eventual return of the yield curve to a more normal steeper slope.(1) PORTFOLIO COMPOSITION (as of March 31, 2006)(1) as a percentage of total investments (PIE CHART) Municipal Bonds 96.1% Money Market Funds 3.9%
(1) PORTFOLIO COMPOSITION IS SUBJECT TO CHANGE 23 MARYLAND MUNICIPAL BOND FUND GROWTH OF $10,000 INVESTMENT (as of March 31, 2006) (PERFORMANCE GRAPH)
Maryland Municipal Bond Lehman Brothers 10 Year Fund (I Shares) Municipal Bond Index ----------------------- ----------------------- 3/96 10000 10000 9933 10031 10104 10232 12/96 10330 10523 10258 10521 10626 10867 10953 11205 12/97 11238 11495 11342 11614 11481 11789 11842 12192 12/98 11897 12272 11944 12342 11827 12059 11647 12136 12/99 11501 12119 11853 12401 11991 12599 12300 12911 12/00 12802 13423 13070 13735 13149 13795 13497 14202 12/01 13383 14043 13450 14213 13973 14793 14565 15548 12/02 14575 15471 14715 15662 15075 16153 15077 16133 12/03 15189 16353 15390 16616 15069 16220 15543 16892 12/04 15695 17031 15608 16918 16011 17462 15987 17365 12/05 16107 17498 3/06 16129 17478
This chart assumes an initial hypothetical investment of $10,000 made on 3/31/96. Total return is based on net change in N.A.V. (net asset value) assuming reinvestment of distributions. Returns shown on this page include reinvestment of all dividends and other distributions. The Funds performance is compared to the Lehman Brothers 10 Year Municipal Bond Index a widely recognized index of long-term investment grade tax-exempt bonds. The index includes general obligation bonds, revenue bonds, insured bonds and prefunded bonds with maturities between 8 and 12 years. The index is unmanaged and does not reflect the deduction of fees or taxes associated with a mutual fund, such as investment management and fund accounting fees. Investors cannot invest directly in an index, although they can invest in its underlying securities.
AVERAGE ANNUAL TOTAL RETURNS AS OF 3/31/06 (%) ---------------------------------------------- SINCE MARYLAND MUNICIPAL BOND FUND INCEPTION DATE+ 1 YEAR 3 YEAR 5 YEAR 10 YEAR INCEPTION - ---------------------------- --------------- ------ ------ ------ ------- --------- A SHARES WITHOUT SALES CHARGE 04/13/2005 2.88 2.95 4.20 4.85 4.47 WITH SALES CHARGE* -1.99 1.30 3.19 4.34 3.97 C SHARES WITHOUT CDSC 04/25/96 2.30 2.11 3.31 -- 4.09 WITH CDSC* 1.32 2.11 3.31 -- 4.09 I SHARES 03/01/96 3.34 3.10 4.30 4.90 4.52 LEHMAN BROTHERS 10 YEAR MUNICIPAL BOND INDEX 3.31 3.72 4.94 5.74 --
PAST PERFORMANCE DOES NOT GUARANTEE FUTURE RESULTS. THE PERFORMANCE DATA QUOTED REPRESENTS PAST PERFORMANCE AND CURRENT RETURNS MAY BE LOWER OR HIGHER. TOTAL RETURN FIGURES INCLUDE CHANGE IN SHARE PRICE, REINVESTMENT OF DIVIDENDS AND CAPITAL GAINS AND DO NOT REFLECT TAXES THAT A SHAREHOLDER WOULD PAY ON FUND DISTRIBUTIONS OR ON THE REDEMPTION OF FUND SHARES. THE INVESTMENT RETURN AND PRINCIPAL VALUE WILL FLUCTUATE SO THAT AN INVESTOR'S SHARES, WHEN REDEEMED MAY BE WORTH MORE OR LESS THAN THE ORIGINAL COST. FOR PERFORMANCE DATA CURRENT TO THE MOST RECENT MONTH END, VISIT OUR WEBSITE AT WWW.STICLASSICFUNDS.COM. * CLASS A SHARE PERFORMANCE REFLECTS THE MAXIMUM FRONT-END SALES CHARGE OF 4.75% AND CLASS C SHARES REFLECT THE MAXIMUM CDSC (CONTINGENT DEFERRED SALES CHARGE) OF 1.00% IN YEAR ONE ONLY. EFFECTIVE AUGUST 1, 2005, L SHARES WERE RENAMED C SHARES AND T SHARES WERE RENAMED I SHARES. + The A Shares were offered beginning on 4/14/05. The A Shares performance between 3/1/96 to 4/14/05 is that of the Class I Shares (formerly T Shares) of the Fund, and has not been adjusted to reflect A Share expenses. If it had been performance would have been lower. 24 NORTH CAROLINA TAX-EXEMPT BOND FUND PORTFOLIO MANAGER - - Chris Carter, CFA INVESTMENT CONCERNS Mutual fund investing involves risk, including possible loss of principal. Bonds offer a relatively stable level of income, although bond prices will fluctuate providing the potential for principal gain or loss. Intermediate-term, higher-quality bonds generally offer less risk than longer-term bonds and a lower rate of return. The geographical concentration of portfolio holdings in this fund may involve increased risk. The Fund's income may be subject to certain state and local taxes and, depending on your tax status, the federal alternative minimum tax. The Fund is subject to the risk that principal value reacts in opposition to the movement of interests rates and that a rising interest rate environment increases the risk of loss of principal. MANAGEMENT DISCUSSION & ANALYSIS HOW DID THE FUND PERFORM AGAINST ITS BENCHMARK FOR THE PERIOD ENDED MARCH 31, 2006? For the 12 months ended March 31, 2006, the North Carolina Tax-Exempt Bond Fund had a total return of 3.51% (I Shares) versus a return of 3.31% for the Lehman Brothers 10 Year Municipal Bond Index. The Fund's "barbell" yield curve strategy contributed largely to its outperformance. As envisioned in last year's Annual Report, the past 12 months was spent reducing the Fund's percentage of assets invested in bonds with final maturities from 8 to 16 years and increasing exposure to 15-year and longer paper. This objective was achieved, and the performance benefit realized, with the Fund eventually achieving an overweight of 0 to 2-year and 15-year and longer paper. 5 and 10-year generic AAA rated municipal bond yields increased 39 and 15 basis (0.39% and 0.15%) respectively, over the 12 months, while 30-year yields declined 10 basis points (0.10%). The 2-year to 30-year municipal bond yield curve flattened 89 basis points to 94 basis points (0.89% to 0.94%) of slope. WHAT FACTORS INFLUENCED THE FUND'S PERFORMANCE FOR THE PERIOD ENDED MARCH 31, 2006? The primary factor behind the Fund's outperformance was its high relative allocation to callable bonds with 5% or greater coupons and final maturities exceeding 15 years.(1) HOW DO YOU PLAN TO POSITION THE FUND, BASED ON MARKET CONDITIONS? The Fund continues to favor premium bonds (prices greater than par) for their income benefit and relative price stability. All activity will occur within an investment grade construct and the average credit quality of Fund holdings should remain high.(1) PORTFOLIO COMPOSITION (as of March 31, 2006)(1) as a percentage of total investments (PIE CHART) Money Market Funds 3.8% Municipal Bonds 96.2%
(1) PORTFOLIO COMPOSITION IS SUBJECT TO CHANGE 25 NORTH CAROLINA TAX-EXEMPT BOND FUND GROWTH OF $10,000 INVESTMENT (as of March 31, 2006) (PERFORMANCE GRAPH)
North Carolina Tax-Exempt Bond Fund (I Shares) Lehman Brothers 10 Year Municipal Bond Index ---------------------------------------------- -------------------------------------------- 1/8/2004 10000 10000 10133 10161 9872 9919 10282 10330 12/04 10349 10415 10239 10346 10565 10678 10520 10619 12/05 10586 10700 3/06 10598 10688
This chart assumes an initial hypothetical investment of $10,000 made on 1/8/04. Total return is based on net change in N.A.V. (net asset value) assuming reinvestment of distributions. Returns shown on this page include reinvestment of all dividends and other distributions. The Funds performance is compared to the Lehman Brothers 10 Year Municipal Bond Index a widely recognized index of long-term investment grade tax-exempt bonds. The index includes general obligation bonds, revenue bonds, insured bonds and prefunded bonds with maturities between 8 and 12 years. The index is unmanaged and does not reflect the deduction of fees or taxes associated with a mutual fund, such as investment management and fund accounting fees. Investors cannot invest directly in an index, although they can invest in its underlying securities.
AVERAGE ANNUAL TOTAL RETURNS AS OF 3/31/06 (%) ---------------------------------------------- NORTH CAROLINA SINCE TAX-EXEMPT BOND FUND INCEPTION DATE+ 1 YEAR INCEPTION - -------------------- --------------- ------ --------- A SHARES WITHOUT SALES CHARGE 01/08/04 3.85 2.81 WITH SALES CHARGE* 1.06 0.58 C SHARES WITHOUT CDSC 01/08/04 3.23 2.53 WITH CDSC* 2.23 2.53 I SHARES 01/08/04 3.51 2.64 LEHMAN BROTHERS 10 YEAR MUNICIPAL BOND INDEX 3.31 --
PAST PERFORMANCE DOES NOT GUARANTEE FUTURE RESULTS. THE PERFORMANCE DATA QUOTED REPRESENTS PAST PERFORMANCE AND CURRENT RETURNS MAY BE LOWER OR HIGHER. TOTAL RETURN FIGURES INCLUDE CHANGE IN SHARE PRICE, REINVESTMENT OF DIVIDENDS AND CAPITAL GAINS AND DO NOT REFLECT TAXES THAT A SHAREHOLDER WOULD PAY ON FUND DISTRIBUTIONS OR ON THE REDEMPTION OF FUND SHARES. THE INVESTMENT RETURN AND PRINCIPAL VALUE WILL FLUCTUATE SO THAT AN INVESTOR'S SHARES, WHEN REDEEMED MAY BE WORTH MORE OR LESS THAN THE ORIGINAL COST. FOR PERFORMANCE DATA CURRENT TO THE MOST RECENT MONTH END, VISIT OUR WEBSITE AT WWW.STICLASSICFUNDS.COM. * CLASS A SHARE PERFORMANCE REFLECTS THE MAXIMUM FRONT-END SALES CHARGE OF 4.75% AND CLASS C SHARES REFLECT THE MAXIMUM CDSC (CONTINGENT DEFERRED SALES CHARGE) OF 1.00% IN YEAR ONE ONLY. EFFECTIVE AUGUST 1, 2005, L SHARES WERE RENAMED C SHARES AND T SHARES WERE RENAMED I SHARES. + The Fund began operations on March 21, 2005. Performance from January 8, 2004 to March 21, 2005 is that of the CCMI Tax-Exempt North Carolina Bond Fund, the Fund's predecessor. 26 SEIX HIGH YIELD FUND (formerly Seix Institutional High Yield Fund) PORTFOLIO MANAGER(S) - - George Goudelias - - Michael McEachern, CFA INVESTMENT CONCERNS Mutual fund investing involves risk, including possible loss of principal. Bond Funds will tend to experience smaller fluctuations in value than stock funds. However, investors in any bond fund should anticipate fluctuations in price, especially for longer-term issues and in environments of rising interest rates. Although the Fund's yield may be higher than that of fixed income funds that purchase higher-rated securities, the potentially higher yield is a function of the greater risk that the fund's share price will decline. MANAGEMENT DISCUSSION & ANALYSIS HOW DID THE FUND PERFORM AGAINST ITS BENCHMARK FOR THE PERIOD ENDED MARCH 31, 2006? For the 12 month period ended March 31, 2006, the Seix High Yield Fund lagged its benchmark, the Merrill Lynch High Yield Master Index. The Fund produced a return of 5.37% (I Shares) versus 7.30% for the index. WHAT FACTORS INFLUENCED THE FUND'S PERFORMANCE FOR THE PERIOD ENDED MARCH 31, 2006? The Funds underperformance was due to its higher quality profile versus its benchmark. During the past year, very strong returns from the lowest quality bonds boosted the Merrill Lynch High Yield Master Index return. The Fund does not hold securities with a rating lower than B.(1) The January effect was in full force during the first quarter when the riskiest assets in all sectors were the best performers. In equities, Small Cap Indexes soared and the Russell 2000(R) Index(2) was up 14.0% compared to 4.3% for the Dow Jones Industrial Average(2) and the S&P 500 Index(2). In bonds, the CCC return was 4.6% versus 0.8% for BB's ex Autos. Investment Grade benchmark returns were all negative. The portfolio's higher quality positioning hurt relative returns in the first quarter when lower quality outperformed and GM and Ford bonds recovered from a difficult fourth quarter. The Auto sector was helped by anticipation of the long awaited announcement of a GM deal to sell a majority stake in GMAC. Also, relatively stable demand for High Yield combined with a surprising decrease in net supply to push already narrow yield spreads tighter. Supply has fallen for a number of positive fundamental reasons - calls, tenders, maturities and upgrades. In addition, with the maturation of the Bank Loan market, issuers have shunned borrowing through High Yield bonds and taken advantage of the opportunity to diversify funding using the floating rate feature of Loans.(1) HOW DO YOU PLAN TO POSITION THE FUND, BASED ON MARKET CONDITIONS? In order to protect the portfolio's downside from a retreat in credit spreads, we continue to avoid the volatile Auto sector and remain overweighted in Energy, Media and Utilities. Our rigorous research process paid off again this quarter when the auto supplier Dana defaulted. We recognized early on the difficult industry fundamentals facing Dana and had avoided the credit for over two years. Our bottom up strategy continues to identify the weakest credits and those with the best potential for upgrade.(1) PORTFOLIO COMPOSITION (as of March 31, 2006)(1) as a percentage of total investments (PIE CHART) Corporate Bonds 82.7% U.S. Treasury Obligations 3.0% Short-Term Investments 8.2% Repurchase Agreements 1.8% Bank Loans 4.2% Money Market Funds 0.1%
(1) PORTFOLIO COMPOSITION IS SUBJECT TO CHANGE 27 SEIX HIGH YIELD FUND GROWTH OF $10,000 INVESTMENT (as of March 31, 2006) (PERFORMANCE GRAPH)
Seix High Yield Merrill Lynch High Fund (I Shares) Yield Master Index --------------- ------------------ 12/29/2000 10000 10000 12/00 10000 10596 10578 10621 10699 10487 10708 10063 12/01 11129 10620 11301 10828 11332 10163 11405 9843 12/02 11834 10499 12334 11223 12987 12309 13105 12620 12/03 13676 13357 13968 13656 13745 13536 14409 14163 12/04 14817 14795 14571 14583 14963 14976 15061 15111 12/05 15206 15214 3/06 15353 15648
This chart assumes an initial hypothetical investment of $10,000 made on 12/29/00. Total return is based on net change in N.A.V. (net asset value) assuming reinvestment of distributions. Returns shown on this page include reinvestment of all dividends and other distributions. The Funds performance is compared to the Merrill Lynch High Yield Master Index which is a widely-recognized index of U.S. high yield corporate bond issues having maturities of at least one year. The index does not reflect the deduction of fees or taxes associated with a mutual fund, such as investment management and fund accounting fees. Investors cannot invest directly in an index, although they can invest in its underlying securities.
AVERAGE ANNUAL TOTAL RETURNS AS OF 3/31/06 (%) ------------------------------------ INCEPTION SINCE SEIX HIGH YIELD FUND DATE 1 YEAR 3 YEAR 5 YEAR INCEPTION - -------------------- --------- ------ ------ ------ --------- A SHARES WITHOUT SALES CHARGE 12/21/01 5.22 7.34 7.73 8.27 WITH SALES CHARGE* 0.26 5.62 6.68 7.27 C SHARES WITHOUT CDSC 10/11/04 4.45 7.11 7.70 8.24 WITH CDSC* 3.47 7.11 7.70 8.24 I SHARES 12/29/00 5.37 7.57 7.97 8.51 MERRILL LYNCH HIGH YIELD MASTER INDEX 7.31 11.72 8.06 --
PAST PERFORMANCE DOES NOT GUARANTEE FUTURE RESULTS. THE PERFORMANCE DATA QUOTED REPRESENTS PAST PERFORMANCE AND CURRENT RETURNS MAY BE LOWER OR HIGHER. TOTAL RETURN FIGURES INCLUDE CHANGE IN SHARE PRICE, REINVESTMENT OF DIVIDENDS AND CAPITAL GAINS AND DO NOT REFLECT TAXES THAT A SHAREHOLDER WOULD PAY ON FUND DISTRIBUTIONS OR ON THE REDEMPTION OF FUND SHARES. THE INVESTMENT RETURN AND PRINCIPAL VALUE WILL FLUCTUATE SO THAT AN INVESTOR'S SHARES, WHEN REDEEMED MAY BE WORTH MORE OR LESS THAN THE ORIGINAL COST. FOR PERFORMANCE DATA CURRENT TO THE MOST RECENT MONTH END, VISIT OUR WEBSITE AT WWW.STICLASSICFUNDS.COM. * CLASS A SHARE PERFORMANCE REFLECTS THE MAXIMUM FRONT-END SALES CHARGE OF 4.75% AND CLASS C SHARES REFLECT THE MAXIMUM CDSC (CONTINGENT DEFERRED SALES CHARGE) OF 1.00% IN YEAR ONE ONLY. EFFECTIVE AUGUST 1, 2005, L SHARES WERE RENAMED C SHARES, INSTITUTIONAL SHARES WERE RENAMED I SHARES, T SHARES MERGED INTO I SHARES AND T SHARES WERE NO LONGER OFFERED. + The quoted returns reflect the performance from December 29, 2000 to October 11, 2004 of the Seix High Yield Fund, an open-end investment company that was the predecessor fund to the High Yield Fund. Performance for the I Shares, which commenced operations on October 11, 2004, is the historical performance of the Seix High Yield prior to that date. Performance for the C Shares, which commenced operations on October 11, 2004, is the historical performance of the Seix High Yield Fund's Class I Shares prior to that date. The historical performance has not been adjusted to reflect the Fund's C Share expenses. If it had been, the performance would have been lower. The Class A Shares began operating on October 11, 2004. Performance between December 29, 2000 to December 21, 2001 and December 21, 2001 to October 11, 2004 is that of the Class I Shares and Class P Shares, respectively, of the Seix Core Bond Fund, the Fund's predecessor. The performance of the predecessor fund's Class I Shares has not been adjusted to reflect the Fund's A Share expenses. If it had been, the performance would have been lower. (2) Russell 2000 Index Measures the performance of the 2,000 smallest companies in the Russell 3000 Index, which represents approximately 8% of the total market capitalization of the Russell 3000 Index. The companies which comprise this index have high price-to-book ratios and higher forecasted growth values. Dow Jones Industrial Average is a price-weighted average based on the price-only performance of 30 blue chip stocks (The average is computed by adding the prices of the 30 stocks and dividing by a denominator, which has been adjusted over the years for stocks splits, stock dividends and substitutions of stocks). 28 SHORT-TERM BOND FUND PORTFOLIO MANAGER(S) - - Robert W. Corner - - H. Rick Nelson INVESTMENT CONCERNS Mutual fund investing involves risk, including possible loss of principal. Bonds offer a relatively stable level of income, although bond prices will fluctuate providing the potential for principal gain or loss. Intermediate-term, higher-quality bonds generally offer less risk than longer-term bonds and a lower rate of return. The Fund is subject to the risk that principal value reacts in opposition to the movement of interests rates and that a rising interest rate environment increases the risk of loss of principal. MANAGEMENT DISCUSSION & ANALYSIS HOW DID THE FUND PERFORM AGAINST ITS BENCHMARK FOR THE PERIOD ENDED MARCH 31, 2006? For the 12 month period ended March 31, 2006, the Short-Term Bond Fund outperformed its benchmark index by 68 basis points (0.68%) with a 3.24% (I Shares) total return versus 2.56% for the Citigroup 1-3 Year Government/Credit Index. WHAT FACTORS INFLUENCED THE FUND'S PERFORMANCE FOR THE PERIOD ENDED MARCH 31, 2006? The Funds performance was in line with the stated benchmark index until February 2006 when the Fund received a settlement for the WorldCom bonds that defaulted in 2002. HOW DO YOU PLAN TO POSITION THE FUND, BASED ON MARKET CONDITIONS? The Fund is underweight Treasury and Agency securities, has a neutral weighting in corporates and an overweight in structured product. We plan to increase our government weighting if spreads and volatility stays low or goes lower. Conversely we would add corporate bonds if spreads widen. The Fund is currently neutral duration but if economic direction becomes clearer the Fund would shift average life to take advantage of future rates.(1) PORTFOLIO COMPOSITION (as of March 31, 2006)(1) as a percentage of total investments (PIE CHART) Asset Backed Securities 5.3% Collateralized Mortgage Obligations 6.9% Commercial Papers 1.3% Corporate Bonds 22.6% U.S. Government Agencies 16.2% U.S. Government Agency Mortgages 11.3% U.S. Treasury Obligations 13.0% Short-Term Investments 21.9% Money Market Funds 1.5%
(1) PORTFOLIO COMPOSITION IS SUBJECT TO CHANGE 29 SHORT-TERM BOND FUND GROWTH OF $10,000 INVESTMENT (as of March 31, 2006) (PERFORMANCE GRAPH)
Short-Term Bond Citigroup 1-3 Year Fund (I Shares) Government/Credit Index --------------- ----------------------- 3/96 10000 10000 10065 10105 10220 10275 12/96 10416 10470 10439 10543 10679 10774 10916 10988 12/97 11122 11168 11271 11335 11456 11511 11816 11850 12/98 11884 11947 11899 12037 11860 12107 11956 12256 12/99 11993 12339 12147 12495 12333 12706 12643 13003 12/00 12909 13345 13327 13745 13466 13930 13986 14415 12/01 13882 14527 13818 14533 13832 14883 14021 15250 12/02 14241 15437 14392 15577 14531 15766 14581 15841 12/03 14601 15882 14733 16070 14579 15891 14725 16074 12/04 14744 16089 14720 16048 14873 16248 14887 16273 12/05 14990 16382 3/06 15197 16459
This chart assumes an initial hypothetical investment of $10,000 made on 3/31/96. Total return is based on net change in N.A.V. (net asset value) assuming reinvestment of distributions. Returns shown on this page include reinvestment of all dividends and other distributions. The Funds performance is compared to the Citigroup 1-3 Year Government/Credit Index a widely recognized index of U.S. Treasury securities, government agency obligations, and corporate debt securities rated at least investment grade (BBB). The securities in the index have maturities of one year or greater and less than three years. The index is unmanaged and does not reflect the deduction of fees or taxes associated with a mutual fund, such as investment management and fund accounting fees. Investors cannot invest directly in an index, although they can invest in its underlying securities.
AVERAGE ANNUAL TOTAL RETURNS AS OF 3/31/06 (%) INCEPTION ---------------------------------- SHORT-TERM BOND FUND DATE 1 YEAR 3 YEAR 5 YEAR 10 YEAR - -------------------- --------- ------ ------ ------ ------- A SHARES WITHOUT SALES CHARGE 03/22/93 3.01 1.58 2.44 4.07 WITH SALES CHARGE* 0.44 0.71 1.92 3.80 C SHARES WITHOUT CDSC 06/20/95 2.34 1.15 2.03 3.69 WITH CDSC* 1.34 1.15 2.03 3.69 I SHARES WITHOUT LOAD 03/15/93 3.24 1.83 2.66 4.27 CITIGROUP 1-3 YEAR GOVERNMENT/ CREDIT INDEX 2.56 1.85 3.67 5.10
PAST PERFORMANCE DOES NOT GUARANTEE FUTURE RESULTS. THE PERFORMANCE DATA QUOTED REPRESENTS PAST PERFORMANCE AND CURRENT RETURNS MAY BE LOWER OR HIGHER. TOTAL RETURN FIGURES INCLUDE CHANGE IN SHARE PRICE, REINVESTMENT OF DIVIDENDS AND CAPITAL GAINS AND DO NOT REFLECT TAXES THAT A SHAREHOLDER WOULD PAY ON FUND DISTRIBUTIONS OR ON THE REDEMPTION OF FUND SHARES. THE INVESTMENT RETURN AND PRINCIPAL VALUE WILL FLUCTUATE SO THAT AN INVESTOR'S SHARES, WHEN REDEEMED MAY BE WORTH MORE OR LESS THAN THE ORIGINAL COST. FOR PERFORMANCE DATA CURRENT TO THE MOST RECENT MONTH END, VISIT OUR WEBSITE AT WWW.STICLASSICFUNDS.COM. * CLASS A SHARE PERFORMANCE REFLECTS THE MAXIMUM FRONT-END SALES CHARGE OF 2.50% AND CLASS C SHARES REFLECT THE MAXIMUM CDSC (CONTINGENT DEFERRED SALES CHARGE) OF 1.00% IN YEAR ONE ONLY. EFFECTIVE AUGUST 1, 2005, L SHARES WERE RENAMED C SHARES AND T SHARES WERE RENAMED I SHARES. 30 SHORT-TERM U.S. TREASURY SECURITIES FUND PORTFOLIO MANAGER(S) - - H. Rick Nelson - - Chad Stephens INVESTMENT CONCERNS Mutual fund investing involves risk, including possible loss of principal. Bonds offer a relatively stable level of income, although bond prices will fluctuate providing the potential for principal gain or loss. Intermediate-term, higher-quality bonds generally offer less risk than longer-term bonds and a lower rate of return. U.S. Government guarantees apply only to the underlying securities of the Fund's portfolio and not the Fund's shares. The Fund is subject to the risk that principal value reacts in opposition to the movement of interests rates and that a rising interest rate environment increases the risk of loss of principal. MANAGEMENT DISCUSSION & ANALYSIS HOW DID THE FUND PERFORM AGAINST ITS BENCHMARK FOR THE PERIOD ENDED MARCH 31, 2006? For the 12 month period ended March 31, 2006, the Short-Term U.S. Treasury Securities Fund returned 1.70% (I Shares) versus 2.30% and 3.54% for its benchmarks the Citigroup 1-3 Year Treasury Index and the Citigroup 6 Month Treasury Bill Index, respectively. The most prominent factor influencing underperformed over the past year was that of a flattening yield curve due to Federal Reserve (the "Fed") tightening. Short-term yields rose more than long-term yields as the Fed tightened monetary policy by 25 basis points (0.25%) at each of their eight meetings. The federal funds rate ended the year at 4.75%, up from 2.75% at the beginning of the year while the two year U.S. Treasury note rose 103 basis points (1.03%) to 4.82% from 3.78%. In contrast, the 10-year U.S. Treasury note rose only 37 basis points (0.37%) to end the year at 4.85%, up from 4.48%. WHAT FACTORS INFLUENCED THE FUND'S PERFORMANCE FOR THE PERIOD ENDED MARCH 31, 2006? The Fund slightly underperformed its benchmark index for the period; the underperformance was due primarily to management fees, which are associated with a mutual fund but not associated with the Citigroup 1-3 Year Treasury Index. The difference in performance versus our shorter duration index the Citigroup 6 Month Treasury Bill Index is not only fees but also was due to the Fund having a longer duration in a rising rate environment. The Fund maintained a conservative duration of about 1.6 years during the beginning of the year and slowly added to duration as rates rose. Duration at the end of the year had been pushed out to 1.75 years. The Fund would probably have performed even better relative to its peer group if we had maintained a shorter duration. However, not extending duration to the Fund's maximum permitted duration of 2.0 years kept returns very competitive.(1) HOW DO YOU PLAN TO POSITION THE FUND, BASED ON MARKET CONDITIONS? The Fund will continue to be managed in line with the 1-3 Treasury index. PORTFOLIO COMPOSITION (as of March 31, 2006)(1) as a percentage of total investments (PIE CHART) Money Market Funds 1.0% U.S. Treasury Obligations 99.0%
(1) PORTFOLIO COMPOSITION IS SUBJECT TO CHANGE 31 SHORT-TERM U.S. TREASURY SECURITIES FUND GROWTH OF $10,000 INVESTMENT (as of March 31, 2006) (PERFORMANCE GRAPH)
Short-Term U.S. Treasury Securities Fund Citigroup 1-3 Year Citigroup 6 Month (I Shares) Treasury Index Treasury Bill Index --------------- ------------------ ------------------- 3/96 10000 10000 10000 10091 10104 10129 10242 10272 10263 12/96 10407 10465 10401 10458 10535 10536 10674 10764 10676 10861 10975 10820 12/97 11017 11160 10965 11168 11321 11109 11321 11495 11255 11613 11849 11403 12/98 11705 11938 11544 11763 12011 11675 11811 12079 11807 11944 12233 11948 12/99 12022 12302 12098 12156 12455 12261 12322 12669 12440 12544 12936 12633 12/00 12821 13286 12832 13128 13655 13019 13250 13813 13177 13600 14282 13306 12/01 13660 14390 13408 13648 14385 13480 13919 14733 13544 14173 15088 13607 12/02 14290 15221 13664 14362 15308 13710 14433 15417 13751 14458 15484 13789 12/03 14485 15507 13824 14570 15661 13860 14433 15491 13896 14515 15641 13942 12/04 14512 15644 14005 14496 15602 14084 14624 15780 14182 14619 15793 14297 12/05 14712 15902 14429 3/06 14742 15961 14578
This chart assumes an initial hypothetical investment of $10,000 made on 3/31/96. Total return is based on net change in N.A.V. (net asset value) assuming reinvestment of distributions. Returns shown on this page include reinvestment of all dividends and other distributions. The Funds performance is compared to the Citigroup 1-3 Year Treasury Index and the Citigroup 6 Month Treasury Bill Index. The Citigroup 1-3 Year Treasury Index is a widely recognized index of U.S. Treasury securities with maturities of one year or greater and less than three years. The Citigroup 6 Month Treasury Bill Index tracks the performance of 6 month U.S. Treasury Bills. The indices are unmanaged and do not reflect the deduction of fees or taxes associated with a mutual fund, such as investment management and fund accounting fees. Investors cannot invest directly in an index, although they can invest in its underlying securities.
AVERAGE ANNUAL TOTAL RETURNS AS OF 3/31/06 (%) SHORT-TERM U.S. TREASURY ---------------------------------- SECURITIES FUND INCEPTION DATE 1 YEAR 3 YEAR 5 YEAR 10 YEAR ------------------------ -------------- ------ ------ ------ ------- A SHARES WITHOUT SALES CHARGE 03/18/93 1.52 0.70 2.16 3.78 WITH SALES CHARGE* -0.98 -0.13 1.65 3.53 C SHARES WITHOUT CDSC 06/22/95 0.88 0.32 1.85 3.51 WITH CDSC* -0.11 0.32 1.85 3.51 I SHARES 03/15/93 1.70 0.88 2.35 3.96 CITIGROUP 1-3 YEAR TREASURY INDEX 2.30 1.40 3.17 4.78 CITIGROUP 6 MONTH TREASURY BILL INDEX 3.54 2.08 2.42 4.02
PAST PERFORMANCE DOES NOT GUARANTEE FUTURE RESULTS. THE PERFORMANCE DATA QUOTED REPRESENTS PAST PERFORMANCE AND CURRENT RETURNS MAY BE LOWER OR HIGHER. TOTAL RETURN FIGURES INCLUDE CHANGE IN SHARE PRICE, REINVESTMENT OF DIVIDENDS AND CAPITAL GAINS AND DO NOT REFLECT TAXES THAT A SHAREHOLDER WOULD PAY ON FUND DISTRIBUTIONS OR ON THE REDEMPTION OF FUND SHARES. THE INVESTMENT RETURN AND PRINCIPAL VALUE WILL FLUCTUATE SO THAT AN INVESTOR'S SHARES, WHEN REDEEMED MAY BE WORTH MORE OR LESS THAN THE ORIGINAL COST. FOR PERFORMANCE DATA CURRENT TO THE MOST RECENT MONTH END, VISIT OUR WEBSITE AT WWW.STICLASSICFUNDS.COM. * CLASS A SHARE PERFORMANCE REFLECTS THE MAXIMUM FRONT-END SALES CHARGE OF 2.50% AND CLASS C SHARES REFLECT THE MAXIMUM CDSC (CONTINGENT DEFERRED SALES CHARGE) OF 1.00% IN YEAR ONE ONLY. EFFECTIVE AUGUST 1, 2005, L SHARES WERE RENAMED C SHARES AND T SHARES WERE RENAMED I SHARES. 32 STRATEGIC INCOME FUND PORTFOLIO MANAGER(S) - - Michael McEachern, CFA - - Adrien Webb, CFA INVESTMENT CONCERNS Mutual fund investing involves risk, including possible loss of principal. Bonds offer a relatively stable level of income, although bond prices will fluctuate providing the potential for principal gain or loss. Intermediate-term, higher-quality bonds generally offer less risk than longer-term bonds and a lower rate of return. U.S. Government guarantees apply only to the underlying securities of the Fund's portfolio and not the Fund's shares. Although the fund's yield may be higher than that of fixed income funds that purchase higher-rated securities, the potentially higher yield is a function of the greater risk that the fund's share price will decline. International investing involves increased risk and volatility. The Fund is subject to the risk that principal value reacts in opposition to the movement of interests rates and that a rising interest rate environment increases the risk of loss of principal. MANAGEMENT DISCUSSION & ANALYSIS HOW DID THE FUND PERFORM AGAINST ITS BENCHMARK FOR THE PERIOD ENDED MARCH 31, 2006? For the 12 month period ended March 31, 2006, the Strategic Income Fund lagged its benchmark with a return of 0.19% (I Shares) versus 3.53% for the Strategic Income Hybrid Index. The Fund uses a hybrid blended benchmark of 34% of the Merrill Lynch AAA U.S. Treasury/Agency Master Index, 33% of the Merrill Lynch U.S. High Yield Master Index and 33% of the Merrill Lynch AAA Global Government Bond II ex U.S. Index for performance comparison purposes. WHAT FACTORS INFLUENCED THE FUND'S PERFORMANCE FOR THE PERIOD ENDED MARCH 31, 2006? The performance of the Fund was impacted by several factors during the quarter. First of all, the high yield segment was underweight assets of the major domestic auto makers and their financial subsidiaries, which rallied in the period. Secondly, the foreign exchange element of the fund benefited from both the weakness in the U.S. dollar and investments in assets denominated in the Euro and the Swedish Krona. After the strong fourth quarter the U.S. dollar finally fell off, thereby enabling our short position in the dollar to add significant value. Thirdly, the U.S. Government portion of the fund was neutral to the index. And finally, investments in emerging market debt were also essentially flat. (1) HOW DO YOU PLAN TO POSITION THE FUND, BASED ON MARKET CONDITIONS? Going forward we continue to take a somewhat defensive stand in credit and expect the dollar to continue its underperformance, with the major beneficiaries being the Japanese Yen and the Euro. In fact, the Fund ended the quarter with commitments to these two currencies.(1) PORTFOLIO COMPOSITION (as of March 31, 2006)(1) as a percentage of total investments (PIE CHART) Bank Loans 1.0% Corporate Bonds 21.7% Foreign Government Bonds 23.8% Preferred Stock 0.3% Short Term Investments 27.5% U.S. Treasury Obligations 25.7%
(1) PORTFOLIO COMPOSITION IS SUBJECT TO CHANGE 33 STRATEGIC INCOME FUND GROWTH OF $10,000 INVESTMENT (as of March 31, 2006) (PERFORMANCE GRAPH)
Merrill Lynch AAA Merrill Lynch AAA Merrill Lynch U.S. Strategic Income Fund U.S. Treasury/ Global Government High Yield Master II Strategic Income (I Shares) Agency Master Index Bond II ex U.S. Index Index Hybrid Index --------------------- ------------------- --------------------- -------------------- ---------------- 11/30/2001 10000 10000 10000 10000 10000 12/01 9906 9912 9920 9921 9842 9946 9851 9892 10093 9823 9850 10282 10127 9389 10184 9837 10953 10472 9106 10406 12/02 10261 11032 10645 9733 10885 10533 11145 10799 10429 11318 11059 11420 10944 11474 11951 11129 11335 10844 11774 12126 12/03 11441 11293 10848 12473 12617 11725 11614 11028 12745 12894 11520 11273 10904 12643 12587 11957 11625 11171 13228 13053 12/04 12662 11679 11418 13829 13722 12446 11633 11555 13630 13502 12526 12029 11926 13986 13658 12481 11911 11954 14114 13598 12/05 12468 11989 12057 14208 13545 3/06 12469 11883 11956 14615 13629
This chart assumes an initial hypothetical investment of $10,000 made on 11/30/01. Total return is based on net change in N.A.V. (net asset value) assuming reinvestment of distributions. Returns shown on this page include reinvestment of all dividends and other distributions. The Funds performance is compared to the Strategic Income Hybrid Index a blended hybrid index which consists of 33% of the Merrill Lynch AAA U.S. Treasury/Agency Master Index, 34% of the Merrill Lynch U.S. High Yield Master II Index and 33% of the Merrill Lynch AAA Global Government Bond II ex U.S. Index. The Merrill Lynch AAA U.S. Treasury/Agency Master Index, the Merrill Lynch U.S. High Yield Master II Index and the Merrill Lynch AAA Global Government Bond II ex U.S. Index. The Merrill Lynch AAA U.S. Treasury/Agency Master Index is a widely-recognized U.S. government index that tracks the performance of the combined U.S. Treasury and U.S. agency markets. It includes U.S. dollar-denominated, U.S. Treasury and U.S. agency bonds, issued in the U.S. domestic bond market, having a at least one year remaining term to maturity, a fixed coupon schedule and a minimum amount outstanding of $1 billion for U.S. Treasuries and $150 million for U.S. agencies. The Merrill Lynch U.S. High Yield Master II Index is a widely-recognized, market-value weighted index that tracks the performance of below investment grade U.S. dollar-denominated corporate bonds publicly issued in the U.S. domestic market. The Merrill Lynch Global Government Bond II ex U.S. Index is a widely recognized subset of the Merrill Lynch Global Government bond Index including Belgian, Danish, Irish, Italian, New Zealand, Portuguese, Spanish and Swedish returns. The indices are unmanaged and do not reflect the deduction of fees or taxes associated with a mutual fund, such as investment management and fund accounting fees. Investors cannot invest directly in an index, although they can invest in its underlying securities.
AVERAGE ANNUAL TOTAL RETURNS AS OF 3/31/06 (%) ---------------------------- SINCE STRATEGIC INCOME FUND INCEPTION DATE 1 YEAR 3 YEAR INCEPTION - --------------------- -------------- ------ ------ --------- A SHARES WITHOUT SALES CHARGE 10/8/03 -0.01 -- 4.62 WITH SALES CHARGE* -4.74 -- 2.57 C SHARES WITHOUT CDSC 11/30/01 -0.57 5.14 4.63 WITH CDSC* -1.51 5.14 4.63 I SHARES 11/30/01 0.19 5.79 5.23 MERRILL LYNCH AAA U.S. TREASURY/AGENCY MASTER INDEX 2.16 2.16 -- MERRILL LYNCH U.S. HIGH YIELD MASTER II INDEX 7.23 11.91 -- MERRILL LYNCH AAA GLOBAL GOVERNMENT BOND II EX U.S. INDEX 3.47 3.45 -- STRATEGIC INCOME HYBRID INDEX 3.53 5.50 --
PAST PERFORMANCE DOES NOT GUARANTEE FUTURE RESULTS. THE PERFORMANCE DATA QUOTED REPRESENTS PAST PERFORMANCE AND CURRENT RETURNS MAY BE LOWER OR HIGHER. TOTAL RETURN FIGURES INCLUDE CHANGE IN SHARE PRICE, REINVESTMENT OF DIVIDENDS AND CAPITAL GAINS AND DO NOT REFLECT TAXES THAT A SHAREHOLDER WOULD PAY ON FUND DISTRIBUTIONS OR ON THE REDEMPTION OF FUND SHARES. THE INVESTMENT RETURN AND PRINCIPAL VALUE WILL FLUCTUATE SO THAT AN INVESTOR'S SHARES, WHEN REDEEMED MAY BE WORTH MORE OR LESS THAN THE ORIGINAL COST. FOR PERFORMANCE DATA CURRENT TO THE MOST RECENT MONTH END, VISIT OUR WEBSITE AT WWW.STICLASSICFUNDS.COM. * CLASS A SHARE PERFORMANCE REFLECTS THE MAXIMUM FRONT-END SALES CHARGE OF 4.75% AND CLASS C SHARES REFLECT THE MAXIMUM CDSC (CONTINGENT DEFERRED SALES CHARGE) OF 1.00% IN YEAR ONE ONLY. EFFECTIVE AUGUST 1, 2005, L SHARES WERE RENAMED C SHARES AND T SHARES WERE RENAMED I SHARES. 34 TOTAL RETURN BOND FUND (formerly Classic Institutional Total Return Bond Fund) PORTFOLIO MANAGER(S) - - John Talty, CFA - - Perry Troisi INVESTMENT CONCERNS Bonds offer a relatively stable level of income, although bond prices will fluctuate providing the potential for principal gain or loss. Intermediate-term, higher-quality bonds generally offer less risk than longer-term bonds and a lower rate of return. MANAGEMENT DISCUSSION & ANALYSIS HOW DID THE FUND PERFORM AGAINST ITS BENCHMARK FOR THE PERIOD ENDED MARCH 31, 2006? For the 12 month period ended March 31, 2006, the Total Return Bond Fund lagged its benchmark, the Lehman Brothers Aggregate Bond Index with a return of 1.31% (I Shares) versus 2.26% for the index. WHAT FACTORS INFLUENCED THE FUND'S PERFORMANCE FOR THE PERIOD ENDED MARCH 31, 2006? The Fund has maintained its defensive strategy over the past fiscal year, while credit spreads have been extremely narrow and driven by strong demand and limited supply. Despite this cautious posture and bias towards Treasuries, we are making active decisions regarding security selection and sector allocations. We are significantly underweight the corporate and mortgage sectors and as always are neutral duration to the index. The resulting performance for the Fund modestly trailed the index's results.(1) The economy rebounded from the weak, hurricane impacted, final quarter of 2005. First quarter Gross Domestic Product(1) is predicted to exceed 4%. Employment and manufacturing sectors are healthy and housing has only slowed slightly. The Federal Reserve Board (the "Fed") raised the fed funds target twice in the quarter to 4.75%. Interest rates rose approximately 50 basis points (0.50%) in the quarter and returns of bond indexes were slightly negative, similar to last year's third quarter.(2) HOW DO YOU PLAN TO POSITION THE FUND, BASED ON MARKET CONDITIONS? Because credit spreads are extremely narrow, driven by strong demand and limited supply, we maintained our defensive strategy in the quarter. Despite this cautious posture and bias towards Treasuries, we are making active decisions regarding security selection and sector allocations. We are significantly underweight the corporate and mortgage sectors and continue to opportunistically own Treasury Inflation Protected Securities. We believe that current valuations are not sustainable and do not justify the greater risk of overweighting corporates and mortgages. We think the more likely outcome will be wider yield spreads and better buying opportunities as we move into the latter stages of the current economic expansion. (1) The Gross Domestic Product ("GDP") is the monetary value of all the finished goods and services produced within a country's borders in a specific time period, though GDP is usually calculated on an annual basis. It includes all of private and public consumption, government outlays, investments and exports less imports that occur within a defined territory. PORTFOLIO COMPOSITION (as of March 31, 2006)(2) as a percentage of total investments (PIE CHART) Collateralized Mortgage Obligations 2.2% Corporate Bonds 10.5% Foreign Government Bonds 2.7% U.S. Government Agency Mortgages 29.0% U.S. Treasury Obligations 46.9% Repurchase Agreements 6.2% Asset Backed Securities 2.5%
(2) PORTFOLIO COMPOSITION IS SUBJECT TO CHANGE 35 TOTAL RETURN BOND FUND GROWTH OF $10,000 INVESTMENT (as of March 31, 2006) (PERFORMANCE GRAPH)
Total Return Bond Fund Lehman Brothers U.S. Aggregate (I Shares) Bond Index ---------------------- ------------------------------ 10/15/2003 10000 10000 12/03 10128 10126 10379 10395 10064 10141 10389 10465 12/04 10562 10565 10489 10515 10739 10831 10663 10758 12/05 10717 10822 3/06 10627 10752
This chart assumes an initial hypothetical investment of $10,000 made on 10/15/03. Total return is based on net change in N.A.V. (net asset value) assuming reinvestment of distributions. Returns shown on this page include reinvestment of all dividends and other distributions. The Funds performance is compared to the Lehman Brothers U.S. Aggregate Bond Index a widely-recognized index of U.S. Treasury and agency securities, corporate bond issues, mortgage-backed securities, asset-backed securities and corporate mortgage-backed securities. The index is unmanaged and does not reflect the deduction of fees or taxes associated with a mutual fund, such as investment management and fund accounting fees. Investors cannot invest directly in an index, although they can invest in its underlying securities.
AVERAGE ANNUAL TOTAL RETURNS AS OF 3/31/06 (%) ---------------------------- SINCE TOTAL RETURN BOND FUND INCEPTION DATE 1 YEAR INCEPTION - ---------------------- -------------- ------ --------- I SHARES 10/15/03 1.31 2.50 LEHMAN BROTHERS U.S. AGGREGATE BOND INDEX 2.26 --
PAST PERFORMANCE DOES NOT GUARANTEE FUTURE RESULTS. THE PERFORMANCE DATA QUOTED REPRESENTS PAST PERFORMANCE AND CURRENT RETURNS MAY BE LOWER OR HIGHER. TOTAL RETURN FIGURES INCLUDE CHANGE IN SHARE PRICE, REINVESTMENT OF DIVIDENDS AND CAPITAL GAINS AND DO NOT REFLECT TAXES THAT A SHAREHOLDER WOULD PAY ON FUND DISTRIBUTIONS OR ON THE REDEMPTION OF FUND SHARES. THE INVESTMENT RETURN AND PRINCIPAL VALUE WILL FLUCTUATE SO THAT AN INVESTOR'S SHARES, WHEN REDEEMED MAY BE WORTH MORE OR LESS THAN THE ORIGINAL COST. FOR PERFORMANCE DATA CURRENT TO THE MOST RECENT MONTH END, VISIT OUR WEBSITE AT WWW.STICLASSICFUNDS. COM. Effective August 1, 2005, Institutional Shares were renamed I Shares, T Shares were merged into I Shares and T Shares were no longer offered. 36 U.S. GOVERNMENT SECURITIES FUND PORTFOLIO MANAGER(S) - - Joseph Calabrese, CFA - - John Talty, CFA INVESTMENT CONCERNS Mutual fund investing involves risk, including possible loss of principal. Bonds offer a relatively stable level of income, although bond prices will fluctuate providing the potential for principal gain or loss. Intermediate-term, higher-quality bonds generally offer less risk than longer-term bonds and a lower rate of return. U.S. Government guarantees apply only to the underlying securities of the Fund's portfolio and not the Fund's Shares. The Fund is subject to the risk that principal value reacts in opposition to the movement of interests rates and that a rising interest rate environment increases the risk of loss of principal. MANAGEMENT DISCUSSION & ANALYSIS HOW DID THE FUND PERFORM AGAINST ITS BENCHMARK FOR THE PERIOD ENDED MARCH 31, 2006? For the 12 month period ended March 31, 2006, the U.S. Government Securities Fund lagged its benchmarks, the Merrill Lynch Government/Mortgage Custom Index and the Lehman Brothers Intermediate U.S. Government Bond Index with a return of 1.66% (I Shares) versus 2.46% and 2.07%, respectively. WHAT FACTORS INFLUENCED THE FUND'S PERFORMANCE FOR THE PERIOD ENDED MARCH 31, 2006? Mortgage Backed Securities have been the best performers this year. A rally was spurred by a surprising interest from investors who have replaced the absent Federal housing agencies. Another inversion between two and ten year securities can cause mortgages to cheapen. The tone of the market is subdued because market volatility remains close to all time lows. This breeds an environment which fosters more complacent risk taking--something we are not willing to accept without proportional returns, and which caused the Fund's underperformance.(1) Higher interest rates were a benefit to performance as prepayments slow and mortgages gain favor. The portfolio's shorter duration relative to the index during this period also provided a benefit. The added value of ARMs and the stability of recently dated current coupon mortgages were also helpful. The underweight in bonds relative to the Government component of the blended index also generated a positive contribution.(1) We are making active decisions regarding security selection and sector allocations. We are significantly underweight in the Agency sector, opportunistically own TIPS and are somewhat overweight mortgages relative to the index. We have doubled our position in ARMs with complementary prepayment scenarios to our fixed rate composition while also providing a hedge against higher rates. We have reduced our holdings in generic Treasuries while holding similar weightings in Treasury Inflation Protected Securities, Agencies and Cash.(1) HOW DO YOU PLAN TO POSITION THE FUND, BASED ON MARKET CONDITIONS? Since the early part of last year, we have focused on reducing risk at a time when market volatility remains close to all time lows. This absence of volatility breeds an environment which fosters more complacent risk taking--something we are not willing to accept without proportional returns. A greater degree of instability could arise and provide the opportunity to boost relative returns. We feel strongly that our strategies should continue to pay off if this disregard for risk comes to an end. Another inversion between two and ten year Treasuries can cause mortgages to cheapen. An overaggressive inflation fighting Fed would provide additional opportunities. Our general view is that spread markets must get cheaper. This would certainly provide the impetus for value to surface. Until then, we will monitor risk and reward closely.(1) PORTFOLIO COMPOSITION (as of March 31, 2006)(1) as a percentage of total investments (PIE CHART) U.S. Government Agencies 1.4% Short-Term Investments 28.1% U.S. Treasury Obligations 31.9% U.S. Government Agency Mortgages 35.5% Repurchase Agreements 3.1%
(1) PORTFOLIO COMPOSITION IS SUBJECT TO CHANGE 37 U.S. GOVERNMENT SECURITIES FUND GROWTH OF $10,000 INVESTMENT (as of March 31, 2006) (PERFORMANCE GRAPH)
U.S. Government Securities Merrill Lynch Lehman Brothers Intermediate Fund (I Shares) Government/Mortgage Custom Index U.S. Government Bond Index -------------------------- -------------------------------- ---------------------------- 3/96 10000 10000 10000 10017 10053 10067 10192 10243 10240 12/96 10493 10546 10477 10374 10509 10475 10771 10887 10767 11131 11228 11042 12/97 11431 11545 11286 11619 11733 11457 11877 11987 11669 12344 12477 12214 12/98 12364 12528 12244 12311 12496 12210 12182 12408 12186 12278 12513 12309 12/99 12244 12495 12304 12493 12791 12505 12712 13035 12732 13083 13421 13074 12/00 13588 14019 13592 13927 14380 14000 13914 14426 14059 14585 15135 14757 12/01 14529 15093 14736 14533 15128 14697 15110 15726 15265 15735 16470 16001 12/02 15935 16657 16157 16053 16827 16306 16287 17101 16582 16104 17089 16560 12/03 16141 17130 16526 16466 17539 16891 16119 17179 16502 16531 17676 16875 12/04 16693 17830 16912 16657 17781 16797 17039 18294 17185 16952 18190 17095 12/05 17030 18301 17197 3/06 16934 18217 17145
This chart assumes an initial hypothetical investment of $10,000 made on 3/31/96. Total return is based on net change in N.A.V. (net asset value) assuming reinvestment of distributions. Returns shown on this page include reinvestment of all dividends and other distributions. The Funds performance is compared to the Merrill Lynch Government/Mortgage Custom Index and the Lehman Brothers Intermediate U.S. Government Bond Index. The Merrill Lynch Government/Mortgage Custom Index is a synthetic index created by combining the Merrill Lynch Government Master Index, which is a comprised of U.S. Treasury securities and U.S. government agency securities with a maturity of at least one year; and the Merrill Lynch Mortgage Master Index, which is comprised of mortgage-backed securities including 15 and 30 year single family mortgages in addition to aggregated pooled mortgages. The Lehman Brothers Intermediate U.S. Government bond index is a market value-weighted index of U.S. Treasury securities, U.S. government agency obligations, and corporate debt backed by the U.S. Government, fixed-rate nonconvertible corporate debt securities, Yankee bonds, and nonconvertible debt securities issued by or guaranteed by foreign governments and agencies. All securities in the Index are rated investment grade (BBB) or higher, with maturities of at least one year. The indices are unmanaged and do not reflect the deduction of fees or taxes associated with a mutual fund, such as investment management and fund accounting fees. Investors cannot invest directly in an index, although they can invest in its underlying securities.
AVERAGE ANNUAL TOTAL RETURNS AS OF 3/31/06 (%) INCEPTION ---------------------------------- U.S. GOVERNMENT SECURITIES FUND DATE 1 YEAR 3 YEAR 5 YEAR 10 YEAR - ------------------------------- --------- ------ ------ ------ ------- A SHARES WITHOUT SALES CHARGE 06/06/94 1.43 1.42 3.61 4.99 WITH SALES CHARGE* -3.39 -0.21 2.61 4.49 C SHARES WITHOUT CDSC 06/07/95 0.76 0.84 3.03 4.45 WITH CDSC* -0.21 0.84 3.03 4.45 I SHARES 08/01/94 1.66 1.80 3.99 5.41 MERRILL LYNCH GOVERNMENT/ MORTGAGE CUSTOM INDEX 2.46 2.68 4.84 6.18 LEHMAN BROTHERS INTERMEDIATE U.S. GOVERNMENT BOND INDEX 2.07 1.69 4.14 5.54
PAST PERFORMANCE DOES NOT GUARANTEE FUTURE RESULTS. THE PERFORMANCE DATA QUOTED REPRESENTS PAST PERFORMANCE AND CURRENT RETURNS MAY BE LOWER OR HIGHER. TOTAL RETURN FIGURES INCLUDE CHANGE IN SHARE PRICE, REINVESTMENT OF DIVIDENDS AND CAPITAL GAINS AND DO NOT REFLECT TAXES THAT A SHAREHOLDER WOULD PAY ON FUND DISTRIBUTIONS OR ON THE REDEMPTION OF FUND SHARES. THE INVESTMENT RETURN AND PRINCIPAL VALUE WILL FLUCTUATE SO THAT AN INVESTOR'S SHARES, WHEN REDEEMED MAY BE WORTH MORE OR LESS THAN THE ORIGINAL COST. FOR PERFORMANCE DATA CURRENT TO THE MOST RECENT MONTH END, VISIT OUR WEBSITE AT WWW.STICLASSICFUNDS.COM. * CLASS A SHARE PERFORMANCE REFLECTS THE MAXIMUM FRONT-END SALES CHARGE OF 4.75% AND CLASS C SHARES REFLECT THE MAXIMUM CDSC (CONTINGENT DEFERRED SALES CHARGE) OF 1.00% IN YEAR ONE ONLY. EFFECTIVE AUGUST 1, 2005, L SHARES WERE RENAMED C SHARES AND T SHARES WERE RENAMED I SHARES. 38 U.S. GOVERNMENT SECURITIES ULTRA-SHORT BOND FUND (formerly Classic Institutional U.S. Government Securities Super Short Income Plus Fund) PORTFOLIO MANAGER(S) - - Robert W. Corner - - H. Rick Nelson INVESTMENT CONCERNS Bonds offer a relatively stable level of income, although bond prices will fluctuate providing the potential for principal gain or loss. Intermediate-term, higher-quality bonds generally offer less risk than longer-term bonds and a lower rate of return. U.S. Government guarantees apply only to the underlying securities of the Fund's portfolio and not the Fund's shares The Fund is subject to the risk that principal value reacts in opposition to the movement of interests rates and that a rising interest rate environment increases the risk of loss of principal. MANAGEMENT DISCUSSION & ANALYSIS HOW DID THE FUND PERFORM AGAINST ITS BENCHMARK FOR THE PERIOD ENDED MARCH 31, 2006? For the 12 month period ended March 31, 2006, the U.S. Government Securities Ultra-Short Bond Fund returned 3.12% (I Shares) versus 3.51% for its benchmark the Citigroup 6 Month U.S. Treasury Bill Index. The most prominent factor influencing the underperformance of the Fund over the past year was that of a flattening yield curve due to a tighter, or more restrictive, Federal Reserve monetary policy. Short-term yields rose more than long-term yields as the Federal Reserve (the "Fed") tightened monetary policy by 25 basis points (0.25%) at each of their eight meetings. The federal funds rate ended the year at 4.75%, up from 2.75% at the beginning of the year while the two year U.S. Treasury note rose 103 basis points (1.03%) to 4.82% from 3.78%. In contrast, the ten year U.S. Treasury note rose only 37 basis points (0.37%) to end the year at 4.85%, up from 4.48%. WHAT FACTORS INFLUENCED THE FUND'S PERFORMANCE FOR THE PERIOD ENDED MARCH 31, 2006? The Fund maintained a conservative duration of about 0.6 years during the beginning of the year and slowly added to duration as rates rose. Duration at the end of the year had been pushed out to 0.7 years. The Fund would probably have performed even better relative to its peer group if we had maintained a shorter duration. However, not extending duration to the Fund's maximum permitted duration of one year kept returns very competitive and slightly above the Lipper category average.(1) A significant position in floating rate securities or securities that have adjustable rates helped temper the interest rate sensitivity of the Fund while helping increase the yield of the Fund as rates rose. For example we maintained a consistent allocation between 10% and 15% to student loan auction and floating rate securities. In addition, we maintained positions in U.S. Agency adjustable rate mortgage backed securities as well as floating rate U.S. Agency debt securities.(1) In general, U.S. Agency mortgage backed securities and U.S. Agency debt securities performed well compared to other fixed income sectors due to declining volatility and relatively stable spreads. For example, U.S. Agency notes maturing between 1 and 3 years returned 2.66% for the year while AAA/AA rated corporate securities returned a slightly higher 2.72% (Source: Merrill Lynch.)(1) During the year, we reduced our allocation to U.S. Agency debt securities to 42% from 35%. However, we increased our allocation to callable U.S. Agency securities to 2% from 10%. Our mortgage backed allocation increased to 31% from 44%.(1) HOW DO YOU PLAN TO POSITION THE FUND, BASED ON MARKET CONDITIONS? Looking forward, the extent of further Fed tightening is more data dependent as policy expectations are pushing the upper bounds of neutral. With (the fed funds) rate having risen by nearly 400 basis points (4.00%) over the past two years, the Fed is expected to slow their pace of tightening in order to better evaluate the economic landscape of higher rates and a flatter yield curve. Second, yield spreads and volatility measures are at the lower ends of recent history. If both spreads and volatility measures stay low, callable U.S. Agency securities and U.S. Agency mortgage backed securities should continue to perform well relative to other asset classes. We expect to maintain this focus for the near future as there seems to be little reward in assuming additional corporate credit risk at current tight spreads. One needs to consider the many possibilities when evaluating future expectations. One of those potential outcomes that has not been on the radar over the last few years is a Fed pause and eventual easing. While Fed easing does not seem be in the cards in the near-term, our plan for Fed easing will be to reduce our exposure to floating rate securities, callable structure, and MBS in favor of bullet structures in order to lock in yields for a longer period of time. PORTFOLIO COMPOSITION (as of March 31, 2006)(1) as a percentage of total investments (PIE CHART) Asset Backed Securities 9.8% Master Notes 1.9% Municipal Bonds 0.9% U.S. Government Agencies 40.1% U.S. Government Agency Mortgages 43.8% Short-Term Investments 1.5% Money Market Funds 2.0%
(1) PORTFOLIO COMPOSITION IS SUBJECT TO CHANGE 39 U.S. GOVERNMENT SECURITIES ULTRA-SHORT BOND FUND GROWTH OF $10,000 INVESTMENT (as of March 31, 2006) (PERFORMANCE GRAPH)
U.S. Government Securities Ultra-Short Bond Citigroup 6 Month U.S. Fund (I Shares) Treasury Bill Index ---------------- ---------------------- 4/11/2002 10000 10000 10103 10047 10211 10094 12/02 10279 10136 10332 10171 10327 10201 10365 10229 12/03 10353 10255 10444 10281 10431 10308 10477 10343 12/04 10541 10389 10559 10448 10652 10521 10721 10606 12/05 10800 10704 3/06 10889 10814
This chart assumes an initial hypothetical investment of $10,000 made on 4/11/02. Total return is based on net change in N.A.V. (net asset value) assuming reinvestment of distributions. Returns shown on this page include reinvestment of all dividends and other distributions. The Funds performance is compared to the Citigroup 6 Month U.S. Treasury Bill Index which is a widely-recognized index which tracks the performance of the 6 Month U.S. Treasury Bills. The index is unmanaged and does not reflect the deduction of fees or taxes associated with a mutual fund, such as investment management and fund accounting fees. Investors cannot invest directly in an index, although they can invest in its underlying securities.
AVERAGE ANNUAL TOTAL RETURNS AS OF 3/31/06 (%) --------------------------- U.S. GOVERNMENT SECURITIES INCEPTION SINCE ULTRA-SHORT BOND FUND DATE 1 YEAR 3 YEAR INCEPTION - -------------------------- --------- ------ ------ --------- I SHARES 04/11/02 3.12 1.76 2.17 CITIGROUP 6 MONTH U.S. TREASURY BILL INDEX 3.51 2.07
PAST PERFORMANCE DOES NOT GUARANTEE FUTURE RESULTS. THE PERFORMANCE DATA QUOTED REPRESENTS PAST PERFORMANCE AND CURRENT RETURNS MAY BE LOWER OR HIGHER. TOTAL RETURN FIGURES INCLUDE CHANGE IN SHARE PRICE, REINVESTMENT OF DIVIDENDS AND CAPITAL GAINS AND DO NOT REFLECT TAXES THAT A SHAREHOLDER WOULD PAY ON FUND DISTRIBUTIONS OR ON THE REDEMPTION OF FUND SHARES. THE INVESTMENT RETURN AND PRINCIPAL VALUE WILL FLUCTUATE SO THAT AN INVESTOR'S SHARES, WHEN REDEEMED MAY BE WORTH MORE OR LESS THAN THE ORIGINAL COST. FOR PERFORMANCE DATA CURRENT TO THE MOST RECENT MONTH END, VISIT OUR WEBSITE AT WWW.STICLASSICFUNDS.COM. Effective August 1, 2005, Institutional Shares were renamed I Shares, T Shares were merged into I Shares and T Shares were no longer offered. 40 ULTRA-SHORT BOND FUND (formerly Classic Institutional Super Short Income Plus Fund) PORTFOLIO MANAGER(S) - - Robert W. Corner - - H. Rick Nelson INVESTMENT CONCERNS Bonds offer a relatively stable level of income, although bond prices will fluctuate providing the potential for principal gain or loss. Intermediate-term, higher-quality bonds generally offer less risk than longer-term bonds and a lower rate of return. U.S. Government guarantees apply only to the underlying securities of the Fund's portfolio and not the Fund's shares. MANAGEMENT DISCUSSION & ANALYSIS HOW DID THE FUND PERFORM AGAINST ITS BENCHMARK FOR THE PERIOD ENDED MARCH 31, 2006? For the 12 month period ended March 31, 2006, the Ultra-Short Bond Fund returned 3.23% (I Shares) versus 3.51% for its benchmark index the Citigroup 6 Month U.S. Treasury Bill Index. The most prominent factor influencing underperformance over the past year was that of a flattening yield curve due to Federal Reserve tightening. Short-term yields rose more than long-term yields as the Fed tightened monetary policy by 25 basis points (0.25%) at each of their eight meetings. The federal funds rate ended the year at 4.75%, up from 2.75% at the beginning of the year while the two year U.S. Treasury note rose 103 basis points (1.03%) to 4.82% from 3.78%. In contrast, the ten year U.S. Treasury note rose only 37 basis points (0.37%) to end the year at 4.85%, up from 4.48%. WHAT FACTORS INFLUENCED THE FUND'S PERFORMANCE FOR THE PERIOD ENDED MARCH 31, 2006? The Fund maintained a conservative duration of about 0.6 years during the beginning of the year and slowly added to duration as rates rose. Duration at the end of the year had been pushed out to 0.7 years. The Fund would probably have performed even better relative to its peer group if we had maintained a shorter duration. However, not extending duration to the Fund's maximum permitted duration of 1 year kept returns very competitive and slightly above the Lipper category average. A significant position in floating rate securities or securities that have adjustable rates helped temper the interest rate sensitivity of the Fund while helping increase the yield of the Fund as rates rose. For example we maintained a consistent allocation between floating rate corporate notes, asset backed securities and student loan auction securities. In addition, we maintained positions in U.S. Agency adjustable rate mortgage backed securities.(1) In general, U.S. Agency mortgage backed securities and U.S. Agency debt securities performed well compared to other fixed income sectors due to declining volatility and relatively stable spreads. For example, US Agency notes maturing between 1 and 3 years returned 2.66% for the year while AAA/AA rated corporate securities returned a slightly higher 2.72% (Source: Merrill Lynch.)(1) During the year, we reduced our allocation to U.S. Agency debt securities, corporate debt securities, and cash & equivalents in favor of mortgage backed securities. However, we increased our allocation to callable U.S. Agency securities to 2% from 8%. Our mortgage backed allocation increased to 18% from 24%.(1) HOW DO YOU PLAN TO POSITION THE FUND, BASED ON MARKET CONDITIONS? Looking forward, the extent of further Fed tightening is more data dependent as policy expectations are pushing the upper bounds of neutral. With (the fed funds) rate having risen by nearly 400 basis points (4.00%) over the past two years, the Fed is expected to slow their pace of tightening in order to better evaluate the economic landscape of higher rates and a flatter yield curve.(1) Second, yield spreads and volatility measures are at the lower ends of recent history. If both spreads and volatility measures stay low, callable U.S. Agency securities and mortgage backed securities should continue to perform well relative to other asset classes. We expect to maintain this focus for the near future as there seems to be little reward in assuming additional corporate credit risk at current tight spreads.(1) One needs to consider the many possibilities when evaluating future expectations. One of those potential outcomes that has not been on the radar over the last few years is a Fed pause and eventual easing. While Fed easing does not seem be in the cards in the near-term, our plan for Fed easing will be to reduce our exposure to floating rate securities, callable structure, and MBS in favor of bullet structures in order to lock in yields for a longer period of time.(1) PORTFOLIO COMPOSITION (as of March 31, 2006)(1) as a percentage of total investments (PIE CHART) Money Market Funds 1.7% Asset Backed Securities 22.6% Collateralized Mortgage Obligations 5.7% Commercial Papers 5.6% Corporate Bonds 26.7% Master Notes 1.1% Municipal Bonds 1.0% U.S. Government Agencies 10.4% U.S. Government Agency Mortgages 16.4% U.S. Treasury Obligations 3.3% Short-Term Investments 5.5%
(1) PORTFOLIO COMPOSITION IS SUBJECT TO CHANGE 41 ULTRA-SHORT BOND FUND GROWTH OF $10,000 INVESTMENT (as of March 31, 2006) (PERFORMANCE GRAPH)
Ultra-Short Bond Fund (I Shares) Citigroup 6 Month U.S. Treasury Bill Index -------------------------------- ------------------------------------------ 4/15/2002 10000 10000 10100 10047 10209 10094 12/02 10268 10136 10316 10171 10360 10201 10399 10229 12/03 10387 10255 10477 10281 10412 10308 10508 10343 12/04 10513 10389 10579 10448 10666 10521 10735 10606 12/05 10829 10704 3/06 10920 10814
This chart assumes an initial hypothetical investment of $10,000 made on 4/15/02. Total return is based on net change in N.A.V. (net asset value) assuming reinvestment of distributions. Returns shown on this page include reinvestment of all dividends and other distributions. The Funds performance is compared to the Citigroup 6 Month U.S. Treasury Bill Index which is a widely-recognized index which tracks the performance of 6 Month U.S. Treasury Bills. The index is unmanaged and does not reflect the deduction of fees or taxes associated with a mutual fund, such as investment management and fund accounting fees. Investors cannot invest directly in an index, although they can invest in its underlying securities.
AVERAGE ANNUAL TOTAL RETURNS AS OF 3/31/06 (%) ---------------------------------------------- ULTRA-SHORT BOND FUND INCEPTION DATE 1 YEAR 3 YEAR SINCE INCEPTION - --------------------- -------------- ------ ------ --------------- I SHARES 04/15/02 3.23 1.91 2.25 CITIGROUP 6 MONTH U.S. TREASURY BILL INDEX 3.51 2.07 --
PAST PERFORMANCE DOES NOT GUARANTEE FUTURE RESULTS. THE PERFORMANCE DATA QUOTED REPRESENTS PAST PERFORMANCE AND CURRENT RETURNS MAY BE LOWER OR HIGHER. TOTAL RETURN FIGURES INCLUDE CHANGE IN SHARE PRICE, REINVESTMENT OF DIVIDENDS AND CAPITAL GAINS AND DO NOT REFLECT TAXES THAT A SHAREHOLDER WOULD PAY ON FUND DISTRIBUTIONS OR ON THE REDEMPTION OF FUND SHARES. THE INVESTMENT RETURN AND PRINCIPAL VALUE WILL FLUCTUATE SO THAT AN INVESTOR'S SHARES, WHEN REDEEMED MAY BE WORTH MORE OR LESS THAN THE ORIGINAL COST. FOR PERFORMANCE DATA CURRENT TO THE MOST RECENT MONTH END, VISIT OUR WEBSITE AT WWW.STICLASSICFUNDS.COM. Effective August 1, 2005, Institutional Shares were renamed I Shares, T Shares were merged into I Shares and T Shares were no longer offered. 42 VIRGINIA INTERMEDIATE MUNICIPAL BOND FUND PORTFOLIO MANAGER - - George E. Calvert, Jr. INVESTMENT CONCERNS The geographical concentration of portfolio holdings in this fund may involve increased risk. Mutual fund investing involves risk, including possible loss of principal. Bonds offer a relatively stable level of income, although bond prices will fluctuate providing the potential for principal gain or loss. Intermediate-term, higher-quality bonds generally offer less risk than longer-term bonds and a lower rate of return. The Fund's income may be subject to certain state and local taxes and, depending on your tax status, the federal alternative minimum tax. The Fund is subject to the risk that principal value reacts in opposition to the movement of interests rates and that a rising interest rate environment increases the risk of loss of principal. MANAGEMENT DISCUSSION & ANALYSIS HOW DID THE FUND PERFORM AGAINST ITS BENCHMARK FOR THE PERIOD ENDED MARCH 31, 2006? For the 12 month period ended March 31, 2006, the Virginia Intermediate Municipal Bond Fund outperformed the Lehman 5 Year Municipal Bond Index, returning 3.05% (I Shares) versus 2.14% for the index. The primary factor for the outperformance was the Fund's exposure to 15 to 20 year bonds where returns exceeded the returns of shorter bonds, despite the rising rate environment most of the year. We offset these longer holdings with cushion bonds and other short duration bonds.(1) WHAT FACTORS INFLUENCED THE FUND'S PERFORMANCE FOR THE PERIOD ENDED MARCH 31, 2006? The flattening yield curve that came with rising rates hurt the valuation of bonds due within 10 years the most. This Fund was underweight in this area. The Fund was overweight some lower quality sectors, including the Tobacco settlement bonds issued by Virginia, and the intense demand for higher yielding securities that has been a worldwide fixed income issue allowed these bonds to hold value better than high grade bonds in the rising rate environment.(1) HOW DO YOU PLAN TO POSITION THE FUND, BASED ON MARKET CONDITIONS? The Fund will be positioned for 2006-2007 with slightly shorter duration and maturity characteristics as we expect rates to rise further. We will reduce the Fund's exposure to bonds due past 15 years and make the tactical trades within the 5 to 10 year area to prepare for the yield curve to eventually return to a steeper slope.(1) PORTFOLIO COMPOSITION (as of March 31, 2006)(1) as a percentage of total investments (PIE CHART) Municipal Bonds 99.6% Money Market Funds 0.4%
(1) PORTFOLIO COMPOSITION IS SUBJECT TO CHANGE 43 VIRGINIA INTERMEDIATE MUNICIPAL BOND FUND GROWTH OF $10,000 INVESTMENT (as of March 31, 2006) (PERFORMANCE GRAPH)
Virginia Intermediate Lehman Brothers 5 Year Municipal Bond Fund (I Shares) Municipal Bond Index ------------------------------ ---------------------- 3/96 10000 10000 10025 10053 10178 10219 12/96 10387 10422 10370 10419 10647 10674 10904 10902 12/97 11139 11086 11239 11215 11363 11340 11653 11638 12/98 11720 11734 11793 11856 11561 11709 11512 11819 12/99 11446 11820 11680 11961 11810 12150 12083 12389 12/00 12521 12732 12774 13093 12843 13222 13139 13585 12/01 13076 13522 13162 13600 13599 14161 14104 14652 12/02 14106 14776 14236 14941 14532 15212 14542 15366 12/03 14645 15386 14818 15583 14509 15248 14928 15680 12/04 15035 15805 14934 15623 15354 15922 15287 15907 12/05 15383 15955 3/06 15390 15958
This chart assumes an initial hypothetical investment of $10,000 made on 3/31/96. Total return is based on net change in N.A.V. (net asset value) assuming reinvestment of distributions. Returns shown on this page include reinvestment of all dividends and other distributions. The Funds performance is compared to the Lehman Brothers 5 Year Municipal Bond Index a widely recognized index of intermediate investment grade tax-exempt bonds. The index includes general obligation bonds, revenue bonds, insured bonds and prefunded bonds with maturities between 4 and 6 years. The index is unmanaged and does not reflect the deduction of fees or taxes associated with a mutual fund, such as investment management and fund accounting fees. Investors cannot invest directly in an index, although they can invest in its underlying securities.
AVERAGE ANNUAL TOTAL RETURNS AS OF 3/31/06 (%) ---------------------------------------------- VIRGINIA INTERMEDIATE MUNICIPAL BOND FUND INCEPTION DATE 1 YEAR 3 YEAR 5 YEAR 10 YEAR - --------------------- -------------- ------ ------ ------ ------- A SHARES WITHOUT SALES CHARGE 05/05/93 2.92 2.51 3.73 4.38 WITH SALES CHARGE* -1.93 0.87 2.72 3.87 C SHARES WITHOUT CDSC 09/01/05 2.56 2.47 3.70 4.36 WITH CDSC* 1.57 2.47 3.70 4.36 I SHARES 01/11/93 3.05 2.63 3.80 4.41 LEHMAN BROTHERS 5 YEAR MUNICIPAL BOND INDEX 2.14 2.22 4.04 4.78
PAST PERFORMANCE DOES NOT GUARANTEE FUTURE RESULTS. THE PERFORMANCE DATA QUOTED REPRESENTS PAST PERFORMANCE AND CURRENT RETURNS MAY BE LOWER OR HIGHER. TOTAL RETURN FIGURES INCLUDE CHANGE IN SHARE PRICE, REINVESTMENT OF DIVIDENDS AND CAPITAL GAINS AND DO NOT REFLECT TAXES THAT A SHAREHOLDER WOULD PAY ON FUND DISTRIBUTIONS OR ON THE REDEMPTION OF FUND SHARES. THE INVESTMENT RETURN AND PRINCIPAL VALUE WILL FLUCTUATE SO THAT AN INVESTOR'S SHARES, WHEN REDEEMED MAY BE WORTH MORE OR LESS THAN THE ORIGINAL COST. FOR PERFORMANCE DATA CURRENT TO THE MOST RECENT MONTH END, VISIT OUR WEBSITE AT WWW.STICLASSICFUNDS.COM. * CLASS A SHARE PERFORMANCE REFLECTS THE MAXIMUM FRONT-END SALES CHARGE OF 4.75% AND CLASS C SHARES REFLECT THE MAXIMUM CDSC (CONTINGENT DEFERRED SALES CHARGE) OF 1.00% IN YEAR ONE ONLY. EFFECTIVE AUGUST 1, 2005, T SHARES WERE RENAMED I SHARES. The C Shares were offered beginning on 9/1/05. The C Shares performance between 1/11/93 to 9/1/05 is that of the Class I Shares (formerly T Shares) of the Fund, and has not been adjusted to reflect C Share expenses. If it had been performance would have been lower. 44 VIRGINIA MUNICIPAL BOND FUND PORTFOLIO MANAGER - - George E. Calvert, Jr. INVESTMENT CONCERNS Mutual fund investing involves risk, including possible loss of principal. Bonds offer a relatively stable level of income, although bond prices will fluctuate providing the potential for principal gain or loss. Intermediate-term, higher-quality bonds generally offer less risk than longer-term bonds and a lower rate of return. The geographical concentration of portfolio holdings in this fund may involve increased risk. Certain shareholders may be subject to the Alternative Minimum Tax (AMT). Federal income tax rules will apply to any capital gains distributions. The Fund is subject to the risk that principal value reacts in opposition to the movement of interests rates and that a rising interest rate environment increases the risk of loss of principal. MANAGEMENT DISCUSSION & ANALYSIS HOW DID THE FUND PERFORM AGAINST ITS BENCHMARK FOR THE PERIOD ENDED MARCH 31, 2006? For the 12 month period ended March 31, 2006, the Fund outperformed, to a minor degree, the Lehman Brothers 10 Year Municipal Bond Index, returning 3.36% (I Shares) compared to 3.31% for the index. The Fund's duration was more defensive during this period, holding less than a market weight of long maturity bonds where returns were the best by wide margins, and greater weighting in shorter duration holdings.(1) WHAT FACTORS INFLUENCED THE FUND'S PERFORMANCE FOR THE PERIOD ENDED MARCH 31, 2006? The flattening yield curve that came with rising rates hurt the valuation of bonds due within 10 years, while long bonds produced the greatest returns due to the world wide demand for higher yields regardless of maturity. Market yields did not offer appropriate spreads for maturity or credit risk but portfolios exposed to these risks generated greater returns than this Fund.(1) HOW DO YOU PLAN TO POSITION THE FUND, BASED ON MARKET CONDITIONS? The Fund will be positioned for 2006-2007 with slightly shorter duration and maturity characteristics as we expect rates to rise further. We will reduce the Fund's exposure to bonds due past 20 years and make tactical trades in the intermediate range to prepare for the eventual return of the yield curve to a more normal steeper slope.(1) PORTFOLIO COMPOSITION (as of March 31, 2006) (1) as a percentage of total investments (PIE CHART) Municipal Bonds 98.6% Money Market Funds 1.4%
(1) PORTFOLIO COMPOSITION IS SUBJECT TO CHANGE 45 VIRGINIA MUNICIPAL BOND FUND GROWTH OF $10,000 INVESTMENT (as of March 31, 2006) (PERFORMANCE GRAPH)
Virginia Municipal Bond Lehman Brothers 10 Year Fund (I Shares) Municipal Bond Index ----------------------- ----------------------- 3/96 10000 10000 10030 10031 10206 10232 12/96 10456 10523 10382 10521 10736 10867 11060 11205 12/97 11378 11495 11494 11614 11632 11789 12018 12192 12/98 12044 12272 12112 12342 11894 12059 11678 12136 12/99 11459 12119 11777 12401 11965 12599 12260 12911 12/00 12795 13423 13042 13735 13102 13795 13437 14202 12/01 13336 14043 13439 14213 13909 14793 14570 15548 12/02 14556 15471 14715 15662 15067 16153 15065 16133 12/03 15198 16353 15371 16616 15040 16220 15555 16892 12/04 15713 17031 15657 16918 16132 17462 16074 17365 12/05 16165 17498 3/06 16184 17478
This chart assumes an initial hypothetical investment of $10,000 made on 3/31/96. Total return is based on net change in N.A.V. (net asset value) assuming reinvestment of distributions. Returns shown on this page include reinvestment of all dividends and other distributions. The Funds performance is compared to the Lehman Brothers 10 Year Municipal Bond Index a widely recognized index of long-term investment grade tax-exempt bonds. The index includes general obligation bonds, revenue bonds, insured bonds and prefunded bonds with maturities between 8 and 12 years. The index is unmanaged and does not reflect the deduction of fees or taxes associated with a mutual fund, such as investment management and fund accounting fees. Investors cannot invest directly in an index, although they can invest in its underlying securities.
AVERAGE ANNUAL TOTAL RETURNS AS OF 3/31/06 (%) INCEPTION ---------------------------------- VIRGINIA MUNICIPAL BOND FUND DATE 1 YEAR 3 YEAR 5 YEAR 10 YEAR - ---------------------------- --------- ------ ------ ------ ------- A SHARES WITHOUT SALES CHARGE 05/11/04 3.11 3.07 4.32 4.88 WITH SALES CHARGE* -1.82 1.41 3.31 4.38 C SHARES WITHOUT CDSC 04/14/95 2.23 2.18 3.39 3.96 WITH CDSC* 1.24 2.18 3.39 3.96 I SHARES 04/04/95 3.36 3.22 4.41 4.93 LEHMAN BROTHERS 10 YEAR MUNICIPAL BOND INDEX 3.31 3.72 4.94 5.74
PAST PERFORMANCE DOES NOT GUARANTEE FUTURE RESULTS. THE PERFORMANCE DATA QUOTED REPRESENTS PAST PERFORMANCE AND CURRENT RETURNS MAY BE LOWER OR HIGHER. TOTAL RETURN FIGURES INCLUDE CHANGE IN SHARE PRICE, REINVESTMENT OF DIVIDENDS AND CAPITAL GAINS AND DO NOT REFLECT TAXES THAT A SHAREHOLDER WOULD PAY ON FUND DISTRIBUTIONS OR ON THE REDEMPTION OF FUND SHARES. THE INVESTMENT RETURN AND PRINCIPAL VALUE WILL FLUCTUATE SO THAT AN INVESTOR'S SHARES, WHEN REDEEMED MAY BE WORTH MORE OR LESS THAN THE ORIGINAL COST. FOR PERFORMANCE DATA CURRENT TO THE MOST RECENT MONTH END, VISIT OUR WEBSITE AT WWW.STICLASSICFUNDS.COM. * CLASS A SHARE PERFORMANCE REFLECTS THE MAXIMUM FRONT-END SALES CHARGE OF 4.75% AND CLASS C SHARES REFLECT THE MAXIMUM CDSC (CONTINGENT DEFERRED SALES CHARGE) OF 1.00% IN YEAR ONE ONLY. EFFECTIVE AUGUST 1, 2005, L SHARES WERE RENAMED C SHARES AND T SHARES WERE RENAMED I SHARES. 46 PRIME QUALITY MONEY MARKET FUND PORTFOLIO MANAGER(S) - - E. Dean Speer, CPA, CFA - - Kimberly C. Maichle, CFA - - Greg Hallman INVESTMENT CONCERNS An investment in the Prime Quality Money Market Fund (the "Fund") is not insured or guaranteed by the FDIC or any other government agency. Although the Fund seeks to preserve the value of your investment at $1.00 per share, it is possible to lose money by investing in the Fund. MANAGEMENT DISCUSSION & ANALYSIS WHAT FACTORS INFLUENCED THE FUND'S PERFORMANCE FOR THE PERIOD ENDED MARCH 31, 2006? The Prime Quality Money Market Fund was positioned for a rising rate environment by overweighting floating rate assets and maintaining shorter fixed maturities. For the period the Federal Reserve has increased interest rates at each Federal Open Market Committee ("FOMC") meeting benefiting the Fund. HOW DO YOU PLAN TO POSITION THE FUND, BASED ON MARKET CONDITIONS? Our outlook is that the Federal Reserve should raise interest rates at the next FOMC meeting to guard against a further rise in inflation. We expect a slowing in economic growth led by housing for the second half of this year. This slowing in economic activity could alleviate inflation concerns and allow the Federal Reserve to finish raising rates. We believe the portfolio has been structured to potentially benefit from a near term rise in rates and then a flattening of the LIBOR (1) curve later in the year.(2) (1) LIBOR is an interest rate at which banks can borrow funds, in marketable size, from other banks in the London interbank market. The LIBOR is fixed on a daily basis by the British Bankers' Association. The LIBOR is derived from a filtered average of the world's most creditworthy banks' interbank deposit rates for larger loans with maturities between overnight and one full year. YIELDS AND MATURITY DISTRIBUTION (%)
YIELDS (as of March 31, 2006) A SHARES C SHARES I SHARES - ----------------------------- -------- -------- -------- 7 Day Average Yield 3.97 3.87 4.12 7 Day Effective Yield 4.05 3.94 4.20 30 Day Average Yield 3.91 3.81 4.06
PAST PERFORMANCE DOES NOT GUARANTEE FUTURE RESULTS. THE PERFORMANCE DATA QUOTED REPRESENTS PAST PERFORMANCE AND CURRENT RETURNS MAY BE LOWER OR HIGHER. TOTAL RETURN FIGURES INCLUDE CHANGE IN SHARE PRICE, REINVESTMENT OF DIVIDENDS AND CAPITAL GAINS AND DO NOT REFLECT TAXES THAT A SHAREHOLDER WOULD PAY ON FUND DISTRIBUTIONS OR ON THE REDEMPTION OF FUND SHARES. THE INVESTMENT RETURN AND PRINCIPAL VALUE WILL FLUCTUATE SO THAT AN INVESTOR'S SHARES, WHEN REDEEMED MAY BE WORTH MORE OR LESS THAN THE ORIGINAL COST. FOR PERFORMANCE DATA CURRENT TO THE MOST RECENT MONTH END, VISIT OUR WEBSITE AT WWW.STICLASSICFUNDS.COM. The yield quotation more closely reflects the current earnings of the Fund than the total return. Effective August 1, 2005, L Shares were renamed C Shares and T Shares were renamed I Shares. MATURITY DISTRIBUTION (as of March 31, 2006)(2) as a percentage of total investments (PIE CHART) 1-2 Days 13.9% 3-14 Days 42.1% 15-29 Days 14.8% 30-89 Days 14.1% 90-365 Days 15.1%
(2) PORTFOLIO COMPOSITION IS SUBJECT TO CHANGE 47 TAX-EXEMPT MONEY MARKET FUND PORTFOLIO MANAGER - - Robert Bowman, CFA INVESTMENT CONCERNS An investment in the Tax-Exempt Money Market Fund (the "Fund") is not insured or guaranteed by the FDIC or any other government agency. Although the Fund seeks to preserve the value of your investment at $1.00 per share, it is possible to lose money by investing in the Fund. MANAGEMENT DISCUSSION & ANALYSIS WHAT FACTORS INFLUENCED THE FUND'S PERFORMANCE FOR THE PERIOD ENDED MARCH 31, 2006? The Tax-Exempt Money Market Fund was positioned for a rising rate environment by overweighting floating rate assets and maintaining shorter fixed maturities. For the period the Federal Reserve has increased interest rates at each Federal Open Market Committee ("FOMC") meeting benefiting the Fund. HOW DO YOU PLAN TO POSITION THE FUND, BASED ON MARKET CONDITIONS? Our outlook is that the Federal Reserve should raise interest rates at the next FOMC meeting to guard against a further rise in inflation. We expect a slowing in economic growth led by housing for the second half of this year. This slowing in economic activity could alleviate inflation concerns and allow the Federal Reserve to finish raising rates. We believe the portfolio has been structured to potentially benefit from a near term rise in rates and then a flattening of the LIBOR (1) curve later in the year.(2) (1) LIBOR is an interest rate at which banks can borrow funds, in marketable size, from other banks in the London interbank market. The LIBOR is fixed on a daily basis by the British Bankers' Association. The LIBOR is derived from a filtered average of the world's most creditworthy banks' interbank deposit rates for larger loans with maturities between overnight and one full year. YIELDS AND MATURITY DISTRIBUTION (%)
YIELDS (as of March 31, 2006) A SHARES I SHARES - ----------------------------- -------- -------- 7 Day Average Yield 2.54 2.69 7 Day Effective Yield 2.57 2.72 30 Day Average Yield 2.47 2.62
PAST PERFORMANCE DOES NOT GUARANTEE FUTURE RESULTS. THE PERFORMANCE DATA QUOTED REPRESENTS PAST PERFORMANCE AND CURRENT RETURNS MAY BE LOWER OR HIGHER. TOTAL RETURN FIGURES INCLUDE CHANGE IN SHARE PRICE, REINVESTMENT OF DIVIDENDS AND CAPITAL GAINS AND DO NOT REFLECT TAXES THAT A SHAREHOLDER WOULD PAY ON FUND DISTRIBUTIONS OR ON THE REDEMPTION OF FUND SHARES. THE INVESTMENT RETURN AND PRINCIPAL VALUE WILL FLUCTUATE SO THAT AN INVESTOR'S SHARES, WHEN REDEEMED MAY BE WORTH MORE OR LESS THAN THE ORIGINAL COST. FOR PERFORMANCE DATA CURRENT TO THE MOST RECENT MONTH END, VISIT OUR WEBSITE AT WWW.STICLASSICFUNDS.COM. The yield quotation more closely reflects the current earnings of the Fund than the total return. Effective August 1, 2005, T Shares were renamed I Shares. MATURITY DISTRIBUTION (as of March 31, 2006)(2) as a percentage of total investments (PIE CHART) 1-2 Days 15.6% 3-14 Days 78.0% 30-89 Days 2.3% 90-365 Days 4.1%
(2) PORTFOLIO COMPOSITION IS SUBJECT TO CHANGE 48 U.S. GOVERNMENT SECURITIES MONEY MARKET FUND PORTFOLIO MANAGER - - Robert Bowman, CFA INVESTMENT CONCERNS An investment in the U.S. Government Securities Money Market Fund (the "Fund") is not insured or guaranteed by the FDIC or any other government agency. Although the Fund seeks to preserve the value of your investment at $1.00 per share, it is possible to lose money by investing in the Fund. MANAGEMENT DISCUSSION & ANALYSIS WHAT FACTORS INFLUENCED THE FUND'S PERFORMANCE FOR THE PERIOD ENDED MARCH 31, 2006? The U.S. Government Securities Money Market Fund was positioned for a rising rate environment by overweighting floating rate assets and maintaining shorter fixed maturities. For the period the Federal Reserve has increased interest rates at each Federal Open Market Committee ("FOMC") meeting benefiting the Fund. HOW DO YOU PLAN TO POSITION THE FUND, BASED ON MARKET CONDITIONS? Our outlook is that the Federal Reserve should raise interest rates at the next FOMC meeting to guard against a further rise in inflation. We expect a slowing in economic growth led by housing for the second half of this year. This slowing in economic activity could alleviate inflation concerns and allow the Federal Reserve to finish raising rates. We believe the portfolio has been structured to potentially benefit from a near term rise in rates and then a flattening of the LIBOR (1) curve later in the year.(2) (1) LIBOR is an interest rate at which banks can borrow funds, in marketable size, from other banks in the London interbank market. The LIBOR is fixed on a daily basis by the British Bankers' Association. The LIBOR is derived from a filtered average of the world's most creditworthy banks' interbank deposit rates for larger loans with maturities between overnight and one full year. YIELDS AND MATURITY DISTRIBUTION (%)
YIELDS (as of March 31, 2006) A SHARES I SHARES - ----------------------------- -------- -------- 7 Day Average Yield 3.80 3.95 7 Day Effective Yield 3.87 4.03 30 Day Average Yield 3.71 3.86
PAST PERFORMANCE DOES NOT GUARANTEE FUTURE RESULTS. THE PERFORMANCE DATA QUOTED REPRESENTS PAST PERFORMANCE AND CURRENT RETURNS MAY BE LOWER OR HIGHER. TOTAL RETURN FIGURES INCLUDE CHANGE IN SHARE PRICE, REINVESTMENT OF DIVIDENDS AND CAPITAL GAINS AND DO NOT REFLECT TAXES THAT A SHAREHOLDER WOULD PAY ON FUND DISTRIBUTIONS OR ON THE REDEMPTION OF FUND SHARES. THE INVESTMENT RETURN AND PRINCIPAL VALUE WILL FLUCTUATE SO THAT AN INVESTOR'S SHARES, WHEN REDEEMED MAY BE WORTH MORE OR LESS THAN THE ORIGINAL COST. FOR PERFORMANCE DATA CURRENT TO THE MOST RECENT MONTH END, VISIT OUR WEBSITE AT WWW.STICLASSICFUNDS.COM. The yield quotation more closely reflects the current earnings of the Fund than the total return. Effective August 1, 2005, T Shares were renamed I Shares. MATURITY DISTRIBUTION (as of March 31, 2006)(2) as a percentage of total investments (PIE CHART) 1-2 Days 50.5% 3-14 Days 17.1% 15-29 Days 3.0% 30-89 Days 10.0% 90-365 Days 19.4%
(2) PORTFOLIO COMPOSITION IS SUBJECT TO CHANGE 49 U.S. TREASURY MONEY MARKET FUND PORTFOLIO MANAGER(S) - - E. Dean Speer, CPA, CFA - - Kimberly C. Maichle, CFA - - Greg Hallman INVESTMENT CONCERNS An investment in the U.S. Treasury Money Market Fund (the "Fund") is not insured or guaranteed by the FDIC or any other government agency. Although the Fund seeks to preserve the value of your investment at $1.00 per share, it is possible to lose money by investing in the Fund. MANAGEMENT DISCUSSION & ANALYSIS WHAT FACTORS INFLUENCED THE FUND'S PERFORMANCE FOR THE PERIOD ENDED MARCH 31, 2006? The U.S. Treasury Money Market Fund was positioned for a rising rate environment by maintaining shorter fixed maturities. For the period the Federal Reserve has increased interest rates at each Federal Open Market Committee ("FOMC") meeting benefiting the Fund. HOW DO YOU PLAN TO POSITION THE FUND, BASED ON MARKET CONDITIONS? Our outlook is that the Federal Reserve should raise interest rates at the next FOMC meeting to guard against a further rise in inflation. We expect a slowing in economic growth led by housing for the second half of this year. This slowing in economic activity should alleviate inflation concerns and allow the Federal Reserve to finish raising rates. We believe the portfolio has been structured to potentially benefit from a near term rise in rates and then a flattening of the yield curve later in the year. YIELDS AND MATURITY DISTRIBUTION (%)
YIELDS (as of March 31, 2006) A SHARES I SHARES - ----------------------------- -------- -------- 7 Day Average Yield 3.84 3.99 7 Day Effective Yield 3.91 4.06 30 Day Average Yield 3.72 3.87
PAST PERFORMANCE DOES NOT GUARANTEE FUTURE RESULTS. THE PERFORMANCE DATA QUOTED REPRESENTS PAST PERFORMANCE AND CURRENT RETURNS MAY BE LOWER OR HIGHER. TOTAL RETURN FIGURES INCLUDE CHANGE IN SHARE PRICE, REINVESTMENT OF DIVIDENDS AND CAPITAL GAINS AND DO NOT REFLECT TAXES THAT A SHAREHOLDER WOULD PAY ON FUND DISTRIBUTIONS OR ON THE REDEMPTION OF FUND SHARES. THE INVESTMENT RETURN AND PRINCIPAL VALUE WILL FLUCTUATE SO THAT AN INVESTOR'S SHARES, WHEN REDEEMED MAY BE WORTH MORE OR LESS THAN THE ORIGINAL COST. FOR PERFORMANCE DATA CURRENT TO THE MOST RECENT MONTH END, VISIT OUR WEBSITE AT WWW.STICLASSICFUNDS.COM. The yield quotation more closely reflects the current earnings of the Fund than the total return. Effective August 1, 2005, T Shares were renamed I Shares. MATURITY DISTRIBUTION (as of March 31, 2006)(1) as a percentage of total investment (PIE CHART) 1-2 Days 63.9% 15-29 Days 29.8% 30-89 Days 3.7% 90-365 Days 2.6%
(1) PORTFOLIO COMPOSITION IS SUBJECT TO CHANGE 50 VIRGINIA TAX-FREE MONEY MARKET FUND PORTFOLIO MANAGER - - Robert Bowman, CFA INVESTMENT CONCERNS An investment in the Virginia Tax-Free Money Market Fund (the "Fund") is not insured or guaranteed by the FDIC or any other government agency. Although the Fund seeks to preserve the value of your investment at $1.00 per share, it is possible to lose money by investing in the Fund. MANAGEMENT DISCUSSION & ANALYSIS WHAT FACTORS INFLUENCED THE FUND'S PERFORMANCE FOR THE PERIOD ENDED MARCH 31, 2006? The Virginia Tax-Free Fund was positioned for a rising rate environment by overweighting floating rate assets and maintaining shorter fixed maturities. For the period the Federal Reserve has increased interest rates at each FOMC meeting benefiting the performance of the fund. HOW DO YOU PLAN TO POSITION THE FUND, BASED ON MARKET CONDITIONS? Our outlook is that the Federal Reserve should raise interest rates at the next FOMC meeting to guard against a further rise in inflation. We expect a slowing in economic growth led by housing for the second half of this year. This slowing in economic activity could alleviate inflation concerns and allow the Federal Reserve to finish raising rates. We believe the portfolio has been structured to potentially benefit from a near term rise in rates and then a flattening of the LIBOR (1) curve later in the year.(2) (1) LIBOR is an interest rate at which banks can borrow funds, in marketable size, from other banks in the London interbank market. The LIBOR is fixed on a daily basis by the British Bankers' Association. The LIBOR is derived from a filtered average of the world's most creditworthy banks' interbank deposit rates for larger loans with maturities between overnight and one full year. YIELDS AND MATURITY DISTRIBUTION (%)
YIELDS (as of March 31, 2006) A SHARES I SHARES - ----------------------------- -------- -------- 7 Day Average Yield 2.53 2.68 7 Day Effective Yield 2.56 2.71 30 Day Average Yield 2.47 2.62
PAST PERFORMANCE DOES NOT GUARANTEE FUTURE RESULTS. THE PERFORMANCE DATA QUOTED REPRESENTS PAST PERFORMANCE AND CURRENT RETURNS MAY BE LOWER OR HIGHER. TOTAL RETURN FIGURES INCLUDE CHANGE IN SHARE PRICE, REINVESTMENT OF DIVIDENDS AND CAPITAL GAINS AND DO NOT REFLECT TAXES THAT A SHAREHOLDER WOULD PAY ON FUND DISTRIBUTIONS OR ON THE REDEMPTION OF FUND SHARES. THE INVESTMENT RETURN AND PRINCIPAL VALUE WILL FLUCTUATE SO THAT AN INVESTOR'S SHARES, WHEN REDEEMED MAY BE WORTH MORE OR LESS THAN THE ORIGINAL COST. FOR PERFORMANCE DATA CURRENT TO THE MOST RECENT MONTH END, VISIT OUR WEBSITE AT WWW.STICLASSICFUNDS.COM. The yield quotation more closely reflects the current earnings of the Fund than the total return. Effective August 1, 2005, T Shares were renamed I Shares. MATURITY DISTRIBUTION (as March 31, 2006)(2) as a percentage of total investments (PIE CHART) 1-2 Days 8.6% 3-14 Days 84.2% 30-89 Days 1.3% 90-365 Days 5.9%
(2) PORTFOLIO COMPOSITION IS SUBJECT TO CHANGE 51 This page is intentionally left blank. 52 SCHEDULES OF PORTFOLIO INVESTMENTS STI CLASSIC FUNDS March 31, 2006 (Amounts in thousands, except Shares) CORE BOND FUND
- -------------------------------------------------------- Principal Amount($) Value($) - -------------------------------------------------------- ASSET BACKED SECURITIES (2.8%) AUTOMOBILE ABS (0.7%) Daimler Chrysler Auto Trust, Ser 2005-A, Cl A4, 3.740%, 02/08/10 2,490 2,428 Honda Auto Receivables Owner Trust, Ser 2006-1, Cl A3, 5.070%, 02/18/10 1,105 1,102 -------- 3,530 -------- CREDIT CARD ABS (0.9%) BA Master Credit Card Trust, Ser 2001, Cl A, 4.869%, 06/15/08 (b) 1,664 1,664 Chase Issuance Trust, Ser 2005-A1, Cl A1, 4.759%, 12/15/10 (b) 2,606 2,606 -------- 4,270 -------- DIVERSIFIED FINANCIAL SERVICES (0.5%) SLM Student Loan Trust, Ser 2004-8, Cl A3, 4.713%, 07/27/15 (b) 2,582 2,586 -------- HOME EQUITY ABS (0.7%) Cityscape Home Equity Loan Trust, Ser 1996-3, Cl A8, 7.650%, 09/25/25 23 22 Countywide Home Equity Loan Trust, Ser 2006-C, Cl 2A, 5.041%, 05/15/36 (b) 3,280 3,281 Delta Funding Home Equity Loan Trust, Ser 1999-3, Cl A1F, 7.462%, 09/15/29 8 8 New Century Home Equity Loan Trust, Ser 1999-NCB, Cl A7, 7.540%, 06/25/29 8 8 Soundview Home Equity Loan Trust, Ser 2001-1, Cl A, 6.265%, 04/15/31 7 7 -------- 3,326 -------- Total Asset Backed Securities (Cost $13,727) 13,712 -------- COLLATERALIZED MORTGAGE OBLIGATIONS (2.3%) Banc of America Commercial Mortgage, Inc., Ser 2004-4, Cl A3, 4.128%, 07/10/42 2,350 2,264
- -------------------------------------------------------- Principal Amount($) Value($) - -------------------------------------------------------- COLLATERALIZED MORTGAGE OBLIGATIONS--CONTINUED Citigroup/Deutsche Bank Commercial Mortgage Trust, Ser 2005-CD1, Cl A4, 5.225%, 07/15/44 (b) 1,700 1,666 Citigroup/Deutsche Bank Commercial Mortgage Trust, Ser 2006-CD2, Cl A4, 5.545%, 01/15/46 1,115 1,100 GE Capital Commercial Mortgage Corp., Ser 2006-C1, Cl A4, 5.519%, 03/10/44 (b) 2,635 2,600 GS Mortgage Securities Corp. II, Ser 2006-GG6, Cl A2, 5.506%, 04/10/38 (b) 2,185 2,190 Wachovia Bank Commercial Mortgage Trust, Ser 2006-C23, Cl A4, 5.418%, 01/15/45 (b) 1,860 1,833 -------- Total Collateralized Mortgage Obligations (Cost $11,785) 11,653 -------- CORPORATE BONDS (9.8%) AEROSPACE/DEFENSE (0.3%) United Technologies Corp., 4.875%, 05/01/15 1,350 1,289 -------- AIRLINES (0.1%) Southwest Airlines Co., 5.125%, 03/01/17 650 602 -------- BANKS (0.3%) Bank of America Corp., 7.400%, 01/15/11 1,610 1,740 -------- COMMERCIAL SERVICES (0.1%) ERAC USA Finance Co., 5.600%, 05/01/15 (d) 395 385 -------- COSMETICS/PERSONAL CARE (0.3%) Avon Products, Inc., 5.125%, 01/15/11 1,615 1,586 -------- DIVERSIFIED FINANCIAL SERVICES (2.6%) CIT Group, Inc., 5.125%, 09/30/14 1,370 1,310 Citigroup, Inc., 5.125%, 05/05/14 420 408 Citigroup, Inc., 5.850%, 12/11/34 635 624 Fund American Cos., Inc., 5.875%, 05/15/13 1,795 1,764 Goldman Sachs Group, Inc. (The), 4.750%, 07/15/13 1,795 1,696
See Notes to Financial Statements. 53 SCHEDULES OF PORTFOLIO INVESTMENTS STI CLASSIC FUNDS March 31, 2006 (Amounts in thousands, except Shares) CORE BOND FUND -- CONTINUED
- -------------------------------------------------------- Principal Amount($) Value($) - -------------------------------------------------------- DIVERSIFIED FINANCIAL SERVICES--CONTINUED HSBC Holdings PLC, 7.625%, 05/17/32 655 776 International Lease Finance Corp., Ser Q, 5.250%, 01/10/13 650 632 John Deere Capital Corp., 3.900%, 01/15/08 370 361 JPMorgan Chase & Co., 6.625%, 03/15/12 1,685 1,770 Lazard Group LLC, 7.125%, 05/15/15 2,050 2,129 Morgan Stanley, 5.300%, 03/01/13 1,420 1,389 -------- 12,859 -------- ELECTRIC (0.8%) Exelon Corp., 4.900%, 06/15/15 1,255 1,166 Exelon Corp., 5.625%, 06/15/35 1,145 1,039 Northern States Power Co., 2.875%, 08/01/06 165 164 Pacific Gas & Electric Co., 6.050%, 03/01/34 1,270 1,242 Public Service Co. of Colorado, Ser 14, 4.375%, 10/01/08 200 196 -------- 3,807 -------- ENTERTAINMENT (0.1%) GTECH Holdings Corp., 4.750%, 10/15/10 410 399 -------- INSURANCE (0.1%) Metlife, Inc., 5.700%, 06/15/35 370 349 -------- INVESTMENT COMPANIES (0.1%) Credit Suisse First Boston USA, Inc., 6.500%, 01/15/12 605 632 -------- MEDIA (0.4%) Cox Communications, Inc., 4.625%, 06/01/13 915 834 News America Holdings, Inc., 6.200%, 12/15/34 645 604 Time Warner, Inc., 7.625%, 04/15/31 675 735 -------- 2,173 -------- MISCELLANEOUS MANUFACTURER (0.6%) General Electric Co., 5.000%, 02/01/13 2,935 2,855 --------
- -------------------------------------------------------- Principal Amount($) Value($) - -------------------------------------------------------- OIL & GAS (0.3%) Devon Financing Corp. ULC, 7.875%, 09/30/31 760 917 Enterprise Products Operating LP, Ser B, 5.750%, 03/01/35 745 663 -------- 1,580 -------- PHARMACEUTICALS (0.1%) Teva Pharmaceutical Finance LLC, 5.550%, 02/01/16 465 448 Teva Pharmaceutical Finance LLC, 6.150%, 02/01/36 300 283 -------- 731 -------- PIPELINES (0.5%) Centerpoint Energy Resources Corp., Ser B, 7.875%, 04/01/13 1,000 1,114 Kinder Morgan, Inc., 6.400%, 01/05/36 1,220 1,188 Panhandle Eastern Pipe Line Co. LLC, Ser B, 4.800%, 08/15/08 345 339 -------- 2,641 -------- REITS (0.1%) Simon Property Group LP, 6.375%, 11/15/07 410 416 -------- RETAIL (0.6%) Federated Department Stores, Inc., 6.900%, 04/01/29 380 395 Woolworths Ltd., 5.550%, 11/15/15 (d) 2,475 2,413 -------- 2,808 -------- TELECOMMUNICATIONS (2.4%) AT&T, Inc., 5.100%, 09/15/14 2,720 2,581 BellSouth Corp., 5.200%, 09/15/14 2,060 1,970 Cisco Systems, Inc., 5.500%, 02/22/16 1,615 1,591 Comcast Corp., 4.950%, 06/15/16 1,155 1,053 Comcast Corp., 6.450%, 03/15/37 750 722 Telecom Italia Capital SA, 5.250%, 10/01/15 1,515 1,410 Verizon Communications, Inc., 5.850%, 09/15/35 685 614
See Notes to Financial Statements. 54 SCHEDULES OF PORTFOLIO INVESTMENTS STI CLASSIC FUNDS March 31, 2006 (Amounts in thousands, except Shares) CORE BOND FUND -- CONTINUED
- -------------------------------------------------------- Principal Amount($) Value($) - -------------------------------------------------------- TELECOMMUNICATIONS--CONTINUED Vodafone Group PLC, 5.500%, 06/15/11 2,095 2,075 -------- 12,016 -------- Total Corporate Bonds (Cost $50,457) 48,868 -------- U.S. GOVERNMENT AGENCY MORTGAGES (29.6%) FANNIE MAE (20.4%) 5.000%, 12/01/18 2,187 2,132 5.000%, 12/01/18 9,662 9,445 5.000%, 08/01/19 220 215 5.500%, 08/01/19 715 711 5.000%, 09/01/19 144 141 5.500%, 09/01/19 228 227 5.500%, 09/01/19 1,105 1,099 5.500%, 09/01/19 3,879 3,860 5.000%, 10/01/19 239 233 5.000%, 10/01/19 154 150 5.500%, 12/01/19 61 61 4.500%, 04/15/20 (c) 4,512 4,313 6.500%, 06/01/32 77 79 5.500%, 01/01/33 15,943 15,563 5.500%, 02/01/33 444 433 6.500%, 03/01/33 271 276 5.500%, 06/01/33 2,601 2,540 5.500%, 10/01/33 3,821 3,730 6.500%, 10/01/33 107 109 6.500%, 10/01/33 108 111 5.000%, 11/01/33 5,359 5,102 5.000%, 11/01/33 3,479 3,312 6.500%, 11/01/33 121 124 6.500%, 11/01/33 764 780 5.000%, 03/01/34 3,034 2,889 5.000%, 03/01/34 3,921 3,733 5.000%, 04/01/34 7,833 7,458 4.708%, 07/01/34 (b) 4,493 4,398 6.500%, 07/01/34 124 127 6.500%, 07/01/34 1,077 1,099 6.500%, 01/01/35 3,749 3,826 6.000%, 10/01/35 4,366 4,366 6.500%, 11/01/35 5,715 5,831 5.170%, 01/01/36 (b) 4,863 4,831 6.000%, 01/01/36 5,202 5,204 5.501%, 03/01/36 (b) 3,082 3,059 -------- 101,567 --------
- -------------------------------------------------------- Principal Amount($) Value($) - -------------------------------------------------------- FREDDIE MAC (9.2%) 4.500%, 05/01/18 4,714 4,512 4.500%, 10/01/18 301 288 4.500%, 12/01/18 3,252 3,110 6.000%, 12/01/31 1,496 1,499 6.500%, 07/01/32 160 164 6.000%, 12/01/32 920 920 6.000%, 04/01/33 1,464 1,465 5.000%, 07/01/33 211 201 6.000%, 10/01/33 31 31 6.000%, 12/01/33 284 285 6.500%, 05/01/34 2,563 2,613 6.000%, 07/01/34 1,047 1,048 5.500%, 04/01/35 4,932 4,817 6.000%, 04/01/35 5,475 5,478 6.000%, 04/13/35 (c) 13,364 13,368 4.645%, 08/01/35 (b) 2,451 2,382 4.931%, 11/01/35 (b) 3,750 3,710 -------- 45,891 -------- Total U.S. Government Agency Mortgages (Cost $150,125) 147,458 -------- U.S. TREASURY OBLIGATIONS (54.3%) U.S. TREASURY BONDS (5.5%) 4.500%, 02/15/36 29,340 27,529 -------- U.S. TREASURY INFLATION PROTECTED NOTES/BONDS (4.4%) 1.625%, 01/15/15 22,480 22,032 -------- U.S. TREASURY NOTES (44.4%) 2.250%, 04/30/06 21,505 21,463 3.125%, 05/15/07 23,780 23,329 4.625%, 02/29/08 12,420 12,370 5.625%, 05/15/08 23,360 23,726 3.375%, 12/15/08 40,750 39,268 4.500%, 02/15/09 1,975 1,958 6.000%, 08/15/09 21,280 22,049 4.250%, 10/15/10 30,750 30,032 4.500%, 02/28/11 16,025 15,792 4.250%, 08/15/13 22,970 22,092 4.250%, 11/15/14 9,491 9,071 -------- 221,150 -------- Total U.S. Treasury Obligations (Cost $275,814) 270,711 --------
See Notes to Financial Statements. 55 SCHEDULES OF PORTFOLIO INVESTMENTS STI CLASSIC FUNDS March 31, 2006 (Amounts in thousands, except Shares) CORE BOND FUND -- CONCLUDED
- -------------------------------------------------------- Principal Amount($) Value($) - -------------------------------------------------------- REPURCHASE AGREEMENT (7.7%) Lehman Brothers, Inc., 4.755%, dated 03/31/06, to be repurchased on 04/03/06, repurchase price $38,485,319 (collateralized by U.S. Government Agencies, DN, due 12/01/34; total market value $39,241,174) 38,470 38,470 -------- Total Repurchase Agreement (Cost $38,470) 38,470 -------- Total Investments (Cost $540,378) (a) -- 106.5% 530,872 Liabilities in excess of other assets -- (6.5)% (32,621) -------- Net Assets -- 100.0% $498,251 ========
- --------------- (a)Cost for federal income tax purposes is $540,628 (amount in thousands). Unrealized appreciation/(depreciation) on a tax basis is as follows (amounts in thousands): Unrealized Appreciation.................. $ 81 Unrealized Depreciation.................. (9,837) ------- Unrealized Appreciation (Depreciation)... $(9,756) =======
(b)Variable rate security. Rate presented represents rate in effect at March 31, 2006. Maturity date represents actual maturity date. (c)This security was purchased on a when-issue basis. (d)Rule 144A, Section 4(2) or other security which is restricted as to resale to institutional investors. The Fund's advisor has deemed this security to be liquid based upon procedures approved by the Board of Trustees. Cl -- Class DN -- Discount Note LLC -- Limited Liability Corporation LP -- Limited Partnership PLC -- Public Limited Company REIT -- Real Estate Investment Trust Ser -- Series See Notes to Financial Statements. 56 SCHEDULES OF PORTFOLIO INVESTMENTS STI CLASSIC FUNDS March 31, 2006 (Amounts in thousands, except Shares) FLORIDA TAX-EXEMPT BOND FUND
- ------------------------------------------------------- Shares or Principal Amount($) Value($) - ------------------------------------------------------- MUNICIPAL BONDS (96.4%) CALIFORNIA (3.1%) Los Angeles Unified School District, Election of 2005, Ser A, GO, 5.000%, 07/01/09, AMBAC 5,260 5,499 -------- FLORIDA (68.7%) Brevard County School Board, COP, 5.500%, 07/01/17, Callable 07/01/12 @ 100, AMBAC 1,860 2,009 Brevard County School Board, COP, 5.500%, 07/01/18, Callable 07/01/12 @ 100, AMBAC 3,015 3,257 Brevard County Utility Authority, RB, 5.250%, 03/01/13, Callable 03/01/12 @ 100, FGIC 1,000 1,070 Brevard County Utility Authority, RB, 5.250%, 03/01/14, Callable 03/01/12 @ 100, FGIC 1,000 1,069 Charlotte County Utilities, Ser A, RB, 3.160%, 10/01/21, FSA (b) 4,000 4,001 Charlotte County Utilities, Ser B, RB, 3.180%, 10/01/21, FSA (b) 3,260 3,260 Collier County Gas Tax, RB, 5.000%, 06/01/22, Callable 06/01/15 @ 100, AMBAC 5,035 5,288 Collier County Gas Tax, RB, 5.000%, 06/01/23, Callable 06/01/15 @ 100, AMBAC 6,160 6,455 Deerfield Beach Water & Sewer Authority, Refunding & Improvement Project, RB, 6.125%, 10/01/06, FGIC 30 30 Florida Municipal Power Agency, Requirements Power Supply, Ser A, RB, 5.000%, 10/01/08, FSA 6,000 6,200 Florida State Board of Education, Capital Outlay, Public Education Project, GO, 9.125%, 06/01/14, ETM 950 1,276
- ------------------------------------------------------- Shares or Principal Amount($) Value($) - ------------------------------------------------------- FLORIDA--CONTINUED Florida State Board of Education, Capital Outlay, Public Education Project, Ser B, GO, 5.250%, 06/01/11, Callable 06/01/08 @ 101 1,000 1,041 Florida State Board of Education, Capital Outlay, Public Education Project, Ser B, GO, 5.375%, 06/01/18, Callable 06/01/12 @ 101 2,130 2,300 Florida State Board of Education, Capital Outlay, Public Education Project, Ser D, GO, 5.375%, 06/01/15, Callable 06/01/12 @ 100 1,535 1,655 Florida State Board of Education, Capital Outlay, Public Education Project, Ser D, GO, 5.625%, 06/01/15, Callable 06/01/10 @ 101 1,235 1,332 Florida State Board of Education, Capital Outlay, Ser C, GO, 7.100%, 06/01/07, Callable 06/01/06 @ 100, ETM 190 190 Florida State Board of Education, Lottery, Ser A, RB, 6.000%, 07/01/12, Callable 07/01/10 @ 101, FGIC 1,295 1,415 Florida State Board of Education, Lottery, Ser A, RB, 5.375%, 07/01/15, Callable 07/01/12 @ 101, FGIC 3,500 3,789 Florida State Board of Education, Ser B, GO, 5.000%, 01/01/10 4,000 4,185 Florida State Division of Bond Finance, Department of Environmental Protection & Preservation, Ser 2000-A, RB, 5.375%, 07/01/11, Callable 07/01/09 @ 101, FGIC 2,130 2,254
See Notes to Financial Statements. 57 SCHEDULES OF PORTFOLIO INVESTMENTS STI CLASSIC FUNDS March 31, 2006 (Amounts in thousands, except Shares) FLORIDA TAX-EXEMPT BOND FUND -- CONTINUED
- ------------------------------------------------------- Shares or Principal Amount($) Value($) - ------------------------------------------------------- FLORIDA--CONTINUED Florida State Housing Financing Authority, Homeowner Mortgage Project, Ser 7, RB, AMT, 5.200%, 01/01/31, Callable 07/01/09 @ 100, FSA 190 191 Greater Orlando Aviation Authority, Airport Facilities, RB, AMT, 5.500%, 10/01/17, FGIC 1,810 1,974 Hillsborough County Community Improvement Tax, RB, 5.000%, 11/01/25, Callable 11/01/13 @ 101, AMBAC 2,345 2,451 Hillsborough County Industrial Development Authority, University Community Hospital Project, RB, 6.500%, 08/15/19, MBIA 145 173 Jacksonville Electric Authority, Electrical Systems Project, Ser 3-A, RB, 5.250%, 10/01/13, Callable 10/01/07 @ 101 1,000 1,034 Jacksonville Health Facilities Authority, Charity Obligation Group, Ser C, RB, 5.750%, 08/15/13, Prerefunded 08/15/11 @ 101 3,090 3,312 Jacksonville Sales Tax, RB, 5.500%, 10/01/13, Callable 10/01/11 @ 100, AMBAC 1,435 1,548 Jacksonville Sales Tax, RB, 5.500%, 10/01/14, Callable 10/01/11 @ 100, AMBAC 1,200 1,291 Jacksonville Sales Tax, RB, 5.500%, 10/01/15, Callable 10/01/11 @ 100, AMBAC 1,550 1,668 JEA Electric System, Ser-3-A, RB, 5.500%, 10/01/41, Prerefunded 10/01/07 @ 100 4,500 4,626 JEA Water & Sewer Systems, Second Crossover, RB, 5.000%, 10/01/24, Callable 10/01/14 @ 100, MBIA 2,000 2,086
- ------------------------------------------------------- Shares or Principal Amount($) Value($) - ------------------------------------------------------- FLORIDA--CONTINUED Lee County Industrial Development Authority, Bonita Springs Utilities Project, RB, AMT, 5.750%, 11/01/10, Callable 11/01/06 @ 101, MBIA 1,480 1,509 Lee County Memorial Health Systems Hospital, Ser A, RB, 5.750%, 04/01/15, Callable 04/01/12 @ 100, FSA 1,000 1,095 Lee County Transportation Facility Authority, Ser A, RB, 5.500%, 10/01/13, Callable 10/01/11 @ 100, AMBAC 2,000 2,157 Lee County Transportation Facility Authority, Ser A, RB, 5.000%, 10/01/27, Callable 10/01/14 @ 100, AMBAC 6,000 6,253 Manatee County Improvement Project, RB, 5.000%, 10/01/23, Callable 10/01/14 @ 100, FGIC 2,095 2,195 Miami Parking Facilities Authority, RB, 5.250%, 10/01/15, MBIA 1,000 1,083 Miami-Dade County School Board, Ser A, COP, 5.000%, 11/01/20, Callable 11/01/16 @ 100, AMBAC 3,830 4,042 Orange County Health Facilities Authority, Ser C, RB, 6.250%, 10/01/16, MBIA 4,855 5,678 Orange County School Board, Ser A, COP, 5.500%, 08/01/18, Callable 08/01/12 @ 100, MBIA 2,335 2,551 Orange County Tourist Development Tax, RB, 5.500%, 10/01/11, Callable 10/1/09 @ 100, AMBAC 3,030 3,209 Osceola County Tourist Development Tax Authority, Ser A, RB, 5.500%, 10/01/15, Callable 10/01/12 @ 100, FGIC 1,000 1,087
See Notes to Financial Statements. 58 SCHEDULES OF PORTFOLIO INVESTMENTS STI CLASSIC FUNDS March 31, 2006 (Amounts in thousands, except Shares) FLORIDA TAX-EXEMPT BOND FUND -- CONTINUED
- ------------------------------------------------------- Shares or Principal Amount($) Value($) - ------------------------------------------------------- FLORIDA--CONTINUED Palm Beach County Criminal Justice Facility, RB, 5.000%, 06/01/15 1,865 1,997 Palm Beach County Land Acquisition Program, Ser A, GO, 5.375%, 06/01/13, Callable 06/01/11 @ 100 2,260 2,417 Palm Beach County Land Acquisition Program, Ser A, GO, 5.375%, 06/01/14, Callable 06/01/11 @ 100 1,050 1,124 Palm Beach County Land Acquisition Program, Ser A, GO, 5.500%, 06/01/16, Callable 06/01/11 @ 100 1,200 1,291 Palm Beach County School Board Authority, Ser C, COP, 5.500%, 08/01/14, Callable 08/01/12 @ 100, FSA 2,735 2,974 Palm Beach County, Waterfront Access Projects, GO, 5.000%, 08/01/23, Callable 08/01/16 @ 100 2,000 2,119 Pensacola Airport Authority, Ser A, RB, AMT, 6.250%, 10/01/09, AMBAC 505 543 Pensacola Airport Authority, Ser A, RB, AMT, 6.000%, 10/01/12, Callable 10/01/08 @ 102, MBIA 1,075 1,141 Plant City Utility Systems Authority, Refunding & Improvements Project, RB, 6.000%, 10/01/15, MBIA 400 450 Polk County School District Sales Tax Authority, RB, 5.250%, 10/01/15, Callable 10/01/14 @ 100, FSA 2,000 2,167 Polk County Utility Systems Authority, RB, 6.000%, 10/01/08, FGIC 1,430 1,477 Tampa Guaranteed Entitlement Authority, RB, 6.000%, 10/01/18, AMBAC 500 564
- ------------------------------------------------------- Shares or Principal Amount($) Value($) - ------------------------------------------------------- FLORIDA--CONTINUED Tampa Sales Tax Authority, Ser A, RB, 5.375%, 10/01/14, Callable 10/01/11 @ 101, AMBAC 1,640 1,772 -------- 123,325 -------- ILLINOIS (3.1%) Du Page County Transportation, RB, 5.750%, 01/01/18, Prerefunded 07/01/11 @ 100, FSA 5,000 5,472 -------- PUERTO RICO (20.3%) Puerto Rico Commonwealth Highway & Transportation Authority, RB, 5.250%, 07/01/15, Callable 07/01/13 @ 100, FGIC 5,860 6,334 Puerto Rico Commonwealth Highway & Transportation Authority, Ser G, RB, 5.250%, 07/01/15, Callable 07/01/13 @ 100, FGIC 3,000 3,243 Puerto Rico Commonwealth Highway & Transportation Authority, Ser I, RB, 5.000%, 07/01/23, Callable 07/01/14 @ 100, FGIC 3,000 3,149 Puerto Rico Commonwealth Infrastructure Financing Authority, Special Tax, Ser C, RB, 5.500%, 07/01/15, AMBAC 1,000 1,109 Puerto Rico Commonwealth Infrastructure Financing Authority, Special Tax, Ser C, RB, 5.500%, 07/01/17, AMBAC 12,450 13,877 Puerto Rico Commonwealth Municipal Finance Agency, Ser A, RB, 5.250%, 08/01/14, Callable 08/01/12 @ 100, FSA 6,965 7,489 Puerto Rico Commonwealth Municipal Finance Agency, Ser A, RB, 5.250%, 08/01/16, Callable 08/01/12 @ 100, FSA 1,020 1,095 -------- 36,296 --------
See Notes to Financial Statements. 59 SCHEDULES OF PORTFOLIO INVESTMENTS STI CLASSIC FUNDS March 31, 2006 (Amounts in thousands, except Shares) FLORIDA TAX-EXEMPT BOND FUND -- CONCLUDED
- ------------------------------------------------------- Shares or Principal Amount($) Value($) - ------------------------------------------------------- TEXAS (1.2%) University of Houston, RB, 5.500%, 02/15/30, Prerefunded 02/15/10 @ 100, MBIA 2,000 2,127 -------- Total Municipal Bonds (Cost $172,193) 172,719 -------- MONEY MARKET FUNDS (2.7%) Federated Tax-Free Obligations Fund 4,846,110 4,847 SEI Tax Exempt Trust, Institutional Tax Free Fund (c) 462 0 -------- Total Money Market Funds (Cost $4,847) 4,847 -------- Total Investments (Cost $177,040) (a) -- 99.1% 177,566 Other assets in excess of liabilities -- 0.9% 1,635 -------- Net Assets -- 100.0% $179,201 ========
- --------------- (a)Cost for federal income tax and financial reporting purposes is the same. Unrealized appreciation/(depreciation) is as follows (amounts in thousands): Unrealized Appreciation................... $ 1,734 Unrealized Depreciation................... (1,208) ------- Unrealized Appreciation (Depreciation).... $ 526 =======
(b)Variable rate security. Rate presented represents rate in effect at March 31, 2006. Maturity date represents actual maturity date. (c)Market value is less than one thousand dollars. AMBAC -- Security insured by the American Municipal Bond Assurance Corporation AMT -- Alternative Minimum Tax Paper COP -- Certificate of Participation ETM -- Escrowed to Maturity FGIC -- Security insured by the Financial Guaranty Insurance Company FSA -- Security insured by Financial Security Assurance GO -- General Obligation MBIA -- Security insured by the Municipal Bond Insurance Association RB -- Revenue Bond Ser -- Series See Notes to Financial Statements. 60 SCHEDULES OF PORTFOLIO INVESTMENTS STI CLASSIC FUNDS March 31, 2006 (Amounts in thousands, except Shares) GEORGIA TAX-EXEMPT BOND FUND
- ------------------------------------------------------- Shares or Principal Amount($) Value($) - ------------------------------------------------------- MUNICIPAL BONDS (96.4%) GEORGIA (91.9%) Association County Commissioners of Georgia Leasing Program, Georgia Public Purpose Project, COP, 5.250%, 04/01/21, Callable 04/01/14 @ 102 2,680 2,887 Athens Housing Authority, Student Housing Lease Project, RB, 5.250%, 12/01/21, Callable 12/01/12 @ 100, AMBAC 1,000 1,055 Atlanta Airport Passenger Facility Charge, Ser J, RB, 5.000%, 01/01/34, Callable 01/01/15 @ 100, FSA 7,500 7,708 Atlanta Airport Project, Ser A, RB, AMT, 5.375%, 01/01/19, Callable 07/01/14 @ 100, FSA 5,000 5,326 Atlanta Development Authority Student Housing, Ser A, 5.000%, 09/01/30, Callable 09/01/15 @ 100, XLCA 2,600 2,701 Atlanta Water & Sewer, RB, 5.250%, 01/01/27, Prerefunded 01/01/07 @ 101, FGIC 2,000 2,045 Augusta Water & Sewer Authority, RB, 5.250%, 10/01/34, Callable 10/01/14 @ 100, FSA 2,000 2,125 Barrow County, GO, 4.500%, 10/01/11, FGIC 1,255 1,300 Bibb County School District, GO, 5.000%, 04/01/09, LOC: St Aid Withholding 3,700 3,843 Brunswick Water & Sewer, Refunding & Improvement Project, RB, 6.100%, 10/01/14, MBIA 1,000 1,132 Burke County Development Authority Pollution Control, Vogtle Project, RB, 3.200%, 10/01/32 (b) 1,607 1,607
- ------------------------------------------------------- Shares or Principal Amount($) Value($) - ------------------------------------------------------- GEORGIA--CONTINUED Burke County Development Authority, Pollution Control, Vogtle Project, RB, 3.290%, 10/01/32 (b) 6,395 6,395 Carroll County Water Authority, Water & Sewer, RB, 5.250%, 07/01/22, Callable 07/01/15 @ 100, FSA 1,000 1,082 Carrollton Payroll Development Authority, UWG Campus Center, RB, 5.250%, 08/01/27, Callable 8/01/14 @ 100, MBIA 1,650 1,755 Central Valdosta Development Authority, Lowndes County Judicial Project, RB, 5.250%, 06/01/21, Callable 06/01/13 @ 102 1,885 2,020 Clarke County Hospital Authority, Athens Regional Medical Center Project, RB, 5.375%, 01/01/07, MBIA 1,425 1,444 Cobb County Development Authority, Kennesaw State University Project, RB, 5.000%, 07/15/29, Callable 07/15/14 @ 100, MBIA 2,250 2,340 Cobb County Development Authority, Kennesaw State University Project, Ser A, RB, 5.000%, 07/15/29, Callable 07/15/14 @ 100, MBIA 2,000 2,073 Cobb County Development Authority, Solid Waste Disposal, Georgia Waste Management Project, Ser A. RB, AMT, 5.000%, 04/01/33, Callable 04/01/16 @ 101 1,000 991 Cobb-Marietta County Coliseum & Exhibit Hall Project, RB, 5.500%, 10/01/12, MBIA 940 1,010
See Notes to Financial Statements. 61 SCHEDULES OF PORTFOLIO INVESTMENTS STI CLASSIC FUNDS March 31, 2006 (Amounts in thousands, except Shares) GEORGIA TAX-EXEMPT BOND FUND -- CONTINUED
- ------------------------------------------------------- Shares or Principal Amount($) Value($) - ------------------------------------------------------- GEORGIA--CONTINUED College Park Business & Industrial Development Authority, Civic Center Project, RB, 5.500%, 09/01/11, Prerefunded 09/01/10 @ 102, AMBAC 1,690 1,842 Columbus, Sales Tax, GO, 5.000%, 07/01/08 1,000 1,031 Coweta County Development Authority, Newnan Water, Sewer & Light Commission, RB, 5.000%, 07/01/25, Callable 07/01/15 @ 100, MBIA 1,000 1,044 Dalton Utilities, RB, 6.000%, 01/01/08, MBIA 3,240 3,369 Dekalb County Public Safety & Judicial Facilities Authority, Public Safety & Judicial Facility Project, RB, 5.000%, 12/01/29, Callable 01/01/14 @ 101 1,000 1,040 Douglasville-Douglas County Water & Sewer Authority, RB, 5.625%, 06/01/15, Callable 12/01/15 @ 100, AMBAC 1,390 1,505 Douglasville-Douglas County Water & Sewer Authority, RB, 5.000%, 06/01/28, Callable 12/01/15 @ 100, MBIA 2,000 2,086 Forsyth County Hospital Authority, Baptist Health Care System Project, RB, 6.375%, 10/01/28, ETM 1,000 1,217 Fulton County Development Authority, Molecular Science Building Project, RB, 5.250%, 05/01/22, Callable 05/01/14 @ 100, MBIA 2,370 2,535 Fulton County Development Authority, Molecular Science Building Project, RB, 5.250%, 05/01/27, Callable 05/01/14 @ 100, MBIA 3,375 3,598
- ------------------------------------------------------- Shares or Principal Amount($) Value($) - ------------------------------------------------------- GEORGIA--CONTINUED Fulton County Water & Sewer, RB, 5.000%, 01/01/24, Callable 01/01/14 @ 100, FGIC 2,000 2,087 Georgia Municipal Electric Authority, RB, 8.000%, 01/01/15, Callable 05/16/06 @ 100, ETM 1,900 2,402 Georgia State Private College & Universities Facilities Authority, Mercer University Project, RB, 6.400%, 11/01/11, MBIA, ETM 1,675 1,827 Gwinnett County Development Authority, Public Schools Project, COP, 5.250%, 01/01/21, Callable 01/01/14 @ 100, MBIA 2,910 3,092 Gwinnett County Hospital Authority, Gwinnett Hospital Systems Project, Ser B, RB, 5.000%, 10/01/24, Callable 10/01/14 @ 100 1,250 1,299 Gwinnett County Public Schools Project, COP, 5.250%, 01/01/25, Callable 01/01/14 @ 100, MBIA 1,500 1,589 Gwinnett County School District, Ser B, GO, 6.400%, 02/01/07 1,500 1,535 Habersham County School District, GO, 4.500%, 04/01/12, MBIA 1,335 1,382 Henry County Hospital Authority, Henry Medical Center Project, RB, 5.500%, 07/01/08, Prerefunded 07/01/07 @ 102, AMBAC 1,640 1,710 Henry County Water & Sewer, RB, 6.150%, 02/01/20, AMBAC 2,100 2,508 Metropolitan Atlanta Rapid Transit Authority, Ser E, RB, 7.000%, 07/01/11, ETM 3,595 4,035 Metropolitan Atlanta Rapid Transit Authority, Ser N, RB, 6.000%, 07/01/07 2,090 2,151
See Notes to Financial Statements. 62 SCHEDULES OF PORTFOLIO INVESTMENTS STI CLASSIC FUNDS March 31, 2006 (Amounts in thousands, except Shares) GEORGIA TAX-EXEMPT BOND FUND -- CONTINUED
- ------------------------------------------------------- Shares or Principal Amount($) Value($) - ------------------------------------------------------- GEORGIA--CONTINUED Milledgeville-Baldwin County Development Authority, Georgia College & State University Foundation, RB, 6.000%, 09/01/33, Callable 09/01/14 @ 101 2,355 2,547 Municipal Electric Authority of Georgia, Combustion, Ser A, RB, 5.000%, 11/01/24, Callable 11/01/07 @ 100 2,000 2,033 Newnan Hospital Authority, Newnan Hospital Project, RB, 5.500%, 01/01/16, Callable 01/01/13 @100, MBIA 2,435 2,619 Newnan Hospital Authority, Newnan Hospital Project, RB, 5.500%, 01/01/17, Callable 01/01/13 @ 100, MBIA 2,570 2,763 Oconee County Industrial Development Authority, OIIT Project, RB, 5.250%, 07/01/23, Callable 07/01/13 @ 100 1,295 1,363 Paulding County School District, GO, 6.000%, 02/01/10, MBIA 1,000 1,081 Paulding County School District, Ser A, GO, 6.625%, 02/01/07 1,000 1,025 Paulding County School District, Ser A, GO, 6.625%, 02/01/08 525 552 Rockdale County Water & Sewer Authority, RB, 5.000%, 07/01/29, Callable 07/01/15 @ 100, FSA 2,000 2,084 Savannah Economic Development Authority, AASU Compass Point LLC Project, RB,, 5.000%, 07/01/29, Callable 07/01/15 @ 100, XLCA 1,695 1,758 Upper Oconee Basin Water Authority, RB, 5.000%, 07/01/26, Callable 07/01/15 @ 100, MBIA 2,000 2,093
- ------------------------------------------------------- Shares or Principal Amount($) Value($) - ------------------------------------------------------- GEORGIA--CONTINUED Valdosta & Lowndes County Hospital Authority, South Georgia Medical Center Project, RB, 5.250%, 10/01/27, Callable 10/01/12 @ 101, AMBAC 1,110 1,171 Vidalia Water & Sewer, RB, 6.000%, 07/01/07, ETM 605 623 Walker, Dade & Catoosa Counties Hutcheson Medical Project, Ser A, RB, 5.500%, 10/01/08, Callable 10/01/07 @ 102, FSA 1,370 1,429 -------- 118,864 -------- GUAM (1.0%) Guam International Airport Authority, Ser A, RB, AMT, 5.000%, 10/01/06, MBIA 1,250 1,259 -------- PUERTO RICO (3.5%) Puerto Rico Commonwealth Highway & Transportation Authority, Ser AA, RB, 5.000%, 07/01/06 2,080 2,087 Puerto Rico Municipal Finance Agency, Ser A, GO, 5.000%, 08/01/30, Callable 08/01/15 @ 100, FSA 2,300 2,405 -------- 4,492 -------- Total Municipal Bonds (Cost $122,142) 124,615 -------- MONEY MARKET FUNDS (2.5%) Federated Tax-Free Obligations Fund 2,778,706 2,779 SEI Tax Exempt Trust, Institutional Tax Free Fund 397,171 397 -------- Total Money Market Funds (Cost $3,176) 3,176 -------- Total Investments (Cost $125,318) (a) -- 98.9% 127,791 Other assets in excess of liabilities -- 1.1% 1,416 -------- Net Assets -- 100.0% $129,207 ========
See Notes to Financial Statements. 63 SCHEDULES OF PORTFOLIO INVESTMENTS STI CLASSIC FUNDS March 31, 2006 (Amounts in thousands, except Shares) GEORGIA TAX-EXEMPT BOND FUND -- CONCLUDED - --------------- (a)Cost for federal income tax and financial reporting purposes is the same. Unrealized appreciation/ (depreciation) is as follows (amounts in thousands): Unrealized Appreciation................... $2,761 Unrealized Depreciation................... (288) ------ Unrealized Appreciation (Depreciation).... $2,473 ======
(b)Variable rate security. Rate presented represents rate in effect at March 31, 2006. Maturity date represents actual maturity date. AMBAC -- Security insured by the American Municipal Bond Assurance Corporation AMT -- Alternative Minimum Tax Paper COP -- Certificate of Participation ETM -- Escrowed to Maturity FGIC -- Security insured by the Financial Guaranty Insurance Company FSA -- Security insured by Financial Security Assurance GO -- General Obligation LLC -- Limited Liability Company LOC -- Line of Credit MBIA -- Security insured by the Municipal Bond Insurance Association RB -- Revenue Bond Ser -- Series XLCA -- Security insured by XL Capital Assurance, Inc. See Notes to Financial Statements. 64 SCHEDULES OF PORTFOLIO INVESTMENTS STI CLASSIC FUNDS March 31, 2006 (Amounts in thousands, except Shares) HIGH INCOME FUND
- ------------------------------------------------------- Shares or Principal Amount($) Value($) - ------------------------------------------------------- BANK LOANS (4.7%) COMPUTERS (0.6%) Stratus Technologies, Inc., 13.830%, 03/15/12 (b) (d) 450 437 -------- ENERGY (0.6%) Plum Point Associates LLC, 8.044%, 02/21/14 (b) (d) 363 365 Plum Point Associates LLC, 8.167%, 02/21/14 (b) (d) 87 88 -------- 453 -------- TELECOMMUNICATIONS (3.5%) Charter Communications Operating LLC, 0.000%, 04/27/11 (b) (d) (h) 448 451 Qwest Corp., 9.503%, 06/30/07 (b) (d) 2,023 2,073 -------- 2,524 -------- Total Bank Loans (Cost $3,432) 3,414 -------- CORPORATE BONDS (90.5%) ADVERTISING (0.4%) R.H. Donnelley Corp., 10.875%, 12/15/12, Callable 12/15/07 @ 105.44 250 277 -------- AUTO PARTS & EQUIPMENT (2.8%) Goodyear Tire & Rubber Co. (The), 9.000%, 07/01/15, Callable 07/01/10 @ 104.50 2,000 2,030 -------- BUILDING MATERIALS (3.6%) Nortek, Inc., 8.500%, 09/01/14, Callable 09/01/09 @ 104.25 1,040 1,058 U.S. Concrete, Inc., 8.375%, 04/01/14, Callable 04/01/09 @ 104.188 1,500 1,545 -------- 2,603 -------- CHEMICALS (7.0%) Equistar Chemical Funding Corp., 10.125%, 09/01/08 1,900 2,019 Huntsman International LLC, 11.625%, 10/15/10, Callable 10/15/07 @ 105.81 250 283 IMC Global, Inc., Ser B, 11.250%, 06/01/11, Callable 06/01/06 @ 105.625 15 16 Ineos Group Holdings PLC, 8.500%, 02/15/16, Callable 02/15/11 @ 104.25 (d) 1,555 1,477 Lyondell Chemical Co., Ser A, 9.625%, 05/01/07 100 103
- ------------------------------------------------------- Shares or Principal Amount($) Value($) - ------------------------------------------------------- <->CHEMICALS--CONTINUED Rockwood Specialties Group, Inc., 7.500%, 11/15/14, Callable 11/15/09 @ 103.75 (e) 1,250 1,256 -------- 5,154 -------- COMMERCIAL SERVICES (1.4%) Ashtead Holdings PLC, 8.625%, 08/01/15, Callable 08/01/10 @ 104.31 (d) 1,000 1,040 -------- COMPUTERS (3.5%) Activant Solutions, Inc., 10.500%, 06/15/11, Callable 06/15/07 @ 105.25 1,425 1,578 Sungard Data Systems, Inc., 10.250%, 08/15/15, Callable 08/15/10 @ 105.13 (d) (e) 910 958 -------- 2,536 -------- DIVERSIFIED FINANCIAL SERVICES (2.7%) CCM Merger, Inc., 8.000%, 08/01/13, Callable 08/01/09 @ 104 (d) (e) 95 95 Galaxy Entertainment Finance Co. Ltd., 9.875%, 12/15/12, Callable 12/15/09 @ 104.94 (d) 100 104 General Motors Acceptance Corp., 6.875%, 09/15/11 1,880 1,752 -------- 1,951 -------- DIVERSIFIED OPERATIONS (3.0%) Leucadia National Corp., 7.000%, 08/15/13 500 501 Nell AF SARL, 8.375%, 08/15/15, Callable 08/15/10 @ 104.19 (d) (e) 1,675 1,663 -------- 2,164 -------- ELECTRIC (10.5%) AES Corp. (The), 9.500%, 06/01/09 1,030 1,109 Aquila, Inc., 14.875%, 07/01/12 (e) 1,420 1,920 Edison Mission Energy, 10.000%, 08/15/08 500 535 FPL Energy National Wind, 6.125%, 03/25/19 (d) 235 229 Mirant Americas Generation LLC, 8.300%, 05/01/11 380 393 Mirant Americas Generation LLC, 9.125%, 05/01/31 100 107
See Notes to Financial Statements. 65 SCHEDULES OF PORTFOLIO INVESTMENTS STI CLASSIC FUNDS March 31, 2006 (Amounts in thousands, except Shares) HIGH INCOME FUND -- CONTINUED
- ------------------------------------------------------- Shares or Principal Amount($) Value($) - ------------------------------------------------------- <->ELECTRIC--CONTINUED Mission Energy Holdings Co., 13.500%, 07/15/08 1,050 1,204 NRG Energy, Inc., 7.250%, 02/01/14, Callable 02/01/09 @ 107.25 780 793 PSEG Energy Holdings LLC, 10.000%, 10/01/09 250 277 Sierra Pacific Resources, 7.803%, 06/15/12, Callable 06/15/09 @ 103.90 160 168 Sithe/Independence Funding Corp., Ser A, 9.000%, 12/30/13 750 810 Tenaska Alabama Partners LP, 7.000%, 06/30/21 (d) 197 198 -------- 7,743 -------- ENTERTAINMENT (1.6%) Seneca Gaming Corp., Ser B, 7.250%, 05/01/12, Callable 05/01/08 @ 103.63 90 91 Six Flags, Inc., 9.625%, 06/01/14, Callable 06/01/09 @ 104.81 1,095 1,103 -------- 1,194 -------- FOOD (4.2%) Pinnacle Foods Holding Corp., 8.250%, 12/01/13, Callable 12/01/08 @ 104.12 2,125 2,104 Stater Brothers Holdings, Inc., 8.125%, 06/15/12, Callable 06/15/08 @ 104.06 (e) 1,000 999 -------- 3,103 -------- FOREST PRODUCTS & PAPER (3.5%) Appleton Papers, Inc., Ser B, 9.750%, 06/15/14, Callable 06/15/09 @ 104.88 1,950 1,935 Boise Cascade LLC, 7.475%, 10/15/12, Callable 10/15/06 @ 101 (b) 600 608 -------- 2,543 -------- HEALTHCARE -- PRODUCTS (3.4%) Accellent, Inc., 10.500%, 12/01/13, Callable 12/01/09 @ 105.25 940 1,003 Universal Hospital Services, Inc., 10.125%, 11/01/11, Callable 11/01/07 @ 105.06 1,450 1,505 -------- 2,508 --------
- ------------------------------------------------------- Shares or Principal Amount($) Value($) - ------------------------------------------------------- HEALTHCARE -- SERVICES (5.5%) Skilled Healthcare Group, 11.000%, 01/15/14, Callable 01/15/10 @ 105.50 (d) 1,035 1,076 Tenet Healthcare Corp., 9.875%, 07/01/14 1,115 1,129 US Oncology Holdings, Inc., 10.320%, 03/15/15, Callable 03/15/07 @ 102 (b) 735 737 US Oncology, Inc., 10.750%, 08/15/14, Callable 03/15/07 @ 102 1,000 1,093 -------- 4,035 -------- HOUSEHOLD PRODUCTS/WARES (1.4%) Visant Holding Corp., 8.750%, 12/01/13, Callable 12/01/08 @ 106.563 (d) 1,100 1,056 -------- INSURANCE (0.7%) Markel Capital Trust I, Ser B, 8.710%, 01/01/46, Callable 01/01/07 @ 104.36 500 522 -------- LODGING (2.0%) Mandalay Resort Group, Ser B, 10.250%, 08/01/07 250 263 MGM Mirage, Inc., 9.750%, 06/01/07 1,130 1,177 -------- 1,440 -------- MACHINERY DIVERSIFIED (3.9%) Chart Industries, Inc., 9.125%, 10/15/15, Callable 10/15/10 @ 104.56 (d) 1,250 1,291 NMGH Holding Co., 10.000%, 05/15/09, Callable 05/15/06 @ 105 1,500 1,575 -------- 2,866 -------- MEDIA (12.7%) Cablevision Systems Corp., Ser B, 8.000%, 04/15/12 (e) 910 887 CCH I LLC, 11.000%, 10/01/15, Callable 10/01/10 @ 105.50 1,230 1,022 Dex Media, Inc., 9.540%, 11/15/13, Callable 11/15/08 @ 104.50 (c) (g) 915 773 EchoStar DBS Corp., 7.125%, 02/01/16, Callable 10/01/06 @ 100 (d) 565 556 Houghton Mifflin Co., 10.432%, 10/15/13 (c) (e) (g) 1,280 1,091
See Notes to Financial Statements. 66 SCHEDULES OF PORTFOLIO INVESTMENTS STI CLASSIC FUNDS March 31, 2006 (Amounts in thousands, except Shares) HIGH INCOME FUND -- CONTINUED
- ------------------------------------------------------- Shares or Principal Amount($) Value($) - ------------------------------------------------------- <->MEDIA--CONTINUED Kabel Deutschland Gmbh, 10.625%, 07/01/14, Callable 07/01/09 @ 105.31 (d) 1,800 1,921 LIN Television Corp., Ser B, 6.500%, 05/15/13, Callable 05/15/08 @ 103.25 250 235 Mediacom LLC, 9.500%, 01/15/13, Callable 01/15/07 @ 103.167 (e) 500 495 Morris Publishing Group LLC, 7.000%, 08/01/13, Callable 08/01/08 @ 103.50 1,105 1,043 Quebecor Media, Inc., 7.750%, 03/15/16, Callable 03/15/11 @ 103.875 (d) 165 170 Quebecor World Capital Corp., 8.750%, 03/15/16, Callable 03/15/11 @ 104.375 (d) 110 107 Sinclair Broadcast Group, Inc., 8.750%, 12/15/11, Callable 12/15/06 @ 104.375 960 1,009 Sinclair Broadcast Group, Inc., 8.000%, 03/15/12, Callable 03/15/07 @ 104 30 31 -------- 9,340 -------- MISCELLANEOUS MANUFACTURER (2.3%) Clarke American Corp., 11.750%, 12/15/13, Callable 12/15/09 @ 105.88 (d) 1,390 1,414 Koppers, Inc., 9.875%, 10/15/13, Callable 10/15/08 @ 104.94 239 262 -------- 1,676 -------- OIL & GAS (0.6%) Compagnie Gererale de Geophysique SA, 7.500%, 05/15/15, Callable 05/15/10 @ 103.75 150 155 Compton Petroleum Finance Corp., 7.625%, 12/01/13, Callable 12/01/09 @ 103.813 (d) 115 115 Compton Petroleum Finance Corp., 7.625%, 12/01/13, Callable 12/01/09 @ 103.813 155 155 -------- 425 -------- PACKAGING & CONTAINERS (0.8%) Ball Corp., 6.875%, 12/15/12, Callable 12/15/07 @ 103.44 100 102
- ------------------------------------------------------- Shares or Principal Amount($) Value($) - ------------------------------------------------------- <->PACKAGING & CONTAINERS-- CONTINUED Crown Cork & Seal Co., Inc., 7.375%, 12/15/26 500 465 -------- 567 -------- PIPELINES (0.2%) Copano Energy LLC, 8.125%, 03/01/16, Callable 03/01/11 @ 104.0625 (d) 40 41 Targa Resources, Inc., 8.500%, 11/01/13, Callable 11/01/09 @ 104.25 (d) (e) 95 99 -------- 140 -------- REAL ESTATE (1.1%) American Real Estate Partners LP, 7.125%, 02/15/13, Callable 02/15/09 @ 103.56 345 340 CB Richard Ellis Group, Inc., 9.750%, 05/15/10, Callable 05/15/07 @ 104.88 413 447 -------- 787 -------- REITS (0.5%) Host Marriott Corp., Ser G, 9.250%, 10/01/07 315 330 Ventas Realty LP, 6.500%, 06/01/16, Callable 06/01/11 @ 103.25 (d) 55 55 -------- 385 -------- RETAIL (1.3%) Rite Aid Corp., 7.500%, 01/15/15, Callable 01/15/10 @ 103.75 1,000 970 -------- SEMICONDUCTORS (4.4%) Avago Technologies Finance Ltd., 10.320%, 06/01/13, Callable 12/01/07 @ 102 (b) (d) 1,025 1,071 Avago Technologies Finance Ltd., 11.875%, 12/01/15, Callable 12/01/10 @ 105.938 (d) (e) 1,005 1,090 Spansion LLC, 11.250%, 01/15/16, Callable 01/15/11 @ 105.62 (d) 1,080 1,037 -------- 3,198 -------- SOFTWARE (1.5%) SERENA Software, Inc., 10.375%, 03/15/16, Callable 03/15/11 @ 105.188 (d) 1,070 1,124 --------
See Notes to Financial Statements. 67 SCHEDULES OF PORTFOLIO INVESTMENTS STI CLASSIC FUNDS March 31, 2006 (Amounts in thousands, except Shares) HIGH INCOME FUND -- CONCLUDED
- ------------------------------------------------------- Shares or Principal Amount($) Value($) - ------------------------------------------------------- TELECOMMUNICATIONS (4.0%) PanAmSat Holdings Corp., 9.000%, 08/15/14, Callable 08/15/09 @ 104.50 1,600 1,683 Rogers Wireless, Inc., 7.250%, 12/15/12 185 195 Valor Telecommunications Enterprise LLC, 7.750%, 02/15/15, Callable 02/15/10 @ 103.88 1,000 1,048 -------- 2,926 -------- Total Corporate Bonds (Cost $65,339) 66,303 -------- PREFERRED STOCK (1.6%) RETAIL (1.6%) Rite Aid Corp. 50,000 1,153 -------- Total Preferred Stock (Cost $1,255) 1,153 -------- SHORT-TERM INVESTMENTS (13.5%) CSFB Enhanced Liquidity Portfolio, 5.006% (f) 9,887,072 9,887 -------- Total Short-Term Investments (Cost $9,887) 9,887 -------- REPURCHASE AGREEMENT (4.0%) Merrill Lynch & Co., Inc., 4.725%, dated 03/31/06, to be repurchased on 04/03/06, repurchase price $2,910,408 (collateralized by U.S. Government Agencies, 5.500%, due 01/01/35; total market value $2,969,221) 2,909 2,909 -------- Total Repurchase Agreement (Cost $2,909) 2,909 -------- Total Investments (Cost $82,822) (a) -- 114.3% 83,666 Liabilities in excess of other assets -- (14.3)% (10,437) -------- Net Assets -- 100.0% $ 73,229 ========
- --------------- (a)Cost for federal income tax purposes is $82,793 (amount in thousands). Unrealized appreciation/ (depreciation) on a tax basis is as follows (amounts in thousands): Unrealized Appreciation................... $1,434 Unrealized Depreciation................... (562) ------ Unrealized Appreciation (Depreciation).... $ 872 ======
(b)Variable rate security. Rate presented represents rate in effect at March 31, 2006. Maturity date represents actual maturity date. (c)Rate represents the effective yield at purchase. (d)Rule 144A, Section 4(2) or other security which is restricted as to resale to institutional investors. The Fund's advisor has deemed this security to be liquid based upon procedures approved by the Board of Trustees. (e)This security or a partial position of the security was on loan at March 31, 2006. The total value of securities on loan at March 31, 2006 in thousands was $9,422. (f)This security was purchased with cash collateral held from securities lending. (g)Step bond. (h)This security has not settled as of March 31, 2006 and thus does not have a rate in effect. The security does not have a stated settlement date and will receive a rate upon settling with the custodian. LLC -- Limited Liability Corporation LP -- Limited Partnership PLC -- Public Limited Company REIT -- Real Estate Investment Trust Ser -- Series See Notes to Financial Statements. 68 SCHEDULES OF PORTFOLIO INVESTMENTS STI CLASSIC FUNDS March 31, 2006 (Amounts in thousands, except Shares) HIGH QUALITY BOND FUND
- --------------------------------------------------------- Shares or Principal Amount($) Value($) - --------------------------------------------------------- ASSET BACKED SECURITIES (3.1%) AUTOMOBILE ABS (2.0%) Chase Manhattan Auto Owner Trust, Ser 2003-B, Cl A4, 2.570%, 02/16/10 550 538 Daimler Chrysler Auto Trust, Ser 2003-B, Cl A4, 2.860%, 03/09/09 405 397 ------- 935 ------- CREDIT CARD ABS (1.1%) Citibank Credit Card Master Trust I, Ser 1998-2, Cl A, 6.050%, 01/15/10 550 559 ------- Total Asset Backed Securities (Cost $1,498) 1,494 ------- CORPORATE BONDS (14.4%) AEROSPACE/DEFENSE (0.3%) United Technologies Corp., 4.875%, 05/01/15 165 158 ------- BANKS (1.0%) Bank of America Corp., 7.400%, 01/15/11 440 476 ------- BIOTECHNOLOGY (0.6%) Amgen, Inc., 4.000%, 11/18/09 315 301 ------- COSMETICS/PERSONAL CARE (0.5%) Avon Products, Inc., 5.125%, 01/15/11 230 226 ------- DIVERSIFIED FINANCIAL SERVICES (5.8%) American Express Co., 3.750%, 11/20/07 550 538 Caterpillar Financial Services Corp., 4.500%, 06/15/09 290 283 CIT Group, Inc., 5.125%, 09/30/14 195 186 Citigroup, Inc., 5.125%, 05/05/14 310 301 Goldman Sachs Group, Inc. (The), 4.750%, 07/15/13 405 383 Household Finance Corp., 6.375%, 11/27/12 380 394 International Lease Finance Corp., Ser Q, 5.250%, 01/10/13 95 92
- --------------------------------------------------------- Shares or Principal Amount($) Value($) - --------------------------------------------------------- DIVERSIFIED FINANCIAL SERVICES--CONTINUED JPMorgan Chase & Co., 6.625%, 03/15/12 395 415 Morgan Stanley, 5.300%, 03/01/13 320 313 ------- 2,905 ------- ELECTRIC (0.3%) Consolidated Edison Co. of New York, Inc., 4.700%, 06/15/09 145 142 ------- INSURANCE (0.2%) MetLife, Inc., 5.000%, 06/15/15 95 90 ------- INVESTMENT COMPANIES (0.4%) Credit Suisse First Boston USA, Inc., 6.500%, 01/15/12 175 183 ------- MISCELLANEOUS MANUFACTURER (2.2%) General Electric Co., 5.000%, 02/01/13 1,095 1,065 ------- RETAIL (0.5%) Wal-Mart Stores, Inc., 4.550%, 05/01/13 280 266 ------- TELECOMMUNICATIONS (2.6%) AT&T, Inc., 5.100%, 09/15/14 260 247 BellSouth Corp., 5.200%, 09/15/14 135 129 Cisco Systems, Inc., 5.500%, 02/22/16 255 251 France Telecom SA, 7.750%, 03/01/11 95 104 Verizon Global Funding Corp., 7.250%, 12/01/10 255 270 Vodafone Group PLC, 5.500%, 06/15/11 255 253 ------- 1,254 ------- Total Corporate Bonds (Cost $7,279) 7,066 ------- U.S. GOVERNMENT AGENCY MORTGAGES (8.1%) FANNIE MAE (1.1%) 5.725%, 03/01/12 225 227 6.260%, 05/01/12 308 319 ------- 546 -------
See Notes to Financial Statements. 69 SCHEDULES OF PORTFOLIO INVESTMENTS STI CLASSIC FUNDS March 31, 2006 (Amounts in thousands, except Shares) HIGH QUALITY BOND FUND -- CONCLUDED
- --------------------------------------------------------- Shares or Principal Amount($) Value($) - --------------------------------------------------------- GOVERNMENT NATIONAL MORTGAGE ASSOCIATION (7.0%) 6.364%, 10/16/20 (b) 450 456 6.114%, 11/16/21 353 357 4.449%, 03/16/25 352 342 4.212%, 01/16/28 (b) 408 395 3.760%, 09/16/28 447 428 4.241%, 07/16/29 205 198 5.473%, 02/16/31 (b) 400 397 5.269%, 03/16/37 (b) 400 391 4.811%, 06/16/45 447 438 ------- 3,402 ------- Total U.S. Government Agency Mortgages (Cost $4,010) 3,948 ------- U.S. TREASURY OBLIGATIONS (73.3%) U.S. TREASURY INFLATION PROTECTED NOTES/BONDS (5.5%) 1.625%, 01/15/15 2,730 2,676 ------- U.S. TREASURY NOTES (67.8%) 3.125%, 05/15/07 7,820 7,671 5.625%, 05/15/08 2,830 2,874 3.375%, 12/15/08 7,540 7,265 6.000%, 08/15/09 6,555 6,792 4.250%, 10/15/10 5,100 4,981 4.250%, 08/15/13 3,750 3,607 ------- 33,190 ------- Total U.S. Treasury Obligations (Cost $36,655) 35,866 -------
- --------------------------------------------------------- Shares or Principal Amount($) Value($) - --------------------------------------------------------- MONEY MARKET FUNDS (0.4%) Federated Prime Value Money Market Fund 171,979 172 ------- Total Money Market Funds (Cost $172) 172 ------- Total Investments (Cost $49,614) (a) -- 99.3% 48,546 Other assets in excess of liabilities -- 0.7% 362 ------- Net Assets -- 100.0% $48,908 =======
- --------------- (a)Cost for federal income tax purposes is $49,636 (amount in thousands). Unrealized appreciation/(depreciation) on a tax basis is as follows (amounts in thousands): Unrealized Appreciation.................. $ -- Unrealized Depreciation.................. (1,090) ------- Unrealized Appreciation (Depreciation)... $(1,090) =======
(b)Variable rate security. Rate presented represents rate in effect at March 31, 2006. Maturity date represents actual maturity date. Cl -- Class PLC -- Public Limited Company Ser -- Series See Notes to Financial Statements. 70 SCHEDULES OF PORTFOLIO INVESTMENTS STI CLASSIC FUNDS March 31, 2006 (Amounts in thousands, except Shares) INTERMEDIATE BOND FUND
- --------------------------------------------------------- Principal Amount($) Value($) - --------------------------------------------------------- ASSET BACKED SECURITIES (1.0%) AUTOMOBILE ABS (0.8%) Daimler Chrysler Auto Trust, Ser 2005-A, Cl A4, 3.740%, 02/08/10 410 401 Honda Auto Receivables Owner Trust, Ser 2006-1, Cl A3, 5.070%, 02/18/10 265 264 ------- 665 ------- HOME EQUITY ABS (0.2%) Cityscape Home Equity Loan Trust, Ser 1996-3, Cl A8, 7.650%, 09/25/25 11 11 Contimortgage Home Equity Loan Trust, Ser 1996-2, Cl A8, 7.900%, 07/15/27 78 77 Delta Funding Home Equity Loan Trust, Ser 1999-3, Cl A1F, 7.462%, 09/15/29 8 8 New Century Home Equity Loan Trust, Ser 1999-NCB, Cl A7, 7.540%, 06/25/29 6 6 Soundview Home Equity Loan Trust,Ser 2001-1, Cl A, 6.265%, 04/15/31 17 17 ------- 119 ------- Total Asset Backed Securities (Cost $788) 784 ------- COLLATERALIZED MORTGAGE OBLIGATIONS (3.0%) Banc of America Commercial Mortgage, Inc., Ser 2004-4, Cl A3, 4.128%, 07/10/42 355 342 Citigroup/Deutsche Bank Commercial Mortgage Trust, Ser 2005-CD1, Cl A4, 5.225%, 07/15/44 (b) 415 407 Citigroup/Deutsche Bank Commercial Mortgage Trust, Ser 2006-CD2, Cl A4, 5.545%, 01/15/46 275 271 GE Capital Commercial Mortgage Corp., Ser 2006-C1, Cl A4, 5.519%, 03/10/44 (b) 360 355 GS Mortgage Securities Corp. II, Ser 2006-GG6, Cl A2, 5.506%, 04/10/38 (b) 535 537
- --------------------------------------------------------- Principal Amount($) Value($) - --------------------------------------------------------- COLLATERALIZED MORTGAGE OBLIGATIONS--CONTINUED Wachovia Bank Commercial Mortgage Trust, Ser 2006-C23, Cl A4, 5.418%, 01/15/45 (b) 455 448 ------- Total Collateralized Mortgage Obligations (Cost $2,390) 2,360 ------- CORPORATE BONDS (17.0%) AEROSPACE/DEFENSE (0.4%) United Technologies Corp., 4.875%, 05/01/15 315 301 ------- AIRLINES (0.2%) Southwest Airlines Co., 5.125%, 03/01/17 180 167 ------- BANKS (1.1%) Bank of America Corp., 7.400%, 01/15/11 435 470 Wells Fargo & Co., 5.125%, 02/15/07 360 360 ------- 830 ------- COMMERCIAL SERVICES (0.1%) ERAC USA Finance Co., 5.600%, 05/01/15 (c) 120 117 ------- COSMETICS/PERSONAL CARE (0.6%) Avon Products, Inc., 5.125%, 01/15/11 445 437 ------- DIVERSIFIED FINANCIAL SERVICES (6.3%) CIT Group, Inc., 5.125%, 09/30/14 335 320 Citigroup, Inc., 5.125%, 05/05/14 370 359 Fund American Cos., Inc., 5.875%, 05/15/13 440 432 General Electric Capital Corp., 4.250%, 01/15/08 950 934 Goldman Sachs Group, Inc. (The), 4.750%, 07/15/13 400 378 Household Finance Corp., 4.125%, 12/15/08 735 713 International Lease Finance Corp., Ser Q, 5.250%, 01/10/13 175 170 John Deere Capital Corp., 3.900%, 01/15/08 115 112 JPMorgan Chase & Co., 6.625%, 03/15/12 425 447 Lazard Group LLC, 7.125%, 05/15/15 545 566
See Notes to Financial Statements. 71 SCHEDULES OF PORTFOLIO INVESTMENTS STI CLASSIC FUNDS March 31, 2006 (Amounts in thousands, except Shares) INTERMEDIATE BOND FUND -- CONTINUED
- --------------------------------------------------------- Principal Amount($) Value($) - --------------------------------------------------------- DIVERSIFIED FINANCIAL SERVICES--CONTINUED Morgan Stanley, 5.300%, 03/01/13 420 411 SLM Corp., 5.625%, 04/10/07 115 115 ------- 4,957 ------- ELECTRIC (1.1%) Carolina Power & Light, Inc., 5.250%, 12/15/15 390 377 Exelon Corp., 4.900%, 06/15/15 495 460 Northern States Power Co., 2.875%, 08/01/06 60 60 ------- 897 ------- ENTERTAINMENT (0.1%) GTECH Holdings Corp., 4.750%, 10/15/10 115 112 ------- INSURANCE (0.2%) MetLife, Inc., 5.000%, 06/15/15 165 157 ------- INVESTMENT COMPANIES (0.3%) Credit Suisse First Boston USA, Inc., 6.500%, 01/15/12 215 225 ------- MEDIA (0.6%) News America Holdings, Inc., 9.250%, 02/01/13 295 348 Time Warner, Inc., 9.125%, 01/15/13 95 110 ------- 458 ------- MISCELLANEOUS MANUFACTURER (0.3%) General Electric Co., 5.000%, 02/01/13 245 238 ------- OIL & GAS (0.4%) Enterprise Products Operating LP, Ser B, 5.600%, 10/15/14 325 315 ------- PHARMACEUTICALS (0.2%) Teva Pharmaceutical Finance LLC, 5.550%, 02/01/16 125 121 ------- PIPELINES (0.7%) Centerpoint Energy Resources Corp., Ser B, 7.875%, 04/01/13 295 329 Kinder Morgan, Inc., 5.700%, 01/05/16 260 253 ------- 582 ------- RETAIL (1.0%) Federated Department Stores, 7.450%, 07/15/17 70 78
- --------------------------------------------------------- Principal Amount($) Value($) - --------------------------------------------------------- RETAIL--CONTINUED Woolworths Ltd., 5.550%, 11/15/15 (c) 720 702 ------- 780 ------- TELECOMMUNICATIONS (3.4%) AT&T, Inc., 5.100%, 09/15/14 350 332 BellSouth Corp., 5.200%, 09/15/14 250 239 Cisco Systems, Inc., 5.500%, 02/22/16 425 419 Comcast Corp., 4.950%, 06/15/16 365 333 Telecom Italia Capital SA, 5.250%, 10/01/15 405 377 Verizon Global Funding Corp., 7.250%, 12/01/10 355 377 Vodafone Group PLC, 5.500%, 06/15/11 560 554 ------- 2,631 ------- Total Corporate Bonds (Cost $13,680) 13,325 ------- U.S. GOVERNMENT AGENCY MORTGAGES (0.0%) FREDDIE MAC (0.0%) 6.500%, 08/01/08 29 29 ------- Total U.S. Government Agency Mortgages (Cost $30) 29 ------- U.S. TREASURY OBLIGATIONS (77.7%) U.S. TREASURY INFLATION PROTECTED NOTES/BONDS (4.9%) 1.625%, 01/15/15 3,895 3,817 ------- U.S. TREASURY NOTES (72.8%) 2.250%, 04/30/06 785 783 3.125%, 05/15/07 8,795 8,628 4.625%, 02/29/08 4,480 4,462 5.625%, 05/15/08 8,760 8,897 3.375%, 12/15/08 8,915 8,591 4.500%, 02/15/09 140 139 6.000%, 08/15/09 7,510 7,781 4.250%, 10/15/10 6,800 6,641 4.500%, 02/28/11 5,355 5,277 4.375%, 08/15/12 50 49 4.250%, 08/15/13 5,825 5,602 4.500%, 02/15/16 50 49 ------- 56,899 ------- Total U.S. Treasury Obligations (Cost $61,777) 60,716 -------
See Notes to Financial Statements. 72 SCHEDULES OF PORTFOLIO INVESTMENTS STI CLASSIC FUNDS March 31, 2006 (Amounts in thousands, except Shares) INTERMEDIATE BOND FUND -- CONCLUDED
- --------------------------------------------------------- Principal Amount($) Value($) - --------------------------------------------------------- REPURCHASE AGREEMENT (2.5%) Lehman Brothers, Inc., 4.755%, dated 03/31/06, to be repurchased on 04/03/06, repurchase price $1,961,557 (collateralized by U.S. Government Agencies, DN, due 12/01/34; total market value $2,001,955) 1,961 1,961 ------- Total Repurchase Agreement (Cost $1,961) 1,961 ------- Total Investments (Cost $80,626) (a) -- 101.2% 79,175 Liabilities in excess of other assets -- (1.2)% (916) ------- Net Assets -- 100.0% $78,259 =======
- --------------- (a)Cost for federal income tax purposes is $80,740 (amount in thousands). Unrealized appreciation/ (depreciation) on a tax basis is as follows (amounts in thousands): Unrealized Appreciation.................. $ 30 Unrealized Depreciation.................. (1,595) ------- Unrealized Appreciation (Depreciation)... $(1,565) =======
(b)Variable rate security. Rate presented represents rate in effect at March 31, 2006. Maturity date represents actual maturity date. (c)Rule 144A, Section 4(2) or other security which is restricted as to resale to institutional investors. The Fund's advisor has deemed this security to be liquid based upon procedures approved by the Board of Trustees. Cl -- Class DN -- Discount Note LLC -- Limited Liability Corporation LP -- Limited Partnership PLC -- Public Limited Company Ser -- Series See Notes to Financial Statements. 73 SCHEDULES OF PORTFOLIO INVESTMENTS STI CLASSIC FUNDS March 31, 2006 (Amounts in thousands, except Shares) INVESTMENT GRADE BOND FUND
- ------------------------------------------------------- Shares or Principal Amount($) Value($) - ------------------------------------------------------- ASSET BACKED SECURITIES (1.0%) AUTOMOBILE ABS (0.8%) Daimler Chrysler Auto Trust, Ser 2005-A, Cl A4, 3.740%, 02/08/10 2,700 2,633 Honda Auto Receivables Owner Trust, Ser 2006-1, Cl A3, 5.070%, 02/18/10 1,765 1,760 --------- 4,393 --------- CREDIT CARD ABS (0.2%) Citibank Credit Card Issuance Trust, Ser 2008-A7, Cl A7, 4.150%, 07/07/17 1,000 915 --------- Total Asset Backed Securities (Cost $5,314) 5,308 --------- COLLATERALIZED MORTGAGE OBLIGATIONS (3.1%) Banc of America Commercial Mortgage, Inc., Ser 2004-4, Cl A3, 4.128%, 07/10/42 2,375 2,289 Citigroup/Deutsche Bank Commercial Mortgage Trust, Ser 2005-CD1, Cl A4, 5.225%, 07/15/44 (b) 2,995 2,936 Citigroup/Deutsche Bank Commercial Mortgage Trust, Ser 2006-CD2, Cl A4, 5.545%, 01/15/46 1,785 1,761 GE Capital Commercial Mortgage Corp., Ser 2006-C1, Cl A4, 5.519%, 03/10/44 (b) 2,450 2,417 GS Mortgage Securities Corp. II, Ser 2006-GG6, Cl A2, 5.506%, 04/10/38 (b) 3,650 3,657 Wachovia Bank Commercial Mortgage Trust, Ser 2006-C23, Cl A4, 5.418%, 01/15/45 (b) 2,985 2,942 --------- Total Collateralized Mortgage Obligations (Cost $16,205) 16,002 ---------
- ------------------------------------------------------- Shares or Principal Amount($) Value($) - ------------------------------------------------------- CORPORATE BONDS (18.2%) AEROSPACE/DEFENSE (0.4%) United Technologies Corp., 4.875%, 05/01/15 2,160 2,063 --------- AIRLINES (0.2%) Southwest Airlines Co., 5.125%, 03/01/17 (d) 1,255 1,163 --------- BANKS (0.6%) Bank of America Corp., 7.400%, 01/15/11 2,740 2,961 --------- COMMERCIAL SERVICES (0.2%) ERAC USA Finance Co., 5.600%, 05/01/15 (c) 1,130 1,101 --------- COSMETICS/PERSONAL CARE (0.7%) Avon Products, Inc., 5.125%, 01/15/11 3,470 3,409 --------- DIVERSIFIED FINANCIAL SERVICES (4.7%) CIT Group, Inc., 5.125%, 09/30/14 2,200 2,103 Citigroup, Inc., 5.125%, 05/05/14 1,100 1,068 Citigroup, Inc., 5.850%, 12/11/34 965 948 Fund American Cos., Inc., 5.875%,05/15/13 3,085 3,031 Goldman Sachs Group, Inc. (The), 4.750%, 07/15/13 3,355 3,170 HSBC Holdings PLC, 7.625%, 05/17/32 1,270 1,504 International Lease Finance Corp., Ser Q, 5.250%, 01/10/13 1,220 1,186 John Deere Capital Corp., 3.900%, 01/15/08 640 625 JPMorgan Chase & Co., 6.625%, 03/15/12 3,735 3,925 Lazard Group LLC, 7.125%, 05/15/15 4,005 4,160 Morgan Stanley, 5.300%, 03/01/13 2,690 2,631 --------- 24,351 ---------
See Notes to Financial Statements. 74 SCHEDULES OF PORTFOLIO INVESTMENTS STI CLASSIC FUNDS March 31, 2006 (Amounts in thousands, except Shares) INVESTMENT GRADE BOND FUND -- CONTINUED
- ------------------------------------------------------- Shares or Principal Amount($) Value($) - ------------------------------------------------------- ELECTRIC (1.3%) Exelon Corp., 4.900%, 06/15/15 2,385 2,215 Exelon Corp., 5.625%, 06/15/35 (d) 2,340 2,124 Pacific Gas & Electric Co., 6.050%, 03/01/34 (d) 2,350 2,300 --------- 6,639 --------- ENTERTAINMENT (0.2%) GTECH Holdings Corp., 4.750%, 10/15/10 1,065 1,036 --------- INSURANCE (0.1%) Metlife, Inc., 5.700%, 06/15/35 520 490 --------- INVESTMENT COMPANIES (0.3%) Credit Suisse First Boston USA, Inc., 6.500%, 01/15/12 1,255 1,311 --------- MEDIA (0.7%) Cox Communications, Inc., 4.625%, 06/01/13 (d) 1,425 1,298 News America Holdings, Inc., 6.200%, 12/15/34 1,215 1,138 Time Warner, Inc., 7.625%, 04/15/31 1,220 1,329 --------- 3,765 --------- MINING (0.2%) Alcan, Inc., 5.750%, 06/01/35 1,120 1,042 --------- MISCELLANEOUS MANUFACTURER (1.1%) General Electric Co., 5.000%, 02/01/13 6,030 5,865 --------- OIL & GAS (0.6%) Devon Financing Corp. ULC, 7.875%, 09/30/31 1,595 1,926 Enterprise Products Operating LP, Ser B, 5.750%, 03/01/35 1,350 1,201 --------- 3,127 --------- PHARMACEUTICALS (0.3%) Teva Pharmaceutical Finance LLC, 5.550%, 02/01/16 885 854
- ------------------------------------------------------- Shares or Principal Amount($) Value($) - ------------------------------------------------------- PHARMACEUTICALS--CONTINUED Teva Pharmaceutical Finance LLC, 6.150%, 02/01/36 575 542 --------- 1,396 --------- PIPELINES (0.8%) Centerpoint Energy Resources Corp., Ser B, 7.875%, 04/01/13 1,540 1,716 Kinder Morgan, Inc., 6.400%, 01/05/36 2,335 2,273 --------- 3,989 --------- REITS (0.1%) Simon Property Group LP, 6.375%, 11/15/07 595 604 --------- RETAIL (1.1%) Federated Department Stores, Inc., 6.900%, 04/01/29 515 535 Woolworths Ltd., 5.550%, 11/15/15 (c) 5,260 5,129 --------- 5,664 --------- TELECOMMUNICATIONS (4.6%) AT&T, Inc., 5.100%, 09/15/14 5,305 5,034 BellSouth Corp., 5.200%, 09/15/14 (d) 4,020 3,845 Cisco Systems, Inc., 5.500%, 02/22/16 3,150 3,103 Comcast Corp., 4.950%, 06/15/16 2,190 1,996 Comcast Corp., 6.450%, 03/15/37 1,460 1,405 Telecom Italia Capital SA, 5.250%, 10/01/15 3,305 3,075 Verizon Communications, Inc., 5.850%, 09/15/35 1,335 1,197 Vodafone Group PLC, 5.500%, 06/15/11 4,095 4,057 --------- 23,712 --------- Total Corporate Bonds (Cost $96,294) 93,688 ---------
See Notes to Financial Statements. 75 SCHEDULES OF PORTFOLIO INVESTMENTS STI CLASSIC FUNDS March 31, 2006 (Amounts in thousands, except Shares) INVESTMENT GRADE BOND FUND -- CONTINUED
- ------------------------------------------------------- Shares or Principal Amount($) Value($) - ------------------------------------------------------- U.S. GOVERNMENT AGENCIES (5.2%) FANNIE MAE (1.7%) 3.250%, 02/15/09 1,000 951 3.800%, 07/14/10, Callable 05/01/06 @ 100 500 474 5.125%, 01/02/14 500 489 5.500%, 11/08/16, Callable 11/08/06 @ 100 1,250 1,217 6.250%, 02/28/17, Callable 02/28/07 @ 100 600 598 6.200%, 06/13/17, Callable 06/13/07 @ 100 1,000 1,005 5.750%, 11/07/17, Callable 05/07/06 @ 100 2,500 2,441 5.100%, 06/26/18, Callable 05/01/06 @ 100 1,500 1,412 5.500%, 04/23/24, Callable 05/01/06 @ 100 250 234 --------- 8,821 --------- FEDERAL HOME LOAN BANK (1.5%) 3.489%, 03/03/08 (b) 2,500 2,501 3.790%, 03/24/08, Callable 06/24/06 @ 100 (b) 2,000 1,983 4.400%, 03/30/11, Callable 04/24/06 @ 100 1,000 961 5.250%, 12/10/13, Callable 06/10/06 @ 100 1,250 1,219 5.000%, 05/08/18, Callable 05/08/06 @ 100 1,000 961 --------- 7,625 --------- FREDDIE MAC (2.0%) 4.050%, 11/17/09 700 675 6.250%, 06/25/10, Callable 06/25/07 @ 100 1,000 1,012 4.650%, 08/27/10, Callable 08/27/06 @ 100 500 488 4.500%, 12/16/10 1,000 972 6.375%, 08/01/11, Callable 08/01/06 @ 100 3,000 3,003 4.650%, 10/10/13, Callable 10/10/06 @ 100 1,000 950 6.000%, 06/27/17, Callable 06/27/07 @ 100 1,000 1,002
- ------------------------------------------------------- Shares or Principal Amount($) Value($) - ------------------------------------------------------- FREDDIE MAC--CONTINUED 5.550%, 10/30/17, Callable 04/24/06 @ 100 1,000 959 5.200%, 03/05/19, Callable 03/05/09 @ 100 1,200 1,139 --------- 10,200 --------- Total U.S. Government Agencies (Cost $27,234) 26,646 --------- U.S. GOVERNMENT AGENCY MORTGAGES (0.1%) FREDDIE MAC (0.0%) 7.000%, 05/01/07 8 8 --------- GOVERNMENT NATIONAL MORTGAGE ASSOCIATION (0.1%) 7.000%, 04/15/13 269 278 7.000%, 08/15/14 162 168 7.000%, 05/15/31 72 75 --------- 521 --------- Total U.S. Government Agency Mortgages (Cost $512) 529 --------- U.S. TREASURY OBLIGATIONS (71.2%) U.S. TREASURY BONDS (9.0%) 4.500%, 02/15/36 (d) 49,150 46,117 --------- U.S. TREASURY INFLATION PROTECTED NOTES/BONDS (5.5%) 1.625%, 01/15/15 28,875 28,299 --------- U.S. TREASURY NOTES (56.7%) 2.250%, 04/30/06 12,925 12,900 3.125%, 05/15/07 (d) 52,555 51,556 4.625%, 02/29/08 (d) 31,620 31,493 5.625%, 05/15/08 (d) 36,240 36,808 3.375%, 12/15/08 (d) 36,920 35,577 4.500%, 02/15/09 (d) 4,505 4,466 6.000%, 08/15/09 (d) 28,040 29,053 4.250%, 10/15/10 (d) 36,550 35,696 4.500%, 02/28/11 (d) 28,575 28,159 4.250%, 08/15/13 (d) 26,040 25,045 --------- 290,753 --------- Total U.S. Treasury Obligations (Cost $373,235) 365,169 ---------
See Notes to Financial Statements. 76 SCHEDULES OF PORTFOLIO INVESTMENTS STI CLASSIC FUNDS March 31, 2006 (Amounts in thousands, except Shares) INVESTMENT GRADE BOND FUND -- CONCLUDED
- ------------------------------------------------------- Shares or Principal Amount($) Value($) - ------------------------------------------------------- SHORT-TERM INVESTMENTS (47.3%) CSFB Enhanced Liquidity Portfolio, 5.006% (e) 243,190,865 243,191 --------- Total Short-Term Investments (Cost $243,191) 243,191 --------- REPURCHASE AGREEMENT (1.4%) Morgan Stanley, 4.705%, dated 03/31/06, to be repurchased on 04/03/06, repurchase price $7,223,970 (collateralized by U.S. Government Agencies; 4.581%-6.500%, 08/01/30-08/01/35; total market value $7,463,433) 7,221 7,221 --------- Total Repurchase Agreement (Cost $7,221) 7,221 --------- Total Investments (Cost $769,206) (a) -- 147.5% 757,754 Liabilities in excess of other assets -- (47.5)% (243,940) --------- Net Assets -- 100.0% $ 513,814 =========
- --------------- (a)Cost for federal income tax purposes is $768,985 (amount in thousands). Unrealized appreciation/(depreciation) on a tax basis is as follows (amounts in thousands): Unrealized Appreciation................. $ 492 Unrealized Depreciation................. (11,722) -------- Unrealized Appreciation (Depreciation)........................ $(11,230) ========
(b)Variable rate security. Rate presented represents rate in effect at March 31, 2006. Maturity date represents actual maturity date. (c)Rule 144A, Section 4(2) or other security which is restricted as to resale to institutional investors. The Fund's advisor has deemed this security to be liquid based upon procedures approved by the Board of Trustees. (d)This security or a partial position of the security was on loan at March 31, 2006. The total value of securities on loan at March 31, 2006 in thousands was $235,428. (e)This security was purchased with cash collateral held from securities lending. Cl -- Class LLC -- Limited Liability Corporation LP -- Limited Partnership PLC -- Public Limited Company REIT -- Real Estate Investment Trust Ser -- Series See Notes to Financial Statements. 77 SCHEDULES OF PORTFOLIO INVESTMENTS STI CLASSIC FUNDS March 31, 2006 (Amounts in thousands, except Shares) INVESTMENT GRADE TAX-EXEMPT BOND FUND
- ------------------------------------------------------- Shares or Principal Amount($) Value($) - ------------------------------------------------------- MUNICIPAL BONDS (95.1%) ALABAMA (6.1%) Alabama Public School & College Authority, Capital Improvements, Ser C, RB, 5.750%, 07/01/17, Callable 07/01/09 @ 101.50 3,950 4,231 Alabama Water Pollution Control Authority, RB, 5.750%, 08/15/12, Callable 08/15/09 @ 100, AMBAC 5,205 5,524 Auburn University, Ser A, RB, 6.000%, 06/01/16, Callable 06/01/11 @ 100, MBIA 4,060 4,457 Huntsville, Ser A, GO, 5.625%, 05/01/16, Callable 05/01/12 @ 102 2,375 2,618 Huntsville, Ser A, GO, 5.750%, 05/01/19, Callable 05/01/12 @ 102 2,800 3,113 -------- 19,943 -------- ARIZONA (1.1%) Arizona Water Infrastructure Finance Authority, Water Quality, Ser A, RB, 5.625%, 10/01/12, Callable 10/01/09 @ 101 3,280 3,503 -------- CALIFORNIA (6.4%) California State Department of Water Resources, Power Supply, Ser A, RB, 5.750%, 05/01/17, Prerefunded 05/01/12 @ 101 5,200 5,809 California State, GO, 5.500%, 11/01/33, Callable 11/01/13 @ 100 11,000 11,939 Fresno Unified School District, Ser A, GO, 6.550%, 08/01/20, Callable 02/01/13 @ 103, MBIA 1,000 1,181 Orange County Loma Ridge/Data Center Project, COP, 6.000%, 06/01/21, Prerefunded 06/01/19 @ 100, AMBAC 2,075 2,393 -------- 21,322 --------
- ------------------------------------------------------- Shares or Principal Amount($) Value($) - ------------------------------------------------------- COLORADO (1.7%) Douglas County School District No. RE1, Douglas & Ebert Counties, GO, 5.750%, 12/15/20, Callable 12/15/14 @ 100, FGIC 2,540 2,834 Metro Wastewater Reclamation District, RB, 5.450%, 04/01/12, Callable 04/01/08 @ 100 2,570 2,653 -------- 5,487 -------- CONNECTICUT (3.2%) Connecticut State, Ser E, GO, 5.500%, 11/15/13, Callable 11/15/12 @ 100 9,500 10,358 -------- FLORIDA (1.6%) Charlotte County Utilities, Ser B, RB, 3.180%, 10/01/21, FSA (b) 1,000 1,000 Florida State Board of Education, Ser B, RB, 6.000%, 07/01/14, Prerefunded 07/01/10 @ 101 2,795 3,069 Lee County Transportation Facility Authority, Ser A, RB, 5.000%, 10/01/27, Callable 10/01/14 @ 100, AMBAC 1,000 1,042 -------- 5,111 -------- GEORGIA (1.5%) Georgia State, Ser D, GO, 5.000%, 11/01/12, Callable 11/01/11 @ 100 4,500 4,769 -------- ILLINOIS (1.1%) Illinois State Sales Tax, Ser X, RB, 5.500%, 06/15/13, Callable 06/15/07 @ 101 3,390 3,490 -------- IOWA (0.7%) Des Moines Public Parking System, Ser A, RB, 6.375%, 06/01/18, Callable 06/01/10 @ 100, FGIC 2,005 2,206 --------
See Notes to Financial Statements. 78 SCHEDULES OF PORTFOLIO INVESTMENTS STI CLASSIC FUNDS March 31, 2006 (Amounts in thousands, except Shares) INVESTMENT GRADE TAX-EXEMPT BOND FUND -- CONTINUED
- ------------------------------------------------------- Shares or Principal Amount($) Value($) - ------------------------------------------------------- KANSAS (1.7%) Johnson County Unified School District No. 229, Ser A, GO, 5.000%, 10/01/09 5,455 5,691 -------- MARYLAND (3.3%) Maryland State, State & Local Facilities, First Series, GO, 5.500%, 03/01/10 10,000 10,679 -------- MASSACHUSETTS (1.6%) Boston, Ser A, GO, 5.000%, 01/01/10 5,095 5,332 -------- MICHIGAN (1.1%) Michigan Municipal Bond Authority, Clean Water State Revolving Fund, RB, 5.375%, 10/01/17, Callable 10/01/12 @ 100 3,300 3,553 -------- MINNESOTA (1.3%) Minnesota State, GO, 5.250%, 11/01/10 4,000 4,265 -------- MISSOURI (2.9%) Missouri State Highways & Transit Commission, Ser A, RB, 5.625%, 02/01/18, Callable 02/01/11 @ 100 8,885 9,546 -------- NEW JERSEY (4.5%) Garden State Preservation Trust, Open Space & Farmland Preservation, Ser A, RB, 5.800%, 11/01/19, Callable 11/01/15 @ 100 3,000 3,412 Garden State Preservation Trust, Open Space & Farmland Preservation, Ser A, RB, 5.800%, 11/01/20, Callable 11/01/15 @ 100, FSA 10,000 11,364 -------- 14,776 -------- NEW YORK (17.5%) Buffalo School Improvements, Ser D, GO, 5.500%, 12/15/14, Callable 12/15/11 @ 100, FGIC 1,075 1,161
- ------------------------------------------------------- Shares or Principal Amount($) Value($) - ------------------------------------------------------- NEW YORK--CONTINUED New York City Transitional Finance Authority, Future Secured Tax, Ser A-1, RB, 5.000%, 11/01/09 2,975 3,107 New York City, Ser A, GO, 6.250%, 08/01/08, Callable 08/01/06 @ 101.5, MBIA 11,000 11,251 New York Counties Tobacco Trust I, Tobacco Settlement, Ser B, RB, 6.625%, 06/01/42, Prerefunded 06/01/10 @ 101 15,800 17,699 New York Local Government Assistance Corp., Ser A-2, RB, 5.000%, 04/01/10 3,000 3,144 Tobacco Settlement Financing Corp., Ser A1, RB, 5.000%, 06/01/10, Callable 06/01/06 @ 100 35 35 Tobacco Settlement Financing Corp., Ser A1, RB, 5.250%, 06/01/13, Callable 06/01/08 @ 100 10,000 10,309 Tobacco Settlement Financing Corp., Ser A1, RB, 5.500%, 06/01/14, Callable 06/01/09 @ 100 3,750 3,930 Tobacco Settlement Financing Corp., Ser C1, RB, 5.250%, 06/01/12, Callable 06/01/07 @ 100 6,720 6,841 -------- 57,477 -------- NORTH CAROLINA (3.9%) North Carolina State, Public Improvement, Ser A, GO, 5.000%, 03/01/10 2,160 2,267 North Carolina State, Public Improvement, Ser A, GO, 5.000%, 03/01/10 10,000 10,494 -------- 12,761 -------- OHIO (6.0%) Columbus, Public Improvement, Ser D, GO, 5.000%, 12/15/10 3,290 3,477
See Notes to Financial Statements. 79 SCHEDULES OF PORTFOLIO INVESTMENTS STI CLASSIC FUNDS March 31, 2006 (Amounts in thousands, except Shares) INVESTMENT GRADE TAX-EXEMPT BOND FUND -- CONTINUED
- ------------------------------------------------------- Shares or Principal Amount($) Value($) - ------------------------------------------------------- OHIO--CONTINUED Ohio State Water Development Authority, Fresh Water Improvement Project, RB, 5.700%, 06/01/08, Callable 06/01/06 @ 101, AMBAC 1,520 1,552 Ohio State Water Development Authority, Water Pollution Control, RB, 5.000%, 12/01/11 13,785 14,652 -------- 19,681 -------- PENNSYLVANIA (4.1%) Pennsylvania State Turnpike Commission, Registration Fee, RB, 5.375%, 07/15/14, Callable 07/15/11 @ 101, AMBAC 2,000 2,173 Pennsylvania State Turnpike Commission, Ser T, RB, 5.500%, 12/01/10 5,515 5,939 Pennsylvania State, Second Series, GO, 5.000%, 07/01/10, MBIA 5,000 5,255 -------- 13,367 -------- PUERTO RICO (8.5%) Puerto Rico Commonwealth Electric Power Authority, Ser RR, RB, 5.000%, 07/01/23, Callable 07/01/15 @ 100, FGIC 6,500 6,864 Puerto Rico Commonwealth Government Development Bank, RB, 3.050%, 12/01/15, MBIA (b) 3,000 3,000 Puerto Rico Commonwealth Highway & Transportation Authority, RB, 5.250%, 07/01/15, Callable 07/01/13 @ 100, FGIC 5,000 5,404 Puerto Rico Commonwealth Highway & Transportation Authority, RB, 5.250%, 07/01/17, Callable 07/01/13 @ 100, FGIC 5,260 5,660
- ------------------------------------------------------- Shares or Principal Amount($) Value($) - ------------------------------------------------------- PUERTO RICO--CONTINUED Puerto Rico Commonwealth Highway & Transportation Authority, Ser G, RB, 5.250%, 07/01/15, Callable 07/01/13 @ 100, FGIC 2,720 2,940 Puerto Rico Commonwealth Municipal Finance Agency, Ser A, RB, 5.250%, 08/01/14, Callable 08/01/12 @ 100, FSA 4,000 4,301 -------- 28,169 -------- TENNESSEE (1.0%) Shelby County, Public Improvement, Ser A, GO, 5.000%, 03/01/10, FSA 3,000 3,142 -------- TEXAS (10.3%) Irving Waterworks & Sewer, RB, 5.950%, 06/15/19, Callable 06/15/09 @ 100.50 1,460 1,560 Lancaster Independent School District, GO, 5.000%, 02/15/34, Callable 02/15/16 @ 100, FSA 8,555 8,825 North Harris County Regional Water Authority, RB, 5.250%, 12/15/18, Callable 12/15/14 @ 100, MBIA 2,690 2,896 Richardson Texas, GO, 5.250%, 02/15/17, Callable 02/15/15 @ 100, MBIA 2,665 2,862 Texas State, TAN & RAN, GO, 4.500%, 08/31/06 17,750 17,815 -------- 33,958 -------- VIRGINIA (2.2%) Fairfax County, Public Improvement, Ser A, GO, 5.000%, 10/01/09, LOC: State Aid Withholding 6,755 7,063 -------- WASHINGTON (1.8%) Washington State, Motor Vehicle Fuel Tax, Ser E, 5.000%, 01/01/08, AMBAC 5,870 6,007 -------- Total Municipal Bonds (Cost $311,866) 311,656 --------
See Notes to Financial Statements. 80 SCHEDULES OF PORTFOLIO INVESTMENTS STI CLASSIC FUNDS March 31, 2006 (Amounts in thousands, except Shares) INVESTMENT GRADE TAX-EXEMPT BOND FUND -- CONCLUDED
- ------------------------------------------------------- Shares or Principal Amount($) Value($) - ------------------------------------------------------- MONEY MARKET FUNDS (6.1%) Federated Tax-Free Obligations Fund 14,239,039 14,239 SEI Tax Exempt Trust, Institutional Tax Free Fund 5,583,965 5,584 -------- Total Money Market Funds (Cost $19,823) 19,823 -------- Total Investments (Cost $331,689) (a) -- 101.2% 331,479 Liabilities in excess of other assets -- (1.2)% (4,027) -------- Net Assets -- 100.0% $327,452 ========
- --------------- (a)Cost for federal income tax and financial reporting purposes is the same. Unrealized appreciation/(depreciation) is as follows (amounts in thousands): Unrealized Appreciation.................. $ 1,832 Unrealized Depreciation.................. (2,042) ------- Unrealized Appreciation (Depreciation)... $ (210) =======
(b)Variable rate security. Rate presented represents rate in effect at March 31, 2006. Maturity date represents actual maturity date. AMBAC -- Security insured by the American Municipal Bond Assurance Corporation COP -- Certificate of Participation FGIC -- Security insured by the Financial Guaranty Insurance Company FSA -- Security insured by Financial Security Assurance GO -- General Obligation LOC -- Line of Credit MBIA -- Security insured by the Municipal Bond Insurance Association RAN -- Revenue Anticipation Note RB -- Revenue Bond Ser -- Series TAN -- Tax Anticipation Note See Notes to Financial Statements. 81 SCHEDULES OF PORTFOLIO INVESTMENTS STI CLASSIC FUNDS March 31, 2006 (Amounts in thousands, except Shares) LIMITED DURATION FUND
- --------------------------------------------------------- Principal Amount($) Value($) - --------------------------------------------------------- ASSET BACKED SECURITIES (24.6%) AUTOMOBILE ABS (0.4%) WFS Financial Owner Trust, Ser 2005-1, Cl A2, 3.190%, 12/17/07 264 263 ------- CREDIT CARD ABS (17.3%) American Express Credit Account Master Trust, Ser 2003-3, Cl A, 4.859%, 11/15/10 (b) 1,200 1,202 BA Master Credit Card Trust, Ser 2001, Cl A, 4.869%, 06/15/08 (b) 2,250 2,250 Chase Issuance Trust, Ser 2005- A1, Cl A1, 4.759%, 12/15/10 (b) 2,200 2,200 First USA Credit Card Master Trust, Ser 1997-8, Cl A, 4.903%, 05/17/10 (b) 2,266 2,271 MBNA Credit Card Master Trust, Ser 2002-A13, Cl A, 4.879%, 05/17/10 (b) 2,250 2,255 ------- 10,178 ------- DIVERSIFIED FINANCIAL SERVICES (1.7%) SLM Student Loan Trust, Ser 2004-8, Cl A3, 4.713%, 07/27/15 (b) 1,022 1,024 ------- FANNIE MAE (2.4%) Guarantor Trust, Ser 2002-T10, Cl A1, 4.940%, 06/25/32 (b) 1,412 1,412 ------- FREDDIE MAC (1.1%) Structured Pass Thru Securities, Ser T-49, Cl AV, 4.968%, 12/25/32 (b) 619 619 ------- HOME EQUITY ABS (1.7%) Countywide Home Equity Loan Trust, Ser 2006-C, Cl 2A, 5.041%, 05/15/36 (b) 992 992 ------- Total Asset Backed Securities (Cost $14,492) 14,488 ------- U.S. GOVERNMENT AGENCIES (8.5%) FREDDIE MAC (8.5%) 2.375%, 04/15/06 5,000 4,996 ------- Total U.S. Government Agencies (Cost $4,996) 4,996 -------
- --------------------------------------------------------- Principal Amount($) Value($) - --------------------------------------------------------- U.S. TREASURY OBLIGATIONS (62.5%) U.S. TREASURY NOTES (62.5%) 2.250%, 04/30/06 7,000 6,986 4.625%, 05/15/06 7,000 6,999 6.875%, 05/15/06 7,000 7,016 2.500%, 05/31/06 7,000 6,976 2.750%, 06/30/06 2,850 2,837 7.000%, 07/15/06 6,000 6,036 ------- Total U.S. Treasury Obligations (Cost $36,858) 36,850 ------- REPURCHASE AGREEMENT (3.4%) Lehman Brothers, Inc., 4.755%, dated 03/31/06, to be repurchased on 04/03/06, repurchase price $1,991,820 (collateralized by U.S. Government Agencies; DN, 12/01/34; total market value $2,033,414) 1,991 1,991 ------- Total Repurchase Agreement (Cost $1,991) 1,991 ------- Total Investments (Cost $58,337) (a) -- 99.0% 58,325 Other assets in excess of liabilities -- 1.0% 562 ------- Net Assets -- 100.0% $58,887 =======
- --------------- (a) Cost for federal income tax purposes is $58,338 (amount in thousands). Unrealized appreciation/(depreciation) on a tax basis is as follows (amounts in thousands): Unrealized Appreciation.................... $ 2 Unrealized Depreciation.................... (15) ---- Unrealized Appreciation (Depreciation)..... $(13) ====
(b) Variable rate security. Rate presented represents rate in effect at March 31, 2006. Maturity date represents actual maturity date. Cl -- Class DN -- Discount Note Ser -- Series See Notes to Financial Statements. 82 SCHEDULES OF PORTFOLIO INVESTMENTS STI CLASSIC FUNDS March 31, 2006 (Amounts in thousands, except Shares) LIMITED-TERM FEDERAL MORTGAGE SECURITIES FUND
- ------------------------------------------------------- Shares or Principal Amount($) Value($) - ------------------------------------------------------- U.S. GOVERNMENT AGENCIES (8.3%) FANNIE MAE (3.3%) 5.250%, 06/15/06 (c) 13,000 13,005 -------- FREDDIE MAC (5.0%) 3.625%, 09/15/06 (c) 20,000 19,872 -------- Total U.S. Government Agencies (Cost $32,938) 32,877 -------- U.S. GOVERNMENT AGENCY MORTGAGES (87.8%) FANNIE MAE (67.5%) 6.500%, 12/01/08 2,464 2,517 3.500%, 04/25/11 21,235 20,883 7.500%, 09/01/12 4,948 5,111 6.500%, 06/01/13 502 514 6.000%, 09/01/13 1,057 1,071 4.000%, 11/01/13 9,651 9,145 4.500%, 03/01/14 15,958 15,391 6.000%, 09/01/16 6,798 6,889 6.500%, 10/01/16 1,131 1,158 5.500%, 12/01/16 3,048 3,034 6.000%, 08/01/17 1,905 1,932 6.000%, 10/01/17 1,218 1,235 6.000%, 10/01/17 3,571 3,620 6.000%, 06/01/19 5,543 5,618 5.500%, 07/01/19 7,774 7,730 5.500%, 07/01/19 2,200 2,188 5.500%, 08/01/19 3,562 3,542 5.500%, 10/01/19 4,844 4,816 5.500%, 06/01/20 9,438 9,384 3.500%, 10/25/21 17,745 17,441 7.000%, 05/01/32 5,443 5,610 6.500%, 12/01/32 3,729 3,813 4.121%, 05/01/33 (b) 5,915 5,814 3.946%, 06/01/33 (b) 9,751 9,552 4.098%, 08/01/33 (b) 12,512 12,286 5.000%, 11/01/33 18,747 17,896 6.000%, 11/01/33 1,879 1,880 3.233%, 05/01/34 (b) 9,050 8,913 4.502%, 05/01/34 (b) 2,703 2,657 4.023%, 06/01/34 (b) 5,357 5,208 4.242%, 06/01/34 (b) 3,304 3,239
- ------------------------------------------------------- Shares or Principal Amount($) Value($) - ------------------------------------------------------- FANNIE MAE--CONTINUED 7.000%, 06/01/34 4,953 5,101 3.484%, 07/01/34 (b) 6,795 6,742 4.497%, 08/01/35 (b) 9,839 9,698 6.000%, 08/01/35 10,882 10,886 6.000%, 12/01/35 13,244 13,248 5.173%, 01/01/36 (b) 7,442 7,393 5.528%, 02/01/36 (b) 12,983 12,959 -------- 266,114 -------- FREDDIE MAC (20.3%) 7.000%, 11/01/16 866 891 6.500%, 02/01/17 2,446 2,499 5.500%, 05/01/17 4,633 4,608 6.000%, 07/01/17 2,891 2,926 4.500%, 05/01/18 7,747 7,415 5.000%, 02/15/19 12,621 12,562 4.500%, 10/15/27 10,000 9,769 6.000%, 12/01/31 16,596 16,628 6.500%, 09/01/32 4,100 4,189 5.046%, 12/01/32 (b) 13,793 13,824 4.250%, 05/01/34 (b) 5,000 4,776 -------- 80,087 -------- Total U.S. Government Agency Mortgages (Cost $353,311) 346,201 -------- SHORT-TERM INVESTMENTS (7.5%) CSFB Enhanced Liquidity Portfolio, 5.006% (d) 29,675,000 29,675 -------- Total Short-Term Investments (Cost $29,675) 29,675 -------- REPURCHASE AGREEMENTS (3.8%) Merrill Lynch & Co., Inc., 4.725%, dated 03/31/06, to be repurchased on 04/03/06, repurchase price $3,379,247 (collateralized by U.S. Government Agencies, 5.50%, due 02/01/35; total market value $3,449,998) 3,378 3,378
See Notes to Financial Statements. 83 SCHEDULES OF PORTFOLIO INVESTMENTS STI CLASSIC FUNDS March 31, 2006 (Amounts in thousands, except Shares) LIMITED-TERM FEDERAL MORTGAGE SECURITIES FUND -- CONCLUDED
- ------------------------------------------------------- Shares or Principal Amount($) Value($) - ------------------------------------------------------- REPURCHASE AGREEMENTS--CONTINUED Morgan Stanley, 4.705%, dated 03/31/06, to be repurchased on 04/03/06, repurchase price $11,655,631 (collateralized by U.S. Government Agencies, 5.147%-6.50%, due 08/01/34-10/01/35; total market value $12,120,658) 11,651 11,651 -------- Total Repurchase Agreements (Cost $15,029) 15,029 -------- Total Investments (Cost $430,953) (a) -- 107.4% 423,782 Liabilities in excess of other assets -- (7.4)% (29,281) -------- Net Assets -- 100.0% $394,501 ========
- --------------- (a)Cost for federal income tax purposes is $430,079 (amount in thousands). Unrealized appreciation/ (depreciation) on a tax basis is as follows (amounts in thousands): Unrealized Appreciation.................. $ 1,043 Unrealized Depreciation.................. (7,339) ------- Unrealized Appreciation (Depreciation)... $(6,296) =======
(b)Variable rate security. Rate presented represents rate in effect at March 31, 2006. Maturity date represents actual maturity date. (c)This security or a partial position of the security was on loan at March 31, 2006. The total value of securities on loan at March 31, 2006 in thousands was $28,902. (d)This security was purchased with cash collateral held from securities lending. See Notes to Financial Statements. 84 SCHEDULES OF PORTFOLIO INVESTMENTS STI CLASSIC FUNDS March 31, 2006 (Amounts in thousands, except Shares) MARYLAND MUNICIPAL BOND FUND
- --------------------------------------------------------- Shares or Principal Amount($) Value($) - --------------------------------------------------------- MUNICIPAL BONDS (95.8%) MARYLAND (90.7%) Annapolis Public Improvement, GO, 5.000%, 04/01/08 1,000 1,027 Anne Arundel County Special Obligation, Arundel Mills Project, RB, 5.125%, 07/01/22, Callable 07/01/14 @ 100, County Guaranteed 1,000 1,063 Baltimore Convention Center, Baltimore Hotel Corp., Ser A, RB, 5.250%, 09/01/39, Callable 09/01/16 @ 100 1,000 1,064 Baltimore Parking System Facilities, Ser A, RB, 5.900%, 07/01/13, FGIC 900 1,006 Charles County, County Commissioner, Public Improvement, GO, 5.000%, 03/01/14 1,000 1,073 Charles County, County Commissioner, Public Improvement, GO, 5.000%, 03/01/16 1,250 1,346 Frederick County Educational Facilities, Mount St. Mary's University, RB, 5.625%, 09/01/38, Callable 09/01/16 @ 100 500 524 Frederick County, Public Facilities, GO, 5.000%, 12/01/16, Callable 12/01/15 @ 100 1,000 1,075 Harford County, GO, 5.000%, 07/15/25, Callable 07/15/15 @ 100 1,000 1,051 Maryland State Community Development Administration, Department of Housing & Community Development, People's Resource Center, Ser E, RB, 5.700%, 09/01/17, Callable 09/01/09 @ 100 350 356
- --------------------------------------------------------- Shares or Principal Amount($) Value($) - --------------------------------------------------------- MARYLAND--CONTINUED Maryland State Community Development Administration, Department of Housing & Community Development, Ser 2, RB, AMT, 4.700%, 04/01/11 1,000 1,027 Maryland State Community Development Administration, Department of Housing & Community Development, Ser 2001B, RB, AMT, 4.100%, 07/01/08, FHA/GNMA/HUD 285 287 Maryland State Economic Development Corp., 5.000%, 07/01/35 500 518 Maryland State Economic Development Corp., Department of Transportation Headquarters, RB, 5.375%, 06/01/19, Callable 06/01/12 @ 100.50 1,000 1,079 Maryland State Economic Development Corp., Student Housing, University of Maryland College Park Project, RB, 5.000%, 06/01/33, Callable 06/01/06 @ 100, CIFG 750 777 Maryland State Economic Development Corp., U.S. Pharmacopeial Project, Ser B, RB, 3.170%, 07/01/34, AMBAC (b) 650 650 Maryland State Economic Development Corp., University of Maryland College Park Project, RB, 5.750%, 06/01/18, Callable 06/01/13 @ 100 475 526 Maryland State Economic Development Corp., University of Maryland, Ser A, RB, 5.625%, 10/01/23, Callable 10/01/13 @ 100 (c) 400 387
See Notes to Financial Statements. 85 SCHEDULES OF PORTFOLIO INVESTMENTS STI CLASSIC FUNDS March 31, 2006 (Amounts in thousands, except Shares) MARYLAND MUNICIPAL BOND FUND -- CONTINUED
- --------------------------------------------------------- Shares or Principal Amount($) Value($) - --------------------------------------------------------- MARYLAND--CONTINUED Maryland State Economic Development Corp., University Village at Sheppard Pratt, RB, 5.875%, 07/01/21, Callable 07/01/11 @ 101, ACA 250 266 Maryland State Health & Higher Educational Facilities Authority, Calvert Health Systems, RB, 5.500%, 07/01/36, Callable 07/01/14 @ 100 1,000 1,052 Maryland State Health & Higher Educational Facilities Authority, Carroll County General Hospital, RB, 6.000%, 07/01/18, Callable 07/01/12 @ 100 1,035 1,118 Maryland State Health & Higher Educational Facilities Authority, Carroll County General Hospital, RB, 6.000%, 07/01/21, Callable 07/01/12 @ 100 250 269 Maryland State Health & Higher Educational Facilities Authority, Catholic Health Initiatives, Ser A, RB, 6.000%, 12/01/24, Callable 06/01/10 @ 101, ETM 250 274 Maryland State Health & Higher Educational Facilities Authority, Goucher College, RB, 5.375%, 07/01/25, Callable 07/01/14 @ 100 565 595 Maryland State Health & Higher Educational Facilities Authority, Hebrew Home of Greater Washington, RB, 5.700%, 01/01/21, Callable 01/01/12 @ 100 480 508 Maryland State Health & Higher Educational Facilities Authority, Hebrew Home of Greater Washington, RB, 5.700%, 01/01/22, Callable 01/01/12 @ 100 510 538
- --------------------------------------------------------- Shares or Principal Amount($) Value($) - --------------------------------------------------------- MARYLAND--CONTINUED Maryland State Health & Higher Educational Facilities Authority, Johns Hopkins University, Ser A, RB, 5.000%, 07/01/38, Callable 07/01/14 @ 100 1,115 1,149 Maryland State Health & Higher Educational Facilities Authority, Lifebridge Health, Ser A, RB, 5.125%, 07/01/34, Callable 07/01/14 @ 100 1,000 1,025 Maryland State Health & Higher Educational Facilities Authority, Mercy Ridge, Ser B, RB, 5.000%, 04/01/08, Callable 04/01/06 @ 101 300 303 Maryland State Health & Higher Educational Facilities Authority, Union Hospital of Cecil Country, RB, 5.750%, 07/01/20, Callable 07/01/12 @ 100 500 535 Maryland State Health & Higher Educational Facilities Authority, University of Maryland Medical System, RB, 5.750%, 07/01/21, Callable 07/01/11 @ 100 1,725 1,828 Maryland State Industrial Development Authority, Economic Development, Our Lady of Good Counsel School, Ser A, RB, 6.000%, 05/01/35, Callable 05/15/15 @ 100 500 532 Maryland State Stadium Authority, RB, 5.800%, 03/01/26, Callable 03/01/07 @ 101, AMBAC 250 253 Maryland State Transportation Authority, Baltimore/ Washington International Airport, Ser B, RB, AMT, 5.375%, 03/01/15, Callable 03/01/12 @ 101, AMBAC 1,000 1,059
See Notes to Financial Statements. 86 SCHEDULES OF PORTFOLIO INVESTMENTS STI CLASSIC FUNDS March 31, 2006 (Amounts in thousands, except Shares) MARYLAND MUNICIPAL BOND FUND -- CONTINUED
- --------------------------------------------------------- Shares or Principal Amount($) Value($) - --------------------------------------------------------- MARYLAND--CONTINUED Maryland State, Capital Improvements, Ser A, GO, 5.000%, 02/15/17, Callable 02/15/15 @ 100 1,250 1,339 Maryland State, Capital Improvements, Ser A, GO, 5.000%, 02/15/19, Callable 02/15/15 @ 100 1,000 1,066 Maryland State, State & Local Facilities, Ser 2, GO, 5.000%, 08/01/16, Callable 08/01/13 @ 100 1,000 1,060 Montgomery County Economic Development, Trinity Health Care Group, RB, 5.500%, 12/01/16, Callable 12/01/11 @ 100 1,000 1,059 Montgomery County Housing Opportunities Commission, Aston Woods Apartments, Ser A, RB, 4.900%, 05/15/31, Callable 05/15/08 @ 102, FNMA 1,150 1,190 Montgomery County Housing Opportunities Commission, Ser A, RB, 4.450%, 07/01/17, Callable 01/01/11 @ 100 170 170 Montgomery County Housing Opportunities Commission, Ser A, RB, 6.000%, 07/01/20, Callable 07/01/10 @ 100 1,005 1,055 Montgomery County Revenue Authority, Lease, College Arts Center Project, Ser A, RB, 5.000%, 05/01/28, Callable 05/01/15 @ 100 1,000 1,035 Northeast Waste Disposal Authority, Montgomery County Resource Recovery Project, Ser A, RB, AMT, 6.000%, 07/01/06 1,100 1,105 St. Mary's County Public Improvement, GO, 5.500%, 07/01/11 1,165 1,265
- --------------------------------------------------------- Shares or Principal Amount($) Value($) - --------------------------------------------------------- MARYLAND--CONTINUED Talbot County Public Facilities, GO, 5.375%, 03/15/17, Callable 03/15/12 @ 101 1,000 1,081 Washington Suburban Sanitation District, Ser B, GO, 3.100%, 06/01/23, LOC: Bank of America N.A. (b) 1,000 1,000 ------- 38,565 ------- PUERTO RICO (5.1%) Puerto Rico Commonwealth Highway & Transportation Authority, Ser AA, RB, 5.000%, 07/01/06 500 502 Puerto Rico Electric Power Authority, Ser RR, RB, 5.000%, 07/01/26, Callable 07/01/15 @ 100, XLCA 1,000 1,046 Puerto Rico Housing Bank & Finance Agency, Affordable Housing Mortgage Portfolio I, RB, AMT, 6.250%, 04/01/29, Callable 10/01/06 @ 101, GNMA/FNMA/FHLMC 625 631 ------- 2,179 ------- Total Municipal Bonds (Cost $40,198) 40,744 ------- MONEY MARKET FUNDS (3.9%) Federated Maryland Municipal Cash Trust 1,678,315 1,678 ------- Total Money Market Funds (Cost $1,678) 1,678 ------- Total Investments (Cost $41,876) (a) -- 99.7% 42,422 Other assets in excess of liabilities -- 0.3% 112 ------- Net Assets -- 100.0% $42,534 =======
See Notes to Financial Statements. 87 SCHEDULES OF PORTFOLIO INVESTMENTS STI CLASSIC FUNDS March 31, 2006 (Amounts in thousands, except Shares) MARYLAND MUNICIPAL BOND FUND -- CONCLUDED - --------------- (a)Cost for federal income tax purposes is $41,873 (amount in thousands). Unrealized appreciation/ (depreciation) on a tax basis is as follows (amounts in thousands): Unrealized Appreciation.................... $ 723 Unrealized Depreciation.................... (174) ----- Unrealized Appreciation (Depreciation)..... $ 549 =====
(b)Variable rate security. Rate presented represents rate in effect at March 31, 2006. Maturity date represents actual maturity date. (c)Rule 144A, Section 4(2) or other security which is restricted as to resale to institutional investors. The Fund's advisor has deemed this security to be illiquid based upon procedures approved by the Board of Trustees. The restricted securities held by the Fund as of March 31, 2006 are identified below (in thousands):
PERCENT ACQUISITION OF NET ISSUE DESCRIPTION DATE COST SHARES VALUE ASSETS - ------------------------------------------------------------------------- Maryland State Economic Development Corp., University of Maryland, Ser A, RB, 5.625%, 10/01/23, Callable 10/01/13 @ 100 01/31/03 $392 400 $387 0.91%
ACA -- Security insured by American Capital Access AMBAC -- Security insured by the American Municipal Bond Assurance Corporation AMT -- Alternative Minimum Tax Paper CIFG -- Security insured by CIFG Guaranty ETM -- Escrowed to Maturity FGIC -- Security insured by the Financial Guaranty Insurance Company FHA -- Security insured by the Federal Housing Administration FHLMC -- Security insured by Freddie Mac FNMA -- Security insured by Fannie Mae GNMA -- Security insured by the Government National Mortgage Association GO -- General Obligation HUD -- Security insured by the Department of Housing and Urban Development LOC -- Line of Credit RB -- Revenue Bond Ser -- Series XLCA -- Security insured by XL Capital Assurance, Inc. See Notes to Financial Statements. 88 SCHEDULES OF PORTFOLIO INVESTMENTS STI CLASSIC FUNDS March 31, 2006 (Amounts in thousands, except Shares) NORTH CAROLINA TAX-EXEMPT BOND FUND
- -------------------------------------------------------- Shares or Principal Amount($) Value($) - -------------------------------------------------------- MUNICIPAL BONDS (98.7%) NORTH CAROLINA (95.0%) Appalachian State University, Procurement Services Building, RB, 5.000%, 07/15/30, Callable 07/15/15 @100, MBIA 1,250 1,306 Brunswick County Enterprise System, Ser A, RB, 5.250%, 04/01/22, Callable 04/01/14 @ 100, FSA 500 535 Buncombe County, COP, 5.250%, 10/01/17, Callable 10/01/13 @ 100, AMBAC 585 623 Charlotte Water & Sewer System, RB, 5.250%, 06/01/15, Prerefunded 06/01/09 @ 101 500 528 Charlotte Water & Sewer System, RB, 5.750%, 06/01/19, Prerefunded 06/01/10 @ 101 2,000 2,175 Charlotte, FY 2006 Equipment Aquisition Project, Ser A, COP, 5.000%, 03/01/09 1,000 1,036 Charlotte-Mecklenberg Hospital Authority, Carolinas Health Care System, Ser A, RB, 5.000%, 01/15/13, Callable 01/15/07 @ 102 500 514 Charlotte-Mecklenburg Hospital Authority, Carolinas Health Care System, Ser A, 5.000%, 01/15/31, Callable 01/15/11 @ 101 1,260 1,279 Dare County, COP, 5.000%, 06/01/23, Callable 12/01/12 @ 100, AMBAC 830 859 Durham, GO, 5.000%, 02/01/07 500 506 Fayetteville Public Works Commission, RB, 3.375%, 01/15/07, FSA 840 839 Greensboro Enterprise System, Ser A, RB, 5.000%, 06/01/26, Callable 06/01/15 @ 100 1,000 1,043 Iredell County Public Facilities Project, COP, 5.250%, 10/01/20, Callable 10/01/13 @ 100, AMBAC 500 531
- -------------------------------------------------------- Shares or Principal Amount($) Value($) - -------------------------------------------------------- NORTH CAROLINA--CONTINUED New Hanover County Hospital, New Hanover Regional Medical Center Project, RB, 5.300%, 10/01/06, AMBAC 200 202 North Carolina Capital Facilities Finance Agency, Educational Facilities, Johnson & Wales University Project, Ser A, RB, 5.000%, 04/01/14, Callable 04/01/13 @ 100 500 526 North Carolina Capital Facilities Finance Agency, Educational Facilities, Trinity Episcopal School Project, RB, 3.180%, 09/01/24, LOC: Wachovia Bank N.A.(b) 400 400 North Carolina Capital Facilities Finance Agency, Student Housing, NCA&T University Foundation Project, Ser A, RB, 5.250%, 06/01/20, Callable 06/01/14 @ 100, LOC: Radian 500 531 North Carolina Eastern Municipal Power Agency, Power System, Ser A, RB, 5.700%, 01/01/15, Callable 01/01/07 @ 102, MBIA 500 516 North Carolina Eastern Municipal Power Agency, Power System, Ser C, RB, 5.375%, 01/01/16, Callable 01/01/13 @ 100 500 529 North Carolina Educational Facilities Finance Agency, Belmont Abbey College, RB, 3.180%, 06/01/18, LOC: First Union National Bank (b) 400 400 North Carolina Educational Facilities Finance Agency, Wingate University, RB, 3.180%, 05/01/22, LOC: Bank of America N.A. (b) 400 400
See Notes to Financial Statements. 89 SCHEDULES OF PORTFOLIO INVESTMENTS STI CLASSIC FUNDS March 31, 2006 (Amounts in thousands, except Shares) NORTH CAROLINA TAX-EXEMPT BOND FUND -- CONTINUED
- -------------------------------------------------------- Shares or Principal Amount($) Value($) - -------------------------------------------------------- NORTH CAROLINA--CONTINUED North Carolina Medical Care Commission, Health Care Facilities, Novant Health Obligations Group, Ser A, RB, 5.000%, 11/01/17, Callable 11/01/13 @ 100 500 521 North Carolina Medical Care Commission, Health Care Facilities, Novant Health Obligations Group, Ser A, RB, 5.000%, 11/01/18, Callable 11/01/13 @ 100 500 520 North Carolina Medical Care Commission, Health Care Facilities, RB, 5.000%, 01/01/33, Callable 01/01/15 @ 100, FGIC 2,520 2,590 North Carolina Medical Care Commission, Northeast Medical Center Project, RB, 5.750%, 11/01/06, AMBAC 1,095 1,109 North Carolina Municipal Power Agency, No. 1 Catawba Electric, Ser A, RB, 5.500%, 01/01/15, MBIA 500 549 North Carolina Municipal Power Agency, No. 1 Catawba Electric, Ser A, RB, 5.000%, 01/01/20, Callable 01/01/11 @ 100 1,000 1,030 North Carolina State University at Raleigh, Centennial Campus Project, Ser B, RB, 5.125%, 12/15/16, Prerefunded 12/15/06 @ 101, MBIA 500 510 North Carolina State, Albermarle Building, Clean Water, Ser B, GO, 2.625%, 05/01/06 500 500 North Carolina State, Public Improvement, Ser A, GO, 5.250%, 03/01/13 1,000 1,085 Pitt County School Facilities Project, Ser B, COP, 5.300%, 04/01/21, Callable 04/01/10 @ 101, FSA 500 528
- -------------------------------------------------------- Shares or Principal Amount($) Value($) - -------------------------------------------------------- NORTH CAROLINA--CONTINUED Raleigh Combined Enterprise System, RB, 5.250%, 03/01/17, Callable 03/01/11 @ 100 500 534 Raleigh Durham Airport Authority, Ser A, RB, 5.000%, 05/01/30, Callable 05/01/15 @ 100, AMBAC 2,000 2,077 Rockingham County, COP, 5.000%, 04/01/18, Callable 04/01/12 @ 101, AMBAC 500 524 Salisbury Enterprise System, RB, 5.000%, 02/01/20, Callable 02/01/12 @ 101, FSA 500 523 University of North Carolina at Wilmington, COP, 5.000%, 06/01/31, Callable 06/01/15 @ 100, FGIC 1,295 1,339 University of North Carolina Systems Pool, Ser A, RB, 5.375%, 04/01/21, Callable 10/01/12 @ 100, AMBAC 400 431 University of North Carolina Systems Pool, Ser A, RB, 5.375%, 04/01/22, Callable 10/01/12 @ 100, AMBAC 500 539 University of North Carolina Systems Pool, Ser A, RB, 5.000%, 04/01/23, Callable 04/01/15 @ 100, AMBAC 1,910 2,005 Wake County Hospital, RB, 5.125%, 10/01/13, MBIA, ETM 350 378 Wake County Industrial Facilities & Pollution Control Financing Authority, Carolina Power & Light Co. Project, RB, 5.375%, 02/01/17, Callable 02/01/12 @ 101 1,000 1,054 Wilmington, COP, 5.000%, 09/01/14, AMBAC 520 553 Wilmington, Ser A, COP, 5.000%, 06/01/22, Callable 06/01/16 @ 100 1,415 1,482 Wilmington, Ser A, COP, 5.350%, 06/01/24, Callable 06/01/09 @ 101, MBIA 500 529
See Notes to Financial Statements. 90 SCHEDULES OF PORTFOLIO INVESTMENTS STI CLASSIC FUNDS March 31, 2006 (Amounts in thousands, except Shares) NORTH CAROLINA TAX-EXEMPT BOND FUND -- CONCLUDED
- -------------------------------------------------------- Shares or Principal Amount($) Value($) - -------------------------------------------------------- NORTH CAROLINA--CONTINUED Wilmington, Ser A, COP, 5.000%, 06/01/32, Callable 06/01/15 @ 100, AMBAC 1,500 1,547 Wilson Combined Enterprise Systems, RB, 5.250%, 12/01/18, Callable 12/01/12 @ 100, FSA 500 535 Winston-Salem State University, Housing & Dining System, Ser B, RB, 4.850%, 01/01/11, Callable 01/01/09 @ 101, MBIA 500 517 Winston-Salem Water & Sewer System, RB, 5.500%, 06/01/15, Prerefunded 06/01/11 @ 101 270 294 Winston-Salem Water & Sewer System, RB, 5.500%, 06/01/16, Prerefunded 06/01/11 @ 101 200 218 ------- 39,299 ------- PUERTO RICO (3.7%) Puerto Rico Commonwealth Highway & Transportation Authority, Ser AA, RB, 5.000%, 07/01/06 500 502 Puerto Rico Convention Center Authority, Hotel Occupancy Tax, Ser A, RB, 5.000%, 07/01/31, Callable 07/01/16 @ 100, AMBAC 1,000 1,047 ------- 1,549 ------- Total Municipal Bonds (Cost $40,913) 40,848 ------- MONEY MARKET FUNDS (3.9%) Federated Tax-Free Obligations Fund 1,561,891 1,562 SEI Tax Exempt Trust, Institutional Tax Free Fund 47,134 47 ------- Total Money Market Funds (Cost $1,609) 1,609 ------- Total Investments (Cost $42,522) (a) -- 102.6% 42,457 Liabilities in excess of other assets -- (2.6)% (1,069) ------- Net Assets -- 100.0% $41,388 =======
- --------------- (a)Cost for federal income tax and financial reporting purposes is the same. Unrealized appreciation/(depreciation) is as follows (amounts in thousands): Unrealized Appreciation.................... $ 180 Unrealized Depreciation.................... (245) ----- Unrealized Appreciation (Depreciation)..... $ (65) =====
(b)Variable rate security. Rate presented represents rate in effect at March 31, 2006. Maturity date represents actual maturity date. AMBAC -- Security insured by the American Municipal Bond Assurance Corporation COP -- Certificate of Participation ETM -- Escrowed to Maturity FGIC -- Security insured by the Financial Guaranty Insurance Company FSA -- Security insured by Financial Security Assurance GO -- General Obligation LOC -- Line of Credit MBIA -- Security insured by the Municipal Bond Insurance Association RB -- Revenue Bond Ser -- Series See Notes to Financial Statements. 91 SCHEDULES OF PORTFOLIO INVESTMENTS STI CLASSIC FUNDS March 31, 2006 (Amounts in thousands, except Shares) SEIX FLOATING RATE HIGH INCOME FUND
- -------------------------------------------------------- Shares or Principal Amount($) Value($) - -------------------------------------------------------- BANK LOANS (94.2%) ADVERTISING (0.9%) R.H. Donnelley Corp., 6.690%, 06/30/11 (b) (d) 1,000 1,004 -------- AUTO PARTS & EQUIPMENT (1.9%) Goodyear Tire & Rubber Co. (The), 7.060%, 04/30/10 (b) (d) 2,000 2,025 -------- CHEMICALS (5.7%) Celanese AG, 6.979%, 06/01/10 (b) (d) 1,995 2,020 Huntsman International LLC, 6.530%, 08/16/12 (b) (d) 2,000 2,011 Ineos Group Holdings PLC, 0.000%, 12/14/13 (b) (d) (e) 1,000 1,013 Ineos Group Holdings PLC, 0.000%, 12/14/14 (b) (d) (e) 1,000 1,013 -------- 6,057 -------- COAL (0.9%) Alpha Natural Resources, Inc., 6.320%, 10/26/12 (b) (d) 998 1,003 -------- COMMERCIAL SERVICES (10.4%) Eastman Kodak Co., 6.888%, 10/18/12 (b) (d) 3,000 3,032 Hertz Corp. (The), 6.980%, 12/21/12 (b) (d) 2,800 2,836 Hertz Corp. (The), 7.180%, 12/21/12 (b) (d) 193 195 Quintiles Transnational Corp., 6.820%, 03/21/13 (b) (d) 1,000 1,009 Quintiles Transnational Corp., 8.820%, 03/21/14 (b) (d) 1,000 1,015 United Rental North America, Inc., 6.640%, 02/14/11 (b) (d) 433 437 United Rental North America, Inc., 7.070%, 02/14/11 (b) (d) 2,494 2,521 -------- 11,045 -------- COMPUTERS (3.8%) Stratus Technologies, Inc., 7.960%, 03/15/12 (b) (d) 1,000 1,014 SunGard Data Systems, Inc., 7.215%, 02/11/13 (b) (d) 2,992 3,030 -------- 4,044 -------- DIVERSIFIED FINANCIAL SERVICES (1.9%) Nasdaq Stock Market, Inc. (The), 6.288%, 12/08/11 (b) (d) 2,050 2,064 --------
- -------------------------------------------------------- Shares or Principal Amount($) Value($) - -------------------------------------------------------- ELECTRIC (8.5%) Boston Generating LLC, 0.000%, 10/01/10 (b) (d) (e) 2,000 2,030 LSP-Kendall Energy LLC, 6.979%, 10/07/13 (b) (d) 1,985 1,982 Mirant North America LLC, 6.441%, 01/03/13 (b) (d) 1,995 2,011 NRG Energy, Inc., 6.820%, 02/01/13 (b) (d) 3,000 3,037 -------- 9,060 -------- ENERGY (0.9%) Plum Point Associates LLC, 8.044%, 02/21/14 (b) (d) 806 812 Plum Point Associates LLC, 8.167%, 02/21/14 (b) (d) 194 196 -------- 1,008 -------- ENTERTAINMENT (4.0%) SFX Entertainment, Inc., 7.230%, 06/21/13 (b) (d) 1,995 2,000 Venetian Casino Resort LLC, 6.730%, 06/15/11 (b) (d) 1,865 1,883 Venetian Casino Resort LLC, 6.730%, 06/15/11 (b) (d) 385 388 -------- 4,271 -------- ENVIRONMENTAL CONTROL (1.9%) Allied Waste North America, Inc., 0.000%, 01/15/12 (b) (d) (e) 559 561 Allied Waste North America, Inc., 0.000%, 01/15/12 (b) (d) (e) 1,441 1,446 -------- 2,007 -------- FOREST PRODUCTS & PAPER (2.8%) Georgia-Pacific Corp., 7.163%, 11/22/10 (b) (d) 1,975 1,986 Georgia-Pacific Corp., 7.884%, 12/20/13 (b) (d) 1,000 1,022 -------- 3,008 -------- HEALTHCARE -- SERVICES (4.3%) CRC Health Corp., 7.229%, 02/06/13 (b) (d) 3,000 3,038 Fresenius Medical Care AG & Co., 6.384%, 03/13/13 (b) (d) 1,500 1,505 -------- 4,543 --------
See Notes to Financial Statements. 92 SCHEDULES OF PORTFOLIO INVESTMENTS STI CLASSIC FUNDS March 31, 2006 (Amounts in thousands, except Shares) SEIX FLOATING RATE HIGH INCOME FUND -- CONTINUED
- -------------------------------------------------------- Shares or Principal Amount($) Value($) - -------------------------------------------------------- LODGING (3.8%) Metro-Goldwyn-Mayer, Inc., 7.229%, 04/08/11 (b) (d) 2,000 2,017 MGM Mirage, Inc., 6.284%, 04/25/10 (b) (d) 2,001 2,006 -------- 4,023 -------- MEDIA (18.6%) Cablevision Systems Corp., 6.664%, 03/21/12 (b) (d) 1,500 1,510 Dex Media West LLC, 6.516%, 12/30/10 (b) (d) 2,968 2,990 DirecTV Holdings LLC, 6.276%, 03/30/10 (b) (d) 2,000 2,019 Entravision Communications Corp., 6.030%, 03/29/13 (b) (d) 2,000 2,014 Gray Television, Inc., 6.030%, 11/22/12 (b) (d) 2,993 3,010 Next Media Operating, Inc., 6.661%, 11/04/12 (b) (d) 614 620 Next Media Operating, Inc., 6.753%, 11/04/12 (b) (d) 1,381 1,394 Quebecor Media, 6.602%, 01/17/13 (b) (d) 2,000 2,027 San Juan Cable LLC, 6.840%, 10/31/12 (b) (d) 998 1,008 San Juan Cable LLC, 10.340%, 10/31/13 (b) (d) 1,000 1,009 Time Warner Telecom, Inc., 7.118%, 11/30/10 (b) (d) 1,995 2,025 -------- 19,626 -------- OIL & GAS (3.8%) Cheniere Energy, Inc., 7.729%, 08/30/12 (b) (d) 1,995 2,012 Petroleum Geo-Services ASA, 7.480%, 12/16/12 (b) (d) 1,995 2,019 -------- 4,031 -------- PIPELINES (6.6%) EL Paso Corp., 7.750%, 11/23/09 (b) (d) 1,992 2,015 MarkWest Energy Partners LP, 7.014%, 12/29/10 (b) (d) 3,000 3,022 Targa Resources, Inc., 6.104%, 10/31/12 (b) (d) 388 392 Targa Resources, Inc., 7.091%, 10/31/12 (b) (d) 1,608 1,628 -------- 7,057 --------
- -------------------------------------------------------- Shares or Principal Amount($) Value($) - -------------------------------------------------------- RETAIL (4.5%) Capital Automotive LP, 6.340%, 12/16/10 (b) (d) 2,708 2,734 Neiman Marcus Group, Inc. (The), 7.340%, 04/06/13 (b) (d) 2,000 2,027 -------- 4,761 -------- SEMICONDUCTORS (1.4%) ON Semiconductor Corp., 0.000%, 12/15/11 (b) (d) (e) 1,497 1,512 -------- TELECOMMUNICATIONS (7.6%) Consolidated Communications, Inc., 6.675%, 11/30/11 (b) (d) 2,000 2,016 Qwest Corp., 9.503%, 06/30/07 (b) (d) 4,000 4,099 Sorenson Communications, Inc., 7.749%, 11/15/12 (b) (d) 1,975 2,002 -------- 8,117 -------- Total Bank Loans (Cost $100,579) 100,266 -------- CORPORATE BONDS (5.2%) MEDIA (1.8%) EchoStar DBS Corp., 7.125%, 02/01/16, Callable 10/01/06 @ 100 (d) 2,000 1,968 -------- PACKAGING & CONTAINERS (1.4%) Ball Corp., 6.875%, 12/15/12, Callable 12/15/07 @ 103.44 1,500 1,534 -------- REITS (2.0%) Omega Healthcare Investors, Inc., 7.000%, 01/15/16, Callable 01/15/11 @ 103.50 (d) 2,000 1,999 -------- Total Corporate Bonds (Cost $5,521) 5,501 -------- U.S. TREASURY OBLIGATIONS (15.9%) U.S. TREASURY BILLS (15.9%) 4.484%, 05/11/06 (c) 17,000 16,920 -------- Total U.S. Treasury Obligations (Cost $16,916) 16,920 --------
See Notes to Financial Statements. 93 SCHEDULES OF PORTFOLIO INVESTMENTS STI CLASSIC FUNDS March 31, 2006 (Amounts in thousands, except Shares) SEIX FLOATING RATE HIGH INCOME FUND -- CONCLUDED
- ------------------------------------------------------- Shares or Principal Amount($) Value($) - ------------------------------------------------------- MONEY MARKET FUNDS (10.1%) Federated Prime Obligation Money Market Fund 5,044,280 5,044 Federated Prime Value Money Market Fund 5,713,403 5,714 -------- Total Money Market Funds (Cost $10,758) 10,758 -------- Total Investments (Cost $133,774) (a) -- 125.4% 133,445 Liabilities in excess of other assets -- (25.4)% (27,040) -------- Net Assets -- 100.0% $106,405 ========
- --------------- (a)Cost for federal income tax and financial reporting purposes is the same. Unrealized appreciation/ (depreciation) is as follows (amounts in thousands): Unrealized Appreciation.................... $ 76 Unrealized Depreciation.................... (405) ----- Unrealized Appreciation (Depreciation)..... $(329) =====
(b)Variable rate security. Rate presented represents rate in effect at March 31, 2006. Maturity date represents actual maturity date. (c)Rate represents the effective yield at purchase. (d)Rule 144A, Section 4(2) or other security which is restricted as to resale to institutional investors. The Fund's advisor has deemed this security to be liquid based upon procedures approved by the Board of Trustees. (e)This security has not settled as of March 31, 2006 and thus does not have a rate in effect. The security does not have a stated settlement date and will receive a rate upon settling with the custodian. LLC -- Limited Liability Corporation LP -- Limited Partnership PLC -- Public Limited Company REIT -- Real Estate Investment Trust See Notes to Financial Statements. 94 SCHEDULES OF PORTFOLIO INVESTMENTS STI CLASSIC FUNDS March 31, 2006 (Amounts in thousands, except Shares) SEIX HIGH YIELD FUND
- ------------------------------------------------------- Shares or Principal Amount($) Value($) - ------------------------------------------------------- BANK LOANS (4.6%) CHEMICALS (0.6%) Celanese AG, 6.979%, 06/01/10 (b) (d) 2,993 3,029 Huntsman International LLC, 6.530%, 08/16/12 (b) (d) 2,000 2,011 Ineos Group Holdings PLC, 0.000%, 12/14/13 (b) (d) (h) 1,500 1,520 Ineos Group Holdings PLC, 0.000%, 12/14/14 (b) (d) (h) 1,500 1,519 ---------- 8,079 ---------- COMMERCIAL SERVICES (0.6%) Eastman Kodak Co., 6.888%, 10/18/12 (b) (d) 2,000 2,022 Hertz Corp. (The), 6.980%, 12/21/12 (b) (d) 2,737 2,771 Hertz Corp. (The), 7.180%, 12/21/12 (b) (d) 257 260 Quintiles Transnational Corp., 6.820%, 03/21/13 (b) (d) 1,000 1,009 United Rental North America, Inc., 6.640%, 02/14/11 (b) (d) 336 340 United Rental North America, Inc., 7.070%, 02/14/11 (b) (d) 1,907 1,927 ---------- 8,329 ---------- COMPUTERS (0.2%) SunGard Data Systems, Inc., 7.215%, 02/11/13 (b) (d) 1,995 2,020 ---------- ELECTRIC (0.2%) NRG Energy, Inc., 6.820%, 02/01/13 (b) (d) 2,000 2,024 ---------- ENERGY (0.1%) Plum Point Associates LLC, 8.044%, 02/21/14 (b) (d) 806 812 Plum Point Associates LLC, 8.167%, 02/21/14 (b) (d) 194 196 ---------- 1,008 ----------
- ------------------------------------------------------- Shares or Principal Amount($) Value($) - ------------------------------------------------------- ENTERTAINMENT (0.1%) Venetian Casino Resort LLC, 6.730%, 06/15/11 (b) (d) 1,000 1,009 ---------- ENVIRONMENTAL CONTROL (0.2%) Allied Waste North America, Inc., 0.000%, 01/15/12 (b) (d) (h) 559 561 Allied Waste North America, Inc., 0.000%, 01/15/12 (b) (d) (h) 1,441 1,446 ---------- 2,007 ---------- FOREST PRODUCTS & PAPER (0.2%) Georgia-Pacific Corp., 7.163%, 11/22/10 (b) (d) 988 993 Georgia-Pacific Corp., 7.884%, 12/20/13 (b) (d) 1,000 1,022 ---------- 2,015 ---------- LODGING (0.3%) Boyd Gaming Corp., 6.545%, 06/19/11 (b) (d) 1,995 2,016 Metro-Goldwyn-Mayer, Inc., 7.229%, 04/08/11 (b) (d) 1,000 1,008 MGM Mirage, Inc., 6.284%, 04/25/10 (b) (d) 1,000 1,003 ---------- 4,027 ---------- MEDIA (0.9%) Cablevision Systems Corp., 6.664%, 03/21/12 (b) (d) 2,000 2,013 Dex Media West LLC, 6.516%, 12/30/10 (b) (d) 989 997 DirecTV Holdings LLC, 6.276%, 03/30/10 (b) (d) 2,000 2,019 Entravision Communications Corp., 6.030%, 03/29/13 (b) (d) 1,000 1,007 Gray Television, Inc., 6.030%, 11/22/12 (b) (d) 1,995 2,007 Quebecor Media, 6.602%, 01/17/13 (b) (d) 1,000 1,013
See Notes to Financial Statements. 95 SCHEDULES OF PORTFOLIO INVESTMENTS STI CLASSIC FUNDS March 31, 2006 (Amounts in thousands, except Shares) SEIX HIGH YIELD FUND -- CONTINUED
- ------------------------------------------------------- Shares or Principal Amount($) Value($) - ------------------------------------------------------- MEDIA--CONTINUED San Juan Cable LLC, 6.840%, 10/31/12 (b) (d) 998 1,008 Time Warner Telecom, Inc., 7.118%, 11/30/10 (b) (d) 1,995 2,025 ---------- 12,089 ---------- OIL & GAS (0.2%) Cheniere Energy, Inc., 7.729%, 08/30/12 (b) (d) 997 1,006 Petroleum Geo-Services ASA, 7.480%, 12/16/12 (b) (d) 1,995 2,019 ---------- 3,025 ---------- PIPELINES (0.2%) EL Paso Corp., 7.750%, 11/23/09 (b) (d) 996 1,007 MarkWest Energy Partners LP, 7.014%, 12/29/10 (b) (d) 1,000 1,008 ---------- 2,015 ---------- RETAIL (0.2%) Neiman Marcus Group, Inc. (The), 7.340%, 04/06/13 (b) (d) 2,000 2,027 ---------- TELECOMMUNICATIONS (0.6%) Consolidated Communications, Inc., 6.675%, 11/30/11 (b) (d) 2,000 2,016 Qwest Corp., 9.503%, 06/30/07 (b) (d) 4,000 4,099 Sorenson Communications, Inc., 7.749%, 11/15/12 (b) (d) 1,975 2,002 ---------- 8,117 ---------- Total Bank Loans (Cost $58,017) 57,791 ---------- CORPORATE BONDS (90.3%) ADVERTISING (1.9%) Lamar Media Corp., 6.625%, 08/15/15, Callable 08/15/10 @ 103.31 10,970 10,915
- ------------------------------------------------------- Shares or Principal Amount($) Value($) - ------------------------------------------------------- ADVERTISING--CONTINUED R.H. Donnelley Corp., 10.875%, 12/15/12, Callable 12/15/07 @ 105.44 (d) 918 1,018 R.H. Donnelley Corp., 10.875%, 12/15/12, Callable 12/15/07 @ 105.44 11,341 12,574 ---------- 24,507 ---------- AEROSPACE/DEFENSE (1.4%) Alliant Techsystems, Inc., 6.750%, 04/01/16, Callable 04/01/11 @ 103.38 3,925 3,974 L-3 Communications Corp., 7.625%, 06/15/12, Callable 06/15/07 @ 103.81 7,433 7,675 L-3 Communications Corp., Ser B, 6.375%, 10/15/15, Callable 10/15/10 @ 103.19 (e) 6,235 6,141 ---------- 17,790 ---------- AUTO PARTS & EQUIPMENT (0.4%) Goodyear Tire & Rubber Co. (The), 9.000%, 07/01/15, Callable 07/01/10 @ 104.50 5,095 5,171 ---------- BEVERAGES (0.3%) Constellation Brands, Inc., 8.625%, 08/01/06 4,340 4,383 ---------- BUILDING MATERIALS (0.2%) U.S. Concrete, Inc., 8.375%, 04/01/14, Callable 04/01/09 @ 104.188 2,135 2,199 ---------- CHEMICALS (3.8%) Airgas, Inc., 9.125%, 10/01/11, Callable 10/01/06 @ 104.56 360 381 ARCO Chemical Co., 10.250%, 11/01/10 4,455 4,789 Equistar Chemical Funding Corp., 10.125%, 09/01/08 1,645 1,748
See Notes to Financial Statements. 96 SCHEDULES OF PORTFOLIO INVESTMENTS STI CLASSIC FUNDS March 31, 2006 (Amounts in thousands, except Shares) SEIX HIGH YIELD FUND -- CONTINUED
- ------------------------------------------------------- Shares or Principal Amount($) Value($) - ------------------------------------------------------- CHEMICALS--CONTINUED Equistar Chemicals LP, 10.625%, 05/01/11, Callable 05/01/07 @ 105.31 (e) 2,660 2,879 Ethyl Corp., 8.875%, 05/01/10 2,435 2,526 FMC Corp., Ser A, 7.000%, 05/15/08 1,057 1,081 Hercules, Inc., 11.125%, 11/15/07 1,480 1,608 Huntsman International LLC, 9.875%, 03/01/09 975 1,019 Huntsman International LLC, 11.625%, 10/15/10, Callable 10/15/07 @ 105.81 5,985 6,778 Huntsman International LLC, 11.500%, 07/15/12, Callable 07/15/08 @ 105.75 1,230 1,415 IMC Global, Inc., 10.875%, 08/01/13, Callable 08/01/08 @ 105.44 850 973 IMC Global, Inc., Ser B, 11.250%, 06/01/11, Callable 06/01/06 @ 105.625 275 293 Ineos Group Holdings PLC, 8.500%, 02/15/16, Callable 02/15/11 @ 104.25 (d) 8,350 7,932 Lyondell Chemical Co., Ser A, 9.625%, 05/01/07 (e) 7,480 7,723 MacDermid, Inc., 9.125%, 07/15/11, Callable 07/15/06 @ 104.56 650 686 Nalco Co., 7.750%, 11/15/11, Callable 11/15/07 @ 103.88 (e) 610 618
- ------------------------------------------------------- Shares or Principal Amount($) Value($) - ------------------------------------------------------- CHEMICALS--CONTINUED Rockwood Specialties Group, Inc., 10.625%, 05/15/11, Callable 05/15/07 @ 105.31 2,679 2,940 Rockwood Specialties Group, Inc., 7.500%, 11/15/14, Callable 11/15/09 @ 103.75 (e) 2,000 2,010 ---------- 47,399 ---------- COMMERCIAL SERVICES (1.6%) Alderwoods Group, Inc., 7.750%, 09/15/12, Callable 09/15/08 @ 103.88 2,050 2,106 Ashtead Holdings PLC, 8.625%, 08/01/15, Callable 08/01/10 @ 104.31 (d) 2,055 2,137 Corrections Corp. of America, 7.500%, 05/01/11, Callable 05/01/07 @ 103.75 7,735 7,968 Corrections Corp. of America, 6.250%, 03/15/13, Callable 03/15/09 @ 103.13 1,000 984 Hanover Compressor Co., 7.500%, 04/15/13, Callable 04/15/10 @ 103.75 1,225 1,225 Hertz Corp. (The), 8.875%, 01/01/14, Callable 01/01/10 @ 104.44 (d) 3,545 3,678 United Rentals NA, Inc., 6.500%, 02/15/12, Callable 02/15/08 @ 103.25 1,939 1,900 ---------- 19,998 ----------
See Notes to Financial Statements. 97 SCHEDULES OF PORTFOLIO INVESTMENTS STI CLASSIC FUNDS March 31, 2006 (Amounts in thousands, except Shares) SEIX HIGH YIELD FUND -- CONTINUED
- ------------------------------------------------------- Shares or Principal Amount($) Value($) - ------------------------------------------------------- COMPUTERS (0.8%) Activant Solutions, Inc., 10.500%, 06/15/11, Callable 06/15/07 @ 105.25 975 1,080 Seagate Technology HDD Holdings, 8.000%, 05/15/09, Callable 05/15/06 @ 104 3,684 3,826 SunGard Data Systems, Inc., 9.125%, 08/15/13, Callable 08/15/09 @ 104.56 (d) 2,490 2,633 SunGard Data Systems, Inc., 9.431%, 08/15/13, Callable 08/15/07 @ 103 (b) (d) (e) 1,865 1,968 ---------- 9,507 ---------- DIVERSIFIED FINANCIAL SERVICES (1.9%) AES Ironwood LLC, 8.857%, 11/30/25 929 1,040 AES Red Oak LLC, Ser A, 8.540%, 11/30/19 1,347 1,468 AES Red Oak LLC, Ser B, 9.200%, 11/30/29 2,200 2,475 BCP Crystal US Holdings Corp., 9.625%, 06/15/14, Callable 06/15/09 @ 104.81 3,410 3,777 CCM Merger, Inc., 8.000%, 08/01/13, Callable 08/01/09 @ 104 (d) (e) 1,470 1,463 Galaxy Entertainment Finance Co. Ltd., 9.655%, 12/15/10, Callable 12/15/08 @ 101.50 (b) (d) (e) 1,375 1,430 Galaxy Entertainment Finance Co. Ltd., 9.875%, 12/15/12, Callable 12/15/09 @ 104.94 (d) 3,340 3,478
- ------------------------------------------------------- Shares or Principal Amount($) Value($) - ------------------------------------------------------- DIVERSIFIED FINANCIAL SERVICES--CONTINUED Rainbow National Services LLC, 8.750%, 09/01/12, Callable 09/01/08 @ 104.38 (d) 6,838 7,282 Rainbow National Services LLC, 10.375%, 09/01/14, Callable 09/01/09 @ 105.19 (d) 1,485 1,663 ---------- 24,076 ---------- DIVERSIFIED OPERATIONS (0.6%) Leucadia National Corp., 7.000%, 08/15/13 4,190 4,201 Nell AF SARL, 8.375%, 08/15/15, Callable 08/15/10 @ 104.19 (d) (e) 3,710 3,682 ---------- 7,883 ---------- ELECTRIC (12.9%) AES Corp. (The), 8.750%, 05/15/13, Callable 05/15/08 @ 104.38 (d) 7,977 8,615 Allegheny Energy Supply Co. LLC, 7.800%, 03/15/11 1,475 1,569 Allegheny Energy Supply Co. LLC, 8.250%, 04/15/12 (d) 10,045 11,012 Aquila, Inc., 9.950%, 02/01/11 2,005 2,221 Aquila, Inc., 14.875%, 07/01/12 (e) 3,585 4,849 CMS Energy Corp., 9.875%, 10/15/07 1,220 1,298 CMS Energy Corp., 8.900%, 07/15/08 1,295 1,376 CMS Energy Corp., 7.500%, 01/15/09 3,505 3,606 Edison Mission Energy, 10.000%, 08/15/08 490 524 Edison Mission Energy, 7.730%, 06/15/09 4,000 4,100 Edison Mission Energy, 9.875%, 04/15/11 (e) 7,025 7,938 FirstEnergy Corp., Ser C, 7.375%, 11/15/31 (e) 1,050 1,166 FPL Energy National Wind, 6.125%, 03/25/19 (d) 2,261 2,197
See Notes to Financial Statements. 98 SCHEDULES OF PORTFOLIO INVESTMENTS STI CLASSIC FUNDS March 31, 2006 (Amounts in thousands, except Shares) SEIX HIGH YIELD FUND -- CONTINUED
- ------------------------------------------------------- Shares or Principal Amount($) Value($) - ------------------------------------------------------- ELECTRIC--CONTINUED FPL Energy Wind Funding LLC, 6.876%, 06/27/17 (d) 3,179 3,179 General Cable Corp., 9.500%, 11/15/10, Callable 11/15/07 @ 104.75 4,408 4,761 Inergy LP, 8.250%, 03/01/16, Callable 03/01/11 @ 104.13 (d) 2,295 2,352 IPALCO Enterprises, Inc., 8.375%, 11/14/08 5,000 5,225 Legrand Holding SA, 8.500%, 02/15/25 550 674 Midwest Generation LLC, 8.750%, 05/01/34, Callable 05/01/09 @ 104.38 (e) 686 743 Midwest Generation LLC, Ser A, 8.300%, 07/02/09 3,350 3,462 Midwest Generation LLC, Ser B, 8.560%, 01/02/16 9,701 10,457 Mirant Americas Generation LLC, 8.300%, 05/01/11 (e) 6,910 7,152 Mirant Americas Generation LLC, 8.500%, 10/01/21 425 432 Mirant Americas Generation LLC, 9.125%, 05/01/31 (e) 3,650 3,887 MSW Energy Holdings LLC, 8.500%, 09/01/10, Callable 09/01/07 @ 104.25 4,450 4,717 MSW Energy Holdings LLC, Ser B, 7.375%, 09/01/10, Callable 09/01/07 @ 103.69 6,341 6,531 Nevada Power Co., Ser A, 8.250%, 06/01/11 6,165 6,768 NRG Energy, Inc., 7.250%, 02/01/14, Callable 02/01/09 @ 107.25 2,850 2,896 NRG Energy, Inc., 7.375%, 02/01/16, Callable 02/01/11 @ 103.69 (e) 12,910 13,185
- ------------------------------------------------------- Shares or Principal Amount($) Value($) - ------------------------------------------------------- ELECTRIC--CONTINUED PSEG Energy Holdings LLC, 8.625%, 02/15/08 12,420 12,949 PSEG Energy Holdings LLC, 10.000%, 10/01/09 946 1,048 Sierra Pacific Power Co., 6.000%, 05/15/16 (d) 1,010 996 Sierra Pacific Power Co., Ser A, 8.000%, 06/01/08 250 260 Sierra Pacific Resources, 7.803%, 06/15/12, Callable 06/15/09 @ 103.90 2,089 2,193 Sithe/Independence Funding Corp., Ser A, 8.500%, 06/30/07 1,091 1,108 Sithe/Independence Funding Corp., Ser A, 9.000%, 12/30/13 6,300 6,803 TECO Energy, Inc., 6.680%, 05/01/10, Callable 05/01/07 @ 102 (b) 2,310 2,379 TECO Energy, Inc., 7.200%, 05/01/11 605 631 Tenaska Alabama Partners LP, 7.000%, 06/30/21 (d) 3,547 3,558 TXU Corp., Ser O, 4.800%, 11/15/09 3,340 3,209 TXU Corp., Ser P, 5.550%, 11/15/14 1,065 996 ---------- 163,022 ---------- ELECTRONICS (0.5%) Fisher Scientific Instrument, Inc., 6.125%, 07/01/15 3,555 3,470 Fisher Scientific International, Inc., 6.750%, 08/15/14, Callable 08/15/09 @ 103.38 2,440 2,480 ---------- 5,950 ---------- ENERGY -- ALTERNATIVE SERVICES (0.2%) Salton Sea Funding Corp., Ser C, 7.840%, 05/30/10 1,423 1,463 Salton Sea Funding Corp., Ser F, 7.475%, 11/30/18 1,150 1,215 ---------- 2,678 ----------
See Notes to Financial Statements. 99 SCHEDULES OF PORTFOLIO INVESTMENTS STI CLASSIC FUNDS March 31, 2006 (Amounts in thousands, except Shares) SEIX HIGH YIELD FUND -- CONTINUED
- ------------------------------------------------------- Shares or Principal Amount($) Value($) - ------------------------------------------------------- ENTERTAINMENT (1.6%) Capitol Records, Inc., 8.375%, 08/15/09 (d) 6,908 7,270 Isle of Capri Casinos, Inc., 9.000%, 03/15/12, Callable 03/15/07 @ 104.50 2,705 2,871 Seneca Gaming Corp., Ser B, 7.250%, 05/01/12, Callable 05/01/08 @ 103.63 1,570 1,586 Warner Music Group Corp., 7.375%, 04/15/14, Callable 04/15/09 @ 103.69 6,572 6,506 WMG Holdings Corp., 10.054%, 12/15/14, Callable 12/15/09 @ 104.75 (c) (e) (g) 2,063 1,519 ---------- 19,752 ---------- ENVIRONMENT CONTROL (0.3%) Allied Waste North America, Inc., Ser B, 8.500%, 12/01/08 1,055 1,109 Casella Waste Systems, Inc., 9.750%, 02/01/13, Callable 02/01/08 @ 104.88 2,825 3,023 ---------- 4,132 ---------- FOOD (2.3%) Dean Foods Co., 8.150%, 08/01/07 8,277 8,442 Del Monte Corp., 8.625%, 12/15/12, Callable 12/15/07 @ 104.31 1,877 1,983 Delhaize America, Inc., 8.125%, 04/15/11 2,730 2,947 Delhaize America, Inc., 9.000%, 04/15/31 615 711 Pinnacle Foods Holding Corp., 8.250%, 12/01/13, Callable 12/01/08 @ 104.12 2,150 2,129 Smithfield Foods, Inc., Ser B, 8.000%, 10/15/09 3,370 3,513
- ------------------------------------------------------- Shares or Principal Amount($) Value($) - ------------------------------------------------------- FOOD--CONTINUED Stater Brothers Holdings, Inc., 8.125%, 06/15/12, Callable 06/15/08 @ 104.06 1,960 1,958 Swift & Co., 10.125%, 10/01/09, Callable 10/01/06 @ 105.06 3,580 3,723 United Agri Products, Inc., 8.250%, 12/15/11, Callable 12/15/07 @ 104.12 3,055 3,177 ---------- 28,583 ---------- FOREST PRODUCTS & PAPER (1.7%) Appleton Papers, Inc., 8.125%, 06/15/11, Callable 06/15/08 @ 104.06 1,160 1,166 Appleton Papers, Inc., Ser B, 9.750%, 06/15/14, Callable 06/15/09 @ 104.88 4 4 Boise Cascade LLC, 7.475%, 10/15/12, Callable 10/15/06 @ 101 (b) 1,045 1,058 Boise Cascade LLC, 7.125%, 10/15/14, Callable 10/15/09 @ 103.56 425 409 Georgia-Pacific Corp., 8.125%, 05/15/11 11,134 11,579 Georgia-Pacific Corp., 9.500%, 12/01/11 6,219 6,810 ---------- 21,026 ---------- GAS (0.4%) Colorado Interstate Gas Co., 5.950%, 03/15/15 1,595 1,531 Colorado Interstate Gas Co., 6.800%, 11/15/15 (d) 3,890 3,957 ---------- 5,488 ---------- HEALTHCARE -- PRODUCTS (0.2%) Sybron Dental Specialties, Inc., 8.125%, 06/15/12, Callable 06/15/07 @ 104.06 2,592 2,735 ----------
See Notes to Financial Statements. 100 SCHEDULES OF PORTFOLIO INVESTMENTS STI CLASSIC FUNDS March 31, 2006 (Amounts in thousands, except Shares) SEIX HIGH YIELD FUND -- CONTINUED
- ------------------------------------------------------- Shares or Principal Amount($) Value($) - ------------------------------------------------------- HEALTHCARE -- SERVICES (3.3%) Coventry Health Care, Inc., 5.875%, 01/15/12 1,430 1,416 Coventry Health Care, Inc., 8.125%, 02/15/12, Callable 02/15/07 @ 104.06 5,478 5,752 Coventry Health Care, Inc., 6.125%, 01/15/15 1,115 1,109 DaVita, Inc., 6.625%, 03/15/13, Callable 03/15/09 @ 103.31 3,960 3,950 HCA, Inc., 5.500%, 12/01/09 7,415 7,224 HCA, Inc., 8.750%, 09/01/10 5,983 6,490 HCA, Inc., 7.875%, 02/01/11 6,882 7,242 HCA, Inc., 7.500%, 11/15/95 6,001 5,262 Triad Hospitals, Inc., 7.000%, 05/15/12, Callable 05/15/08 @ 103.50 2,790 2,790 ---------- 41,235 ---------- HOLDING COMPANIES -- DIVERSIFIED (0.0%) Leucadia National Corp., 8.650%, 01/15/27, Callable 01/15/07 @ 104.28 135 140 ---------- HOME BUILDERS (0.1%) Pulte Homes, Inc., 8.125%, 03/01/11 540 583 Pulte Homes, Inc., 7.875%, 08/01/11 695 751 ---------- 1,334 ---------- INSURANCE (0.8%) AFC Capital Trust I, Ser B, 8.207%, 02/03/27 4,252 4,405 Markel Capital Trust I, Ser B, 8.710%, 01/01/46, Callable 01/01/07 @ 104.36 4,025 4,203
- ------------------------------------------------------- Shares or Principal Amount($) Value($) - ------------------------------------------------------- INSURANCE--CONTINUED Markel Corp., 7.350%, 08/15/34 1,060 1,093 UnumProvident Corp., 7.625%, 03/01/11 870 923 ---------- 10,624 ---------- LEISURE TIME (0.2%) Royal Caribbean Cruises Ltd., 8.750%, 02/02/11 1,705 1,882 Royal Caribbean Cruises Ltd., 6.875%, 12/01/13 1,140 1,172 ---------- 3,054 ---------- LODGING (5.8%) Aztar Corp., 9.000%, 08/15/11, Callable 08/15/06 @ 104.50 1,410 1,490 Boyd Gaming Corp., 8.750%, 04/15/12, Callable 04/15/07 @ 104.38 (e) 3,815 4,073 Boyd Gaming Corp., 7.750%, 12/15/12, Callable 12/15/07 @ 103.88 (e) 3,560 3,729 Caesars Entertainment, Inc., 9.375%, 02/15/07 1,855 1,913 Caesars Entertainment, Inc., 8.875%, 09/15/08 1,700 1,819 Caesars Entertainment, Inc., 7.875%, 03/15/10 300 319 Caesars Entertainment, Inc., 8.125%, 05/15/11 (e) 8,611 9,364 Chumash Casino & Resort Enterprise, 9.000%, 07/15/10, Callable 07/15/06 @ 104.50 (d) 3,073 3,250 Gaylord Entertainment Co., 8.000%, 11/15/13, Callable 11/15/08 @ 104 1,530 1,595 Gaylord Entertainment Co., 6.750%, 11/15/14, Callable 11/15/09 @ 103.38 1,360 1,326 Hilton Hotels Corp., 8.250%, 02/15/11 4,165 4,508 Mandalay Resort Group, Ser B, 10.250%, 08/01/07 10,956 11,531
See Notes to Financial Statements. 101 SCHEDULES OF PORTFOLIO INVESTMENTS STI CLASSIC FUNDS March 31, 2006 (Amounts in thousands, except Shares) SEIX HIGH YIELD FUND -- CONTINUED
- ------------------------------------------------------- Shares or Principal Amount($) Value($) - ------------------------------------------------------- LODGING--CONTINUED MGM Mirage, Inc., 9.750%, 06/01/07 6,965 7,252 MGM Mirage, Inc., 8.500%, 09/15/10 13,794 14,759 Station Casinos, Inc., 6.000%, 04/01/12, Callable 04/01/08 @ 102.25 4,267 4,208 Wynn Las Vegas LLC, 6.625%, 12/01/14, Callable 12/01/09 @ 103.31 1,385 1,345 ---------- 72,481 ---------- MACHINERY DIVERSIFIED (0.6%) Case New Holland, Inc., 9.250%, 08/01/11, Callable 08/01/07 @ 104.62 1,355 1,446 Case New Holland, Inc., 7.125%, 03/01/14, Callable 03/01/10 @ 103.56 (d) 1,295 1,279 Chart Industries, Inc., 9.125%, 10/15/15, Callable 10/15/10 @ 104.56 (d) 2,125 2,194 NMGH Holding Co., 10.000%, 05/15/09, Callable 05/15/06 @ 105 2,685 2,820 ---------- 7,739 ---------- MEDIA (9.5%) AT&T Broadband, 8.375%, 03/15/13 1,867 2,100 Block Communications, Inc., 8.250%, 12/15/15, Callable 12/15/10 @ 104.13 (d) 1,715 1,681 Cablevision Systems Corp., Ser B, 8.000%, 04/15/12 (e) 2,555 2,491 CanWest Media, Inc., 8.000%, 09/15/12, Callable 09/15/11 @ 100 4,527 4,640 Clear Channel Communications, Inc., 7.650%, 09/15/10 1,635 1,718
- ------------------------------------------------------- Shares or Principal Amount($) Value($) - ------------------------------------------------------- MEDIA--CONTINUED Clear Channel Communications, Inc., 6.250%, 03/15/11 1,500 1,488 CSC Holdings, Inc., 7.000%, 04/15/12 (d) 1,330 1,300 CSC Holdings, Inc., Ser B, 8.125%, 07/15/09 (e) 5,070 5,241 CSC Holdings, Inc., Ser B, 8.125%, 08/15/09 2,025 2,091 Dex Media East Finance Co., 9.875%, 11/15/09, Callable 11/15/06 @ 104.94 1,270 1,356 Dex Media East Finance Co., 12.125%, 11/15/12, Callable 11/15/07 @ 106.06 3,970 4,536 Dex Media West Finance, Ser B, 9.875%, 08/15/13, Callable 08/15/08 @ 104.94 6,200 6,859 DirecTV Holdings LLC, 8.375%, 03/15/13, Callable 03/15/08 @ 104.19 17,130 18,285 EchoStar DBS Corp., 5.750%, 10/01/08 4,600 4,554 EchoStar DBS Corp., 6.375%, 10/01/11 2,565 2,507 EchoStar DBS Corp., 7.125%, 02/01/16, Callable 10/01/06 @ 100 (d) 9,460 9,306 Gray Television, Inc., 9.250%, 12/15/11, Callable 12/15/06 @ 104.62 5,662 6,002 Houghton Mifflin Co., 8.250%, 02/01/11, Callable 02/01/07 @ 104.12 3,745 3,876 Kabel Deutschland Gmbh, 10.625%, 07/01/14, Callable 07/01/09 @ 105.31 (d) 3,775 4,030 Liberty Media Corp., 7.750%, 07/15/09 270 283
See Notes to Financial Statements. 102 SCHEDULES OF PORTFOLIO INVESTMENTS STI CLASSIC FUNDS March 31, 2006 (Amounts in thousands, except Shares) SEIX HIGH YIELD FUND -- CONTINUED
- ------------------------------------------------------- Shares or Principal Amount($) Value($) - ------------------------------------------------------- MEDIA--CONTINUED Liberty Media Corp., 7.875%, 07/15/09 2,600 2,736 LIN Television Corp., Ser B, 6.500%, 05/15/13, Callable 05/15/08 @ 103.25 2,305 2,167 Morris Publishing Group LLC, 7.000%, 08/01/13, Callable 08/01/08 @ 103.50 1,010 953 Quebecor Media, Inc., 7.750%, 03/15/16, Callable 03/15/11 @ 103.875 (d) 3,525 3,622 Quebecor World Capital Corp., 8.750%, 03/15/16, Callable 03/15/11 @ 104.375 (d) 2,020 1,970 Radio One, Inc., Ser B, 8.875%, 07/01/11, Callable 07/01/06 @ 104.44 2,900 3,045 Readers-Digest Association, Inc., 6.500%, 03/01/11, Callable 03/01/08 @ 103.25 6,176 6,161 Rogers Cable, Inc., 7.875%, 05/01/12 3,761 4,024 Rogers Cable, Inc., 6.250%, 06/15/13 270 267 Rogers Cable, Inc., 8.750%, 05/01/32 920 1,090 Shaw Communications, Inc., 8.250%, 04/11/10 1,455 1,546 Sinclair Broadcast Group, Inc., 8.750%, 12/15/11, Callable 12/15/06 @ 104.375 3,350 3,522 Sinclair Broadcast Group, Inc., 8.000%, 03/15/12, Callable 03/15/07 @ 104 3,750 3,825 ---------- 119,272 ----------
- ------------------------------------------------------- Shares or Principal Amount($) Value($) - ------------------------------------------------------- MISCELLANEOUS MANUFACTURER (0.3%) Koppers, Inc., 9.875%, 10/15/13, Callable 10/15/08 @ 104.94 2,201 2,410 Samsonite Corp., 8.875%, 06/01/11, Callable 06/01/08 @ 104.44 1,180 1,248 ---------- 3,658 ---------- OFFICE/BUSINESS EQUIPMENT (1.7%) Xerox Capital Trust I, 8.000%, 02/01/27, Callable 02/01/07 @ 102.45 (e) 1,450 1,501 Xerox Corp., 9.750%, 01/15/09 14,129 15,453 Xerox Corp., 7.125%, 06/15/10 1,440 1,490 Xerox Corp., 6.875%, 08/15/11 3,415 3,505 ---------- 21,949 ---------- OIL & GAS (11.1%) Chesapeake Energy Corp., 7.500%, 09/15/13, Callable 09/15/08 @ 103.75 11,732 12,260 Chesapeake Energy Corp., 7.500%, 06/15/14, Callable 06/15/09 @ 103.75 7,384 7,735 Chesapeake Energy Corp., 7.750%, 01/15/15, Callable 01/15/08 @ 103.88 (e) 2,770 2,895 Chesapeake Energy Corp., 6.375%, 06/15/15, Callable 12/15/09 @ 103.19 910 895 Chesapeake Energy Corp., 6.500%, 08/15/17 8,655 8,547 Chesapeake Energy Corp., 6.875%, 11/15/20 (d) 1,830 1,844 Compagnie Generale de Geophysique SA, 7.500%, 05/15/15, Callable 05/15/10 @ 103.75 (d) 1,090 1,123
See Notes to Financial Statements. 103 SCHEDULES OF PORTFOLIO INVESTMENTS STI CLASSIC FUNDS March 31, 2006 (Amounts in thousands, except Shares) SEIX HIGH YIELD FUND -- CONTINUED
- ------------------------------------------------------- Shares or Principal Amount($) Value($) - ------------------------------------------------------- OIL & GAS--CONTINUED Compagnie Gererale de Geophysique SA, 7.500%, 05/15/15, Callable 05/15/10 @ 103.75 1,890 1,947 Compton Petroleum Finance Corp., 7.625%, 12/01/13, Callable 12/01/09 @ 103.813 (d) 2,060 2,060 Compton Petroleum Finance Corp., 7.625%, 12/01/13, Callable 12/01/09 @ 103.813 2,915 2,915 Denbury Resources, Inc., 7.500%, 12/15/15, Callable 12/15/10 @ 103.75 1,170 1,217 Encore Acquisition Co., 6.000%, 07/15/15, Callable 07/15/10 @ 103 4,925 4,593 Encore Acquisition Co., 7.250%, 12/01/17, Callable 12/01/10 @ 103.63 745 747 Enterprise Products Operating LP, 7.500%, 02/01/11 4,415 4,713 Enterprise Products Operating LP, Ser B, 5.600%, 10/15/14 8,080 7,835 Enterprise Products Operating LP, Ser B, 5.000%, 03/01/15 5,325 4,941 Enterprise Products Operating LP, Ser B, 6.650%, 10/15/34 2,450 2,434 EXCO Resources, Inc., 7.250%, 01/15/11, Callable 01/15/07 @ 105.44 2,883 2,869 Forest Oil Corp., 8.000%, 06/15/08 4,684 4,860 Forest Oil Corp., 8.000%, 12/15/11 3,913 4,206 Kerr-McGee Corp., 6.875%, 09/15/11 14,630 15,295 Kerr-McGee Corp., 6.950%, 07/01/24 8,695 8,845
- ------------------------------------------------------- Shares or Principal Amount($) Value($) - ------------------------------------------------------- OIL & GAS--CONTINUED Pioneer Natural Resource Co., 5.875%, 07/15/16 4,025 3,814 Premcor Refining Group, Inc. (The), 9.250%, 02/01/10, Callable 02/01/07 @ 104.63 6,702 7,231 Premcor Refining Group, Inc. (The), 6.750%, 02/01/11 2,737 2,852 Premcor Refining Group, Inc. (The), 6.125%, 05/01/11 911 926 Quicksilver Resources, Inc., 7.125%, 04/01/16, Callable 04/01/11 @ 103.56 3,255 3,214 Range Resources Corp., 7.375%, 07/15/13, Callable 07/15/08 @ 103.69 1,650 1,708 Tesoro Corp., 6.625%, 11/01/15, Callable 11/01/10 @ 103.31 (d) 4,355 4,311 Western Oil Sands, Inc., 8.375%, 05/01/12 9,459 10,499 ---------- 139,331 ---------- OIL & GAS SERVICES (0.4%) Hanover Compressor Co., 8.625%, 12/15/10, Callable 12/15/07 @ 104.31 1,795 1,883 Hanover Equipment Trust 01, Ser B, 8.750%, 09/01/11, Callable 09/01/06 @ 104.38 3,571 3,736 ---------- 5,619 ---------- PACKAGING & CONTAINERS (1.2%) Ball Corp., 6.875%, 12/15/12, Callable 12/15/07 @ 103.44 450 460 Ball Corp., 6.625%, 03/15/18, Callable 03/15/11 @ 103.31 2,565 2,552
See Notes to Financial Statements. 104 SCHEDULES OF PORTFOLIO INVESTMENTS STI CLASSIC FUNDS March 31, 2006 (Amounts in thousands, except Shares) SEIX HIGH YIELD FUND -- CONTINUED
- ------------------------------------------------------- Shares or Principal Amount($) Value($) - ------------------------------------------------------- PACKAGING & CONTAINERS--CONTINUED Crown Americas, Inc., 7.625%, 11/15/13, Callable 11/15/09 @ 103.81 (d) (e) 3,845 3,980 Crown Cork & Seal Co., Inc., 8.000%, 04/15/23, Callable 04/15/06 @ 102.67 (e) 780 751 Owens-Brockway Glass Container, Inc., 8.875%, 02/15/09, Callable 02/15/06 @ 104.44 3,910 4,071 Silgan Holdings, Inc., 6.750%, 11/15/13, Callable 11/15/08 @ 103.38 3,000 3,000 ---------- 14,814 ---------- PIPELINES (6.6%) Atlas Pipeline Partners LP, 8.125%, 12/15/15, Callable 12/15/10 @ 104.06 (d) 1,575 1,642 Copano Energy LLC, 8.125%, 03/01/16, Callable 03/01/11 @ 104.0625 (d) 1,290 1,335 Duke Capital LLC, 6.250%, 02/15/13 1,460 1,497 Dynegy Holdings, Inc., 9.875%, 07/15/10, Callable 07/15/07 @ 104.94 (d) 7,890 8,678 Dynegy Holdings, Inc., 10.125%, 07/15/13, Callable 07/15/08 @ 105.06 (d) 5,104 5,848 El Paso Natural Gas Co., 8.625%, 01/15/22 3,800 4,324 El Paso Natural Gas Co., 8.375%, 06/15/32 3,760 4,251 El Paso Natural Gas Co., Ser A, 7.625%, 08/01/10, Callable 08/01/07 @ 103.81 8,565 8,929
- ------------------------------------------------------- Shares or Principal Amount($) Value($) - ------------------------------------------------------- PIPELINES--CONTINUED MarkWest Energy Partners LP, Ser B, 6.875%, 11/01/14, Callable 11/01/09 @ 103.44 2,080 1,966 Southern Natural Gas Co., 6.125%, 09/15/08 1,950 1,945 Southern Natural Gas Co., 8.000%, 03/01/32 2,985 3,274 Targa Resources, Inc., 8.500%, 11/01/13, Callable 11/01/09 @ 104.25 (d) (e) 2,355 2,449 Tennessee Gas Pipeline Co., 7.500%, 04/01/17 645 687 Tennessee Gas Pipeline Co., 8.375%, 06/15/32 1,480 1,689 Transcontinental Gas Pipe Line Corp., Ser B, 8.875%, 07/15/12 1,015 1,157 Williams Cos., Inc. (The), 7.125%, 09/01/11 (e) 16,590 17,066 Williams Cos., Inc. (The), 8.125%, 03/15/12 (e) 6,220 6,679 Williams Cos., Inc. (The), 7.750%, 06/15/31 585 620 Williams Cos., Inc. (The), 8.750%, 03/15/32 7,619 8,914 ---------- 82,950 ---------- REAL ESTATE (0.9%) American Real Estate Partners LP, 7.125%, 02/15/13, Callable 02/15/09 @ 103.56 4,720 4,650 CB Richard Ellis Group, Inc., 9.750%, 05/15/10, Callable 05/15/07 @ 104.88 2,466 2,669 CB Richard Ellis Group, Inc., 11.250%, 06/15/11, Callable 06/15/06 @ 105.63 3,265 3,485 ---------- 10,804 ---------- REITS (2.5%) Host Marriott Corp., Ser G, 9.250%, 10/01/07 2,898 3,036
See Notes to Financial Statements. 105 SCHEDULES OF PORTFOLIO INVESTMENTS STI CLASSIC FUNDS March 31, 2006 (Amounts in thousands, except Shares) SEIX HIGH YIELD FUND -- CONTINUED
- ------------------------------------------------------- Shares or Principal Amount($) Value($) - ------------------------------------------------------- REITS--CONTINUED Host Marriott Corp., Ser I, 9.500%, 01/15/07 7,545 7,752 Omega Healthcare Investors, Inc., 7.000%, 04/01/14, Callable 04/01/09 @ 103.50 2,270 2,293 Omega Healthcare Investors, Inc., 7.000%, 04/01/14, Callable 04/01/09 @ 103.50 (d) 2,700 2,727 Omega Healthcare Investors, Inc., 7.000%, 01/15/16, Callable 01/15/11 @ 103.50 (d) 2,105 2,105 Rouse Co., 3.625%, 03/15/09 835 776 Rouse Co. (The), 8.000%, 04/30/09 3,725 3,889 Rouse Co. (The), 7.200%, 09/15/12 2,400 2,489 Ventas Realty LP, 6.750%, 06/01/10 1,825 1,843 Ventas Realty LP, 6.625%, 10/15/14, Callable 10/15/09 @ 103.31 1,505 1,505 Ventas Realty LP, 7.125%, 06/01/15, Callable 06/01/10 @ 103.56 1,565 1,608 Ventas Realty LP, 6.500%, 06/01/16, Callable 06/01/11 @ 103.25 (d) 990 985 ---------- 31,008 ---------- RETAIL (1.0%) AmeriGas Partners LP, 7.250%, 05/20/15, Callable 05/20/10 @ 103.63 (e) 2,445 2,445 J.C. Penney Co., Inc., 8.000%, 03/01/10 1,065 1,147 J.C. Penney Co., Inc., 9.000%, 08/01/12 1,245 1,426 Rite Aid Corp., 8.125%, 05/01/10, Callable 05/01/07 @ 104.06 625 638
- ------------------------------------------------------- Shares or Principal Amount($) Value($) - ------------------------------------------------------- RETAIL--CONTINUED Rite Aid Corp., 9.500%, 02/15/11, Callable 02/15/07 @ 104.75 930 981 Rite Aid Corp., 7.500%, 01/15/15, Callable 01/15/10 @ 103.75 (e) 2,630 2,551 Suburban Propane Partners LP, 6.875%, 12/15/13, Callable 12/15/08 @ 103.44 1,655 1,589 United Auto Group, Inc., 9.625%, 03/15/12, Callable 03/15/07 @ 104.81 (e) 1,925 2,038 ---------- 12,815 ---------- SEMICONDUCTORS (1.0%) Advanced Micro Devices, Inc., 7.750%, 11/01/12, Callable 11/01/08 @ 103.88 1,069 1,118 Avago Technologies Finance Ltd., 10.320%, 06/01/13, Callable 12/01/07 @ 102 (b) (d) 755 789 Avago Technologies, Inc., 10.125%, 12/01/13, Callable 12/01/09 @ 105.06 (d) 1,500 1,611 Freescale Semiconductor, Inc., 7.350%, 07/15/09, Callable 07/15/06 @ 102 (b) (e) 2,933 3,006 Freescale Semiconductor, Inc., 6.875%, 07/15/11, Callable 07/15/08 @ 103.44 2,685 2,745 Freescale Semiconductor, Inc., 7.125%, 07/15/14, Callable 07/15/09 @ 103.56 3,525 3,658 ---------- 12,927 ----------
See Notes to Financial Statements. 106 SCHEDULES OF PORTFOLIO INVESTMENTS STI CLASSIC FUNDS March 31, 2006 (Amounts in thousands, except Shares) SEIX HIGH YIELD FUND -- CONTINUED
- ------------------------------------------------------- Shares or Principal Amount($) Value($) - ------------------------------------------------------- TELECOMMUNICATIONS (9.8%) American Tower Corp., 7.500%, 05/01/12, Callable 05/01/08 @ 103.75 500 524 AT&T Corp., 9.750%, 11/15/31 4,855 5,797 Citizens Communications Co., 7.625%, 08/15/08 7,430 7,690 Citizens Communications Co., 9.250%, 05/15/11 12,010 13,181 Citizens Communications Co., 6.250%, 01/15/13 1,730 1,682 GCI, Inc., 7.250%, 02/15/14, Callable 02/15/09 @ 103.62 2,390 2,348 Inmarsat Finance II PLC, 7.522%, 11/15/12, Callable 11/15/08 @ 105.19 (c) (g) 2,630 2,236 Inmarsat Group Ltd., 7.625%, 06/30/12, Callable 03/01/08 @ 103.81 4,733 4,851 Intelsat Bermuda Ltd., 8.250%, 01/15/13, Callable 01/15/09 @ 104.13 10,360 10,541 National Cable PLC, 8.750%, 04/15/14, Callable 04/15/09 @ 104.38 (e) 6,314 6,472 PanAmSat Holding Corp., 11.018%, 11/01/14, Callable 11/01/09 @ 105.19 (c) (g) 2,710 1,951 PanAmSat Holdings Corp., 9.000%, 08/15/14, Callable 08/15/09 @ 104.50 4,675 4,920 Qwest Communications International, Inc., 8.249%, 02/15/09, Callable 02/15/06 @ 102 (b) 3,360 3,436
- ------------------------------------------------------- Shares or Principal Amount($) Value($) - ------------------------------------------------------- TELECOMMUNICATIONS--CONTINUED Qwest Communications International, Inc., 7.250%, 02/15/11, Callable 02/15/08 @ 103.62 (e) 2,150 2,204 Qwest Corp., 7.875%, 09/01/11 14,190 15,147 Qwest Corp., 8.875%, 03/15/12 865 967 Qwest Corp., 8.160%, 06/15/13 (b) (e) 3,000 3,300 Qwest Corp., 7.625%, 06/15/15 2,900 3,103 Rogers Wireless, Inc., 8.035%, 12/15/10, Callable 12/15/06 @ 102 (b) 2,295 2,370 Rogers Wireless, Inc., 9.625%, 05/01/11 1,358 1,560 Rogers Wireless, Inc., 7.250%, 12/15/12 7,435 7,835 Rogers Wireless, Inc., 6.375%, 03/01/14 10,975 10,948 Rogers Wireless, Inc., 7.500%, 03/15/15 (e) 600 644 Rogers Wireless, Inc., 9.750%, 06/01/16 3,770 4,599 U.S. West Communications, 5.625%, 11/15/08 (e) 2,255 2,238 Valor Telecommunications Enterprise LLC, 7.750%, 02/15/15, Callable 02/15/10 @ 103.88 2,580 2,703 ---------- 123,247 ---------- TRANSPORTATION (0.5%) CHC Helicopter Corp., 7.375%, 05/01/14, Callable 05/01/09 @ 103.69 3,657 3,730
See Notes to Financial Statements. 107 SCHEDULES OF PORTFOLIO INVESTMENTS STI CLASSIC FUNDS March 31, 2006 (Amounts in thousands, except Shares) SEIX HIGH YIELD FUND -- CONCLUDED
- ------------------------------------------------------- Shares or Principal Amount($) Value($) - ------------------------------------------------------- TRANSPORTATION--CONTINUED Petroleum Helicopters, Inc., Ser B, 9.375%, 05/01/09, Callable 05/01/06 @ 104.69 2,435 2,554 ---------- 6,284 ---------- Total Corporate Bonds (Cost $1,145,690) 1,137,565 ---------- U.S. TREASURY OBLIGATIONS (3.3%) U.S. TREASURY NOTES (3.3%) 4.500%, 11/15/15 (e) 43,030 41,756 ---------- Total U.S. Treasury Obligations (Cost $42,835) 41,756 ---------- SHORT-TERM INVESTMENTS (9.0%) CSFB Enhanced Liquidity Portfolio, 5.006% (f) 112,889,480 112,889 ---------- Total Short-Term Investments (Cost $112,889) 112,889 ---------- MONEY MARKET FUNDS (0.1%) Federated Prime Obligation Money Market Fund 1,187,671 1,188 ---------- Total Money Market Funds (Cost $1,188) 1,188 ---------- REPURCHASE AGREEMENT (2.0%) Lehman Brothers, Inc., 4.755%, dated 03/31/06, to be repurchased on 04/03/06, repurchase price $25,706,484 (collateralized by U.S. Government Agencies, DN, due 12/01/34; total market value $26,211,309) 25,696 25,696 ---------- Total Repurchase Agreement (Cost $25,696) 25,696 ---------- Total Investments (Cost $1,386,315) (a)-- 109.3% 1,376,885 Liabilities in excess of other assets -- (9.3)% (117,101) ---------- Net Assets -- 100.0% $1,259,784 ==========
- --------------- (a)Cost for federal income tax purposes is $1,386,632 (amount in thousands). Unrealized appreciation/ (depreciation) on a tax basis is as follows (amounts in thousands): Unrealized Appreciation................. $ 9,017 Unrealized Depreciation................. (18,765) -------- Unrealized Appreciation (Depreciation)........................ $ (9,748) ========
(b)Variable rate security. Rate presented represents rate in effect at March 31, 2006. Maturity date represents actual maturity date. (c)Rate represents the effective yield at purchase. (d)Rule 144A, Section 4(2) or other security which is restricted as to resale to institutional investors. The Fund's advisor has deemed this security to be liquid based upon procedures approved by the Board of Trustees. (e)This security or a partial position of the security was on loan at March 31, 2006. The total value of securities on loan at March 31, 2006 in thousands was $107,738. (f)This security was purchased with cash collateral held from securities lending. (g)Step bond. (h)This security has not settled as of March 31, 2006 and thus does not have a rate in effect. The security does not have a stated settlement date and will receive a rate upon settling with the custodian. DN -- Discount Note LLC -- Limited Liability Corporation LP -- Limited Partnership PLC -- Public Limited Company REIT -- Real Estate Investment Trust Ser -- Series See Notes to Financial Statements. 108 SCHEDULES OF PORTFOLIO INVESTMENTS STI CLASSIC FUNDS March 31, 2006 (Amounts in thousands, except Shares) SHORT-TERM BOND FUND
- ------------------------------------------------------- Shares or Principal Amount($) Value($) - ------------------------------------------------------- ASSET BACKED SECURITIES (6.8%) AUTOMOBILE ABS (5.6%) Capital Auto Receivables Asset Trust, Ser 2006-1, Cl A3, 5.030%, 10/15/09 3,315 3,301 Capital One Prime Auto Receivable Trust, Ser 2005-1, Cl A3, 4.320%, 08/15/09 4,260 4,214 Daimler Chrysler Master Owner Trust, Ser 2005-C, Cl A, 4.770%, 12/15/10 (b) 3,125 3,127 Honda Auto Receivables Owner Trust, Ser 2005-6, Cl A3, 4.850%, 10/19/09 2,520 2,506 Nissan Auto Receivables Owner Trust, Ser 2003-B, Cl A4, 2.050%, 03/16/09 1,625 1,589 USAA Auto Owner Trust, Ser 2004-1, Cl A3, 2.060%, 04/15/08 1,886 1,867 -------- 16,604 -------- CREDIT CARD ABS (1.2%) Citibank Credit Card Issuance Trust, 2.550%, 01/20/09 3,525 3,452 -------- Total Asset Backed Securities (Cost $20,195) 20,056 -------- COLLATERALIZED MORTGAGE OBLIGATIONS (8.8%) Adjustable Rate Mortgage Trust, Ser 2005-1, Cl 2A22, 4.624%, 05/25/35 (b) 1,640 1,590 Bear Stearns Commercial Mortgage Securities, Ser 2005-T20, Cl A1, 4.940%, 10/12/42 1,928 1,908 Countrywide Home Loans, Inc., Ser 2004-21, Cl A10, 6.000%, 11/25/34 1,529 1,515 First Horizon Alternative Mortgage Securities, Ser 2005-AA3, Cl 2A1, 5.185%, 05/25/35 (b) 2,728 2,700 Indymac Inda Mortgage Loan Trust, Ser 2005-AR1, Cl 2A1, 5.138%, 11/25/35 (b) 5,990 5,870
- ------------------------------------------------------- Shares or Principal Amount($) Value($) - ------------------------------------------------------- COLLATERALIZED MORTGAGE OBLIGATIONS--CONTINUED J.P. Morgan Chase Commercial Mortgage Securities, Ser 2005-LDP1, Cl A2, 4.625%, 03/15/46 2,395 2,335 Morgan Stanley Capital I, Ser 2006-HQ8, Cl A1, 5.124%, 03/12/44 2,300 2,288 Wachovia Bank Commercial Mortgage Trust, Ser 2005-C16, Cl A2, 4.380%, 10/15/41 3,635 3,515 Washington Mutual, Ser 2005-AR4, Cl A1, 3.624%, 04/25/35 (b) 1,131 1,127 Wells Fargo Mortgage Backed Securities Trust, Ser 2004-S, Cl A5, 3.540%, 09/25/34 (b) 3,225 3,067 -------- Total Collateralized Mortgage Obligations (Cost $26,441) 25,915 -------- COMMERCIAL PAPERS (1.7%) DIVERSIFIED FINANCIAL SERVICES (1.7%) Goldman Sachs Group, Inc. (The), 4.803%, 04/04/06 (e) 2,500 2,499 UBS Financial Delaware LLC, 4.832%, 04/03/06 (e) 2,450 2,449 -------- Total Commercial Papers (Cost $4,948) 4,948 -------- CORPORATE BONDS (28.7%) BANKS (3.6%) Bank One Corp., 7.600%, 05/01/07 3,441 3,517 BankBoston Corp., 6.500%, 12/19/07 3,815 3,885 Wachovia Corp., 6.375%, 02/01/09 3,300 3,379 -------- 10,781 -------- COMMERCIAL SERVICES (0.4%) ERAC USA Finance Co., 7.350%, 06/15/08 (f) 1,125 1,168 -------- COSMETICS/PERSONAL CARE (0.3%) Gillette Co. (The), 3.500%, 10/15/07, Callable 04/15/06 @ 100 873 852 --------
See Notes to Financial Statements. 109 SCHEDULES OF PORTFOLIO INVESTMENTS STI CLASSIC FUNDS March 31, 2006 (Amounts in thousands, except Shares) SHORT-TERM BOND FUND -- CONTINUED
- ------------------------------------------------------- Shares or Principal Amount($) Value($) - ------------------------------------------------------- DIVERSIFIED FINANCIAL SERVICES (16.1%) Bear Stearns & Co., Inc. (The), 5.700%, 01/15/07 4,715 4,731 Capital One Financial Corp., 8.750%, 02/01/07 770 791 CIT Group, Inc., 4.000%, 05/08/08 890 866 CIT Group, Inc., 4.250%, 02/01/10 2,340 2,240 Credit Suisse First Boston USA, Inc., 6.500%, 06/01/08 2,455 2,509 General Electric Capital Corp., 4.125%, 03/04/08 4,765 4,668 General Electric Capital Corp., 4.875%, 10/21/10 1,700 1,665 Golden West Financial Corp., 4.125%, 08/15/07 3,035 2,988 Goldman Sachs Group, Inc. (The), 7.350%, 10/01/09 3,510 3,720 HSBC Finance Corp., 4.125%, 03/11/08 3,400 3,327 John Deere Capital Corp., 3.900%, 01/15/08 3,130 3,055 Lehman Brothers, Inc., 6.250%, 05/15/06 2,720 2,723 Merrill Lynch & Co., Inc., 4.831%, 10/27/08 1,700 1,683 Merrill Lynch & Co., Inc., 4.790%, 08/04/10 1,725 1,677 Morgan Stanley, 5.800%, 04/01/07 3,175 3,190 Salomon Smith Barney Holdings, 6.500%, 02/15/08 3,705 3,787 SLM Corp., Ser A, 5.110%, 09/15/06 (b) 4,040 4,045 -------- 47,665 -------- ELECTRIC (0.6%) American Electric Power Co., Inc., Ser A, 6.125%, 05/15/06 339 339 Commonwealth Edison, Co., 7.625%, 01/15/07 1,400 1,421 -------- 1,760 -------- LODGING (0.5%) Park Place Entertainment, 8.500%, 11/15/06 1,390 1,413 --------
- ------------------------------------------------------- Shares or Principal Amount($) Value($) - ------------------------------------------------------- MEDIA (0.4%) Time Warner, Inc., 6.150%, 05/01/07 1,215 1,224 -------- MISCELLANEOUS MANUFACTURER (1.0%) Honeywell International, Inc., 7.500%, 03/01/10 2,850 3,059 -------- OIL & GAS (0.5%) Devon Energy Corp., 2.750%, 08/01/06 1,450 1,437 -------- PIPELINES (0.3%) Arkla, Inc., 8.900%, 12/15/06 860 879 -------- REITS (0.5%) Simon Property Group LP, 6.375%, 11/15/07 1,500 1,522 -------- RETAIL (1.0%) Home Depot, Inc. (The), 5.200%, 03/01/11 3,055 3,036 -------- TELECOMMUNICATIONS (3.5%) Deutsche Telekom AG, 5.120%, 03/23/09 (b) 2,140 2,141 SBC Communications, Inc., 4.951%, 11/14/08 (b) 2,180 2,184 SBC Communications, Inc., 4.125%, 09/15/09 790 755 Telecom Italia Capital, 4.000%, 11/15/08 1,380 1,330 Verizon Global Funding Corp., 6.125%, 06/15/07 1,753 1,768 Verizon Wireless, Inc., 5.375%, 12/15/06 2,145 2,145 -------- 10,323 -------- Total Corporate Bonds (Cost $86,296) 85,119 -------- U.S. GOVERNMENT AGENCIES (20.6%) FANNIE MAE (3.9%) 2.625%, 01/19/07 4,625 4,535 4.200%, 03/24/08 (c) 3,425 3,364 3.810%, 12/01/08 (b) 3,600 3,512 -------- 11,411 -------- FEDERAL HOME LOAN BANK (2.1%) 3.750%, 01/16/07 (c) 6,135 6,070 -------- FREDDIE MAC (14.6%) 2.375%, 02/15/07 1,875 1,832 3.750%, 08/03/07 (c) 8,390 8,243
See Notes to Financial Statements. 110 SCHEDULES OF PORTFOLIO INVESTMENTS STI CLASSIC FUNDS March 31, 2006 (Amounts in thousands, except Shares) SHORT-TERM BOND FUND -- CONTINUED
- ------------------------------------------------------- Shares or Principal Amount($) Value($) - ------------------------------------------------------- FREDDIE MAC--CONTINUED 4.500%, 08/22/07, Callable 08/22/06 @ 100 (c) 13,520 13,390 5.050%, 12/08/08, Callable 12/08/06 @ 100 5,885 5,862 4.625%, 12/19/08 3,600 3,559 5.750%, 03/15/09 (c) 4,240 4,314 5.000%, 11/01/10, Callable 11/01/07 @ 100 6,280 6,176 -------- 43,376 -------- Total U.S. Government Agencies (Cost $61,607) 60,857 -------- U.S. GOVERNMENT AGENCY MORTGAGES (14.4%) FANNIE MAE (8.8%) 7.030%, 08/01/07 695 704 6.805%, 11/01/07 2,995 3,017 6.070%, 10/01/08 2,127 2,136 6.575%, 07/01/09 2,417 2,475 6.850%, 08/01/09 3,443 3,552 6.955%, 10/01/10 (b) 2,838 2,978 4.000%, 12/01/14 3,875 3,663 5.000%, 11/25/26 2,531 2,510 5.626%, 09/01/33 (b) 1,238 1,246 5.589%, 10/01/33 (b) 1,498 1,531 4.337%, 03/01/34 (b) 2,500 2,440 -------- 26,252 -------- FREDDIE MAC (5.2%) 4.000%, 07/01/08 2,131 2,083 3.750%, 12/15/11 2,104 2,037 4.500%, 08/15/19 119 116 5.000%, 12/15/20 3,663 3,646 4.500%, 10/15/28 2,806 2,734 4.273%, 03/01/34 (b) 2,648 2,589 4.972%, 04/01/34 (b) 2,119 2,094 -------- 15,299 --------
- ------------------------------------------------------- Shares or Principal Amount($) Value($) - ------------------------------------------------------- GOVERNMENT NATIONAL MORTGAGE ASSOCIATION (0.4%) 5.987%, 02/16/24 (b) 1,045 1,060 -------- Total U.S. Government Agency Mortgages (Cost $43,740) 42,611 -------- U.S. TREASURY OBLIGATIONS (16.6%) U.S. TREASURY NOTES (16.6%) 2.750%, 08/15/07 (c) 23,865 23,199 2.625%, 05/15/08 (c) 18,165 17,367 4.500%, 02/15/09 (c) 4,795 4,753 3.500%, 08/15/09 930 892 4.500%, 11/15/10 (c) 3,005 2,965 -------- Total U.S. Treasury Obligations (Cost $49,714) 49,176 -------- SHORT-TERM INVESTMENTS (27.9%) CSFB Enhanced Liquidity Portfolio, 5.006% (d) 82,595,788 82,596 -------- Total Short-Term Investments (Cost $82,596) 82,596 -------- MONEY MARKET FUNDS (1.9%) Federated Prime Value Money Market Fund 5,649,658 5,650 -------- Total Money Market Funds (Cost $5,650) 5,650 -------- Total Investments (Cost $381,187) (a) -- 127.4% 376,928 Liabilities in excess of other assets -- (27.4)% (81,025) -------- Net Assets -- 100.0% $295,903 ========
See Notes to Financial Statements. 111 SCHEDULES OF PORTFOLIO INVESTMENTS STI CLASSIC FUNDS March 31, 2006 (Amounts in thousands, except Shares) SHORT-TERM BOND FUND -- CONCLUDED - --------------- (a)Cost for federal income tax purposes is $381,341 (amount in thousands). Unrealized appreciation/ (depreciation) on a tax basis is as follows (amounts in thousands): Unrealized Appreciation.................. $ 42 Unrealized Depreciation.................. (4,455) ------- Unrealized Appreciation (Depreciation)... $(4,413) =======
(b)Variable rate security. Rate presented represents rate in effect at March 31, 2006. Maturity date represents actual maturity date. (c)This security or a partial position of the security was on loan at March 31, 2006. The total value of securities on loan at March 31, 2006 in thousands was $80,369. (d)This security was purchased with cash collateral held from securities lending. (e)Rate represents the effective yield at purchase. (f)Rule 144A, Section 4(2) or other security which is restricted as to resale to institutional investors. The Fund's advisor has deemed this security to be liquid based upon procedures approved by the Board of Trustees. Cl -- Class LLC -- Limited Liability Corporation LP -- Limited Partnership REIT -- Real Estate Investment Trust Ser -- Series See Notes to Financial Statements. 112 SCHEDULES OF PORTFOLIO INVESTMENTS STI CLASSIC FUNDS March 31, 2006 (Amounts in thousands, except Shares) SHORT-TERM U.S. TREASURY SECURITIES FUND
- --------------------------------------------------------- Shares or Principal Amount($) Value($) - --------------------------------------------------------- U.S. TREASURY OBLIGATIONS (98.6%) U.S. TREASURY NOTES (98.6%) 2.750%, 06/30/06 1,000 995 7.000%, 07/15/06 1,000 1,006 2.375%, 08/31/06 1,000 990 2.500%, 09/30/06 1,000 989 2.500%, 10/31/06 1,000 987 2.875%, 11/30/06 1,000 987 6.250%, 02/15/07 2,000 2,023 4.375%, 05/15/07 5,000 4,973 3.625%, 06/30/07 7,000 6,894 2.750%, 08/15/07 8,000 7,777 4.000%, 08/31/07 6,000 5,930 3.000%, 11/15/07 6,000 5,828 4.250%, 11/30/07 7,000 6,933 3.375%, 02/15/08 8,000 7,792 3.750%, 05/15/08 8,000 7,828 4.375%, 11/15/08 7,500 7,414 4.125%, 08/15/10 1,000 972 4.500%, 11/15/10 3,000 2,960 4.250%, 01/15/11 5,000 4,876 ------- Total U.S. Treasury Obligations (Cost $79,265) 78,154 ------- MONEY MARKET FUNDS (1.0%) Federated U.S. Treasury Cash Reserves Fund 800,873 801 ------- Total Money Market Funds (Cost $801) 801 ------- Total Investments (Cost $80,066) (a) -- 99.6% 78,955 Other assets in excess of liabilities -- 0.4% 330 ------- Net Assets -- 100.0% $79,285 =======
- --------------- (a)Cost for federal income tax purposes is $80,173 (amount in thousands). Unrealized appreciation/(depreciation) on a tax basis is as follows (amounts in thousands): Unrealized Appreciation.................. $ -- Unrealized Depreciation.................. (1,218) ------- Unrealized Appreciation (Depreciation)... $(1,218) =======
See Notes to Financial Statements. 113 SCHEDULES OF PORTFOLIO INVESTMENTS STI CLASSIC FUNDS March 31, 2006 (Amounts in thousands, except Shares) STRATEGIC INCOME FUND
- ------------------------------------------------------- Shares or Principal Amount($) Value($) - ------------------------------------------------------- BANK LOANS (1.4%) COMPUTERS (0.2%) Stratus Technologies, Inc., 13.830%, 03/15/12 (b) (d) 550 534 --------- ENERGY (0.2%) Plum Point Associates LLC, 8.044%, 02/21/14 (b) (d) 107 108 Plum Point Associates LLC, 8.167%, 02/21/14 (b) (d) 443 446 --------- 554 --------- TELECOMMUNICATIONS (1.0%) Charter Communications Operating LLC, 0.000%, 04/27/11 (b) (d) (h) 547 551 Qwest Corp., 9.503%, 06/30/07 (b) (d) 2,477 2,538 --------- 3,089 --------- Total Bank Loans (Cost $4,200) 4,177 --------- CORPORATE BONDS (29.3%) ADVERTISING (0.2%) R.H. Donnelley Corp., 10.875%, 12/15/12, Callable 12/15/07 @ 105.44 575 638 --------- AUTO PARTS & EQUIPMENT (0.9%) Goodyear Tire & Rubber Co. (The), 9.000%, 07/01/15, Callable 07/01/10 @ 104.50 2,450 2,487 --------- BUILDING MATERIALS (1.0%) Nortek, Inc., 8.500%, 09/01/14, Callable 09/01/09 @ 104.25 1,310 1,333 U.S. Concrete, Inc., 8.375%, 04/01/14, Callable 04/01/09 @ 104.188 1,510 1,555 --------- 2,888 --------- CHEMICALS (2.3%) Equistar Chemical Funding Corp., 10.125%, 09/01/08 500 531 Huntsman International LLC, 11.625%, 10/15/10, Callable 10/15/07 @ 105.81 1,000 1,133 IMC Global, Inc., Ser B, 11.250%, 06/01/11, Callable 06/01/06 @ 105.625 20 21
- ------------------------------------------------------- Shares or Principal Amount($) Value($) - ------------------------------------------------------- CHEMICALS--CONTINUED Ineos Group Holdings PLC, 8.500%, 02/15/16, Callable 02/15/11 @ 104.25 (d) 1,945 1,848 Lyondell Chemical Co., Ser A, 9.625%, 05/01/07 2,000 2,064 Rockwood Specialties Group, Inc., 7.500%, 11/15/14, Callable 11/15/09 @ 103.75 (e) 1,000 1,005 --------- 6,602 --------- COMMERCIAL SERVICES (0.5%) Ashtead Holdings PLC, 8.625%, 08/01/15, Callable 08/01/10 @ 104.31 (d) 1,398 1,454 --------- COMPUTERS (1.1%) Activant Solutions, Inc., 10.500%, 06/15/11, Callable 06/15/07 @ 105.25 1,575 1,744 Sungard Data Systems, Inc., 10.250%, 08/15/15, Callable 08/15/10 @ 105.13 (d) (e) 1,290 1,358 --------- 3,102 --------- DIVERSIFIED FINANCIAL SERVICES (0.8%) CCM Merger, Inc., 8.000%, 08/01/13, Callable 08/01/09 @ 104 (d) 95 95 Galaxy Entertainment Finance Co. Ltd., 9.875%, 12/15/12, Callable 12/15/09 @ 104.94 (d) 120 125 General Motors Acceptance Corp., 6.875%, 09/15/11 2,370 2,209 --------- 2,429 --------- DIVERSIFIED OPERATIONS (0.8%) Leucadia National Corp., 7.000%, 08/15/13 500 501 Nell AF SARL, 8.375%, 08/15/15, Callable 08/15/10 @ 104.19 (d) (e) 1,825 1,812 --------- 2,313 ---------
See Notes to Financial Statements. 114 SCHEDULES OF PORTFOLIO INVESTMENTS STI CLASSIC FUNDS March 31, 2006 (Amounts in thousands, except Shares) STRATEGIC INCOME FUND -- CONTINUED
- ------------------------------------------------------- Shares or Principal Amount($) Value($) - ------------------------------------------------------- ELECTRIC (3.4%) AES Corp. (The), 9.500%, 06/01/09 1,300 1,400 Allegheny Energy Supply Co. LLC, 8.250%, 04/15/12 (d) 1,070 1,173 Aquila, Inc., 14.875%, 07/01/12 2,010 2,718 Edison Mission Energy, 10.000%, 08/15/08 750 803 Mirant Americas Generation LLC, 8.300%, 05/01/11 400 414 Mirant Americas Generation LLC, 8.500%, 10/01/21 150 153 Mirant Americas Generation LLC, 9.125%, 05/01/31 125 133 Mission Energy Holdings Co., 13.500%, 07/15/08 1,400 1,606 NRG Energy, Inc., 7.250%, 02/01/14, Callable 02/01/09 @ 107.25 940 955 Sithe/Independence Funding Corp., Ser A, 9.000%, 12/30/13 750 810 --------- 10,165 --------- ENTERTAINMENT (0.5%) Six Flags, Inc., 9.625%, 06/01/14, Callable 06/01/09 @ 104.81 1,405 1,416 --------- FOOD (1.3%) Pinnacle Foods Holding Corp., 8.250%, 12/01/13, Callable 12/01/08 @ 104.12 2,740 2,712 Stater Brothers Holdings, Inc., 8.125%, 06/15/12, Callable 06/15/08 @ 104.06 1,000 999 --------- 3,711 --------- FOREST PRODUCTS & PAPER (1.1%) Appleton Papers, Inc., Ser B, 9.750%, 06/15/14, Callable 06/15/09 @ 104.88 2,425 2,407 Boise Cascade LLC, 7.475%, 10/15/12, Callable 06/16/06 @ 102 (b) 900 911 --------- 3,318 ---------
- ------------------------------------------------------- Shares or Principal Amount($) Value($) - ------------------------------------------------------- HEALTHCARE -- PRODUCTS (0.9%) Accellent, Inc., 10.500%, 12/01/13, Callable 12/01/09 @ 105.25 1,060 1,132 Universal Hospital Services, Inc., 10.125%, 11/01/11, Callable 11/01/07 @ 105.06 1,460 1,514 --------- 2,646 --------- HEALTHCARE -- SERVICES (1.7%) Skilled Healthcare Group, 11.000%, 01/15/14, Callable 01/15/10 @ 105.50 (d) 1,290 1,342 Tenet Healthcare Corp., 9.875%, 07/01/14 1,385 1,402 US Oncology Holdings, Inc., 10.320%, 03/15/15, Callable 03/15/07 @ 102 (b) 945 947 US Oncology, Inc., 10.750%, 08/15/14, Callable 03/15/07 @ 102 1,250 1,366 --------- 5,057 --------- HOUSEHOLD PRODUCTS/WARES (0.5%) Visant Holding Corp., 8.750%, 12/01/13, Callable 12/01/08 @ 106.563 (d) 1,400 1,344 --------- LODGING (0.6%) Mandalay Resort Group, Ser B, 10.250%, 08/01/07 300 316 MGM Mirage, Inc., 9.750%, 06/01/07 1,386 1,443 --------- 1,759 --------- MACHINERY DIVERSIFIED (1.0%) Chart Industries, Inc., 9.125%, 10/15/15, Callable 10/15/10 @ 104.56 (d) 1,250 1,291 NMGH Holding Co., 10.000%, 05/15/09, Callable 05/15/06 @ 105 1,500 1,575 --------- 2,866 --------- MEDIA (4.5%) Cablevision Systems Corp., Ser B, 8.000%, 04/15/12 (e) 1,340 1,307 CCH I LLC, 11.000%, 10/01/15, Callable 10/01/10 @ 105.50 1,570 1,305
See Notes to Financial Statements. 115 SCHEDULES OF PORTFOLIO INVESTMENTS STI CLASSIC FUNDS March 31, 2006 (Amounts in thousands, except Shares) STRATEGIC INCOME FUND -- CONTINUED
- ------------------------------------------------------- Shares or Principal Amount($) Value($) - ------------------------------------------------------- MEDIA--CONTINUED Dex Media, Inc., 9.540%, 11/15/13, Callable 11/15/08 @ 104.50 (c) (g) 1,085 917 EchoStar DBS Corp., 7.125%, 02/01/16, Callable 10/01/06 @ 100 (d) 185 182 Houghton Mifflin Co., 10.776%, 10/15/13 (c) (e) (g) 1,545 1,317 Kabel Deutschland Gmbh, 10.625%, 07/01/14, Callable 07/01/09 @ 105.31 (d) 2,200 2,348 LIN Television Corp., Ser B, 6.500%, 05/15/13, Callable 05/15/08 @ 103.25 750 705 Mediacom LLC, 9.500%, 01/15/13, Callable 01/15/07 @ 103.167 2,470 2,444 Morris Publishing Group LLC, 7.000%, 08/01/13, Callable 08/01/08 @ 103.50 1,320 1,246 Quebecor Media, Inc., 7.750%, 03/15/16, Callable 03/15/11 @ 103.875 (d) 195 200 Quebecor World Capital Corp., 8.750%, 03/15/16, Callable 03/15/11 @ 104.375 (d) 140 137 Sinclair Broadcast Group, Inc., 8.750%, 12/15/11, Callable 12/15/06 @ 104.375 1,180 1,240 Sinclair Broadcast Group, Inc., 8.000%, 03/15/12, Callable 03/15/07 @ 104 35 36 --------- 13,384 --------- MISCELLANEOUS MANUFACTURER (0.8%) Clarke American Corp., 11.750%, 12/15/13, Callable 12/15/09 @ 105.88 (d) 1,610 1,638 Koppers, Inc., 9.875%, 10/15/13, Callable 10/15/08 @ 104.94 681 746 --------- 2,384 ---------
- ------------------------------------------------------- Shares or Principal Amount($) Value($) - ------------------------------------------------------- OIL & GAS (0.2%) Compagnie Gererale de Geophysique SA, 7.500%, 05/15/15, Callable 05/15/10 @ 103.75 120 124 Compton Petroleum Finance Corp., 7.625%, 12/01/13, Callable 12/01/09 @ 103.813 (d) 145 145 Compton Petroleum Finance Corp., 7.625%, 12/01/13, Callable 12/01/09 @ 103.813 170 170 --------- 439 --------- PACKAGING & CONTAINERS (0.2%) Crown Cork & Seal Co., Inc., 7.375%, 12/15/26 500 465 --------- PIPELINES (0.1%) Copano Energy LLC, 8.125%, 03/01/16, Callable 03/01/11 @ 104.0625 (d) 50 52 Targa Resources, Inc., 8.500%, 11/01/13, Callable 11/01/09 @ 104.25 (d) 105 109 --------- 161 --------- REAL ESTATE (0.4%) American Real Estate Partners LP, 7.125%, 02/15/13, Callable 02/15/09 @ 103.56 420 414 CB Richard Ellis Group, Inc., 9.750%, 05/15/10, Callable 05/15/07 @ 104.88 750 812 --------- 1,226 --------- REITS (0.3%) Host Marriott Corp., Ser G, 9.250%, 10/01/07 750 785 Ventas Realty LP, 6.500%, 06/01/16, Callable 06/01/11 @ 103.25 (d) 65 65 --------- 850 --------- RETAIL (0.5%) Rite Aid Corp., 7.500%, 01/15/15, Callable 01/15/10 @ 103.75 1,500 1,455 ---------
See Notes to Financial Statements. 116 SCHEDULES OF PORTFOLIO INVESTMENTS STI CLASSIC FUNDS March 31, 2006 (Amounts in thousands, except Shares) STRATEGIC INCOME FUND -- CONTINUED
- ------------------------------------------------------- Shares or Principal Amount($) Value($) - ------------------------------------------------------- SEMICONDUCTORS (1.4%) Avago Technologies Finance Ltd., 10.320%, 06/01/13, Callable 12/01/07 @ 102 (b) (d) 1,235 1,291 Avago Technologies Finance Ltd., 11.875%, 12/01/15, Callable 12/01/10 @ 105.938 (d) (e) 1,320 1,432 Spansion LLC, 11.250%, 01/15/16, Callable 01/15/11 @ 105.62 (d) 1,345 1,291 --------- 4,014 --------- SOFTWARE (0.5%) SERENA Software, Inc., 10.375%, 03/15/16, Callable 03/15/11 @ 105.188 (d) 1,330 1,397 --------- TELECOMMUNICATIONS (1.8%) Nextel Communications, Inc., 7.375%, 08/01/15, Callable 08/01/08 @ 103.69 1,750 1,835 PanAmSat Holdings Corp., 9.000%, 08/15/14, Callable 08/15/09 @ 104.50 2,053 2,161 Valor Telecommunications Enterprise LLC, 7.750%, 02/15/15, Callable 02/15/10 @ 103.88 1,275 1,336 --------- 5,332 --------- Total Corporate Bonds (Cost $84,468) 85,302 --------- FOREIGN GOVERNMENT BONDS (32.2%) BRAZIL (0.3%) Republic of Brazil, 7.875%, 03/07/15 (e) 685 739 --------- COLUMBIA (0.2%) Republic of Colombia, 8.250%, 12/22/14 590 664 --------- FRANCE (EUR) (3.9%) France Government, 3.000%, 10/25/15 9,900 11,240 --------- GERMANY (EUR) (4.0%) Deutschland Republic, Ser 05, 4.000%, 01/04/37 9,760 11,824 ---------
- ------------------------------------------------------- Shares or Principal Amount($) Value($) - ------------------------------------------------------- JAPAN (YEN) (19.6%) Japan Government, Ser 241, 0.300%, 02/15/08 3,186,050 26,916 Japan Government, Ser 52, 0.800%, 12/20/10 3,652,650 30,408 --------- 57,324 --------- SPAIN (EUR) (3.9%) Spanish Government, 3.150%, 01/31/16 9,880 11,327 --------- UKRAINE (0.3%) Ukraine Government, 7.650%, 06/11/13 (d) 800 839 --------- Total Foreign Government Bonds (Cost $94,906) 93,957 --------- PREFERRED STOCK (0.4%) RETAIL (0.4%) Rite Aid Corp., 5.500% 50,000 1,153 --------- Total Preferred Stock (Cost $1,255) 1,153 --------- U.S. TREASURY OBLIGATIONS (34.8%) U.S. TREASURY BONDS (3.5%) 4.500%, 02/15/36 (e) 10,725 10,063 --------- U.S. TREASURY INFLATION PROTECTED NOTES/BONDS (4.9%) 1.625%, 01/15/15 14,575 14,284 --------- U.S. TREASURY NOTES (26.4%) 2.250%, 04/30/06 (e) 8,400 8,384 4.625%, 02/29/08 (e) 41,980 41,811 4.500%, 02/28/11 (e) 19,750 19,462 3.875%, 02/15/13 (e) 5,855 5,521 4.500%, 02/15/16 (e) 1,980 1,926 --------- 77,104 --------- Total U.S. Treasury Obligations (Cost $102,978) 101,451 --------- SHORT-TERM INVESTMENTS (35.5%) Brown Brothers Harriman & Co., Cayman Islands Cash Sweep, 3.970% 14,301,265 14,301
See Notes to Financial Statements. 117 SCHEDULES OF PORTFOLIO INVESTMENTS STI CLASSIC FUNDS March 31, 2006 (Amounts in thousands, except Shares) STRATEGIC INCOME FUND -- CONCLUDED
- ------------------------------------------------------- Shares or Principal Amount($) Value($) - ------------------------------------------------------- SHORT-TERM INVESTMENTS--CONTINUED CSFB Enhanced Liquidity Portfolio, 5.006% (f) 89,171,960 89,171 --------- Total Short-Term Investments (Cost $103,473) 103,472 --------- Total Investments (Cost $391,280) (a) -- 133.6% 389,512 Liabilities in excess of other assets -- (33.6)% (97,966) --------- Net Assets -- 100.0% $ 291,546 =========
- --------------- (a)Cost for federal income tax purposes is $391,164 (amount in thousands). Unrealized appreciation/ (depreciation) on a tax basis is as follows (amounts in thousands): Unrealized Appreciation.................. $ 1,610 Unrealized Depreciation.................. (3,259) ------- Unrealized Appreciation (Depreciation)... $(1,649) =======
(b)Variable rate security. Rate presented represents rate in effect at March 31, 2006. Maturity date represents actual maturity date. (c)Rate represents the effective yield at purchase. (d)Rule 144A, Section 4(2) or other security which is restricted as to resale to institutional investors. The Fund's advisor has deemed this security to be liquid based upon procedures approved by the Board of Trustees. (e)This security or a partial position of the security was on loan at March 31, 2006. The total value of securities on loan at March 31, 2006 in thousands was $86,496. (f)This security was purchased with cash collateral held from securities lending. (g)Step bond. (h)This security has not settled as of March 31, 2006 and thus does not have a rate in effect. The security does not have a stated settlement date and will receive a rate upon settling with the custodian. EUR -- Principal Amount in Euro LLC -- Limited Liability Corporation LP -- Limited Partnership PLC -- Public Limited Company REIT -- Real Estate Investment Trust Ser -- Series YEN -- Principal Amount in Japanese Yen At March 31, 2006, the Fund's foreign currency exchange contracts were as follows:
- ----------------------------------------------------------------------------------------------------------------------- Contract Unrealized Delivery Contract Amount Value in Market Appreciation/ Currency Date in Local Currency USD Value (Depreciation) - ----------------------------------------------------------------------------------------------------------------------- Short: Swiss Franc 04/05/06 17,993 $13,798 $13,807 $(9) ------- ------- --- Total Short Contracts $13,798 $13,807 $(9) ======= ======= === Long: Japanese Yen 04/05/06 1,626,377 $13,826 $13,822 $(4) ------- ------- --- Total Long Contracts $13,826 $13,822 $(4) ======= ======= ===
See Notes to Financial Statements. 118 SCHEDULES OF PORTFOLIO INVESTMENTS STI CLASSIC FUNDS March 31, 2006 (Amounts in thousands, except Shares) TOTAL RETURN BOND FUND
- --------------------------------------------------------- Principal Amount($) Value($) - --------------------------------------------------------- ASSET BACKED SECURITIES (2.7%) AUTOMOBILE ABS (0.6%) Daimler Chrysler Auto Trust, Ser 2005-A, Cl A4, 3.740%, 02/08/10 300 292 Honda Auto Receivables Owner Trust, Ser 2006-1, Cl A3, 5.070%, 09/18/09 130 130 ------- 422 ------- CREDIT CARD ABS (0.7%) MBNA Credit Card Master Trust, Ser 2002-A13, Cl A, 4.879%, 05/17/10 (b) 413 414 ------- DIVERSIFIED FINANCIAL SERVICES (0.7%) SLM Student Loan Trust, Ser 2004-8, Cl A3, 4.713%, 07/27/15 (b) 411 412 ------- HOME EQUITY ABS (0.7%) Countywide Home Equity Loan Trust, Ser 2006-C, Cl 2A, 5.041%, 05/15/36 (b) 418 418 ------- Total Asset Backed Securities (Cost $1,667) 1,666 ------- COLLATERALIZED MORTGAGE OBLIGATIONS (2.3%) Banc of America Commercial Mortgage, Inc., Ser 2004-4, Cl A3, 4.128%, 07/10/42 275 265 Citigroup/Deutsche Bank Commercial Mortgage Trust, Ser 2005-CD1, Cl A4, 5.225%, 07/15/44 (b) 210 206 Citigroup/Deutsche Bank Commercial Mortgage Trust, Ser 2006-CD2, Cl A4, 5.545%, 01/15/46 (b) 135 133 GE Capital Commercial Mortgage Corp., Ser 2006-C1, Cl A4, 5.519%, 03/10/44 (b) 335 330 GS Mortgage Securities Corp. II, Ser 2006-GG6, Cl A2, 5.506%, 04/10/38 (b) 270 271 Wachovia Bank Commercial Mortgage Trust, Ser 2006-C23, Cl A4, 5.418%, 01/15/45 (b) 225 222 ------- Total Collateralized Mortgage Obligations (Cost $1,443) 1,427 -------
- --------------------------------------------------------- Principal Amount($) Value($) - --------------------------------------------------------- CORPORATE BONDS (11.1%) AEROSPACE/DEFENSE (0.3%) United Technologies Corp., 4.875%, 05/01/15 165 158 ------- AIRLINES (0.1%) Southwest Airlines Co., 5.125%, 03/01/17 95 88 ------- BANKS (0.4%) Bank of America Corp., 7.400%, 01/15/11 235 254 ------- COMMERCIAL SERVICES (0.1%) ERAC USA Finance Co., 5.600%, 05/01/15 (c) 75 73 ------- COSMETICS/PERSONAL CARE (0.4%) Avon Products, Inc., 5.125%, 01/15/11 250 246 ------- DIVERSIFIED FINANCIAL SERVICES (2.7%) CIT Group, Inc., 5.125%, 09/30/14 165 158 Citigroup, Inc., 5.125%, 05/05/14 60 58 Citigroup, Inc., 5.850%, 12/11/34 85 83 Fund American Cos., Inc., 5.875%, 05/15/13 215 211 Goldman Sachs Group, Inc. (The), 4.750%, 07/15/13 240 227 HSBC Holdings PLC, 7.625%, 05/17/32 90 107 International Lease Finance Corp., Ser Q, 5.250%, 01/10/13 90 87 John Deere Capital Corp., 3.900%, 01/15/08 50 49 JPMorgan Chase & Co., 6.625%, 03/15/12 265 279 Lazard Group LLC, 7.125%, 05/15/15 290 301 Morgan Stanley, 5.300%, 03/01/13 195 191 ------- 1,751 ------- ELECTRIC (0.8%) Exelon Corp., 4.900%, 06/15/15 170 158 Exelon Corp., 5.625%, 06/15/35 160 145 Pacific Gas & Electric Co., 6.050%, 03/01/34 175 171 ------- 474 ------- ENTERTAINMENT (0.1%) GTECH Holdings Corp., 4.750%, 10/15/10 45 44 -------
See Notes to Financial Statements. 119 SCHEDULES OF PORTFOLIO INVESTMENTS STI CLASSIC FUNDS March 31, 2006 (Amounts in thousands, except Shares) TOTAL RETURN BOND FUND -- CONTINUED
- --------------------------------------------------------- Principal Amount($) Value($) - --------------------------------------------------------- INSURANCE (0.1%) Metlife, Inc., 5.700%, 06/15/35 45 42 ------- INVESTMENT COMPANIES (0.1%) Credit Suisse First Boston USA, Inc., 6.500%, 01/15/12 85 89 ------- MEDIA (0.6%) Cox Communications, Inc., 4.625%, 06/01/13 175 160 News America Holdings, Inc., 6.200%, 12/15/34 90 84 Time Warner, Inc., 7.625%, 04/15/31 95 103 ------- 347 ------- MINING (0.1%) Alcan, Inc., 5.750%, 06/01/35 85 79 ------- MISCELLANEOUS MANUFACTURER (0.7%) General Electric Co., 5.000%, 02/01/13 425 413 ------- OIL & GAS (0.4%) Devon Financing Corp. ULC, 7.875%, 09/30/31 110 133 Enterprise Products Operating LP, Ser B, 5.750%, 03/01/35 100 89 ------- 222 ------- PHARMACEUTICALS (0.2%) Teva Pharmaceutical Finance LLC, 5.550%, 02/01/16 65 62 Teva Pharmaceutical Finance LLC, 6.150%, 02/01/36 40 38 ------- 100 ------- PIPELINES (0.6%) Centerpoint Energy Resources Corp., Ser B, 7.875%, 04/01/13 175 194 Kinder Morgan, Inc., 6.400%, 01/05/36 170 166 ------- 360 ------- REITS (0.1%) Simon Property Group LP, 6.375%, 11/15/07 35 36 ------- RETAIL (0.7%) Federated Department Stores, Inc., 6.900%, 04/01/29 45 47 Woolworths Ltd., 5.550%, 11/15/15 (c) 380 370 ------- 417 -------
- --------------------------------------------------------- Principal Amount($) Value($) - --------------------------------------------------------- TELECOMMUNICATIONS (2.6%) AT&T, Inc., 5.100%, 09/15/14 385 365 BellSouth Corp., 5.200%, 09/15/14 285 273 Cisco Systems, Inc., 5.500%, 02/22/16 225 222 Comcast Corp., 4.950%, 06/15/16 160 146 Comcast Corp., 6.450%, 03/15/37 105 101 Telecom Italia Capital SA, 5.250%, 10/01/15 215 200 Verizon Communications, Inc., 5.850%, 09/15/35 95 85 Vodafone Group PLC, 5.500%, 06/15/11 295 292 ------- 1,684 ------- Total Corporate Bonds (Cost $7,074) 6,877 ------- FOREIGN GOVERNMENT BONDS (2.9%) FRANCE (EUR) (0.4%) France Government, 3.000%, 10/25/15 195 221 ------- GERMANY (EUR) (0.4%) Deutschland Republic, Ser 05, 4.000%, 01/04/37 190 230 ------- JAPAN (YEN) (1.7%) Japan Government, Ser 241, 0.300%, 02/15/08 63,500 536 Japan Government, Ser 52, 0.800%, 12/20/10 72,450 604 ------- 1,140 ------- SPAIN (EUR) (0.4%) Spanish Government, 3.150%, 01/31/16 195 224 ------- Total Foreign Government Bonds (Cost $1,835) 1,815 ------- U.S. GOVERNMENT AGENCY MORTGAGES (30.7%) FANNIE MAE (19.5%) 5.500%, 07/01/16 146 145 5.500%, 11/01/18 343 341 5.500%, 07/01/19 90 90 5.000%, 10/01/19 613 597 5.000%, 10/01/19 736 718 5.500%, 12/01/19 123 122 4.500%, 04/15/20 (d) 980 937 6.500%, 07/01/32 404 414 5.500%, 01/01/33 818 798 5.500%, 06/01/33 534 521 5.500%, 07/01/33 452 441
See Notes to Financial Statements. 120 SCHEDULES OF PORTFOLIO INVESTMENTS STI CLASSIC FUNDS March 31, 2006 (Amounts in thousands, except Shares) TOTAL RETURN BOND FUND -- CONCLUDED
- --------------------------------------------------------- Principal Amount($) Value($) - --------------------------------------------------------- FANNIE MAE--CONTINUED 5.500%, 10/01/33 1,224 1,195 5.000%, 11/01/33 692 659 5.000%, 11/01/33 730 695 6.000%, 11/01/33 181 181 5.500%, 01/01/34 644 629 5.000%, 04/01/34 978 932 6.500%, 11/01/34 630 642 5.000%, 09/01/35 659 628 6.000%, 12/01/35 799 799 5.173%, 01/01/36 (b) 604 600 ------- 12,084 ------- FREDDIE MAC (11.2%) 4.500%, 09/01/18 614 586 5.000%, 11/01/18 66 64 5.500%, 12/01/18 125 125 5.000%, 01/01/19 762 744 6.000%, 11/01/33 753 754 6.000%, 11/01/33 574 574 6.500%, 05/01/34 120 122 5.000%, 07/01/34 101 96 6.000%, 10/01/34 294 295 6.000%, 04/13/35 (d) 1,847 1,847 6.500%, 05/01/35 1,012 1,032 4.646%, 08/01/35 (b) 749 728 ------- 6,967 ------- Total U.S. Government Agency Mortgages (Cost $19,510) 19,051 ------- U.S. TREASURY OBLIGATIONS (49.7%) U.S. TREASURY BONDS (5.1%) 4.500%, 02/15/36 3,400 3,190 ------- U.S. TREASURY INFLATION PROTECTED NOTES/BONDS (5.3%) 1.625%, 01/15/15 3,335 3,269 ------- U.S. TREASURY NOTES (39.3%) 2.250%, 04/30/06 2,370 2,365 3.125%, 05/15/07 2,445 2,399 4.625%, 02/29/08 2,080 2,072 5.625%, 05/15/08 3,975 4,036 3.375%, 12/15/08 3,295 3,175 4.500%, 02/15/09 110 109 6.000%, 08/15/09 2,575 2,668 4.250%, 10/15/10 3,145 3,072 4.500%, 02/28/11 2,130 2,099 4.250%, 08/15/13 1,320 1,270 4.250%, 11/15/14 1,077 1,029 ------- 24,294 ------- Total U.S. Treasury Obligations (Cost $31,349) 30,753 -------
- --------------------------------------------------------- Principal Amount($) Value($) - --------------------------------------------------------- REPURCHASE AGREEMENT (6.6%) Merrill Lynch & Co., Inc., 4.725%, dated 03/31/06, to be repurchased on 04/03/06, repurchase price $4,085,516 (collateralized by U.S. Government Agencies, 5.500%, due 02/01/35; total market value $4,168,179) 4,084 4,084 ------- Total Repurchase Agreement (Cost $4,084) 4,084 ------- Total Investments (Cost $66,962) (a) -- 106.0% 65,673 Liabilities in excess of other assets -- (6.0)% (3,707) ------- Net Assets -- 100.0% $61,966 =======
- --------------- (a)Cost for federal income tax purposes is $67,019 (amount in thousands). Unrealized appreciation/ (depreciation) on a tax basis is as follows (amounts in thousands): Unrealized Appreciation.................. $ 15 Unrealized Depreciation.................. (1,361) ------- Unrealized Appreciation (Depreciation)... $(1,346) =======
(b)Variable rate security. Rate presented represents rate in effect at March 31, 2006. Maturity date represents actual maturity date. (c)Rule 144A, Section 4(2) or other security which is restricted as to resale to institutional investors. The Fund's advisor has deemed this security to be liquid based upon procedures approved by the Board of Trustees. (d)This security was purchased on a when-issued basis. Cl -- Class EUR -- Principal Amount in Euro LLC -- Limited Liability Corporation LP -- Limited Partnership PLC -- Public Limited Company REIT -- Real Estate Investment Trust Ser -- Series YEN -- Principal Amount in Japanese Yen See Notes to Financial Statements. 121 SCHEDULES OF PORTFOLIO INVESTMENTS STI CLASSIC FUNDS March 31, 2006 (Amounts in thousands, except Shares) U.S. GOVERNMENT SECURITIES FUND
- ------------------------------------------------------- Shares or Principal Amount($) Value($) - ------------------------------------------------------- U.S. GOVERNMENT AGENCIES (1.9%) FREDDIE MAC (1.9%) 4.875%, 11/15/13 6,500 6,367 --------- Total U.S. Government Agencies (Cost $6,662) 6,367 --------- U.S. GOVERNMENT AGENCY MORTGAGES (49.4%) FANNIE MAE (38.0%) 6.000%, 07/01/16 852 864 6.000%, 07/01/16 1,602 1,625 5.500%, 09/01/17 2,011 2,001 5.500%, 01/01/18 7,757 7,717 5.500%, 04/01/18 973 968 6.290%, 08/01/18 1,167 1,193 5.500%, 11/01/18 7,079 7,041 5.000%, 03/01/19 16,450 16,071 7.000%, 06/01/32 1,003 1,033 6.000%, 03/01/33 1,636 1,638 4.098%, 08/01/33 (b) 8,342 8,190 6.000%, 10/01/33 2,853 2,854 6.000%, 04/01/34 7,541 7,544 4.502%, 05/01/34 (b) 5,405 5,313 4.748%, 05/01/34 (b) 8,358 8,106 4.023%, 06/01/34 (b) 3,378 3,284 4.242%, 06/01/34 (b) 2,084 2,043 6.000%, 03/01/35 2,474 2,475 5.173%, 01/01/36 (b) 11,388 11,312 6.000%, 01/01/36 15,827 15,827 5.251%, 02/01/36 (b) 5,443 5,412 5.528%, 02/01/36 (b) 11,796 11,775 --------- 124,286 --------- FREDDIE MAC (11.4%) 5.500%, 04/01/17 2,320 2,307 4.500%, 01/01/19 11,232 10,743
- ------------------------------------------------------- Shares or Principal Amount($) Value($) - ------------------------------------------------------- FREDDIE MAC--CONTINUED 5.000%, 04/01/19 17,759 17,341 5.316%, 03/01/33 (b) 7,085 6,997 --------- 37,388 --------- Total U.S. Government Agency Mortgages (Cost $164,318) 161,674 --------- U.S. TREASURY OBLIGATIONS (44.4%) U.S. TREASURY BONDS (6.0%) 4.500%, 02/15/36 (c) 21,100 19,798 --------- U.S. TREASURY INFLATION PROTECTED NOTES/BONDS (5.6%) 1.625%, 01/15/15 18,750 18,376 --------- U.S. TREASURY NOTES (32.8%) 2.375%, 08/31/06 (c) 17,000 16,836 3.625%, 07/15/09 (c) 32,350 31,180 6.000%, 08/15/09 (c) 21,000 21,759 3.375%, 09/15/09 (c) 15,750 15,031 5.000%, 02/15/11 (c) 15,000 15,122 4.250%, 08/15/13 (c) 7,650 7,358 --------- 107,286 --------- Total U.S. Treasury Obligations (Cost $148,904) 145,460 --------- SHORT-TERM INVESTMENTS (39.0%) CSFB Enhanced Liquidity Portfolio, 5.006% (d) 127,593,700 127,594 --------- Total Short-Term Investments (Cost $127,594) 127,594 ---------
See Notes to Financial Statements. 122 SCHEDULES OF PORTFOLIO INVESTMENTS STI CLASSIC FUNDS March 31, 2006 (Amounts in thousands, except Shares) U.S. GOVERNMENT SECURITIES FUND -- CONCLUDED
- ------------------------------------------------------- Shares or Principal Amount($) Value($) - ------------------------------------------------------- REPURCHASE AGREEMENT (4.3%) Merrill Lynch & Co., Inc., 4.725%, dated 03/31/06, to be repurchased 04/03/06, repurchase price $14,064,238 (collaterized by U.S. Government obligations 5.500%, due 02/01/35; total market value $14,340,900) 14,059 14,059 --------- Total Repurchase Agreement (Cost $14,059) 14,059 --------- Total Investments (Cost $461,537) (a) -- 139.0% 455,154 Liabilities in excess of other assets -- (39.0)% (127,738) --------- Net Assets -- 100.0% $ 327,416 =========
- --------------- (a)Cost for federal income tax purposes is $461,846 (amount in thousands). Unrealized appreciation/ (depreciation) on a tax basis is as follows (amounts in thousands): Unrealized Appreciation.................. $ 39 Unrealized Depreciation.................. (6,731) ------- Unrealized Appreciation (Depreciation)... $(6,692) =======
(b)Variable rate security. Rate presented represents rate in effect at March 31, 2006. Maturity date represents actual maturity date. (c)This security or a partial position of the security was on loan at March 31, 2006. The total value of securities on loan at March 31, 2006 in thousands was $123,842. (d)This security was purchased with cash collateral held from securities lending. See Notes to Financial Statements. 123 SCHEDULES OF PORTFOLIO INVESTMENTS STI CLASSIC FUNDS March 31, 2006 (Amounts in thousands, except Shares) U.S. GOVERNMENT SECURITIES ULTRA-SHORT BOND FUND
- --------------------------------------------------------- Shares or Principal Amount($) Value($) - --------------------------------------------------------- ASSET BACKED SECURITIES (9.9%) DIVERSIFIED FINANCIAL SERVICES (9.9%) Access Group, Inc., Ser 2003-1, Cl A6, 4.700%, 12/26/35 (b) 400 400 College Loan Corp. Trust, Ser 2005-2, Cl A1, 4.610%, 01/15/15 (b) 506 506 Collegiate Funding Services Education Loan, Ser 2003-5, Cl A6, 4.560%, 12/28/43 (b) 400 400 KeyCorp Student Loan Trust, Ser 2004-A, Cl 1A1, 4.256%, 04/27/17 (b) 435 435 Nelnet Student Loan Corp., Ser 2002-A, Cl A7, 4.600%, 06/01/35 (b) 350 350 Nelnet Student Loan Trust, Ser 2005-4, Cl A1, 4.418%, 12/22/18 (b) 754 756 SLC Student Loan Trust, Ser 2005-2, Cl A1, 4.910%, 03/15/18 (b) 293 292 SLM Student Loan Trust, Ser 1998-1, Cl A2, 5.370%, 10/25/11 (b) 573 578 SLM Student Loan Trust, Ser 2005-10, Cl A2, 4.565%, 04/25/15 (b) 500 500 ------- Total Asset Backed Securities (Cost $4,216) 4,217 ------- MASTER NOTES (1.9%) BANKS (1.9%) Bank of America Corp., 4.945%, 09/14/06 (b) 800 800 ------- Total Master Notes (Cost $800) 800 ------- MUNICIPAL BONDS (0.9%) MISSOURI (0.9%) Missouri Higher Education Loan Authority, Student Loan, Ser D, RB, 4.750%, 07/01/32 (b) 400 400 ------- Total Municipal Bonds (Cost $400) 400 -------
- --------------------------------------------------------- Shares or Principal Amount($) Value($) - --------------------------------------------------------- U.S. GOVERNMENT AGENCIES (40.5%) FANNIE MAE (12.0%) 4.536%, 04/26/06 (c) 1,000 997 4.652%, 05/15/06 (c) 750 746 1.750%, 06/16/06 1,060 1,053 5.150%, 09/21/07, Callable 06/21/06 @ 100 750 748 5.000%, 11/23/07, Callable 05/23/06 @ 100 325 323 4.200%, 03/24/08 (d) 350 344 3.250%, 08/15/08 550 528 4.000%, 01/26/09, Callable 01/26/07 @ 100 400 389 ------- 5,128 ------- FEDERAL FARM CREDIT BANK (11.7%) 4.560%, 12/01/06 (b) 2,500 2,500 4.576%, 04/04/07 (b) 1,500 1,501 4.710%, 05/01/07 (b) 1,000 1,000 ------- 5,001 ------- FEDERAL HOME LOAN BANK (3.9%) 4.653%, 04/05/06 (c) 475 475 2.650%, 05/05/06 1,000 998 4.000%, 10/15/08, Callable 04/10/06 @ 100 200 195 ------- 1,668 ------- FREDDIE MAC (12.9%) 4.470%, 04/07/06 (c) 1,000 999 2.740%, 05/12/06 1,125 1,122 4.500%, 08/22/07, Callable 08/22/06 @ 100 (d) 500 495 4.250%, 06/23/08, Callable 06/23/06 @ 100 1,600 1,574 5.050%, 12/08/08, Callable 12/08/06 @ 100 675 672 4.625%, 12/19/08 590 583 ------- 5,445 ------- Total U.S. Government Agencies (Cost $17,291) 17,242 ------- U.S. GOVERNMENT AGENCY MORTGAGES (44.2%) FANNIE MAE (17.2%) 7.510%, 04/01/07 702 707 7.030%, 08/01/07 144 146 4.500%, 04/25/09 125 125 5.969%, 06/01/09 198 200 4.500%, 04/01/10 773 751
See Notes to Financial Statements. 124 SCHEDULES OF PORTFOLIO INVESTMENTS STI CLASSIC FUNDS March 31, 2006 (Amounts in thousands, except Shares) U.S. GOVERNMENT SECURITIES ULTRA-SHORT BOND FUND -- CONCLUDED
- --------------------------------------------------------- Shares or Principal Amount($) Value($) - --------------------------------------------------------- FANNIE MAE--CONTINUED 3.500%, 06/25/10 241 239 3.000%, 06/25/19 1,040 1,025 5.022%, 05/01/32 (b) 489 499 3.250%, 11/25/32 241 237 3.657%, 08/01/33 (b) 812 785 5.626%, 09/01/33 (b) 368 371 5.589%, 10/01/33 (b) 446 456 3.360%, 01/01/34 (b) 387 387 4.337%, 03/01/34 (b) 816 796 4.326%, 06/01/35 (b) 215 211 4.868%, 09/25/35 (b) 368 368 ------- 7,303 ------- FREDDIE MAC (26.7%) 4.500%, 03/01/08 603 594 4.000%, 05/01/08 201 196 4.000%, 06/01/08 402 391 4.000%, 03/15/10 392 390 3.500%, 05/15/11 151 149 4.000%, 11/15/11 446 439 3.750%, 12/15/11 318 308 5.000%, 02/15/14 400 399 4.500%, 02/15/15 525 516 5.000%, 05/15/15 879 876 5.000%, 09/15/15 228 226 5.500%, 12/15/15 151 151 5.049%, 01/15/18 (b) 1,421 1,422 3.500%, 05/15/19 372 367 5.000%, 12/15/20 458 456 3.000%, 04/15/21 968 955 3.000%, 04/15/21 1,034 1,021 4.000%, 04/15/21 143 142 3.500%, 01/15/23 387 380 4.500%, 04/15/25 456 448 3.669%, 08/01/33 (b) 772 753 4.273%, 03/01/34 (b) 703 688 4.972%, 04/01/34 (b) 144 142 ------- 11,409 ------- GOVERNMENT NATIONAL MORTGAGE ASSOCIATION (0.3%) 5.987%, 02/16/24 (b) 125 127 ------- Total U.S. Government Agency Mortgages (Cost $19,114) 18,839 -------
- --------------------------------------------------------- Shares or Principal Amount($) Value($) - --------------------------------------------------------- SHORT-TERM INVESTMENTS (1.5%) CSFB Enhanced Liquidity Portfolio, 5.006% (e) 636,738 637 ------- Total Short-Term Investments (Cost $637) 637 ------- MONEY MARKET FUNDS (2.0%) Federated Government Obligations Money Market Fund 846,461 846 ------- Total Money Market Funds (Cost $846) 846 ------- Total Investments (Cost $43,304) (a) -- 100.9% 42,981 Liabilities in excess of other assets -- (0.9)% (365) ------- Net Assets -- 100.0% $42,616 =======
- --------------- (a) Cost for federal income tax purposes is $43,215 (amount in thousands). Unrealized appreciation/ (depreciation) on a tax basis is as follows (amounts in thousands): Unrealized Appreciation................... $ 22 Unrealized Depreciation................... (255) ----- Unrealized Appreciation (Depreciation).... $(233) =====
(b) Variable rate security. Rate presented represents rate in effect at March 31, 2006. Maturity date represents actual maturity date. (c) Rate represents the effective yield at purchase. (d) This security or a partial position of the security was on loan at March 31, 2006. The total value of securities on loan at March 31, 2006 in thousands was $623. (e) This security was purchased with cash collateral held from securities lending. Cl -- Class RB -- Revenue Bond Ser -- Series See Notes to Financial Statements. 125 SCHEDULES OF PORTFOLIO INVESTMENTS STI CLASSIC FUNDS March 31, 2006 (Amounts in thousands, except Shares) ULTRA-SHORT BOND FUND
- -------------------------------------------------------- Shares or Principal Amount($) Value($) - -------------------------------------------------------- ASSET BACKED SECURITIES (24.4%) AUTOMOBILE ABS (5.6%) Capital One Prime Auto Receivable Trust, Ser 2005-1, Cl A3, 4.320%, 08/15/09 2,375 2,350 Daimler Chrysler Master Owner Trust, Ser 2005-C, Cl A, 4.770%, 12/15/10 (b) 2,025 2,026 Ford Credit Auto Owner Trust, Ser 2005-A, Cl A2, 3.080%, 07/15/07 585 584 Harley-Davidson Motorcycle Trust, Ser 2004-1, Cl A1, 1.400%, 10/15/08 282 280 Honda Auto Receivables Owner Trust, Ser 2005-6, Cl A3, 4.850%, 10/19/09 1,025 1,019 Nissan Auto Receivables Owner Trust, Ser 2003-B, Cl A4, 2.050%, 03/16/09 525 513 Nissan Master Owner Trust Receivables, Ser 2003-A, Cl A1, 4.809%, 09/15/08 (b) 3,000 3,003 USAA Auto Owner Trust, Ser 2004-1, Cl A3, 2.060%, 04/15/08 989 979 Volkswagen Credit Auto Master Trust, Ser 2005-1, Cl A, 4.590%, 07/20/10 (b) 3,000 3,000 -------- 13,754 -------- CREDIT CARD ABS (2.1%) Discover Card Master Trust I, Ser 2005-3, Cl A, 4.769%, 05/15/11 (b) 2,590 2,590 GE Capital Credit Card Master Note Trust, Ser 2004-1, Cl A, 4.799%, 06/15/10 (b) 2,500 2,501 -------- 5,091 -------- DIVERSIFIED FINANCIAL SERVICES (7.0%) Access Group, Inc., Ser 2003-1, Cl A6, 4.700%, 12/26/35 (b) 2,000 2,000 College Loan Corp. Trust, Ser 2005-1, Cl A1, 4.653%, 01/25/14 (b) 2,000 2,001 College Loan Corp. Trust, Ser 2005-2, Cl A1, 4.610%, 01/15/15 (b) 1,615 1,615
- -------------------------------------------------------- Shares or Principal Amount($) Value($) - -------------------------------------------------------- DIVERSIFIED FINANCIAL SERVICES--CONTINUED Morgan Stanley Capital I, Ser 2006-NC2, Cl A2A, 4.703%, 02/25/36 (b) 2,000 2,000 Morgan Stanley Capital I, Ser 2006-HE2, Cl A2A, 4.823%, 03/25/36 (b) 2,000 2,000 Nelnet Student Loan Corp., Ser 2002-A, Cl A7, 4.600%, 06/01/35 (b) 1,650 1,650 Nelnet Student Loan Trust, Ser 2005-4, Cl A1, 4.418%, 12/22/18 (b) 2,074 2,077 SLC Student Loan Trust, Ser 2005-2, Cl A1, 4.910%, 03/15/18 (b) 2,030 2,024 SLM Student Loan Trust, Ser 1998-1, Cl A2, 5.370%, 10/25/11 (b) 1,757 1,771 -------- 17,138 -------- HOME EQUITY ABS (9.4%) Aames Mortgage Investment Trust, Ser 2005-4, Cl 2A1, 4.938%, 10/25/35 (b) 1,463 1,463 Aegis Asset Backed Securities Trust, Ser 2005-2, Cl 1A1, 4.918%, 06/25/35 (b) 726 726 Centex Home Equity, Ser 2005-C, Cl AV1, 4.908%, 06/25/35 (b) 916 916 Centex Home Equity, Ser 2005-D, Cl AV1, 4.928%, 10/25/35 (b) 1,494 1,494 Countrywide Home Equity Loan Trust, Ser 2005-A, Cl A2, 4.989%, 02/15/30 (b) 1,059 1,060 Fieldstone Mortgage Investment Corp, Ser 2006-1, Cl A1, 4.740%, 05/25/36 (b) 2,500 2,500 Household Home Equity Loan Trust, Ser 2005-C, Cl A, 5.066%, 01/20/34 (b) 1,638 1,639 JP Morgan Mortgage Acquisition Corp., Ser 2006-WMC1, Cl A2, 4.846%, 03/25/36 (b) 2,000 2,000
See Notes to Financial Statements. 126 SCHEDULES OF PORTFOLIO INVESTMENTS STI CLASSIC FUNDS March 31, 2006 (Amounts in thousands, except Shares) ULTRA-SHORT BOND FUND -- CONTINUED
- -------------------------------------------------------- Shares or Principal Amount($) Value($) - -------------------------------------------------------- HOME EQUITY ABS--CONTINUED Master Asset Backed Securities Trust, Ser 2005-AB1, Cl A1A, 4.968%, 10/25/32 (b) 1,033 1,033 Master Asset Backed Securities Trust, Ser 2006-WMC1, Cl A1, 4.790%, 02/25/36 (b) 2,500 2,500 Park Place Securities, Inc., Ser 2005-WHQ2, Cl A2A, 4.918%, 05/25/35 (b) 500 500 Residential Asset Mortgage Products, Inc., Ser 2006-NC1, Cl A1, 4.898%, 01/25/36 (b) 1,926 1,926 Residential Asset Securities Corp., Ser 2005-KS8, Cl A1, 4.928%, 07/25/26 (b) 1,790 1,791 Residential Funding Mortgage Securities, Ser 2006-HSA1, Cl A1, 4.928%, 11/25/35 (b) 1,888 1,888 Soundview Home Equity Loan Trust, Ser 2006-0PT2, Cl A1, 4.890%, 05/25/36 (b) 1,740 1,739 -------- 23,175 -------- OTHER ABS (0.3%) CIT Equipment Collateral, Ser 2003-VT1, Cl A3A, 4.906%, 04/20/07 (b) 183 183 Marlin Leasing Receivables LLC, Ser 2005-1A, Cl A1, 4.051%, 08/15/12 (d) 466 466 -------- 649 -------- Total Asset Backed Securities (Cost $59,824) 59,807 -------- COLLATERALIZED MORTGAGE OBLIGATIONS (6.1%) Adjustable Rate Mortgage Trust, Ser 2005-7, Cl 7A21, 5.068%, 10/25/35 (b) 810 801 Banc of America Mortgage Securities, Ser 2005-J, Cl 3A1, 5.276%, 11/25/35 (b) 1,884 1,851 Bear Stearns Commercial Mortgage Securities, Ser 2005-T20, Cl A1, 4.940%, 10/12/42 1,104 1,093
- -------------------------------------------------------- Shares or Principal Amount($) Value($) - -------------------------------------------------------- COLLATERALIZED MORTGAGE OBLIGATIONS--CONTINUED Countrywide Home Loans, Inc., Ser 2004-21, Cl A10, 6.000%, 11/25/34 756 749 Countywide Home Loans, Ser 2002-39, Cl A16, 5.000%, 02/25/33 775 770 Deutsche Mortgage Securities, Inc., Ser 2004-1, Cl 3A3, 3.690%, 12/25/33 68 67 First Horizon Alternative Mortgage Securities, Ser 2005-AA3, Cl 2A1, 5.185%, 05/25/35 (b) 924 915 Indymac Loan Trust, Ser 2006-L1, Cl A1, 4.815%, 04/25/11 (b) 2,500 2,501 J.P. Morgan Chase Commercial Mortgage Securities, Ser 2005-LDP1, Cl A1, 4.116%, 03/15/46 1,060 1,038 Morgan Stanley Capital I, Ser 2006-HQ8, Cl A1, 5.124%, 03/12/44 (b) 1,275 1,268 Opteum Mortgage Acceptance Corp., Ser 2005-4, Cl 1A1A, 4.988%, 11/25/35 (b) 2,027 2,028 Washington Mutual, Ser 2005-AR4, Cl A1, 3.624%, 04/25/35 (b) 693 690 Wells Fargo Mortgage Backed Securities Trust, Ser 2004-S, Cl A5, 3.540%, 09/25/34 (b) 1,125 1,070 -------- Total Collateralized Mortgage Obligations (Cost $14,979) 14,841 -------- COMMERCIAL PAPERS (6.0%) DIVERSIFIED FINANCIAL SERVICES (6.0%) Goldman Sachs Group, Inc. (The), 4.803%, 04/04/06 (c) 2,000 1,999 Merrill Lynch & Co., Inc., 4.774%, 04/04/06 (c) 3,575 3,572 Morgan Stanley, 4.773%, 04/03/06 (c) 3,575 3,573 Societe Generale North America, 4.774%, 04/06/06 (c) 3,575 3,572
See Notes to Financial Statements. 127 SCHEDULES OF PORTFOLIO INVESTMENTS STI CLASSIC FUNDS March 31, 2006 (Amounts in thousands, except Shares) ULTRA-SHORT BOND FUND -- CONTINUED
- -------------------------------------------------------- Shares or Principal Amount($) Value($) - -------------------------------------------------------- DIVERSIFIED FINANCIAL SERVICES--CONTINUED UBS Financial Delaware LLC, 4.832%, 04/03/06 (c) 2,000 1,999 -------- Total Commercial Papers (Cost $14,719) 14,715 -------- CORPORATE BONDS (28.9%) AUTO MANUFACTURERS (1.4%) American Honda Finance Corp., 4.740%, 01/16/07 (b) (d) 2,500 2,503 DaimlerChrysler NA Holdings Corp., 6.400%, 05/15/06 1,000 1,001 -------- 3,504 -------- BANKS (3.8%) Bank One Corp., 7.600%, 05/01/07 1,000 1,022 BankBoston Corp., 6.500%, 12/19/07 765 779 Wachovia Corp., 4.694%, 07/20/07 (b) 2,500 2,503 Wells Fargo & Co., 4.920%, 03/10/08 (b) 3,000 3,002 World Savings Bank FSB, 4.602%, 10/19/07 (b) 2,100 2,100 -------- 9,406 -------- COMMERCIAL SERVICES (0.6%) ERAC USA Finance Co., 6.625%, 05/15/06 (d) 1,000 1,002 ERAC USA Finance Co., 7.350%, 06/15/08 (d) 375 389 -------- 1,391 -------- DIVERSIFIED FINANCIAL SERVICES (15.6%) Allstate Life Global Funding Trusts, Ser 2006-1, 4.980%, 03/23/09 (b) 2,000 1,999 American Express Centurion Bank, 4.831%, 11/16/07 (b) 2,150 2,153 Bear Stearns & Co., Inc. (The), 5.700%, 01/15/07 500 502 Bear Stearns & Co., Inc. (The), 4.810%, 04/29/08 (b) 2,500 2,505 Capital One Financial Corp., 7.250%, 05/01/06 1,000 1,002 Capital One Financial Corp., 8.750%, 02/01/07 500 513
- -------------------------------------------------------- Shares or Principal Amount($) Value($) - -------------------------------------------------------- DIVERSIFIED FINANCIAL SERVICES--CONTINUED CIT Group, Inc., 4.990%, 05/18/07 (b) 2,500 2,506 CIT Group, Inc., 4.000%, 05/08/08 775 754 Citigroup, Inc., 5.000%, 03/06/07 1,000 997 Countrywide Home Loan, Inc., Ser M, 4.970%, 08/25/06 (b) 1,075 1,075 Credit Suisse First Boston USA, Inc., 6.500%, 06/01/08 1,065 1,089 General Electric Capital Corp., 4.125%, 03/04/08 1,500 1,469 General Electric Capital Corp., 4.957%, 03/16/09 (b) 2,250 2,249 Golden West Financial Corp., 4.125%, 08/15/07 550 542 Goldman Sachs Group, Inc. (The), 4.125%, 01/15/08 1,000 980 Goldman Sachs Group, Inc. (The), 5.025%, 12/22/08 (b) 2,250 2,250 Household Finance Corp., 5.750%, 01/30/07 1,000 1,004 HSBC Finance Corp., 4.125%, 03/11/08 1,000 979 John Deere Capital Corp., 3.900%, 01/15/08 1,000 976 JPMorgan Chase & Co., 5.060%, 12/18/06 (b) 3,000 3,004 Lehman Brothers Holdings, Inc., 4.000%, 01/22/08 800 782 Lehman Brothers Holdings, Inc., 4.704%, 10/22/08 (b) 850 851 Merrill Lynch & Co., Inc., 4.831%, 10/27/08 1,000 990 Morgan Stanley, 4.709%, 01/12/07 (b) 2,500 2,502 Morgan Stanley, 5.800%, 04/01/07 1,000 1,005 Salomon Smith Barney Holdings, 6.500%, 02/15/08 750 767 SLM Corp., Ser A, 5.110%, 09/15/06 (b) 3,000 3,003 -------- 38,448 --------
See Notes to Financial Statements. 128 SCHEDULES OF PORTFOLIO INVESTMENTS STI CLASSIC FUNDS March 31, 2006 (Amounts in thousands, except Shares) ULTRA-SHORT BOND FUND -- CONTINUED
- -------------------------------------------------------- Shares or Principal Amount($) Value($) - -------------------------------------------------------- ELECTRIC (0.4%) American Electric Power Co., Inc., Ser A, 6.125%, 05/15/06 209 209 Commonwealth Edison, Co., 7.625%, 01/15/07 640 650 -------- 859 -------- ENERGY (0.6%) Terra, Ser 2006-1A, 4.942%, 04/15/36 (b) 1,500 1,500 -------- INSURANCE (1.3%) MetLife Global Funding, 4.960%, 08/28/06 (b) (d) 3,250 3,251 -------- LODGING (0.5%) Park Place Entertainment, 8.500%, 11/15/06 1,095 1,113 -------- MEDIA (0.6%) Time Warner, Inc., 6.125%, 04/15/06 1,000 1,000 Time Warner, Inc., 6.150%, 05/01/07 500 504 -------- 1,504 -------- OIL & GAS (0.4%) Devon Energy Corp., 2.750%, 08/01/06 1,050 1,041 -------- PIPELINES (0.3%) Arkla, Inc., 8.900%, 12/15/06 660 675 -------- TELECOMMUNICATIONS (3.4%) BellSouth Corp., 4.874%, 11/15/07 (b) 1,940 1,943 Deutsche Telekom AG, 5.120%, 03/23/09 (b) (e) 1,825 1,825 SBC Communications, Inc., 5.750%, 05/02/06 (e) 1,000 1,000 SBC Communications, Inc., 4.951%, 11/14/08 (b) 1,500 1,503 Telecom Italia Capital SA, 4.000%, 11/15/08 545 525 Verizon Global Funding Corp., 6.125%, 06/15/07 575 580 Vodafone Group PLC, 4.611%, 12/28/07 (b) 1,000 1,000 -------- 8,376 -------- Total Corporate Bonds (Cost $71,321) 71,068 --------
- -------------------------------------------------------- Shares or Principal Amount($) Value($) - -------------------------------------------------------- MASTER NOTES (1.2%) BANKS (1.2%) Bank of America Corp., 4.945%, 09/14/06 (b) 3,000 3,000 -------- Total Master Notes (Cost $3,000) 3,000 -------- MUNICIPAL BONDS (1.1%) Missouri Higher Education Loan Authority, Student Loan, Ser D, RB, 4.750%, 07/01/32 (b) 2,600 2,600 -------- Total Municipal Bonds (Cost $2,600) 2,600 -------- U.S. GOVERNMENT AGENCIES (11.2%) FANNIE MAE (4.2%) 5.150%, 09/21/07, Callable 06/21/06 @ 100 4,250 4,241 5.000%, 11/23/07, Callable 05/23/06 @ 100 1,075 1,069 4.200%, 03/24/08 (e) 1,500 1,473 3.250%, 08/15/08 2,200 2,112 4.000%, 01/26/09, Callable 01/26/07 @ 100 1,475 1,433 -------- 10,328 -------- FEDERAL HOME LOAN BANK (1.1%) 4.900%, 11/21/07, Callable 11/21/06 @ 100 2,000 1,991 4.000%, 10/15/08, Callable 04/10/06 @ 100 760 741 -------- 2,732 -------- FREDDIE MAC (5.9%) 4.500%, 08/22/07, Callable 08/22/06 @ 100 (e) 1,750 1,733 4.250%, 06/23/08, Callable 06/23/06 @ 100 3,475 3,416 5.050%, 12/08/08, Callable 12/08/06 @ 100 4,740 4,721 4.625%, 12/19/08 2,305 2,279 4.875%, 02/17/09 2,250 2,238 -------- 14,387 -------- Total U.S. Government Agencies (Cost $27,610) 27,447 --------
See Notes to Financial Statements. 129 SCHEDULES OF PORTFOLIO INVESTMENTS STI CLASSIC FUNDS March 31, 2006 (Amounts in thousands, except Shares) ULTRA-SHORT BOND FUND -- CONTINUED
- -------------------------------------------------------- Shares or Principal Amount($) Value($) - -------------------------------------------------------- U.S. GOVERNMENT AGENCY MORTGAGES (17.7%) FANNIE MAE (5.9%) 7.510%, 04/01/07 1,252 1,262 6.805%, 11/01/07 1,298 1,308 4.500%, 04/25/09 375 374 5.969%, 06/01/09 744 750 6.575%, 07/01/09 1,822 1,867 4.500%, 04/01/10 773 751 3.500%, 06/25/10 724 717 6.250%, 08/25/30 760 763 5.022%, 05/01/32 (b) 430 439 3.657%, 08/01/33 (b) 753 728 5.626%, 09/01/33 (b) 847 853 5.589%, 10/01/33 (b) 1,040 1,063 3.360%, 01/01/34 (b) 860 859 4.337%, 03/01/34 (b) 920 898 4.326%, 06/01/35 (b) 665 655 4.868%, 09/25/35 (b) 1,089 1,089 -------- 14,376 -------- FREDDIE MAC (11.6%) 4.500%, 03/01/08 603 594 4.000%, 05/01/08 1,056 1,027 4.000%, 06/01/08 903 879 4.000%, 03/15/10 1,173 1,167 3.500%, 05/15/11 453 448 4.000%, 11/15/11 708 696 3.750%, 12/15/11 747 723 5.000%, 02/15/14 652 650 4.500%, 02/15/15 (b) 2,100 2,062 5.000%, 05/15/15 3,530 3,519 5.000%, 09/15/15 683 679 4.500%, 11/15/15 804 790 5.500%, 12/15/15 67 67 5.000%, 12/15/17 799 796 5.049%, 01/15/18 (b) 3,928 3,934 3.500%, 05/15/19 443 436 5.000%, 12/15/20 787 784
- -------------------------------------------------------- Shares or Principal Amount($) Value($) - -------------------------------------------------------- FREDDIE MAC--CONTINUED 3.000%, 04/15/21 2,069 2,044 3.000%, 04/15/21 2,258 2,230 4.000%, 04/15/21 485 481 4.500%, 04/15/25 2,281 2,239 3.669%, 08/01/33 (b) 772 753 4.273%, 03/01/34 (b) 1,272 1,243 4.972%, 04/01/34 (b) 294 291 -------- 28,532 -------- GOVERNMENT NATIONAL MORTGAGE ASSOCIATION (0.2%) 5.987%, 02/16/24 (b) 500 507 -------- Total U.S. Government Agency Mortgages (Cost $43,951) 43,415 -------- U.S. TREASURY OBLIGATIONS (3.6%) U.S. TREASURY NOTES (3.6%) 4.375%, 11/15/08 (e) 5,750 5,685 4.500%, 02/15/09 (e) 3,200 3,172 -------- Total U.S. Treasury Obligations (Cost $8,895) 8,857 -------- SHORT-TERM INVESTMENTS (5.9%) CSFB Enhanced Liquidity Portfolio, 5.006% (f) 14,416,569 14,417 -------- Total Short-Term Investments (Cost $14,417) 14,417 -------- MONEY MARKET FUNDS (1.8%) Federated Prime Value Money Market Fund 4,451,750 4,452 -------- Total Money Market Funds (Cost $4,452) 4,452 -------- Total Investments (Cost $265,768) (a) -- 107.9% 264,619 Liabilities in excess of other assets -- (7.9)% (19,362) -------- Net Assets -- 100.0% $245,257 ========
See Notes to Financial Statements. 130 SCHEDULES OF PORTFOLIO INVESTMENTS STI CLASSIC FUNDS March 31, 2006 (Amounts in thousands, except Shares) ULTRA-SHORT BOND FUND -- CONCLUDED - --------------- (a)Cost for federal income tax purposes is $265,669 (amount in thousands). Unrealized appreciation/(depreciation) on a tax basis is as follows (amounts in thousands): Unrealized Appreciation.................. $ 182 Unrealized Depreciation.................. (1,232) ------- Unrealized Appreciation (Depreciation)... $(1,050) =======
(b)Variable rate security. Rate presented represents rate in effect at March 31, 2006. Maturity date represents actual maturity date. (c)Rate represents the effective yield at purchase. (d)Rule 144A, Section 4(2) or other security which is restricted as to resale to institutional investors. The Fund's advisor has deemed this security to be liquid based upon procedures approved by the Board of Trustees. (e)This security or a partial position of the security was on loan at March 31, 2006. The total value of securities on loan at March 31, 2006 in thousands was $13,985. (f)This security was purchased with cash collateral held from securities lending. Cl -- Class LLC -- Limited Liability Corporation PLC -- Public Limited Company RB -- Revenue Bond Ser -- Series See Notes to Financial Statements. 131 SCHEDULES OF PORTFOLIO INVESTMENTS STI CLASSIC FUNDS March 31, 2006 (Amounts in thousands, except Shares) VIRGINIA INTERMEDIATE MUNICIPAL BOND FUND
- -------------------------------------------------------- Shares or Principal Amount($) Value($) - -------------------------------------------------------- MUNICIPAL BONDS (96.9%) VIRGINIA (92.7%) Albemarle County Industrial Development Authority, Residential Care Facilities, Ser A, RB, 5.000%, 01/01/07, Callable 05/15/06 @ 100.5 55 55 Arlington County Industrial Development Authority, Hospital Facilities, RB, 5.500%, 07/01/06 2,000 2,009 Arlington County Industrial Development Authority, Hospital Facilities, RB, 5.500%, 07/01/11 2,000 2,133 Arlington County Industrial Development Authority, Hospital Facilities, RB, 5.500%, 07/01/17, Callable 07/01/11 @ 101 2,225 2,420 Arlington County Industrial Development Authority, Resource Recovery, Ser B, RB, AMT, 5.375%, 01/01/11, Callable 07/01/08 @ 101 2,785 2,878 Chesapeake Water & Sewer Project, GO, 5.000%, 12/01/19, Callable 12/01/14 @ 101 2,465 2,618 Chesapeake, GO, 5.400%, 12/01/08 2,500 2,611 Chesterfield County Public Improvement, GO, 5.000%, 01/01/14 3,440 3,691 Commonwealth Transportation Board, Ser A, RB, 5.375%, 05/15/13, Callable 05/01/11 @ 100 2,045 2,186 Fairfax County Industrial Development Authority, Health Care, Inova Health System Project, RB, 6.000%, 08/15/26, Callable 08/15/06 @ 102 810 833 Fairfax County Water Authority, RB, 6.000%, 04/01/22, Callable 04/01/07 @ 102 5,590 5,824
- -------------------------------------------------------- Shares or Principal Amount($) Value($) - -------------------------------------------------------- VIRGINIA--CONTINUED Fairfax County, Public Improvement, Ser A, GO, 5.000%, 06/01/06 1,000 1,003 Fauquier County Industrial Development Authority, RB, 5.000%, 10/01/06, LOC: Radian 1,180 1,188 Front Royal & Warren County Development Authority, Ser B, RB, 5.000%, 04/01/23, Callable 04/01/14 @ 100 2,485 2,590 Greater Richmond Convention Center Authority, Hotel Tax, RB, 6.000%, 06/15/13, Callable 06/15/10 @ 101 3,185 3,492 Greater Richmond Convention Center Authority, Hotel Tax, RB, 5.000%, 06/15/14, MBIA 1,575 1,675 Greater Richmond Convention Center Authority, Hotel Tax, RB, 5.000%, 06/15/16, Callable 06/15/15 @ 100, MBIA 2,855 3,028 Halifax County Industrial Development Authority, RB, 3.000%, 09/01/06 1,125 1,122 Hampton, Ser A, GO, 5.500%, 07/15/18, Callable 07/15/12 @ 101 1,275 1,395 Hanover County Industrial Development Authority, Regional Medical Care Project, RB, 6.375%, 08/15/18, MBIA 5,100 5,923 Henrico County Economic Development Authority, Residential Care Facilities, Baptist Homes, Ser A, RB, 4.500%, 07/01/10, Callable 07/01/07 @ 101 750 749 Henrico County Economic Development Authority, Residential Care Facilities, Baptist Homes, Ser B, RB, 4.750%, 07/01/40, Callable 12/01/07 @ 101 1,750 1,752
See Notes to Financial Statements. 132 SCHEDULES OF PORTFOLIO INVESTMENTS STI CLASSIC FUNDS March 31, 2006 (Amounts in thousands, except Shares) VIRGINIA INTERMEDIATE MUNICIPAL BOND FUND -- CONTINUED
- -------------------------------------------------------- Shares or Principal Amount($) Value($) - -------------------------------------------------------- VIRGINIA--CONTINUED Henrico County Economic Development Authority, Residential Care Facilities, Ser A, RB, 3.750%, 06/01/06 255 255 Henrico County Economic Development Authority, Residential Care Facilities, Ser A, RB, 4.250%, 06/01/07 525 528 Henrico County Economic Development Authority, Residential Care Facilities, Ser A, RB, 5.000%, 06/01/10 1,000 1,028 Henrico County Economic Development Authority, Residential Care Facilities, Ser A, RB, 6.500%, 06/01/22, Callable 06/01/12 @ 100 1,000 1,068 Henrico County Industrial Development Authority, Bon Secours Health System, Ser B, RB, 5.150%, 06/01/07, Callable 06/01/06 @ 102, MBIA 2,500 2,545 Henrico County, GO, 5.000%, 01/15/08 2,220 2,275 Lexington Industrial Development Authority, Hospital Facility, Ser E01, RB, 3.230%, 07/01/30, Callable 07/01/10 @ 102, LOC: Wachovia Bank NA (b) 3,080 3,079 Loudoun County Industrial Development Authority, Loudoun Hospital Center, RB, 6.000%, 06/01/22, Prerefunded 06/01/12 @ 101 1,000 1,116 Loudoun County Industrial Development Authority, Residential Care Facilities, Ser A, RB, 6.000%, 08/01/24, Callable 08/01/14 @ 100 1,000 1,055 Loudoun County Industrial Development Authority, Residential Care Facilities, Ser B, RB, 5.000%, 08/01/28, Callable 08/01/07 @ 101 1,100 1,135
- -------------------------------------------------------- Shares or Principal Amount($) Value($) - -------------------------------------------------------- VIRGINIA--CONTINUED Loudoun County Sanitation Authority, Water & Sewage, RB, 5.000%, 01/01/25, Callable 01/01/15 @ 100 3,165 3,313 Loudoun County, Public Improvement, Ser B, GO, 5.000%, 06/01/14 3,500 3,763 Loudoun County, Public Improvement, Ser B, GO, 5.000%, 06/01/16, Callable 06/01/15 @ 100 4,635 4,976 Loudoun County, Ser A, GO, 5.000%, 07/01/13 3,000 3,214 Louisa Industrial Development Authority, Pollution Control, Electric & Power Co., RB, 5.250%, 12/01/08, Callable 11/08/06 @ 101 650 662 Montgomery County Industrial Development Authority, RB, 5.500%, 01/15/18, Callable 01/15/12 @ 101, AMBAC 1,865 2,026 Newport News, GO, 5.250%, 07/01/15 3,000 3,280 Norfolk Industrial Development Authority, RB, 6.900%, 06/01/06, AMBAC 1,000 1,005 Peninsula Ports Authority, Residential Care Facility, Ser A, RB, 7.375%, 12/01/23, Callable 12/01/13 @ 100 1,525 1,701 Portsmouth, Ser A, GO, 5.000%, 04/01/14 2,005 2,147 Richmond, GO, 5.500%, 01/15/12, Callable 01/15/11 @ 101, FSA 2,500 2,706 Richmond, GO, 5.500%, 01/15/18, Callable 01/10/11 @ 101, FSA 2,755 2,965 Roanoke Industrial Development Authority, Carilion Health System, Ser A, RB, 5.750%, 07/01/13, Callable 07/01/12 @ 100 2,000 2,181
See Notes to Financial Statements. 133 SCHEDULES OF PORTFOLIO INVESTMENTS STI CLASSIC FUNDS March 31, 2006 (Amounts in thousands, except Shares) VIRGINIA INTERMEDIATE MUNICIPAL BOND FUND -- CONTINUED
- -------------------------------------------------------- Shares or Principal Amount($) Value($) - -------------------------------------------------------- VIRGINIA--CONTINUED Roanoke Industrial Development Authority, Carilion Health System, Ser A, RB, 5.750%, 07/01/14, Callable 07/01/12 @ 100 2,000 2,174 Roanoke Industrial Development Authority, Carilion Health System, Ser A, RB, 5.500%, 07/01/18, Callable 07/01/12 @ 100 2,000 2,131 Roanoke Industrial Development Authority, Carilion Health System, Ser C2, RB, 3.140%, 07/01/27, FSA (b) 1,000 1,000 Roanoke Public Improvement, Ser B, GO, 5.000%, 02/01/24, Callable 02/01/15 @ 101 2,500 2,633 Russell County Industrial Development Authority, Pollution Control, Appalachian Power Co. Project, Ser I, RB, 2.700%, 11/01/07, Mandatory Put 11/01/06 @ 100 1,000 992 Southeastern Public Service Authority, Ser A, RB, 5.100%, 07/01/08, MBIA 1,660 1,713 Southwest Regional Jail Authority Facilities, RB, 3.000%, 09/01/06 1,750 1,747 Spotsylvania County Water & Sewer, RB, 5.000%, 06/01/26, FSA 2,635 2,750 Tobacco Settlement Financing Corp., RB, 4.000%, 06/01/13 1,000 998 Tobacco Settlement Financing Corp., RB, 5.250%, 06/01/19, Callable 06/01/15 @ 100 1,750 1,786 Tobacco Settlement Financing Corp., RB, 5.500%, 06/01/26, Callable 06/01/15 @ 100 3,000 3,076 University of Virginia, Ser A, RB, 3.100%, 06/01/34 (b) 2,000 2,000 Virginia Beach Development Authority, Ser A, RB, 5.375%, 08/01/16, Callable 08/01/12 @ 100 1,650 1,776
- -------------------------------------------------------- Shares or Principal Amount($) Value($) - -------------------------------------------------------- VIRGINIA--CONTINUED Virginia Beach, Public Improvement, Ser B, GO, 5.000%, 05/01/13 2,500 2,664 Virginia College Building Authority, Educational Facilities Project, RB, 5.375%, 01/01/21, Callable 01/01/16 @ 100 3,090 3,457 Virginia College Building Authority, Educational Facilities Project, Ser A, RB, 5.000%, 02/01/15, Callable 02/01/14 @ 100 4,510 4,801 Virginia College Building Authority, Educational Facilities, Public Higher Education Financing Program, Ser A, RB, 5.000%, 09/01/10 3,000 3,157 Virginia Housing Development Authority, Commonwealth Mortgage Project, Ser A, RB, AMT, 2.000%, 07/01/06 750 747 Virginia Housing Development Authority, Multifamily, Ser E, RB, AMT, 5.350%, 11/01/11, Callable 01/01/08 @ 102 1,250 1,300 Virginia Housing Development Authority, Multifamily, Ser H, RB, AMT, 5.625%, 11/01/18, Callable 11/01/09 @ 100 3,500 3,617 Virginia Housing Development Authority, Multifamily, Ser I, RB, AMT, 4.875%, 11/01/12, Callable 01/01/09 @ 101 1,950 1,997 Virginia Polytechnic Institute & State University, Ser D, RB, 5.125%, 06/01/21, Callable 06/01/14 @ 101, AMBAC 1,095 1,172 Virginia Port Authority, Commonwealth Port Fund, RB, AMT, 5.900%, 07/01/16, Callable 07/01/06 @ 101 2,000 2,031 Virginia Public School Authority, School Financing, Ser B, RB, 5.125%, 08/01/13, Prerefunded 08/01/06 @ 102, LOC: St Aid Withholding 1,000 1,025
See Notes to Financial Statements. 134 SCHEDULES OF PORTFOLIO INVESTMENTS STI CLASSIC FUNDS March 31, 2006 (Amounts in thousands, except Shares) VIRGINIA INTERMEDIATE MUNICIPAL BOND FUND -- CONCLUDED
- -------------------------------------------------------- Shares or Principal Amount($) Value($) - -------------------------------------------------------- VIRGINIA--CONTINUED Virginia Public School Authority, Ser B, RB, 5.000%, 08/01/13, Callable 08/01/10 @ 101 2,910 3,070 Virginia State Resource Authority, Senior Infrastructure, Ser B, RB, 5.000%, 11/01/26, Callable 11/01/14 @ 100 2,185 2,287 Virginia Transportation Board Contract, Ser B, RB, 6.750%, 05/15/06 3,605 3,619 Winchester, Public Improvement, GO, 5.000%, 11/01/18, Callable 11/01/15 @ 100, FGIC 2,580 2,752 York County Industrial Development Authority, Pollution Control Project, RB, 5.500%, 07/01/09, Callable 11/08/06 @ 101 640 652 -------- 162,322 -------- PUERTO RICO (4.2%) Puerto Rico Commonwealth Highway & Transportation Authority, Ser AA, RB, 5.000%, 07/01/06 1,500 1,505 Puerto Rico Electric Power Authority, Ser RR, RB, 5.000%, 07/01/26, Callable 07/01/15 @ 100, XLCA 2,610 2,730 Puerto Rico Municipal Financial Agency, Ser A, GO, 5.000%, 08/01/22, Callable 08/01/15 @ 100, FSA 3,000 3,174 -------- 7,409 -------- Total Municipal Bonds (Cost $168,194) 169,731 --------
- -------------------------------------------------------- Shares or Principal Amount($) Value($) - -------------------------------------------------------- MONEY MARKET FUNDS (0.4%) Federated Virginia Municipal Cash Trust, Institutional Class 753,807 754 -------- Total Money Market Funds (Cost $754) 754 -------- Total Investments (Cost $168,948) (a) -- 97.3% 170,485 Other assets in excess of liabilities -- 2.7% 4,747 -------- Net Assets -- 100.0% $175,232 ========
- --------------- (a)Cost for federal income tax purposes is $168,931 (amount in thousands). Unrealized appreciation/(depreciation) on a tax basis is as follows (amounts in thousands): Unrealized Appreciation................... $2,354 Unrealized Depreciation................... (800) ------ Unrealized Appreciation (Depreciation).... $1,554 ======
(b)Variable rate security. Rate presented represents rate in effect at March 31, 2006. Maturity date represents actual maturity date. AMBAC -- Security insured by the American Municipal Bond Assurance Corporation AMT -- Alternative Minimum Tax Paper FGIC -- Security insured by the Financial Guaranty Insurance Company FSA -- Security insured by Financial Security Assurance GO -- General Obligation LOC -- Line of Credit MBIA -- Security insured by the Municipal Bond Insurance Association RB -- Revenue Bond Ser -- Series XLCA -- Security insured by XL Capital Assurance, Inc. See Notes to Financial Statements. 135 SCHEDULES OF PORTFOLIO INVESTMENTS STI CLASSIC FUNDS March 31, 2006 (Amounts in thousands, except Shares) VIRGINIA MUNICIPAL BOND FUND
- --------------------------------------------------------- Shares or Principal Amount($) Value($) - --------------------------------------------------------- MUNICIPAL BONDS (96.7%) DISTRICT OF COLUMBIA (1.9%) Metropolitan Washington Airports Authority, Airport System, Ser A, RB, AMT, 5.500%, 10/01/27, Callable 10/01/11 @ 101 1,000 1,064 ------- VIRGINIA (92.8%) Amherst County Service Authority, RB, 6.000%, 12/15/20, Callable 12/15/10 @ 102 500 524 Amherst County Service Authority, RB, 6.000%, 12/15/30, Callable 12/15/10 @ 102 1,750 1,815 Blacksburg Polytechnic Institute Sanitation Authority, Sewer System, RB, 4.150%, 11/01/06 500 502 Bristol Utility System, RB, 5.250%, 07/15/23, Callable 07/15/13 @ 100, MBIA 1,000 1,067 Chesapeake Bay Bridge & Tunnel Commission, Ser A39, RB, 3.210%, 07/01/25, MBIA (b) 1,495 1,495 Fairfax County Sewer, RB, 5.800%, 07/15/22, Callable 07/15/06 @ 102, MBIA 1,000 1,026 Fairfax County, GO, 5.000%, 01/15/26, Callable 01/15/15 @ 100 1,000 1,050 Fairfax County, Ser A, GO, 5.000%, 04/01/16, Callable 04/01/14 @ 100 1,000 1,066 Greater Richmond Convention Center Authority, Hotel Tax, RB, 5.500%, 06/15/08 550 569 Greater Richmond Convention Center Authority, Hotel Tax, RB, 5.000%, 06/15/25, Callable 06/15/15 @ 100, MBIA 1,000 1,042 Greater Richmond Convention Center Authority, Hotel Tax, RB, 6.125%, 06/15/25, Callable 06/15/10 @ 101 1,200 1,321 Hampton Virginia Golf Course, RB, 6.000%, 12/01/12 866 886
- --------------------------------------------------------- Shares or Principal Amount($) Value($) - --------------------------------------------------------- VIRGINIA--CONTINUED Hanover County Industrial Development Authority, Regional Medical Care Project, RB, 6.375%, 08/15/18, MBIA 1,000 1,161 Henrico County Economic Development Authority, Residential Care Facilities, Baptist Homes, Ser A, RB, 5.500%, 07/01/38, Callable 07/01/15 @ 100 500 498 Henrico County Economic Development Authority, Ser A, RB, 5.850%, 07/20/19, Callable 07/20/09 @ 102, GNMA 400 426 Henrico County Economic Development Authority, Ser A, RB, 5.900%, 07/20/29, Callable 07/20/09 @ 102, GNMA 500 538 Henrico County Industrial Development Authority, RB, AMT, 3.350%, 03/01/16, Callable 05/15/06 @ 100, LOC: First Union National Bank 985 968 Henry County Public Service Authority, Water & Sewer, RB, 5.250%, 11/15/13, FSA 1,500 1,623 Loudoun County Industrial Development Authority, Public Safety Facilities Lease, Ser A, RB, 5.250%, 12/15/17, Callable 06/15/14 @ 100 1,110 1,190 Loudoun County Industrial Development Authority, Residential Care Facilities, Ser A, RB, 6.000%, 08/01/24, Callable 08/01/14 @ 100 750 791 Loudoun County Public Improvement, Ser B, GO, 5.000%, 06/01/17, Callable 06/01/15 @ 100 1,000 1,071 Lynchburg Industrial Development Authority, Healthcare Facilities, Centra Health, RB, 5.200%, 01/01/23, Prerefunded 01/01/08 @ 101 1,015 1,050
See Notes to Financial Statements. 136 SCHEDULES OF PORTFOLIO INVESTMENTS STI CLASSIC FUNDS March 31, 2006 (Amounts in thousands, except Shares) VIRGINIA MUNICIPAL BOND FUND -- CONTINUED
- --------------------------------------------------------- Shares or Principal Amount($) Value($) - --------------------------------------------------------- VIRGINIA--CONTINUED Newport News Redevelopment & Housing Authority, RB, 5.850%, 12/20/30, Callable 08/20/07 @ 102, GNMA 500 516 Peninsula Ports Authority, Residential Care Facility, Ser A, RB, 7.375%, 12/01/23, Callable 12/01/13 @ 100 525 586 Pittsylvania County, Ser B, GO, 5.625%, 03/01/15, Callable 03/01/11 @ 102, MBIA 1,000 1,095 Prince William County Virginia, Industrial Development Authority, ATCC Lease Project, RB, 5.250%, 02/01/16 1,055 1,145 Richmond Industrial Development Authority, Student Housing, RB, 5.450%, 01/01/21, Callable 01/01/11 @ 102 1,000 1,062 Richmond Public Utility, RB, 5.000%, 01/15/23, Callable 01/15/15 @ 100, FSA 1,000 1,049 Richmond, GO, 5.500%, 01/15/15, Callable 01/15/11 @ 101 1,290 1,390 Richmond, GO, 5.500%, 01/15/18, Callable 01/10/11 @ 101, FSA 1,000 1,076 Richmond, Public Improvement, Ser B, GO, 5.000%, 07/15/16, Callable 07/15/15 @ 100, FSA 1,000 1,068 Roanoke Industrial Development Authority, Carilion Health System, Ser A, RB, 5.500%, 07/01/16, Callable 07/01/12 @ 100, MBIA 1,000 1,067 Roanoke Industrial Development Authority, Carilion Health System, Ser A, RB, 5.500%, 07/01/21, Callable 07/01/12 @ 100, MBIA 1,000 1,067 Southeastern Public Service Authority, Ser A, RB, 5.100%, 07/01/08, MBIA 1,000 1,032 Spotsylvania County Water & Sewer Systems, RB, 5.000%, 06/01/15, FSA 1,000 1,072
- --------------------------------------------------------- Shares or Principal Amount($) Value($) - --------------------------------------------------------- VIRGINIA--CONTINUED Spotsylvania County Water & Sewer, RB, 5.000%, 06/01/26, FSA 1,000 1,044 Tobacco Settlement Financing Corp., RB, 4.000%, 06/01/13 1,000 998 Tobacco Settlement Financing Corp., RB, 5.250%, 06/01/19, Callable 06/01/15 @ 100 240 245 Tobacco Settlement Financing Corp., RB, 5.500%, 06/01/26, Callable 06/01/15 @ 100 1,000 1,025 University of Virginia, RB, 5.000%, 06/01/17, Callable 06/01/15 @ 100 1,000 1,067 Upper Occoquan Sewer Authority, RB, 5.000%, 07/01/21, Callable 07/01/15 @ 100, FSA 1,000 1,055 Upper Occoquan Sewer Authority, RB, 5.000%, 07/01/25, Callable 07/01/15 @ 100, FSA 1,000 1,049 Virginia College Building Authority, Educational Facilities, Public Higher Education Financing Program, Ser A, RB, 5.000%, 09/01/10 1,245 1,310 Virginia Commonwealth Transportation Board, Ser A, RB, 5.375%, 05/15/12, Callable 05/15/11 @ 100 1,000 1,073 Virginia Housing Development Authority, Ser D, RB, AMT, 5.375%, 04/01/06 715 715 Virginia Polytechnic Institute & State University, Ser D, RB, 5.125%, 06/01/21, Callable 06/01/14 @ 101, AMBAC 1,000 1,071 Virginia Port Authority, Commonwealth Port Fund, RB, AMT, 5.900%, 07/01/16, Callable 07/01/06 @ 101 1,000 1,015 Virginia Public School Authority, 5.000%, 08/01/15 1,000 1,071 Virginia Public School Authority, Ser A, RB, 5.000%, 08/01/24, Callable 08/01/14 @ 100 1,365 1,428
See Notes to Financial Statements. 137 SCHEDULES OF PORTFOLIO INVESTMENTS STI CLASSIC FUNDS March 31, 2006 (Amounts in thousands, except Shares) VIRGINIA MUNICIPAL BOND FUND -- CONCLUDED
- --------------------------------------------------------- Shares or Principal Amount($) Value($) - --------------------------------------------------------- VIRGINIA--CONTINUED Virginia Resources Authority, Infrastructure, RB, 5.000%, 11/01/22, Callable 11/01/13 @ 100 1,250 1,307 Virginia Resources Authority, Infrastructure, Ser A, RB, 5.800%, 05/01/30, Callable 05/01/11 @ 101, MBIA 1,500 1,635 ------- 52,012 ------- PUERTO RICO (2.0%) Puerto Rico Public Building Authority, Ser C, RB, 5.500%, 07/01/15, CFIG 1,025 1,137 ------- Total Municipal Bonds (Cost $53,291) 54,213 ------- MONEY MARKET FUNDS (1.4%) Federated Virginia Municipal Cash Trust, Institutional Class 807,723 808 ------- Total Money Market Funds (Cost $808) 808 ------- Total Investments (Cost $54,099) (a) -- 98.1% 55,021 Other assets in excess of liabilities -- 1.9% 1,079 ------- Net Assets -- 100.0% $56,100 =======
- --------------- (a)Cost for federal income tax purposes is $54,090 (amount in thousands). Unrealized appreciation/ (depreciation) on a tax basis is as follows (amounts in thousands): Unrealized Appreciation................... $1,201 Unrealized Depreciation................... (270) ------ Unrealized Appreciation (Depreciation).... $ 931 ======
(b)Variable rate security. Rate presented represents rate in effect at March 31, 2006. Maturity date represents actual maturity date. AMBAC -- Security insured by the American Municipal Bond Assurance Corporation AMT -- Alternative Minimum Tax Paper FSA -- Security insured by Financial Security Assurance GNMA -- Security insured by the Government National Mortgage Association GO -- General Obligation LOC -- Line of Credit MBIA -- Security insured by the Municipal Bond Insurance Association RB -- Revenue Bond Ser -- Series See Notes to Financial Statements. 138 SCHEDULES OF PORTFOLIO INVESTMENTS STI CLASSIC FUNDS March 31, 2006 (Amounts in thousands, except Shares) PRIME QUALITY MONEY MARKET FUND
- ------------------------------------------------------- Shares or Principal Amount($) Value($) - ------------------------------------------------------- CERTIFICATES OF DEPOSIT (16.1%) BANKS (15.4%) Calyon, Inc. NY, 4.300%, 04/26/06 40,000 39,997 Calyon, Inc. NY, 4.780%, 01/12/07 50,000 50,004 Canadian Imperial Bank NY, 4.800%, 01/29/07 (b) 50,000 50,000 Credit Agricole SA, 4.500%, 04/10/06 50,000 50,000 Credit Agricole SA, 4.805%, 01/29/07 50,000 50,000 Credit Suisse NY, 4.825%, 05/22/06 25,000 25,000 Credit Suisse NY, 4.800%, 01/16/07 39,000 39,001 Credit Suisse NY, 5.210%, 03/29/07 50,000 50,002 Credit Suisse NY, 4.740%, 05/19/06 (b) 50,000 50,000 Deutsche Bank AG, 4.805%, 02/21/07 75,000 74,956 First Tennessee Bank, 4.780%, 04/28/06 50,000 50,000 Fortis Bank NY, 4.790%, 05/03/06 50,000 50,000 Fortis Bank NY, 3.610%, 06/07/06 50,000 50,000 HSBC Bank PLC, 4.560%, 04/19/06 50,000 49,997 National City Bank, 4.860%, 10/12/06 (b) 50,000 50,012 Nordea Bank Finland PLC NY, 4.820%, 01/30/07 50,000 50,002 Royal Bank of Canada NY, 4.695%, 05/19/06 50,000 50,000 Royal Bank of Scotland NY, 4.755%, 10/27/06 25,000 25,001 Royal Bank of Scotland NY, 4.840%, 01/30/07 50,000 50,000 Swedbank, 4.865%, 02/02/07 50,000 50,002 Toronto-Dominion Bank, 3.635%, 04/10/06 75,000 75,001 Wells Fargo Bank NA, 4.800%, 01/19/07 (b) 50,000 50,000 ---------- 1,078,975 ----------
- ------------------------------------------------------- Shares or Principal Amount($) Value($) - ------------------------------------------------------- DIVERSIFIED FINANCIAL SERVICES (0.7%) Alliance & Leicester PLC, 4.520%, 04/21/06 50,000 49,999 ---------- Total Certificates of Deposit (Cost $1,128,974) 1,128,974 ---------- COMMERCIAL PAPERS (34.6%) BANKS (9.1%) Allied Irish Banks N.A., 4.614%, 04/03/06 (c) (d) 20,000 19,995 Allied Irish Banks N.A., 4.624%, 04/13/06 (c) (d) 50,000 49,924 ANZ National International Ltd., 4.942%, 07/10/06 (c) (d) 7,850 7,744 ASB Bank Ltd., 4.626%, 04/21/06 (c) (d) 49,000 48,875 DnB Nor Bank ASA, 4.470%, 04/05/06 (c) 50,000 49,975 Rabobank USA Financial Corp., 4.329%, 04/03/06 (c) 32,025 32,017 Santander Central Hispano International Ltd., 4.910%, 06/23/06 (c) (d) 30,000 29,665 Santander Central Hispano International Ltd., 4.923%, 07/18/06 (c) (d) 50,000 49,274 Societe Generale North America, 4.784%, 04/03/06 (c) 75,000 74,980 Societe Generale North America, 4.662%, 09/05/06 (c) 50,000 49,014 Spintab AB, 4.469%, 04/04/06 (c) 48,000 47,982 Swedbank, 4.480%, 04/04/06 (c) 75,000 74,972 Swedbank, 4.730%, 07/19/06 (c) 50,000 49,300 Westpac Banking Corp., 4.703%, 06/30/06 (c) (d) 50,000 49,424 ---------- 633,141 ----------
See Notes to Financial Statements. 139 SCHEDULES OF PORTFOLIO INVESTMENTS STI CLASSIC FUNDS March 31, 2006 (Amounts in thousands, except Shares) PRIME QUALITY MONEY MARKET FUND -- CONTINUED
- ------------------------------------------------------- Shares or Principal Amount($) Value($) - ------------------------------------------------------- DIVERSIFIED FINANCIAL SERVICES (22.0%) Amstel Funding Corp., 4.672%, 05/03/06 (c) (d) 60,000 59,754 Amstel Funding Corp., 4.544%, 05/08/06, LOC: ABN Amro Bank N.V. (c) (d) 23,876 23,767 Barton Capital LLC, 4.579%, 04/10/06, LOC: AMBAC/ Societe Generale (c) (d) 75,000 74,916 Bear Stearns & Co., Inc., 4.810%, 09/15/06 (b) (d) 50,000 50,000 BNP Paribas, 4.339%, 04/03/06 (c) 30,000 29,993 Cheyne Finance LLC, 4.694%, 04/24/06 (c) (d) 44,775 44,642 CIT Group, Inc., 4.285%, 04/06/06 (c) 36,000 35,979 CIT Group, Inc., 4.404%, 04/11/06 (c) 25,000 24,970 CIT Group, Inc., 4.706%, 05/22/06 (c) 17,650 17,534 Cullinan Finance Corp., 4.559%, 04/12/06 (c) (d) 11,293 11,277 Cullinan Finance Corp., 4.848%, 05/25/06 (c) (d) 50,000 49,639 Cullinan Finance Corp., 4.815%, 06/01/06 (c) (d) 34,141 33,866 Danske Corp., 4.776%, 04/07/06 (c) (d) 46,000 45,963 Dexia Delaware LLC, 4.474%, 04/04/06 (c) 17,500 17,494 Dexia Delaware LLC, 4.474%, 04/05/06 (c) 50,000 49,975 Dresdner US Finance, Inc., 4.510%, 04/11/06 (c) 50,000 49,938 Dresdner US Finance, Inc., 4.462%, 04/17/06 (c) 25,000 24,951 Dresdner US Finance, Inc., 4.546%, 05/08/06 (c) 25,000 24,885 Fairway Finance Corp., 4.779%, 04/12/06, LOC: Bank of Montreal (c) (d) 50,000 49,927
- ------------------------------------------------------- Shares or Principal Amount($) Value($) - ------------------------------------------------------- DIVERSIFIED FINANCIAL SERVICES--CONTINUED Fairway Finance Corp., 4.792%, 05/01/06, LOC: Bank of Montreal (c) (d) 50,000 49,801 Fairway Finance Corp., 5.015%, 09/13/06, LOC: Bank of Montreal (c) (d) 10,390 10,157 Five Finance, Inc., 4.618%, 04/11/06 (c) (d) 16,600 16,579 Five Finance, Inc., 4.783%, 04/19/06 (c) (d) 6,400 6,385 Fortis Funding LLC, 4.606%, 04/03/06 (c) (d) 50,000 49,987 Grampian Funding LLC, 4.536%, 05/08/06, LOC: HBOS Treasury Services PLC (c) (d) 50,000 49,771 Greenwich Capital Holdings, Inc., 4.590%, 08/25/06 (b) (d) 50,000 50,000 Greenwich Capital Holdings, Inc., 4.651%, 09/11/06 (b) 25,000 25,000 HBOS Treasury Services PLC, 4.485%, 04/06/06 (c) 59,700 59,663 HSBC USA, Inc., 4.480%, 04/04/06 (c) 26,000 25,990 ING US Funding LLC, 4.588%, 04/07/06 (c) 50,000 49,962 Kitty Hawk Funding Corp., 4.707%, 04/03/06, LOC: Bank of America NA (c) (d) 11,711 11,708 National Australia Funding Delaware, Inc., 4.727%, 04/04/06 (c) (d) 20,400 20,392 Nordea North America, Inc., 4.584%, 05/25/06 (c) 11,500 11,423 Old Line Funding LLC, 4.852%, 04/03/06, LOC: Royal Bank of Canada (c) (d) 55,027 55,012 Old Line Funding LLC, 4.572%, 04/04/06, LOC: Royal Bank of Canada (c) (d) 18,525 18,518
See Notes to Financial Statements. 140 SCHEDULES OF PORTFOLIO INVESTMENTS STI CLASSIC FUNDS March 31, 2006 (Amounts in thousands, except Shares) PRIME QUALITY MONEY MARKET FUND -- CONTINUED
- ------------------------------------------------------- Shares or Principal Amount($) Value($) - ------------------------------------------------------- DIVERSIFIED FINANCIAL SERVICES--CONTINUED Old Line Funding LLC, 4.711%, 04/07/06, LOC: Royal Bank of Canada (c) (d) 9,178 9,171 Old Line Funding LLC, 4.783%, 04/19/06, LOC: Royal Bank of Canada (c) (d) 13,571 13,539 Park Avenue Receivables Corp., 4.757%, 04/18/06, LOC: JPMorgan Chase Bank (c) (d) 56,211 56,085 Scaldis Capital LLC, 4.948%, 07/19/06, LOC: Fortis Bank SA/NV (c) (d) 21,864 21,542 Solitaire Funding LLC, 5.025%, 09/27/06, LOC: HSBC Bank PLC (c) (d) 50,000 48,782 Southern Co. Funding Corp., 4.743%, 04/12/06 (c) (d) 17,000 16,975 Stanfield Victoria Funding LLC, 4.645%, 06/20/06 (c) (d) 45,000 44,545 Surrey Funding Corp., 4.614%, 04/12/06, LOC: Barclays Bank PLC (c) (d) 19,000 18,973 UBS Finance Delaware LLC, 4.535%, 04/28/06 (c) 14,700 14,651 UBS Finance Delaware LLC, 4.930%, 07/07/06 (c) 44,960 44,371 Whistlejacket Capital Ltd., 4.681%, 04/04/06 (c) (d) 15,748 15,742 Whistlejacket Capital Ltd., 4.584%, 05/26/06 (c) (d) 10,227 10,157 ---------- 1,544,351 ---------- INSURANCE (3.5%) ING America Insurance Holdings, 4.480%, 04/05/06 (c) 48,000 47,976 ING America Insurance Holdings, 4.551%, 04/17/06 (c) 60,000 59,880
- ------------------------------------------------------- Shares or Principal Amount($) Value($) - ------------------------------------------------------- INSURANCE--CONTINUED ING America Insurance Holdings, 4.796%, 05/16/06 (c) 50,000 49,703 Swiss RE Financial Services Corp., 4.259%, 04/03/06 (c) (d) 50,000 49,988 Swiss RE Financial Services Corp., 4.795%, 10/20/06 (c) (d) 35,000 34,091 ---------- 241,638 ---------- Total Commercial Papers (Cost $2,419,130) 2,419,130 ---------- CORPORATE BONDS (45.0%) AGRICULTURE (0.4%) Cargill, Inc., 6.250%, 05/01/06 (d) 29,770 29,829 ---------- AUTO MANUFACTURERS (1.3%) American Honda Finance Corp., 4.700%, 05/12/06 (b) (d) 50,000 50,000 American Honda Finance Corp., 4.510%, 07/10/06 (b) (d) 40,000 40,000 ---------- 90,000 ---------- AUTOMOBILE ABS (1.3%) Honda Auto Receivables Owner Trust, Ser 2005-6, Cl A1, 4.512%, 12/18/06 (b) 14,535 14,535 Nissan Auto Receivables Owner Trust, Ser 2005-C, Cl A1, 3.861%, 09/15/06 8,814 8,813 Nissan Auto Receivables Owner Trust, Ser 2006-A, Cl A1, 4.663%, 02/15/07 34,866 34,867 USAA Auto Owner Trust, Ser 2005-4, Cl A1, 4.400%, 12/15/06 (b) 15,482 15,476 Volkswagen Auto Loan Enhanced Trust, Ser 2005-1, Cl A1, 4.366%, 11/20/06 20,469 20,469 ---------- 94,160 ---------- BANKS (8.3%) Bank of America N.A., 4.810%, 06/07/06 (b) 15,000 15,000
See Notes to Financial Statements. 141 SCHEDULES OF PORTFOLIO INVESTMENTS STI CLASSIC FUNDS March 31, 2006 (Amounts in thousands, except Shares) PRIME QUALITY MONEY MARKET FUND -- CONTINUED
- ------------------------------------------------------- Shares or Principal Amount($) Value($) - ------------------------------------------------------- BANKS--CONTINUED Bank of New York Co., Inc., 4.858%, 04/27/07 (b) (d) 25,000 25,000 Marshall & Ilsley Bank, 5.176%, 12/15/06 50,000 50,123 National Australia Bank, 4.640%, 03/07/07 (b) (d) 75,000 75,000 National City Bank Cleveland, 4.795%, 01/22/07 (b) 50,000 50,000 Northern Rock PLC, 4.661%, 02/05/07 (b) (d) 50,000 50,000 Royal Bank of Canada, 4.600%, 03/30/07 (b) 75,000 75,000 Skandianaviska Enskil Banken, 4.681%, 02/09/07 (b) (d) 50,000 50,000 Wachovia Bank N.A., 4.611%, 12/04/06 (b) 17,000 17,000 Wachovia Corp., 4.985%, 12/08/06 (b) 50,000 50,022 Wells Fargo & Co., 4.683%, 04/03/07 (b) 10,000 10,000 Wells Fargo & Co., 4.739%, 04/13/07 (b) (d) 50,000 50,000 Westpac Banking Corp., 4.721%, 02/16/07 (b) (d) 60,000 60,000 ---------- 577,145 ---------- COMPUTERS (0.4%) IBM Corp., 4.680%, 04/05/07 (b) (d) 25,000 25,000 ---------- DIVERSIFIED FINANCIAL SERVICES (32.8%) Alliance & Leicester PLC, 4.680%, 04/05/07 (b) (d) 30,000 30,000 American Express Credit Corp., 4.761%, 04/05/07 (b) 90,000 90,000 Bear Stearns & Co., Inc., 4.861%, 04/28/07 (b) 125,000 124,999 Beta Finance, Inc., 4.820%, 07/26/06 (b) (d) 50,000 50,000 Beta Finance, Inc., 4.805%, 02/06/07 (b) (d) 75,000 74,994 Beta Finance, Inc., 4.808%, 02/08/07 (b) (d) 30,000 29,997 BMW US Capital LLC, 4.149%, 06/07/06 (b) 50,000 50,030
- ------------------------------------------------------- Shares or Principal Amount($) Value($) - ------------------------------------------------------- DIVERSIFIED FINANCIAL SERVICES--CONTINUED Cheyne Finance LLC, 4.818%, 02/26/07 (b) (d) 50,000 49,999 Cheyne Finance LLC, 4.817%, 03/26/07 (b) (d) 50,000 49,999 CIT Group, Inc., 4.750%, 05/12/06 (b) 41,500 41,500 CIT Group, Inc., 4.800%, 08/18/06 (b) 50,000 50,011 Cullinan Finance Corp., 5.170%, 01/25/07 (d) 50,000 50,000 Dorada Finance, Inc., 4.808%, 01/12/07 (b) (d) 50,000 49,996 Dorada Finance, Inc., 4.808%, 02/14/07 (b) (d) 50,000 49,996 Five Finance, Inc., 4.805%, 02/28/07 (b) (d) 50,000 49,995 General Electric Capital Corp., 4.910%, 05/12/06 (b) 10,115 10,117 General Electric Capital Corp., 4.791%, 04/09/07 (b) 69,000 69,000 Goldman Sachs Group, Inc., 4.810%, 10/27/06 (b) 29,315 29,346 Goldman Sachs Group, Inc., 4.769%, 04/13/07 (b) (d) 100,000 100,000 HSBC Finance Corp., 5.750%, 01/30/07 22,500 22,676 K2 (USA) LLC, 4.810%, 01/11/07 (b) (d) 15,000 14,999 K2 (USA) LLC, 4.910%, 12/04/06 (b) (d) 50,000 50,000 K2 (USA) LLC, 4.820%, 12/08/06 (b) (d) 50,000 49,997 K2 (USA) LLC, 4.810%, 02/08/07 (b) (d) 60,000 59,995 Lehman Brothers, Inc., 6.250%, 05/15/06 25,000 25,075 Liberty Light US Capital, 4.680%, 05/11/06 (b) (d) 50,000 49,999 Liberty Light US Capital, 4.825%, 01/05/07 (b) (d) 25,000 25,000 Liberty Light US Capital, 4.820%, 01/25/07 (b) (d) 75,000 74,994 Liquid Funding Ltd., 4.645%, 08/07/06 (b) (d) 50,000 49,998
See Notes to Financial Statements. 142 SCHEDULES OF PORTFOLIO INVESTMENTS STI CLASSIC FUNDS March 31, 2006 (Amounts in thousands, except Shares) PRIME QUALITY MONEY MARKET FUND -- CONTINUED
- ------------------------------------------------------- Shares or Principal Amount($) Value($) - ------------------------------------------------------- DIVERSIFIED FINANCIAL SERVICES--CONTINUED Liquid Funding Ltd., 4.732%, 11/17/06 (b) (d) 30,000 29,997 Liquid Funding Ltd., 4.844%, 11/28/06 (b) (d) 40,000 40,000 Liquid Funding Ltd., 4.845%, 12/29/06 (b) (d) 15,000 14,998 Liquid Funding Ltd., 4.815%, 03/15/07 (b) (d) 50,000 49,991 Merrill Lynch & Co., Inc., 5.120%, 06/09/06 (b) 17,000 17,008 Merrill Lynch & Co., Inc., 4.721%, 04/04/07 (b) 30,000 30,000 Morgan Stanley, 4.779%, 04/13/07 (b) 75,000 75,000 Morgan Stanley, 4.910%, 04/13/07 (b) 48,500 48,500 National Rural Utilities Cooperative Finance Corp., 6.000%, 05/15/06 37,987 38,085 Sigma Finance, Inc., 4.767%, 05/02/06 (b) (d) 50,000 50,000 Sigma Finance, Inc., 4.945%, 11/06/06 (b) (d) 50,000 50,005 Sigma Finance, Inc., 4.920%, 12/05/06 (b) (d) 50,000 50,000 Sigma Finance, Inc., 4.820%, 01/16/07 (b) (d) 30,000 30,000 Stanfield Victoria LLC, 4.815%, 12/22/06 (b) (d) 50,000 49,991 Stanfield Victoria LLC, 4.830%, 01/22/07 (b) (d) 50,000 49,996 Stanfield Victoria LLC, 4.920%, 01/26/07 Callable 04/18/06 @ 100 (d) 40,000 40,000 Whistlejacket Capital Ltd., 4.820%, 01/12/07 (b) (d) 30,000 29,997 Whistlejacket Capital Ltd., 4.820%, 01/17/07 (b) (d) 75,000 74,991 Whistlejacket Capital Ltd., 4.815%, 02/06/07 (b) (d) 50,000 49,998 ---------- 2,291,269 ---------- INSURANCE (0.5%) Jefferson-Pilot Capital Corp., 4.783%, 02/16/07 (b) (d) 35,000 35,000 ---------- Total Corporate Bonds (Cost $3,142,403) 3,142,403 ----------
- ------------------------------------------------------- Shares or Principal Amount($) Value($) - ------------------------------------------------------- MASTER NOTES (2.7%) BANKS (2.7%) Bank of America Corp., 4.945%, 09/14/06 (b) 190,000 190,000 ---------- Total Master Notes (Cost $190,000) 190,000 ---------- MONEY MARKET FUNDS (1.3%) Federated Prime Value Money Market Fund 90,000,000 90,000 ---------- Total Money Market Funds (Cost $90,000) 90,000 ---------- REPURCHASE AGREEMENTS (0.8%) Bear Stearns & Co., Inc., 4.745%, dated 03/31/06, to be repurchased on 04/03/06, repurchase price $7,125,787 (collateralized by U.S. Government Securities, 5.000%, due 06/15/31; total market value $7,268,725) 7,123 7,123 BNP Paribas, 4.655%, dated 03/31/06, to be repurchased on 04/03/06, repurchase price $5,869,840 (collateralized by U.S. Government Securities, DN, due 01/22/16; total market value $5,985,000) 5,868 5,868 Lehman Brothers, Inc., 4.755%, dated 03/31/06, to be repurchased on 04/03/06, repurchase price $13,304,027 (collateralized by U.S. Government Securities, DN, due 12/01/34; total market value $13,567,534) 13,299 13,299 Merrill Lynch & Co., Inc., 4.725%, dated 03/31/06, to be repurchased on 04/03/06, repurchase price $7,373,147 (collateralized by U.S. Government Securities, 5.500%, due 02/01/35; total market value $7,518,177) 7,370 7,370
See Notes to Financial Statements. 143 SCHEDULES OF PORTFOLIO INVESTMENTS STI CLASSIC FUNDS March 31, 2006 (Amounts in thousands, except Shares) PRIME QUALITY MONEY MARKET FUND -- CONCLUDED
- ------------------------------------------------------- Shares or Principal Amount($) Value($) - ------------------------------------------------------- REPURCHASE AGREEMENTS--CONTINUED Morgan Stanley, 4.705%, dated 03/31/06, to be repurchased on 04/03/06, repurchase price $6,422,030 (collateralized by U.S. Government Securities, 4.500%, due 10/01/18; total market value $7,015,912) 6,419 6,419 UBS Warburg LLC, 4.755%, dated 03/31/06, to be repurchased on 04/03/06, repurchase price $14,505,381 (collateralized by U.S. Government Securities, 2.318%, due 10/26/23; total market value $14,790,213) 14,500 14,500 ---------- Total Repurchase Agreements (Cost $54,579) 54,579 ---------- Total Investments (Cost $7,025,086) (a) -- 100.5% 7,025,086 Liabilities in excess of other assets -- (0.5)% (32,653) ---------- Net Assets -- 100.0% $6,992,433 ==========
- --------------- (a)Aggregate cost for federal income tax and financial reporting purposes is the same. (b)Variable rate security. Rate presented represents rate in effect at March 31, 2006. Maturity date represents actual maturity date. (c)Rate represents the effective yield at purchase. (d)Rule 144A, Section 4(2) or other security which is restricted as to resale to institutional investors. The Fund's advisor has deemed this security to be liquid based upon procedures approved by the Board of Trustees. Cl -- Class DN -- Discount Note LLC -- Limited Liability Company PLC -- Public Limited Company Ser -- Series See Notes to Financial Statements. 144 SCHEDULES OF PORTFOLIO INVESTMENTS STI CLASSIC FUNDS March 31, 2006 (Amounts in thousands, except Shares) TAX-EXEMPT MONEY MARKET FUND
- ------------------------------------------------------- Shares or Principal Amount($) Value($) - ------------------------------------------------------- MUNICIPAL BONDS (97.0%) ALABAMA (1.4%) Birmingham-Carraway Special Care Facilities Financing Authority, Carraway Methodist Health Project, Ser A, RB, 3.210%, 08/15/28, LOC: AmSouth Bank (b) 2,900 2,900 Cherokee Industrial Development Board, The BOC Group Project, RB, 3.180%, 04/01/08, LOC: Wachovia Bank of Georgia (b) 3,500 3,500 Daphne-Villa Mercy Special Care Facilities Financing Authority, Mercy Medical Project, RB, 3.190%, 12/01/27, LOC: AmSouth Bank (b) 12,500 12,500 Marion Educational Building Authority, Judson College Project, RB, 3.230%, 01/01/33, LOC: SouthTrust Bank N.A. (b) 6,620 6,620 ---------- 25,520 ---------- ALASKA (2.4%) Valdez Marine Terminal, Exxon Pipeline Co. Project, RB, 3.120%, 10/01/25 (b) 25,000 25,000 Valdez Marine Terminal, ExxonMobil Project, RB, 3.120%, 12/01/29 (b) 20,000 20,000 ---------- 45,000 ---------- CALIFORNIA (5.1%) California Housing Finance Agency, Home Mortgage, Ser U, RB, AMT, 3.200%, 02/01/31, FSA (b) 36,300 36,300 California Housing Finance Agency, Home Mortgage, Ser U, RB, AMT, 3.200%, 02/01/32, FSA (b) 8,900 8,900
- ------------------------------------------------------- Shares or Principal Amount($) Value($) - ------------------------------------------------------- CALIFORNIA--CONTINUED Los Angeles Regional Airports Improvement Corp., Sublease L.A. International, RB, 3.150%, 12/01/25, LOC: Societe Generale (b) 25,000 25,000 Los Angeles Unified School District, Ser PT-3191, GO, 3.210%, 07/01/25, Callable 07/01/15 @ 100, FGIC (b) 8,000 8,000 San Francisco City & County Housing Authority, Valencia Gardens Housing, RB, AMT, 3.200%, 09/01/49, LOC: Citibank N.A. (b) 15,000 15,000 ---------- 93,200 ---------- COLORADO (0.3%) Colorado Housing & Finance Authority, St. Moritz Project, Ser H, RB, 3.170%, 10/15/16, FNMA (b) 5,415 5,415 ---------- DISTRICT OF COLUMBIA (1.1%) District of Columbia, Planned Parenthood Project, RB, 3.180%, 12/01/29, LOC: Bank of America N.A. (b) 6,245 6,245 District of Columbia, The Phillips Collection Issue, RB, 3.180%, 08/01/33, LOC: Bank of America N.A. (b) 5,400 5,400 District of Columbia, Thurgood Marshall Center Trust, RB, 3.200%, 11/01/27, LOC: Branch Banking & Trust Co. (b) 3,345 3,345 Metropolitan Washington Airports, Ser 05-A, RB, 3.350%, 06/14/06, LOC: Bank of America (b) 6,000 6,000 ---------- 20,990 ----------
See Notes to Financial Statements. 145 SCHEDULES OF PORTFOLIO INVESTMENTS STI CLASSIC FUNDS March 31, 2006 (Amounts in thousands, except Shares) TAX-EXEMPT MONEY MARKET FUND -- CONTINUED
- ------------------------------------------------------- Shares or Principal Amount($) Value($) - ------------------------------------------------------- FLORIDA (6.1%) De Soto County Industrial Development, Tremron Project, RB, 3.300%, 11/01/15, LOC: Branch Banking & Trust Co. (b) 3,800 3,800 Florida Department of Environmental Protection, Preservation, Ser PT-3335, RB, 3.210%, 07/01/24, Callable 07/01/15 @ 101, MBIA (b) 20,000 20,000 Florida Housing Finance Agency, Bainbridge Project, Ser M, RB, AMT, 3.200%, 12/01/25, FNMA (b) 6,170 6,170 Florida Housing Finance Corp., Brentwood Club Apartments Project, Ser A-1, RB, AMT, 3.190%, 01/15/35, FNMA (b) 10,400 10,400 Florida Housing Finance Corp., Ser MT-169, RB, 3.250%, 10/01/32, FHLMC 12,750 12,750 Florida Housing Finance Corp., St. Andrews Pointe Apartments Project, Ser E-1, RB, AMT, 3.180%, 06/15/36, FNMA (b) 8,615 8,615 Florida Housing Finance Corp., Stone Harbor Apartments Project, Ser K, RB, AMT, 3.200%, 07/15/36, LOC: AmSouth Bank (b) 5,560 5,560 Hillsborough County Industrial Development Authority, Independent Day School Project, RB, 3.230%, 09/01/26, LOC: Bank of America N.A. (b) 2,300 2,300
- ------------------------------------------------------- Shares or Principal Amount($) Value($) - ------------------------------------------------------- FLORIDA--CONTINUED Manatee County St., Stephens Upper School Project, RB, 3.230%, 11/01/25, LOC: Bank of America N.A. (b) 3,200 3,200 Miami-Dade County Industrial Development Authority, Gulliver Schools Project, RB, 3.230%, 09/01/29, LOC: Bank of America N.A. (b) 7,050 7,050 Orange County Housing Finance Authority, Charleston Club Apartments Project, Ser A, RB, AMT, 3.200%, 07/15/34, FNMA (b) 7,000 7,000 Santa Rosa County Health Facilities Authority, Baptist Hospital, Inc. Project, RB, 3.180%, 10/01/21, LOC: Bank of America N.A. (b) 7,700 7,700 Sarasota County Health Facility Authority, Bay Village Project, RB, 3.230%, 12/01/23, LOC: Bank of America N.A. (b) 4,100 4,100 Tampa Bay Water Utility System, Regional Water Supply Authority, RB, AMT, 3.230%, 10/01/31, LOC: Bank of America N.A. (b) 9,100 9,100 University of North Florida Foundation, Inc., Parking Systems Project, RB, 3.230%, 05/01/28, LOC: First Union National Bank (b) 5,400 5,400 ---------- 113,145 ----------
See Notes to Financial Statements. 146 SCHEDULES OF PORTFOLIO INVESTMENTS STI CLASSIC FUNDS March 31, 2006 (Amounts in thousands, except Shares) TAX-EXEMPT MONEY MARKET FUND -- CONTINUED
- ------------------------------------------------------- Shares or Principal Amount($) Value($) - ------------------------------------------------------- GEORGIA (1.5%) Atlanta Airport, Ser 313, RB, AMT, 3.240%, 01/01/18, Callable 01/01/10 @ 101, FGIC (b) 3,335 3,335 Bulloch County Development Authority, Ser PT-2594, RB, 3.210%, 08/01/26, Callable 08/01/15 @ 100, XLCA (b) 4,090 4,090 Cobb County Development Authority, Kennesaw State University Project, RB, 3.180%, 11/01/18, AMBAC (b) 4,820 4,820 Houston County Development Authority, Clean Control Corp. Project, RB, AMT, 3.300%, 06/01/20, LOC: Branch Banking & Trust Co. (b) 2,625 2,625 Metropolitan Atlanta Rapid Transit Authority, Ser SG-57, RB, 3.210%, 07/01/20, AMBAC (b) 5,000 5,000 Savannah Economic Development Authority, Exempt Facilities -- Consolidated Utilities, Inc. Project, RB, AMT, 3.300%, 12/01/19, LOC: Branch Banking & Trust Co. (b) 2,090 2,090 Savannah Economic Development Authority, Kennickell Printing Co. Project, RB, AMT, 3.300%, 09/01/11, LOC: Branch Banking & Trust Co. (b) 1,410 1,410 Toombs County Hospital Authority, Meadows Regional Medical Center Project, RB, 3.200%, 12/01/17, LOC: Branch Banking & Trust Co. (b) 4,500 4,500 ---------- 27,870 ----------
- ------------------------------------------------------- Shares or Principal Amount($) Value($) - ------------------------------------------------------- HAWAII (0.3%) Hawaii State Airport System, Ser PA-1110, RB, AMT, 3.000%, 07/01/09, FGIC (b) 4,995 4,995 ---------- ILLINOIS (11.2%) Bloomington-Normal Airport Authority, GO, 3.600%, 01/01/12, LOC: Bank One N.A. (b) 600 600 Chicago Airport Special Facilities, Centerpoint O'Hare LLC Project, RB, AMT, 3.260%, 09/01/32, LOC: Bank One N.A. (b) 2,800 2,800 Chicago Waterworks, Merlots Project, Ser A 02, GO, 3.370%, 11/01/30 (b) 14,920 14,920 Chicago, Merlots Project, Ser WWW, GO, 3.210%, 01/01/22, AMBAC (b) 11,000 11,000 Illinois Educational Facilities Authority, Chicago Children's Museum Project, RB, 3.280%, 02/01/28, LOC: Bank One N.A. (b) 1,600 1,600 Illinois Educational Facilities Authority, Museum of Science & Industry Project, RB, 3.280%, 11/01/15, LOC: Northern Trust Co. (b) 4,200 4,200 Illinois Finance Authority, Alexian Brothers Health Project, RB, 3.180%, 04/01/35, LOC: Bank One N.A. (b) 31,000 31,000 Illinois Finance Authority, Resurrection Health, Ser B, RB, 3.180%, 05/15/35, LOC: JPMorgan Chase & Co. (b) 42,700 42,700
See Notes to Financial Statements. 147 SCHEDULES OF PORTFOLIO INVESTMENTS STI CLASSIC FUNDS March 31, 2006 (Amounts in thousands, except Shares) TAX-EXEMPT MONEY MARKET FUND -- CONTINUED
- ------------------------------------------------------- Shares or Principal Amount($) Value($) - ------------------------------------------------------- ILLINOIS--CONTINUED Illinois Finance Authority, Resurrection Health, Ser C, RB, 3.190%, 05/15/35, LOC: Lasalle Bank N.A. (b) 70,100 70,100 Illinois Health Facilities Authority, Advocate Health Care Project, Ser B, RB, 3.180%, 08/15/22 (b) 2,000 2,000 Illinois Health Facilities Authority, Proctor Hospital Project, RB, 3.280%, 01/01/12, LOC: Bank One N.A. (b) 3,000 3,000 Illinois State, Merlots Project, Ser B04, GO, 3.210%, 12/01/24, Callable 01/01/12 @100, FSA (b) 7,225 7,225 Lockport Industrial Development, Panduit Corp. Project, RB, AMT, 3.270%, 04/01/25, LOC: Fifth Third Bank (b) 2,000 2,000 Macon County, Millikin University Project, RB, 3.200%, 10/01/28, AMBAC (b) 5,050 5,050 Naperville, Heritage YMCA Group, Inc. Project, RB, 3.170%, 12/01/29, LOC: Fifth Third Bank (b) 7,000 7,000 Savanna Industrial Development, Metform Corp. Project, Ser A, RB, AMT, 3.290%, 05/01/14, LOC: Bank One N.A. (b) 500 500 Savanna Industrial Development, Metform Corp. Project, Ser B, RB, AMT, 3.500%, 06/01/09, LOC: Bank One N.A. (b) 1,400 1,400
- ------------------------------------------------------- Shares or Principal Amount($) Value($) - ------------------------------------------------------- ILLINOIS--CONTINUED Wheeling Industrial Development, Circuit Service, Inc. Project, RB, AMT, 3.500%, 04/01/18, LOC: Bank One Illinois N.A. (b) 1,400 1,400 ---------- 208,495 ---------- INDIANA (3.0%) Elkhart County Economic Development, Holly Park, Inc. Project, RB, AMT, 3.500%, 02/01/10, LOC: Bank One Indiana N.A. (b) 1,100 1,100 Fort Wayne Economic Development, Notre Dame Technical Project, RB, AMT, 3.290%, 07/01/09, LOC: Bank One N.A. (b) 1,000 1,000 Indiana Bond Bank, RB, 3.430%, 02/01/22, Callable 02/01/15 @ 100, FGIC (b) 5,150 5,150 Indiana Development Finance Authority, Christel House Project, RB, 3.170%, 02/01/23, LOC: Fifth Third Bank (b) 6,255 6,255 Indiana Development Finance Authority, Culver Educational Foundation Project, RB, 3.220%, 01/01/32, LOC: Northern Trust Co. (b) 12,700 12,700 Indiana Development Finance Authority, Indiana Historical Society Project, RB, 3.220%, 08/01/31, LOC: Bank One Indiana N.A. (b) 1,200 1,200 Indiana Health Facility Financing Authority, Clarian Health Partners, Inc. Project, Ser B, RB, 3.200%, 02/15/26, LOC: JPMorgan Chase & Co. (b) 2,000 2,000
See Notes to Financial Statements. 148 SCHEDULES OF PORTFOLIO INVESTMENTS STI CLASSIC FUNDS March 31, 2006 (Amounts in thousands, except Shares) TAX-EXEMPT MONEY MARKET FUND -- CONTINUED
- ------------------------------------------------------- Shares or Principal Amount($) Value($) - ------------------------------------------------------- INDIANA--CONTINUED La Porte County Economic Development, Pedcor Investments-Woodland Project, RB, AMT, 3.290%, 10/01/29, FHLB (b) 1,200 1,200 Marion Economic Development, Wesleyan University Project, RB, 3.180%, 06/01/36, LOC: Bank of America N.A. (b) 10,000 10,000 Marshall County Economic Development, Culver Educational Foundation Project, RB, 3.220%, 01/01/35, LOC: Bank One N.A. (b) 8,300 8,300 MSD Warren Township Vision 2005 School Building Corp., Merlots Project, Ser A52, RB, 3.210%, 07/15/20, FGIC (b) 6,595 6,595 ---------- 55,500 ---------- IOWA (0.6%) City of Des Moines, Airport Passenger Facility, Ser A, RB, 3.150%, 04/05/06, LOC: Bank of America 5,000 5,000 Iowa Higher Education Loan Authority, Private College-Graceland Project, RB, 3.230%, 02/01/33, LOC: Bank of America N.A. (b) 3,600 3,600 Sac County Industrial, Evapco, Inc. Project, RB, AMT, 3.280%, 07/01/16, LOC: Bank of America N.A. (b) 2,400 2,400 ---------- 11,000 ----------
- ------------------------------------------------------- Shares or Principal Amount($) Value($) - ------------------------------------------------------- KENTUCKY (0.9%) Campbell County Industrial Building, Hospital Imaging Co., Inc. Project, RB, 3.190%, 04/01/20, LOC: Fifth Third Bank (b) 2,705 2,705 Kentucky State Turnpike Authority, Economic Development, Ser PT-2702, RB, 3.210%, 07/01/22, Callable 07/01/15 @ 100, AMBAC (b) 14,060 14,060 ---------- 16,765 ---------- MARYLAND (1.4%) Maryland Community Development Administration, Department of Housing & Community Development, People's Resource Center, Ser C, RB, AMT, 3.210%, 09/01/35, LOC: Lloyds TSB Bank PLC (b) 15,040 15,040 Maryland State Economic Development Corp., YMCA of Central Maryland, Inc. Project, RB, 3.200%, 04/01/28, LOC: Branch Banking & Trust Co. (b) 3,950 3,950 Maryland State, Ser PA-816, GO, 3.190%, 03/01/12, LOC: Merrill Lynch Capital Services, Inc. (b) 5,995 5,995 ---------- 24,985 ---------- MASSACHUSETTS (6.3%) Massachusetts Bay Transportation Authority, Sales Tax, Ser PT-2581, RB, 3.190%, 07/01/26, LOC: Dexia Credit Local (b) 29,960 29,960
See Notes to Financial Statements. 149 SCHEDULES OF PORTFOLIO INVESTMENTS STI CLASSIC FUNDS March 31, 2006 (Amounts in thousands, except Shares) TAX-EXEMPT MONEY MARKET FUND -- CONTINUED
- ------------------------------------------------------- Shares or Principal Amount($) Value($) - ------------------------------------------------------- MASSACHUSETTS--CONTINUED Massachusetts Development Finance Agency, Boston University, Ser R-4, RB, 3.140%, 10/01/42, XLCA (b) 15,000 15,000 Massachusetts Housing Finance Agency, Ser PA-1333, RB, AMT, 3.200%, 07/01/25, Callable 07/01/13 @ 100, FSA (b) 37,165 37,165 Massachusetts State Special Obligations, Dedicated Tax, Ser PT-3050, RB, 3.190%, 01/01/30, FGIC (b) 24,960 24,960 Massachusetts State, Ser PT-1390, GO, 3.190%, 03/01/10, FSA (b) 9,905 9,905 ---------- 116,990 ---------- MICHIGAN (0.6%) ABN Amro Munitops Certificate Trust, Ser 2004-2, RB, AMT, 3.270%, 12/20/11, GNMA (b) 9,780 9,780 Oakland County Economic Development Corp., Moody Family Ltd. Project, RB, AMT, 3.380%, 09/01/12, LOC: Bank One Michigan (b) 500 500 ---------- 10,280 ---------- MISSOURI (0.2%) Carthage Industrial Development Authority, Schreiber Project, RB, AMT, 3.500%, 11/01/10, LOC: First National Bank (b) 3,100 3,100
- ------------------------------------------------------- Shares or Principal Amount($) Value($) - ------------------------------------------------------- MISSOURI--CONTINUED Missouri State Environmental Improvement & Energy Resource Authority, Utilicorp United, Inc. Project, RB, AMT, 3.500%, 05/01/28, LOC: Toronto Dominion Bank (b) 700 700 ---------- 3,800 ---------- MONTANA (0.5%) Missoula County Economic Development, Dinny Stranahan Research Institute Project, RB, 3.180%, 06/01/20, LOC: Northern Trust Co. (b) 8,500 8,500 ---------- NEVADA (0.6%) Nevada State, Ser 344, GO, 3.230%, 05/15/28, Callable 05/15/08 @ 100, FGIC (b) 5,495 5,495 Nevada State, Ser SG-114, 3.210%, 03/01/27 (b) 5,000 5,000 ---------- 10,495 ---------- NEW JERSEY (7.0%) New Jersey Economic Development Authority, Ser 1533, RB, 3.200%, 06/15/10, MBIA (b) 16,155 16,155 New Jersey Economic Development Authority, Ser PT-1532, RB, 3.200%, 12/15/14, MBIA (b) 10,590 10,590 New Jersey Economic Development Authority, Ser PT-2847, RB, 3.200%, 09/01/22, MBIA (b) 39,825 39,825 New Jersey State Turnpike Authority, Ser PT-2843, RB, 3.200%, 01/01/30, FSA (b) 30,605 30,605 New Jersey State, Ser PT-2742, GO, 3.200%, 07/15/19, AMBAC (b) 12,535 12,535
See Notes to Financial Statements. 150 SCHEDULES OF PORTFOLIO INVESTMENTS STI CLASSIC FUNDS March 31, 2006 (Amounts in thousands, except Shares) TAX-EXEMPT MONEY MARKET FUND -- CONTINUED
- ------------------------------------------------------- Shares or Principal Amount($) Value($) - ------------------------------------------------------- NEW JERSEY--CONTINUED New Jersey Transportation Trust Fund Authority, Ser PA-802, RB, 3.200%, 12/15/09, FSA (b) 10,000 10,000 New Jersey Transportation Trust Fund Authority, Ser PT-2489, RB, 3.200%, 12/15/17, Callable 12/15/15 @ 100, AMBAC/ FGIC (b) 9,380 9,380 ---------- 129,090 ---------- NEW YORK (16.2%) Metropolitan Transportation Authority, Ser G, RB, 3.120%, 11/01/26, LOC: BNP Paribas (b) 50,000 50,000 Metropolitan Transportation Authority, Ser-1040, RB, 3.200%, 11/15/20, Callable 11/15/12 @ 100, FGIC (b) 30,770 30,770 New York City Housing Development Corp., Morris Avenue Apartments, Ser A, RB, AMT, 3.210%, 10/15/38, LOC: HSBC Bank USA N.A. (b) 21,000 21,000 New York City Housing Development Corp., Ser PT-2753, RB, 3.200%, 07/01/25, Callable 07/01/15 @ 100, FGIC (b) 2,250 2,250 New York City Housing Development Corp., State Renaissance LLC, Ser A, RB, AMT, 3.190%, 06/01/37, FHLMC (b) 25,000 25,000 New York City Municipal Water Finance Authority, Ser SGB-27, RB, 3.200%, 06/15/24, FSA (b) 9,000 9,000
- ------------------------------------------------------- Shares or Principal Amount($) Value($) - ------------------------------------------------------- NEW YORK--CONTINUED New York City Municipal Water Finance Authority, Water & Sewer System, Ser PA-1327, RB, 3.200%, 06/15/38, Callable 06/15/13 @ 100, LOC: Merrill Lynch Capital Services, Inc. (b) 25,000 25,000 New York City Municipal Water Finance Authority, Water & Sewer System, Ser PA-523, RB, 3.200%, 06/15/30, Callable 06/15/07 @ 101, FGIC (b) 32,740 32,740 New York City Transitional Finance Authority, Ser 3, Sub-Ser 3B, RB, 3.040%, 11/01/22, LOC: Citigroup Global Markets (b) 20,000 20,000 New York City Transitional Finance Authority, Ser L11, RB, 3.190%, 11/01/28 (b) 35,000 35,000 New York City, Ser PT-2712, GO, 3.200%, 08/01/25, Callable 08/01/15 @ 100, FGIC (b) 13,955 13,955 New York State Dormitory Authority, Secondary Issues, Ser PT-2645, RB, 3.200%, 03/15/17, Callable 03/15/15 @ 100, AMBAC (b) 9,940 9,940 New York State Dormitory Authority, Ser PT-746, RB, 3.400%, 10/01/17, Callable 12/14/06 @ 100, MBIA (b) 1,495 1,495 New York State Thruway Authority, Ser SG-119, RB, 3.280%, 01/01/27, LOC: Societe Generale (b) 7,900 7,900 Sales Tax Asset Receivables Corp., Ser PT-2450, RB, 3.200%, 10/15/25, Callable 10/15/14 @ 100, MBIA (b) 14,960 14,960
See Notes to Financial Statements. 151 SCHEDULES OF PORTFOLIO INVESTMENTS STI CLASSIC FUNDS March 31, 2006 (Amounts in thousands, except Shares) TAX-EXEMPT MONEY MARKET FUND -- CONTINUED
- ------------------------------------------------------- Shares or Principal Amount($) Value($) - ------------------------------------------------------- NEW YORK--CONTINUED Southeast Industrial Development Agency, Unilock New York, Inc. Project, RB, AMT, 3.500%, 12/01/12, LOC: Bank One N.A. (b) 1,800 1,800 ---------- 300,810 ---------- NORTH CAROLINA (3.7%) Charlotte Airport, Charlotte-Douglas International, Ser A, RB, AMT, 3.220%, 07/01/17, MBIA (b) 3,500 3,500 Charlotte Water & Sewer, RB, 3.350%, 08/01/06 29,740 29,740 Cleveland County Family YMCA, Inc. Recreational Facilities, RB, 3.200%, 08/01/18, LOC: Branch Banking & Trust (b) 2,300 2,300 Forsyth County, Communications System Project, COP, 3.200%, 10/01/12, LOC: Wachovia Bank N.A. (b) 9,070 9,070 Guilford County Industrial Facilities & Pollution Control Financing, YMCA of Greensboro, Inc. Project, RB, 3.200%, 02/01/23, LOC: Branch Banking & Trust Co. (b) 4,600 4,600 North Carolina Medical Care Commission Health Care Facilities, Friends Homes Project, RB, 3.200%, 09/01/33, LOC: Bank of America N.A. (b) 6,855 6,855 North Carolina Medical Care Commission Health Care Facilities, Lutheran Services for the Aging Project, RB, 3.180%, 03/01/28, LOC: Branch Banking & Trust Co. (b) 7,935 7,935
- ------------------------------------------------------- Shares or Principal Amount($) Value($) - ------------------------------------------------------- NORTH CAROLINA--CONTINUED North Carolina Medical Care Commission, Westcare Health Systems Obligation, Ser A, RB, 3.200%, 09/01/22, LOC: Branch Banking & Trust Co. (b) 4,400 4,400 ---------- 68,400 ---------- OHIO (0.6%) Ohio State Higher Educational Facility Commission, Pooled Financing Project, RB, 3.280%, 09/01/18, LOC: Fifth Third Bank (b) 3,385 3,385 Rickenbacker Port Authority, YMCA of Central Ohio Project, RB, 3.280%, 05/01/22, LOC: Fifth Third Bank (b) 7,300 7,300 ---------- 10,685 ---------- OTHER (9.0%) Eagle Tax-Exempt Trust, Ser 20001001, Cl A, GO, 3.210%, 07/01/15, Callable 07/01/10 @ 100, LOC: Citibank N.A. (b) 7,025 7,025 Eagle Tax-Exempt Trust, Ser 991301, GO, 3.210%, 06/01/25, FSA (b) (c) 9,900 9,900 Municipal Securities Pool Trust Receipts, Ser SG P-18, RB, 3.300%, 01/01/35, LOC: Societe Generale (b) (c) 1,600 1,600 Municipal Securities Pool Trust Receipts, Ser SG-PG 17, 3.300%, 06/01/34 (b) (c) 5,905 5,905 Munimae TE Bond Subsidiary LLC, Ser PT-3264, RB, 3.260%, 11/15/25, LOC: Merrill Lynch Capital Services, Inc. (b) 10,000 10,000
See Notes to Financial Statements. 152 SCHEDULES OF PORTFOLIO INVESTMENTS STI CLASSIC FUNDS March 31, 2006 (Amounts in thousands, except Shares) TAX-EXEMPT MONEY MARKET FUND -- CONTINUED
- ------------------------------------------------------- Shares or Principal Amount($) Value($) - ------------------------------------------------------- OTHER--CONTINUED Munimae Trust, Ser PT-616, RB, AMT, 3.260%, 12/17/06, FHLMC (b) (c) 5,000 5,000 Puttable Floating Rate Option, Tax-Exempt Receipts, Ser PPT-1001, Cl D, 3.100%, 03/01/40 (c) 9,120 9,120 Puttable Floating Rate Option, Tax-Exempt Receipts, Ser PPT-1001, Cl I, 3.270%, 03/01/40 (b) (c) 9,120 9,120 Puttable Floating Rate Option, Tax-Exempt Receipts, Ser PPT-1003, Cl A, 3.400%, 01/01/32 (b) (c) 19,220 19,220 Puttable Floating Rate Option, Tax-Exempt Receipts, Ser PPT-1003, Cl B, 3.270%, 01/01/32 (b) (c) 55,735 55,735 Puttable Floating Rate Option, Tax-Exempt Receipts, Ser PPT-34, 3.860%, 12/01/29 (b) (c) 30,000 30,000 Puttable Floating Rate Option, Tax-Exempt Receipts, Ser PPT-36, Cl A, 3.300%, 01/01/27 (b) (c) 2,535 2,535 ---------- 165,160 ---------- PENNSYLVANIA (2.1%) Allegheny County Hospital Development Authority, Ser PT-762, RB, 2.850%, 11/01/23, MBIA (b) 15,900 15,900 Cambria County Industrial Development Authority, Cambria Cogen Co. Project, Ser A-1, RB, AMT, 3.300%, 12/01/28, LOC: Bayerische Hypo-Und Vereinsbank (b) 7,125 7,125 Delaware River Port Authority, Ser PA 965, RB, 3.200%, 01/01/10, FSA (b) 5,920 5,920
- ------------------------------------------------------- Shares or Principal Amount($) Value($) - ------------------------------------------------------- PENNSYLVANIA--CONTINUED Philadelphia Authority for Industrial Development, Chemical Heritage Foundation Project, RB, 3.180%, 07/01/27, LOC: Wachovia Bank N.A. (b) 8,920 8,920 ---------- 37,865 ---------- SOUTH CAROLINA (2.6%) South Carolina Educational Facilities Authority, Charleston Southern University Project, RB, 3.180%, 04/01/28, LOC: Bank of America N.A. (b) 5,450 5,450 South Carolina Educational Facilities Authority, Newberry College Project, RB, 3.200%, 09/01/35, LOC: Branch Banking & Trust Co. (b) 8,000 8,000 South Carolina Jobs- Economic Development Authority, Anderson Area YMCA, Inc. Project, RB, 3.230%, 11/01/24, LOC: Bank of America N.A. (b) 6,900 6,900 South Carolina Jobs- Economic Development Authority, DCS Diversified Coating Systems, Inc. Project, RB, AMT, 3.300%, 04/01/17, LOC: Branch Banking & Trust Co. (b) 2,195 2,195 South Carolina Jobs- Economic Development Authority, Sargent Metal Fabricators, Inc. Project, RB, AMT, 3.300%, 11/01/22, LOC: Branch Banking & Trust Co. (b) 2,410 2,410
See Notes to Financial Statements. 153 SCHEDULES OF PORTFOLIO INVESTMENTS STI CLASSIC FUNDS March 31, 2006 (Amounts in thousands, except Shares) TAX-EXEMPT MONEY MARKET FUND -- CONTINUED
- ------------------------------------------------------- Shares or Principal Amount($) Value($) - ------------------------------------------------------- SOUTH CAROLINA--CONTINUED South Carolina Jobs- Economic Development Authority, USC Development Foundation Project, RB, 3.200%, 12/01/10, LOC: Branch Banking & Trust Co. (b) 6,000 6,000 South Carolina Jobs- Economic Development Authority, YMCA of Beaufort County Project, RB, 3.200%, 12/01/24, LOC: Branch Banking & Trust Co. (b) 3,310 3,310 South Carolina State Housing Finance & Development Authority, Ser PT-1272, RB, 3.260%, 12/15/30, LOC: Merrill Lynch Capital Services, Inc. (b) 10,000 10,000 University of South Carolina Development Foundation, RB, 3.200%, 12/01/10, LOC: Branch Banking & Trust Co. (b) 4,000 4,000 ---------- 48,265 ---------- TENNESSEE (0.4%) Covington Industrial Development Board, Charms Co. Project, RB, AMT, 3.290%, 06/01/27, LOC: Bank of America N.A. (b) 3,000 3,000 Knox County Industrial Development Board, Educational Services of America Project, RB, 3.200%, 12/01/22, LOC: Branch Banking & Trust Co. (b) 3,315 3,315
- ------------------------------------------------------- Shares or Principal Amount($) Value($) - ------------------------------------------------------- TENNESSEE--CONTINUED Metropolitan Government, Nashville & Davidson County Health & Educational Facilities Board, Nashville Christian School Project, RB, 3.230%, 09/01/23, LOC: SouthTrust Bank N.A. (b) 1,560 1,560 ---------- 7,875 ---------- TEXAS (2.9%) Brazos County Health Facility Development Corp., Ser MT-181, RB, 3.240%, 01/01/19, LOC: Merrill Lynch Capital Services, Inc. (b) 30,630 30,630 Harris County Industrial Development Corp., Pollution Control, RB, 3.120%, 03/01/24 (b) 9,800 9,800 Houston Water & Sewer System, Ser SG-78, RB, 3.210%, 12/01/25 (b) 8,835 8,835 Lower Colorado River Authority, Merlots Project, Ser ZZZ, RB, 3.210%, 01/01/28, FSA (b) 3,500 3,500 ---------- 52,765 ---------- VIRGINIA (6.7%) ABN Amro Munitops Certificate Trust, Ser 2003-33, RB, 3.190%, 04/01/11, MBIA (b) 5,370 5,370 Charlottesville Industrial Development Authority, Seminole Project, Ser A, RB, 3.120%, 12/01/13, Callable 12/01/06 @ 100, LOC: Branch Banking & Trust Co. (b) 3,450 3,450
See Notes to Financial Statements. 154 SCHEDULES OF PORTFOLIO INVESTMENTS STI CLASSIC FUNDS March 31, 2006 (Amounts in thousands, except Shares) TAX-EXEMPT MONEY MARKET FUND -- CONTINUED
- ------------------------------------------------------- Shares or Principal Amount($) Value($) - ------------------------------------------------------- VIRGINIA--CONTINUED Clarke County Industrial Development Authority, Powhatan School District Project, RB, 3.200%, 09/01/22, LOC: Branch Banking & Trust Co. (b) 1,525 1,525 Danville-Pittsylvania Regional Industrial Facility Authority, Institute of Advanced Research Project, RB, 3.200%, 08/01/12, LOC: Branch Banking & Trust Co. (b) 1,965 1,965 Fairfax County Economic Development Authority, Public Broadcasting Services Project, RB, 3.160%, 07/01/40, LOC: Bank of America N.A. (b) 7,500 7,500 Fairfax County Industrial Development Authority, Inova Health Systems Project, RB, 3.120%, 01/01/30 (b) 33,000 33,000 Front Royal & Warren County Industrial Development Authority, Warren Memorial Hospital Project, RB, 3.200%, 05/01/23, LOC: Branch Banking & Trust Co. (b) 2,895 2,895 Lexington Industrial Development Authority, V.M.I. Development Board, Inc. Project, RB, 3.180%, 12/01/34, LOC: Wachovia Bank N.A. (b) 10,000 10,000
- ------------------------------------------------------- Shares or Principal Amount($) Value($) - ------------------------------------------------------- VIRGINIA--CONTINUED Louisa County Industrial Development Authority, University of Virginia Health Services Foundation Project, RB, 3.190%, 10/01/30, LOC: First Union National Bank (b) 3,000 3,000 Norfolk Redevelopment & Housing Authority, Student Housing Project, RB, 3.180%, 07/01/34, LOC: Bank of America N.A. (b) 7,000 7,000 Shenandoah County Industrial Development Authority, Shenandoah Memorial Hospital Project, RB, 3.200%, 11/01/14, LOC: Branch Banking & Trust Co. (b) 2,915 2,915 University of Virginia, Merlots Project, Ser B 31, RB, 3.210%, 06/01/27, Callable 06/01/13 @100, LOC: Wachovia Bank N.A. (b) 4,720 4,720 Virginia Beach Development Authority, Production Road Ventures Project, RB, AMT, 3.280%, 09/01/16, LOC: Wachovia Bank N.A. (b) 1,000 1,000 Virginia Biotechnology Research Park Authority, United Network of Organ Sharing Project, RB, 3.180%, 04/01/27, LOC: Wachovia Bank N.A. (b) 6,730 6,730 Virginia College Building Authority, Shenandoah University Project, RB, 3.190%, 05/01/32, LOC: Branch Banking & Trust Co. (b) 3,000 3,000
See Notes to Financial Statements. 155 SCHEDULES OF PORTFOLIO INVESTMENTS STI CLASSIC FUNDS March 31, 2006 (Amounts in thousands, except Shares) TAX-EXEMPT MONEY MARKET FUND -- CONTINUED
- ------------------------------------------------------- Shares or Principal Amount($) Value($) - ------------------------------------------------------- VIRGINIA--CONTINUED Virginia Housing Development Authority, Commonwealth Mortgage, Ser PA-1310R, RB, 3.190%, 07/01/36, Callable 07/01/11@ 100, MBIA (b) 19,905 19,905 Virginia Resources Authority, Clean Water, Ser PA-790, RB, 3.190%, 10/01/16, Callable 10/01/10 @ 100, LOC: Merrill Lynch Capital Services, Inc. (b) (c) 2,000 2,000 Virginia State Public School Authority, Ser PT-1619, RB, 3.190%, 08/01/08, LOC: Merrill Lynch Capital Services, Inc. (b) (c) 2,470 2,470 Williamsburg Industrial Development Authority, Colonial Williamsburg Project, RB, 3.180%, 10/01/35, LOC: First Union National Bank (b) 4,220 4,220 ---------- 122,665 ---------- WASHINGTON (1.7%) King County Housing Authority, Ser PT-2185, RB, 3.190%, 09/20/42 (b) 5,485 5,485 King County Sewer, Ser PA-1071, RB, 3.210%, 01/01/10, FSA (b) 7,495 7,495 Seattle Certificates, Ser 348, GO, 3.210%, 12/15/28, Callable 12/15/08 @ 100, LOC: Morgan Stanley Dean Witter (b) 4,495 4,495 Washington Public Power Supply System, Nuclear Power Project No. 1, Ser 1A-1, RB, 3.170%, 07/01/17, LOC: Bank of America N.A. (b) 3,540 3,540
- ------------------------------------------------------- Shares or Principal Amount($) Value($) - ------------------------------------------------------- WASHINGTON--CONTINUED Washington State, Merlots Project, Ser B23, GO, 3.210%, 12/01/25, Callable 06/01/13 @ 100, MBIA (b) 10,000 10,000 ---------- 31,015 ---------- WISCONSIN (0.6%) ABN AMRO Munitops Certificates Trust, Ser 2004-49, GO, 3.220%, 05/01/12, FSA (b) 9,400 9,400 Appleton Industrial Development, Pro Label Project, RB, AMT, 3.650%, 11/01/12, LOC: Bank One N.A. (b) 585 585 Germantown Industrial, J.W. Speaker Corp. Project, RB, AMT, 3.650%, 08/01/11, LOC: Bank One Milwaukee N.A. (b) 490 490 Oconomowoc Industrial Development, Quest Technologies Project, RB, AMT, 3.500%, 05/01/18, LOC: Bank One Wisconsin (b) 1,190 1,190 ---------- 11,665 ---------- Total Municipal Bonds (Cost $1,789,205) 1,789,205 ---------- MONEY MARKET FUNDS (2.7%) Federated Tax-Free Obligations Fund 12,046,125 12,046 Goldman Sachs Financial Square Funds, Tax Free Money Market Fund 36,820,292 36,820 ---------- Total Money Market Funds (Cost $48,866) 48,866 ---------- Total Investments (Cost $1,838,071) (a) -- 99.7% 1,838,071 Other assets in excess of liabilities -- 0.3% 5,810 ---------- Net Assets -- 100.0% $1,843,881 ==========
See Notes to Financial Statements. 156 SCHEDULES OF PORTFOLIO INVESTMENTS STI CLASSIC FUNDS March 31, 2006 (Amounts in thousands, except shares) TAX-EXEMPT MONEY MARKET FUND -- CONCLUDED - --------------- (a)Aggregate cost for federal income tax and financial reporting purposes is the same. (b)Variable rate security. Rate presented represents rate in effect at March 31, 2006. Maturity date represents actual maturity date. (c)Rule 144A, Section 4(2) or other security which is restricted as to resale to institutional investors. The Fund's advisor has deemed this security to be liquid based upon procedures approved by the Board of Trustees. AMBAC -- Security insured by the American Municipal Bond Assurance Corporation AMT -- Alternative Minimum Tax Paper Cl -- Class COP -- Certificates of Participation FGIC -- Security insured by the Financial Guaranty Insurance Company FHLB -- Security insured by the Federal Home Loan Bank FHLMC -- Security insured by Freddie Mac FNMA -- Security insured by Fannie Mae FSA -- Security insured by Financial Security Assurance GNMA -- Security insured by the Government National Mortgage Association GO -- General Obligation LLC -- Limited Liability Corporation LOC -- Line of Credit MBIA -- Security insured by the Municipal Bond Insurance Association PLC -- Public Limited Company RB -- Revenue Bond Ser -- Series XLCA -- Security insured by XL Capital Assurance, Inc. See Notes to Financial Statements. 157 SCHEDULES OF PORTFOLIO INVESTMENTS STI CLASSIC FUNDS March 31, 2006 (Amounts in thousands, except Shares) U.S. GOVERNMENT SECURITIES MONEY MARKET FUND
- -------------------------------------------------------- Principal Amount($) Value($) - -------------------------------------------------------- U.S. GOVERNMENT AGENCIES (67.1%) FANNIE MAE (18.8%) 3.587%, 04/28/06 (c) 10,000 9,974 4.780%, 05/09/06 (b) 15,000 15,000 4.665%, 05/22/06 (b) 17,000 17,000 3.616%, 05/26/06 (c) 20,000 19,890 4.760%, 07/17/06 (b) 25,000 24,998 4.210%, 09/01/06 (c) 10,000 9,828 4.728%, 12/01/06 (c) 10,000 9,697 4.646%, 12/29/06 (c) 20,000 19,328 -------- 125,715 -------- FEDERAL FARM CREDIT BANK (9.7%) 4.760%, 12/28/06 (b) 15,000 15,001 4.750%, 02/01/07 (b) 50,000 49,999 -------- 65,000 -------- FEDERAL HOME LOAN BANK (26.9%) 3.604%, 05/02/06 (c) 15,000 14,955 4.710%, 07/21/06 (b) 15,000 14,999 4.720%, 07/21/06 (b) 25,000 25,000 4.205%, 08/25/06 10,000 10,002 4.369%, 09/27/06 (c) 10,000 9,791 4.705%, 11/16/06 (b) 15,000 15,000 4.741%, 12/12/06 (c) 15,000 14,525 4.800%, 02/08/07 (b) 15,000 15,000 4.800%, 02/15/07 (b) 20,000 20,000 4.750%, 03/01/07 (b) 10,000 10,000 4.730%, 03/21/07 (b) 30,000 30,000 -------- 179,272 -------- FREDDIE MAC (11.7%) 3.543%, 04/18/06 (c) 10,000 9,984 3.664%, 05/30/06 (c) 15,000 14,913 3.995%, 07/25/06 (c) 10,000 9,877 4.122%, 07/31/06 (c) 10,000 9,867 4.146%, 08/04/06 (c) 10,000 9,861 4.951%, 02/06/07 (c) 10,000 9,591 4.960%, 03/06/07 (c) 15,000 14,332 -------- 78,425 -------- Total U.S. Government Agencies (Cost $448,412) 448,412 --------
- -------------------------------------------------------- Principal Amount($) Value($) - -------------------------------------------------------- REPURCHASE AGREEMENTS (32.9%) Bear Stearns & Co., Inc., 4.745%, dated 03/31/06, to be repurchased on 04/03/06, repurchase price $24,395,139 (collateralized by U.S. Government Agencies; 5.000%, 06/15/31; total market value $24,876,712) 24,386 24,386 BNP Paribas, 4.655%, dated 03/31/06, to be repurchased on 04/03/06, repurchase price $34,503,564 (collateralized by U.S. Government Agencies; DN-5.020%, 11/07/08-02/02/16; total market value $35,180,944) 34,490 34,490 Lehman Brothers, Inc., 4.755%, dated 03/31/06, to be repurchased on 04/03/06, repurchase price $16,870,556 (collateralized by U.S. Government Agencies; DN, 11/01/23-02/01/36; total market value $17,202,389) 16,864 16,864 Merrill Lynch & Co., Inc., 4.725%, dated 03/31/06, to be repurchased on 04/03/06, repurchase price $8,583,857 (collateralized by U.S. Government Agencies; 5.500%, 02/01/35; total market value $8,754,540) 8,580 8,580 Morgan Stanley, 4.705%, dated 03/31/06, to be repurchased on 04/03/06, repurchase price $21,295,871 (collateralized by U.S. Government Agencies; 4.319%-5.000%, 04/01/18-12/01/33; total market value $21,713,349) 21,288 21,288
See Notes to Financial Statements. 158 SCHEDULES OF PORTFOLIO INVESTMENTS STI CLASSIC FUNDS March 31, 2006 (Amounts in thousands, except Shares) U.S. GOVERNMENT SECURITIES MONEY MARKET FUND -- CONCLUDED
- -------------------------------------------------------- Principal Amount($) Value($) - -------------------------------------------------------- REPURCHASE AGREEMENTS--CONTINUED UBS Warburg LLC, 4.755%, dated 03/31/06, to be repurchased on 04/03/06, repurchase price $113,760,120 (collateralized by U.S. Government Agencies; DN-5.500%, 10/26/23-01/25/41; total market value $115,991,940) 113,715 113,715 -------- Total Repurchase Agreements (Cost $219,323) 219,323 -------- Total Investments (Cost $667,735) (a) -- 100.0% 667,735 Liabilities in excess of other assets -- (0.0)% (194) -------- Net Assets -- 100.0% $667,541 ========
- --------------- (a)Aggregate cost for federal income tax and financial reporting purposes is the same. (b)Variable rate security. Rate presented represents rate in effect at March 31, 2006. Maturity date represents actual maturity date. (c)Rate represents the effective yield at purchase. DN -- Discount Note LLC -- Limited Liability Company See Notes to Financial Statements. 159 SCHEDULES OF PORTFOLIO INVESTMENTS STI CLASSIC FUNDS March 31, 2006 (Amounts in thousands, except Shares) U.S. TREASURY MONEY MARKET FUND
- -------------------------------------------------------- Principal Amount($) Value($) - -------------------------------------------------------- U.S. TREASURY OBLIGATIONS (36.1%) U.S. TREASURY BILLS (29.8%) 4.689%, 04/17/06 (b) 250,000 249,545 4.542%, 04/20/06 (b) 247,000 246,372 ---------- 495,917 ---------- U.S. TREASURY NOTES (6.3%) 2.500%, 05/31/06 61,100 60,910 2.375%, 08/31/06 32,400 32,130 2.625%, 11/15/06 12,100 11,969 ---------- 105,009 ---------- Total U.S. Treasury Obligations (Cost $600,926) 600,926 ---------- REPURCHASE AGREEMENTS (64.2%) ABN AMRO Bank N.V., 4.435%, dated 03/31/06, to be repurchased on 04/03/06, repurchase price $220,270,737 (collateralized by U.S. Treasury Obligations, DN-7.250%, due 08/31/06-08/15/28; total market value $224,594,119) 220,190 220,190 Bear Stearns & Co., Inc., 4.405%, dated 03/31/06, to be repurchased on 04/03/06, repurchase price $73,019,232 (collateralized by U.S. Treasury Obligations, 1.875%-6.1250%, due 07/15/15-11/15/27; total market value $74,468,333) 72,992 72,992 BNP Paribas, 4.405%, dated 03/31/06, to be repurchased on 04/03/06, repurchase price $199,070,621 (collateralized by U.S. Treasury Obligations, DN, due 08/10/06-08/17/06; total market value $202,978,341) 198,998 198,998
- -------------------------------------------------------- Principal Amount($) Value($) - -------------------------------------------------------- REPURCHASE AGREEMENTS--CONTINUED Deutsche Bank AG, 4.455%, dated 03/31/06, to be repurchased on 04/03/06, repurchase price $31,429,846 (collateralized by U.S. Treasury Obligations, 4.500%-8.000%, due 05/15/07-10/15/21; total market value $32,047,202) 31,418 31,418 Dresdner Bank AG, 4.455%, dated 03/31/06, to be repurchased 04/03/06, repurchase price $29,852,206 (collateralized by U.S. Treasury Obligations, 3.375%-6.125%, due 08/15/07-11/15/15; total market value $30,441,373) 29,841 29,841 Greenwich Capital Markets, Inc., 4.435%, dated 03/31/06, to be repurchased on 04/03/06, repurchase price $119,518,288 (collateralized by U.S. Treasury Obligations, 4.250%, due 01/15/11; total market value $121,864,933) 119,474 119,474 JPMorgan Chase & Co., 4.355%, dated 03/31/06, to be repurchased 04/03/06, repurchase price $61,585,573 (collateralized by U.S. Treasury Obligations, 4.500%, due 02/15/16; total market value $62,795,324) 61,563 61,563 Lehman Brothers, Inc., 4.455%, dated 03/31/06, to be repurchased on 04/03/06, repurchase price $3,538,302 (collateralized by U.S. Treasury Obligations, 6.250%, due 05/15/30; total market value $3,608,213) 3,537 3,537
See Notes to Financial Statements. 160 SCHEDULES OF PORTFOLIO INVESTMENTS STI CLASSIC FUNDS March 31, 2006 (Amounts in thousands, except Shares) U.S. TREASURY MONEY MARKET FUND -- CONCLUDED
- -------------------------------------------------------- Principal Amount($) Value($) - -------------------------------------------------------- REPURCHASE AGREEMENTS--CONTINUED Merrill Lynch & Co., Inc., 4.385%, dated 03/31/06, to be repurchased on 04/03/06, repurchase price $40,660,843 (collateralized by U.S. Treasury Obligations, 8.750%-9.125%, due 05/15/17-05/15/18; total market value $41,461,619) 40,646 40,646 Morgan Stanley, 4.445%, dated 03/31/06, to be repurchased on 04/03/06, repurchase price $32,241,434 (collateralized by U.S. Treasury Obligations, DN, due 02/15/22; total market value $32,874,308) 32,229 32,229 UBS Warburg LLC, 4.455%, dated 03/31/06, to be repurchased on 04/03/06, repurchase price $256,213,547 (collateralized by U.S. Treasury Obligations, 3.625%, due 01/15/08; total market value $261,244,737) 256,119 256,119 ---------- Total Repurchase Agreements (Cost $1,067,007) 1,067,007 ---------- Total Investments (Cost $1,667,933) (a) -- 100.3% 1,667,933 Liabilities in excess of other assets -- (0.3)% (5,395) ---------- Net Assets -- 100.0% $1,662,538 ==========
- --------------- (a) Aggregate cost for federal income tax purposes is $1,667,935 (amount in thousands). Unrealized appreciation/(depreciation) on a tax basis is as follows (amounts in thousands): Unrealized Appreciation................... $ -- Unrealized Depreciation................... (2) ----- Unrealized Appreciation (Depreciation).... $ (2) =====
(b) Rate represents the effective yield at purchase. DN -- Discount Note LLC -- Limited Liability Corporation See Notes to Financial Statements. 161 SCHEDULES OF PORTFOLIO INVESTMENTS STI CLASSIC FUNDS March 31, 2006 (Amounts in thousands, except Shares) VIRGINIA TAX-FREE MONEY MARKET FUND
- ------------------------------------------------------- Shares or Principal Amount($) Value($) - ------------------------------------------------------- MUNICIPAL BONDS (94.7%) GUAM (2.1%) Guam Power Authority, Ser PA-531, RB, 3.170%, 10/01/18, LOC: Merrill Lynch Capital Services, Inc. (b) 11,025 11,025 -------- OTHER (2.0%) Eagle Tax Exempt Trust Certificates, Ser 994601, RB, 3.210%, 05/15/19, Callable 05/15/09 @ 101 LOC: Citibank N.A. (b) (c) 10,560 10,559 -------- VIRGINIA (82.7%) Albemarle County Industrial Development Authority, University of Virginia Health Services Project, RB, 3.180%, 10/01/22, LOC: Wachovia Bank N.A. (b) 5,995 5,995 Alexandria Industrial Development Authority, American Red Cross Project, RB, 3.230%, 01/01/09, LOC: First Union National Bank (b) 1,600 1,600 Alexandria Industrial Development Authority, Association for Supervision & Currency Project, RB, 3.180%, 07/01/23, LOC: Wachovia National Bank N.A. (b) 1,330 1,330 Alexandria Industrial Development Authority, Educational Facilities, Alexandria County Day School Project, RB, 3.230%, 06/01/25, LOC: First Union National Bank (b) 4,180 4,180
- ------------------------------------------------------- Shares or Principal Amount($) Value($) - ------------------------------------------------------- VIRGINIA--CONTINUED Alexandria Industrial Development Authority, Pooled Loan Program, Ser A, RB, 3.180%, 07/01/26, LOC: Bank of America N.A. (b) 1,000 1,000 Arlington County, Ballston Public Parking Project, RB, 3.270%, 08/01/17, LOC: Citibank N.A. (b) 6,550 6,550 Arlington County, GO, 4.750%, 10/01/06, State Aid Withholding 6,420 6,469 Arlington County, Public Improvement, GO, 3.000%, 05/15/06, State Aid Withholding 1,725 1,726 Ashland Industrial Development Authority, Health & Community Services Facilities, YMCA Greater Richmond Project, Ser A, RB, 3.180%, 11/01/20, LOC: Wachovia Bank N.A. (b) 8,420 8,420 Charles City & County Economic Development Authority, Waste Management, Inc. Project, Ser A, RB, AMT, 3.230%, 02/01/29, LOC: JPMorgan Chase & Co. (b) 4,000 4,000 Chesapeake Bay Bridge & Tunnel Community District Authority, General Resolution Project, RB, 3.200%, 07/01/25, MBIA (b) 6,755 6,755 Chesterfield County Industrial Development Authority, Ser PT-2133, RB, 3.260%, 02/15/07, LOC: Merrill Lynch Capital Services, Inc. (b) 7,995 7,995
See Notes to Financial Statements. 162 SCHEDULES OF PORTFOLIO INVESTMENTS STI CLASSIC FUNDS March 31, 2006 (Amounts in thousands, except Shares) VIRGINIA TAX-FREE MONEY MARKET FUND -- CONTINUED
- ------------------------------------------------------- Shares or Principal Amount($) Value($) - ------------------------------------------------------- VIRGINIA--CONTINUED Chesterfield County Industrial Development Authority, Virginia State University Real Estate Project, Ser A, RB, 3.180%, 07/01/29, LOC: Bank of America N.A. (b) 1,265 1,265 Clarke County Industrial Development Authority, Hospital Facilities, Winchester Medical Center Project, RB, 3.200%, 01/01/30, FSA (b) 18,000 18,000 Danville-Pittsylvania Regional Industrial Facility Authority, Institute of Advanced Research Project, RB, 3.200%, 08/01/12, LOC: Branch Banking & Trust Co. (b) 6,040 6,040 Fairfax County Economic Development Authority, Flint Hill School Project, RB, 3.240%, 09/01/21, LOC: First Union National Bank (b) 4,510 4,510 Fairfax County Economic Development Authority, Public Broadcasting Services Project, RB, 3.160%, 07/01/40, LOC: Bank of America N.A. (b) 12,000 12,000 Fairfax County Economic Development Authority, Smithsonian Institute, Ser A, RB, 3.160%, 12/01/33, LOC: Bank of America N.A. (b) 4,000 4,000 Fairfax County Economic Development Authority, Smithsonian Institute, Ser B, RB, 3.100%, 12/01/33, LOC: Bank of America N.A. (b) 3,700 3,700
- ------------------------------------------------------- Shares or Principal Amount($) Value($) - ------------------------------------------------------- VIRGINIA--CONTINUED Fairfax County Industrial Development Authority, Fairfax Hospital Project, Ser A, RB, 3.120%, 10/01/25 (b) 1,200 1,200 Fairfax County Industrial Development Authority, Fairfax Hospital Project, Ser B, RB, 3.120%, 10/01/25 (b) 4,345 4,345 Fairfax County Industrial Development Authority, Inova Health Systems Project, RB, 3.120%, 01/01/30 (b) 8,925 8,925 Fairfax County Industrial Development Authority, Inova Services Project, Ser A, RB, 3.120%, 01/15/22 (b) 800 800 Fairfax County Water Authority, Municipal Trade Receipts Project, Ser SGB-40A, RB, 3.210%, 04/01/30 (b) 7,850 7,850 Fairfax County Water Authority, Ser A-18, RB, 3.190%, 04/01/23, LOC: IXIS Municipal Products (b) 6,405 6,405 Front Royal & Warren County Industrial Development Authority, Warren Memorial Hospital Project, RB, 3.200%, 05/01/23, LOC: Branch Banking & Trust Co. (b) 570 570 Greater Richmond Convention Center Authority, Hotel Tax, Ser PT-2570, RB, 3.190%, 06/15/23, Callable 06/15/15 @ 100, MBIA (b) 7,175 7,175 Greene County Industrial Development Authority, Blue Ridge School Project, RB, 3.200%, 06/01/26, LOC: Branch Banking & Trust Co. (b) 5,730 5,730
See Notes to Financial Statements. 163 SCHEDULES OF PORTFOLIO INVESTMENTS STI CLASSIC FUNDS March 31, 2006 (Amounts in thousands, except Shares) VIRGINIA TAX-FREE MONEY MARKET FUND -- CONTINUED
- ------------------------------------------------------- Shares or Principal Amount($) Value($) - ------------------------------------------------------- VIRGINIA--CONTINUED Hampton Redevelopment & Housing Authority, Multi- Family Housing, Avalon Pointe Project, RB, AMT, 3.210%, 06/15/26, FNMA (b) 4,537 4,537 Hampton Roads Jail Authority, Ser 569, RB, 3.210%, 07/01/12, MBIA (b) 1,190 1,190 Hanover County Industrial Development Authority, Residential Care Facility, Covenant Woods Project, RB, 3.200%, 07/01/29, LOC: Branch Banking & Trust Co. (b) 16,430 16,430 Harrisonburg Redevelopment & Housing Authority, Multi-Family Housing, Ser PT-3097, RB, 3.300%, 05/01/40 (b) 8,770 8,770 Harrisonburg Redevelopment & Housing Authority, Multi-Family Housing, Stoney Ridge/Dale Project, RB, 3.110%, 08/01/32, FHLMC (b) 8,810 8,810 Henrico County Economic Development Authority, Exempt Facility, White Oak Ltd. Project, RB, 3.220%, 10/01/27, LOC: Citibank N.A. (b) 1,000 1,000 Henrico County Economic Development Authority, Steward School Project, RB, 3.200%, 07/01/33, LOC: Branch Banking & Trust Co. (b) 2,700 2,700 James City & County Economic Development Authority, Industrial Development, Historic Jamestown Project, RB, 3.180%, 11/01/24, LOC: Wachovia Bank N.A. (b) 800 800
- ------------------------------------------------------- Shares or Principal Amount($) Value($) - ------------------------------------------------------- VIRGINIA--CONTINUED King George County Industrial Development Authority, Exempt Facilities, Birchwood Power Partners Project, RB, 3.250%, 11/01/25, LOC: Credit Suisse First Boston (b) 2,000 2,000 King George County Industrial Development Authority, Exempt Facilities, Birchwood Power Partners Project, RB, 4.70%, 3/1/27, 3.250%, 03/01/27, LOC: Credit Suisse First Boston (b) 5,000 5,000 King George County Industrial Development Authority, Exempt Facility, Birchwood Power Partners, Ser B, RB, AMT, 3.190%, 12/01/24, LOC: Bank of Nova Scotia (b) 2,000 2,000 King George County Industrial Development Authority, Lease, Ser PT-2473, RB, 3.190%, 03/01/24, FSA (b) 5,240 5,240 Loudon County Industrial Development Authority, Howard Hughes Medical Institute Project, Ser C, RB, 3.140%, 02/15/38 (b) 5,055 5,055 Loudon County Industrial Development Authority, Howard Hughes Medical Institute Project, Ser D, RB, 3.170%, 02/15/38 (b) 11,950 11,950 Loudon County Industrial Development Authority, Howard Hughes Medical Institute Project, Ser E, RB, 3.170%, 02/15/38 (b) 4,000 4,000 Loudon County Industrial Development Authority, Howard Hughes Medical Institute Project, Ser F, RB, 3.160%, 02/15/38 (b) 4,400 4,400
See Notes to Financial Statements. 164 SCHEDULES OF PORTFOLIO INVESTMENTS STI CLASSIC FUNDS March 31, 2006 (Amounts in thousands, except Shares) VIRGINIA TAX-FREE MONEY MARKET FUND -- CONTINUED
- ------------------------------------------------------- Shares or Principal Amount($) Value($) - ------------------------------------------------------- VIRGINIA--CONTINUED Louisa County Industrial Development Authority, Pooled Financing Project, RB, 3.180%, 01/01/20, LOC: Bank of America N.A. (b) 1,000 1,000 Lynchburg Industrial Development Authority, Aerofin Project, RB, AMT, 3.310%, 03/01/29, LOC: PNC Bank N.A. (b) 2,075 2,075 Lynchburg Industrial Development Authority, Educational Facilities, Randolph Macon Project, RB, 3.180%, 09/01/23, LOC: Wachovia Bank N.A. (b) 7,800 7,800 Lynchburg Industrial Development Hospital Facilities, VHA First Mortgage, Mid Atlantic Project, Ser G, RB, 3.170%, 12/01/25, AMBAC (b) 6,930 6,930 Newport News Industrial Development Authority, CNU Warwick LLC Student Housing Project, RB, 3.180%, 11/01/28, LOC: Bank of America N.A. (b) 4,300 4,300 Norfolk Economic Development Authority, Hospital Facilities, RB, 3.210%, 11/01/34, LOC: Citigroup Global Markets (b) 3,000 3,000 Orange County Industrial Development Authority, Zamma Project, RB, 3.330%, 12/01/22, LOC: SouthTrust Bank N.A. (b) 1,815 1,815
- ------------------------------------------------------- Shares or Principal Amount($) Value($) - ------------------------------------------------------- VIRGINIA--CONTINUED Peninsula Ports Authority, Dominion Terminal Associates Project, Ser C, RB, 3.150%, 07/01/16, LOC: Citibank N.A. (b) 960 960 Peninsula Ports Authority, Riverside Health Systems Project, RB, 3.230%, 07/01/37 (b) 13,600 13,600 Peninsula Ports Authority, Ser 87-A, RB, 3.120%, 04/06/06, LOC: Barclays Bank NY 3,700 3,700 Richmond, Anticipation Notes, GO, 4.500%, 06/22/06 4,750 4,764 Richmond, Ser PT-1601, 3.190%, 07/15/17, LOC: Merrill Lynch Capital Services, Inc. (b) 9,285 9,285 Roanoke Industrial Development Authority, Hollins University Project, RB, 3.180%, 05/01/15, LOC: First Union National Bank (b) 5,500 5,500 Rockingham County Industrial Development Authority, Sunnyside Presbyterian Project, RB, 3.200%, 12/01/33, LOC: Branch Banking & Trust Co. (b) 10,145 10,145 Spotsylvania County Economic Development Authority, Public Facilities, Ser PT-2882, RB, 3.190%, 02/01/25, Callable 02/01/15 @ 100, FSA (b) 1,990 1,990 University of Virginia, Ser A, RB, 3.100%, 06/01/34 (b) 20,200 20,200 Virginia Beach Development Authority, Ocean Ranch Project, RB, 3.200%, 07/01/17, LOC: Branch Banking & Trust Co. (b) 1,740 1,740 Virginia Beach Water & Sewer, RB, 2.800%, 10/01/06 2,835 2,835
See Notes to Financial Statements. 165 SCHEDULES OF PORTFOLIO INVESTMENTS STI CLASSIC FUNDS March 31, 2006 (Amounts in thousands, except Shares) VIRGINIA TAX-FREE MONEY MARKET FUND -- CONTINUED
- ------------------------------------------------------- Shares or Principal Amount($) Value($) - ------------------------------------------------------- VIRGINIA--CONTINUED Virginia College Building Authority, Education Facilities, Ser 134, RB, 3.210%, 09/01/07, FSA (b) 9,400 9,400 Virginia Commonwealth Transportation Board, Federal Highway Reimbursement, RB, 3.000%, 10/01/06 20,940 20,961 Virginia Commonwealth Transportation Board, Ser SG 134, RB, 3.190%, 05/15/22, Callable 05/15/09 @ 101, LOC: Societe Generale (b) 6,995 6,995 Virginia Housing Development Authority, Commonwealth Mortgage, Ser A, RB, AMT, 3.000%, 04/01/06 3,000 3,000 Virginia Housing Development Authority, Commonwealth Mortgage, Ser PA-1310R, RB, 3.190%, 07/01/36, Callable 07/01/11@ 100, MBIA (b) 12,000 12,000 Virginia Resources Authority, Clean Water, Ser PA-790, RB, 3.190%, 10/01/16, Callable 10/01/10 @ 100, LOC: Merrill Lynch Capital Services, Inc. (b) (c) 2,600 2,600 Virginia Resources Authority, Infrastructure, Virginia Pooled Financing Project, Ser C, RB, 5.000%, 11/01/06 1,195 1,207 Virginia Small Business Financing Authority, Virginia Museum of Fine Arts Foundation, RB, 3.160%, 08/01/35, LOC: Wachovia National Bank N.A. (b) 1,000 1,000
- ------------------------------------------------------- Shares or Principal Amount($) Value($) - ------------------------------------------------------- VIRGINIA--CONTINUED Virginia Small Business Financing Authority, Clarke County Industrial Development Project, PA-1052, RB, AMT, 3.300%, 07/01/25, LOC: Branch Banking & Trust Co. (b) 1,695 1,695 Virginia State Port Authority, Port Facility, Ser SG-111, RB, 3.240%, 07/01/24 (b) 14,705 14,705 Virginia State Public Building Authority, Ser 131, RB, 3.200%, 08/01/19, Callable 08/01/08 @ 100 (b) 1,785 1,785 Virginia State Public School Authority, Ser PT-1619, RB, 3.190%, 08/01/08, LOC: Merrill Lynch Capital Services, Inc. (b) (c) 8,450 8,450 Virginia State Public School Authority, Ser II-R 4050, RB, 3.210%, 08/01/17, Callable 08/01/13 @ 100 (b) 4,110 4,110 Virginia State Public School Authority, Ser PT-2746, RB, 3.190%, 08/01/16, Callable 08/01/15 @ 100, State Aid 5,800 5,800 Withholding (b) Virginia State Public School Authority, Ser PT-3269, 3.190%, 08/01/20, Callable 08/01/15 @ 100, State Aid Withholding (b) 11,000 11,000 Williamsburg Industrial Development Authority, Colonial Williamsburg Museum Foundation Project, RB, 3.180%, 12/01/18, LOC: Bank of America N.A. (b) 250 250 -------- 439,014 --------
See Notes to Financial Statements. 166 SCHEDULES OF PORTFOLIO INVESTMENTS STI CLASSIC FUNDS March 31, 2006 (Amounts in thousands, except Shares) VIRGINIA TAX-FREE MONEY MARKET FUND -- CONCLUDED
- ------------------------------------------------------- Shares or Principal Amount($) Value($) - ------------------------------------------------------- PUERTO RICO (7.9%) Puerto Rico Commonwealth, Ser PA-625, GO, 3.160%, 07/01/10, AMBAC (b) 3,000 3,000 Puerto Rico Commonwealth, Ser PA-774 R, 3.160%, 07/01/13, LOC: Merrill Lynch Capital Services, Inc. (b) (c) 7,040 7,040 Puerto Rico Electric Power Authority, Ser PA-778R, RB, 3.160%, 07/01/20, FSA (b) 3,400 3,400 Puerto Rico Electric Power Authority, Ser PT-2636, RB, 3.160%, 07/01/24, Callable 07/01/15 @ 100, FGIC (b) (c) 3,000 3,000 Puerto Rico Electric Power Authority, Ser PT-2957, RB, 3.160%, 07/01/24, Callable 07/01/15 @ 100, MBIA (b) (c) 1,700 1,700 Puerto Rico Municipal Finance Agency, Ser PT-3326, RB, 3.160%, 08/01/21, CIFG (b) 4,845 4,845 Puerto Rico Public Building Authority, Ser 577, RB, 3.160%, 07/01/21, Callable 07/01/07 @ 101.5, AMBAC (b) (c) 7,000 7,000 Puerto Rico Public Building Authority, Ser PT-2973, RB, 3.160%, 07/01/16, FGIC (b) (c) 5,545 5,545 Puerto Rico Public Finance Corp., Ser PA-502, 3.160%, 06/01/19, LOC: Merrill Lynch Capital Services, Inc. (b) (c) 6,315 6,315 -------- 41,845 -------- Total Municipal Bonds (Cost $502,443) 502,443 --------
- ------------------------------------------------------- Shares or Principal Amount($) Value($) - ------------------------------------------------------- MONEY MARKET FUNDS (4.8%) Federated Virginia Municipal Cash Trust, Institutional Class 25,238,217 25,238 -------- Total Money Market Funds (Cost $25,238) 25,238 -------- Total Investments (Cost $527,681) (a) -- 99.5% 527,681 Other assets in excess of liabilities -- 0.5% 2,390 -------- Net Assets -- 100.0% $530,071 ========
- --------------- (a)Aggregate cost for federal income tax and financial reporting purposes is the same. (b)Variable rate security. Rate presented represents rate in effect at March 31, 2006. Maturity date represents actual maturity date. (c)Rule 144A, Section 4(2) or other security which is restricted as to resale to institutional investors. The Fund's advisor has deemed this security to be liquid based upon procedures approved by the Board of Trustees. AMBAC -- Security insured by the American Municipal Bond Assurance Corporation AMT -- Alternative Minimum Tax Paper FGIC -- Security insured by the Financial Guaranty Insurance Company FHLMC -- Security insured by Federal Home Loan Mortgage Corporation FNMA -- Security insured by Fannie Mae FSA -- Security insured by Financial Security Assurance GO -- General Obligation LLC -- Limited Liability Corporation LOC -- Line of Credit MBIA -- Security insured by the Municipal Bond Insurance Association RB -- Revenue Bond Ser -- Series See Notes to Financial Statements. 167 STATEMENTS OF ASSETS AND LIABILITIES STI CLASSIC FUNDS March 31, 2006 (Amounts in thousands)
Core Florida Georgia High High Intermediate Bond Tax-Exempt Tax-Exempt Income Quality Bond Fund Bond Fund Bond Fund Fund Bond Fund Fund -------- ---------- ---------- ------- --------- ------------ Assets: Investments, at Cost.................................. $540,378 $177,040 $125,318 $82,822 $49,614 $80,626 ======== ======== ======== ======= ======= ======= Investments, at Value*................................ $492,402 $177,566 $127,791 $80,757 $48,546 $77,214 Repurchase Agreements, at Cost........................ 38,470 -- -- 2,909 -- 1,961 -------- -------- -------- ------- ------- ------- Total Investments..................................... 530,872 177,566 127,791 83,666 48,546 79,175 Interest and Dividends Receivable..................... 4,325 2,550 1,688 1,482 515 875 Receivable for Capital Shares Issued.................. 2,289 54 209 227 86 202 Receivable for Investment Securities Sold............. 2,895 -- -- 4,612 -- 409 Prepaid Expenses and Other Assets..................... 2 1 1 2 -- -- -------- -------- -------- ------- ------- ------- Total Assets.......................................... 540,383 180,171 129,689 89,989 49,147 80,661 -------- -------- -------- ------- ------- ------- Liabilities: Income Distributions Payable.......................... 1,932 492 398 430 184 300 Payable to Custodian.................................. -- -- -- 348 -- -- Payable for Investment Securities Purchased........... 40,029 -- -- 5,997 -- 1,305 Payable for Capital Shares Redeemed................... -- 363 -- 21 30 763 Payable upon Return of Securities Loaned.............. -- -- -- 9,887 -- -- Investment Advisory Fees Payable...................... 101 85 60 38 17 17 Administration Fees Payable........................... 10 4 2 -- 1 -- Compliance Services Fees Payable...................... 1 -- -- -- -- -- Distribution and Service Fees Payable................. -- 8 9 31 -- -- Custodian Fees Payable................................ 13 3 2 5 3 6 Accrued Expenses...................................... 46 15 11 3 4 11 -------- -------- -------- ------- ------- ------- Total Liabilities..................................... 42,132 970 482 16,760 239 2,402 -------- -------- -------- ------- ------- ------- Total Net Assets...................................... $498,251 $179,201 $129,207 $73,229 $48,908 $78,259 ======== ======== ======== ======= ======= ======= Capital............................................... $512,234 $178,555 $127,359 $74,194 $51,327 $80,394 Undistributed (Distribution in Excess of) Net Investment Income (Loss)............................ 36 (11) (734) 32 80 26 Accumulated Net Realized Gains (Losses) on Investment Transactions........................................ (4,513) 131 109 (1,841) (1,431) (710) Net Unrealized Appreciation (Depreciation) on Investments......................................... (9,506) 526 2,473 844 (1,068) (1,451) -------- -------- -------- ------- ------- ------- Total Net Assets...................................... $498,251 $179,201 $129,207 $73,229 $48,908 $78,259 ======== ======== ======== ======= ======= ======= NET ASSETS: I Shares.............................................. $497,730 $165,341 $115,929 $36,764 $48,908 $78,187 A Shares.............................................. $ 493 $ 5,077 $ 3,711 $ 403 N/A $ 4 C Shares.............................................. $ 28 $ 8,783 $ 9,567 $36,062 N/A $ 68 SHARES OUTSTANDING: I Shares.............................................. 50,497 15,275 11,405 5,276 5,066 7,939 A Shares.............................................. 49 469 364 58 N/A -- C Shares.............................................. 3 810 940 5,176 N/A 7 NET ASSET VALUE AND REDEMPTION PRICE PER SHARE: I Shares.............................................. $ 9.86 $ 10.82 $ 10.16 $ 6.97 $ 9.65 $ 9.85 A Shares.............................................. $ 10.15 $ 10.83 $ 10.18 $ 6.98 N/A $ 9.85 C Shares**............................................ $ 9.86 $ 10.85 $ 10.17 $ 6.97 N/A $ 9.85 OFFERING PRICE PER SHARE (100%/(100%-maximum sales charge) of net asset value adjusted to the nearest cent): I Shares.............................................. $ 9.86 $ 10.82 $ 10.16 $ 6.97 $ 9.65 $ 9.85 A Shares.............................................. $ 10.66 $ 11.37 $ 10.69 $ 7.33 N/A $ 10.34 C Shares.............................................. $ 9.86 $ 10.85 $ 10.17 $ 6.97 N/A $ 9.85 Maximum Sales Charge -- A Shares........................ 4.75% 4.75% 4.75% 4.75% N/A 4.75%
Amounts designated as "--" are $0 or have been rounded to $0. * The High Income Fund includes securities on loan of $9,422. ** Redemption price per share varies by length of time shares are held. See Notes to Financial Statements. 168 STATEMENTS OF ASSETS AND LIABILITIES STI CLASSIC FUNDS March 31, 2006 (Amounts in thousands)
Limited- Investment Term Federal Investment Grade Limited Mortgage Maryland Grade Bond Tax-Exempt Duration Securities Municipal Fund Bond Fund Fund Fund Bond Fund ---------- ---------- -------- ------------ --------- Assets: Investments, at Cost...................................... $769,206 $331,689 $58,337 $430,953 $41,876 ======== ======== ======= ======== ======= Investments, at Value*.................................... $750,533 $331,479 $56,334 $408,753 $42,422 Repurchase Agreements, at Cost............................ 7,221 -- 1,991 15,029 -- -------- -------- ------- -------- ------- Total Investments......................................... 757,754 331,479 58,325 423,782 42,422 Interest and Dividends Receivable......................... 5,418 4,800 634 1,779 501 Receivable for Capital Shares Issued...................... 1,338 281 142 716 141 Receivable for Investment Securities Sold................. 4,537 4,320 -- 84 451 Prepaid Expenses and Other Assets......................... 3 2 1 2 -- -------- -------- ------- -------- ------- Total Assets.............................................. 769,050 340,882 59,102 426,363 43,515 -------- -------- ------- -------- ------- Liabilities: Payable for Fund Overdraft................................ -- 60 -- -- -- Income Distributions Payable.............................. 2,037 861 188 1,419 128 Payable for Investment Securities Purchased............... 8,109 12,080 8 74 783 Payable for Capital Shares Redeemed....................... 1,565 227 -- 436 38 Payable upon Return of Securities Loaned.................. 243,191 -- -- 29,675 -- Investment Advisory Fees Payable.......................... 224 143 4 168 20 Administration Fees Payable............................... -- 6 1 -- -- Compliance Services Fees Payable.......................... 1 -- -- -- -- Distribution and Service Fees Payable..................... 17 13 -- 18 8 Custodian Fees Payable.................................... 23 5 3 10 2 Accrued Expenses.......................................... 69 35 11 62 2 -------- -------- ------- -------- ------- Total Liabilities......................................... 255,236 13,430 215 31,862 981 -------- -------- ------- -------- ------- Total Net Assets.......................................... $513,814 $327,452 $58,887 $394,501 $42,534 ======== ======== ======= ======== ======= Capital................................................... $532,068 $327,341 $58,895 $415,860 $41,929 Undistributed (Distribution in Excess of) Net Investment Income (Loss)........................................... 812 (162) -- 1,019 (42) Accumulated Net Realized Gains (Losses) on Investment Transactions............................................ (7,614) 483 4 (15,207) 101 Net Unrealized Appreciation (Depreciation) on Investments............................................. (11,452) (210) (12) (7,171) 546 -------- -------- ------- -------- ------- Total Net Assets.......................................... $513,814 $327,452 $58,887 $394,501 $42,534 ======== ======== ======= ======== ======= NET ASSETS: I Shares.................................................. $480,024 $300,986 $58,887 $369,991 $32,699 A Shares.................................................. $ 20,210 $ 16,182 N/A $ 4,398 $ 502 C Shares.................................................. $ 13,580 $ 10,284 N/A $ 20,112 $ 9,333 SHARES OUTSTANDING: I Shares.................................................. 46,170 26,452 5,897 37,439 3,224 A Shares.................................................. 1,945 1,421 N/A 446 49 C Shares.................................................. 1,306 904 N/A 2,034 917 NET ASSET VALUE AND REDEMPTION PRICE PER SHARE: I Shares.................................................. $ 10.40 $ 11.38 $ 9.99 $ 9.88 $ 10.14 A Shares.................................................. $ 10.40 $ 11.39 N/A $ 9.87 $ 10.15 C Shares**................................................ $ 10.40 $ 11.37 N/A $ 9.89 $ 10.16 OFFERING PRICE PER SHARE (100%/(100%-maximum sales charge) of net asset value adjusted to the nearest cent): I Shares.................................................. $ 10.40 $ 11.38 $ 9.99 $ 9.88 $ 10.14 A Shares.................................................. $ 10.92 $ 11.96 N/A $ 10.12 $ 10.66 C Shares.................................................. $ 10.40 $ 11.37 N/A $ 9.89 $ 10.16 Maximum Sales Charge -- A Shares............................ 4.75% 4.75% N/A 2.50% 4.75%
Amounts designated as "--" are $0 or have been rounded to $0. * The Investment Grade Bond Fund and Limited-Term Federal Mortgage Securities Fund include securities on loan of $235,428 and $28,902, respectively. ** Redemption price per share varies by length of time shares are held. See Notes to Financial Statements. 169 STATEMENTS OF ASSETS AND LIABILITIES STI CLASSIC FUNDS March 31, 2006 (Amounts in thousands)
Seix Short-Term North Carolina Floating Rate Seix Short-Term U.S. Treasury Strategic Tax-Exempt High Income High Yield Bond Securities Income Bond Fund Fund Fund Fund Fund Fund -------------- ------------- ---------- ---------- ------------- --------- Assets: Investments, at Cost..................... $42,522 $133,774 $1,386,315 $381,187 $80,066 $391,280 ======= ======== ========== ======== ======= ======== Investments, at Value*................... $42,457 $133,445 $1,351,189 $376,928 $78,955 $389,512 Repurchase Agreements, at Cost........... -- -- 25,696 -- -- -- ------- -------- ---------- -------- ------- -------- Total Investments........................ 42,457 133,445 1,376,885 376,928 78,955 389,512 Cash..................................... -- -- 39 -- -- -- Interest and Dividends Receivable........ 570 231 22,094 2,416 796 3,343 Receivable for Capital Shares Issued..... -- 432 5,951 522 176 339 Receivable for Investment Securities Sold................................... -- 6,039 5,295 25 -- 21,602 Reclaims Receivable...................... -- -- -- -- -- 247 Prepaid Expenses and Other Assets........ 1 -- 13 4 3 10 ------- -------- ---------- -------- ------- -------- Total Assets............................. 43,028 140,147 1,410,277 379,895 79,930 415,053 ------- -------- ---------- -------- ------- -------- Liabilities: Payable for Fund Overdraft............... -- 529 -- -- -- -- Income Distributions Payable............. 116 434 6,701 984 208 1,065 Payable for Investment Securities Purchased.............................. 1,493 32,733 24,009 -- -- 31,787 Payable for Capital Shares Redeemed...... -- -- 6,249 249 368 1,221 Payable for Forward Foreign Currency Contracts.............................. -- -- -- -- -- 13 Payable upon Return of Securities Loaned................................. -- -- 112,889 82,596 -- 89,171 Investment Advisory Fees Payable......... 19 20 463 101 27 148 Administration Fees Payable.............. 1 -- 27 -- -- 5 Compliance Services Fees Payable......... -- -- 2 -- -- -- Distribution and Service Fees Payable.... -- -- 13 9 18 41 Custodian Fees Payable................... 1 -- 47 14 3 34 Accrued Expenses......................... 10 26 93 39 21 22 ------- -------- ---------- -------- ------- -------- Total Liabilities........................ 1,640 33,742 150,493 83,992 645 123,507 ------- -------- ---------- -------- ------- -------- Total Net Assets......................... $41,388 $106,405 $1,259,784 $295,903 $79,285 $291,546 ======= ======== ========== ======== ======= ======== Capital.................................. $41,691 $106,736 $1,279,579 $310,230 $82,134 $302,337 Undistributed (Distribution in Excess of) Net Investment Income (Loss)........... (64) 17 55 136 (2) (3,968) Accumulated Net Realized Gains (Losses) on Investment Transactions, Foreign Currency Transactions and Options...... (174) (19) (10,420) (10,204) (1,736) (5,033) Net Unrealized Appreciation (Depreciation) on Investments and Foreign Currency Transactions.......... (65) (329) (9,430) (4,259) (1,111) (1,790) ------- -------- ---------- -------- ------- -------- Total Net Assets......................... $41,388 $106,405 $1,259,784 $295,903 $79,285 $291,546 ======= ======== ========== ======== ======= ======== NET ASSETS: I Shares................................. $41,276 $106,405 $1,217,679 $281,282 $54,991 $243,102 A Shares................................. $ 110 N/A $ 36,291 $ 5,062 $ 4,336 $ 1,741 C Shares................................. $ 2 N/A $ 5,814 $ 9,559 $19,958 $ 46,703 SHARES OUTSTANDING: I Shares................................. 4,167 10,678 113,924 28,977 5,612 25,207 A Shares................................. 11 N/A 3,471 520 443 179 C Shares................................. -- N/A 544 982 2,041 4,841 NET ASSET VALUE AND REDEMPTION PRICE PER SHARE: I Shares................................. $ 9.90 $ 9.96 $ 10.69 $ 9.71 $ 9.80 $ 9.64 A Shares................................. $ 9.88 N/A $ 10.45 $ 9.73 $ 9.79 $ 9.68 C Shares**............................... $ 9.89 N/A $ 10.68 $ 9.73 $ 9.78 $ 9.65 OFFERING PRICE PER SHARE (100%/(100%-maximum sales charge) of net asset value adjusted to the nearest cent): I Shares................................. $ 9.90 $ 9.96 $ 10.69 $ 9.71 $ 9.80 $ 9.64 A Shares................................. $ 10.37 N/A $ 10.97 $ 9.98 $ 10.04 $ 10.16 C Shares................................. $ 9.89 N/A $ 10.68 $ 9.73 $ 9.78 $ 9.65 Maximum Sales Charge -- A Shares........... 4.75% N/A 4.75% 2.50% 2.50% 4.75%
Amounts designated as "--" are $0 or have been rounded to $0. * The Seix High Yield Fund, Short-Term Bond Fund and Strategic Income Fund include securities on loan of $107,738, $80,369 and $86,496, respectively. ** Redemption price per share varies by length of time shares are held. See Notes to Financial Statements. 170 STATEMENTS OF ASSETS AND LIABILITIES STI CLASSIC FUNDS March 31, 2006 (Amounts in thousands)
U.S. Government Virginia Total U.S. Securities Ultra- Intermediate Virginia Return Government Ultra-Short Short Municipal Municipal Bond Fund Securities Fund Bond Fund Bond Fund Bond Fund Bond Fund --------- --------------- --------------- --------- ------------ --------- Assets: Investments, at Cost..................... $66,962 $461,537 $43,304 $265,768 $168,948 $54,099 ======= ======== ======= ======== ======== ======= Investments, at Value*................... $61,589 $441,095 $42,981 $264,619 $170,485 $55,021 Repurchase Agreements, at Cost........... 4,084 14,059 -- -- -- -- ------- -------- ------- -------- -------- ------- Total Investments........................ 65,673 455,154 42,981 264,619 170,485 55,021 Interest and Dividends Receivable........ 539 1,712 208 1,407 2,393 753 Receivable for Capital Shares Issued..... 55 433 39 263 158 84 Receivable for Investment Securities Sold................................... 591 57 197 8 3,176 532 Reclaims Receivable...................... 5 -- -- -- -- -- Prepaid Expenses and Other Assets........ -- 2 10 7 1 -- ------- -------- ------- -------- -------- ------- Total Assets............................. 66,863 457,358 43,435 266,304 176,213 56,390 ------- -------- ------- -------- -------- ------- Liabilities: Income Distributions Payable............. 244 1,282 152 893 511 171 Payable for Investment Securities Purchased.............................. 4,623 50 -- 5,240 -- -- Payable for Capital Shares Redeemed...... -- 802 -- 412 357 83 Payable upon Return of Securities Loaned................................. -- 127,594 637 14,417 -- -- Investment Advisory Fees Payable......... 19 139 8 46 82 26 Administration Fees Payable.............. -- 1 -- -- 1 -- Distribution and Service Fees Payable.... -- 8 -- -- 1 4 Custodian Fees Payable................... 7 8 2 9 4 2 Accrued Expenses......................... 4 58 20 30 25 4 ------- -------- ------- -------- -------- ------- Total Liabilities........................ 4,897 129,942 819 21,047 981 290 ------- -------- ------- -------- -------- ------- Total Net Assets......................... $61,966 $327,416 $42,616 $245,257 $175,232 $56,100 ======= ======== ======= ======== ======== ======= Capital.................................. $64,687 $339,657 $44,073 $247,944 $173,836 $55,224 Undistributed (Distribution in Excess of) Net Investment Income (Loss)........... (74) 605 111 375 (18) (17) Accumulated Net Realized Gains (Losses) on Investment Transactions and Foreign Currency Transactions.................. (1,358) (6,463) (1,245) (1,913) (123) (29) Net Unrealized Appreciation (Depreciation) on Investments and Foreign Currency Transactions.......... (1,289) (6,383) (323) (1,149) 1,537 922 ------- -------- ------- -------- -------- ------- Total Net Assets......................... $61,966 $327,416 $42,616 $245,257 $175,232 $56,100 ======= ======== ======= ======== ======== ======= NET ASSETS: I Shares................................. $61,966 $316,475 $42,616 $245,257 $169,743 $51,548 A Shares................................. N/A $ 3,032 N/A N/A $ 5,480 $ 63 C Shares................................. N/A $ 7,909 N/A N/A $ 9 $ 4,489 SHARES OUTSTANDING: I Shares................................. 6,386 31,050 4,324 24,624 16,957 5,046 A Shares................................. N/A 298 N/A N/A 547 6 C Shares................................. N/A 776 N/A N/A 1 437 NET ASSET VALUE AND REDEMPTION PRICE PER SHARE: I Shares................................. $ 9.70 $ 10.19 $ 9.85 $ 9.96 $ 10.01 $ 10.22 A Shares................................. N/A $ 10.19 N/A N/A $ 10.01 $ 10.20 C Shares**............................... N/A $ 10.19 N/A N/A $ 10.01 $ 10.26 OFFERING PRICE PER SHARE (100%/(100%-maximum sales charge) of net asset value adjusted to the nearest cent): I Shares................................. $ 9.70 $ 10.19 $ 9.85 $ 9.96 $ 10.01 $ 10.22 A Shares................................. N/A $ 10.70 N/A N/A $ 10.51 $ 10.71 C Shares................................. N/A $ 10.19 N/A N/A $ 10.01 $ 10.26 Maximum Sales Charge -- A Shares........... N/A 4.75% N/A N/A 4.75% 4.75%
Amounts designated as "--" are $0 or have been rounded to $0. * The U.S. Government Securities Fund, U.S. Government Securities Ultra-Short Bond Fund and Ultra-Short Bond Fund include securities on loan of $123,842, $623 and $13,985, respectively. ** Redemption price per share varies by length of time shares are held. See Notes to Financial Statements. 171 STATEMENTS OF ASSETS AND LIABILITIES STI CLASSIC FUNDS March 31, 2006 (Amounts in thousands)
U.S. Government Virginia Prime Quality Tax-Exempt Securities U.S. Treasury Tax-Free Money Market Money Market Money Market Money Market Money Market Fund Fund Fund Fund Fund ------------- ------------ --------------- ------------- ------------ Assets: Total Investments, at Cost...................... $7,025,086 $1,838,071 $667,735 $1,667,933 $527,681 ========== ========== ======== ========== ======== Investments, at Value........................... $6,970,507 $1,838,071 $448,412 $ 600,926 $527,681 Repurchase Agreements, at Value................. 54,579 -- 219,323 1,067,007 -- ---------- ---------- -------- ---------- -------- Total Investments, at Value..................... 7,025,086 1,838,071 667,735 1,667,933 527,681 Cash............................................ -- 4 -- -- 1 Accrued Income.................................. 31,622 9,553 2,661 5,265 3,086 Receivable for Capital Shares Issued............ 14,216 1,427 933 75 700 Receivable for Investment Securities Sold....... -- -- -- 249,458 -- Prepaid Expenses and Other Assets............... 31 8 4 8 3 ---------- ---------- -------- ---------- -------- Total Assets.................................... 7,070,955 1,849,063 671,333 1,922,739 531,471 ---------- ---------- -------- ---------- -------- Liabilities: Income Distributions Payable.................... 23,767 4,115 2,249 5,236 1,115 Payable for Investment Securities Purchased..... 50,341 -- 1,078 254,025 -- Investment Advisory Fees Payable................ 2,948 705 326 731 176 Administration Fees Payable..................... 2 41 8 30 11 Compliance Services Fees Payable................ 9 2 1 2 1 Distribution and Service Fees Payable........... 502 86 34 2 39 Custodian Fees Payable.......................... 137 20 9 16 5 Accrued Expenses................................ 816 213 87 159 53 ---------- ---------- -------- ---------- -------- Total Liabilities............................... 78,522 5,182 3,792 260,201 1,400 ---------- ---------- -------- ---------- -------- Total Net Assets................................ $6,992,433 $1,843,881 $667,541 $1,662,538 $530,071 ========== ========== ======== ========== ======== Net Assets: Capital......................................... $6,992,419 $1,843,853 $667,540 $1,662,688 $530,062 Undistributed (Distributions in Excess of) Net Investment Income............................. (74) (1) -- 62 5 Accumulated Net Realized Gain (Loss) on Investment Transactions....................... 88 29 1 (212) 4 ---------- ---------- -------- ---------- -------- Total Net Assets................................ $6,992,433 $1,843,881 $667,541 $1,662,538 $530,071 ========== ========== ======== ========== ======== NET ASSETS: I Shares........................................ $2,976,881 $1,172,717 $413,893 $1,650,172 $226,319 A Shares........................................ $4,011,561 $ 671,164 $253,648 $ 12,366 $303,752 C Shares........................................ $ 3,991 N/A N/A N/A N/A SHARES OUTSTANDING: I Shares........................................ 2,976,916 1,172,667 413,893 1,650,321 226,316 A Shares........................................ 4,011,511 671,186 253,648 12,237 303,746 C Shares........................................ 3,992 N/A N/A N/A N/A NET ASSET VALUE, OFFERING AND REDEMPTION PRICE PER SHARE: I Shares........................................ $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 A Shares........................................ $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 C Shares*....................................... $ 1.00 N/A N/A N/A N/A
Amounts designated as "--" are $0 or have been rounded to $0. * Redemption price per share varies by length of time shares are held. See Notes to Financial Statements. 172 STATEMENTS OF OPERATIONS STI CLASSIC FUNDS For the Year Ended March 31, 2006 (Amounts in thousands)
Core Florida Georgia High High Bond Tax-Exempt Tax-Exempt Income Quality Intermediate Fund Bond Fund Bond Fund Fund Bond Fund Bond Fund -------- ---------- ---------- ------ --------- ------------ Investment Income: Interest Income........................................ $ 16,854 $6,655 $4,012 $6,862 $ 2,188 $ 2,851 Dividend Income........................................ -- 276 61 163 25 12 Income from Securities Lending......................... -- -- -- 67 -- -- -------- ------ ------ ------ ------- ------- Total Investment Income................................ 16,854 6,931 4,073 7,092 2,213 2,863 -------- ------ ------ ------ ------- ------- Expenses: Investment Advisory Fees............................... 969 1,076 687 574 241 170 Administration and Fund Accounting Fees................ 102 49 31 22 15 18 Compliance Services Fees............................... 3 2 1 1 -- 1 Distribution Fees -- A Shares.......................... 1 9 5 1 -- -- Distribution and Service Fees -- C Shares.............. -- 111 103 423 -- -- Shareholder Service Fees -- Institutional Shares....... -- 31 -- Shareholder Service Fees -- T Shares................... 114 30 5 Custodian Fees......................................... 29 8 8 15 5 6 Professional Fees...................................... (4) 9 6 4 (2) 3 Insurance Fees......................................... 3 4 2 3 1 -- Registration Fees...................................... 3 16 17 19 7 1 Transfer Agent Fees.................................... -- 4 3 28 2 -- Printing Fees.......................................... 16 12 10 14 2 3 Trustees Fees.......................................... 6 4 3 2 1 1 Other Expenses......................................... 22 9 10 15 (1) 10 -------- ------ ------ ------ ------- ------- Total Expenses......................................... 1,264 1,313 886 1,121 332 218 Less: Investment Advisory Fees Waived................ -- (24) (18) (69) (74) -- Less: Administration Fees Waived..................... -- -- (2) (14) -- (3) Less: Shareholder Service Fees Waived -- Institutional Shares..................... -- (6) -- Less: Shareholder Service Fees Waived -- T Shares.... (79) (2) -- Less: Distribution and Service Fees Waived -- C Shares............................................. -- (10) (8) (47) -- -- -------- ------ ------ ------ ------- ------- Net Expenses........................................... 1,185 1,279 858 991 250 215 -------- ------ ------ ------ ------- ------- Net Investment Income.................................. 15,669 5,652 3,215 6,101 1,963 2,648 -------- ------ ------ ------ ------- ------- Net Realized and Unrealized Gain (Loss) on Investments: Net Realized Gain (Loss) on Investments Sold........... (2,853) 1,124 133 (1,302) (451) (617) Net Change in Unrealized Appreciation (Depreciation) on Investments.......................................... (8,256) (1,704) 179 859 (574) (1,076) -------- ------ ------ ------ ------- ------- Total Net Realized and Unrealized Gain (Loss) on Investments.......................................... (11,109) (580) 312 (443) (1,025) (1,693) -------- ------ ------ ------ ------- ------- Net Change in Net Assets from Operations............... $ 4,560 $5,072 $3,527 $5,658 $ 938 $ 955 ======== ====== ====== ====== ======= =======
Amounts designated as "--" are $0 or have been rounded to $0. See Notes to Financial Statements. 173 STATEMENTS OF OPERATIONS STI CLASSIC FUNDS For the Year Ended March 31, 2006 (Amounts in thousands)
Investment Investment Grade Limited Limited-Term Maryland Grade Tax-Exempt Duration Federal Mortgage Municipal Bond Fund Bond Fund Fund Securities Fund Bond Fund ---------- ---------------- ----------- ---------------- --------- Investment Income: Interest Income.................................... $ 25,206 $10,605 $2,260 $15,673 $1,836 Dividend Income.................................... -- 615 -- -- 23 Income from Securities Lending..................... 1,185 -- -- 32 -- -------- ------- ------ ------- ------ Total Investment Income............................ 26,391 11,220 2,260 15,705 1,859 -------- ------- ------ ------- ------ Expenses: Investment Advisory Fees........................... 3,394 1,855 64 2,154 250 Administration and Fund Accounting Fees............ 153 85 24 103 11 Compliance Services Fees........................... 5 3 1 3 -- Distribution Fees -- A Shares...................... 77 62 -- 13 -- Distribution and Service Fees -- C Shares.......... 158 132 -- 269 116 Custodian Fees..................................... 44 11 4 23 6 Professional Fees.................................. 35 15 (16) 18 1 Insurance Fees..................................... 16 5 -- 8 -- Registration Fees.................................. 56 39 6 61 12 Transfer Agent Fees................................ (25) 12 (1) 23 4 Printing Fees...................................... 38 21 3 28 4 Trustees Fees...................................... 15 6 -- 8 1 Other Expenses..................................... 39 12 10 20 3 -------- ------- ------ ------- ------ Total Expenses..................................... 4,005 2,258 95 2,731 408 Less: Investment Advisory Fees Waived............ (4) (3) -- (45) (9) Less: Administration Fees Waived................. (16) (1) -- (15) (2) Less: Distribution and Service Fees Waived -- C Shares......................................... (3) (3) -- (36) -- -------- ------- ------ ------- ------ Net Expenses....................................... 3,982 2,251 95 2,635 397 -------- ------- ------ ------- ------ Net Investment Income.............................. 22,409 8,969 2,165 13,070 1,462 -------- ------- ------ ------- ------ Net Realized and Unrealized Gain (Loss) on Investments: Net Realized Gain (Loss) on Investments Sold....... 7,288 1,313 4 (2,545) 298 Net Change in Unrealized Appreciation (Depreciation) on Investments.................... (12,042) (1,585) (13) (2,631) (442) -------- ------- ------ ------- ------ Total Net Realized and Unrealized Loss on Investments...................................... (4,754) (272) (9) (5,176) (144) -------- ------- ------ ------- ------ Net Change in Net Assets from Operations........... $ 17,655 $ 8,697 $2,156 $ 7,894 $1,318 ======== ======= ====== ======= ======
Amounts designated as "--" are $0 or have been rounded to $0. See Notes to Financial Statements. 174 STATEMENTS OF OPERATIONS STI CLASSIC FUNDS For the Year Ended March 31, 2006 (Amounts in thousands)
Seix Short-Term North Carolina Floating Rate Seix Short-Term U.S. Treasury Strategic Tax-Exempt High Income High Yield Bond Securities Income Bond Fund Fund (a) Fund Fund Fund Fund -------------- ------------- ---------- ---------- --------------- --------- Investment Income: Interest Income........................ $1,533 $ 457 $ 85,237 $11,227 $3,125 $ 14,880 Dividend Income........................ 35 24 36 204 19 111 Income from Securities Lending......... -- -- 411 159 -- 671 Less: Foreign Taxes Withheld........... -- -- -- -- -- (6) ------ ----- -------- ------- ------ -------- Total Investment Income................ 1,568 481 85,684 11,590 3,144 15,656 ------ ----- -------- ------- ------ -------- Expenses: Investment Advisory Fees............... 236 38 5,825 1,453 463 2,089 Administration and Fund Accounting Fees................................. 11 2 327 79 25 80 Compliance Services Fees............... -- -- 11 -- 1 3 Distribution Fees -- A Shares.......... -- 58 12 9 9 Distribution and Service Fees -- C Shares............................... -- 48 122 268 639 Shareholder Service Fees -- T Shares... 2 Custodian Fees......................... 1 -- 12 26 7 154 Professional Fees...................... 1 2 46 15 4 12 Insurance Fees......................... 3 -- 6 7 3 4 Registration Fees...................... 7 10 32 46 36 28 Transfer Agent Fees.................... 5 -- (9) 12 24 32 Printing Fees.......................... 18 11 56 24 8 21 Trustees Fees.......................... 2 -- 11 6 2 5 Other Expenses......................... 2 4 37 30 22 13 ------ ----- -------- ------- ------ -------- Total Expenses......................... 286 67 6,462 1,832 872 3,089 Less: Investment Advisory Fees Waived............................. (6) (18) (69) (51) (40) (93) Less: Administration Fees Waived..... -- (2) -- (11) (15) (7) Less: Distribution Fees Waived -- A Shares............................. -- -- -- -- (1) Less: Distribution and Service Fees Waived -- C Shares................. -- (4) (18) (55) (103) ------ ----- -------- ------- ------ -------- Net Expenses........................... 280 47 6,389 1,752 762 2,885 ------ ----- -------- ------- ------ -------- Net Investment Income.................. 1,288 434 79,295 9,838 2,382 12,771 ------ ----- -------- ------- ------ -------- Net Realized and Unrealized Gain (Loss) on Investments, Options and Foreign Currency Transactions: Net Realized Gain (Loss) on Investments Sold, Forward Foreign Currency Contracts, Options and Foreign Currency Transactions................ (35) (19) (10,259) 531 (808) (12,508) Net Change in Unrealized Appreciation (Depreciation) on Investments, Forward Foreign Currency Contracts, Foreign Currencies and Translation of Other Assets and Liabilities in Foreign Currency..................... 166 (329) (1,686) (947) (122) (161) ------ ----- -------- ------- ------ -------- Total Net Realized and Unrealized Gain (Loss) on Investments, Options and Foreign Currency Transactions........ 131 (348) (11,945) (416) (930) (12,669) ------ ----- -------- ------- ------ -------- Net Change in Net Assets from Operations........................... $1,419 $ 86 $ 67,350 $ 9,422 $1,452 $ 102 ====== ===== ======== ======= ====== ========
(a) Commencement of operations on March 2, 2006. Amounts designated as "--" are $0 or have been rounded to $0. See Notes to Financial Statements. 175 STATEMENTS OF OPERATIONS STI CLASSIC FUNDS For the Year Ended March 31, 2006 (Amounts in thousands)
U.S. Government Virginia Total Return Securities Ultra-Short Intermediate Virginia Bond U.S. Government Ultra-Short Bond Municipal Municipal Fund Securities Fund Bond Fund Fund Bond Fund Bond Fund ------------ --------------- --------------- ----------- ------------ --------- Investment Income: Interest Income..................... $ 2,830 $14,852 $2,078 $8,505 $7,149 $2,366 Dividend Income..................... -- -- 16 62 39 28 Income from Securities Lending...... -- 460 2 12 -- -- Less: Foreign Taxes Withheld........ (1) -- -- -- -- -- ------- ------- ------ ------ ------ ------ Total Investment Income............. 2,829 15,312 2,096 8,579 7,188 2,394 ------- ------- ------ ------ ------ ------ Expenses: Investment Advisory Fees............ 246 2,072 150 703 1,053 329 Administration and Fund Accounting Fees.............................. 16 95 15 59 47 15 Compliance Services Fees............ 1 3 -- 2 2 -- Distribution Fees -- A Shares....... -- 11 -- -- 10 -- Distribution and Service Fees -- C Shares............................ 99 17 -- 54 Shareholder Service Fees -- Institutional Shares...... 40 35 57 Shareholder Service Fees -- T Shares............................ 7 132 Custodian Fees...................... 20 19 11 25 11 6 Professional Fees................... 3 17 3 10 9 3 Insurance Fees...................... 1 6 2 5 4 1 Registration Fees................... 6 50 15 23 17 15 Transfer Agent Fees................. -- 12 3 -- 2 2 Printing Fees....................... 3 24 3 8 34 7 Trustees Fees....................... 2 7 1 4 4 4 Other Expenses...................... 15 32 27 36 12 16 ------- ------- ------ ------ ------ ------ Total Expenses...................... 360 2,447 282 1,064 1,205 452 Less: Investment Advisory Fees Waived.......................... (3) (5) (63) (206) (11) (4) Less: Administration Fees Waived.......................... (5) (9) (10) (8) (3) (10) Less: Shareholder Service Fees Waived -- Institutional Shares.......................... (9) (35) (43) Less: Shareholder Service Fees Waived -- T Shares.............. (1) -- Less: Distribution Fees Waived -- A Shares.............. -- (1) -- Less: Distribution and Service Fees Waived -- C Shares......... (1) (4) -- -- ------- ------- ------ ------ ------ ------ Net Expenses........................ 342 2,432 170 807 1,190 438 ------- ------- ------ ------ ------ ------ Net Investment Income............... 2,487 12,880 1,926 7,772 5,998 1,956 ------- ------- ------ ------ ------ ------ Net Realized and Unrealized Gain (Loss) on Investments and Foreign Currency Transactions: Net Realized Gain (Loss) on Investments Sold, Forward Foreign Currency Contracts and Foreign Currency Transactions............. (531) (944) (126) (421) 280 250 Net Change in Unrealized Appreciation (Depreciation) on Investments, Forward Foreign Currency Contracts, Foreign Currencies and Translation of Other Assets and Liabilities in Foreign Currency.................. (1,103) (5,944) (71) (420) (865) (435) ------- ------- ------ ------ ------ ------ Total Net Realized and Unrealized Gain (Loss) on Investments and Foreign Currency Transactions..... (1,634) (6,888) (197) (841) (585) (185) ------- ------- ------ ------ ------ ------ Net Change in Net Assets from Operations........................ $ 853 $ 5,992 $1,729 $6,931 $5,413 $1,771 ======= ======= ====== ====== ====== ======
Amounts designated as "--" are $0 or have been rounded to $0. See Notes to Financial Statements. 176 STATEMENTS OF OPERATIONS STI CLASSIC FUNDS For the Year Ended March 31, 2006 (Amounts in thousands)
U.S. Government Virginia Prime Quality Tax-Exempt Securities U.S. Treasury Tax-Free Money Money Market Money Market Money Market Money Market Market Fund Fund Fund Fund Fund ------------- ------------ --------------- ------------- ------------ Investment Income: Interest Income................................. $219,742 $45,389 $26,472 $52,745 $13,407 Dividend Income................................. 5,388 1,304 -- -- 275 -------- ------- ------- ------- ------- Total Investment Income......................... 225,130 46,693 26,472 52,745 13,682 -------- ------- ------- ------- ------- Expenses: Investment Advisory Fees........................ 32,146 8,036 4,261 8,471 1,996 Administration and Fund Accounting Fees......... 1,545 446 192 387 131 Compliance Services Fees........................ 51 14 6 13 4 Distribution Fees -- A Shares................... 4,532 923 377 8 663 Distribution and Service Fees -- C Shares....... 30 Custodian Fees.................................. 274 48 19 34 13 Professional Fees............................... 291 78 31 69 22 Insurance Fees.................................. 102 28 14 21 8 Registration Fees............................... 299 96 69 86 43 Transfer Agent Fees............................. (8) (1) (3) (6) (1) Printing Fees................................... 621 71 34 61 21 Trustees' Fees.................................. 120 46 23 30 11 Other Expenses.................................. 231 118 52 56 31 -------- ------- ------- ------- ------- Total Expenses.................................. 40,234 9,903 5,075 9,230 2,942 Less: Investment Advisory Fees Waived......... (1,596) (463) (203) (338) -- Less: Administration Fees Waived.............. (175) -- (9) (6) -- Less: Distribution Fees Waived -- A Shares.... -- -- -- -- (175) Less: Distribution and Service Fees Waived -- C Shares.......................... (15) -------- ------- ------- ------- ------- Net Expenses.................................... 38,448 9,440 4,863 8,886 2,767 -------- ------- ------- ------- ------- Net Investment Income........................... 186,682 37,253 21,609 43,859 10,915 -------- ------- ------- ------- ------- Net Realized Gain (Loss) on Investments: Net Realized Gain (Loss) on Investment Sold..... 114 103 -- (14) 107 Net Increase from Payments by Affiliates and Net Gains (Losses) Realized on the Disposal of Investments in Violation of Restrictions...... 18 -- -- -- -- -------- ------- ------- ------- ------- Total Net Realized Gain (Loss) on Investments... 132 103 -- (14) 107 -------- ------- ------- ------- ------- Net Change in Net Assets from Operations........ $186,814 $37,356 $21,609 $43,845 $11,022 ======== ======= ======= ======= =======
Amounts designated as "--" are $0 or have been rounded to $0. See Notes to Financial Statements. 177 STATEMENTS OF CHANGES IN NET ASSETS STI CLASSIC FUNDS For the Periods Indicated (Amounts in thousands)
Core Bond Fund (a) Florida Tax-Exempt Bond Fund --------------------------------- ---------------------------------- 04/01/05- 11/01/04- 11/01/03- 04/01/05- 06/01/04- 06/01/03- 03/31/06 03/31/05 10/31/04 03/31/06 03/31/05 05/31/04 --------- --------- --------- --------- --------- --------- Operations: Net Investment Income.............. $ 15,669 $ 2,179 $ 1,648 $ 5,652 $ 4,207 $ 5,453 Net Realized Gain (Loss) on Investments Sold................. (2,853) (433) 587 1,124 (145) 3,674 Net Change in Unrealized Appreciation (Depreciation) on Investments...................... (8,256) (2,062) 302 (1,704) 1,892 (13,497) -------- -------- ------- -------- -------- -------- Change in Net Assets from Operations....................... 4,560 (316) 2,537 5,072 5,954 (4,370) -------- -------- ------- -------- -------- -------- Dividends and Distributions to Shareholders: Net Investment Income: I Shares......................... (14,412) (1,571) (1,696) (5,238) (3,792) (4,630) T Shares......................... (1,742) (674) A Shares......................... (13) (5) (6) (169) (150) (170) C Shares......................... (1) -- -- (245) (280) (662) Realized Capital Gains: I Shares......................... (493) (562) (758) (774) (1,824) (3,033) A Shares......................... (1) (2) (6) (26) (84) (106) C Shares......................... -- -- -- (49) (178) (513) -------- -------- ------- -------- -------- -------- Total Dividends and Distributions.................... (16,662) (2,814) (2,466) (6,501) (6,308) (9,114) -------- -------- ------- -------- -------- -------- Change in Net Assets from Capital Transactions..................... 212,581 244,464 22,402 4,654(b) (14,593) 8,552 -------- -------- ------- -------- -------- -------- Change in Net Assets............... 200,479 241,334 22,473 3,225 (14,947) (4,932) -------- -------- ------- -------- -------- -------- Net Assets: Beginning of Period................ 297,772 56,438 33,965 175,976 190,923 195,855 -------- -------- ------- -------- -------- -------- End of Period...................... $498,251 $297,772 $56,438 $179,201 $175,976 $190,923 ======== ======== ======= ======== ======== ======== Undistributed (Distribution in Excess of) Net Investment Income, End of Period............................. $ 36 $ 1 $ (56) $ (11) $ (11) $ 4 ======== ======== ======= ======== ======== ======== Georgia Tax-Exempt Bond Fund --------------------------------- 04/01/05- 06/01/04- 06/01/03- 03/31/06 03/31/05 05/31/04 --------- --------- --------- Operations: Net Investment Income.............. $ 3,215 $ 2,966 $ 3,771 Net Realized Gain (Loss) on Investments Sold................. 133 104 3,872 Net Change in Unrealized Appreciation (Depreciation) on Investments...................... 179 1,978 (10,196) -------- -------- -------- Change in Net Assets from Operations....................... 3,527 5,048 (2,553) -------- -------- -------- Dividends and Distributions to Shareholders: Net Investment Income: I Shares......................... (3,719) (2,528) (3,265) T Shares......................... A Shares......................... (100) (70) (91) C Shares......................... (268) (232) (416) Realized Capital Gains: I Shares......................... (112) (2,127) (694) A Shares......................... (4) (64) (19) C Shares......................... (11) (255) (114) -------- -------- -------- Total Dividends and Distributions.................... (4,214) (5,276) (4,599) -------- -------- -------- Change in Net Assets from Capital Transactions..................... 20,067 (4,144) 3,264 -------- -------- -------- Change in Net Assets............... 19,380 (4,372) (3,888) -------- -------- -------- Net Assets: Beginning of Period................ 109,827 114,199 118,087 -------- -------- -------- End of Period...................... $129,207 $109,827 $114,199 ======== ======== ======== Undistributed (Distribution in Excess of) Net Investment Income, End of Period............................. $ (734) $ 138 $ 2 ======== ======== ========
(a) Effective August 1, 2005, all T Shares of this fund were exchanged for I Shares and T Shares were no longer offered. (See Note 2). (b) Redemption fees have been rounded to $0. Amounts designated as "--" are either $0 or have been rounded to $0. See Notes to Financial Statements. 178 STATEMENTS OF CHANGES IN NET ASSETS (continued) STI CLASSIC FUNDS For the Periods Indicated (Amounts in thousands)
Core Bond Fund (a) Florida Tax-Exempt Bond Fund --------------------------------- --------------------------------- 04/01/05- 11/01/04- 11/01/03- 04/01/05- 06/01/04- 06/01/03- 03/31/06 03/31/05 10/31/04 03/31/06 03/31/05 05/31/04 --------- --------- --------- --------- --------- --------- Capital Transactions: I Shares: Proceeds from Shares Issued............................ $ 389,832 $140,313 $ 40,140 $ 61,889 $ 30,434 $ 83,482 Dividends Reinvested................................... 8,527 1,000 2,082 839 1,312 2,132 Cost of Shares Redeemed................................ (64,112) (18,633) (19,932) (53,510) (38,920) (57,242) --------- -------- -------- -------- -------- -------- Change in Net Assets from I Shares Transactions........ $ 334,247 $122,680 $ 22,290 $ 9,218 $ (7,174) $ 28,372 --------- -------- -------- -------- -------- -------- T Shares(1): Proceeds from Shares Issued............................ $ 39,832 $125,973 $ 1 Dividends Reinvested................................... 1,267 335 -- Cost of Shares Redeemed................................ (163,029) (4,379) -- --------- -------- -------- Change in Net Assets from T Shares Transactions........ $(121,930) $121,929 $ 1 --------- -------- -------- A Shares: Proceeds from Shares Issued............................ $ 298 $ 125 $ 175 $ 733 $ 2,867 $ 3,093 Dividends Reinvested................................... 4 -- -- 132 153 166 Cost of Shares Redeemed................................ (66) (270) (65) (1,894) (2,785) (5,029) --------- -------- -------- -------- -------- -------- Change in Net Assets from A Shares Transactions........ $ 236 $ (145) $ 110 $ (1,029) $ 235 $ (1,770) --------- -------- -------- -------- -------- -------- C Shares(2): Proceeds from Shares Issued............................ $ 28 $ -- $ 1 $ 96 $ 353 $ 6,043 Dividends Reinvested................................... 1 -- -- 225 349 865 Cost of Shares Redeemed................................ (1) -- -- (3,856) (8,356) (24,958) --------- -------- -------- -------- -------- -------- Change in Net Assets from C Shares Transactions........ $ 28 $ -- $ 1 $ (3,535) $ (7,654) $(18,050) --------- -------- -------- -------- -------- -------- Change in Net Assets from Capital Transactions........... $ 212,581 $244,464 $ 22,402 $ 4,654 $(14,593) $ 8,552 ========= ======== ======== ======== ======== ======== Georgia Tax-Exempt Bond Fund --------------------------------- 04/01/05- 06/01/04- 06/01/03- 03/31/06 03/31/05 05/31/04 --------- --------- --------- Capital Transactions: I Shares: Proceeds from Shares Issued............................ $ 39,979 $ 18,386 $ 19,156 Dividends Reinvested................................... 489 917 699 Cost of Shares Redeemed................................ (20,409) (20,690) (14,624) -------- -------- -------- Change in Net Assets from I Shares Transactions........ $ 20,059 $ (1,387) $ 5,231 -------- -------- -------- T Shares(1): Proceeds from Shares Issued............................ Dividends Reinvested................................... Cost of Shares Redeemed................................ Change in Net Assets from T Shares Transactions........ A Shares: Proceeds from Shares Issued............................ $ 2,084 $ 711 $ 1,280 Dividends Reinvested................................... 60 83 56 Cost of Shares Redeemed................................ (1,076) (861) (1,059) -------- -------- -------- Change in Net Assets from A Shares Transactions......... $ 1,068 $ (67) $ 277 -------- -------- -------- C Shares(2): Proceeds from Shares Issued............................ $ 446 $ 49 $ 2,653 Dividends Reinvested................................... 268 411 444 Cost of Shares Redeemed................................ (1,774) (3,150) (5,341) -------- -------- -------- Change in Net Assets from C Shares Transactions........ $ (1,060) $ (2,690) $ (2,244) -------- -------- -------- Change in Net Assets from Capital Transactions........... $ 20,067 $ (4,144) $ 3,264 ======== ======== ========
(a) Effective August 1, 2005, all T Shares of this fund were exchanged for I Shares and T Shares were no longer offered. (See Note 2.) (1) T Shares were offered beginning on October 11, 2004 for the Core Bond Fund. (2) C Shares were offered beginning on October 11, 2004 for the Core Bond Fund. Amounts designated as "--" are $0 or have been rounded to $0. See Notes to Financial Statements. 179 STATEMENTS OF CHANGES IN NET ASSETS (continued) STI CLASSIC FUNDS For the Periods Indicated (Amounts in thousands)
Core Bond Fund (a) Florida Tax-Exempt Bond Fund --------------------------------- --------------------------------- 04/01/05- 11/01/04- 11/01/03- 04/01/05- 06/01/04- 06/01/03- 03/31/06 03/31/05 10/31/04 03/31/06 03/31/05 05/31/04 --------- --------- --------- --------- --------- --------- Share Transactions: I Shares: Issued............................................... 38,549 13,738 3,935 5,626 2,725 7,381 Reinvested........................................... 848 98 205 76 119 188 Redeemed............................................. (6,348) (1,830) (1,963) (4,876) (3,495) (5,085) --------- -------- -------- -------- -------- -------- Change in I Shares Transactions...................... 33,049 12,006 2,177 826 (651) 2,484 --------- -------- -------- -------- -------- -------- T Shares(1): Issued............................................... 3,893 12,354 -- Reinvested........................................... 124 33 -- Redeemed............................................. (15,973) (431) -- --------- -------- -------- Change in T Shares Transactions...................... (11,956) 11,956 -- --------- -------- -------- A Shares: Issued............................................... 29 12 17 67 258 272 Reinvested........................................... -- -- -- 12 14 15 Redeemed............................................. (6) (25) (7) (172) (250) (448) --------- -------- -------- -------- -------- -------- Change in A Shares Transactions...................... 23 (13) 10 (93) 22 (161) --------- -------- -------- -------- -------- -------- C Shares(2): Issued............................................... 3 -- -- 9 34 530 Reinvested........................................... -- -- -- 20 31 76 Redeemed............................................. -- -- -- (351) (756) (2,221) --------- -------- -------- -------- -------- -------- Change in C Shares Transactions...................... 3 -- -- (322) (691) (1,615) --------- -------- -------- -------- -------- -------- Change in Share Transactions........................... 21,119 23,949 2,187 411 (1,320) 708 ========= ======== ======== ======== ======== ======== Georgia Tax-Exempt Bond Fund --------------------------------- 04/01/05- 06/01/04- 06/01/03- 03/31/06 03/31/05 05/31/04 --------- --------- --------- Share Transactions: I Shares: Issued............................................... 3,890 1,763 1,818 Reinvested........................................... 48 89 66 Redeemed............................................. (1,985) (1,981) (1,384) -------- -------- -------- Change in I Shares Transactions....................... 1,953 (129) 500 -------- -------- -------- T Shares(1): Issued............................................... Reinvested........................................... Redeemed............................................. Change in T Shares Transactions...................... A Shares: Issued............................................... 203 68 121 Reinvested........................................... 6 8 5 Redeemed............................................. (105) (83) (100) -------- -------- -------- Change in A Shares Transactions...................... 104 (7) 26 -------- -------- -------- C Shares(2): Issued............................................... 43 7 249 Reinvested........................................... 26 40 42 Redeemed............................................. (173) (306) (511) -------- -------- -------- Change in C Shares Transactions...................... (104) (259) (220) -------- -------- -------- Change in Share Transactions........................... 1,953 (395) 306 ======== ======== ========
(a) Effective August 1, 2005, all T Shares of this fund were exchanged for I Shares and T Shares were no longer offered. (See Note 2.) (1) T Shares were offered beginning on October 11, 2004 for the Core Bond Fund. (2) C Shares were offered beginning on October 11, 2004 for the Core Bond Fund. Amounts designated as "--" are $0 or have been rounded to $0. See Notes to Financial Statements. 180 STATEMENTS OF CHANGES IN NET ASSETS (continued) STI CLASSIC FUNDS For the Periods Indicated (Amounts in thousands)
High Income Fund High Quality Bond Fund (a) ---------------------------------- ---------------------------------- 04/01/05- 06/01/04- 06/01/03- 04/01/05- 06/01/04- 10/27/03*- 03/31/06 03/31/05 05/31/04 03/31/06 03/31/05 05/31/04 --------- --------- --------- --------- --------- ---------- Operations: Net Investment Income................ $ 6,101 $ 7,181 $ 14,340 $ 1,963 $ 2,623 $ 1,023 Net Realized Gain (Loss) on Investments Sold................... (1,302) 5,788 3,353 (451) (936) 197 Net Change in Unrealized Appreciation (Depreciation) on Investments...... 859 (1,932) 931 (574) 2,388 (2,882) --------- -------- -------- -------- -------- -------- Change in Net Assets from Operations......................... 5,658 11,037 18,624 938 4,075 (1,662) --------- -------- -------- -------- -------- -------- Dividends and Distributions to Shareholders: Net Investment Income: I Shares........................... (3,216) (3,412) (7,786) (1,717) (819) (267) T Shares........................... (229) (1,765) (789) A Shares........................... (34) (68) (64) C Shares........................... (2,851) (3,668) (6,492) Realized Capital Gains: I Shares........................... (2,058) (1,488) -- -- (50) -- T Shares........................... -- (134) -- A Shares........................... (22) (23) -- C Shares........................... (2,047) (1,711) -- --------- -------- -------- -------- -------- -------- Total Dividends and Distributions.... (10,228) (10,370) (14,342) (1,946) (2,768) (1,056) --------- -------- -------- -------- -------- -------- Change in Net Assets from Capital Transactions....................... (27,105)(b) (44,278) (21,037) (14,065) (71,614) 137,006 --------- -------- -------- -------- -------- -------- Change in Net Assets................. (31,675) (43,611) (16,755) (15,073) (70,307) 134,288 --------- -------- -------- -------- -------- -------- Net Assets: Beginning of Period.................. 104,904 148,515 165,270 63,981 134,288 -- --------- -------- -------- -------- -------- -------- End of Period........................ $ 73,229 $104,904 $148,515 $ 48,908 $ 63,981 $134,288 ========= ======== ======== ======== ======== ======== Undistributed (Distributions in Excess of) Net Investment Income, End of Period............................... $ 32 $ 32 $ (1) $ 80 $ 62 $ 3 ========= ======== ======== ======== ======== ======== Intermediate Bond Fund (a) --------------------------------- 04/01/05- 11/01/04- 11/01/03- 03/31/06 03/31/05 10/31/04 --------- --------- --------- Operations: Net Investment Income................ $ 2,648 $ 627 $ 1,036 Net Realized Gain (Loss) on Investments Sold................... (617) 23 607 Net Change in Unrealized Appreciation (Depreciation) on Investments...... (1,076) (1,006) (71) ------- ------- ------- Change in Net Assets from Operations......................... 955 (356) 1,572 ------- ------- ------- Dividends and Distributions to Shareholders: Net Investment Income: I Shares........................... (2,568) (573) (1,036) T Shares........................... (96) (41) -- A Shares........................... (2) -- -- C Shares........................... (1) -- -- Realized Capital Gains: I Shares........................... (101) (341) -- T Shares........................... -- (21) -- A Shares........................... -- -- -- C Shares........................... -- -- -- ------- ------- ------- Total Dividends and Distributions.... (2,768) (976) (1,036) ------- ------- ------- Change in Net Assets from Capital Transactions....................... 24,893 20,660 6,626 ------- ------- ------- Change in Net Assets................. 23,080 19,328 7,162 ------- ------- ------- Net Assets: Beginning of Period.................. 55,179 35,851 28,689 ------- ------- ------- End of Period........................ $78,259 $55,179 $35,851 ======= ======= ======= Undistributed (Distributions in Excess of) Net Investment Income, End of Period............................... $ 26 $ 37 $ 18 ======= ======= =======
* Commencement of operations. (a) Effective August 1, 2005, all T Shares of this fund were exchanged for I Shares and T Shares were no longer offered. (See Note 2.) (b) Redemption fees have been rounded to $0. Amounts designated as "--" are either $0 or have been rounded to $0. See Notes to Financial Statements. 181 STATEMENTS OF CHANGES IN NET ASSETS (continued) STI CLASSIC FUNDS For the Periods Indicated (Amounts in thousands)
High Income Fund High Quality Bond Fund (a) --------------------------------- ---------------------------------- 04/01/05- 06/01/04- 06/01/03- 04/01/05- 06/01/04- 10/27/03*- 03/31/06 03/31/05 05/31/04 03/31/06 03/31/05 05/31/04 --------- --------- --------- --------- --------- ---------- Capital Transactions: I Shares: Proceeds from Shares Issued.......................... $ 13,695 $ 25,619 $ 42,398 $ 32,804 $ 30,238 $ 26,414 Dividends Reinvested................................. 2,299 2,643 3,161 873 497 147 Cost of Shares Redeemed.............................. (28,300) (48,374) (77,402) (21,465) (17,507) (674) -------- -------- -------- --------- --------- -------- Change in Net Assets from I Shares Transactions...... $(12,306) $(20,112) $(31,843) $ 12,212 $ 13,228 $ 25,887 -------- -------- -------- --------- --------- -------- T Shares(1): Proceeds from Shares Issued.......................... $ 558 $ 29,454 $116,614 Dividends Reinvested................................. 23 263 82 Cost of Shares Redeemed.............................. (26,858) (114,559) (5,577) --------- --------- -------- Change in Net Assets from T Shares Transactions...... $ (26,277) $ (84,842) $111,119 --------- --------- -------- A Shares(2): Proceeds from Shares Issued.......................... $ 168 $ 938 $ 2,653 Dividends Reinvested................................. 47 77 32 Cost of Shares Redeemed.............................. (527) (1,804) (1,122) -------- -------- -------- Change in Net Assets from A Shares Transactions...... $ (312) $ (789) $ 1,563 -------- -------- -------- C Shares(3): Proceeds from Shares Issued.......................... $ 871 $ 3,557 $ 47,483 Dividends Reinvested................................. 3,596 3,914 4,236 Cost of Shares Redeemed.............................. (18,954) (30,848) (42,475) -------- -------- -------- Change in Net Assets from C Shares Transactions...... $(14,487) $(23,377) $ 9,243 -------- -------- -------- Change in Net Assets from Capital Transactions......... $(27,105) $(44,278) $(21,037) $ (14,065) $ (71,614) $137,006 ======== ======== ======== ========= ========= ======== Intermediate Bond Fund (a) --------------------------------- 04/01/05- 11/01/04- 11/01/03- 03/31/06 03/31/05 10/31/04 --------- --------- --------- Capital Transactions: I Shares: Proceeds from Shares Issued.......................... $35,040 $13,266 $ 7,192 Dividends Reinvested................................. 1,635 712 973 Cost of Shares Redeemed.............................. (4,560) (613) (1,542) ------- ------- ------- Change in Net Assets from I Shares Transactions...... $32,115 $13,365 $ 6,623 ------- ------- ------- T Shares(1): Proceeds from Shares Issued.......................... $ 2,156 $ 7,295 $ 1 Dividends Reinvested................................. 52 -- -- Cost of Shares Redeemed.............................. (9,504) -- -- ------- ------- ------- Change in Net Assets from T Shares Transactions...... $(7,296) $ 7,295 $ 1 ------- ------- ------- A Shares(2): Proceeds from Shares Issued.......................... $ 207 $ -- $ 1 Dividends Reinvested................................. 3 -- -- Cost of Shares Redeemed.............................. (205) -- -- ------- ------- ------- Change in Net Assets from A Shares Transactions...... $ 5 $ -- $ 1 ------- ------- ------- C Shares(3): Proceeds from Shares Issued.......................... $ 69 $ -- $ 1 Dividends Reinvested................................. 1 -- -- Cost of Shares Redeemed.............................. (1) -- -- ------- ------- ------- Change in Net Assets from C Shares Transactions...... $ 69 $ -- $ 1 ------- ------- ------- Change in Net Assets from Capital Transactions......... $24,893 $20,660 $ 6,626 ======= ======= =======
* Commencement of operations. (a) Effective August 1, 2005, all T Shares of this fund were exchanged for I Shares and T Shares were no longer offered. (See Note 2.) (1) T shares were offered beginning on November 13, 2003 and October 11, 2004 for the High Quality Bond Fund and the Intermediate Bond Fund, respectively. (2) A Shares were offered beginning on October 11, 2004 for the Intermediate Bond Fund. (3) C Shares were offered beginning on October 11, 2004 for the Intermediate Bond Fund. Amounts designated as "--" are $0 or have been rounded to $0. See Notes to Financial Statements. 182 STATEMENTS OF CHANGES IN NET ASSETS (continued) STI CLASSIC FUNDS For the Periods Indicated (Amounts in thousands)
High Income Fund High Quality Bond Fund (a) --------------------------------- ---------------------------------- 04/01/05- 06/01/04- 06/01/03- 04/01/05- 06/01/04- 10/27/03*- 03/31/06 03/31/05 05/31/04 03/31/06 03/31/05 05/31/04 --------- --------- --------- --------- --------- ---------- Share Transactions: I Shares: Issued.............................................. 1,892 3,464 5,657 3,243 3,038 2,643 Reinvested.......................................... 323 351 424 89 50 15 Redeemed............................................ (3,894) (6,524) (10,511) (2,176) (1,769) (67) -------- -------- -------- --------- --------- --------- Change in I Shares Transactions..................... (1,679) (2,709) (4,430) 1,156 1,319 2,591 -------- -------- -------- --------- --------- --------- T Shares(1): Issued.............................................. 56 2,964 11,601 Reinvested.......................................... 2 26 8 Redeemed............................................ (2,640) (11,458) (559) --------- --------- --------- Change in T Shares Transactions..................... (2,582) (8,468) 11,050 --------- --------- --------- A Shares(2): Issued.............................................. 23 124 350 Reinvested.......................................... 7 10 4 Redeemed............................................ (72) (238) (150) -------- -------- -------- Change in A Shares Transactions..................... (42) (104) 204 -------- -------- -------- C Shares(3): Issued.............................................. 119 515 6,402 Reinvested.......................................... 505 519 567 Redeemed............................................ (2,609) (4,127) (5,714) -------- -------- -------- Change in C Shares Transactions..................... (1,985) (3,093) 1,255 -------- -------- -------- Change in Share Transactions.......................... (3,706) (5,906) (2,971) (1,426) (7,149) 13,641 ======== ======== ======== ========= ========= ========= Intermediate Bond Fund (a) ---------------------------------- 04/01/05- 11/01/04- 11/01/03- 03/31/06 03/31/05 10/31/04 ---------- --------- --------- Share Transactions: I Shares: Issued.............................................. 3,472 1,289 710 Reinvested.......................................... 163 69 95 Redeemed............................................ (453) (59) (151) ---------- ------- ------- Change in I Shares Transactions..................... 3,182 1,299 654 ---------- ------- ------- T Shares(1): Issued.............................................. 212 714 -- Reinvested.......................................... 5 -- -- Redeemed............................................ (931) -- -- ---------- ------- ------- Change in T Shares Transactions..................... (714) 714 -- ---------- ------- ------- A Shares(2): Issued.............................................. 21 -- -- Reinvested.......................................... -- -- -- Redeemed............................................ (21) -- -- ---------- ------- ------- Change in A Shares Transactions..................... -- -- -- ---------- ------- ------- C Shares(3): Issued.............................................. 7 -- -- Reinvested.......................................... -- -- -- Redeemed............................................ -- -- -- ---------- ------- ------- Change in C Shares Transactions..................... 7 -- -- ---------- ------- ------- Change in Share Transactions.......................... 2,475 2,013 654 ========== ======= =======
* Commencement of operations. (a) Effective August 1, 2005, all T Shares of this fund were exchanged for I Shares and T Shares were no longer offered. (See Note 2.) (1) T shares were offered beginning on November 13, 2003 and October 11, 2004 for the High Quality Bond Fund and the Intermediate Bond Fund, respectively. (2) A Shares were offered beginning on October 11, 2004 for the Intermediate Bond Fund. (3) C Shares were offered beginning on October 11, 2004 for the Intermediate Bond Fund. Amounts designated as "--" are $0 or have been rounded to $0. See Notes to Financial Statements. 183 STATEMENTS OF CHANGES IN NET ASSETS (continued) STI CLASSIC FUNDS For the Periods Indicated (Amounts in thousands)
Investment Grade Investment Grade Bond Fund Tax-Exempt Bond Fund --------------------------------- ---------------------------------- 04/01/05- 06/01/04- 06/01/03- 04/01/05- 06/01/04- 06/01/03- 03/31/06 03/31/05 05/31/04 03/31/06 03/31/05 05/31/04 --------- --------- --------- --------- --------- --------- Operations: Net Investment Income............. $ 22,409 $ 16,395 $ 24,241 $ 8,969 $ 5,039 $ 5,375 Net Realized Gain (Loss) on Investments Sold................ 7,288 2,253 16,393 1,313 4,146 1,822 Net Change in Unrealized Appreciation (Depreciation) on Investments..................... (12,042) 9,268 (60,476) (1,585) (262) (8,837) --------- -------- --------- -------- -------- -------- Change in Net Assets from Operations...................... 17,655 27,916 (19,842) 8,697 8,923 (1,640) --------- -------- --------- -------- -------- -------- Dividends and Distributions to Shareholders: Net Investment Income: I Shares........................ (21,449) (14,908) (24,510) (8,283) (4,663) (4,556) T Shares........................ A Shares........................ (800) (657) (1,058) (444) (311) (394) C Shares........................ (470) (405) (857) (242) (236) (418) Realized Capital Gains: I Shares........................ -- -- -- (1,977) (3,552) (4,156) A Shares........................ -- -- -- (118) (280) (418) C Shares........................ -- -- -- (80) (267) (595) --------- -------- --------- -------- -------- -------- Total Dividends and Distributions................... (22,719) (15,970) (26,425) (11,144) (9,309) (10,537) --------- -------- --------- -------- -------- -------- Change in Net Assets from Capital Transactions.................... (125,727) (1,276) (213,824) 37,315(b) 45,649 19,573 --------- -------- --------- -------- -------- -------- Change in Net Assets.............. (130,791) 10,670 (260,091) 34,868 45,263 7,396 --------- -------- --------- -------- -------- -------- Net Assets: Beginning of Period............... 644,605 633,935 894,026 292,584 247,321 239,925 --------- -------- --------- -------- -------- -------- End of Period..................... $ 513,814 $644,605 $ 633,935 $327,452 $292,584 $247,321 ========= ======== ========= ======== ======== ======== Undistributed (Distribution in Excess of) Net Investment Income, End of Period..................... $ 812 $ 881 $ 6 $ (162) $ (162) $ 9 ========= ======== ========= ======== ======== ======== Limited Duration Fund (a) --------------------------------- 04/01/05- 11/01/04- 11/01/03- 03/31/06 03/31/05 10/31/04 --------- --------- --------- Operations: Net Investment Income............. $ 2,165 $ 968 $ 1,653 Net Realized Gain (Loss) on Investments Sold................ 4 (17) (6) Net Change in Unrealized Appreciation (Depreciation) on Investments..................... (13) 37 (31) -------- -------- -------- Change in Net Assets from Operations...................... 2,156 988 1,616 -------- -------- -------- Dividends and Distributions to Shareholders: Net Investment Income: I Shares........................ (2,219) (903) (1,654) T Shares........................ (1) -- -- A Shares........................ C Shares........................ -- -- -- Realized Capital Gains: I Shares........................ (1) (3) -- A Shares........................ C Shares........................ -- -- -- -------- -------- -------- Total Dividends and Distributions................... (2,221) (906) (1,654) -------- -------- -------- Change in Net Assets from Capital Transactions.................... (24,365) (46,026) (17,214) -------- -------- -------- Change in Net Assets.............. (24,430) (45,944) (17,252) -------- -------- -------- Net Assets: Beginning of Period............... 83,317 129,261 146,513 -------- -------- -------- End of Period..................... $ 58,887 $ 83,317 $129,261 ======== ======== ======== Undistributed (Distribution in Excess of) Net Investment Income, End of Period..................... $ -- $ 66 $ 11 ======== ======== ========
(a) Effective August 1, 2005, all T Shares and C Shares of this fund were exchanged for I Shares and T Shares and C Shares were no longer offered. (See Note 2.) (b) Redemption fees have been rounded to $0. Amounts designated as "--" are either $0 or have been rounded to $0. See Notes to Financial Statements. 184 STATEMENTS OF CHANGES IN NET ASSETS (continued) STI CLASSIC FUNDS For the Periods Indicated (Amounts in thousands)
Investment Grade Investment Grade Bond Fund Tax-Exempt Bond Fund --------------------------------- --------------------------------- 04/01/05- 06/01/04- 06/01/03- 04/01/05- 06/01/04- 06/01/03- 03/31/06 03/31/05 05/31/04 03/31/06 03/31/05 05/31/04 --------- --------- --------- --------- --------- --------- Capital Transactions: I Shares: Proceeds from Shares Issued........................... $ 121,335 $ 78,297 $ 131,151 $126,289 $ 92,986 $ 83,827 Proceeds from Shares Issued in Acquisition............ -- 96,136 -- Dividends Reinvested.................................. 9,103 6,490 10,827 2,449 2,189 2,327 Cost of Shares Redeemed............................... (248,679) (167,099) (342,709) (84,976) (40,368) (56,635) --------- --------- --------- -------- -------- -------- Change in Net Assets from I Shares Transactions....... $(118,241) $ 13,824 $(200,731) $ 43,762 $ 54,807 $ 29,519 --------- --------- --------- -------- -------- -------- T Shares(1): Proceeds from Shares Issued........................... Cost of Shares Redeemed............................... Change in Net Assets from T Shares Transactions....... A Shares: Proceeds from Shares Issued........................... $ 3,455 $ 2,965 $ 11,284 $ 3,247 $ 1,595 $ 3,424 Dividends Reinvested.................................. 786 613 943 468 475 654 Cost of Shares Redeemed............................... (7,512) (11,805) (13,838) (4,860) (3,755) (5,748) --------- --------- --------- -------- -------- -------- Change in Net Assets from A Shares Transactions....... $ (3,271) $ (8,227) $ (1,611) $ (1,145) $ (1,685) $ (1,670) --------- --------- --------- -------- -------- -------- C Shares(2): Proceeds from Shares Issued........................... $ 798 $ 724 $ 6,557 $ 106 $ 284 $ 4,230 Dividends Reinvested.................................. 455 370 739 283 435 871 Cost of Shares Redeemed............................... (5,468) (7,967) (18,778) (5,691) (8,192) (13,377) --------- --------- --------- -------- -------- -------- Change in Net Assets from C Shares Transactions....... $ (4,215) $ (6,873) $ (11,482) $ (5,302) $ (7,473) $ (8,276) --------- --------- --------- -------- -------- -------- Change in Net Assets from Capital Transactions.......... $(125,727) $ (1,276) $(213,824) $ 37,315 $ 45,649 $ 19,573 ========= ========= ========= ======== ======== ======== Limited Duration Fund (a) --------------------------------- 04/01/05- 11/01/04- 11/01/03- 03/31/06 03/31/05 10/31/04 --------- --------- --------- Capital Transactions: I Shares: Proceeds from Shares Issued........................... $ 31,566 $ 8,164 $ 157,998 Proceeds from Shares Issued in Acquisition............ Dividends Reinvested.................................. 2,057 762 1,533 Cost of Shares Redeemed............................... (57,986) (54,952) (176,747) -------- -------- --------- Change in Net Assets from I Shares Transactions....... $(24,363) $(46,026) $ (17,216) -------- -------- --------- T Shares(1): Proceeds from Shares Issued........................... $ 220 $ -- $ 1 Cost of Shares Redeemed............................... (221) -- -- -------- -------- --------- Change in Net Assets from T Shares Transactions....... $ (1) $ -- $ 1 -------- -------- --------- A Shares: Proceeds from Shares Issued........................... Dividends Reinvested.................................. Cost of Shares Redeemed............................... Change in Net Assets from A Shares Transactions....... C Shares(2): Proceeds from Shares Issued........................... $ 64 $ -- $ 1 Dividends Reinvested.................................. -- -- -- Cost of Shares Redeemed............................... (65) -- -- -------- -------- --------- Change in Net Assets from C Shares Transactions....... $ (1) $ -- $ 1 -------- -------- --------- Change in Net Assets from Capital Transactions.......... $(24,365) $(46,026) $ (17,214) ======== ======== =========
* Commencement of operations. (a) Effective August 1, 2005, all T Shares and C Shares of this fund were exchanged for I Shares and T Shares and C Shares were no longer offered. (See Note 2.) (1) T Shares were offered beginning on October 11, 2004 for the Limited Duration Fund. (2) C Shares were offered beginning on October 11, 2004 for the Limited Duration Fund. Amounts designated as "--" are $0 or have been rounded to $0. See Notes to Financial Statements. 185 STATEMENTS OF CHANGES IN NET ASSETS (continued) STI CLASSIC FUNDS For the Periods Indicated (Amounts in thousands)
Investment Grade Investment Grade Bond Fund Tax-Exempt Bond Fund --------------------------------- --------------------------------- 04/01/05- 06/01/04- 06/01/03- 04/01/05- 06/01/04- 06/01/03- 03/31/06 03/31/05 05/31/04 03/31/06 03/31/05 05/31/04 --------- --------- --------- --------- --------- --------- Share Transactions: I Shares: Issued................................................ 11,501 7,408 12,373 10,965 8,015 7,142 Issued in Acquisition................................. -- 9,140 -- Reinvested............................................ 865 617 1,025 213 189 200 Redeemed.............................................. (23,593) (15,871) (32,348) (7,396) (3,471) (4,843) --------- --------- --------- -------- ------- ------- Change in I Shares Transactions....................... (11,227) 1,294 (18,950) 3,782 4,733 2,499 --------- --------- --------- -------- ------- ------- T Shares(1): Issued................................................ Redeemed.............................................. Change in T Shares Transactions....................... A Shares: Issued................................................ 328 281 1,067 281 136 290 Reinvested............................................ 75 58 89 41 41 56 Redeemed.............................................. (713) (1,117) (1,310) (422) (322) (489) --------- --------- --------- -------- ------- ------- Change in A Shares Transactions....................... (310) (778) (154) (100) (145) (143) --------- --------- --------- -------- ------- ------- C Shares(2): Issued................................................ 76 69 615 9 24 357 Reinvested............................................ 43 35 70 25 38 75 Redeemed.............................................. (518) (758) (1,778) (494) (706) (1,145) --------- --------- --------- -------- ------- ------- Change in C Shares Transactions....................... (399) (654) (1,093) (460) (644) (713) --------- --------- --------- -------- ------- ------- Change in Share Transactions............................ (11,936) (138) (20,197) 3,222 3,944 1,643 ========= ========= ========= ======== ======= ======= Limited Duration Fund (a) --------------------------------- 04/01/05- 11/01/04- 11/01/03- 03/31/06 03/31/05 10/31/04 --------- --------- --------- Share Transactions: I Shares: Issued................................................ 3,161 819 15,801 Issued in Acquisition................................. Reinvested............................................ 206 76 166 Redeemed.............................................. (5,809) (5,506) (17,691) -------- -------- -------- Change in I Shares Transactions....................... (2,442) (4,611) (1,724) -------- -------- -------- T Shares(1): Issued................................................ 22 -- -- Redeemed.............................................. (22) -- -- -------- -------- -------- Change in T Shares Transactions....................... -- -- -- -------- -------- -------- A Shares: Issued................................................ Reinvested............................................ Redeemed.............................................. Change in A Shares Transactions....................... C Shares(2): Issued................................................ 6 -- -- Reinvested............................................ -- -- -- Redeemed.............................................. (6) -- -- -------- -------- -------- Change in C Shares Transactions....................... -- -- -- -------- -------- -------- Change in Share Transactions............................ (2,442) (4,611) (1,724) ======== ======== ========
* Commencement of operations. (a) Effective August 1, 2005, all T Shares and C Shares of this fund were exchanged for I Shares and T Shares and C Shares were no longer offered. (See Note 2.) (1) T Shares were offered beginning on October 11, 2004 for the Limited Duration Fund. (2) C Shares were offered beginning on October 11, 2004 for the Limited Duration Fund. Amounts designated as "--" are $0 or have been rounded to $0. See Notes to Financial Statements. 186 STATEMENTS OF CHANGES IN NET ASSETS (continued) STI CLASSIC FUNDS For the Periods Indicated (Amounts in thousands)
Limited-Term Federal Maryland Mortgage Securities Fund Municipal Bond Fund ----------------------------------- ---------------------------------- 04/01/05- 06/01/04- 06/01/03- 04/01/05- 06/01/04- 06/01/03- 03/31/06 03/31/05 05/31/04 03/31/06 03/31/05 05/31/04 --------- --------- --------- --------- --------- --------- Operations: Net Investment Income.......... $ 13,070 $ 14,576 $ 12,288 $ 1,462 $ 1,215 $ 1,619 Net Realized Gain (Loss) on Investments Sold............. (2,545) (3,135) (562) 298 316 500 Net Change in Unrealized Appreciation (Depreciation) on Investments............... (2,631) 73 (17,136) (442) 120 (3,073) --------- -------- -------- ------- ------- -------- Change in Net Assets from Operations................... 7,894 11,514 (5,410) 1,318 1,651 (954) --------- -------- -------- ------- ------- -------- Dividends and Distributions to Shareholders: Net Investment Income: I Shares..................... (14,726) (13,707) (12,201) (1,142) (900) (996) A Shares..................... (242) (208) (300) (10) C Shares..................... (872) (1,244) (2,707) (310) (338) (620) Realized Capital Gains: I Shares..................... -- -- -- (268) (262) (546) A Shares..................... -- -- -- (4) C Shares..................... -- -- -- (94) (123) (459) --------- -------- -------- ------- ------- -------- Total Dividends and Distributions................ (15,840) (15,159) (15,208) (1,828) (1,623) (2,621) --------- -------- -------- ------- ------- -------- Change in Net Assets from Capital Transactions......... (45,874)(a) (62,975) 34,962 (1,199) (4,417) (7,850) --------- -------- -------- ------- ------- -------- Change in Net Assets........... (53,820) (66,620) 14,344 (1,709) (4,389) (11,425) --------- -------- -------- ------- ------- -------- Net Assets: Beginning of Period............ 448,321 514,941 500,597 44,243 48,632 60,057 --------- -------- -------- ------- ------- -------- End of Period.................. $ 394,501 $448,321 $514,941 $42,534 $44,243 $ 48,632 ========= ======== ======== ======= ======= ======== Undistributed (Distribution in Excess of) Net Investment Income, End of Period.......... $ (1,019) $ 1,404 $ 8 $ (42) $ (40) $ (17) ========= ======== ======== ======= ======= ======== North Carolina Tax-Exempt Bond Fund ----------------------------------- 04/01/05- 06/01/04- 01/08/04*- 03/31/06 03/31/05 05/31/04 --------- --------- ---------- Operations: Net Investment Income.......... $ 1,288 $ 938 $ 251 Net Realized Gain (Loss) on Investments Sold............. (35) (12) -- Net Change in Unrealized Appreciation (Depreciation) on Investments............... 166 633 (864) ------- ------- ------- Change in Net Assets from Operations................... 1,419 1,559 (613) ------- ------- ------- Dividends and Distributions to Shareholders: Net Investment Income: I Shares..................... (1,288) (1,006) (251) A Shares..................... -- -- -- C Shares..................... -- -- -- Realized Capital Gains: I Shares..................... (4) (124) -- A Shares..................... -- -- -- C Shares..................... -- -- -- ------- ------- ------- Total Dividends and Distributions................ (1,292) (1,130) (251) ------- ------- ------- Change in Net Assets from Capital Transactions......... 463 7,612 33,621 ------- ------- ------- Change in Net Assets........... 590 8,041 32,757 ------- ------- ------- Net Assets: Beginning of Period............ 40,798 32,757 -- ------- ------- ------- End of Period.................. $41,388 $40,798 $32,757 ======= ======= ======= Undistributed (Distribution in Excess of) Net Investment Income, End of Period.......... $ (64) $ (64) $ -- ======= ======= =======
* Commencement of operations. (a) Includes redemption fees collected of $1. Amounts designated as "--" are either $0 or have been rounded to $0. See Notes to Financial Statements. 187 STATEMENTS OF CHANGES IN NET ASSETS (continued) STI CLASSIC FUNDS For the Periods Indicated (Amounts in thousands)
Limited-Term Federal Maryland Mortgage Securities Fund Municipal Bond Fund --------------------------------- --------------------------------- 04/01/05- 06/01/04- 06/01/03- 04/01/05- 06/01/04- 06/01/03- 03/31/06 03/31/05 05/31/04 03/31/06 03/31/05 05/31/04 --------- --------- --------- --------- --------- --------- Capital Transactions: I Shares: Proceeds from Shares Issued........................... $ 147,011 $ 109,729 $ 270,058 $ 6,853 $ 6,296 $ 8,075 Dividends Reinvested.................................. 4,004 4,321 4,093 350 277 489 Cost of Shares Redeemed............................... (181,240) (138,526) (144,748) (5,155) (5,216) (7,414) --------- --------- --------- ------- ------- -------- Change in Net Assets from I Shares Transactions....... $ (30,225) $ (24,476) $ 129,403 $ 2,048 $ 1,357 $ 1,150 --------- --------- --------- ------- ------- -------- A Shares(1): Proceeds from Shares Issued........................... $ 3,709 $ 3,395 $ 8,182 $ 697 Dividends Reinvested.................................. 190 181 279 14 Cost of Shares Redeemed............................... (5,233) (7,196) (12,123) (197) --------- --------- --------- ------- Change in Net Assets from A Shares Transactions....... $ (1,334) $ (3,620) $ (3,662) $ 514 --------- --------- --------- ------- C Shares(2): Proceeds from Shares Issued........................... $ 195 $ 525 $ 23,896 $ 4 $ 1,138 $ 4,056 Dividends Reinvested.................................. 802 1,065 2,217 341 402 932 Cost of Shares Redeemed............................... (15,312) (36,469) (116,892) (4,106) (7,314) (13,988) --------- --------- --------- ------- ------- -------- Change in Net Assets from C Shares Transactions....... $ (14,315) $ (34,879) $ (90,779) $(3,761) $(5,774) $ (9,000) --------- --------- --------- ------- ------- -------- Change in Net Assets from Capital Transactions.......... $ (45,874) $ (62,975) $ 34,962 $(1,199) $(4,417) $ (7,850) ========= ========= ========= ======= ======= ======== North Carolina Tax-Exempt Bond Fund ---------------------------------- 04/01/05- 06/01/04- 01/08/04*- 03/31/06 03/31/05 05/31/04 --------- --------- ---------- Capital Transactions: I Shares: Proceeds from Shares Issued........................... $ 8,474 $11,202 $35,213 Dividends Reinvested.................................. 16 124 -- Cost of Shares Redeemed............................... (8,140) (3,714) (1,592) ------- ------- ------- Change in Net Assets from I Shares Transactions....... $ 350 $ 7,612 $33,621 ------- ------- ------- A Shares(1): Proceeds from Shares Issued........................... $ 111 $ -- Dividends Reinvested.................................. -- -- Cost of Shares Redeemed............................... -- -- ------- ------- Change in Net Assets from A Shares Transactions....... $ 111 $ -- ------- ------- C Shares(2): Proceeds from Shares Issued........................... $ 2 $ -- Dividends Reinvested.................................. -- -- Cost of Shares Redeemed............................... -- -- ------- ------- Change in Net Assets from C Shares Transactions....... $ 2 $ -- ------- ------- Change in Net Assets from Capital Transactions.......... $ 463 $ 7,612 $33,621 ======= ======= =======
* Commencement of operations. (1) A Shares were offered beginning on April 13, 2005 and March 21, 2005 for the Maryland Municipal Bond Fund and the North Carolina Tax-Exempt Bond Fund, respectively. (2) C Shares were offered beginning on March 21, 2005 for the North Carolina Tax-Exempt Bond Fund. Amounts designated as "--" are $0 or have been rounded to $0. See Notes to Financial Statements. 188 STATEMENTS OF CHANGES IN NET ASSETS (continued) STI CLASSIC FUNDS For the Periods Indicated (Amounts in thousands)
Limited-Term Federal Maryland Mortgage Securities Fund Municipal Bond Fund --------------------------------- --------------------------------- 04/01/05- 06/01/04- 06/01/03- 04/01/05- 06/01/04- 06/01/03- 03/31/06 03/31/05 05/31/04 03/31/06 03/31/05 05/31/04 --------- --------- --------- --------- --------- --------- Share Transactions: I Shares: Issued................................................ 14,687 10,801 26,070 666 614 766 Reinvested............................................ 399 423 397 34 27 47 Redeemed.............................................. (18,032) (13,622) (13,982) (499) (514) (705) --------- --------- --------- --------- ------- ------- Change in I Shares Transactions....................... (2,946) (2,398) 12,485 201 127 108 --------- --------- --------- --------- ------- ------- A Shares(1): Issued................................................ 370 328 790 67 Reinvested............................................ 19 18 27 1 Redeemed.............................................. (524) (699) (1,176) (19) --------- --------- --------- --------- Change in A Shares Transactions....................... (135) (353) (359) 49 --------- --------- --------- --------- C Shares(2): Issued................................................ 19 45 2,282 -- 112 375 Reinvested............................................ 80 104 215 33 39 88 Redeemed.............................................. (1,524) (3,565) (11,317) (398) (705) (1,323) --------- --------- --------- --------- ------- ------- Change in C Shares Transactions....................... (1,425) (3,416) (8,820) (365) (554) (860) --------- --------- --------- --------- ------- ------- Change in Share Transactions............................ (4,506) (6,167) 3,306 (115) (427) (752) ========= ========= ========= ========= ======= ======= North Carolina Tax-Exempt Bond Fund ---------------------------------- 04/01/05- 06/01/04- 01/08/04*- 03/31/06 03/31/05 05/31/04 --------- --------- ---------- Share Transactions: I Shares: Issued................................................ 849 1,134 3,517 Reinvested............................................ 2 12 -- Redeemed.............................................. (816) (372) (159) ------- ------ ------- Change in I Shares Transactions....................... 35 774 3,358 ------- ------ ------- A Shares(1): Issued................................................ 11 -- Reinvested............................................ -- -- Redeemed.............................................. -- -- ------- ------ Change in A Shares Transactions....................... 11 -- ------- ------ C Shares(2): Issued................................................ -- -- Reinvested............................................ -- -- Redeemed.............................................. -- -- ------- ------ Change in C Shares Transactions....................... -- -- ------- ------ Change in Share Transactions............................ 46 774 3,358 ======= ====== =======
* Commencement of operations. (1) A Shares were offered beginning on April 13, 2005 and March 21, 2005 for the Maryland Municipal Bond Fund and the North Carolina Tax-Exempt Bond Fund, respectively. (2) C Shares were offered beginning on March 21, 2005 for the North Carolina Tax-Exempt Bond Fund. Amounts designated as "--" are $0 or have been rounded to $0. See Notes to Financial Statements. 189 STATEMENTS OF CHANGES IN NET ASSETS (continued) STI CLASSIC FUNDS For the Periods Indicated (Amounts in thousands)
Seix Floating Rate High Income Fund Seix High Yield Fund (a) Short-Term Bond Fund ------------- -------------------------------------- ---------------------------------- 03/02/06*- 04/01/05- 11/01/04- 11/01/03- 04/01/05- 06/01/04- 06/01/03- 3/31/2006 03/31/06 03/31/05 10/31/04 03/31/06 03/31/05 05/31/04 ------------- ---------- ---------- ---------- --------- --------- --------- Operations: Net Investment Income........... $ 434 $ 79,295 $ 39,893 $ 92,194 $ 9,838 $ 6,194 $ 7,861 Net Realized Gain (Loss) on Investments Sold.............. (19) (10,259) 17,216 19,041 531 (168) 1,780 Net Change in Unrealized Appreciation (Depreciation) on Investments................... (329) (1,686) (62,779) 25,392 (947) (3,407) (8,220) -------- ---------- ---------- ---------- -------- -------- -------- Change in Net Assets from Operations.................... 86 67,350 (5,670) 136,627 9,422 2,619 1,421 -------- ---------- ---------- ---------- -------- -------- -------- Dividends and Distributions to Shareholders: Net Investment Income: I Shares...................... (438) (77,610) (39,447) (90,978) (9,580) (5,829) (7,288) T Shares...................... (62) (61) (5) A Shares...................... (1,414) (363) (836) (186) (116) (147) C Shares...................... (256) (45) -- (306) (303) (569) Realized Capital Gains: I Shares...................... -- (16,562) (19,147) (2,278) -- -- -- T Shares...................... -- (29) -- A Shares...................... (536) (192) (31) -- -- -- C Shares...................... (76) (17) -- -- -- -- -------- ---------- ---------- ---------- -------- -------- -------- Total Dividends and Distributions................. (438) (96,516) (59,301) (94,128) (10,072) (6,248) (8,004) -------- ---------- ---------- ---------- -------- -------- -------- Change in Net Assets from Capital Transactions.......... 106,757 (118,674)(b) (234,489) 591,600 (12,846)(c) 1,432 (22,822) -------- ---------- ---------- ---------- -------- -------- -------- Change in Net Assets............ 106,405 (147,840) (299,460) 634,099 (13,496) (2,197) (29,405) -------- ---------- ---------- ---------- -------- -------- -------- Net Assets: Beginning of Period............. -- 1,407,624 1,707,084 1,072,985 309,399 311,596 341,001 -------- ---------- ---------- ---------- -------- -------- -------- End of Period................... $106,405 $1,259,784 $1,407,624 $1,707,084 $295,903 $309,399 $311,596 ======== ========== ========== ========== ======== ======== ======== Undistributed (Distribution in Excess of) Net Investment Income, End of Period........... $ 17 $ 55 $ 33 $ 33 $ 136 $ 165 $ 10 ======== ========== ========== ========== ======== ======== ========
* Commencement of operations. (a) Effective August 1, 2005, all T Shares of this fund were exchanged for I Shares and T Shares were no longer offered. (See Note 2.) (b) Includes redemption fees collected of $2. (c) Redemption fees have been rounded to $0. Amounts designated as "--" are either $0 or have been rounded to $0. See Notes to Financial Statements. 190 STATEMENTS OF CHANGES IN NET ASSETS (continued) STI CLASSIC FUNDS For the Periods Indicated (Amounts in thousands)
Seix Floating Rate High Income Fund Seix High Yield Fund (a) Short-Term Bond Fund ------------- --------------------------------- --------------------------------- 03/02/06*- 04/01/05- 11/01/04- 11/01/03- 04/01/05- 06/01/04- 06/01/03- 03/31/06 03/31/06 03/31/05 10/31/04 03/31/06 03/31/05 05/31/04 ------------- --------- --------- --------- --------- --------- --------- Capital Transactions: I Shares: Proceeds from Shares Issued............. $108,820 $ 184,613 $ 144,588 $ 868,270 $ 96,780 $ 95,870 $ 112,609 Proceeds from Shares Issued in Acquisition........................... 12,374 -- -- Dividends Reinvested.................... 437 87,188 49,289 74,278 2,720 1,755 2,305 Cost of Shares Redeemed................. (2,500) (417,753) (427,085) (353,054) (118,491) (87,950) (129,543) -------- --------- --------- --------- --------- -------- --------- Change in Net Assets from I Shares Transactions.......................... $106,757 $(145,952) $(233,208) $ 589,494 $ (6,617) $ 9,675 $ (14,629) -------- --------- --------- --------- --------- -------- --------- T Shares(1): Proceeds from Shares Issued............. $ 2,840 $ 1,179 $ 1,798 Dividends Reinvested.................... 12 20 -- Cost of Shares Redeemed................. (5,727) (91) (31) --------- --------- --------- Change in Net Assets from T Shares Transactions.......................... $ (2,875) $ 1,108 $ 1,767 --------- --------- --------- A Shares: Proceeds from Shares Issued............. $ 37,266 $ 1,729 $ 3,288 $ 2,668 $ 2,913 $ 5,818 Dividends Reinvested.................... 1,712 404 559 164 87 115 Cost of Shares Redeemed................. (11,512) (7,897) (3,509) (3,533) (3,030) (5,618) --------- --------- --------- --------- -------- --------- Change in Net Assets from A Shares Transactions.......................... $ 27,466 $ (5,764) $ 338 $ (701) $ (30) $ 315 --------- --------- --------- --------- -------- --------- C Shares(2): Proceeds from Shares Issued............. $ 2,973 $ 3,438 $ 1 $ 435 $ 929 $ 8,024 Dividends Reinvested.................... 97 7 -- 238 240 449 Cost of Shares Redeemed................. (383) (70) -- (6,201) (9,382) (16,981) --------- --------- --------- --------- -------- --------- Change in Net Assets from C Shares Transactions.......................... $ 2,687 $ 3,375 $ 1 $ (5,528) $ (8,213) $ (8,508) --------- --------- --------- --------- -------- --------- Change in Net Assets from Capital Transactions............................. $106,757 $(118,674) $(234,489) $ 591,600 $ (12,846) $ 1,432 $ (22,822) ======== ========= ========= ========= ========= ======== =========
* Commencement of operations. (a)Effective August 1, 2005, all T Shares of this fund were exchanged for I Shares and T Shares were no longer offered. (See Note 2.) (1)T shares were offered beginning on October 11, 2004 for the Seix High Yield Fund. (2)C shares were offered beginning on October 11, 2004 for the Seix High Yield Fund. Amounts designated as "--" are $0 or have been rounded to $0. See Notes to Financial Statements. 191 STATEMENTS OF CHANGES IN NET ASSETS (continued) STI CLASSIC FUNDS For the Periods Indicated (Amounts in thousands)
Seix Floating Rate High Income Fund Seix High Yield Fund (a) Short-Term Bond Fund ------------- --------------------------------- --------------------------------- 03/02/06*- 04/01/05- 11/01/04- 11/01/03- 04/01/05- 06/01/04- 06/01/03- 03/31/06 03/31/06 03/31/05 10/31/04 03/31/06 03/31/05 05/31/04 ------------- --------- --------- --------- --------- --------- --------- Share Transactions: I Shares: Issued................................ 10,885 16,930 12,773 77,562 9,961 9,702 11,306 Issued in Acquisition................. 1,281 -- -- Reinvested............................ 44 8,029 4,356 6,653 280 179 232 Redeemed.............................. (251) (38,273) (37,787) (31,699) (12,201) (8,895) (13,012) -------- --------- --------- --------- --------- -------- -------- Change in I Shares Transactions....... 10,678 (13,314) (20,658) 52,516 (679) 986 (1,474) -------- --------- --------- --------- --------- -------- -------- T Shares(1): Issued................................ 258 104 159 Reinvested............................ 1 2 -- Redeemed.............................. (513) (8) (3) --------- --------- --------- Change in T Shares Transactions....... (254) 98 156 --------- --------- --------- A Shares: Issued................................ 3,495 157 303 273 296 583 Reinvested............................ 162 36 51 17 9 11 Redeemed.............................. (1,093) (715) (319) (363) (308) (563) --------- --------- --------- --------- -------- -------- Change in A Shares Transactions....... 2,564 (522) 35 (73) (3) 31 --------- --------- --------- --------- -------- -------- C Shares(2): Issued................................ 273 303 -- 45 96 803 Reinvested............................ 9 1 -- 24 24 45 Redeemed.............................. (36) (6) -- (637) (955) (1,703) --------- --------- --------- --------- -------- -------- Change in C Shares Transactions....... 246 298 -- (568) (835) (855) --------- --------- --------- --------- -------- -------- Change in Share Transactions............ 10,678 (10,758) (20,784) 52,707 (1,320) 148 (2,298) ======== ========= ========= ========= ========= ======== ========
* Commencement of operations. (a)Effective August 1, 2005, all T Shares of this fund were exchanged for I Shares and T Shares were no longer offered. (See Note 2.) (1)T shares were offered beginning on October 11, 2004 for the Seix High Yield Fund. (2)C shares were offered beginning on October 11, 2004 for the Seix High Yield Fund. Amounts designated as "--" are $0 or have been rounded to $0. See Notes to Financial Statements. 192 STATEMENTS OF CHANGES IN NET ASSETS (continued) STI CLASSIC FUNDS For the Periods Indicated (Amounts in thousands)
Short-Term U.S. Treasury Securities Fund Strategic Income Fund --------------------------------- ---------------------------------- 04/01/05- 06/01/04- 06/01/03- 04/01/05- 06/01/04- 06/01/03- 03/31/06 03/31/05 05/31/04 03/31/06 03/31/05 05/31/04 --------- --------- --------- --------- --------- --------- Operations: Net Investment Income............... $ 2,382 $ 1,756 $ 2,576 $ 12,771 $ 8,682 $ 11,471 Net Realized Gain (Loss) on Investments Sold, Options, Forward Foreign Currencies and Foreign Currency Transactions............. (808) (817) 1,438 (12,508) 11,389 2,989 Net Change in Unrealized Appreciation (Depreciation) on Investments, Forward Foreign Currency Contracts, Foreign Currencies and Translation of Other Assets and Liabilities in Foreign Currency.................. (122) (534) (4,029) (161) (2,779) (6,605) -------- -------- -------- -------- -------- -------- Change in Net Assets from Operations........................ 1,452 405 (15) 102 17,292 (7,855) -------- -------- -------- -------- -------- -------- Dividends and Distributions to Shareholders: Net Investment Income: I Shares.......................... (1,724) (1,169) (1,437) (10,426) (4,949) (3,651) T Shares.......................... A Shares.......................... (131) (117) (199) (109) (150) (81) C Shares.......................... (528) (471) (940) (2,244) (3,275) (7,336) Realized Capital Gains: I Shares.......................... -- (749) (1,216) (4,450) (733) (423) A Shares.......................... -- (63) (199) (33) (26) (19) C Shares.......................... -- (391) (1,134) (1,056) (535) (792) -------- -------- -------- -------- -------- -------- Total Dividends and Distributions... (2,383) (2,960) (5,125) (18,318) (9,668) (12,302) -------- -------- -------- -------- -------- -------- Change in Net Assets from Capital Transactions...................... (29,864) (54,791) (92,366) 29,254(b) 52,917 32,543 -------- -------- -------- -------- -------- -------- Change in Net Assets................ (30,795) (57,346) (97,506) 11,038 60,541 28,096 -------- -------- -------- -------- -------- -------- Net Assets: Beginning of Period................. 110,080 167,426 264,932 280,508 219,967 191,871 -------- -------- -------- -------- -------- -------- End of Period....................... $ 79,285 $110,080 $167,426 $291,546 $280,508 $219,967 ======== ======== ======== ======== ======== ======== Undistributed (Distribution in Excess of) Net Investment Income, End of Period.............................. $ (2) $ (1) $ -- $ (3,968) $ 4,052 $ (1,028) ======== ======== ======== ======== ======== ======== Total Return Bond Fund (a) ---------------------------------- 04/01/05- 06/01/04- 10/15/03*- 03/31/06 03/31/05 05/31/04 --------- --------- ---------- Operations: Net Investment Income............... $ 2,487 $ 1,714 $ 569 Net Realized Gain (Loss) on Investments Sold, Options, Forward Foreign Currencies and Foreign Currency Transactions............. (531) (493) (186) Net Change in Unrealized Appreciation (Depreciation) on Investments, Forward Foreign Currency Contracts, Foreign Currencies and Translation of Other Assets and Liabilities in Foreign Currency.................. (1,103) 1,299 (1,485) ------- ------- ------- Change in Net Assets from Operations........................ 853 2,520 (1,102) ------- ------- ------- Dividends and Distributions to Shareholders: Net Investment Income: I Shares.......................... (2,522) (987) (255) T Shares.......................... (75) (801) (352) A Shares.......................... C Shares.......................... Realized Capital Gains: I Shares.......................... -- -- -- A Shares.......................... C Shares.......................... ------- ------- ------- Total Dividends and Distributions... (2,597) (1,788) (607) ------- ------- ------- Change in Net Assets from Capital Transactions...................... (387) 15,875 49,199 ------- ------- ------- Change in Net Assets................ (2,131) 16,607 47,490 ------- ------- ------- Net Assets: Beginning of Period................. 64,097 47,490 -- ------- ------- ------- End of Period....................... $61,966 $64,097 $47,490 ======= ======= ======= Undistributed (Distribution in Excess of) Net Investment Income, End of Period.............................. $ (74) $ 44 $ -- ======= ======= =======
* Commencement of operations. (a) Effective August 1, 2005, all T Shares of this fund were exchanged for I Shares and T Shares were no longer offered. (See Note 2.) (b) Redemption fees have been rounded to $0. Amounts designated as "--" are either $0 or have been rounded to $0. See Notes to Financial Statements. 193 STATEMENTS OF CHANGES IN NET ASSETS (continued) STI CLASSIC FUNDS For the Periods Indicated (Amounts in thousands)
Short-Term U.S. Treasury Securities Fund Strategic Income Fund --------------------------------- --------------------------------- 04/01/05- 06/01/04- 06/01/03- 04/01/05- 06/01/04- 06/01/03- 03/31/06 03/31/05 05/31/04 03/31/06 03/31/05 05/31/04 --------- --------- --------- --------- --------- --------- Capital Transactions: I Shares: Proceeds from Shares Issued.......................... $ 6,931 $ 17,440 $ 16,704 $140,531 $115,818 $ 61,718 Dividends Reinvested................................. 258 510 678 3,086 1,019 789 Cost of Shares Redeemed.............................. (21,504) (38,823) (44,103) (82,975) (21,438) (23,966) -------- -------- --------- -------- -------- -------- Change in Net Assets from I Shares Transactions...... $(14,315) $(20,873) $ (26,721) $ 60,642 $ 95,399 $ 38,541 -------- -------- --------- -------- -------- -------- T Shares(1): Proceeds from Shares Issued.......................... Dividends Reinvested................................. Cost of Shares Redeemed.............................. Change in Net Assets from T Shares Transactions...... A Shares(2): Proceeds from Shares Issued.......................... $ 453 $ 1,435 $ 11,230 $ 1,633 $ 2,095 $ 4,920 Dividends Reinvested................................. 108 145 349 127 110 41 Cost of Shares Redeemed.............................. (2,527) (7,892) (13,938) (3,670) (2,794) (682) -------- -------- --------- -------- -------- -------- Change in Net Assets from A Shares Transactions...... $ (1,966) $ (6,312) $ (2,359) $ (1,910) $ (589) $ 4,279 -------- -------- --------- -------- -------- -------- C Shares: Proceeds from Shares Issued.......................... $ 294 $ 1,211 $ 16,687 $ 1,238 $ 4,056 $ 75,089 Dividends Reinvested................................. 505 759 1,810 2,558 2,865 5,643 Cost of Shares Redeemed.............................. (14,382) (29,576) (81,783) (33,274) (48,814) (91,009) -------- -------- --------- -------- -------- -------- Change in Net Assets from C Shares Transactions...... $(13,583) $(27,606) $ (63,286) $(29,478) $(41,893) $(10,277) -------- -------- --------- -------- -------- -------- Change in Net Assets from Capital Transactions......... $(29,864) $(54,791) $ (92,366) $ 29,254 $ 52,917 $ 32,543 ======== ======== ========= ======== ======== ======== Total Return Bond Fund (a) ---------------------------------- 04/01/05- 06/01/04- 10/15/03*- 03/31/06 03/31/05 05/31/04 --------- --------- ---------- Capital Transactions: I Shares: Proceeds from Shares Issued.......................... $ 33,564 $ 63,889 $ 18,136 Dividends Reinvested................................. 681 422 225 Cost of Shares Redeemed.............................. (27,910) (21,945) (2,376) -------- -------- -------- Change in Net Assets from I Shares Transactions...... $ 6,335 $ 42,366 $ 15,985 -------- -------- -------- T Shares(1): Proceeds from Shares Issued.......................... $ 1,207 $ 9,247 $ 34,463 Dividends Reinvested................................. 55 832 352 Cost of Shares Redeemed.............................. (7,984) (36,570) (1,601) -------- -------- -------- Change in Net Assets from T Shares Transactions...... $ (6,722) $(26,491) $ 33,214 -------- -------- -------- A Shares(2): Proceeds from Shares Issued.......................... Dividends Reinvested................................. Cost of Shares Redeemed.............................. Change in Net Assets from A Shares Transactions...... C Shares: Proceeds from Shares Issued.......................... Dividends Reinvested................................. Cost of Shares Redeemed.............................. Change in Net Assets from C Shares Transactions...... Change in Net Assets from Capital Transactions......... $ (387) $ 15,875 $ 49,199 ======== ======== ========
* Commencement of operations. (a) Effective August 1, 2005, all T Shares of this fund were exchanged for I Shares and T Shares were no longer offered. (See Note 2.) (1) T shares were offered beginning on January 14, 2004 for the Total Return Bond Fund. (2) A shares were offered beginning on October 8, 2003 for the Strategic Income Fund. Amounts designated as "--" are $0 or have been rounded to $0. See Notes to Financial Statements. 194 STATEMENTS OF CHANGES IN NET ASSETS (continued) STI CLASSIC FUNDS For the Periods Indicated (Amounts in thousands)
Short-Term U.S. Treasury Securities Fund Strategic Income Fund --------------------------------- --------------------------------- 04/01/05- 06/01/04- 06/01/03- 04/01/05- 06/01/04- 06/01/03- 03/31/06 03/31/05 05/31/04 03/31/06 03/31/05 05/31/04 --------- --------- --------- --------- --------- --------- Share Transactions: I Shares: Issued............................................... 701 1,707 1,628 13,993 11,187 6,185 Reinvested........................................... 26 51 66 314 100 79 Redeemed............................................. (2,175) (3,837) (4,296) (8,337) (2,101) (2,410) -------- -------- -------- -------- -------- -------- Change in I Shares Transactions...................... (1,448) (2,079) (2,602) 5,970 9,186 3,854 -------- -------- -------- -------- -------- -------- T Shares(1): Issued............................................... Reinvested........................................... Redeemed............................................. Change in T Shares Transactions...................... A Shares(2): Issued............................................... 46 139 1,096 161 203 489 Reinvested........................................... 11 14 34 13 11 4 Redeemed............................................. (256) (781) (1,363) (364) (271) (67) -------- -------- -------- -------- -------- -------- Change in A Shares Transactions...................... (199) (628) (233) (190) (57) 426 -------- -------- -------- -------- -------- -------- C Shares: Issued............................................... 30 119 1,62 122 435 7,519 Reinvested........................................... 51 76 178 258 282 566 Redeemed............................................. (1,458) (2,946) (7,989) (3,330) (4,871) (9,144) -------- -------- -------- -------- -------- -------- Change in C Shares Transactions...................... (1,377) (2,751) (6,189) (2,950) (4,154) (1,059) -------- -------- -------- -------- -------- -------- Change in Share Transactions........................... (3,024) (5,458) (9,024) 2,830 4,975 3,221 ======== ======== ======== ======== ======== ======== Total Return Bond Fund (a) ---------------------------------- 04/01/05- 06/01/04- 10/15/03*- 03/31/06 03/31/05 05/31/04 --------- --------- ---------- Share Transactions: I Shares: Issued............................................... 3,336 6,343 1,796 Reinvested........................................... 69 42 22 Redeemed............................................. (2,810) (2,180) (232) -------- -------- -------- Change in I Shares Transactions...................... 595 4,205 1,586 -------- -------- -------- T Shares(1): Issued............................................... 121 922 3,381 Reinvested........................................... 5 83 35 Redeemed............................................. (761) (3,626) (160) -------- -------- -------- Change in T Shares Transactions...................... (635) (2,621) 3,256 -------- -------- -------- A Shares(2): Issued............................................... Reinvested........................................... Redeemed............................................. Change in A Shares Transactions...................... C Shares: Issued............................................... Reinvested........................................... Redeemed............................................. Change in C Shares Transactions...................... Change in Share Transactions........................... (40) 1,584 4,842 ======== ======== ========
* Commencement of operations. (a) Effective August 1, 2005, all T Shares of this fund were exchanged for I Shares and T Shares were no longer offered. (See Note 2.) (1) T shares were offered beginning on January 14, 2004 for the Total Return Bond Fund. (2) A shares were offered beginning on October 8, 2003 for the Strategic Income Fund. Amounts designated as "--" are $0 or have been rounded to $0. See Notes to Financial Statements. 195 STATEMENTS OF CHANGES IN NET ASSETS (continued) STI CLASSIC FUNDS For the Periods Indicated (Amounts in thousands)
U.S. Government Securities U.S. Government Securities Fund Ultra-Short Bond Fund (a) --------------------------------- --------------------------------- 04/01/05- 06/01/04- 06/01/03- 04/01/05- 06/01/04- 06/01/03- 03/31/06 03/31/05 05/31/04 03/31/06 03/31/05 05/31/04 --------- --------- --------- --------- --------- --------- Operations: Net Investment Income................ $ 12,880 $ 9,129 $ 8,954 $ 1,926 $ 1,571 $ 1,569 Net Realized Gain (Loss) on Investments Sold................... (944) (568) (1,697) (126) (51) (257) Net Change in Unrealized Appreciation (Depreciation) on Investments...... (5,944) 3,057 (13,732) (71) (108) (560) -------- -------- -------- -------- -------- -------- Change in Net Assets from Operations......................... 5,992 11,618 (6,457) 1,729 1,412 752 -------- -------- -------- -------- -------- -------- Dividends and Distributions to Shareholders: Net Investment Income: I Shares........................... (13,431) (9,141) (9,197) (1,902) (1,372) (1,347) T Shares........................... A Shares........................... (117) (160) (243) C Shares........................... (286) (341) (696) (119) (306) (559) Realized Capital Gains: A Shares........................... -- -- (922) -- -- -- I Shares........................... -- -- (24) C Shares........................... -- -- (92) -- -- -- -------- -------- -------- -------- -------- -------- Total Dividends and Distributions.... (13,834) (9,642) (11,174) (2,021) (1,678) (1,906) -------- -------- -------- -------- -------- -------- Change in Net Assets from Capital Transactions....................... 891(c) 5,917 36,764 (19,784) (52,561) (2,362) -------- -------- -------- -------- -------- -------- Change in Net Assets................. (6,951) 7,893 19,133 (20,076) (52,827) (3,516) -------- -------- -------- -------- -------- -------- Net Assets: Beginning of Period.................. 334,367 326,474 307,341 62,692 115,519 119,035 -------- -------- -------- -------- -------- -------- End of Period........................ $327,416 $334,367 $326,474 $ 42,616 $ 62,692 $115,519 ======== ======== ======== ======== ======== ======== Undistributed (Distribution in Excess of) Net Investment Income, End of Period............................... $ 605 $ 607 $ 1 $ 111 $ 118 $ 2 ======== ======== ======== ======== ======== ======== Ultra-Short Bond Fund (b) --------------------------------- 04/01/05- 06/01/04- 06/01/03- 03/31/06 03/31/05 05/31/04 --------- --------- --------- Operations: Net Investment Income................ $ 7,772 $ 3,501 $ 3,821 Net Realized Gain (Loss) on Investments Sold................... (421) (141) (460) Net Change in Unrealized Appreciation (Depreciation) on Investments...... (420) (311) (1,377) -------- -------- -------- Change in Net Assets from Operations......................... 6,931 3,049 1,984 -------- -------- -------- Dividends and Distributions to Shareholders: Net Investment Income: I Shares........................... (6,434) (1,503) (2,161) T Shares........................... (1,464) (2,237) (1,656) A Shares........................... C Shares........................... Realized Capital Gains: A Shares........................... -- -- -- I Shares........................... -- -- -- C Shares........................... -------- -------- -------- Total Dividends and Distributions.... (7,898) (3,740) (3,817) -------- -------- -------- Change in Net Assets from Capital Transactions....................... 33,249 (36,174) 35,286 -------- -------- -------- Change in Net Assets................. 32,282 36,865 33,453 -------- -------- -------- Net Assets: Beginning of Period.................. 212,975 249,840 216,387 -------- -------- -------- End of Period........................ $245,257 $212,975 $249,840 ======== ======== ======== Undistributed (Distribution in Excess of) Net Investment Income, End of Period............................... $ 375 $ 148 $ -- ======== ======== ========
(a) Effective August 1, 2005, all C Shares of this fund were exchanged for I Shares and C Shares were no longer offered. (See Note 2.) (b) Effective August 1, 2005, all T Shares of this fund were exchanged for I Shares and T Shares were no longer offered. (See Note 2.) (c) Includes redemption fees collected of $1. Amounts designated as "--" are either $0 or have been rounded to $0. See Notes to Financial Statements. 196 STATEMENTS OF CHANGES IN NET ASSETS (continued) STI CLASSIC FUNDS For the Periods Indicated (Amounts in thousands)
U.S. Government Securities U.S. Government Securities Fund Ultra-Short Bond Fund (a) --------------------------------- --------------------------------- 04/01/05- 06/01/04- 06/01/03- 04/01/05- 06/01/04- 06/01/03- 03/31/06 03/31/05 05/31/04 03/31/06 03/31/05 05/31/04 --------- --------- --------- --------- --------- --------- Capital Transactions: I Shares: Proceeds from Shares Issued....... $ 159,338 $ 80,344 $138,247 $ 50,911 $ 30,218 $ 62,017 Dividends Reinvested.............. 2,992 2,238 3,400 691 575 596 Cost of Shares Redeemed........... (157,312) (64,224) (85,923) (57,870) (58,326) (79,764) --------- -------- -------- --------- -------- -------- Change in Net Assets from I Shares Transactions.................... $ 5,018 $ 18,358 $ 55,724 $ (6,268) $(27,533) $(17,151) --------- -------- -------- --------- -------- -------- T Shares: Proceeds from Shares Issued....... Dividends Reinvested.............. Cost of Shares Redeemed........... Change in Net Assets from T Shares Transactions.................... A Shares: Proceeds from Shares Issued....... $ 2,798 $ 2,421 $ 11,471 Dividends Reinvested.............. 94 142 241 Cost of Shares Redeemed........... (2,870) (8,089) (12,029) --------- -------- -------- Change in Net Assets from A Shares Transactions.................... $ 22 $ (5,526) $ (317) --------- -------- -------- C Shares(1): Proceeds from Shares Issued....... $ 65 $ 160 $ 4,150 $ 8,253 $ 5,128 $ 85,370 Dividends Reinvested.............. 274 295 645 99 280 480 Cost of Shares Redeemed........... (4,488) (7,370) (23,438) (21,868) (30,436) (71,061) --------- -------- -------- --------- -------- -------- Change in Net Assets from C Shares Transactions.................... $ (4,149) $ (6,915) $(18,643) $ (13,516) $(25,028) $ 14,789 --------- -------- -------- --------- -------- -------- Change in Net Assets from Capital Transactions...................... $ 891 $ 5,917 $ 36,764 $ (19,784) $(52,561) $ (2,362) ========= ======== ======== ========= ======== ======== Ultra-Short Bond Fund (b) ---------------------------------- 04/01/05- 06/01/04- 06/01/03- 03/31/06 03/31/05 05/31/04 --------- --------- --------- Capital Transactions: I Shares: Proceeds from Shares Issued....... $ 282,129 $ 33,501 $ 155,867 Dividends Reinvested.............. 1,145 374 493 Cost of Shares Redeemed........... (110,138) (71,824) (189,463) --------- -------- --------- Change in Net Assets from I Shares Transactions.................... $ 173,136 $(37,949) $ (33,103) --------- -------- --------- T Shares: Proceeds from Shares Issued....... $ 48,762 $ 52,537 $ 150,211 Dividends Reinvested.............. 203 281 210 Cost of Shares Redeemed........... (188,852) (51,043) (82,032) --------- -------- --------- Change in Net Assets from T Shares Transactions.................... $(139,887) $ 1,775 $ 68,389 --------- -------- --------- A Shares: Proceeds from Shares Issued....... Dividends Reinvested.............. Cost of Shares Redeemed........... Change in Net Assets from A Shares Transactions.................... C Shares(1): Proceeds from Shares Issued....... Dividends Reinvested.............. Cost of Shares Redeemed........... Change in Net Assets from C Shares Transactions.................... Change in Net Assets from Capital Transactions...................... $ 33,249 $(36,174) $ 35,286 ========= ======== =========
(a) Effective August 1, 2005, all C Shares of this fund were exchanged for I Shares and C Shares were no longer offered. (See Note 2.) (b) Effective August 1, 2005, all T Shares of this fund were exchanged for I Shares and T Shares were no longer offered. (See Note 2.) (1) C Shares were offered beginning on April 16, 2003 for the U.S. Government Securities Ultra-Short Bond Fund. Amounts designated as "--" are $0 or have been rounded to $0. See Notes to Financial Statements. 197 STATEMENTS OF CHANGES IN NET ASSETS (continued) STI CLASSIC FUNDS For the Periods Indicated (Amounts in thousands)
U.S. Government Securities U.S. Government Securities Fund Ultra-Short Bond Fund (a) --------------------------------- --------------------------------------- 04/01/05- 06/01/04- 06/01/03- 04/01/05- 06/01/04- 06/01/03- 03/31/06 03/31/05 05/31/04 03/31/06 03/31/05 (c) 05/31/04 (c) --------- --------- --------- --------- ------------ ------------ Share Transactions: I Shares: Issued........................... 15,314 7,670 13,051 5,099 3,038 6,217 Reinvested....................... 288 213 322 86 58 60 Redeemed......................... (15,185) (6,141) (8,140) (25,788) (5,865) (8,005) --------- -------- -------- --------- -------- -------- Change in I Shares Transactions................... 417 1,742 5,233 (20,603) (2,769) (1,728) --------- -------- -------- --------- -------- -------- T Shares: Issued........................... Reinvested....................... Redeemed......................... Change in T Shares Transactions................... A Shares: Issued........................... 268 231 1,088 Reinvested....................... 9 14 23 Redeemed......................... (275) (769) (1,145) --------- -------- -------- Change in A Shares Transactions................... 2 (524) (34) --------- -------- -------- C Shares(1): Issued........................... 6 15 387 833 517 8,554 Reinvested....................... 26 28 61 10 28 48 Redeemed......................... (430) (704) (2,218) (2,163) (3,066) (7,134) --------- -------- -------- --------- -------- -------- Change in C Shares Transactions................... (398) (661) (1,770) (1,320) (2,521) 1,468 --------- -------- -------- --------- -------- -------- Change in Share Transactions....... 21 557 3,429 (21,923) (5,290) (260) ========= ======== ======== ========= ======== ======== Ultra-Short Bond Fund (b) ---------------------------------------- 04/01/05- 06/01/04- 06/01/03- 03/31/06 03/31/05 (d) 05/31/04 (d) --------- ------------ ------------ Share Transactions: I Shares: Issued........................... 28,114 3,340 15,489 Reinvested....................... 132 37 49 Redeemed......................... (40,744) (7,165) (18,830) --------- -------- -------- Change in I Shares Transactions................... (12,498) (3,788) (3,292) --------- -------- -------- T Shares: Issued........................... 4,871 5,262 14,996 Reinvested....................... 38 28 21 Redeemed......................... (74,575) (5,115) (8,196) --------- -------- -------- Change in T Shares Transactions................... (69,666) 175 6,821 --------- -------- -------- A Shares: Issued........................... Reinvested....................... Redeemed......................... Change in A Shares Transactions................... C Shares(1): Issued........................... Reinvested....................... Redeemed......................... Change in C Shares Transactions................... Change in Share Transactions....... (82,164) (3,613) 3,529 ========= ======== ========
(a) Effective August 1, 2005, all C Shares of this fund were exchanged for I Shares and C shares were no longer offered. (See Note 2.) (b) Effective August 1, 2005, all T Shares of this fund were exchanged for I Shares and T Shares were no longer offered. (See Note 2.) (c) The I Share amounts have been restated to reflect a 4.974874:1 reverse stock split on April 1, 2005. (d) The I and T Shares amounts have been restated to reflect a 5:1 reverse stock split on April 1, 2005. (1) C Shares were offered beginning on April 16, 2003 for the U.S. Government Securities Ultra-Short Bond Fund. Amounts designated as "--" are $0 or have been rounded to $0. See Notes to Financial Statements. 198 STATEMENTS OF CHANGES IN NET ASSETS (continued) STI CLASSIC FUNDS For the Periods Indicated (Amounts in thousands)
Virginia Intermediate Virginia Municipal Municipal Bond Fund Bond Fund ----------------------------------- ----------------------------------- 04/01/05- 06/01/04- 06/01/03- 04/01/05- 06/01/04- 06/01/03- 03/31/06 03/31/05 05/31/04 03/31/06 03/31/05 05/31/04 --------- --------- --------- --------- --------- --------- Operations: Net Investment Income.............................. $ 5,998 $ 5,093 $ 6,533 $ 1,956 $ 1,554 $ 1,946 Net Realized Gain on Investments Sold.............. 280 1,570 1,253 250 354 1,373 Net Change in Unrealized Appreciation (Depreciation) on Investments.................... (865) (547) (9,858) (435) 359 (4,048) -------- -------- -------- ------- ------- ------- Change in Net Assets from Operations............... 5,413 6,116 (2,072) 1,771 2,267 (729) -------- -------- -------- ------- ------- ------- Dividends and Distributions to Shareholders: Net Investment Income: I Shares......................................... (5,794) (4,860) (6,203) (1,814) (1,394) (1,596) A Shares......................................... (205) (260) (324) (7) (3) -- C Shares......................................... -- (138) (172) (353) Realized Capital Gains: I Shares......................................... (1,141) (1,533) (1,617) (508) (725) (996) A Shares......................................... (38) (80) (78) (1) (2) -- C Shares......................................... -- (49) (113) (278) -------- -------- -------- ------- ------- ------- Total Dividends and Distributions.................. (7,178) (6,733) (8,222) (2,517) (2,409) (3,223) -------- -------- -------- ------- ------- ------- Change in Net Assets from Capital Transactions..... (7,105)(a) (7,405) (14,498) 2,106(a) 1,539 (7,763) -------- -------- -------- ------- ------- ------- Change in Net Assets............................... (8,870) (8,022) (24,792) 1,360 1,397 (11,715) -------- -------- -------- ------- ------- ------- Net Assets: Beginning of Period................................ 184,102 192,124 216,916 54,740 53,343 65,058 -------- -------- -------- ------- ------- ------- End of Period...................................... $175,232 $184,102 $197,124 $56,100 $54,740 $53,343 ======== ======== ======== ======= ======= ======= Undistributed (Distribution in Excess of) Net Investment Income, End of Period................... $ (18) $ (8) $ 19 $ (17) $ (14) $ 1 ======== ======== ======== ======= ======= =======
(a) Includes redemption fees collected of $1. Amounts designated as "--" are either $0 or have been rounded to $0. See Notes to Financial Statements. 199 STATEMENTS OF CHANGES IN NET ASSETS (continued) STI CLASSIC FUNDS For the Periods Indicated (Amounts in thousands)
Virginia Intermediate Virginia Municipal Municipal Bond Fund Bond Fund ---------------------------------- ---------------------------------- 04/01/05- 06/01/04- 06/01/03- 04/01/05- 06/01/04- 06/01/03- 03/31/06 03/31/05 05/31/04 03/31/06 03/31/05 05/31/04 --------- --------- --------- --------- --------- --------- Capital Transactions: I Shares: Proceeds from Shares Issued.......................... $ 21,239 $ 15,236 $ 19,400 $ 14,884 $ 9,839 $ 8,850 Dividends Reinvested................................. 882 1,109 1,285 343 361 477 Cost of Shares Redeemed.............................. (27,623) (20,317) (35,871) (11,006) (5,501) (10,867) -------- -------- -------- -------- ------- -------- Change in Net Assets from I Shares Transactions...... $ (5,502) $ (3,972) $(15,186) $ 4,221 $ 4,699 $ (1,540) -------- -------- -------- -------- ------- -------- A Shares(1): Proceeds from Shares Issued.......................... $ 658 $ 1,326 $ 5,471 $ 324 $ 198 $ 128 Dividends Reinvested................................. 173 271 308 4 4 -- Cost of Shares Redeemed.............................. (2,443) (5,030) (5,091) (442) (150) -- -------- -------- -------- -------- ------- -------- Change in Net Assets from A Shares Transactions...... $ (1,612) $ (3,433) $ 688 $ (114) $ 52 $ 128 -------- -------- -------- -------- ------- -------- C Shares(2): Proceeds from Shares Issued.......................... $ 9 $ 397 $ 236 $ 2,118 Dividends Reinvested................................. -- 148 203 458 Cost of Shares Redeemed.............................. -- (2,546) (3,651) (8,927) -------- -------- ------- -------- Change in Net Assets from C Shares Transactions...... $ 9 $ (2,001) $(3,212) $ (6,351) -------- -------- ------- -------- Change in Net Assets from Capital Transactions......... $ (7,105) $ (7,405) $(14,498) $ 2,106 $ 1,539 $ (7,763) ======== ======== ======== ======== ======= ========
(1) A shares were offered beginning on May 11, 2004 for the Virginia Municipal Bond Fund. (2) C shares were offered beginning on September 1, 2005 for the Virginia Intermediate Municipal Bond Fund. Amounts designated as "--" are $0 or have been rounded to $0. See Notes to Financial Statements. 200 STATEMENTS OF CHANGES IN NET ASSETS (continued) STI CLASSIC FUNDS For the Periods Indicated (Amounts in thousands)
Virginia Intermediate Virginia Municipal Municipal Bond Fund Bond Fund ---------------------------------- ---------------------------------- 04/01/05- 06/01/04- 06/01/03- 04/01/05- 06/01/04- 06/01/03- 03/31/06 03/31/05 05/31/04 03/31/06 03/31/05 05/31/04 --------- --------- --------- --------- --------- --------- Share Transactions: I Shares: Issued............................................... 2,091 1,487 1,860 1,431 941 821 Reinvested........................................... 88 108 123 33 34 45 Redeemed............................................. (2,720) (1,980) (3,434) (1,059) (527) (1,017) -------- -------- -------- -------- ------- -------- Change in I Shares Transactions...................... (541) (385) (1,451) 405 448 (151) -------- -------- -------- -------- ------- -------- A Shares(1): Issued............................................... 64 130 518 32 19 12 Reinvested........................................... 17 26 30 -- -- -- Redeemed............................................. (240) (491) (489) (43) (14) -- -------- -------- -------- -------- ------- -------- Change in A Shares Transactions...................... (159) (335) 59 (11) 5 12 -------- -------- -------- -------- ------- -------- C Shares(2): Issued............................................... 1 38 24 194 Reinvested........................................... -- 14 19 43 Redeemed............................................. -- (244) (347) (828) -------- -------- ------- -------- Change in C Shares Transactions...................... 1 (192) (304) (591) -------- -------- ------- -------- Change in Share Transactions........................... (699) (720) (1,392) 202 149 (730) ======== ======== ======== ======== ======= ========
(1) A Shares were offered beginning on May 11, 2004 for the Virginia Municipal Bond Fund. (2) C Shares were offered beginning on September 1, 2005 for the Virginia Intermediate Municipal Bond Fund. Amounts designated as "--" are $0 or have been rounded to $0. See Notes to Financial Statements. 201 STATEMENTS OF CHANGES IN NET ASSETS (continued) STI CLASSIC FUNDS For the Periods Indicated (Amounts in thousands)
Prime Quality Tax-Exempt Money Market Fund Money Market Fund ------------------------------------ ------------------------------------ 04/01/05- 06/01/04- 06/01/03- 04/01/05- 06/01/04- 06/01/03- 03/31/06 03/31/05 05/31/04 03/31/06 03/31/05 05/31/04 ---------- ---------- ---------- ---------- ---------- ---------- Operations: Net Investment Income.... $ 186,682 $ 54,437 $ 26,541 $ 37,253 $ 11,375 $ 5,965 Net Realized Gain (Loss) on Investments Sold.... 114 2 655 103 83 353 Net Increase from Payments by Affiliates and Net Gains (Losses) Realized on the Disposal of Investments in Violation of Restrictions........... 18 -- -- -- -- -- ---------- ---------- ---------- ---------- ---------- ---------- Change in Net Assets from Operations............. 186,814 54,439 27,196 37,356 11,458 6,318 ---------- ---------- ---------- ---------- ---------- ---------- Dividends and Distributions to Shareholders: Net Investment Income: I Shares............... (98,687) (35,893) (20,077) (24,325) (8,935) (5,054) A Shares............... (87,817) (18,507) (6,411) (12,929) (2,440) (911) C Shares............... (178) (124) (53) Realized Capital Gains: I Shares............... -- -- (79) (47) (321) (110) A Shares............... -- -- (38) (27) (110) (26) C Shares............... -- -- -- ---------- ---------- ---------- ---------- ---------- ---------- Total Dividends and Distributions.......... (186,682) (54,524) (26,658) (37,328) (11,806) (6,101) ---------- ---------- ---------- ---------- ---------- ---------- Capital Transactions: Change in Net Assets from Capital Transactions... 1,683,808 (46,079) (870,301) 505,248 85,862 (74,992) ---------- ---------- ---------- ---------- ---------- ---------- Change in Net Assets..... 1,683,940 (46,164) (869,763) 505,276 85,514 (74,775) ---------- ---------- ---------- ---------- ---------- ---------- Net Assets: Beginning of Period...... 5,308,493 5,354,657 6,224,420 1,338,605 1,253,091 1,327,866 ---------- ---------- ---------- ---------- ---------- ---------- End of Period............ $6,992,433 $5,308,493 $5,354,657 $1,843,881 $1,338,605 $1,253,091 ========== ========== ========== ========== ========== ========== Undistributed (Distribution in Excess of) Net Investment Income, End of Period................... $ (74) $ (74) $ (65) $ (1) $ -- $ -- ========== ========== ========== ========== ========== ========== U.S. Government Securities Money Market Fund ---------------------------------- 04/01/05- 06/01/04- 06/01/03- 03/31/06 03/31/05 05/31/04 --------- --------- ---------- Operations: Net Investment Income.... $ 21,609 $ 8,511 $ 3,705 Net Realized Gain (Loss) on Investments Sold.... -- -- 27 Net Increase from Payments by Affiliates and Net Gains (Losses) Realized on the Disposal of Investments in Violation of Restrictions........... -- -- -- -------- --------- ---------- Change in Net Assets from Operations............. 21,609 8,511 3,732 -------- --------- ---------- Dividends and Distributions to Shareholders: Net Investment Income: I Shares............... (14,580) (6,507) (3,043) A Shares............... (7,029) (2,015) (662) C Shares............... Realized Capital Gains: I Shares............... -- -- -- A Shares............... -- -- -- C Shares............... -------- --------- ---------- Total Dividends and Distributions.......... (21,609) (8,522) (3,705) -------- --------- ---------- Capital Transactions: Change in Net Assets from Capital Transactions... (79,753) (102,119) (393,409) -------- --------- ---------- Change in Net Assets..... (79,753) (102,130) (393,382) -------- --------- ---------- Net Assets: Beginning of Period...... 747,294 849,424 1,242,806 -------- --------- ---------- End of Period............ $667,541 $ 747,294 $ 849,424 ======== ========= ========== Undistributed (Distribution in Excess of) Net Investment Income, End of Period................... $ -- $ -- $ 11 ======== ========= ==========
Amounts designated as "--" are either $0 or have been rounded to $0. See Notes to Financial Statements. 202 STATEMENTS OF CHANGES IN NET ASSETS (continued) STI CLASSIC FUNDS For the Periods Indicated (Amounts in thousands)
Prime Quality Tax-Exempt Money Market Fund Money Market Fund --------------------------------------- --------------------------------------- 04/01/05- 06/01/04- 06/01/03- 04/01/05- 06/01/04- 06/01/03- 03/31/06 03/31/05 05/31/04 03/31/06 03/31/05 05/31/04 ----------- ----------- ----------- ----------- ----------- ----------- Capital Transactions I Shares Proceeds from Shares Issued......... $ 4,293,785 $ 3,189,305 $ 3,517,343 $ 1,815,318 $ 1,211,836 $ 1,424,246 Dividends Reinvested................ 10,886 3,021 1,743 62 -- -- Cost of Shares Redeemed............. (4,501,652) (3,496,078) (4,326,125) (1,578,954) (1,253,857) (1,534,286) ----------- ----------- ----------- ----------- ----------- ----------- Change in Net Assets from I Shares Transactions...................... $ (196,981) $ (303,752) $ (807,039) $ 236,426 $ (42,021) $ (110,040) ----------- ----------- ----------- ----------- ----------- ----------- A Shares Proceeds from Shares Issued......... $ 3,180,851 $ 1,229,000 $ 1,045,548 $ 1,385,281 $ 496,256 $ 361,662 Dividends Reinvested................ 91,013 15,823 6,441 13,368 2,233 937 Cost of Shares Redeemed............. (1,384,974) (971,800) (1,126,059) (1,129,827) (370,606) (327,551) ----------- ----------- ----------- ----------- ----------- ----------- Change in Net Assets from A Shares Transactions...................... $ 1,886,890 $ 273,023 $ (74,070) $ 268,822 $ 127,883 $ 35,048 ----------- ----------- ----------- ----------- ----------- ----------- C Shares Proceeds from Shares Issued......... $ 900 $ 7,507 $ 56,986 Dividends Reinvested................ 164 92 43 Cost of Shares Redeemed............. (7,165) (22,949) (46,221) ----------- ----------- ----------- Change in Net Assets from C Shares Transactions...................... $ (6,101) $ (15,350) $ 10,808 ----------- ----------- ----------- Change in Net Assets from Capital Transactions......................... $ 1,683,808 $ (46,079) $ (870,301) $ 505,248 $ 85,862 $ (74,992) =========== =========== =========== =========== =========== =========== Share Transactions: I Shares Issued.............................. 4,293,785 3,189,305 3,517,343 1,815,318 1,211,837 1,424,246 Reinvested.......................... 10,886 3,021 1,743 62 -- -- Redeemed............................ (4,501,652) (3,496,078) (4,326,125) (1,578,954) (1,253,857) (1,534,286) ----------- ----------- ----------- ----------- ----------- ----------- Change in I Shares Transactions..... (196,981) (303,752) (807,039) 236,426 (42,020) (110,040) ----------- ----------- ----------- ----------- ----------- ----------- A Shares Issued.............................. 3,180,851 1,229,000 1,045,548 1,385,281 496,256 361,662 Reinvested.......................... 91,013 15,823 6,441 13,368 2,233 937 Redeemed............................ (1,384,974) (971,800) (1,126,059) (1,129,827) (370,606) (327,551) ----------- ----------- ----------- ----------- ----------- ----------- Change in A Shares Transactions..... 1,886,890 273,023 (74,070) 268,822 127,883 35,048 ----------- ----------- ----------- ----------- ----------- ----------- C Shares Issued.............................. 900 7,507 56,986 Reinvested.......................... 164 92 43 Redeemed............................ (7,165) (22,949) (46,221) ----------- ----------- ----------- Change in C Shares Transactions..... (6,101) (15,350) 10,808 ----------- ----------- ----------- Change in Share Transactions.......... 1,683,808 (46,079) (870,301) 505,248 85,863 (74,992) =========== =========== =========== =========== =========== =========== U.S. Government Securities Money Market Fund --------------------------------------- 04/01/05- 06/01/04- 06/01/03- 03/31/06 03/31/05 05/31/04 ----------- ----------- ----------- Capital Transactions I Shares Proceeds from Shares Issued......... $ 1,423,967 $ 1,049,985 $ 1,110,958 Dividends Reinvested................ 1,077 578 406 Cost of Shares Redeemed............. (1,528,403) (1,148,626) (1,488,621) ----------- ----------- ----------- Change in Net Assets from I Shares Transactions...................... $ (103,359) $ (98,063) $ (377,257) ----------- ----------- ----------- A Shares Proceeds from Shares Issued......... $ 428,415 $ 277,785 $ 352,303 Dividends Reinvested................ 7,367 1,737 659 Cost of Shares Redeemed............. (412,176) (283,578) (369,114) ----------- ----------- ----------- Change in Net Assets from A Shares Transactions...................... $ 23,606 $ (4,056) $ (16,152) ----------- ----------- ----------- C Shares Proceeds from Shares Issued......... Dividends Reinvested................ Cost of Shares Redeemed............. Change in Net Assets from C Shares Transactions...................... Change in Net Assets from Capital Transactions......................... $ (79,753) $ (102,119) $ (393,409) =========== =========== =========== Share Transactions: I Shares Issued.............................. 1,423,967 1,049,985 1,110,958 Reinvested.......................... 1,077 578 406 Redeemed............................ (1,528,403) (1,148,626) (1,488,621) ----------- ----------- ----------- Change in I Shares Transactions..... (103,359) (98,063) (377,257) ----------- ----------- ----------- A Shares Issued.............................. 428,415 277,784 352,303 Reinvested.......................... 7,367 1,737 659 Redeemed............................ (412,176) (283,578) (369,114) ----------- ----------- ----------- Change in A Shares Transactions..... 23,606 (4,057) (16,152) ----------- ----------- ----------- C Shares Issued.............................. Reinvested.......................... Redeemed............................ Change in C Shares Transactions..... Change in Share Transactions.......... (79,753) (102,120) (393,409) =========== =========== ===========
Amounts designated as "--" are $0 or have been rounded to $0. See Notes to Financial Statements. 203 STATEMENTS OF CHANGES IN NET ASSETS (continued) STI CLASSIC FUNDS For the Periods Indicated (Amounts in thousands)
U.S. Treasury Virginia Tax-Free Money Market Fund Money Market Fund ------------------------------------ ---------------------------------- 04/01/05- 06/01/04- 06/01/03- 04/01/05- 06/01/04- 06/01/03- 03/31/06 03/31/05 05/31/04 3/31/2006 03/31/05 05/31/04 ---------- ---------- ---------- --------- --------- ---------- Operations: Net Investment Income.............................. $ 43,859 $ 13,185 $ 3,587 $ 10,915 $ 2,749 $ 1,436 Net Realized Gain (Loss) on Investments Sold....... (14) (198) 628 107 81 87 ---------- ---------- ---------- -------- -------- ---------- Change in Net Assets from Operations............... 43,845 12,987 4,215 11,022 2,830 1,523 ---------- ---------- ---------- -------- -------- ---------- Dividends and Distributions to Shareholders: Net Investment Income: I Shares......................................... (43,695) (13,515) (3,589) (4,669) (1,651) (1,059) A Shares......................................... (164) (3) (1) (6,247) (1,097) (377) Realized Capital Gains: I Shares......................................... -- -- (590) (39) (76) (80) A Shares......................................... -- -- -- (63) (66) (44) ---------- ---------- ---------- -------- -------- ---------- Total Dividends and Distributions.................. (43,859) (13,518) (4,180) (11,018) (2,890) (1,560) ---------- ---------- ---------- -------- -------- ---------- Capital Transactions: Change in Net Assets from Capital Transactions..... 254,466 174,651 153,152 155,310 82,519 (23,691) ---------- ---------- ---------- -------- -------- ---------- Change in Net Assets............................... 254,452 174,120 153,187 155,314 82,459 (23,728) ---------- ---------- ---------- -------- -------- ---------- Net Assets: Beginning of Period................................ 1,408,086 1,233,966 1,080,779 374,757 292,298 316,026 ---------- ---------- ---------- -------- -------- ---------- End of Period...................................... $1,662,538 $1,408,086 $1,233,966 $530,071 $374,757 $ 292,298 ========== ========== ========== ======== ======== ========== Undistributed (Distribution in Excess of) Net Investment Income, End of Period................... $ 62 $ 62 $ (21) $ 5 $ 6 $ -- ========== ========== ========== ======== ======== ==========
Amounts designated as "--" are either $0 or have been rounded to $0. See Notes to Financial Statements. 204 STATEMENTS OF CHANGES IN NET ASSETS (continued) STI CLASSIC FUNDS For the Periods Indicated (Amounts in thousands)
U.S. Treasury Virginia Tax-Free Money Market Fund Money Market Fund --------------------------------------- ----------------------------------- 04/01/05- 06/01/04- 06/01/03- 04/01/05- 06/01/04- 06/01/03- 03/31/06 03/31/05 05/31/04 03/31/06 03/31/05 05/31/04 ----------- ----------- ----------- --------- --------- ----------- Capital Transactions I Shares Proceeds from Shares Issued................... $ 2,817,452 $ 1,291,895 $ 1,849,253 $ 370,968 $ 220,098 $ 263,166 Dividends Reinvested.......................... 320 100 53 677 200 129 Cost of Shares Redeemed....................... (2,575,370) (1,117,246) (1,696,555) (322,706) (216,847) (309,014) ----------- ----------- ----------- --------- --------- ----------- Change in Net Assets from I Shares Transactions................................ $ 242,402 $ 174,749 $ 152,751 $ 48,939 $ 3,451 $ (45,719) ----------- ----------- ----------- --------- --------- ----------- A Shares Proceeds from Shares Issued................... $ 95,793 $ 5 $ 400 $ 379,425 $ 206,304 $ 133,175 Dividends Reinvested.......................... 165 3 1 6,510 1,004 421 Cost of Shares Redeemed....................... (83,894) (106) -- (279,564) (128,240) (111,568) ----------- ----------- ----------- --------- --------- ----------- Change in Net Assets from A Shares Transactions................................ $ 12,064 $ (98) $ 401 $ 106,371 $ 79,068 $ 22,028 ----------- ----------- ----------- --------- --------- ----------- Change in Net Assets from Capital Transactions.................................. $ 254,466 $ 174,651 $ 153,152 $ 155,310 $ 82,519 $ (23,691) =========== =========== =========== ========= ========= =========== Share Transactions: I Shares Issued........................................ 2,817,452 1,291,895 1,849,253 370,968 220,098 263,166 Reinvested.................................... 320 100 53 677 200 129 Redeemed...................................... (2,575,370) (1,117,246) (1,696,555) (322,706) (216,847) (309,014) ----------- ----------- ----------- --------- --------- ----------- Change in I Shares Transactions............... 242,402 174,749 152,751 48,939 3,451 (45,719) ----------- ----------- ----------- --------- --------- ----------- A Shares Issued........................................ 95,793 5 400 379,425 206,304 133,175 Reinvested.................................... 165 3 1 6,510 1,004 421 Redeemed...................................... (83,894) (106) -- (279,564) (128,240) (111,568) ----------- ----------- ----------- --------- --------- ----------- Change in A Shares Transactions............... 12,064 (98) 401 106,371 79,068 22,028 ----------- ----------- ----------- --------- --------- ----------- Change in Share Transactions.................... 254,466 174,651 153,152 155,310 82,519 (23,691) =========== =========== =========== ========= ========= ===========
Amounts designated as "--" are $0 or have been rounded to $0. See Notes to Financial Statements. 205 FINANCIAL HIGHLIGHTS STI CLASSIC FUNDS Selected Data For a Share of Beneficial Interest Outstanding Throughout the Periods Indicated.
Net Realized and Dividends Distributions Net Asset Unrealized from from Total Value, Net Gains Net Realized Dividends Beginning Investment (Losses) on Total From Investment Capital and of Period Income Investments Operations Income Gains Distributions --------- ---------- ----------- ---------- ---------- ------------- ------------- CORE BOND FUND I Shares Year Ended March 31, 2006 $10.12 $ 0.41 $(0.24) $ 0.17 $(0.42) $(0.01) $(0.43) Period Ended March 31, 2005 10.30 0.15 (0.14) 0.01 (0.14) (0.05) (0.19) Year Ended October 31, 2004++ 10.31 0.31 0.23 0.54 (0.32) (0.23) (0.55) Year Ended October 31, 2003 10.00 0.30 0.35 0.65 (0.34) -- (0.34) Year Ended October 31, 2002 10.34 0.42 (0.29) 0.13 (0.42) (0.05) (0.47) Year Ended October 31, 2001 9.66 0.59 0.70 1.29 (0.61) -- (0.61) A Shares Year Ended March 31, 2006 10.41 0.38 (0.24) 0.14 (0.39) (0.01) (0.40) Period Ended March 31, 2005 10.60 0.12(a) (0.13)(a) (0.01) (0.13) (0.05) (0.18) Year Ended October 31, 2004++ 10.49 0.18 0.35 0.53 (0.19) (0.23) (0.42) Year Ended October 31, 2003 10.08 0.29 0.34 0.63 (0.22) -- (0.22) Period Ended October 31, 2002(b) 10.00 0.27 0.09 0.36 (0.28) -- (0.28) C Shares Year Ended March 31, 2006 10.12 0.32 (0.24) 0.08 (0.33) (0.01) (0.34) Period Ended March 31, 2005 10.30 0.11 (0.13) (0.02) (0.11) (0.05) (0.16) Period Ended October 31, 2004++(c) 10.25 0.01 0.06 0.07 (0.02) -- (0.02) FLORIDA TAX-EXEMPT BOND FUND I Shares Year Ended March 31, 2006 10.90 0.34 (0.03) 0.31 (0.34) (0.05) (0.39) Period Ended March 31, 2005+ 10.93 0.26 0.10 0.36 (0.26) (0.13) (0.39) Year Ended May 31, 2004 11.69 0.32(a) (0.56)(a) (0.24) (0.32) (0.20) (0.52) Year Ended May 31, 2003 10.95 0.40 0.79 1.19 (0.40) (0.05) (0.45) Year Ended May 31, 2002 10.79 0.40 0.22 0.62 (0.40) (0.06) (0.46) Year Ended May 31, 2001 10.06 0.44 0.73 1.17 (0.44) -- (0.44) A Shares Year Ended March 31, 2006 10.91 0.33 (0.03) 0.30 (0.33) (0.05) (0.38) Period Ended March 31, 2005+ 10.93 0.25 0.11 0.36 (0.25) (0.13) (0.38) Year Ended May 31, 2004 11.69 0.30(a) (0.56)(a) (0.26) (0.30) (0.20) (0.50) Year Ended May 31, 2003 10.95 0.38 0.79 1.17 (0.38) (0.05) (0.43) Year Ended May 31, 2002 10.79 0.38 0.22 0.60 (0.38) (0.06) (0.44) Year Ended May 31, 2001 10.07 0.42 0.72 1.14 (0.42) -- (0.42) C Shares Year Ended March 31, 2006 10.93 0.24 (0.03) 0.21 (0.24) (0.05) (0.29) Period Ended March 31, 2005+ 10.96 0.19 0.10 0.29 (0.19) (0.13) (0.32) Year Ended May 31, 2004 11.71 0.24(a) (0.55)(a) (0.31) (0.24) (0.20) (0.44) Year Ended May 31, 2003 10.97 0.32 0.79 1.11 (0.32) (0.05) (0.37) Year Ended May 31, 2002 10.81 0.32 0.22 0.54 (0.32) (0.06) (0.38) Year Ended May 31, 2001 10.09 0.37 0.72 1.09 (0.37) -- (0.37) Ratio of Expenses to Ratio of Ratio of Average Net Net Net Assets Net Expenses Investment (Excluding Asset Net Assets, to Income to Waivers, Value, End of Average Average Reimbursements Portfolio End of Total Period Net Net and Expense Turnover Period Return(2) (000) Assets(3) Assets(3) Offset)(3) Rate --------- --------- ----------- --------- ---------- --------------- --------- CORE BOND FUND I Shares Year Ended March 31, 2006 $ 9.86 1.68% $497,730 0.29% 4.01% 0.29% 236% Period Ended March 31, 2005 10.12 0.09 176,537 0.37 3.12 0.37 150 Year Ended October 31, 2004++ 10.30 5.49 56,019 0.45 3.03 0.59 330 Year Ended October 31, 2003 10.31 6.58 33,662 0.45 3.10 0.51 463 Year Ended October 31, 2002 10.00 1.38 80,727 0.45 4.08 0.70 502 Year Ended October 31, 2001 10.34 13.82 52,034 0.45 5.85 0.70 492 A Shares Year Ended March 31, 2006 10.15 1.38 493 0.56 3.67 0.56 236 Period Ended March 31, 2005 10.41 (0.11) 267 0.62 2.78 0.62 150 Year Ended October 31, 2004++ 10.60 5.22 417 0.70 2.80 0.83 330 Year Ended October 31, 2003 10.49 6.24 303 0.68 2.66 0.68 463 Period Ended October 31, 2002(b) 10.08 3.69 166 0.80 3.30 1.11 502 C Shares Year Ended March 31, 2006 9.86 0.76 28 1.24 3.10 1.27 236 Period Ended March 31, 2005 10.12 (0.17) 1 1.01 2.50 1.37 150 Period Ended October 31, 2004++(c) 10.30 0.65 1 1.10 2.71 1.41 330 FLORIDA TAX-EXEMPT BOND FUND I Shares Year Ended March 31, 2006 10.82 2.90 165,341 0.63 3.13 0.65 90 Period Ended March 31, 2005+ 10.90 3.31 157,500 0.67 2.84 0.71 66 Year Ended May 31, 2004 10.93 (2.07) 165,065 0.71 2.82 0.75 56 Year Ended May 31, 2003 11.69 11.13 147,423 0.71 3.54 0.75 62 Year Ended May 31, 2002 10.95 5.88 120,885 0.71 3.65 0.76 91 Year Ended May 31, 2001 10.79 11.84 107,867 0.71 4.19 0.76 59 A Shares Year Ended March 31, 2006 10.83 2.73 5,077 0.80 2.98 0.81 90 Period Ended March 31, 2005+ 10.91 3.24 6,129 0.86 2.65 0.94 66 Year Ended May 31, 2004 10.93 (2.28) 5,906 0.92 2.62 1.13 56 Year Ended May 31, 2003 11.69 10.89 8,191 0.92 3.29 1.13 62 Year Ended May 31, 2002 10.95 5.66 2,935 0.92 3.44 1.37 91 Year Ended May 31, 2001 10.79 11.50 2,747 0.91 4.00 1.38 59 C Shares Year Ended March 31, 2006 10.85 1.95 8,783 1.56 2.22 1.66 90 Period Ended March 31, 2005+ 10.93 2.66 12,347 1.42 2.09 1.73 66 Year Ended May 31, 2004 10.96 (2.68) 19,952 1.42 2.14 1.81 56 Year Ended May 31, 2003 11.71 10.32 40,241 1.42 2.81 1.80 62 Year Ended May 31, 2002 10.97 5.15 21,897 1.42 2.93 1.84 91 Year Ended May 31, 2001 10.81 10.95 12,806 1.41 3.49 1.89 59
See Notes to Financial Highlights and Notes to Financial Statements. 206 FINANCIAL HIGHLIGHTS STI CLASSIC FUNDS Selected Data For a Share of Beneficial Interest Outstanding Throughout the Periods Indicated.
Net Realized and Dividends Distributions Net Asset Unrealized from from Total Value, Net Gains Net Realized Dividends Beginning Investment (Losses) on Total From Investment Capital and of Period Income Investments Operations Income Gains Distributions --------- ---------- ----------- ---------- ---------- ------------- ------------- GEORGIA TAX-EXEMPT BOND FUND I Shares Year Ended March 31, 2006 $10.21 $ 0.36(a) $(0.04)(a) $ 0.32 $(0.36) $(0.01) $(0.37) Period Ended March 31, 2005+ 10.24 0.28 0.20 0.48 (0.27) (0.24) (0.51) Year Ended May 31, 2004 10.89 0.34(a) (0.58)(a) (0.24) (0.34) (0.07) (0.41) Year Ended May 31, 2003 10.29 0.38 0.60 0.98 (0.38) -- (0.38) Year Ended May 31, 2002 10.10 0.39 0.19 0.58 (0.39) -- (0.39) Year Ended May 31, 2001 9.50 0.40 0.60 1.00 (0.40) -- (0.40) A Shares Year Ended March 31, 2006 10.22 0.35(a) (0.03)(a) 0.32 (0.35) (0.01) (0.36) Period Ended March 31, 2005+ 10.25 0.27 0.20 0.47 (0.26) (0.24) (0.50) Year Ended May 31, 2004 10.90 0.32(a) (0.58)(a) (0.26) (0.32) (0.07) (0.39) Year Ended May 31, 2003 10.31 0.35 0.59 0.94 (0.35) -- (0.35) Year Ended May 31, 2002 10.12 0.37 0.19 0.56 (0.37) -- (0.37) Year Ended May 31, 2001 9.51 0.38 0.61 0.99 (0.38) -- (0.38) C Shares Year Ended March 31, 2006 10.22 0.27(a) (0.04)(a) 0.23 (0.27) (0.01) (0.28) Period Ended March 31, 2005+ 10.25 0.22 0.20 0.42 (0.21) (0.24) (0.45) Year Ended May 31, 2004 10.90 0.27(a) (0.58)(a) (0.31) (0.27) (0.07) (0.34) Year Ended May 31, 2003 10.30 0.30 0.60 0.90 (0.30) -- (0.30) Year Ended May 31, 2002 10.11 0.32 0.19 0.51 (0.32) -- (0.32) Year Ended May 31, 2001 9.51 0.33 0.60 0.93 (0.33) -- (0.33) HIGH INCOME FUND I Shares Year Ended March 31, 2006 7.38 0.55 (0.03) 0.52 (0.55) (0.38) (0.93) Period Ended March 31, 2005+ 7.38 0.46 0.21 0.67 (0.46) (0.21) (0.67) Year Ended May 31, 2004 7.16 0.62(a) 0.22(a) 0.84 (0.62) -- (0.62) Year Ended May 31, 2003 7.25 0.61 (0.09) 0.52 (0.61) -- (0.61) Period Ended May 31, 2002(d) 7.37 0.39 (0.12) 0.27 (0.39) -- (0.39) A Shares Year Ended March 31, 2006 7.39 0.53 (0.03) 0.50 (0.53) (0.38) (0.91) Period Ended March 31, 2005+ 7.38 0.44 0.22 0.66 (0.44) (0.21) (0.65) Period Ended May 31, 2004(e) 7.39 0.35(a) (0.01)(a) 0.34 (0.35) -- (0.35) C Shares Year Ended March 31, 2006 7.38 0.49 (0.03) 0.46 (0.49) (0.38) (0.87) Period Ended March 31, 2005+ 7.38 0.42 0.21 0.63 (0.42) (0.21) (0.63) Year Ended May 31, 2004 7.16 0.57(a) 0.22(a) 0.79 (0.57) -- (0.57) Year Ended May 31, 2003 7.25 0.57 (0.09) 0.48 (0.57) -- (0.57) Year Ended May 31, 2002 7.69 0.55 (0.44) 0.11 (0.55) -- (0.55) Year Ended May 31, 2001 7.88 0.55 (0.19) 0.36 (0.55) -- (0.55) Ratio of Expenses to Ratio of Ratio of Average Net Net Net Assets Net Expenses Investment (Excluding Asset to Income to Waivers, Value, Net Assets, Average Average Reimbursements Portfolio End of Total End of Net Net and Expense Turnover Period Return(2) Period (000) Assets(3) Assets(3) Offset)(3) Rate --------- --------- ------------ --------- ---------- --------------- --------- GEORGIA TAX-EXEMPT BOND FUND I Shares Year Ended March 31, 2006 $10.16 3.19% $115,929 0.64% 3.53% 0.66% 43% Period Ended March 31, 2005+ 10.21 4.73 96,503 0.67 3.31 0.71 52 Year Ended May 31, 2004 10.24 (2.18) 98,113 0.71 3.26 0.76 100 Year Ended May 31, 2003 10.89 9.64 98,866 0.71 3.55 0.76 17 Year Ended May 31, 2002 10.29 5.81 91,356 0.71 3.79 0.76 23 Year Ended May 31, 2001 10.10 10.67 85,880 0.71 4.03 0.77 21 A Shares Year Ended March 31, 2006 10.18 3.12 3,711 0.79 3.38 0.81 43 Period Ended March 31, 2005+ 10.22 4.57 2,660 0.86 3.12 0.99 52 Year Ended May 31, 2004 10.25 (2.39) 2,735 0.92 3.06 1.36 100 Year Ended May 31, 2003 10.90 9.29 2,630 0.92 3.34 1.41 17 Year Ended May 31, 2002 10.31 5.58 2,844 0.92 3.58 1.36 23 Year Ended May 31, 2001 10.12 10.56 2,901 0.91 3.83 1.42 21 C Shares Year Ended March 31, 2006 10.17 2.25 9,567 1.57 2.61 1.67 43 Period Ended March 31, 2005+ 10.22 4.09 10,664 1.42 2.56 1.73 52 Year Ended May 31, 2004 10.25 (2.87) 13,351 1.42 2.55 1.84 100 Year Ended May 31, 2003 10.90 8.86 16,591 1.42 2.84 1.84 17 Year Ended May 31, 2002 10.30 5.07 14,269 1.42 3.08 1.84 23 Year Ended May 31, 2001 10.11 9.92 14,079 1.41 3.33 1.89 21 HIGH INCOME FUND I Shares Year Ended March 31, 2006 6.97 7.53 36,764 0.72 7.64 0.82 208 Period Ended March 31, 2005+ 7.38 9.31 51,318 0.73 7.47 0.87 191 Year Ended May 31, 2004 7.38 11.94 71,314 0.76 8.27 0.91 49 Year Ended May 31, 2003 7.16 8.19 100,852 0.78 8.95 0.93 20 Period Ended May 31, 2002(d) 7.25 3.70 28,767 0.82 8.27 0.97 59 A Shares Year Ended March 31, 2006 6.98 7.20 403 1.03 7.36 1.13 208 Period Ended March 31, 2005+ 7.39 9.17 739 1.03 7.34 1.39 191 Period Ended May 31, 2004(e) 7.38 4.61 1,508 1.10 7.80 1.88 49 C Shares Year Ended March 31, 2006 6.97 6.57 36,062 1.62 6.78 1.83 208 Period Ended March 31, 2005+ 7.38 8.69 52,847 1.40 6.78 1.88 191 Year Ended May 31, 2004 7.38 11.23 75,693 1.40 7.62 1.98 49 Year Ended May 31, 2003 7.16 7.52 64,418 1.40 8.43 2.00 20 Year Ended May 31, 2002 7.25 1.46 46,864 1.40 7.35 2.02 59 Year Ended May 31, 2001 7.69 4.74 19,875 1.40 6.88 2.13 10
See Notes to Financial Highlights and Notes to Financial Statements. 207 FINANCIAL HIGHLIGHTS STI CLASSIC FUNDS Selected Data For a Share of Beneficial Interest Outstanding Throughout the Periods Indicated.
Net Realized and Dividends Distributions Net Asset Unrealized from from Total Value, Net Gains Net Realized Dividends Beginning Investment (Losses) on Total From Investment Capital and of Period Income Investments Operations Income Gains Distributions --------- ---------- ----------- ---------- ---------- ------------- ------------- HIGH QUALITY BOND FUND I Shares Year Ended March 31, 2006 $ 9.85 $ 0.37 $(0.22) $ 0.15 $(0.35) $ -- $(0.35) Period Ended March 31, 2005+ 9.84 0.21 0.02 0.23 (0.21) (0.01) (0.22) Period Ended May 31, 2004(e) 10.00 0.12(a) (0.16)(a) (0.04) (0.12) -- (0.12) INTERMEDIATE BOND FUND I Shares Year Ended March 31, 2006 10.08 0.38 (0.21) 0.17 (0.39) (0.01) (0.40) Period Ended March 31, 2005 10.37 0.14 (0.21) (0.07) (0.14) (0.08) (0.22) Year Ended October 31, 2004++ 10.23 0.34 0.14 0.48 (0.34) -- (0.34) Year Ended October 31, 2003 10.12 0.37 0.15 0.52 (0.41) -- (0.41) Year Ended October 31, 2002 10.63 0.47 (0.23) 0.24 (0.50) (0.25) (0.75) Year Ended October 31, 2001 9.96 0.57 0.68 1.25 (0.58) -- (0.58) A Shares Year Ended March 31, 2006 10.08 0.39 (0.25) 0.14 (0.36) (0.01) (0.37) Period Ended March 31, 2005 10.36 0.13 (0.21) (0.08) (0.12) (0.08) (0.20) Period Ended October 31, 2004++(c) 10.32 0.02 0.04 0.06 (0.02) -- (0.02) C Shares Year Ended March 31, 2006 10.08 0.28 (0.21) 0.07 (0.29) (0.01) (0.30) Period Ended March 31, 2005 10.36 0.11 (0.21) (0.10) (0.10) (0.08) (0.18) Period Ended October 31, 2004++(c) 10.32 0.01 0.04 0.05 (0.01) -- (0.01) INVESTMENT GRADE BOND FUND I Shares Year Ended March 31, 2006 10.51 0.42 (0.11) 0.31 (0.42) -- (0.42) Period Ended March 31, 2005+ 10.31 0.29 0.19 0.48 (0.28) -- (0.28) Year Ended May 31, 2004 10.94 0.35(a) (0.60)(a) (0.25) (0.38) -- (0.38) Year Ended May 31, 2003 10.24 0.40 0.76 1.16 (0.46) -- (0.46) Year Ended May 31, 2002 10.23 0.51 0.01 0.52 (0.51) -- (0.51) Year Ended May 31, 2001 9.58 0.61 0.65 1.26 (0.61) -- (0.61) A Shares Year Ended March 31, 2006 10.50 0.38 (0.10) 0.28 (0.38) -- (0.38) Period Ended March 31, 2005+ 10.31 0.26 0.18 0.44 (0.25) -- (0.25) Year Ended May 31, 2004 10.94 0.31(a) (0.60)(a) (0.29) (0.34) -- (0.34) Year Ended May 31, 2003 10.24 0.38 0.74 1.12 (0.42) -- (0.42) Year Ended May 31, 2002 10.23 0.48 0.01 0.49 (0.48) -- (0.48) Year Ended May 31, 2001 9.58 0.57 0.65 1.22 (0.57) -- (0.57) C Shares Year Ended March 31, 2006 10.51 0.31 (0.11) 0.20 (0.31) -- (0.31) Period Ended March 31, 2005+ 10.31 0.21 0.19 0.40 (0.20) -- (0.20) Year Ended May 31, 2004 10.95 0.25(a) (0.60)(a) (0.35) (0.29) -- (0.29) Year Ended May 31, 2003 10.25 0.31 0.76 1.07 (0.37) -- (0.37) Year Ended May 31, 2002 10.24 0.42 0.01 0.43 (0.42) -- (0.42) Year Ended May 31, 2001 9.59 0.53 0.65 1.18 (0.53) -- (0.53) Ratio of Expenses to Ratio of Ratio of Average Net Net Net Assets Net Expenses Investment (Excluding Asset to Income to Waivers, Value, Net Assets, Average Average Reimbursements Portfolio End of Total End of Net Net and Expense Turnover Period Return(2) Period (000) Assets(3) Assets(3) Offset)(3) Rate --------- --------- ------------ --------- ---------- --------------- --------- HIGH QUALITY BOND FUND I Shares Year Ended March 31, 2006 $ 9.65 1.52% $ 48,908 0.40% 3.69% 0.47% 91% Period Ended March 31, 2005+ 9.85 2.30 38,535 0.66 2.51 0.90 290 Period Ended May 31, 2004(e) 9.84 (0.37) 25,506 0.65 2.09 0.92 31 INTERMEDIATE BOND FUND I Shares Year Ended March 31, 2006 9.85 1.76 78,187 0.31 3.88 0.31 154 Period Ended March 31, 2005 10.08 (0.75) 47,981 0.29 3.25 0.29 94 Year Ended October 31, 2004++ 10.37 4.73 35,848 0.45 3.25 0.59 130 Year Ended October 31, 2003 10.23 5.16 28,689 0.45 3.42 0.56 277 Year Ended October 31, 2002 10.12 2.47 40,284 0.45 4.63 0.73 237 Year Ended October 31, 2001 10.63 12.87 26,192 0.45 5.50 0.76 431 A Shares Year Ended March 31, 2006 9.85 1.39 4 0.56 3.83 0.57 154 Period Ended March 31, 2005 10.08 (0.82) 1 0.63 2.84 0.63 94 Period Ended October 31, 2004++(c) 10.36 0.53 1 0.71 2.58 0.71 130 C Shares Year Ended March 31, 2006 9.85 0.74 68 1.24 2.86 1.25 154 Period Ended March 31, 2005 10.08 (0.96) 1 0.91 2.47 1.36 94 Period Ended October 31, 2004++(c) 10.36 0.51 1 1.00 2.22 1.41 130 INVESTMENT GRADE BOND FUND I Shares Year Ended March 31, 2006 10.40 2.94 480,024 0.65 3.91 0.65 171 Period Ended March 31, 2005+ 10.51 4.71 602,995 0.78 3.31 0.80 268 Year Ended May 31, 2004 10.31 (2.31) 578,345 0.82 3.29 0.84 119 Year Ended May 31, 2003 10.94 11.61 821,342 0.81 3.92 0.83 137 Year Ended May 31, 2002 10.24 5.18 886,471 0.81 4.81 0.83 123 Year Ended May 31, 2001 10.23 13.55 860,073 0.81 6.17 0.84 131 A Shares Year Ended March 31, 2006 10.40 2.69 20,210 1.00 3.57 1.00 171 Period Ended March 31, 2005+ 10.50 4.24 23,687 1.21 2.90 1.26 268 Year Ended May 31, 2004 10.31 (2.70) 31,263 1.22 2.90 1.38 119 Year Ended May 31, 2003 10.94 11.16 34,874 1.22 3.45 1.38 137 Year Ended May 31, 2002 10.24 4.81 20,825 1.22 4.40 1.40 123 Year Ended May 31, 2001 10.23 13.09 21,244 1.21 5.77 1.42 131 C Shares Year Ended March 31, 2006 10.40 1.94 13,580 1.63 2.93 1.66 171 Period Ended March 31, 2005+ 10.51 3.90 17,923 1.71 2.39 1.84 268 Year Ended May 31, 2004 10.31 (3.27) 24,327 1.71 2.40 2.00 119 Year Ended May 31, 2003 10.95 10.61 37,810 1.71 3.01 1.97 137 Year Ended May 31, 2002 10.25 4.27 36,200 1.71 3.90 1.96 123 Year Ended May 31, 2001 10.24 12.54 25,791 1.70 5.24 1.99 131
See Notes to Financial Highlights and Notes to Financial Statements. 208 FINANCIAL HIGHLIGHTS STI CLASSIC FUNDS Selected Data For a Share of Beneficial Interest Outstanding Throughout the Periods Indicated.
Net Realized and Dividends Distributions Net Asset Unrealized from from Total Value, Net Gains Net Realized Dividends Beginning Investment (Losses) on Total From Investment Capital and of Period Income Investments Operations Income Gains Distributions --------- ---------- ----------- ---------- ---------- ------------- ------------- INVESTMENT GRADE TAX-EXEMPT BOND FUND I Shares Year Ended March 31, 2006 $11.45 $ 0.33 $ 0.01 $ 0.34 $(0.33) $(0.08) $(0.41) Period Ended March 31, 2005+ 11.44 0.23 0.20 0.43 (0.24) (0.18) (0.42) Year Ended May 31, 2004 12.01 0.27(a) (0.32)(a) (0.05) (0.27) (0.25) (0.52) Year Ended May 31, 2003 11.57 0.30 0.90 1.20 (0.30) (0.46) (0.76) Year Ended May 31, 2002 11.38 0.34 0.46 0.80 (0.34) (0.27) (0.61) Year Ended May 31, 2001 10.67 0.44 0.71 1.15 (0.44) -- (0.44) A Shares Year Ended March 31, 2006 11.46 0.29 0.01 0.30 (0.29) (0.08) (0.37) Period Ended March 31, 2005+ 11.46 0.19 0.19 0.38 (0.20) (0.18) (0.38) Year Ended May 31, 2004 12.03 0.23(a) (0.33)(a) (0.10) (0.22) (0.25) (0.47) Year Ended May 31, 2003 11.58 0.25 0.91 1.16 (0.25) (0.46) (0.71) Year Ended May 31, 2002 11.39 0.29 0.46 0.75 (0.29) (0.27) (0.56) Year Ended May 31, 2001 10.68 0.40 0.71 1.11 (0.40) -- (0.40) C Shares Year Ended March 31, 2006 11.44 0.21 0.01 0.22 (0.21) (0.08) (0.29) Period Ended March 31, 2005+ 11.44 0.14 0.19 0.33 (0.15) (0.18) (0.33) Year Ended May 31, 2004 12.01 0.17(a) (0.32)(a) (0.15) (0.17) (0.25) (0.42) Year Ended May 31, 2003 11.57 0.20 0.90 1.10 (0.20) (0.46) (0.66) Year Ended May 31, 2002 11.38 0.24 0.46 0.70 (0.24) (0.27) (0.51) Year Ended May 31, 2001 10.67 0.34 0.71 1.05 (0.34) -- (0.34) LIMITED DURATION FUND I Shares Year Ended March 31, 2006 9.98 0.35 0.02 0.37 (0.36) -- (0.36) Period Ended March 31, 2005 9.98 0.08 -- 0.08 (0.08) --* (0.08) Year Ended October 31, 2004++ 9.98 0.11 -- 0.11 (0.11) -- (0.11) Year Ended October 31, 2003 10.00 0.11 (0.02) 0.09 (0.11) -- (0.11) Period Ended October 31, 2002(f) 10.00 --* -- --* --* -- --* LIMITED-TERM FEDERAL MORTGAGE SECURITIES FUND I Shares Year Ended March 31, 2006 10.09 0.35 (0.15) 0.20 (0.41) -- (0.41) Period Ended March 31, 2005+ 10.18 0.31 (0.08) 0.23 (0.32) -- (0.32) Year Ended May 31, 2004 10.59 0.24(a) (0.36)(a) (0.12) (0.29) -- (0.29) Year Ended May 31, 2003 10.31 0.29(a) 0.42(a) 0.71 (0.42) (0.01) (0.43) Year Ended May 31, 2002 10.01 0.43 0.32 0.75 (0.43) (0.02) (0.45) Year Ended May 31, 2001 9.62 0.55 0.39 0.94 (0.55) -- (0.55) Ratio of Expenses to Ratio of Ratio of Average Net Net Net Assets Net Expenses Investment (Excluding Asset to Income to Waivers, Value, Net Assets, Average Average Reimbursements Portfolio End of Total End of Net Net and Expense Turnover Period Return(2) Period (000) Assets(3) Assets(3) Offset)(3) Rate --------- --------- ------------ --------- ---------- --------------- --------- INVESTMENT GRADE TAX-EXEMPT BOND FUND I Shares Year Ended March 31, 2006 $11.38 2.92 % $300,986 0.64% 2.84% 0.64% 237% Period Ended March 31, 2005+ 11.45 3.74 259,542 0.77 2.36 0.80 178 Year Ended May 31, 2004 11.44 (0.45) 205,266 0.81 2.33 0.84 242 Year Ended May 31, 2003 12.01 10.80 185,485 0.81 2.57 0.84 329 Year Ended May 31, 2002 11.57 7.15 149,200 0.81 2.93 0.84 311 Year Ended May 31, 2001 11.38 10.93 134,139 0.81 3.93 0.85 285 A Shares Year Ended March 31, 2006 11.39 2.57 16,182 0.99 2.49 0.99 237 Period Ended March 31, 2005+ 11.46 3.28 17,430 1.20 1.93 1.26 178 Year Ended May 31, 2004 11.46 (0.85) 19,086 1.22 1.92 1.36 242 Year Ended May 31, 2003 12.03 10.42 21,756 1.22 2.16 1.36 329 Year Ended May 31, 2002 11.58 6.71 20,436 1.22 2.51 1.36 311 Year Ended May 31, 2001 11.39 10.48 18,601 1.21 3.54 1.37 285 C Shares Year Ended March 31, 2006 11.37 1.92 10,284 1.65 1.85 1.67 237 Period Ended March 31, 2005+ 11.44 2.86 15,612 1.70 1.43 1.82 178 Year Ended May 31, 2004 11.44 (1.33) 22,969 1.70 1.45 1.92 242 Year Ended May 31, 2003 12.01 9.82 32,684 1.70 1.68 1.91 329 Year Ended May 31, 2002 11.57 6.21 24,587 1.70 2.03 1.92 311 Year Ended May 31, 2001 11.38 9.97 20,010 1.69 3.04 1.96 285 LIMITED DURATION FUND I Shares Year Ended March 31, 2006 9.99 3.73 58,887 0.15 3.39 0.15 94 Period Ended March 31, 2005 9.98 0.84 83,315 0.16 2.12 0.16 12 Year Ended October 31, 2004++ 9.98 1.09 129,259 0.20 1.04 0.26 101 Year Ended October 31, 2003 9.98 0.92 146,513 0.20 1.10 0.26 244 Period Ended October 31, 2002(f) 10.00 --(g) 12,298 --(g) --(g) --(g) --(g) LIMITED-TERM FEDERAL MORTGAGE SECURITIES FUND I Shares Year Ended March 31, 2006 9.88 2.04 369,991 0.61 3.41 0.63 81 Period Ended March 31, 2005+ 10.09 2.26 407,543 0.66 3.60 0.71 41 Year Ended May 31, 2004 10.18 (1.10) 435,446 0.70 2.32 0.75 146 Year Ended May 31, 2003 10.59 6.99 320,718 0.70 2.79 0.75 117 Year Ended May 31, 2002 10.31 7.53 164,624 0.70 3.72 0.75 410 Year Ended May 31, 2001 10.01 10.02 107,674 0.70 5.62 0.76 532
See Notes to Financial Highlights and Notes to Financial Statements. 209 FINANCIAL HIGHLIGHTS STI CLASSIC FUNDS Selected Data For a Share of Beneficial Interest Outstanding Throughout the Periods Indicated.
Net Realized and Dividends Distributions Net Asset Unrealized from from Total Value, Net Gains Net Realized Dividends Beginning Investment (Losses) on Total From Investment Capital and of Period Income Investments Operations Income Gains Distributions --------- ---------- ----------- ---------- ---------- ------------- ------------- LIMITED-TERM FEDERAL MORTGAGE SECURITIES FUND A Shares Year Ended March 31, 2006 $10.07 $ 0.30 $(0.11) $ 0.19 $(0.39) $ -- $(0.39) Period Ended March 31, 2005+ 10.16 0.29 (0.08) 0.21 (0.30) -- (0.30) Year Ended May 31, 2004 10.57 0.21(a) (0.35)(a) (0.14) (0.27) -- (0.27) Year Ended May 31, 2003 10.29 0.24(a) 0.44(a) 0.68 (0.39) (0.01) (0.40) Year Ended May 31, 2002 10.00 0.40 0.31 0.71 (0.40) (0.02) (0.42) Year Ended May 31, 2001 9.60 0.53 0.40 0.93 (0.53) -- (0.53) C Shares Year Ended March 31, 2006 10.10 0.23 (0.12) 0.11 (0.32) -- (0.32) Period Ended March 31, 2005+ 10.18 0.25 (0.07) 0.18 (0.26) -- (0.26) Year Ended May 31, 2004 10.59 0.17(a) (0.35)(a) (0.18) (0.23) -- (0.23) Year Ended May 31, 2003 10.31 0.21(a) 0.43(a) 0.64 (0.35) (0.01) (0.36) Year Ended May 31, 2002 10.02 0.37 0.31 0.68 (0.37) (0.02) (0.39) Year Ended May 31, 2001 9.62 0.50 0.40 0.90 (0.50) -- (0.50) MARYLAND MUNICIPAL BOND FUND I Shares Year Ended March 31, 2006 10.27 0.38 (0.04) 0.34 (0.38) (0.09) (0.47) Period Ended March 31, 2005+ 10.27 0.30 0.10 0.40 (0.31) (0.09) (0.40) Year Ended May 31, 2004 10.94 0.36(a) (0.47)(a) (0.11) (0.36) (0.20) (0.56) Year Ended May 31, 2003 10.32 0.37 0.63 1.00 (0.37) (0.01) (0.38) Year Ended May 31, 2002 10.12 0.38 0.20 0.58 (0.38) -- (0.38) Year Ended May 31, 2001 9.46 0.42 0.66 1.08 (0.42) -- (0.42) A Shares Year Ended March 31, 2006(h) 10.32 0.30 (0.07) 0.23 (0.31) (0.09) (0.40) C Shares Year Ended March 31, 2006 10.29 0.28 (0.04) 0.24 (0.28) (0.09) (0.37) Period Ended March 31, 2005+ 10.29 0.21 0.10 0.31 (0.22) (0.09) (0.31) Year Ended May 31, 2004 10.96 0.26(a) (0.47)(a) (0.21) (0.26) (0.20) (0.46) Year Ended May 31, 2003 10.34 0.27 0.63 0.90 (0.27) (0.01) (0.28) Year Ended May 31, 2002 10.14 0.29 0.20 0.49 (0.29) -- (0.29) Year Ended May 31, 2001 9.48 0.33 0.66 0.99 (0.33) -- (0.33) NORTH CAROLINA TAX-EXEMPT BOND FUND I Shares Year Ended March 31, 2006 9.87 0.31 0.03 0.34 (0.31) -- (0.31) Period Ended March 31, 2005+ 9.76 0.25 0.14 0.39 (0.25) (0.03) (0.28) Period Ended May 31, 2004(i) 10.00 0.09 (0.24) (0.15) (0.09) -- (0.09) A Shares Year Ended March 31, 2006 9.87 0.37 0.01 0.38 (0.37) -- (0.37) Period Ended March 31, 2005+(j) 9.97 0.01 (0.10) (0.09) (0.01) -- (0.01) C Shares Year Ended March 31, 2006 9.87 0.30 0.02 0.32 (0.30) -- (0.30) Period Ended March 31, 2005+(j) 9.97 0.01 (0.10) (0.09) (0.01) -- (0.01) Ratio of Expenses to Ratio of Ratio of Average Net Net Net Assets Net Expenses Investment (Excluding Asset to Income to Waivers, Value, Net Assets, Average Average Reimbursements Portfolio End of Total End of Net Net and Expense Turnover Period Return(2) Period (000) Assets(3) Assets(3) Offset)(3) Rate --------- --------- ------------ --------- ---------- --------------- --------- LIMITED-TERM FEDERAL MORTGAGE SECURITIES FUND A Shares Year Ended March 31, 2006 $ 9.87 1.93% $ 4,398 0.83% 3.21% 0.85% 81% Period Ended March 31, 2005+ 10.07 2.07 5,854 0.90 3.47 1.00 41 Year Ended May 31, 2004 10.16 (1.36) 9,495 0.96 2.06 1.17 146 Year Ended May 31, 2003 10.57 6.72 13,668 0.96 2.33 1.20 117 Year Ended May 31, 2002 10.29 7.16 1,578 0.96 3.50 2.06 410 Year Ended May 31, 2001 10.00 9.84 849 0.95 5.39 2.28 532 C Shares Year Ended March 31, 2006 9.89 1.14 20,112 1.50 2.54 1.65 81 Period Ended March 31, 2005+ 10.10 1.81 34,924 1.31 3.04 1.74 41 Year Ended May 31, 2004 10.18 (1.71) 70,000 1.31 1.68 1.82 146 Year Ended May 31, 2003 10.59 6.33 166,211 1.31 1.97 1.80 117 Year Ended May 31, 2002 10.31 6.83 15,930 1.31 2.88 1.98 410 Year Ended May 31, 2001 10.02 9.50 3,452 1.30 4.99 2.60 532 MARYLAND MUNICIPAL BOND FUND I Shares Year Ended March 31, 2006 10.14 3.34 32,699 0.66 3.68 0.68 55 Period Ended March 31, 2005+ 10.27 3.87 31,046 0.64 3.49 0.72 30 Year Ended May 31, 2004 10.27 (1.06) 29,735 0.72 3.39 0.80 15 Year Ended May 31, 2003 10.94 9.85 30,501 0.70 3.47 0.78 31 Year Ended May 31, 2002 10.32 5.80 33,668 0.71 3.69 0.78 45 Year Ended May 31, 2001 10.12 11.59 26,526 0.72 4.16 0.82 42 A Shares Year Ended March 31, 2006(h) 10.15 2.25 502 0.77 3.54 0.78 55 C Shares Year Ended March 31, 2006 10.16 2.30 9,333 1.67 2.69 1.70 55 Period Ended March 31, 2005+ 10.29 3.03 13,197 1.63 2.50 1.74 30 Year Ended May 31, 2004 10.29 (1.97) 18,897 1.64 2.46 1.82 15 Year Ended May 31, 2003 10.96 8.81 29,556 1.64 2.52 1.81 31 Year Ended May 31, 2002 10.34 4.84 23,215 1.64 2.75 1.83 45 Year Ended May 31, 2001 10.14 10.59 12,090 1.63 3.24 1.97 42 NORTH CAROLINA TAX-EXEMPT BOND FUND I Shares Year Ended March 31, 2006 9.90 3.51 41,276 0.68 3.14 0.70 85 Period Ended March 31, 2005+ 9.87 3.97 40,798 0.75 2.78 0.82 32 Period Ended May 31, 2004(i) 9.76 (1.52) 32,757 0.75 2.45 2.30 20 A Shares Year Ended March 31, 2006 9.88 3.85 110 0.66 2.47 0.67 85 Period Ended March 31, 2005+(j) 9.87 (0.89) -- -- 3.84 -- 32 C Shares Year Ended March 31, 2006 9.89 3.23 2 1.58 2.18 1.58 85 Period Ended March 31, 2005+(j) 9.87 (0.90) -- -- 3.70 -- 32
See Notes to Financial Highlights and Notes to Financial Statements. 210 FINANCIAL HIGHLIGHTS STI CLASSIC FUNDS Selected Data For a Share of Beneficial Interest Outstanding Throughout the Periods Indicated.
Net Realized and Dividends Distributions Net Asset Unrealized from from Total Value, Net Gains Net Realized Dividends Beginning Investment (Losses) on Total From Investment Capital and of Period Income Investments Operations Income Gains Distributions --------- ---------- ----------- ---------- ---------- ------------- ------------- SEIX FLOATING RATE HIGH INCOME FUND I Shares Period Ended March 31, 2006 $10.00 $ 0.04 $(0.04) $ -- $(0.04) $ -- $(0.04) SEIX HIGH YIELD FUND I Shares Year Ended March 31, 2006 10.94 0.68 (0.10) 0.58 (0.68) (0.15) (0.83) Period Ended March 31, 2005 11.42 0.29 (0.35) (0.06) (0.29) (0.13) (0.42) Year Ended October 31, 2004++ 11.09 0.72 0.35 1.07 (0.72) (0.02) (0.74) Year Ended October 31, 2003 10.17 0.68 0.92 1.60 (0.68) -- (0.68) Year Ended October 31, 2002 10.40 0.63 (0.20) 0.43 (0.63) (0.03) (0.66) Period Ended October 31, 2001(k) 10.00 0.64 0.36 1.00 (0.60) -- (0.60) A Shares Year Ended March 31, 2006 10.70 0.65 (0.10) 0.55 (0.65) (0.15) (0.80) Period Ended March 31, 2005 11.18 0.28 (0.35) (0.07) (0.28) (0.13) (0.41) Year Ended October 31, 2004++ 10.75 0.56 0.45 1.01 (0.56) (0.02) (0.58) Year Ended October 31, 2003 9.78 0.68 0.82 1.50 (0.53) -- (0.53) Period Ended October 31, 2002(l) 10.00 0.54 (0.22) 0.32 (0.51) (0.03) (0.54) C Shares Year Ended March 31, 2006 10.93 0.58 (0.10) 0.48 (0.58) (0.15) (0.73) Period Ended March 31, 2005 11.42 0.26 (0.36) (0.10) (0.26) (0.13) (0.39) Period Ended October 31, 2004++(c) 11.32 0.04 0.10 0.14 (0.04) -- (0.04) SHORT-TERM BOND FUND I Shares Year Ended March 31, 2006 9.73 0.32 (0.01) 0.31 (0.33) -- (0.33) Period Ended March 31, 2005+ 9.84 0.20 (0.11) 0.09 (0.20) -- (0.20) Year Ended May 31, 2004 10.04 0.24(a) (0.19)(a) 0.05 (0.25) -- (0.25) Year Ended May 31, 2003 10.01 0.33 0.03 0.36 (0.33) -- (0.33) Year Ended May 31, 2002 10.04 0.46 (0.03) 0.43 (0.46) -- (0.46) Year Ended May 31, 2001 9.65 0.56 0.39 0.95 (0.56) -- (0.56) A Shares Year Ended March 31, 2006 9.75 0.30 (0.01) 0.29 (0.31) -- (0.31) Period Ended March 31, 2005+ 9.87 0.19 (0.12) 0.07 (0.19) -- (0.19) Year Ended May 31, 2004 10.07 0.22(a) (0.20)(a) 0.02 (0.22) -- (0.22) Year Ended May 31, 2003 10.04 0.31 0.03 0.34 (0.31) -- (0.31) Year Ended May 31, 2002 10.06 0.44 (0.02) 0.42 (0.44) -- (0.44) Year Ended May 31, 2001 9.67 0.54 0.39 0.93 (0.54) -- (0.54) C Shares Year Ended March 31, 2006 9.75 0.24 (0.01) 0.23 (0.25) -- (0.25) Period Ended March 31, 2005+ 9.86 0.16 (0.11) 0.05 (0.16) -- (0.16) Year Ended May 31, 2004 10.06 0.19(a) (0.20)(a) (0.01) (0.19) -- (0.19) Year Ended May 31, 2003 10.03 0.28 0.03 0.31 (0.28) -- (0.28) Year Ended May 31, 2002 10.06 0.40 (0.03) 0.37 (0.40) -- (0.40) Year Ended May 31, 2001 9.67 0.52 0.39 0.91 (0.52) -- (0.52) Ratio of Expenses to Ratio of Ratio of Average Net Net Net Assets Net Expenses Investment (Excluding Asset to Income to Waivers, Value, Net Assets, Average Average Reimbursements Portfolio End of Total End of Net Net and Expense Turnover Period Return(2) Period (000) Assets(3) Assets(3) Offset)(3) Rate(+) --------- --------- ------------ --------- ---------- --------------- --------- SEIX FLOATING RATE HIGH INCOME FUND I Shares Period Ended March 31, 2006 $ 9.96 0.02% $106,405 0.56% 5.24% 0.80% 9% SEIX HIGH YIELD FUND I Shares Year Ended March 31, 2006 10.69 5.37 1,217,679 0.49 6.20 0.50 95 Period Ended March 31, 2005 10.94 (0.53) 1,391,879 0.51 6.22 0.57 42 Year Ended October 31, 2004++ 11.42 9.97 1,689,327 0.55 6.48 0.64 73 Year Ended October 31, 2003 11.09 16.10 1,057,993 0.55 6.67 0.67 108 Year Ended October 31, 2002 10.17 4.21 82,017 0.55 6.80 1.07 97 Period Ended October 31, 2001(k) 10.40 10.14 4,641 0.55 7.33 3.98 466 A Shares Year Ended March 31, 2006 10.45 5.22 36,291 0.73 5.94 0.73 95 Period Ended March 31, 2005 10.70 (0.64) 9,706 0.78 6.12 0.85 42 Year Ended October 31, 2004++ 11.18 9.73 15,975 0.80 6.22 0.88 73 Year Ended October 31, 2003 10.75 15.72 14,992 0.90 6.45 0.93 108 Period Ended October 31, 2002(l) 9.78 3.29 9,877 0.89 6.53 1.20 97 C Shares Year Ended March 31, 2006 10.68 4.45 5,814 1.39 5.25 1.48 95 Period Ended March 31, 2005 10.93 (0.89) 3,260 1.14 5.46 1.54 42 Period Ended October 31, 2004++(c) 11.42 1.20 1 1.18 6.29 1.41 73 SHORT-TERM BOND FUND I Shares Year Ended March 31, 2006 9.71 3.24 281,282 0.55 3.32 0.57 94 Period Ended March 31, 2005+ 9.73 0.96 288,502 0.66 2.48 0.71 64 Year Ended May 31, 2004 9.84 0.45 282,188 0.70 2.42 0.75 66 Year Ended May 31, 2003 10.04 3.70 302,708 0.70 3.34 0.75 89 Year Ended May 31, 2002 10.01 4.29 305,884 0.70 4.48 0.75 142 Year Ended May 31, 2001 10.04 10.13 215,458 0.70 5.71 0.76 87 A Shares Year Ended March 31, 2006 9.73 3.01 5,062 0.77 3.09 0.79 94 Period Ended March 31, 2005+ 9.75 0.67 5,783 0.89 2.26 1.00 64 Year Ended May 31, 2004 9.87 0.24 5,880 0.91 2.21 1.21 66 Year Ended May 31, 2003 10.07 3.47 5,685 0.91 3.09 1.28 89 Year Ended May 31, 2002 10.04 4.19 5,767 0.91 4.28 1.26 142 Year Ended May 31, 2001 10.06 9.90 4,176 0.90 5.47 1.71 87 C Shares Year Ended March 31, 2006 9.73 2.34 9,559 1.42 2.44 1.59 94 Period Ended March 31, 2005+ 9.75 0.46 15,114 1.26 1.88 1.74 64 Year Ended May 31, 2004 9.86 (0.11) 23,528 1.26 1.87 1.87 66 Year Ended May 31, 2003 10.06 3.11 32,608 1.26 2.74 1.85 89 Year Ended May 31, 2002 10.03 3.75 26,392 1.26 3.89 1.87 142 Year Ended May 31, 2001 10.06 9.60 10,682 1.25 5.09 2.17 87
See Notes to Financial Highlights and Notes to Financial Statements. 211 FINANCIAL HIGHLIGHTS STI CLASSIC FUNDS Selected Data For a Share of Beneficial Interest Outstanding Throughout the Periods Indicated.
Net Realized and Unrealized Dividends Distributions Net Asset Gains from from Total Value, Net (Losses) on Net Realized Dividends Beginning Investment Investments Total From Investment Capital and of Period(1) Income and Options Operations Income Gains Distributions ------------ ---------- ----------- ---------- ---------- ------------- ------------- SHORT-TERM U.S. TREASURY SECURITIES FUND I Shares Year Ended March 31, 2006 $ 9.91 $ 0.28 $(0.11) $ 0.17 $(0.28) $ -- $(0.28) Period Ended March 31, 2005+ 10.11 0.14 (0.11) 0.03 (0.14) (0.09) (0.23) Year Ended May 31, 2004 10.36 0.14(a) (0.13)(a) 0.01 (0.14) (0.12) (0.26) Year Ended May 31, 2003 10.20 0.22 0.22 0.44 (0.22) (0.06) (0.28) Year Ended May 31, 2002 10.13 0.37 0.10 0.47 (0.37) (0.03) (0.40) Year Ended May 31, 2001 9.85 0.49 0.28 0.77 (0.49) -- (0.49) A Shares Year Ended March 31, 2006 9.90 0.26 (0.11) 0.15 (0.26) -- (0.26) Period Ended March 31, 2005+ 10.10 0.13 (0.11) 0.02 (0.13) (0.09) (0.22) Year Ended May 31, 2004 10.35 0.12(a) (0.13)(a) (0.01) (0.12) (0.12) (0.24) Year Ended May 31, 2003 10.19 0.20 0.22 0.42 (0.20) (0.06) (0.26) Year Ended May 31, 2002 10.13 0.35 0.09 0.44 (0.35) (0.03) (0.38) Year Ended May 31, 2001 9.85 0.48 0.28 0.76 (0.48) -- (0.48) C Shares Year Ended March 31, 2006 9.89 0.20 (0.11) 0.09 (0.20) -- (0.20) Period Ended March 31, 2005+ 10.09 0.10 (0.11) (0.01) (0.10) (0.09) (0.19) Year Ended May 31, 2004 10.34 0.10(a) (0.13)(a) (0.03) (0.10) (0.12) (0.22) Year Ended May 31, 2003 10.18 0.17 0.22 0.39 (0.17) (0.06) (0.23) Year Ended May 31, 2002 10.11 0.33 0.10 0.43 (0.33) (0.03) (0.36) Year Ended May 31, 2001 9.83 0.46 0.28 0.74 (0.46) -- (0.46) STRATEGIC INCOME FUND I Shares Year Ended March 31, 2006 10.24 0.43(a) (0.41)(a) 0.02 (0.44) (0.18) (0.62) Period Ended March 31, 2005+ 9.81 0.39(a) 0.49(a) 0.88 (0.39) (0.06) (0.45) Year Ended May 31, 2004 9.99 0.55(a) (0.14)(a) 0.41 (0.53) (0.06) (0.59) Year Ended May 31, 2003 9.80 0.61 0.20 0.81 (0.62) -- (0.62) Period Ended May 31, 2002(m) 10.00 0.27 (0.20) 0.07 (0.27) -- (0.27) A Shares Year Ended March 31, 2006 10.27 0.41(a) (0.41)(a) -- (0.41) (0.18) (0.59) Period Ended March 31, 2005+ 9.82 0.39(a) 0.49(a) 0.88 (0.37) (0.06) (0.43) Period Ended May 31, 2004(n) 9.93 0.33(a) (0.07)(a) 0.26 (0.31) (0.06) (0.37) C Shares Year Ended March 31, 2006 10.24 0.35(a) (0.41)(a) (0.06) (0.35) (0.18) (0.53) Period Ended March 31, 2005+ 9.81 0.37(a) 0.46(a) 0.83 (0.34) (0.06) (0.40) Year Ended May 31, 2004 9.99 0.50(a) (0.14)(a) 0.36 (0.48) (0.06) (0.54) Year Ended May 31, 2003 9.80 0.57 0.19 0.76 (0.57) -- (0.57) Period Ended May 31, 2002(m) 10.00 0.25 (0.20) 0.05 (0.25) -- (0.25) Ratio of Expenses to Ratio of Ratio of Average Net Net Net Assets Net Expenses Investment (Excluding Asset to Income to Waivers, Value, Net Assets, Average Average Reimbursements Portfolio End of Total End of Net Net and Expense Turnover Period Return(2) Period (000) Assets(3) Assets(3) Offset)(3) Rate --------- --------- ------------ --------- ---------- --------------- --------- SHORT-TERM U.S. TREASURY SECURITIES FUND I Shares Year Ended March 31, 2006 $ 9.80 1.70% $ 54,991 0.58% 2.79% 0.63% 151% Period Ended March 31, 2005+ 9.91 0.35 69,935 0.65 1.68 0.71 82 Year Ended May 31, 2004 10.11 0.11 92,371 0.70 1.36 0.76 131 Year Ended May 31, 2003 10.36 4.31 121,617 0.69 2.07 0.75 140 Year Ended May 31, 2002 10.20 4.69 107,169 0.70 3.57 0.76 117 Year Ended May 31, 2001 10.13 8.02 88,398 0.71 4.95 0.78 87 A Shares Year Ended March 31, 2006 9.79 1.52 4,336 0.76 2.60 0.82 151 Period Ended March 31, 2005+ 9.90 0.21 6,349 0.84 1.47 0.95 82 Year Ended May 31, 2004 10.10 (0.06) 12,823 0.86 1.20 1.06 131 Year Ended May 31, 2003 10.35 4.13 15,558 0.86 1.76 1.07 140 Year Ended May 31, 2002 10.19 4.44 4,735 0.86 3.36 1.41 117 Year Ended May 31, 2001 10.13 7.87 2,179 0.85 4.81 1.56 87 C Shares Year Ended March 31, 2006 9.78 0.88 19,958 1.39 1.99 1.65 151 Period Ended March 31, 2005+ 9.89 (0.03) 33,796 1.12 1.22 1.74 82 Year Ended May 31, 2004 10.09 (0.30) 62,232 1.11 0.97 1.82 131 Year Ended May 31, 2003 10.34 3.88 127,757 1.11 1.59 1.79 140 Year Ended May 31, 2002 10.18 4.29 70,720 1.11 3.09 1.81 117 Year Ended May 31, 2001 10.11 7.67 27,861 1.10 4.45 1.96 87 STRATEGIC INCOME FUND I Shares Year Ended March 31, 2006 9.64 0.19 243,102 0.76 4.35 0.79 317 Period Ended March 31, 2005+ 10.24 9.10 196,921 0.86 4.55 0.96 305 Year Ended May 31, 2004 9.81 4.15 98,570 0.90 5.53 1.00 95 Year Ended May 31, 2003 9.99 8.73 61,906 0.91 6.39 1.01 52 Period Ended May 31, 2002(m) 9.80 0.74 43,717 0.94 6.07 1.04 43 A Shares Year Ended March 31, 2006 9.68 (0.01) 1,741 1.10 4.08 1.16 317 Period Ended March 31, 2005+ 10.27 9.04 3,795 1.15 4.59 1.37 305 Period Ended May 31, 2004(n) 9.82 2.59 4,181 1.15 5.15 1.60 95 C Shares Year Ended March 31, 2006 9.65 (0.57) 46,703 1.63 3.53 1.83 317 Period Ended March 31, 2005+ 10.24 8.60 79,792 1.42 4.34 1.98 305 Year Ended May 31, 2004 9.81 3.59 117,216 1.43 4.98 2.03 95 Year Ended May 31, 2003 9.99 8.16 129,965 1.43 5.67 2.04 52 Period Ended May 31, 2002(m) 9.80 0.55 39,490 1.53 5.49 2.07 43
See Notes to Financial Highlights and Notes to Financial Statements. 212 FINANCIAL HIGHLIGHTS STI CLASSIC FUNDS Selected Data For a Share of Beneficial Interest Outstanding Throughout the Periods Indicated.
Net Realized and Dividends Distributions Net Asset Unrealized from from Total Value, Net Gains Net Realized Dividends Beginning Investment (Losses) on Total From Investment Capital and of Period Income Investments Operations Income Gains Distributions ------------ ---------- ----------- ---------- ---------- ------------- ------------- TOTAL RETURN BOND FUND I Shares Year Ended March 31, 2006 $ 9.97 $ 0.38 $(0.25) $ 0.13 $(0.40) $ -- $(0.40) Period Ended March 31, 2005+ 9.81 0.31 0.16 0.47 (0.31) -- (0.31) Period Ended May 31, 2004(o) 10.00 0.19(a) (0.18)(a) 0.01 (0.20) -- (0.20) U.S. GOVERNMENT SECURITIES FUND I Shares Year Ended March 31, 2006 10.42 0.37 (0.20) 0.17 (0.40) -- (0.40) Period Ended March 31, 2005+ 10.35 0.29 0.09 0.38 (0.31) -- (0.31) Year Ended May 31, 2004 10.93 0.31(a) (0.50)(a) (0.19) (0.35) (0.04) (0.39) Year Ended May 31, 2003 10.47 0.44 0.51 0.95 (0.46) (0.03) (0.49) Year Ended May 31, 2002 10.38 0.54 0.26 0.80 (0.54) (0.17) (0.71) Year Ended May 31, 2001 9.86 0.58 0.52 1.10 (0.58) -- (0.58) A Shares Year Ended March 31, 2006 10.41 0.32 (0.17) 0.15 (0.37) -- (0.37) Period Ended March 31, 2005+ 10.35 0.26 0.08 0.34 (0.28) -- (0.28) Year Ended May 31, 2004 10.93 0.27(a) (0.50)(a) (0.23) (0.31) (0.04) (0.35) Year Ended May 31, 2003 10.47 0.40 0.51 0.91 (0.42) (0.03) (0.45) Year Ended May 31, 2002 10.38 0.50 0.26 0.76 (0.50) (0.17) (0.67) Year Ended May 31, 2001 9.86 0.54 0.52 1.06 (0.54) -- (0.54) C Shares Year Ended March 31, 2006 10.41 0.27 (0.19) 0.08 (0.30) -- (0.30) Period Ended March 31, 2005+ 10.35 0.21 0.08 0.29 (0.23) -- (0.23) Year Ended May 31, 2004 10.93 0.22(a) (0.50)(a) (0.28) (0.26) (0.04) (0.30) Year Ended May 31, 2003 10.48 0.34 0.50 0.84 (0.36) (0.03) (0.39) Year Ended May 31, 2002 10.38 0.45 0.27 0.72 (0.45) (0.17) (0.62) Year Ended May 31, 2001 9.86 0.49 0.52 1.01 (0.49) -- (0.49) U.S. GOVERNMENT SECURITIES ULTRA-SHORT BOND FUND(1) I Shares Year Ended March 31, 2006 9.90 0.36 (0.06) 0.30 (0.35) -- (0.35) Period Ended March 31, 2005+ 9.95 0.20 (0.05) 0.15 (0.20) -- (0.20) Year Ended May 31, 2004 10.00 0.15(a) (0.05)(a) 0.10 (0.15) -- (0.15) Year Ended May 31, 2003 9.95 0.20 0.06 0.26 (0.20) (0.01) (0.21) Period Ended May 31, 2002(p) 9.95 0.05 -- 0.05 (0.05) -- (0.05) ULTRA-SHORT BOND FUND(1) I Shares Year Ended March 31, 2006 10.00 0.36 (0.04) 0.32 (0.36) -- (0.36) Period Ended March 31, 2005+ 10.05 0.15 (0.05) 0.10 (0.15) -- (0.15) Year Ended May 31, 2004 10.10 0.15(a) (0.05)(a) 0.10 (0.15) -- (0.15) Year Ended May 31, 2003 10.00 0.20 0.10 0.30 (0.20) --* (0.20) Period Ended May 31, 2002(q) 10.00 0.05 -- 0.05 (0.05) -- (0.05) Ratio of Expenses to Ratio of Ratio of Average Net Net Net Assets Net Expenses Investment (Excluding Asset to Income to Waivers, Value, Net Assets, Average Average Reimbursements Portfolio End of Total End of Net Net and Expense Turnover Period Return(2) Period (000) Assets(3) Assets(3) Offset)(3) Rate --------- --------- ------------ --------- ---------- --------------- --------- TOTAL RETURN BOND FUND I Shares Year Ended March 31, 2006 $ 9.70 1.31% $ 61,966 0.52% 3.88% 0.55% 231% Period Ended March 31, 2005+ 9.97 4.86 57,761 0.58 3.42 0.74 308 Period Ended May 31, 2004(o) 9.81 0.03 15,553 0.56 3.05 0.90 121 U.S. GOVERNMENT SECURITIES FUND I Shares Year Ended March 31, 2006 10.19 1.66 316,475 0.65 3.63 0.65 118 Period Ended March 31, 2005+ 10.42 3.74 319,058 0.77 3.41 0.80 64 Year Ended May 31, 2004 10.35 (1.77) 298,997 0.81 2.95 0.84 240 Year Ended May 31, 2003 10.93 9.25 258,585 0.81 4.00 0.84 150 Year Ended May 31, 2002 10.47 7.90 168,609 0.82 5.09 0.85 262 Year Ended May 31, 2001 10.38 11.41 148,666 0.81 5.66 0.85 207 A Shares Year Ended March 31, 2006 10.19 1.43 3,032 0.99 3.31 0.99 118 Period Ended March 31, 2005+ 10.41 3.32 3,080 1.17 3.17 1.28 64 Year Ended May 31, 2004 10.35 (2.17) 8,484 1.22 2.54 1.52 240 Year Ended May 31, 2003 10.93 8.79 9,333 1.22 3.59 1.45 150 Year Ended May 31, 2002 10.47 7.47 8,483 1.22 4.70 1.40 262 Year Ended May 31, 2001 10.38 10.95 6,617 1.21 5.21 1.83 207 C Shares Year Ended March 31, 2006 10.19 0.76 7,909 1.66 2.60 1.68 118 Period Ended March 31, 2005+ 10.41 2.83 12,229 1.74 2.50 1.85 64 Year Ended May 31, 2004 10.35 (2.67) 18,993 1.73 2.04 1.97 240 Year Ended May 31, 2003 10.93 8.14 39,423 1.73 3.10 1.93 150 Year Ended May 31, 2002 10.48 7.06 31,922 1.73 4.17 1.93 262 Year Ended May 31, 2001 10.38 10.45 21,617 1.72 4.71 2.04 207 U.S. GOVERNMENT SECURITIES ULTRA-SHORT BOND FUND(1) I Shares Year Ended March 31, 2006 9.85 3.12 42,616 0.29 3.41 0.47 126 Period Ended March 31, 2005+ 9.90 1.36 49,623 0.18 2.02 0.71 42 Year Ended May 31, 2004 9.95 1.01 77,360 0.24 1.25 0.77 109 Year Ended May 31, 2003 10.00 2.80 95,277 0.23 1.76 0.76 87 Period Ended May 31, 2002(p) 9.95 0.32 28,138 0.30 2.42 0.83 34 ULTRA-SHORT BOND FUND(1) I Shares Year Ended March 31, 2006 9.96 3.23 245,257 0.30 3.61 0.37 114 Period Ended March 31, 2005+ 10.00 1.22 74,259 0.31 1.89 0.81 44 Year Ended May 31, 2004 10.05 1.01 112,453 0.31 1.50 0.86 83 Year Ended May 31, 2003 10.10 3.16 146,590 0.31 1.84 0.86 56 Period Ended May 31, 2002(q) 10.00 0.30 33,730 0.36 2.44 0.91 30
See Notes to Financial Highlights and Notes to Financial Statements. 213 FINANCIAL HIGHLIGHTS STI CLASSIC FUNDS Selected Data For a Share of Beneficial Interest Outstanding Throughout the Periods Indicated.
Net Realized and Dividends Distributions Net Asset Unrealized from from Total Value, Net Gains Net Realized Dividends Beginning Investment (Losses) on Total From Investment Capital and of Period Income Investments Operations Income Gains Distributions --------- ---------- ----------- ---------- ---------- ------------- ------------- VIRGINIA INTERMEDIATE MUNICIPAL BOND FUND I Shares Year Ended March 31, 2006 $10.11 $ 0.34 $(0.03) $ 0.31 $(0.34) $(0.07) $(0.41) Period Ended March 31, 2005+ 10.15 0.28 0.05 0.33 (0.28) (0.09) (0.37) Year Ended May 31, 2004 10.68 0.34(a) (0.44)(a) (0.10) (0.34) (0.09) (0.43) Year Ended May 31, 2003 10.29 0.36 0.49 0.85 (0.36) (0.10) (0.46) Year Ended May 31, 2002 10.14 0.40 0.15 0.55 (0.40) -- (0.40) Year Ended May 31, 2001 9.58 0.42 0.56 0.98 (0.42) -- (0.42) A Shares Year Ended March 31, 2006 10.11 0.33 (0.03) 0.30 (0.33) (0.07) (0.40) Period Ended March 31, 2005+ 10.15 0.27 0.05 0.32 (0.27) (0.09) (0.36) Year Ended May 31, 2004 10.68 0.33(a) (0.44)(a) (0.11) (0.33) (0.09) (0.42) Year Ended May 31, 2003 10.29 0.36 0.49 0.85 (0.36) (0.10) (0.46) Year Ended May 31, 2002 10.14 0.39 0.16 0.55 (0.40) -- (0.40) Year Ended May 31, 2001 9.59 0.42 0.55 0.97 (0.42) -- (0.42) C Shares Period Ended March 31, 2006(r) 10.27 0.14 (0.19) (0.05) (0.14) (0.07) (0.21) VIRGINIA MUNICIPAL BOND FUND I Shares Year Ended March 31, 2006 10.35 0.37 (0.03) 0.34 (0.37) (0.10) (0.47) Period Ended March 31, 2005+ 10.37 0.31 0.14 0.45 (0.31) (0.16) (0.47) Year Ended May 31, 2004 11.07 0.37(a) (0.47)(a) (0.10) (0.37) (0.23) (0.60) Year Ended May 31, 2003 10.48 0.39 0.62 1.01 (0.39) (0.03) (0.42) Year Ended May 31, 2002 10.29 0.41 0.19 0.60 (0.41) -- (0.41) Year Ended May 31, 2001 9.64 0.45 0.65 1.10 (0.45) -- (0.45) A Shares Year Ended March 31, 2006 10.34 0.35 (0.03) 0.32 (0.36) (0.10) (0.46) Period Ended March 31, 2005+ 10.37 0.30 0.13 0.43 (0.30) (0.16) (0.46) Period Ended May 31, 2004(s) 10.28 0.02(a) 0.09(a) 0.11 (0.02) -- (0.02) C Shares Year Ended March 31, 2006 10.40 0.27 (0.04) 0.23 (0.27) (0.10) (0.37) Period Ended March 31, 2005+ 10.42 0.23 0.14 0.37 (0.23) (0.16) (0.39) Year Ended May 31, 2004 11.13 0.27(a) (0.48)(a) (0.21) (0.27) (0.23) (0.50) Year Ended May 31, 2003 10.53 0.29 0.63 0.92 (0.29) (0.03) (0.32) Year Ended May 31, 2002 10.34 0.31 0.19 0.50 (0.31) -- (0.31) Year Ended May 31, 2001 9.68 0.35 0.66 1.01 (0.35) -- (0.35) Ratio of Expenses to Ratio of Ratio of Average Net Net Net Assets Net Expenses Investment (Excluding Asset to Income to Waivers, Value, Net Assets, Average Average Reimbursements Portfolio End of Total End of Net Net and Expense Turnover Period Return(2) Period (000) Assets(3) Assets(3) Offset)(3) Rate --------- --------- ------------ --------- ---------- --------------- --------- VIRGINIA INTERMEDIATE MUNICIPAL BOND FUND I Shares Year Ended March 31, 2006 $10.01 3.05% $169,743 0.65% 3.33% 0.66% 54% Period Ended March 31, 2005+ 10.11 3.21 176,959 0.71 3.23 0.71 46 Year Ended May 31, 2004 10.15 (1.00) 181,558 0.75 3.23 0.75 26 Year Ended May 31, 2003 10.68 8.43 206,432 0.75 3.45 0.75 30 Year Ended May 31, 2002 10.29 5.52 191,406 0.75 3.86 0.75 33 Year Ended May 31, 2001 10.14 10.39 194,849 0.73 4.23 0.75 32 A Shares Year Ended March 31, 2006 10.01 2.92 5,480 0.79 3.22 0.82 54 Period Ended March 31, 2005+ 10.11 3.14 7,143 0.80 3.16 0.90 46 Year Ended May 31, 2004 10.15 (1.04) 10,566 0.79 3.19 1.04 26 Year Ended May 31, 2003 10.68 8.38 10,484 0.79 3.40 1.07 30 Year Ended May 31, 2002 10.29 5.47 7,257 0.79 3.82 1.11 33 Year Ended May 31, 2001 10.14 10.23 6,197 0.76 4.20 1.11 32 C Shares Period Ended March 31, 2006(r) 10.01 (0.52) 9 1.62 2.35 1.62 54 VIRGINIA MUNICIPAL BOND FUND I Shares Year Ended March 31, 2006 10.22 3.36 51,548 0.68 3.56 0.70 69 Period Ended March 31, 2005+ 10.35 4.41 48,027 0.72 3.59 0.72 39 Year Ended May 31, 2004 10.37 (0.90) 43,491 0.77 3.47 0.77 33 Year Ended May 31, 2003 11.07 9.86 48,102 0.77 3.67 0.77 18 Year Ended May 31, 2002 10.48 5.90 56,586 0.77 3.90 0.77 38 Year Ended May 31, 2001 10.29 11.51 56,573 0.77 4.40 0.78 60 A Shares Year Ended March 31, 2006 10.20 3.11 63 0.86 3.55 0.89 69 Period Ended March 31, 2005+ 10.34 4.19 179 0.88 3.50 2.84 39 Period Ended May 31, 2004(s) 10.37 1.07 129 0.93 3.95 71.10(4) 33 C Shares Year Ended March 31, 2006 10.26 2.23 4,489 1.69 2.56 1.72 69 Period Ended March 31, 2005+ 10.40 3.54 6,534 1.70 2.59 1.75 39 Year Ended May 31, 2004 10.42 (1.90) 9,723 1.70 2.54 1.86 33 Year Ended May 31, 2003 11.13 8.89 16,956 1.70 2.71 1.85 18 Year Ended May 31, 2002 10.53 4.93 13,428 1.70 2.97 1.88 38 Year Ended May 31, 2001 10.34 10.58 7,983 1.69 3.47 2.00 60
See Notes to Financial Highlights and Notes to Financial Statements. 214 FINANCIAL HIGHLIGHTS STI CLASSIC FUNDS Selected Data For a Share of Beneficial Interest Outstanding Throughout the Periods Indicated.
Net Realized Dividends Distributions Net Asset and from from Total Value, Net Unrealized Net Realized Dividends Beginning Investment Gains on Total From Investment Capital and of Period Income Investments Operations Income Gains Distributions --------- ---------- ----------- ---------- ---------- ------------- ------------- PRIME QUALITY MONEY MARKET FUND I Shares Year Ended March 31, 2006 $1.00 $0.03 $ -- $0.03 $(0.03) $ -- $(0.03) Period Ended March 31, 2005 1.00 0.01 -- 0.01 (0.01) -- (0.01) Year Ended May 31, 2004 1.00 0.01 -- 0.01 (0.01) --* (0.01) Year Ended May 31, 2003 1.00 0.01 -- 0.01 (0.01) --* (0.01) Year Ended May 31, 2002 1.00 0.02 -- 0.02 (0.02) -- (0.02) Year Ended May 31, 2001 1.00 0.06 -- 0.06 (0.06) -- (0.06) A Shares Year Ended March 31, 2006 1.00 0.03 -- 0.03 (0.03) -- (0.03) Period Ended March 31, 2005 1.00 0.01 -- 0.01 (0.01) -- (0.01) Year Ended May 31, 2004 1.00 -- -- -- --* --* --* Year Ended May 31, 2003 1.00 0.01 -- 0.01 (0.01) --* (0.01) Year Ended May 31, 2002 1.00 0.02 -- 0.02 (0.02) -- (0.02) Year Ended May 31, 2001 1.00 0.05 -- 0.05 (0.05) -- (0.05) C Shares Year Ended March 31, 2006 1.00 0.03 -- 0.03 (0.03) -- (0.03) Period Ended March 31, 2005 1.00 0.01 -- 0.01 (0.01) -- (0.01) Year Ended May 31, 2004 1.00 -- -- -- --* --* --* Year Ended May 31, 2003 1.00 0.01 -- 0.01 (0.01) --* (0.01) Year Ended May 31, 2002 1.00 0.01 -- 0.01 (0.01) -- (0.01) Year Ended May 31, 2001 1.00 0.05 -- 0.05 (0.05) -- (0.05) TAX-EXEMPT MONEY MARKET FUND I Shares Year Ended March 31, 2006 1.00 0.02 -- 0.02 (0.02) --* (0.02) Period Ended March 31, 2005 1.00 0.01 -- 0.01 (0.01) --* (0.01) Year Ended May 31, 2004 1.00 -- -- -- --* --* --* Year Ended May 31, 2003 1.00 0.01 -- 0.01 (0.01) --* (0.01) Year Ended May 31, 2002 1.00 0.01 -- 0.01 (0.01) --* (0.01) Year Ended May 31, 2001 1.00 0.03 -- 0.03 (0.03) -- (0.03) A Shares Year Ended March 31, 2006 1.00 0.02 -- 0.02 (0.02) --* (0.02) Period Ended March 31, 2005 1.00 0.01 -- 0.01 (0.01) --* (0.01) Year Ended May 31, 2004 1.00 -- -- -- --* --* --* Year Ended May 31, 2003 1.00 0.01 -- 0.01 (0.01) --* (0.01) Year Ended May 31, 2002 1.00 0.01 -- 0.01 (0.01) --* (0.01) Year Ended May 31, 2001 1.00 0.03 -- 0.03 (0.03) -- (0.03) Ratio of Expenses to Ratio of Ratio of Average Net Net Net Assets Net Expenses Investment (Excluding Asset to Income to Waivers, Value, Net Assets, Average Average Reimbursements End of Total End of Net Net and Expense Period Return(2) Period (000) Assets(3) Assets(3) Offset)(3) --------- --------- ------------ --------- ---------- --------------- PRIME QUALITY MONEY MARKET FUND I Shares Year Ended March 31, 2006 $1.00 3.25% $2,976,881 0.58% 3.19% 0.61% Period Ended March 31, 2005 1.00 1.13 3,173,794 0.60 1.34 0.71 Year Ended May 31, 2004 1.00 0.52 3,477,598 0.63 0.52 0.74 Year Ended May 31, 2003 1.00 1.17 4,284,266 0.63 1.14 0.74 Year Ended May 31, 2002 1.00 2.29 3,907,203 0.63 2.22 0.74 Year Ended May 31, 2001 1.00 5.75 3,728,371 0.63 5.57 0.75 A Shares Year Ended March 31, 2006 1.00 3.08 4,011,561 0.74 3.16 0.76 Period Ended March 31, 2005 1.00 0.96 2,124,606 0.80 1.17 0.91 Year Ended May 31, 2004 1.00 0.34 1,851,615 0.81 0.34 0.95 Year Ended May 31, 2003 1.00 0.98 1,925,521 0.81 0.96 0.94 Year Ended May 31, 2002 1.00 2.11 1,887,033 0.81 2.09 0.94 Year Ended May 31, 2001 1.00 5.57 1,927,309 0.80 5.36 0.95 C Shares Year Ended March 31, 2006 1.00 3.01 3,991 0.82 2.81 1.10 Period Ended March 31, 2005 1.00 0.94 10,093 0.83 0.99 1.48 Year Ended May 31, 2004 1.00 0.22 25,444 0.93 0.21 1.59 Year Ended May 31, 2003 1.00 0.54 14,633 1.25 0.53 1.62 Year Ended May 31, 2002 1.00 1.36 12,302 1.54 1.04 1.70 Year Ended May 31, 2001 1.00 4.75 4,051 1.53 4.54 1.92 TAX-EXEMPT MONEY MARKET FUND I Shares Year Ended March 31, 2006 1.00 2.27 1,172,717 0.50 2.25 0.53 Period Ended March 31, 2005 1.00 0.90 936,272 0.51 1.04 0.61 Year Ended May 31, 2004 1.00 0.48 978,548 0.55 0.46 0.64 Year Ended May 31, 2003 1.00 0.81 1,088,415 0.54 0.79 0.64 Year Ended May 31, 2002 1.00 1.38 907,827 0.55 1.39 0.65 Year Ended May 31, 2001 1.00 3.47 1,080,362 0.54 3.40 0.65 A Shares Year Ended March 31, 2006 1.00 2.12 671,164 0.65 2.10 0.68 Period Ended March 31, 2005 1.00 0.78 402,333 0.65 0.92 0.75 Year Ended May 31, 2004 1.00 0.35 274,543 0.67 0.34 0.80 Year Ended May 31, 2003 1.00 0.68 239,451 0.67 0.67 0.79 Year Ended May 31, 2002 1.00 1.26 218,048 0.67 1.25 0.80 Year Ended May 31, 2001 1.00 3.35 256,894 0.67 3.22 0.80
See Notes to Financial Highlights and Notes to Financial Statements. 215 FINANCIAL HIGHLIGHTS STI CLASSIC FUNDS Selected Data For a Share of Beneficial Interest Outstanding Throughout the Periods Indicated.
Net Realized Dividends Distributions Net Asset and from from Total Value, Net Unrealized Net Realized Dividends Beginning Investment Gains on Total From Investment Capital and of Period Income Investments Operations Income Gains Distributions --------- ---------- ----------- ---------- ---------- ------------- ------------- U.S. GOVERNMENT SECURITIES MONEY MARKET FUND I Shares Year Ended March 31, 2006 $1.00 $0.03 $ -- $0.03 $(0.03) $ -- $(0.03) Period Ended March 31, 2005 1.00 0.01 -- 0.01 (0.01) -- (0.01) Year Ended May 31, 2004 1.00 -- -- -- --* -- --* Year Ended May 31, 2003 1.00 0.01 -- 0.01 (0.01) -- (0.01) Year Ended May 31, 2002 1.00 0.02 -- 0.02 (0.02) -- (0.02) Year Ended May 31, 2001 1.00 0.05 -- 0.05 (0.05) -- (0.05) A Shares Year Ended March 31, 2006 1.00 0.03 -- 0.03 (0.03) -- (0.03) Period Ended March 31, 2005 1.00 0.01 -- 0.01 (0.01) -- (0.01) Year Ended May 31, 2004 1.00 -- -- -- --* -- --* Year Ended May 31, 2003 1.00 0.01 -- 0.01 (0.01) -- (0.01) Year Ended May 31, 2002 1.00 0.02 -- 0.02 (0.02) -- (0.02) Year Ended May 31, 2001 1.00 0.05 -- 0.05 (0.05) -- (0.05) U.S. TREASURY MONEY MARKET FUND I Shares Year Ended March 31, 2006 1.00 0.03 -- 0.03 (0.03) -- (0.03) Period Ended March 31, 2005 1.00 0.01 -- 0.01 (0.01) -- (0.01) Year Ended May 31, 2004 1.00 -- -- -- --* --* --* Year Ended May 31, 2003 1.00 0.01 -- 0.01 (0.01) --* (0.01) Year Ended May 31, 2002 1.00 0.02 -- 0.02 (0.02) -- (0.02) Year Ended May 31, 2001 1.00 0.05 -- 0.05 (0.05) -- (0.05) A Shares Year Ended March 31, 2006 1.00 0.03 -- 0.03 (0.03) -- (0.03) Period Ended March 31, 2005 1.00 0.01 -- 0.01 (0.01) -- (0.01) Period Ended May 31, 2004(t) 1.00 -- -- -- --* --* --* Ratio of Expenses to Ratio of Ratio of Average Net Net Net Assets Net Expenses Investment (Excluding Asset to Income to Waivers, Value, Net Assets, Average Average Reimbursements End of Total End of Net Net and Expense Period Return(2) Period (000) Assets(3) Assets(3) Offset)(3) --------- --------- ------------ --------- ---------- --------------- U.S. GOVERNMENT SECURITIES MONEY MARKET FUND I Shares Year Ended March 31, 2006 $1.00 3.07% $ 413,893 0.62% 2.99% 0.65% Period Ended March 31, 2005 1.00 1.03 517,253 0.62 1.24 0.71 Year Ended May 31, 2004 1.00 0.43 615,324 0.66 0.43 0.75 Year Ended May 31, 2003 1.00 1.01 992,560 0.65 1.00 0.74 Year Ended May 31, 2002 1.00 2.25 997,759 0.66 2.17 0.75 Year Ended May 31, 2001 1.00 5.56 805,285 0.65 5.29 0.75 A Shares Year Ended March 31, 2006 1.00 2.91 253,648 0.77 2.91 0.80 Period Ended March 31, 2005 1.00 0.89 230,041 0.78 1.06 0.88 Year Ended May 31, 2004 1.00 0.28 234,100 0.80 0.28 0.92 Year Ended May 31, 2003 1.00 0.86 250,246 0.80 0.86 0.92 Year Ended May 31, 2002 1.00 2.11 210,004 0.80 2.02 0.92 Year Ended May 31, 2001 1.00 5.41 158,087 0.79 5.14 0.93 U.S. TREASURY MONEY MARKET FUND I Shares Year Ended March 31, 2006 1.00 2.99 1,650,172 0.60 2.98 0.63 Period Ended March 31, 2005 1.00 0.99 1,407,783 0.62 1.19 0.71 Year Ended May 31, 2004 1.00 0.37 1,233,565 0.66 0.32 0.75 Year Ended May 31, 2003 1.00 0.88 1,080,779 0.65 0.81 0.74 Year Ended May 31, 2002 1.00 1.96 871,946 0.65 1.90 0.74 Year Ended May 31, 2001 1.00 5.36 733,768 0.66 5.23 0.76 A Shares Year Ended March 31, 2006 1.00 2.84 12,366 0.75 3.12 0.76 Period Ended March 31, 2005 1.00 0.88 303 0.75 0.97 1.48 Period Ended May 31, 2004(t) 1.00 0.15 401 0.75 0.21 3.17(4)
See Notes to Financial Highlights and Notes to Financial Statements. 216 FINANCIAL HIGHLIGHTS STI CLASSIC FUNDS Selected Data For a Share of Beneficial Interest Outstanding Throughout the Periods Indicated.
Net Realized Dividends Distributions Net Asset and from from Total Value, Net Unrealized Net Realized Dividends Beginning Investment Gains on Total From Investment Capital and of Period Income Investments Operations Income Gains Distributions --------- ---------- ----------- ---------- ---------- ------------- ------------- VIRGINIA TAX-FREE MONEY MARKET FUND I Shares Year Ended March 31, 2006 $1.00 $0.02 $ -- $0.02 $(0.02) $ --* $(0.02) Period Ended March 31, 2005 1.00 0.01 -- 0.01 (0.01) --* (0.01) Year Ended May 31, 2004 1.00 0.01 -- 0.01 (0.01) --* (0.01) Year Ended May 31, 2003 1.00 0.01 -- 0.01 (0.01) --* (0.01) Year Ended May 31, 2002 1.00 0.01 -- 0.01 (0.01) --* (0.01) Year Ended May 31, 2001 1.00 0.03 -- 0.03 (0.03) -- (0.03) A Shares Year Ended March 31, 2006 1.00 0.02 -- 0.02 (0.02) --* (0.02) Period Ended March 31, 2005 1.00 0.01 -- 0.01 (0.01) --* (0.01) Year Ended May 31, 2004 1.00 -- -- -- --* --* --* Year Ended May 31, 2003 1.00 0.01 -- 0.01 (0.01) --* (0.01) Year Ended May 31, 2002 1.00 0.01 -- 0.01 (0.01) --* (0.01) Year Ended May 31, 2001 1.00 0.03 -- 0.03 (0.03) -- (0.03) Ratio of Expenses to Ratio of Ratio of Average Net Net Net Assets Net Expenses Investment (Excluding Asset to Income to Waivers, Value, Net Assets, Average Average Reimbursements End of Total End of Net Net and Expense Period Return(2) Period (000) Assets(3) Assets(3) Offset)(3) --------- --------- ------------ --------- ---------- --------------- VIRGINIA TAX-FREE MONEY MARKET FUND I Shares Year Ended March 31, 2006 $1.00 2.33% $ 226,319 0.46% 2.28% 0.46% Period Ended March 31, 2005 1.00 0.94 177,377 0.46 1.07 0.46 Year Ended May 31, 2004 1.00 0.56 173,959 0.50 0.51 0.50 Year Ended May 31, 2003 1.00 0.85 219,701 0.49 0.84 0.49 Year Ended May 31, 2002 1.00 1.44 240,681 0.50 1.45 0.50 Year Ended May 31, 2001 1.00 3.51 226,188 0.50 3.45 0.50 A Shares Year Ended March 31, 2006 1.00 2.16 303,752 0.62 2.12 0.68 Period Ended March 31, 2005 1.00 0.77 197,380 0.66 0.92 0.86 Year Ended May 31, 2004 1.00 0.38 118,339 0.67 0.34 0.90 Year Ended May 31, 2003 1.00 0.67 96,325 0.67 0.66 0.90 Year Ended May 31, 2002 1.00 1.27 99,141 0.67 1.22 0.90 Year Ended May 31, 2001 1.00 3.35 93,004 0.66 3.28 0.91
See Notes to Financial Highlights and Notes to Financial Statements. 217 NOTES TO FINANCIAL HIGHLIGHTS * Amount less than $0.005. (+) Not annualized for periods less than one year. (1) Financial Highlights per share amounts for the U.S. Government Securities Ultra-Short Bond Fund and the Ultra-Short Bond Fund have been restated for a 4.974874:1 reverse stock split and 5:1 reverse stock split, respectively, which occurred on April 1, 2005, for the periods ended March 31, 2005, May 31, 2004, May 31, 2003 and May 31, 2002. (See Note 1.) (2) Total return excludes sales charge. Not annualized for periods less than one year. (3) Annualized for periods less than one year. (4) Ratio reflects the impact of the initial low level of average net assets associated with commencement of operations. (a) Per share data was calculated using the average shares method. (b) Commenced operations on January 25, 2002. (c) Commenced operations on October 11, 2004. (d) Commenced operations on October 3, 2001. (e) Commenced operations on October 27, 2003. (f) Commenced operations on October 25, 2002. (g) Amounts are not meaningful due to the short period of operations. (h) Commenced operations on April 13, 2005. (i) Commenced operations on January 8, 2004. (j) Commenced operations on March 21, 2005. (k) Commenced operations on December 29, 2000. (l) Commenced operations on December 21, 2001. (m) Commenced operations on November 30, 2001. (n) Commenced operations on October 8, 2003. (o) Commenced operations on October 15, 2003. (p) Commenced operations on April 11, 2002. (q) Commenced operations on April 15, 2002. (r) Commenced operations on September 1, 2005. (s) Commenced operations on May 11, 2004. (t) Commenced operations on November 12, 2003. + Effective June 1, 2004, the Funds adopted a change in the amortization and accretion methodology on fixed income securities. The cumulative effect of this change in methodology was immaterial to all Funds except for the Funds noted below:
Change to Ratio of Net Change to Net Investment Income to Average Change to Net Realized and Net Assets Investment Unrealized Gains ------------------------------ Income Per Share (Losses) Per Share I Shares A Shares C Shares ---------------- ------------------ -------- -------- -------- Georgia Tax-Exempt Bond Fund $ 0.01 $(0.01) 0.16% 0.14% 0.14% High Quality Bond Fund 0.01 (0.01) 0.11% Investment Grade Bond Fund 0.01 (0.01) 0.18% 0.14% 0.14% Investment Grade Tax-Exempt Bond Fund (0.01) 0.01 (0.08)% (0.07)% (0.06)% Limited-Term Federal Mortgage Securities Fund 0.04 (0.04) 0.47% 0.42% 0.36% Maryland Municipal Bond Fund (0.01) 0.01 (0.07)% (0.06)% North Carolina Tax-Exempt Bond Fund (0.02) 0.02 (0.20)% -- -- Short-Term Bond Fund 0.01 (0.01) 0.08% 0.07% 0.06% Strategic Income Fund 0.01 (0.01) 0.22% 0.14% 0.13% Total Return Bond Fund 0.01 (0.01) 0.20% U.S. Government Securities Fund 0.02 (0.02) 0.23% 0.11% 0.17% U.S. Government Securities Ultra-Short Bond Fund(1) 0.05 (0.05) 0.24%
++ Effective November 1, 2003, these Funds adopted a change in the amortization and accretion methodology on fixed income securities. The cumulative effect of this change in methodology was immaterial to all Funds except for the Fund noted below:
Change to Ratio of Net Change to Net Investment Income to Average Change to Net Realized and Net Assets Investment Unrealized Gains ------------------------------ Income Per Share (Losses) Per Share I Shares A Shares C Shares ---------------- ------------------ -------- -------- -------- Seix High Yield Fund $ 0.01 $(0.01) 0.06% 0.05% 0.84%
218 NOTES TO FINANCIAL STATEMENTS STI CLASSIC FUNDS March 31, 2006 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 offering 53 funds as of March 31, 2006. The Trust is authorized to issue an unlimited number of shares without par value. The financial statements presented herein are those of the Core Bond Fund (formerly the Classic Institutional Core Bond Fund), Florida Tax-Exempt Bond Fund, Georgia Tax-Exempt Bond Fund, High Income Fund, High Quality Bond Fund (formerly Classic Institutional High Quality Bond Fund), Intermediate Bond Fund (formerly Classic Institutional Intermediate Bond Fund), Investment Grade Bond Fund, Investment Grade Tax-Exempt Bond Fund, Limited Duration Fund (formerly Classic Institutional Limited Duration Fund), Limited-Term Federal Mortgage Securities Fund, Maryland Municipal Bond Fund, North Carolina Tax-Exempt Bond Fund, Seix Floating Rate High Income Fund, Seix High Yield Fund (formerly Seix Institutional High Yield Fund), Short-Term Bond Fund, Short-Term U.S. Treasury Securities Fund, Strategic Income Fund, Total Return Bond Fund (formerly Classic Institutional Total Return Bond Fund), U.S. Government Securities Fund, U.S. Government Securities Ultra-Short Bond Fund (formerly Classic Institutional U.S. Government Securities Super Short Income Plus Fund), Ultra-Short Bond Fund (formerly Classic Institutional Super Short Income Plus Fund), Virginia Intermediate Municipal Bond Fund, Virginia Municipal Bond Fund, Prime Quality Money Market Fund, Tax-Exempt Money Market Fund, U.S. Government Securities Money Market Fund, U.S. Treasury Money Market Fund and Virginia Tax-Free Money Market Fund (each a "Fund" and collectively the "Funds"). The financial statements of the remaining funds are presented separately. The High Quality Bond Fund, Limited Duration Fund, Seix Floating Rate High Income Fund, Total Return Bond Fund, U.S. Government Securities Ultra-Short Bond Fund and Ultra-Short Bond Fund may offer I Shares only (formerly T Shares or Institutional Shares). The Tax-Exempt Money Market Fund, U.S. Government Securities Money Market Fund, U.S. Treasury Money Market Fund and Virginia Tax-Free Money Market Fund offer I Shares and A Shares. The remaining Funds offer I Shares, A Shares and C Shares. The Funds' prospectus provides a description of each Funds' investment objectives, policies and strategies. The assets of each Fund are segregated, and a shareholder's interest is limited to the Fund in which shares are held. Each class of shares has identical rights and privileges except with respect to the fees paid under the Distribution Plan and Distribution and Services Plan, voting rights on matters affecting a single class of shares and sales charges. The A Shares of the Funds (except Limited-Term Federal Mortgage Securities Fund, Short-Term Bond Fund, Short-Term U.S. Treasury Securities Fund, Prime Quality Money Market Fund, Tax-Exempt Money Market Fund, U.S. Government Securities Money Market Fund, U.S. Treasury Money Market Fund and Virginia Tax-Free Money Market Fund) have a maximum sales charge on purchases of 4.75% as a percentage of original purchase price. Limited-Term Federal Mortgage Securities Fund, Short-Term Bond Fund and Short-Term U.S. Treasury Securities Fund A Shares have a maximum sales charge on purchases of 2.50% as a percentage of original purchase price. Certain purchases of A Shares will not be subject to a front-end sales charge but will be subject to a contingent deferred sales charge of 1.00% if redeemed within one year of purchase. The C Shares have a maximum contingent deferred sales charge of 1.00% (2.00% if purchased prior to August 1, 2005) as a percentage of either the original purchase price or the next calculated price after the Funds receive the redemption request, whichever is less, if redeemed within one year of purchase. On April 1, 2005, the U.S. Government Securities Ultra-Short Bond Fund and the Ultra-Short Bond Fund declared a 4.974874:1 and a 5:1 reverse stock split, respectively. The financial statements prepared as of March 31, 2005 should have reflected the retroactive impact of these reverse stock splits for the periods ended March 31, 2005, May 31, 2004, May 31, 2003 and May 31, 2002. The March 31, 2005 financial statements have been restated to properly reflect the effects of the reverse stock splits on a retroactive basis. Under the Trust's organizational documents, its officers and trustees are indemnified against certain liabilities arising out of the performance of their duties to the Trust. In addition, in the normal course of business, the Trust enters into contracts with its vendors and others that provide for general indemnifications. The Trust's 219 NOTES TO FINANCIAL STATEMENTS (continued) STI CLASSIC FUNDS March 31, 2006 maximum exposure under these arrangements is unknown as this would involve future claims that may be made against the Trust. However, based on experience, the Trust expects that risk of loss to be remote. 2. Reorganizations Short-Term Bond Fund -- The Trust entered into an agreement and plan of reorganization on behalf of the Classic Institutional Short-Term Bond Fund and the Short-Term Bond Fund, that provides for the acquisition by the Short-Term Bond Fund of all of the assets, subject to stated liabilities, of the Classic Institutional Short-Term Bond Fund, in exchange for I Shares of the Short-Term Bond Fund, the distribution of such shares to the shareholders of the Classic Institutional Short-Term Bond Fund and the dissolution of the Classic Institutional Short-Term Bond Fund. The reorganization, which qualified as a tax-free exchange for Federal income tax purposes, was approved by the Board of Trustees on August 19, 2005 and completed on October 31, 2005. The following is a summary of shares outstanding, net assets and net asset value per share issued immediately before and after the reorganization:
Before Reorganization After Reorganization ------------------------------------ -------------------- Classic Institutional Short-Term Short-Term Short-Term Bond Fund Bond Fund Bond Fund --------------------- ------------ -------------------- Shares...................................................... 1,257,053 28,079,490 29,360,595 Net Assets.................................................. $12,373,897 $271,213,160 $283,587,057 Net Asset Value: I Shares.................................................. $ 9.84 $ 9.66 $ 9.66 Net unrealized depreciation............................... $ (193,861) $ (3,317,776) $ (3,511,637)
EXCHANGE OF T SHARES TO I SHARES: On August 1, 2005, net assets of the T Shares of the following Funds were exchanged in a tax-free conversion for I Shares and T Shares were no longer offered. The following is a summary of the shares and net assets converted:
Net Assets Shares Converted Converted($) ---------------- ------------ Core Bond Fund.............................................. 14,597,989 148,243,208 High Quality Bond Fund...................................... 1,953,022 19,264,652 Intermediate Bond Fund...................................... 926,342 9,345,826 Limited Duration Fund....................................... 5,127 51,151 Seix High Yield Fund........................................ 408,502 4,530,941 Total Return Bond Fund...................................... 608,146 6,078,728 Ultra-Short Bond Fund....................................... 16,263,821 162,609,401
EXCHANGE OF C SHARES TO I SHARES: On August 1, 2005, net assets of the C Shares of the following Funds were exchanged in a tax-free conversion for I Shares and C Shares were no longer offered. The following is a summary of the shares and net assets converted:
Net Assets Shares Converted Converted($) ---------------- ------------ Limited Duration Fund....................................... 6,526 65,126 U.S. Government Securities Ultra-Short Bond Fund............ 1,544,489 15,279,016
The Trust entered into an agreement and plan of reorganization with the CCMI Funds pursuant to which all of the assets, subject to stated liabilities, of each portfolio of the CCMI Funds were transferred to a 220 NOTES TO FINANCIAL STATEMENTS (continued) STI CLASSIC FUNDS March 31, 2006 corresponding series of the Trust in exchange for a corresponding Class of shares of that series. The reorganization, which qualified as a tax-free exchange for Federal income tax purposes, was effective on March 21, 2005, following approval by shareholders of the CCMI Funds at a special shareholder meeting on March 18, 2005. The following is a summary of shares outstanding, net assets and net asset value per share issued, immediately before and after the reorganization.
Before Reorganization After Reorganization --------------------------------- -------------------- Investment Grade Investment Grade CCMI Bond Fund Bond Fund Bond Fund -------------- ---------------- -------------------- Shares...................................................... 9,529,863 53,108,105 62,246,522 Net Assets.................................................. $96,136,152 $558,612,570 $654,748,722 Net Asset Value: I Shares(a)............................................... $ 10.52 $ 10.52 A Shares.................................................. $ 10.09 Net unrealized appreciation/(depreciation)................ $ (566,749) $ 1,137,114 $ 570,365
- --------------- (a) Effective March 21, 2005 the CCMI Bond Fund A Shares merged into the Investment Grade Bond Fund I Shares.
Before Reorganization After Reorganization -------------------------------- -------------------- CCMI Tax-Exempt North Carolina North Carolina North Carolina Tax-Exempt Tax Exempt Bond Fund Bond Fund Bond Fund(a) --------------- -------------- -------------------- Shares...................................................... 4,130,609 -- 4,130,609 Net Assets.................................................. $41,187,382 $ -- $41,187,382 Net Asset Value: I Shares(b)............................................... $ -- $ 9.97 A Shares.................................................. $ 9.97 Net unrealized depreciation............................... $ (23,376) $ -- $ (23,376)
- --------------- (a) The North Carolina Tax-Exempt Bond Fund retained the financial history of the CCMI Tax-Exempt North Carolina Bond Fund. (b) I Shares were issued in exchange for A Shares in conjunction with the reorganization. The Trust entered into an agreement and plan of reorganization with the Seix Funds, Inc. (the "Seix Funds") pursuant to which all of the assets, subject to stated liabilities, of each portfolio of the Seix Funds were transferred to a corresponding series of the Trust in exchange for a corresponding Class of shares of that series. The reorganization, which qualified as a tax-free exchange for Federal income tax purposes, was completed on October 11, 2004, following approval by shareholders of the Seix Funds at a special shareholder meeting on September 23, 2004. The following is a summary of shares outstanding, net assets and net asset value per share issued immediately before and after the reorganization:
Before Reorganization After Reorganization ----------------------- -------------------- Seix Core Core Bond Core Bond Bond Fund Fund Fund(b) ----------- --------- -------------------- Shares...................................................... 5,493,647 -- 5,493,647 Net Assets.................................................. $56,294,611 $ -- $56,294,611 Net Asset Value: I Shares.................................................. $ 10.25 $ -- $ 10.25 A Shares.................................................. $ -- $ 10.55 P Shares(a)............................................... $ 10.55
- --------------- (a) A Shares were issued in exchange for P Shares in conjunction with the reorganization. (b) The Core Bond Fund retained the financial history of the Seix Core Bond Fund. 221 NOTES TO FINANCIAL STATEMENTS (continued) STI CLASSIC FUNDS March 31, 2006
Before Reorganization After Reorganization --------------------------- -------------------- Seix Intermediate Intermediate Intermediate Bond Fund Bond Fund Bond Fund(a) ------------ ------------ -------------------- Shares...................................................... 3,422,155 -- 3,422,155 Net Assets.................................................. $35,313,376 $ -- $35,313,376 Net Asset Value: I Shares.................................................. $ 10.32 $ -- $ 10.32
- --------------- (a) The intermediate Bond Fund retained the financial history of the Seix Intermediate Bond Fund.
After Before Reorganization Reorganization --------------------------- -------------- Seix High Seix High Seix High Yield Fund Yield Fund Yield Fund(b) -------------- ---------- -------------- Shares...................................................... 142,460,313 -- 142,460,313 Net Assets.................................................. $1,612,034,091 $ -- $1,612,034,091 Net Asset Value: I Shares.................................................. $ 11.32 $ -- $ 11.32 A Shares.................................................. $ -- $ 11.08 P Shares(a)............................................... $ 11.08
- --------------- (a) A Shares were issued in exchange for P Shares in conjunction with the reorganization. (b) The Seix High Yield Fund retained the financial history of the predecessor Seix High Yield Fund.
Before Reorganization After Reorganization ----------------------- -------------------- Seix Limited Limited Duration Duration Limited Duration Fund Fund Fund (a) ------------ -------- -------------------- Shares...................................................... 13,000,589 -- 13,000,589 Net Assets.................................................. $129,705,443 $ -- $129,705,443 Net Asset Value: I Shares.................................................. $ 9.98 $ -- $ 9.98
- --------------- (a) The Limited Duration Fund retained the financial history of the Seix Limited Duration Fund. 3. Significant Accounting Policies The following is a summary of significant accounting policies followed by the Trust in the preparation of its financial statements. These policies are in conformity with accounting principles generally accepted in the United States of America ("GAAP"). The preparation of financial statements in accordance with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of income and expense during the reporting period. The actual results could differ from these estimates. Security Valuation -- Securities listed on a securities exchange, market or automated quotation system for which quotations are readily available (except for securities traded on NASDAQ), including securities traded over the counter, are valued at the last quoted sale price on the primary exchange or market (foreign or domestic) on which they are traded on valuation date (or at approximately 4:00 p.m. Eastern Time if a security's primary exchange is normally open at that time), or, if there is no such reported sale on the valuation date, at the most recent quoted bid price. For securities traded on NASDAQ, the NASDAQ Official Closing Price will be used. If available, debt securities are priced based upon valuations provided by independent, third-party pricing agents. Such values generally reflect the last reported sale price if the security is actively traded. The third-party pricing agents may also value debt securities at an 222 NOTES TO FINANCIAL STATEMENTS (continued) STI CLASSIC FUNDS March 31, 2006 evaluated bid price by employing methodologies that utilize actual market transactions, broker-supplied valuations, or other methodologies designed to identify the market value for such securities. Debt obligations with remaining maturities of sixty days or less may be valued at their amortized cost, which approximates market value. The prices for foreign securities are reported in local currency and converted to U.S. dollars at the exchange rate of such currencies against the U.S. dollar, as of the close of regular trading on the New York Stock Exchange (usually 4:00 p.m. Eastern Time), as provided by an independent pricing service approved by the Funds' Board of Trustees (the "Board"). If a security price cannot be obtained from an independent, third-party pricing agent, the Funds' accounting agent will seek to obtain a bid price from at least one independent broker. The Prime Quality Money Market Fund, Tax-Exempt Money Market Fund, U.S. Government Securities Money Market Fund, U.S. Treasury Money Market Fund and Virginia Tax-Free Money Market Fund (the "Money Market Funds") state investment securities at amortized cost, which approximates market value. Under the amortized cost method, premium or discount, if any, is amortized or accreted, respectively, on a constant basis to the maturity of the security. Securities for which market prices are not "readily available" are valued in accordance with Fair Value Procedures established by the Board. The Funds' Fair Value Procedures are performed and monitored by a Valuation Committee (the "Committee") designated by the Board. Some of the more common reasons which may necessitate that a security be valued using Fair Value Procedures include, but are not limited to: the security's trading has been halted or suspended; the security has been de-listed from a national exchange; the security's primary trading market is temporarily closed at a time when under normal conditions it would be open; or the security's primary pricing source is not able or willing to provide a price. When a security is valued in accordance with the Fair Value Procedures, the Committee determines the value after taking into consideration relevant information reasonably available to the Committee. For securities that principally trade on a foreign market or exchange, a significant gap in time can exist between the time of a particular security's last trade and the time at which a Fund calculates its net asset value. The closing prices of such securities may no longer reflect their market value at the time the Fund calculates net asset value if an event that could materially affect the value of those securities (a "Significant Event") has occurred between the time of the security's last close and the time that the Fund calculates net asset value. A Significant Event may relate to a single issuer or to an entire market sector. If the adviser of a Fund becomes aware of a Significant Event that has occurred with respect to a security or group of securities after the closing of the exchange or market on which the security or securities principally trade, but before the time at which the Fund calculates net asset value, it shall immediately notify the Funds' accounting agent and may preauthorize the Funds' accounting agent to utilize a pricing service authorized by the Board (a "Fair Value Pricing Service") that has been designed to determine a fair value. On a day when a Fair Value Pricing Service is so utilized pursuant to a preauthorization, the Committee need not meet. If the adviser does not pre-authorize the Fund's accounting agent to utilize a Fair Value Pricing Service, the adviser will request that a Committee Meeting be called. In addition, the Funds' accounting agent monitors price movements among certain selected indices, securities and/or groups of securities that may be an indicator that the closing prices received earlier in the day from foreign exchanges or markets may not reflect market value at the time the Fund calculates net asset value. If price movements in a monitored index or security exceed levels established by the Funds ("Trigger Points"), the Funds may use a systematic valuation model provided by an independent third party to fair value their international securities. Security Transactions and Investment Income -- During the period, security transactions are accounted for no later than one business day following the trade date. For financial reporting purposes, however, security transactions are accounted for on trade date on the last business day of the reporting period. Securities sold are determined on a specific identification basis. Interest income is recognized on an accrual basis and includes amortization or accretion of premium or discount. Costs used in determining net realized 223 NOTES TO FINANCIAL STATEMENTS (continued) STI CLASSIC FUNDS March 31, 2006 gains and losses on the sales of investment securities are those of the specific securities sold, adjusted for the accretion or amortization of purchase discounts or premiums during the respective holding period. Repurchase Agreements -- The Funds may purchase instruments from financial institutions, such as banks and broker-dealers, subject to the seller's agreement to repurchase them at an agreed upon time and price ("repurchase agreement"). A third party custodian bank takes possession of the underlying securities ("collateral") of a repurchase agreement, the value of which exceeds the principal amount of the repurchase transaction, including accrued interest. In the event of default on the obligation to repurchase, each Fund has the right to liquidate the collateral and apply the proceeds in satisfaction of the obligation. In the event of default or bankruptcy by the counterparty to the repurchase agreement, realization and/or retention of the collateral or proceeds may be subject to legal proceedings. Options -- Each Fund may purchase and write put and call options on securities or securities indices (traded on U.S. exchanges or over-the-counter markets) and enter into related closing transactions. A Fund must cover all options it writes. For example, when a Fund writes an option on a security, index or foreign currency, it will segregate or earmark liquid assets with the respective Fund's custodian in an amount at least equal to the market value of the option and will maintain such coverage while the option is open. The market value of an option generally reflects the market price of an underlying security. Other principal factors affecting market value include supply and demand, interest rates, the pricing volatility of the underlying security and the time remaining until the expiration date. A Fund purchasing put and call options pays a premium therefor. If price movements in the underlying securities are such that exercise of the options would not be profitable for the Fund, loss of the premium paid may be offset by an increase in the value of the Fund's securities or by a decrease in the cost of acquisition of securities by the Fund. When a Fund writes an option, if the underlying securities do not increase or decrease to a price level that would make the exercise of the option profitable to the holder thereof, the option generally will expire without being exercised and the Fund will realize as profit the premium received for such option. When a call option written by a Fund is exercised, the Fund will be required to sell the underlying securities to the option holder at the strike price, and will not participate in any increase in the price of such securities above the strike price. When a put option written by the Fund is exercised, the Fund will be required to purchase the underlying securities at a price in excess of the market value of such securities. The Short-Term U.S. Treasury Securities Fund had the following transactions in written covered call options during the year ended March 31, 2006:
Number of Contracts Premiums($) ---------- ----------- Balance at April 1, 2005.................................... 5,000,000 14,453 Options closed.............................................. (5,000,000) (14,453) ---------- ------- Balance at March 31, 2006................................... -- -- ========== =======
Securities Purchased on a When-Issued Basis -- Delivery and payment for securities that have been purchased by a Fund on a forward commitment or when-issued basis can take place up to a month or more after the transaction date. During this period, such securities are subject to market fluctuations. The purchase of securities on a when-issued or forward commitment basis may increase the volatility of a Fund's net asset value if the Fund makes such investments while remaining substantially fully invested. TBA Purchase Commitments -- The Funds may enter into "TBA" (To Be Announced) purchase commitments to purchase securities for a fixed price at a future date beyond customary settlement time. TBA purchase commitments may be considered securities in themselves, and involve a risk of loss if the value of the security to be purchased declines prior to settlement date. Unsettled TBA purchase commitments are valued at the current market value of the underlying securities, generally according to the procedures described under "Security Valuation." 224 NOTES TO FINANCIAL STATEMENTS (continued) STI CLASSIC FUNDS March 31, 2006 Foreign Currency Translation -- The books and records of the Strategic Income Fund and Total Return Bond Fund are maintained in U.S. dollars. Foreign currency amounts are translated into U.S. dollars on the following basis: (i) market value of investment securities, other assets and liabilities at the current rate of exchange; and (ii) purchases and sales of investment securities, income and expenses at the relevant rates of exchange prevailing on the respective dates of such transactions. The Strategic Income Fund and Total Return Bond Fund do not isolate the portion of operations resulting from changes in foreign exchange rates on investments from fluctuations arising from changes in market prices of securities held. Such fluctuations are included with the net realized and unrealized gain or loss from investments and foreign currencies. Certain prior year amounts in the Strategic Income Fund have been reclassified to conform to the current year presentation. Forward Foreign Currency Contracts -- The Strategic Income Fund may enter into forward foreign currency contracts as hedges against either specific transactions, fund positions or anticipated fund positions. All commitments are "marked-to-market" daily at the applicable foreign exchange rate, and any resulting unrealized gains or losses are recorded currently. The Fund realizes gains and losses at the time forward contracts are extinguished. Unrealized gains or losses on outstanding positions in forward foreign currency contracts held at the close of the year are recognized as ordinary income or loss for Federal income tax purposes. As of March 31, 2006, the Strategic Income Fund had open forward foreign currency contracts which are shown on the Fund's Schedule of Portfolio Investments. Mortgage Dollar Rolls -- The Funds may enter into mortgage dollar rolls (principally using TBA's) in which a Fund sells mortgage securities for delivery in the current month and simultaneously contracts to repurchase substantially similar securities at an agreed-upon price on a fixed future date. The Funds account for such dollar rolls under the purchases and sales method and receive compensation as consideration for entering into the commitment to repurchase. The Funds must maintain liquid securities having a value not less than the repurchase price (including accrued interest) for such dollar rolls. The market value of the securities that the Funds are required to purchase may decline below the agreed upon repurchase price of those securities. The counterparty receives all principal and interest payments, including pre-payments, made in respect of a security subject to such a contract while it is with the holder. Mortgage dollar rolls may be renewed with a new purchase and repurchase price and a cash settlement made on settlement date without physical delivery of the securities subject to the contract. The Funds engage in dollar rolls for the purpose of enhancing its yield, principally by earning a negotiated fee. As of March 31, 2006, there were no open mortgage dollar rolls. Compensating Balances -- If a Fund has a cash overdraft in excess of $100,000 it is required to deposit an amount equal to 110% of the overdraft in a compensating balance account with its custodian, SunTrust Bank, a wholly owned subsidiary of SunTrust Banks, Inc., on the following business day. If a Fund has a positive cash balance in excess of $100,000 it is allowed to overdraw an amount equal to 90% of the balance from SunTrust Bank on the following business day. All such deposits to, and overdrafts from, the compensating balance account are non-interest bearing and are for a duration of one business day. This does not apply to the Strategic Income Fund. Expenses -- Expenses that are directly related to a specific Fund are charged to that Fund. Class specific expenses, such as distribution fees, if any, are borne by that class. Other operating expenses of the Trust are pro-rated to the Funds on the basis of relative net assets or another appropriate basis. Classes -- Income, non-class specific expenses and realized/unrealized gains and losses are allocated to the respective classes within a Fund on the basis of the relative daily net assets. 225 NOTES TO FINANCIAL STATEMENTS (continued) STI CLASSIC FUNDS March 31, 2006 Dividends and Distributions to Shareholders -- Dividends and distributions to shareholders are recorded on the ex-dividend date. Dividends from net investment income for each of the Funds are declared daily and paid monthly. Any net realized capital gains on sales of securities are distributed to shareholders at least annually. However, to the extent that net realized capital gains can be offset by capital loss carryovers, such gains will not be distributed. Redemption Fees -- For Funds other than the Money Market Funds, a redemption fee of 2% of the value of the shares sold will be imposed on shares redeemed within seven days or less after the date of purchase unless the redemption is excluded under the Funds' Redemption Fee Policy. For the year ended March 31, 2006, the Funds collected redemption fees which are disclosed on the Statements of Changes in Net Assets. Redemption Fees are recorded as an addition to paid-in capital. 4. Agreements and Other Transactions with Affiliates Investment Advisory Agreement -- The Trust and Trusco Capital Management, Inc. (the "Investment Adviser"), a wholly-owned subsidiary of SunTrust Banks, Inc., have entered into advisory agreements. Under revised terms of the agreements dated August 1, 2005, the Funds are charged the following annual fees, which are computed daily and paid monthly based upon average daily net assets. Breakpoints are used in computing the advisory fee. The maximum annual advisory fee is charged on average daily net assets of each Fund (except the Money Market Funds) up to $500 million, a discount of 5% applies on the next $500 million, a discount of 10% applies on amounts over $1 billion. The maximum annual advisory fee will be charged on average daily net assets of the Money Market Funds up to $1 billion, a discount of 5% applies on the next $1.5 billion, a discount of 10% applies on the next $2.5 billion and a discount of 20% applies on amounts over $5 billion. Fee rates for the period August 1, 2005 through March 31, 2006 were as follows:
Maximum Annual Net Annual Advisory Fee(%) Fees Paid(%) --------------- ------------ Core Bond Fund.............................................. 0.25 0.25 Florida Tax-Exempt Bond Fund................................ 0.55 0.55 Georgia Tax-Exempt Bond Fund................................ 0.55 0.55 High Income Fund............................................ 0.60 0.58 High Quality Bond Fund...................................... 0.40 0.40 Intermediate Bond Fund...................................... 0.25 0.25 Investment Grade Bond Fund.................................. 0.50 0.50 Investment Grade Tax-Exempt Bond Fund....................... 0.50 0.50 Limited Duration Fund....................................... 0.10 0.10 Limited-Term Federal Mortgage Securities Fund............... 0.50 0.50 Maryland Municipal Bond Fund................................ 0.55 0.55 North Carolina Tax-Exempt Bond Fund......................... 0.55 0.55 Seix Floating Rate High Income Fund......................... 0.45 0.23 Seix High Yield Fund........................................ 0.43 0.43 Short-Term Bond Fund........................................ 0.40 0.40 Short-Term U.S. Treasury Securities Fund.................... 0.40 0.38 Strategic Income Fund....................................... 0.60 0.60 Total Return Bond Fund...................................... 0.35 0.35 U.S. Government Securities Fund............................. 0.50 0.50 U.S. Government Securities Ultra-Short Bond Fund............ 0.20 0.18 Ultra-Short Bond Fund....................................... 0.22 0.22
226 NOTES TO FINANCIAL STATEMENTS (continued) STI CLASSIC FUNDS March 31, 2006
Maximum Annual Net Annual Advisory Fee(%) Fees Paid(%) --------------- ------------ Virginia Intermediate Municipal Bond Fund................... 0.55 0.55 Virginia Municipal Bond Fund................................ 0.55 0.55 Prime Quality Money Market Fund............................. 0.51 0.50 Tax-Exempt Money Market Fund................................ 0.44 0.44 U.S. Government Securities Money Market Fund................ 0.55 0.55 U.S. Treasury Money Market Fund............................. 0.54 0.54 Virginia Tax-Free Money Market Fund......................... 0.40 0.40
Prior to August 1, 2005, the Funds that were in operation during the period paid the following annual fees which were computed daily and paid monthly based upon average daily net assets. Fee rates for the period April 1, 2005 through July 31, 2005 were as follows:
Maximum Annual Net Annual Advisory Fee(%) Fees Paid(%) --------------- ------------ Core Bond Fund.............................................. 0.25 0.25 Florida Tax-Exempt Bond Fund................................ 0.65 0.61 Georgia Tax-Exempt Bond Fund................................ 0.65 0.60 High Income Fund............................................ 0.80 0.62 High Quality Bond Fund...................................... 0.50 0.43 Intermediate Bond Fund...................................... 0.25 0.25 Investment Grade Bond Fund.................................. 0.74 0.74 Investment Grade Tax-Exempt Bond Fund....................... 0.74 0.74 Limited Duration Fund....................................... 0.10 0.10 Limited-Term Federal Mortgage Securities Fund............... 0.65 0.62 Maryland Municipal Bond Fund................................ 0.65 0.59 North Carolina Tax-Exempt Bond Fund......................... 0.65 0.60 Seix High Yield Fund........................................ 0.50 0.48 Short-Term Bond Fund........................................ 0.65 0.60 Short-Term U.S. Treasury Securities Fund.................... 0.65 0.58 Strategic Income Fund....................................... 0.85 0.76 Total Return Bond Fund...................................... 0.45 0.44 U.S. Government Securities Fund............................. 0.74 0.74 U.S. Government Securities Ultra-Short Bond Fund............ 0.40 0.09 Ultra-Short Bond Fund....................................... 0.50 0.23 Virginia Intermediate Municipal Bond Fund................... 0.65 0.63 Virginia Municipal Bond Fund................................ 0.65 0.63 Prime Quality Money Market Fund............................. 0.65 0.56 Tax-Exempt Money Market Fund................................ 0.55 0.46 U.S. Government Securities Money Market Fund................ 0.65 0.57 U.S. Treasury Money Market Fund............................. 0.65 0.58 Virginia Tax-Free Money Market Fund......................... 0.40 0.40
The Investment Adviser has contractually agreed, effective August 1, 2005 until at least August 1, 2007 (effective February 1, 2006 until at least February 1, 2007 for the Seix Floating Rate High Income Fund), to 227 NOTES TO FINANCIAL STATEMENTS (continued) STI CLASSIC FUNDS March 31, 2006 waive fees and/or reimburse each Fund to the extent necessary to maintain each Fund's Total Operating Expenses, expressed as a percentage of average daily net assets, as noted below:
Total Operating Expenses(%) --------------- North Carolina Tax-Exempt Bond Fund......................... I Shares 0.71 North Carolina Tax-Exempt Bond Fund......................... A Shares 0.86 North Carolina Tax-Exempt Bond Fund......................... C Shares 1.71 Seix Floating Rate High Income Fund......................... I Shares 0.55
Also effective August 1, 2005, the Investment Adviser may retain the difference between the Total Operating Expense and the actual total expense ratio to recapture any of its prior waivers or reimbursements until August 1, 2008. Such repayments shall be made monthly, but only to the extent that such repayments would not cause the annualized total expense ratio to exceed the Total Operating Expense in place at that time. As of March 31, 2006, there were no fee repayments available to be made to the Investment Adviser. During the year ended March 31, 2006, the Investment Adviser also voluntarily waived fees in the Funds in order to maintain a more competitive expense ratio for shareholders. These voluntary waivers will not be recouped by the Investment Adviser in subsequent years. Administration, Fund Accounting and Transfer Agent Agreement -- The Trust and STI Classic Variable Trust are parties to a Master Services Agreement with BISYS Fund Services Ohio, Inc. (the "Administrator"), under which the Administrator provides administrative, fund accounting, transfer agent and shareholder 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: 0.0275% up to $25 billion, 0.0225% on the next $5 billion and 0.0175% on amounts over $30 billion plus an additional class fee of $2,593 per class annually, applicable to each additional class of shares over 145 total classes of shares. The Master Services Agreement provides for the Administrator to pay certain insurance premiums for the Trust and STI Classic Variable Trust, including $300,000 toward the premium for Directors and Officers Liability/Errors and Omissions insurance coverage, and $25,000 toward the premium for Fidelity Bond coverage. The Administrator has agreed, under the terms of the Master Services Agreement, to pay certain legal expenses for the benefit of the Trust and the Classic Variable Trust relating to administrative service matters. The Master Services Agreement further provides for the Administrator to waive a portion of its fees for the benefit of shareholders. Such payments and fee waivers are expected to total approximately $400,000 to $650,000 annually, and will not be recouped by the Administrator in subsequent years. Transfer Agency Agreement -- Prior to December 12, 2005, SunTrust Investment Services ("STIS"), a wholly-owned subsidiary of SunTrust Banks, Inc., provided certain transfer agency account activity processing and servicing to the Trust. STIS received transfer agency service fees based upon a monthly per account charge for the total shareholder accounts at the Trust's transfer agent. These fees are included in the Transfer Agent Fees on the Statements of Operations. Distribution Agreement -- The Trust and BISYS Fund Services Limited Partnership (the "Distributor") are parties to a Distribution Services Agreement. The Distributor will receive no fees for its distribution services under the agreement for the I Shares of any Fund. With respect to the A Shares and C Shares, the Distributor receives amounts, pursuant to a Distribution Plan and (in the case of C Shares) a Distribution and Service Plan, based upon average daily net assets of each respective class, which are computed daily 228 NOTES TO FINANCIAL STATEMENTS (continued) STI CLASSIC FUNDS March 31, 2006 and paid monthly. These fees, expressed as a percentage of average daily net assets, for the period August 1, 2005 through March 31, 2006 are as follows:
Board Approved Board Approved and Charged and Charged A Share C Share Distribution Distribution Fee(%) and Service Fee(%) -------------- ------------------ Core Bond Fund.............................................. 0.25 1.00 Florida Tax-Exempt Bond Fund................................ 0.15 1.00 Georgia Tax-Exempt Bond Fund................................ 0.15 1.00 High Income Fund............................................ 0.30 1.00 Intermediate Bond Fund...................................... 0.25 1.00 Investment Grade Bond Fund.................................. 0.30 1.00 Investment Grade Tax-Exempt Bond Fund....................... 0.30 1.00 Limited-Term Federal Mortgage Securities Fund............... 0.20 1.00 Maryland Municipal Bond Fund................................ 0.15 1.00 North Carolina Tax-Exempt Bond Fund......................... 0.15 1.00 Seix High Yield Fund........................................ 0.25 1.00 Short-Term Bond Fund........................................ 0.20 1.00 Short-Term U.S. Treasury Securities Fund.................... 0.18 1.00 Strategic Income Fund....................................... 0.30 1.00 U.S. Government Securities Fund............................. 0.30 1.00 Virginia Intermediate Municipal Bond Fund................... 0.15 1.00 Virginia Municipal Bond Fund................................ 0.15 1.00 Prime Quality Money Market Fund............................. 0.15 0.25 Tax-Exempt Money Market Fund................................ 0.15 N/A U.S. Government Securities Money Market Fund................ 0.15 N/A U.S. Treasury Money Market Fund............................. 0.15 N/A Virginia Tax-Free Money Market Fund......................... 0.15 N/A
Prior to August 1, 2005, with respect to the A Shares and C Shares, the Distributor received amounts, pursuant to a Distribution Plan and (in the case of C Shares) a Distribution and Service Plan, based upon average daily net assets of each respective class which were computed daily and paid monthly. These fees, expressed as a percentage of average daily net assets, for the Funds that were in operation during the period April 1, 2005 through July 31, 2005 were as follows:
Maximum Maximum A Share C Share Distribution Net Annual Distribution Net Annual Fee(%) Fees Paid(%) and Service Fee(%) Fees Paid(%) ------------ ------------ ------------------ ------------ Core Bond Fund........................................ 0.25 0.25 1.00 0.63 Florida Tax-Exempt Bond Fund.......................... 0.18 0.18 1.00 0.76 Georgia Tax-Exempt Bond Fund.......................... 0.18 0.18 1.00 0.76 High Income Fund...................................... 0.30 0.30 1.00 0.70 Intermediate Bond Fund................................ 0.25 0.25 1.00 0.73 Investment Grade Bond Fund............................ 0.43 0.43 1.00 0.94 Investment Grade Tax-Exempt Bond Fund................. 0.43 0.43 1.00 0.94 Limited Duration Fund................................. N/A N/A 0.25 0.25 Limited-Term Federal Mortgage Securities Fund......... 0.23 0.23 1.00 0.66
229 NOTES TO FINANCIAL STATEMENTS (continued) STI CLASSIC FUNDS March 31, 2006
Maximum Maximum A Share C Share Distribution Net Annual Distribution Net Annual Fee(%) Fees Paid(%) and Service Fee(%) Fees Paid(%) ------------ ------------ ------------------ ------------ Maryland Municipal Bond Fund.......................... 0.15 0.15 1.00 1.00 North Carolina Tax-Exempt Bond Fund................... 0.15 -- 1.00 -- Seix High Yield Fund.................................. 0.25 0.25 1.00 0.65 Short-Term Bond Fund.................................. 0.23 0.23 1.00 0.61 Short-Term U.S. Treasury Securities Fund.............. 0.18 0.18 1.00 0.47 Strategic Income Fund................................. 0.35 0.30 1.00 0.58 U.S. Government Securities Fund....................... 0.38 0.38 1.00 0.97 U.S. Government Securities Ultra-Short Bond Fund...... N/A N/A 0.40 0.30 Virginia Intermediate Municipal Bond Fund............. 0.15 0.09 N/A N/A Virginia Municipal Bond Fund.......................... 0.15 0.15 1.00 1.00 Prime Quality Money Market Fund....................... 0.20 0.20 0.75 0.20 Tax-Exempt Money Market Fund.......................... 0.15 0.15 N/A N/A U.S. Government Securities Money Market Fund.......... 0.17 0.17 N/A N/A U.S. Treasury Money Market Fund....................... 0.15 0.14 N/A N/A Virginia Tax-Free Money Market Fund................... 0.40 0.20 N/A N/A
Shareholder Servicing Agreement -- Prior to August 1, 2005, the Funds were subject to a Shareholder Services Plan whereby each Fund paid SunTrust Bank a monthly shareholder services fee based upon the respective average daily net assets of each class which was computed daily and paid monthly. This fee could be used by SunTrust Bank to provide compensation to service providers that agreed to provide shareholder support services for their customers who own shares of the Fund. SunTrust Bank voluntarily agreed to waive all or a portion of its fees. The Shareholder Services Plan terminated on August 1, 2005. The fees for the applicable Funds for the period April 1, 2005 through July 31, 2005 were as follows:
Maximum Maximum Annual Annual Shareholder Net Annual Shareholder Net Annual Service Fee(%) Fees Paid(%) Service Fee(%) Fees Paid(%) (Institutional Shares) (Institutional Shares) (T Shares) (T Shares) ---------------------- ---------------------- -------------- ------------ Core Bond Fund............................ 0.25 -- 0.25 0.08 High Quality Bond Fund.................... 0.25 0.20 0.40 0.38 Intermediate Bond Fund.................... 0.25 -- 0.20 0.20 Limited Duration Fund..................... 0.25 -- 0.10 0.10 Seix High Yield Fund...................... 0.25 -- 0.15 0.15 Total Return Bond Fund.................... 0.20 0.16 0.35 0.33 U.S. Government Securities Ultra-Short Bond Fund............................... 0.25 -- N/A N/A Ultra-Short Bond Fund..................... 0.25 0.06 0.25 0.25
Custodian Agreements -- SunTrust Bank acts as Custodian for the Funds except for the Strategic Income Fund, which has appointed Brown Brothers Harriman & Co. as Custodian. The funds pay custody fees on the basis of net assets and transaction costs. Other -- Certain officers of the Trust are also officers of the Investment Adviser, the Administrator and/or the Distributor. Such officers receive no fees from the Trust for serving as officers of the Trust. Each of the 230 NOTES TO FINANCIAL STATEMENTS (continued) STI CLASSIC FUNDS March 31, 2006 trustees receives an annual retainer fee and an additional fee for each meeting attended. Trustees receive additional fee for attendance at committee meetings. The current fees are as follows:
Chairman($) Trustee($) ----------- ---------- Annual Retainer............................................. 50,000 40,000 Regular Meeting Fee......................................... 7,500 6,000 Special Meeting Fee......................................... 3,750 3,000 Committee Meeting Fee....................................... 4,500 2,500
Trustees are also reimbursed for certain expenses incurred. The Investment Adviser provides services to the Trust and the STI Classic Variable Trust to ensure compliance with applicable laws and regulations. In addition, the Investment Adviser has designated a dedicated compliance staff and an employee to serve as Chief Compliance Officer. The Investment Adviser received a fee totaling $120,000 for these services during the year ended March 31, 2006. The Investment Adviser has expanded the scope of its compliance services to the Trust and the STI Classic Variable Trust and, effective April 1, 2006, will receive annual fees totaling $475,000 for the fiscal year ending March 31, 2007. In addition, the Administrator provides an employee and staff to assist the Chief Compliance Officer for the Trust, including providing certain related services, and receives an annual fee of $150,000 for providing these services. The fees above are allocated across the assets of the Trust and the STI Classic Variable Trust. For the year ended March 31, 2006, the total amount paid by the Trust related to trustees and compliance services was $961,554. During the period, the Investment Adviser reimbursed the Prime Quality Money Market Fund $17,920 for losses incurred in the disposal of investments in violation of the Fund's investment restrictions. This reimbursement did not have an affect on the Fund's total returns during the period. The Trust has entered into an agreement with SunTrust Robinson Humphrey, a division of SunTrust Capital markets, Inc., which is a direct non-bank subsidiary of SunTrust Banks, Inc., to act as an agent in placing repurchase agreements for the Trust. For the year ended March 31, 2006, the following Funds paid SunTrust Robinson Humphrey, through a reduction in the yield earned by the Funds on those repurchase agreements, the following amounts (in thousands):
Fees($) ------- Core Bond Fund.............................................. 12 Florida Tax-Exempt Bond Fund................................ -- High Income Fund............................................ 3 High Quality Bond Fund...................................... -- Intermediate Bond Fund...................................... 1 Investment Grade Bond Fund.................................. 7 Investment Grade Tax-Exempt Bond Fund....................... 3 Limited Duration Fund....................................... 2 Limited-Term Federal Mortgage Securities Fund............... 7 Seix High Yield Fund........................................ 21 Total Return Bond Fund...................................... 2 U.S. Government Securities Fund............................. 10 U.S. Government Securities Ultra-Short Bond Fund............ 3 Ultra-Short Bond Fund....................................... 4 Prime Quality Money Market Fund............................. 62 U.S. Government Securities Money Market Fund................ 114 U.S. Treasury Money Market Fund............................. 598
Amounts designated as "--" round to less than $1,000. 231 NOTES TO FINANCIAL STATEMENTS (continued) STI CLASSIC FUNDS March 31, 2006 5. Investment Transactions The cost of purchases and the proceeds from sales and maturities of securities, excluding short-term investments and U.S. Government securities, for the year ended March 31, 2006, were as follows (in thousands):
Sales and Purchases($) Maturities($) ------------ ------------- Core Bond Fund.............................................. 90,291 54,585 Florida Tax-Exempt Bond Fund................................ 174,069 154,152 Georgia Tax-Exempt Bond Fund................................ 70,104 49,233 High Income Fund............................................ 166,260 194,909 High Quality Bond Fund...................................... 3,691 4,746 Intermediate Bond Fund...................................... 14,950 9,366 Investment Grade Bond Fund.................................. 124,451 144,014 Investment Grade Tax-Exempt Bond Fund....................... 750,599 736,052 Limited Duration Fund....................................... 21,685 30,500 Maryland Municipal Bond Fund................................ 22,709 25,009 North Carolina Tax-Exempt Bond Fund......................... 34,169 33,351 Seix Floating Rate High Income Fund......................... 115,303 9,146 Seix High Yield Fund........................................ 928,442 1,076,001 Short-Term Bond Fund........................................ 122,970 135,224 Strategic Income Fund....................................... 457,973 414,789 Total Return Bond Fund...................................... 21,765 21,369 U.S. Government Securities Ultra-Short Bond Fund............ 22,398 22,384 Ultra-Short Bond Fund....................................... 178,526 173,731 Virginia Intermediate Municipal Bond Fund................... 94,398 99,893 Virginia Municipal Bond Fund................................ 39,084 38,073
The cost of purchases and proceeds from sales and maturities of long-term U.S. Government securities for the year ended March 31, 2006, were as follows (in thousands):
Sales and Purchases($) Maturities($) ------------ ------------- Core Bond Fund.............................................. 969,214 804,899 High Quality Bond Fund...................................... 45,195 56,598 Intermediate Bond Fund...................................... 109,122 91,540 Investment Grade Bond Fund.................................. 817,333 913,098 Limited Duration Fund....................................... 494 8,607 Limited-Term Federal Mortgage Securities Fund............... 293,271 381,423 Seix High Yield Fund........................................ 250,210 206,394 Short-Term Bond Fund........................................ 156,116 133,732 Short-Term U.S. Treasury Securities Fund.................... 137,575 155,481 Strategic Income Fund....................................... 506,535 504,172 Total Return Bond Fund...................................... 117,495 114,465 U.S. Government Securities Fund............................. 346,251 347,586 U.S. Government Securities Ultra-Short Bond Fund............ 31,153 42,278 Ultra-Short Bond Fund....................................... 94,743 60,317
232 NOTES TO FINANCIAL STATEMENTS (continued) STI CLASSIC FUNDS March 31, 2006 6. Federal Tax Policies and Information It is the policy of each Fund to continue to qualify as a regulated investment company by complying with the provisions available to certain investment companies as defined in applicable sections of the Internal Revenue Code, and to make distributions from net investment income and from net realized gains sufficient to relieve it from all, or substantially all, federal income taxes. Withholding taxes on foreign dividends have been paid or provided for in accordance with each applicable country's tax rules and rates. The amounts of dividends from net investment income and of distributions from net realized gains are determined in accordance with federal income tax regulations, which may differ from GAAP. These "book/tax" differences are either considered temporary or permanent in nature. To the extent these differences are permanent in nature (i.e. foreign currency transactions or paydown reclasses), such amounts are reclassified within the composition of net assets based on their federal tax-basis treatment; temporary differences do not require reclassification. At March 31, 2006, the total cost of securities and the net realized gains or losses on securities sold for Federal income tax purposes were different from amounts reported for financial reporting purposes. These differences were generally due to losses on wash sales, which cannot be used for Federal income tax purposes in the current year and have been deferred for use in future years. The Federal tax cost and aggregate gross unrealized appreciation and depreciation for securities held by the Funds at March 31, 2006 are presented on each Fund's Schedule of Portfolio Investments. The tax character of distributions paid to shareholders during the year ended March 31, 2006 was as follows:
Distributions paid from --------------------------------- Net Investment Net Long Term Total Taxable Tax-Exempt Total Distributions Fund Income($) Capital Gains($) Distributions($) Distributions($) Paid($)* - ---- -------------- ---------------- ---------------- ---------------- ------------------- Core Bond Fund.................... 15,441 89 15,530 -- 15,530 Florida Tax-Exempt Bond Fund...... 21 850 871 5,574 6,445 Georgia Tax-Exempt Bond Fund...... -- 127 127 3,970 4,097 High Income Fund.................. 8,484 1,954 10,438 -- 10,438 High Quality Bond Fund............ 1,937 -- 1,937 -- 1,937 Intermediate Bond Fund............ 2,522 101 2,623 -- 2,623 Investment Grade Bond Fund........ 22,428 -- 22,428 -- 22,428 Investment Grade Tax-Exempt Bond Fund............................ 205 2,161 2,366 8,459 10,825 Limited Duration Fund............. 2,224 1 2,225 -- 2,225 Limited-Term Federal Mortgage Securities Fund................. 15,899 -- 15,899 -- 15,899 Maryland Municipal Bond Fund...... 18 348 366 1,460 1,826 North Carolina Tax-Exempt Bond Fund............................ 4 -- 4 1,205 1,209 Seix Floating Rate High Income Fund............................ 5 -- 5 -- 5 Seix High Yield Fund.............. 89,393 8,360 97,753 -- 97,753 Short-Term Bond Fund.............. 9,805 -- 9,805 -- 9,805 Short-Term U.S. Treasury Securities Fund................. 2,357 -- 2,357 -- 2,357 Strategic Income Fund............. 15,838 2,250 18,088 -- 18,088 Total Return Bond Fund............ 2,555 -- 2,555 -- 2,555 U.S. Government Securities Fund... 13,540 -- 13,540 -- 13,540 U.S. Government Securities Ultra-Short Bond Fund........... 2,019 -- 2,019 -- 2,019 Ultra-Short Bond Fund............. 7,484 -- 7,484 -- 7,484
233 NOTES TO FINANCIAL STATEMENTS (continued) STI CLASSIC FUNDS March 31, 2006
Distributions paid from --------------------------------- Net Investment Net Long Term Total Taxable Tax-Exempt Total Distributions Fund Income($) Capital Gains($) Distributions($) Distributions($) Paid($)* - ---- -------------- ---------------- ---------------- ---------------- ------------------- Virginia Intermediate Municipal Bond Fund....................... -- 1,180 1,180 5,997 7,177 Virginia Municipal Bond Fund...... 44 514 558 1,950 2,508 Prime Quality Money Market Fund... 171,636 -- 171,636 -- 171,636 Tax-Exempt Money Market Fund...... -- 75 75 34,712 34,787 U.S. Government Securities Money Market Fund..................... 20,612 -- 20,612 -- 20,612 U.S. Treasury Money Market Fund... 40,814 -- 40,814 -- 40,814 Virginia Tax-Free Money Market Fund............................ 79 24 103 10,216 10,319
- --------------- * Total distributions paid differ from the Statement of Changes in Net Assets because for tax purposes dividends are recognized when actually paid. Amounts designated as "--" are either $0 or have been rounded to $0. The tax character of distributions paid to shareholders during the period ended March 31, 2005 was as follows:
Distributions paid from --------------------------------- Net Investment Net Long Term Total Taxable Tax-Exempt Total Distributions Fund Income($) Capital Gains($) Distributions($) Distributions($) Paid($)* - ---- -------------- ---------------- ---------------- ---------------- ------------------- Core Bond Fund.................... 1,857 267 2,124 -- 2,124 Florida Tax-Exempt Bond Fund...... 183 1,935 2,118 4,221 6,339 Georgia Tax-Exempt Bond Fund...... -- 2,446 2,446 2,857 5,303 High Income Fund.................. 7,686 3,222 10,908 -- 10,908 High Quality Bond Fund............ 2,841 -- 2,841 -- 2,841 Intermediate Bond Fund............ 556 328 884 -- 884 Investment Grade Bond Fund........ 16,165 -- 16,165 -- 16,165 Investment Grade Tax-Exempt Bond Fund............................ 2,491 1,716 4,207 5,012 9,219 Limited Duration Fund............. 821 3 824 -- 824 Limited-Term Federal Mortgage Securities Fund................. 15,039 -- 15,039 -- 15,039 Maryland Municipal Bond Fund...... -- 385 385 1,244 1,629 North Carolina Tax-Exempt Bond Fund............................ 144 -- 144 953 1,097 Seix High Yield Fund.............. 49,190 7,880 57,070 -- 57,070 Short-Term Bond Fund.............. 6,112 -- 6,112 -- 6,112 Short-Term U.S. Treasury Securities Fund................. 2,056 897 2,953 -- 2,953 Strategic Income Fund............. 8,663 1,163 9,826 -- 9,826 Total Return Bond Fund............ 1,724 -- 1,724 -- 1,724 U.S. Government Securities Fund... 9,498 -- 9,498 -- 9,498 U.S. Government Securities Ultra-Short Bond Fund........... 1,660 -- 1,660 -- 1,660 Ultra-Short Bond Fund............. 3,559 -- 3,559 -- 3,559 Virginia Intermediate Municipal Bond Fund....................... -- 1,613 1,613 5,139 6,752 Virginia Municipal Bond Fund...... -- 840 840 1,558 2,398 Prime Quality Money Market Fund... 47,933 -- 47,933 -- 47,933 Tax-Exempt Money Market Fund...... 221 210 431 10,358 10,789
234 NOTES TO FINANCIAL STATEMENTS (continued) STI CLASSIC FUNDS March 31, 2006
Distributions paid from --------------------------------- Net Investment Net Long Term Total Taxable Tax-Exempt Total Distributions Fund Income($) Capital Gains($) Distributions($) Distributions($) Paid($)* - ---- -------------- ---------------- ---------------- ---------------- ------------------- U.S. Government Securities Money Market Fund..................... 7,574 -- 7,574 -- 7,574 U.S. Treasury Money Market Fund... 11,628 -- 11,628 -- 11,628 Virginia Tax-Free Money Market Fund............................ 77 69 146 2,457 2,603
- --------------- * Total distributions paid differ from the Statement of Changes in Net Assets because for tax purposes dividends are recognized when actually paid. Amounts designated as "--" are either $0 or have been rounded to $0. The tax character of distributions paid to shareholders during the fiscal years ended as noted, were as follows (in thousands):
Distributions paid from --------------------------------- Net Investment Net Long Term Total Taxable Tax-Exempt Total Distributions Fund Income($) Capital Gains($) Distributions($) Distributions($) Paid($)* - ---- -------------- ---------------- ---------------- ---------------- ------------------- Core Bond Fund(a)................. 2,217 141 2,358 -- 2,358 Florida Tax-Exempt Bond Fund(b)... 973 2,705 3,678 5,436 9,114 Georgia Tax-Exempt Bond Fund(b)... 2 827 829 3,770 4,599 High Income Fund(b)............... 14,342 -- 14,342 -- 14,342 High Quality Bond Fund(b)......... 1,056 -- 1,056 -- 1,056 Intermediate Bond Fund(a)......... 973 -- 973 -- 973 Investment Grade Bond Fund(b)..... 26,425 -- 26,425 -- 26,425 Investment Grade Tax-Exempt Bond Fund(b)......................... 3,652 1,555 5,207 5,330 10,537 Limited Duration Fund(a).......... 1,544 -- 1,544 -- 1,544 Limited-Term Federal Mortgage Securities Fund(b).............. 15,208 -- 15,208 -- 15,208 Maryland Municipal Bond Fund(b)... 66 940 1,006 1,615 2,621 North Carolina Tax-Exempt Bond Fund(b)......................... 251 -- 251 -- 251 Seix High Yield Fund(a)........... 89,336 164 89,500 -- 89,500 Short-Term Bond Fund(b)........... 8,004 -- 8,004 -- 8,004 Short-Term U.S. Treasury Securities Fund(b).............. 3,462 1,663 5,125 -- 5,125 Strategic Income Fund(b).......... 11,744 558 12,302 -- 12,302 Total Return Bond Fund(b)......... 607 -- 607 -- 607 U.S. Government Securities Fund(b)......................... 10,576 598 11,174 -- 11,174 U.S. Government Securities Ultra-Short Bond Fund(b)........ 1,906 -- 1,906 -- 1,906 Ultra-Short Bond Fund(b).......... 3,817 -- 3,817 -- 3,817 Virginia Intermediate Municipal Bond Fund(b).................... -- 1,695 1,695 6,527 8,222 Virginia Municipal Bond Fund(b)... 42 1,236 1,278 1,945 3,223 Prime Quality Money Market Fund(b)......................... 26,658 -- 26,658 -- 26,658 Tax-Exempt Money Market Fund(b)... 54 81 135 5,966 6,101 U.S. Government Securities Money Market Fund(b).................. 3,705 -- 3,705 -- 3,705
235 NOTES TO FINANCIAL STATEMENTS (continued) STI CLASSIC FUNDS March 31, 2006
Distributions paid from --------------------------------- Net Investment Net Long Term Total Taxable Tax-Exempt Total Distributions Fund Income($) Capital Gains($) Distributions($) Distributions($) Paid($)* - ---- -------------- ---------------- ---------------- ---------------- ------------------- U.S. Treasury Money Market Fund(b)......................... 4,174 6 4,180 -- 4,180 Virginia Tax-Free Money Market Fund(b)......................... 28 96 124 1,436 1,560
- --------------- (a) For the fiscal year ended October 31, 2004. (b) For the fiscal year ended May 31, 2004. * Total distributions paid differ from the Statement of Changes in Net Assets because for tax purposes dividends are recognized when actually paid. Amounts designated as "--" are either $0 or have been rounded to $0. As of March 31, 2006 the components of accumulated earnings (deficit) on a tax basis were as follows (in thousands):
Undistributed Undistributed Undistributed Accumulated Tax Exempt Ordinary Long Term Accumulated Distributions Capital and Income($) Income($) Capital Gains($) Earnings($) Payable($) Other Losses($)** ------------- ------------- ---------------- ----------- ------------- ----------------- Core Bond Fund............... -- 1,971 -- 1,971 (1,932) (4,259) Florida Tax-Exempt Bond Fund........................ 481 -- 130 611 (492) -- Georgia Tax-Exempt Bond Fund........................ 537 -- 110 647 (399) -- High Income Fund............. -- 464 -- 464 (430) (1,839) High Quality Bond Fund....... -- 250 -- 250 (184) (1,386) Intermediate Bond Fund....... -- 327 -- 327 (301) (596) Investment Grade Bond Fund... -- 2,238 -- 2,238 (2,037) (7,224) Investment Grade Tax-Exempt Bond Fund................... 699 483 -- 1,182 (861) -- Limited Duration Fund........ -- 189 9 198 (188) (5) Limited-Term Federal Mortgage Securities Fund............. -- 1,546 -- 1,546 (1,420) (15,189) Maryland Municipal Bond Fund........................ 84 36 65 185 (128) -- North Carolina Tax-Exempt Bond Fund................... 52 -- -- 52 (116) (173) Seix Floating Rate High Income Fund................. -- 456 -- 456 (434) (23) Seix High Yield Fund......... -- 6,757 -- 6,757 (6,701) (10,101) Short-Term Bond Fund......... -- 1,054 -- 1,054 (984) (9,991) Short-Term U.S. Treasury Securities Fund............. -- 208 -- 208 (208) (1,628) Strategic Income Fund........ -- 1,551 -- 1,551 (1,065) (9,618) Total Return Bond Fund....... -- 243 -- 243 (245) (1,362) U.S. Government Securities Fund........................ -- 1,614 -- 1,614 (1,282) (5,881) U.S. Government Ultra-Short Bond Fund................... -- 172 -- 172 (153) (1,245) Ultra-Short Bond Fund........ -- 1,161 -- 1,161 (893) (1,904) Virginia Intermediate Municipal Bond Fund......... 477 -- -- 477 (512) (123) Virginia Municipal Bond Fund........................ 145 -- -- 145 (170) (28) Prime Quality Money Market Fund........................ -- 23,693 88 23,781 (23,767) -- Tax-Exempt Money Market Fund........................ 4,115 24 5 4,144 (4,115) -- Unrealized Appreciation Total Accumulated (Depreciation)($)*** Earnings (Deficit)($) -------------------- --------------------- Core Bond Fund............... (9,756) (13,976) Florida Tax-Exempt Bond Fund........................ 526 645 Georgia Tax-Exempt Bond Fund........................ 2,473 2,721 High Income Fund............. 872 (933) High Quality Bond Fund....... (1,090) (2,410) Intermediate Bond Fund....... (1,565) (2,135) Investment Grade Bond Fund... (11,230) (18,253) Investment Grade Tax-Exempt Bond Fund................... (210) 111 Limited Duration Fund........ (13) (8) Limited-Term Federal Mortgage Securities Fund............. (6,296) (21,359) Maryland Municipal Bond Fund........................ 549 606 North Carolina Tax-Exempt Bond Fund................... (65) (302) Seix Floating Rate High Income Fund................. (329) (330) Seix High Yield Fund......... (9,748) (19,793) Short-Term Bond Fund......... (4,413) (14,334) Short-Term U.S. Treasury Securities Fund............. (1,218) (2,846) Strategic Income Fund........ (1,658) (10,790) Total Return Bond Fund....... (1,346) (2,710) U.S. Government Securities Fund........................ (6,692) (12,241) U.S. Government Ultra-Short Bond Fund................... (233) (1,459) Ultra-Short Bond Fund........ (1,050) (2,686) Virginia Intermediate Municipal Bond Fund......... 1,554 1,396 Virginia Municipal Bond Fund........................ 931 878 Prime Quality Money Market Fund........................ -- 14 Tax-Exempt Money Market Fund........................ -- 29
236 NOTES TO FINANCIAL STATEMENTS (continued) STI CLASSIC FUNDS March 31, 2006
Undistributed Undistributed Undistributed Accumulated Tax Exempt Ordinary Long Term Accumulated Distributions Capital and Income($) Income($) Capital Gains($) Earnings($) Payable($) Other Losses($)** ------------- ------------- ---------------- ----------- ------------- ----------------- U.S. Government Securities Money Market Fund........... -- 2,249 -- 2,249 (2,249) -- U.S. Treasury Money Market Fund........................ -- 5,298 -- 5,298 (5,237) (209) Virginia Tax-Free Money Market Fund................. 1,120 4 -- 1,124 (1,115) -- Unrealized Appreciation Total Accumulated (Depreciation)($)*** Earnings (Deficit)($) -------------------- --------------------- U.S. Government Securities Money Market Fund........... -- -- U.S. Treasury Money Market Fund........................ (2) (150) Virginia Tax-Free Money Market Fund................. -- 9
- --------------- ** As of the latest tax year end of March 31, 2006, the following Funds had net capital loss carryovers to offset future net capital gains, if any, to the extent provided by the Treasury regulations (in thousands). To the extent that these carryovers are used to offset future gains, it is probable that the gains so offset will not be distributed to shareholders.
Expires ----------------------------------------------- 2009($) 2011($) 2012($) 2013($) 2014($) ------- ------- ------- ------- ------- High Quality Bond Fund...................................... -- -- -- 951 -- Intermediate Bond Fund...................................... -- -- -- -- 86 Investment Grade Bond Fund.................................. 7,224 -- -- -- -- Limited-Term Federal Mortgage Securities Fund............... -- -- 5,162 3,272 5,209 North Carolina Tax-Exempt Bond Fund......................... -- -- -- -- 170 Seix High Yield Fund........................................ -- -- -- -- 5,154 Short-Term Bond Fund........................................ 352 9,216 22 354 47 Short-Term U.S. Treasury Securities Fund.................... -- -- -- 246 907 Total Return Bond Fund...................................... -- -- 161 573 -- U.S. Government Securities Fund............................. -- -- 2,698 508 251 U.S. Government Ultra-Short Bond Fund....................... -- -- 518 393 272 Ultra-Short Bond Fund....................................... -- -- 588 548 573 U.S. Treasury Money Market Fund............................. -- -- -- 165 42
As of March 31, 2006, the Short-Term Bond Fund has additional capital loss carryforwards, subject to any applicable limitations on availability, to offset future gains, if any, as the successor of a merger with the Classic Institutional Short-Term Bond Fund. These amounts are $22 and $353 expiring in 2012 and 2013, respectively, in thousands. During the year ended March 31, 2006, the Core Bond Fund, Florida Tax-Exempt Bond Fund, High Quality Bond Fund, Intermediate Bond Fund, Investment Grade Bond Fund, Limited Duration Fund, Limited-Term Federal Mortgage Securities Fund, North Carolina Tax-Exempt Fund, Seix Floating Rate High Income Fund, Seix High Yield Fund, Short-Term Bond Fund, Short-Term U.S. Treasury Securities Fund, Total Return Bond Fund, U.S. Government Securities Fund, U.S. Government Securities Ultra-Short Bond Fund, Ultra-Short Bond Fund, Prime Quality Money Market Fund and U.S. Treasury Money Market Fund utilized $269, $1, $19, $86, $6,129, $8, $5,209, $170, $19, $5,154, $47, $907, $57, $251, $272, $573, $17 and $42 in capital loss carryforwards, respectively, in thousands. Net Capital losses incurred after October 31, and within the taxable year are deemed to arise on the first business day of the Funds' next taxable year. The Core Bond Fund, High Income Fund, High Quality Bond Fund, Intermediate Bond Fund, Limited Duration Fund, Limited-Term Federal Mortgage Securities Fund, North Carolina Tax-Exempt Fund, Seix Floating Rate High Income Fund, Seix High Yield Fund, Short-Term U.S. Treasury Securities Fund, Strategic Income Fund, Total Return Bond Fund, U.S. Government Securities Fund, U.S. Government Securities Ultra-Short Bond Fund, Ultra-Short Bond Fund, Virginia Intermediate Municipal Bond Fund, Virginia Municipal Bond Fund and U.S. Treasury Money Market Fund have incurred and will elect to defer $4,259, $1,839, $435, $510, $5, $1,546, $3, $23, $4,947, $475, $9,618, $628, $2,424, $62, $195, $123, $28 and $2, respectively, in thousands, in capital losses. *** The differences between book-basis and tax-basis unrealized appreciation (depreciation) is attributable primarily to: tax deferral of losses on wash sales, the difference between book and tax amortization methods for premium and market discount, the realization for tax purposes of unrealized gains/losses on investments in passive foreign investment companies, and the return of capital adjustments from real estate investment trusts. Amounts designated as "--" are either $0 or have been rounded to $0. 7. Risks The prices of the Funds' fixed income securities respond to economic developments, particularly interest rate changes, as well as to perceptions about the creditworthiness of individual issuers, including governments. Generally, the Funds' fixed income securities will decrease in value if interest rates rise and vice versa, and the volatility of lower-rated securities is even greater than that of higher-rated securities. Also, longer-term securities are generally more volatile, so the average maturity or duration of these securities affects risk. 237 NOTES TO FINANCIAL STATEMENTS (continued) STI CLASSIC FUNDS March 31, 2006 The High Income, Seix High Yield and Strategic Income Funds invest in high yield corporate, government, and other debt instruments of U.S. and non-U.S. issuers. High yield securities involve greater risk of default or downgrade and are more volatile than investment grade securities. The Strategic Income Fund and Total Return Bond Fund invest in securities of foreign issuers in various countries. Investments in securities of foreign issuers carry certain risks not ordinarily associated with investments in securities of U.S. issuers. These risks include future political and economic developments, and the possible imposition of exchange controls or other foreign governmental laws and restrictions. In addition, with respect to certain countries, there is a possibility of expropriation of assets, confiscatory taxation, political or social instability or diplomatic developments, which could adversely affect investments in those countries. Emerging market countries are countries that the World Bank or the United Nations considers to be emerging or developing. Emerging markets may be more likely to experience political turmoil or rapid changes in market or economic conditions than more developed countries. In addition, the financial stability of issuers, including governments, in emerging market countries may be more precarious than in other countries. As a result, there will tend to be a decreased risk of price volatility associated with the Fund's investments in emerging market countries, which may be magnified by currency fluctuations relative to the U.S. dollar. The Florida Tax-Exempt Bond, Georgia Tax-Exempt Bond, Maryland Municipal Bond, North Carolina Tax-Exempt Bond, Virginia Intermediate Municipal Bond, Virginia Municipal Bond and Virginia Tax-Free Money Market Funds' concentrations of investments in securities of issuers located in a specific region subjects each Fund to the economic and government policies of that region. The Core Bond, High Quality Bond, Intermediate Bond, Investment Grade Bond, Limited Duration, Limited-Term Federal Mortgage Securities, Short-Term Bond, Total Return Bond, U.S. Government Securities, U.S. Government Securities Ultra-Short Bond and Ultra-Short Bond Funds invest in securities whose value is derived from an underlying pool of mortgages or consumer loans. Prepayment of these loans shortens the stated maturity of these respective obligations and may result in a loss of premium, if any has been paid. Estimates of such prepayments are used to calculate expected maturity dates and a Fund's average duration. The Money Market Funds invest primarily in money market instruments maturing in 397 days or less whose ratings are within one of the two highest ratings categories assigned by a nationally recognized statistical rating organization, or, if not rated, are believed to be of comparable quality. The ability of the issuers of the securities held by the Funds to meet their obligations may be affected by economic developments in a specific industry, state or region. Certain securities are backed by letters of credit from various financial institutions and financial guaranty assurance agencies. These letters of credit enhance the credit quality of the individual securities; however, if any of the financial institutions or financial guaranty assurance agencies' credit quality should deteriorate, it could cause the individual security's credit quality to change. Additionally, if any of the Funds concentrate their letters of credit in any one financial institution, the risk of credit quality deterioration increases. The Funds hold certain securities the issuer of which operates under a congressional charter. These securities (Federal Home Loan Mortgage Corporation, Federal Home Loan Bank and Federal National Mortgage Association) are neither issued nor guaranteed by the U.S. Government. If needed, access to additional funding from the U.S. Treasury (beyond the issuer's line of credit), would require congressional action. 8. Securities Lending The Funds (other than the Money Market Funds) may lend portfolio securities to brokers, dealers and other financial organizations that meet capital and other credit requirements or other criteria established by the Trust's Board. These loans may not exceed either (i) 50% of the sum of the market value of all securities of the Fund and the market value of the loan collateral or (ii) 33.33% of the total market value of all securities of the Fund. No Fund will lend portfolio securities to its investment adviser or its affiliates unless it has applied for and received specific authority to do so from the Securities and Exchange Commission. Loans of portfolio 238 NOTES TO FINANCIAL STATEMENTS (continued) STI CLASSIC FUNDS March 31, 2006 securities will be fully collateralized by cash, letters of credit or U.S. government securities. The value of the collateral is at least 102% of the market value of the securities loaned, and is maintained in an amount equal to at least 100% thereafter. However, due to market fluctuations during the day, the value of securities loaned on a particular day may, during the course of the day, exceed the value of collateral. On each business day, the amount of collateral is adjusted based on the prior day's market fluctuations and the current day's lending activity. Income from lending activity is determined by the amount of interest earned on collateral, less any amounts payable to the borrowers of the securities and the lending agent. Lending securities involves certain risks, including the risk that the Fund may be delayed or prevented from recovering the collateral if the borrower fails to return the securities. A fee will be obtained from the borrower if letters of credit or U.S. government securities are used as collateral. Cash collateral received in connection with securities lending is invested in the CSFB Enhanced Liquidity Portfolio (the "Portfolio"). This investment may consist of money market mutual funds registered under the Investment Company Act of 1940 and money market instruments including commercial paper, repurchase agreements, U.S. Treasury Bills and U.S. Agency Obligations. At March 31, 2006, the Portfolio was invested in certificates of deposit, repurchase agreements, asset backed securities and corporate bonds (with interest rates ranging from 4.58% to 5.09% and maturity dates ranging from 04/03/06 to 04/17/17). The Funds paid fees security lending fees during the year ended March 31, 2006, which have been netted against the Securities Lending Income on the Statements of Operations. These fees are presented below (in thousands):
Fees($) ------- High Income Fund............................................ 13 Investment Grade Bond Fund.................................. 235 Limited-Term Federal Mortgage Securities Fund............... 6 Seix High Yield Fund........................................ 82 Short-Term Bond Fund........................................ 31 Strategic Income Fund....................................... 132 U.S. Government Securities Fund............................. 91 U.S. Government Securities Ultra-Short Bond Fund............ -- Ultra-Short Bond Fund....................................... 2
- --------------- Amounts designated as "--" round to less than $1,000. 9. Other Federal Tax Information (Unaudited) For corporate shareholders, no portion of the total ordinary income distributions paid by the Funds during the year ended March 31, 2006 qualified for the corporate dividends received deduction. Therefore, none of the Funds paid qualified dividend income for the year ended March 31, 2006. 10. Subsequent Event On May 8, 2006, the Seix Floating Rate High Income Fund began offering A Shares. 239 REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM To the Board of Trustees and Shareholders of STI Classic Funds: In our opinion, the accompanying statements of assets and liabilities, including the schedules of portfolio investments, and the related statements of operations and of changes in net assets and the financial highlights present fairly, in all material respects, the financial position of Core Bond Fund (formerly "Classic Institutional Core Bond Fund"), Florida Tax-Exempt Bond Fund, Georgia Tax-Exempt Bond Fund, High Income Fund, High Quality Bond Fund (formerly "Classic Institutional High Quality Bond Fund"), Intermediate Bond Fund (formerly "Classic Institutional Intermediate Bond Fund"), Investment Grade Bond Fund, Investment Grade Tax-Exempt Bond Fund, Limited Duration Fund (formerly "Classic Institutional Limited Duration Fund"), Limited-Term Federal Mortgage Securities Fund, Maryland Municipal Bond Fund, North Carolina Tax-Exempt Bond Fund, Seix Floating Rate High Income Fund, Seix High Yield Fund (formerly "Seix Institutional High Yield Fund"), Short-Term Bond Fund, Short-Term U.S. Treasury Securities Fund, Strategic Income Fund, Total Return Bond Fund (formerly "Classic Institutional Total Return Bond Fund"), U.S. Government Securities Fund, U.S. Government Securities Ultra-Short Bond Fund (formerly "Classic Institutional U.S. Government Securities Super Short Income Plus Fund"), Ultra-Short Bond Fund (formerly "Classic Institutional Super Short Income Plus Fund"), Virginia Intermediate Municipal Bond Fund, Virginia Municipal Bond Fund, Prime Quality Money Market Fund, Tax-Exempt Money Market Fund, U.S. Government Securities Money Market Fund, U.S. Treasury Money Market Fund, and Virginia Tax-Free Money Market Fund (twenty-eight of the fifty-three funds constituting STI Classic Funds, hereafter referred to as the "Funds") at March 31, 2006, the results of each of their operations, the changes in each of their net assets and the financial highlights for each of the periods indicated, except as discussed below where funds were audited by other independent accountants, in conformity with accounting principles generally accepted in the United States of America. These financial statements and financial highlights (hereafter referred to as "financial statements") are the responsibility of the Funds' management; our responsibility is to express an opinion on these financial statements based on our audits. We conducted our audits of these financial statements in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting principles used and significant estimates made by management, and evaluating the overall financial statement presentation. We believe that our audits, which included confirmation of securities at March 31, 2006 by correspondence with the custodians and brokers, provide a reasonable basis for our opinion. The statement of changes in net assets and the financial highlights for the period ended May 31, 2004 of the North Carolina Tax-Exempt Bond Fund were audited by other independent accountants whose report dated July 19, 2004 expressed an unqualified opinion on those financial statements. The financial highlights for each of the three years (or periods) ended October 31, 2003 of the Core Bond Fund, Intermediate Bond Fund, Limited Duration Fund and Seix High Yield Fund were audited by other independent accountants whose report dated December 19, 2003 expressed an unqualified opinion on those financial statements. The financial highlights for the year ended May 31, 2001 for all other funds were audited by other independent accountants who have ceased operations. Those independent accountants expressed an unqualified opinion on those financial statements in their report dated July 18, 2001. As discussed in Note 1, U.S. Government Securities Ultra-Short Bond Fund and Ultra-Short Bond Fund have restated their previously issued March 31, 2005 financial statements for the periods ended March 31, 2005, May 31, 2004, May 31, 2003 and May 31, 2002. PricewaterhouseCoopers LLP Philadelphia, Pennsylvania May 25, 2006 240 TRUSTEES AND OFFICERS OF THE STI CLASSIC FUNDS (UNAUDITED) Information pertaining to the trustees and officers of the Trust is set forth below. Trustees who are not deemed to be "interested persons" of the Trust as defined in the 1940 Act are referred to as "Independent Trustees." Trustees who are deemed to be "interested persons" of the Trust are referred to as "Interested Trustees." Messrs. Courts and Ridley are trustees who may be deemed to be "interested persons" of the Trust. - --------------------------------------------------------------------------------
NUMBER OF PORTFOLIOS IN TERM OF THE STI OTHER POSITION(S) OFFICE AND PRINCIPAL FUND COMPLEX DIRECTORSHIPS NAME, ADDRESS, HELD WITH LENGTH OF OCCUPATION(S) OVERSEEN BY HELD BY DATE OF BIRTH THE GROUP TIME SERVED DURING THE PAST 5 YEARS TRUSTEE TRUSTEE - ------------------------------------------------------------------------------------------------------------------------------------ INTERESTED TRUSTEES*: Richard W. Courts, II Trustee Indefinite; Chairman, Atlantic Investment 60 Genuine Parts Company; 3435 Stelzer Road since November Company Piedmont Medical Center; Columbus, OH 43219 2001 SunTrust Bank DOB 01/18/36 - ------------------------------------------------------------------------------------------------------------------------------------ Clarence H. Ridley Trustee Indefinite; Chairman, Haverty Furniture 60 Crawford & Co. 3435 Stelzer Road since November Companies; Partner, King and Columbus, OH 43219 2001 Spaulding LLP (law firm) (1977 DOB 06/03/42 to 2000) - ------------------------------------------------------------------------------------------------------------------------------------ INDEPENDENT TRUSTEES: Thomas Gallagher Trustee Indefinite; President, CEO, Genuine Parts 60 Genuine Parts Company; 3435 Stelzer Road since May 2000 Company Oxford Industries, Inc. Columbus, OH 43219 DOB 11/25/47 - ------------------------------------------------------------------------------------------------------------------------------------ F. Wendell Gooch Trustee Indefinite; Retired 60 SEI Family of Funds 3435 Stelzer Road since May 1992 Columbus, OH 43219 DOB 12/03/32 - ------------------------------------------------------------------------------------------------------------------------------------ Sidney E. Harris Trustee Indefinite; Professor (since 2004) and Dean 60 ServiceMaster Company; Total 3435 Stelzer Road since November (1997-2004), J. Mack Robinson System Services, Inc.; Columbus, OH 43219 2004 College of Business, Georgia Transamerica Investors, Inc. DOB 07/21/49 State University. (13 Mutual Funds) - ------------------------------------------------------------------------------------------------------------------------------------ Warren Y. Jobe Trustee Indefinite; Retired. EVP, Georgia Power 60 WellPoint, Inc.; UniSource 3435 Stelzer Road since November Company and SVP, Southern Energy Corp.; HomeBanc Corp. Columbus, OH 43219 2004 Company (1998-2001) DOB 11/12/40 - ------------------------------------------------------------------------------------------------------------------------------------ Connie D. McDaniel Trustee Indefinite; Vice President and Controller, 60 None 3435 Stelzer Road since May 2005 The Coca-Cola Company Columbus, OH 43219 DOB 04/10/58 - ------------------------------------------------------------------------------------------------------------------------------------ James O. Robbins Trustee Indefinite; Retired. President, CEO, Cox 60 Cox Communications; Humana, 3435 Stelzer Road since May 2000 Communications, Inc. Inc. Columbus, OH 43219 (1985-2005) DOB 07/04/42 - ------------------------------------------------------------------------------------------------------------------------------------ Charles D. Winslow Trustee Indefinite; Retired. Formerly Partner, 60 None 3435 Stelzer Road since November Accenture (consulting) Columbus, OH 43219 2004 DOB 07/13/35 - ------------------------------------------------------------------------------------------------------------------------------------
* Mr. Courts may be deemed an Interested Trustee because of his directorships with affiliates of the Investment Adviser. Mr. Ridley may be deemed an Interested Trustee because of a material business relationship with the parent of the Investment Adviser. 241 TRUSTEES AND OFFICERS OF THE STI CLASSIC FUNDS (UNAUDITED) (continued)
TERM OF POSITION(S) OFFICE AND NAME, ADDRESS, HELD WITH LENGTH OF PRINCIPAL OCCUPATION(S) DATE OF BIRTH THE GROUP TIME SERVED DURING THE PAST 5 YEARS - -------------------------------------------------------------------------------------------------------------------------------- OFFICERS: R. Jeffrey Young President One-year; since July Senior Vice President, Relationship Management, BISYS 3435 Stelzer Road 2004 Fund Services (since 2002); Vice President, Client Columbus, OH 43219 Services, BISYS Fund Services; (1997-2002) DOB 08/22/64 - -------------------------------------------------------------------------------------------------------------------------------- Deborah A. Lamb Executive Vice One-year; since Chief Compliance Officer and Managing Director, Trusco 50 Hurt Plaza President, September 2004; since Capital Management, Inc. (since 2003); President, Atlanta, GA 30303 Assistant November 2003; since Investment Industry Consultants, LLC (2000-2003) DOB 10/02/52 Secretary; Chief August 2004 Compliance Officer (respectively) - -------------------------------------------------------------------------------------------------------------------------------- Joel B. Engle Treasurer, Chief One-year; since May Director, Fund Administration, BISYS Fund Services 3435 Stelzer Road Financial Officer 2006* (since 2006); Self-employed, retail business owner Columbus, OH 43219 (2003-2006); Vice President, Financial Services, BISYS DOB 10/31/65 Fund Services (1998- 2003) - -------------------------------------------------------------------------------------------------------------------------------- Cynthia J. Surprise Secretary and One-year; since Senior Counsel, Legal Services, BISYS Fund Services 3435 Stelzer Road Chief Legal February 2005 (since 2004); Director and Counsel, Investors Bank & Columbus, OH 43219 Officer Trust Company (1999-2004) DOB 07/08/46 - -------------------------------------------------------------------------------------------------------------------------------- Alaina V. Metz Assistant One-year; since July Vice President, Blue Sky Compliance, BISYS Fund Services 3435 Stelzer Road Secretary 2004 (since 2002); Chief Administrative Officer, Blue Sky Columbus, OH 43219 Compliance, BISYS Fund Services (1995-2002) DOB 04/07/67 - -------------------------------------------------------------------------------------------------------------------------------- Jennifer English Assistant One-year; since Assistant Counsel, Legal Services, BISYS Fund Services 3435 Stelzer Road Secretary November 2005 (since 2005); Assistant Counsel, PFPC, Inc. (2002-2005); Columbus, OH 43219 Associate Legal Product Manager, Fidelity Investments DOB 03/05/72 (2001); Regulatory Specialist, Wellington Management Company, LLP (1998-2001) - --------------------------------------------------------------------------------------------------------------------------------
* Elected at the Board of Trustee meeting May 9, 2006. The Trust's Statement of Additional Information includes additional information about the Trust's trustees and officers. To request your free copy of the Statement of Additional Information, call toll free 1-888-STI-FUND. 242 ADDITIONAL INFORMATION (UNAUDITED) EXPENSE EXAMPLES As a Fund shareholder, you incur two types of costs: (1) transaction costs, including sales charges (loads) on purchases and redemption fees; and (2) ongoing costs, including management fees, 12b-1 distribution and/or service fees and other Fund expenses. These examples are intended to help you understand your ongoing costs (in dollars) of investing in a Fund and to compare these costs with the ongoing costs of investing in other mutual funds. These examples are based on an investment of $1,000 invested at the beginning of the period and held for the entire period from October 1, 2005 through March 31, 2006. Actual Expenses The table below provides information about actual account values and actual expenses. You may use the information below, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number in the table under the heading entitled "Expenses Paid During Period" to estimate the expenses you paid on your account during this period.
Beginning Ending Expense Paid Expense Ratio Account Value Account Value During Period* During Period** 10/01/05 03/31/06 10/01/05-03/31/06 10/01/05-03/31/06 ------------- ------------- ----------------- ----------------- Core Bond Fund.................... I Shares $1,000.00 $ 999.00 $1.40 0.28% A Shares 1,000.00 996.80 2.64 0.53 C Shares 1,000.00 993.00 6.36 1.28 Florida Tax-Exempt Bond Fund...... I Shares 1,000.00 1,004.30 3.05 0.61 A Shares 1,000.00 1,003.50 3.80 0.76 C Shares 1,000.00 999.30 8.03 1.61 Georgia Tax-Exempt Bond Fund...... I Shares 1,000.00 1,006.70 3.10 0.62 A Shares 1,000.00 1,007.00 3.85 0.77 C Shares 1,000.00 1,002.70 8.09 1.62 High Income Fund.................. I Shares 1,000.00 1,031.80 3.60 0.71 A Shares 1,000.00 1,030.20 5.11 1.01 C Shares 1,000.00 1,025.30 8.68 1.72 High Quality Bond Fund............ I Shares 1,000.00 999.40 1.64 0.33 Intermediate Bond Fund............ I Shares 1,000.00 1,001.30 1.45 0.29 A Shares 1,000.00 1,000.10 2.74 0.55 C Shares 1,000.00 996.20 6.37 1.28 Investment Grade Bond Fund........ I Shares 1,000.00 1,010.00 2.81 0.56 A Shares 1,000.00 1,009.50 4.31 0.86 C Shares 1,000.00 1,005.00 7.80 1.56 Investment Grade Tax-Exempt Bond Fund............................ I Shares 1,000.00 1,006.90 2.80 0.56 A Shares 1,000.00 1,004.60 4.30 0.86 C Shares 1,000.00 1,001.10 7.83 1.57 Limited Duration Fund............. I Shares 1,000.00 1,020.30 0.20 0.04 Limited-Term Federal Mortgage Securities Fund................. I Shares 1,000.00 1,006.40 2.90 0.58 A Shares 1,000.00 1,005.40 3.90 0.78 C Shares 1,000.00 1,001.40 7.88 1.58 Maryland Municipal Bond Fund...... I Shares 1,000.00 1,008.90 3.21 0.64 A Shares 1,000.00 1,008.10 3.96 0.79 C Shares 1,000.00 1,003.80 8.19 1.64 North Carolina Tax-Exempt Bond Fund............................ I Shares 1,000.00 1,007.40 3.35 0.67 A Shares 1,000.00 1,009.10 4.26 0.85 C Shares 1,000.00 1,002.80 8.54 1.71 Seix Floating Rate High Income Fund............................ I Shares(a) 1,000.00 1,000.20 0.45 0.09
243 ADDITIONAL INFORMATION (UNAUDITED) (continued)
Beginning Ending Expense Paid Expense Ratio Account Value Account Value During Period* During Period** 10/01/05 03/31/06 10/01/05-03/31/06 10/01/05-03/31/06 ------------- ------------- ----------------- ----------------- Seix High Yield Fund.............. I Shares $1,000.00 $1,019.40 $2.42 0.48% A Shares 1,000.00 1,017.60 3.67 0.73 C Shares 1,000.00 1,013.50 7.43 1.48 Short-Term Bond Fund.............. I Shares 1,000.00 1,020.80 2.42 0.48 A Shares 1,000.00 1,018.70 3.42 0.68 C Shares 1,000.00 1,015.70 7.44 1.48 Short-Term U.S. Treasury Securities Fund................. I Shares 1,000.00 1,008.40 2.55 0.51 A Shares 1,000.00 1,007.50 3.50 0.70 C Shares 1,000.00 1,002.40 7.59 1.52 Strategic Income Fund............. I Shares 1,000.00 999.10 3.59 0.72 A Shares 1,000.00 996.60 5.08 1.02 C Shares 1,000.00 994.20 8.55 1.72 Total Return Bond Fund............ I Shares 1,000.00 996.60 2.19 0.44 U.S. Government Securities Fund... I Shares 1,000.00 998.90 2.84 0.57 A Shares 1,000.00 998.40 4.33 0.87 C Shares 1,000.00 994.00 7.81 1.57 U.S. Government Securities Ultra-Short Bond................ I Shares 1,000.00 1,015.70 1.56 0.31 Ultra-Short Bond Fund............. I Shares 1,000.00 1,017.20 1.46 0.29 Virginia Intermediate Municipal Bond Fund....................... I Shares 1,000.00 1,006.70 3.10 0.62 A Shares 1,000.00 1,006.00 3.85 0.77 C Shares 1,000.00 1,001.70 8.08 1.62 Virginia Municipal Bond Fund...... I Shares 1,000.00 1,006.80 3.25 0.65 A Shares 1,000.00 1,005.10 4.15 0.83 C Shares 1,000.00 1,000.80 8.23 1.65 Prime Quality Money Market Fund... I Shares 1,000.00 1,018.80 2.77 0.55 A Shares 1,000.00 1,018.00 3.52 0.70 C Shares 1,000.00 1,017.50 4.02 0.80 Tax-Exempt Money Market Fund...... I Shares 1,000.00 1,012.60 2.46 0.49 A Shares 1,000.00 1,011.90 3.21 0.64 U.S. Government Securities Money Market Fund..................... I Shares 1,000.00 1,017.80 3.07 0.61 A Shares 1,000.00 1,017.10 3.82 0.76 U.S. Treasury Money Market Fund... I Shares 1,000.00 1,017.50 2.97 0.59 A Shares 1,000.00 1,016.70 3.72 0.74 Virginia Tax-Free Money Market Fund............................ I Shares 1,000.00 1,012.90 2.26 0.45 A Shares 1,000.00 1,012.10 3.01 0.60
- --------------- * Expenses are equal to the average account value times the Fund's annualized expense ratio multiplied by the number of days in the most recent fiscal half-year divided by the number of days in the fiscal year. ** Annualized. (a) Information shown reflects values for the period from March 2, 2006 (commencement of operations to March 31, 2006) and has been calculated using expense ratios and rates of return for the same period. Hypothetical Example The table below provides information about hypothetical account values and hypothetical expenses based on a Fund's actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Fund's actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of other funds. 244 ADDITIONAL INFORMATION (UNAUDITED) (continued) Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transactional costs. Therefore, the table is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these transactional costs were included, your costs would have been higher.
Beginning Ending Expense Paid Expense Ratio Account Value Account Value During Period* During Period** 10/01/05 03/31/06 10/01/05-03/31/06 10/01/05-03/31/06 ------------- ------------- ----------------- ----------------- Core Bond Fund.................... I Shares $1,000.00 $1,023.54 $1.41 0.28% A Shares 1,000.00 1,022.29 2.67 0.53 C Shares 1,000.00 1,018.55 6.44 1.28 Florida Tax-Exempt Bond Fund...... I Shares 1,000.00 1,021.89 3.07 0.61 A Shares 1,000.00 1,021.14 3.83 0.76 C Shares 1,000.00 1,016.90 8.10 1.61 Georgia Tax-Exempt Bond Fund...... I Shares 1,000.00 1,021.84 3.13 0.62 A Shares 1,000.00 1,021.09 3.88 0.77 C Shares 1,000.00 1,016.85 8.15 1.62 High Income Fund.................. I Shares 1,000.00 1,021.39 3.58 0.71 A Shares 1,000.00 1,019.90 5.09 1.01 C Shares 1,000.00 1,016.36 8.65 1.72 High Quality Bond Fund............ I Shares 1,000.00 1,022.19 2.77 0.33 Intermediate Bond Fund............ I Shares 1,000.00 1,023.49 1.46 0.29 A Shares 1,000.00 1,022.19 2.77 0.55 C Shares 1,000.00 1,018.55 6.44 1.28 Investment Grade Bond Fund........ I Shares 1,000.00 1,022.14 2.82 0.56 A Shares 1,000.00 1,020.64 4.33 0.86 C Shares 1,000.00 1,017.15 7.85 1.56 Investment Grade Tax-Exempt Bond Fund............................ I Shares 1,000.00 1,022.14 2.82 0.56 A Shares 1,000.00 1,020.64 4.33 0.86 C Shares 1,000.00 1,017.10 7.90 1.57 Limited Duration Fund............. I Shares 1,000.00 1,024.73 0.20 0.04 Limited-Term Federal Mortgage Securities Fund................. I Shares 1,000.00 1,022.04 2.92 0.58 A Shares 1,000.00 1,021.04 3.93 0.78 C Shares 1,000.00 1,017.05 7.95 1.58 Maryland Municipal Bond Fund...... I Shares 1,000.00 1,021.74 3.23 0.64 A Shares 1,000.00 1,020.99 3.98 0.79 C Shares 1,000.00 1,016.75 8.25 1.64 North Carolina Tax-Exempt Bond Fund............................ I Shares 1,000.00 1,021.59 3.38 0.67 A Shares 1,000.00 1,020.69 4.28 0.85 C Shares 1,000.00 1,016.40 8.60 1.71 Seix Floating Rate High Income Fund............................ I Shares(a) 1,000.00 1,024.48 0.45 0.09 Seix High Yield Fund.............. I Shares 1,000.00 1,022.54 2.42 0.48 A Shares 1,000.00 1,021.29 3.68 0.73 C Shares 1,000.00 1,017.55 7.44 1.48 Short-Term Bond Fund.............. I Shares 1,000.00 1,022.54 2.42 0.48 A Shares 1,000.00 1,021.54 3.43 0.68 C Shares 1,000.00 1,017.55 7.44 1.48 Short-Term U.S. Treasury Securities Fund................. I Shares 1,000.00 1,022.39 2.57 0.51 A Shares 1,000.00 1,021.44 3.53 0.70 C Shares 1,000.00 1,017.35 7.64 1.52 Strategic Income Fund............. I Shares 1,000.00 1,021.34 3.63 0.72 A Shares 1,000.00 1,019.85 5.14 1.02 C Shares 1,000.00 1,016.36 8.65 1.72 Total Return Bond Fund............ I Shares 1,000.00 1,022.74 2.22 0.44 U.S. Government Securities Fund... I Shares 1,000.00 1,022.09 2.87 0.57 A Shares 1,000.00 1,020.59 4.38 0.87 C Shares 1,000.00 1,017.10 7.90 1.57 U.S. Government Securities Ultra-Short Bond................ I Shares 1,000.00 1,023.39 1.56 0.31
245 ADDITIONAL INFORMATION (UNAUDITED) (continued)
Beginning Ending Expense Paid Expense Ratio Account Value Account Value During Period* During Period** 10/01/05 03/31/06 10/01/05-03/31/06 10/01/05-03/31/06 ------------- ------------- ----------------- ----------------- Ultra-Short Bond Fund............. I Shares $1,000.00 $1,023.49 $1.46 0.29% Virginia Intermediate Municipal Bond Fund....................... I Shares 1,000.00 1,021.84 3.13 0.62 A Shares 1,000.00 1,021.09 3.88 0.77 C Shares 1,000.00 1,016.85 8.15 1.62 Virginia Municipal Bond Fund...... I Shares 1,000.00 1,021.69 3.28 0.65 A Shares 1,000.00 1,020.79 4.18 0.83 C Shares 1,000.00 1,016.70 8.30 1.65 Prime Quality Money Market Fund... I Shares 1,000.00 1,022.19 2.77 0.55 A Shares 1,000.00 1,021.44 3.53 0.70 C Shares 1,000.00 1,020.94 4.03 0.80 Tax-Exempt Money Market Fund...... I Shares 1,000.00 1,022.49 2.47 0.49 A Shares 1,000.00 1,021.74 3.23 0.64 U.S. Government Securities Money Market Fund..................... I Shares 1,000.00 1,021.89 3.07 0.61 A Shares 1,000.00 1,021.14 3.83 0.76 U.S. Treasury Money Market Fund... I Shares 1,000.00 1,021.99 2.97 0.59 A Shares 1,000.00 1,021.24 3.73 0.74 Virginia Tax-Free Money Market Fund............................ I Shares 1,000.00 1,022.69 2.27 0.45 A Shares 1,000.00 1,021.94 3.02 0.60
- --------------- * Expenses are equal to the average account value times the Fund's annualized expense ratio multiplied by the number of days in the most recent fiscal half-year divided by the number of days in the fiscal year. ** Annualized. (a) Information shown reflects values for the period from March 2, 2006 (commencement of operations to March 31, 2006) and has been calculated using expense ratios and rates of return for the same period. PROXY VOTING Information regarding the policies and procedures that the Funds use to determine how to vote proxies relating to portfolio securities is available without charge, upon request, by calling 1-888-STI-FUND. The information also is included in the Funds' Statement of Additional Information, which is available on the Funds' website at www.sticlassicfunds.com and on the Securities and Exchange Commission's website at www.sec.gov. Information relating to how each Fund voted proxies relating to portfolio securities held during the most recent twelve months ended June 30 is available on the Funds' website at www.sticlassicfunds.com and on the Securities and Exchange Commission's website at www.sec.gov. PORTFOLIO HOLDINGS INFORMATION The Funds file a complete list of their portfolio holdings with the Securities and Exchange Commission for the first and third quarters of each fiscal year on Form N-Q. Forms N-Q are available free of charge on the Securities and Exchange Commission's website at www.sec.gov. You may also review or, for a fee, copy those documents by visiting the Securities and Exchange Commission's Public Reference Room in Washington, D.C. Information on the operation of the Public Reference Room may be obtained by calling the Securities and Exchange Commission at 1-800-SEC-0330. 246 (This page intentionally left blank) (This page intentionally left blank) INVESTMENT ADVISER: Trusco Capital Management, Inc. This information must be preceded or accompanied by a current prospectus for each Fund described. An investor should consider the Fund's investment objectives, risks, charges and expenses carefully before investing or sending money. This and other important information about STI Classic Funds can be found in the Fund's prospectus. For additional information, please call 1-888-STI-FUND, or visit www.sticlassicfunds.com. Please read the prospectus carefully before investing. DISTRIBUTOR: BISYS Fund Services Limited Partnership NOT FDIC INSURED - NO BANK GUARANTEE - MAY LOSE VALUE STI CLASSIC FUNDS STI-ABMM-0306 5/06 2006 ANNUAL REPORT INSTITUTIONAL MONEY MARKET FUNDS MARCH 31, 2006 STI CLASSIC FUNDS TABLE OF CONTENTS STI CLASSIC FUNDS March 31, 2006 Letter to Shareholders..................................................... 1 MANAGEMENT DISCUSSION AND ANALYSIS Classic Institutional Cash Management Money Market Fund.................... 3 Classic Institutional Municipal Cash Reserve Money Market Fund............. 4 Classic Institutional U.S. Government Securities Money Market Fund......... 5 Classic Institutional U.S. Treasury Securities Money Market Fund........... 6 Schedules of Portfolio Investments......................................... 8 Statements of Assets and Liabilities....................................... 22 Statements of Operations................................................... 23 Statements of Changes in Net Assets........................................ 24 Financial Highlights....................................................... 26 Notes to Financial Statements.............................................. 28 Report of Independent Registered Public Accounting Firm.................... 34 Trustees and Officers of the STI Classic Funds............................. 35 Additional Information..................................................... 37
LETTER TO SHAREHOLDERS March 31, 2006 Dear Valued STI Classic Funds Shareholder, Another fiscal year has come to a successful close. The environment was challenging, and the path over the past twelve months was uneven, but both the economy and financial markets navigated the setbacks and emerged with positive results. The STI Classic Funds performed very well during these often trying times, with peer group outperformance by 27 stock and bond funds across a number of diverse styles and asset classes. This outperformance helped achieve competitive returns with well-diversified portfolios. We will highlight some key developments in the economy and financial markets, but would first like to thank you for your confidence and support in choosing the STI Classic Funds to help grow your investments. We greatly value the opportunity to serve you and continue to strive to meet your expectations every day. The overall economic backdrop for the markets was positive despite natural, economic, and financial "headwinds." Real Gross Domestic Product(1) (GDP) grew 3.5% for the year ended March 2006, paced by strong double-digit gains in business capital spending. "Headline" inflation, as measured by the Consumer Price Index, increased 3.4% during the same period, which was 1% higher than in the previous fiscal year. Energy prices, as everyone is painfully aware, were largely responsible for the acceleration. However, if energy and food are taken out of the measure, as the Federal Reserve ("the Fed") prefers to do in setting monetary policy, the resulting core inflation rate was just 2.1%. Unfortunately, the economy did not grow at an "average" pace for the entire year. The tragedies of hurricanes Katrina and Rita were a terrible blow in both sociological and economic terms. Though the storms occurred in the third quarter of 2005, the statistical impact of the devastation was concentrated in the fourth quarter, when growth slowed to an anemic 1.7%. The damage to the energy infrastructure from the storm helped drive prices sharply higher, draining discretionary dollars from consumer wallets and business bottom lines. Energy prices retreated somewhat during the fourth quarter, but then moved higher in the first quarter. Fed policy was another headwind for the economy. The central bank raised short-term interest rates fifteen consecutive times since June 2004, culminating in the 4.75% fed funds rate on March 31, 2006. During most of this time, the impact of the tightening was limited to short-term rates, but after the yield curve flattened at the end of 2005 (short and long rate roughly equal), long-term rates, such as home mortgage rates, also moved higher, making borrowing more expensive. The continued growth in the economy, combined with reasonable valuations, helped equities move broadly higher during the fiscal year. The S&P 500 Index returned 11.72%, including dividends, during the twelve months ended March 31, 2006, compared with 6.69% in the previous year. Energy stocks, boosted by the increase in oil prices, out performed other major sectors in the index for the year. In addition, above average gains were posted in the financial, telecom, and technology sectors. Consumer stocks underperformed, reflecting the pressure on consumers as discussed earlier. The mix of sector performance did not overly benefit either the value or growth style for the year, except in small-caps, where growth outperformed value by four percentage points. Small-cap and mid-cap stocks performed very well over the past year, with a 25.85% gain in the Russell 2000(R) Index and a 21.54% rise in the Russell Midcap(R) Index. International stocks also performed very well, as evidenced by the 24.41% gain in the MSCI EAFE Index. In the fixed-income markets, the yield on the 10-year Treasury note was relatively "range-bound" for much of the year, but continued pressure from short-term rate increases and higher energy prices, among other factors pushed the yield to 4.85% by March. As a result, bond returns, as measured by the Lehman Brothers Aggregate Bond Index, returned a positive, but below average, 2.26% for the year ended March 31. Higher quality bonds, such as Treasuries, tended to lag the overall investment-grade index. The standout performer in the fixed-income market was the High Yield sector, which returned 7.43% during the year. The STI Classic Funds performed very well during this period, as 27 funds across a wide spectrum of investment styles, generated above-average returns. These included large-cap growth and value, mid-cap, small-cap growth and value, short-and intermediate-term bonds, high yield, and municipal bonds. Many of these funds were highlighted for their strong performance in publications such as the Wall Street Journal, Investor's Business Daily, and Kiplinger's Personal Finance. In addition to strong performance, we reduced the internal expense ratios on many of the funds to expressly benefit you, our valued shareholder. 1 LETTER TO SHAREHOLDERS Looking ahead, we expect continued economic growth, though the pace over the next year will likely be below that of the past year. This may allow the Fed to keep short-term rates steady for awhile as long as inflation remains contained. It promises to be quite a balancing act for new Fed Chairman Ben Bernanke! With growth likely to slow, interest rates relatively high as compared to the last few years, and elevated energy prices still a threat, our strategy is to emphasize quality company holdings that we believe are best able to weather a more challenging environment. We close this letter with a special thanks to you, and also to Douglas Phillips, CFA, the founding president of Trusco Capital Management, who retired on December 31, 2005. Under Doug's outstanding leadership, the STI Classic Funds thrived even in the most challenging markets, to become one of the nation's leading mutual fund families. Of particular importance, we are most grateful to Doug Phillips for his strong sense of discipline, integrity, and commitment to the highest levels of client service. He will be missed, but his legacy will endure. Sincerely, /s/ David H. Edison - ------------------------------------- David H. Eidson Chairman and CEO /s/ Robert J. Rhodes - ------------------------------------- Robert J. Rhodes, CFA Executive Vice President (1) The Gross Domestic Product ("GDP") is the monetary value of all the finished goods and services produced within a country's borders in a specific time period, though GDP is usually calculated on an annual basis. It includes all of private and public consumption, government outlays, investments and exports less imports that occur within a defined territory. 2 CLASSIC INSTITUTIONAL CASH MANAGEMENT MONEY MARKET FUND PORTFOLIO MANAGER - - Robert S. Bowman, CFA INVESTMENT CONCERNS AN INVESTMENT IN THE FUND IS NOT INSURED OR GUARANTEED BY THE FDIC OR ANY OTHER GOVERNMENT AGENCY. ALTHOUGH THE FUND SEEKS TO PRESERVE THE VALUE OF YOUR INVESTMENT AT $1.00 PER SHARE, IT IS POSSIBLE TO LOSE MONEY BY INVESTING IN THE FUND. MANAGEMENT DISCUSSION & ANALYSIS WHAT FACTORS INFLUENCED THE FUND'S PERFORMANCE FOR THE PERIOD ENDED MARCH 31, 2006? The Fund was positioned for a rising rate environment by overweighting floating rate assets and maintaining shorter fixed maturities. During the period the Federal Reserve has increased interest rates at each Federal Open Market Committee ("FOMC") meeting benefiting the performance of the Fund. HOW DO YOU PLAN TO POSITION THE FUND, BASED ON MARKET CONDITIONS? Our outlook is that the Federal Reserve could raise interest rates at the next FOMC meeting to guard against a further rise in inflation. We expect a slowing in economic growth led by housing for the second half of this year. This slowing in economic activity could alleviate inflation concerns and allow the Federal Reserve to finish raising rates. We believe the portfolio has been structured to potentially benefit from a near term rise in rates and then a flattening of the LIBOR(1) curve later in the year. (1) LIBOR is an interest rate at which banks can borrow funds, in marketable size, from other banks in the London interbank market. The LIBOR is fixed on a daily basis by the British Bankers' Association. The LIBOR is derived from a filtered average of the world's most creditworthy banks' interbank deposit rates for larger loans with maturities between overnight and one full year. YIELDS AND MATURITY DISTRIBUTION INSTITUTIONAL YIELDS (as of March 31, 2006) SHARES - ----------------------------- ------------- 7 Day Average Yield 4.50% 7 Day Effective Yield 4.60% 30 Day Yield 4.41%
PAST PERFORMANCE DOES NOT GUARANTEE FUTURE RESULTS. THE PERFORMANCE DATA QUOTED REPRESENTS PAST PERFORMANCE AND CURRENT RETURNS MAY BE LOWER OR HIGHER. TOTAL RETURN FIGURES INCLUDE CHANGE IN SHARE PRICE, REINVESTMENT OF DIVIDENDS AND CAPITAL GAINS AND DO NOT REFLECT TAXES THAT A SHAREHOLDER WOULD PAY ON FUND DISTRIBUTIONS OR ON THE REDEMPTION OF FUND SHARES. THE INVESTMENT RETURN AND PRINCIPAL VALUE WILL FLUCTUATE SO THAT AN INVESTOR'S SHARES, WHEN REDEEMED MAY BE WORTH MORE OR LESS THAN THE ORIGINAL COST. FOR PERFORMANCE DATA CURRENT TO THE MOST RECENT MONTH END, VISIT OUR WEBSITE AT WWW.STICLASSICFUNDS.COM. The yield quotation more closely reflects the current earnings of the Fund than the total return. MATURITY DISTRIBUTION (as of March 31, 2006)(2) as a percentage of total investments (PIE CHART) 1-2 Days 23.4% 3-14 Days 44.6% 15-29 Days 2.2% 30-89 Days 10.0% 90-365 Days 19.8%
(2) PORTFOLIO COMPOSITION IS SUBJECT TO CHANGE 3 CLASSIC INSTITUTIONAL MUNICIPAL CASH RESERVE MONEY MARKET FUND PORTFOLIO MANAGER - - Robert S. Bowman, CFA INVESTMENT CONCERNS AN INVESTMENT IN THE FUND IS NOT INSURED OR GUARANTEED BY THE FDIC OR ANY OTHER GOVERNMENT AGENCY. ALTHOUGH THE FUND seeks TO preserve THE VALUE OF YOUR INVESTMENT AT $1.00 PER SHARE, IT IS POSSIBLE TO LOSE MONEY BY INVESTING IN THE FUND. MANAGEMENT DISCUSSION & ANALYSIS WHAT FACTORS INFLUENCED THE FUND'S PERFORMANCE FOR THE PERIOD ENDED MARCH 31, 2006? The Fund was positioned for a rising rate environment by overweighting floating rate assets and maintaining shorter fixed maturities. During the period the Federal Reserve has increased interest rates at each Federal Open Market Committee ("FOMC") meeting benefiting the performance of the Fund. HOW DO YOU PLAN TO POSITION THE FUND, BASED ON MARKET CONDITIONS? Our outlook is that the Federal Reserve could raise interest rates at the next FOMC meeting to guard against a further rise in inflation. We expect a slowing in economic growth led by housing for the second half of this year. This slowing in economic activity could alleviate inflation concerns and allow the Federal Reserve to finish raising rates. We believe the portfolio has been structured to potentially benefit from a near term rise in rates and then a flattening of the LIBOR(1) curve later in the year. (1) LIBOR is an interest rate at which banks can borrow funds, in marketable size, from other banks in the London interbank market. The LIBOR is fixed on a daily basis by the British Bankers' Association. The LIBOR is derived from a filtered average of the world's most creditworthy banks' interbank deposit rates for larger loans with maturities between overnight and one full year. YIELDS AND MATURITY DISTRIBUTION
INSTITUTIONAL YIELDS (as of March 31, 2006) SHARES - ----------------------------- ------------- 7 Day Average Yield 2.89% 7 Day Effective Yield 2.93% 30 Day Yield 2.86%
PAST PERFORMANCE DOES NOT GUARANTEE FUTURE RESULTS. THE PERFORMANCE DATA QUOTED REPRESENTS PAST PERFORMANCE AND CURRENT RETURNS MAY BE LOWER OR HIGHER. TOTAL RETURN FIGURES INCLUDE CHANGE IN SHARE PRICE, REINVESTMENT OF DIVIDENDS AND CAPITAL GAINS AND DO NOT REFLECT TAXES THAT A SHAREHOLDER WOULD PAY ON FUND DISTRIBUTIONS OR ON THE REDEMPTION OF FUND SHARES. THE INVESTMENT RETURN AND PRINCIPAL VALUE WILL FLUCTUATE SO THAT AN INVESTOR'S SHARES, WHEN REDEEMED MAY BE WORTH MORE OR LESS THAN THE ORIGINAL COST. FOR PERFORMANCE DATA CURRENT TO THE MOST RECENT MONTH END, VISIT OUR WEBSITE AT WWW.STICLASSICFUNDS.COM. The yield quotation more closely reflects the current earnings of the Fund than the total return. MATURITY DISTRIBUTION (as of March 31, 2006)(2) as a percentage of total investments (PIE CHART) 1-2 Days 15.8% 3-14 Days 80.2% 180-365 Days 4.0%
(2) PORTFOLIO COMPOSITION IS SUBJECT TO CHANGE 4 CLASSIC INSTITUTIONAL U.S. GOVERNMENT SECURITIES MONEY MARKET FUND PORTFOLIO MANAGER - - Robert S. Bowman, CFA INVESTMENT CONCERNS AN INVESTMENT IN THE FUND IS NOT INSURED OR GUARANTEED BY THE FDIC OR ANY OTHER GOVERNMENT AGENCY. ALTHOUGH THE FUND SEEKS TO PRESERVE THE VALUE OF YOUR INVESTMENT AT $1.00 PER SHARE, IT IS POSSIBLE TO LOSE MONEY BY INVESTING IN THE FUND. U.S. GOVERNMENT GUARANTEES APPLY ONLY TO THE UNDERLYING SECURITIES OF THE FUND'S PORTFOLIO AND NOT THE FUND'S SHARES. MANAGEMENT DISCUSSION & ANALYSIS WHAT FACTORS INFLUENCED THE FUND'S PERFORMANCE FOR THE PERIOD ENDED MARCH 31, 2006? The Fund was positioned for a rising rate environment by overweighting floating rate assets and maintaining shorter fixed maturities. During the period the Federal Reserve has increased interest rates at each Federal Open Market Committee ("FOMC") meeting benefiting the performance of the Fund. HOW DO YOU PLAN TO POSITION THE FUND, BASED ON MARKET CONDITIONS? Our outlook is that the Federal Reserve could raise interest rates at the next FOMC meeting to guard against a further rise in inflation. We expect a slowing in economic growth led by housing for the second half of this year. This slowing in economic activity could alleviate inflation concerns and allow the Federal Reserve to finish raising rates. We believe the portfolio has been structured to potentially benefit from a near term rise in rates and then a flattening of the LIBOR(1) curve later in the year. (1) LIBOR is an interest rate at which banks can borrow funds, in marketable size, from other banks in the London interbank market. The LIBOR is fixed on a daily basis by the British Bankers' Association. The LIBOR is derived from a filtered average of the world's most creditworthy banks' interbank deposit rates for larger loans with maturities between overnight and one full year. YIELDS AND MATURITY DISTRIBUTION
INSTITUTIONAL YIELDS (as of March 31, 2006) SHARES - ----------------------------- ------------- 7 Day Average Yield 4.37% 7 Day Effective Yield 4.46% 30 Day Yield 4.29%
PAST PERFORMANCE DOES NOT GUARANTEE FUTURE RESULTS. THE PERFORMANCE DATA QUOTED REPRESENTS PAST PERFORMANCE AND CURRENT RETURNS MAY BE LOWER OR HIGHER. TOTAL RETURN FIGURES INCLUDE CHANGE IN SHARE PRICE, REINVESTMENT OF DIVIDENDS AND CAPITAL GAINS AND DO NOT REFLECT TAXES THAT A SHAREHOLDER WOULD PAY ON FUND DISTRIBUTIONS OR ON THE REDEMPTION OF FUND SHARES. THE INVESTMENT RETURN AND PRINCIPAL VALUE WILL FLUCTUATE SO THAT AN INVESTOR'S SHARES, WHEN REDEEMED MAY BE WORTH MORE OR LESS THAN THE ORIGINAL COST. FOR PERFORMANCE DATA CURRENT TO THE MOST RECENT MONTH END, VISIT OUR WEBSITE AT WWW.STICLASSICFUNDS.COM. The yield quotation more closely reflects the current earnings of the Fund than the total return. MATURITY DISTRIBUTION (as of March 31, 2006)(2) as a percentage of total investments (PIE CHART) 1-2 Days 57.1% 3-14 Days 13.1% 15-29 Days 3.1% 30-59 Days 6.3% 60-89 Days 2.1% 90-179 Days 5.2% 180-365 Days 13.1%
(2) PORTFOLIO COMPOSITION IS SUBJECT TO CHANGE 5 CLASSIC INSTITUTIONAL U.S. TREASURY SECURITIES MONEY MARKET FUND PORTFOLIO MANAGER(S) - - E. Dean Speer, CPA, CFA - - Kimberly C. Maichle, CFA - - Greg Hallman INVESTMENT CONCERNS AN INVESTMENT IN THE FUND IS NOT INSURED OR GUARANTEED BY THE FDIC OR ANY OTHER GOVERNMENT AGENCY. ALTHOUGH THE FUND SEEKS TO PRESERVE THE VALUE OF YOUR INVESTMENT AT $1.00 PER SHARE, IT IS POSSIBLE TO LOSE MONEY BY INVESTING IN THE FUND. MANAGEMENT DISCUSSION & ANALYSIS WHAT FACTORS INFLUENCED THE FUND'S PERFORMANCE FOR THE PERIOD ENDED MARCH 31, 2006? The Fund was positioned for a rising rate environment by maintaining shorter fixed maturities. For the period the Federal Reserve has increased interest rates at each Federal Open Market Committee ("FOMC") meeting benefiting the performance of the Fund. HOW DO YOU PLAN TO POSITION THE FUND, BASED ON MARKET CONDITIONS? Our outlook is that the Federal Reserve could raise interest rates at the next FOMC meeting to guard against a further rise in inflation. We expect a slowing in economic growth led by housing for the second half of this year. This slowing in economic activity may alleviate inflation concerns and allow the Federal Reserve to finish raising rates. The portfolio has been structured to potentially benefit from a near term rise in rates and then a flattening of the yield curve later in the year. YIELDS AND MATURITY DISTRIBUTION
INSTITUTIONAL CORPORATE YIELDS (as of March 31, 2006) SHARES TRUST SHARES - ----------------------------- ------------- ------------ 7 Day Average Yield 4.42% 4.17% 7 Day Effective Yield 4.52% 4.26% 30 Day Yield 4.30% 4.05%
PAST PERFORMANCE DOES NOT GUARANTEE FUTURE RESULTS. THE PERFORMANCE DATA QUOTED REPRESENTS PAST PERFORMANCE AND CURRENT RETURNS MAY BE LOWER OR HIGHER. TOTAL RETURN FIGURES INCLUDE CHANGE IN SHARE PRICE, REINVESTMENT OF DIVIDENDS AND CAPITAL GAINS AND DO NOT REFLECT TAXES THAT A SHAREHOLDER WOULD PAY ON FUND DISTRIBUTIONS OR ON THE REDEMPTION OF FUND SHARES. THE INVESTMENT RETURN AND PRINCIPAL VALUE WILL FLUCTUATE SO THAT AN INVESTOR'S SHARES, WHEN REDEEMED MAY BE WORTH MORE OR LESS THAN THE ORIGINAL COST. FOR PERFORMANCE DATA CURRENT TO THE MOST RECENT MONTH END, VISIT OUR WEBSITE AT WWW.STICLASSICFUNDS.COM. The yield quotation more closely reflects the current earnings of the Fund than the total return. MATURITY DISTRIBUTION (as of March 31, 2006)(2) as a percentage of total investments (PIE CHART) 1-2 Days 60.8% 3-14 Days 33.3% 30-89 Days 3.2% 90-365 Days 2.7%
(2) Portfolio composition is subject to change 6 This page is intentionally left blank. 7 SCHEDULES OF PORTFOLIO INVESTMENTS STI CLASSIC FUNDS March 31, 2006 (Amounts in thousands, except Shares) CLASSIC INSTITUTIONAL CASH MANAGEMENT MONEY MARKET FUND
- -------------------------------------------------------- Principal Amount($) Value($) - -------------------------------------------------------- CERTIFICATES OF DEPOSIT (16.0%) BANKS (13.6%) Calyon NY, 4.795%, 02/02/07 (b) 50,000 50,000 Canadian Imperial Bank NY, 4.800%, 01/29/07 (b) 75,000 75,000 PNC Bank N.A., 4.790%, 01/24/07 35,000 35,001 Regions Bank, 3.690%, 05/25/06 35,000 35,000 Royal Bank of Scotland NY, 4.765%, 01/24/07 55,000 55,002 Toronto Dominion Bank (The), 3.805%, 06/30/06 30,000 30,000 Toronto Dominion Bank (The), 4.720%, 12/29/06 75,000 75,004 Wells Fargo Bank N.A., 4.800%, 01/19/07 (b) 50,000 50,000 ---------- 405,007 ---------- DIVERSIFIED FINANCIAL SERVICES (2.4%) HBOS Treasury Services PLC, 3.675%, 06/02/06 35,000 35,001 HBOS Treasury Services PLC, 3.755%, 06/26/06 35,000 35,002 ---------- 70,003 ---------- Total Certificates of Deposit (Cost $475,010) 475,010 ---------- COMMERCIAL PAPERS (18.8%) BANKS (8.6%) Australia & New Zealand National Ltd., 3.607%, 04/27/06 (c) (d) 65,000 64,837 Australia & New Zealand National Ltd., 4.368%, 09/28/06 (c) (d) 30,000 29,372 Credit Suisse First Boston USA, Inc., 4.723%, 10/13/06 (c) (d) 50,000 48,765 DEPFA Bank PLC, 3.693%, 05/30/06 (c) (d) 30,000 29,825 Spintab AG, 4.930%, 06/29/06 (c) 50,000 49,398 UBS Finance Delaware LLC, 4.824%, 05/22/06 (c) 35,000 34,762 ---------- 256,959 ----------
- -------------------------------------------------------- Principal Amount($) Value($) - -------------------------------------------------------- DIVERSIFIED FINANCIAL SERVICES (8.5%) Bear Stearns & Co., Inc., 4.810%, 09/15/06 (b) (d) 50,000 50,000 Cheyne Finance LLC, 4.828%, 05/11/06 (c) (d) 25,000 24,867 Danske Corp., 4.736%, 12/29/06 (c) 50,000 48,292 New Center Asset Trust, Ser A-1, 4.540%, 04/03/06 (c) 50,000 49,988 Surrey Funding Corp., 4.931%, 06/30/06 (c) (d) 50,000 49,391 Whistlejacket Capital Ltd., 4.815%, 04/05/06 (c) (d) 30,000 29,984 ---------- 252,522 ---------- INSURANCE (1.7%) Swiss RE Financial Products, 4.705%, 05/25/06 (c) (d) 50,000 49,652 ---------- Total Commercial Papers (Cost $559,133) 559,133 ---------- CORPORATE BONDS (37.8%) BANKS (5.0%) Marshall & Ilsley Bank, 5.176%, 12/15/06 100,000 100,259 National City Bank, 4.795%, 01/22/07 (b) 50,000 50,000 ---------- 150,259 ---------- DIVERSIFIED FINANCIAL SERVICES (28.9%) Beta Finance, Inc., 4.820%, 07/25/06 (b) (d) 30,000 30,000 Beta Finance, Inc., 4.510%, 10/20/06 (d) 30,000 30,000 Beta Finance, Inc., 4.808%, 01/11/07 (b) (d) 30,000 29,998 BMW US Capital LLC, 4.149%, 06/07/06 (b) 50,000 50,031 CC USA, Inc., 4.850%, 03/20/07 (b) (d) 30,000 29,997 Cheyne Finance LLC, 4.817%, 03/26/07 (b) (d) 50,000 49,994 K2 (USA) LLC, 4.820%, 11/15/06 (b) (d) 50,000 49,997 K2 (USA) LLC, 4.810%, 01/11/07 (b) (d) 35,000 34,997 Liberty Light US Capital, 4.680%, 05/11/06 (b) (d) 50,000 49,999 Liberty Light US Capital, 4.820%, 01/12/07 (b) (d) 75,000 74,995
See Notes to Financial Statements. 8 SCHEDULES OF PORTFOLIO INVESTMENTS STI CLASSIC FUNDS March 31, 2006 (Amounts in thousands, except Shares) CLASSIC INSTITUTIONAL CASH MANAGEMENT MONEY MARKET FUND -- CONTINUED
- -------------------------------------------------------- Principal Amount($) Value($) - -------------------------------------------------------- DIVERSIFIED FINANCIAL SERVICES--CONTINUED Liquid Funding Ltd., 4.641%, 05/02/06 (b) (d) 50,000 50,000 Liquid Funding Ltd., 4.810%, 08/29/06 (b) (d) 50,000 50,000 Liquid Funding Ltd., 4.845%, 12/29/06 (b) (d) 35,000 34,996 Morgan Stanley, 4.721%, 04/04/07 (b) 25,000 25,000 Sigma Finance, Inc., 4.820%, 08/04/06 (b) (d) 25,000 25,000 Sigma Finance, Inc., 4.820%, 01/03/07 (b) (d) 35,000 35,000 Sigma Finance, Inc., 4.820%, 01/16/07 (b) (d) 50,000 50,000 Stanfield Victoria Funding LLC, 4.815%, 12/15/06 (b) (d) 50,000 49,991 Stanfield Victoria Funding LLC, 4.830%, 01/08/07 (b) (d) 35,000 34,997 Whistlejacket Capital Ltd., 4.820%, 01/12/07 (b) (d) 50,000 49,994 Whistlejacket Capital Ltd., 4.820%, 01/17/07 (b) (d) 25,000 24,997 ---------- 859,983 ---------- INVESTMENT COMPANIES (3.9%) Dorada Finance, Inc., 4.820%, 07/25/06 (b) (d) 30,000 30,000 Dorada Finance, Inc., 4.235%, 09/11/06 (d) 35,000 35,000 Dorada Finance, Inc., 4.810%, 01/08/07 (b) (d) 50,000 49,996 ---------- 114,996 ---------- Total Corporate Bonds (Cost $1,125,238) 1,125,238 ---------- DEMAND NOTES (1.0%) DIVERSIFIED FINANCIAL SERVICES (1.0%) Carmichael Properties LLC, 4.880%, 10/01/20 (b) 2,785 2,785 Gasmor Corp., 4.910%, 02/01/31 (b) 3,520 3,520
- -------------------------------------------------------- Principal Amount($) Value($) - -------------------------------------------------------- DIVERSIFIED FINANCIAL SERVICES--CONTINUED LP Pinewood SPV LLC, 4.830%, 02/01/18 (b) 14,900 14,900 Sprenger Enterprises, Inc., 4.880%, 10/01/35 (b) 10,000 10,000 ---------- Total Demand Notes (Cost $31,205) 31,205 ---------- MASTER NOTES (5.2%) BANKS (5.2%) Bank of America Corp., 4.945%, 09/14/06 (b) 154,960 154,960 ---------- Total Master Notes (Cost $154,960) 154,960 ---------- MUNICIPAL BONDS (16.8%) ALABAMA (0.3%) Alabaster, Ser A, GO, 4.830%, 04/01/14, AMBAC (b) 9,355 9,355 ---------- ALASKA (3.2%) Alaska State Housing Finance Corp., Ser C, RB, 4.780%, 12/01/32 (b) 73,900 73,900 Alaska State Housing Finance Corp., Ser D, RB, 4.920%, 12/01/32 (b) 20,200 20,200 ---------- 94,100 ---------- CALIFORNIA (1.7%) California Housing Finance Agency, Ser C, RB, 4.890%, 02/01/41, LOC: Landesbank Hessen-Thueringen (b) 3,300 3,300 Oakland-Alameda County Coliseum Authority, Ser D, RB, 4.840%, 02/01/11 (b) 23,800 23,800 Santa Rosa Rancheria, Tachi Yokut Tribe, RB, 4.850%, 09/01/19, LOC: Bank One N.A. (b) 22,000 22,000 ---------- 49,100 ----------
See Notes to Financial Statements. 9 SCHEDULES OF PORTFOLIO INVESTMENTS STI CLASSIC FUNDS March 31, 2006 (Amounts in thousands, except Shares) CLASSIC INSTITUTIONAL CASH MANAGEMENT MONEY MARKET FUND -- CONTINUED
- -------------------------------------------------------- Principal Amount($) Value($) - -------------------------------------------------------- COLORADO (4.1%) Colorado Housing & Finance Authority, RB, 4.920%, 11/01/32, LOC: JP Morgan Chase Bank (b) 31,255 31,255 Colorado Housing & Finance Authority, RB, 4.920%, 11/01/33, LOC: JP Morgan Chase Bank (b) 17,350 17,350 Colorado Housing & Finance Authority, RB, 4.920%, 10/01/34, FHLB (b) 19,500 19,500 Colorado Housing & Finance Authority, RB, 4.920%, 11/01/34, LOC: Dexia Credit Local (b) 22,905 22,905 Colorado Housing & Finance Authority, RB, 4.920%, 11/01/35, LOC: Lloyds TSB Bank PLC (b) 6,475 6,475 Colorado Housing & Finance Authority, RB, 4.920%, 05/01/41, LOC: Landesbank Hessen-Thueringen (b) 21,200 21,200 ---------- 118,685 ---------- FLORIDA (0.2%) Florida Housing Finance Corp., RB, 4.830%, 01/15/35, FNMA (b) 2,500 2,500 Florida Housing Finance Corp., RB, 4.890%, 06/15/36, LOC: Bank of America N.A. (b) 2,900 2,900 Orange County Housing Finance Authority, Multifamily, Ser D, RB, 4.870%, 07/15/34 (b) 1,900 1,900 ---------- 7,300 ---------- ILLINOIS (1.8%) Champaign, Ser B, GO, 4.880%, 01/01/24, LOC: Bank One N.A. (b) 4,900 4,900 Illinois Student Assistance Community, Student Loan, Ser D, RB, 4.830%, 09/01/23, LOC: Bank of America N.A. (b) 40,000 40,000
- -------------------------------------------------------- Principal Amount($) Value($) - -------------------------------------------------------- ILLINOIS--CONTINUED Wheaton College, University Improvements, Ser A, RB, 4.920%, 10/01/35, LOC: JP Morgan Chase Bank (b) 10,000 10,000 ---------- 54,900 ---------- MICHIGAN (1.5%) Michigan State Housing Development Authority, Rental Housing, Ser C, RB, 4.820%, 10/01/20 (b) 45,035 45,035 ---------- MISSISSIPPI (1.7%) Mississippi Development Bank Special Obligation, Mceda Board Project, RB, 4.880%, 12/01/23, AMBAC (b) 3,820 3,820 Mississippi State, Nissan Project, Ser A, GO, 4.880%, 11/01/28, LOC: Bank of America N.A. (b) 47,700 47,700 ---------- 51,520 ---------- NEW YORK (1.2%) Babylon Industrial Development Agency, Topiderm, Inc. Project, Ser B, RB, 4.860%, 03/01/24, LOC: Citibank N.A. (b) 2,450 2,450 New York City Housing Development Corp., Chelsea Center, RB, 4.820%, 06/01/33, LOC: Bayerische Landesbank (b) 27,500 27,500 New York State Housing Finance Agency, Service Contract, RB, 4.850%, 09/15/08, LOC: Dexia Credit Local (b) 7,200 7,200 ---------- 37,150 ---------- TEXAS (0.2%) Texas State, Veteran Housing Fund, Ser II-D, GO, 4.850%, 06/01/20, LOC: Dexia Credit Local (b) 7,000 7,000 ----------
See Notes to Financial Statements. 10 SCHEDULES OF PORTFOLIO INVESTMENTS STI CLASSIC FUNDS March 31, 2006 (Amounts in thousands, except Shares) CLASSIC INSTITUTIONAL CASH MANAGEMENT MONEY MARKET FUND -- CONTINUED
- -------------------------------------------------------- Principal Amount($) Value($) - -------------------------------------------------------- VIRGINIA (0.9%) Newport News Economic Development Authority, Ship Building Project, Ser A, RB, 4.930%, 07/01/31, LOC: First Union National Bank (b) 21,305 21,305 Newport News Economic Development Authority, Ship Building Project, Ser B, RB, 4.880%, 07/01/31, LOC: First Union National Bank (b) 4,280 4,280 ---------- 25,585 ---------- Total Municipal Bonds (Cost $499,730) 499,730 ---------- REPURCHASE AGREEMENTS (3.8%) ABN AMRO Bank N.V., 4.725%, dated 03/31/06, to be repurchased on 04/03/06, repurchase price $8,110,651 (collateralized by U.S. Treasury Obligations; DN, due 08/31/06; market value $8,269,821) 8,108 8,108 Bear Stearns & Co., Inc., 4.745%, dated 03/31/06, to be repurchased on 04/03/06, repurchase price $9,900,768 (collateralized by U.S. Government Agencies; 5.000%, due 06/15/31; market value $10,095,181) 9,897 9,897 BNP Paribas, 4.655%, dated 03/31/06, to be repurchased on 04/03/06, repurchase price $27,817,456 (collateralized by U.S. Government Agencies; 4.600-5.020%, due 04/11/08 - 11/07/08; market value $28,364,910) 27,807 27,807
- -------------------------------------------------------- Principal Amount($) Value($) - -------------------------------------------------------- REPURCHASE AGREEMENTS--CONTINUED Lehman Brothers, Inc., 4.755%, dated 03/31/06, to be repurchased on 04/03/06, repurchase price $8,526,776 (collateralized by U.S. Government Agencies; DN, due 01/01/24 - 02/01/36; market value $8,694,873) 8,523 8,523 Merrill Lynch & Co., Inc., 4.725%, dated 03/31/06, to be repurchased on 04/03/06, repurchase price $11,103,825 (collateralized by U.S. Government Agencies; 5.500%, due 02/01/35; market value $11,322,720) 11,099 11,099 UBS Warburg LLC, 4.755%, dated 03/31/06, to be repurchased on 04/03/06, repurchase price $47,748,179 (collateralized by U.S. Government Agencies; DN-6.000%, due 08/15/29 - 04/25/34; market value $48,685,287) 47,729 47,729 ---------- Total Repurchase Agreements (Cost $113,163) 113,163 ---------- Total Investments (Cost $2,958,439) (a) -- 99.4% 2,958,439 Other assets in excess of liabilities -- 0.6% 17,082 ---------- Net Assets -- 100.0% $2,975,521 ==========
- --------------- (a) Aggregate cost for federal income tax and financial reporting purposes is the same. (b) Variable rate security. Rate presented represents rate in effect at March 31, 2006. Maturity date represents actual maturity date. (c) Rate represents the effective yield at purchase. (d) Rule 144A, Section 4(2) or other security which is restricted as to resale to institutional investors. The Fund's advisor has deemed this security to be liquid based upon procedures approved by the Board of Trustees. See Notes to Financial Statements. 11 SCHEDULES OF PORTFOLIO INVESTMENTS STI CLASSIC FUNDS March 31, 2006 (Amounts in thousands, except Shares) CLASSIC INSTITUTIONAL CASH MANAGEMENT MONEY MARKET FUND -- CONCLUDED AMBAC -- Security insured by the American Municipal Bond Assurance Corporation DN -- Discount Note FHLB -- Security insured by Federal Home Loan Bank FNMA -- Security insured by Fannie Mae GO -- General Obligation LLC -- Limited Liability Corporation LOC -- Line of Credit PLC -- Public Limited Company RB -- Revenue Bond Ser -- Series
See Notes to Financial Statements. 12 SCHEDULES OF PORTFOLIO INVESTMENTS STI CLASSIC FUNDS March 31, 2006 (Amounts in thousands, except Shares) CLASSIC INSTITUTIONAL MUNICIPAL CASH RESERVE MONEY MARKET FUND
- ------------------------------------------------------- Shares or Principal Amount($) Value($) - ------------------------------------------------------- MUNICIPAL BONDS (98.1%) ALABAMA (0.6%) Alabama Special Care Facilities, Financing Authority Hospital Revenue, Depreciable Assets, RB, 3.130%, 04/01/15, FGIC (b) 600 600 Daphne-Villa, Mercy Alabama Special Care Facilities Financing Authority, Mercy Medical Project, RB, 3.190%, 12/01/30, LOC: Southtrust Bank N.A. (b) 100 100 -------- 700 -------- ARKANSAS (0.3%) Arkansas State Development Finance Authority, Solid Waste Disposal, Waste Management of Arkansas Project, RB, AMT, 3.200%, 06/01/28, LOC: Fleet National Bank (b) 350 350 -------- CALIFORNIA (12.7%) California State, Ser MT-162, GO, 3.100%, 08/01/17, Callable 08/01/15 @ 100, FSA (b) 2,000 2,000 California Statewide Communities Development Authority, Multifamily, RB, AMT, 3.270%, 08/01/29, LOC: Merrill Lynch Capital Services (b) 2,000 2,000 Los Angeles Regional Airports Improvement Corp., Terminal Facility, Los Angeles International Airport, RB, AMT, 3.230%, 12/01/25, LOC: Societe Generale (b) 7,000 7,000 Pajaro Valley Unified School District, Ser PT-2779, GO, 3.210%, 08/01/22, Callable 08/01/15 @ 100, FSA (b) 5,000 5,000 -------- 16,000 --------
- ------------------------------------------------------- Shares or Principal Amount($) Value($) - ------------------------------------------------------- COLORADO (2.4%) Dawson Ridge Metropolitan District No 1, Ser PZ-88, GO, 3.220%, 10/01/22, LOC: Merrill Lynch Capital Services (b) 3,000 3,000 -------- CONNECTICUT (0.8%) Connecticut State, GO, 3.190%, 06/15/11, LOC: Merrill Lynch Capital Services (b) 950 950 -------- FLORIDA (11.9%) Collier County Housing Finance Authority, Brittany Apartments Project, Ser A, RB, AMT, 3.200%, 07/15/34, FNMA (b) 2,050 2,050 Florida Housing Finance Agency, Ashley Lake II Project, RB, AMT, 3.200%, 12/01/11, FHLMC (b) 250 250 Florida Housing Finance Agency, Multifamily Housing, RB, AMT, 3.200%, 12/01/25 (b) 355 355 Florida Housing Finance Corp., Multifamily Housing, Northbridge Apartments, Ser V-1, RB, AMT, 3.190%, 06/15/36, LOC: Bank of America N.A. (b) 5,000 5,000 Florida Housing Finance Corp., Ser MT-169, RB, 3.250%, 10/01/32, FHLB 3,000 3,000 Lake County School Board, COP, 3.210%, 06/01/30, AMBAC (b) 2,000 2,000 Marion County Hospital District, Health Systems Improvement, Munroe Regional Health, RB, 3.200%, 10/01/30, LOC: Amsouth Bank of Florida (b) 980 980
See Notes to Financial Statements. 13 SCHEDULES OF PORTFOLIO INVESTMENTS STI CLASSIC FUNDS March 31, 2006 (Amounts in thousands, except Shares) CLASSIC INSTITUTIONAL MUNICIPAL CASH RESERVE MONEY MARKET FUND -- CONTINUED
- ------------------------------------------------------- Shares or Principal Amount($) Value($) - ------------------------------------------------------- FLORIDA--CONTINUED Orange County Housing Finance Authority, Multifamily Housing, Cove at Lady Lake Apartments, Ser A, RB, AMT, 3.210%, 05/15/38, LOC: Amsouth Bank (b) (c) 450 450 Orange County Housing Finance Authority, Multifamily Housing, Northbridge Phase II, Ser A, RB, AMT, 3.200%, 09/15/36, LOC: Southtrust Bank N.A. (b) 900 900 -------- 14,985 -------- GEORGIA (0.6%) Newnan Development Authority, Multifamily Housing, Club at Newnan Crossing Project, RB, AMT, 3.220%, 09/15/36, LOC: Bank of America N.A. (b) 800 800 -------- ILLINOIS (5.7%) Chicago O'Hare International Airport, General Airport, Second Lien, Ser B, RB, 3.130%, 01/01/15, LOC: Societe Generale (b) 800 800 Chicago, Single Family Mortgage, RB, AMT, 3.250%, 04/01/07, FNMA (b) 400 400 Illinois Development Finance Authority, Lyric Opera Chicago Project, RB, 3.220%, 12/01/28 (b) 1,000 1,000 Illinois Finance Authority, Alexian Brothers Health, RB, 3.180%, 04/01/35, LOC: Bank One N.A. (b) 200 200 Illinois Health Facilities Authority, Decatur Memorial Hospital Project, Ser A, 3.190%, 11/15/24, MBIA (b) 200 200
- ------------------------------------------------------- Shares or Principal Amount($) Value($) - ------------------------------------------------------- ILLINOIS--CONTINUED Illinois Housing Development Authority, Illinois Center Apartments, RB, 3.130%, 01/01/08, FHLMC (b) 4,200 4,200 Jackson-Union Counties Regional Port Facilities, Enron Transportation Services, RB, 3.200%, 04/01/24, LOC: First Union National Bank (b) 225 225 Metropolitan Pier & Exposition Authority, Dedicated State Tax, RB, 3.250%, 12/15/21, MBIA (b) 100 100 -------- 7,125 -------- INDIANA (8.5%) Evansville Vanderburgh Public Leasing Corp, Ser PT-2694, RB, 3.210%, 01/15/24, Callable 07/15/15 @ 100, AMBAC (b) 2,000 2,000 Merrillville Multi School Building Corp, Ser PT-2842, RB, 3.210%, 07/15/22, Callable 07/15/15 @ 100, FGIC (b) 3,500 3,500 Wayne Township, Marion County School Building Corp., RB, 3.210%, 07/15/26, LOC: Merrill Lynch Capital Services (b) 2,200 2,200 West Clark 2000 School Building Corp, Ser PT-2631, RB, 3.210%, 01/15/23, Callable 01/15/15 @ 100, MBIA (b) 2,985 2,985 -------- 10,685 -------- IOWA (1.8%) Des Moines City, 3.150%, 04/05/06 2,300 2,300 --------
See Notes to Financial Statements. 14 SCHEDULES OF PORTFOLIO INVESTMENTS STI CLASSIC FUNDS March 31, 2006 (Amounts in thousands, except Shares) CLASSIC INSTITUTIONAL MUNICIPAL CASH RESERVE MONEY MARKET FUND -- CONTINUED
- ------------------------------------------------------- Shares or Principal Amount($) Value($) - ------------------------------------------------------- KENTUCKY (0.3%) Kentucky Economic Development Finance Authority, Hospital Facilities, Health Alliance, Ser C, RB, 3.190%, 01/01/22, MBIA (b) 400 400 -------- MARYLAND (2.5%) Montgomery County Housing Opportunities Commission, Multifamily Housing Development, Ser C, RB, 3.140%, 07/01/37, LOC: DEPFA Bank PLC (b) 1,000 1,000 Montgomery County Housing Opportunities Commission, RB, AMT, 3.190%, 06/01/30, FNMA (b) 2,200 2,200 -------- 3,200 -------- MASSACHUSETTS (4.6%) Massachusetts State Development Finance Agency, Boston University, Ser R-2, RB, 3.140%, 10/01/42 (b) 4,000 4,000 Massachusetts State Development Finance Agency, Multifamily, Ser PT-514, RB, 3.280%, 01/01/24, LOC: Merrill Lynch Capital Services (b) 1,800 1,800 -------- 5,800 -------- MICHIGAN (4.0%) Michigan State Housing Development Authority, Multifamily, RB, AMT, 3.210%, 06/01/18, LOC: Bank of New York (b) 100 100 Michigan State Housing Development Authority, Rental Housing, Ser A, RB, AMT, 3.190%, 10/01/39, FGIC (b) 5,000 5,000 -------- 5,100 --------
- ------------------------------------------------------- Shares or Principal Amount($) Value($) - ------------------------------------------------------- MISSISSIPPI (4.0%) Mississippi Development Bank, Special Obligation, Ser PT-3303, RB, 3.210%, 12/01/27, Callable 12/01/15 @ 100, AMBAC (b) 5,000 5,000 -------- NEW JERSEY (3.0%) Essex County Improvement Authority, 3.200%, 10/01/20, FGIC (b) 2,250 2,250 New Jersey Transportation Trust Fund Authority, Ser PT-3314, RB, 3.200%, 06/15/19, Callable 06/15/15 @ 100, FSA (b) 1,490 1,490 -------- 3,740 -------- NEW YORK (18.6%) Long Island Power Authority, New York Electric System, Ser PA-1150, RB, 3.200%, 09/01/33, LOC: Merrill Lynch Capital Services (b) 5,000 5,000 New York City Housing Development Corp., Multifamily, East 165th Street Project, Ser A, RB, AMT, 3.210%, 06/01/36, LOC: Citibank N.A. (b) 3,800 3,800 New York City Housing Development Corp., Multifamily, Manhattan Court Development, Ser A, RB, AMT, 3.230%, 06/01/36, LOC: Citibank N.A. (b) 100 100 New York City Housing Development Corp., Multifamily, St Renaissance Court, Ser A, RB, AMT, 3.190%, 06/01/37, FHLMC (b) 2,000 2,000 New York City Transitional Finance Authority, NYC Recovery, Ser 3, Subser 3C, RB, 3.130%, 11/01/22, LOC: Dexia Credit Local (b) 1,000 1,000
See Notes to Financial Statements. 15 SCHEDULES OF PORTFOLIO INVESTMENTS STI CLASSIC FUNDS March 31, 2006 (Amounts in thousands, except Shares) CLASSIC INSTITUTIONAL MUNICIPAL CASH RESERVE MONEY MARKET FUND -- CONTINUED
- ------------------------------------------------------- Shares or Principal Amount($) Value($) - ------------------------------------------------------- NEW YORK--CONTINUED New York Housing Finance Agency, Avalon Chrystie Place I Housing, RB, AMT, 3.210%, 11/01/36, LOC: Fleet National Bank (b) 300 300 New York State Dormitory Authority, Ser PT-746, RB, 3.400%, 10/01/17, Callable 10/01/12 @ 100, MBIA (b) 3,500 3,500 New York, Ser PT-2878, GO, 3.200%, 04/01/25, Callable 04/01/15 @ 100, LOC: Merrill Lynch Capital Services (b) 3,900 3,900 New York, Ser PT-3171, GO, 3.200%, 09/01/22, Callable 09/01/15 @ 100, XCLA (b) 3,980 3,980 -------- 23,580 -------- NORTH CAROLINA (1.7%) North Carolina Medical Care Commission, NC Baptist Hospital Project, Ser B, RB, 3.180%, 06/01/22, LOC: Wachovia Bank of North Carolina (b) 1,200 1,200 Raleigh, Downtown Improvement Projects, Ser B, COP, 3.170%, 02/01/34, LOC: Depha Bank PLC (b) 1,000 1,000 -------- 2,200 -------- OHIO (2.8%) Ohio State Environmental Improvement, Newark Group Industries, Inc. Project, RB, AMT, 3.220%, 12/01/26, LOC: JP Morgan Chase Bank (b) 3,500 3,500 -------- OTHER (0.8%) MuniMae Trust, RB, AMT, 3.260%, 12/17/06, FHLMC (b) (c) 1,005 1,005 --------
- ------------------------------------------------------- Shares or Principal Amount($) Value($) - ------------------------------------------------------- PUERTO RICO (0.8%) Puerto Rico Commonwealth, Highway & Transportation Authority, RB, 3.160%, 01/01/08, MBIA (b) (c) 1,000 1,000 -------- TENNESSEE (0.2%) Metropolitan Government Nashville & Davidson County, Industrial Development Board, Multifamily Housing, Chimneytop II Project, RB, 3.180%, 09/01/06, LOC: Bank of America N.A. (b) 200 200 -------- TEXAS (0.7%) Mesquite Industrial Development Corp., Championship Rodeo, RB, 3.450%, 12/01/10, LOC: Bank One Texas N.A. (b) 925 925 -------- UTAH (2.4%) Utah Water Finance Agency, RB, 3.210%, 10/01/25, AMBAC (b) 3,000 3,000 -------- VIRGINIA (6.4%) Loudoun County Industrial Development Authority, Howard Hughes Medical Institute, Ser C, RB, 3.140%, 02/15/38 (b) 5,000 5,000 Norfolk Economic Development Authority, Hospital Facilities, Ser R-322, RB, 3.210%, 11/01/34, LOC: Citigroup Global Markets (b) 3,000 3,000 -------- 8,000 -------- Total Municipal Bonds (Cost $123,545) 123,545 --------
See Notes to Financial Statements. 16 SCHEDULES OF PORTFOLIO INVESTMENTS STI CLASSIC FUNDS March 31, 2006 (Amounts in thousands, except Shares) CLASSIC INSTITUTIONAL MUNICIPAL CASH RESERVE MONEY MARKET FUND -- CONCLUDED
- ------------------------------------------------------- Shares or Principal Amount($) Value($) - ------------------------------------------------------- MONEY MARKETS (1.6%) Fidelity Tax Free Fund 2,040,295 2,040 -------- Total Money Markets (Cost $2,040) 2,040 -------- Total Investments (Cost $125,585) (a) -- 99.7% 125,585 Other assets in excess of liabilities -- 0.3% 397 -------- Net Assets -- 100.0% $125,982 ========
- --------------- (a) Aggregate cost for federal income tax and financial reporting purposes is the same. (b) Variable rate security. Rate presented represents rate in effect at March 31, 2006. Maturity date represents actual maturity date. (c) Rule 144A, Section 4(2) or other security which is restricted as to resale to institutional investors. The Fund's advisor has deemed this security to be liquid based upon procedures approved by the Board of Trustees. AMBAC -- Security insured by the American Municipal Bond Assurance Corporation AMT -- Alternative Minimum Tax Paper COP -- Certificates of Participation FGIC -- Security insured by the Financial Guaranty Insurance Company FHLB -- Security insured by Federal Home Loan Bank FHLMC -- Security insured by Freddie Mac FNMA -- Security insured by Fannie Mae FSA -- Security insured by Financial Security Assurance GO -- General Obligation LOC -- Line of Credit MBIA -- Security insured by the Municipal Bond Insurance Association PLC -- Public Limited Company RB -- Revenue Bond Ser -- Series XLCA -- Security insured by XL Capital Assurance, Inc.
See Notes to Financial Statements. 17 SCHEDULES OF PORTFOLIO INVESTMENTS STI CLASSIC FUNDS March 31, 2006 (Amounts in thousands, except Shares) CLASSIC INSTITUTIONAL U.S. GOVERNMENT SECURITIES MONEY MARKET FUND
- ------------------------------------------------------- Principal Amount($) Value($) - ------------------------------------------------------- U.S. GOVERNMENT AGENCIES (58.3%) FANNIE MAE (16.6%) 3.587%, 04/28/06 (c) 20,000 19,948 4.780%, 05/09/06 (b) 25,000 25,000 4.665%, 05/22/06 (b) 20,000 20,000 3.835%, 05/26/06 (c) 15,000 14,914 4.760%, 07/17/06 (b) 25,000 24,999 4.210%, 09/01/06 (c) 10,000 9,828 4.728%, 12/01/06 (c) 10,000 9,697 4.646%, 12/29/06 (c) 35,000 33,819 -------- 158,205 -------- FEDERAL FARM CREDIT BANK (11.0%) 3.460%, 05/15/06 (c) 10,000 9,958 4.760%, 12/28/06 (b) 20,000 20,001 4.750%, 01/22/07 (b) 74,800 74,799 -------- 104,758 -------- FEDERAL HOME LOAN BANK (20.4%) 3.604%, 05/02/06 (c) 15,000 14,955 4.710%, 07/21/06 (b) 15,000 14,999 4.720%, 07/21/06 (b) 25,000 25,000 4.205%, 08/25/06 10,000 10,002 4.369%, 09/27/06 (c) 10,000 9,791 4.705%, 11/16/06 (b) 15,000 15,000 4.741%, 12/12/06 (c) 30,000 29,050 4.750%, 01/08/07 (b) 10,000 9,999 4.800%, 02/08/07 (b) 15,000 15,000 4.800%, 02/15/07 (b) 30,000 30,001 4.730%, 03/21/07 (b) 20,000 20,000 -------- 193,797 -------- FREDDIE MAC (10.3%) 3.543%, 04/18/06 (c) 10,000 9,984 3.639%, 05/30/06 (c) 20,000 19,885 3.995%, 07/25/06 (c) 10,000 9,877 4.122%, 07/31/06 (c) 10,000 9,867 4.146%, 08/04/06 (c) 10,000 9,861 4.329%, 09/29/06 (c) 10,000 9,791 4.631%, 10/23/06 (c) 20,000 19,489 4.671%, 12/01/06 (c) 10,000 9,697 -------- 98,451 -------- Total U.S. Government Agencies (Cost $555,211) 555,211 --------
- ------------------------------------------------------- Principal Amount($) Value($) - ------------------------------------------------------- REPURCHASE AGREEMENTS (41.7%) ABN AMRO Bank N.V., 4.725%, dated 03/31/06, to be repurchased on 04/03/06, repurchase price $98,271,225 (collateralized by U.S. Treasury Obligations, 5.250%, due 02/15/29; total market value $100,197,407) 98,233 98,233 BNP Paribas, 4.655%, dated 03/31/06, to be repurchased on 04/03/06, repurchase price $60,624,902 (collateralized by U.S. Government Agencies, DN - 4.500%, due 04/17/07 - 01/22/16; total market value $61,817,544) 60,601 60,601 Lehman Brothers, Inc., 4.755%, dated 03/31/06, to be repurchased on 04/03/06, repurchase price $45,037,379 (collateralized by U.S. Government Agencies, DN, due 12/01/34; total market value $45,921,984) 45,020 45,020 Merrill Lynch & Co., Inc., 4.725%, dated 03/31/06, to be repurchased on 04/03/06, repurchase price $40,034,520 (collateralized by U.S. Government Agencies, 5.500%, due 02/01/35; total market value $40,822,702) 40,019 40,019 Morgan Stanley, 4.705%, dated 03/31/06, to be repurchased on 04/03/06, repurchase price $41,178,599 (collateralized by U.S. Government Agencies, 5.500%, due 05/01/33 - 11/01/34; total market value $41,985,710) 41,162 41,162
See Notes to Financial Statements. 18 SCHEDULES OF PORTFOLIO INVESTMENTS STI CLASSIC FUNDS March 31, 2006 (Amounts in thousands, except Shares) CLASSIC INSTITUTIONAL U.S. GOVERNMENT SECURITIES MONEY MARKET FUND -- CONCLUDED
- ------------------------------------------------------- Principal Amount($) Value($) - ------------------------------------------------------- REPURCHASE AGREEMENTS--CONTINUED UBS Warburg LLC, 4.755%, dated 03/31/06, to be repurchased on 04/03/06, repurchase price $111,761,727 (collateralized by U.S. Government Agencies, DN - 5.500%, due 03/25/26 - 04/25/34; total market value $113,953,218) 111,717 111,717 -------- Total Repurchase Agreements (Cost $396,752) 396,752 -------- Total Investments (Cost $951,963) (a) -- 100.0% 951,963 Liabilities in excess of other assets -- (0.0)% (188) -------- Net Assets -- 100.0% $951,775 ========
- --------------- (a) Aggregate cost for federal income tax and financial reporting purposes is the same. (b) Variable rate security. Rate presented represents rate in effect at March 31, 2006. Maturity date represents actual maturity date. (c) Rate represents the effective yield at purchase. DN -- Discount Note LLC -- Limited Liability Corporation
See Notes to Financial Statements. 19 SCHEDULES OF PORTFOLIO INVESTMENTS STI CLASSIC FUNDS March 31, 2006 (Amounts in thousands, except Shares) CLASSIC INSTITUTIONAL U.S. TREASURY SECURITIES MONEY MARKET FUND
- -------------------------------------------------------- Principal Amount($) Value($) - -------------------------------------------------------- U.S. TREASURY OBLIGATIONS (39.3%) U.S. TREASURY BILLS (33.4%) 4.689%, 04/17/06 (b) 500,000 499,091 4.084%, 04/20/06 (b) 492,000 490,743 ---------- 989,834 ---------- U.S. TREASURY NOTES (5.9%) 2.500%, 05/31/06 96,400 96,103 2.375%, 08/31/06 56,600 56,128 2.625%, 11/15/06 24,100 23,839 ---------- 176,070 ---------- Total U.S. Treasury Obligations (Cost $1,165,904) 1,165,904 ---------- REPURCHASE AGREEMENTS (61.0%) ABN AMRO Bank N.V., 4.435%, dated 03/31/06, to be repurchased on 04/03/06, repurchase price $319,749,904 (collateralized by U.S. Treasury Obligations; DN-8.875%, due 08/31/06 - 08/15/25; total market value $326,024,578) 319,632 319,632 Bear Stearns & Co., Inc., 4.405%, dated 03/31/06, to be repurchased on 04/03/06, repurchase price $52,762,474 (collateralized by U.S. Treasury Obligations; 1.875% - 8.750%, 07/15/15 - 08/15/20; total market value $54,072,915) 52,743 52,743 BNP Paribas, 4.405%, dated 03/31/06, to be repurchased on 04/03/06, repurchase price $408,553,115 (collateralized by U.S. Treasury Obligations; DN-3.375%, 08/10/06 - 01/15/07; total market value $416,572,215) 408,403 408,403
- -------------------------------------------------------- Principal Amount($) Value($) - -------------------------------------------------------- REPURCHASE AGREEMENTS--CONTINUED Deutsche Bank AG, 4.455%, dated 03/31/06, to be repurchased on 04/03/06, repurchase price $27,347,161 (collateralized by U.S. Treasury Obligations; DN-8.750%, 04/20/06 - 05/15/20; total market value $27,884,125) 27,337 27,337 Dresdner Bank AG, 4.455%, dated 03/31/06, to be repurchased on 04/03/06, repurchase price $104,088,840 (collateralized by U.S. Treasury Obligations; DN-8.750%, 04/06/06 - 02/15/36; total market value $106,132,558) 104,050 104,050 Greenwich Capital Markets, Inc., 4.435%, dated 03/31/06, to be repurchased on 04/03/06, repurchase price $264,636,642 (collateralized by U.S. Treasury Obligations; 4.250% - 4.625%. 03/31/08 - 01/15/11; total market value $269,832,937) 264,539 264,539 JPMorgan Chase & Co., 4.355%, dated 03/31/06, to be repurchased on 04/03/06, repurchase price $57,086,136 (collateralized by U.S. Treasury Obligations; 4.500%, 02/15/16; total market value $58,209,725) 57,065 57,065 Lehman Brothers, Inc., 4.455%, dated 03/31/06, to be repurchased on 04/03/06, repurchase price $33,546,640 (collateralized by U.S. Treasury Obligations; DN-6.250%, 11/15/23 - 05/15/30; total market value $34,205,927) 33,534 33,534
See Notes to Financial Statements. 20 SCHEDULES OF PORTFOLIO INVESTMENTS STI CLASSIC FUNDS March 31, 2006 (Amounts in thousands, except Shares) CLASSIC INSTITUTIONAL U.S. TREASURY SECURITIES MONEY MARKET FUND -- CONCLUDED
- -------------------------------------------------------- Principal Amount($) Value($) - -------------------------------------------------------- REPURCHASE AGREEMENTS--CONTINUED Merrill Lynch & Co., Inc., 4.385%, dated 03/31/06, to be repurchased on 04/03/06, repurchase price $52,489,283 (collateralized by U.S. Treasury Obligations; 9.125%, 05/15/18; total market value $53,521,063) 52,470 52,470 Morgan Stanley, 4.445%, dated 03/31/06, to be repurchased on 04/03/06, repurchase price $98,550,993 (collateralized by U.S. Treasury Obligations; DN, 02/15/23 - 05/15/23; total market value $100,484,807) 98,515 98,515 UBS Warburg LLC, 4.455%, dated 03/31/06, to be repurchased on 04/03/06, repurchase price $394,923,051 (collateralized by U.S. Treasury Obligations; 3.625%, 01/15/08; total market value $402,675,809) 394,777 394,777 ---------- Total Repurchase Agreements (Cost $1,813,065) 1,813,065 ---------- Total Investments (Cost $2,978,969) (a) -- 100.3% 2,978,969 Liabilities in excess of other assets -- (0.3)% (8,730) ---------- Net Assets -- 100.0% $2,970,239 ==========
- --------------- (a) Aggregate cost for federal income tax purposes is $2,978,974 (amount in thousands). Unrealized appreciation/(depreciation) on a tax basis is as follows (amounts in thousands): Unrealized Appreciation....................... $-- Unrealized Depreciation....................... (5) --- Unrealized Appreciation (Depreciation)........ $(5) ===
(b) Rate represents the effective yield at purchase. DN -- Discount Note LLC -- Limited Liability Corporation
See Notes to Financial Statements. 21 STATEMENTS OF ASSETS AND LIABILITIES STI CLASSIC FUNDS March 31, 2006 (Amounts in thousands)
Classic Institutional Classic Classic Classic Cash Institutional Institutional Institutional Management Municipal Cash U.S. Government U.S. Treasury Money Market Reserve Money Securities Money Securities Money Fund Market Fund Market Fund Market Fund ------------- -------------- ---------------- ---------------- Assets: Total Investments, at Cost............................ $2,958,439 $125,585 $951,963 $2,978,969 ========== ======== ======== ========== Total Investments, at Value........................... $2,845,276 $125,585 $555,211 $1,165,904 Repurchase Agreements, at Cost........................ 113,163 -- 396,752 1,813,065 ---------- -------- -------- ---------- Total Investments..................................... 2,958,439 125,585 951,963 2,978,969 ---------- -------- -------- ---------- Interest and Dividends Receivable..................... 24,227 789 3,298 9,392 Receivable for Capital Shares Issued.................. 6,051 -- 1,140 1,402 Receivable for Investment Securities Sold............. -- -- -- 498,916 Prepaid Expenses and Other Assets..................... 15 -- 5 15 ---------- -------- -------- ---------- Total Assets.......................................... 2,988,732 126,374 956,406 3,488,694 ---------- -------- -------- ---------- Liabilities: Income Distributions Payable.......................... 11,577 366 3,165 10,197 Payable for Investment Securities Purchased........... 948 -- 1,224 507,176 Investment Advisory Fees Payable...................... 327 16 111 356 Administration Fees Payable........................... 68 -- 19 63 Compliance Services Fees Payable...................... 4 -- 1 4 Shareholder Service Fees.............................. -- -- -- 418 Custodian Fees Payable................................ 30 -- 9 26 Accrued Expenses...................................... 257 10 102 215 ---------- -------- -------- ---------- Total Liabilities..................................... 13,211 392 4,631 518,455 ---------- -------- -------- ---------- Total Net Assets...................................... $2,975,521 $125,982 $951,775 $2,970,239 ========== ======== ======== ========== Net Assets: Capital............................................... $2,975,709 $125,982 $951,775 $2,970,442 Undistributed Net Investment Income................... 1 -- -- 75 Accumulated Net Realized Gains (Losses) on Investment Transactions........................................ (189) -- -- (278) ---------- -------- -------- ---------- Total Net Assets...................................... $2,975,521 $125,982 $951,775 $2,970,239 ========== ======== ======== ========== NET ASSETS: Institutional Shares.................................. $2,975,521 $125,982 $951,775 $ 901,777 Corporate Trust Shares................................ N/A N/A N/A $2,068,462 SHARES OUTSTANDING: Institutional Shares.................................. 2,975,709 125,982 951,775 901,799 Corporate Trust Shares................................ N/A N/A N/A 2,068,643 NET ASSET VALUE OFFERING AND REDEMPTION PRICE PER SHARE: Institutional Shares.................................. $ 1.00 $ 1.00 $ 1.00 $ 1.00 Corporate Trust Shares................................ N/A N/A N/A $ 1.00
Amounts designated as "--" are $0 or have been rounded to $0. See Notes to Financial Statements. 22 STATEMENTS OF OPERATIONS STI CLASSIC FUNDS For the Year ended March 31, 2006 (Amounts in thousands)
Classic Institutional Classic Classic Classic Cash Institutional Institutional Institutional Management Municipal Cash U.S. Government U.S. Treasury Money Market Reserve Money Securities Money Securities Money Fund Market Fund* Market Fund Market Fund ------------- -------------- ---------------- ---------------- Investment Income: Interest Income....................................... $112,441 $1,575 $33,732 $98,724 Dividend Income....................................... -- 44 -- -- -------- ------ ------- ------- Total Investment Income............................... 112,441 1,619 33,732 98,724 -------- ------ ------- ------- Expenses: Investment Advisory Fees.............................. 4,413 82 1,520 4,426 Administration and Fund Accounting Fees............... 786 14 241 721 Shareholder Service Fees -- Corporate Trust Shares.... -- -- -- 4,603 Compliance Services Fees.............................. 26 -- 8 24 Custodian Fees........................................ 62 -- 18 59 Professional Fees..................................... 128 3 41 125 Insurance Fees........................................ 12 -- 15 33 Registration Fees..................................... 51 1 40 96 Transfer Agent Fees................................... (81) 1 (10) (10) Printing Fees......................................... 63 11 19 66 Trustees' Fees........................................ 47 1 14 45 Other Fees............................................ 86 12 27 43 -------- ------ ------- ------- Total Expenses........................................ 5,593 125 1,933 10,231 Less: Investment Advisory Fees Waived............... (626) (7) (3) (8) Less: Administration Fees Waived.................... (15) (14) (3) (16) -------- ------ ------- ------- Net Expenses.......................................... 4,952 104 1,927 10,207 -------- ------ ------- ------- Net Investment Income................................. 107,489 1,515 31,805 88,517 -------- ------ ------- ------- Net Realized Gain (Loss) on Investments: Net Realized Gain (Loss) on Investments Sold.......... (163) -- -- (37) -------- ------ ------- ------- Total Net Realized Gain (Loss) on Investments......... (163) -- -- (37) -------- ------ ------- ------- Net Change in Net Assets from Operations.............. $107,326 $1,515 $31,805 $88,480 ======== ====== ======= =======
* Commencement of operations on August 2, 2005. Amounts designated as "--" are $0 or have been rounded to $0. See Notes to Financial Statements. 23 STATEMENTS OF CHANGES IN NET ASSETS STI CLASSIC FUNDS For the Periods Indicated (Amounts in thousands)
Classic Institutional Classic Institutional Cash Management Municipal Cash Reserve Money Market Fund Money Market Fund ---------------------------------------- ---------------------- 04/01/05- 06/01/04- 06/01/03- 08/02/05-* 03/31/06 03/31/05 05/31/04 03/31/06 ------------ ----------- ----------- ---------------------- Operations: Net Investment Income..................................... $ 107,489 $ 37,381 $ 23,681 $ 1,515 Net Realized Gain (Loss) on Investments Sold.............. (163) (23) 81 -- ------------ ----------- ----------- --------- Change in Net Assets from Operations...................... 107,326 37,358 23,762 1,515 ------------ ----------- ----------- --------- Dividends and Distributions to Shareholders: Net Investment Income: Institutional Shares.................................... (107,488) (37,463) (23,681) (1,515) Net Realized Gains: Institutional Shares.................................... -- -- (15) -- ------------ ----------- ----------- --------- Total Dividends and Distributions......................... (107,488) (37,463) (23,696) (1,515) ------------ ----------- ----------- --------- Capital Transactions: Institutional Shares Proceeds from Shares Issued............................. 10,474,192 7,385,743 7,415,918 449,804 Reinvestment of Cash Distributions...................... 57,184 17,767 14,226 -- Cost of Shares Redeemed................................. (10,147,220) (7,180,727) (8,047,111) (323,822) ------------ ----------- ----------- --------- Change in Net Assets From Institutional Shares............ 384,156 222,783 (616,967) 125,982 ------------ ----------- ----------- --------- Change in Net Assets from Capital Transactions............ 384,156 222,783 (616,967) 125,982 ------------ ----------- ----------- --------- Change in Net Assets........................................ 383,994 222,678 (616,901) 125,982 ------------ ----------- ----------- --------- Net Assets: Beginning of Period..................................... 2,591,527 2,368,849 2,985,750 -- ------------ ----------- ----------- --------- End of Period........................................... $ 2,975,521 $ 2,591,527 $ 2,368,849 $ 125,982 ============ =========== =========== ========= Undistributed Net Investment Income, End of Period.......... $ 1 $ -- $ 79 $ -- ============ =========== =========== ========= Shares Transactions: Institutional Shares Issued.................................................. 10,474,192 7,385,743 266 449,804 Reinvested.............................................. 57,184 17,767 57 -- Redeemed................................................ (10,147,220) (7,180,727) (937) (323,822) ------------ ----------- ----------- --------- Change in Institutional Share Transactions.................. 384,156 222,783 (614) 125,982 ------------ ----------- ----------- --------- Change in Share Transactions................................ 384,156 222,783 (614) 125,982 ============ =========== =========== =========
* Commencement of operations. Amounts designated as "--" are either $0 or have been rounded to $0. See Notes to Financial Statements. 24 STATEMENTS OF CHANGES IN NET ASSETS STI CLASSIC FUNDS For the Periods Indicated (Amounts in thousands)
Classic Institutional Classic Institutional U.S. Government Securities U.S. Treasury Securities Money Market Fund Money Market Fund --------------------------------------- -------------------------------------- 04/01/05- 06/01/04- 06/01/03- 04/01/05- 06/01/04- 06/01/03- 03/31/06 03/31/05 05/31/04 03/31/06 03/31/05 05/31/04 ----------- ----------- ----------- ----------- ----------- ---------- Operations: Net Investment Income........................ $ 31,805 $ 12,158 $ 8,014 $ 88,517 $ 25,166 $ 11,209 Net Realized Gain (Loss) on Investments Sold....................................... -- -- 3 (37) (241) 1,300 ----------- ----------- ----------- ----------- ----------- ---------- Change in Net Assets from Operations......... 31,805 12,158 8,017 88,480 24,925 12,509 ----------- ----------- ----------- ----------- ----------- ---------- Dividends and Distributions to Shareholders: Net Investment Income: Institutional Shares....................... (31,805) (12,161) (8,014) (26,758) (7,533) (3,696) Corporate Trust Shares..................... -- -- -- (61,759) (18,295) (7,522) Net Realized Gains: Institutional Shares....................... -- -- -- -- -- (280) Corporate Trust Shares..................... -- -- -- -- -- (903) ----------- ----------- ----------- ----------- ----------- ---------- Total Dividends and Distributions............ (31,805) (12,161) (8,014) (88,517) (25,828) (12,401) ----------- ----------- ----------- ----------- ----------- ---------- Capital Transactions: Institutional Shares Proceeds from Shares Issued................ 3,737,790 2,467,346 2,512,598 5,829,775 2,489,770 3,003,944 Reinvestment of Cash Distributions......... 12,924 4,387 2,820 10,384 3,113 2,922 Cost of Shares Redeemed.................... (3,693,592) (2,435,337) (2,697,227) (5,635,467) (2,216,507) (3,239,309) ----------- ----------- ----------- ----------- ----------- ---------- Change in Net Assets From Institutional Shares..................................... 57,122 36,396 (181,809) 204,692 276,376 (232,443) ----------- ----------- ----------- ----------- ----------- ---------- Corporate Trust Shares Proceeds from Shares Issued................ 4,198,189 3,119,275 3,290,925 Cost of Shares Redeemed.................... (3,955,073) (2,671,779) (3,211,341) ----------- ----------- ---------- Change in Net Assets From Corporate Trust Shares..................................... 243,116 447,496 79,584 ----------- ----------- ---------- Change in Net Assets from Capital Transactions............................... 57,122 36,396 (181,809) 447,808 723,872 (152,859) ----------- ----------- ----------- ----------- ----------- ---------- Change in Net Assets........................... 57,122 36,393 (181,806) 447,771 722,969 (152,751) ----------- ----------- ----------- ----------- ----------- ---------- Net Assets: Beginning of Period........................ 894,653 858,260 1,040,066 2,522,468 1,799,499 1,952,250 ----------- ----------- ----------- ----------- ----------- ---------- End of Period.............................. $ 951,775 $ 894,653 $ 858,260 $ 2,970,239 $ 2,522,468 $1,799,499 =========== =========== =========== =========== =========== ========== Undistributed Net Investment Income, End of Period....................................... $ -- $ -- $ 3 $ 75 $ 75 $ (5) =========== =========== =========== =========== =========== ========== Shares Transactions: Institutional Shares Issued..................................... 3,737,790 2,467,346 258 5,829,775 2,489,770 3,003,944 Reinvested................................. 12,924 4,387 80 10,384 3,113 2,922 Redeemed................................... (3,693,592) (2,435,337) (608) (5,635,467) (2,216,507) (3,239,309) ----------- ----------- ----------- ----------- ----------- ---------- Change in Institutional Share Transactions..... 57,122 36,396 (270) 204,692 276,376 (232,443) ----------- ----------- ----------- ----------- ----------- ---------- Corporate Trust Shares Issued..................................... 4,198,189 3,119,275 3,290,925 Redeemed................................... (3,955,073) (2,671,779) (3,211,341) ----------- ----------- ---------- Change in Corporate Trust Share Transactions... 243,116 447,496 79,584 ----------- ----------- ---------- Change in Share Transactions................... 57,122 36,396 (270) 447,808 723,872 (152,859) =========== =========== =========== =========== =========== ==========
* Commencement of operations. Amounts designated as "--" are either $0 or have been rounded to $0. See Notes to Financial Statements. 25 FINANCIAL HIGHLIGHTS STI CLASSIC FUNDS Selected Data For a Share of Beneficial Interest Outstanding Throughout the Periods Indicated.
Net Realized Distributions Net Asset and Dividends from Value, Net Unrealized from Net Realized Beginning Investment Gains on Total From Investment Capital of Period Income Investments Operations Income Gains --------- ---------- ----------- ---------- ---------- ------------- CLASSIC INSTITUTIONAL CASH MANAGEMENT MONEY MARKET FUND Institutional Shares Year Ended March 31, 2006 $1.00 $0.04 $ -- $0.04 $(0.04) $ -- Period Ended March 31, 2005** 1.00 0.01 -- 0.01 (0.01) -- Year Ended May 31, 2004 1.00 0.01 -- 0.01 (0.01) --* Year Ended May 31, 2003 1.00 0.01 -- 0.01 (0.01) -- Year Ended May 31, 2002 1.00 0.03 -- 0.03 (0.03) -- Year Ended May 31, 2001 1.00 0.06 -- 0.06 (0.06) -- CLASSIC INSTITUTIONAL MUNICIPAL CASH RESERVE MONEY MARKET FUND Institutional Shares Period Ended March 31, 2006(a) 1.00 0.02 -- 0.02 (0.02) -- CLASSIC INSTITUTIONAL U.S. GOVERNMENT SECURITIES MONEY MARKET FUND Institutional Shares Year Ended March 31, 2006 1.00 0.03 -- 0.03 (0.03) -- Period Ended March 31, 2005** 1.00 0.01 -- 0.01 (0.01) -- Year Ended May 31, 2004 1.00 0.01 -- 0.01 (0.01) -- Year Ended May 31, 2003 1.00 0.01 -- 0.01 (0.01) -- Year Ended May 31, 2002 1.00 0.03 -- 0.03 (0.03) -- Year Ended May 31, 2001 1.00 0.06 -- 0.06 (0.06) -- CLASSIC INSTITUTIONAL U.S. TREASURY SECURITIES MONEY MARKET FUND Institutional Shares Year Ended March 31, 2006 1.00 0.03 -- 0.03 (0.03) -- Period Ended March 31, 2005** 1.00 0.01 -- 0.01 (0.01) -- Year Ended May 31, 2004 1.00 0.01 -- 0.01 (0.01) --* Year Ended May 31, 2003 1.00 0.01 -- 0.01 (0.01) --* Year Ended May 31, 2002 1.00 0.02 -- 0.02 (0.02) -- Year Ended May 31, 2001 1.00 0.06 -- 0.06 (0.06) -- Corporate Trust Shares Year Ended March 31, 2006 1.00 0.03 -- 0.03 (0.03) -- Period Ended March 31, 2005** 1.00 0.01 -- 0.01 (0.01) -- Year Ended May 31, 2004 1.00 0.01 -- 0.01 (0.01) --* Year Ended May 31, 2003 1.00 0.01 -- 0.01 (0.01) --* Year Ended May 31, 2002 1.00 0.02 -- 0.02 (0.02) -- Year Ended May 31, 2001 1.00 0.05 -- 0.05 (0.05) -- Ratio of Ratio of Net Net Net Expenses Investment Total Asset to Income to Dividends Value, Net Assets, Average Average and End of Total End of Net Net Distributions Period Return+ Period (000) Assets++ Assets++ ------------- ------ ------- ------------ -------- ---------- CLASSIC INSTITUTIONAL CASH MANAGEMENT MONEY MARKET FUND Institutional Shares Year Ended March 31, 2006 $(0.04) $1.00 3.62% $2,975,521 0.17% 3.60% Period Ended March 31, 2005** (0.01) 1.00 1.43 2,591,527 0.19 1.71 Year Ended May 31, 2004 (0.01) 1.00 0.86 2,368,849 0.25 0.86 Year Ended May 31, 2003 (0.01) 1.00 1.46 2,985,750 0.25 1.45 Year Ended May 31, 2002 (0.03) 1.00 2.68 3,409,606 0.25 2.61 Year Ended May 31, 2001 (0.06) 1.00 6.13 3,229,400 0.25 5.91 CLASSIC INSTITUTIONAL MUNICIPAL CASH RESERVE MONEY MARKET FUND Institutional Shares Period Ended March 31, 2006(a) (0.02) 1.00 1.79 125,982 0.19 2.78 CLASSIC INSTITUTIONAL U.S. GOVERNMENT SECURITIES MONEY MARKET FUND Institutional Shares Year Ended March 31, 2006 (0.03) 1.00 3.51 951,775 0.21 3.48 Period Ended March 31, 2005** (0.01) 1.00 1.36 894,653 0.25 1.63 Year Ended May 31, 2004 (0.01) 1.00 0.82 858,260 0.27 0.82 Year Ended May 31, 2003 (0.01) 1.00 1.40 1,040,066 0.26 1.39 Year Ended May 31, 2002 (0.03) 1.00 2.61 1,025,714 0.27 2.49 Year Ended May 31, 2001 (0.06) 1.00 5.98 896,189 0.26 5.72 CLASSIC INSTITUTIONAL U.S. TREASURY SECURITIES MONEY MARKET FUND Institutional Shares Year Ended March 31, 2006 (0.03) 1.00 3.41 901,777 0.20 3.45 Period Ended March 31, 2005** (0.01) 1.00 1.31 697,095 0.25 1.62 Year Ended May 31, 2004 (0.01) 1.00 0.77 420,948 0.26 0.71 Year Ended May 31, 2003 (0.01) 1.00 1.30 653,340 0.26 1.23 Year Ended May 31, 2002 (0.02) 1.00 2.28 551,599 0.26 2.25 Year Ended May 31, 2001 (0.06) 1.00 5.74 580,227 0.27 5.44 Corporate Trust Shares Year Ended March 31, 2006 (0.03) 1.00 3.17 2,068,462 0.44 3.14 Period Ended March 31, 2005** (0.01) 1.00 1.14 1,825,373 0.44 1.38 Year Ended May 31, 2004 (0.01) 1.00 0.57 1,378,551 0.46 0.51 Year Ended May 31, 2003 (0.01) 1.00 1.10 1,298,910 0.46 1.05 Year Ended May 31, 2002 (0.02) 1.00 2.08 1,805,066 0.46 2.11 Year Ended May 31, 2001 (0.05) 1.00 5.53 1,303,630 0.46 5.38 Ratio of Expenses to Average Net Assets (Excluding Waivers, Reimbursements and Expense Offset)++ ------------------- CLASSIC INSTITUTIONAL CASH MANAGEMENT MONEY MARKET FUND Institutional Shares Year Ended March 31, 2006 0.19% Period Ended March 31, 2005** 0.26 Year Ended May 31, 2004 0.29 Year Ended May 31, 2003 0.29 Year Ended May 31, 2002 0.29 Year Ended May 31, 2001 0.30 CLASSIC INSTITUTIONAL MUNICIPAL CASH RESERVE MONEY MARKET FUND Institutional Shares Period Ended March 31, 2006(a) 0.23 CLASSIC INSTITUTIONAL U.S. GOVERNMENT SECURITIES MONEY MARKET FUND Institutional Shares Year Ended March 31, 2006 0.21 Period Ended March 31, 2005** 0.26 Year Ended May 31, 2004 0.29 Year Ended May 31, 2003 0.29 Year Ended May 31, 2002 0.30 Year Ended May 31, 2001 0.29 CLASSIC INSTITUTIONAL U.S. TREASURY SECURITIES MONEY MARKET FUND Institutional Shares Year Ended March 31, 2006 0.20 Period Ended March 31, 2005** 0.26 Year Ended May 31, 2004 0.29 Year Ended May 31, 2003 0.29 Year Ended May 31, 2002 0.30 Year Ended May 31, 2001 0.30 Corporate Trust Shares Year Ended March 31, 2006 0.44 Period Ended March 31, 2005** 0.45 Year Ended May 31, 2004 0.49 Year Ended May 31, 2003 0.49 Year Ended May 31, 2002 0.50 Year Ended May 31, 2001 0.50
See Notes to Financial Highlights and Notes to Financial Statements. 26 NOTES TO FINANCIAL HIGHLIGHTS * Amount less than $0.005. ** Effective June 1, 2004, these Funds adopted a change in the amortization and accretion methodology on fixed income securities. The cumulative effect of this change in methodology was immaterial to all Funds. + Not annualized for periods less than one year. ++ Annualized for periods less than one year. (a) Commenced operations on August 2, 2005. 27 NOTES TO FINANCIAL STATEMENTS STI CLASSIC FUNDS March 31, 2006 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 offering 53 funds as of March 31, 2006. The Trust is authorized to issue an unlimited number of shares without par value. The financial statements presented herein are those of the Classic Institutional Cash Management Money Market Fund, the Classic Institutional Municipal Cash Reserve Money Market Fund, the Classic Institutional U.S. Government Securities Money Market Fund and the Classic Institutional U.S. Treasury Securities Money Market Fund (each a "Fund" and collectively the "Funds"). The financial statements of the remaining funds are presented separately. The Classic Institutional Cash Management Money Market Fund, Classic Institutional Municipal Cash Reserve Money Market Fund and Classic Institutional U.S. Government Securities Money Market Fund may offer Institutional Shares only. The Classic Institutional U.S. Treasury Securities Money Market Fund may offer Institutional Shares and Corporate Trust Shares. The Funds' prospectus provides a description of the Funds' investment objectives, policies and strategies. The assets of each Fund are segregated, and a shareholder's interest is limited to the Fund in which shares are held. Each class of shares has identical rights and privileges except with respect to the fees paid under the Shareholder Services Plan and voting rights on matters affecting a single class of shares. Under the Trust's organizational documents, its officers and trustees are indemnified against certain liabilities arising out of the performance of their duties to the Trust. In addition, in the normal course of business, the Trust enters into contracts with its vendors and others that provide for general indemnifications. The Trust's maximum exposure under these arrangements is unknown as this would involve future claims that may be made against the Trust. However, based on experience, the Trust expects that risk of loss to be remote. 2. Significant Accounting Policies The following is a summary of significant accounting policies followed by the Trust in the preparation of its financial statements. These policies are in conformity with accounting principles generally accepted in the United States of America ("GAAP"). The preparation of financial statements in accordance with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of income and expense during the reporting period. The actual results could differ from these estimates. Security Valuation -- Investment securities are stated at amortized cost, which approximates market value. Under the amortized cost method, premium or discount, if any, is amortized or accreted, respectively, on a constant basis to the maturity of the security. Securities listed on a securities exchange, market or automated quotation system for which quotations are readily available (except for securities traded on NASDAQ), including securities traded over the counter, are valued at the last quoted sale price on the primary exchange or market (foreign or domestic) on which they are traded on valuation date (or at approximately 4:00 pm Eastern Time if a security's primary exchange is normally open at that time), or, if there is no such reported sale on the valuation date, at the most recent quoted bid price. For securities traded on NASDAQ, the NASDAQ Official Closing Price will be used. Security Transactions and Investment Income -- Security transactions are accounted for no later than one business day after trade date. However, for financial reporting purposes, security transactions are reported on trade date. Interest income is recognized on an accrual basis and includes amortization or accretion of premiums or discounts. 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 or amortization of purchase discounts or premiums during the respective holding period. Repurchase Agreements -- The Funds may purchase instruments from financial institutions, such as banks and broker-dealers, subject to the seller's agreement to repurchase them at an agreed upon time and price 28 NOTES TO FINANCIAL STATEMENTS (continued) STI CLASSIC FUNDS March 31, 2006 ("repurchase agreement"). A third party custodian bank takes possession of the underlying securities ("collateral") of a repurchase agreement, the value of which exceeds the principal amount of the repurchase transaction, including accrued interest. In the event of default on the obligation to repurchase, each Fund has the right to liquidate the collateral and apply the proceeds in satisfaction of the obligation. In the event of default or bankruptcy by the counterparty to the repurchase agreement, realization and/or retention of the collateral or proceeds may be subject to legal proceedings. Securities Purchased on a When-Issued Basis -- Delivery and payment for securities that have been purchased by a Fund on a forward commitment or when-issued basis can take place up to a month or more after the transaction date. During this period, such securities are subject to market fluctuations. The purchase of securities on a when-issued basis may increase the volatility of a Fund's net asset value if the Fund makes such investments while remaining substantially fully invested. A Fund records when-issued securities on trade date and maintains security positions such that sufficient liquid assets will be available to make payment for the securities purchased. Compensating Balances -- If a Fund has a cash overdraft in excess of $100,000 it is required to deposit an amount equal to 110% of the overdraft in a compensating balance account with its custodian, SunTrust Bank, a wholly owned subsidiary of SunTrust Banks, Inc., on the following business day. If a Fund has a positive cash balance in excess of $100,000 it is allowed to overdraw an amount equal to 90% of the balance from SunTrust Bank on the following business day. All such deposits to, and overdrafts from, the compensating balance account are non-interest bearing and are for a duration of one business day. Expenses -- Expenses that are directly related to a specific Fund are charged to that Fund. Class specific expenses, such as distribution fees, if any, are borne by that class. Other operating expenses of the Trust are pro-rated to the Funds on the basis of relative net assets or another appropriate basis. Classes -- Income, non-class specific expenses and realized/unrealized gains and losses are allocated to the respective classes within a Fund on the basis of the relative daily net assets. Dividends and Distributions to Shareholders -- Dividends and distributions to shareholders are recorded on the ex-dividend date. Dividends from net investment income of each of the Funds are declared daily and paid monthly. Any net realized capital gains on sales of securities are distributed to shareholders at least annually. However, to the extent that net realized capital gains can be offset by capital loss carryovers, such gains will not be distributed. 3. Agreements and Other Transactions with Affiliates Investment Advisory Agreement -- The Trust and Trusco Capital Management, Inc. (the "Investment Adviser"), a wholly owned subsidiary of SunTrust Banks, Inc., have entered into advisory agreements. Under revised terms of the agreements dated August 1, 2005, the Funds are charged the following annual fees, which are computed daily and paid monthly based upon average daily net assets. Breakpoints are used in computing the advisory fee. The maximum annual advisory fee is charged on average daily net assets of each Fund up to $1 billion, a discount of 5% applies on the next $1.5 billion, a discount of 10% applies on the next $2.5 billion and a discount of 20% applies on amounts over $5 billion. Fee rates paid for the period August 1, 2005 through March 31, 2006 were as follows:
Maximum Annual Net Annual Advisory Fee Fees Paid (%) (%) -------------- ---------- Classic Institutional Cash Management Money Market Fund..... 0.13 0.12 Classic Institutional Municipal Cash Reserve Money Market Fund...................................................... 0.15 0.14 Classic Institutional U.S. Government Securities Money Market Fund............................................... 0.15 0.15 Classic Institutional U.S. Treasury Securities Money Market Fund...................................................... 0.15 0.14
29 NOTES TO FINANCIAL STATEMENTS (continued) STI CLASSIC FUNDS March 31, 2006 Prior to August 1, 2005, the Funds that were in operation during that period paid the following annual fees which were computed daily and paid monthly based upon average daily net assets. Fee rates for the period April 1, 2005 through July 31, 2005 were as follows:
Maximum Annual Net Annual Advisory Fee Fees Paid (%) (%) -------------- ---------- Classic Institutional Cash Management Money Market Fund..... 0.20 0.13 Classic Institutional U.S. Government Securities Money Market Fund............................................... 0.20 0.20 Classic Institutional U.S. Treasury Securities Money Market Fund...................................................... 0.20 0.20
The Investment Adviser has contractually agreed, effective August 1, 2005 until at least August 1, 2007, to waive fees and/or reimburse each Fund to the extent necessary to maintain each Fund's Total Operating Expenses, expressed as a percentage of average daily net assets, as noted below:
Total Operating Expense (%) --------------- Classic Institutional Cash Management Money Market Fund..... 0.17 Classic Institutional Municipal Cash Reserve Money Market Fund...................................................... 0.20 Classic Institutional U.S. Government Securities Money Market Fund............................................... 0.20 Classic Institutional U.S. Treasury Securities Money Market Fund, Institutional Shares................................ 0.20 Classic Institutional U.S. Treasury Securities Money Market Fund, Corporate Trust Shares.............................. 0.45
Also effective August 1, 2005, the Investment Adviser may retain the difference between the Total Operating Expense and the actual total expense ratio, to recapture any of its prior waivers or reimbursements, until August 1, 2008. Such repayments shall be made monthly, but only to the extent that such repayments would not cause the annualized total expense ratio to exceed the Total Operating Expense in place at that time. As of March 31, 2006, the Classic Institutional Municipal Cash Reserve Money Market Fund had $7,286 available for repayment that may potentially be made to the Investment Adviser. During the period April 1, 2005 through July 31, 2005, the Investment Adviser also voluntarily waived fees in the Funds in order to maintain a more competitive expense ratio for shareholders. These voluntary waivers will not be recouped by the Investment Adviser in subsequent years. Administration, Fund Accounting and Transfer Agency Agreement -- The Trust and STI Classic Variable Trust are parties to a Master Services Agreement with BISYS Fund Services Ohio, Inc. (the "Administrator"), under which the Administrator provides administrative, fund accounting, transfer agent and shareholder 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: 0.0275% up to $25 billion, 0.0225% on the next $5 billion and 0.0175% on amounts over $30 billion plus an additional class fee of $2,593 per class annually, applicable to each additional class of shares over 145 total classes of shares. The Master Services Agreement provides for the Administrator to pay certain insurance premiums for the Trust and STI Classic Variable Trust, including $300,000 toward the premium for Directors and Officers Liability/Errors and Omissions insurance coverage, and $25,000 toward the premium for Fidelity Bond coverage. The Administrator has agreed, under the terms of the Master Services Agreement, to pay certain legal expenses for the benefit of the Trust and the Classic Variable Trust relating to administrative service matters. The Master Services Agreement further provides for the Administrator to waive a portion of its fees for the benefit of shareholders. Such payments and fee waivers are expected to total approximately $400,000 to $650,000 annually, and will not be recovered by the Administrator in subsequent years. 30 NOTES TO FINANCIAL STATEMENTS (continued) STI CLASSIC FUNDS March 31, 2006 Distribution Agreement -- The Trust and BISYS Fund Services Limited Partnership (the "Distributor") are parties to a Distribution Services Agreement. The Distributor will receive no fees for its distribution services under this agreement for the Institutional and Corporate Trust Shares of any Fund. Shareholder Servicing Agreement -- The Classic Institutional U.S. Treasury Securities Money Market Fund has adopted a Shareholder Services Plan for the Corporate Trust Shares. The Fund pays SunTrust Bank a monthly shareholder services fee at an annual rate of up to 0.25% of the average daily net assets of the Fund's Corporate Trust Shares, computed daily and paid monthly, which may be used by SunTrust Bank to provide compensation to service providers that have agreed to provide shareholder support services for their customers who own Corporate Trust Shares of the Fund. The Fund paid SunTrust Bank at an annual rate of 0.20% from April 1, 2005 to July 31, 2005, and 0.25% from August 1, 2005 to March 31, 2006. Custodian Agreement -- SunTrust Bank acts as Custodian for the Funds. The Funds pay custody fees on the basis of net assets and transaction costs. Other -- Certain officers of the Trust are also officers of the Investment Adviser, the Administrator and/or the Distributor. Such officers receive no fees from the Trust for serving as officers of the Trust. Each of the trustees receives an annual retainer fee and an additional fee for each meeting attended. Trustees receive additional fee for attendance at committee meetings. The current fees are as follows:
Chairman($) Trustee($) ----------- ---------- Annual Retainer............................................. 50,000 40,000 Regular Meeting Fee......................................... 7,500 6,000 Special Meeting Fee......................................... 3,750 3,000 Committee Meeting Fee....................................... 4,500 2,500
The Investment Adviser provides services to the Trust and the STI Classic Variable Trust to ensure compliance with applicable laws and regulations. In addition, the Investment Adviser has designated a dedicated compliance staff and an employee to serve as Chief Compliance Officer. The Investment Adviser received a fee totaling $120,000 for these services during the year ended March 31, 2006. The Investment Adviser has expanded the scope of its compliance services to the Trust and the STI Classic Variable Trust and, effective April 1, 2006, will receive annual fees totaling $475,000 for the fiscal year ending March 31, 2007. In addition, the Administrator provides an employee and staff to assist the Chief Compliance Officer for the Trust, including providing certain related services, and receives an annual fee of $150,000 for providing these services. The fees above are allocated across the assets of the Trust and the STI Classic Variable Trust. For the year ended March 31, 2006, the total amount paid by the Trust related to trustees and compliance services was $961,554. The Trust has entered into an agreement with SunTrust Robinson Humphrey, a division of SunTrust Capital Markets, Inc., which is a direct non-bank subsidiary of SunTrust Banks, Inc., to act as an agent in placing repurchase agreements for the Trust. For the year ended March 31, 2006, the following Funds paid SunTrust Robinson Humphrey, through a reduction in the yield earned by the Funds on those repurchase agreements, the following amounts (in thousands):
Fees($) ------- Classic Institutional Cash Management Money Market Fund..... 166 Classic Institutional U.S. Government Securities Money Market Fund............................................... 174 Classic Institutional U.S. Treasury Securities Money Market Fund...................................................... 1,111
4. Federal Tax Policies and Information It is the policy of each Fund to continue to qualify as a regulated investment company by complying with the provisions available to certain investment companies as defined in applicable sections of the Internal Revenue Code, and to make distributions from net investment income and from net realized gains sufficient to relieve it from all, or substantially all, federal income taxes. The amounts of dividends from net investment income and of distributions from net realized gains are determined in accordance with federal income tax regulations, which may differ from GAAP. These 31 NOTES TO FINANCIAL STATEMENTS (continued) STI CLASSIC FUNDS March 31, 2006 "book/tax" differences are either considered temporary or permanent in nature. To the extent these differences are permanent in nature, such amounts are reclassified within the composition of net assets based on their federal tax-basis treatment; temporary differences do not require reclassification. At March 31, 2006, the total cost of securities and the net realized gains or losses on securities sold for Federal income tax purposes were different from amounts reported for financial reporting purposes in the Classic Institutional U.S. Treasury Securities Money Market Fund. These differences were generally due to losses on wash sales, which cannot be used for Federal income tax purposes in the current year and have been deferred for use in future years. The tax character of distributions paid to shareholders during the year ended March 31, 2006 was as follows (in thousands):
Distributions paid from --------------------------------- Total Net Investment Tax Exempt Distributions Fund Income($) Income($) Paid($)* - ---- -------------- ---------------- ------------- Classic Institutional Cash Management Money Market Fund..... 101,462 -- 101,462 Classic Institutional Municipal Cash Reserve Money Market Fund...................................................... 18 1,131 1,149 Classic Institutional U.S. Government Securities Money Market Fund............................................... 30,411 -- 30,411 Classic Institutional U.S. Treasury Securities Money Market Fund...................................................... 82,740 -- 82,740
- --------------- * Total distributions paid differ from the Statement of Changes in Net Assets because for tax purposes dividends are recognized when actually paid. Amounts designated as "--" are either $0 or have been rounded to $0. The tax character of distributions paid to shareholders during the period ended March 31, 2005 was as follows (in thousands):
Distributions paid from --------------------------------- Total Net Investment Net Long Term Distributions Fund Income($) Capital Gains($) Paid($)* - ---- -------------- ---------------- ------------- Classic Institutional Cash Management Money Market Fund..... 33,687 -- 33,687 Classic Institutional U.S. Government Securities Money Market Fund............................................... 11,006 -- 11,006 Classic Institutional U.S. Treasury Securities Money Market Fund...................................................... 22,216 -- 22,216
- --------------- * Total distributions paid differ from the Statement of Changes in Net Assets because for tax purposes dividends are recognized when actually paid. Amounts designated as "--" are either $0 or have been rounded to $0. The tax character of distributions paid to shareholders during the year ended May 31, 2004 was as follows (in thousands):
Distributions paid from --------------------------------- Total Net Investment Net Long Term Distributions Fund Income($) Capital Gains($) Paid($)* - ---- -------------- ---------------- ------------- Classic Institutional Cash Management Money Market Fund..... 23,696 -- 23,696 Classic Institutional U.S. Government Securities Money Market Fund............................................... 8,014 -- 8,014 Classic Institutional U.S. Treasury Securities Money Market Fund...................................................... 12,365 36 12,401
- --------------- * Total distributions paid differ from the Statement of Changes in Net Assets because for tax purposes dividends are recognized when actually paid. Amounts designated as "--" are either $0 or have been rounded to $0. As of March 31, 2006 the components of accumulated earnings (deficit) on a tax basis were as follows (in thousands):
Undistributed Undistributed Undistributed Accumulated Tax-Exempt Ordinary Long Term Accumulated Distributions Capital and Income($) Income($) Capital Gains($) Earnings($) Payable($) Other Losses($)** ------------- ------------- ---------------- ----------- ------------- ----------------- Classic Institutional Cash Management Money Market Fund............... -- 11,578 -- 11,578 (11,577) (189) Classic Institutional Municipal Cash Reserve Money Market Fund........ 365 1 -- 366 (366) -- Total Unrealized Accumulated Appreciation Earnings (Depreciation)($)*** (Deficit)($) -------------------- ------------ Classic Institutional Cash Management Money Market Fund............... -- (188) Classic Institutional Municipal Cash Reserve Money Market Fund........ -- --
32 NOTES TO FINANCIAL STATEMENTS (concluded) STI CLASSIC FUNDS March 31, 2006
Undistributed Undistributed Undistributed Accumulated Tax-Exempt Ordinary Long Term Accumulated Distributions Capital and Income($) Income($) Capital Gains($) Earnings($) Payable($) Other Losses($)** ------------- ------------- ---------------- ----------- ------------- ----------------- Classic Institutional U.S. Government Securities Money Market Fund........ -- 3,165 -- 3,165 (3,165) -- Classic Institutional U.S. Treasury Securities Money Market Fund........ -- 10,272 -- 10,272 (10,197) (273) Total Unrealized Accumulated Appreciation Earnings (Depreciation)($)*** (Deficit)($) -------------------- ------------ Classic Institutional U.S. Government Securities Money Market Fund........ -- -- Classic Institutional U.S. Treasury Securities Money Market Fund........ (5) (203)
- --------------- ** As of the latest tax year end of March 31, 2006, the following Funds had net capital loss carryovers to offset future net capital gains, if any, to the extent provided by the Treasury regulations. To the extent that these carryovers are used to offset future gains, it is probable that the gains so offset will not be distributed to shareholders (in thousands):
Expires ----------------- 2013($) 2014($) ------- ------- Classic Institutional Cash Management Money Market Fund..... -- 26 Classic Institutional U.S. Treasury Securities Money Market Fund...................................................... 156 110
Net Capital losses incurred after October 31, and within the taxable year are deemed to arise on the first business day of the Funds' next taxable year. The Classic Institutional Cash Management Money Market Fund and the Classic Institutional U.S. Treasury Securities Money Market Fund have incurred and will elect to defer $163 and $7, respectively, in thousands, in capital losses. *** The differences between book-basis and tax-basis unrealized appreciation (depreciation) is attributable primarily to: tax deferral of losses on wash sales, the difference between book and tax amortization methods for premium and market discount. 5. Risks The Funds invest primarily in money market instruments maturing in 397 days or less whose ratings are within one of the two highest ratings categories assigned by a nationally recognized statistical rating organization, or, if not rated, are believed to be of comparable quality. The ability of the issuers of the securities held by the Fund to meet their obligations may be affected by economic developments in a specific industry, state or region. Certain securities are backed by letters of credit from various financial institutions and financial guaranty assurance agencies. These letters of credit enhance the credit quality of the individual securities; however, if any of the financial institutions or financial guaranty assurance agencies' credit quality should deteriorate, it could cause the individual security's credit quality to change. Additionally, if any of the Funds concentrate their letters of credit in any one financial institution, the risk of credit quality deterioration increases. The Funds hold certain securities the issuer of which operates under a congressional charter. These securities (Federal Home Loan Mortgage Corporation, Federal Home Loan Bank and Federal National Mortgage Association) are neither issued nor guaranteed by the U.S. Government. If needed, access to additional funding from the U.S. Treasury (beyond the issuer's line of credit), would require congressional action. 6. Other Federal Tax Information (Unaudited) For corporate shareholders, no portion of the total ordinary income distributions paid by the Funds during the year ended March 31, 2006 qualified for the corporate dividends received deduction. Therefore, none of the Funds paid qualified dividend income for the year ended March 31, 2006. 33 REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM To the Board of Trustees and Shareholders of STI Classic Funds: In our opinion, the accompanying statements of assets and liabilities, including the schedules of portfolio investments, and the related statements of operations and of changes in net assets and the financial highlights present fairly, in all material respects, the financial position of Classic Institutional Cash Management Money Market Fund, Classic Institutional Municipal Cash Reserve Money Market Fund, Classic Institutional U.S. Government Securities Money Market Fund, and Classic Institutional U.S. Treasury Securities Money Market Fund (four of the fifty-three funds constituting STI Classic Funds, hereafter referred to as the "Funds") at March 31, 2006, the results of each of their operations, changes in each of their net assets and the financial highlights for each of the periods indicated except as discussed below where funds were audited by other independent accountants, in conformity with accounting principles generally accepted in the United States of America. These financial statements and financial highlights (hereafter referred to as "financial statements") are the responsibility of the Funds' management; our responsibility is to express an opinion on these financial statements based on our audits. We conducted our audits of these financial statements in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting principles used and significant estimates made by management, and evaluating the overall financial statement presentation. We believe that our audits, which included confirmation of securities at March 31, 2006 by correspondence with the custodian and brokers, provide a reasonable basis for our opinion. The financial highlights for the year ended May 31, 2001 of the Funds were audited by other independent accountants who have ceased operations. Those independent accountants expressed an unqualified opinion on those financial statements in their report dated July 18, 2001. PricewaterhouseCoopers LLP Philadelphia, Pennsylvania May 25, 2006 34 TRUSTEES AND OFFICERS OF THE STI CLASSIC FUNDS (UNAUDITED) Information pertaining to the trustees and officers of the Trust is set forth below. Trustees who are not deemed to be "interested persons" of the Trust as defined in the 1940 Act are referred to as "Independent Trustees." Trustees who are deemed to be "interested persons" of the Trust are referred to as "Interested Trustees." Messrs. Courts and Ridley are trustees who may be deemed to be "interested persons" of the Trust. - --------------------------------------------------------------------------------
NUMBER OF PORTFOLIOS IN THE TERM OF STI FUND POSITION(S) OFFICE AND PRINCIPAL COMPLEX NAME, ADDRESS, HELD WITH LENGTH OF OCCUPATION(S) OVERSEEN DATE OF BIRTH THE GROUP TIME SERVED DURING THE PAST 5 YEARS BY TRUSTEE - ------------------------------------------------------------------------------------------------------ INTERESTED TRUSTEES:* Richard W. Courts, II Trustee Indefinite; Chairman, Atlantic Investment 60 3435 Stelzer Road since November Company Columbus, OH 43219 2001 DOB 01/18/36 - ------------------------------------------------------------------------------------------------------ Clarence H. Ridley Trustee Indefinite; Chairman, Haverty Furniture 60 3435 Stelzer Road since November Companies; Partner, King and Columbus, OH 43219 2001 Spaulding LLP (law firm) (1977 to DOB 06/03/42 2000) - ------------------------------------------------------------------------------------------------------ INDEPENDENT TRUSTEES: Thomas Gallagher Trustee Indefinite; President, CEO, Genuine Parts 60 3435 Stelzer Road since May 2000 Company Columbus, OH 43219 DOB 11/25/47 - ------------------------------------------------------------------------------------------------------ F. Wendell Gooch Trustee Indefinite; Retired 60 3435 Stelzer Road since May 1992 Columbus, OH 43219 DOB 12/03/32 - ------------------------------------------------------------------------------------------------------ Sidney E. Harris Trustee Indefinite; Professor (since 2004) and Dean 60 3435 Stelzer Road since November (1997-2004), J. Mack Robinson Columbus, OH 43219 2004 College of Business, Georgia State DOB 07/21/49 University - ------------------------------------------------------------------------------------------------------ Warren Y. Jobe Trustee Indefinite; Retired. EVP, Georgia Power Company 60 3435 Stelzer Road since November and SVP, Southern Company Columbus, OH 43219 2004 (1998-2001) DOB 11/12/40 - ------------------------------------------------------------------------------------------------------ Connie D. McDaniel Trustee Indefinite; Vice President and Controller, The 60 3435 Stelzer Road since May 2005 Coca-Cola Company Columbus, OH 43219 DOB 04/10/58 - ------------------------------------------------------------------------------------------------------ James O. Robbins Trustee Indefinite; Retired. President, CEO, Cox 60 3435 Stelzer Road since May 2000 Communications, Inc. (1985-2005) Columbus, OH 43219 DOB 07/04/42 - ------------------------------------------------------------------------------------------------------ Charles D. Winslow Trustee Indefinite; Retired. Formerly Partner, 60 3435 Stelzer Road since November Accenture (consulting) Columbus, OH 43219 2004 DOB 07/13/35 - ------------------------------------------------------------------------------------------------------ OTHER NAME, ADDRESS, DIRECTORSHIPS DATE OF BIRTH HELD BY TRUSTEE - ------------------------------------------------------------------------------------------------------ INTERESTED TRUSTEES:* Richard W. Courts, II Genuine Parts Company; 3435 Stelzer Road Piedmont Medical Center; Columbus, OH 43219 SunTrust Bank DOB 01/18/36 - ------------------------------------------------------------------------------------------------------ Clarence H. Ridley Crawford & Co. 3435 Stelzer Road Columbus, OH 43219 DOB 06/03/42 - ------------------------------------------------------------------------------------------------------ INDEPENDENT TRUSTEES: Thomas Gallagher Genuine Parts Company; 3435 Stelzer Road Oxford Industries, Inc. Columbus, OH 43219 DOB 11/25/47 - ------------------------------------------------------------------------------------------------------ F. Wendell Gooch SEI Family of Funds 3435 Stelzer Road Columbus, OH 43219 DOB 12/03/32 - ------------------------------------------------------------------------------------------------------ Sidney E. Harris ServiceMaster Company; Total 3435 Stelzer Road System Services, Inc.; Columbus, OH 43219 Transamerica Investors, Inc. DOB 07/21/49 (13 Mutual Funds) - ------------------------------------------------------------------------------------------------------ Warren Y. Jobe WellPoint, Inc.; UniSource 3435 Stelzer Road Energy Corp.; HomeBanc Corp. Columbus, OH 43219 DOB 11/12/40 - ------------------------------------------------------------------------------------------------------ Connie D. McDaniel None 3435 Stelzer Road Columbus, OH 43219 DOB 04/10/58 - ------------------------------------------------------------------------------------------------------ James O. Robbins Cox Communications; Humana, 3435 Stelzer Road Inc. Columbus, OH 43219 DOB 07/04/42 - ------------------------------------------------------------------------------------------------------ Charles D. Winslow None 3435 Stelzer Road Columbus, OH 43219 DOB 07/13/35 - ------------------------------------------------------------------------------------------------------
* Mr. Courts may be deemed an Interested Trustee because of his directorships with affiliates of the Adviser. Mr. Ridley may be deemed an Interested Trustee because of a material business relationship with the parent of the Adviser. 35 TRUSTEES AND OFFICERS OF THE STI CLASSIC FUNDS (UNAUDITED)
TERM OF POSITION(S) OFFICE AND NAME, ADDRESS, HELD WITH LENGTH OF PRINCIPAL OCCUPATION(S) DATE OF BIRTH THE GROUP TIME SERVED DURING THE PAST 5 YEARS - -------------------------------------------------------------------------------------------------------------------------------- OFFICERS: R. Jeffrey Young President One-year; Senior Vice President, Relationship Management, BISYS 3435 Stelzer Road since July 2004 Fund Services (since 2002); Vice President, Client Columbus, OH 43219 Services, BISYS Fund Services (1997-2002) DOB 08/22/64 - -------------------------------------------------------------------------------------------------------------------------------- Deborah A. Lamb Executive Vice One-year; Chief Compliance Officer and Managing Director, Trusco 50 Hurt Plaza President, since September 2004; Capital Management, Inc. (since 2003); President, Atlanta, GA 30303 Assistant since November 2003; Investment Industry Consultants, LLC (2000-2003) DOB 10/02/52 Secretary; Chief since August 2004 Compliance Officer (respectively) - -------------------------------------------------------------------------------------------------------------------------------- Joel B. Engle Treasurer, Chief One-year; Director, Fund Administration, BISYS Fund Services 3435 Stelzer Road Financial Officer since May 2006* (since 2006); Self-employed, retail business owner Columbus, OH 43219 (2003-2006); DOB 10/31/65 Vice President, Financial Services, BISYS Fund Services (1998-2003) - -------------------------------------------------------------------------------------------------------------------------------- Cynthia J. Surprise Secretary and One-year; Senior Counsel, Legal Services, BISYS Fund Services 3435 Stelzer Road Chief Legal since February 2005 (since 2004); Director and Counsel, Investors Bank & Columbus, OH 43219 Officer Trust Company (1999-2004) DOB 07/08/46 - -------------------------------------------------------------------------------------------------------------------------------- Alaina V. Metz Assistant One-year; Vice President, Blue Sky Compliance, BISYS Fund Services 3435 Stelzer Road Secretary Since July 2004 (since 2002); Chief Administrative Officer, Blue Sky Columbus, OH 43219 Compliance, BISYS Fund Services (1995-2002) DOB 04/07/67 - -------------------------------------------------------------------------------------------------------------------------------- Jennifer English Assistant One-year; Assistant Counsel, Legal Services, BISYS Fund Services 3435 Stelzer Road Secretary Since November 2005 (since 2005); Assistant Counsel, PFPC, Inc. (2002-2005); Columbus, OH 43219 Associate Legal Product Manager, Fidelity Investments DOB 03/05/72 (2001); Regulatory Specialist, Wellington Management Company, LLP (1998-2001) - --------------------------------------------------------------------------------------------------------------------------------
* Elected at the Board of Trustees meeting May 9, 2006. The Trust's Statement of Additional Information includes additional information about the Trust's trustees and officers. To request your free copy of the Statement of Additional Information, call toll free 1-888-STI-FUND. 36 ADDITIONAL INFORMATION (UNAUDITED) EXPENSE EXAMPLES As a Fund shareholder, you incur two types of costs: (1) transaction costs; and (2) ongoing costs, including management fees, distribution fees, and other Fund expenses. These examples are intended to help you understand your ongoing costs (in dollars) of investing in a Fund and to compare these costs with the ongoing costs of investing in other mutual funds. These examples are based on an investment of $1,000 invested at the beginning of the period and held for the entire period from October 1, 2005 through March 31, 2006. Actual Expenses The table below provides information about actual account values and actual expenses. You may use the information below, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number in the table under the heading entitled "Expenses Paid During Period" to estimate the expenses you paid on your account during this period.
Beginning Ending Expense Paid Expense Ratio Account Value Account Value During Period* During Period** 10/01/05 3/31/06 10/01/05-3/31/06 10/01/05-3/31/06 ------------- ------------- ---------------- ---------------- Classic Institutional Cash Management Money Market Fund...... Institutional Shares $1,000.00 $1,020.49 $0.81 0.16% Classic Institutional Municipal Cash Reserve Money Market Fund......... Institutional Shares 1,000.00 1,014.06 0.95 0.19 Classic Institutional U.S. Government Securities Money Market Fund.............................. Institutional Shares 1,000.00 1,020.00 0.96 0.19 Classic Institutional U.S. Treasury Securities Money Market Fund...... Institutional Shares 1,000.00 1,019.53 0.96 0.19 Corporate Trust 1,000.00 1,018.26 2.16 0.43 Shares
- --------------- * Expenses are equal to the average account value times the Fund's annualized expense ratio multiplied by the number of days in the most recent fiscal half-year divided by the number of days in the fiscal year. ** Annualized. Hypothetical Example The table below provides information about hypothetical account values and hypothetical expenses based on a Fund's actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Fund's actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of other funds. Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transactional costs. Therefore, the table is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these transactional costs were included, your costs would have been higher.
Beginning Ending Expense Paid Expense Ratio Account Value Account Value During Period* During Period** 10/01/05 3/31/06 10/01/05-3/31/06 10/01/05-3/31/06 ------------- ------------- ---------------- ---------------- Classic Institutional Cash Management Money Market Fund...... Institutional Shares $1,000.00 $1,024.13 $0.81 0.16% Classic Institutional Municipal Cash Reserve Money Market Fund......... Institutional Shares 1,000.00 1,023.98 0.96 0.19
37 ADDITIONAL INFORMATION (UNAUDITED)
Beginning Ending Expense Paid Expense Ratio Account Value Account Value During Period* During Period** 10/01/05 3/31/06 10/01/05-3/31/06 10/01/05-3/31/06 ------------- ------------- ---------------- ---------------- Classic Institutional U.S. Government Securities Money Market Fund.............................. Institutional Shares $1,000.00 $1,023.98 $0.96 0.19% Classic Institutional U.S. Treasury Securities Money Market Fund...... Institutional Shares 1,000.00 1,023.98 0.96 0.19 Corporate Trust 1,000.00 1,022.79 2.17 0.43 Shares
- --------------- * Expenses are equal to the average account value times the Fund's annualized expense ratio multiplied by the number of days in the most recent fiscal half-year divided by the number of days in the fiscal year. ** Annualized. PROXY VOTING Information regarding the policies and procedures that the Funds use to determine how to vote proxies relating to portfolio securities is available without charge, upon request, by calling 1-888-STI-FUND. The information also is included in the Funds' Statement of Additional Information, which is available on the Funds' website at www.sticlassicfunds.com and on the Securities and Exchange Commission's website at www.sec.gov. Information relating to how each Fund voted proxies relating to portfolio securities held during the most recent twelve months ended June 30 is available on the Funds' website at www.sticlassicfunds.com and on the Securities and Exchange Commission's website at www.sec.gov. PORTFOLIO HOLDINGS INFORMATION The Funds file a complete list of their portfolio holdings with the Securities and Exchange Commission for the first and third quarters of each fiscal year on Form N-Q. Forms N-Q are available free of charge on the Securities and Exchange Commission's website at www.sec.gov. You may also review or, for a fee, copy those documents by visiting the Securities and Exchange Commission's Public Reference Room in Washington, D.C. Information on the operation of the Public Reference Room may be obtained by calling the Securities and Exchange Commission at 1-800-SEC-0330. 38 (This page intentionally left blank) INVESTMENT ADVISER: Trusco Capital Management, Inc. This information must be preceded or accompanied by a current prospectus for each Fund described. An investor should consider the Fund's investment objectives, risks, charges and expenses carefully before investing or sending money. This and other important information about STI Classic Funds can be found in the Fund's prospectus. For additional information, please call 1-888-STI-FUND, or visit www.sticlassicfunds.com. Please read the prospectus carefully before investing. DISTRIBUTOR: BISYS Fund Services Limited Partnership NOT FDIC INSURED - NO BANK GUARANTEE - MAY LOSE VALUE STI CLASSIC FUNDS STI-AIMM-0306 5/06 ITEM 2. CODE OF ETHICS. (a) The registrant has adopted a code of ethics that applies to the registrant's principal executive officer, principal financial officer, principal accounting officer or controller, or persons performing similar functions. This code of ethics is included as an Exhibit. (b) During the period covered by the report, with respect to the registrant's code of ethics that applies to its principal executive officer, principal financial officer, principal accounting officer or controller, or persons performing similar functions; there have been no amendments to, nor any waivers granted from, a provision that relates to any element of the code of ethics definition enumerated in paragraph (b) of this Item 2. ITEM 3. AUDIT COMMITTEE FINANCIAL EXPERT. 3(a)(1) The registrant's board of directors has determined that the registrant has at least one audit committee financial expert serving on its audit committee. 3(a)(2) The audit committee financial expert is Warren Y. Jobe, who is "independent" for purposes of this Item 3 of Form N-CSR. ITEM 4. PRINCIPAL ACCOUNTANT FEES AND SERVICES. Audit Fees: the aggregate fees billed for each of the last two fiscal years for professional services rendered by PricewaterhouseCoopers LLP for the audit of the Trust's annual financial statements or services that are normally provided by the accountant in connection with statutory and regulatory filings or engagements for those fiscal years were as follows:
CURRENT YEAR PREVIOUS YEAR ------------ ------------- (a) Audit Fees $775,780 $700,260 (b) Audit-Related Fees $109,170(1) $ 94,500(1) (c) Tax Fees $ 0 $ 0 (d) All Other Fees $ 0 $ 0
(1) Services related to security count examinations under Rule 17f-2 of the Investment Company Act. e(1) Except as permitted by Rule 2-01(c)(7)(i)(C) of Regulation S-X, the Trust's Audit Committee Charter provides that the principal responsibilities of the Committee shall include approving audit and non-audit services an independent accounting firm provides to the Trust (and certain Trust service providers) as required by and in accordance with applicable law. The Committee is authorized to develop policies and procedures, in accordance with applicable law, that provide for the advance pre-approval of some or all audit and non-audit services. The Committee is further authorized to delegate its responsibility to pre-approve audit and non-audit services to one or more members of the Committee, in accordance with applicable law. e(2) None of the services summarized in (b)-(d), above, were approved by the Audit Committee pursuant to Rule 2-01(c)(7)(i)(C) of Regulation S-X. (f) Not applicable. (g)
CURRENT YEAR PREVIOUS YEAR - ------------ ------------- $3,100,592(1) $3,505,864(1)
(1) Non-audit services relate principally to certain technical accounting advice on financial products of the Bank; Sarbanes-Oxley 404 implementation; review of certain registration statements and regulatory filings; issuance of comfort letters; and, tax compliance services to other entities controlled by SunTrust Banks, Inc. (h) In regards to Item 4 (g), The audit committee has considered that the provision of non-audit services that were rendered to the registrant's investment adviser (not including any sub-adviser whose role is primarily portfolio management and is subcontracted with or overseen by another investment adviser), and any entity controlling, controlled by, or under common control with the investment adviser that provides ongoing services to the registrant that were not pre-approved pursuant to paragraph (c)(7)(ii) of Rule 2-01 of Regulation S-X is compatible with maintaining the principal accountant's independence. ITEM 5. AUDIT COMMITTEE OF LISTED REGISTRANTS. Not applicable. ITEM 6. SCHEDULE OF INVESTMENTS. Not applicable. ITEM 7. DISCLOSURE OF PROXY VOTING POLICIES AND PROCEDURES FOR CLOSED-END MANAGEMENT INVESTMENT COMPANIES. Not applicable. ITEM 8. PORTFOLIO MANAGERS OF CLOSED-END MANAGEMENT INVESTMENT COMPANIES. Not applicable. ITEM 9. PURCHASES OF EQUITY SECURITIES BY CLOSED-END MANAGEMENT INVESTMENT COMPANY AND AFFILIATED PURCHASERS. Not applicable. ITEM 10. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS. Not applicable. ITEM 11. CONTROLS AND PROCEDURES. (a) The registrant's principal executive officer and principal financial officer have concluded, based on their evaluation of the registrant's disclosure controls and procedures as conducted within 90 days of the filing date of this report, that these disclosure controls and procedures are adequately designed and are operating effectively, except as discussed below, to ensure that information required to be disclosed by the registrant on Form N-CSR is recorded, processed, summarized and reported within the time periods specified in the Securities and Exchange Commission's rules and forms. In connection with its audit of the registrant's financial statements for the period ended March 31, 2006, PricewaterhouseCoopers LLP has advised management of the registrant that the registrant did not maintain effective controls over the accuracy of certain financial highlight data in the registrant's annual report. Specifically, the registrant did not maintain controls sufficient to ensure that total return data, though properly calculated from the registrant's accounting system, was accurately transferred to the financial statements. PricewaterhouseCoopers LLP's internal control report, which discusses this matter, is filed as an Exhibit to the registrant's most recent Form N-SAR. (b) There were no significant changes in the registrants internal control over financial reporting that occurred during the registrant's last fiscal half-year that have materially affected, or are reasonably likely to materially affect, the registrant's internal control over financial reporting. ITEM 12. EXHIBITS. (a)(1) THE CODE OF ETHICS THAT IS THE SUBJECT OF THE DISCLOSURE REQUIRED BY ITEM 2 IS ATTACHED HERETO. (a)(2) CERTIFICATIONS PURSUANT TO RULE 30A-2(A) ARE ATTACHED HERETO. (a)(3) NOT APPLICABLE. (b) CERTIFICATIONS PURSUANT TO RULE 30A-2(B) ARE FURNISHED HEREWITH. SIGNATURES Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized. (Registrant) STI Classic Funds By (Signature and Title)* /s/ Joel B. Engle ------------------------------------------------------ Joel B. Engle Treasurer Date June 8, 2006 -------------------------------- Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated. By (Signature and Title)* /s/ R. Jeffrey Young ------------------------------------------------------ R. Jeffrey Young President Date June 8, 2006 -------------------------------- By (Signature and Title)* /s/ Joel B. Engle ------------------------------------------------------ Joel B. Engle Treasurer Date June 8, 2006 -------------------------------- * Print the name and title of each signing officer under his or her signature. EX-99.CODE.ETH 2 l19783aexv99wcodeweth.txt EX-99.CODE.ETH EX-99.CODE ETH (P)(1) INVESTMENT COMPANY ACT OF 1940 CODE OF ETHICS Investment Company Act of 1940 CODE OF ETHICS While affirming its confidence in the integrity and good faith of all of its officers and trustees, STI Classic Funds and STI Classic Variable Trusts (collectively the "Trusts"), recognize that the knowledge of present or future portfolio transactions and, in certain instances, the power to influence portfolio transactions which may be possessed by certain of their officers, employees and trustees could place such individuals, if they engage in personal transactions in securities which are eligible for investment by a Trust, in a position where their personal interest may conflict with that of the Trusts. In view of the foregoing and in compliance with the provisions of the Investment Company Act of 1940 (the "1940 Act") Rule 17j-1(b)(1) as amended, the Trusts hereby adopt this Code of Ethics to specify and prohibit certain types of transactions deemed to create conflicts of interest (or at least the potential for or the appearance of such a conflict), and to establish reporting requirements and enforcement procedures. I. STATEMENT OF PRINCIPLES The Trusts' primary responsibility has always been and will continue to be the protection of shareholder assets. The primary responsibility of each of the Trusts' trustees, officers, investment personnel, and designated "access persons" (as defined under Section II(a)(1)) is to carry out his or her duties in an ethical and diligent manner that is designed to comply with all regulations and protect and enhance shareholder assets and relationships. Furthermore, each individual is expected to apply the same principles and moral codes in all personal and social pursuits. Individuals are expected to uphold the highest standards of business and personal integrity at all times and without exception. Violations of any regulations, policies and procedures, will not be taken lightly and ignorance of the requirements or poor memory retention are insufficient excuses. All violations will be addressed and resolved by senior compliance and business management (as deemed appropriate) as quickly and effectively as possible. The Chief Compliance Officer is now held responsible and liable for implementing and supervising policies and procedures. In addition, the SEC and other regulators require proof that any policy or procedure violations carry the appropriate penalty actions. Such actions may include but are not limited to: personal trading restrictions, loss of salary/bonus/general compensation, fines, suspension, termination, criminal and/or civil legal actions. In recognition of the trust and confidence placed in the Trusts by their shareholders, and to give effect to the Trusts' belief that its operations should be directed to the benefit of its shareholders, the Trusts hereby adopt the following general principles to guide the actions of their trustees, officers, investment personnel, employees and access persons. 1. The interests of the Trusts' shareholders are paramount, and all Trusts' trustees, officers, investment personnel, access persons and others who are in any way entrusted with the interests of shareholders must conduct themselves and their operations in such a manner that will give maximum effect to these principles by assiduously placing the interests of shareholders before their own. 2. All Trusts' trustees, officers, investment personnel, access persons and others who are in any way entrusted with the interests of shareholders are required to immediately report any violations of this code to the Chief Compliance Officer. 3. All Trusts' trustees, officers, investment personnel, access persons and others who are in any way entrusted with the interests of shareholders are required to comply with applicable Federal Securities Laws. 4. All personal transactions in securities by access persons (as defined under Section II (1)) must be accomplished so as to avoid even the appearance of a conflict of interest with the general interests of the Trusts and their shareholders. 5. All Trusts' access persons must avoid actions or activities that allow (or appear to allow) a person to profit or benefit from his or her position with respect to the Trusts, or that otherwise bring into question the person's independence or judgment. 6. Market timing abuse in any/all mutual funds regardless of whether the funds are managed by the Adviser, an Adviser affiliate, or a non-affiliated entity is strictly prohibited. II. PERSONAL TRADING RELATED DEFINITIONS (a) DEFINITIONS. For purposes of this section: (1) ACCESS PERSON means: (i) Any Advisory Person of a Fund or of a Fund's investment adviser. If an investment adviser's primary business is advising Funds or other advisory clients, all of the investment adviser's directors, officers, and general partners are presumed to be Access Persons of any Fund advised by the investment adviser. All of a Fund's directors, officers, and general partners are presumed to be Access Persons of the Fund. (ii) Any director, officer or general partner of a principal underwriter who, in the ordinary course of business, makes, participates in or obtains information regarding, the purchase or sale of Covered Securities by the Fund for which the principal underwriter acts, or whose functions or duties in the ordinary course of business relate to the making of any recommendation to the Fund regarding the purchase or sale of Covered Securities. (2) ADVISORY PERSON of a Fund or of a Fund's investment adviser means: (i) Any director, officer, general partner or employee of the Fund or investment adviser (or of any company in a control relationship to the Fund or investment adviser) who, in connection with his or her regular functions or duties, makes, participates in, or obtains information regarding, the purchase or sale of Covered Securities by a Fund, or whose functions relate to the making of any recommendations with respect to such purchases or sales; and (ii) Any natural person in a control relationship to the Fund or investment adviser who obtains information concerning recommendations made to the Fund with regard to the purchase or sale of Covered Securities by the Fund. (3) Control has the same meaning as in section 2(a)(9) of the Act [15 U.S.C. 80a-2(a)(9)]. (4) Covered Security means a security as defined in section 2(a)(36) of the Act [15 U.S.C. 80a-2(a)(36)], except that it does not include: (i) Direct obligations of the Government of the United States; (ii) Bankers' acceptances, bank certificates of deposit, commercial paper and high quality short-term debt instruments, including repurchase agreements; and (iii) Shares issued by open-end Funds. (5) Fund means an investment company registered under the Investment Company Act. (6) An Initial Public Offering means an offering of securities registered under the Securities Act of 1933 [15 U.S.C. 77a], the issuer of which, immediately before the registration, was not subject to the reporting requirements of sections 13 or 15(d) of the Securities Exchange Act of 1934 [15 U.S.C. 78m or 78o(d)]. (7) Investment Personnel of a Fund or of a Fund's investment adviser means: (i) Any employee of the Fund or investment adviser (or of any company in a control relationship to the Fund or investment adviser) who, in connection with his or her regular functions or duties, makes or participates in making recommendations regarding the purchase or sale of securities by the Fund. (ii) Any natural person who controls the Fund or investment adviser and who obtains information concerning recommendations made to the Fund regarding the purchase or sale of securities by the Fund. (8) A Limited Offering means an offering that is exempt from registration under the Securities Act of 1933 pursuant to section 4(2) or section 4(6) [15 U.S.C. 77d(2) or 77d(6)] or pursuant to rule 504, rule 505, or rule 506 [17 CFR 230.504, 230.505, or 230.506] under the Securities Act of 1933. (9) Purchase or sale of a Covered Security includes, among other things, the writing of an option to purchase or sell a Covered Security. (10) Security Held or to be Acquired by a Fund means: (i) Any Covered Security which, within the most recent 15 days: (A) Is or has been held by the Fund; or (B) Is being or has been considered by the Fund or its investment adviser for purchase by the Fund; and (ii) Any option to purchase or sell, and any security convertible into or exchangeable for, a Covered Security described in paragraph (a)(10)(i) of this section. (11) Automatic Investment Plan means a program in which regular periodic purchases (or withdrawals) are made automatically in (or from) investment accounts in accordance with a predetermined schedule and allocation. An Automatic Investment Plan includes a dividend reinvestment plan. (b) Unlawful Actions. It is unlawful for any affiliated person of or principal underwriter for a Fund, or any affiliated person of an investment adviser of or principal underwriter for a Fund, in connection with the purchase or sale, directly or indirectly, by the person of a Security Held or to be Acquired by the Fund: (1) To employ any device, scheme or artifice to defraud the Fund; (2) To make any untrue statement of a material fact to the Fund or omit to state a material fact necessary in order to make the statements made to the Fund, in light of the circumstances under which they are made, not misleading; (3) To engage in any act, practice or course of business that operates or would operate as a fraud or deceit on the Fund; or (4) To engage in any manipulative practice with respect to the Fund. (c) Code of Ethics--(1) Adoption and Approval of Code of Ethics. (i) Every Fund (other than a money market fund or a Fund that does not invest in Covered Securities) and each investment adviser of and principal underwriter for the Fund, must adopt a written code of ethics containing provisions reasonably necessary to prevent its Access Persons from engaging in any conduct prohibited by paragraph (b) of this section. (ii) The board of directors of a Fund, including a majority of directors who are not interested persons, must approve the code of ethics of the Fund, the code of ethics of each investment adviser and principal underwriter of the Fund, and any material changes to these codes. The board must base its approval of a code and any material changes to the code on a determination that the code contains provisions reasonably necessary to prevent Access Persons from engaging in any conduct prohibited by paragraph (b) of this section. Before approving a code of a Fund, investment adviser or principal underwriter or any amendment to the code, the board of directors must receive a certification from the Fund, investment adviser or principal underwriter that it has adopted procedures reasonably necessary to prevent Access Persons from violating the Fund's, investment adviser's, or principal underwriter's code of ethics. The Fund's board must approve the code of an investment adviser or principal underwriter before initially retaining the services of the investment adviser or principal underwriter. The Fund's board must approve a material change to a code no later than six months after adoption of the material change. (iii) If a Fund is a unit investment trust, the Fund's principal underwriter or depositor must approve the Fund's code of ethics, as required by paragraph (c)(1)(ii) of this section. If the Fund has more than one principal underwriter or depositor, the principal underwriters and depositors may designate, in writing, which principal underwriter or depositor must conduct the approval required by paragraph (c)(1)(ii) of this section, if they obtain written consent from the designated principal underwriter or depositor. (2) Administration of Code of Ethics. (i) The Fund, investment adviser and principal underwriter must use reasonable diligence and institute procedures reasonably necessary to prevent violations of its code of ethics. (ii) No less frequently than annually, every Fund (other than a unit investment trust) and its investment advisers and principal underwriters must furnish to the Fund's board of directors, and the board of directors must consider, a written report that: (A) Describes any issues arising under the code of ethics or procedures since the last report to the board of directors, including, but not limited to, information about material violations of the code or procedures and sanctions imposed in response to the material violations; and (B) Certifies that the Fund, investment adviser or principal underwriter, as applicable, has adopted procedures reasonably necessary to prevent Access Persons from violating the code. (3) Exception for Principal Underwriters. The requirements of paragraphs (c)(1) and (c)(2) of this section do not apply to any principal underwriter unless: (i) The principal underwriter is an affiliated person of the Fund or of the Fund's investment adviser; or (ii) An officer, director or general partner of the principal underwriter serves as an officer, director or general partner of the Fund or of the Fund's investment adviser. (d) Reporting Requirements of Access Persons--1) Reports Required. Unless excepted by paragraph (d)(2) of this section, every Access Person of a Fund (other than a money market fund or a Fund that does not invest in Covered Securities) and every Access Person of an investment adviser of or principal underwriter for the Fund, must report to that Fund, investment adviser or principal underwriter: (i) Initial Holdings Reports. No later than 10 days after the person becomes an Access Person (which information must be current as of a date no more than 45 days prior to the date the person becomes an Access Person): (A) The title, number of shares and principal amount of each Covered Security in which the Access Person had any direct or indirect beneficial ownership when the person became an Access Person; (B) The name of any broker, dealer or bank with whom the Access Person maintained an account in which any securities were held for the direct or indirect benefit of the Access Person as of the date the person became an Access Person; and (C) The date that the report is submitted by the Access Person. (ii) Quarterly Transaction Reports. No later than 30 days after the end of a calendar quarter, the following information: (A) With respect to any transaction during the quarter in a Covered Security in which the Access Person had any direct or indirect beneficial ownership: (1) The date of the transaction, the title, the interest rate and maturity date (if applicable), the number of shares and the principal amount of each Covered Security involved; (2) The nature of the transaction (i.e., purchase, sale or any other type of acquisition or disposition); (3) The price of the Covered Security at which the transaction was effected; (4) The name of the broker, dealer or bank with or through which the transaction was effected; and (5) The date that the report is submitted by the Access Person. (B) With respect to any account established by the Access Person in which any securities were held during the quarter for the direct or indirect benefit of the Access Person: (1) The name of the broker, dealer or bank with which the Access Person established the account; (2) The date the account was established; and (3) The date that the report is submitted by the Access Person. (iii) Annual Holdings Reports. Annually, the following information (which information must be current as of a date no more than 45 days before the report is submitted): (A) The title, number of shares and principal amount of each Covered Security in which the Access Person had any direct or indirect beneficial ownership; (B) The name of any broker, dealer or bank with whom the Access Person maintains an account in which any securities are held for the direct or indirect benefit of the Access Person; and (C) The date that the report is submitted by the Access Person. (2) Exceptions from Reporting Requirements. (i) A person need not make a report under paragraph (d)(1) of this section with respect to transactions effected for, and Covered Securities held in, any account over which the person has no direct or indirect influence or control. (ii) A director of a Fund who is not an "interested person" of the Fund within the meaning of section 2(a)(19) of the Act [15 U.S.C. 80a-2(a)(19)], and who would be required to make a report solely by reason of being a Fund director, need not make: (A) An initial holdings report under paragraph (d)(1)(i) of this section and an annual holdings report under paragraph (d)(1)(iii) of this section; and (B) A quarterly transaction report under paragraph (d)(1)(ii) of this section, unless the director knew or, in the ordinary course of fulfilling his or her official duties as a Fund director, should have known that during the 15-day period immediately before or after the director's transaction in a Covered Security, the Fund purchased or sold the Covered Security, or the Fund or its investment adviser considered purchasing or selling the Covered Security. (iii) An Access Person to a Fund's principal underwriter need not make a report to the principal underwriter under paragraph (d)(1) of this section if: (A) The principal underwriter is not an affiliated person of the Fund (unless the Fund is a unit investment trust) or any investment adviser of the Fund; and (B) The principal underwriter has no officer, director or general partner who serves as an officer, director or general partner of the Fund or of any investment adviser of the Fund. (iv) An Access Person to an investment adviser need not make a separate report to the investment adviser under paragraph (d)(1) of this section to the extent the information in the report would duplicate information required to be recorded under Section 275.204-2(a)(13) of this chapter. (v) An Access Person need not make a quarterly transaction report under paragraph (d)(1)(ii) of this section if the report would duplicate information contained in broker trade confirmations or account statements received by the Fund, investment adviser or principal underwriter with respect to the Access Person in the time period required by paragraph (d)(1)(ii), if all of the information required by that paragraph is contained in the broker trade confirmations or account statements, or in the records of the Fund, investment adviser or principal underwriter. (vi) An Access Person need not make a quarterly transaction report under paragraph (d)(1)(ii) of this section with respect to transactions effected pursuant to an Automatic Investment Plan. (3) Review of Reports. Each Fund, investment adviser and principal underwriter to which reports are required to be made by paragraph (d)(1) of this section must institute procedures by which appropriate management or compliance personnel review these reports. (4) Notification of Reporting Obligation. Each Fund, investment adviser and principal underwriter to which reports are required to be made by paragraph (d)(1) of this section must identify all Access Persons who are required to make these reports and must inform those Access Persons of their reporting obligation. (5) Beneficial Ownership. For purposes of this section, beneficial ownership is interpreted in the same manner as it would be under Section 240.16a-1(a)(2) of this chapter in determining whether a person is the beneficial owner of a security for purposes of section 16 of the Securities Exchange Act of 1934 [15 U.S.C. 78p] and the rules and regulations thereunder. Any report required by paragraph (d) of this section may contain a statement that the report will not be construed as an admission that the person making the report has any direct or indirect beneficial ownership in the Covered Security to which the report relates. (e) Pre-approval of Investments in IPOs and Limited Offerings. Investment Personnel of a Fund or its investment adviser must obtain approval from the Fund or the Fund's investment adviser before directly or indirectly acquiring beneficial ownership in any securities in an Initial Public Offering or in a Limited Offering. (f) Recordkeeping Requirements. (1) Each Fund, investment adviser and principal underwriter that is required to adopt a code of ethics or to which reports are required to be made by Access Persons must, at its principal place of business, maintain records in the manner and to the extent set out in this paragraph (f), and must make these records available to the Commission or any representative of the Commission at any time and from time to time for reasonable periodic, special or other examination: (A) A copy of each code of ethics for the organization that is in effect, or at any time within the past five years was in effect, must be maintained in an easily accessible place; (B) A record of any violation of the code of ethics, and of any action taken as a result of the violation, must be maintained in an easily accessible place for at least five years after the end of the fiscal year in which the violation occurs; (C) A copy of each report made by an Access Person as required by this section, including any information provided in lieu of the reports under paragraph (d)(2)(v) of this section, must be maintained for at least five years after the end of the fiscal year in which the report is made or the information is provided, the first two years in an easily accessible place; (D) A record of all persons, currently or within the past five years, who are or were required to make reports under paragraph (d) of this section, or who are or were responsible for reviewing these reports, must be maintained in an easily accessible place; and (E) A copy of each report required by paragraph (c)(2)(ii) of this section must be maintained for at least five years after the end of the fiscal year in which it is made, the first two years in an easily accessible place. (2) A Fund or investment adviser must maintain a record of any decision, and the reasons supporting the decision, to approve the acquisition by investment personnel of securities under paragraph (e), for at least five years after the end of the fiscal year in which the approval is granted. III. APPLICATION OF RULE 17J-1(B)(1) REQUIREMENTS It is understood by the Trusts that shareholder assets many be managed and/or serviced by a number of service providers and more than one investment adviser, all of whom may implement different Code of Ethics Standards, Policies and Procedures. Therefore, the Trusts hereby appoint each service provider including all investment advisers and subadvisers with the responsibility of ensuring adequate compliance with the Trusts' Code of Ethics and Rule 17j-1(b)(1), as amended. Wherever the investment adviser's, (and subadviser's or designated service provider's if/as requested) ethical codes and personal trading policies and procedures exceed the standards required under this Code of Ethics and/or Rule 17j-1(b)(1), applicable individuals will be expected to at all times adhere to the higher standards. The Trusts require that each investment adviser (and subadviser or designated service provider if/as requested) provide the Trusts' Chief Compliance Officer with Code of Ethics reports no less than quarterly. All code violations along with violation action assessments and any code or procedure change initiated to deter such activities in the future must be included. The investment adviser (and subadviser or designated service provider if/as requested) must, as soon as reasonably possible, submit to the Trusts a copy of the entity's Code of Ethics and all material changes as applicable. No less than annually, the investment adviser (and subadviser or designated service provider if/as requested) must provide a complete current copy of the entity's Code of Ethics. Revised 01.28.06 Approved 02.14.06 EX-99.CERT 3 l19783aexv99wcert.txt EX-99.CERT EX-99.CERT CERTIFICATIONS I, R. Jeffrey Young, certify that: 1. I have reviewed this report on Form N-CSR of STI Classic Funds (the "registrant"); 2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; 3. Based on my knowledge, the schedules of investments included in this report fairly present in all material respects the investments of the registrant as of the end of the fiscal quarter for which the report is filed; 4. The registrant's other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940) and internal control over financial reporting (as defined in Rule 30a-3(d) under the Investment Company Act of 1940) for the registrant and have: a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; c) Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of a date within 90 days prior to the filing date of this report based on such evaluation; and d) Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the second fiscal quarter of the period covered by this report that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and 5. The registrant's other certifying officer(s) and I have disclosed to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions): a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize, and report financial information; and b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting. June 8, 2006 /s/ R. Jeffrey Young Date ---------------------------------------- R. Jeffrey Young President EX-99.CERT CERTIFICATIONS I, Joel B. Engle, certify that: 1. I have reviewed this report on Form N-CSR of STI Classic Funds (the "registrant"); 2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; 3. Based on my knowledge, the schedules of investments included in this report fairly present in all material respects the investments of the registrant as of the end of the fiscal quarter for which the report is filed; 4. The registrant's other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940) and internal control over financial reporting (as defined in Rule 30a-3(d) under the Investment Company Act of 1940) for the registrant and have: a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; c) Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of a date within 90 days prior to the filing date of this report based on such evaluation; and d) Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the second fiscal quarter of the period covered by this report that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and 5. The registrant's other certifying officer(s) and I have disclosed to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions): a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize, and report financial information; and b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting. June 8, 2006 /s/ Joel B. Engle Date ---------------------------------------- Joel B. Engle Treasurer EX-99.906.CERT 4 l19783aexv99w906wcert.txt EX-99.906.CERT EX-99.906 CERT This certification is provided pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, 18 U.S.C. Section 1350, and accompanies the report on Form N-CSR for the period ended March 31, 2006 of STI Classic Funds (the "Registrant"). Each of the undersigned, being the Principal Executive Officer and Principal Financial Officer of the Registrant, hereby certifies that, to such officer's knowledge: 1. the Form N-CSR fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934 (15 U.S.C. 78m(a) or 78o(d)); and 2. the information contained in the Form N-CSR fairly presents, in all material respects, the financial condition and results of operations of the Registrant. June 8, 2006 Date /s/ R. Jeffrey Young ---------------------------------------- R. Jeffrey Young President /s/ Joel B. Engle ---------------------------------------- Joel B. Engle Treasurer This certification is being furnished solely pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 and is not being filed as part of Form N-CSR or as a separate disclosure document. A signed original of this written statement required by Section 906 has been provided to the Registrant and will be retained by the Registrant and furnished to the Securities and Exchange Commission or its staff upon request. -----END PRIVACY-ENHANCED MESSAGE-----