Sterling Capital Equity Income Fund (BAEIX) N-CSRS Certified semi-annual shareholder report (management investment company)

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 811-06719

BB&T Funds

(Exact name of registrant as specified in charter)

434 Fayetteville Street, 5th Floor, Raleigh, NC	27626-0575
(Address of principal executive offices)	(Zip code)

BISYS Fund Services, 3435 Stelzer Road, Columbus, OH 43219

(Name and address of agent for service)

Registrant’s telephone number, including area code: (800) 228-1872

Date of fiscal year end: September 30

Date of reporting period: March 31, 2006

Item 1. Reports to Stockholders.

BB&T FUNDS

TABLEOF CONTENTS

Letter from the President and the Investment Advisor	1
Summary of Portfolio Holdings	2
Expense Example	5
Schedule of Portfolio Investments
Large Cap Fund	9
Large Cap Growth Fund	11
Mid Cap Value Fund	13
Mid Cap Growth Fund	14
Small Cap Fund	15
International Equity Fund	17
Special Opportunities Equity Fund	20
Equity Income Fund	21
Short U.S. Government Fund	22
Intermediate U.S. Government Fund	23
Total Return Bond Fund	25
Kentucky Intermediate Tax-Free Fund	28
Maryland Intermediate Tax-Free Fund	30
North Carolina Intermediate Tax-Free Fund	31
South Carolina Intermediate Tax-Free Fund	33
Virginia Intermediate Tax-Free Fund	35
West Virginia Intermediate Tax-Free Fund	37
Prime Money Market Fund	39
U.S. Treasury Money Market Fund	42
Capital Manager Conservative Growth Fund	43
Capital Manager Moderate Growth Fund	44
Capital Manager Growth Fund	45
Capital Manager Equity Fund	46
Financial Statements	48
Notes to Financial Statements	96
Other Information	108

LETTER FROMTHE PRESIDENTANDTHE INVESTMENT ADVISOR

Dear Shareholders:

We are pleased to provide you this semiannual report covering the six-month period ended March 31, 2006.

The past six months were marked by a series of world events that have impacted U.S. financial markets. The lingering effects of the devastating hurricanes, rising cost of energy and the political and social unrest in the Middle East serve to illustrate how quickly incidents of enormous consequence can emerge and dominate not only the news, but also the financial markets. In addition, these events demonstrate how, through this period of rapid change, sensible, active portfolio management could produce positive results.

In equity markets, steady economic growth, relatively contained inflation, historically low long-term interest rates, and reasonable large-capitalization valuation levels all contributed to a favorable backdrop over the past six months. We believe the large and growing U.S. trade deficit combined with a shrinking short-term interest rate differential for the U.S. relative to the rest of the developed world should eventually put downward pressure on the dollar. Additionally, with healthy balance sheets and strong free-cash-flow, U.S. corporations have the flexibility to take shareholder-friendly actions such as raising dividends, repurchasing shares and make positive acquisitions.

On the fixed-income side, we continue to believe that the slower growth scenario will eventually play out as higher energy prices, lower home affordability and tighter monetary policy weigh on the economy. However, we do recognize that our time table is shifting toward the latter portion of our time horizon (6 to 12 months). We continue to have concerns that strong employment may continue to strengthen the economy, but a bet against slower growth is a bet against the Federal Reserve Board (the “Fed”), which raised the short-term interest rate to 4.75% after the 15th consecutive rate increase in March. We believe the Fed may raise rates to 5.25% in June as insurance tightening and then pause. This will allow them to gauge whether the economy is slowing as they anticipate. The Fed stated “economic growth has rebounded strongly in the current quarter but appears likely to moderate to a more currently sustainable pace” in the March statement release.

In the meantime, our equity managers are maintaining a strong bias toward high-quality stocks, based on an overall strategy that is modestly defensive in nature. Our fixed-income managers have positioned their funds to have greater exposure to interest-rate movements, and are redistributing assets more evenly across the yield curve.

We are focused on providing outstanding shareholder service, as well as active portfolio management. We welcome the opportunity to answer any questions or concerns you might have about the BB&T Funds. At any time, please feel free to speak with your investment professional, or call us at 1-800-228-1872.

Keith F. Karlawish, CFA

President

BB&T Funds

Jeffrey J. Schappe, CFA

Chief Investment Officer

BB&T Asset Management, Inc.

This report is authorized for distribution only when preceded or accompanied by a prospectus. Please read the prospectus carefully before investing or sending money. BB&T Asset Management, Inc., a wholly owned subsidiary of BB&T Corporation, serves as investment adviser to the BB&T Funds and is paid a fee for its services. Shares of the BB&T Funds are not deposits or obligations of, or guaranteed or endorsed by, Branch Banking and Trust Company or its affiliates. The Funds are not insured by the FDIC or any other government agency. The Funds are distributed by BB&T Funds Distributor, Inc. The distributor is not affiliated with Branch Banking and Trust Company or its affiliates.

The foregoing information and opinions are for general information only. BB&T Asset Management, Inc. does not guarantee their accuracy or completeness, nor assume liability for any loss, which may result from the reliance by any person upon any such information or opinions. Such information and opinions are subject to change without notice, are for general information only and are not intended as an offer or solicitation with respect to the purchase or sale of any security or offering individual or personalized investment advice.

1

BB&T Funds

Summary of Portfolio Holdings, (unaudited)

The BB&T Funds portfolio composition was as follows at March 31, 2006.

Large Cap Fund	Percent of net assets
Consumer Discretionary	7.9	%
Consumer Staples	5.8
Energy	13.4
Financials	31.4
Health Care	9.2
Industrials	6.7
Information Technology	8.6
Materials	5.0
Telecommunication Services	4.5
Utilities	4.6
Short-Term Investments*	26.6
	123.7	%

Large Cap Growth Fund	Percent of net assets
Consumer Discretionary	9.2	%
Consumer Staples	4.3
Energy	7.1
Financials	9.9
Health Care	14.0
Industrials	21.2
Information Technology	25.3
Materials	1.6
Telecommunication Services	6.4
Short-Term Investments*	31.8
	130.8	%

Mid Cap Value Fund	Percent of net assets
Advertising	2.0	%
Computer Software	8.2
Consumer Discretionary	11.6
Energy	4.4
Financials	33.7
Health Care	8.0
Industrials	16.9
Information Technology	5.5
Telecommunication Services	5.7
Short-Term Investments*	28.9
	124.9	%

Mid Cap Growth Fund	Percent of net assets
Consumer Discretionary	12.0	%
Energy	11.7
Exchange Traded Funds	1.0
Financials	14.6
Health Care	12.2
Industrials	15.0
Information Technology	23.7
Materials	3.1
Telecommunication Services	5.5
Short-Term Investments*	52.1
	150.9	%

Small Cap Fund	Percent of net assets
Consumer Discretionary	12.8	%
Consumer Staples	1.3
Corporate Bonds	0.1
Energy	7.1
Exchange Traded Funds	12.4
Financials	14.6
Health Care	4.8
Industrials	17.0
Information Technology	15.6
Materials	4.0
Telecommunication Services	0.6
Utilities	2.1
Short-Term Investments*	33.9
	126.3	%

International Equity Fund	Percent of net assets
Australia	2.8	%
Austria	0.5
Belgium	2.3
Exchange Traded Funds	1.3
Finland	1.7
Forward Foreign Currency Contracts	0.0
France	7.8
Germany	8.2
Great Britain	21.9
Hong Kong	1.7
Ireland	2.4
Italy	2.2
Japan	22.9
Netherlands	8.5
Norway	0.9
Spain	2.9
Singapore	0.1
Sweden	1.9
Switzerland	9.7
	99.7	%

Special Opportunities Equity Fund	Percent of net assets
Commercial Services	3.9	%
Consumer Discretionary	17.7
Energy	15.9
Financials	9.0
Health Care	21.1
Industrials	8.0
Information Technology	10.8
Investment Companies	0.3
Short-Term Investments*	13.2
Written Options	(0.1	)
	99.8	%

2

BB&T Funds

Summary of Portfolio Holdings, continued (unaudited)

Equity Income Fund	Percent of net assets
Consumer Staples	10.6	%
Energy	16.8
Financials	36.6
Health Care	7.2
Industrials	3.7
Information Technology	4.1
Investment Companies	0.5
Materials	3.7
Telecommunication Services	3.4
Utilities	7.5
Short-Term Investments*	5.5
Written Options	(0.0	)
	99.6	%

Short U.S. Government Fund	Percent of net assets
Federal Farm Credit Bank	5.0	%
Federal Home Loan Bank	12.8
Federal Home Loan Mortgage Corp. — Mortgage-Backed Securities	13.0
Federal Home Loan Mortgage Corp. — U.S. Government Agencies	17.1
Federal National Mortgage Assoc. — Mortgage-Backed Securities	11.0
Federal National Mortgage Assoc. — U.S. Government Agencies	16.8
U.S. Treasury Notes	23.3
Short-Term Investments*	50.0
	149.0	%

Intermediate U.S. Government Fund	Percent of net assets
Federal Farm Credit Bank	1.9	%
Federal Home Loan Bank	4.3
Federal Home Loan Mortgage Corp. — Mortgage-Backed Securities	23.7
Federal Home Loan Mortgage Corp. — U.S. Government Agencies	8.1
Federal National Mortgage Assoc. — Mortgage-Backed Securities	41.5
Federal National Mortgage Assoc. — U.S. Government Agencies	1.1
Government National Mortgage	1.2
Sovereign	1.3
U.S. Government Backed Securities	4.5
U.S. Treasury Bonds & Notes	11.3
Short-Term Investments*	34.9
	133.8	%

Total Return Bond Fund	Percent of net assets
Corporate Bonds	43.1	%
Federal Home Loan Bank	4.4
Federal Home Loan Mortgage Corp. — Mortgage-Backed Securities	9.2
Federal Home Loan Mortgage Corp. — U.S. Government Agencies	2.4
Federal National Mortgage Assoc. — Mortgage-Backed Securities	14.4
Federal National Mortgage Assoc. — U.S. Government Agencies	2.5
Government National Mortgage Assoc.	11.4
Municipal	6.2
U.S. Treasury Bonds	9.3
U.S. Treasury Notes	6.7
Short-Term Investments*	29.5
	139.1	%

Kentucky Intermediate Tax-Free Fund	Percent of net assets
Education	15.7	%
Facilities Support Services	43.2
Health Care	3.4
Housing	1.9
Investment Company	4.8
Transportation	8.0
Urban and Community Development	8.8
Utilities	13.0
	98.8	%

Maryland Intermediate Tax-Free Fund	Percent of net assets
Education	19.9	%
General Obligations	61.7
Housing	2.3
Investment Companies	5.3
Pollution Control	7.7
Transportation	3.4
	100.3	%

North Carolina Intermediate Tax-Free Fund	Percent of net assets
Education	13.4	%
General Obligations	35.3
Health Care	16.5
Investment Company	1.7
Lease/Purchase	1.4
Transportation	2.3
Utilities	28.2
	98.8	%

3

BB&T Funds

Summary of Portfolio Holdings, continued (unaudited)

South Carolina Intermediate Tax-Free Fund	Percent of net assets
Education	45.2	%
General Obligations	9.3
Health Care	12.8
Housing	0.5
Investment Company	2.1
Public Improvements	2.5
Utilities	29.2
	101.6	%

Virginia Intermediate Tax-Free Fund	Percent of net assets
Correctional Facilities	3.0	%
Education	15.8
General Obligations	48.8
Health Care	1.3
Investment Company	1.4
Transportation	6.6
Utilities	22.1
	99.0	%

West Virginia Intermediate Tax-Free Fund	Percent of net assets
Building — Residential/Commercial	4.6	%
Economic Development	3.4
Education	16.7
General Obligations	11.8
Health Care	14.9
Housing	3.9
Investment Company	3.1
Pollution Control	6.0
Transportation	16.1
Utilities	20.8
	101.3	%

Prime Money Market Fund	Percent of net assets
Certificates of Deposit	11.2	%
Commercial Paper	26.1
Corporate Bonds	4.7
Variable Rate Notes	34.2
Collateralized Loan Agreements and Repurchase Agreements	24.0
	100.2	%

U.S. Treasury Money Market Fund	Percent of net assets
Repurchase Agreements	50.1	%
U.S. Treasury Bills	34.9
U.S. Treasury Notes	15.2
	100.2	%

Capital Manager Conservative Growth Fund	Percent of net assets
International Equity	5.9	%
Large Cap Equity	26.0
Small Cap Equity	4.7
Mid Cap Equity	3.1
Fixed Income	57.0
Money Market	3.2
	99.9	%

Capital Manager Moderate Growth Fund	Percent of net assets
International Equity	9.7	%
Large Cap Equity	42.4
Mid Cap Equity	7.7
Small Cap Equity	5.0
Fixed Income	32.0
Money Market	3.2
	100.0	%

Capital Manager Growth Fund	Percent of net assets
International Equity	11.9	%
Large Cap Equity	52.2
Mid Cap Equity	9.5
Small Cap Equity	6.2
Fixed Income	17.0
Money Market	4.4
	101.2	%

Capital Manager Equity Fund	Percent of net assets
International Equity	14.5	%
Large Cap Equity	63.2
Mid Cap Equity	11.6
Small Cap Equity	7.5
Money Market	4.4
	101.2	%

* Short-Term Investments represents the Repurchase Agreement and the invested cash collateral received in connection with securities lending (see Note 2).

4

BB&T Funds

Expense Example (unaudited)

As a shareholder of the BB&T Funds, 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; distribution fees; and other Fund expenses.

These examples are intended to help you understand your ongoing costs (in dollars) of investing in the BB&T 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 Example

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 Account Value 10/1/05		Ending Account Value 3/31/06		Expenses Paid During Period* 10/1/05 - 3/31/06		Expense Ratio During Period 10/1/05 - 3/31/06
Large Cap Fund
Class A Shares	$	1,000.00	$	1,075.60	$	5.85	1.13	%
Class B Shares		1,000.00		1,071.70		9.71	1.88	%
Class C Shares		1,000.00		1,071.10		9.71	1.88	%
Institutional Shares		1,000.00		1,077.20		4.56	0.88	%
Large Cap Growth Fund
Class A Shares		1,000.00		1,034.30		5.73	1.13	%
Class B Shares		1,000.00		1,029.50		9.51	1.88	%
Class C Shares		1,000.00		1,029.50		9.46	1.87	%
Institutional Shares		1,000.00		1,035.00		4.46	0.88	%
Mid Cap Value Fund
Class A Shares		1,000.00		1,101.60		5.92	1.13	%
Class B Shares		1,000.00		1,097.40		9.83	1.88	%
Class C Shares		1,000.00		1,097.40		9.88	1.89	%
Institutional Shares		1,000.00		1,103.20		4.61	0.88	%
Mid Cap Growth Fund
Class A Shares		1,000.00		1,123.80		5.98	1.13	%
Class B Shares		1,000.00		1,119.90		9.94	1.88	%
Class C Shares		1,000.00		1,119.90		9.88	1.87	%
Institutional Shares		1,000.00		1,125.90		4.66	0.88	%
Small Cap Fund
Class A Shares		1,000.00		1,115.20		6.64	1.26	%
Class B Shares		1,000.00		1,111.60		10.90	2.07	%
Class C Shares		1,000.00		1,111.60		10.48	1.99	%
Institutional Shares		1,000.00		1,116.80		5.33	1.01	%
International Equity Fund
Class A Shares		1,000.00		1,123.30		7.46	1.41	%
Class B Shares		1,000.00		1,119.90		11.42	2.16	%
Class C Shares		1,000.00		1,120.20		11.42	2.16	%
Institutional Shares		1,000.00		1,124.90		6.15	1.16	%
Special Opportunities Equity Fund
Class A Shares		1,000.00		1,033.80		6.49	1.28	%
Class B Shares		1,000.00		1,030.40		10.28	2.03	%
Class C Shares		1,000.00		1,030.40		10.28	2.03	%
Institutional Shares		1,000.00		1,035.60		5.23	1.03	%
Equity Income Fund
Class A Shares		1,000.00		1,076.40		6.16	1.19	%
Class B Shares		1,000.00		1,072.00		10.02	1.94	%
Class C Shares		1,000.00		1,072.10		10.02	1.94	%
Institutional Shares		1,000.00		1,077.60		4.87	0.94	%
Short U.S. Government Fund
Class A Shares		1,000.00		1,006.90		4.50	0.90	%
Institutional Shares		1,000.00		1,008.10		3.20	0.64	%
Intermediate U.S. Government Fund
Class A Shares		1,000.00		996.40		4.68	0.94	%
Class B Shares		1,000.00		992.70		8.40	1.69	%
Class C Shares		1,000.00		993.70		8.40	1.69	%
Institutional Shares		1,000.00		997.70		3.44	0.69	%

5

BB&T Funds

Expense Example (unaudited), continued

	Beginning Account Value 10/1/05		Ending Account Value 3/31/06		Expenses Paid During Period* 10/1/05 - 3/31/06		Expense Ratio During Period 10/1/05 - 3/31/06
Total Return Bond Fund
Class A Shares	$	1,000.00	$	996.60	$	4.68	0.94	%
Class B Shares		1,000.00		993.90		8.35	1.68	%
Class C Shares		1,000.00		992.90		8.35	1.68	%
Institutional Shares		1,000.00		998.80		3.39	0.68	%
Kentucky Intermediate Tax-Free Fund
Class A Shares		1,000.00		1,003.60		4.50	0.90	%
Institutional Shares		1,000.00		1,005.90		3.25	0.65	%
Maryland Intermediate Tax-Free Fund
Class A Shares		1,000.00		1,002.40		4.24	0.85	%
Institutional Shares		1,000.00		1,003.60		3.00	0.60	%
North Carolina Intermediate Tax-Free Fund
Class A Shares		1,000.00		1,003.40		4.50	0.90	%
Institutional Shares		1,000.00		1,004.60		3.25	0.65	%
South Carolina Intermediate Tax-Free Fund
Class A Shares		1,000.00		1,001.90		4.69	0.94	%
Institutional Shares		1,000.00		1,003.20		3.45	0.69	%
Virginia Intermediate Tax-Free Fund
Class A Shares		1,000.00		1,001.70		4.49	0.90	%
Institutional Shares		1,000.00		1,003.00		3.25	0.65	%
West Virginia Intermediate Tax-Free Fund
Class A Shares		1,000.00		1,007.20		4.55	0.91	%
Institutional Shares		1,000.00		1,008.40		3.30	0.66	%
Prime Money Market Fund
Class A Shares		1,000.00		1,016.80		4.93	0.98	%
Class B Shares		1,000.00		1,014.30		7.43	1.48	%
Class C Shares		1,000.00		1,014.30		7.43	1.48	%
Institutional Shares		1,000.00		1,019.40		2.42	0.48	%
U.S. Treasury Money Market Fund
Class A Shares		1,000.00		1,015.60		4.87	0.97	%
Class B Shares		1,000.00		1,013.10		7.38	1.47	%
Class C Shares		1,000.00		1,013.10		7.38	1.47	%
Institutional Shares		1,000.00		1,018.10		2.36	0.47	%
Capital Manager Conservative Growth Fund
Class A Shares		1,000.00		1,029.10		1.72	0.34	%
Class B Shares		1,000.00		1,026.30		5.51	1.09	%
Class C Shares		1,000.00		1,026.20		5.51	1.09	%
Institutional Shares		1,000.00		1,031.20		0.46	0.09	%
Capital Manager Moderate Growth Fund
Class A Shares		1,000.00		1,049.20		1.84	0.36	%
Class B Shares		1,000.00		1,044.00		5.66	1.11	%
Class C Shares		1,000.00		1,043.80		5.66	1.11	%
Institutional Shares		1,000.00		1,049.20		0.56	0.11	%
Capital Manager Growth Fund
Class A Shares		1,000.00		1,060.70		1.90	0.37	%
Class B Shares		1,000.00		1,056.90		5.74	1.12	%
Class C Shares		1,000.00		1,056.60		5.74	1.12	%
Institutional Shares		1,000.00		1,061.90		0.62	0.12	%
Capital Manager Equity Fund
Class A Shares		1,000.00		1,077.50		1.86	0.36	%
Class B Shares		1,000.00		1,072.20		5.73	1.11	%
Class C Shares		1,000.00		1,071.40		5.73	1.11	%
Institutional Shares		1,000.00		1,078.30		0.57	0.11	%

* 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.

6

BB&T Funds

Expense Example (unaudited), continued

Hypothetical Example for Comparison Purposes

The table below provides information about hypothetical account values and hypothetical expenses based on each BB&T 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 owning different funds. In addition, if these transactional costs were included, your costs would have been higher.

	Beginning Account Value 10/1/05		Ending Account Value 3/31/06		Expenses Paid During Period* 10/1/05 - 3/31/06		Expense Ratio During Period 10/1/05 - 3/31/06
Large Cap Fund
Class A Shares	$	1,000.00	$	1,019.30	$	5.69	1.13	%
Class B Shares		1,000.00		1,015.56		9.45	1.88	%
Class C Shares		1,000.00		1,015.56		9.45	1.88	%
Institutional Shares		1,000.00		1,020.54		4.43	0.88	%
Large Cap Growth Fund
Class A Shares		1,000.00		1,019.30		5.69	1.13	%
Class B Shares		1,000.00		1,015.56		9.45	1.88	%
Class C Shares		1,000.00		1,015.61		9.40	1.87	%
Institutional Shares		1,000.00		1,020.54		4.43	0.88	%
Mid Cap Value Fund
Class A Shares		1,000.00		1,019.30		5.69	1.13	%
Class B Shares		1,000.00		1,015.56		9.45	1.88	%
Class C Shares		1,000.00		1,015.51		9.50	1.89	%
Institutional Shares		1,000.00		1,020.54		4.43	0.88	%
Mid Cap Growth Fund
Class A Shares		1,000.00		1,019.30		5.69	1.13	%
Class B Shares		1,000.00		1,015.56		9.45	1.88	%
Class C Shares		1,000.00		1,015.61		9.40	1.87	%
Institutional Shares		1,000.00		1,020.54		4.43	0.88	%
Small Cap Fund
Class A Shares		1,000.00		1,018.65		6.34	1.26	%
Class B Shares		1,000.00		1,014.61		10.40	2.07	%
Class C Shares		1,000.00		1,015.01		10.00	1.99	%
Institutional Shares		1,000.00		1,019.90		5.09	1.01	%
International Equity Fund
Class A Shares		1,000.00		1,017.90		7.09	1.41	%
Class B Shares		1,000.00		1,014.16		10.85	2.16	%
Class C Shares		1,000.00		1,014.16		10.85	2.16	%
Institutional Shares		1,000.00		1,019.15		5.84	1.16	%
Special Opportunities Equity Fund
Class A Shares		1,000.00		1,018.55		6.44	1.28	%
Class B Shares		1,000.00		1,014.81		10.20	2.03	%
Class C Shares		1,000.00		1,014.81		10.20	2.03	%
Institutional Shares		1,000.00		1,019.80		5.19	1.03	%
Equity Income Fund
Class A Shares		1,000.00		1,019.00		5.99	1.19	%
Class B Shares		1,000.00		1,015.26		9.75	1.94	%
Class C Shares		1,000.00		1,015.26		9.75	1.94	%
Institutional Shares		1,000.00		1,020.24		4.73	0.94	%
Short U.S. Government Fund
Class A Shares		1,000.00		1,020.44		4.53	0.90	%
Institutional Shares		1,000.00		1,021.74		3.23	0.64	%
Intermediate U.S. Government Fund
Class A Shares		1,000.00		1,020.24		4.73	0.94	%
Class B Shares		1,000.00		1,016.50		8.50	1.69	%
Class C Shares		1,000.00		1,016.50		8.50	1.69	%
Institutional Shares		1,000.00		1,021.49		3.48	0.69	%
Total Return Bond Fund
Class A Shares		1,000.00		1,020.24		4.73	0.94	%
Class B Shares		1,000.00		1,016.55		8.45	1.68	%
Class C Shares		1,000.00		1,016.55		8.45	1.68	%
Institutional Shares		1,000.00		1,021.54		3.43	0.68	%

7

BB&T Funds

Expense Example (unaudited), continued

	Beginning Account Value 10/1/05		Ending Account Value 3/31/06		Expenses Paid During Period* 10/1/05 - 3/31/06		Expense Ratio During Period 10/1/05 - 3/31/06
Kentucky Intermediate Tax-Free Fund
Class A Shares	$	1,000.00	$	1,020.44	$	4.53	0.90	%
Institutional Shares		1,000.00		1,021.69		3.28	0.65	%
Maryland Intermediate Tax-Free Fund
Class A Shares		1,000.00		1,020.69		4.28	0.85	%
Institutional Shares		1,000.00		1,021.94		3.02	0.60	%
North Carolina Intermediate Tax-Free Fund
Class A Shares		1,000.00		1,020.44		4.53	0.90	%
Institutional Shares		1,000.00		1,021.69		3.28	0.65	%
South Carolina Intermediate Tax-Free Fund
Class A Shares		1,000.00		1,020.24		4.73	0.94	%
Institutional Shares		1,000.00		1,021.49		3.48	0.69	%
Virginia Intermediate Tax-Free Fund
Class A Shares		1,000.00		1,020.44		4.53	0.90	%
Institutional Shares		1,000.00		1,021.69		3.28	0.65	%
West Virginia Intermediate Tax-Free Fund
Class A Shares		1,000.00		1,020.39		4.58	0.91	%
Institutional Shares		1,000.00		1,021.64		3.33	0.66	%
Prime Money Market Fund
Class A Shares		1,000.00		1,020.04		4.94	0.98	%
Class B Shares		1,000.00		1,017.55		7.44	1.48	%
Class C Shares		1,000.00		1,017.55		7.44	1.48	%
Institutional Shares		1,000.00		1,022.54		2.42	0.48	%
U.S. Treasury Money Market Fund
Class A Shares		1,000.00		1,020.09		4.89	0.97	%
Class B Shares		1,000.00		1,017.60		7.39	1.47	%
Class C Shares		1,000.00		1,017.60		7.39	1.47	%
Institutional Shares		1,000.00		1,022.59		2.37	0.47	%
Capital Manager Conservative Growth Fund
Class A Shares		1,000.00		1,023.24		1.72	0.34	%
Class B Shares		1,000.00		1,019.50		5.49	1.09	%
Class C Shares		1,000.00		1,019.50		5.49	1.09	%
Institutional Shares		1,000.00		1,024.48		0.45	0.09	%
Capital Manager Moderate Growth Fund
Class A Shares		1,000.00		1,023.14		1.82	0.36	%
Class B Shares		1,000.00		1,019.40		5.59	1.11	%
Class C Shares		1,000.00		1,019.40		5.59	1.11	%
Institutional Shares		1,000.00		1,024.38		0.56	0.11	%
Capital Manager Growth Fund
Class A Shares		1,000.00		1,023.09		1.87	0.37	%
Class B Shares		1,000.00		1,019.35		5.64	1.12	%
Class C Shares		1,000.00		1,019.35		5.64	1.12	%
Institutional Shares		1,000.00		1,024.33		0.61	0.12	%
Capital Manager Equity Fund
Class A Shares		1,000.00		1,023.14		1.82	0.36	%
Class B Shares		1,000.00		1,019.40		5.59	1.11	%
Class C Shares		1,000.00		1,019.40		5.59	1.11	%
Institutional Shares		1,000.00		1,024.38		0.56	0.11	%

* 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.

8

Large Cap Fund (formerly known as Large Company Value Fund)

Schedule of Portfolio Investments March 31, 2006

(Unaudited)

	Shares	Fair Value
Common Stocks (97.1%)
Consumer Discretionary (7.9%)
Federated Department Stores, Inc. (b)	62,409	$	4,555,857
Gannett Co., Inc. (b)	282,000		16,897,440
Mattel, Inc.	434,800		7,882,924
V.F. Corp. (b)	103,250		5,874,925
Walt Disney Co. (The) (b)	650,000		18,128,500
Whirlpool Corp.	28,000		2,561,160
			55,900,806
Consumer Staples (5.8%)
Albertson’s, Inc.	217,720		5,588,872
Altria Group, Inc.	138,590		9,820,487
Kimberly-Clark Corp.	276,500		15,981,701
Sara Lee Corp.	568,010		10,156,019
			41,547,079
Energy (13.4%)
Anadarko Petroleum Corp. (b)	109,500		11,060,595
Apache Corp.	25,000		1,637,750
Burlington Resources, Inc.	70,000		6,433,700
ChevronTexaco Corp. (b)	329,460		19,098,796
ConocoPhillips (b)	319,834		20,197,517
Exxon Mobil Corp. (b)	290,000		17,649,400
Royal Dutch Shell PLC, A Shares, ADR (b)	212,600		13,236,476
Schlumberger Ltd. (b)	48,000		6,075,360
			95,389,594
Financials (31.4%)
Ambac Financial Group, Inc.	93,100		7,410,760
American International Group, Inc.	182,000		12,028,380
Bank of America Corp.	482,600		21,977,605
Bank of New York Co., Inc. (The)	250,000		9,010,000
Citigroup, Inc.	405,666		19,163,662
Equity Residential, REIT (b)	154,000		7,205,660
Fannie Mae	206,000		10,588,400
Franklin Resources, Inc.	5,800		546,592
ING Groep NV, ADR (b)	236,680		9,325,192
J.P. Morgan Chase & Co.	507,772		21,143,626
Lincoln National Corp. (b)	118,600		6,474,374
Merrill Lynch & Co., Inc. (b)	190,000		14,964,400
Northern Trust Corp.	257,718		13,530,195
Old Republic International Corp.	362,500		7,909,750
PNC Financial Services Group, Inc.	197,500		13,293,725
St. Paul Travelers Cos., Inc. (The)	298,500		12,474,315
SunTrust Banks, Inc.	131,000		9,531,560
Washington Mutual, Inc. (b)	318,000		13,553,160
Wells Fargo & Co.	108,800		6,949,056
Willis Group Holdings, Ltd.	203,600		6,975,336
			224,055,748
Health Care (9.2%)
Abbott Laboratories	186,000		7,899,420
Bristol-Myers Squibb Co.	233,080		5,736,099
Cigna Corp.	84,700		11,063,514
HCA, Inc. (b)	155,800		7,134,082
Johnson & Johnson	130,600		7,734,132
Merck & Co., Inc. (b)	308,000		10,850,840

	Shares or Principal Amount		Fair Value
Common Stocks, continued
Health Care, continued
Pfizer, Inc.		310,000	$	7,725,200
Wyeth (b)		145,000		7,035,400
				65,178,687
Industrials (6.7%)
CSX Corp.		65,200		3,898,960
Emerson Electric Co. (The)		41,370		3,459,773
General Electric Co.		105,000		3,651,900
Parker-Hannifin Corp.		117,000		9,431,370
Pitney Bowes, Inc. (b)		176,800		7,590,024
Raytheon Co.		247,500		11,345,400
Textron, Inc.		90,000		8,405,100
				47,782,527
Information Technology (8.6%)
Automatic Data Processing, Inc.		142,400		6,504,832
First Data Corp.		152,000		7,116,640
Hewlett-Packard Co.		430,000		14,147,000
IBM Corp.		73,000		6,020,310
Microsoft Corp.		243,000		6,612,030
Nokia Corp., ADR		550,000		11,396,000
Time Warner, Inc. (b)		564,000		9,469,560
				61,266,372
Materials (5.0%)
Air Products & Chemicals, Inc.		129,700		8,714,543
Alcoa, Inc. (b)		252,000		7,701,120
E.I. DuPont de Nemours & Co. (b)		45,600		1,924,776
Phelps Dodge Corp.		44,800		3,607,744
Weyerhaeuser Co. (b)		186,500		13,508,195
				35,456,378
Telecommunication Services (4.5%)
AT&T, Inc.		421,837		11,406,472
BellSouth Corp.		180,000		6,237,000
Verizon Communications, Inc.		427,000		14,543,620
				32,187,092
Utilities (4.6%)
Dominion Resources, Inc., Virginia (b)		99,000		6,833,970
Duke Energy Corp. (b)		242,000		7,054,300
NiSource, Inc. (b)		538,100		10,880,382
SCANA Corp. (b)		87,467		3,432,205
Xcel Energy, Inc.		231,275		4,197,641
				32,398,498
Total Common Stocks (Cost $503,820,836)				691,162,781
Repurchase Agreement (2.8%)
U.S. Bank NA, 4.55%, dated 3/31/06, maturing 4/3/06, with a maturity value of $20,195,875 (Collateralized fully by U.S. Government Agencies)	$	20,188,220		20,188,220
Total Repurchase Agreement (Cost $20,188,220)				20,188,220

Continued

9

Large Cap Fund (formerly known as Large Company Value Fund)

Schedule of Portfolio Investments, continued March 31, 2006

(Unaudited)

	Principal Amount		Fair Value
Securities Held as Collateral for Securities on Loan (23.8%)
Pool of Various Securities for BB&T Funds — Note 2 — Security Loans	$	169,698,443	$	169,698,443
Total Securities Held as Collateral for Securities on Loan (Cost $169,698,443)				169,698,443
Total Investments (Cost $693,707,499) — 123.7%				881,049,444
Net other assets (liabilities) — (23.7)%				(169,077,650	)
Net Assets — 100.0%			$	711,971,794

See page 47 for footnote legend to the Schedules of Portfolio Investments.

See accompanying notes to the financial statements.

10

Large Cap Growth Fund (formerly known as Large Company Growth Fund)

Schedule of Portfolio Investments March 31, 2006

(Unaudited)

	Shares	Fair Value
Common Stocks (99.0%)
Consumer Discretionary (9.2%)
American Eagle Outfitters, Inc. (b)	128,000	$	3,822,080
Chico’s FAS, Inc. (a)(b)	94,000		3,820,160
Coach, Inc. (a)	57,784		1,998,171
eBay, Inc. (a)(b)	149,000		5,819,940
Lowe’s Companies, Inc. (b)	57,000		3,673,080
Nike, Inc., Class B (b)	31,399		2,672,055
Staples, Inc. (b)	225,000		5,742,000
Starbucks Corp. (a)(b)	163,000		6,135,319
Target Corp.	33,059		1,719,399
			35,402,204
Consumer Staples (4.3%)
Archer-Daniels-Midland Co.	137,000		4,610,050
PepsiCo, Inc.	108,776		6,286,165
Procter & Gamble Co.	97,000		5,589,140
			16,485,355
Energy (7.1%)
Anadarko Petroleum Corp. (b)	56,402		5,697,166
Baker Hughes, Inc. (b)	96,179		6,578,643
ConocoPhillips (b)	58,959		3,723,261
Halliburton Co. (b)	35,589		2,598,709
Schlumberger Ltd. (b)	30,500		3,860,385
Valero Energy Corp.	80,000		4,782,400
			27,240,564
Financials (9.9%)
American International Group, Inc.	80,529		5,322,162
Bear Stearns Cos., Inc. (The) (b)	42,000		5,825,400
Chicago Mercantile Exchange Holdings, Inc. (b)	8,960		4,009,600
Franklin Resources, Inc. (b)	38,706		3,647,653
Goldman Sachs Group, Inc. (The) (b)	39,000		6,121,440
Merrill Lynch & Co., Inc.	73,000		5,749,480
Prudential Financial, Inc.	50,000		3,790,500
Schwab (Charles) Corp.	215,000		3,700,150
			38,166,385
Health Care (14.0%)
Aetna, Inc. (b)	75,000		3,685,500
AmerisourceBergen Corp.	81,000		3,909,870
Amgen, Inc. (a)	48,862		3,554,711
Caremark Rx, Inc. (a)(b)	90,277		4,439,823
Fisher Scientific International, Inc. (a)(b)	82,279		5,599,086
Genentech, Inc. (a)(b)	46,000		3,887,460
Genzyme Corp. (a)	31,811		2,138,335
Gilead Sciences, Inc. (a)	64,050		3,985,191
Medco Health Solutions, Inc. (a)	66,796		3,822,067
Medtronic, Inc.	73,000		3,704,750
Novartis AG, ADR (b)	80,900		4,485,096
UnitedHealth Group, Inc.	31,332		1,750,206
Wellpoint, Inc. (a)	46,131		3,571,923
Wyeth	107,500		5,215,900
			53,749,918
Industrials (21.2%)
Boeing Co. (b)	114,824		8,948,234
Caterpillar, Inc. (b)	145,292		10,433,419
Danaher Corp. (b)	82,281		5,228,958

	Shares or Principal Amount		Fair Value
Common Stocks, continued
Industrials, continued
Emerson Electric Co. (The)		68,000	$	5,686,840
FedEx Corp.		36,712		4,146,253
General Electric Co.		166,000		5,773,480
Honeywell International, Inc.		91,000		3,892,070
Illinois Tool Works, Inc. (b)		21,131		2,035,127
Joy Global, Inc.		72,000		4,303,440
Monster Worldwide, Inc. (a)(b)		154,000		7,678,440
Precision Castparts Corp.		81,000		4,811,400
Union Pacific Corp.		64,000		5,974,400
United Parcel Service, Inc., Class B (b)		61,934		4,916,321
United Technologies Corp.		128,479		7,447,928
				81,276,310
Information Technology (25.3%)
Agilent Technologies, Inc. (a)		154,000		5,782,700
Apple Computer, Inc. (a)		58,500		3,669,120
Applied Materials, Inc.		90,676		1,587,737
Broadcom Corp., Class A (a)(b)		81,957		3,537,264
Cisco Systems, Inc. (a)		600,999		13,023,648
Comverse Technology, Inc. (a)(b)		154,000		3,623,620
Corning, Inc. (a)		221,000		5,947,110
EMC Corp. (a)		474,061		6,461,451
Google, Inc . (a)		10,500		4,095,000
Hewlett-Packard Co.		171,000		5,625,900
IBM Corp.		46,000		3,793,620
Marvell Technology Group, Ltd. (a)(b)		65,500		3,543,550
Microsoft Corp.		428,000		11,645,880
Motorola, Inc.		250,000		5,727,500
National Semiconductor Corp. (b)		130,622		3,636,516
Oracle Corp. (a)(b)		531,500		7,276,235
Paychex, Inc.		46,500		1,937,190
QUALCOMM, Inc.		119,801		6,063,129
				96,977,170
Materials (1.6%)
Freeport-McMoran Copper & Gold, Inc., Class B (b)		34,985		2,091,053
Phelps Dodge Corp.		50,830		4,093,340
				6,184,393
Telecommunication Services (6.4%)
America Movil SA de CV, Series L, ADR (b)		171,000		5,858,460
American Tower Corp., Class A (a)(b)		126,000		3,820,320
AT&T, Inc.		177,000		4,786,080
NII Holdings, Inc. (a)(b)		112,000		6,604,640
Sprint Nextel Corp.		142,898		3,692,484
				24,761,984
Total Common Stocks (Cost $329,465,833)				380,244,283
Repurchase Agreement (2.2%)
U.S. Bank NA, 4.55%, dated 3/31/06, maturing 4/3/06, with a maturity value of $8,407,094 (Collateralized fully by U.S. Government Agencies)	$	8,403,908		8,403,908
Total Repurchase Agreement (Cost $8,403,908)				8,403,908

Continued

11

Large Cap Growth Fund (formerly known as Large Company Growth Fund)

Schedule of Portfolio Investments, continued March 31, 2006

(Unaudited)

	Principal Amount		Fair Value
Securities Held as Collateral for Securities on Loan (29.6%)
Pool of Various Securities for BB&T Funds — Note 2 — Security Loans	$	113,502,460	$	113,502,460
Total Securities Held as Collateral for Securities on Loan (Cost $113,502,460)				113,502,460
Total Investments (Cost $451,372,201) — 130.8%				502,150,651
Net other assets (liabilities) — (30.8)%				(118,145,083	)
Net Assets — 100.0%			$	384,005,568

See page 47 for footnote legend to the Schedules of Portfolio Investments.

See accompanying notes to the financial statements.

12

Mid Cap Value Fund

Schedule of Portfolio Investments March 31, 2006

(Unaudited)

	Shares	Fair Value
Common Stocks (96.0%)
Advertising (2.0%)
Interpublic Group of Cos., Inc. (a)(b)	465,900	$	4,454,004
Computer Software (8.2%)
BMC Software, Inc. (a)(b)	220,000		4,765,200
Computer Sciences Corp. (a)	125,400		6,965,970
CSG Systems International, Inc. (a)	183,900		4,277,514
Unisys Corp. (a)	347,100		2,391,519
			18,400,203
Consumer Discretionary (11.6%)
Big Lots, Inc. (a)(b)	243,400		3,397,864
Gannett Co., Inc.	88,900		5,326,888
Kohl’s Corp. (a)(b)	146,000		7,739,460
Lexmark International, Inc. (a)(b)	113,500		5,150,630
Speedway Motorsports, Inc.	110,100		4,206,921
			25,821,763
Energy (4.4%)
Alliant Energy Corp.	177,000		5,570,190
Forest Oil Corp. (a)	114,200		4,245,956
			9,816,146
Financials (33.7%)
Aon Corp. (b)	149,550		6,207,821
Assurant, Inc.	74,200		3,654,350
Cincinnati Financial Corp.	157,300		6,617,611
Endurance Specialty Holdings, Ltd.	138,945		4,522,660
Fidelity National Financial, Inc.	122,100		4,338,213
Hudson City Bancorp, Inc.	102,600		1,363,554
Huntington Bancshares, Inc.	127,800		3,083,814
KeyCorp (b)	124,300		4,574,240
Leucadia National Corp. (b)	159,900		9,539,633
MBIA, Inc. (b)	71,400		4,293,282
Mercury General Corp. (b)	117,500		6,450,750
MoneyGram International, Inc.	164,350		5,048,832
Protective Life Corp.	72,200		3,591,228
StanCorp Financial Group, Inc.	96,200		5,205,382
Waddell and Reed Financial, Inc.	196,900		4,548,390
Washington Federal, Inc.	90,600		2,192,520
			75,232,280
Health Care (8.0%)
King Pharmaceuticals, Inc. (a)(b)	198,900		3,431,025
Mylan Laboratories, Inc.	100,000		2,340,000
QLT, Inc. (a)(b)	356,000		2,737,640
STERIS Corp.	133,900		3,304,652
Viad Corp.	85,500		2,930,940

	Shares or Principal Amount		Fair Value
Common Stocks, continued
Health Care, continued
Watson Pharmaceuticals, Inc. (a)(b)		111,800	$	3,213,132
				17,957,389
Industrials (16.9%)
Crane Co. (b)		139,900		5,737,299
Delta Pine & Land Co. (b)		177,200		5,344,352
Lear Corp. (b)		179,500		3,182,535
Leggett & Platt, Inc.		318,725		7,767,328
R.H. Donnelley Corp. (a)		125,500		7,307,865
SPX Corp. (b)		62,500		3,338,750
Valspar Corp.		180,800		5,038,896
				37,717,025
Information Technology (5.5%)
Polycom, Inc. (a)		173,000		3,750,640
Serono SA, ADR (b)		207,050		3,604,741
Synopsys, Inc. (a)		218,900		4,892,415
				12,247,796
Telecommunication Services (5.7%)
Clear Channel Communications, Inc.(b)		216,850		6,290,819
Discovery Holding Co., Class A (a)(b)		429,400		6,441,000
				12,731,819
Total Common Stocks (Cost $197,200,083)				214,378,425
Repurchase Agreement (4.6%)
U.S. Bank NA, 4.55%, dated 3/31/06, maturing 4/3/06, with a maturity value of $10,284,720 (Collateralized fully by U.S. Government Agencies)	$	10,280,821		10,280,821
Total Repurchase Agreement (Cost $10,280,821)				10,280,821
Securities Held as Collateral for Securities on Loan (24.3%)
Pool of Various Securities for BB&T Funds — Note 2 — Security Loans		54,206,019		54,206,019
Total Securities Held as Collateral for Securities on Loan (Cost $54,206,019)				54,206,019
Total Investments (Cost $261,686,923) — 124.9%				278,865,265
Net other assets (liabilities) — (24.9)%				(55,649,319	)
Net Assets — 100.0%			$	223,215,946

See page 47 for footnote legend to the Schedules of Portfolio Investments.

See accompanying notes to the financial statements.

13

Mid Cap Growth Fund

Schedule of Portfolio Investments March 31, 2006

(Unaudited)

	Shares	Fair Value
Common Stocks (97.8%)
Consumer Discretionary (12.0%)
Abercrombie & Fitch Co., Class A	28,000	$	1,632,400
Advance Auto Parts, Inc.	44,550		1,855,062
AnnTaylor Stores Corp. (a)	45,000		1,655,550
Carter’s, Inc. (a)	36,000		2,429,640
Chico’s FAS, Inc. (a)(b)	50,000		2,032,000
Circuit City Stores, Inc. (b)	94,000		2,301,120
Coach, Inc. (a)	56,000		1,936,480
GameStop Corp., Class A (a)(b)	44,000		2,074,160
Harman International Industries, Inc. (b)	14,500		1,611,385
Urban Outfitters, Inc. (a)(b)	85,000		2,085,900
			19,613,697
Energy (11.7%)
Arch Coal, Inc. (b)	24,000		1,822,560
Cameco Corp. (b)	77,000		2,772,000
Cooper Cameron Corp. (a)(b)	50,000		2,204,000
Grant Prideco, Inc. (a)	52,000		2,227,680
Helix Energy Solutions Group, Inc. (a)(b)	48,000		1,819,200
Holly Corp.	28,000		2,075,360
Peabody Energy Corp. (b)	46,000		2,318,860
Rowan Cos., Inc. (b)	41,000		1,802,360
Weatherford International, Ltd. (a)	45,500		2,081,625
XTO Energy, Inc.	1		44
			19,123,689
Financials (14.6%)
Affiliated Managers Group, Inc. (a)(b)	35,000		3,731,350
Bancolombia SA, ADR	58,000		2,024,200
Bear Stearns Cos., Inc. (The)	12,000		1,664,400
Chicago Mercantile Exchange Holdings, Inc. (b)	7,500		3,356,250
Host Marriott Corp. (b)	77,000		1,647,800
Janus Capital Group, Inc. (b)	107,000		2,479,190
Legg Mason, Inc.	21,500		2,694,595
Nasdaq Stock Market, Inc. (a)(b)	50,000		2,002,000
optionsXpress Holdings, Inc.	72,000		2,093,760
TD Ameritrade Holding Corp.	104,500		2,180,915
			23,874,460
Health Care (12.2%)
Aetna, Inc. (b)	47,000		2,309,580
Caremark Rx, Inc. (a)(b)	45,000		2,213,100
Celgene Corp. (a)(b)	98,000		4,333,560
Covance, Inc. (a)	44,000		2,585,000
Genzyme Corp. (a)	20,000		1,344,400
Humana, Inc. (a)(b)	31,000		1,632,150
Omnicare, Inc. (b)	28,000		1,539,720
ResMed, Inc. (a)(b)	57,500		2,528,850
Varian Medical Systems, Inc. (a)(b)	26,500		1,488,240
			19,974,600
Industrials (15.0%)
Gol-Linhas Aereas Inteligentes, ADR (b)	98,000		2,626,400
JLG Industries, Inc. (b)	110,000		3,386,900
Joy Global, Inc.	66,000		3,944,820
Manitowoc Company, Inc. (b)	26,000		2,369,900
Monster Worldwide, Inc. (a)(b)	60,000		2,991,600
Precision Castparts Corp.	48,000		2,851,200
Rockwell Automation, Inc. (b)	34,500		2,480,895
Trinity Industries, Inc. (b)	44,000		2,393,160

	Shares or Principal Amount		Fair Value
Common Stocks, continued
Industrials, continued
UTI Worldwide, Inc.		50,500	$	1,595,800
				24,640,675
Information Technology (23.7%)
ADC Telecommunications, Inc. (a)(b)		85,000		2,175,150
Advanced Micro Devices, Inc. (a)(b)		45,000		1,492,200
Amphenol Corp., Class A		43,000		2,243,740
Broadcom Corp., Class A (a)		57,000		2,460,120
CNET Networks, Inc. (a)(b)		116,000		1,648,360
Cognizant Technology Solutions Corp., Class A (a)		44,000		2,617,560
Comverse Technology, Inc. (a)(b)		70,000		1,647,100
F5 Networks, Inc. (a)(b)		41,000		2,972,090
Foundry Networks, Inc. (a)(b)		162,000		2,941,920
Harris Corp. (b)		55,500		2,624,595
Intersil Corp., Class A (b)		117,000		3,383,640
Jabil Circuit, Inc. (a)		71,000		3,043,060
Marvell Technology Group, Ltd. (a)(b)		44,000		2,380,400
MEMC Electronic Materials, Inc. (a)(b)		102,000		3,765,839
PMC-Sierra, Inc. (a)(b)		160,000		1,966,400
SunPower Corp., Class A (a)(b)		41,000		1,564,560
				38,926,734
Materials (3.1%)
Airgas, Inc.		70,000		2,736,300
Phelps Dodge Corp.		10,000		805,300
Titanium Metals Corp. (a)		33,000		1,602,150
				5,143,750
Telecommunication Services (5.5%)
American Tower Corp., Class A (a)(b)		161,000		4,881,520
NII Holdings, Inc. (a)(b)		70,000		4,127,900
				9,009,420
Total Common Stocks (Cost $112,963,094)				160,307,025
Exchange Traded Funds (1.0%)
iShares Russell Midcap Growth Index Fund (b)		16,000		1,617,600
Total Exchange Traded Funds (Cost $1,599,798)				1,617,600
Repurchase Agreement (2.8%)
U.S. Bank NA, 4.55%, dated 3/31/06, maturing 4/3/06, with a maturity value of $4,561,731 (Collateralized fully by U.S. Government Agencies)	$	4,560,002		4,560,002
Total Repurchase Agreement (Cost $4,560,002)				4,560,002
Securities Held as Collateral for Securities on Loan (49.3%)
Pool of Various Securities for BB&T Funds — Note 2 — Security Loans		80,855,263		80,855,263
Total Securities Held as Collateral for Securities on Loan (Cost $80,855,263)				80,855,263
Total Investments (Cost $199,978,157) — 150.9%				247,339,890
Net other assets (liabilities) — (50.9)%				(83,431,443	)
Net Assets — 100.0%			$	163,908,447

See page 47 for footnote legend to the Schedules of Portfolio Investments.

See accompanying notes to the financial statements.

14

Small Cap Fund (formerly known as Small Company Value Fund)

Schedule of Portfolio Investments March 31, 2006

(Unaudited)

	Shares	Fair Value
Common Stocks (79.9%)
Consumer Discretionary (12.8%)
bebe stores, inc.	34,705	$	639,266
BorgWarner, Inc. (b)	12,220		733,689
CEC Entertainment, Inc. (a)(b)	29,687		998,077
Charlotte Russe Holding, Inc. (a)	38,500		823,900
Deb Shops, Inc.	24,684		733,115
Emmis Communication Corp., Class A (a)	74,300		1,188,800
Hartmarx Corp. (a)	195,000		1,737,451
Kellwood Co. (b)	47,800		1,500,442
Lone Star Steakhouse & Saloon, Inc.	12,200		346,724
M.D.C. Holdings, Inc. (b)	10,310		663,036
Michaels Stores, Inc.	4,554		171,139
Nautilus, Inc. (b)	92,896		1,388,795
Payless ShoeSource, Inc. (a)	7,200		164,808
Polaris Industries, Inc. (b)	18,416		1,004,777
Stanley Furniture Co., Inc.	44,373		1,297,910
Steak n Shake Co. (The) (a)	42,400		894,640
Strattec Security Corp. (a)	12,407		462,657
Talbots, Inc. (The)	19,583		526,195
Thomas Nelson, Inc.	29,400		859,950
Zale Corp. (a)	11,896		333,445
			16,468,816
Consumer Staples (1.3%)
Inter Parfums, Inc. (b)	52,100		1,038,353
Nutraceutical International Corp. (a)	5,080		76,556
Sanderson Farms, Inc. (b)	26,600		595,840
			1,710,749
Energy (7.1%)
Berry Petroleum Co., Class A	7,768		531,720
Cabot Oil & Gas Corp.	7,366		353,052
Energy Partners, Ltd. (a)(b)	75,100		1,770,858
Forest Oil Corp. (a)	25,706		955,749
Mariner Energy, Inc. (a)	8,907		182,683
Newfield Exploration Co. (a)(b)	5,750		240,925
Oceaneering International, Inc. (a)	19,612		1,123,768
Oil States International, Inc. (a)	41,119		1,515,235
Pioneer Drilling Co. (a)	90,700		1,490,201
Teekay Shipping Corp.	26,832		994,662
			9,158,853
Financials (14.6%)
AmerUs Group Co.	18,948		1,141,428
Assured Guaranty, Ltd.	35,800		895,000
BRE Properties, Inc., Class A, REIT (b)	10,270		575,120
CNA Surety Corp. (a)	83,240		1,392,605
Colonial BancGroup, Inc. (b)	40,260		1,006,500
Dime Community Bancshares	77,532		1,114,135
Downey Financial Corp.	5,680		382,264
First State Bancorp	23,324		619,485
FirstFed Financial Corp. (a)(b)	5,649		337,867
Getty Realty Corp.	9,870		287,217
Heritage Property Investment Trust, REIT	13,480		533,673
Hilb, Rogal & Hobbs Co.	23,692		976,584
Hub International, Ltd.	24,676		691,422
InnKeepers USA Trust, REIT	68,492		1,160,939
Investment Technology Group, Inc. (a)	13,710		682,758
Midland Co. (The)	17,542		613,619
NewAlliance Bancshares, Inc.	102,806		1,483,490

	Shares	Fair Value
Common Stocks, continued
Financials, continued
Peoples Bancorp, Inc.	24,834	$	745,020
Phoenix Cos., Inc. (The) (b)	76,680		1,249,884
Protective Life Corp.	10,982		546,245
Triad Guaranty, Inc. (a)(b)	25,520		1,196,888
Wintrust Financial Corp.	19,475		1,132,861
			18,765,004
Health Care (4.8%)
Allied Healthcare International, Inc. (a)	87,300		423,405
American Medical Systems Holdings, Inc. (a)	68,700		1,545,750
Greatbatch, Inc. (a)	66,300		1,452,633
Invacare Corp.	8,104		251,710
Owens & Minor, Inc.	13,843		453,635
Pediatrix Medical Group, Inc. (a)	4,684		480,766
Sierra Health Services, Inc. (a)(b)	6,210		252,747
West Pharmaceutical Services, Inc.	38,400		1,333,248
			6,193,894
Industrials (17.0%)
Briggs & Stratton Corp. (b)	50,624		1,790,570
Curtiss-Wright Corp.	21,240		1,406,088
EMCOR Group, Inc. (a)	18,504		918,909
Esterline Technologies Corp. (a)	37,900		1,620,225
Gardner Denver, Inc. (a)	20,240		1,319,648
Genlyte Group, Inc. (a)	15,440		1,052,082
Gorman-Rupp Co.	43,263		1,055,617
Granite Construction, Inc. (b)	23,460		1,142,033
Kaydon Corp. (b)	37,855		1,527,828
LaBarge, Inc. (a)	114,200		1,707,289
Moog, Inc., Class A (a)	37,600		1,334,424
Mueller Industries, Inc. (b)	26,735		954,172
Oshkosh Truck Corp. (b)	17,540		1,091,690
Regal-Beloit Corp. (b)	35,438		1,497,964
Universal Forest Products, Inc.	18,984		1,205,294
Watson Wyatt Worldwide, Inc., Class A (b)	27,300		889,434
Woodward Governor Co.	36,440		1,211,630
			21,724,897
Information Technology (15.6%)
Avocent Corp (a)	51,100		1,621,914
Commscope, Inc. (a)(b)	26,700		762,285
Exar Corp. (a)(b)	129,059		1,842,963
Imation Corp.	50,455		2,165,024
Intersil Corp., Class A (b)	13,630		394,180
Ixia (a)(b)	56,000		798,560
KEMET Corp. (a)(b)	81,588		772,638
Kronos, Inc. (a)	46,000		1,719,940
M-Systems Flash Disk Pioneers Ltd. (a)	24,500		633,570
Perot Systems Corp., Class A (a)	122,600		1,907,656
Richardson Electronics, Ltd.	115,283		1,083,660
Rimage Corp. (a)	35,685		805,767
SBS Technologies, Inc. (a)	40,338		653,476
TNS, Inc. (a)	121,900		2,581,842
Varian Semiconductor Equipment Associates, Inc. (a)	25,500		716,040
ViaSat, Inc. (a)	20,000		573,000
WebSideStory, Inc. (a)(b)	59,000		1,014,210
			20,046,725

Continued

15

Small Cap Fund (formerly known as Small Company Value Fund)

Schedule of Portfolio Investments, continued March 31, 2006

(Unaudited)

	Shares	Fair Value
Common Stocks, continued
Materials (4.0%)
Gibraltar Industries, Inc.	41,327	$	1,217,493
Glatfelter	54,745		1,003,476
IAMGOLD Corp.	60,000		517,800
Minerals Technologies, Inc. (b)	22,515		1,315,101
Sensient Technologies Corp.	17,600		317,680
Spartech Corp.	32,740		785,760
			5,157,310
Telecommunication Services (0.6%)
j2 Global Communications, Inc. (a)(b)	16,700		784,900
Utilities (2.1%)
AGL Resources, Inc.	16,510		595,186
Empire District Electric Co. (The) (b)	29,760		661,266
Laclede Group, Inc. (The)	14,368		494,548
Nicor, Inc. (b)	9,230		365,139
UIL Holdings Corp.	11,866		621,185
			2,737,324
Total Common Stocks (Cost $81,588,491)			102,748,472
Exchange Traded Funds (12.4%)
iShares Russell 2000 Growth Index Fund (b)	10,600		844,078
iShares Russell 2000 Index Fund (a)(b)	178,400		13,540,560
iShares Small Cap 600 Index Fund (b)	11,600		756,088
iShares Small Cap 600/BARRA Growth Index Fund (b)	5,800		750,868
Total Exchange Traded Funds (Cost $15,024,739)			15,891,594

	Principal Amount		Fair Value
Corporate Bonds (0.1%)
Industrials (0.1%)
Mueller Industries, Inc., 6.00%, 11/1/14	$	175,000	$	164,500
Total Corporate Bonds (Cost $175,000)				164,500
Repurchase Agreement (8.3%)
U.S. Bank NA, 4.55%, dated 3/31/06, maturing 4/3/06, with a maturity value of $10,701,177 (Collateralized fully by U.S. Government Agencies)		10,697,121		10,697,121
Total Repurchase Agreement (Cost $10,697,121)				10,697,121
Securities Held as Collateral for Securities on Loan (25.6%)
Pool of Various Securities for BB&T Funds — Note 2 — Security Loans		32,946,276		32,946,276
Total Securities Held as Collateral for Securities on Loan (Cost $32,946,276)				32,946,276
Total Investments (Cost $140,431,627) — 126.3%				162,447,963
Net other assets (liabilities) — (26.3)%				(33,797,424	)
Net Assets — 100.0%			$	128,650,539

See page 47 for footnote legend to the Schedules of Portfolio Investments.

See accompanying notes to the financial statements.

16

International Equity Fund

Schedule of Portfolio Investments March 31, 2006

(Unaudited)

	Shares	Fair Value
Common Stocks (98.4%)
Australia (2.8%)
Banks (0.8%)
National Australia Bank, Ltd.	80,749	$	2,178,766
Property & Causulty Insurance (1.3%)
QBE Insurance Group, Ltd.	206,122		3,227,779
Transportation (0.7%)
Qantas Airways, Ltd.	754,646		1,911,959
			7,318,504
Austria (0.5%)
Telecommunications (0.5%)
Telekom Austria AG	50,402		1,187,848
Belgium (2.3%)
Banking & Insurance Services (1.9%)
Fortis	53,027		1,894,166
KBC Groupe SA	29,119		3,126,105
			5,020,271
Chemicals (0.4%)
Solvay SA	9,003		1,039,617
			6,059,888
Finland (1.7%)
Paper & Related Products (1.0%)
UPM — Kymmene, Oyj	112,300		2,653,431
Telecommunications (0.7%)
Nokia, Oyi	84,700		1,752,930
			4,406,361
France (7.8%)
Insurance (1.7%)
Axa	125,671		4,409,883
Oil & Gas (2.3%)
Total SA	23,403		6,173,385
Pharmaceuticals (1.9%)
Sanofi-Aventis SA	52,778		5,020,142
Real Estate (0.4%)
Unibail	5,624		1,015,372
Telecommunications (1.5%)
France Telecom SA	169,500		3,811,896
			20,430,678
Germany (8.2%)
Automobiles & Trucks (0.5%)
Bayerische Motoren Werke AG	25,855		1,425,441
Banking & Finance (1.1%)
Deutsche Postbank AG	40,030		2,905,884
Diversified Products (0.5%)
Siemens AG	14,923		1,391,058
Electric Utilities (1.4%)
E.On AG	34,025		3,745,558
Insurance (0.2%)
Hannover Rueckversicherungs AG	17,466		650,142
Insurance-Multi-Line (2.1%)
Allianz AG	31,340		5,238,208
Manufacturing (0.9%)
Man AG	32,666		2,271,963

	Shares	Fair Value
Common Stocks, continued
Germany, continued
Pharmaceuticals (0.8%)
Schering AG	18,981	$	1,972,870
Retail (0.6%)
Metro AG	29,817		1,531,152
Telecommunications (0.1%)
Premiere AG (a)	19,316		344,055
			21,476,331
Great Britain (21.9%)
Advertising/Marketing (0.5%)
WPP Group PLC	102,906		1,234,393
Banks (4.9%)
Barclays PLC	547,640		6,407,399
Royal Bank of Scotland Group PLC	190,587		6,201,262
			12,608,661
Beverages — Wine & Spirits (1.5%)
Diageo PLC	251,301		3,957,410
Building & Construction (0.3%)
Balfour Beatty PLC	101,793		657,824
Distribution/Wholesale (0.9%)
Wolseley PLC	96,841		2,378,799
Diversified Operations/Commercial (0.2%)
Rentokil Initial PLC	212,858		576,851
Electric — Distribution (0.5%)
Scottish & Southern Energy PLC	68,486		1,346,782
Financial Services (0.4%)
Collins Stewart Tullett	88,151		1,114,062
Gas & Electric Utility (0.1%)
Centrica PLC	57,684		282,087
Insurance (1.8%)
Prudential Corp. PLC	410,408		4,759,005
Media (0.2%)
ITV PLC	284,224		588,801
Oil & Gas (2.9%)
BP PLC	637,584		7,321,295
Pharmaceuticals (0.5%)
AstraZeneca PLC	27,316		1,376,145
Research & Development (0.4%)
Taylor Nelson Sofres PLC	265,629		1,165,161
Retail — Apparel (0.5%)
GUS PLC	68,962		1,263,896
Retail — Building (0.7%)
Kingfisher PLC	464,504		1,932,609
Retail — Consumer Electronics (0.4%)
Kesa Electricals PLC	214,073		1,160,287
Retail — Food (1.6%)
Tesco PLC	714,026		4,093,332
Telecommunications (2.7%)
Vodafone Group PLC	3,383,915		7,083,624
Tobacco (0.9%)
Gallaher Group PLC	167,192		2,439,742
			57,340,766

Continued

17

International Equity Fund

Schedule of Portfolio Investments, continued March 31, 2006

(Unaudited)

	Shares	Fair Value
Common Stocks, continued
Hong Kong (1.7%)
Manufacturing — Consumer Goods (0.3%)
Yue Yuen Industrial Holdings, Ltd.	254,000	$	748,031
Real Estate (0.5%)
Sun Hung Kai Properties, Ltd.	117,000		1,188,261
Retail — Diversified (0.4%)
Esprit Asia Holdings, Ltd.	157,500		1,226,076
Telecommunications (0.5%)
Hutchison Telecommunications (a)	691,000		1,180,032
			4,342,400
Ireland (2.4%)
Banking & Finance (1.6%)
Bank of Ireland	215,874		4,015,153
Depfa Bank PLC	16,651		296,586
			4,311,739
Building & Construction (0.8%)
CRH PLC	56,847		1,983,780
			6,295,519
Italy (2.2%)
Banking & Finance (1.4%)
UniCredito Italiano S.p.A.	516,905		3,736,066
Oil & Gas (0.8%)
Eni S.p.A.	72,205		2,054,276
			5,790,342
Japan (22.9%)
Automobiles & Trucks (4.1%)
Honda Motor Co., Ltd.	39,000		2,415,959
Mitsubishi Corp.	121,300		2,762,441
Nissan Motors Co., Inc.	243,300		2,890,325
Toyota Motor Corp.	54,500		2,977,863
			11,046,588
Banks (3.3%)
Bank of Yokohama, Ltd. (The)	214,000		1,753,025
Sumitomo Mitsui Financial Group, Inc.	320		3,535,011
Sumitomo Trust & Banking Co., Ltd.	174,000		2,013,835
Takefuji Corp.	24,420		1,537,663
			8,839,534
Brewery (0.7%)
Asahi Breweries, Ltd.	122,000		1,731,305
Building — Residential/Commercial (0.5%)
Sekisui House, Ltd.	84,000		1,253,433
Diversified Chemicals (2.1%)
Nitto Denko Corp.	37,400		3,174,933
Shin-Etsu Chemical Co., Ltd.	48,100		2,611,820
			5,786,753
Diversified Financials (0.6%)
Nomura Holdings, Inc.	71,100		1,585,975
Electric Products (1.0%)
Funai Electric Co., Ltd.	10,300		1,018,797
Yokogawa Electric Corp.	93,300		1,660,974
			2,679,771

	Shares	Fair Value
Common Stocks, continued
Japan, continued
Electronic Components (1.3%)
Murata Manufacturing Co., Ltd.	12,400	$	839,803
Rohm Co., Ltd.	24,600		2,602,566
			3,442,369
Finance Services (0.5%)
Aiful Corp.	19,100		1,264,352
Industrial (0.7%)
East Japan Railway Co.	244		1,808,022
Insurance (1.0%)
Mitsui Sumitomo Insurance Co., Ltd.	191,000		2,598,496
Manufacturing (0.5%)
NTN Corp.	156,000		1,236,812
Manufacturing-Diversified (0.5%)
NOK Corp.	44,400		1,196,023
Office Equipment (1.3%)
Canon, Inc.	49,700		3,289,964
Oil & Gas (0.6%)
Tokyo Gas Co., Ltd.	372,000		1,627,974
Property & Causulty Insurance (0.5%)
Sompo Japan Insurance, Inc.	86,000		1,247,468
Real Estate (0.7%)
Mitsui Fudosan Co., Ltd.	82,000		1,884,857
Retail (0.7%)
AEON Co., Ltd.	71,300		1,729,788
Retail — Automobile (0.7%)
Bridgestone Corp.	93,000		1,940,134
Telecommunications (1.2%)
KDDI Corp.	157		839,166
NTT DoCoMo, Inc.	1,491		2,204,571
			3,043,737
Tobacco (0.4%)
Japan Tobacco, Inc.	335		1,178,535
			60,411,890
Netherlands (8.5%)
Air Freight & Logistics (1.1%)
TPG NV	79,858		2,764,535
Banking & Finance (3.5%)
ABN AMRO Holding NV	307,294		9,211,858
Electronic Equipment (0.8%)
ASML Holding NV (a)	99,451		2,030,498
Electronics (0.7%)
Koninklijke (Royal) Philips Electronics NV	51,939		1,755,236
Multi-Line Insurance (0.8%)
Aegon NV	119,202		2,205,545
Publishing (0.9%)
Reed Elsevier NV	101,248		1,451,324
VNU NV	31,038		1,009,039
			2,460,363
Telecommunications (0.7%)
Koninklijke (Royal) KPN NV	166,800		1,879,630
			22,307,665

Continued

18

International Equity Fund

Schedule of Portfolio Investments, continued March 31, 2006

(Unaudited)

	Shares	Fair Value
Common Stocks, continued
Norway (0.9%)
Telecommunications (0.9%)
Telenor ASA	221,400	$	2,382,753
Singapore (0.1%)
Retail (0.1%)
Jardine Cycle & Carriage, Ltd.	45,000		309,192
Spain (2.9%)
Banking & Finance (2.1%)
Banco Santander Central Hispano SA	384,094		5,608,129
Petroleum (0.8%)
Repsol-YPF SA	71,577		2,032,940
			7,641,069
Sweden (1.9%)
Appliances (0.8%)
Electrolux AB, Class B	65,400		1,877,596
Building Materials (0.6%)
Sandvik AB	28,700		1,697,690
Telecommunications (0.5%)
Telefonaktiebolaget LM Ericsson, B Shares	342,000		1,300,364
			4,875,650
Switzerland (9.7%)
Banks (2.8%)
Credit Suisse Group	134,080		7,525,475
Biotechnology (0.5%)
Straumann Holding AG	5,202		1,185,448

	Shares	Fair Value
Common Stocks, continued
Switzerland, continued
Building Materials (0.7%)
Holcim, Ltd.	21,556	$	1,716,806
Commercial Services & Supplies (0.5%)
Adecco SA	22,039		1,231,905
Food Products (0.9%)
Nestle SA	8,150		2,420,049
Insurance (1.3%)
Swiss Re	47,960		3,352,379
Pharmaceuticals (3.0%)
Actelion, Ltd. (a)	12,875		1,279,301
Novartis AG	58,748		3,268,035
Roche Holding AG	23,422		3,488,229
			8,035,565
			25,467,627
Total Common Stocks (Cost $193,691,138)			258,044,483
Exchange Traded Funds (1.3%)
United States (1.3%)
iShares MSCI EAFE Index	51,000		3,316,020
Total Exchange Traded Funds (Cost $3,163,020)			3,316,020
Total Investments (Cost $196,854,158) — 99.7%			261,360,503
Net other assets (liabilities) — 0.3%			748,471
Net Assets — 100.0%		$	262,108,974

Currency	Delivery Date	Contract Amount in Local Currency	Contract Value in USD		Fair Value		Unrealized Appreciation (Depreciation)
Short
British Sterling Pound vs. U.S. Dollar	05/26/06	£1,485,000	$	2,576,534	$	2,577,214	$	(680	)
British Sterling Pound vs. U.S. Dollar	05/26/06	815,000		1,421,882		1,406,295		15,587
British Sterling Pound vs. U.S. Dollar	05/26/06	850,000		1,482,485		1,494,614		(12,129	)
British Sterling Pound vs. U.S. Dollar	05/26/06	1,775,000		3,109,045		3,113,976		(4,931	)
British Sterling Pound vs. U.S. Dollar	05/26/06	770,000		1,338,106		1,332,987		5,119
Total Short Contracts			$	9,928,052	$	9,925,086	$	2,966
Long
British Sterling Pound vs. U.S. Dollar	05/26/06	£1,480,000	$	2,573,454	$	2,578,333	$	4,879
British Sterling Pound vs. U.S. Dollar	05/26/06	820,000		1,409,867		1,433,322		23,455
British Sterling Pound vs. U.S. Dollar	05/26/06	850,000		1,489,736		1,489,304		(432	)
Total Long Contracts			$	5,473,057	$	5,500,959	$	27,902

See page 47 for footnote legend to the Schedules of Portfolio Investments.

See accompanying notes to the financial statements.

19

Special Opportunities Equity Fund

Schedule of Portfolio Investments March 31, 2006

(Unaudited)

	Shares	Fair Value
Common Stocks (86.4%)
Commercial Services (3.9%)
WCI Communities, Inc. (a)	272,000	$	7,567,040
Consumer Discretionary (17.7%)
Comcast Corp., Class A (a)	272,000		7,115,520
Costco Wholesale Corp.	105,200		5,697,632
News Corp., Class A	428,000		7,109,080
Smithfield Foods, Inc. (a)	271,000		7,951,140
YUM! Brands, Inc.	131,900		6,444,634
			34,318,006
Energy (15.9%)
Apache Corp.	115,000		7,533,650
CONSOL Energy, Inc.	119,900		8,891,784
Pioneer Natural Resources Co.	138,500		6,128,625
Weatherford International, Ltd. (a)	180,000		8,235,000
			30,789,059
Financials (9.0%)
Markel Corp. (a)	14,600		4,930,128
MBIA, Inc.	84,800		5,099,024
Wells Fargo & Co.	117,500		7,504,725
			17,533,877
Health Care (21.1%)
Bard (C.R.), Inc.	95,000		6,441,950
Emdeon Corp. (a)	689,000		7,441,201
Kos Pharmaceuticals, Inc. (a)	146,055		6,977,047
Laboratory Corporation of America Holdings (a)	101,500		5,935,720
Manor Care, Inc.	156,000		6,918,600
MedCath Corp. (a)	362,000		6,921,440
			40,635,958

	Shares or Principal Amount		Fair Value
Common Stocks, continued
Industrials (8.0%)
L-3 Communications Holdings, Inc.		91,000	$	7,806,890
PACCAR, Inc.		109,800		7,738,704
				15,545,594
Information Technology (10.8%)
Activision, Inc. (a)		289,366		3,990,357
ATI Technologies, Inc. (a)		274,500		4,715,910
Fair Issac Corp.		121,965		4,832,253
Symantec Corp. (a)		444,000		7,472,520
				21,011,040
Total Common Stocks (Cost $135,696,649)				167,400,574
Investment Companies (0.3%)
Morgan Stanley Quality Municipal Income Trust		35,800		520,532
Van Kampen Trust for Investment Grade Municipals		10,000		147,800
Total Investment Companies (Cost $612,642)				668,332
Repurchase Agreement (13.2%)
U.S. Bank NA, 4.55%, dated 3/31/06, maturing 4/3/06, with a maturity value of $25,637,206 (Collateralized fully by U.S. Government Agencies)	$	25,627,489		25,627,489
Total Repurchase Agreement (Cost $25,627,489)				25,627,489
Total Investments (Cost $161,936,780) — 99.9%				193,696,395
Net other assets (liabilities) — 0.1%				137,869
Net Assets — 100.0%			$	193,834,264

See page 47 for footnote legend to the Schedules of Portfolio Investments.

See accompanying notes to the financial statements.

20

Equity Income Fund

Schedule of Portfolio Investments March 31, 2006

(Unaudited)

	Shares	Fair Value
Common Stocks (93.6%)
Consumer Staples (10.6%)
Altria Group, Inc.	25,500	$	1,806,930
Diageo PLC, ADR	40,000		2,537,200
General Mills, Inc.	58,500		2,964,780
Kimberly-Clark Corp.	61,500		3,554,700
			10,863,610
Energy (16.8%)
ChevronTexaco Corp.	69,000		3,999,930
ConocoPhillips	58,000		3,662,700
Kinder Morgan, Inc.	27,000		2,483,730
Natural Resource Partners L.P.	71,970		3,798,577
Petroleo Brasileiro SA, ADR	37,000		3,206,790
			17,151,727
Financials (36.6%)
AllianceBernstein Holding L.P.	53,000		3,511,250
Cincinnati Financial Corp.	43,064		1,811,702
Citigroup, Inc.	73,885		3,490,327
Endurance Specialty Holdings, Ltd.	127,000		4,133,850
Equity Inns, Inc., REIT	223,900		3,627,180
First Industrial Realty Trust, REIT	93,500		3,991,515
Mills Corp. (The), REIT	122,000		3,416,000
North Fork Bancorporation, Inc.	100,000		2,883,000
U.S. Bancorp	99,500		3,034,750
Washington Real Estate Investment Trust, REIT	111,000		4,031,520
Weingarten Realty Investors, REIT	88,000		3,586,000
			37,517,094
Health Care (7.2%)
Abbott Laboratories	70,000		2,972,900
Pfizer, Inc.	176,000		4,385,920
			7,358,820

	Shares or Principal Amount		Fair Value
Common Stocks, continued
Industrials (3.7%)
General Electric Co.		109,000	$	3,791,020
Information Technology (4.1%)
Nokia Corp., ADR		201,500		4,175,080
Materials (3.7%)
E.I. DuPont de Nemours & Co.		89,000		3,756,690
Telecommunication Services (3.4%)
AT&T, Inc.		126,800		3,428,672
Utilities (7.5%)
Dominion Resources, Inc., Virginia		56,300		3,886,389
Pinnacle West Capital Corp.		95,500		3,734,050
				7,620,439
Total Common Stocks (Cost $83,848,831)				95,663,152
Investment Companies (0.5%)
Van Kampen Municipal Trust		9,455		137,098
Van Kampen Trust for Investment Grade Municipals		23,400		345,852
Total Investment Companies (Cost $474,362)				482,950
Repurchase Agreement (5.5%)
U.S. Bank NA, 4.55%, dated 3/31/06, maturing 4/3/06, with a maturity value of $5,661,702 (Collateralized fully by U.S. Government Agencies)	$	5,659,556		5,659,556
Total Repurchase Agreement (Cost $5,659,556)				5,659,556
Total Investments (Cost $89,982,749) — 99.6%				101,805,658
Net other assets (liabilities) — 0.4%				402,217
Net Assets — 100.0%			$	102,207,875

See page 47 for footnote legend to the Schedules of Portfolio Investments.

See accompanying notes to the financial statements.

21

Short U.S. Government Fund

Schedule of Portfolio Investments March 31, 2006

(Unaudited)

	Principal Amount		Fair Value
Mortgage-Backed Securities (24.0%)
Federal Home Loan Mortgage Corporation (13.0%)
5.00%, 12/1/08, Pool # M80714	$	623,266	$	619,553
4.50%, 12/1/09, Pool # M80791		3,632,006		3,552,900
4.50%, 1/1/10, Pool # M80792		1,951,326		1,904,442
3.50%, 1/15/10, Pool #2663		372,641		371,376
4.00%, 3/1/10, Pool # M80806		2,865,133		2,757,268
4.50%, 1/15/11, Pool #2782		2,302,162		2,285,159
6.50%, 5/1/13, Pool # E00548		299,496		305,792
2.25%, 4/15/16, Series 2613, Class BM, CMO		25,210		25,158
6.00%, 9/1/16, Pool # E01049		816,144		826,172
5.50%, 7/15/17, Series 2808, Class OK, CMO		4,750,000		4,753,613
6.00%, 4/15/18, Series 2504, Class VB, CMO		419,367		418,731
				17,820,164
Federal National Mortgage Assoc. (11.0%)
3.50%, 3/25/09, Series 2003-92, CMO		729,552		726,475
4.50%, 1/1/10, Pool # 254626		1,589,805		1,552,020
2.00%, 1/25/11, Series 2003-83, Class AP, CMO		190,777		190,163
4.50%, 9/25/12, Series 2002-82, Class XJ, CMO		889,926		886,075
6.50%, 8/1/13, Pool # 251901		682,015		698,101
6.00%, 3/1/16, Pool # 253702		528,136		535,532
6.00%, 4/1/16, Pool # 535846		507,265		514,368
6.50%, 4/1/16, Pool # 253706		846,824		867,083
6.00%, 8/1/16, Pool # 545125		359,732		364,765
5.00%, 11/1/17, Pool # 254510		1,997,823		1,953,147
5.00%, 12/1/17, Pool # 254545		2,139,358		2,091,517
4.50%, 3/1/18, Pool # 555292		3,060,004		2,931,828
2.75%, 6/25/34, Series 2004-W4, Class AI, CMO		1,772,666		1,757,245
				15,068,319
Total Mortgage-Backed Securities (Cost $33,747,873)				32,888,483
U.S. Government Agencies (51.7%)
Federal Farm Credit Bank (5.0%)
3.15%, 9/29/06		2,000,000		1,981,032
3.375%, 7/15/08		5,000,000		4,820,980
				6,802,012
Federal Home Loan Bank (12.8%)
2.875%, 9/15/06		5,000,000		4,951,600
2.50%, 4/5/07		3,000,000		2,923,356
3.625%, 11/14/08 (b)		8,000,000		7,719,968
4.625%, 2/18/11, Series 616		2,000,000		1,956,254
				17,551,178

	Principal Amount		Fair Value
U.S. Government Agencies, continued
Federal Home Loan Mortgage Corporation (17.1%)
4.875%, 3/15/07 (b)	$	3,000,000	$	2,992,638
3.75%, 8/3/07 (b)		7,000,000		6,877,576
3.30%, 9/14/07		5,000,000		4,875,005
3.25%, 2/25/08 (b)		4,000,000		3,863,944
3.50%, 4/1/08 (b)		5,000,000		4,851,950
				23,461,113
Federal National Mortgage Assoc. (16.8%)
4.75%, 1/2/07 (b)		5,000,000		4,982,975
2.625%, 1/19/07 (b)		4,000,000		3,922,496
3.875%, 5/15/07 (b)		4,000,000		3,945,896
6.625%, 10/15/07 (b)		8,000,000		8,176,768
3.875%, 7/15/08		2,000,000		1,949,446
				22,977,581
Total U.S. Government Agencies (Cost $72,370,700)				70,791,884
U.S. Treasury Notes (23.3%)
3.375%, 2/28/07 (b)		6,000,000		5,920,314
5.50%, 2/15/08		5,000,000		5,060,350
5.625%, 5/15/08 (b)		3,000,000		3,046,992
3.25%, 8/15/08 (b)		7,500,000		7,237,500
3.875%, 1/15/09		1,500,000		1,898,885
4.25%, 10/15/10 (b)		9,000,000		8,789,769
Total U.S. Treasury Notes (Cost $32,647,591)				31,953,810
Repurchase Agreement (1.3%)
U.S. Bank NA, 4.55%, dated 3/31/06, maturing 4/3/06, with a maturity value of $1,837,737 (Collateralized fully by U.S. Government Agencies)		1,837,041		1,837,041
Total Repurchase Agreement (Cost $1,837,041)				1,837,041
Securities Held as Collateral for Securities on Loan (48.7%)
Pool of Various Securities for BB&T Funds — Note 2 — Security Loans		66,686,726		66,686,726
Total Securities Held as Collateral for Securities on Loan (Cost $66,686,726)				66,686,726
Total Investments (Cost $207,289,931) — 149.0%				204,157,944
Net other assets (liabilities) — (49.0)%				(67,137,868	)
Net Assets — 100.0%			$	137,020,076

See page 47 for footnote legend to the Schedules of Portfolio Investments.

See accompanying notes to the financial statements.

22

Intermediate U.S. Government Fund

Schedule of Portfolio Investments March 31, 2006

(Unaudited)

	Principal Amount		Fair Value
Mortgage-Backed Securities (66.4%)
Federal Home Loan Mortgage Corporation (23.7%)
6.00%, 9/1/08, Pool # M80700	$	251,894	$	252,520
5.00%, 11/1/09, Pool # M80779		2,440,104		2,419,303
5.125%, 10/15/15, Series R003, Class AG		32,663,642		32,230,441
6.00%, 9/1/16, Pool # E01049		1,130,046		1,143,931
6.00%, 5/1/17, Pool # E89746		1,380,694		1,397,560
4.50%, 2/1/18, Pool # E94445		8,372,245		8,007,786
4.50%, 8/15/22, Series 2649, Class VJ, CMO		6,049,000		5,458,953
5.50%, 12/15/22, Series 2542, Class DJ, CMO		5,000,000		4,935,881
5.00%, 7/15/23, Series 2638, Class DH, CMO		2,302,000		2,184,755
7.00%, 8/15/23, Series 1644, Class L, CMO		883,781		888,980
5.50%, 2/1/29, Pool # A18613		7,800,752		7,645,822
5.00%, 10/15/32, Series 2553, Class — DJ, CMO		5,000,000		4,649,813
4.50%, 5/1/34, Pool # A21214		9,617,302		8,893,658
5.00%, 5/1/35, Pool # A35079		8,946,263		8,514,183
5.00%, 7/1/35, Pool # A46182		20,363,921		19,380,400
				108,003,986
Federal National Mortgage Assoc. (41.5%)
6.00%, 10/1/08, Pool # 254041		184,214		184,153
6.00%, 2/1/09, Pool # 254243		401,111		400,915
6.50%, 12/1/13, Pool # 555005		326,011		332,676
5.00%, 11/1/17, Pool # 254510		1,997,823		1,953,147
5.00%, 12/1/17, Pool # 254545		2,139,358		2,091,517
5.00%, 1/1/18, Pool # 650205		7,007,695		6,845,852
4.50%, 1/25/18, Series 2002-94, Class HM, CMO		8,000,000		7,424,326
4.50%, 2/1/18, Pool # 683346		3,121,550		2,985,426
4.50%, 3/1/18, Pool # 555292		6,120,007		5,863,657
6.00%, 1/1/23, Pool # 254633		2,592,601		2,608,179
6.00%, 1/1/29, Pool # 252211		654,333		655,941
5.50%, 8/1/32, Pool # 555954		1,645,652		1,626,385
5.50%, 1/1/33, Pool # 678321		2,525,861		2,471,521
5.00%, 7/1/33, Pool # 724965		3,862,368		3,687,420
5.00%, 8/1/33, Pool # 738751		1,924,959		1,837,916
5.00%, 8/1/33, Pool # 724635		1,566,576		1,494,779
5.00%, 10/1/33, Pool # 753298		1,015,786		970,036
5.50%, 1/1/34, Pool # 757571		2,781,835		2,715,767
4.50%, 9/1/34, Pool # 725866		8,886,471		8,196,845
5.50%, 1/1/35, Pool # 807988		11,070,238		10,807,320
5.50%, 3/1/35, Pool # 787561 (b)		26,077,436		25,458,096
5.50%, 5/1/35, Pool # 825530 (b)		18,411,741		17,974,462
5.50%, 6/1/35, Pool # 825533		15,476,764		15,109,191
5.50%, 9/1/35, Pool # 835787		11,467,630		11,195,274
5.50%, 11/1/35, Pool # 843868		14,922,048		14,567,649
6.00%, 11/1/35, Pool # 831087		33,614,244		33,614,243
6.00%, 1/1/36, Pool # 846765		5,992,401		5,992,401
				189,065,094

	Principal Amount		Fair Value
Mortgage-Backed Securities, continued
Government National Mortgage Assoc. (1.2%)
5.50%, 7/15/24, Pool # 631850	$	885,800	$	878,835
5.50%, 7/16/32, Series 2003-1, Class PE, CMO		5,000,000		4,802,634
				5,681,469
Total Mortgage-Backed Securities (Cost $310,744,271)				302,750,549
U.S. Government Agencies (16.7%)
Federal Farm Credit Bank (1.9%)
4.875%, 12/16/15 (b)		9,000,000		8,771,607
Federal Home Loan Bank (4.3%)
4.875%, 8/16/10 (b)		20,000,000		19,732,800
Federal Home Loan Mortgage Corp. (8.1%)
5.625%, 3/15/11 (b)		12,000,000		12,241,116
5.875%, 3/21/11 (b)		10,000,000		10,230,730
5.00%, 11/13/14, Series MTN, Callable 11/13/06 @ 100 (b)		15,000,000		14,535,750
				37,007,596
Federal National Mortgage Assoc. (1.1%)
5.125%, 1/2/14 (b)		5,000,000		4,893,410
Sovereign (1.3%)
Financing Corp., 8.60%, 9/26/19		500,000		651,275
Tennessee Valley Authority, Series A, 6.79%, 5/23/12		5,000,000		5,408,170
				6,059,445
Total U.S. Government Agencies (Cost $78,199,806)				76,464,858
U.S. Government Backed Securities (4.5%)
Banking & Financial Services (4.5%)
Private Export Funding, 4.97%, 8/15/13		4,350,000		4,265,449
Private Export Funding, 4.55%, 5/15/15		10,000,000		9,498,290
Private Export Funding, 4.95%, 11/15/15		7,000,000		6,861,400
Total U.S. Government Backed Securities (Cost $21,654,891)				20,625,139
U.S. Treasury Bonds & Notes (11.3%)
6.50%, 2/15/10 (b)		25,000,000		26,448,250
4.00%, 2/15/15 (b)		27,000,000		25,302,996
Total U.S. Treasury Bonds & Notes (Cost $52,897,261)				51,751,246
Repurchase Agreement (0.9%)
U.S. Bank NA, 4.55%, dated 3/31/06, maturing 4/3/06, with a maturity value of $3,984,425 (Collateralized fully by U.S. Government Agencies)		3,982,915		3,982,915
Total Repurchase Agreement (Cost $3,982,915)				3,982,915

Continued

23

Intermediate U.S. Government Fund

Schedule of Portfolio Investments, continued March 31, 2006

(Unaudited)

	Principal Amount		Fair Value
Securities Held as Collateral for Securities on Loan (34.0%)
Pool of Various Securities for BB&T Funds — Note 2 — Security Loans	$	155,213,593	$	155,213,593
Total Securities Held as Collateral for Securities on Loan (Cost $155,213,593)				155,213,593
Total Investments (Cost $622,692,737) — 133.8%				610,788,300
Net other assets (liabilities) — (33.8)%				(154,143,218	)
Net Assets — 100.0%			$	456,645,082

See page 47 for footnote legend to the Schedules of Portfolio Investments.

See accompanying notes to the financial statements.

24

Total Return Bond Fund

Schedule of Portfolio Investments March 31, 2006

(Unaudited)

	Principal Amount		Fair Value
Corporate Bonds (43.1%)
Aerospace & Defense (0.4%)
Raytheon Co., 6.15%, 11/1/08	$	2,065,000	$	2,104,464
Airlines (0.8%)
Southwest Airlines Co., 5.25%, 10/1/14		4,310,000		4,126,252
Auto — Cars/Light Trucks (0.5%)
DaimlerChrysler NA Holdings, 4.875%, 6/15/10		2,730,000		2,631,043
Banking & Financial Services (32.3%)
Accredited Mortgage Loan Trust, Series 2005-4, Class A2B, 4.97%, 12/25/35 (d)*		3,000,000		2,999,974
American Express Credit Account Master Trust, 4.75%, 3/15/11 (d)*		1,750,000		1,748,610
Associates Corp. NA, 6.25%, 11/1/08 (b)		2,627,000		2,686,906
Bank of America Commercial Mortgage, Inc., Series 2004-6, Class A5, 4.81%, 12/10/42		2,693,000		2,554,056
Bank of America Corp., 4.25%, 10/1/10		915,000		873,335
Bank of America Corp., 5.37%, 9/10/45		4,930,000		4,849,957
Boeing Capital Corp., 7.375%, 9/27/10		4,350,000		4,685,881
Chase Funding Mortgage Loan Asset-Backed, Series 2003-4, Class 1A5, 5.42%, 5/25/33		7,655,000		7,564,563
Chase Issuance Trust, Series 2005-A1, Class A1, 4.76%, 12/15/10 (d)*		4,600,000		4,600,374
CIT Group, Inc., 5.00%, 2/13/14		1,988,000		1,886,841
CIT Group, Inc., Series MTN, 5.16%, 9/20/07*		4,050,000		4,062,960
Countrywide Asset-Backed Certificates, Series 2004-3, Class 3A3, 5.20%, 8/25/34 (d)*		11,510,000		11,537,167
Countrywide Asset-Backed Certificates, Series 2005-4, Class 3AV2, 5.03%, 10/25/35 (d)*		6,038,000		6,036,552
Credit-Based Asset Servicing and Securitization, Series 2005-CB5, Class AF2, 4.83%, 8/25/35		6,000,000		5,884,363
CS First Boston Mortgage Securities Corp., Series 2004-C1, Class A2, 3.52%, 1/15/37		5,650,000		5,421,793
First Horizon ABS Trust, Series 2004-HE2, Class A, 5.04%, 2/25/34*		192,669		192,779
Gatx Financial Corp., 5.125%, 4/15/10		5,209,000		5,076,702
GE Capital Commercial Mortgage Corp., Series 2004-C1, Class A2, 3.915%, 11/10/38		8,040,000		7,658,004
General Electric Capital Corp., Series MTNA, 4.99%, 6/22/07*		2,300,000		2,302,392
General Electric Capital Corp., Series MTNA, 4.76%, 7/28/08*		2,095,000		2,098,645
General Motors Acceptance Corp., 6.75%, 12/1/14 (b)		2,853,000		2,568,285
Goldman Sachs Group, Inc., 4.125%, 1/15/08		2,675,000		2,622,418
Household Automotive Trust, Series 2005-1, Class A4, 4.35%, 6/18/12		3,760,000		3,668,767
Lehman Brothers Holdings, Series MTNG, 4.80%, 3/13/14 (b)		7,432,000		7,045,789

	Principal Amount		Fair Value
Corporate Bonds, continued
Banking & Financial Services, continued
Lehman Brothers, Inc., Series MTNG, 4.72%, 4/20/07*	$	5,000,000	$	5,007,420
MBNA Credit Card Master Note Trust, Series 2003-A3, Class A3, 4.87%, 8/16/10 (d)*		3,240,000		3,247,002
Merrill Lynch & Co., 6.00%, 2/17/09 (b)		4,465,000		4,544,678
Morgan Stanley, 4.25%, 5/15/10		4,667,000		4,447,315
Morgan Stanley Dean Witter Capital I, Series 2001-TOP5, Class A2, 5.90%, 10/15/35*		4,968,000		4,996,368
Residential Asset Mortgage Products, Inc., Series 2003-RS4, Class AI6, 4.02%, 3/25/33		6,000,000		5,684,295
Residential Asset Mortgage Products, Inc., Series 2005-RZ4, Class A2, 5.08%, 11/25/35 (d)*		4,330,000		4,331,070
Residential Asset Securities Corp., Series 2005-KS6, Class A2, 4.97%, 7/25/35 (d)*		9,592,000		9,591,911
Structured Asset Investment Loan Trust, Series 2005-11, Class A6, 5.04%, 1/25/36 (d)*		7,950,000		7,954,160
Synovus Financial, 4.875%, 2/15/13		3,300,000		3,158,060
Wachovia Bank Commercial Mortgage Trust, 5.42%, 1/15/45		5,083,000		5,009,478
Wachovia Corp., 4.375%, 6/1/10		2,637,000		2,539,637
Wells Fargo Home Equity Trust, Series 2004-2, Class AI3, 3.97%, 9/25/24		4,572,000		4,463,954
				165,602,461
Information Technology (2.8%)
Electric Data Systems, Series B, 6.50%, 8/1/13*		5,031,000		5,116,230
IBM Corp., 4.96%, 6/28/07*		9,000,000		9,005,544
				14,121,774
Retail (0.5%)
Lowe’s Companies, Inc., 8.25%, 6/1/10		2,118,000		2,342,546
Telecommunications (3.9%)
America Movil SA de CV, 5.75%, 1/15/15 (b)		4,604,000		4,461,235
Motorola, Inc., 7.50%, 5/15/25 (b)		8,580,000		9,826,485
Sprint Capital Corp., 6.875%, 11/15/28		5,835,000		6,020,168
				20,307,888
Utilities (1.9%)
American Electric Power, Series C, 5.375%, 3/15/10		6,680,000		6,623,501
General Electric Co., 5.00%, 2/1/13		3,100,000		3,015,373
				9,638,874
Total Corporate Bonds (Cost $224,971,381)				220,875,302
Mortgage-Backed Securities (35.0%)
Federal Home Loan Mortgage Corp. (9.2%)
6.00%, 10/1/19, Pool # G11679		4,108,211		4,156,959
5.00%, 5/1/20, Pool # B19275		5,309,918		5,176,576
5.50%, 11/1/20, Pool # J02711		2,456,549		2,440,405

Continued

25

Total Return Bond Fund

Schedule of Portfolio Investments, continued March 31, 2006

(Unaudited)

	Principal Amount		Fair Value
Mortgage-Backed Securities, continued
Federal Home Loan Mortgage Corp., continued
5.50%, 3/1/21, Pool # J01432	$	900,001	$	894,155
4.50%, 6/1/35, Pool # G01842		3,438,968		3,172,293
5.50%, 6/1/35, Pool # A35148		8,465,686		8,268,139
5.50%, 7/1/35, Pool # A36540		5,160,501		5,040,081
6.00%, 7/1/35, Pool # A36304		2,678,256		2,679,930
5.50%, 8/1/35, Pool # A36652		2,220,657		2,168,838
5.00%, 9/1/35, Pool # A37961		2,701,085		2,570,631
5.50%, 9/1/35, Pool # G08080		1,552,479		1,516,252
5.50%, 12/1/35, Pool # A40359		2,432,992		2,376,219
6.00%, 1/1/36, Pool # A42269		4,668,890		4,671,808
6.00%, 2/1/36, Pool # A42812		1,847,756		1,848,911
				46,981,197
Federal National Mortgage Assoc. (14.4%)
6.00%, 10/1/13, Pool # 252061		261,544		265,096
5.50%, 4/1/18, Pool # 685496		366,773		364,648
4.50%, 6/1/19, Pool # 780349		5,168,246		4,942,869
5.00%, 8/1/20, Pool # 832058		579,894		565,391
5.00%, 8/1/20, Pool # 838787		925,666		902,516
5.50%, 11/1/20, Pool # 843972		2,403,394		2,389,466
6.00%, 9/1/34, Pool # 790912		4,630,378		4,632,327
6.50%, 9/1/34, Pool # 796569		3,726,950		3,802,652
6.50%, 1/1/35, Pool # 809198		2,468,668		2,518,812
6.00%, 2/1/35, Pool # 735269		2,721,268		2,721,268
5.50%, 3/1/35, Pool # 787561 (b)		10,211,346		9,968,827
5.50%, 4/1/35, Pool # 822982		7,684,092		7,511,633
6.00%, 4/1/35, Pool # 735503		805,649		805,649
6.00%, 4/1/35, Pool # 735502		1,651,800		1,651,800
6.00%, 5/1/35, Pool # 821037		7,087,856		7,087,856
7.00%, 6/1/35, Pool # 255820		2,042,492		2,103,555
7.00%, 6/1/35, Pool # 830686		2,453,506		2,526,856
5.00%, 9/1/35, Pool # 757857		2,164,859		2,061,126
5.50%, 10/1/35, Pool # 817568		3,947,766		3,854,608
6.00%, 11/1/35, Pool # 817636		2,314,711		2,314,711
6.00%, 11/1/35, Pool # 843803		2,329,973		2,329,973
5.50%, 2/1/36, Pool # 831295		1,947,883		1,901,917
6.00%, 2/1/36, Pool # 865639		5,473,479		5,473,479
4.40%, 11/25/33, Series 2003-W16, Class AF5		1,000,000		967,421
				73,664,456
Government National Mortgage Assoc. (11.4%)
6.00%, 1/15/33, Pool # 603914 (b)		2,617,341		2,648,258
6.00%, 8/15/34, Pool # 562388 (b)		5,823,516		5,892,770
5.50%, 4/15/35, Pool # 521279		3,094,920		3,065,131
5.00%, 4/15/36 (f)		48,458,000		46,928,568
				58,534,727
Total Mortgage-Backed Securities (Cost $182,610,231)				179,180,380
Municipal Bonds (6.2%)
California (1.7%)
Fresno County Pension Obligation, Series A, 4.20%, 8/15/13, FGIC		5,835,000		5,412,780
San Bernardino County Financing Authority, Pension Obligation Revenue, 6.87%, 8/1/08, MBIA		2,790,000		2,891,193
				8,303,973

	Principal Amount		Fair Value
Municipal Bonds, continued
Illinois (1.0%)
Chicago, Series B, 5.25%, 1/1/12, XLCA	$	3,150,000	$	3,122,028
Illinois State, 3.75%, 6/1/12		2,200,000		2,018,786
				5,140,814
Mississippi (0.4%)
Mississippi State, 5.30%, 8/1/16, Callable 8/1/13 @ 100		2,255,000		2,217,883
New York (1.6%)
New York State, Series D, 5.20%, 4/15/11		3,200,000		3,186,784
New York State, Series D, 5.21%, 4/15/12		2,720,000		2,702,864
Sales Tax Asset Receivables Corp., Series B, 4.06%, 10/15/10, FGIC		2,500,000		2,373,625
				8,263,273
Oregon (0.8%)
Oregon School Boards Association, 4.76%, 6/30/28, AMBAC		4,795,000		4,327,679
Texas (0.7%)
Brownsville Utility System, Series B, 4.92%, 9/1/14, AMBAC		3,570,000		3,442,765
Total Municipal Bonds (Cost $32,378,774)				31,696,387
U.S. Government Agencies (9.3%)
Federal Home Loan Bank (4.4%)
4.00%, 2/9/07, Series 2, Callable 5/9/06 @ 100*		5,000,000		4,969,705
4.25%, 3/24/08, Callable 6/24/06 @ 100 (b)		4,665,000		4,590,393
4.85%, 8/10/10, Callable 8/10/06 @ 100 (b)		5,970,000		5,850,928
5.875%, 2/15/11, Series FB11 (b)		6,415,000		6,583,003
				21,994,029
Federal Home Loan Mortgage Corp. (2.4%)
Series MTN, 4.00%, 6/1/07, Callable 6/1/06 @ 100*		4,885,000		4,842,627
4.625%, 8/15/08, Callable 8/15/06 @ 100 (b)		4,850,000		4,801,088
4.50%, 6/15/10, Series MTN, Callable 6/15/06 @ 100		2,885,000		2,805,498
				12,449,213
Federal National Mortgage Assoc. (2.5%)
2.53%, 4/7/06		4,800,000		4,798,656
2.125%, 4/15/06		1,000,000		999,030
6.625%, 11/15/10 (b)		6,751,000		7,152,543
				12,950,229
Total U.S. Government Agencies (Cost $47,763,827)				47,393,471
U.S. Treasury Bonds (9.3%)
8.875%, 8/15/17 (b)		20,395,000		27,232,097
7.875%, 2/15/21 (b)		6,276,000		8,101,927
7.25%, 8/15/22 (b)		10,032,000		12,440,463
Total U.S. Treasury Bonds (Cost $49,230,374)				47,774,487

Continued

26

Total Return Bond Fund

Schedule of Portfolio Investments, continued March 31, 2006

(Unaudited)

	Principal Amount		Fair Value
U.S. Treasury Notes (6.7%)
3.50%, 2/15/10 (b)	$	4,800,000	$	4,575,749
4.00%, 4/15/10		7,320,000		7,098,402
4.50%, 2/28/11 (b)		4,893,000		4,821,709
4.00%, 11/15/12		2,405,000		2,289,072
2.00%, 1/15/14 (b)		7,153,000		7,492,184
1.875%, 7/15/15 (b)		5,000,000		4,902,315
4.50%, 11/15/15 (b)		2,991,000		2,902,439
Total U.S. Treasury Notes (Cost $34,472,826)				34,081,870
Repurchase Agreement (1.6%)
U.S. Bank NA, 4.55%, dated 3/31/06, maturing 4/3/06, with a maturity value of $8,032,816 (Collateralized fully by U.S. Government Agencies)		8,029,771		8,029,771
Total Repurchase Agreement (Cost $8,029,771)				8,029,771
Securities Held as Collateral for Securities on Loan (27.9%)
Pool of Various Securities for BB&T Funds — Note 2 — Security Loans		142,805,013		142,805,013
Total Securities Held as Collateral for Securities on Loan (Cost $142,805,013)				142,805,013
Total Investments (Cost $722,262,197) — 139.1%				711,836,681
Net other assets (liabilities) — (39.1)%				(199,939,522	)
Net Assets — 100.0%			$	511,897,159

See page 47 for footnote legend to the Schedules of Portfolio Investments.

See accompanying notes to the financial statements.

27

Kentucky Intermediate Tax-Free Fund

Schedule of Portfolio Investments March 31, 2006

(Unaudited)

	Principal Amount		Fair Value
Municipal Bonds (94.0%)
Kentucky (94.0%)
Education (15.7%)
Allen County, Kentucky, School District, 5.25%, 4/1/10, Callable 4/1/07 @ 102	$	455,000	$	471,366
Anderson County, Kentucky, School District Financing Corp. School Building Revenue, 4.25%, 12/1/20, Callable 12/1/15 @ 100, FSA		315,000		310,253
Hardin County, Kentucky, School District, 4.00%, 2/1/18		300,000		291,708
Jefferson County, Kentucky, School District, 5.25%, 7/1/11, Callable 1/1/10 @ 101, FSA		250,000		264,895
Jefferson County, Kentucky, School District, 5.50%, 1/1/14, FSA		125,000		137,381
Louisville & Jefferson Counties, Kentucky, 5.00%, 5/15/10		500,000		524,485
Somerset, Kentucky, Independent School District Finance Corporation, 4.00%, 10/1/08		175,000		177,035
University of Kentucky, Series Q, 5.00%, 5/1/10		250,000		261,723
				2,438,846
Facilities Support Services (43.2%)
Kentucky State Property & Buildings Commission, Project No. 69, Series A, 5.50%, 8/1/11, FSA		540,000		584,912
Kentucky State Property & Buildings Commission, Project No. 64, 5.375%, 5/1/13, Callable 11/1/09 @ 100, MBIA		500,000		528,195
Kentucky State Property & Buildings Commission, Project No. 67, 5.625%, 9/1/13, Callable 9/1/10 @ 100		300,000		323,322
Kentucky State Property & Buildings Commission, Project No. 74, 5.375%, 2/1/14, Callable 2/1/12 @ 100, FSA		500,000		540,640
Kentucky State Property & Buildings Commission, Project No. 81, 5.00%, 11/1/16, Callable 11/1/13 @ 100, AMBAC		500,000		529,660
Kentucky State Property & Buildings Commission, Project No. 65, 5.95%, 2/1/17, Callable 2/1/10 @ 100		490,000		529,038
Kentucky State Property & Buildings Commission, Project No. 83, 5.00%, 10/1/18		250,000		269,803
Kentucky State Property & Buildings Commission, Project No. 76, 5.50%, 8/1/21		1,045,000		1,191,006
Kentucky State Property & Buildings Commission Revenue, Project No. 74, 5.15%, 2/1/22, FSA		175,000		187,182
Kentucky State Property & Buildings Commission Revenue, Project No. 79, 5.00%, 10/1/22, Prerefunded 10/1/13 @ 100, FSA		500,000		535,470
Leslie County, Kentucky, Detention Facilities Improvement Project, 4.75%, 12/1/35, Callable 12/1/15 @ 100		750,000		724,492
Louisville, Kentucky, Parking Authority, 7.50%, 7/1/09, Callable 7/1/06 @ 100		350,000		390,576

	Principal Amount		Fair Value
Municipal Bonds, continued
Kentucky, continued
Facilities Support Services, continued
Warren County, Kentucky, Justice Center Expansion Corp. Revenue, First Mortgage of AOC Judicial Facilities, 4.375%, 9/1/24, Callable 9/1/15 @ 100, MBIA	$	415,000	$	408,028
				6,742,324
Health Care (3.4%)
Kentucky Economic Development Financial Authority, Catholic Health Initiatives, Series A, 5.75%, 12/1/15, Callable 6/1/10 @ 101		500,000		533,375
Housing (1.9%)
Kentucky Area Development District, 5.40%, 6/1/14		220,000		233,446
Kentucky Housing Corporation, Series D, 5.20%, 7/1/07, Callable 7/1/06 @ 102, FHA		65,000		65,900
				299,346
Transportation (8.0%)
Kentucky State Turnpike Authority, Revitalization Projects, 6.50%, 7/1/08, AMBAC		350,000		371,179
Kentucky State Turnpike Authority, Revitalization Projects, Series A, 5.50%, 7/1/12, AMBAC		500,000		544,540
Kentucky State Turnpike Authority, Reviatlization Projects, Series A, 5.50%, 7/1/15, AMBAC		300,000		332,529
				1,248,248
Urban and Community Development (8.8%)
Bell County, Kentucky, Judicial Center Project, 5.40%, 9/1/13, Callable 3/1/11 @ 102		160,000		173,187
Davies County, Kentucky, Court Facilities Project, Series A, 5.60%, 10/1/06		245,000		247,479
Hopkins County, Kentucky, Detention Facilities Project, 5.375%, 2/1/09, ETM, FGIC		350,000		366,122
Jefferson County, Kentucky, Capital Projects, 5.20%, 6/1/08, Callable 6/1/07 @ 102, MBIA		295,000		304,446
Paducah, Kentucky, Public Housing Authority, 5.00%, 10/1/06, U.S. Government Guaranteed		270,000		272,084
				1,363,318
Utilities (13.0%)
Lexington-Fayette Urban County, Kentucky, Sewer Systems, 5.50%, 7/1/11		450,000		486,518
Louisville & Jefferson County, Kentucky, Metropolitan Sewer District, Sewer & Drain System, Series A, 5.00%, 5/15/36, Callable 11/15/11 @ 101, MBIA		725,000		748,635
Louisville, Kentucky, Revenue Bonds, 5.25%, 11/15/17, Callable 11/15/10 @ 100		190,000		200,522
Louisville-Jefferson County, Kentucky, 5.00%, 5/15/38, Callable 5/15/14 @ 101		515,000		532,762
Winchester, Kentucky, 4.70%, 7/1/15, Callable 7/1/12 @ 101, AMBAC		50,000		52,476
				2,020,913
Total Municipal Bonds (Cost $14,625,480)				14,646,370

Continued

28

Kentucky Intermediate Tax-Free Fund

Schedule of Portfolio Investments, continued March 31, 2006

(Unaudited)

	Shares	Fair Value
Investment Company (4.8%)
Federated Tax-Free Obligations Fund, Institutional Service Class	746,118	$	746,118
Total Investment Company (Cost $746,118)			746,118
Total Investments (Cost $15,371,598) — 98.8%			15,392,488
Net other assets (liabilities) — 1.2%			181,691
Net Assets — 100.0%		$	15,574,179

See page 47 for footnote legend to the Schedules of Portfolio Investments.

See accompanying notes to the financial statements.

29

Maryland Intermediate Tax-Free Fund

Schedule of Portfolio Investments March 31, 2006

(Unaudited)

	Principal Amount		Fair Value
Municipal Bonds (95.0%)
Maryland (95.0%)
Education (19.9%)
Maryland State Authority for American Physics, 5.25%, 12/15/13, Callable 12/15/11 @ 100, GTY AGMT	$	210,000	$	223,724
Maryland State Health & Higher Education, 4.625%, 7/1/10		100,000		102,042
Maryland State Health & Higher Education, 5.125%, 7/1/11, AMBAC		100,000		106,737
Maryland State Health & Higher Education, 4.80%, 7/1/12		100,000		103,013
Maryland State Health & Higher Education, 5.50%, 7/1/13, Callable 7/1/06 @ 100		50,000		51,304
Maryland State Health & Higher Education, 4.375%, 8/15/13		180,000		181,040
Maryland State Health & Higher Education, 5.50%, 7/1/24, Callable 7/1/06 @ 100		215,000		215,112
Maryland State Health & Higher Education, 5.125%, 7/1/33, Callable 7/1/08 @ 101		55,000		56,830
Maryland State Health & Higher Education, Series A, 5.75%, 1/1/15, Callable 1/1/13 @ 101		100,000		107,577
Maryland State Health & Higher Educational Facilities Authority Revenue, Helix Health Issue, 5.00%, 7/1/27, AMBAC, ETM		70,000		74,850
Maryland State Health & Higher Educational Facilities Authority Revenue, Peninsula Regional Medical Center,, 4.625%, 7/1/27, Callable 7/1/16 @ 100		375,000		366,049
Queen Annes County, Maryland, School and Public Facilities, 5.25%, 1/15/20, Prerefunded 1/15/10 @ 101, FGIC		500,000		532,399
				2,120,677
General Obligations (61.7%)
Anne Arundel County, Maryland, 5.375%, 3/1/13		400,000		433,904
Anne Arundel County, Maryland, Construction and General Improvement, 5.00%, 3/1/17, Callable 3/1/15 @ 100		500,000		534,385
Anne Arundel County, Maryland, Construction and Water Utility & Sewer Improvements, 5.00%, 3/1/17, Callable 3/1/15 @ 100		250,000		267,193
Cecil County, Maryland, Refunding & Improvement Bonds, 5.00%, 11/1/15, FGIC		485,000		522,355
Charles County, Maryland, Construction & Public Improvement, 4.00%, 3/1/15		500,000		499,355
Frederick County, Maryland, Public Facilities Bonds,, 4.00%, 12/1/13		255,000		256,884
Maryland State, 5.00%, 2/1/12		750,000		798,877
Maryland State & Local Facilities, Series B, 5.25%, 7/15/06		250,000		251,295
Maryland State & Local Facilities, Series 2, 5.00%, 8/1/11		350,000		371,945

		Shares or Principal Amount		Fair Value
Municipal Bonds, continued
Maryland, continued
General Obligations, continued
Maryland State & Local Facilities Loan, 2nd Series A, 5.00%, 8/1/17, Callable 8/1/15 @ 100		$	500,000	$	536,744
Prince Georges County, Maryland, 5.00%, 10/1/12			340,000		362,600
Prince Georges County, Maryland, Construction and Public Improvement Refunding Bonds, Series E, 5.00%, 12/1/16, Callable 12/1/14 @ 100			500,000		533,345
Talbot County, Maryland, Public Facilities Projects, 5.00%, 3/15/22, Callable 3/15/12 @ 101			200,000		209,894
Washington County, Maryland, 4.80%, 1/1/08, Callable 6/15/06 @ 100, FGIC			100,000		100,090
Washington Suburban Sanitation District, Maryland, Water Supply Refunding Bonds, 5.00%, 6/1/13			500,000		535,850
Washington Suburban Sanitation District, Maryland, Water Supply Refunding Bonds, 5.00%, 6/1/16, Callable 6/1/15 @ 100			325,000		349,512
					6,564,228
Housing (2.3%)
Baltimore, Maryland, Public Housing Authority, 5.75%, 7/1/09, Callable 7/1/06 @ 100			235,000		248,071
Pollution Control (7.7%)
Anne Arundel County, Maryland, Pollution Control Revenue, Baltimore Gas & Electric Co. Project, 6.00%, 4/1/24, Callable 4/1/06 @ 100			45,000		45,776
Baltimore, Maryland, Project Revenue, Water Project, Series A, 5.00%, 7/1/24, Unrefunded Portion, FGIC	��		425,000		461,767
Baltimore, Maryland, Project Revenue, Water Project, Series A, 5.00%, 7/1/24, ETM, FGIC			290,000		313,557
					821,100
Transportation (3.4%)
Maryland State Transit Department, 6.80%, 7/1/16			320,000		365,971
Total Municipal Bonds (Cost $10,130,011)					10,120,047
Investment Companies (5.3%)
Federated Maryland Municipal Cash Trust			487,435		487,435
Federated Tax-Free Obligations Fund, Institutional Service Class			80,000		80,000
Total Investment Companies (Cost $567,435)					567,435
Total Investments (Cost $10,697,446) — 100.3%					10,687,482
Net other assets (liabilities) — (0.3)%					(33,442	)
Net Assets — 100.0%				$	10,654,040

See page 47 for footnote legend to the Schedules of Portfolio Investments.

See accompanying notes to the financial statements.

30

North Carolina Intermediate Tax-Free Fund

Schedule of Portfolio Investments March 31, 2006

(Unaudited)

	Principal Amount		Fair Value
Municipal Bonds (97.1%)
North Carolina (97.1%)
Education (13.4%)
Appalachian State University, 5.25%, 7/15/17, MBIA	$	1,750,000	$	1,922,830
Appalachian State University, 5.25%, 7/15/20, Callable 7/15/15 @ 100, MBIA		1,000,000		1,084,010
Appalachian State University of North Carolina Revenues, Refunding Bonds, 5.00%, 7/15/18, Callable 7/15/15 @ 100, MBIA		2,030,000		2,156,936
Iredell County, School Improvements, 5.00%, 2/1/17, Callable 2/1/16 @ 100		1,350,000		1,442,813
Iredell County, School Improvements, 5.00%, 2/1/18, Callable 2/1/16 @ 100		2,500,000		2,663,774
Johnston County, School & Museum Project, 5.50%, 8/1/10, Callable 8/1/09 @ 101, FSA		1,070,000		1,139,529
North Carolina Capital Facilities Finance Agency Revenue, Pfeiffer University Project, 5.25%, 5/1/15, Callable 5/1/06 @ 102 (e)		2,182,982		2,228,279
University of North Carolina, Series A, 4.75%, 12/1/34, Callable 12/1/15 @ 100		1,540,000		1,554,183
University of North Carolina at Charlotte, Certificates of Participation, Student Housing Project, 5.00%, 3/1/21, Callable 3/1/15 @ 100		1,035,000		1,082,693
				15,275,047
General Obligations (35.3%)
Bladen County, 5.60%, 5/1/13, Callable 5/1/10 @ 101.5, FSA		1,150,000		1,247,233
Brunswick County, 5.00%, 5/1/16, Callable 5/1/11 @ 102		1,375,000		1,457,995
Buncombe County, Certificates of Participation, 4.00%, 4/1/16		1,985,000		1,942,541
Cabarrus County, Refunding Bonds, 5.00%, 2/1/16		1,000,000		1,070,510
Cabarrus County, Certificates of Participation, 5.25%, 2/1/12, AMBAC		1,285,000		1,372,933
Charlotte, 5.50%, 6/1/09		1,460,000		1,542,694
Cumberland County, 5.50%, 3/1/09		1,055,000		1,108,805
Currituck County, 5.00%, 6/1/12, AMBAC		1,160,000		1,234,182
Durham, 5.00%, 2/1/13		1,650,000		1,764,510
Greensboro, Public Improvements, 4.00%, 2/1/18, Callable 2/1/16 @ 100		650,000		638,541
Greensboro, Public Improvements, 4.00%, 2/1/19, Callable 2/1/16 @ 100		415,000		405,604
Guilford County, 5.25%, 10/1/15, Callable 10/1/10 @ 102		2,030,000		2,195,526
Guilford County, Public Improvements, Series B, 5.00%, 10/1/09		2,000,000		2,093,980
High Point, Public Improvements, Series B, 5.40%, 6/1/08		1,350,000		1,399,653
Johnston County, 5.50%, 3/1/12, Callable 3/1/10 @ 101, FGIC		1,000,000		1,074,080
Johnston County, Refunding Bonds, 5.00%, 2/1/16, Callable 2/1/15 @ 100, FGIC		1,785,000		1,906,773
Johnston County, 5.25%, 2/1/17, FGIC		1,500,000		1,633,515

	Principal Amount		Fair Value
Municipal Bonds, continued
North Carolina, continued
General Obligations, continued
Mecklenburg County, Public Improvements, Series A, 4.00%, 2/1/16, Callable 2/1/13 @ 100, OID	$	570,000	$	567,908
New Hanover County, 5.25%, 2/1/18		1,000,000		1,100,010
New Hanover County, Public Improvements, 5.30%, 11/1/08		1,500,000		1,561,950
Orange County, Public Improvements, 5.25%, 4/1/08		1,300,000		1,341,795
Randolph County, Certificates of Participation, 5.20%, 6/1/09, FSA		1,175,000		1,226,547
Randolph County, Certificates of Participation, 5.30%, 6/1/13, Callable 6/1/09 @ 101, FSA		1,750,000		1,850,433
Rowan County, Refunding Bonds, 5.00%, 4/1/17, Callable 2/1/15 @ 100, FSA		2,695,000		2,873,516
Rutherford County, Certificates of Participation, 5.00%, 9/1/18, Callable 9/1/12 @ 101		1,595,000		1,681,050
State Public Improvements, Series B, 5.00%, 4/1/18, Callable 4/1/13 @ 100		2,000,000		2,112,320
Wake County, 5.30%, 2/1/11, Callable 2/1/10 @ 100.5		1,000,000		1,062,090
Winston Salem, Certificates of Participation, 5.00%, 6/1/16, Callable 6/1/11 @ 101		1,000,000		1,053,830
				40,520,524
Health Care (16.5%)
Charlotte-Mecklenberg Hospital Authority, Health Care System, Series A, 5.00%, 1/15/13, Callable 1/15/07 @ 102		1,600,000		1,645,376
New Hanover County, Regional Medical Center Project, 5.25%, 10/1/12, Callable 10/1/09 @ 101, MBIA		1,000,000		1,052,840
North Carolina Medical Care Commission Health Care Facilities Revenue, Carolina Medicorp Project, 5.25%, 5/1/09, Callable 5/1/07 @ 100, OID		1,325,000		1,344,729
North Carolina Medical Care Commission Health Care Facilities Revenue, Stanley Memorial Hospital Project, 5.45%, 10/1/08, Callable 10/1/06 @ 102, AMBAC		750,000		770,903
North Carolina Medical Care Commission Hospital Revenue, Gaston Memorial Hospital Project, 5.40%, 2/15/11, Callable 2/15/07 @ 101		565,000		576,876
North Carolina Medical Care Commission Hospital Revenue, Gaston Memorial Hospital Project, 5.50%, 2/15/15, Callable 2/15/07 @ 101, OID		2,130,000		2,174,943
North Carolina Medical Care Commission Hospital Revenue, Halifax Regional Medical Center, 4.60%, 8/15/07, OID		1,795,000		1,802,108
North Carolina Medical Care Commission Hospital Revenue, Pitt Coutny Memorial Hospital, Series A, 5.25%, 12/1/10, Prerefunded 12/1/08 @ 101		1,155,000		1,211,676

Continued

31

North Carolina Intermediate Tax-Free Fund

Schedule of Portfolio Investments, continued March 31, 2006

(Unaudited)

	Principal Amount		Fair Value
Municipal Bonds, continued
North Carolina, continued
Health Care, continued
North Carolina Medical Care Commission Revenue, Health Care and Housing, ARC Projects, Series A, 4.65%, 10/1/14	$	1,360,000	$	1,362,842
North Carolina Medicare Common Revenue, 4.75%, 9/1/24, Callable 9/1/14 @ 100		1,515,000		1,541,240
Pitt County Memorial Hospital, 5.50%, 12/1/15, Callable 12/1/06 @ 101		2,415,000		2,556,495
Wake County Hospital, 5.13%, 10/1/13, MBIA		2,630,000		2,837,770
				18,877,798
Lease/Purchase (1.4%)
North Carolina Infrastructure Financial Corp., Correctional Facilities Projects, 5.00%, 10/1/17, Callable 10/1/13 @ 100		1,500,000		1,582,440
Transportation (2.3%)
Piedmont Triad Airport Authority, Series A, 6.38%, 7/1/16, Callable 7/1/09 @ 101, FSA		1,385,000		1,510,564
State Highway Improvements, 5.00%, 5/1/14		1,000,000		1,074,670
				2,585,234
Utilities (28.2%)
Asheville Water Systems Revenue, Refunding Bonds, 5.00%, 8/1/17, Callable 8/1/15 @ 100, FSA		1,000,000		1,067,080
Asheville Water Systems Revenue, Refunding Bonds, 5.00%, 8/1/21, Callable 8/1/15 @ 100, FSA		2,295,000		2,426,343
Charlotte Storm Water Fee, 5.00%, 6/1/34, Callable 6/1/14 @100		1,500,000		1,553,805
Durham Water & Sewer Utility Systems, 5.00%, 6/1/12, Callable 6/1/11 @ 101		1,000,000		1,060,850
Eastern Muncipal Power, Series A, 4.50%, 1/1/24, Callable 1/1/22 @ 100		1,925,000		1,984,213
Gastonia Combined Utilities System Revenue, 5.00%, 5/1/16, Callable 5/1/15 @ 100, AMBAC		1,060,000		1,129,472
Gastonia Utilities System, 5.00%, 5/1/10, MBIA		1,000,000		1,049,710
Greenville Enterprise Systems, 5.50%, 9/1/10, FSA		1,455,000		1,561,812
Lincolnton Enterprise System, 5.00%, 5/1/16, Callable 5/1/15 @ 100		1,110,000		1,175,845

	Share or Principal Amount		Fair Value
Municipal Bonds, continued
North Carolina, continued
Utilities, continued
Municipal Power Agency No. 1, Catawba Electric Revenue, 5.50%, 1/1/13, AMBAC-TCRS, ETM	$	1,610,000	$	1,747,236
North Carolina Eastern Municipal Power Agency, Power System Revenue, Series A, 5.00%, 1/1/17, ETM, OID		600,000		644,814
North Carolina Eastern Municipal Power Agency, Power System Revenue, Series A, 6.40%, 1/1/21, OID		3,105,000		3,748,233
North Carolina Eastern Municipal Power Agency, Power System Revenue, Series A, 6.00%, 1/1/26, Prerefunded 1/1/22 @ 100, OID		2,390,000		2,878,779
North Carolina Enterprise System, Series A, 5.25%, 4/1/17, Callable 4/1/14 @ 100		1,000,000		1,078,470
Orange Water & Sewer Authority, Water & Sewer System Revenue, Series A, 5.25%, 7/1/16, Callable 7/1/14 @ 100		1,475,000		1,593,693
Orange Water & Sewer Authority, Water & Sewer System Revenue, Series A, 5.25%, 7/1/18, Callable 7/1/14 @ 100		1,690,000		1,822,310
State Clean Water Project, Series A, 4.00%, 3/1/16		1,075,000		1,070,614
Winston — Salem Water & Sewer System Revenue, Series A, 5.00%, 6/1/15, Callable 6/1/12 @ 100		2,115,000		2,229,231
Winston — Salem Water & Sewer System Revenue, Refunding Bonds, 5.00%, 6/1/24, Callable 6/1/15 @ 100		2,315,000		2,438,365
				32,260,875
Total Municipal Bonds (Cost $109,514,360)				111,101,918
Investment Company (1.7%)
PNC North Carolina Blackrock Fund, Institutional Class		1,937,991		1,937,991
Total Investment Company (Cost $1,937,991)				1,937,991
Total Investments (Cost $111,452,351) — 98.8%				113,039,909
Net other assets (liabilities) — 1.2%				1,338,293
Net Assets — 100.0%			$	114,378,202

See page 47 for footnote legend to the Schedules of Portfolio Investments.

See accompanying notes to the financial statements.

32

South Carolina Intermediate Tax-Free Fund

Schedule of Portfolio Investments March 31, 2006

(Unaudited)

	Principal Amount		Fair Value
Municipal Bonds (99.5%)
South Carolina (99.5%)
Education (45.2%)
Anderson County, South Carolina, School District, Series B, 6.00%, 3/1/12, Callable 3/1/10 @ 100, SCSDE	$	500,000	$	545,200
Anderson County, South Carolina. School District No. 4, 4.50%, 3/1/23, Callable 3/1/16 @ 100, FSA, SCSDE		500,000		501,570
Beaufort County, South Carolina, School District, Series A, 5.00%, 3/1/13, SCSDE		500,000		532,735
Beaufort County, South Carolina, School District, Refunding Bonds, Series A, 5.00%, 3/1/19, Callable 3/1/15 @ 100, SCSDE		465,000		492,058
Beaufort County, South Carolina, School District, 5.00%, 2/1/24, Callable 2/1/14 @ 100, MBIA		265,000		276,673
Charleston County, South Carolina, School District, 5.00%, 12/1/11		505,000		531,740
Charleston County, South Carolina, School District, Series B, 5.00%, 2/1/19, SCSDE		250,000		261,913
Charleston Educational Excellence Financing Corp. Revenues, Charleston County School District, 5.25%, 12/1/29, Callable 12/1/15 @ 100		395,000		414,513
Horry County, South Carolina, School District, Series A, 5.00%, 3/1/11, SCSDE		500,000		528,500
Jasper County, South Carolina, School District, 5.25%, 3/1/23, Callable 3/1/15 @ 100, MBIA, SCSDE		500,000		536,385
Kershaw County, South Carolina, School District, 6.125%, 2/1/16, Callable 2/1/10 @ 100, SCSDE		500,000		542,840
Laurens County, School District No. 55 Installment Purchase Revenue, 5.25%, 12/1/24, Callable 12/1/15 @ 100		250,000		258,995
Lexington One School Facilities Corp., Lexington County School District No. 1, Installment Purchase Revenue, 5.25%, 12/1/23, Callable 12/1/15 @ 100		500,000		525,100
Newberry County, South Carolina, School District Project, 5.25%, 12/1/19, Callable 12/1/15 @ 100		250,000		260,805
Richland County, South Carolina School District No. 001, Refunding Bonds, 5.00%, 3/1/19, Callable 3/1/15 @ 100, FSA, SCSDE		500,000		529,095
Richland County, South Carolina, School District, 5.25%, 3/1/20, Callable 3/1/12, SCSDE		300,000		319,491
Richland County, South Carolina, School District No. 2, Series A, 5.00%, 4/1/15, FGIC, SCSDE, State Aid Witholding		500,000		536,700
South Carolina Educational Facilities Authority For Private Nonprofit Institutions, Furman University, 4.625%, 10/1/35, Callable 10/1/16 @ 100 (f)		500,000		485,500
Spartanburg County, South Carolina, School District, 5.25%, 5/1/10, SCSDE		525,000		556,846

	Principal Amount		Fair Value
Municipal Bonds, continued
South Carolina, continued
Education, continued
York County, South Carolina, School District, Series A, 5.00%, 3/1/11, Callable 3/1/09 @ 101, SCSDE	$	500,000	$	522,010
				9,158,669
General Obligations (9.3%)
Lexington County, South Carolina, 5.00%, 2/1/14, State Aid Withholding, FGIC		500,000		527,010
Lexington County, South Carolina, 5.00%, 2/1/18, State Aid Withholding, FGIC		500,000		523,825
South Carolina State Highway, Series A, 5.00%, 8/1/16, Callable 8/1/15 @ 100		530,000		569,548
University of South Carolina, Series A, 5.00%, 5/1/19, Callable 5/1/15 @ 100, XLCA		240,000		253,438
				1,873,821
Health Care (12.8%)
Florence County, South Carolina, Regional Medical Center Project, Series A, 5.25%, 11/1/11, Callable 11/1/08 @ 102, MBIA (d)		500,000		526,480
Lexington County, South Carolina, Health Services District, 4.75%, 11/1/09		475,000		485,925
Medical University of South Carolina Facilities, 6.00%, 8/15/12 (d)		500,000		560,360
Medical University of South Carolina Facilities, 5.625%, 8/15/15		200,000		219,940
South Carolina Jobs Economic Development Authority Hospital Facilities, 6.00%, 8/1/12		250,000		274,083
South Carolina Jobs Economic Development Authority Hospital Facilities, Anderson Area Medical Center, 5.50%, 2/1/11, Callable 2/1/09 @ 101, FSA		500,000		526,545
				2,593,333
Housing (0.5%)
Florence, South Carolina, New Public Housing Authority, 5.75%, 8/1/10, Callable 8/1/06 @ 100, U.S. Government Guaranteed		100,000		107,062
Public Improvements (2.5%)
Lancaster County, South Carolina, Assessment Revenue, Sun City Carolina Lakes Improvement, 5.45%, 12/1/37, Callable 12/1/15 @ 100		500,000		503,585
Utilities (29.2%)
Berkeley County, South Carolina, Water and Sewer, 5.00%, 6/1/24, Callable 6/1/15 @ 100, FSA		500,000		523,940
Berkley County, South Carolina, Water & Sewer Revenue, Series A, 5.00%, 6/1/21, Callable 6/1/15 @ 100, FSA		500,000		525,870
Charleston, South Carolina, Waterworks & Sewer, 5.125%, 1/1/12		425,000		453,365
Charleston, South Carolina, Waterworks & Sewer, 5.25%, 1/1/14		600,000		639,413

Continued

33

South Carolina Intermediate Tax-Free Fund

Schedule of Portfolio Investments, continued March 31, 2006

(Unaudited)

	Shares or Principal Amount		Fair Value
Easley, South Carolina, Utility Revenue, 5.25%, 12/1/18, Prerefunded 12/1/12 @ 100	$	250,000	$	270,288
Florence, South Carolina, Waterworks & Sewer, 7.50%, 3/1/11, Callable 3/1/10 @ 101, AMBAC		590,000		675,295
Greenville, South Carolina, Stormwater System Revenue, 5.00%, 4/1/22, Callable 4/1/11 @ 101, FSA		400,000		416,596
Greenville, South Carolina, Waterworks Revenue, 5.25%, 2/1/19, Callable 2/1/13 @ 100		380,000		409,549
Rock Hill, South Carolina, Utility System, Series A, 5.375%, 1/1/19, Callable 1/1/13 @ 100, FSA		500,000		537,835
South Carolina State, Public Service Authority, Series B, 5.00%, 1/1/25, Callable 1/1/09 @ 101, MBIA		335,000		346,893
Spartanburg, South Carolina, Water Works, 5.25%, 6/1/11, FSA		500,000		534,300
Western Carolina, Sewer Authority, 5.25%, 3/1/10, FSA		550,000		580,740
				5,914,084
Total Municipal Bonds (Cost $19,923,175)				20,150,554
Investment Company (2.1%)
Federated Tax-Free Obligations Fund, Institutional Service Class		417,876		417,876
Total Investment Company (Cost $417,876)				417,876
Total Investments (Cost $20,341,051) — 101.6%				20,568,430
Net other assets (liabilities) — (1.6)%				(320,193	)
Net Assets — 100.0%			$	20,248,237

See page 47 for footnote legend to the Schedules of Portfolio Investments.

See accompanying notes to the financial statements.

34

Virginia Intermediate Tax-Free Fund

Schedule of Portfolio Investments March 31, 2006

(Unaudited)

	Principal Amount		Fair Value
Municipal Bonds (97.6%)
Virginia (95.4%)
Correctional Facilities (3.0%)
Riverside Virginia Regional Jail Authority, Jail Facility Revenue, 5.00%, 7/1/19, Callable 7/1/13 @ 101, MBIA	$	2,210,000	$	2,325,804
Education (15.8%)
Amherst Industrial Development Authority Revenue, Sweet Briar Educational Facilities Refunding Bonds, 4.50%, 9/1/17, Callable 9/1/16 @ 100		225,000		222,676
Amherst Industrial Development Authority Revenue, Sweet Briar Educational Facilities Refunding Bonds, 4.50%, 9/1/18, Callable 9/1/16 @ 100		450,000		442,962
Culpeper Virginia Industrial Development Authority, Public Facilities Lease Revenue, School Facilities Project, 5.00%, 1/1/22, Callable 1/1/15 @ 100, MBIA		1,000,000		1,046,820
University of Virginia, General Revenue, Series B, 5.00%, 6/1/22, Callable 6/1/13 @ 100		850,000		889,415
Virginia College Building Authority, 5.50%, 4/1/10		1,000,000		1,063,490
Virginia College Building Authority, 5.25%, 1/1/31, MBIA		1,360,000		1,528,735
Virginia College Building Authority, Educational Facilities Revenue, Public Higher Education Financing Program, Series A, 5.00%, 9/1/22, Callable 9/1/15 @ 100		1,000,000		1,053,700
Virginia State Public School Authority, Series B, 5.25%, 8/1/10, Callable 8/1/09 @ 101, State Aid Withholding		1,000,000		1,058,600
Virginia State Public School Authority, Series D, 5.25%, 2/1/12, State Aid Withholding		1,145,000		1,227,669
Virginia State Public School Authority, 5.00%, 8/1/28, Callable 8/1/13 @ 100, State Aid Withholding		1,510,000		1,564,254
Virginia State Public School Authority, School Financing, 5.25%, 8/1/10		2,040,000		2,163,583
				12,261,904
General Obligations (48.8%)
Alexandria, Virginia, Public Improvement, 5.00%, 6/15/08		1,000,000		1,030,060
Alexandria, Virginia, Public Improvement, 5.00%, 1/1/13		1,850,000		1,977,576
Alexandria, Virginia, Refunding Bonds, Series B, 5.00%, 6/15/16, Callable 6/15/14 @ 100		1,060,000		1,131,243
Arlington County, Virginia, 5.125%, 6/1/11, Callable 6/1/09 @ 100		1,000,000		1,044,510
Arlington County, Virginia, 5.00%, 5/15/15, Callable 5/15/14 @ 100		1,795,000		1,921,565
Arlington County, Virginia, Public Improvement, 5.00%, 5/15/25, Callable 5/15/15 @ 100, State Aid Withholding		1,500,000		1,584,270

	Principal Amount		Fair Value
Municipal Bonds, continued
General Obligations, continued
Fairfax County, Virginia, Public Improvement, Series A, 5.00%, 6/1/09, Callable 6/1/08 @ 102, State Aid Witholding	$	2,000,000	$	2,096,080
Hampton, Virginia, Public Improvement, 5.00%, 4/1/17		1,065,000		1,125,013
Manassas, Virginia, Series A, 5.25%, 1/1/11, Callable 1/1/08 @ 102		1,200,000		1,256,184
Newport News, Virginia, 5.00%, 3/1/11		2,000,000		2,084,140
Newport News, Virginia, Series A, 5.50%, 5/1/13, Callable 5/1/10 @ 102		1,845,000		2,003,190
Newport News, Virginia, Series A, 5.00%, 7/1/22, Callable 7/1/13 @ 100, State Aid Witholding		1,250,000		1,304,713
Pittsylvania County, Virginia, 5.625%, 3/1/15		1,315,000		1,439,912
Portsmouth, Virginia, Public Utility Refunding Bonds, Series B, 5.00%, 4/1/22, Callable 4/1/15 @ 100, MBIA		2,545,000		2,686,527
Richmond, Virginia, 5.25%, 1/15/09		1,500,000		1,564,620
Roanoke, Virgina, Public Improvement, 5.00%, 10/1/17, Callable 10/1/14 @ 101		1,000,000		1,068,770
Roanoke, Virginia, Public Improvement, 5.00%, 2/1/18		1,335,000		1,422,456
Spotsylvania County, Virginia, 5.50%, 7/15/12, FSA		2,925,000		3,203,752
Suffolk, Virginia, Refunding Bonds, 5.00%, 12/1/19, Callable 12/1/15 @ 100		1,270,000		1,348,931
Virginia Beach, Virginia, Public Improvement, 5.25%, 3/1/08, State Aid Withholding		1,000,000		1,030,080
Virginia Beach, Virginia, Public Improvement, 5.25%, 3/1/11, Callable 3/1/10 @ 101, State Aid Withholding		3,205,000		3,414,670
Virginia Beach, Virginia, Public Improvement, Series B, 5.00%, 5/1/17, Callable 5/1/16 @ 102		1,000,000		1,075,510
Virginia State, Series A, 5.00%, 6/1/20, Callable 6/1/15 @ 100		1,040,000		1,105,957
				37,919,729
Health Care (1.3%)
Virginia Beach, Virginia, Industrial Development Authority, Sentara Health Systems, 5.25%, 11/1/09, Callable 11/1/08 @ 101, MBIA		1,000,000		1,045,080
Transportation (4.4%)
Fairfax County, Virginia, Economic Development Authority, 1st Series, 5.25%, 9/1/10, Callable 9/1/09 @ 102		1,000,000		1,068,600
Virginia Commonwealth Transportation Board, 5.75%, 5/15/09		1,035,000		1,098,383
Virginia Commonwealth Transportation Board, 5.50%, 5/15/15, Callable 5/15/09 @ 101		1,185,000		1,260,035
				3,427,018
Utilities (22.1%)
Chesterfield County, Virginia, Pollution Control Authority, 5.50%, 10/1/09, Callable 11/8/06 @ 101		2,500,000		2,545,899

Continued

35

Virginia Intermediate Tax-Free Fund

Schedule of Portfolio Investments, continued March 31, 2006

(Unaudited)

	Principal Amount		Fair Value
Municipal Bonds, continued
Utilities, continued
Henrico County, Virginia, Water & Sewer, 5.25%, 5/1/11, Callable 5/1/09 @ 102	$	1,310,000	$	1,390,421
Leesburg, Virginia, Public Utility, 4.00%, 7/1/16, MBIA		2,105,000		2,083,949
Leesburg, Virginia, Public Utility, 5.00%, 7/1/22, Callable 7/1/16 @ 100		1,200,000		1,274,076
Loudoun County, Virginia, Water & Sewer, 5.75%, 1/1/11, FSA		1,000,000		1,086,670
Loudoun County, Virginia, Water & Sewer, 5.00%, 1/1/29, Callable 1/1/15 @ 100		1,675,000		1,742,285
Norfolk, Virginia, Water Revenue, 5.125%, 11/1/11, Callable 11/1/08 @ 101, FSA		1,030,000		1,075,784
Prince William County, Virginia, Service Authority Water & Sewer System Revenue, 5.00%, 7/1/14, Callable 7/1/13 @ 102		1,000,000		1,070,350
Upper Occoquan Sewer Authority, Regional Sewer Revenue, Refunding Bonds, 5.00%, 7/1/25, Callable 7/1/15 @ 100, FSA		1,000,000		1,049,000
Virginia Resources Authority Infrastructure Revenue, Pooled Financing Program, Series C, 4.75%, 11/1/35, Callable 11/1/15 @ 100		965,000		974,592
Virginia Resources Authority Infrastructure Revenue, Pooled Financing Program, Series C, 5.00%, 11/1/18, Callable 11/1/15 @ 100		1,415,000		1,505,801
Virginia State Authority, Water Revenue, 5.25%, 10/1/15		1,220,000		1,335,510
				17,134,337
				74,113,872

	Shares or Principal Amount		Fair Value
Municipal Bonds, continued
Washington, D.C. (2.2%)
Transportation (2.2%)
Washington, D.C., Metropolitan Transportation Authority, 6.00%, 7/1/09, FGIC	$	1,600,000	$	1,714,656
Total Municipal Bonds (Cost $74,163,719)				75,828,528
Investment Company (1.4%)
PNC Virginia Blackrock Fund, Institutional Class		1,063,314		1,063,314
Total Investment Company (Cost $1,063,314)				1,063,314
Total Investments (Cost $75,227,033) — 99.0%				76,891,842
Net other assets (liabilities) — 1.0%				742,648
Net Assets — 100.0%			$	77,634,490

See page 47 for footnote legend to the Schedules of Portfolio Investments.

See accompanying notes to the financial statements.

36

West Virginia Intermediate Tax-Free Fund

Schedule of Portfolio Investments March 31, 2006

(Unaudited)

	Principal Amount		Fair Value
Municipal Bonds (98.2%)
West Virginia (98.2%)
Building — Residential/Commercial (4.6%)
Harrison County, West Virginia, Building Commission, 5.15%, 4/1/18, Callable 4/1/08 @ 102, AMBAC	$	1,000,000	$	1,046,890
West Virginia State Building Commission, Series A, 5.25%, 7/1/10, AMBAC		2,000,000		2,115,920
				3,162,810
Economic Development (3.4%)
Ohio County, West Virginia, Commission Tax Increment Revenue, Fort Henry Centre Financing District, Series A, 5.625%, 6/1/34, Callable 12/1/15 @ 100		1,000,000		1,024,410
West Virginia Economic Development Authority Lease Revenue, State Energy Savings Project, 4.50%, 6/1/17, Callable 6/1/15 @ 100		405,000		399,593
West Virginia Economic Development Authority Lease Revenue, State Energy Savings Project, 4.75%, 6/1/21, Callable 6/1/15 @ 100		935,000		939,086
				2,363,089
Education (16.7%)
Fairmont State College, West Virginia, 5.00%, 6/1/32, Callable 6/1/13 @ 100, FGIC		1,500,000		1,542,645
Fairmont State College, West Virginia, 5.00%, 6/1/32, Callable 6/1/13 @ 100		1,500,000		1,542,645
West Virginia Higher Education Policy Commission Revenue, Higher Education Facilites, Series B, 5.00%, 4/1/20, Callable 4/1/14 @ 100, FGIC		1,000,000		1,049,030
West Virginia Higher Education Policy Commission Revenue, Higher Education Facilities, Series B, 5.00%, 4/1/18, Callable 4/1/14 @ 100, FGIC		2,325,000		2,450,271
West Virginia Higher Education, Series B, 5.00%, 4/1/14, FGIC		750,000		800,918
West Virginia University Revenues, West Virginia University Improvement Project, Series C, 5.00%, 10/1/25, Callable 10/1/14 @ 100, FGIC		2,420,000		2,525,536
West Virginia University, Series A, 5.50%, 4/1/11, MBIA		1,485,000		1,602,137
				11,513,182
General Obligation (11.8%)
Ohio County, West Virginia, Board of Education, 5.00%, 6/1/13, Callable 6/1/08 @ 102, MBIA		800,000		834,528
Ohio County, West Virginia, Board of Education, 5.50%, 6/1/14, MBIA West Virginia State, 5.50%, 6/1/10, FSA		880,000 1,500,000		971,590 1,603,410
West Virginia State, State Road Improvements, 5.00%, 6/1/16, Callable 6/1/15 @ 100, FGIC		2,000,000		2,130,300
West Virginia State, State Road Improvements, 5.00%, 6/1/18, Callable 6/1/15 @ 100, FGIC		1,000,000		1,069,981

	Principal Amount		Fair Value
Municipal Bonds, continued
West Virginia, continued
General Obligation, continued
Wheeling, West Virginia, Tax Incremental, Stone Building Renovation, Project A, 4.75%, 6/1/15, Callable 6/1/11 @ 102	$	500,000	$	490,145
Wheeling, West Virginia, Tax Incremental, Stone Building Renovation, Project A, 5.20%, 6/1/25, Callable 6/1/11 @ 102		500,000		493,400
Wheeling, West Virginia, Tax Incremental, Stone Building Renovation, Project A, 5.50%, 6/1/33, Callable 6/1/11 @ 102		500,000		495,085
				8,088,439
Health Care (14.9%)
Logan County, West Virginia, Logan County Health, 8.00%, 12/1/16		690,000		893,495
Monongalia County Building Commission Hospital Revenue, Monongalia General Hopsital, Series A, 5.00%, 7/1/30, Callable 7/1/15 @ 100		695,000		689,155
Monongalia County Building Commission Hospital Revenue, Mononglia General Hospital, Series A, 5.25%, 7/1/35, Callable 7/1/15 @ 100		1,000,000		1,013,300
South Charleston, West Virginia, 5.50%, 10/1/09, Callable 10/1/06 @ 100, MBIA		520,000		522,413
Weirton, West Virginia, Municipal Hospital Building, Series A, 5.25%, 12/1/11 (d)		2,580,000		2,613,979
West Virginia State Hospital Finance Authority, 5.00%, 8/1/09, Callable 8/1/07 @ 100, FSA		800,000		811,984
West Virginia State Hospital Finance Authority, 6.00%, 9/1/12, Callable 9/1/10 @ 101		590,000		633,837
West Virginia State Hospital Finance Authority, Series A, 6.50%, 9/1/16		620,000		732,635
West Virginia State Hospital Finance Authority, 6.10%, 1/1/18, Callable 6/15/06 @ 100, MBIA		1,300,000		1,336,023
West Virginia State Hospital Finance Authority, 5.50%, 3/1/22, Callable 3/1/14 @ 100		970,000		1,009,702
				10,256,523
Housing (3.9%)
Cabell, Putnam & Wayne Counties, West Virginia, Single Family Residential Mortgage, 7.375%, 4/1/11, FGIC		640,000		736,077
Webster County, West Virginia, Housing Development Corporate Mortgage, 6.50%, 4/1/18, Callable 10/1/06 @ 100, FHA		1,010,000		1,019,141
West Virginia Housing Development Fund, Marion Unity Apartments Project, Series A, 5.40%, 1/1/16, Callable 7/1/11 @ 100		400,000		398,528
West Virginia Housing Development Fund, Marion Unity Apartments Project, Series A, 5.75%, 1/1/29, Callable 7/1/11 @ 100		515,000		511,714
				2,665,460
Pollution Control (6.0%)
Monongalia County, West Virginia, Pollution Control, 5.95%, 4/1/13, Callable 4/1/06 @ 100, MBIA (d)		2,000,000		2,007,280

Continued

37

West Virginia Intermediate Tax-Free Fund

Schedule of Portfolio Investments, continued March 31, 2006

(Unaudited)

	Principal Amount		Fair Value
Municipal Bonds, continued
West Virginia, continued
Pollution Control, continued
Pleasants County, West Virginia, Pollution Control, Series C, 6.15%, 5/1/15, Callable 5/1/06 @ 101	$	1,000,000	$	1,010,850
Pleasants County, West Virginia, Pollution Control, Series C, 6.15%, 5/1/15, Callable 5/1/06 @ 101		1,100,000		1,111,935
				4,130,065
Transportation (16.1%)
Charleston, West Virginia, Urban Renewal Authority, 5.25%, 12/15/18, Callable 12/15/09 @ 103, FSA		1,060,000		1,135,324
West Virginia Economic Development Authority, Series A, 5.50%, 6/1/12, MBIA		2,000,000		2,177,780
West Virginia Economic Development Authority, Series A, 5.50%, 6/1/15, Callable 6/1/12 @ 101, MBIA		1,000,000		1,090,590
West Virginia Economic Development Authority, Series A, 5.00%, 10/1/15, Callable 10/1/11 @ 101		1,250,000		1,312,675
West Virginia Economic Development Authority, 5.50%, 6/1/18, Callable 6/1/12 @ 101, MBIA		1,000,000		1,086,760
West Virginia Economic Development, Department of Environmental Protection, 4.75%, 11/1/11		535,000		559,706
West Virginia State Parkways Economic Development & Tourism Authority, 5.00%, 5/15/10, FGIC		1,805,000		1,894,095
West Virginia State Parkways Economic Development & Tourism Authority, 5.25%, 5/15/12, FGIC		1,000,000		1,074,990
West Virginia State Parkways Economic Development & Tourism Authority, 5.25%, 5/15/17, FGIC		700,000		765,590
				11,097,510

	Shares or Principal Amount		Fair Value
Municipal Bonds, continued
West Virginia, continued
Utilities (20.8%)
Clarksburg, West Virginia Water, 5.25%, 9/1/19, Callable 9/1/12 @ 101, FGIC	$	1,225,000	$	1,318,014
Farimont, West Virginia, Waterworks, 5.375%, 7/1/13, Callable 7/1/07 @ 102, MBIA		680,000		706,479
Harrison County, West Virginia, County Commission Solid Waste Disposal, 6.30%, 5/1/23, Callable 5/1/07 @ 100, AMBAC		860,000		861,883
Parkersburg West Virginia Waterworks & Sewage System Revenue, Refunding Bonds, Series C, 4.00%, 9/1/16, Callable 9/1/15 @ 100, FGIC (f)		1,015,000		1,008,839
Parkersburg, West Virginia, Waterworks & Sewer Systems, 5.80%, 9/1/19, Callable 9/1/06 @ 102, FSA (d)		2,660,000		2,737,752
West Virginia State Water Development Authority, Series A, 5.00%, 11/1/44, Callable 11/1/15 @ 100, FSA		2,000,000		2,063,080
West Virginia State Water Development Authority, 5.125%, 11/1/24, Callable 11/1/15 @ 100, AMBAC		2,165,000		2,299,274
West Virginia State Water Development Authority, Series A, 5.50%, 11/1/18, Callable 11/1/09 @ 102, AMBAC		1,000,000		1,078,100
West Virginia Water Development Authority, 5.00%, 10/1/28, Callable 10/1/13 @ 101		2,115,000		2,204,190
				14,277,611
Total Municipal Bonds (Cost $66,697,782)				67,554,689
Investment Company (3.1%)
Federated Tax-Free Obligations Fund, Institutional Service Class		2,138,002		2,138,002
Total Investment Company (Cost $2,138,002)				2,138,002
Total Investments (Cost $68,835,784) — 101.3%				69,692,691
Net other assets (liabilities) — (1.3)%				(881,850	)
Net Assets — 100.0%			$	68,810,841

See page 47 for footnote legend to the Schedules of Portfolio Investments.

See accompanying notes to the financial statements.

38

Prime Money Market Fund

Schedule of Portfolio Investments March 31, 2006

(Unaudited)

	Principal Amount		Amortized Cost
Certificates of Deposit (11.2%)
Banking (11.2%)
Barclays Bank PLC, 4.75%, 10/17/06	$	5,000,000	$	5,000,067
Calyon Bank, Paris, 3.95%, 7/14/06		7,000,000		7,000,000
Citibank NA, 4.805%, 6/6/06		2,000,000		2,000,000
Credit Suisse, Zurich, 4.775%, 10/27/06		14,000,000		14,000,000
Credit Suisse, Zurich, 4.92%, 2/5/07		5,000,000		5,000,000
Credit Suisse, Zurich, 5.205%, 3/29/07		5,000,000		5,000,000
Depfa Bank PLC, 4.69%, 7/17/06		4,000,000		4,000,000
Deutsche Bank AG, 4.50%, 10/13/06		6,000,000		6,000,000
Royal Bank of Canada, Montreal, 4.71%, 5/22/06		5,000,000		5,000,035
Royal Bank of Scotland PLC, Edinburgh, 4.40%, 10/4/06		5,000,000		4,999,938
Svenska Handelsbanken, Stockholm, 3.885%, 7/5/06		5,000,000		5,000,063
Svenska Handelsbanken, Stockholm, 4.045%, 7/26/06		4,000,000		4,000,062
Washington Mutual Bank, 4.80%, 5/8/06		25,000,000		25,000,000
Washington Mutual Bank, 4.79%, 5/9/06		10,000,000		10,000,000
Wilmington Trust Co., 4.59%, 4/3/06		25,000,000		25,000,000
Wilmington Trust Co., 4.815%, 6/1/06		5,000,000		4,999,864
Total Certificates of Deposit (Amortized Cost $132,000,029)				132,000,029
Commercial Paper** (26.1%)
Energy (0.2%)
Conocophillips, 4.86%, 4/24/06 (c)		2,100,000		2,093,506
Financial Services (22.9%)
Aspen Funding Corp., 4.63%, 5/3/06 (c)		25,000,000		24,898,222
Aspen Funding Corp., 4.91%, 6/26/06 (c)		5,000,000		4,942,069
Blue Spice LLC, 4.91%, 6/22/06 (c)		5,000,000		4,944,764
CIT Group, Inc., 4.66%, 5/1/06		5,000,000		4,980,792
Compass Securitization LLC, 4.64%, 4/20/06 (c)		15,000,000		14,963,583
Compass Securitization LLC, 4.70%, 5/15/06 (c)		5,000,000		4,971,583
Countrywide Home Loans, Inc., 4.81%, 5/9/06		10,000,000		9,949,544
Daimler Chrysler NA Holding Corp., 4.73%, 4/3/06		1,500,000		1,499,608
Daimler Chrysler NA Holding Corp., 4.77%, 4/12/06		4,300,000		4,293,759
Daimler Chrysler NA Holding Corp., 4.91%, 4/25/06		5,900,000		5,880,766
FCAR Auto Loan Trust, Series I, 4.82%, 5/8/06		15,000,000		14,926,154
FCAR Auto Loan Trust, Series I, 4.80%, 5/15/06		25,000,000		24,854,556
FCAR Auto Loan Trust, Series II, 4.92%, 6/26/06		10,000,000		9,883,900
FCAR Auto Loan Trust, Series II, 4.70%, 7/17/06		3,500,000		3,452,147
Fountain Square Commercial Funding Corp., 4.67%, 5/9/06 (c)		2,000,000		1,990,247
Galaxy Funding, Inc., 4.50%, 4/10/06 (c)		3,000,000		2,996,663
Grampian Funding LLC, 4.71%, 5/17/06 (c)		2,000,000		1,988,117
Grampian Funding LLC, 4.75%, 5/22/06 (c)		5,000,000		4,966,779

	Principal Amount		Amortized Cost
Commercial Paper, continued
Financial Services, continued
Grampian Funding LLC, 4.67%, 7/11/06 (c)	$	3,000,000	$	2,961,620
Grampian Funding LLC, 4.70%, 7/21/06 (c)		3,000,000		2,957,543
John Deere Capital Corp., 4.82%, 5/8/06		6,000,000		5,970,462
John Deere Capital Corp., 4.90%, 5/9/06		2,300,000		2,288,177
Paradigm Funding LLC, 4.77%, 5/15/06 (c)		10,000,000		9,943,007
Perry Global Funding LLC, Series A, 4.59%, 4/4/06 (c)		20,000,000		19,992,400
Picaros Funding LLC, 4.59%, 4/6/06 (c)		20,000,000		19,987,333
Picaros Funding LLC, 4.72%, 4/13/06 (c)		10,000,000		9,984,333
Picaros Funding LLC, 4.64%, 4/18/06 (c)		15,000,000		14,967,417
Picaros Funding LLC, 4.71%, 5/10/06 (c)		2,000,000		1,989,903
Sigma Finance, Inc., 4.59%, 5/17/06 (c)		3,000,000		2,982,654
Ticonderoga Funding LLC, 4.80%, 4/27/06 (c)		20,000,000		19,930,956
Volksvagen of America, Inc., 4.86%, 4/28/06 (c)		10,000,000		9,963,700
				270,302,758
Retail (3.0%)
Federated Retail Holdings, Inc., 4.76%, 4/10/06 (c)		7,800,000		7,790,757
Fortune Brands, Inc., 4.75%, 4/20/06 (c)		9,100,000		9,077,379
Fortune Brands, Inc., 4.76%, 4/25/06 (c)		700,000		697,797
Fortune Brands, Inc., 4.82%, 5/9/06 (c)		1,900,000		1,890,413
General Mills, Inc., 4.86%, 4/18/06 (c)		3,500,000		3,491,984
Safeway, Inc., 4.97%, 4/3/06 (c)		800,000		799,779
Whirlpool Corp., 4.74%, 4/7/06		1,300,000		1,298,977
Whirlpool Corp., 4.86%, 4/10/06		5,000,000		4,993,938
Whirlpool Corp., 4.86%, 4/26/06		3,000,000		2,989,917
Whirlpool Corp., 4.89%, 5/1/06		2,400,000		2,390,260
				35,421,201
Total Commercial Paper** (Amortized Cost $307,817,465)				307,817,465
Corporate Bonds (4.7%)
Asset Backed Securities (2.3%)
Capital Auto Receivables Asset Trust, Series 2006-1, Class A1, 4.64%, 2/15/07 (c)		3,116,715		3,116,715
Carmax Auto Owner Trust, Series 2005-2, Class A1, 3.80%, 9/15/06		341,675		341,675
CNH Equipment Trust, Series 2006-A, Class A1, 4.99%, 4/5/07		3,000,000		3,000,000
Daimler Chrysler Auto Trust, Series 2006-A, Class A1, 4.79%, 3/8/07 (c)		5,000,000		4,999,999
Ford Credit Auto Owner Trust, Series 2006-A, Class A1, 4.72%, 11/15/06 (c)		4,889,039		4,889,039
Honda Auto Receivables Owner Trust, Series 2005-6, Class A1, 4.51%, 12/18/06		1,263,939		1,263,939

Continued

39

Prime Money Market Fund

Schedule of Portfolio Investments, continued March 31, 2006

(Unaudited)

	Principal Amount		Amortized Cost
Corporate Bonds, continued
Asset Backed Securities, continued
Hyundai Auto Receivables Trust, Series 2006-A, Class A1, 4.84%, 3/15/07	$	3,000,000	$	3,000,000
USAA Auto Owner Trust, Series 2005-3, Class A1, 4.17%, 11/9/06		828,975		828,975
USAA Auto Owner Trust, Series 2005-4, Class A1, 4.40%, 12/15/06		3,823,388		3,823,388
World Omni Auto Receivables Trust, Series 2006-A, Class A1, 4.85%, 3/15/07		2,000,000		2,000,000
				27,263,730
Financial Services (1.8%)
Beta Finance, Inc., 4.01%, 7/25/06 (c)		3,000,000		3,000,000
Countrywide Home Loans, Inc., 4.80%, 4/21/06		1,000,000		1,000,000
Sigma Finance, Inc., 4.15%, 8/8/06 (c)		4,000,000		4,000,000
Sigma Finance, Inc., 4.91%, 1/26/07 (c)		3,000,000		3,000,000
Sigma Finance, Inc., 4.83%, 1/30/07 (c)		3,000,000		3,000,000
Sigma Finance, Inc., 5.00%, 3/8/07 (c)		4,000,000		4,000,000
Sigma Finance, Inc., 5.25%, 4/30/07 (c)		3,000,000		3,000,000
				21,000,000
Financial, Speciality (0.6%)
K2 (USA) LLC, 5.00%, 3/12/07 (c)		6,700,000		6,700,000
Total Corporate Bonds (Amortized Cost $54,963,730)				54,963,730
Variable Rate Notes* (34.2%)
Banking (2.9%)
Barclays Bank PLC, 4.76%, 4/27/06		4,000,000		3,999,305
Credit Suisse, Zurich, 4.93%, 6/29/06		13,000,000		13,000,000
Fairway Finance Co., 4.73%, 4/20/06 (c)		12,000,000		11,999,737
Union Hamilton Special Purpose Funding LLC, Series 2005-1, 4.93%, 6/21/06 (c)		5,000,000		5,000,000
				33,999,042
Banking & Financial Services (14.8%)
Anchor Holdings, 4.82%, 4/6/06, (LCD U.S. Bank NA)		1,800,000		1,800,000
Bartlett, Illinois, Redevelopement Project, 4.98%, 4/5/06, (LCD LaSalle Bank)		5,000,000		5,000,000
Christian Life Assembly of the Assemblies of God, 4.97%, 4/6/06, (LCD Fulton Bank)		3,265,000		3,265,000
Damascus Company, Series 1998, 4.99%, 4/6/06		3,325,000		3,325,000
Depfa Bank PLC, Series EXL, 4.92%, 6/15/06 (c)		15,000,000		15,000,000
Franklin County, Ohio, Edison Welding, Series 1995, 4.95%, 4/6/06, (LCD Huntington Bank)		5,130,000		5,130,000
Guilford Capital LLC, Series 2002-A, 5.00%, 4/6/06, (LCD Regions Bank)		1,620,000		1,620,000
H.C. Equities, 4.83%, 4/6/06, (LCD Wachovia Bank NA)		4,910,000		4,910,000
HBOS Treasury Services PLC, 4.68%, 4/3/06		23,300,000		23,300,000

	Principal Amount		Amortized Cost
Variable Rate Notes, continued
Banking & Financial Services, continued
HBOS Treasury Services PLC, Series MTN, 4.54%, 4/10/06 (c)	$	2,000,000	$	2,000,000
HBOS Treasury Services PLC, 4.84%, 5/22/06 (c)		8,000,000		8,000,000
HBOS Treasury Services PLC, 5.00%, 6/24/06		10,000,000		10,000,000
Indian Hills Country Club, 4.91%, 4/6/06, (LCD Amsouth Bank NA, Birmingham)		3,785,000		3,785,000
Kent Capital LLC, Series 1999, 5.08%, 4/6/06, (LCD Huntington Bank)		5,285,000		5,285,000
Maryland Economic Development Corp., 4.91%, 4/4/06, (LCD Manufacturers & Traders Trust Co.)		7,000,000		7,000,000
Monet Trust, Series 2001, Class A-2A, 5.03%, 6/28/06, (SWP Dresden Bank AG) (c)(e)		30,000,000		29,999,999
New Keibler Thompson Co., 4.93%, 4/7/06, (LCD Manufacturers & Traders Trust Co.)		5,930,000		5,930,000
Quality Synthetic Rubber Co., 4.82%, 4/6/06, (LCD U.S. Bank NA)		430,000		430,000
Spira Millenium LLC, 4.90%, 4/6/06, (LCD Bank of America)		3,705,000		3,705,000
Stone Creek LLC, 4.83%, 4/6/06, (LCD Columbus Bank and Trust Co.)		14,485,000		14,485,000
TOG Properties, Inc., 4.91%, 4/6/06, (LCD AmSouth Bank)		7,310,000		7,310,000
Vestavia Hills Baptist, 4.91%, 4/6/06, (LCD Amsouth Bank NA)		3,000,000		3,000,000
Wells Fargo & Co., 4.68%, 4/3/06		6,000,000		6,000,000
World Wildlife Fund, Inc., 4.83%, 4/6/06, (AMBAC Financial Group, Inc.)		4,800,000		4,800,000
				175,079,999
Brokers & Dealers (8.6%)
Goldman Sachs Group Inc., 4.67%, 4/3/06		13,000,000		13,002,968
Goldman Sachs Group, Inc., 4.64%, 4/7/06		5,000,000		5,000,000
Goldman Sachs Group, Inc., 4.72%, 4/10/06 (e)		5,000,000		5,000,000
Goldman Sachs Group, Inc., 4.77%, 4/17/06 (c)		5,000,000		5,000,338
Greenwich Capital Holdings, 4.65%, 4/10/06		2,000,000		2,000,000
Greenwich Capital Holdings, 4.68%, 4/13/06		6,000,000		6,000,000
Greenwich Capital Holdings, 4.74%, 4/21/06 (c)		5,000,000		5,000,000
Greenwich Capital Holdings, 4.78%, 4/28/06		15,000,000		15,000,001
Merrill Lynch & Company, Inc., 4.72%, 4/4/06		10,000,000		10,000,000
Merrill Lynch & Company, Inc., 4.92%, 4/11/06 (c)		12,000,000		12,000,000
Morgan Stanley, Series EXLS, 4.66%, 4/3/06		10,000,000		10,000,000

Continued

40

Prime Money Market Fund

Schedule of Portfolio Investments, continued March 31, 2006

(Unaudited)

	Principal Amount		Amortized Cost
Variable Rate Notes, continued
Brokers & Dealers, continued
Morgan Stanley, 4.96%, 4/3/06	$	2,000,000	$	2,000,000
Morgan Stanley, 4.72%, 4/4/06		5,000,000		5,000,000
Morgan Stanley, 4.89%, 4/27/06		7,000,000		7,000,000
				102,003,307
Financial Services (4.8%)
Compass Securitization LLC, 4.65%, 4/10/06 (c)		10,000,000		9,999,863
General Electric Capital Corp., 4.67%, 4/10/06 (c)		7,000,000		7,000,000
General Electric Capital Corp., 4.85%, 4/17/06 (c)		7,000,000		7,000,000
Paradigm Funding LLC, 4.63%, 4/7/06 (c)		7,000,000		7,000,000
Paradigm Funding LLC, 4.78%, 4/27/06 (c)		8,000,000		8,000,000
Sigma Finance, Inc., 4.70%, 4/12/06 (c)		6,000,000		5,999,982
Westpac Banking Corp., 4.72%, 4/18/06 (c)		12,000,000		12,000,000
				56,999,845
Financial, Speciality (0.8%)
K2 (USA) LLC, 4.65%, 4/10/06 (c)		10,000,000		9,999,134
Insurance (2.3%)
Genworth Life Insurance Co., 4.81%, 5/9/06 (e)		5,000,000		5,000,000
Jackson National Life Insurance Co., 4.73%, 4/3/06 (e)		2,000,000		2,000,000
MBIA Global Funding LLC, 4.93%, 6/16/06 (c)		5,000,000		5,000,328
Metropolitan Life Insurance Co., 4.80%, 5/1/06 (e)		5,000,000		5,000,000
New York Life Insurance Co., 4.92%, 6/1/06 (e)		5,000,000		5,000,000
Travelers Insurance Co., 4.86%, 5/22/06 (e)		5,000,000		5,000,000
				27,000,328
Total Variable Rate Notes* (Amortized Cost $405,081,655)				405,081,655
Collateralized Loan Agreements (17.7%)
Goldman Sachs Group, Inc., 4.945%, dated 3/31/06, maturing 4/3/06, with a maturity value of $22,009,066 (Collateralized fully by various U.S. Government Agencies)		22,000,000		22,000,000
Westdeutsche Landesbank Girozentrale, NY, 4.975%, dated 3/31/06, maturing 4/3/06, with a maturity value of $20,008,292 (Collateralized fully by various U.S. Government Agencies)		20,000,000		20,000,000

	Principal Amount		Amortized Cost
Collateralized Loan Agreements, continued
Citigroup Global Markets, Inc., 4.975%, dated 3/31/06, maturing 4/3/06, with a maturity value of $55,022,802 (Collateralized fully by various U.S. Government Agencies)	$	55,000,000	$	55,000,000
J.P. Morgan Securities, Inc., 4.985%, dated 3/31/06, maturing 4/3/06, with a maturity value of $10,004,154 (Collateralized fully by various U.S. Government Agencies)		10,000,000		10,000,000
Bear Stearns Cos., Inc., 4.995%, dated 3/31/06, maturing 4/3/06, with a maturity value of $25,010,406 (Collateralized fully by various U.S. Government Agencies)		25,000,000		25,000,000
First Boston, 4.995%, dated 3/31/06, maturing 4/3/06, with a maturity value of $15,006,244 (Collateralized fully by various U.S. Government Agencies)		15,000,000		15,000,000
Greenwhich Capital Markets, Inc., 5.00%, dated 3/31/06, maturing 4/3/06, with a maturity value of $22,009,167 (Collateralized fully by various U.S. Government Agencies)		22,000,000		22,000,000
Lehman Brothers Holdings, Inc., 5.025%, dated 3/31/06, maturing 4/3/06, with a maturity value of $20,008,375 (Collateralized fully by various U.S. Government Agencies)		20,000,000		20,000,000
Merrill Lynch, 4.91%, dated 3/31/06, maturing 4/3/06, with a maturity value of $20,008,183 (Collateralized fully by various U.S. Government Agencies)		20,000,000		20,000,000
Total Collateralized Loan Agreements (Amortized Cost $209,000,000)				209,000,000
Repurchase Agreement (6.3%)
Bank of America Securities, 4.84%, dated 3/31/06, maturing 4/3/06, with a maturity value of $74,438,011 (Collateralized fully by various U.S. Government Agencies)		74,408,000		74,408,000
Total Repurchase Agreement (Amortized Cost $74,408,000)				74,408,000
Total Investments (Amortized Cost $1,183,270,879) — 100.2%				1,183,270,879
Net other assets (liabilities) — (0.2)%				(2,868,704	)
Net Assets — 100.0%			$	1,180,402,175

See page 47 for footnote legend to the Schedules of Portfolio Investments.

See accompanying notes to the financial statements.

41

U.S. Treasury Money Market Fund

Schedule of Portfolio Investments March 31, 2006

(Unaudited)

	Principal Amount		Amortized Cost
U.S. Treasury Notes (15.2%)
2.25%, 4/30/06	$	20,000,000	$	19,965,466
2.00%, 5/15/06		40,000,000		39,880,899
2.50%, 5/31/06		20,000,000		19,933,388
2.75%, 7/31/06		20,000,000		19,874,718
Total U.S. Treasury Notes (Amortized Cost $99,654,471)				99,654,471
U.S. Treasury Bills** (34.9%)
4.38%, 4/6/06		100,000,000		99,939,375
4.07%, 4/20/06		50,000,000		49,893,964
4.52%, 6/15/06		20,000,000		19,814,542
4.62%, 7/20/06		20,000,000		19,722,403
4.66%, 8/17/06		20,000,000		19,649,633
4.68%, 8/31/06		20,000,000		19,612,400
Total U.S. Treasury Bills** (Amortized Cost $228,632,317)				228,632,317
Repurchase Agreement (50.1%)
Bank of America, 4.48%, dated 3/31/06, maturing 4/3/06, with a maturity value of $116,043,307 (Collateralized fully by U.S. Treasury Notes)		116,000,000		116,000,000
First Boston, 4.45%, dated 3/31/06, maturing 4/3/06, with a maturity value of $117,539,850 (Collateralized fully by U.S. Treasury Notes)		117,496,279		117,496,279
Goldman Saches Group, 4.44%, dated 3/31/06, maturing 4/3/06, with a maturity value of $70,025,900 (Collateralized fully by U.S. Treasury Notes)		70,000,000		70,000,000
Lehman Brothers, 4.50%, dated 3/31/06, maturing 4/3/06, with a maturity value of $25,009,375 (Collateralized fully by U.S. Treasury Notes)		25,000,000		25,000,000
Total Repurchase Agreement (Amortized Cost $328,496,279)				328,496,279
Total Investments (Amortized Cost $656,783,067) — 100.2%				656,783,067
Net other assets (liabilities) — (0.2)%				(1,021,277	)
Net Assets — 100.0%			$	655,761,790

See page 47 for footnote legend to the Schedules of Portfolio Investments.

See accompanying notes to the financial statements.

42

Capital Manager Conservative Growth Fund

Schedule of Portfolio Investments March 31, 2006

(Unaudited)

	Shares	Fair Value
Affiliated Investment Companies (99.9%)
BB&T International Equity Fund, Institutional Class	474,975	$	5,186,722
BB&T Large Cap Fund, Institutional Class	705,962		13,639,184
BB&T Large Cap Growth Fund, Institutional Class	965,849		9,098,302
BB&T Mid Cap Growth Fund, Institutional Class	112,584		1,661,747
BB&T Mid Cap Value Fund, Institutional Class	188,555		2,487,037
BB&T Small Cap Fund, Institutional Class	168,873		2,674,942
BB&T Total Return Bond Fund, Institutional Class	4,959,447		49,743,255
BB&T U.S. Treasury Money Market Fund, Institutional Class	2,772,726		2,772,726
Total Affiliated Investment Companies (Cost $81,074,209)			87,263,915
Total Investments (Cost $81,074,209) — 99.9%			87,263,915
Net other assets (liabilities) — 0.1%			68,544
Net Assets — 100.0%		$	87,332,459

See page 47 for footnote legend to the Schedules of Portfolio Investments.

See accompanying notes to the financial statements.

43

Capital Manager Moderate Growth Fund

Schedule of Portfolio Investments March 31, 2006

(Unaudited)

	Shares	Fair Value
Affiliated Investment Companies (100.0%)
BB&T International Equity Fund, Institutional Class	912,084	$	9,959,961
BB&T Large Cap Fund, Institutional Class	1,355,552		26,189,266
BB&T Large Cap Growth Fund, Institutional Class	1,855,184		17,475,837
BB&T Mid Cap Growth Fund, Institutional Class	216,064		3,189,110
BB&T Mid Cap Value Fund, Institutional Class	362,246		4,778,022
BB&T Small Cap Fund, Institutional Class	324,524		5,140,453
BB&T Total Return Bond Fund, Institutional Class	3,289,870		32,997,393
BB&T U.S. Treasury Money Market Fund, Institutional Class	3,330,876		3,330,876
Total Affiliated Investment Companies (Cost $94,175,513)			103,060,918
Total Investments (Cost $94,175,513) — 100.0%			103,060,918
Net other assets (liabilities) — 0.0%			(42,388	)
Net Assets — 100.0%		$	103,018,530

See page 47 for footnote legend to the Schedules of Portfolio Investments.

See accompanying notes to the financial statements.

44

Capital Manager Growth Fund

Schedule of Portfolio Investments March 31, 2006

(Unaudited)

	Shares	Fair Value
Affiliated Investment Companies (101.2%)
BB&T International Equity Fund, Institutional Class	896,241	$	9,786,956
BB&T Large Cap Fund, Institutional Class	1,331,665		25,727,766
BB&T Large Cap Growth Fund, Institutional Class	1,822,496		17,167,915
BB&T Mid Cap Growth Fund, Institutional Class	212,054		3,129,919
BB&T Mid Cap Value Fund, Institutional Class	355,766		4,692,557
BB&T Small Cap Fund, Institutional Class	318,720		5,048,520
BB&T Total Return Bond Fund, Institutional Class	1,395,045		13,992,306
BB&T U.S. Treasury Money Market Fund, Institutional Class	3,621,183		3,621,183
Total Affiliated Investment Companies (Cost $76,608,139)			83,167,122
Total Investments (Cost $76,608,139) — 101.2%			83,167,122
Net other assets (liabilities) — (1.2)%			(1,002,306	)
Net Assets — 100.0%		$	82,164,816

See page 47 for footnote legend to the Schedules of Portfolio Investments.

See accompanying notes to the financial statements.

45

Capital Manager Equity Fund

Schedule of Portfolio Investments March 31, 2006

(Unaudited)

	Shares	Fair Value
Affiliated Investment Companies (101.2%)
BB&T International Equity Fund, Institutional Class	592,175	$	6,466,552
BB&T Large Cap Fund, Institutional Class	880,255		17,006,518
BB&T Large Cap Growth Fund, Institutional Class	1,204,472		11,346,123
BB&T Mid Cap Growth Fund, Institutional Class	140,432		2,072,783
BB&T Mid Cap Value Fund, Institutional Class	235,136		3,101,439
BB&T Small Cap Fund, Institutional Class	210,774		3,338,660
BB&T U.S. Treasury Money Market Fund, Institutional Class	1,955,401		1,955,401
Total Affiliated Investment Companies (Cost $39,776,055)			45,287,476
Total Investments (Cost $39,776,055) — 101.2%			45,287,476
Net other assets (liabilities) — (1.2)%			(555,737	)
Net Assets — 100.0%		$	44,731,739

See page 47 for footnote legend to the Schedules of Portfolio Investments.

See accompanying notes to the financial statements.

46

BB&T Funds

Footnote Legend to the Schedules of Portfolio Investments

(a) Represents non-income producing security.

(b) Represents that all or a portion of the security was on loan as of March 31, 2006.

(c) Rule 144A, Section 4(2) or other security which is restricted as to resale to institutional investors. The Investment Advisor, using board approved procedures, has deemed these securities or a portion of these securities to be liquid.

(d) Represents that all or a portion of the security was pledged as collateral for securities purchased on a when-issued basis.

(e) Rule 144A, Section 4(2) or other security which is restricted as to resale to institutional investors. The Investment Advisor, using board approved procedures, has deemed these securities or a portion of these securities to be illiquid. As of March 31, 2006, these securities represent 2.0% and 4.8% of net assets in the North Carolina Intermediate Tax-Free Fund and the Prime Money Market, respectively.

(f) Represents a security purchased on a when-issued basis. At March 31, 2006, total cost of investments purchased on a when-issued basis for the South Carolina Intermediate Tax-Free Fund, the Total Return Bond Fund and the West Virginia Intermediate Tax-Free Fund was $487,805, $47,141,018 and $1,004,870, respectively.

* The interest rate for this variable rate note, which will change periodically, is based either on the prime rate or an index of market rates. The reflected rate is in effect as of March 31, 2006. For bond funds, the maturity date reflected is the final maturity date. For money market funds, the maturity date reflected is the next reset date.

** Discount Note. Rate disclosed represents the effective yield at March 31, 2006.

ADR — American Depositary Receipt.

AMBAC — Insured by AMBAC Indemnity Corp.

AMBAC-TCRS — Secondarily Insured by AMBAC Indemnity Corp.

CMO — Collateralized Mortgage Obligation.

ETM — Escrowed to Maturity.

FGIC — Insured by the Financial Guaranty Insurance Corp.

FHA — Insured by the Federal Housing Administration.

FSA — Insured by Financial Security Assurance.

GTY AGMT — Insured through Guaranty Agreement.

LCD — Letter of Credit.

LLC — Limited Liability Company.

MBIA — Insured by the Municipal Bond Insurance Association.

NA — North America.

OID — Original Issue Discount.

REIT — Real Estate Investment Trust.

SCSDE — South Carolina School District Enhancement.

XLCA — Insured by XL Capital Assurance.

See accompanying notes to the financial statements.

47

BB&T Funds

Statements of Assets and Liabilities

(Unaudited) March 31, 2006

	Large Cap Fund			Large Cap Growth Fund
Assets:
Investments, at cost	$	673,519,279		$	442,968,293
Unrealized appreciation (depreciation)		187,341,945			50,778,450
Investments, at fair value*		860,861,224			493,746,743
Repurchase agreements, at cost		20,188,220			8,403,908
Cash		—			—
Foreign currency, at value**		—			—
Interest and dividends receivable		1,209,224			295,020
Receivable for capital shares issued		969,256			516,594
Receivable for investments sold		—			3,756,765
Receivable for forward foreign currency contracts		—			—
Reclaims receivable		—			—
Prepaid expenses		15,838			7,779
Total Assets		883,243,762			506,726,809
Liabilities:
Covered options written (premiums received $0; $0; $0; $0; $0; $0; $189,359; $164,669)		—			—
Cash overdraft		—			—
Dividends payable		400,817			304,449
Payable for forward foreign currency contracts		—			—
Payable for investments purchased		—			8,369,520
Payable for capital shares redeemed		562,222			215,272
Payable for collateral received on loaned securities		169,698,443			113,502,460
Accrued expenses and other payables:
Investment advisory fees		423,653			228,381
Administration fees		68,707			37,083
Fund accounting fees		6,215			3,420
Transfer agency fees		11,633			6,682
Distribution fees		26,808			11,999
Compliance service fees		987			531
Other		72,483			41,444
Total Liabilities		171,271,968			122,721,241
Net Assets:
Capital		504,028,629			345,027,387
Accumulated undistributed net investment income (loss)		232,690			(16,797	)
Accumulated realized gains/(losses) from investment and foreign currency transactions		20,368,530			(11,783,472	)
Net unrealized appreciation/depreciation on investments and translation of assets and liabilities in foreign currency		187,341,945			50,778,450
Net Assets	$	711,971,794		$	384,005,568
Net Assets
Class A Shares	$	43,396,194		$	9,098,013
Class B Shares		20,383,769			11,761,293
Class C Shares		153,367			19,065
Institutional Shares		648,038,464			363,127,197
Total	$	711,971,794		$	384,005,568
Outstanding Units of Beneficial Interest (Shares)
Class A Shares		2,252,239			981,585
Class B Shares		1,067,431			1,348,373
Class C Shares		8,045			2,185
Institutional Shares		33,549,823			38,548,325
Total		36,877,538			40,880,468
Net Asset Value
Class A Shares — redemption price per share	$	19.27		$	9.27
Class B Shares — offering price per share***	$	19.10		$	8.72
Class C Shares — offering price per share***	$	19.06		$	8.73
Institutional Shares — offering and redemption price per share	$	19.32		$	9.42
Maximum Sales Charge — Class A Shares		5.75	%		5.75	%
Maximum Offering Price (100%/100% — Maximum Sales Charge) of net asset value adjusted to the nearest cent per share — Class A Shares	$	20.44		$	9.83

* The Large Cap Fund, Large Cap Growth Fund, Mid Cap Value Fund, Mid Cap Growth Fund and Small Cap Fund include securities on loan of $163,269,303; $109,850,550; $52,195,662; $78,490,751 and $31,842,664 respectively.

** The International Equity Fund includes foreign currency at cost of $1,028,236.

*** Redemption price per share varies by length of time shares are held.

See accompanying notes to the financial statements.

48

Mid Cap Value Fund			Mid Cap Growth Fund			Small Cap Fund			International Equity Fund			Special Opportunities Equity Fund			Equity Income Fund
$	251,406,102		$	195,418,155		$	129,734,506		$	196,854,158		$	136,309,291		$	84,323,193
	17,178,342			47,361,733			22,016,336			64,506,345			31,759,615			11,822,909
	268,584,444			242,779,888			151,750,842			261,360,503			168,068,906			96,146,102
	10,280,821			4,560,002			10,697,121			—			25,627,489			5,659,556
	—			—			—			—			2,352			—
	—			—			—			1,043,027			—			—
	297,153			73,597			79,009			1,043,911			71,982			334,937
	115,991			417,761			55,232			17,775			257,609			104,204
	—			2,019,172			—			—			624,700			647,247
	—			—			—			49,040			—			—
	—			—			—			401,258			—			—
	5,342			3,065			11,176			5,308			10,894			16,877
	279,283,751			249,853,485			162,593,380			263,920,822			194,663,932			102,908,923
	—			—			—			—			179,115			3,100
	—			—			2,521			358,776			—			—
	68,214			198,896			46,699			125,830			—			61,284
	—			—			—			18,172
	1,265,029			4,527,125			468,499			149,802			180,793			401,850
	333,855			220,911			364,132			850,333			242,374			130,801
	54,206,019			80,855,263			32,946,276			—			—			—
	131,747			94,589			86,833			199,098			130,425			60,003
	21,402			15,315			12,180			25,075			18,458			9,668
	2,047			1,515			1,435			4,296			1,791			1,018
	3,794			3,138			4,494			3,279			8,858			3,929
	7,915			4,889			6,423			2,592			62,583			26,708
	304			220			172			347			273			142
	27,479			23,177			3,177			74,248			4,998			2,545
	56,067,805			85,945,038			33,942,841			1,811,848			829,668			701,048
	202,004,706			103,841,618			150,538,438			207,212,252			160,317,703			89,917,988
	106,984			(7,133	)		28,250			(645,980	)		(170,270	)		78,836
	3,925,914			12,712,229			(43,932,485	)		(9,004,820	)		1,916,972			226,573
	17,178,342			47,361,733			22,016,336			64,547,522			31,769,859			11,984,478
$	223,215,946		$	163,908,447		$	128,650,539		$	262,108,974		$	193,834,264		$	102,207,875
$	13,647,528		$	12,007,525		$	9,692,183		$	3,615,470		$	78,349,652		$	50,510,203
	5,366,113			2,886,536			5,316,885			2,061,587			22,632,961			7,657,595
	719,354			46,731			24,320			165,203			32,336,306			11,650,111
	203,482,951			148,967,655			113,617,151			256,266,714			60,515,345			32,389,966
$	223,215,946		$	163,908,447		$	128,650,539		$	262,108,974		$	193,834,264		$	102,207,875
	1,037,886			853,876			614,924			336,085			5,126,171			4,011,600
	415,284			213,038			344,834			202,510			1,514,930			609,230
	55,690			3,448			1,579			16,264			2,163,126			927,383
	15,430,990			10,093,081			7,172,308			23,463,253			3,931,865			2,570,024
	16,939,850			11,163,443			8,133,645			24,018,112			12,736,092			8,118,237
$	13.15		$	14.06		$	15.76		$	10.76		$	15.28		$	12.59
$	12.92		$	13.55		$	15.42		$	10.18		$	14.94		$	12.57
$	12.92		$	13.55		$	15.40		$	10.16		$	14.95		$	12.56
$	13.19		$	14.76		$	15.84		$	10.92		$	15.39		$	12.60
	5.75	%		5.75	%		5.75	%		5.75	%		5.75	%		5.75	%
$	13.95		$	14.92		$	16.72		$	11.41		$	16.22		$	13.36

See accompanying notes to the financial statements.

49

BB&T Funds

Statements of Assets and Liabilities

(Unaudited) March 31, 2006

	Short U.S. Government Fund			Intermediate U.S. Government Fund
Assets:
Investments, at cost	$	205,452,890		$	618,709,822
Unrealized appreciation (depreciation)		(3,131,987	)		(11,904,437	)
Investments, at fair value*		202,320,903			606,805,385
Repurchase agreements, at cost		1,837,041			3,982,915
Interest and dividends receivable		1,233,182			2,848,281
Receivable for capital shares issued		16,580			74,183
Receivable for investments sold		—			—
Prepaid expenses		4,040			10,582
Total Assets		205,411,746			613,721,346
Liabilities:
Dividends payable		222,861			774,485
Payable for investments purchased		—			—
Payable for capital shares redeemed		1,398,374			774,538
Payable for collateral received on loaned securities		66,686,726			155,213,593
Accrued expenses and other payables:
Investment advisory fees		53,675			189,449
Administration fees		14,740			45,030
Fund accounting fees		1,826			4,949
Transfer agency fees		1,492			5,182
Distribution fees		1,504			6,756
Compliance service fees		210			683
Other		10,262			61,599
Total Liabilities		68,391,670			157,076,264
Net Assets:
Capital		146,215,581			476,365,498
Accumulated undistributed net investment income (loss)		(270,187	)		402,962
Accumulated realized gains/(losses) from investment transactions		(5,793,331	)		(8,218,941	)
Net unrealized appreciation/depreciation on investments		(3,131,987	)		(11,904,437	)
Net Assets	$	137,020,076		$	456,645,082
Net Assets
Class A Shares	$	7,046,367		$	10,809,480
Class B Shares		—			4,920,172
Class C Shares		—			222,720
Institutional Shares		129,973,709			440,692,710
Total	$	137,020,076		$	456,645,082
Outstanding Units of Beneficial Interest (Shares)
Class A Shares		748,986			1,105,846
Class B Shares		—			505,005
Class C Shares		—			22,844
Institutional Shares		13,799,286			45,027,712
Total		14,548,272			46,661,407
Net Asset Value
Class A Shares — redemption price per share	$	9.41		$	9.77
Class B Shares — offering price per share**		—		$	9.74
Class C Shares — offering price per share**		—		$	9.75
Institutional Shares — offering and redemption price per share	$	9.42		$	9.79
Maximum Sales Charge — Class A Shares		3.00	%		5.75	%
Maximum Offering Price (100%/100% — Maximum Sales Charge) of net asset value adjusted to the nearest cent per share — Class A Shares	$	9.70		$	10.37

* The Short U.S. Government Fund, Intermediate U.S. Government Fund, and Total Return Bond Fund include securities on loan of $65,298,648; $151,810,794 and $139,383,711; respectively.

** Redemption price per share varies by length of time shares are held.

See accompanying notes to the financial statements.

50

Total Return Bond Fund			Kentucky Intermediate Tax-Free Fund			Maryland Intermediate Tax-Free Fund			North Carolina Intermediate Tax-Free Fund			South Carolina Intermediate Tax-Free Fund			Virginia Intermediate Tax-Free Fund
$	714,232,426		$	15,371,598		$	10,697,446		$	111,452,351		$	20,341,051		$	75,227,033
	(10,425,516	)		20,890			(9,964	)		1,587,558			227,379			1,664,809
	703,806,910			15,392,488			10,687,482			113,039,909			20,568,430			76,891,842
	8,029,771			—			—			—			—			—
	3,735,719			216,387			109,600			1,581,750			202,174			966,303
	1,928,192			—			70,000			—			13,000			25,000
	54,197			63,299			117,377			456,783			26,291			20,258
	8,275			260			171			1,946			653			2,648
	717,563,064			15,672,434			10,984,630			115,080,388			20,810,548			77,906,051
	1,140,812			39,538			25,880			295,782			50,089			224,427
	61,009,525			—			268,417			258,535			487,805			—
	433,992			48,000			29,472			71,890			12,962			—
	142,805,013			—			—			—			—			—
	208,060			5,579			2,778			43,797			7,412			30,021
	48,920			1,575			1,052			11,061			1,958			7,633
	5,188			995			1,004			2,147			731			1,516
	5,391			191			125			1,197			239			812
	6,555			559			353			4,700			885			2,553
	702			24			15			162			29			113
	1,747			1,794			1,494			12,915			201			4,486
	205,665,905			98,255			330,590			702,186			562,311			271,561
	526,677,101			15,609,755			10,869,537			112,733,860			19,970,405			76,040,979
	(2,075	)		1,360			(466	)		86,298			15,954			77,333
	(4,352,351	)		(57,826	)		(205,067	)		(29,514	)		34,499			(148,631	)
	(10,425,516	)		20,890			(9,964	)		1,587,558			227,379			1,664,809
$	511,897,159		$	15,574,179		$	10,654,040		$	114,378,202		$	20,248,237		$	77,634,490
$	6,398,538		$	2,590,500		$	1,625,281		$	22,415,713		$	4,144,906		$	12,029,696
	5,776,695			—			—			—			—			—
	205,109			—			—			—			—			—
	499,516,817			12,983,679			9,028,759			91,962,489			16,103,331			65,604,794
$	511,897,159		$	15,574,179		$	10,654,040		$	114,378,202		$	20,248,237		$	77,634,490
	638,269			260,322			164,120			2,190,774			406,038			1,069,199
	575,866			—			—			—			—			—
	20,440			—			—			—			—			—
	49,799,406			1,306,234			910,344			8,989,791			1,587,741			5,832,302
	51,033,981			1,566,556			1,074,464			11,180,565			1,993,779			6,901,501
$	10.02		$	9.95		$	9.90		$	10.23		$	10.21		$	11.25
$	10.03			—			—			—			—			—
$	10.03			—			—			—			—			—
$	10.03		$	9.94		$	9.92		$	10.23		$	10.14		$	11.25
	5.75	%		3.00	%		3.00	%		3.00	%		3.00	%		3.00	%
$	10.64		$	10.26		$	10.21		$	10.55		$	10.52		$	11.60

See accompanying notes to the financial statements.

51

BB&T Funds

Statements of Assets and Liabilities

(Unaudited) March 31, 2006

		West Virginia Intermediate Tax-Free Fund			Prime Money Market Fund
Assets:
Investments:
Unaffiliated investments, at cost		$	68,835,784		$	899,862,879
Investment in affiliates, at cost			—			—
Total investments, at cost			68,835,784			899,862,879
Unrealized appreciation (depreciation)			856,907			—
Investments, at value			69,692,691			899,862,879
Repurchase agreements, at cost			—			74,408,000
Collateralized loan agreements, at cost			—			209,000,000
Cash			—			—
Interest and dividends receivable			1,190,284			2,858,011
Receivable for capital shares issued			275,000			—
Receivable for investments sold			—			—
Prepaid expenses			1,330			18,870
Total Assets			71,159,305			1,186,147,760
Liabilities:
Cash Overdraft			—			214
Dividends payable			191,845			1,962,401
Payable for investments purchased			2,086,103			3,000,000
Payable for capital shares redeemed			24,565			—
Accrued expenses and other payables:
Investment advisory fees			26,198			288,234
Adminstration fees			6,635			108,425
Fund accounting fees			1,465			10,439
Transfer agency fees			774			10,468
Distribution fees			3,199			233,399
Compliance service fees			98			1,678
Other			7,582			130,327
Total Liabilities			2,348,464			5,745,585
Net Assets:
Capital	��		67,696,868			1,180,332,754
Accumulated undistributed net investment income (loss)			(8,616	)		67,845
Accumulated realized gains/(losses) from invesment transactions			265,682			1,576
Net unrealized appreciation/depreciation on investments			856,907			—
Net Assets		$	68,810,841		$	1,180,402,175
Net Assets
Class A Shares		$	15,268,305		$	554,592,196
Class B Shares			—			1,394,985
Class C Shares			—			335,869
Institutional Shares			53,542,536			624,079,125
Total		$	68,810,841		$	1,180,402,175
Outstanding Units of Beneficial Interest (Shares)
Class A Shares			1,577,693			554,561,338
Class B Shares			—			1,394,881
Class C Shares			—			335,849
Institutional Shares			5,527,141			624,056,120
Total			7,104,834			1,180,348,188
Net Asset Value
Class A Shares — redemption price per share		$	9.68		$	1.00
Class B Shares — offering price per share*			—		$	1.00
Class C Shares — offering price per share*			—		$	1.00
Institutional Shares — offering and redemption price per share		$	9.69		$	1.00
Maximum Sales Charge — Class A Shares			3.00	%		NA
Maximum Offering Price (100%/100% — Maximum Sales Charge) of net asset value adjusted to the nearest cent per share — Class A Shares		$	9.98		$	1.00

* Redemption price per share varies by length of time shares are held.

See accompanying notes to the financial statements.

52

U.S. Treasury Money Market Fund		Capital Manager Conservative Growth Fund			Capital Manager Moderate Growth Fund			Capital Manager Growth Fund			Capital Manager Equity Fund
$	328,286,788	$	—		$	—		$	—		$	—
	—		81,074,209			94,175,513			76,608,139			39,776,055
	328,286,788		81,074,209			94,175,513			76,608,139			39,776,055
	—		6,189,706			8,885,405			6,558,983			5,511,421
	328,286,788		87,263,915			103,060,918			83,167,122			45,287,476
	328,496,279		—			—			—			—
	—		—			—			—			—
	—		—			—			—			—
	800,770		258,822			241,758			163,639			71,630
	—		376			9,188			20,625			3,245
	—		445,000			465,000			160,000			70,000
	14,137		2,681			2,470			2,238			2,640
	657,597,974		87,970,794			103,779,334			83,513,624			45,434,991
	—		—			—			—			—
	1,490,302		14,072			6,776			3,453			2,041
	—		600,000			700,000			1,310,000			680,000
	—		6,895			9,199			1,382			7,032
	156,639		—			—			—			—
	62,426		—			—			—			—
	6,480		1,297			3,173			2,988			1,362
	6,188		744			870			690			375
	50,094		6,609			26,091			20,519			8,392
	981		125			144			113			62
	63,074		8,593			14,551			9,663			3,988
	1,836,184		638,335			760,804			1,348,808			703,252
	655,761,544		82,814,370			94,522,025			75,838,369			37,714,479
	246		66,137			109,462			101,747			65,685
	—		(1,737,754	)		(498,362	)		(334,283	)		1,440,154
	—		6,189,706			8,885,405			6,558,983			5,511,421
$	655,761,790	$	87,332,459		$	103,018,530		$	82,164,816		$	44,731,739
$	119,944,099	$	9,580,492		$	33,014,735		$	21,120,064		$	7,064,961
	595,757		5,193,618			22,418,421			19,139,769			8,229,610
	5,166		129,541			128,686			61,656			19,924
	535,216,768		72,428,808			47,456,688			41,843,327			29,417,244
$	655,761,790	$	87,332,459		$	103,018,530		$	82,164,816		$	44,731,739
	119,944,343		969,232			3,260,450			2,083,405			616,139
	595,755		525,238			2,251,114			1,921,350			737,829
	5,166		13,140			12,850			6,190			1,791
	535,216,555		7,272,262			4,670,967			4,123,979			2,549,552
	655,761,819		8,779,872			10,195,381			8,134,924			3,905,311
$	1.00	$	9.88		$	10.13		$	10.14		$	11.47
$	1.00	$	9.89		$	9.96		$	9.96		$	11.15
$	1.00	$	9.86		$	10.01		$	9.96		$	11.12
$	1.00	$	9.96		$	10.16		$	10.15		$	11.54
	NA		5.75	%		5.75	%		5.75	%		5.75	%
$	1.00	$	10.49		$	10.74		$	10.76		$	12.17

See accompanying notes to the financial statements.

53

BB&T Funds

Statements of Operations

(Unaudited) For the Period Ended March 31, 2006

	Large Cap Fund			Large Cap Growth Fund
Investment Income:
Interest income	$	473,363		$	212,126
Dividend income		9,211,594			2,146,146
Foreign tax withholding		—			—
Income from securities lending		63,277			30,380
Total Investment Income		9,748,234			2,388,652
Expenses:
Investment advisory fees (See Note 4)		2,477,452			1,343,072
Administration fees (See Note 4)		380,402			206,226
Fund accounting fees (See Note 4)		43,068			23,620
Transfer agency fees (See Note 4)		76,050			38,472
Distribution fees — Class A Shares (See Note 4)		103,115			22,765
Distribution fees — Class B Shares (See Note 4)		104,594			60,933
Distribution fees — Class C Shares (See Note 4)		904			93
Compliance service fees (See Note 4)		6,005			3,130
Custodian fees		38,107			18,657
Trustee fees		13,633			7,015
Other		122,288			58,928
Total expenses before waivers		3,365,618			1,782,911
Less expenses waived by the Investment Advisor		(200,330	)		(108,726	)
Less expenses waived by the Distributor		(51,558	)		(11,382	)
Net Expenses		3,113,730			1,662,803
Net Investment Income (Loss)		6,634,504			725,849
Realized/Unrealized Gains (Losses) on Investments:
Net realized gains (losses) on option contracts		—			—
Net realized gains (losses) from investment securities and foreign currency transactions		23,783,011			12,318,942
Change in unrealized appreciation/depreciation of investment securities and foreign currency transactions		19,075,074			(422,341	)
Net realized/unrealized gains (losses) on investments and foreign currency transactions		42,858,085			11,896,601
Change in net assets from operations	$	49,492,589		$	12,622,450

See accompanying notes to the financial statements.

54

Mid Cap Value Fund			Mid Cap Growth Fund			Small Cap Fund			International Equity Fund			Special Opportunities Equity Fund			Equity Income Fund
$	132,971		$	85,117		$	96,199		$	—		$	351,546		$	174,603
	1,343,123			928,313			408,456			2,105,389			808,871			1,608,011
	—			—			—			(122,355	)		—			—
	22,370			41,085			7,476			—			—			—
	1,498,464			1,054,515			512,131			1,983,034			1,160,417			1,782,614
	733,190			539,058			321,331			1,192,986			752,801			328,523
	112,604			82,793			36,515			135,553			106,917			53,347
	14,214			10,021			4,576			29,915			12,767			6,758
	23,007			17,754			10,318			20,149			49,210			21,821
	15,940			13,552			4,167			8,776			191,420			115,284
	24,305			12,618			2,283			9,802			109,511			32,725
	2,521			422			25			641			153,219			50,388
	1,675			1,240			398			2,125			1,614			692
	11,447			7,337			2,915			78,190			10,049			4,826
	3,550			2,882			926			4,754			3,519			1,655
	32,846			26,214			11,649			38,797			35,370			24,221
	975,299			713,891			395,103			1,521,688			1,426,397			640,240
	(58,823	)		(43,398	)		(64,267	)		(119,297	)		—			—
	—			—			(2,083	)		(4,388	)		(95,710	)		(57,642	)
	916,476			670,493			328,753			1,398,003			1,330,687			582,598
	581,988			384,022			183,378			585,031			(170,270	)		1,200,016
	—			—			—			—			30,091			—
	4,226,041			13,048,878			4,601,648			12,336,123			3,978,773			226,574
	15,006,390			4,110,903			4,297,133			15,575,770			2,528,137			5,610,408
	19,232,431			17,159,781			8,898,781			27,911,893			6,537,001			5,836,982
$	19,814,419		$	17,543,803		$	9,082,159		$	28,496,924		$	6,366,731		$	7,036,998

See accompanying notes to the financial statements.

55

BB&T Funds

Statements of Operations

(Unaudited) For the Period Ended March 31, 2006

	Short U.S. Government Fund			Intermediate U.S. Government Fund
Investment Income:
Interest income	$	2,652,402		$	13,092,257
Dividend income		—			—
Income from securities lending		32,138			104,738
Total Investment Income		2,684,540			13,196,995
Expenses:
Investment advisory fees (See Note 4)		455,145			1,550,683
Administration fees (See Note 4)		86,139			293,466
Fund accounting fees (See Note 4)		11,105			40,735
Transfer agency fees (See Note 4)		10,920			39,998
Distribution fees — Class A Shares (See Note 4)		18,724			29,053
Distribution fees — Class B Shares (See Note 4)		—			26,601
Distribution fees — Class C Shares (See Note 4)		—			1,451
Compliance service fees (See Note 4)		1,614			5,491
Custodian fees		7,660			26,570
Trustee fees		4,474			8,856
Other		25,271			80,790
Total expenses before waivers		621,052			2,103,694
Less expenses waived by the Investment Advisor		(113,786	)		(273,668	)
Less expenses waived by the Distributor		(9,362	)		(14,526	)
Net Expenses		497,904			1,815,500
Net Investment Income (Loss)		2,186,636			11,381,495
Realized/Unrealized Gains (Losses) on Investments:
Net realized gains (losses) from investment transactions		(183,918	)		(4,538,553	)
Change in unrealized appreciation/depreciation of investments		(791,774	)		(7,691,170	)
Net realized/unrealized gains (losses) on investments		(975,692	)		(12,229,723	)
Change in net assets from operations	$	1,210,944		$	(848,228	)

See accompanying notes to the financial statements.

56

Total Return Bond Fund			Kentucky Intermediate Tax-Free Fund			Maryland Intermediate Tax-Free Fund			North Carolina Intermediate Tax-Free Fund			South Carolina Intermediate Tax-Free Fund			Virginia Intermediate Tax-Free Fund
$	11,759,378		$	320,633		$	201,192		$	2,439,266		$	420,412		$	1,735,896
	—			7,473			5,078			26,020			7,831			23,537
	94,981			—			—			—			—			—
	11,854,359			328,106			206,270			2,465,286			428,243			1,759,433
	1,458,865			51,496			33,208			340,619			60,839			236,977
	276,249			9,747			6,286			64,487			11,518			44,863
	34,601			6,703			6,463			13,509			6,035			10,289
	33,373			1,287			826			7,833			1,531			5,311
	16,944			6,518			4,092			53,049			10,254			31,894
	29,795			—			—			—			—			—
	1,054			—			—			—			—			—
	4,363			163			104			1,031			162			711
	26,765			853			555			5,620			997			4,089
	9,406			320			208			2,131			342			1,469
	78,637			4,171			2,497			18,720			6,065			13,567
	1,970,052			81,258			54,239			506,999			97,743			349,170
	(259,332	)		(18,879	)		(16,874	)		(85,155	)		(17,658	)		(59,244	)
	(8,472	)		(3,259	)		(2,046	)		(26,525	)		(5,127	)		(15,947	)
	1,702,248			59,120			35,319			395,319			74,958			273,979
	10,152,111			268,986			170,951			2,069,967			353,285			1,485,454
	(4,121,696	)		(54,332	)		(53,679	)		(62,241	)		33,581			(150,703	)
	(6,989,924	)		(123,795	)		(83,521	)		(1,478,618	)		(327,797	)		(1,130,629	)
	(11,111,620	)		(178,127	)		(137,200	)		(1,540,859	)		(294,216	)		(1,281,332	)
$	(959,509	)	$	90,859		$	33,751		$	529,108		$	59,069		$	204,122

See accompanying notes to the financial statements.

57

BB&T Funds

Statements of Operations

(Unaudited) For the Period Ended March 31, 2006

	West Virginia Intermediate Tax-Free Fund			Prime Money Market Fund
Investment Income:
Interest income	$	1,551,229		$	23,542,036
Dividend income		18,513			—
Dividend income from affiliates		—			—
Income from securities lending		—			—
Total Investment Income		1,569,742			23,542,036
Expenses:
Investment advisory fees		154,221			2,160,041
Administration fees (See Note 4)		38,929			613,672
Fund accounting fees (See Note 4)		11,304			70,241
Transfer agency fees (See Note 4)		4,881			71,370
Distribution fees — Class A Shares (See Note 4)		17,781			1,289,546
Distribution fees — Class B Shares (See Note 4)		—			7,541
Distribution fees — Class C Shares (See Note 4)		—			1,894
Compliance services fees (See Note 4)		639			9,295
Custodian fees		3,106			67,077
Trustee fees		1,288			21,496
Other		11,869			189,765
Total expenses before waivers		244,018			4,501,938
Less expenses waived by the Investment Advisor		—			(594,012	)
Less expenses waived by the Administrator		—			—
Less expenses waived by the Distributor		—			—
Net Expenses		244,018			3,907,926
Net Investment Income (Loss)		1,325,724			19,634,110
Realized/Unrealized Gains (Losses) on Investments:
Net realized gains (losses) from investment transactions		246,624			1,576
Net realized gain distributions from underlying funds		—			—
Change in unrealized appreciation/depreciation of investments		(1,057,832	)		—
Net realized/unrealized gains (losses) on investments		(811,208	)		1,576
Change in net assets from operations	$	514,516		$	19,635,686

See accompanying notes to the financial statements.

58

U.S. Treasury Money Market Fund			Capital Manager Conservative Growth Fund			Capital Manager Moderate Growth Fund			Capital Manager Growth Fund			Capital Manager Equity Fund
$	14,197,776		$	—		$	—		$	—		$	—
	—			—			—			—			—
	—			1,538,773			1,525,138			1,081,250			513,328
	106,611			—			—			—			—
	14,304,387			1,538,773			1,525,138			1,081,250			513,328
	1,402,278			107,728			121,904			94,697			51,625
	398,179			48,956			55,409			43,048			23,468
	45,011			5,390			6,089			4,731			2,571
	49,458			8,846			19,834			17,329			8,054
	291,404			23,908			76,346			46,715			16,458
	3,275			25,640			110,017			89,338			38,346
	74			681			626			239			95
	6,845			796			851			641			344
	39,039			4,724			5,250			4,162			2,303
	14,321			1,705			1,907			1,486			801
	141,756			16,617			19,943			16,483			9,576
	2,391,640			244,991			418,176			318,869			153,641
	(443,259	)		(107,728	)		(121,904	)		(94,697	)		(51,625	)
	—			(48,956	)		(55,409	)		(43,048	)		(23,468	)
	—			(11,954	)		(38,173	)		(23,357	)		(8,229	)
	1,948,381			76,353			202,690			157,767			70,319
	12,356,006			1,462,420			1,322,448			923,483			443,009
	—			169,487			(180,292	)		(117,250	)		327
	—			1,582,059			2,448,754			2,275,079			1,553,175
	—			(598,551	)		1,059,550			1,451,152			1,118,106
	—			1,152,995			3,328,012			3,608,981			2,671,608
$	12,356,006		$	2,615,415		$	4,650,460		$	4,532,464		$	3,114,617

See accompanying notes to the financial statements.

59

BB&T Funds

Statements of Changes in Net Assets

	Large Cap Fund						Large Cap Growth Fund
	For the Six Months Ended March 31, 2006			For the Year Ended September 30, 2005			For the Six Months Ended March 31, 2006			For the Year Ended September 30, 2005
	(Unaudited)						(Unaudited)
From Investment Activities
Operations:
Net investment income (loss)	$	6,634,504		$	12,192,576		$	725,849		$	2,215,410
Net realized gains (losses) from investment securities and foreign currency transactions		23,783,011			47,605,821			12,318,942			24,836,740
Change in unrealized appreciation/depreciation of investment securities and foreign currency transactions		19,075,074			35,932,841			(422,341	)		8,590,549
Change in net assets from operations		49,492,589			95,731,238			12,622,450			35,642,699
Dividends to Class A Shareholders:
Net investment income		(344,659	)		(576,782	)		(7,279	)		(41,621	)
Net realized gains from investment transactions		(3,036,244	)		—			—			—
Dividends to Class B Shareholders:
Net investment income		(97,011	)		(209,031	)		—			(34,833	)
Net realized gains from investment transactions		(1,539,960	)		—			—			—
Dividends to Class C Shareholders:
Net investment income		(806	)		(1,373	)		—			(110	)
Net realized gains from investment transactions		(13,216	)		—			—			—
Dividends to Institutional Class Shareholders:
Net investment income		(5,816,916	)		(11,420,295	)		(728,042	)		(2,146,171	)
Net realized gains from investment transactions		(43,740,178	)		—			—			—
Change in net assets from shareholder dividends		(54,588,990	)		(12,207,481	)		(735,321	)		(2,222,735	)
Capital Transactions:
Change in net assets from capital transactions		49,495,226			(94,385,766	)		14,260,716			(44,276,953	)
Change in net assets		44,398,825			(10,862,009	)		26,147,845			(10,856,989	)
Net Assets:
Beginning of period		667,572,969			678,434,978			357,857,723			368,714,712
End of period	$	711,971,794		$	667,572,969		$	384,005,568		$	357,857,723
Accumulated undistributed net investment income (loss)	$	232,690		$	(142,422	)	$	(16,797	)	$	(7,325	)

See accompanying notes to the financial statements.

60

Mid Cap Value Fund						Mid Cap Growth Fund						Small Cap Fund						International Equity Fund
For the Six Months Ended March 31, 2006			For the Year Ended September 30, 2005			For the Six Months Ended March 31, 2006			For the Year Ended September 30, 2005			For the Six Months Ended March 31, 2006			For the Year Ended September 30, 2005			For the Six Months Ended March 31, 2006			For the Year Ended September 30, 2005
(Unaudited)						(Unaudited)						(Unaudited)						(Unaudited)
$	581,988		$	2,086,164		$	384,022		$	(650,843	)	$	183,378		$	693,285		$	585,031		$	3,189,210
	4,226,041			78,019,273			13,048,878			14,423,194			4,601,648			7,666,906			12,336,123			23,396,171
	15,006,390			(40,170,825	)		4,110,903			19,508,277			4,297,133			3,616,868			15,575,770			16,828,222
	19,814,419			39,934,612			17,543,803			33,280,628			9,082,159			11,977,059			28,496,924			43,413,603
	(21,280	)		(87,140	)		(18,135	)		—			(7,163	)		(5,318	)		(402	)		(29,608	)
	(1,333,886	)		(3,524,287	)		(1,059,712	)		(107,640	)		(191,408	)		(20,187	)		—			—
	(901	)		(16,556	)		—			—			(2,860	)		(1,258	)		—			(15,662	)
	(513,508	)		(1,270,093	)		(249,959	)		(26,807	)		(45,459	)		(4,329	)		—			—
	(121	)		(1,758	)		—			—			(9	)		(29	)		—			(234	)
	(45,330	)		(114,396	)		(8,280	)		(2,371	)		(613	)		(43	)		—			—
	(498,412	)		(1,899,246	)		(373,020	)		—			(163,887	)		(644,153	)		(333,355	)		(3,151,658	)
	(18,584,705	)		(54,097,901	)		(12,750,698	)		(1,390,450	)		(8,036,789	)		(1,923,687	)		—			—
	(20,998,143	)		(61,011,377	)		(14,459,804	)		(1,527,268	)		(8,448,188	)		(2,599,004	)		(333,757	)		(3,197,162	)
	34,858,350			14,299,002			21,123,120			(20,323,437	)		65,102,922			(13,757,275	)		(1,245,716	)		(42,128,491	)
	33,674,626			(6,777,763	)		24,207,119			11,429,923			65,736,893			(4,379,220	)		26,917,451			(1,912,050	)
	189,541,320			196,319,083			139,701,328			128,271,405			62,913,646			67,292,866			235,191,523			237,103,573
$	223,215,946		$	189,541,320		$	163,908,447		$	139,701,328		$	128,650,539		$	62,913,646		$	262,108,974		$	235,191,523
$	106,984		$	45,710		$	(7,133	)	$	—		$	28,250		$	18,791		$	(645,980	)	$	(897,254	)

See accompanying notes to the financial statements.

61

BB&T Funds

Statements of Changes in Net Assets, continued

	Special Opportunities Equity Fund						Equity Income Fund
	For the Six Months Ended March 31, 2006			For the Year Ended September 30, 2005			For the Six Months Ended March 31, 2006			For the Year Ended September 30, 2005
	(Unaudited)						(Unaudited)
From Investment Activities
Operations:
Net investment income (loss)	$	(170,270	)	$	(835,017	)	$	1,200,016		$	1,410,198
Net realized gains (losses) from investment transactions		4,008,864			8,511,250			226,574			2,050,561
Change in unrealized appreciation/depreciation of investments		2,528,137			16,152,156			5,610,408			5,384,664
Change in net assets from operations		6,366,731			23,828,389			7,036,998			8,845,423
Dividends to Class A Shareholders:
Net investment income		—			—			(560,146	)		(602,645	)
Net realized gains from investment transactions		(3,922,525	)		(323,812	)		(981,811	)		(18,755	)
Dividends to Class B Shareholders:
Net investment income		—			—			(58,365	)		(61,733	)
Net realized gains from investment transactions		(1,153,429	)		(136,241	)		(137,614	)		(4,173	)
Dividends to Class C Shareholders:
Net investment income		—			—			(89,500	)		(97,631	)
Net realized gains from investment transactions		(1,585,769	)		(174,173	)		(213,187	)		(5,788	)
Dividends to Institutional Class Shareholders:
Net investment income		—			—			(405,955	)		(658,424	)
Net realized gains from investment transactions		(3,033,471	)		(381,013	)		(674,732	)		(44,436	)
Change in net assets from shareholder dividends		(9,695,194	)		(1,015,239	)		(3,121,310	)		(1,493,585	)
Capital Transactions:
Change in net assets from capital transactions		8,502,046			68,303,302			12,584,897			47,396,767
Change in net assets		5,173,583			91,116,452			16,500,585			54,748,605
Net Assets:
Beginning of period		188,660,681			97,544,229			85,707,290			30,958,685
End of period	$	193,834,264		$	188,660,681		$	102,207,875		$	85,707,290
Accumulated undistributed net investment income (loss)	$	(170,270	)	$	—		$	78,836		$	(7,214	)

See accompanying notes to the financial statements.

62

Short U.S. Government Fund						Intermediate U.S. Government Fund						Total Return Bond Fund						Kentucky Intermediate Tax-Free Fund
For the Six Months Ended March 31, 2006			For the Year Ended September 30, 2005			For the Six Months Ended March 31, 2006			For the Year Ended September 30, 2005			For the Six Months Ended March 31, 2006			For the Year Ended September 30, 2005			For the Six Months Ended March 31, 2006			For the Year Ended September 30, 2005
(Unaudited)						(Unaudited)						(Unaudited)						(Unaudited)
$	2,186,636		$	5,003,172		$	11,381,495		$	21,870,460		$	10,152,111		$	13,383,359		$	268,986		$	495,844
	(183,918	)		(379,543	)		(4,538,553	)		(273,986	)		(4,121,696	)		5,949,823			(54,332	)		51,649
	(791,774	)		(2,478,333	)		(7,691,170	)		(7,911,749	)		(6,989,924	)		(12,459,542	)		(123,795	)		(322,868	)
	1,210,944			2,145,296			(848,228	)		13,684,725			(959,509	)		6,873,640			90,859			244,625
	(122,970	)		(243,972	)		(240,328	)		(477,803	)		(140,151	)		(243,169	)		(38,166	)		(69,816	)
	—			—			—			(56,160	)		(31,092	)		(15,675	)		—			—
	—			—			(90,558	)		(190,379	)		(100,806	)		(224,351	)		—			—
	—			—			—			(29,669	)		(26,599	)		(20,100	)		—			—
	—			—			(4,896	)		(14,318	)		(3,573	)		(8,225	)		—			—
	—			—			—			(2,287	)		(927	)		(747	)		—			—
	(2,542,353	)		(5,957,741	)		(10,934,580	)		(23,429,629	)		(10,394,520	)		(15,035,177	)		(231,148	)		(423,702	)
	—			—			—			(2,449,142	)		(2,117,462	)		(858,176	)		—			—
	(2,665,323	)		(6,201,713	)		(11,270,362	)		(26,649,387	)		(12,815,130	)		(16,405,620	)		(269,314	)		(493,518	)
	(25,291,084	)		(36,554,057	)		(90,017,213	)		17,614,479			50,288,873			200,521,516			(2,382,547	)		2,217,737
	(26,745,463	)		(40,610,474	)		(102,135,803	)		4,649,817			36,514,234			190,989,536			(2,561,002	)		1,948,844
	163,765,539			204,376,013			558,780,885			554,131,068			475,382,925			284,393,389			18,135,181			16,186,337
$	137,020,076		$	163,765,539		$	456,645,082		$	558,780,885		$	511,897,159		$	475,382,925		$	15,574,179		$	18,135,181
$	(270,187	)	$	208,500		$	402,962		$	291,829		$	(2,075	)	$	484,864		$	1,360		$	1,688

See accompanying notes to the financial statements.

63

BB&T Funds

Statements of Changes in Net Assets, continued

	Maryland Intermediate Tax-Free Fund						North Carolina Intermediate Tax-Free Fund
	For the Six Months Ended March 31, 2006			For the Year Ended September 30, 2005			For the Six Months Ended March 31, 2006			For the Year Ended September 30, 2005
	(Unaudited)						(Unaudited)
From Investment Activities
Operations:
Net investment income (loss)	$	170,951		$	303,626		$	2,069,967		$	3,955,629
Net realized gains (losses) from investment transactions		(53,679	)		(20,169	)		(62,241	)		984,109
Change in unrealized appreciation/depreciation of investments		(83,521	)		(113,820	)		(1,478,618	)		(3,088,206	)
Change in net assets from operations		33,751			169,637			529,108			1,851,532
Dividends to Class A Shareholders:
Net investment income		(23,607	)		(26,781	)		(357,657	)		(733,411	)
Net realized gains from investment transactions		—			—			(188,609	)		(38,438	)
Dividends to Class B Shareholders:
Net investment income		—			—			—			—
Net realized gains from investment transactions		—			—			—			—
Dividends to Class C Shareholders:
Net investment income		—			—			—			—
Net realized gains from investment transactions		—			—			—			—
Dividends to Institutional Class Shareholders:
Net investment income		(147,671	)		(277,284	)		(1,670,144	)		(3,212,382	)
Net realized gains from investment transactions		—			—			(813,080	)		(159,613	)
Change in net assets from shareholder dividends		(171,278	)		(304,065	)		(3,029,490	)		(4,143,844	)
Capital Transactions:
Change in net assets from capital transactions		(900,918	)		2,052,613			1,860,897			(2,116,768	)
Change in net assets		(1,038,445	)		1,918,185			(639,485	)		(4,409,080	)
Net Assets:
Beginning of period		11,692,485			9,774,300			115,017,687			119,426,767
End of period	$	10,654,040		$	11,692,485		$	114,378,202		$	115,017,687
Accumulated undistributed net investment income (loss)	$	(466	)	$	(139	)	$	86,298		$	44,132

See accompanying notes to the financial statements.

64

South Carolina Intermediate Tax-Free Fund						Virginia Intermediate Tax-Free Fund						West Virginia Intermediate Tax-Free Fund						Prime Money Market Fund
For the Six Months Ended March 31, 2006			For the Year Ended September 30, 2005			For the Six Months Ended March 31, 2006			For the Year Ended September 30, 2005			For the Six Months Ended March 31, 2006			For the Year Ended September 30, 2005			For the Six Months Ended March 31, 2006			For the Year Ended September 30, 2005
(Unaudited)						(Unaudited)						(Unaudited)						(Unaudited)
$	353,285		$	699,510		$	1,485,454		$	2,871,165		$	1,325,724		$	2,658,263		$	19,634,110		$	20,982,349
	33,581			347,851			(150,703	)		451,579			246,624			424,070			1,576			296
	(327,797	)		(719,387	)		(1,130,629	)		(1,964,246	)		(1,057,832	)		(1,514,595	)		—			—
	59,069			327,974			204,122			1,358,498			514,516			1,567,738			19,635,686			20,982,645
	(67,011	)		(120,824	)		(219,165	)		(439,836	)		(261,290	)		(410,722	)		(8,670,416	)		(9,358,223	)
	(70,839	)		(26,156	)		(73,017	)		(26,900	)		(87,942	)		(83,550	)		—			—
	—			—			—			—			—			—			(21,380	)		(26,256	)
	—			—			—			—			—			—			—			—
	—			—			—			—			—			—			(5,375	)		(4,720	)
	—			—			—			—			—			—			—			—
	(286,302	)		(578,238	)		(1,222,020	)		(2,431,188	)		(1,063,896	)		(2,242,970	)		(10,878,762	)		(11,593,150	)
	(276,367	)		(119,968	)		(374,838	)		(133,111	)		(336,138	)		(472,029	)		—			—
	(700,519	)		(845,186	)		(1,889,040	)		(3,031,035	)		(1,749,266	)		(3,209,271	)		(19,575,933	)		(20,982,349	)
	349,508			(579,207	)		(1,404,851	)		606,500			473,301			(3,118,848	)		174,003,609			47,539,283
	(291,942	)		(1,096,419	)		(3,089,769	)		(1,066,037	)		(761,449	)		(4,760,381	)		174,063,362			47,539,579
	20,540,179			21,636,598			80,724,259			81,790,296			69,572,290			74,332,671			1,006,338,813			958,799,234
$	20,248,237		$	20,540,179		$	77,634,490		$	80,724,259		$	68,810,841		$	69,572,290		$	1,180,402,175		$	1,006,338,813
$	15,954		$	15,982		$	77,333		$	33,064		$	(8,616	)	$	(9,154	)	$	67,845		$	9,668

See accompanying notes to the financial statements.

65

BB&T Funds

Statements of Changes in Net Assets, continued

	U.S. Treasury Money Market Fund						Capital Manager Conservative Growth Fund
	For the Six Months Ended March 31, 2006			For the Year Ended September 30, 2005			For the Six Months Ended March 31, 2006			For the Year Ended September 30, 2005
	(Unaudited)						(Unaudited)
From Investment Activities
Operations:
Net investment income (loss)	$	12,356,006		$	17,879,508		$	1,462,420		$	2,105,959
Net realized gains (losses) from investment transactions		—			—			169,487			(1,325,271	)
Net realized distributions from underlying funds		—			—			1,582,059			862,586
Change in unrealized appreciation/depreciation of investments		—			—			(598,551	)		4,281,075
Change in net assets from operations		12,356,006			17,879,508			2,615,415			5,924,349
Dividends to Class A Shareholders:
Net investment income		(1,816,594	)		(2,034,759	)		(157,602	)		(168,581	)
Net realized gains from investment transactions		—			—			—			—
Dividends to Class B Shareholders:
Net investment income		(8,467	)		(8,071	)		(65,593	)		(77,014	)
Net realized gains from investment transactions		—			—			—			—
Dividends to Class C Shareholders:
Net investment income		(177	)		(109	)		(1,637	)		(2,499	)
Net realized gains from investment transactions		—			—			—			—
Dividends to Institutional Class Shareholders:
Net investment income		(10,530,768	)		(15,836,569	)		(1,253,851	)		(1,775,465	)
Net realized gains from investment transactions		—			—			—			—
Change in net assets from shareholder dividends		(12,356,006	)		(17,879,508	)		(1,478,683	)		(2,023,559	)
Capital Transactions:
Change in net assets from capital transactions		(52,079,070	)		(341,713,777	)		606,079			3,484,227
Change in net assets		(52,079,070	)		(341,713,777	)		1,742,811			7,385,017
Net Assets:
Beginning of period		707,840,860			1,049,554,637			85,589,648			78,204,631
End of period	$	655,761,790		$	707,840,860		$	87,332,459		$	85,589,648
Accumulated undistributed net investment income (loss)	$	246		$	246		$	66,137		$	82,400

See accompanying notes to the financial statements.

66

Capital Manager Moderate Growth Fund						Capital Manager Growth Fund						Capital Manager Equity Fund
For the Six Months Ended March 31, 2006			For the Year Ended September 30, 2005			For the Six Months Ended March 31, 2006			For the Year Ended September 30, 2005			For the Six Months Ended March 31, 2006			For the Year Ended September 30, 2005
(Unaudited)						(Unaudited)						(Unaudited)
$	1,322,448		$	1,437,620		$	923,483		$	830,676		$	443,009		$	313,973
	(180,292	)		(2,270,891	)		(117,250	)		(1,601,280	)		327			5,772
	2,448,754			1,241,944			2,275,079			1,124,177			1,553,175			773,587
	1,059,550			7,702,572			1,451,152			6,904,538			1,118,106			3,696,738
	4,650,460			8,111,245			4,532,464			7,258,111			3,114,617			4,790,070
	(431,843	)		(404,055	)		(238,455	)		(169,918	)		(72,704	)		(28,662	)
	—			—			—			—			(112,648	)		—
	(229,270	)		(176,756	)		(163,685	)		(66,171	)		(60,775	)		(6,994	)
	—			—			—			—			(134,397	)		—
	(1,330	)		(1,384	)		(552	)		(138	)		(150	)		(1	)
	—			—			—			—			(336	)		—
	(680,901	)		(725,067	)		(541,300	)		(472,193	)		(329,629	)		(192,382	)
	—			—			—			—			(458,864	)		—
	(1,343,344	)		(1,307,262	)		(943,992	)		(708,420	)		(1,169,503	)		(228,039	)
	5,415,254			13,866,681			6,633,500			10,933,539			3,267,820			4,544,281
	8,722,370			20,670,664			10,221,972			17,483,230			5,212,934			9,106,312
	94,296,160			73,625,496			71,942,844			54,459,614			39,518,805			30,412,493
$	103,018,530		$	94,296,160		$	82,164,816		$	71,942,844		$	44,731,739		$	39,518,805
$	109,462		$	130,358		$	101,747		$	122,256		$	65,685		$	85,934

See accompanying notes to the financial statements.

67

BB&T Funds

Statements of Changes in Net Assets, continued

	Large Cap Fund						Large Cap Growth Fund
	For the Six Months Ended March 31, 2006			For the Year Ended September 30, 2005			For the Six Months Ended March 31, 2006			For the Year Ended September 30, 2005
	(Unaudited)						(Unaudited)
Capital Transactions:
Class A Shares:
Proceeds from shares issued	$	4,277,715		$	9,661,619		$	995,615		$	1,781,452
Proceeds from shares issued in conversion		—			—			—			—
Dividends reinvested		3,049,687			546,626			6,380			34,217
Value of shares redeemed		(3,376,684	)		(6,489,397	)		(1,325,878	)		(2,280,442	)
Change in net assets from Class A Share transactions		3,950,718			3,718,848			(323,883	)		(464,773	)
Class B Shares:
Proceeds from shares issued		632,623			1,142,035			219,980			602,206
Proceeds from shares issued in conversion		—			—			—			—
Dividends reinvested		1,622,959			210,190			2			34,776
Value of shares redeemed		(3,807,666	)		(8,551,951	)		(1,436,861	)		(2,993,414	)
Change in net assets from Class B Share transactions		(1,552,084	)		(7,199,726	)		(1,216,879	)		(2,356,432	)
Class C Shares:
Proceeds from shares issued		8,507			52,119			704			11,034
Proceeds from shares issued in conversion		—			—			—			—
Dividends reinvested		14,020			1,389			—			110
Value of shares redeemed		(43,687	)		(52,297	)		(55	)		(20,255	)
Change in net assets from Class C Share transactions		(21,160	)		1,211			649			(9,111	)
Institutional Shares:
Proceeds from shares issued		62,183,894			68,736,038			39,383,422			38,224,930
Proceeds from shares issued in conversion		—			—			—			—
Dividends reinvested		33,088,546			6,375,592			424,492			1,162,910
Value of shares redeemed		(48,154,688	)		(166,017,729	)		(24,007,085	)		(80,834,477	)
Change in net assets from Institutional Share transactions		47,117,752			(90,906,099	)		15,800,829			(41,446,637	)
Change in net assets from capital transactions	$	49,495,226		$	(94,385,766	)	$	14,260,716		$	(44,276,953	)
Share Transactions:
Class A Shares:
Issued		224,115			517,981			110,050			203,723
Issued in conversion		—			—			—			—
Reinvested		163,932			29,386			688			3,819
Redeemed		(177,796	)		(347,071	)		(145,488	)		(260,302	)
Change in Class A Shares		210,251			200,296			(34,750	)		(52,760	)
Class B Shares:
Issued		33,567			62,625			25,693			73,333
Issued in conversion		—			—			—			—
Reinvested		88,138			11,398			—			4,106
Redeemed		(201,348	)		(463,800	)		(168,021	)		(361,793	)
Change in Class B Shares		(79,643	)		(389,777	)		(142,328	)		(284,354	)
Class C Shares:
Issued		455			2,803			83			1,334
Issued in conversion		—			—			—			—
Reinvested		763			75			—			13
Redeemed		(2,293	)		(2,943	)		(7	)		(2,390	)
Change in Class C Shares		(1,075	)		(65	)		76			(1,043	)
Institutional Shares:
Issued		3,257,701			3,763,766			4,230,065			4,363,516
Issued in conversion		—			—			—			—
Reinvested		1,773,780			342,725			45,063			128,373
Redeemed		(2,513,707	)		(8,934,669	)		(2,593,448	)		(9,093,856	)
Change in Institutional Shares		2,517,774			(4,828,178	)		1,681,680			(4,601,967	)
Change in Shares		2,647,307			(5,017,724	)		1,504,678			(4,940,124	)

See accompanying notes to the financial statements.

68

Mid Cap Value Fund						Mid Cap Growth Fund						Small Cap Fund						International Equity Fund
For the Six Months Ended March 31, 2006			For the Year Ended September 30, 2005			For the Six Months Ended March 31, 2006			For the Year Ended September 30, 2005			For the Six Months Ended March 31, 2006			For the Year Ended September 30, 2005			For the Six Months Ended March 31, 2006			For the Year Ended September 30, 2005
(Unaudited)						(Unaudited)						(Unaudited)						(Unaudited)
$	2,009,207		$	4,485,560		$	1,547,960		$	2,518,857		$	334,946		$	1,710,491		$	787,599		$	2,478,283
	—			—			—			—			4,200,800			—			—			—
	1,301,444			3,485,585			1,036,565			106,199			166,972			24,657			323			28,796
	(1,932,010	)		(3,419,250	)		(1,246,340	)		(2,430,159	)		(561,937	)		(578,781	)		(1,272,627	)		(837,193	)
	1,378,641			4,551,895			1,338,185			194,897			4,140,781			1,156,367			(484,705	)		1,669,886
	702,453			945,833			374,673			228,265			107,773			127,135			141,278			142,997
	—			—			—			—			6,716,217			—			—			—
	512,918			1,284,643			246,230			26,526			48,317			5,587			—			16,175
	(336,957	)		(730,819	)		(172,825	)		(342,348	)		(34,626	)		(35,184	)		(309,747	)		(640,348	)
	878,414			1,499,657			448,078			(87,557	)		6,837,681			97,538			(168,469	)		(481,176	)
	329,867			86,720			8,554			59,422			62			4,000			57,767			88,381
	—			—			—			—			22,004			—			—			—
	38,171			90,479			8,279			2,371			622			72			8			235
	(4,208	)		(314,401	)		(48,421	)		(241,417	)		—			(1,606	)		—			(852	)
	363,830			(137,202	)		(31,588	)		(179,624	)		22,688			2,466			57,775			87,764
	40,892,379			41,973,265			26,546,775			24,514,270			17,209,233			12,467,749			27,810,328			24,998,978
	—			—			—			—			41,863,063			—			—			—
	13,017,833			34,205,347			6,303,904			587,204			3,811,720			1,559,698			207,604			2,083,059
	(21,672,747	)		(67,793,960	)		(13,482,234	)		(45,352,627	)		(8,782,244	)		(29,041,093	)		(28,668,249	)		(70,487,002	)
	32,237,465			8,384,652			19,368,445			(20,251,153	)		54,101,772			(15,013,646	)		(650,317	)		(43,404,965	)
$	34,858,350		$	14,299,002		$	21,123,120		$	(20,323,437	)	$	65,102,922		$	(13,757,275	)	$	(1,245,716	)	$	(42,128,491	)
	155,163			271,180			113,334			200,123			21,666			108,999			79,896			267,274
	—			—			—			—			519,216			—			—			—
	104,280			259,391			79,755			8,835			11,385			1,663			30			3,230
	(147,756	)		(216,209	)		(90,820	)		(195,031	)		(35,276	)		(37,585	)		(128,857	)		(93,010	)
	111,687			314,362			102,269			13,927			516,991			73,077			(48,931	)		177,494
	54,852			57,215			28,340			19,563			7,013			8,300			14,863			16,667
	—			—			—			—			320,692			—			—			—
	41,799			97,143			19,667			2,263			3,357			382			—			1,917
	(25,796	)		(43,973	)		(12,803	)		(28,374	)		(2,326	)		(2,282	)		(33,039	)		(74,499	)
	70,855			110,385			35,204			(6,548	)		328,736			6,400			(18,176	)		(55,915	)
	26,234			5,360			672			4,938			5			265			6,123			9,933
	—			—			—			—			1,265			—			—			—
	3,110			6,824			661			202			43			5			1			27
	(338	)		(19,649	)		(3,634	)		(18,787	)		—			(105	)		—			(101	)
	29,006			(7,465	)		(2,301	)		(13,647	)		1,313			165			6,124			9,859
	3,170,360			2,538,005			1,846,284			1,903,007			1,133,924			802,471			2,668,402			2,743,691
	—			—			—			—			2,617,536			—			—			—
	1,039,431			2,536,735			461,521			46,864			259,104			105,249			19,011			231,260
	(1,660,351	)		(4,052,925	)		(949,992	)		(3,563,229	)		(551,783	)		(1,887,106	)		(2,825,043	)		(7,688,123	)
	2,549,440			1,021,815			1,357,813			(1,613,358	)		3,458,781			(979,386	)		(137,630	)		(4,713,172	)
	2,760,988			1,439,097			1,492,985			(1,619,626	)		4,305,821			(899,744	)		(198,613	)		(4,581,734	)

See accompanying notes to the financial statements.

69

BB&T Funds

Statements of Changes in Net Assets, continued

	Special Opportunities Equity Fund						Equity Income Fund
	For the Six Months Ended March 31, 2006			For the Year Ended September 30, 2005			For the Six Months Ended March 31, 2006			For the Year Ended September 30, 2005
	(Unaudited)						(Unaudited)
Capital Transactions:
Class A Shares:
Proceeds from shares issued	$	9,309,135		$	50,533,764		$	11,549,012		$	33,326,261
Dividends reinvested		3,800,006			314,726			1,464,873			589,988
Value of shares redeemed		(9,120,850	)		(12,154,765	)		(5,280,602	)		(1,849,819	)
Change in net assets from Class A Share transactions		3,988,291			38,693,725			7,733,283			32,066,430
Class B Shares:
Proceeds from shares issued		1,538,014			7,432,082			2,031,669			3,572,969
Dividends reinvested		1,097,152			132,617			183,297			62,723
Value of shares redeemed		(1,442,058	)		(1,625,829	)		(442,675	)		(119,544	)
Change in net assets from Class B Share transactions		1,193,108			5,938,870			1,772,291			3,516,148
Class C Shares:
Proceeds from shares issued		3,264,937			14,020,481			3,107,907			6,467,982
Dividends reinvested		1,572,304			171,895			290,718			100,048
Value of shares redeemed		(2,184,368	)		(3,171,753	)		(848,680	)		(304,640	)
Change in net assets from Class C Share transactions		2,652,873			11,020,623			2,549,945			6,263,390
Institutional Shares:
Proceeds from shares issued		3,599,683			15,525,894			1,535,253			5,868,423
Dividends reinvested		2,382,335			339,818			920,152			688,209
Value of shares redeemed		(5,314,244	)		(3,215,628	)		(1,926,027	)		(1,005,833	)
Change in net assets from Institutional Share transactions		667,774			12,650,084			529,378			5,550,799
Change in net assets from capital transactions	$	8,502,046		$	68,303,302		$	12,584,897		$	47,396,767
Share Transactions:
Class A Shares:
Issued		620,229			3,430,628			939,531			2,869,638
Reinvested		257,977			21,932			119,637			50,231
Redeemed		(609,713	)		(804,158	)		(423,854	)		(156,448	)
Change in Class A Shares		268,493			2,648,402			635,314			2,763,421
Class B Shares:
Issued		104,320			512,930			165,557			307,803
Reinvested		76,033			9,352			15,004			5,368
Redeemed		(98,424	)		(109,982	)		(35,995	)		(10,194	)
Change in Class B Shares		81,929			412,300			144,566			302,977
Class C Shares:
Issued		222,423			975,534			253,358			561,000
Reinvested		108,885			12,122			23,826			8,567
Redeemed		(148,830	)		(212,218	)		(69,178	)		(25,759	)
Change in Class C Shares		182,478			775,438			208,006			543,808
Institutional Shares:
Issued		238,512			1,037,730			123,247			509,983
Reinvested		160,751			23,598			75,062			59,891
Redeemed		(353,127	)		(210,210	)		(155,812	)		(83,473	)
Change in Institutional Shares		46,136			851,118			42,497			486,401
Change in Shares		579,036			4,687,258			1,030,383			4,096,607

See accompanying notes to the financial statements.

70

Short U.S. Government Fund						Intermediate U.S. Government Fund						Total Return Bond Fund						Kentucky Intermediate Tax-Free Fund
For the Six Months Ended March 31, 2006			For the Year Ended September 30, 2005			For the Six Months Ended March 31, 2006			For the Year Ended September 30, 2005			For the Six Months Ended March 31, 2006			For the Year Ended September 30, 2005			For the Six Months Ended March 31, 2006			For the Year Ended September 30, 2005
(Unaudited)						(Unaudited)						(Unaudited)						(Unaudited)
$	870,720		$	1,521,231		$	2,252,653		$	7,912,637		$	873,960		$	3,553,124		$	66,932		$	880,498
	87,353			200,254			210,588			511,872			150,686			236,789			32,393			68,804
	(1,820,841	)		(2,023,644	)		(5,105,282	)		(6,364,645	)		(1,692,225	)		(1,171,666	)		(48,383	)		(1,085,960	)
	(862,768	)		(302,159	)		(2,642,041	)		2,059,864			(667,579	)		2,618,247			50,942			(136,658	)
	—			—			189,851			309,161			349,034			590,741			—			—
	—			—			80,817			204,831			112,800			232,014			—			—
	—			—			(948,016	)		(1,534,282	)		(677,820	)		(1,092,541	)		—			—
	—			—			(677,348	)		(1,020,290	)		(215,986	)		(269,786	)		—			—
	—			—			15,122			92,895			14,052			16,713			—			—
	—			—			3,064			13,100			4,249			8,371			—			—
	—			—			(61,359	)		(428,764	)		(25,365	)		(57,214	)		—			—
	—			—			(43,173	)		(322,769	)		(7,064	)		(32,130	)		—			—
	6,733,226			45,135,970			21,707,952			161,477,331			90,577,373			239,507,286			776,877			7,483,716
	1,108,732			2,187,510			6,331,956			13,752,797			5,426,493			7,254,855			334			1,275
	(32,270,274	)		(83,575,378	)		(114,694,559	)		(158,332,454	)		(44,824,364	)		(48,556,956	)		(3,210,700	)		(5,130,596	)
	(24,428,316	)		(36,251,898	)		(86,654,651	)		16,897,674			51,179,502			198,205,185			(2,433,489	)		2,354,395
$	(25,291,084	)	$	(36,554,057	)	$	(90,017,213	)	$	17,614,479		$	50,288,873		$	200,521,516		$	(2,382,547	)	$	2,217,737
	92,043			158,795			227,618			783,801			85,808			341,242			6,719			86,656
	9,248			20,875			21,302			50,474			14,826			22,635			3,239			6,786
	(192,467	)		(211,022	)		(515,718	)		(629,447	)		(165,995	)		(112,317	)		(4,831	)		(106,990	)
	(91,176	)		(31,352	)		(266,798	)		204,828			(65,361	)		251,560			5,127			(13,548	)
	—			—			19,204			30,638			34,268			56,591			—			—
	—			—			8,201			20,267			11,092			22,148			—			—
	—			—			(96,022	)		(151,847	)		(66,709	)		(104,808	)		—			—
	—			—			(68,617	)		(100,942	)		(21,349	)		(26,069	)		—			—
	—			—			1,265			9,176			1,380			1,598			—			—
	—			—			311			1,296			417			800			—			—
	—			—			(6,188	)		(42,455	)		(2,492	)		(5,488	)		—			—
	—			—			(4,612	)		(31,983	)		(695	)		(3,090	)		—			—
	711,645			4,698,111			2,186,643			15,900,619			8,899,680			22,968,831			77,612			739,641
	117,262			227,789			639,479			1,355,399			533,720			693,599			34			126
	(3,411,952	)		(8,711,294	)		(11,562,917	)		(15,658,921	)		(4,397,259	)		(4,652,378	)		(321,319	)		(506,921	)
	(2,583,045	)		(3,785,394	)		(8,736,795	)		1,597,097			5,036,141			19,010,052			(243,673	)		232,846
	(2,674,221	)		(3,816,746	)		(9,076,822	)		1,669,000			4,948,736			19,232,453			(238,546	)		219,298

See accompanying notes to the financial statements.

71

BB&T Funds

Statements of Changes in Net Assets, continued

	Maryland Intermediate Tax-Free Fund						North Carolina Intermediate Tax-Free Fund
	For the Six Months Ended March 31, 2006			For the Year Ended September 30, 2005			For the Six Months Ended March 31, 2006			For the Year Ended September 30, 2005
	(Unaudited)						(Unaudited)
Capital Transactions:
Class A Shares:
Proceeds from shares issued	$	201,198		$	1,131,881		$	3,393,134		$	7,701,435
Dividends reinvested		17,515			19,961			438,437			639,663
Value of shares redeemed		(182,926	)		(196,969	)		(2,540,780	)		(8,948,526	)
Change in net assets from Class A Share transactions		35,787			954,873			1,290,791			(607,428	)
Class B Shares:
Proceeds from shares issued		—			—			—			—
Dividends reinvested		—			—			—			—
Value of shares redeemed		—			—			—			—
Change in net assets from Class B share transactions		—			—			—			—
Class C Shares:
Proceeds from shares issued		—			—			—			—
Dividends reinvested		—			—			—			—
Value of shares redeemed		—			—			—			—
Change in net assets from Class C share transactions		—			—			—			—
Institutional Shares:
Proceeds from shares issued		1,266,680			3,481,070			13,954,342			31,065,370
Dividends reinvested		—			28			27,368			27,118
Value of shares redeemed		(2,203,385	)		(2,383,358	)		(13,411,604	)		(32,601,828	)
Change in net assets from Institutional Share transactions		(936,705	)		1,097,740			570,106			(1,509,340	)
Change in net assets from capital transactions	$	(900,918	)	$	2,052,613		$	1,860,897		$	(2,116,768	)
Share Transactions:
Class A Shares:
Issued		20,200			112,251			329,127			729,383
Reinvested		1,756			1,978			42,541			60,575
Redeemed		(18,336	)		(19,446	)		(246,190	)		(851,796	)
Change in Class A Shares		3,620			94,783			125,478			(61,838	)
Class B Shares:
Issued		—			—			—			—
Reinvested		—			—			—			—
Redeemed		—			—			—			—
Change in Class B Shares		—			—			—			—
Class C Shares:
Issued		—			—			—			—
Reinvested		—			—			—			—
Redeemed		—			—			—			—
Change in Class C Shares		—			—			—			—
Institutional Shares:
Issued		126,756			344,202			1,351,141			2,948,573
Reinvested		—			3			2,655			2,576
Redeemed		(220,835	)		(235,979	)		(1,298,450	)		(3,087,873	)
Change in Institutional Shares		(94,079	)		108,226			55,346			(136,724	)
Change in Shares		(90,459	)		203,009			180,824			(198,562	)

See accompanying notes to the financial statements.

72

South Carolina Intermediate Tax-Free Fund						Virginia Intermediate Tax-Free Fund						West Virginia Intermediate Tax-Free Fund						Prime Money Market Fund
For the Six Months Ended March 31, 2006			For the Year Ended September 30, 2005			For the Six Months Ended March 31, 2006			For the Year Ended September 30, 2005			For the Six Months Ended March 31, 2006			For the Year Ended September 30, 2005			For the Six Months Ended March 31, 2006			For the Year Ended September 30, 2005
(Unaudited)						(Unaudited)						(Unaudited)						(Unaudited)
$	160,831		$	567,315		$	1,233,400		$	3,405,742		$	1,891,286		$	4,029,274		$	369,255,506		$	653,088,826
	124,247			139,596			142,621			217,712			256,728			382,174			8,667,155			9,671,407
	(81,681	)		(690,630	)		(2,224,663	)		(3,208,442	)		(533,001	)		(1,048,404	)		(316,639,746	)		(595,695,608	)
	203,397			16,281			(848,642	)		415,012			1,615,013			3,363,044			61,282,915			67,064,625
	—			—			—			—			—			—			170,852			461,617
	—			—			—			—			—			—			21,366			26,539
	—			—			—			—			—			—			(587,751	)		(977,892	)
	—			—			—			—			—			—			(395,533	)		(489,736	)
	—			—			—			—			—			—			219,376			93,694
	—			—			—			—			—			—			5,740			4,767
	—			—			—			—			—			—			(215,057	)		(225,799	)
	—			—			—			—			—			—			10,059			(127,338	)
	2,477,277			2,267,601			4,956,979			16,254,714			5,204,479			7,786,086			852,535,359			1,062,641,967
	117			—			42,649			59,445			3,338			1,049			1,346,309			1,490,626
	(2,331,283	)		(2,863,089	)		(5,555,837	)		(16,122,671	)		(6,349,529	)		(14,269,027	)		(740,775,500	)		(1,083,040,861	)
	146,111			(595,488	)		(556,209	)		191,488			(1,141,712	)		(6,481,892	)		113,106,168			(18,908,268	)
$	349,508		$	(579,207	)	$	(1,404,851	)	$	606,500		$	473,301		$	(3,118,848	)	$	174,003,609		$	47,539,283
	15,526			53,567			108,311			292,826			193,916			405,774			369,255,506			653,088,826
	12,052			13,084			12,564			18,732			26,362			38,436			8,667,155			9,671,407
	(7,922	)		(64,210	)		(195,372	)		(275,812	)		(54,513	)		(105,279	)		(316,639,746	)		(595,695,608	)
	19,656			2,441			(74,497	)		35,746			165,765			338,931			61,282,915			67,064,625
	—			—			—			—			—			—			170,852			461,617
	—			—			—			—			—			—			21,366			26,539
	—			—			—			—			—			—			(587,751	)		(977,892	)
	—			—			—			—			—			—			(395,533	)		(489,736	)
	—			—			—			—			—			—			219,376			93,694
	—			—			—			—			—			—			5,740			4,767
	—			—			—			—			—			—			(215,057	)		(225,799	)
	—			—			—			—			—			—			10,059			(127,338	)
	241,631			214,639			436,111			1,400,680			533,214			783,915			852,535,359			1,062,641,967
	12			—			3,758			5,117			343			105			1,346,309			1,490,626
	(226,407	)		(270,854	)		(488,720	)		(1,386,069	)		(650,460	)		(1,436,248	)		(740,775,500	)		(1,083,040,861	)
	15,236			(56,215	)		(48,851	)		19,728			(116,903	)		(652,228	)		113,106,168			(18,908,268	)
	34,892			(53,774	)		(123,348	)		55,474			48,862			(313,297	)		174,003,609			47,539,283

See accompanying notes to the financial statements.

73

BB&T Funds

Statements of Changes in Net Assets, continued

	U.S. Treasury Money Market Fund						Capital Manager Conservative Growth Fund
	For the Six Months Ended March 31, 2006			For the Year Ended September 30, 2005			For the Six Months Ended March 31, 2006			For the Year Ended September 30, 2005
	(Unaudited)						(Unaudited)
Capital Transactions:
Class A Shares:
Proceeds from shares issued	$	78,486,727		$	122,382,575		$	1,952,042		$	4,545,111
Dividends reinvested		1,816,364			2,116,647			147,895			174,477
Value of shares redeemed		(74,619,332	)		(132,739,325	)		(1,302,118	)		(1,604,470	)
Change in net assets from Class A Share transactions		5,683,759			(8,240,103	)		797,819			3,115,118
Class B Shares:
Proceeds from shares issued		63,673			313,580			585,760			837,278
Dividends reinvested		7,977			7,886			63,173			83,612
Value of shares redeemed		(283,209	)		(401,098	)		(514,079	)		(1,025,899	)
Change in net assets from Class B Share transactions		(211,559	)		(79,632	)		134,854			(105,009	)
Class C Shares:
Proceeds from shares issued		—			32,427			978			4,097
Dividends reinvested		173			111			1,637			2,873
Value of shares redeemed		(32,524	)		—			(30,001	)		(40,020	)
Change in net assets from Class C Share transactions		(32,351	)		32,538			(27,386	)		(33,050	)
Institutional Shares:
Proceeds from shares issued		573,344,358			850,340,038			1,994,109			7,174,505
Dividends reinvested		2,894,099			3,639,835			1,230,877			2,031,356
Value of shares redeemed		(633,757,376	)		(1,187,406,453	)		(3,524,194	)		(8,698,693	)
Change in net assets from Institutional Share transactions		(57,518,919	)		(333,426,580	)		(299,208	)		507,168
Change in net assets from capital transactions	$	(52,079,070	)	$	(341,713,777	)	$	606,079		$	3,484,227
Share Transactions:
Class A Shares:
Issued		78,486,727			122,382,575			200,517			471,031
Reinvested		1,816,364			2,116,647			15,075			18,128
Redeemed		(74,619,332	)		(132,739,325	)		(132,472	)		(166,711	)
Change in Class A Shares		5,683,759			(8,240,103	)		83,120			322,448
Class B Shares:
Issued		63,673			313,580			59,840			87,018
Reinvested		7,977			7,886			6,439			8,692
Redeemed		(283,209	)		(401,098	)		(52,494	)		(106,529	)
Change in Class B Shares		(211,559	)		(79,632	)		13,785			(10,819	)
Class C Shares:
Issued		—			32,427			100			425
Reinvested		173			111			166			300
Redeemed		(32,524	)		—			(3,087	)		(4,189	)
Change in Class C Shares		(32,351	)		32,538			(2,821	)		(3,464	)
Institutional Shares:
Issued		573,344,358			850,340,038			200,897			738,450
Reinvested		2,894,099			3,639,835			124,507			209,918
Redeemed		(633,757,376	)		(1,187,406,453	)		(356,805	)		(898,329	)
Change in Institutional Shares		(57,518,919	)		(333,426,580	)		(31,401	)		50,039
Change in Shares		(52,079070	)		(341,713,777	)		62,683			358,204

See accompanying notes to the financial statements.

74

Capital Manager Moderate Growth Fund						Capital Manager Growth Fund						Capital Manager Equity Fund
For the Six Months Ended March 31, 2006			For the Year Ended September 30, 2005			For the Six Months Ended March 31, 2006			For the Year Ended September 30, 2005			For the Six Months Ended March 31, 2006			For the Year Ended September 30, 2005
(Unaudited)						(Unaudited)						(Unaudited)
$	4,614,933		$	10,050,273		$	3,955,304		$	6,209,050		$	916,677		$	2,993,886
	419,979			432,713			233,410			174,631			166,941			29,192
	(1,978,707	)		(3,962,369	)		(1,187,751	)		(2,661,745	)		(517,218	)		(1,002,205	)
	3,056,205			6,520,617			3,000,963			3,721,936			566,400			2,020,873
	1,611,477			4,133,083			1,936,453			4,047,594			664,806			1,701,167
	227,158			179,010			162,156			65,614			194,167			6,959
	(2,062,236	)		(3,138,147	)		(935,600	)		(2,300,772	)		(494,905	)		(773,587	)
	(223,601	)		1,173,946			1,163,009			1,812,436			364,068			934,539
	13,891			46,923			22,229			4,603			5,438			301
	1,330			1,384			552			137			487			1
	(12,646	)		(118,189	)		—			(36,901	)		(5,437	)		(74,313	)
	2,575			(69,882	)		22,781			(32,161	)		488			(74,011	)
	3,571,311			8,257,339			3,214,868			7,167,157			2,554,414			4,088,655
	674,348			799,904			533,744			505,600			773,392			198,724
	(1,665,584	)		(2,815,243	)		(1,301,865	)		(2,241,429	)		(990,942	)		(2,624,499	)
	2,580,075			6,242,000			2,446,747			5,431,328			2,336,864			1,662,880
$	5,415,254		$	13,866,681		$	6,633,500		$	10,933,539		$	3,267,820		$	4,544,281
	464,925			1,053,979			401,086			666,388			82,669			286,202
	42,316			45,275			23,740			18,603			15,150			2,805
	(198,880	)		(415,364	)		(120,406	)		(286,259	)		(46,317	)		(95,524	)
	308,361			683,890			304,420			398,732			51,502			193,483
	165,497			441,141			198,974			442,110			61,056			169,091
	23,327			18,957			16,871			7,100			18,146			680
	(211,575	)		(335,050	)		(96,088	)		(252,552	)		(46,027	)		(76,268	)
	(22,751	)		125,048			119,757			196,658			33,175			93,503
	1,418			4,988			2,295			499			504			30
	136			146			58			14			45			—
	(1,285	)		(12,517	)		—			(4,068	)		(504	)		(7,356	)
	269			(7,383	)		2,353			(3,555	)		45			(7,326	)
	357,515			862,088			325,251			768,886			227,985			389,867
	67,722			83,518			54,210			53,932			69,664			18,948
	(166,077	)		(293,469	)		(131,256	)		(239,476	)		(90,018	)		(250,678	)
	259,160			652,137			248,205			583,342			207,631			158,137
	545,039			1,453,692			674,735			1,175,177			292,353			437,797

See accompanying notes to the financial statements.

75

BB&T Funds

Financial Highlights, Class A Shares

Selected data for a share of beneficial interest outstanding throughout the periods indicated.

			Investment Activities						Dividends
	Net Asset Value, Beginning of Period		Net investment income (loss)		Net realized/ unrealized gains (losses) on investments and foreign currency transactions		Total from Investment Activities		Net investment income		Net realized gains on investments and foreign currency transactions		Total Dividends
Large Cap Fund
For the Six Months Ended March 31, 2006 (Unaudited)	$	19.47	0.17		1.23		1.40		(0.16	)	(1.44	)	(1.60	)
Year Ended September 30, 2005	$	17.26	0.28		2.22		2.50		(0.29	)	—		(0.29	)
Year Ended September 30, 2004	$	14.87	0.23		2.38		2.61		(0.22	)	—		(0.22	)
Year Ended September 30, 2003	$	12.84	0.23		2.03		2.26		(0.23	)	—		(0.23	)
Year Ended September 30, 2002	$	16.79	0.18		(3.47	)	(3.29	)	(0.18	)	(0.48	)	(0.66	)
Year Ended September 30, 2001	$	18.57	0.22		(0.89	)	(0.67	)	(0.22	)	(0.89	)	(1.11	)
Large Cap Growth Fund
For the Six Months Ended March 31, 2006 (Unaudited)	$	8.97	0.01	(c)	0.30		0.31		(0.01	)	—		(0.01	)
Year Ended September 30, 2005	$	8.22	0.02	(c)	0.77		0.79		(0.04	)	—		(0.04	)
Year Ended September 30, 2004	$	7.69	(0.01	)	0.54		0.53		—		—		—
Year Ended September 30, 2003	$	6.60	(0.02	)	1.11		1.09		—		—		—
Year Ended September 30, 2002	$	8.16	(0.06	)	(1.50	)	(1.56	)	—		—		—
Year Ended September 30, 2001	$	14.75	(0.05	)	(5.56	)	(5.61	)	—		(0.98	)	(0.98	)
Mid Cap Value Fund
For the Six Months Ended March 31, 2006 (Unaudited)	$	13.35	0.02		1.25		1.27		(0.02	)	(1.45	)	(1.47	)
Year Ended September 30, 2005	$	15.40	0.13	(c)	3.04		3.17		(0.13	)	(5.09	)	(5.22	)
Year Ended September 30, 2004	$	12.98	0.18	(c)	2.42		2.60		(0.18	)	—		(0.18	)
Year Ended September 30, 2003	$	10.93	0.16	(c)	2.04		2.20		(0.15	)	—		(0.15	)
Year Ended September 30, 2002	$	13.12	0.17	(c)	(1.04	)	(0.87	)	(0.17	)	(1.15	)	(1.32	)
February 1, 2001 to September 30, 2001 (b)	$	14.26	0.15		(1.15	)	(1.00	)	(0.14	)	—		(0.14	)
Year Ended January 31, 2001	$	14.10	0.22		0.94		1.16		(0.21	)	(0.79	)	(1.00	)
Mid Cap Growth Fund
For the Six Months Ended March 31, 2006 (Unaudited)	$	13.90	0.02	(c)	1.58		1.60		(0.02	)	(1.42	)	(1.44	)
Year Ended September 30, 2005	$	10.95	(0.09	)(c)	3.18		3.09		—		(0.14	)	(0.14	)
Year Ended September 30, 2004	$	9.84	(0.08	)	1.19		1.11		—		—		—
Year Ended September 30, 2003	$	8.07	(0.09	)	1.86		1.77		—		—		—
Year Ended September 30, 2002	$	9.80	(0.08	)	(1.02	)	(1.10	)	—		(0.63	)	(0.63	)
February 1, 2001 to September 30, 2001 (b)	$	14.42	(0.07	)	(4.55	)	(4.62	)	—		—		—
Year Ended January 31, 2001	$	20.36	(0.13	)	(1.99	)	(2.12	)	—		(3.82	)	(3.82	)
Small Cap Fund
For the Six Months Ended March 31, 2006 (Unaudited)	$	16.38	0.07		1.63		1.70		(0.02	)	(2.30	)	(2.32	)
Year Ended September 30, 2005	$	14.21	0.11	(c)	2.62		2.73		(0.14	)	(0.42	)	(0.56	)
Year Ended September 30, 2004	$	11.44	—	(c)(d)	2.90		2.90		(0.01	)	(0.12	)	(0.13	)
May 19, 2003 to September 30, 2003 (a)	$	10.00	0.01	(c)	1.43		1.44		—	(d)	—		—	(d)
International Equity Fund
For the Six Months Ended March 31, 2006 (Unaudited)	$	9.58	0.01		1.17		1.18		—	(d)	—		—	(d)
Year Ended September 30, 2005	$	8.12	0.10	(c)	1.47		1.57		(0.11	)	—		(0.11	)
Year Ended September 30, 2004	$	6.88	0.07	(c)	1.25		1.32		(0.08	)	—		(0.08	)
Year Ended September 30, 2003	$	6.31	0.06	(c)	0.54		0.60		(0.03	)	—		(0.03	)
Year Ended September 30, 2002	$	7.43	(0.02	)(c)	(1.10	)	(1.12	)	—		—		—
Year Ended September 30, 2001	$	12.49	(0.05	)	(2.99	)	(3.04	)	—		(2.02	)	(2.02	)
Special Opportunities Equity Fund
For the Six Months Ended March 31, 2006 (Unaudited)	$	15.57	(0.01	)	0.51		0.50		—		(0.79	)	(0.79	)
Year Ended September 30, 2005	$	13.08	(0.07	)	2.68		2.61		—		(0.12	)	(0.12	)
Year Ended September 30, 2004	$	10.53	(0.06	)	2.69		2.63		—		(0.08	)	(0.08	)
June 2, 2003 to September 30, 2003 (a)	$	10.00	(0.01	)	0.54		0.53		—		—		—
Equity Income Fund
For the Six Months Ended March 31, 2006 (Unaudited)	$	12.09	0.15		0.76		0.91		(0.14	)	(0.27	)	(0.41	)
Year Ended September 30, 2005	$	10.35	0.24		1.77		2.01		(0.25	)	(0.02	)	(0.27	)
June 30, 2004 to September 30, 2004 (a)	$	10.00	0.05	(c)	0.34		0.39		(0.04	)	—		(0.04	)

* During the period certain fees were reduced. If such reductions had not occurred, the ratios would have been as indicated.

** Portfolio turnover rate is calculated on the basis of the Fund as a whole without distinguishing between classes of shares issued.

(a) Period from commencement of operations.

(b) For the period from February 1, 2001 to September 30, 2001. Upon reorganizing as Funds of the BB&T Funds, the Mid Cap Value Fund and Mid Cap Growth Fund changed their fiscal year end from January 31 to September 30, 2001. The Financial Highlights for the periods prior to February 1, 2001 represent the OVB Equity Income Portfolio and OVB Capital Appreciation Portfolio, respectively.

(c) Per share net investment income (loss) has been calculated using the average daily shares method.

(d) Amount is less than $0.005.

(e) Not annualized for periods less than one year.

(f) Annualized for periods less than one year.

See accompanying notes to the financial statements.

76

				Ratios/Supplementary Data
Net Asset Value, End of Period		Total Return (excludes sales charge) (e)		Net Assets, End of Period (000)		Ratio of net expenses to average net assets (f)		Ratio of net investment income (loss) to average net assets (f)		Ratio of expenses to average net assets* (f)		Portfolio turnover rate**
$	19.27	7.56	%	$	43,396	1.13	%	1.77	%	1.44	%	12.55	%
$	19.47	14.60	%	$	39,756	1.14	%	1.56	%	1.48	%	19.50	%
$	17.26	17.61	%	$	31,783	1.20	%	1.32	%	1.56	%	16.40	%
$	14.87	17.73	%	$	25,397	1.17	%	1.67	%	1.55	%	18.89	%
$	12.84	(20.57	)%	$	22,222	1.23	%	1.11	%	1.62	%	23.02	%
$	16.79	(3.77	)%	$	29,942	1.24	%	1.23	%	1.63	%	24.20	%
$	9.27	3.43	%	$	9,098	1.13	%	0.19	%	1.44	%	78.17	%
$	8.97	9.62	%	$	9,116	1.14	%	0.38	%	1.49	%	62.78	%
$	8.22	6.89	%	$	8,784	1.22	%	(0.33	)%	1.58	%	127.47	%
$	7.69	16.52	%	$	7,042	1.18	%	(0.35	)%	1.57	%	91.73	%
$	6.60	(19.12	)%	$	6,240	1.28	%	(0.57	)%	1.67	%	100.46	%
$	8.16	(40.36	)%	$	8,146	1.30	%	(0.48	)%	1.69	%	96.41	%
$	13.15	10.16	%	$	13,648	1.13	%	0.37	%	1.19	%	25.52	%
$	13.35	20.82	%	$	12,361	1.15	%	0.76	%	1.25	%	126.99	%
$	15.40	20.10	%	$	9,423	1.23	%	1.22	%	1.35	%	19.17	%
$	12.98	20.31	%	$	6,841	1.20	%	1.33	%	1.35	%	18.28	%
$	10.93	(8.24	)%	$	5,070	1.15	%	1.29	%	1.38	%	18.20	%
$	13.12	(7.09	)%	$	4,554	1.20	%	1.45	%	1.37	%	27.04	%
$	14.26	8.76	%	$	5,691	1.21	%	1.54	%	1.36	%	59.00	%
$	14.06	12.38	%	$	12,008	1.13	%	0.33	%	1.19	%	51.24	%
$	13.90	28.45	%	$	10,444	1.14	%	(0.71	)%	1.26	%	92.74	%
$	10.95	11.28	%	$	8,079	1.25	%	(0.90	)%	1.36	%	138.61	%
$	9.84	21.93	%	$	6,486	1.19	%	(0.96	)%	1.36	%	125.97	%
$	8.07	(12.54	)%	$	5,533	1.17	%	(0.88	)%	1.44	%	117.06	%
$	9.80	(32.04	)%	$	7,386	1.25	%	(0.52	)%	1.47	%	90.11	%
$	14.42	(10.84	)%	$	12,285	1.27	%	(0.37	)%	1.48	%	63.00	%
$	15.76	11.52	%	$	9,692	1.26	%	0.47	%	1.71	%	24.47	%
$	16.38	19.64	%	$	1,604	1.29	%	0.69	%	1.77	%	8.39	%
$	14.21	25.53	%	$	353	1.48	%	(0.03	)%	1.91	%	11.25	%
$	11.44	14.43	%	$	112	2.04	%	0.35	%	2.29	%	48.84	%
$	10.76	12.33	%	$	3,615	1.41	%	0.17	%	1.76	%	23.63	%
$	9.58	19.46	%	$	3,687	1.46	%	1.15	%	1.83	%	44.96	%
$	8.12	19.25	%	$	1,686	1.58	%	0.91	%	1.92	%	50.68	%
$	6.88	9.58	%	$	2,162	1.63	%	0.95	%	1.90	%	199.78	%
$	6.31	(15.07	)%	$	1,412	1.68	%	(0.24	)%	1.93	%	95.86	%
$	7.43	(28.52	)%	$	2,557	1.74	%	(0.33	)%	1.99	%	144.35	%
$	15.28	3.38	%	$	78,350	1.28	%	(0.05	)%	1.53	%	28.65	%
$	15.57	20.05	%	$	75,627	1.30	%	(0.41	)%	1.57	%	30.38	%
$	13.08	25.06	%	$	28,903	1.42	%	(0.77	)%	1.80	%	32.06	%
$	10.53	5.30	%	$	5,460	1.06	%	(0.42	)%	2.02	%	13.24	%
$	12.59	7.64	%	$	50,510	1.19	%	2.61	%	1.44	%	25.66	%
$	12.09	19.55	%	$	40,825	1.10	%	2.57	%	1.57	%	39.65	%
$	10.35	3.89	%	$	6,342	1.54	%	1.79	%	2.14	%	1.65	%

See accompanying notes to the financial statements.

77

BB&T Funds

Financial Highlights, Class A Shares

Selected data for a share of beneficial interest outstanding throughout the periods indicated.

			Investment Activities						Dividends
	Net Asset Value, Beginning of Period		Net investment income (loss)		Net realized/ unrealized gains (losses) on investments		Total from Investment Activities		Net investment income		Net realized gains on investments		Total Dividends
Short U.S. Government Fund
For the Six Months Ended March 31, 2006 (Unaudited)	$	9.50	0.12		(0.06	)	0.06		(0.15	)	—		(0.15	)
Year Ended September 30, 2005	$	9.70	0.23		(0.14	)	0.09		(0.29	)	—		(0.29	)
Year Ended September 30, 2004	$	9.89	0.17		(0.10	)	0.07		(0.26	)	—		(0.26	)
Year Ended September 30, 2003	$	10.08	0.27		(0.11	)	0.16		(0.35	)	—		(0.35	)
Year Ended September 30, 2002	$	10.04	0.43	(c)	0.06	(c)	0.49		(0.45	)	—		(0.45	)
Year Ended September 30, 2001	$	9.63	0.51		0.41		0.92		(0.51	)	—		(0.51	)
Intermediate U.S. Government Fund
For the Six Months Ended March 31, 2006 (Unaudited)	$	10.01	0.21		(0.24	)	(0.03	)	(0.21	)	—		(0.21	)
Year Ended September 30, 2005	$	10.24	0.35	(b)	(0.15	)	0.20		(0.38	)	(0.05	)	(0.43	)
Year Ended September 30, 2004	$	10.57	0.32		(0.19	)	0.13		(0.33	)	(0.13	)	(0.46	)
Year Ended September 30, 2003	$	10.77	0.35		(0.07	)	0.28		(0.39	)	(0.09	)	(0.48	)
Year Ended September 30, 2002	$	10.38	0.47	(d)	0.42	(d)	0.89		(0.50	)	—		(0.50	)
Year Ended September 30, 2001	$	9.71	0.51		0.68		1.19		(0.52	)	—		(0.52	)
Total Return Bond Fund
For the Six Months Ended March 31, 2006 (Unaudited)	$	10.31	0.20		(0.23	)	(0.03	)	(0.21	)	(0.05	)	(0.26	)
Year Ended September 30, 2005	$	10.59	0.38	(b)	(0.19	)	0.19		(0.44	)	(0.03	)	(0.47	)
Year Ended September 30, 2004	$	10.72	0.41		(0.08	)	0.33		(0.46	)	—		(0.46	)
Year Ended September 30, 2003	$	10.33	0.47		0.41		0.88		(0.49	)	—		(0.49	)
Year Ended September 30, 2002	$	10.56	0.53	(e)	(0.04	)(e)	0.49		(0.55	)	(0.17	)	(0.72	)
Year Ended September 30, 2001	$	9.98	0.60		0.58		1.18		(0.60	)	—		(0.60	)
Kentucky Intermediate Tax-Free Fund
For the Six Months Ended March 31, 2006 (Unaudited)	$	10.06	0.15		(0.11	)	0.04		(0.15	)	—		(0.15	)
Year Ended September 30, 2005	$	10.22	0.27	(b)	(0.16	)	0.11		(0.27	)	—		(0.27	)
Year Ended September 30, 2004	$	10.23	0.27	(b)	(0.01	)	0.26		(0.27	)	—		(0.27	)
February 24, 2003 to September 30, 2003 (a)	$	10.00	0.15	(b)	0.35		0.50		(0.27	)	—		(0.27	)
Maryland Intermediate Tax-Free Fund
For the Six Months Ended March 31, 2006 (Unaudited)	$	10.02	0.14		(0.12	)	0.02		(0.14	)	—		(0.14	)
Year Ended September 30, 2005	$	10.15	0.26	(b)	(0.13	)	0.13		(0.26	)	—		(0.26	)
Year Ended September 30, 2004	$	10.15	0.24		—	(f)	0.24		(0.24	)	—		(0.24	)
February 24, 2003 to September 30, 2003 (a)	$	10.00	0.18		0.15		0.33		(0.18	)	—		(0.18	)
North Carolina Intermediate Tax-Free Fund
For the Six Months Ended March 31, 2006 (Unaudited)	$	10.46	0.18		(0.15	)	0.03		(0.17	)	(0.09	)	(0.26	)
Year Ended September 30, 2005	$	10.67	0.35		(0.19	)	0.16		(0.35	)	(0.02	)	(0.37	)
Year Ended September 30, 2004	$	10.81	0.32		(0.10	)	0.22		(0.32	)	(0.04	)	(0.36	)
Year Ended September 30, 2003	$	10.86	0.33		(0.01	)	0.32		(0.33	)	(0.04	)	(0.37	)
Year Ended September 30, 2002	$	10.54	0.36		0.40		0.76		(0.36	)	(0.08	)	(0.44	)
Year Ended September 30, 2001	$	9.97	0.38		0.57		0.95		(0.38	)	—		(0.38	)
South Carolina Intermediate Tax-Free Fund
For the Six Months Ended March 31, 2006 (Unaudited)	$	10.54	0.17		(0.15	)	0.02		(0.17	)	(0.18	)	(0.35	)
Year Ended September 30, 2005	$	10.81	0.34		(0.19	)	0.15		(0.34	)	(0.08	)	(0.42	)
Year Ended September 30, 2004	$	10.88	0.34		(0.07	)	0.27		(0.33	)	(0.01	)	(0.34	)
Year Ended September 30, 2003	$	10.87	0.34		0.01		0.35		(0.34	)	—		(0.34	)
Year Ended September 30, 2002	$	10.46	0.37		0.41		0.78		(0.37	)	—		(0.37	)
Year Ended September 30, 2001	$	9.90	0.38		0.56		0.94		(0.38	)	—		(0.38	)
Virginia Intermediate Tax-Free Fund
For the Six Months Ended March 31, 2006 (Unaudited)	$	11.49	0.20		(0.18	)	0.02		(0.20	)	(0.06	)	(0.26	)
Year Ended September 30, 2005	$	11.74	0.39		(0.22	)	0.17		(0.40	)	(0.02	)	(0.42	)
Year Ended September 30, 2004	$	11.96	0.38		(0.14	)	0.24		(0.38	)	(0.08	)	(0.46	)
Year Ended September 30, 2003	$	11.99	0.37		0.01		0.38		(0.37	)	(0.04	)	(0.41	)
Year Ended September 30, 2002	$	11.57	0.41		0.42		0.83		(0.41	)	—		(0.41	)
Year Ended September 30, 2001	$	10.96	0.42		0.61		1.03		(0.42	)	—		(0.42	)

* During the period certain fees were reduced. If such reductions had not occurred, the ratios would have been as indicated.

** Portfolio turnover rate is calculated on the basis of the Fund as a whole without distinguishing between classes of shares issued.

(a) Period from commencement of operations.

(b) Per share net investment income (loss) has been calculated using the average daily shares method.

(c) Without the adoption of the change in amortization method as required by the November 2000 revised version of the AICPA Audit and Accounting Guide for Investment Companies, the amounts for net investment income, net realized/unrealized gains (losses), and the net investment income ratio would have been: $0.47, $0.02, and 4.38%, respectively.

(d) Without the adoption of the change in amortization method as required by the November 2000 revised version of the AICPA Audit and Accounting Guide for Investment Companies, the amounts for net investment income, net realized/unrealized gains (losses), and the net investment income ratio would have been: $0.49, $0.40, and 4.74%, respectively.

(e) Without the adoption of the change in amortization method as required by the November 2000 revised version of the AICPA Audit and Accounting Guide for Investment Companies, the amounts for net investment income, net realized/unrealized gains (losses), and the net investment income ratio would have been: $0.54, $(0.05), and 5.23%, respectively.

(f) Amount is less than $0.005.

(g) Not annualized for periods less than one year.

(h) Annualized for periods less than one year.

See accompanying notes to the financial statements.

78

				Ratios/Supplementary Data
Net Asset Value, End of Period		Total Return (excludes sales charge) (g)		Net Assets, End of Period (000)		Ratio of net expenses to average net assets (h)		Ratio of net investment income (loss) to average net assets (h)		Ratio of expenses to average net assets* (h)		Portfolio turnover rate**
$	9.41	0.69	%	$	7,046	0.90	%	2.65	%	1.30	%	10.30	%
$	9.50	0.96	%	$	7,980	0.91	%	2.40	%	1.34	%	33.67	%
$	9.70	0.71	%	$	8,456	0.99	%	1.85	%	1.41	%	62.59	%
$	9.89	1.56	%	$	9,619	1.00	%	2.48	%	1.40	%	93.86	%
$	10.08	5.03	%	$	5,286	1.03	%	4.03	%(c)	1.43	%	73.93	%
$	10.04	9.73	%	$	3,530	1.03	%	5.12	%	1.43	%	101.28	%
$	9.77	(0.36	)%	$	10,809	0.94	%	4.17	%	1.29	%	69.65	%
$	10.01	1.98	%	$	13,744	0.96	%	3.41	%	1.33	%	107.04	%
$	10.24	1.30	%	$	11,959	1.05	%	2.90	%	1.42	%	98.35	%
$	10.57	2.62	%	$	9,646	1.07	%	3.13	%	1.42	%	209.07	%
$	10.77	8.85	%	$	6,453	1.10	%	4.56	%(d)	1.45	%	79.36	%
$	10.38	12.53	%	$	4,450	1.11	%	5.12	%	1.46	%	84.76	%
$	10.02	(0.34	)%	$	6,399	0.94	%	3.94	%	1.29	%	102.82	%
$	10.31	1.88	%	$	7,254	0.96	%	3.62	%	1.33	%	173.74	%
$	10.59	3.22	%	$	4,786	1.07	%	3.84	%	1.44	%	31.95	%
$	10.72	8.69	%	$	4,308	1.08	%	4.34	%	1.44	%	43.98	%
$	10.33	4.98	%	$	2,042	1.11	%	5.11	%(e)	1.50	%	69.15	%
$	10.56	12.10	%	$	426	1.06	%	5.76	%	1.45	%	142.35	%
$	9.95	0.36	%	$	2,591	0.90	%	2.92	%	1.37	%	24.39	%
$	10.06	1.06	%	$	2,566	0.89	%	2.65	%	1.47	%	37.50	%
$	10.22	2.55	%	$	2,746	0.78	%	2.63	%	1.57	%	24.78	%
$	10.23	5.09	%	$	1,877	0.62	%	2.50	%	1.65	%	42.87	%
$	9.90	0.24	%	$	1,625	0.85	%	2.88	%	1.41	%	86.10	%
$	10.02	1.28	%	$	1,609	0.81	%	2.57	%	1.52	%	44.67	%
$	10.15	2.37	%	$	667	0.75	%	2.32	%	1.73	%	55.18	%
$	10.15	3.32	%	$	482	0.72	%	2.22	%	2.24	%	40.16	%
$	10.23	0.34	%	$	22,416	0.90	%	3.45	%	1.30	%	38.76	%
$	10.46	1.49	%	$	21,600	0.90	%	3.29	%	1.36	%	60.84	%
$	10.67	2.10	%	$	22,689	0.90	%	3.03	%	1.42	%	67.80	%
$	10.81	3.04	%	$	25,323	0.92	%	3.11	%	1.42	%	44.56	%
$	10.86	7.46	%	$	23,828	0.93	%	3.41	%	1.43	%	20.39	%
$	10.54	9.69	%	$	18,718	0.93	%	3.66	%	1.43	%	47.35	%
$	10.21	0.19	%	$	4,145	0.94	%	3.27	%	1.36	%	26.82	%
$	10.54	1.39	%	$	4,072	0.92	%	3.20	%	1.40	%	56.03	%
$	10.81	2.60	%	$	4,149	0.90	%	3.11	%	1.44	%	32.63	%
$	10.88	3.29	%	$	4,680	0.86	%	3.14	%	1.43	%	32.04	%
$	10.87	7.67	%	$	4,128	0.83	%	3.52	%	1.48	%	21.81	%
$	10.46	9.67	%	$	2,143	0.87	%	3.73	%	1.52	%	36.67	%
$	11.25	0.17	%	$	12,030	0.90	%	3.55	%	1.30	%	52.88	%
$	11.49	1.44	%	$	13,145	0.89	%	3.39	%	1.36	%	48.04	%
$	11.74	2.05	%	$	13,005	0.91	%	3.22	%	1.43	%	45.07	%
$	11.96	3.24	%	$	7,447	0.92	%	3.14	%	1.42	%	34.17	%
$	11.99	7.36	%	$	3,041	0.96	%	3.45	%	1.46	%	13.12	%
$	11.57	9.58	%	$	714	0.90	%	3.71	%	1.40	%	31.28	%

See accompanying notes to the financial statements.

79

BB&T Funds

Financial Highlights, Class A Shares

Selected data for a share of beneficial interest outstanding throughout the periods indicated.

			Investment Activities						Dividends
	Net Asset Value, Beginning of Period		Net investment income (loss)		Net realized/ unrealized gains (losses) on investments		Total from Investment Activities		Net investment income		Net realized gains on investments		Total Dividends
West Virginia Intermediate Tax-Free Fund
For the Six Months Ended March 31, 2006 (Unaudited)	$	9.85	0.18	(c)	(0.11	)	0.07		(0.18	)	(0.06	)	(0.24	)
Year Ended September 30, 2005	$	10.08	0.35	(c)	(0.15	)	0.20		(0.35	)	(0.08	)	(0.43	)
Year Ended September 30, 2004	$	10.20	0.32		(0.07	)	0.25		(0.33	)	(0.04	)	(0.37	)
Year Ended September 30, 2003	$	10.35	0.33	(c)	0.01		0.34		(0.33	)	(0.16	)	(0.49	)
Year Ended September 30, 2002	$	10.01	0.43		0.31		0.74		(0.38	)	(0.02	)	(0.40	)
February 1, 2001 to September 30, 2001 (a)	$	9.92	0.29		0.09		0.38		(0.29	)	—		(0.29	)
Year Ended January 31, 2001	$	9.18	0.46		0.74		1.20		(0.46	)	—		(0.46	)
Prime Money Market Fund
For the Six Months Ended March 31, 2006 (Unaudited)	$	1.00	0.02		—	(d)	0.02		(0.02	)	—		(0.02	)
Year Ended September 30, 2005	$	1.00	0.02		—	(d)	0.02		(0.02	)	—		(0.02	)
Year Ended September 30, 2004	$	1.00	—	(d)	—	(d)	—	(d)	—	(d)	—		—	(d)
Year Ended September 30, 2003	$	1.00	—	(d)	—		—	(d)	—	(d)	—		—	(d)
Year Ended September 30, 2002	$	1.00	0.01		—		0.01		(0.01	)	—		(0.01	)
Year Ended September 30, 2001	$	1.00	0.04		—		0.04		(0.04	)	—		(0.04	)
U.S. Treasury Money Market Fund
For the Six Months Ended March 31, 2006 (Unaudited)	$	1.00	0.02		—		0.02		(0.02	)	—		(0.02	)
Year Ended September 30, 2005	$	1.00	0.02		—		0.02		(0.02	)	—		(0.02	)
Year Ended September 30, 2004	$	1.00	—	(d)	—		—	(d)	—	(d)	—		—	(d)
Year Ended September 30, 2003	$	1.00	—	(d)	—		—	(d)	—	(d)	—		—	(d)
Year Ended September 30, 2002	$	1.00	0.01		—	(d)	0.01		(0.01	)	—		(0.01	)
Year Ended September 30, 2001	$	1.00	0.04		—		0.04		(0.04	)	—		(0.04	)
Capital Manager Conservative Growth Fund
For the Six Months Ended March 31, 2006 (Unaudited)	$	9.76	0.15		0.13		0.28		(0.16	)	—		(0.16	)
Year Ended September 30, 2005	$	9.30	0.23		0.45		0.68		(0.22	)	—		(0.22	)
Year Ended September 30, 2004	$	8.84	0.16	(c)	0.46		0.62		(0.16	)	—		(0.16	)
Year Ended September 30, 2003	$	8.29	0.18		0.57		0.75		(0.16	)	(0.04	)	(0.20	)
Year Ended September 30, 2002	$	9.12	0.23		(0.68	)	(0.45	)	(0.20	)	(0.18	)	(0.38	)
Year Ended September 30, 2001	$	10.71	0.28		(0.99	)	(0.71	)	(0.30	)	(0.58	)	(0.88	)
Capital Manager Moderate Growth Fund
For the Six Months Ended March 31, 2006 (Unaudited)	$	9.79	0.13		0.35		0.48		(0.14	)	—		(0.14	)
Year Ended September 30, 2005	$	9.01	0.17	(c)	0.76		0.93		(0.15	)	—		(0.15	)
Year Ended September 30, 2004	$	8.28	0.08	(c)	0.73		0.81		(0.08	)	—		(0.08	)
Year Ended September 30, 2003	$	7.47	0.08		0.82		0.90		(0.08	)	(0.01	)	(0.09	)
Year Ended September 30, 2002	$	8.82	0.12		(0.99	)	(0.87	)	(0.11	)	(0.37	)	(0.48	)
Year Ended September 30, 2001	$	11.25	0.23		(1.70	)	(1.47	)	(0.24	)	(0.72	)	(0.96	)
Capital Manager Growth Fund
For the Six Months Ended March 31, 2006 (Unaudited)	$	9.68	0.11		0.47		0.58		(0.12	)	—		(0.12	)
Year Ended September 30, 2005	$	8.70	0.13		0.96		1.09		(0.11	)	—		(0.11	)
Year Ended September 30, 2004	$	7.81	0.05	(c)	0.88		0.93		(0.04	)	—		(0.04	)
Year Ended September 30, 2003	$	6.87	0.04		0.94		0.98		(0.04	)	—		(0.04	)
Year Ended September 30, 2002	$	8.46	0.03		(1.20	)	(1.17	)	(0.02	)	(0.40	)	(0.42	)
Year Ended September 30, 2001	$	11.66	0.16		(2.43	)	(2.27	)	(0.16	)	(0.77	)	(0.93	)
Capital Manager Equity Fund
For the Six Months Ended March 31, 2006 (Unaudited)	$	10.95	0.11		0.72		0.83		(0.12	)	(0.19	)	(0.31	)
Year Ended September 30, 2005	$	9.58	0.09	(c)	1.34		1.43		(0.06	)	—		(0.06	)
Year Ended September 30, 2004	$	8.45	0.02	(c)	1.12		1.14		(0.01	)	—		(0.01	)
Year Ended September 30, 2003	$	7.36	—	(c)(d)	1.15		1.15		(0.01	)	(0.05	)	(0.06	)
Year Ended September 30, 2002	$	8.96	(0.02	)	(1.58	)	(1.60	)	—		—		—
March 19, 2001 to September 30, 2001 (b)	$	10.00	—	(d)	(1.03	)	(1.03	)	(0.01	)	—		(0.01	)

* During the period certain fees were voluntarily reduced. If such reductions had not occurred, the ratios would have been as indicated.

** Portfolio turnover rate is calculated on the basis of the Fund as a whole without distinguishing between classes of shares issued.

(a) For the period from February 1, 2001 to September 30, 2001. Upon reorganizing as a Fund of the BB&T Funds, the West Virginia Intermediate Tax-Free Fund changed its fiscal year end from January 31 to September 30, 2001. The Financial Highlights for the periods prior to February 1, 2001 represent the OVB West Virginia Tax-Exempt Income Portfolio.

(b) Period from commencement of operations.

(c) Per share net investment income(loss) has been calculated using the average daily shares method.

(d) Amount is less than $0.005.

(e) Not annualized for periods less than one year.

(f) Annualized for periods less than one year.

See accompanying notes to the financial statements.

80

				Ratios/Supplementary Data
Net Asset Value, End of Period		Total Return (excludes sales charge) (e)		Net Assets, End of Period (000)		Ratio of net expenses to average net assets (f)		Ratio of net investment income (loss) to average net assets (f)		Ratio of expenses to average net assets* (f)		Portfolio turnover rate**
$	9.68	0.72	%	$	15,268	0.91	%	3.68	%	0.91	%	21.79	%
$	9.85	1.97	%	$	13,911	0.93	%	3.50	%	0.96	%	32.10	%
$	10.08	2.51	%	$	10,815	1.01	%	3.24	%	1.03	%	16.24	%
$	10.20	3.41	%	$	11,541	0.98	%	3.23	%	1.01	%	25.59	%
$	10.35	7.61	%	$	10,029	0.97	%	3.78	%	1.13	%	61.44	%
$	10.01	3.67	%	$	7,992	0.88	%	4.40	%	1.05	%	15.75	%
$	9.92	13.42	%	$	9,235	0.97	%	4.86	%	1.08	%	7.00	%
$	1.00	1.68	%	$	554,592	0.98	%	3.37	%	1.09	%	—
$	1.00	1.92	%	$	493,282	0.91	%	1.91	%	1.13	%	—
$	1.00	0.41	%	$	426,217	0.86	%	0.40	%	1.20	%	—
$	1.00	0.48	%	$	459,375	0.98	%	0.47	%	1.19	%	—
$	1.00	1.21	%	$	416,782	1.05	%	1.20	%	1.23	%	—
$	1.00	4.42	%	$	396,119	1.01	%	4.22	%	1.24	%	—
$	1.00	1.56	%	$	119,944	0.97	%	3.12	%	1.10	%	—
$	1.00	1.69	%	$	114,260	0.89	%	1.66	%	1.14	%	—
$	1.00	0.31	%	$	122,500	0.79	%	0.31	%	1.21	%	—
$	1.00	0.30	%	$	135,059	0.99	%	0.32	%	1.20	%	—
$	1.00	1.01	%	$	197,830	1.05	%	1.01	%	1.24	%	—
$	1.00	4.20	%	$	208,914	1.03	%	4.08	%	1.23	%	—
$	9.88	2.91	%	$	9,580	0.34	%	3.24	%	0.95	%	2.74	%
$	9.76	7.39	%	$	8,646	0.43	%	2.45	%	1.01	%	52.50	%
$	9.30	6.97	%	$	5,242	0.69	%	1.68	%	1.14	%	2.47	%
$	8.84	9.09	%	$	2,579	0.78	%	1.86	%	1.23	%	33.03	%
$	8.29	(5.18	)%	$	1,198	0.79	%	2.25	%	1.24	%	6.29	%
$	9.12	(7.10	)%	$	555	0.78	%	2.87	%	1.23	%	35.75	%
$	10.13	4.92	%	$	33,015	0.36	%	2.77	%	0.97	%	5.89	%
$	9.79	10.35	%	$	28,912	0.48	%	1.77	%	1.05	%	37.83	%
$	9.01	9.77	%	$	20,428	0.74	%	0.92	%	1.19	%	0.17	%
$	8.28	12.13	%	$	8,054	0.75	%	1.11	%	1.20	%	21.46	%
$	7.47	(10.76	)%	$	3,194	0.81	%	1.26	%	1.26	%	14.56	%
$	8.82	(14.00	)%	$	2,206	0.78	%	2.14	%	1.23	%	24.24	%
$	10.14	6.07	%	$	21,120	0.37	%	2.49	%	0.98	%	5.59	%
$	9.68	12.51	%	$	17,219	0.48	%	1.37	%	1.07	%	26.22	%
$	8.70	11.85	%	$	12,007	0.75	%	0.52	%	1.23	%	0.19	%
$	7.81	14.22	%	$	4,660	0.80	%	0.59	%	1.25	%	17.80	%
$	6.87	(14.82	)%	$	2,700	0.87	%	0.39	%	1.32	%	8.38	%
$	8.46	(20.86	)%	$	2,511	0.84	%	1.35	%	1.29	%	27.33	%
$	11.47	7.75	%	$	7,065	0.36	%	2.12	%	0.98	%	1.05	%
$	10.95	14.95	%	$	6,183	0.45	%	0.91	%	1.09	%	2.14	%
$	9.58	13.53	%	$	3,557	0.77	%	0.22	%	1.31	%	3.10	%
$	8.45	15.61	%	$	1,225	0.95	%	0.05	%	1.40	%	8.30	%
$	7.36	(17.86	)%	$	645	0.90	%	(0.15	)%	1.35	%	5.75	%
$	8.96	(10.35	)%	$	185	1.12	%	(0.28	)%	1.57	%	10.10	%

See accompanying notes to the financial statements.

81

BB&T Funds

Financial Highlights, Class B Shares

Selected data for a share of beneficial interest outstanding throughout the periods indicated.

			Investment Activities						Dividends
	Net Asset Value, Beginning of Period		Net investment income (loss)		Net realized/ unrealized gains (losses) on investments and foreign currency transactions		Total from Investment Activities		Net investment income		Net realized gains on investments and foreign currency transactions		Total Dividends
Large Cap Fund
For the Six Months Ended March 31, 2006 (Unaudited)	$	19.31	0.09		1.23		1.32		(0.09	)	(1.44	)	(1.53	)
Year Ended September 30, 2005	$	17.12	0.13		2.22		2.35		(0.16	)	—		(0.16	)
Year Ended September 30, 2004	$	14.75	0.09		2.38		2.47		(0.10	)	—		(0.10	)
Year Ended September 30, 2003	$	12.75	0.12		2.01		2.13		(0.13	)	—		(0.13	)
Year Ended September 30, 2002	$	16.68	0.06		(3.44	)	(3.38	)	(0.07	)	(0.48	)	(0.55	)
Year Ended September 30, 2001	$	18.47	0.09		(0.89	)	(0.80	)	(0.10	)	(0.89	)	(0.99	)
Large Cap Growth Fund
For the Six Months Ended March 31, 2006 (Unaudited)	$	8.47	(0.02	)(b)	0.27		0.25		—		—		—
Year Ended September 30, 2005	$	7.80	(0.03	)(b)	0.72		0.69		(0.02	)	—		(0.02	)
Year Ended September 30, 2004	$	7.36	(0.13	)	0.57		0.44		—		—		—
Year Ended September 30, 2003	$	6.36	(0.08	)(b)	1.08		1.00		—		—		—
Year Ended September 30, 2002	$	7.93	(0.12	)	(1.45	)	(1.57	)	—		—		—
Year Ended September 30, 2001	$	14.47	(0.11	)	(5.45	)	(5.56	)	—		(0.98	)	(0.98	)
Mid Cap Value Fund
For the Six Months Ended March 31, 2006 (Unaudited)	$	13.16	(0.02	)	1.23		1.21		—		(1.45	)	(1.45	)
Year Ended September 30, 2005	$	15.30	—	(b)(c)	3.02		3.02		(0.07	)	(5.09	)	(5.16	)
Year Ended September 30, 2004	$	12.91	0.07	(b)	2.42		2.49		(0.10	)	—		(0.10	)
Year Ended September 30, 2003	$	10.90	0.07		2.03		2.10		(0.09	)	—		(0.09	)
Year Ended September 30, 2002	$	13.10	0.08		(1.03	)	(0.95	)	(0.10	)	(1.15	)	(1.25	)
July 25, 2001 to September 30, 2001 (a)	$	14.14	0.03		(1.02	)	(0.99	)	(0.05	)	—		(0.05	)
Mid Cap Growth Fund
For the Six Months Ended March 31, 2006 (Unaudited)	$	13.47	(0.03	)(b)	1.53		1.50		—		(1.42	)	(1.42	)
Year Ended September 30, 2005	$	10.70	(0.17	)(b)	3.08		2.91		—		(0.14	)	(0.14	)
Year Ended September 30, 2004	$	9.68	(0.16	)	1.18		1.02		—		—		—
Year Ended September 30, 2003	$	8.00	(0.13	)	1.81		1.68		—		—		—
Year Ended September 30, 2002	$	9.79	(0.14	)(b)	(1.02	)	(1.16	)	—		(0.63	)	(0.63	)
July 25, 2001 to September 30, 2001 (a)	$	11.20	(0.01	)	(1.40	)	(1.41	)	—		—		—
Small Cap Fund
For the Six Months Ended March 31, 2006 (Unaudited)	$	16.11	(0.01	)	1.63		1.62		(0.01	)	(2.30	)	(2.31	)
Year Ended September 30, 2005	$	14.06	—	(b)(c)	2.58		2.58		(0.11	)	(0.42	)	(0.53	)
Year Ended September 30, 2004	$	11.40	(0.10	)(b)	2.88		2.78		—		(0.12	)	(0.12	)
May 19, 2003 to September 30, 2003 (a)	$	10.00	(0.04	)(b)	1.44		1.40		—		—		—
International Equity Fund
For the Six Months Ended March 31, 2006 (Unaudited)	$	9.09	(0.03	)	1.12		1.09		—		—		—
Year Ended September 30, 2005	$	7.74	0.03	(b)	1.38		1.41		(0.06	)	—		(0.06	)
Year Ended September 30, 2004	$	6.57	0.02	(b)	1.19		1.21		(0.04	)	—		(0.04	)
Year Ended September 30, 2003	$	6.07	(0.02	)(b)	0.54		0.52		(0.02	)	—		(0.02	)
Year Ended September 30, 2002	$	7.19	(0.07	)(b)	(1.05	)	(1.12	)	—		—		—
Year Ended September 30, 2001	$	12.24	(0.07	)	(2.96	)	(3.03	)	—		(2.02	)	(2.02	)
Special Opportunities Equity Fund
For the Six Months Ended March 31, 2006 (Unaudited)	$	15.29	(0.05	)	0.49		0.44		—		(0.79	)	(0.79	)
Year Ended September 30, 2005	$	12.95	(0.13	)	2.59		2.46		—		(0.12	)	(0.12	)
Year Ended September 30, 2004	$	10.50	(0.12	)	2.65		2.53		—		(0.08	)	(0.08	)
June 2, 2003 to September 30, 2003 (a)	$	10.00	(0.02	)	0.52		0.50		—		—		—
Equity Income Fund
For the Six Months Ended March 31, 2006 (Unaudited)	$	12.08	0.11		0.75		0.86		(0.10	)	(0.27	)	(0.37	)
Year Ended September 30, 2005	$	10.34	0.16		1.77		1.93		(0.17	)	(0.02	)	(0.19	)
June 30, 2004 to September 30, 2004 (a)	$	10.00	0.03	(b)	0.34		0.37		(0.03	)	—		(0.03	)
Intermediate U.S. Government Fund
For the Six Months Ended March 31, 2006 (Unaudited)	$	9.98	0.17		(0.24	)	(0.07	)	(0.17	)	—		(0.17	)
Year Ended September 30, 2005	$	10.20	0.27	(b)	(0.13	)	0.14		(0.31	)	(0.05	)	(0.36	)
Year Ended September 30, 2004	$	10.53	0.21		(0.16	)	0.05		(0.25	)	(0.13	)	(0.38	)
Year Ended September 30, 2003	$	10.73	0.27		(0.07	)	0.20		(0.31	)	(0.09	)	(0.40	)
Year Ended September 30, 2002	$	10.35	0.39	(d)	0.41	(d)	0.80		(0.42	)	—		(0.42	)
Year Ended September 30, 2001	$	9.69	0.45		0.65		1.10		(0.44	)	—		(0.44	)

* During the period certain fees were reduced. If such reductions had not occurred, the ratios would have been as indicated.

** Portfolio turnover rate is calculated on the basis of the Fund as a whole without distinguishing between classes of shares issued.

(a) Period from commencement of operations.

(b) Per share net investment income (loss) has been calculated using the average daily shares method.

(c) Amount is less than $0.005.

(d) Without the adoption of the change in amortization method as required by the November 2000 revised version of the AICPA Audit and Accounting Guide for Investment Companies, the amounts for net investment income, net realized/unrealized gains (losses), and the net investment income ratio would have been: $0.41, $0.39, and 3.99%, respectively.

(e) Not annualized for periods less than one year.

(f) Annualized for periods less than one year.

See accompanying notes to the financial statements.

82

				Ratios/Supplementary Data
Net Asset Value, End of Period		Total Return (excludes sales charge) (e)		Net Assets, End of Period (000)		Ratio of net expenses to average net assets (f)		Ratio of net investment income (loss) to average net assets (f)		Ratio of expenses to average net assets* (f)		Portfolio turnover rate**
$	19.10	7.17	%	$	20,384	1.88	%	1.03	%	1.94	%	12.55	%
$	19.31	13.75	%	$	22,148	1.89	%	0.82	%	1.99	%	19.50	%
$	17.12	16.75	%	$	26,309	1.95	%	0.58	%	2.06	%	16.40	%
$	14.75	16.74	%	$	26,215	1.91	%	0.92	%	2.05	%	18.89	%
$	12.75	(21.14	)%	$	24,849	1.98	%	0.36	%	2.12	%	23.02	%
$	16.68	(4.51	)%	$	33,489	1.99	%	0.48	%	2.13	%	24.20	%
$	8.72	2.95	%	$	11,761	1.88	%	(0.57	)%	1.94	%	78.17	%
$	8.47	8.89	%	$	12,621	1.89	%	(0.36	)%	1.99	%	62.78	%
$	7.80	5.98	%	$	13,845	1.96	%	(1.08	)%	2.08	%	127.47	%
$	7.36	15.72	%	$	14,217	1.93	%	(1.10	)%	2.07	%	91.73	%
$	6.36	(19.80	)%	$	13,040	2.03	%	(1.32	)%	2.17	%	100.46	%
$	7.93	(40.82	)%	$	17,089	2.05	%	(1.24	)%	2.19	%	96.41	%
$	12.92	9.74	%	$	5,366	1.88	%	(0.38	)%	1.94	%	25.52	%
$	13.16	19.94	%	$	4,534	1.89	%	0.02	%	1.99	%	126.99	%
$	15.30	19.31	%	$	3,582	1.98	%	0.47	%	2.10	%	19.17	%
$	12.91	19.31	%	$	2,071	1.95	%	0.58	%	2.10	%	18.28	%
$	10.90	(8.80	)%	$	1,158	1.91	%	0.63	%	2.12	%	18.20	%
$	13.10	(6.56	)%	$	99	1.87	%	2.22	%	2.21	%	27.04	%
$	13.55	11.99	%	$	2,887	1.88	%	(0.42	)%	1.94	%	51.24	%
$	13.47	27.42	%	$	2,395	1.91	%	(1.46	)%	2.01	%	92.74	%
$	10.70	10.54	%	$	1,973	2.00	%	(1.65	)%	2.11	%	138.61	%
$	9.68	21.00	%	$	1,030	1.95	%	(1.73	)%	2.11	%	125.97	%
$	8.00	(13.20	)%	$	507	1.76	%	(1.52	)%	2.07	%	117.06	%
$	9.79	(12.59	)%	$	48	2.11	%	(1.91	)%	2.33	%	90.11	%
$	15.42	11.16	%	$	5,317	2.07	%	(0.07	)%	2.28	%	24.47	%
$	16.11	18.79	%	$	259	2.05	%	0.00	%	2.27	%	8.39	%
$	14.06	24.56	%	$	136	2.22	%	(0.75	)%	2.41	%	11.25	%
$	11.40	14.00	%	$	29	2.69	%	(0.93	)%	2.69	%	48.84	%
$	10.18	11.99	%	$	2,062	2.16	%	(0.54	)%	2.26	%	23.63	%
$	9.09	18.34	%	$	2,007	2.20	%	0.36	%	2.33	%	44.96	%
$	7.74	18.47	%	$	2,140	2.33	%	0.24	%	2.42	%	50.68	%
$	6.57	8.63	%	$	2,012	2.40	%	(0.37	)%	2.41	%	199.78	%
$	6.07	(15.58	)%	$	2,056	2.43	%	(1.01	)%	2.43	%	95.86	%
$	7.19	(29.11	)%	$	2,680	2.49	%	(1.19	)%	2.49	%	144.35	%
$	14.94	3.04	%	$	22,633	2.03	%	(0.80	)%	2.03	%	28.65	%
$	15.29	19.09	%	$	21,911	2.06	%	(1.18	)%	2.08	%	30.38	%
$	12.95	24.17	%	$	13,215	2.15	%	(1.51	)%	2.30	%	32.06	%
$	10.50	5.00	%	$	4,360	1.80	%	(1.16	)%	2.50	%	13.24	%
$	12.57	7.20	%	$	7,658	1.94	%	1.88	%	1.94	%	25.66	%
$	12.08	18.79	%	$	5,611	1.87	%	1.74	%	2.09	%	39.65	%
$	10.34	3.66	%	$	1,672	2.29	%	1.07	%	2.65	%	1.65	%
$	9.74	(0.73	)%	$	4,920	1.69	%	3.45	%	1.80	%	69.65	%
$	9.98	1.33	%	$	5,725	1.71	%	2.67	%	1.84	%	107.04	%
$	10.20	0.55	%	$	6,883	1.80	%	2.15	%	1.92	%	98.35	%
$	10.53	1.86	%	$	7,869	1.82	%	2.42	%	1.92	%	209.97	%
$	10.73	7.96	%	$	5,981	1.85	%	3.81	%(d)	1.95	%	79.36	%
$	10.35	11.61	%	$	4,310	1.86	%	4.38	%	1.96	%	84.76	%

See accompanying notes to the financial statements.

83

BB&T Funds

Financial Highlights, Class B Shares

Selected data for a share of beneficial interest outstanding throughout the periods indicated.

			Investment Activities						Dividends
	Net Asset Value, Beginning of Period		Net investment income (loss)		Net realized/ unrealized gains (losses) on investments		Total from Investment Activities		Net investment income		Net realized gains on investments		Total Dividends
Total Return Bond Fund
For the Six Months Ended March 31, 2006 (Unaudited)	$	10.32	0.16		(0.23	)	(0.07	)	(0.17	)	(0.05	)	(0.22	)
Year Ended September 30, 2005	$	10.59	0.30	(b)	(0.18	)	0.12		(0.36	)	(0.03	)	(0.39	)
Year Ended September 30, 2004	$	10.72	0.32		(0.07	)	0.25		(0.38	)	—		(0.38	)
Year Ended September 30, 2003	$	10.34	0.39		0.40		0.79		(0.41	)	—		(0.41	)
Year Ended September 30, 2002	$	10.57	0.45	(d)	(0.04	)(d)	0.41		(0.47	)	(0.17	)	(0.64	)
Year Ended September 30, 2001	$	9.98	0.52		0.59		1.11		(0.52	)	—		(0.52	)
Prime Money Market Fund
For the Six Months Ended March 31, 2006 (Unaudited)	$	1.00	0.01		—	(c)	0.01		(0.01	)	—		(0.01	)
Year Ended September 30, 2005	$	1.00	0.01		—	(c)	0.01		(0.01	)	—		(0.01	)
Year Ended September 30, 2004	$	1.00	—	(c)	—	(c)	—	(c)	—	(c)	—		—	(c)
Year Ended September 30, 2003	$	1.00	—	(c)	—		—	(c)	—	(c)	—		—	(c)
Year Ended September 30, 2002	$	1.00	0.01		—		0.01		(0.01	)	—		(0.01	)
Year Ended September 30, 2001	$	1.00	0.04		—		0.04		(0.04	)	—		(0.04	)
U.S. Treasury Money Market Fund
For the Six Months Ended March 31, 2006 (Unaudited)	$	1.00	0.01		—		0.01		(0.01	)	—		(0.01	)
Year Ended September 30, 2005	$	1.00	0.01		—		0.01		(0.01	)	—		(0.01	)
Year Ended September 30, 2004	$	1.00	—	(c)	—		—	(c)	—	(c)	—		—	(c)
Year Ended September 30, 2003	$	1.00	—	(c)	—		—	(c)	—	(c)	—		—	(c)
Year Ended September 30, 2002	$	1.00	0.01		—		0.01		(0.01	)	—		(0.01	)
Year Ended September 30, 2001	$	1.00	0.04		—		0.04		(0.04	)	—		(0.04	)
Capital Manager Conservative Growth Fund
For the Six Months Ended March 31, 2006 (Unaudited)	$	9.76	0.12		0.14		0.26		(0.13	)	—		(0.13	)
Year Ended September 30, 2005	$	9.30	0.16		0.45		0.61		(0.15	)	—		(0.15	)
Year Ended September 30, 2004	$	8.85	0.09	(b)	0.45		0.54		(0.09	)	—		(0.09	)
Year Ended September 30, 2003	$	8.29	0.11		0.59		0.70		(0.10	)	(0.04	)	(0.14	)
Year Ended September 30, 2002	$	9.13	0.15		(0.67	)	(0.52	)	(0.14	)	(0.18	)	(0.32	)
Year Ended September 30, 2001	$	10.71	0.22		(0.98	)	(0.76	)	(0.24	)	(0.58	)	(0.82	)
Capital Manager Moderate Growth Fund
For the Six Months Ended March 31, 2006 (Unaudited)	$	9.64	0.09		0.33		0.42		(0.10	)	—		(0.10	)
Year Ended September 30, 2005	$	8.86	0.09	(b)	0.77		0.86		(0.08	)	—		(0.08	)
Year Ended September 30, 2004	$	8.15	0.02	(b)	0.71		0.73		(0.02	)	—		(0.02	)
Year Ended September 30, 2003	$	7.41	0.04		0.80		0.84		(0.09	)	(0.01	)	(0.10	)
Year Ended September 30, 2002	$	8.75	0.05		(0.97	)	(0.92	)	(0.05	)	(0.37	)	(0.42	)
Year Ended September 30, 2001	$	11.21	0.19		(1.74	)	(1.55	)	(0.19	)	(0.72	)	(0.91	)
Capital Manager Growth Fund
For the Six Months Ended March 31, 2006 (Unaudited)	$	9.51	0.09		0.45		0.54		(0.09	)	—		(0.09	)
Year Ended September 30, 2005	$	8.55	0.05	(b)	0.95		1.00		(0.04	)	—		(0.04	)
Year Ended September 30, 2004	$	7.70	(0.02	)(b)	0.87		0.85		—		—		—
Year Ended September 30, 2003	$	6.80	(0.01	)	0.91		0.90		—	(c)	—		—	(c)
Year Ended September 30, 2002	$	8.42	(0.01	)	(1.21	)	(1.22	)	—		(0.40	)	(0.40	)
Year Ended September 30, 2001	$	11.64	0.09		(2.42	)	(2.33	)	(0.12	)	(0.77	)	(0.89	)
Capital Manager Equity Fund
For the Six Months Ended March 31, 2006 (Unaudited)	$	10.67	0.07		0.68		0.75		(0.08	)	(0.19	)	(0.27	)
Year Ended September 30, 2005	$	9.36	0.01	(b)	1.31		1.32		(0.01	)	—		(0.01	)
Year Ended September 30, 2004	$	8.30	(0.05	)(b)	1.11		1.06		—		—		—
Year Ended September 30, 2003	$	7.28	(0.05	)(b)	1.12		1.07		—		(0.05	)	(0.05	)
Year Ended September 30, 2002	$	8.93	(0.04	)	(1.61	)	(1.65	)	—		—		—
March 19, 2001 to September 30, 2001 (a)	$	10.00	(0.02	)	(1.05	)	(1.07	)	—		—		—

* During the period certain fees were reduced. If such reductions had not occurred, the ratios would have been as indicated.

** Portfolio turnover rate is calculated on the basis of the Fund as a whole without distinguishing between classes of shares issued.

(a) Period from commencement of operations.

(b) Per share net investment income (loss) has been calculated using the average daily shares method.

(c) Amount is less than $0.005

(d) Without the adoption of the change in amortization method as required by the November 2000 revised version of the AICPA Audit and Accounting Guide for Investment Companies, the amounts for net investment income, net realized/unrealized gains (losses), and the net investment income ratio would have been: $0.46, $(0.05), and 4.51%, respectively.

(e) Not annualized for periods less than one year.

(f) Annualized for periods less than one year.

See accompanying notes to the financial statements.

84

				Ratios/Supplementary Data
Net Asset Value, End of Period		Total Return (excludes sales charge) (e)		Net Assets, End of Period (000)		Ratio of net expenses to average net assets (f)		Ratio of net investment income (loss) to average net assets (f)		Ratio of expenses to average net assets* (f)		Portfolio turnover rate**
$	10.03	(0.61	)%	$	5,777	1.68	%	3.18	%	1.79	%	102.82	%
$	10.32	1.21	%	$	6,161	1.71	%	2.87	%	1.84	%	173.14	%
$	10.59	2.45	%	$	6,602	1.82	%	3.09	%	1.94	%	31.95	%
$	10.72	7.77	%	$	6,358	1.83	%	3.61	%	1.94	%	43.18	%
$	10.34	4.18	%	$	4,465	1.84	%	4.39	%(d)	1.99	%	69.15	%
$	10.57	11.41	%	$	1,976	1.73	%	4.95	%	1.90	%	142.35	%
$	1.00	1.43	%	$	1,395	1.48	%	2.84	%	1.59	%
$	1.00	1.32	%	$	1,790	1.49	%	1.28	%	1.63	%	—
$	1.00	0.06	%	$	2,280	1.20	%	0.06	%	1.70	%	—
$	1.00	0.15	%	$	2,543	1.32	%	0.16	%	1.69	%	—
$	1.00	0.60	%	$	2,730	1.67	%	0.70	%	1.77	%	—
$	1.00	3.80	%	$	84,446	1.61	%	3.58	%	1.74	%	—
$	1.00	1.31	%	$	596	1.47	%	2.58	%	1.60	%
$	1.00	1.09	%	$	807	1.48	%	1.05	%	1.64	%	—
$	1.00	0.05	%	$	887	1.05	%	0.05	%	1.71	%	—
$	1.00	0.16	%	$	1,126	1.12	%	0.15	%	1.70	%	—
$	1.00	0.39	%	$	1,121	1.69	%	0.48	%	1.77	%	—
$	1.00	3.56	%	$	18,449	1.63	%	3.36	%	1.73	%	—
$	9.89	2.63	%	$	5,194	1.09	%	2.48	%	1.45	%	2.74	%
$	9.76	6.58	%	$	4,992	1.20	%	1.64	%	1.51	%	52.50	%
$	9.30	6.10	%	$	4,857	1.44	%	0.93	%	1.64	%	2.47	%
$	8.85	8.45	%	$	3,150	1.53	%	1.07	%	1.73	%	33.03	%
$	8.29	(5.94	)%	$	1,682	1.53	%	1.49	%	1.73	%	6.29	%
$	9.13	(7.50	)%	$	916	1.58	%	1.85	%	1.78	%	35.75	%
$	9.96	4.40	%	$	22,418	1.11	%	2.01	%	1.47	%	5.89	%
$	9.64	9.72	%	$	21,909	1.24	%	0.99	%	1.55	%	37.83	%
$	8.86	8.94	%	$	19,049	1.49	%	0.17	%	1.69	%	0.17	%
$	8.15	11.29	%	$	8,929	1.50	%	0.35	%	1.70	%	21.46	%
$	7.41	(11.35	)%	$	4,384	1.56	%	0.52	%	1.76	%	14.56	%
$	8.75	(14.82	)%	$	3,096	1.55	%	1.05	%	1.75	%	24.24	%
$	9.96	5.69	%	$	19,140	1.12	%	1.73	%	1.48	%	5.59	%
$	9.51	11.68	%	$	17,141	1.23	%	0.59	%	1.57	%	26.22	%
$	8.55	11.04	%	$	13,730	1.50	%	(0.23	)%	1.73	%	0.19	%
$	7.70	13.31	%	$	9,142	1.55	%	(0.16	)%	1.75	%	17.80	%
$	6.80	(15.53	)%	$	5,712	1.62	%	(0.35	)%	1.82	%	8.38	%
$	8.42	(21.44	)%	$	4,720	1.60	%	0.45	%	1.80	%	27.33	%
$	11.15	7.22	%	$	8,230	1.11	%	1.37	%	1.48	%	1.05	%
$	10.67	14.11	%	$	7,515	1.21	%	0.11	%	1.58	%	2.14	%
$	9.36	12.77	%	$	5,720	1.52	%	(0.54	)%	1.81	%	3.10	%
$	8.30	14.74	%	$	2,475	1.70	%	(0.69	)%	1.90	%	8.30	%
$	7.28	(18.48	)%	$	1,302	1.67	%	(0.94	)%	1.87	%	5.75	%
$	8.93	(10.70	)%	$	754	1.93	%	(1.05	)%	2.13	%	10.10	%

See accompanying notes to the financial statements.

85

BB&T Funds

Financial Highlights, Class C Shares

Selected data for a share of beneficial interest outstanding throughout the periods indicated.

			Investment Activities						Dividends
	Net Asset Value, Beginning of Period		Net investment income (loss)		Net realized/ unrealized gains (losses) on investments and foreign currency transactions		Total from Investment Activities		Net investment income		Net realized gains on investments and foreign currency transactions		Total Dividends
Large Cap Fund
For the Six Months Ended March 31, 2006 (Unaudited)	$	19.28	0.09		1.21		1.30		(0.08	)	(1.44	)	(1.52	)
Year Ended September 30, 2005	$	17.09	0.14		2.19		2.33		(0.14	)	—		(0.14	)
Year Ended September 30, 2004	$	14.73	0.09		2.37		2.46		(0.10	)	—		(0.10	)
Year Ended September 30, 2003	$	12.74	0.13		1.99		2.12		(0.13	)	—		(0.13	)
Year Ended September 30, 2002	$	16.67	0.08		(3.45	)	(3.37	)	(0.08	)	(0.48	)	(0.56	)
February 1, 2001 to September 30, 2001 (a)	$	18.15	0.06		(1.47	)	(1.41	)	(0.07	)	—		(0.07	)
Large Cap Growth Fund
For the Six Months Ended March 31, 2006 (Unaudited)	$	8.47	(0.02	)(b)	0.28		0.26		—		—		—
Year Ended September 30, 2005	$	7.81	(0.04	)(b)	0.73		0.69		(0.03	)	—		(0.03	)
Year Ended September 30, 2004	$	7.37	(0.12	)	0.56		0.44		—		—		—
Year Ended September 30, 2003	$	6.37	(0.08	)(b)	1.08		1.00		—		—		—
Year Ended September 30, 2002	$	7.94	(0.10	)(b)	(1.47	)	(1.57	)	—		—		—
February 1, 2001 to September 30, 2001 (a)	$	11.75	(0.06	)	(3.75	)	(3.81	)	—		—		—
Mid Cap Value Fund
For the Six Months Ended March 31, 2006 (Unaudited)	$	13.16	(0.02	)	1.23		1.21		—		(1.45	)	(1.45	)
Year Ended September 30, 2005	$	15.30	—	(b)(d)	3.02		3.02		(0.07	)	(5.09	)	(5.16	)
Year Ended September 30, 2004	$	12.92	0.07	(b)	2.41		2.48		(0.10	)	—		(0.10	)
Year Ended September 30, 2003	$	10.90	0.07	(b)	2.04		2.11		(0.09	)	—		(0.09	)
Year Ended September 30, 2002	$	13.11	0.08		(1.04	)	(0.96	)	(0.10	)	(1.15	)	(1.25	)
July 25, 2001 to September 30, 2001 (a)	$	14.14	0.03		(1.03	)	(1.00	)	(0.03	)	—		(0.03	)
Mid Cap Growth Fund
For the Six Months Ended March 31, 2006 (Unaudited)	$	13.47	(0.03	)(b)	1.53		1.50		—		(1.42	)	(1.42	)
Year Ended September 30, 2005	$	10.70	(0.17	)(b)	3.08		2.91		—		(0.14	)	(0.14	)
Year Ended September 30, 2004	$	9.69	(0.16	)	1.17		1.01		—		—		—
Year Ended September 30, 2003	$	8.00	(0.15	)	1.84		1.69		—		—		—
Year Ended September 30, 2002	$	9.79	(0.15	)(b)	(1.01	)	(1.16	)	—		(0.63	)	(0.63	)
July 25, 2001 to September 30, 2001 (a)	$	11.20	(0.01	)	(1.40	)	(1.41	)	—		—		—
Small Cap Fund
For the Six Months Ended March 31, 2006 (Unaudited)	$	16.10	(0.03	)	1.64		1.61		(0.01	)	(2.30	)	(2.31	)
Year Ended September 30, 2005	$	14.06	(0.02	)(b)	2.60		2.58		(0.12	)	(0.42	)	(0.54	)
Year Ended September 30, 2004	$	11.40	(0.12	)(b)	2.90		2.78		—		(0.12	)	(0.12	)
May 19, 2003 to September 30, 2003 (a)	$	10.00	(0.05	)(b)	1.45		1.40		—		—		—
International Equity Fund
For the Six Months Ended March 31, 2006 (Unaudited)	$	9.07	(0.02	)	1.11		1.09		—		—		—
Year Ended September 30, 2005	$	7.74	0.06	(b)	1.36		1.42		(0.09	)	—		(0.09	)
Year Ended September 30, 2004	$	6.58	—	(b)(d)	1.20		1.20		(0.04	)	—		(0.04	)
Year Ended September 30, 2003	$	6.07	(0.07	)(b)	0.60		0.53		(0.02	)	—		(0.02	)
Year Ended September 30, 2002	$	7.20	(0.07	)	(1.06	)	(1.13	)	—		—		—
February 1, 2001 to September 30, 2001 (a)	$	10.03	(0.02	)	(2.81	)	(2.83	)	—		—		—
Special Opportunities Equity Fund
For the Six Months Ended March 31, 2006 (Unaudited)	$	15.30	(0.04	)	0.48		0.44		—		(0.79	)	(0.79	)
Year Ended September 30, 2005	$	12.95	(0.13	)	2.60		2.47		—		(0.12	)	(0.12	)
Year Ended September 30, 2004	$	10.50	(0.11	)	2.64		2.53		—		(0.08	)	(0.08	)
June 2, 2003 to September 30, 2003 (a)	$	10.00	(0.02	)	0.52		0.50		—		—		—
Equity Income Fund
For the Six Months Ended March 31, 2006 (Unaudited)	$	12.07	0.11		0.75		0.86		(0.10	)	(0.27	)	(0.37	)
Year Ended September 30, 2005	$	10.34	0.17		1.76		1.93		(0.18	)	(0.02	)	(0.20	)
June 30, 2004 to September 30, 2004 (a)	$	10.00	0.03	(b)	0.34		0.37		(0.03	)	—		(0.03	)
Intermediate U.S. Government Fund
For the Six Months Ended March 31, 2006 (Unaudited)	$	9.98	0.18		(0.24	)	(0.06	)	(0.17	)	—		(0.17	)
Year Ended September 30, 2005	$	10.20	0.27	(b)	(0.13	)	0.14		(0.31	)	(0.05	)	(0.36	)
Year Ended September 30, 2004	$	10.53	0.17		(0.12	)	0.05		(0.25	)	(0.13	)	(0.38	)
Year Ended September 30, 2003	$	10.74	0.26		(0.07	)	0.19		(0.31	)	(0.09	)	(0.40	)
Year Ended September 30, 2002	$	10.35	0.38	(c)	0.43	(c)	0.81		(0.42	)	—		(0.42	)
February 1, 2001 to September 30, 2001 (a)	$	10.10	0.35		0.25		0.60		(0.35	)	—		(0.35	)

* During the period certain fees were reduced. If such reductions had not occurred, the ratios would have been as indicated.

** Portfolio turnover rate is calculated on the basis of the Fund as a whole without distinguishing between classes of shares issued.

(a) Period from commencement of operations.

(b) Per share net investment income (loss) has been calculated using the average daily shares method.

(c) Without the adoption of the change in amortization method as required by the November 2000 revised version of the AICPA Audit and Accounting Guide for Investment Companies, the amounts for net investment income, net realized/unrealized gains (losses), and the net investment income ratio would have been: $0.40, $0.41, and 3.99%, respectively.

(d) Amount is less than $0.005.

(e) Not annualized for periods less than one year.

(f) Annualized for periods less than one year.

See accompanying notes to the financial statements.

86

				Ratios/Supplementary Data
Net Asset Value, End of Period		Total Return (excludes sales charge) (e)		Net Assets, End of Period (000)		Ratio of net expenses to average net assets (f)		Ratio of net investment income (loss) to average net assets (f)		Ratio of expenses to average net assets* (f)		Portfolio turnover rate**
$	19.06	7.11	%	$	153	1.88	%	1.02	%	1.94	%	12.55	%
$	19.28	13.77	%	$	176	1.88	%	0.80	%	1.98	%	19.50	%
$	17.09	16.72	%	$	157	1.95	%	0.57	%	2.07	%	16.40	%
$	14.73	16.72	%	$	122	1.92	%	0.90	%	2.06	%	18.89	%
$	12.74	(21.10	)%	$	52	1.94	%	0.41	%	2.08	%	23.02	%
$	16.67	(7.80	)%	$	13	2.03	%	0.36	%	2.16	%	24.20	%
$	8.73	2.95	%	$	19	1.87	%	(0.58	)%	1.93	%	78.17	%
$	8.47	8.90	%	$	18	1.89	%	(0.43	)%	1.98	%	62.78	%
$	7.81	5.97	%	$	25	1.96	%	(1.08	)%	2.08	%	127.47	%
$	7.37	15.70	%	$	31	1.93	%	(1.10	)%	2.06	%	91.73	%
$	6.37	(19.77	)%	$	37	1.98	%	(1.23	)%	2.12	%	100.46	%
$	7.94	(32.43	)%	$	8	2.04	%	(1.34	)%	2.18	%	96.41	%
$	12.92	9.74	%	$	719	1.89	%	(0.36	)%	1.94	%	25.52	%
$	13.16	19.97	%	$	351	1.90	%	0.01	%	2.00	%	126.99	%
$	15.30	19.20	%	$	523	1.98	%	0.45	%	2.10	%	19.17	%
$	12.92	19.40	%	$	484	1.95	%	0.61	%	2.10	%	18.28	%
$	10.90	(8.86	)%	$	300	1.91	%	0.65	%	2.12	%	18.20	%
$	13.11	(7.07	)%	$	1	2.15	%	1.08	%	2.52	%	27.04	%
$	13.55	11.99	%	$	47	1.87	%	(0.44	)%	1.93	%	51.24	%
$	13.47	27.42	%	$	77	1.91	%	(1.46	)%	2.00	%	92.74	%
$	10.70	10.42	%	$	208	2.00	%	(1.65	)%	2.11	%	138.61	%
$	9.69	21.13	%	$	164	1.95	%	(1.71	)%	2.11	%	125.97	%
$	8.00	(13.20	)%	$	143	1.81	%	(1.58	)%	2.13	%	117.06	%
$	9.79	(13.13	)%	$	1	2.19	%	(1.91	)%	2.49	%	90.11	%
$	15.40	11.16	%	$	24	1.99	%	(0.32	)%	2.19	%	24.47	%
$	16.10	18.71	%	$	4	2.04	%	(0.12	)%	2.25	%	8.39	%
$	14.06	24.56	%	$	1	2.25	%	(0.89	)%	2.44	%	11.25	%
$	11.40	14.00	%	$	1	2.64	%	(1.15	)%	2.64	%	48.84	%
$	10.16	12.02	%	$	165	2.16	%	(0.38	)%	2.26	%	23.63	%
$	9.07	18.38	%	$	92	2.23	%	0.70	%	2.34	%	44.96	%
$	7.74	18.30	%	$	2	2.32	%	(0.04	)%	2.42	%	50.68	%
$	6.58	8.80	%	$	2	2.40	%	(1.06	)%	2.40	%	199.78	%
$	6.07	(15.69	)%	$	7	2.43	%	(0.98	)%	2.43	%	95.86	%
$	7.20	(28.22	)%	$	6	2.40	%	(1.35	)%	2.40	%	144.35	%
$	14.95	3.04	%	$	32,336	2.03	%	(0.80	)%	2.03	%	28.65	%
$	15.30	19.16	%	$	30,299	2.06	%	(1.17	)%	2.08	%	30.38	%
$	12.95	24.17	%	$	15,611	2.15	%	(1.51	)%	2.30	%	32.06	%
$	10.50	5.00	%	$	4,052	1.80	%	(1.17	)%	2.52	%	13.24	%
$	12.56	7.21	%	$	11,650	1.94	%	1.88	%	1.94	%	25.66	%
$	12.07	18.74	%	$	8,683	1.87	%	1.77	%	2.08	%	39.65	%
$	10.34	3.66	%	$	1,816	2.29	%	1.14	%	2.65	%	1.65	%
$	9.75	(0.63	)%	$	223	1.69	%	3.44	%	1.79	%	69.65	%
$	9.98	1.33	%	$	274	1.71	%	2.66	%	1.84	%	107.04	%
$	10.20	0.55	%	$	607	1.80	%	2.15	%	1.92	%	98.35	%
$	10.53	1.77	%	$	836	1.82	%	2.57	%	1.92	%	209.07	%
$	10.74	8.05	%	$	1,313	1.79	%	3.81	%(c)	1.89	%	79.36	%
$	10.35	6.01	%	$	40	1.98	%	4.26	%	2.05	%	84.76	%

See accompanying notes to the financial statements.

87

BB&T Funds

Financial Highlights, Class C Shares

Selected data for a share of beneficial interest outstanding throughout the periods indicated.

			Investment Activities						Dividends
	Net Asset Value, Beginning of Period		Net investment income (loss)		Net realized/ unrealized gains (losses) on investments		Total from Investment Activities		Net investment income		Net realized gains on investments		Total Dividends
Total Return Bond Fund
For the Six Months Ended March 31, 2006 (Unaudited)	$	10.32	0.16		(0.23	)	(0.07	)	(0.17	)	(0.05	)	(0.22	)
Year Ended September 30, 2005	$	10.59	0.30	(b)	(0.18	)	0.12		(0.36	)	(0.03	)	(0.39	)
Year Ended September 30, 2004	$	10.72	0.33		(0.08	)	0.25		(0.38	)	—		(0.38	)
Year Ended September 30, 2003	$	10.33	0.39		0.41		0.80		(0.41	)	—		(0.41	)
Year Ended September 30, 2002	$	10.56	0.43	(b)(d)	—	(d)	0.43		(0.49	)	(0.17	)	(0.66	)
February 1, 2001 to September 30, 2001 (a)	$	10.39	0.35		0.17		0.52		(0.35	)	—		(0.35	)
Prime Money Market Fund
For the Six Months Ended March 31, 2006 (Unaudited)	$	1.00	0.01		—	(c)	0.01		(0.01	)	—		(0.01	)
Year Ended September 30, 2005	$	1.00	0.01		—	(c)	0.01		(0.01	)	—		(0.01	)
Year Ended September 30, 2004	$	1.00	—	(c)	—	(c)	—	(c)	—	(c)	—		—	(c)
Year Ended September 30, 2003	$	1.00	—	(c)	—		—	(c)	—	(c)	—		—	(c)
January 30, 2002 to September 30, 2002 (a)	$	1.00	0.01		—		0.01		(0.01	)	—		(0.01	)
U.S. Treasury Money Market Fund
For the Six Months Ended March 31, 2006 (Unaudited)	$	1.00	0.01		—		0.01		(0.01	)	—		(0.01	)
Year Ended September 30, 2005	$	1.00	0.01		—		0.01		(0.01	)	—		(0.01	)
Year Ended September 30, 2004	$	1.00	—	(c)	—		—	(c)	—	(c)	—		—	(c)
Year Ended September 30, 2003	$	1.00	—	(c)	—		—	(c)	—	(c)	—		—	(c)
January 30, 2002 to September 30, 2002 (a)	$	1.00	—	(c)	—		—	(c)	—	(c)	—		—	(c)
Capital Manager Conservative Growth Fund
For the Six Months Ended March 31, 2006 (Unaudited)	$	9.73	0.12		0.13		0.25		(0.12	)	—		(0.12	)
Year Ended September 30, 2005	$	9.27	0.16		0.45		0.61		(0.15	)	—		(0.15	)
Year Ended September 30, 2004	$	8.82	0.09	(b)	0.44		0.53		(0.08	)	—		(0.08	)
Year Ended September 30, 2003	$	8.26	0.09		0.61		0.70		(0.10	)	(0.04	)	(0.14	)
Year Ended September 30, 2002	$	9.10	0.17		(0.69	)	(0.52	)	(0.14	)	(0.18	)	(0.32	)
February 1, 2001 to September 30, 2001 (a)	$	10.06	0.10		(0.93	)	(0.83	)	(0.13	)	—		(0.13	)
Capital Manager Moderate Growth Fund
For the Six Months Ended March 31, 2006 (Unaudited)	$	9.69	0.09		0.33		0.42		(0.10	)	—		(0.10	)
Year Ended September 30, 2005	$	8.91	0.09	(b)	0.77		0.86		(0.08	)	—		(0.08	)
Year Ended September 30, 2004	$	8.18	0.01	(b)	0.73		0.74		(0.01	)	—		(0.01	)
Year Ended September 30, 2003	$	7.42	0.03		0.82		0.85		(0.08	)	(0.01	)	(0.09	)
Year Ended September 30, 2002	$	8.77	0.04		(0.97	)	(0.93	)	(0.05	)	(0.37	)	(0.42	)
February 1, 2001 to September 30, 2001 (a)	$	10.23	0.05		(1.45	)	(1.40	)	(0.06	)	—		(0.06	)
Capital Manager Growth Fund
For the Six Months Ended March 31, 2006 (Unaudited)	$	9.52	0.09		0.45		0.54		(0.10	)	—		(0.10	)
Year Ended September 30, 2005	$	8.56	0.04	(b)	0.95		0.99		(0.03	)	—		(0.03	)
Year Ended September 30, 2004	$	7.71	(0.02	)(b)	0.87		0.85		—		—		—
Year Ended September 30, 2003	$	6.80	(0.01	)(b)	0.93		0.92		(0.01	)	—		(0.01	)
Year Ended September 30, 2002	$	8.41	(0.02	)	(1.19	)	(1.21	)	—		(0.40	)	(0.40	)
February 1, 2001 to September 30, 2001 (a)	$	10.41	(0.01	)	(1.98	)	(1.99	)	(0.01	)	—		(0.01	)
Capital Manager Equity Fund
For the Six Months Ended March 31, 2006 (Unaudited)	$	10.64	0.08		0.67		0.75		(0.08	)	(0.19	)	(0.27	)
Year Ended September 30, 2005	$	9.33	(0.01	)(b)	1.32		1.31		—	(c)	—		—	(c)
Year Ended September 30, 2004	$	8.28	(0.05	)(b)	1.10		1.05		—		—		—
Year Ended September 30, 2003	$	7.26	(0.05	)(b)	1.12		1.07		—	(c)	(0.05	)	(0.05	)
Year Ended September 30, 2002	$	8.92	(0.12	)	(1.54	)	(1.66	)	—		—		—
March 19, 2001 to September 30, 2001 (a)	$	10.00	(0.06	)	(1.02	)	(1.08	)	—		—		—

* During the period certain fees were reduced. If such reductions had not occurred, the ratios would have been as indicated.

** Portfolio turnover rate is calculated on the basis of the Fund as a whole without distinguishing between classes of shares issued.

(a) Period from commencement of operations.

(b) Per share net investment income (loss) has been calculated using the average daily shares method.

(c) Amount is less than $0.005

(d) Without the adoption of the change in amortization method as required by the November 2000 revised version of the AICPA Audit and Accounting Guide for Investment Companies, the amounts for net investment income, net realized/unrealized gains (losses), and the net investment income ratio would have been: $0.44, $(0.01), and 4.40%, respectively.

(e) Not annualized for periods less than one year.

(f) Annualized for periods less than one year.

See accompanying notes to the financial statements.

88

				Ratios/Supplementary Data
Net Asset Value, End of Period		Total Return (excludes sales charge) (e)		Net Assets, End of Period (000)		Ratio of net expenses to average net assets (f)		Ratio of net investment income (loss) to average net assets (f)		Ratio of expenses to average net assets* (f)		Portfolio turnover rate**
$	10.03	(0.71	)%	$	205	1.68	%	3.19	%	1.79	%	102.82	%
$	10.32	1.21	%	$	218	1.71	%	2.88	%	1.84	%	173.74	%
$	10.59	2.44	%	$	257	1.82	%	3.09	%	1.94	%	31.95	%
$	10.72	7.86	%	$	282	1.83	%	3.61	%	1.94	%	43.98	%
$	10.33	4.37	%	$	318	1.89	%	4.28	%(d)	2.03	%	69.15	%
$	10.56	5.07	%	$	11	1.71	%	4.94	%	1.85	%	142.35	%
$	1.00	1.43	%	$	336	1.48	%	2.85	%	1.59	%
$	1.00	1.32	%	$	326	1.49	%	1.29	%	1.64	%	—
$	1.00	0.06	%	$	453	1.20	%	0.06	%	1.70	%	—
$	1.00	0.15	%	$	555	1.30	%	0.14	%	1.69	%	—
$	1.00	0.28	%	$	314	1.60	%	0.40	%	1.65	%	—
$	1.00	1.31	%	$	5	1.47	%	2.39	%	1.59	%
$	1.00	1.07	%	$	38	1.50	%	1.40	%	1.66	%	—
$	1.00	0.05	%	$	5	1.02	%	0.05	%	1.71	%	—
$	1.00	0.16	%	$	8	1.12	%	0.17	%	1.70	%	—
$	1.00	0.18	%	$	10	1.60	%	0.27	%	1.64	%	—
$	9.86	2.62	%	$	130	1.09	%	2.44	%	1.45	%	2.74	%
$	9.73	6.58	%	$	155	1.20	%	1.63	%	1.52	%	52.50	%
$	9.27	6.06	%	$	180	1.44	%	0.93	%	1.64	%	2.47	%
$	8.82	8.50	%	$	148	1.53	%	1.05	%	1.73	%	33.03	%
$	8.26	(5.98	)%	$	62	1.52	%	1.45	%	1.72	%	6.29	%
$	9.10	(8.30	)%	$	2	1.71	%	1.58	%	1.73	%	35.75	%
$	10.01	4.38	%	$	129	1.11	%	2.05	%	1.47	%	5.89	%
$	9.69	9.62	%	$	122	1.25	%	0.95	%	1.56	%	37.83	%
$	8.91	9.08	%	$	178	1.49	%	0.17	%	1.69	%	0.17	%
$	8.18	11.39	%	$	182	1.51	%	0.40	%	1.71	%	21.46	%
$	7.42	(11.40	)%	$	307	1.58	%	0.53	%	1.78	%	14.56	%
$	8.77	13.75	%	$	178	1.55	%	0.74	%	1.75	%	24.24	%
$	9.96	5.66	%	$	62	1.12	%	1.58	%	1.48	%	5.59	%
$	9.52	11.61	%	$	37	1.26	%	0.43	%	1.59	%	26.22	%
$	8.56	11.02	%	$	63	1.50	%	(0.23	)%	1.73	%	0.19	%
$	7.71	13.48	%	$	52	1.54	%	(0.14	)%	1.74	%	17.80	%
$	6.80	(15.43	)%	$	12	1.61	%	(0.34	)%	1.81	%	8.38	%
$	8.41	(19.16	)%	$	8	1.68	%	(0.30	)%	1.86	%	27.33	%
$	11.12	7.14	%	$	20	1.11	%	1.39	%	1.48	%	1.05	%
$	10.64	14.15	%	$	19	1.27	%	(0.09	)%	1.63	%	2.14	%
$	9.33	12.68	%	$	85	1.52	%	(0.54	)%	1.81	%	3.10	%
$	8.28	14.78	%	$	28	1.73	%	(0.66	)%	1.92	%	8.30	%
$	7.26	(18.61	)%	$	1	1.94	%	(1.31	)%	1.94	%	5.75	%
$	8.92	(10.80	)%	$	1	1.87	%	(1.12	)%	1.87	%	10.10	%

See accompanying notes to the financial statements.

89

BB&T Funds

Financial Highlights, Institutional Shares

Selected data for a share of beneficial interest outstanding throughout the periods indicated.

			Investment Activities						Dividends
	Net Asset Value, Beginning of Period		Net investment income (loss)		Net realized/ unrealized gains (losses) on investments and foreign currency transactions		Total from Investment Activities		Net investment income		Net realized gains on investments and foreign currency transactions		Total Dividends
Large Cap Fund
For the Six Months Ended March 31, 2006 (Unaudited)	$	19.51	0.19		1.24		1.43		(0.18	)	(1.44	)	(1.62	)
Year Ended September 30, 2005	$	17.29	0.34		2.22		2.56		(0.34	)	—		(0.34	)
Year Ended September 30, 2004	$	14.90	0.26		2.39		2.65		(0.26	)	—		(0.26	)
Year Ended September 30, 2003	$	12.87	0.27		2.03		2.30		(0.27	)	—		(0.27	)
Year Ended September 30, 2002	$	16.82	0.22		(3.47	)	(3.25	)	(0.22	)	(0.48	)	(0.70	)
Year Ended September 30, 2001	$	18.60	0.26		(0.89	)	(0.63	)	(0.26	)	(0.89	)	(1.15	)
Large Cap Growth Fund
For the Six Months Ended March 31, 2006 (Unaudited)	$	9.12	0.02	(c)	0.30		0.32		(0.02	)	—		(0.02	)
Year Ended September 30, 2005	$	8.35	0.06	(c)	0.77		0.83		(0.06	)	—		(0.06	)
Year Ended September 30, 2004	$	7.79	(0.01	)	0.57		0.56		—		—		—
Year Ended September 30, 2003	$	6.67	(0.01	)(c)	1.13		1.12		—		—		—
Year Ended September 30, 2002	$	8.23	(0.03	)	(1.53	)	(1.56	)	—		—		—
Year Ended September 30, 2001	$	14.84	(0.03	)	(5.60	)	(5.63	)	—		(0.98	)	(0.98	)
Mid Cap Value Fund
For the Six Months Ended March 31, 2006 (Unaudited)	$	13.38	0.04		1.25		1.29		(0.03	)	(1.45	)	(1.48	)
Year Ended September 30, 2005	$	15.41	0.17	(c)	3.05		3.22		(0.16	)	(5.09	)	(5.25	)
Year Ended September 30, 2004	$	12.98	0.22	(c)	2.42		2.64		(0.21	)	—		(0.21	)
Year Ended September 30, 2003	$	10.93	0.19	(c)	2.04		2.23		(0.18	)	—		(0.18	)
Year Ended September 30, 2002	$	13.12	0.20		(1.04	)	(0.84	)	(0.20	)	(1.15	)	(1.35	)
February 1, 2001 to September 30, 2001 (b)	$	14.26	0.15		(1.13	)	(0.98	)	(0.16	)	—		(0.16	)
Year Ended January 31, 2001	$	14.10	0.25		0.95		1.20		(0.25	)	(0.79	)	(1.04	)
Mid Cap Growth Fund
For the Six Months Ended March 31, 2006 (Unaudited)	$	14.51	0.04	(c)	1.67		1.71		(0.04	)	(1.42	)	(1.46	)
Year Ended September 30, 2005	$	11.40	(0.06	)(c)	3.31		3.25		—		(0.14	)	(0.14	)
Year Ended September 30, 2004	$	10.22	(0.08	)	1.26		1.18		—		—		—
Year Ended September 30, 2003	$	8.36	(0.06	)	1.92		1.86		—		—		—
Year Ended September 30, 2002	$	10.10	(0.06	)	(1.05	)	(1.11	)	—		(0.63	)	(0.63	)
February 1, 2001 to September 30, 2001 (b)	$	14.84	(0.02	)	(4.72	)	(4.74	)	—		—		—
Year Ended January 31, 2001	$	20.78	(0.04	)	(2.08	)	(2.12	)	—		(3.82	)	(3.82	)
Small Cap Fund
For the Six Months Ended March 31, 2006 (Unaudited)	$	16.44	0.04		1.69		1.73		(0.03	)	(2.30	)	(2.33	)
Year Ended September 30, 2005	$	14.23	0.16	(c)	2.62		2.78		(0.15	)	(0.42	)	(0.57	)
Year Ended September 30, 2004	$	11.44	0.02	(c)	2.91		2.93		(0.02	)	(0.12	)	(0.14	)
May 19, 2003 to September 30, 2003 (a)	$	10.00	(0.01	)(c)	1.45		1.44		—	(d)	—		—	(d)
International Equity Fund
For the Six Months Ended March 31, 2006 (Unaudited)	$	9.72	0.03		1.18		1.21		(0.01	)	—		(0.01	)
Year Ended September 30, 2005	$	8.24	0.12	(c)	1.49		1.61		(0.13	)	—		(0.13	)
Year Ended September 30, 2004	$	6.98	0.10	(c)	1.26		1.36		(0.10	)	—		(0.10	)
Year Ended September 30, 2003	$	6.41	0.05	(c)	0.57		0.62		(0.05	)	—		(0.05	)
Year Ended September 30, 2002	$	7.53	—		(1.12	)	(1.12	)	—	(d)	—		—	(d)
Year Ended September 30, 2001	$	12.60	(0.05	)	(3.00	)	(3.05	)	—		(2.02	)	(2.02	)
Special Opportunities Equity Fund
For the Six Months Ended March 31, 2006 (Unaudited)	$	15.65	0.02		0.51		0.53		—		(0.79	)	(0.79	)
Year Ended September 30, 2005	$	13.12	(0.03	)	2.68		2.65		—		(0.12	)	(0.12	)
Year Ended September 30, 2004	$	10.53	(0.05	)	2.72		2.67		—		(0.08	)	(0.08	)
June 2, 2003 to September 30, 2003 (a)	$	10.00	—	(d)	0.53		0.53		—	(d)	—		—	(d)
Equity Income Fund
For the Six Months Ended March 31, 2006 (Unaudited)	$	12.10	0.18		0.75		0.93		(0.16	)	(0.27	)	(0.43	)
Year Ended September 30, 2005	$	10.35	0.28		1.76		2.04		(0.27	)	(0.02	)	(0.29	)
June 30, 2004 to September 30, 2004 (a)	$	10.00	0.05	(c)	0.34		0.39		(0.04	)	—		(0.04	)

* During the period certain fees were reduced. If such reductions had not occurred, the ratios would have been as indicated.

** Portfolio turnover rate is calculated on the basis of the Fund as a whole without distinguishing between classes of shares issued.

(a) Period from commencement of operations.

(b) For the period from February 1, 2001 to September 30, 2001. Upon reorganizing as Funds of the BB&T Funds, the Mid Cap Value Fund and Mid Cap Growth Fund changed their fiscal year end from January 31 to September 30, 2001. The Financial Highlights for the periods prior to February 1, 2001 represent the OVB Equity Income Portfolio and OVB Capital Appreciation Portfolio, respectively.

(c) Per share net investment income (loss) has been calculated using the average daily shares method.

(d) Amount is less than $0.005.

(e) Not annualized for periods less than one year.

(f) Annualized for periods less than one year.

See accompanying notes to the financial statements.

90

				Ratios/Supplementary Data
Net Asset Value, End of Period		Total Return (e)		Net Assets, End of Period (000)		Ratio of net expenses to average net assets (f)		Ratio of net investment income (loss) to average net assets (f)		Ratio of expenses to average net assets* (f)		Portfolio turnover rate**
$	19.32	7.72	%	$	648,038	0.88	%	2.03	%	0.94	%	12.55	%
$	19.51	14.92	%	$	605,493	0.89	%	1.82	%	0.99	%	19.50	%
$	17.29	17.86	%	$	620,186	0.95	%	1.58	%	1.06	%	16.40	%
$	14.90	17.98	%	$	475,289	0.92	%	1.90	%	1.06	%	18.89	%
$	12.87	(20.33	)%	$	319,971	0.98	%	1.37	%	1.12	%	23.02	%
$	16.82	(3.53	)%	$	360,847	0.99	%	1.48	%	1.13	%	24.20	%
$	9.42	3.50	%	$	363,127	0.88	%	0.44	%	0.94	%	78.17	%
$	9.12	9.92	%	$	336,103	0.89	%	0.63	%	0.99	%	62.78	%
$	8.35	7.19	%	$	346,061	0.97	%	(0.08	)%	1.08	%	127.47	%
$	7.79	16.79	%	$	272,961	0.93	%	(0.11	)%	1.07	%	91.73	%
$	6.67	(18.96	)%	$	160,933	1.02	%	(0.30	)%	1.16	%	100.46	%
$	8.23	(40.24	)%	$	151,601	1.05	%	(0.25	)%	1.19	%	96.41	%
$	13.19	10.32	%	$	203,483	0.88	%	0.63	%	0.94	%	25.52	%
$	13.38	21.14	%	$	172,295	0.89	%	1.02	%	0.99	%	126.99	%
$	15.41	20.44	%	$	182,791	0.98	%	1.47	%	1.10	%	19.17	%
$	12.98	20.60	%	$	142,280	0.95	%	1.57	%	1.10	%	18.28	%
$	10.93	(8.01	)%	$	85,013	0.90	%	1.54	%	1.13	%	18.20	%
$	13.12	(6.93	)%	$	74,070	0.94	%	1.75	%	1.12	%	27.04	%
$	14.26	9.03	%	$	64,423	0.96	%	1.79	%	1.11	%	59.00	%
$	14.76	12.59	%	$	148,968	0.88	%	0.56	%	0.94	%	51.24	%
$	14.51	28.73	%	$	126,785	0.91	%	(0.46	)%	1.01	%	92.74	%
$	11.40	11.55	%	$	118,012	1.00	%	(0.65	)%	1.11	%	138.61	%
$	10.22	22.25	%	$	100,226	0.95	%	(0.72	)%	1.12	%	125.97	%
$	8.36	(12.26	)%	$	69,975	0.89	%	(0.62	)%	1.17	%	117.06	%
$	10.10	(31.94	)%	$	90,424	1.02	%	(0.32	)%	1.25	%	90.11	%
$	14.84	(10.61	)%	$	129,433	1.02	%	(0.16	)%	1.23	%	63.00	%
$	15.84	11.68	%	$	113,617	1.01	%	0.58	%	1.21	%	24.47	%
$	16.44	19.99	%	$	61,046	1.05	%	1.07	%	1.28	%	8.39	%
$	14.23	25.78	%	$	66,802	1.26	%	0.15	%	1.42	%	11.25	%
$	11.44	14.43	%	$	43,462	1.69	%	(0.17	)%	1.69	%	48.84	%
$	10.92	12.49	%	$	256,267	1.16	%	0.50	%	1.26	%	23.63	%
$	9.72	19.61	%	$	229,406	1.20	%	1.34	%	1.33	%	44.96	%
$	8.24	19.48	%	$	233,275	1.32	%	1.30	%	1.42	%	50.68	%
$	6.98	9.72	%	$	187,315	1.40	%	0.78	%	1.41	%	199.78	%
$	6.41	(14.85	)%	$	123,330	1.43	%	0.03	%	1.43	%	95.86	%
$	7.53	(28.33	)%	$	115,405	1.48	%	(0.14	)%	1.48	%	144.35	%
$	15.39	3.56	%	$	60,515	1.03	%	0.20	%	1.03	%	28.65	%
$	15.65	20.29	%	$	60,823	1.06	%	(0.18	)%	1.08	%	30.38	%
$	13.12	25.44	%	$	39,816	1.12	%	(0.49	)%	1.32	%	32.06	%
$	10.53	5.31	%	$	26,360	0.82	%	(0.11	)%	1.64	%	13.24	%
$	12.60	7.76	%	$	32,390	0.94	%	2.84	%	0.94	%	25.66	%
$	12.10	19.88	%	$	30,588	0.90	%	2.62	%	1.12	%	39.65	%
$	10.35	3.94	%	$	21,128	1.29	%	1.91	%	1.63	%	1.65	%

See accompanying notes to the financial statements.

91

BB&T Funds

Financial Highlights, Institutional Shares

Selected data for a share of beneficial interest outstanding throughout the periods indicated.

			Investment Activities						Dividends
	Net Asset Value, Beginning of Period		Net investment income (loss)		Net realized/ unrealized gains (losses) on investments		Total from Investment Activities		Net investment income		Net realized gains on investments		Total Dividends
Short U.S. Government Fund
For the Six Months Ended March 31, 2006 (Unaudited)	$	9.51	0.14		(0.06	)	0.08		(0.17	)	—		(0.17	)
Year Ended September 30, 2005	$	9.71	0.25		(0.13	)	0.12		(0.32	)	—		(0.32	)
Year Ended September 30, 2004	$	9.90	0.20		(0.11	)	0.09		(0.28	)	—		(0.28	)
Year Ended September 30, 2003	$	10.09	0.29		(0.11	)	0.18		(0.37	)	—		(0.37	)
Year Ended September 30, 2002	$	10.05	0.45	(c)	0.06	(c)	0.51		(0.47	)	—		(0.47	)
Year Ended September 30, 2001	$	9.64	0.53		0.41		0.94		(0.53	)	—		(0.53	)
Intermediate U.S. Government Fund
For the Six Months Ended March 31, 2006 (Unaudited)	$	10.03	0.22		(0.24	)	(0.02	)	(0.22	)	—		(0.22	)
Year Ended September 30, 2005	$	10.25	0.37	(b)	(0.13	)	0.24		(0.41	)	(0.05	)	(0.46	)
Year Ended September 30, 2004	$	10.58	0.34		(0.18	)	0.16		(0.36	)	(0.13	)	(0.49	)
Year Ended September 30, 2003	$	10.78	0.37		(0.07	)	0.30		(0.41	)	(0.09	)	(0.50	)
Year Ended September 30, 2002	$	10.39	0.49	(d)	0.42	(d)	0.91		(0.52	)	—		(0.52	)
Year Ended September 30, 2001	$	9.73	0.54		0.66		1.20		(0.54	)	—		(0.54	)
Total Return Bond Fund
For the Six Months Ended March 31, 2006 (Unaudited)	$	10.32	0.21		(0.23	)	(0.02	)	(0.22	)	(0.05	)	(0.27	)
Year Ended September 30, 2005	$	10.59	0.39	(b)	(0.16	)	0.23		(0.47	)	(0.03	)	(0.50	)
Year Ended September 30, 2004	$	10.72	0.44		(0.08	)	0.36		(0.49	)	—		(0.49	)
Year Ended September 30, 2003	$	10.33	0.49		0.41		0.90		(0.51	)	—		(0.51	)
Year Ended September 30, 2002	$	10.56	0.55	(e)	(0.04	)(e)	0.51		(0.57	)	(0.17	)	(0.74	)
Year Ended September 30, 2001	$	9.98	0.62		0.58		1.20		(0.62	)	—		(0.62	)
Kentucky Intermediate Tax-Free Fund
For the Six Months Ended March 31, 2006 (Unaudited)	$	10.04	0.16		(0.10	)	0.06		(0.16	)	—		(0.16	)
Year Ended September 30, 2005	$	10.20	0.29	(b)	(0.16	)	0.13		(0.29	)	—		(0.29	)
Year Ended September 30, 2004	$	10.22	0.28	(b)	(0.02	)	0.26		(0.28	)	—		(0.28	)
February 24, 2003 to September 30, 2003 (a)	$	10.00	0.16	(b)	0.20		0.36		(0.14	)	—		(0.14	)
Maryland Intermediate Tax-Free Fund
For the Six Months Ended March 31, 2006 (Unaudited)	$	10.04	0.16		(0.12	)	0.04		(0.16	)	—		(0.16	)
Year Ended September 30, 2005	$	10.16	0.28	(b)	(0.12	)	0.16		(0.28	)	—		(0.28	)
Year Ended September 30, 2004	$	10.16	0.25		—	(f)	0.25		(0.25	)	—		(0.25	)
February 24, 2003 to September 30, 2003 (a)	$	10.00	0.13		0.16		0.29		(0.13	)	—		(0.13	)
North Carolina Intermediate Tax-Free Fund
For the Six Months Ended March 31, 2006 (Unaudited)	$	10.46	0.20		(0.15	)	0.05		(0.19	)	(0.09	)	(0.28	)
Year Ended September 30, 2005	$	10.66	0.38		(0.19	)	0.19		(0.37	)	(0.02	)	(0.39	)
Year Ended September 30, 2004	$	10.81	0.35		(0.12	)	0.23		(0.34	)	(0.04	)	(0.38	)
Year Ended September 30, 2003	$	10.86	0.35		(0.01	)	0.34		(0.35	)	(0.04	)	(0.39	)
Year Ended September 30, 2002	$	10.54	0.38		0.39		0.77		(0.37	)	(0.08	)	(0.45	)
Year Ended September 30, 2001	$	9.98	0.40		0.56		0.96		(0.40	)	—		(0.40	)
South Carolina Intermediate Tax-Free Fund
For the Six Months Ended March 31, 2006 (Unaudited)	$	10.47	0.18		(0.15	)	0.03		(0.18	)	(0.18	)	(0.36	)
Year Ended September 30, 2005	$	10.74	0.36		(0.19	)	0.17		(0.36	)	(0.08	)	(0.44	)
Year Ended September 30, 2004	$	10.81	0.35		(0.06	)	0.29		(0.35	)	(0.01	)	(0.36	)
Year Ended September 30, 2003	$	10.81	0.35		—	(f)	0.35		(0.35	)	—		(0.35	)
Year Ended September 30, 2002	$	10.39	0.39		0.41		0.80		(0.38	)	—		(0.38	)
Year Ended September 30, 2001	$	9.84	0.40		0.55		0.95		(0.40	)	—		(0.40	)
Virginia Intermediate Tax-Free Fund
For the Six Months Ended March 31, 2006 (Unaudited)	$	11.49	0.21		(0.18	)	0.03		(0.21	)	(0.06	)	(0.27	)
Year Ended September 30, 2005	$	11.74	0.42		(0.23	)	0.19		(0.42	)	(0.02	)	(0.44	)
Year Ended September 30, 2004	$	11.95	0.40		(0.13	)	0.27		(0.40	)	(0.08	)	(0.48	)
Year Ended September 30, 2003	$	11.99	0.39		—	(f)	0.39		(0.39	)	(0.04	)	(0.43	)
Year Ended September 30, 2002	$	11.57	0.43		0.41		0.84		(0.42	)	—		(0.42	)
Year Ended September 30, 2001	$	10.96	0.44		0.61		1.05		(0.44	)	—		(0.44	)

* During the period certain fees were reduced. If such reductions had not occurred, the ratios would have been as indicated.

** Portfolio turnover rate is calculated on the basis of the Fund as a whole without distinguishing between classes of shares issued.

(a) Period from commencement of operations.

(b) Per share net investment income (loss) has been calculated using the average daily shares method.

(c) Without the adoption of the change in amortization method as required by the November 2000 revised version of the AICPA Audit and Accounting Guide for Investment Companies, the amounts for net investment income, net realized/unrealized gains (losses), and the net investment income ratio would have been: $0.49, $0.02, and 4.65%, respectively.

(d) Without the adoption of the change in amortization method as required by the November 2000 revised version of the AICPA Audit and Accounting Guide for Investment Companies, the amounts for net investment income, net realized/unrealized gains (losses), and the net investment income ratio would have been: $0.51, $0.40, and 4.99%, respectively.

(e) Without the adoption of the change in amortization method as required by the November 2000 revised version of the AICPA Audit and Accounting Guide for Investment Companies, the amounts for net investment income, net realized/unrealized gains (losses), and the net investment income ratio would have been: $0.56, $(0.05), and 5.54%, respectively.

(f) Amount is less than $0.005.

(g) Not annualized for periods less than one year.

(h) Annualized for periods less than one year.

See accompanying notes to the financial statements.

92

				Ratios/Supplementary Data
Net Asset Value, End of Period		Total Return (g)		Net Assets, End of Period (000)		Ratio of net expenses to average net assets (h)		Ratio of net investment income (loss) to average net assets (h)		Ratio of expenses to average net assets* (h)		Portfolio turnover rate**
$	9.42	0.81	%	$	129,974	0.64	%	2.89	%	0.79	%	10.30	%
$	9.51	1.21	%	$	155,786	0.66	%	2.64	%	0.84	%	33.67	%
$	9.71	0.96	%	$	195,920	0.74	%	2.10	%	0.91	%	62.59	%
$	9.90	1.78	%	$	199,980	0.76	%	2.81	%	0.91	%	93.86	%
$	10.09	5.27	%	$	181,797	0.78	%	4.30	%(c)	0.93	%	73.93	%
$	10.05	9.99	%	$	169,839	0.78	%	5.38	%	0.93	%	101.28	%
$	9.79	(0.23	)%	$	440,693	0.69	%	4.42	%	0.79	%	69.65	%
$	10.03	2.34	%	$	539,038	0.70	%	3.67	%	0.83	%	107.04	%
$	10.25	1.56	%	$	534,682	0.80	%	3.15	%	0.92	%	98.35	%
$	10.58	2.88	%	$	447,665	0.82	%	3.43	%	0.92	%	209.07	%
$	10.78	9.11	%	$	340,231	0.85	%	4.81	%(d)	0.95	%	79.36	%
$	10.39	12.68	%	$	279,046	0.85	%	5.38	%	0.95	%	84.76	%
$	10.03	(0.12	)%	$	499,517	0.68	%	4.19	%	0.79	%	102.82	%
$	10.32	2.23	%	$	461,749	0.71	%	3.87	%	0.83	%	173.74	%
$	10.59	3.47	%	$	272,749	0.82	%	4.09	%	0.94	%	31.95	%
$	10.72	8.95	%	$	215,000	0.83	%	4.61	%	0.94	%	43.98	%
$	10.33	5.19	%	$	142,509	0.83	%	5.42	%(e)	0.98	%	69.15	%
$	10.56	12.34	%	$	120,361	0.81	%	6.03	%	0.96	%	142.35	%
$	9.94	0.59	%	$	12,984	0.65	%	3.17	%	0.87	%	24.39	%
$	10.04	1.28	%	$	15,569	0.68	%	2.87	%	0.97	%	37.50	%
$	10.20	2.61	%	$	13,441	0.63	%	2.78	%	1.07	%	24.78	%
$	10.22	3.63	%	$	14,759	0.53	%	2.56	%	1.23	%	42.87	%
$	9.92	0.36	%	$	9,029	0.60	%	3.13	%	0.91	%	86.10	%
$	10.04	1.60	%	$	10,084	0.58	%	2.78	%	1.03	%	44.67	%
$	10.16	2.52	%	$	9,108	0.60	%	2.47	%	1.23	%	55.18	%
$	10.16	2.93	%	$	4,897	0.61	%	2.27	%	1.65	%	40.16	%
$	10.23	0.46	%	$	91,962	0.65	%	3.69	%	0.80	%	38.76	%
$	10.46	1.80	%	$	93,418	0.68	%	3.51	%	0.86	%	60.84	%
$	10.66	2.15	%	$	96,738	0.75	%	3.18	%	0.92	%	67.80	%
$	10.81	3.19	%	$	95,613	0.77	%	3.26	%	0.92	%	44.56	%
$	10.86	7.62	%	$	93,856	0.78	%	3.57	%	0.93	%	20.39	%
$	10.54	9.73	%	$	90,679	0.79	%	3.84	%	0.93	%	47.35	%
$	10.14	0.32	%	$	16,103	0.69	%	3.54	%	0.86	%	26.82	%
$	10.47	1.62	%	$	16,468	0.71	%	3.44	%	0.93	%	56.03	%
$	10.74	2.77	%	$	17,488	0.75	%	3.26	%	0.94	%	32.63	%
$	10.81	3.35	%	$	18,297	0.72	%	3.31	%	0.93	%	32.04	%
$	10.81	7.94	%	$	17,960	0.67	%	3.70	%	0.97	%	21.81	%
$	10.39	9.76	%	$	15,411	0.73	%	3.89	%	1.03	%	36.67	%
$	11.25	0.30	%	$	65,605	0.65	%	3.80	%	0.80	%	52.88	%
$	11.49	1.66	%	$	67,579	0.68	%	3.60	%	0.86	%	48.04	%
$	11.74	2.29	%	$	68,786	0.76	%	3.37	%	0.93	%	45.07	%
$	11.95	3.31	%	$	77,577	0.78	%	3.28	%	0.92	%	34.17	%
$	11.99	7.48	%	$	81,683	0.78	%	3.66	%	0.93	%	13.12	%
$	11.57	9.72	%	$	76,284	0.78	%	3.87	%	0.93	%	31.28	%

See accompanying notes to the financial statements.

93

BB&T Funds

Financial Highlights, Institutional Shares

Selected data for a share of beneficial interest outstanding throughout the periods indicated.

			Investment Activities						Dividends
	Net Asset Value, Beginning of Period		Net investment income (loss)		Net realized/ unrealized gains (losses) on investments		Total from Investment Activities		Net investment income		Net realized gains on investments		Total Dividends
West Virginia Intermediate Tax-Free Fund
For the Six Months Ended March 31, 2006 (Unaudited)	$	9.86	0.19	(c)	(0.11	)	0.08		(0.19	)	(0.06	)	(0.25	)
Year Ended September 30, 2005	$	10.09	0.37	(c)	(0.15	)	0.22		(0.37	)	(0.08	)	(0.45	)
Year Ended September 30, 2004	$	10.21	0.36		(0.09	)	0.27		(0.35	)	(0.04	)	(0.39	)
Year Ended September 30, 2003	$	10.35	0.35		0.02		0.37		(0.35	)	(0.16	)	(0.51	)
Year Ended September 30, 2002	$	10.02	0.41		0.34		0.75		(0.40	)	(0.02	)	(0.42	)
February 1, 2001 to September 30, 2001 (a)	$	9.93	0.30		0.09		0.39		(0.30	)	—		(0.30	)
Year Ended January 31, 2001	$	9.20	0.49		0.73		1.22		(0.49	)	—		(0.49	)
Prime Money Market Fund
For the Six Months Ended March 31, 2006 (Unaudited)	$	1.00	0.02		—	(d)	0.02		(0.02	)	—		(0.02	)
Year Ended September 30, 2005	$	1.00	0.02		—	(d)	0.02		(0.02	)	—		(0.02	)
Year Ended September 30, 2004	$	1.00	0.01		—		0.01		(0.01	)	—		(0.01	)
Year Ended September 30, 2003	$	1.00	0.01		—		0.01		(0.01	)	—		(0.01	)
Year Ended September 30, 2002	$	1.00	0.02		—	(d)	0.02		(0.02	)	—		(0.02	)
Year Ended September 30, 2001	$	1.00	0.05		—		0.05		(0.05	)	—		(0.05	)
U.S. Treasury Money Market Fund
For the Six Months Ended March 31, 2006 (Unaudited)	$	1.00	0.02		—		0.02		(0.02	)	—		(0.02	)
Year Ended September 30, 2005	$	1.00	0.02		—		0.02		(0.02	)	—		(0.02	)
Year Ended September 30, 2004	$	1.00	0.01		—		0.01		(0.01	)	—		(0.01	)
Year Ended September 30, 2003	$	1.00	0.01		—		0.01		(0.01	)	—		(0.01	)
Year Ended September 30, 2002	$	1.00	0.02		—		0.02		(0.02	)	—		(0.02	)
Year Ended September 30, 2001	$	1.00	0.05		—		0.05		(0.05	)	—		(0.05	)
Capital Manager Conservative Growth Fund
For the Six Months Ended March 31, 2006 (Unaudited)	$	9.83	0.17		0.13		0.30		(0.17	)	—		(0.17	)
Year Ended September 30, 2005	$	9.36	0.26		0.46		0.72		(0.25	)	—		(0.25	)
Year Ended September 30, 2004	$	8.90	0.18	(c)	0.46		0.64		(0.18	)	—		(0.18	)
Year Ended September 30, 2003	$	8.33	0.18		0.61		0.79		(0.18	)	(0.04	)	(0.22	)
Year Ended September 30, 2002	$	9.17	0.22		(0.66	)	(0.44	)	(0.22	)	(0.18	)	(0.40	)
Year Ended September 30, 2001	$	10.75	0.32		(1.00	)	(0.68	)	(0.32	)	(0.58	)	(0.90	)
Capital Manager Moderate Growth Fund
For the Six Months Ended March 31, 2006 (Unaudited)	$	9.83	0.14		0.34		0.48		(0.15	)	—		(0.15	)
Year Ended September 30, 2005	$	9.04	0.19	(c)	0.77		0.96		(0.17	)	—		(0.17	)
Year Ended September 30, 2004	$	8.30	0.10	(c)	0.74		0.84		(0.10	)	—		(0.10	)
Year Ended September 30, 2003	$	7.47	0.10		0.82		0.92		(0.08	)	(0.01	)	(0.09	)
Year Ended September 30, 2002	$	8.82	0.14		(0.99	)	(0.85	)	(0.13	)	(0.37	)	(0.50	)
Year Ended September 30, 2001	$	11.25	0.26		(1.71	)	(1.45	)	(0.26	)	(0.72	)	(0.98	)
Capital Manager Growth Fund
For the Six Months Ended March 31, 2006 (Unaudited)	$	9.69	0.13		0.47		0.60		(0.14	)	—		(0.14	)
Year Ended September 30, 2005	$	8.70	0.15	(c)	0.97		1.12		(0.13	)	—		(0.13	)
Year Ended September 30, 2004	$	7.81	0.07	(c)	0.88		0.95		(0.06	)	—		(0.06	)
Year Ended September 30, 2003	$	6.87	0.06	(c)	0.93		0.99		(0.05	)	—		(0.05	)
Year Ended September 30, 2002	$	8.46	0.05		(1.20	)	(1.15	)	(0.04	)	(0.40	)	(0.44	)
Year Ended September 30, 2001	$	11.66	0.18		(2.43	)	(2.25	)	(0.18	)	(0.77	)	(0.95	)
Capital Manager Equity Fund
For the Six Months Ended March 31, 2006 (Unaudited)	$	11.02	0.12		0.72		0.84		(0.13	)	(0.19	)	(0.32	)
Year Ended September 30, 2005	$	9.64	0.12	(c)	1.34		1.46		(0.08	)	—		(0.08	)
Year Ended September 30, 2004	$	8.49	0.04	(c)	1.14		1.18		(0.03	)	—		(0.03	)
Year Ended September 30, 2003	$	7.39	0.02	(c)	1.15		1.17		(0.02	)	(0.05	)	(0.07	)
Year Ended September 30, 2002	$	8.97	(0.01	)	(1.57	)	(1.58	)	—	(d)	—		—	(d)
March 19, 2001 to September 30, 2001 (b)	$	10.00	0.01		(1.03	)	(1.02	)	(0.01	)	—	(d)	(0.01	)

* During the period certain fees were reduced. If such reductions had not occurred, the ratios would have been as indicated.

** Portfolio turnover rate is calculated on the basis of the Fund as a whole without distinguishing between classes of shares issued.

(a) For the period from February 1, 2001 to September 30, 2001. Upon reorganizing as a Fund of the BB&T Funds, the West Virginina Intermediate Tax-Free Fund changed its fiscal year end from January 31 to September 30, 2001. The Financial Highlights for the periods prior to February 1, 2001 represent the OVB West Virginia Tax-Exempt Income Portfolio.

(b) Period from commencement of operations.

(c) Per share net investment income (loss) has been calculated using the average daily shares method.

(d) Amount is less than $0.005.

(e) Not annualized for periods less than one year.

(f) Annualized for periods less than one year.

See accompanying notes to the financial statements.

94

				Ratios/Supplementary Data
Net Asset Value, End of Period		Total Return (e)		Net Assets, End of Period (000)		Ratio of net expenses to average net assets (f)		Ratio of net investment income (loss) to average net assets (f)		Ratio of expenses to average net assets* (f)		Portfolio turnover rate**
$	9.69	0.84	%	$	53,543	0.66	%	3.92	%	0.66	%	21.79	%
$	9.86	2.22	%	$	55,662	0.68	%	3.74	%	0.72	%	32.10	%
$	10.09	2.76	%	$	63,518	0.76	%	3.49	%	0.78	%	16.24	%
$	10.21	3.77	%	$	79,361	0.73	%	3.48	%	0.76	%	25.59	%
$	10.35	7.78	%	$	78,170	0.72	%	4.04	%	0.82	%	61.44	%
$	10.02	4.03	%	$	75,332	0.62	%	4.60	%	0.79	%	15.75	%
$	9.93	13.57	%	$	72,553	0.72	%	5.11	%	0.83	%	7.00	%
$	1.00	1.94	%	$	624,079	0.48	%	3.88	%	0.59	%
$	1.00	2.34	%	$	510,941	0.49	%	2.31	%	0.63	%	—
$	1.00	0.70	%	$	529,849	0.57	%	0.69	%	0.70	%	—
$	1.00	0.87	%	$	667,534	0.60	%	0.86	%	0.69	%	—
$	1.00	1.61	%	$	532,465	0.64	%	1.54	%	0.71	%	—
$	1.00	4.84	%	$	265,472	0.61	%	4.34	%	0.75	%	—
$	1.00	1.81	%	$	535,217	0.47	%	3.61	%	0.60	%
$	1.00	2.11	%	$	592,736	0.48	%	2.02	%	0.64	%	—
$	1.00	0.54	%	$	926,162	0.57	%	0.53	%	0.71	%	—
$	1.00	0.67	%	$	838,022	0.61	%	0.67	%	0.70	%	—
$	1.00	1.40	%	$	915,013	0.65	%	1.35	%	0.72	%	—
$	1.00	4.59	%	$	494,773	0.63	%	4.46	%	0.73	%	—
$	9.96	3.12	%	$	72,429	0.09	%	3.48	%	0.45	%	2.74	%
$	9.83	7.70	%	$	71,796	0.20	%	2.64	%	0.51	%	52.50	%
$	9.36	7.16	%	$	67,925	0.44	%	1.93	%	0.64	%	2.47	%
$	8.90	9.55	%	$	31,748	0.53	%	2.09	%	0.73	%	33.03	%
$	8.33	(5.05	)%	$	26,347	0.54	%	2.47	%	0.74	%	6.29	%
$	9.17	(6.77	)%	$	27,691	0.51	%	3.26	%	0.71	%	35.75	%
$	10.16	4.92	%	$	47,457	0.11	%	3.02	%	0.47	%	5.89	%
$	9.83	10.69	%	$	43,353	0.23	%	2.01	%	0.56	%	37.83	%
$	9.04	10.12	%	$	33,971	0.49	%	1.17	%	0.69	%	0.17	%
$	8.30	12.40	%	$	26,168	0.50	%	1.35	%	0.70	%	21.46	%
$	7.47	(10.55	)%	$	20,977	0.58	%	1.48	%	0.78	%	14.56	%
$	8.82	(13.81	)%	$	25,040	0.51	%	2.67	%	0.71	%	24.24	%
$	10.15	6.19	%	$	41,843	0.12	%	2.74	%	0.48	%	5.59	%
$	9.69	12.89	%	$	37,546	0.23	%	1.60	%	0.57	%	26.22	%
$	8.70	12.10	%	$	28,660	0.50	%	0.77	%	0.73	%	0.19	%
$	7.81	14.49	%	$	21,484	0.56	%	0.82	%	0.76	%	17.80	%
$	6.87	(14.61	)%	$	17,981	0.62	%	0.63	%	0.82	%	8.38	%
$	8.46	(20.68	)%	$	20,855	0.57	%	1.93	%	0.77	%	27.33	%
$	11.54	7.83	%	$	29,417	0.11	%	2.37	%	0.48	%	1.05	%
$	11.02	15.23	%	$	25,802	0.22	%	1.10	%	0.58	%	2.14	%
$	9.64	13.87	%	$	21,051	0.52	%	0.42	%	0.81	%	3.10	%
$	8.49	15.82	%	$	16,077	0.70	%	0.29	%	0.90	%	8.30	%
$	7.39	(17.61	)%	$	11,352	0.83	%	(0.15	)%	1.03	%	5.75	%
$	8.97	(10.22	)%	$	13,464	0.72	%	0.08	%	0.92	%	10.10	%

See accompanying notes to the financial statements.

95

BB&T Funds

Notes to Financial Statements

(Unaudited) March 31, 2006

1. Organization:

The BB&T Funds commenced operations on October 5, 1992 and are registered under the Investment Company Act of 1940, as amended (“the 1940 Act”), as an open-end investment company established as a Massachusetts business trust.

The BB&T Funds offer shares of the Large Cap Fund (formerly known as the Large Company Value Fund), the Large Cap Growth Fund (formerly known as the Large Company Growth Fund), the Mid Cap Value Fund, the Mid Cap Growth Fund, the Small Cap Fund (formerly known as the Small Company Value Fund), the International Equity Fund, the Special Opportunities Equity Fund, the Equity Income Fund, the Short U.S. Government Fund, the Intermediate U.S. Government Fund, the Total Return Bond Fund, the Kentucky Intermediate Tax-Free Fund, the Maryland Intermediate Tax-Free Fund, the North Carolina Intermediate Tax-Free Fund, the South Carolina Intermediate Tax-Free Fund, the Virginia Intermediate Tax-Free Fund, the West Virginia Intermediate Tax-Free Fund, the Prime Money Market Fund, the U.S. Treasury Money Market Fund, the Capital Manager Conservative Growth Fund, the Capital Manager Moderate Growth Fund, the Capital Manager Growth Fund and the Capital Manager Equity Fund (referred to individually as a “Fund” and collectively as the “Funds”). The Kentucky Intermediate Tax-Free Fund, the Maryland Intermediate Tax-Free Fund, the North Carolina Intermediate Tax-Free Fund, the South Carolina Intermediate Tax-Free Fund, the Virginia Intermediate Tax-Free Fund and the West Virginia Intermediate Tax-Free Fund are referred to as the “Tax-Free Funds”. The Prime Money Market Fund and the U.S. Treasury Money Market Fund are referred to as the “Money Market Funds”. The Capital Manager Conservative Growth Fund, the Capital Manager Moderate Growth Fund, the Capital Manager Growth Fund and the Capital Manager Equity Fund are referred to as the “Funds of Funds”. The Funds, excluding the Money Market Funds and the Funds of Funds, are referred to as the “Variable Net Asset Value Funds”. The Funds of Funds invest in other investment companies as opposed to individual securities.

All Funds except the Tax-Free Funds are diversified funds under the 1940 Act. The Tax-Free Funds are non-diversified funds, which means they may concentrate their investments in the securities of a limited number of issuers.

The BB&T Funds are authorized to issue an unlimited amount of shares without par value. The Funds offer up to four classes of shares: Class A Shares, Class B Shares, Class C Shares and Institutional Shares. As of March 31, 2006, Class B Shares and Class C Shares of the Short U.S. Government Fund and the Tax-Free Funds were not yet being offered. Class A Shares of the Variable Net Asset Value Funds and Funds of Funds, excluding the Short U.S. Government Fund, have a maximum sales charge of 5.75% as a percentage of original purchase price. The Class A Shares of the Tax-Free Funds and the Short U.S. Government Fund have a maximum sales charge of 3.00% as a percentage of the original purchase price. Certain purchases of Class 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 less than one year after purchase. The Class B and C Shares of the Funds are offered without any front-end sales charge but will be subject to a maximum CDSC of 5.00% and 1.00%, respectively, if redeemed less than one year after purchase.

Each class of shares has identical rights and privileges except with respect to the fees paid under the distribution plan, voting rights on matters affecting a single class of shares and the exchange privilege of each class of shares.

Under the Funds’ organizational documents, its Officers and Trustees are indemnified against certain liabilities arising out of the performance of their duties to the Funds. In addition, in the normal course of business, the Funds may enter into contracts with their vendors and others that provide for general indemnifications. The Funds’ maximum exposure under these arrangements is unknown as this would involve future claims that may be made against the Funds. However, based on experience, the Funds expect that risk of loss to be remote.

2. Significant Accounting Policies:

The following is a summary of significant accounting policies followed by the Funds in the preparation of their financial statements. The policies are in conformity with accounting principles generally accepted in the United States of America. The preparation of financial statements 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 expenses for the reporting period. Actual results could differ from those estimates.

Continued

96

BB&T Funds

Notes to Financial Statements, continued

(Unaudited) March 31, 2006

Securities Valuation:

Investments of the Money Market Funds are valued in accordance with Rule 2a-7 of the 1940 Act, at amortized cost, which approximates fair value. Under the amortized cost method, discount or premium is amortized on a constant basis to the maturity of the security.

Investments in common stocks, commercial paper, corporate bonds, municipal securities, U.S. Government securities, and U.S. Government agency securities of the Variable Net Asset Value Funds, the principal market for which is a securities exchange or an over-the-counter market, are valued at their latest available sale price (except for those securities that are traded on NASDAQ, which will be valued at the NASDAQ official closing price) or in the absence of such a price, by reference to the latest available bid price in the principal market in which such securities are normally traded. The Variable Net Asset Value Funds may also use an independent pricing service approved by the Board of Trustees to value certain securities. Such prices reflect fair values which may be established through the use of electronic and matrix techniques. Short-term obligations that mature in 60 days or less are valued at either amortized cost or original cost plus interest, which approximates current value. Investments in open-end investment companies, including the Funds of Funds, are valued at their respective net asset values as reported by such companies. Investments in closed-end investment companies are valued at their fair values based upon the latest available bid prices in the principal market in which such securities are normally traded. The differences between cost and fair values of investments are reflected as either unrealized appreciation or depreciation. Securities for which market quotations are not readily available will be valued at fair value using methods determined in good faith by the Pricing Committee under the supervision of the Board of Trustees.

Fair value pricing may be used if events materially affecting the value of foreign securities occur between the time when the exchange on which they are traded closes and the time when the International Equity Fund net asset value is calculated, such securities may be valued at fair value in accordance with procedures adopted by the Board of Trustees. Management identifies possible fluctuations in international securities by monitoring the increase or decrease in the value of a designated benchmark index. In the event of an increase or decrease greater than predetermined levels, the International Equity Fund may use a systematic valuation model provided by an independent third party to fair value their international equity securities.

Foreign Currency Translation:

The accounting records of the International Equity Fund are maintained in U.S. dollars. Foreign currency amounts are translated into U.S. dollars at the current rate of exchange to determine the fair value of investments, assets and liabilities. Purchases and sales of securities, income and expenses are translated at the prevailing rate of exchange, on the respective dates of such transactions. The International Equity Fund does not isolate that portion of the results 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.

Risks Associated with Foreign Securities and Currencies:

Investments in securities of foreign issuers carry certain risks not ordinarily associated with investments in securities of domestic issuers. Such 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 the possibility of expropriation of assets, confiscatory taxation, political or social instability or diplomatic developments which could adversely affect investments in those countries. Certain foreign investments may also be subject to foreign withholding taxes.

Forward Foreign Currency Exchange Contracts:

The International Equity Fund may enter into forward foreign currency exchange contracts in connection with planned purchases or sales of securities or to hedge the U.S. dollar value of Fund securities denominated in a particular currency. The Fund could be exposed to risks if the counter-parties to the contracts are unable to meet the terms of their contracts and from unanticipated movements in the value of a foreign currency relative to the U.S. dollar. The forward foreign currency exchange contracts are adjusted by the daily exchange rate of the underlying currency and any gains or losses are recorded for financial statement purposes as unrealized gains or losses until the contract settlement date.

Continued

97

BB&T Funds

Notes to Financial Statements, continued

(Unaudited) March 31, 2006

Futures Contracts:

The Variable Net Asset Value Funds may invest in financial futures contracts for the purpose of hedging their existing securities or securities it intends to purchase against fluctuations in fair value caused by changes in prevailing markets. Upon entering into a financial futures contract, the Fund is required to pledge to the broker an amount of cash and/or other assets equal to a certain percentage of the contract amount (initial margin deposit). Subsequent payments, known as “variation margin,” are made or received by the Fund each day, depending on the daily fluctuations in the fair value of the underlying security. The Fund recognizes a gain or loss equal to the daily variation margin. Should market conditions move unexpectedly, the Fund may not achieve the anticipated benefits of the financial futures contracts and may realize a loss. The use of futures transactions involves the risk of imperfect correlation in movements in the price of futures contracts and the underlying hedged assets. The Funds held no financial futures contracts as of March 31, 2006.

Securities Transactions and Related Income:

During the period, security transactions are accounted for no later than one business day after trade date. For financial reporting purposes, however, security transactions are accounted for on trade date of the last business day of the reporting period. Interest income is recognized on the accrual basis and includes, where applicable, the pro-rata amortization/accretion of premium or discount. Dividend income is recorded on the ex-dividend date. Gains or losses realized from sales of securities are determined by comparing the identified cost of the security lot sold with the net sales proceeds.

When-Issued and Forward Commitments:

The Funds, with the exception of the U.S. Treasury Money Market Fund, may purchase securities on a “when-issued” basis. The Large Cap Fund, the Large Cap Growth Fund, the Mid Cap Value Fund, the Mid Cap Growth Fund, the Small Cap Fund, the International Equity Fund, the Special Opportunites Equity Fund, the Equity Income Fund and the Prime Money Market Fund may also purchase or sell securities on a forward commitment basis. The Funds record when-issued securities on the trade date and pledge assets with a value equal to the purchase commitment for payment of the securities purchased. The value of the securities underlying when-issued or forward commitments to purchase securities, and any subsequent fluctuation in their value is taken into account when determining the net asset value of the Funds commencing with the date the Funds agree to purchase the securities. The Funds do not accrue interest or dividends on “when-issued” securities until the underlying securities are received.

Repurchase Agreements and Collateralized Loan Agreements:

The Funds may enter into agreements with member banks of the Federal Deposit Insurance Corporation and with registered broker/dealers that BB&T deems creditworthy under guidelines approved by the Board of Trustees, subject to the seller’s agreement to repurchase such securities at a mutually agreed-upon date and price. The repurchase price generally equals the price paid by the Fund plus interest negotiated on the basis of current short-term rates, which may be more or less than the rate on the underlying Fund securities. The seller, under these types of agreements, is required to maintain the value of collateral held pursuant to the agreement at not less than the repurchase price (including accrued interest). Securities subject to repurchase are held by the Funds’ custodian, another qualified custodian, or in the Federal Reserve/Treasury book-entry system. In the event of counterparty default, the Fund has the right to use the collateral to offset losses incurred. There is potential for loss to the Fund in the event the Fund is delayed or prevented from exercising its rights to dispose of the collateral securities, including the risk of a possible decline in the fair value of the underlying securities during the period while the Fund seeks to assert its rights.

Written Options:

The risk associated with purchasing an option is that the Fund pays a premium whether or not the option is exercised. Additionally, the Funds bear the risk of loss of the premium and change in fair value should the counterparty not perform under the contract. Put and call options purchased are accounted for in the same manner as other securities owned. The cost of securities acquired through the exercise of call options is increased by the premiums paid. The proceeds from securities sold through the exercise of put options are decreased by the premiums paid.

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In writing an option, the Funds contract with a specified counterparty to purchase (written put option) or sell (written call option) a specified quantity (notional amount) of an underlying asset at a specified price during a specified period upon demand of the counterparty. The risk associated with writing an option is that the Funds bear the market risk of an unfavorable change in the price of an underlying asset and may be required to buy or sell an underlying asset under the contractual terms of the option at a price different from the current fair value.

The Large Cap Fund, the Large Cap Growth Fund, the Mid Cap Value Fund, the Mid Cap Growth Fund, the Small Cap Fund, the International Equity Fund, the Special Opportunities Equity Fund, the Equity Income Fund and the Funds of Funds each may write covered call options and the Large Cap Growth Fund and International Equity Fund may purchase put options that are traded on recognized U.S. exchanges and enter into closing transactions with respect to such options. The Special Opportunities Equity Fund and the Equity Income Fund had the following transactions in written covered call options during the period ended March 31, 2006.

	Special Opportunities Equity Fund					Equity Income Fund
Covered Call Options	Shares Subject to Contract		Premiums			Shares Subject to Contract	Premiums
Balance at beginning of period	895		$	51,170		—	$	—
Options written	3,462			219,450		620		164,669
Options closed	—			—		—		—
Options expired	(433	)		(30,091	)	—		—
Options exercised	(895	)		(51,170	)	—		—
Balance at end of period	3,029		$	189,359		620	$	164,669

The following is a summary of options outstanding as of March 31, 2006:

Security	Shares Subject to Contract	Fair Value
Special Opportunities Equity Fund
Consol Energy, Inc., $90.00, 4/22/06	430	$	2,150
Consol Energy, Inc., $80.00, 5/20/06	670		103,850
L-3 Communication Holdings, $100.00, 7/22/06	809		28,315
Pioneer Natural Resources Co., $55.00, 6/17/06	1,120		44,800
		$	179,115
Equity Income Fund
Kinder Morgan, Inc., $105.00, 5/20/06	250	$	1,250
Petroleo Brasileiro S.A., $100.00, 4/22/06	370		1,850
		$	3,100

Security Loans:

To generate additional income, the Funds may lend up to 33 ^1/3% of their respective assets pursuant to agreements requiring that the loan be continuously secured by any combination of cash, U.S. Government or U.S. Government agency securities, equal at all times to at least 100% of the fair value.

The cash collateral received by the Funds was pooled and at March 31, 2006 was invested in Commercial Paper, Corporate Bonds, Mutual Funds, and Repurchase Agreements (with interest rates ranging from 1.00% to 5.78% and maturity dates ranging from April 2006 through December 2015). The Funds receive payments from borrowers equivalent to the dividends and interest that would have been earned on securities lent while simultaneously seeking to earn income on the investment of collateral. Collateral is marked to market daily to provide a level of collateral at least equal to the fair value of securities lent. There may be

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risks of delay in recovery of the securities or even loss of rights in the collateral should the borrower of the securities fail financially. However, loans will be made only to borrowers, such as broker-dealers, banks or institutional borrowers of securities, deemed by BB&T Funds to be of good standing and creditworthy under guidelines established by the Board of Trustees and when, in the judgement of BB&T Funds, the consideration which can be earned currently from such securities loans justifies the attendant risks. Loans are subject to termination by the Funds or the borrower at any time and are, therefore, not considered to be illiquid investments. As of March 31, 2006, the following Funds had loans outstanding:

	Value of Loaned Securities		Value of Collateral		Average Value on Loan for the period ended March 31, 2006
Large Cap Fund	$	163,269,303	$	169,698,443	$	169,814,773
Large Cap Growth Fund		109,850,550		113,502,460		94,910,463
Mid Cap Value Fund		52,195,662		54,206,019		56,427,599
Mid Cap Growth Fund		78,490,751		80,855,263		65,842,321
Small Cap Fund		31,842,664		32,946,276		13,865,103
Short U.S. Government Fund		65,298,648		66,686,726		70,027,335
Intermediate U.S. Government Fund		151,810,794		155,213,593		193,544,370
Total Return Bond Fund		139,383,711		142,805,013		165,628,488
U.S. Treasury Money Market Fund		—		—		232,419,339

Allocation Methodology:

Expenses directly attributable to a Fund are charged to that Fund. Expenses not directly attributable to a Fund are allocated proportionately among all Funds daily in relation to the net assets of each Fund or on another reasonable basis. Each class of shares bears its pro-rata portion of expenses attributable to its series, except that each class separately bears expenses related specifically to that class, such as distribution fees. Expenses that are attributable to more than one Trust are allocated across the BB&T Funds and BB&T Variable Insurance Funds based upon relative net assets or on another reasonable basis. BB&T Asset Management, Inc. (“BB&T”) serves as the Investment Advisor for each of the BB&T Funds. Income and realized and unrealized gains or losses on investments are allocated to each class of shares based on its relative net assets or another appropriate basis.

Dividends to Shareholders:

Dividends from net investment income are declared daily and paid monthly for the Short U.S. Government Fund, the Intermediate U.S. Government Fund, the Total Return Bond Fund, the Tax-Free Funds and the Money Market Funds. Dividends from net investment income are declared and paid monthly for the Large Cap Fund, the Mid Cap Value Fund and the Small Cap Fund. Dividends from net investment income are declared and paid quarterly for the Large Cap Growth Fund, the Mid Cap Growth Fund, the International Equity Fund, the Special Opportunities Equity Fund, the Equity Income Fund and the Funds of Funds. Distributable net realized gains, if any, are declared and distributed at least annually.

The character of income and gains distributed are determined in accordance with federal income tax regulations, which may differ from accounting principles generally accepted in the United States of America. These “book/tax” differences are either considered temporary or permanent in nature. To the extent these differences are permanent in nature (e.g. reclass of market discounts, gain/loss, paydowns and distributions), such amounts are reclassified within the composition of net assets based on their federal tax-basis treatment; temporary differences do not require reclassification. Dividends to shareholders which exceed net investment income and net realized gains for tax purposes are reported as distributions of capital or return of capital.

Redemption Fees:

Effective November 4, 2005, the holding period for shares redeemed or exchanged was reduced from 30 days to 7 days. For shares of the BB&T Funds, that were redeemed or exchanged in less than 7 days a fee of 2% of the total redemption amounts may be assessed subject to certain exceptions or limitation. These exceptions include but are not limited to redemptions or exchanges in the BB&T Money Market Funds, automatic non-discretionary rebalancing programs and systematic withdrawal plans. The fee is

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applied to shares redeemed or exchanged in the order in which they were purchased, and is retained by the Funds for the benefit of remaining shareholders to defray Fund portfolio transaction expenses and facilitate portfolio management. For financial statement purposes, these amounts are included in the Statements of Changes in Net Assets as “proceeds from Shares Issued”. Fees for the Funds during the year ended September 30, 2005 and the six months ended March 31, 2006, were as follows:

Fund	For the Year Ended September 30, 2005		For the Six Months Ended March 31, 2006
Large Cap Fund	$	4,386	$	51
Large Cap Growth Fund		243		2
Mid Cap Value Fund		3,315		254
Mid Cap Growth Fund		2,070		4
Small Cap Fund		252		222
International Equity Fund		121		—
Special Opportunities Equity Fund		3,382		2,214
Equity Income Fund		1,029		220
Short U.S. Government Fund		2,362		872
Intermediate U.S. Government Fund		2,308		1,779
Total Return Bond Fund		6,570		7,373
Kentucky Intermediate Tax-Free Fund		—		—
Maryland Intermediate Tax-Free Fund		—		—
North Carolina Intermediate Tax-Free Fund		564		—
South Carolina Intermediate Tax-Free Fund		—		—
Virginia Intermediate Tax-Free Fund		—		—
West Virginia Intermediate Tax-Free Fund		2		1,646
Prime Money Market Fund		—		—
U.S. Treasury Money Market Fund		—		—
Capital Manager Conservative Growth Fund		1,484		—
Capital Manager Moderate Growth Fund		567		34
Capital Manager Growth Fund		204		135
Capital Manager Equity Fund		208		5

3. Conversion of the BB&T Small Cap Fund and the BB&T Small Company Growth Fund:

On March 27, 2006, net assets of the Small Company Growth Fund managed by BB&T Asset Management, Inc. (“BB&T”) were exchanged in a tax-free conversion for shares of the BB&T Small Cap Fund. The following is summary of shares issued, net assets converted, net asset value per share issued and unrealized appreciation/depreciation of assets acquired as of the conversion date:

Small Cap Fund	Shares Issued	Net Assets Converted		Net Asset Value Per Share Issued		Unrealized Appreciation (Depreciation)
A Shares	519,217	$	8,076,416	$	15.56	$	3,875,617
B Shares	32,692		4,879,881		15.22		(1,836,336	)
C Shares	1,265		19,229		15.20		(2,775	)
Institutional Shares	2,617,536		40,922,638		15.63		(940,425	)

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4. Purchases and Sales of Securities:

Purchases and sales of securities (excluding securities maturing less than one year from acquisition) for the period ended March 31, 2006 were as follows:

	Purchases		Sales
Large Cap Fund	$	83,867,707	$	81,677,254
Large Cap Growth Fund	$	305,850,068	$	271,872,754
Mid Cap Value Fund	$	61,050,075	$	49,247,515
Mid Cap Growth Fund	$	81,888,677	$	72,884,273
Small Cap Fund	$	24,478,228	$	15,073,061
International Equity Fund	$	65,420,165	$	56,072,202
Special Opportunities Equity Fund	$	48,926,790	$	62,151,921
Equity Income Fund	$	35,722,743	$	22,059,992
Short U.S. Government Fund	$	4,554,566	$	27,249,862
Intermediate U.S. Government Fund	$	277,479,462	$	336,212,710
Total Return Bond Fund	$	497,240,874	$	428,329,264
Kentucky Intermediate Tax-Free Fund	$	4,031,991	$	6,813,043
Maryland Intermediate Tax-Free Fund	$	9,170,085	$	10,220,538
North Carolina Intermediate Tax-Free Fund	$	43,178,193	$	50,576,364
South Carolina Intermediate Tax-Free Fund	$	6,030,069	$	5,266,871
Virginia Intermediate Tax-Free Fund	$	42,065,486	$	40,944,023
West Virginia Intermediate Tax-Free Fund	$	15,421,708	$	14,590,759
Capital Manager Conservative Growth Fund	$	4,613,854	$	2,285,000
Capital Manager Moderate Growth Fund	$	13,266,766	$	5,555,000
Capital Manager Growth Fund	$	12,737,079	$	4,095,000
Capital Manager Equity Fund	$	4,490,265	$	420,000

Purchases and sales of U.S. Government Securities (excluding securities maturing less than one year from acquisition) for the period ended March 31, 2006 were as follows:

	Purchases		Sales
Short U.S. Government Fund	$	10,641,712	$	9,287,839
Intermediate U.S. Government Fund	$	78,947,825	$	101,401,655
Total Return Bond Fund	$	119,531,656	$	105,584,331

Restricted Securities:

A restricted security is a security which has been purchased through a private offering and cannot be resold to the general public without prior registration under the Securities Act of 1933 (The “1933 Act”) or pursuant to the resale limitations provided by Rule 144 under the 1933 Act, or an exemption from the registration requirements of the 1933 Act. Whether a restricted security is illiquid is determined pursuant to guidelines established by the Board of Trustees. Not all restricted securities are considered illiquid. At March 31, 2006, the North Carolina Intermediate Tax-Free Fund and the Prime Money Market Fund held illiquid restricted securities representing 2.0% and 4.8% of net assets, respectively. The illiquid restricted securities held as of March 31, 2006 are identified below:

Security	Acquisition Date	Acquistition Cost		Principal Amount		Fair Value
BB&T North Carolina Intermediate Tax-Free Fund
North Carolina Capital Facilities Finance Agency, 5.25%, 5/1/15, Callable 5/1/06 @ 102	5/15/2003	$	2,186,758	$	2,182,982	$	2,228,279

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Security	Acquisition Date	Acquistition Cost		Principal Amount		Fair Value
BB&T Prime Money Market Fund
Genworth Life Insurance Co., 4.81%, 5/9/06	5/9/2005	$	5,000,000	$	5,000,000	$	5,000,000
Goldman Sachs Group, Inc., 4.72%, 4/10/06	4/8/2005		5,000,000		5,000,000		5,000,000
Jackson National Life Insurance Co., 4.73%, 4/3/06	7/1/2005		2,000,000		2,000,000		2,000,000
Metropolitan Life Insurance Co., 4.80%, 5/1/06	2/10/2003		5,000,000		5,000,000		5,000,000
Monet Trust, 2000-1, 5.03%, 6/28/06	9/27/2000		30,000,000		30,000,000		30,000,000
New York Life Insurance Co., 4.92%, 6/1/06	8/26/2005		5,000,000		5,000,000		5,000,000
Travelers Insurance Co., 4.86%, 5/22/06	8/19/2005		5,000,000		5,000,000		5,000,000

5. Related Party Transactions:

Investment advisory services are provided to the Funds by BB&T. Under the terms of the Investment Advisory Agreement, BB&T is entitled to receive fees based on a percentage of the average daily net assets of each of the Funds.

Information regarding these transactions is as follows for the period ended March 31, 2006:

	Contractual Fee Rate		Fee Rate after Contractual Waivers(1)		Fee Rate after Contractual Waivers(2)*
Large Cap Fund	0.74	%	0.67	%	0.70	%
Large Cap Growth Fund	0.74	%	0.67	%	0.70	%
Mid Cap Value Fund	0.74	%	0.67	%	0.70	%
Mid Cap Growth Fund	0.74	%	0.67	%	0.70	%
Small Cap Fund	1.00	%	0.80	%	0.80	%
International Equity Fund	1.00	%	0.90	%	0.90	%
Special Opportunities Equity Fund	0.80	%	0.80	%	0.80	%
Equity Income Fund	0.70	%	0.70	%	0.70	%
Short U.S. Government Fund	0.60	%	0.45	%	0.45	%
Intermediate U.S. Government Fund	0.60	%	0.50	%	0.48	%
Total Return Bond Fund	0.60	%	0.50	%	0.48	%
Kentucky Intermediate Tax-Free Fund	0.60	%	0.40	%	0.40	%
Maryland Intermediate Tax-Free Fund	0.60	%	0.30	%	0.30	%
North Carolina Intermediate Tax-Free Fund	0.60	%	0.45	%	0.45	%
South Carolina Intermediate Tax-Free Fund	0.60	%	0.45	%	0.45	%
Virginia Intermediate Tax-Free Fund	0.60	%	0.45	%	0.45	%
West Virginia Intermediate Tax-Free Fund	0.45	%	0.45	%	0.45	%
Prime Money Market Fund	0.40	%	0.29	%	0.29	%
U.S. Treasury Money Market Fund	0.40	%	0.28	%	0.26	%
Capital Manager Conservative Growth Fund	0.25	%	0.00	%	0.00	%
Capital Manager Moderate Growth Fund	0.25	%	0.00	%	0.00	%
Capital Manager Growth Fund	0.25	%	0.00	%	0.00	%
Capital Manager Equity Fund	0.25	%	0.00	%	0.00	%

* Effective February 1, 2006, BB&T has contractually agreed to waive a portion of the investment advisory fee as disclosed in the table above. For the period ended March 31, 2006, BB&T voluntarily agreed to waive an additional portion of the investment advisory fees. All contractual and voluntary investment advisory fee waivers are not subject to recoupment in subsequent fiscal periods.

(1) For the period October 1, 2005 through January 31, 2006.

(2) For the period February 1, 2006 through March 31, 2006.

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Pursuant to a Sub-Advisory agreement with BB&T, UBS Global Asset Management (Americas), Inc. (“UBS”) serves as the Sub-Advisor to the International Equity Fund, subject to the general supervision of the Funds’ Board of Trustees and BB&T. Pursuant to a Sub-Advisory agreement with BB&T, Federated Investment Management Company (“Federated”) serves as the Sub-Advisor to the Prime Money Market Fund, subject to the general supervision of the Funds’ Board of Trustees and BB&T. Pursuant to a Sub-Advisory agreement with BB&T, Scott & Stringfellow, Inc., a wholly owned subsidiary of BB&T Corporation, serves as the Sub-Advisor to the Equity Income Fund and the Special Opportunities Equity Fund, subject to the general supervision of the Funds’ Board of Trustees and BB&T. Pursuant to a Sub-Advisory agreement with BB&T, Sterling Capital Management LLC, a wholly owned subsidiary of BB&T Corporation, serves as the Sub-Advisor to the Mid Cap Value Fund and the Total Return Bond Fund, subject to the general supervision of the Funds’ Board of Trustees and BB&T. For their services, Sub-Advisors are entitled to a fee, payable by BB&T.

BB&T serves the Funds as administrator. BB&T receives compensation for providing administration services at a rate of 0.12% of the BB&T Funds and BB&T Variable Insurance Funds aggregate average daily net assets up to $5 billion and a rate of 0.08% of the aggregate average daily net assets in excess of $5 billion. This fee is accrued daily and payable on a monthly basis. Expenses incurred are reflected on the Statement of Operations as “Administration fees”. BB&T voluntarily waived fees of $48,956, $55,409, $43,048 and $23,468, respectively of administration fees of the Funds of Funds for the period ended March 31, 2006. Administration fee waivers are included on the Statement of Operations as “Less expenses waived by the administrator” and these waivers are not subject to recoupment in subsequent fiscal periods. Pursuant to a Sub-Administration Agreement with BB&T, BISYS serves as sub-administrator to the Funds subject to the general supervision of the Funds’ Board of Trustees and BB&T. For these services, BISYS is entitled to a fee, payable by BB&T.

BISYS Fund Services Ohio, Inc. (“BISYS Ohio”) serves the Funds as fund accountant and transfer agent and receives compensation for providing fund accounting and transfer agency services at a rate of 0.02% (0.01% for each service) of the average daily net assets of each Fund. Expenses incurred are reflected on the Statement of Operations as “Fund accounting fees” and “Transfer agency fees”, respectively.

Under a Compliance Services Agreement between the Trust and BISYS Ohio (the “CCO Agreement”), BISYS Ohio makes an employee available to serve as the Trusts’ Chief Compliance Officer (the “CCO”). Under the CCO Agreement, BISYS Ohio also provides infrastructure and support in implementing the written policies and procedures comprising the Funds’ compliance program, including support services to the CCO. Expenses incurred for the Fund are reflected on the Statement of Operations as “Compliance service fees”. BISYS Ohio pays the salary and other compensation earned by any such individuals as employees of BISYS Ohio.

For the reporting period ended March 31, 2006, the Funds’ paid $233,122 in brokerage fees to Scott & Stringfellow, Inc. a wholly owned subsidiary of BB&T Corporation, on the execution of purchases and sales of the Funds’ portfolio investments.

BB&T Funds Distributor, Inc. (“BBTFDI”) serves as distributor to each Fund of the BB&T Funds pursuant to a Distribution Agreement (the “Distribution Agreement”). BBTFDI has contractually agreed to waive a portion of the Class A shares distribution fees throughout the year. Effective February 1, 2006 and through January 31, 2007, BBTFDI has contractually agreed to waive 0.25% of the Class A distribution fees of the Funds except for the Mid Cap Value Fund, Mid Cap Growth Fund, West Virginia Intermediate Tax-Free Fund, Prime Money Market Fund and the U.S. Treasury Money Market Fund. BBTFDI waived fees totaling $389,741 of distribution fees for the period ended March 31, 2006. Distribution fee waivers are included in the Statement of Operations as “Less expenses waived by the Distributor” and these waivers are not subject to recoupment in subsequent fiscal periods.

The Funds have adopted a Distribution and Shareholder Services Plan (the “Plan”) in accordance with Rule 12b-1 under the 1940 Act. The Plan provides for payments to the distributor of up to 0.50%, 1.00% and 1.00% of the average daily net assets of the Class A Shares, Class B Shares, and Class C Shares, respectively, with exception of the Mid Cap Value Fund, the Mid Cap Growth Fund and the West Virginia Intermediate Tax-Free Fund which receives payments of up to 0.25% of the average daily net assets for Class A. The fees may be used by BBTFDI to pay banks, including the advisor, broker dealers and other institutions. As

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distributor, BBTFDI is entitled to receive commissions on sales of shares of the Variable Net Asset Value Funds. Commissions paid to affiliated broker dealers during the period ended March 31, 2006 were $1,684,324.

The Advisor and/or its affiliated may pay out of their own assets compensation to broker-dealers and other persons for the sale and distribution of the Shares and/or for the servicing of the Shares. These are additional payments over and above the sales charge (including Rule 12b-1 fees) and service fees paid by the Funds. The payments, which may be different for different financial institutions, will not change the price an investor will pay for Shares of the amount that a Fund will receive for the sale of Shares.

Certain Officers and Trustees of the Funds are affiliated with the adviser, the administrator, or the sub-administrator. Such Officers and Trustees receive no compensation from the Funds for serving in their respective roles. Each of the five non-interested Trustees who serve on both the Board and the Audit Committee are compensated $6,000 per quarter and $2,400 for each regularly scheduled meeting, plus reimbursement for certain expenses. During the period ended March 31, 2006, actual Trustee compensation was $82,693 in total.

6. Concentration of Credit Risk:

The Tax-Free Funds invest primarily in debt instruments of municipal issuers in their respective states. The issuers’ abilities to meet their obligations may be affected by economic developments in a specific state or region.

7. Federal Income Tax Information:

It is the policy of the Funds 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 of net investment income and net realized capital gains sufficient to relieve it from all, or substantially all, federal income taxes. Accordingly, no provision for federal income tax is required.

As of the latest tax year end, the following Funds have net capital loss carryforwards available to offset future net capital gains, if any, to the extent provided by the Treasury regulations. To the extent that these carryforwards are used to offset future capital gains, it is probable that the gains that are offset will not be distributed to shareholders.

	Amount		Expires
Large Cap Growth Fund	$	22,406,131	2011
International Equity Fund		966,121	2010
International Equity Fund		18,261,749	2011
Short U.S. Government Fund		349,217	2008
Short U.S. Government Fund		498,342	2009
Short U.S. Government Fund		118,919	2012
Short U.S. Government Fund		2,094,190	2013
Intermediate U.S. Government Fund		222,709	2013
Kentucky Intermediate Tax-Free Fund		7,545	2011
Maryland Intermediate Tax-Free Fund		18,343	2011
Maryland Intermediate Tax-Free Fund		113,581	2013
Capital Manager Conservative Growth Fund		2,499,567	2012
Capital Manager Conservative Growth Fund		164,216	2013
Capital Manager Moderate Growth Fund		1,485,767	2012
Capital Manager Growth Fund		132,146	2012

Continued

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Under current tax law, capital losses realized after October 31 of a Fund’s fiscal year may be deferred and treated as occurring on the first business day of the following fiscal year for tax purposes. The following Funds had deferred post October capital and currency losses, which will be treated as arising on the first business day of the fiscal year ending September 30, 2006:

	Post-October Losses
International Equity Fund	$	482,056
Short U.S. Government Fund		1,237,179
Intermediate U.S. Government Fund		2,901,632
Maryland Intermediate Tax-Free Fund		19,465
Capital Manager Conservative Growth Fund		482,832
Capital Manager Moderate Growth Fund		306,360
Capital Manager Growth Fund		1,054,501
Capital Manager Equity Fund		19,325

At March 31, 2006 the cost, gross unrealized appreciation and gross unrealized depreciation on securities for federal income tax purposes, were as follows:

	Tax Cost		Tax Unrealized Appreciation		Tax Unrealized Depreciation			Net Unrealized Appreciation (Depreciation)
Large Cap Fund	$	694,355,331	$	194,126,012	$	(7,431,899	)	$	186,694,113
Large Cap Growth Fund		454,196,439		53,538,540		(5,584,328	)		47,954,212
Mid Cap Value Fund		262,087,236		24,870,669		(8,092,640	)		16,778,029
Mid Cap Growth Fund		200,117,975		47,650,439		(428,524	)		47,221,915
Small Cap Fund		140,465,219		23,006,081		(1,023,337	)		21,982,744
International Equity Fund		199,003,929		66,398,897		(4,042,323	)		62,356,574
Special Opportunities Equity Fund		161,966,715		32,900,207		(1,170,527	)		31,729,680
Equity Income Fund		89,990,170		13,052,932		(1,237,444	)		11,815,488
Short U.S. Government Fund		208,712,311		129,717		(4,684,084	)		(4,554,367	)
Intermediate U.S. Government Fund		623,189,066		157,492		(12,558,258	)		(12,400,766	)
Total Return Bond Fund		722,937,952		56,733		(11,158,004	)		(11,101,271	)
Kentucky Intermediate Tax-Free Fund		15,367,547		87,650		(62,709	)		24,941
Maryland Intermediate Tax-Free Fund		10,697,446		37,054		(47,018	)		(9,964	)
North Carolina Intermediate Tax-Free Fund		111,406,001		1,948,767		(314,859	)		1,633,908
South Carolina Intermediate Tax-Free Fund		20,340,034		326,437		(98,041	)		228,396
Virginia Intermediate Tax-Free Fund		75,184,327		1,783,769		(76,254	)		1,707,515
West Virginia Intermediate Tax-Free Fund		68,814,673		1,034,911		(156,893	)		878,018
Prime Money Market Fund		1,183,270,879		—		—			—
U.S. Treasury Money Market Fund		656,783,067		—		—			—
Capital Manager Conservative Growth Fund		81,416,892		7,864,025		(2,017,002	)		5,847,023
Capital Manager Moderate Growth Fund		95,202,394		9,877,284		(2,018,760	)		7,858,524
Capital Manager Growth Fund		77,950,640		7,057,264		(1,840,782	)		5,216,482
Capital Manager Equity Fund		39,876,421		5,597,659		(186,604	)		5,411,055

Continued

106

BB&T Funds

Notes to Financial Statements, continued

(Unaudited) March 31, 2006

8. Special Meeting of Shareholders:

On November 11, 2005, there was a special meeting of the shareholders of the BB&T Small Cap Fund. The purpose of the meeting was: (1) to approve an amendment to the investment objective of the BB&T Small Cap Fund. A description of the proposal and the number of shares voted is as follows:

1. Approve an amendment to the investment objective of the Small Cap Fund to seek “long-term capital appreciation” by investing the Fund’s assets primarily in a diversified portfolio of equity and equity-related securities of small capitalization companies.

AFFIRMATIVE	AGAINST	ABSTAIN
3,070,854	5,170	1,855

On March 23, 2006, there was a special meeting of the shareholders of the BB&T Small Company Growth Fund and the BB&T Small Cap Fund. The purpose of the meeting was: (1) to consider and act upon a Plan of Reorganization (“Reorganization Plan”) adopted by BB&T Funds providing for the transfer of all the assets of the BB&T Small Company Growth Fund in exchange the BB&T Small Cap Fund and the assumption by the BB&T Small Cap Fund of all the liabilities of the BB&T Small Company Growth Fund, followed by the dissolution and liquidation of the BB&T Small Company Growth Fund and the distribution of Shares of the BB&T Small Cap Fund to the shareholders of the BB&T Small Company Growth Fund, and (2) to transact such other business as may properly come before the Special Meeting or any adjournment thereof. A description of the proposal and the number of shares voted is as follows:

1. To consider and act upon a Plan of Reorganization (“Reorganization Plan”) adopted by BB&T Funds providing for the transfer of all the assets of the BB&T Small Company Growth Fund in exchange the BB&T Small Cap Fund and the assumption by the BB&T Small Cap Fund of all the liabilities of the BB&T Small Company Growth Fund, followed by the dissolution and liquidation of the BB&T Small Company Growth Fund and the distribution of Shares of the BB&T Small Cap Fund to the shareholders of the BB&T Small Company Growth Fund.

AFFIRMATIVE	AGAINST	ABSTAIN
2,496,986	2,431	4,552

2. To transact such other business as may properly come before the Special Meeting or any adjournment thereof.

AFFIRMATIVE	AGAINST	ABSTAIN
121,024	2,377,025	5,920

107

BB&T Funds

Other Information (Unaudited)

A description of the policies and procedures that the Funds use to determine how to vote proxies relating to portfolio securities is available (i) without charge, upon request, by calling 1-800-228-1872; and (ii) on the Securities and Exchange Commission’s (the “Commission”) website at http://www.sec.gov.

Information regarding how the Funds voted proxies relating to portfolio securities during the most recent 12-month period ended June 30^th is available (i) without charge, upon request, by calling 1-800-228-1872 and (ii) on the Commission’s website at http://www.sec.gov.

The BB&T Funds file complete Schedules of Portfolio Holdings with the Commission for the first and third quarters of each fiscal year on Form N-Q. The Funds’ Forms N-Q are available without charge on the Commission’s website at http://www.sec.gov, or may be reviewed and copied at the Commission’s Public Reference Roon in Washington, D.C. Information on the operation of the Public Reference Room may be obtained by calling 1-800-SEC-0330.

108

Semi-Annual Report March 31, 2006

INVESTMENT ADVISER

BB&T Asset Management, Inc.

P.O. Box 29575

Raleigh, NC 27626-0575

DISTRIBUTOR

BB&T Funds Distributor, Inc.

3435 Stelzer Road

Columbus, OH 43219

LEGAL COUNSEL

Ropes & Gray LLP

One Metro Center

700 12th Street, N.W.

Suite 900

Washington D. C. 20005

TRANSFER AGENT

BISYS Fund Services Ohio, Inc.

3435 Stelzer Road

Columbus, OH 43219

AUDITORS

KPMG LLP

191 W. Nationwide Boulevard

Suite 500

Columbus, OH 43215

Item 2. Code of Ethics.

Not applicable – only for annual reports.

Item 3. Audit Committee Financial Expert.

Not applicable – only for annual reports.

Item 4. Principal Accountant Fees and Services.

Not applicable – only for annual reports.

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 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.

(b)There were no changes in the registrant’s internal control over financial reporting (as defined in Rule 30a-3(d) under the Act (17 CFR 270.30a-3(d)) that occurred during the second fiscal quarter of the period covered by this report that have materially affected or are reasonably likely to materially affect, the registrant’s internal control over financial reporting.

Item 12. Exhibits.

(a)(1)	Not applicable - Only effective for annual reports.
(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) BB&T Funds
By (Signature and Title)*	/s/ Troy A. Sheets, Treasurer
	Troy A. Sheets, Treasurer

Date June 2, 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/ Keith F. Karlawish, President
	Keith F. Karlawish, President

Date June 2, 2006

By (Signature and Title)*	/s/ Troy A. Sheets, Treasurer
	Troy A. Sheets, Treasurer

Date June 2, 2006

* Print the name and title of each signing officer under his or her signature.