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 Mall, 5th Floor
Raleigh, NC 27601-0575
(Address of principal executive offices) (Zip code)
E.G. Purcell, III, President
BB&T Funds
434 Fayetteville Street Mall, 5th Floor
Raleigh, NC 27601-0575
(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: September 30, 2008
Form N-CSR is to be used by management investment companies to file reports with the Commission not later than 10 days after the transmission to stockholders of any report that is required to be transmitted to stockholders under Rule 30e-1 under the Investment Company Act of 1940 (17 CFR 270.30e-1). The Commission may use the information provided on Form N-CSR in its regulatory, disclosure review, inspection, and policymaking roles.
A registrant is required to disclose the information specified by Form N-CSR, and the Commission will make this information public. A registrant is not required to respond to the collection of information contained in Form N-CSR unless the Form displays a currently valid Office of Management and Budget (“OMB”) control number. Please direct comments concerning the accuracy of the information collection burden estimate and any suggestions for reducing the burden to Secretary, Securities and Exchange Commission, 100 F Street, NE, Washington, DC 20549. The OMB has reviewed this collection of information under the clearance requirements of 44 U.S.C. § 3507.
| Item 1. | Reports to Stockholders. |
The Report to Shareholders is attached herewith.
Table of Contents
Management Discussion of Performance | ||
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Fund Summary | ||
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Schedules of Portfolio Investments | ||
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Letter from the President and the Investment Advisor
Dear Shareholders:
We are pleased to present this annual report for the 12-month period ended September 30, 2008. Economic growth slowed considerably during the period as a result of problems in the housing and credit markets. Stocks were volatile during the period while bonds performed relatively well. The S&P 500 returned (21.96%); the Russell 2000 Index of small-capitalization stocks returned (14.48%); the MSCI EAFE Index of international stocks returned (32.48%); and the Barclays Capital Aggregate Bond Index (formally known as the Lehman Brothers Aggregate Bond Index) returned 3.65%.
A challenging economic environment.
The U.S. economy faced a number of different challenges during the period, from a precipitous decline in housing prices to weakening employment numbers. These issues were compounded by continued fallout from the collapse of the subprime mortgage market and the high-profile failures of some Wall Street investment banks, which resulted in a credit crunch.
Early in the period we believed the U.S. economy would avoid a recession as long as jobs were available, but unemployment numbers continued to rise as the credit crisis deepened. In fact, GDP contracted during the third quarter of 2008. In hopes of boosting liquidity in the financial markets and jumpstarting the economy, the Federal Reserve Board lowered its target federal funds rate from 4.75% to 2.00% during the period.
Economic problems weaken stocks.
Equities posted significant losses in the 12 months through September. Investors early in the period sought relatively safe areas of the stock market as concerns remained about the health of the economy. The market then rallied in spring, buoyed by the rescue of investment bank Bear Stearns in March and the Fed’s series of rate cuts. That rally ended by July, when stock prices were pummeled as inflation fears escalated and unemployment figures continued to rise.
Consumer staples stocks led the market, as investors were attracted to their relative stability. Rising commodity prices boosted energy and materials stocks for much of the period. High prices and the economic slowdown depressed demand late in the period, however, causing such stocks to perform poorly during the three months through September.
Financial stocks suffered from the effects of the subprime mortgage crisis and the resulting credit crunch. Consumer discretionary stocks also lagged the market on concerns about weaker consumer spending.
The U.S. economy’s problems spread to international economies. As a result, foreign stocks posted losses in line with the domestic market during the period.
Investors flee to bonds
High-quality corporate and agency bonds outperformed Treasury bonds early in the period. This trend shifted as the economy and financial markets struggled. Treasury bonds proved to be the best-performing sector in the fixed-income markets for the fiscal year, as investors favored the highest-quality, most-liquid securities.
The yield curve steepened considerably as the prospect of additional Fed easing escalated. Yields on short-term issues fell farther than those on long-term issues, as investors sought relief in the relative safety of short-term Treasury bonds.
Our perspective
We expect the U.S. economy to continue its sluggish performance in the coming months, and remain in recession as a result of the continued housing crisis, credit crunch and deleveraging of corporate balance sheets. Foreign economies also are likely to continue slowing, and some European countries already have entered into recession.
Lower interest rates and commodity prices, combined with efforts by the federal government, eventually should help stabilize the housing and financial markets, ultimately encouraging investors to re-enter the equity market. That said, we expect stocks to continue to be quite volatile in the coming months. A number of our mutual funds are outperforming their benchmarks as BB&T Asset Management’s focus on quality and fundamentally driven, rigorous investment processes continued to add value during the period.
Thank you for your confidence in the BB&T Funds. We encourage you to call us at 1-800-228-1872 with any questions.
Sincerely,
/s/ E.G. Purcell, III |
E.G. Purcell, III President BB&T Funds |
/s/ Jeffrey J. Schappe |
Jeffrey J. Schappe, CFA Chief Investment Officer BB&T Asset Management, Inc. |
Past performance does not guarantee future results.
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 (each a “Fund” and collectively, the “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 currently are distributed by BB&T AM Distributors, 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
Portfolio Manager
Ronald T. Rimkus, CFA
The BB&T Large Cap Fund is managed by Ronald T. Rimkus, a chartered financial analyst and Director of Core Equity at BB&T Asset Management, Inc. Mr. Rimkus has more than 15 years of investment experience, including hands-on management of both growth and value equity portfolios. Most recently, he spent six years overseeing large-company core equity portfolios. Mr. Rimkus holds a BA from Brown University and an MBA from UCLA. He is supported by the BB&T Large Cap Core Equity Portfolio Management Team.
Investment Concerns
Equity securities (stocks) are more volatile and carry more risk than other forms of investments, including investments in high-grade fixed income securities. The net asset value per share of this Fund will fluctuate as the value of the securities in the portfolio changes. Value-based investments are subject to the risk that the broad market may not recognize their intrinsic value.
Q. How did the Fund perform during the 12-month period between October 1, 2007 and September 30, 2008?
A. The Fund returned (29.32%) (Institutional Shares). That compared to a (21.96%) return for its benchmark, the S&P 500 Index.
Q. What factors affected the Fund’s performance?
A. The 12-month period was marred by the commodity crisis, the credit crisis and the housing crisis – each of which influenced the others. As oil prices and other commodity prices escalated throughout the year, we became increasingly concerned about the sustainability of demand and shifted our portfolio away from commodity stocks. This cautious position harmed our relative performance for much of this fiscal year. We also became more cautious with companies that have significant operating leverage, because a recession would likely cut sharply into such firms’ bottom lines. Shares of consumer staple stocks, health care stocks and select financial stocks added to the Fund’s absolute performance, while the financial and commodities sectors as a whole reduced the Fund’s performance.1
This Fund seeks to invest in inexpensively valued shares of companies that have sustainable competitive advantages, good management and strong returns on invested capital. That approach led us to hold an overweight position in consumer staples stocks, including shares of food companies. That positioning helped relative performance as investors were drawn to the stability of companies in this sector. Stock selection among consumer discretionary stocks also boosted performance against the benchmark.1
The Fund also held an underweight position in the energy and utilities sectors relative to its benchmark. That positioning dragged on the Fund’s performance for much of this fiscal year.1
The Fund encountered mixed results with its holdings in the financial services sector. Two of the Fund’s biggest positive contributions were from shares of financial firms that remained both solvent and liquid while large segments of the financial services industry struggled with solvency, liquidity or both. But the Fund’s overall performance was hurt by its holdings in the financial services sector as many firms suffered from the continued fallout in the credit markets.1
1 | Portfolio composition is as of September 30, 2008 and is subject to change. |
2
Value of a $10,000 Investment
| * | Reflects 5.75% maximum sales charge. |
| ** | Reflects the applicable contingent deferred sales charge (CDSC), maximum of 5.00%. |
| *** | Reflects the applicable maximum CDSC of 1.00% (applicable only to redemptions within one year of purchase, and as such, are not reflected in the Total Return tables since the periods reflected are for a year or longer). |
Average Annual Total Returns
As of September 30, 2008 | Inception Date | 1 Year | 5 Years | 10 Years | ||||||||
Class A Shares* | 10/9/92 | (33.52 | )% | 2.88 | % | 2.04 | % | |||||
Class B Shares** | 1/1/96 | (32.33 | )% | 3.20 | % | 2.02 | % | |||||
Class C Shares*** | 2/1/01 | 1 | (30.00 | )% | 3.34 | % | 2.05 | % | ||||
Institutional Shares | 10/9/92 | (29.32 | )% | 4.37 | % | 2.90 | % | |||||
S&P 500 Index | N/A | (21.96 | )% | 5.17 | % | 3.06 | % |
Past performance does not guarantee future results. The performance data quoted represents past performance and current returns may be lower or higher. Total return figures include change in share price, reinvestment of dividends and capital gains, and do not reflect taxes that a shareholder would pay on fund distributions or on the redemption of fund shares. The investment return and principal value will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than the original cost. To obtain performance information current to the most recent month end, please visit www.bbtfunds.com.
The chart above represents a comparison of a hypothetical $10,000 investment in the indicated share class versus a similar investment in the Fund’s benchmark, and represents the reinvestment of dividends and capital gains.
1 | Class C Shares were not in existence prior to 2/1/01. Performance for periods prior to that is based on the historical performance of the Class A Shares, and has been adjusted for the maximum CDSC applicable to Class C Shares, but does not include the Class C Shares 12b-1 fees, which, if reflected, performance would have been lower. |
The S&P 500 Index is generally considered to be representative of the performance of the stock market as a whole. The index is unmanaged and does not reflect the deduction of expenses associated with a mutual fund, such as investment management and fund accounting fees. The Fund’s performance reflects the deduction of fees for these services. Investors cannot invest directly in an index, although they can invest in its underlying securities.
A portion of the Fund’s fees has been waived. If the fees had not been waived, the Fund’s total return for the periods would have been lower.
3
Portfolio Manager
Timothy P. Beyer, CFA
The BB&T Mid Cap Value Fund is managed by Timothy P. Beyer, CFA, portfolio manager for Sterling Capital Management LLC (“Sterling”), sub-adviser to the Fund. Mr. Beyer, who joined Sterling in 2004, is a graduate of East Carolina University, where he received his BSBA in Finance, and has 19 years of investment management experience. Mr. Beyer is supported by Eduardo Brea, CFA; Robert Bridges, CFA; Lee D. Houser, CFA; Patrick W. Rau, CFA; and Brian Walton, CFA.
Investment Concerns
Mid-capitalization funds typically carry additional risks since smaller companies generally have a higher risk of failure, and historically, their stocks have experienced a greater degree of market volatility than stocks on average.
Equity securities (stocks) are more volatile and carry more risk than other forms of investments, including investments in high-grade fixed income securities. The net asset value per share of this Fund will fluctuate as the value of the securities in the portfolio changes. Value-based investments are subject to the risk that the broad market may not recognize their intrinsic value.
Q. How did the Fund perform during the 12-month period between October 1, 2007 and September 30, 2008?
A. The Fund posted a return of (21.87%) (Institutional Shares). That compared to a (20.50%) return for its benchmark, the Russell Midcap® Value Index.
Q. What factors affected the Fund’s performance?
A. Most stocks generally posted losses during the period, contributing to the Fund’s negative absolute return for the fiscal year.1
At the beginning of the period, we emphasized defensive positions in high-quality consumer and financials stocks. These stocks traded at prices that appeared attractive at any point in the economic cycle. As the fiscal year went on, we began to shift our investment strategy to include more offensive holdings that would take advantage of turbulence in the financial markets. We sought out high-quality shares that were undervalued in the overall market sell-off.1
The Fund held relatively little exposure to energy, global industrials and commodities-related stocks during the fiscal year, because we believed shares in those sectors generally offered little value and inferior long-term secular growth and return characteristics. Energy and commodities stocks performed well for the period as a whole, however, so the Fund’s underweight positions weighed on relative performance.1
As consumer spending slowed during the period, the Fund’s overweight position in consumer stocks weighed on relative returns. These companies are primarily in media, advertising, and retailing industries that, while representing attractive long-term value, are cyclically out of favor.1
The Fund’s overweight position in the healthcare sector increased returns relative to the benchmark index. Overall, the Fund’s healthcare shares gained approximately 7% during the period.1
The Fund’s defensive position in certain technology stocks — those that provide critical information technology products and services to business — also boosted relative performance.1
1 | Portfolio composition is as of September 30, 2008 and is subject to change. |
4
Value of a $10,000 Investment
| * | Reflects 5.75% maximum sales charge. |
| ** | Reflects the applicable contingent deferred sales charge (CDSC), maximum of 5.00%. |
| *** | Reflects the applicable maximum CDSC of 1.00% (applicable only to redemptions within one year of purchase, and as such, are not reflected in the Total Return tables since the periods reflected are for a year or longer). |
Average Annual Total Returns
As of September 30, 2008 | Inception Date | 1 Year | 5 Years | 10 Years | ||||||||
Class A Shares* | 8/1/96 | 1 | (26.48 | )% | 7.06 | % | 6.68 | % | ||||
Class B Shares** | 7/25/01 | 1 | (25.38 | )% | 7.43 | % | 6.72 | % | ||||
Class C Shares*** | 7/25/01 | 1 | (22.59 | )% | 7.54 | % | 6.71 | % | ||||
Institutional Shares | 8/1/96 | 1 | (21.87 | )% | 8.60 | % | 7.58 | % | ||||
Russell Midcap® Value Index | N/A | (20.50 | )% | 9.97 | % | 9.19 | % |
Past performance does not guarantee future results. The performance data quoted represents past performance and current returns may be lower or higher. Total return figures include change in share price, reinvestment of dividends and capital gains, and do not reflect taxes that a shareholder would pay on fund distributions or on the redemption of fund shares. The investment return and principal value will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than the original cost. To obtain performance information current to the most recent month end, please visit www.bbtfunds.com.
The chart above represents a comparison of a hypothetical $10,000 investment in the indicated share class versus a similar investment in the Fund’s benchmark, and represents the reinvestment of dividends and capital gains.
1 | Performance shown for Class A and Institutional Shares includes the performance of the OVB Equity Income Portfolio for the periods prior to its consolidation with the BB&T Mid Cap Value Fund on 7/23/01. The performance shown reflects reinvestment of all dividend and capital gains distributions. Class B and C Shares were not in existence prior to 7/25/01. Performance for periods prior to 7/25/01 is based on the historical performance of the Class A Shares, and has been adjusted for the maximum CDSC applicable to Class B and C Shares, respectively, but such performance does not reflect Class B and C Shares’ 12b-1 fees and expenses. With those adjustments, performance would be lower than that shown. |
The Fund is measured against the Russell Midcap® Value Index, an unmanaged index which measures the performance of those securities in the Russell 1000 with lower price-to-book ratios or lower forecasted growth values. The index is unmanaged and does not reflect the deduction of expenses associated with a mutual fund, such as investment management and fund accounting fees. The Fund’s performance reflects the deduction of fees for these services. Investors cannot invest directly in an index, although they can invest in its underlying securities.
A portion of the Fund’s fees has been waived. If fees had not been waived, the Fund’s total return for the periods would have been lower.
5
Portfolio Manager
David P. Nolan
The BB&T Mid Cap Growth Fund is managed by David P. Nolan. A graduate of Wake Forest University, where he received a BS in Business, Mr. Nolan managed common and collective trust funds from 1985 to 1993 and has managed the Mid Cap Growth Fund since its inception in 1993.
Investment Concerns
Mid-capitalization funds typically carry additional risks since smaller companies generally have a higher risk of failure, and historically, their stocks have experienced a greater degree of market volatility than stocks on average.
Equity securities (stocks) are more volatile and carry more risk than other forms of investments, including investments in high-grade fixed income securities. The net asset value per share of this Fund will fluctuate as the value of the securities in the portfolio changes.
Q. How did the Fund perform during the 12-month period between October 1, 2007 and September 30, 2008?
A. The Fund returned (28.12%) (Institutional Shares). That compared to a (24.65%) return for its benchmark, the Russell Midcap® Growth Index.
Q. What factors affected the Fund’s performance?
A. Medium-sized stocks — along with the rest of the market — performed poorly during the period under review, contributing to the Fund’s negative returns. Poor returns from the high-growth firms in which the Fund seeks to invest particularly contributed to the Fund’s underperformance.1
The Fund outperformed the benchmark through the end of the fiscal third quarter, but market turmoil during the fourth quarter caused many of the stocks in our portfolio to post losses, thereby underperforming the benchmark for the fiscal period. As fallout from the credit crisis spread in September, investors generally lost confidence in the projected growth rates of high-growth firms. The Fund generally seeks stocks that have higher growth rates than the benchmark index average. During the fourth quarter, the Fund’s holdings had an average projected growth rate in the mid-to-upper 20% range. High-growth shares within the benchmark index returned (31%), however, compared to the (11%) returned by low-growth shares during the quarter. 1
The Fund’s overweight position in energy shares contributed to its underperformance for the period. Oil prices reversed aggressively in the fourth quarter, causing energy stocks to plummet. Stock selection in energy firms also dragged on returns, with an energy production services firm the top detractor to performance during the period. Other detractors to performance included a global technology networking firm, a global investment management firm and an out-of-home advertising network operating in China.1
Top contributors to performance included a global payment solutions company, an online and console game publisher, a manufacturer and distributor of fertilizer and a global apparel firm.1
1 | Portfolio composition is as of September 30, 2008 and is subject to change. |
6
Value of a $10,000 Investment
| * | Reflects 5.75% maximum sales charge. |
| ** | Reflects the applicable contingent deferred sales charge (CDSC), maximum of 5.00%. |
| *** | Reflects the applicable maximum CDSC of 1.00% (applicable only to redemptions within one year of purchase, and as such, are not reflected in the Total Return tables since the periods reflected are for a year or longer). |
Average Annual Total Returns
As of September 30, 2008 | Inception Date | 1 Year | 5 Years | 10 Years | ||||||||
Class A Shares* | 12/30/93 | 1 | (32.47 | )% | 5.52 | % | 4.10 | % | ||||
Class B Shares** | 7/25/01 | 1 | (31.44 | )% | 5.85 | % | 4.17 | % | ||||
Class C Shares*** | 7/25/01 | 1 | (28.82 | )% | 6.00 | % | 4.18 | % | ||||
Institutional Shares | 12/1/93 | 1 | (28.12 | )% | 7.06 | % | 4.99 | % | ||||
Russell Midcap® Growth Index | N/A | (24.65 | )% | 6.53 | % | 5.51 | % |
Past performance does not guarantee future results. The performance data quoted represents past performance and current returns may be lower or higher. Total return figures include change in share price, reinvestment of dividends and capital gains and do not reflect taxes that a shareholder would pay on fund distributions or on the redemption of fund shares. The investment return and principal value will fluctuate so that an investor’s shares, when redeemed may be worth more or less than the original cost. To obtain performance information current to the most recent month end, please visit www.bbtfunds.com.
The chart above represents a comparison of a hypothetical $10,000 investment in the indicated share class versus a similar investment in the Fund’s benchmark, and represents the reinvestment of dividends and capital gains.
1 | Fund performance as shown for Class A and Institutional Shares includes the performance of the OVB Capital Appreciation Portfolio for the periods prior to its consolidation with the BB&T Mid Cap Growth Fund on 7/23/01. The performance shown reflects reinvestment of all dividend and capital gains distributions. The Class B and C Shares were not in existence prior to 7/25/01. Performance for periods prior to 7/25/01 is based on the historical performance of the Class A Shares and has been adjusted for the maximum CDSC applicable to Class B and C Shares, respectively, but such performance does not reflect Class B and C Shares’ 12b-1 fees and expenses. With those adjustments, performance would be lower. |
The Fund is measured against the Russell Midcap® Growth Index, an unmanaged index which measures the performance of those securities in the Russell 1000® Index with higher price-to-book ratios and lower forecasted growth values. The index does not reflect the deduction of expenses associated with a mutual fund, such as investment management and fund accounting fees. The Fund’s performance reflects the deduction of fees for services. Investors cannot invest directly in an index, although they can invest in its underlying securities.
A portion of the Fund’s fees has been waived. If the fees had not been waived, the Fund’s total returns for the periods would have been lower.
7
Portfolio Manager
David P. Nolan
The BB&T Small Cap Fund is managed by David P. Nolan. A graduate of Wake Forest University, where he received a BS in Business, Mr. Nolan managed common and collective trust funds from 1985 to 1993. He is supported by the BB&T Small Cap Portfolio Management Team, which includes Brian Baker.
Investment Concerns
Small-capitalization funds typically carry additional risks since smaller companies generally have a higher risk of failure, and historically, their stocks have experienced a greater degree of market volatility than stocks on average.
Equity securities (stocks) are more volatile and carry more risk than other forms of investments, including investments in high-grade fixed income securities. The net asset value per share of this Fund will fluctuate as the value of the securities in the portfolio changes. Value-based investments are subject to the risk that the broad market may not recognize their intrinsic value.
Diversification does not guarantee a profit nor protect against a loss.
Q. How did the Fund perform during the 12-month period between October 1, 2007 and September 30, 2008?
A. The Fund posted a returned of (16.60%) (Institutional Shares). That compared to a (14.48%) return for its benchmark, the Russell 2000® Index of small-cap stocks.
Q. What factors affected the Fund’s performance?
A. The generally poor environment for small stocks significantly influenced the Fund’s negative returns during the period. Shares of certain healthcare and consumer discretionary companies posted gains, but they could not offset losses in other sectors, particularly technology and industrials. Top contributors to performance throughout the period included shares of an energy exploration services firm, a pharmaceutical services firm, a diversified transportation holding company and a global apparel firm.1
The fourth quarter of the fiscal year proved especially challenging, as the Fund’s overweight position in energy relative to the benchmark index dragged on returns. That position had provided a significant boon to performance through the third fiscal quarter. But energy shares plummeted in the fourth quarter as oil prices reversed dramatically in the fourth quarter. As a result, our overweight position hurt the Fund’s year-long relative returns.1
The Fund’s underweight position in financial stocks also dragged on returns, particularly in the fourth fiscal quarter. The Fund typically holds a smaller percentage of financials shares than the benchmark index, since few small-cap financials stocks meet our criteria for growth. Financials represent less than 10% of the Fund’s portfolio, while the benchmark index holds more than double that amount. Shares of small-cap banks and other financials firms gained during the fourth quarter, so the Fund’s underweight position contributed significantly to its relative underperformance.1
Several technology companies were the top detractors from relative performance during the period. Poor performance by a software and hardware manufacturing and licensing firm weighed on returns, as did shares of a firm that develops and sells networking products to home users and small businesses. Other detractors from performance included a small-cap index fund and a firm that develops and sells power management products to the consumer, communications and industrial markets.1
1 | Portfolio composition is as of September 30, 2008 and is subject to change. |
8
Value of a $10,000 Investment
| * | Reflects 5.75% maximum sales charge. |
| ** | Reflects the applicable contingent deferred sales charge (CDSC), maximum of 5.00%. |
| *** | Reflects the applicable maximum CDSC of 1.00% (applicable only to redemptions within one year of purchase, and as such, are not reflected in the Total Return tables since the periods reflected are for a year or longer). |
Average Annual Total Returns
As of September 30, 2008 | Inception Date | 1 Year | 5 Year | Since Inception | |||||||
Class A Shares* | 5/19/03 | (21.58 | )% | 5.77 | % | 8.05 | % | ||||
Class B Shares** | 5/19/03 | (20.43 | )% | 6.10 | % | 8.30 | % | ||||
Class C Shares*** | 5/19/03 | (17.44 | )% | 6.23 | % | 8.40 | % | ||||
Institutional Shares | 5/19/03 | (16.60 | )% | 7.31 | % | 9.51 | % | ||||
Russell 2000® Index | 5/31/03 | (14.48 | )% | 8.15 | % | 9.76 | % |
Past performance does not guarantee future results. The performance data quoted represents past performance and current returns may be lower or higher. Total return figures include change in share price, reinvestment of dividends and capital gains, and do not reflect taxes that a shareholder would pay on fund distributions or on the redemption of fund shares. The investment return and principal value will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than the original cost. To obtain performance information current to the most recent month end, please visit www.bbtfunds.com.
The chart above represents a comparison of a hypothetical $10,000 investment in the indicated share class versus a similar investment in the Fund’s benchmark, and represents the reinvestment of dividends and capital gains.
The Russell 2000® Index is a widely recognized index of common stocks that measure the performance of small- to mid-sized companies. The index is unmanaged and does not reflect the deduction of expenses associated with a mutual fund, such as investment management and fund accounting fees. The Fund’s performance reflects the deduction of fees for these services. Investors cannot invest directly in an index, although they can invest in its underlying securities.
A portion of the Fund’s fees has been waived. If the fees had not been waived, the Fund’s total return for the periods would have been lower.
9
BB&T International Equity Fund
Portfolio Manager
Rudolph-Riad Younes, CFA
The BB&T International Equity Fund is managed by Rudolph-Riad Younes, CFA, Senior Vice President and Head of International Equity at Artio Global Management LLC (“Artio Global”) (previously known as Julius Baer Investment Management LLC ) since August 2000, and with the predecessor organization Julius Baer Group since September 1993, and Richard Pell, Chief Investment Officer and Senior Vice President with Artio Global since August 2000, and with the predecessor organization Julius Baer Group since January 1995.
Investment Concerns
There are risks associated with investing in foreign companies, such as erratic market conditions, economic and political instability and fluctuations in currency and exchange rates.
Equity securities (stocks) are more volatile and carry more risk than other forms of investments, including investments in high-grade fixed income securities. The net asset value per share of this Fund will fluctuate as the value of the securities in the portfolio changes.
Q. How did the Fund perform during the 12-month period between October 1, 2007 and September 30, 2008?
A. The Fund returned (30.65%) (Institutional Shares). That compared to a (32.16%) return for its benchmark, the MSCI All Country World Index ex U.S.
Q. What factors affected the Fund’s performance?
A. The fiscal year began with much of the same strong growth witnessed for almost a decade. But global equity markets began to exhibit signs of stress early in 2008 when problems caused by the subprime mortgage meltdown started to become more apparent. By the end of the 12 months under review credit markets were frozen and investors rushed to buy short-term Treasuries. That environment led to sizable losses among international stocks, contributing to a negative absolute return for the Fund.1
Stocks in the materials sector had the largest positive contribution to returns. The Fund benefited from strong performance early in the period among shares of companies involved in the production of agricultural chemicals. We trimmed exposure to commodities stocks during the last quarter of the fiscal year, particularly in emerging markets such as Russia. This move boosted relative performance, as prices of raw materials came under pressure and hurt commodities stocks.1
Stock selection in the financials sector hindered performance against the benchmark, despite the positive effect of an underweight position. Stock selection in utilities and industrials stocks also detracted from relative performance.1
From a geographic perspective, emerging markets weighed on performance, largely due to the Fund’s holdings in India. We scaled back exposure to Indian stocks during the period, to limit negative impacts from investors’ flight to quality. Stock selection and an underweight stake in Japan also reduced relative returns.1
1 | Portfolio composition is as of September 30, 2008 and is subject to change. |
10
Value of a $10,000 Investment
| * | Reflects 5.75% maximum sales charge. |
| ** | Reflects the applicable contingent deferred sales charge (CDSC), maximum of 5.00%. |
| *** | Reflects the applicable maximum CDSC of 1.00% (applicable only to redemptions within one year of purchase, and as such, are not reflected in the Total Return tables since the periods reflected are for a year or longer). |
Average Annual Total Returns
As of September 30, 2008 | Inception Date | 1 Year | 5 Years | 10 Years | ||||||||
Class A Shares* | 1/2/97 | (34.77 | )% | 5.48 | % | 1.57 | % | |||||
Class B Shares** | 1/2/97 | (33.82 | )% | 5.84 | % | 1.55 | % | |||||
Class C Shares*** | 2/1/01 | 1 | (31.30 | )% | 5.93 | % | 1.41 | % | ||||
Institutional Shares | 1/2/97 | (30.65 | )% | 6.97 | % | 2.39 | % | |||||
MSCI All Country World Index ex U.S. | 12/31/96 | (32.16 | )% | 8.76 | % | 4.32 | % |
Past performance does not guarantee future results. The performance data quoted represents past performance and current returns may be lower or higher. Total return figures include change in share price, reinvestment of dividends and capital gains, and do not reflect taxes that a shareholder would pay on fund distributions or on the redemption of fund shares. The investment return and principal value will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than the original cost. To obtain performance information current to the most recent month end, please visit www.bbtfunds.com.
The chart above represents a comparison of a hypothetical $10,000 investment in the indicated share class versus a similar investment in the Fund’s benchmark, and represents the reinvestment of dividends and capital gains.
1 | Class C Shares were not in existence prior to 2/1/01. Performance for periods prior to that is based on the historical performance of the Class B Shares, and has been adjusted for the maximum CDSC applicable to Class C Shares. |
The MSCI All Country World Index ex U.S. Index is a unmanaged market capitalization-weighted index that is designed to represent the performance of equity markets in the global developed and emerging markets, excluding the United States. The index does not reflect the deduction of expenses associated with a mutual fund, such as investment management and fund accounting fees. The Fund’s performance reflects the deduction of fees for these services. Investors cannot invest directly in an index, although they can invest in its underlying securities.
A portion of the Fund’s fees has been waived. If the fees had not been waived, the Fund’s total return for the periods would have been lower.
11
BB&T Special Opportunities Equity Fund
Portfolio Manager
George F. Shipp, CFA
The BB&T Special Opportunities Equity Fund is managed by George F. Shipp, CFA, chief investment officer of Scott & Stringfellow, Inc. (“Scott & Stringfellow”), subadvisor to the Fund. Mr. Shipp, who joined Scott & Stringfellow in 1982, holds a BA from the University of Virginia and an MBA from the Darden Graduate School of Business at the University of Virginia. Mr. Shipp is supported by an investment management team from Scott & Stringfellow, which includes Meghann A. Cohen; Joshua L. Haggarty, CFA; R. Griffith Jones, Jr.; and Farley C. Shiner, CPA. The team brings to the Fund more than four decades of combined investment management experience, along with a broad range of investing skills.
Investment Concerns
Equity securities (stocks) are more volatile and carry more risk than other forms of investments, including investments in high-grade fixed income securities. The net asset value per share of this Fund will fluctuate as the value of the securities in the portfolio changes. A concentrated portfolio may add a measure of volatility to performance, as major fluctuations in any one holding will likely affect the fund more than a fund with greater diversification.
Q. How did the Fund perform during the 12-month period between October 1, 2007 and September 30, 2008?
A. The Fund returned (12.35%) (Institutional Shares). That compared to a (21.96%) return for its benchmark, the S&P 500 Index.
Q. What factors affected the Fund’s performance?
A. Concerns about a global economic slowdown and credit availability stung stocks over the 12-month period ending September 30. While the Fund was not immune from those factors, sector and security selection enabled the Fund to outperform the S&P 500 Index for the period under review.1
The Fund held overweight positions in healthcare and energy shares, which boosted its performance relative to the benchmark. Within those sectors, a generic pharmaceutical company and an energy-services company produced above-average returns. The Fund also benefited from its minimal exposure to the benchmark’s worst-performing sectors during the period: financials, industrials and telecommunications. Among the Fund’s few financial holdings was one of the nation’s best-performing bank stocks.1
1 | Portfolio composition is as of September 30, 2008 and is subject to change. |
12
Value of a $10,000 Investment
| * | Reflects 5.75% maximum sales charge. |
| ** | Reflects the applicable contingent deferred sales charge (CDSC), maximum of 5.00%. |
| *** | Reflects the applicable maximum CDSC of 1.00% (applicable only to redemptions within one year of purchase, and as such, are not reflected in the Total Return tables since the periods reflected are for a year or longer). |
Average Annual Total Returns
As of September 30, 2008 | Inception Date | 1 Year | 5 Year | Since Inception | |||||||
Class A Shares* | 6/2/03 | (17.66 | )% | 10.94 | % | 11.30 | % | ||||
Class B Shares** | 6/2/03 | (16.61 | )% | 11.29 | % | 11.58 | % | ||||
Class C Shares*** | 6/2/03 | (13.27 | )% | 11.43 | % | 11.71 | % | ||||
Institutional Shares | 6/2/03 | (12.35 | )% | 12.57 | % | 12.84 | % | ||||
S&P 500 Index | 5/31/03 | (21.96 | )% | 5.17 | % | 5.60 | % |
Past performance does not guarantee future results. The performance data quoted represents past performance and current returns may be lower or higher. Total return figures include change in share price, reinvestment of dividends and capital gains, and do not reflect taxes that a shareholder would pay on fund distributions or on the redemption of fund shares. The investment return and principal value will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than the original cost. To obtain performance information current to the most recent month end, please visit www.bbtfunds.com.
The chart above represents a comparison of a hypothetical $10,000 investment in the indicated share class versus a similar investment in the Fund’s benchmark and represents the reinvestment of dividends and capital gains.
The Fund is measured against the S&P 500 Index, an unmanaged index which is generally considered to be representative of the performance of the stock market as a whole. The index does not reflect the deduction of expenses associated with a mutual fund, such as investment management and fund accounting fees. The Fund’s performance reflects the deduction of fees for these services. Investors cannot invest directly in an index, although they can invest in its underlying securities.
A portion of the Fund’s fees has been waived. If the fees had not been waived, the Fund’s total return for the periods would have been lower.
13
Portfolio Manager
George F. Shipp, CFA
The BB&T Equity Income Fund is managed by George F. Shipp, CFA, Chief Investment Officer of Scott & Stringfellow, Inc. (“Scott & Stringfellow”), subadvisor to the Fund. Mr. Shipp, who joined Scott & Stringfellow in 1982, holds a BA from the University of Virginia and an MBA from the Darden Graduate School of Business at the University of Virginia. Mr. Shipp is supported by an investment management team from Scott & Stringfellow, which includes Meghann A. Cohen; Joshua L. Haggarty, CFA; R. Griffith Jones, Jr.; and Farley C. Shiner, CPA. The team brings to the Fund more than four decades of combined investment management experience, along with a broad range of investing skills.
Investment Concerns
Equity securities (stocks) are more volatile and carry more risk than other forms of investments, including investments in high-grade fixed income securities. The net asset value per share of this Fund will fluctuate as the value of the securities in the portfolio changes. A concentrated portfolio may add a measure of volatility to performance, as major fluctuations in any one holding will likely affect the fund more than a fund with greater diversification.
Q. How did the Fund perform during the 12-month period between October 1, 2007 and September 30, 2008?
A. The Fund returned (12.24%) (Institutional Shares). That compared to a (21.96%) return for its benchmark, the S&P 500 Index.
Q. What factors affected the Fund’s performance?
A. Concerns about a global economic slowdown and credit availability stung stocks over the 12-month period ending September 30. While the Fund was not immune from those factors, sector and security selection enabled the Fund to outperform the S&P 500 for the period under review.1
This Fund invests in stocks that offer above-average dividend yields. While many high-yielding stocks fared poorly over the 12-month period, the Fund benefited from underweighting the high-yielding financial sector. Individual security selection also provided a benefit to the Fund, as it profited from owning one of the best-performing regional bank stocks and one of the best-performing pharmaceutical stocks. The Fund received positive contributions from an energy pipeline company and a branded consumer foods manufacturer. Detracting most from the Fund’s performance was holdings in a large mobile phone company.1
1 | Portfolio composition is as of September 30, 2008 and is subject to change. |
14
Value of a $10,000 Investment
| * | Reflects 5.75% maximum sales charge. |
| ** | Reflects the applicable contingent deferred sales charge (CDSC), maximum of 5.00%. |
| *** | Reflects the applicable maximum CDSC of 1.00% (applicable only to redemptions within one year of purchase, and as such, are not reflected in the Total Return tables since the periods reflected are for a year or longer). |
Average Annual Total Returns
As of September 30, 2008 | Inception Date | 1 Year | Since Inception | |||||
Class A Shares* | 6/30/04 | (17.52 | )% | 8.84 | % | |||
Class B Shares** | 6/30/04 | (16.43 | )% | 9.19 | % | |||
Class C Shares*** | 6/30/04 | (13.07 | )% | 9.55 | % | |||
Institutional Shares | 6/30/04 | (12.24 | )% | 10.65 | % | |||
S&P 500 Index | 6/30/04 | (21.96 | )% | 2.46 | % |
Past performance does not guarantee future results. The performance data quoted represents past performance and current returns may be lower or higher. Total return figures include change in share price, reinvestment of dividends and capital gains, and do not reflect taxes that a shareholder would pay on fund distributions or on the redemption of fund shares. The investment return and principal value will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than the original cost. To obtain performance information current to the most recent month end, please visit www.bbtfunds.com.
The chart above represents a comparison of a hypothetical $10,000 investment in the indicated share class versus a similar investment in the Fund’s benchmark, and represents the reinvestment of dividends and capital gains.
The Fund is measured against the S&P 500 Index, an unmanaged index which is generally considered to be representative of the performance of the stock market as a whole. The index does not reflect the deduction of expenses associated with a mutual fund, such as investment management and fund accounting fees. The Fund’s performance reflects the deduction of fees for these services. Investors cannot invest directly in an index, although they can invest in its underlying securities.
A portion of the Fund’s fees has been waived. If the fees had not been waived, the Fund’s total return for the periods would have been lower.
15
BB&T Short U.S. Government Fund
Portfolio Manager
Kevin E. McNair, CFA
The BB&T Short U.S. Government Fund is managed by Kevin E. McNair, CFA. Mr. McNair received a BA in Economics from the University of North Carolina-Chapel Hill and a Master’s of Economics from North Carolina State University, and has been managing investors’ money since 1994. Mr. McNair is supported by the BB&T Fixed Income Portfolio Management Team, which includes Carrie R. Breswitz; Brad D. Eppard, CFA; David T. Johnson; Robert F. Millikan, CFA; and Justin B. Nicholson. The team brings to the Fund six decades of combined investment management experience, along with a broad range of specialized skills encompassing a cross-section of fixed-income sectors.
Investment Concerns
Bonds offer a relatively stable level of income, although bond prices will fluctuate providing the potential for principal gain or loss. Intermediate-term, higher-quality bonds generally offer less risk than longer-term bonds and a lower rate of return.
The Fund is subject to the risk that principal value reacts in opposition to the movement of interests rates and that a rising interest rate environment increases the risk of loss of principal.
Q. How did the Fund perform during the 12-month period between October 1, 2007 and September 30, 2008?
A. The Fund gained 4.38% (Institutional Shares). That compared to a 6.76% return for its benchmark, the Merrill Lynch 1-5 Year U.S. Treasuries/Agencies Index.
Q. What factors affected the Fund’s performance?
A. Investors during the period fled to high-quality securities due to increased volatility in the financial markets and mounting concerns about the health of the economy. As a result of that shift, Treasury securities were the top performing asset class during the timeframe.1
Yields on short-term bonds fell during the period as investors’ flight to quality pushed demand higher for short-term securities. That trend resulted in a steepening yield curve during the period. Three-month Treasury bonds, which yielded 3.90% at the beginning of the 12-month period, offered yields of just 0.90% by the end of the period. Since bond prices move in the opposite direction of bond yields, the Fund’s total return benefited in absolute terms from the pressure on short-term bond yields. But the Fund’s average duration was shorter than that of the Fund’s benchmark, which ultimately hampered relative performance as the benchmark was able to benefit from higher price appreciation because of its greater sensitivity to yield changes. 1
The Fund’s performance was negatively affected by its underweight position relative to its benchmark in Treasury securities, which posted strong gains during the period. The Fund allocated more than two-thirds of its assets to agency and mortgage-backed bonds, which typically offer higher yields and income than Treasury bonds. Such securities underperformed Treasury bonds during the period; in large part because of questions surrounding Fannie Mae and Freddie Mac. Government intervention shored up the finances of those agencies late in the period, which helped buoy the performance of their securities.1
1 | Portfolio composition is as of September 30, 2008 and is subject to change. |
16
Value of a $10,000 Investment
| * | Reflects 3.00% maximum sales charge. |
Average Annual Total Returns
As of September 30, 2008 | Inception Date | 1 Year | 5 Years | 10 Years | |||||||
Class A Shares* | 11/30/92 | 1.15 | % | 2.09 | % | 3.27 | % | ||||
Institutional Shares | 11/30/92 | 4.38 | % | 2.96 | % | 3.83 | % | ||||
Merrill Lynch 1-5 Year U.S. Treasuries/Agencies Index | N/A | 6.76 | % | 3.72 | % | 4.81 | % |
Past performance does not guarantee future results. The performance data quoted represents past performance and current returns may be lower or higher. Total return figures include change in share price, reinvestment of dividends and capital gains, and do not reflect taxes that a shareholder would pay on fund distributions or on the redemption of fund shares. The investment return and principal value will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than the original cost. To obtain performance information current to the most recent month end, please visit www.bbtfunds.com.
The chart above represents a comparison of a hypothetical $10,000 investment in the indicated share class versus a similar investment in the Fund’s benchmark, and represents the reinvestment of dividends and capital gains.
The Fund is measured against the Merrill Lynch 1-5 Year U.S. Treasuries/Agencies Index, an unmanaged index which includes U.S. government and agency bonds that have a minimum issue size of $150 million and is a widely-recognized, capitalization weighted (companies with larger market capitalizations have more influence than those with smaller market capitalizations) index of U.S. Treasury securities with maturities of 1 year or greater and no more than 5 years. The index does not reflect the deduction of expenses associated with a mutual fund, such as investment management and fund accounting fees. The Fund’s performance reflects the deduction of fees for these services. Investors cannot invest directly in an index, although they can invest in its underlying securities.
A portion of the Fund’s fees has been waived. If the fees had not been waived, the Fund’s total return for the periods would have been lower.
17
BB&T Intermediate U.S. Government Fund
Portfolio Manager
Brad D. Eppard, CFA
The BB&T Intermediate U.S. Government Fund is managed by Brad D. Eppard, CFA. Mr. Eppard received a BS in Business Administration/ Accounting from Radford University and has been managing investors’ money since 1986. Mr. Eppard is supported by the BB&T Fixed Income Portfolio Management Team, which includes Carrie R. Breswitz; David T. Johnson; Kevin E. McNair, CFA; Robert F. Millikan, CFA; and Justin B. Nicholson. The team brings to the Fund six decades of combined investment management experience, along with a broad range of specialized skills encompassing a cross-section of fixed-income sectors.
Investment Concerns
Bonds offer a relatively stable level of income, although bond prices will fluctuate providing the potential for principal gain or loss. Intermediate-term, higher-quality bonds generally offer less risk than longer-term bonds and a lower rate of return.
The Fund is subject to the risk that principal value reacts in opposition to the movement of interests rates and that a rising interest rate environment increases the risk of loss of principal.
Q. How did the Fund perform during the 12-month period between October 1, 2007 and September 30, 2008?
A. The Fund gained 5.67% (Institutional Shares). That compared to a 7.43% return for its benchmark, the Barclays Capital U.S. Government/Mortgage Bond Index (formally known as the Lehman Brothers U.S. Government/Mortgage Bond Index).
Q. What factors affected the Fund’s performance?
A. The Federal Reserve Board cut interest rates several times during the period to combat mounting problems in the subprime mortgage market and to support a weakening economy. Meanwhile, investors concerned about the economic environment fled to safety among high-quality securities, primarily Treasury bonds. Treasuries were the top performing asset class during the period, and the Fund’s underweight position in Treasuries relative to its benchmark ultimately hampered performance.1
The Fund held an overweight position in agency securities, because we felt such bonds were shielded from significant credit risk while also offering higher yields than Treasury securities. That strategy negatively affected the Fund’s relative performance for this period, but we believe in these securities’ income potential over the long term.1
We anticipated the lowering of the Federal Funds rate, so we positioned the Fund with a duration longer than that of the benchmark. Duration indicates the likely influence of interest-rate fluctuations on bond prices: the longer a bond’s duration, the more its price is likely to increase if interest rates decline. Our duration strategy helped returns relative to the benchmark.1
We focused the Fund’s portfolio on bonds with five-year maturities. Yields fell and prices rose more on five-year Treasuries than on longer-term issues, so this strategy boosted performance against the benchmark index. The yield on the five-year Treasury bond fell by 126 basis points during the period, while the yield on a 30-year Treasury fell just 53 basis points.1
1 | Portfolio composition is as of September 30, 2008 and is subject to change. |
18
Value of a $10,000 Investment
| * | Reflects 5.75% maximum sales charge. |
| ** | Reflects the applicable contingent deferred sales charge (CDSC), maximum of 5.00%. |
| *** | Reflects the applicable maximum CDSC of 1.00% (applicable only to redemptions within one year of purchase, and as such, are not reflected in the Total Return tables since the periods reflected are for a year or longer). |
Average Annual Total Returns
As of September 30, 2008 | Inception Date | 1 Year | 5 Years | 10 Years | ||||||||
Class A Shares* | 10/9/92 | (0.79 | )% | 2.07 | % | 3.72 | % | |||||
Class B Shares** | 1/1/96 | 0.52 | % | 2.36 | % | 3.71 | % | |||||
Class C Shares*** | 2/1/01 | 1 | 4.62 | % | 2.55 | % | 3.79 | % | ||||
Institutional Shares | 10/9/92 | 5.67 | % | 3.55 | % | 4.59 | % | |||||
Barclay Capital U.S. Government/Mortgage Bond Index | N/A | 7.43 | % | 4.58 | % | 5.46 | % |
Past performance does not guarantee future results. The performance data quoted represents past performance and current returns may be lower or higher. Total return figures include change in share price, reinvestment of dividends and capital gains, and do not reflect taxes that a shareholder would pay on fund distributions or on the redemption of fund shares. The investment return and principal value will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than the original cost. To obtain performance information current to the most recent month end, please visit www.bbtfunds.com.
The chart above represents a comparison of a hypothetical $10,000 investment in the indicated share class versus a similar investment in the Fund’s benchmark and represents the reinvestment of dividends and capital gains.
1 | Class C Shares were not in existence prior to 2/1/01. Performance for periods prior to that is based on the historical performance of the Class A Shares, and has been adjusted for the maximum CDSC applicable to Class C Shares, but does not include the Class C Shares 12b-1 fees, which if reflected, would have lowered performance. |
The Fund is measured by the Barclays Capital U.S. Government/Mortgage Bond Index (formerly known as the Lehman Brothers U.S. Government/Mortgage Bond Index), an unmanaged index which is widely used as a broad measure of the performance of U.S. Government bonds with maturities of less than 10 years, and agency mortgage backed securities. The index does not reflect the deduction of expenses associated with a mutual fund, such as investment management and fund accounting fees. The Fund’s performance reflects the deduction of fees for these services. Investors cannot invest directly in an index, although they can invest in its underlying securities.
A portion of the Fund’s fees has been waived. If the fees had not been waived, the Fund’s total return for the periods would have been lower.
19
Portfolio Manager
Mark Montgomery, CFA
The BB&T Total Return Bond Fund is managed by Mark Montgomery, CFA, Managing director, Fixed Income Portfolio Manager and head of Sterling Capital Management’s fixed income team. Mr. Montgomery is supported by Richard LaCoff; Howard Buznitsky, CFA; Neil Grant, CFA; Peter Brown, CFA and Michael Mc Vicker.
Investment Concerns
Bonds offer a relatively stable level of income, although bond prices will fluctuate providing the potential for principal gain or loss. Intermediate-term, higher-quality bonds generally offer less risk than longer-term bonds and a lower rate of return.
The Fund is subject to the risk that principal value reacts in opposition to the movement of interests rates and that a rising interest rate environment increases the risk of loss of principal.
Q. How did the Fund perform during the 12-month period between October 1, 2007 and September 30, 2008?
A. The Fund gained 2.32% (Institutional Shares). That compared to a 3.65% return for its benchmark, the Barclays Capital U.S. Aggregate Bond Index (formerly known as the Lehman Brothers U.S. Aggregate Bond Index).
Q. What factors affected the Fund’s performance?
A. Fixed-income securities began the period with relatively low yields, and those yields continued to fall as the fallout from the subprime mortgage market led to a flight to quality among investors. As a result, owning anything but Treasuries resulted in a slight drag on performance.1
The Fund began the period with a Treasury allocation equal to that of the benchmark. During the period we boosted the Fund’s allocation to agency securities, mortgage-backed agency pass-through securities and corporate securities, which offered higher-than-normal yields compared to Treasuries. We believed those holdings were undervalued and were poised to perform well once the market reverted to form. Spreads remained wide during the period, however, and the fund’s underweight position in Treasuries relative to the benchmark hurt relative performance.1
We maintained a duration that was neutral to slightly longer than the Fund’s benchmark. That strategy helped performance slightly. The largest positive impact on performance came from the Fund’s positioning within the five- to seven-year portion of the yield curve. Our strategy, known as “bulleting,” is intended to take advantage of a steepening yield curve by clustering holdings in the middle of that curve. Our bulleted approach boosted performance, because the yield curve did steepen as investors continued to have concerns about the direction of the economy.1
The Fund also benefited from its overweight position in tax-exempt municipal securities, which offered higher yields than Treasuries during part of the period. As those yields came back in line with Treasuries, we unwound our overweight position to lock in the Fund’s gains.1
1 | Portfolio composition is as of September 30, 2008 and is subject to change. |
20
Value of a $10,000 Investment
| * | Reflects 5.75% maximum sales charge. |
| ** | Reflects the applicable contingent deferred sales charge (CDSC), maximum of 5.00%. |
| *** | Reflects the applicable maximum CDSC of 1.00% (applicable only to redemptions within one year of purchase, and as such, are not reflected in the Total Return tables since the periods reflected are for a year or longer). |
Average Annual Total Returns
As of September 30, 2008 | Inception Date | 1 Year | 5 Years | Since Inception | ||||||||
Class A Shares* | 12/2/99 | (3.83 | )% | 1.72 | % | 4.39 | % | |||||
Class B Shares** | 12/2/99 | (2.60 | )% | 2.00 | % | 4.39 | % | |||||
Class C Shares*** | 2/1/01 | 1 | 1.21 | % | 2.17 | % | 4.34 | % | ||||
Institutional Shares | 12/2/99 | 2.32 | % | 3.20 | % | 5.34 | % | |||||
Barclays Capital U.S. Aggregate Bond Index | 11/30/99 | 3.65 | % | 3.78 | % | 5.90 | % |
Past performance does not guarantee future results. The performance data quoted represents past performance and current returns may be lower or higher. Total return figures include change in share price, reinvestment of dividends and capital gains, and do not reflect taxes that a shareholder would pay on fund distributions or on the redemption of fund shares. The investment return and principal value will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than the original cost. To obtain performance information current to the most recent month end, please visit www.bbtfunds.com.
The chart above represents a comparison of a hypothetical $10,000 investment in the indicated share class versus a similar investment in the Fund’s benchmark, and represents the reinvestment of dividends and capital gains.
1 | Class C Shares were not in existence prior to 2/1/01. Performance for periods prior to that is based on the historical performance of the Class B Shares, and has been adjusted for the maximum CDSC applicable to Class C Shares, but does not include the Class C Shares 12b-1 fees, which if reflected, would have lowered performance. |
The Fund is measured against the Barclays Capital U.S. Aggregate Bond Index (formerly known as the Lehman Brothers U.S. Aggregate Bond Index), an unmanaged index which is a market value-weighted performance benchmark for investment-grade fixed-rate debt issues, including government, corporate, asset-backed, and mortgage-backed securities, with maturities of at least one year. The index is unmanaged and does not reflect the deduction of expenses associated with a mutual fund, such as investment management and fund accounting fees. The Fund’s performance reflects the deduction of fees for these services. Investors cannot invest directly in an index, although they can invest in its underlying securities.
A portion of the Fund’s fees has been waived. If the fees had not been waived, the Fund’s total return for the periods would have been lower.
21
BB&T Kentucky Intermediate Tax-Free Fund
Portfolio Manager
Robert F. Millikan, CFA
The BB&T Kentucky Intermediate Tax-Free Fund is managed by Robert F. Millikan, CFA, Director of Fixed Income Management for BB&T Asset Management, Inc. Mr. Millikan received a BA in Economics from Wake Forest University, and is a past president of the North Carolina Society of Financial Analysts and chairman of the board of directors of the Carolinas Municipal Advisory Council. Mr. Millikan has been managing investors’ money since 1990. He is supported by the BB&T Fixed Income Portfolio Management Team, which includes Carrie R. Breswitz; Brad D. Eppard, CFA; David T. Johnson; Kevin E. McNair, CFA; and Justin B. Nicholson. The team brings to the Fund six decades of combined investment management experience, along with a broad range of specialized skills encompassing a cross-section of fixed-income sectors.
Investment Concerns
Because the Fund is non-diversified and invests primarily in Kentucky municipal securities, the Fund is particularly susceptible to any economic, political, or regulatory developments affecting a particular issuer of Kentucky municipal securities. Bonds offer a relatively stable level of income, although bond prices will fluctuate providing the potential for principal gain or loss. Intermediate-term, higher-quality bonds generally offer less risk than longer-term bonds and a lower rate of return. The Fund is subject to the risk that principal value reacts in opposition to the movement of interests rates and that a rising interest rate environment increases the risk of loss of principal. The Fund’s income may be subject to certain state and local taxes and, depending on a investors tax status, to the Federal alternative minimum tax.
Q. How did the Fund perform during the 12-month period between October 1, 2007 and September 30, 2008?
A. The Fund gained 1.59% (Institutional Shares). That compared to a 2.59% return for the Barclays Capital -7Year Municipal Bond Index (formally known as Lehman Brothers 7-Year Municipal Bond Index).
Q. What factors affected the Fund’s performance?
A. Investors concerned about the credit and liquidity crises fled longer-term municipal bonds in favor of short-term munis and Treasuries. This development caused the yield curve in the municipal markets to steepen dramatically for the period as a whole. The Fund (Institutional Shares), which holds securities with a variety of maturities, was able to produce a positive return in that environment.1
The last month of the period proved difficult for municipal bonds: Institutional investors liquidated their municipal holdings in order to generate cash, glutting a market that already faced insufficient liquidity in the wake of Bear Stearns, Merrill Lynch, and Lehman Brothers’ collapse and UBS’ withdrawal from the muni markets. Municipal bond yields skyrocketed as prices fell, particularly on longer-term securities. The tumultuous market in September reduced the Fund’s absolute return for the year.1
Municipal bonds that relied on insurance fared poorly during this period, as the financial health of bond insurers came into question. The Fund’s return relative to its benchmark benefited from holding bonds that relied less on insurance and more on underlying quality.1
Kentucky’s municipal bond market is somewhat lower-quality than the national market. This quality difference had a significant negative impact on returns compared to the national benchmark, as investors sold all but the highest-quality securities. The Fund’s position in bonds with 10- to 20-year maturities also reduced performance against the index, which does not include any bonds with maturities longer than 10 years. Such bonds offered the greatest yield premium over Treasury bonds in history, which we believe make them attractive on a long-term basis.1
1 | Portfolio composition is as of September 30, 2008 and is subject to change. |
22
Value of a $10,000 Investment
| * | Reflects 3.00% maximum sales charge. |
Average Annual Total Returns
As of September 30, 2008 | Inception Date | 1 Year | 5 Year | Since Inception | |||||||
Class A Shares* | 2/24/03 | (1.69 | )% | 1.62 | % | 2.36 | % | ||||
Institutional Shares | 2/24/03 | 1.59 | % | 2.48 | % | 2.87 | % | ||||
Barclays Capital 7-Year Municipal Bond Index | 2/28/03 | 2.59 | % | 3.11 | % | 3.36 | % |
Past performance does not guarantee future results. The performance data quoted represents past performance and current returns may be lower or higher. Total return figures include change in share price, reinvestment of dividends and capital gains, and do not reflect taxes that a shareholder would pay on fund distributions or on the redemption of fund shares. The investment return and principal value will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than the original cost. To obtain performance information current to the most recent month end, please visit www.bbtfunds.com.
The chart above represents a comparison of a hypothetical $10,000 investment in the indicated share class versus a similar investment in the Fund’s benchmark, and represents the reinvestment of dividends and capital gains.
The Fund is measured against the Barclays Capital 7-Year Municipal Bond Index (formerly known as the Lehman Brothers 7-Year Municipal Bond Index), an unmanaged index which is representative of municipal bonds with a minimum credit rating of at least Baa, have a maturity value of at least $5 million and a maturity range of 6-8 years. The index does not reflect the deduction of expenses associated with a mutual fund, such as investment management and fund accounting fees. The Fund performance reflects the deduction of fees for these services. Investors cannot invest directly in an index, although they can invest in its underlying securities.
A portion of the Fund’s fees has been waived. If the fees had not been waived, the Fund’s total return for the periods would have been lower.
23
BB&T Maryland Intermediate Tax-Free Fund
Portfolio Manager
Robert F. Millikan, CFA
The BB&T Maryland Intermediate Tax-Free Fund is managed by Robert F. Millikan, CFA, Director of Fixed Income Management for BB&T Asset Management, Inc. Mr. Millikan received a BA in Economics from Wake Forest University, and is a past president of the North Carolina Society of Financial Analysts and chairman of the board of directors of the Carolinas Municipal Advisory Council. Mr. Millikan has been managing investors’ money since 1990. He is supported by the BB&T Fixed Income Portfolio Management Team, which includes Carrie R. Breswitz; Brad D. Eppard, CFA; David T. Johnson; Kevin E. McNair, CFA; and Justin B. Nicholson. The team brings to the Fund six decades of combined investment management experience, along with a broad range of specialized skills encompassing a cross-section of fixed-income sectors.
Investment Concerns
Because the Fund is non-diversified and invests primarily in Maryland municipal securities, the Fund is particularly susceptible to any economic, political, or regulatory developments affecting a particular issuer of Maryland municipal securities. Bonds offer a relatively stable level of income, although bond prices will fluctuate providing the potential for principal gain or loss. Intermediate-term, higher-quality bonds generally offer less risk than longer-term bonds and a lower rate of return. The Fund is subject to the risk that principal value reacts in opposition to the movement of interests rates and that a rising interest rate environment increases the risk of loss of principal. The Fund’s income may be subject to certain state and local taxes and, depending on a investors tax status, to the Federal alternative minimum tax.
Q. How did the Fund perform during the 12-month period between October 1, 2007 and September 30, 2008?
A. The Fund gained 2.10% (Institutional Shares). That compared to a 2.59% return for the Barclays Capital 7-Year Municipal Bond Index (formerly known as the Lehman Brothers 7-Year Municipal Bond Index).
Q. What factors affected the Fund’s performance?
A. Investors responded to the credit and liquidity crises by fleeing longer-term municipal bonds in favor of short-term munis and Treasuries. This development caused the yield curve in the municipal markets to steepen dramatically for the period as a whole. The Fund (Institutional Shares), which holds securities with a variety of maturities, was able to produce a positive return in that environment.1
Municipal bonds lost ground during the last month of the period, as institutional investors liquidated municipal holdings in order to generate cash, glutting a market that already faced insufficient liquidity. Prices on municipal bonds fell, particularly on longer-term securities. The market’s losses in September weighed on the Fund’s absolute return for the year.1
Insurance-backed municipal bonds fared poorly during this period, as investors lost faith in the financial health of bond insurers. The Fund had little reliance on insurance, and its relative returns benefited as a result. The Fund’s bias toward high quality also boosted returns relative to the benchmark, as the highest-quality securities fared best.1
The Fund held an allocation to bonds with 10- to 20-year maturities, which the benchmark does not include. That position weighed on performance against the index, as investors sold long-term bonds in pursuit of liquidity. Long-term municipal bonds offered the largest yield premium over Treasury bonds they ever had, so we believed they were very attractive on a long-term basis.1
| 1 | Portfolio composition is as of September 30, 2008 and is subject to change. |
24
Value of a $10,000 Investment
| * | Reflects 3.00% maximum sales charge. |
Average Annual Total Returns
As of September 30, 2008 | Inception Date | 1 Year | 5 Year | Since Inception | |||||||
Class A Shares* | 2/24/03 | (1.18 | )% | 1.95 | % | 2.32 | % | ||||
Institutional Shares | 2/24/03 | 2.10 | % | 2.81 | % | 3.03 | % | ||||
Barclays Capital 7-Year Municipal Bond Index | 2/28/03 | 2.59 | % | 3.11 | % | 3.36 | % |
Past performance does not guarantee future results. The performance data quoted represents past performance and current returns may be lower or higher. Total return figures include change in share price, reinvestment of dividends and capital gains, and do not reflect taxes that a shareholder would pay on fund distributions or on the redemption of fund shares. The investment return and principal value will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than the original cost. To obtain performance information current to the most recent month end, please visit www.bbtfunds.com.
The chart above represents a comparison of a hypothetical $10,000 investment in the indicated share class versus a similar investment in the Fund’s benchmark, and represents the reinvestment of dividends and capital gains.
The Fund is measured against the Barclays Capital 7-Year Municipal Bond Index (formerly known as the Lehman Brothers 7-Year Municipal Bond Index), an unmanaged index which is representative of municipal bonds with a minimum credit rating of at least Baa, have a maturity value of at least $5 million and a maturity range of 6-8 years. The index does not reflect the deduction of expenses associated with a mutual fund, such as investment management and fund accounting fees. The Fund’s performance reflects the deduction of fees for these services. Investors cannot invest directly in an index, although they can invest in its underlying securities.
A portion of the Fund’s fees has been waived. If the fees had not been waived, the Fund’s total return for the periods would have been lower.
25
BB&T North Carolina Intermediate Tax-Free Fund
Portfolio Manager
Robert F. Millikan, CFA
The BB&T North Carolina Intermediate Tax-Free Fund is managed by Robert F. Millikan, CFA, Director of Fixed Income Management for BB&T Asset Management, Inc. Mr. Millikan received a BA in Economics from Wake Forest University, and is a past president of the North Carolina Society of Financial Analysts and chairman of the board of directors of the Carolinas Municipal Advisory Council. Mr. Millikan has been managing investors’ money since 1990. He is supported by the BB&T Fixed Income Portfolio Management Team, which includes Carrie R. Breswitz; Brad D. Eppard, CFA; David T. Johnson; Kevin E. McNair, CFA; and Justin B. Nicholson. The team brings to the Fund six decades of combined investment management experience, along with a broad range of specialized skills encompassing a cross-section of fixed-income sectors.
Investment Concerns
Because the Fund is non-diversified and invests primarily in North Carolina municipal securities, the Fund is particularly susceptible to any economic, political, or regulatory developments affecting a particular issuer of North Carolina municipal securities. Bonds offer a relatively stable level of income, although bond prices will fluctuate providing the potential for principal gain or loss. Intermediate-term, higher-quality bonds generally offer less risk than longer-term bonds and a lower rate of return. The Fund is subject to the risk that principal value reacts in opposition to the movement of interests rates and that a rising interest rate environment increases the risk of loss of principal. The Fund’s income may be subject to certain state and local taxes and, depending on a investors tax status, to the Federal alternative minimum tax.
Q. How did the Fund perform during the 12-month period between October 1, 2007 and September 30, 2008?
A. The Fund gained 1.67% (Institutional Shares). That compared to a 2.59% return for the Barclays Capital 7-Year Municipal Bond Index (formerly known as the Lehman Brothers 7-Year Municipal Bond Index).
Q. What factors affected the Fund’s performance?
A. Investors during this period grew increasingly fearful of the credit and liquidity crises that engulfed the financial system. As a result, they fled longer-term municipal bonds in favor of short-term munis and Treasuries. This trend led to a steeper yield curve for the municipal markets. The Fund (Institutional Shares) produced a positive return in that environment.1
September proved difficult for the municipal markets. Institutional investors sold municipal holdings to generate cash, glutting a market that already suffered from insufficient liquidity. Prices on municipal bonds fell as a result, particularly on longer-term securities. The market’s losses during the final month of the period weighed on the Fund’s absolute return for the fiscal year.1
We do not take into account bond insurance when evaluating the credit quality of securities, but rather select securities based on their underlying credit quality. That approach boosted returns relative to the benchmark, as investors became concerned about the financial health of bond insurers. The high quality of the Fund’s portfolio also increased returns relative to the benchmark, as investors favored the highest-quality securities.1
The Fund held a portion of its portfolio in bonds with 10- to 20-year maturities, which the benchmark does not include. That position weighed on performance against the index, as liquidity-seeking investors sold long-term bonds. Long-term municipal bonds offered the largest yield premium in history over Treasury bonds, so we believed they presented very attractive long-term investment opportunities.1
| 1 | Portfolio composition is as of September 30, 2008 and is subject to change. |
26
Value of a $10,000 Investment
| * | Reflects 3.00% maximum sales charge. |
Average Annual Total Returns
As of September 30, 2008 | Inception Date | 1 Year | 5 Years | 10 Years | |||||||
Class A Shares* | 10/16/92 | (1.63 | )% | 1.71 | % | 3.17 | % | ||||
Institutional Shares | 10/16/92 | 1.67 | % | 2.55 | % | 3.67 | % | ||||
Barclays Capital 7-Year Municipal Bond Index | N/A | 2.59 | % | 3.11 | % | 4.47 | % |
Past performance does not guarantee future results. The performance data quoted represents past performance and current returns may be lower or higher. Total return figures include change in share price, reinvestment of dividends and capital gains, and do not reflect taxes that a shareholder would pay on fund distributions or on the redemption of fund shares. The investment return and principal value will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than the original cost. To obtain performance information current to the most recent month end, please visit www.bbtfunds.com.
The chart above represents a comparison of a hypothetical $10,000 investment in the indicated share class versus a similar investment in the Fund’s benchmark, and represents the reinvestment of dividends and capital gains.
The Fund is measured against the Barclays Capital 7-Year Municipal Bond Index (formerly known as the Lehman Brothers 7-Year Municipal Bond Index), an unmanaged index which is representative of municipal bonds with a minimum credit rating of at least Baa, have a maturity value of at least $5 million and a maturity range of 6-8 years. The index does not reflect the deduction of expenses associated with a mutual fund, such as investment management and fund accounting fees. The Fund’s performance reflects the deduction of fees for these services. Investors cannot invest directly in an index, although they can invest in its underlying securities.
A portion of the Fund’s fees has been waived. If the fees had not been waived, the Fund’s total return for the periods would have been lower.
27
BB&T South Carolina Intermediate Tax-Free Fund
Portfolio Manager
Robert F. Millikan, CFA
The BB&T South Carolina Intermediate Tax-Free Fund is managed by Robert F. Millikan, CFA, Director of Fixed Income Management for BB&T Asset Management, Inc. Mr. Millikan received a BA in Economics from Wake Forest University, and is a past president of the North Carolina Society of Financial Analysts and chairman of the board of directors of the Carolinas Municipal Advisory Council. Mr. Millikan has been managing investors’ money since 1990. He is supported by the BB&T Fixed Income Portfolio Management Team, which includes Carrie R. Breswitz; Brad D. Eppard, CFA; David T. Johnson; Kevin E. McNair, CFA; and Justin B. Nicholson. The team brings to the Fund six decades of combined investment management experience, along with a broad range of specialized skills encompassing a cross-section of fixed-income sectors.
Investment Concerns
Because the Fund is non-diversified and invests primarily in South Carolina municipal securities, the Fund is particularly susceptible to any economic, political, or regulatory developments affecting a particular issuer of South Carolina municipal securities. Bonds offer a relatively stable level of income, although bond prices will fluctuate providing the potential for principal gain or loss. Intermediate-term, higher-quality bonds generally offer less risk than longer-term bonds and a lower rate of return. The Fund is subject to the risk that principal value reacts in opposition to the movement of interests rates and that a rising interest rate environment increases the risk of loss of principal. The Fund’s income may be subject to certain state and local taxes and, depending on a investors tax status, to the Federal alternative minimum tax.
Q. How did the Fund perform during the 12-month period between October 1, 2007 and September 30, 2008?
A. The Fund gained 1.27% (Institutional Shares). That compared to a 2.59% return for the Barclays Capital 7-Year Municipal Bond Index (formerly known as the Lehman Brothers 7-Year Municipal Bond Index).
Q. What factors affected the Fund’s performance?
A. Investors’ anxiety about the credit and liquidity crises grew during this period. They responded by fleeing longer-term municipal bonds in favor of short-term munis and Treasuries. This trend led to a steeper yield curve for the municipal markets. The Fund (Institutional Shares) produced a positive return in that environment.1
September was one of the worst months on record for the municipal markets. Institutional investors sold municipal holdings to generate cash, glutting a market that already suffered from insufficient liquidity. Prices on municipal bonds fell, particularly on longer-term securities. The market’s losses during the final month of the period weighed on the Fund’s return for the fiscal year.1
We do not take into account bond insurance when evaluating the credit quality of securities, but rather select securities based on their underlying credit quality. That approach helped performance against the benchmark, as investors became concerned that bond insurers might not be able to meet their obligations.1
The Fund held a stake in bonds with 10- to 20-year maturities, which are not included in the benchmark. That position in long-term bonds weighed on performance against the index, as investors pursued liquidity by selling long-term securities in favor of short-term issues. We believed long-term municipal bonds presented very attractive long-term investment opportunities, as they offered the largest yield premium over Treasury bonds in history.1
| 1 | Portfolio composition is as of September 30, 2008 and is subject to change. |
28
Value of a $10,000 Investment
| * | Reflects 3.00% maximum sales charge. |
Average Annual Total Returns
As of September 30, 2008 | Inception Date | 1 Year | 5 Years | 10 Years | |||||||
Class A Shares* | 10/20/97 | (2.11 | )% | 1.59 | % | 3.12 | % | ||||
Institutional Shares | 10/20/97 | 1.27 | % | 2.47 | % | 3.63 | % | ||||
Barclays Capital 7-Year Municipal Bond Index | 10/31/97 | 2.59 | % | 3.11 | % | 4.47 | % |
Past performance does not guarantee future results. The performance data quoted represents past performance and current returns may be lower or higher. Total return figures include change in share price, reinvestment of dividends and capital gains, and do not reflect taxes that a shareholder would pay on fund distributions or on the redemption of fund shares. The investment return and principal value will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than the original cost. To obtain performance information current to the most recent month end, please visit www.bbtfunds.com.
The chart above represents a comparison of a hypothetical $10,000 investment in the indicated share class versus a similar investment in the Fund’s benchmark, and represents the reinvestment of dividends and capital gains.
The Fund is measured against the Barclays Capital 7-Year Municipal Bond Index (formerly known as the Lehman Brothers 7-Year Municipal Bond Index), an unmanaged index which is representative of municipal bonds with a minimum credit rating of at least Baa, have a maturity value of at least $5 million and a maturity range of 6-8 years. The index does not reflect the deduction of expenses associated with a mutual fund, such as investment management and fund accounting fees. The Fund’s performance reflects the deduction of fees for these services. Investors cannot invest directly in an index, although they can invest in its underlying securities.
A portion of the Fund’s fees has been waived. If the fees had not been waived, the Fund’s total return for the periods would have been lower.
29
BB&T Virginia Intermediate Tax-Free Fund
Portfolio Manager
Robert F. Millikan, CFA
The BB&T Virginia Intermediate Tax-Free Fund is managed by Robert F. Millikan, CFA, Director of Fixed Income Management for BB&T Asset Management, Inc. Mr. Millikan received a BA in Economics from Wake Forest University, and is a past president of the North Carolina Society of Financial Analysts and chairman of the board of directors of the Carolinas Municipal Advisory Council. Mr. Millikan has been managing investors’ money since 1990. He is supported by the BB&T Fixed Income Portfolio Management Team, which includes Carrie R. Breswitz; Brad D. Eppard, CFA; David T. Johnson; Kevin E. McNair, CFA; and Justin B. Nicholson. The team brings to the Fund six decades of combined investment management experience, along with a broad range of specialized skills encompassing a cross-section of fixed-income sectors.
Investment Concerns
Because the Fund is non-diversified and invests primarily in Virginia municipal securities, the Fund is particularly susceptible to any economic, political, or regulatory developments affecting a particular issuer of Virginia municipal securities. Bonds offer a relatively stable level of income, although bond prices will fluctuate providing the potential for principal gain or loss. Intermediate-term, higher-quality bonds generally offer less risk than longer-term bonds and a lower rate of return. The Fund is subject to the risk that principal value reacts in opposition to the movement of interest rates and that a rising interest rate environment increases the risk of loss of principal. The Fund’s income may be subject to certain state and local taxes and, depending on a investors tax status, to the Federal alternative minimum tax.
Q. How did the Fund perform during the 12-month period between October 1, 2007 and September 30, 2008?
A. The Fund gained 2.13% (Institutional Shares). That compared to a 2.59% return for the Barclays Capital 7-Year Municipal Bond Index (formerly known as the Lehman Brothers 7-Year Municipal Bond Index).
Q. What factors affected the Fund’s performance?
A. Investors grew increasingly anxious about the credit and liquidity crises. As a result, they pursued safety and liquidity by fleeing longer-term municipal bonds in favor of short-term munis and Treasuries. This trend caused a steeper municipal yield curve. The Fund (Institutional Shares), which holds bonds with a variety of maturity lengths, generated a positive return in that environment.1
September ranked among the municipal markets’ worst-ever months. Institutional investors sold municipal bonds to generate cash, increasing supply in a market that already struggled with insufficient liquidity. Prices on municipal bonds fell, with longer-term securities faring worst. The market’s losses during the final month of the period reduced the Fund’s absolute return for the fiscal year.1
We do not take into account bond insurance when evaluating the credit quality of securities, but rather select securities based on their underlying credit quality. That approach helped relative returns, as investors became concerned that bond insurers might not be able to meet their obligations. High-quality securities outperformed lower-quality bonds, so the Fund’s emphasis on quality also boosted returns against the benchmark.1
The Fund held municipal bonds with 10- to 20-year maturities, which are not included in the benchmark. The position in long-term bonds weighed on performance against the index, as investors sold long-term securities in favor of short-term issues. We maintained the Fund’s long-term bond holdings, which we believed presented very attractive long-term investment opportunities given the historical yield premiums they offered over Treasury bonds.1
| 1 | Portfolio composition is as of September 30, 2008 and is subject to change. |
30
Value of a $10,000 Investment
| * | Reflects 3.00% maximum sales charge. |
Average Annual Total Returns
As of September 30, 2008 | Inception Date | 1 Year | 5 Years | Since Inception | |||||||
Class A Shares* | 5/17/99 | (1.27 | )% | 1.69 | % | 3.50 | % | ||||
Institutional Shares | 5/17/99 | 2.13 | % | 2.56 | % | 3.89 | % | ||||
Barclays Capital 7-Year Municipal Bond Index | 5/31/99 | 2.59 | % | 3.11 | % | 4.66 | % |
Past performance does not guarantee future results. The performance data quoted represents past performance and current returns may be lower or higher. Total return figures include change in share price, reinvestment of dividends and capital gains, and do not reflect taxes that a shareholder would pay on fund distributions or on the redemption of fund shares. The investment return and principal value will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than the original cost. To obtain performance information current to the most recent month end, please visit www.bbtfunds.com.
The chart above represents a comparison of a hypothetical $10,000 investment in the indicated share class versus a similar investment in the Fund’s benchmark, and represents the reinvestment of dividends and capital gains.
The Fund is measured against the Barclays Capital 7-Year Municipal Bond Index (formerly known as the Lehman Brothers 7-Year Municipal Bond Index), an unmanaged index which is representative of municipal bonds with a minimum credit rating of at least Baa, have a maturity value of at least $5 million and a maturity range of 6-8 years. The index does not reflect the deduction of expenses associated with a mutual fund, such as investment management and fund accounting fees. The Fund’s performance reflects the deduction of fees for these services. Investors cannot invest directly in an index, although they can invest in its underlying securities.
A portion of the Fund’s fees has been waived. If the fees had not been waived, the Fund’s total return for the periods would have been lower.
31
BB&T West Virginia Intermediate Tax-Free Fund
Portfolio Manager
Robert F. Millikan, CFA
The BB&T West Virginia Intermediate Tax-Free Fund is managed by Robert F. Millikan, CFA, Director of Fixed Income Management for BB&T Asset Management, Inc. Mr. Millikan received a BA in Economics from Wake Forest University, and is a past president of the North Carolina Society of Financial Analysts and chairman of the board of directors of the Carolinas Municipal Advisory Council. Mr. Millikan has been managing investors’ money since 1990. He is supported by the BB&T Fixed Income Portfolio Management Team, which includes Carrie R. Breswitz; Brad D. Eppard, CFA; David T. Johnson; Kevin E. McNair, CFA; and Justin B. Nicholson. The team brings to the Fund six decades of combined investment management experience, along with a broad range of specialized skills encompassing a cross-section of fixed-income sectors.
Investment Concerns
Because the Fund is non-diversified and invests primarily in West Virginia municipal securities, the Fund is particularly susceptible to any economic, political, or regulatory developments affecting a particular issuer of West Virginia municipal securities. Bonds offer a relatively stable level of income, although bond prices will fluctuate providing the potential for principal gain or loss. Intermediate-term, higher-quality bonds generally offer less risk than longer-term bonds and a lower rate of return. The Fund is subject to the risk that principal value reacts in opposition to the movement of interest rates and that a rising interest rate environment increases the risk of loss of principal. The Fund’s income may be subject to certain state and local taxes and, depending on a investors tax status, to the Federal alternative minimum tax.
Q. How did the Fund perform during the 12-month period between October 1, 2007 and September 30, 2008?
A. The Fund gained 0.18% (Institutional Shares). That compared to a 2.59% return for the Barclays Capital 7-Year Municipal Bond Index (formerly known as the Lehman Brothers 7-Year Municipal Bond Index).
Q. What factors affected the Fund’s performance?
A. The credit and liquidity crises caused investors to seek safety and liquidity by selling longer-term municipal bonds in favor of short-term munis and Treasuries. This trend caused the municipal yield curve to steepen. The Fund (Institutional Shares) holds bonds with a variety of maturity lengths, helping it generate a positive return in that environment.1
September proved to be one of the municipal bond markets’ worst months in history. Institutional investors sold municipal bonds to generate cash, increasing supply in a market that was already suffering from too little liquidity. Prices on municipal bonds fell, led by longer-term securities. The market’s losses during the final month of the period decreased the Fund’s absolute return for the fiscal year.1
Insurance-backed municipal bonds suffered from doubts about the financial health of bond insurers. The Fund’s return relative to its benchmark was negatively affected by its greater exposure to insured bonds, as West Virginia has relied more heavily on insurance when issuing bonds.1
West Virginia municipal bonds generally have lower credit ratings than the bonds in the national benchmark index. The lower quality of West Virginia bonds weighed on relative returns, as investors favored the highest-quality securities. The Fund’s positions in bonds with maturities of between 10 and 20 years also reduced performance against the index, which does not include long-term bonds. We generally maintained those long-term holdings, which we believed presented good long-term opportunities given the historically high yield long-term municipal bonds offered over Treasuries.1
| 1 | Portfolio composition is as of September 30, 2008 and is subject to change. |
32
Value of a $10,000 Investment
| * | Reflects 3.00% maximum sales charge. |
Average Annual Total Returns
As of September 30, 2008 | Inception Date | 1 Year | 5 Years | 10 Years | ||||||||
Class A Shares* | 12/17/93 | 1 | (3.08 | )% | 1.63 | % | 3.14 | % | ||||
Institutional Shares | 12/1/93 | 1 | 0.18 | % | 2.52 | % | 3.71 | % | ||||
Barclays Capital 7-Year Municipal Bond Index | N/A | 2.59 | % | 3.11 | % | 4.47 | % |
Past performance does not guarantee future results. The performance data quoted represents past performance and current returns may be lower or higher. Total return figures include change in share price, reinvestment of dividends and capital gains, and do not reflect taxes that a shareholder would pay on fund distributions or on the redemption of fund shares. The investment return and principal value will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than the original cost. To obtain performance information current to the most recent month end, please visit www.bbtfunds.com.
The chart above represents a comparison of a hypothetical $10,000 investment in the indicated share class versus a similar investment in the Fund’s benchmark, and represents the reinvestment of dividends and capital gains.
1 | Fund performance as shown for Class A and Institutional Shares includes the performance of the OVB West Virginia Tax-Exempt Income Portfolio for the periods prior to its consolidation with the BB&T West Virginia Intermediate Tax-Free Fund on 7/23/01. |
The Fund is measured against the Barclays Capital 7-Year Municipal Bond Index (formerly known as the Lehman Brothers 7-Year Municipal Bond Index), an unmanaged index which is representative of municipal bonds with a minimum credit rating of at least Baa, have a maturity value of at least $5 million and a maturity range of 6-8 years. The index does not reflect the deduction of expenses associated with a mutual fund, such as investment management and fund accounting fees. The Fund’s performance reflects the deduction of fees for these services. Investors cannot invest directly in an index, although they can invest in its underlying securities.
A portion of the Fund’s fees has been waived. If the fees had not been waived, the Fund’s total return for the periods would have been lower.
33
BB&T National Tax-Free Money Market Fund
Portfolio Managers
Michael Sirianni
The BB&T National Tax-Free Money Market Fund is managed by Michael Sirianni, portfolio manager for Federated Investment Management Company (“Federated IMC”), subadviser to the Fund. Mr. Sirianni is primarily responsible for the day-today management of the portfolio. He is supported by an investment management team from Federated IMC which includes Nancy J. Beltz, CFA, Hanan Callas, CFA, Kyle D. Stewart, CFA, and a group of five money market traders. On average, team members bring more than a decade of investment management experience to the Fund, with specialization in money market portfolio management and credit analysis.
Investment Concerns
Investments in the BB&T National Tax Free Money Market Fund are neither insured nor guaranteed by the Federal Deposit Insurance Corporation or any government agency. Although the Fund seeks to preserve the value of your investments at a $1.00 per share, it is possible to lose money by investing in the Fund.
Q. What factors affected the Fund’s yield during the 12-month period between October 1, 2007 and September 30, 2008?
A. The Fund (Institutional Shares) began the period with a seven-day yield of 3.41% and ended the period with a seven-day yield of 2.26%. The Federal Reserve Board lowered its target short-term interest rate from 4.75% to 2.00% during the period in an effort to stimulate the flagging economy and provide liquidity to the financial system. The Fed’s actions pushed down yields available on municipal money market securities, reducing the yield that the Fund was able to secure for shareholders.1
We held the Fund’s portfolio in a barbell structure during much of this one-year period, emphasizing municipal paper with maturities at both the short and long ends of the money market yield curve. Holding paper with maturities of seven days or less provided ample liquidity, which was important in light of the credit and liquidity crisis that developed during this fiscal year. Investing the remainder of the Fund’s assets in longer-term money market securities helped support the Fund’s yield.1
During the last month of the period investors became extremely concerned about credit risk. Meanwhile, many banks and insurance companies that back municipal issues received credit downgrades. Investors fled the municipal money markets in favor of Treasury securities, pushing up yields on municipal securities and allowing the Fund to capture somewhat higher yields.1
| 1 | Portfolio composition is as of September 30, 2008 and is subject to change. |
Past performance does not guarantee future results. The performance data quoted represents past performance and current returns may be lower or higher. Total return figures include change in share price, reinvestment of dividends and capital gains, and do not reflect taxes that a shareholder would pay on fund distributions or on the redemption of fund shares. The investment return and principal value will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than the original cost. To obtain performance information current to the most recent month end, please visit www.bbtfunds.com.
A portion of the Fund’s fees has been waived. If the fees had not been waived, the Fund’s total return for the periods would have been lower.
34
Portfolio Managers
Deborah A. Cunningham and Paige Wilhelm
The BB&T Prime Money Market Fund is managed by Deborah A. Cunningham and Paige Wilhelm, portfolio managers for Federated Investment Management Company (“Federated IMC”), subadviser to the Fund. Mrs. Cunningham and Mrs. Wilhelm are primarily responsible for the day-to-day management of the portfolio. They are supported by an investment management team from Federated IMC which includes William Jamison, Natalie F. Metz, Mary Ellen Tesla, Mark F. Weiss, CFA, and a group of eight money market traders. On average, team members bring more than a decade of investment management experience to the Fund, with specialization in money market portfolio management and credit analysis.
Investment Concerns
Investments in the BB&T Prime Money Market Fund are neither insured nor guaranteed by the Federal Deposit Insurance Corporation or any government agency. Although the Fund seeks to preserve the value of your investments at a $1.00 per share, it is possible to lose money by investing in the Fund.
Q. What factors affected the Fund’s yield during the 12-month period between October 1, 2007 and September 30, 2008?
A. The Federal Funds rate stood at 4.75% to begin the period. The Federal Reserve Board responded to a slowing economy and the growing financial crisis by lowering this target short-term interest rate to 2.00% during the period. This easing monetary policy pushed down yields on money market securities during much of the period.
Toward the end of the fiscal year investors responded to the credit and liquidity crises by fleeing to the perceived safety and liquidity of Treasury bills. Meanwhile, investors shunned commercial paper and many other non-government short-term instruments. This trend led to higher rates on a wide variety of money market securities.
The BB&T Prime Money Market Fund invests in commercial paper, asset-backed commercial paper, variable-rate notes, bank instruments and repurchase agreements. The Fund entered the period with an average maturity near 50 days. This average maturity resulted from a combination of overnight securities, which we held to ensure liquidity, and longer-term issues, which we purchased to capture higher yields in anticipation of federal interest-rate cuts. (The Fund does not hold securities with maturities greater than 397 days.)
We increased the Fund’s stake in overnight securities in order to boost liquidity during the tumultuous climate in the credit markets. As a result, the Fund’s average maturity decreased to 42 days over the course of the period. Our focus on liquidity reduced the Fund’s yield somewhat. Nevertheless, relatively high overnight borrowing rates limited the impact a shorter average maturity had on Fund yields.
1 | Portfolio composition is as of September 30, 2008 and is subject to change. |
Past performance does not guarantee future results. The performance data quoted represents past performance and current returns may be lower or higher. Total return figures include change in share price, reinvestment of dividends and capital gains, and do not reflect taxes that a shareholder would pay on fund distributions or on the redemption of fund shares. The investment return and principal value will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than the original cost. To obtain performance information current to the most recent month end, please visit www.bbtfunds.com.
A portion of the Fund’s fees has been waived. If the fees had not been waived, the Fund’s total return for the periods would have been lower.
35
BB&T U.S. Treasury Money Market Fund
Portfolio Manager
Kevin E. McNair, CFA
The BB&T U.S. Treasury Money Market Fund is managed by Kevin E. McNair, CFA. Mr. McNair received a BA in Economics from the University of North Carolina at Chapel Hill and a Master’s of Economics from North Carolina State University, and has been managing investors’ money since 1994. Mr. McNair is supported by the BB&T Fixed Income Portfolio Management Team, which includes Brad D. Eppard, CFA; David T. Johnson; and Robert F. Millikan, CFA. The team brings to the Fund six decades of combined investment management experience, along with a broad range of specialized skills encompassing a cross-section of fixed-income sectors.
Investment Concerns
Investments in the BB&T U.S. Treasury Money Market Fund are neither insured nor guaranteed by the Federal Deposit Insurance Corporation or any government agency. Although the Fund seeks to preserve the value of your investments at a $1.00 per share, it is possible to lose money by investing in the Fund.
Q. What factors affected the Fund’s yield during the 12-month period between October 1, 2007 and September 30, 2008?
A. The Federal Funds rate began the period at 4.75%, supporting the yield offered by this Fund and money market securities in general. We anticipated reductions in the Fed Funds rate during the period, as the economy continued to be pressured by the fallout in the subprime mortgage market. As a result, we lengthened the Fund’s average maturity to lock in higher yields. As yields continued to fall, we invested in securities with maturities between a few days and nearly one year to offer more flexibility to capture higher yields in different parts of the yield curve.1
The Federal Reserve Board cut the Federal Funds rate several times during the 12-month period, and the rate ended the period at 2.00%. The Fed’s monetary policy was intended to jumpstart the faltering economy. Investors during the period sought safe havens in the market, especially among high-quality, liquid securities such as the government money market securities in which this Fund invests. Yields on Treasury bills fell throughout the period as a result of that demand. The Fund began the period with a yield of 3.78%, and ended the period with a 0.49% yield.1
The pressure on the Fund’s yield was compounded by falling yields on repurchase agreements. Treasury bills are used as collateral on repurchase agreements, so the huge demand for Treasuries resulted in a lack of supply to be used as collateral. As a result, dealers of repurchase agreements lowered yields to essentially limit the demand for such securities.1
As of September 30, 2008, the Fund held 50.8% of its assets in repurchase agreements, 41.7% in Treasury bills and 7.5% in Treasury notes. The Fund’s average maturity was 34 days, and its credit quality as rated by Standard & Poor’s was AAA.1
| 1 | Portfolio composition is as of September 30, 2008 and is subject to change. |
Past performance does not guarantee future results. The performance data quoted represents past performance and current returns may be lower or higher. Total return figures include change in share price, reinvestment of dividends and capital gains, and do not reflect taxes that a shareholder would pay on fund distributions or on the redemption of fund shares. The investment return and principal value will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than the original cost. To obtain performance information current to the most recent month end, please visit www.bbtfunds.com.
A portion of the Fund’s fees has been waived. If the fees had not been waived, the Fund’s total return for the periods would have been lower.
36
Portfolio Managers
BB&T Balanced Portfolio Management Team
The BB&T Capital Manager Funds are managed by the BB&T Balanced Portfolio Management Team, which includes Jeffrey J. Schappe, CFA; Will Gholston, CFA; Robert F. Millikan, CFA; and Ronald T. Rimkus, CFA. The team brings to the Fund over eight decades of combined investment management experience, along with a broad range of specialized skills encompassing value stocks, growth stocks and fixed-income securities.
Investment Concerns
Equity securities (stocks) are more volatile and carry more risk than other forms of investments, including investments in high-grade fixed income securities. The net asset value per share of this Fund will fluctuate as the value of the securities in the portfolio changes.
Bonds offer a relatively stable level of income, although bond prices will fluctuate providing the potential for principal gain or loss. Intermediate-term, higher-quality bonds generally offer less risk than longer-term bonds and a lower rate of return.
Investments in the BB&T U.S. Treasury Money Market Fund are neither insured nor guaranteed by the Federal Deposit Insurance Corporation or any government agency. Although the Fund seeks to preserve the value of your investments at a $1.00 per share, it is possible to lose money by investing in the Fund.
Capital Manager Conservative Growth Fund
Capital Manager Moderate Growth Fund
Capital Manager Growth Fund
Capital Manager Equity Fund
Q. How did the Funds (Institutional Shares) perform during the 12-month period between October 1, 2007 and September 30, 2008?
A. The Capital Manager Funds and their benchmarks generated the following returns:
The Capital Manager Conservative Growth Fund: (10.21%)
The Capital Manager Moderate Growth Fund: (17.23%)
The Capital Manager Growth Fund: (21.54%)
The Capital Manager Equity Fund: (26.02%)
The S&P 500 Index: (21.96%)
The Barclay Capital Intermediate Government Bond Index (formally known as Lehman Brothers Intermediate Government Bond Index): 3.13%
Q. What factors affected the Funds’ performance?
A. The Capital Manager Funds invest in a combination of the BB&T Large Cap Fund, the BB&T Mid Cap Value Fund, the BB&T Mid Cap Growth Fund, the BB&T International Equity Fund, the BB&T Small Cap Fund, the BB&T Equity Income Fund, the BB&T Special Opportunities Equity Fund, the BB&T U.S. Treasury Money Market Fund, the iShares S&P 500 Index Fund and the iShares Russell 2000 Index Fund. The three Capital Manager Funds with fixed-income allocations also hold exposure to the BB&T Total Return Bond Fund.
The performance of equities, both in the U.S. and internationally, dragged on the Funds’ absolute returns during the period. The S&P 500 returned (21.96%) during this fiscal year, while the MSCI EAFE Index of foreign stocks returned (30.50%). The Funds with allocations to fixed-income securities benefited from positive bond returns, as the Lehman Aggregate Bond Index gained 3.65%.1
Each Capital Manager Fund held 10% of its domestic equity allocation in small-cap equities. That allocation made a positive contribution to each Fund’s relative performance, as small caps outperformed large caps: The Russell 2000 Index of small-cap stocks returned (14.48%), significantly better than the S&P 500’s (21.96%) return.1
The Capital Manager Funds held 60% of their domestic equity allocations in value stocks during the period, with 40% in growth stocks. Value underperformed growth, so the Funds’ overweight stake in value stocks weighed on relative returns. International allocations equal to 25% of the Funds’ equity portfolios also reduced performance against the Funds’ benchmarks, as international stocks underperformed U.S. stocks.1
For the Capital Manager Moderate Growth and Capital Manager Growth Funds, a 5% tactical over-weight to equities between May 12 and September 10 hurt relative performance, as bonds outperformed stocks.1
| 1 | Portfolio composition is as of September 30, 2008 and is subject to change. |
37
BB&T Capital Manager Conservative Growth Fund
Value of a $10,000 Investment
| * | Reflects 5.75% maximum sales charge. |
| ** | Reflects the applicable contingent deferred sales charge (CDSC), maximum of 5.00%. |
| *** | Reflects the applicable maximum CDSC of 1.00% (applicable only to redemptions within one year of purchase, and as such, are not reflected in the Total Return tables since the periods reflected are for a year or longer). |
Average Annual Total Returns
As of September 30, 2008 | Inception Date | 1 Year | 5 Years | 10 Years | ||||||||
A Shares* | 1/29/98 | 1 | (15.46 | )% | 2.21 | % | 2.38 | % | ||||
B Shares** | 1/29/99 | 2 | (14.29 | )% | 2.47 | % | 2.46 | % | ||||
C Shares*** | 2/1/01 | 3 | (10.99 | )% | 2.64 | % | 2.39 | % | ||||
Institutional Shares | 10/2/97 | (10.21 | )% | 3.67 | % | 3.25 | % | |||||
S&P 500 Index | 9/30/97 | (21.96 | )% | 5.17 | % | 3.06 | % | |||||
Barclays Capital Int. Government Bond Index | 9/30/97 | 3.13 | % | 3.25 | % | 4.96 | % |
Past performance does not guarantee future results. The performance data quoted represents past performance and current returns may be lower or higher. Total return figures include change in share price, reinvestment of dividends and capital gains, and do not reflect taxes that a shareholder would pay on fund distributions or on the redemption of fund shares. The investment return and principal value will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than the original cost. To obtain performance information current to the most recent month end, please visit www.bbtfunds.com.
The chart above represents a comparison of a hypothetical $10,000 investment in the indicated share class versus a similar investment in the Fund’s benchmarks, and represents the reinvestment of dividends and capital gains.
1 | Class A Shares were not in existence prior to 1/29/98. Performance for periods prior to that is based on the historical performance of the Institutional Shares, and has been adjusted for the maximum sales charge applicable to the Class A Shares, but does not include the Class A Shares 12b-1 fees, which, if reflected, performance would have been lower. |
2 | Class B Shares were not in existence prior to 1/29/99. Performance for periods prior to that is based on the historical performance of the Class A Shares, and has been adjusted for the maximum CDSC applicable to the Class B Shares, but does not include the Class B Shares 12b-1 fees, which, if reflected, performance would have been lower. |
3 | Class C Shares were not in existence prior to 2/1/01. Performance for periods prior to that is based on the historical performance of the Class A Shares, and has been adjusted for the maximum CDSC applicable to the Class C Shares, but does not include the Class C Shares 12b-1 fees, which if reflected, performance would have been lower. |
The Fund is measured against the S&P 500 Index, which is generally considered to be representative of the performance of the stock market as a whole, and against the Barclays Capital Intermediate Government Bond Index (formerly known as the Lehman Brothers Intermediate Government Bond Index), which is widely used as a broad measure of the performance of U.S. Government Bonds with maturities of less than 10 years. The indices are unmanaged and do not reflect the deduction of expenses associated with a mutual fund, such as investment management and, fund accounting fees. The Fund’s performance reflects the deduction of fees for these services. Investors cannot invest directly in an index, although they can invest in its underlying securities.
A portion of the Fund’s fees have been waived. If the fees had not been waived, the Fund’s total return for the periods would have been lower.
38
BB&T Capital Manager Moderate Growth Fund
Value of a $10,000 Investment
| * | Reflects 5.75% maximum sales charge. |
| ** | Reflects the applicable contingent deferred sales charge (CDSC), maximum of 5.00%. |
| *** | Reflects the applicable maximum CDSC of 1.00% (applicable only to redemptions within one year of purchase, and as such, are not reflected in the Total Return tables since the periods reflected are for a year or longer). |
Average Annual Total Returns
As of September 30, 2008 | Inception Date | 1 Year | 5 Years | 10 years | ||||||||
A Shares* | 1/29/98 | 1 | (22.20 | )% | 2.38 | % | 2.00 | % | ||||
B Shares** | 1/29/99 | 2 | (20.83 | )% | 2.70 | % | 2.02 | % | ||||
C Shares*** | 2/1/01 | 3 | (18.02 | )% | 2.88 | % | 2.06 | % | ||||
Institutional Shares | 10/2/97 | (17.23 | )% | 3.90 | % | 2.87 | % | |||||
S&P 500 Index | 9/30/97 | (21.96 | )% | 5.17 | % | 3.06 | % | |||||
Barclays Capital Int. Government Bond Index | 9/30/97 | 3.13 | % | 3.25 | % | 4.96 | % |
Past performance does not guarantee future results. The performance data quoted represents past performance and current returns may be lower or higher. Total return figures include change in share price, reinvestment of dividends and capital gains, and do not reflect taxes that a shareholder would pay on fund distributions or on the redemption of fund shares. The investment return and principal value will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than the original cost. To obtain performance information current to the most recent month end, please visit www.bbtfunds.com.
The chart above represents a comparison of a hypothetical $10,000 investment in the indicated share class versus a similar investment in the Fund’s benchmarks, and represents the reinvestment of dividends and capital gains.
1 | Class A Shares were not in existence prior to 1/29/98. Performance for periods prior to that is based on the historical performance of the Institutional Shares, and has been adjusted for the maximum sales charge applicable to the Class A Shares, but does not include the Class A Shares 12b-1 fees, which, if reflected, performance would have been lower. |
2 | Class B Shares were not in existence prior to 1/29/99. Performance for periods prior to that is based on the historical performance of the Class A Shares, and has been adjusted for the maximum CDSC applicable to the Class B Shares, but does not include the Class B Shares 12b-1 fees, which, if reflected, performance would have been lower. |
3 | Class C Shares were not in existence prior to 2/1/01. Performance for periods prior to that is based on the historical performance of the Class A Shares, and has been adjusted for the maximum CDSC applicable to the Class C Shares, but does not include the Class C Shares 12b-1 fees, which if reflected, performance would have been lower. |
The Fund is measured against the S&P 500 Index, which is generally considered to be representative of the performance of the stock market as a whole, and against the Barclays Capital Intermediate Government Bond Index (formerly known as the Lehman Brothers Intermediate Government Bond Index), which is widely used as a broad measure of the performance of U.S. Government Bonds with maturities of less than 10 years. The indices are unmanaged and do not reflect the deduction of expenses associated with a mutual fund, such as investment management and, fund accounting fees. The Fund’s performance reflects the deduction of fees for these services. Investors cannot invest directly in an index, although they can invest in its underlying securities.
A portion of the Fund’s fees have been waived. If the fees had not been waived, the Fund’s total return for the periods would have been lower.
39
BB&T Capital Manager Growth Fund
Value of a $10,000 Investment
| * | Reflects 5.75% maximum sales charge. |
| ** | Reflects the applicable contingent deferred sales charge (CDSC), maximum of 5.00%. |
| *** | Reflects the applicable maximum CDSC of 1.00% (applicable only to redemptions within one year of purchase, and as such, are not reflected in the Total Return tables since the periods reflected are for a year or longer). |
Average Annual Total Returns
As of September 30, 2008 | Inception Date | 1 Year | 5 Years | 10 Years | ||||||||
A Shares* | 1/29/98 | 1 | (26.17 | )% | 2.57 | % | 1.54 | % | ||||
B Shares** | 1/29/99 | 2 | (24.94 | )% | 2.85 | % | 1.59 | % | ||||
C Shares*** | 2/1/01 | 3 | (22.31 | )% | 3.00 | % | 1.55 | % | ||||
Institutional Shares | 10/2/97 | (21.54 | )% | 4.04 | % | 2.37 | % | |||||
S&P 500 Index | 9/30/97 | (21.96 | )% | 5.17 | % | 3.06 | % | |||||
Barclays Capital Int. Government Bond Index | 9/30/97 | 3.13 | % | 3.25 | % | 4.96 | % |
Past performance does not guarantee future results. The performance data quoted represents past performance and current returns may be lower or higher. Total return figures include change in share price, reinvestment of dividends and capital gains, and do not reflect taxes that a shareholder would pay on fund distributions or on the redemption of fund shares. The investment return and principal value will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than the original cost. To obtain performance information current to the most recent month end, please visit www.bbtfunds.com.
The chart above represents a comparison of a hypothetical $10,000 investment in the indicated share class versus a similar investment in the Fund’s benchmarks, and represents the reinvestment of dividends and capital gains.
1 | Class A Shares were not in existence prior to 1/29/98. Performance for periods prior to that is based on the historical performance of the Institutional Shares, and has been adjusted for the maximum sales charge applicable to the Class A Shares, but does not include the Class A Shares 12b-1 fees, which, if reflected, performance would have been lower. |
2 | Class B Shares were not in existence prior to 1/29/99. Performance for periods prior to that is based on the historical performance of the Class A Shares, and has been adjusted for the maximum CDSC applicable to the Class B Shares, but does not include the Class B Shares 12b-1 fees, which, if reflected, performance would have been lower. |
3 | Class C Shares were not in existence prior to 2/1/01. Performance for periods prior to that is based on the historical performance of the Class A Shares, and has been adjusted for the maximum CDSC applicable to the Class C Shares, but does not include the Class C Shares 12b-1 fees, which if reflected, performance would have been lower. |
The Fund is measured against the S&P 500 Index, which is generally considered to be representative of the performance of the stock market as a whole, and against the Barclays Capital Intermediate Government Bond Index (formerly known as Lehman Brothers Intermediate Government Bond Index), which is widely used as a broad measure of the performance of U.S. Government Bonds with maturities of less than 10 years. The indices are unmanaged and do not reflect the deduction of expenses associated with a mutual fund, such as investment management and, fund accounting fees. The Fund’s performance reflects the deduction of fees for these services. Investors cannot invest directly in an index, although they can invest in its underlying securities.
A portion of the Fund’s fees have been waived. If the fees had not been waived, the Fund’s total return for the periods would have been lower.
40
BB&T Capital Manager Equity Fund
Value of a $10,000 Investment
| * | Reflects 5.75% maximum sales charge. |
| ** | Reflects the applicable contingent deferred sales charge (CDSC), maximum of 5.00% |
| *** | Reflects the applicable maximum CDSC of 1.00% (applicable only to redemptions within one year of purchase, and as such, are not reflected in the Total Return tables since the periods reflected are for a year or longer). |
Average Annual Total Returns
As of September 30, 2008 | Inception Date | 1 Year | 5 Years | Since Inception | |||||||
A Shares* | 3/19/01 | (30.48 | )% | 2.63 | % | (0.40 | )% | ||||
B Shares** | 3/19/01 | (29.08 | )% | 2.96 | % | (0.35 | )% | ||||
C Shares*** | 3/19/01 | (26.77 | )% | 3.11 | % | (0.38 | )% | ||||
Institutional Shares | 3/19/01 | (26.02 | )% | 4.13 | % | 0.63 | % | ||||
S&P 500 Index | 3/31/01 | (21.96 | )% | 5.17 | % | 1.87 | % |
Past performance does not guarantee future results. The performance data quoted represents past performance and current returns may be lower or higher. Total return figures include change in share price, reinvestment of dividends and capital gains, and do not reflect taxes that a shareholder would pay on fund distributions or on the redemption of fund shares. The investment return and principal value will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than the original cost. To obtain performance information current to the most recent month end, please visit www.bbtfunds.com.
The chart above represents a comparison of a hypothetical $10,000 investment in the indicated share class versus a similar investment in the Fund’s benchmark, and represents the reinvestment of dividends and capital gains.
The Fund is measured against the S&P 500 Index, an unmanaged index generally considered to be representative of the performance of the stock market as a whole. The index does not reflect the deduction of expenses associated with a mutual fund, such as investment management and fund accounting fees. The Fund’s performance reflects the deduction of fees for these services. Investors cannot invest directly in an index, although they can invest in its underlying securities.
A portion of the Fund’s fees have been waived. If the fees had not been waived, the Fund’s total return for the periods would have been lower.
41
Summary of Portfolio Holdings, (Unaudited)
The BB&T Funds invested, as a percentage of net assets, in the following industry sectors, countries, states, funds or security types, as of September 30, 2008.
| Percentage of net assets | |||
Large Cap Fund | |||
Consumer Discretionary | 14.0 | % | |
Consumer Staples | 18.0 | % | |
Energy | 10.0 | % | |
Financials | 15.1 | % | |
Health Care | 16.4 | % | |
Industrials | 2.7 | % | |
Information Technology | 18.0 | % | |
Materials | 1.0 | % | |
Cash and Cash Equivalents | 9.1 | % | |
| 104.3 | % | ||
| Percentage of net assets | |||
Mid Cap Value Fund | |||
Consumer Discretionary | 17.7 | % | |
Exchange Traded Fund | 3.1 | % | |
Financial Services | 39.0 | % | |
Health Care | 12.5 | % | |
Materials & Processing | 3.0 | % | |
Other Energy | 1.8 | % | |
Producer Durables | 2.1 | % | |
Technology | 17.1 | % | |
Cash and Cash Equivalents | 19.0 | % | |
| 115.3 | % | ||
| Percentage of net assets | |||
Mid Cap Growth Fund | |||
Consumer Discretionary | 10.4 | % | |
Consumer Staples | 2.3 | % | |
Energy | 7.8 | % | |
Exchange Traded Funds | 28.8 | % | |
Financials | 6.0 | % | |
Health Care | 13.4 | % | |
Industrials | 15.2 | % | |
Information Technology | 10.7 | % | |
Materials | 0.7 | % | |
Cash and Cash Equivalents | 18.5 | % | |
| 113.8 | % | ||
| Percentage of net assets | |||
Small Cap Fund | |||
Consumer Discretionary | 9.4 | % | |
Consumer Staples | 4.9 | % | |
Energy | 4.8 | % | |
Exchange Traded Funds | 12.8 | % | |
Financials | 5.1 | % | |
Health Care | 21.1 | % | |
Industrials | 17.8 | % | |
Information Technology | 14.0 | % | |
Materials | 2.4 | % | |
Utilities | 2.2 | % | |
Cash and Cash Equivalents | 26.1 | % | |
| 120.6 | % | ||
| Percentage of net assets | |||
International Equity Fund | |||
Australia | 1.3 | % | |
Austria | 1.9 | % | |
Belgium | 1.0 | % | |
Bermuda | 0.1 | % | |
Canada | 1.9 | % | |
China | 0.4 | % | |
Cyprus | 0.1 | % | |
Czech Republic | 3.4 | % | |
Denmark | 1.3 | % | |
Finland | 1.1 | % | |
France | 14.6 | % | |
Germany | 10.6 | % | |
Greece | 0.4 | % | |
Hong Kong | 0.5 | % | |
Hungary | 3.5 | % | |
India | 1.6 | % | |
Ireland | 3.2 | % | |
Italy | 2.3 | % | |
Japan | 7.7 | % | |
Korea (South) | 0.3 | % | |
Mexico | 0.7 | % | |
Netherlands | 4.0 | % | |
New Zealand | 0.2 | % | |
Norway | 0.1 | % | |
Poland | 5.8 | % | |
Portugal | 0.7 | % | |
Romania | 0.2 | % | |
Russia | 1.0 | % | |
Spain | 1.4 | % | |
Sweden | 0.7 | % | |
Switzerland | 7.8 | % | |
Taiwan | 0.0 | % | |
Ukraine | 0.3 | % | |
United Kingdom | 11.3 | % | |
United States | 0.0 | % | |
Cash and Cash Equivalents | 5.7 | % | |
| 97.1 | % | ||
| Percentage of net assets | |||
Special Opportunities Equity Fund | |||
Consumer Discretionary | 9.1 | % | |
Consumer Staples | 2.3 | % | |
Energy | 16.1 | % | |
Financials | 7.2 | % | |
Health Care | 20.3 | % | |
Industrials | 7.6 | % | |
Information Technology | 28.0 | % | |
Materials | 7.1 | % | |
Cash and Cash Equivalents | 13.2 | % | |
| 110.9 | % | ||
| Percentage of net assets | |||
Equity Income Fund | |||
Consumer Discretionary | 3.9 | % | |
Consumer Staples | 11.2 | % | |
Energy | 23.8 | % | |
Financials | 17.3 | % | |
Health Care | 5.6 | % | |
Industrials | 12.6 | % | |
Information Technology | 8.1 | % | |
Materials | 1.8 | % | |
Cash and Cash Equivalents | 29.0 | % | |
| 113.3 | % | ||
42
BB&T Funds
Summary of Portfolio Holdings, (Unaudited)
| Percentage of net assets | |||
Short U.S. Government Fund | |||
Fannie Mae | 29.5 | % | |
Federal Farm Credit Bank | 9.7 | % | |
Federal Home Loan Bank | 13.2 | % | |
Freddie Mac | 27.5 | % | |
Ginnie Mae | 4.2 | % | |
Municipal Bonds | 3.0 | % | |
U.S. Treasury Notes | 7.6 | % | |
Cash and Cash Equivalents | 12.1 | % | |
| 106.8 | % | ||
| Percentage of net assets | |||
Intermediate U.S. Government Fund | |||
Fannie Mae | 50.6 | % | |
Financials | 2.7 | % | |
Freddie Mac | 27.2 | % | |
Municipal Bonds | 5.3 | % | |
Private Export Funding Corp. | 9.7 | % | |
Cash and Cash Equivalents | 9.4 | % | |
| 104.9 | % | ||
| Percentage of net assets | |||
Total Return Bond Fund | |||
Asset Backed Securities | 5.1 | % | |
Commercial Mortgage-Backed Securities | 4.8 | % | |
Corporate Bonds | 19.7 | % | |
Fannie Mae | 25.9 | % | |
Federal Home Loan Bank | 2.0 | % | |
Foreign Government Bonds | 0.5 | % | |
Freddie Mac | 27.4 | % | |
Municipal Bonds | 13.0 | % | |
U.S. Treasury Notes | 1.1 | % | |
Cash and Cash Equivalents | 5.4 | % | |
| 104.9 | % | ||
| Percentage of net assets | |||
Kentucky Intermediate Tax-Free Fund | |||
Kentucky Municipal Bonds | 94.1 | % | |
Cash and Cash Equivalents | 4.3 | % | |
| 98.4 | % | ||
| Percentage of net assets | |||
Maryland Intermediate Tax-Free Fund | |||
District of Columbia Municipal Bonds | 3.1 | % | |
Maryland Municipal Bonds | 91.1 | % | |
Cash and Cash Equivalents | 6.9 | % | |
| 101.1 | % | ||
| Percentage of net assets | |||
North Carolina Intermediate Tax-Free Fund | |||
North Carolina Municipal Bonds | 96.1 | % | |
Cash and Cash Equivalents | 2.3 | % | |
| 98.4 | % | ||
| Percentage of net assets | |||
South Carolina Intermediate Tax-Free Fund | |||
South Carolina Municipal Bonds | 93.0 | % | |
Cash and Cash Equivalents | 3.8 | % | |
| 96.8 | % | ||
| Percentage of net assets | |||
Virginia Intermediate Tax-Free Fund | |||
District of Columbia Municipal Bonds | 2.0 | % | |
Virginia Municipal Bonds | 92.9 | % | |
Cash and Cash Equivalents | 2.0 | % | |
| 96.9 | % | ||
| Percentage of net assets | |||
West Virginia Intermediate Tax-Free Fund | |||
West Virginia Municipal Bonds | 97.0 | % | |
Cash and Cash Equivalents | 2.1 | % | |
| 99.1 | % | ||
| Percentage of net assets | |||
National Tax-Free Money Market Fund | |||
Alaska | 1.5 | % | |
Arizona | 9.0 | % | |
Colorado | 1.1 | % | |
Florida | 8.6 | % | |
Georgia | 7.3 | % | |
Illinois | 14.7 | % | |
Maine | 3.3 | % | |
Massachusetts | 1.3 | % | |
Mississippi | 2.3 | % | |
Missouri | 2.0 | % | |
New Hampshire | 1.1 | % | |
New Mexico | 3.2 | % | |
Ohio | 11.0 | % | |
Oregon | 1.1 | % | |
Pennsylvania | 1.0 | % | |
Tennessee | 6.0 | % | |
Texas | 9.3 | % | |
Utah | 1.7 | % | |
Washington | 5.9 | % | |
Wisconsin | 2.9 | % | |
Cash and Cash Equivalents | 0.7 | % | |
| 95.0 | % | ||
| Percentage of net assets | |||
Prime Money Market Fund | |||
Asset Backed Securities | 1.6 | % | |
Certificates of Deposit | 20.6 | % | |
Commercial Paper | 45.8 | % | |
Repurchase Agreement | 16.3 | % | |
Variable Rate Notes | 15.6 | % | |
| 99.9 | % | ||
| Percentage of net assets | |||
U.S. Treasury Money Market Fund | |||
Repurchase Agreement | 50.8 | % | |
U.S. Treasury Bills | 41.7 | % | |
U.S. Treasury Notes | 7.5 | % | |
Cash and Cash Equivalents | 10.3 | % | |
| 110.3 | % | ||
Capital Manager Conservative Growth Fund | |||
BB&T Equity Income Fund | 3.9 | % | |
BB&T International Equity Fund | 10.0 | % | |
BB&T Large Cap Fund | 3.7 | % | |
BB&T Mid Cap Growth Fund | 3.6 | % | |
BB&T Mid Cap Value Fund | 5.5 | % | |
BB&T Special Opportunities Equity Fund | 2.1 | % | |
BB&T Total Return Bond Fund | 56.1 | % | |
BB&T U.S. Treasury Money Market Fund | 1.9 | % | |
Exchange Traded Funds | 12.0 | % | |
| 98.8 | % | ||
43
BB&T Funds
Summary of Portfolio Holdings, (Unaudited)
| Percentage of Net Assets | |||
Capital Manager Moderate Growth Fund | |||
BB&T Equity Income Fund | 5.9 | % | |
BB&T International Equity Fund | 15.0 | % | |
BB&T Large Cap Fund | 5.5 | % | |
BB&T Mid Cap Growth Fund | 5.4 | % | |
BB&T Mid Cap Value Fund | 8.3 | % | |
BB&T Special Opportunities Equity Fund | 3.1 | % | |
BB&T Total Return Bond Fund | 36.3 | % | |
BB&T U.S. Treasury Money Market Fund | 1.6 | % | |
Exchange Traded Funds | 17.8 | % | |
| 98.9 | % | ||
Capital Manager Growth Fund | |||
BB&T Equity Income Fund | 7.3 | % | |
BB&T International Equity Fund | 18.6 | % | |
BB&T Large Cap Fund | 6.8 | % | |
BB&T Mid Cap Growth Fund | 6.7 | % | |
BB&T Mid Cap Value Fund | 10.2 | % | |
BB&T Special Opportunities Equity Fund | 3.9 | % | |
BB&T Total Return Bond Fund | 21.6 | % | |
BB&T U.S. Treasury Money Market Fund | 2.5 | % | |
Exchange Traded Funds | 22.1 | % | |
| 99.7 | % | ||
Capital Manager Equity Fund | |||
BB&T Equity Income Fund | 9.4 | % | |
BB&T International Equity Fund | 24.0 | % | |
BB&T Large Cap Fund | 8.7 | % | |
BB&T Mid Cap Growth Fund | 8.7 | % | |
BB&T Mid Cap Value Fund | 13.2 | % | |
BB&T Special Opportunities Equity Fund | 5.0 | % | |
BB&T U.S. Treasury Money Market Fund | 2.7 | % | |
Exchange Traded Funds | 28.6 | % | |
| 100.3 | % | ||
44
Expense Example (Unaudited)
As a shareholder of the BB&T Funds (each a “Fund” and collectively, the “Funds”), you incur two types of costs: (1) transaction costs, including sales charges (loads) on purchases 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 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 April 1, 2008 through September 30, 2008.
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 4/1/08 | Ending Account Value 9/30/08 | Expenses Paid During Period* 4/1/08 - 9/30/08 | Annualized Expense Ratio During Period 4/1/08 - 9/30/08 | |||||||||
Large Cap Fund | ||||||||||||
Class A Shares | $ | 1,000.00 | $ | 869.90 | $ | 5.10 | 1.09 | % | ||||
Class B Shares | 1,000.00 | 866.70 | 8.63 | 1.85 | % | |||||||
Class C Shares | 1,000.00 | 866.30 | 8.63 | 1.85 | % | |||||||
Institutional Shares | 1,000.00 | 871.10 | 3.98 | 0.85 | % | |||||||
Mid Cap Value Fund | ||||||||||||
Class A Shares | 1,000.00 | 982.20 | 5.65 | 1.14 | % | |||||||
Class B Shares | 1,000.00 | 978.80 | 9.35 | 1.89 | % | |||||||
Class C Shares | 1,000.00 | 978.80 | 9.35 | 1.89 | % | |||||||
Institutional Shares | 1,000.00 | 983.30 | 4.41 | 0.89 | % | |||||||
Mid Cap Growth Fund | ||||||||||||
Class A Shares | 1,000.00 | 838.20 | 5.28 | 1.15 | % | |||||||
Class B Shares | 1,000.00 | 835.10 | 8.72 | 1.90 | % | |||||||
Class C Shares | 1,000.00 | 835.30 | 8.72 | 1.90 | % | |||||||
Institutional Shares | 1,000.00 | 838.70 | 4.14 | 0.90 | % | |||||||
Small Cap Fund | ||||||||||||
Class A Shares | 1,000.00 | 965.20 | 6.19 | 1.26 | % | |||||||
Class B Shares | 1,000.00 | 961.10 | 9.85 | 2.01 | % | |||||||
Class C Shares | 1,000.00 | 961.00 | 9.85 | 2.01 | % | |||||||
Institutional Shares | 1,000.00 | 966.30 | 4.96 | 1.01 | % | |||||||
International Equity Fund | ||||||||||||
Class A Shares | 1,000.00 | 761.80 | 7.00 | 1.59 | % | |||||||
Class B Shares | 1,000.00 | 758.80 | 10.29 | 2.34 | % | |||||||
Class C Shares | 1,000.00 | 757.60 | 10.11 | 2.30 | % | |||||||
Institutional Shares | 1,000.00 | 761.80 | 5.90 | 1.34 | % | |||||||
Special Opportunities Equity Fund | ||||||||||||
Class A Shares | 1,000.00 | 907.70 | 5.91 | 1.24 | % | |||||||
Class B Shares | 1,000.00 | 905.00 | 9.48 | 1.99 | % | |||||||
Class C Shares | 1,000.00 | 905.00 | 9.48 | 1.99 | % | |||||||
Institutional Shares | 1,000.00 | 909.00 | 4.72 | 0.99 | % | |||||||
Equity Income Fund | ||||||||||||
Class A Shares | 1,000.00 | 927.80 | 5.49 | 1.14 | % | |||||||
Class B Shares | 1,000.00 | 924.00 | 9.04 | 1.88 | % | |||||||
Class C Shares | 1,000.00 | 924.20 | 9.09 | 1.89 | % | |||||||
Institutional Shares | 1,000.00 | 928.40 | 4.29 | 0.89 | % | |||||||
Short U.S. Government Fund | ||||||||||||
Class A Shares | 1,000.00 | 1,001.50 | 4.40 | 0.88 | % | |||||||
Institutional Shares | 1,000.00 | 1,002.70 | 3.15 | 0.63 | % | |||||||
Intermediate U.S. Government Fund | ||||||||||||
Class A Shares | 1,000.00 | 998.50 | 4.50 | 0.90 | % | |||||||
Class B Shares | 1,000.00 | 993.70 | 8.22 | 1.65 | % | |||||||
Class C Shares | 1,000.00 | 994.70 | 8.23 | 1.65 | % | |||||||
Institutional Shares | 1,000.00 | 998.80 | 3.25 | 0.65 | % | |||||||
Total Return Bond Fund | ||||||||||||
Class A Shares | 1,000.00 | 971.00 | 4.43 | 0.90 | % | |||||||
Class B Shares | 1,000.00 | 968.30 | 8.12 | 1.65 | % | |||||||
Class C Shares | 1,000.00 | 968.40 | 8.12 | 1.65 | % | |||||||
Institutional Shares | 1,000.00 | 973.20 | 3.21 | 0.65 | % | |||||||
Kentucky Intermediate Tax-Free Fund | ||||||||||||
Class A Shares | 1,000.00 | 985.10 | 4.37 | 0.88 | % | |||||||
Institutional Shares | 1,000.00 | 986.30 | 3.13 | 0.63 | % | |||||||
45
BB&T Funds
Expense Example (Unaudited)
| Beginning Account Value 4/1/08 | Ending Account Value 9/30/08 | Expenses Paid During Period* 4/1/08 - 9/30/08 | Annualized Expense Ratio During Period 4/1/08 - 9/30/08 | |||||||||
Maryland Intermediate Tax-Free Fund | ||||||||||||
Class A Shares | $ | 1,000.00 | $ | 988.40 | $ | 3.83 | 0.77 | % | ||||
Institutional Shares | 1,000.00 | 989.70 | 2.59 | 0.52 | % | |||||||
North Carolina Intermediate Tax-Free Fund | ||||||||||||
Class A Shares | 1,000.00 | 989.20 | 4.38 | 0.88 | % | |||||||
Institutional Shares | 1,000.00 | 990.40 | 3.13 | 0.63 | % | |||||||
South Carolina Intermediate Tax-Free Fund | ||||||||||||
Class A Shares | 1,000.00 | 982.00 | 4.66 | 0.94 | % | |||||||
Institutional Shares | 1,000.00 | 984.00 | 3.42 | 0.69 | % | |||||||
Virginia Intermediate Tax-Free Fund | ||||||||||||
Class A Shares | 1,000.00 | 989.50 | 4.38 | 0.88 | % | |||||||
Institutional Shares | 1,000.00 | 990.70 | 3.14 | 0.63 | % | |||||||
West Virginia Intermediate Tax-Free Fund | ||||||||||||
Class A Shares | 1,000.00 | 984.50 | 4.47 | 0.90 | % | |||||||
Institutional Shares | 1,000.00 | 985.80 | 3.23 | 0.65 | % | |||||||
National Tax-Free Money Market Fund | ||||||||||||
Class A Shares | 1,000.00 | 1,008.30 | 3.36 | 0.67 | % | |||||||
Class B Shares | 1,000.00 | 1,004.90 | 6.67 | 1.33 | % | |||||||
Class C Shares | 1,000.00 | 1,004.50 | 7.07 | 1.41 | % | |||||||
Institutional Shares | 1,000.00 | 1,009.60 | 1.91 | 0.38 | % | |||||||
Prime Money Market Fund | ||||||||||||
Class A Shares | 1,000.00 | 1,009.90 | 4.77 | 0.95 | % | |||||||
Class B Shares | 1,000.00 | 1,007.30 | 7.33 | 1.46 | % | |||||||
Class C Shares | 1,000.00 | 1,007.40 | 7.28 | 1.45 | % | |||||||
Institutional Shares | 1,000.00 | 1,012.40 | 2.26 | 0.45 | % | |||||||
U.S. Treasury Money Market Fund | ||||||||||||
Class A Shares | 1,000.00 | 1,004.60 | 4.66 | 0.93 | % | |||||||
Class B Shares | 1,000.00 | 1,002.30 | 6.96 | 1.39 | % | |||||||
Class C Shares | 1,000.00 | 1,002.30 | 6.91 | 1.38 | % | |||||||
Institutional Shares | 1,000.00 | 1,007.00 | 2.21 | 0.44 | % | |||||||
Capital Manager Conservative Growth Fund | ||||||||||||
Class A Shares | 1,000.00 | 930.80 | 1.64 | 0.34 | % | |||||||
Class B Shares | 1,000.00 | 927.20 | 5.25 | 1.09 | % | |||||||
Class C Shares | 1,000.00 | 928.30 | 5.25 | 1.09 | % | |||||||
Institutional Shares | 1,000.00 | 931.60 | 0.43 | 0.09 | % | |||||||
Capital Manager Moderate Growth Fund | ||||||||||||
Class A Shares | 1,000.00 | 903.90 | 1.62 | 0.34 | % | |||||||
Class B Shares | 1,000.00 | 901.70 | 5.18 | 1.09 | % | |||||||
Class C Shares | 1,000.00 | 901.30 | 5.18 | 1.09 | % | |||||||
Institutional Shares | 1,000.00 | 905.50 | 0.43 | 0.09 | % | |||||||
Capital Manager Growth Fund | ||||||||||||
Class A Shares | 1,000.00 | 888.00 | 1.60 | 0.34 | % | |||||||
Class B Shares | 1,000.00 | 883.10 | 5.13 | 1.09 | % | |||||||
Class C Shares | 1,000.00 | 883.00 | 5.18 | 1.10 | % | |||||||
Institutional Shares | 1,000.00 | 888.20 | 0.42 | 0.09 | % | |||||||
Capital Manager Equity Fund | ||||||||||||
Class A Shares | 1,000.00 | 871.10 | 1.68 | 0.36 | % | |||||||
Class B Shares | 1,000.00 | 868.00 | 5.18 | 1.11 | % | |||||||
Class C Shares | 1,000.00 | 866.90 | 5.69 | 1.22 | % | |||||||
Institutional Shares | 1,000.00 | 871.30 | 0.51 | 0.11 | % | |||||||
| * | Expenses are equal to the average account value over the period multiplied by 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 (to reflect the one-half year period). |
46
BB&T Funds
Expense Example (Unaudited)
Hypothetical Example for Comparison Purposes
The table below provides information about hypothetical account values and hypothetical expenses based on the 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 4/1/08 | Ending Account Value 9/30/08 | Expenses Paid During Period 4/1/08 - 9/30/08 | Annualized Expense Ratio During Period 4/1/08 - 9/30/08 | |||||||||
Large Cap Fund | �� | |||||||||||
Class A Shares | $ | 1,000.00 | $ | 1,019.55 | $ | 5.50 | 1.09 | % | ||||
Class B Shares | 1,000.00 | 1,015.75 | 9.32 | 1.85 | % | |||||||
Class C Shares | 1,000.00 | 1,015.75 | 9.32 | 1.85 | % | |||||||
Institutional Shares | 1,000.00 | 1,020.75 | 4.29 | 0.85 | % | |||||||
Mid Cap Value Fund | ||||||||||||
Class A Shares | 1,000.00 | 1,019.30 | 5.76 | 1.14 | % | |||||||
Class B Shares | 1,000.00 | 1,015.55 | 9.52 | 1.89 | % | |||||||
Class C Shares | 1,000.00 | 1,015.55 | 9.52 | 1.89 | % | |||||||
Institutional Shares | 1,000.00 | 1,020.55 | 4.50 | 0.89 | % | |||||||
Mid Cap Growth Fund | ||||||||||||
Class A Shares | 1,000.00 | 1,019.25 | 5.81 | 1.15 | % | |||||||
Class B Shares | 1,000.00 | 1,015.50 | 9.57 | 1.90 | % | |||||||
Class C Shares | 1,000.00 | 1,015.50 | 9.57 | 1.90 | % | |||||||
Institutional Shares | 1,000.00 | 1,020.50 | 4.55 | 0.90 | % | |||||||
Small Cap Fund | ||||||||||||
Class A Shares | 1,000.00 | 1,018.70 | 6.36 | 1.26 | % | |||||||
Class B Shares | 1,000.00 | 1,014.95 | 10.13 | 2.01 | % | |||||||
Class C Shares | 1,000.00 | 1,014.95 | 10.13 | 2.01 | % | |||||||
Institutional Shares | 1,000.00 | 1,019.95 | 5.10 | 1.01 | % | |||||||
International Equity Fund | ||||||||||||
Class A Shares | 1,000.00 | 1,017.05 | 8.02 | 1.59 | % | |||||||
Class B Shares | 1,000.00 | 1,013.30 | 11.78 | 2.34 | % | |||||||
Class C Shares | 1,000.00 | 1,013.50 | 11.58 | 2.30 | % | |||||||
Institutional Shares | 1,000.00 | 1,018.30 | 6.76 | 1.34 | % | |||||||
Special Opportunities Equity Fund | ||||||||||||
Class A Shares | 1,000.00 | 1,018.80 | 6.26 | 1.24 | % | |||||||
Class B Shares | 1,000.00 | 1,015.05 | 10.02 | 1.99 | % | |||||||
Class C Shares | 1,000.00 | 1,015.05 | 10.02 | 1.99 | % | |||||||
Institutional Shares | 1,000.00 | 1,020.05 | 5.00 | 0.99 | % | |||||||
Equity Income Fund | ||||||||||||
Class A Shares | 1,000.00 | 1,019.30 | 5.76 | 1.14 | % | |||||||
Class B Shares | 1,000.00 | 1,015.60 | 9.47 | 1.88 | % | |||||||
Class C Shares | 1,000.00 | 1,015.55 | 9.52 | 1.89 | % | |||||||
Institutional Shares | 1,000.00 | 1,020.55 | 4.50 | 0.89 | % | |||||||
Short U.S. Government Fund | ||||||||||||
Class A Shares | 1,000.00 | 1,020.60 | 4.45 | 0.88 | % | |||||||
Institutional Shares | 1,000.00 | 1,021.85 | 3.18 | 0.63 | % | |||||||
Intermediate U.S. Government Fund | ||||||||||||
Class A Shares | 1,000.00 | 1,020.50 | 4.55 | 0.90 | % | |||||||
Class B Shares | 1,000.00 | 1,016.75 | 8.32 | 1.65 | % | |||||||
Class C Shares | 1,000.00 | 1,016.75 | 8.32 | 1.65 | % | |||||||
Institutional Shares | 1,000.00 | 1,021.75 | 3.29 | 0.65 | % | |||||||
Total Return Bond Fund | ||||||||||||
Class A Shares | 1,000.00 | 1,020.50 | 4.55 | 0.90 | % | |||||||
Class B Shares | 1,000.00 | 1,016.75 | 8.32 | 1.65 | % | |||||||
Class C Shares | 1,000.00 | 1,016.75 | 8.32 | 1.65 | % | |||||||
Institutional Shares | 1,000.00 | 1,021.75 | 3.29 | 0.65 | % | |||||||
Kentucky Intermediate Tax-Free Fund | ||||||||||||
Class A Shares | 1,000.00 | 1,020.60 | 4.45 | 0.88 | % | |||||||
Institutional Shares | 1,000.00 | 1,021.85 | 3.18 | 0.63 | % | |||||||
47
BB&T Funds
Expense Example (Unaudited)
| Beginning Account Value 4/1/08 | Ending Account Value 9/30/08 | Expenses Paid During Period 4/1/08 - 9/30/08 | Annualized Expense Ratio During Period 4/1/08 - 9/30/08 | |||||||||
Maryland Intermediate Tax-Free Fund | ||||||||||||
Class A Shares | $ | 1,000.00 | $ | 1,021.15 | $ | 3.89 | 0.77 | % | ||||
Institutional Shares | 1,000.00 | 1,022.40 | 2.63 | 0.52 | % | |||||||
North Carolina Intermediate Tax-Free Fund | ||||||||||||
Class A Shares | 1,000.00 | 1,020.60 | 4.45 | 0.88 | % | |||||||
Institutional Shares | 1,000.00 | 1,021.85 | 3.18 | 0.63 | % | |||||||
South Carolina Intermediate Tax-Free Fund | ||||||||||||
Class A Shares | 1,000.00 | 1,020.30 | 4.75 | 0.94 | % | |||||||
Institutional Shares | 1,000.00 | 1,021.55 | 3.49 | 0.69 | % | |||||||
Virginia Intermediate Tax-Free Fund | ||||||||||||
Class A Shares | 1,000.00 | 1,020.60 | 4.45 | 0.88 | % | |||||||
Institutional Shares | 1,000.00 | 1,021.85 | 3.18 | 0.63 | % | |||||||
West Virginia Intermediate Tax-Free Fund | ||||||||||||
Class A Shares | 1,000.00 | 1,020.50 | 4.55 | 0.90 | % | |||||||
Institutional Shares | 1,000.00 | 1,021.75 | 3.29 | 0.65 | % | |||||||
National Tax-Free Money Market Fund | ||||||||||||
Class A Shares | 1,000.00 | 1,021.65 | 3.39 | 0.67 | % | |||||||
Class B Shares | 1,000.00 | 1,018.35 | 6.71 | 1.33 | % | |||||||
Class C Shares | 1,000.00 | 1,017.95 | 7.11 | 1.41 | % | |||||||
Institutional Shares | 1,000.00 | 1,023.10 | 1.92 | 0.38 | % | |||||||
Prime Money Market Fund | ||||||||||||
Class A Shares | 1,000.00 | 1,020.25 | 4.80 | 0.95 | % | |||||||
Class B Shares | 1,000.00 | 1,017.70 | 7.36 | 1.46 | % | |||||||
Class C Shares | 1,000.00 | 1,017.75 | 7.31 | 1.45 | % | |||||||
Institutional Shares | 1,000.00 | 1,022.75 | 2.28 | 0.45 | % | |||||||
U.S. Treasury Money Market Fund | ||||||||||||
Class A Shares | 1,000.00 | 1,020.35 | 4.70 | 0.93 | % | |||||||
Class B Shares | 1,000.00 | 1,018.05 | 7.01 | 1.39 | % | |||||||
Class C Shares | 1,000.00 | 1,018.10 | 6.96 | 1.38 | % | |||||||
Institutional Shares | 1,000.00 | 1,022.80 | 2.23 | 0.44 | % | |||||||
Capital Manager Conservative Growth Fund | ||||||||||||
Class A Shares | 1,000.00 | 1,023.30 | 1.72 | 0.34 | % | |||||||
Class B Shares | 1,000.00 | 1,019.55 | 5.50 | 1.09 | % | |||||||
Class C Shares | 1,000.00 | 1,019.55 | 5.50 | 1.09 | % | |||||||
Institutional Shares | 1,000.00 | 1,024.55 | 0.46 | 0.09 | % | |||||||
Capital Manager Moderate Growth Fund | ||||||||||||
Class A Shares | 1,000.00 | 1,023.30 | 1.72 | 0.34 | % | |||||||
Class B Shares | 1,000.00 | 1,019.55 | 5.50 | 1.09 | % | |||||||
Class C Shares | 1,000.00 | 1,019.55 | 5.50 | 1.09 | % | |||||||
Institutional Shares | 1,000.00 | 1,024.55 | 0.46 | 0.09 | % | |||||||
Capital Manager Growth Fund | ||||||||||||
Class A Shares | 1,000.00 | 1,023.30 | 1.72 | 0.34 | % | |||||||
Class B Shares | 1,000.00 | 1,019.55 | 5.50 | 1.09 | % | |||||||
Class C Shares | 1,000.00 | 1,019.50 | 5.55 | 1.10 | % | |||||||
Institutional Shares | 1,000.00 | 1,024.55 | 0.46 | 0.09 | % | |||||||
Capital Manager Equity Fund | ||||||||||||
Class A Shares | 1,000.00 | 1,023.20 | 1.82 | 0.36 | % | |||||||
Class B Shares | 1,000.00 | 1,019.45 | 5.60 | 1.11 | % | |||||||
Class C Shares | 1,000.00 | 1,018.90 | 6.16 | 1.22 | % | |||||||
Institutional Share | 1,000.00 | 1,024.45 | 0.56 | 0.11 | % | |||||||
48
Schedule of Portfolio Investments
September 30, 2008
| Shares | Fair Value | ||||||
| COMMON STOCKS (95.2%) | |||||||
Consumer Discretionary (14.0%) | |||||||
| 563,252 | Comcast Corp., Class A | $ | 11,056,637 | ||||
| 625,799 | KB Home(h) | 12,315,724 | |||||
| 137,158 | Target Corp.(h) | 6,727,600 | |||||
| 94,341 | Tiffany & Co.(h) | 3,350,993 | |||||
| 282,296 | Walt Disney Co. (The) | 8,663,664 | |||||
| 42,114,618 | |||||||
Consumer Staples (18.0%) | |||||||
| 159,512 | Clorox Co. (The) | 9,999,807 | |||||
| 460,114 | Kraft Foods, Inc., Class A | 15,068,733 | |||||
| 239,672 | Procter & Gamble Co. | 16,702,742 | |||||
| 206,172 | Wal-Mart Stores, Inc. | 12,347,641 | |||||
| 54,118,923 | |||||||
Energy (10.0%) | |||||||
| 126,047 | Anadarko Petroleum Corp | 6,114,540 | |||||
| 141,646 | ConocoPhillips | 10,375,570 | |||||
| 174,999 | Exxon Mobil Corp | 13,590,422 | |||||
| 30,080,532 | |||||||
Financials (15.1%) | |||||||
| 1,364 | Berkshire Hathaway, Inc. Class B(a) | 5,994,780 | |||||
| 297,127 | JPMorgan Chase & Co. | 13,875,831 | |||||
| 553,426 | Progressive Corp. (The) | 9,629,612 | |||||
| 428,709 | Wells Fargo & Co. | 16,089,449 | |||||
| 45,589,672 | |||||||
Health Care (16.4%) | |||||||
| 71,275 | Eli Lilly & Co. | 3,138,238 | |||||
| 293,309 | Johnson & Johnson | 20,320,448 | |||||
| 238,780 | Medtronic, Inc. | 11,962,878 | |||||
| 343,015 | Merck & Co., Inc. | 10,825,553 | |||||
| 173,218 | Pfizer, Inc. | 3,194,140 | |||||
| 49,441,257 | |||||||
Industrials (2.7%) | |||||||
| 316,600 | General Electric Co. | 8,073,300 | |||||
Information Technology (18.0%) | |||||||
| 251,897 | Cisco Systems, Inc.(a) | 5,682,797 | |||||
| 430,248 | Dell, Inc.(a) | 7,090,487 | |||||
| 353,681 | eBay, Inc.(a) | 7,915,381 | |||||
| 415,355 | Intel Corp. | 7,779,599 | |||||
| 391,300 | Microsoft Corp. | 10,443,797 | |||||
| 280,096 | QUALCOMM, Inc. | 12,035,725 | |||||
| 192,944 | Yahoo!, Inc.(a) | 3,337,931 | |||||
| 54,285,717 | |||||||
| Materials (1.0%) | |||||||
| 128,226 | Alcoa, Inc. | 2,895,343 | |||||
Total Common Stocks | 286,599,362 | ||||||
| INVESTMENT COMPANY (5.0%) | |||||||
| 14,988,918 | Federated Treasury Obligations Fund, Institutional Shares | 14,988,918 | |||||
Total Investment Company | 14,988,918 | ||||||
| Principal Amount | |||||||
| SECURITIES HELD AS COLLATERAL FOR SECURITIES ON LOAN (4.1%) | |||||||
| $ | 12,822,512 | Pool of Various Securities | 12,475,482 | ||||
Total Securities Held as Collateral for Securities on Loan | 12,475,482 | ||||||
| | Total Investments — 104.3% (Cost $290,079,537) | 314,063,762 | |||||
| Net Other Assets (Liabilities) — (4.3)% | (12,953,086 | ) | |||||
| NET ASSETS — 100.0% | $ | 301,110,676 | |||||
See footnote legend to Schedules of Portfolio Investments.
See accompanying notes to the financial statements.
49
Schedule of Portfolio Investments
September 30, 2008
| Shares | Fair Value | ||||||
| COMMON STOCKS (93.2%) | |||||||
Consumer Discretionary (17.7%) | |||||||
| 493,250 | Chico’s FAS, Inc.(a)(h) | $ | 2,698,077 | ||||
| 425,350 | EarthLink, Inc.(a)(h) | 3,615,475 | |||||
| 84,950 | Gannett Co., Inc.(h) | 1,436,504 | |||||
| 91,550 | International Speedway Corp., Class A | 3,562,211 | |||||
| 855,300 | Interpublic Group of Cos., Inc.(a)(h) | 6,628,575 | |||||
| 125,300 | Kohl’s Corp.(a)(h) | 5,773,824 | |||||
| 213,700 | Liz Claiborne, Inc.(h) | 3,511,091 | |||||
| 110,350 | R.H. Donnelley Corp.(a)(h) | 219,597 | |||||
| 292,130 | Select Comfort Corp.(a)(h) | 482,014 | |||||
| 90,850 | Universal Technical Institute, Inc.(a)(h) | 1,549,901 | |||||
| 216,900 | Viacom, Inc., Class B(a)(h) | 5,387,796 | |||||
| 34,865,065 | |||||||
Financial Services (39.0%) | |||||||
| 83,000 | Alliance Data Systems Corp.(a)(h) | 5,260,540 | |||||
| 68,000 | Annaly Capital Management, Inc., REIT | 914,600 | |||||
| 86,800 | Aon Corp. | 3,902,528 | |||||
| 140,500 | Assured Guaranty, Ltd.(h) | 2,284,530 | |||||
| 204,602 | Endurance Specialty Holdings, Ltd. | 6,326,294 | |||||
| 201,750 | Fair Isaac Corp.(h) | 4,650,338 | |||||
| 192,097 | Fidelity National Financial, Inc., Class A(h) | 2,823,826 | |||||
| 230,005 | Fidelity National Information Services, Inc. | 4,245,892 | |||||
| 54,000 | Jefferies Group Inc. | 1,209,600 | |||||
| 155,100 | Leucadia National Corp. | 7,047,744 | |||||
| 217,050 | Marshall & Ilsley Corp.(h) | 4,373,558 | |||||
| 190,600 | MBIA, Inc.(h) | 2,268,140 | |||||
| 152,390 | Mercury General Corp.(h) | 8,343,352 | |||||
| 267,050 | National City Corp.(h) | 467,338 | |||||
| 97,700 | Piper Jaffray Cos.(a)(h) | 4,225,525 | |||||
| 73,990 | StanCorp Financial Group, Inc.(h) | 3,847,480 | |||||
| 408,750 | Synovus Financial Corp.(h) | 4,230,562 | |||||
| 195,100 | Waddell & Reed Financial, Inc., Class A | 4,828,725 | |||||
| 162,900 | Willis Group Holdings, Ltd. | 5,255,154 | |||||
| 76,505,726 | |||||||
Health Care (12.5%) | |||||||
| 18,554 | Covidien, Ltd. | 997,463 | |||||
| 110,550 | Genzyme Corp.(a) | 8,942,390 | |||||
| 217,342 | IMS Health, Inc.(h) | 4,109,937 | |||||
| 347,150 | King Pharmaceuticals, Inc.(a)(h) | 3,325,697 | |||||
| 109,850 | Watson Pharmaceuticals, Inc.(a)(h) | 3,130,725 | |||||
| 61,950 | Zimmer Holdings, Inc.(a) | 3,999,492 | |||||
| 24,505,704 | |||||||
Materials & Processing (3.0%) | |||||||
| 265,025 | Valspar Corp.(h) | 5,907,407 | |||||
Other Energy (1.8%) | |||||||
| 70,200 | Forest Oil Corp.(a) | 3,481,920 | |||||
Producer Durables (2.1%) | |||||||
| 532,350 | Axcelis Technologies, Inc.(a)(h) | 904,995 | |||||
| 101,800 | Lexmark International, Inc., Class A(a)(h) | 3,315,626 | |||||
| 4,220,621 | |||||||
Technology (17.1%) | |||||||
| 158,400 | Affiliated Computer Services, Inc., Class A(a)(h) | 8,019,792 | |||||
| 100,350 | BMC Software, Inc.(a)(h) | 2,873,020 | |||||
| 406,960 | CA, Inc.(h) | 8,122,922 | |||||
| 89,100 | Computer Sciences Corp.(a) | 3,580,929 | |||||
| 126,000 | CSG Systems International, Inc.(a)(h) | 2,208,780 | |||||
| 141,700 | Progress Software Corp.(a) | 3,682,783 | |||||
| 252,600 | Synopsys, Inc.(a) | 5,039,370 | |||||
| 33,527,596 | |||||||
Total Common Stocks | 183,014,039 | ||||||
| EXCHANGE TRADED FUNDS (3.1%) | |||||||
| 154,400 | iShares Russell MidCap Value Index Fund | 6,055,568 | |||||
Total Exchange Traded Funds | 6,055,568 | ||||||
| INVESTMENT COMPANY (4.1%) | |||||||
| 8,055,375 | Federated Treasury Obligations Fund, Institutional Shares | 8,055,375 | |||||
Total Investment Company | 8,055,375 | ||||||
| Principal Amount | |||||||
| SECURITIES HELD AS COLLATERAL FOR SECURITIES ON LOAN (14.9%) | |||||||
| $ | 29,904,758 | Pool of Various Securities | 29,250,879 | ||||
Total Securities Held as Collateral for Securities on Loan | 29,250,879 | ||||||
| | Total Investments — 115.3% (Cost $255,297,212) | 226,375,861 | |||||
| Net Other Assets (Liabilities) — (15.3)% | (30,003,983 | ) | |||||
| NET ASSETS — 100.0% | $ | 196,371,878 | |||||
See footnote legend to Schedules of Portfolio Investments.
See accompanying notes to the financial statements.
50
Schedule of Portfolio Investments
September 30, 2008
| Shares | Fair Value | ||||||
| COMMON STOCKS (66.5%) | |||||||
Consumer Discretionary (10.4%) | |||||||
| 156,000 | Burger King Holdings, Inc. | $ | 3,831,360 | ||||
| 74,730 | DeVry, Inc. | 3,702,124 | |||||
| 100,500 | Guess?, Inc. | 3,496,395 | |||||
| 109,000 | Urban Outfitters, Inc.(a) | 3,473,830 | |||||
| 74,500 | Warnaco Group, Inc. (The)(a)(h) | 3,374,105 | |||||
| 17,877,814 | |||||||
Consumer Staples (2.3%) | |||||||
| 51,000 | Chattem, Inc.(a) | 3,987,180 | |||||
Energy (7.8%) | |||||||
| 48,000 | Alliance Resource Partners LP(h) | 1,512,960 | |||||
| 44,000 | Cameron International Corp.(a) | 1,695,760 | |||||
| 16,300 | Core Laboratories N.V. | 1,651,516 | |||||
| 156,500 | ION Geophysical Corp.(a) | 2,220,735 | |||||
| 36,000 | National Oilwell Varco, Inc.(a) | 1,808,280 | |||||
| 75,000 | Southwestern Energy Co.(a) | 2,290,500 | |||||
| 19,500 | Transocean, Inc.(a) | 2,141,880 | |||||
| 13,321,631 | |||||||
Financials (6.0%) | |||||||
| 42,000 | AllianceBernstein Holding LP(h) | 1,554,420 | |||||
| 6,900 | CME Group, Inc. | 2,563,419 | |||||
| 196,000 | Hudson City Bancorp, Inc.(h) | 3,616,200 | |||||
| 86,500 | Nasdaq OMX Group, Inc. (The)(a) | 2,644,305 | |||||
| 10,378,344 | |||||||
Health Care (13.4%) | |||||||
| 65,000 | Alexion Pharmaceuticals, Inc.(a)(h) | 2,554,500 | |||||
| 54,000 | Amedisys, Inc.(a)(h) | 2,628,180 | |||||
| 41,690 | Celgene Corp.(a) | 2,638,144 | |||||
| 38,800 | Covance, Inc.(a)(h) | 3,430,308 | |||||
| 65,465 | Express Scripts, Inc.(a)(h) | 4,832,626 | |||||
| 56,000 | Illumina, Inc.(a) | 2,269,680 | |||||
| 8,825 | Intuitive Surgical, Inc.(a)(h) | 2,126,649 | |||||
| 53,000 | NuVasive, Inc.(a) | 2,614,490 | |||||
| 23,094,577 | |||||||
Industrials (15.2%) | |||||||
| 40,000 | Bucyrus International, Inc. | 1,787,200 | |||||
| 151,315 | Corrections Corp. of America(a) | 3,760,177 | |||||
| 37,500 | Energy Conversion Devices, Inc.(a) | 2,184,375 | |||||
| 102,000 | EnerSys(a)(h) | 2,010,420 | |||||
| 18,800 | Flowserve Corp. | 1,668,876 | |||||
| 40,800 | Fluor Corp. | 2,272,560 | |||||
| 48,000 | FTI Consulting, Inc.(a) | 3,467,520 | |||||
| 81,750 | J.B. Hunt Transport Services, Inc. | 2,727,998 | |||||
| 93,000 | Kansas City Southern(a)(h) | 4,125,480 | |||||
| 36,750 | Stericycle, Inc.(a) | 2,164,942 | |||||
| 26,169,548 | |||||||
Information Technology (10.7%) | |||||||
| 10,995 | Baidu.com, Inc., ADR(a) | 2,729,289 | |||||
| 38,675 | Equinix, Inc.(a)(h) | 2,686,365 | |||||
| 65,500 | Micros Systems, Inc.(a)(h) | 1,746,230 | |||||
| 197,635 | Microsemi Corp.(a) | 5,035,740 | |||||
| 88,935 | Sina China Corp.(a) | 3,130,512 | |||||
| 95,000 | VistaPrint, Ltd.(a)(h) | 3,119,800 | |||||
| 18,447,936 | |||||||
Materials (0.7%) | |||||||
| 23,000 | Cleveland-Cliffs, Inc. | 1,217,620 | |||||
Total Common Stocks | 114,494,650 | ||||||
| EXCHANGE TRADED FUNDS (28.8%) | |||||||
| 574,875 | iShares Russell MidCap Growth Index Fund | 24,966,821 | |||||
| 300,000 | iShares Russell Midcap Index Fund(h) | 24,648,000 | |||||
Total Exchange Traded Funds | 49,614,821 | ||||||
| INVESTMENT COMPANY (7.0%) | |||||||
| 12,134,891 | Federated Treasury Obligations Fund, Institutional Shares | 12,134,891 | |||||
Total Investment Company | 12,134,891 | ||||||
| Principal Amount | |||||||
| SECURITIES HELD AS COLLATERAL FOR SECURITIES ON LOAN (11.5%) | |||||||
| $ | 20,221,387 | Pool of Various Securities | 19,788,110 | ||||
Total Securities Held as Collateral for Securities on Loan | 19,788,110 | ||||||
|
| Total Investments — 113.8% (Cost $209,427,681) | 196,032,472 | |||||
| Net Other Assets (Liabilities) — (13.8)% | (23,745,905 | ) | |||||
| NET ASSETS —100.0% | $ | 172,286,567 | |||||
See footnote legend to Schedules of Portfolio Investments.
See accompanying notes to the financial statements.
51
Schedule of Portfolio Investments
September 30, 2008
| Shares | Fair Value | ||||||
| COMMON STOCKS (81.7%) | |||||||
Consumer Discretionary (9.4%) | |||||||
| 24,500 | Buffalo Wild Wings, Inc.(a) | $ | 985,880 | ||||
| 28,152 | CEC Entertainment, Inc.(a) | 934,647 | |||||
| 20,535 | P.F. Chang’s China Bistro, Inc.(a)(h) | 483,394 | |||||
| 17,000 | Polaris Industries, Inc.(h) | 773,330 | |||||
| 18,600 | Warnaco Group, Inc. (The)(a)(h) | 842,394 | |||||
| 4,019,645 | |||||||
Consumer Staples (4.9%) | |||||||
| 12,500 | Chattem, Inc.(a)(h) | 977,250 | |||||
| 30,500 | Sanderson Farms, Inc.(h) | 1,120,570 | |||||
| 2,097,820 | |||||||
Energy (4.8%) | |||||||
| 11,500 | Alliance Resource Partners LP | 362,480 | |||||
| 12,375 | Forest Oil Corp.(a) | 613,800 | |||||
| 36,300 | ION Geophysical Corp.(a) | 515,097 | |||||
| 41,000 | Pioneer Drilling Co.(a)(h) | 545,300 | |||||
| 2,036,677 | |||||||
Financials (5.1%) | |||||||
| �� | 58,952 | Dime Community Bancshares | 897,249 | ||||
| 85,186 | NewAlliance Bancshares, Inc.(h) | 1,280,346 | |||||
| 2,177,595 | |||||||
Health Care (21.1%) | |||||||
| 13,000 | Amedisys, Inc.(a)(h) | 632,710 | |||||
| 97,225 | American Medical Systems Holdings, Inc.(a)(h) | 1,726,716 | |||||
| 29,500 | CardioNet, Inc.(a) | 736,320 | |||||
| 15,000 | Haemonetics Corp.(a) | 925,800 | |||||
| 81,000 | Healthspring, Inc.(a) | 1,713,960 | |||||
| 13,300 | NuVasive, Inc.(a) | 656,089 | |||||
| 47,500 | SonoSite, Inc.(a) | 1,491,500 | |||||
| 23,000 | West Pharmaceutical Services, Inc.(h) | 1,122,860 | |||||
| 9,005,955 | |||||||
Industrials (17.8%) | |||||||
| 28,000 | Arkansas Best Corp.(h) | 943,320 | |||||
| 55,995 | Celadon Group, Inc.(a) | 642,262 | |||||
| 19,395 | Curtiss-Wright Corp.(h) | 881,503 | |||||
| 9,150 | Energy Conversion Devices, Inc.(a)(h) | 532,987 | |||||
| 25,000 | EnerSys(a) | 492,750 | |||||
| 15,000 | Kaydon Corp.(h) | 675,900 | |||||
| 81,000 | LaBarge, Inc.(a) | 1,219,860 | |||||
| 17,000 | Moog, Inc., Class A(a) | 728,960 | |||||
| 22,530 | RBC Bearings, Inc.(a) | 759,036 | |||||
| 17,275 | Regal-Beloit Corp. | 734,533 | |||||
| 7,611,111 | |||||||
Information Technology (14.0%) | |||||||
| 26,600 | Cognex Corp.(h) | 536,256 | |||||
| 9,475 | Equinix, Inc.(a)(h) | 658,133 | |||||
| 39,500 | Microsemi Corp.(a)(h) | 1,006,460 | |||||
| 74,350 | Perot Systems Corp., Class A(a) | 1,289,973 | |||||
| 41,595 | Silicon Laboratories, Inc.(a) | 1,276,966 | |||||
| 12,500 | Sina China Corp.(a) | 440,000 | |||||
| 23,750 | VistaPrint, Ltd.(a) | 779,950 | |||||
| 5,987,738 | |||||||
Materials (2.4%) | |||||||
| 49,000 | Calgon Carbon Corp.(a)(h) | 997,640 | |||||
Utilities (2.2%) | |||||||
| 8,723 | Laclede Group, Inc. (The)(h) | 422,978 | |||||
| 15,056 | UIL Holdings Corp.(h) | 516,873 | |||||
| 939,851 | |||||||
Total Common Stocks | 34,874,032 | ||||||
| EXCHANGE TRADED FUNDS (12.8%) | |||||||
| 27,335 | iShares Dow Jones US Regional Banks Index Fund | 876,907 | |||||
| 68,150 | iShares Russell 2000 Value Index Fund(h) | 4,582,406 | |||||
Total Exchange Traded Funds | 5,459,313 | ||||||
| INVESTMENT COMPANY (1.3%) | |||||||
| 562,254 | Federated Treasury Obligations Fund, Institutional Shares | 562,254 | |||||
Total Investment Company | 562,254 | ||||||
| Principal Amount | |||||||
| SECURITIES HELD AS COLLATERAL FOR SECURITIES ON LOAN (24.8%) | |||||||
| $ | 10,776,613 | Pool of Various Securities | 10,581,863 | ||||
Total Securities Held as Collateral for Securities on Loan | 10,581,863 | ||||||
| | Total Investments — 120.6% (Cost $48,605,238) | 51,477,462 | |||||
| Net Other Assets (Liabilities) — (20.6)% | (8,790,180 | ) | |||||
| NET ASSETS — 100.0% | $ | 42,687,282 | |||||
See footnote legend to Schedules of Portfolio Investments.
See accompanying notes to the financial statements.
52
BB&T International Equity Fund
Schedule of Portfolio Investments
September 30, 2008
| Shares | Fair Value | ||||
| COMMON STOCKS (82.0%) | |||||
Australia (1.3%) | |||||
| 2,335 | BHP Billiton, Ltd. | $ | 60,408 | ||
| 258,477 | Macquarie Airports(h) | 568,260 | |||
| 21,422 | Newcrest Mining, Ltd. | 445,105 | |||
| 6,861 | Rio Tinto, Ltd. | 462,310 | |||
| 1,536,083 | |||||
Austria (1.9%) | |||||
| 6,808 | Erste Group Bank AG(h) | 338,932 | |||
| 5,603 | Flughafen Wien AG | 353,227 | |||
| 10,886 | OMV AG | 458,845 | |||
| 7,442 | Raiffeisen International Bank Holding AG | 537,482 | |||
| 11,958 | Telekom Austria AG | 210,398 | |||
| 6,071 | Vienna Insurance Group | 303,075 | |||
| 1 | Wienerberger AG | 4 | |||
| 2,201,963 | |||||
Belgium (1.0%) | |||||
| 668 | Groupe Bruxelles Lambert SA | 57,654 | |||
| 5,628 | InBev NV | 334,835 | |||
| 3,033 | KBC Ancora | 199,867 | |||
| 6,152 | KBC Groep NV | 535,170 | |||
| 1,127,526 | |||||
Bermuda (0.1%) | |||||
| 1,664 | Central European Media Enterprises, Ltd., Class A(a) | 108,826 | |||
Canada (1.9%) | |||||
| 26,688 | Barrick Gold Corp | 977,243 | |||
| 20,386 | Eldorado Gold Corp.(a) | 127,191 | |||
| 45,962 | Ivanhoe Mines, Ltd.(a) | 278,558 | |||
| 24,055 | Kinross Gold Corp. | 386,281 | |||
| 1,104 | Potash Corp. of Saskatchewan | 143,123 | |||
| 1,866 | Research In Motion, Ltd.(a) | 127,448 | |||
| 8,485 | Talisman Energy, Inc. | 119,751 | |||
| 2,159,595 | |||||
China (0.4%) | |||||
| 506,464 | Beijing Capital International Airport Co., Ltd., Class H(h) | 418,326 | |||
Cyprus (0.1%) | |||||
| 12,912 | Bank of Cyprus Public Co., Ltd. | 102,686 | |||
Czech Republic (3.4%) | |||||
| 17,317 | Komercni Banka AS | 3,912,795 | |||
Denmark (1.3%) | |||||
| 13,087 | Carlsberg AS, Class B | 997,798 | |||
| 743 | FLSmidth & Co. AS | 37,728 | |||
| 8,656 | Novo Nordisk AS, Class B | 448,747 | |||
| 1,484,273 | |||||
Finland (1.1%) | |||||
| 14,323 | Fortum OYJ | 480,668 | |||
| 2,322 | Kemira OYJ | 27,498 | |||
| 17,063 | Nokia OYJ | 318,249 | |||
| 6,245 | Orion OYJ, Class B | 105,804 | |||
| 2,508 | Outotec OYJ | 67,525 | |||
| 4,455 | Pohjola Bank PLC | 64,924 | |||
| 21,310 | Stora Enso OYJ, R Shares | 208,221 | |||
| 1,272,889 | |||||
France (10.6%) | |||||
| 988 | Accor SA | 52,765 | |||
| 8,744 | Aeroports de Paris | 721,964 | |||
| 9,634 | Air Liquide | 1,058,666 | |||
| 1,416 | Alstom SA | 107,487 | |||
| 7,940 | AXA SA | 259,910 | |||
| 4,251 | Bouygues | 192,572 | |||
| 251 | Casino Guichard Perrachon SA | 22,397 | |||
| 7,819 | Cie de Saint-Gobain | 404,464 | |||
| 655 | EDF Energies Nouvelles SA | 32,637 | |||
| 6,714 | Electricite de France (EDF) | 485,511 | |||
| 1,619 | Eurazeo | 136,872 | |||
| 25,224 | France Telecom SA | 707,521 | |||
| 18,431 | GDF Suez | 958,895 | |||
| 8,359 | Groupe Danone | 592,918 | |||
| 3,400 | JC Decaux SA | 74,453 | |||
| 3,457 | Lafarge SA | 363,980 | |||
| 9,441 | LVMH Moet Hennessy Louis Vuitton SA | 828,858 | |||
| 10,434 | Pernod-Ricard SA | 919,139 | |||
| 4,618 | PPR | 413,208 | |||
| 1,078 | Remy Cointreau SA | 50,838 | |||
| 14,968 | Sanofi-Aventis SA | 984,077 | |||
| 177 | Schneider Electric SA | 15,200 | |||
| 4,953 | Suez Environnement SA(a) | 121,955 | |||
| 14 | Suez SA | 688 | |||
| 30,125 | Total SA | 1,830,087 | |||
| 12,272 | Vinci SA | 578,207 | |||
| 5,515 | Vivendi | 172,899 | |||
| 12,088,168 | |||||
Germany (9.3%) | |||||
| 806 | Adidas AG | 43,136 | |||
| 22,336 | Bayer AG | 1,639,611 | |||
| 797 | Continental AG(a) | 79,214 | |||
| 13,323 | Daimler AG | 672,737 | |||
| 1,772 | Deutsche Boerse AG | 164,111 | |||
| 7,172 | Deutsche Post AG | 150,450 | |||
| 17,757 | Deutsche Telekom AG | 269,804 | |||
| 28,180 | E.ON AG | 1,431,247 | |||
| 30,382 | Fraport AG Frankfurt Airport Services Worldwide(h) | 1,801,247 | |||
| 16,644 | Fresenius Medical Care AG & Co. KGaA | 859,954 | |||
| 10,456 | Fresenius SE | 767,395 | |||
| 2,026 | Hamburger Hafen und Logistik AG | 120,741 | |||
| 3,534 | Henkel AG & Co KGaA | 108,287 | |||
| 259 | MAN AG | 17,618 | |||
| 1,220 | Merck KGaA | 130,104 | |||
| 9,406 | Metro AG | 471,807 | |||
| 19,703 | Rhoen Klinikum AG | 558,834 | |||
| 1,880 | RWE AG | 180,427 | |||
| 12,183 | Siemens AG | 1,145,897 | |||
| 10,612,621 | |||||
Greece (0.4%) | |||||
| 93,027 | Alapis Holding Industrial & Commercial SA | 197,557 | |||
| 11,838 | Hellenic Telecommunications Organization SA | 212,787 | |||
| 410,344 | |||||
Hong Kong (0.5%) | |||||
| 77,564 | China Merchants Holdings International Co., Ltd. | 248,804 | |||
| 134,192 | Galaxy Entertainment Group, Ltd.(a) | 26,581 | |||
Continued
53
BB&T International Equity Fund
Schedule of Portfolio Investments — (continued)
September 30, 2008
| Shares | Fair Value | ||||
| COMMON STOCKS — (continued) | |||||
Hong Kong — (continued) | |||||
| 464,873 | GOME Electrical Appliances Holdings, Ltd. | $ | 137,249 | ||
| 22,341 | Melco Crown Entertainment, Ltd., ADR(a) | 89,141 | |||
| 388,346 | Shun Tak Holdings, Ltd. | 133,719 | |||
| 635,494 | |||||
Hungary (3.5%) | |||||
| 107,027 | OTP Bank Nyrt(a) | 3,873,238 | |||
| 792 | Richter Gedeon Nyrt | 144,972 | |||
| 4,018,210 | |||||
India (1.6%) | |||||
| 30,886 | State Bank of India, Ltd., GDR | 1,868,603 | |||
Ireland (0.3%) | |||||
| 8,887 | CRH PLC | 189,875 | |||
| 66,084 | Dragon Oil PLC(a) | 208,957 | |||
| 398,832 | |||||
Italy (2.3%) | |||||
| 27,221 | Banca Popolare di Milano Scarl | 231,345 | |||
| 16,792 | Buzzi Unicem SpA | 258,021 | |||
| 28,354 | Credito Emiliano SpA | 242,559 | |||
| 20,627 | Enel SpA | 172,187 | |||
| 5,098 | Geox SpA | 49,868 | |||
| 180,326 | Intesa Sanpaolo SpA | 991,715 | |||
| 118,971 | Intesa Sanpaolo SpA, Non-Convertible Saving Shares | 567,580 | |||
| 3,471 | Italcementi SpA | 42,994 | |||
| 453 | Lottomatica SpA | 11,862 | |||
| 3,059 | Unione di Banche Italiane Scpa | 67,012 | |||
| 2,635,143 | |||||
Japan (6.7%) | |||||
| 2,890 | Acom Co., Ltd. | 98,769 | |||
| 1,800 | Aisin Seiki Co., Ltd. | 44,082 | |||
| 4,000 | Bank of Kyoto, Ltd. (The) | 40,825 | |||
| 19,922 | Bank of Yokohama, Ltd. (The) | 98,682 | |||
| 7,286 | Canon, Inc. | 276,219 | |||
| 45 | Central Japan Railway Co. | 424,329 | |||
| 8,000 | Chiba Bank, Ltd. (The) | 41,945 | |||
| 1,400 | Daikin Industries, Ltd. | 47,219 | |||
| 4,000 | Daiwa Securities Group, Inc. | 29,135 | |||
| 4,231 | Denso Corp. | 103,777 | |||
| 54 | East Japan Railway Co. | 402,712 | |||
| 1,700 | Eisai Co., Ltd. | 66,385 | |||
| 1,625 | Fanuc, Ltd. | 122,252 | |||
| 26 | Fuji Media Holdings, Inc. | 33,536 | |||
| 8,000 | Gunma Bank, Ltd. (The) | 45,619 | |||
| 8,206 | Honda Motor Co., Ltd. | 248,911 | |||
| 2,100 | Ibiden Co., Ltd. | 51,123 | |||
| 3,000 | Itochu Corp. | 18,073 | |||
| 70 | Japan Tobacco, Inc. | 263,836 | |||
| 1,180 | JFE Holdings, Inc. | 36,599 | |||
| 2,700 | JS Group Corp. | 33,990 | |||
| 42 | KDDI Corp. | 237,916 | |||
| 27,700 | Komatsu, Ltd. | 453,491 | |||
| 4,202 | Kubota Corp. | 26,504 | |||
| 1,300 | Kyocera Corp. | 98,677 | |||
| 1,900 | Makita Corp. | 38,922 | |||
| 2,500 | Mitsubishi Corp. | 52,150 | |||
| 14,000 | Mitsubishi Electric Corp. | 94,459 | |||
| 39,500 | Mitsubishi UFJ Financial Group, Inc. | 344,450 | |||
| 3,000 | Mitsui & Co., Ltd. | 37,243 | |||
| 2,223 | Mitsui Fudosan Co., Ltd. | 42,953 | |||
| 18 | Mizuho Financial Group, Inc. | 78,717 | |||
| 600 | Nidec Corp. | 36,911 | |||
| 1,180 | Nintendo Co., Ltd. | 500,525 | |||
| 21,111 | Nippon Electric Glass Co., Ltd. | 191,233 | |||
| 12 | Nippon Telegraph & Telephone Corp. | 53,561 | |||
| 3,200 | Nissan Motor Co., Ltd. | 21,638 | |||
| 3,213 | Nomura Holdings, Inc. | 41,930 | |||
| 167 | NTT DoCoMo, Inc. | 267,316 | |||
| 779 | Olympus Corp. | 22,768 | |||
| 10,408 | Panasonic Corp. | 179,429 | |||
| 3,200 | Promise Co., Ltd.(h) | 61,921 | |||
| 3,000 | Ricoh Co., Ltd. | 42,183 | |||
| 2,400 | Seven & I Holdings Co., Ltd. | 68,952 | |||
| 3,000 | Sharp Corp. | 32,781 | |||
| 1,500 | Shin-Etsu Chemical Co., Ltd. | 71,326 | |||
| 5,000 | Shizuoka Bank, Ltd. (The) | 49,228 | |||
| 8,566 | Sony Corp. | 264,155 | |||
| 2,700 | Stanley Electric Co., Ltd. | 39,609 | |||
| 9,998 | Sumitomo Heavy Industries, Ltd. | 47,668 | |||
| 19,000 | Sumitomo Metal Industries, Ltd. | 58,903 | |||
| 29 | Sumitomo Mitsui Financial Group, Inc. | 181,820 | |||
| 11,248 | Sumitomo Trust & Banking Co., Ltd. (The) | 74,939 | |||
| 3,000 | Suruga Bank, Ltd. | 34,919 | |||
| 7,700 | Suzuki Motor Corp. | 142,675 | |||
| 2,500 | Takeda Pharmaceutical Co., Ltd. | 125,876 | |||
| 16,854 | Toyota Motor Corp. | 720,551 | |||
| 3,647 | Yamada Denki Co., Ltd. | 276,438 | |||
| 7,642,755 | |||||
Korea (South) (0.3%) | |||||
| 733 | Samsung Electronics Co., Ltd. | 335,900 | |||
Mexico (0.7%) | |||||
| 198,992 | Fomento Economico Mexicano SAB de CV | 761,106 | |||
Netherlands (4.0%) | |||||
| 5,074 | Heineken NV | 203,859 | |||
| 25,243 | Koninklijke KPN NV | 364,557 | |||
| 1,118 | Koninklijke Vopak NV | 52,597 | |||
| 2,918 | Reed Elsevier NV, Class A | 43,288 | |||
| 59,311 | Royal Dutch Shell PLC, Class A | 1,747,428 | |||
| 5,434 | TNT NV | 150,558 | |||
| 70,997 | Unilever NV-CVA | 1,998,482 | |||
| 4,560,769 | |||||
New Zealand (0.2%) | |||||
| 135,949 | Auckland International Airport, Ltd. | 178,648 | |||
Norway (0.1%) | |||||
| 16,657 | DnB NOR ASA | 129,222 | |||
Poland (5.8%) | |||||
| 1,122 | Bank BPH SA(a) | 32,574 | |||
| 17,082 | Bank Handlowy w Warszawie SA | 453,118 | |||
| 10,541 | Bank Millennium SA | 27,907 | |||
| 35,094 | Bank Pekao SA | 2,533,076 | |||
| 9,499 | Bank Zachodni WBK SA | 611,662 | |||
| 1,182 | BRE Bank SA(a) | 155,918 | |||
| 37,049 | Polskie Gornictwo Naftowe I Gazownictwo SA | 51,095 | |||
| 108,311 | Powszechna Kasa Oszczednosci Bank Polski SA | 1,985,116 | |||
Continued
54
BB&T International Equity Fund
Schedule of Portfolio Investments — (continued)
September 30, 2008
| Shares | Fair Value | ||||
| COMMON STOCKS — (continued) | |||||
Poland — (continued) | |||||
| 77,337 | Telekomunikacja Polska SA | $ | 737,674 | ||
| 6,588,140 | |||||
Portugal (0.7%) | |||||
| 15,543 | Energias de Portugal SA | 65,231 | |||
| 84,255 | Jeronimo Martins SGPS SA | 718,565 | |||
| 783,796 | |||||
Russia (1.0%) | |||||
| 18,189 | Federal Grid Co., Unified Energy System JSC, GDR(a)(e) | 59,114 | |||
| 900,000 | Holding MRSK OAO(a) | 54,000 | |||
| 3,762 | Inter Rao Ues OAO, GDR(a)(e) | 15,048 | |||
| 1,251 | Kuzbassenergo OJSC, GDR(a)(e) | 2,502 | |||
| 6,039 | Mosenergo OAO, GDR(a)(e) | 17,758 | |||
| 1,951,105 | Novorossiysk Commercial Sea Port | 224,377 | |||
| 17,316 | OGK-1 OAO, GDR(a)(e) | 24,277 | |||
| 4,500 | OGK-2 OAO, GDR(a)(e) | 7,538 | |||
| 7,398 | OGK-3 OJSC, GDR(a)(e) | 11,685 | |||
| 5,247 | OGK-6 OAO, GDR(a)(e) | 10,258 | |||
| 100 | Open Investments JSC(a) | 15,229 | |||
| 16,991 | Pharmstandard, GDR(a)(d) | 294,794 | |||
| 1,480 | Polyus Gold Co., ADR | 22,496 | |||
| 900,000 | RAO Energy System of East OAO(a)(f) | 1,890 | |||
| 31,077 | RusHydro, GDR(a)(e) | 94,785 | |||
| 436 | Silvinit, Pfd | 161,320 | |||
| 10,784 | Sistema-Hals, GDR(a)(d) | 10,784 | |||
| 6,876 | TGK-1 OAO, GDR(a)(e) | 12,033 | |||
| 288 | TGK-14, GDR(a)(e) | 864 | |||
| 1,161 | TGK-2, GDR(a)(e) | 9,869 | |||
| 2,853 | TGK-4, GDR(a)(e) | 13,694 | |||
| 2,754 | TGK-6, GDR(a)(e) | 3,167 | |||
| 3,024 | TGK-9 OAO, GDR(a)(e) | 5,443 | |||
| 92,723 | URSA Bank, pfd(f) | 38,016 | |||
| 3,006 | Volga Territorial Generating Co., GDR(a) | 8,185 | |||
| 1,498 | Wimm-Bill-Dann Foods OJSC(a) | 51,871 | |||
| 3,096 | Yenisei Territorial Generating Co., OJSC, GDR(a)(e) | 2,786 | |||
| 1,173,783 | |||||
Spain (1.4%) | |||||
| 549 | Acciona SA | 83,673 | |||
| 20,515 | EDP Renovaveis SA(a) | 161,445 | |||
| 34,922 | Iberdrola Renovables(a)(h) | 152,591 | |||
| 2,603 | Inditex SA(h) | 110,142 | |||
| 48,068 | Telefonica SA | 1,142,937 | |||
| 1,650,788 | |||||
Sweden (0.7%) | |||||
| 7,137 | Getinge AB, Class B | 147,105 | |||
| 2,964 | Hennes & Mauritz AB, Class B | 121,363 | |||
| 919 | Modern Times Group AB, Class B | 33,106 | |||
| 18,678 | Nordea Bank AB | 222,995 | |||
| 13,226 | Svenska Cellulosa AB, Class B | 140,108 | |||
| 17,399 | TeliaSonera AB | 98,879 | |||
| 763,556 | |||||
Switzerland (7.8%) | |||||
| 18,007 | ABB, Ltd.(a) | 348,947 | |||
| 1,549 | BKW FMB Energie AG | 159,646 | |||
| 9,555 | Compagnie Financiere Richemont SA | 422,173 | |||
| 890 | Flughafen Zuerich AG | 287,010 | |||
| 5,725 | Holcim, Ltd. | 419,593 | |||
| 69,195 | Nestle SA | 2,990,438 | |||
| 1,670 | Nobel Biocare Holding AG | 55,859 | |||
| 33,018 | Novartis AG | 1,738,383 | |||
| 11,162 | Roche Holding AG | 1,747,321 | |||
| 106 | SGS SA | 124,752 | |||
| 1,668 | Swatch Group AG (The) | 307,888 | |||
| 4,624 | Swiss Reinsurance | 256,657 | |||
| 748 | Synthes, Inc. | 103,480 | |||
| 8,962,147 | |||||
Taiwan (0.0%) | |||||
| 1 | Cathay Financial Holding Co. Ltd., GDR(d) | 11 | |||
Ukraine (0.3%) | |||||
| 933,947 | Raiffeisen Bank Aval(a) | 80,049 | |||
| 3,129 | Ukrnafta Oil Co.(a) | 71,082 | |||
| 1,101,903 | Ukrsotsbank JSCB(a) | 84,681 | |||
| 33,222 | UkrTelecom, GDR(a) | 120,153 | |||
| 355,965 | |||||
United Kingdom (11.3%) | |||||
| 3,187 | AMEC PLC | 36,556 | |||
| 9,022 | Anglo American PLC | 304,759 | |||
| 21,459 | BAE Systems PLC | 158,193 | |||
| 12,060 | BHP Billiton PLC | 273,208 | |||
| 6,410 | British American Tobacco PLC | 209,496 | |||
| 103,855 | Cadbury PLC | 1,050,380 | |||
| 18,607 | Compass Group PLC | 115,400 | |||
| 127,310 | Diageo PLC | 2,171,830 | |||
| 72,901 | GlaxoSmithKline PLC | 1,579,224 | |||
| 23,662 | Imperial Tobacco Group PLC | 759,564 | |||
| 3,893 | Intertek Group PLC | 58,353 | |||
| 14,139 | National Grid PLC | 179,467 | |||
| 4,656 | Peter Hambro Mining PLC | 42,088 | |||
| 20,616 | Reckitt Benckiser Group PLC | 999,560 | |||
| 6,422 | Rio Tinto PLC | 403,038 | |||
| 46,154 | Rolls-Royce Group PLC(a) | 279,459 | |||
| 4,352 | Scottish & Southern Energy PLC | 110,895 | |||
| 81,992 | Smith & Nephew PLC | 865,949 | |||
| 204,462 | Tesco PLC | 1,422,024 | |||
| 591,057 | Vodafone Group PLC | 1,305,302 | |||
| 4,485 | William Hill PLC | 18,912 | |||
| 73,485 | WM Morrison Supermarkets PLC | 341,733 | |||
| 25,437 | WPP Group PLC | 205,748 | |||
| 12,891,138 | |||||
United States (0.0%) | |||||
| 2,421 | Dr Pepper Snapple Group, Inc.(a) | 64,105 | |||
Total Common Stocks | 93,834,206 | ||||
| EXCHANGE TRADED FUNDS (9.2%) | |||||
France (4.0%) | |||||
| 30,450 | Lyxor ETF CAC 40 Fund | 1,732,272 | |||
| 63,416 | Lyxor ETF DJ Euro Stoxx 50 Fund | 2,833,646 | |||
| 4,565,918 | |||||
Germany (1.3%) | |||||
| 18,364 | iShares DAX Fund (DE) | 1,425,005 | |||
Continued
55
BB&T International Equity Fund
Schedule of Portfolio Investments — (continued)
September 30, 2008
| Shares | Fair Value | |||||
| EXCHANGE TRADED FUNDS — (continued) | ||||||
Ireland (2.9%) | ||||||
| 77,300 | iShares DJ Euro Stoxx 50 Fund | $ | 3,319,091 | |||
Japan (1.0%) | ||||||
| 114,400 | Nomura TOPIX | 1,195,039 | ||||
Total Exchange Traded Funds | 10,505,053 | |||||
| RIGHTS/WARRANTS (0.2%) | ||||||
Romania (0.2%) | ||||||
| 49,162 | BRD-Group Societe Generale, Warrants, Expire 06/30/17(a)(d) | 208,513 | ||||
Russia (0.0%) | ||||||
| 9 | Unified Energy System Warrants, Expire 12/31/09(a)(e) | 40,638 | ||||
| 9 | Unified Energy System Warrants, Expire 12/31/09(a)(e) | 2,839 | ||||
| 9 | Unified Energy System Warrants, Expire 12/31/09(a)(e) | — | ||||
| 43,477 | ||||||
Total Rights/Warrants | 251,990 | |||||
| INVESTMENT COMPANY (4.9%) | ||||||
United States (4.9%) | ||||||
| 5,639,217 | Federated Treasury Obligations Fund, Institutional Shares | $ | 5,639,217 | |||
Total Investment Company | 5,639,217 | |||||
| Principal Amount | ||||||
| SECURITIES HELD AS COLLATERAL FOR SECURITIES ON LOAN (0.8%) | ||||||
| $ | 911,483 | Pool of Various Securities | 894,212 | |||
Total Securities Held as Collateral for Securities on Loan | 894,212 | |||||
|
| Total Investments — 97.1% (Cost $131,322,706) | 111,124,678 | ||||
| Net Other Assets (Liabilities) — 2.9% | 3,290,576 | |||||
| NET ASSETS — 100.0% | $ | 114,415,254 | ||||
Sector (unaudited) | Percentage of net assets | ||
Consumer Discretionary | 5.5 | % | |
Consumer Staples | 15.5 | % | |
Energy | 4.0 | % | |
Exchange Traded Fund | 9.2 | % | |
Financials | 19.7 | % | |
Health Care | 10.8 | % | |
Industrials | 9.4 | % | |
Information Technology | 1.7 | % | |
Investment Company | 5.0 | % | |
Materials | 6.1 | % | |
Telecommunication Services | 5.0 | % | |
Utilities | 4.4 | % | |
| 96.3 | |||
Forward Foreign Currency Contracts | Delivery Date | Contract Amount in Local Currency | Contract Amount in U.S. Dollar | Fair Value | Unrealized Appreciation/ (Depreciation) | |||||||||
Short | ||||||||||||||
Czech Koruna vs. U.S. Dollar | 10/22/2008 | 10,691,330 | $ | 644,755 | $ | 614,445 | $ | 30,310 | ||||||
Czech Koruna vs. U.S. Dollar | 12/09/2008 | 44,693,335 | 2,550,151 | 2,570,947 | (20,795 | ) | ||||||||
Euro vs. U.S. Dollar | 12/02/2008 | 1,057,896 | 1,542,074 | 1,493,968 | 48,106 | |||||||||
Euro vs. U.S. Dollar | 12/08/2008 | 9,402,456 | 13,455,440 | 13,278,914 | 176,525 | |||||||||
Polish Zloty vs. U.S. Dollar | 11/19/2008 | 2,987,267 | 1,309,574 | 1,238,311 | 71,262 | |||||||||
Polish Zloty vs. U.S. Dollar | 12/09/2008 | 12,032,094 | 4,908,696 | 4,984,855 | (76,158 | ) | ||||||||
Total Short Contracts | $ | 24,410,690 | $ | 24,181,440 | $ | 229,250 | ||||||||
Long | ||||||||||||||
Japanese Yen vs. U.S. Dollar | 11/10/2008 | 456,075,018 | $ | 4,222,917 | $ | 4,315,667 | $ | 92,750 | ||||||
Japanese Yen vs. U.S. Dollar | 12/19/2008 | 153,396,023 | 1,473,750 | 1,459,551 | (14,199 | ) | ||||||||
Japanese Yen vs. U.S. Dollar | 12/26/2008 | 520,283,253 | 4,965,625 | 4,956,095 | (9,530 | ) | ||||||||
Total Long Contracts | $ | 10,662,292 | $ | 10,731,313 | $ | 69,021 | ||||||||
See footnote legend to Schedules of Portfolio Investments.
See accompanying notes to the financial statements.
56
BB&T Special Opportunities Equity Fund
Schedule of Portfolio Investments
September 30, 2008
| Shares | Fair Value | ||||||
| COMMON STOCKS (97.7%) | |||||||
Consumer Discretionary (9.1%) | |||||||
| 831,000 | Comcast Corp., Class A | $ | 16,312,530 | ||||
| 812,000 | News Corp., Class A | 9,735,880 | |||||
| 227,500 | Yum! Brands, Inc.(g) | 7,418,775 | |||||
| 33,467,185 | |||||||
Consumer Staples (2.3%) | |||||||
| 528,970 | Smithfield Foods, Inc.(a)(g)(h) | 8,400,043 | |||||
Energy (16.1%) | |||||||
| 171,000 | Apache Corp.(g) | 17,831,880 | |||||
| 328,275 | Consol Energy, Inc.(h) | 15,064,540 | |||||
| 2,000 | Nabors Industries, Ltd.(a) | 49,840 | |||||
| 305,000 | Noble Corp. | 13,389,500 | |||||
| 512,000 | Weatherford International, Ltd.(a)(g) | 12,871,680 | |||||
| 59,207,440 | |||||||
Financials (7.2%) | |||||||
| 27,200 | Markel Corp.(a) | 9,560,800 | |||||
| 451,500 | Wells Fargo & Co.(g) | 16,944,795 | |||||
| 26,505,595 | |||||||
Health Care (20.3%) | |||||||
| 682,000 | Allscripts Healthcare Solutions, Inc.(a)(h) | 8,484,080 | |||||
| 10,000 | Coventry Health Care, Inc.(a)(h) | 325,500 | |||||
| 234,000 | McKesson Corp.(h) | 12,591,540 | |||||
| 377,000 | Medcath Corp.(a)(h) | 6,755,840 | |||||
| 322,000 | Teva Pharmaceutical Industries, Ltd., ADR(h) | 14,744,380 | |||||
| 528,000 | UnitedHealth Group, Inc. | 13,405,920 | |||||
| 321,200 | Varian Medical Systems, Inc.(a)(g)(h) | 18,350,155 | |||||
| 74,657,415 | |||||||
Industrials (7.6%) | |||||||
| 100,000 | L-3 Communications Holdings, Inc. | 9,832,000 | |||||
| 724,800 | Spirit Aerosystems Holdings, Inc., Class A(a) | 11,647,536 | |||||
| 244,000 | Trinity Industries, Inc.(g)(h) | 6,278,120 | |||||
| 27,757,656 | |||||||
Information Technology (28.0%) | |||||||
| 642,000 | ACI Worldwide, Inc.(a)(h) | 11,247,841 | |||||
| 742,000 | Akamai Technologies, Inc.(a)(h) | 12,940,480 | |||||
| 689,000 | Cisco Systems, Inc.(a) | 15,543,840 | |||||
| 14,000 | Corning, Inc. | 218,960 | |||||
| 835,000 | Dell, Inc.(a) | 13,760,800 | |||||
| 332,000 | Digital River, Inc.(a)(h) | 10,756,800 | |||||
| 548,000 | eBay, Inc.(a)(h) | 12,264,240 | |||||
| 333,000 | Harris Corp. | 15,384,600 | |||||
| 553,000 | Symantec Corp.(a) | 10,827,740 | |||||
| 2,000 | Yahoo!, Inc.(a) | 34,600 | |||||
| 102,979,901 | |||||||
Materials (7.1%) | |||||||
| 689,000 | Nalco Holding Co.(h) | 12,774,060 | |||||
| 600,000 | Sealed Air Corp.(h) | 13,194,000 | |||||
| 25,968,060 | |||||||
Total Common Stocks | 358,943,295 | ||||||
| INVESTMENT COMPANY (3.5%) | |||||||
| 12,693,097 | Federated Treasury Obligations Fund, Institutional Shares | 12,693,097 | |||||
Total Investment Company | 12,693,097 | ||||||
| Principal Amount | |||||||
| SECURITIES HELD AS COLLATERAL FOR SECURITIES ON LOAN (9.7%) | |||||||
| $ | 36,397,993 | Pool of Various Securities | 35,719,567 | ||||
Total Securities Held as Collateral for Securities on Loan | 35,719,567 | ||||||
|
| Total Investments — 110.9% (Cost $421,382,270) | 407,355,959 | |||||
| Net Other Assets (Liabilities) — (10.9)% | (39,986,223 | ) | |||||
| NET ASSETS — 100.0% | $ | 367,369,736 | |||||
See footnote legend to Schedules of Portfolio Investments.
See accompanying notes to the financial statements.
57
Schedule of Portfolio Investments
September 30, 2008
| Shares | Fair Value | ||||||
| COMMON STOCKS (84.3%) | |||||||
Consumer Discretionary (3.9%) | |||||||
| 742,000 | Pearson PLC, ADR(h) | $ | 8,087,800 | ||||
| 192,000 | Regal Entertainment Group, Class A(h) | 3,029,760 | |||||
| 11,117,560 | |||||||
Consumer Staples (11.2%) | |||||||
| 132,000 | Diageo PLC, ADR(h) | 9,089,520 | |||||
| 177,000 | Kimberly-Clark Corp.(h) | 11,476,680 | |||||
| 160,000 | PepsiCo, Inc. | 11,403,200 | |||||
| 31,969,400 | |||||||
Energy (23.8%) | |||||||
| 165,000 | BP PLC, ADR | 8,278,050 | |||||
| 118,000 | Chevron Corp. | 9,732,640 | |||||
| 156,000 | ConocoPhillips | 11,426,999 | |||||
| 222,999 | Kinder Morgan Management LLC(a) | 10,971,553 | |||||
| 434,000 | Natural Resource Partners, LP(h) | 10,993,221 | |||||
| 376,000 | StatoilHydro ASA, ADR | 8,948,800 | |||||
| 506,000 | Teekay LNG Partners LP | 7,944,200 | |||||
| 68,295,463 | |||||||
Financials (17.3%) | |||||||
| 235,000 | Allstate Corp. (The) | 10,838,200 | |||||
| 300,000 | Federated Investors, Inc., Class B(h) | 8,649,000 | |||||
| 430,000 | First Industrial Realty Trust, Inc., REIT(h) | 12,332,400 | |||||
| 300,300 | Realty Income Corp., REIT(h) | 7,687,680 | |||||
| 206,000 | U.S. Bancorp(g) | 7,420,120 | |||||
| 72,000 | Weingarten Realty Investors, REIT(h) | 2,568,240 | |||||
| 49,495,640 | |||||||
Health Care (5.6%) | |||||||
| 108,500 | Abbott Laboratories(g) | 6,247,430 | |||||
| 528,000 | Pfizer, Inc. | 9,736,320 | |||||
| 15,983,750 | |||||||
Industrials (12.6%) | |||||||
| 158,000 | Boeing Co. (The) | 9,061,300 | |||||
| 416,000 | General Electric Co. | 10,608,000 | |||||
| 115,000 | United Parcel Service, Inc., Class B | 7,232,350 | |||||
| 294,000 | Waste Management, Inc. | 9,258,060 | |||||
| 36,159,710 | |||||||
Information Technology (8.1%) | |||||||
| 256,000 | Microchip Technology, Inc.(h) | 7,534,080 | |||||
| 510,000 | Nokia Corp., ADR | 9,511,500 | |||||
| 672,000 | Taiwan Semiconductor Manufacturing Co., Ltd., ADR | 6,296,640 | |||||
| 23,342,220 | |||||||
Materials (1.8%) | |||||||
| 128,000 | E.I. DuPont de Nemours & Co.(h) | 5,158,400 | |||||
Total Common Stocks | 241,522,143 | ||||||
| INVESTMENT COMPANY (16.4%) | |||||||
| 47,049,417 | Federated Treasury Obligations Fund, Institutional Shares | 47,049,417 | |||||
Total Investment Company | 47,049,417 | ||||||
| Principal Amount | |||||||
| SECURITIES HELD AS COLLATERAL FOR SECURITIES ON LOAN (12.6%) | |||||||
| $ | 36,634,946 | Pool of Various Securities | 36,195,033 | ||||
Total Securities Held as Collateral for Securities on Loan | 36,195,033 | ||||||
| | Total Investments — 113.3% (Cost $340,992,804) | 324,766,593 | |||||
| Net Other Assets (Liabilities) — (13.3)% | (38,113,154 | ) | |||||
| NET ASSETS — 100.0% | $ | 286,653,439 | |||||
See footnote legend to Schedules of Portfolio Investments.
See accompanying notes to the financial statements.
58
BB&T Short U.S. Government Fund
Schedule of Portfolio Investments
September 30, 2008
| Principal Amount | Fair Value | ||||||
| COLLATERALIZED MORTGAGE OBLIGATIONS (17.5%) | |||||||
Fannie Mae(j) (2.7%) | |||||||
| $ | 1,373,118 | 3.500%, 4/25/26, Series 2003-65, Class PL | $ | 1,364,371 | |||
Freddie Mac(j) (10.6%) | |||||||
| 1,402,571 | 5.000%, 1/15/17, Series 2596, Class J | 1,414,870 | |||||
| 1,256,889 | 4.500%, 5/15/27, Series 2682, Class XJ | 1,257,876 | |||||
| 429,345 | 5.000%, 6/15/24, Series 2915, Class KA | 431,104 | |||||
| 649,649 | 5.000%, 9/15/26, Series 3018, Class UM | 652,090 | |||||
| 1,449,895 | 5.500%, 11/15/25, Series 3312, Class AP | 1,477,944 | |||||
| 5,233,884 | |||||||
Ginnie Mae (4.2%) | |||||||
| 2,090,000 | 4.500%, 4/16/28, Series 2003-97, Class NC | 2,094,158 | |||||
Total Collateralized Mortgage Obligations | 8,692,413 | ||||||
| MORTGAGE-BACKED SECURITIES (17.8%) | |||||||
Fannie Mae(j) (13.9%) | |||||||
| 854,903 | 4.500%, 1/1/10, Pool #254626 | 863,110 | |||||
| 293,818 | 6.500%, 8/1/13, Pool #251901 | 305,076 | |||||
| 272,037 | 6.000%, 3/1/16, Pool #253702 | 278,543 | |||||
| 265,427 | 6.000%, 4/1/16, Pool #535846 | 271,775 | |||||
| 482,054 | 6.500%, 4/1/16, Pool #253706 | 501,203 | |||||
| 199,965 | 6.000%, 8/1/16, Pool #545125 | 204,685 | |||||
| 1,213,011 | 5.000%, 11/1/17, Pool #254510 | 1,218,519 | |||||
| 1,312,699 | 5.000%, 12/1/17, Pool #254545 | 1,318,659 | |||||
| 1,977,286 | 4.500%, 3/1/18, Pool #555292 | 1,948,209 | |||||
| 6,909,779 | |||||||
Freddie Mac(j) (3.9%) | |||||||
| 228,127 | 5.000%, 12/1/08, Pool #M80714 | 228,891 | |||||
| 1,104,227 | 4.500%, 1/1/10, Pool #M80792 | 1,119,802 | |||||
| 128,878 | 6.500%, 5/1/13, Pool #E00548 | 135,166 | |||||
| 442,732 | 6.000%, 9/1/16, Pool #E01049 | 453,244 | |||||
| 1,937,103 | |||||||
Total Mortgage-Backed Securities | 8,846,882 | ||||||
| MUNICIPAL BONDS (3.0%) | |||||||
Virginia (3.0%) | |||||||
| 1,500,000 | Roanoke Industrial Development Authority, VA, Carilion Health System Revenue, Series A2, Callable 11/1/08 @ 100 (FSA), 7.000%, 7/1/36* | 1,500,000 | |||||
Total Municipal Bonds | 1,500,000 | ||||||
| U.S. GOVERNMENT AGENCIES (48.8%) | |||||||
Fannie Mae(j) (12.9%) | |||||||
| 2,500,000 | 3.875%, 2/15/10 | 2,523,578 | |||||
| 2,000,000 | 6.250%, 2/1/11(h) | 2,091,940 | |||||
| 1,750,000 | 4.375%, 3/15/13 | 1,784,450 | |||||
| 6,399,968 | |||||||
Federal Farm Credit Bank (9.7%) | |||||||
| 1,000,000 | 4.125%, 4/15/09 | 1,004,863 | |||||
| 1,000,000 | 5.375%, 7/18/11 | 1,045,457 | |||||
| 2,750,000 | 4.250%, 7/8/13 | 2,761,272 | |||||
| 4,811,592 | |||||||
Federal Home Loan Bank (13.2%) | |||||||
| 1,500,000 | 4.750%, 4/24/09 | 1,512,840 | |||||
| 4,000,000 | 3.750%, 8/18/09 | 4,020,084 | |||||
| 1,000,000 | 4.625%, 2/18/11, Series 616(h) | 1,026,704 | |||||
| 6,559,628 | |||||||
Freddie Mac(j) (13.0%) | |||||||
| 1,500,000 | 3.375%, 4/15/09 | 1,499,744 | |||||
| 5,000,000 | 2.375%, 5/28/10, Series 1(h) | 4,937,000 | |||||
| 6,436,744 | |||||||
Total U.S. Government Agencies | 24,207,932 | ||||||
| U.S. TREASURY NOTES (7.6%) | |||||||
| 2,000,000 | 2.625%, 3/15/09 | 2,010,624 | |||||
| 500,000 | 4.250%, 10/15/10(h) | 523,164 | |||||
| 1,150,000 | 4.125%, 8/31/12 | 1,212,081 | |||||
Total U.S. Treasury Notes | 3,745,869 | ||||||
| Shares | |||||||
| INVESTMENT COMPANY (3.8%) | |||||||
| 1,886,270 | Federated Treasury Obligations Fund, Institutional Shares | 1,886,270 | |||||
Total Investment Company | 1,886,270 | ||||||
| Principal Amount | |||||||
| SECURITIES HELD AS COLLATERAL FOR SECURITIES ON LOAN (8.3%) | |||||||
| $ | 4,196,813 | Pool of Various Securities | 4,107,031 | ||||
Total Securities Held as Collateral for Securities on Loan | 4,107,031 | ||||||
|
| Total Investments — 106.8% (Cost $52,977,732) | 52,986,397 | |||||
| Net Other Assets (Liabilities) — (6.8)% | (3,394,824 | ) | |||||
| NET ASSETS — 100.0% | $ | 49,591,573 | |||||
See footnote legend to Schedules of Portfolio Investments.
See accompanying notes to the financial statements.
59
BB&T Intermediate U.S. Government Fund
Schedule of Portfolio Investments
September 30, 2008
| Principal Amount | Fair Value | ||||||
| COLLATERALIZED MORTGAGE OBLIGATIONS (12.3%) | |||||||
Freddie Mac(j) (12.3%) | |||||||
| $ | 15,033,948 | 5.125%, 10/15/15, Series R003, Class AG | $ | 15,168,270 | |||
Total Collateralized Mortgage Obligations | 15,168,270 | ||||||
| CORPORATE BONDS (2.7%) | |||||||
Financials (2.7%) | |||||||
| 2,000,000 | Goldman Sachs Group, Inc. (The), 5.125%, 1/15/15 | 1,650,900 | |||||
| 2,000,000 | MBNA Corp., 5.000%, 6/15/15 | 1,629,418 | |||||
| 3,280,318 | |||||||
Total Corporate Bonds | 3,280,318 | ||||||
| MORTGAGE-BACKED SECURITIES (44.7%) | |||||||
Fannie Mae(j) (36.0%) | |||||||
| 4,589,322 | 5.000%, 1/1/18, Pool #650205 | 4,604,423 | |||||
| 3,954,573 | 4.500%, 3/1/18, Pool #555292 | 3,896,417 | |||||
| 1,542,678 | 5.500%, 1/1/33, Pool #678321 | 1,543,905 | |||||
| 2,966,884 | 5.000%, 7/1/33, Pool #724965 | 2,900,880 | |||||
| 937,895 | 5.000%, 8/1/33, Pool #738751 | 917,158 | |||||
| 761,019 | 5.000%, 8/1/33, Pool #724365 | 751,098 | |||||
| 780,385 | 5.000%, 10/1/33, Pool #753298 | 762,982 | |||||
| 2,323,266 | 6.500%, 11/1/34, Pool #783476 | 2,379,213 | |||||
| 9,820,116 | 5.500%, 5/1/35, Pool #825530 | 9,806,446 | |||||
| 8,848,707 | 5.500%, 9/1/35, Pool #835787 | 8,836,389 | |||||
| 7,996,796 | 5.500%, 8/1/37, Pool #946238 | 7,920,690 | |||||
| 44,319,601 | |||||||
Freddie Mac(j) (8.7%) | |||||||
| 5,356,966 | 4.500%, 2/1/18, Pool #E94445 | 5,271,491 | |||||
| 5,530,264 | 5.500%, 2/1/29, Pool #A18613 | 5,528,182 | |||||
| 10,799,673 | |||||||
Total Mortgage-Backed Securities | 55,119,274 | ||||||
| MUNICIPAL BONDS (5.3%) | |||||||
Texas (3.3%) | |||||||
| 4,000,000 | Dallas City, TX, Public Improvements G.O., Callable 2/15/17 @ 100, 5.000%, 2/15/20 | 4,050,560 | |||||
Wisconsin (2.0%) | |||||||
| 2,525,000 | Wisconsin State, Public Improvements G.O., Series B, Callable 5/1/15 @ 100 (FSA), 5.000%, 5/1/25 | 2,444,680 | |||||
Total Municipal Bonds | 6,495,240 | ||||||
| U.S. GOVERNMENT AGENCIES (30.5%) | |||||||
Fannie Mae(j) (14.6%) | |||||||
| 3,000,000 | 4.050%, 2/22/13 | 3,002,097 | |||||
| 6,970,000 | 5.125%, 1/2/14(h) | 6,940,935 | |||||
| 8,000,000 | 4.125%, 4/15/14 | 7,994,568 | |||||
| 17,937,600 | |||||||
Freddie Mac(j) (6.2%) | |||||||
| 3,000,000 | 5.875%, 3/21/11 | 3,119,631 | |||||
| 2,500,000 | 4.000%, 2/5/13 | 2,466,987 | |||||
| 2,000,000 | 4.875%, 6/13/18 | 2,027,032 | |||||
| 7,613,650 | |||||||
Private Export Funding Corp. (9.7%) | |||||||
| 2,427,000 | 7.200%, 1/15/10, Series I | 2,546,513 | |||||
| 4,350,000 | 4.974%, 8/15/13 | 4,478,725 | |||||
| 5,000,000 | 4.550%, 5/15/15 | 4,971,820 | |||||
| 11,997,058 | |||||||
Total U.S. Government Agencies | 37,548,308 | ||||||
| Shares | |||||||
| INVESTMENT COMPANY (3.7%) | |||||||
| 4,521,695 | Federated Treasury Obligations Fund, Institutional Shares | 4,521,695 | |||||
Total Investment Company | 4,521,695 | ||||||
| Principal Amount | |||||||
| SECURITIES HELD AS COLLATERAL FOR SECURITIES ON LOAN (5.7%) | |||||||
| $ | 7,152,963 | Pool of Various Securities | 7,057,725 | ||||
Total Securities Held as Collateral for Securities on Loan | 7,057,725 | ||||||
|
| Total Investments — 104.9% (Cost $130,648,034) | 129,190,830 | |||||
| Net Other Assets (Liabilities) — (4.9)% | (6,003,028 | ) | |||||
| NET ASSETS — 100.0% | $ | 123,187,802 | |||||
See footnote legend to Schedules of Portfolio Investments.
See accompanying notes to the financial statements.
60
Schedule of Portfolio Investments
September 30, 2008
| Principal Amount | Fair Value | |||||
| ASSET BACKED SECURITIES (5.1%) | ||||||
| $ | 2,000,000 | American Express Credit Account Master Trust, Series 2004-5, Class A, 2.578%, 4/16/12*(b) | $ | 1,973,169 | ||
| 942,000 | Chase Credit Card Master Trust, Series 2003-6, Class A, 2.598%, 2/15/11*(b) | 941,303 | ||||
| 5,095,000 | Chase Funding Mortgage Loan Asset-Backed Certificates, Series 2003-4, Class 1A5, STEP, 5.416%, 5/25/33(f) | 4,276,566 | ||||
| 980,000 | Chase Issuance Trust, Series 2006-A5, Class A, 2.508%, 11/15/13*(b) | 918,137 | ||||
| 1,250,000 | Citibank Credit Card Issuance Trust, Series 2007-A1, Class A1, 3.194%, 3/22/12*(b) | 1,218,495 | ||||
| 3,547,181 | Credit-Based Asset Servicing and Securitization LLC, Series 2005-CB5, Class AF2, STEP, 4.831%, 8/25/35(f) | 3,455,484 | ||||
| 1,410,000 | MBNA Credit Card Master Note Trust, Series 2001-A5, Class A5, 2.698%, 3/15/11*(b) | 1,409,015 | ||||
| 2,154,000 | MBNA Credit Card Master Note Trust, Series 2002-A5, Class A5, 2.668%, 10/17/11*(b) | 2,141,598 | ||||
| 2,820,000 | MBNA Credit Card Master Note Trust, Series 2002-A8, Class A8, 2.941%, 12/15/11*(b) | 2,794,816 | ||||
| 700,000 | MBNA Credit Card Master Note Trust, Series 2003-A12, Class A12, 2.598%, 5/16/11*(b) | 698,861 | ||||
| 2,820,000 | MBNA Credit Card Master Note Trust, Series 2003-A8, Class A8, 2.678%, 12/17/12*(b) | 2,750,826 | ||||
Total Asset Backed Securities | 22,578,270 | |||||
| COMMERCIAL MORTGAGE-BACKED SECURITIES (4.8%) | ||||||
| 3,300,000 | Banc of America Commercial Mortgage, Inc., Series 2007-4, Class A4, 5.936%, 2/10/51* | 2,820,258 | ||||
| 7,138,000 | Citigroup/Deutsche Bank Commercial Mortgage Trust, Series 2006-CD3, Class A3, 5.607%, 10/15/48 | 6,526,750 | ||||
| 4,400,000 | Credit Suisse Mortgage Capital Certificates, Series 2007-C5, Class A4, 5.695%, 9/15/40* | 3,725,922 | ||||
| 2,600,000 | Merrill Lynch/Countrywide Commercial Mortgage Trust, Series 2006-3, Class A3, 5.389%, 7/12/46* | 2,394,893 | ||||
| 6,300,000 | Wachovia Bank Commercial Mortgage Trust, Series 2007-C33, Class A3, 6.100%, 2/15/51* | 5,685,590 | ||||
Total Commercial Mortgage-Backed Securities | 21,153,413 | |||||
| CORPORATE BONDS (19.7%) | ||||||
Consumer Discretionary (1.1%) | ||||||
| 2,110,000 | Historic TW, Inc., 9.125%, 1/15/13 | 2,215,483 | ||||
| 2,864,000 | Time Warner, Inc., 5.875%, 11/15/16 | 2,517,112 | ||||
| 4,732,595 | ||||||
Consumer Staples (1.4%) | ||||||
| 1,835,000 | Coca-Cola Co. (The), 5.350%, 11/15/17 | 1,814,059 | ||||
| 4,460,000 | CVS Caremark Corp., 4.875%, 9/15/14 | 4,172,147 | ||||
| 5,986,206 | ||||||
Energy (0.5%) | ||||||
| 2,276,000 | Peabody Energy Corp., Series B, 6.875%, 3/15/13 | 2,196,340 | ||||
Financials (8.8%) | ||||||
| 2,680,000 | American International Group, Inc., MTN, Series G, 5.850%, 1/16/18 | 1,345,218 | ||||
| 2,600,000 | Bank of America Corp., 5.125%, 11/15/14 | 2,338,716 | ||||
| 2,042,000 | Bank of America Corp., 5.750%, 12/1/17 | 1,731,591 | ||||
| 4,160,000 | Bear Stearns Cos., Inc. LLC (The), 7.250%, 2/1/18 | 4,003,480 | ||||
| 455,000 | Citigroup, Inc., 6.125%, 5/15/18 | 376,742 | ||||
| 2,355,000 | ERP Operating LP, 5.125%, 3/15/16(h) | 1,972,555 | ||||
| 3,459,000 | GATX Financial Corp., 5.125%, 4/15/10 | 3,486,036 | ||||
| 7,210,000 | General Electric Capital Corp., 5.625%, 5/1/18 | 6,094,440 | ||||
| 334,000 | Goldman Sachs Group, Inc. (The), 5.300%, 2/14/12 | 301,015 | ||||
| 2,380,000 | Goldman Sachs Group, Inc. (The), 6.125%, 2/15/33 | 1,717,429 | ||||
| 6,388,000 | Morgan Stanley, MTN, Series F, 6.625%, 4/1/18 | 4,227,521 | ||||
| 6,985,000 | Prudential Financial, Inc., MTN, Series B, 5.100%, 9/20/14 | 6,344,790 | ||||
| 1,430,000 | Prudential Financial, Inc., MTN, Series D, 6.625%, 12/1/37 | 1,200,615 | ||||
| 4,455,000 | Wells Fargo & Co., 5.625%, 12/11/17 | 4,094,337 | ||||
| 39,234,485 | ||||||
Health Care (1.0%) | ||||||
| 2,167,000 | Cardinal Health, Inc., 4.000%, 6/15/15 | 1,866,704 | ||||
| 2,940,000 | Laboratory Corp. of America Holdings, 5.625%, 12/15/15 | 2,703,577 | ||||
| 4,570,281 | ||||||
Industrials (2.4%) | ||||||
| 3,593,000 | Allied Waste North America, Inc., 6.875%, 6/1/17 | 3,341,490 | ||||
| 4,393,000 | Corrections Corp. of America, 6.250%, 3/15/13 | 4,107,455 | ||||
| 3,350,000 | Goodrich (BF) Corp., 6.290%, 7/1/16 | 3,317,220 | ||||
| 10,766,165 | ||||||
Information Technology (3.0%) | ||||||
| 2,237,000 | Cisco Systems, Inc., 5.500%, 2/22/16(h) | 2,149,585 | ||||
| 2,340,000 | Hewlett-Packard Co., 6.500%, 7/1/12 | 2,460,262 | ||||
| 540,000 | Hewlett-Packard Co., 5.400%, 3/1/17(h) | 508,272 | ||||
| 2,185,000 | International Business Machines Corp., 5.700%, 9/14/17 | 2,116,562 | ||||
| 3,956,000 | Oracle Corp., 5.250%, 1/15/16 | 3,724,467 | ||||
| 1,311,000 | Oracle Corp., 5.750%, 4/15/18 | 1,217,270 | ||||
| 1,150,000 | Xerox Corp., 6.350%, 5/15/18 | 1,051,216 | ||||
| 13,227,634 | ||||||
Telecommunication Services (0.8%) | ||||||
| 3,930,000 | AT&T, Inc., 6.400%, 5/15/38 | 3,298,135 | ||||
Utilities (0.7%) | ||||||
| 1,470,000 | Duke Energy Corp., 6.250%, 6/15/18 | 1,390,649 | ||||
| 1,909,000 | Ohio Power Co., Series K, 6.000%, 6/1/16 | 1,821,492 | ||||
| 3,212,141 | ||||||
Total Corporate Bonds | 87,223,982 | |||||
| MORTGAGE-BACKED SECURITIES (46.2%) | ||||||
Fannie Mae(j) (20.6%) | ||||||
| 76,840 | 6.000%, 10/1/13, Pool #252061 | 78,653 | ||||
| 161,192 | 5.500%, 4/1/18, Pool #685496 | 163,788 | ||||
| 2,149,727 | 4.500%, 6/1/19, Pool #780349 | 2,111,396 | ||||
Continued
61
BB&T Total Return Bond Fund
Schedule of Portfolio Investments — (continued)
September 30, 2008
| Principal Amount | Fair Value | |||||
| MORTGAGE-BACKED SECURITIES — (continued) | ||||||
| Fannie Mae(j) — (continued) | ||||||
| $ | 246,972 | 5.000%, 8/1/20, Pool #832058 | $ | 246,241 | ||
| 421,402 | 5.000%, 8/1/20, Pool #838787 | 420,155 | ||||
| 994,106 | 5.500%, 11/1/20, Pool #843972 | 1,004,833 | ||||
| 988,110 | 5.500%, 12/1/20, Pool #831138 | 998,773 | ||||
| 857,015 | 5.500%, 5/1/21, Pool #895628 | 866,262 | ||||
| 517,733 | 5.500%, 6/1/21, Pool #831526 | 522,673 | ||||
| 127,021 | 5.000%, 5/1/22, Pool #256716 | 126,261 | ||||
| 1,479,117 | 6.000%, 7/1/22, Pool #944967 | 1,508,168 | ||||
| 1,312,721 | 5.000%, 9/1/25, Pool #255892 | 1,289,889 | ||||
| 3,503,262 | 5.500%, 2/1/27, Pool #256600 | 3,510,975 | ||||
| 625,120 | 6.500%, 1/1/35, Pool #809198 | 643,560 | ||||
| 4,761,190 | 5.500%, 3/1/35, Pool #787561 | 4,754,563 | ||||
| 4,028,935 | 5.500%, 4/1/35, Pool #822982 | 4,025,844 | ||||
| 346,517 | 6.000%, 4/1/35, Pool #735503 | 352,623 | ||||
| 727,221 | 7.000%, 6/1/35, Pool #830686 | 760,344 | ||||
| 482,228 | 7.000%, 6/1/35, Pool #255820 | 504,193 | ||||
| 2,137,419 | 5.500%, 10/1/35, Pool #817568 | 2,134,443 | ||||
| 1,052,548 | 5.500%, 2/1/36, Pool #831295 | 1,051,082 | ||||
| 1,682,305 | 5.500%, 2/1/36, Pool #256101 | 1,679,964 | ||||
| 1,430,330 | 6.500%, 3/1/36, Pool #866062 | 1,468,275 | ||||
| 1,636,215 | 6.000%, 6/1/36, Pool #886959 | 1,659,170 | ||||
| 1,244,322 | 6.500%, 7/1/36, Pool #885493 | 1,277,333 | ||||
| 564,851 | 5.500%, 12/1/36, Pool #922224 | 563,800 | ||||
| 8,520,016 | 5.500%, 1/1/37, Pool #256552 | 8,504,162 | ||||
| 9,228,128 | 5.500%, 3/1/37, Pool #888221 | 9,210,957 | ||||
| 2,457,534 | 6.000%, 4/1/37, Pool #914725 | 2,491,873 | ||||
| 3,498,788 | 6.000%, 4/1/37, Pool #256674 | 3,547,676 | ||||
| 3,857,403 | 6.000%, 7/1/37, Pool #256800 | 3,911,303 | ||||
| 4,215,598 | 6.000%, 7/1/37, Pool #936855 | 4,274,503 | ||||
| 1,352,881 | 6.000%, 9/1/37, Pool #955005 | 1,371,785 | ||||
| 5,954,854 | 5.000%, 3/1/38, Pool #929182 | 5,806,209 | ||||
| 4,516,761 | 5.500%, 3/1/38, Pool #969064 | 4,507,651 | ||||
| 6,894,806 | 5.000%, 5/1/38, Pool #981481 | 6,722,698 | ||||
| 2,319,801 | 5.500%, 7/1/38, Pool #934323 | 2,315,122 | ||||
| 5,280,001 | 5.500%, 7/1/38, Pool #889685 | 5,269,351 | ||||
| 91,656,551 | ||||||
| Freddie Mac(j) (25.6%) | ||||||
| 1,072,650 | 6.000%, 10/1/19, Pool #G11679 | 1,092,357 | ||||
| 2,167,374 | 5.000%, 5/1/20, Pool #B19275 | 2,157,175 | ||||
| 341,793 | 5.500%, 3/1/21, Pool #J01432 | 344,947 | ||||
| 2,519,114 | 5.500%, 10/1/21, Pool #G12425 | 2,539,212 | ||||
| 1,238,420 | 5.000%, 12/1/21, Pool #J04025 | 1,229,883 | ||||
| 2,111,703 | 5.000%, 7/1/25, Pool #C90908 | 2,080,896 | ||||
| 1,890,825 | 4.500%, 6/1/35, Pool #G01842 | 1,791,628 | ||||
| 4,206,413 | 5.500%, 6/1/35, Pool #A35148 | 4,190,041 | ||||
| 2,693,807 | 5.500%, 7/1/35, Pool #A36540 | 2,683,322 | ||||
| 1,036,129 | 6.000%, 7/1/35, Pool #A36304 | 1,050,341 | ||||
| 1,022,526 | 5.500%, 8/1/35, Pool #A36652 | 1,018,546 | ||||
| 1,552,118 | 5.000%, 9/1/35, Pool #A37961 | 1,514,344 | ||||
| 809,242 | 5.500%, 9/1/35, Pool #G08080 | 806,092 | ||||
| 3,810,573 | 5.101%, 12/1/35, Pool #847603* | 3,869,912 | ||||
| 1,208,606 | 5.500%, 12/1/35, Pool #A40359 | 1,203,902 | ||||
| 1,632,418 | 5.000%, 3/1/36, Pool #G08115 | 1,592,690 | ||||
| 3,186,938 | 5.500%, 4/1/36, Pool #A44445 | 3,173,041 | ||||
| 1,556,647 | 6.500%, 5/1/36, Pool #A48509 | 1,598,150 | ||||
| 571,892 | 5.000%, 7/1/36, Pool #G02291 | 557,616 | ||||
| 4,425,129 | 6.000%, 9/1/36, Pool #A52325 | 4,483,754 | ||||
| 5,315,422 | 5.500%, 12/1/36, Pool #A80368 | 5,292,242 | ||||
| 4,741,889 | 5.875%, 12/1/36, Pool #1J1390* | 4,828,952 | ||||
| 3,449,544 | 6.000%, 4/1/37, Pool #A58853 | 3,495,244 | ||||
| 13,328,002 | 5.000%, 7/1/37, Pool #G03050 | 12,991,142 | ||||
| 4,799,381 | 6.000%, 8/1/37, Pool #A64067 | 4,862,964 | ||||
| 5,208,207 | 5.500%, 9/1/37, Pool #G03202 | 5,184,682 | ||||
| 5,743,472 | 5.733%, 9/1/37, Pool #1Q0319* | 5,783,985 | ||||
| 2,588,686 | 5.500%, 1/1/38, Pool #A71523 | 2,576,992 | ||||
| 4,724,509 | 6.000%, 2/1/38, Pool #G04051 | 4,787,100 | ||||
| 4,537,730 | 6.000%, 3/1/38, Pool #G04123 | 4,597,846 | ||||
| 2,973,159 | 5.211%, 4/1/38, Pool #783255* | 3,022,202 | ||||
| 5,280,001 | 5.500%, 6/1/38, Pool #A77678 | 5,256,151 | ||||
| 2,875,226 | 5.500%, 7/1/38, Pool #A79017 | 2,862,239 | ||||
| 9,000,000 | 6.000%, 10/15/38(c) | 9,109,692 | ||||
| 113,629,282 | ||||||
Total Mortgage-Backed Securities | 205,285,833 | |||||
| MUNICIPAL BONDS (13.0%) | ||||||
| Iowa (1.5%) | ||||||
| 7,050,000 | Iowa Student Loan Liquidity Corporation, Student Loan Revenue Bonds, Series E, Taxable (AMBAC, GTD STD LNS), 0.000%, 12/1/31*(f)(i) | 6,697,500 | ||||
| Maryland (2.2%) | ||||||
| 3,635,000 | Maryland State, Capital Improvements G.O., Series A, 5.250%, 2/15/13 | 3,914,968 | ||||
| 3,815,000 | Maryland State, Refunding G.O., 5.000%, 2/1/11 | 4,006,818 | ||||
| 1,530,000 | Maryland State, State & Local Facilities Loan Public Improvements G.O., First Series A, 5.250%, 3/1/16 | 1,658,841 | ||||
| 9,580,627 | ||||||
| Michigan (0.8%) | ||||||
| 3,570,000 | Michigan Municipal Bond Authority, Refunding School Loan Revenue Bonds (FSA-CR, FGIC), 5.222%, 6/1/14 | 3,577,033 | ||||
| Minnesota (0.8%) | ||||||
| 3,130,000 | Minnesota State, Public Improvements G.O., 5.000%, 8/1/16 | 3,341,431 | ||||
| New Jersey (1.5%) | ||||||
| 7,100,000 | Higher Education Student Assistance Authority, NJ, Student Loan Revenue, Series A (MBIA, GTD STD LNS), 3.378%, 6/1/36*(f)(i) | 6,887,000 | ||||
| New York (1.3%) | ||||||
| 2,770,000 | New York City Transitional Finance Authority, NY, Public Improvements Revenue Bonds, Series D, Taxable, OID, 4.800%, 2/1/13 | 2,767,784 | ||||
| 2,830,000 | New York, NY, Cash Flow Management G.O., Sub Series C-4, Taxable, 5.250%, 8/15/14 | 2,900,920 | ||||
| 5,668,704 | ||||||
| North Carolina (1.8%) | ||||||
| 7,570,000 | North Carolina State, Refunding G.O., Series B, 5.000%, 4/1/14 | 8,122,156 | ||||
| Pennsylvania (2.0%) | ||||||
| 4,000,000 | Commonwealth of Pennsylvania, Public Improvements G.O., First Series, 5.000%, 5/15/15 | 4,266,560 | ||||
Continued
62
BB&T Total Return Bond Fund
Schedule of Portfolio Investments — (continued)
September 30, 2008
| Principal Amount | Fair Value | ||||||
| MUNICIPAL BONDS — (continued) | |||||||
Pennsylvania — (continued) | |||||||
| $ | 4,255,000 | Commonwealth of Pennsylvania, Public Improvements G.O., Second Series A, 5.000%, 8/1/13 | $ | 4,536,894 | |||
| 8,803,454 | |||||||
Virginia (1.1%) | |||||||
| 2,565,000 | Fairfax County, VA, Public Improvements G.O., Series A (State Aid Withholding), 5.000%, 4/1/17 | 2,724,594 | |||||
| 2,195,000 | Virginia Public Building Authority Revenue, VA, Public Improvements, Series C, 5.000%, 8/1/15 | 2,343,031 | |||||
| 5,067,625 | |||||||
Total Municipal Bonds | 57,745,530 | ||||||
| U.S. GOVERNMENT AGENCIES (9.1%) | |||||||
Fannie Mae(j) (5.3%) | |||||||
| 13,200,000 | 4.875%, 5/18/12(b) | 13,709,784 | |||||
| 9,620,000 | 3.875%, 7/12/13(h) | 9,596,104 | |||||
| 23,305,888 | |||||||
Federal Home Loan Bank (2.0%) | |||||||
| 4,590,000 | 3.625%, 12/17/10(b) | 4,611,293 | |||||
| 4,185,000 | 5.250%, 9/13/13(b) | 4,374,455 | |||||
| 8,985,748 | |||||||
Freddie Mac(j) (1.8%) | |||||||
| 7,560,000 | 5.750%, 1/15/12(b) | 8,071,857 | |||||
Total U.S. Government Agencies | 40,363,493 | ||||||
| U.S. TREASURY NOTES (1.1%) | |||||||
| 678,000 | 5.500%, 8/15/28(b) | 772,231 | |||||
| 4,135,000 | 4.500%, 5/15/38(b)(h) | 4,268,743 | |||||
Total U.S. Treasury Notes | 5,040,974 | ||||||
| FOREIGN GOVERNMENT BONDS (0.5%) | |||||||
Brazil (0.5%) | |||||||
| 2,465,000 | Brazilian Government International Bond, 6.000%, 1/17/17 | 2,378,725 | |||||
Total Foreign Government Bonds | 2,378,725 | ||||||
| Shares | |||||||
| INVESTMENT COMPANY (2.1%) | |||||||
| 9,080,747 | Federated Treasury Obligations Fund, Institutional Shares | 9,080,747 | |||||
Total Investment Company | 9,080,747 | ||||||
| Principal Amount | |||||||
| SECURITIES HELD AS COLLATERAL FOR SECURITIES ON LOAN (3.3%) | |||||||
| $ | 15,365,456 | Pool of Various Securities | 14,843,452 | ||||
Total Securities Held as Collateral for Securities on Loan | 14,843,452 | ||||||
|
| Total Investments — 104.9% (Cost $479,940,548) | 465,694,419 | |||||
| Net Other Assets (Liabilities) — (4.9)% | (21,780,735 | ) | |||||
| NET ASSETS — 100.0% | $ | 443,913,684 | |||||
See footnote legend to Schedules of Portfolio Investments.
See accompanying notes to the financial statements.
63
BB&T Kentucky Intermediate Tax-Free Fund
Schedule of Portfolio Investments
September 30, 2008
| Principal Amount | Fair Value | |||||
| MUNICIPAL BONDS (94.1%) | ||||||
Kentucky (94.1%) | ||||||
| $ | 345,000 | Boone County, KY, School District Finance Corp. Revenue, Callable 8/1/15 @ 100 (XLCA), OID, 4.000%, 8/1/17 | $ | 329,102 | ||
| 225,000 | Bullitt County, KY, School District Finance Corp., Bullitt County School Building Revenue, Callable 3/1/18 @ 100, OID, 4.750%, 3/1/22 | 211,095 | ||||
| 475,000 | Campbell & Kenton Counties, KY, Santation District No. 1, Sewer Improvements Revenue, Callable 8/1/17 @ 100 (MBIA), 5.000%, 8/1/25 | 454,632 | ||||
| 300,000 | Christian County, KY, Jennie Stuart Medical Center Revenue (Assured Guaranty), 5.250%, 2/1/18 | 296,214 | ||||
| 110,000 | Grayson County, KY, Public Properties Corp., Judicial Center Project Public Improvement Revenue (CIFG), 4.375%, 9/1/17 | 108,940 | ||||
| 400,000 | Jefferson County, KY, First Mortgage Christian Church Homes Revenue, Callable 11/6/08 @ 100, OID, 6.125%, 11/15/18 | 400,048 | ||||
| 100,000 | Kenton County, KY, Public Properties Corp., First Mortgage Court Facilities Project Refunding Revenue (AMBAC), 4.125%, 3/1/16 | 99,272 | ||||
| 30,000 | Kentucky Area Development Districts Financing, KY, City of Ewing Trust Lease Program Revenue , Series E, Callable 6/1/10 @ 102 (Wachovia Bank N.A.), 5.400%, 6/1/14 | 31,107 | ||||
| 250,000 | Kentucky Area Development Districts, KY, Trust Lease Acquisition Program Certificate of Participation, Series M, Callable 11/6/08 @ 100, 4.300%, 8/1/09 | 250,965 | ||||
| 800,000 | Kentucky Area Development Districts, KY, Trust Lease Acquisition Program Certificate of Participation, Series M, Callable 11/6/08 @ 100, 4.000%, 11/1/09 | 800,936 | ||||
| 500,000 | Kentucky Asset/Liability Commission, Project Notes-Federal Highway Transit Revenue, First Series (MBIA), 4.500%, 9/1/17 | 500,710 | ||||
| 500,000 | Kentucky Asset/Liability Commission, Project Notes-First Series Revenue (MBIA), 5.000%, 5/1/13 | 524,805 | ||||
| 480,000 | Kentucky Asset/Liability Commission, University of Kentucky Project Notes Revenue (FGIC), 5.000%, 10/1/15 | 504,216 | ||||
| 635,000 | Kentucky Asset/Liability Commission, University of Kentucky Project Notes Revenue, Series B, Callable 10/01/17 @ 100, 5.000%, 10/1/21 | 626,523 | ||||
| 510,000 | Kentucky Economic Development Finance Authority, Catholic Health Initiatives Revenue, Series A, Prerefunded 6/1/10 @ 101, OID, 5.750%, 12/1/15 | 541,426 | ||||
| 500,000 | Kentucky Housing Corp. Refunding Revenue, Series F, Callable 7/1/13 @ 100, 4.850%, 1/1/24 | 464,745 | ||||
| 200,000 | Kentucky State Property & Buildings Commission, Project No. 66 Revenue, Series A, Prerefunded 5/1/10 @ 100 (MBIA), OID, 5.500%, 5/1/15 | 209,186 | ||||
| 170,000 | Kentucky State Property & Buildings Commission, Project No. 69 Refunding Revenue, Series A (FSA), 5.250%, 8/1/10 | 177,325 | ||||
| 540,000 | Kentucky State Property & Buildings Commission, Project No. 69 Refunding Revenue, Series A (FSA), 5.500%, 8/1/11 | 574,387 | ||||
| 400,000 | Kentucky State Property & Buildings Commission, Project No. 71 Public Improvements Revenue, Escrowed To Maturity, 5.500%, 8/1/11 | 427,124 | ||||
| 250,000 | Kentucky State Property & Buildings Commission, Project No. 72 Revenue, Prerefunded 10/1/11 @ 100 (MBIA), 5.375%, 10/1/14 | 266,780 | ||||
| 500,000 | Kentucky State Property & Buildings Commission, Project No. 72 Revenue, Prerefunded 10/1/11 @ 100 (MBIA), 5.375%, 10/1/15 | 533,560 | ||||
| 200,000 | Kentucky State Property & Buildings Commission, Project No. 73 Road Funding Revenue, 5.250%, 11/1/11 | 210,886 | ||||
| 150,000 | Kentucky State Property & Buildings Commission, Project No. 74 Revenue, Prerefunded 2/1/12 @ 100 (FSA), 5.375%, 2/1/14 | 160,386 | ||||
| 430,000 | Kentucky State Property & Buildings Commission, Project No. 76 Refunding Revenue (AMBAC), 5.500%, 8/1/21 | 438,626 | ||||
| 500,000 | Kentucky State Property & Buildings Commission, Project No. 81 Revenue, Callable 11/1/13 @ 100 (AMBAC), 5.000%, 11/1/16 | 515,865 | ||||
| 500,000 | Kentucky State Property & Buildings Commission, Project No. 83 Refunding Revenue (AMBAC), 5.000%, 10/1/19 | 507,400 | ||||
| 230,000 | Kentucky Turnpike Authority Revenue, Series B (AMBAC), 5.000%, 7/1/15 | 242,089 | ||||
| 250,000 | Kentucky Turnpike Authority, Revitalization Project Refunding Revenue, Series A (AMBAC), 5.500%, 7/1/12 | 268,338 | ||||
| 195,000 | Kentucky Turnpike Authority, Revitalization Project Refunding Revenue, Series A (AMBAC), 5.500%, 7/1/15 | 210,947 | ||||
| 450,000 | Kentucky Turnpike Authority, Revitalization Project Refunding Revenue, Series B, Callable 7/1/15 @ 100 (AMBAC), 5.000%, 7/1/19 | 459,004 | ||||
| 260,000 | Knott County, KY, Recreational Facilities Improvements Youth & Recreation Center Project G.O., 5.000%, 9/1/12 | 265,083 | ||||
| 70,000 | Larue County, KY, School District Finance Corp., Larue County School Building Revenue (MBIA), 4.250%, 7/1/15 | 70,486 | ||||
| 430,000 | Laurel County, KY, Judicial Center Public Properties Corp. Revenue, Callable 3/1/18 @ 100, OID, 4.500%, 3/1/24 | 385,254 | ||||
| 150,000 | Louisville & Jefferson County, KY, Metropolitan Government G.O., Series A, 4.000%, 11/1/13 | 153,857 | ||||
Continued
64
BB&T Kentucky Intermediate Tax-Free Fund
Schedule of Portfolio Investments — (continued)
September 30, 2008
| Principal Amount | Fair Value | |||||
| MUNICIPAL BONDS — (continued) | ||||||
Kentucky — (continued) | ||||||
| $ | 500,000 | Louisville & Jefferson County, KY, Metropolitan Government Jewish Hospital St. Mary’s Healthcare Refunding Revenue, Callable 2/1/13 @ 100, 6.000%, 2/1/22 | $ | 498,135 | ||
| 815,000 | Louisville & Jefferson County, KY, Metropolitan Sewer District, Sewer Improvements Revenue, Series A, Callable 11/15/11 @ 101 (MBIA), OID, 5.000%, 5/15/36 | 745,546 | ||||
| 430,000 | Louisville & Jefferson County, KY, Metropolitan Sewer District, Sewer Refunding Revenue, Series A, Callable 11/6/08 @ 101 (FGIC), 5.500%, 5/15/09 | 435,289 | ||||
| 350,000 | Louisville, KY, Parking Authority Revenue, Callable 1/1/09 @ 100, 7.500%, 7/1/09 | 363,542 | ||||
| 585,000 | Owensboro-Daviess County, KY, Regional Water Resource Agency Refunding & Improvements Revenue, Series A (XLCA), 4.000%, 1/1/16 | 569,152 | ||||
| 375,000 | Warren County, KY, Community Hospital Corp. Project Refunding Revenue, Series A, 5.000%, 8/1/14 | 372,596 | ||||
| 275,000 | Warren County, KY, School District Finance Corp., Warren County School Building Revenue (FSA), 4.000%, 4/1/17 | 262,284 | ||||
Total Municipal Bonds | 15,467,863 | |||||
| Shares | ||||||
| INVESTMENT COMPANY (4.3%) | ||||||
| 709,720 | Federated Tax-Free Obligations Fund, Institutional Service Class | 709,720 | ||||
Total Investment Company | 709,720 | |||||
|
| Total Investments — 98.4% (Cost $16,526,831) | 16,177,583 | ||||
| Net Other Assets (Liabilities) — 1.6% | 256,418 | |||||
| NET ASSETS — 100.0% | $ | 16,434,001 | ||||
See footnote legend to Schedules of Portfolio Investments.
See accompanying notes to the financial statements.
65
BB&T Maryland Intermediate Tax-Free Fund
Schedule of Portfolio Investments
September 30, 2008
| Principal Amount | Fair Value | |||||
| MUNICIPAL BONDS (94.2%) | ||||||
District of Columbia (3.1%) | ||||||
| $ | 285,000 | Washington, D.C., Metropolitan Area Transit Authority, Refunding Revenue (MBIA), 5.000%, 7/1/12 | $ | 297,246 | ||
| 180,000 | Washington, D.C., Metropolitan Area Transit Authority, Refunding Revenue (MBIA), 5.000%, 1/1/14 | 187,834 | ||||
| 485,080 | ||||||
Maryland (91.1%) | ||||||
| 400,000 | Anne Arundel County, MD, G.O., Prerefunded 3/1/12 @ 100, 5.375%, 3/1/13 | 428,492 | ||||
| 545,000 | Baltimore County, MD, Construction & Public Improvements Refunding G.O., 5.000%, 2/1/16 | 582,006 | ||||
| 500,000 | Baltimore County, MD, Oak Crest Village, Inc. Facilities Refunding Revenue, Series A, Callable 1/1/17 @ 100, 5.000%, 1/1/22 | 455,540 | ||||
| 215,000 | Baltimore County, MD, Shelter Elder Care, Series A, Prerefunded 11/1/09 @ 102, OID, 7.375%, 11/1/21 | 229,749 | ||||
| 85,000 | Baltimore, MD, Water Project, Unrefunded Revenue, Series A (FGIC), OID, 5.000%, 7/1/24 | 80,040 | ||||
| 45,000 | Frederick County, MD, Public Facilities Improvements G.O., 5.000%, 12/1/15 | 48,292 | ||||
| 500,000 | Frederick County, MD, Public Facilities Improvements G.O., 5.000%, 6/1/16 | 533,225 | ||||
| 55,000 | Frederick County, MD, Public Facilities Refunding G.O., 5.000%, 8/1/14 | 58,878 | ||||
| 180,000 | Maryland Health & Higher Educational Facilities Authority, Anne Arundel Medical Center Revenue, Callable 11/10/08 @ 101 (FSA), OID, 5.125%, 7/1/33 | 168,151 | ||||
| 400,000 | Maryland Health & Higher Educational Facilities Authority, Carrol County General Hospital Revenue, Callable 7/1/12 @ 100, 6.000%, 7/1/16 | 407,744 | ||||
| 500,000 | Maryland Health & Higher Educational Facilities Authority, Doctors Community Hospital Revenue, Series A, Callable 7/1/17 @ 100, 5.000%, 7/1/20 | 452,530 | ||||
| 65,000 | Maryland Health & Higher Educational Facilities Authority, Helix Health Issue Refunding Revenue (AMBAC), OID, 5.125%, 7/1/12 | 69,388 | ||||
| 515,000 | Maryland Health & Higher Educational Facilities Authority, Helix Health Issue Refunding Revenue (AMBAC), OID, 5.000%, 7/1/27 | 512,796 | ||||
| 35,000 | Maryland Health & Higher Educational Facilities Authority, Howard County General Hospital Refunding Revenue, Callable 11/10/08 @ 100, OID, 5.500%, 7/1/13 | 36,221 | ||||
| 385,000 | Maryland Health & Higher Educational Facilities Authority, MD Institutional College of Art Revenue, OID, 4.375%, 6/1/13 | 373,631 | ||||
| 300,000 | Maryland Health & Higher Educational Facilities Authority, Mercy Ridge Revenue, Series A, Prerefunded 4/1/13 @ 101, 6.000%, 4/1/35 | 330,660 | ||||
| 100,000 | Maryland Health & Higher Educational Facilities Authority, North Arundel Hospital Revenue, Prerefunded 7/1/10 @ 101, OID, 6.500%, 7/1/31 | $ | 107,645 | |||
| 500,000 | Maryland Health & Higher Educational Facilities Authority, Peninsula Regional Medical Center Revenue, Callable 7/1/16 @ 100, 5.000%, 7/1/26 | 454,435 | ||||
| 500,000 | Maryland Health & Higher Educational Facilities Authority, University of Maryland Medical Revenue, Prerefunded 7/1/11 @ 100, 5.750%, 7/1/21 | 533,175 | ||||
| 165,000 | Maryland Health & Higher Educational Facilities Authority, University of Maryland Medical System Refunding Revenue, 5.000%, 7/1/12 | 171,666 | ||||
| 250,000 | Maryland Health & Higher Educational Facilities Authority, University of Maryland Medical System Refunding Revenue, Prerefunded 7/1/12 @ 100, 5.750%, 7/1/17 | 269,972 | ||||
| 500,000 | Maryland Health & Higher Educational Facilities Authority, University of Maryland Medical System Refunding Revenue, Series F, 5.000%, 7/1/15 | 512,480 | ||||
| 110,000 | Maryland Health & Higher Educational Facilities Authority, University of Maryland Medical, Prerefunded 7/1/11 @ 100, OID, 5.250%, 7/1/34 | 115,862 | ||||
| 400,000 | Maryland Health & Higher Educational Facilities Authority, Washington County Hospital Revenue, 5.000%, 1/1/17 | 373,976 | ||||
| 225,000 | Maryland State Department of Transportation, County Transportation Transit Improvements Revenue, 5.250%, 12/15/17 | 242,215 | ||||
| 500,000 | Maryland State Department of Transportation, County Transportation Transit Improvements Revenue, Second Issue, 4.000%, 9/1/17 | 491,880 | ||||
| 270,000 | Maryland State Economic Development Corp., Lutheran World Relief Refugee Refunding Revenue, Callable 4/1/17 @ 100, 5.250%, 4/1/19 | 255,393 | ||||
| 150,000 | Maryland State Transportation Authority Grant & Revenue Anticipate, MD Transit Improvements Revenue, 5.000%, 3/1/16 | 159,246 | ||||
| 500,000 | Maryland State Transportation Authority, MD Transportation Facility Projects Revenue, Callable 7/1/14 @ 100 (FSA), 5.000%, 7/1/15 | 529,655 | ||||
| 395,000 | Maryland State, State & Local Facilities Loan Cash Flow Management G.O., Second Series, 5.000%, 8/1/11 | 417,258 | ||||
| 500,000 | Maryland State, State & Local Facilities Loan Public Improvements G.O., First Series, 5.500%, 3/1/12 | 538,535 | ||||
| 500,000 | Maryland State, State & Local Facilities Loan Public Improvements G.O., First Series, 5.000%, 3/1/16 | 534,125 | ||||
| 300,000 | Maryland State, State & Local Facilities Loan Public Improvements G.O., First Series, 5.000%, 3/15/16 | 320,532 | ||||
Continued
66
BB&T Maryland Intermediate Tax-Free Fund
Schedule of Portfolio Investments — (continued)
September 30, 2008
Principal | Fair Value | |||||
MUNICIPAL BONDS — (continued) | ||||||
Maryland — (continued) | ||||||
$500,000 | Maryland State, State & Local Facilities Loan Public Improvements G.O., Second Series, Callable 7/15/18 @ 100, 5.000%, 7/15/23 | $ | 501,115 | |||
250,000 | Maryland Water Quality Financing Administration, Revolving Loan Fund Sewer Improvements Revenue, 5.000%, 3/1/18 | 257,950 | ||||
170,000 | Montgomery County, MD, Construction & Public Improvement G.O., Prerefunded 2/1/11 @ 101, OID, 4.750%, 2/1/16 | 178,745 | ||||
445,000 | Montgomery County, MD, Construction & Public Improvements Refunding G.O., Series A, 5.000%, 5/1/15 | 476,724 | ||||
700,000 | Montgomery County, MD, Construction & Public Improvements Refunding G.O., Series A, 5.000%, 7/1/15 | 750,435 | ||||
370,000 | Montgomery County, MD, Construction & Public Improvements Refunding G.O., Series A, 5.000%, 7/1/17 | 392,585 | ||||
250,000 | Prince Georges County, MD, Construction & Public Improvements G.O., 5.000%, 10/1/14 | 267,907 | ||||
175,000 | Prince Georges County, MD, Construction & Public Improvements Refunding G.O. (FSA), 5.500%, 5/15/09 | 178,643 | ||||
145,000 | Prince Georges County, MD, Construction & Public Improvements Refunding G.O., Series B, Callable 7/15/17 @ 100, 5.000%, 7/15/23 | 144,240 | ||||
150,000 | University System of Maryland, Auxiliary Facilities & Tuition Refunding Revenue, Series A, 5.000%, 4/1/15 | 160,107 | ||||
275,000 | Washington Suburban Sanitation District, MD, Sewer Disposal Refunding G.O., 5.000%, 6/1/12 | 292,517 | ||||
100,000 | Washington Suburban Sanitation District, MD, Water Supply Refunding G.O., Prerefunded 6/1/11 @ 100, OID, 4.700%, 6/1/18 | 104,517 | ||||
| 14,500,878 | ||||||
Total Municipal Bonds | 14,985,958 | |||||
Shares | ||||||
INVESTMENT COMPANY (6.9%) | ||||||
1,100,389 | Federated Maryland Municipal Cash Trust | 1,100,389 | ||||
Total Investment Company | 1,100,389 | |||||
Total Investments — 101.1% | 16,086,347 | |||||
Net Other Assets (Liabilities) — (1.1)% | (170,167 | ) | ||||
NET ASSETS — 100.0% | $ | 15,916,180 | ||||
See footnote legend to Schedules of Portfolio Investments.
See accompanying notes to the financial statements.
67
BB&T North Carolina Intermediate Tax-Free Fund
Schedule of Portfolio Investments
September 30, 2008
| Principal Amount | Fair Value | |||||
| MUNICIPAL BONDS (96.1%) | ||||||
North Carolina (96.1%) | ||||||
| $ | 1,000,000 | Alamance County, NC, School Improvements G.O., Callable 2/1/16 @ 100, 5.000%, 2/1/19 | $ | 1,035,120 | ||
| 360,000 | Albemarle, NC, Healthcare Facilities Refunding Revenue, OID, 4.500%, 10/1/11 | 359,302 | ||||
| 265,000 | Albemarle, NC, Hospital Authority Revenue, OID, 4.500%, 10/1/12 | 260,670 | ||||
| 1,150,000 | Bladen County, NC, School Improvements G.O., Prerefunded 5/1/10 @ 101.50 (FSA), 5.600%, 5/1/13 | 1,221,726 | ||||
| 1,065,000 | Broad River Water Authority, NC, Water System Refunding Revenue, Callable 6/1/15 @ 100 (XLCA), 5.000%, 6/1/18 | 1,040,601 | ||||
| 775,000 | Broad River Water Authority, NC, Water System Refunding Revenue, Callable 6/1/15 @ 100 (XLCA), 5.000%, 6/1/19 | 744,883 | ||||
| 800,000 | Caldwell County, NC, Public Improvements G.O., Series A, Callable 11/6/08 @ 102, OID, 4.700%, 6/1/12 | 816,592 | ||||
| 1,000,000 | Cape Fear Public Utility Authority, NC, Water & Sewer System Revenue, Callable 8/1/18 @ 100, 5.000%, 8/1/26 | 955,590 | ||||
| 500,000 | Cape Fear Public Utility Authority, NC, Water & Sewer System Revenue, Callable 8/1/18 @ 100, 5.000%, 8/1/27 | 475,365 | ||||
| 1,010,000 | Charlotte, NC, Refunding G.O., Series B, 5.000%, 6/1/15 | 1,084,265 | ||||
| 1,000,000 | Charlotte, NC, Storm Water Fee Public Improvements Revenue, Callable 6/1/16 @ 100, 5.000%, 6/1/23 | 991,730 | ||||
| 1,960,000 | Charlotte-Mecklenburg Hospital Authority, NC, Carolinas Health Care System Revenue, Series A, Prerefunded 1/15/15 @ 100, OID, 5.000%, 1/15/45 | 2,071,975 | ||||
| 2,710,000 | Cumberland County, NC, Refunding G.O. (MBIA), 5.000%, 5/1/13 | 2,894,632 | ||||
| 2,205,000 | Cumberland County, NC, Refunding G.O. (MBIA), 5.000%, 5/1/14 | 2,361,379 | ||||
| 1,000,000 | Durham, NC, Refunding G.O., 5.000%, 2/1/13 | 1,067,320 | ||||
| 1,000,000 | Durham, NC, Refunding G.O., 5.000%, 4/1/15 | 1,072,730 | ||||
| 1,000,000 | Durham, NC, Water & Sewer Utilities System Revenue, Callable 6/1/11 @ 101, 5.000%, 6/1/12 | 1,054,400 | ||||
| 1,000,000 | Gastonia, NC, Combined Utilities Systems Refunding Revenue (MBIA), 5.000%, 5/1/10 | 1,030,430 | ||||
| 400,000 | Goldsboro, NC, Sewer Improvements G.O., Callable 11/6/08 @ 102, 4.250%, 6/1/13 | 408,220 | ||||
| 1,455,000 | Greenville, NC, Greenville Enterprise Systems Refunding Revenue (FSA), 5.500%, 9/1/10 | 1,526,848 | ||||
| 1,000,000 | Guilford County, NC, Public Improvements G.O., Series B, 5.000%, 10/1/09 | 1,028,320 | ||||
| 2,075,000 | Guilford County, NC, Public Improvements G.O., Series B, Prerefunded 10/1/10 @ 102, OID, 5.250%, 10/1/15 | 2,221,038 | ||||
| 1,325,000 | Harnett County, NC, School Improvements Certificate of Participation, Series A, Callable 12/1/17 @ 100 (FSA), 5.000%, 12/1/21 | 1,304,330 | ||||
| 1,000,000 | High Point, NC, High Point Combined Enterprise Systems Revenue, Callable 11/1/18 @ 100 (FSA), 5.000%, 11/1/26 | 970,990 | ||||
| 1,180,000 | Iredell County Public Facilities Corp., NC, School Projects Revenue, Prerefunded 6/1/10 @ 101 (AMBAC), 6.000%, 6/1/14 | 1,258,104 | ||||
| 895,000 | Iredell County, NC, School Projects Certificate of Participation (FSA), 5.250%, 6/1/17 | 934,523 | ||||
| 770,000 | Iredell County, NC, School Projects Certificate of Participation (FSA), 5.000%, 6/1/18 | 780,857 | ||||
| 1,070,000 | Johnston County Finance Corp., NC, School & Museum Projects Revenue, Prerefunded 8/1/09 @ 101 (FSA), 5.500%, 8/1/10 | 1,108,777 | ||||
| 1,000,000 | Johnston County, NC, Public Improvements G.O., Callable 2/1/17 @ 100 (FGIC), 5.000%, 2/1/24 | 997,810 | ||||
| 1,000,000 | Johnston County, NC, School Improvements G.O., Prerefunded 3/1/10 @ 101 (FGIC), 5.500%, 3/1/12 | 1,051,750 | ||||
| 1,545,000 | Johnston Memorial Hospital Authority Revenue (FSA FHA), 5.000%, 10/1/16 | 1,588,075 | ||||
| 1,000,000 | Lincoln County, NC, Correctional Facilities Improvements, Certificate of Participation (FSA), 4.000%, 6/1/10 | 1,020,160 | ||||
| 200,000 | Lincolnton, NC, Lincolnton Enterprise Systems Refunding Revenue (XLCA), 4.000%, 5/1/12 | 197,002 | ||||
| 600,000 | Lumberton, NC, Sewer Improvements G.O., Callable 11/6/08 @ 101, 4.750%, 2/1/10 | 606,792 | ||||
| 1,500,000 | Mecklenburg County, NC, School Improvements G.O., Series C, Callable 10/6/08 @ 100, 7.480%, 2/1/17* | 1,500,000 | ||||
| 25,000 | Mooresville, NC, Enterprise Systems Revenue (FGIC), 4.000%, 5/1/13 | 25,062 | ||||
| 590,000 | Mooresville, NC, Telecommunications Improvements Certificate of Participation, 5.000%, 9/1/13 | 614,220 | ||||
| 1,495,000 | Mooresville, NC, Telecommunications Improvements Certificate of Participation, 5.000%, 9/1/16 | 1,543,573 | ||||
| 1,000,000 | New Hanover County, NC, New Hanover Regional Medical Center Project Revenue, Callable 10/1/09 @ 101 (MBIA), 5.250%, 10/1/12 | 1,028,150 | ||||
| 795,000 | New Hanover County, NC, Refunding G.O., Callable 11/1/13 @ 100, 5.000%, 11/1/14 | 846,397 | ||||
| 375,000 | North Carolina Capital Facilities Finance Agency, Brevard College Corp. Refunding Revenue, 4.250%, 10/1/15 | 342,337 | ||||
| 175,000 | North Carolina Capital Facilities Finance Agency, Brevard College Corp. Refunding Revenue, OID, 4.000%, 10/1/12 | 166,649 | ||||
| 235,000 | North Carolina Capital Facilities Finance Agency, Brevard College Corp. Refunding Revenue, OID, 4.125%, 10/1/13 | 221,180 | ||||
| 295,000 | North Carolina Capital Facilities Finance Agency, Brevard College Corp. Refunding Revenue, OID, 4.125%, 10/1/14 | 272,860 | ||||
| 1,135,000 | North Carolina Capital Facilities Finance Agency, Duke University Project Refunding Revenue, Series A, Prerefunded 10/1/11 @ 100, OID, 5.125%, 10/1/26 | 1,203,770 | ||||
| 670,000 | North Carolina Capital Facilities Finance Agency, Meredith College Refunding Revenue, 5.000%, 6/1/16 | 641,257 | ||||
Continued
68
BB&T North Carolina Intermediate Tax-Free Fund
Schedule of Portfolio Investments — (continued)
September 30, 2008
| Principal Amount | Fair Value | |||||
| MUNICIPAL BONDS — (continued) | ||||||
North Carolina — (continued) | ||||||
| $ | 1,230,000 | North Carolina Capital Facilities Finance Agency, Meredith College Refunding Revenue, 5.000%, 6/1/17 | $ | 1,165,363 | ||
| 1,305,000 | North Carolina Capital Facilities Finance Agency, Meredith College Refunding Revenue, Callable 6/1/18 @ 100, OID, 5.000%, 6/1/19 | 1,194,466 | ||||
| 575,000 | North Carolina Capital Facilities Finance Agency, Meredith College Refunding Revenue, Callable 6/1/18 @ 100, OID, 5.375%, 6/1/21 | 527,585 | ||||
| 570,000 | North Carolina Capital Facilities Finance Agency, Meredith College Refunding Revenue, OID, 4.250%, 6/1/14 | 538,393 | ||||
| 1,555,000 | North Carolina Eastern Municipal Power Agency, Power System Refunding Revenue, Series A, 5.000%, 1/1/14 | 1,559,152 | ||||
| 2,410,000 | North Carolina Eastern Municipal Power Agency, Power System Refunding Revenue, Series A, Callable 1/1/16 @ 100 (AMBAC), 5.250%, 1/1/20 | 2,342,014 | ||||
| 1,450,000 | North Carolina Eastern Municipal Power Agency, Power System Refunding Revenue, Series A, Callable 1/1/18 @ 100 (Assured Guaranty), 5.250%, 1/1/19 | 1,470,039 | ||||
| 750,000 | North Carolina Eastern Municipal Power Agency, Power System Refunding Revenue, Series A, OID, 5.000%, 1/1/17 | 779,580 | ||||
| 1,000,000 | North Carolina Eastern Municipal Power Agency, Power System Refunding Revenue, Series A, Prerefunded 1/1/22 @ 100, OID, 4.500%, 1/1/24 | 964,450 | ||||
| 2,290,000 | North Carolina Eastern Municipal Power Agency, Power System Revenue, Series A, OID, 6.400%, 1/1/21 | 2,602,448 | ||||
| 150,000 | North Carolina Infrastructure Finance Corporation, Correctional Facilities Series A Certificate of Participation, 5.000%, 2/1/12 | 157,285 | ||||
| 180,000 | North Carolina Medical Care Commission, Arbor Acres Unlimited Refunding Revenue, 4.500%, 1/1/17 | 167,720 | ||||
| 515,000 | North Carolina Medical Care Commission, Carolina Medicorp Project Revenue, Callable 11/6/08 @ 100, OID, 5.250%, 5/1/09 | 515,989 | ||||
| 1,000,000 | North Carolina Medical Care Commission, NC, First Mortgage Deerfield Revenue, Series A, Callable 11/1/18 @ 100, OID, 6.000%, 11/1/33 | 896,550 | ||||
| 2,000,000 | North Carolina Medical Care Commission, NC, First Mortgage Givens Estates Revenue, Series A, Prerefunded 7/1/13 @ 101, OID, 6.500%, 7/1/32 | 2,266,160 | ||||
| 2,000,000 | North Carolina Medical Care Commission, NC, Health Care Facilities Revenue, University Eastern Carolina, Series C1, Callable 10/6/08 @ 100 (AMBAC), 8.000%, 12/1/36* | 2,000,000 | ||||
| 2,310,000 | North Carolina Medical Care Commission, NC, Health Care Housing ARC Projects Revenue, Series A (HUD Section 8), 4.650%, 10/1/14 | 2,203,948 | ||||
| 1,725,000 | North Carolina Medical Care Commission, NC, Health Care Housing ARC Projects Revenue, Series A, Callable 10/1/14 @ 101 (HUD Section 8), 5.500%, 10/1/24 | 1,547,049 | ||||
| 1,875,000 | North Carolina Medical Care Commission, NC, Novant Health Obligation Group Refunding Revenue, Group A, Callable 11/1/13 @ 100, 5.000%, 11/1/14 | 1,938,637 | ||||
| 750,000 | North Carolina Medical Care Commission, NC, Stanly Memorial Hospital Project Refunding Revenue (AMBAC), OID, 5.450%, 10/1/08 | 750,052 | ||||
| 1,000,000 | North Carolina Medical Care Commission, NC, Stanly Memorial Hospital Project Revenue, Callable 10/1/09 @ 101, OID, 6.250%, 10/1/19 | 1,004,840 | ||||
| 335,000 | North Carolina Medical Care Commission, Pitt County Hospital Refunding Revenue, Series A, Prerefunded 12/1/08 @ 101, 5.250%, 12/1/13 | 339,583 | ||||
| 1,115,000 | North Carolina Medical Care Commission, Wilson Medical Center Refunding Revenue, 5.000%, 11/1/17 | 1,091,306 | ||||
| 2,000,000 | North Carolina Municipal Power Agency No. 1, Catawba Electric Power Refunding Revenue, Series A, 5.250%, 1/1/13 | 2,087,200 | ||||
| 1,000,000 | North Carolina Municipal Power Agency No. 1, Catawba Electric Power Refunding Revenue, Series A, 5.250%, 1/1/17 | 1,033,040 | ||||
| 105,000 | North Carolina Municipal Power Agency No. 1, Catawba Electric Power Revenue, OID, 5.000%, 1/1/20 | 107,629 | ||||
| 1,000,000 | North Carolina State University at Raleigh Revenue, Series B, 4.000%, 10/1/12 | 1,025,860 | ||||
| 1,350,000 | North Carolina State University at Raleigh Revenue, Series B, 4.000%, 10/1/14 | 1,371,627 | ||||
| 500,000 | North Carolina State University at Raleigh Revenue, Series B, 4.000%, 10/1/15 | 503,040 | ||||
| 1,000,000 | North Carolina State, Clean Water G.O., Series A, Callable 3/1/16 @ 100, 5.000%, 3/1/17 | 1,056,390 | ||||
| 1,385,000 | North Carolina State, G.O., Series A, 5.000%, 6/1/12 | 1,474,208 | ||||
| 2,900,000 | North Carolina State, Refunding G.O., Series A, 5.000%, 9/1/16 | 3,108,510 | ||||
| 1,030,000 | North Carolina State, Vehicle Grant Revenue, Highway Improvements (MBIA), 5.000%, 3/1/16 | 1,078,678 | ||||
| 1,080,000 | North Carolina State, Vehicle Grant Revenue, Highway Improvements (MBIA), 5.000%, 3/1/17 | 1,120,522 | ||||
| 1,000,000 | North Carolina State, Vehicle Grant Revenue, Highway Improvements, Callable 3/1/17 @ 100 (MBIA), 5.000%, 3/1/18 | 1,024,120 | ||||
| 195,000 | Onslow County, NC, School Project, Certificate of Participation, Callable 6/1/16 @ 100 (XLCA), 5.000%, 6/1/18 | 195,911 | ||||
| 360,000 | Onslow Water & Sewer Authority, NC, Combined Enterprise System Revenue, Series A (MBIA), 5.000%, 6/1/17 | 372,283 | ||||
| 330,000 | Onslow Water & Sewer Authority, NC, Combined Enterprise System Revenue, Series A (MBIA), 5.000%, 6/1/18 | 337,729 | ||||
Continued
69
BB&T North Carolina Intermediate Tax-Free Fund
Schedule of Portfolio Investments — (continued)
September 30, 2008
| Principal Amount | Fair Value | |||||
| MUNICIPAL BONDS — (continued) | ||||||
North Carolina — (continued) | ||||||
| $ | 1,040,000 | Pasquotank County, NC, Refunding Certificate of Participation (MBIA), 5.250%, 6/1/18 | $ | 1,079,468 | ||
| 1,280,000 | Piedmont Triad Airport Authority, NC, Refunding Revenue, Series A, Prerefunded 7/1/09 @ 101 (FSA), 6.375%, 7/1/16 | 1,331,520 | ||||
| 2,440,000 | Pitt County, NC, Pitt County Memorial Hospital Project Refunding Revenue, Callable 11/6/08 @ 100, OID, 5.500%, 12/1/15 | 2,546,823 | ||||
| 1,000,000 | Randolph County, NC, Public Improvements Certificate of Participation, Prerefunded 6/1/09 @ 101 (FSA), OID, 5.300%, 6/1/13 | 1,029,830 | ||||
| 1,955,000 | Rockingham County, NC, Certificate of Participation (Assured Guaranty), 5.000%, 4/1/17 | 2,021,333 | ||||
| 160,000 | Surry County, NC, Northern Hospital District Revenue, 4.000%, 10/1/10 | 159,149 | ||||
| 1,085,000 | Surry County, NC, Northern Hospital District Revenue, Callable 4/1/18 @ 100, OID, 5.500%, 10/1/21 | 1,001,477 | ||||
| 210,000 | Surry County, NC, Northern Hospital District Revenue, OID, 4.000%, 10/1/11 | 205,813 | ||||
| 600,000 | Thomasville, NC, Thomasville Enterprise Systems Revenue, Series B, Callable 11/6/08 @ 102 (FSA), OID, 5.100%, 6/1/17 | 612,948 | ||||
| 1,050,000 | Union County, NC, School Improvements G.O., Series D (MBIA), 5.000%, 3/1/14 | 1,125,337 | ||||
| 5,000,000 | Union County, NC, School Improvements G.O., Series D, Callable 3/1/17 @ 100 (MBIA), 5.000%, 3/1/19 | 5,196,150 | ||||
| 315,000 | University of North Carolina at Wilmington, Student Housing Projects Certificate of Participation (Assured Guaranty), 4.250%, 6/1/18 | 301,118 | ||||
| 225,000 | University of North Carolina at Wilmington, Student Housing Projects Certificate of Participation, Callable 6/1/18 @ 100 (Assured Guaranty), 5.000%, 6/1/23 | 215,284 | ||||
| 400,000 | University of North Carolina System College Improvements Revenue, Series A (AMBAC), 5.000%, 4/1/14 | 419,380 | ||||
| 3,000,000 | Wake County, NC, Public Improvements G.O., 5.000%, 3/1/12 | 3,184,920 | ||||
| 1,310,000 | Wake County, NC, Public Improvements G.O., Callable 11/6/08 @ 102, OID, 4.600%, 3/1/13 | 1,337,497 | ||||
| 1,900,000 | Wake County, NC, School Improvements G.O., Callable 5/1/15 @ 100, 5.000%, 5/1/21 | 1,916,891 | ||||
| 1,000,000 | Wake County, NC, School Improvements G.O., Prerefunded 2/1/10 @ 100.50, 5.300%, 2/1/11 | 1,042,081 | ||||
| 1,000,000 | Wake County, NC, Wake County Hospital Revenue (MBIA), OID, 5.125%, 10/1/13 | 1,075,410 | ||||
| 1,495,000 | Winston-Salem, NC, Certificate of Participation, Series C, Prerefunded 6/1/11 @ 100, 5.250%, 6/1/15 | 1,582,308 | ||||
| 1,305,000 | Winston-Salem, NC, Water & Sewer System Refunding Revenue, Series A, Callable 6/1/17 @ 100, 5.000%, 6/1/19 | 1,345,938 | ||||
| 1,000,000 | Winston-Salem, NC, Water & Sewer Systems Refunding Revenue, Callable 6/1/15 @ 100, 5.000%, 6/1/20 | 1,014,650 | ||||
Total Municipal Bonds | 119,612,442 | |||||
| Shares | ||||||
| INVESTMENT COMPANY (2.3%) | ||||||
| 2,910,160 | BlackRock North Carolina Municipal Money Market Portfolio, Institutional Class | 2,910,160 | ||||
Total Investment Company | 2,910,160 | |||||
| | Total Investments — 98.4% (Cost $124,169,958) | 122,522,602 | ||||
| Net Other Assets (Liabilities) — 1.6% | 2,007,787 | |||||
| NET ASSETS — 100.0% | $ | 124,530,389 | ||||
See footnote legend to Schedules of Portfolio Investments.
See accompanying notes to the financial statements.
70
BB&T South Carolina Intermediate Tax-Free Fund
Schedule of Portfolio Investments
September 30, 2008
| Principal Amount | Fair Value | |||||
| MUNICIPAL BONDS (93.0%) | ||||||
South Carolina (93.0%) | ||||||
| $ | 95,000 | Berkeley County, SC, Water & Sewer Systems Improvements Revenue, Prerefunded 6/1/13 @ 100 (MBIA), OID, 4.750%, 6/1/28 | $ | 100,364 | ||
| 180,000 | Cayce, SC, Waterworks & Sewer Revenue Refunding & Improvements Revenue, Series A (XLCA), 4.250%, 7/1/13 | 181,998 | ||||
| 225,000 | Cayce, SC, Waterworks & Sewer Systems Refunding & Improvements Revenue, Series A (XLCA), 5.250%, 7/1/16 | 236,151 | ||||
| 185,000 | Cayce, SC, Waterworks & Sewer Systems Refunding & Improvements Revenue, Series A (XLCA), 5.250%, 7/1/17 | 192,691 | ||||
| 75,000 | Charleston County, SC, Hospital Facilities Revenue Care Alliance Health Series B1 (FSA), 5.000%, 8/15/15 | 76,938 | ||||
| 500,000 | Charleston County, SC, Hospital Facilities Revenue Care Alliance Health Series B1 (FSA), 5.000%, 8/15/16 | 508,105 | ||||
| 430,000 | Charleston County, SC, Solid Waste Refunding Revenue (AMBAC), 5.000%, 3/1/09 | 434,730 | ||||
| 65,000 | Charleston, SC, Refunding & Capital Improvements Revenue, 5.125%, 1/1/12 | 68,854 | ||||
| 415,000 | College of Charleston, SC, Academic & Administrative Facilities Revenue, Series D (XLCA), 4.250%, 4/1/12 | 418,967 | ||||
| 485,000 | College of Charleston, SC, Academic & Administrative Facilities Revenue, Series D (XLCA), 4.500%, 4/1/17 | 473,054 | ||||
| 15,000 | College of Charleston, SC, Higher Education Facilities Revenue, Series C (XLCA), 4.500%, 4/1/14 | 15,094 | ||||
| 275,000 | Dorchester County, SC, Waterworks Revenue (MBIA), 5.000%, 10/1/15 | 288,195 | ||||
| 125,000 | Educational Facilities Authority, SC, Wofford College Revenue, Series A, 4.250%, 4/1/17 | 117,990 | ||||
| 630,000 | Florence County, SC, McLeod Regional Medical Center Project Refunding Revenue, Series A, Callable 11/6/08 @ 102 (MBIA), 5.250%, 11/1/11 | 643,539 | ||||
| 100,000 | Florence, SC, New Public Housing Authority Revenue, Callable 2/1/09 @ 100 (U.S. Government Guaranteed), 5.750%, 8/1/10 | 104,873 | ||||
| 440,000 | Fort Mill School Facilities Corp., SC, Installment Purchase Revenue, 5.000%, 12/1/12 | 450,639 | ||||
| 335,000 | Fort Mill School Facilities Corp., SC, Installment Purchase Revenue, Callable 12/1/16 @ 100, 5.250%, 12/1/18 | 333,801 | ||||
| 260,000 | Georgetown County School District, SC, Refunding G.O., Series B, Callable 3/1/12 @ 102 (FSA, SCSDE), 5.000%, 3/1/16 | 270,299 | ||||
| 275,000 | Georgetown County School District, SC, School Improvements G.O., Prerefunded 3/1/11 @ 100 (SCSDE), 5.750%, 3/1/13 | 293,197 | ||||
| 380,000 | Greenville, SC, Waterworks Revenue, Callable 2/1/13 @ 100, 5.250%, 2/1/19 | 393,467 | ||||
| 480,000 | Horry County School District, SC, School Improvements G.O., Series A (SCSDE), 5.000%, 3/1/11 | 503,928 | ||||
| 250,000 | Horry County School District, SC, School Improvements G.O., Series A, Callable 3/1/12 @ 100 (SCSDE), 5.375%, 3/1/15 | 261,625 | ||||
| 305,000 | Kershaw County, SC, Facilities Improvements G.O., Series A, Callable 11/6/08 @ 100 (FSA, State Aid Withholding), 4.000%, 4/1/13 | 305,116 | ||||
| 475,000 | Lancaster County, SC, Edenmoor Improvements District, Special Assessment, Series A, Callable 12/1/16 @ 101, 5.750%, 12/1/37(f) | 334,813 | ||||
| 495,000 | Laurens County School District No. 55, SC, Refunding Revenue, Callable 12/1/15 @ 100, 5.250%, 12/1/24 | 432,704 | ||||
| 265,000 | Lexington County, SC, Health Services District Income Hospital Refunding & Improvements Revenue, Prerefunded 11/1/13 @ 100, OID, 5.500%, 11/1/32 | 285,394 | ||||
| 600,000 | Lexington County, SC, Health Services District Income Hospital Refunding Revenue, 5.000%, 11/1/15 | 596,652 | ||||
| 200,000 | Lexington One School Facilities Corp., SC, Lexington County School District No. 1 Revenue, Callable 12/1/16 @ 100, 5.000%, 12/1/26 | 180,910 | ||||
| 15,000 | Medical University Hospital Authority, SC, FHA-Insured Refunding Revenue, Series A, Callable 8/15/14 @ 100 (MBIA FHA 242), 5.250%, 2/15/22 | 14,675 | ||||
| 500,000 | Medical University Hospital Authority, SC, Refunding Revenue, Series A, 6.000%, 8/15/12 | 548,610 | ||||
| 250,000 | Medical University of South Carolina, Hospital Facilities Revenue, Prerefunded 7/1/09 @ 101, OID, 5.700%, 7/1/12 | 258,678 | ||||
| 20,000 | Myrtle Beach, SC, Public Improvements G.O., Series A (Assured Guaranty), 5.000%, 3/1/17 | 21,139 | ||||
| 115,000 | Myrtle Beach, SC, Public Improvements G.O., Series A (Assured Guaranty), 5.000%, 3/1/18 | 120,533 | ||||
| 420,000 | Piedmont Municipal Power Agency, SC, Power System Refunding Revenue (MBIA), OID, 5.375%, 1/1/25 | 433,238 | ||||
| 500,000 | Piedmont Municipal Power Agency, SC, Power System Refunding Revenue, Series A3, 5.000%, 1/1/16 | 498,460 | ||||
| 460,000 | Piedmont Municipal Power Agency, SC, Power System Refunding Revenue, Series A3 (Assured Guaranty), 5.000%, 1/1/18 | 466,776 | ||||
| 400,000 | Richland County, SC, Environmental Improvements Refunding Revenue, Series A, 4.600%, 9/1/12 | 380,412 | ||||
| 310,000 | Richland County, SC, School District No. 2, School Improvements G.O., Series A, Callable 4/1/13 @ 102 (SCSDE), 5.000%, 4/1/17 | 318,689 | ||||
| 305,000 | Richland County, SC, School District No. 2, School Improvements G.O., Series B, Callable 5/1/17 @ 100 (MBIA, SCSDE), 5.000%, 5/1/20 | 309,453 | ||||
| 50,000 | Richland-Lexington Airport District, SC, Columbia Metropolitan Airport Revenue, Series A, Callable 1/1/11 @ 101 (FSA), OID, 4.875%, 1/1/17 | 50,422 | ||||
Continued
71
BB&T South Carolina Intermediate Tax-Free Fund
Schedule of Portfolio Investments — (continued)
September 30, 2008
| Principal Amount | Fair Value | |||||
| MUNICIPAL BONDS — (continued) | ||||||
South Carolina — (continued) | ||||||
| $ | 425,000 | Scago Educational Facilities Corp. for Colleton School District, SC, Pickens County Project Revenue (FSA), 5.000%, 12/1/14 | $ | 445,804 | ||
| 500,000 | Scago Educational Facilities Corp. for Colleton School District, SC, Pickens County Project Revenue, Callable 12/1/16 @ 100 (FSA), 5.000%, 12/1/23 | 475,950 | ||||
| 380,000 | Scago Educational Facilities Corp. for Colleton School District, SC, School Improvements Revenue (Assured Guaranty), 5.000%, 12/1/15 | 390,268 | ||||
| 205,000 | South Carolina Educational Facilities Authority for Private Nonprofit Institutions, SC, Wofford College Project Revenue, 4.000%, 4/1/15 | 200,463 | ||||
| 190,000 | South Carolina Educational Facilities Authority for Private Nonprofit Institutions, SC, Wofford College Project Revenue, 4.000%, 4/1/16 | 182,079 | ||||
| 525,000 | South Carolina Jobs-Economic Development Authority, Anderson Area Medical Center Revenue, Callable 2/1/09 @ 101 (FSA), 5.500%, 2/1/11 | 534,082 | ||||
| 500,000 | South Carolina Jobs-Economic Development Authority, Kershaw County Medical Center Project Revenue, OID, 5.000%, 9/15/18 | 467,390 | ||||
| 200,000 | South Carolina Jobs-Economic Development Authority, Refunding & Improvement- Palmetto Health Facilities Revenue, Series C, 6.000%, 8/1/12 | 208,076 | ||||
| 500,000 | South Carolina State Public Service Authority Refunding Revenue, Series A, Callable 1/1/17 @ 100 (AMBAC), 5.000%, 1/1/23 | 483,145 | ||||
| 555,000 | South Carolina State Public Service Authority Refunding Revenue, Series A, Callable 1/1/17 @ 100 (AMBAC), 5.000%, 1/1/26 | 527,250 | ||||
| 150,000 | South Carolina State Public Service Authority, Electricity Lights & Power Improvements Revenue, Series A, Callable 1/1/10 @ 101 (MBIA), 5.500%, 1/1/11 | 155,373 | ||||
| 150,000 | South Carolina State Public Service Authority, Electricity Lights & Power Refunding & Improvements Revenue, Series A, Callable 1/1/12 @ 101 (FSA), 5.250%, 1/1/17 | 153,483 | ||||
| 220,000 | South Carolina Transportation Infrastructure Bank, Highway Improvements Revenue, Series A, Callable 10/1/13 @ 100 (AMBAC), 5.000%, 10/1/14 | 228,270 | ||||
| 425,000 | South Carolina Transportation Infrastructure Bank, Transit Improvements Revenue, Series A (XLCA), 5.000%, 10/1/15 | 439,654 | ||||
| 250,000 | South Carolina Transportation Infrastructure Bank, Transit Improvements Revenue, Series A, Callable 10/1/16 @ 100 (XLCA), 5.000%, 10/1/22 | 236,038 | ||||
| 525,000 | Spartanburg County School District No. 5, SC, School Improvements G.O. (SCSDE), 5.250%, 5/1/10 | 547,386 | ||||
| 250,000 | Spartanburg County, SC, Regional Health Services District Refunding Revenue, Series D (Assured Guaranty), 4.250%, 4/15/16 | 243,865 | ||||
| 100,000 | Sumter, SC, Waterworks & Sewer System Improvements Revenue, Callable 12/1/17 @ 100 (XLCA), 5.000%, 12/1/27 | 91,349 | ||||
| 500,000 | York County, SC, Rock Hill School District No. 3, G.O., Series A, Callable 3/1/09 @ 101 (SCSDE), OID, 5.000%, 3/1/12 | 508,820 | ||||
| 510,000 | York County, SC, School District No. 3, G.O., Callable 3/1/17 @ 100 (FSA, SCSDE), 5.000%, 3/1/22 | 500,065 | ||||
| 405,000 | York County, SC, School District No. 4, Fort Mill G.O., Callable 3/1/14 @ 100 (SCSDE), 5.000%, 3/1/34 | 382,725 | ||||
Total Municipal Bonds | 19,326,708 | |||||
Shares | |||||
INVESTMENT COMPANY (3.8%) | |||||
| 793,285 | Federated Tax-Free Obligations Fund, | ||||
Institutional Service Class | 793,285 | ||||
Total Investment Company | 793,285 | ||||
Total Investments — 96.8% | 20,119,993 | ||||
Net Other Assets (Liabilities) — 3.2% | 659,792 | ||||
NET ASSETS — 100.0% | $ | 20,779,785 | |||
See footnote legend to Schedules of Portfolio Investments.
See accompanying notes to the financial statements.
72
BB&T Virginia Intermediate Tax-Free Fund
Schedule of Portfolio Investments
September 30, 2008
| Principal Amount | Fair Value | |||||
| MUNICIPAL BONDS (94.9%) | ||||||
District of Columbia (2.0%) | ||||||
| $ | 1,615,000 | Washington Metropolitan Area Transit Authority, Refunding Revenue (FGIC), 6.000%, 7/1/09 | $ | 1,650,466 | ||
Virginia (92.9%) | ||||||
| 1,000,000 | Alexandria, VA, Construction & Public Improvements G.O., 5.000%, 1/1/13 | 1,066,070 | ||||
| 1,000,000 | Alexandria, VA, Public Improvements G.O., Series A, 5.000%, 6/15/16 | 1,070,710 | ||||
| 1,000,000 | Alexandria, VA, Refunding G.O. (State Aid Withholding), 5.000%, 6/15/21 | 1,020,800 | ||||
| 1,000,000 | Arlington County, VA, Industrial Development Authority, VA Hospital Center Arlington Health System Revenue, 5.500%, 7/1/10 | 1,035,040 | ||||
| 1,000,000 | Arlington County, VA, Public Improvements G.O., 5.000%, 1/15/15 | 1,070,990 | ||||
| 1,000,000 | Arlington County, VA, Public Improvements G.O., Prerefunded 6/1/09 @ 100 (State Aid Withholding), 5.125%, 6/1/11 | 1,019,030 | ||||
| 1,095,000 | Arlington County, VA, Refunding & Improvements G.O., Callable 5/15/14 @ 100, 5.000%, 5/15/15 | 1,163,788 | ||||
| 2,500,000 | Chesterfield County, VA, Industrial Development Authority, Electric & Power Co. Revenue, Callable 11/6/08 @ 100.50, 5.500%, 10/1/09 | 2,506,775 | ||||
| 2,325,000 | Chesterfield County, VA, Refunding Public Improvements G.O., 5.000%, 1/1/14 | 2,488,587 | ||||
| 1,000,000 | Fairfax County, VA, Economic Development Authority, Parking Facility Improvements, Vienna II Metrorail Revenue, 1st Series, Prerefunded 9/1/09 @ 102, OID, 5.250%, 9/1/10 | 1,045,740 | ||||
| 1,000,000 | Hampton Roads Regional Jail Authority Refunding Revenue, Callable 7/1/14 @ 100 (MBIA), 5.250%, 7/1/22 | 1,000,900 | ||||
| 1,390,000 | Henrico County, VA, Economic Development Authority, Virginia United Methodist Refunding Revenue, Series A, Prerefunded 6/1/12 @100, OID, 6.700%, 6/1/27 | 1,547,918 | ||||
| 1,000,000 | Henrico County, VA, Water & Sewer Refunding Revenue, Callable 5/1/09 @ 102, 5.250%, 5/1/11 | 1,032,600 | ||||
| 1,000,000 | Loudoun County, VA, Public Improvements G.O., Series B, 5.000%, 12/1/14 | 1,077,190 | ||||
| 1,000,000 | Loudoun County, VA, Public Improvements G.O., Series B, 5.000%, 12/1/15 | 1,075,620 | ||||
| 2,040,000 | Loudoun County, VA, Public Improvements G.O., Series B (State Aid Withholding), 5.000%, 12/1/16 | 2,186,309 | ||||
| 1,000,000 | Loudoun County, VA, Sanitation Authority, Water Utility Improvements Revenue (FSA), 5.750%, 1/1/11 | 1,063,020 | ||||
| 1,465,000 | Montgomery County, VA, Industrial Development Authority Revenue, 5.000%, 2/1/18 | 1,477,628 | ||||
| 2,500,000 | New River Valley Regional Jail Authority, Grant Anticipation Notes Correctional Facility Improvements Revenue, Callable 4/1/10 @ 100, 4.000%, 4/1/11 | 2,510,500 | ||||
| 1,650,000 | Newport News Economic Development Authority, Public Improvements Revenue, Series A, Callable 1/15/16 @ 100, 5.250%, 1/15/25 | 1,616,274 | ||||
| 1,105,000 | Newport News, VA, Refunding G.O., Series B, (State Aid Withholding), 5.000%, 2/1/15 | 1,181,753 | ||||
| 1,000,000 | Newport News, VA, Refunding Public Improvements-Water G.O., Series B, 5.250%, 7/1/21 | 1,024,230 | ||||
| 1,000,000 | Newport News, VA, School Improvements G.O., Series A, Prerefunded 5/1/10 @ 102, OID, 5.500%, 5/1/13 | 1,065,470 | ||||
| 1,030,000 | Norfolk, VA, Water Utility Improvements Refunding Revenue, Callable 11/6/08 @ 101 (FSA), 5.125%, 11/1/11 | 1,042,030 | ||||
| 1,000,000 | Norfolk, VA, Water Utility Improvements Revenue, Callable 11/1/18 @ 100, 5.000%, 11/1/23 | 975,140 | ||||
| 400,000 | Northern Virginia Transportation District Commission, VA, Commuter Rail Refunding Revenue, Virginia Railway Express Project, Callable 11/6/08 @ 102 (FSA), 5.375%, 7/1/14 | 408,652 | ||||
| 1,065,000 | Pittsylvania County, VA, School Improvements G.O., Series B, Callable 3/1/11 @ 102 (MBIA, State Aid Withholding), 5.625%, 3/1/15 | 1,124,140 | ||||
| 1,000,000 | Prince William County, VA, Industrial Development Authority Potomac Hospital Corporation Revenue, Callable 10/1/13 @ 102, 5.500%, 10/1/18 | 1,002,590 | ||||
| 825,000 | Prince William County, VA, Service Authority, Water & Sewer Systems Refunding Revenue, Callable 7/1/13 @ 102, 5.000%, 7/1/14 | 882,717 | ||||
| 1,320,000 | Richmond Metropolitan Authority, VA, Expressway Refunding Revenue (FGIC), 5.250%, 7/15/16 | 1,370,477 | ||||
| 2,000,000 | Roanoke Industrial Development Authority, VA, Carilion Health System Revenue, Series A2, Callable 11/1/08 @ 100 (FSA), 7.000%, 7/1/36* | 2,000,000 | ||||
| 1,000,000 | Spotsylvania County, VA, Public Improvements G.O., Callable 1/15/16 @ 100 (FSA), 5.000%, 1/15/17 | 1,052,820 | ||||
| 2,925,000 | Spotsylvania County, VA, Refunding G.O. (FSA), 5.500%, 7/15/12 | 3,162,715 | ||||
| 375,000 | Stafford County & Staunton Industrial Development Authority, VA, Virginia Municipal League Association Counties Program B Revenue (CIFG), OID, 4.250%, 8/1/15 | 364,335 | ||||
| 195,000 | Stafford County & Staunton Industrial Development Authority, VA, Virginia Municipal League Association Counties Program Revenue (XLCA), 4.000%, 8/1/15 | 191,207 | ||||
| 330,000 | Stafford County & Staunton Industrial Development Authority, VA, Virginia Municipal League Association Counties Program Revenue (XLCA), OID, 4.000%, 8/1/17 | 314,101 | ||||
Continued
73
BB&T Virginia Intermediate Tax-Free Fund
Schedule of Portfolio Investments — (continued)
September 30, 2008
| Principal Amount | Fair Value | |||||
| MUNICIPAL BONDS — (continued) | ||||||
Virginia — (continued) | ||||||
| $ | 600,000 | Stafford County & Staunton Industrial Development Authority, VA, Virginia Municipal League Association Counties Program Revenue (XLCA), OID, 4.000%, 8/1/18 | $ | 560,226 | ||
| 335,000 | Stafford County, VA, Economic Development Authority, Public Facilities Projects Revenue (Assured Guaranty), OID, 4.000%, 4/1/17 | 321,784 | ||||
| 745,000 | Stafford County, VA, Economic Development Authority, Public Facilities Projects Revenue (Assured Guaranty), OID, 4.250%, 4/1/18 | 717,055 | ||||
| 1,300,000 | Suffolk, VA, Refunding Public Improvements Refunding G.O., Series A (MBIA), 5.000%, 2/1/16 | 1,360,320 | ||||
| 2,445,000 | Suffolk, VA, Refunding Public Improvements Refunding G.O., Series A (MBIA), 5.000%, 2/1/17 | 2,540,086 | ||||
| 300,000 | Tobacco Settlement Financing Corp. Revenue, VA, Prerefunded 6/1/15 @ 100, OID, 5.625%, 6/1/37 | 326,040 | ||||
| 2,500,000 | Virginia Beach, VA, Public Improvements G.O., Prerefunded 3/1/10 @ 101 (State Aid Withholding), OID, 5.250%, 3/1/11 | 2,620,350 | ||||
| 1,610,000 | Virginia College Building Authority, 21st Century College & Equipment Program Revenue, Series B, Callable 2/1/17 @ 100, 5.000%, 2/1/18 | 1,670,439 | ||||
| 2,000,000 | Virginia College Building Authority, 21st Century College Program Refunding Revenue, Series B, 5.250%, 2/1/13 | 2,145,480 | ||||
| 1,000,000 | Virginia College Building Authority, Hampton University Project Revenue, 5.500%, 4/1/10 | 1,037,810 | ||||
| 830,000 | Virginia College Building Authority, Public Higher Education Financing Program Refunding Revenue, Series B (State Aid Withholding), 4.250%, 9/1/17 | 827,535 | ||||
| 1,000,000 | Virginia College Building Authority, Public Higher Education Financing Program Revenue, Series A, Callable 9/1/15 @ 100, 5.000%, 9/1/22 | 994,010 | ||||
| 280,000 | Virginia College Building Authority, Public Higher Education Financing Program Revenue, Series A, Callable 9/1/16 @ 100 (State Aid Withholding), OID, 3.500%, 9/1/25 | 212,766 | ||||
| 475,000 | Virginia College Building Authority, Public Higher Education Financing Program Revenue, Series A, Prerefunded 9/1/11 @ 100, 5.000%, 9/1/19 | 501,572 | ||||
| 1,525,000 | Virginia Commonwealth, Public Improvements G.O., Series B, 5.000%, 6/1/17 | 1,620,206 | ||||
| 1,370,000 | Virginia Commonwealth, Refunding G.O., Series B, 5.000%, 6/1/14 | 1,470,914 | ||||
| 2,240,000 | Virginia Public Building Authority, VA, Public Facilities Refunding Revenue, Series A, 5.000%, 8/1/11 | 2,358,720 | ||||
| 1,070,000 | Virginia Public Building Authority, VA, Virginia Public Facilities Building Revenue, Series A, Callable 8/1/17 @ 100 (MBIA), 5.000%, 8/1/18 | 1,112,147 | ||||
| 105,000 | Virginia Public School Authority, Refunding School Financing 1997 Revenue, Series D (State Aid Withholding), 5.250%, 2/1/12 | 111,810 | ||||
| 2,500,000 | Virginia Public School Authority, School Financing 1997 Resolution Revenue, Series B, Callable 8/1/17 @100 (MBIA), 5.000%, 8/1/26 | 2,425,200 | ||||
| 1,000,000 | Virginia Public School Authority, Unrefunded Balance Refunding School Financing Revenue, Series I, 5.250%, 8/1/10 | 1,045,470 | ||||
| 1,000,000 | Virginia Resources Authority, State Revolving Fund Refunding Revenue, 5.500%, 10/1/17 | 1,093,090 | ||||
| 805,000 | Virginia Resources Authority, State Revolving Fund Revenue, 5.250%, 10/1/15 | 874,633 | ||||
| 1,010,000 | Virginia State Resources Authority, Clean Water State Revolving Fund Revenue, Callable 10/1/17 @ 100, 4.750%, 10/1/24 | 961,035 | ||||
| 400,000 | Watkins Centre Community Development Authority, VA, Transit Improvements Revenue, Callable 3/1/15 @ 100, OID, 5.400%, 3/1/20 | 348,796 | ||||
| 1,000,000 | Western Virginia Regional Jail Authority, Aniticipation Notes Correctional Facility Improvements Revenue, Callable 12/1/08 @ 100, 4.125%, 12/1/09 | 1,001,930 | ||||
| 75,497,290 | ||||||
Total Municipal Bonds | 77,147,756 | |||||
| Shares | ||||||
| INVESTMENT COMPANY (2.0%) | ||||||
| 1,644,243 | BlackRock Virginia Municipal Money Market Portfolio, Institutional Class | 1,644,243 | ||||
Total Investment Company | 1,644,243 | |||||
|
| Total Investments — 96.9% (Cost $79,028,249) | 78,791,999 | ||||
| Net Other Assets (Liabilities) — 3.1% | 2,522,228 | |||||
| NET ASSETS — 100.0% | $ | 81,314,227 | ||||
See footnote legend to Schedules of Portfolio Investments.
See accompanying notes to the financial statements.
74
BB&T West Virginia Intermediate Tax-Free Fund
Schedule of Portfolio Investments
September 30, 2008
| Principal Amount | Fair Value | |||||
| MUNICIPAL BONDS (97.0%) | ||||||
West Virginia (97.0%) | ||||||
| $ | 1,250,000 | Berkeley County Board of Education, WV, School Improvements G.O., Callable 5/1/12 @ 101 (FGIC), 5.000%, 5/1/16 | $ | 1,284,400 | ||
| 690,000 | Berkeley County, WV, Public Service Sewer District Revenue, Series A, Callable 10/1/13 @ 100, OID, 4.600%, 10/1/15 | 655,845 | ||||
| 720,000 | Berkeley County, WV, Public Service Sewer District Revenue, Series A, Callable 10/1/13 @ 100, OID, 4.700%, 10/1/16 | 679,104 | ||||
| 670,000 | Braxton County, WV, Board of Education Public Schools G.O., Callable 5/1/18 @ 100 (FSA), 5.000%, 5/1/23 | 651,716 | ||||
| 500,000 | Brooke, Pleasants, Tyler & Wetzel Counties, WV, Housing Revenue, 7.400%, 8/15/10 | 543,055 | ||||
| 1,800,000 | Cabell County, WV, Board of Education School Improvements G.O. (MBIA), 5.000%, 5/1/16 | 1,884,312 | ||||
| 465,000 | Cabell, Putnam & Wayne Counties, WV, State Housing Revenue (FGIC), 7.375%, 4/1/11 | 511,337 | ||||
| 1,030,000 | Charleston, WV, Urban Renewal Authority, Public Improvements Lease Revenue, Callable 12/15/09 @ 103 (FSA), 5.250%, 12/15/18 | 1,061,116 | ||||
| 1,860,000 | Clarksburg, WV, Water Refunding Revenue, Callable 9/1/12 @ 101 (FGIC), 5.250%, 9/1/19 | 1,884,440 | ||||
| 1,000,000 | Fairmont State College, WV, University & College Improvements Revenue, Series A, Callable 6/1/13 @ 100 (FGIC), 5.250%, 6/1/22 | 955,760 | ||||
| 665,000 | Fairmont State College, WV, University & College Improvements Revenue, Series B, Callable 6/1/13 @ 100 (FGIC), 5.000%, 6/1/32 | 592,222 | ||||
| 680,000 | Fairmont, WV, Waterworks Refunding Revenue, Callable 11/6/08 @ 101 (MBIA), OID, 5.375%, 7/1/13 | 687,827 | ||||
| 1,455,000 | Harrison County, WV, County Commission Tax Allocation Refunding Revenue, Charles Pointe Project No. 2, Series A, Callable 6/1/18 @ 100, 6.500%, 6/1/23 | 1,371,628 | ||||
| 545,000 | Harrison County, WV, County Commission Tax Allocation Refunding Revenue, Charles Pointe Project No. 2, Series B, OID, 5.500%, 6/1/13 | 531,190 | ||||
| 235,000 | Huntington, WV, Sewer Refunding Revenue, Series A, Callable 11/1/11 @ 100, 4.600%, 11/1/12 | 236,064 | ||||
| 335,000 | Huntington, WV, Sewer Refunding Revenue, Series A, Callable 11/1/11 @ 100, 4.600%, 11/1/13 | 334,538 | ||||
| 275,000 | Huntington, WV, Sewer Refunding Revenue, Series A, Callable 11/1/11 @ 100, 4.700%, 11/1/14 | 274,098 | ||||
| 690,000 | Logan County, WV, 1st Mortgage-Logan County Health Revenue, 8.000%, 12/1/16 | 856,069 | ||||
| 1,395,000 | Ohio County, WV, County Commission Sewage System, Fort Henry Centre Tax Allocation Revenue, District A, 5.350%, 6/1/17 | 1,331,555 | ||||
| 685,000 | Ohio County, WV, Board of Education, Refunding G.O., Callable 12/1/08 @ 101.5 (MBIA-IBC), OID, 5.000%, 6/1/13 | 699,529 | ||||
| 1,115,000 | Ohio County, WV, County Commission Sewage System, Fort Henry Centre Tax Allocation Revenue, District A, Callable 6/1/17 @ 100, 5.625%, 6/1/22 | 1,022,667 | ||||
| 1,190,000 | Parkersburg, WV, Combined Waterworks & Sewer Systems Refunding Revenue, Series C (FGIC), 5.000%, 9/1/14 | 1,222,261 | ||||
| 1,330,000 | Parkersburg, WV, Combined Waterworks & Sewer Systems Refunding Revenue, Series C (FGIC), 5.000%, 9/1/15 | 1,360,617 | ||||
| 1,100,000 | Pleasants County, WV, Industrial Development, Monongahela Power Co. Refunding Revenue, Series C, Callable 11/6/08 @ 100 (AMBAC), 6.150%, 5/1/15 | 1,102,486 | ||||
| 1,000,000 | Shepherd University Board of Governors, WV, Shepherd University Wellness Center Project Revenue, Callable 12/1/17 @100 (MBIA), 5.000%, 6/1/22 | 952,320 | ||||
| 565,000 | West Virginia Commissioner of Highways, Surface Transportation Improvements Revenue, Series A (FSA), 4.500%, 9/1/09 | 576,080 | ||||
| 1,360,000 | West Virginia Commissioner of Highways, Surface Transportation Improvements Revenue, Series A (FSA), 5.000%, 9/1/14 | 1,437,330 | ||||
| 550,000 | West Virginia Economic Development Authority, Berkeley Co. Development Authority Refunding Revenue, OID, 4.700%, 2/1/17 | 508,354 | ||||
| 2,000,000 | West Virginia Economic Development Authority, Correctional Juvenile & Public Lease Revenue, Series A (MBIA), 5.500%, 6/1/12 | 2,124,620 | ||||
| 1,000,000 | West Virginia Economic Development Authority, Correctional Juvenile & Public Lease Revenue, Series A, Callable 6/1/12 @ 101 (MBIA), 5.500%, 6/1/15 | 1,050,840 | ||||
| 1,000,000 | West Virginia Economic Development Authority, Correctional Juvenile & Public Lease Revenue, Series A, Callable 6/1/12 @ 101 (MBIA), 5.500%, 6/1/18 | 1,031,010 | ||||
| 1,040,000 | West Virginia Economic Development Authority, Correctional Juvenile & Public Lease Revenue, Series A, Callable 6/1/12 @ 101 (MBIA), 5.500%, 6/1/19 | 1,066,125 | ||||
| 450,000 | West Virginia Economic Development Authority, Department of Environmental Protection Lease Revenue, 4.750%, 11/1/11 | 469,386 | ||||
| 240,000 | West Virginia Economic Development Authority, State Energy Savings Project Lease Revenue, 4.250%, 6/1/12 | 245,002 | ||||
| 340,000 | West Virginia Economic Development Authority, State Energy Savings Project Lease Revenue, Callable 6/1/15 @ 100, 4.750%, 6/1/21 | 316,516 | ||||
| 1,250,000 | West Virginia Economic Development Authority, State Office Building Lease Revenue, Series A, Callable 10/1/11 @ 101, 5.000%, 10/1/15 | 1,291,700 | ||||
Continued
75
BB&T West Virginia Intermediate Tax-Free Fund
Schedule of Portfolio Investments — (continued)
September 30, 2008
| Principal Amount | Fair Value | |||||
| MUNICIPAL BONDS — (continued) | ||||||
West Virginia — (continued) | ||||||
| $ | 820,000 | West Virginia Higher Education Policy Commission, Higher Education Facilities Refunding Revenue, Series B (FGIC), 5.000%, 4/1/14 | $ | 857,261 | ||
| 2,230,000 | West Virginia Higher Education Policy Commission, Higher Education Facilities Refunding Revenue, Series B, Callable 4/1/14 @ 100 (FGIC), 5.000%, 4/1/23 | 2,145,416 | ||||
| 330,000 | West Virginia Housing Development Fund, Marion Unity Apartments Project Refunding Revenue, Series A, Callable 7/1/11 @ 100, 5.400%, 1/1/16 | 313,622 | ||||
| 2,000,000 | West Virginia School Building Authority Excess, WV, Lottery Revenue, Callable 7/1/18 @ 100, OID, 5.000%, 7/1/27 | 1,888,200 | ||||
| 1,500,000 | West Virginia School Building Authority, Capital Improvements Refunding Revenue, Series A (FGIC), 5.000%, 7/1/15 | 1,566,690 | ||||
| 2,100,000 | West Virginia School Building Authority, Capital Improvements Refunding Revenue, Series A (FGIC), 5.000%, 7/1/16 | 2,181,165 | ||||
| 1,960,000 | West Virginia School Building Authority, Capital Improvements Refunding Revenue, Series A, Callable 7/1/17 @ 100 (FGIC), 5.000%, 7/1/18 | 1,991,811 | ||||
| 1,615,000 | West Virginia School Building Authority, Capital Improvements Refunding Revenue, Series A, Callable 7/1/17 @ 100 (FGIC), 5.000%, 7/1/19 | 1,619,425 | ||||
| 1,000,000 | West Virginia School Building Authority, Capital Improvements Revenue (MBIA), 5.000%, 1/1/09 | 1,006,050 | ||||
| 275,000 | West Virginia School Building Authority, Capital Improvements Revenue (MBIA), 5.250%, 1/1/14 | 292,061 | ||||
| 1,020,000 | West Virginia School Building Authority, Capital Improvements Revenue (MBIA), 5.250%, 7/1/14 | 1,086,494 | ||||
| 1,300,000 | West Virginia School Building Authority, WV, Excess Lottery Revenue, 5.000%, 7/1/18 | 1,338,350 | ||||
| 1,395,000 | West Virginia State Building Commission, Regional Jail Refunding Revenue, Series A (AMBAC), 5.250%, 7/1/10 | 1,441,997 | ||||
| 170,000 | West Virginia State Hospital Finance Authority, Camden Clark Memorial Hospital Revenue, Series A, Callable 2/15/14 @ 100 (FSA), 5.250%, 2/15/18 | 172,091 | ||||
| 640,000 | West Virginia State Hospital Finance Authority, Charleston Area Medical Center, Inc. Revenue, Series A, OID, 6.500%, 9/1/16 | 726,266 | ||||
| 450,000 | West Virginia State Hospital Finance Authority, Charleston Medical Center Revenue, Prerefunded 9/1/10 @ 101, OID, 6.750%, 9/1/30 | 488,272 | ||||
| 800,000 | West Virginia State Hospital Finance Authority, Department of Health & Human Resource Refunding Revenue, Callable 11/6/08 @ 100 (FSA), 5.000%, 8/1/09 | 801,544 | ||||
| 1,200,000 | West Virginia State Hospital Finance Authority, Linked Bears & Bulls Refunding Revenue, Callable 11/6/08 @ 100 (MBIA), 6.100%, 1/1/18 | 1,219,224 | ||||
| 1,000,000 | West Virginia State Hospital Finance Authority, West Virginia United Health System Refunding Revenue, Series E, Callable 12/1/18 @ 100, OID, 5.375%, 6/1/28 | 901,630 | ||||
| 1,000,000 | West Virginia State Parkways Economic Development & Tourism Authority, Refunding Revenue (FGIC), 5.000%, 5/15/10 | 1,030,860 | ||||
| 1,000,000 | West Virginia State Parkways Economic Development & Tourism Authority, Refunding Revenue (FGIC), 5.250%, 5/15/12 | 1,053,060 | ||||
| 700,000 | West Virginia State Parkways Economic Development & Tourism Authority, Refunding Revenue (FGIC), 5.250%, 5/15/17 | 735,819 | ||||
| 360,000 | West Virginia University, Projects Refunding Revenue, Series B, Callable 10/1/14 @ 100 (FGIC), 5.000%, 10/1/21 | 352,591 | ||||
| 1,485,000 | West Virginia University, Projects Revenue, Series A (MBIA), 5.500%, 4/1/11 | 1,562,532 | ||||
| 1,500,000 | West Virginia University, Projects Revenue, Series A (MBIA), 5.250%, 4/1/28 | 1,411,065 | ||||
| 955,000 | West Virginia Water Development Authority, Infrastructure Jobs Refunding Revenue, Series A, Callable 10/1/16 @ 100 (FSA), 5.000%, 10/1/26 | 912,426 | ||||
| 900,000 | West Virginia Water Development Authority, Infrastructure Jobs Revenue, Series A, Callable 10/1/16 @ 100 (FSA), 4.750%, 10/1/23 | 842,130 | ||||
| 1,000,000 | West Virginia Water Development Authority, Loan Program II Revenue, Series A, Prerefunded 11/1/09 @ 102 (AMBAC), 5.500%, 11/1/18 | 1,053,240 | ||||
| 500,000 | West Virginia, State Infrastructure Refunding G.O. (FGIC), 5.000%, 11/1/10 | 521,260 | ||||
| 1,040,000 | West Virginia, State Road Highway Improvements G.O. (FSA), 5.500%, 6/1/10 | 1,087,632 | ||||
| 2,380,000 | West Virginia, State Road Highway Improvements G.O. (FSA), 5.500%, 6/1/11 | 2,532,249 | ||||
| 300,000 | West Virginia, State Road Highway Improvements G.O., Prerefunded 6/1/09 @ 101, 5.750%, 6/1/13 | 309,840 | ||||
| 280,000 | West Virginia, State Road Refunding G.O. (FGIC), 5.000%, 6/1/12 | 294,974 | ||||
| 2,090,000 | West Virginia, State Road Refunding G.O. (FGIC), 5.000%, 6/1/15 | 2,195,817 | ||||
Total Municipal Bonds | 70,736,183 | |||||
Continued
76
BB&T West Virginia Intermediate Tax-Free Fund
Schedule of Portfolio Investments — (continued)
September 30, 2008
| Shares | Fair Value | ||||
| INVESTMENT COMPANY (2.1%) | |||||
| 1,543,752 | Federated Tax-Free Obligations Fund, Institutional Service Class | $ | 1,543,752 | ||
Total Investment Company | 1,543,752 | ||||
| Total Investments — 99.1% (Cost $73,692,220) | 72,279,935 | ||||
| Net Other Assets (Liabilities) — 0.9% | 686,773 | ||||
| NET ASSETS — 100.0% | $ | 72,966,708 | |||
See footnote legend to Schedules of Portfolio Investments.
See accompanying notes to the financial statements.
77
BB&T National Tax-Free Money Market Fund
Schedule of Portfolio Investments
September 30, 2008
| Principal Amount | Amortized Cost | |||||
| MUNICIPAL BONDS (94.3%) | ||||||
Alaska (1.5%) | ||||||
| $ | 2,200,000 | Valdez, AK, Marine Terminal Refunding Revenue, Exxon Pipeline Co. Project A, 3.900%, 10/1/08* | $ | 2,200,000 | ||
Arizona (9.0%) | ||||||
| 3,225,000 | Arizona Health Facilities Authority Revenue, La Loma Village, AZ (Sovereign Bank FSB), 8.010%, 10/2/08* | 3,225,000 | ||||
| 1,700,000 | Arizona State Board of Regents, AZ, Arizona State University System Refunding Revenue, Series A (Lloyds TSB Bank Plc), 7.950%, 10/1/08* | 1,700,000 | ||||
| 3,000,000 | Arizona State Board of Regents, AZ, Arizona State University System Refunding Revenue, Series B (Lloyds TSB Bank Plc), 7.870%, 10/1/08* | 3,000,000 | ||||
| 3,335,000 | Phoenix Industrial Development Authority Revenue, AZ, South Western College Phoenix (Comercia Bank), 8.300%, 10/2/08* | 3,335,000 | ||||
| 1,935,000 | Salt River Project Agricultural Improvements & Power District Electric System, AZ, Puttable Revenue, Series 2045, 4.950%, 10/2/08*(d) | 1,935,000 | ||||
| 400,000 | Yavapai County, AZ, Industrial Development Authority Hospital Facilities Revenue, Yavapai Regional Medical Center, Series B (FSA), 8.400%, 10/2/08* | 400,000 | ||||
| 13,595,000 | ||||||
Colorado (1.1%) | ||||||
| 1,600,000 | Thornton, CO, Kroger Co. Industrial Development Refunding Revenue (U.S. Bank N.A.), 8.060%, 10/2/08* | 1,600,000 | ||||
Florida (8.6%) | ||||||
| 4,385,000 | Miami, FL, Health Facilities Authority Refunding Revenue, Mercy Hospital Project (NationsBank N.A.), 7.920%, 10/1/08* | 4,385,000 | ||||
| 1,500,000 | Orange County, FL, Industrial Development Authority Revenue, Catholic Diocese Project (Suntrust Bank), 7.900%, 10/1/08* | 1,500,000 | ||||
| 4,125,000 | Polk County, FL, Industrial Development Authority Refunding Revenue, Winter Haven Hospital Project, Series A (Suntrust Bank), 5.500%, 10/1/08* | 4,125,000 | ||||
| 3,070,000 | Volusia County, FL, Educational Facility Authority Revenue, Bethune Cookman College Project (Suntrust Bank), 7.900%, 10/1/08* | 3,070,000 | ||||
| 13,080,000 | ||||||
Georgia (7.3%) | ||||||
| 800,000 | Dougherty County, GA, Development Authority Revenue, Deerfield-Windsor School Project (Regions Bank), 8.010%, 10/2/08* | 800,000 | ||||
| 1,700,000 | Fulton County, GA, Development Authority Refunding Revenue, 5.000%, 10/15/08* | 1,700,000 | ||||
| 5,000,000 | Fulton County, GA, School District Construction Sale Tax G.O. Limited Notes, Cash Flow Management, 3.000%, 12/31/08 | 5,009,146 | ||||
| 525,000 | Gainesville Redevelopment Authority Revenue, Brenau University Inc., Project (Suntrust Bank, Atlanta), 7.900%, 10/1/08* | 525,000 | ||||
| 3,000,000 | Newnan, GA, Housing Authority Revenue, Summit Point Apartments Project (Columbus Bank & Trust), 8.060%, 10/2/08* | 3,000,000 | ||||
| 11,034,146 | ||||||
Illinois (14.7%) | ||||||
| 815,248 | ABN AMRO Chicago Corp. Leasetops Master Trust 1, Revenue, Series 1997-1, 7.330%, 10/2/08*(d) | 815,248 | ||||
| 6,150,000 | Chicago Board of Education, IL, School Improvements G.O., Series B (FSA), 7.250%, 10/2/08* | 6,150,000 | ||||
| 5,000,000 | Chicago School Finance Authority, IL, School Financing Refunding G.O., Series B (FSA), 5.000%, 6/1/09 | 5,101,356 | ||||
| 1,075,000 | Cook County, IL, Capital Improvements G.O., Series E, 7.750%, 10/2/08* | 1,075,000 | ||||
| 5,000,000 | Illinois Financial Authority Revenue, Bradley University, Series A (Northern Trust Company), 10.000%, 10/2/08* | 5,000,000 | ||||
| 4,000,000 | Illinois Health Facilities Authority Refunding Revenue, Rehabilitation Institute Chicago Project (Bank of America N.A.), 7.980%, 10/2/08* | 4,000,000 | ||||
| 141,000 | Western Springs, IL, Timber Trails Project Special Assessment (LaSalle Bank N.A.), 7.520%, 10/1/08* | 141,000 | ||||
| 22,282,604 | ||||||
Maine (3.3%) | ||||||
| 5,000,000 | Finance Authority of Maine Revenue, Mt. Desert (Citizens Bank NH), 8.300%, 10/2/08* | 5,000,000 | ||||
Massachusetts (1.3%) | ||||||
| 2,000,000 | Massachusetts Health & Educational Facilities Authority Revenue, Cape Cod Healthcare, Series D (Assured Guaranty), 8.100%, 10/2/08* | 2,000,000 | ||||
Mississippi (2.3%) | ||||||
| 3,500,000 | Mississippi Business Finance Corp., Mississippi Revenue Gulfport Promenade Project (Regions Bank), 8.210%, 10/2/08* | 3,500,000 | ||||
Missouri (2.0%) | ||||||
| 3,000,000 | Missouri State Health & Educational Facilities Authority Revenue, MO, Dialsis Clinic, Inc. Project (Suntrust Bank), 7.950%, 10/1/08* | 3,000,000 | ||||
New Hampshire (1.1%) | ||||||
| 1,700,000 | New Hampshire Health & Educational Facilities Authority, Dartmouth College Refunding Revenue, Series A, 4.350%, 10/1/08* | 1,700,000 | ||||
New Mexico (3.2%) | ||||||
| 4,800,000 | New Mexico Hospital Equipment Loan Council, NM, Presbyterian Healthcare Refunding Revenue, Series B (FSA), 8.300%, 10/1/08* | 4,800,000 | ||||
Ohio (11.0%) | ||||||
| 2,000,000 | Cleveland City, OH, Airport System Refunding Revenue, Series D (U.S. Bank N.A.), 8.000%, 10/2/08* | 2,000,000 | ||||
Continued
78
BB&T National Tax-Free Money Market Fund
Schedule of Portfolio Investments — (continued)
September 30, 2008
| Principal Amount | Amortized Cost | |||||
| MUNICIPAL BONDS — (continued) | ||||||
Ohio — (continued) | ||||||
| $ | 1,092,599 | Columbus, OH, City School District, G.O. Refunding Bond Anticipation Notes, School Facilities Construction, 3.750%, 12/11/08 | $ | 1,093,831 | ||
| 3,000,000 | Lancaster Port Authority, OH, Ohio Gas Revenue, 8.000%, 10/2/08* | 3,000,000 | ||||
| 2,500,000 | Lima, OH, G.O. Bond Anticipation Notes, Water Systems Capital Facilities Cash Flow Management, 2.500%, 5/28/09 | 2,506,402 | ||||
| 1,525,000 | Montgomery County, OH, Industrial Development Refunding Revenue (U.S. Bank N.A.), 8.060%, 10/2/08* | 1,525,000 | ||||
| 3,000,000 | Port of Greater Cincinnati Development Authority Revenue, OH, Ohio Special Obligation Development, Sycamore Township Kenwood, Series A (Lasalle National Bank N.A.), 8.000%, 10/2/08* | 3,000,000 | ||||
| 1,575,000 | Warrensville Heights, OH, G.O. Bond Anticipation Notes Cash Flow Management, Various Purposes Improvements - 2, 2.400%, 5/29/09 | 1,577,534 | ||||
| 2,000,000 | Westlake, OH, Lutheran Home Project Revenue (RBS Citizens NA), 8.000%, 10/2/08* | 2,000,000 | ||||
| 16,702,767 | ||||||
Oregon (1.1%) | ||||||
| 1,700,000 | Oregon State, G.O., Series 73 H, 7.800%, 10/1/08* | 1,700,000 | ||||
Pennsylvania (1.0%) | ||||||
| 475,000 | Allegheny County, PA, Hospital Development Authority Revenue, Presbyterian University Hospital, Series B1 (Bank One N.A.), 7.880%, 10/2/08* | 475,000 | ||||
| 1,100,000 | Bethlehem Area School District, PA, G.O. (FSA, State Aid Withholding), 8.500%, 10/2/08* | 1,100,000 | ||||
| 1,575,000 | ||||||
Tennessee (6.0%) | ||||||
| 2,100,000 | Hendersonville Industrial Development Board, TN, Educational Facilities Revenue, Pope John Paul II High School (Suntrust Bank N.A.), 7.900%, 10/1/08* | 2,100,000 | ||||
| 3,830,000 | Jackson Energy Authority, Natual Gas System Revenue (FSA), 8.250%, 10/1/08* | 3,830,000 | ||||
| 2,100,000 | Jackson Energy Authority, Wastewater System Revenue (FSA), 7.250%, 10/2/08* | 2,100,000 | ||||
| 1,085,000 | Metropolitan Government Nashville & Davidson County, TN, Industrial Development Board Refunding Revenue, David Lipscomb University Project (Suntrust Bank), 7.900%, 10/1/08* | 1,085,000 | ||||
| 9,115,000 | ||||||
Texas (9.3%) | ||||||
| 1,350,000 | Crawford Education Facilities Corp., TX, Refunding Revenue, University Parking System Project, Series A, (BNP Paribas), 8.050%, 10/2/08* | 1,350,000 | ||||
| 3,545,000 | Houston Higher Education Finance Corp., TX, University & College Improvements Revenue, Tierwester Oaks, Series A (Bank of New York), 1.890%, 10/1/08* | 3,545,000 | ||||
| 1,100,000 | Kendall County, TX, Health Facility Development Corp., Health Care Revenue, Morningside Ministries, Series A (Allied Irish Bank PLC), 7.950%, 10/2/08* | 1,100,000 | ||||
| 2,500,000 | Northside Independent School District, TX, Refunding G.O., Series A, Callable 2/1/09 @ 100 (PSF-GTD), OID, 2.000%, 8/1/09* | 2,500,000 | ||||
| 2,500,000 | Texas Municipal Gas Acquisition & Supply Corp. II, Natural Gas Utility Improvements Revenue, ROCS-10014, 5.650%, 10/2/08*(d) | 2,500,000 | ||||
| 3,000,000 | Texas State, TX, Tax & Revenue Anticipation Notes Cash Flow Management, 3.000%, 8/28/09 | 3,036,945 | ||||
| 14,031,945 | ||||||
Utah (1.7%) | ||||||
| 2,500,000 | Riverton, UT, Hospital Puttable Revenue, Series 1762, 4.930%, 10/2/08*(d) | 2,500,000 | ||||
Washington (5.9%) | ||||||
| 3,000,000 | King County, WA, Sewer Improvements Revenue, Series B (Helaba), 7.750%, 10/1/08* | 3,000,000 | ||||
| 5,995,000 | Washington Economic Development Finance Authority, WA, Northwest Center Project Revenue, Series A (Keybank N.A.), 10.000%, 10/2/08* | 5,995,000 | ||||
| 8,995,000 | ||||||
Wisconsin (2.9%) | ||||||
| 3,000,000 | Appleton Redevelopment Authority, WI, Fox Cities Performing Arts Center Revenue, Series B (Bank One Wisconsin), 8.950%, 10/1/08* | 3,000,000 | ||||
| 1,300,000 | Menomonie Wisconsin Area School District, WI, Tax & Revenue Anticipation Promissory Notes Cash Flow Management, 2.400%, 9/1/09 | 1,303,035 | ||||
| 4,303,035 | ||||||
Total Municipal Bonds | 142,714,497 | |||||
| Shares | ||||||
| INVESTMENT COMPANY (0.7%) | ||||||
| 1,094,792 | SEI Institutional Tax Free Fund | 1,094,792 | ||||
Total Investment Company | 1,094,792 | |||||
|
| Total Investments — 95.0% (Cost $143,809,289) | 143,809,289 | ||||
| Net Other Assets (Liabilities) — 5.0% | 7,634,894 | |||||
| NET ASSETS — 100.0% | $ | 151,444,183 | ||||
See footnote legend to Schedules of Portfolio Investments.
See accompanying notes to the financial statements.
79
Schedule of Portfolio Investments
September 30, 2008
| Principal Amount | Amortized Cost | |||||
| ASSET BACKED SECURITIES (1.6%) | ||||||
| $ | 1,527,110 | Cal Securizitation Trust, Series 2008-1, Class A1, 2.994%, 4/15/09(e) | $ | 1,527,109 | ||
| 234,038 | Capital Auto Receivables Asset Trust, Series 2007-SN2, Class A1, 5.105%, 12/15/08(d) | 234,038 | ||||
| 5,587,316 | Carl Note Repackaging Trust, Series No. 10, 3.465%, 7/15/09(e) | 5,587,316 | ||||
| 2,779,860 | Carmax Auto Owner Trust, Series 2008-2, Class A1, 2.922%, 7/15/09 | 2,779,860 | ||||
| 275,688 | Daimler Chrysler Auto Trust, Series 2008-A, Class A1, 3.152%, 3/9/09(d) | 275,688 | ||||
| 1,310,297 | Fifth Third Auto Trust, Series 2008-1, Class A1, 2.730%, 4/15/09 | 1,310,297 | ||||
| 2,198,710 | Ford Credit Auto Owner Trust, Series 2008-B, Class A1, 2.766%, 5/15/09 | 2,198,710 | ||||
| 13,183,379 | Ford Credit Auto Owner Trust, Series 2008-C, Class A1, 2.776%, 6/15/09(d) | 13,183,379 | ||||
| 1,241,917 | Huntington Auto Trust, Series 2008-1A, Class A1, 2.821%, 6/15/09(d) | 1,241,917 | ||||
Total Asset Backed Securities | 28,338,314 | |||||
| CERTIFICATES OF DEPOSIT (20.6%) | ||||||
Banks (20.6%) | ||||||
| 25,000,000 | Banco Santander, New York, 3.100%, 1/9/09 | 25,000,000 | ||||
| 20,000,000 | Bank of Ireland, 3.170%, 2/17/09 | 20,000,000 | ||||
| 5,000,000 | Bank of Montreal, Chicago, 3.650%, 6/15/09 | 5,000,000 | ||||
| 5,000,000 | Barclays Bank PLC, 3.060%, 2/23/09 | 5,000,000 | ||||
| 15,000,000 | Barclays Bank PLC, 3.120%, 3/12/09 | 15,000,000 | ||||
| 8,000,000 | Barclays Bank PLC, 3.700%, 6/12/09 | 8,000,000 | ||||
| 20,000,000 | Calyon, New York, 3.130%, 1/12/09 | 20,000,000 | ||||
| 25,000,000 | Canadian Imperial Bank of Commerce, 3.150%, 2/17/09 | 25,000,000 | ||||
| 20,000,000 | Compass Bank, 2.850%, 10/3/08 | 20,000,000 | ||||
| 10,000,000 | Compass Bank, 2.760%, 11/14/08 | 10,000,000 | ||||
| 5,000,000 | Credit Suisse, 3.090%, 1/20/09 | 5,000,000 | ||||
| 25,000,000 | Depfa Bank PLC, 2.900%, 11/28/08 | 25,000,000 | ||||
| 5,000,000 | Depfa Bank PLC, 2.920%, 12/4/08 | 5,000,000 | ||||
| 20,000,000 | Fifth Third Bank, 3.200%, 2/23/09 | 20,000,000 | ||||
| 25,000,000 | Huntington National Bank, 2.850%, 11/3/08 | 25,000,000 | ||||
| 20,000,000 | Mizuho Corp. Bank, 2.840%, 11/24/08 | 20,000,000 | ||||
| 20,000,000 | Natixis, NY Branch, 2.940%, 11/21/08 | 20,000,000 | ||||
| 20,000,000 | Suntrust Bank, 3.150%, 2/23/09 | 20,000,000 | ||||
| 20,000,000 | UBS AG, New York, 2.870%, 11/5/08 | 20,000,000 | ||||
| 6,000,000 | UBS AG, Stamford Branch, 3.780%, 10/15/08 | 6,000,000 | ||||
| 20,000,000 | Wilmington Trust Co., 2.880%, 10/14/08 | 20,000,000 | ||||
| 20,000,000 | Wilmington Trust Co., 2.900%, 11/4/08 | 20,000,000 | ||||
| 359,000,000 | ||||||
Total Certificates of Deposit | 359,000,000 | |||||
| COMMERCIAL PAPER** (45.8%) | ||||||
Banking (2.6%) | ||||||
| 25,000,000 | Allied Irish Banks, 2.877%, 11/28/08(d) | 24,886,014 | ||||
| 20,000,000 | Australia & New Zealand Banking, 3.213%, 12/5/08***(d) | 20,000,000 | ||||
| 44,886,014 | ||||||
Financial Services (41.2%) | ||||||
| 60,000,000 | Alpine Securitization Corp., 6.608%, 10/1/08(d) | 60,000,000 | ||||
| 5,000,000 | Alpine Securitization Corp., 2.846%, 10/2/08(d) | 4,999,611 | ||||
| 20,000,000 | Alpine Securitization Corp., 2.582%, 10/24/08(d) | 19,967,544 | ||||
| 40,000,000 | Amsterdam Funding Corp., 2.999%, 1/9/09(d) | 39,672,222 | ||||
| 8,000,000 | Barton Capital LLC, 2.846%, 10/3/08(d) | 7,998,756 | ||||
| 25,000,000 | Barton Capital LLC, 2.806%, 10/7/08(d) | 24,988,500 | ||||
| 3,000,000 | Barton Capital LLC, 2.816%, 11/3/08(d) | 2,992,382 | ||||
| 10,000,000 | Barton Capital LLC, 2.846%, 11/3/08(d) | 9,974,333 | ||||
| 25,000,000 | Citigroup Funding Inc., 2.958%, 12/11/08 | 24,856,521 | ||||
| 20,000,000 | Dexia Delaware LLC, 2.869%, 11/17/08 | 19,926,106 | ||||
| 3,225,000 | Diageo Capital PLC, 3.060%, 10/23/08(d) | 3,219,068 | ||||
| 1,000,000 | Diageo Capital PLC, 3.080%, 10/27/08(d) | 997,812 | ||||
| 2,165,000 | Diageo Capital PLC, 3.161%, 12/11/08(d) | 2,151,721 | ||||
| 6,600,000 | Diageo Capital PLC, 3.253%, 12/15/08(d) | 6,556,000 | ||||
| 25,000,000 | Drac LLC, 2.897%, 10/9/08 | 24,984,167 | ||||
| 25,000,000 | Enterprise Funding LLC, 2.797%, 11/18/08(d) | 24,907,333 | ||||
| 12,000,000 | Fairway Finance Co. LLC, 2.849%, 10/7/08(d) | 11,994,380 | ||||
| 75,000,000 | Fcar Owner Trust I, 7.116%, 10/1/08 | 75,000,000 | ||||
| 10,000,000 | Fcar Owner Trust I, 3.366%, 12/15/08 | 9,930,833 | ||||
| 25,000,000 | Greenwich Capital Holdings, 3.112%, 1/22/09 | 24,758,306 | ||||
| 25,000,000 | Greenwich Capital Holdings, 3.151%, 2/20/09 | 24,694,306 | ||||
| 1,000,000 | Heinz (H.J.) Finance Co., 3.070%, 11/14/08(d) | 996,309 | ||||
| 12,000,000 | KBC Financial Products International, Ltd., 3.151%, 3/2/09(d) | 11,842,933 | ||||
| 7,500,000 | Nissan Motor Acceptance Corp., 3.019%, 10/6/08(d) | 7,496,906 | ||||
| 85,000,000 | Salisbury Receivables Co. LLC, 6.100%, 10/1/08(d) | 85,000,000 | ||||
| 10,000,000 | Sheffield Receivables Corp., 2.795%, 10/8/08(d) | 9,994,653 | ||||
| 10,000,000 | Sheffield Receivables Corp., 2.392%, 10/14/08(d) | 9,990,069 | ||||
| 25,000,000 | Societe Generale North America, Inc., 2.872%, 12/1/08 | 24,880,330 | ||||
| 4,000,000 | Textron Financial Corp., 2.897%, 10/6/08 | 3,998,417 | ||||
| 11,000,000 | Textron Financial Corp., 2.938%, 11/17/08 | 10,958,496 | ||||
| 20,000,000 | Tulip Funding Corp., 2.612%, 10/14/08(d) | 19,981,439 | ||||
| 25,000,000 | Tulip Funding Corp., 2.856%, 12/1/08(d) | 24,880,965 | ||||
| 10,000,000 | Versailles CDS, LLC, 3.100%, 11/4/08(d) | 9,971,194 | ||||
| 8,200,000 | Volkswagen of America, 2.999%, 10/16/08(d) | 8,189,921 | ||||
| 3,000,000 | Volkswagen of America, 3.100%, 12/3/08(d) | 2,983,988 | ||||
| 6,000,000 | Volkswagen of America, 3.121%, 12/5/08(d) | 5,966,742 | ||||
| 20,000,000 | Yorktown Capital LLC, 2.816%, 10/14/08(d) | 19,979,994 | ||||
| 15,000,000 | Yorktown Capital LLC, 2.785%, 10/22/08(d) | 14,976,025 | ||||
| 20,000,000 | Yorktown Capital LLC, 2.755%, 12/12/08(d) | 19,891,600 | ||||
| 716,549,882 | ||||||
Information Technology (1.0%) | ||||||
| 7,000,000 | ITT Corp., 3.151%, 10/20/08(d) | 6,988,547 | ||||
| 200,000 | ITT Corp., 3.151%, 11/5/08(d) | 199,397 | ||||
| 5,000,000 | ITT Corp., 3.304%, 11/13/08(d) | 4,980,590 | ||||
| 2,000,000 | ITT Corp., 3.202%, 11/26/08(d) | 1,990,200 | ||||
| 3,500,000 | ITT Corp., 3.304%, 12/2/08(d) | 3,480,410 | ||||
| 17,639,144 | ||||||
Retail (1.0%) | ||||||
| 2,500,000 | Gannett Co., Inc., 3.558%, 10/28/08(d) | 2,493,438 | ||||
Continued
80
BB&T Prime Money Market Fund
Schedule of Portfolio Investments — (continued)
September 30, 2008
| Principal Amount | Amortized Cost | |||||
| COMMERCIAL PAPER** — (continued) | ||||||
Retail — (continued) | ||||||
| $ | 14,700,000 | Gannett Co., Inc., 3.578%, 10/28/08(d) | $ | 14,661,192 | ||
| 17,154,630 | ||||||
Total Commercial Paper | 796,229,670 | |||||
| VARIABLE RATE NOTES* (15.6%) | ||||||
Banking (11.9%) | ||||||
| 1,670,000 | Anchor Holdings LLC, Series 2000 (U.S. Bank, N.A.), 8.000%, 10/2/08 | 1,670,000 | ||||
| 20,000,000 | Bank of Ireland, Series YCD, 2.991%, 10/22/08 | 20,000,000 | ||||
| 15,000,000 | Bank of Montreal, Chicago, 2.988%, 10/6/08(d) | 15,000,000 | ||||
| 10,000,000 | Bank of Montreal, Chicago, 3.190%, 10/10/08 | 10,000,000 | ||||
| 20,000,000 | Bank of Montreal, Chicago, 3.184%, 11/14/08 | 20,000,000 | ||||
| 25,000,000 | Bank of Montreal, Chicago, 3.245%, 12/8/08 | 25,000,000 | ||||
| 3,070,000 | Christian Life Assembly of the Assemblies of God (Fulton Bank), 8.750%, 10/2/08 | 3,070,000 | ||||
| 2,140,000 | Damascus, Ltd. (Hunting National Bank), 9.580%, 10/2/08 | 2,140,000 | ||||
| 7,795,000 | Eastland Court Apartment Homes LLC (Columbus Bank & Trust), 9.210%, 10/2/08 | 7,795,000 | ||||
| 1,505,000 | Guilford Capital LLC, Series 02-A (Regions Bank), 4.053%, 10/2/08 | 1,505,000 | ||||
| 4,785,000 | HC Equities LP, Series 2001 (Wachovia Bank N.A.), 6.000%, 10/2/08 | 4,785,000 | ||||
| 3,475,000 | Indian Hills Country Club, Series 2000 (Regions Bank), 3.680%, 10/2/08 | 3,475,000 | ||||
| 20,000,000 | National Australia Bank, Ltd., 3.025%, 12/8/08(d) | 20,000,000 | ||||
| 10,000,000 | Natixis, NY Branch, 2.991%, 10/1/08 | 10,000,000 | ||||
| 5,000,000 | Royal Bank of Scotland Group PLC, 2.495%, 10/8/08 | 5,000,000 | ||||
| 5,230,000 | Shalom Church, Series 2005 (Region Bank), 3.680%, 10/2/08 | 5,230,000 | ||||
| 3,410,000 | Spira Millennium LLC, Series 2001 (Bank of America N.A.), 10.000%, 10/2/08 | 3,410,000 | ||||
| 13,980,000 | Stone Creek LLC (Columbus Bank and Trust Co.), 7.800%, 10/2/08 | 13,980,000 | ||||
| 15,000,000 | Svenska Handelsbanken AB, 3.001%, 10/6/08 | 15,000,000 | ||||
| 10,000,000 | Svenska Handelsbanken AB, 3.150%, 10/27/08(d) | 10,000,000 | ||||
| 9,592,000 | TOG Properties LLC (Regions Bank), 3.780%, 10/2/08 | 9,592,000 | ||||
| 206,652,000 | ||||||
Brokers & Dealers (1.4%) | ||||||
| 6,500,000 | Merrill Lynch & Co., Inc., Series MTN, 2.908%, 10/20/08(d) | 6,500,000 | ||||
| 8,000,000 | Merrill Lynch & Co., Inc., Series MTN, 3.336%, 10/24/08 | 8,000,000 | ||||
| 10,000,000 | Morgan Stanley, 2.636%, 10/3/08 | 10,000,000 | ||||
| 24,500,000 | ||||||
Energy (0.6%) | ||||||
| 10,000,000 | BP Capital Markets PLC, 2.918%, 12/11/08 | 10,000,000 | ||||
Insurance (0.9%) | ||||||
| 5,000,000 | Genworth Life Insurance Co., 3.203%, 11/10/08(e) | 5,000,000 | ||||
| 5,000,000 | MetLife Insurance Co. of Connecticut, 3.129%, 11/19/08(e) | 5,000,000 | ||||
| 5,000,000 | Metropolitan Life Insurance Co., 3.181%, 11/3/08(e) | 5,000,000 | ||||
| 15,000,000 | ||||||
Municipal Bonds (0.8%) | ||||||
| 3,985,000 | Franklin County, OH, Edison Welding Institute Inc. Project Refunding Revenue Bonds (Huntington National Bank), 9.580%, 10/2/08 | 3,985,000 | ||||
| 4,000,000 | Kansas City, MO, Industrial Development Authority Revenue Bonds, West Edge Project Taxable, (Marshall & Ilsley), 7.000%, 10/1/08 | 4,000,000 | ||||
| 7,000,000 | Maryland State, Economic Development Corp. Revenue Bonds, Human Genome Project Taxable Series A, (Manufacturers & Traders), 3.530%, 10/1/08 | 7,000,000 | ||||
| 14,985,000 | ||||||
Total Variable Rate Notes | 271,137,000 | |||||
| REPURCHASE AGREEMENT (16.3%) | ||||||
| 283,863,000 | Bank of America Corp., 1.75%, dated 09/30/08, due 10/01/08, proceeds at maturity, $283,876,799 (Collateralized fully by Mortgage-Backed Securities) | 283,863,000 | ||||
Total Repurchase Agreement | 283,863,000 | |||||
|
| Total Investments — 99.9% (Cost $1,738,567,984) | 1,738,567,984 | ||||
| Net Other Assets (Liabilities) — 0.1% | 1,627,755 | |||||
| NET ASSETS — 100.0% | $ | 1,740,195,739 | ||||
See footnote legend to Schedules of Portfolio Investments.
See accompanying notes to the financial statements.
81
BB&T U.S. Treasury Money Market Fund
Schedule of Portfolio Investments
September 30, 2008
| Principal Amount | Amortized Cost | ||||||
| U.S. TREASURY NOTES (7.5%) | |||||||
$ | 30,000,000 | 4.875%, 10/31/08 | $ | 30,067,426 | |||
| 40,000,000 | 3.000%, 2/15/09 | 40,157,566 | |||||
| 20,000,000 | 2.625%, 3/15/09 | 20,108,918 | |||||
Total U.S. Treasury Notes | 90,333,910 | ||||||
| U.S. TREASURY BILLS** (41.7%) | |||||||
| 40,000,000 | 0.300%, 10/16/08(h) | 39,995,008 | |||||
| 40,000,000 | 1.869%, 10/16/08 | 39,969,083 | |||||
| 80,000,000 | 0.300%, 10/23/08 | 79,985,358 | |||||
| 40,000,000 | 1.644%, 11/13/08 | 39,921,621 | |||||
| 40,000,000 | 2.179%, 11/13/08(h) | 39,896,800 | |||||
| 40,000,000 | 0.279%, 11/28/08 | 39,982,052 | |||||
| 40,000,000 | 0.150%, 12/4/08 | 39,989,369 | |||||
| 40,000,000 | 1.132%, 12/18/08(h) | 39,873,728 | |||||
| 40,000,000 | 0.310%, 12/26/08 | 39,970,426 | |||||
| 10,000,000 | 1.088%, 1/15/09 | 9,968,067 | |||||
| 30,000,000 | 1.940%, 1/15/09 | 29,829,997 | |||||
| 40,000,000 | 0.250%, 1/29/09 | 39,966,733 | |||||
| 20,000,000 | 1.359%, 3/12/09(h) | 19,878,546 | |||||
Total U.S. Treasury Bills | 499,226,788 | ||||||
| REPURCHASE AGREEMENT (50.8%) | |||||||
| 205,000,000 | Bank of America Corp., 0.05%, dated 09/30/08, due 10/01/08, proceeds at maturity, $205,000,285 (Collateralized fully by U.S. Treasury Securities) | 205,000,000 | |||||
| 193,883,090 | Credit Suisse First Boston, 0.25%, dated 09/30/08, due 10/01/08, proceeds at maturity, $193,884,436 (Collateralized fully by U.S. Treasury Securities) | 193,883,090 | |||||
| 210,000,000 | JPMorgan Chase & Co., 0.15%, dated 09/30/08, due 10/01/08, proceeds at maturity, $210,000,875 (Collateralized fully by U.S. Treasury Securities) | 210,000,000 | |||||
Total Repurchase Agreement | 608,883,090 | ||||||
|
| Total Investments — 100.0% (Cost $1,198,443,788) | 1,198,443,788 | |||||
| Net Other Assets (Liabilities) — 0.0% | (82,119 | ) | |||||
| NET ASSETS — 100.0% | $ | 1,198,361,669 | |||||
See footnote legend to Schedules of Portfolio Investments.
See accompanying notes to the financial statements.
82
BB&T Capital Manager Conservative Growth Fund
Schedule of Portfolio Investments
September 30, 2008
| Shares | Fair Value | ||||
| AFFILIATED INVESTMENT COMPANIES (86.8%) | |||||
| 164,262 | BB&T Equity Income Fund, Institutional Class | $ | 2,031,924 | ||
| 949,591 | BB&T International Equity Fund, Institutional Class | 5,194,263 | |||
| 166,411 | BB&T Large Cap Fund, Institutional Class | 1,892,089 | |||
| 177,708 | BB&T Mid Cap Growth Fund, Institutional Class | 1,885,487 | |||
| 270,631 | BB&T Mid Cap Value Fund, Institutional Class | 2,863,273 | |||
| 68,986 | BB&T Special Opportunities Equity Fund, Institutional Class | 1,074,799 | |||
| 2,928,302 | BB&T Total Return Bond Fund, Institutional Class | 28,990,191 | |||
| 965,536 | BB&T U.S. Treasury Money Market Fund, Institutional Class | 965,536 | |||
Total Affiliated Investment Companies | 44,897,562 | ||||
| EXCHANGE TRADED FUNDS (12.0%) | |||||
| 21,737 | iShares Russell 2000 Index Fund | 1,486,593 | |||
| 40,001 | iShares S&P 500 Index Fund | 4,700,118 | |||
Total Exchange Traded Funds | 6,186,711 | ||||
| Total Investments — 98.8% (Cost $56,037,260) | 51,084,273 | ||||
| Net Other Assets (Liabilities) — 1.2% | 599,901 | ||||
| NET ASSETS — 100.0% | $ | 51,684,174 | |||
See footnote legend to Schedules of Portfolio Investments.
See accompanying notes to the financial statements.
83
BB&T Capital Manager Moderate Growth Fund
Schedule of Portfolio Investments
September 30, 2008
| Shares | Fair Value | ||||
| AFFILIATED INVESTMENT COMPANIES (81.1%) | |||||
| 305,903 | BB&T Equity Income Fund, Institutional Class | $ | 3,784,019 | ||
| 1,765,382 | BB&T International Equity Fund, Institutional Class | 9,656,641 | |||
| 309,213 | BB&T Large Cap Fund, Institutional Class | 3,515,748 | |||
| 330,368 | BB&T Mid Cap Growth Fund, Institutional Class | 3,505,205 | |||
| 503,187 | BB&T Mid Cap Value Fund, Institutional Class | 5,323,714 | |||
| 128,421 | BB&T Special Opportunities Equity Fund, Institutional Class | 2,000,796 | |||
| 2,364,693 | BB&T Total Return Bond Fund, Institutional Class | 23,410,459 | |||
| 1,061,056 | BB&T U.S. Treasury Money Market Fund, Institutional Class | 1,061,055 | |||
Total Affiliated Investment Companies (Cost $59,308,418) | 52,257,637 | ||||
| EXCHANGE TRADED FUNDS (17.8%) | |||||
| 40,451 | iShares Russell 2000 Index Fund | 2,766,444 | |||
| 74,293 | iShares S&P 500 Index Fund | 8,729,428 | |||
Total Exchange Traded Funds | 11,495,872 | ||||
| Total Investments — 98.9% (Cost $72,392,496) | 63,753,509 | ||||
| Net Other Assets (Liabilities) — 1.1% | 704,222 | ||||
| NET ASSETS — 100.0% | $ | 64,457,731 | |||
See footnote legend to Schedules of Portfolio Investments.
See accompanying notes to the financial statements.
84
BB&T Capital Manager Growth Fund
Schedule of Portfolio Investments
September 30, 2008
| Shares | Fair Value | ||||
| AFFILIATED INVESTMENT COMPANIES (77.6%) | |||||
| 291,234 | BB&T Equity Income Fund, Institutional Class | $ | 3,602,568 | ||
| 1,681,226 | BB&T International Equity Fund, Institutional Class | 9,196,308 | |||
| 295,386 | BB&T Large Cap Fund, Institutional Class | 3,358,538 | |||
| 315,150 | BB&T Mid Cap Growth Fund, Institutional Class | 3,343,739 | |||
| 480,123 | BB&T Mid Cap Value Fund, Institutional Class | 5,079,703 | |||
| 122,648 | BB&T Special Opportunities Equity Fund, Institutional Class | 1,910,860 | |||
| 1,082,109 | BB&T Total Return Bond Fund, Institutional Class | 10,712,882 | |||
| 1,219,049 | BB&T U.S. Treasury Money Market Fund, Institutional Class | 1,219,049 | |||
Total Affiliated Investment Companies | 38,423,647 | ||||
| EXCHANGE TRADED FUNDS (22.1%) | |||||
| 38,484 | iShares Russell 2000 Index Fund | 2,631,921 | |||
| 70,776 | iShares S&P 500 Index Fund | 8,316,180 | |||
Total Exchange Traded Funds | 10,948,101 | ||||
| Total Investments — 99.7% (Cost $57,187,987) | 49,371,748 | ||||
| Net Other Assets (Liabilities) — 0.3% | 146,237 | ||||
| NET ASSETS — 100.0% | $ | 49,517,985 | |||
See footnote legend to Schedules of Portfolio Investments.
See accompanying notes to the financial statements.
85
BB&T Capital Manager Equity Fund
Schedule of Portfolio Investments
September 30, 2008
| Shares | Fair Value | |||||
| AFFILIATED INVESTMENT COMPANIES (71.7%) | ||||||
| 190,321 | BB&T Equity Income Fund, Institutional Class | $ | 2,354,268 | |||
| 1,100,685 | BB&T International Equity Fund, Institutional Class | 6,020,748 | ||||
| 193,073 | BB&T Large Cap Fund, Institutional Class | 2,195,244 | ||||
| 206,028 | BB&T Mid Cap Growth Fund, Institutional Class | 2,185,953 | ||||
| 313,583 | BB&T Mid Cap Value Fund, Institutional Class | 3,317,709 | ||||
| 79,988 | BB&T Special Opportunities Equity Fund, Institutional Class | 1,246,207 | ||||
| 684,848 | BB&T U.S. Treasury Money Market Fund, Institutional Class | 684,848 | ||||
Total Affiliated Investment Companies | 18,004,977 | |||||
| EXCHANGE TRADED FUNDS (28.6%) | ||||||
| 25,225 | iShares Russell 2000 Index Fund | 1,725,138 | ||||
| 46,330 | iShares S&P 500 Index Fund | 5,443,775 | ||||
Total Exchange Traded Funds | 7,168,913 | |||||
| Total Investments — 100.3% (Cost $30,626,728) | 25,173,890 | |||||
| Net Other Assets (Liabilities) — (0.3)% | (86,029 | ) | ||||
| NET ASSETS — 100.0% | $ | 25,087,861 | ||||
See footnote legend to Schedules of Portfolio Investments.
See accompanying notes to the financial statements.
86
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 pledged as collateral for securities purchased on a when-issued basis. |
| (c) | Represents a security purchased on a when-issued basis. At September 30, 2008, total cost of investments purchased on a when-issued basis for the Total Return Bond Fund was $9,059,096. |
| (d) | 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. |
| (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 to be illiquid. As of September 30, 2008, these securities represent 1.27% of net assets in the Prime Money Market Fund and 0.24% of net assets in the International Equity Fund. |
| (f) | Illiquid security. |
| (g) | Security held as collateral for written call option. |
| (h) | Represents that all or a portion of the security was on loan as of September 30, 2008. |
| (i) | Security was fair valued by the Board of Trustees. |
| (j) | On September 7, 2008, the Federal Housing Finance Agency (FHFA) placed Fannie Mae and Freddie Mac into conservatorship with FHFA as the conservator. The conservatorship is a statutory process designed to stabilize a troubled institution with the objective of returning the entities to normal business operations. |
| * | 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 September 30, 2008. 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 or zero coupon bond. Rate disclosed represents the annualized yield from date of purchase. |
| *** | Interest bearing commercial paper. |
ADR — American Depository Receipt
AMBAC — American Municipal Bond Insurance Corp.
CIFG — CDC IXIS Financial Guarantee
CR — Custodial Receipts
FGIC — Financial Guaranty Insurance Corp.
FHA — Federal Housing Authority
FSA — Financial Security Assurance
G.O. — General Obligation
GDR — Global Depository Receipt
GTD STD LNS — Guaranteed Student Loans
IBC — Insured Bond Certificates
LLC — Limited Liability Company
MBIA — Municipal Bond Insurance Association
MTN — Medium Term Note
N.A. — North America
OID — Original Issue Discount
OJSC — Open Joint Stock Company
PSF-GTD — Permanent School Fund Guaranteed
REIT — Real Estate Investment Trust
SCSDE — South Carolina School District Enhancement
STEP — Step Coupon Bond
See accompanying notes to the financial statements.
87
Statements of Assets and Liabilities
September 30, 2008
| Large Cap Fund | Mid Cap Value Fund | |||||||
Assets: | ||||||||
Investments: | ||||||||
Investments, at cost* | $ | 290,079,537 | $ | 255,297,212 | ||||
Unrealized appreciation (depreciation) | 23,984,225 | (28,921,351 | ) | |||||
Investments, at fair value | 314,063,762 | 226,375,861 | ||||||
Cash | — | — | ||||||
Foreign currency, at value** | — | — | ||||||
Interest and dividends receivable | 420,120 | 180,274 | ||||||
Receivable for investments sold | 662,218 | 6,055,423 | ||||||
Receivable for capital shares issued | 869,747 | 726,561 | ||||||
Unrealized appreciation on forward foreign currency contracts | — | — | ||||||
Prepaid and other expenses | 18,039 | 15,627 | ||||||
Total Assets | 316,033,886 | 233,353,746 | ||||||
Liabilities: | ||||||||
Call options written (premiums received $ — , $ — , $ — , $ — , $ — , $3,435,544, $200,954 and $ — , respectively) | — | — | ||||||
Cash overdraft | — | — | ||||||
Distributions payable | — | — | ||||||
Unrealized depreciation on forward foreign currency contracts | — | — | ||||||
Payable for investments purchased | — | 6,004,755 | ||||||
Payable for capital shares redeemed | 1,807,548 | 898,626 | ||||||
Payable for collateral received on loaned securities | 12,822,512 | 29,904,758 | ||||||
Accrued expenses and other payables: | ||||||||
Investment advisory fees | 148,534 | 109,397 | ||||||
Administration fees | 24,527 | 16,004 | ||||||
Compliance service fees | 615 | 315 | ||||||
Distribution (12b-1) fees | 14,775 | 9,944 | ||||||
Transfer agent fees | 11,539 | 7,450 | ||||||
Other | 93,160 | 30,619 | ||||||
Total Liabilities | 14,923,210 | 36,981,868 | ||||||
Net Assets | $ | 301,110,676 | $ | 196,371,878 | ||||
Net Assets Consist of: | ||||||||
Capital | $ | 386,934,672 | $ | 242,205,161 | ||||
Accumulated undistributed (distributions in excess of) net investment income | 296,710 | 259,209 | ||||||
Accumulated realized gains (losses) from investment, written option and foreign currency transactions | (110,104,930 | ) | (17,171,140 | ) | ||||
Net unrealized appreciation/(depreciation) on investments, written options and translation of assets and liabilities in foreign currency | 23,984,224 | (28,921,352 | ) | |||||
Net Assets | $ | 301,110,676 | $ | 196,371,878 | ||||
Net Assets | ||||||||
Class A Shares | $ | 36,066,137 | $ | 28,067,727 | ||||
Class B Shares | 7,865,763 | 4,136,260 | ||||||
Class C Shares | 142,656 | 327,605 | ||||||
Institutional Shares | 257,036,120 | 163,840,286 | ||||||
Total | $ | 301,110,676 | $ | 196,371,878 | ||||
Shares of Beneficial Interest Outstanding (Unlimited number of shares authorized, no par value) | ||||||||
Class A Shares | 3,189,187 | 2,674,293 | ||||||
Class B Shares | 707,920 | 407,919 | ||||||
Class C Shares | 12,877 | 32,324 | ||||||
Institutional Shares | 22,618,187 | 15,509,711 | ||||||
Total | 26,528,171 | 18,624,247 | ||||||
Net Asset Value | ||||||||
Class A Shares - redemption price per share | $ | 11.31 | $ | 10.50 | ||||
Class B Shares - offering price per share*** | $ | 11.11 | $ | 10.14 | ||||
Class C Shares - offering price per share*** | $ | 11.08 | $ | 10.14 | ||||
Institutional Shares | $ | 11.36 | $ | 10.56 | ||||
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 | $ | 12.00 | $ | 11.14 | ||||
| * | The BB&T Large Cap, BB&T Mid Cap Value, BB&T Mid Cap Growth, BB&T Small Cap, BB&T International Equity, B&T Special Opportunities Equity, BB&T Equity Income, BB&T Short U.S. Government, BB&T Intermediate U.S. Government, BB&T Total Return Bond, and BB&T U.S. Treasury Money Market include securities on loan of $12,622,909, $30,668,206, $20,443,709, $10,121,901, $2,140,307, $37,141,383, $36,474,852, $4,590,516, $6,940,935, $14,681,022, and $129,654,038, respectively. |
| ** | The International Equity Fund includes foreign currency at cost of $6,282,751. |
| *** | Redemption price per share varies by length of time shares are held. |
See accompanying notes to the financial statements.
88
| Mid Cap Growth Fund | Small Cap Fund | International Equity Fund | Special Opportunities Equity Fund | Equity Income Fund | Short U.S. Government Fund | |||||||||||||||||
| $ | 209,427,681 | $ | 48,605,238 | $ | 131,322,706 | $ | 421,382,270 | $ | 340,992,804 | $ | 52,977,732 | |||||||||||
| (13,395,209 | ) | 2,872,224 | (20,198,028 | ) | (14,026,311 | ) | (16,226,211 | ) | 8,665 | |||||||||||||
| 196,032,472 | 51,477,462 | 111,124,678 | 407,355,959 | 324,766,593 | 52,986,397 | |||||||||||||||||
| — | — | 26,468 | — | — | — | |||||||||||||||||
| — | — | 5,919,036 | — | — | — | |||||||||||||||||
| 186,390 | 70,981 | 337,759 | 137,569 | 1,069,492 | 335,389 | |||||||||||||||||
| 2,825,392 | 3,831,343 | 2,165,241 | 995,102 | 1,887,711 | — | |||||||||||||||||
| 1,209,778 | 175,829 | 784,739 | 4,105,130 | 2,566,657 | 549,221 | |||||||||||||||||
| — | — | 418,953 | — | — | — | |||||||||||||||||
| 12,013 | 13,018 | 12,742 | 21,749 | 21,148 | 1,932 | |||||||||||||||||
| 200,266,045 | 55,568,633 | 120,789,616 | 412,615,509 | 330,311,601 | 53,872,939 | |||||||||||||||||
|
— |
| — | — | 2,251,405 | 533,825 | — | |||||||||||||||
| 106,492 | 1,156,885 | — | — | — | — | |||||||||||||||||
| — | — | — | — | 626,624 | 56,396 | |||||||||||||||||
| — | — | 120,682 | — | — | — | |||||||||||||||||
| 7,006,183 | 650,173 | 3,987,853 | 4,800,972 | 4,053,450 | — | |||||||||||||||||
| 489,633 | 251,618 | 1,204,116 | 1,363,055 | 1,527,506 | — | |||||||||||||||||
| 20,221,387 | 10,776,613 | 911,483 | 36,397,993 | 36,634,946 | 4,196,813 | |||||||||||||||||
| 106,176 | 28,186 | 85,695 | 252,875 | 165,245 | 16,832 | |||||||||||||||||
| 13,991 | 3,493 | 9,358 | 29,505 | 22,073 | 3,466 | |||||||||||||||||
| 292 | 79 | 217 | 527 | 315 | 57 | |||||||||||||||||
| 3,709 | 3,204 | 2,190 | 94,904 | 60,770 | 899 | |||||||||||||||||
| 5,758 | 1,538 | 4,249 | 9,612 | 6,186 | 1,197 | |||||||||||||||||
| 25,857 | 9,562 | 48,519 | 44,925 | 27,222 | 5,706 | |||||||||||||||||
| 27,979,478 | 12,881,351 | 6,374,362 | 45,245,773 | 43,658,162 | 4,281,366 | |||||||||||||||||
| $ | 172,286,567 | $ | 42,687,282 | $ | 114,415,254 | $ | 367,369,736 | $ | 286,653,439 | $ | 49,591,573 | |||||||||||
| $ | 181,984,782 | $ | 55,956,016 | $ | 153,716,998 | $ | 366,444,316 | $ | 301,748,814 | $ | 57,455,190 | |||||||||||
| — | — | (661,873 | ) | — | 438,623 | 134,181 | ||||||||||||||||
|
3,696,994 |
| (16,140,958 | ) | (18,366,413 | ) | 13,767,592 | 1,025,084 | (8,006,463 | ) | ||||||||||||
| (13,395,209 |
) | 2,872,224 | (20,273,458 | ) | (12,842,172 | ) | (16,559,082 | ) | 8,665 | ||||||||||||
| $ | 172,286,567 | $ | 42,687,282 | $ | 114,415,254 | $ | 367,369,736 | $ | 286,653,439 | $ | 49,591,573 | |||||||||||
| $ | 8,092,945 | $ | 6,814,206 | $ | 3,524,421 | $ | 123,248,984 | $ | 98,584,406 | $ | 4,679,854 | |||||||||||
| 2,093,052 | 1,959,984 | 1,280,981 | 26,347,136 | 15,175,771 | — | |||||||||||||||||
| 28,094 | 12,478 | 172,026 | 50,229,519 | 32,637,398 | — | |||||||||||||||||
| 162,072,476 | 33,900,614 | 109,437,826 | 167,544,097 | 140,255,864 | 44,911,719 | |||||||||||||||||
| $ | 172,286,567 | $ | 42,687,282 | $ | 114,415,254 | $ | 367,369,736 | $ | 286,653,439 | $ | 49,591,573 | |||||||||||
|
| ||||||||||||||||||||||
| 814,616 | 600,548 | 663,599 | 8,035,543 | 7,982,494 | 490,777 | |||||||||||||||||
| 224,916 | 180,547 | 269,737 | 1,798,420 | 1,232,974 | — | |||||||||||||||||
| 3,015 | 1,151 | 36,362 | 3,425,763 | 2,653,692 | — | |||||||||||||||||
| 15,285,451 | 2,956,123 | 19,990,253 | 10,751,023 | 11,337,080 | 4,706,171 | |||||||||||||||||
| 16,327,998 | 3,738,369 | 20,959,951 | 24,010,749 | 23,206,240 | 5,196,948 | |||||||||||||||||
| $ | 9.93 | $ | 11.35 | $ | 5.31 | $ | 15.34 | $ | 12.35 | $ | 9.54 | |||||||||||
| $ | 9.31 | $ | 10.86 | $ | 4.75 | $ | 14.65 | $ | 12.31 | $ | — | |||||||||||
| �� | ||||||||||||||||||||||
| $ | 9.32 | $ | 10.84 | $ | 4.73 | $ | 14.66 | $ | 12.30 | $ | — | |||||||||||
| $ | 10.60 | $ | 11.47 | $ | 5.47 | $ | 15.58 | $ | 12.37 | $ | 9.54 | |||||||||||
| 5.75 | % | 5.75 | % | 5.75 | % | 5.75 | % | 5.75 | % | 3.00 | % | |||||||||||
$ |
10.55 |
| $ | 12.04 | $ | 5.64 | $ | 16.28 | $ | 13.09 | $ | 9.83 | ||||||||||
89
BB&T Funds
Statements of Assets and Liabilities
September 30, 2008
| Intermediate U.S. Government Fund | Total Return Bond Fund | |||||||
Assets: | ||||||||
Investments, at cost* | $ | 130,648,034 | $ | 479,940,548 | ||||
unrealized depreciation | (1,457,204 | ) | (14,246,129 | ) | ||||
Investments, at fair value | 129,190,830 | 465,694,419 | ||||||
Interest and dividends receivable | 900,684 | 4,058,895 | ||||||
Receivable for investments sold | — | 192,772 | ||||||
Receivable for capital shares issued | 727,247 | 3,731,568 | ||||||
Prepaid and other expenses | 3,945 | 6,328 | ||||||
Total Assets | 130,822,706 | 473,683,982 | ||||||
Liabilities: | ||||||||
Cash Overdraft | — | 61 | ||||||
Distributions payable | 241,136 | 1,194,267 | ||||||
Payable for investments purchased | — | 9,078,596 | ||||||
Payable for capital shares redeemed | 157,234 | 3,840,686 | ||||||
Payable for collateral received on loaned securities | 7,152,963 | 15,365,456 | ||||||
Accrued expenses and other payables: | ||||||||
Investment advisory fees | 47,690 | 178,054 | ||||||
Administration fees | 9,663 | 34,733 | ||||||
Compliance service fees | 185 | 621 | ||||||
Distribution (12b-1) fees | 4,603 | 6,144 | ||||||
Transfer agency fees | 4,322 | 13,317 | ||||||
Other | 17,108 | 58,363 | ||||||
Total Liabilities | 7,634,904 | 29,770,298 | ||||||
Net Assets | $ | 123,187,802 | $ | 443,913,684 | ||||
Net Assets Consist of: | ||||||||
Capital | $ | 137,216,965 | $ | 463,962,376 | ||||
Accumulated undistributed (distributions in excess of) net investment income | 2,087,951 | 615,479 | ||||||
Accumulated realized gains (losses) from investments | (14,659,910 | ) | (6,418,042 | ) | ||||
Net unrealized depreciation on investments | (1,457,204 | ) | (14,246,129 | ) | ||||
Net Assets | $ | 123,187,802 | $ | 443,913,684 | ||||
Net Assets | ||||||||
Class A Shares | $ | 9,653,516 | $ | 8,699,820 | ||||
Class B Shares | 3,069,950 | 4,950,553 | ||||||
Class C Shares | 175,795 | 183,890 | ||||||
Institutional Shares | 110,288,541 | 430,079,421 | ||||||
Total | $ | 123,187,802 | $ | 443,913,684 | ||||
Shares of Beneficial Interest Outstanding (Unlimited number of shares authorized, no par value) | ||||||||
Class A Shares | 962,592 | 880,448 | ||||||
Class B Shares | 306,966 | 500,591 | ||||||
Class C Shares | 17,564 | 18,586 | ||||||
Institutional Shares | 10,975,358 | 43,501,626 | ||||||
Total | 12,262,480 | 44,901,251 | ||||||
Net Asset Value | ||||||||
Class A Shares - redemption price per share | $ | 10.03 | $ | 9.88 | ||||
Class B Shares - offering price per share** | $ | 10.00 | $ | 9.89 | ||||
Class C Shares - offering price per share** | $ | 10.01 | $ | 9.89 | ||||
Institutional Shares | $ | 10.05 | $ | 9.89 | ||||
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 | $ | 10.64 | $ | 10.48 | ||||
| * | The BB&T Large Cap, BB&T Mid Cap Value, BB&T Mid Cap Growth, BB&T Small Cap, BB&T International Equity, B&T Special Opportunities Equity, BB&T Equity Income, BB&T Short U.S. Government, BB&T Intermediate U.S. Government, BB&T Total Return Bond, and BB&T U.S. Treasury Money Market include securities on loan of $12,622,909, $30,668,206, $20,443,709, $10,121,901, $2,140,307, $37,141,383, $36,474,852, $4,590,516, $6,940,935, $14,681,022, and $129,654,038, respectively. |
| ** | Redemption price per share varies by length of time shares are held. |
See accompanying notes to the financial statements.
90
| 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 | West Virginia Intermediate Tax-Free Fund | |||||||||||||||||
| $ | 16,526,831 | $ | 16,481,716 | $ | 124,169,958 | $ | 20,739,639 | $ | 79,028,249 | $ | 73,692,220 | |||||||||||
| (349,248 | ) | (395,369 | ) | (1,647,356 | ) | (619,646 | ) | (236,250 | ) | (1,412,285 | ) | |||||||||||
| 16,177,583 | 16,086,347 | 122,522,602 | 20,119,993 | 78,791,999 | 72,279,935 | |||||||||||||||||
| 231,248 | 183,725 | 1,690,699 | 266,347 | 991,331 | 1,126,949 | |||||||||||||||||
| 128,312 | 193,355 | 891,214 | 132,960 | 1,868,722 | 100,676 | |||||||||||||||||
| 14,500 | — | 61,500 | 317,656 | 97,970 | 50,000 | |||||||||||||||||
| 604 | 745 | 1,032 | 1,444 | 2,115 | 2,577 | |||||||||||||||||
| 16,552,247 | 16,464,172 | 125,167,047 | 20,838,400 | 81,752,137 | 73,560,137 | |||||||||||||||||
| — | — | — | — | — | — | |||||||||||||||||
| 35,184 | 35,358 | 342,959 | 39,146 | 218,729 | 185,144 | |||||||||||||||||
| — | 501,889 | — | — | — | 308,701 | |||||||||||||||||
| 71,969 | 1,973 | 213,171 | 5,347 | 167,202 | 51,730 | |||||||||||||||||
| — | — | — | — | — | — | |||||||||||||||||
| 5,554 | 4,079 | 47,030 | 7,688 | 30,725 | 27,381 | |||||||||||||||||
| 1,310 | 1,313 | 9,807 | 1,594 | 6,447 | 5,651 | |||||||||||||||||
| 19 | 11 | 152 | 22 | 110 | 106 | |||||||||||||||||
| 1,137 | 976 | 4,391 | 1,522 | 1,988 | 3,366 | |||||||||||||||||
| 520 | 445 | 3,371 | 548 | 2,318 | 1,917 | |||||||||||||||||
| 2,553 | 1,948 | 15,777 | 2,748 | 10,391 | 9,433 | |||||||||||||||||
| 118,246 | 547,992 | 636,658 | 58,615 | 437,910 | 593,429 | |||||||||||||||||
| $ | 16,434,001 | $ | 15,916,180 | $ | 124,530,389 | $ | 20,779,785 | $ | 81,314,227 | $ | 72,966,708 | |||||||||||
| $ | 16,623,734 | $ | 16,178,753 | $ | 124,862,230 | $ | 21,046,263 | $ | 80,854,415 | $ | 74,309,203 | |||||||||||
| 1,081 | (481 | ) | 63,879 | 1,168 | 41,165 | (41,328 | ) | |||||||||||||||
| 158,434 | 133,277 | 1,251,636 | 352,000 | 654,897 | 111,118 | |||||||||||||||||
| (349,248 | ) | (395,369 | ) | (1,647,356 | ) | (619,646 | ) | (236,250 | ) | (1,412,285 | ) | |||||||||||
| $ | 16,434,001 | $ | 15,916,180 | $ | 124,530,389 | $ | 20,779,785 | $ | 81,314,227 | $ | 72,966,708 | |||||||||||
| $ | 5,509,734 | $ | 4,389,183 | $ | 20,970,763 | $ | 7,481,319 | $ | 9,682,960 | $ | 16,137,884 | |||||||||||
| — | — | — | — | — | — | |||||||||||||||||
| — | — | — | — | — | — | |||||||||||||||||
| 10,924,267 | 11,526,997 | 103,559,626 | 13,298,466 | 71,631,267 | 56,828,824 | |||||||||||||||||
| $ | 16,434,001 | $ | 15,916,180 | $ | 124,530,389 | $ | 20,779,785 | $ | 81,314,227 | $ | 72,966,708 | |||||||||||
|
| ||||||||||||||||||||||
| 557,453 | 437,187 | 2,078,047 | 751,552 | 871,883 | 1,723,723 | |||||||||||||||||
| — | — | — | — | — | — | |||||||||||||||||
| — | — | — | — | — | — | |||||||||||||||||
| 1,106,557 | 1,146,392 | 10,263,548 | 1,344,683 | 6,451,173 | 6,063,719 | |||||||||||||||||
| 1,664,010 | 1,583,579 | 12,341,595 | 2,096,235 | 7,323,056 | 7,787,442 | |||||||||||||||||
| $ | 9.88 | $ | 10.04 | $ | 10.09 | $ | 9.95 | $ | 11.11 | $ | 9.36 | |||||||||||
| $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | |||||||||||
| $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | |||||||||||
| $ | 9.87 | $ | 10.06 | $ | 10.09 | $ | 9.89 | $ | 11.10 | $ | 9.37 | |||||||||||
| 3.00 | % | 3.00 | % | 3.00 | % | 3.00 | % | 3.00 | % | 3.00 | % | |||||||||||
$ |
10.19 |
| $ | 10.35 | $ | 10.40 | $ | 10.26 | $ | 11.45 | $ | 9.65 | ||||||||||
91
BB&T Funds
Statements of Assets and Liabilities
September 30, 2008
| National Tax-Free Money Market Fund | Prime Money Market Fund | |||||
Assets: | ||||||
Investments: | ||||||
Unaffiliated investments, at cost | $ | 143,809,289 | $ | 1,454,704,984 | ||
Investment in affiliates, at cost | —�� | — | ||||
Total investments, at cost* | 143,809,289 | 1,454,704,984 | ||||
Unrealized appreciation (depreciation) | — | — | ||||
Investments, at value | 143,809,289 | 1,454,704,984 | ||||
Repurchase agreements, at cost | — | 283,863,000 | ||||
Cash | — | 1,363,640 | ||||
Interest and dividends receivable | 671,267 | 3,194,746 | ||||
Receivable for investments sold | 7,424,772 | — | ||||
Receivable for capital shares issued | — | — | ||||
Prepaid and other expenses | 4,482 | 14,366 | ||||
Total Assets | 151,909,810 | 1,743,140,736 | ||||
Liabilities: | ||||||
Distributions payable | 409,976 | 1,790,139 | ||||
Payable for investments purchased | — | — | ||||
Payable for capital shares redeemed | — | — | ||||
Accrued expenses and other payables: | ||||||
Investment advisory fees | 25,036 | 403,540 | ||||
Administration fees | 11,624 | 134,629 | ||||
Compliance service fees | 132 | 2,455 | ||||
Distribution (12b-1) fees | 3 | 325,927 | ||||
Transfer agency fees | 2,779 | 50,525 | ||||
Other | 16,077 | 237,782 | ||||
Total Liabilities | 465,627 | 2,944,997 | ||||
Net Assets | $ | 151,444,183 | $ | 1,740,195,739 | ||
Net Assets Consist of: | ||||||
Capital | $ | 151,432,040 | $ | 1,740,183,351 | ||
Accumulated undistributed (distributions in excess of) net investment income | — | 790 | ||||
Accumulated realized gains (losses) from investments | 12,143 | 11,598 | ||||
Net unrealized appreciation/(depreciation) on investments | — | — | ||||
Net Assets | $ | 151,444,183 | $ | 1,740,195,739 | ||
Net Assets | ||||||
Class A Shares | $ | 4,066 | $ | 763,151,750 | ||
Class B Shares | 1,098 | 1,766,834 | ||||
Class C Shares | 1,040 | 244,218 | ||||
Institutional Shares | 151,437,979 | 975,032,937 | ||||
Total | $ | 151,444,183 | $ | 1,740,195,739 | ||
Shares of Beneficial Interest Outstanding (Unlimited number of shares authorized, no par value) | ||||||
Class A Shares | 4,064 | 763,146,529 | ||||
Class B Shares | 1,097 | 1,767,608 | ||||
Class C Shares | 1,040 | 244,178 | ||||
Institutional Shares | 151,428,867 | 975,040,813 | ||||
Total | 151,435,068 | 1,740,199,128 | ||||
Net Asset Value | ||||||
Class A Shares - redemption price per share | $ | 1.00 | $ | 1.00 | ||
Class B Shares - offering price per share** | $ | 1.00 | $ | 1.00 | ||
Class C Shares - offering price per share** | $ | 1.00 | $ | 1.00 | ||
Institutional Shares | $ | 1.00 | $ | 1.00 | ||
Maximum Sales Charge - Class A Shares | N/A | N/A | ||||
Maximum Offering Price (100%/(100% - Maximum Sales Charge)) of net asset value adjusted to the nearest cent per share - Class A Shares | $ | 1.00 | $ | 1.00 | ||
| * | The BB&T Large Cap, BB&T Mid Cap Value, BB&T Mid Cap Growth, BB&T Small Cap, BB&T International Equity, B&T Special Opportunities Equity, BB&T Equity Income, BB&T Short U.S. Government, BB&T Intermediate U.S. Government, BB&T Total Return Bond, and BB&T U.S. Treasury Money Market include securities on loan of $12,622,909, $30,668,206, $20,443,709, $10,121,901, $2,140,307, $37,141,383, $36,474,852, $4,590,516, $6,940,935, $14,681,022, and $129,654,038, respectively. |
| ** | Redemption price per share varies by length of time shares are held. |
See accompanying notes to the financial statements.
92
| U.S. Treasury Money Market Fund | Capital Manager Conservative Growth Fund | Capital Manager Moderate Growth Fund | Capital Manager Growth Fund | Capital Manager Equity Fund | |||||||||||||
| $ | 589,560,698 | $ | 7,000,023 | $ | 13,084,078 | $ | 12,415,802 | $ | 8,205,734 | ||||||||
| — | 49,037,237 | 59,308,418 | 44,772,185 | 22,420,994 | |||||||||||||
| 589,560,698 | 56,037,260 | 72,392,496 | 57,187,987 | 30,626,728 | |||||||||||||
| — | (4,952,987 | ) | (8,638,987 | ) | (7,816,239 | ) | (5,452,838 | ) | |||||||||
| 589,560,698 | 51,084,273 | 63,753,509 | 49,371,748 | 25,173,890 | |||||||||||||
| 608,883,090 | — | — | — | — | |||||||||||||
| — | — | — | — | — | |||||||||||||
| 865,458 | 139,854 | 131,941 | 80,650 | 24,395 | |||||||||||||
| — | 1,050,000 | 1,345,000 | 1,980,312 | 134,999 | |||||||||||||
| — | 179,614 | 137,523 | 112,981 | 82,075 | |||||||||||||
| 10,244 | 3,047 | 3,668 | 4,680 | 3,975 | |||||||||||||
| 1,199,319,490 | 52,456,788 | 65,371,641 | 51,550,371 | 25,419,334 | |||||||||||||
| 400,418 | 3,851 | 3,743 | 560 | 1,432 | |||||||||||||
| — | 740,248 | 830,206 | 1,990,000 | 215,090 | |||||||||||||
| — | 14,231 | 48,261 | 16,503 | 103,777 | |||||||||||||
| 213,969 | — | — | — | — | |||||||||||||
| 76,793 | 4 | 11 | 7 | 2 | |||||||||||||
| 1,204 | 78 | 104 | 82 | 43 | |||||||||||||
| 126,093 | 5,207 | 19,226 | 15,740 | 5,991 | |||||||||||||
| 26,691 | 1,673 | 2,280 | 1,555 | 771 | |||||||||||||
| 112,653 | 7,322 | 10,079 | 7,939 | 4,367 | |||||||||||||
| 957,821 | 772,614 | 913,910 | 2,032,386 | 331,473 | |||||||||||||
| $ | 1,198,361,669 | $ | 51,684,174 | $ | 64,457,731 | $ | 49,517,985 | $ | 25,087,861 | ||||||||
| $ | 1,198,361,423 | $ | 56,791,375 | $ | 76,198,286 | $ | 61,884,116 | $ | 32,519,219 | ||||||||
| 246 | (21 | ) | (3,744 | ) | 2,649 | (1,432 | ) | ||||||||||
| — | (154,193 | ) | (3,097,824 | ) | (4,552,541 | ) | (1,977,088 | ) | |||||||||
| — | (4,952,987 | ) | (8,638,987 | ) | (7,816,239 | ) | (5,452,838 | ) | |||||||||
| $ | 1,198,361,669 | $ | 51,684,174 | $ | 64,457,731 | $ | 49,517,985 | $ | 25,087,861 | ||||||||
| $ | 485,031,311 | $ | 7,572,710 | $ | 27,774,865 | $ | 18,320,828 | $ | 5,680,311 | ||||||||
| 596,945 | 4,080,804 | 15,305,232 | 13,306,482 | 5,406,256 | |||||||||||||
| 37,093 | 93,811 | 79,406 | 54,798 | 838 | |||||||||||||
| 712,696,320 | 39,936,849 | 21,298,228 | 17,835,877 | 14,000,456 | |||||||||||||
| $ | 1,198,361,669 | $ | 51,684,174 | $ | 64,457,731 | $ | 49,517,985 | $ | 25,087,861 | ||||||||
|
| |||||||||||||||||
| 485,031,187 | 898,292 | 3,574,000 | 2,498,482 | 767,074 | |||||||||||||
| 597,040 | 483,984 | 2,009,584 | 1,855,527 | 762,126 | |||||||||||||
| 37,093 | 11,159 | 10,357 | 7,641 | 118 | |||||||||||||
| 712,695,609 | 4,695,794 | 2,727,255 | 2,428,918 | 1,872,347 | |||||||||||||
| 1,198,360,929 | 6,089,229 | 8,321,196 | 6,790,568 | 3,401,665 | |||||||||||||
| $ | 1.00 | $ | 8.43 | $ | 7.77 | $ | 7.33 | $ | 7.41 | ||||||||
| $ | 1.00 | $ | 8.43 | $ | 7.62 | $ | 7.17 | $ | 7.09 | ||||||||
| $ | 1.00 | $ | 8.41 | $ | 7.67 | $ | 7.17 | $ | 7.10 | ||||||||
| $ | 1.00 | $ | 8.50 | $ | 7.81 | $ | 7.34 | $ | 7.48 | ||||||||
| N/A | 5.75 | % | 5.75 | % | 5.75 | % | 5.75 | % | |||||||||
$ |
1.00 | $ | 8.94 | $ | 8.24 | $ | 7.78 | $ | 7.86 | ||||||||
93
BB&T Funds
Statements of Operations
For theYear Ended September 30, 2008
| Large Cap Fund | Mid Cap Value Fund | |||||||
Investment Income: | ||||||||
Interest income | $ | — | $ | — | ||||
Dividend income | 10,290,350 | 3,034,407 | ||||||
Foreign tax withholding | — | (20,072 | ) | |||||
Income from securities lending | 52,878 | 127,287 | ||||||
Total investment income | 10,343,228 | 3,141,622 | ||||||
Expenses: | ||||||||
Investment advisory fees (See Note 4) | 3,485,648 | 1,746,914 | ||||||
Administration fees (See Note 4) | 439,424 | 220,548 | ||||||
Distribution fees - Class A Shares | 231,130 | 82,653 | ||||||
Distribution fees - Class B Shares | 122,848 | 49,389 | ||||||
Distribution fees - Class C Shares | 2,033 | 7,412 | ||||||
Compliance service fees (See Note 4) | 3,161 | 2,037 | ||||||
Trustee fees | 23,161 | 9,904 | ||||||
Audit fees | 41,596 | 22,991 | ||||||
Custodian fees | 18,928 | 11,306 | ||||||
Fund accounting fees (See Note 4) | 49,173 | 23,778 | ||||||
Interest fees | — | — | ||||||
Legal fees | 83,743 | 24,705 | ||||||
Printing fees | 69,410 | 12,361 | ||||||
Transfer agent fees (See Note 4) | 175,882 | 93,300 | ||||||
Other | 56,688 | 50,288 | ||||||
Total expenses before waivers | 4,802,825 | 2,357,586 | ||||||
Less expenses reimbursed or waived by the Investment Advisor (See Note 4) | (216,411 | ) | (95,114 | ) | ||||
Less expenses reimbursed or waived by the Distributor (See Note 4) | (115,565 | ) | — | |||||
Net expenses | 4,470,849 | 2,262,472 | ||||||
Net investment income (loss) | 5,872,379 | 879,150 | ||||||
Realized/Unrealized Gains (Losses) on Investments, Written Options and Foreign Currency Transactions: | ||||||||
Net realized gains (losses) from: | ||||||||
Investments | (108,155,884 | ) | (16,834,089 | ) | ||||
Written Options | — | — | ||||||
Foreign currency transactions | — | — | ||||||
Change in unrealized appreciation/depreciation on: | ||||||||
Investments | (66,659,587 | ) | (46,480,519 | ) | ||||
Written Options | — | — | ||||||
Foreign currency transactions | — | — | ||||||
Net realized/unrealized gains (losses) on investments, written options and foreign currency transactions | (174,815,471 | ) | (63,314,608 | ) | ||||
Change in net assets from operations | $ | (168,943,092 | ) | $ | (62,435,458 | ) | ||
See accompanying notes to the financial statements.
94
| Mid Cap Growth Fund | Small Cap Fund | International Equity Fund | Special Opportunities Equity Fund | Equity Income Fund | Short U.S. Government Fund | |||||||||||||||||
| $ | — | $ | 3,798 | $ | 100,591 | $ | — | $ | — | $ | 1,868,426 | |||||||||||
| 1,149,636 | 639,604 | 4,433,161 | 2,696,457 | 9,765,891 | 40,196 | |||||||||||||||||
| (13,888 | ) | — | (371,527 | ) | (21,721 | ) | (164,403 | ) | — | |||||||||||||
| 65,884 | 52,855 | 5,501 | 53,962 | 113,124 | 8,407 | |||||||||||||||||
| 1,201,632 | 696,257 | 4,167,726 | 2,728,698 | 9,714,612 | 1,917,029 | |||||||||||||||||
| 1,525,810 | 671,472 | 1,551,512 | 2,879,490 | 1,548,498 | 263,849 | |||||||||||||||||
| 192,194 | 63,230 | 144,719 | 335,650 | 206,389 | 39,922 | |||||||||||||||||
| 27,205 | 38,172 | 24,436 | 652,908 | 503,360 | 20,776 | |||||||||||||||||
| 26,274 | 26,158 | 18,513 | 297,382 | 155,602 | — | |||||||||||||||||
| 548 | 171 | 3,544 | 532,133 | 292,955 | — | |||||||||||||||||
| 1,781 | 620 | 1,492 | 3,534 | 1,689 | 408 | |||||||||||||||||
| 8,322 | 3,106 | 6,025 | 14,100 | 8,632 | 1,860 | |||||||||||||||||
| 20,979 | 6,598 | 13,734 | 32,950 | 19,488 | 3,750 | |||||||||||||||||
| 9,668 | 3,188 | 313,653 | 16,552 | 9,211 | 2,114 | |||||||||||||||||
| 20,709 | 6,763 | 15,592 | 36,164 | 22,229 | 4,528 | |||||||||||||||||
| 140 | — | — | — | — | — | |||||||||||||||||
| 20,644 | 7,682 | 38,872 | 34,616 | 19,635 | 4,880 | |||||||||||||||||
| 11,509 | 2,846 | 53,970 | 17,502 | 9,500 | 1,934 | |||||||||||||||||
| 76,622 | 26,825 | 57,637 | 142,990 | 85,035 | 17,513 | |||||||||||||||||
| 48,275 | 40,853 | 132,491 | 59,988 | 51,529 | 12,701 | |||||||||||||||||
| 1,990,680 | 897,684 | 2,376,190 | 5,055,959 | 2,933,752 | 374,235 | |||||||||||||||||
| (82,837 | ) | (135,253 | ) | (284,645 | ) | — | — | (66,459 | ) | |||||||||||||
| — | (19,086 | ) | (12,218 | ) | (326,454 | ) | (251,680 | ) | (10,388 | ) | ||||||||||||
| 1,907,843 | 743,345 | 2,079,327 | 4,729,505 | 2,682,072 | 297,388 | |||||||||||||||||
| (706,211 | ) | (47,088 | ) | 2,088,399 | (2,000,807 | ) | 7,032,540 | 1,619,641 | ||||||||||||||
|
| ||||||||||||||||||||||
| 5,590,374 | (9,037,965 | ) | (15,148,532 | ) | 13,134,177 | (929,155 | ) | 195,216 | ||||||||||||||
| — | — | — | 2,632,545 | 1,011,353 | — | |||||||||||||||||
| — | — | (1,244,516 | ) | — | — | — | ||||||||||||||||
| (68,942,001 | ) | (3,331,748 | ) | (36,736,685 | ) | (68,264,422 | ) | (40,894,962 | ) | 22,467 | ||||||||||||
| — | — | — | 1,182,615 | (94,702 | ) | — | ||||||||||||||||
| — | — | 112,802 | — | — | — | |||||||||||||||||
| (63,351,627 |
) | (12,369,713 | ) | (53,016,931 | ) | (51,315,085 | ) | (40,907,466 | ) | 217,683 | |||||||||||
| $ | (64,057,838 | ) | $ | (12,416,801 | ) | $ | (50,928,532 | ) | $ | (53,315,892 | ) | $ | (33,874,926 | ) | $ | 1,837,324 | ||||||
95
BB&T Funds
Statements of Operations
For the Year Ended September 30, 2008
| Intermediate U.S. Government Fund | Total Return Bond Fund | |||||||
Investment Income: | ||||||||
Interest income | $ | 6,771,997 | $ | 23,396,797 | ||||
Dividend income | 115,894 | 257,741 | ||||||
Income from securities lending | 10,463 | 65,829 | ||||||
Total investment income | 6,898,354 | 23,720,367 | ||||||
Expenses: | ||||||||
Investment advisory fees (See Note 4) | 819,557 | 2,744,949 | ||||||
Administration fees (See Note 4) | 127,708 | 427,927 | ||||||
Distribution fees - Class A Shares | 47,062 | 43,581 | ||||||
Distribution fees - Class B Shares | 30,566 | 51,342 | ||||||
Distribution fees - Class C Shares | 2,005 | 1,377 | ||||||
Compliance service fees (See Note 4) | 1,382 | 4,114 | ||||||
Trustee fees | 6,227 | 19,508 | ||||||
Audit fees | 13,287 | 46,260 | ||||||
Custodian fees | 6,445 | 22,369 | ||||||
Fund accounting fees (See Note 4) | 14,141 | 47,031 | ||||||
Interest expense | 358 | — | ||||||
Legal fees | 16,554 | 45,096 | ||||||
Printing fees | 5,478 | 13,907 | ||||||
Transfer agent fees (See Note 4) | 58,043 | 192,551 | ||||||
Other | 23,135 | 48,824 | ||||||
Total expenses before waivers | 1,171,948 | 3,708,836 | ||||||
Less expenses reimbursed or waived by the Investment Advisor (See Note 4) | (165,331 | ) | (552,961 | ) | ||||
Less expenses reimbursed or waived by the Distributor (See Note 4) | (23,531 | ) | (21,790 | ) | ||||
Net expenses | 983,086 | 3,134,085 | ||||||
Net investment income | 5,915,268 | 20,586,282 | ||||||
Realized/Unrealized Gains (Losses) on Investments: | ||||||||
Net realized gains (losses) from: | ||||||||
Investments | 1,437,688 | 4,787,329 | ||||||
Futures contracts | — | 106,102 | ||||||
Change in unrealized appreciation/depreciation on: | ||||||||
Investments | 222,260 | (15,299,384 | ) | |||||
Net realized/unrealized gains (losses) on investments and futures contracts | 1,659,948 | (10,405,953 | ) | |||||
Change in net assets from operations | $ | 7,575,216 | $ | 10,180,329 | ||||
See accompanying notes to the financial statements.
96
| 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 | West Virginia Intermediate Tax-Free Fund | |||||||||||||||||
| $ | 636,073 | $ | 500,837 | $ | 5,031,522 | $ | 761,215 | $ | 3,293,900 | $ | 3,031,618 | |||||||||||
| 16,742 | 17,396 | 84,326 | 20,283 | 46,205 | 51,549 | |||||||||||||||||
| — | — | — | — | — | — | |||||||||||||||||
| 652,815 | 518,233 | 5,115,848 | 781,498 | 3,340,105 | 3,083,167 | |||||||||||||||||
| 96,739 | 81,265 | 720,310 | 110,156 | 480,420 | 318,137 | |||||||||||||||||
| 15,095 | 12,706 | 112,256 | 17,137 | 74,850 | 66,286 | |||||||||||||||||
| 26,126 | 17,815 | 103,192 | 26,544 | 46,496 | 40,069 | |||||||||||||||||
| — | — | — | — | — | — | |||||||||||||||||
| — | — | — | — | — | — | |||||||||||||||||
| 136 | 101 | 958 | 142 | 652 | 606 | |||||||||||||||||
| 655 | 540 | 4,932 | 698 | 3,264 | 2,936 | |||||||||||||||||
| 1,581 | 1,182 | 10,261 | 1,598 | 6,652 | 6,682 | |||||||||||||||||
| 674 | 633 | 5,792 | 849 | 3,938 | 3,372 | |||||||||||||||||
| 1,654 | 1,387 | 12,335 | 1,889 | 8,236 | 7,293 | |||||||||||||||||
| 402 | 7 | — | 30 | 61 | 10 | |||||||||||||||||
| 1,881 | 1,045 | 10,520 | 3,218 | 6,100 | 11,034 | |||||||||||||||||
| 921 | 923 | 5,401 | 903 | 3,396 | 3,520 | |||||||||||||||||
| 6,581 | 5,420 | 48,548 | 7,341 | 32,560 | 28,989 | |||||||||||||||||
| 9,947 | 9,894 | 24,106 | 14,495 | 17,783 | 20,173 | |||||||||||||||||
| 162,392 | 132,918 | 1,058,611 | 185,000 | 684,408 | 509,107 | |||||||||||||||||
| (32,466 | ) | (40,902 | ) | (181,375 | ) | (27,736 | ) | (120,991 | ) | — | ||||||||||||
| (13,063 | ) | (8,907 | ) | (51,596 | ) | (13,272 | ) | (23,248 | ) | — | ||||||||||||
| 116,863 | 83,109 | 825,640 | 143,992 | 540,169 | 509,107 | |||||||||||||||||
| 535,952 | 435,124 | 4,290,208 | 637,506 | 2,799,936 | 2,574,060 | |||||||||||||||||
| 174,779 | 258,887 | 1,286,524 | 367,435 | 674,431 | 80,243 | |||||||||||||||||
| — | — | — | — | — | — | |||||||||||||||||
| (529,441 | ) | (544,735 | ) | (3,853,560 | ) | (881,072 | ) | (1,917,570 | ) | (2,627,985 | ) | |||||||||||
| (354,662 | ) | (285,848 | ) | (2,567,036 | ) | (513,637 | ) | (1,243,139 | ) | (2,547,742 | ) | |||||||||||
| $ | 181,290 | $ | 149,276 | $ | 1,723,172 | $ | 123,869 | $ | 1,556,797 | $ | 26,318 | |||||||||||
97
BB&T Funds
Statements of Operations
For the Year Ended September 30, 2008
| National Tax-Free Money Market Fund | Prime Money Market Fund | |||||||
Investment Income: | ||||||||
Interest income | $ | 3,187,845 | $ | 66,849,717 | ||||
Dividend income | 14,830 | 2,671 | ||||||
Dividend income from affiliates | — | — | ||||||
Income from securities lending | — | — | ||||||
Total investment income: | 3,202,675 | 66,852,388 | ||||||
Expenses: | ||||||||
Investment advisory fees (See Note 4) | 285,892 | 7,059,969 | ||||||
Administration fees (See Note 4) | 108,214 | 1,660,574 | ||||||
Distribution fees - Class A Shares | 2,153 | 4,137,029 | ||||||
Distribution fees - Class B Shares | 11 | 17,129 | ||||||
Distribution fees - Class C Shares | 11 | 3,778 | ||||||
Compliance service fees (See Note 4) | 828 | 12,280 | ||||||
Trustee fees | 4,365 | 82,425 | ||||||
Audit fees | 9,500 | 154,287 | ||||||
Custodian fees | 5,693 | 83,641 | ||||||
Fund accounting fees (See Note 4) | 11,899 | 182,077 | ||||||
Legal fees | 9,336 | 173,322 | ||||||
Printing fees | 3,757 | 91,719 | ||||||
Transfer agent fees (See Note 4) | 50,634 | 743,619 | ||||||
Other | 31,963 | 112,068 | ||||||
Total expenses before waivers | 524,256 | 14,513,917 | ||||||
Less expenses reimbursed or waived by the Investment Advisor (See Note 4) | (58,363 | ) | (2,141,812 | ) | ||||
Less expenses reimbursed or waived by the Distributor (See Note 4) | (1,076 | ) | — | |||||
Net expenses | 464,817 | 12,372,105 | ||||||
Net investment income | 2,737,858 | 54,480,283 | ||||||
Realized/Unrealized Gains (Losses) on Investments: | ||||||||
Net realized gains (losses) from: | ||||||||
Unaffiliated Investments transactions | 14,077 | 11,598 | ||||||
Affiliated Investments transactions | — | — | ||||||
Distributions from affiliated funds | — | — | ||||||
Change in unrealized appreciation/depreciation on: | ||||||||
Investments | — | — | ||||||
Net realized/unrealized gains (losses) on investments | 14,077 | 11,598 | ||||||
Change in net assets from operations | $ | 2,751,935 | $ | 54,491,881 | ||||
See accompanying notes to the financial statements.
98
| U.S. Treasury Money Market Fund | Capital Manager Conservative Growth Fund | Capital Manager Moderate Growth Fund | Capital Manager Growth Fund | Capital Manager Equity Fund | ||||||||||||||
| $ | 24,135,878 | $ | — | $ | — | $ | — | $ | — | |||||||||
| 17,218 | 53,784 | 108,189 | 106,465 | 66,739 | ||||||||||||||
| — | 1,735,386 | 1,592,997 | 860,558 | 193,574 | ||||||||||||||
| 215,655 | — | — | — | — | ||||||||||||||
| 24,368,751 | 1,789,170 | 1,701,186 | 967,023 | 260,313 | ||||||||||||||
| 3,670,003 | 142,627 | 191,751 | 149,780 | 77,562 | ||||||||||||||
| 864,690 | 4 | 11 | 7 | 2 | ||||||||||||||
| 1,571,197 | 46,317 | 167,366 | 113,961 | 37,457 | ||||||||||||||
| 3,877 | 45,618 | 190,105 | 171,488 | 69,674 | ||||||||||||||
| 411 | 852 | 1,115 | 745 | 11 | ||||||||||||||
| 6,358 | 507 | 692 | 537 | 267 | ||||||||||||||
| 41,860 | 2,449 | 3,364 | 2,611 | 976 | ||||||||||||||
| 86,489 | 5,280 | 7,440 | 5,784 | 2,822 | ||||||||||||||
| 46,687 | 2,705 | 3,711 | 2,906 | 1,488 | ||||||||||||||
| 94,027 | 5,821 | 7,838 | 6,120 | 3,172 | ||||||||||||||
| 78,497 | 5,969 | 8,179 | 6,450 | 3,401 | ||||||||||||||
| 44,122 | 2,736 | 3,982 | 3,068 | 1,570 | ||||||||||||||
| 370,727 | 24,517 | 33,396 | 26,314 | 15,012 | ||||||||||||||
| 87,848 | 11,247 | 14,051 | 13,353 | 12,867 | ||||||||||||||
| 6,966,793 | 296,649 | 633,001 | 503,124 | 226,281 | ||||||||||||||
| (1,295,726 | ) | (145,522 | ) | (195,938 | ) | (153,008 | ) | (79,302 | ) | |||||||||
| (50,638 | ) | (23,159 | ) | (83,683 | ) | (56,981 | ) | (18,729 | ) | |||||||||
| 5,620,429 | 127,968 | 353,380 | 293,135 | 128,250 | ||||||||||||||
| 18,748,322 | 1,661,202 | 1,347,806 | 673,888 | 132,063 | ||||||||||||||
| — | (31,031 | ) | (127,784 | ) | (225,464 | ) | (33,054 | ) | ||||||||||
| — | (2,085,954 | ) | (7,748,592 | ) | (8,638,416 | ) | (5,090,903 | ) | ||||||||||
| — | 2,786,516 | 6,459,837 | 6,248,314 | 4,029,705 | ||||||||||||||
| — | (8,423,419 | ) | (14,611,902 | ) | (12,665,160 | ) | (8,434,889 | ) | ||||||||||
| — | (7,753,888 | ) | (16,028,441 | ) | (15,280,726 | ) | (9,529,141 | ) | ||||||||||
| $ | 18,748,322 | $ | (6,092,686 | ) | $ | (14,680,635 | ) | $ | (14,606,838 | ) | $ | (9,397,078 | ) | |||||
99
BB&T Funds
Statements of Changes in Net Assets
| Large Cap Fund | ||||||||
| For the Year Ended September 30, 2008 | For the Year Ended September 30, 2007 | |||||||
From Investment Activities: | ||||||||
Operations: | ||||||||
Net investment income (loss) | $ | 5,872,379 | $ | 10,168,264 | ||||
Net realized gains (losses) on investments | (108,155,884 | ) | 147,788,254 | |||||
Change in unrealized appreciation/depreciation of investments | (66,659,587 | ) | (70,022,396 | ) | ||||
Change in net assets from operations | (168,943,092 | ) | 87,934,122 | |||||
Distributions to Class A Shareholders: | ||||||||
Net investment income | (341,699 | ) | (686,203 | ) | ||||
Net realized gains from investment transactions | (8,274,317 | ) | (7,872,487 | ) | ||||
Distributions to Class B Shareholders: | ||||||||
Net investment income | (44,925 | ) | (101,336 | ) | ||||
Net realized gains from investment transactions | (2,391,787 | ) | (2,322,633 | ) | ||||
Distributions to Class C Shareholders: | ||||||||
Net investment income | (897 | ) | (1,272 | ) | ||||
Net realized gains from investment transactions | (42,713 | ) | (28,087 | ) | ||||
Distributions to Institutional Class Shareholders: | ||||||||
Net investment income | (3,849,660 | ) | (8,772,452 | ) | ||||
Net realized gains from investment transactions | (83,406,706 | ) | (92,332,617 | ) | ||||
Change in net assets from shareholder distributions | (98,352,704 | ) | (112,117,087 | ) | ||||
Capital Transactions: | ||||||||
Change in net assets from capital transactions | (110,500,763 | ) | (21,201,460 | ) | ||||
Change in net assets | (377,796,559 | ) | (45,384,425 | ) | ||||
Net Assets: | ||||||||
Beginning of year | 678,907,235 | 724,291,660 | ||||||
End of year | $ | 301,110,676 | $ | 678,907,235 | ||||
Accumulated undistributed (distributions in excess of) net investment income | $ | 296,710 | $ | (1,339,038 | ) | |||
See accompanying notes to the financial statements.
100
| Mid Cap Value Fund | Mid Cap Growth Fund | Small Cap Fund | ||||||||||||||||||||
| For the Year Ended September 30, 2008 | For the Year Ended September 30, 2007 | For the Year Ended September 30, 2008 | For the Year Ended September 30, 2007 | For the Year Ended September 30, 2008 | For the Year Ended September 30, 2007 | |||||||||||||||||
| $ | 879,150 | $ | 1,151,101 | $ | (706,211 | ) | $ | (461,603 | ) | $ | (47,088 | ) | $ | 552,961 | ||||||||
| (16,834,089 | ) | 32,051,690 | 5,590,374 | 17,485,970 | (9,037,965 | ) | 11,045,537 | |||||||||||||||
| (46,480,519 | ) | (903,836 | ) | (68,942,001 | ) | 34,588,439 | (3,331,748 | ) | (7,334,815 | ) | ||||||||||||
| (62,435,458 | ) | 32,298,955 | (64,057,838 | ) | 51,612,806 | (12,416,801 | ) | 4,263,683 | ||||||||||||||
| (54,349 | ) | (42,266 | ) | — | (11,053 | ) | — | (46,916 | ) | |||||||||||||
| (3,751,755 | ) | (693,630 | ) | (831,721 | ) | (1,325,555 | ) | (698,940 | ) | (553,525 | ) | |||||||||||
| — | (653 | ) | — | — | — | (15,999 | ) | |||||||||||||||
| (562,319 | ) | (279,401 | ) | (199,021 | ) | (325,988 | ) | (268,548 | ) | (242,839 | ) | |||||||||||
| — | (311 | ) | — | — | — | (80 | ) | |||||||||||||||
| (104,132 | ) | (37,242 | ) | (3,514 | ) | (3,932 | ) | (2,260 | ) | (1,227 | ) | |||||||||||
| (574,144 | ) | (908,039 | ) | — | (192,033 | ) | — | (476,954 | ) | |||||||||||||
| (22,736,900 | ) | (8,780,169 | ) | (13,328,532 | ) | (15,466,884 | ) | (6,562,322 | ) | (4,595,341 | ) | |||||||||||
| (27,783,599 | ) | (10,741,711 | ) | (14,362,788 | ) | (17,325,445 | ) | (7,532,070 | ) | (5,932,881 | ) | |||||||||||
| 19,105,124 | 16,717,537 | 38,453,893 | 32,498,094 | (32,010,799 | ) | (27,869,717 | ) | |||||||||||||||
| (71,113,933 | ) | 38,274,781 | (39,966,733 | ) | 66,785,455 | (51,959,670 | ) | (29,538,915 | ) | |||||||||||||
| 267,485,811 | 229,211,030 | 212,253,300 | 145,467,845 | 94,646,952 | 124,185,867 | |||||||||||||||||
| $ | 196,371,878 | $ | 267,485,811 | $ | 172,286,567 | $ | 212,253,300 | $ | 42,687,282 | $ | 94,646,952 | |||||||||||
| $ | 259,209 | $ | 8,271 | $ | — | $ | 197,590 | $ | — | $ | — | |||||||||||
101
BB&T Funds
Statements of Changes in Net Assets, continued
| International Equity Fund | ||||||||
| For the Year Ended September 30, 2008 | For the Year Ended September 30, 2007 | |||||||
From Investment Activities: | ||||||||
Operations: | ||||||||
Net investment income (loss) | $ | 2,088,399 | $ | 2,058,308 | ||||
Net realized gains (losses) on investments, written options and foreign currency transactions | (16,393,048 | ) | 86,150,966 | |||||
Change in unrealized appreciation/depreciation of investments, written options and foreign currency transactions | (36,623,883 | ) | (48,529,737 | ) | ||||
Change in net assets from operations | (50,928,532 | ) | 39,679,537 | |||||
Distributions to Class A Shareholders: | ||||||||
Net investment income | (11,955 | ) | (27,834 | ) | ||||
Net realized gains from investment transactions | (478,211 | ) | (1,856,253 | ) | ||||
Distributions to Class B Shareholders: | ||||||||
Net investment income | (2,081 | ) | (6,694 | ) | ||||
Net realized gains from investment transactions | (200,385 | ) | (752,554 | ) | ||||
Distributions to Class C Shareholders: | ||||||||
Net investment income | (511 | ) | (779 | ) | ||||
Net realized gains from investment transactions | (34,501 | ) | (86,588 | ) | ||||
Distributions to Institutional Class Shareholders: | ||||||||
Net investment income | (540,819 | ) | (1,028,961 | ) | ||||
Net realized gains from investment transactions | (14,487,875 | ) | (59,687,732 | ) | ||||
Change in net assets from shareholder distributions | (15,756,338 | ) | (63,447,395 | ) | ||||
Capital Transactions: | ||||||||
Change in net assets from capital transactions | 9,464,586 | (64,495,685 | ) | |||||
Change in net assets | (57,220,284 | ) | (88,263,543 | ) | ||||
Net Assets: | ||||||||
Beginning of year | 171,635,538 | 259,899,081 | ||||||
End of year | $ | 114,415,254 | $ | 171,635,538 | ||||
Accumulated undistributed (distributions in excess of) net investment income | $ | (661,873 | ) | $ | (1,519,068 | ) | ||
See accompanying notes to the financial statements.
102
| Special Opportunities Equity Fund | Equity Income Fund | Short U.S. Government Fund | ||||||||||||||||||||
| For the Year Ended September 30, 2008 | For the Year Ended September 30, 2007 | For the Year Ended September 30, 2008 | For the Year Ended September 30, 2007 | For the Year Ended September 30, 2008 | For the Year Ended September 30, 2007 | |||||||||||||||||
| $ | (2,000,807 | ) | $ | (458,801 | ) | $ | 7,032,540 | $ | 3,414,388 | $ | 1,619,641 | $ | 2,026,088 | |||||||||
| 15,766,722 | 30,012,518 | 82,198 | 12,836,464 | 195,216 | (260,514 | ) | ||||||||||||||||
| (67,081,807 |
) | 15,949,968 | (40,989,664 | ) | 8,664,766 | 22,467 | 614,081 | ||||||||||||||
| (53,315,892 | ) | 45,503,685 | (33,874,926 | ) | 24,915,618 | 1,837,324 | �� | 2,379,655 | ||||||||||||||
| — | — | (2,376,144 | ) | (1,869,728 | ) | (162,712 | ) | (195,272 | ) | |||||||||||||
| (5,137,250 | ) | (8,162,298 | ) | (3,896,710 | ) | (3,240,578 | ) | — | — | |||||||||||||
| — | — | (254,731 | ) | (204,604 | ) | — | — | |||||||||||||||
| (1,275,392 | ) | (2,323,517 | ) | (594,630 | ) | (530,234 | ) | — | — | |||||||||||||
| — | — | (510,441 | ) | (347,483 | ) | — | — | |||||||||||||||
| (2,183,656 | ) | (3,531,389 | ) | (1,055,156 | ) | (815,203 | ) | — | — | |||||||||||||
| — | — | (2,489,416 | ) | (834,338 | ) | (1,678,801 | ) | (1,968,959 | ) | |||||||||||||
| (5,422,617 | ) | (3,593,835 | ) | (1,897,188 | ) | (905,002 | ) | — | — | |||||||||||||
| (14,018,915 | ) | (17,611,039 | ) | (13,074,416 | ) | (8,747,170 | ) | (1,841,513 | ) | (2,164,231 | ) | |||||||||||
| 102,850,291 | 97,527,607 | 149,218,678 | 49,098,976 | 4,862,017 | (28,085,908 | ) | ||||||||||||||||
| 35,515,484 | 125,420,253 | 102,269,336 | 65,267,424 | 4,857,828 | (27,870,484 | ) | ||||||||||||||||
| 331,854,252 | 206,433,999 | 184,384,103 | 119,116,679 | 44,733,745 | 72,604,229 | |||||||||||||||||
| $ | 367,369,736 | $ | 331,854,252 | $ | 286,653,439 | $ | 184,384,103 | $ | 49,591,573 | $ | 44,733,745 | |||||||||||
| $ | — | $ | — | $ | 438,623 | $ | 125,735 | $ | 134,181 | $ | 229,312 | |||||||||||
103
BB&T Funds
Statements of Changes in Net Assets, continued
| Intermediate U.S. Government Fund | ||||||||
| For the Year Ended September 30, 2008 | For the Year Ended September 30, 2007 | |||||||
From Investment Activities: | ||||||||
Operations: | ||||||||
Net investment income | $ | 5,915,268 | $ | 7,750,672 | ||||
Net realized gains (losses) on investments and futures contracts | 1,437,688 | (462,878 | ) | |||||
Change in unrealized appreciation/depreciation of investments and futures contracts | 222,260 | 1,087,993 | ||||||
Change in net assets from operations | 7,575,216 | 8,375,787 | ||||||
Distributions to Class A Shareholders: | ||||||||
Net investment income | (392,787 | ) | (405,661 | ) | ||||
Distributions to Class B Shareholders: | ||||||||
Net investment income | (104,647 | ) | (122,767 | ) | ||||
Distributions to Class C Shareholders: | ||||||||
Net investment income | (6,854 | ) | (7,341 | ) | ||||
Distributions to Institutional Class Shareholders: | ||||||||
Net investment income | (5,528,547 | ) | (7,236,773 | ) | ||||
Change in net assets from shareholder distributions | (6,032,835 | ) | (7,772,542 | ) | ||||
Capital Transactions: | ||||||||
Change in net assets from capital transactions | (23,014,799 | ) | (122,319,567 | ) | ||||
Change in net assets | (21,472,418 | ) | (121,716,322 | ) | ||||
Net Assets: | ||||||||
Beginning of year | 144,660,220 | 266,376,542 | ||||||
End of year | $ | 123,187,802 | $ | 144,660,220 | ||||
Accumulated undistributed (distributions in excess of) net investment income | $ | 2,087,951 | $ | 1,590,109 | ||||
See accompanying notes to the financial statements.
104
| Total Return Bond Fund | Kentucky Intermediate Tax-Free Fund | Maryland Intermediate Tax-Free Fund | ||||||||||||||||||||
| For the Year Ended September 30, 2008 | For the Year Ended September 30, 2007 | For the Year Ended September 30, 2008 | For the Year Ended September 30, 2007 | For the Year Ended September 30, 2008 | For the Year Ended September 30, 2007 | |||||||||||||||||
| $ | 20,586,282 | $ | 19,967,978 | $ | 535,952 | $ | 480,296 | $ | 435,124 | $ | 347,999 | |||||||||||
| 4,893,431 | 509,275 | 174,779 | 62,735 | 258,887 | 17,542 | |||||||||||||||||
| (15,299,384 | ) | (226,187 | ) | (529,441 | ) | (122,253 | ) | (544,735 | ) | 6,377 | ||||||||||||
| 10,180,329 | 20,251,066 | 181,290 | 420,778 | 149,276 | 371,918 | |||||||||||||||||
| (388,654 | ) | (339,118 | ) | (163,224 | ) | (112,279 | ) | (107,055 | ) | (65,464 | ) | |||||||||||
| (190,134 | ) | (178,658 | ) | — | — | — | — | |||||||||||||||
| (5,112 | ) | (3,775 | ) | — | — | — | — | |||||||||||||||
| (20,998,569 | ) | (19,672,399 | ) | (371,553 | ) | (372,085 | ) | (327,380 | ) | (282,470 | ) | |||||||||||
| (21,582,469 | ) | (20,193,950 | ) | (534,777 | ) | (484,364 | ) | (434,435 | ) | (347,934 | ) | |||||||||||
| 8,423,092 | 68,087,242 | 1,532,728 | 1,413,796 | 5,398,133 | 810,144 | |||||||||||||||||
| (2,979,048 | ) | 68,144,358 | 1,179,241 | 1,350,210 | 5,112,974 | 834,128 | ||||||||||||||||
| 446,892,732 | 378,748,374 | 15,254,760 | 13,904,550 | 10,803,206 | 9,969,078 | |||||||||||||||||
| $ | 443,913,684 | $ | 446,892,732 | $ | 16,434,001 | $ | 15,254,760 | $ | 15,916,180 | $ | 10,803,206 | |||||||||||
| $ | 615,479 | $ | 545,387 | $ | 1,081 | $ | 1,082 | $ | (481 | ) | $ | (483 | ) | |||||||||
105
BB&T Funds
Statements of Changes in Net Assets, continued
| North Carolina Intermediate Tax-Free Fund | ||||||||
| For the Year Ended September 30, 2008 | For the Year Ended September 30, 2007 | |||||||
From Investment Activities: | ||||||||
Operations: | ||||||||
Net investment income | $ | 4,290,208 | $ | 4,009,186 | ||||
Net realized gains on investments | 1,286,524 | 513,471 | ||||||
Change in unrealized appreciation/depreciation of investments | (3,853,560 | ) | (908,406 | ) | ||||
Change in net assets from operations | 1,723,172 | 3,614,251 | ||||||
Distributions to Class A Shareholders: | ||||||||
Net investment income | (688,755 | ) | (663,692 | ) | ||||
Net realized gains from investment transactions | (80,446 | ) | (16,410 | ) | ||||
Distributions to Institutional Class Shareholders: | ||||||||
Net investment income | (3,598,766 | ) | (3,376,300 | ) | ||||
Net realized gains from investment transactions | (392,937 | ) | (76,717 | ) | ||||
Change in net assets from shareholder distributions | (4,760,904 | ) | (4,133,119 | ) | ||||
Capital Transactions: | ||||||||
Change in net assets from capital transactions | 11,618,301 | 9,451,644 | ||||||
Change in net assets | 8,580,569 | 8,932,776 | ||||||
Net Assets: | ||||||||
Beginning of year | 115,949,820 | 107,017,044 | ||||||
End of year | $ | 124,530,389 | $ | 115,949,820 | ||||
Accumulated undistributed (distributions in excess of) net investment income | $ | 63,879 | $ | 62,775 | ||||
See accompanying notes to the financial statements.
106
| South Carolina Intermediate Tax-Free Fund | Virginia Intermediate Tax-Free Fund | West Virginia Intermediate Tax-Free Fund | ||||||||||||||||||||
| For the Year Ended September 30, 2008 | For the Year Ended September 30, 2007 | For the Year Ended September 30, 2008 | For the Year Ended September 30, 2007 | For the Year Ended September 30, 2008 | For the Year Ended September 30, 2007 | |||||||||||||||||
| $ | 637,506 | $ | 644,287 | $ | 2,799,936 | $ | 2,799,580 | $ | 2,574,060 | $ | 2,602,678 | |||||||||||
| 367,435 | 156,690 | 674,431 | 456,932 | 80,243 | 137,978 | |||||||||||||||||
| (881,072 | ) | (263,866 | ) | (1,917,570 | ) | (779,783 | ) | (2,627,985 | ) | (506,541 | ) | |||||||||||
| 123,869 | 537,111 | 1,556,797 | 2,476,729 | 26,318 | 2,234,115 | |||||||||||||||||
| (173,638 | ) | (132,684 | ) | (301,636 | ) | (316,773 | ) | (545,928 | ) | (590,541 | ) | |||||||||||
| (38,461 | ) | (5,564 | ) | (41,927 | ) | (17,262 | ) | (26,658 | ) | (51,255 | ) | |||||||||||
| (462,900 | ) | (525,941 | ) | (2,493,904 | ) | (2,508,248 | ) | (2,023,069 | ) | (1,998,515 | ) | |||||||||||
| (118,799 | ) | (21,671 | ) | (331,095 | ) | (132,683 | ) | (94,238 | ) | (158,341 | ) | |||||||||||
| (793,798 | ) | (685,860 | ) | (3,168,562 | ) | (2,974,966 | ) | (2,689,893 | ) | (2,798,652 | ) | |||||||||||
| 4,891,270 | (2,720,478 | ) | 5,212,442 | 694,202 | 6,215,443 | 3,290,294 | ||||||||||||||||
| 4,221,341 | (2,869,227 | ) | 3,600,677 | 195,965 | 3,551,868 | 2,725,757 | ||||||||||||||||
| 16,558,444 | 19,427,671 | 77,713,550 | 77,517,585 | 69,414,840 | 66,689,083 | |||||||||||||||||
| $ | 20,779,785 | $ | 16,558,444 | $ | 81,314,227 | $ | 77,713,550 | $ | 72,966,708 | $ | 69,414,840 | |||||||||||
| $ | 1,168 | $ | 1,168 | $ | 41,165 | $ | 38,240 | $ | (41,328 | ) | $ | (59,173 | ) | |||||||||
107
BB&T Funds
Statements of Changes in Net Assets, continued
| National Tax-Free Money Market Fund | ||||||||
| For the Year Ended September 30, 2008 | For the Year Ended September 30, 2007 | |||||||
From Investment Activities: | ||||||||
Operations: | ||||||||
Net investment income | $ | 2,737,858 | $ | 3,701,449 | ||||
Net realized gains (losses) from investments and distributions from underlying funds | 14,077 | (1,934 | ) | |||||
Change in unrealized appreciation/depreciation of investments | — | — | ||||||
Change in net assets from operations | 2,751,935 | 3,699,515 | ||||||
Distributions to Class A Shareholders: | ||||||||
Net investment income | (10,692 | ) | (8,765 | ) | ||||
Net realized gains from investment transactions | — | — | ||||||
Distributions to Class B Shareholders: | ||||||||
Net investment income | (18 | ) | (26 | ) | ||||
Net realized gains from investment transactions | — | — | ||||||
Distributions to Class C Shareholders: | ||||||||
Net investment income | (14 | ) | (23 | ) | ||||
Net realized gains from investment transactions | — | — | ||||||
Distributions to Institutional Class Shareholders: | ||||||||
Net investment income | (2,727,134 | ) | (3,695,663 | ) | ||||
Net realized gains from investment transactions | — | — | ||||||
Change in net assets from shareholder distributions | (2,737,858 | ) | (3,704,477 | ) | ||||
Capital Transactions: | ||||||||
Change in net assets from capital transactions | 41,316,045 | 14,358,518 | ||||||
Change in net assets | 41,330,122 | 14,353,556 | ||||||
Net Assets: | ||||||||
Beginning of period | 110,114,061 | 95,760,505 | ||||||
End of period | $ | 151,444,183 | $ | 110,114,061 | ||||
Accumulated undistributed (distributions in excess of) net investment income | $ | — | $ | — | ||||
Share Transactions: | ||||||||
See accompanying notes to the financial statements.
108
| Prime Money Market Fund | U.S. Treasury Money Market Fund | Capital Manager Conservative Growth Fund | ||||||||||||||||||||
| For the Year Ended September 30, 2008 | For the Year Ended September 30, 2007 | For the Year Ended September 30, 2008 | For the Year Ended September 30, 2007 | For the Year Ended September 30, 2008 | For the Year Ended September 30, 2007 | |||||||||||||||||
| $ | 54,480,283 | $ | 75,886,889 | $ | 18,748,322 | $ | 31,809,789 | $ | 1,661,202 | $ | 2,180,717 | |||||||||||
| 11,598 | 443 | — | — | 669,531 | 5,487,471 | |||||||||||||||||
| — | — | — | — | (8,423,419 | ) | (2,270,299 | ) | |||||||||||||||
| 54,491,881 | 75,887,332 | 18,748,322 | 31,809,789 | (6,092,686 | ) | 5,397,889 | ||||||||||||||||
| (23,091,397 | ) | (35,268,612 | ) | (5,415,625 | ) | (7,849,031 | ) | (379,799 | ) | (282,187 | ) | |||||||||||
| — | — | — | — | (675,434 | ) | — | ||||||||||||||||
| (38,723 | ) | (76,320 | ) | (4,407 | ) | (12,300 | ) | (154,488 | ) | (108,391 | ) | |||||||||||
| — | — | — | — | (328,822 | ) | — | ||||||||||||||||
| (9,286 | ) | (17,958 | ) | (536 | ) | (1,442 | ) | (2,782 | ) | (1,897 | ) | |||||||||||
| — | — | — | — | (5,338 | ) | — | ||||||||||||||||
| (31,345,034 | ) | (40,525,183 | ) | (13,327,754 | ) | (23,947,016 | ) | (1,911,902 | ) | (1,497,178 | ) | |||||||||||
| — | — | — | — | (3,205,241 | ) | — | ||||||||||||||||
| (54,484,440 | ) | (75,888,073 | ) | (18,748,322 | ) | (31,809,789 | ) | (6,663,806 | ) | (1,889,653 | ) | |||||||||||
| 204,571,687 | 165,025,324 | 330,323,479 | 218,218,600 | 2,284,184 | (2,857,228 | ) | ||||||||||||||||
| 204,579,128 | 165,024,583 | 330,323,479 | 218,218,600 | (10,472,308 | ) | 651,008 | ||||||||||||||||
| 1,535,616,611 | 1,370,592,028 | 868,038,190 | 649,819,590 | 62,156,482 | 61,505,474 | |||||||||||||||||
| $ | 1,740,195,739 | $ | 1,535,616,611 | $ | 1,198,361,669 | $ | 868,038,190 | $ | 51,684,174 | $ | 62,156,482 | |||||||||||
| $ | 790 | $ | 4,947 | $ | 246 | $ | 246 | $ | (21 | ) | $ | 345,940 | ||||||||||
109
BB&T Funds
Statements of Changes in Net Assets, continued
| Capital Manager Moderate Growth Fund | ||||||||
| For the Year Ended September 30, 2008 | For the Year Ended September 30, 2007 | |||||||
From Investment Activities: | ||||||||
Operations: | ||||||||
Net investment income | $ | 1,347,806 | $ | 2,264,038 | ||||
Net realized gains (losses) from investments and distributions from underlying funds | (1,416,539 | ) | 10,735,025 | |||||
Change in unrealized appreciation/depreciation of investments | (14,611,902 | ) | (3,672,327 | ) | ||||
Change in net assets from operations | (14,680,635 | ) | 9,326,736 | |||||
Distributions to Class A Shareholders: | ||||||||
Net investment income | (1,338,507 | ) | (737,996 | ) | ||||
Net realized gains from investment transactions | (3,913,868 | ) | (718,101 | ) | ||||
Distributions to Class B Shareholders: | ||||||||
Net investment income | (637,141 | ) | (290,527 | ) | ||||
Net realized gains from investment transactions | (2,268,968 | ) | (461,691 | ) | ||||
Distributions to Class C Shareholders: | ||||||||
Net investment income | (3,995 | ) | (1,983 | ) | ||||
Net realized gains from investment transactions | (15,622 | ) | (3,019 | ) | ||||
Distributions to Institutional Class Shareholders: | ||||||||
Net investment income | (1,086,147 | ) | (635,461 | ) | ||||
Net realized gains from investment transactions | (2,971,557 | ) | (562,098 | ) | ||||
Change in net assets from shareholder distributions | (12,235,805 | ) | (3,410,876 | ) | ||||
Capital Transactions: | ||||||||
Change in net assets from capital transactions | 2,384,796 | 2,152,598 | ||||||
Change in net assets | (24,531,644 | ) | 8,068,458 | |||||
Net Assets: | ||||||||
Beginning of year | 88,989,375 | 80,920,917 | ||||||
End of year | $ | 64,457,731 | $ | 88,989,375 | ||||
Accumulated undistributed (distributions in excess of) net investment income | $ | (3,744 | ) | $ | 693,757 | |||
Share Transactions: | ||||||||
See accompanying notes to the financial statements.
110
| Capital Manager Growth Fund | Capital Manager Equity Fund | |||||||||||||
| For the Year Ended September 30, 2008 | For the Year Ended September 30, 2007 | For the Year Ended September 30, 2008 | For the Year Ended September 30, 2007 | |||||||||||
| $ | 673,888 | $ | 1,491,800 | $ | 132,063 | $ | 633,802 | |||||||
| (2,615,566 | ) | 9,706,100 | (1,094,252 | ) | 6,104,990 | |||||||||
| (12,665,160 | ) | (3,050,560 | ) | (8,434,889 | ) | (2,135,302 | ) | |||||||
| (14,606,838 | ) | 8,147,340 | (9,397,078 | ) | 4,603,490 | |||||||||
| (886,881 | ) | (368,492 | ) | (271,820 | ) | (73,217 | ) | |||||||
| (3,182,428 | ) | (597,093 | ) | (1,301,734 | ) | (582,657 | ) | |||||||
| (560,278 | ) | (152,408 | ) | (228,300 | ) | (34,917 | ) | |||||||
| (2,484,154 | ) | (513,654 | ) | (1,263,915 | ) | (610,150 | ) | |||||||
| (2,442 | ) | (568 | ) | (31 | ) | (3 | ) | |||||||
| (10,693 | ) | (1,846 | ) | (175 | ) | (76 | ) | |||||||
| (878,236 | ) | (388,096 | ) | (663,376 | ) | (180,624 | ) | |||||||
| (2,958,707 | ) | (549,734 | ) | (2,967,902 | ) | (1,126,958 | ) | |||||||
| (10,963,819 | ) | (2,571,891 | ) | (6,697,253 | ) | (2,608,602 | ) | |||||||
| 4,277,204 | 2,764,281 | 2,429,937 | 6,125,389 | |||||||||||
| (21,293,453 | ) | 8,339,730 | (13,664,394 | ) | 8,120,277 | |||||||||
| 70,811,438 | 62,471,708 | 38,752,255 | 30,631,978 | |||||||||||
| $ | 49,517,985 | $ | 70,811,438 | $ | 25,087,861 | $ | 38,752,255 | |||||||
| $ | 2,649 | $ | 666,082 | $ | (1,432 | ) | $ | 392,521 | ||||||
111
BB&T Funds
Statements of Changes in Net Assets, continued
| Large Cap Fund | ||||||||
| For the Year Ended September 30, 2008 | For the Year Ended September 30, 2007 | |||||||
Capital Transactions: | ||||||||
Class A Shares: | ||||||||
Proceeds from shares issued | $ | 4,094,192 | $ | 14,187,235 | ||||
Proceeds from shares issued in conversion | — | 9,225,927 | ||||||
Distributions reinvested | 8,375,699 | 8,113,607 | ||||||
Value of shares redeemed | (9,975,098 | ) | (13,877,936 | ) | ||||
Change in net assets from Class A Share transactions | 2,494,793 | 17,648,833 | ||||||
Class B Shares: | ||||||||
Proceeds from shares issued | 528,077 | 11,618,943 | ||||||
Proceeds from shares issued in conversion | — | 8,152,840 | ||||||
Distributions reinvested | 2,406,467 | 2,404,114 | ||||||
Value of shares redeemed | (5,900,383 | ) | (8,075,693 | ) | ||||
Change in net assets from Class B Share transactions | (2,965,839 | ) | 14,100,204 | |||||
Class C Shares: | ||||||||
Proceeds from shares issued | 176,781 | 54,527 | ||||||
Proceeds from shares issued in conversion | — | 40,108 | ||||||
Distributions reinvested | 42,073 | 29,314 | ||||||
Value of shares redeemed | (192,818 | ) | (32,949 | ) | ||||
Change in net assets from Class C Share transactions | 26,036 | 91,000 | ||||||
Institutional Shares: | ||||||||
Proceeds from shares issued | 54,150,546 | 103,348,503 | ||||||
Proceeds from shares issued in conversion | — | 132,004,067 | ||||||
Distributions reinvested | 62,183,344 | 69,131,228 | ||||||
Value of shares redeemed | (226,393,904 | ) | (197,727,473 | ) | ||||
Redemption In-Kind | — | (159,797,822 | ) | |||||
Change in net assets from Institutional Share transactions | (110,060,014 | ) | (53,041,497 | ) | ||||
Change in net assets from capital transactions | $ | (110,505,024 | ) | $ | (21,201,460 | ) | ||
Share Transactions: | ||||||||
Class A Shares: | ||||||||
Issued | 292,219 | 460,785 | ||||||
Issued in conversion | — | 499,435 | ||||||
Reinvested | 566,965 | 439,377 | ||||||
Redeemed | (741,687 | ) | (721,421 | ) | ||||
Change in Class A Shares | 117,497 | 678,176 | ||||||
Class B Shares: | ||||||||
Issued | 38,287 | 55,728 | ||||||
Issued in conversion | — | 446,371 | ||||||
Reinvested | 164,797 | 131,859 | ||||||
Redeemed | (436,535 | ) | (427,558 | ) | ||||
Change in Class B Shares | (233,451 | ) | 206,400 | |||||
Class C Shares: | ||||||||
Issued | 12,588 | 2,585 | ||||||
Issued in conversion | — | 2,201 | ||||||
Reinvested | 2,890 | 1,611 | ||||||
Redeemed | (15,247 | ) | (1,774 | ) | ||||
Change in Class C Shares | 231 | 4,623 | ||||||
Institutional Shares: | ||||||||
Issued | 3,815,821 | 6,062,779 | ||||||
Issued in conversion | — | 7,122,489 | ||||||
Reinvested | 4,188,597 | 3,733,676 | ||||||
Redeemed | (16,751,134 | ) | (10,321,274 | ) | ||||
Redemption In-Kind | — | (7,650,117 | ) | |||||
Change in Institutional Shares | (8,746,716 | ) | (1,052,447 | ) | ||||
Change in Shares | (8,862,439 | ) | (163,248 | ) | ||||
See accompanying notes to the financial statements.
112
| Mid Cap Value Fund | Mid Cap Growth Fund | Small Cap Fund | ||||||||||||||||||||
| For the Year Ended September 30, 2008 | For the Year Ended September 30, 2007 | For the Year Ended September 30, 2008 | For the Year Ended September 30, 2007 | For the Year Ended September 30, 2008 | For the Year Ended September 30, 2007 | |||||||||||||||||
| $ | 31,373,575 | $ | 4,953,978 | $ | 1,505,577 | $ | 968,207 | $ | 908,488 | $ | 1,130,020 | |||||||||||
| — | — | — | — | — | — | |||||||||||||||||
| 3,778,444 | 717,960 | 822,666 | 1,314,016 | 680,951 | 583,726 | |||||||||||||||||
| (10,645,106 | ) | (3,752,987 | ) | (1,891,497 | ) | (2,907,306 | ) | (1,458,959 | ) | (2,141,754 | ) | |||||||||||
| 24,506,913 | 1,918,951 | 436,746 | (625,083 | ) | 130,480 | (428,008 | ) | |||||||||||||||
| 306,602 | 834,235 | 619,001 | 137,186 | 132,492 | 268,340 | |||||||||||||||||
| — | — | — | — | — | — | |||||||||||||||||
| 560,831 | 279,223 | 183,244 | 319,503 | 266,745 | 258,615 | |||||||||||||||||
| (945,376 | ) | (951,182 | ) | (365,179 | ) | (559,369 | ) | (1,052,630 | ) | (1,180,317 | ) | |||||||||||
| (77,943) | 162,276 | 437,066 | (102,680 | ) | (653,393 | ) | (653,362 | ) | ||||||||||||||
| 42,358 | 420,064 | 46,372 | 38,080 | 5,985 | 7,800 | |||||||||||||||||
| — | — | — | — | — | — | |||||||||||||||||
| 93,402 | 32,091 | 3,521 | 3,932 | 2,269 | 1,306 | |||||||||||||||||
| (606,537 | ) | (155,437 | ) | (48,413 | ) | (34,839 | ) | (14,770 | ) | (2,405 | ) | |||||||||||
| (470,777 | ) | 296,718 | 1,480 | 7,173 | (6,516 | ) | 6,701 | |||||||||||||||
| 49,877,344 | 88,153,774 | 74,297,015 | 72,025,727 | 14,297,058 | 27,399,451 | |||||||||||||||||
| — | — | — | — | — | — | |||||||||||||||||
| 17,813,502 | 6,994,315 | 6,724,412 | 8,248,047 | 2,929,232 | 1,897,002 | |||||||||||||||||
| (72,545,320) | (35,880,335 | ) | (43,442,826 | ) | (42,686,040 | ) | (48,707,178 | ) | (19,176,001 | ) | ||||||||||||
| — | (44,928,162 | ) | — | (4,369,050 | ) | — | (36,915,500 | ) | ||||||||||||||
| (4,854,474 | ) | 14,339,592 | 37,578,601 | 33,218,684 | (31,480,888 | ) | (26,795,048 | ) | ||||||||||||||
| $ | 19,103,719 | $ | 16,717,537 | $ | 38,453,893 | $ | 32,498,094 | $ | (32,010,317 | ) | $ | (27,869,717 | ) | |||||||||
| 2,150,405 | 336,068 | 111,756 | 76,131 | 72,286 | 71,913 | |||||||||||||||||
| — | — | — | — | — | — | |||||||||||||||||
| 299,224 | 51,779 | 56,619 | 112,508 | 52,992 | 37,880 | |||||||||||||||||
| (901,246 | ) | (254,537 | ) | (147,297 | ) | (228,749 | ) | (117,039 | ) | (136,614 | ) | |||||||||||
| 1,548,383 | 133,310 | 21,078 | (40,110 | ) | 8,239 | (26,821 | ) | |||||||||||||||
| 26,405 | 58,173 | 50,128 | 11,266 | 10,847 | 17,586 | |||||||||||||||||
| — | — | — | — | — | — | |||||||||||||||||
| 45,707 | 20,652 | 13,385 | 28,732 | 21,564 | 17,270 | |||||||||||||||||
| (84,136 | ) | (66,387 | ) | (30,403 | ) | (47,022 | ) | (87,051 | ) | (77,524 | ) | |||||||||||
| (12,024 | ) | 12,438 | 33,110 | (7,024 | ) | (54,640 | ) | (42,668 | ) | |||||||||||||
| 3,800 | 30,009 | 3,617 | 3,086 | 503 | 513 | |||||||||||||||||
| — | — | — | — | — | — | |||||||||||||||||
| 7,618 | 2,373 | 257 | 353 | 184 | 87 | |||||||||||||||||
| (56,499 | ) | (11,128 | ) | (4,134 | ) | (2,895 | ) | (1,314 | ) | (162 | ) | |||||||||||
| (45,081 | ) | 21,254 | (260 | ) | 544 | (627 | ) | 438 | ||||||||||||||
| 4,073,328 | 5,946,732 | 5,424,728 | 5,255,391 | 1,121,583 | 1,732,916 | |||||||||||||||||
| — | �� | — | — | — | — | — | ||||||||||||||||
| 1,403,044 | 501,319 | 434,674 | 667,395 | 226,021 | 122,519 | |||||||||||||||||
| (6,195,958 | ) | (2,438,770 | ) | (3,144,521 | ) | (3,166,590 | ) | (3,872,224 | ) | (1,210,272 | ) | |||||||||||
| — | (3,269,881 | ) | — | (324,354 | ) | — | (2,454,488 | ) | ||||||||||||||
| (719,586 | ) | 739,400 | 2,714,881 | 2,431,842 | (2,524,620 | ) | (1,809,325 | ) | ||||||||||||||
| 771,692 | 906,402 | 2,768,809 | 2,385,252 | (2,571,648 | ) | (1,878,376 | ) | |||||||||||||||
113
BB&T Funds
Statements of Changes in Net Assets, continued
| International Equity Fund | ||||||||
| For the Year Ended September 30, 2008 | For the Year Ended September 30, 2007 | |||||||
Capital Transactions: | ||||||||
Class A Shares: | ||||||||
Proceeds from shares issued | $ | 1,710,821 | $ | 1,998,611 | ||||
Distributions reinvested | 477,321 | 1,730,260 | ||||||
Value of shares redeemed | (1,749,026 | ) | (1,692,331 | ) | ||||
Change in net assets from Class A Share transactions | 439,116 | 2,036,540 | ||||||
Class B Shares: | ||||||||
Proceeds from shares issued | 496,814 | 389,829 | ||||||
Distributions reinvested | 197,185 | 727,505 | ||||||
Value of shares redeemed | (635,380 | ) | (476,416 | ) | ||||
Change in net assets from Class B Share transactions | 58,619 | 640,918 | ||||||
Class C Shares: | ||||||||
Proceeds from shares issued | 405,510 | 312,057 | ||||||
Distributions reinvested | 34,368 | 83,382 | ||||||
Value of shares redeemed | (346,251 | ) | (274,154 | ) | ||||
Change in net assets from Class C Share transactions | 93,627 | 121,285 | ||||||
Institutional Shares: | ||||||||
Proceeds from shares issued | 40,508,166 | 47,026,787 | ||||||
Distributions reinvested | 12,174,623 | 44,384,210 | ||||||
Value of shares redeemed | (43,809,359 | ) | (158,705,425 | ) | ||||
Redemption In-Kind | — | — | ||||||
Change in net assets from Institutional Share transactions | 8,873,430 | (67,294,428 | ) | |||||
Change in net assets from capital transactions | $ | 9,464,792 | $ | (64,495,685 | ) | |||
Share Transactions: | ||||||||
Class A Shares: | ||||||||
Issued | 229,099 | 175,382 | ||||||
Reinvested | 60,390 | 216,235 | ||||||
Redeemed | (244,295 | ) | (153,239 | ) | ||||
Change in Class A Shares | 45,194 | 238,378 | ||||||
Class B Shares: | ||||||||
Issued | 75,714 | 35,045 | ||||||
Reinvested | 27,694 | 100,131 | ||||||
Redeemed | (100,597 | ) | (42,221 | ) | ||||
Change in Class B Shares | 2,811 | 92,955 | ||||||
Class C Shares: | ||||||||
Issued | 57,268 | 26,712 | ||||||
Reinvested | 4,857 | 11,522 | ||||||
Redeemed | (57,747 | ) | (24,245 | ) | ||||
Change in Class C Shares | 4,378 | 13,989 | ||||||
Institutional Shares: | ||||||||
Issued | 5,457,885 | 3,956,411 | ||||||
Reinvested | 1,494,589 | 5,403,382 | ||||||
Redeemed | (5,955,355 | ) | (12,958,829 | ) | ||||
Redemption In-Kind | — | — | ||||||
Change in Institutional Shares | 997,119 | (3,599,036 | ) | |||||
Change in Shares | 1,049,502 | (3,253,714 | ) | |||||
See accompanying notes to the financial statements.
114
| Special Opportunities Equity Fund | Equity Income Fund | Short U.S. Government Fund | ||||||||||||||||||||
| For the Year Ended September 30, 2008 | For the Year Ended September 30, 2007 | For the Year Ended September 30, 2008 | For the Year Ended September 30, 2007 | For the Year Ended September 30, 2008 | For the Year Ended September 30, 2007 | |||||||||||||||||
| $ | 40,856,686 | $ | 39,074,075 | $ | 34,710,707 | $ | 33,173,623 | $ | 1,048,526 | $ | 229,726 | |||||||||||
| 5,048,436 | 8,015,337 | 5,628,335 | 4,536,352 | 150,983 | 169,142 | |||||||||||||||||
| (23,153,482 | ) | (16,340,289 | ) | (19,460,110 | ) | (9,389,669 | ) | (496,939 | ) | (2,673,820 | ) | |||||||||||
| 22,751,640 | 30,749,123 | 20,878,932 | 28,320,306 | 702,570 | (2,274,952 | ) | ||||||||||||||||
| 4,512,724 | 4,872,905 | 4,803,961 | 4,309,373 | — | — | |||||||||||||||||
| 1,230,275 | 2,216,989 | 821,322 | 702,659 | — | — | |||||||||||||||||
| (3,949,418 | ) | (2,735,045 | ) | (2,168,984 | ) | (1,250,201 | ) | — | — | |||||||||||||
| 1,793,581 | 4,354,849 | 3,456,299 | 3,761,831 | — | — | |||||||||||||||||
| 13,757,104 | 12,824,966 | 13,710,537 | 11,070,676 | — | — | |||||||||||||||||
| 2,118,775 | 3,487,658 | 1,473,697 | 1,128,345 | — | — | |||||||||||||||||
| (6,354,178 | ) | (4,530,200 | ) | (2,618,231 | ) | (2,774,081 | ) | — | — | |||||||||||||
| 9,521,701 | 11,782,424 | 12,566,003 | 9,424,940 | — | — | |||||||||||||||||
| 97,927,526 | 109,366,904 | 121,610,130 | 38,208,367 | 16,917,479 | 10,658,575 | |||||||||||||||||
| 2,934,080 | 1,876,403 | 3,172,202 | 1,230,480 | 771,045 | 743,822 | |||||||||||||||||
| (32,078,237 | ) | (13,032,359 | ) | (12,464,888 | ) | (2,818,120 | ) | (13,529,077 | ) | (37,213,353 | ) | |||||||||||
| — | (47,569,737 | ) | — | (29,028,828 | ) | — | — | |||||||||||||||
| 68,783,369 | 50,641,211 | 112,317,444 | 7,591,899 | 4,159,447 | (25,810,956 | ) | ||||||||||||||||
| $ | 102,850,291 | $ | 97,527,607 | $ | 149,218,678 | $ | 49,098,976 | $ | 4,862,017 | $ | (28,085,908 | ) | ||||||||||
| 2,323,415 | 2,242,033 | 2,521,954 | 2,321,711 | 108,963 | 24,191 | |||||||||||||||||
| 283,620 | 490,235 | 405,008 | 328,353 | 15,762 | 17,801 | |||||||||||||||||
| (1,357,676 | ) | (929,218 | ) | (1,430,735 | ) | (659,727 | ) | (51,766 | ) | (281,535 | ) | |||||||||||
| 1,249,359 | 1,803,050 | 1,496,227 | 1,990,337 | 72,959 | (239,543 | ) | ||||||||||||||||
| 267,355 | 289,148 | 348,224 | 304,174 | — | — | |||||||||||||||||
| 71,904 | 139,785 | 58,978 | 51,282 | — | — | |||||||||||||||||
| (238,226 | ) | (162,722 | ) | (161,268 | ) | (87,861 | ) | — | — | |||||||||||||
| 101,033 | 266,211 | 245,934 | 267,595 | — | — | |||||||||||||||||
| 814,720 | 765,670 | 1,001,325 | 781,282 | — | — | |||||||||||||||||
| 123,760 | 219,764 | 106,251 | 82,322 | — | — | |||||||||||||||||
| (379,374 | ) | (268,443 | ) | (192,606 | ) | (195,251 | ) | — | — | |||||||||||||
| 559,106 | 716,991 | 914,970 | 668,353 | — | — | |||||||||||||||||
| 5,554,590 | 6,193,705 | 8,974,014 | 2,698,449 | 1,760,740 | 1,120,091 | |||||||||||||||||
| 162,733 | 113,584 | 232,928 | 87,705 | 80,416 | 78,186 | |||||||||||||||||
| (1,838,175 | ) | (727,734 | ) | (929,332 | ) | (196,172 | ) | (1,411,966 | ) | (3,915,193 | ) | |||||||||||
| — | (2,765,682 | ) | — | (2,163,102 | ) | — | — | |||||||||||||||
| 3,879,148 | 2,813,873 | 8,277,610 | 426,880 | 429,190 | (2,716,916 | ) | ||||||||||||||||
| 5,788,646 | 5,600,125 | 10,934,741 | 3,353,165 | 502,149 | (2,956,459 | ) | ||||||||||||||||
115
BB&T Funds
Statements of Changes in Net Assets, continued
| Intermediate U.S. Government Fund | ||||||||
| For the Year Ended September 30, 2008 | For the Year Ended September 30, 2007 | |||||||
Capital Transactions: | ||||||||
Class A Shares: | ||||||||
Proceeds from shares issued | $ | 4,151,603 | $ | 2,916,001 | ||||
Distributions reinvested | 353,870 | 361,664 | ||||||
Value of shares redeemed | (3,966,599 | ) | (4,005,349 | ) | ||||
Change in net assets from Class A Share transactions | 538,874 | (727,684 | ) | |||||
Class B Shares: | ||||||||
Proceeds from shares issued | 385,327 | 154,089 | ||||||
Distributions reinvested | 97,910 | 113,023 | ||||||
Value of shares redeemed | (451,241 | ) | (1,292,830 | ) | ||||
Change in net assets from Class B Share transactions | 31,996 | (1,025,718 | ) | |||||
Class C Shares: | ||||||||
Proceeds from shares issued | 36,955 | 51,812 | ||||||
Distributions reinvested | 5,172 | 5,544 | ||||||
Value of shares redeemed | (69,095 | ) | (63,903 | ) | ||||
Change in net assets from Class C Share transactions | (26,968 | ) | (6,547 | ) | ||||
Institutional Shares: | ||||||||
Proceeds from shares issued | 22,634,205 | 21,463,527 | ||||||
Distributions reinvested | 2,070,689 | 2,376,484 | ||||||
Value of shares redeemed | (48,264,831 | ) | (144,399,629 | ) | ||||
Redemption In-Kind | — | — | ||||||
Change in net assets from Institutional Share transactions | (23,559,937 | ) | (120,559,618 | ) | ||||
Change in net assets from capital transactions | $ | (23,016,035 | ) | $ | (122,319,567 | ) | ||
Share Transactions: | ||||||||
Class A Shares: | ||||||||
Issued | 409,227 | 295,035 | ||||||
Reinvested | 34,970 | 36,583 | ||||||
Redeemed | (392,944 | ) | (406,012 | ) | ||||
Change in Class A Shares | 51,253 | (74,394 | ) | |||||
Class B Shares: | ||||||||
Issued | 38,259 | 15,589 | ||||||
Reinvested | 9,709 | 11,470 | ||||||
Redeemed | (44,813 | ) | (131,126 | ) | ||||
Change in Class B Shares | 3,155 | (104,067 | ) | |||||
Class C Shares: | ||||||||
Issued | 3,621 | 5,257 | ||||||
Reinvested | 512 | 562 | ||||||
Redeemed | (6,910 | ) | (6,436 | ) | ||||
Change in Class C Shares | (2,777 | ) | (617 | ) | ||||
Institutional Shares: | ||||||||
Issued | 2,222,644 | 2,166,829 | ||||||
Reinvested | 204,335 | 239,674 | ||||||
Redeemed | (4,767,302 | ) | (14,581,368 | ) | ||||
Redemption In-Kind | — | — | ||||||
Change in Institutional Shares | (2,340,323 | ) | (12,174,865 | ) | ||||
Change in Shares | (2,288,692 | ) | (12,353,943 | ) | ||||
See accompanying notes to the financial statements.
116
| Total Return Bond Fund | Kentucky Intermediate Tax-Free Fund | Maryland Intermediate Tax-Free Fund | ||||||||||||||||||||
| For the Year Ended September 30, 2008 | For the Year Ended September 30, 2007 | For the Year Ended September 30, 2008 | For the Year Ended September 30, 2007 | For the Year Ended September 30, 2008 | For the Year Ended September 30, 2007 | |||||||||||||||||
| $ | 4,023,188 | $ | 3,468,840 | $ | 1,625,822 | $ | 1,866,791 | $ | 2,480,710 | $ | 495,112 | |||||||||||
| 361,811 | 311,187 | 145,862 | 99,051 | 77,643 | 49,164 | |||||||||||||||||
| (3,860,681 | ) | (1,779,311 | ) | (767,557 | ) | (61,529 | ) | (511,076 | ) | (88,708 | ) | |||||||||||
| 524,318 | 2,000,716 | 1,004,127 | 1,904,313 | 2,047,277 | 455,568 | |||||||||||||||||
| 1,208,252 | 851,683 | — | — | — | — | |||||||||||||||||
| 172,345 | 161,640 | — | — | — | — | |||||||||||||||||
| (1,297,198 | ) | (896,952 | ) | — | — | — | — | |||||||||||||||
| 83,399 | 116,371 | — | — | — | — | |||||||||||||||||
| 71,982 | 40,253 | — | — | — | — | |||||||||||||||||
| 5,545 | 3,765 | — | — | — | — | |||||||||||||||||
| (4,672 | ) | (44,757 | ) | — | — | — | — | |||||||||||||||
| 72,855 | (739 | ) | — | — | — | — | ||||||||||||||||
| 129,656,163 | 177,806,545 | 4,491,038 | 2,083,975 | 5,307,244 | 3,509,534 | |||||||||||||||||
| 5,905,278 | 6,152,154 | 510 | 24,784 | 502 | 18,505 | |||||||||||||||||
| (127,818,921 | ) | (100,790,343 | ) | (3,962,947 | ) | (2,599,276 | ) | (1,956,890 | ) | (3,173,463 | ) | |||||||||||
| — | (17,197,462 | ) | — | — | — | — | ||||||||||||||||
| 7,742,520 | 65,970,894 | 528,601 | (490,517 | ) | 3,350,856 | 354,576 | ||||||||||||||||
| $ | 8,423,092 | $ | 68,087,242 | $ | 1,532,728 | $ | 1,413,796 | $ | 5,398,133 | $ | 810,144 | |||||||||||
| 391,613 | 342,963 | 158,556 | 186,791 | 240,284 | 48,939 | |||||||||||||||||
| 35,338 | 30,762 | 14,398 | 9,843 | 7,564 | 4,869 | |||||||||||||||||
| (376,613 | ) | (176,552 | ) | (75,594 | ) | (6,092 | ) | (49,995 | ) | (8,785 | ) | |||||||||||
| 50,338 | 197,173 | 97,360 | 190,542 | 197,853 | 45,023 | |||||||||||||||||
| 117,924 | 84,527 | — | — | — | — | |||||||||||||||||
| 16,814 | 15,961 | — | — | — | — | |||||||||||||||||
| (126,837 | ) | (88,668 | ) | — | — | — | — | |||||||||||||||
| 7,901 | 11,820 | — | — | — | — | |||||||||||||||||
| 7,112 | 3,976 | — | — | — | — | |||||||||||||||||
| 541 | 372 | — | — | — | — | |||||||||||||||||
| (456 | ) | (4,392 | ) | — | — | — | — | |||||||||||||||
| 7,197 | (44 | ) | — | — | — | — | ||||||||||||||||
| 12,641,438 | 17,565,627 | 440,545 | 207,430 | 512,268 | 347,698 | |||||||||||||||||
| 576,342 | 606,933 | 50 | 2,449 | 48 | 1,820 | |||||||||||||||||
| (12,502,515 | ) | (9,966,290 | ) | (391,077 | ) | (257,904 | ) | (189,664 | ) | (315,431 | ) | |||||||||||
| — | (1,689,338 | ) | — | — | — | |||||||||||||||||
| 715,265 | 6,516,932 | 49,518 | (48,025 | ) | 322,652 | 34,087 | ||||||||||||||||
| 780,701 | 6,725,881 | 146,878 | 142,517 | 520,505 | 79,110 | |||||||||||||||||
117
BB&T Funds
Statements of Changes in Net Assets, continued
| North Carolina Intermediate Tax-Free Fund | ||||||||
| For the Year Ended September 30, 2008 | For the Year Ended September 30, 2007 | |||||||
Capital Transactions: | ||||||||
Class A Shares: | ||||||||
Proceeds from shares issued | $ | 2,944,205 | $ | 2,939,881 | ||||
Distributions reinvested | 568,199 | 507,750 | ||||||
Value of shares redeemed | (1,700,381 | ) | (2,851,510 | ) | ||||
Change in net assets from Class A Share transactions | 1,812,023 | 596,121 | ||||||
Institutional Shares: | ||||||||
Proceeds from shares issued | 31,782,264 | 25,728,476 | ||||||
Distributions reinvested | 77,486 | 280,682 | ||||||
Value of shares redeemed | (22,053,472 | ) | (17,153,635 | ) | ||||
Change in net assets from Institutional Share transactions | 9,806,278 | 8,855,523 | ||||||
Change in net assets from capital transactions | $ | 11,618,301 | $ | 9,451,644 | ||||
Share Transactions: | ||||||||
Class A Shares: | ||||||||
Issued | 283,508 | 286,001 | ||||||
Reinvested | 54,918 | 49,151 | ||||||
Redeemed | (163,614 | ) | (277,270 | ) | ||||
Change in Class A Shares | 174,812 | 57,882 | ||||||
Institutional Shares: | ||||||||
Issued | 3,060,340 | 2,490,891 | ||||||
Reinvested | 7,487 | 27,072 | ||||||
Redeemed | (2,122,943 | ) | (1,660,642 | ) | ||||
Change in Institutional Shares | 944,884 | 857,321 | ||||||
Change in Shares | 1,119,696 | 915,203 | ||||||
See accompanying notes to the financial statements.
118
| South Carolina Intermediate Tax-Free Fund | Virginia Intermediate Tax-Free Fund | West Virginia Intermediate Tax-Free Fund | ||||||||||||||||||||
| For the Year Ended September 30, 2008 | For the Year Ended September 30, 2007 | For the Year Ended September 30, 2008 | For the Year Ended September 30, 2007 | For the Year Ended September 30, 2008 | For the Year Ended September 30, 2007 | |||||||||||||||||
| $ | 3,981,152 | $ | 314,862 | $ | 2,172,054 | $ | 706,378 | $ | 3,207,979 | $ | 2,503,718 | |||||||||||
| 198,480 | 123,800 | 238,707 | 222,489 | 382,916 | 441,243 | |||||||||||||||||
| (211,899 | ) | (641,564 | ) | (1,338,143 | ) | (3,948,246 | ) | (3,748,942 | ) | (1,680,758 | ) | |||||||||||
| 3,967,733 | (202,902 | ) | 1,072,618 | (3,019,379 | ) | (158,047 | ) | 1,264,203 | ||||||||||||||
| 5,213,821 | 1,696,157 | 15,679,123 | 16,081,394 | 16,692,942 | 12,202,042 | |||||||||||||||||
| 4,568 | 36,815 | 59,853 | 236,144 | 37,186 | 146,109 | |||||||||||||||||
| (4,294,852 | ) | (4,250,548 | ) | (11,599,152 | ) | (12,603,957 | ) | (10,356,638 | ) | (10,322,060 | ) | |||||||||||
| 923,537 | (2,517,576 | ) | 4,139,824 | 3,713,581 | 6,373,490 | 2,026,091 | ||||||||||||||||
| $ | 4,891,270 | $ | (2,720,478 | ) | $ | 5,212,442 | $ | 694,202 | $ | 6,215,443 | $ | 3,290,294 | ||||||||||
| 386,187 | 30,656 | 190,550 | 62,321 | 331,224 | 256,907 | |||||||||||||||||
| 19,397 | 12,039 | 21,015 | 19,657 | 39,668 | 45,342 | |||||||||||||||||
| (20,650 | ) | (62,516 | ) | (117,539 | ) | (346,447 | ) | (386,959 | ) | (173,236 | ) | |||||||||||
| 384,934 | (19,821 | ) | 94,026 | (264,469 | ) | (16,067 | ) | 129,013 | ||||||||||||||
| 511,702 | 166,035 | 1,373,960 | 1,425,022 | 1,725,229 | 1,257,159 | |||||||||||||||||
| 449 | 3,589 | 5,271 | 20,797 | 3,860 | 14,952 | |||||||||||||||||
| (419,497 | ) | (417,078 | ) | (1,018,856 | ) | (1,118,037 | ) | (1,067,146 | ) | (1,064,904 | ) | |||||||||||
| 92,654 | (247,454 | ) | 360,375 | 327,782 | 661,943 | 207,207 | ||||||||||||||||
| 477,588 | (267,275 | ) | 454,401 | 63,313 | 645,876 | 336,220 | ||||||||||||||||
119
BB&T Funds
Statements of Changes in Net Assets, continued
| National Tax-Free Money Market Fund | ||||||||
| For the Year Ended September 30, 2008 | For the Year Ended September 30, 2007 | |||||||
Capital Transactions: | ||||||||
Class A Shares: | ||||||||
Proceeds from shares issued | $ | 647,092 | $ | 531,598 | ||||
Distributions reinvested | 10,685 | 8,765 | ||||||
Value of shares redeemed | (1,180,165 | ) | (15,000 | ) | ||||
Change in net assets from Class A Share transactions | (522,388 | ) | 525,363 | |||||
Class B Shares: | ||||||||
Proceeds from shares issued | 50 | 122 | ||||||
Distributions reinvested | 17 | 26 | ||||||
Value of shares redeemed | (122 | ) | — | |||||
Change in net assets from Class B Share transactions | (55 | ) | 148 | |||||
Class C Shares: | ||||||||
Proceeds from shares issued | — | — | ||||||
Distributions reinvested | 14 | 22 | ||||||
Value of shares redeemed | — | — | ||||||
Change in net assets from Class C Share transactions | 14 | 22 | ||||||
Institutional Shares: | ||||||||
Proceeds from shares issued | 271,228,429 | 211,070,119 | ||||||
Distributions reinvested | 24 | 34 | ||||||
Value of shares redeemed | (229,389,979 | ) | (197,237,168 | ) | ||||
Change in net assets from Institutional Share transactions | 41,838,474 | 13,832,985 | ||||||
Change in net assets from capital transactions | $ | 41,316,045 | $ | 14,358,518 | ||||
Share Transactions: | ||||||||
Class A Shares: | ||||||||
Issued | 647,092 | 531,598 | ||||||
Reinvested | 10,685 | 8,765 | ||||||
Redeemed | (1,180,081 | ) | (15,000 | ) | ||||
Change in Class A Shares | (522,304 | ) | 525,363 | |||||
Class B Shares: | ||||||||
Issued | 50 | 122 | ||||||
Reinvested | 17 | 26 | ||||||
Redeemed | (122 | ) | — | |||||
Change in Class B Shares | (55 | ) | 148 | |||||
Class C Shares: | ||||||||
Issued | — | — | ||||||
Reinvested | 14 | 22 | ||||||
Redeemed | — | — | ||||||
Change in Class C Shares | 14 | 22 | ||||||
Institutional Shares: | ||||||||
Issued | 271,228,345 | 211,070,119 | ||||||
Reinvested | 24 | 34 | ||||||
Redeemed | (229,389,979 | ) | (197,237,168 | ) | ||||
Change in Institutional Shares | 41,838,390 | 13,832,985 | ||||||
Change in Shares | 41,316,045 | 14,358,518 | ||||||
See accompanying notes to the financial statements.
120
| Prime Money Market Fund | U.S. Treasury Money Market Fund | Capital Manager Conservative Growth Fund | ||||||||||||||||||||
| For the Year Ended September 30, 2008 | For the Year Ended September 30, 2007 | For the Year Ended September 30, 2008 | For the Year Ended September 30, 2007 | For the Year Ended September 30, 2008 | For the Year Ended September 30, 2007 | |||||||||||||||||
| $ | 883,890,942 | $ | 948,772,570 | $ | 491,757,763 | $ | 326,268,815 | $ | 1,694,450 | $ | 2,220,068 | |||||||||||
| 23,082,837 | 35,261,332 | 5,415,250 | 7,848,573 | 1,010,158 | 269,207 | |||||||||||||||||
| (889,204,868 | ) | (874,980,414 | ) | (322,554,015 | ) | (191,604,870 | ) | (2,902,409 | ) | (2,602,438 | ) | |||||||||||
| 17,768,911 | 109,053,488 | 174,618,998 | 142,512,518 | (197,801 | ) | (113,163 | ) | |||||||||||||||
| 1,405,424 | 523,824 | 734,529 | 155,333 | 853,169 | 778,104 | |||||||||||||||||
| 35,735 | 71,703 | 4,078 | 11,578 | 469,631 | 105,342 | |||||||||||||||||
| (1,302,998 | ) | (1,222,026 | ) | (442,830 | ) | (246,200 | ) | (1,018,074 | ) | (1,347,548 | ) | |||||||||||
| 138,161 | (626,499 | ) | 295,777 | (79,289 | ) | 304,726 | (464,102 | ) | ||||||||||||||
| 591,737 | 1,141,860 | — | 10,635 | 38,452 | 617 | |||||||||||||||||
| 6,991 | 14,231 | 536 | 1,426 | 8,067 | 1,896 | |||||||||||||||||
| (814,854 | ) | (1,088,873 | ) | (5,700 | ) | (24,813 | ) | (10,295 | ) | (58,914 | ) | |||||||||||
| (216,126 | ) | 67,218 | (5,164 | ) | (12,752 | ) | 36,224 | (56,401 | ) | |||||||||||||
| 2,154,640,348 | 2,835,503,117 | 1,477,466,490 | 985,293,326 | 4,321,850 | 4,200,697 | |||||||||||||||||
| 3,002,828 | 4,423,119 | 3,812,095 | 7,579,436 | 5,099,022 | 1,492,115 | |||||||||||||||||
| (1,970,762,435 | ) | (2,783,395,119 | ) | (1,325,864,717 | ) | (917,074,639 | ) | (7,279,837 | ) | (7,916,374 | ) | |||||||||||
| 186,880,741 | 56,531,117 | 155,413,868 | 75,798,123 | 2,141,035 | (2,223,562 | ) | ||||||||||||||||
| $ | 204,571,687 | $ | 165,025,324 | $ | 330,323,479 | $ | 218,218,600 | $ | 2,284,184 | $ | (2,857,228 | ) | ||||||||||
| 883,891,108 | 948,772,736 | 491,757,438 | 326,268,815 | 179,927 | 213,560 | |||||||||||||||||
| 23,082,837 | 35,261,333 | 5,415,250 | 7,848,572 | 105,410 | 25,954 | |||||||||||||||||
| (889,204,868 | ) | (874,980,414 | ) | (322,554,015 | ) | (191,604,842 | ) | (315,524 | ) | (251,189 | ) | |||||||||||
| 17,769,077 | 109,053,655 | 174,618,673 | 142,512,545 | (30,187 | ) | (11,675 | ) | |||||||||||||||
| 1,405,455 | 523,825 | 734,529 | 155,333 | 90,995 | 74,835 | |||||||||||||||||
| 35,704 | 71,703 | 4,078 | 11,578 | 48,874 | 10,152 | |||||||||||||||||
| (1,302,998 | ) | (1,222,026 | ) | (442,830 | ) | (246,200 | ) | (109,494 | ) | (129,999 | ) | |||||||||||
| 138,161 | (626,498 | ) | 295,777 | (79,289 | ) | 30,375 | (45,012 | ) | ||||||||||||||
| 591,737 | 1,141,861 | — | 10,635 | 4,134 | 60 | |||||||||||||||||
| 6,991 | 14,231 | 535 | 1,426 | 845 | 184 | |||||||||||||||||
| (814,855 | ) | (1,088,873 | ) | (5,700 | ) | (24,813 | ) | (1,117 | ) | (5,707 | ) | |||||||||||
| (216,127 | ) | 67,219 | (5,165 | ) | (12,752 | ) | 3,862 | (5,463 | ) | |||||||||||||
| 2,154,640,182 | 2,835,503,292 | 1,477,465,931 | 985,293,326 | 460,888 | 402,394 | |||||||||||||||||
| 3,002,828 | 4,423,119 | 3,812,095 | 7,579,436 | 528,361 | 142,689 | |||||||||||||||||
| (1,970,762,435 | ) | (2,783,395,119 | ) | (1,325,864,717 | ) | (917,074,551 | ) | (768,685 | ) | (757,131 | ) | |||||||||||
| 186,880,575 | 56,531,292 | 155,413,309 | 75,798,211 | 220,564 | (212,048 | ) | ||||||||||||||||
| 204,571,686 | 165,025,668 | 330,322,594 | 218,218,715 | 224,614 | (274,198 | ) | ||||||||||||||||
121
BB&T Funds
Statements of Changes in Net Assets, continued
| Capital Manager Moderate Growth Fund | ||||||||
| For the Year Ended September 30, 2008 | For the Year Ended September 30, 2007 | |||||||
Capital Transactions: | ||||||||
Class A Shares: | ||||||||
Proceeds from shares issued | $ | 4,054,599 | $ | 6,992,258 | ||||
Distributions reinvested | 5,146,292 | 1,421,952 | ||||||
Value of shares redeemed | (7,984,960 | ) | (6,274,449 | ) | ||||
Change in net assets from Class A Share transactions | 1,215,931 | 2,139,761 | ||||||
Class B Shares: | ||||||||
Proceeds from shares issued | 1,455,799 | 2,183,340 | ||||||
Distributions reinvested | 2,882,142 | 746,011 | ||||||
Value of shares redeemed | (4,267,809 | ) | (4,246,433 | ) | ||||
Change in net assets from Class B Share transactions | 70,132 | (1,317,082 | ) | |||||
Class C Shares: | ||||||||
Proceeds from shares issued | 13,771 | 67,841 | ||||||
Distributions reinvested | 19,617 | 5,003 | ||||||
Value of shares redeemed | (68,497 | ) | (64,466 | ) | ||||
Change in net assets from Class C Share transactions | (35,109 | ) | 8,378 | |||||
Institutional Shares: | ||||||||
Proceeds from shares issued | 4,551,083 | 7,255,795 | ||||||
Distributions reinvested | 4,023,713 | 1,183,357 | ||||||
Value of shares redeemed | (7,440,954 | ) | (7,117,611 | ) | ||||
Change in net assets from Institutional Share transactions | 1,133,842 | 1,321,541 | ||||||
Change in net assets from capital transactions | $ | 2,384,796 | $ | 2,152,598 | ||||
Share Transactions: | ||||||||
Class A Shares: | ||||||||
Issued | 445,339 | 654,475 | ||||||
Reinvested | 544,253 | 133,980 | ||||||
Redeemed | (895,379 | ) | (585,008 | ) | ||||
Change in Class A Shares | 94,213 | 203,447 | ||||||
Class B Shares: | ||||||||
Issued | 158,755 | 208,734 | ||||||
Reinvested | 309,633 | 71,749 | ||||||
Redeemed | (485,694 | ) | (404,722 | ) | ||||
Change in Class B Shares | (17,306 | ) | (124,239 | ) | ||||
Class C Shares: | ||||||||
Issued | 1,510 | 6,425 | ||||||
Reinvested | 2,091 | 478 | ||||||
Redeemed | (7,716 | ) | (6,210 | ) | ||||
Change in Class C Shares | (4,115 | ) | 693 | |||||
Institutional Shares: | ||||||||
Issued | 497,015 | 676,580 | ||||||
Reinvested | 424,216 | 110,942 | ||||||
Redeemed | (829,826 | ) | (657,885 | ) | ||||
Change in Institutional Shares | 91,405 | 129,637 | ||||||
Change in Shares | 164,197 | 209,538 | ||||||
See accompanying notes to the financial statements.
122
| Capital Manager Growth Fund | Capital Manager Equity Fund | |||||||||||||
| For the Year Ended September 30, 2008 | For the Year Ended September 30, 2007 | For the Year Ended September 30, 2008 | For the Year Ended September 30, 2007 | |||||||||||
| $ | 2,941,986 | $ | 5,576,223 | $ | 704,541 | $ | 1,726,422 | |||||||
| 4,057,489 | 947,443 | 1,550,704 | 604,103 | |||||||||||
| (5,400,646 | ) | (5,187,348 | ) | (2,186,528 | ) | (1,239,442 | ) | |||||||
| 1,598,829 | 1,336,318 | 68,717 | 1,091,083 | |||||||||||
| 927,328 | 2,309,756 | 491,242 | 884,577 | |||||||||||
| 3,024,893 | 661,054 | 1,489,187 | 643,086 | |||||||||||
| (3,701,869 | ) | (3,720,005 | ) | (1,499,992 | ) | (1,473,690 | ) | |||||||
| 250,352 | (749,195 | ) | 480,437 | 53,973 | ||||||||||
| 11,140 | 15,162 | — | 1,013 | |||||||||||
| 13,134 | 2,414 | 206 | 79 | |||||||||||
| (15,905 | ) | (7,327 | ) | — | (10,196 | ) | ||||||||
| 8,369 | 10,249 | 206 | (9,104 | ) | ||||||||||
| 5,209,046 | 5,818,219 | 3,663,772 | 8,080,999 | |||||||||||
| 3,836,943 | 932,155 | 3,545,554 | 1,281,235 | |||||||||||
| (6,626,335 | ) | (4,583,465 | ) | (5,328,749 | ) | (4,372,797 | ) | |||||||
| 2,419,654 | 2,166,909 | 1,880,577 | 4,989,437 | |||||||||||
| $ | 4,277,204 | $ | 2,764,281 | $ | 2,429,937 | $ | 6,125,389 | |||||||
| 323,287 | 515,684 | 77,290 | 146,259 | |||||||||||
| 434,854 | 88,868 | 156,652 | 52,420 | |||||||||||
| (613,123 | ) | (480,641 | ) | (232,401 | ) | (103,919 | ) | |||||||
| 145,018 | 123,911 | 1,541 | 94,760 | |||||||||||
| 107,676 | 217,498 | 53,972 | 76,493 | |||||||||||
| 329,834 | 63,518 | 156,128 | 57,689 | |||||||||||
| (439,284 | ) | (351,080 | ) | (167,455 | ) | (127,251 | ) | |||||||
| (1,774 | ) | (70,064 | ) | 42,645 | 6,931 | |||||||||
| 1,118 | 1,126 | — | 89 | |||||||||||
| 1,432 | 21 | 22 | 7 | |||||||||||
| (2,018 | ) | (143 | ) | — | (910 | ) | ||||||||
| 532 | 1,004 | 22 | (814 | ) | ||||||||||
| 591,710 | 537,595 | 404,707 | 664,857 | |||||||||||
| 411,309 | 87,213 | 355,533 | 110,170 | |||||||||||
| (751,404 | ) | (425,050 | ) | (574,198 | ) | (362,697 | ) | |||||||
| 251,615 | 199,758 | 186,042 | 412,330 | |||||||||||
| 395,391 | 254,609 | 230,250 | 513,207 | |||||||||||
123
BB&T Funds
Financial Highlights, Class A Shares
Selected data for a share of beneficial interest outstanding throughout the periods indicated.
| Investment Activities | Distributions | ||||||||||||||||||||
| 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 Distributions | |||||||||||||||
Large Cap Fund | |||||||||||||||||||||
Year Ended September 30, 2008 | $ | 19.13 | 0.15 | (c) | (5.14 | ) | (4.99 | ) | (0.10 | ) | (2.73 | ) | (2.83 | ) | |||||||
Year Ended September 30, 2007 | $ | 20.33 | 0.24 | (c) | 2.14 | 2.38 | (0.23 | ) | (3.35 | ) | (3.58 | ) | |||||||||
Year Ended September 30, 2006 | $ | 19.47 | 0.30 | (c) | 2.30 | 2.60 | (0.30 | ) | (1.44 | ) | (1.74 | ) | |||||||||
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 | ) | |||||||||||
Mid Cap Value Fund | |||||||||||||||||||||
Year Ended September 30, 2008 | $ | 14.93 | 0.02 | (c) | (3.07 | ) | (3.05 | ) | (0.02 | ) | (1.36 | ) | (1.38 | ) | |||||||
Year Ended September 30, 2007 | $ | 13.49 | 0.04 | (c) | 2.13 | 2.17 | (0.04 | ) | (0.69 | ) | (0.73 | ) | |||||||||
Year Ended September 30, 2006 | $ | 13.35 | 0.03 | (c) | 1.60 | 1.63 | (0.04 | ) | (1.45 | ) | (1.49 | ) | |||||||||
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 | ) | ||||||||||
Mid Cap Growth Fund | |||||||||||||||||||||
Year Ended September 30, 2008 | $ | 14.84 | (0.08 | )(c) | (3.80 | ) | (3.88 | ) | — | (1.03 | ) | (1.03 | ) | ||||||||
Year Ended September 30, 2007 | $ | 12.45 | (0.06 | )(c) | 4.11 | 4.05 | (0.01 | ) | (1.65 | ) | (1.66 | ) | |||||||||
Year Ended September 30, 2006 | $ | 13.90 | (0.01 | )(c) | — | (d) | (0.01 | ) | (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 | — | — | — | ||||||||||||
Small Cap Fund | |||||||||||||||||||||
Year Ended September 30, 2008 | $ | 14.92 | (0.03 | )(c) | (2.34 | ) | (2.37 | ) | — | (1.20 | ) | (1.20 | ) | ||||||||
Year Ended September 30, 2007 | $ | 15.11 | 0.07 | (c) | 0.73 | 0.80 | (0.08 | ) | (0.91 | ) | (0.99 | ) | |||||||||
Year Ended September 30, 2006 | $ | 16.38 | — | (c)(d) | 1.06 | 1.06 | (0.03 | ) | (2.30 | ) | (2.33 | ) | |||||||||
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 | ) | |||||||||
International Equity Fund | |||||||||||||||||||||
Year Ended September 30, 2008 | $ | 8.41 | 0.08 | (c) | (2.41 | ) | (2.33 | ) | (0.02 | ) | (0.75 | ) | (0.77 | ) | |||||||
Year Ended September 30, 2007 | $ | 11.06 | 0.12 | (c) | 1.82 | 1.94 | (0.07 | ) | (4.52 | ) | (4.59 | ) | |||||||||
Year Ended September 30, 2006 | $ | 9.58 | 0.14 | (c) | 1.49 | 1.63 | (0.15 | ) | — | (0.15 | ) | ||||||||||
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 | ) | ||||||||||
Special Opportunities Equity Fund | |||||||||||||||||||||
Year Ended September 30, 2008 | $ | 18.29 | (0.08 | )(c) | (2.12 | ) | (2.20 | ) | — | (0.75 | ) | (0.75 | ) | ||||||||
Year Ended September 30, 2007 | $ | 16.43 | (0.01 | )(c) | 3.47 | 3.46 | — | (1.60 | ) | (1.60 | ) | ||||||||||
Year Ended September 30, 2006 | $ | 15.57 | (0.04 | ) | 1.69 | 1.65 | — | (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 | ) | ||||||||||
Equity Income Fund | |||||||||||||||||||||
Year Ended September 30, 2008 | $ | 15.03 | 0.43 | (c) | (2.21 | ) | (1.78 | ) | (0.32 | ) | (0.58 | ) | (0.90 | ) | |||||||
Year Ended September 30, 2007 | $ | 13.36 | 0.36 | (c) | 2.31 | 2.67 | (0.32 | ) | (0.68 | ) | (1.00 | ) | |||||||||
Year Ended September 30, 2006 | $ | 12.09 | 0.28 | 1.58 | 1.86 | (0.32 | ) | (0.27 | ) | (0.59 | ) | ||||||||||
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 (e) | $ | 10.00 | 0.05 | (c) | 0.34 | 0.39 | (0.04 | ) | — | (0.04 | ) | ||||||||||
Short U.S. Government Fund | |||||||||||||||||||||
Year Ended September 30, 2008 | $ | 9.52 | 0.33 | (c) | 0.07 | 0.40 | (0.38 | ) | — | (0.38 | ) | ||||||||||
Year Ended September 30, 2007 | $ | 9.48 | 0.36 | (c) | 0.07 | 0.43 | (0.39 | ) | — | (0.39 | ) | ||||||||||
Year Ended September 30, 2006 | $ | 9.50 | 0.28 | (c) | 0.01 | (f) | 0.29 | (0.31 | ) | — | (0.31 | ) | |||||||||
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 | ) | ||||||||||
| * | 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) | Not annualized for periods less than one year. |
| (b) | Annualized for periods less than one year. |
| (c) | Per share net investment income (loss) has been calculated using the average daily shares method. |
| (d) | Amount is less than $0.005. |
| (e) | Period from commencement of operations. |
| (f) | The amount shown for a share outstanding throughout the period does not accord with the change in aggregate gains and losses in the portfolio of securities during the period because of the timing of sales and purchases of Fund shares in relation to fluctuating market values during the period. |
See accompanying notes to the financial statements.
124
| Ratios/Supplementary Data | |||||||||||||||||||
Net Asset Value, End of Period | Total Return (excludes sales charge) (a) | Net Assets, End of Period (000) | Ratio of net expenses to average net assets (b) | Ratio of net investment income (loss) to average net assets (b) | Ratio of expenses to average net assets*(b) | Portfolio turnover rate**(a) | |||||||||||||
| $ | 11.31 | (29.46 | )% | $ | 36,066 | 1.14 | % | 1.05 | % | 1.43 | % | 38.43 | % | ||||||
| $ | 19.13 | 12.55 | % | $ | 58,771 | 1.16 | % | 1.25 | % | 1.47 | % | 68.60 | % | ||||||
| $ | 20.33 | 14.29 | % | $ | 48,656 | 1.14 | % | 1.53 | % | 1.43 | % | 34.83 | % | ||||||
| $ | 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 | % | ||||||
| $ | 10.50 | (22.00 | )% | $ | 28,068 | 1.14 | % | 0.17 | % | 1.18 | % | 65.74 | % | ||||||
| $ | 14.93 | 16.48 | % | $ | 16,811 | 1.16 | % | 0.27 | % | 1.20 | % | 58.59 | % | ||||||
| $ | 13.49 | 13.18 | % | $ | 13,393 | 1.13 | % | 0.23 | % | 1.18 | % | 53.92 | % | ||||||
| $ | 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 | % | ||||||
| $ | 9.93 | (28.33 | )% | $ | 8,093 | 1.15 | % | (0.58 | )% | 1.19 | % | 218.03 | % | ||||||
| $ | 14.84 | 36.19 | % | $ | 11,774 | 1.17 | % | (0.49 | )% | 1.21 | % | 134.95 | % | ||||||
| $ | 12.45 | (0.49 | )% | $ | 10,381 | 1.14 | % | (0.07 | )% | 1.19 | % | 140.90 | % | ||||||
| $ | 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 | % | ||||||
| $ | 11.35 | (16.80 | )% | $ | 6,814 | 1.28 | % | (0.23 | )% | 1.73 | % | 94.93 | % | ||||||
| $ | 14.92 | 5.13 | % | $ | 8,839 | 1.31 | % | 0.42 | % | 1.76 | % | 46.54 | % | ||||||
| $ | 15.11 | 6.96 | % | $ | 9,353 | 1.28 | % | (0.03 | )% | 1.77 | % | 43.25 | % | ||||||
| $ | 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 | % | ||||||
| $ | 5.31 | (30.82 | )% | $ | 3,524 | 1.56 | % | 1.11 | % | 1.99 | % | 112.65 | % | ||||||
| $ | 8.41 | 20.13 | % | $ | 5,204 | 1.38 | % | 1.02 | % | 1.75 | % | 129.80 | % | ||||||
| $ | 11.06 | 17.04 | % | $ | 4,202 | 1.40 | % | 1.37 | % | 1.75 | % | 36.22 | % | ||||||
| $ | 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 | % | ||||||
|
|
| ||||||||||||||||||
| $ | 15.34 | (12.61 | )% | $ | 123,249 | 1.24 | % | (0.48 | )% | 1.49 | % | 25.80 | % | ||||||
| $ | 18.29 | 22.24 | % | $ | 124,136 | 1.28 | % | (0.04 | )% | 1.53 | % | 49.43 | % | ||||||
| $ | 16.43 | 11.16 | % | $ | 81,883 | 1.28 | % | (0.26 | )% | 1.53 | % | 58.01 | % | ||||||
| $ | 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 | % | ||||||
| $ | 12.35 | (12.47 | )% | $ | 98,584 | 1.14 | % | 3.09 | % | 1.39 | % | 30.01 | % | ||||||
| $ | 15.03 | 20.83 | % | $ | 97,491 | 1.19 | % | 2.53 | % | 1.44 | % | 37.85 | % | ||||||
| $ | 13.36 | 15.79 | % | $ | 60,059 | 1.20 | % | 2.28 | % | 1.45 | % | 45.38 | % | ||||||
| $ | 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 | % | ||||||
| $ | 9.54 | 4.23 | % | $ | 4,680 | 0.90 | % | 3.42 | % | 1.30 | % | 48.20 | % | ||||||
| $ | 9.52 | 4.67 | % | $ | 3,978 | 0.91 | % | 3.77 | % | 1.31 | % | 44.10 | % | ||||||
| $ | 9.48 | 3.12 | % | $ | 6,233 | 0.89 | % | 2.99 | % | 1.29 | % | 98.08 | % | ||||||
| $ | 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 | % | ||||||
125
BB&T Funds
Financial Highlights, Class A Shares
Selected data for a share of beneficial interest outstanding throughout the periods indicated.
| Investment Activities | Distributions | |||||||||||||||||||
| Net Asset Value, Beginning of Period | Net investment income | Net realized/ unrealized gains (losses) on investments | Total from Investment Activities | Net investment income | Net realized gains on investments | Total Distributions | ||||||||||||||
Intermediate U.S. Government Fund | ||||||||||||||||||||
Year Ended September 30, 2008 | $ | 9.93 | 0.41 | (a) | 0.11 | 0.52 | (0.42 | ) | — | (0.42 | ) | |||||||||
Year Ended September 30, 2007 | $ | 9.89 | 0.42 | (a) | 0.04 | 0.46 | (0.42 | ) | — | (0.42 | ) | |||||||||
Year Ended September 30, 2006 | $ | 10.01 | 0.41 | (a) | (0.11 | ) | 0.30 | (0.42 | ) | — | (0.42 | ) | ||||||||
Year Ended September 30, 2005 | $ | 10.24 | 0.35 | (a) | (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 | ) | ||||||||
Total Return Bond Fund | ||||||||||||||||||||
Year Ended September 30, 2008 | $ | 10.12 | 0.43 | (a) | (0.21 | ) | 0.22 | (0.46 | ) | — | (0.46 | ) | ||||||||
Year Ended September 30, 2007 | $ | 10.12 | 0.44 | (a) | 0.01 | 0.45 | (0.45 | ) | — | (0.45 | ) | |||||||||
Year Ended September 30, 2006 | $ | 10.31 | 0.42 | (a) | (0.12 | ) | 0.30 | (0.44 | ) | (0.05 | ) | (0.49 | ) | |||||||
Year Ended September 30, 2005 | $ | 10.59 | 0.38 | (a) | (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 | ) | |||||||||
Kentucky Intermediate Tax-Free Fund | ||||||||||||||||||||
Year Ended September 30, 2008 | $ | 10.06 | 0.32 | (a) | (0.18 | ) | 0.14 | (0.32 | ) | — | (0.32 | ) | ||||||||
Year Ended September 30, 2007 | $ | 10.12 | 0.32 | (a) | (0.06 | ) | 0.26 | (0.32 | ) | — | (0.32 | ) | ||||||||
Year Ended September 30, 2006 | $ | 10.06 | 0.30 | 0.06 | 0.36 | (0.30 | ) | — | (0.30 | ) | ||||||||||
Year Ended September 30, 2005 | $ | 10.22 | 0.27 | (a) | (0.16 | ) | 0.11 | (0.27 | ) | — | (0.27 | ) | ||||||||
Year Ended September 30, 2004 | $ | 10.23 | 0.27 | (a) | (0.01 | ) | 0.26 | (0.27 | ) | — | (0.27 | ) | ||||||||
Maryland Intermediate Tax-Free Fund | ||||||||||||||||||||
Year Ended September 30, 2008 | $ | 10.15 | 0.31 | (a) | (0.11 | ) | 0.20 | (0.31 | ) | — | (0.31 | ) | ||||||||
Year Ended September 30, 2007 | $ | 10.12 | 0.31 | (a) | 0.03 | 0.34 | (0.31 | ) | — | (0.31 | ) | |||||||||
Year Ended September 30, 2006 | $ | 10.02 | 0.29 | 0.10 | 0.39 | (0.29 | ) | — | (0.29 | ) | ||||||||||
Year Ended September 30, 2005 | $ | 10.15 | 0.26 | (a) | (0.13 | ) | 0.13 | (0.26 | ) | — | (0.26 | ) | ||||||||
Year Ended September 30, 2004 | $ | 10.15 | 0.24 | — | (b) | 0.24 | (0.24 | ) | — | (0.24 | ) | |||||||||
North Carolina Intermediate Tax-Free Fund | ||||||||||||||||||||
Year Ended September 30, 2008 | $ | 10.33 | 0.35 | (a) | (0.20 | ) | 0.15 | (0.35 | ) | (0.04 | ) | (0.39 | ) | |||||||
Year Ended September 30, 2007 | $ | 10.38 | 0.35 | (a) | (0.04 | )(a) | 0.31 | (0.35 | ) | (0.01 | ) | (0.36 | ) | |||||||
Year Ended September 30, 2006 | $ | 10.46 | 0.36 | — | (b) | 0.36 | (0.35 | ) | (0.09 | ) | (0.44 | ) | ||||||||
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 | ) | ||||||||
South Carolina Intermediate Tax-Free Fund | ||||||||||||||||||||
Year Ended September 30, 2008 | $ | 10.28 | 0.34 | (a) | (0.24 | ) | 0.10 | (0.34 | ) | (0.09 | ) | (0.43 | ) | |||||||
Year Ended September 30, 2007 | $ | 10.35 | 0.34 | (a) | (0.05 | ) | 0.29 | (0.35 | ) | (0.01 | ) | (0.36 | ) | |||||||
Year Ended September 30, 2006 | $ | 10.54 | 0.34 | (0.01 | ) | 0.33 | (0.34 | ) | (0.18 | ) | (0.52 | ) | ||||||||
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 | ) | ||||||||
Virginia Intermediate Tax-Free Fund | ||||||||||||||||||||
Year Ended September 30, 2008 | $ | 11.32 | 0.37 | (a) | (0.16 | ) | 0.21 | (0.37 | ) | (0.05 | ) | (0.42 | ) | |||||||
Year Ended September 30, 2007 | $ | 11.39 | 0.38 | (a) | (0.04 | ) | 0.34 | (0.39 | ) | (0.02 | ) | (0.41 | ) | |||||||
Year Ended September 30, 2006 | $ | 11.49 | 0.40 | (0.05 | ) | 0.35 | (0.39 | ) | (0.06 | ) | (0.45 | ) | ||||||||
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 | ) | ||||||||
West Virginia Intermediate Tax-Free Fund | ||||||||||||||||||||
Year Ended September 30, 2008 | $ | 9.71 | 0.33 | (a) | (0.33 | ) | — | (0.33 | ) | (0.02 | ) | (0.35 | ) | |||||||
Year Ended September 30, 2007 | $ | 9.79 | 0.35 | (a) | (0.05 | ) | 0.30 | (0.35 | ) | (0.03 | ) | (0.38 | ) | |||||||
Year Ended September 30, 2006 | $ | 9.85 | 0.39 | (0.02 | ) | 0.37 | (0.37 | ) | (0.06 | ) | (0.43 | ) | ||||||||
Year Ended September 30, 2005 | $ | 10.08 | 0.35 | (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 | ) | ||||||||
| * | 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) | Per share net investment income (loss) has been calculated using the average daily shares method. |
| (b) | Amount is less than $0.005. |
See accompanying notes to the financial statements.
126
| Ratios/Supplementary Data | |||||||||||||||||||
Net Asset Value, End of Period | Total Return (excludes sales charge) | Net Assets, End of Period (000) | Ratio of net expenses to average net assets | Ratio of net investment income to average net assets | Ratio of expenses to average net assets* | Portfolio turnover rate** | |||||||||||||
|
|
| ||||||||||||||||||
| $ | 10.03 | 5.30 | % | $ | 9,654 | 0.92 | % | 4.08 | % | 1.29 | % | 116.07 | % | ||||||
| $ | 9.93 | 4.78 | % | $ | 9,050 | 0.93 | % | 4.27 | % | 1.30 | % | 85.83 | % | ||||||
| $ | 9.89 | 3.08 | % | $ | 9,748 | 0.92 | % | 4.21 | % | 1.29 | % | 127.13 | % | ||||||
| $ | 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 | % | ||||||
| $ | 9.88 | 2.06 | % | $ | 8,700 | 0.91 | % | 4.24 | % | 1.28 | % | 190.15 | % | ||||||
| $ | 10.12 | 4.51 | % | $ | 8,403 | 0.93 | % | 4.37 | % | 1.30 | % | 222.24 | % | ||||||
| $ | 10.12 | 2.96 | % | $ | 6,407 | 0.93 | % | 4.16 | % | 1.29 | % | 226.36 | % | ||||||
| $ | 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 | % | ||||||
|
|
| ||||||||||||||||||
| $ | 9.88 | 1.34 | % | $ | 5,510 | 0.89 | % | 3.13 | % | 1.34 | % | 54.22 | % | ||||||
| $ | 10.06 | 2.66 | % | $ | 4,630 | 0.90 | % | 3.19 | % | 1.35 | % | 69.73 | % | ||||||
| $ | 10.12 | 3.67 | % | $ | 2,729 | 0.91 | % | 3.02 | % | 1.37 | % | 64.55 | % | ||||||
| $ | 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 | % | ||||||
|
|
| ||||||||||||||||||
| $ | 10.04 | 1.84 | % | $ | 4,389 | 0.79 | % | 3.01 | % | 1.34 | % | 108.13 | % | ||||||
| $ | 10.15 | 3.38 | % | $ | 2,429 | 0.84 | % | 3.05 | % | 1.39 | % | 136.09 | % | ||||||
| $ | 10.12 | 3.95 | % | $ | 1,966 | 0.85 | % | 2.89 | % | 1.41 | % | 219.80 | % | ||||||
| $ | 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 | % | ||||||
|
|
| ||||||||||||||||||
| $ | 10.09 | 1.42 | % | $ | 20,971 | 0.89 | % | 3.34 | % | 1.29 | % | 82.02 | % | ||||||
| $ | 10.33 | 3.07 | % | $ | 19,668 | 0.91 | % | 3.40 | % | 1.31 | % | 106.16 | % | ||||||
| $ | 10.38 | 3.58 | % | $ | 19,163 | 0.90 | % | 3.45 | % | 1.30 | % | 94.95 | % | ||||||
| $ | 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 | % | ||||||
|
|
| ||||||||||||||||||
| $ | 9.95 | 0.94 | % | $ | 7,481 | 0.96 | % | 3.28 | % | 1.36 | % | 127.76 | % | ||||||
| $ | 10.28 | 2.91 | % | $ | 3,769 | 0.93 | % | 3.34 | % | 1.35 | % | 68.69 | % | ||||||
| $ | 10.35 | 3.27 | % | $ | 4,001 | 0.93 | % | 3.30 | % | 1.35 | % | 80.24 | % | ||||||
| $ | 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 | % | ||||||
|
|
| ||||||||||||||||||
| $ | 11.11 | 1.79 | % | $ | 9,683 | 0.89 | % | 3.25 | % | 1.29 | % | 53.28 | % | ||||||
| $ | 11.32 | 3.05 | % | $ | 8,802 | 0.91 | % | 3.39 | % | 1.31 | % | 85.36 | % | ||||||
| $ | 11.39 | 3.23 | % | $ | 11,877 | 0.90 | % | 3.55 | % | 1.30 | % | 76.53 | % | ||||||
| $ | 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 | % | ||||||
|
|
| ||||||||||||||||||
| $ | 9.36 | (0.08 | )% | $ | 16,138 | 0.91 | % | 3.41 | % | 0.91 | % | 39.13 | % | ||||||
| $ | 9.71 | 3.12 | % | $ | 16,897 | 0.91 | % | 3.61 | % | 0.91 | % | 49.60 | % | ||||||
| $ | 9.79 | 3.85 | % | $ | 15,773 | 0.90 | % | 3.80 | % | 0.90 | % | 50.14 | % | ||||||
| $ | 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 | % | ||||||
127
BB&T Funds
Financial Highlights, Class A Shares
Selected data for a share of beneficial interest outstanding throughout the periods indicated.
| Investment Activities | Distributions | ||||||||||||||||||||
| Net Asset Value, Beginning of Period | Net investment income | Net realized/ unrealized gains (losses) on investments | Total from Investment Activities | Net investment income | Net realized gains on investments | Total Distributions | |||||||||||||||
National Tax-Free Money Market Fund | |||||||||||||||||||||
Year Ended September 30, 2008 | $ | 1.00 | 0.02 | (c) | — | (d) | 0.02 | (0.02 | ) | — | (0.02 | ) | |||||||||
Year Ended September 30, 2007 | $ | 1.00 | 0.03 | (c) | — | 0.03 | (0.03 | ) | — | (0.03 | ) | ||||||||||
August 1, 2006 to September 30, 2006 (e) | $ | 1.00 | — | (d) | — | — | (d) | — | (d) | — | — | (d) | |||||||||
Prime Money Market Fund | |||||||||||||||||||||
Year Ended September 30, 2008 | $ | 1.00 | 0.03 | (c) | — | (d) | 0.03 | (0.03 | ) | — | (0.03 | ) | |||||||||
Year Ended September 30, 2007 | $ | 1.00 | 0.04 | (c) | — | 0.04 | (0.04 | ) | — | (0.04 | ) | ||||||||||
Year Ended September 30, 2006 | $ | 1.00 | 0.04 | — | (d) | 0.04 | (0.04 | ) | — | (0.04 | ) | ||||||||||
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) | ||||||||
U.S. Treasury Money Market Fund | |||||||||||||||||||||
Year Ended September 30, 2008 | $ | 1.00 | 0.02 | (c) | — | (d) | 0.02 | (0.02 | ) | — | (0.02 | ) | |||||||||
Year Ended September 30, 2007 | $ | 1.00 | 0.04 | (c) | — | 0.04 | (0.04 | ) | — | (0.04 | ) | ||||||||||
Year Ended September 30, 2006 | $ | 1.00 | 0.04 | — | 0.04 | (0.04 | ) | — | (0.04 | ) | |||||||||||
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) | |||||||||
Capital Manager Conservative Growth Fund*** | |||||||||||||||||||||
Year Ended September 30, 2008 | $ | 10.53 | 0.26 | (c) | (1.24 | ) | (0.98 | ) | (0.39 | ) | (0.73 | ) | (1.12 | ) | |||||||
Year Ended September 30, 2007 | $ | 9.96 | 0.34 | (c) | 0.53 | 0.87 | (0.30 | ) | — | (0.30 | ) | ||||||||||
Year Ended September 30, 2006 | $ | 9.76 | 0.31 | (c) | 0.22 | 0.53 | (0.33 | ) | — | (0.33 | ) | ||||||||||
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 | ) | ||||||||||
Capital Manager Moderate Growth Fund*** | |||||||||||||||||||||
Year Ended September 30, 2008 | $ | 10.94 | 0.17 | (c) | (1.86 | ) | (1.69 | ) | (0.35 | ) | (1.13 | ) | (1.48 | ) | |||||||
Year Ended September 30, 2007 | $ | 10.22 | 0.29 | (c) | 0.87 | 1.16 | (0.22 | ) | (0.22 | ) | (0.44 | ) | |||||||||
Year Ended September 30, 2006 | $ | 9.79 | 0.24 | (c) | 0.45 | 0.69 | (0.26 | ) | — | (0.26 | ) | ||||||||||
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 | ) | ||||||||||
Capital Manager Growth Fund*** | |||||||||||||||||||||
Year Ended September 30, 2008 | $ | 11.13 | 0.11 | (c) | (2.21 | ) | (2.10 | ) | (0.33 | ) | (1.37 | ) | (1.70 | ) | |||||||
Year Ended September 30, 2007 | $ | 10.23 | 0.25 | (c) | 1.08 | 1.33 | (0.16 | ) | (0.27 | ) | (0.43 | ) | |||||||||
Year Ended September 30, 2006 | $ | 9.68 | 0.20 | (c) | 0.56 | 0.76 | (0.21 | ) | — | (0.21 | ) | ||||||||||
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 | ) | ||||||||||
Capital Manager Equity Fund*** | |||||||||||||||||||||
Year Ended September 30, 2008 | $ | 12.26 | 0.04 | (c) | (2.76 | ) | (2.72 | ) | (0.32 | ) | (1.81 | ) | (2.13 | ) | |||||||
Year Ended September 30, 2007 | $ | 11.57 | 0.21 | (c) | 1.43 | 1.64 | (0.10 | ) | (0.85 | ) | (0.95 | ) | |||||||||
Year Ended September 30, 2006 | $ | 10.95 | 0.17 | (c) | 0.83 | 1.00 | (0.19 | ) | (0.19 | ) | (0.38 | ) | |||||||||
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 | ) | |||||||||
| * | 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. |
| *** | The expense ratios exclude the impact of fees/expenses paid by each underlying fund. |
| (a) | Not annualized for periods less than one year. |
| (b) | Annualized for periods less than one year. |
| (c) | Per share net investment income (loss) has been calculated using the average daily shares method. |
| (d) | Amount is less than $0.005. |
| (e) | Period from commencement of operations. |
See accompanying notes to the financial statements.
128
| Ratios/Supplementary Data | |||||||||||||||||||
Net Asset Value, End of Period | Total Return (excludes sales charge) (a) | Net Assets, End of Period (000) | Ratio of net expenses to average net assets (b) | Ratio of net investment income to average net assets (b) | Ratio of expenses to average net assets*(b) | Portfolio turnover rate** | |||||||||||||
|
|
| ||||||||||||||||||
|
$ |
1.00 | 2.11 | % | $ | 4 | 0.66 | % | 2.48 | % | 0.96 | % | — | |||||||
|
$ |
1.00 | 3.08 | % | $ | 526 | 0.66 | % | 3.06 | % | 0.97 | % | — | |||||||
|
$ |
1.00 | 0.51 | % | $ | 1 | 0.62 | % | 2.96 | % | 1.26 | % | — | |||||||
|
|
| ||||||||||||||||||
|
$ |
1.00 | 2.86 | % | $ | 763,152 | 0.96 | % | 2.79 | % | 1.08 | % | — | |||||||
|
$ |
1.00 | 4.51 | % | $ | 745,381 | 0.98 | % | 4.42 | % | 1.10 | % | — | |||||||
|
$ |
1.00 | 3.86 | % | $ | 636,327 | 0.98 | % | 3.83 | % | 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 | 1.75 | % | $ | 485,031 | 0.93 | % | 1.72 | % | 1.08 | % | — | |||||||
|
$ |
1.00 | 4.20 | % | $ | 310,413 | 0.97 | % | 4.07 | % | 1.11 | % | — | |||||||
|
$ |
1.00 | 3.64 | % | $ | 167,900 | 0.96 | % | 3.63 | % | 1.09 | % | — | |||||||
|
$ |
1.00 | 1.69 | % | $ | 114,260 | 0.89 | % | 1.66 | % | 1.14 | % | — | |||||||
|
$ |
1.00 | 0.31 | % | $ | 122,500 | 0.79 | % | 0.31 | % | 1.21 | % | — | |||||||
|
|
| ||||||||||||||||||
|
$ |
8.43 | (10.33 | )% | $ | 7,573 | 0.35 | % | 2.72 | % | 0.85 | % | 39.99 | % | ||||||
|
$ |
10.53 | 8.86 | % | $ | 9,781 | 0.35 | % | 3.28 | % | 0.91 | % | 29.58 | % | ||||||
|
$ |
9.96 | 5.54 | % | $ | 9,365 | 0.33 | % | 3.12 | % | 0.95 | % | 5.69 | % | ||||||
|
$ |
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 | % | ||||||
|
|
| ||||||||||||||||||
|
$ |
7.77 | (17.44 | )% | $ | 27,775 | 0.35 | % | 1.82 | % | 0.85 | % | 63.63 | % | ||||||
|
$ |
10.94 | 11.48 | % | $ | 38,081 | 0.36 | % | 2.68 | % | 0.92 | % | 40.05 | % | ||||||
|
$ |
10.22 | 7.10 | % | $ | 33,472 | 0.35 | % | 2.44 | % | 0.97 | % | 7.33 | % | ||||||
|
$ |
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 | % | ||||||
|
|
| ||||||||||||||||||
|
$ |
7.33 | (21.65 | )% | $ | 18,321 | 0.35 | % | 1.23 | % | 0.85 | % | 77.54 | % | ||||||
|
$ |
11.13 | 13.19 | % | $ | 26,189 | 0.36 | % | 2.33 | % | 0.93 | % | 44.48 | % | ||||||
|
$ |
10.23 | 7.97 | % | $ | 22,801 | 0.36 | % | 2.01 | % | 0.98 | % | 6.26 | % | ||||||
|
$ |
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 | % | ||||||
|
|
| ||||||||||||||||||
|
$ |
7.41 | (26.23 | )% | $ | 5,680 | 0.38 | % | 0.44 | % | 0.88 | % | 67.40 | % | ||||||
|
$ |
12.26 | 14.79 | % | $ | 9,384 | 0.37 | % | 1.77 | % | 0.93 | % | 48.80 | % | ||||||
|
$ |
11.57 | 9.39 | % | $ | 7,762 | 0.36 | % | 1.53 | % | 0.97 | % | 1.48 | % | ||||||
|
$ |
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 | % | ||||||
129
BB&T Funds
Financial Highlights, Class B Shares
Selected data for a share of beneficial interest outstanding throughout the periods indicated.
| Investment Activities | Distributions | ||||||||||||||||||||
| 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 Distributions | |||||||||||||||
Large Cap Fund | |||||||||||||||||||||
Year Ended September 30, 2008 | $ | 18.90 | 0.04 | (c) | (5.05 | ) | (5.01 | ) | (0.05 | ) | (2.73 | ) | (2.78 | ) | |||||||
Year Ended September 30, 2007 | $ | 20.15 | 0.09 | (c) | 2.12 | 2.21 | (0.11 | ) | (3.35 | ) | (3.46 | ) | |||||||||
Year Ended September 30, 2006 | $ | 19.31 | 0.16 | (c) | 2.27 | 2.43 | (0.15 | ) | (1.44 | ) | (1.59 | ) | |||||||||
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 | ) | |||||||||||
Mid Cap Value Fund | |||||||||||||||||||||
Year Ended September 30, 2008 | $ | 14.55 | (0.07 | )(c) | (2.98 | ) | (3.05 | ) | — | (1.36 | ) | (1.36 | ) | ||||||||
Year Ended September 30, 2007 | $ | 13.23 | (0.07 | )(c) | 2.08 | 2.01 | — | (d) | (0.69 | ) | (0.69 | ) | |||||||||
Year Ended September 30, 2006 | $ | 13.16 | (0.07 | )(c) | 1.59 | 1.52 | — | (d) | (1.45 | ) | (1.45 | ) | |||||||||
Year Ended September 30, 2005 | $ | 15.30 | — | (c)(d) | 3.02 | 3.02 | (0.07 | ) | (5.09 | ) | (5.16 | ) | |||||||||
Year Ended September 30, 2004 | $ | 12.91 | 0.07 | (c) | 2.42 | 2.49 | (0.10 | ) | — | (0.10 | ) | ||||||||||
Mid Cap Growth Fund | |||||||||||||||||||||
Year Ended September 30, 2008 | $ | 14.06 | (0.16 | )(c) | (3.56 | ) | (3.72 | ) | — | (1.03 | ) | (1.03 | ) | ||||||||
Year Ended September 30, 2007 | $ | 11.95 | (0.15 | )(c) | 3.91 | 3.76 | — | (1.65 | ) | (1.65 | ) | ||||||||||
Year Ended September 30, 2006 | $ | 13.47 | (0.11 | )(c) | 0.01 | (e) | (0.10 | ) | — | (1.42 | ) | (1.42 | ) | ||||||||
Year Ended September 30, 2005 | $ | 10.70 | (0.17 | )(c) | 3.08 | 2.91 | — | (0.14 | ) | (0.14 | ) | ||||||||||
Year Ended September 30, 2004 | $ | 9.68 | (0.16 | ) | 1.18 | 1.02 | — | — | — | ||||||||||||
Small Cap Fund | |||||||||||||||||||||
Year Ended September 30, 2008 | $ | 14.43 | (0.12 | )(c) | (2.25 | ) | (2.37 | ) | — | (1.20 | ) | (1.20 | ) | ||||||||
Year Ended September 30, 2007 | $ | 14.73 | (0.05 | )(c) | 0.72 | 0.67 | (0.06 | ) | (0.91 | ) | (0.97 | ) | |||||||||
Year Ended September 30, 2006 | $ | 16.11 | (0.12 | )(c) | 1.05 | 0.93 | (0.01 | ) | (2.30 | ) | (2.31 | ) | |||||||||
Year Ended September 30, 2005 | $ | 14.06 | — | (c)(d) | 2.58 | 2.58 | (0.11 | ) | (0.42 | ) | (0.53 | ) | |||||||||
Year Ended September 30, 2004 | $ | 11.40 | (0.10 | )(c) | 2.88 | 2.78 | — | (0.12 | ) | (0.12 | ) | ||||||||||
International Equity Fund | |||||||||||||||||||||
Year Ended September 30, 2008 | $ | 7.65 | 0.02 | (c) | (2.16 | ) | (2.14 | ) | (0.01 | ) | (0.75 | ) | (0.76 | ) | |||||||
Year Ended September 30, 2007 | $ | 10.46 | 0.03 | (c) | 1.72 | 1.75 | (0.04 | ) | (4.52 | ) | (4.56 | ) | |||||||||
Year Ended September 30, 2006 | $ | 9.09 | 0.06 | (c) | 1.42 | 1.48 | (0.11 | ) | — | (0.11 | ) | ||||||||||
Year Ended September 30, 2005 | $ | 7.74 | 0.03 | (c) | 1.38 | 1.41 | (0.06 | ) | — | (0.06 | ) | ||||||||||
Year Ended September 30, 2004 | $ | 6.57 | 0.02 | (c) | 1.19 | 1.21 | (0.04 | ) | — | (0.04 | ) | ||||||||||
Special Opportunities Equity Fund | |||||||||||||||||||||
Year Ended September 30, 2008 | $ | 17.63 | (0.21 | )(c) | (2.02 | ) | (2.23 | ) | — | (0.75 | ) | (0.75 | ) | ||||||||
Year Ended September 30, 2007 | $ | 16.00 | (0.13 | )(c) | 3.36 | 3.23 | — | (1.60 | ) | (1.60 | ) | ||||||||||
Year Ended September 30, 2006 | $ | 15.29 | (0.16 | ) | 1.66 | 1.50 | — | (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 | ) | ||||||||||
Equity Income Fund | |||||||||||||||||||||
Year Ended September 30, 2008 | $ | 14.99 | 0.32 | (c) | (2.20 | ) | (1.88 | ) | (0.22 | ) | (0.58 | ) | (0.80 | ) | |||||||
Year Ended September 30, 2007 | $ | 13.33 | 0.25 | (c) | 2.31 | 2.56 | (0.22 | ) | (0.68 | ) | (0.90 | ) | |||||||||
Year Ended September 30, 2006 | $ | 12.08 | 0.19 | 1.56 | 1.75 | (0.23 | ) | (0.27 | ) | (0.50 | ) | ||||||||||
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 (f) | $ | 10.00 | 0.03 | (c) | 0.34 | 0.37 | (0.03 | ) | — | (0.03 | ) | ||||||||||
Intermediate U.S. Government Fund | |||||||||||||||||||||
Year Ended September 30, 2008 | $ | 9.90 | 0.34 | (c) | 0.10 | 0.44 | (0.34 | ) | — | (0.34 | ) | ||||||||||
Year Ended September 30, 2007 | $ | 9.86 | 0.35 | (c) | 0.04 | 0.39 | (0.35 | ) | — | (0.35 | ) | ||||||||||
Year Ended September 30, 2006 | $ | 9.98 | 0.34 | (c) | (0.12 | ) | 0.22 | (0.34 | ) | — | (0.34 | ) | |||||||||
Year Ended September 30, 2005 | $ | 10.20 | 0.27 | (c) | (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 | ) | |||||||||
| * | 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) | Not annualized for periods less than one year. |
| (b) | Annualized for periods less than one year. |
| (c) | Per share net investment income (loss) has been calculated using the average daily shares method. |
| (d) | Amount is less than $0.005. |
| (e) | The amount shown for a share outstanding throughout the period does not accord with the change in aggregate gains and losses in the portfolio of securities during the period because of the timing of sales and purchases of Fund shares in relation to fluctuating market values during the period. |
| (f) | Period from commencement of operations. |
See accompanying notes to the financial statements.
130
| Ratios/Supplementary Data | |||||||||||||||||||
Net Asset | Total Return (excludes sales charge) (a) | Net Assets, End of Period (000) | Ratio of net expenses to average net assets (b) | Ratio of net investment income (loss) to average net assets (b) | Ratio of expenses to average net assets*(b) | Portfolio turnover rate**(a) | |||||||||||||
| $ | 11.11 | (29.98 | )% | $ | 7,866 | 1.89 | % | 0.28 | % | 1.93 | % | 38.43 | % | ||||||
| $ | 18.90 | 11.67 | % | $ | 17,796 | 1.91 | % | 0.50 | % | 1.97 | % | 68.60 | % | ||||||
| $ | 20.15 | 13.45 | % | $ | 14,808 | 1.88 | % | 0.85 | % | 1.93 | % | 34.83 | % | ||||||
| $ | 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 | % | ||||||
| $ | 10.14 | (22.60 | )% | $ | 4,136 | 1.89 | % | (0.58 | )% | 1.93 | % | 65.74 | % | ||||||
| $ | 14.55 | 15.58 | % | $ | 6,112 | 1.91 | % | (0.48 | )% | 1.95 | % | 58.59 | % | ||||||
| $ | 13.23 | 12.38 | % | $ | 5,391 | 1.89 | % | (0.53 | )% | 1.93 | % | 53.92 | % | ||||||
| $ | 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 | % | ||||||
| $ | 9.31 | (28.79 | )% | $ | 2,093 | 1.90 | % | (1.32 | )% | 1.94 | % | 218.03 | % | ||||||
| $ | 14.06 | 35.13 | % | $ | 2,697 | 1.92 | % | (1.24 | )% | 1.96 | % | 134.95 | % | ||||||
| $ | 11.95 | (1.23 | )% | $ | 2,377 | 1.89 | % | (0.83 | )% | 1.94 | % | 140.90 | % | ||||||
| $ | 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 | % | ||||||
| $ | 10.86 | (17.42 | )% | $ | 1,960 | 2.03 | % | (1.00 | )% | 2.23 | % | 94.93 | % | ||||||
| $ | 14.43 | 4.37 | % | $ | 3,393 | 2.06 | % | (0.31 | )% | 2.26 | % | 46.54 | % | ||||||
| $ | 14.73 | 6.19 | % | $ | 4,092 | 2.04 | % | (0.79 | )% | 2.28 | % | 43.25 | % | ||||||
| $ | 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 | % | ||||||
| $ | 4.75 | (31.33 | )% | $ | 1,281 | 2.31 | % | 0.38 | % | 2.49 | % | 112.65 | % | ||||||
| $ | 7.65 | 19.28 | % | $ | 2,041 | 2.12 | % | 0.26 | % | 2.25 | % | 129.80 | % | ||||||
| $ | 10.46 | 16.27 | % | $ | 1,819 | 2.15 | % | 0.64 | % | 2.25 | % | 36.22 | % | ||||||
| $ | 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 | % | ||||||
| $ | 14.65 | (13.28 | )% | $ | 26,347 | 1.99 | % | (1.22 | )% | 1.99 | % | 25.80 | % | ||||||
| $ | 17.63 | 21.33 | % | $ | 29,931 | 2.03 | % | (0.79 | )% | 2.03 | % | 49.43 | % | ||||||
| $ | 16.00 | 10.35 | % | $ | 22,901 | 2.03 | % | (1.01 | )% | 2.03 | % | 58.01 | % | ||||||
| $ | 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 | % | ||||||
| $ | 12.31 | (13.14 | )% | $ | 15,176 | 1.89 | % | 2.35 | % | 1.89 | % | 30.01 | % | ||||||
| $ | 14.99 | 19.97 | % | $ | 14,796 | 1.94 | % | 1.78 | % | 1.94 | % | 37.85 | % | ||||||
| $ | 13.33 | 14.84 | % | $ | 9,592 | 1.95 | % | 1.52 | % | 1.95 | % | 45.38 | % | ||||||
| $ | 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 | % | ||||||
| $ | 10.00 | 4.52 | % | $ | 3,070 | 1.67 | % | 3.34 | % | 1.79 | % | 116.07 | % | ||||||
| $ | 9.90 | 4.01 | % | $ | 3,006 | 1.68 | % | 3.52 | % | 1.80 | % | 85.83 | % | ||||||
| $ | 9.86 | 2.32 | % | $ | 4,020 | 1.68 | % | 3.48 | % | 1.79 | % | 127.13 | % | ||||||
| $ | 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 | % | ||||||
131
BB&T Funds
Financial Highlights, Class B Shares
Selected data for a share of beneficial interest outstanding throughout the periods indicated.
| Investment Activities | Distributions | ||||||||||||||||||||
| 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 Distributions | |||||||||||||||
Total Return Bond Fund | |||||||||||||||||||||
Year Ended September 30, 2008 | $ | 10.13 | 0.36 | (c) | (0.22 | ) | 0.14 | (0.38 | ) | — | (0.38 | ) | |||||||||
Year Ended September 30, 2007 | $ | 10.13 | 0.37 | (c) | — | 0.37 | (0.37 | ) | — | (0.37 | ) | ||||||||||
Year Ended September 30, 2006 | $ | 10.32 | 0.34 | (c) | (0.12 | ) | 0.22 | (0.36 | ) | (0.05 | ) | (0.41 | ) | ||||||||
Year Ended September 30, 2005 | $ | 10.59 | 0.30 | (c) | (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 | ) | ||||||||||
National Tax-Free Money Market Fund | |||||||||||||||||||||
Year Ended September 30, 2008 | $ | 1.00 | 0.02 | (c) | (0.01 | )(d) | 0.01 | (0.01 | ) | — | (0.01 | ) | |||||||||
Year Ended September 30, 2007 | $ | 1.00 | 0.02 | (c) | — | 0.02 | (0.02 | ) | — | (0.02 | ) | ||||||||||
August 1, 2006 to September 30, 2006 (e) | $ | 1.00 | — | (d) | — | — | (d) | — | (d) | — | — | (d) | |||||||||
Prime Money Market Fund | |||||||||||||||||||||
Year Ended September 30, 2008 | $ | 1.00 | 0.02 | (c) | — | (d) | 0.02 | (0.02 | ) | — | (0.02 | ) | |||||||||
Year Ended September 30, 2007 | $ | 1.00 | 0.04 | (c) | — | 0.04 | (0.04 | ) | — | (0.04 | ) | ||||||||||
Year Ended September 30, 2006 | $ | 1.00 | 0.03 | — | (d) | 0.03 | (0.03 | ) | — | (0.03 | ) | ||||||||||
Year Ended September 30, 2005 | $ | 1.00 | 0.01 | — | (d) | 0.01 | (0.01 | ) | — | (0.01 | ) | ||||||||||
Year Ended September 30, 2004 | $ | 1.00 | — | (d) | — | (d) | — | (d) | — | (d) | — | — | (d) | ||||||||
U.S. Treasury Money Market Fund | |||||||||||||||||||||
Year Ended September 30, 2008 | $ | 1.00 | 0.01 | (c) | — | (d) | 0.01 | (0.01 | ) | — | (0.01 | ) | |||||||||
Year Ended September 30, 2007 | $ | 1.00 | 0.04 | (c) | — | 0.04 | (0.04 | ) | — | (0.04 | ) | ||||||||||
Year Ended September 30, 2006 | $ | 1.00 | 0.03 | — | 0.03 | (0.03 | ) | — | (0.03 | ) | |||||||||||
Year Ended September 30, 2005 | $ | 1.00 | 0.01 | — | 0.01 | (0.01 | ) | — | (0.01 | ) | |||||||||||
Year Ended September 30, 2004 | $ | 1.00 | — | (d) | — | — | (d) | — | (d) | — | — | (d) | |||||||||
Capital Manager Conservative Growth Fund*** | |||||||||||||||||||||
Year Ended September 30, 2008 | $ | 10.54 | 0.19 | (c) | (1.25 | ) | (1.06 | ) | (0.32 | ) | (0.73 | ) | (1.05 | ) | |||||||
Year Ended September 30, 2007 | $ | 9.96 | 0.27 | (c) | 0.54 | 0.81 | (0.23 | ) | — | (0.23 | ) | ||||||||||
Year Ended September 30, 2006 | $ | 9.76 | 0.23 | (c) | 0.23 | 0.46 | (0.26 | ) | — | (0.26 | ) | ||||||||||
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 | (c) | 0.45 | 0.54 | (0.09 | ) | — | (0.09 | ) | ||||||||||
Capital Manager Moderate Growth Fund*** | |||||||||||||||||||||
Year Ended September 30, 2008 | $ | 10.75 | 0.10 | (c) | (1.81 | ) | (1.71 | ) | (0.29 | ) | (1.13 | ) | (1.42 | ) | |||||||
Year Ended September 30, 2007 | $ | 10.05 | 0.21 | (c) | 0.85 | 1.06 | (0.14 | ) | (0.22 | ) | (0.36 | ) | |||||||||
Year Ended September 30, 2006 | $ | 9.64 | 0.17 | (c) | 0.42 | 0.59 | (0.18 | ) | — | (0.18 | ) | ||||||||||
Year Ended September 30, 2005 | $ | 8.86 | 0.09 | (c) | 0.77 | 0.86 | (0.08 | ) | — | (0.08 | ) | ||||||||||
Year Ended September 30, 2004 | $ | 8.15 | 0.02 | (c) | 0.71 | 0.73 | (0.02 | ) | — | (0.02 | ) | ||||||||||
Capital Manager Growth Fund*** | |||||||||||||||||||||
Year Ended September 30, 2008 | $ | 10.92 | 0.04 | (c) | (2.15 | ) | (2.11 | ) | (0.27 | ) | (1.37 | ) | (1.64 | ) | |||||||
Year Ended September 30, 2007 | $ | 10.05 | 0.18 | (c) | 1.04 | 1.22 | (0.08 | ) | (0.27 | ) | (0.35 | ) | |||||||||
Year Ended September 30, 2006 | $ | 9.51 | 0.12 | (c) | 0.56 | 0.68 | (0.14 | ) | — | (0.14 | ) | ||||||||||
Year Ended September 30, 2005 | $ | 8.55 | 0.05 | (c) | 0.95 | 1.00 | (0.04 | ) | — | (0.04 | ) | ||||||||||
Year Ended September 30, 2004 | $ | 7.70 | (0.02 | )(c) | 0.87 | 0.85 | — | — | — | ||||||||||||
Capital Manager Equity Fund*** | |||||||||||||||||||||
Year Ended September 30, 2008 | $ | 11.86 | (0.03 | )(c) | (2.65 | ) | (2.68 | ) | (0.28 | ) | (1.81 | ) | (2.09 | ) | |||||||
Year Ended September 30, 2007 | $ | 11.26 | 0.12 | (c) | 1.38 | 1.50 | (0.05 | ) | (0.85 | ) | (0.90 | ) | |||||||||
Year Ended September 30, 2006 | $ | 10.67 | 0.09 | (c) | 0.80 | 0.89 | (0.11 | ) | (0.19 | ) | (0.30 | ) | |||||||||
Year Ended September 30, 2005 | $ | 9.36 | 0.01 | (c) | 1.31 | 1.32 | (0.01 | ) | — | (0.01 | ) | ||||||||||
Year Ended September 30, 2004 | $ | 8.30 | (0.05 | )(c) | 1.11 | 1.06 | — | — | — | ||||||||||||
| * | 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. |
| *** | The expense ratios exclude the impact of fees/expenses paid by each underlying fund. |
| (a) | Not annualized for periods less than one year. |
| (b) | Annualized for periods less than one year. |
| (c) | Per share net investment income (loss) has been calculated using the average daily shares method. |
| (d) | Amount is less than $0.005. |
| (e) | Period from commencement of operations. |
See accompanying notes to the financial statements.
132
| Ratios/Supplementary Data | |||||||||||||||||||
Net Asset | Total Return (excludes sales charge) (a) | Net Assets, End of Period (000) | Ratio of net expenses to average net assets (b) | Ratio of net investment income (loss) to average net assets (b) | Ratio of expenses to average net assets*(b) | Portfolio turnover rate** | |||||||||||||
| $ | 9.89 | 1.31 | % | $ | 4,951 | 1.66 | % | 3.49 | % | 1.78 | % | 190.15 | % | ||||||
| $ | 10.13 | 3.73 | % | $ | 4,992 | 1.68 | % | 3.62 | % | 1.80 | % | 222.24 | % | ||||||
| $ | 10.13 | 2.27 | % | $ | 4,872 | 1.68 | % | 3.39 | % | 1.79 | % | 226.36 | % | ||||||
| $ | 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 | % | ||||||
|
|
| ||||||||||||||||||
| $ | 1.00 | 1.51 | % | $ | 1 | 1.27 | % | 1.51 | % | 1.27 | % | — | |||||||
| $ | 1.00 | 2.38 | % | $ | 1 | 1.33 | % | 2.36 | % | 1.38 | % | — | |||||||
| $ | 1.00 | 0.36 | % | $ | 1 | 1.39 | % | 2.19 | % | 1.78 | % | — | |||||||
| $ | 1.00 | 2.35 | % | $ | 1,767 | 1.46 | % | 2.26 | % | 1.58 | % | — | |||||||
| $ | 1.00 | 4.01 | % | $ | 1,629 | 1.48 | % | 3.92 | % | 1.60 | % | — | |||||||
| $ | 1.00 | 3.37 | % | $ | 2,256 | 1.48 | % | 3.34 | % | 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 | 1.28 | % | $ | 597 | 1.38 | % | 1.14 | % | 1.58 | % | — | |||||||
| $ | 1.00 | 3.72 | % | $ | 301 | 1.46 | % | 3.64 | % | 1.60 | % | — | |||||||
| $ | 1.00 | 3.12 | % | $ | 381 | 1.46 | % | 2.97 | % | 1.59 | % | — | |||||||
| $ | 1.00 | 1.09 | % | $ | 807 | 1.48 | % | 1.05 | % | 1.64 | % | — | |||||||
| $ | 1.00 | 0.05 | % | $ | 887 | 1.05 | % | 0.05 | % | 1.71 | % | — | |||||||
|
|
| ||||||||||||||||||
| $ | 8.43 | (11.09 | )% | $ | 4,081 | 1.10 | % | 1.98 | % | 1.35 | % | 39.99 | % | ||||||
| $ | 10.54 | 8.17 | % | $ | 4,779 | 1.10 | % | 2.60 | % | 1.41 | % | 29.58 | % | ||||||
| $ | 9.96 | 4.75 | % | $ | 4,968 | 1.08 | % | 2.37 | % | 1.45 | % | 5.69 | % | ||||||
| $ | 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 | % | ||||||
|
|
| ||||||||||||||||||
| $ | 7.62 | (17.99 | )% | $ | 15,305 | 1.10 | % | 1.07 | % | 1.35 | % | 63.63 | % | ||||||
| $ | 10.75 | 10.67 | % | $ | 21,791 | 1.11 | % | 1.96 | % | 1.42 | % | 40.05 | % | ||||||
| $ | 10.05 | 6.21 | % | $ | 21,610 | 1.10 | % | 1.70 | % | 1.47 | % | 7.33 | % | ||||||
| $ | 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 | % | ||||||
| $ | 7.17 | (22.32 | )% | $ | 13,306 | 1.10 | % | 0.47 | % | 1.35 | % | 77.54 | % | ||||||
| $ | 10.92 | 12.31 | % | $ | 20,286 | 1.11 | % | 1.71 | % | 1.43 | % | 44.48 | % | ||||||
| $ | 10.05 | 7.22 | % | $ | 19,366 | 1.11 | % | 1.27 | % | 1.48 | % | 6.26 | % | ||||||
| $ | 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 | % | ||||||
| $ | 7.09 | (26.69 | )% | $ | 5,406 | 1.13 | % | (0.31 | )% | 1.38 | % | 67.40 | % | ||||||
| $ | 11.86 | 13.88 | % | $ | 8,535 | 1.12 | % | 1.07 | % | 1.43 | % | 48.80 | % | ||||||
| $ | 11.26 | 8.51 | % | $ | 8,023 | 1.11 | % | 0.80 | % | 1.47 | % | 1.48 | % | ||||||
| $ | 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 | % | ||||||
133
BB&T Funds
Financial Highlights, Class C Shares
Selected data for a share of beneficial interest outstanding throughout the periods indicated.
| Investment Activities | Distributions | ||||||||||||||||||||
| 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 Distributions | |||||||||||||||
Large Cap Fund | |||||||||||||||||||||
Year Ended September 30, 2008 | $ | 18.87 | 0.04 | (c) | (5.05 | ) | (5.01 | ) | (0.05 | ) | (2.73 | ) | (2.78 | ) | |||||||
Year Ended September 30, 2007 | $ | 20.11 | 0.09 | (c) | 2.13 | 2.22 | (0.11 | ) | (3.35 | ) | (3.46 | ) | |||||||||
Year Ended September 30, 2006 | $ | 19.28 | 0.16 | (c) | 2.26 | 2.42 | (0.15 | ) | (1.44 | ) | (1.59 | ) | |||||||||
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 | ) | |||||||||||
Mid Cap Value Fund | |||||||||||||||||||||
Year Ended September 30, 2008 | $ | 14.55 | (0.07 | )(c) | (2.98 | ) | (3.05 | ) | — | (1.36 | ) | (1.36 | ) | ||||||||
Year Ended September 30, 2007 | $ | 13.23 | (0.07 | )(c) | 2.08 | 2.01 | — | (d) | (0.69 | ) | (0.69 | ) | |||||||||
Year Ended September 30, 2006 | $ | 13.16 | (0.07 | )(c) | 1.59 | 1.52 | — | (d) | (1.45 | ) | (1.45 | ) | |||||||||
Year Ended September 30, 2005 | $ | 15.30 | — | (c)(d) | 3.02 | 3.02 | (0.07 | ) | (5.09 | ) | (5.16 | ) | |||||||||
Year Ended September 30, 2004 | $ | 12.92 | 0.07 | (c) | 2.41 | 2.48 | (0.10 | ) | — | (0.10 | ) | ||||||||||
Mid Cap Growth Fund | |||||||||||||||||||||
Year Ended September 30, 2008 | $ | 14.08 | (0.16 | )(c) | (3.57 | ) | (3.73 | ) | — | (1.03 | ) | (1.03 | ) | ||||||||
Year Ended September 30, 2007 | $ | 11.96 | (0.15 | )(c) | 3.92 | 3.77 | — | (1.65 | ) | (1.65 | ) | ||||||||||
Year Ended September 30, 2006 | $ | 13.47 | (0.09 | )(c) | — | (d) | (0.09 | ) | — | (1.42 | ) | (1.42 | ) | ||||||||
Year Ended September 30, 2005 | $ | 10.70 | (0.17 | )(c) | 3.08 | 2.91 | — | (0.14 | ) | (0.14 | ) | ||||||||||
Year Ended September 30, 2004 | $ | 9.69 | (0.16 | ) | 1.17 | 1.01 | — | — | — | ||||||||||||
Small Cap Fund | |||||||||||||||||||||
Year Ended September 30, 2008 | $ | 14.41 | (0.12 | )(c) | (2.25 | ) | (2.37 | ) | — | (1.20 | ) | (1.20 | ) | ||||||||
Year Ended September 30, 2007 | $ | 14.71 | (0.06 | )(c) | 0.73 | 0.67 | (0.06 | ) | (0.91 | ) | (0.97 | ) | |||||||||
Year Ended September 30, 2006 | $ | 16.10 | (0.11 | )(c) | 1.03 | 0.92 | (0.01 | ) | (2.30 | ) | (2.31 | ) | |||||||||
Year Ended September 30, 2005 | $ | 14.06 | (0.02 | )(c) | 2.60 | 2.58 | (0.12 | ) | (0.42 | ) | (0.54 | ) | |||||||||
Year Ended September 30, 2004 | $ | 11.40 | (0.12 | )(c) | 2.90 | 2.78 | — | (0.12 | ) | (0.12 | ) | ||||||||||
International Equity Fund | |||||||||||||||||||||
Year Ended September 30, 2008 | $ | 7.62 | 0.03 | (c) | (2.16 | ) | (2.13 | ) | (0.01 | ) | (0.75 | ) | (0.76 | ) | |||||||
Year Ended September 30, 2007 | $ | 10.44 | 0.01 | (c) | 1.73 | 1.74 | (0.04 | ) | (4.52 | ) | (4.56 | ) | |||||||||
Year Ended September 30, 2006 | $ | 9.07 | 0.05 | (c) | 1.42 | 1.47 | (0.10 | ) | — | (0.10 | ) | ||||||||||
Year Ended September 30, 2005 | $ | 7.74 | 0.06 | (c) | 1.36 | 1.42 | (0.09 | ) | — | (0.09 | ) | ||||||||||
Year Ended September 30, 2004 | $ | 6.58 | — | (c) | 1.20 | 1.20 | (0.04 | ) | — | (0.04 | ) | ||||||||||
Special Opportunities Equity Fund | |||||||||||||||||||||
Year Ended September 30, 2008 | $ | 17.64 | (0.21 | )(c) | (2.02 | ) | (2.23 | ) | — | (0.75 | ) | (0.75 | ) | ||||||||
Year Ended September 30, 2007 | $ | 16.01 | (0.13 | )(c) | 3.36 | 3.23 | — | (1.60 | ) | (1.60 | ) | ||||||||||
Year Ended September 30, 2006 | $ | 15.30 | (0.14 | ) | 1.64 | 1.50 | — | (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 | ) | ||||||||||
Equity Income Fund | |||||||||||||||||||||
Year Ended September 30, 2008 | $ | 14.98 | 0.33 | (c) | (2.21 | ) | (1.88 | ) | (0.22 | ) | (0.58 | ) | (0.80 | ) | |||||||
Year Ended September 30, 2007 | $ | 13.32 | 0.26 | (c) | 2.30 | 2.56 | (0.22 | ) | (0.68 | ) | (0.90 | ) | |||||||||
Year Ended September 30, 2006 | $ | 12.07 | 0.19 | 1.56 | 1.75 | (0.23 | ) | (0.27 | ) | (0.50 | ) | ||||||||||
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 (e) | $ | 10.00 | 0.03 | (c) | 0.34 | 0.37 | (0.03 | ) | — | (0.03 | ) | ||||||||||
Intermediate U.S. Government Fund | |||||||||||||||||||||
Year Ended September 30, 2008 | $ | 9.90 | 0.34 | (c) | 0.12 | 0.46 | (0.35 | ) | — | (0.35 | ) | ||||||||||
Year Ended September 30, 2007 | $ | 9.86 | 0.35 | (c) | 0.04 | 0.39 | (0.35 | ) | — | (0.35 | ) | ||||||||||
Year Ended September 30, 2006 | $ | 9.98 | 0.34 | (c) | (0.12 | ) | 0.22 | (0.34 | ) | — | (0.34 | ) | |||||||||
Year Ended September 30, 2005 | $ | 10.20 | 0.27 | (c) | (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 | ) | |||||||||
| * | 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) | Not annualized for periods less than one year. |
| (b) | Annualized for periods less than one year. |
| (c) | Per share net investment income (loss) has been calculated using the average daily shares method. |
| (d) | Amount is less than $0.005. |
| (e) | Period from commencement of operations. |
See accompanying notes to the financial statements.
134
| Ratios/Supplementary Data | |||||||||||||||||||
Net Asset | Total Return (excludes sales charge) (a) | Net Assets, End of Period (000) | Ratio of net expenses to average net assets (b) | Ratio of net investment income (loss) to average net assets (b) | Ratio of expenses to average net assets*(b) | Portfolio turnover rate**(a) | |||||||||||||
| $ | 11.08 | (30.00 | )% | $ | 143 | 1.89 | % | 0.28 | % | 1.94 | % | 38.43 | % | ||||||
| $ | 18.87 | 11.76 | % | $ | 239 | 1.91 | % | 0.50 | % | 1.97 | % | 68.60 | % | ||||||
| $ | 20.11 | 13.42 | % | $ | 161 | 1.88 | % | 0.82 | % | 1.94 | % | 34.83 | % | ||||||
| $ | 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 | % | ||||||
| $ | 10.14 | (22.59 | )% | $ | 328 | 1.89 | % | (0.60 | )% | 1.93 | % | 65.74 | % | ||||||
| $ | 14.55 | 15.60 | % | $ | 1,126 | 1.91 | % | (0.49 | )% | 1.95 | % | 58.59 | % | ||||||
| $ | 13.23 | 12.38 | % | $ | 743 | 1.89 | % | (0.53 | )% | 1.93 | % | 53.92 | % | ||||||
| $ | 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 | % | ||||||
| $ | 9.32 | (28.82 | )% | $ | 28 | 1.90 | % | (1.35 | )% | 1.94 | % | 218.03 | % | ||||||
| $ | 14.08 | 35.19 | % | $ | 46 | 1.92 | % | (1.23 | )% | 1.96 | % | 134.95 | % | ||||||
| $ | 11.96 | (1.15 | )% | $ | 33 | 1.88 | % | (0.70 | )% | 1.93 | % | 140.90 | % | ||||||
| $ | 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 | % | ||||||
| $ | 10.84 | (17.44 | )% | $ | 12 | 2.03 | % | (0.98 | )% | 2.23 | % | 94.93 | % | ||||||
| $ | 14.41 | 4.37 | % | $ | 26 | 2.06 | % | (0.41 | )% | 2.26 | % | 46.54 | % | ||||||
| $ | 14.71 | 6.17 | % | $ | 20 | 2.03 | % | (0.76 | )% | 2.27 | % | 43.25 | % | ||||||
| $ | 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 | % | ||||||
| $ | 4.73 | (31.30 | )% | $ | 172 | 2.31 | % | 0.48 | % | 2.50 | % | 112.65 | % | ||||||
| $ | 7.62 | 19.28 | % | $ | 244 | 2.13 | % | 0.12 | % | 2.26 | % | 129.80 | % | ||||||
| $ | 10.44 | 16.26 | % | $ | 188 | 2.15 | % | 0.47 | % | 2.25 | % | 36.22 | % | ||||||
| $ | 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 | % | ||||||
| $ | 14.66 | (13.27 | )% | $ | 50,230 | 1.99 | % | (1.23 | )% | 1.99 | % | 25.80 | % | ||||||
| $ | 17.64 | 21.32 | % | $ | 50,577 | 2.03 | % | (0.79 | )% | 2.03 | % | 49.43 | % | ||||||
| $ | 16.01 | 10.34 | % | $ | 34,418 | 2.03 | % | (1.02 | )% | 2.03 | % | 58.01 | % | ||||||
| $ | 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 | % | ||||||
| $ | 12.30 | (13.07 | )% | $ | 32,637 | 1.89 | % | 2.39 | % | 1.89 | % | 30.01 | % | ||||||
| $ | 14.98 | 19.93 | % | $ | 26,044 | 1.94 | % | 1.79 | % | 1.94 | % | 37.85 | % | ||||||
| $ | 13.32 | 14.85 | % | $ | 14,261 | 1.95 | % | 1.52 | % | 1.95 | % | 45.38 | % | ||||||
| $ | 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 | % | ||||||
| $ | 10.01 | 4.62 | % | $ | 176 | 1.67 | % | 3.33 | % | 1.79 | % | 116.07 | % | ||||||
| $ | 9.90 | 4.01 | % | $ | 201 | 1.68 | % | 3.52 | % | 1.80 | % | 85.83 | % | ||||||
| $ | 9.86 | 2.31 | % | $ | 207 | 1.68 | % | 3.47 | % | 1.79 | % | 127.13 | % | ||||||
| $ | 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 | % | ||||||
135
BB&T Funds
Financial Highlights, Class C Shares
Selected data for a share of beneficial interest outstanding throughout the periods indicated.
| Investment Activities | Distributions | ||||||||||||||||||||
| 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 Distributions | |||||||||||||||
Total Return Bond Fund | |||||||||||||||||||||
Year Ended September 30, 2008 | $ | 10.14 | 0.36 | (c) | (0.23 | ) | 0.13 | (0.38 | ) | — | (0.38 | ) | |||||||||
Year Ended September 30, 2007 | $ | 10.13 | 0.37 | (c) | 0.01 | 0.38 | (0.37 | ) | — | (0.37 | ) | ||||||||||
Year Ended September 30, 2006 | $ | 10.32 | 0.34 | (c) | (0.12 | ) | 0.22 | (0.36 | ) | (0.05 | ) | (0.41 | ) | ||||||||
Year Ended September 30, 2005 | $ | 10.59 | 0.30 | (c) | (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 | ) | ||||||||||
National Tax-Free Money Market Fund | |||||||||||||||||||||
Year Ended September 30, 2008 | $ | 1.00 | 0.01 | (c) | — | (d) | 0.01 | (0.01 | ) | — | (0.01 | ) | |||||||||
Year Ended September 30, 2007 | $ | 1.00 | 0.02 | (c) | — | 0.02 | (0.02 | ) | — | (0.02 | ) | ||||||||||
August 1, 2006 to September 30, 2006 (e) | $ | 1.00 | — | (d) | — | — | (d) | — | (d) | — | — | (d) | |||||||||
Prime Money Market Fund | |||||||||||||||||||||
Year Ended September 30, 2008 | $ | 1.00 | 0.02 | (c) | — | (d) | 0.02 | (0.02 | ) | — | (0.02 | ) | |||||||||
Year Ended September 30, 2007 | $ | 1.00 | 0.04 | (c) | — | 0.04 | (0.04 | ) | — | (0.04 | ) | ||||||||||
Year Ended September 30, 2006 | $ | 1.00 | 0.03 | — | (d) | 0.03 | (0.03 | ) | — | (0.03 | ) | ||||||||||
Year Ended September 30, 2005 | $ | 1.00 | 0.01 | — | (d) | 0.01 | (0.01 | ) | — | (0.01 | ) | ||||||||||
Year Ended September 30, 2004 | $ | 1.00 | — | (d) | — | (d) | — | (d) | — | (d) | — | — | (d) | ||||||||
U.S. Treasury Money Market Fund | |||||||||||||||||||||
Year Ended September 30, 2008 | $ | 1.00 | 0.01 | (c) | — | (d) | 0.01 | (0.01 | ) | — | (0.01 | ) | |||||||||
Year Ended September 30, 2007 | $ | 1.00 | 0.04 | (c) | — | 0.04 | (0.04 | ) | — | (0.04 | ) | ||||||||||
Year Ended September 30, 2006 | $ | 1.00 | 0.03 | — | 0.03 | (0.03 | ) | — | (0.03 | ) | |||||||||||
Year Ended September 30, 2005 | $ | 1.00 | 0.01 | — | 0.01 | (0.01 | ) | — | (0.01 | ) | |||||||||||
Year Ended September 30, 2004 | $ | 1.00 | — | (d) | — | — | (d) | — | (d) | — | — | (d) | |||||||||
Capital Manager Conservative Growth Fund*** | |||||||||||||||||||||
Year Ended September 30, 2008 | $ | 10.51 | 0.19 | (c) | (1.24 | ) | (1.05 | ) | (0.32 | ) | (0.73 | ) | (1.05 | ) | |||||||
Year Ended September 30, 2007 | $ | 9.93 | 0.27 | (c) | 0.53 | 0.80 | (0.22 | ) | — | (0.22 | ) | ||||||||||
Year Ended September 30, 2006 | $ | 9.73 | 0.23 | (c) | 0.23 | 0.46 | (0.26 | ) | — | (0.26 | ) | ||||||||||
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 | (c) | 0.44 | 0.53 | (0.08 | ) | — | (0.08 | ) | ||||||||||
Capital Manager Moderate Growth Fund*** | |||||||||||||||||||||
Year Ended September 30, 2008 | $ | 10.81 | 0.09 | (c) | (1.82 | ) | (1.73 | ) | (0.28 | ) | (1.13 | ) | (1.41 | ) | |||||||
Year Ended September 30, 2007 | $ | 10.10 | 0.21 | (c) | 0.86 | 1.07 | (0.14 | ) | (0.22 | ) | (0.36 | ) | |||||||||
Year Ended September 30, 2006 | $ | 9.69 | 0.17 | (c) | 0.42 | 0.59 | (0.18 | ) | — | (0.18 | ) | ||||||||||
Year Ended September 30, 2005 | $ | 8.91 | 0.09 | (c) | 0.77 | 0.86 | (0.08 | ) | — | (0.08 | ) | ||||||||||
Year Ended September 30, 2004 | $ | 8.18 | 0.01 | (c) | 0.73 | 0.74 | (0.01 | ) | — | (0.01 | ) | ||||||||||
Capital Manager Growth Fund*** | |||||||||||||||||||||
Year Ended September 30, 2008 | $ | 10.92 | 0.04 | (c) | (2.15 | ) | (2.11 | ) | (0.27 | ) | (1.37 | ) | (1.64 | ) | |||||||
Year Ended September 30, 2007 | $ | 10.05 | 0.18 | (c) | 1.04 | 1.22 | (0.08 | ) | (0.27 | ) | (0.35 | ) | |||||||||
Year Ended September 30, 2006 | $ | 9.52 | 0.11 | (c) | 0.57 | 0.68 | (0.15 | ) | — | (0.15 | ) | ||||||||||
Year Ended September 30, 2005 | $ | 8.56 | 0.04 | (c) | 0.95 | 0.99 | (0.03 | ) | — | (0.03 | ) | ||||||||||
Year Ended September 30, 2004 | $ | 7.71 | (0.02 | )(c) | 0.87 | 0.85 | — | — | — | ||||||||||||
Capital Manager Equity Fund*** | |||||||||||||||||||||
Year Ended September 30, 2008 | $ | 11.87 | (0.03 | )(c) | �� | (2.66 | ) | (2.69 | ) | (0.27 | ) | (1.81 | ) | (2.08 | ) | ||||||
Year Ended September 30, 2007 | $ | 11.22 | 0.12 | (c) | 1.41 | 1.53 | (0.03 | ) | (0.85 | ) | (0.88 | ) | |||||||||
Year Ended September 30, 2006 | $ | 10.64 | 0.10 | (c) | 0.78 | 0.88 | (0.11 | ) | (0.19 | ) | (0.30 | ) | |||||||||
Year Ended September 30, 2005 | $ | 9.33 | (0.01 | )(c) | 1.32 | 1.31 | — | (d) | — | — | (d) | ||||||||||
Year Ended September 30, 2004 | $ | 8.28 | (0.05 | )(c) | 1.10 | 1.05 | — | — | — | ||||||||||||
| * | 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. |
| *** | The expense ratios exclude the impact of fees/expenses paid by each underlying fund. |
| (a) | Not annualized for periods less than one year. |
| (b) | Annualized for periods less than one year. |
| (c) | Per share net investment income (loss) has been calculated using the average daily shares method. |
| (d) | Amount is less than $0.005. |
| (e) | Period from commencement of operations. |
See accompanying notes to the financial statements.
136
| Ratios/Supplementary Data | |||||||||||||||||||
Net Asset | Total Return (excludes sales charge) (a) | Net Assets, End of Period (000) | Ratio of net expenses to average net assets (b) | Ratio of net investment income (loss) to average net assets (b) | Ratio of expenses to average net assets*(b) | Portfolio turnover rate** | |||||||||||||
| $ | 9.89 | 1.21 | % | $ | 184 | 1.66 | % | 3.49 | % | 1.78 | % | 190.15 | % | ||||||
| $ | 10.14 | 3.83 | % | $ | 115 | 1.68 | % | 3.61 | % | 1.80 | % | 222.24 | % | ||||||
| $ | 10.13 | 2.18 | % | $ | 116 | 1.68 | % | 3.35 | % | 1.79 | % | 226.36 | % | ||||||
| $ | 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 | % | ||||||
|
|
| ||||||||||||||||||
| $ | 1.00 | 1.35 | % | $ | 1 | 1.41 | % | 1.33 | % | 1.42 | % | — | |||||||
| $ | 1.00 | 2.26 | % | $ | 1 | 1.45 | % | 2.24 | % | 1.50 | % | — | |||||||
| $ | 1.00 | 0.36 | % | $ | 1 | 1.39 | % | 2.19 | % | 1.78 | % | — | |||||||
| $ | 1.00 | 2.36 | % | $ | 244 | 1.46 | % | 2.46 | % | 1.59 | % | — | |||||||
| $ | 1.00 | 3.99 | % | $ | 460 | 1.48 | % | 3.91 | % | 1.59 | % | — | |||||||
| $ | 1.00 | 3.35 | % | $ | 393 | 1.48 | % | 3.35 | % | 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 | 1.29 | % | $ | 37 | 1.38 | % | 1.30 | % | 1.58 | % | — | |||||||
| $ | 1.00 | 3.68 | % | $ | 42 | 1.47 | % | 3.63 | % | 1.61 | % | — | |||||||
| $ | 1.00 | 3.13 | % | $ | 55 | 1.45 | % | 3.30 | % | 1.59 | % | — | |||||||
| $ | 1.00 | 1.07 | % | $ | 38 | 1.50 | % | 1.40 | % | 1.66 | % | — | |||||||
| $ | 1.00 | 0.05 | % | $ | 5 | 1.02 | % | 0.05 | % | 1.71 | % | — | |||||||
|
|
| ||||||||||||||||||
| $ | 8.41 | (10.99 | )% | $ | 94 | 1.10 | % | 1.99 | % | 1.35 | % | 39.99 | % | ||||||
| $ | 10.51 | 8.11 | % | $ | 77 | 1.10 | % | 2.58 | % | 1.41 | % | 29.58 | % | ||||||
| $ | 9.93 | 4.75 | % | $ | 127 | 1.08 | % | 2.35 | % | 1.45 | % | 5.69 | % | ||||||
| $ | 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 | % | ||||||
|
|
| ||||||||||||||||||
| $ | 7.67 | (18.02 | )% | $ | 79 | 1.10 | % | 1.04 | % | 1.35 | % | 63.63 | % | ||||||
| $ | 10.81 | 10.72 | % | $ | 156 | 1.11 | % | 1.98 | % | 1.42 | % | 40.05 | % | ||||||
| $ | 10.10 | 6.19 | % | $ | 139 | 1.10 | % | 1.71 | % | 1.47 | % | 7.33 | % | ||||||
| $ | 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 | % | ||||||
| $ | 7.17 | (22.31 | )% | $ | 55 | 1.10 | % | 0.49 | % | 1.35 | % | 77.54 | % | ||||||
| $ | 10.92 | 12.33 | % | $ | 78 | 1.11 | % | 1.74 | % | 1.43 | % | 44.48 | % | ||||||
| $ | 10.05 | 7.19 | % | $ | 61 | 1.11 | % | 1.17 | % | 1.46 | % | 6.26 | % | ||||||
| $ | 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 | % | ||||||
| $ | 7.10 | (26.77 | )% | $ | 1 | 1.13 | % | (0.32 | )% | 1.43 | % | 67.40 | % | ||||||
| $ | 11.87 | 14.13 | % | $ | 1 | 1.00 | % | 1.02 | % | 1.25 | % | 48.80 | % | ||||||
| $ | 11.22 | 8.44 | % | $ | 10 | 1.11 | % | 0.90 | % | 1.48 | % | 1.48 | % | ||||||
| $ | 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 | % | ||||||
137
BB&T Funds
Financial Highlights, Institutional Shares
Selected data for a share of beneficial interest outstanding throughout the periods indicated.
| Investment Activities | Distributions | ||||||||||||||||||||
| 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 Distributions | |||||||||||||||
Large Cap Fund | |||||||||||||||||||||
Year Ended September 30, 2008 | $ | 19.20 | 0.18 | (c) | (5.16 | ) | (4.98 | ) | (0.13 | ) | (2.73 | ) | (2.86 | ) | |||||||
Year Ended September 30, 2007 | $ | 20.38 | 0.29 | (c) | 2.16 | 2.45 | (0.28 | ) | (3.35 | ) | (3.63 | ) | |||||||||
Year Ended September 30, 2006 | $ | 19.51 | 0.35 | (c) | 2.31 | 2.66 | (0.35 | ) | (1.44 | ) | (1.79 | ) | |||||||||
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 | ) | |||||||||||
Mid Cap Value Fund | |||||||||||||||||||||
Year Ended September 30, 2008 | $ | 15.00 | 0.05 | (c) | (3.10 | ) | (3.05 | ) | (0.03 | ) | (1.36 | ) | (1.39 | ) | |||||||
Year Ended September 30, 2007 | $ | 13.54 | 0.08 | (c) | 2.13 | 2.21 | (0.06 | ) | (0.69 | ) | (0.75 | ) | |||||||||
Year Ended September 30, 2006 | $ | 13.38 | 0.06 | (c) | 1.62 | 1.68 | (0.07 | ) | (1.45 | ) | (1.52 | ) | |||||||||
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 | ) | ||||||||||
Mid Cap Growth Fund | |||||||||||||||||||||
Year Ended September 30, 2008 | $ | 15.73 | (0.04 | )(c) | (4.06 | ) | (4.10 | ) | — | (1.03 | ) | (1.03 | ) | ||||||||
Year Ended September 30, 2007 | $ | 13.09 | (0.04 | )(c) | 4.35 | 4.31 | (0.02 | ) | (1.65 | ) | (1.67 | ) | |||||||||
Year Ended September 30, 2006 | $ | 14.51 | 0.02 | (c) | 0.02 | (d) | 0.04 | (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 | — | — | — | ||||||||||||
Small Cap Fund | |||||||||||||||||||||
Year Ended September 30, 2008 | $ | 15.03 | — | (c)(e) | (2.36 | ) | (2.36 | ) | — | (1.20 | ) | (1.20 | ) | ||||||||
Year Ended September 30, 2007 | $ | 15.19 | 0.10 | (c) | 0.75 | 0.85 | (0.10 | ) | (0.91 | ) | (1.01 | ) | |||||||||
Year Ended September 30, 2006 | $ | 16.44 | 0.05 | (c) | 1.05 | 1.10 | (0.05 | ) | (2.30 | ) | (2.35 | ) | |||||||||
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 | ) | |||||||||
International Equity Fund | |||||||||||||||||||||
Year Ended September 30, 2008 | $ | 8.64 | 0.10 | (c) | (2.49 | ) | (2.39 | ) | (0.03 | ) | (0.75 | ) | (0.78 | ) | |||||||
Year Ended September 30, 2007 | $ | 11.23 | 0.14 | (c) | 1.88 | 2.02 | (0.09 | ) | (4.52 | ) | (4.61 | ) | |||||||||
Year Ended September 30, 2006 | $ | 9.72 | 0.18 | (c) | 1.50 | 1.68 | (0.17 | ) | — | (0.17 | ) | ||||||||||
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 | ) | ||||||||||
Special Opportunities Equity Fund | |||||||||||||||||||||
Year Ended September 30, 2008 | $ | 18.51 | (0.04 | )(f) | (2.14 | ) | (2.18 | ) | — | (0.75 | ) | (0.75 | ) | ||||||||
Year Ended September 30, 2007 | $ | 16.57 | 0.03 | (c) | 3.51 | 3.54 | — | (1.60 | ) | (1.60 | ) | ||||||||||
Year Ended September 30, 2006 | $ | 15.65 | — | (e) | 1.71 | 1.71 | — | (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 | ) | ||||||||||
Equity Income Fund | |||||||||||||||||||||
Year Ended September 30, 2008 | $ | 15.05 | 0.51 | (c) | (2.26 | ) | (1.75 | ) | (0.35 | ) | (0.58 | ) | (0.93 | ) | |||||||
Year Ended September 30, 2007 | $ | 13.37 | 0.40 | (c) | 2.31 | 2.71 | (0.35 | ) | (0.68 | ) | (1.03 | ) | |||||||||
Year Ended September 30, 2006 | $ | 12.10 | 0.32 | 1.57 | 1.89 | (0.35 | ) | (0.27 | ) | (0.62 | ) | ||||||||||
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 (g) | $ | 10.00 | 0.05 | (c) | 0.34 | 0.39 | (0.04 | ) | — | (0.04 | ) | ||||||||||
Short U.S. Government Fund | |||||||||||||||||||||
Year Ended September 30, 2008 | $ | 9.53 | 0.35 | (c) | 0.06 | 0.41 | (0.40 | ) | — | (0.40 | ) | ||||||||||
Year Ended September 30, 2007 | $ | 9.49 | 0.38 | (c) | 0.08 | 0.46 | (0.42 | ) | — | (0.42 | ) | ||||||||||
Year Ended September 30, 2006 | $ | 9.51 | 0.30 | (c) | 0.01 | (d) | 0.31 | (0.33 | ) | — | (0.33 | ) | |||||||||
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 | ) | ||||||||||
| * | 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) | Not annualized for periods less than one year. |
| (b) | Annualized for periods less than one year. |
| (c) | Per share net investment income (loss) has been calculated using the average daily shares method. |
| (d) | The amount shown for a share outstanding throughout the period does not accord with the change in aggregate gains and losses in the portfolio of securities during the period because of the timing of sales and purchases of Fund shares in relation to fluctuating market values during the period. |
| (e) | Amount is less than $0.005. |
| (f) | Per share net investment income (loss) has been calculated using the average daily shares method. |
| (g) | Period from commencement of operations. |
See accompanying notes to the financial statements.
138
| Ratios/Supplementary Data | |||||||||||||||||||
Net Asset | Total Return (a) | Net Assets, End of Period (000) | Ratio of net expenses to average net assets (b) | Ratio of net investment income (loss) to average net assets (b) | Ratio of expenses to average net assets*(b) | Portfolio turnover rate**(a) | |||||||||||||
| $ | 11.36 | (29.32 | )% | $ | 257,036 | 0.89 | % | 1.28 | % | 0.94 | % | 38.43 | % | ||||||
| $ | 19.20 | 12.89 | % | $ | 602,101 | 0.91 | % | 1.50 | % | 0.96 | % | 68.60 | % | ||||||
| $ | 20.38 | 14.59 | % | $ | 660,667 | 0.89 | % | 1.80 | % | 0.93 | % | 34.83 | % | ||||||
| $ | 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 | % | ||||||
| $ | 10.56 | (21.87 | )% | $ | 163,840 | 0.89 | % | 0.43 | % | 0.93 | % | 65.74 | % | ||||||
| $ | 15.00 | 16.75 | % | $ | 243,437 | 0.91 | % | 0.53 | % | 0.95 | % | 58.59 | % | ||||||
| $ | 13.54 | 13.52 | % | $ | 209,685 | 0.89 | % | 0.48 | % | 0.93 | % | 53.92 | % | ||||||
| $ | 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 | % | ||||||
| $ | 10.60 | (28.12 | )% | $ | 162,072 | 0.90 | % | (0.31 | )% | 0.94 | % | 218.03 | % | ||||||
| $ | 15.73 | 36.43 | % | $ | 197,736 | 0.90 | % | (0.25 | )% | 0.94 | % | 134.95 | % | ||||||
| $ | 13.09 | (0.15 | )% | $ | 132,677 | 0.89 | % | 0.17 | % | 0.94 | % | 140.90 | % | ||||||
| $ | 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 | % | ||||||
| $ | 11.47 | (16.60 | )% | $ | 33,901 | 1.03 | % | (0.01 | )% | 1.23 | % | 94.93 | % | ||||||
| $ | 15.03 | 5.43 | % | $ | 82,389 | 1.06 | % | 0.62 | % | 1.26 | % | 46.54 | % | ||||||
| $ | 15.19 | 7.23 | % | $ | 110,722 | 1.02 | % | 0.30 | % | 1.26 | % | 43.25 | % | ||||||
| $ | 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 | % | ||||||
| $ | 5.47 | (30.65 | )% | $ | 109,438 | 1.31 | % | 1.36 | % | 1.49 | % | 112.65 | % | ||||||
| $ | 8.64 | 20.39 | % | $ | 164,147 | 1.13 | % | 1.13 | % | 1.26 | % | 129.80 | % | ||||||
| $ | 11.23 | 17.38 | % | $ | 253,690 | 1.15 | % | 1.68 | % | 1.25 | % | 36.22 | % | ||||||
| $ | 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 | % | ||||||
| $ | 15.58 | (12.35 | )% | $ | 167,544 | 0.99 | % | (0.24 | )% | 0.99 | % | 25.80 | % | ||||||
| $ | 18.51 | 22.55 | % | $ | 127,210 | 1.03 | % | 0.18 | % | 1.03 | % | 49.43 | % | ||||||
| $ | 16.57 | 11.50 | % | $ | 67,232 | 1.03 | % | (0.02 | )% | 1.03 | % | 58.01 | % | ||||||
| $ | 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 | % | ||||||
| $ | 12.37 | (12.24 | )% | $ | 140,256 | 0.89 | % | 3.72 | % | 0.89 | % | 30.01 | % | ||||||
| $ | 15.05 | 21.16 | % | $ | 46,053 | 0.94 | % | 2.81 | % | 0.94 | % | 37.85 | % | ||||||
| $ | 13.37 | 16.04 | % | $ | 35,205 | 0.95 | % | 2.55 | % | 0.95 | % | 45.38 | % | ||||||
| $ | 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 | % | ||||||
| $ | 9.54 | 4.38 | % | $ | 44,912 | 0.65 | % | 3.68 | % | 0.80 | % | 48.20 | % | ||||||
| $ | 9.53 | 4.93 | % | $ | 40,756 | 0.66 | % | 4.01 | % | 0.81 | % | 44.10 | % | ||||||
| $ | 9.49 | 3.37 | % | $ | 66,371 | 0.64 | % | 3.21 | % | 0.79 | % | 98.08 | % | ||||||
| $ | 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 | % | ||||||
139
BB&T Funds
Financial Highlights, Institutional Shares
Selected data for a share of beneficial interest outstanding throughout the periods indicated.
| Investment Activities | Distributions | |||||||||||||||||||
| Net Asset Value, Beginning of Period | Net investment income | Net realized/ unrealized gains (losses) on investments | Total from Investment Activities | Net investment income | Net realized gains on investments | Total Distributions | ||||||||||||||
Intermediate U.S. Government Fund | ||||||||||||||||||||
Year Ended September 30, 2008 | $ | 9.94 | 0.44 | (a) | 0.12 | 0.56 | (0.45 | ) | — | (0.45 | ) | |||||||||
Year Ended September 30, 2007 | $ | 9.90 | 0.45 | (a) | 0.04 | 0.49 | (0.45 | ) | — | (0.45 | ) | |||||||||
Year Ended September 30, 2006 | $ | 10.03 | 0.44 | (a) | (0.13 | ) | 0.31 | (0.44 | ) | — | (0.44 | ) | ||||||||
Year Ended September 30, 2005 | $ | 10.25 | 0.37 | (a) | (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 | ) | ||||||||
Total Return Bond Fund | ||||||||||||||||||||
Year Ended September 30, 2008 | $ | 10.13 | 0.46 | (a) | (0.22 | ) | 0.24 | (0.48 | ) | — | (0.48 | ) | ||||||||
Year Ended September 30, 2007 | $ | 10.13 | 0.47 | (a) | — | 0.47 | (0.47 | ) | — | (0.47 | ) | |||||||||
Year Ended September 30, 2006 | $ | 10.32 | 0.45 | (a) | (0.13 | ) | 0.32 | (0.46 | ) | (0.05 | ) | (0.51 | ) | |||||||
Year Ended September 30, 2005 | $ | 10.59 | 0.39 | (a) | (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 | ) | |||||||||
Kentucky Intermediate Tax-Free Fund | ||||||||||||||||||||
Year Ended September 30, 2008 | $ | 10.05 | 0.34 | (a) | (0.18 | ) | 0.16 | (0.34 | ) | — | (0.34 | ) | ||||||||
Year Ended September 30, 2007 | $ | 10.11 | 0.35 | (a) | (0.06 | ) | 0.29 | (0.35 | ) | — | (0.35 | ) | ||||||||
Year Ended September 30, 2006 | $ | 10.04 | 0.33 | 0.07 | 0.40 | (0.33 | ) | — | (0.33 | ) | ||||||||||
Year Ended September 30, 2005 | $ | 10.20 | 0.29 | (a) | (0.16 | ) | 0.13 | (0.29 | ) | — | (0.29 | ) | ||||||||
Year Ended September 30, 2004 | $ | 10.22 | 0.28 | (a) | (0.02 | ) | 0.26 | (0.28 | ) | — | (0.28 | ) | ||||||||
Maryland Intermediate Tax-Free Fund | ||||||||||||||||||||
Year Ended September 30, 2008 | $ | 10.17 | 0.34 | (a) | (0.11 | ) | 0.23 | (0.34 | ) | — | (0.34 | ) | ||||||||
Year Ended September 30, 2007 | $ | 10.13 | 0.33 | (a) | 0.04 | 0.37 | (0.33 | ) | — | (0.33 | ) | |||||||||
Year Ended September 30, 2006 | $ | 10.04 | 0.31 | 0.09 | 0.40 | (0.31 | ) | — | (0.31 | ) | ||||||||||
Year Ended September 30, 2005 | $ | 10.16 | 0.28 | (a) | (0.12 | ) | 0.16 | (0.28 | ) | — | (0.28 | ) | ||||||||
Year Ended September 30, 2004 | $ | 10.16 | 0.25 | — | (b) | 0.25 | (0.25 | ) | — | (0.25 | ) | |||||||||
North Carolina Intermediate Tax-Free Fund | ||||||||||||||||||||
Year Ended September 30, 2008 | $ | 10.33 | 0.37 | (a) | (0.20 | ) | 0.17 | (0.37 | ) | (0.04 | ) | (0.41 | ) | |||||||
Year Ended September 30, 2007 | $ | 10.38 | 0.38 | (a) | (0.04 | ) | 0.34 | (0.38 | ) | (0.01 | ) | (0.39 | ) | |||||||
Year Ended September 30, 2006 | $ | 10.46 | 0.39 | — | (b) | 0.39 | (0.38 | ) | (0.09 | ) | (0.47 | ) | ||||||||
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 | ) | ||||||||
South Carolina Intermediate Tax-Free Fund | ||||||||||||||||||||
Year Ended September 30, 2008 | $ | 10.21 | 0.36 | (a) | (0.23 | ) | 0.13 | (0.36 | ) | (0.09 | ) | (0.45 | ) | |||||||
Year Ended September 30, 2007 | $ | 10.29 | 0.37 | (a) | (0.06 | ) | 0.31 | (0.38 | ) | (0.01 | ) | (0.39 | ) | |||||||
Year Ended September 30, 2006 | $ | 10.47 | 0.37 | — | (b) | 0.37 | (0.37 | ) | (0.18 | ) | (0.55 | ) | ||||||||
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 | ) | ||||||||
Virginia Intermediate Tax-Free Fund | ||||||||||||||||||||
Year Ended September 30, 2008 | $ | 11.31 | 0.40 | (a) | (0.16 | ) | 0.24 | (0.40 | ) | (0.05 | ) | (0.45 | ) | |||||||
Year Ended September 30, 2007 | $ | 11.39 | 0.41 | (a) | (0.05 | ) | 0.36 | (0.42 | ) | (0.02 | ) | (0.44 | ) | |||||||
Year Ended September 30, 2006 | $ | 11.49 | 0.42 | (0.04 | ) | 0.38 | (0.42 | ) | (0.06 | ) | (0.48 | ) | ||||||||
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 | ) | ||||||||
West Virginia Intermediate Tax-Free Fund | ||||||||||||||||||||
Year Ended September 30, 2008 | $ | 9.72 | 0.36 | (a) | (0.34 | ) | 0.02 | (0.35 | ) | (0.02 | ) | (0.37 | ) | |||||||
Year Ended September 30, 2007 | $ | 9.80 | 0.37 | (a) | (0.05 | ) | 0.32 | (0.37 | ) | (0.03 | ) | (0.40 | ) | |||||||
Year Ended September 30, 2006 | $ | 9.86 | 0.40 | (0.01 | ) | 0.39 | (0.39 | ) | (0.06 | ) | (0.45 | ) | ||||||||
Year Ended September 30, 2005 | $ | 10.09 | 0.37 | (a) | (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 | ) | ||||||||
| * | 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) | Per share net investment income (loss) has been calculated using the average daily shares method. |
| (b) | Amount is less than $0.005. |
See accompanying notes to the financial statements.
140
| Ratios/Supplementary Data | |||||||||||||||||||
Net Asset | Total Return | Net Assets, End of Period (000) | Ratio of net expenses to average net assets | Ratio of net investment income to average net assets | Ratio of expenses to average net assets* | Portfolio turnover rate** | |||||||||||||
|
|
| ||||||||||||||||||
| $ | 10.05 | 5.67 | % | $ | 110,289 | 0.67 | % | 4.33 | % | 0.79 | % | 116.07 | % | ||||||
| $ | 9.94 | 5.04 | % | $ | 132,403 | 0.68 | % | 4.49 | % | 0.80 | % | 85.83 | % | ||||||
| $ | 9.90 | 3.23 | % | $ | 252,402 | 0.67 | % | 4.45 | % | 0.79 | % | 127.13 | % | ||||||
| $ | 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 | % | ||||||
| $ | 9.89 | 2.32 | % | $ | 430,079 | 0.66 | % | 4.48 | % | 0.78 | % | 190.15 | % | ||||||
| $ | 10.13 | 4.77 | % | $ | 433,382 | 0.68 | % | 4.62 | % | 0.80 | % | 222.24 | % | ||||||
| $ | 10.13 | 3.30 | % | $ | 367,353 | 0.67 | % | 4.42 | % | 0.79 | % | 226.36 | % | ||||||
| $ | 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 | % | ||||||
|
|
| ||||||||||||||||||
| $ | 9.87 | 1.59 | % | $ | 10,924 | 0.64 | % | 3.38 | % | 0.84 | % | 54.22 | % | ||||||
| $ | 10.05 | 2.92 | % | $ | 10,625 | 0.65 | % | 3.45 | % | 0.85 | % | 69.73 | % | ||||||
| $ | 10.11 | 4.04 | % | $ | 11,175 | 0.66 | % | 3.26 | % | 0.87 | % | 64.55 | % | ||||||
| $ | 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 | % | ||||||
|
|
| ||||||||||||||||||
| $ | 10.06 | 2.10 | % | $ | 11,527 | 0.54 | % | 3.26 | % | 0.84 | % | 108.13 | % | ||||||
| $ | 10.17 | 3.74 | % | $ | 8,374 | 0.59 | % | 3.29 | % | 0.89 | % | 136.09 | % | ||||||
| $ | 10.13 | 4.10 | % | $ | 8,003 | 0.60 | % | 3.13 | % | 0.90 | % | 219.80 | % | ||||||
| $ | 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 | % | ||||||
|
|
| ||||||||||||||||||
| $ | 10.09 | 1.67 | % | $ | 103,560 | 0.64 | % | 3.59 | % | 0.79 | % | 82.02 | % | ||||||
| $ | 10.33 | 3.33 | % | $ | 96,282 | 0.66 | % | 3.65 | % | 0.81 | % | 106.16 | % | ||||||
| $ | 10.38 | 3.84 | % | $ | 87,854 | 0.65 | % | 3.70 | % | 0.80 | % | 94.95 | % | ||||||
| $ | 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 | % | ||||||
|
|
| ||||||||||||||||||
| $ | 9.89 | 1.27 | % | $ | 13,298 | 0.71 | % | 3.52 | % | 0.86 | % | 127.76 | % | ||||||
| $ | 10.21 | 3.08 | % | $ | 12,789 | 0.68 | % | 3.60 | % | 0.85 | % | 68.69 | % | ||||||
| $ | 10.29 | 3.66 | % | $ | 15,426 | 0.69 | % | 3.58 | % | 0.86 | % | 80.24 | % | ||||||
| $ | 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 | % | ||||||
|
|
| ||||||||||||||||||
| $ | 11.10 | 2.13 | % | $ | 71,631 | 0.64 | % | 3.50 | % | 0.79 | % | 53.28 | % | ||||||
| $ | 11.31 | 3.21 | % | $ | 68,911 | 0.66 | % | 3.64 | % | 0.81 | % | 85.36 | % | ||||||
| $ | 11.39 | 3.49 | % | $ | 65,652 | 0.65 | % | 3.80 | % | 0.80 | % | 76.53 | % | ||||||
| $ | 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 | % | ||||||
|
|
| ||||||||||||||||||
| $ | 9.37 | 0.18 | % | $ | 56,829 | 0.66 | % | 3.66 | % | 0.66 | % | 39.13 | % | ||||||
| $ | 9.72 | 3.37 | % | $ | 52,518 | 0.66 | % | 3.85 | % | 0.66 | % | 49.60 | % | ||||||
| $ | 9.80 | 4.10 | % | $ | 50,916 | 0.65 | % | 4.03 | % | 0.65 | % | 50.14 | % | ||||||
| $ | 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 | % | ||||||
141
BB&T Funds
Financial Highlights, Institutional Shares
Selected data for a share of beneficial interest outstanding throughout the periods indicated.
| Investment Activities | Distributions | ||||||||||||||||||||
| Net Asset Value, Beginning of Period | Net investment income | Net realized/ unrealized gains (losses) on investments | Total from Investment Activities | Net investment income | Net realized gains on investments | Total Distributions | |||||||||||||||
National Tax-Free Money Market Fund | |||||||||||||||||||||
Year Ended September 30, 2008 | $ | 1.00 | 0.02 | (c) | — | (d) | 0.02 | (0.02 | ) | — | (0.02 | ) | |||||||||
Year Ended September 30, 2007 | $ | 1.00 | 0.03 | (c) | — | 0.03 | (0.03 | ) | — | (0.03 | ) | ||||||||||
August 1, 2006 to September 30, 2006 (e) | $ | 1.00 | 0.01 | — | 0.01 | (0.01 | ) | — | (0.01 | ) | |||||||||||
Prime Money Market Fund | |||||||||||||||||||||
Year Ended September 30, 2008 | $ | 1.00 | 0.03 | (c) | — | (d) | 0.03 | (0.03 | ) | — | (0.03 | ) | |||||||||
Year Ended September 30, 2007 | $ | 1.00 | 0.05 | (c) | — | 0.05 | (0.05 | ) | — | (0.05 | ) | ||||||||||
Year Ended September 30, 2006 | $ | 1.00 | 0.04 | — | (d) | 0.04 | (0.04 | ) | — | (0.04 | ) | ||||||||||
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 | ) | |||||||||||
U.S. Treasury Money Market Fund | |||||||||||||||||||||
Year Ended September 30, 2008 | $ | 1.00 | 0.02 | (c) | — | (d) | 0.02 | (0.02 | ) | — | (0.02 | ) | |||||||||
Year Ended September 30, 2007 | $ | 1.00 | 0.05 | (c) | — | 0.05 | (0.05 | ) | — | (0.05 | ) | ||||||||||
Year Ended September 30, 2006 | $ | 1.00 | 0.04 | — | 0.04 | (0.04 | ) | — | (0.04 | ) | |||||||||||
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 | ) | |||||||||||
Capital Manager Conservative Growth Fund*** | |||||||||||||||||||||
Year Ended September 30, 2008 | $ | 10.62 | 0.28 | (c) | (1.26 | ) | (0.98 | ) | (0.41 | ) | (0.73 | ) | (1.14 | ) | |||||||
Year Ended September 30, 2007 | $ | 10.04 | 0.38 | (c) | 0.53 | 0.91 | (0.33 | ) | — | (0.33 | ) | ||||||||||
Year Ended September 30, 2006 | $ | 9.83 | 0.33 | (c) | 0.24 | 0.57 | (0.36 | ) | — | (0.36 | ) | ||||||||||
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 | ) | ||||||||||
Capital Manager Moderate Growth Fund*** | |||||||||||||||||||||
Year Ended September 30, 2008 | $ | 10.99 | 0.19 | (c) | (1.86 | ) | (1.67 | ) | (0.38 | ) | (1.13 | ) | (1.51 | ) | |||||||
Year Ended September 30, 2007 | $ | 10.25 | 0.32 | (c) | 0.88 | 1.20 | (0.24 | ) | (0.22 | ) | (0.46 | ) | |||||||||
Year Ended September 30, 2006 | $ | 9.83 | 0.27 | (c) | 0.43 | 0.70 | (0.28 | ) | — | (0.28 | ) | ||||||||||
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 | ) | ||||||||||
Capital Manager Growth Fund*** | |||||||||||||||||||||
Year Ended September 30, 2008 | $ | 11.14 | 0.13 | (c) | (2.20 | ) | (2.07 | ) | (0.36 | ) | (1.37 | ) | (1.73 | ) | |||||||
Year Ended September 30, 2007 | $ | 10.24 | 0.27 | (c) | 1.08 | 1.35 | (0.18 | ) | (0.27 | ) | (0.45 | ) | |||||||||
Year Ended September 30, 2006 | $ | 9.69 | 0.22 | (c) | 0.57 | 0.79 | (0.24 | ) | — | (0.24 | ) | ||||||||||
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 | ) | ||||||||||
Capital Manager Equity Fund*** | |||||||||||||||||||||
Year Ended September 30, 2008 | $ | 12.35 | 0.07 | (c) | (2.78 | ) | (2.71 | ) | (0.35 | ) | (1.81 | ) | (2.16 | ) | |||||||
Year Ended September 30, 2007 | $ | 11.65 | 0.25 | (c) | 1.42 | 1.67 | (0.12 | ) | (0.85 | ) | (0.97 | ) | |||||||||
Year Ended September 30, 2006 | $ | 11.02 | 0.20 | (c) | 0.84 | 1.04 | (0.22 | ) | (0.19 | ) | (0.41 | ) | |||||||||
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 | ) | ||||||||||
| * | 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. |
| *** | The expense ratios exclude the impact of fees/expenses paid by each underlying fund. |
| (a) | Not annualized for periods less than one year. |
| (b) | Annualized for periods less than one year. |
| (c) | Per share net investment income (loss) has been calculated using the average daily shares method. |
| (d) | Amount is less than $0.005. |
| (e) | Period from commencement of operations. |
See accompanying notes to the financial statements.
142
| Ratios/Supplementary Data | |||||||||||||||||||
Net Asset | Total Return (a) | Net Assets, End of Period (000) | Ratio of net expenses to average net assets (b) | Ratio of net investment income to average net assets (b) | Ratio of expenses to average net assets*(b) | Portfolio turnover rate** | |||||||||||||
| $ | 1.00 | 2.37 | % | $ | 151,438 | 0.40 | % | 2.34 | % | 0.45 | % | — | |||||||
| $ | 1.00 | 3.33 | % | $ | 109,590 | 0.41 | % | 3.28 | % | 0.46 | % | — | |||||||
| $ | 1.00 | 0.53 | % | $ | 95,757 | 0.40 | % | 3.14 | % | 0.79 | % | — | |||||||
| $ | 1.00 | 3.38 | % | $ | 975,033 | 0.46 | % | 3.28 | % | 0.58 | % | — | |||||||
| $ | 1.00 | 5.03 | % | $ | 788,160 | 0.48 | % | 4.92 | % | 0.60 | % | — | |||||||
| $ | 1.00 | 4.38 | % | $ | 731,616 | 0.48 | % | 4.34 | % | 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 | 2.24 | % | $ | 712,696 | 0.44 | % | 2.18 | % | 0.58 | % | — | |||||||
| $ | 1.00 | 4.72 | % | $ | 557,282 | 0.46 | % | 4.62 | % | 0.60 | % | — | |||||||
| $ | 1.00 | 4.15 | % | $ | 481,484 | 0.46 | % | 4.04 | % | 0.59 | % | — | |||||||
| $ | 1.00 | 2.11 | % | $ | 592,736 | 0.48 | % | 2.02 | % | 0.64 | % | — | |||||||
| $ | 1.00 | 0.54 | % | $ | 926,162 | 0.57 | % | 0.53 | % | 0.71 | % | — | |||||||
|
|
| ||||||||||||||||||
| $ | 8.50 | (10.21 | )% | $ | 39,937 | 0.10 | % | 2.97 | % | 0.35 | % | 39.99 | % | ||||||
| $ | 10.62 | 9.16 | % | $ | 47,520 | 0.10 | % | 3.62 | % | 0.41 | % | 29.58 | % | ||||||
| $ | 10.04 | 5.87 | % | $ | 47,046 | 0.08 | % | 3.35 | % | 0.45 | % | 5.69 | % | ||||||
| $ | 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 | % | ||||||
|
|
| ||||||||||||||||||
| $ | 7.81 | (17.23 | )% | $ | 21,298 | 0.10 | % | 2.07 | % | 0.35 | % | 63.63 | % | ||||||
| $ | 10.99 | 11.80 | % | $ | 28,961 | 0.11 | % | 3.02 | % | 0.42 | % | 40.05 | % | ||||||
| $ | 10.25 | 7.33 | % | $ | 25,699 | 0.10 | % | 2.65 | % | 0.47 | % | 7.33 | % | ||||||
| $ | 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 | % | ||||||
| $ | 7.34 | (21.54 | )% | $ | 17,836 | 0.10 | % | 1.48 | % | 0.35 | % | 77.54 | % | ||||||
| $ | 11.14 | 13.45 | % | $ | 24,259 | 0.11 | % | 2.50 | % | 0.43 | % | 44.48 | % | ||||||
| $ | 10.24 | 8.22 | % | $ | 20,243 | 0.11 | % | 2.24 | % | 0.48 | % | 6.26 | % | ||||||
| $ | 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 | % | ||||||
| $ | 7.48 | (26.02 | )% | $ | 14,000 | 0.13 | % | 0.70 | % | 0.38 | % | 67.40 | % | ||||||
| $ | 12.35 | 14.98 | % | $ | 20,832 | 0.12 | % | 2.12 | % | 0.43 | % | 48.80 | % | ||||||
| $ | 11.65 | 9.66 | % | $ | 14,837 | 0.11 | % | 1.75 | % | 0.47 | % | 1.48 | % | ||||||
| $ | 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 | % | ||||||
143
Notes to Financial Statements
September 30, 2008
| 1. | Organization: |
The BB&T Funds (the “Trust”) commenced operations on October 5, 1992 and is 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.
As of the date of these financial statements, the Trust offers shares of the Large Cap 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, 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 Equity Index Fund, the Sterling Capital Small Cap Value Fund, the National Tax-Free Money Market 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, the “Funds”). The Equity Index Fund and the Sterling Capital Small Cap Value Fund are not included in these financial statements. 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 National Tax-Free Money Market Fund, 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 Fund of Funds, are referred to as the “Variable Net Asset Value Funds”. The Funds of Funds invest in underlying mutual funds 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 Funds are authorized to issue an unlimited amount of shares. The Funds discussed herein offer up to four classes of shares: Class A Shares, Class B Shares, Class C Shares and Institutional Shares. As of September 30, 2008, 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 Fund 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. Purchases of $1 million or more of Class A Shares are not subject to a front-end sales charge but will be subject to a Contingent Deferred Sales Charge (“CDSC”) of 1.00% of the purchase price if redeemed within two years after purchase. This charge is based on the lower of the cost for the shares or their net asset value at the time of redemption. In addition, a CDSC of up to 1.00% of the purchase price of Class A Shares will be charged to the following shareholders who received a sales charge waiver and then redeem their shares within two years after purchase: (i) employees of the Trust, BB&T Corporation and its affiliates, and (ii) shareholders who purchased shares with proceeds from redemptions from another mutual fund complex within 60 days of redemption if a sales charge was paid on such shares. This charge is based on the lower of the cost for the shares or their net asset value at the time of redemption. The Class B Shares of the Funds are offered without any front-end sales charge but will be subject to a CDSC ranging from a maximum of 5.00% if redeemed less than one year after purchase to 0.00% if redeemed more than six years after purchase. The Class C Shares of the Funds are offered without any front-end sales charge but will be subject to a maximum CDSC of 1.00% 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 Trust’s organizational documents, its Officers and Trustees are indemnified against certain liabilities arising out of the performance of their duties to the Trust. In addition, in the normal course of business, the 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.
144
BB&T Funds
Notes to Financial Statements — (continued)
September 30, 2008
| 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 United States generally accepted accounting principles (“GAAP”). 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.
Recent accounting standards — In September 2006, the Financial Accounting Standards Board (“FASB”) issued Statement on Financial Accounting Standards No. 157, “Fair Value Measurements” (“SFAS No. 157”). This standard establishes a single authoritative definition of fair value, sets out a framework for measuring fair value and requires additional disclosures about fair value measurements. SFAS No. 157 applies to fair value measurements already required or permitted by existing standards. SFAS No. 157 is effective for financial statements issued for fiscal years beginning after November 15, 2007 and interim periods within those fiscal years. The changes to current GAAP from the application of SFAS No. 157 relate to the definition of fair value, the methods used to measure fair value, and the expanded disclosures about fair value measurements. As of September 30, 2008, the Funds do not believe the adoption of SFAS No. 157 will impact the financial statement amounts, however, additional disclosures will be required about the inputs used to develop the measurements and the effect of certain of the measurements on changes in net assets for the period.
In March 2008, FASB issued Statement of Financial Accounting Standards No. 161, “Disclosures about Derivative Instruments and Hedging Activities-an amendment of FASB Statement No. 133” (“SFAS No. 161”), was issued. SFAS No. 161 is intended to improve financial reporting for derivative instruments by requiring enhanced disclosure that enables investors to understand how and why an entity uses derivatives, how derivatives are accounted for, and how derivative instruments affect an entity’s results of operations and financial position. In September 2008, FASB Staff Position No. 133-1 and FASB Interpretation No. 45-4, “Disclosures about Credit Derivatives and Certain Guarantees: An Amendment of FASB Statement No. 133 and FASB Interpretation No. 45; and Clarification of the Effective Date of FASB Statement No. 161” (the “FSP”) was issued and is effective for fiscal years and interim periods ending after November 15, 2008. The FSP amends FASB Statement No. 133, “Accounting for Derivative Instruments and Hedging Activities,” to require disclosures by sellers of credit derivatives, including credit derivatives embedded in hybrid instruments. The FSP also clarifies the effective date of SFAS No. 161, whereby disclosures required by SFAS No. 161 are effective for financial statements issued for fiscal years and interim periods beginning after November 15, 2008. Management is continuing to evaluate the impact, if any, that adoption of SFAS No. 161 may have on the financial statements.
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 of the Trust (“Board of Trustees”) to value certain securities, including through the use of electronic and matrix techniques. Short-term obligations without significant credit risk 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 underlying funds invested in by 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 market values based upon the latest available sale price or, absent such a price, by reference to 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 or deemed unreliable (e.g., an approved pricing service does not provide a price, a furnished price is in error, certain stale prices, or an event occurs that materially effects the furnished price) will be valued by the Pricing Committee at fair value determined in good faith under procedures established by and under the general supervision of the Board of Trustees.
145
BB&T Funds
Notes to Financial Statements — (continued)
September 30, 2008
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’s 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 fluctuation 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.
Futures Contracts — The Variable Net Asset Value Funds may invest in financial futures contracts for the purpose of hedging their existing securities or securities that the respective Funds intend 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 September 30, 2008.
Securities Transactions and Related Income — During the period, security transactions are accounted for no later than one business day following the trade date. For financial reporting purposes, however, security transactions are accounted for on trade date of the last business day of the reporting period. Interest income is recognized on the accrual basis and includes, where applicable, the 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 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 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 at least equal to the purchase commitment for payment of the securities purchased. The value of the securities underlying when-issued or forward commitments to purchase
146
BB&T Funds
Notes to Financial Statements — (continued)
September 30, 2008
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 Asset Management, Inc. (“BB&T AM”) or a sub-advisor 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.
Mortgage Dollar Rolls — The Total Return Bond Fund may sell mortgage-backed securities for delivery in the current month and simultaneously contract to repurchase substantially similar (same type, coupon and maturity) securities on a specific future date at an agreed-upon price. The market value of the securities that the Fund is required to purchase may decline below the agreed upon repurchase price of those securities. Pools of mortgages collateralizing those securities may have different prepayment histories than those sold. During the period between the sale and repurchase, the Fund will not be entitled to receive interest and principal payments on the securities sold. Proceeds of the sale will be invested in additional instruments for the Fund, and the income from these investments will generate income for the Fund. If such income does not exceed the income, capital appreciation and gain or loss that would have been realized on the securities sold as part of the dollar roll, the use of this technique will diminish the investment performance of the Fund compared with what the performance would have been without the use of dollar rolls.
Written Options — A 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.
In writing an option, the Funds contract with a specified counterparty to purchase (put options written) or sell (call options written) a specified quantity (notional amount) of an underlying asset at a specified price during a specified period upon demand of the counterparty. A 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 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 sell call options, and the Large Cap Fund, Mid Cap Value Fund, Mid Cap Growth Fund, Small Cap Fund, International Equity Fund, Special Opportunities Equity Fund, Equity Income Fund, Short U.S. Government Fund, Intermediate U.S. Government Fund and Total Return Bond Fund may purchase put options, purchase call options and write secured 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 call options during the year ended September 30, 2008:
| Special Opportunities Equity Fund | Equity Income Fund | |||||||||||||
Covered Call Options | Number of Contracts | Premiums Received | Number of Contracts | Premiums Received | ||||||||||
Balance at beginning of period | 12,024 | $ | 999,154 | 2,177 | $ | 148,681 | ||||||||
Options written | 99,397 | 8,909,939 | 17,560 | 1,188,820 | ||||||||||
Options closed | (48,846 | ) | (3,322,924 | ) | (1,880 | ) | (100,997 | ) | ||||||
Options expired | (30,699 | ) | (2,425,748 | ) | (13,622 | ) | (920,226 | ) | ||||||
Options exercised | (13,714 | ) | (724,877 | ) | (1,100 | ) | (115,324 | ) | ||||||
Balance at end of period | 18,162 | $ | 3,435,544 | 3,135 | $ | 200,954 | ||||||||
147
BB&T Funds
Notes to Financial Statements — (continued)
September 30, 2008
The following is a summary of options outstanding as of September 30, 2008:
Number of | ||||||
Security | Contracts | Fair Value | ||||
Special Opportunities Equity Fund | ||||||
Apache Corp., $155.00, 10/18/08* | 1,400 | $ | (7,000 | ) | ||
Apache Corp., $160.00, 10/18/08 | 100 | (500 | ) | |||
Smithfield Foods, Inc., $30.00, 10/18/08* | 2,500 | (12,500 | ) | |||
Trinity Industries, Inc., $50.00, 10/18/08* | 260 | (1,300 | ) | |||
Yum! Brands, Inc., $40.00, 10/18/08 | 2,175 | (19,575 | ) | |||
Wells Fargo & Co., $35.00, 10/18/08 | 4,515 | (1,399,650 | ) | |||
Weatherford International, Ltd., $52.50, 11/22/08* | 4,000 | (40,000 | ) | |||
Varian Medical Systems, Inc., $60.00, 11/22/08 | 3,212 | (770,880 | ) | |||
| 18,162 | $ | (2,251,405 | ) | |||
Equity Income Fund | ||||||
Abbott Laboratories, $62.50, 11/22/08 | 1,075 | $ | (80,625 | ) | ||
U.S. Bankcorp, $37.50, 12/20/08 | 2,060 | (453,200 | ) | |||
| 3,135 | $ | (533,825 | ) | |||
| * | Security was valued by Board of Trustees. |
Security Loans — The Funds may loan securities secured by collateral in the form of securities issued or guaranteed by the U.S. Government or its agencies on instrumentalities, irrevocable letters of credit, U.S. dollar cash on other forms of collateral as may be agreed to between the Trust and Mellon Bank, N.A., the lending agent (“Mellon”). A Fund may receive compensation for lending securities in the form of fees payable by the borrower or by retaining a portion of the income and earnings from the investment and reinvestment of cash collateral received and held on behalf of the Fund (after payment of a “broker rebate fee” to the borrower). A Fund also continues to receive interest or dividends on the securities loaned. Although security loans are secured at all times by collateral, the loans may not be fully supported if, for example, the instruments in which cash collateral is invested decline in value or the borrower fails to provide additional collateral when required in a timely manner or at all. Concurrently with the delivery of the Fund’s securities to a borrower, Mellon is required to obtain from the borrower collateral equal to at least 102% of the market value of the securities loaned plus accrued interest, in the case of U.S. securities, and at least 105% of the market value of the securities loaned plus accrued interest in the case of foreign securities. If at the close of trading on any business day the market value of the collateral is less than 100% of the market value of such loaned securities as of such business day, the borrower is required to deliver additional collateral equal to not less than 102% of the market value of the securities loaned plus accrued interest in the case of U.S. securities and 105% of the market value of the securities loaned plus accrued interest in the case of foreign securities. Cash collateral received by a Fund (other than the U.S. Treasury Money Market Fund) at September 30, 2008 was invested in the BNY Institutional Cash Reserve Fund (“ICRF”), an unregistered investment pool managed by Mellon, which was invested in bank notes, certificates of deposit, commercial paper, and time deposits. The non cash collateral received by the Funds was in the form of equity securities, U.S. Treasury Notes and Bonds and U.S. Treasury Bills, short-term U.S. dollar-denominated obligations issued by the U.S. Treasury and repurchase agreements collateralized by U.S. Treasury Securities.
148
BB&T Funds
Notes to Financial Statements — (continued)
September 30, 2008
The net asset value of a Fund will be affected by an increase or decrease in the value of the securities loaned and by an increase or decrease in the value of the ICRF or any other investment vehicle in which cash collateral may be invested. At September 30, 2008, the ICRF held investment in Lehman and White Pine Finance, LLC, both of which had defaulted on their obligations during the period. These defaults resulted in the value of the ICRF to be less than the amount of collateral owed back to the borrowing brokers. The difference between the value of the collateral investments in the ICRF and what is owed to the borrowing brokers negatively impacted the NAV of certain Funds at September 30, 2008 by the following amounts per share:
| NAV Impact | |||
Large Cap Fund | $ | 0.01 | |
Mid Cap Value Fund | 0.01 | ||
Mid Cap Growth Fund | 0.01 | ||
Small Cap Fund | 0.04 | ||
Special Opportunities Equity Fund | 0.01 | ||
Equity Income Fund | 0.02 | ||
Short U.S. Government Fund | 0.01 | ||
Intermediate U.S. Government Fund | 0.01 | ||
There may be risks of delay in recovery of the securities or even loss of rights in the collateral should the borrower of the securities fail financially. Another risk from securities lending is that the borrower may not provide additional collateral when required or return the securities when due or when called for by the Fund. The Funds are indemnified from losses resulting from brokers failing to return securities. As the securities lending agent for the Funds, Mellon receives for its services 20% of the revenues earned on the securities lending activities and incurs all expenses. The securities lending agent may make payments to borrowers and placing brokers, who may not be affiliated, directly or indirectly, with the Trust, the adviser or the distributor. In connection with lending securities, a Fund may pay reasonable administrative and custodial fees. The value of the securities on loan, the related collateral and the liability to return the collateral at September 30, 2008, are shown on the Statements of Assets and Liabilities. As of September 30, 2008, the following Funds had loans outstanding:
| Value of Loaned Securities | Value of Non Cash Collateral | Value of Cash Collateral | Average Value on Loan for the period ended September 30, 2008 | |||||||||
Large Cap Fund | $ | 12,622,909 | $ | — | $ | 12,475,482 | $ | 27,908,468 | ||||
Mid Cap Value Fund | 30,668,206 | 1,512,527 | 29,250,879 | 45,674,112 | ||||||||
Mid Cap Growth Fund | 20,443,709 | 75,845 | 19,788,110 | 30,194,626 | ||||||||
Small Cap Fund | 10,121,901 | — | 10,581,863 | 10,307,244 | ||||||||
International Equity Fund | 2,140,307 | 1,300,862 | 894,212 | 1,341,186 | ||||||||
Special Opportunities Equity Fund | 37,141,383 | 325,757 | 35,719,567 | 47,324,791 | ||||||||
Equity Income Fund | 36,474,852 | — | 36,195,033 | 32,573,783 | ||||||||
Short U.S. Government Fund | 4,590,516 | 510,358 | 4,107,031 | 6,824,449 | ||||||||
U.S. Intermediate Government Fund | 6,940,935 | — | 7,057,725 | 5,015,964 | ||||||||
Total Return Bond Fund | 14,681,022 | — | 14,843,452 | 34,676,982 | ||||||||
U.S. Treasury Money Market Fund | 129,654,038 | 174,929,321 | — | 97,700,784 | ||||||||
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 both the Trust and the BB&T Variable Insurance Funds are allocated across the Funds and BB&T Variable Insurance Funds, based upon relative net assets or on another reasonable basis. 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.
Distributions 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 quarterly for the Large Cap Fund,
149
BB&T Funds
Notes to Financial Statements — (continued)
September 30, 2008
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 Fund of Funds. Distributable net realized gains, if any, are declared and distributed at least annually. Distributions to shareholders which exceed net investment income and net realized gains for tax purposes are reported as distributions of capital.
The character of income and gains distributed are determined in accordance with federal income tax regulations, which may differ from GAAP. These “book/tax” differences are either considered temporary or permanent in nature. To the extent these differences are permanent in nature (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. These reclassifications have no effect on net assets or net asset values per share.
As of September 30, 2008 , these reclassifications were as follows:
| Increase/ (Decrease) Paid-in-Capital | Increase/ (Decrease) Net Investment Income(Loss) | Increase/ (Decrease) Realized Gain(Loss) | ||||||||||
Large Cap Fund | $ | — | $ | 550 | $ | (550 | ) | |||||
Mid Cap Value Fund | — | 281 | (281 | ) | ||||||||
Mid Cap Growth Fund | (792,208 | ) | 508,621 | 283,587 | ||||||||
Small Cap Fund | (59,135 | ) | 47,088 | 12,047 | ||||||||
International Equity Fund | — | (675,838 | ) | 675,838 | ||||||||
Special Opportunities Equity Fund | (1,180,750 | ) | 2,000,807 | (820,057 | ) | |||||||
Equity Income Fund | (171,944 | ) | (1,088,920 | ) | 1,260,864 | �� | ||||||
Short U.S. Government Fund | (349,216 | ) | 126,741 | 222,475 | ||||||||
Intermediate U.S. Government Fund | — | 615,409 | (615,409 | ) | ||||||||
Total Return Bond Fund | — | 1,066,279 | (1,066,279 | ) | ||||||||
Kentucky Intermediate Tax-Free Fund | — | (1,176 | ) | 1,176 | ||||||||
Maryland Intermediate Tax-Free Fund | — | (687 | ) | 687 | ||||||||
North Carolina Intermediate Tax-Free Fund | — | (1,583 | ) | 1,583 | ||||||||
South Carolina Intermediate Tax-Free Fund | — | (968 | ) | 968 | ||||||||
Virginia Intermediate Tax-Free Fund | — | (1,471 | ) | 1,471 | ||||||||
West Virginia Intermediate Tax-Free Fund | — | 12,782 | (12,782 | ) | ||||||||
Capital Manager Conservative Growth Fund | — | 441,808 | (441,808 | ) | ||||||||
Capital Manager Moderate Growth Fund | (38,655 | ) | 1,020,483 | (981,828 | ) | |||||||
Capital Manager Growth Fund | — | 990,516 | (990,516 | ) | ||||||||
Capital Manager Equity Fund | (66,231 | ) | 637,511 | (571,280 | ) | |||||||
Credit Enhancements — Certain obligations held in the Funds have credit enhancement or liquidity features that may, under certain circumstances, provide for repayment of principal and interest on the obligation upon demand date, interest rate reset date or final maturity. These enhancements may include: letters of credit; liquidity guarantees; security purchase agreements; tender option purchase agreements; and third party insurance (i.e., AMBAC, FGIC and MBIA).
Federal Income Taxes — 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.
| 3. | Purchases and Sales of Securities: |
Purchases and sales of securities (excluding securities maturing less than one year from acquisition) for the fiscal year ended September 30, 2008 were as follows:
| Purchases | Sales | |||||
Large Cap Fund | $ | 178,437,368 | $ | 380,414,745 | ||
Mid Cap Value Fund | 151,941,300 | 154,485,567 | ||||
Mid Cap Growth Fund | 456,221,296 | 436,732,796 | ||||
Small Cap Fund | 61,345,309 | 95,967,834 | ||||
International Equity Fund | 167,378,039 | 173,193,303 | ||||
Special Opportunities Equity Fund | 209,284,347 | 89,262,046 | ||||
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BB&T Funds
Notes to Financial Statements — (continued)
September 30, 2008
| Purchases | Sales | |||||
Equity Income Fund | $ | 174,263,107 | $ | 61,326,374 | ||
Short U.S. Government Fund | 20,212,115 | 20,469,427 | ||||
Intermediate U.S. Government Fund | 127,719,111 | 140,460,918 | ||||
Total Return Bond Fund | 670,607,131 | 637,757,098 | ||||
Kentucky Intermediate Tax-Free Fund | 9,828,973 | 8,360,753 | ||||
Maryland Intermediate Tax-Free Fund | 18,925,144 | 13,739,172 | ||||
North Carolina Intermediate Tax-Free Fund | 105,554,852 | 95,633,513 | ||||
South Carolina Intermediate Tax-Free Fund | 26,572,858 | 22,410,361 | ||||
Virginia Intermediate Tax-Free Fund | 44,248,110 | 41,268,436 | ||||
West Virginia Intermediate Tax-Free Fund | 35,095,042 | 26,783,776 | ||||
Capital Manager Conservative Growth Fund | 23,093,176 | 22,579,601 | ||||
Capital Manager Moderate Growth Fund | 48,685,039 | 49,427,982 | ||||
Capital Manager Growth Fund | 47,475,436 | 46,314,585 | ||||
Capital Manager Equity Fund | 21,269,636 | 20,993,455 | ||||
Purchases and sales of U.S. Government Securities (excluding securities maturing less than one year from acquisition) for the fiscal year ended September 30, 2008 were as follows:
| Purchases | Sales | |||||
Short U.S. Government Fund | $ | 11,475,515 | $ | 13,246 | ||
Intermediate U.S. Government Fund | 28,865,802 | 28,709,739 | ||||
Total Return Bond Fund | 247,825,478 | 244,285,768 | ||||
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 September 30, 2008, the International Equity Fund and the Prime Money Market Fund held illiquid restricted securities representing 0.24% and 1.27% of net assets, respectively. The illiquid restricted securities held as of September 30, 2008 are identified below:
Security | Acquisition Date | Acquisition Cost | Share Amount | Carrying Value Per Share | Fair Value | ||||||||
International Equity Fund | |||||||||||||
Federal Grid Co., Unified Energy System JSC, GDR | 08/28/2008 | $ | 110,953 | 18,189 | $ | 3 | $ | 59,114 | |||||
Inter Rao Ues OAO, GDR | 08/28/2008 | 23,701 | 3,762 | 4 | 15,048 | ||||||||
Kuzbassenergo OJSC, GDR | 08/28/2008 | 6,599 | 1,251 | 2 | 2,502 | ||||||||
Mosenergo OAO, GDR | 08/28/2008 | 29,440 | 6,039 | 3 | 17,758 | ||||||||
OGK-1 OAO, GDR | 08/28/2008 | 39,394 | 17,316 | 1 | 24,277 | ||||||||
OGK-2 OAO, GDR | 08/28/2008 | 19,575 | 4,500 | 2 | 7,538 | ||||||||
OGK-6 OAO, GDR | 08/28/2008 | 18,365 | 5,247 | 2 | 10,258 | ||||||||
OGK-3 OJSC, GDR | 08/28/2008 | 24,968 | 7,398 | 2 | 11,685 | ||||||||
RusHydro, GDR | 08/28/2008 | 191,124 | 31,077 | 3 | 94,785 | ||||||||
TGK-1 OAO, GDR | 08/28/2008 | 18,737 | 6,876 | 2 | 12,033 | ||||||||
TGK-2, GDR | 08/28/2008 | 11,436 | 1,161 | 9 | 9,869 | ||||||||
TGK-4, GDR | 08/28/2008 | 14,764 | 2,853 | 5 | 13,694 | ||||||||
TGK-6, GDR | 08/28/2008 | 9,019 | 2,754 | 1 | 3,167 | ||||||||
TGK-9 OAO, GDR | 08/28/2008 | 9,072 | 3,024 | 2 | 5,443 | ||||||||
TGK-14, GDR | 08/28/2008 | 2,333 | 288 | 3 | 864 | ||||||||
Unified Energy System Warrants, Expire 12/31/09 | 11/21/2007 | 96,394 | 9 | 4,515 | 40,638 | ||||||||
Unified Energy System Warrants, Expire 12/31/09 | 11/21/2007 | 9,072 | 9 | 316 | 2,839 | ||||||||
Yenisei Territorial Generating Co., OJSC, GDR | 08/28/2008 | 6,889 | 3,096 | 1 | 2,786 | ||||||||
151
BB&T Funds
Notes to Financial Statements — (continued)
September 30, 2008
Security | Acquisition Date | Acquisition Cost | Principal Amount | Carrying Value Per Unit (% of Par) | Fair Value | |||||||||
Prime Money Market Fund | ||||||||||||||
Cal Securitization Trust, Series 2008-1, Class A1, 2.994%, 4/15/09 | 3/14/2008 | $ | 1,527,110 | $ | 1,527,110 | $ | 100.00 | $ | 1,527,110 | |||||
Carl Note Repackaging Trust, Series No. 10, 3.465%, 7/15/09 | 6/18/2008 | 5,587,316 | 5,587,316 | 100.00 | 5,587,316 | |||||||||
Genworth Life Insurance Co., 3.203%, 11/10/08 | 5/8/2008 | 5,000,000 | 5,000,000 | 100.00 | 5,000,000 | |||||||||
Metlife Insurance Co. of Connecticut, 3.129%, 11/19/08 | 8/19/2005 | 5,000,000 | 5,000,000 | 100.00 | 5,000,000 | |||||||||
Metropolitan Life Insurance Co., 3.181%, 11/3/08 | 2/1/2008 | 5,000,000 | 5,000,000 | 100.00 | 5,000,000 | |||||||||
| 4. | Related Party Transactions: |
Investment advisory services are provided to the Funds by BB&T AM. Under the terms of the investment advisory agreement, BB&T AM is entitled to receive fees based on a percentage of the average daily net assets of the Funds. These fees are accrued daily and payable on a monthly basis and are reflected on the Statements of Operations as “Investment advisory fees”. BB&T AM waived investment advisory fees and certain expenses for the Funds referenced below which are not subject to recoupment and are included on the Statements of Operations as “Less expenses reimbursed or waived by the Investment Advisor”.
Information regarding these transactions is as follows for the period ended September 30, 2008:
| Contractual Fee Rate | Fee Rate after Contractual Waivers*(1)(2) | |||||
Large Cap Fund | 0.74 | % | 0.60 | %(3) | ||
Mid Cap Value Fund | 0.74 | % | 0.70 | % | ||
Mid Cap Growth Fund | 0.74 | % | 0.70 | % | ||
Small Cap Fund | 1.00 | % | 0.80 | % | ||
International Equity Fund | 1.00 | % | 0.85 | % | ||
Special Opportunities Equity Fund | 0.80 | % | 0.80 | % | ||
Equity Income Fund | 0.70 | % | 0.70 | % | ||
Short U.S. Government Fund | 0.60 | % | 0.45 | % | ||
Intermediate U.S. Government Fund | 0.60 | % | 0.48 | % | ||
Total Return Bond Fund | 0.60 | % | 0.48 | % | ||
Kentucky Intermediate Tax-Free Fund | 0.60 | % | 0.40 | % | ||
Maryland Intermediate Tax-Free Fund | 0.60 | % | 0.30 | % | ||
North Carolina Intermediate Tax-Free Fund | 0.60 | % | 0.45 | % | ||
South Carolina Intermediate Tax-Free Fund | 0.60 | % | 0.45 | % | ||
Virginia Intermediate Tax-Free Fund | 0.60 | % | 0.45 | % | ||
West Virginia Intermediate Tax-Free Fund | 0.45 | % | 0.45 | % | ||
National Tax-Free Money Market Fund | 0.25 | % | 0.20 | % | ||
Prime Money Market Fund | 0.40 | % | 0.28 | % | ||
U.S. Treasury Money Market Fund | 0.40 | % | 0.26 | % | ||
Capital Manager Conservative Growth Fund | 0.25 | % | 0.00 | % | ||
Capital Manager Moderate Growth Fund | 0.25 | % | 0.00 | % | ||
Capital Manager Growth Fund | 0.25 | % | 0.00 | % | ||
Capital Manager Equity Fund | 0.25 | % | 0.00 | % |
| * | Effective February 1, 2007, BB&T AM contractually agreed to waive a portion of the investment advisory fee as disclosed in the table above. All contractual investment advisory fee waivers are not subject to recoupment in subsequent fiscal periods. |
(1) | For the period February 1, 2007 through January 31, 2009. |
(2) | For all or a portion of the fiscal year ended September 30, 2008 BB&T AM voluntarily waived additional advisory fees. All voluntary investment advisory fee waivers are not subject to recoupment in subsequent fiscal periods, and may be discontinued at any time. |
(3) | Effective September 2, 2008 BB&T AM contractually agreed to reduce their advisory fee from 0.70% to 0.60% for one year. |
Pursuant to a sub-advisory agreement with BB&T AM, Artio Global Management LLC (previously known as Julius Baer Investment Management LLC) serves as the sub-advisor to the International Equity Fund, subject to the general supervision of the Funds’ Board of Trustees and BB&T AM. Pursuant to a sub-advisory agreement with BB&T AM, Federated Investment Management Company (“Federated ICM”) serves as the sub-advisor to the Prime Money Market Fund and the National Tax-Free Money Market Fund, subject to the general supervision of the Funds’ Board of Trustees and BB&TAM. Pursuant to a sub-advisory
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September 30, 2008
agreement with BB&T AM, Scott & Stringfellow, Inc., a wholly owned subsidiary of BB&T Corporation, serves as the sub-advisor to the Special Opportunities Equity Fund and the Equity Income Fund, subject to the general supervision of the Funds’ Board of Trustees and BB&T AM. Pursuant to a sub-advisory agreement with BB&T AM, 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 AM. For their services, sub-advisors are entitled to a fee, payable by BB&T AM.
BB&T AM serves as the administrator to the Funds pursuant to the administration agreement effective as of April 23, 2007. The Funds pay their portion of a fee to BB&T AM for providing administration services based on the aggregate assets of the Funds and the BB&T Variable Insurance Funds, excluding the assets of the Fund of Funds, at a rate of 0.11% on the first $3.5 billion of average net assets; 0.075% on the next $1 billion of average net assets; 0.06% on the next $1.5 billion of average net assets; and 0.04% of average net assets over $6 billion. This fee is accrued daily and payable on a monthly basis. Expenses incurred are reflected on the Statements of Operations as “Administration fees”. Pursuant to a sub-administration agreement with BB&TAM, PNC Global Investment Servicing (U.S.) Inc. (“PNC”), formerly known as PFPC Inc., serves as the sub-administrator to the Funds subject to the general supervision of the Board of Trustees and BB&T AM. For these services, PNC is entitled to a fee payable by BB&T AM.
PNC serves as the Funds’ fund accountant and transfer agent and receives compensation by the Funds for these services. Expenses incurred are reflected on the Statements of Operations as “Fund accounting fees” and “Transfer agent fees”.
BB&TAM’s Chief Compliance Officer (“CCO”) serves as the Funds’ CCO. The CCO’s compensation is reviewed and approved by the Funds’ Board of Trustees and paid by BB&T AM. However, the Funds reimburse BB&T AM for their allocable portion of the CCO’s salary. Expenses incurred for the Funds are reflected on the Statements of Operations as “Compliance service fees”.
For the year ended September 30, 2008, the Funds’ paid $503,865 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 AM Distributors, Inc. (“BBTAMD”) serves as distributor to each Fund pursuant to a underwriting agreement, effective as of April 23, 2007. BBTAMD has contractually agreed to waive a portion of the Class A shares distribution fees throughout the period. BBTAMD 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 U.S. Treasury Money Market. Distribution fees totaling $293,603 were waived for the period ended September 30, 2008. Distribution fee waivers are included in the Statements of Operations as “Less expenses reimbursed or 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 BBTAMD to pay banks, broker dealers and other institutions, including affiliates of the advisor. As distributor, BBTAMD, is entitled to receive commissions on sales of shares of the Variable Net Asset Value Funds. For the period ended September 30, 2008, BBTAMD received $755,649 from commissions earned on sales of shares of the Funds’ Variable Net Asset Value Funds. Commissions paid to affiliated broker-dealers during the fiscal year ended September 30, 2008 were $892,306.
The Adviser and/or its affiliates may pay out of their own bona fide profits 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 or 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 Trustees who are not interested persons (as defined in the 1940 Act) of the Trust who serve on the Board are compensated at the annual rate
153
BB&T Funds
Notes to Financial Statements — (continued)
September 30, 2008
of $30,000 plus $5,000 for each regularly scheduled quarterly meeting attended, $4,000 for each special meeting attended in person and $3,000 for each special meeting attended by telephone. Each Trustee serving on a Committee of the Board of Trustees receives a fee of $4,000 for each Committee meeting attended in person and $3,000 for each Committee meeting attended by telephone, plus reimbursement for certain out of pocket expenses. Additionally, the Chairman of the Board and Audit Committee Chairman each receive an annual retainer of $10,000, and the Chairman of the Nominations Committee receives $1,000 for each meeting attended. The fees are allocated across the Funds and the BB&T Variable Insurance Funds based upon relative net assets.
| 5. | 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.
| 6. | Line of Credit: |
U.S. Bank, N.A. has made available a credit facility to the Funds, pursuant to a Credit Agreement (the “Agreement”). The primary purpose of the Agreement is to allow the Funds to avoid security liquidations that BB&T AM believes are unfavorable to shareholders. Outstanding principal amounts under the Agreement bear interest at an interest rate equal to the Prime Rate minus 2.00%. During the fiscal year ended September 30, 2008 the following Funds utilized lines of credit:
| Average Interest Rate | Average Loan Balance | Number of Days Outstanding | Interest Expense Incurred | Maximum Amount Borrowed During the Period | ||||||||||
Mid Cap Growth Fund | 5.75 | % | $ | 875,000 | 1 | $ | 140 | $ | 875,000 | |||||
Intermediate U.S. Government Fund | 3.04 | % | 601,429 | 7 | 358 | 976,000 | ||||||||
Kentucky Intermediate Tax-Free Fund | 3.59 | % | 281,353 | 17 | 402 | 559,000 | ||||||||
Maryland Intermediate Tax-Free Fund | 3.00 | % | 26,000 | 3 | 7 | 26,000 | ||||||||
South Carolina Intermediate Tax-Free Fund | 4.50 | % | 79,000 | 3 | 30 | 79,000 | ||||||||
Virginia Intermediate Tax-Free Fund | 4.00 | % | 546,000 | 1 | 61 | 546,000 | ||||||||
West Virginia Intermediate Tax-Free Fund | 4.00 | % | 45,000 | 2 | 10 | 54,000 | ||||||||
| 7. | Federal Income Tax Information: |
The Funds adopted the provisions of FASB Interpretation No. 48 (“FIN48”), Accounting for Uncertainty in Income Taxes, on June 29, 2007 and FIN48 was applied to all open tax years (September 30, 2005, September 30, 2006, September 30, 2007 and September 30, 2008). The implementation of FIN48 resulted in no material liability for unrecognized tax benefits and no material change to the beginning net asset value of the Funds. As of and during the period ended June 30, 2008, the Funds did not have a liability for any unrecognized tax benefits. The Funds recognize interest and penalties, if any, related to unrecognized tax benefits as income tax expense in the Statements of Operations. During the period, the Funds did not incur any interest or penalties.
At September 30, 2008, 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 | ||||
Mid Cap Value Fund | $ | 233,334 | 2016 | ||
Small Cap Fund* | 4,700,830 | 2009 | |||
Small Cap Fund* | 2,350,415 | 2010 | |||
Small Cap Fund | 982,080 | 2016 | |||
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 | |||
Short U.S. Government Fund | 1,246,269 | 2014 | |||
Short U.S. Government Fund | 3,940,976 | 2015 | |||
Short U.S. Government Fund | 160,380 | 2016 | |||
Intermediate U.S. Government Fund | 108,521 | 2013 | |||
Intermediate U.S. Government Fund | 4,243,104 | 2014 | |||
Intermediate U.S. Government Fund | 10,119,332 | 2016 | |||
Total Return Bond Fund | 6,426,073 | 2015 | |||
| * | The amount of these losses that may be utilized are limited to $2,350,415 on an annual basis as a result of certain ownership changes in 2006. |
154
BB&T Funds
Notes to Financial Statements — (continued)
September 30, 2008
Capital loss carryforwards utilized in the current year were $4,313,974, $17,287 and $125,361 for the Total Return Bond Fund, Kentucky Intermediate Tax-Free Fund and Maryland Intermediate Tax-Free Fund, respectively. Short U.S. Government Fund had $349,217 expire in the current year.
The tax character of distributions paid to shareholders during the fiscal year ended September 30, 2008, were as follows:
| Distributions paid from | |||||||||||||||
| Ordinary Income | Net Long-Term Gains | Total Taxable Distributions | Tax Exempt Distributions | Total Distributions Paid* | |||||||||||
Large Cap Fund | $ | 13,358,739 | $ | 86,391,629 | $ | 99,750,368 | $ | — | $ | 99,750,368 | |||||
Mid Cap Value Fund | 12,060,136 | 15,851,309 | 27,911,445 | — | 27,911,445 | ||||||||||
Mid Cap Growth Fund | 4,642,107 | 9,720,681 | 14,362,788 | — | 14,362,788 | ||||||||||
Small Cap Fund | 571,040 | 6,961,030 | 7,532,070 | — | 7,532,070 | ||||||||||
International Equity Fund | 3,556,351 | 12,199,987 | 15,756,338 | — | 15,756,338 | ||||||||||
Special Opportunities Equity Fund | 4,562,577 | 9,456,338 | 14,018,915 | — | 14,018,915 | ||||||||||
Equity Income Fund | 5,642,983 | 6,945,951 | 12,588,934 | — | 12,588,934 | ||||||||||
Short U.S. Government Fund | 1,910,471 | — | 1,910,471 | — | 1,910,471 | ||||||||||
Intermediate U.S. Government Fund | 6,118,277 | — | 6,118,277 | — | 6,118,277 | ||||||||||
Total Return Bond Fund | 21,516,002 | — | 21,516,002 | — | 21,516,002 | ||||||||||
Kentucky Intermediate Tax-Free Fund | — | — | — | 529,694 | 529,694 | ||||||||||
Maryland Intermediate Tax-Free Fund | — | — | — | 423,473 | 423,473 | ||||||||||
North Carolina Intermediate Tax-Free Fund | 76,486 | 397,834 | 474,320 | 4,235,863 | 4,710,183 | ||||||||||
South Carolina Intermediate Tax-Free Fund | 61,456 | 95,804 | 157,260 | 636,262 | 793,522 | ||||||||||
Virginia Intermediate Tax-Free Fund | 17,619 | 357,893 | 375,512 | 2,772,996 | 3,148,508 | ||||||||||
West Virginia Intermediate Tax-Free Fund | 15,299 | 120,896 | 136,195 | 2,536,318 | 2,672,513 | ||||||||||
National Tax Free Money Market Fund | — | — | — | 2,644,375 | 2,644,375 | ||||||||||
Prime Money Market Fund | 55,744,159 | — | 55,744,159 | — | 55,744,159 | ||||||||||
U.S. Treasury Money Market Fund | 19,611,212 | — | 19,611,212 | — | 19,611,212 | ||||||||||
Capital Manager Conservative Growth Fund | 2,450,477 | 4,214,835 | 6,665,312 | — | 6,665,312 | ||||||||||
Capital Manager Moderate Growth Fund | 3,380,453 | 8,858,612 | 12,239,065 | — | 12,239,065 | ||||||||||
Capital Manager Growth Fund | 2,560,561 | 8,405,300 | 10,965,861 | — | 10,965,861 | ||||||||||
Capital Manager Equity Fund | 1,314,812 | 5,384,279 | 6,699,091 | — | 6,699,091 | ||||||||||
The tax character of distributions paid to shareholders during the fiscal year ended September 30, 2007, were as follows:
| Distributions paid from | |||||||||||||||
| Ordinary Income | Net Long-Term Gains | Total Taxable Distributions | Tax Exempt Distributions | Total Distributions Paid* | |||||||||||
Large Cap Fund | $ | 19,031,037 | $ | 92,472,188 | $ | 111,503,225 | $ | — | $ | 111,503,225 | |||||
Mid Cap Value Fund | 9,036,233 | 1,721,217 | 10,757,450 | — | 10,757,450 | ||||||||||
Mid Cap Growth Fund | 203,086 | 17,122,359 | 17,325,445 | — | 17,325,445 | ||||||||||
Small Cap Fund | 567,872 | 5,392,932 | 5,960,804 | — | 5,960,804 | ||||||||||
International Equity Fund | 2,478,568 | 62,383,127 | 64,861,695 | — | 64,861,695 | ||||||||||
Special Opportunities Equity Fund | 5,241,732 | 12,369,307 | 17,611,039 | — | 17,611,039 | ||||||||||
Equity Income Fund | 4,383,383 | 4,858,741 | 9,242,124 | — | 9,242,124 | ||||||||||
Short U.S. Government Fund | 2,310,932 | — | 2,310,932 | — | 2,310,932 | ||||||||||
Intermediate U.S. Government Fund | 8,739,525 | — | 8,739,525 | — | 8,739,525 | ||||||||||
Total Return Bond Fund | 21,203,214 | — | 21,203,214 | — | 21,203,214 | ||||||||||
Kentucky Intermediate Tax-Free Fund | 152 | — | 152 | 492,872 | 493,024 | ||||||||||
Maryland Intermediate Tax-Free Fund | 26 | — | 26 | 349,618 | 349,644 | ||||||||||
North Carolina Intermediate Tax-Free Fund | 41,099 | 93,127 | 134,226 | 4,024,577 | 4,158,803 | ||||||||||
South Carolina Intermediate Tax-Free Fund | 217 | 27,235 | 27,452 | 675,927 | 703,379 | ||||||||||
Virginia Intermediate Tax-Free Fund | 30,930 | 149,945 | 180,875 | 2,828,201 | 3,009,076 | ||||||||||
West Virginia Intermediate Tax-Free Fund | 5,787 | 209,596 | 215,383 | 2,632,009 | 2,847,392 | ||||||||||
National Tax Free Money Market Fund | — | — | — | 3,646,154 | 3,646,154 | ||||||||||
Prime Money Market Fund | 77,968,808 | 4,504 | 77,973,312 | — | 77,973,312 | ||||||||||
U.S. Treasury Money Market Fund | 33,043,638 | — | 33,043,638 | — | 33,043,638 | ||||||||||
Capital Manager Conservative Growth Fund | 1,889,653 | — | 1,889,653 | — | 1,889,653 | ||||||||||
155
BB&T Funds
Notes to Financial Statements — (continued)
September 30, 2008
| Distributions paid from | ||||||||||
| Ordinary Income | Net Long-Term Gains | Total Taxable Distributions | Tax Exempt Distributions | Total Distributions Paid* | ||||||
Capital Manager Moderate Growth Fund | 1,665,967 | 1,744,909 | 3,410,876 | — | 3,410,876 | |||||
Capital Manager Growth Fund | 909,564 | 1,662,327 | 2,571,891 | — | 2,571,891 | |||||
Capital Manager Equity Fund | 288,761 | 2,319,841 | 2,608,602 | — | 2,608,602 | |||||
| * | Total Distributions paid may differ from the Statements of Changes in Net Assets because distributions are recognized when actually paid for tax purposes. |
As of September 30, 2008, the components of accumulated earnings (deficit) on a tax basis was as follows:
| Undistributed Ordinary Income/Tax Exempt Income | Undistributed Long Term Capital Gains (Losses) | Accumulated Earnings | Distributions Payable* | Accumulated Capital and Other Losses | Unrealized Appreciation (Depreciation)* | Total Accumulated Earnings (Deficit) | |||||||||||||||||||
Large Cap Fund | $ | 296,710 | $ | — | $ | 296,710 | $ | — | $ | (109,351,396 | ) | $ | 23,230,690 | $ | (85,823,996 | ) | |||||||||
Mid Cap Value Fund | 259,209 | — | 259,209 | — | (12,338,961 | ) | (33,753,531 | ) | (45,833,283 | ) | |||||||||||||||
Mid Cap Growth Fund | — | 6,199,524 | 6,199,524 | — | — | (15,897,739 | ) | (9,698,215 | ) | ||||||||||||||||
Small Cap Fund | — | — | — | — | (15,979,336 | ) | 2,710,602 | (13,268,734 | ) | ||||||||||||||||
International Equity Fund | 89,566 | — | 89,566 | — | (16,758,198 | ) | (22,633,112 | ) | (39,301,744 | ) | |||||||||||||||
Special Opportunities Equity Fund | 1,771,728 | 12,366,207 | 14,137,935 | — | — | (13,212,515 | ) | 925,420 | |||||||||||||||||
Equity Income Fund | 990,425 | 722,290 | 1,712,715 | (626,624 | ) | — | (16,181,466 | ) | (15,095,375 | ) | |||||||||||||||
Short U.S. Government Fund | 190,577 | — | 190,577 | (56,396 | ) | (8,059,076 | ) | 61,278 | (7,863,617 | ) | |||||||||||||||
Intermediate U.S. Government Fund | 2,329,087 | — | 2,329,087 | (241,136 | ) | (14,470,957 | ) | (1,646,157 | ) | (14,029,163 | ) | ||||||||||||||
Total Return Bond Fund | 1,809,746 | — | 1,809,746 | (1,194,267 | ) | (6,426,073 | ) | (14,238,098 | ) | (20,048,692 | ) | ||||||||||||||
Kentucky Intermediate Tax-Free Fund | 114,834 | 78,997 | 193,831 | (35,184 | ) | — | (348,380 | ) | (189,733 | ) | |||||||||||||||
Maryland Intermediate Tax-Free Fund | 102,347 | 65,809 | 168,156 | (35,358 | ) | — | (395,371 | ) | (262,573 | ) | |||||||||||||||
North Carolina Intermediate Tax-Free Fund | 1,203,644 | 450,961 | 1,654,605 | (342,959 | ) | — | (1,643,487 | ) | (331,841 | ) | |||||||||||||||
South Carolina Intermediate Tax-Free Fund | 253,710 | 140,118 | 393,828 | (39,146 | ) | — | (621,160 | ) | (266,478 | ) | |||||||||||||||
Virginia Intermediate Tax-Free Fund | 484,654 | 440,102 | 924,756 | (218,729 | ) | — | (246,215 | ) | 459,812 | ||||||||||||||||
West Virginia Intermediate Tax-Free Fund | 231,211 | 1,181 | 232,392 | (185,144 | ) | (5,584 | ) | (1,384,159 | ) | (1,342,495 | ) | ||||||||||||||
National Tax-Free Money Market Fund | 421,374 | 745 | 422,119 | (409,976 | ) | — | — | 12,143 | |||||||||||||||||
Prime Money Market Fund | 1,802,527 | — | 1,802,527 | (1,790,139 | ) | — | — | 12,388 | |||||||||||||||||
U.S. Treasury Money Market Fund | 400,664 | — | 400,664 | (400,418 | ) | — | — | 246 | |||||||||||||||||
Capital Manager Conservative Growth Fund | 3,830 | 840,501 | 844,331 | (3,851 | ) | — | (5,947,681 | ) | (5,107,201 | ) | |||||||||||||||
Capital Manager Moderate Growth Fund | — | — | — | (3,743 | ) | (278,018 | ) | (11,458,794 | ) | (11,740,555 | ) | ||||||||||||||
Capital Manager Growth Fund | 3,209 | — | 3,209 | (560 | ) | (1,102,405 | ) | (11,266,375 | ) | (12,366,131 | ) | ||||||||||||||
Capital Manager Equity Fund | — | — | — | (1,432 | ) | (732,363 | ) | (6,697,563 | ) | (7,431,358 | ) | ||||||||||||||
| * | Distributions Payable may differ from the Statements of Assets and Liabilities because distributions are recognized when actually paid for tax purposes. The primary differences between book basis and tax basis unrealized appreciation/(depreciation) were due to the deferral of losses on wash sales, mark-to-market adjustments on passive foreign investment companies and constructive sales on hedged positions, basis adjustments on partnership interests and the deferral of market discount and premium until point of sale. |
156
BB&T Funds
Notes to Financial Statements — (continued)
September 30, 2008
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, 2008:
| Post-October Losses | |||
Large Cap Fund | $ | 109,351,396 | |
Mid Cap Value Fund | 12,105,627 | ||
Small Cap Fund | 7,946,011 | ||
International Equity Fund | 16,758,198 | ||
West Virginia Intermediate Tax-Free Fund | 5,584 | ||
Capital Manager Moderate Growth Fund | 278,018 | ||
Capital Manager Growth Fund | 1,102,405 | ||
Capital Manager Equity Fund | 732,363 | ||
At September 30, 2008, 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 | $ | 290,833,071 | $ | 48,412,467 | $ | (25,181,777 | ) | $ | 23,230,690 | |||||
Mid Cap Value Fund | 260,129,392 | 13,084,523 | (46,838,054 | ) | (33,753,531 | ) | ||||||||
Mid Cap Growth Fund | 211,930,211 | 5,773,379 | (21,671,118 | ) | (15,897,739 | ) | ||||||||
Small Cap Fund | 48,766,860 | 5,196,286 | (2,485,684 | ) | 2,710,602 | |||||||||
International Equity Fund | 133,384,089 | 3,891,108 | (26,150,519 | ) | (22,259,411 | ) | ||||||||
Special Opportunities Equity Fund | 421,752,613 | 36,459,046 | (50,855,700 | ) | (14,396,654 | ) | ||||||||
Equity Income Fund | 340,615,188 | 10,786,801 | (26,635,396 | ) | (15,848,595 | ) | ||||||||
Short U.S. Government Fund | 52,925,119 | 538,168 | (476,890 | ) | 61,278 | |||||||||
Intermediate U.S. Government Fund | 130,836,987 | 902,620 | (2,548,777 | ) | (1,646,157 | ) | ||||||||
Total Return Bond Fund | 479,932,517 | 3,205,419 | (17,443,517 | ) | (14,238,098 | ) | ||||||||
Kentucky Intermediate Tax-Free Fund | 16,525,963 | 97,916 | (446,296 | ) | (348,380 | ) | ||||||||
Maryland Intermediate Tax-Free Fund | 16,481,718 | 66,430 | (461,801 | ) | (395,371 | ) | ||||||||
North Carolina Intermediate Tax-Free Fund | 124,166,089 | 1,020,984 | (2,664,471 | ) | (1,643,487 | ) | ||||||||
South Carolina Intermediate Tax-Free Fund | 20,741,153 | 128,090 | (749,250 | ) | (621,160 | ) | ||||||||
Virginia Intermediate Tax-Free Fund | 79,038,214 | 1,020,547 | (1,266,762 | ) | (246,215 | ) | ||||||||
West Virginia Intermediate Tax-Free Fund | 73,664,094 | 585,437 | (1,969,596 | ) | (1,384,159 | ) | ||||||||
National Tax-Free Money Market Fund | 143,809,289 | — | — | — | ||||||||||
Prime Money Market Fund | 1,738,567,984 | — | — | — | ||||||||||
U.S. Treasury Money Market Fund | 1,198,443,788 | — | — | — | ||||||||||
Capital Manager Conservative Growth Fund | 57,031,954 | — | (5,947,681 | ) | (5,947,681 | ) | ||||||||
Capital Manager Moderate Growth Fund | 75,212,303 | — | (11,458,794 | ) | (11,458,794 | ) | ||||||||
Capital Manager Growth Fund | 60,638,123 | — | (11,266,375 | ) | (11,266,375 | ) | ||||||||
Capital Manager Equity Fund | 31,871,453 | — | (6,697,563 | ) | (6,697,563 | ) | ||||||||
| 8. | Subsequent Event: |
On October 6, 2008, the Board authorized the Money Market Funds, to apply for participation in the U.S. Department of the Treasury’s Temporary Guarantee Program for Money Market Funds (the “Program”). Subject to certain conditions and limitations, in the event that the per share value of a Money Market Fund falls below $0.995 and the Money Market Fund liquidates its holdings, the Program will provide coverage to shareholders in the Money Market Fund for up to $1.00 per share for the lesser of either the number of shares the investor held in the Fund at the close of business on September 19, 2008 or the number of shares the investor held the date the per share value fell below $0.995. Shares acquired by investors after September 19, 2008 generally are not eligible for protection under the Program.
The Program is funded from assets in the Exchange Stabilization Fund (the “ESF”). Payments to investors under the Program will depend on the availability of assets in the ESF, which, as of September 30, 2008, total approximately $50 billion. The U.S. Department of the Treasury and the Secretary of the Treasury have the authority to use assets from the ESF for purposes other than those of the Program.
157
BB&T Funds
Notes to Financial Statements — (continued)
September 30, 2008
Participation in the initial three months of the Program (i.e., until December 18, 2008) required a non-refundable payment to the U.S. Department of the Treasury in the amount of 0.01% based on the number of outstanding shares of each Money Market Fund as of September 19, 2008. This expense will be borne by the Money Market Funds without regard to any expense limitation currently in effect for the Funds. The U.S. Treasury Money Market Fund, Prime Money Market Fund, and National Tax-Free Money Market Fund paid $108,228, $170,569 and $14,778, respectively, to participate in the Program which will be amortized through December 18, 2008.
The Secretary of the Treasury may extend the Program beyond its initial three-month term through the close of business on September 18, 2009. If the Program is extended, the Money Market Funds will consider whether to continue to participate.
158
Report of Independent Registered Public Accounting Firm
To the Shareholders and Board of Trustees of BB&T Funds:
We have audited the accompanying statements of assets and liabilities of BB&T Funds – Large Cap Fund, Mid Cap Value Fund, Mid Cap Growth Fund, Small Cap Fund, International Equity Fund, Special Opportunities Equity Fund, Equity Income Fund, Short U.S. Government Fund, Intermediate U.S. Government Fund, 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, West Virginia Intermediate Tax-Free Fund, Prime Money Market Fund, U.S. Treasury Money Market Fund, National Tax-Free Money Market Fund, Capital Manager Conservative Growth Fund, Capital Manager Moderate Growth Fund, Capital Manager Growth Fund, and Capital Manager Equity Fund (collectively, the “Funds”), including the schedules of portfolio investments, as of September 30, 2008, and the related statements of operations for the year then ended, the statements of changes in net assets for each of the years in the two-year period then ended, and the financial highlights for each of the years or periods in the five-year period then ended. These financial statements and financial highlights are the responsibility of the Funds’ management. Our responsibility is to express an opinion on these financial statements and financial highlights based on our audits.
We conducted our audits in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements and financial highlights are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. Our procedures included confirmation of securities owned as of September 30, 2008, by correspondence with the custodian, transfer agent of the underlying funds and brokers or by other appropriate auditing procedures where replies from brokers were not received. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion.
In our opinion, the financial statements and financial highlights referred to above present fairly, in all material respects, the financial position of the Funds as of September 30, 2008, the results of their operations for the year then ended, the changes in their net assets for each of the years in the two-year period then ended, and the financial highlights for each of the years or periods in the five-year period then ended, in conformity with U.S. generally accepted accounting principles.
 |
| New York, NY |
| November 26, 2008 |
159
September 30, 2008
Other Federal Income Tax Information (Unaudited)
For shareholders that do not have a September 30, 2008 tax year end, this notice is for informational purposes only. For shareholders with a September 30, 2008 tax year end, please consult your tax advisor as to the pertinence of this notice. For the fiscal year ended September 30, 2008, each Fund is designating the following items with regard to distributions paid during the year. The information reported herein may differ from the information and distributions taxable to the shareholders for the calendar year ending December 31, 2008. Complete information will be reported in conjunction with your 2008 Form 1099-DIV.
For the fiscal year ended September 30, 2008, certain dividends paid by the Funds may be subject to a maximum tax rate of 15% as provided for by the Jobs and Growth Tax Reconciliation Act of 2003. The Funds intend to designate the maximum amount allowable as taxed at a maximum rate of 15%.
For the fiscal year ended September 30, 2008, the percentages of the following Funds total ordinary income dividends paid by the Funds constitute Qualified Dividend Income of :
| Qualified Dividend Income | |||
Large Cap Fund | 81.63 | % | |
Mid Cap Value Fund | 20.20 | % | |
Mid Cap Growth Fund | 6.96 | % | |
Small Cap Fund | 19.33 | % | |
International Equity Fund | 71.65 | % | |
Special Opportunities Equity Fund | 12.91 | % | |
Equity Income Fund | 98.31 | % | |
Capital Manager Conservative Growth Fund | 86.82 | % | |
Capital Manager Moderate Growth Fund | 25.49 | % | |
Capital Manager Growth Fund | 34.47 | % | |
Capital Manager Equity Fund | 45.01 | % |
The percentage represents “Qualified Interest Income” as created by the American Jobs Creation Act of 2004 and is reflected as a percentage of income distributions that is exempt from U.S. withholding tax when paid to foreign investors.
For the fiscal year ended September 30, 2008, the percentages of the following Funds dividends from tax basis net investment income constitute Qualified Interest Dividends:
| Qualified Interest Dividends | |||
Large Cap Fund | 3.90 | % | |
Mid Cap Value Fund | 13.28 | % | |
International Equity Fund | 5.01 | % | |
Equity Income Fund | 4.63 | % | |
Short U.S. Government Fund | 98.88 | % | |
Intermediate U.S. Government Fund | 100.00 | % | |
Total Return Bond Fund | 100.00 | % | |
North Carolina Intermediate Tax-Free Fund | 100.00 | % | |
Virginia Intermediate Tax-Free Fund | 100.00 | % | |
West Virginia Intermediate Tax-Free Fund | 100.00 | % | |
Prime Money Market Fund | 100.00 | % | |
U.S. Treasury Money Market Fund | 100.00 | % | |
Capital Manager Conservative Growth Fund | 14.39 | % | |
Capital Manager Moderate Growth Fund | 57.24 | % | |
Capital Manager Growth Fund | 41.94 | % | |
Capital Manager Equity Fund | 14.19 | % |
160
BB&T Funds
September 30, 2008
The percentage represents “Qualified Short-Term Capital Gain” as created by the American Jobs Creation Act of 2004 and is reflected as a percentage of total ordinary income dividends paid that is exempt from U.S. withholding tax when paid to foreign investors.
For the fiscal year ended September 30, 2008, the percentages of the following Funds total ordinary income dividends paid by the Funds constitute Short-Term Capital Gain Dividends:
| Short-Term Capital Gain Dividends | |||
Large Cap Fund | 57.82 | % | |
Mid Cap Value Fund | 93.73 | % | |
Mid Cap Growth Fund | 100.00 | % | |
Small Cap Fund | 100.00 | % | |
International Equity Fund | 76.42 | % | |
Special Opportunities Equity Fund | 100.00 | % | |
Equity Income Fund | 8.05 | % | |
North Carolina Intermediate Tax-Free Fund | 98.77 | % | |
South Carolina Intermediate Tax-Free Fund | 100.00 | % | |
Virginia Intermediate Tax-Free Fund | 85.87 | % | |
Capital Manager Moderate Growth Fund | 8.05 | % | |
Capital Manager Growth Fund | 9.01 | % | |
Capital Manager Equity Fund | 11.26 | % |
For corporate shareholders, the following percentage of the total ordinary income dividends paid during the fiscal year ended September 30, 2008, qualify for the corporate dividends received deduction for the following Funds:
| Dividends Reduction Deduction | |||
Large Cap Fund | 80.39 | % | |
Mid Cap Value Fund | 19.82 | % | |
Mid Cap Growth Fund | 5.53 | % | |
Small Cap Fund | 18.10 | % | |
International Equity Fund | 0.36 | % | |
Special Opportunities Equity Fund | 12.58 | % | |
Equity Income Fund | 78.80 | % | |
Capital Manager Conservative Growth Fund | 57.14 | % | |
Capital Manager Moderate Growth Fund | 18.60 | % | |
Capital Manager Growth Fund | 80.45 | % | |
Capital Manager Equity Fund | 46.83 | % |
During the fiscal year ended September 30, 2008, the following amounts paid by the Funds constitute exempt interest dividends:
| Amount | |||
Kentucky Intermediate Tax-Free Fund | $ | 529,694 | |
Maryland Intermediate Tax-Free Fund | 423,473 | ||
North Carolina Intermediate Tax-Free Fund | 4,235,863 | ||
South Carolina Intermediate Tax-Free Fund | 636,262 | ||
Virginia Intermediate Tax-Free Fund | 2,772,996 | ||
West Virginia Intermediate Tax-Free Fund | 2,536,318 | ||
National Tax-Free Money Market Fund | 2,644,375 | ||
During the fiscal year ended September 30, 2008, the following Funds designate their respective amounts from Fund-level net long-term capital gains as capital gains dividends:
| Amount | |||
Large Cap Fund | $ | 86,391,629 | |
Mid Cap Value Fund | 15,851,309 | ||
161
BB&T Funds
September 30, 2008
| Amount | ||
Mid Cap Growth Fund | 9,720,681 | |
Small Cap Fund | 6,961,030 | |
International Equity Fund | 12,199,987 | |
Special Opportunities Equity Fund | 9,456,338 | |
Equity Income Fund | 6,945,951 | |
North Carolina Intermediate Tax-Free Fund | 397,834 | |
South Carolina Intermediate Tax-Free Fund | 95,804 | |
Virginia Intermediate Tax-Free Fund | 357,893 | |
West Virginia Intermediate Tax-Free Fund | 120,896 | |
Capital Manager Conservative Growth Fund | 4,214,835 | |
Capital Manager Moderate Growth Fund | 8,858,612 | |
Capital Manager Growth Fund | 8,405,300 | |
Capital Manager Equity Fund | 5,384,279 |
For the fiscal year ended September 30, 2008, the percentages of the following Funds investment company taxable income were derived from U.S. Treasury securities:
| U.S. Government Income | |||
Short U.S. Government Fund | 12.59 | % | |
Intermediate U.S. Government Fund | 10.08 | % | |
Total Return Bond Fund | 7.53 | % | |
U.S. Treasury Money Market Fund | 89.99 | % |
The Fund has elected to pass through to their shareholders the foreign taxes paid for the fiscal year ended September 30, 2008 as follows:
| Foreign Dividend Income | Foreign Taxes Paid | |||||
International Equity Fund | $ | 3,582,913 | $ | 370,178 | ||
162
BB&T Funds
September 30, 2008
Special Meeting of Shareholders (Unaudited)
At a Special Meeting of Shareholders of the BB&T International Equity Fund (the “International Equity Fund”), a series of BB&T Funds, held on June 11, 2008, shareholders of the International Equity Fund voted to approve an Investment Sub-Advisory Agreement between BB&T Asset Management, Inc. and Artio Global Management LLC (formerly, Julius Baer Investment Management LLC) with respect to the International Equity Fund. The results of the voting were as follows:
| Affirmative | Against | Abstain | ||
| 17,209,763 | 49,233 | 19,826 |
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 30th 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 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 Room in Washington, D.C. Information on the operation of the Public Reference Room may be obtained by calling 1-800-SEC-0330.
163
BOARD CONSIDERATION OF ADVISORY AND SUB-ADVISORY AGREEMENTS (UNAUDITED)
The Board of Trustees, at a meeting held on August 25-26, 2008, formally considered the continuance of the Trust’s investment advisory agreement with BB&T Asset Management, Inc. (“BB&TAM”), which serves as investment adviser to all funds of the Trust (except the Sterling Capital Small Cap Value Fund). At that same meeting, the Board of Trustees considered the continuance of sub-advisory agreements of BB&TAM with Scott & Stringfellow, Inc. (“Scott & Stringfellow”) with respect to the Special Opportunities Equity Fund and the Equity Income Fund; Federated Investment Management Company (“Federated”) with respect to the National Tax-Free Money Market Fund and the Prime Money Market Fund; Sterling Capital Management LLC (“Sterling Capital”) with respect to the Mid CapValue Fund and the Total Return Bond Fund; and Artio Global Management LLC (“Artio”) with respect to the International Equity Fund. All the above referenced agreements are collectively the “Advisory Agreements” and are performed by the “Advisers”; the action considered was the “Continuance” of the Advisory Agreements.
The Trustees reviewed extensive material in connection with their consideration of the Continuance, including data from an independent provider of mutual fund data (as assembled by the Funds’ administrator), which included comparisons with industry averages for comparable funds for advisory fees, Rule 12b-1 fees, and total fund expenses. The data reflected BB&TAM fee waivers in place, as well as BB&TAM’s contractual investment advisory fee levels. The Board was assisted in its review by independent legal counsel, who provided a memorandum detailing the legal standards for review of the Advisory Agreements. The Board received a detailed presentation by BB&TAM, which included a fund-by-fund analysis of performance and investment processes. Presentations were also provided by each entity utilized by BB&TAM as a sub-adviser. The Board also received fund-by-fund profitability information from BB&TAM, Scott & Stringfellow, Sterling Capital and Artio and firm-wide profitability information from Federated. The Independent Trustees also deliberated outside the presence of management and the Advisers.
In their deliberations, each Trustee attributed different weights to various factors involved in an analysis of the Continuance, and no factor alone was considered determinative. The Trustees determined that the overall arrangements between the Trust and the Advisers, as provided in the Advisory Agreements were fair and reasonable and that the Continuance of the Advisory Agreements was in the best interests of each Fund and its shareholders.
The matters addressed below were considered and discussed by the Trustees in reaching their conclusions.
Nature, Extent and Quality of Services Provided by the Sub-Adviser
The Trustees received and considered information regarding the nature, extent, and quality of the services provided to each Fund under the Advisory Agreements. The Trustees took into account information furnished throughout the year at Trustee meetings, as well as materials furnished specifically in connection with the annual review process. The Trustees considered the background and experience of each Adviser’s senior management and the expertise of investment personnel of each Adviser responsible for the day-to-day management of each Fund. The Trustees considered the overall reputation, and the capabilities and commitment of the Advisers to provide high quality service to the Trust, and the Trustees’ overall confidence in each Adviser’s integrity.
The Trustees received information concerning the investment philosophy and investment processes applied by the Advisers in managing the Funds as well as each Adviser’s Form ADV. The Trustees also considered information regarding regulatory compliance and compliance with the investment policies of the Funds. The Trustees evaluated the trading practices of Scott & Stringfellow, which engages in affiliated brokerage for portfolio trades for the Funds it sub-advises. The Trustees received information demonstrating a decreased use by Scott & Stringfellow of affiliated broker transactions over the past year. The Trustees evaluated the procedures of the Advisers designed to fulfill the Advisers’ fiduciary duty to the Funds with respect to possible conflicts of interest, including the Advisers’ codes of ethics (regulating the personal trading of its officers and employees).
Based on their review, the Trustees concluded that, with respect to the quality and nature of services to be provided by the Advisers, the scope of responsibilities was consistent with mutual fund industry norms, and that the quality of the services was satisfactory.
Investment Performance
The Trustees considered performance results of each Fund in absolute terms and relative to each Fund’s benchmark and peer group. It was noted that the average percentile performance of the equity Funds relative to comparable funds was competitive but had been negatively impacted by the performance of the BB&T Large Cap Fund. With respect to the fixed income Funds, it was noted that the average percentile ranking relative to peers for one-year and three-year performance had been strong. With respect to the Capital Manager Funds, it was noted that the performance of the underlying equity funds had resulted in a negative impact on percentile rankings relative to comparable funds.
In the Trustees’ review of performance, long and short-term performances were considered. In conducting their review, the Trustees particularly focused on Funds where performance compared unfavorably with peers over the most recent one year period. The Trustees noted that, although the performance of the Large Cap Fund continued to lag its peer group, BB&TAM’s Chief Investment Officer had increased his oversight of the portfolio management team, investment process, and portfolio composition. With respect to the Large Cap Fund, the Mid Cap Value Fund, and the Total Return Bond Fund, it was the consensus of the Trustees that each of these funds would be the subject of increased focus and review at upcoming meetings of the Board.
164
After reviewing the performance of each Fund, and taking into consideration the management style, investment strategies, and prevailing market conditions during the prior year and for longer periods, the Trustees concluded that the performance of each of the Funds was acceptable or better and that in cases where performance issues were encountered, the Adviser was appropriately addressing the situation.
Cost of Services, Including the Profits Realized by the Advisers and Affiliates
The Trustees considered peer group comparable information with respect to the advisory fees charged by BB&TAM to each of the Funds, taking into consideration both contractual and actual (i.e., after waiver) fee levels. The Trustees concluded that the investment advisory fees fell within an acceptable range as compared to peer groups, particularly in light of the fee waivers that would be continued or implemented in the upcoming year.
As part of their review, the Trustees considered benefits to the Adviser aside from investment advisory fees. The Trustees reviewed administration fees received by BB&TAM and considered the fallout benefits to BB&TAM such as the research services available to the Adviser by reason of brokerage commissions generated by the Funds’ turnover. The Trustees also considered benefits to BB&TAM’s affiliates, including brokerage commissions received by Scott & Stringfellow for executing trades on behalf of the Special Opportunities Equity Fund and the Equity Income Fund and sub-advisory fees received by its affiliate, Sterling Capital, for its management of the Mid CapValue Fund and the Total Return Bond Fund. With respect to Scott & Stringfellow, the Trustees noted that brokerage commissions were paid at a standard commission rate, which was consistent with that used by the Adviser with respect to all equity funds of the Trust and that such brokerage arrangements were considered by the Sub-Adviser to be advantageous.
The Trustees also considered the reasonableness of advisory fees, and, where relevant, the profitability of the Advisers. In determining whether all other investment advisory and sub-advisory fees (collectively, the “investment advisory fees”) were reasonable, the Trustees reviewed profitability information provided by BB&TAM, Scott & Stringfellow, Sterling Capital and Artio with respect to investment advisory services as well as firm-wide profitability information provided by Federated. With respect to such information, the Trustees recognized that such profitability data was generally unaudited and represented an Adviser’s own determination of its and its affiliates’ revenues from the contractual services provided to the Funds, less expenses of providing such services. Expenses include direct and indirect costs and were calculated using an allocation methodology developed by the Adviser. The Trustees also recognized that it is difficult to make comparisons of profitability from fund investment advisory and sub-advisory contracts, because comparative information is not generally publicly available and could be affected by numerous factors. Based on their review, the Trustees concluded that the profitability to BB&TAM, Scott & Stringfellow, Sterling Capital, and Artio, as a result of their relationships with the Funds, was acceptable. With respect to the profitability of Federated, the Trustees found that while actual fund-specific information regarding the profitability of the firm was not available, it would not have been helpful in assessing the Continuance of the Advisory Agreements. The Board concluded that the fees under the Advisory Agreements were fair and reasonable, in light of the services and benefits provided to each Fund.
Economies of Scale
The Trustees also considered whether fee levels reflect economies of scale and whether economies of scale would be produced by the growth of the Trust’s assets. The Trustees found that the Adviser had generally reduced fund total expense ratios through fee waivers. The Trustees noted recent decreases in asset levels on a complex-wide basis. The Trustees found that the asset levels of the Trust were not currently so large as to warrant formal contractual breakpoints, and found that the fee waivers were a reasonable way to provide the benefits of economies of scale to shareholders at this time.
165
Information about Trustees and Officers (Unaudited)
Overall responsibility for the management of the Funds rests with its Board of Trustees (“Trustees”), who are elected by the Shareholders of the Funds. The Trustees elect the officers of the Funds to supervise actively its day-to-day operations. The names of the Trustees, birthdate, term of office and length of time served, principal occupations during the past five years, number of portfolios overseen and directorships held outside of the Funds are listed in the two tables immediately following. The business address of the persons listed below is 434 Fayetteville Street Mall, Raleigh, North Carolina 27601.
INDEPENDENT TRUSTEES
Name and Birthdate | Position(s) Held With BB&T Funds | Term of Office/ | Principal Occupation During the Last 5 Years | Number of | Other | |||||
Thomas W. Lambeth Birthdate: 01/35 | Trustee, Chairman of the Board of Trustees | Indefinite, 08/92 — Present | From January 2001 to present, Senior Fellow, Z. Smith Reynolds Foundation; From 1978 to January 2001, Executive Director, Z. Smith Reynolds Foundation. | 30 | None | |||||
Drew T. Kagan Birthdate: 02/48 | Trustee | Indefinite, 08/00 — Present | From December 2003 to present, President and Director, Montecito Advisors, Inc; from March 1996 to December 2003, President, Investment Affiliate, Inc. | 30 | None | |||||
Laura C. Bingham Birthdate: 11/56 | Trustee | Indefinite, 02/01 — Present | From July 1998 to present, President of Peace College. | 30 | None | |||||
Douglas R. Van Scoy Birthdate: 11/43 | Trustee | Indefinite, 05/04 — Present | Retired; from November 1974 to July 2001, employee of Smith Barney (investment banking), most recently as Director of Private Client Group and Senior Executive Vice President. | 30 | None | |||||
166
BB&T Funds
The following table shows information for the trustee who is an “interested person” of the Funds as defined in the 1940 Act :
INTERESTED TRUSTEE
Name and Birthdate | Position(s) Held With BB&T Funds | Term of Office/ | Principal Occupation During the Past 5 Years | Overseen* | ||||
Keith F. Karlawish** Birthdate: 08/64 | Trustee | Indefinite, 06/06 — Present | From May 2002 to November 2008, President, BB&T Asset Management, Inc.; from 1996 to 2002, Senior Vice President and Director of Fixed Income, BB&T Asset Management, Inc. | 30 |
| * | The BB&T Fund Complex consists of two open-end investment management companies: BB&T Funds and BB&T Variable Insurance Funds. |
| ** | Mr. Karlawish is treated by the Fund as an “interested person” (as defined in Section 2(a)(19) of the 1940 Act) of the Funds. Mr. Karlawish is an “interested person” because he owns shares of BB&T Corporation and was the President of BB&T Asset Management, Inc., the Adviser until November 2008. |
The following table shows information for officers of Funds:
OFFICERS
Name and Birthdate | Position(s) Held With BB&T Funds | Term of Office/ Length of Time Served | Principal Occupation During the Last 5 Years | |||
Keith F. Karlawish* Birthdate: 08/64 | President | Indefinite, 02/05 — 11/08 | From May 2002 to November 2008, President, BB&T Asset Management, Inc.; from 1996 to 2002, Senior Vice President and Director of Fixed Income, BB&T Asset Management, Inc. | |||
E.G. Purcell, III** Birthdate: 01/55 | Vice President and Secretary | Indefinite, 11/00 — Present | From 1995 to present, Senior Vice President, BB&T Asset Management, Inc. and its predecessors | |||
Todd M. Miller Birthdate: 09/71 | Vice President | Indefinite, 08/05 — Present | From June 2005 to Present, Mutual Fund Administrator, BB&T Asset Management, Inc.; from May 2001 to May 2005, Manager, BISYS Fund Services | |||
167
BB&T Funds
Name and Birthdate | Position(s) Held With BB&T Funds | Term of Office/ | Principal Occupation During the Last 5 Years | |||
Clinton L. Ward Birthdate: 11/69 | Chief Compliance and Anti-Money Laundering Officer | Indefinite, 04/07 — Present | From July 2004 to present, Chief Compliance Officer and Secretary, BB&T Asset Management, Inc.; from January 2002 to July 2004, Compliance Analyst, Wachovia Bank, N.A.; from November 1999 to January 2002, Compliance Manager - Mutual Fund Compliance, Banc of America Capital Management, LLC | |||
Andrew J. McNally Birthdate: 12/70 | Treasurer | Indefinite, 04/07 — Present | From December 2000 to present, Vice President and Senior Director, Fund Accounting and Administration Department, PNC Global Investment Servicing | |||
Avery Maher Birthdate: 02/45 | Assistant Secretary | Indefinite, 04/07 — Present | From March 2006 to present, Vice President and Counsel, Regulatory Administration Department, PNC Global Investment Servicing; from October 2004 to August 2005, Vice President and Assistant General Counsel, JPMorgan Asset Management; from 1992 to 2004, Second Vice President and Assistant Secretary, John Hancock Advisers, LLC | |||
| * | Mr. Karlawish resigned as President of the Funds in November 2008 and was replaced by E.G. Purcell, III. |
| ** | Effective November 2008, Mr. Purcell was named President of the Funds. He retained the office of Secretary as well. |
The Funds’ Statement of Additional Information includes information about the Funds’ Trustees and Officers. To receive your free copy of the Statement of Additional Information, call toll free: 1-800-453-7348.
168
INVESTMENT ADVISER
BB&T Asset Management, Inc.
434 Fayetteville Street
5th Floor
Raleigh, NC 27601
DISTRIBUTOR
BB&T AM Distributors, Inc.
760 Moore Road
King of Prussia, PA 19406
LEGAL COUNSEL
Ropes & Gray LLP
One Metro Center
700 12th Street, N.W.
Suite 900
Washington, D. C. 20005
TRANSFER AGENT
PNC Global Investment Servicing (U.S.) Inc.
760 Moore Road
King of Prussia, PA 19406
INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM
KPMG LLP
345 Park Avenue
New York, New York 10154
Sterling Capital Small Cap Value Fund
| Annual Report | September 30, 2008 |
CAPITAL SMALL
CAP VALUE FUND
STERLING CAPITAL
SMALL CAP VALUE FUND
| 1 | ||
| 6 | ||
| 10 | ||
| 11 | ||
| 12 | ||
| 13 | ||
| 14 | ||
| 22 | ||
| 23 | ||
| 24 | ||
| 27 | ||
| 30 | ||
The Fund files its complete schedule of investments of fund holdings with the Securities and Exchange Commission (the “SEC”) for the first and third quarters of each fiscal year on Form N-Q within 60 days after period end. The Fund’s Form N-Q is available on the SEC’s website at http://www.sec.gov, and may be reviewed and copied at the SEC’s Public Reference Room in Washington D.C. Information on the operation of the Public Reference Room may be obtained by calling 1-800-SEC-0330.
A description of the policies and procedures that the Fund uses to determine how to vote proxies relating to portfolio securities, as well as information relating to how the Fund voted proxies relating to portfolio securities during the most recent 12-month period ended June 30, is available (i) without charge, upon request, by calling 1-866-450-3722; and (ii) on the SEC’s website at http://www.sec.gov.
STERLING CAPITAL
SMALL CAP VALUE FUND
To Our Fellow Shareholders:
For the year ended September 2008, the Sterling Capital Small Cap Value Fund (the “Fund”) produced a negative return of (17.2%) versus the Russell 2000 Value Index return of (12.3%) and greater than (20%) declines in the mid and large cap categories.
As we write this letter in late October, we are in the midst of seized up credit markets and plunging stock and bond markets on a global basis. Not since the severe recessions of 1974-75 or 1981-82, have we witnessed the value destruction evident in today’s markets. We have no doubt that the U.S., among many developed and developing economies, is in recession. Recessions do occur but they are infrequent events among much longer periods of economic growth and prosperity. What recessions do provide the long term investor, in our view, are exceptionally attractive entry points into common stocks. We, therefore remain fully invested.
We reviewed the relative return for the Russell 2000 Value Index for 2008 with the following observations. Energy and commodity related businesses disproportionately aided the Index results. We have been underweight these industries due to their high valuations and poor historical return on capital. Stocks prices for businesses serving these industries peak this summer as oil reached $147/barrel and have since plunged in value. The following graph depicts commodity price changes so far in 2008.
The performance data quoted represents past performance. Past performance does not guarantee future results. The investment return and principal value of an investment will fluctuate so that an investor’s shares when redeemed, may be worth more or less than their original cost and current performance may be lower or higher than the performance quoted. For performance data current to the most recent month end, please call 1-866-450-3722. Returns assume reinvestment of all dividend and capital gains distributions. In the current prospectus, the total expense ratio for the Fund is 1.47%.
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While arguments about a “de-coupling” of economic activity between developed and developing economies (Brazil, China, India, Russia, etc.) were in vogue, the fact remains that over 70% of global activity remains in North America and Western Europe. Global growth from developing countries is not large enough to overcome economic weakness in the developed world.
We were also struck by the relative underperformance of companies with near term re-financing deadlines or with higher than average levels of debt. Stock prices for many of these businesses collapsed as the year progressed. In our portfolio, Fleetwood Enterprises and Axcelis Technologies have significantly underperformed the market as both companies face near term re-financing deadlines that risk substantial dilution for shareholders in a locked up credit market. In each case, we believe the companies have substantial collateral to affect a reasonable outcome on their re-financings and may see improvements in their share prices after liquidity issues are put to rest. Other portfolio holdings such as Exide Technologies and ATP Oil & Gas do not have near term re-financing but rather above average levels of debt. The sell off in commodity stocks also affected their share prices. The chart below reflects the historically extreme level of credit tightness in the markets today.1
1 | Portfolio composition is as of September 30, 2008 and subject to change. |
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Finally, sectors with historically defensive characteristics outperformed in the market tumult including Health Care, REITs, and Utilities. We are somewhat perplexed with the common wisdom that health care or real estate investment trusts are considered defensive given the current economic backdrop. For most health care services businesses, the primary payers are the Federal and state governments. Federal and state governments face significant funding challenges, and reimbursement rates will likely lag the rate of inflation in the years to come. REITs, generally speaking, have taken advantage of loose credit standards in the past few years that are no longer available. Real estate values have declined and we believe they will continue to do so while cash flow growth (primarily rents) will have difficulty growing in the current environment. In fact, some REIT categories likely will face shrinking rents and dividend cuts. Therefore, we are not convinced that the REIT out-performance is the start of better times for the industry.
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In conclusion, the markets and economy are in as difficult a period as we have witnessed in our lifetime. Our bottom-up process is focused on identifying companies that offer balance sheet strength and compelling valuations. We believe in this time tested approach of investing and will not deviate from it despite the market headwinds. In our view, History teaches us that the economy will ultimately get through this period of dislocation and that stock prices will reflect appropriate valuations in the future.
Sincerely,
STERLING CAPITAL MANAGEMENT
Eduardo A. Brea, CFA
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SEPTEMBER 30, 2008
Comparison of Change in the Value of a $10,000 Investment in the Sterling Capital Small Cap Value Fund and the Russell 2000 Value Index(1)(2)(3)
(1) | The figures quoted represent past performance. Past performance is no guarantee of future performance and should not be considered as a representation of future results of the Fund. If the adviser had not limited certain expenses, the Fund’s total return would have been lower. The Fund’s performance assumes the reinvestment of distributions and does not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares. The investment return and principal value of an investment will fluctuate, so an investor’s shares, when redeemed, may be worth more or less than its original cost. Current performance may be higher or lower than the performance quoted. For performance data current to the most recent month-end, please call 1-866-450-3722. |
(2) | The performance information for the Sterling Shares prior to 12/18/06 is based on the performance of the Institutional Shares of the Fund’s predecessor, Sterling Capital Small Cap Value Fund, a series of the Advisor’s Inner Circle Fund (the “Acquired Fund”), which transferred all of its assets and liabilities to the Fund pursuant to a reorganization on 12/18/06. Performance information prior to 3/16/01 relates to the UAM Fund Inc.’s Sterling Partners’ Small Cap Value Portfolio, the assets of which were acquired by the Acquired Fund. The Acquired Fund’s investment program was substantially similar to that of the Fund. The performance of the Sterling Shares would have been different because Sterling Shares have different expenses than the predecessor’s Institutional Shares. |
(3) | The Russell 2000 Value Index is an unmanaged index comprised of Russell 2000 securities (2000 stocks of U.S. companies with small market capitalizations) which have lower price-to-book ratios and lower forecasted growth values. The index is unmanaged and does not reflect transaction costs. A direct investment in an unmanaged index is not possible. |
| Investing in small capitalization companies involves greater risk such as higher volatility and less liquidity than investing in larger more established companies. |
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SEPTEMBER 30, 2008
SECTOR WEIGHTINGS†: |
| † | Percentages based on market value of total investments. |
| * | Short-Term Investments represents the invested cash collateral received in connection with securities lending (see Note 2). |
SCHEDULE OF PORTFOLIO INVESTMENTS
COMMON STOCKS* — 97.8%
| Shares | Market Value | ||||
AUTO & TRANSPORTATION — 0.6% | |||||
Fleetwood Enterprises, Inc. (a)(b) | 134,650 | $ | 137,343 | ||
CONSUMER DISCRETIONARY — 24.7% | |||||
Brink’s Co. (The) | 3,800 | 231,876 | |||
Career Education Corp. (a) | 14,750 | 241,162 | |||
EarthLink, Inc. (a) | 112,100 | 952,850 | |||
Group 1 Automotive, Inc. (b) | 22,800 | 495,444 | |||
ICT Group, Inc. (a) | 36,660 | 295,113 | |||
K-Swiss, Inc., Class A | 20,000 | 348,000 | |||
Lithia Motors, Inc., Class A (b) | 45,321 | 195,334 | |||
Meredith Corp. (b) | 17,600 | 493,504 | |||
Regis Corp. | 35,167 | 967,092 | |||
Select Comfort Corp. (a) | 96,040 | 158,466 | |||
Signet Jewelers, Ltd. | 19,800 | 462,924 | |||
Tempur-Pedic International, Inc. (b) | 29,300 | 344,568 | |||
Universal Technical Institute, Inc. (a) | 8,800 | 150,128 | |||
Voyager Learning Co. (a) | 65,500 | 262,000 | |||
| 5,598,461 | |||||
CONSUMER STAPLES — 3.1% | |||||
Winn-Dixie Stores, Inc. (a) | 49,784 | 691,998 | |||
The accompanying notes are an integral part of the financial statements.
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SEPTEMBER 30, 2008
COMMON STOCKS* — continued |
| Shares | Market Value | ||||
FINANCIALS SERVICES — 26.4% | |||||
AmeriCredit Corp. (a)(b) | 25,400 | $ | 257,302 | ||
Assured Guaranty, Ltd. (b) | 10,150 | 165,039 | |||
Brookline Bancorp, Inc. | 27,850 | 356,202 | |||
Endurance Specialty Holdings, Ltd. | 11,900 | 367,948 | |||
Fair Isaac Corp. | 32,200 | 742,210 | |||
First Citizens BancShares, Inc., Class A | 6,960 | 1,245,840 | |||
First Horizon National Corp. (b) | 23,086 | 216,082 | |||
FirstFed Financial Corp. (a)(b) | 27,800 | 217,952 | |||
Horace Mann Educators Corp. | 24,400 | 314,028 | |||
Infinity Property & Casualty Corp. | 8,400 | 346,080 | |||
Phoenix Cos., Inc. (The) | 66,550 | 614,922 | |||
Piper Jaffray Cos. (a) | 7,500 | 324,375 | |||
Provident Financial Services, Inc. | 23,050 | 380,555 | |||
Waddell & Reed Financial, Inc., Class A | 7,390 | 182,902 | |||
Washington Federal, Inc. | 13,700 | 252,765 | |||
| 5,984,202 | |||||
HEALTH CARE — 1.9% | |||||
AMERIGROUP Corp. (a) | 10,300 | 259,972 | |||
Palomar Medical Technologies, Inc. (a) | 12,100 | 162,866 | |||
| 422,838 | |||||
MATERIALS & PROCESSING — 14.5% | |||||
Avatar Holdings, Inc. (a)(b) | 9,535 | 314,655 | |||
Cabot Microelectronics Corp. (a) | 12,400 | 397,792 | |||
Exide Technologies (a) | 30,400 | 224,352 | |||
Granite Construction, Inc. | 11,200 | 401,184 | |||
Louisiana-Pacific Corp. | 89,600 | 833,280 | |||
OMNOVA Solutions, Inc. (a) | 61,550 | 122,484 | |||
Trex Co., Inc. (a) | 14,568 | 263,826 | |||
Universal Forest Products, Inc. | 20,400 | 712,164 | |||
| 3,269,737 | |||||
The accompanying notes are an integral part of the financial statements.
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COMMON STOCKS* — continued |
| Shares | Market Value | ||||
OTHER ENERGY — 4.8% | |||||
ATP Oil & Gas Corp. (a)(b) | 20,000 | $ | 356,200 | ||
Forest Oil Corp. (a) | 5,446 | 270,122 | |||
Holly Corp. | 15,900 | 459,828 | |||
| 1,086,150 | |||||
PRODUCER DURABLES — 5.2% | |||||
Axcelis Technologies, Inc. (a) | 116,565 | 198,161 | |||
Photon Dynamics, Inc. (a) | 8,300 | 127,405 | |||
Smith (A.O.) Corp. | 21,575 | 845,524 | |||
| 1,171,090 | |||||
TECHNOLOGY — 9.4% | |||||
Black Box Corp. | 28,169 | 972,676 | |||
DealerTrack Holdings, Inc. (a) | 16,300 | 274,492 | |||
MicroStrategy, Inc., Class A (a) | 8,200 | 488,146 | |||
Orbotech, Ltd. (a) | 42,574 | 340,166 | |||
Trident Microsystems, Inc. (a) | 25,250 | 60,600 | |||
| 2,136,080 | |||||
UTILITIES — 7.2% | |||||
Allete, Inc. | 23,600 | 1,050,200 | |||
Cleco Corp. | 22,600 | 570,650 | |||
| 1,620,850 | |||||
TOTAL COMMON STOCKS | 22,118,749 | ||||
INVESTMENT COMPANIES — 4.9% | |||||
Federated Treasury Obligations Fund, Institutional Shares | 1,117,524 | 1,117,524 | |||
The accompanying notes are an integral part of the financial statements.
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SECURITIES HELD AS COLLATERAL FOR SECURITIES ON LOAN — 9.9% |
| Principal Amount | Market Value | ||||||
SECURITIES HELD AS COLLATERAL FOR SECURITIES | |||||||
Pool of Various Securities | $ | 2,284,956 | $ | 2,251,806 | |||
TOTAL INVESTMENTS | 25,488,079 | ||||||
NET OTHER ASSETS (LIABILITIES) — (12.6)% | (2,853,259 | ) | |||||
NET ASSETS — 100.0% | $ | 22,634,820 | |||||
| * | Narrow industries are utilized for compliance purposes, whereas broad sectors are utilized for reporting. |
| (a) | Represents non-income producing security. |
| (b) | Represents that all or a portion of the security was on loan as of September 30, 2008. |
The accompanying notes are an integral part of the financial statements.
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SEPTEMBER 30, 2008
Assets: | ||||
Investments at value (Cost $30,877,977)* | $ | 25,488,079 | ||
Receivable for investment securities sold | 124,477 | |||
Receivable for capital shares sold | 84,882 | |||
Dividends and securities lending income receivable | 18,886 | |||
Prepaid expenses | 5,410 | |||
Total Assets | 25,721,734 | |||
Liabilities: | ||||
Payable for collateral received on loaned securities | 2,284,956 | |||
Payable for investment securities purchased | 741,760 | |||
Payable for capital shares redeemed | 27,552 | |||
Accrued expenses and other payables: | ||||
Investment advisory fees | 10,513 | |||
Administration fees | 1,884 | |||
Compliance service fees | 572 | |||
Other | 19,677 | |||
Total Liabilities | 3,086,914 | |||
Net Assets | $ | 22,634,820 | ||
NET ASSETS CONSIST OF: | ||||
Paid-in capital | $ | 28,166,253 | ||
Accumulated net realized loss on investments | (141,535 | ) | ||
Net unrealized depreciation on investments | (5,389,898 | ) | ||
Net Assets | $ | 22,634,820 | ||
Sterling Shares: | ||||
Shares Issued and Outstanding | 2,287,714 | |||
Net Asset Value, Offering and Redemption Price Per Share | $9.89 | |||
| * | The market value of securities on loan is $2,291,113. |
The accompanying notes are an integral part of the financial statements.
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FOR THE YEAR ENDED
SEPTEMBER 30, 2008
Investment Income: | ||||
Dividends | $ | 358,498 | ||
Income from securities lending | 26,069 | |||
Total Investment Income | 384,567 | |||
Expenses: | ||||
Investment advisory fees | 272,591 | |||
Administration fees | 26,869 | |||
Accounting fees | 3,029 | |||
Custodian fees | 7,953 | |||
Printing fees | 18,000 | |||
Professional fees | 7,882 | |||
Registration and filing fees | 14,110 | |||
Transfer agent fees | 65,733 | |||
Trustees’ fees | 2,729 | |||
Other expenses | 4,688 | |||
Total Expenses | 423,584 | |||
Less: | ||||
Waiver of investment advisory fees (Note 4) | (40,705 | ) | ||
Net Expenses | 382,879 | |||
Net Investment Income | 1,688 | |||
Realized/Unrealized Gain (Loss) on Investments: | ||||
Net realized gain on investments | 1,507,848 | |||
Net change in unrealized appreciation/depreciation on investments | (8,654,277 | ) | ||
Net Realized/Unrealized Loss on Investments | (7,146,429 | ) | ||
Net Decrease in Net Assets Resulting from Operations | $ | (7,144,741 | ) | |
The accompanying notes are an integral part of the financial statements.
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| Year Ended September 30, 2008 | Period Ended September 30, 2007* | Year Ended October 31, 2006 | ||||||||||
Operations: | ||||||||||||
Net Investment Income (Loss) | $ | 1,688 | $ | (38,243 | ) | $ | (195,685 | ) | ||||
Net Realized Gain on Investments | 1,507,848 | 8,370,740 | 22,691,205 | |||||||||
Net Change in Unrealized Appreciation/Depreciation on Investments | (8,654,277 | ) | (4,992,657 | ) | (8,446,370 | ) | ||||||
Net Increase (Decrease) in Net Assets Resulting From Operations | (7,144,741 | ) | 3,339,840 | 14,049,150 | ||||||||
Distributions: | ||||||||||||
Net Investment Income | — | — | (101,502 | ) | ||||||||
Realized Capital Gains | (7,479,296 | ) | (14,260,312 | ) | (15,618,613 | ) | ||||||
Total Distributions | (7,479,296 | ) | (14,260,312 | ) | (15,720,115 | ) | ||||||
Capital Share Transactions: | ||||||||||||
Issued | 3,312,898 | 28,128,630 | 17,809,586 | |||||||||
Reinvestment of Distributions | 7,112,610 | 12,238,373 | 14,844,748 | |||||||||
Redeemed | (18,619,373 | ) | (44,731,125 | ) | (69,446,759 | ) | ||||||
Net Decrease in Net Assets from | (8,193,865 | ) | (4,364,122 | ) | (36,792,425 | ) | ||||||
Total Decrease in Net Assets | (22,817,902 | ) | (15,284,594 | ) | (38,463,390 | ) | ||||||
Net Assets: | ||||||||||||
Beginning of period | 45,452,722 | 60,737,316 | 99,200,706 | |||||||||
End of period (Includes Undistributed Net Investment Income of $0, $0, and $0, respectively) | $ | 22,634,820 | $ | 45,452,722 | $ | 60,737,316 | ||||||
Share Transactions: | ||||||||||||
Issued | 301,948 | 1,827,911 | 1,020,420 | |||||||||
Reinvestment of Distributions | 640,199 | 834,814 | 938,217 | |||||||||
Redeemed | (1,751,575 | ) | (2,873,703 | ) | (4,095,586 | ) | ||||||
Net Decrease in Shares Outstanding | (809,428 | ) | (210,978 | ) | (2,136,949 | ) | ||||||
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| * | The Fund’s fiscal year-end changed from October 31 to September 30, effective September 30, 2007. |
The accompanying notes are an integral part of the financial statements.
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Sterling Shares
Selected data for a share of beneficial interest outstanding throughout the periods indicated
| Year Ended September 30, 2008 | Period Ended September 30, 2007* | Years Ended October 31, | ||||||||||||||||||||||
| 2006 | 2005 | 2004 | 2003 | |||||||||||||||||||||
Net Asset Value, | $ | 14.68 | $ | 18.36 | $ | 18.22 | $ | 18.33 | $ | 16.17 | $ | 11.75 | ||||||||||||
Income (Loss) from Investment Operations: | ||||||||||||||||||||||||
Net Investment Income (Loss) | — | (1)(2) | (0.01 | )(1) | (0.04 | )(1) | 0.01 | (1) | 0.07 | (0.01 | ) | |||||||||||||
Net Realized and Unrealized Gain (Loss) | (2.24 | )(1) | 0.68 | (1) | 3.09 | (1) | 1.61 | (1) | 2.61 | 4.54 | ||||||||||||||
Total from Investment Operations | (2.24 | ) | 0.67 | 3.05 | 1.62 | 2.68 | 4.53 | |||||||||||||||||
Distributions: | ||||||||||||||||||||||||
Net Investment Income | — | — | (0.02 | ) | — | (0.07 | ) | — | ||||||||||||||||
Net Realized Capital Gains | (2.55 | ) | (4.35 | ) | (2.89 | ) | (1.73 | ) | (0.45 | ) | (0.11 | ) | ||||||||||||
Total Distributions | (2.55 | ) | (4.35 | ) | (2.91 | ) | (1.73 | ) | (0.52 | ) | (0.11 | ) | ||||||||||||
Net Asset Value, | $ | 9.89 | $ | 14.68 | $ | 18.36 | $ | 18.22 | $ | 18.33 | $ | 16.17 | ||||||||||||
Total Return† | (17.16 | )% | 3.67 | %(3) | 19.31 | % | 9.24 | % | 17.03 | % | 38.88 | % | ||||||||||||
Ratios and Supplemental Data | ||||||||||||||||||||||||
Net Assets, End of Period (000) | $ | 22,635 | $ | 45,453 | $ | 60,737 | $ | 99,201 | $ | 247,954 | $ | 227,702 | ||||||||||||
Ratio of Expenses to Average Net Assets | 1.26 | % | 1.18 | %(4) | 1.25 | %(5) | 1.25 | %(5) | 1.25 | % | 1.25 | % | ||||||||||||
Ratio of Expenses to Average Net Assets (without waivers and fees paid indirectly) | 1.40 | % | 1.41 | %(4) | 1.63 | % | 1.47 | % | 1.36 | % | 1.35 | % | ||||||||||||
Ratio of Net Investment Income (Loss) to Average Net Assets | 0.01 | % | (0.07 | )%(4) | (0.26 | )% | 0.06 | % | 0.33 | % | (0.10 | )% | ||||||||||||
Portfolio Turnover Rate | 64 | % | 82 | % (3) | 56 | % | 45 | % | 41 | % | 46 | % | ||||||||||||
| * | The Fund’s fiscal year-end changed from October 31 to September 30, effective September 30, 2007. |
| † | Total return is for the period indicated and has not been annualized. Total returns shown do not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares. Total return would have been lower if the Adviser did not waive a portion of its fee. The performance is based on the performance of the Institutional Shares of the Acquired Fund. |
(1) | Per share calculations based on the Average Shares method. |
(2) | Amount is less than $0.005. |
(3) | Not Annualized. |
(4) | Annualized. |
(5) | The ratio of expenses to average net assets excludes the effects of fees paid indirectly. If these expense offsets were included, the ratio would not significantly differ. |
The accompanying notes are an integral part of the financial statements.
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1. Organization:
BB&T Funds (the “Trust”) commenced operations on October 5, 1992 and is 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. As of the date of these financial statements, the Trust offers shares (“Shares”) of twenty-five separate series. These financial statements pertain to the Sterling Capital Small Cap Value Fund (the “Fund”) only. The financial statements of the remaining series are presented in separate documents. The Fund’s prospectus provides a description of the Fund’s investment objectives, policies and strategies.
The Fund is authorized to offer an unlimited amount of shares. These shares are divided into four classes: Class A Shares, Class B Shares, Class C Shares and Sterling Shares. Currently, the Fund only offers Sterling Shares. The Fund is an open-end “diversified” management company, as defined in the 1940 Act.
Effective September 30, 2007, the Fund’s fiscal year end changed from October 31 to September 30.
Each class of shares has identical rights and privileges except with respect to the voting rights on matters affecting a single class of shares and the exchange privilege of each class of shares.
Under the Trust’s organizational documents, its Officers and Trustees are indemnified against certain liabilities arising out of the performance of their duties to the Trust. In addition, in the normal course of business, the Fund may enter into contracts with its vendors and others that provide for general indemnifications. The Fund’s maximum exposure under these arrangements is unknown, as this would involve future claims that may be made against the Fund. However, based on experience, the Fund expects that risk of loss to be remote.
2. Significant Accounting Policies:
The following is a summary of the significant accounting policies followed by the Fund in the preparation of financial statements. The policies are in conformity with United States generally accepted accounting principles (“GAAP”). 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.
Recent Accounting Standards — In September 2006, the Financial Accounting Standards Board (“FASB”) issued Statement on Financial Accounting Standards No. 157, “Fair Value Measurements” (“SFAS No. 157”). This standard establishes a single authoritative definition of fair value, sets out a framework for measuring
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SEPTEMBER 30, 2008
fair value and requires additional disclosures about fair value measurements. SFAS No. 157 applies to fair value measurements already required or permitted by existing standards. SFAS No. 157 is effective for financial statements issued for fiscal years beginning after November 15, 2007 and interim periods within those fiscal years. The changes to current GAAP from the application of this SFAS No. 157 relate to the definition of fair value, the methods used to measure fair value, and the expanded disclosures about fair value measurements. As of September 30, 2008, the Fund does not believe the adoption of SFAS No. 157 will impact the financial statement amounts; however, additional disclosures will be required about the inputs used to develop the measurements and the effect of certain of the measurements on changes in net assets for the period.
In March 2008, FASB issued Statement of Financial Accounting Standards No. 161, “Disclosures about Derivative Instruments and Hedging Activities” (“SFAS 161”) and is effective for fiscal years beginning after November 15, 2008 and interim periods within those fiscal years. SFAS 161 is intended to improve financial reporting for derivative instruments by requiring enhanced disclosure that enables investors to understand how and why an entity uses derivatives, how derivatives are accounted for, and how derivative instruments affect an entity’s results of operations and financial position. Management is continuing to evaluate the impact, if any, that the adoption of FAS 161 may have on the financial statements.
Securities Valuation — Investments of the Fund in securities the principal market for which is a securities exchange or an over-the counter market are valued at their latest available sales price (except for those securities traded on NASDAQ, which will be valued at the NASDAQ Official Closing Price), or, absent such a price, by reference to the latest available bid price in the principal market in which such securities are normally traded. Securities the principal market for which is not a securities exchange are valued at their latest bid quotation in such principal market. Short-term securities are valued either at amortized cost or original cost plus interest, which approximates market value. Repurchase agreements are valued at original cost.
Securities for which market prices are not readily available are valued at fair value as determined by the Trust’s Pricing Committee in good faith pursuant to procedures established by and under the general supervision of the Board of Trustees (the “Board”). Some of the more common reasons that may necessitate that a security be valued by the Pricing Committee include: the security’s trading has been halted or suspended; the security has been de-listed from a national exchange; the security’s primary trading market is temporarily closed at a time when under normal conditions it would be open; the security has not been traded for an extended period of time; the security’s primary pricing source is not able or willing to provide a price; or trading of the security is subject to local government-imposed restrictions. As of September 30, 2008, there were no securities fair valued by the pricing committee.
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Securities Transactions and Related Income — Security transactions are accounted for no later than one business day following the trade date. For financial reporting purposes, however, security transactions are accounted for on the trade date of the last business day of the reporting period. Interest income is recognized on the accrual basis and includes, where applicable, the amortization and accretion of premium and discount, respectively. Dividend income is recorded on the ex-dividend date. Gains or losses from sales of securities are determined by comparing the identified cost of the security lot sold with the net sale proceeds.
Repurchase Agreements — The Fund may enter into agreements with member banks of the Federal Deposit Insurance Corporation and with registered broker/dealers that Sterling Capital Management LLC (“Sterling Capital” or the “Adviser”) deemed creditworthy under guidelines approved at the Board, subject to a 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) in a segregated account. Securities subject to repurchase are held by the Fund’s 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.
Expenses — Expenses that are directly related to the Fund are charged to the Fund. Expenses not directly attributable to the Fund are allocated proportionately in relation to the net assets of each fund in the Trust or another reasonable basis. Expenses that are attributable to both the Trust and the BB&T Variable Insurance Funds are allocated across the Trust and BB&T Variable Insurance Funds, based upon relative net assets or on another reasonable basis.
Distributions to Shareholders — Dividends from net investment income, if any, are declared and paid to shareholders quarterly. Any net realized capital gains are distributed to shareholders at least annually.
Federal Income Taxes — It is the policy of the Fund to continue to qualify as a regulated investment company by complying with the provisions available to certain investment companies, as defined in applicable sections of the Internal Revenue Code, and to make distributions 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.
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SEPTEMBER 30, 2008
Security Loans — The Fund may loan securities secured by collateral in the form of securities issued or guaranteed by the U.S. Government or its agencies or instrumentalities, irrevocable letters of credit, U.S. dollar, cash or other form of collateral as may be agreed to between the Trust and Mellon Bank, N.A., the lending agent (“Mellon”). The Fund may receive compensation for lending securities in the form of fees payable by the borrower or by retaining a portion of the income and earnings from the investment and reinvestment of the cash as collateral received and held on behalf of the Fund (after payment of a “broker rebate fee” to the borrower). A Fund also continues to receive interest or dividends on the securities loaned. Although security loans are secured at all times by collateral, the loans may not be fully supported if, for example, the instruments in which cash collateral is invested decline in value or the borrower fails to provide additional collateral when required in a timely manner or at all. Concurrently with the delivery of the Fund’s securities to a borrower, Mellon is required to obtain from the borrower collateral equal to at least 102% of the market value of the securities loaned plus accrued interest, in the case of U.S. securities, and at least 105% of the market value of the securities loaned plus accrued interest in the case of foreign securities. If at the close of trading on any business day the market value of the collateral is less than 100% of the market value of such loaned securities as of such business day, the borrower is required to deliver additional collateral equal to not less than 102% of the market value of the securities loaned plus accrued interest in the case of U.S. securities and 105% of the market value of the securities loaned plus accrued interest in the case of foreign securities. Cash collateral received by a Fund at September 30, 2008 was invested in the BNY Institutional Cash Reserve Fund (“ICRF”) an unregistered investment pool managed by Mellon, which was invested in bank notes, certificates of deposit, commercial paper and time deposits. The non cash collateral received by the Fund was in the form of equity securities.
The net asset value of a Fund will be affected by an increase or decrease in the value of the securities loaned and by an increase or decrease in the value of the ICRF or any other investment vehicle in which cash collateral may be invested. At September 30, 2008, the ICRF held investments in Lehman Brothers and White Pine Finance, LLC, both of which had defaulted in their obligations during the period. These defaults resulted in the value of the ICRF to be less than the amount of collateral owed back to the borrowing brokers. The difference between the value of the collateral investments in the ICRF and what is owed to the borrowing brokers negatively impacted the NAV of the Fund at September 30, 2008 by $0.02 per share.
There may be risks of delay in recovery of the securities or even loss of rights in the collateral should the borrower of the securities fail financially. Another risk from securities lending is that the borrower may not provide additional collateral when required or return the securities when due or when called for by the Fund. The Funds are indemnified from losses resulting from brokers
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SMALL CAP VALUE FUND
SEPTEMBER 30, 2008
failing to return securities. As the securities lending agent for the Funds, Mellon receives for its services 20% of the revenues earned on the securities lending activities and incurs all expenses. The securities lending agent may make payments to borrowers and placing brokers, who may not be affiliated, directly or indirectly, with the Trust, the adviser or the distributor. In connection with lending securities, a Fund may pay reasonable administrative and custodial fees. The value of the securities on loan, the related collateral and the liability to return the collateral at September 30, 2008, are shown on the Statements of Assets and Liabilities. Loans are subject to termination by the Funds or the borrower at any time. At September 30, 2008, the Fund had loans outstanding:
Market Value of Loaned Securities | Market Value of Collateral | Average Market Value on September 30, 2008 | ||
| $2,291,113 | $2,251,806 | $2,572,923 |
3. Purchases and Sales of Securities:
Purchases and sales of securities (excluding securities maturing less than one year from acquisition) for the year ended September 30, 2008, were $19,597,475 and $35,530,389 respectively.
4. Related Party Transactions:
Investment advisory and management services are provided to the Fund by the Adviser pursuant to an Investment Advisory Agreement (the “Advisory Agreement”) dated July 1, 2006 and amended and restated August 28, 2007. The Adviser is a successor to Sterling Capital Management Company, which was a wholly-owned subsidiary of United Asset Management. On April 1, 2005, BB&T Corporation acquired a 70% ownership interest in the Adviser. The Adviser now operates as an independently managed subsidiary of BB&T Corporation.
Under the Advisory Agreement, the Adviser receives an annual fee equal to (a) 0.90% of the fund’s average daily net assets; or (b) such fee as may from time to time be agreed upon in writing by the Trust and the Adviser. A fee agreed to in writing from time to time by the Trust and the Adviser may be significantly lower than the fee calculated at the annual rate and the effect of such lower fee would be to lower the Fund’s expenses and increase net income of the Fund during the period when such lower fee is in effect. The Adviser has contractually agreed to limit its advisory fee paid by the Fund to 0.80% through January 31, 2009. In addition, the Adviser voluntarily waived additional advisory fees during the fiscal year. Voluntary investment advisory fee waivers are not subject to recoupment in subsequent fiscal periods and may be discontinued at any time. Any reductions in advisory fees are reflected as “Waiver of investment advisory fees” in the Statement of Operations.
BB&T Asset Management, Inc. (“BB&T AM” or the “Administrator”) serves as the Administrator to the Fund as well as other Funds in the Trust and the BB&T Variable Insurance Funds pursuant to an Administration Agreement effective April 23,
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SEPTEMBER 30, 2008
2007. The Fund pays the Administrator its portion of a fee based on the aggregate assets of the Trust and the BB&T Variable Insurance Funds at an annual rate of 0.11% on the first $3.5 billion of average daily net assets; 0.075% on the next $1 billion of the average daily net assets; 0.06% on the next $1.5 billion of the average daily net assets; and 0.04% on the average daily net assets over $6 billion. This fee is accrued daily and paid monthly.
PNC Global Investment Servicing (U.S.) Inc. (“PNC”), formerly known as PFPC Inc., serves as the Fund’s sub-administrator and transfer agent. BB&T AM Distributors, Inc. (the “Distributor”) serves as the Fund’s Distributor pursuant to an Underwriting Agreement effective for the Fund as of February 1, 2008. From December 31, 2006 to January 31, 2008 the Agreement was with PFPC Distributors, Inc.
U.S. Bank National Association acts as custodian (the “Custodian”) for the Fund. The Custodian plays no role in determining the investment policies of the Fund or which securities are to be purchased and sold by the Fund. Mellon serves as the securities lending agent to the Fund.
Certain Officers and Trustees of the Fund are affiliated with the Adviser, the Administrator, or PNC. Such Officers and Trustees receive no compensation from the Trust for servicing in their respective roles. Each of the Trustees who are not “interested persons” (as defined in the 1940 Act) of the Trust and the BB&T Variable Insurance Funds who serve on the Board are compensated at the annual rate $30,000 plus $5,000 for each regularly scheduled quarterly attended meeting, $4,000 for each special meeting attended in person and $3,000 for each special meeting attended by telephone. Each Trustee serving on a Committee of the Board of Trustees receives a fee of $4,000 for each Committee meeting attended in person and $3,000 for each Committee meeting attended by telephone, plus reimbursement for certain expenses. Additionally, the Chairman of the Board and Audit Committee Chairman each receive an annual retainer of $10,000 and the Chairman of the Nominations Committee receives $1,000 for each meeting attended. The fees are allocated across the series of the Trust and BB&T Variable Insurance Funds based upon relative net assets.
BB&T AM’s Chief Compliance Officer (“CCO”) serves as the Fund’s CCO. The CCO’s compensation is reviewed and approved by the Fund’s Board and paid by BB&T AM. However, the Fund reimburses BB&T AM for its allocable portion of the CCO’s salary. As a result, the CCO fee paid by the Fund is only part of the total compensation received by the CCO. If any, expenses incurred for the fund are reflected on the Statement of Operations as “Chief Compliance Officer fees”.
5. Federal Income Tax Information:
The Fund adopted the provisions of FASB Interpretation No. 48 (“FIN48”), Accounting for Uncertainty in Income Taxes, on June 29, 2007 and FIN48 was applied to all open
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SEPTEMBER 30, 2008
tax years (October 31, 2005, October 31, 2006, September 30, 2007). The implementation of FIN48 resulted in no material liability for unrecognized tax benefits and no material change to the beginning net asset value of the Fund. As of and during the period ended September 30, 2008, the Fund did not have a liability for any unrecognized tax benefits. The Fund recognizes interest and penalties, if any, related to unrecognized tax benefits as income tax expense in the Statements of Operations. During the period, the Fund did not incur any interest or penalties.
The amount and character of income and capital gain distributions to be paid, if any, are determined in accordance with federal income tax regulations, which may differ from GAAP. These differences are primarily due to differing book and tax treatments for wash sales and reclass of distributions. Permanent book and tax differences relating to shareholder distributions resulted in reclassifications to undistributed net investment income (loss), accumulated net realized gain (loss) and paid in capital. Permanent book-tax differences relating to distributions received from REITs, if any, are not included in ending undistributed net investment income (loss) for the purposes of calculating net investment income (loss) per share in the financial highlights. These reclassifications had no impact on the net assets or net asset value of the Fund. Accordingly, the following permanent differences have been reclassified to/from the following accounts as of September 30, 2008:
Undistributed Net | Accumulated Realized | |
| $(1,688) | $1,688 |
The tax character of distributions paid during the fiscal year ended September 30, 2008, period ended September 30, 2007 and the fiscal year ended October 31, 2006, were as follows:
| Ordinary Income | Long-Term Capital Gain | Total | |||||||
2008 | $ | 2,550,158 | $ | 4,929,138 | $ | 7,479,296 | |||
2007 | 2,289,539 | 11,970,773 | 14,260,312 | ||||||
2006 | 810,653 | 14,909,462 | 15,720,115 | ||||||
As of September 30, 2008, the components of Distributable Earnings on a tax basis were as follows:
Undistributed Long-Term Capital Gains | $ | 629,908 | ||
Unrealized Depreciation | (6,161,341 | ) | ||
Total Distributable Earnings | $ | (5,531,433 | ) | |
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SEPTEMBER 30, 2008
The federal tax cost and aggregate gross unrealized appreciation and depreciation on investments held by the Fund at September 30, 2008, were as follows:
Federal | Aggregate Gross | Aggregate Gross | Net Unrealized | |||
| $31,649,420 | $1,228,040 | $ (7,389,381) | $(6,161,341) |
6. Other:
At September 30, 2008, 55% of total shares outstanding were held by two record shareholders of the Fund each owning 10% or greater of the aggregate total shares outstanding.
In the normal course of business, the Fund enters into contracts that provide general indemnifications. The Fund’s maximum exposure under these arrangements is dependent on future claims that may be made against the Fund and, therefore, cannot be established; however, based on experience, the risk of loss from such claim is considered remote.
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To the Shareholders and Board of Trustees of
BB&T Funds:
We have audited the accompanying statement of assets and liabilities of the Sterling Capital Small Cap Value Fund (the “Fund”), one of the funds constituting BB&T Funds, including the schedule of portfolio investments, as of September 30, 2008, and the related statement of operations for the year then ended, the statements of changes in net assets for each of the years or periods in the three-year period then ended, and the financial highlights for each of the years or periods in the six-year period then ended. These financial statements and financial highlights are the responsibility of the Funds’ management. Our responsibility is to express an opinion on these financial statements and financial highlights based on our audit.
We conducted our audit in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements and financial highlights are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. Our procedures included confirmation of securities owned as of September 30, 2008, by correspondence with custodians and brokers or by other appropriate auditing procedures where replies from brokers were not received. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinion.
In our opinion, the financial statements and financial highlights referred to above present fairly, in all material respects, the financial position of the Sterling Capital Small Cap Value Fund as of September 30, 2008, the results of its operations for the year then ended, the changes in its net assets for each of the years or periods in the three-year period then ended, and the financial highlights for each of the years or periods in the six-year period then ended, in conformity with U.S. generally accepted accounting principles.
New York, New York
November 26, 2008
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As a shareholder of the BB&T Funds, you incur two types of costs: (1) transaction costs and (2) ongoing costs, including management fees; and other Fund expenses.
These examples are intended to help you understand your ongoing costs (in dollars) of investing in the Fund and to compare these costs with the ongoing costs of investing in other mutual funds.
These examples are based on an investment of $1,000 invested at the beginning of the period and held for the entire period from April 1, 2008 through September 30, 2008.
• 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 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.
• Hypothetical Example for Comparison Purposes. The table below provides information about hypothetical account values and hypothetical expenses based on the Fund’s actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Fund’s actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balances 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 costs of owning different funds. In addition, if these transactional costs were included, your costs would have been higher.
| Beginning Account Value 04/01/08 | Ending Account Value 09/30/08 | Expenses Paid During Period* 04/01/08 – 09/30/08 | Annualized Expense Ratio During Period 04/01/08 – 09/30/08 | |||||||||
Sterling Capital Small Cap Value Fund — Sterling Shares | ||||||||||||
Actual Fund Return | $ | 1,000.00 | $ | 965.80 | $ | 5.70 | 1.26 | % | ||||
Hypothetical 5% Return | $ | 1,000.00 | $ | 1,019.20 | $ | 5.86 | 1.26 | % | ||||
| * | Expenses are equal to the average account value over the period multiplied by the Fund’s annualized expense ratio, multiplied by the number of days in the most recent period ended divided by the number of days in the fiscal year (to reflect the one-half year period). |
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The Board of Trustees of BB&T Funds (the “Trust”), at a meeting held on August 25-26, 2008, formally considered the continuance of the investment advisory agreement between Sterling Capital Management LLC (the “Adviser”) and the Trust (the “Advisory Agreement”) with respect to the Sterling Capital Small Cap Value Fund (the “Fund”).
The Trustees reviewed extensive material in connection with their consideration of the Advisory Agreement, including data from an independent provider of mutual fund data (as assembled by the Fund’s administrator), which included comparisons with industry averages for comparable funds for advisory fees, Rule 12b-1 fees and total fund expenses. The data reflected the Adviser’s fee waivers in place, as well as the Adviser’s contractual investment advisory fee levels. The Board was assisted in its review by independent legal counsel, who provided a memorandum detailing the legal standards for review of the Advisory Agreement. The Board received a detailed presentation by the Adviser, which included an analysis of the Fund’s performance and investment process. The Board also received profitability information from the Adviser. The Independent Trustees deliberated outside the presence of management and the Adviser.
In their deliberations, each Trustee attributed different weights to various factors involved in an analysis of the Advisory Agreement, and no factor alone was considered determinative. The Trustees determined that the overall arrangements between the Trust and the Adviser, as provided in the Advisory Agreement, were fair and reasonable and that the approval of the Advisory Agreement was in the best interests of the Fund and its shareholders.
The matters addressed below were considered and discussed by the Trustees in reaching their conclusions.
Nature, Extent and Quality of Services Provided by the Adviser
The Trustees received and considered information regarding the nature, extent, and quality of the services provided to the Fund under the Advisory Agreement. The Trustees took into account information furnished throughout the year at Trustee meetings, as well as materials furnished specifically in connection with the annual review process. The Trustees considered the background and experience of the Adviser’s senior management and the expertise of investment personnel of the Adviser responsible for the day-to-day management of the Fund. The Trustees considered the overall reputation, and the capabilities and commitment of the Adviser to provide high quality service to the Fund, and the Trustees’ overall confidence in the Adviser’s integrity.
The Trustees received information concerning the Adviser’s expertise in value investing and the investment philosophy and investment processes applied by the Adviser in managing the Fund. The Trustees reviewed the Adviser’s Form ADV as
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well. The Trustees also considered information regarding regulatory compliance and compliance with the investment policies of the Fund. The Trustees evaluated the procedures of the Adviser designed to fulfill the Adviser’s fiduciary duty to the Fund with respect to possible conflicts of interest, including the Adviser’s codes of ethics (regulating the personal trading of its officers and employees).
Based on their review, the Trustees concluded that, with respect to the quality and nature of services to be provided by the Adviser, the scope of responsibilities was consistent with mutual fund industry norms, and that the quality of the services was satisfactory.
Investment Performance
The Trustees considered performance results of the Fund in absolute terms and relative to benchmark and peer group performance. It was noted that the Fund had underperformed its benchmark and peer group for the year-to-date. After reviewing the longer-term performance of the Fund, and taking into consideration the management style, investment strategies, and prevailing market conditions during the prior year and for longer periods, the Trustees concluded that the Adviser had an acceptable long-term track record.
Based on recent performance, the Trustees determined that the Fund be placed under the close supervision of the Board, and subject to increased focus and review at upcoming meetings of the Board.
Cost of Services, Including the Profits Realized by the Adviser and Affiliates
The Trustees considered peer group comparable information with respect to the advisory fees charged by the Adviser to the Fund, taking into consideration both contractual and actual (i.e., after waiver) fee levels. The Trustees concluded that the investment advisory fees fell within an acceptable range as compared to peer groups, particularly in light of the fee waivers that would be continued in the upcoming year.
As part of their review, the Trustees considered benefits to the Adviser aside from investment advisory fees. The Trustees also considered benefits to the Adviser’s affiliates, including administration fees received by BB&T Asset Management, Inc.
Consideration of the reasonableness of advisory fees also took into account information regarding the profitability of the Adviser. With respect to such information, the Trustees recognized that profitability data was unaudited and represented the Adviser’s own determination of revenues from the contractual services provided to the Fund, less expenses of providing such services. Expenses include direct and indirect costs and were calculated using an allocation methodology developed by the Adviser. The Trustees also recognized that it is difficult to make comparisons of profitability from fund investment advisory contracts, because comparative information is not generally publicly available and is affected by numerous factors.
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Based on their review, the Trustees concluded that the profitability to the Adviser, as a result of its relationships with the Fund, was acceptable. The Board also concluded that the fees under the Advisory Agreement were fair and reasonable, in light of the services and benefits provided to the Fund.
Economies of Scale
The Trustees also considered whether fee levels reflect economies of scale and whether economies of scale would be produced by the growth of the Fund’s assets. The Trustees found that the asset levels of the Fund had declined during the past year, were not currently so large as to warrant formal contractual breakpoints, and that the fee waivers were a reasonable way to provide the benefits of economies of scale to shareholders at this time. The Adviser noted that fee waivers would remain in place in order to cap the total expense ratio at 1.25%.
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Overall responsibility for the management of the Fund rests with its Board of Trustees (“Trustees”), who are elected by the Shareholders of the Fund. The Trustees elect the officers of the Fund to supervise actively its day-to-day operations. The names of the Trustees, birth date, term of office and length of time served, principal occupations during the past five years, number of portfolios overseen and directorships held outside of the Fund are listed in the two tables immediately following. The business address of the persons listed below is 434 Fayetteville Street Mall, 5th Floor, Raleigh, North Carolina 27601.
| INDEPENDENT TRUSTEES | ||||||||||
Name And Age | Position(s) Held With The Funds | Term Of Office Length Of Time | Principal Occupation During The Past 5 Years | Number Of Portfolios In Fund Complex Overseen By Trustee* | Other Directorships Held By | |||||
Thomas W. Lambeth Birthdate: 01/35 | Trustee Chairman of the Board of Trustees | Indefinite, 8/92 – Present | From January 2001 to present, Senior Fellow, Z. Smith Reynolds Foundation; from 1978 to January 2001, Executive Director, Z. Smith Reynolds Foundation. | 30 | None | |||||
Drew T. Kagan Birthdate: 02/48 | Trustee | Indefinite, 8/00 – Present | From December 2003 to present, President and Director, Montecito Advisors, Inc.; from March 1996 to December 2003, President, Investment Affiliate, Inc. | 30 | None | |||||
Laura C. Bingham Birthdate: 11/56 | Trustee | Indefinite, 2/01 – Present | From July 1998 to present, President of Peace College. | 30 | None | |||||
Douglas R. Van Scoy Birthdate: 11/43 | Trustee | Indefinite 5/04 – present | Retired; from November 1974 to July 2001, employee of Smith Barney (investment banking), most recently as the Director of Private Client Group and Senior Executive Vice President | 30 | None | |||||
James L. Roberts Birthdate: 11/42 | Trustee | Indefinite 11/04 – present | Retired; from November 2006 to present, Director, Grand Mountain Bancshares, Inc.; from January 1999 to December 2003, President, CEO and Director, Covest Bancshares, Inc. | 30 | None | |||||
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The following table shows information for the trustee who is an “interested person” of the Funds as defined in the 1940 Act*:
| INTERESTED TRUSTEE | ||||||||||
Name And Age | Position(s) Held With BB&T Funds | Term Of Office Length Of Time | Principal Occupation During The Past 5 Years | Number Of Portfolios In Fund Complex Overseen By Trustee* | Other Directorships Held By | |||||
Keith F. Karlawish** Birthdate: 08/64 | Trustee | Indefinite, 6/06 – 11/08 | From May 2002 to November 2008, President, BB&T Asset Management, Inc.; from 1996 to 2002, Senior Vice President and Director of Fixed Income, BB&T Asset Management | 30 | N/A | |||||
| * | The BB&T Fund Complex consists of two open-end investment management companies: BB&T Funds and BB&T Variable Insurance Funds. |
| ** | Mr. Karlawish is treated by the Funds as an “interested person” (as defined in Section 2(a)(19) of the 1940 Act) of the Funds. Mr. Karlawish is an “interested person” because he owns shares of BB&T Corporation and was President of BB&T Asset Management, Inc., an affiliate of the Adviser until November 2008. |
The Fund’s Statement of Additional Information includes information about the Fund’s trustees. To receive your free copy of the Statement of Additional Information, call toll free: 1-800-453-7348.
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The following table shows information for officers of the Fund:
| OFFICERS | ||||||
Name And Age | Position(s) Held With The Funds | Term Of Office And Length Of Time Served | Principal Occupation During The Past 5 Years | |||
| Keith F. Karlawish Birthdate: 08/64* | President | Indefinite, 2/05 – 11/08 | From May 2002 to November 2008, President, BB&T Asset Management, Inc.; from 1996 to 2002, Senior Vice President and Director of Fixed Income, BB&T Asset Management, Inc. | |||
| E.G. Purcell, III Birthdate: 01/55** | Vice President and Secretary | Indefinite, 11/00 –Present | From 1995 to present, Senior Vice President, BB&T Asset Management, Inc. and its predecessors | |||
| Todd M. Miller Birthdate: 9/71 | Vice President | Indefinite, 8/05 –Present | From June 2005 to present, Mutual Fund Administrator, BB&T Asset Management, Inc.; from May 2001 to May 2005, Manager, BISYS Fund Services | |||
| Clinton L. Ward Birthdate: 11/69 | Chief Compliance and Anti-Money Laundering Officer | Indefinite, 12/06 –Present | From July 2004 to present, Chief Compliance Officer and Secretary, BB&T Asset Management, Inc.; from January 2002 to July 2004, Compliance Analyst, Wachovia Bank, N.A.; from November 1999 to January 2002, Compliance Manager — Mutual Fund Compliance, Banc of America Capital Management, LLC | |||
| Andrew J. McNally Birthdate: 12/70 | Treasurer | Indefinite, 12/06 –Present | From December 2000 to present, Vice President and Senior Director, Fund Accounting and Administration Department, PNC Global Investment Servicing | |||
| Avery Maher Birthdate: 02/45 | Assistant Secretary | Indefinite 12/06 –Present | From March 2006 to present, Vice President and Counsel, Regulatory Administration Department, PNC Global Investment Servicing.; from October 2004 to August 2005, Vice President and Assistant General Counsel, JPMorgan Asset Management; from 1992 to 2004, Second Vice President and Assistant Secretary, John Hancock Advisers, LLC | |||
| * | Mr. Karlawish resigned as President of the Funds in November 2008 and was replaced by E.G. Purcell, III. |
| ** | Effective November 2008, Mr. Purcell was named President of the Funds. He retained the Office of Secretary as well. |
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For shareholders that do not have an September 30, 2008, tax year end, this notice is for informational purposes only. For shareholders with an September 30, 2008, tax year end, please consult your tax advisor as to the pertinence of this notice. For the fiscal period ended September 30, 2008, the Fund is designating the following items with regard to distributions paid during the year.
Long | Ordinary Income Distributions | Qualifying Dividends(1) | Qualifying Dividend Income(2) | Qualifying Short-Term Capital Gain(3) | Qualifying Interest Income | |||||
| 65.91% | 34.09% | 24.49% | 24.57% | 99.93% | 1.95% |
| (1) | Qualifying dividends represent dividends which qualify for the corporate dividends received deduction and are reflected as a percentage of “Ordinary Income Distributions”. |
| (2) | The percentage in this column represents the amount of “Qualifying Dividend Income” as created by the Jobs and Growth Tax Relief Reconciliation Act of 2003 and is reflected as a percentage of “Ordinary Income Distributions”. It is the intention of the Fund to designate the maximum amount permitted by the law. |
| (3) | The percentage in this column represents the amount of “Qualifying Short-Term Capital Gain” as created by the American Jobs Creation Act of 2004 and is reflected as a percentage of short-term capital gain distributions that is exempt from U.S. withholding tax when paid to foreign investors. |
| The information reported herein may differ from the information and distributions taxable to the shareholders for the calendar year ending December 31, 2008. Complete information will be computed and reported in conjunction with your Form 1099-DIV. |
30
Sterling Capital Small Cap Value Fund
P.O. Box 9652
Providence, RI 02940-9652
1-866-450-3722
Adviser:
Sterling Capital Management, LLC
Two Morrocroft Centre
4064 Colony Road, Suite 300
Charlotte, NC 28211
Distributor:
BB&T AM Distributors, Inc.
760 Moore Road
King of Prussia, PA 19406
Administrator:
BB&T Asset Management, Inc.
434 Fayetteville Street Mall
5th Floor
Raleigh, NC 27601
Legal Counsel:
Ropes and Gray LLP
One Metro Center
700 12th Street, N.W.
Suite 900
Washington D.C. 20005
Transfer Agent:
PNC Global Investment Servicing (U.S.) Inc.
760 Moore Road
King of Prussia, PA 19406
Independent Registered Public Accounting Firm
KPMG LLP
345 Park Avenue
New York, New York 10154
This information must be preceded or accompanied by a current prospectus for the Fund described.
A25-AR-0908
| Item 2. | Code of Ethics. |
| (a) | The registrant, as of the end of the period covered by this report, has adopted a code of ethics that applies to the registrant’s principal executive officer, principal financial officer, principal accounting officer or controller, or persons performing similar functions, regardless of whether these individuals are employed by the registrant or a third party. |
| (c) | There have been no amendments, during the period covered by this report, to a provision of the code of ethics that applies to the registrant’s principal executive officer, principal financial officer, principal accounting officer or controller, or persons performing similar functions, regardless of whether these individuals are employed by the registrant or a third party, and that relates to any element of the code of ethics description. |
| (d) | The registrant has not granted any waivers, including an implicit waiver, from a provision of the code of ethics that applies to the registrant’s principal executive officer, principal financial officer, principal accounting officer or controller, or persons performing similar functions, regardless of whether these individuals are employed by the registrant or a third party, that relates to one or more of the items set forth in paragraph (b) of this item’s instructions. |
| Item 3. | Audit Committee Financial Expert. |
As of the end of the period covered by the report, the registrant’s board of trustees has determined that Drew Kagan is qualified to serve as an audit committee financial expert serving on its audit committee and that he is “independent,” as defined by Item 3 of Form N-CSR.
| Item 4. | Principal Accountant Fees and Services. |
Audit Fees
| (a) | The aggregate fees billed for each of the last two fiscal years for professional services rendered by the principal accountant for the audit of the registrant’s annual financial statements or services that are normally provided by the accountant in connection with statutory and regulatory filings or engagements for those fiscal years are $432,000 for 2008 and $360,000 for 2007. |
Audit-Related Fees
| (b) | The aggregate fees billed in each of the last two fiscal years for assurance and related services by the principal accountant that are reasonably related to the performance of the audit of the registrant’s financial statements and are not reported under paragraph (a) of this Item are $0 for 2008 and $0 for 2007. |
Tax Fees
| (c) | The aggregate fees billed in each of the last two fiscal years for professional services rendered by the principal accountant for tax compliance, tax advice, and tax planning are $93,000 for 2008 and $90,000 for 2007. |
Fees for both 2008 and 2007 relate to the preparation of federal income and excise tax returns and review of capital gains distribution calculations.
All Other Fees
| (d) | The aggregate fees billed in each of the last two fiscal years for products and services provided by the principal accountant, other than the services reported in paragraphs (a) through (c) of this Item are $0 for 2008 and $0 for 2007. |
| (e)(1) | Disclose the audit committee’s pre-approval policies and procedures described in paragraph (c)(7) of Rule 2-01 of Regulation S-X. |
Except as permitted by Rule 2-01(c)(7)(i)(C) of Regulation S-X, the Trust’s Audit Committee must pre-approve all audit and non-audit services provided by the independent accountants relating to the operations or financial reporting of the funds. Prior to the commencement of any audit or non-audit services to a fund, the Audit Committee reviews the services to determine whether they are appropriate and permissible under applicable law.
| (e)(2) | The percentage of services described in each of paragraphs (b) through (d) of this Item that were approved by the audit committee pursuant to paragraph (c)(7)(i)(C) of Rule 2-01 of Regulation S-X are as follows: |
(b) N/A
(c) 100%
(d) N/A
| (f) | The percentage of hours expended on the principal accountant’s engagement to audit the registrant’s financial statements for the most recent fiscal year that were attributed to work performed by persons other than the principal accountant’s full-time, permanent employees was 0%. |
| (g) | The aggregate non-audit fees billed by the registrant’s accountant for services rendered to the registrant, and rendered to the registrant’s investment adviser (not including any sub-adviser whose role is primarily portfolio management and is subcontracted with or overseen by another investment adviser), and any entity controlling, controlled by, or under common control with the adviser that provides ongoing services to the registrant for each of the last two fiscal years of the registrant was $385,000 for 2008 and $465,500 for 2007. |
| (h) | The registrant’s audit committee of the board of directors has considered whether the provision of non-audit services that were rendered to the registrant’s investment adviser (not including any |
sub-adviser whose role is primarily portfolio management and is subcontracted with or overseen by another investment adviser), and any entity controlling, controlled by, or under common control with the investment adviser that provides ongoing services to the registrant that were not pre-approved pursuant to paragraph (c)(7)(ii) of Rule 2-01 of Regulation S-X is compatible with maintaining the principal accountant’s independence. |
| Item 5. | Audit Committee of Listed registrants. |
Not applicable.
| Item 6. | Investments. |
| (a) | Schedule of Investments in securities of unaffiliated issuers as of the close of the reporting period is included as part of the report to shareholders filed under Item 1 of this form. |
| (b) | 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 effectiveness of the design and operation of the Registrant’s disclosure controls and procedures as of a date within 90 days of the filing date of this report, that the design and operation of such procedures are effective to provide reasonable assurance 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 1940 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) | Code of ethics, or any amendment thereto, that is the subject of disclosure required by Item 2 is attached hereto. |
| (a)(2) | Certifications pursuant to Rule 30a-2(a) under the 1940 Act and Section 302 of the Sarbanes-Oxley Act of 2002 are attached hereto. |
| (a)(3) | Not applicable. |
| (b) | Certifications pursuant to Rule 30a-2(b) under the 1940 Act and Section 906 of the Sarbanes- Oxley Act of 2002 are attached hereto. |
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/ E.G. Purcell, III | |
| E.G. Purcell, III, President | ||
| (principal executive officer) | ||
Date | December 4, 2008 |
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/ E.G. Purcell, III | |
| E.G. Purcell, III, President | ||
| (principal executive officer) |
Date | December 4, 2008 |
By (Signature and Title)* | /s/ Andrew J. McNally | |
| Andrew J. McNally, Treasurer | ||
| (principal financial officer) |
Date | December 4, 2008 |
* | Print the name and title of each signing officer under his or her signature. |