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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM N-CSR
CERTIFIED SHAREHOLDER REPORT OF REGISTERED
MANAGEMENT INVESTMENT COMPANIES
Investment Company Act file number 811-06557
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STI Classic Funds
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(Exact name of registrant as specified in charter)
BISYS Fund Services, 3435 Stelzer Road Columbus, Ohio 43219
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(Address of principal executive offices) (Zip code)
BISYS Fund Services, 3435 Stelzer Road Columbus, Ohio 43219
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(Name and address of agent for service)
Registrant's telephone number, including area code: 614-470-8000
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Date of fiscal year end: 03/31/05
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Date of reporting period: 03/31/05
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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, 450 Fifth Street, NW,
Washington, DC 20549-0609. The OMB has reviewed this collection of information
under the clearance requirements of 44 U.S.C. Section 3507.
ITEM 1. REPORTS TO STOCKHOLDERS.
Include a copy of the report transmitted to stockholders pursuant to
Rule 30e-1 under the Act (17 CFR 270.30e-1).
2005 A N N U A L R E P O R T
STI CLASSIC EQUITY FUNDS
March 31, 2005
STI CLASSIC FUNDS
TABLE OF CONTENTS
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STI CLASSIC EQUITY FUNDS ANNUAL REPORT MARCH 31, 2005
President and CIO Letter to Shareholders .................................. 1
MANAGEMENT DISCUSSION AND ANALYSIS
Aggressive Growth Stock Fund .............................................. 3
Balanced Fund ............................................................. 5
Capital Appreciation Fund ................................................. 7
Emerging Growth Stock Fund ................................................ 9
Growth and Income Fund .................................................... 11
International Equity Fund ................................................. 13
International Equity Index Fund ........................................... 15
Life Vision Aggressive Growth Fund ........................................ 17
Life Vision Conservative Fund ............................................. 19
Life Vision Growth and Income Fund ........................................ 21
Life Vision Moderate Growth Fund .......................................... 23
Mid-Cap Equity Fund ....................................................... 25
Mid-Cap Value Equity Fund ................................................. 27
Small Cap Growth Stock Fund ............................................... 29
Small Cap Value Equity Fund ............................................... 31
Strategic Quantitative Equity Fund ........................................ 33
Tax Sensitive Growth Stock Fund ........................................... 35
Value Income Stock Fund ................................................... 37
SCHEDULE OF PORTFOLIO INVESTMENTS ......................................... 39
Notes to Schedule of Portfolio Investments ................................ 87
Statements of Assets and Liabilities ...................................... 89
Statements of Operations .................................................. 93
Statements of Changes in Net Assets ....................................... 99
Financial Highlights ...................................................... 105
Notes to Financial Financial Highlights ................................... 117
Notes to Financial Statements ............................................. 118
Report of Independent Registered Public Accounting Firm ................... 136
Trustees and Officers of the STI Classic Funds ............................ 137
Expense Examples .......................................................... 139
Special Meeting of Shareholders ........................................... 142
PRESIDENT AND CIO LETTER TO SHAREHOLDERS
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MARCH 31, 2005
Dear Valued STI Classic Funds Shareholder,
The STI Classic Funds changed its official fiscal year end from May 31 to March
31. As a result, the "annual" shareholder letter this year will cover the 10
month period from June 1, 2004 through March 31, 2005. A great many pressures,
policies, and events took place during this shorter time frame, and we will
provide our perspective on how this has affected the direction and pace of the
economy and financial markets.
Amid a firming economic backdrop and despite rising "headwinds," both the equity
and bond markets registered net gains in the 10 month period ended March 31,
2005. The large-cap benchmark S&P 500 stock index rose 6.9% on a total return
basis, while the Lehman Aggregate Bond Index gained 4.3%, though the path to
both performances was anything but straight. Equities hovered in a trading range
through the summer, before enjoying a post-election rally, while bond yields
fell steadily through October, before bottoming and moving higher in the first
quarter this year.
The economy demonstrated slow but steady and sustainable improvement throughout
the past 10 months. For example, the stimulative effects of the previous tax
cuts and mortgage rate declines faded as expected, and were gradually replaced
with employment and income gains. Headline inflation remained near cycle lows
for much of the period, though a combination of higher oil prices and emerging
corporate pricing power signaled a turning point and an emerging upward trend.
While the handoff from stimulus to sustainability was not exactly smooth, the
evidence was adequate to convince the Federal Reserve Board (the "Fed") that the
downside risks to the expansion were sufficiently reduced to begin raising
short-term interest rates from the 1% low. Over the ensuing months, the Fed
raised the overnight fed funds rate a total of seven times to 2.75% by March 31.
Several headwinds emerged as visible sources of restraint on growth during the
period, and their influence persists today. These include:
o Higher energy prices: reduces discretionary income and raises operating costs
o Rising interest rates: raises cost of capital and slows housing
o Weaker dollar: raises the costs of imports and keeps upward pressure on rates
o Lower federal deficit: reduction of stimulus to supplement internal economic
strength
In the fixed-income markets, three important trends affected relative
performance and our strategy. The first trend was higher short-term interest
rates and the flattening effect exerted on the shape of the yield curve. The
spread between short and long maturity rates was near an extreme level, so we
implemented a "barbell" maturity structure in our bond portfolios to take
advantage of this possibility. The second factor was a further narrowing in the
credit yield spread between Treasury and Corporate securities, due to signs of
economic strength and improving liquidity. We maintained overweight positions in
corporate bonds for much of the time to take advantage of this relative
outperformance. Finally, the rising risk of higher inflation, combined with
favorable supply/demand factors prompted us to establish an overweight position
in Treasury Inflation-Index Securities, commonly referred to as TIPS. These
strategies proved helpful to our shareholders as longer and shorter-term
securities outperformed the middle of the yield curve, and corporate bonds
outperformed Treasuries.
In the equity markets, oil and commodity price increases dominated stock
performance. Energy stocks were the dominant sector, increasing 44% during the
ten months, followed by utilities (+28%) and materials (+20%), though these last
two sectors have relatively small market capitalizations. Performance in the
larger technology (-3%), health care (-1%), and finance (2%) sectors lagged. The
surge in energy stocks helped the value style outperform growth, while
international stocks significantly outperformed the S&P 500. Also, small-cap
stocks extended their outperformance string versus large-caps.
1
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Looking ahead, we remain positive on the outlook for the economy and corporate
profits, but the rate of growth in both is likely to slow closer to historical
averages, due to rising interest rates and more difficult comparisons,
respectively. Economic growth may slow temporarily over the near term, but we
expect real Gross Domestic Product(1) growth rate to match or slightly exceed
the 3.0% average. We believe core inflation may trend moderately higher,
supporting the Fed's plan to raise interest rates gradually in the months ahead,
and the dollar could be under downward pressure.
We believe equities can perform well relative to bonds in the projected
environment, despite the headwinds discussed above, though the sectors with the
strongest returns are likely to be quite different from those of the past ten
months. In the bond markets, we see continuing growth and emerging inflation
pushing bond yields moderately higher. However, with the yield curve relatively
flat and credit yield spreads at narrow levels, relative outperformance in
bonds, like stocks, should come from different sectors in the period ahead.
In closing, we want to take this opportunity to thank you again for investing in
STI Classic Funds. We are continuing efforts to broaden fund offerings and
expand choices, while maintaining our unwavering commitment to the strong,
independent research and consistent investment discipline that has helped make
STI Classic Funds a premier source of value for our clients.
Sincerely,
/s/ Douglas S. Phillips
Douglas S. Phillips, CFA
President and Chief Investment Officer Trusco
Capital Management
(1)The Gross Domestic Product ("GDP") measures the market value of the goods and
services produced by labor and property in the United States.
2
AGGRESSIVE GROWTH STOCK FUND
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PORTFOLIO MANAGER(S):
- - Nancy Zevenbergen, CFA
- - Brooke de Boutray, CFA
- - Leslie Tubbs, CFA
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INVESTMENT CONCERNS
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Equity securities (stocks) are more volatile and carry more risk than other
forms of investments, including investments in high-grade fixed income
securities. The net asset value per share of this Fund will fluctuate as the
value of the securities in the portfolio changes. Common stocks, and funds
investing in common stocks, generally provide greater return potential when
compared with other types of investments.
Mid capitalization companies typically have a higher risk of failure and
historically have experienced a greater degree of volatility.
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MANAGEMENT DISCUSSION & ANALYSIS
- --------------------------------------------------------------------------------
Q: HOW DID THE FUND PERFORM AGAINST ITS BENCHMARK FOR THE PERIOD ENDED MARCH
31, 2005?
A: Volatile energy prices, rising interest rates, inflation fears, and
election uncertainties have dictated market direction, both positive and
negative, over the last 10 months. Risk tolerance waned, depressing higher
valuation companies and favoring value style investing, while smaller
capitalized issues (especially mid-sized) outperformed larger counterparts.
The Fund produced a total return of -1.10% (T Shares), trailing the
positive 0.76% return of the Russell 3000(R) Growth Index for the 10 months
ended March 31, 2005.
Concentrated positions in Health Care were the prime performance culprits,
as the drug/pharmaceutical industry continues to experience difficulties.
The Fund's top weighted sector, Consumer Discretionary, also underperformed
as internet issues declined on the perception of slowing growth in
search-related advertising. Fund stock selection in Technology (computer
technology and computer services/ software systems) and Finance (banks and
finance/small loan) outperformed, posting positive gains against negative
benchmark sector returns. Underweighted Consumer Staples and
Utilities/Telecom Services (both double-digit gainers) minimally impacted
the Fund's performance.
Q: WHAT FACTORS INFLUENCED THE FUND'S PERFORMANCE FOR THE PERIOD ENDED MARCH
31, 2005?
A: The benchmark Health Care sector contains more than 15% in
drug/pharmaceutical and biotechnology issues, we believe it's no wonder
that returns have been dismal throughout the past ten months. Concerns
abound: pricing, regulation, reimbursement, patent expiry, and FDA
conservatism have created an oppressive investment landscape. Fund
positions trailed the benchmark, as higher valuation biotechnology and
specialty pharmaceuticals declined, despite minimal change in fundamentals.
Forest Laboratories, Inc. continued to struggle as wholesalers worked
through inventories due to weaker antidepressant demand. Medicis
Pharmaceutical Corp. also underperformed, as generic competition for their
antibiotic acne therapy prepares to enter the market. Johnson & Johnson,
Inc. and Gilead Sciences, Inc. both gained during the period, providing
sector highlights.(1)
Until first quarter 2005, Consumer Discretionary holdings were the top
aggregate gainers for the Fund, but the perception of slowing growth in
search-related advertising weighed on the Internet group in general, while
eBay Inc. confronted company specific growth issues, composing most of the
sector's decline.(1)
Within Technology, a small number of overweighted issues supported Fund
performance, but not sufficient to fully offset the sector's decline. While
few issues performed well (Apple Computer, Inc. and Cognizant Technology
Solutions Corp. were again the top Fund performers), the sector
encompassed a handful of companies with below market returns. Disappointing
earnings preannouncement for UTStarcom, Inc. sent the stock sharply lower.
Management attributed the shortfall to a slowing Chinese economy, the
maturation of the PAS market, and lower than expected capex from key
Chinese service providers. PAS visibility continued to deteriorate and the
position was sold.(1)
Fund Finance stock selection was the largest positive contributor to
performance, as all industries met or exceeded comparable benchmark
returns. The majority of Fund holdings posted positive gains for the
period, which was exceptional, given negative relative sector returns.
Broad outperformance (banks, small loans and investment management) helped
achieve the positive return, highlighting Investors Financial Services
Corp. and SLM Corporation as top performers.+
Q: HOW DO YOU PLAN TO POSITION THE FUND, BASED ON MARKET CONDITIONS?
A: We firmly believe adhering to our investment process and philosophy through
all market environments is critical for achieving superior long-term
returns. Though our aggressive growth equity style may be out of favor
during specific market cycles, we remain steadfast in our commitment to
provide a Fund with companies exhibiting faster, sustainable growth
characteristics leading in the development and delivery of innovative
products and services. Though our active investment style and concentrated
Fund holdings can lead to more volatile performance over short time
periods, focusing on select companies positioned in industries exhibiting
leadership and secular growth profiles, we believe, should lead to stocks
appreciating ahead of the benchmark over the long-term.
3
AGGRESSIVE GROWTH STOCK FUND
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GROWTH OF $10,000 INVESTMENT (as of March 31, 2005)
[GRAPH]
AGGRESSIVE RUSSELL
GROWTH 3000(R)
STOCK FUND GROWTH
(T SHARES) INDEX
---------- -------
02/04 10000 10000
03/05 9880 9832
9660 9688
10000 9870
06/05 10180 10008
9320 9415
9130 9356
09/05 9460 9479
9620 9633
10170 10005
12/05 10700 10394
10040 10037
10100 10147
03/05 9890 9945
This chart assumes an initial hypothetical investment of $10,000 made on
2/23/04. Total return is based on net change in N.A.V. (net asset value)
assuming reinvestment of distributions. Returns shown on this page include
reinvestment of all dividends and other distributions.
The Funds performance is compared to the Russell 3000(R) Growth index which
measures the performance of those companies found in the Russell universe with
higher price-to-book ratios and higher forecasted growth values. The stocks in
this index are also members of either the Russell 1000(R) Growth or the Russell
2000(R) Growth indices. The index is unmanaged and does not reflect the
deduction of fees or taxes associated with a mutual fund, such as investment
management and fund accounting fees. Investors cannot invest directly in an
index, although they can invest in its underlying securities.
AVERAGE ANNUAL TOTAL RETURNS AS OF 3/31/05 (%)
----------------------------------------------
SINCE
AGGRESSIVE GROWTH STOCK FUND INCEPTION DATE 10 MONTH** 1 YEAR INCEPTION
- ---------------------------- -------------- ---------- ------ ---------
A SHARES WITHOUT SALES CHARGE 02/23/04 -1.50 -0.30 -1.45
WITH SALES CHARGE* -5.20 -4.00 -4.82
L SHARES WITHOUT CDSC 02/23/04 -1.91 -0.91 -2.00
WITH CDSC* -3.87 -2.89 -2.00
T SHARES 02/23/04 -1.10 0.10 -1.00
RUSSELL 3000(R) GROWTH INDEX 0.76 1.15
PAST PERFORMANCE DOES NOT GUARANTEE FUTURE RESULTS. THE PERFORMANCE DATA QUOTED
REPRESENTS PAST PERFORMANCE AND CURRENT RETURNS MAY BE LOWER OR HIGHER. TOTAL
RETURN FIGURES INCLUDE CHANGE IN SHARE PRICE, REINVESTMENT OF DIVIDENDS AND
CAPITAL GAINS AND DO NOT REFLECT TAXES THAT A SHAREHOLDER WOULD PAY ON FUND
DISTRIBUTIONS OR ON THE REDEMPTION OF FUND SHARES. THE INVESTMENT RETURN AND
PRINCIPAL VALUE WILL FLUCTUATE SO THAT AN INVESTOR'S SHARES, WHEN REDEEMED MAY
BE WORTH MORE OR LESS THAN THE ORIGINAL COST. FOR PERFORMANCE DATA CURRENT TO
THE MOST RECENT MONTH END, VISIT OUR WEBSITE AT WWW.STICLASSICFUNDS.COM.
*CLASS A SHARE PERFORMANCE REFLECTS THE MAXIMUM FRONT-END SALES CHARGE OF 3.75%
AND CLASS L SHARES REFLECT THE MAXIMUM CDSC (CONTINGENT DEFERRED SALES CHARGE)
OF 2.00% IN YEAR ONE ONLY.
**AGGREGATE TOTAL RETURN
[PIE CHART]
SECTOR WEIGHTINGS (as of March 31, 2005)(1)
as a percentage of total investments
Information Technology 37.0%
Health Care 17.7%
Consumer Discretionary 16.1%
Financials 11.7%
Consumer Staples 9.8%
Cash Equivalents 3.7%
Telecommunication Services 2.3%
Industrials 1.7%
(1) PORTFOLIO COMPOSITION IS SUBJECT TO CHANGE
4
BALANCED FUND
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PORTFOLIO MANAGER(S):
- - Robert J. Rhodes, CFA
- - John Talty, CFA
- - Perry Troisi
- --------------------------------------------------------------------------------
INVESTMENT CONCERNS
- --------------------------------------------------------------------------------
Equity securities (stocks) are more volatile and carry more risk than other
forms of investments, including investments in high-grade fixed income
securities. The net asset value per share of this Fund will fluctuate as the
value of the securities in the portfolio changes.
Bonds offer a relatively stable level of income, although bond prices will
fluctuate providing the potential for principal gain or loss. Intermediate-term,
higher-quality bonds generally offer less risk than longer-term bonds and a
lower rate of return.
- --------------------------------------------------------------------------------
MANAGEMENT DISCUSSION & ANALYSIS
- --------------------------------------------------------------------------------
Q: HOW DID THE FUND PERFORM AGAINST ITS BENCHMARK FOR THE PERIOD ENDED MARCH
31, 2005?
A: The Fund generally targets a stock/bond mix of 60% equities and 40% bonds.
This results in a benchmark for the portfolio weighted as 60% S&P 500 Index
and 40% Lehman Brothers Government/Credit Bond Index. In equity segment
strategy, the Fund emphasizes higher quality large and midcap stocks which
display strong current earnings growth, good fundamentals and reasonable
valuation. The bond portfolio seeks out sectors of the credit markets which
are investment grade and have attractive yields. The interest rate risk of
the bond portfolio, called "duration" in fixed income parlance, is kept at
neutral relative to the Lehman benchmark. This means that while the
portfolio bond return will vary as interest rates rise or fall, the return
variability will not be different from that of a diversified index of
bonds. Thus, the bond segment seeks to add value primarily through sector
and security selection as well as portfolio structure. The equity portfolio
will tend to do better when quality companies with growth characteristics
are doing well.
Q: WHAT FACTORS INFLUENCED THE FUND'S PERFORMANCE FOR THE PERIOD ENDED MARCH
31, 2005?
A: For the 10 month period ended March 31, 2005, the Fund returned 3.14% (T
Shares). This is behind its blended 60/40 benchmark return of 5.88%. The
bond component was satisfactory, but the equity segment fell short. We
believe the results are very understandable, albeit disappointing, in the
context of what occurred in the stock market. Specifically, within the S&P
500 cyclical commodity or low growth sectors had unusually robust gains,
such as Energy, +44%, and Utilities +28%. The Fund did have exposure to
Energy, but not as much as a couple of years ago when we deemed the sector
to be undervalued. Today it looks richly valued and the Fund weight in
Energy has been reduced. Similarly, we seldom use Utility stocks as the
sector does not have the growth we seek and furthermore looks expensively
valued versus history. In terms of sector emphasis, areas with better
growth favored by the Fund did not fare as well over the past 10 months.
For example, Information Technology returned -2.6%, Health care -1.3% and
Financials +1.9%. In general, "Value" style stocks outperformed "Growth",
as evidenced by the S&P 500 Barra Value Index return of +10.7%, while the
S&P 500 Growth Index rose only +3.1%.(1)
Q: HOW DO YOU PLAN TO POSITION THE FUND, BASED ON MARKET CONDITIONS?
A: We believe these trends in the stock market have produced very attractive
valuations for growth stocks. Growth is viewed skeptically today, just as
Value was roundly disregarded in late 1999. Predicting turning points in
investor style preferences is anything but exact, in terms of timing. Even
so, as corporate profit growth slows sharply later this year, we see growth
stocks gaining in appeal. This scenario is made all the more likely given
that valuations of all stocks but particularly growth compared to value
type stocks are currently very compressed. Thus, we have kept Fund equity
portfolio postured toward growth sectors. In the bond portfolio, credit
quality spreads are egregiously narrow, prompting a reduction in our
allocation to corporate grade securities.
5
BALANCED FUND
- --------------------------------------------------------------------------------
GROWTH OF $10,000 INVESTMENT (as of March 31, 2005)
[GRAPH]
LEHMAN BROTHERS
BALANCED FUND S&P 500 U.S. GOVERNMENT/ 60/40
(T SHARES) INDEX CREDIT INDEX HYBRID INDEX
------------- ------- ---------------- ------------
03/95 10000 10000 10000 10000
10650 10953 10649 10828.3
11140 11823 10853 11426.4
12/95 11745 12534 11358 12049.3
11997 13207 11093 12323.9
12371 13799 11145 12680.4
12683 14226 11341 13009.3
13170 15410 11688 13822.7
13275 15824 11587 13997.4
14763 18584 12009 15650.7
15540 19976 12430 16584.9
12/97 15954 20550 12828 17092.4
17378 23414 13023 18614.2
17967 24192 13364 19181.2
16944 21791 14025 18435.4
19073 26427 14044 20742
19185 27743 13876 21259.7
20102 29695 13724 22062.1
18968 27845 13798 21276.1
12/99 19962 31985 13742 23106.4
20682 32718 14112 23699.8
20809 31849 14316 23457.4
21052 31540 14728 23604.3
20919 29074 15371 22893.7
20210 25629 15862 21536.1
21046 27128 15910 22331.2
19807 23148 16668 20723.2
12/01 20966 25621 16678 22052.5
20816 25692 16599 22058.9
19574 22252 17222 20569.3
18630 18410 18203 18830.3
19177 19961 18518 19950
19129 19332 18823 19703.3
20147 22307 19486 21785.8
20205 22897 19388 22100
12/03 21104 25683 19383 23693.5
21630 26118 19980 24228.1
21369 26567 19346 24165.5
21265 26070 20034 24236.3
22283 28476 20195 25647.4
03/05 21810 27864 20060 25251.9
This chart assumes an initial hypothetical investment of $10,000 made on
3/31/95. Total return is based on net change in N.A.V. (net asset value)
assuming reinvestment of distributions. Returns shown on this page include
reinvestment of all dividends and other distributions.
The Funds performance is compared to the S&P 500 Index, the Lehman Brothers U.S.
Government/Credit Index and a Hybrid blend of 60/40 (60% of the S&P 500 Index
and 40% of the Lehman Brothers U.S. Government/Credit Index). The S&P 500 Index
is a market value-weighted index of 500 stocks designed to mimic the overall
U.S. equity market's industry weightings. The Lehman Brothers U.S. Government/
Credit Index is a composite index made up of the Lehman Brothers U.S. Government
Index, and the Lehman Brothers U.S. Credit Index, which include U.S. government,
Treasury and agency securities, as well as high-grade corporate bonds. The
indices are unmanaged and does not reflect the deduction of fees or taxes
associated with a mutual fund, such as investment management and fund accounting
fees. Investors cannot invest directly in an index, although they can invest in
its underlying securities.
AVERAGE ANNUAL TOTAL RETURNS AS OF 3/31/05 (%)
----------------------------------------------
SINCE
BALANCED FUND INCEPTION DATE 10 MONTH** 1 YEAR 3 YEAR 5 YEAR 10 YEAR INCEPTION
- ------------- -------------- ---------- ------ ------ ------ ------- ---------
A SHARES WITHOUT SALES CHARGE 01/03/94 2.94 0.56 1.26 0.75 7.77 7.03
WITH SALES CHARGE* -0.93 -3.21 -0.02 -0.02 7.36 6.66
L SHARES WITHOUT CDSC 06/14/95 2.29 -0.18 0.52 0.01 -- 6.57
WITH CDSC* 0.29 -2.15 0.52 0.01 -- 6.57
T SHARES 01/03/94 3.14 0.83 1.57 1.07 8.11 7.39
LEHMAN BROTHERS U.S. GOVERNMENT/
CREDIT INDEX 4.11 0.40 6.52 7.29 7.21 --
S&P 500 INDEX 6.92 6.69 2.74 -3.16 10.79
HYBRID INDEX (60/40) 5.58 4.23 4.61 1.28 9.71 --
PAST PERFORMANCE DOES NOT GUARANTEE FUTURE RESULTS. THE PERFORMANCE DATA QUOTED
REPRESENTS PAST PERFORMANCE AND CURRENT RETURNS MAY BE LOWER OR HIGHER. TOTAL
RETURN FIGURES INCLUDE CHANGE IN SHARE PRICE, REINVESTMENT OF DIVIDENDS AND
CAPITAL GAINS AND DO NOT REFLECT TAXES THAT A SHAREHOLDER WOULD PAY ON FUND
DISTRIBUTIONS OR ON THE REDEMPTION OF FUND SHARES. THE INVESTMENT RETURN AND
PRINCIPAL VALUE WILL FLUCTUATE SO THAT AN INVESTOR'S SHARES, WHEN REDEEMED
MAY BE WORTH MORE OR LESS THAN THE ORIGINAL COST. FOR PERFORMANCE DATA CURRENT
TO THE MOST RECENT MONTH END, VISIT OUR WEBSITE AT WWW.STICLASSICFUNDS.COM.
*CLASS A SHARE PERFORMANCE REFLECTS THE MAXIMUM FRONT-END SALES CHARGE OF 3.75%
AND CLASS L SHARES REFLECT THE MAXIMUM CDSC (CONTINGENT DEFERRED SALES CHARGE)
OF 2.00% IN YEAR ONE ONLY.
**AGGREGATE TOTAL RETURN.
[PIE CHART]
SECTOR WEIGHTINGS (as of March 31, 2005)(1)
as a percentage of total investments
Financials 23.9%
Information Technology 20.1%
Consumer Discretionary 16.6%
Industrials 14.7%
Health Care 9.6%
Consumer Staples 6.5%
Energy 3.6%
Cash Equivalents 2.4%
Materials 1.7%
Telecommunication Services 0.9%
(1)PORTFOLIO COMPOSITION IS SUBJECT TO CHANGE
6
CAPITAL APPRECIATION FUND
- --------------------------------------------------------------------------------
PORTFOLIO MANAGER(S):
- - Robert J. Rhodes, CFA
- --------------------------------------------------------------------------------
INVESTMENT CONCERNS
- --------------------------------------------------------------------------------
Equity securities (stocks) are more volatile and carry more risk than other
forms of investments, including investments in high-grade fixed income
securities. The net asset value per share of this Fund will fluctuate as the
value of the securities in the portfolio changes. Common stocks, and funds
investing in common stocks, generally provide greater return potential when
compared with other types of investments.
- --------------------------------------------------------------------------------
MANAGEMENT DISCUSSION & ANALYSIS
- --------------------------------------------------------------------------------
Q: HOW DID THE FUND PERFORM AGAINST ITS BENCHMARK FOR THE PERIOD ENDED MARCH
31, 2005?
A: The Fund follows a disciplined investment process which seeks to identify
primarily larger capitalization companies which have strong or improving
earnings growth and fundamentals. The Fund also emphasizes generally higher
quality stocks which are in industry sectors displaying growth
characteristics. Thus, the Fund's more prominent investment positions tend
to be in the stable or cyclical growth Consumer stocks, in Financial
services, Health care, higher quality Industrials and Information
Technology. The Fund strives to buy stocks which have reasonable valuations
relative to growth potential. Because of these criteria, the Fund will
always look more like a "Growth" portfolio in terms of investment style and
not like a "Value" fund. This means that typically the Fund will perform
better when the market is rewarding strong growth and fundamentals.
For the 10 month period ended March 31, 2005, the S&P 500 Index returned
6.92%. The Fund returned 0.76% (T Shares) for the period. Clearly we were
disappointed in this disparity. At the same time, examination of the wide
disparity in S&P 500 sector returns shows that a good bit of the Fund's
shortfall is related to our focus on growth oriented industry sectors.
10 MONTHS ENDING MARCH 31, 2005
SECTORS OUTPERFORMING INDEX SECTORS UNDERPERFORMING INDEX
- --------------------------- -----------------------------
Energy +43.8% Consumer Discretionary +6.4%
Utilities +28.2% Consumer Staples +3.1%
Materials +20.2% Financials +1.9%
Industrials +14.7% Health care -1.3%
Telecom Services +9.7% Information Technology -2.6%
Q: WHAT FACTORS INFLUENCED THE FUND'S PERFORMANCE FOR THE PERIOD ENDED MARCH
31, 2005?
A: As noted above, the Fund's focus on growth segments meant that we rarely
found attractive stocks in Materials, Utilities or Telecom Services, all of
which are mature slow-growth sectors which had unusually strong price
gains. The Fund did have reasonable representation in Energy, but reduced
that later in the period. The Fund was heavily overweighted and had
excellent stock selection in the Industrial sector. More detrimental to
results, were the Fund's overweight in Information Technology. Also holding
back gains was a modest underweight in Health care and a benchmark weight
in Financials. Finally, the Fund had good stock choices in the Consumer
sectors, but insufficient to the impact of other areas. Overall, when
viewed in the context of sector returns, the Fund's performance was
explainable, albeit not up to our expectations for longer term results
versus the benchmark.
Q: HOW DO YOU PLAN TO POSITION THE FUND, BASED ON MARKET CONDITIONS?
A: The Fund was overweighted in Information Technology and modestly overweight
in Consumer Discretionary and Industrials. The latter two sectors were
reduced in recognition of the typical impact of Fed tightening on sector
earnings. The Financial sector weight was neutral but with an inclination
toward companies that benefited from higher interest rates. Health care,
the weight was also neutral and with an emphasis on strong unit growth,
primarily in medical devices companies.(1)
More important than the sector weights was our view on internal style
characteristics of the equity markets. Specifically, larger cap stocks
looked undervalued versus small caps, and growth stocks were increasingly
attractively valued compared to value type stocks. Value stocks were
primarily found in the sectors which have done so well recently. For
example for the last 10 months covered by this review, the Russell 1000(R)
Growth Index lagged its Value Index counterpart by over 14 percentage
points, an unusually wide divergence. We believe the edge of Value over
Growth will dissipate fairly soon, although the exact timing is impossible
to predict. We believe the Fund is well positioned to participate when
solid large cap growth companies return to favor. We intend to adhere to
this philosophy regardless of the headwinds faced during the short term.(1)
7
CAPITAL APPRECIATION FUND
- --------------------------------------------------------------------------------
GROWTH OF $10,000 INVESTMENT (as of March 31, 2005)
CAPITAL APPRECIATION
FUND (T SHARES) S&P 500 INDEX
-------------------- -------------
03/95 10000 10000
10680 10953
11442 11823
12/95 12103 12534
12812 13207
13486 13799
13875 14226
14561 15410
14898 15824
17444 18584
18610 19976
12/97 19094 20550
21583 23414
22388 24192
19890 21791
24452 26427
24911 27743
27008 29695
24467 27845
12/99 26825 31985
28137 32718
28412 31849
28463 31540
27260 29074
24800 25629
26544 27128
22568 23148
12/01 25492 25621
25278 25692
22177 22252
19153 18410
19889 19961
19463 19332
21208 22307
21479 22897
12/03 23573 25683
24077 26118
24212 26567
23282 26070
25075 28476
03/05 24083 27864
This chart assumes an initial hypothetical investment of $10,000 made on
3/31/95. Total return is based on net change in N.A.V. (net asset value)
assuming reinvestment of distributions. Returns shown on this page include
reinvestment of all dividends and other distributions.
The Funds performance is compared to the S&P 500 Index a market value-weighted
index of 500 stocks designed to mimic the overall U.S. equity market's industry
weightings. The index is unmanaged and does not reflect the deduction of fees or
taxes associated with a mutual fund, such as investment management and fund
accounting fees. Investors cannot invest directly in an index, although they can
invest in its underlying securities.
AVERAGE ANNUAL TOTAL RETURNS AS OF 3/31/05 (%)
----------------------------------------------
SINCE
CAPITAL APPRECIATION FUND INCEPTION DATE 10 MONTH** 1 YEAR 3 YEAR 5 YEAR 10 YEAR INCEPTION
- ------------------------- -------------- ---------- ------ ------ ------ ------- ---------
A SHARES WITHOUT SALES CHARGE 06/09/92 0.15 -0.69 -2.29 -3.71 8.47 8.54
WITH SALES CHARGE* -3.60 -4.38 -3.52 -4.45 8.05 8.22
L SHARES WITHOUT CDSC 06/01/95 -0.02 -0.99 -2.68 -4.13 -- 7.75
WITH CDSC* -1.99 -2.94 -2.68 -4.13 -- 7.75
T SHARES WITHOUT LOAD 07/01/92 0.76 0.03 -1.60 -3.06 9.19 8.98
S&P 500 INDEX 6.92 6.69 2.74 -3.16 10.79
PAST PERFORMANCE DOES NOT GUARANTEE FUTURE RESULTS. THE PERFORMANCE DATA QUOTED
REPRESENTS PAST PERFORMANCE AND CURRENT RETURNS MAY BE LOWER OR HIGHER. TOTAL
RETURN FIGURES INCLUDE CHANGE IN SHARE PRICE, REINVESTMENT OF DIVIDENDS AND
CAPITAL GAINS AND DO NOT REFLECT TAXES THAT A SHAREHOLDER WOULD PAY ON FUND
DISTRIBUTIONS OR ON THE REDEMPTION OF FUND SHARES. THE INVESTMENT RETURN AND
PRINCIPAL VALUE WILL FLUCTUATE SO THAT AN INVESTOR'S SHARES, WHEN REDEEMED MAY
BE WORTH MORE OR LESS THAN THE ORIGINAL COST. FOR PERFORMANCE DATA CURRENT TO
THE MOST RECENT MONTH END, VISIT OUR WEBSITE AT WWW.STICLASSICFUNDS.COM.
*CLASS A SHARE PERFORMANCE REFLECTS THE MAXIMUM FRONT-END SALES CHARGE
OF 3.75% AND CLASS L SHARES REFLECT THE MAXIMUM CDSC (CONTINGENT
DEFERRED SALES CHARGE) OF 2.00% IN YEAR ONE ONLY.
**AGGREGATE TOTAL RETURN
[PIE CHART]
SECTOR WEIGHTINGS (as of March 31, 2005)(1)
as a percentage of total investments
Information Technology 24.7%
Financials 20.1%
Consumer Discretionary 17.2%
Industrials 14.8%
Health Care 10.7%
Consumer Staples 6.4%
Energy 3.6%
Cash Equivalents 1.7%
Materials 0.8%
(1)PORTFOLIO COMPOSITION IS SUBJECT TO CHANGE
8
EMERGING GROWTH STOCK FUND
- --------------------------------------------------------------------------------
PORTFOLIO MANAGER(S):
- - Nancy Zevenbergen, CFA
- - Brooke de Boutray, CFA
- - Leslie Tubbs, CFA
- --------------------------------------------------------------------------------
INVESTMENT CONCERNS
- --------------------------------------------------------------------------------
Equity securities (stocks) are more volatile and carry more risk than other
forms of investments, including investments in high-grade fixed income
securities. The net asset value per share of this Fund will fluctuate as the
value of the securities in the portfolio changes.
- --------------------------------------------------------------------------------
MANAGEMENT DISCUSSION & ANALYSIS
- --------------------------------------------------------------------------------
Q: HOW DID THE FUND PERFORM AGAINST ITS BENCHMARK FOR THE PERIOD ENDED MARCH
31, 2005?
A: Volatile energy prices, rising interest rates, inflation fears and election
uncertainties have dictated market direction, both positive and negative,
over the last 10 months. Risk tolerance waned, depressing higher valuation
companies and favoring value style investing, while smaller capitalized
issues (especially mid-sized) outperformed larger counterparts. The Fund
declined 2.29% (T Shares), trailing the positive 8.89% return of the
Russell MidCap(R) Growth Index for the 10 months ended March 31, 2005.
Concentrated positions in Health Care were the prime performance culprits,
as the drug/pharmaceutical and medical/dental equipment industries continue
to experience difficulties. The Fund's Consumer Discretionary holdings also
underperformed as internet issues declined on the perception of slowing
growth in search-related advertising. Fund stock selection in Technology
(computer technology and computer services/software systems) and Finance
(banks and financial services) outperformed, posting positive gains against
negative benchmark sector returns. Underweighted Consumer Staples and
Utilities/Telecom Services (both double-digit gainers) minimally impacted
the Fund's performance.(1)
Q: WHAT FACTORS INFLUENCED THE FUND'S PERFORMANCE FOR THE PERIOD ENDED MARCH
31, 2005?
A: The Health Care sector endured numerous difficulties throughout the past
ten months. Concerns abound: pricing, regulation, reimbursement, patent
expiry and FDA conservatism have created an oppressive investment
landscape. After several quarters as a top performer, eResearch Technology,
Inc. declined on concerns that a lower-than-expected level of new contract
announcements would not support growth expectations. Short positions
exacerbated the stock price decline and the position was sold. Stock
selection in medical and dental instruments and supplies and
higher-multiple biotechnology also detracted.(1)
The perception of slowing growth in search-related advertising weighed on
the internet group for Fund Consumer Discretionary issues. Online
competition paired with aggressive price cutting measures continued to
pressure shares of Netflix, Inc. With pricing power lost, the position was
sold. Select retail issues outperformed (Urban Outfitters, Inc. and Dick's
Sporting Goods, Inc.), but not sufficiently to fully offset the sector's
decline.(1)
Despite mixed industry performance, overall stock selection was positive
for Fund Technology holdings. Computer technology and computer
services/software paced the sector's positive return. Apple Computer, Inc.
and Cognizant Technology Solutions Corp. were top performers for the Fund
over the last ten months. Mac, iPod and Shuffle momentum continues to
propel Apple's stock price, and demand for Cognizant's offshore IT services
(infrastructure management and applications testing) continues unabated. A
disappointing earnings preannouncement for UTStarcom, Inc. sent the stock
sharply lower. Management attributed the shortfall to a slowing Chinese
economy, the maturation of the PAS market, and lower than expected capex
from key Chinese service providers. PAS visibility continued to deteriorate
and the position was sold.(1)
PAS visibility continued to deteriorate and the position was sold. Fund
Finance stock selection was the largest positive contributor to
performance, gaining more than twice the benchmark sector return. With the
exception of one, all Fund holdings posted double-digit positive gains for
the last ten months. Broad outperformance in banks, processing, investment
management and financial services helped achieve the positive return,
highlighting Investors Financial Services Corp., and Portfolio Recovery
Associates, Inc. as top performers.(1)
Q: HOW DO YOU PLAN TO POSITION THE FUND, BASED ON MARKET CONDITIONS?
A: We firmly believe that adhering to our investment process and philosophy
through all market environments is critical for achieving superior
long-term returns. Though our aggressive growth equity style may be out of
favor during specific market cycles, we remain steadfast in our commitment
to provide a Fund with companies exhibiting faster, sustainable growth
characteristics leading in the development and delivery of innovative
products and services. Though our active investment style and concentrated
Fund holdings can lead to more volatile performance over short time
periods, focusing on select companies positioned in industries exhibiting
leadership and secular growth profiles, we believe, could lead to stocks
appreciating ahead of the benchmark over the long-term.
9
EMERGING GROWTH STOCK FUND
- --------------------------------------------------------------------------------
GROWTH OF $10,000 INVESTMENT (as of March 31, 2005)
EMERGING GROWTH RUSSELL
STOCK FUND MIDCAP(R)
(T SHARES) GROWTH INDEX
--------------- ------------
2/23/04 10000 10000
03/04 9850 9981
9250 9699
9600 9928
06/04 9820 10086
8640 9418
8430 9302
09/04 8710 9649
8810 9977
9340 10492
12/04 9870 10994
9470 10700
9500 10971
03/05 9380 10811
This chart assumes an initial hypothetical investment of $10,000 made on
2/23/04. Total return is based on net change in N.A.V. (net asset value)
assuming reinvestment of distributions. Returns shown on this page include
reinvestment of all dividends and other distributions.
The Funds performance is compared to the Russell MidCap(R) Growth Index which
measures the performance of those companies in the Russell universe with higher
price-to-book ratios and higher forecasted growth values. The stocks are also
members of the Russell 1000(R) Growth index. The index is unmanaged and does not
reflect the deduction of fees or taxes associated with a mutual fund, such as
investment management and fund accounting fees. Investors cannot invest directly
in an index, although they can invest in its underlying securities.
AVERAGE ANNUAL TOTAL RETURNS AS OF 3/31/05 (%)
----------------------------------------------
SINCE
EMERGING GROWTH STOCK FUND INCEPTION DATE 10 MONTH** 1 YEAR INCEPTION
- -------------------------- -------------- ---------- ------ ---------
A SHARES WITHOUT SALES CHARGE 02/23/04 -2.61 -5.08 -6.01
WITH SALES CHARGE* -6.22 -8.61 -9.22
L SHARES WITHOUT SALES CHARGE 02/27/04 -3.03 -5.59 -7.72
WITH CDSC* -4.97 -7.48 -7.72
T SHARES 02/23/04 -2.29 -4.77 -5.65
RUSSELL MIDCAP(R) GROWTH INDEX 8.89 8.31 --
PAST PERFORMANCE DOES NOT GUARANTEE FUTURE RESULTS. THE PERFORMANCE DATA QUOTED
REPRESENTS PAST PERFORMANCE AND CURRENT RETURNS MAY BE LOWER OR HIGHER. TOTAL
RETURN FIGURES INCLUDE CHANGE IN SHARE PRICE, REINVESTMENT OF DIVIDENDS AND
CAPITAL GAINS AND DO NOT REFLECT TAXES THAT A SHAREHOLDER WOULD PAY ON FUND
DISTRIBUTIONS OR ON THE REDEMPTION OF FUND SHARES. THE INVESTMENT RETURN AND
PRINCIPAL VALUE WILL FLUCTUATE SO THAT AN INVESTOR'S SHARES, WHEN REDEEMED MAY
BE WORTH MORE OR LESS THAN THE ORIGINAL COST. FOR PERFORMANCE DATA CURRENT TO
THE MOST RECENT MONTH END, VISIT OUR WEBSITE AT WWW.STICLASSICFUNDS.COM.
*CLASS A SHARE PERFORMANCE REFLECTS THE MAXIMUM FRONT-END SALES CHARGE OF 3.75%
AND CLASS L SHARES REFLECT THE MAXIMUM CDSC (CONTINGENT DEFERRED SALES CHARGE)
OF 2.00% IN YEAR ONE ONLY.
**AGGREGATE TOTAL RETURN
[PIE CHART]
SECTOR WEIGHTINGS (as of March 31, 2005)(1)
as a percentage of total investments
Information Technology 34.5%
Health Care 18.7%
Consumer Discretionary 12.7%
Financials 11.6%
Industrials 9.2%
Consumer Staples 4.9%
Telecommunication Services 4.6%
Cash Equivalents 3.8%
(1) PORTFOLIO COMPOSITION IS SUBJECT TO CHANGE
10
GROWTH AND INCOME FUND
- --------------------------------------------------------------------------------
PORTFOLIO MANAGER(S):
- - Jeffrey E. Markunas, CFA
- --------------------------------------------------------------------------------
INVESTMENT CONCERNS
- --------------------------------------------------------------------------------
Equity securities (stocks) are more volatile and carry more risk than other
forms of investments, including investments in high-grade fixed income
securities. The net asset value per share of this Fund will fluctuate as the
value of the securities in the portfolio changes.
Bonds offer a relatively stable level of income, although bond prices will
fluctuate providing the potential for principal gain or loss. Intermediate-term,
higher-quality bonds generally offer less risk than longer-term bonds and a
lower rate of return.
- --------------------------------------------------------------------------------
MANAGEMENT DISCUSSION & ANALYSIS
- --------------------------------------------------------------------------------
Q: HOW DID THE FUND PERFORM AGAINST ITS BENCHMARK FOR THE PERIOD ENDED MARCH
31, 2005?
A: In the 10 month period ended March 31, 2005, the Fund outperformed its
benchmark, with the T Shares gaining 12.98% versus 10.73% for the S&P
500/BARRA Value Index. The Fund also performed well compared to the S&P
500, which returned 6.92% for the period.
Q: WHAT FACTORS INFLUENCED THE FUND'S PERFORMANCE FOR THE PERIOD ENDED MARCH
31, 2005?
A: The markets have moved unevenly over the past 10 months, as investors have
grappled with economic sustainability, geopolitical uncertainties around
the globe, rising energy prices and interest rates, falling value of the
dollar, and high profile event risks including the Olympics, the
Presidential National Conventions and the Presidential election and
inauguration. Despite lingering skepticism about economic durability and
ability of corporate America to exceed consensus profit expectations,
investors capitulated to the overwhelming body of positive evidence,
igniting a powerful fourth quarter 2004 rally, wherein most of last year's
gains were achieved.
It was not a surprise that, economically-sensitive groups led the way, with
energy stocks setting the pace and utilities, industrials and materials
also performing strongly. Conversely, technology, telecommunications,
autos, health care, and other less cyclical areas of the market experienced
profit pressures and a more hostile environment. In the latter months of
the Fund year, financial stocks also suffered from a combination of rising
interest rates, shift in the yield curve, and highly publicized, company
specific controversies. Fund outperformance can be attributed to 1)
maintaining a consistently positive view on the market and remaining fully
invested, 2) generally good sector composition, overweighting industrials
and basics throughout the period and energy for a good portion of their
rally, while underweighting financials, telecommunications, and consumer
discretionaries, 3) maintaining broad diversification with overall positive
impact from issue selection, and 4) adherence to valuation parameters and
willingness to migrate the portfolio away from both winning positions that
had achieved price objectives, and losing positions where the investment
thesis underpinnings had buckled, in favor of emerging opportunities with
superior risk/reward potential. In the latest Fund year, many but not all
of the best performing contributors came from the top performing sectors:
in energy, Kerr McGee and Exxon Mobil, in utilities Exelon, and in
industrials Rockwell Automation and Norfolk Southern. However, good
performance also came from less obvious sectors like Wellpoint in health
care, Archer Daniels in consumer staples, and Prudential in financials. Of
course, no matter how favorable the Fund performance, there are always
issues that miss the mark, which in the latest Fund year included Pfizer,
AIG, Colgate, Fifth Third Bancorp, and Agilent. Among those underperforming
names, Colgate was sold, but the other four remain in the Fund, as our
longer term conviction in the valuation and its validation by the market
remain intact.(1)
Q: HOW DO YOU PLAN TO POSITION THE FUND, BASED ON MARKET CONDITIONS?
A: Over the past 6 months, the Fund's positioning has been undergoing gradual
transitioning, reducing exposure to the economically-sensitive areas of the
market. The Fund is increasing exposure to issues where investors appear to
have over-discounted the value of steadier future earnings growth. We
believe the market has been in a multi-year, earnings-driven recovery
dominated by value and economically cyclical themes, nurtured by
accommodative Fed policy, a weak dollar, resurgent corporate and resilient
consumer cash flows, the absence of significant geopolitical shocks, and
boosted by the Presidential election year cycle. Several of these factors
are moderating or shifting and impact the Fund in the quarters ahead.
Global economic and corporate profit growth are poised for deceleration,
Fed policy is geared toward "neutrality", i.e.: higher rates, and inflation
beyond the energy complex is stirring. Across the stock markets, enormous
valuation compression has occurred, to the degree that investors are
showing historically low risk discrimination between cyclical and
sustainable growth companies, larger and smaller companies, and higher and
lower quality companies. This compression has been difficult for larger
cap, quality-conscious growth-oriented investors while providing
opportunity and a blissful period of redemption for value-oriented managers
who endured both the market rise and the decline environments. We believe
the valuation compression drives our tactical strategy to transition the
Fund toward greater exposure in undervalued names with sustainable earnings
growth. Increasingly, better relative values are being created in these
areas, and our strategy is to gravitate towards value wherever created. We
also are aware that this compression of risk and valuation across the
market ultimately will reverse course, and greater discrimination by
investors is likely to return.
11
GROWTH AND INCOME FUND
- --------------------------------------------------------------------------------
GROWTH OF $10,000 INVESTMENT (as of March 31, 2005)
GROWTH AND INCOME S&P 500/BARRA S&P 500
FUND (T SHARES) VALUE INDEX INDEX
--------------- ----------- -----
03/95 10000 10000 10000
10601 10871 10953
11377 11736 11823
12/95 11925 12495 12534
12510 13294 13207
13031 13566 13799
13261 13925 14226
14197 15244 15410
14194 15512 15824
16662 17757 18584
18169 19385 19976
12/97 18129 19814 20550
20421 22104 23414
20535 22218 24192
18407 19349 21791
21428 22722 26427
21994 23369 27743
24162 25893 29695
22430 23504 27845
12/99 24465 25613 31985
24714 25673 32718
24379 24570 31849
25608 26736 31540
24815 27171 29074
22918 25398 25629
24040 26517 27128
21434 22220 23148
12/01 23176 23989 25621
23615 24307 25692
21168 21720 22252
17263 17276 18410
18624 18987 19961
17764 17941 19332
20479 21321 22307
20850 21863 22897
12/03 23864 25023 25683
24588 25860 26118
25010 26066 26567
24813 26337 26070
27260 28953 28476
03/05 27704 28249 27864
This chart assumes an initial hypothetical investment of $10,000 made on
3/31/95. Total return is based on net change in N.A.V. (net asset value)
assuming reinvestment of distributions. Returns shown on this page include
reinvestment of all dividends and other distributions.
The Funds performance is compared to the S&P 500/BARRA Value Index and the S&P
500 Index. The S&P 500/BARRA Value Index is comprised of securities in the S&P
500 Index that have lower price-to-book ratios. The S&P 500 is a market
value-weighted index of 500 stocks designed to mimic the overall U.S. equity
market's industry weightings. The index is unmanaged and does not reflect the
deduction of fees or taxes associated with a mutual fund, such as investment
management and fund accounting fees. Investors cannot invest directly in an
index, although they can invest in its underlying securities.
AVERAGE ANNUAL TOTAL RETURNS AS OF 3/31/05 (%)
----------------------------------------------
SINCE
GROWTH AND INCOME FUND INCEPTION DATE 10 MONTH** 1 YEAR 3 YEAR 5 YEAR 10 YEAR INCEPTION
- ---------------------- -------------- ---------- ------ ------ ------ ------- ---------
A SHARES WITHOUT SALES CHARGE 05/07/93 12.86 12.48 5.24 2.13 10.60 9.95
WITH SALES CHARGE* 8.61 8.26 3.91 1.35 10.18 9.60
L SHARES WITHOUT CDSC 04/05/95 12.12 11.58 4.46 1.35 -- 9.72
WITH CDSC* 10.12 9.58 4.46 1.35 -- 9.72
T SHARES 09/26/92 12.98 12.67 5.47 2.31 10.73 10.55
S&P 500/BARRA VALUE INDEX 10.73 9.24 5.14 1.93 10.94 --
S&P 500 INDEX 6.92 6.69 2.74 -3.16 10.79 --
PAST PERFORMANCE DOES NOT GUARANTEE FUTURE RESULTS. THE PERFORMANCE DATA QUOTED
REPRESENTS PAST PERFORMANCE AND CURRENT RETURNS MAY BE LOWER OR HIGHER. TOTAL
RETURN FIGURES INCLUDE CHANGE IN SHARE PRICE, REINVESTMENT OF DIVIDENDS AND
CAPITAL GAINS AND DO NOT REFLECT TAXES THAT A SHAREHOLDER WOULD PAY ON FUND
DISTRIBUTIONS OR ON THE REDEMPTION OF FUND SHARES. THE INVESTMENT RETURN AND
PRINCIPAL VALUE WILL FLUCTUATE SO THAT AN INVESTOR'S SHARES, WHEN REDEEMED MAY
BE WORTH MORE OR LESS THAN THE ORIGINAL COST. FOR PERFORMANCE DATA CURRENT TO
THE MOST RECENT MONTH END, VISIT OUR WEBSITE AT WWW.STICLASSICFUNDS.COM.
*CLASS A SHARE PERFORMANCE REFLECTS THE MAXIMUM FRONT-END SALES CHARGE OF 3.75%
AND CLASS L SHARES REFLECT THE MAXIMUM CDSC (CONTINGENT DEFERRED SALES CHARGE)
OF 2.00% IN YEAR ONE ONLY.
**AGGREGATE TOTAL RETURN
[PIE CHART]
SECTOR WEIGHTINGS (as of March 31, 2005)(1)
as a percentage of total investments
Financials 23.4%
Consumer Staples 11.3%
Health Care 11.2%
Energy 10.9%
Industrials 10.9%
Information Technology 10.1%
Consumer Discretionary 8.8%
Utilities 5.0%
Materials 3.6%
Telecommunication Services 2.7%
Cash Equivalents 2.1%
(1) PORTFOLIO COMPOSITION IS SUBJECT TO CHANGE
12
INTERNATIONAL EQUITY FUND
- --------------------------------------------------------------------------------
PORTFOLIO MANAGER(S):
- - Chad Deakins, CFA
- --------------------------------------------------------------------------------
INVESTMENT CONCERNS
- --------------------------------------------------------------------------------
International investing involves increased risk and volatility.
Equity securities (stocks) are more volatile and carry more risk than other
forms of investments, including investments in high-grade fixed income
securities. The net asset value per share of this Fund will fluctuate as the
value of the securities in the portfolio changes.
- --------------------------------------------------------------------------------
MANAGEMENT DISCUSSION & ANALYSIS
- --------------------------------------------------------------------------------
Q: HOW DID THE FUND PERFORM AGAINST ITS BENCHMARK FOR THE PERIOD ENDED MARCH
31, 2005?
A: The Fund returned 17.09% (T Shares) for the 10 month period ended March 31,
2005. The MSCI EAFE Index returned 17.47% during the same time frame. The
Fund underperformed its benchmark by 36 basis points (0.36%). During the
period the groups of stocks that contributed the most to the index
performance were European Financials +27%, European Energy stocks +28.6%,
Australian Materials +53% and Australian Industries +53%. Information
Technology stocks performed poorly in all regions. Higher dividend yielding
stock outperformed lower dividend yielding stocks dramatically. Smaller
market cap stocks outperformed larger stocks by 10% or more.
Q: WHAT FACTORS INFLUENCED THE FUND'S PERFORMANCE FOR THE PERIOD ENDED MARCH
31, 2005?
A: Stock selection in the Fund was generally sound. In the UK, stocks
selection was particularly strong. We held GlaxoSmithKline which was up 12%
versus AstraZeneca a large index component that was down 12%. In New
Zealand we owned Fletcher Building a building products company that was up
82%. In Asia we held Neptune Orient Lines +84% and Esprit Holdings a
clothing retailer +61%. In Europe the Fund was helped by Fortum an Energy
company +65%, in Japan stocks selection was just okay with some good stocks
like Mitsui OSK a shipping company +39% and Japan Tobacco up 39% as well,
offset by some poor performers like Kyocera -13% and Hitachi -7.9%.(1)
The key factor that led to underperformance was the rally in smaller cap
stocks and the larger cap bias of the Fund. Small cap stocks have
outperformed Large cap stocks for each of the last few years and are now
trading at a valuation premium to the overall market. We believe this Small
Cap outperformance will revert and boost performance for next year.
Q: HOW DO YOU PLAN TO POSITION THE FUND, BASED ON MARKET CONDITIONS?
A: The bull market is maturing at 3+ years. It is too early to get defensive,
but the highest trajectory growth is behind us. From here, valuation should
be important as a hedge on declining markets. Profitability should be
rewarded as investors want actual growth as projected growth may not
materialize. Commodities are not in danger of falling anytime soon as
economic growth is still positive. We are unsure about Japan in its current
state. The Japanese market is cheaper than it has ever been, and the
economy looks to be growing.
But demographics could negatively impact Japan in the long term with one of
the worst birthrates in the world. We believe continental Europe, on the
other hand, has opportunity to grow. Recently, France moved back to a 39
hour/work week versus a 34 hour/work week for full time employment. The
remainder of Europe is becoming more capitalist and less socialist in a
number of ways. Employment reform and tax reform are two changes that
should benefit businesses and therefore the European stock markets. Most
International markets look attractive versus the U.S. in terms of relative
valuation comparisons.
13
INTERNATIONAL EQUITY FUND
- --------------------------------------------------------------------------------
GROWTH OF $10,000 INVESTMENT (as of March 31, 2005)
INTERNATIONAL
EQUITY FUND MSCI
(T SHARES) EAFE INDEX
------------- ----------
03/95 10000 10000
11175 10073
12463 10493
12/95 12988 10917
13600 11233
14350 11411
14525 11396
15855 11578
16500 11396
18510 12875
19490 12785
12/97 17971 11783
20697 13517
20926 13660
17100 11719
19987 14140
20018 14336
20568 14701
20643 15346
12/99 21881 17952
21584 17934
22736 17223
20890 15834
21124 15409
18649 13297
18860 13158
16731 11316
12/01 17383 12105
17575 12222
17133 11909
13757 9559
14425 10175
13303 9340
15797 11139
16784 12045
12/03 19742 14102
20526 14713
20369 14745
20526 14704
23497 16957
03/05 23299 16929
This chart assumes an initial hypothetical investment of $10,000 made on
3/31/95. Total return is based on net change in N.A.V. (net asset value)
assuming reinvestment of distributions. Returns shown on this page include
reinvestment of all dividends and other distributions.
The Funds performance is compared to the Morgan Stanley Capital International,
Europe, Australasia and Far East (MSCI EAFE) Index is a widely-recognized,
market capitalization index that measures market equity performance based upon
indices from 21 foreign and developed markets. The index is unmanaged and does
not reflect the deduction of fees or taxes associated with a mutual fund, such
as investment management and fund accounting fees. Investors cannot invest
directly in an index, although they can invest in its underlying securities.
AVERAGE ANNUAL TOTAL RETURNS AS OF 3/31/05 (%)
----------------------------------------------
INTERNATIONAL EQUITY FUND INCEPTION DATE+ 10 MONTH** 1 YEAR 3 YEAR 5 YEAR 10 YEAR
- ------------------------- --------------- ---------- ------ ------ ------ -------
A SHARES WITHOUT SALES CHARGE 01/02/96 16.78 13.17 9.41 1.15 8.44
WITH SALES CHARGE* 12.41 8.96 8.04 0.38 8.03
L SHARES WITHOUT CDSC 01/02/96 16.03 12.36 8.69 0.48 7.77
WITH CDSC* 14.03 10.36 8.69 0.48 7.77
T SHARES 01/31/95 17.09 13.51 9.85 1.54 8.83
MSCI EAFE INDEX 17.47 15.06 11.47 -1.15 5.41
PAST PERFORMANCE DOES NOT GUARANTEE FUTURE RESULTS. THE PERFORMANCE DATA QUOTED
REPRESENTS PAST PERFORMANCE AND CURRENT RETURNS MAY BE LOWER OR HIGHER. TOTAL
RETURN FIGURES INCLUDE CHANGE IN SHARE PRICE, REINVESTMENT OF DIVIDENDS AND
CAPITAL GAINS AND DO NOT REFLECT TAXES THAT A SHAREHOLDER WOULD PAY ON FUND
DISTRIBUTIONS OR ON THE REDEMPTION OF FUND SHARES. THE INVESTMENT RETURN AND
PRINCIPAL VALUE WILL FLUCTUATE SO THAT AN INVESTOR'S SHARES, WHEN REDEEMED MAY
BE WORTH MORE OR LESS THAN THE ORIGINAL COST. FOR PERFORMANCE DATA CURRENT TO
THE MOST RECENT MONTH END, VISIT OUR WEBSITE AT WWW.STICLASSICFUNDS.COM.
*CLASS A SHARE PERFORMANCE REFLECTS THE MAXIMUM FRONT-END SALES CHARGE OF 3.75%
AND CLASS L SHARES REFLECT THE MAXIMUM CDSC (CONTINGENT DEFERRED SALES CHARGE)
OF 2.00% IN YEAR ONE ONLY.
**AGGREGATE TOTAL RETURN.
+The performance quoted represents past performance of the SunTrust Bank's
internally managed common trust fund, adjusted for fees and expenses for periods
prior to December 1, 1995, and past performance of the T shares for the periods
between December 1, 1995 and inception of the A and L shares on January 2, 1996.
The common trust fund was not registered under the 1940 Act and therefore was
not subject to certain investment restrictions which may have adversely affected
performance.
[PIE CHART]
COUNTRY WEIGHTINGS (as of March 31, 2005)(1)
as a percentage of total investments
United Kingdom 23.8%
Japan 20.4%
France 9.5%
Germany 8.1%
Switzerland 6.0%
Australia 4.7%
Netherlands 4.4%
United States 3.8%
Spain 3.5%
Other Countries 3.4%
Italy 3.0%
Sweden 2.9%
Finland 1.8%
Hong Kong 1.8%
Norway 1.5%
Ireland 1.4%
(1) PORTFOLIO COMPOSITION IS SUBJECT TO CHANGE
14
INTERNATIONAL EQUITY INDEX FUND
- --------------------------------------------------------------------------------
PORTFOLIO MANAGER(S):
- - Chad Deakins, CFA
- - Andrew Atkins
- --------------------------------------------------------------------------------
INVESTMENT CONCERNS
- --------------------------------------------------------------------------------
International investing involves increased risk and volatility.
Equity securities (stocks) are more volatile and carry more risk than other
forms of investments, including investments in high-grade fixed income
securities. The net asset value per share of this Fund will fluctuate as the
value of the securities in the portfolio changes.
It is important to remember that there are risks associated with index
investing, including the potential risk of market decline, as well as the risks
associated with investing in specific companies.
- --------------------------------------------------------------------------------
MANAGEMENT DISCUSSION & ANALYSIS
- --------------------------------------------------------------------------------
Q: HOW DID THE FUND PERFORM AGAINST ITS BENCHMARK FOR THE PERIOD ENDED MARCH
31, 2005?
A: The Fund outperformed the MSCI EAFE GDP Weighted Index for the 10 month
period with a 17.68% (T Shares) total return versus 17.55% total return for
the benchmark. International stocks have held up well over the past three
calendar years in comparison to major U.S. total market indices.
Valuations between international regions have continued their convergence
over the last few quarters and are at low levels relative to history. The
Pacific Basin, Far East and Japan in particular are clearly the most
undervalued regions relative to historical norms. These markets lie in
contrast to North American and European markets that appear to be somewhat
overvalued to date. Because of this overvaluation, investors may have
little tolerance for economic weakness that appears strong enough to
threaten profitability. There continues to be a threat to stock markets and
the current expanding economic cycle from the possibility of increasing
interest rates. However, Euro-Zone slowing in key indicators implies that
recent increases in producer prices are more a result of continued
increases in oil costs than of long-term inflationary pressure. If this is
the case, central banks should be less inclined to increase interest rates
rapidly.
The U.S. Fed is on a tightening cycle that will likely continue, however
the recent economic reports in Europe and other regions suggest that
central banks are not in a position to be as aggressive with interest rate
hikes as the U.S. Fed. This should be positive for Europe versus U.S. When
looked at in combination, the recent economic data gives a picture more of
a moderation in the rapid recent growth rather than one of extended slowing
in global markets.
The U.S. dollar continues to be valued at a near and mid-term low versus a
basket of international currencies and is not anticipated to rebound
strongly in the near future. This Euro strength could be difficult for the
European economy to overcome. However Asian markets have a history of doing
well during periods of dollar weakness and, given their relative
undervalued positioning, could hold up well even in a general global market
downturn. Given these events we continue to look for average growth in
Europe, but stronger market returns from Asia and Japan.
Q: WHAT FACTORS INFLUENCED THE FUND'S PERFORMANCE FOR THE PERIOD ENDED MARCH
31, 2005?
A: During the 10 month review period, in general, international investors
sought out stocks, during this 10 month review period, that were trading at
very low valuation multiples. Investors also rewarded high dividend yield
stocks. Small cap stocks were more in favor than were large caps. The MSCI
EAFE GDP index (and therefore the Fund as well) was heavily weighted in
lower valuation stocks and higher dividend yield stocks, but were
positioned more toward the large end of the market cap scale.(1)
Q: HOW DO YOU PLAN TO POSITION THE FUND, BASED ON MARKET CONDITIONS?
A: The Fund will continue to track the MSCI EAFE GDP index by investing in a
sample of about 700 stocks that replicate both the sector and country
weights of the index. This strategy of holding a large sample of the index
has tracked the MSCI EAFE GDP index well over the Fund's history and we
anticipate the same going forward. The strategy also allows the Fund to
keep transaction costs as low as possible while continuing to minimize
tracking errors. We will manage cash closely to reduce any negative effect
of holding cash over the coming year. In addition, we will respond to
corporate actions, so as to mimic share changes in the index. We will
further work to reduce tracking errors.(1)
15
INTERNATIONAL EQUITY INDEX FUND
- --------------------------------------------------------------------------------
GROWTH OF $10,000 INVESTMENT (as of March 31, 2005)
INTERNATIONAL EQUITY MSCI EAFE
INDEX FUND GDP WEIGHTED
(T SHARES) INDEX
-------------------- ------------
03/95 10000 10000
10325 10190
10600 10488
12/95 10938 10804
11145 11080
11477 11304
11373 11233
11599 11460
11652 11498
13032 12742
13377 12824
12/97 12641 11959
14859 13986
15576 14488
13554 12346
16436 14964
16745 15225
17461 15714
18457 16528
12/99 21475 19377
21347 19495
20426 18619
18683 16999
17812 16190
15643 14216
15428 13953
13043 11775
12/01 13631 12424
13746 12543
13544 12289
10763 9708
11379 10275
10453 9417
12552 11238
13667 12256
12/03 15992 14384
16755 15073
16784 14974
16637 14828
19360 17283
03/05 19165 17109
This chart assumes an initial hypothetical investment of $10,000 made on
3/31/95. Total return is based on net change in N.A.V. (net asset value)
assuming reinvestment of distributions. Returns shown on this page include
reinvestment of all dividends and other distributions.
The Funds performance is compared to the Morgan Stanley Capital International,
Europe, Australasia and Far East (MSCI EAFE) GDP Weighted Index is a
widely-recognized, market capitalization index that measures market equity
performance based upon indices 21 foreign and developed countries. The country
weighting of the Index is calculated using the gross domestic product of each of
the various countries and then with respect of the market capitalization of the
various companies operating in each country. The index is unmanaged and does not
reflect the deduction of fees or taxes associated with a mutual fund, such as
investment management and fund accounting fees. Investors cannot invest directly
in an index, although they can invest in its underlying securities.
AVERAGE ANNUAL TOTAL RETURNS AS OF 3/31/05 (%)
----------------------------------------------
SINCE
INTERNATIONAL EQUITY INDEX FUND INCEPTION DATE 10 MONTH** 1 YEAR 3 YEAR 5 YEAR 10 YEAR INCEPTION
- ------------------------------- -------------- ---------- ------ ------ ------ ------- ---------
A SHARES WITHOUT SALES CHARGE 06/06/94 17.22 13.89 11.14 -2.59 6.25 5.59
WITH SALES CHARGE* 12.78 9.60 9.72 -3.33 5.85 5.22
L SHARES WITHOUT CDSC 06/08/95 16.62 13.23 10.51 -3.19 -- 5.28
WITH CDSC* 14.62 11.23 10.51 -3.19 -- 5.28
T SHARES 06/06/94 17.68 14.39 11.72 -2.13 6.72 6.07
MSCI EAFE GDP WEIGHTED INDEX 17.55 13.51 10.90 -2.58 5.52 --
PAST PERFORMANCE DOES NOT GUARANTEE FUTURE RESULTS. THE PERFORMANCE DATA QUOTED
REPRESENTS PAST PERFORMANCE AND CURRENT RETURNS MAY BE LOWER OR HIGHER. TOTAL
RETURN FIGURES INCLUDE CHANGE IN SHARE PRICE, REINVESTMENT OF DIVIDENDS AND
CAPITAL GAINS AND DO NOT REFLECT TAXES THAT A SHAREHOLDER WOULD PAY ON FUND
DISTRIBUTIONS OR ON THE REDEMPTION OF FUND SHARES. THE INVESTMENT RETURN AND
PRINCIPAL VALUE WILL FLUCTUATE SO THAT AN INVESTOR'S SHARES, WHEN REDEEMED MAY
BE WORTH MORE OR LESS THAN THE ORIGINAL COST. FOR PERFORMANCE DATA CURRENT TO
THE MOST RECENT MONTH END, VISIT OUR WEBSITE AT WWW.STICLASSICFUNDS.COM.
*CLASS A SHARE PERFORMANCE REFLECTS THE MAXIMUM FRONT-END SALES CHARGE OF 3.75%
AND CLASS L SHARES REFLECT THE MAXIMUM CDSC (CONTINGENT DEFERRED SALES CHARGE)
OF 2.00% IN YEAR ONE ONLY.
**AGGREGATE TOTAL RETURN.
[PIE CHART]
COUNTRY WEIGHTINGS (as of March 31, 2005)(1)
as a percentage of total investments
Japan 22.4%
Germany 13.8%
United Kingdom 9.9%
France 9.7%
Italy 9.0%
United States 7.3%
Other Countries 6.0%
Spain 5.4%
Australia 3.1%
Netherlands 3.1%
Belgium 2.1%
Austria 1.9%
Sweden 1.7%
Switzerland 1.7%
Norway 1.6%
Denmark 1.3%
(1) PORTFOLIO COMPOSITION IS SUBJECT TO CHANGE
16
LIFE VISION AGGRESSIVE GROWTH FUND
- --------------------------------------------------------------------------------
PORTFOLIO MANAGER(S):
- - Gregory A. Fraser, CFA
- - Alan Gayle
- --------------------------------------------------------------------------------
INVESTMENT CONCERNS
- --------------------------------------------------------------------------------
Stocks are more volatile and carry more risk and return potential than other
forms of investments. Bonds offer a relatively stable level of income, although
bond prices will fluctuate, providing the potential for principal gain or loss.
Cash equivalents offer low risk and low return potential.
- --------------------------------------------------------------------------------
MANAGEMENT DISCUSSION & ANALYSIS
- --------------------------------------------------------------------------------
Q: HOW DID THE FUND PERFORM AGAINST ITS BENCHMARK FOR THE PERIOD ENDED MARCH
31, 2005?
A: The Life Vision Aggressive Growth Fund outperformed its benchmark of 90%
S&P 500 and 10% 90-day T-bills from May 31, 2004 through March 31, 2005.
Outperformance can be attributed to both style allocation and individual
manager performance.
Q: WHAT FACTORS INFLUENCED THE FUND'S PERFORMANCE FOR THE PERIOD ENDED MARCH
31, 2005?
A: Performance was enhanced by exposure to the international sector and as
strong performance by the large-cap value-oriented funds.
Q: HOW DO YOU PLAN TO POSITION THE FUND, BASED ON MARKET CONDITIONS?
A: We expect to retain a high equity weight relative to the benchmark, and
overweight positions in international, large-cap, and growth-oriented
funds.
[PIE CHART]
FUND ALLOCATION (as of March 31, 2005)(1)
as a percentage of total investments
Capital Appreciation Fund 23.9%
Growth and Income Fund 19.8%
International Equity Index Fund 15.9%
Value Income Stock Fund 13.3%
Aggressive Growth Stock Fund 6.0%
Mid-Cap Equity Fund 4.0%
Mid-Cap Value Equity Fund 4.0%
Strategic Quantitative Equity Fund 4.0%
Prime Quality Money Market Fund 3.1%
Small-Cap Value Equity Fund 3.0%
Small-Cap Growth Stock Fund 2.0%
Emerging Growth Stock Fund 1.0%
(1) PORTFOLIO COMPOSITION IS SUBJECT TO CHANGE
17
LIFE VISION AGGRESSIVE GROWTH FUND
- --------------------------------------------------------------------------------
GROWTH OF $10,000 INVESTMENT (as of March 31, 2005)
LIFE VISION CITIGROUP
AGGRESSIVE 3 MONTH
GROWTH FUND S&P 500 TREASURY 90/10
(T SHARES) INDEX INDEX HYBRID INDEX
---------- ------- --------- ------------
03/95 10000 10000 10000 10000
10671 10953 10146 10867
11373 11823 10289 11659
12/95 11732 12534 10429 12300
12278 13207 10564 12917
12824 13799 10697 13458
12980 14226 10837 13849
13682 15410 10977 14911
13385 15824 11116 15285
15601 18584 11260 17700
17007 19976 11405 18928
12/97 16765 20550 11553 19445
18814 23414 11702 21905
18709 24192 11851 22585
15860 21791 12000 20606
18829 26427 12138 24557
19057 27743 12271 25688
20627 29695 12410 27349
19002 27845 12557 25840
12/99 20771 31985 12713 29320
21570 32718 12883 29980
21682 31849 13068 29307
22185 31540 13262 29103
22080 29074 13470 27097
20388 25629 13658 24239
21500 27128 13805 25546
18655 23148 13930 22178
12/01 20640 25621 14021 24322
20944 25692 14082 24395
19173 22252 14144 21451
15963 18410 14205 18110
16903 19961 14260 19498
16085 19332 14303 18951
18347 22307 14343 21574
19035 22897 14379 22093
12/03 21414 25683 14413 24512
22118 26118 14446 24893
22346 26567 14481 25283
21894 26070 14528 24866
24200 28476 14592 26938
03/05 23862 27864 14674 26432
This chart assumes an initial hypothetical investment of $10,000 made on
3/31/95. Total return is based on net change in N.A.V. (net asset value)
assuming reinvestment of distributions. Returns shown on this page include
reinvestment of all dividends and other distributions.
The Funds performance is compared to the S&P 500 Index, the Citigroup 3 Month
Treasury Bill Index and a Hybrid blend of 90/10 (90% of the S&P 500 Index and
10% of the Citigroup 3 Month Treasury Bill Index.) The S&P 500 Index is a market
value-weighted index of 500 stocks designed to mimic the overall U.S. equity
market's industry weightings. The Citigroup 3 Month Treasury Bill Index tracks
the performance of 3 month U.S. Treasury Bills. The indices are unmanaged and do
not reflect the deduction of fees or taxes associated with a mutual fund, such
as investment management and fund accounting fees. Investors cannot invest
directly in an index, although they can invest in its underlying securities.
AVERAGE ANNUAL TOTAL RETURNS AS OF 3/31/05 (%)
----------------------------------------------
LIFE VISION SINCE
AGGRESSIVE GROWTH FUND INCEPTION DATE+ 10 MONTH** 1 YEAR 3 YEAR 5 YEAR 10 YEAR INCEPTION
- ---------------------- --------------- ---------- ------ ------ ------ ------- ---------
A SHARES* WITHOUT SALES CHARGE 10/16/03 8.90 7.63 4.29 1.95 9.04 8.51
WITH SALES CHARGE* 4.80 3.63 2.96 1.18 8.62 8.17
B SHARES WITHOUT CDSC 03/11/03 8.44 7.07 3.89 1.71 8.91 8.41
WITH CDSC* 3.44 2.07 2.64 1.36 8.91 8.41
T SHARES 12/31/92 9.15 7.89 4.44 2.04 9.09 8.55
S&P 500 INDEX 6.92 6.69 2.74 -3.16 10.79 --
CITIGROUP 3 MONTH TREASURY BILL INDEX 1.42 1.45 1.34 2.61 3.90 --
HYBRID INDEX (90/10) 6.38 6.17 2.71 -2.49 10.21 --
PAST PERFORMANCE DOES NOT GUARANTEE FUTURE RESULTS. THE PERFORMANCE DATA QUOTED
REPRESENTS PAST PERFORMANCE AND CURRENT RETURNS MAY BE LOWER OR HIGHER. TOTAL
RETURN FIGURES INCLUDE CHANGE IN SHARE PRICE, REINVESTMENT OF DIVIDENDS AND
CAPITAL GAINS AND DO NOT REFLECT TAXES THAT A SHAREHOLDER WOULD PAY ON FUND
DISTRIBUTIONS OR ON THE REDEMPTION OF FUND SHARES. THE INVESTMENT RETURN AND
PRINCIPAL VALUE WILL FLUCTUATE SO THAT AN INVESTOR'S SHARES, WHEN REDEEMED MAY
BE WORTH MORE OR LESS THAN THE ORIGINAL COST. FOR PERFORMANCE DATA CURRENT TO
THE MOST RECENT MONTH END, VISIT OUR WEBSITE AT WWW.STICLASSICFUNDS.COM.
*CLASS A SHARE PERFORMANCE REFLECTS THE MAXIMUM FRONT-END SALES CHARGE OF 3.75%
AND CLASS B SHARES REFLECT THE MAXIMUM CDSC (CONTINGENT DEFERRED SALES CHARGE)
OF 2.00% IN YEAR ONE ONLY.
**AGGREGATE TOTAL RETURN.
+The performance quoted represents past performance of Crestar Bank's asset
allocation program, adjusted for fees and expenses for periods prior to June 30,
1997, and past performance of the T Shares for the period after the Fund's
inception on June 30, 1997 and the inception of the A Shares on October 16,
2003, and the inception of the B Shares on March 11, 2003. The asset allocation
program was not registered under the 1940 Act and therefore was not subject to
certain investment restrictions which may have adversely affected performance.
As of May 24, 1999, the CrestarFunds Life Vision Portfolio became the STI
Classic Life Vision Fund.
18
LIFE VISION CONSERVATIVE FUND
- --------------------------------------------------------------------------------
PORTFOLIO MANAGER(S):
- - Gregory A. Fraser, CFA
- - Alan Gayle
- --------------------------------------------------------------------------------
INVESTMENT CONCERNS
- --------------------------------------------------------------------------------
Stocks are more volatile and carry more risk and return potential than other
forms of investments. Bonds offer a relatively stable level of income, although
bond prices will fluctuate, providing the potential for principal gain or loss.
Cash equivalents offer low risk and low return potential.
- --------------------------------------------------------------------------------
MANAGEMENT DISCUSSION & ANALYSIS
- --------------------------------------------------------------------------------
Q: HOW DID THE FUND PERFORM AGAINST ITS BENCHMARK FOR THE PERIOD ENDED MARCH
31, 2005?
A: The Life Vision Conservative Fund outperformed its benchmark of 20% S&P
500, 70% Lehman Brothers U.S. Aggregate Bond Index and 10% 90-day T-bills
from May 31, 2004 through March 31, 2005. Outperformance can be attributed
to and overweight in equities, style allocation and individual manager
performance.
Q: WHAT FACTORS INFLUENCED THE FUND'S PERFORMANCE FOR THE PERIOD ENDED MARCH
31, 2005?
A: The key to the Fund's outperformance was an overweight in equities.
Performance was also enhanced by exposure to the international sector and
strong performance by the large-cap value-oriented funds, in addition to
the high yield fund.
Q: HOW DO YOU PLAN TO POSITION THE FUND, BASED ON MARKET CONDITIONS?
A: We expect to retain a high equity weight, relative to the benchmark, and
overweight positions in international, large-cap, and growth-oriented
funds.
[PIE CHART]
FUND ALLOCATION (as of March 31, 2005)(1) as a
percentage of total investments
Institutional Core Bond Fund 66.8%
Capital Appreciation Fund 6.3%
High Income Fund 4.9%
Growth and Income Fund 4.8%
International Equity Index Fund 3.9%
Prime Quality Money Market Fund 3.5%
Value Income Stock Fund 3.2%
Aggressive Growth Stock Fund 1.6%
Strategic Quantitative Equity Fund 1.0%
Small-Cap Value Equity Fund 1.0%
Small-Cap Growth Stock Fund 1.0%
Mid-Cap Value Equity Fund 1.0%
Mid-Cap Equity Fund 1.0%
(1) PORTFOLIO COMPOSITION IS SUBJECT TO CHANGE
19
LIFE VISION CONSERVATIVE FUND
- --------------------------------------------------------------------------------
GROWTH OF $10,000 INVESTMENT (as of March 31, 2005)
LIFE VISION LEHMAN CITIGROUP
CONSERVATIVE BROTHERS 3 MONTH 70/20/10
FUND U.S. AGGREGATE S&P 500 TREASURY HYBRID
(T SHARES) BOND INDEX INDEX INDEX INDEX
------------ -------------- ------- --------- --------
3/11/03 10000 10000 10000 10000 10000
9950 10097 10010 9992 10006
10472 11650 10038 10242 10337
10606 11959 10063 10227 10361
12/03 11005 13414 10087 10260 10513
11268 13641 10110 10532 10731
11136 13875 10135 10275 10571
11280 13616 10167 10603 10794
12/04 11676 14872 10212 10705 10973
03/05 11606 14553 10270 10653 10927
This chart assumes an initial hypothetical investment of $10,000 made on
3/11/03. Total return is based on net change in N.A.V. (net asset value)
assuming reinvestment of distributions. Returns shown on this page include
reinvestment of all dividends and other distributions.
The Funds performance is compared to the Lehman Brothers U.S. Aggregate Bond
Index, the S&P 500 Index, the Citigroup 3 Month Treasury Bill Index, and a
Hybrid blend of 70/20/10 (70% of the Lehman Brothers U.S. Aggregate Bond Index,
20% of the S&P 500 Index and 10% of the Citigroup 3 Month Treasury Bill Index.)
The Lehman Brothers U.S. Aggregate Bond is comprised of securities that are
SEC-registered, taxable, and dollar denominated. The S&P 500 Index is a market
value-weighted index of 500 stocks designed to mimic the overall U.S. equity
market's industry weightings. The Citigroup 3 Month Treasury Bill Index tracks
the performance of 3 month U.S. Treasury Bills. The indices are unmanaged and
does not reflect the deduction of fees or taxes associated with a mutual fund,
such as investment management and fund accounting fees. Investors cannot invest
directly in an index, although they can invest in its underlying securities.
AVERAGE ANNUAL TOTAL RETURNS AS OF 3/31/05 (%)
----------------------------------------------
LIFE VISION SINCE
CONSERVATIVE FUND INCEPTION DATE+ 10 MONTH** 1 YEAR INCEPTION
- ----------------- --------------- ---------- ------ ---------
A SHARES WITHOUT SALES CHARGE 11/11/03 4.88 2.61 7.29
WITH SALES CHARGE* 0.98 -1.21 5.31
B SHARES WITHOUT CDSC 03/11/03 4.50 2.24 6.97
WITH CDSC* -0.50 -2.76 5.14
T SHARES 11/06/03 5.18 3.00 7.52
LEHMAN BROTHERS U.S. AGGREGATE BOND INDEX 4.27 1.15
S&P 500 INDEX 6.92 6.69 --
CITIGROUP 3 MONTH U.S. TREASURY BILL INDEX 1.42 1.45 --
HYBRID INDEX (70/20/10) 4.57 2.33 --
PAST PERFORMANCE DOES NOT GUARANTEE FUTURE RESULTS. THE PERFORMANCE DATA QUOTED
REPRESENTS PAST PERFORMANCE AND CURRENT RETURNS MAY BE LOWER OR HIGHER. TOTAL
RETURN FIGURES INCLUDE CHANGE IN SHARE PRICE, REINVESTMENT OF DIVIDENDS AND
CAPITAL GAINS AND DO NOT REFLECT TAXES THAT A SHAREHOLDER WOULD PAY ON FUND
DISTRIBUTIONS OR ON THE REDEMPTION OF FUND SHARES. THE INVESTMENT RETURN AND
PRINCIPAL VALUE WILL FLUCTUATE SO THAT AN INVESTOR'S SHARES, WHEN REDEEMED MAY
BE WORTH MORE OR LESS THAN THE ORIGINAL COST. FOR PERFORMANCE DATA CURRENT TO
THE MOST RECENT MONTH END, VISIT OUR WEBSITE AT WWW.STICLASSICFUNDS.COM.
*CLASS A SHARE PERFORMANCE REFLECTS THE MAXIMUM FRONT-END SALES CHARGE OF 3.75%
AND CLASS B SHARES REFLECT THE MAXIMUM CDSC (CONTINGENT DEFERRED SALES CHARGE)
OF 2.00% IN YEAR ONE ONLY.
**AGGREGATE TOTAL RETURN.
+ The performance quoted represents past performance of Crestar Bank's asset
allocation program, adjusted for fees and expenses for periods prior to June 30,
1997, and past performance of the T Shares for the period after the Fund's
inception on June 30, 1997 and the inception of the A Shares on October 16,
2003, and the inception of the B Shares on March 11, 2003. The asset allocation
program was not registered under the 1940 Act and therefore was not subject to
certain investment restrictions which may have adversely affected performance.
As of May 24, 1999, the CrestarFunds Life Vision Portfolio became the STI
Classic Life Vision Fund.
20
LIFE VISION GROWTH AND INCOME FUND
- --------------------------------------------------------------------------------
PORTFOLIO MANAGER(S):
- - Gregory A. Fraser, CFA
- - Alan Gayle
- --------------------------------------------------------------------------------
INVESTMENT CONCERNS
- --------------------------------------------------------------------------------
Stocks are more volatile and carry more risk and return potential than other
forms of investments. Bonds offer a relatively stable level of income, although
bond prices will fluctuate, providing the potential for principal gain or loss.
Cash equivalents offer low risk and low return potential.
- --------------------------------------------------------------------------------
MANAGEMENT DISCUSSION & ANALYSIS
- --------------------------------------------------------------------------------
Q: HOW DID THE FUND PERFORM AGAINST ITS BENCHMARK FOR THE PERIOD ENDED MARCH
31, 2005?
A: The Life Vision Growth & Income Fund outperformed its benchmark of 65% S&P
500, 25% Lehman Brothers U.S. Aggregate Bond Index and 10% 90-day T-bills
from May 31, 2004 through March 31, 2005. Outperformance can be attributed
to and overweight in equity, style allocation and individual manager
performance.
Q: WHAT FACTORS INFLUENCED THE FUND'S PERFORMANCE FOR THE PERIOD ENDED MARCH
31, 2005?
A: The key to the Fund's outperformance was an overweight in equities.
Performance was also enhanced by exposure to the international sector and
strong performance by the large-cap value-oriented funds, in addition to
the high yield fund.
Q: HOW DO YOU PLAN TO POSITION THE FUND, BASED ON MARKET CONDITIONS?
A: We expect to retain a high equity weight, relative to the benchmark, and
overweight positions in international, large-cap, and growth-oriented
funds.
[PIE CHART]
FUND ALLOCATION (as of March 31, 2005)(1) as a
percentage of total investments
Institutional Core Bond Fund 20.0%
Capital Appreciation Fund 19.1%
Growth and Income Fund 15.6%
International Equity Index Fund 11.9%
Value Income Stock Fund 10.4%
Aggressive Growth Stock Fund 4.8%
Prime Quality Money Market Fund 3.2%
Strategic Quantitative Equity Fund 3.0%
Mid-Cap Value Equity Fund 3.0%
Mid-Cap Equity Fund 3.0%
Small-Cap Value Equity Fund 2.0%
High Income Fund 2.0%
Small-Cap Growth Stock Fund 1.3%
Emerging Growth Stock Fund 0.7%
(1) PORTFOLIO COMPOSITION IS SUBJECT TO CHANGE
21
LIFE VISION GROWTH AND INCOME FUND
- --------------------------------------------------------------------------------
GROWTH OF $10,000 INVESTMENT (as of March 31, 2005)
LIFE VISION
GROWTH AND LEHMAN BROTHERS CITIGROUP
INCOME FUND U.S. AGGREGATE S&P 500 3 MONTH 65/25/10
(T SHARES) BOND INDEX INDEX TREASURY INDEX HYBRID INDEX
----------- --------------- ------- -------------- ------------
3/95 10000 10000 10000 10000 10000
10617 10953 10609 10146 10707
11176 11823 10818 10289 11265
12/95 11564 12534 11279 10429 11798
11879 13207 11079 10564 12143
12253 13799 11142 10697 12511
12396 14226 11348 10837 12823
12970 15410 11688 10977 13590
12740 15824 11623 11116 13820
14347 18584 12050 11260 15474
15385 19976 12450 11405 16372
12/97 15315 20550 12816 11553 16810
16703 23414 13016 11702 18460
16682 24192 13320 11851 18991
14980 21791 13883 12000 17850
17025 26427 13930 12138 20428
17107 27743 13861 12271 21155
18125 29695 13739 12410 22220
17235 27845 13832 12557 21258
12/99 18379 31985 13815 12713 23550
18904 32718 14120 12883 24064
18966 31849 14366 13068 23688
19453 31540 14799 13262 23670
19681 29074 15421 13470 22522
18717 25629 15889 13658 20794
19542 27128 15979 13805 21666
17801 23148 16716 13930 19704
12/01 19179 25621 16724 14021 21077
19442 25692 16739 14082 21131
18402 22252 17358 14144 19422
16034 18410 18153 14205 17539
16880 19961 18439 14260 18473
16237 19332 18695 14303 18205
18383 22307 19163 14343 19964
19062 22897 19135 14379 20286
12/03 20931 25683 19195 14413 21835
21574 26118 19706 14446 22213
21594 26567 19224 14481 22339
21392 26070 19839 14528 22236
23134 28476 20028 14592 23615
3/05 22890 27864 19932 14674 23271
This chart assumes an initial hypothetical investment of $10,000 made on
3/31/95. Total return is based on net change in N.A.V. (net asset value)
assuming reinvestment of distributions. Returns shown on this page include
reinvestment of all dividends and other distributions.
The Funds performance is compared to the S&P 500 Index, the Lehman Brothers U.S.
Aggregate Bond Index, the Citigroup 3 Month Treasury Bill Index, and a Hybrid
blend of 65/25/10 (65% of the S&P 500 Index, 25% of the Lehman Brothers U.S.
Aggregate Bond Index and 10% of the Citigroup 3 Month Treasury Bill Index). The
S&P 500 Index is a market value-weighted index of 500 stocks designed to mimic
the overall U.S. equity market's industry weightings. The Lehman Brothers U.S.
Aggregate Bond is comprised of securities that are SEC-registered, taxable, and
dollar denominated. The Citigroup 3 Month Treasury Bill Index tracks the
performance of 3 month U.S. Treasury Bills. The indices are unmanaged and do not
reflect the deduction of fees or taxes associated with a mutual fund, such as
investment management and fund accounting fees. Investors cannot invest directly
in an index, although they can invest in its underlying securities.
AVERAGE ANNUAL TOTAL RETURNS AS OF 3/31/05 (%)
----------------------------------------------
LIFE VISION
GROWTH AND INCOME FUND INCEPTION DATE+ 10 MONTH** 1 YEAR 3 YEAR 5 YEAR 10 YEAR
- ---------------------- --------------- ---------- ------ ------ ------ -------
A SHARES WITHOUT SALES CHARGE 11/05/03 7.37 5.60 5.41 3.79 8.58
WITH SALES CHARGE* 3.34 1.61 4.09 2.99 8.16
B SHARES WITHOUT CDSC 03/11/03 7.00 5.14 5.06 3.58 8.47
WITH CDSC* 2.00 0.14 3.83 3.23 8.47
T SHARES 12/31/92 7.77 6.10 5.59 3.90 8.63
S&P 500 INDEX 6.92 6.69 2.74 -3.16 10.79
LEHMAN BROTHERS U.S. AGGREGATE BOND INDEX 4.27 1.15 5.99 7.14 7.14
CITIGROUP 3 MONTH U.S. TREASURY BILL INDEX 1.42 1.45 1.34 2.61 3.90
HYBRID INDEX (65/25/10) 5.63 4.75 3.26 -0.67 8.81
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. FOR PERFORMANCE DATA CURRENT TO
THE MOST RECENT MONTH END, VISIT OUR WEBSITE AT WWW.STICLASSICFUNDS.COM.
*CLASS A SHARE PERFORMANCE REFLECTS THE MAXIMUM FRONT-END SALES CHARGE OF 3.75%
AND CLASS B SHARES REFLECT THE MAXIMUM CDSC (CONTINGENT DEFERRED SALES CHARGE)
OF 2.00% IN YEAR ONE ONLY.
**AGGREGATE TOTAL RETURN.
(1) The performance quoted represents past performance of Crestar Bank's asset
allocation program, adjusted for fees and expenses for periods prior to June 30,
1997, and past performance of the T Shares for the period after the Fund's
inception on June 30, 1997 and the inception of the A Shares on October 16,
2003, and the inception of the B Shares on March 11, 2003. The asset allocation
program was not registered under the 1940 Act and therefore was not subject to
certain investment restrictions which may have adversely affected performance.
As of May 24, 1999, the CrestarFunds Life Vision Portfolio became the STI
Classic Life Vision Fund.
22
LIFE VISION MODERATE GROWTH FUND
- --------------------------------------------------------------------------------
PORTFOLIO MANAGER(S):
- - Gregory A. Fraser, CFA
- - Alan Gayle
- --------------------------------------------------------------------------------
INVESTMENT CONCERNS
- --------------------------------------------------------------------------------
Stocks are more volatile and carry more risk and return potential than other
forms of investments. Bonds offer a relatively stable level of income, although
bond prices will fluctuate, providing the potential for principal gain or loss.
Cash equivalent offer low risk and low return potential.
- --------------------------------------------------------------------------------
MANAGEMENT DISCUSSION & ANALYSIS
- --------------------------------------------------------------------------------
Q: HOW DID THE FUND PERFORM AGAINST ITS BENCHMARK FOR THE PERIOD ENDED MARCH
31, 2005?
A: The Life Vision Moderate Growth Fund outperformed its benchmark of 50% S&P
500, 40% Lehman Aggregate Bond Index and 10% 90-day T-bills from May 31,
2004 through March 31, 2005. Outperformance can be attributed to and
overweight in equities, style allocation and individual manager
performance.
Q: WHAT FACTORS INFLUENCED THE FUND'S PERFORMANCE FOR THE PERIOD ENDED MARCH
31, 2005?
A: The key to the Fund's outperformance was an overweight in equities.
Performance was also enhanced by exposure to the international sector and
strong performance by the large-cap value-oriented funds, in addition to
the high yield fund.
Q: HOW DO YOU PLAN TO POSITION THE FUND, BASED ON MARKET CONDITIONS?
A: We expect to retain a high equity weight, relative to the benchmark, and
overweight positions in international, large-cap, and growth-oriented
funds.(1)
[PIE CHART]
FUND ALLOCATION (as of March 31, 2005)(1)
as a percentage of total investments
Institutional Core Bond Fund 39.0%
Capital Appreciation Fund 13.6%
Growth and Income Fund 11.4%
International Equity Index Fund 8.9%
Value Income Stock Fund 7.6%
Aggressive Growth Stock Fund 3.4%
Prime Quality Money Market Fund 3.2%
High Income Fund 2.9%
Strategic Quantitative Equity Fund 2.0%
Small-Cap Value Equity Fund 2.0%
Small-Cap Growth Stock Fund 2.0%
Mid-Cap Value Equity Fund 2.0%
Mid-Cap Equity Fund 2.0%
(1) PORTFOLIO COMPOSITION IS SUBJECT TO CHANGE
23
LIFE VISION MODERATE GROWTH FUND
- --------------------------------------------------------------------------------
GROWTH OF $10,000 INVESTMENT (as of March 31, 2005)
LIFE VISION CITIGROUP
MODERATE LEHMAN BROTHERS 3 MONTH
GROWTH FUND U.S. AGGREGATE S&P 500 TREASURY 50/40/10
(T SHARES) BOND INDEX INDEX INDEX HYBRID INDEX
----------- --------------- -------- --------- ------------
03/95 10000 10000 10000 10000 10000
10579 10953 10609 10146 10731
11033 11823 10818 10289 11255.6
12/95 11405 12534 11279 10429 11798.8
11639 13207 11079 10564 12046.3
11956 13799 11142 10697 12360.6
12094 14226 11348 10837 12663.7
12603 15410 11688 10977 13363.6
12397 15824 11623 11116 13531.8
13774 18584 12050 11260 14911.5
14678 19976 12450 11405 15701.1
12/97 14672 20550 12816 11553 16139.9
15835 23414 13016 11702 17372.4
15934 24192 13320 11851 17847.3
14661 21791 13883 12000 17307.7
16308 26427 13930 12138 19138.8
16392 27743 13861 12271 19598.2
17157 29695 13739 12410 20240.2
16349 27845 13832 12557 19680.6
12/99 17318 31985 13815 12713 21129.2
17815 32718 14120 12883 21613.7
17831 31849 14366 13068 21506.2
18255 31540 14799 13262 21707.5
18263 29074 15421 13470 21246.2
17657 25629 15889 13658 20255.2
18263 27128 15979 13805 20926.1
17023 23148 16716 13930 19737.1
12/01 18062 25621 16724 14021 20801
18210 25692 16739 14082 20857
17544 22252 17358 14144 19734.5
15930 18410 18153 14205 18339
16566 19961 18439 14260 19264.3
16144 19332 18695 14303 19073
17866 22307 19163 14343 20716.4
18436 22897 19135 14379 20991.5
12/03 19876 25683 19195 14413 22283.1
20496 26118 19706 14446 22715.1
20357 26567 19224 14481 22691.6
20340 26070 19839 14528 22775.8
21650 28476 20028 14592 23913.8
03/05 21457 27864 19932 14674 23628.8
This chart assumes an initial hypothetical investment of $10,000 made on
3/31/95. Total return is based on net change in N.A.V. (net asset value)
assuming reinvestment of distributions. Returns shown on this page include
reinvestment of all dividends and other distributions.
The Funds performance is compared to the S&P 500 Index, the Lehman Brothers U.S.
Aggregate Bond Index, the Citigroup 3 Month Treasury Bill Index, and a Hybrid
blend of 50/40/10 (50% of the S&P 500 Index, 40% of the Lehman Brothers U.S.
Aggregate Bond Index and 10% of the Citigroup 3 Month Treasury Bill Index). The
S&P 500 Index is a market value-weighted index of 500 stocks designed to mimic
the overall U.S. equity market's industry weightings. The Lehman Brothers U.S.
Aggregate Bond is comprised of securities that are SEC-registered, taxable, and
dollar denominated. The Citigroup 3 Month Treasury Bill Index tracks the
performance of 3 month U.S. Treasury Bills. The indices are unmanaged and does
not reflect the deduction of fees or taxes associated with a mutual fund, such
as investment management and fund accounting fees. Investors cannot invest
directly in an index, although they can invest in its underlying securities.
AVERAGE ANNUAL TOTAL RETURNS AS OF 3/31/05 (%)
----------------------------------------------
LIFE VISION
MODERATE GROWTH FUND INCEPTION DATE+ 10 MONTH** 1 YEAR 3 YEAR 5 YEAR 10 YEAR
- -------------------- --------------- ---------- ------ ------ ------ -------
A SHARES* WITHOUT SALES CHARGE 10/10/03 6.74 4.46 5.49 3.71 7.89
WITH CDSC* 2.76 0.54 4.15 2.93 7.49
B SHARES WITHOUT SALES CHARGE 03/11/03 6.28 4.00 5.08 3.47 7.77
WITH CDSC* 1.28 -1.00 3.86 3.13 7.77
T SHARES 12/31/92 6.98 4.69 5.62 3.79 7.93
S&P 500 INDEX 6.92 6.69 2.74 -3.16 10.79
LEHMAN BROTHERS U.S. AGGREGATE BOND INDEX 4.27 1.15 5.99 7.14 7.14
CITIGROUP 3 MONTH U.S. TREASURY BILL INDEX 1.42 1.45 1.34 2.61 3.90
HYBRID INDEX (50/40/10) 5.39 4.01 4.24 1.80 8.98
PAST PERFORMANCE DOES NOT GUARANTEE FUTURE RESULTS. THE PERFORMANCE DATA QUOTED
REPRESENTS PAST PERFORMANCE AND CURRENT RETURNS MAY BE LOWER OR HIGHER. TOTAL
RETURN FIGURES INCLUDE CHANGE IN SHARE PRICE, REINVESTMENT OF DIVIDENDS AND
CAPITAL GAINS AND DO NOT REFLECT TAXES THAT A SHAREHOLDER WOULD PAY ON FUND
DISTRIBUTIONS OR ON THE REDEMPTION OF FUND SHARES. THE INVESTMENT RETURN AND
PRINCIPAL VALUE WILL FLUCTUATE SO THAT AN INVESTOR'S SHARES, WHEN REDEEMED MAY
BE WORTH MORE OR LESS THAN THE ORIGINAL COST. FOR PERFORMANCE DATA CURRENT TO
THE MOST RECENT MONTH END, VISIT OUR WEBSITE AT WWW.STICLASSICFUNDS.COM.
*CLASS A SHARE PERFORMANCE REFLECTS THE MAXIMUM FRONT-END SALES CHARGE OF 3.75%
AND CLASS B SHARES REFLECT THE MAXIMUM CDSC (CONTINGENT DEFERRED SALES CHARGE)
OF 2.00% IN YEAR ONE ONLY.
**AGGREGATE TOTAL RETURN.
(1)The performance quoted represents past performance of Crestar Bank's asset
allocation program, adjusted for fees and expenses for periods prior to June 30,
1997, and past performance of the T Shares for the period after the Fund's
inception on June 30, 1997 and the inception of the A Shares on October 16,
2003, and the inception of the B Shares on March 11, 2003. The asset allocation
program was not registered under the 1940 Act and therefore was not subject to
certain investment restrictions which may have adversely affected performance.
As of May 24, 1999, the CrestarFunds Life Vision Portfolio became the STI
Classic Life Vision Fund.
24
MID-CAP EQUITY FUND
- --------------------------------------------------------------------------------
PORTFOLIO MANAGER(S):
- - Chad Deakins, CFA
- --------------------------------------------------------------------------------
INVESTMENT CONCERNS
- --------------------------------------------------------------------------------
Mid capitalization funds typically carry additional risks since smaller
companies generally have a higher risk of failure.
Equity securities (stocks) are more volatile and carry more risk than other
forms of investments, including investments in high-grade fixed income
securities. The net asset value per share of this Fund will fluctuate as the
value of the securities in the portfolio changes.
- --------------------------------------------------------------------------------
MANAGEMENT DISCUSSION & ANALYSIS
- --------------------------------------------------------------------------------
Q: HOW DID THE FUND PERFORM AGAINST ITS BENCHMARK FOR THE PERIOD ENDED MARCH
31, 2005?
A: The Fund returned 17.17% (T Shares) for the 10 month period ended March 31,
2005. The Russell MidCap(R) Index returned 15.53% for the same period. The
Fund outperformed its benchmark by 164 basis points (1.64%) for the period.
The best performing sectors for the period were Energy +54%, Materials,
+28.5% and Utilities +27.6%. The worst performing sectors were Consumer
Staples +11.8%, Health Care +7.5% and Information Technology +1.2%. Within
the Russell Mid Cap Index Large Cap stocks generally outperformed.
Technology stocks were the big laggards which explain why the lowest
dividend yielding stocks, and the highest beta stocks also did poorly.
Q: WHAT FACTORS INFLUENCED THE FUND'S PERFORMANCE FOR THE PERIOD ENDED MARCH
31, 2005?
A: Stock selection was positive in 7 of the 10 sectors. Performance was
strongest in Consumer Staples and Health care, while weakest in Utilities
and Industrials. Monsanto, Ryland Group, Rockwell Collin, Reynolds American
and Abercrombie & Fitch were the greatest contributors to outperformance.
These five stocks were large holdings through much of the period and were
all up more than 50%. The five largest detractors from performance were
four stocks held in the Fund: Avaya, Avnet, American Axle, ImClone Systems.
One stock we did not own during most of the period was TXU, a utility
company that increased 118%.(1)
Q: HOW DO YOU PLAN TO POSITION THE FUND, BASED ON MARKET CONDITIONS?
A: Valuation of the Mid cap segment of the market is slightly higher than
Large cap stocks but this was expected due to the high earnings growth. We
believe Mid cap stocks are in favor as Small cap managers have reduced
capacity and may drift into Mid cap for stock market exposure and
liquidity. Large cap managers often buy Mid cap stocks for exposure to
higher earnings growth.(1)
The Fund strategy involves segmenting stocks into different group or
sectors and modeling the drivers of performance in each group or sector.
Stocks have more recently been grouped into S&P Industry Groups, and in
some cases, Industries for Sectors where there is only one Industry Group,
such as Utilities. We believe this strategy allows for fundamentally based
information to be incorporated into the investment process. In total, 30
different Industry Groups or Industry models constructed based on tested
results. We continue with this modeling effort, supplemented by fundamental
due-diligence prior to purchasing any stock. This strategy blends growth
dynamics with valuation to select favorable reward versus risk securities.
We believe the resulting portfolio is well-positioned to do well within the
Mid cap core universe.(1)
25
MID-CAP EQUITY FUND
- --------------------------------------------------------------------------------
GROWTH OF $10,000 INVESTMENT (as of March 31, 2005)
MID-CAP RUSSELL
EQUITY FUND MIDCAP(R)
(T SHARES) INDEX
----------- ---------
03/95 10000 10000
10898 10837
11826 11798
12/95 12071 12178
12527 12911
12772 13275
13231 13690
13932 14492
13529 14373
15129 16322
17281 18490
12/97 16890 18695
18367 20715
18014 20403
14419 17378
17985 20583
17509 20486
19155 22710
17187 20758
12/99 20888 24335
23256 26789
22931 25580
23240 27323
20269 26343
17747 23578
20936 25826
16838 21213
12/01 20751 24861
19397 25917
16987 23442
14594 19308
14780 20837
14205 20344
16208 24060
16874 25607
12/03 19064 29185
19742 30686
19766 31130
19742 30869
22316 35085
03/05 22543 34996
This chart assumes an initial hypothetical investment of $10,000 made on
3/31/95. Total return is based on net change in N.A.V. (net asset value)
assuming reinvestment of distributions. Returns shown on this page include
reinvestment of all dividends and other distributions.
The Funds performance is compared to the Russell MidCap(R) Index a widely
recognized index that measures the performance of the 800 smallest companies in
the Russell universe. The index is unmanaged and does not reflect the deduction
of fees or taxes associated with a mutual fund, such as investment management
and fund accounting fees. Investors cannot invest directly in an index, although
they can invest in its underlying securities.
AVERAGE ANNUAL TOTAL RETURNS AS OF 3/31/05 (%)
----------------------------------------------
SINCE
MID-CAP EQUITY FUND INCEPTION DATE 10 MONTH** 1 YEAR 3 YEAR 5 YEAR 10 YEAR INCEPTION
- ------------------- -------------- ---------- ------ ------ ------ ------- ---------
A SHARES WITHOUT SALES CHARGE 01/31/94 16.79 13.69 4.68 -1.05 7.99 7.71
WITH SALES CHARGE* 12.37 9.40 3.37 -1.79 7.58 7.34
L SHARES WITHOUT CDSC 06/05/95 16.24 13.08 4.06 -1.64 -- 6.96
WITH CDSC* 14.24 11.08 4.06 -1.64 -- 6.96
T SHARES 02/02/94 17.17 14.18 5.14 -0.62 8.47 8.21
RUSSELL MIDCAP(R) INDEX 15.53 14.05 10.53 5.49 13.34 --
PAST PERFORMANCE DOES NOT GUARANTEE FUTURE RESULTS. THE PERFORMANCE DATA QUOTED
REPRESENTS PAST PERFORMANCE AND CURRENT RETURNS MAY BE LOWER OR HIGHER. TOTAL
RETURN FIGURES INCLUDE CHANGE IN SHARE PRICE, REINVESTMENT OF DIVIDENDS AND
CAPITAL GAINS AND DO NOT REFLECT TAXES THAT A SHAREHOLDER WOULD PAY ON FUND
DISTRIBUTIONS OR ON THE REDEMPTION OF FUND SHARES. THE INVESTMENT RETURN AND
PRINCIPAL VALUE WILL FLUCTUATE SO THAT AN INVESTOR'S SHARES, WHEN REDEEMED MAY
BE WORTH MORE OR LESS THAN THE ORIGINAL COST. FOR PERFORMANCE DATA CURRENT TO
THE MOST RECENT MONTH END, VISIT OUR WEBSITE AT WWW.STICLASSICFUNDS.COM.
*CLASS A SHARE PERFORMANCE REFLECTS THE MAXIMUM FRONT-END SALES CHARGE
OF 3.75% AND CLASS L SHARES REFLECT THE MAXIMUM CDSC (CONTINGENT
DEFERRED SALES CHARGE) OF 2.00% IN YEAR ONE ONLY.
**AGGREGATE TOTAL RETURN.
[PIE CHART]
SECTOR WEIGHTINGS as of March 31, 2005)(1)
as a percentage of total investments
Financials 19.4%
Consumer Discretionary 18.3%
Information Technology 13.8%
Industrials 10.7%
Health Care 10.3%
Energy 8.3%
Utilities 6.3%
Materials 4.8%
Consumer Staples 3.7%
Cash Equivalents 3.5%
Telecommunication Services 0.9%
(1) PORTFOLIO COMPOSITION IS SUBJECT TO CHANGE
26
MID-CAP VALUE EQUITY FUND
- --------------------------------------------------------------------------------
PORTFOLIO MANAGER(S):
- - Don Wordell
- --------------------------------------------------------------------------------
INVESTMENT CONCERNS
- --------------------------------------------------------------------------------
Mid capitalization funds typically carry additional risks since smaller
companies generally have a higher risk of failure.
Value-based investments are subject to the risk that the broad market may not
recognize their intrinsic value.
Equity securities (stocks) are more volatile and carry more risk than other
forms of investments, including investments in high-grade fixed income
securities. The net asset value per share of this Fund will fluctuate as the
value of the securities in the portfolio changes.
- --------------------------------------------------------------------------------
MANAGEMENT DISCUSSION & ANALYSIS
- --------------------------------------------------------------------------------
Q. HOW DID THE FUND PERFORM AGAINST ITS BENCHMARK FOR THE PERIOD ENDED MARCH
31, 2005?
A: Overall in the current environment of low interest rates and low inflation
small and mid cap stocks have performed well. For the trailing
10 month period ended March 31, 2005, the Russell MidCap(R) Value Index
performed extremely well, returning 20.48% with strong performance across
many sectors, especially Energy, Financials and Utilities. The largest
contributing sector was Financials due to its very heavy 30% plus weighting
in the index and the tremendous performance contribution from Real Estate
Investment Trusts (REIT's). REIT's, which are 10% of the index, produced a
total return of 23%. Utilities, which comprise almost 13% of the benchmark,
performed extremely well returning 36% over the last 10 months. Utilities
benefited from the overall concern of investors of an impending economic
slowdown. As both of these sectors became overvalued using traditional
valuation techniques, they were under weighted in the portfolio. The Fund
achieved a total return of 13.25% (T Shares) over the 10 months ended March
31, 2005. In the context of our expectations, this return was satisfactory.
Q. WHAT FACTORS INFLUENCED THE FUND'S PERFORMANCE FOR THE PERIOD ENDED MARCH
31, 2005?
A: The primary influence on the Fund's performance over the last 10 months has
been the overweight of Industrials, Technology and Consumer Discretionary.
One of the best performers in the Industrials sector was Rockwell
Automation (ROK), a provider of industrial automation and control
equipment. ROK was up 70% due to the market revaluing the stock as returns
and margins exceeded expectations. The company was able to successfully
restructure itself and become more of a consulting and software provider
for the manufacturing floor. We missed the target with stock selection in
Consumer Discretionary. Lear and Radio Shack were the culprits. Lear, a
supplier of automotive interior systems, was hurt by the production
cuts at GM and rising raw material costs. Radio Shack, the consumer
electronics retailer, underperformed due to slowing wireless sales, and two
negative earnings revisions in one month. The Energy sector proved to be a
great sector to invest in over the last year. The Fund benefited from
overweight positions in Unocal and Kerr-Mcgee. Both positions have been
sold due to their extreme valuations. The Fund maintained an underweight
position in Utilities and REIT's over this time period due primarily to
valuation, and this was a big driver of the underperformance. Even though
these are historically high yielding sectors, significant investment in
these sectors could not be justified due to the high valuation and weak
fundamental outlook.(1)
Q. HOW DO YOU PLAN TO POSITION THE FUND, BASED ON MARKET CONDITIONS?
A: Our outlook for the stock market and the domestic economy remains positive.
Our research is indicating that due to strong corporate profits, cash flows
and improved balance sheets we are on the front end of a cap-ex cycle.
These dynamics support our overweight position in Industrials, and
Information Technology. One of our favorite Industrials ideas is Pall Corp
(PLL), which is primarily engaged in the manufacture and sale of filters
that are used in multiple markets including the life sciences and
aerospace. The company has tremendous opportunities in front of them. An
internal cost reduction initiative, coupled with new products and markets
that are opening up for them. The Information Technology sector appears
cheap, especially semiconductors. Semiconductors are being ignored because
of perceived high inventories and therefore, gross margin pressure. We
disagree. One semiconductor company that we have been buying is Microchip
Technology (MCHP). Our research uncovered that MCHP has tremendous free
cash flow potential in the next cycle because they will not have to add
capacity to fill increased orders. This is a management team with which we
see eye to eye. They bought a manufacturing facility worth $1 billion for
$185 million. That makes them excellent value investors by recognizing an
under-utilized asset, and not paying up for it.
The Fund has performed well over the last 10 months, and will continue to
adhere to our Value process. This process uncovers stocks that pay secure
dividends, trade at or near their lower third of valuation and possess
financial stability. If any one of these three criteria erode, the stock is
sold from the portfolio. The Fund will not abandon or massage the process
to capture short-term performance, as history has shown, valuation
disconnects tend to revert back to normalcy. Therefore the Fund continues
to underweight the Utility and REIT sectors.(1)
27
MID-CAP VALUE EQUITY FUND
- --------------------------------------------------------------------------------
GROWTH OF $10,000 INVESTMENT (as of March 31, 2005)
MID-CAP RUSSELL
VALUE EQUITY MIDCAP(R)
FUND VALUE
(T SHARES) INDEX
------------ ---------
11/30/01 10000 10000
12/01 10515 10415
11225 11237
10079 10712
7753 8789
12/02 8280 9410
7599 9029
8950 10644
9406 11276
12/03 10723 12992
11355 13687
11676 13924
11585 14165
12/04 12890 16072
03/05 12836 16197
This chart assumes an initial hypothetical investment of $10,000 made on
11/31/01. Total return is based on net change in N.A.V. (net asset value)
assuming reinvestment of distributions. Returns shown on this page include
reinvestment of all dividends and other distributions.
The Funds performance is compared to the Russell MidCap Value Index a widely
recognized index that measures the performance of the companies in the Russell
universe with lower price-to-earnings ratios and lower forecasted growth values.
The index is unmanaged and does not reflect the deduction of fees or taxes
associated with a mutual fund, such as investment management and fund accounting
fees. Investors cannot invest directly in an index, although they can invest in
its underlying securities.
AVERAGE ANNUAL TOTAL RETURNS AS OF 3/31/05 (%)
----------------------------------------------
SINCE
MID-CAP VALUE EQUITY FUND INCEPTION DATE 10 MONTH** 1 YEAR 3 YEAR INCEPTION
- ------------------------- -------------- ---------- ------ ------ ---------
A SHARES WITHOUT SALES CHARGE 10/27/03 12.73 12.53 -- 21.21
WITH SALES CHARGE* 8.47 8.28 -- 17.97
L SHARES WITHOUT CDSC 11/30/01 12.47 12.26 3.86 7.07
WITH CDSC* 10.47 10.26 3.86 7.07
T SHARES 11/30/01 13.25 13.04 4.57 7.78
RUSSELL MIDCAP(R) VALUE INDEX 20.48 18.34 12.96 --
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. FOR PERFORMANCE DATA CURRENT TO
THE MOST RECENT MONTH END, VISIT OUR WEBSITE AT WWW.STICLASSICFUNDS.COM.
*CLASS A SHARE PERFORMANCE REFLECTS THE MAXIMUM FRONT-END SALES CHARGE OF 3.75%
AND CLASS L SHARES REFLECT THE MAXIMUM CDSC (CONTINGENT DEFERRED SALES CHARGE)
OF 2.00% IN YEAR ONE ONLY.
**AGGREGATE TOTAL RETURN
[PIE CHART]
SECTOR WEIGHTINGS as of March 31, 2005)(1)
as a percentage of total investments
Financials 25.6%
Industrials 17.5%
Consumer Discretionary 15.3%
Information Technology 13.0%
Materials 9.1%
Consumer Staples 7.5%
Health Care 4.8%
Energy 4.5%
Cash Equivalents 2.7%
(1) PORTFOLIO COMPOSITION IS SUBJECT TO CHANGE
28
SMALL CAP GROWTH STOCK FUND
- --------------------------------------------------------------------------------
PORTFOLIO MANAGER(S):
- - Mark D. Garfinkel, CFA
- --------------------------------------------------------------------------------
INVESTMENT CONCERNS
- --------------------------------------------------------------------------------
Small capitalization funds typically carry additional risks since smaller
companies generally have a higher risk of failure.
Equity securities (stocks) are more volatile and carry more risk than other
forms of investments, including investments in high-grade fixed income
securities. The net asset value per share of this Fund will fluctuate as the
value of the securities in the portfolio changes.
- --------------------------------------------------------------------------------
MANAGEMENT DISCUSSION & ANALYSIS
- --------------------------------------------------------------------------------
Q. HOW DID THE FUND PERFORM AGAINST ITS BENCHMARK FOR THE PERIOD ENDED MARCH
31, 2005?
A: For the 10 month period ended March 31, 2005, the Fund posted a return of
10.60% (T Shares) versus the 14.69% return of the S&P SmallCap 600/BARRA
Growth Index. Relative to other traditional small cap growth benchmarks,
the Fund achieved favorable results, outperforming the 4.1% and 4.6%
returns of the Russell 2000(R) Growth Index(2) and Lipper Small Cap
Growth(2) average, respectively.
Compared to the SmallCap 600/BARRA Growth Index, the Fund's lower market
capitalization bias was one of the most significant performance headwinds.
The Fund's weighted average market cap of $922 million was well below that
of the benchmark's $1.5 billion at period end. In addition, during the
year, the Fund held approximately 34% of the portfolio in companies with
market caps below $500 million versus only 9% for the benchmark. The total
return for companies with market caps less than $500 million in the index
was only -0.1%, almost 15% below the index return. This factor alone
resulted in negative 3.8% relative return versus the benchmark. While our
Fund truly has a small cap orientation, like the Russell 2000(R) Growth,
the same cannot be said for the S&P 600/BARRA Growth over the past year.
Q. WHAT FACTORS INFLUENCED THE FUND'S PERFORMANCE FOR THE PERIOD ENDED MARCH
31, 2005?
A: The most significant variance versus the benchmark was weak stock selection
from the Consumer Discretionary sector versus the index, underperforming by
2.1%. Two stocks in the index accounted for 1.5% of this variance,
including the largest stock in the index, NVR Corp, which has a current
market capitalization of $5.1 billion. Other sectors with weak relative
stock selection include Energy, Industrials, and Technology. The Fund did
experience strong stock selection out of the Consumer Staples and Materials
sectors. With regard to sector allocations, the Fund's average Technology
sector weight exceeded that of the index by 6%. This negatively impacted
results, since the Technology sector was the worst performing sector during
the period. Also, the Fund's underweight position in the top performing
Energy sector provided an additional headwind to performance.(1)
The Fund clearly had its share of positive performance stories during the
period. Some of those small growth companies that contributed most strongly
to the Fund's return include the following: Penn National Gaming (+96%),
Intuitive Surgical Group (+133%), AMX Corp (+121%), and bebe Stores
(+155%). Unfortunately, not all of our stock selections were as successful;
some of the companies that did not meet our expectations include the
following: Possis Medical (-71%), Transact Technologies (-69%),
Authentidate Holding (-68%), and Encore Wire (-50%).(1)
Q. HOW DO YOU PLAN TO POSITION THE FUND, BASED ON MARKET CONDITIONS?
A: In last year's annual report, we noted a shift in the underlying trends
driving the market during latter stages of the year. No longer were smaller
cap, lower quality, and lower profitability companies leading the market.
History suggests that following strong broad market advances driven by
liquidity, the stock market subsequently becomes more selective. We may
very well be entering the proverbial "stock-picker's" market, where
earnings growth, balance sheet quality, high and/or improving
profitability, and valuation are paramount for stock selection success.
With the Federal Reserve methodically applying brakes to the economy to
fight inflation, it seems that much of this thought has come to pass,
particularly through the most recent quarter. During this time, many
companies in the technology and telecommunications sectors have seen
significant price declines, bringing valuations of many of these types of
growth companies to attractive levels. As a result, Fund management has
been increasing its weight in these areas, based primarily on four themes
emerging in the marketplace: 1) up front spending in anticipation of a PC
upgrade cycle in 2006 2) the digital revolution in the home with greater
adoption of Hi-Def television and broadband communication, 3) continued
market expansion in wireless handheld devices with increased functionality,
and 4) the oft-delayed telecommunications CAPEX cycle from the recent
consolidations in the wireless carrier industry.(1)
In addition, the Fund is underweight in both the Consumer Discretionary and
Energy sectors. Within Consumer Discretionary in a broad sense, earnings
growth has either peaked or has begun to erode due to the headwinds of high
energy prices, coupled with rising interest rates from an unfriendly
Federal Reserve, which has typically been detrimental to the performance of
retail and other credit sensitive consumer stocks. Our focus remains on
those companies with strong growth opportunities in terms of square footage
expansion and strong market acceptance of products or services. In Energy,
we have been witnessing a divergence in the traditional macro
relationships, such as energy prices falling when inventory levels build.
Yet currently, energy prices continued to set new records despite these
rising inventory levels. At the same time, energy companies are seeing
strong price appreciation, causing valuation levels to rise near historical
cyclical peaks.(1)
With regard to overall stock selection, Fund management will continue to
focus on companies demonstrating accelerating earnings, sales momentum,
improving profitability trends, strong organic (non-acquisition) growth,
low-debt balance sheets, and a history of wealth creation for its
shareholders.
29
SMALL CAP GROWTH STOCK FUND
- --------------------------------------------------------------------------------
GROWTH OF $10,000 INVESTMENT (as of March 31, 2005)
SMALL CAP S&P SMALLCAP
GROWTH STOCK FUND 600/BARRA
(T SHARES) GROWTH INDEX
----------------- ------------
10/08/98 10000 10000
12/98 14630 12201
12968 11165
15661 12405
14850 12087
12/99 17637 14589
20524 15802
20504 15872
20560 15686
12/00 19712 14671
17624 12743
20444 14592
15776 12062
12/01 19550 14498
19759 15018
17750 13675
14226 11673
12/02 15111 12271
14139 11834
17559 13832
19269 14915
12/03 22007 16850
23784 17814
23639 18601
22801 18035
12/04 26234 20558
03/05 25032 20202
This chart assumes an initial hypothetical investment of $10,000 made on
10/08/98. Total return is based on net change in N.A.V. (net asset value)
assuming reinvestment of distributions. Returns shown on this page include
reinvestment of all dividends and other distributions.
The Funds performance is compared to the S&P Small Cap 600/BARRA Growth Index a
widely recognized index that measures the performance of the
small-capitalization growth sector of the U.S. equity market. It is a subset of
the S&P 600 Index consisting of those companies with the highest price-to-book
ratios within the S&P 600 Index. The index is unmanaged and does not reflect the
deduction of fees or taxes associated with a mutual fund, such as investment
management and fund accounting fees. Investors cannot invest directly in an
index, although they can invest in its underlying securities.
AVERAGE ANNUAL TOTAL RETURNS AS OF 3/31/05 (%)
----------------------------------------------
SINCE
SMALL CAP GROWTH STOCK FUND INCEPTION DATE+ 10 MONTH** 1 YEAR 3 YEAR 5 YEAR INCEPTION
- --------------------------- --------------- ---------- ------ ------ ------ ---------
A SHARES* WITHOUT SALES CHARGE 12/10/99 10.26 4.84 7.81 3.68 14.88
WITH SALES CHARGE* 6.11 0.89 6.44 14.21
L SHARES WITHOUT CDSC 10/08/98 9.71 4.19 7.11 2.99 14.05
WITH CDSC* 7.76 2.34 7.11 2.99 14.05
T SHARES 10/08/98 10.60 5.25 8.20 4.05 15.22
S&P SMALLCAP 600/BARRA GROWTH INDEX 14.69 13.41 10.39 5.04 --
PAST PERFORMANCE DOES NOT GUARANTEE FUTURE RESULTS. THE PERFORMANCE DATA QUOTED
REPRESENTS PAST PERFORMANCE AND CURRENT RETURNS MAY BE LOWER OR HIGHER. TOTAL
RETURN FIGURES INCLUDE CHANGE IN SHARE PRICE, REINVESTMENT OF DIVIDENDS AND
CAPITAL GAINS AND DO NOT REFLECT TAXES THAT A SHAREHOLDER WOULD PAY ON FUND
DISTRIBUTIONS OR ON THE REDEMPTION OF FUND SHARES. THE INVESTMENT RETURN AND
PRINCIPAL VALUE WILL FLUCTUATE SO THAT AN INVESTOR'S SHARES, WHEN REDEEMED MAY
BE WORTH MORE OR LESS THAN THE ORIGINAL COST. FOR PERFORMANCE DATA CURRENT TO
THE MOST RECENT MONTH END, VISIT OUR WEBSITE AT WWW.STICLASSICFUNDS.COM.
*CLASS A SHARE PERFORMANCE REFLECTS THE MAXIMUM FRONT-END SALES CHARGE OF 3.75%
AND CLASS L SHARES REFLECT THE MAXIMUM CDSC (CONTINGENT DEFERRED SALES CHARGE)
OF 2.00% IN YEAR ONE ONLY.
**AGGREGATE TOTAL RETURN.
+The A Shares opened on December 10, 1999. The performance shown for the A
Shares prior to such date is based on the performance of the T Shares adjusted
to reflect the maximum sales charge of 3.75% for the A Shares.
(2)The Russell 2000 Growth Index measures the performance of those Russell 2500
companies with higher price-to-book ratios and higher forecasted growth values.
The Lipper Small Cap Growth Funds Average is comprised of funds that, by
portfolio practice, invest at least 75% of their equity assets in companies with
market capitalizations (on a three-year weighted basis) less than 250% of the
dollar-weighted median of the smallest 500 of the middle 1,000 securities of the
S&P SuperComposite 1500 Index. Small-cap growth funds typically have an
above-average price-to-earnings ratio, price-to-book ratio, and three-year
sales-per-share growth value, compared to the S&P SmallCap 600 Index.
[PIE CHART]
SECTOR WEIGHTINGS as of March 31, 2005)(1)
as a percentage of total investments
Information Technology 28.9%
Industrials 18.9%
Health Care 16.4%
Consumer Discretionary 12.9%
Financials 8.8%
Materials 4.7%
Energy 3.5%
Consumer Staples 3.3%
Cash Equivalents 2.6%
(1) PORTFOLIO COMPOSITION IS SUBJECT TO CHANGE
30
SMALL CAP VALUE EQUITY FUND
- --------------------------------------------------------------------------------
PORTFOLIO MANAGER(S):
- - Brett Barner, CFA
- --------------------------------------------------------------------------------
INVESTMENT CONCERNS
- --------------------------------------------------------------------------------
Small capitalization funds typically carry additional risks since smaller
companies generally have a higher risk of failure.
Equity securities (stocks) are more volatile and carry more risk than other
forms of investments, including investments in high-grade fixed income
securities. The net asset value per share of this Fund will fluctuate as the
value of the securities in the portfolio changes.
Value-based investments are subject to the risk that the broad market may not
recognize their intrinsic value.
- --------------------------------------------------------------------------------
MANAGEMENT DISCUSSION & ANALYSIS
- --------------------------------------------------------------------------------
Q. HOW DID THE FUND PERFORM AGAINST ITS BENCHMARK FOR THE PERIOD ENDED MARCH
31, 2005?
A: The Fund continued its outperformance versus the Russell 2000(R) Value
Index by returning 17.57% (T Shares) over the 10 month period ended March
31, 2005. The Fund also outpaced the 15.32% total return for the Lipper
Small Cap Value Index(2) by 225 basis points (2.25%) over the same time
period.
Q. WHAT FACTORS INFLUENCED THE FUND'S PERFORMANCE FOR THE PERIOD ENDED MARCH
31, 2005?
A: We believe the outperformance of the Fund was due to superior stock
selection in Information Technology, Consumer Discretionary and Health
Care. In the Information Technology sector, the Fund's investment in
Autodesk Inc. (ADSK) +66.4%, innovative design software and digital content
company and Harris Corp. (HRS) +42.2%, an international communication
equipment company; are examples of superior stock selections which
contributed to the Fund's excess return versus the index. The Consumer
Discretionary sector, the Fund benefited by the investment in CBRL Group
(CBRL) +29.3%, a holding company that operates Cracker Barrel and Logan's
Roadhouse restaurants; and Nautilus Group Inc. +59.9%, a marketer and
developer of branded health and fitness products. The Fund's performance
was also assisted by the investment in Health Care by Cooper Companies
(COO), a leader in the worldwide vision market. COO has been increasing its
market share through acquisitions in the ocular market. The Fund's
underweight of Telecommunication Services and the overweight in Materials
positively contributed to the Fund's outperformance versus the Russell 2000
Value Index.(1)
Q. HOW DO YOU PLAN TO POSITION THE FUND, BASED ON MARKET CONDITIONS?
A: The Fund continues to utilize its bottom-up approach to stock selection.
This approach seeks dividend paying stocks that are trading at the lower
end of historical trading ranges, display characteristics of financial
strength and possess an identifiable catalyst that will assist in realizing
true value. The Fund does not make active sector allocations but allows the
process to define sector weights. The Fund will rely on the process for
direction when making alterations to sector positions. The Small Cap Value
Fund continues to be cautious on valuations in the Small Cap Value equity
arena. Large inflows of capital by non-traditional Small Cap Value
investors are skewing valuations to the upside for most securities in the
universe. This phenomenon has in turn caused lower quality names to
increase in price, therefore making stock selection critical for
outperformance. These non-traditional investors may also place undue
downside pressure on valuations when they decide to exit the Small Cap
realm. The Fund also recognizes the impact of higher interest rates on
security valuation. As the shift to a higher interest rate environment
proceeds, revaluation of equities will occur. The Fund remains very
cognizant of the effects of high commodity prices on company feedstock and
input costs. These effects could have negative affect on operating margins,
which could cause revaluation of securities. Those equities with the
highest valuations will likely see the most erosion in terms of price.(1)
31
SMALL CAP VALUE EQUITY FUND
- --------------------------------------------------------------------------------
GROWTH OF $10,000 INVESTMENT (as of March 31, 2005)
SMALL CAP
VALUE EQUITY
FUND RUSSELL 2000(R)
(T SHARES) VALUE INDEX
------------ ---------------
03/95 10000 10000
10562 10877
11223 11782
12/95 12017 12126
13008 12658
13818 13175
14364 13371
16132 14717
16900 14680
19427 16896
21851 19074
12/97 21389 19394
23460 21014
21372 20255
16673 16634
18513 18143
16050 16384
19231 19097
17665 17603
12/99 18009 17873
17266 18556
18278 18918
19498 20307
21244 21953
22411 22166
24396 24746
22411 21446
12/01 25749 25031
28249 27429
27736 26848
24250 21132
25301 22172
23681 21045
27730 25828
29914 27823
12/03 34675 32377
36647 34617
38090 34910
38147 34962
43507 39579
03/05 42687 38005
This chart assumes an initial hypothetical investment of $10,000 made on
3/31/95. Total return is based on net change in N.A.V. (net asset value)
assuming reinvestment of distributions. Returns shown on this page include
reinvestment of all dividends and other distributions.
The Funds performance is compared to the Russell 2000(R) Value Index a
widely-recognized, capitalization weighted index of companies in the Russell
2000(R) Index with lower growth rates and price-to-book ratios. The index is
unmanaged and does not reflect the deduction of fees or taxes associated with a
mutual fund, such as investment management and fund accounting fees. Investors
cannot invest directly in an index, although they can invest in its underlying
securities.
AVERAGE ANNUAL TOTAL RETURNS AS OF 3/31/05 (%)
----------------------------------------------
SINCE
SMALL CAP VALUE EQUITY FUND INCEPTION DATE+ 10 MONTH** 1 YEAR 3 YEAR 5 YEAR 10 YEAR INCEPTION
- --------------------------- --------------- ---------- ------ ------ ------ ------- ---------
A SHARES WITHOUT SALES CHARGE 10/09/03 17.26 16.11 14.47 19.67 15.53 15.64
WITH SALES CHARGE* 12.86 11.73 13.02 18.76 15.09 15.23
L SHARES WITHOUT CDSC 06/06/97 17.27 16.04 13.81 18.75 14.75 14.90
WITH CDSC* 15.27 14.04 13.81 18.75 14.75 14.90
T SHARES 08/31/94 17.57 16.48 14.75 19.85 15.62 15.72
RUSSELL 2000(R)VALUE INDEX 14.39 9.79 11.48 15.42 14.28 --
PAST PERFORMANCE DOES NOT GUARANTEE FUTURE RESULTS. THE PERFORMANCE DATA QUOTED
REPRESENTS PAST PERFORMANCE AND CURRENT RETURNS MAY BE LOWER OR HIGHER. TOTAL
RETURN FIGURES INCLUDE CHANGE IN SHARE PRICE, REINVESTMENT OF DIVIDENDS AND
CAPITAL GAINS AND DO NOT REFLECT TAXES THAT A SHAREHOLDER WOULD PAY ON FUND
DISTRIBUTIONS OR ON THE REDEMPTION OF FUND SHARES. THE INVESTMENT RETURN AND
PRINCIPAL VALUE WILL FLUCTUATE SO THAT AN INVESTOR'S SHARES, WHEN REDEEMED MAY
BE WORTH MORE OR LESS THAN THE ORIGINAL COST. FOR PERFORMANCE DATA CURRENT TO
THE MOST RECENT MONTH END, VISIT OUR WEBSITE AT WWW.STICLASSICFUNDS.COM.
*CLASS A SHARE PERFORMANCE REFLECTS THE MAXIMUM FRONT-END SALES CHARGE OF 3.75%
AND CLASS L SHARES REFLECT THE MAXIMUM CDSC (CONTINGENT DEFERRED SALES CHARGE)
OF 2.00% IN YEAR ONE ONLY.
**AGGREGATE TOTAL RETURN
+The performance quoted represents past performance of the SunTrust Bank's
internally managed common trust fund, adjusted for fees and expenses for periods
prior to January 31, 1997, and past performance of the T Shares for the periods
between January 31, 1997 and inception of the L Shares on June 6, 1997 and the A
Shares on October 9, 2003. The common trust fund was not registered under the
1940 Act and therefore was not subject to certain investment restrictions which
may have adversely affected performance.
(2)The Lipper Small Cap Value Funds Average Funds is comprised of funds that, by
portfolio practice, invest at least 75% of their equity assets in companies with
market capitalizations (on a three-year weighted basis) less than 250% of the
dollar-weighted median of the smallest 500 of the middle 1,000 securities of S&P
SuperComposite 1500 Index. Small-cap value funds typically have a below-average
price-to-earnings ratio, price-to-book ratio, and three-year sales-per-share
growth value, compared to the S&P SmallCap 600 Index.
[PIE CHART]
SECTOR WEIGHTINGS as of March 31, 2005)(1)
as a percentage of total investments
Industrials 21.5%
Consumer Discretionary 21.3%
Financials 15.2%
Information Technology 13.5%
Materials 11.8%
Health Care 8.3%
Consumer Staples 4.2%
Energy 3.2%
Utilities 1.0%
(1) PORTFOLIO COMPOSITION IS SUBJECT TO CHANGE
32
STRATEGIC QUANTITATIVE EQUITY FUND
- --------------------------------------------------------------------------------
PORTFOLIO MANAGER(S):
- - Edward E. Best, CFA
- --------------------------------------------------------------------------------
INVESTMENT CONCERNS
- --------------------------------------------------------------------------------
Equity securities (stocks) are more volatile and carry more risk than other
forms of investments, including investments in high-grade fixed income
securities. The net asset value per share of this Fund will fluctuate as the
value of the securities in the portfolio changes.
- --------------------------------------------------------------------------------
MANAGEMENT DISCUSSION & ANALYSIS
- --------------------------------------------------------------------------------
Q. HOW DID THE FUND PERFORM AGAINST ITS BENCHMARK FOR THE PERIOD ENDED MARCH
31, 2005?
A: From May 31, 2004 to March 31, 2005, the S&P 500 appreciated 6.92%
including reinvested dividends. Most of this appreciation came in the 2
months following the Presidential election. From May 31, 2004 until October
27, 2004, the S&P 500 was flat. From January 5, 2005 until March 31, 2005,
the S&P 500 was also flat. The market appreciated as the uncertainty of the
Presidential election was resolved. However, the rally was relatively short
lived since earnings growth looked to be headed to a period of sharp
deceleration from the 20%+ earnings growth in the late 2003 and early 2004
period to mid single-digits by early to mid 2005. Rising interest rates,
the depreciating dollar and higher oil prices also weighed on the market.
Small and Mid Capitalization stocks performed significantly better over
this time period. The S&P Mid Cap 400 was up 11.85%. The S&P Small Cap 600
was up 15.20%.
Over this period, "old" economy stocks generally out performed "new"
stocks. Energy stocks performed by far the best, appreciating 43.8%. Energy
stocks continue to benefit from an ever rising oil price. Utilities gained
28.2%. Material stocks increased 20.2%. Industrial stocks generated 14.7%
returns. At the other end of the spectrum, Information Technology stocks
declined 2.6%, after generating strong returns in the prior year. Health
Care stocks declined 1.3%. The Health Care index is predominately weighted
toward Large Capitalization Pharmaceutical firms, which are struggling with
patent expirations and lackluster pipelines.
Over this same period, the Fund's T Share class appreciated 15.84%
including dividends. The Fund's T Shares outperformed the S&P 500, the
primarily benchmark, by 8.92%. The Lipper's Multi-Cap Core funds'
average(2) appreciated 7.28%. The Fund's T Shares outperformed the Lipper
Multi-Cap Core funds' average by 8.56%.
Q. WHAT FACTORS INFLUENCED THE FUND'S PERFORMANCE FOR THE PERIOD ENDED MARCH
31, 2005?
A: Strong stock selection within almost all sectors contributed most of the
Fund's excess returns. Stock selection within Health Care, Consumer
Discretionary and Consumer Staples accounted for nearly two-thirds
of the Fund's excess returns. Stock selection with Information Technology
detracted modestly from the excess returns. While significantly less than
important than stock selection, Sector Allocation, including overweights in
Energy and Industrials, contributed fairly well to the excess returns.
Stock selection within Large Cap stocks produced slightly more of the
excess returns than stock selection with Small Cap stocks.(1)
Q. HOW DO YOU PLAN TO POSITION THE FUND, BASED ON MARKET CONDITIONS?
A: The Fund is currently significantly overweighted in Industrials, and
modestly overweighted in Consumer Discretionary. The Fund is modestly
underweighted in Financials, Information Technology and Health Care. After
previously being overweight in Energy, the Fund is currently weighted
inline with the benchmark.
33
STRATEGIC QUANTITATIVE EQUITY FUND
- --------------------------------------------------------------------------------
GROWTH OF $10,000 INVESTMENT (as of March 31, 2005)
STRATEGIC
QUANTITATIVE
EQUITY FUND S&P 500
(T SHARES) INDEX
------------ -------
8/7/03 10000 10000
09/03 10650 10087
12/03 12067 11314
03/04 12649 11506
06/04 12997 11703
09/04 12598 11485
12/04 14049 12544
03/05 14298 12275
This chart assumes an initial hypothetical investment of $10,000 made on 8/7/03.
Total return is based on net change in N.A.V. (net asset value) assuming
reinvestment of distributions. Returns shown on this page include reinvestment
of all dividends and other distributions.
The Funds performance is compared to the S&P 500 Index a market value-weighted
index of 500 stocks designed to mimic the overall U.S. equity market's industry
weightings. The index is unmanaged and does not reflect the deduction of fees or
taxes associated with a mutual fund, such as investment management and fund
accounting fees. Investors cannot invest directly in an index, although they can
invest in its underlying securities.
AVERAGE ANNUAL TOTAL RETURNS AS OF 3/31/05 (%)
----------------------------------------------
SINCE
STRATEGIC QUANTITATIVE EQUITY FUND+ INCEPTION DATE 10 MONTH** 1 YEAR INCEPTION
- ----------------------------------- -------------- ---------- ------ ---------
A SHARES* WITHOUT SALES CHARGE 10/08/03 15.54 12.73 16.49
WITH SALES CHARGE* 11.20 8.52 13.53
L SHARES WITHOUT CDSC 10/13/03 14.76 11.87 13.82
WITH CDSC* 12.76 9.87 13.82
T SHARES 08/07/03 15.84 13.03 24.20
S&P 500 INDEX 6.92 6.69 --
PAST PERFORMANCE DOES NOT GUARANTEE FUTURE RESULTS. THE PERFORMANCE DATA QUOTED
REPRESENTS PAST PERFORMANCE AND CURRENT RETURNS MAY BE LOWER OR HIGHER. TOTAL
RETURN FIGURES INCLUDE CHANGE IN SHARE PRICE, REINVESTMENT OF DIVIDENDS AND
CAPITAL GAINS AND DO NOT REFLECT TAXES THAT A SHAREHOLDER WOULD PAY ON FUND
DISTRIBUTIONS OR ON THE REDEMPTION OF FUND SHARES. THE INVESTMENT RETURN AND
PRINCIPAL VALUE WILL FLUCTUATE SO THAT AN INVESTOR'S SHARES, WHEN REDEEMED MAY
BE WORTH MORE OR LESS THAN THE ORIGINAL COST. FOR PERFORMANCE DATA CURRENT TO
THE MOST RECENT MONTH END, VISIT OUR WEBSITE AT WWW.STICLASSICFUNDS.COM.
*CLASS A SHARE PERFORMANCE REFLECTS THE MAXIMUM FRONT-END SALES CHARGE OF 3.75%
AND CLASS L SHARES REFLECT THE MAXIMUM CDSC (CONTINGENT DEFERRED SALES CHARGE)
OF 2.00% IN YEAR ONE ONLY.
**AGGREGATE TOTAL RETURN.
(2) The Lipper Multi Cap Core Funds Average is comprised of funds that, by
portfolio practice, invest in a variety of market capitalization ranges, without
concentrating 75% of their equity assets in any one market capitalization range
over an extended period of time. Multi-Cap funds will generally have between
25% to 75% of their assets invested in companies with market capitalizations (on
a three-year weighted basis) above 300% of the dollar-weighted median market
capitalization of the S&P Mid Cap 400 Index. Multi-Cap Core funds have wide
latitude in the companies in which they invest. These funds will normally have
an average price-to-earnings ratio, price-to-book ratio, and three-year earnings
growth figure, compared to the U.S. diversified multi-cap equity funds universe
average.
[PIE CHART]
SECTOR WEIGHTINGS as of March 31, 2005)(1)
as a percentage of total investments
Industrials 24.5%
Financials 14.7%
Consumer Discretionary 14.5%
Information Technology 12.0%
Health Care 10.1%
Energy 9.3%
Materials 7.3%
Consumer Staples 6.0%
Cash Equivalents 1.6%
(1) PORTFOLIO COMPOSITION IS SUBJECT TO CHANGE
34
TAX SENSITIVE GROWTH STOCK FUND
- --------------------------------------------------------------------------------
PORTFOLIO MANAGER(S):
- - Parker W. Thomas, Jr.
- --------------------------------------------------------------------------------
INVESTMENT CONCERNS
- --------------------------------------------------------------------------------
The fund's income may be subject to certain state and local taxes and, depending
on your tax status, the federal alternative minimum tax.
Equity securities (stocks) are more volatile and carry more risk than other
forms of investments, including investments in high-grade fixed income
securities. The net asset value per share of this Fund will fluctuate as the
value of the securities in the portfolio changes.
- --------------------------------------------------------------------------------
MANAGEMENT DISCUSSION & ANALYSIS
- --------------------------------------------------------------------------------
Q. HOW DID THE FUND PERFORM AGAINST ITS BENCHMARK FOR THE PERIOD ENDED MARCH
31, 2005?
A: The stock market, as measured by the S&P 500 Index advanced from the May
31, 2004 level. The index began this 10 month time period at 1120.68 and
ended 5.3% higher at 1180.59 on March 31, 2005. When dividends are
included, the total return for the index was 6.92%. The last 10 months
included a continuation of strong earnings growth, which helped stock
prices. However, the Federal Reserve continued to raise short term rates
and the price of oil exploded to the $55 area, a combination which is
proving to be negative for overall stock prices.
Q. WHAT FACTORS INFLUENCED THE FUND'S PERFORMANCE FOR THE PERIOD ENDED MARCH
31, 2005?
A: Against this backdrop, the Fund produced a moderately disappointing result.
For the 10 months ended March 31, 2005, the Fund returned 3.74% (T Shares)
compared to 6.9% for the Funds' benchmark index, the S&P 500 Index.
Different sector weightings accounted for about half of the short fall. Two
of the better performing sectors, Utilities (up 29%) and Telecommunications
(up 8.4%) were not represented in the Fund since these two sectors have
very few growth companies. Information Technology, a sector which does have
growth companies, was overweighed, but it had the worst stock performance
(-8.3%) as the rebound in earnings for these companies in 2003, slowed to
more sustainable levels in 2004.
The other half of the return shortfall continues a trend which is now in
its third year, namely, that investing in financially strong, large-cap
growth companies has not produced good returns. The table below shows the
price change of those stocks with market caps of at least $100 billion
which were held in the Fund at the beginning of the period.
All of these companies are financially strong and, in our opinion, have
good long term prospects. Some are suffering from short term problems:
Pfizer and the industry problem with Cox 2 inhibitors, American
International Group and its possible fraudulent accounting practices,
Procter & Gamble and its acquisition of Guidant and Wal-Mart's revenues
being negatively impacted by higher oil prices. We are confident that these
problems will be successfully resolved.
Q. HOW DO YOU PLAN TO POSITION THE FUND, BASED ON MARKET CONDITIONS?
A: The Fund's philosophy is to invest in companies with high and stable
earnings growth and/or companies with improving earnings growth. Emphasis
is placed on financially strong companies (large & mid-sized) which are
market leaders in their respective industry segments as demonstrated by
revenue growth, market shares and levels of profitability. The key elements
of our philosophy are: that stocks of quality companies do well over time,
good fundamental analysis identifies the sustainability of a company's
earnings growth rate, risk control is essential and an active process, and
after-tax returns are important. The Fund's approach for controlling risk
is to: (1) Maintain significant exposure to companies with stable earnings
growth as well as companies whose earnings growth is more exposed to the
growth of the economy as a whole; (2) Be diversified among the major
industry sectors; (3) Have representation in very large, large and medium
sized companies and (4) Have a portfolio of 50-70 stocks so as to reduce
the stock market risk associated with the misfortunes of specific
companies. In addition, the Fund manager employs an active sell discipline
to weed out companies whose future earnings growth rate has deteriorated or
has become significantly more uncertain or to reduce holdings which have
been so successful that they have become an oversized major holding in the
Fund.
Going forward, we want to emphasize our conviction that investing in high
quality growth companies is a successful long term strategy. We identify
companies that are consistently growing their earnings and/or improving
their earnings trends and try and buy them at reasonable prices. Just as
importantly, we want to disengage from companies where the long-term
earnings growth is slowing and/ or where the uncertainty about their future
earnings growth rate has risen to an unacceptable level. We appreciate your
continued confidence in the Fund, and look forward to the future with great
confidence.
35
TAX SENSITIVE GROWTH STOCK FUND
- --------------------------------------------------------------------------------
GROWTH OF $10,000 INVESTMENT (as of March 31, 2005)
TAX SENSITIVE
GROWTH STOCK FUND S&P 500
(T SHARES) INDEX
----------------- -------
12/95 10000 10000
10438 10537
10768 11009
11189 11349
12100 12295
12459 12625
14714 14827
15587 15937
12/97 15584 16395
17383 18680
17851 19300
16072 17385
20528 21084
22310 22134
24134 23691
22706 22215
12/99 25607 25518
26669 26103
25734 25409
25330 25163
22497 23196
18856 20447
19588 21643
16575 18468
12/01 18400 20441
18542 20497
16291 17753
13652 14687
14347 15925
14213 15423
15491 17796
15828 18267
12/03 17383 20490
17570 20837
17757 21195
17316 20799
18572 22718
03/05 18080 22230
This chart assumes an initial hypothetical investment of $10,000 made on
12/31/95. Total return is based on net change in N.A.V. (net asset value)
assuming reinvestment of distributions. Returns shown on this page include
reinvestment of all dividends and other distributions.
The Funds performance is compared to the S&P 500 Index a market value-weighted
index of 500 stocks designed to mimic the overall U.S. equity market's industry
weightings. The index is unmanaged and does not reflect the deduction of fees or
taxes associated with a mutual fund, such as investment management and fund
accounting fees. Investors cannot invest directly in an index, although they can
invest in its underlying securities.
AVERAGE ANNUAL TOTAL RETURNS AS OF 3/31/05 (%)
----------------------------------------------
SINCE
TAX SENSITIVE GROWTH STOCK FUND INCEPTION DATE+ 10 MONTH** 1 YEAR 3 YEAR 5 YEAR INCEPTION
- ------------------------------- --------------- ---------- ------ ------ ------ ---------
A SHARES WITHOUT SALES CHARGE 10/14/03 3.42 2.50 -1.01 -7.58 6.55
WITH SALES CHARGE* -0.47 -1.33 -2.27 -8.28 6.11
L SHARES WITHOUT CDSC 12/15/98 2.86 1.84 -1.87 -8.45 5.86
WITH CDSC* 0.86 -0.16 -1.87 -8.45 5.86
T SHARES 12/31/95 3.74 2.90 -0.84 -7.48 6.61
S&P 500 INDEX 6.92 6.69 2.74 -3.16 --
PAST PERFORMANCE DOES NOT GUARANTEE FUTURE RESULTS. THE PERFORMANCE DATA QUOTED
REPRESENTS PAST PERFORMANCE AND CURRENT RETURNS MAY BE LOWER OR HIGHER. TOTAL
RETURN FIGURES INCLUDE CHANGE IN SHARE PRICE, REINVESTMENT OF DIVIDENDS AND
CAPITAL GAINS AND DO NOT REFLECT TAXES THAT A SHAREHOLDER WOULD PAY ON FUND
DISTRIBUTIONS OR ON THE REDEMPTION OF FUND SHARES. THE INVESTMENT RETURN AND
PRINCIPAL VALUE WILL FLUCTUATE SO THAT AN INVESTOR'S SHARES, WHEN REDEEMED MAY
BE WORTH MORE OR LESS THAN THE ORIGINAL COST. FOR PERFORMANCE DATA CURRENT TO
THE MOST RECENT MONTH END, VISIT OUR WEBSITE AT WWW.STICLASSICFUNDS.COM.
*CLASS A SHARE PERFORMANCE REFLECTS THE MAXIMUM FRONT-END SALES CHARGE OF 3.75%
AND CLASS L SHARES REFLECT THE MAXIMUM CDSC (CONTINGENT DEFERRED SALES CHARGE)
OF 2.00% IN YEAR ONE ONLY.
**AGGREGATE TOTAL RETURN
+The performance quoted represents past performance of the SunTrust Bank's
internally managed common trust fund, adjusted for fees and expenses for periods
prior to December 12, 1998 and inception of the A and L Shares on October 14,
2003 and December 15, 1998, respectively. The common trust fund was not
registered under the 1940 Act and therefore was not subject to certain
investment restrictions which may have adversely affected performance Because
the common trust fund was not registered under the 1940 Act, it is possible to
reflect tax consequences when calculating after-tax returns periods prior to the
inception of this class of shares. Therefore the after-tax
[PIE CHART]
SECTOR WEIGHTINGS as of March 31, 2005)(1)
as a percentage of total investments
Health Care 19.7%
Consumer Discretionary 17.7%
Industrials 15.5%
Information Technology 14.1%
Financials 13.4%
Energy 8.8%
Consumer Staples 5.6%
Materials 3.6%
Cash Equivalents 1.6%
(1) PORTFOLIO COMPOSITION IS SUBJECT TO CHANGE
36
VALUE INCOME STOCK FUND
- --------------------------------------------------------------------------------
PORTFOLIO MANAGER(S):
- - Mills Riddick, CFA
- --------------------------------------------------------------------------------
INVESTMENT CONCERNS
- --------------------------------------------------------------------------------
Equity securities (stocks) are more volatile and carry more risk than other
forms of investments, including investments in high-grade fixed income
securities. The net asset value per share of this Fund will fluctuate as the
value of the securities in the portfolio changes.
Value-based investments are subject to the risk that the broad market may not
recognize their intrinsic value.
- --------------------------------------------------------------------------------
MANAGEMENT DISCUSSION & ANALYSIS
- --------------------------------------------------------------------------------
Q. HOW DID THE FUND PERFORM AGAINST ITS BENCHMARK FOR THE PERIOD ENDED MARCH
31, 2005?
A: For the 10 month period ended March 31,2005 the Fund returned 11.42%
compared to 10.73% and 14.83% for it's primary benchmarks the S&P 500/BARRA
Value Index and the Russell 1000 Value Index. The Fund underperformed the
Russell 1000 Value Index, the principal cause for this underperformance was
the Fund's underweight in the two best performing sectors of the benchmark,
Energy and Utilities. Oil prices made a dazzling upward move over this
period contrary to what traditional analysis of supply and demand would
suggest. Utilities moved in tandem with the decline in interest rates and
benefited from the overall concern by investors of an impending economic
slowdown. Thus, our models deemed most Energy and Utilities stocks to be
overvalued. Interestingly, the Fund outperformed the Barra Value Index for
the period primarily because it carries a much lower weighting in Energy
stocks than the Russell Index.
Q. WHAT FACTORS INFLUENCED THE FUND'S PERFORMANCE FOR THE PERIOD ENDED MARCH
31, 2005?
A: The best stocks in the period were mostly found in the Energy space with
Unocal and Kerr-McGee leading the way. Both benefited from M&A speculation
as well as the continued meteoric move in oil prices. May Department Stores
posted nice gains on a merger announcement with Federated Department
Stores, which looks to be very complementary in terms of both synergies and
geographic overlap. Rockwell Automation consistently beat earnings
expectations while transforming themselves into a more technology based
company. Lockheed Martin performed well as the company got the go ahead
for full rate production of the F/A-22 fighter aircraft.
The worst stocks in the period suffered primarily because of lowered
earnings outlooks. A good example is Lear Corp. which lowered its earnings
guidance based on higher raw materials costs and auto production schedules
being cut at the Big Three auto makers. Tektronix declined because of a
more tepid earnings outlook going forward coming off of many quarters of
double digit growth.
Q. HOW DO YOU PLAN TO POSITION THE FUND, BASED ON MARKET CONDITIONS?
The Fund is about equal weight in Consumer Discretionary with our favorites
being Mattel and Newell Rubbermaid. Mattel has a great balance sheet,
improving strategy for Barbie and very strong cash flow which is finding
its way into increased share buybacks and higher dividends. Newell has sold
low margin businesses, is focusing on new product rollouts and streamlining
operations. The Fund is over weight in Consumer Staples with positions like
Pepsico that exhibit not only strong financial characteristics but solid
fundamentals as well.
The Fund is significantly underweight in Energy due to price targets being
achieved but overweight in Materials. The Fund currently owns only
integrated companies like Exxon Mobil rather than E&P or Service/Drillers
because of very solid cash flow and diversification. DuPont is a name we
like in Materials because it has gone through a major restructuring where
commodity chemical businesses were sold and proceeds redirected into higher
return operations like life sciences.
The Fund is underweight in Financials. The interest rate sensitivity of
these stocks has risen dramatically since the early nineties led by
mortgage related issues. Currently within the financial domain we are
emphasizing capital markets, processing and asset management and avoiding
the more retail or mortgage related companies.
The Fund is overweight in Industrials while maintaining an equal weight in
Technology. Industrials we like exhibit strong balance sheets and good
operating leverage like General Electric. Diebold is the type of Technology
name we like primarily because of its strong balance sheet, cash flow and
dividend profile.
The Fund is slightly overweight in Health Care. The pharmaceutical
companies have been attractive from a valuation standpoint for quite some
time but we haven't been able to get comfortable with their respective
growth outlooks given the contentious political and regulatory environment
as well as the generic drug onslaught they have been experiencing. We will
become much more constructive as the generic risk subsides in 2005 and EPS
visibility increases.
The Fund is about equal weight in Telecommunications and underweight
Utilities. Telecom services companies are experiencing increased
competition from cable and internet telephony. Utilities are expensive
relative to history. They will be used as a source of funds.
The key issues for the market remain the future path of Fed tightening, oil
prices and bond yields. We believe profit growth will continue to slow but
stay positive. In this low growth environment companies with well defined
dividend policies should continue to do well since dividend yield will
become a more important source of total return. The Fund has consistently
focused on these types of companies since inception.
37
VALUE INCOME STOCK FUND
- --------------------------------------------------------------------------------
GROWTH OF $10,000 INVESTMENT (as of March 31, 2005)
Value Income S&P 500/
Stock Fund BARRA Russell 1000
(T Shares) Value Index Value Index
---------- ----------- ------------
03/95 10000 10000 10000
10649 10871 10895
11439 11736 11847
12/95 12290 12495 12633
12939 13294 13349
13427 13566 13579
13852 13925 13973
14682 15244 15368
15114 15512 15761
16974 17757 18085
18528 19385 19886
12/97 18658 19814 20774
20896 22104 23196
20111 22218 23300
18196 19349 20601
20632 22722 24021
20303 23369 24365
23421 25893 27113
20578 23504 24457
12/99 20027 25613 25786
19258 25673 25909
18760 24570 24695
20001 26736 26637
22201 27171 27595
21153 25398 25979
22373 26517 27248
20247 22220 24264
12/01 21989 23989 26053
22895 24307 27118
21029 21720 24809
16846 17276 20151
18587 18987 22008
17296 17941 20938
19860 21321 24555
20405 21863 25062
12/03 22982 25023 28618
23718 25860 29485
24267 26066 29744
24423 26337 30203
26448 28953 33338
03/05 26472 28249 33367
This chart assumes an initial hypothetical investment of $10,000 made on
3/31/95. Total return is based on net change in N.A.V. (net asset value)
assuming reinvestment of distributions. Returns shown on this page include
reinvestment of all dividends and other distributions.
The Funds performance is compared to the S&P 500 /BARRA Value Index and the
Russell 1000 Value Index. The S&P 500/BARRA Value Index is comprised of
securities in the S&P 500 Index that have lower price-to-book ratios. The
Russell 1000 Value Index is comprised of the 1000 securities found in the
Russell universe with a less-than-average growth orientation. Companies in this
index generally have low price- to-book and price-to-earning ratios, higher
dividend yields, and lower forecasted growth values. The index is unmanaged and
does not reflect the deduction of fees or taxes associated with a mutual fund,
such as investment management and fund accounting fees. Investors cannot invest
directly in an index, although they can invest in its underlying securities.
AVERAGE ANNUAL TOTAL RETURNS AS OF 3/31/05 (%)
----------------------------------------------
VALUE INCOME STOCK FUND INCEPTION DATE+ 10 MONTH** 1 YEAR 3 YEAR 5 YEAR 10 YEAR
A SHARES WITHOUT SALES CHARGE 02/17/93 11.18 11.27 4.55 6.16 9.82
WITH SALES CHARGE* 6.96 7.14 3.24 5.36 9.39
L SHARES WITHOUT CDSC 06/01/95 10.46 10.46 3.80 5.38 9.04
WITH CDSC* 8.46 8.46 3.80 5.38 9.04
T SHARES 10/31/89 11.42 11.61 4.96 6.57 10.22
S&P 500/BARRA VALUE INDEX 10.73 9.24 5.14 1.93 10.94
RUSSELL 1000 VALUE INDEX 14.83 13.17 7.16 5.19 12.81
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. FOR PERFORMANCE DATA CURRENT TO
THE MOST RECENT MONTH END, VISIT OUR WEBSITE AT WWW.STICLASSICFUNDS.COM.
*CLASS A SHARE PERFORMANCE REFLECTS THE MAXIMUM FRONT-END SALES CHARGE OF 3.75%
AND CLASS L SHARES REFLECT THE MAXIMUM CDSC (CONTINGENT DEFERRED SALES CHARGE)
OF 2.00% IN YEAR ONE ONLY.
**AGGREGATE TOTAL RETURN.
+ The performance quoted represents past performance of the SunTrust Bank's
internally managed common trust fund, adjusted for fees and expenses for periods
prior to February 12, 1993, and past performance of the T Shares for the periods
between February 12, 1993 and inception of the A and L Shares on February 17,
1993 and June 1, 1995, respectively. The common trust fund was not registered
under the 1940 Act and therefore was not subject to certain investment
restrictions which may have adversely affected performance.
[PIE CHART]
SECTOR WEIGHTINGS as of March 31, 2005)(1)
as a percentage of total investments
Financials 23.6%
Industrials 16.7%
Consumer Staples 10.2%
Consumer Discretionary 10.0%
Materials 9.0%
Energy 6.5%
Health Care 6.3%
Information Technology 5.6%
Telecommunication Services 5.3%
Cash Equivalents 4.6%
Utilities 2.2%
(1) PORTFOLIO COMPOSITION IS SUBJECT TO CHANGE
38
INVESTMENT ADVISER:
Trusco Capital Management, Inc.
This information must be preceded or accompanied by
a current prospectus for each Fund described. An
investor should consider the Fund's investment
objectives, risks, charges and expenses carefully before
investing or sending money. This and other important
information about STI Classic Funds can be found
in the Fund's prospectus. For additional information
please call 1-800-428-6970, option 1, or by visiting our
Website at www.sticlassicfunds.com. Please read the
prospectus carefully before investing.
DISTRIBUTOR:
BISYS Fund Service LP
----------------------------------------------------------
Not FDIC Insured - No Bank Guarantee - May Lose Value
----------------------------------------------------------
[STI CLASSIC FUNDS LOGO]
STI-AR-EQ 0305
06/05
SCHEDULE OF PORTFOLIO INVESTMENTS
STI CLASSIC EQUITY FUNDS March 31, 2005 (Amounts in thousands, except shares)
AGGRESSIVE GROWTH STOCK FUND
<Table>
<Caption>
- -------------------------------------------------------
Shares or
Principal
Amount Value
- -------------------------------------------------------
COMMON STOCKS (97.0%)
CONSUMER DISCRETIONARY (20.8%)
Best Buy Co., Inc. 23,300 $ 1,258
Blue Nile, Inc. * 27,500 760
Coach, Inc. * 25,000 1,416
eBay, Inc. * 74,900 2,792
Garmin Ltd. 4,254 197
Getty Images, Inc. * 4,302 306
IAC/Interactive Corp. * 56,600 1,260
Omnicom Group, Inc. 10,600 938
Starbucks Corp. * 58,000 2,997
Walt Disney Co. (The) 56,400 1,620
-------
13,544
-------
CONSUMER STAPLES (5.3%)
Avon Products, Inc. 41,300 1,774
Whole Foods Market, Inc. 16,100 1,644
-------
3,418
-------
FINANCIALS (11.8%)
BlackRock, Inc., Cl A 13,500 1,012
Capital One Financial Corp. 37,000 2,767
Investors Financial Services
Corp. 54,600 2,670
SLM Corp. 23,700 1,181
-------
7,630
-------
HEALTH CARE (17.9%)
Alcon, Inc. 7,000 625
Biosite, Inc. * 11,800 614
Cephalon, Inc. * 27,500 1,288
Eyetech Pharmaceuticals, Inc. * 7,544 207
Forest Laboratories, Inc. * 38,800 1,433
Genentech, Inc. * 21,741 1,231
Gilead Sciences, Inc. * 59,300 2,122
Johnson & Johnson 16,900 1,135
Kyphon, Inc. * 12,700 320
Laboratory Corp. of America
Holdings * 1,472 71
Martek Biosciences Corp. * 15,100 879
Medicis Pharmaceutical Corp.,
Cl A 22,500 675
Wright Medical Group, Inc. * 41,500 996
-------
11,596
-------
</Table>
<Table>
<Caption>
- -------------------------------------------------------
Shares or
Principal
Amount Value
- -------------------------------------------------------
INDUSTRIALS (1.7%)
Monster Worldwide, Inc. * 39,802 $ 1,116
-------
INFORMATION TECHNOLOGY (37.1%)
Alliance Data Systems Corp. * 16,100 650
Apple Computer, Inc. * 49,400 2,058
Avaya, Inc. * 37,900 443
Broadcom Corp., Cl A * 23,500 703
CheckFree Corp. * 4,869 198
Cisco Systems, Inc. * 19,225 344
CNET Networks, Inc. * 73,900 698
Cognizant Technology Solutions
Corp., Cl A * 74,200 3,428
Computer Associates
International, Inc. 84 2
Dell, Inc. * 38,200 1,468
First Data Corp. 3,382 133
Fiserv, Inc. * 6,081 242
Flextronics International Ltd.
* 106,300 1,280
Google, Inc. * 4,000 722
Intel Corp. 50,500 1,173
International Business Machines
Corp. 4,252 389
Juniper Networks, Inc. * 42,800 944
Microsoft Corp. 29,054 702
Paychex, Inc. 39,800 1,306
QUALCOMM, Inc. 72,500 2,657
SRA International, Inc., Cl A * 18,800 1,133
VeriSign, Inc. * 23,833 684
Yahoo!, Inc. * 82,000 2,780
-------
24,137
-------
TELECOMMUNICATION SERVICES (2.4%)
Nextel Communications, Inc. * 38,100 1,083
Sprint Corp. 19,600 446
-------
1,529
-------
Total Common Stocks (Cost
$59,915) 62,970
-------
DEPOSITARY RECEIPTS (0.4%)
Nasdaq-100 Trust, Series 1 7,609 278
-------
Total Depositary Receipts (Cost
$279) 278
-------
</Table>
39
<Table>
<Caption>
- -------------------------------------------------------
Shares or
Principal
Amount Value
- -------------------------------------------------------
REPURCHASE AGREEMENTS (3.3%)
Merrill Lynch & Co., Inc.,
2.820%, dated 03/31/05, to be
repurchased on 04/01/05,
repurchase price $2,140,686
(collateralized by U.S.
Government Agencies, 5.500-
6.500%, due 01/01/11-
01/01/17; total market value
$2,183,692) $ 2,141 $ 2,141
-------
Total Repurchase Agreements (Cost
$2,141) 2,141
-------
Total Investments (Cost
$62,335)(a) -- 100.7% 65,389
Liabilities in excess of other
assets -- (0.7)% (466)
-------
Net Assets -- 100.0% $64,923
=======
</Table>
See notes to schedules of portfolio investments and notes to financial
statements.
40
SCHEDULE OF PORTFOLIO INVESTMENTS
STI CLASSIC EQUITY FUNDS March 31, 2005 (Amounts in thousands, except shares)
BALANCED FUND
<Table>
<Caption>
- -------------------------------------------------------
Shares or
Principal
Amount Value
- -------------------------------------------------------
COMMON STOCKS (58.4%)
CONSUMER DISCRETIONARY (9.5%)
Harley-Davidson, Inc. 54,600 $ 3,154
Home Depot, Inc. (The) 67,600 2,585
J. C. Penney Co., Inc. 71,000 3,685
Kohl's Corp. * 33,000 1,704
Lowe's Cos., Inc. 28,900 1,650
NIKE, Inc., Cl B 40,400 3,366
Office Depot, Inc. * 26,100 579
Omnicom Group, Inc. 26,200 2,319
Staples, Inc. 39,000 1,226
Time Warner, Inc. * 87,000 1,527
Walt Disney Co. (The) 73,500 2,112
---------
23,907
---------
CONSUMER STAPLES (4.4%)
Clorox Co. (The) 50,000 3,150
Wal-Mart Stores, Inc. 76,000 3,808
Walgreen Co. 93,400 4,149
---------
11,107
---------
ENERGY (2.2%)
Anadarko Petroleum Corp. 15,000 1,142
Exxon Mobil Corp. 73,500 4,380
---------
5,522
---------
FINANCIALS (12.9%)
Ambac Financial Group,
Inc. 39,000 2,915
American Express Co. 83,700 4,301
American International
Group, Inc. 20,000 1,108
Chubb Corp. (The) 45,500 3,607
Citigroup, Inc. 31,500 1,416
Comerica, Inc. 31,000 1,707
Freddie Mac 44,200 2,793
Goldman Sachs Group, Inc.
(The) 31,400 3,454
JPMorgan Chase & Co. 92,800 3,211
MGIC Investment Corp. 44,000 2,713
SLM Corp. 66,700 3,324
Wells Fargo & Co. 29,200 1,746
---------
32,295
---------
HEALTH CARE (6.6%)
Becton, Dickinson & Co. 39,500 2,308
Biomet, Inc. 52,400 1,902
Boston Scientific Corp. * 79,500 2,329
Johnson & Johnson 25,000 1,679
Medtronic, Inc. 24,000 1,223
</Table>
<Table>
<Caption>
- -------------------------------------------------------
Shares or
Principal
Amount Value
- -------------------------------------------------------
HEALTH CARE--CONTINUED
St. Jude Medical, Inc. * 81,400 $ 2,929
Stryker Corp. 65,000 2,900
Zimmer Holdings, Inc. * 15,700 1,222
---------
16,492
---------
INDUSTRIALS (8.4%)
Boeing Co. (The) 38,800 2,268
Danaher Corp. (e) 45,200 2,414
Emerson Electric Co. 41,500 2,695
General Electric Co. 119,500 4,309
Illinois Tool Works, Inc. 13,000 1,164
L-3 Communications
Holdings, Inc. 32,200 2,287
Northrop Grumman Corp. 50,800 2,742
Raytheon Co. 79,500 3,077
---------
20,956
---------
INFORMATION TECHNOLOGY (13.6%)
Amdocs Ltd. * 56,000 1,590
Automatic Data Processing,
Inc. 63,300 2,845
Avaya, Inc. * 129,200 1,509
CDW Corp. 24,300 1,377
CheckFree Corp. * 23,000 937
Cisco Systems, Inc. * 74,000 1,324
Computer Associates
International, Inc. 34 1
Computer Sciences Corp. * 21,100 967
EMC Corp. * 163,500 2,014
First Data Corp. 22,900 900
Hewlett-Packard Co. 79,300 1,740
Maxim Integrated Products,
Inc. 36,000 1,471
Microsoft Corp. 135,400 3,274
NCR Corp. 96,000 3,240
Nokia Corp. ADR 158,700 2,449
Oracle Corp. * 174,000 2,172
Scientific-Atlanta, Inc. 64,700 1,826
Texas Instruments, Inc. 103,600 2,641
VeriSign, Inc. * 71,200 2,043
---------
34,320
---------
MATERIALS (0.8%)
Air Products & Chemicals,
Inc. 29,900 1,892
---------
Total Common Stocks (Cost
$135,401) 146,491
---------
</Table>
41
<Table>
<Caption>
- -------------------------------------------------------
Shares or
Principal
Amount Value
- -------------------------------------------------------
CORPORATE BONDS (8.0%)
AIRLINES (0.2%)
Southwest Airlines Co.,
5.125%, 03/01/17 $ 555 $ 521
---------
AUTO MANUFACTURERS (0.5%)
Daimler Chrysler NA
Holdings, 8.500%,
01/18/31 295 356
Ford Motor Co., 7.450%,
07/16/31 (e) 1,115 1,009
---------
1,365
---------
BANKS (0.5%)
Bank of America Corp.,
7.400%, 01/15/11 795 896
HSBC Holdings PLC, 7.625%,
05/17/32 (d) 300 375
---------
1,271
---------
BUILDING MATERIALS (0.2%)
American Standard Cos.,
Inc., 7.625%, 02/15/10 360 401
---------
COMPUTERS (0.1%)
NCR Corp., 7.125%, 06/15/09 130 140
---------
DIVERSIFIED FINANCIAL SERVICES (2.1%)
CIT Group, Inc., 5.125%,
09/30/14 485 479
Citigroup, Inc., 5.125%,
05/05/14 305 305
Citigroup, Inc., 5.875%,
02/22/33 310 314
Fund American Cos., Inc.,
5.875%, 05/15/13 850 863
Goldman Sachs Group, Inc.
(The), 3.875%, 01/15/09 240 234
Goldman Sachs Group, Inc.
(The), 4.750%, 07/15/13 580 558
J.P. Morgan Chase & Co.,
6.625%, 03/15/12 795 868
John Deere Capital Corp.,
3.900%, 01/15/08 140 138
MBNA Corp., 6.125%,
03/01/13 350 369
MBNA Corp., Ser B, 7.500%,
03/15/12 240 271
Merrill Lynch & Co., Inc.,
3.700%, 04/21/08 110 108
</Table>
<Table>
<Caption>
- -------------------------------------------------------
Shares or
Principal
Amount Value
- -------------------------------------------------------
DIVERSIFIED FINANCIAL SERVICES--CONTINUED
Merrill Lynch & Co., Inc.,
Ser C, 5.000%, 01/15/15 $ 295 $ 286
Morgan Stanley, 5.300%,
03/01/13 440 442
---------
5,235
---------
ELECTRIC (0.4%)
Dominion Resources, Inc.,
Ser E, 6.750%, 12/15/32 160 174
Entergy Gulf States, Inc.,
4.875%, 11/01/11,
Callable 11/01/06 @ 100 235 231
Oncor Electric Delivery,
7.000%, 05/01/32 140 161
Pacific Gas & Electric Co.,
6.050%, 03/01/34 500 514
---------
1,080
---------
ENTERTAINMENT (0.2%)
GTECH Holdings Corp.,
4.750%, 10/15/10 270 266
Harrahs Operating Co.,
Inc., 5.375%, 12/15/13 175 173
---------
439
---------
FOREST & PAPER PRODUCTS (0.1%)
Weyerhaeuser Co., 7.375%,
03/15/32 120 140
---------
HOME BUILDERS (0.2%)
Lennar Corp., 5.950%,
03/01/13 205 211
Pulte Homes, Inc., 4.875%,
07/15/09 220 217
---------
428
---------
INSURANCE (0.5%)
MetLife, Inc., 5.250%,
12/01/06 160 163
Monumental Global Funding,
5.200%, 01/30/07 (d) 585 596
Prudential Financial, Inc.,
3.750%, 05/01/08 145 142
Prudential Financial, Inc.,
Ser B, 5.100%, 09/20/14 230 228
---------
1,129
---------
</Table>
42
SCHEDULE OF PORTFOLIO INVESTMENTS
STI CLASSIC EQUITY FUNDS March 31, 2005 (Amounts in thousands, except shares)
BALANCED FUND -- CONCLUDED
<Table>
<Caption>
- -------------------------------------------------------
Shares or
Principal
Amount Value
- -------------------------------------------------------
INVESTMENT COMPANIES (0.1%)
Credit Suisse First Boston
USA, Inc., 6.500%,
01/15/12 $ 275 $ 298
---------
LEISURE TIME (0.1%)
Harley-Davidson, Inc.,
3.625%, 12/15/08 (d) 265 259
---------
LODGING (0.0%)
Marriot International,
Inc., Ser C, 7.875%,
09/15/09 90 101
---------
MEDIA (0.8%)
Comcast Cable
Communications, Inc.,
7.125%, 06/15/13 550 612
Comcast Corp, 7.050%,
03/15/33 70 78
Cox Communications, Inc.,
4.625%, 06/01/13 260 242
News America Holdings,
Inc., 9.250%, 02/01/13 240 300
News America, Inc., 6.200%,
12/15/34 (d) 145 143
Time Warner, Inc., 7.625%,
04/15/31 475 558
---------
1,933
---------
MINING (0.1%)
Codelco, Inc., 5.500%,
10/15/13 (d) 325 328
---------
MISCELLANEOUS MANUFACTURER (0.5%)
General Electric Co.,
5.000%, 02/01/13 1,250 1,248
---------
OIL & GAS (0.3%)
Devon Financing Corp. ULC,
7.875%, 09/30/31 170 212
Enterprise Products
Operating L.P., Ser B,
6.875%, 03/01/33 215 225
Motiva Enterprises LLC,
5.200%, 09/15/12 (d) 200 203
Pennzoil Co., 10.250%,
11/01/05 60 62
---------
702
---------
PACKAGING & CONTAINERS (0.1%)
Packaging Corp. of America,
5.750%, 08/01/13 185 183
---------
</Table>
<Table>
<Caption>
- -------------------------------------------------------
Shares or
Principal
Amount Value
- -------------------------------------------------------
PERSONAL CREDIT INSTITUTIONS (0.1%)
Capital One Financial
Corp., 4.800%, 02/21/12 $ 320 $ 311
---------
PIPELINES (0.3%)
CenterPoint Energy
Resources Corp., Ser B,
7.875%, 04/01/13 340 394
K N Capital Trust III,
7.630%, 04/15/28 280 322
K N Energy, Inc., 7.250%,
03/01/28 120 136
---------
852
---------
REITS (0.1%)
Simon Property Group LP,
6.375%, 11/15/07 155 161
---------
RETAIL (0.0%)
Federated Department
Stores, Inc., 6.900%,
04/01/29 115 123
---------
SAVINGS & LOAN (0.1%)
Golden West Financial
Corp., 4.125%, 08/15/07 325 324
---------
TELECOMMUNICATIONS (0.4%)
SBC Communications, Inc.,
5.625%, 06/15/16 (e) 45 45
SBC Communications, Inc.,
6.450%, 06/15/34 120 125
Sprint Capital Corp.,
8.750%, 03/15/32 505 655
TELUS Corp., 8.000%,
06/01/11 220 255
---------
1,080
---------
Total Corporate Bonds (Cost
$19,957) 20,052
---------
U.S. GOVERNMENT AGENCIES (0.7%)
GOVERNMENT NATIONAL MORTGAGE ASSOCIATION (0.7%)
8.500%, 04/15/31 406 442
8.000%, 08/15/31 524 565
8.000%, 09/15/31 600 646
---------
Total U.S. Government
Agencies (Cost $1,607) 1,653
---------
U.S. TREASURY OBLIGATIONS (30.8%)
U.S. TREASURY BONDS (2.1%)
5.375%, 02/15/31 (e) 4,825 5,259
---------
</Table>
43
<Table>
<Caption>
- -------------------------------------------------------
Shares or
Principal
Amount Value
- -------------------------------------------------------
U.S. TREASURY INFLATION PROTECTED NOTES/BONDS (4.6%)
1.875%, 07/15/13 $ 7,579 $ 7,711
3.875%, 04/15/29 2,813 3,869
---------
11,580
---------
U.S. TREASURY NOTES (24.1%)
3.500%, 11/15/06 (e) 17,935 17,880
3.375%, 02/28/07 (e) 7,055 7,003
3.125%, 05/15/07 (e) 11,610 11,446
3.125%, 04/15/09 (e) 2,760 2,662
6.000%, 08/15/09 (e) 10,070 10,821
4.000%, 03/15/10 (e) 5,225 5,184
4.875%, 02/15/12 (e) 1,230 1,270
3.875%, 02/15/13 (e) 4,055 3,914
---------
60,180
---------
Total U.S. Treasury
Obligations (Cost $77,049) 77,019
---------
YANKEE BONDS (0.7%)
MEDIA (0.1%)
British Sky Broadcasting
Group, 6.875%, 02/23/09 305 327
---------
SOVEREIGN (0.4%)
United Mexican States,
8.300%, 08/15/31 785 899
---------
TELECOMMUNICATIONS (0.2%)
Deutsche Telekom
International Finance,
9.250%, 06/01/32 160 230
Verizon Global Funding
Corp., 7.750%, 12/01/30 190 230
---------
460
---------
Total Yankee Bonds (Cost
$1,609) 1,686
---------
</Table>
<Table>
<Caption>
- -------------------------------------------------------
Shares or
Principal
Amount Value
- -------------------------------------------------------
WARRANTS (0.0%)
INFORMATION TECHNOLOGY (0.0%)
Lucent Technologies, Inc. 1,199 $ 1
---------
Total Warrants (Cost $0) 1
---------
SHORT-TERM INVESTMENT (27.4%)
CSFB Enhanced Liquidity
Portfolio (f) 68,636,202 68,636
---------
Total Short-Term Investment
(Cost $68,636) 68,636
---------
REPURCHASE AGREEMENT (1.6%)
Deutsche Bank, 2.650%,
dated 03/31/05, to be
repurchased on 04/01/05,
repurchase price
$4,051,125
(collateralized by U.S.
Treasury Obligations, DN,
due 02/15/20-02/15/23;
total market value
$4,131,931) $ 4,051 4,051
---------
Total Repurchase Agreement
(Cost $4,051) 4,051
---------
Total Investments (Cost
$308,310) (a) -- 127.6% 319,589
Liabilities in excess of
other assets -- (27.6)% (69,190)
---------
Net Assets -- 100.0% $ 250,399
=========
</Table>
See notes to schedules of portfolio investments and notes to financial
statements.
44
SCHEDULE OF PORTFOLIO INVESTMENTS
STI CLASSIC EQUITY FUNDS March 31, 2005 (Amounts in thousands, except shares)
CAPITAL APPRECIATION FUND
<Table>
<Caption>
- -------------------------------------------------------
Shares or
Principal
Amount Value
- -------------------------------------------------------
COMMON STOCKS (99.2%)
CONSUMER DISCRETIONARY (17.3%)
Harley-Davidson, Inc. 614,000 $ 35,465
Home Depot, Inc. (The) 867,000 33,154
J. C. Penney Co., Inc. 552,500 28,686
Kohl's Corp. * (e) 360,000 18,587
Lowe's Cos., Inc. (e) 314,000 17,926
NIKE, Inc., Cl B (e) 455,300 37,931
Office Depot, Inc. * 375,100 8,320
Omnicom Group, Inc. 284,800 25,210
Staples, Inc. (e) 500,000 15,715
Time Warner, Inc. * (e) 2,000,000 35,100
Walt Disney Co. (The) 1,290,000 37,062
----------
293,156
----------
CONSUMER STAPLES (6.4%)
Clorox Co. (The) (e) 544,000 34,267
Wal-Mart Stores, Inc. 639,000 32,020
Walgreen Co. (e) 969,500 43,065
----------
109,352
----------
ENERGY (3.7%)
Anadarko Petroleum Corp.
(e) 177,000 13,470
Exxon Mobil Corp. 820,000 48,872
----------
62,342
----------
FINANCIALS (20.3%)
Ambac Financial Group,
Inc. (e) 372,000 27,807
American Express Co. 916,000 47,055
American International
Group, Inc. 340,000 18,839
Chubb Corp. (The) (e) 503,500 39,912
Citigroup, Inc. 481,000 21,616
Comerica, Inc. 362,000 19,939
Freddie Mac (e) 494,000 31,221
Goldman Sachs Group, Inc.
(The) 344,500 37,892
JPMorgan Chase & Co. (e) 518,900 17,954
MGIC Investment Corp. 500,000 30,835
SLM Corp. 677,000 33,742
Wells Fargo & Co. 284,000 16,983
----------
343,795
----------
HEALTH CARE (10.8%)
Becton, Dickinson & Co. 433,300 25,313
Biomet, Inc. (e) 567,000 20,582
Boston Scientific Corp. * 866,900 25,392
</Table>
<Table>
<Caption>
- -------------------------------------------------------
Shares or
Principal
Amount Value
- -------------------------------------------------------
HEALTH CARE--CONTINUED
Johnson & Johnson 287,600 $ 19,315
Medtronic, Inc. 260,000 13,247
St. Jude Medical, Inc. * 934,800 33,654
Stryker Corp. 709,000 31,628
Zimmer Holdings, Inc. *
(e) 176,500 13,733
----------
182,864
----------
INDUSTRIALS (14.9%)
Boeing Co. (The) 685,000 40,045
Danaher Corp. (e) 496,000 26,491
Emerson Electric Co. 444,800 28,881
General Electric Co. 1,496,000 53,946
Illinois Tool Works,
Inc. 150,000 13,430
L-3 Communications
Holdings, Inc. 352,000 24,999
Northrop Grumman Corp. 581,500 31,389
Raytheon Co. (e) 870,000 33,669
----------
252,850
----------
INFORMATION TECHNOLOGY (25.0%)
Amdocs Ltd. * 820,000 23,288
Automatic Data
Processing, Inc. 688,800 30,962
Avaya, Inc. * 1,800,000 21,024
CDW Corp. (e) 263,500 14,935
CheckFree Corp. * (e) 435,000 17,731
Cisco Systems, Inc. * 870,000 15,564
Computer Associates
International, Inc. 290 8
Computer Sciences Corp. *
(e) 264,300 12,118
EMC Corp. * 2,866,000 35,308
First Data Corp. 405,000 15,921
Hewlett-Packard Co. 800,000 17,552
Maxim Integrated
Products, Inc. 400,000 16,348
Microsoft Corp. 1,383,000 33,427
NCR Corp. 1,000,000 33,739
Nokia Corp. ADR 1,818,000 28,052
Oracle Corp. * 2,216,000 27,656
Scientific-Atlanta, Inc. 740,000 20,883
Texas Instruments, Inc.
(e) 1,125,000 28,676
VeriSign, Inc. * (e) 1,038,500 29,805
----------
422,997
----------
</Table>
45
<Table>
<Caption>
- -------------------------------------------------------
Shares or
Principal
Amount Value
- -------------------------------------------------------
MATERIALS (0.8%)
Air Products & Chemicals,
Inc. 218,500 $ 13,829
----------
Total Common Stocks (Cost
$1,566,866) 1,681,185
----------
WARRANTS (0.0%)
INFORMATION TECHNOLOGY (0.0%)
Lucent Technologies,
Inc. 12,166 8
----------
Total Warrants (Cost $0) 8
----------
SHORT-TERM INVESTMENTS (8.2%)
CSFB Enhanced Liquidity
Portfolio (f) 139,174,134 139,174
----------
Total Short-Term
Investments (Cost
$139,174) 139,174
----------
REPURCHASE AGREEMENTS (1.7%)
Bear Stearns & Co., Inc.,
2.830%, dated 03/31/05,
to be repurchased on
04/01/05, repurchase
price $29,588,145
(collateralized by U.S.
Government Agencies DN,
due 07/01/18-04/01/35;
total market value
$30,178,581) $ 29,586 29,586
----------
Total Repurchase Agreements
(Cost $29,586) 29,586
----------
Total Investments (Cost
$1,735,626) (a) -- 109.1% 1,849,953
Liabilities in excess of
other assets -- (9.1)% (154,059)
----------
Net Assets -- 100.0% $1,695,894
==========
</Table>
See notes to schedules of portfolio investments and notes to financial
statements.
46
SCHEDULE OF PORTFOLIO INVESTMENTS
STI CLASSIC EQUITY FUNDS March 31, 2005 (Amounts in thousands, except shares)
EMERGING GROWTH STOCK FUND
<Table>
<Caption>
- ----------------------------------------------------------
Shares or
Principal
Amount Value
- ----------------------------------------------------------
COMMON STOCKS (96.7%)
CONSUMER DISCRETIONARY (14.2%)
Blue Nile, Inc. * 17,600 $ 486
Coach, Inc. * 8,000 453
Dick's Sporting Goods, Inc. * 11,600 426
Getty Images, Inc. * 3,900 277
Overstock.com, Inc. * 6,300 271
PETCO Animal Supplies, Inc. * 4,200 155
Starbucks Corp. * 5,800 300
True Religion Apparel, Inc. * 6,500 80
Urban Outfitters, Inc. * 10,000 480
-------
2,928
-------
CONSUMER STAPLES (3.5%)
Whole Foods Market, Inc. 7,000 715
-------
FINANCIALS (11.6%)
Affiliated Managers Group, Inc.
* 6,500 403
BlackRock, Inc., Cl A 10,600 794
Calamos Asset Management, Inc.,
Cl A 14,100 380
Investors Financial Services
Corp. 16,700 817
-------
2,394
-------
HEALTH CARE (18.8%)
Biosite, Inc. * 8,300 432
Cephalon, Inc. * 11,600 543
Kyphon, Inc. * 12,800 322
Martek Biosciences Corp. * 7,400 431
Medicis Pharmaceutical Corp., Cl
A 19,000 570
Neurocrine Biosciences, Inc. * 6,400 244
Psychiatric Solutions, Inc. * 6,000 276
Varian Medical Systems, Inc. * 11,500 394
Wright Medical Group, Inc. * 27,700 664
-------
3,876
-------
INDUSTRIALS (9.3%)
AirTran Holdings, Inc. * 48,400 438
Corporate Executive Board Co.
(The) 9,100 582
Monster Worldwide, Inc. * 7,200 202
Portfolio Recovery Associates,
Inc. * 18,100 616
Turbochef Technologies, Inc. * 4,900 73
-------
1,911
-------
</Table>
<Table>
<Caption>
- ----------------------------------------------------------
Shares or
Principal
Amount Value
- ----------------------------------------------------------
INFORMATION TECHNOLOGY (34.7%)
Adobe Systems, Inc. 7,000 $ 470
Alliance Data Systems Corp. * 12,900 521
Apple Computer, Inc. * 23,000 959
aQuantive, Inc. * 37,500 415
Broadcom Corp., Cl A * 9,500 284
CNET Networks, Inc. * 51,000 481
Cogent, Inc. * 6,000 151
Cognizant Technology Solutions
Corp., Cl A * 19,100 882
Euronet Worldwide, Inc. * 20,900 597
JAMDAT Mobile, Inc. * 14,600 252
Juniper Networks, Inc. * 22,700 501
NAVTEQ Corp. * 6,200 269
SRA International, Inc., Cl A * 8,400 506
VeriSign, Inc. * 11,400 327
ViaSat, Inc. * 18,900 353
Volterra Semiconductor Corp. * 13,900 188
-------
7,156
-------
TELECOMMUNICATION SERVICES (4.6%)
Crown Castle International Corp.
* 29,600 475
Nextel Partners, Inc., Cl A * 21,800 479
-------
954
-------
Total Common Stocks (Cost $18,208) 19,934
-------
REPURCHASE AGREEMENTS (3.8%)
Merrill Lynch & Co., Inc.,
2.820%, dated 03/31/05, to be
repurchased on 04/01/05,
repurchase price $784,792
(collateralized by U.S.
Government Agencies, 5.500%,
due 01/01/17; total market
value $801,054) $ 785 785
-------
Total Repurchase Agreements (Cost
$785) 785
-------
Total Investments (Cost $18,993)
(a) -- 100.5% 20,719
Liabilities in excess of other
assets -- (0.5)% (105)
-------
Net Assets -- 100.0% $20,614
=======
</Table>
See notes to schedules of portfolio investments and notes to financial
statements.
47
GROWTH AND INCOME FUND
<Table>
<Caption>
- -------------------------------------------------------
Shares Value
- -------------------------------------------------------
COMMON STOCKS (98.9%)
CONSUMER DISCRETIONARY (8.9%)
Advance Auto Parts, Inc.
* 400,000 $ 20,180
Gannett Co., Inc. 115,000 9,094
Jones Apparel Group,
Inc. 100,000 3,349
Kohl's Corp. * 250,000 12,908
Lowe's Cos., Inc. (e) 150,000 8,564
McDonald's Corp. (e) 40,000 1,246
Target Corp. 245,000 12,255
Viacom, Inc., Cl B (e) 660,000 22,987
Walt Disney Co. (The) (e) 400,000 11,492
----------
102,075
----------
CONSUMER STAPLES (11.3%)
Anheuser-Busch Cos., Inc.
(e) 20,000 948
Archer-Daniels-Midland
Co. 875,000 21,507
Clorox Co. (The) 250,000 15,748
Diageo PLC ADR 335,000 19,061
General Mills, Inc. 30,000 1,475
Kimberly-Clark Corp. 150,000 9,860
PepsiCo, Inc. 235,000 12,462
Sara Lee Corp. 850,000 18,835
SYSCO Corp. 50,000 1,790
Wal-Mart Stores, Inc. 375,000 18,791
Wm. Wrigley Jr. Co. 150,000 9,836
----------
130,313
----------
ENERGY (11.1%)
Anadarko Petroleum Corp.
(e) 150,000 11,415
Baker Hughes, Inc. 300,000 13,347
Burlington Resources,
Inc. (e) 200,000 10,014
ChevronTexaco Corp. (e) 250,000 14,578
ConocoPhillips (e) 145,000 15,637
Exxon Mobil Corp. 395,000 23,541
Kerr-McGee Corp. (e) 200,000 15,666
Royal Dutch Petroleum Co.
ADR 375,000 22,515
----------
126,713
----------
FINANCIALS (23.6%)
American Express Co. 35,000 1,798
American International
Group, Inc. (e) 140,000 7,757
Bank of America Corp. (e) 550,000 24,255
Berkshire Hathaway, Inc.,
Cl B * 8,500 24,275
Cincinnati Financial
Corp. 350,000 15,264
Citigroup, Inc. (e) 552,066 24,810
</Table>
<Table>
<Caption>
- -------------------------------------------------------
Shares Value
- -------------------------------------------------------
FINANCIALS--CONTINUED
Fannie Mae 200,000 $ 10,890
Fifth Third Bancorp (e) 150,000 6,447
Genworth Financial, Inc.,
Cl A 660,000 18,163
Goldman Sachs Group, Inc.
(The) (e) 100,000 10,999
Jefferson-Pilot Corp. (e) 40,000 1,962
MBNA Corp. 450,000 11,048
MGIC Investment Corp. 100,000 6,167
Morgan Stanley 175,000 10,019
New York Community
Bancorp, Inc. (e) 1,000,000 18,160
Principal Financial
Group, Inc. (e) 500,000 19,245
Prudential Financial,
Inc. (e) 240,000 13,776
State Street Corp. 350,000 15,302
U.S. Bancorp (e) 600,000 17,292
Washington Mutual, Inc. 48,500 1,916
Wells Fargo & Co. 190,000 11,362
----------
270,907
----------
HEALTH CARE (11.3%)
Abbott Laboratories 375,000 17,483
Amgen, Inc. * (e) 150,000 8,732
Bristol-Myers Squibb Co. 775,000 19,731
Eli Lilly & Co. 250,000 13,025
Express Scripts, Inc. *
(e) 100,000 8,719
Johnson & Johnson 155,000 10,410
Laboratory Corp. of
America Holdings * 20,000 964
Medtronic, Inc. 50,000 2,548
Pfizer, Inc. 880,000 23,117
Schering-Plough Corp. 65,000 1,180
WellPoint, Inc. * 178,000 22,311
Wyeth 25,000 1,055
----------
129,275
----------
INDUSTRIALS (11.0%)
Cendant Corp. 700,000 14,378
Cooper Industries Ltd.,
Cl A 212,000 15,162
Emerson Electric Co. 125,000 8,116
General Electric Co. 650,000 23,439
Honeywell International,
Inc. 400,000 14,884
Illinois Tool Works,
Inc. 75,000 6,715
Norfolk Southern Corp. 275,000 10,189
Rockwell Automation, Inc.
(e) 225,000 12,744
Textron, Inc. 205,000 15,297
</Table>
48
SCHEDULE OF PORTFOLIO INVESTMENTS
STI CLASSIC EQUITY FUNDS March 31, 2005 (Amounts in thousands, except shares)
GROWTH AND INCOME FUND -- CONCLUDED
<Table>
<Caption>
- -------------------------------------------------------
Shares Value
- -------------------------------------------------------
INDUSTRIALS--CONTINUED
United Parcel Service,
Inc., Cl B 12,000 $ 873
United Technologies
Corp. 37,000 3,761
----------
125,558
----------
INFORMATION TECHNOLOGY (10.2%)
Agilent Technologies, Inc. * 850,000 18,870
Automatic Data
Processing, Inc. 25,000 1,124
Cisco Systems, Inc. * 800,000 14,312
Diebold, Inc. 35,000 1,920
First Data Corp. 332,000 13,051
Intel Corp. 500,000 11,615
International Business
Machines Corp. 140,000 12,793
Microsoft Corp. 590,000 14,260
Nokia Corp. ADR (e) 1,200,000 18,516
Texas Instruments, Inc.
(e) 392,000 9,992
----------
116,453
----------
MATERIALS (3.7%)
E.I. du Pont de Nemours &
Co. (e) 235,000 12,041
Praxair, Inc. 275,000 13,162
Sealed Air Corp. * 25,000 1,299
Sigma-Aldrich Corp. (e) 250,000 15,312
----------
41,814
----------
TELECOMMUNICATION SERVICES (2.8%)
ALLTEL Corp. (e) 50,000 2,743
Verizon Communications,
Inc. 400,000 14,200
Vodafone Group PLC ADR
(e) 550,000 14,608
----------
31,551
----------
</Table>
<Table>
<Caption>
- -------------------------------------------------------
Shares Value
- -------------------------------------------------------
UTILITIES (5.0%)
American Electric Power
Co., Inc. (e) 400,000 $ 13,624
Edison International 430,000 14,930
Exelon Corp. (e) 300,000 13,767
Questar Corp. 125,000 7,406
SCANA Corp. 200,000 7,644
----------
57,371
----------
Total Common Stocks (Cost
$902,172) 1,132,030
----------
SHORT-TERM INVESTMENT (11.4%)
CSFB Enhanced Liquidity
Portfolio (f) 130,648,862 130,649
----------
Total Short-Term Investment
(Cost $130,649) 130,649
----------
MONEY MARKET FUNDS (2.1%)
Federated Government
Obligations Fund 3,347,005 3,347
Federated Prime Value
Obligations Fund, Cl I 20,622,718 20,623
----------
Total Money Market Funds
(Cost $23,970) 23,970
----------
Total Investments (Cost
$1,056,791) (a) -- 112.4% 1,286,649
Liabilities in excess of
other assets -- (12.4)% (142,448)
----------
Net Assets -- 100.0% $1,144,201
==========
</Table>
See notes to schedules of portfolio investments and notes to financial
statements.
49
INTERNATIONAL EQUITY FUND
<Table>
<Caption>
- -------------------------------------------------------
Shares Value
- -------------------------------------------------------
FOREIGN COMMON STOCKS (94.0%)
AUSTRALIA (4.6%)
Australia & New Zealand
Banking Group Ltd. 179,606 $ 2,863
BlueScope Steel Ltd. 369,598 2,486
Just Group Ltd. 612,100 1,339
Orica Ltd. 147,994 2,088
Qantas Airways Ltd. 1,012,333 2,778
QBE Insurance Group Ltd. 205,547 2,366
Rio Tinto Group Ltd. (e) 78,979 2,756
St. George Bank Ltd. 118,487 2,244
West Australian Newspapers
Holdings Ltd. 175,056 1,069
Westpac Banking Corp. 184,133 2,709
--------
22,698
--------
BELGIUM (0.9%)
Delhaize Group 35,730 2,448
Fortis 67,922 1,938
--------
4,386
--------
DENMARK (1.1%)
Danske Bank A/S 91,724 2,661
TDC A/S 71,864 3,028
--------
5,689
--------
FINLAND (1.7%)
Fortum Corp. (e) 140,360 2,733
Nokia Corp. 324,093 5,025
Tietoenator Oyj 23,249 795
--------
8,553
--------
FRANCE (9.3%)
Alcatel * 58,549 710
AXA 155,712 4,148
BNP Paribas 72,264 5,120
Bouygues SA 33,788 1,340
Compagnie de Saint-Gobain 30,167 1,838
France Telecom SA 90,172 2,700
Lafarge SA 32,527 3,150
Metropole Television SA 33,686 943
Pernod Ricard 11,682 1,631
PSA Peugeot Citroen SA 15,561 989
Sanofi-Aventis 43,457 3,665
Schneider Electric SA * 21,969 1,722
Societe Generale 39,689 4,124
SUEZ SA 67,940 1,829
TOTAL SA 29,039 6,796
VINCI 22,285 3,213
Vivendi Universal SA * 70,079 2,147
--------
46,065
--------
</Table>
<Table>
<Caption>
- -------------------------------------------------------
Shares Value
- -------------------------------------------------------
GERMANY (7.9%)
Adidas-Salomon AG 19,701 $ 3,130
Allianz AG 26,486 3,364
BASF AG 53,172 3,767
Bayer AG 26,657 881
Continental AG 30,624 2,370
DaimlerChrysler AG (e) 40,321 1,807
Deutsche Bank AG 29,555 2,550
Deutsche Telekom AG * 161,579 3,228
E.ON AG 52,950 4,538
Lanxess AG * 2,502 51
MAN AG 18,068 806
METRO AG 29,410 1,579
PUMA Rudolf Dassler Sport AG
(e) 4,976 1,241
SAP AG 12,351 1,982
Schering AG 49,062 3,263
Siemens AG 59,421 4,690
--------
39,247
--------
HONG KONG (2.0%)
Bank of East Asia Ltd. 361,527 1,041
BOC Hong Kong (Holdings)
Ltd. 463,000 852
Cheung Kong (Holdings) Ltd. 254,000 2,254
CNOOC Ltd. 2,421,000 1,304
Esprit Holdings Ltd. 197,000 1,345
Hutchison Whampoa Ltd. 202,700 1,722
Orient Overseas
(International) Ltd. 324,000 1,562
--------
10,080
--------
IRELAND (0.8%)
Anglo Irish Bank Corp. PLC 27,826 696
CRH PLC 77,902 2,042
Irish Life & Permanent PLC 73,140 1,299
--------
4,037
--------
ITALY (2.9%)
Banca Intesa SpA 587,870 2,988
Eni SpA 201,376 5,229
Mediaset SpA 237,101 3,412
Telecom Italia SpA 422,457 1,602
UniCredito Italiano SpA 236,486 1,389
--------
14,620
--------
JAPAN (20.0%)
Aiful Corp. When Issued 6,950 545
Aiful Corp. 13,900 1,112
Aioi Insurance Co. Ltd. 189,000 1,019
Aisin Seiki Co. Ltd. 63,900 1,454
Asahi Breweries Ltd. 175,700 2,276
</Table>
50
SCHEDULE OF PORTFOLIO INVESTMENTS
STI CLASSIC EQUITY FUNDS March 31, 2005 (Amounts in thousands, except shares)
INTERNATIONAL EQUITY FUND -- CONTINUED
<Table>
<Caption>
- -------------------------------------------------------
Shares Value
- -------------------------------------------------------
JAPAN--CONTINUED
Asahi Glass Co. Ltd. 99,000 $ 1,044
Bridgestone Corp. 62,000 1,140
Canon, Inc. 59,500 3,190
Citizen Watch Co. Ltd. 113,100 1,086
Daiichi Pharmaceutical Co.
Ltd. 100,700 2,357
Daiwa Securities Group,
Inc. 137,000 902
DENSO Corp. 52,300 1,303
East Japan Railway Co. 243 1,306
Hitachi Chemical Co. Ltd. 46,900 838
Honda Motor Co. Ltd. 35,500 1,778
Ibiden Co. Ltd. (e) 52,000 1,006
Japan Tobacco, Inc. 154 1,709
JFE Holdings, Inc. 44,300 1,236
Joyo Bank Ltd. (The) 287,000 1,545
Kaneka Corp. 81,000 895
Kansai Electric Power Co.,
Inc. (The) 1,400 28
Komatsu Ltd. 201,000 1,511
Kubota Corp. 252,000 1,345
Kuraray Co. Ltd. 111,000 991
Kyocera Corp. 15,000 1,070
Kyushu Electric Power Co.,
Inc. 59,400 1,263
Marubeni Corp. 346,000 1,110
Matsushita Electric
Industrial Co. Ltd. 108,000 1,592
Matsushita Electric Works
Ltd. 157,000 1,352
Mitsubishi Corp. 185,000 2,396
Mitsubishi Electric Corp. 240,000 1,242
Mitsubishi Estate Co. Ltd. 87,000 1,011
Mitsubishi Tokyo Financial
Group, Inc. 224 1,943
Mitsui & Co. Ltd. 225,000 2,076
Mitsui Fudosan Co. Ltd. 125,000 1,468
Mitsui O.S.K. Lines Ltd. 325,000 2,089
Mitsui Trust Holdings, Inc. 129,000 1,283
Mizuho Financial Group,
Inc. 452 2,138
Nippon Oil Corp. 259,000 1,839
Nippon Steel Corp. 412,000 1,041
Nippon Telegraph & Telephone
Corp. 367 1,606
Nippon Yusen KK 295,000 1,778
NTT DoCoMo, Inc. 991 1,664
OBIC Co. Ltd. 2,200 429
OMRON Corp. 63,100 1,377
ORIX Corp. 14,000 1,785
Resona Holdings, Inc. * 496,000 995
Ricoh Co. Ltd. 47,000 807
</Table>
<Table>
<Caption>
- -------------------------------------------------------
Shares Value
- -------------------------------------------------------
JAPAN--CONTINUED
Sankyo Co. Ltd. 36,100 $ 1,748
Sankyo Co. Ltd. (Gunma) 111,800 2,357
Seiko Epson Corp. 38,600 1,433
Sekisui Chemical Co. Ltd. 204,000 1,482
Sompo Japan Insurance, Inc. 75,000 783
Sony Corp. 49,600 1,976
Sumitomo Chemical Co. Ltd. 234,000 1,157
Sumitomo Metal Industries
Ltd. 698,000 1,257
Sumitomo Metal Mining Co.
Ltd. 128,000 964
Sumitomo Trust & Banking Co.
Ltd. (The) 276,000 1,800
Takeda Pharmaceutical Co.
Ltd. 45,600 2,174
Terumo Corp. 52,500 1,582
Toho Gas Co. Ltd. 5,000 18
Tokyo Electric Power Co.,
Inc. (The) 108,300 2,626
Tokyo Gas Co. Ltd. 326,000 1,314
Toray Industries, Inc. 326,000 1,463
Toyota Motor Corp. 139,900 5,206
West Japan Railway Co. 357 1,455
Yamada Denki Co. Ltd. 26,400 1,384
--------
99,149
--------
NETHERLANDS (4.3%)
ABN AMRO Holding NV 153,498 3,809
Akzo Nobel NV 60,717 2,772
ING Groep NV 151,022 4,562
Royal Dutch Petroleum Co. 48,095 2,876
Royal KPN NV 355,150 3,177
Royal Philips Electronics NV
(e) 151,812 4,182
--------
21,378
--------
NEW ZEALAND (0.6%)
Fletcher Building Ltd. 628,324 2,971
--------
NORWAY (1.5%)
Orkla ASA 94,322 3,453
Statoil ASA 108,511 1,849
Telenor ASA 215,399 1,937
--------
7,239
--------
SINGAPORE (0.4%)
United Overseas Bank Ltd. 256,000 2,233
--------
SPAIN (3.4%)
Altadis SA 10,386 425
Banco Santander Central
Hispano SA 291,073 3,543
Endesa SA 75,556 1,699
</Table>
51
<Table>
<Caption>
- -------------------------------------------------------
Shares Value
- -------------------------------------------------------
SPAIN--CONTINUED
Gestevision Telecinco SA 9,846 $ 229
Repsol YPF SA 168,426 4,459
Sociedad General de Aguas de
Barcelona SA, Cl A 57,909 1,253
Telefonica SA 260,122 4,533
Union Fenosa SA 32,320 960
--------
17,101
--------
SWEDEN (3.0%)
Autoliv, Inc. 23,781 1,135
Nordea Bank AB 349,929 3,538
Sandvik AB 46,411 1,930
Svenska Handelsbanken AB, Cl
A 99,834 2,358
Telefonaktiebolaget LM
Ericsson (e) 1,431,410 4,027
Volvo AB, Cl B (e) 47,671 2,107
--------
15,095
--------
SWITZERLAND (5.8%)
Credit Suisse Group * 99,063 4,252
Nestle SA 16,658 4,556
Novartis AG 163,918 7,645
Roche Holding Ltd. 25,247 2,705
UBS AG 69,197 5,842
Zurich Financial Services 22,053 3,869
--------
28,869
--------
UNITED KINGDOM (23.8%)
"Shell" Transport & Trading
Co. PLC (The) 599,508 5,380
Alliance UniChem PLC 182,634 2,669
Anglo Irish Bank Corp. PLC 88,416 2,215
AstraZeneca PLC 124,586 4,910
Aviva PLC 355,620 4,266
AWG PLC 91,259 1,428
Balfour Beatty PLC 372,982 2,202
Barclays PLC 578,545 5,913
BHP Billiton PLC 378,001 5,078
BP PLC 1,262,079 13,079
BPB PLC 315,018 2,955
Bradford & Bingley PLC 497,200 2,889
British American Tobacco PLC 133,918 2,361
</Table>
<Table>
<Caption>
- -------------------------------------------------------
Shares Value
- -------------------------------------------------------
UNITED KINGDOM--CONTINUED
BT Group PLC 788,941 $ 3,063
Burberry Group PLC 204,723 1,584
Corus Group PLC * 1,619,392 1,652
CRH PLC 20,558 540
George Wimpey PLC 306,967 2,552
GlaxoSmithKline PLC 243,187 5,573
HBOS PLC 424,502 6,617
Hilton Group PLC 439,453 2,499
HMV Group PLC 306,341 1,448
HSBC Holdings PLC 424,905 6,719
Irish Life & Permanent PLC 3,267 58
Kesa Electricals PLC 302,145 1,725
Lloyds TSB Group PLC 218,900 1,977
O2 PLC * 1,020,345 2,299
Pilkington PLC 1,019,157 2,282
Royal Bank of Scotland Group
PLC (The) 62,372 1,984
SABMiller PLC 114,227 1,788
Scottish Power PLC 384,634 2,972
Tesco PLC 783,370 4,684
Vodafone Group PLC 3,008,197 7,985
Whitbread Group PLC 152,888 2,691
--------
118,037
--------
Total Foreign Common Stocks
(Cost $376,009) 467,447
--------
SHORT-TERM INVESTMENTS (7.5%)
Brown Brothers Harriman &
Co., Cayman Islands Cash
Sweep 17,408,616 17,409
CSFB Enhanced Liquidity
Portfolio (f) 19,959,169 19,959
--------
Total Short-Term Investments
(Cost $37,368) 37,368
--------
Total Investments (Cost
$413,377) (a) -- 101.5% 504,815
Liabilities in excess of other
assets -- (1.5)% (7,342)
--------
Net Assets -- 100.0% $497,473
========
</Table>
52
SCHEDULE OF PORTFOLIO INVESTMENTS
STI CLASSIC EQUITY FUNDS March 31, 2005 (Amounts in thousands, except shares)
INTERNATIONAL EQUITY FUND -- CONCLUDED
The investment concentrations for the International Equity Fund as a percentage
of net assets, by industry, as of March 31, 2005, were as follows (unaudited):
<Table>
Cash Equivalents 7.5%
Consumer Discretionary 11.7
Consumer Staples 5.6
Energy 8.6
Financials 25.9
Health Care 7.8
Industrials 9.8
Information Technology 4.6
Materials 7.7
Telecommunication Services 7.7
Utilities 4.6
</Table>
See notes to schedules of portfolio investments and notes to financial
statements.
53
SCHEDULE OF PORTFOLIO INVESTMENTS
STI CLASSIC EQUITY FUNDS March 31, 2005 (Amounts in thousands, except shares)
INTERNATIONAL EQUITY INDEX FUND
<Table>
<Caption>
- -------------------------------------------------------
Shares Value
- -------------------------------------------------------
COMMON STOCK (0.0%)
UNITED STATES (0.0%)
Ship Finance International 2,332 $ 47
--------
Total Common Stock (Cost $20) 47
--------
FOREIGN COMMON STOCKS (93.7%)
AUSTRALIA (3.1%)
Alumina Ltd. 49,608 226
Amcor Ltd. 36,522 202
AMP Ltd. 71,784 393
Australia & New Zealand
Banking Group Ltd. 65,369 1,042
Australian Gas Light Co. 25,523 280
BHP Billiton Ltd. 130,010 1,795
BlueScope Steel Ltd. 37,899 255
Boral Ltd. 33,397 157
Brambles Industries Ltd. 41,542 255
Coca-Cola Amatil Ltd. 27,721 184
Coles Myer Ltd. 48,765 355
Commonwealth Bank of
Australia 45,937 1,241
CSL Ltd. 8,250 218
CSR Ltd. 74,623 142
Foster's Group Ltd. 78,106 310
General Property Trust 93,202 256
Insurance Australia Group
Ltd. 64,110 314
John Fairfax Holdings Ltd. 58,658 190
Lend Lease Corp. Ltd. 19,354 189
Macquarie Bank Ltd. 9,246 343
Macquarie Infrastructure
Group 91,534 255
Mayne Group Ltd. 40,402 121
Mirvac Group Ltd. 71,618 244
National Australia Bank
Ltd. 56,419 1,236
Newcrest Mining Ltd. 12,679 171
Orica Ltd. 12,298 174
Origin Energy Ltd. 49,581 273
QBE Insurance Group Ltd. 30,483 351
Rinker Group Ltd. 35,539 297
Rio Tinto Group Ltd. (e) 10,872 379
Santos Ltd. 40,965 285
Southcorp Ltd. 39,418 129
Stockland Trust Group 56,796 256
Suncorp-Metway Ltd. 27,941 420
TABCORP Holdings Ltd. 25,377 330
Telstra Corp. Ltd. 70,085 276
Wesfarmers Ltd. 14,024 431
Westfield Group 52,915 662
Westpac Banking Corp. 63,110 928
WMC Resources Ltd. 47,701 294
</Table>
<Table>
<Caption>
- -------------------------------------------------------
Shares Value
- -------------------------------------------------------
AUSTRALIA--CONTINUED
Woodside Petroleum Ltd. 20,895 $ 393
Woolworths Ltd. 38,918 483
--------
16,735
--------
AUSTRIA (1.9%)
Bank Austria AG 10,499 1,034
BOHLER-UDDEHOLM AG 2,779 379
Erste Bank der
oesterreichischen
Sparkassen AG 33,532 1,754
Flughafen Wien AG 3,897 262
Immofinanz Immobilien
Anlagen AG * 39,210 357
Mayr Melnhof Karton AG 1,254 199
OMV AG 4,900 1,557
RHI AG * 6,005 186
Telekom Austria AG 110,310 2,160
VA Technologie AG * (e) 3,525 288
Verbund AG 1,907 433
voestalpine AG 7,793 602
Wienerberger AG 18,036 821
--------
10,032
--------
BELGIUM (2.2%)
Agfa-Gevaert NV 8,894 311
Barco NV 1,431 116
Belgacom SA * 13,713 567
Delhaize Group 6,061 415
Dexia Group 55,849 1,329
Electrabel SA 2,219 996
Fortis 103,877 2,961
Groep Colruyt 1,675 260
Groupe Bruxelles Lambert SA 6,093 556
InBev 14,561 510
KBC Bank & Insurance Holding
Co. NV 18,031 1,521
Mobistar SA * 2,521 221
NV Bekaert SA 1,909 160
NV Umicore SA 2,848 289
Omega Pharma NV 2,117 109
SA D'Ieteren NV 503 118
Solvay SA 5,372 640
UCB SA 7,769 376
--------
11,455
--------
DENMARK (1.3%)
A.P. Moller-Maersk A/S 101 940
Carlsberg A/S 3,300 164
Coloplast A/S, Cl B 3,444 179
</Table>
54
SCHEDULE OF PORTFOLIO INVESTMENTS
STI CLASSIC EQUITY FUNDS March 31, 2005 (Amounts in thousands, except shares)
INTERNATIONAL EQUITY INDEX FUND -- CONTINUED
<Table>
<Caption>
- -------------------------------------------------------
Shares Value
- -------------------------------------------------------
DENMARK--CONTINUED
Danisco A/S 4,959 $ 336
Danske Bank A/S 42,168 1,223
DSV A/S 2,500 191
East Asiatic Co. A/S 2,700 153
FLS Industries A/S * 4,200 77
GN Store Nord A/S 24,300 279
H. Lundbeck A/S (e) 7,100 172
ISS A/S 4,978 404
Novo Nordisk A/S, Cl B 23,487 1,308
Novozymes A/S, Cl B 5,670 278
TDC A/S 17,200 725
Topdanmark A/S * 2,300 171
Vestas Wind Systems A/S * 17,838 258
William Demant Holding * 2,957 148
--------
7,006
--------
FINLAND (0.9%)
Fortum Corp. (e) 16,213 316
Kone Oyj, Cl B 2,112 164
Nokia Corp. 185,050 2,869
Orion Corp., Cl B 6,300 97
Sampo PLC, Cl A 21,352 310
Stora Enso Oyj (e) 27,506 386
Tietoenator Oyj 4,509 154
UPM-Kymmene Corp. (e) 23,200 514
--------
4,810
--------
FRANCE (9.9%)
Accor 13,206 646
Air France 8,402 151
Alcatel * 77,238 937
ALSTOM * 287,293 246
Atos Origin SA * 4,103 277
Autoroutes du Sud de la
France 5,875 298
AXA 88,414 2,355
BNP Paribas 50,091 3,549
Bouygues SA 11,935 473
Capgemini * 7,871 274
Carrefour SA 36,212 1,922
Casino Guichard-Perrachon SA 2,340 197
CNP Assurances SA 2,169 154
Compagnie de Saint-Gobain 18,363 1,119
Compagnie Generale des
Etablissements Michelin 8,836 581
Credit Agricole SA 41,585 1,131
Dassault Systemes SA 3,616 171
Essilor International SA 6,505 470
Euronext Paris SA 7,701 274
</Table>
<Table>
<Caption>
- -------------------------------------------------------
Shares Value
- -------------------------------------------------------
FRANCE--CONTINUED
European Aeronautic Defence
& Space Co. Eads NV 16,187 $ 484
France Telecom SA 94,484 2,830
Gecina SA 2,620 299
Groupe Danone 14,201 1,413
Hermes International 722 145
Imerys 2,182 165
Klepierre 2,466 222
L'Air Liquide SA 1,089 200
L'Air Liquide SA (Loyalty
Bonus Shares) * (d) 3,710 683
L'Air Liquide SA, Registered
Shares 1,693 311
L'Oreal SA 19,497 1,561
Lafarge SA 9,118 883
Lafarge SA (Loyalty Shares)
* (d) 997 97
Lagardere SCA 7,697 583
LVMH Moet Hennessy Louis
Vuitton SA 14,412 1,078
Pernod Ricard 3,414 477
Pinault-Printemps-Redoute SA 4,068 435
PSA Peugeot Citroen SA 10,553 671
Publicis Groupe SA 8,135 250
Renault SA 11,220 1,002
Sagem SA 13,878 312
Sanofi-Aventis 61,845 5,215
Schneider Electric SA * 13,294 1,042
Societe BIC 3,126 177
Societe Generale 20,922 2,174
Societe Television Francaise
1 7,461 236
Sodexho Alliance SA 6,529 218
SUEZ SA 51,504 1,386
Technip 1,471 246
Thales 5,361 224
Thomson 14,849 400
TOTAL SA 34,612 8,098
Unibail Holding 2,952 350
Valeo 4,914 219
Veolia Environnement SA 20,426 725
VINCI 4,551 656
Vivendi Universal SA * 64,911 1,989
--------
52,681
--------
GERMANY (13.6%)
Adidas-Salomon AG 5,379 855
Allianz AG 37,678 4,786
ALTANA AG 8,372 531
</Table>
55
<Table>
<Caption>
- -------------------------------------------------------
Shares Value
- -------------------------------------------------------
GERMANY--CONTINUED
BASF AG 62,287 $ 4,413
Bayer AG 80,041 2,646
Bayerische Hypo- und
Vereinsbank AG * 79,045 1,932
Beiersdorf AG 2,199 246
Celesio AG 4,318 352
Commerzbank AG * 55,244 1,198
Continental AG 16,385 1,268
DaimlerChrysler AG (e) 105,482 4,727
Deutsche Bank AG 60,185 5,193
Deutsche Boerse AG 12,824 965
Deutsche Lufthansa AG * 29,749 429
Deutsche Post AG 62,228 1,515
Deutsche Telekom AG * (e) 333,388 6,660
Douglas Holding AG 5,621 205
E.ON AG 76,458 6,552
EPCOS AG * 7,342 101
Fresenius Medical Care AG 3,245 187
Heidelberger Druckmaschinen
AG 7,123 448
Hypo Real Estate Holding AG
* 15,152 626
Infineon Technologies AG * 78,399 750
Karstadt Quelle AG (e) 9,207 93
Lanxess AG * 7,514 154
Linde AG 9,884 679
MAN AG 18,394 820
Merck KGaA (e) 6,116 440
METRO AG 16,747 899
MLP AG 8,636 126
Muenchener
Rueckversicherungs AG 22,558 2,711
PUMA Rudolf Dassler Sport AG
(e) 1,974 492
RWE AG 52,312 3,164
SAP AG 25,156 4,037
Schering AG 20,513 1,364
Siemens AG 97,666 7,706
Suedzucker AG 7,554 152
ThyssenKrupp AG 38,418 793
TUI AG 20,424 538
Volkswagen AG 27,830 1,325
--------
72,078
--------
GREECE (1.1%)
Alpha Bank SA 23,530 795
Coca-Cola HBC 13,560 341
Cosmote Mobile
Telecommunications SA 12,870 227
EFG Eurobank Ergasias SA 21,800 671
</Table>
<Table>
<Caption>
- -------------------------------------------------------
Shares Value
- -------------------------------------------------------
GREECE--CONTINUED
Emporiki Bank of Greece SA 6,780 $ 179
Hellenic Duty Free Shops SA 3,540 57
Hellenic Petroleum SA 18,070 181
Hellenic Technodomiki Tev SA 19,480 89
Hellenic Telecommunications
Organization SA 28,260 499
Intracom SA 18,580 93
National Bank of Greece SA 31,264 1,058
OPAP SA 18,670 544
Panafon SA * 23,800 170
Piraeus Bank SA 21,825 396
Public Power Corp. SA 12,340 356
Technical Olympic SA 14,320 88
Titan Cement Co. SA 6,510 216
Viohalco SA 14,050 112
--------
6,072
--------
HONG KONG (0.9%)
Bank of East Asia Ltd. 89,954 259
BOC Hong Kong (Holdings)
Ltd. 165,000 304
Cheung Kong (Holdings) Ltd. 63,000 559
CLP Holdings Ltd. 61,100 348
Esprit Holdings Ltd. 35,500 242
Hang Seng Bank Ltd. 24,400 324
Henderson Land Development
Co. Ltd. 50,000 222
Hong Kong & China Gas Co.
Ltd. (The) 143,237 282
Hongkong Electric Holdings
Ltd. 50,500 225
Hutchison Telecommunications
International Ltd. * 73,827 71
Hutchison Whampoa Ltd. 82,080 697
Johnson Electric Holdings
Ltd. 100,000 90
Li & Fung Ltd. 96,000 175
PCCW Ltd. 167,326 94
Sun Hung Kai Properties
Ltd. 54,600 495
Swire Pacific Ltd. 40,000 317
Wharf (Holdings) Ltd. (The) 69,000 218
--------
4,922
--------
IRELAND (1.0%)
Allied Irish Banks PLC 65,640 1,375
Bank of Ireland 72,659 1,144
Bank of Ireland 12,947 298
</Table>
56
SCHEDULE OF PORTFOLIO INVESTMENTS
STI CLASSIC EQUITY FUNDS March 31, 2005 (Amounts in thousands, except shares)
INTERNATIONAL EQUITY INDEX FUND -- CONTINUED
<Table>
<Caption>
- -------------------------------------------------------
Shares Value
- -------------------------------------------------------
IRELAND--CONTINUED
CRH PLC 39,038 $ 1,023
DEPFA BANK PLC 44,949 711
Elan Corp. PLC * 12,643 39
Independent News & Media PLC 152 1
Irish Life & Permanent PLC 22,985 408
Kerry Group PLC 10,722 259
Kerry Group PLC, Cl A 6,213 218
--------
5,476
--------
ITALY (9.2%)
Alleanza Assicurazioni SpA 58,231 760
Arnoldo Mondadori Editore
SpA 16,933 181
Assicurazioni Generali SpA 123,038 3,972
Autogrill SpA * 16,216 243
Autostrade SpA 36,675 950
Banca Antoniana Popolare
Veneta SpA * 29,932 970
Banca Fideuram SpA 41,601 213
Banca Intesa SpA 113,372 521
Banca Intesa SpA 411,683 2,092
Banca Monte dei Paschi di
Siena SpA (e) 143,278 482
Banca Nazionale del Lavoro
SpA * (e) 214,794 691
Banca Popolare di Milano
Scarl SpA 54,144 518
Banche Popolari Unite SpA 44,746 939
Banco Popolare di Verona e
Novara Scrl SpA 48,259 900
Benetton Group SpA 10,088 97
Bulgari SpA 18,863 224
Capitalia SpA 185,381 966
Edison SpA * 113,434 231
Enel SpA 481,437 4,606
Eni SpA 346,283 8,991
Fiat SpA * (e) 69,474 505
FinecoGroup SpA * 23,850 210
Finmeccanica SpA 782,540 793
Gruppo Editoriale L'Espresso
SpA 24,288 152
Italcementi SpA 10,716 180
La Rinascente SpA * 30,590 0
Luxottica Group SpA 18,396 378
Mediaset SpA 74,771 1,076
MEDIOBANCA -- Banca di
Credito Finanziario SpA 60,382 1,048
Mediolanum SpA 34,862 238
Parmalat Finanziaria SpA * 46,288 0
</Table>
<Table>
<Caption>
- -------------------------------------------------------
Shares Value
- -------------------------------------------------------
ITALY--CONTINUED
Pirelli & C. SpA 370,099 $ 461
Riunione Adriatica di
Sicurta SpA 37,779 889
Sanpaolo IMI SpA 136,946 2,145
Seat Pagine Gialle SpA 556,999 232
Snam Rete Gas SpA 122,235 681
Telecom Italia Media SpA * 273,453 153
Telecom Italia Mobile SpA 223,918 1,499
Telecom Italia RNC SpA 712,736 2,229
Telecom Italia SpA 1,032,564 3,916
Tiscali SpA * 31,791 113
UniCredito Italiano SpA 566,872 3,329
--------
48,774
--------
JAPAN (22.8%)
77 Bank Ltd. 27,000 196
Acom Co. Ltd. 4,400 298
Advantest Corp. 4,300 330
AEON Co. Ltd. 37,900 640
Aeon Credit Service Co.
Ltd. 1,700 115
Aiful Corp. When Issued 1,350 106
Aiful Corp. 2,700 216
Aisin Seiki Co. Ltd. 10,000 228
Ajinomoto Co., Inc. 35,000 427
All Nippon Airways Co. Ltd. 43,000 147
Alps Electric Co. Ltd. 12,000 191
Amada Co. Ltd. 23,000 142
Aoyama Trading Co. Ltd. 4,200 113
Ariake Japan Co. Ltd. 2,740 68
Asahi Breweries Ltd. 25,500 330
Asahi Glass Co. Ltd. 48,000 506
Asahi Kasei Corp. 80,000 394
Bandai Co. Ltd. 5,700 116
Bank of Fukuoka Ltd. (The) 41,000 257
Bank of Yokohama Ltd. (The) 81,000 494
Benesse Corp. 4,300 146
Bridgestone Corp. 42,000 772
Canon, Inc. 53,400 2,863
Casio Computer Co. Ltd. 12,800 169
Central Glass Co. Ltd. 16,000 102
Central Japan Railway Co. 58 497
Chiba Bank Ltd. (The) 51,000 330
Chubu Electric Power Co.,
Inc. 42,300 1,016
Chugai Pharmaceutical Co.
Ltd. 18,500 284
Citizen Watch Co. Ltd. 21,100 203
COMSYS Holdings Corp. 11,000 92
Credit Saison Co. Ltd. 8,800 317
CSK Corp. 4,200 175
</Table>
57
<Table>
<Caption>
- -------------------------------------------------------
Shares Value
- -------------------------------------------------------
JAPAN--CONTINUED
Dai Nippon Printing Co.
Ltd. 38,000 $ 620
Daiichi Pharmaceutical Co.
Ltd. 15,200 356
Daikin Industries Ltd. 12,800 322
Daimaru, Inc. (The) 16,000 143
Dainippon Ink & Chemicals,
Inc. 53,000 145
Daito Trust Construction Co.
Ltd. 5,400 227
Daiwa House Industry Co.
Ltd. 32,000 368
Daiwa Securities Group,
Inc. 81,000 533
Denki Kagaku Kogyo KK 38,000 138
Denso Corp. 32,100 799
Dentsu, Inc. 96 262
Dowa Mining Co. Ltd. 20,000 135
East Japan Railway Co. 203 1,091
Ebara Corp. 23,000 102
Eisai Co. Ltd. 15,500 526
FamilyMart Co. Ltd. 4,500 133
Fanuc Ltd. 8,300 520
Fast Retailing Co. Ltd. 3,300 200
Fuji Electric Co. Ltd. 39,000 123
Fuji Photo Film Co. Ltd. 29,200 1,068
Fuji Television Network,
Inc. 35 83
Fujikura Ltd. 30,000 132
Fujisawa Pharmaceutical Co.
Ltd. 19,100 447
Fujitsu Ltd. 112,000 673
Furukawa Electric Co. Ltd.
(The) * 39,000 179
Gunma Bank Ltd. 32,000 185
Hino Motors Ltd. 18,000 113
Hirose Electric Co. Ltd. 2,000 204
Hitachi Cable Ltd. 21,000 86
Hitachi Chemical Co. Ltd. 7,100 127
Hitachi Ltd. 202,000 1,255
Hokkaido Electric Power Co.,
Inc. 15,400 313
Hokuhoku Financial Group,
Inc. 70,000 212
Honda Motor Co. Ltd. 48,300 2,419
Hoya Corp. 6,500 715
Isetan Co. Ltd. 11,900 155
Ishikawajima-Harima Heavy
Industries Co. Ltd. * 82,000 132
Ito-Yokado Co. Ltd. 21,500 858
ITOCHU Corp. 92,000 463
Itochu Techno-Science Corp. 2,200 71
</Table>
<Table>
<Caption>
- -------------------------------------------------------
Shares Value
- -------------------------------------------------------
JAPAN--CONTINUED
JAFCO Co. Ltd. 1,900 $ 119
Japan Airlines Corp. * 53,000 155
Japan Real Estate Investment
Corp. 20 163
Japan Retail Fund Investment
Corp. 19 151
Japan Tobacco, Inc. 54 599
JFE Holdings, Inc. 34,275 956
JGC Corp. 14,000 153
Joyo Bank Ltd. (The) 51,300 276
JSR Corp. 11,200 221
Kajima Corp. 63,000 260
Kamigumi Co. Ltd. 22,000 184
Kaneka Corp. 18,000 199
Kansai Electric Power Co.,
Inc. (The) 43,000 862
Kansai Paint Co. Ltd. 22,000 136
Kao Corp. 31,000 713
Katokichi Co. Ltd. 13,800 102
Kawasaki Heavy Industries
Ltd. 91,000 157
Kawasaki Kisen Kaisha Ltd. 37,000 255
Keihin Electric Express
Railway Co. Ltd. 38,000 235
Keio Electric Railway Co.
Ltd. 45,000 267
Keyence Corp. 2,000 463
Kikkoman Corp. 13,000 130
Kinden Corp. 14,000 110
Kinki Nippon Railway Co.
Ltd. 110,250 374
Kirin Brewery Co. Ltd. 42,000 409
Kobe Steel Ltd. 168,000 296
Kokuyo Co. Ltd. 8,400 107
Komatsu Ltd. 62,000 466
Konami Corp. 5,600 124
Konica Minolta Holdings,
Inc. 29,000 293
Kubota Corp. 64,000 341
Kuraray Co. Ltd. 26,500 237
Kurita Water Industries
Ltd. 7,500 118
Kyocera Corp. 9,800 699
Kyowa Hakko Kogyo Co. Ltd. 28,000 214
Kyushu Electric Power Co.,
Inc. 26,300 559
Lawson, Inc. 3,900 143
Leopalace21 Corp. 8,000 132
Mabuchi Motor Co. Ltd. 2,100 126
Makita Corp. 11,000 201
</Table>
58
SCHEDULE OF PORTFOLIO INVESTMENTS
STI CLASSIC EQUITY FUNDS March 31, 2005 (Amounts in thousands, except shares)
INTERNATIONAL EQUITY INDEX FUND -- CONTINUED
<Table>
<Caption>
- -------------------------------------------------------
Shares Value
- -------------------------------------------------------
JAPAN--CONTINUED
Marubeni Corp. 92,000 $ 295
Marui Co. Ltd. 21,800 293
Matsumotokiyoshi Co. Ltd. 3,300 98
Matsushita Electric
Industrial Co. Ltd. 140,880 2,076
Matsushita Electric Works
Ltd. 17,000 146
Meiji Seika Kaisha Ltd. 25,000 125
Meitec Corp. 3,200 112
Millea Holdings, Inc. 82 1,193
Minebea Co. Ltd. 27,000 116
Mitsubishi Chemical Corp. 108,000 345
Mitsubishi Corp. 71,300 924
Mitsubishi Electric Corp. 107,000 554
Mitsubishi Estate Co. Ltd. 62,000 721
Mitsubishi Gas Chemical Co.,
Inc. 28,000 131
Mitsubishi Heavy Industries
Ltd. 184,000 489
Mitsubishi Logistics Corp. 10,000 113
Mitsubishi Materials Corp. 63,000 150
Mitsubishi Rayon Co. Ltd. 42,000 155
Mitsubishi Tokyo Financial
Group, Inc. 270 2,342
Mitsui & Co. Ltd. 83,000 766
Mitsui Chemicals, Inc. 42,000 235
Mitsui Engineering &
Shipbuilding Co. Ltd. 56,000 106
Mitsui Fudosan Co. Ltd. 45,000 528
Mitsui Mining & Smelting Co.
Ltd. 39,000 173
Mitsui O.S.K. Lines Ltd. 64,000 411
Mitsui Sumitomo Insurance
Co. Ltd. 81,340 746
Mitsui Trust Holdings, Inc. 36,000 358
Mitsukoshi Ltd. 29,000 151
Mizuho Financial Group,
Inc. 466 2,204
Murata Manufacturing Co.
Ltd. 13,500 724
NEC Corp. 104,000 629
NEC Electronics Corp. 2,300 107
Net One Systems Co. Ltd. 33 85
NGK Insulators Ltd. 18,000 179
NGK Spark Plug Co. Ltd. 14,000 145
Nichii Gakkan Co. 1,900 57
Nidec Corp. 2,900 361
Nikko Cordial Corp. 104,000 520
Nikon Corp. 20,000 230
Nintendo Co. Ltd. 6,000 655
Nippon Building Fund, Inc. 22 188
</Table>
<Table>
<Caption>
- -------------------------------------------------------
Shares Value
- -------------------------------------------------------
JAPAN--CONTINUED
Nippon Express Co. Ltd. 60,000 $ 316
Nippon Meat Packers, Inc. 11,000 139
Nippon Mining Holdings,
Inc. 53,500 294
Nippon Oil Corp. 87,000 618
Nippon Sheet Glass Co. Ltd. 28,000 119
Nippon Steel Corp. 390,000 986
Nippon Telegraph & Telephone
Corp. 306 1,339
Nippon Unipac Holding 54 249
Nippon Yusen KK 66,000 398
Nissan Chemical Industries
Ltd. 14,000 121
Nissan Motor Co. Ltd. 159,900 1,639
Nisshin Seifun Group, Inc. 13,000 138
Nisshin Steel Co. Ltd. 61,000 160
Nissin Food Products Co.
Ltd. 5,700 149
Nitto Denko Corp. 10,100 529
NOK Corp. 6,000 143
Nomura Holdings, Inc. 118,600 1,659
Nomura Research Institute
Ltd. 1,500 140
NSK Ltd. 32,000 165
NTN Corp. 30,000 167
NTT DATA Corp. 77 266
NTT DoCoMo, Inc. 1,195 2,006
Obayashi Corp. 40,000 247
OBIC Co. Ltd. 500 98
Odakyu Electric Railway Co.
Ltd. 52,000 318
Oji Paper Co. Ltd. 50,000 281
Oki Electric Industry Co.
Ltd. * 40,000 169
Olympus Corp. 15,000 350
Omron Corp. 13,300 290
Onward Kashiyama Co. Ltd. 12,000 177
Oracle Corp. (e) 2,100 97
Oriental Land Co. Ltd. 3,200 209
ORIX Corp. 4,920 627
Osaka Gas Co. Ltd. 140,000 431
Pioneer Corp. 12,000 216
Promise Co. Ltd. 5,500 376
Rakuten, Inc. 288 251
Resona Holdings, Inc. * 298,000 598
Ricoh Co. Ltd. 43,000 738
Rohm Co. Ltd. 6,500 628
Sankyo Co. Ltd. 3,400 165
Sankyo Co. Ltd. (Gunma) 24,600 519
Sanyo Electric Co. Ltd. (e) 98,000 305
</Table>
59
<Table>
<Caption>
- -------------------------------------------------------
Shares Value
- -------------------------------------------------------
JAPAN--CONTINUED
Sapporo Holdings Ltd. 25,000 $ 117
Secom Co. Ltd. 12,500 520
Sega Sammy Holdings * 4,252 259
Seiko Epson Corp. 6,200 230
Sekisui Chemical Co. Ltd. 29,000 211
Sekisui House Ltd. 30,000 320
Seven-Eleven Japan Co. Ltd. 23,700 694
Sharp Corp. 61,000 923
Shimamura Co. Ltd. 1,400 107
Shimano, Inc. 5,100 171
Shimizu Corp. 37,000 189
Shin-Etsu Chemical Co. Ltd. 21,300 807
Shinsei Bank Ltd. 69,000 393
Shionogi & Co. Ltd. 21,000 290
Shiseido Co. Ltd. 23,000 304
Shizuoka Bank Ltd. (The) 39,000 394
Showa Denko KK 73,000 191
Showa Shell Sekiyu KK 14,300 139
Skylark Co. Ltd. 5,600 94
SMC Corp. 3,100 351
Softbank Corp. 13,800 569
Sompo Japan Insurance, Inc. 47,000 491
Sony Corp. 59,700 2,378
Stanley Electric Co. Ltd. 11,800 179
Sumitomo Chemical Co. Ltd. 87,000 430
Sumitomo Corp. 61,000 523
Sumitomo Electric Industries
Ltd. 42,000 447
Sumitomo Heavy Industries
Ltd. * 38,000 150
Sumitomo Metal Industries
Ltd. 242,000 436
Sumitomo Metal Mining Co.
Ltd. 35,000 263
Sumitomo Mitsui Financial
Group, Inc. 243 1,646
Sumitomo Realty &
Development Co. Ltd. 26,000 314
Sumitomo Trust & Banking Co.
Ltd. (The) 84,000 548
Suruga Bank Ltd. 17,000 151
Suzuken Co. Ltd. 3,600 89
T&D Holdings, Inc. * 10,650 541
Taiheiyo Cement Corp. 59,000 166
Taisei Corp. 66,000 247
Taisho Pharmaceutical Co.
Ltd. 11,000 234
Taiyo Yuden Co. Ltd. 10,000 108
Takara Holdings, Inc. 14,000 98
Takashimaya Co. Ltd. 20,000 205
</Table>
<Table>
<Caption>
- -------------------------------------------------------
Shares Value
- -------------------------------------------------------
JAPAN--CONTINUED
Takeda Pharmaceutical Co.
Ltd. 56,200 $ 2,679
Takefuji Corp. 8,140 548
TDK Corp. 7,400 507
Teijin Ltd. 57,000 244
Teikoku Oil Co. Ltd. 22,000 160
Terumo Corp. 10,600 319
THK Co. Ltd. 6,500 131
TIS, Inc. 2,600 102
Tobu Railway Co. Ltd. 70,000 283
Toho Co. Ltd. 9,300 152
Tohoku Electric Power Co.,
Inc. 28,100 521
Tokyo Broadcasting System,
Inc. 3,400 66
Tokyo Electric Power Co.,
Inc. (The) 72,000 1,746
Tokyo Electron Ltd. 10,500 598
Tokyo Gas Co. Ltd. 165,000 665
Tokyu Corp. 68,000 355
TonenGeneral Sekiyu KK 24,000 246
Toppan Printing Co. Ltd. 36,000 394
Toray Industries, Inc. 78,000 350
Toshiba Corp. 187,000 781
Tosoh Corp. 34,000 168
Tostem Inax Holding Corp. 16,412 301
TOTO Ltd. 20,700 178
Toyo Seikan Kaisha Ltd. 9,800 182
Toyobo Co. Ltd. 60,000 146
Toyota Industries Corp. 11,200 316
Toyota Motor Corp. 183,900 6,843
Trend Micro, Inc. 6,000 258
Ube Industries Ltd. * 69,000 142
UFJ Holdings, Inc. 230 1,210
Uni-Charm Corp. 2,800 126
UNY Co. Ltd. 12,000 144
Ushio, Inc. 9,000 172
USS Co. Ltd. 1,690 131
Wacoal Corp. (e) 11,000 146
West Japan Railway Co. 108 440
World Co. Ltd. 2,950 107
Yahoo Japan Corp. * 114 267
Yahoo Japan Corp., When
Issued 114 268
Yakult Honsha Co. Ltd. 8,000 154
Yamada Denki Co. Ltd. 4,900 257
Yamaha Corp. 12,800 185
Yamaha Motor Co. Ltd. 11,700 200
Yamanouchi Pharmaceutical
Co. Ltd. 20,000 677
</Table>
60
SCHEDULE OF PORTFOLIO INVESTMENTS
STI CLASSIC EQUITY FUNDS March 31, 2005 (Amounts in thousands, except shares)
INTERNATIONAL EQUITY INDEX FUND -- CONTINUED
<Table>
<Caption>
- -------------------------------------------------------
Shares Value
- -------------------------------------------------------
JAPAN--CONTINUED
Yamato Transport Co. Ltd. 28,000 $ 401
Yamazaki Baking Co. Ltd. 12,000 113
Yokogawa Electric Corp. 15,000 203
--------
120,883
--------
LUXEMBOURG (0.1%)
Arcelor SA 31,204 713
--------
NETHERLANDS (3.0%)
ABN AMRO Holding NV 60,080 1,491
Aegon NV 51,960 701
Akzo Nobel NV 9,849 450
ASML Holding NV * 19,013 321
DSM NV 3,191 225
Heineken NV 8,635 299
ING Groep NV 69,224 2,091
Qiagen NV * 19,087 225
Reed Elsevier NV 27,156 409
Rodamco Europe NV 2,259 169
Royal Ahold NV * 59,022 494
Royal Dutch Petroleum Co. 75,907 4,539
Royal KPN NV 79,918 715
Royal Numico NV * 5,272 216
Royal Philips Electronics NV 49,214 1,356
TPG NV 16,380 466
Unilever NV 20,679 1,407
Vedior NV 7,056 126
VNU NV 9,156 267
Wolters Kluwer NV 10,557 193
--------
16,160
--------
NEW ZEALAND (0.5%)
Auckland International
Airport Ltd. 40,331 233
Carter Holt Harvey Ltd. 99,171 139
Fisher & Paykel Appliances
Holdings Ltd. 80,485 170
Fisher & Paykel Healthcare
Corp. Ltd. 88,556 189
Fletcher Building Ltd. 64,208 304
Sky City Entertainment Group
Ltd. 85,698 300
Telecom Corp. of New Zealand
Ltd. 223,772 966
Warehouse Group Ltd. 36,834 104
--------
2,405
--------
NORWAY (1.7%)
DNB Nor Bank ASA 103,740 1,060
Frontline Ltd. 6,050 289
Norsk Hydro ASA 23,480 1,937
</Table>
<Table>
<Caption>
- -------------------------------------------------------
Shares Value
- -------------------------------------------------------
NORWAY--CONTINUED
Norske Skogindustrier ASA
(e) 18,650 $ 372
Orkla ASA 29,900 1,095
Petroleum Geo-Services ASA * 2,738 180
Schibsted ASA 9,700 255
Ship Finance International
ASA 605 12
Statoil ASA 102,300 1,743
Storebrand ASA 41,600 377
Tandberg ASA (e) 19,194 201
Telenor ASA 107,600 968
Tomra Systems ASA (e) 35,350 158
Yara International ASA * 33,840 514
--------
9,161
--------
PORTUGAL (0.9%)
Banco BPI SA 72,756 297
Banco Comercial Portugues SA 320,259 872
Banco Espirito Santo SA 18,518 322
Brisa-Auto-estradas de
Portugal SA 62,424 527
CIMPOR-Cimentos de Portugal
SGPS SA 33,701 189
Electricidade de Portugal SA
(EDP) 298,242 831
Keppel Corp. Ltd. 31,000 205
Portugal Telecom SGPS SA 108,195 1,268
PT Multimedia SA 6,990 174
Sonae SGPS SA 156,674 236
--------
4,921
--------
SINGAPORE (0.5%)
City Developments Ltd. 38,000 148
DBS Group Holdings Ltd. 49,467 447
Oversea-Chinese Banking
Corp. Ltd. 51,350 429
Singapore Airlines Ltd. 31,000 223
Singapore Press Holdings
Ltd. 82,750 229
Singapore Telecommunications
Ltd. 236,580 370
United Overseas Bank Ltd. 55,000 480
Venture Corp. Ltd. 15,000 121
--------
2,447
--------
SPAIN (5.5%)
Abertis Infraestructuras SA
(e) 22,702 513
Acciona SA 2,801 253
</Table>
61
<Table>
<Caption>
- -------------------------------------------------------
Shares Value
- -------------------------------------------------------
SPAIN--CONTINUED
Acerinox SA (e) 18,763 $ 308
Actividades de Construccion
y Servicios SA (ACS) 22,937 568
Altadis SA 22,388 916
Amadeus Global Travel
Distribution SA, Cl A 29,156 275
Antena 3 de Television SA * 2,134 174
Banco Bilbao Vizcaya
Argentaria SA 251,931 4,102
Banco Popular Espanol SA (e) 12,353 799
Banco Santander Central
Hispano SA 469,042 5,709
Corporacion Mapfre SA 10,617 164
Endesa SA 76,983 1,732
Fomento de Construcciones y
Contratas SA 4,292 219
Gamesa Corporacion
Tecnologica SA (e) 10,910 145
Gas Natural SDG SA 14,649 421
Grupo Ferrovial SA 5,283 299
Iberdrola SA 62,976 1,648
Iberia Lineas Aereas de
Espana SA 54,071 181
Indra Sistemas SA 14,065 252
Industria de Diseno Textil
SA 17,129 512
Metrovacesa SA 4,033 216
Promotora de Informaciones
SA 7,303 148
Repsol YPF SA 75,077 1,988
Sacyr Vallehermoso Group SA 11,321 203
Sociedad General de Aguas de
Barcelona SA, Cl A 10,496 227
Sogecable SA * 3,336 134
Telefonica Publicidad e
Informacion SA 17,045 154
Telefonica SA 341,125 5,943
Union Fenosa SA 18,991 564
Zeltia SA (e) 16,758 140
--------
28,907
--------
SWEDEN (1.7%)
Assa Abloy AB 16,200 229
Atlas Copco AB 5,100 244
Atlas Copco AB, Cl B 3,447 151
Electrolux AB, Ser B 15,100 351
Gambro AB 12,100 165
H&M Hennes & Mauritz AB 21,550 741
Nordea Bank AB 96,000 971
</Table>
<Table>
<Caption>
- -------------------------------------------------------
Shares Value
- -------------------------------------------------------
SWEDEN--CONTINUED
Sandvik AB 9,700 $ 403
Scania AB, Cl B 4,727 201
Securitas AB 16,200 259
Skandia Forsakrings AB 55,400 281
Skandinaviska Enskilda
Banken AB 24,400 462
Skanska AB 21,100 255
SKF AB 4,500 210
Svenska Cellulosa AB ACA 8,100 305
Svenska Handelsbanken AB, Cl
A 24,100 569
Swedish Match AB 16,600 203
Tele2 AB 5,050 167
Telefonaktiebolaget LM
Ericsson (e) 658,800 1,855
TeliaSonera AB 88,500 526
Volvo AB, Cl A (e) 4,257 182
Volvo AB, Cl B 9,750 431
--------
9,161
--------
SWITZERLAND (1.7%)
ABB Ltd. * 31,847 198
Adecco SA 2,341 129
Compagnie Financiere
Richemont SA 10,136 318
Credit Suisse Group * 18,951 813
Holcim Ltd. 2,793 172
Nestle SA 5,476 1,498
Novartis AG 34,428 1,605
Roche Holding Ltd. 9,946 1,066
STMicroelectronics NV 37,972 632
Swiss Reinsurance Co. 4,914 352
Swisscom AG 485 178
Syngenta AG 2,091 218
UBS AG 17,170 1,449
Zurich Financial Services 2,175 382
--------
9,010
--------
UNITED KINGDOM (10.2%)
"Shell" Transport & Trading
Co. PLC (The) 230,224 2,066
3i Group PLC 19,293 245
AMVESCAP PLC 24,158 152
Anglo American PLC 33,221 788
ARM Holdings PLC 45,989 91
AstraZeneca PLC 40,102 1,580
Aviva PLC 55,586 667
BAA PLC 29,176 322
BAE Systems PLC 87,315 428
Barclays PLC 154,258 1,577
BG Group PLC 92,754 721
</Table>
62
SCHEDULE OF PORTFOLIO INVESTMENTS
STI CLASSIC EQUITY FUNDS March 31, 2005 (Amounts in thousands, except shares)
INTERNATIONAL EQUITY INDEX FUND -- CONCLUDED
<Table>
<Caption>
- -------------------------------------------------------
Shares Value
- -------------------------------------------------------
UNITED KINGDOM--CONTINUED
BHP Billiton PLC 59,079 $ 794
BOC Group PLC (The) 14,128 272
Boots Group PLC 21,960 259
BP PLC 518,242 5,370
BPB PLC 15,894 149
Brambles Industries PLC 23,781 136
British American Tobacco PLC 38,886 685
British Land Co. PLC (The) 14,243 216
British Sky Broadcasting
Group PLC 31,588 346
BT Group PLC 196,101 761
Bunzl PLC 19,010 186
Cable & Wireless PLC 60,688 148
Cadbury Schweppes PLC 49,854 500
Capita Group PLC (The) 22,657 161
Carnival PLC 4,190 230
Centrica PLC 104,895 457
Compass Group PLC 61,542 281
Corus Group PLC * 113,586 116
Daily Mail & General Trust
PLC 9,994 136
Diageo PLC 71,184 1,003
Dixons Group PLC 58,822 170
Elan Corp. PLC 18,086 57
Electrocomponents PLC 21,848 102
EMAP PLC 7,615 119
EMI Group PLC 25,165 112
Enterprise Inns PLC 11,103 162
Exel PLC 10,395 167
Friends Provident PLC 55,208 185
GKN PLC 26,516 127
GlaxoSmithKline PLC 140,712 3,225
GUS PLC 26,044 448
Hammerson PLC 10,082 158
Hanson PLC 19,621 186
Hays PLC 54,941 138
HBOS PLC 95,636 1,491
Hilton Group PLC 48,103 274
HSBC Holdings PLC 264,343 4,180
Imperial Chemical Industries
PLC 33,939 172
Imperial Tobacco Group PLC 17,361 456
InterContinental Hotels
Group PLC 19,648 229
International Power PLC * 49,176 167
Invensys PLC * 181,685 53
ITV PLC 107,984 260
J Sainsbury PLC 39,919 218
Johnson Matthey PLC 7,691 144
</Table>
<Table>
<Caption>
- -------------------------------------------------------
Shares Value
- -------------------------------------------------------
UNITED KINGDOM--CONTINUED
Kelda Group PLC 17,458 $ 197
Kingfisher PLC 62,867 343
Land Securities Group PLC 12,149 297
Legal & General Group PLC 161,666 346
Liberty International PLC 9,868 180
Lloyds TSB Group PLC 136,513 1,233
LogicaCMG PLC 26,336 88
Man Group PLC 7,480 194
Marks & Spencer Group PLC 45,326 296
Mitchells & Butlers PLC 18,568 121
National Grid Transco PLC 77,909 722
Next PLC 7,136 215
Pearson PLC 21,666 264
Peninsular & Oriental Steam
Navigation Co. (The) 25,768 141
Provident Financial PLC 11,023 147
Prudential PLC 57,957 554
Reckitt Benckiser PLC 13,559 431
Reed Elsevier PLC 31,620 328
Rentokil Initial PLC 57,491 176
Reuters Group PLC 37,372 288
Rexam PLC 17,873 160
Rio Tinto PLC 24,970 807
Rolls-Royce PLC * 45,348 209
Royal & Sun Alliance
Insurance Group PLC 87,212 129
Royal Bank of Scotland Group
PLC (The) 76,454 2,432
SABMiller PLC 19,778 310
Sage Group PLC (The) 39,397 150
Scottish & Newcastle PLC 23,811 207
Scottish & Southern Energy
PLC 24,895 415
Scottish Power PLC 52,051 402
Severn Trent PLC 13,258 229
Slough Estates PLC 17,383 160
Smith & Nephew PLC 25,736 242
Smiths Group PLC 17,331 279
Tesco PLC 187,968 1,124
Tomkins PLC 29,496 147
Trinity Mirror PLC 10,700 142
Unilever PLC 67,335 665
United Utilities PLC 21,660 258
United Utilities PLC, Cl A 11,610 99
Vodafone Group PLC 1,560,557 4,142
Whitbread Group PLC 9,996 176
William Hill Organization
Ltd. 15,859 165
Wolseley PLC 17,940 376
WPP Group PLC 30,966 352
</Table>
63
<Table>
<Caption>
- -------------------------------------------------------
Shares Value
- -------------------------------------------------------
UNITED KINGDOM--CONTINUED
Yell Group PLC 18,957 $ 169
--------
54,350
--------
Total Foreign Common Stocks
(Cost $393,491) 498,159
--------
FOREIGN PREFERRED STOCK (0.5%)
GERMANY (0.5%)
Fresenius Medical Care AG 4,244 344
Henkel KGaA, Vorzug 6,700 607
Porsche AG 952 692
ProSiebenSat.1 Media AG 9,823 182
RWE AG 4,371 231
Volkswagen AG (e) 12,553 453
--------
Total Foreign Preferred Stock
(Cost $1,911) 2,509
--------
EXCHANGE TRADED FUNDS (2.9%)
iShares MSCI EAFE Index Fund 51,300 8,149
iShares MSCI Germany Index
Fund (e) 125,289 2,265
iShares MSCI Italy Index
Fund 47,251 1,219
iShares MSCI Japan Index
Fund 344,025 3,609
--------
Total Exchange Traded Funds
(Cost $15,252) 15,242
--------
</Table>
<Table>
<Caption>
- -------------------------------------------------------
Shares Value
- -------------------------------------------------------
SHORT-TERM INVESTMENTS (9.1%)
Brown Brothers Harriman &
Co., Cayman Islands Cash
Sweep 23,993,553 $ 23,994
CSFB Enhanced Liquidity
Portfolio(f) 24,164,128 24,164
--------
Total Short-Term Investments
(Cost $48,158) 48,158
--------
Total Investments (Cost
$458,832)(a) -- 106.2% 564,115
Liabilities in excess of other
assets -- (6.2)% (32,759)
--------
Net Assets -- 100.0% $531,356
========
</Table>
The investment concentrations for the International Equity Index Fund as a
percentage of net assets, by industry, as of March 31, 2005, were as follows
(unaudited):
<Table>
Cash Equivalents 2.9%
Consumer Discretionary 11.8
Consumer Staples 5.6
Energy 7.7
Financials 26.2
Health Care 5.0
Industrials 10.0
Information Technology 5.8
Materials 7.2
Short-Term Investments 9.1
Telecommunication Services 7.9
Utilities 7.0
</Table>
See notes to schedules of portfolio investments and notes to financial
statements.
64
SCHEDULE OF PORTFOLIO INVESTMENTS
STI CLASSIC EQUITY FUNDS March 31, 2005 (Amounts in thousands, except shares)
LIFE VISION AGGRESSIVE GROWTH FUND
<Table>
<Caption>
- -------------------------------------------------------
Shares Value
- -------------------------------------------------------
EQUITY FUNDS (96.9%)
STI Classic Aggressive Growth
Stock Fund, T Shares (c) * 309,799 $ 3,064
STI Classic Capital
Appreciation Fund, T Shares
(c) 995,147 12,162
STI Classic Emerging Growth
Stock Fund, T Shares (c) * 54,252 509
STI Classic Growth and Income
Fund, T Shares (c) 626,387 10,066
STI Classic International
Equity Index Fund, T Shares
(c) 629,358 8,075
STI Classic Mid-Cap Equity
Fund, T Shares (c) 169,694 2,041
STI Classic Mid-Cap Value
Equity Fund, T Shares (c) 166,112 2,038
STI Classic Small Cap Growth
Stock Fund, T Shares (c) * 50,695 1,013
STI Classic Small Cap Value
Equity Fund, T Shares (c) 76,352 1,516
</Table>
<Table>
<Caption>
- -------------------------------------------------------
Shares Value
- -------------------------------------------------------
EQUITY FUNDS--CONTINUED
STI Classic Strategic
Quantitative Equity Fund, T
Shares (c) * 153,203 $ 2,030
STI Classic Value Income Stock
Fund, T Shares (c) 534,351 6,727
-------
Total Equity Funds (Cost
$42,446) 49,241
-------
MONEY MARKET FUNDS (3.1%)
STI Classic Prime Quality
Money Market Fund, T Shares
(c) 1,586,381 1,586
Total Money Market Funds (Cost
$1,586) 1,586
-------
Total Investments (Cost $44,032)
(a) -- 100.0% 50,827
Liabilities in excess of other
assets -- 0.0% (12)
-------
Net Assets -- 100.0% $50,815
=======
</Table>
See notes to schedules of portfolio investments and notes to financial
statements.
65
LIFE VISION CONSERVATIVE FUND
<Table>
<Caption>
- --------------------------------------------------------
Shares Value
- --------------------------------------------------------
EQUITY FUNDS (24.6%)
STI Classic Aggressive Growth
Stock Fund, T Shares (c) * 10,713 $ 106
STI Classic Capital Appreciation
Fund, T Shares (c) 34,166 417
STI Classic Growth and Income
Fund, T Shares (c) 19,665 316
STI Classic International Equity
Index Fund, T Shares (c) 20,246 260
STI Classic Mid-Cap Equity Fund,
T Shares (c) 5,491 66
STI Classic Mid-Cap Value Equity
Fund, T Shares (c) 5,370 66
STI Classic Small Cap Growth
Stock Fund, T Shares (c) * 3,279 66
STI Classic Small Cap Value
Equity Fund, T Shares (c) 3,282 65
STI Classic Strategic
Quantitative Equity Fund, T
Shares (c) * 4,955 66
STI Classic Value Income Stock
Fund, T Shares (c) 16,700 210
------
Total Equity Funds (Cost $1,397) 1,638
------
</Table>
<Table>
<Caption>
- --------------------------------------------------------
Shares Value
- --------------------------------------------------------
FIXED INCOME FUNDS (71.3%)
STI Classic High Income Fund, T
Shares (c) 43,934 $ 324
STI Classic Institutional Core
Bond Fund, T shares (c) 436,573 4,418
------
Total Fixed Income Funds (Cost
$4,777) 4,742
------
MONEY MARKET FUNDS (3.5%)
STI Classic Prime Quality Money
Market Fund, T Shares (c) 234,713 235
------
Total Money Market Funds (Cost
$235) 235
------
Total Investments
(Cost $6,409) (a) -- 99.4% 6,615
Other assets in excess of
liabilities -- 0.6% 40
------
Net Assets -- 100.0% $6,655
======
</Table>
See notes to schedules of portfolio investments and notes to financial
statements.
66
SCHEDULE OF PORTFOLIO INVESTMENTS
STI CLASSIC EQUITY FUNDS March 31, 2005 (Amounts in thousands, except shares)
LIFE VISION GROWTH AND INCOME FUND
<Table>
<Caption>
- -------------------------------------------------------
Shares Value
- -------------------------------------------------------
EQUITY FUNDS (74.8%)
STI Classic Aggressive Growth
Stock Fund, T Shares (c) * 523,962 $ 5,182
STI Classic Capital
Appreciation Fund, T Shares
(c) 1,682,944 20,565
STI Classic Emerging Growth
Stock Fund, T Shares (c) * 80,281 753
STI Classic Growth and Income
Fund, T Shares (c) 1,041,956 16,744
STI Classic International
Equity Index Fund, T Shares
(c) 1,000,382 12,835
STI Classic Mid-Cap Equity
Fund, T Shares (c) 268,969 3,236
STI Classic Mid-Cap Value
Equity Fund, T Shares (c) 263,231 3,230
STI Classic Small Cap Growth
Stock Fund, T Shares (c) * 70,136 1,402
STI Classic Small Cap Value
Equity Fund, T Shares (c) 108,572 2,156
STI Classic Strategic
Quantitative Equity Fund, T
Shares (c) * 244,157 3,235
STI Classic Value Income
Stock Fund, T Shares (c) 889,161 11,195
--------
Total Equity Funds (Cost
$68,390) 80,533
--------
</Table>
<Table>
<Caption>
- -------------------------------------------------------
Shares Value
- -------------------------------------------------------
FIXED INCOME FUNDS (22.0%)
STI Classic High Income Fund,
T Shares (c) 288,441 $ 2,129
STI Classic Institutional
Core Bond Fund, T shares
(c) 2,131,748 21,573
--------
Total Fixed Income Funds (Cost
$23,740) 23,702
--------
MONEY MARKET FUNDS (3.2%)
STI Classic Prime Quality
Money Market Fund, T Shares
(c) 3,466,883 3,467
--------
Total Money Market Funds (Cost
$3,467) 3,467
--------
Total Investments
(Cost $95,597) (a) -- 100.0% 107,702
Other assets in excess of
liabilities -- 0.0% 34
--------
Net Assets -- 100.0% $107,736
========
</Table>
See notes to schedules of portfolio investments and notes to financial
statements.
67
LIFE VISION MODERATE GROWTH FUND
<Table>
<Caption>
- -------------------------------------------------------
Shares Value
- -------------------------------------------------------
EQUITY FUNDS (54.7%)
STI Classic Aggressive Growth
Stock Fund, T Shares (c) * 535,772 $ 5,299
STI Classic Capital
Appreciation Fund, T Shares
(c) 1,722,918 21,054
STI Classic Growth and Income
Fund, T Shares (c) 1,104,123 17,743
STI Classic International
Equity Index Fund, T Shares
(c) 1,075,009 13,792
STI Classic Mid-Cap Equity
Fund, T Shares (c) 259,110 3,117
STI Classic Mid-Cap Value
Equity Fund, T Shares (c) 253,198 3,107
STI Classic Small Cap Growth
Stock Fund, T Shares (c) * 154,080 3,080
STI Classic Small Cap Value
Equity Fund, T Shares (c) 154,393 3,066
STI Classic Strategic
Quantitative Equity Fund, T
Shares (c) * 232,581 3,082
STI Classic Value Income
Stock Fund, T Shares (c) 939,152 11,824
--------
Total Equity Funds (Cost
$70,517) 85,164
--------
</Table>
<Table>
<Caption>
- -------------------------------------------------------
Shares Value
- -------------------------------------------------------
FIXED INCOME FUNDS (41.9%)
STI Classic High Income Fund,
T Shares (c) 620,803 $ 4,582
STI Classic Institutional
Core Bond Fund, T shares
(c) 5,977,988 60,497
--------
Total Fixed Income Funds (Cost
$65,201) 65,079
--------
MONEY MARKET FUNDS (3.3%)
STI Classic Prime Quality
Money Market Fund, T Shares
(c) 5,054,768 5,055
--------
Total Money Market Funds (Cost
$5,055) 5,055
--------
Total Investments
(Cost $140,773) (a) -- 99.9% 155,298
Other assets in excess of
liabilities -- 0.1% 182
--------
Net Assets -- 100.0% $155,480
========
</Table>
See notes to schedules of portfolio investments and notes to financial
statements.
68
SCHEDULE OF PORTFOLIO INVESTMENTS
STI CLASSIC EQUITY FUNDS March 31, 2005 (Amounts in thousands, except shares)
MID-CAP EQUITY FUND
<Table>
<Caption>
- -------------------------------------------------------
Shares or
Principal
Amount Value
- -------------------------------------------------------
COMMON STOCKS (96.0%)
CONSUMER DISCRETIONARY (18.3%)
Abercrombie & Fitch Co., Cl A 39,149 $ 2,241
Aeropostale, Inc. * 27,244 892
American Eagle Outfitters,
Inc. 61,570 1,819
Autoliv, Inc. 19,432 926
Bed Bath & Beyond, Inc. * 40,832 1,492
Black & Decker Corp. (The) 22,617 1,787
Choice Hotels International,
Inc. 50,829 3,149
Coach, Inc. * 31,295 1,772
Dollar General Corp. 84,774 1,857
Guitar Center, Inc. * 13,204 724
Hilton Hotels Corp. 49,364 1,103
International Game Technology 39,540 1,054
J. C. Penney Co., Inc. 25,578 1,328
Knight-Ridder, Inc. (e) 27,444 1,846
Lennar Corp., Cl A (e) 44,531 2,524
M.D.C. Holdings, Inc. 36,359 2,532
Marvel Enterprises, Inc. * 23,965 479
McGraw-Hill Cos., Inc. (The) 35,690 3,114
Nordstrom, Inc. 22,748 1,260
NVR, Inc. * (e) 2,374 1,864
Pacific Sunwear of
California, Inc. * 33,824 946
PETCO Animal Supplies, Inc. * 20,934 771
Ryland Group, Inc. (The) 15,801 980
Scholastic Corp. * (e) 54,555 2,013
Staples, Inc. 33,137 1,041
Urban Outfitters, Inc. * 18,636 894
YUM! Brands, Inc. 79,261 4,107
--------
44,515
--------
CONSUMER STAPLES (3.7%)
7-Eleven, Inc. * 92,686 2,226
Archer-Daniels-Midland Co. 77,017 1,893
Reynolds American, Inc. (e) 60,210 4,853
--------
8,972
--------
ENERGY (8.2%)
Amerada Hess Corp. (e) 41,343 3,978
Ashland, Inc. (e) 68,150 4,599
Devon Energy Corp. (e) 43,756 2,089
Marathon Oil Corp. 83,957 3,939
Newfield Exploration Co. * 16,150 1,199
Unocal Corp. 16,860 1,040
Valero Energy Corp. 43,514 3,188
--------
20,032
--------
</Table>
<Table>
<Caption>
- -------------------------------------------------------
Shares or
Principal
Amount Value
- -------------------------------------------------------
FINANCIALS (19.2%)
American Capital Strategies
Ltd. 31,440 $ 988
Annaly Mortgage Management,
Inc. (e) 109,377 2,052
Arch Capital Group Ltd. * 12,907 517
Bear Stearns Cos., Inc. (e) 8,755 875
Brandywine Realty Trust 39,707 1,128
CBL & Associates Properties,
Inc. 6,526 467
Comerica, Inc. 37,915 2,088
Doral Financial Corp. 21,275 466
E*TRADE Financial Corp. * 124,395 1,493
General Growth Properties,
Inc. 77,652 2,648
Huntington Bancshares, Inc. 33,917 811
IndyMac Bancorp, Inc. 25,278 859
Legg Mason, Inc. (e) 12,425 971
Lexington Corp. Properties
Trust 80,568 1,768
Lincoln National Corp. 76,573 3,456
MBIA, Inc. 17,334 906
MGIC Investment Corp. 26,615 1,641
National City Corp. 38,275 1,282
North Fork Bancorporation,
Inc. 61,053 1,694
PartnerRe Ltd. 43,624 2,817
PMI Group, Inc. (The) 27,507 1,046
Principal Financial Group,
Inc. 54,311 2,090
Radian Group, Inc. 25,666 1,225
Raymond James Financial, Inc. 40,901 1,239
Regions Financial Corp. (e) 44,785 1,451
Simon Property Group, Inc.
(e) 12,620 765
SL Green Realty Corp. 37,072 2,084
Sovereign BanCorp, Inc. 59,017 1,308
St. Paul Travelers Cos., Inc.
(The) 65,664 2,412
Student Loan Corp. (The) (e) 12,741 2,662
Westcorp 43,522 1,839
--------
47,048
--------
HEALTH CARE (10.3%)
Becton, Dickinson & Co. 18,525 1,082
Biomet, Inc. 11,976 435
CIGNA Corp. 39,152 3,496
Coventry Health Care, Inc. * 44,358 3,023
Genzyme Corp. * (e) 28,365 1,624
Hospira, Inc. * 32,326 1,043
Humana, Inc. * (e) 88,260 2,819
ImClone Systems, Inc. * 20,908 721
</Table>
69
<Table>
<Caption>
- -------------------------------------------------------
Shares or
Principal
Amount Value
- -------------------------------------------------------
HEALTH CARE--CONTINUED
Laboratory Corp. of America
Holdings * 42,292 $ 2,038
Medco Health Solutions, Inc.
* 33,509 1,661
PacifiCare Health Systems,
Inc. * (e) 33,718 1,919
Protein Design Labs, Inc. * 45,807 732
Sepracor, Inc. * (e) 14,805 850
Thermo Electron Corp. * 25,880 655
WellPoint, Inc. * 23,516 2,948
--------
25,046
--------
INDUSTRIALS (10.6%)
Deluxe Corp. 45,467 1,812
Eaton Corp. 46,731 3,056
H & R Block, Inc. (e) 46,255 2,340
Old Dominion Freight Line,
Inc. * 21,574 672
PACCAR, Inc. 19,367 1,402
Parker Hannifin Corp. 11,588 706
Pitney Bowes, Inc. 21,447 968
Rockwell Collins, Inc. (e) 95,003 4,520
Ryder System, Inc. 55,942 2,333
Southwest Airlines Co. 114,998 1,638
Textron, Inc. 52,225 3,897
Thomas & Betts Corp. * (e) 33,745 1,090
Universal Technical
Institute, Inc. * 18,279 673
W.W. Grainger, Inc. 12,136 756
--------
25,863
--------
INFORMATION TECHNOLOGY (13.8%)
Adobe Systems, Inc. 34,980 2,349
Alliance Data Systems Corp. * 12,046 487
Apple Computer, Inc. * (e) 58,060 2,417
Autodesk, Inc. 55,253 1,644
Avaya, Inc. * 138,151 1,614
BMC Software, Inc. * 48,646 730
Check Point Software
Technologies Ltd. * 32,264 701
Citrix Systems, Inc. * (e) 52,295 1,246
Corning, Inc. * (e) 112,870 1,256
Cree, Inc. * (e) 19,718 429
Juniper Networks, Inc. * (e) 67,340 1,486
Lam Research Corp. * 17,278 499
Lexmark International, Inc.,
Cl A * (e) 12,590 1,007
LSI Logic Corp. * 120,576 674
McAfee, Inc. * 59,284 1,337
</Table>
<Table>
<Caption>
- -------------------------------------------------------
Shares or
Principal
Amount Value
- -------------------------------------------------------
INFORMATION TECHNOLOGY--CONTINUED
MEMC Electronic Materials,
Inc. * 70,053 $ 942
National Semiconductor Corp.
(e) 113,584 2,341
NCR Corp. 47,012 1,586
Novellus Systems, Inc. * 63,822 1,706
QLogic Corp. * 26,488 1,073
Scientific-Atlanta, Inc. 65,399 1,846
SunGard Data Systems, Inc. * 32,206 1,111
Symantec Corp. * 28,784 614
VeriSign, Inc. * 49,157 1,411
VERITAS Software Corp. * 33,748 784
Xerox Corp. * 147,199 2,230
--------
33,520
--------
MATERIALS (4.8%)
Arch Coal, Inc. 25,591 1,101
Ball Corp. 59,140 2,453
Freeport-McMoRan Copper &
Gold, Inc., Cl B 24,460 969
Lubrizol Corp. (The) 73,611 2,992
Monsanto Co. (e) 65,343 4,215
--------
11,730
--------
TELECOMMUNICATION SERVICES (0.9%)
Citizens Communications Co. 106,214 1,375
Western Wireless Corp., Cl A
* 19,420 737
--------
2,112
--------
UTILITIES (6.2%)
Allegheny Energy, Inc. * (e) 65,337 1,350
Equitable Resources, Inc. 34,793 1,999
Northeast Utilities 139,770 2,692
PG&E Corp. (e) 45,384 1,548
Sempra Energy (e) 43,310 1,725
TXU Corp. (e) 23,833 1,898
UGI Corp. 43,417 1,972
Xcel Energy, Inc. 115,475 1,984
--------
15,168
--------
Total Common Stocks (Cost
$195,547) 234,006
--------
SHORT-TERM INVESTMENT (22.6%)
CSFB Enhanced Liquidity
Portfolio (f) 55,163,156 55,163
--------
Total Short-Term Investment
(Cost $55,163) 55,163
--------
</Table>
70
SCHEDULE OF PORTFOLIO INVESTMENTS
STI CLASSIC EQUITY FUNDS March 31, 2005 (Amounts in thousands, except shares)
MID-CAP EQUITY FUND -- CONCLUDED
<Table>
<Caption>
- -------------------------------------------------------
Shares or
Principal
Amount Value
- -------------------------------------------------------
REPURCHASE AGREEMENT (3.5%)
BNP Paribas, 2.820%, dated
03/31/05, to be repurchased
on 04/01/05, repurchase
price $8,438,543
(collateralized by U.S.
Government Agencies,
3.875%, due 02/15/10; total
market value $8,607,554) $ 8,438 $ 8,438
--------
Total Repurchase Agreement
(Cost $8,438) 8,438
--------
Total Investments (Cost
$259,148) (a) -- 122.1% 297,607
Liabilities in excess of other
assets -- (22.1)% (53,834)
--------
Net Assets -- 100.0% $243,773
========
</Table>
See notes to schedules of portfolio investments and notes to financial
statements.
71
MID-CAP VALUE EQUITY FUND
<Table>
<Caption>
- -------------------------------------------------------
Shares Value
- -------------------------------------------------------
COMMON STOCKS (96.1%)
CONSUMER DISCRETIONARY (15.1%)
American Axle &
Manufacturing Holdings,
Inc. (e) 154,050 $ 3,774
Dollar General Corp. 194,200 4,255
GTECH Holdings Corp. 136,400 3,209
Mattel, Inc. 276,600 5,906
Newell Rubbermaid, Inc. (e) 217,600 4,774
Pier 1 Imports, Inc. (e) 175,800 3,205
Tribune Co. (e) 113,000 4,505
Yankee Candle Co., Inc.
(The) * 105,175 3,334
--------
32,962
--------
CONSUMER STAPLES (7.4%)
Fomento Economico Mexicano
SA ADR 37,700 2,019
H.J. Heinz Co. 94,800 3,492
J.M. Smucker Co. (The) 43,700 2,198
Molson Coors Brewing Co., Cl
B (e) 46,100 3,558
Pepsi Bottling Group, Inc.
(The) 173,500 4,832
--------
16,099
--------
ENERGY (4.5%)
GlobalSantaFe Corp. 86,600 3,208
Marathon Oil Corp. 93,700 4,397
Noble Energy, Inc. (e) 31,600 2,149
--------
9,754
--------
FINANCIALS (25.3%)
Alliance Capital Management
Holding LP 46,200 2,178
AmSouth Bancorp 91,200 2,367
Assured Guaranty Ltd. 190,800 3,425
Colonial BancGroup, Inc.
(The) 158,900 3,261
Comerica, Inc. 157,800 8,691
FirstMerit Corp. 93,686 2,507
Mellon Financial Corp. 244,100 6,966
Northern Trust Corp. 133,300 5,791
Platinum Underwriters
Holdings Ltd. 168,300 4,999
Provident Financial
Services, Inc. 250,000 4,275
Safeco Corp. 59,900 2,918
South Financial Group, Inc.
(The) 249,800 7,628
--------
55,006
--------
</Table>
<Table>
<Caption>
- -------------------------------------------------------
Shares Value
- -------------------------------------------------------
HEALTH CARE (4.7%)
Health Management
Associates, Inc., Cl A (e) 139,700 $ 3,657
Hillenbrand Industries, Inc. 69,685 3,866
Manor Care, Inc. 74,200 2,698
--------
10,221
--------
INDUSTRIALS (17.4%)
Avery Dennison Corp. 48,200 2,985
Cintas Corp. (e) 190,700 7,878
Dover Corp. 214,300 8,099
Embraer-Empresa Brasileira
de Aeronautica SA ADR 140,800 4,407
Pall Corp. 241,600 6,552
Pitney Bowes, Inc. 32,000 1,444
R.R. Donnelley & Sons Co. 108,552 3,432
Rockwell Automation, Inc. 53,000 3,002
--------
37,799
--------
INFORMATION TECHNOLOGY (12.8%)
Diebold, Inc. 108,600 5,956
Harris Corp. (e) 85,400 2,788
Intersil Corp., Cl A 257,200 4,455
Microchip Technology, Inc.
(e) 168,000 4,370
Paychex, Inc. 103,500 3,397
Reynolds & Reynolds Co.
(The), Cl A 141,400 3,826
Tektronix, Inc. 127,800 3,135
--------
27,927
--------
MATERIALS (8.9%)
Alcan, Inc. 58,800 2,230
Domtar, Inc. 396,065 3,351
Foundation Coal Holdings,
Inc. 159,100 3,740
Lubrizol Corp. (The) 50,800 2,065
Sappi Ltd. ADR 343,500 4,224
Valspar Corp. (The) 82,849 3,856
--------
19,466
--------
Total Common Stocks (Cost
$197,682) 209,234
--------
MONEY MARKET FUND (2.7%)
Federated Prime Value
Obligations Fund, Cl I 5,843,522 5,844
--------
Total Money Market Fund (Cost
$5,844) 5,844
--------
</Table>
72
SCHEDULE OF PORTFOLIO INVESTMENTS
STI CLASSIC EQUITY FUNDS March 31, 2005 (Amounts in thousands, except shares)
MID-CAP VALUE EQUITY FUND--CONCLUDED
<Table>
<Caption>
- -------------------------------------------------------
Shares Value
- -------------------------------------------------------
SHORT-TERM INVESTMENT (10.8%)
CSFB Enhanced Liquidity
Portfolio (f) 23,542,277 $ 23,542
--------
Total Short-Term Investment
(Cost $23,542) 23,542
--------
Total Investments (Cost
$227,068) (a) -- 110.1% 238,620
Liabilities in excess of other
assets -- (9.6)% (20,920)
--------
Net Assets -- 100.0% $217,700
========
</Table>
See notes to schedules of portfolio investments and notes to financial
statements.
73
SMALL CAP GROWTH STOCK FUND
<Table>
<Caption>
- -------------------------------------------------------
Shares or
Principal
Amount Value
- -------------------------------------------------------
COMMON STOCKS (97.5%)
CONSUMER DISCRETIONARY (12.9%)
America's Car-Mart, Inc.
* 100,000 $ 3,506
bebe stores, inc. 80,000 2,716
Building Materials
Holding Corp. 90,000 4,003
Casual Male Retail Group,
Inc. * (e) 660,000 4,283
CBRL Group, Inc. (e) 125,000 5,163
Coldwater Creek, Inc. * 352,500 6,514
Conn's, Inc. * 220,000 4,136
CSK Auto Corp. * 330,000 5,825
Dover Downs Gaming &
Entertainment, Inc. 100,200 1,247
Electronics Boutique
Holdings Corp. * (e) 120,000 5,156
Emmis Communications
Corp., Cl A * (e) 170,000 3,267
Genesco, Inc. * 205,000 5,826
Gottschalks, Inc. * 240,000 2,484
Guitar Center, Inc. * 90,000 4,935
Isle of Capri Casinos,
Inc. * 130,000 3,450
Jos. A. Bank Clothiers,
Inc. * (e) 300,000 8,790
K2, Inc. * 200,000 2,750
MarineMax, Inc. * 195,000 6,080
Mikohn Gaming Corp. * (e) 171,692 2,156
New Frontier Media, Inc.
* 140,000 1,002
Noble International Ltd. 154,970 3,512
Orange 21, Inc. * 403,540 2,623
Penn National Gaming,
Inc. * 50,000 1,469
Quiksilver, Inc. * (e) 174,463 5,065
RARE Hospitality
International, Inc. *
(e) 20,000 618
Rocky Shoes & Boots, Inc.
* 210,000 5,575
Sauer-Danfoss, Inc. 139,819 3,164
Scientific Games Corp. * 280,000 6,398
Standard Pacific Corp.
(e) 35,000 2,527
Steiner Leisure Ltd. * 185,000 6,048
Talbots, Inc. (The) 150,000 4,797
Too, Inc. * (e) 255,000 6,291
----------
131,376
----------
CONSUMER STAPLES (3.3%)
BJ's Wholesale Club, Inc.
* (e) 175,000 5,436
</Table>
<Table>
<Caption>
- -------------------------------------------------------
Shares or
Principal
Amount Value
- -------------------------------------------------------
CONSUMER STAPLES--CONTINUED
Central European
Distribution Corp. *
(e) 97,069 $ 3,231
Central Garden & Pet Co.
* 85,000 3,728
Chiquita Brands
International, Inc. 909 24
Corn Products
International, Inc. 138,425 3,598
Cott Corp. * 150,000 3,635
Elizabeth Arden, Inc. *
(e) 280,000 6,647
Rayovac Corp. * (e) 175,000 7,280
----------
33,579
----------
ENERGY (3.6%)
Cal Dive International,
Inc. * (e) 120,000 5,436
Core Laboratories NV * 230,000 5,904
FMC Technologies, Inc. *
(e) 120,000 3,982
Key Energy Services, Inc.
* 240,800 2,762
Magnum Hunter Resources,
Inc. * 310,000 4,994
Mission Resources Corp. * 390,000 2,761
Tidewater, Inc. (e) 150,000 5,829
Unit Corp. * (e) 100,000 4,517
----------
36,185
----------
FINANCIALS (8.8%)
Accredited Home Lenders
Holding Co. * (e) 30,000 1,087
Affiliated Managers
Group, Inc. * (e) 104,782 6,499
American Safety Insurance
Holdings Ltd. * 150,000 2,235
Arch Capital Group Ltd. * 100,000 4,004
Asta Funding, Inc. 120,000 2,540
BankAtlantic Bancorp,
Inc. 230,000 4,002
Commercial Capital
Bancorp, Inc. 140,000 2,849
Corus Bankshares, Inc. 100,000 4,769
First Cash Financial
Services, Inc. * 100,000 2,117
First Niagara Financial
Group, Inc. 200,000 2,642
Fremont General Corp. 90,000 1,979
Infinity Property &
Casualty Corp. (e) 190,000 5,939
Northwest Bancorp, Inc. 80,000 1,713
Phoenix Cos., Inc. (The)
(e) 330,000 4,217
</Table>
74
SCHEDULE OF PORTFOLIO INVESTMENTS
STI CLASSIC EQUITY FUNDS March 31, 2005 (Amounts in thousands, except shares)
SMALL CAP GROWTH STOCK FUND -- CONTINUED
<Table>
<Caption>
- -------------------------------------------------------
Shares or
Principal
Amount Value
- -------------------------------------------------------
FINANCIALS--CONTINUED
Platinum Underwriters
Holdings Ltd. 175,000 $ 5,198
R & G Financial Corp., Cl
B 120,000 3,740
RLI Corp. 80,000 3,316
Santander BanCorp 105,000 2,765
Selective Insurance
Group, Inc. 50,000 2,312
South Financial Group,
Inc. (The) 85,000 2,596
United Community Banks,
Inc. 90,000 2,136
Universal American
Financial Corp * 295,000 5,104
W Holding Co., Inc. 520,000 5,236
Westcorp 117,000 4,943
Zenith National Insurance
Corp. (e) 110,000 5,705
----------
89,643
----------
HEALTH CARE (16.5%)
ABIOMED, Inc. * (e) 269,707 2,854
Align Technology, Inc. *
(e) 340,000 2,122
AMICAS, Inc. * 400,000 1,472
Aspect Medical Systems,
Inc. * 350,000 7,557
Bio-Rad Laboratories,
Inc., Cl A * 65,000 3,166
Bone Care International,
Inc. * 240,000 6,226
Connetics Corp. * (e) 300,000 7,587
Genesis Healthcare Corp.
* 110,000 4,718
Gentiva Health Services,
Inc. * 235,000 3,802
Hologic, Inc. * 175,000 5,578
IDEXX Laboratories, Inc.
* 80,000 4,333
Illumina, Inc. * 560,000 4,525
Intuitive Surgical, Inc.
* (e) 172,000 7,820
Kensey Nash Corp. * (e) 170,000 4,604
Kos Pharmaceuticals, Inc.
* 165,000 6,877
Martek Biosciences Corp.
* (e) 135,000 7,855
MGI Pharma, Inc. * (e) 235,000 5,938
Palomar Medical
Technologies, Inc. *
(e) 235,083 6,340
Par Pharmaceutical Cos.,
Inc. * 110,000 3,678
Per-Se Technologies, Inc.
* (e) 390,000 5,987
</Table>
<Table>
<Caption>
- -------------------------------------------------------
Shares or
Principal
Amount Value
- -------------------------------------------------------
HEALTH CARE--CONTINUED
Possis Medical, Inc. * 219,800 $ 1,840
Protein Design Labs, Inc.
* (e) 450,000 7,196
Province Healthcare Co. * 250,000 6,023
Renal Care Group, Inc. * 155,000 5,881
Salix Pharmaceuticals
Ltd. * 330,000 5,442
SFBC International, Inc.
* 210,000 7,400
Sierra Health Services,
Inc. * 65,000 4,150
SurModics, Inc. * (e) 210,000 6,701
Third Wave Technologies,
Inc. * 607,873 3,501
United Therapeutics Corp.
* 170,000 7,767
Ventana Medical Systems,
Inc. * 65,166 2,441
Ventiv Health, Inc. * 245,000 5,635
----------
167,016
----------
INDUSTRIALS (18.4%)
Actuant Corp., Cl A * (e) 129,798 5,831
Celadon Group, Inc. * 100,000 1,855
Coinstar, Inc. * 250,000 5,300
Copart, Inc. * 310,000 7,304
Covenant Transportation,
Inc., Cl A * 124,735 2,195
Dycom Industries, Inc. * 265,000 6,092
EDO Corp. 145,000 4,357
ElkCorp 185,000 7,115
Encore Wire Corp. * 370,000 3,774
Engineered Support
Systems, Inc. 60,000 3,211
Flow International Corp.
* 1,727,000 9,564
Gardner Denver, Inc. * 150,000 5,927
Genlyte Group, Inc. (The)
* 95,000 8,547
Gevity HR, Inc. 325,000 6,214
Greenbrier Cos., Inc. 200,660 7,041
Griffon Corp. * (e) 275,000 5,888
II-VI, Inc. * 130,000 2,267
Innovative Solutions &
Support, Inc. * (e) 135,000 4,286
Kforce, Inc. * 550,000 6,045
Labor Ready, Inc. * 300,000 5,595
Marten Transport Ltd. * 240,949 5,139
Mercury Computer Systems,
Inc. * (e) 165,000 4,551
Mueller Industries, Inc. 108,000 3,040
Navigant Consulting, Inc.
* 320,000 8,713
</Table>
75
<Table>
<Caption>
- -------------------------------------------------------
Shares or
Principal
Amount Value
- -------------------------------------------------------
INDUSTRIALS--CONTINUED
NCI Building Systems,
Inc. * 140,000 $ 5,404
Orbital Sciences Corp. * 300,000 2,904
Overnite Corp. 110,000 3,519
P.A.M. Transportation
Services, Inc. * 88,646 1,525
Pacer International, Inc.
* 140,000 3,345
Power-One, Inc. * 540,000 2,624
SI International, Inc. * 180,000 4,973
Simpson Co., Inc. 90,000 2,781
SkyWest, Inc. 245,000 4,555
U.S. Xpress Enterprises,
Inc. * 120,000 1,962
Ultralife Batteries, Inc.
* 310,000 5,307
Universal Truckload
Services, Inc. * 137,500 2,901
Volt Information
Sciences, Inc. * 81,250 1,962
Wabtec Corp. 195,000 3,996
Werner Enterprises, Inc. 257,729 5,008
Woodward Governor Co. 59,000 4,230
----------
186,847
----------
INFORMATION TECHNOLOGY (29.5%)
02Micro International
Ltd. * 210,000 2,161
Aeroflex, Inc. * 430,000 4,012
Aladdin Knowledge Systems
Ltd. * (e) 228,287 5,189
Altiris, Inc * 110,000 2,624
American Software, Inc. 450,272 2,922
ANSYS, Inc. * (e) 150,000 5,132
Anteon International
Corp. * 170,000 6,617
ARGON ST, Inc. * 180,000 5,940
ATMI, Inc. * (e) 190,000 4,758
AuthentiDate Holding
Corp. * 350,000 1,397
BEI Technologies, Inc. 160,000 3,835
Belden CDT, Inc. (e) 145,000 3,220
Bottomline Technologies
(de), Inc. * 330,000 4,307
CACI International, Inc.
* (e) 85,000 4,695
Captiva Software Corp. * 570,000 6,173
Carrier Access Corp. * 370,000 2,205
ChipMOS TECHNOLOGIES
(Bermuda) Ltd. * (e) 817,402 5,248
CIBER, Inc. * 300,000 2,181
</Table>
<Table>
<Caption>
- -------------------------------------------------------
Shares or
Principal
Amount Value
- -------------------------------------------------------
INFORMATION TECHNOLOGY--CONTINUED
Click Commerce, Inc * 335,000 $ 4,780
Credence Systems Corp. * 580,000 4,588
Cypress Semiconductor
Corp. * (e) 400,000 5,040
Digi International, Inc.
* 540,000 7,408
Ditech Communications
Corp. * 470,000 5,861
Dot Hill Systems Corp. * 62,796 374
EarthLink, Inc. * (e) 250,000 2,250
Epicor Software Corp. * 390,000 5,109
Euronet Worldwide, Inc. * 190,000 5,425
FEI Co. * (e) 200,000 4,630
Global Payments, Inc. (e) 80,000 5,159
Hutchinson Technology,
Inc. * 170,000 5,913
Hypercom Corp. * 129,886 614
Hyperion Solutions Corp.
* 120,000 5,293
InfoCrossing, Inc. * (e) 390,000 6,178
Integrated Device
Technology, Inc. * 340,000 4,090
IXYS Corp. * 360,000 4,118
Jupitermedia Corp. * 400,000 6,204
M-Systems Flash Disk
Pioneers, Ltd. * (e) 260,000 5,730
Magma Design Automation,
Inc. * 360,000 4,273
Measurement Specialties,
Inc. * 100,000 2,300
Merix Corp. * 255,000 2,859
Metrologic Instruments,
Inc. * 270,000 6,070
MicroStrategy, Inc., Cl A
* 110,000 5,970
MIPS Technologies, Inc. * 267,502 3,076
Moldflow Corp. * 212,492 3,398
Network Technology, PLC * 350,000 1,971
NICE Systems Ltd. * 245,000 7,893
OmniVision Technologies,
Inc. * (e) 99,177 1,503
Orbotech Ltd. * 150,000 3,285
PC Connection, Inc. * 400,000 2,348
Performance Technologies,
Inc. * 500,000 3,330
Radware Ltd. * 105,000 2,464
Radyne ComStream, Inc. * 490,000 4,003
ROFIN-SINAR Technologies,
Inc. * 215,000 6,909
Rogers Corp. * 150,000 6,000
Silicon Image, Inc. * 410,000 4,125
</Table>
76
SCHEDULE OF PORTFOLIO INVESTMENTS
STI CLASSIC EQUITY FUNDS March 31, 2005 (Amounts in thousands, except shares)
SMALL CAP GROWTH STOCK FUND -- CONCLUDED
<Table>
<Caption>
- -------------------------------------------------------
Shares or
Principal
Amount Value
- -------------------------------------------------------
INFORMATION TECHNOLOGY--CONTINUED
Silicon Storage
Technology, Inc. * 200,000 $ 744
Skyworks Solutions, Inc.
* 285,116 1,810
SM&A * 520,000 4,295
SS&C Technologies, Inc. 240,000 5,472
Stellent, Inc. * 295,000 2,481
Symmetricom, Inc. * 400,000 4,436
Synaptics, Inc. * (e) 150,000 3,480
TeleCommunication
Systems, Inc. * 850,000 2,270
THQ, Inc. * (e) 90,000 2,533
TransAct Technologies,
Inc. * 321,783 3,221
Transaction Systems
Architects, Inc. * (e) 149,000 3,449
Trimble Navigation Ltd. * 150,000 5,072
TTI Team Telecom
International Ltd. * 135,400 271
Ultimate Software Group,
Inc. (The) * 562,000 8,980
Verint Systems, Inc. * 133,239 4,655
Westell Technologies,
Inc., Cl A * 270,000 1,488
Western Digital Corp. * 510,000 6,502
Witness Systems, Inc. * 335,000 5,879
Workstream, Inc. * 110,000 490
----------
300,685
----------
MATERIALS (4.5%)
Agrium, Inc. 198,211 3,617
Aleris International,
Inc. * 240,000 5,988
Commercial Metals Co. 145,000 4,914
Florida Rock Industries,
Inc. 85,000 5,000
Georgia Gulf Corp. 110,000 5,058
Gibraltar Industries,
Inc. 240,000 5,266
Metal Management, Inc. 180,000 4,622
Silgan Holdings, Inc. 80,000 5,198
Texas Industries, Inc. 110,000 5,913
----------
45,576
----------
Total Common Stocks (Cost
$843,060) 990,907
----------
PREFERRED STOCKS (0.1%)
CONSUMER DISCRETIONARY
(0.1%)
Fedders Corp. (e) 21,500 515
----------
Total Preferred Stocks
(Cost $510) 515
----------
</Table>
<Table>
<Caption>
- -------------------------------------------------------
Shares or
Principal
Amount Value
- -------------------------------------------------------
CORPORATE BONDS (0.1%)
COPPER FOUNDRIES (0.1%)
Mueller Industries, Inc.,
6.000%, 11/01/14,
Callable 06/07/05 @ 105 $ 1,147 $ 1,110
----------
Total Corporate Bonds (Cost
$1,147) 1,110
----------
SHORT-TERM INVESTMENT (13.3%)
CSFB Enhanced Liquidity
Portfolio (f) 134,386,923 134,387
----------
Total Short-Term Investment
(Cost $134,387) 134,387
----------
WARRANTS (0.1%)
INDUSTRIALS (0.0%)
Flow International
Warrants 172,700 254
----------
INFORMATION TECHNOLOGY (0.1%)
InfoCrossing, Inc. * 139,109 1,099
----------
Total Warrants (Cost $6) 1,353
----------
REPURCHASE AGREEMENT (2.7%)
BNP Paribas, 2.820%,
dated 03/31/05, to be
repurchased on
04/01/05, repurchase
price $27,129,460
(collateralized by U.S.
Government Agencies,
3.875%, due 08/15/08;
total market value
$27,670,415) $ 27,127 27,127
----------
Total Repurchase Agreement
(Cost $27,127) 27,127
----------
Total Investments (Cost
$1,006,237) (a) -- 113.8% 1,155,399
Liabilities in excess of
other assets -- (13.8)% (140,348)
----------
Net Assets -- 100.0% $1,015,051
==========
</Table>
See notes to schedules of portfolio investments and notes to financial
statements.
77
SMALL CAP VALUE EQUITY FUND
<Table>
<Caption>
- -------------------------------------------------------
Shares Value
- -------------------------------------------------------
COMMON STOCKS (100.0%)
CONSUMER DISCRETIONARY (21.8%)
ArvinMeritor, Inc. (e) 280,500 $ 4,339
Bassett Furniture
Industries, Inc. 225,200 4,436
Benetton Group SpA ADR 237,100 4,569
Books-A-Million, Inc. 397,500 3,617
BorgWarner Transmission
Systems, Inc. 267,800 13,038
CBRL Group, Inc. (e) 389,800 16,100
Fairmont Hotels & Resorts,
Inc. 387,200 12,832
Grupo Elektra SA de CV ADR 256,800 8,230
Intrawest Corp. 474,100 9,070
K-Swiss, Inc., Cl A 432,400 14,283
Lithia Motors, Inc. 402,800 10,316
Makita Corp. ADR 518,454 9,540
Marine Products Corp. 85,376 1,435
Movado Group, Inc. (e) 629,900 11,653
Natuzzi SpA ADR 280,600 2,915
Nautilus Group, Inc. (The)
(e) 352,200 8,368
Pep Boys-Manny, Moe & Jack
(The) 122,400 2,152
Ritchie Bros. Auctioneers,
Inc. 128,900 4,073
Snap-on, Inc. 277,200 8,812
Sturm, Ruger & Co., Inc. 137,300 951
United Auto Group, Inc. 337,100 9,381
Winnebago Industries, Inc.
(e) 280,700 8,870
--------
168,980
--------
CONSUMER STAPLES (4.2%)
Church & Dwight Co., Inc. 377,850 13,402
Ingles Markets, Inc., Cl A 85,700 1,142
J.M. Smucker Co. (The) 203,143 10,218
Molson Coors Brewing Co., Cl
B (e) 104,900 8,095
--------
32,857
--------
ENERGY (3.2%)
CHC Helicopter Corp. 403,400 18,540
Tenaris SA ADR 103,473 6,365
--------
24,905
--------
FINANCIALS (15.3%)
American Financial Group,
Inc. (e) 209,100 6,440
BankAtlantic Bancorp, Inc. 409,000 7,117
Banner Corp. 118,600 3,199
City National Corp. 107,800 7,527
Cohen & Steers, Inc. 347,930 5,741
</Table>
<Table>
<Caption>
- -------------------------------------------------------
Shares Value
- -------------------------------------------------------
FINANCIALS--CONTINUED
Colonial BancGroup, Inc.
(The) 353,100 $ 7,246
Glacier Bancorp, Inc. 192,246 5,864
HCC Insurance Holdings, Inc.
(e) 293,200 10,602
Horizon Financial Corp. 239,406 4,496
Hub International Ltd. 649,700 12,538
International Bancshares
Corp. 96,700 3,353
Jefferies Group, Inc. 149,000 5,614
National Interstate Corp. * 24,579 413
PXRE Group Ltd. 178,100 4,568
Scottish Re Group Ltd. 180,400 4,063
Seacoast Banking Corp. of
Florida 224,600 4,420
StanCorp Financial Group,
Inc. 171,500 14,539
Washington Federal, Inc. 209,304 4,879
West Coast Bancorp 236,153 5,620
--------
118,239
--------
HEALTH CARE (8.3%)
Chemed Corp. 145,200 11,105
Cooper Cos., Inc. (The) (e) 316,300 23,058
Invacare Corp. 152,800 6,819
Mentor Corp. 417,100 13,389
Perrigo Co. (e) 513,300 9,830
--------
64,201
--------
INDUSTRIALS (20.9%)
ABM Industries, Inc. 349,500 6,721
ADESA, Inc. (e) 293,869 6,865
American Woodmark Corp. 13,948 506
Apogee Enterprises, Inc. 392,000 5,598
Baldor Electric Co. 317,800 8,202
Briggs & Stratton Corp. (e) 246,400 8,971
Brink's Co. (The) 501,800 17,363
CP Ships Ltd. 870,400 12,342
Cummins, Inc. (e) 174,500 12,276
ElkCorp 126,100 4,850
Embraer-Empresa Brasileira
de Aeronautica SA ADR 232,516 7,278
Engineered Support Systems,
Inc. 109,200 5,844
Harsco Corp. 167,300 9,973
Lan Airlines SA ADR 300,000 10,680
Lennox International, Inc. 360,789 7,908
LSI Industries, Inc. 516,487 5,800
Oshkosh Truck Corp. 136,800 11,216
Quixote Corp. 395,900 8,579
</Table>
78
SCHEDULE OF PORTFOLIO INVESTMENTS
STI CLASSIC EQUITY FUNDS March 31, 2005 (Amounts in thousands, except shares)
SMALL CAP VALUE EQUITY FUND -- CONCLUDED
<Table>
<Caption>
- -------------------------------------------------------
Shares Value
- -------------------------------------------------------
INDUSTRIALS--CONTINUED
Tecumseh Products Co., Cl A 80,100 $ 3,173
Valmont Industries, Inc. 355,200 7,928
--------
162,073
--------
INFORMATION TECHNOLOGY (13.5%)
Factset Research Systems,
Inc. (e) 404,100 13,339
Fair Isaac Corp. 506,700 17,451
Harris Corp. 762,556 24,897
Helix Technology Corp. 316,800 4,901
Keithley Instruments, Inc. 255,000 4,113
Lowrance Electronics, Inc. 185,500 4,510
Nam Tai Electronics, Inc. 410,600 10,922
Reynolds & Reynolds Co.
(The), Cl A 902,000 24,408
--------
104,541
--------
MATERIALS (11.8%)
Agnico-Eagle Mines Ltd. 466,300 6,785
Airgas, Inc. (e) 591,900 14,140
Arch Coal, Inc. 227,300 9,776
Cambrex Corp. 416,000 8,861
Companhia Siderurgica
Nacional ADR (e) 240,400 5,794
Peabody Energy Corp. 355,000 16,458
</Table>
<Table>
<Caption>
- -------------------------------------------------------
Shares Value
- -------------------------------------------------------
MATERIALS--CONTINUED
Sappi Ltd. ADR 451,900 $ 5,558
Sociedad Quimica y Minera de
Chile SA ADR 74,900 6,033
United States Steel Corp.
(e) 140,000 7,119
Valspar Corp. (The) 239,700 11,156
--------
91,680
--------
UTILITIES (1.0%)
Companhia de Saneamento
Basico ADR 642,700 7,912
--------
Total Common Stocks (Cost
$551,462) 775,388
--------
SHORT-TERM INVESTMENT (11.4%)
CSFB Enhanced Liquidity
Portfolio (f) 88,018,345 88,018
--------
Total Short-Term Investment
(Cost $88,018) 88,018
--------
Total Investments (Cost
$639,480) (a) -- 111.4% 863,406
Liabilities in excess of other
assets -- (11.4)% (88,222)
--------
Net Assets -- 100.0% $775,184
========
</Table>
See notes to schedules of portfolio investments and notes to financial
statements.
79
STRATEGIC QUANTITATIVE EQUITY FUND
<Table>
<Caption>
- -------------------------------------------------------
Shares or
Principal
Amount Value
- -------------------------------------------------------
COMMON STOCKS (99.5%)
CONSUMER DISCRETIONARY (14.7%)
American Eagle Outfitters,
Inc. 14,835 $ 438
AutoZone, Inc. * 5,114 438
Bed Bath & Beyond, Inc. * 11,955 437
Boyd Gaming Corp. 8,363 436
Building Materials Holding
Corp. 9,958 444
CarMax, Inc. * 13,774 428
Centex Corp. 7,614 436
Coach, Inc. * 7,736 438
D. R. Horton, Inc. 14,839 434
Darden Restaurants, Inc. 14,291 438
Fortune Brands, Inc. 5,387 434
Harman International
Industries, Inc. 4,938 437
Hibbet Sporting Goods, Inc. * 14,361 431
Hovnanian Enterprises, Inc. * 8,549 436
KB Home 3,732 438
Lennar Corp., Cl A 7,738 439
Lowe's Cos., Inc. 7,675 438
M.D.C. Holdings, Inc. 6,239 435
McDonald's Corp. 14,016 436
Meritage Homes Corp. * 7,418 437
NIKE, Inc., Cl B 5,247 437
Nordstrom, Inc. 7,913 438
NVR, Inc. * 556 436
Office Depot, Inc. * 19,599 435
Pulte Homes, Inc. 5,984 441
Reebok International Ltd. 9,919 439
Ryland Group, Inc. (The) 7,075 439
Standard Pacific Corp. 6,092 440
Starbucks Corp. * 8,442 436
Time Warner, Inc. * 24,883 437
Toll Brothers, Inc. * 5,593 442
Urban Outfitters, Inc. * 9,180 440
-------
13,988
-------
CONSUMER STAPLES (6.1%)
Alberto-Culver Co. 10,068 482
Anheuser-Busch Cos., Inc. 10,159 481
ArcherDanielsMidland Co. 19,634 483
Dean Foods Co. * 14,075 483
Kimberly-Clark Corp. 7,335 482
Nash Finch Co. 12,631 480
Pepsiamericas, Inc. 21,474 486
Ralcorp Holdings, Inc. * 10,191 483
Ruddick Corp. 20,959 485
Sanderson Farms, Inc. 11,098 480
</Table>
<Table>
<Caption>
- -------------------------------------------------------
Shares or
Principal
Amount Value
- -------------------------------------------------------
CONSUMER STAPLES--CONTINUED
Sara Lee Corp. 21,874 $ 485
Wal-Mart Stores, Inc. 9,544 478
-------
5,788
-------
ENERGY (9.5%)
Ashland, Inc. 13,372 902
ChevronTexaco Corp. 15,339 894
Cimarex Energy Co. * 12,802 499
ConocoPhillips 8,423 908
Exxon Mobil Corp. 14,962 892
Frontier Oil Corp. 13,648 495
Lone Star Technologies, Inc.
* 12,593 497
Maverick Tube Corp. * 15,264 496
Noble Energy, Inc. 7,354 500
Overseas Shipholding Group,
Inc. 7,975 502
Patina Oil & Gas Corp. 12,489 500
Swift Energy Co. * 17,764 505
Valero Energy Corp. 12,303 901
Vintage Petroleum, Inc. 15,849 499
-------
8,990
-------
FINANCIALS (14.8%)
Allmerica Financial Corp. * 28,047 1,008
Allstate Corp. (The) 8,740 472
Chubb Corp. (The) 5,918 469
CIT Group, Inc. 12,480 474
Downey Financial Corp. 16,262 1,001
E*TRADE Financial Corp. * 39,397 473
Goldman Sachs Group, Inc.
(The) 4,268 469
Hartford Financial Services
Group, Inc. (The) 6,897 473
Horace Mann Educators Corp. 56,250 998
Lehman Brothers Holdings,
Inc. 4,987 470
Loews Corp. 6,388 470
MGIC Investment Corp. 7,587 468
Morgan Stanley 8,243 472
Ohio Casualty Corp. * 44,040 1,012
Philadelphia Consolidated
Holding Corp. * 13,022 1,010
Providian Financial Corp. * 27,399 470
Prudential Financial, Inc. 8,245 473
Selective Insurance Group,
Inc. 21,697 1,003
St. Paul Travelers Cos., Inc.
(The) 12,775 469
UnumProvident Corp. 27,559 469
</Table>
80
SCHEDULE OF PORTFOLIO INVESTMENTS
STI CLASSIC EQUITY FUNDS March 31, 2005 (Amounts in thousands, except shares)
STRATEGIC QUANTITATIVE EQUITY FUND -- CONCLUDED
<Table>
<Caption>
- -------------------------------------------------------
Shares or
Principal
Amount Value
- -------------------------------------------------------
FINANCIALS--CONTINUED
W.R. Berkley Corp. 20,289 $ 1,006
XL Capital Ltd., Cl A 6,488 470
-------
14,099
-------
HEALTH CARE (10.3%)
Becton, Dickinson & Co. 7,559 442
C.R. Bard, Inc. 6,517 444
Caremark Rx, Inc. * 11,097 441
Chemed Corp. 6,368 487
CIGNA Corp. 4,983 445
Coventry Health Care, Inc. * 7,142 487
Genzyme Corp. * 7,754 444
Hologic, Inc. * 15,244 486
Invitrogen Corp. * 7,017 486
Johnson & Johnson 6,587 442
Mentor Corp. 15,248 488
ResMed, Inc. * 8,661 488
Respironics, Inc. * 8,419 490
St. Jude Medical, Inc. * 12,301 443
Stryker Corp. 10,055 449
SurModics, Inc. * 15,287 488
TECHNE Corp. * 12,070 483
UnitedHealth Group, Inc. 4,602 439
Varian Medical Systems, Inc.
* 14,227 488
Waters Corp. * 12,185 436
Zimmer Holdings, Inc. * 5,818 453
-------
9,749
-------
INDUSTRIALS (24.6%)
American Standard Cos., Inc. 32,932 1,530
Artesyn Technologies, Inc. * 93,729 816
Brady Corp., Cl A 24,778 802
Burlington Northern Santa Fe
Corp. 28,361 1,530
CSX Corp. 36,644 1,526
Cummins, Inc. 21,592 1,519
DRS Technologies, Inc. * 18,945 805
FedEx Corp. 16,198 1,522
Granite Construction, Inc. 30,740 808
Harsco Corp. 13,450 802
J. B. Hunt Transport
Services, Inc. 18,301 801
Korn/Ferry International * 42,339 806
Labor Ready, Inc. * 42,677 796
Mesa Air Group, Inc. * 113,804 797
Mobile Mini, Inc. * 19,502 788
Norfolk Southern Corp. 41,189 1,526
Raytheon Co. 39,452 1,527
Swift Transportation Co.,
Inc. * 36,140 800
Teledyne Technologies, Inc. * 25,159 787
</Table>
<Table>
<Caption>
- -------------------------------------------------------
Shares or
Principal
Amount Value
- -------------------------------------------------------
INDUSTRIALS--CONTINUED
Teleflex, Inc. 15,794 $ 808
Textron, Inc. 20,454 1,526
Yellow Roadway Corp. * 13,670 800
-------
23,422
-------
INFORMATION TECHNOLOGY (12.1%)
Adobe Systems, Inc. 5,375 361
ANSYS, Inc. * 9,045 309
Apple Computer, Inc. * 8,682 362
Ascential Software Corp. * 16,549 307
Belden CDT, Inc. 13,822 307
Catapult Communications Corp.
* 14,619 312
CheckFree Corp. * 7,635 311
Citrix Systems, Inc. * 15,375 366
Coherent, Inc. * 9,093 307
Compuware Corp. * 50,986 367
Comverse Technology, Inc. * 14,426 364
EMC Corp. * 29,590 365
F5 Networks, Inc. * 6,263 316
Filenet Corp. * 13,459 307
Gateway 2000, Inc. * 93,715 378
Harmonic Lightwaves, Inc. * 32,694 313
Harris Corp. 12,619 411
Hyperion Solutions Corp. * 6,933 306
JDA Software Group, Inc. * 21,912 308
McDATA Corp. * 82,747 312
Mercury Interactive Corp. * 7,647 362
NVIDIA Corp. * 15,202 361
Parametric Technology Corp. * 66,646 373
Phoenix Technologies Ltd. * 33,188 316
Progress Software Corp. * 11,785 309
Sabre Holdings Corp., Cl A * 16,800 368
Siebel Systems, Inc. * 39,929 365
Sun Microsystems, Inc. * 90,424 364
Symantec Corp. * 16,885 360
Synaptics, Inc. * 13,227 307
THQ, Inc. * 10,871 306
VERITAS Software Corp. * 15,480 359
Wind River Systems, Inc. * 20,521 309
Yahoo!, Inc. * 10,770 365
-------
11,513
-------
MATERIALS (7.4%)
Air Products & Chemicals,
Inc. 24,151 1,528
Albemarle Corp. 22,194 807
FMC Corp. * 14,999 802
Lubrizol Corp. (The) 19,909 809
Lyondell Chemical Co. 28,552 797
</Table>
81
<Table>
<Caption>
- -------------------------------------------------------
Shares or
Principal
Amount Value
- -------------------------------------------------------
MATERIALS--CONTINUED
OM Group, Inc. * 26,514 $ 807
Rohm & Haas Co. 31,561 1,515
-------
7,065
-------
Total Common Stocks (Cost
$90,183) 94,614
-------
</Table>
<Table>
<Caption>
- -------------------------------------------------------
Shares or
Principal
Amount Value
- -------------------------------------------------------
REPURCHASE AGREEMENT (1.6%)
Merrill Lynch & Co., Inc.,
2.820%, dated 03/31/05, to
be repurchased on 04/01/05,
repurchase price $1,551,238
(collateralized by U.S.
Government Agencies,
5.500%, due 03/01/25; total
market value $1,586,988) $ 1,551 $ 1,551
-------
Total Repurchase Agreement
(Cost $1,551) 1,551
-------
Total Investments (Cost
$91,734) (a) -- 101.1% 96,165
Liabilities in excess of other
assets -- 1.1% (1,096)
-------
Net Assets -- 100.0% $95,069
=======
</Table>
See notes to schedules of portfolio investments and notes to financial
statements.
82
SCHEDULE OF PORTFOLIO INVESTMENTS
STI CLASSIC EQUITY FUNDS March 31, 2005 (Amounts in thousands, except shares)
TAX SENSITIVE GROWTH STOCK FUND
<Table>
<Caption>
- --------------------------------------------------------
Shares or
Principal
Amount Value
- --------------------------------------------------------
COMMON STOCKS (97.8%)
CONSUMER DISCRETIONARY (17.6%)
Chico's FAS, Inc. * 31,000 $ 876
eBay, Inc. * 28,000 1,043
Fortune Brands, Inc. 25,000 2,016
Home Depot, Inc. (The) 68,000 2,600
J. C. Penney Co., Inc. 45,000 2,336
Kohl's Corp. * 35,000 1,807
Liz Claiborne, Inc. 65,000 2,608
Lowe's Cos., Inc. 15,000 856
Marriott International, Inc.,
Cl A 27,000 1,805
NIKE, Inc., Cl B 25,000 2,083
Omnicom Group, Inc. 24,000 2,124
Staples, Inc. 130,000 4,087
Target Corp. 68,500 3,427
Walt Disney Co. (The) 62,500 1,796
--------
29,464
--------
CONSUMER STAPLES (5.6%)
PepsiCo, Inc. 73,000 3,871
Procter & Gamble Co. (The) 61,000 3,233
Wal-Mart Stores, Inc. 44,884 2,249
--------
9,353
--------
ENERGY (8.7%)
Apache Corp. (e) 68,250 4,179
BP PLC ADR 27,000 1,685
ChevronTexaco Corp. 27,000 1,574
Exxon Mobil Corp. 120,000 7,152
--------
14,590
--------
FINANCIALS (13.4%)
American Express Co. 50,180 2,578
Goldman Sachs Group, Inc.
(The) 7,000 770
Legg Mason, Inc. (e) 20,000 1,563
Marshall & Ilsley Corp. (e) 88,000 3,674
MBNA Corp. 137,700 3,381
SLM Corp. 72,000 3,588
U.S. Bancorp 115,000 3,314
Wells Fargo & Co. 59,000 3,528
--------
22,396
--------
HEALTH CARE (19.5%)
Becton, Dickinson & Co. 36,000 2,103
Biomet, Inc. 78,000 2,831
C.R. Bard, Inc. 35,000 2,383
Johnson & Johnson 89,732 6,026
Medtronic, Inc. 69,063 3,519
Patterson Cos., Inc. * (e) 62,000 3,097
Pfizer, Inc. 64,093 1,684
St. Jude Medical, Inc. * 81,000 2,916
</Table>
<Table>
<Caption>
- --------------------------------------------------------
Shares or
Principal
Amount Value
- --------------------------------------------------------
HEALTH CARE--CONTINUED
Stryker Corp. 30,000 $ 1,338
UnitedHealth Group, Inc. 52,100 4,969
Waters Corp. * 26,000 931
Zimmer Holdings, Inc. * 12,000 934
--------
32,731
--------
INDUSTRIALS (15.4%)
Danaher Corp. (e) 70,000 3,739
Eaton Corp. 39,000 2,551
Emerson Electric Co. 36,000 2,337
General Dynamics Corp. 23,000 2,462
General Electric Co. 194,844 7,026
Illinois Tool Works, Inc. 17,000 1,522
ITT Industries, Inc. 44,000 3,971
Raytheon Co. 59,000 2,283
--------
25,891
--------
INFORMATION TECHNOLOGY (14.0%)
Amdocs Ltd. * 36,000 1,022
CDW Corp. 35,000 1,984
Cisco Systems, Inc. * 60,179 1,077
Dell, Inc. * 68,000 2,613
Hewlett-Packard Co. 41,000 900
Intel Corp. 60,086 1,396
International Business
Machines Corp. 25,000 2,285
Microsoft Corp. 223,056 5,390
Oracle Corp. * 272,808 3,404
Texas Instruments, Inc. 71,000 1,810
VeriSign, Inc. * 36,000 1,033
Zebra Technology Corp., Cl A * 12,150 577
--------
23,491
--------
MATERIALS (3.6%)
Air Products & Chemicals, Inc. 44,000 2,785
Praxair, Inc. 68,000 3,254
--------
6,039
--------
Total Common Stocks (Cost
$128,981) 163,955
--------
WARRANTS (0.0%)
INFORMATION TECHNOLOGY (0.0%)
Lucent Technologies, Inc. 22,693 15
--------
Total Warrants (Cost $0) 15
--------
SHORT-TERM INVESTMENT (6.6%)
CSFB Enhanced Liquidity
Portfolio (f) 11,051,160 11,051
--------
Total Short-Term Investment
(Cost $11,051) 11,051
--------
</Table>
83
<Table>
<Caption>
- --------------------------------------------------------
Shares or
Principal
Amount Value
- --------------------------------------------------------
REPURCHASE AGREEMENT (1.6%)
BNP Paribas, 2.820%, dated
03/31/05, to be repurchased
on 04/01/05, repurchase
price $2,695,729
(collateralized by U.S.
Government Agencies, 3.675%,
due 02/15/10; total market
value $2,750,164) $ 2,696 $ 2,696
--------
Total Repurchase Agreement (Cost
$2,696) 2,696
--------
Total Investments (Cost
$142,728) (a) -- 106.0% 177,718
Liabilities in excess of other
assets -- (6.0)% (10,119)
--------
Net Assets -- 100.0% $167,599
========
</Table>
See notes to schedules of portfolio investments and notes to financial
statements.
84
SCHEDULE OF PORTFOLIO INVESTMENTS
STI CLASSIC EQUITY FUNDS March 31, 2005 (Amounts in thousands, except shares)
VALUE INCOME STOCK FUND
<Table>
<Caption>
- -------------------------------------------------------
Shares or
Principal
Amount Value
- -------------------------------------------------------
COMMON STOCKS (96.0%)
CONSUMER DISCRETIONARY (10.0%)
Dollar General Corp. 535,600 $ 11,735
Dow Jones & Co., Inc. 407,300 15,221
Gannett Co., Inc. (e) 221,050 17,481
Mattel, Inc. 554,650 11,842
May Department Stores Co.
(The) 292,900 10,843
Newell Rubbermaid, Inc.
(e) 536,568 11,772
Viacom, Inc., Cl B 392,950 13,686
----------
92,580
----------
CONSUMER STAPLES (10.2%)
Colgate-Palmolive Co. 312,700 16,314
General Mills, Inc. 190,700 9,373
H.J. Heinz Co. 280,850 10,347
Kimberly-Clark Corp. 232,150 15,259
Kraft Foods, Inc., Cl A
(e) 366,150 12,101
Molson Coors Brewing Co.,
Cl B (e) 177,050 13,663
PepsiCo, Inc. 323,600 17,160
----------
94,217
----------
ENERGY (6.5%)
BP PLC ADR 207,550 12,951
ChevronTexaco Corp. 275,700 16,076
Exxon Mobil Corp. 275,800 16,438
Marathon Oil Corp. (e) 311,400 14,611
----------
60,076
----------
FINANCIALS (23.8%)
A.G. Edwards, Inc. (e) 155,550 6,969
Alliance Capital
Management Holding LP 174,909 8,247
American Express Co. 130,700 6,714
AmSouth Bancorp 367,242 9,530
Astoria Financial Corp. 282,175 7,139
Bank of America Corp. 355,500 15,677
Bank of New York Co., Inc.
(The) 463,150 13,455
Citigroup, Inc. 446,000 20,042
Colonial BancGroup, Inc.
(The) 338,200 6,940
Comerica, Inc. 259,215 14,278
JPMorgan Chase & Co. 378,600 13,100
KeyCorp 297,874 9,666
Mellon Financial Corp. 514,468 14,683
Merrill Lynch & Co., Inc.
(e) 154,900 8,767
Northern Trust Corp. 235,250 10,219
</Table>
<Table>
<Caption>
- -------------------------------------------------------
Shares or
Principal
Amount Value
- -------------------------------------------------------
FINANCIALS--CONTINUED
PNC Financial Services
Group, Inc. (The) 195,150 $ 10,046
Provident Financial
Services, Inc. 398,050 6,807
Safeco Corp. 316,376 15,410
South Financial Group,
Inc. (The) 233,768 7,139
Wachovia Corp. 271,550 13,825
----------
218,653
----------
HEALTH CARE (6.3%)
Abbott Laboratories 409,400 19,087
Hillenbrand Industries,
Inc. 184,196 10,217
Johnson & Johnson 156,300 10,497
Wyeth 439,650 18,544
----------
58,345
----------
INDUSTRIALS (16.9%)
3M Co. (e) 252,950 21,677
Avery Dennison Corp. 168,708 10,448
Cintas Corp. (e) 243,100 10,042
Dover Corp. (e) 365,400 13,808
Emerson Electric Co. 235,200 15,272
General Electric Co. 557,850 20,116
Honeywell International,
Inc. 508,250 18,912
Lockheed Martin Corp. 246,600 15,057
Pall Corp. 341,231 9,254
Parker Hannifin Corp. 62,550 3,811
Pitney Bowes, Inc. 152,098 6,863
R.R. Donnelley & Sons Co. 335,876 10,620
----------
155,880
----------
INFORMATION TECHNOLOGY (5.6%)
Automatic Data Processing,
Inc. 244,750 11,001
Diebold, Inc. 181,450 9,953
Harris Corp. 112,600 3,676
Intersil Corp., Cl A (e) 475,800 8,241
Microsoft Corp. 175,600 4,244
Nokia Corp. ADR (e) 515,300 7,951
Tektronix, Inc. 266,150 6,529
----------
51,595
----------
MATERIALS (9.2%)
Air Products & Chemicals,
Inc. 171,150 10,832
Alcoa, Inc. (e) 455,350 13,838
Domtar, Inc. 557,781 4,719
E.I. du Pont de Nemours &
Co. 317,250 16,256
</Table>
85
<Table>
<Caption>
- -------------------------------------------------------
Shares or
Principal
Amount Value
- -------------------------------------------------------
MATERIALS--CONTINUED
International Paper Co.
(e) 385,450 $ 14,181
Rohm & Haas Co. (e) 219,300 10,526
Sappi Ltd. ADR 573,835 7,058
Valspar Corp. (The) 151,150 7,035
----------
84,445
----------
TELECOMMUNICATION SERVICES (5.3%)
BellSouth Corp. 721,900 18,979
Sprint Corp. (e) 504,200 11,471
Verizon Communications,
Inc. 521,810 18,524
----------
48,974
----------
UTILITIES (2.2%)
NiSource, Inc. (e) 204,800 4,667
Pepco Holdings, Inc. 207,638 4,358
Southern Co. (e) 208,950 6,652
Xcel Energy, Inc. 260,080 4,468
----------
20,145
----------
Total Common Stocks (Cost
$797,801) 884,910
----------
</Table>
<Table>
<Caption>
- -------------------------------------------------------
Shares or
Principal
Amount Value
- -------------------------------------------------------
SHORT-TERM INVESTMENT (10.4%)
CSFB Enhanced Liquidity
Portfolio (f) 95,770,048 $ 95,770
----------
Total Short-Term Investment
(Cost $95,770) 95,770
----------
REPURCHASE AGREEMENT (4.6%)
Merrill Lynch & Co., Inc.,
2.820%, dated 03/31/05,
to be repurchased on
04/01/05, repurchase
price $42,344,900
(collateralized by U.S.
Government Agencies,
4.500%-6.000%, due
03/01/13-03/01/35; total
market value
$43,189,273) $ 42,342 42,342
----------
Total Repurchase Agreement
(Cost $42,342) 42,342
----------
Total Investments (Cost
$935,913) (a) -- 111.0% 1,023,022
Liabilities in excess of
other assets -- (11.0)% (101,736)
----------
Net Assets -- 100.0% $ 921,286
==========
</Table>
See notes to schedules of portfolio investments and notes to financial
statements.
86
NOTES TO SCHEDULES OF PORTFOLIO INVESTMENTS
STI CLASSIC EQUITY FUNDS March 31, 2005
* Non-income producing security.
(a) See notes to financial statements for unrealized appreciation/(depreciation)
of securities on a tax basis.
(b) Market value is less than five hundred dollars.
(c) Affiliate Investment.
(d) Rule 144A, Section 4(2) or other security which is restricted as to resale
to institutional investors. The Fund's advisor has deemed this security to
be liquid based upon procedures approved by the Board of Trustees.
(e) This security or a partial position of the security was on loan at March
31, 2005. The total value of securities on loan at March 31, 2005 in
thousands was $66,844, $133,887, $127,210, $18,741, $22,795, $53,680,
$23,109, $129,791, $86,072, $10,860 and $93,658 for Balanced, Capital
Appreciation, Growth and Income, International Equity, International Equity
Index, Mid-Cap Equity, Mid-Cap Value Equity, Small Cap Growth, Small Cap
Value Equity, Tax Sensitive Growth and Value Income Stock Funds,
respectively.
(f) This security was purchased with cash collateral held from securities
lending.
The following abbreviations are used in these Schedules of Portfolio
Investments:
<Table>
ADR American Depository Receipt
Cl Class
FNMA Security insured by Fannie Mae
LLC Limited Liability Company
LP Limited Partnership
REIT Real Estate Investment Trust
Ser Series
</Table>
87
(This page intentionally left blank)
88
STATEMENTS OF ASSETS AND LIABILITIES (000)
STI CLASSIC EQUITY FUNDS March 31, 2005
<Table>
<Caption>
Aggressive Capital Emerging
Growth Stock Balanced Appreciation Growth Stock
Fund Fund Fund Fund
------------ -------- ------------ ------------
Assets:
Investments, at Cost...................................... $62,335 $308,310 $1,735,626 $18,993
======= ======== ========== =======
Investments, at Value..................................... $65,389 $319,589 $1,849,953 $20,719
Cash...................................................... -- -- -- --
Foreign Currency, at Value (Cost $10,315; $2,455,
respectively)........................................... -- -- -- --
Interest and Dividends Receivable......................... 6 1,136 1,912 2
Receivable for Capital Shares Sold........................ -- 65 10 --
Receivable for Investment Securities Sold................. 75 3,084 11,576 162
Reclaims Receivable....................................... -- -- -- --
Prepaid Expenses and Other Assets......................... 16 10 47 --
------- -------- ---------- -------
Total Assets.............................................. 65,486 323,884 1,863,498 20,883
------- -------- ---------- -------
Liabilities:
Payable to Custodian...................................... -- 1,626 -- --
Payable for Investment Securities Purchased............... 489 2,836 26,191 261
Payable for Capital Shares Redeemed....................... 4 129 311 --
Payable upon Return of Securities Loaned.................. -- 68,636 139,174 --
Investment Advisory Fees Payable.......................... 51 203 1,661 2
Administration Fees Payable............................... 1 6 39 --
Distribution and Service Fees Payable..................... 5 42 142 --
Custodian Fees Payable.................................... 1 4 6 2
Accrued Expenses.......................................... 12 3 80 4
------- -------- ---------- -------
Total Liabilities......................................... 563 73,485 167,604 269
------- -------- ---------- -------
Total Net Assets.......................................... $64,923 $250,399 $1,695,894 $20,614
======= ======== ========== =======
Net Assets:
Capital................................................... $66,938 $230,827 $1,549,008 $20,835
Accumulated Net Investment Income (Loss).................. (15) 149 -- (19)
Accumulated Net Realized Gains (Losses) on Investments and
Foreign Currency Transactions........................... (5,054) 8,144 32,559 (1,928)
Net Unrealized Appreciation (Depreciation) on Investments
and Foreign Currency Transactions....................... 3,054 11,279 114,327 1,726
------- -------- ---------- -------
Total Net Assets.......................................... $64,923 $250,399 $1,695,894 $20,614
======= ======== ========== =======
NET ASSETS:
T Shares.................................................. $58,988 $195,680 $1,493,213 $20,494
A Shares.................................................. $ 140 $ 8,693 $ 126,895 $ 86
L Shares.................................................. $ 5,795 $ 46,026 $ 75,786 $ 34
B Shares.................................................. N/A N/A N/A N/A
SHARES OUTSTANDING:
T Shares.................................................. 5,967 15,922 122,214 2,184
A Shares.................................................. 14 704 10,878 9
L Shares.................................................. 592 3,774 6,867 4
B Shares.................................................. N/A N/A N/A N/A
NET ASSET VALUE AND REDEMPTION PRICE PER SHARE:
T Shares.................................................. $ 9.89 $ 12.29 $ 12.22 $ 9.38
A Shares.................................................. $ 9.84 $ 12.35 $ 11.66 $ 9.34
L Shares*................................................. $ 9.78 $ 12.20 $ 11.04 $ 9.29
B Shares.................................................. N/A N/A N/A N/A
OFFERING PRICE PER SHARE: (100%/(100%-maximum sales charge)
of net asset value adjusted to the nearest cent)
T Shares.................................................. $ 9.89 $ 12.29 $ 12.22 $ 9.38
A Shares.................................................. $ 10.22 $ 12.83 $ 12.11 $ 9.70
L Shares.................................................. $ 9.78 $ 12.20 $ 11.04 $ 9.29
B Shares.................................................. N/A N/A N/A N/A
Maximum Sales Charge -- A Shares............................ 3.75% 3.75% 3.75% 3.75%
</Table>
Amounts designated as "--" are $0 or have been rounded to $0.
* Redemption Price Per Share Varies by Length of Time Shares are Held.
89
<Table>
<Caption>
Growth and International Life Vision Life Vision Life Vision Life Vision
Income International Equity Aggressive Conservative Growth and Moderate Mid-Cap
Fund Equity Fund Index Fund Growth Fund Fund Income Fund Growth Fund Equity Fund
---------- ------------- ------------- ----------- ------------ ----------- ----------- -----------
$1,056,791 $413,377 $458,832 $44,032 $6,409 $ 95,597 $140,773 $259,148
========== ======== ======== ======= ====== ======== ======== ========
$1,286,649 $504,815 $564,115 $50,827 $6,615 $107,702 $155,298 $297,607
-- 323 -- -- -- -- -- --
-- 10,317 2,447 -- -- -- -- --
2,063 2,035 1,332 3 15 82 221 358
24 2 4 5 20 12 5 4
24,636 11,194 -- -- -- -- -- 1,772
-- 206 97 -- -- -- -- --
31 9 10 1 25 3 4 5
---------- -------- -------- ------- ------ -------- -------- --------
1,313,403 528,901 568,005 50,836 6,675 107,799 155,528 299,746
---------- -------- -------- ------- ------ -------- -------- --------
-- -- -- -- -- -- -- --
37,281 10,835 12,037 -- -- -- -- 520
202 3 6 6 -- 28 4 18
130,649 19,959 24,164 -- -- -- -- 55,163
861 530 358 5 1 13 19 234
21 11 12 1 -- 2 4 5
84 10 8 4 4 13 10 18
7 40 16 3 10 3 3 5
97 40 48 2 5 4 8 10
---------- -------- -------- ------- ------ -------- -------- --------
169,202 31,428 36,649 21 20 63 48 55,973
---------- -------- -------- ------- ------ -------- -------- --------
$1,144,201 $497,473 $531,356 $50,815 $6,655 $107,736 $155,480 $243,773
========== ======== ======== ======= ====== ======== ======== ========
$ 897,536 $479,058 $503,098 $45,480 $6,403 $ 98,031 $142,169 $216,794
480 1,301 (2,610) 1 4 9 50 52
16,327 (74,311) (74,402) (1,461) 42 (2,409) (1,264) (11,532)
229,858 91,425 105,270 6,795 206 12,105 14,525 38,459
---------- -------- -------- ------- ------ -------- -------- --------
$1,144,201 $497,473 $531,356 $50,815 $6,655 $107,736 $155,480 $243,773
========== ======== ======== ======= ====== ======== ======== ========
$1,010,717 $480,731 $517,993 $43,283 $ 414 $ 87,520 $132,522 $214,660
$ 44,743 $ 8,480 $ 7,600 $ 2,080 $ 606 $ 3,575 $ 8,161 $ 14,556
$ 88,741 $ 8,248 $ 5,763 N/A N/A N/A N/A $ 14,557
N/A N/A N/A $ 5,452 $5,635 $ 16,641 $ 14,797 N/A
62,884 40,850 40,374 3,909 37 7,673 12,635 17,835
2,760 729 599 188 55 314 779 1,257
5,583 749 466 N/A N/A N/A N/A 1,346
N/A N/A N/A 496 508 1,461 1,415 N/A
$ 16.07 $ 11.77 $ 12.83 $ 11.07 $11.09 $ 11.41 $ 10.49 $ 12.03
$ 16.21 $ 11.64 $ 12.69 $ 11.05 $11.09 $ 11.39 $ 10.48 $ 11.57
$ 15.89 $ 11.01 $ 12.37 N/A N/A N/A N/A $ 10.81
N/A N/A N/A $ 10.98 $11.09 $ 11.39 $ 10.46 N/A
$ 16.07 $ 11.77 $ 12.83 $ 11.07 $11.09 $ 11.41 $ 10.49 $ 12.03
$ 16.84 $ 12.09 $ 13.18 $ 11.48 $11.52 $ 11.83 $ 10.89 $ 12.02
$ 15.89 $ 11.01 $ 12.37 N/A N/A N/A N/A $ 10.81
N/A N/A N/A $ 10.98 $11.09 $ 11.39 $ 10.46 N/A
3.75% 3.75% 3.75% 3.75% 3.75% 3.75% 3.75% 3.75%
</Table>
See notes to financial statements.
90
STATEMENTS OF ASSETS AND LIABILITIES (000)
STI CLASSIC EQUITY FUNDS March 31, 2005
<Table>
<Caption>
Mid-Cap Small Cap
Value Equity Growth Stock
Fund Fund
------------ ------------
Assets:
Investments, at Cost...................................... $227,068 $1,006,237
======== ==========
Investments, at Value..................................... $238,620 $1,155,399
Cash...................................................... -- 4
Interest and Dividends Receivable......................... 319 396
Receivable for Capital Shares Sold........................ 1 101
Receivable for Investment Securities Sold................. 3,981 4,213
Prepaid Expenses and Other Assets......................... 3 26
-------- ----------
Total Assets.............................................. 242,924 1,160,139
-------- ----------
Liabilities:
Payable for Fund Overdraft................................ -- --
Payable to Custodian...................................... -- 553
Payable for Investment Securities Purchased............... 1,422 8,939
Payable for Capital Shares Redeemed....................... 21 72
Payable upon Return of Securities Loaned.................. 23,542 134,387
Investment Advisory Fees Payable.......................... 213 1,014
Administration Fees Payable............................... 5 23
Distribution and Service Fees Payable..................... 5 46
Custodian Fees Payable.................................... 3 9
Accrued Expenses.......................................... 13 45
-------- ----------
Total Liabilities......................................... 25,224 145,088
-------- ----------
Total Net Assets.......................................... $217,700 $1,015,051
======== ==========
Net Assets:
Capital................................................... $195,783 $ 810,396
Accumulated Net Investment Income (Loss).................. 12 --
Accumulated Net Realized Gains (Losses) on Investments.... 10,353 55,493
Net Unrealized Appreciation (Depreciation) on
Investments............................................. 11,552 149,162
-------- ----------
Total Net Assets.......................................... $217,700 $1,015,051
======== ==========
NET ASSETS:
T Shares.................................................. $209,088 $ 940,775
A Shares.................................................. $ 1,724 $ 38,954
L Shares.................................................. $ 6,888 $ 35,322
SHARES OUTSTANDING:
T Shares.................................................. 17,040 47,060
A Shares.................................................. 141 1,992
L Shares.................................................. 564 1,909
NET ASSET VALUE AND REDEMPTION PRICE PER SHARE:
T Shares.................................................. $ 12.27 $ 19.99
A Shares.................................................. $ 12.24 $ 19.56
L Shares*................................................. $ 12.21 $ 18.51
OFFERING PRICE PER SHARE: (100%/(100%-maximum sales charge)
of net asset value adjusted to the nearest cent)
T Shares.................................................. $ 12.27 $ 19.99
A Shares.................................................. $ 12.72 $ 20.32
L Shares.................................................. $ 12.21 $ 18.51
Maximum Sales Charge -- A Shares............................ 3.75% 3.75%
</Table>
Amounts designated as "--" are $0 or have been rounded to $0.
* Redemption Price Per Share Varies by Length of Time Shares are Held.
91
<Table>
<Caption>
Small Cap Strategic Tax Sensitive
Value Equity Quantitative Growth Value Income
Fund Equity Fund Stock Fund Stock Fund
------------ ------------ ------------- ------------
$639,480 $ 91,734 $ 142,728 $ 935,913
======== ======== ========= ==========
$863,406 $ 96,165 $ 177,718 $1,023,022
-- 47 -- --
967 60 217 1,200
4 1 -- 16
3,428 31,971 3,654 13,636
23 2 54 26
-------- -------- --------- ----------
867,828 128,246 181,643 1,037,900
-------- -------- --------- ----------
3,694 -- -- --
-- -- -- --
5 33,083 2,707 19,966
67 -- 44 112
88,018 -- 11,051 95,770
780 80 123 627
18 2 4 21
11 1 60 67
4 8 3 5
47 3 52 46
-------- -------- --------- ----------
92,644 33,177 14,044 116,614
-------- -------- --------- ----------
$775,184 $ 95,069 $ 167,599 $ 921,286
======== ======== ========= ==========
$498,812 $ 81,672 $ 344,302 $ 921,029
288 (19) 528 2
52,158 8,985 (212,221) (86,854)
223,926 4,431 34,990 87,109
-------- -------- --------- ----------
$775,184 $ 95,069 $ 167,599 $ 921,286
======== ======== ========= ==========
$726,904 $ 93,204 $ 98,982 $ 792,677
$ 4,616 $ 407 $ 667 $ 75,462
$ 43,664 $ 1,458 $ 67,950 $ 53,147
36,610 7,035 4,100 62,965
234 31 28 6,011
2,245 112 2,997 4,275
$ 19.86 $ 13.25 $ 24.14 $ 12.59
$ 19.75 $ 13.18 $ 24.02 $ 12.56
$ 19.45 $ 13.03 $ 22.67 $ 12.43
$ 19.86 $ 13.25 $ 24.14 $ 12.59
$ 20.52 $ 13.69 $ 24.96 $ 13.05
$ 19.45 $ 13.03 $ 22.67 $ 12.43
3.75% 3.75% 3.75% 3.75%
</Table>
See notes to financial statements.
92
STATEMENTS OF OPERATIONS (000)
STI CLASSIC EQUITY FUNDS For the Periods Indicated
<Table>
<Caption>
Aggressive Growth Balanced
Stock Fund Fund
---------------------- ---------------------
06/01/04- 02/23/04*- 06/01/04- 06/01/03-
03/31/05 05/31/04 03/31/05 05/31/04
--------- ---------- --------- ---------
Investment Income:
Dividend Income........................................... $ 131 $ 10 $ 1,938 $ 1,484
Interest Income........................................... 29 4 4,565 6,593
Security Lending Income................................... -- -- 58 107
Less: Foreign Taxes Withheld.............................. -- -- -- --
------- ---- ------- --------
Total Investment Income................................... 160 14 6,561 8,184
------- ---- ------- --------
Expenses:
Investment Advisory Fees.................................. 468 36 2,330 3,091
Administration, Fund Accounting and Transfer Agent Fees... 12 2 86 223
Distribution Fees -- A Shares............................. -- -- 21 25
Distribution and Service Fees -- L Shares................. 18 -- 464 713
Transfer Agent Shareholder Servicing Fees................. -- -- 1 9
Custodian Fees............................................ 10 -- 12 12
Professional Fees......................................... 1 -- 9 13
Insurance Fees............................................ -- -- 6 --
Offering Costs............................................ 14 7 -- --
Registration Fees......................................... 13 -- 15 10
Transfer Agent Out of Pocket Expenses..................... 17 -- 15 11
Transfer Agent Fees -- T Shares........................... 2 1 2 16
Transfer Agent Fees -- A Shares........................... 3 1 3 19
Transfer Agent Fees -- L Shares........................... 2 1 15 95
Printing Fees............................................. -- -- 18 11
Trustees' Fees............................................ -- -- 3 3
Other Expenses............................................ 2 -- 9 9
------- ---- ------- --------
Total Expenses............................................ 562 48 3,009 4,260
Less: Investment Advisory Fees Waived................... (83) (10) (73) (91)
Less: Fees Reimbursed by Distributor.................... -- (1) -- --
Less: Distribution Fees Waived or Fees Reimbursed -- A
Shares................................................. (3) (1) (2) (15)
Less: Distribution and Service Fees Waived or Fees
Reimbursed -- L Shares................................. (3) (1) (8) (41)
Expense Offset -- Insurance Premiums.................... -- -- (3) --
------- ---- ------- --------
Net Expenses.............................................. 473 35 2,923 4,113
------- ---- ------- --------
Net Investment Income (Loss).............................. (313) (21) 3,638 4,071
------- ---- ------- --------
Net Realized and Unrealized Gain (Loss) on Investments and
Foreign Currency Transactions:
Net Realized Gain (Loss) on Investments Sold and Foreign
Currency Transactions................................... (1,571) (39) 8,294 26,469
Net Change in Unrealized Appreciation (Depreciation) on
Investments and Foreign Currency Transactions........... 710 389 (2,297) (17,586)
------- ---- ------- --------
Total Net Realized and Unrealized Gain (Loss) on
Investments and Foreign Currency Transactions........... (861) 350 5,997 8,883
------- ---- ------- --------
Change in Net Assets from Operations...................... $(1,174) $329 $ 9,635 $ 12,954
======= ==== ======= ========
</Table>
* Commencement of operations.
Amounts designated as "--" are $0 or have been rounded to $0.
93
<Table>
<Caption>
Capital Appreciation Emerging Growth Growth and International
Fund Stock Fund Income Fund Equity Fund
- --------------------- ---------------------- --------------------- ---------------------
06/01/04- 06/01/03- 06/01/04- 02/23/04*- 06/01/04- 06/01/03- 06/01/04- 06/01/03-
03/31/05 05/31/04 03/31/05 05/31/04 03/31/05 05/31/04 03/31/05 05/31/04
- --------- --------- --------- ---------- --------- --------- --------- ---------
$20,869 $ 13,459 $ 17 $ 2 $ 17,665 $ 17,050 $ 8,176 $ 7,134
747 356 9 2 -- 106 172 2
36 185 -- -- 31 83 154 128
(4) -- -- -- (13) (38) (884) (787)
------- -------- ------- ----- -------- -------- ------- -------
21,648 14,000 26 4 17,683 17,201 7,618 6,477
------- -------- ------- ----- -------- -------- ------- -------
16,606 16,536 173 28 7,265 7,647 4,272 3,256
498 986 5 2 277 582 115 179
777 990 -- -- 94 105 21 24
738 1,030 -- -- 776 910 66 70
4 38 -- -- 2 23 1 7
23 39 7 -- 16 23 213 165
61 61 -- -- 36 38 16 12
35 -- -- -- 19 -- 8 --
-- -- 14 7 -- -- -- --
28 40 4 -- 18 21 9 5
76 48 2 -- 41 28 16 9
2 16 2 1 2 16 2 16
16 109 3 1 7 48 3 23
30 192 3 1 26 160 5 31
104 48 1 -- 63 30 26 9
17 15 -- -- 10 9 4 3
50 41 -- -- 19 29 40 17
------- -------- ------- ----- -------- -------- ------- -------
19,065 20,189 214 40 8,671 9,669 4,817 3,826
(289) (284) (38) (9) -- -- -- --
-- -- -- (1) -- -- -- --
(20) (140) (3) (1) (19) (74) (2) (16)
(10) (60) (3) (1) (49) (217) (3) (23)
(15) -- -- -- (7) -- (3) --
------- -------- ------- ----- -------- -------- ------- -------
18,731 19,705 170 28 8,596 9,378 4,809 3,787
------- -------- ------- ----- -------- -------- ------- -------
2,917 (5,705) (144) (24) 9,087 7,823 2,809 2,690
------- -------- ------- ----- -------- -------- ------- -------
32,759 240,042 (1,750) (178) 70,618 54,492 13,245 12,672
(23,096) (77,211) 1,765 (39) 38,394 99,001 47,096 42,092
------- -------- ------- ----- -------- -------- ------- -------
9,663 162,831 15 (217) 109,012 153,493 60,341 54,764
------- -------- ------- ----- -------- -------- ------- -------
$12,580 $157,126 $ (129) $(241) $118,099 $161,316 $63,150 $57,454
======= ======== ======= ===== ======== ======== ======= =======
</Table>
See notes to financial statements.
94
STATEMENTS OF OPERATIONS (000)
STI CLASSIC EQUITY FUNDS For the Periods Indicated
<Table>
<Caption>
International Equity Life Vision Aggressive
Index Fund Growth Fund
--------------------- -----------------------
06/01/04- 06/01/03- 06/01/04- 06/01/03-
03/31/05 05/31/04 03/31/05 05/31/04
--------- --------- ---------- ----------
Investment Income:
Dividend Income (1)....................................... $ 6,693 $ 8,397 $ 604 $ 242
Interest Income........................................... 176 -- -- --
Security Lending Income................................... 153 187 -- --
Less: Foreign Taxes Withheld.............................. (693) (921) -- --
------- ------- ------ ------
Total Investment Income................................... 6,329 7,663 604 242
------- ------- ------ ------
Expenses:
Investment Advisory Fees.................................. 3,208 2,929 98 95
Administration, Fund Accounting and Transfer Agent Fees... 120 223 13 26
Distribution Fees -- A Shares............................. 37 56 6 1
Distribution and Service Fees -- L Shares................. 47 43
Distribution Fees -- B Shares............................. 42 30
Transfer Agent Shareholder Servicing Fees................. 1 9 -- 1
Custodian Fees............................................ 300 207 7 1
Professional Fees......................................... 17 15 2 2
Insurance Fees............................................ 8 -- 1 --
Registration Fees......................................... 10 8 2 1
Transfer Agent Out of Pocket Expenses..................... 15 11 4 1
Transfer Agent Fees -- T Shares........................... 2 16 2 16
Transfer Agent Fees -- A Shares........................... 4 25 2 5
Transfer Agent Fees -- L Shares........................... 3 21
Transfer Agent Fees -- B Shares........................... 3 18
Printing Fees............................................. 25 11 3 1
Trustees' Fees............................................ 4 3 -- --
Other Expenses............................................ 61 33 -- --
------- ------- ------ ------
Total Expenses............................................ 3,862 3,610 185 198
Less: Investment Advisory Fees Waived................... (318) (278) (51) (51)
Less: Fees Reimbursed by Distributor.................... -- -- -- --
Less: Distribution Fees Waived or Fees Reimbursed -- A
Shares................................................. -- (5) (4) (5)
Less: Distribution and Service Fees Waived or Fees
Reimbursed -- L Shares................................. (2) (14)
Less: Distribution Fees Waived -- B Shares.............. (10) (24)
Expense Offset -- Insurance Premiums.................... (3) -- -- --
------- ------- ------ ------
Net Expenses.............................................. 3,539 3,313 120 118
------- ------- ------ ------
Net Investment Income (Loss).............................. 2,790 4,350 484 124
------- ------- ------ ------
Net Realized and Unrealized Gain (Loss) on Investments and
Foreign Currency Transactions:
Capital Gain Received from Investments in Affiliated
Investment Companies (1)................................ -- -- 534 --
Net Realized Gain (Loss) on Investments Sold (1) and
Foreign Currency Transactions........................... (1,347) 3,571 478 325
Net Change in Unrealized Appreciation (Depreciation) on
Investments and Foreign Currency Transactions (1)....... 67,094 82,007 2,602 6,169
------- ------- ------ ------
Total Net Realized and Unrealized Gain (Loss) on
Investments and Foreign Currency Transactions........... 65,747 85,578 3,614 6,494
------- ------- ------ ------
Change in Net Assets from Operations...................... $68,537 $89,928 $4,098 $6,618
======= ======= ====== ======
</Table>
(1) Dividend income, capital gain from investments in affiliated investment
companies, net realized gain on securities sold and net change in unrealized
appreciation on investments for the Life Vision Funds are attributable to
the underlying investments in affiliated investment companies.
Amounts designated as "--" are $0 or have been rounded to $0.
95
<Table>
<Caption>
Life Vision Life Vision Life Vision Mid-Cap
Conservative Fund Growth and Income Fund Moderate Growth Fund Equity Fund
- --------------------- ----------------------- --------------------- ---------------------
06/01/04- 06/01/03- 06/01/04- 06/01/03- 06/01/04- 06/01/03- 06/01/04- 06/01/03-
03/31/05 05/31/04 03/31/05 05/31/04 03/31/05 05/31/04 03/31/05 05/31/04
- --------- --------- ---------- ---------- --------- --------- --------- ---------
$159 $ 97 $1,717 $ 1,312 $3,145 $ 2,283 $ 3,181 $ 3,381
-- -- -- -- -- -- 92 56
-- -- -- -- -- -- 59 142
-- -- -- -- -- -- (26) --
---- ---- ------ ------- ------ ------- ------- -------
159 97 1,717 1,312 3,145 2,283 3,306 3,579
---- ---- ------ ------- ------ ------- ------- -------
12 10 210 201 310 301 2,064 2,201
2 3 29 55 42 83 61 131
1 1 11 2 21 6 58 63
125 153
45 37 126 78 118 95
-- -- -- 2 -- 3 -- 5
10 -- 8 2 8 3 10 14
-- -- 4 4 5 5 8 9
-- -- 2 -- 3 -- 5 --
3 -- 3 2 5 3 15 4
2 -- 6 3 7 4 12 6
1 7 2 16 2 16 2 16
2 5 2 5 2 5 4 29
7 45
3 17 4 21 3 21
-- -- 7 3 8 4 14 7
-- -- 1 1 1 1 2 2
1 -- 3 1 6 4 6 4
---- ---- ------ ------- ------ ------- ------- -------
82 80 418 396 541 554 2,393 2,689
(22) (6) (93) (90) (136) (128) (37) (48)
(1) (7) -- -- -- -- -- --
(2) (5) (5) (6) (12) (7) (4) (25)
(6) (36)
(12) (26) (28) (39) (38) (43)
-- -- (1) -- (1) -- (2) --
---- ---- ------ ------- ------ ------- ------- -------
45 36 291 261 354 376 2,344 2,580
---- ---- ------ ------- ------ ------- ------- -------
114 61 1,426 1,051 2,791 1,907 962 999
---- ---- ------ ------- ------ ------- ------- -------
31 1 873 8 1,309 12 -- --
22 9 1,933 2,565 4,204 2,529 17,287 22,721
93 95 3,161 8,207 1,375 9,804 15,850 6,629
---- ---- ------ ------- ------ ------- ------- -------
146 105 5,967 10,780 6,888 12,345 33,137 29,350
---- ---- ------ ------- ------ ------- ------- -------
$260 $166 $7,393 $11,831 $9,679 $14,252 $34,099 $30,349
==== ==== ====== ======= ====== ======= ======= =======
</Table>
See notes to financial statements.
96
STATEMENTS OF OPERATIONS (000)
STI CLASSIC EQUITY FUNDS For the Periods Indicated
<Table>
<Caption>
Mid-Cap Value Small Cap Growth
Equity Fund Stock Fund
--------------------- ---------------------
06/01/04- 06/01/03- 06/01/04- 06/01/03-
03/31/05 05/31/04 03/31/05 05/31/04
--------- --------- --------- ---------
Investment Income:
Dividend Income........................................... $ 3,626 $ 2,263 $ 4,174 $ 2,490
Interest Income........................................... -- 92 434 95
Security Lending Income................................... 152 74 1,192 826
Less: Foreign Taxes Withheld.............................. (9) (10) (11) (13)
------- ------- -------- --------
Total Investment Income................................... 3,769 2,419 5,789 3,398
------- ------- -------- --------
Expenses:
Investment Advisory Fees.................................. 1,948 1,691 8,788 9,361
Administration, Fund Accounting and Transfer Agent Fees... 52 93 261 558
Distribution Fees -- A Shares............................. 4 1 184 157
Distribution and Service Fees -- L Shares................. 63 73 314 370
Transfer Agent Shareholder Servicing Fees................. -- 4 2 22
Custodian Fees............................................ 10 8 26 70
Professional Fees......................................... 7 6 35 36
Insurance Fees............................................ 3 -- 18 --
Offering Costs............................................ -- -- -- --
Registration Fees......................................... 10 3 23 19
Transfer Agent Out of Pocket Expenses..................... 9 5 46 27
Transfer Agent Fees -- T Shares........................... 2 16 3 21
Transfer Agent Fees -- A Shares........................... 2 5 7 41
Transfer Agent Fees -- L Shares........................... 5 29 9 56
Printing Fees............................................. 12 5 63 30
Trustees' Fees............................................ 2 1 9 8
Other Expenses............................................ 7 4 37 25
------- ------- -------- --------
Total Expenses............................................ 2,136 1,944 9,825 10,801
Less: Investment Advisory Fees Waived................... (156) (135) -- --
Less: Distribution Fees Waived or Fees Reimbursed -- A
Shares................................................. (2) (5) (45) (85)
Less: Distribution and Service Fees Waived or Fees
Reimbursed -- L Shares................................. (24) (54) (5) (33)
Expense Offset -- Insurance Premiums.................... (1) -- (7) --
------- ------- -------- --------
Net Expenses.............................................. 1,953 1,750 9,768 10,683
------- ------- -------- --------
Net Investment Income (Loss).............................. 1,816 669 (3,979) (7,285)
------- ------- -------- --------
Net Realized and Unrealized Gain (Loss) on Investments:
Net Realized Gain (Loss) on Investments Sold.............. 27,508 18,863 105,648 145,086
Net Change in Unrealized Appreciation (Depreciation) on
Investments............................................. (5,309) 12,849 (13,579) 80,171
------- ------- -------- --------
Total Net Realized and Unrealized Gain (Loss) on
Investments............................................. 22,199 31,712 92,069 225,257
------- ------- -------- --------
Change in Net Assets from Operations...................... $24,015 $32,381 $ 88,090 $217,972
======= ======= ======== ========
</Table>
* Commencement of operations.
Amounts designated as "--" are $0 or have been rounded to $0.
97
<Table>
<Caption>
Small Cap Strategic Quantitative Tax Sensitive Value Income
Value Equity Fund Equity Fund Growth Stock Fund Stock Fund
- --------------------- ---------------------- --------------------- ---------------------
06/01/04- 06/01/03- 06/01/04- 08/07/03*- 06/01/04- 06/01/03- 06/01/04- 06/01/03-
03/31/05 05/31/04 03/31/05 05/31/04 03/31/05 05/31/04 03/31/05 05/31/04
- --------- --------- --------- ---------- --------- --------- --------- ---------
$ 8,578 $ 10,408 $ 615 $ 335 $ 2,807 $ 2,605 $17,156 $ 18,485
122 216 11 6 41 36 507 383
478 428 -- -- 2 37 53 85
(161) (215) -- -- -- -- (21) (127)
- -------- -------- ------- ------ -------- ------- ------- --------
9,017 10,837 626 341 2,850 2,678 17,695 18,826
- -------- -------- ------- ------ -------- ------- ------- --------
7,224 7,677 782 432 1,874 3,168 5,943 6,572
216 458 23 26 59 189 255 563
12 4 1 -- 2 1 204 235
376 434 13 7 664 1,054 462 561
2 18 -- 1 -- 7 2 22
14 39 24 1 9 7 16 22
27 30 3 2 6 10 32 34
15 -- 2 -- 4 -- 17 --
-- -- 5 23 -- -- -- --
32 16 4 -- 15 10 24 24
29 23 3 1 38 9 38 27
2 16 2 11 2 16 2 16
2 6 2 5 2 5 10 64
13 86 2 5 22 171 15 97
45 23 4 2 21 8 50 27
7 7 1 -- 2 3 9 9
20 21 4 1 6 8 13 30
- -------- -------- ------- ------ -------- ------- ------- --------
8,036 8,858 875 517 2,726 4,666 7,092 8,303
-- -- (101) (77) (46) -- -- --
(5) (7) (2) (5) (2) (5) (3) (23)
(282) (81) (2) (4) (13) (98) (4) (25)
(6) -- (1) -- (2) -- (7) --
- -------- -------- ------- ------ -------- ------- ------- --------
7,743 8,770 769 431 2,663 4,563 7,078 8,255
- -------- -------- ------- ------ -------- ------- ------- --------
1,274 2,067 (143) (90) 187 (1,885) 10,617 10,571
- -------- -------- ------- ------ -------- ------- ------- --------
68,368 66,912 11,057 3,973 26,996 31,183 105,214 71,412
51,510 113,873 1,327 3,104 (21,017) 2,584 (18,053) 62,760
- -------- -------- ------- ------ -------- ------- ------- --------
119,878 180,785 12,384 7,077 5,979 33,767 87,161 134,172
- -------- -------- ------- ------ -------- ------- ------- --------
$121,152 $182,852 $12,241 $6,987 $ 6,166 $31,882 $97,778 $144,743
======== ======== ======= ====== ======== ======= ======= ========
</Table>
See notes to financial statements.
98
STATEMENTS OF CHANGES IN NET ASSETS (000)
STI CLASSIC EQUITY FUNDS For the Periods Indicated
<Table>
<Caption>
Aggressive Growth Balanced
Stock Fund Fund
----------------------- -----------------------------------
06/01/04- 02/23/04*- 06/01/04- 06/01/03- 06/01/02-
03/31/05 05/31/04 03/31/05 05/31/04 05/31/03
--------- ---------- --------- --------- ---------
Operations:
Net Investment Income (Loss).............................. $ (313) $ (21) $ 3,638 $ 4,071 $ 4,261
Net Realized Gain (Loss) on Investments Sold and Foreign
Currency Transactions................................... (1,571) (39) 8,294 26,469 (22,027)
Net Change in Unrealized Appreciation (Depreciation) on
Investments and Foreign Currency Transactions........... 710 389 (2,297) (17,586) 14,697
------- ------- -------- -------- --------
Change in Net Assets from Operations...................... (1,174) 329 9,635 12,954 (3,069)
------- ------- -------- -------- --------
Dividends and Distributions to Shareholders:
Net Investment Income:
T Shares................................................ -- -- (3,918) (3,826) (4,267)
A Shares................................................ -- -- (130) (114) (136)
L Shares................................................ -- -- (382) (403) (618)
Net Realized Gains:
T Shares................................................ -- -- (2,083) -- --
A Shares................................................ -- -- (83) -- --
L Shares................................................ -- -- (485) -- --
------- ------- -------- -------- --------
Total Dividends and Distributions......................... -- -- (7,081) (4,343) (5,021)
------- ------- -------- -------- --------
Capital Transactions:
Change in Net Assets from Capital Transactions............ 45,482 20,286 (70,534) 5,441 (13,087)
------- ------- -------- -------- --------
Total Change in Net Assets.............................. 44,308 20,615 (67,980) 14,052 (21,177)
------- ------- -------- -------- --------
Net Assets:
Beginning of Period....................................... 20,615 -- 318,379 304,327 325,504
------- ------- -------- -------- --------
End of Period............................................. $64,923 $20,615 $250,399 $318,379 $304,327
======= ======= ======== ======== ========
Undistributed Net Investment Income (Loss), End of Period... $ (15) $ (5) $ 149 $ 893 $ 863
======= ======= ======== ======== ========
</Table>
* Commencement of operations.
(1) Includes redemption fees collected of $3,974.
Amounts designated as "-- " are either $0 or have been rounded to $0.
99
<Table>
<Caption>
Capital Appreciation Emerging Growth Growth and
Fund Stock Fund Income Fund
------------------------------------ ---------------------- ----------------------------------
06/01/04- 06/01/03- 06/01/02- 06/01/04- 02/23/04*- 06/01/04- 06/01/03- 06/01/02-
03/31/05 05/31/04 05/31/03 03/31/05 05/31/04 03/31/05 05/31/04 05/31/03
---------- ---------- ---------- --------- ---------- ---------- --------- ---------
$ 2,917 $ (5,705) $ (5,958) $ (144) $ (24) $ 9,087 $ 7,823 $ 6,620
32,759 240,042 (191,580) (1,750) (178) 70,618 54,492 (81,525)
(23,096) (77,211) 47,666 1,765 (39) 38,394 99,001 (26,671)
---------- ---------- ---------- ------- ------- ---------- -------- ---------
12,580 157,126 (149,872) (129) (241) 118,099 161,316 (101,576)
---------- ---------- ---------- ------- ------- ---------- -------- ---------
(3,119) -- -- -- -- (9,529) (6,962) (6,291)
-- -- -- -- -- (416) (336) (270)
-- -- -- -- -- (213) (163) (125)
(22,698) -- -- -- -- (20,518) -- --
(2,096) -- -- -- -- (1,020) -- --
(1,379) -- -- -- -- (2,064) -- --
---------- ---------- ---------- ------- ------- ---------- -------- ---------
(29,292) -- -- -- -- (33,760) (7,461) (6,686)
---------- ---------- ---------- ------- ------- ---------- -------- ---------
217,615 11,323 (2,109) 7,779 13,205 133,490 63,089 (106,327)
---------- ---------- ---------- ------- ------- ---------- -------- ---------
200,903 168,449 (151,981) 7,650 12,964 217,829 216,944 (214,589)
---------- ---------- ---------- ------- ------- ---------- -------- ---------
1,494,991 1,326,542 1,478,523 12,964 -- 926,372 709,428 924,017
---------- ---------- ---------- ------- ------- ---------- -------- ---------
$1,695,894 $1,494,991 $1,326,542 $20,614 $12,964 $1,144,201 $926,372 $ 709,428
========== ========== ========== ======= ======= ========== ======== =========
$ -- $ -- $ -- $ (19) $ (6) $ 480 $ 1,551 $ 1,189
========== ========== ========== ======= ======= ========== ======== =========
<Caption>
International
Equity Fund
----------------------------------
06/01/04- 06/01/03- 06/01/02-
03/31/05 05/31/04 05/31/03
--------- --------- ---------
$ 2,809 $ 2,690 $ 1,679
13,245 12,672 (43,891)
47,096 42,092 981
-------- -------- --------
63,150 57,454 (41,231)
-------- -------- --------
(4,121) (3,390) (1,433)
(52) (74) (19)
(1) (45) --
-- -- --
-- -- --
-- -- --
-------- -------- --------
(4,174) (3,509) (1,452)
-------- -------- --------
91,655(1) 89,770 (19,020)
-------- -------- --------
150,631 143,715 (61,703)
-------- -------- --------
346,842 203,127 264,830
-------- -------- --------
$497,473 $346,842 $203,127
======== ======== ========
$ 1,301 $ 2,377 $ 2,222
======== ======== ========
</Table>
See notes to financial statements.
100
STATEMENTS OF CHANGES IN NET ASSETS (000)
STI CLASSIC EQUITY FUNDS For the Periods Indicated
<Table>
<Caption>
International Life Vision
Equity Index Fund Aggressive Growth Fund
--------------------------------- ---------------------------------
06/01/04- 06/01/03- 06/01/02- 06/01/04- 06/01/03- 06/01/02-
03/31/05 05/31/04 05/31/03 03/31/05 05/31/04 05/31/03
--------- --------- --------- --------- --------- ---------
Operations:
Net Investment Income (Loss) (1)........................ $ 2,790 $ 4,350 $ 3,085 $ 484 $ 124 $ 89
Capital Gain Received from Investments in Affiliated
Investment Companies (1).............................. -- -- -- 534 -- 30
Net Realized Gain (Loss) on Investments Sold (1) and
Foreign Currency Transactions......................... (1,347) 3,571 (16,327) 478 325 (1,580)
Net Change in Unrealized Appreciation (Depreciation) on
Investments and Foreign Currency Transactions (1)..... 67,094 82,007 (26,179) 2,602 6,169 (1,995)
-------- -------- -------- ------- ------- -------
Change in Net Assets from Operations.................... 68,537 89,928 (39,421) 4,098 6,618 (3,456)
-------- -------- -------- ------- ------- -------
Dividends and Distributions to Shareholders:
Net Investment Income:
T Shares.............................................. (8,557) (3,907) (1,078) (447) (120) (92)
A Shares.............................................. (76) (153) (4) (15) -- --
L Shares.............................................. (47) (22) --
B Shares.............................................. (29) (4) --
Net Realized Gains:
T Shares.............................................. -- -- -- -- -- --
A Shares.............................................. -- -- -- -- -- --
L Shares.............................................. -- -- --
B Shares.............................................. -- -- --
Return of Capital:
T Shares.............................................. -- -- -- -- (12) --
-------- -------- -------- ------- ------- -------
Total Dividends and Distributions....................... (8,680) (4,082) (1,082) (491) (136) (92)
-------- -------- -------- ------- ------- -------
Capital Transactions:
Change in Net Assets from Capital Transactions.......... 100,091 23,822 7,572 3,506 7,487 (1,117)
-------- -------- -------- ------- ------- -------
Total Change in Net Assets............................ 159,948 109,668 (32,931) 7,113 13,969 (4,665)
-------- -------- -------- ------- ------- -------
Net Assets:
Beginning of Period..................................... 371,408 261,740 294,671 43,702 29,733 34,398
-------- -------- -------- ------- ------- -------
End of Period........................................... $531,356 $371,408 $261,740 $50,815 $43,702 $29,733
======== ======== ======== ======= ======= =======
Undistributed Net Investment Income (Loss), End of
Period.................................................. $ (2,610) $ 3,035 $ 2,287 $ 1 $ -- $ --
======== ======== ======== ======= ======= =======
</Table>
* Commencement of operations.
(1) Net investment income, capital gains received from investment companies, net
realized gain (loss) on securities sold and net change in unrealized
appreciation (depreciation) on investments for the Life Vision Funds are
attributable to the underlying investments in affiliated investment
companies.
Amounts designated as "--" are either $0 or have been rounded to $0.
101
<Table>
<Caption>
Life Vision Life Vision Life Vision Mid-Cap
Conservative Fund Growth and Income Fund Moderate Growth Fund Equity Fund
- ---------------------------------- --------------------------------- --------------------------------- ---------
06/01/04- 06/01/03- 03/11/03*- 06/01/04- 06/01/03- 06/01/02- 06/01/04- 06/01/03- 06/01/02- 06/01/04-
03/31/05 05/31/04 05/31/03 03/31/05 05/31/04 05/31/03 03/31/05 05/31/04 05/31/03 03/31/05
- --------- --------- ---------- --------- --------- --------- --------- --------- --------- ---------
$ 114 $ 61 $ 1 $ 1,426 $ 1,051 $ 928 $ 2,791 $ 1,907 $ 1,614 $ 962
31 1 -- 873 8 73 1,309 12 91 --
22 9 -- 1,933 2,565 (4,254) 4,204 2,529 (1,615) 17,287
93 95 18 3,161 8,207 (1,727) 1,375 9,804 (1,207) 15,850
------- ------ ---- -------- ------- -------- -------- -------- ------- --------
260 166 19 7,393 11,831 (4,980) 9,679 14,252 (1,117) 34,099
------- ------ ---- -------- ------- -------- -------- -------- ------- --------
(6) -- -- (1,371) (972) (931) (2,776) (1,737) (1,621) (964)
(10) (3) -- (37) (5) -- (102) (19) -- (23)
--
(106) (47) -- (142) (58) -- (203) (90) (1)
(1) -- -- -- -- -- (682) -- -- --
(1) -- -- -- -- -- (26) -- -- --
--
(19) -- -- -- -- -- (71) -- --
-- -- -- -- -- -- -- -- -- --
------- ------ ---- -------- ------- -------- -------- -------- ------- --------
(143) (50) -- (1,550) (1,035) (931) (3,860) (1,846) (1,622) (987)
------- ------ ---- -------- ------- -------- -------- -------- ------- --------
1,022 4,600 781 12,324 17,307 (10,018) 11,225 29,617 10,560 410
------- ------ ---- -------- ------- -------- -------- -------- ------- --------
1,139 4,716 800 18,167 28,103 (15,929) 17,044 42,023 7,821 33,522
------- ------ ---- -------- ------- -------- -------- -------- ------- --------
5,516 800 -- 89,569 61,466 77,395 138,436 96,413 88,592 210,251
------- ------ ---- -------- ------- -------- -------- -------- ------- --------
$ 6,655 $5,516 $800 $107,736 $89,569 $ 61,466 $155,480 $138,436 $96,413 $243,773
======= ====== ==== ======== ======= ======== ======== ======== ======= ========
$ 4 $ 12 $ 1 $ 9 $ 133 $ 117 $ 50 $ 340 $ 279 $ 52
======= ====== ==== ======== ======= ======== ======== ======== ======= ========
<Caption>
Mid-Cap
Equity Fund
---------------------
06/01/03- 06/01/02-
05/31/04 05/31/03
--------- ---------
$ 999 $ (612)
-- --
22,721 (17,032)
6,629 (6,819)
-------- --------
30,349 (24,463)
-------- --------
(869) --
(41) --
(12) --
-- --
-- --
-- --
-- --
-------- --------
(922) --
-------- --------
38,582 (29,811)
-------- --------
68,009 (54,274)
-------- --------
142,242 196,516
-------- --------
$210,251 $142,242
======== ========
$ 77 $ --
======== ========
</Table>
See notes to financial statements.
102
STATEMENTS OF CHANGES IN NET ASSETS (000)
STI CLASSIC EQUITY FUNDS For the Periods Indicated
<Table>
<Caption>
Mid-Cap Small Cap
Value Equity Fund Growth Stock Fund
--------------------------------- ----------------------------------
06/01/04- 06/01/03- 06/01/02- 06/01/04- 06/01/03- 06/01/02-
03/31/05 05/31/04 05/31/03 03/31/05 05/31/04 05/31/03
--------- --------- --------- ---------- --------- ---------
Operations:
Net Investment Income (Loss)........................... $ 1,816 $ 669 $ 659 $ (3,979) $ (7,285) $ (4,842)
Net Realized Gain (Loss) on Investments Sold........... 27,508 18,863 (36,016) 105,648 145,086 (73,786)
Net Change in Unrealized Appreciation (Depreciation) on
Investments.......................................... (5,309) 12,849 724 (13,579) 80,171 14,238
-------- -------- -------- ---------- -------- --------
Change in Net Assets from Operations................... 24,015 32,381 (34,633) 88,090 217,972 (64,390)
-------- -------- -------- ---------- -------- --------
Dividends and Distributions to Shareholders:
Net Investment Income:
T Shares............................................. (1,906) (653) (552) -- -- --
A Shares............................................. (9) -- -- -- -- --
L Shares............................................. (31) (1) (4) -- -- --
Net Realized Gains:
T Shares............................................. -- -- (2,137) (95,566) -- (8,364)
A Shares............................................. -- -- -- (5,207) -- (313)
L Shares............................................. -- -- (108) (4,471) -- (427)
-------- -------- -------- ---------- -------- --------
Total Dividends and Distributions...................... (1,946) (654) (2,801) (105,244) -- (9,104)
-------- -------- -------- ---------- -------- --------
Capital Transactions:
Change in Net Assets from Capital Transactions......... 39,956 18,350 (37,292) 161,611 37,420 41,050
-------- -------- -------- ---------- -------- --------
Total Change in Net Assets........................... 62,025 50,077 (74,726) 144,457 255,392 (32,444)
-------- -------- -------- ---------- -------- --------
Net Assets:
Beginning of Period.................................... 155,675 105,598 180,324 870,594 615,202 647,646
-------- -------- -------- ---------- -------- --------
End of Period.......................................... $217,700 $155,675 $105,598 $1,015,051 $870,594 $615,202
======== ======== ======== ========== ======== ========
Undistributed Net Investment Income (Loss), End of
Period................................................. $ 12 $ 142 $ 127 $ -- $ -- $ 208
======== ======== ======== ========== ======== ========
</Table>
* Commencement of operations.
Amounts designated as "--" are either $0 or have been rounded to $0.
103
<Table>
<Caption>
Small Cap Strategic Quantitative Tax Sensitive Value Income
Value Equity Fund Equity Fund Growth Stock Fund Stock Fund
- --------------------------------- ---------------------- --------------------------------- ---------------------------------
06/01/04- 06/01/03- 06/01/02- 06/01/04- 08/07/03*- 06/01/04- 06/01/03- 06/01/02- 06/01/04- 06/01/03- 06/01/02-
03/31/05 05/31/04 05/31/03 03/31/05 05/31/04 03/31/05 05/31/04 05/31/03 03/31/05 05/31/04 05/31/03
- --------- --------- --------- --------- ---------- --------- --------- --------- --------- --------- ---------
$ 1,274 $ 2,067 $ 3,018 $ (143) $ (90) $ 187 $ (1,885) $ (1,308) $ 10,617 $ 10,571 $ 11,079
68,368 66,912 20,540 11,057 3,973 26,996 31,183 (64,791) 105,214 71,412 (77,218)
51,510 113,873 (63,220) 1,327 3,104 (21,017) 2,584 16,858 (18,053) 62,760 (14,271)
- -------- -------- -------- ------- ------- -------- --------- --------- -------- -------- --------
121,152 182,852 (39,662) 12,241 6,987 6,166 31,882 (49,241) 97,778 144,743 (80,410)
- -------- -------- -------- ------- ------- -------- --------- --------- -------- -------- --------
(2,046) (2,433) (2,605) -- -- (178) -- -- (11,469) (9,766) (9,401)
(5) -- -- -- -- (1) -- -- (878) (744) (735)
(18) (5) -- -- -- -- -- -- (280) (212) (189)
(54,153) -- -- (4,730) (972) -- -- -- -- -- --
(303) -- -- (16) (1) -- -- -- -- -- --
(3,428) -- -- (90) (21) -- -- -- -- -- --
- -------- -------- -------- ------- ------- -------- --------- --------- -------- -------- --------
(59,953) (2,438) (2,605) (4,836) (994) (179) -- -- (12,627) (10,722) (10,325)
- -------- -------- -------- ------- ------- -------- --------- --------- -------- -------- --------
(18,862) (99) (52,108) 19,124 62,547 (76,451) (102,333) (54,925) (10,453) (83,633) 65,832
- -------- -------- -------- ------- ------- -------- --------- --------- -------- -------- --------
42,337 180,315 (94,375) 26,529 68,540 (70,464) (70,451) (104,166) 74,698 50,388 (24,903)
- -------- -------- -------- ------- ------- -------- --------- --------- -------- -------- --------
732,847 552,532 646,907 68,540 -- 238,063 308,514 412,680 846,588 796,200 821,103
- -------- -------- -------- ------- ------- -------- --------- --------- -------- -------- --------
$775,184 $732,847 $552,532 $95,069 $68,540 $167,599 $ 238,063 $ 308,514 $921,286 $846,588 $796,200
======== ======== ======== ======= ======= ======== ========= ========= ======== ======== ========
$ 288 $ 1,083 $ 1,454 $ (19) $ (18) $ 528 $ (1,149) $ (835) $ 2 $ 2,012 $ 2,163
======== ======== ======== ======= ======= ======== ========= ========= ======== ======== ========
</Table>
See notes to financial statements.
104
FINANCIAL HIGHLIGHTS
STI CLASSIC EQUITY FUNDS Selected Data For a Share of Beneficial Interest
Outstanding Throughout the Periods Indicated.
<Table>
<Caption>
Net Asset Net Realized
Value, Net and Unrealized
Beginning Investment Gains (Losses) Total From
of Period Income (Loss) on Investments Operations
--------- ------------- -------------- ----------
AGGRESSIVE GROWTH STOCK FUND
T Shares
Period Ended March 31, 2005 $10.00 (0.06)(a) (0.05)(a) (0.11)
Period Ended May 31, 2004(b) $10.00 (0.02)(a) 0.02(a) --
A Shares
Period Ended March 31, 2005 $ 9.99 (0.09)(a) (0.06)(a) (0.15)
Period Ended May 31, 2004(b) $10.00 (0.03)(a) 0.02(a) (0.01)
L Shares
Period Ended March 31, 2005 $ 9.97 (0.15)(a) (0.04)(a) (0.19)
Period Ended May 31, 2004(b) $10.00 (0.04)(a) 0.01(a) (0.03)
BALANCED FUND
T Shares
Period Ended March 31, 2005**** $12.23 0.18 0.21 0.39
Year Ended May 31, 2004 $11.92 0.18(a) 0.32(a) 0.50
Year Ended May 31, 2003 $12.18 0.20 (0.23) (0.03)
Year Ended May 31, 2002 $13.18 0.23 (0.65) (0.42)
Year Ended May 31, 2001 $13.37 0.30 0.12 0.42
Year Ended May 31, 2000 $13.26 0.32 0.33 0.65
A Shares
Period Ended March 31, 2005**** $12.28 0.15 0.22 0.37
Year Ended May 31, 2004 $11.97 0.14(a) 0.33(a) 0.47
Year Ended May 31, 2003 $12.24 0.16 (0.24) (0.08)
Year Ended May 31, 2002 $13.24 0.18 (0.64) (0.46)
Year Ended May 31, 2001 $13.43 0.27 0.11 0.38
Year Ended May 31, 2000 $13.32 0.29 0.31 0.60
L Shares
Period Ended March 31, 2005**** $12.12 0.05 0.23 0.28
Year Ended May 31, 2004 $11.82 0.05(a) 0.32(a) 0.37
Year Ended May 31, 2003 $12.07 0.08 (0.22) (0.14)
Year Ended May 31, 2002 $13.07 0.10 (0.65) (0.55)
Year Ended May 31, 2001 $13.27 0.16 0.11 0.27
Year Ended May 31, 2000 $13.17 0.17 0.33 0.50
CAPITAL APPRECIATION FUND
T Shares
Period Ended March 31, 2005 $12.33 0.03(a) 0.07(a) 0.10
Year Ended May 31, 2004 $11.02 (0.03)(a) 1.34(a) 1.31
Year Ended May 31, 2003 $12.24 (0.03)(a) (1.19)(a) (1.22)
Year Ended May 31, 2002 $13.89 -- (1.53) (1.53)
Year Ended May 31, 2001 $17.12 (0.05) (0.38) (0.43)
Year Ended May 31, 2000 $16.62 0.02 1.40 1.42
A Shares
Period Ended March 31, 2005 $11.82 (0.04)(a) 0.06(a) 0.02
Year Ended May 31, 2004 $10.63 (0.10)(a) 1.29(a) 1.19
Year Ended May 31, 2003 $11.89 (0.10)(a) (1.16)(a) (1.26)
Year Ended May 31, 2002 $13.59 (0.10) (1.48) (1.58)
Year Ended May 31, 2001 $16.91 (0.14) (0.38) (0.52)
Year Ended May 31, 2000 $16.53 (0.11) 1.41 1.30
L Shares
Period Ended March 31, 2005 $11.22 (0.07)(a) 0.07(a) --
Year Ended May 31, 2004 $10.15 (0.15)(a) 1.22(a) 1.07
Year Ended May 31, 2003 $11.40 (0.14)(a) (1.11)(a) (1.25)
Year Ended May 31, 2002 $13.09 (0.06) (1.51) (1.57)
Year Ended May 31, 2001 $16.45 (0.16) (0.40) (0.56)
Year Ended May 31, 2000 $16.18 (0.24) 1.43 1.19
<Caption>
Dividends Distributions
from from Total
Net Investment Realized Dividends and
Income Capital Gains Distributions
-------------- ------------- -------------
AGGRESSIVE GROWTH STO
T Shares
-- -- --
-- -- --
A Shares
-- -- --
-- -- --
L Shares
-- -- --
-- -- --
BALANCED FUND
T Shares
(0.21) (0.12) (0.33)
(0.19) -- (0.19)
(0.23) -- (0.23)
(0.24) (0.34) (0.58)
(0.31) (0.30) (0.61)
(0.30) (0.24) (0.54)
A Shares
(0.18) (0.12) (0.30)
(0.16) -- (0.16)
(0.19) -- (0.19)
(0.20) (0.34) (0.54)
(0.27) (0.30) (0.57)
(0.25) (0.24) (0.49)
L Shares
(0.08) (0.12) (0.20)
(0.07) -- (0.07)
(0.11) -- (0.11)
(0.11) (0.34) (0.45)
(0.17) (0.30) (0.47)
(0.16) (0.24) (0.40)
CAPITAL APPRECIATION
T Shares
(0.03) (0.18) (0.21)
-- -- --
-- -- --
-- (0.12) (0.12)
-- (2.80) (2.80)
-- (0.92) (0.92)
A Shares
-- (0.18) (0.18)
-- -- --
-- -- --
-- (0.12) (0.12)
-- (2.80) (2.80)
-- (0.92) (0.92)
L Shares
-- (0.18) (0.18)
-- -- --
-- -- --
-- (0.12) (0.12)
-- (2.80) (2.80)
-- (0.92) (0.92)
</Table>
105
<Table>
<Caption>
Ratio of Ratio of Expenses to Average
Net Assets Net Assets, Ratio of Net Net Investment Net Assets (Excluding Portfolio
Value, End Total End of Expenses to Income (Loss) to Waivers, Reimbursements Turnover
of Period Return+ Period (000) Average Net Assets++ Average Net Assets++ and Expense Offset)++ Rate
- ---------- ------- ------------ -------------------- -------------------- ---------------------------- ---------
$ 9.89 (1.10)% $ 58,988 1.22% (0.79)% 1.45% 42%
$10.00 --% $ 20,501 1.22% (0.74)% 1.61% 2%
$ 9.84 (1.50)% $ 140 1.58% (1.14)% 5.56% 42%
$ 9.99 (0.10)% $ 49 1.65% (1.25)% 11.29%+++ 2%
$ 9.78 (1.91)% $ 5,795 2.19% (1.75)% 2.56% 42%
$ 9.97 (0.30)% $ 65 2.10% (1.69)% 8.78%+++ 2%
$12.29 3.14% $ 195,680 0.99% 1.68% 1.02% 140%
$12.23 4.24% $ 244,042 1.02% 1.50% 1.05% 116%
$11.92 (0.14)% $ 228,475 1.02% 1.74% 1.05% 102%
$12.18 (3.29)% $ 241,604 1.02% 1.78% 1.05% 95%
$13.18 3.24% $ 209,316 1.01% 2.24% 1.05% 99%
$13.37 5.02% $ 223,634 0.97% 2.39% 1.07% 182%
$12.35 2.94% $ 8,693 1.28% 1.38% 1.34% 140%
$12.28 3.91% $ 8,902 1.34% 1.18% 1.54% 116%
$11.97 (0.54)% $ 8,285 1.33% 1.43% 1.55% 102%
$12.24 (3.57)% $ 9,020 1.33% 1.46% 1.55% 95%
$13.24 2.91% $ 7,834 1.32% 1.93% 1.54% 99%
$13.43 4.66% $ 9,627 1.27% 2.07% 1.51% 182%
$12.20 2.29% $ 46,026 2.00% 0.66% 2.05% 140%
$12.12 3.12% $ 65,435 2.09% 0.42% 2.18% 116%
$11.82 (1.15)% $ 67,567 2.09% 0.67% 2.18% 102%
$12.07 (4.33)% $ 74,880 2.09% 0.71% 2.16% 95%
$13.07 2.11% $ 67,824 2.07% 1.18% 2.15% 99%
$13.27 3.88% $ 64,322 2.03% 1.33% 2.18% 182%
$12.22 0.76% $1,493,213 1.19% 0.31% 1.21% 72%
$12.33 11.89% $1,248,636 1.23% (0.25)% 1.24% 106%
$11.02 (9.97)% $1,090,549 1.22% (0.32)% 1.24% 69%
$12.24 (11.06)% $1,204,445 1.22% (0.54)% 1.24% 75%
$13.89 (3.74)% $1,177,933 1.21% (0.29)% 1.24% 75%
$17.12 8.98% $1,296,927 1.17% 0.10% 1.26% 129%
$11.66 0.15% $ 126,895 1.86% (0.38)% 1.90% 72%
$11.82 11.19% $ 145,883 1.88% (0.91)% 2.00% 106%
$10.63 (10.60)% $ 141,488 1.88% (0.98)% 2.00% 69%
$11.89 (11.68)% $ 163,155 1.88% (1.20)% 1.99% 75%
$13.59 (4.38)% $ 202,548 1.86% (0.94)% 1.99% 75%
$16.91 8.29% $ 251,421 1.82% (0.55)% 1.98% 129%
$11.04 (0.02)% $ 75,786 2.21% (0.74)% 2.24% 72%
$11.22 10.54% $ 100,472 2.35% (1.38)% 2.43% 106%
$10.15 (10.96)% $ 94,505 2.35% (1.45)% 2.45% 69%
$11.40 (12.05)% $ 110,923 2.35% (1.67)% 2.39% 75%
$13.09 (4.79)% $ 112,497 2.33% (1.41)% 2.39% 75%
$16.45 7.77% $ 128,159 2.29% (1.03)% 2.39% 129%
</Table>
See notes to financial highlights and notes to financial statements.
106
FINANCIAL HIGHLIGHTS
STI CLASSIC EQUITY FUNDS Selected Data For a Share of Beneficial Interest
Outstanding Throughout the Periods Indicated.
<Table>
<Caption>
Net Asset Net Realized Dividends
Value, Net and Unrealized from
Beginning Investment Gains (Losses) Total From Net Investment
of Period Income (Loss) on Investments Operations Income
--------- ------------- -------------- ---------- --------------
EMERGING GROWTH STOCK FUND
T Shares
Period Ended March 31, 2005 $ 9.60 (0.08)(a) (0.14)(a) (0.22) --
Period Ended May 31, 2004(b) $10.00 (0.03)(a) (0.37)(a) (0.40) --
A Shares
Period Ended March 31, 2005 $ 9.59 (0.11)(a) (0.14)(a) (0.25) --
Period Ended May 31, 2004(b) $10.00 (0.04)(a) (0.37)(a) (0.41) --
L Shares
Period Ended March 31, 2005 $ 9.58 (0.15)(a) (0.14)(a) (0.29) --
Period Ended May 31, 2004(c) $10.14 (0.05)(a) (0.51)(a) (0.56) --
GROWTH AND INCOME FUND
T Shares
Period Ended March 31, 2005 $14.72 0.17 1.74 1.91 (0.18)
Year Ended May 31, 2004 $12.21 0.14(a) 2.50(a) 2.64 (0.13)
Year Ended May 31, 2003 $13.80 0.13 (1.60) (1.47) (0.12)
Year Ended May 31, 2002 $15.05 0.09 (1.26) (1.17) (0.08)
Year Ended May 31, 2001 $15.53 0.07 (0.04) 0.03 (0.08)
Year Ended May 31, 2000 $16.09 0.11 0.55 0.66 (0.10)
A Shares
Period Ended March 31, 2005 $14.83 0.14 1.77 1.91 (0.15)
Year Ended May 31, 2004 $12.31 0.12(a) 2.51(a) 2.63 (0.11)
Year Ended May 31, 2003 $13.91 0.11 (1.61) (1.50) (0.10)
Year Ended May 31, 2002 $15.17 0.06 (1.27) (1.21) (0.05)
Year Ended May 31, 2001 $15.65 0.04 (0.04) -- (0.05)
Year Ended May 31, 2000 $16.21 0.09 0.55 0.64 (0.08)
L Shares
Period Ended March 31, 2005 $14.54 0.03 1.74 1.77 (0.04)
Year Ended May 31, 2004 $12.08 0.01(a) 2.47(a) 2.48 (0.02)
Year Ended May 31, 2003 $13.66 -- (1.56) (1.56) (0.02)
Year Ended May 31, 2002 $14.96 (0.02) (1.28) (1.30) --
Year Ended May 31, 2001 $15.49 (0.05) (0.05) (0.10) --
Year Ended May 31, 2000 $16.10 -- 0.51 0.51 --
INTERNATIONAL EQUITY FUND
T Shares
Period Ended March 31, 2005 $10.15 0.06 1.67 1.73 (0.11)
Year Ended May 31, 2004 $ 8.00 0.10(a) 2.19(a) 2.29 (0.14)
Year Ended May 31, 2003 $ 9.31 0.07 (1.32) (1.25) (0.06)
Year Ended May 31, 2002 $10.19 0.19 (1.07) (0.88) --
Year Ended May 31, 2001 $12.56 -- (1.22) (1.22) (0.04)
Year Ended May 31, 2000 $12.97 (0.10) 1.42 1.32 (0.07)
A Shares
Period Ended March 31, 2005 $10.03 0.01 1.67 1.68 (0.07)
Year Ended May 31, 2004 $ 7.92 0.04(a) 2.17(a) 2.21 (0.10)
Year Ended May 31, 2003 $ 9.21 0.04 (1.30) (1.26) (0.03)
Year Ended May 31, 2002 $10.11 0.14 (1.04) (0.90) --
Year Ended May 31, 2001 $12.47 (0.02) (1.23) (1.25) --
Year Ended May 31, 2000 $12.89 (0.11) 1.37 1.26 (0.02)
L Shares
Period Ended March 31, 2005 $ 9.49 (0.02)(a) 1.54(a) 1.52 --*
Year Ended May 31, 2004 $ 7.50 (0.01)(a) 2.06(a) 2.05 (0.06)
Year Ended May 31, 2003 $ 8.75 (0.01) (1.24) (1.25) --
Year Ended May 31, 2002 $ 9.68 0.04 (0.97) (0.93) --
Year Ended May 31, 2001 $12.06 (0.16) (1.11) (1.27) --
Year Ended May 31, 2000 $12.58 (0.32) 1.46 1.14 --
<Caption>
Distributions
from Total
Realized Dividends and
Capital Gains Distributions
------------- -------------
EMERGING GROWTH STOCK
T Shares
-- --
-- --
A Shares
-- --
-- --
L Shares
-- --
-- --
GROWTH AND INCOME FUN
T Shares
(0.38) (0.56)
-- (0.13)
-- (0.12)
-- (0.08)
(0.43) (0.51)
(1.12) (1.22)
A Shares
(0.38) (0.53)
-- (0.11)
-- (0.10)
-- (0.05)
(0.43) (0.48)
(1.12) (1.20)
L Shares
(0.38) (0.42)
-- (0.02)
-- (0.02)
-- --
(0.43) (0.43)
(1.12) (1.12)
INTERNATIONAL EQUITY
T Shares
-- (0.11)
-- (0.14)
-- (0.06)
-- --
(1.11) (1.15)
(1.66) (1.73)
A Shares
-- (0.07)
-- (0.10)
-- (0.03)
-- --
(1.11) (1.11)
(1.66) (1.68)
L Shares
-- --*
-- (0.06)
-- --
-- --
(1.11) (1.11)
(1.66) (1.66)
</Table>
107
<Table>
<Caption>
Ratio of Ratio of Expenses to Average
Net Assets Net Assets, Ratio of Net Net Investment Net Assets (Excluding Portfolio
Value, End Total End of Expenses to Income (Loss) to Waivers, Reimbursements Turnover
of Period Return+ Period (000) Average Net Assets++ Average Net Assets++ and Expense Offset)++ Rate
- ---------- ------- ------------ -------------------- -------------------- ---------------------------- ---------
$ 9.38 (2.29)% $ 20,494 1.23% (1.03)% 1.51% 64%
$ 9.60 (4.00)% $ 12,891 1.22% (1.04)% 1.69% 11%
$ 9.34 (2.61)% $ 86 1.59% (1.40)% 6.91% 64%
$ 9.59 (4.10)% $ 39 1.65% (1.46)% 13.36%+++ 11%
$ 9.29 (3.03)% $ 34 2.11% (1.92)% 13.65% 64%
$ 9.58 (5.52)% $ 34 2.11% (1.95)% 18.36%+++ 11%
$16.07 12.98% $1,010,717 0.96% 1.23% 0.96% 44%
$14.72 21.76% $ 782,665 1.00% 1.03% 1.00% 51%
$12.21 (10.58)% $ 598,862 0.99% 1.05% 0.99% 52%
$13.80 (7.80)% $ 792,557 0.99% 0.63% 0.99% 68%
$15.05 0.11% $ 867,664 0.99% 0.49% 0.99% 73%
$15.53 4.11% $ 885,109 1.01% 0.76% 1.01% 53%
$16.21 12.86% $ 44,743 1.18% 0.97% 1.23% 44%
$14.83 21.45% $ 45,808 1.18% 0.84% 1.36% 51%
$12.31 (10.74)% $ 36,305 1.18% 0.88% 1.38% 52%
$13.91 (7.97)% $ 36,789 1.18% 0.44% 1.36% 68%
$15.17 (0.07)% $ 40,174 1.18% 0.30% 1.35% 73%
$15.65 3.92% $ 42,666 1.18% 0.58% 1.31% 53%
$15.89 12.12% $ 88,741 1.93% 0.23% 1.99% 44%
$14.54 20.58% $ 97,899 1.93% 0.09% 2.17% 51%
$12.08 (11.41)% $ 74,261 1.93% 0.11% 2.20% 52%
$13.66 (8.69)% $ 94,671 1.93% (0.29)% 2.16% 68%
$14.96 (0.77)% $ 78,376 1.93% (0.45)% 2.14% 73%
$15.49 3.11% $ 62,462 1.93% (0.14)% 2.18% 53%
$11.77 17.09% $ 480,731 1.38% 0.85% 1.38% 39%
$10.15 28.64% $ 332,180 1.41% 1.08% 1.41% 58%
$ 8.00 (13.40)% $ 191,041 1.46% 0.83% 1.46% 89%
$ 9.31 (8.64)% $ 252,991 1.48% 0.48% 1.48% 102%
$10.19 (10.79)% $ 208,120 1.45% 0.50% 1.45% 68%
$12.56 10.58% $ 299,100 1.48% 0.59% 1.48% 179%
$11.64 16.78% $ 8,480 1.72% 0.47% 1.75% 39%
$10.03 29.97% $ 7,056 1.83% 0.46% 2.06% 58%
$ 7.92 (13.70)% $ 6,408 1.83% 0.59% 2.22% 89%
$ 9.21 (8.90)% $ 5,272 1.83% (0.21)% 2.08% 102%
$10.11 (11.13)% $ 7,517 1.79% 0.18% 1.97% 68%
$12.47 10.15% $ 10,462 1.83% 0.33% 1.95% 179%
$11.01 16.03% $ 8,248 2.40% (0.21)% 2.45% 39%
$ 9.49 27.32% $ 7,606 2.53% (0.15)% 2.86% 58%
$ 7.50 (14.29)% $ 5,678 2.53% (0.17)% 3.03% 89%
$ 8.75 (9.61)% $ 6,567 2.53% (0.73)% 2.93% 102%
$ 9.68 (11.71)% $ 7,765 2.48% (0.51)% 2.57% 68%
$12.06 9.38% $ 10,891 2.53% (0.38)% 2.74% 179%
</Table>
See notes to financial highlights and notes to financial statements.
108
FINANCIAL HIGHLIGHTS
STI CLASSIC EQUITY FUNDS Selected Data For a Share of Beneficial Interest
Outstanding Throughout the Periods Indicated.
<Table>
<Caption>
Net Asset Net Realized Dividends
Value, Net and Unrealized from
Beginning Investment Gains (Losses) Total From Net Investment
of Period Income (Loss) on Investments Operations Income
--------- ------------- -------------- ---------- --------------
INTERNATIONAL EQUITY INDEX FUND
T Shares
Period Ended March 31, 2005 $11.11 0.08(a) 1.88(a) 1.96 (0.24)
Year Ended May 31, 2004 $ 8.39 0.14(a) 2.71(a) 2.85 (0.13)
Year Ended May 31, 2003 $ 9.76 0.10(a) (1.43)(a) (1.33) (0.04)
Year Ended May 31, 2002 $11.18 0.04 (1.43) (1.39) (0.03)
Year Ended May 31, 2001 $13.97 0.06 (2.69) (2.63) (0.07)
Year Ended May 31, 2000 $11.82 0.16 2.13 2.29 (0.03)
A Shares
Period Ended March 31, 2005 $10.93 0.04(a) 1.84(a) 1.88 (0.12)
Year Ended May 31, 2004 $ 8.28 0.07(a) 2.68(a) 2.75 (0.10)
Year Ended May 31, 2003 $ 9.64 0.10(a) (1.45)(a) (1.35) (0.01)
Year Ended May 31, 2002 $11.05 (0.02) (1.38) (1.40) (0.01)
Year Ended May 31, 2001 $13.80 (0.01) (2.65) (2.66) --
Year Ended May 31, 2000 $11.70 (0.11) 2.32 2.21 --
L Shares
Period Ended March 31, 2005 $10.69 (0.02)(a) 1.80(a) 1.78 (0.10)
Year Ended May 31, 2004 $ 8.10 0.02(a) 2.62(a) 2.64 (0.05)
Year Ended May 31, 2003 $ 9.48 0.01(a) (1.39)(a) (1.38) --
Year Ended May 31, 2002 $10.93 (0.12) (1.33) (1.45) --
Year Ended May 31, 2001 $13.74 (0.06) (2.66) (2.72) --
Year Ended May 31, 2000 $11.73 0.08 2.04 2.12 --
LIFE VISION AGGRESSIVE GROWTH FUND(D) (E)
T Shares
Period Ended March 31, 2005 $10.25 0.12 0.82 0.94 (0.12)
Year Ended May 31, 2004 $ 8.55 0.04(a) 1.70(a) 1.74 (0.04)**
Year Ended May 31, 2003 $ 9.57 0.03 (1.02) (0.99) (0.03)
Year Ended May 31, 2002 $10.31 0.02 (0.74) (0.72) (0.02)
Year Ended May 31, 2001 $11.61 0.11 0.23 0.34 (0.12)
Year Ended May 31, 2000 $11.31 0.05 0.74 0.79 (0.05)
A Shares
Period Ended March 31, 2005 $10.23 0.09 0.82 0.91 (0.09)
Period Ended May 31, 2004(f) $ 9.46 (0.01)(a) 0.81(a) 0.80 (0.03)
B Shares
Period Ended March 31, 2005 $10.18 0.06 0.80 0.86 (0.06)
Year Ended May 31, 2004 $ 8.53 (0.04)(a) 1.70(a) 1.66 (0.01)
Period Ended May 31, 2003(g) $ 7.23 (0.01) 1.31 1.30 --
LIFE VISION CONSERVATIVE FUND(D) (E)
T Shares
Period Ended March 31, 2005 $10.87 0.28 0.28 0.56 (0.30)
Period Ended May 31, 2004(h) $10.71 0.15(a) 0.14(a) 0.29 (0.13)
A Shares
Period Ended March 31, 2005 $10.86 0.24 0.29 0.53 (0.26)
Period Ended May 31, 2004(i) $10.68 0.12(a) 0.18(a) 0.30 (0.12)
B Shares
Period Ended March 31, 2005 $10.86 0.20 0.29 0.49 (0.22)
Year Ended May 31, 2004 $10.43 0.17(a) 0.39(a) 0.56 (0.13)
Period Ended May 31, 2003(g) $10.00 0.01 0.42 0.43 --
<Caption>
Distributions
from Total
Realized Dividends and
Capital Gains Distributions
------------- -------------
INTERNATIONAL EQUITY
T Shares
-- (0.24)
-- (0.13)
-- (0.04)
-- (0.03)
(0.09) (0.16)
(0.11) (0.14)
A Shares
-- (0.12)
-- (0.10)
-- (0.01)
-- (0.01)
(0.09) (0.09)
(0.11) (0.11)
L Shares
-- (0.10)
-- (0.05)
-- --
-- --
(0.09) (0.09)
(0.11) (0.11)
LIFE VISION AGGRESSIV
T Shares
-- (0.12)
-- (0.04)**
-- (0.03)
-- (0.02)
(1.52) (1.64)
(0.44) (0.49)
A Shares
-- (0.09)
-- (0.03)
B Shares
-- (0.06)
-- (0.01)
-- --
LIFE VISION CONSERVAT
T Shares
(0.04) (0.34)
-- (0.13)
A Shares
(0.04) (0.30)
-- (0.12)
B Shares
(0.04) (0.26)
-- (0.13)
-- --
</Table>
109
<Table>
<Caption>
Ratio of Ratio of Expenses to Average
Net Assets Net Assets, Ratio of Net Net Investment Net Assets (Excluding Portfolio
Value, End Total End of Expenses to Income (Loss) to Waivers, Reimbursements Turnover
of Period Return+ Period (000) Average Net Assets++ Average Net Assets++ and Expense Offset)++ Rate
- ---------- ------- ------------ -------------------- -------------------- ---------------------------- ---------
$12.83 17.68% $517,993 0.97% 0.81% 1.06% 21%
$11.11 34.07% $351,163 0.98% 1.38% 1.07% 10%
$ 8.39 (13.63)% $248,770 1.03% 1.26% 1.12% 25%
$ 9.76 (12.43)% $287,944 1.04% 0.63% 1.12% 35%
$11.18 (18.90)% $236,862 1.06% 0.40% 1.09% 13%
$13.97 19.36% $340,853 1.07% 0.83% 1.18% 9%
$12.69 17.22% $ 7,600 1.36% 0.38% 1.45% 21%
$10.93 33.26% $ 15,037 1.49% 0.73% 1.61% 10%
$ 8.28 (14.03)% $ 9,877 1.49% 1.33% 1.87% 25%
$ 9.64 (12.65)% $ 3,222 1.49% (0.12)% 1.90% 35%
$11.05 (19.31)% $ 3,451 1.46% 0.05% 1.83% 13%
$13.80 18.86% $ 4,563 1.47% 0.07% 1.79% 9%
$12.37 16.62% $ 5,763 1.99% (0.24)% 2.12% 21%
$10.69 32.60% $ 5,208 2.14% 0.25% 2.54% 10%
$ 8.10 (14.56)% $ 3,093 2.14% 0.18% 2.82% 25%
$ 9.48 (13.27)% $ 3,505 2.14% (0.68)% 2.26% 35%
$10.93 (19.84)% $ 4,731 2.10% (0.61)% 2.15% 13%
$13.74 18.04% $ 5,853 2.12% (0.36)% 2.61% 9%
$11.07 9.15% $ 43,283 0.21% 1.32% 0.34% 29%
$10.25 20.34% $ 38,468 0.25% 0.39% 0.39% 44%
$ 8.55 (10.36)% $ 28,681 0.25% 0.33% 0.40% 50%
$ 9.57 (6.96)% $ 34,398 0.25% 0.17% 0.41% 101%
$10.31 3.07% $ 23,936 0.25% 1.05% 0.43% 202%
$11.61 7.25% $ 18,412 0.25% 0.48% 0.44% 183%
$11.05 8.90% $ 2,080 0.55% 1.20% 1.01% 29%
$10.23 8.43% $ 867 0.51% (0.24)% 5.15% 44%
$10.98 8.44% $ 5,452 1.03% 0.53% 1.40% 29%
$10.18 19.49% $ 4,367 1.00% (0.36)% 1.95% 44%
$ 8.53 18.03% $ 1,052 0.89% (0.86)% 1.36% 50%
$11.09 5.18% $ 414 0.17% 3.29% 1.52% 121%
$10.87 2.68% $ 30 0.25% 2.41% 85.33%+++ 138%
$11.09 4.88% $ 606 0.56% 2.61% 1.51% 121%
$10.86 2.82% $ 474 0.57% 2.06% 4.00% 138%
$11.09 4.50% $ 5,635 0.96% 2.22% 1.67% 121%
$10.86 5.38% $ 5,012 0.95% 1.54% 1.81% 138%
$10.43 4.30% $ 800 0.92% 0.85% 1.39% 160%
</Table>
See notes to financial highlights and notes to financial statements.
110
FINANCIAL HIGHLIGHTS
STI CLASSIC EQUITY FUNDS Selected Data For a Share of Beneficial Interest
Outstanding Throughout the Periods Indicated.
<Table>
<Caption>
Net Asset Net Realized Dividends Distributions
Value, Net and Unrealized from from
Beginning Investment Gains (Losses) Total From Net Investment Realized
of Period Income (Loss) on Investments Operations Income Capital Gains
------------ ------------- -------------- ---------- -------------- -------------
LIFE VISION GROWTH AND INCOME FUND (D) (E)
T Shares
Period Ended March 31, 2005 $10.76 0.16 0.67 0.83 (0.18) --
Year Ended May 31, 2004 $ 9.33 0.14(a) 1.43(a) 1.57 (0.14) --
Year Ended May 31, 2003 $ 9.98 0.13 (0.65) (0.52) (0.13) --
Year Ended May 31, 2002 $10.42 0.12 (0.43) (0.31) (0.13) --
Year Ended May 31, 2001 $10.50 0.24 0.40 0.64 (0.25) (0.47)
Year Ended May 31, 2000 $10.33 0.07 0.52 0.59 (0.17) (0.25)
A Shares
Period Ended March 31, 2005 $10.75 0.13 0.66 0.79 (0.15) --
Period Ended May 31, 2004 (j) $10.18 0.06(a) 0.58(a) 0.64 (0.07) --
B Shares
Period Ended March 31, 2005 $10.74 0.08 0.67 0.75 (0.10) --
Year Ended May 31, 2004 $ 9.34 0.07(a) 1.42(a) 1.49 (0.09) --
Period Ended May 31, 2003 (g) $ 8.10 0.02 1.24 1.26 (0.02) --
LIFE VISION MODERATE GROWTH FUND (D) (E)
T Shares
Period Ended March 31, 2005 $10.06 0.20 0.50 0.70 (0.22) (0.05)
Year Ended May 31, 2004 $ 9.02 0.16(a) 1.04(a) 1.20 (0.16) --
Year Ended May 31, 2003 $ 9.40 0.16 (0.38) (0.22) (0.16) --
Year Ended May 31, 2002 $ 9.73 0.17 (0.32) (0.15) (0.18) --
Year Ended May 31, 2001 $10.61 0.32 0.20 0.52 (0.34) (1.06)
Year Ended May 31, 2000 $10.80 0.33 0.13 0.46 (0.21) (0.44)
A Shares
Period Ended March 31, 2005 $10.05 0.17 0.50 0.67 (0.19) (0.05)
Period Ended May 31, 2004 (k) $ 9.58 0.10(a) 0.45(a) 0.55 (0.08) --
B Shares
Period Ended March 31, 2005 $10.03 0.13 0.50 0.63 (0.15) (0.05)
Year Ended May 31, 2004 $ 9.00 0.09(a) 1.04(a) 1.13 (0.10) --
Period Ended May 31, 2003 (g) $ 8.05 0.03 0.95 0.98 (0.03) --
MID-CAP EQUITY FUND
T Shares
Period Ended March 31, 2005 $10.32 0.07 1.70 1.77 (0.06) --
Year Ended May 31, 2004 $ 8.74 0.06(a) 1.57(a) 1.63 (0.05) --
Year Ended May 31, 2003 $ 9.79 (0.03)(a) (1.02)(a)*** (1.05)*** -- --
Year Ended May 31, 2002 $10.95 0.01 (1.17) (1.16) -- --
Year Ended May 31, 2001 $14.10 (0.03) (0.61) (0.64) -- (2.51)
Year Ended May 31, 2000 $12.68 (0.04) 2.32 2.28 -- (0.86)
A Shares
Period Ended March 31, 2005 $ 9.92 0.02 1.64 1.66 (0.01) --
Year Ended May 31, 2004 $ 8.42 0.02(a) 1.51(a) 1.53 (0.03) --
Year Ended May 31, 2003 $ 9.47 (0.05)(a) (1.00)(a) (1.05) -- --
Year Ended May 31, 2002 $10.64 (0.03) (1.14) (1.17) -- --
Year Ended May 31, 2001 $13.82 (0.05) (0.62) (0.67) -- (2.51)
Year Ended May 31, 2000 $12.50 (0.19) 2.37 2.18 -- (0.86)
L Shares
Period Ended March 31, 2005 $ 9.30 0.01 1.50 1.51 -- --
Year Ended May 31, 2004 $ 7.92 (0.04)(a) 1.43(a) 1.39 (0.01) --
Year Ended May 31, 2003 $ 8.97 (0.10)(a) (0.95)(a) (1.05) -- --
Year Ended May 31, 2002 $10.14 0.02 (1.19) (1.17) -- --
Year Ended May 31, 2001 $13.35 (0.07) (0.63) (0.70) -- (2.51)
Year Ended May 31, 2000 $12.17 (0.22) 2.26 2.04 -- (0.86)
<Caption>
Total
Dividends and
Distributions
-------------
LIFE VISION GROWTH AND INCOME FU
T Shares
Period Ended March 31, 2005 (0.18)
Year Ended May 31, 2004 (0.14)
Year Ended May 31, 2003 (0.13)
Year Ended May 31, 2002 (0.13)
Year Ended May 31, 2001 (0.72)
Year Ended May 31, 2000 (0.42)
A Shares
Period Ended March 31, 2005 (0.15)
Period Ended May 31, 2004 (j) (0.07)
B Shares
Period Ended March 31, 2005 (0.10)
Year Ended May 31, 2004 (0.09)
Period Ended May 31, 2003 (g) (0.02)
LIFE VISION MODERATE GROWTH FUND
T Shares
Period Ended March 31, 2005 (0.27)
Year Ended May 31, 2004 (0.16)
Year Ended May 31, 2003 (0.16)
Year Ended May 31, 2002 (0.18)
Year Ended May 31, 2001 (1.40)
Year Ended May 31, 2000 (0.65)
A Shares
Period Ended March 31, 2005 (0.24)
Period Ended May 31, 2004 (k) (0.08)
B Shares
Period Ended March 31, 2005 (0.20)
Year Ended May 31, 2004 (0.10)
Period Ended May 31, 2003 (g) (0.03)
MID-CAP EQUITY FUND
T Shares
Period Ended March 31, 2005 (0.06)
Year Ended May 31, 2004 (0.05)
Year Ended May 31, 2003 --
Year Ended May 31, 2002 --
Year Ended May 31, 2001 (2.51)
Year Ended May 31, 2000 (0.86)
A Shares
Period Ended March 31, 2005 (0.01)
Year Ended May 31, 2004 (0.03)
Year Ended May 31, 2003 --
Year Ended May 31, 2002 --
Year Ended May 31, 2001 (2.51)
Year Ended May 31, 2000 (0.86)
L Shares
Period Ended March 31, 2005 --
Year Ended May 31, 2004 (0.01)
Year Ended May 31, 2003 --
Year Ended May 31, 2002 --
Year Ended May 31, 2001 (2.51)
Year Ended May 31, 2000 (0.86)
</Table>
111
<Table>
<Caption>
Ratio of Ratio of Expenses to Average
Net Assets Net Assets, Ratio of Net Investment Net Assets (Excluding Portfolio
Value, End Total End of Net Expenses to Income (Loss) to Waivers, Reimbursements Turnover
of Period Return+ Period (000) Average Net Assets++ Average Net Assets++ and Expense Offset)++ Rate
- ---------- ------- ------------ -------------------- -------------------- ---------------------------- ---------
$11.41 7.77% $ 87,520 0.22% 1.82% 0.33% 59%
$10.76 16.92% $ 75,083 0.25% 1.38% 0.36% 97%
$ 9.33 (5.16)% $ 59,449 0.25% 1.46% 0.37% 139%
$ 9.98 (2.97)% $ 77,395 0.25% 1.25% 0.39% 166%
$10.42 6.31% $ 37,550 0.25% 2.41% 0.39% 286%
$10.50 5.81% $ 30,473 0.25% 1.77% 0.42% 189%
$11.39 7.37% $ 3,575 0.57% 1.55% 0.91% 59%
$10.75 6.32% $ 1,426 0.56% 1.04% 1.95% 97%
$11.39 7.00% $ 16,641 1.01% 1.05% 1.34% 59%
$10.74 15.99% $ 13,060 1.00% 0.63% 1.61% 97%
$ 9.34 15.57% $ 2,017 0.90% 0.39% 1.34% 139%
$10.49 6.98% $132,522 0.21% 2.32% 0.32% 83%
$10.06 13.35% $121,659 0.25% 1.65% 0.36% 109%
$ 9.02 (2.21)% $ 93,722 0.25% 1.87% 0.36% 101%
$ 9.40 (1.52)% $ 88,592 0.25% 1.81% 0.36% 202%
$ 9.73 5.28% $ 73,429 0.25% 3.04% 0.37% 247%
$10.61 4.46% $ 69,622 0.25% 2.19% 0.37% 151%
$10.48 6.74% $ 8,161 0.47% 2.13% 0.87% 83%
$10.05 5.79% $ 3,541 0.55% 1.49% 1.27% 109%
$10.46 6.28% $ 14,797 0.92% 1.59% 1.35% 83%
$10.03 12.66% $ 13,236 1.00% 0.91% 1.56% 109%
$ 9.00 12.22% $ 2,691 0.91% 0.93% 1.34% 101%
$12.03 17.17% $214,660 1.20% 0.64% 1.22% 68%
$10.32 18.70% $177,128 1.23% 0.64% 1.26% 126%
$ 8.74 (10.73)% $118,092 1.22% (0.31)% 1.25% 144%
$ 9.79 (10.59)% $171,813 1.22% (0.18)% 1.24% 87%
$10.95 (6.92)% $156,111 1.21% (0.24)% 1.25% 100%
$14.10 19.10% $206,545 1.17% -- 1.25% 131%
$11.57 16.79% $ 14,556 1.63% 0.21% 1.68% 68%
$ 9.92 18.16% $ 17,125 1.68% 0.20% 1.87% 126%
$ 8.42 (11.09)% $ 12,137 1.68% (0.68)% 1.92% 144%
$ 9.47 (11.00)% $ 10,766 1.68% (0.63)% 1.89% 87%
$10.64 (7.34)% $ 12,316 1.66% (0.69)% 1.86% 100%
$13.82 18.55% $ 14,513 1.62% (0.43)% 1.81% 131%
$10.81 16.24% $ 14,557 2.21% (0.37)% 2.28% 68%
$ 9.30 17.51% $ 15,998 2.28% (0.41)% 2.54% 126%
$ 7.92 (11.71)% $ 12,013 2.28% (1.33)% 2.60% 144%
$ 8.97 (11.54)% $ 13,937 2.28% (1.23)% 2.50% 87%
$10.14 (7.88)% $ 12,910 2.26% (1.29)% 2.46% 100%
$13.35 17.87% $ 14,588 2.22% (1.05)% 2.44% 131%
</Table>
See notes to financial highlights and notes to financial statements.
112
FINANCIAL HIGHLIGHTS
STI CLASSIC EQUITY FUNDS Selected Data For a Share of Beneficial Interest
Outstanding Throughout the Periods Indicated.
<Table>
<Caption>
Net Asset Net Realized Dividends
Value, Net and Unrealized from
Beginning of Investment Gains (Losses) Total From Net Investment
Period Income (Loss) on Investments Operations Income
------------ ------------- -------------- ---------- --------------
MID-CAP VALUE EQUITY FUND
T Shares
Period Ended March 31, 2005 $10.95 0.11 1.33 1.44 (0.12)
Year Ended May 31, 2004 $ 8.62 0.05(a) 2.33(a) 2.38 (0.05)
Year Ended May 31, 2003 $10.95 0.05 (2.16) (2.11) (0.04)
Period Ended May 31, 2002 (l) $10.00 0.02 0.94 0.96 (0.01)
A Shares
Period Ended March 31, 2005 $10.94 0.08 1.31 1.39 (0.09)
Period Ended May 31, 2004 (m) $ 9.39 0.02(a) 1.55(a) 1.57 (0.02)
L Shares
Period Ended March 31, 2005 $10.90 0.04 1.32 1.36 (0.05)
Year Ended May 31, 2004 $ 8.58 (0.01)(a) 2.33(a) 2.32 --*
Year Ended May 31, 2003 $10.92 0.01 (2.16) (2.15) (0.01)
Period Ended May 31, 2002 (l) $10.00 (0.01) 0.93 0.92 --
SMALL CAP GROWTH STOCK FUND
T Shares
Period Ended March 31, 2005 $20.25 (0.08)(a) 2.27(a) 2.19 --
Year Ended May 31, 2004 $15.19 (0.16)(a) 5.22(a) 5.06 --
Year Ended May 31, 2003 $17.28 (0.12)(a) (1.72)(a) (1.84) --
Year Ended May 31, 2002 $18.37 -- (1.02) (1.02) --
Year Ended May 31, 2001 $18.30 (0.18) 1.71 1.53 --
Year Ended May 31, 2000 $14.55 (0.08) 4.02 3.94 --
A Shares
Period Ended March 31, 2005 $19.92 (0.14)(a) 2.23(a) 2.09 --
Year Ended May 31, 2004 $15.00 (0.22)(a) 5.14(a) 4.92 --
Year Ended May 31, 2003 $17.12 (0.17)(a) (1.70)(a) (1.87) --
Year Ended May 31, 2002 $18.26 (0.17) (0.90) (1.07) --
Year Ended May 31, 2001 $18.27 (0.59) 2.04 1.45 --
Period Ended May 31, 2000 (n) $16.46 (0.07) 1.88 1.81 --
L Shares
Period Ended March 31, 2005 $19.06 (0.23)(a) 2.13(a) 1.90 --
Year Ended May 31, 2004 $14.45 (0.34)(a) 4.95(a) 4.61 --
Year Ended May 31, 2003 $16.62 (0.26)(a) (1.66)(a) (1.92) --
Year Ended May 31, 2002 $17.85 (0.02) (1.14) (1.16) --
Year Ended May 31, 2001 $18.00 (0.25) 1.56 1.31 --
Year Ended May 31, 2000 $14.46 (0.04) 3.77 3.73 --
SMALL CAP VALUE EQUITY FUND
T Shares
Period Ended March 31, 2005 $18.26 0.04(a) 3.15(a) 3.19 (0.06)
Year Ended May 31, 2004 $13.73 0.06(a) 4.53(a) 4.59 (0.06)
Year Ended May 31, 2003 $14.54 0.08 (0.82) (0.74) (0.07)
Year Ended May 31, 2002 $12.21 0.08 2.35 2.43 (0.10)
Year Ended May 31, 2001 $ 9.13 0.17 3.07 3.24 (0.16)
Year Ended May 31, 2000 $ 9.70 0.13 (0.59) (0.46) (0.11)
A Shares
Period Ended March 31, 2005 $18.18 (0.01)(a) 3.13(a) 3.12 (0.02)
Period Ended May 31, 2004 (o) $15.75 0.03(a) 2.41(a) 2.44 (0.01)
L Shares
Period Ended March 31, 2005 $17.91 (0.01)(a) 3.09(a) 3.08 (0.01)
Year Ended May 31, 2004 $13.55 (0.10)(a) 4.46(a) 4.36 --*
Year Ended May 31, 2003 $14.43 (0.04) (0.84) (0.88) --
Year Ended May 31, 2002 $12.15 -- 2.29 2.29 (0.01)
Year Ended May 31, 2001 $ 9.10 0.07 3.04 3.11 (0.06)
Year Ended May 31, 2000 $ 9.65 -- (0.54) (0.54) (0.01)
<Caption>
Distributions
from Total
Realized Dividends and
Capital Gains Distributions
------------- -------------
MID-CAP VALUE EQUITY FUND
T Shares
Period Ended March 31, 2005 -- (0.12)
Year Ended May 31, 2004 -- (0.05)
Year Ended May 31, 2003 (0.18) (0.22)
Period Ended May 31, 2002 (l) -- (0.01)
A Shares
Period Ended March 31, 2005 -- (0.09)
Period Ended May 31, 2004 (m) -- (0.02)
L Shares
Period Ended March 31, 2005 -- (0.05)
Year Ended May 31, 2004 -- --*
Year Ended May 31, 2003 (0.18) (0.19)
Period Ended May 31, 2002 (l) -- --
SMALL CAP GROWTH STOCK FUND
T Shares
Period Ended March 31, 2005 (2.45) (2.45)
Year Ended May 31, 2004 -- --
Year Ended May 31, 2003 (0.25) (0.25)
Year Ended May 31, 2002 (0.07) (0.07)
Year Ended May 31, 2001 (1.46) (1.46)
Year Ended May 31, 2000 (0.19) (0.19)
A Shares
Period Ended March 31, 2005 (2.45) (2.45)
Year Ended May 31, 2004 -- --
Year Ended May 31, 2003 (0.25) (0.25)
Year Ended May 31, 2002 (0.07) (0.07)
Year Ended May 31, 2001 (1.46) (1.46)
Period Ended May 31, 2000 (n) -- --
L Shares
Period Ended March 31, 2005 (2.45) (2.45)
Year Ended May 31, 2004 -- --
Year Ended May 31, 2003 (0.25) (0.25)
Year Ended May 31, 2002 (0.07) (0.07)
Year Ended May 31, 2001 (1.46) (1.46)
Year Ended May 31, 2000 (0.19) (0.19)
SMALL CAP VALUE EQUITY FUND
T Shares
Period Ended March 31, 2005 (1.53) (1.59)
Year Ended May 31, 2004 -- (0.06)
Year Ended May 31, 2003 -- (0.07)
Year Ended May 31, 2002 -- (0.10)
Year Ended May 31, 2001 -- (0.16)
Year Ended May 31, 2000 -- (0.11)
A Shares
Period Ended March 31, 2005 (1.53) (1.55)
Period Ended May 31, 2004 (o) -- (0.01)
L Shares
Period Ended March 31, 2005 (1.53) (1.54)
Year Ended May 31, 2004 -- --*
Year Ended May 31, 2003 -- --
Year Ended May 31, 2002 -- (0.01)
Year Ended May 31, 2001 -- (0.06)
Year Ended May 31, 2000 -- (0.01)
</Table>
113
<Table>
<Caption>
Ratio of Net Ratio of Expenses to Average
Net Assets Net Assets, Ratio of Net Investment Income Net Assets (Excluding Portfolio
Value, End Total End of Expenses to (Loss) to Average Waivers, Reimbursements Turnover
of Period Return+ Period (000) Average Net Assets++ Net Assets++ and Expense Offset)++ Rate
---------- ------- ------------ -------------------- ----------------- ---------------------------- ---------
$12.27 13.25% $209,088 1.22% 1.19% 1.32% 117%
$10.95 27.71% $147,185 1.26% 0.53% 1.36% 95%
$ 8.62 (19.05)% $ 99,854 1.25% 0.63% 1.35% 71%
$10.95 9.65% $174,859 1.27% 0.29% 1.37% 30%
$12.24 12.73% $ 1,724 1.62% 0.74% 1.93% 117%
$10.94 16.73% $ 610 1.60% 0.24% 4.23% 95%
$12.21 12.47% $ 6,888 1.91% 0.54% 2.39% 117%
$10.90 27.06% $ 7,880 1.90% (0.11)% 2.74% 95%
$ 8.58 (19.58)% $ 5,744 1.90% 0.03% 2.85% 71%
$10.92 9.24% $ 5,465 1.89% (0.31)% 2.72% 30%
$19.99 10.60% $940,775 1.22% (0.46)% 1.22% 70%
$20.25 33.31% $789,650 1.25% (0.83)% 1.25% 107%
$15.19 (10.50)% $567,714 1.24% (0.87)% 1.24% 96%
$17.28 (5.55)% $593,211 1.25% (1.01)% 1.25% 100%
$18.37 8.33% $508,857 1.24% (0.95)% 1.25% 112%
$18.30 27.24% $431,478 1.20% (0.86)% 1.23% 110%
$19.56 10.26% $ 38,954 1.61% (0.84)% 1.73% 70%
$19.92 32.80% $ 40,590 1.61% (1.20)% 1.88% 107%
$15.00 (10.77)% $ 21,887 1.61% (1.23)% 1.93% 96%
$17.12 (5.86)% $ 24,978 1.61% (1.37)% 1.88% 100%
$18.26 7.89% $ 28,933 1.60% (1.33)% 1.87% 112%
$18.27 11.00% $ 39,865 1.55% (1.26)% 1.79% 110%
$18.51 9.71% $ 35,322 2.22% (1.46)% 2.24% 70%
$19.06 31.90% $ 40,354 2.31% (1.90)% 2.40% 107%
$14.45 (11.40)% $ 25,601 2.31% (1.93)% 2.46% 96%
$16.62 (6.50)% $ 29,457 2.31% (2.07)% 2.41% 100%
$17.85 7.19% $ 26,941 2.29% (2.01)% 2.39% 112%
$18.00 25.95% $ 23,228 2.25% (1.92)% 2.42% 110%
$19.86 17.57% $726,904 1.21% 0.22% 1.21% 17%
$18.26 33.56% $682,567 1.25% 0.38% 1.25% 44%
$13.73 (5.09)% $518,468 1.24% 0.64% 1.24% 29%
$14.54 20.06% $614,199 1.25% 0.67% 1.25% 29%
$12.21 35.90% $401,900 1.25% 1.72% 1.25% 86%
$ 9.13 (4.72)% $212,074 1.22% 1.31% 1.25% 65%
$19.75 17.26% $ 4,616 1.47% (0.05)% 1.61% 17%
$18.18 15.51% $ 4,088 1.55% 0.30% 2.15% 44%
$19.45 17.27% $ 43,664 1.50% (0.07)% 2.25% 17%
$17.91 32.20% $ 46,192 2.26% (0.64)% 2.45% 44%
$13.55 (6.10)% $ 34,064 2.31% (0.40)% 2.50% 29%
$14.43 18.92% $ 32,708 2.31% (0.38)% 2.52% 29%
$12.15 34.30% $ 11,167 2.30% 0.63% 2.66% 86%
$ 9.10 (5.65)% $ 8,596 2.27% 0.21% 2.56% 65%
</Table>
See notes to financial highlights and notes to financial statements.
114
FINANCIAL HIGHLIGHTS
STI CLASSIC EQUITY FUNDS Selected Data For a Share of Beneficial Interest
Outstanding Throughout the Periods Indicated.
<Table>
<Caption>
Net Asset Net Realized Dividends
Value, Net and Unrealized from
Beginning of Investment Gains (Losses) Total From Net Investment
Period Income (Loss) on Investments Operations Income
------------ ------------- -------------- ---------- --------------
STRATEGIC QUANTITATIVE EQUITY FUND
T Shares
Period Ended March 31, 2005 $12.08 (0.02)(a) 1.91(a) 1.89 --
Period Ended May 31, 2004 (p) $10.00 (0.02)(a) 2.35(a) 2.33 --
A Shares
Period Ended March 31, 2005 $12.05 (0.05)(a) 1.90(a) 1.85 --
Period Ended May 31, 2004 (q) $11.35 (0.05)(a) 1.00(a) 0.95 --
L Shares
Period Ended March 31, 2005 $12.00 (0.13)(a) 1.88(a) 1.75 --
Period Ended May 31, 2004 (r) $11.64 (0.11)(a) 0.72(a) 0.61 --
TAX SENSITIVE GROWTH STOCK FUND
T Shares
Period Ended March 31, 2005 $23.31 0.10(a) 0.77(a) 0.87 (0.04)
Year Ended May 31, 2004 $20.78 (0.06)(a) 2.59(a) 2.53 --
Year Ended May 31, 2003 $23.25 --(a) (2.47)(a) (2.47) --
Year Ended May 31, 2002 $26.74 (0.02) (3.47) (3.49) --
Year Ended May 31, 2001 $33.10 (0.03) (6.33) (6.36) --
Year Ended May 31, 2000 $29.96 0.02 3.12 3.14 --
A Shares
Period Ended March 31, 2005 $23.26 0.03(a) 0.77(a) 0.80 (0.04)
Period Ended May 31, 2004 (s) $22.32 (0.10)(a) 1.04(a) 0.94 --
L Shares
Period Ended March 31, 2005 $22.04 (0.09)(a) 0.72(a) 0.63 --
Year Ended May 31, 2004 $19.85 (0.29)(a) 2.48(a) 2.19 --
Year Ended May 31, 2003 $22.45 (0.20)(a) (2.40)(a) (2.60) --
Year Ended May 31, 2002 $26.10 (0.41) (3.24) (3.65) --
Year Ended May 31, 2001 $32.65 (0.36) (6.19) (6.55) --
Year Ended May 31, 2000 $29.85 (0.16) 2.96 2.80 --
VALUE INCOME STOCK FUND
T Shares
Period Ended March 31, 2005 $11.47 0.15 1.15 1.30 (0.18)
Year Ended May 31, 2004 $ 9.73 0.15(a) 1.74(a) 1.89 (0.15)
Year Ended May 31, 2003 $11.05 0.15 (1.33) (1.18) (0.14)
Year Ended May 31, 2002 $11.61 0.12 (0.56) (0.44) (0.12)
Year Ended May 31, 2001 $10.38 0.19 1.24 1.43 (0.20)
Year Ended May 31, 2000 $12.85 0.23 (1.49) (1.26) (0.22)
A Shares
Period Ended March 31, 2005 $11.43 0.11 1.16 1.27 (0.14)
Year Ended May 31, 2004 $ 9.70 0.11(a) 1.73(a) 1.84 (0.11)
Year Ended May 31, 2003 $11.01 0.12 (1.32) (1.20) (0.11)
Year Ended May 31, 2002 $11.58 0.08 (0.56) (0.48) (0.09)
Year Ended May 31, 2001 $10.35 0.14 1.25 1.39 (0.16)
Year Ended May 31, 2000 $12.81 0.19 (1.48) (1.29) (0.18)
L Shares
Period Ended March 31, 2005 $11.31 0.03 1.15 1.18 (0.06)
Year Ended May 31, 2004 $ 9.60 0.03(a) 1.72(a) 1.75 (0.04)
Year Ended May 31, 2003 $10.90 0.05 (1.31) (1.26) (0.04)
Year Ended May 31, 2002 $11.46 -- (0.55) (0.55) (0.01)
Year Ended May 31, 2001 $10.24 0.04 1.26 1.30 (0.08)
Year Ended May 31, 2000 $12.68 0.08 (1.44) (1.36) (0.09)
<Caption>
Distributions
from Total
Realized Dividends and
Capital Gains Distributions
------------- -------------
STRATEGIC QUANTITATIVE EQUITY FUND
T Shares
Period Ended March 31, 2005 (0.72) (0.72)
Period Ended May 31, 2004 (p) (0.25) (0.25)
A Shares
Period Ended March 31, 2005 (0.72) (0.72)
Period Ended May 31, 2004 (q) (0.25) (0.25)
L Shares
Period Ended March 31, 2005 (0.72) (0.72)
Period Ended May 31, 2004 (r) (0.25) (0.25)
TAX SENSITIVE GROWTH STOCK FUND
T Shares
Period Ended March 31, 2005 -- (0.04)
Year Ended May 31, 2004 -- --
Year Ended May 31, 2003 -- --
Year Ended May 31, 2002 -- --
Year Ended May 31, 2001 -- --
Year Ended May 31, 2000 -- --
A Shares
Period Ended March 31, 2005 -- (0.04)
Period Ended May 31, 2004 (s) -- --
L Shares
Period Ended March 31, 2005 -- --
Year Ended May 31, 2004 -- --
Year Ended May 31, 2003 -- --
Year Ended May 31, 2002 -- --
Year Ended May 31, 2001 -- --
Year Ended May 31, 2000 -- --
VALUE INCOME STOCK FUND
T Shares
Period Ended March 31, 2005 -- (0.18)
Year Ended May 31, 2004 -- (0.15)
Year Ended May 31, 2003 -- (0.14)
Year Ended May 31, 2002 -- (0.12)
Year Ended May 31, 2001 -- (0.20)
Year Ended May 31, 2000 (0.99) (1.21)
A Shares
Period Ended March 31, 2005 -- (0.14)
Year Ended May 31, 2004 -- (0.11)
Year Ended May 31, 2003 -- (0.11)
Year Ended May 31, 2002 -- (0.09)
Year Ended May 31, 2001 -- (0.16)
Year Ended May 31, 2000 (0.99) (1.17)
L Shares
Period Ended March 31, 2005 -- (0.06)
Year Ended May 31, 2004 -- (0.04)
Year Ended May 31, 2003 -- (0.04)
Year Ended May 31, 2002 -- (0.01)
Year Ended May 31, 2001 -- (0.08)
Year Ended May 31, 2000 (0.99) (1.08)
</Table>
115
<Table>
<Caption>
Ratio of Net Ratio of Expenses to Average
Net Assets Net Assets, Ratio of Net Investment Income Net Assets (Excluding Portfolio
Value, End Total End of Expenses to (Loss) to Average Waivers, Reimbursements Turnover
of Period Return+ Period (000) Average Net Assets++ Net Assets++ and Expense Offset)++ Rate
---------- ------- ------------ -------------------- ----------------- ---------------------------- ---------
$13.25 15.84% $ 93,204 1.11% (0.19)% 1.26% 346%
$12.08 23.43% $ 66,812 1.13% (0.22)% 1.33% 344%
$13.18 15.54% $ 407 1.39% (0.47)% 2.37% 346%
$12.05 8.48% $ 155 1.55% (0.67)% 10.70%+++ 344%
$13.03 14.76% $ 1,458 2.13% (1.22)% 2.39% 346%
$12.00 5.34% $ 1,573 2.30% (1.42)% 3.09% 344%
$24.14 3.74% $ 98,982 1.22% 0.52% 1.25% 51%
$23.31 12.18% $144,732 1.25% (0.28)% 1.25% 49%
$20.78 (10.62)% $198,429 1.24% (0.01)% 1.24% 58%
$23.25 (13.05)% $244,707 1.24% (0.10)% 1.24% 69%
$26.74 (19.21)% $460,311 1.24% (0.10)% 1.25% 103%
$33.10 10.48% $710,179 1.20% 0.13% 1.26% 30%
$24.02 3.42% $ 667 1.62% 0.13% 2.00% 51%
$23.26 4.21% $ 365 1.65% (0.71)% 4.48%+++ 49%
$22.67 2.86% $ 67,950 2.23% (0.47)% 2.28% 51%
$22.04 11.03% $ 92,966 2.31% (1.34)% 2.41% 49%
$19.85 (11.58)% $110,085 2.31% (1.07)% 2.40% 58%
$22.45 (13.98)% $167,973 2.31% (1.16)% 2.36% 69%
$26.10 (20.06)% $233,496 2.30% (1.15)% 2.34% 103%
$32.65 9.38% $290,595 2.25% (0.91)% 2.35% 30%
$12.59 11.42% $792,677 0.86% 1.52% 0.86% 87%
$11.47 19.58% $715,928 0.90% 1.40% 0.90% 67%
$ 9.73 (10.54)% $681,899 0.89% 1.68% 0.89% 46%
$11.05 (3.68)% $686,014 0.90% 1.13% 0.90% 60%
$11.61 14.09% $704,842 0.90% 1.70% 0.90% 77%
$10.38 (10.52)% $921,797 0.89% 2.02% 0.89% 62%
$12.56 11.18% $ 75,462 1.20% 1.18% 1.20% 87%
$11.43 19.10% $ 73,257 1.28% 1.01% 1.31% 67%
$ 9.70 (10.85)% $ 65,294 1.28% 1.29% 1.32% 46%
$11.01 (4.14)% $ 75,697 1.28% 0.74% 1.31% 60%
$11.58 13.63% $ 85,584 1.28% 1.31% 1.31% 77%
$10.35 (10.83)% $104,178 1.28% 1.64% 1.28% 62%
$12.43 10.46% $ 53,147 1.88% 0.49% 1.89% 87%
$11.31 18.27% $ 57,403 2.02% 0.27% 2.07% 67%
$ 9.60 (11.56)% $ 49,007 2.02% 0.55% 2.10% 46%
$10.90 (4.82)% $ 59,392 2.02% --% 2.05% 60%
$11.46 12.85% $ 65,895 2.01% 0.59% 2.05% 77%
$10.24 (11.50)% $ 84,563 2.02% 0.91% 2.03% 62%
</Table>
See notes to financial highlights and notes to financial statements.
116
NOTES TO FINANCIAL HIGHLIGHTS
* Amount represents less than $0.005.
** Includes return of capital of $0.003.
*** Includes redemption fees of $0.01.
****Effective June 1, 2004, the Balanced Fund adopted a change in the
amortization and accretion methodology on fixed income securities. (See Note
3.) The cumulative effect of this change in methodology was immaterial.
+ Total return excludes sales charge. Not annualized for periods less than one
year.
++ Annualized for periods less than one year.
+++ Ratio reflects the impact of the initial low level of average net assets
associated with commencement of operations.
(a) Per share data calculated using average shares outstanding method.
(b) Commenced operations on February 23, 2004.
(c) Commenced operations on February 27, 2004.
(d) The Life Vision Funds and its shareholders indirectly bear a pro rata share
of the expenses of the underlying STI Classic Funds. The expense ratios do
not include such expenses.
(e) Recognition of net investment income by the Life Vision Funds is affected by
the timing of the declaration of dividends by the STI Classic Funds in which
the Life Vision Funds invest.
(f) Commenced operations on October 16, 2003.
(g) Commenced operations on March 11, 2003.
(h) Commenced operations on November 6, 2003.
(i) Commenced operations on November 11, 2003.
(j) Commenced operations on November 5, 2003.
(k) Commenced operations on October 10, 2003.
(l) Commenced operations on November 30, 2001.
(m) Commenced operations on October 27, 2003.
(n) Commenced operations on December 12, 1999.
(o) Commenced operations on October 9, 2003.
(p) Commenced operations on August 7, 2003.
(q) Commenced operations on October 8, 2003.
(r) Commenced operations on October 13, 2003.
(s) Commenced operations on October 14, 2003.
117
NOTES TO FINANCIAL STATEMENTS
STI CLASSIC EQUITY FUNDS March 31, 2005
1. Organization
The STI Classic Funds (the "Trust") was organized as a Massachusetts business
trust under a Declaration of Trust dated January 15, 1992. The Trust is
registered under the Investment Company Act of 1940, as amended, as an open-end
management investment company offering 49 funds as of March 31, 2005. The
financial statements presented herein are those of the Aggressive Growth Stock
Fund, the Balanced Fund, the Capital Appreciation Fund, the Emerging Growth
Stock Fund, the Growth and Income Fund, the International Equity Fund, the
International Equity Index Fund, the Life Vision Aggressive Growth Fund, the
Life Vision Conservative Fund, the Life Vision Growth and Income Fund, the Life
Vision Moderate Growth Fund, the Mid-Cap Equity Fund, the Mid-Cap Value Equity
Fund, the Small Cap Growth Stock Fund, the Small Cap Value Equity Fund, the
Strategic Quantitative Equity Fund, the Tax Sensitive Growth Stock Fund and the
Value Income Stock Fund (each a "Fund" and collectively the "Funds"). The Funds
may offer the following share classes: T Shares, A Shares and L Shares or B
Shares. The Trust is authorized to issue an unlimited number of shares without
par value. Shareholders have no preemptive rights. The financial statements of
the remaining funds are presented separately. The assets of each Fund are
segregated, and a shareholder's interest is limited to the Fund in which shares
are held. The Funds' prospectus provides a description of the Funds' investment
objectives, policies and strategies.
Effective April 30, 2004, the Small Cap Value Equity Fund was closed to new
investors.
At a regular meeting of the Board of Trustees (the "Board") on February 15,
2005, the Board voted to change the fiscal and tax year ends of the Funds from
May 31 to March 31.
Under the Trust's organizational documents, its officers and trustees are
indemnified against certain liabilities arising out of the performance of their
duties to the Trust. In addition, in the normal course of business, the Trust
enters into contracts with their vendors and others that provide for general
indemnifications. The Trust's maximum exposure under these arrangements is
unknown as this would involve future claims that may be made against the Trust.
However, based on experience, the Trust expects that risk of loss to be remote.
2. Reorganizations
Aggressive Growth Stock Fund -- The Trust entered into an agreement and plan of
reorganization on behalf of the Information and Technology Fund and the
Aggressive Growth Stock Fund, that provides for the acquisition by the
Aggressive Growth Stock Fund of all of the assets, subject to stated
liabilities, of the Information and Technology Fund, in exchange for T Shares, A
Shares, and L Shares of the Aggressive Growth Stock Fund, the distribution of
such shares to the shareholders of the Information and Technology Fund and the
dissolution of the Information and Technology Fund. The reorganization, which
qualified as a tax-free exchange for Federal income tax purposes, was completed
on December 20, 2004 following approval by shareholders of the Information and
Technology Fund at a special shareholder meeting. The following is a summary of
shares outstanding, net assets and net asset value per share issued immediately
before and after the reorganization:
<Table>
<Caption>
Before Reorganization After Reorganization
----------------------------------- --------------------
Information and Aggressive Growth Aggressive Growth
Technology Fund Stock Fund Stock Fund
--------------- ----------------- --------------------
Shares...................................................... 1,905,466 4,386,350 5,815,961
Net Assets.................................................. $14,935,816 $45,982,135 $60,917,951
Net Asset Value:
T Shares.................................................. $ 8.01 $ 10.48 $ 10.48
A Shares.................................................. $ 7.98 $ 10.45 $ 10.45
L Shares.................................................. $ 7.63 $ 10.40 $ 10.40
Net unrealized appreciation............................... $ 1,954,611 $ 3,927,078 $ 5,881,689
</Table>
Growth and Income Fund -- The Trust entered into an agreement and plan of
reorganization with the CCMI Funds pursuant to which all of the assets, subject
to stated liabilities, of each portfolio of the CCMI Funds were transferred to a
corresponding series of the Trust in exchange for a corresponding Class of
shares of that series. The reorganization, which qualified as a tax-free
exchange for Federal income tax purposes, was
118
NOTES TO FINANCIAL STATEMENTS (continued)
STI CLASSIC EQUITY FUNDS March 31, 2005
effective on March 21, 2005, following approval by shareholders of the CCMI
Funds at a special shareholder meeting on March 18, 2004. The following is a
summary of shares outstanding, net assets and net asset value per share issued
immediately before and after the reorganization:
<Table>
<Caption>
Before Reorganization After Reorganization
------------------------------- --------------------
Growth and Growth and
CCMI Equity Fund Income Fund Income Fund
---------------- ------------ --------------------
Shares...................................................... 7,387,034 55,660,341 62,266,100
Net Assets.................................................. $106,677,983 $898,832,391 $1,005,510,374
Net Asset Value:
T Shares (a).............................................. $ 16.15 $ 16.15
A Shares.................................................. $ 14.44
Net unrealized appreciation............................... $ 23,786,949 $200,133,667 $ 223,920,616
</Table>
(a) Effective March 21, 2005 the CCMI Equity Fund Class A Shares merged into the
Growth and Income Fund Class T Shares.
3. Significant Accounting Policies
The following is a summary of significant accounting policies followed by the
Trust in the preparation of its financial statements. These policies are in
conformity with accounting principles generally accepted in the United States of
America ("GAAP"). The preparation of financial statements in accordance with
GAAP requires management to make estimates and assumptions that affect the
reported amounts of assets and liabilities and disclosure of contingent assets
and liabilities at the date of the financial statements and the reported amounts
of income and expense during the reporting period. The actual results could
differ from these estimates.
Security Valuation -- Securities listed on a securities exchange, market or
automated quotation system for which quotations are readily available
(except for securities traded on NASDAQ), including securities traded over
the counter, are valued at the last quoted sale price on the primary
exchange or market (foreign or domestic) on which they are traded on
valuation date (or at approximately 4:00 pm Eastern Time if a security's
primary exchange is normally open at that time), or, if there is no such
reported sale on the valuation date, at the most recent quoted bid price.
For securities traded on NASDAQ, the NASDAQ Official Closing Price will be
used. If available, debt securities are priced based upon valuations
provided by independent, third-party pricing agents. Such values generally
reflect the last reported sales price if the security is actively traded.
The third-party pricing agents may also value debt securities at an
evaluated bid price by employing methodologies that utilize actual market
transactions, broker-supplied valuations, or other methodologies designed
to identify the market value for such securities. Debt obligations with
remaining maturities of sixty days or less may be valued at their amortized
cost, which approximates market value. The prices for foreign securities
are reported in local currency and converted to U.S. dollars at the
exchange rate of such currencies against the U.S. dollar, as of the close
of regular trading on the New York Stock Exchange (usually 4:00 pm Eastern
Time), as provided by an independent pricing service approved by the Funds'
Board of Trustees (the "Board"). If a security price cannot be obtained
from an independent, third-party pricing agent, the Funds' administrator
shall seek to obtain a bid price from at least one independent broker.
Securities for which market prices are not "readily available" are valued
in accordance with Fair Value Procedures established by the Board. The
Funds' Fair Value Procedures will be performed and monitored by a Fair
Value Committee (the "Committee") designated by the Board. Some of the more
common reasons that may necessitate that a security be valued using Fair
Value Procedures include, but are not limited to: the security's trading
has been halted or suspended; the security has been de-listed from a
national exchange; the security's primary trading market is temporarily
closed at a time when under normal conditions it would be open; or the
security's primary pricing source is not able or willing to provide a
price. When a security is valued in accordance with the Fair Value
Procedures, the Committee will determine the value after taking into
consideration relevant information reasonably available to the Committee.
119
For securities that principally trade on a foreign market or exchange, a
significant gap in time can exist between the time of a particular
security's last trade and the time at which a Fund calculates its net asset
value. The closing prices of such securities may no longer reflect their
market value at the time the Fund calculates net asset value if an event
that could materially affect the value of those securities (a "Significant
Event") has occurred between the time of the security's last close and the
time that the Fund calculates net asset value. A Significant Event may
relate to a single issuer or to an entire market sector. If the adviser or
sub-adviser of a Fund becomes aware of a Significant Event that has
occurred with respect to a security or group of securities after the
closing of the exchange or market on which the security or securities
principally trade, but before the time at which the Fund calculates net
asset value, it shall immediately notify the Funds' administrator and may
preauthorize the Funds' administrator to utilize a pricing service
authorized by the Board (a "Fair Value Pricing Service") that has been
designed to determine a fair value. On a day when a Fair Value Pricing
Service is so utilized pursuant to a preauthorization, the Committee need
not meet. If the adviser or sub-adviser does not pre-authorize the Fund's
administrator to utilize a Fair Value Pricing Service, the adviser or sub-
adviser will request that a Fair Value Committee Meeting be called. In
addition, the Funds' administrator monitors price movements among certain
selected indices, securities and/or baskets of securities that may be an
indicator that the closing prices received earlier from foreign exchanges
or markets may not reflect market value at the time the Fund calculates net
asset value. If price movements in a monitored index or security exceed
levels established by the Funds ("Trigger Points"), the Funds may use a
systematic valuation model provided by an independent third party to fair
value their international equity securities.
The assets of the Life Vision Aggressive Growth Fund, the Life Vision
Conservative Fund, the Life Vision Growth and Income Fund and the Life
Vision Moderate Growth Fund consist of investments in underlying affiliated
investment companies, which are valued at their respective daily net asset
values.
Security Transactions and Investment Income -- Security transactions are
accounted for no later than one business day after trade date. However, for
financial reporting purposes, securities transactions are reported on trade
date. Interest income is recognized on an accrual basis. Costs used in
determining net realized gains and losses on the sales of investment
securities are those of the specific securities sold, adjusted for the
accretion or amortization of purchase discounts or premiums during the
respective holding period. Dividend income is recorded on the ex-dividend
date.
Effective June 1, 2004, the Balanced Fund changed its amortization and
accretion methodology on premiums and discounts on fixed income securities
in order to conform more closely to Internal Revenue Code requirements. The
cumulative effect of the accounting change had no impact on total net
assets, but resulted in an increase in interest income of $96,628 and a
decrease in unrealized appreciation/(depreciation) of $96,628. The
statement of changes in net assets and financial highlights for prior
periods have not been restated to reflect this change in accounting
methodology.
Repurchase Agreements -- The Funds may purchase instruments from financial
institutions, such as banks and broker-dealers, subject to the seller's
agreement to repurchase them at an agreed upon time and price ("repurchase
agreement"). A third party custodian bank takes possession of the
underlying securities ("collateral") of a repurchase agreement, the value
of which exceeds the principal amount of the repurchase transaction,
including accrued interest. In the event of default on the obligation to
repurchase, each Fund has the right to liquidate the collateral and apply
the proceeds in satisfaction of the obligation. In the event of default or
bankruptcy by the counterparty to the agreement, realization and/or
retention of the collateral or proceeds may be subject to legal
proceedings.
Redemption Fees -- The Funds may charge a redemption fee of up to 2% of
redemption proceeds, which will automatically be paid to the Fund. The
International Equity Fund had
120
NOTES TO FINANCIAL STATEMENTS (continued)
STI CLASSIC EQUITY FUNDS March 31, 2005
redemption fees for the period ended March 31, 2005, which are shown on the
Statements of Changes in Net Assets.
Foreign Currency Translation -- The books and records of the International
Equity and the International Equity Index Funds are maintained in U.S.
dollars on the following basis: (i) market value of investment securities,
assets and liabilities at the current rate of exchange; and (ii) purchases
and sales of investment securities, income and expenses at the relevant
rates of exchange prevailing on the respective dates of such transactions.
The International Equity and the International Equity Index Funds do not
isolate the portion of operations resulting from changes in foreign
exchange rates on investments from fluctuations arising from changes in
market prices of securities held. Such fluctuations are included with the
net realized and unrealized gain or loss from investments and foreign
currencies.
Forward Foreign Currency Contracts -- The International Equity and the
International Equity Index Funds may enter into forward foreign currency
contracts as hedges against either specific transactions, fund positions or
anticipated fund positions. All commitments are "marked-to-market" daily at
the applicable foreign exchange rate, and any resulting unrealized gains or
losses are recorded currently. The Fund realizes gains and losses at the
time forward contracts are extinguished. Unrealized gains or losses on
outstanding positions in forward foreign currency contracts held at the
close of the year are recognized as ordinary income or loss for Federal
income tax purposes. As of March 31, 2005, there were no open forward
foreign currency contracts.
TBA Purchase Commitments -- The Balanced Fund may enter into "TBA" (To Be
Announced) purchase commitments to purchase securities for a fixed price at
a future date beyond customary settlement time. TBA purchase commitments
may be considered securities in themselves, and involve a risk of loss if
the value of the security to be purchased declines prior to settlement
date. Unsettled TBA purchase commitments are valued at the current market
value of the underlying securities, generally according to the procedures
described under "Security Valuation."
Restricted Securities -- Certain of the Funds' investments are restricted
as to resale. As of March 31, 2005, all of these restricted securities have
been deemed liquid by the Funds' advisers based upon procedures approved by
the Board.
Expenses -- Expenses that are directly related to a specific Fund are
charged to that Fund. Class specific expenses, such as distribution fees,
are borne by that class. Other operating expenses of the Trust are
pro-rated to the Funds on the basis of relative net assets or another
appropriate basis.
In addition to the Funds' direct expenses, shareholders of the Life Vision
Aggressive Growth Fund, Life Vision Conservative Fund, Life Vision Growth
and Income Fund and Life Vision Moderate Growth Fund (the "Life Vision
Funds") also bear a proportionate share of the underlying Funds' expenses.
Classes -- Income, non-class specific expenses and realized/unrealized
gains and losses are allocated to the respective classes on the basis of
the relative daily net assets.
Offering Costs -- Offering costs of the Aggressive Growth Stock Fund and
the Emerging Growth Stock Fund, which each commenced operations on February
23, 2004, include costs of printing initial prospectuses and registration
fees are being amortized to expenses over twelve months.
Dividends and Distributions to Shareholders -- Dividends and distributions
to shareholders are recorded on the ex-dividend date. Dividends from net
investment income, if any, are declared and paid each calendar quarter by
the Equity Funds, except for the International Equity and the International
Equity Index Funds which distribute income annually. Any net realized
capital gains on sales of securities are distributed to shareholders at
least annually. However, to the extent that net realized capital gains can
be offset by capital loss carryovers, such gains will not be distributed.
The amounts of dividends from net investment income and of distributions
from net realized
121
gains are determined in accordance with federal income tax regulations,
which may differ from GAAP. These "book/tax" differences are either
considered temporary or permanent in nature. To the extent these
differences are permanent in nature (i.e. foreign currency transactions),
such amounts are reclassified within the composition of net assets based on
their federal tax-basis treatment; temporary differences do not require
reclassification.
Compensating Balances -- If a Fund has a cash overdraft in excess of
$100,000 it is required to leave 110% in compensating balance with SunTrust
Bank (the "Custodian"), a wholly owned subsidiary of SunTrust Banks, Inc.,
on the following day. If a Fund has a positive cash balance in excess of
$100,000 it is allowed to overdraw 90% of the balance with the Custodian on
the following business day. This does not apply to the International Equity
Fund or International Equity Index Fund.
4. Agreements and Other Transactions with Affiliates
Investment Advisory Agreement -- The Trust and Trusco Capital Management,
Inc. (the "Investment Adviser"), a wholly owned subsidiary of SunTrust
Banks, Inc., have entered into advisory agreements.
Under terms of the agreements, the Funds are charged the following annual
fees which are computed daily and paid monthly based upon average daily net
assets:
<Table>
<Caption>
Maximum Net Net
Annual Fees Fees
Advisory Paid Paid
Fee 2005 2004
-------- ---- ----
Aggressive Growth Stock Fund....... 1.25% 1.05% 1.10%
Balanced Fund...................... 0.95 0.92 0.92
Capital Appreciation Fund.......... 1.15 1.13 1.13
Emerging Growth Stock Fund......... 1.25 1.10 1.10
Growth and Income Fund............. 0.90 0.90 0.90
International Equity Fund.......... 1.25 1.25 1.25
International Equity Index Fund.... 0.90 0.81 0.81
Life Vision Aggressive Growth
Fund............................. 0.25 0.12 0.11
Life Vision Conservative Fund...... 0.25 0.11 0.10
Life Vision Growth and Income
Fund............................. 0.25 0.14 0.14
Life Vision Moderate Growth Fund... 0.25 0.14 0.14
Mid-Cap Equity Fund................ 1.15 1.13 1.13
Mid-Cap Value Equity Fund.......... 1.25 1.15 1.15
</Table>
<Table>
<Caption>
Maximum Net Net
Annual Fees Fees
Advisory Paid Paid
Fee 2005 2004
-------- ---- ----
Small Cap Growth Stock Fund........ 1.15 1.15 1.15
Small Cap Value Equity Fund........ 1.15 1.15 1.15
Strategic Quantitative Equity
Fund............................. 1.15 1.00 1.00
Tax Sensitive Growth Stock Fund.... 1.15 1.15 1.15
Value Income Stock Fund............ 0.80 0.80 0.80
</Table>
The Investment Adviser has voluntarily agreed to waive all or a portion of
its fees. Fee waivers are voluntary and may be terminated at any time.
Administration, Fund Accounting and Transfer Agency Agreement -- The Trust
and BISYS Fund Services Ohio, Inc. (the "Administrator") are parties to a
Master Services Agreement, under which the Administrator provides
administrative, fund accounting and transfer agent services for an annual
fee (expressed as a percentage of the combined average daily net assets of
the Trust and STI Classic Variable Trust) of: 0.0275% up to $25 billion,
0.0225% on the next $5 billion and 0.0175% for over $30 billion, plus an
additional class fee of $2,500 per class annum, applicable to each
additional class of shares over 145 classes of shares.
Prior to July 26, 2004, SEI Investments Global Funds Services ("SEI")
served as the Administrator and provided administrative services for an
annual fee (expressed as a percentage of the combined average daily net
assets of the Trust and STI Classic Variable Trust) of: 0.12% up to $1
billion, 0.09% on the next $4 billion, 0.07% on the next $3 billion, 0.065%
on the next $2 billion and 0.06% for over $10 billion. For the period of
June 1, 2004 to July 23, 2004, SEI received fees totaling $2,333,093 from
the Trust for its services.
Per the executed Master Services Agreement, BISYS Fund Services Ohio, Inc.
has agreed to pay a total of $325,000 per annum towards the insurance
premiums payable annually by the Trust and the STI Classic Variable Trust.
$300,000 will be paid towards the premium for the Directors and Officers
Liability/Errors and Omissions Insurance Policy, and $25,000 will be paid
towards the premium for the Fidelity Bond Policy.
122
NOTES TO FINANCIAL STATEMENTS (continued)
STI CLASSIC EQUITY FUNDS March 31, 2005
Distribution Agreement -- The Trust and BISYS Fund Services Limited
Partnership (the "Distributor") are parties to a Distribution Agreement
effective July 26, 2004. The Distributor will receive no fees for its
distribution services under the agreement for the T Shares of any Fund.
With respect to the A Shares, L Shares and B Shares, the Distributor
receives amounts, pursuant to a Distribution Plan and (in the case of L
Shares and B Shares) a Distribution and Service Plan, based upon average
daily net assets of each respective class which are computed daily and paid
monthly, as outlined in the table below:
<Table>
<Caption>
Maximum Maximum
Maximum Net Net L Share Net Net B Share Net Net
A Share Fees Fees Distribution Fees Fees Distribution Fees Fees
Distribution Paid Paid and Paid Paid and Paid Paid
Fee 2005 2004 Service Fee 2005 2004 Service Fee 2005 2004
------------ ---- ---- ------------ ---- ---- ------------ ---- ----
Aggressive Growth Stock Fund............ 0.35% --% 0.25% 1.00% 0.80% 0.70% N/A N/A N/A
Balanced Fund........................... 0.28 0.25 0.11 1.00 0.98 0.94 N/A N/A N/A
Capital Appreciation Fund............... 0.68 0.66 0.58 1.00 0.99 0.94 N/A N/A N/A
Emerging Growth Stock Fund.............. 0.35 -- 0.25 1.00 -- 0.70 N/A N/A N/A
Growth and Income Fund.................. 0.25 0.20 0.07 1.00 0.94 0.76 N/A N/A N/A
International Equity Fund............... 0.33 0.30 0.11 1.00 0.95 0.68 N/A N/A N/A
International Equity Index Fund......... 0.38 0.38 0.35 1.00 0.96 0.69 N/A N/A N/A
Life Vision Aggressive Growth Fund...... 0.50 0.17 -- N/A N/A N/A 1.00% 0.76% 0.19%
Life Vision Conservative Fund........... 0.40 -- -- N/A N/A N/A 1.00 0.73 0.29
Life Vision Growth and Income Fund...... 0.50 0.27 -- N/A N/A N/A 1.00 0.78 0.50
Life Vision Moderate Growth Fund........ 0.50 0.21 -- N/A N/A N/A 1.00 0.68 0.55
Mid-Cap Equity Fund..................... 0.43 0.40 0.26 1.00 0.95 0.77 N/A N/A N/A
Mid-Cap Value Equity Fund............... 0.40 0.19 -- 1.00 0.62 0.26 N/A N/A N/A
Small Cap Growth Stock Fund............. 0.50 0.38 0.23 1.00 0.98 0.91 N/A N/A N/A
Small Cap Value Equity Fund............. 0.33 0.19 -- 1.00 0.25 0.81 N/A N/A N/A
Strategic Quantitative Equity Fund...... 0.25 -- -- 1.00 0.89 0.44 N/A N/A N/A
Tax Sensitive Growth Stock Fund......... 0.40 0.05 -- 1.00 0.98 0.91 N/A N/A N/A
Value Income Stock Fund................. 0.33 0.33 0.30 1.00 0.99 0.96 N/A N/A N/A
</Table>
The Distributor has voluntarily agreed to waive all or a portion of its
fees. Fee waivers voluntary and may be terminated at any time.
Prior to July 26, 2004, SEI Investments Distribution Co. served as the
distributor. SEI Investments Distribution Co. had voluntarily agreed to
waive all or a portion of its fees and to reimburse fund expenses.
Transfer Agency Agreement -- The Trust and SunTrust Securities Inc.
("STS"), a wholly-owned subsidiary of SunTrust Banks, Inc., are parties to
an agreement under which STS provides certain transfer agency account
activity processing and servicing. The transfer agency service fees are
based upon a monthly per account charge for the total shareholder accounts
at the Trust's transfer agent. These fees are presented on the Statements
of Operations as Transfer Agent Shareholder Servicing Fees.
Prior to July 26, 2004, Federated Services Company provided transfer agency
services to the Trust.
Custodian Agreements -- SunTrust Bank acts as custodian for all of the
Funds except the International Equity Fund and the International Equity
Index Fund, which utilize Brown Brothers Harriman & Co. as custodian.
Custodians are paid on the basis of the net assets and transaction costs of
the Funds. The custodians play no role in determining the investment
policies of the Trust or which securities are to be purchased or sold in
the Funds.
Other -- Certain officers of the Trust are also officers of the Adviser,
Administrator and/or the Distributor. Such officers (with the exception of
the Chief Compliance Officer) receive no fees by the Trust for serving as
officers of the Trust. Each of the eight trustees are compensated $43,000
($344,000 total) and the Chairman
123
of the Board receives $50,000 in meeting and retainer fees, plus the
reimbursement for certain expenses incurred. Effective October 5, 2004,
Trusco Capital Management, Inc. began providing an employee to serve as
Chief Compliance Officer for the Trust and provide certain related
services, and will receive an annual fee for this service of $120,000. In
addition, BISYS provides an employee and staff to serve as an assistant to
the Chief Compliance Officer for the Trust, including providing certain
related services, and will receive a fee for these services of $150,000.
Both fees are allocated across the assets of the Trust and the STI Classic
Variable Trust. For the period ended March 31, 2005, the total related
amounts paid by the Trust were $319,892.
The Trust has entered into an agreement with SunTrust Robinson Humphrey, a
division of SunTrust Capital Markets, Inc. which is a direct non-bank
subsidiary of SunTrust Banks, Inc. to act as an agent in placing repurchase
agreements for the Trust. For the period ended March 31, 2005, the
following Funds paid SunTrust Robinson Humphrey, through a reduction in the
yield earned by the Funds on those repurchase agreements (in thousands):
<Table>
<Caption>
2005 2004
Fees Fees
---- ----
Aggressive Growth Stock Fund.............. $ 1 $--
Balanced Fund............................. 3 2
Capital Appreciation Fund................. 21 11
Emerging Growth Stock Fund................ -- --
Mid-Cap Equity Fund....................... 2 2
Small Cap Growth Stock Fund............... 9 2
Small Cap Value Equity Fund............... 3 6
Strategic Quantitative Equity Fund........ -- --
Tax Sensitive Growth Stock Fund........... 1 1
Value Income Stock Fund................... 13 11
</Table>
5. Investment Transactions
The cost of purchases and the proceeds from sales and maturities of securities,
excluding short-term investments and U.S. Government securities, for the period
ended March 31, 2005, were as follows (in thousands):
<Table>
<Caption>
Sales and
Purchases Maturities
---------- ----------
Aggressive Growth Stock Fund.... $ 60,233 $ 18,374
Balanced Fund................... 178,277 271,039
Capital Appreciation Fund....... 1,404,003 1,204,932
Emerging Growth Stock Fund...... 17,784 10,396
Growth and Income Fund.......... 506,963 428,360
International Equity Fund....... 227,225 157,229
International Equity Index
Fund.......................... 130,299 88,246
Life Vision Aggressive Growth
Fund.......................... 17,876 13,334
Life Vision Conservative Fund... 7,991 7,080
Life Vision Growth and Income
Fund.......................... 74,995 57,603
Life Vision Moderate Growth
Fund.......................... 132,136 119,697
Mid-Cap Equity Fund............. 144,070 152,252
Mid-Cap Value Equity Fund....... 250,264 212,547
Small Cap Growth Stock Fund..... 670,308 634,689
Small Cap Value Equity Fund..... 130,978 207,559
Strategic Quantitative Equity
Fund.......................... 295,584 281,894
Tax Sensitive Growth Stock
Fund.......................... 97,653 170,684
Value Income Stock Fund......... 743,713 759,510
</Table>
The cost of purchases and proceeds from sales and maturities of long-term U.S.
Government securities for the Balanced Fund during the period ended March 31,
2005 in thousands was $196,680 and $171,223, respectively.
124
NOTES TO FINANCIAL STATEMENTS (continued)
STI CLASSIC EQUITY FUNDS March 31, 2005
6. Capital Share Transactions
Capital share transactions for the Funds were as follows (in thousands):
<Table>
<Caption>
Aggressive Growth Balanced Capital Appreciation
Stock Fund Fund Fund
---------------------- --------------------------------- ---------------------------------
06/01/04- 02/23/04*- 06/01/04- 06/01/03- 06/01/02- 06/01/04- 06/01/03- 06/01/02-
03/31/05 05/31/04 03/31/05 05/31/04 05/31/03 03/31/05 05/31/04 05/31/03
--------- ---------- --------- --------- --------- --------- --------- ---------
Capital Transactions
T Shares(1)
Proceeds from Shares Issued.... $40,408 $20,288 $ 35,927 $ 70,058 $ 64,673 $ 544,096 $279,768 $243,462
Proceeds from Shares Issued in
Acquisition.................. 8,427 -- -- -- -- -- -- --
Dividends Reinvested........... -- -- 5,707 3,612 4,061 18,371 -- --
Cost of Shares Redeemed........ (7,169) (115) (91,992) (64,462) (75,973) (304,351) (253,060) (237,698)
------- ------- -------- -------- -------- --------- -------- --------
Change in Net Assets from T
Shares Transactions...... $41,666 $20,173 $(50,358) $ 9,208 $ (7,239) $ 258,116 $ 26,708 $ 5,764
------- ------- -------- -------- -------- --------- -------- --------
A Shares(2)
Proceeds from Shares Issued.... $ 115 $ 48 $ 958 $ 2,139 $ 1,079 $ 9,187 $ 15,738 $ 23,224
Proceeds from Shares Issued in
Acquisition.................. 7 -- -- -- -- -- -- --
Dividends Reinvested........... -- -- 211 112 134 2,016 -- --
Cost of Shares Redeemed........ (32) -- (1,437) (1,862) (1,735) (28,451) (26,645) (27,320)
------- ------- -------- -------- -------- --------- -------- --------
Change in Net Assets from A
Shares Transactions...... $ 90 $ 48 $ (268) $ 389 $ (522) $ (17,248) $(10,907) $ (4,096)
------- ------- -------- -------- -------- --------- -------- --------
L Shares(3)
Proceeds from Shares Issued.... $ -- $ 72 $ 1,374 $ 18,913 $ 16,361 $ 2,626 $ 21,720 $ 22,663
Proceeds from Shares Issued in
Acquisition.................. 6,502 -- -- -- -- -- -- --
Dividends Reinvested........... -- -- 826 376 584 1,338 -- --
Cost of Shares Redeemed........ (2,776) (7) (22,108) (23,445) (22,271) (27,217) (26,198) (26,440)
------- ------- -------- -------- -------- --------- -------- --------
Change in Net Assets from L
Shares Transactions...... $ 3,726 $ 65 $(19,908) $ (4,156) $ (5,326) $ (23,253) $ (4,478) $ (3,777)
------- ------- -------- -------- -------- --------- -------- --------
Total Change from Capital
Transactions................... $45,482 $20,286 $(70,534) $ 5,441 $(13,087) $ 217,615 $ 11,323 $ (2,109)
======= ======= ======== ======== ======== ========= ======== ========
Share Transactions:
T Shares(1)
Issued......................... 3,857 2,062 2,927 5,833 5,631 44,144 23,848 23,181
Issued in Acquisition.......... 804 -- -- -- -- -- -- --
Reinvested..................... -- -- 459 299 356 1,461 -- --
Redeemed....................... (744) (12) (7,420) (5,342) (6,654) (24,695) (21,521) (22,631)
------- ------- -------- -------- -------- --------- -------- --------
Change in T Shares
Transactions............. 3,917 2,050 (4,034) 790 (667) 20,910 2,327 550
------- ------- -------- -------- -------- --------- -------- --------
A Shares(2)
Issued......................... 11 5 78 176 94 787 1,390 2,305
Issued in Acquisition.......... 1 -- -- -- -- -- -- --
Reinvested..................... -- -- 17 9 12 168 -- --
Redeemed....................... (3) -- (116) (152) (151) (2,422) (2,350) (2,724)
------- ------- -------- -------- -------- --------- -------- --------
Change in A Shares
Transactions............. 9 5 (21) 33 (45) (1,467) (960) (419)
------- ------- -------- -------- -------- --------- -------- --------
L Shares(3)
Issued......................... 18 7 112 1,596 1,446 236 2,046 2,333
Issued in Acquisition.......... 624 -- -- -- -- -- -- --
Reinvested..................... -- -- 67 31 52 117 -- --
Redeemed....................... (57) -- (1,806) (1,944) (1,982) (2,438) (2,409) (2,752)
------- ------- -------- -------- -------- --------- -------- --------
Change in L Shares
Transactions............. 585 7 (1,627) (317) (484) (2,085) (363) (419)
------- ------- -------- -------- -------- --------- -------- --------
Change in Share Transactions..... 4,511 2,062 (5,682) 506 (1,196) 17,358 1,004 (288)
======= ======= ======== ======== ======== ========= ======== ========
</Table>
125
<Table>
<Caption>
Emerging Growth Growth and International
Stock Fund Income Fund Equity Fund
- ---------------------- ---------------------------------- ---------------------------------
06/01/04- 02/23/04*- 06/01/04- 06/01/03- 06/01/02- 06/01/04- 06/01/03- 06/01/02-
03/31/05 05/31/04 03/31/05 05/31/04 05/31/03 03/31/05 05/31/04 05/31/03
- --------- ---------- ---------- --------- --------- --------- --------- ---------
$ 9,477 $13,349 $ 147,236 $ 187,428 $ 97,378 $140,746 $144,029 $ 86,628
-- -- 106,678 -- -- -- -- --
-- -- 17,106 2,566 2,307 1,260 1,379 611
(1,743) (221) (114,963) (136,004) (200,850) (50,085) (54,870) (108,037)
------- ------- --------- --------- --------- -------- -------- ---------
$ 7,734 $13,128 $ 156,057 $ 53,990 $(101,165) $ 91,921 $ 90,538 $ (20,798)
------- ------- --------- --------- --------- -------- -------- ---------
$ 75 $ 40 $ 7,636 $ 11,177 $ 12,024 $ 1,904 $ 16,666 $ 14,843
-- -- -- -- -- -- -- --
-- -- 1,302 304 247 47 67 18
(31) -- (14,015) (9,607) (8,883) (1,679) (17,896) (13,138)
------- ------- --------- --------- --------- -------- -------- ---------
$ 44 $ 40 $ (5,077) $ 1,874 $ 3,388 $ 272 $ (1,163) $ 1,723
------- ------- --------- --------- --------- -------- -------- ---------
$ 10 $ 44 $ 7,083 $ 29,013 $ 16,261 $ 1,329 $ 1,875 $ 6,250
-- -- -- -- -- -- -- --
-- -- 2,166 154 119 1 43 --
(9) (7) (26,739) (21,942) (24,930) (1,868) (1,523) (6,195)
------- ------- --------- --------- --------- -------- -------- ---------
$ 1 $ 37 $ (17,490) $ 7,225 $ (8,550) $ (538) $ 395 $ 55
------- ------- --------- --------- --------- -------- -------- ---------
$ 7,779 $13,205 $ 133,490 $ 63,089 $(106,327) $ 91,655 $ 89,770 $ (19,020)
======= ======= ========= ========= ========= ======== ======== =========
1,031 1,367 9,472 13,896 8,406 12,488 14,743 10,800
-- -- 6,605 -- -- -- -- --
-- -- 1,069 190 201 108 141 83
(190) (24) (7,447) (9,941) (17,009) (4,485) (6,032) (14,173)
------- ------- --------- --------- --------- -------- -------- ---------
841 1,343 9,699 4,145 (8,402) 8,111 8,852 (3,290)
------- ------- --------- --------- --------- -------- -------- ---------
8 4 496 814 1,049 175 2,018 2,102
-- -- -- -- -- -- -- --
-- -- 81 22 21 4 7 3
(3) -- (905) (697) (766) (154) (2,130) (1,869)
------- ------- --------- --------- --------- -------- -------- ---------
5 4 (328) 139 304 25 (105) 236
------- ------- --------- --------- --------- -------- -------- ---------
1 5 465 2,178 1,416 128 213 890
-- -- -- -- -- -- -- --
-- -- 136 11 11 -- 5 --
(1) (1) (1,750) (1,603) (2,212) (181) (173) (883)
------- ------- --------- --------- --------- -------- -------- ---------
-- 4 (1,149) 586 (785) (53) 45 7
------- ------- --------- --------- --------- -------- -------- ---------
846 1,351 8,222 4,870 (8,883) 8,083 8,792 (3,047)
======= ======= ========= ========= ========= ======== ======== =========
</Table>
126
NOTES TO FINANCIAL STATEMENTS (continued)
STI CLASSIC EQUITY FUNDS March 31, 2005
<Table>
<Caption>
International Equity Life Vision
Index Fund Aggressive Growth Fund
--------------------------------- ---------------------------------
06/01/04- 06/01/03- 06/01/02- 06/01/04- 06/01/03- 06/01/02-
03/31/05 05/31/04 05/31/03 03/31/05 05/31/04 05/31/03
--------- --------- --------- --------- --------- ---------
Capital Transactions
T Shares(1)
Proceeds from Shares Issued............ $157,372 $ 83,517 $ 62,225 $ 8,047 $ 8,576 $ 5,003
Dividends Reinvested................... 5,808 3,067 835 445 132 91
Cost of Shares Redeemed................ (53,751) (64,875) (62,128) (6,786) (4,939) (7,185)
-------- -------- -------- ------- ------- -------
Change in Net Assets from T Shares
Transactions..................... $109,429 $ 21,709 $ 932 $ 1,706 $ 3,769 $(2,091)
-------- -------- -------- ------- ------- -------
A Shares(2)
Proceeds from Shares Issued............ $ 2,408 $ 22,245 $ 21,764 $ 1,337 $ 858 $ --
Dividends Reinvested................... 73 147 4 15 -- --
Cost of Shares Redeemed................ (11,540) (21,325) (15,195) (254) -- --
-------- -------- -------- ------- ------- -------
Change in Net Assets from A Shares
Transactions..................... $ (9,059) $ 1,067 $ 6,573 $ 1,098 $ 858 $ --
-------- -------- -------- ------- ------- -------
L Shares(3)
Proceeds from Shares Issued............ $ 885 $ 2,143 $ 4,554
Dividends Reinvested................... 44 20 --
Cost of Shares Redeemed................ (1,208) (1,117) (4,487)
-------- -------- -------- ------- ------- -------
Change in Net Assets from L Shares
Transactions..................... $ (279) $ 1,046 $ 67
-------- -------- -------- ------- ------- -------
B Shares(4)
Proceeds from Shares Issued............ $ 994 $ 3,147 $ 975
Dividends Reinvested................... 29 4 --
Cost of Shares Redeemed................ (321) (291) (1)
-------- -------- -------- ------- ------- -------
Change in Net Assets from B Shares
Transactions..................... $ 702 $ 2,860 $ 974
-------- -------- -------- ------- ------- -------
Total Change from Capital
Transactions........................... $100,091 $ 23,822 $ 7,572 $ 3,506 $ 7,487 $(1,117)
======== ======== ======== ======= ======= =======
Share Transactions:
T Shares(1)
Issued................................. 12,840 8,041 7,835 751 894 625
Reinvested............................. 459 290 108 40 14 11
Redeemed............................... (4,534) (6,365) (7,797) (636) (509) (877)
-------- -------- -------- ------- ------- -------
Change in T Shares Transactions.... 8,765 1,966 146 155 399 (241)
-------- -------- -------- ------- ------- -------
A Shares(2)
Issued................................. 212 2,436 2,898 126 85 --
Reinvested............................. 6 14 -- 1 -- --
Redeemed............................... (995) (2,267) (2,039) (24) -- --
-------- -------- -------- ------- ------- -------
Change in A Shares Transactions.... (777) 183 859 103 85 --
-------- -------- -------- ------- ------- -------
L Shares(3)
Issued................................. 78 215 600
Reinvested............................. 4 2 --
Redeemed............................... (103) (112) (588)
-------- -------- -------- ------- ------- -------
Change in L Shares Transactions.... (21) 105 12
-------- -------- -------- ------- ------- -------
B Shares(4)
Issued................................. 95 334 123
Reinvested............................. 3 1 --
Redeemed............................... (31) (29) --
-------- -------- -------- ------- ------- -------
Change from B Shares Transactions.. 67 306 123
-------- -------- -------- ------- ------- -------
Change in Share Transactions............ 7,967 2,254 1,017 325 790 (118)
======== ======== ======== ======= ======= =======
<Caption>
Life Vision
Conservative Fund
----------------------------------
06/01/04- 06/01/03- 03/11/03*-
03/31/05 05/31/04 05/31/03
--------- --------- ----------
Capital Transactions
T Shares(1)
Proceeds from Shares Issued............ $ 555 $ 30 $ --
Dividends Reinvested................... 6 -- --
Cost of Shares Redeemed................ (176) -- --
------ ------ ----
Change in Net Assets from T Shares
Transactions..................... $ 385 $ 30 $ --
------ ------ ----
A Shares(2)
Proceeds from Shares Issued............ $ 302 $ 485 $ --
Dividends Reinvested................... 7 2 --
Cost of Shares Redeemed................ (185) (10) --
------ ------ ----
Change in Net Assets from A Shares
Transactions..................... $ 124 $ 477 $ --
------ ------ ----
L Shares(3)
Proceeds from Shares Issued............
Dividends Reinvested...................
Cost of Shares Redeemed................
------ ------ ----
Change in Net Assets from L Shares
Transactions.....................
------ ------ ----
B Shares(4)
Proceeds from Shares Issued............ $ 611 $4,680 $811
Dividends Reinvested................... 106 40 --
Cost of Shares Redeemed................ (204) (627) (30)
------ ------ ----
Change in Net Assets from B Shares
Transactions..................... $ 513 $4,093 $781
------ ------ ----
Total Change from Capital
Transactions........................... $1,022 $4,600 $781
====== ====== ====
Share Transactions:
T Shares(1)
Issued................................. 49 3 --
Reinvested............................. 1 -- --
Redeemed............................... (16) -- --
------ ------ ----
Change in T Shares Transactions.... 34 3 --
------ ------ ----
A Shares(2)
Issued................................. 27 45 --
Reinvested............................. 1 -- --
Redeemed............................... (17) (1) --
------ ------ ----
Change in A Shares Transactions.... 11 44 --
------ ------ ----
L Shares(3)
Issued.................................
Reinvested.............................
Redeemed...............................
------ ------ ----
Change in L Shares Transactions....
------ ------ ----
B Shares(4)
Issued................................. 56 438 80
Reinvested............................. 10 4 --
Redeemed............................... (19) (58) (3)
------ ------ ----
Change from B Shares Transactions.. 47 384 77
------ ------ ----
Change in Share Transactions............ 92 431 77
====== ====== ====
</Table>
127
<Table>
<Caption>
Life Vision Life Vision Mid-Cap
Growth and Income Fund Moderate Growth Fund Equity Fund
- --------------------------------- --------------------------------- ---------------------------------
06/01/04- 06/01/03- 06/01/02- 06/01/04- 06/01/03- 06/01/02- 06/01/04- 06/01/03- 06/01/02-
03/31/05 05/31/04 05/31/03 03/31/05 05/31/04 05/31/03 03/31/05 05/31/04 05/31/03
- --------- --------- --------- --------- --------- --------- --------- --------- ---------
$ 17,841 $ 22,469 $ 19,612 $ 29,536 $ 45,870 $ 34,474 $ 52,779 $ 82,329 $ 126,939
1,371 971 927 3,448 1,730 1,615 411 360 --
(11,550) (17,771) (32,451) (27,216) (31,191) (28,076) (44,085) (48,540) (159,005)
- -------- -------- -------- -------- -------- -------- -------- -------- ---------
$ 7,662 $ 5,669 $(11,912) $ 5,768 $ 16,409 $ 8,013 $ 9,105 $ 34,149 $ (31,983)
- -------- -------- -------- -------- -------- -------- -------- -------- ---------
$ 2,267 $ 1,432 $ -- $ 4,620 $ 4,397 $ -- $ 2,497 $ 6,855 $ 4,798
37 5 -- 124 18 -- 22 39 --
(316) (24) -- (247) (898) -- (7,520) (4,089) (2,409)
- -------- -------- -------- -------- -------- -------- -------- -------- ---------
$ 1,988 $ 1,413 $ -- $ 4,497 $ 3,517 $ -- $ (5,001) $ 2,805 $ 2,389
- -------- -------- -------- -------- -------- -------- -------- -------- ---------
$ 613 $ 6,138 $ 3,460
-- 11 --
(4,307) (4,521) (3,677)
- -------- -------- -------- -------- -------- -------- -------- -------- ---------
$ (3,694) $ 1,628 $ (217)
- -------- -------- -------- -------- -------- -------- -------- -------- ---------
$ 4,275 $ 10,738 $ 1,896 $ 1,819 $ 10,808 $ 2,605
134 54 -- 265 87 1
(1,735) (567) (2) (1,124) (1,204) (59)
- -------- -------- -------- -------- -------- -------- -------- -------- ---------
$ 2,674 $ 10,225 $ 1,894 $ 960 $ 9,691 $ 2,547
- -------- -------- -------- -------- -------- -------- -------- -------- ---------
$ 12,324 $ 17,307 $(10,018) $ 11,225 $ 29,617 $ 10,560 $ 410 $ 38,582 $ (29,811)
======== ======== ======== ======== ======== ======== ======== ======== =========
1,614 2,228 2,189 2,836 4,736 4,043 4,657 8,504 15,332
122 95 106 330 179 189 37 37 --
(1,041) (1,716) (3,678) (2,620) (3,218) (3,260) (4,027) (4,889) (19,371)
- -------- -------- -------- -------- -------- -------- -------- -------- ---------
695 607 (1,383) 546 1,697 972 667 3,652 (4,039)
- -------- -------- -------- -------- -------- -------- -------- -------- ---------
206 135 -- 439 440 -- 243 721 616
3 -- -- 12 2 -- 2 4 --
(28) (2) -- (24) (90) -- (714) (440) (312)
- -------- -------- -------- -------- -------- -------- -------- -------- ---------
181 133 -- 427 352 -- (469) 285 304
- -------- -------- -------- -------- -------- -------- -------- -------- ---------
62 704 468
-- 1 --
(436) (502) (505)
- -------- -------- -------- -------- -------- -------- -------- -------- ---------
(374) 203 (37)
- -------- -------- -------- -------- -------- -------- -------- -------- ---------
390 1,049 216 179 1,135 306
12 5 -- 25 9 --
(157) (54) -- (109) (123) (7)
- -------- -------- -------- -------- -------- -------- -------- -------- ---------
245 1,000 216 95 1,021 299
- -------- -------- -------- -------- -------- -------- -------- -------- ---------
1,121 1,740 (1,167) 1,068 3,070 1,271 (176) 4,140 (3,772)
======== ======== ======== ======== ======== ======== ======== ======== =========
</Table>
128
NOTES TO FINANCIAL STATEMENTS (continued)
STI CLASSIC EQUITY FUNDS March 31, 2005
<Table>
<Caption>
Mid-Cap Value Small Cap Growth
Equity Fund Stock Fund
--------------------------------- ---------------------------------
06/01/04- 06/01/03- 06/01/02- 06/01/04- 06/01/03- 06/01/02-
03/31/05 05/31/04 05/31/03 03/31/05 05/31/04 05/31/03
--------- --------- --------- --------- --------- ---------
Capital Transactions
T Shares(1)
Proceeds from Shares Issued............. $ 59,139 $ 49,725 $ 42,357 $280,968 $208,034 $138,559
Dividends Reinvested.................... 692 224 1,307 70,587 -- 6,573
Cost of Shares Redeemed................. (18,975) (32,636) (82,431) (185,101) (187,311) (104,086)
-------- -------- -------- --------- --------- ---------
Change in Net Assets from T Shares
Transactions...................... $ 40,856 $ 17,313 $(38,767) $166,454 $ 20,723 $ 41,046
-------- -------- -------- --------- --------- ---------
A Shares(2)
Proceeds from Shares Issued............. $ 1,766 $ 781 $ -- $ 16,113 $ 18,285 $ 7,284
Dividends Reinvested.................... 7 -- -- 5,004 -- 296
Cost of Shares Redeemed................. (794) (195) -- (21,911) (7,136) (7,682)
-------- -------- -------- --------- --------- ---------
Change in Net Assets from A Shares
Transactions...................... $ 979 $ 586 $ -- $ (794) $ 11,149 $ (102)
-------- -------- -------- --------- --------- ---------
L Shares(3)
Proceeds from Shares Issued............. $ 930 $ 3,478 $ 3,348 $ 2,010 $ 14,012 $ 6,509
Dividends Reinvested.................... 30 1 98 4,297 -- 414
Cost of Shares Redeemed................. (2,839) (3,028) (1,971) (10,356) (8,464) (6,817)
-------- -------- -------- --------- --------- ---------
Change in Net Assets from L Shares
Transactions...................... $ (1,879) $ 451 $ 1,475 $ (4,049) $ 5,548 $ 106
-------- -------- -------- --------- --------- ---------
Total Change from Capital Transactions... $ 39,956 $ 18,350 $(37,292) $161,611 $ 37,420 $ 41,050
======== ======== ======== ========= ========= =========
Share Transactions:
T Shares(1)
Issued.................................. 5,209 5,128 5,129 13,718 11,405 10,120
Reinvested.............................. 59 23 162 3,464 -- 487
Redeemed................................ (1,664) (3,302) (9,676) (9,120) (9,774) (7,574)
-------- -------- -------- --------- --------- ---------
Change in T Shares Transactions..... 3,604 1,849 (4,385) 8,062 1,631 3,033
-------- -------- -------- --------- --------- ---------
A Shares(2)
Issued.................................. 153 75 -- 795 960 541
Reinvested.............................. 1 -- -- 251 -- 22
Redeemed................................ (69) (19) -- (1,092) (381) (563)
-------- -------- -------- --------- --------- ---------
Change in A Shares Transactions..... 85 56 -- (46) 579 --
-------- -------- -------- --------- --------- ---------
L Shares(3)
Issued.................................. 82 364 400 105 812 494
Reinvested.............................. 3 -- 12 227 -- 32
Redeemed................................ (244) (310) (243) (540) (467) (527)
-------- -------- -------- --------- --------- ---------
Change in L Shares Transactions..... (159) 54 169 (208) 345 (1)
-------- -------- -------- --------- --------- ---------
Change in Share Transactions............. 3,530 1,959 (4,216) 7,808 2,555 3,032
======== ======== ======== ========= ========= =========
<Caption>
Small Cap Value
Equity Fund
---------------------------------
06/01/04- 06/01/03- 06/01/02-
03/31/05 05/31/04 05/31/03
--------- --------- ---------
Capital Transactions
T Shares(1)
Proceeds from Shares Issued............. $100,626 $194,843 $ 119,973
Dividends Reinvested.................... 36,386 1,303 1,424
Cost of Shares Redeemed................. (149,795) (200,738) (176,975)
--------- --------- ---------
Change in Net Assets from T Shares
Transactions...................... $(12,783) $ (4,592) $ (55,578)
--------- --------- ---------
A Shares(2)
Proceeds from Shares Issued............. $ 4,273 $ 5,183 $ --
Dividends Reinvested.................... 241 -- --
Cost of Shares Redeemed................. (4,286) (1,130) --
--------- --------- ---------
Change in Net Assets from A Shares
Transactions...................... $ 228 $ 4,053 $ --
--------- --------- ---------
L Shares(3)
Proceeds from Shares Issued............. $ 864 $ 11,644 $ 13,859
Dividends Reinvested.................... 3,288 5 --
Cost of Shares Redeemed................. (10,459) (11,209) (10,389)
--------- --------- ---------
Change in Net Assets from L Shares
Transactions...................... $ (6,307) $ 440 $ 3,470
--------- --------- ---------
Total Change from Capital Transactions... $(18,862) $ (99) $ (52,108)
========= ========= =========
Share Transactions:
T Shares(1)
Issued.................................. 5,177 12,101 9,369
Reinvested.............................. 1,847 87 110
Redeemed................................ (7,794) (12,580) (13,947)
--------- --------- ---------
Change in T Shares Transactions..... (770) (392) (4,468)
--------- --------- ---------
A Shares(2)
Issued.................................. 219 290 --
Reinvested.............................. 12 -- --
Redeemed................................ (222) (65) --
--------- --------- ---------
Change in A Shares Transactions..... 9 225 --
--------- --------- ---------
L Shares(3)
Issued.................................. 45 759 1,087
Reinvested.............................. 170 -- --
Redeemed................................ (549) (695) (839)
--------- --------- ---------
Change in L Shares Transactions..... (334) 64 248
--------- --------- ---------
Change in Share Transactions............. (1,095) (103) (4,220)
========= ========= =========
</Table>
* Commencement of operations.
(1) T shares were offered beginning on November 6, 2003 for the Life Vision
Conservative Fund.
(2) A shares were offered beginning on October 16, 2003, November 11, 2003,
November 5, 2003, October 10, 2003, October 27, 2003, October 9, 2003,
October 8, 2003 and October 14, 2003 for the Life Vision Aggressive Growth
Fund, the Life Vision Conservative Fund, the Life Vision Growth and Income
Fund, the Life Vision Moderate Growth Fund, the Mid-Cap Value Equity Fund,
the Small Cap Value Equity Fund, the Strategic Quantitative Equity Fund and
the Tax Sensitive Growth Stock Fund, respectively.
(3) L shares were offered beginning on February 27, 2004 and October 13, 2003
for the Emerging Growth Stock Fund and the Strategic Quantitative Equity
Fund, respectively.
(4) B shares were offered beginning on March 11, 2003 for the Life Vision
Aggressive Growth Fund, the Life Vision Conservative Fund, the Life Vision
Growth and Income Fund and the Life Vision Moderate Growth Fund,
respectively. Amounts designated as "--" are either $0 or have been rounded
to $0.
129
<Table>
<Caption>
Strategic Quantitative Tax Sensitive Growth Value Income
Equity Fund Stock Fund Stock Fund
- ---------------------- --------------------------------- ---------------------------------
06/01/04- 08/07/03*- 06/01/04- 06/01/03- 06/01/02- 06/01/04- 06/01/03- 06/01/02-
03/31/05 05/31/04 03/31/05 05/31/04 05/31/03 03/31/05 05/31/04 05/31/03
- --------- ---------- --------- --------- --------- --------- --------- ---------
$ 30,156 $63,691 $ 3,796 $ 10,614 $ 79,785 $169,872 $117,907 $ 189,197
2,338 655 26 -- -- 8,648 7,527 7,198
(13,347) (3,492) (53,299) (84,727) (97,881) (174,545) (204,589) (126,339)
- -------- ------- -------- --------- -------- --------- --------- ---------
$ 19,147 $60,854 $(49,477) $(74,113) $(18,096) $ 3,975 $(79,155) $ 70,056
- -------- ------- -------- --------- -------- --------- --------- ---------
$ 226 $ 156 $ 990 $ 664 $ -- $ 6,041 $ 8,238 $ 10,612
12 1 1 -- -- 834 704 705
(9) (3) (707) (318) -- (11,748) (12,649) (12,542)
- -------- ------- -------- --------- -------- --------- --------- ---------
$ 229 $ 154 $ 284 $ 346 $ -- $ (4,873) $ (3,707) $ (1,225)
- -------- ------- -------- --------- -------- --------- --------- ---------
$ 139 $ 1,627 $ 694 $ 4,890 $ 7,888 $ 2,931 $ 11,995 $ 8,232
79 19 -- -- -- 267 201 181
(470) (107) (27,952) (33,456) (44,717) (12,753) (12,967) (11,412)
- -------- ------- -------- --------- -------- --------- --------- ---------
$ (252) $ 1,539 $(27,258) $(28,566) $(36,829) $ (9,555) $ (771) $ (2,999)
- -------- ------- -------- --------- -------- --------- --------- ---------
$ 19,124 $62,547 $(76,451) $(102,333) $(54,925) $(10,453) $(83,633) $ 65,832
======== ======= ======== ========= ======== ========= ========= =========
2,392 5,767 161 474 3,969 14,111 11,026 20,952
182 58 1 -- -- 712 717 785
(1,068) (296) (2,270) (3,816) (4,945) (14,301) (19,413) (13,723)
- -------- ------- -------- --------- -------- --------- --------- ---------
1,506 5,529 (2,108) (3,342) (976) 522 (7,670) 8,014
- -------- ------- -------- --------- -------- --------- --------- ---------
18 13 42 29 -- 509 785 1,168
1 -- -- -- -- 69 67 77
(1) -- (30) (13) -- (977) (1,175) (1,386)
- -------- ------- -------- --------- -------- --------- --------- ---------
18 13 12 16 -- (399) (323) (141)
- -------- ------- -------- --------- -------- --------- --------- ---------
12 138 31 235 417 246 1,157 909
6 2 -- -- -- 22 19 20
(37) (9) (1,253) (1,562) (2,353) (1,070) (1,205) (1,272)
- -------- ------- -------- --------- -------- --------- --------- ---------
(19) 131 (1,222) (1,327) (1,936) (802) (29) (343)
- -------- ------- -------- --------- -------- --------- --------- ---------
1,505 5,673 (3,318) (4,653) (2,912) (679) (8,022) 7,530
======== ======= ======== ========= ======== ========= ========= =========
</Table>
130
NOTES TO FINANCIAL STATEMENTS (continued)
STI CLASSIC EQUITY FUNDS March 31, 2005
7. Federal Tax Policies and Information
It is the policy of each Fund to continue to qualify as a regulated investment
company by complying with the provisions available to certain investment
companies as defined in applicable sections of the Internal Revenue Code, and to
make distributions from net investment income and from net realized gains
sufficient to relieve it from all, or substantially all, federal income taxes.
Withholding taxes on foreign dividends have been paid or provided for in
accordance with applicable country's tax rules and rates.
At March 31, 2005, the total cost of securities and the net realized gains or
losses on securities sold for Federal income tax purposes were different from
amounts reported for financial reporting purposes generally due to wash sales
which cannot be used for Federal income tax purposes in the current year and
have been deferred for use in future years. The Federal tax cost and aggregate
gross unrealized appreciation and depreciation for securities held by the Funds
at March 31, 2005, were as follows (in thousands):
<Table>
<Caption>
Aggregate Aggregate
Gross Gross Net Unrealized
Federal Unrealized Unrealized Appreciation
Tax Cost Appreciation Depreciation (Depreciation)
---------- ------------ ------------ --------------
Aggressive Growth Stock Fund................................ $ 62,588 $ 6,429 $ (3,628) $ 2,801
Balanced Fund............................................... 308,451 16,175 (5,037) 11,138
Capital Appreciation Fund................................... 1,736,185 165,176 (51,408) 113,768
Emerging Growth Stock Fund.................................. 19,012 2,985 (1,278) 1,707
Growth and Income Fund...................................... 1,057,555 241,963 (12,622) 229,094
International Equity Fund................................... 414,907 95,056 (5,148) 89,908
International Equity Index Fund............................. 478,307 115,569 (29,761) 85,808
Life Vision Aggressive Growth Fund.......................... 45,439 5,882 (315) 5,388
Life Vision Conservative Fund............................... 6,409 250 (44) 206
Life Vision Growth and Income Fund.......................... 96,822 11,500 (399) 10,879
Life Vision Moderate Growth Fund............................ 143,653 13,125 (869) 11,645
Mid-Cap Equity Fund......................................... 259,413 43,726 (5,380) 38,194
Mid-Cap Value Equity Fund................................... 227,395 15,420 (4,123) 11,225
Small Cap Growth Stock Fund................................. 1,006,786 203,372 (54,751) 148,613
Small Cap Value Equity Fund................................. 639,506 239,037 (15,137) 223,900
Strategic Quantitative Equity Fund.......................... 91,945 5,950 (1,730) 4,220
Tax Sensitive Growth Stock Fund............................. 143,735 37,623 (2,666) 33,983
Value Income Stock Fund..................................... 936,309 101,505 (14,744) 86,713
</Table>
The tax character of distributions paid to shareholders during the fiscal year
ended March 31, 2005 was as follows (in thousands):
<Table>
<Caption>
Distributions paid from
--------------------------
Net Net Long Total
Investment Term Capital Distributions
Fund Income Gains Paid*
- ---- ---------- ------------- -------------
Aggressive Growth Stock Fund................................ $ -- $ -- $ --
Balanced Fund............................................... 4,430 2,651 7,081
Capital Appreciation Fund................................... 2,919 26,372 29,291
Emerging Growth Stock Fund.................................. -- -- --
Growth and Income Fund...................................... 14,777 18,982 33,759
International Equity Fund................................... 4,175 -- 4,175
International Equity Index Fund............................. 8,680 -- 8,680
Life Vision Aggressive Growth Fund.......................... 492 -- 492
Life Vision Conservative Fund............................... 142 1 143
Life Vision Growth and Income Fund.......................... 1,550 -- 1,550
Life Vision Moderate Growth Fund............................ 3,081 780 3,861
Mid-Cap Equity Fund......................................... 987 -- 987
Mid-Cap Value Equity Fund................................... 1,946 -- 1,946
Small Cap Growth Stock Fund................................. 33,850 71,394 105,244
Small Cap Value Equity Fund................................. 9,030 50,922 59,952
Strategic Quantitative Equity Fund.......................... 3,904 932 4,836
Tax Sensitive Growth Stock Fund............................. 178 -- 178
Value Income Stock Fund..................................... 12,627 -- 12,627
</Table>
* Total distributions paid differ from the Statement of Changes in Net Assets
because for tax purposes dividends are recognized when actually paid.
131
The tax character of distributions paid to shareholders during the fiscal year
ended May 31, 2004 was as follows (in thousands):
<Table>
<Caption>
Distributions paid from
-------------------------
Net Net Long Total Total
Investment Term Capital Taxable Return of Distributions
Fund Income Gains Distributions Capital Paid*
- ---- ---------- ------------ ------------- --------- -------------
Aggressive Growth Stock Fund.............................. $ -- $-- $ -- $ -- $ --
Balanced Fund............................................. 4,343 -- 4,343 -- 4,343
Capital Appreciation Fund................................. -- -- -- -- --
Emerging Growth Stock Fund................................ -- -- -- -- --
Growth and Income Fund.................................... 7,461 -- 7,461 -- 7,461
International Equity Fund................................. 3,509 -- 3,509 -- 3,509
International Equity Index Fund........................... 4,082 -- 4,082 -- 4,082
Life Vision Aggressive Growth Fund........................ 124 -- 124 12 136
Life Vision Conservative Fund............................. 50 -- 50 -- 50
Life Vision Growth and Income Fund........................ 1,035 -- 1,035 -- 1,035
Life Vision Moderate Growth Fund.......................... 1,846 -- 1,846 -- 1,846
Mid-Cap Equity Fund....................................... 922 -- 922 -- 922
Mid-Cap Value Equity Fund................................. 654 -- 654 -- 654
Small Cap Growth Stock Fund............................... -- -- -- -- --
Small Cap Value Equity Fund............................... 2,438 -- 2,438 -- 2,438
Strategic Quantitative Equity Fund........................ 994 -- 994 -- 994
Value Income Stock Fund................................... 10,722 -- 10,722 -- 10,722
</Table>
* Total distributions paid differ from the Statement of Changes in Net Assets
because for tax purposes dividends are recognized when actually paid.
The tax character of distributions paid to shareholders during the fiscal year
ended May 31, 2003 was as follows (in thousands):
<Table>
<Caption>
Distributions paid from
-------------------------
Net Net Long Total Total
Investment Term Capital Taxable Return of Distributions
Fund Income Gains Distributions Capital Paid*
- ---- ---------- ------------ ------------- --------- -------------
Balanced Fund............................................. $ 5,021 $ -- $ 5,021 $-- $ 5,021
Capital Appreciation Fund................................. -- -- -- -- --
Growth and Income Fund.................................... 6,686 -- 6,686 -- 6,686
International Equity Fund................................. 1,452 -- 1,452 -- 1,452
International Equity Index Fund........................... 1,082 -- 1,082 -- 1,082
Life Vision Aggressive Growth Fund........................ 89 -- 89 3 92
Life Vision Conservative Fund............................. -- -- -- -- --
Life Vision Growth and Income Fund........................ 931 -- 931 -- 931
Life Vision Moderate Growth Fund.......................... 1,622 -- 1,622 -- 1,622
Mid-Cap Equity Fund....................................... -- -- -- -- --
Mid-Cap Value Equity Fund................................. 2,801 -- 2,801 -- 2,801
Small Cap Growth Stock Fund............................... -- 9,104 9,104 -- 9,104
Small Cap Value Equity Fund............................... 2,605 -- 2,605 -- 2,605
Value Income Stock Fund................................... 10,325 -- 10,325 -- 10,325
</Table>
* Total distributions paid differ from the Statement of Changes in Net Assets
because for tax purposes dividends are recognized when actually paid.
Amounts designated as "--" are either $0 or have been rounded to $0.
132
NOTES TO FINANCIAL STATEMENTS (continued)
STI CLASSIC EQUITY FUNDS March 31, 2005
As of March 31, 2005 the components of accumulated earnings (deficit) on a tax
basis were as follows (in thousands):
<Table>
<Caption>
Total
Undistributed Undistributed Accumulated Unrealized Accumulated
Ordinary Long Term Accumulated Capital and Appreciation Earnings
Fund Income Capital Gains Earnings Other Losses (Depreciation)* (Deficit)
- ---- ------------- ------------- ----------- ------------ ----------------- -----------
Aggressive Growth Stock Fund....... $ 5 $ -- $ 5 $ (4,802) $ 2,801 $ (1,996)
Balanced Fund...................... 194 8,111 8,305 -- 11,138 19,443
Capital Appreciation Fund.......... -- 33,118 33,118 -- 113,768 146,886
Emerging Growth Stock Fund......... -- -- -- (1,909) 1,707 (202)
Growth and Income Fund............. 4,546 13,024 17,570 -- 229,094 246,664
International Equity Fund.......... 2,546 -- 2,546 (74,027) 89,894 18,413
International Equity Index Fund.... 1,450 -- 1,450 (58,987) 85,795 28,258
Life Vision Aggressive Growth
Fund............................. -- -- -- (52) 5,388 5,336
Life Vision Conservative Fund...... 57 -- 57 (12) 206 251
Life Vision Growth and Income
Fund............................. 9 -- 9 (1,183) 10,880 9,706
Life Vision Moderate Growth Fund... 1,189 474 1,663 -- 11,645 13,308
Mid-Cap Equity Fund................ 51 -- 51 (11,268) 38,194 26,977
Mid-Cap Value Equity Fund.......... 13 10,679 10,692 -- 11,226 21,918
Small Cap Growth Stock Fund........ 12,698 43,343 56,041 -- 148,613 204,654
Small Cap Value Equity Fund........ 3,574 48,896 52,470 -- 223,990 276,370
Strategic Quantitative Equity
Fund............................. 8,608 589 9,197 -- 4,220 13,417
Tax Sensitive Growth Stock Fund.... 528 -- 528 (211,214) 33,983 (176,703)
Value Income Stock Fund............ 3 -- 3 (86,457) 86,715 261
</Table>
* The difference between book-basis and tax-basis unrealized appreciation
(depreciation) is attributable primarily to: tax deferral on wash sales, the
realization for tax purposes of unrealized gains/losses on certain derivative
instruments, the realization for tax purposes of unrealized gains/losses on
investments in passive foreign investment companies, return of capital from
real estate investment trusts, and the difference between book and tax
amortization methods for premium and market discount.
As of the latest tax year end of March 31, 2005, the following Funds had net
capital loss carryovers to offset future net capital gains, if any, to the
extent provided by the Treasury regulations. To the extent that these carryovers
are used to offset future gains, it is probable that the gains so offset will
not be distributed to shareholders:
<Table>
<Caption>
2009 2010 2011 2012 2013
------------ ----------- ----------- ----------- ----------
Aggressive Growth Stock Fund................................ $ -- $ -- $ -- $ -- $1,399,243
Emerging Growth Stock Fund.................................. -- -- -- -- 1,159,257
International Equity Fund................................... -- 25,360,036 31,153,227 17,050,472 --
International Equity Index Fund............................. 6,233,544 23,826,667 16,546,202 9,206,816 3,126,633
Life Vision Aggressive Growth Fund.......................... -- -- -- 52,107 --
Life Vision Growth and Income Fund.......................... -- -- 140,164 1,043,152 --
Mid-Cap Equity Fund......................................... -- -- 11,268,526 -- --
Tax Sensitive Growth Stock Fund............................. 149,034,772 52,652,948 9,526,873 -- --
Value Income Stock Fund..................................... 57,515,859 -- 28,941,704 -- --
</Table>
Amounts designated as "--" are either $0 or have been rounded to $0.
As of March 31, 2005, the Aggressive Growth Stock Fund has additional capital
loss carryforwards, subject to any applicable limitations on availability, to
offset future gains, if any, as the successor of a merger with the Information
and Technology Fund. This amount is $3,369,014 expiring in 2010.
During the period ended March 31, 2005, the Growth and Income Fund,
International Equity Fund, Life Vision Aggressive Growth Fund, Life Vision
Growth and Income Fund, Life Vision Moderate Growth Fund, Mid-Cap Equity Fund,
Mid-Cap Value Equity Fund, Small Cap Growth Stock Fund, Tax Sensitive Growth
Stock Fund and Value Income Stock Fund utilized capital loss carry forwards of
$29,765, $11,530, $918, $2,703, $2,245, $17,449, $17,069, $1,996, $11,526, and
$105,233, respectively (in thousands).
133
Net capital losses incurred after October 31, and within the taxable year are
deemed to arise on the first business day of the Funds' next taxable year. The
Funds have incurred and will elect to defer capital losses as follows:
<Table>
<Caption>
Fund Capital Losses
- ---- --------------
Aggressive Growth Stock Fund................................ $ 33,268
Emerging Growth Stock Fund.................................. 749,380
International Equity Fund................................... 463,201
International Equity Index Fund............................. 47,114
Life Vision Conservative Fund............................... 11,861
</Table>
8. Concentrations/Risks
The International Equity and International Equity Index Funds invest in
securities of foreign issuers in various countries. These investments may
involve certain considerations and risks not typically associated with
investments in the United States as a result of, among other factors, the
possibility of future political and economic developments and the level of
governmental supervision and regulation of securities markets in the respective
countries.
9. Securities Lending
The Balanced Fund, Capital Appreciation Fund, Growth and Income Fund,
International Equity Fund, International Equity Index Fund, Mid-Cap Equity Fund,
Mid-Cap Value Equity Fund, Small Cap Growth Stock Fund, Small Cap Value Equity
Fund, Tax Sensitive Growth Stock Fund and Value Income Stock Fund may lend
portfolio securities to brokers, dealers and other financial organizations that
meet capital and other credit requirements or other criteria established by the
Trust's Board. These loans may not exceed either (i) 50% of the sum of the
market value of all securities of the Fund and the market value of the loan
collateral or (ii) 33.33% of the market value of all securities of the Fund. No
Fund will lend portfolio securities to its investment adviser, sub-adviser, or
their affiliates unless it has applied for and received specific authority to do
so from the Securities and Exchange Commission. Loans of portfolio securities
will be fully collateralized by cash. The value of the collateral is at least
100% of the market value of the securities loaned. However, due to market
fluctuations during the day, the value of securities loaned on a particular day
may, during the course of the day, exceed the value of collateral. On each
business day, the amount of collateral is adjusted based on the prior day's
market fluctuations and the current day's lending activity. Income from lending
activity is determined by the amount of interest earned on collateral, less any
amounts payable to the borrowers of the securities and the lending agent.
Lending securities involves certain risks, including the risk that the Fund may
be delayed or prevented from recovering the collateral if the borrower fails to
return the securities.
Cash collateral received in connection with securities lending is invested in
the CSFB Enhanced Liquidity Portfolio. This investment consists of money market
instruments including money market mutual funds registered under the Investment
Company Act of 1940, commercial paper, repurchase agreements, U.S. Treasury
Bills and U.S. Agency Obligations. At March 31, 2005, the Portfolio was invested
in commercial paper, repurchase agreements, asset backed securities and U.S.
Agency Obligations (with interest rates ranging from 2.72% to 3.13% and maturity
dates ranging from 04/01/05 to 03/04/08).
The Funds paid fees for securities lending for the period ended March 31, 2005,
which have been netted against the Security Lending Income on the Statements of
Operations. These fees are presented below (in thousands):
<Table>
<Caption>
Fees
----
Balanced Fund $2
Capital Appreciation Fund 2
Growth and Income Fund 1
International Equity Fund 7
International Equity Index Fund 4
Mid-Cap Equity Fund 4
Mid-Cap Value Equity Fund --
Small Cap Growth Stock Fund 6
Small Cap Value Equity Fund 1
Tax Sensitive Growth Stock Fund --
Value Income Stock Fund 1
</Table>
Amounts designated as "--" have been rounded to $0.
134
NOTES TO FINANCIAL STATEMENTS (continued)
STI CLASSIC EQUITY FUNDS March 31, 2005
10. Subsequent Event
On April 1, 2005, the Life Vision Funds began offering L Shares in each Fund.
This share offering was approved by the Board on February 15, 2005.
11. Other Federal Tax Information (Unaudited)
For corporate shareholders, the following percentage of the total ordinary
income distributions paid during the fiscal period ended March 31, 2005, qualify
for the corporate dividends received deduction for the following Funds:
<Table>
<Caption>
Dividends Received
Deduction
------------------
Balanced Fund 46.83%
Capital Appreciation Fund 100.00%
Growth and Income Fund 96.16%
Mid-Cap Equity Fund 100.00%
Mid-Cap Value Equity Fund 100.00%
Small Cap Value Equity Fund 63.38%
Strategic Quantitative Equity Fund 5.68%
Tax Sensitive Growth Stock Fund 100.00%
Value Income Stock Fund 100.00%
</Table>
In addition, the Funds may elect to pass through foreign taxes paid by the Funds
to its shareholders under Code 853 of the Internal Revenue Code. For the fiscal
period ended March 31, 2005, the International Equity Index Fund elected to pass
through foreign taxes of $693,749.
For the period ended March 31, 2005, the following Funds paid qualified dividend
income:
<Table>
<Caption>
Qualified Dividend
Fund Income
- ---- ------------------
Balanced Fund $ 1,892
Capital Appreciation Fund 20,380
Emerging Growth Stock Fund 17
Growth and Income Fund 17,011
International Equity Fund 6,300
International Equity Index Fund 4,634
Life Vision Aggressive Growth Fund 382
Life Vision Conservative Fund 14
Life Vision Growth and Income Fund 655
Life Vision Moderate Growth Fund 689
Mid-Cap Equity Fund 2,930
Mid-Cap Value Equity Fund 2,553
Small Cap Growth Stock Fund 3,927
Small Cap Value Equity Fund 6,726
Strategic Quantitative Equity Fund 461
Tax Sensitive Growth Stock Fund 1,433
Value Income Stock Fund 16,431
</Table>
135
REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM
- --------------------------------------------------------------------------------
To the Board of Trustees and Shareholders of
STI Classic Funds:
In our opinion, the accompanying statements of assets and liabilities, including
the schedules of portfolio investments, and the related statements of operations
and of changes in net assets and the financial highlights present fairly, in all
material respects, the financial position of Aggressive Growth Stock Fund,
Balanced Fund, Capital Appreciation Fund, Emerging Growth Stock Fund, Growth and
Income Fund, International Equity Fund, International Equity Index Fund, Life
Vision Aggressive Growth Fund, Life Vision Conservative Fund, Life Vision Growth
and Income Fund, Life Vision Moderate Growth Fund, Mid-Cap Equity Fund, Mid-Cap
Value Equity Fund, Small Cap Growth Stock Fund, Small Cap Value Equity Fund,
Strategic Quantitative Equity Fund, Tax Sensitive Growth Stock Fund and Value
Income Stock Fund (eighteen of the forty-nine funds constituting STI Classic
Funds, hereafter referred to as the "Funds") at March 31, 2005, the results of
each of their operations for the period June 1, 2004 to March 31, 2005 and for
the year (or period) ended May 31, 2004, the changes in each of their net assets
for the period June 1, 2004 to March 31, 2005 and for each of the two years (or
periods) in the period ended May 31, 2004 and the financial highlights for the
period June 1, 2004 to March 31, 2005 and for each of the three years (or
periods) in the period ended May 31, 2004, in conformity with accounting
principles generally accepted in the United States of America. These financial
statements and financial highlights (hereafter referred to as "financial
statements") are the responsibility of the Funds' management; our responsibility
is to express an opinion on these financial statements based on our audits. We
conducted our audits of these financial statements in accordance with the
standards of the Public Company Accounting Oversight Board (United States).
Those standards require that we plan and perform the audit to obtain reasonable
assurance about whether the financial statements are free of material
misstatement. An audit includes examining, on a test basis, evidence supporting
the amounts and disclosures in the financial statements, assessing the
accounting principles used and significant estimates made by management, and
evaluating the overall financial statement presentation. We believe that our
audits, which included confirmation of securities at March 31, 2005 by
correspondence with the custodians and brokers, provide a reasonable basis for
our opinion. The financial highlights for each of the two years (or periods)
ended May 31, 2001 were audited by other independent accountants who have ceased
operations. Those independent accountants expressed an unqualified opinion on
those financial statements in their report dated July 18, 2001.
PricewaterhouseCoopers LLP
Philadelphia, Pennsylvania
May 25, 2005
136
TRUSTEES AND OFFICERS OF THE STI CLASSIC FUNDS (UNAUDITED)
- --------------------------------------------------------------------------------
Information pertaining to the trustees of the Trust is set forth below. Trustees
who are not deemed to be "interested persons" of the Trust as defined in the
1940 Act are referred to as "Independent Board Member." Trustees who are deemed
to be "interested persons" of the Trust are referred to as "Interested Board
Member." Messrs. Courts and Ridley are Trustees who may be deemed to be
"interested persons" of the Trust.
- --------------------------------------------------------------------------------
<Table>
<Caption>
TERM OF NUMBER OF
POSITION(S) OFFICE AND PRINCIPAL PORTFOLIOS
NAME, ADDRESS, AND HELD WITH LENGTH OF OCCUPATION(S) OVERSEEN FOR
DATE OF BIRTH THE GROUP TIME SERVED DURING THE PAST 5 YEARS THE TRUST
- ------------------------------------------------------------------------------------------------------
INTERESTED
BOARD MEMBERS*
Richard W. Courts, II Trustee Indefinite: Chairman, Atlantic Investment 49
3435 Stelzer Road since Company.
Columbus, OH 43219 November, 2001
01/18/36
- ------------------------------------------------------------------------------------------------------
Clarence H. Ridley Trustee Indefinite: Chairman, Haverty Furniture 49
3435 Stelzer Road since Companies, 2001 to present;
Columbus, OH 43219 November, 2001 Partner, King and Spaulding LLP
06/03/42 (law firm), 1977 to 2000.
- ------------------------------------------------------------------------------------------------------
INDEPENDENT
BOARD MEMBERS
Thomas Gallagher Trustee Indefinite: President and CEO, Genuine Parts 49
3435 Stelzer Road since May, Company.
Columbus, OH 43219 2000
11/25/47
- ------------------------------------------------------------------------------------------------------
F. Wendell Gooch Trustee Indefinite: Retired. 49
3435 Stelzer Road since May,
Columbus, OH 43219 1992
12/03/32
- ------------------------------------------------------------------------------------------------------
James O. Robbins Trustee Indefinite: President and Chief Executive 49
3435 Stelzer Road since May, Officer, Cox Communications, Inc.
Columbus, OH 43219 2000
07/04/42
- ------------------------------------------------------------------------------------------------------
Jonathan T. Walton Trustee Indefinite: Retired. 49
3435 Stelzer Road since
Columbus, OH 43219 February, 1998
03/28/30
- ------------------------------------------------------------------------------------------------------
Sidney E. Harris Trustee Indefinite: Professor (since 2004) and Dean 49
3435 Stelzer Road since (1997-2004) of J. Mack Robinson
Columbus, OH 43219 November, 2004 College of Business, Georgia
07/21/49 State University.
- ------------------------------------------------------------------------------------------------------
Warren Y. Jobe Trustee Indefinite: Retired. EVP, Georgia Power Co. 49
3435 Stelzer Road since and SVP, Southern Co.
Columbus, OH 43219 November, 2004 (1998-2001).
11/12/40
- ------------------------------------------------------------------------------------------------------
Charles D. Winslow Trustee Indefinite: Retired. Former Partner, 49
3435 Stelzer Road since Accenture.
Columbus, OH 43219 November, 2004
07/13/35
- ------------------------------------------------------------------------------------------------------
Connie D. McDaniel Trustee Indefinite: Vice President and Controller, 49
3435 Stelzer Road since May, The Coca-Cola Co.
Columbus, OH 43219 2005
04/10/58
- ------------------------------------------------------------------------------------------------------
<Caption>
OTHER
DIRECTORSHIPS
NAME, ADDRESS, AND HELD BY BOARD
DATE OF BIRTH MEMBER
- ------------------------------------------------------------------------------------------------------
INTERESTED
BOARD MEMBERS*
Richard W. Courts, II Director, Cousins
3435 Stelzer Road Properties, Inc.; Director,
Columbus, OH 43219 Genuine Parts Co.; Director,
01/18/36 Piedmont Medical Center;
Director, SunTrust Bank,
Atlanta; Chairman, Courts
Foundation; Chairman, J.
Bulow Campbell Foundation.
Trustee of STI Classic
Variable Trust.
- ------------------------------------------------------------------------------------------------------
Clarence H. Ridley Director, Crawford & Co.
3435 Stelzer Road Trustee of STI Classic
Columbus, OH 43219 Variable Trust.
06/03/42
- ------------------------------------------------------------------------------------------------------
INDEPENDENT
BOARD MEMBERS
Thomas Gallagher Director, NAPA; Director,
3435 Stelzer Road Genuine Parts Co.; Director,
Columbus, OH 43219 Stone Mountain Industrial
11/25/47 Park; Trustee, The Lovett
School; Director, Oxford
Industries. Trustee of STI
Classic Variable Trust.
- ------------------------------------------------------------------------------------------------------
F. Wendell Gooch Trustee of STI Classic
3435 Stelzer Road Variable Trust, and SEI
Columbus, OH 43219 Family of Funds.
12/03/32
- ------------------------------------------------------------------------------------------------------
James O. Robbins Director, National Cable and
3435 Stelzer Road Telecommunications
Columbus, OH 43219 Association; Director, Cable
07/04/42 Labs; Director, C-SPAN;
Director, Discovery Channel;
Trustee, St. Paul's Schools;
Director, Cox
Communications. Trustee of
STI Classic Variable Trust.
- ------------------------------------------------------------------------------------------------------
Jonathan T. Walton Director, Detroit Riverfront
3435 Stelzer Road Conservancy. Trustee of STI
Columbus, OH 43219 Classic Variable Trust.
03/28/30
- ------------------------------------------------------------------------------------------------------
Sidney E. Harris Director, ServiceMaster;
3435 Stelzer Road Director, Total System
Columbus, OH 43219 Services, Inc.; Director,
07/21/49 Transamerica Investors, Inc.
Trustee of STI Classic
Variable Trust.
- ------------------------------------------------------------------------------------------------------
Warren Y. Jobe Director, WellPoint, Inc.;
3435 Stelzer Road Director, UniSource Energy
Columbus, OH 43219 Corp.; Director, HomeBanc
11/12/40 Corp. Trustee of STI Classic
Variable Trust.
- ------------------------------------------------------------------------------------------------------
Charles D. Winslow Trustee of STI Classic
3435 Stelzer Road Variable Trust.
Columbus, OH 43219
07/13/35
- ------------------------------------------------------------------------------------------------------
Connie D. McDaniel Trustee of STI Classic
3435 Stelzer Road Variable Trust.
Columbus, OH 43219
04/10/58
- ------------------------------------------------------------------------------------------------------
</Table>
* Mr. Courts may be deemed an interested Trustee because of his directorships
with affiliates of the Adviser. Mr. Ridley may be deemed an interested Trustee
because of a material business relationship with the parent of the Adviser.
137
TRUSTEES AND OFFICERS OF THE STI CLASSIC FUNDS (UNAUDITED)
- --------------------------------------------------------------------------------
<Table>
<Caption>
TERM OF
OFFICE AND
POSITION(S) LENGTH OF
NAME, ADDRESS, AND HELD WITH TIME PRINCIPAL OCCUPATION(S)
DATE OF BIRTH THE GROUP SERVED DURING THE PAST 5 YEARS
- -----------------------------------------------------------------------------------------------------------------------
OFFICERS
R. Jeffrey Young President Since 2004 Senior Vice President, Relationship Management, BISYS Fund
3435 Stelzer Road Services since April 2002. Vice President, Client Services,
Columbus, OH 43219 BISYS Fund Services from May 1997 to April 2002.
08/22/64
- -----------------------------------------------------------------------------------------------------------------------
David L. Hughes Treasurer and Since 2005 Vice President, Financial Administration, BISYS Fund
3435 Stelzer Road CFO Services since February 2005. Assistant Vice President,
Columbus, OH 43219 Evergreen Investments from 2000 to 2004; Fund Accounting
01/25/63 Manager, Fidelity Investments from 1998 to 2000.
- -----------------------------------------------------------------------------------------------------------------------
Deborah A. Lamb Executive Vice Since 2003 Chief Compliance Officer and Managing Director of Trusco
50 Hurt Plaza President, Capital Management, Inc. since March 2003 and President of
Atlanta, GA 30303 Assistant Investment Industry Consultants, LLC since June 2000.
10/02/52 Secretary and Director of Compliance at INVESCO, Inc. from March 1995 to
CCO June 2000.
- -----------------------------------------------------------------------------------------------------------------------
Cynthia J. Surprise Secretary Since 2005 Senior Counsel, Legal Services, BISYS Fund Services since
3435 Stelzer Road December 2004. Director and Counsel, Investors Bank & Trust
Columbus, OH 43219 Company from October 1999 to November 2004.
07/08/46
- -----------------------------------------------------------------------------------------------------------------------
Alaina V. Metz Assistant Since 2004 Vice President, Blue Sky Compliance, BISYS Fund Services
3435 Stelzer Road Secretary since January 2002. Chief Administrative Officer, Blue Sky
Columbus, OH 43219 Compliance, BISYS Fund Services from June 1995 to January
04/07/67 2002.
- -----------------------------------------------------------------------------------------------------------------------
Julie M. Powers Assistant Since 2004 Senior Paralegal, Legal Services, BISYS Fund Services since
3435 Stelzer Road Secretary June 2000. Paralegal of Phillips, Lytle, Hitchcock, Blaine &
Columbus, OH 43219 Huber LLP from March 1998 to June 2000.
10/08/69
- -----------------------------------------------------------------------------------------------------------------------
</Table>
138
EXPENSE EXAMPLES (UNAUDITED)
- --------------------------------------------------------------------------------
As a shareholder of the STI Classic Funds, you incur two types of costs: (1)
transaction costs, including sales charges; and redemption fees; (2) ongoing
costs, including management fees; distribution [and/or service] 12b-1 fees; and
other Fund expenses. This example is intended to help you understand your
ongoing costs (in dollars) of investing in the STI Classic Funds and to compare
these costs with the ongoing costs of investing in other mutual funds.
The Example is based on an investment of $1,000 invested at the beginning of the
period and held for the entire period from October 1, 2004 through March 31,
2005.
Actual Expenses
The table below provides information about actual account values and actual
expenses. You may use the information below, together with the amount you
invested, to estimate the expenses that you paid over the period. Simply divide
your account value by $1,000 (for example, an $8,600 account value divided by
$1,000 = 8.6), then multiply the result by the number in the table under the
heading entitled "Expenses Paid During Period" to estimate the expenses you paid
on your account during this period.
<Table>
<Caption>
Beginning Ending Expense Paid Expense Ratio
Account Value Account Value During Period* During Period**
10/01/04 3/31/05 10/01/04-3/31/05 10/01/04-3/31/05
------------- ------------- ----------------- -----------------
Aggressive Growth Stock Fund......... T Shares $1,000.00 $1,045.50 $6.17 1.21%
A Shares 1,000.00 1,043.50 7.95 1.56%
L Shares 1,000.00 1,040.40 10.99 2.16%
Balanced Fund........................ T Shares 1,000.00 1,025.60 4.95 0.98%
A Shares 1,000.00 1,024.10 6.36 1.26%
L Shares 1,000.00 1,020.70 9.98 1.98%
Capital Appreciation Fund............ T Shares 1,000.00 1,034.40 5.99 1.18%
A Shares 1,000.00 1,030.20 9.31 1.84%
L Shares 1,000.00 1,030.10 11.08 2.19%
Emerging Growth Stock Fund........... T Shares 1,000.00 1,076.90 6.27 1.21%
A Shares 1,000.00 1,074.80 8.17 1.58%
L Shares 1,000.00 1,072.70 10.80 2.09%
Growth and Income Fund............... T Shares 1,000.00 1,116.50 5.01 0.95%
A Shares 1,000.00 1,115.70 6.17 1.17%
L Shares 1,000.00 1,111.20 10.05 1.91%
International Equity Fund............ T Shares 1,000.00 1,135.10 7.29 1.37%
A Shares 1,000.00 1,132.80 9.09 1.71%
L Shares 1,000.00 1,128.20 12.58 2.37%
International Equity Index Fund...... T Shares 1,000.00 1,151.90 5.15 0.96%
A Shares 1,000.00 1,149.10 7.18 1.34%
L Shares 1,000.00 1,145.90 10.54 1.97%
Life Vision Aggressive Growth Fund... T Shares 1,000.00 1,089.90 1.09 0.21%
A Shares 1,000.00 1,087.40 2.81 0.54%
B Shares 1,000.00 1,085.50 5.30 1.02%
Life Vision Conservative Fund........ T Shares 1,000.00 1,028.90 0.86 0.17%
A Shares 1,000.00 1,027.10 2.78 0.55%
B Shares 1,000.00 1,025.00 4.80 0.95%
Life Vision Growth and Income Fund... T Shares 1,000.00 1,070.00 1.08 0.21%
A Shares 1,000.00 1,067.40 2.89 0.56%
B Shares 1,000.00 1,065.20 5.20 1.01%
Life Vision Moderate Growth Fund..... T Shares 1,000.00 1,054.90 1.18 0.23%
A Shares 1,000.00 1,052.90 2.25 0.44%
B Shares 1,000.00 1,051.70 4.81 0.94%
Mid-Cap Equity Fund.................. T Shares 1,000.00 1,141.90 6.35 1.19%
A Shares 1,000.00 1,139.10 8.59 1.61%
L Shares 1,000.00 1,136.70 11.61 2.18%
</Table>
139
- --------------------------------------------------------------------------------
<Table>
<Caption>
Beginning Ending Expense Paid Expense Ratio
Account Value Account Value During Period* During Period**
10/01/04 3/31/05 10/01/04-3/31/05 10/01/04-3/31/05
------------- ------------- ----------------- -----------------
Mid-Cap Value Equity Fund............ T Shares $1,000.00 $1,108.00 $6.36 1.21%
A Shares 1,000.00 1,105.60 8.40 1.60%
L Shares 1,000.00 1,103.90 9.91 1.89%
Small Cap Growth Stock Fund.......... T Shares 1,000.00 1,097.90 6.28 1.20%
A Shares 1,000.00 1,095.50 8.31 1.59%
L Shares 1,000.00 1,092.50 11.48 2.20%
Small Cap Value Equity Fund.......... T Shares 1,000.00 1,119.00 6.34 1.20%
A Shares 1,000.00 1,116.60 7.70 1.46%
L Shares 1,000.00 1,117.20 7.81 1.48%
Strategic Quantitative Equity Fund... T Shares 1,000.00 1,134.90 5.85 1.10%
A Shares 1,000.00 1,132.80 7.34 1.38%
L Shares 1,000.00 1,128.80 11.20 2.11%
Tax Sensitive Growth Stock Fund...... T Shares 1,000.00 1,044.20 6.12 1.20%
A Shares 1,000.00 1,042.30 8.15 1.60%
L Shares 1,000.00 1,039.00 11.18 2.20%
Value Income Stock Fund.............. T Shares 1,000.00 1,083.90 4.42 0.85%
A Shares 1,000.00 1,082.50 6.18 1.19%
L Shares 1,000.00 1,079.00 9.64 1.86%
</Table>
- ---------------
* Expenses are equal to the average account value times the Fund's annualized
expense ratio multiplied by the number of days in the most recent half-year
divided by the number of days in the year.
** Annualized.
Hypothetical Example
The table below provides information about hypothetical account values and
hypothetical expenses based on each STI Classic Funds' actual expense ratio and
an assumed rate of return of 5% per year before expenses, which is not the
Fund's actual return. The hypothetical account values and expenses may not be
used to estimate the actual ending account balance or expenses you paid for the
period. You may use this information to compare this 5% hypothetical example
with the 5% hypothetical examples that appear in the shareholder reports of
other funds.
Please note that the expenses shown in the table are meant to highlight your
ongoing costs only and do not reflect any transactional costs. 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.
<Table>
<Caption>
Beginning Ending Expense Paid Expense Ratio
Account Value Account Value During Period* During Period**
10/01/04 3/31/05 10/01/04-3/31/05 10/01/04-3/31/05
------------- ------------- ----------------- -----------------
Aggressive Growth Stock Fund......... T Shares $1,000.00 $1,018.90 $6.09 1.21%
A Shares 1,000.00 1,017.15 7.85 1.56%
L Shares 1,000.00 1,014.16 10.85 2.16%
Balanced Fund........................ T Shares 1,000.00 1,020.04 4.94 0.98%
A Shares 1,000.00 1,018.65 6.34 1.26%
L Shares 1,000.00 1,015.06 9.95 1.98%
Capital Appreciation Fund............ T Shares 1,000.00 1,019.05 5.94 1.18%
A Shares 1,000.00 1,015.76 9.25 1.84%
L Shares 1,000.00 1,014.01 11.00 2.19%
Emerging Growth Stock Fund........... T Shares 1,000.00 1,018.90 6.09 1.21%
A Shares 1,000.00 1,017.05 7.95 1.58%
L Shares 1,000.00 1,014.51 10.50 2.09%
Growth and Income Fund............... T Shares 1,000.00 1,020.19 4.78 0.95%
A Shares 1,000.00 1,019.10 5.89 1.17%
L Shares 1,000.00 1,015.41 9.60 1.91%
</Table>
140
EXPENSE EXAMPLES (UNAUDITED)
- --------------------------------------------------------------------------------
<Table>
<Caption>
Beginning Ending Expense Paid Expense Ratio
Account Value Account Value During Period* During Period**
10/01/04 3/31/05 10/01/04-3/31/05 10/01/04-3/31/05
------------- ------------- ----------------- -----------------
International Equity Fund............ T Shares $1,000.00 $1,018.10 $6.89 1.37%
A Shares 1,000.00 1,016.40 8.60 1.71%
L Shares 1,000.00 1,013.11 11.90 2.37%
International Equity Index Fund...... T Shares 1,000.00 1,020.14 4.84 0.96%
A Shares 1,000.00 1,018.25 6.74 1.34%
L Shares 1,000.00 1,015.11 9.90 1.97%
Life Vision Aggressive Growth Fund... T Shares 1,000.00 1,023.88 1.06 0.21%
A Shares 1,000.00 1,022.24 2.72 0.54%
B Shares 1,000.00 1,019.85 5.14 1.02%
Life Vision Conservative Fund........ T Shares 1,000.00 1,024.08 0.86 0.17%
A Shares 1,000.00 1,022.19 2.77 0.55%
B Shares 1,000.00 1,020.19 4.78 0.95%
Life Vision Growth and Income Fund... T Shares 1,000.00 1,023.88 1.06 0.21%
A Shares 1,000.00 1,022.14 2.82 0.56%
B Shares 1,000.00 1,019.90 5.09 1.01%
Life Vision Moderate Growth Fund..... T Shares 1,000.00 1,023.78 1.16 0.23%
A Shares 1,000.00 1,022.74 2.22 0.44%
B Shares 1,000.00 1,020.24 4.73 0.94%
Mid-Cap Equity Fund.................. T Shares 1,000.00 1,019.00 5.99 1.19%
A Shares 1,000.00 1,016.90 8.10 1.61%
L Shares 1,000.00 1,014.06 10.95 2.18%
Mid-Cap Value Equity Fund............ T Shares 1,000.00 1,018.90 6.09 1.21%
A Shares 1,000.00 1,016.95 8.05 1.60%
L Shares 1,000.00 1,015.51 9.50 1.89%
Small Cap Growth Stock Fund.......... T Shares 1,000.00 1,018.95 6.04 1.20%
A Shares 1,000.00 1,017.00 8.00 1.59%
L Shares 1,000.00 1,013.96 11.05 2.20%
Small Cap Value Equity Fund.......... T Shares 1,000.00 1,018.95 6.04 1.20%
A Shares 1,000.00 1,017.65 7.34 1.46%
L Shares 1,000.00 1,017.55 7.44 1.48%
Strategic Quantitative Equity Fund... T Shares 1,000.00 1,019.45 5.54 1.10%
A Shares 1,000.00 1,018.05 6.94 1.38%
L Shares 1,000.00 1,014.41 10.60 2.11%
Tax Sensitive Growth Stock Fund...... T Shares 1,000.00 1,018.95 6.04 1.20%
A Shares 1,000.00 1,016.95 8.05 1.60%
L Shares 1,000.00 1,013.96 11.05 2.20%
Value Income Stock Fund.............. T Shares 1,000.00 1,020.69 4.28 0.85%
A Shares 1,000.00 1,019.00 5.99 1.19%
</Table>
- ---------------
* Expenses are equal to the average account value times the Fund's annualized
expense ratio multiplied by the number of days in the most recent half-year
divided by the number of days in the year.
** Annualized.
141
SPECIAL MEETING OF SHAREHOLDERS (UNAUDITED)
A special meeting of the shareholders of STI Classic Funds was held on November
15, 2004. At the meeting shareholders voted and approved the following
proposals:
Proposal 1: To consider and vote on the election of members to the Board
of Trustees of the Trust.
Proposal 2: To approve the investment subadvisory agreement between Trusco
Capital Management, Inc. and Zevenberger Capital Investments LLC with
respect to STI Classic Funds' Aggressive Growth Stock Fund and the Emerging
Growth Stock Fund.
The results of this meeting are presented below:
Proposal 1:
RICHARD W. COURTS, II
<Table>
<Caption>
# of Shares % of Outstanding Shares % of Shares Present
----------------- ----------------------- -------------------
Affirmative............................. 8,643,079,484.413 57.607% 99.775%
Withhold................................ 19,527,110.520 .130% .225%
----------------- ------ -------
Total................................... 8,662,606,594.933 57.737% 100.000%
</Table>
THOMAS C. GALLAGHER
<Table>
<Caption>
# of Shares % of Outstanding Shares % of Shares Present
----------------- ----------------------- -------------------
Affirmative............................. 8,647,093,895.243 57.634% 99.821%
Withhold................................ 15,512,699.690 .103% .179%
----------------- ------ -------
Total................................... 8,662,606,594.933 57.737% 100.000%
</Table>
F. WENDELL GOOCH
<Table>
<Caption>
# of Shares % of Outstanding Shares % of Shares Present
----------------- ----------------------- -------------------
Affirmative............................. 8,646,942,792.353 57.632% 99.819%
Withhold................................ 15,663,802.580 .105% .181%
----------------- ------ -------
Total................................... 8,662,606,594.933 57.737% 100.000%
</Table>
SIDNEY E. HARRIS
<Table>
<Caption>
# of Shares % of Outstanding Shares % of Shares Present
----------------- ----------------------- -------------------
Affirmative............................. 8,643,726,038.293 57.611% 99.782%
Withhold................................ 18,880,556.640 .126% .218%
----------------- ------ -------
Total................................... 8,662,606,594.933 57.737% 100.000%
</Table>
WARREN Y. JOBE
<Table>
<Caption>
# of Shares % of Outstanding Shares % of Shares Present
----------------- ----------------------- -------------------
Affirmative............................. 8,643,699,091.683 57.611% 99.782%
Withhold................................ 18,907,503.250 .126% .218%
----------------- ------ -------
Total................................... 8,662,606,594.933 57.737% 100.000%
</Table>
CLARENCE H. RIDLEY
<Table>
<Caption>
# of Shares % of Outstanding Shares % of Shares Present
----------------- ----------------------- -------------------
Affirmative............................. 8,643,065,943.353 57.607% 99.774%
Withhold................................ 19,540,651.580 .130% .226%
----------------- ------ -------
Total................................... 8,662,606,594.933 57.737% 100.000%
</Table>
142
SPECIAL MEETING OF SHAREHOLDERS (UNAUDITED)
JAMES O. ROBBINS
<Table>
<Caption>
# of Shares % of Outstanding Shares % of Shares Present
----------------- ----------------------- -------------------
Affirmative............................. 8,643,422,544.023 57.609% 99.779%
Withhold................................ 19,184,050.910 .128% .221%
----------------- ------ -------
Total................................... 8,662,606,594.933 57.737% 100.000%
</Table>
JONATHAN T. WALTON
<Table>
<Caption>
# of Shares % of Outstanding Shares % of Shares Present
----------------- ----------------------- -------------------
Affirmative............................. 8,647,114,982.373 57.634% 99.821%
Withhold................................ 15,491,612.560 .103% .179%
----------------- ------ -------
Total................................... 8,662,606,594.933 57.737% 100.000%
</Table>
CHARLES D. WINSLOW
<Table>
<Caption>
# of Shares % of Outstanding Shares % of Shares Present
----------------- ----------------------- -------------------
Affirmative............................. 8,643,530,202.353 57.610% 99.780%
Withhold................................ 19,076,392.580 .127% .220%
----------------- ------ -------
Total................................... 8,662,606,594.933 57.737% 100.000%
</Table>
Proposal 2:
<Table>
<Caption>
Aggressive Growth # of Shares % of Outstanding Shares % of Shares Present
Stock Fund ----------------- ----------------------- -------------------
Affirmative............................. 3,631,937.000 99.844% 100.000%
Against................................. .000 .000% .000%
Abstain................................. .000 .000% .000%
----------------- ------ -------
Total................................... 3,631,937.000 99.844% 100.000%
</Table>
<Table>
<Caption>
Emerging Growth # of Shares % of Outstanding Shares % of Shares Present
Stock Fund ----------------- ----------------------- -------------------
Affirmative............................. 1,786,490.000 99.583% 100.000%
Against................................. .000 .000% .000%
Abstain................................. .000 .000% .000%
----------------- ------ -------
Total................................... 1,786,490.000 99.583% 100.000%
</Table>
Proxy Voting
Information regarding the policies and procedures that the Funds use to
determine how to vote proxies relating to portfolio securities during the period
ended March 31, 2005 is available (1) without charge, upon request, by calling
1-800-428-6970, or on the Funds' website at www.sticlassicfunds.com, and (2) on
the Securities and Exchange Commission's website at www.sec.gov.
Other Information
The Funds file a complete list of their portfolio holdings with the Securities
and Exchange Commission for the first and third quarters of each fiscal year on
Form N-Q. Forms N-Q are available free of charge on the Securities and Exchange
Commission's website at www.sec.gov. You may also review, or for a fee, copy
those documents by visiting the Securities and Exchange Commission's Public
Reference Room in Washington, D.C. Information on the operation of the Public
Reference Room may be obtained by calling the Securities and Exchange Commission
at 1-800-SEC-0330.
143
2005 Annual Report
---------------------------------------------
STI Classic Fixed Income Funds
---------------------------------------------
STI Classic Funds
March 31, 2005
TABLE OF CONTENTS
================================================================================
STI CLASSIC FIXED INCOME FUNDS ANNUAL REPORT MARCH 31, 2005
President and CIO Letter to Shareholders..............................................1
MANAGEMENT DISCUSSION AND ANALYSIS
Florida Tax-Exempt Bond Fund..........................................................3
Georgia Tax-Exempt Bond Fund..........................................................5
High Income Fund......................................................................7
Investment Grade Bond Fund............................................................9
Investment Grade Tax-Exempt Bond Fund................................................11
Limited-Term Federal Mortgage Securities Fund........................................13
Maryland Municipal Bond Fund.........................................................15
North Carolina Tax-Exempt Bond Fund..................................................17
Short-Term Bond Fund.................................................................19
Short-Term U.S. Treasury Securities Fund.............................................21
Strategic Income Fund................................................................23
U.S. Government Securities Fund......................................................25
Virginia Intermediate Municipal Bond Fund............................................27
Virginia Municipal Bond Fund.........................................................29
SCHEDULE OF PORTFOLIO INVESTMENTS....................................................31
Notes to Schedule of Portfolio Investments...........................................76
Statements of Assets and Liabilities.................................................77
Statements of Operations.............................................................79
Statements of Changes in Net Assets..................................................83
Financial Highlights.................................................................89
Notes to Financial Highlights.......................................................103
Notes to Financial Statements.......................................................104
Report of Independent Registered Public Accounting Firm.............................123
Trustees and Officers of the STI Classic Funds......................................124
Expense Examples....................................................................126
Special Meeting of Shareholders.....................................................128
PRESIDENT AND CIO LETTER TO SHAREHOLDERS
===============================================================================
MARCH 31, 2005
Dear Valued STI Classic Funds Shareholder,
The STI Classic Funds changed its official fiscal year end from May 31 to March
31. As a result, the "annual" shareholder letter this year will cover the 10
month period from June 1, 2004 through March 31, 2005. A great many pressures,
policies, and events took place during this shorter time frame, and we will
provide our perspective on how this has affected the direction and pace of the
economy and financial markets.
Amid a firming economic backdrop and despite rising "headwinds," both the equity
and bond markets registered net gains in the 10 month period ended March 31,
2005. The large-cap benchmark S&P 500 stock index rose 6.9% on a total return
basis, while the Lehman Aggregate Bond Index gained 4.3%, though the path to
both performances was anything but straight. Equities hovered in a trading range
through the summer, before enjoying a post-election rally, while bond yields
fell steadily through October, before bottoming and moving higher in the first
quarter this year.
The economy demonstrated slow but steady and sustainable improvement throughout
the past 10 months. For example, the stimulative effects of the previous tax
cuts and mortgage rate declines faded as expected, and were gradually replaced
with employment and income gains. Headline inflation remained near cycle lows
for much of the period, though a combination of higher oil prices and emerging
corporate pricing power signaled a turning point and an emerging upward trend.
While the handoff from stimulus to sustainability was not exactly smooth, the
evidence was adequate to convince the Federal Reserve Board (the "Fed") that the
downside risks to the expansion were sufficiently reduced to begin raising
short-term interest rates from the 1% low. Over the ensuing months, the Fed
raised the overnight fed funds rate a total of seven times to 2.75% by March 31.
Several headwinds emerged as visible sources of restraint on growth during the
period, and their influence persists today. These include:
- - Higher energy prices: reduces discretionary income and raises operating
costs
- - Rising interest rates: raises cost of capital and slows housing
- - Weaker dollar: raises the costs of imports and keeps upward pressure on
rates
- - Lower federal deficit: reduction of stimulus to supplement internal
economic strength
In the fixed-income markets, three important trends affected relative
performance and our strategy. The first trend was higher short-term interest
rates and the flattening effect exerted on the shape of the yield curve. The
spread between short and long maturity rates was near an extreme level, so we
implemented a "barbell" maturity structure in our bond portfolios to take
advantage of this possibility. The second factor was a further narrowing in the
credit yield spread between Treasury and Corporate securities, due to signs of
economic strength and improving liquidity. We maintained overweight positions in
corporate bonds for much of the time to take advantage of this relative
outperformance. Finally, the rising risk of higher inflation, combined with
favorable supply/demand factors prompted us to establish an overweight position
in Treasury Inflation-Index Securities, commonly referred to as TIPS. These
strategies proved helpful to our shareholders as longer and shorter-term
securities outperformed the middle of the yield curve, and corporate bonds
outperformed Treasuries.
In the equity markets, oil and commodity price increases dominated stock
performance. Energy stocks were the dominant sector, increasing 44% during the
10 months, followed by utilities (+28%) and materials (+20%), though these last
two sectors have relatively small market capitalizations. Performance in the
larger technology (-3%), health care (-1%), and finance (2%) sectors lagged. The
surge in energy stocks helped the value style outperform growth, while
international stocks significantly outperformed the S&P 500. Also, small-cap
stocks extended their outperformance string versus large-caps.
1
Looking ahead, we remain positive on the outlook for the economy and corporate
profits, but the rate of growth in both is likely to slow closer to historical
averages, due to rising interest rates and more difficult comparisons,
respectively. Economic growth may slow temporarily over the near term, but we
expect real Gross Domestic Product(1) growth rate to match or slightly exceed
the 3.0% average. We believe core inflation may trend moderately higher,
supporting the Fed's plan to raise interest rates gradually in the months ahead,
and the dollar could be under downward pressure.
We believe equities can perform well relative to bonds in the projected
environment, despite the headwinds discussed above, though the sectors with the
strongest returns are likely to be quite different from those of the past 10
months. In the bond markets, we see continuing growth and emerging inflation
pushing bond yields moderately higher. However, with the yield curve relatively
flat and credit yield spreads at narrow levels, relative outperformance in
bonds, like stocks, should come from different sectors in the period ahead.
In closing, we want to take this opportunity to thank you again for investing in
STI Classic Funds. We are continuing efforts to broaden fund offerings and
expand choices, while maintaining our unwavering commitment to the strong,
independent research and consistent investment discipline that has helped make
STI Classic Funds a premier source of value for our clients.
Sincerely,
/S/ Douglas S. Phillips
Douglas S. Phillips, CFA
President and Chief Investment Officer
Trusco Capital Management
(1) The Gross Domestic Product ("GDP") measures the market value of the goods
and services produced by labor and property in the United States.
2
FLORIDA TAX-EXEMPT BOND FUND
================================================================================
PORTFOLIO MANAGER(S)
- - Ronald Schwartz, CFA, CFP
INVESTMENT CONCERNS
Mutual fund investing involves risk, including possible loss of principal. Bonds
offer a relatively stable level of income, although bond prices will fluctuate
providing the potential for principal gain or loss. Intermediate-term,
higher-quality bonds generally offer less risk than longer-term bonds and a
lower rate of return.
The Fund is subject to the risk that principal value reacts in opposition to the
movement of interests rates and that a rising interest rate environment
increases the risk of loss of principal.
The geographical concentration of portfolio holdings in this fund may involve
increased risk.
The Fund's income may be subject to certain state and local taxes and, depending
on your tax status, the federal alternative minimum tax.
MANAGEMENT DISCUSSION & ANALYSIS
Q. How did the Fund perform against its benchmark for the period ended March
31, 2005?
A: For the 10 months ended March 31, 2005, the Fund's produced a total return
of 3.31% (T Shares) versus an average return of 4.65% for the Lehman
Brothers 10 Year Municipal Bond Index. Lack of exposure to the longer
maturities resulted in the Fund's underperformance. The Fund maintained an
overweight of 0 to 4-year and 15-year to 20-year paper. The Federal Open
Market Committee commenced its first tightening cycle in 5 years by raising
the federal funds rate from 1% to 2.75% during the period. The 5-year
generic AAA rated municipal bond yields increased 14 basis points (0.14%)
over the 10 months, while the 10- and 30-year yields declined 9 and 41
basis points (0.09% and 0.41%), respectively. The 2-year to 30-year
municipal bond yield curve flattened 116 basis points (1.16%) to 183 basis
points (1.83%) of slope.
Q. What factors influenced the Fund's performance for the period ended March
31, 2005?
A: The primary factor behind the Fund's underperformance was its
underweighting of maturities exceeding 15 years.
Q. How do you plan to position the Fund, based on market conditions?
A: The Fund continues to favor premium bonds (prices greater than par) for
their income benefit and relative price stability. We believe all activity
will occur within an investment grade construct and the average credit
quality of Fund holdings should remain high. The current yield curve
distribution remains appropriate.(1)
CREDIT QUALITY BREAKDOWN (as of March 31, 2005)
as a percentage of total investments
[PIE CHART]
Cash Equivalents 8.5%
Not Rated 2.9%
AA 11.0%
AAA 77.6%
(1) PORTFOLIO COMPOSITION IS SUBJECT TO CHANGE
3
FLORIDA TAX-EXEMPT BOND FUND
================================================================================
GROWTH OF $10,000 INVESTMENT (as of March 31,2005)
[LINE GRAPH]
Lehman Brothers Florida Tax-Exempt
10 Year Municipal Bond Index Bond Fund (T Shares)
03/95 10000 10000
10265 10209
10625 10520
12/95 10959 10911
10887 10756
10921 10816
11139 11047
11456 11341
11454 11233
11831 11592
12199 11911
12/97 12514 12227
12644 12326
12835 12509
13273 12940
13360 12991
13436 13017
13129 12718
13213 12713
12/99 13194 12690
13501 13032
13716 13223
14056 13497
14614 14168
14953 14444
15018 14504
15462 14902
12/01 15288 14689
15474 14819
16106 15438
16927 16269
16844 16241
17051 16412
17586 16806
17564 16760
12/03 17803 16908
18089 17050
17659 16638
18390 17198
18542 17276
03/05 18419 17149
[ ] Florida Tax-Exempt Bond Fund (T Shares)
[ ] Lehman Brothers 10 Year Municipal Bond Index
This chart assumes an initial hypothetical investment of $10,000 made on
3/31/95. Total return is based on net change in N.A.V. (net asset value)
assuming reinvestment of distributions. Returns shown on this page include
reinvestment of all dividends and other distributions.
The Funds performance is compared to the Lehman Brothers 10 Year Municipal Bond
Index a widely recognized index of long-term investment grade tax-exempt bonds.
The index includes general obligation bonds, revenue bonds, insured bonds and
prefunded bonds with maturities between 8 and 12 years. The index is unmanaged
and does not reflect the deduction of fees or taxes associated with a mutual
fund, such as investment management and fund accounting fees. Investors cannot
invest directly in an index, although they can invest in its underlying
securities.
<Table>
<Caption>
- ------------------------------------------------------------------------------------------------------------------------------------
Average Annual Total Returns as of 3/31/05 (%)
--------------------------------------------------------
FLORIDA TAX-EXEMPT BOND FUND INCEPTION DATE 10 MONTH** 1 YEAR 3 YEAR 5 YEAR 10 YEAR SINCE
INCEPTION
- ------------------------------------------------------------------------------------------------------------------------------------
A SHARES WITHOUT SALES CHARGE 01/18/94 3.24 0.48 4.77 5.45 5.34 5.17
CHARGE WITH SALES CHARGE* -0.67 -3.29 3.44 4.64 4.93 4.82
- ------------------------------------------------------------------------------------------------------------------------------------
L SHARES WITHOUT CDSC 06/01/95 2.66 -0.16 4.22 4.91 -- 4.61
WITH CDSC* 0.67 -2.09 4.22 4.91 -- 4.61
- ------------------------------------------------------------------------------------------------------------------------------------
T SHARES 01/25/94 3.31 0.58 4.99 5.64 5.54 5.38
- ------------------------------------------------------------------------------------------------------------------------------------
LEHMAN BROTHERS 10 YEAR MUNICIPAL BOND INDEX 4.65 1.82 5.98 6.41 6.30 --
- ------------------------------------------------------------------------------------------------------------------------------------
</Table>
PAST PERFORMANCE DOES NOT GUARANTEE FUTURE RESULTS. THE PERFORMANCE DATA QUOTED
REPRESENTS PAST PERFORMANCE AND CURRENT RETURNS MAY BE LOWER OR HIGHER. TOTAL
RETURN FIGURES INCLUDE CHANGE IN SHARE PRICE, REINVESTMENT OF DIVIDENDS AND
CAPITAL GAINS AND DO NOT REFLECT TAXES THAT A SHAREHOLDER WOULD PAY ON FUND
DISTRIBUTIONS OR ON THE REDEMPTION OF FUND SHARES. THE INVESTMENT RETURN AND
PRINCIPAL VALUE WILL FLUCTUATE SO THAT AN INVESTOR'S SHARES, WHEN REDEEMED MAY
BE WORTH MORE OR LESS THAN THE ORIGINAL COST. FOR PERFORMANCE DATA CURRENT TO
THE MOST RECENT MONTH END, VISIT OUR WEBSITE AT WWW.STICLASSICFUNDS.COM.
*Class A Share performance reflects the maximum front-end sales charge of 3.75%
and Class L Shares reflect the maximum CDSC (contingent deferred sales charge)
of 2.00% in year one only.
**Aggregate total return
4
GEORGIA TAX-EXEMPT BOND FUND
================================================================================
PORTFOLIO MANAGER(S)
- - Chris Carter, CFA
INVESTMENT CONCERNS
Mutual fund investing involves risk, including possible loss of principal. Bonds
offer a relatively stable level of income, although bond prices will fluctuate
providing the potential for principal gain or loss. Intermediate-term,
higher-quality bonds generally offer less risk than longer-term bonds and a
lower rate of return.
The geographical concentration of portfolio holdings in this fund may involve
increased risk.
The Fund's income may be subject to certain state and local taxes and, depending
on your tax status, the federal alternative minimum tax.
The Fund is subject to the risk that principal value reacts in opposition to the
movement of interests rates and that a rising interest rate environment
increases the risk of loss of principal.
MANAGEMENT DISCUSSION & ANALYSIS
Q. How did the Fund perform against its benchmark for the period ended March
31, 2005?
A: For the 10 months ended March 31, 2005, the Fund's produced a total return
of 4.73% (T Shares) versus an average return of 4.65% for the Lehman
Brothers 10 Year Municipal Bond Index. The Fund's "barbell" yield curve
strategy contributed to its outperformance. The Fund maintained an
overweight of 0 to 4-year and 15-year and longer paper. Within the latter
maturity range, the period witnessed exposure to the 15-year sector reduced
while exposure to the long bond sector was increased. The Federal Open
Market Committee commenced its first tightening cycle in 5 years by raising
the federal funds rate from 1% to 2.75% during the period. The 5-year
generic AAA rated municipal bond yields increased 14 basis points (0.14%)
over the 10 months, while the 10- and 30-year yields declined 9 and 41
basis points (0.09% and 0.41%), respectively. The 2-year to 30-year
municipal bond yield curve flattened 116 basis points (1.16%) to 183 basis
points (1.83%) of slope.
Q. What factors influenced the Fund's performance for the period ended March
31, 2005?
A: The primary factor behind the Fund's outperformance was its high relative
allocation to callable bonds with 5% or greater coupons and final
maturities exceeding 15 years. In addition, one bond holding was
pre-refunded during the period.
Q. How do you plan to position the Fund, based on market conditions?
A: The Fund continues to favor premium bonds (prices greater than par) for
their income benefit and relative price stability. We believe all activity
will occur within an investment grade construct and the average credit
quality of Fund holdings should remain high. The current yield curve
distribution remains appropriate.(1)
CREDIT QUALITY BREAKDOWN (as of March 31, 2005)(1)
as a percentage of total investments
[PIE CHART]
Cash Equivalents 2.5%
AAA 73.1%
A-1 3.6%
AA 7.0%
A 11.5%
BBB 2.3%
(1) PORTFOLIO COMPOSITION IS SUBJECT TO CHANGE
5
GEORGIA TAX-EXEMPT BOND FUND
================================================================================
GROWTH OF $10,000 INVESTMENT (as of March 31,2005)
[LINE GRAPH]
Lehman Brothers Georgia Tax-Exempt
10 Year Municipal Bond Index Bond Fund (T Shares]
03/95 10000 10000
10265 10210
10625 10466
12/95 10959 10808
10887 10723
10921 10740
11139 10922
11456 11189
11454 11135
11831 11479
12199 11812
12/97 12514 12104
12644 12188
12835 12348
13273 12753
13360 12804
13436 12812
13129 12517
13213 12531
12/99 13194 12515
13501 12750
13716 12911
14056 13178
14614 13694
14953 14007
15018 14048
15462 14432
12/01 15288 14286
15474 14365
16106 14932
16927 15587
16844 15596
17051 15704
17586 16077
17564 16065
12/03 17803 16197
18089 16341
17659 15900
18390 16499
18542 16657
03/05 18419 16593
[ ] Georgia Tax-Exempt Bond Fund (T Shares]
[ ] Lehman Brothers 10 Year Municipal Bond Index
This chart assumes an initial hypothetical investment of $10,000 made on
3/31/95. Total return is based on net change in N.A.V. (net asset value)
assuming reinvestment of distributions. Returns shown on this page include
reinvestment of all dividends and other distributions.
The Funds performance is compared to the Lehman Brothers 10 Year Municipal Bond
Index a widely recognized index of long-term investment grade tax-exempt bonds.
The index includes general obligation bonds, revenue bonds, insured bonds and
prefunded bonds with maturities between 8 and 12 years. The index is unmanaged
and does not reflect the deduction of fees or taxes associated with a mutual
fund, such as investment management and fund accounting fees. Investors cannot
invest directly in an index, although they can invest in its underlying
securities.
<Table>
<Caption>
- ------------------------------------------------------------------------------------------------------------------------------------
AVERAGE ANNUAL TOTAL RETURNS AS OF 3/31/05 (%)
-------------------------------------------------------
SINCE
GEORGIA TAX-EXEMPT BOND FUND INCEPTION DATE 10 MONTH** 1 YEAR 3 YEAR 5 YEAR 10 YEAR INCEPTION
- ------------------------------------------------------------------------------------------------------------------------------------
A SHARES WITHOUT SALES CHARGE 01/19/94 4.57 1.26 4.71 5.19 4.98 4.40
CHARGE WITH SALES CHARGE* 0.64 -2.50 3.39 4.39 4.57 4.04
- ------------------------------------------------------------------------------------------------------------------------------------
L SHARES WITHOUT CDSC 06/06/95 4.09 0.80 4.17 4.69 -- 4.21
WITH CDSC* 2.09 -1.12 4.17 4.69 -- 4.21
- ------------------------------------------------------------------------------------------------------------------------------------
T SHARES 01/18/94 4.73 1.54 4.92 5.41 5.19 4.60
- ------------------------------------------------------------------------------------------------------------------------------------
LEHMAN BROTHERS 10 YEAR 4.65 1.82 5.98 6.41 6.30 --
MUNICIPAL BOND INDEX
- ------------------------------------------------------------------------------------------------------------------------------------
</Table>
PAST PERFORMANCE DOES NOT GUARANTEE FUTURE RESULTS. THE PERFORMANCE DATA QUOTED
REPRESENTS PAST PERFORMANCE AND CURRENT RETURNS MAY BE LOWER OR HIGHER. TOTAL
RETURN FIGURES INCLUDE CHANGE IN SHARE PRICE, REINVESTMENT OF DIVIDENDS AND
CAPITAL GAINS AND DO NOT REFLECT TAXES THAT A SHAREHOLDER WOULD PAY ON FUND
DISTRIBUTIONS OR ON THE REDEMPTION OF FUND SHARES. THE INVESTMENT RETURN AND
PRINCIPAL VALUE WILL FLUCTUATE SO THAT AN INVESTOR'S SHARES, WHEN REDEEMED MAY
BE WORTH MORE OR LESS THAN THE ORIGINAL COST. FOR PERFORMANCE DATA CURRENT TO
THE MOST RECENT MONTH END, VISIT OUR WEBSITE AT WWW.STICLASSICFUNDS.COM.
*Class A Share performance reflects the maximum front-end sales charge of 3.75%
and Class L Shares reflect the maximum CDSC (contingent deferred sales charge)
of 2.00% in year one only.
**Aggregate total return
6
HIGH INCOME FUND
================================================================================
PORTFOLIO MANAGER(S)
- - George Goudelias
- - Michael McEachern, CFA
INVESTMENT CONCERNS
Mutual fund investing involves risk, including possible loss of principal. Bonds
offer a relatively stable level of income, although bond prices will fluctuate
providing the potential for principal gain or loss. Intermediate-term,
higher-quality bonds generally offer less risk than longer-term bonds and a
lower rate of return.
Although the Fund's yield may be higher than that of fixed income funds that
purchase higher-rated securities, the potentially higher yield is a function of
the greater risk that the fund's share price will decline.
The Fund is subject to the risk that principal value reacts in opposition to the
movement of interests rates and that a rising interest rate environment
increases the risk of loss of principal.
MANAGEMENT DISCUSSION & ANALYSIS
Q. How did the Fund perform against its benchmark for the period ended March
31, 2005?
A: During the fiscal year ended March 31, 2005, the total return for the High
Income Fund was 9.31% (T Shares) compared to 9.42% for the Fund's
benchmark, the Lehman Brothers U.S. Corporate High Yield Index.
Q. What factors influenced the Fund's performance for the period ended March
31, 2005?
A: Along with BB and B rated bonds, the High Income Fund seeks to increase the
yield of the portfolio by also investing in the lower quality CCC rated
sector. In the past fiscal year, the Fund benefited from holding lower
quality bonds for a number of reasons. The higher yield of the portfolio
resulted in generous coupon income; and since the beginning of the credit
rally in the fourth quarter of 2002, spreads for the lowest quality bonds
contracted more than other sectors. This resulted in a strong principal
return for the Fund. Along with overall spread narrowing, favorable
security selection added to the Fund's return as portfolio companies, such
as Ardent Health care, tendered for their outstanding bonds at very
attractive levels.(1)
Q. How do you plan to position the Fund, based on market conditions?
A: We believe the economy continues to offer a favorable environment for High
Yield securities. Consumer demand has shown no signs of weakening and
capital spending has grown at a comfortable pace. The weak dollar has
dampened competition from exports and allowed companies in basic industries
to regain some pricing power. Over the past five quarters, gross domestic
product growth(2) has ranged from 3.0% to 4.5% -- a pace that is not too
slow and not too overheated, but just right for High Yield securities.
In addition, we believe most High Yield issuers will continue to build
healthier balance sheets and are not borrowing excessively to finance
overexpansion or expensive acquisitions. Both leverage and interest
coverage are improving for the average High Yield issuer. A robust market
has allowed companies to refinance their high interest rate short term
bonds and bank loans into longer maturity and lower coupon public debt.
Defaults also remain near their seven year low. Fundamental conditions --
for consumer demand, corporate financial health and access to liquidity --
remain quite positive.(1)
PORTFOLIO COMPOSITION (as of March 31, 2005)(1)
as a percentage of total investments
[PIE CHART]
Cash Equivalents 4.5%
Corporate Bonds 95.5%
(1) PORTFOLIO COMPOSITION IS SUBJECT TO CHANGE
(2) The Gross Domestic Product ("GDP") measures the market value of the goods
and services produced by labor and property in the United States.
7
HIGH INCOME FUND
================================================================================
GROWTH OF $10,000 INVESTMENT (as of March 31,2005)
[LINE GRAPH]
Lehman Brothers U.S. High Income Fund (T Shares]
Corporate High Yield Bond Index
10/03/01 10000 10000
12/01 10578 10342
10756 10354
10066 9785
9771 9257
12/02 10429 9997
11223 10576
12357 11499
12700 11792
12/03 13450 12578
13765 12799
13633 12752
14294 13234
12/04 14947 13876
03/05 14707 13727
[ ] High Income Fund (T Shares]
[ ] Lehman Brothers U.S. Corporate High Yield Bond Index
This chart assumes an initial hypothetical investment of $10,000 made on
10/3/01. Total return is based on net change in N.A.V. (net asset value)
assuming reinvestment of distributions. Returns shown on this page include
reinvestment of all dividends and other distributions.
The Funds performance is compared to the Lehman Brothers U.S. Corporate High
Yield Bond Index, a widely recognized, market value-weighted index that covers
the universe of fixed rate, non-investment grade debt. The index is unmanaged
and does not reflect the deduction of fees or taxes associated with a mutual
fund, such as investment management and fund accounting fees. Investors cannot
invest directly in an index, although they can invest in its underlying
securities.
<Table>
<Caption>
- ------------------------------------------------------------------------------------------------------------------------------------
AVERAGE ANNUAL TOTAL RETURNS AS OF 3/31/05 (%)
-----------------------------------------------------------
SINCE
HIGH INCOME FUND INCEPTION DATE 10 MONTH** 1 YEAR 3 YEAR 5 YEAR 10 YEAR INCEPTION
- ------------------------------------------------------------------------------------------------------------------------------------
A SHARES WITHOUT SALES CHARGE 10/27/03 9.17 6.91 -- -- -- 9.75
WITH SALES CHARGE* 5.04 2.88 -- -- -- 6.83
- ------------------------------------------------------------------------------------------------------------------------------------
L SHARES WITHOUT CDSC 05/04/94 8.69 6.54 9.11 6.65 4.63 4.73
WITH CDSC* 6.69 4.60 9.11 6.65 4.63 4.73
- ------------------------------------------------------------------------------------------------------------------------------------
T SHARES 10/03/01 9.31 7.25 9.86 -- -- 9.50
- ------------------------------------------------------------------------------------------------------------------------------------
LEHMAN BROTHERS U.S. CORPORATE 9.42 6.84 10.99 7.13 7.34 --
HIGH YIELD BOND INDEX
- ------------------------------------------------------------------------------------------------------------------------------------
</Table>
PAST PERFORMANCE DOES NOT GUARANTEE FUTURE RESULTS. THE PERFORMANCE DATA QUOTED
REPRESENTS PAST PERFORMANCE AND CURRENT RETURNS MAY BE LOWER OR HIGHER. TOTAL
RETURN FIGURES INCLUDE CHANGE IN SHARE PRICE, REINVESTMENT OF DIVIDENDS AND
CAPITAL GAINS AND DO NOT REFLECT TAXES THAT A SHAREHOLDER WOULD PAY ON FUND
DISTRIBUTIONS OR ON THE REDEMPTION OF FUND SHARES. THE INVESTMENT RETURN AND
PRINCIPAL VALUE WILL FLUCTUATE SO THAT AN INVESTOR'S SHARES, WHEN REDEEMED MAY
BE WORTH MORE OR LESS THAN THE ORIGINAL COST. FOR PERFORMANCE DATA CURRENT TO
THE MOST RECENT MONTH END, VISIT OUR WEBSITE AT WWW.STICLASSICFUNDS.COM.
*Class A Share performance reflects the maximum front-end sales charge of 3.75%
and Class L Shares reflect the maximum CDSC (contingent deferred sales charge)
of 2.00% in year one only.
**Aggregate total return
8
INVESTMENT GRADE BOND FUND
================================================================================
PORTFOLIO MANAGER(S)
- - Perry Troisi
- - John Talty, CFA
INVESTMENT CONCERNS
Mutual fund investing involves risk, including possible loss of principal. Bonds
offer a relatively stable level of income, although bond prices will fluctuate
providing the potential for principal gain or loss. Intermediate-term,
higher-quality bonds generally offer less risk than longer-term bonds and a
lower rate of return.
The Fund is subject to the risk that principal value reacts in opposition to the
movement of interests rates and that a rising interest rate environment
increases the risk of loss of principal.
MANAGEMENT DISCUSSION & ANALYSIS
Q. How did the Fund perform against its benchmark for the period ended March
31, 2005?
A: The Fund had excellent returns for the 10 month period from May 31, 2004 to
March 31, 2005 at 4.71% (T Shares) versus 4.11% for the Lehman Brothers
Government/Credit Bond Index. This period was a market environment where
credit quality continued to improve, demand for fixed income investments
was significantly greater than supply, and the yield curve flattened
dramatically as the Federal Reserve Board (the "Fed") pushed short term
rates higher while longer term rates actually fell. Performance was
positively impacted by strategies that included an overweight position in
corporates, a yield curve structure that took advantage of the flattening
yield curve, and exposure to Treasury Inflationary Protected Securities
("TIPS").
Q. What factors influenced the Fund's performance for the period ended March
31, 2005?
A: In the environment of tightening credit spreads, our over-weight in
corporates significantly impacted performance. Our yield curve structure
("barbell") also positively impacted performance, and our exposure to TIPS
benefited the portfolio.(1)
Q. How do you plan to position the Fund, based on market conditions?
A: We view the current environment as an opportunity to generate excess
returns defensively, and have taken action to limit our exposure to
expensive sectors and a yield curve which has already flattened. Spreads
across all major quality classes have tightened to levels not seen since
the mid- to late 1990's, and we now underweight corporates. With spreads as
tight as they are, the foregone coupon income is minimal while providing a
more compelling near-term risk/reward profile. With the yield curve having
flattened at a nearly unprecedented rate, we recently removed the yield
curve trade as further upside appears to be limited. Our most opportunistic
exposure continues to be found in TIPS, a sector where we still see value,
as inflation protection has now shifted to the forefront of the Fed's
focus.(1)
PORTFOLIO COMPOSITION (as of March 31, 2005)(1)
as a percentage of total investments
[PIE CHART]
U.S. Treasury Instruments 58.0%
Corporate Bonds 32.6%
GNMA 2.6%
FHLMC 2.0%
Cash Equivalents 2.0%
FNMA 1.5%
U.S. Agency Bonds 1.3%
(1) PORTFOLIO COMPOSITION IS SUBJECT TO CHANGE
9
INVESTMENT GRADE BOND FUND
================================================================================
GROWTH OF $10,000 INVESTMENT (as of March 31,2005)
Investment Grade Lehman Brothers U.S. Lehman Brothers U.S.
Bond Fund (T Shares] Government/Credit Bond Index Aggregate Bond Index
[PERFORMANCE GRAPH]
03/95 10000 10000 10000
10649 10611 10609
10853 10797 10818
12/95 11358 11284 11279
11093 11054 11079
11145 11080 11142
11341 11259 11348
11688 11548 11688
11587 11463 11623
12009 11867 12050
12430 12253 12450
12/97 12828 12596 12816
13023 12819 13016
13364 13140 13320
14025 13848 13883
14044 13754 13930
13876 13673 13861
13724 13502 13739
13798 13606 13832
12/99 13742 13543 13815
14112 13837 14120
14316 13604 14366
14728 13957 14799
15371 14433 15421
15862 15151 15889
15910 15207 15979
16668 15876 16716
12/01 16678 15741 16724
16599 15574 16739
17222 15806 17358
18203 16609 18153
18518 16909 18439
18823 17184 18695
19486 17663 19163
19388 17574 19135
12/03 19383 17535 19195
19980 18062 19706
19346 17434 19224
20034 18032 19839
20195 18251 20028
03/05 20060 18165 19932
This chart assumes an initial hypothetical investment of $10,000 made on
3/31/95. Total return is based on net change in N.A.V. (net asset value)
assuming reinvestment of distributions. Returns shown on this page include
reinvestment of all dividends and other distributions.
The Funds performance is compared to the Lehman Brothers U.S. Government/Credit
Bond Index a widely recognized composite index made up of the Lehman Brothers
U.S. Government Index and the Lehman Brothers U.S. Credit Index which include
U.S. Government, Treasury and agency securities, as well as high grade corporate
bonds. The Fund's performance is also compared to the Lehman Brothers U.S.
Aggregate Bond Index a widely recognized index of U.S. Treasury and agency
securities, corporate bond issues, mortgage-backed securities, asset-backed
securities and corporate mortgage-backed securities. The indices are unmanaged
and do not reflect the deduction of fees or taxes associated with a mutual fund,
such as investment management and fund accounting fees. Investors cannot invest
directly in an index, although they can invest in its underlying securities.
<Table>
<Caption>
AVERAGE ANNUAL TOTAL RETURNS AS OF 3/31/05 (%)
-------------------------------------------------------------
INVESTMENT GRADE BOND FUND INCEPTION DATE 10 MONTH** 1 YEAR 3 YEAR 5 YEAR 10 YEAR SINCE
INCEPTION
- ------------------------------------------------------------------------------------------------------------------------------------
A SHARES WITHOUT SALES CHARGE 06/11/92 4.24 0.06 4.80 5.16 5.72 5.56
WITH SALES CHARGE* 0.35 -3.69 3.49 4.36 5.32 5.25
- ------------------------------------------------------------------------------------------------------------------------------------
L SHARES WITHOUT CDSC 06/07/95 3.90 -0.44 4.32 4.63 -- 4.71
WITH CDSC* 1.90 -2.39 4.32 4.63 -- 4.71
- ------------------------------------------------------------------------------------------------------------------------------------
T SHARES 07/16/92 4.71 0.57 5.26 5.59 6.15 5.95
- ------------------------------------------------------------------------------------------------------------------------------------
LEHMAN BROTHERS U.S. GOVERNMENT/ 4.11 0.40 6.52 7.29 7.21 --
CREDIT BOND INDEX
- ------------------------------------------------------------------------------------------------------------------------------------
LEHMAN BROTHERS U.S. AGGREGATE 4.27 1.15 5.99 7.14 7.14 --
BOND INDEX
- ------------------------------------------------------------------------------------------------------------------------------------
</Table>
PAST PERFORMANCE DOES NOT GUARANTEE FUTURE RESULTS. THE PERFORMANCE DATA QUOTED
REPRESENTS PAST PERFORMANCE AND CURRENT RETURNS MAY BE LOWER OR HIGHER. TOTAL
RETURN FIGURES INCLUDE CHANGE IN SHARE PRICE, REINVESTMENT OF DIVIDENDS AND
CAPITAL GAINS AND DO NOT REFLECT TAXES THAT A SHAREHOLDER WOULD PAY ON FUND
DISTRIBUTIONS OR ON THE REDEMPTION OF FUND SHARES. THE INVESTMENT RETURN AND
PRINCIPAL VALUE WILL FLUCTUATE SO THAT AN INVESTOR'S SHARES, WHEN REDEEMED MAY
BE WORTH MORE OR LESS THAN THE ORIGINAL COST. FOR PERFORMANCE DATA CURRENT TO
THE MOST RECENT MONTH END, VISIT OUR WEBSITE AT WWW.STICLASSICFUNDS.COM.
*Class A Share performance reflects the maximum front-end sales charge of 3.75%
and Class L Shares reflect the maximum CDSC (contingent deferred sales charge)
of 2.00% in year one only.
** Aggregate total return
10
INVESTMENT GRADE TAX-EXEMPT BOND FUND
================================================================================
PORTFOLIO MANAGER(S)
- - Ronald Schwartz, CFA, CFP
INVESTMENT CONCERNS
Mutual fund investing involves risk, including possible loss of principal. Bonds
offer a relatively stable level of income, although bond prices will fluctuate
providing the potential for principal gain or loss. Intermediate-term,
higher-quality bonds generally offer less risk than longer-term bonds and a
lower rate of return.
The Fund's income may be subject to certain state and local taxes and,
depending on your tax status, the federal alternative minimum tax.
The Fund is subject to the risk that principal value reacts in opposition to the
movement of interests rates and that a rising interest rate environment
increases the risk of loss of principal.
MANAGEMENT DISCUSSION & ANALYSIS
Q. How did the Fund perform against its benchmark for the period ended
March 31, 2005?
A: For the 10 months ended March 31, 2005, the Fund's produced a total return
of 3.74% (T Shares) versus a total return of 2.84% for the Lehman Brothers
5 Year Municipal Bond Fund. The Fund's "barbell" yield curve strategy
contributed to its outperformance. The Fund maintained an overweight of 0 to
4-year and 15-year and longer paper. Within the latter maturity range, the
period witnessed exposure to the 15-year sector reduced while exposure to the
long bond sector was increased. The Federal Open Market Committee commenced
its first tightening cycle in 5 years by raising the federal funds rate from
1% to 2.75% during the period. The 5-year generic AAA rated municipal bond
yields increased 14 basis points (0.14%) over the 10 months, while the 10-
and 30-year yields declined 9 and 41 basis points (0.09% and 0.41%),
respectively. The 2-year to 30-year municipal bond yield curve flattened 116
basis points (1.16%)to 183 basis points (1.83%) of slope.
Q. What factors influenced the Fund's performance for the period ended
March 31, 2005?
A: The primary factor behind the Fund's outperformance was its high relative
allocation to callable bonds with 5% or greater coupons and final maturities
exceeding 15 years.(1)
Q. How do you plan to position the Fund, based on market conditions?
A: The Fund continues to favor premium bonds (prices greater than par) for
their income benefit and relative price stability. We believe all activity
will occur within an investment grade construct and the average credit
quality of Fund holdings should remain high. The current yield curve
distribution remains appropriate.(1)
CREDIT QUALITY (as of March 31, 2005)(1)
as a percentage of total investments
[PIE CHART]
Not Rated 7.4%
A 0.7%
AA 17.8%
AAA 74.1%
(1)PORTFOLIO COMPOSITION IS SUBJECT TO CHANGE
11
INVESTMENT GRADE TAX-EXEMPT BOND FUND
================================================================================
GROWTH OF $10,000 INVESTMENT (as of March 31,2005)
[PERFORMANCE GRAPH]
Investment Grade Tax-Exempt Lehman Brothers 5 Year
Bond Fund(T Shares) Municipal Bond Index
03/95 10000 10000
10237 10268
10499 10513
12/95 10838 10729
10867 10729
10937 10787
11165 10965
11437 11182
11423 11179
11756 11452
12030 11697
12/97 12328 11895
12463 12033
12661 12168
13098 12487
13198 12590
13271 12721
13072 12563
13102 12681
12/99 13164 12682
13488 12834
13694 13036
13964 13293
14595 13661
14940 14048
14991 14186
15371 14576
12/01 15400 14509
15581 14593
16083 15194
16853 15721
16998 15854
17176 16031
17573 16322
17590 16486
12/03 17747 16509
17958 16719
17658 16360
18218 16823
18367 16958
03/05 18236 16763
This chart assumes an initial hypothetical investment of $10,000 made on
3/31/95. Total return is based on net change in N.A.V. (net asset value)
assuming reinvestment of distributions. Returns shown on this page include
reinvestment of all dividends and other distributions.
The Funds performance is compared to the Lehman Brothers 5 Year Municipal Bond
Index a widely recognized index of intermediate investment grade tax-exempt
bonds. The index includes general obligation bonds, revenue bonds, insured bonds
and prefunded bonds with maturities between 4 and 6 years. The index is
unmanaged and does not reflect the deduction of fees or taxes associated with a
mutual fund, such as investment management and fund accounting fees. Investors
cannot invest directly in an index, although they can invest in its underlying
securities.
<Table>
<Caption>
AVERAGE ANNUAL TOTAL RETURNS AS OF 3/31/05 (%)
-----------------------------------------------------------
INVESTMENT GRADE INCEPTION DATE 10 MONTH** 1 YEAR 3 YEAR 5 YEAR 10 YEAR SINCE
TAX-EXEMPT BOND FUND INCEPTION
- ------------------------------------------------------------------------------------------------------------------------------------
A SHARES WITHOUT SALES CHARGE 06/09/92 3.28 1.12 4.97 5.78 5.76 6.35
WITH SALES CHARGE* -0.62 -2.70 3.65 4.98 5.36 6.03
- ------------------------------------------------------------------------------------------------------------------------------------
L SHARES WITHOUT CDSC 06/01/95 2.86 0.62 4.44 5.26 -- 5.07
WITH CDSC* 0.86 -1.33 4.44 5.26 -- 5.07
- ------------------------------------------------------------------------------------------------------------------------------------
T SHARES 10/21/93 3.74 1.55 5.38 6.22 6.19 5.95
- ------------------------------------------------------------------------------------------------------------------------------------
LEHMAN BROTHERS 5 YEAR 2.84 0.26 4.73 5.49 5.30 --
MUNICIPAL BOND INDEX
- ------------------------------------------------------------------------------------------------------------------------------------
</Table>
PAST PERFORMANCE DOES NOT GUARANTEE FUTURE RESULTS. THE PERFORMANCE DATA QUOTED
REPRESENTS PAST PERFORMANCE AND CURRENT RETURNS MAY BE LOWER OR HIGHER. TOTAL
RETURN FIGURES INCLUDE CHANGE IN SHARE PRICE, REINVESTMENT OF DIVIDENDS AND
CAPITAL GAINS AND DO NOT REFLECT TAXES THAT A SHAREHOLDER WOULD PAY ON FUND
DISTRIBUTIONS OR ON THE REDEMPTION OF FUND SHARES. THE INVESTMENT RETURN AND
PRINCIPAL VALUE WILL FLUCTUATE SO THAT AN INVESTOR'S SHARES, WHEN REDEEMED MAY
BE WORTH MORE OR LESS THAN THE ORIGINAL COST. FOR PERFORMANCE DATA CURRENT TO
THE MOST RECENT MONTH END, VISIT OUR WEBSITE AT WWW.STICLASSICFUNDS.COM.
*Class A Share performance reflects the maximum front-end sales charge of 3.75%
and Class L Shares reflect the maximum CDSC (contingent deferred sales charge)
of 2.00% in year one only.
**Aggregate total return
12
LIMITED-TERM FEDERAL MORTGAGE SECURITIES FUND
================================================================================
PORTFOLIO MANAGER(S)
- - Joseph Calabrese, CFA
- - John Talty, CFA
INVESTMENT CONCERNS
Mutual fund investing involves risk, including possible loss of principal. Bonds
offer a relatively stable level of income, although bond prices will fluctuate
providing the potential for principal gain or loss. Intermediate-term,
higher-quality bonds generally offer less risk than longer-term bonds and a
lower rate of return.
U.S. Government guarantees apply only to the underlying securities of the
Fund's portfolio and not the Fund's shares.
The Fund is subject to the risk that principal value reacts in opposition to the
movement of interests rates and that a rising interest rate environment
increases the risk of loss of principal.
MANAGEMENT DISCUSSION & ANALYSIS
Q. How did the Fund perform against its benchmark for the period ended
March 31, 2005
A: The Fund outperformed its benchmark by 26 basis points (0.26%) for the first
quarter of 2005; returning -0.30% versus -0.56% for the index. For the
past 10 months, the Fund returned 2.26% (T Shares) compared to a 1.15% and
0.96% for the Fund's benchmarks the Merrill Lynch 1-5 Year AAA U.S.
Treasury/Agencies Index and the Merrill Lynch 1-5 Year U. S. Treasuries
Index.
Q. What factors influenced the Fund's performance for the period ended March
31, 2005?
A: Higher coupon mortgages, which increase portfolio income and act as a
cushion against rising interest rates, were added. Proceeds came from
principal paydowns and the sale of lower coupon mortgages. Higher coupon 30
year mortgages preserved performance with greater levels of income
protecting price depreciation relative to shorter duration production.
Underweighting short Treasury and Agency debentures in a weakening bond
market also supported performance.(1)
Q. How do you plan to position the Fund, based on market conditions?
A: At present, our overriding concern is that certain market sectors are
exhibiting complacency at very expensive levels. In our estimation, a single
negative event could cause a market dislocation. Consequently, we think it
is prudent to continue to methodically decrease risk exposure and wait for
more attractive levels to surface.(1)
We believe current market conditions are an anomaly. This period
represents one of the rare times superior total returns could be achieved by
being pool specific and coupon selective. The net supply of Mortgages has
been near zero adding further bias to an already rich market. While our
tactical allocation is tailored to the benchmark, we will continue to be
cautious in our security selection.(1)
PORTFOLIO COMPOSITION (as of March 31, 2005)(1)
as a percentage of total investments
[PIE CHART]
Cash Equivalents 2.2%
FNMA 65.3%
FHLMC 24.2%
GNMA 8.3%
(1)PORTFOLIO COMPOSITION IS SUBJECT TO CHANGE
13
LIMITED-TERM FEDERAL MORTGAGE SECURITIES FUND
================================================================================
GROWTH OF $10,000 INVESTMENT (as of March 31,2005)
[PERFORMANCE GRAPH]
Limited-Term Federal Merrill Lynch 1-5 Year AAA Merrill Lynch 1-5 Year
Mortgage Securities AAA Treasuries/Agencies U.S. Treasuries
Fund (T Shares) Index Index
03/95 10000 10000 10000
10352 10396 10399
10515 10553 10555
12/95 10778 10860 10866
10814 10851 10852
10871 10939 10938
11053 11123 11122
11265 11353 11352
11302 11395 11392
11572 11674 11672
11812 11935 11933
12/97 12025 12160 12159
12190 12345 12343
12366 12547 12546
12806 13026 13039
12856 13092 13101
12935 13130 13132
12896 13166 13168
13009 13320 13327
12/99 13017 13367 13368
13148 13538 13550
13357 13781 13792
13709 14111 14110
14135 14571 14555
14426 14995 14975
14531 15130 15098
15164 15756 15720
12/01 15182 15813 15772
15278 15806 15749
15688 16293 16223
16137 16844 16813
16320 17006 16950
16475 17132 17067
16663 17325 17255
16507 17365 17301
12/03 16552 17371 17299
16834 17633 17563
16548 17341 17270
16856 17610 17528
16943 17623 17526
03/05 16893 17523 17422
This chart assumes an initial hypothetical investment of $10,000 made on
3/31/95. Total return is based on net change in N.A.V. (net asset value)
assuming reinvestment of distributions. Returns shown on this page include
reinvestment of all dividends and other distributions.
The Funds performance is compared to the Merrill Lynch 1-5 Year AAA U.S.
Treasuries/Agencies Index and the Merrill Lynch 1-5 Year U.S. Treasuries Index.
The Merrill Lynch 1-5 Year AAA U.S. Treasuries/Agencies Index tracks the
performance of U.S. government and agency bonds that have a minimum issue size
of $150 million. The Merrill Lynch 1-5 Year U.S. Treasuries Index is a widely
recognized, capitalization weighted index of U.S. Treasury securities with
maturities of one year or greater and no more than 5 years. The indices are
unmanaged and do not reflect the deduction of fees or taxes associated with a
mutual fund, such as investment management and fund accounting fees. Investors
cannot invest directly in an index, although they can invest in its underlying
securities.
<Table>
<Caption>
AVERAGE ANNUAL TOTAL RETURNS AS OF 3/31/05 (%)
-------------------------------------------------------------
LIMITED-TERM FEDERAL MORTGAGE INCEPTION DATE 10 MONTH** 1 YEAR 3 YEAR 5 YEAR 10 YEAR SINCE
SECURITIES FUND INCEPTION
- ------------------------------------------------------------------------------------------------------------------------------------
A SHARES WITHOUT SALES CHARGE 07/18/94 2.07 0.11 3.15 4.85 5.12 5.19
WITH SALES CHARGE* -0.48 -2.42 2.28 4.32 4.86 4.94
- ------------------------------------------------------------------------------------------------------------------------------------
L SHARES WITHOUT CDSC 06/07/95 1.81 -0.29 2.80 4.53 -- 4.53
WITH CDSC* -0.17 -2.22 2.80 4.53 -- 4.53
- ------------------------------------------------------------------------------------------------------------------------------------
T SHARES 06/06/94 2.26 0.35 3.41 5.14 5.38 5.38
- ------------------------------------------------------------------------------------------------------------------------------------
MERRILL LYNCH 1-5 YEAR AAA 1.15 -0.62 3.50 5.29 5.77 --
U.S. TREASURY/AGENCIES INDEX
- ------------------------------------------------------------------------------------------------------------------------------------
MERRILL LYNCH 1-5 0.96 -0.80 3.42 5.16 5.71 --
YEAR U. S. TREASURIES
INDEX
- ------------------------------------------------------------------------------------------------------------------------------------
</Table>
PAST PERFORMANCE DOES NOT GUARANTEE FUTURE RESULTS. THE PERFORMANCE DATA QUOTED
REPRESENTS PAST PERFORMANCE AND CURRENT RETURNS MAY BE LOWER OR HIGHER. TOTAL
RETURN FIGURES INCLUDE CHANGE IN SHARE PRICE, REINVESTMENT OF DIVIDENDS AND
CAPITAL GAINS AND DO NOT REFLECT TAXES THAT A SHAREHOLDER WOULD PAY ON FUND
DISTRIBUTIONS OR ON THE REDEMPTION OF FUND SHARES. THE INVESTMENT RETURN AND
PRINCIPAL VALUE WILL FLUCTUATE SO THAT AN INVESTOR'S SHARES, WHEN REDEEMED MAY
BE WORTH MORE OR LESS THAN THE ORIGINAL COST. FOR PERFORMANCE DATA CURRENT TO
THE MOST RECENT MONTH END, VISIT OUR WEBSITE AT WWW.STICLASSICFUNDS.COM.
*Class A Share performance reflects the maximum front-end sales charge of
2.50% and Class L Shares reflect the maximum CDSC (contingent deferred sales
charge) of 2.00% in year one only.
**Aggregate total return
14
MARYLAND MUNICIPAL BOND FUND
================================================================================
PORTFOLIO MANAGER(S)
- - George E. Calvert, Jr.
INVESTMENT CONCERNS
Mutual fund investing involves risk, including possible loss of principal. Bonds
offer a relatively stable level of income, although bond prices will fluctuate
providing the potential for principal gain or loss. Intermediate-term,
higher-quality bonds generally offer less risk than longer-term bonds and a
lower rate of return.
The geographical concentration of portfolio holdings in this fund may involve
increased risk.
The Fund's income may be subject to certain state and local taxes and,
depending on your tax status, the federal alternative minimum tax.
The Fund is subject to the risk that principal value reacts in opposition to the
movement of interests rates and that a rising interest rate environment
increases the risk of loss of principal.
MANAGEMENT DISCUSSION & ANALYSIS
Q. How did the Fund perform against its benchmark for the period ended
March 31, 2005?
A: For the 10 months ended March 31, 2005, the Fund underperformed the
Lehman Brothers 10 Year Municipal Bond Index, producing a total return of
3.87% (T Shares) compared to 4.65% for the benchmark. The Fund has been
positioned defensively since the middle of 2003, expecting rates to rise
across the curve at a much more rapid pace than has occurred while the
Federal Reserve was tightening monetary policy. More specifically, the Fund
was under represented, significantly, in the maturities range 20 years and
longer. For this period the longest bonds generated exceptional returns
combining income and price appreciation while short bonds suffered actual
price declines as interest rates rose and the curve flattened.
Q. What factors influenced the Fund's performance for the period ended
March 31, 2005?
A: There were no specific investments that influenced performance. Yield curve
positioning was more critical over the past 10 months than was credit
quality or other factors. The Fund's high grade holdings in the intermediate
part of the curve lagged the returns of the long end. When combined with the
Fund's under weighting in the long maturities, this led to overall
underperformance for the period.(1)
Q. How do you plan to position the Fund, based on market conditions?
A: The Fund will add longer duration bonds to the portfolio with coupons of 5%
or higher, while maintaining portfolio duration at a level that we consider
to be at or below the peer group average. We also plan to make adjustments
more quickly in the future if our exposure to various maturity ranges on the
curve varies significantly from market weightings as it did the past two
years, assuming an adequate supply of Maryland bonds, which trade at
aggressive levels and good values relative to the national market, are
difficult to find.(1)
CREDIT QUALITY (as of March 31, 2005)(1)
as a percentage of total investments
[PIE CHART]
Cash Equivalents 4.4%
Not Rated 1.8%
A 18.3%
AA 36.7%
AAA 32.3%
BBB 6.4%
(1)PORTFOLIO COMPOSITION IS SUBJECT TO CHANGE
15
MARYLAND MUNICIPAL BOND FUND
================================================================================
GROWTH OF $10,000 INVESTMENT (as of March 31,2005)
[PERFORMANCE GRAPH]
Maryland Municipal Bond Lehman Brothers 10 Year
Fund (T Shares] Municipal Bond Index
03/01/96 10000 10000
9619 9906
9784 10104
10003 10392
9933 10390
10289 10732
10606 11065
12/97 10882 11352
10983 11469
11118 11643
11467 12040
11520 12119
11565 12188
11452 11909
11278 11985
12/99 11137 11968
11477 12247
11611 12442
11911 12751
12396 13256
12656 13564
12733 13623
13069 14026
12/01 12959 13868
13024 14037
13530 14609
14104 15354
14113 15279
14249 15467
14598 15952
14600 15932
12/03 14708 16150
14902 16409
14592 16019
15051 16682
15198 16820
03/05 15114 16708
This chart assumes an initial hypothetical investment of $10,000 made on 3/1/96.
Total return is based on net change in N.A.V. (net asset value) assuming
reinvestment of distributions. Returns shown on this page include reinvestment
of all dividends and other distributions.
The Funds performance is compared to the Lehman Brothers 10 Year Municipal Bond
Index a widely recognized index of long-term investment grade tax-exempt bonds.
The index includes general obligation bonds, revenue bonds, insured bonds and
prefunded bonds with maturities between 8 and 12 years. The index is unmanaged
and does not reflect the deduction of fees or taxes associated with a mutual
fund, such as investment management and fund accounting fees. Investors cannot
invest directly in an index, although they can invest in its underlying
securities.
<Table>
<Caption>
Average Annual Total Returns as of 3/31/05 (%)
-------------------------------------------------------
MARYLAND MUNICIPAL BOND FUND INCEPTION DATE 10 MONTH** 1 YEAR 3 YEAR 5 YEAR SINCE
INCEPTION
- ------------------------------------------------------------------------------------------------------------------------------------
L SHARES WITHOUT SALES CHARGE 04/25/96 3.03 0.45 4.09 4.68 4.29
WITH CDSC* 1.03 -1.49 4.09 4.68 4.29
- ------------------------------------------------------------------------------------------------------------------------------------
T SHARES 03/01/96 3.87 1.42 5.09 5.66 4.65
- ------------------------------------------------------------------------------------------------------------------------------------
LEHMAN BROTHERS 10 YEAR 4.65 1.82 5.98 6.41 --
MUNICIPAL BOND INDEX
- ------------------------------------------------------------------------------------------------------------------------------------
</Table>
PAST PERFORMANCE DOES NOT GUARANTEE FUTURE RESULTS. THE PERFORMANCE DATA QUOTED
REPRESENTS PAST PERFORMANCE AND CURRENT RETURNS MAY BE LOWER OR HIGHER. TOTAL
RETURN FIGURES INCLUDE CHANGE IN SHARE PRICE, REINVESTMENT OF DIVIDENDS AND
CAPITAL GAINS AND DO NOT REFLECT TAXES THAT A SHAREHOLDER WOULD PAY ON FUND
DISTRIBUTIONS OR ON THE REDEMPTION OF FUND SHARES. THE INVESTMENT RETURN AND
PRINCIPAL VALUE WILL FLUCTUATE SO THAT AN INVESTOR'S SHARES, WHEN REDEEMED MAY
BE WORTH MORE OR LESS THAN THE ORIGINAL COST. FOR PERFORMANCE DATA CURRENT TO
THE MOST RECENT MONTH END, VISIT OUR WEBSITE AT WWW.STICLASSICFUNDS.COM.
*Class L Share performance reflects the maximum CDSC (contingent deferred sales
charge) of 2.00% in year one only.
**Aggregate total return
16
NORTH CAROLINA TAX-EXEMPT BOND FUND
================================================================================
PORTFOLIO MANAGER(S)
- - Chris Carter, CFA
INVESTMENT CONCERNS
Mutual fund investing involves risk, including possible loss of principal. Bonds
offer a relatively stable level of income, although bond prices will fluctuate
providing the potential for principal gain or loss. Intermediate-term,
higher-quality bonds generally offer less risk than longer-term bonds and a
lower rate of return.
The geographical concentration of portfolio holdings in this fund may involve
increased risk.
The Fund's income may be subject to certain state and local taxes and,
depending on your tax status, the federal alternative minimum tax.
The Fund is subject to the risk that principal value reacts in opposition to the
movement of interests rates and that a rising interest rate environment
increases the risk of loss of principal.
MANAGEMENT DISCUSSION & ANALYSIS
Q. How did the Fund perform against its benchmark for the period ended
March 31, 2005?
A: For the 10 month period ended March 31, 2005, the Fund produced a total
return of 3.97% (T Shares) compared to a 4.65% total return for the Fund's
benchmark, the Lehman Brothers 10 Year Municipal Bond Index.
Q. What factors influenced the Fund's performance for the period ended
March 31, 2005?
A: The North Carolina Tax-Exempt Bond commenced operations on March 21, 2005,
and therefore the performance history is that of the prior management
company.(+)
Q. How do you plan to position the Fund, based on market conditions?
A: The Fund entered January 2005 with more than 60% of its assets invested in
bonds with final maturities ranging from 8 to 16 years. The coming year, we
will reduce this allocation and increase exposure to 15-year and longer
paper. The Fund will favor premium bonds (prices greater than par) for their
income benefit and relative price stability. We believe all activity will
occur within an investment grade construct and the average credit quality of
Fund holdings should remain high.
CREDIT QUALITY BREAKDOWN (as of March 31, 2005)(1)
as a percentage of total investments
[PIE CHART]
Cash Equivalents 1.7%
A-1 11.3%
AA 20.3%
AAA 65.4%
BBB 1.3%
(1)PORTFOLIO COMPOSITION IS SUBJECT TO CHANGE
17
NORTH CAROLINA TAX-EXEMPT BOND FUND
================================================================================
GROWTH OF $10,000 INVESTMENT (as of March 31,2005)
[PERFORMANCE GRAPH]
North Carolina Tax-Exempt Lehman Brothers 10 Year
Bond (T Shares] Municipal Bond Index
01/08/04 10000 10000
10219 10202
03/04 10161 10133
9880 9847
9886 9848
06/04 9919 9872
10055 10018
10275 10226
09/04 10330 10282
10412 10359
10294 10232
12/04 10415 10349
10503 10435
10437 10380
03/05 10346 10239
This chart assumes an initial hypothetical investment of $10,000 made on 1/8/04.
Total return is based on net change in N.A.V. (net asset value) assuming
reinvestment of distributions. Returns shown on this page include reinvestment
of all dividends and other distributions.
The Funds performance is compared to the Lehman Brothers 10 Year Municipal Bond
Index a widely recognized index of long-term investment grade tax-exempt bonds.
The index includes general obligation bonds, revenue bonds, insured bonds and
prefunded bonds with maturities between 8 and 12 years. The index is unmanaged
and does not reflect the deduction of fees or taxes associated with a mutual
fund, such as investment management and fund accounting fees. Investors cannot
invest directly in an index, although they can invest in its underlying
securities.
<Table>
<Caption>
AVERAGE ANNUAL TOTAL RETURNS AS OF 3/31/05 (%)
----------------------------------------------------
NORTH CAROLINA SINCE
TAX-EXEMPT BOND FUND INCEPTION DATE* 10 MONTH** 1 YEAR INCEPTION
- ------------------------------------------------------------------------------------------------------------------------------------
A SHARES WITHOUT SALES CHARGE 01/08/04 -0.89 1.08 1.97
WITH SALES CHARGE* -4.25 -2.68 -1.16
- ------------------------------------------------------------------------------------------------------------------------------------
L SHARES WITHOUT CDSC 01/08/04 -0.90 1.08 -1.04
WITH CDSC* -2.48 -0.88 -3.00
- ------------------------------------------------------------------------------------------------------------------------------------
T SHARES 01/08/04 3.97 1.05 1.94
- ------------------------------------------------------------------------------------------------------------------------------------
LEHMAN BROTHERS 10 YEAR 4.65 1.82 --
MUNICIPAL BOND INDEX
- ------------------------------------------------------------------------------------------------------------------------------------
</Table>
PAST PERFORMANCE DOES NOT GUARANTEE FUTURE RESULTS. THE PERFORMANCE DATA QUOTED
REPRESENTS PAST PERFORMANCE AND CURRENT RETURNS MAY BE LOWER OR HIGHER. TOTAL
RETURN FIGURES INCLUDE CHANGE IN SHARE PRICE, REINVESTMENT OF DIVIDENDS AND
CAPITAL GAINS AND DO NOT REFLECT TAXES THAT A SHAREHOLDER WOULD PAY ON FUND
DISTRIBUTIONS OR ON THE REDEMPTION OF FUND SHARES. THE INVESTMENT RETURN AND
PRINCIPAL VALUE WILL FLUCTUATE SO THAT AN INVESTOR'S SHARES, WHEN REDEEMED MAY
BE WORTH MORE OR LESS THAN THE ORIGINAL COST. FOR PERFORMANCE DATA CURRENT TO
THE MOST RECENT MONTH END, VISIT OUR WEBSITE AT WWW.STICLASSICFUNDS.COM.
*Class A Share performance reflects the maximum front-end sales charge of 3.75%
and Class L Shares reflect the maximum CDSC (contingent deferred sales charge)
of 2.00% in year one only.
** Aggregate total return
(+)The Fund began operations on March 21, 2005. Performance from January 8, 2004
to March 21, 2005 is that of the CCMI Tax-Exempt North Carolina Fund, the
Fund's predecessor.
18
SHORT-TERM BOND FUND
================================================================================
PORTFOLIO MANAGER(S)
- - Rob W. Corner
- - H. Rick Nelson
INVESTMENT CONCERNS
Mutual fund investing involves risk, including possible loss of principal. Bonds
offer a relatively stable level of income, although bond prices will fluctuate
providing the potential for principal gain or loss. Intermediate-term,
higher-quality bonds generally offer less risk than longer-term bonds and a
lower rate of return.
The Fund is subject to the risk that principal value reacts in opposition to
the movement of interests rates and that a rising interest rate environment
increases the risk of loss of principal.
MANAGEMENT DISCUSSION & ANALYSIS
Q. How did the Fund perform against its benchmark for the period ended
March 31, 2005?
A: The Fund performed in line with expectations and slightly below its
benchmark index. The return for the 10 month period ended March 31, 2005 was
0.96% (T Shares). This compared to a return of 1.01% for the Citigroup 1-3
Year Government/Credit Index.
The 10 month period ended March 31, 2005 was not an ideal environment for
short-term bonds as the Fed embarked on its first tightening campaign since
they last raised rates in 1999-2000. Beginning on June 30, 2004, the Federal
Open Market Committee ("FOMC") launched a series of rate increases at each
FOMC meeting increasing the fed funds rate up by 175 basis points (1.75%) to
2.75% from 1.00%. As a result, short-term bond yields also rose. For
example, the two year U.S. Treasury note jumped 125 basis points (1.25%) to
3.79% from 2.54% during the same period.
The economic environment during this period has been characterized by
accommodative monetary policy, increased inflation concerns, moderate
economic growth, and improved labor market conditions. The rise in rates by
the Fed has been an attempt to remove monetary policy accommodation, to
control economic growth, and contain inflation expectations.
Q. What factors influenced the Fund's performance for the period ended
March 31, 2005?
A: The Fund maintained a defensive duration over the last 10 months as interest
moved higher by over 100 basis points (1.00%). While the rise in rates
caused price depreciation and generally detracted from performance of the
Fund, a longer duration would have detracted even more from performance in a
rising rate environment.(1)
Our sector allocations remained relatively constant through the time period
as we emphasized yield through corporate bonds, asset backed securities, and
mortgage backed securities. The most notable changes to allocation was a
reduction to corporate bonds and an increase in mortgage backed securities.
We sold out of GM bonds during the first quarter of 2005 which proved
beneficial as the auto sector has been downgraded by the rating services.(1)
The allocation to "spread" sectors helped performance as yield/income was the
primary source of returns as rates rose. U.S. Agency bonds and mortgage
backed securities benefited from reduced supply, greater demand (including
overseas), and lower volatility.(1)
The Fund also owns some securities longer then three years which caused the
Fund to be invested in a "barbell" fashion (longer securities and shorter
securities and less in the middle). This also helped the returns as the two
to five year part of the curve flattened by 86 basis points (Q.86%).(1)
Q. How do you plan to position the Fund, based on market conditions?
A: In the short-term we plan to maintain our conservative duration theme as the
Fed is expected to continue raising rates. However, we may look to increase
duration at some point in the next year as the Fed approaches the end of
their tightening cycle.
We are focusing more on quality and have reduced our allocation "BBB"
credits as credit spreads have narrowed to extreme levels and a recent spate
of high profile events (i.e. GM, AIG, KMG) have heightened our concern over
event risk.(1)
PORTFOLIO COMPOSITION (as of March 31, 2005)(1)
as a percentage of total investments
[PIE CHART]
Cash Equivalents 0.1%
Corporate Bonds 35.4%
U.S. Treasury Instruments 18.9%
FNMA 16.6%
FHLMC 10.7%
Asset Backed Securities 9.5%
U.S. Agency Bonds 8.8%
(1)PORTFOLIO COMPOSITION IS SUBJECT TO CHANGE
19
SHORT-TERM BOND FUND
================================================================================
GROWTH OF $10,000 INVESTMENT (as of March 31,2005)
[PERFORMANCE GRAPH]
Short-Term Bond Citigroup 1-3 Year
Fund (T Shares) Government/Credit Index
[PLOT POINTS MISSING]
This chart assumes an initial hypothetical investment of $10,000 made on
3/31/95. Total return is based on net change in N.A.V. (net asset value)
assuming reinvestment of distributions. Returns shown on this page include
reinvestment of all dividends and other distributions.
The Funds performance is compared to the Citigroup 1-3 Year Government/Credit
Index a widely recognized index of U.S. Treasury securities, government agency
obligations, and corporate debt securities rated at least investment grade
(BBB). The securities in the index have maturities of one year or greater and
less than three years. The index is unmanaged and does not reflect the deduction
of fees or taxes associated with a mutual fund, such as investment management
and fund accounting fees. Investors cannot invest directly in an index, although
they can invest in its underlying securities.
<Table>
<Caption>
AVERAGE ANNUAL TOTAL RETURNS AS OF 3/31/05 (%)
---------------------------------------------------------
SINCE
SHORT-TERM BOND FUND INCEPTION DATE 10 MONTH** LYEAR 3 YEAR 5 YEAR 10 YEAR INCEPTION
- ------------------------------------------------------------------------------------------------------------------------------------
A SHARES WITHOUT SALES CHARGE 03/22/93 0.67 -0.40 1.87 3.72 4.54 4.27
WITH SALES CHARGE* -1.33 -2.35 1.20 3.29 4.33 4.09
- ------------------------------------------------------------------------------------------------------------------------------------
L SHARES WITHOUT CDSC 06/20/95 0.46 -0.67 1.55 3.35 -- 3.91
WITH CDSC* -1.51 -2.62 1.55 3.35 -- 3.91
- ------------------------------------------------------------------------------------------------------------------------------------
T SHARES WITHOUT LOAD 03/15/93 0.96 -0.09 2.13 3.92 4.74 4.51
- ------------------------------------------------------------------------------------------------------------------------------------
CITIGROUP 1-3 YEAR GOVERNMENT/CREDIT INDEX 1.01 -0.13 3.36 5.13 5.63 --
- ------------------------------------------------------------------------------------------------------------------------------------
</Table>
PAST PERFORMANCE DOES NOT GUARANTEE FUTURE RESULTS. THE PERFORMANCE DATA QUOTED
REPRESENTS PAST PERFORMANCE AND CURRENT RETURNS MAY BE LOWER OR HIGHER. TOTAL
RETURN FIGURES INCLUDE CHANGE IN SHARE PRICE, REINVESTMENT OF DIVIDENDS AND
CAPITAL GAINS AND DO NOT REFLECT TAXES THAT A SHAREHOLDER WOULD PAY ON FUND
DISTRIBUTIONS OR ON THE REDEMPTION OF FUND SHARES. THE INVESTMENT RETURN AND
PRINCIPAL VALUE WILL FLUCTUATE SO THAT AN INVESTOR'S SHARES, WHEN REDEEMED MAY
BE WORTH MORE OR LESS THAN THE ORIGINAL COST. FOR PERFORMANCE DATA CURRENT TO
THE MOST RECENT MONTH END, VISIT OUR WEBSITE AT WWW.STICLASSICFUNDS.COM.
* Class A Share performance reflects the maximum front-end sales charge of'2.00%
and Class L Shares reflect the maximum CDSC (contingent deferred sales charge)
of'2.00% in year one only.
** Aggregate total return
20
SHORT-TERM U.S. TREASURY SECURITIES FUND
================================================================================
PORTFOLIO MANAGER(S)
- H. Rick Nelson
- Chad Stephens
INVESTMENT CONCERNS
Mutual fund investing involves risk, including possible loss of principal. Bonds
offer a relatively stable level of income, although bond prices will fluctuate
providing the potential for principal gain or loss. Intermediate-term,
higher-quality bonds generally offer less risk than longer-term bonds and a
lower rate of return.
U.S. Government guarantees apply only to the underlying securities of the Fund's
portfolio and not the funds shares.
The Fund is subject to the risk that principal value reacts in opposition to the
movement of interests rates and that a rising interest rate environment
increases the risk of loss of principal.
MANAGEMENT DISCUSSION & ANALYSIS
Q. HOW DID THE FUND PERFORM AGAINST ITS BENCHMARK FOR THE PERIOD ENDED MARCH 31,
2005?
A: The Fund produced a total return of 0.35% (T Shares) for the 10 month period
ended March 31, 2005. This compared to a return of 0.71% and 1.45% for the
Citigroup 1-3 Year Treasury Index and Citigroup 6 Month Treasury Bill Index.
The 10 month period ended March 31, 2005 was not an ideal environment for
short-term bonds as the Federal Reserve Board (the "Fed") embarked on its
first tightening campaign since they last raised rates in 1999-2000.
Beginning on June 30, 2004, the Federal Open Market Committee ("FOMC")
launched a series of rate increases at each FOMC meeting pushing the fed
funds rate up by 175 basis points (1.75%) to 2.75% from 1.00%. As a result,
short-term bond yields also rose. For example, the two year U.S. Treasury
note jumped 125 basis points (1.25%) to 3.79% from 2.54% during the same
period.
The economic environment during this period has been characterized by
accommodative monetary policy, increased inflation concerns, moderate
economic growth, and improved labor market conditions. The rise in rates by
the Fed has been an attempt to remove monetary policy accommodation, to
control economic growth, and contain inflation expectations.
Q. WHAT FACTORS INFLUENCED THE FUND'S PERFORMANCE FOR THE PERIOD ENDED MARCH
31, 2005?
A: The Fund maintained a defensive duration over the last 10 months as
interest moved higher by over 100 basis points (1.00%). While the rise in
rates caused price depreciation and generally detracted from performance of
the Fund, a longer duration would have detracted even more from performance
in a rising rate environment.
Q. HOW DO YOU PLAN TO POSITION THE FUND, BASED ON MARKET CONDITIONS?
A: In the short-term we plan to maintain our conservative duration theme as
the Fed is expected to continue raising rates. However, we will look to
increase duration at some point in the next year as the Fed approaches the
end of their tightening cycle.
PORTFOLIO COMPOSITION (as of March 31, 2005)(1)
as a percentage of total investments
Cash Equivalents 0.6%
U.S. Treasury Instruments 99.4%
(1)PORTFOLIO COMPOSITION IS SUBJECT TO CHANGE
21
SHORT-TERM U.S. TREASURY SECURITIES FUND
================================================================================
GROWTH OF $10,000 INVESTMENT (as of March 31,2005)
[LINE CHART]
SHORT-TERM U.S. CITIGROUP 1-3 YEAR CITIGROUP 6 MONTH
TREASURY TREASURY TREASURY BILL
SECURITIES FUND INDEX INDEX
(T SHARES)
03/95 10000 10000 10000
10314 10153 10233
10463 10303 10361
12/95 10721 10448 10582
10767 10587 10630
10879 10723 10724
11059 10865 10885
11267 11011 11060
11343 11154 11113
11589 11302 11344
11817 11455 11543
12/97 12015 11609 11708
12189 11761 11869
12376 11916 12031
12757 12072 12341
12853 12222 12439
12932 12359 12501
13005 12500 12552
13171 12649 12694
12/99 13245 12808 12776
13410 12980 12919
13641 13170 13094
13928 13374 13331
14305 13585 13625
14702 13782 13951
14872 13950 14081
15376 14087 14452
12/01 15493 14195 14517
15487 14271 14504
15862 14338 14792
16245 14406 15061
16388 14465 15186
16481 14515 15263
16599 14558 15338
16671 14598 15364
12/03 16695 14635 15394
16861 14673 15484
16679 14711 15338
16840 14760 15425
16843 14827 15422
03/05 16798 14910 15405
This chart assumes an initial hypothetical investment of $10,000 made on
3/31/95. Total return is based on net change in N.A.V. (net asset value)
assuming reinvestment of distributions. Returns shown on this page include
reinvestment of all dividends and other distributions.
The Funds performance is compared to the Citigroup 1-3 Year Treasury Index
and the Citigroup 6 Month Treasury Bill Index. The Citigroup 1-3 Year
Treasury Index is a widely recognized index of U.S. Treasury securities with
maturities of one year or greater and less than three years. The Citigroup 6
Month Treasury Bill Index tracks the performance of 6 month U.S. Treasury
Bills. The indices are unmanaged and do not reflect the deduction of fees or
taxes associated with a mutual fund, such as investment management and fund
accounting fees. Investors cannot invest directly in an index, although they
can invest in its underlying securities.
<Table>
<Caption>
-------------------------------------------------------------------------------------------------------------
AVERAGE ANNUAL TOTAL RETURNS AS OF 3/31/05 (%)
----------------------------------------------
SHORT-TERM U.S. TREASURY SINCE
SECURITIES FUND INCEPTION DATE 10 MONTH** 1 YEAR 3 YEAR 5 YEAR 10 YEAR INCEPTION
-------------------------------------------------------------------------------------------------------------
A SHARES WITHOUT SALES CHARGE 03/18/93 0.21 -0.68 1.87 3.40 4.24 4.05
WITH SALES CHARGE* -0.78 -1.64 1.53 3.19 4.14 3.97
-------------------------------------------------------------------------------------------------------------
L SHARES WITHOUT CDSC 06/22/95 -0.03 -0.95 1.60 3.20 -- 3.84
WITH CDSC* -1.99 -2.89 1.60 3.20 -- 3.84
-------------------------------------------------------------------------------------------------------------
T SHARES 03/15/93 0.35 -0.51 2.03 3.58 4.42 4.22
-------------------------------------------------------------------------------------------------------------
CITIGROUP 1-3 YEAR TREASURY INDEX 0.71 -0.38 2.74 4.61 5.32 --
-------------------------------------------------------------------------------------------------------------
CITIGROUP 6 MONTH TREASURY BILL INDEX 1.45 1.50 1.43 2.79 4.06 --
-------------------------------------------------------------------------------------------------------------
</Table>
PAST PERFORMANCE DOES NOT GUARANTEE FUTURE RESULTS. THE PERFORMANCE DATA
QUOTED REPRESENTS PAST PERFORMANCE AND CURRENT RETURNS MAY BE LOWER OR
HIGHER. TOTAL RETURN FIGURES INCLUDE CHANGE IN SHARE PRICE, REINVESTMENT OF
DIVIDENDS AND CAPITAL GAINS AND DO NOT REFLECT TAXES THAT A SHAREHOLDER WOULD
PAY ON FUND DISTRIBUTIONS OR ON THE REDEMPTION OF FUND SHARES. THE INVESTMENT
RETURN AND PRINCIPAL VALUE WILL FLUCTUATE SO THAT AN INVESTOR'S SHARES, WHEN
REDEEMED MAY BE WORTH MORE OR LESS THAN THE ORIGINAL COST. FOR PERFORMANCE
DATA CURRENT TO THE MOST RECENT MONTH END, VISIT OUR WEBSITE AT
WWW.STICLASSICFUNDS.COM.
"Class A Share performance reflects the maximum front-end sales charge
of 1.00% and Class L Shares reflect the maximum CDSC (contingent deferred
sales charge) of 2.00% in year one only.
**Aggregate total return
22
STRATEGIC INCOME FUND
================================================================================
PORTFOLIO MANAGER(S)
- - Michael McEachern, CFA
- - Adrien Webb, CFA
INVESTMENT CONCERNS
Mutual fund investing involves risk, including possible loss of principal.
Bonds offer a relatively stable level of income, although bond prices will
fluctuate providing the potential for principal gain or loss.
Intermediate-term, higher-quality bonds generally offer less risk than
longer-term bonds and a lower rate of return.
U.S. Government guarantees apply only to the underlying securities of the Fund's
portfolio and not the funds shares.
Although the fund's yield may be higher than that of fixed income funds that
purchase higher-rated securities, the potentially higher yield is a function of
the greater risk that the fund's share price will decline.
International investing involves increased risk and volatility.
The Fund is subject to the risk that principal value reacts in opposition to the
movement of interests rates and that a rising interest rate environment
increases the risk of loss of principal.
MANAGEMENT DISCUSSION & ANALYSIS
Q. HOW DID THE FUND PERFORM AGAINST ITS BENCHMARK FOR THE PERIOD ENDED MARCH 31,
2005?
A: The Fund performed very well relative to its benchmark, generating a total
return of 9.10% (T Shares), well ahead of the 3.60% total return for the
Merrill Lynch U.S. Treasury/Agency Master Index for the 10 months ended March
31, 2005. The fixed income markets surprised on the upside in 2005 as longer
term interest rates remained steady despite the Federal Reserve's shift in
policy which began pushing up short term interest rates in mid-2004. The
credit sector of the market also performed very well for most of the period
as economic strength translated into improved credit fundamentals and risk
premiums declined.
Q. WHAT FACTORS INFLUENCED THE FUND'S PERFORMANCE FOR THE PERIOD ENDED MARCH 31,
2005?
A: The two most important factors influencing the Fund's performance were sector
allocations and currency movements. The Fund's investments include securities
denominated in currencies other than the U.S. dollar. The decline in the
value of the U.S. dollar relative to major trading partners boosted the value
of the international holdings. The Fund was over-weighted the High Yield
sector for the first half of the period which was a positive for relative
performance. Strategic moves to take profits and reinvest in the U.S.
Government sector late in 2004 also helped returns as we avoided the downturn
in the sector in the last month of the period.(1)
Q. HOW DO YOU PLAN TO POSITION THE FUND, BASED ON MARKET CONDITIONS?
A: We remain cautious in the High Yield sector due to rich valuations,
particularly for the weakest sectors of the market which have performed very
well over the past two years. In the U.S. government sector, Treasury
Inflation Protected Securities remain a core holding. We remain firm in our
conviction that the twin structural deficits in the U.S.--trade and
fiscal--will continue to pressure the dollar relative to other currencies. We
believe U.S. investors will be rewarded for holding fixed income investments
in other currencies. Thus, we remain over-weighted in the non-dollar sector
of the portfolio. In major international markets, we see more value in the
Yen verses the Euro, and do not view the risk/reward tradeoff in the
Canadian, New Zealand, and Australian dollars to be compelling as these more
commodity sensitive currencies are expect to weaken as central banks continue
to restrict global liquidity.(1)
PORTFOLIO COMPOSITION (as of March 31, 2005)(1)
as percentage of total investments
[PIE CHART]
Corporate Bonds 73.2%
U.S. Treasury
Instruments 23.2%
Cash Equivalents 3.6%
(1) PORTFOLIO COMPOSITION IS SUBJECT TO CHANGE
23
STRATEGIC INCOME FUND
================================================================================
GROWTH OF $10,000 INVESTMENT (as of March 31,2005)
MERRILL LYNCH
MERRILL LYNCH AAA
STRATEGIC MERRILL LYNCH U.S. GLOBAL
INCOME AAA U.S. HIGH YIELD GOVERNMENT
FUND TREASURY/AGENCY MASTER II BOND II
(T SHARES) MASTER INDEX INDEX EX U.S. INDEX
11/30/01 10000 10000 10000 10000
12/01 9906 9920 9921 9912
9946 9892 10093 9851
9850 10127 9389 10282
9837 10472 9084 10953
12/02 10261 10645 9710 11032
10533 10799 10404 11145
11059 10944 11446 11420
11129 10844 11746 11335
12/03 11441 10848 12443 11293
11725 11028 12714 11614
11520 10904 12613 11273
11958 11171 13196 11625
12/04 12662 11418 13796 11679
03/05 12446 11555 13597 11633
This chart assumes an initial hypothetical investment of $10,000 made on
11/30/01. Total return is based on net change in N.A.V. (net asset value)
assuming reinvestment of distributions. Returns shown on this page include
reinvestment of all dividends and other distributions.
The Funds performance is compared to the Merrill Lynch AAA U.S. Treasury/Agency
Master Index, the Merrill Lynch U.S. High Yield Master II Index and the Merrill
Lynch AAA Global Government Bond II ex U.S. Index. The Merrill Lynch AAA U.S.
Treasury/Agency Master Index is a widely-recognized U.S. government index that
tracks the performance of the combined U.S. Treasury and U.S. agency markets. It
includes U.S. dollar-denominated, U.S. Treasury and U.S. agency bonds, issued in
the U.S. domestic bond market, having a at least one year remaining term to
maturity, a fixed coupon schedule and a minimum amount outstanding of $1 billion
for U.S. Treasuries and $150 million for U.S. agencies. The Merrill Lynch U.S.
High Yield Master II Index is a widely-recognized, market-value weighted index
that tracks the performance of below investment grade U.S. dollar-denominated
corporate bonds publicly issued in the U.S. domestic market. The Merrill Lynch
Global Government Bond II ex U.S. Index is a widely recognized subset of the
Merrill Lynch Global Government bond Index including Belgian, Danish, Irish,
Italian, New Zealand, Portuguese, Spanish and Swedish returns. The indices are
unmanaged and do not reflect the deduction of fees or taxes associated with a
mutual fund, such as investment management and fund accounting fees. Investors
cannot invest directly in an index, although they can invest in its underlying
securities.
<Table>
<Caption>
- ------------------------------------------------------------------------------------------------------------------------------------
AVERAGE ANNUAL TOTAL RETURNS AS OF 3/31/05 (%)
SINCE
STRATEGIC INCOME FUND INCEPTION DATE 10 MONTH** 1 YEAR 3 YEAR INCEPTION
- ------------------------------------------------------------------------------------------------------------------------------------
A SHARES WITHOUT SALES CHARGE 10/08/03 9.04 5.94 -- 7.87
WITH SALES CHARGE* 4.97 1.94 -- 5.10
- ------------------------------------------------------------------------------------------------------------------------------------
L SHARES WITHOUT CDSC 11/30/01 8.60 5.46 7.22 6.24
WITH CDSC* 6.60 3.46 7.22 6.24
- ------------------------------------------------------------------------------------------------------------------------------------
T SHARES 11/30/01 9.10 6.15 7.76 6.79
- ------------------------------------------------------------------------------------------------------------------------------------
MERRILL LYNCH AAA U.S. TREASURY/
AGENCY MASTER INDEX 3.60 0.16 5.69 --
- ------------------------------------------------------------------------------------------------------------------------------------
MERRILL LYNCH U.S. HIGH
YIELD MASTER II INDEX 9.37 6.94 10.53 --
- ------------------------------------------------------------------------------------------------------------------------------------
MERRILL LYNCH AAA GLOBAL GOVERNMENT
BOND II EX U.S. INDEX 5.73 4.78 5.31 --
- ------------------------------------------------------------------------------------------------------------------------------------
</Table>
PAST PERFORMANCE DOES NOT GUARANTEE FUTURE RESULTS. THE PERFORMANCE DATA QUOTED
REPRESENTS PAST PERFORMANCE AND CURRENT RETURNS MAY BE LOWER OR HIGHER. TOTAL
RETURN FIGURES INCLUDE CHANGE IN SHARE PRICE, REINVESTMENT OF DIVIDENDS AND
CAPITAL GAINS AND DO NOT REFLECT TAXES THAT A SHAREHOLDER WOULD PAY ON FUND
DISTRIBUTIONS OR ON THE REDEMPTION OF FUND SHARES. THE INVESTMENT RETURN AND
PRINCIPAL VALUE WILL FLUCTUATE SO THAT AN INVESTOR'S SHARES, WHEN REDEEMED MAY
BE WORTH MORE OR LESS THAN THE ORIGINAL COST. FOR PERFORMANCE DATA CURRENT TO
THE MOST RECENT MONTH END, VISIT OUR WEBSITE AT WWW.STICLASSICFUNDS.COM.
*Class A Share performance reflects the maximum front-end sales charge of 3.75%
and Class L Shares reflect the maximum CDSC (contingent deferred sales charge)
of 2.00% in year one only.
**Aggregate total return
24
U.S. GOVERNMENT SECURITIES FUND
================================================================================
PORTFOLIO MANAGER(S)
- - Joseph Calabrese, CFA
- - John Talty, CFA
INVESTMENT CONCERNS
Mutual fund investing involves risk, including possible loss of principal. Bonds
offer a relatively stable level of income, although bond prices will fluctuate
providing the potential for principal gain or loss. Intermediate-term,
higher-quality bonds generally offer less risk than longer-term bonds and a
lower rate of return.
U.S. Government guarantees apply only to the underlying securities of the Fund's
portfolio and not the funds shares.
The Fund is subject to the risk that principal value reacts in opposition to the
movement of interests rates and that a rising interest rate environment
increases the risk of loss of principal.
MANAGEMENT DISCUSSION & ANALYSIS
Q. How did the Fund perform against its benchmark for the period ended March 31,
2005?
A: The Fund outperformed its index by a small margin for the first quarter of
2005 (-0.22% for the Fund versus -0.27% for index) and for the 10 month
period ended March 31, 2005 the Fund produced a 3.74% (T Shares) compared to
4.17% and 2.05% for the Merrill Lynch Government/Mortgage Custom Index and
the Lehman Brothers Intermediate U.S. Government Bond Index.
Q. What factors influenced the Fund's performance for the period ended March 31,
2005?
A: Our opportunistic exposure can be found in Treasury Inflation Protected
Securities ("TIPS"). The spring has always been kind to TIPS, and this time
should be no different, as 66% of the securities' accretion occurs between
March and June. We believe that breakeven spreads are underestimating
inflation. TIPS offer many advantages including the ability to capture most,
if not all, of the yield of Agency debentures.
Higher coupon thirty year mortgages preserved performance with greater levels
of income protecting price depreciation relative to shorter duration
production. Underweighting short Treasury and Agency debentures in a
weakening bond market also supported performance.
Q. How do you plan to position the Fund, based on market conditions?
A: At present, our overriding concern is that certain market sectors are
exhibiting complacency at very expensive levels. In our estimation, a single
negative event could cause a market dislocation. Consequently, we think it is
prudent to continue to methodically decrease risk exposure and wait for more
attractive levels to surface.
We believe current market conditions are an anomaly. We also believe that
this period may represents one of the rare times superior total returns could
be achieved by underweighting spread product in favor of lower yielding
Treasuries. Net supply of Mortgages has been near zero. One advantage of
underweighting non-Treasuries when they are at rich valuations is that the
loss of yield could be minimal. Keep in mind that value added relative to a
benchmark may be accomplished by either overweighting or underweighting a
sector. The net supply of Mortgages has been near zero adding further bias to
an already rich market. While our tactical allocation is tailored to the
benchmark, we will continue to be cautious in our security selection going
forward.
PORTFOLIO COMPOSITION (as of March 31, 2005)(1)
as a percentage of total investments
[PIE CHART]
FNMA 38.1%
U.S. Treasury Instruments 34.3%
Corporate Bonds 10.2%
FHLMC 6.9%
Cash Equivalents 6.6%
GNMA 3.6%
Asset Backed Securities 0.3%
(1) PORTFOLIO COMPOSITION IS SUBJECT TO CHANGE
25
U.S. GOVERNMENT SECURITIES FUND
================================================================================
GROWTH OF $10,000 INVESTMENT (as of March 31,2005)
<Table>
<Caption>
Merrill Lynch Government/ Lehman Brothers Intermediate U.S. Government
Mortgage Custom Index U.S. Government Bond Index Securities Fund (T Shares)
03/95 $ 10000 $ 10000 $ 10000
10576 10467 10590
10782 10630 10768
12/95 11207 10985 11186
11060 10910 10936
11119 10983 10951
11329 11172 11143
11664 11431 11471
11623 11428 11341
12041 11746 11775
12419 12047 12169
12/97 12769 12313 12496
12977 12500 12703
13258 12731 12984
13800 13325 13495
13856 13358 13516
13821 13322 13458
13723 13295 13317
13839 13430 13423
12/99 13820 13423 13385
14147 13643 13658
14417 13891 13898
14844 14264 14303
15505 14829 14855
15905 15274 15226
15956 15338 15211
16740 16099 15945
12/01 16693 16077 15883
16732 16035 15888
17393 16654 16519
18216 17457 17202
18423 17627 17421
18610 17790 17550
18914 18091 17806
18901 18067 17606
12/03 18946 18030 17647
19398 18428 18001
19001 18004 17622
19550 18411 18073
19720 18451 18250
03/05 19666 18326 18210
</Table>
This chart assumes an initial hypothetical investment of $10,000 made on
3/31/95. Total return is based on net change in N.A.V. (net asset value)
assuming reinvestment of distributions. Returns shown on this page include
reinvestment of all dividends and other distributions.
The Funds performance is compared to the Merrill Lynch Government/Mortgage
Custom Index and the Lehman Brothers Intermediate U.S. Government Bond Index.
The Merrill Lynch Government/Mortgage Custom Index is a synthetic index created
by combining, at their respected market weights, the Merrill Lynch Government
Master Index, which is a comprised of U.S. Treasury securities and U.S.
government agency securities with a maturity of at least one year; and the
Merrill Lynch Mortgage Master Index, which is comprised of mortgage-backed
securities including 15 and 30 year single family mortgages in addition to
aggregated pooled mortgages. The Lehman Brothers Intermediate U.S. Government
bond index is a market value-weighted index of U.S. Treasury securities, U.S.
government agency obligations, and corporate debt backed by the U.S. Government,
fixed-rate nonconvertible corporate debt securities, Yankee bonds, and
nonconvertible debt securities issued by or guaranteed by foreign governments
and agencies. All securities in the Index are rated investment grade (BBB) or
higher, with maturities of at least one year. The indices are unmanaged and do
not reflect the deduction of fees or taxes associated with a mutual fund, such
as investment management and fund accounting fees. Investors cannot invest
directly in an index, although they can invest in its underlying securities.
<Table>
<Caption>
- ------------------------------------------------------------------------------------------------------------------------------------
AVERAGE ANNUAL TOTAL RETURNS AS OF 3/31/05 (%)
-----------------------------------------------------------
SINCE
U.S. GOVERNMENT SECURITIES FUND INCEPTION DATE 10 MONTH** 1 YEAR 3 YEAR 5 YEAR 10 YEAR INCEPTION
- ------------------------------------------------------------------------------------------------------------------------------------
A SHARES WITHOUT SALES CHARGE 06/06/94 3.32 0.68 4.20 5.47 5.75 5.62
WITH SALES CHARGE* -0.52 -3.13 2.88 4.67 5.35 5.25
- ------------------------------------------------------------------------------------------------------------------------------------
L SHARES WITHOUT CDSC 06/07/95 2.83 0.12 3.65 4.95 -- 4.73
WITH CDSC* 0.83 -1.83 3.65 4.95 -- 4.73
- ------------------------------------------------------------------------------------------------------------------------------------
T SHARES 08/01/94 3.74 1.16 4.65 5.92 6.18 6.09
- ------------------------------------------------------------------------------------------------------------------------------------
MERRILL LYNCH GOVERNMENT/MORTGAGE 4.17 1.38 5.53 6.81 6.99 --
CUSTOM INDEX
- ------------------------------------------------------------------------------------------------------------------------------------
LEHMAN BROTHERS INTERMEDIATE U.S. 2.05 -0.55 4.55 6.08 6.24 --
GOVERNMENT BOND INDEX
- ------------------------------------------------------------------------------------------------------------------------------------
</Table>
PAST PERFORMANCE DOES NOT GUARANTEE FUTURE RESULTS. THE PERFORMANCE DATA QUOTED
REPRESENTS PAST PERFORMANCE AND CURRENT RETURNS MAY BE LOWER OR HIGHER. TOTAL
RETURN FIGURES INCLUDE CHANGE IN SHARE PRICE, REINVESTMENT OF DIVIDENDS AND
CAPITAL GAINS AND DO NOT REFLECT TAXES THAT A SHAREHOLDER WOULD PAY ON FUND
DISTRIBUTIONS OR ON THE REDEMPTION OF FUND SHARES. THE INVESTMENT RETURN AND
PRINCIPAL VALUE WILL FLUCTUATE SO THAT AN INVESTOR'S SHARES, WHEN REDEEMED MAY
BE WORTH MORE OR LESS THAN THE ORIGINAL COST. FOR PERFORMANCE DATA CURRENT TO
THE MOST RECENT MONTH END, VISIT OUR WEBSITE AT WWW.STICLASSICFUNDS.COM.
*Class A Share performance reflects the maximum front-end sales charge of 3.75%
and Class L Shares reflect the maximum CDSC (contingent deferred sales charge)
of 2.00% in year one only.
**Aggregate total return
26
VIRGINIA INTERMEDIATE MUNICIPAL BOND FUND
================================================================================
PORTFOLIO MANAGER(S)
- - George E. Calvert, Jr.
INVESTMENT CONCERNS
The geographical concentration of portfolio holdings in this fund may involve
increased risk.
Mutual fund investing involves risk, including possible loss of principal. Bonds
offer a relatively stable level of income, although bond prices will fluctuate
providing the potential for principal gain or loss. Intermediate-term,
higher-quality bonds generally offer less risk than longer-term bonds and a
lower rate of return.
The Fund's income may be subject to certain state and local taxes and, depending
on your tax status, the federal alternative minimum tax.
The Fund is subject to the risk that principal value reacts in opposition to the
movement of interests rates and that a rising interest rate environment
increases the risk of loss of principal.
MANAGEMENT DISCUSSION & ANALYSIS
Q. How did the Fund perform against its benchmark for the period ended March 31,
2005?
A: For the 10 months ended March 31, 2005 the Fund out performed its benchmark
index producing a total return of 3.21% (T Shares) compared to 2.84% for the
Lehman Brothers 5 Year Municipal Bond Index. The Fund's relatively good
performance can be attributed to maintaining a duration towards the middle of
its recent range, rather than shortening up, at a time when rates were
expected to rise and monetary policy was being tightened. The Fund held this
duration target while simultaneously adding exposure to more bonds in the 20
year area, and offsetting those purchases with nearly 25% of assets in bonds
and demand notes due 2 years and in.
Q. What factors influenced the Fund's performance for the period ended March
31,2005?
A: There were no specific investments that influenced performance. Instead, the
Fund used a full maturity range that allowed some participation in the longer
end where returns were the greatest during a period that, in hind sight, now
looks like a "bull flattener" with higher short rates and lower long rates.
The Fund also benefited by holding some higher yielding, lower quality bonds
at a time when credit spreads narrowed world wide and many portfolios were
short their benchmarks. Some of our callable, full coupon bonds were also
refunded during this period, leading to price appreciation.(1)
Q. How do you plan to position the Fund, based on market conditions?
A: No changes are anticipated near term. We intend to continue a heavy weighting
of short bonds, including some high coupon "cushion" structures, some lower
quality bonds for income, and an exposure to bonds out in the 20 year
maturity range. We intend to increase the average par value of blocks we
purchase and to trade more actively than in the past as opportunities arise
to obtain better relative values in the short end of the curve.(1)
PORTFOLIO COMPOSITION (as of March 31, 2005)(1)
as a percentage of total investments
[PIE CHART]
AAA 44.3%
AA 39.0%
A 6.6%
BBB 1.1%
BB 0.5%
Not Rated 4.7%
(1) PORTFOLIO COMPOSITION IS SUBJECT TO CHANGE
27
VIRGINIA INTERMEDIATE MUNICIPAL BOND FUND
================================================================================
GROWTH OF $10,000 INVESTMENT (as of March 31,2005)
[LINE GRAPH]
LEHMAN BROTHERS VIRGINIA INTERMEDIATE
5 YEAR MUNICIPAL MUNICIPAL BOND
BOND INDEX FUND (T SHARES)
03/95 10000 10000
10268 10213
10513 10485
12/95 10729 10780
10729 10688
10787 10712
10965 10875
11182 11098
11179 11081
11452 11376
11697 11651
12/97 11895 11903
12033 12010
12168 12142
12487 12451
12590 12523
12721 12602
12563 12353
12681 12301
12/99 12682 12230
12834 12480
13036 12619
13293 12911
13661 13379
14048 13649
14186 13724
14576 14039
12/01 14509 13972
14593 14064
15194 14531
15721 15070
15854 15073
16031 15212
16322 15528
16486 15539
12/03 16509 15649
16719 15834
16360 15504
16823 15951
16958 16065
03/05 16763 15958
This chart assumes an initial hypothetical investment of $10,000 made on
3/31/95. Total return is based on net change in N.A.V. (net asset value)
assuming reinvestment of distributions. Returns shown on this page include
reinvestment of all dividends and other distributions.
The Funds performance is compared to the Lehman Brothers 5 Year Municipal Bond
Index a widely recognized index of intermediate investment grade tax-exempt
bonds. The index includes general obligation bonds, revenue bonds, insured bonds
and prefunded bonds with maturities between 4 and 6 years. The index is
unmanaged and does not reflect the deduction of fees or taxes associated with a
mutual fund, such as investment management and fund accounting fees. Investors
cannot invest directly in an index, although they can invest in its underlying
securities.
<Table>
<Caption>
- ------------------------------------------------------------------------------------------------------------------------------------
AVERAGE ANNUAL TOTAL RETURNS AS OF 3/31/05 (%)
--------------------------------------------------
VIRGINIA INTERMEDIATE
MUNICIPAL BOND FUND INCEPTION DATE 10 MONTH** 1 YEAR 3 YEAR 5 YEAR 10 YEAR
- ------------------------------------------------------------------------------------------------------------------------------------
A SHARES WITHOUT SALES CHARGE 05/05/93 3.14 0.71 4.25 4.99 4.76
WITH SALES CHARGE* -0.77 -3.09 2.94 4.19 4.36
- ------------------------------------------------------------------------------------------------------------------------------------
T SHARES 01/11/93 3.21 0.79 4.30 5.04 4.78
- ------------------------------------------------------------------------------------------------------------------------------------
LEHMAN BROTHERS 5 YEAR
MUNICIPAL BOND INDEX 2.84 0.26 4.73 5.49 5.30
- ------------------------------------------------------------------------------------------------------------------------------------
</Table>
PAST PERFORMANCE DOES NOT GUARANTEE FUTURE RESULTS. THE PERFORMANCE DATA QUOTED
REPRESENTS PAST PERFORMANCE AND CURRENT RETURNS MAY BE LOWER OR HIGHER. TOTAL
RETURN FIGURES INCLUDE CHANGE IN SHARE PRICE, REINVESTMENT OF DIVIDENDS AND
CAPITAL GAINS AND DO NOT REFLECT TAXES THAT A SHAREHOLDER WOULD PAY ON FUND
DISTRIBUTIONS OR ON THE REDEMPTION OF FUND SHARES. THE INVESTMENT RETURN AND
PRINCIPAL VALUE WILL FLUCTUATE SO THAT AN INVESTOR'S SHARES, WHEN REDEEMED MAY
BE WORTH MORE OR LESS THAN THE ORIGINAL COST. FOR PERFORMANCE DATA CURRENT TO
THE MOST RECENT MONTH END, VISIT OUR WEBSITE AT WWW.STICLASSICFUNDS.COM.
*Class A Share performance reflects the maximum front-end sales charge of 3.75%
and Class L Shares reflect the maximum CDSC (contingent deferred sales charge)
of 2.00% in year one only.
**Aggregate total return
28
VIRGINIA MUNICIPAL BOND FUND
================================================================================
PORTFOLIO MANAGER(S)
- - George E. Calvert, Jr.
INVESTMENT CONCERNS
Mutual fund investing involves risk, including possible loss of principal. Bonds
offer a relatively stable level of income, although bond prices will fluctuate
providing the potential for principal gain or loss. Intermediate-term,
higher-quality bonds generally offer less risk than longer-term bonds and a
lower rate of return.
The geographical concentration of portfolio holdings in this fund may involve
increased risk.
Certain shareholders may be subject to the Alternative Minimum Tax (AMT).
Federal income tax rules will apply to any capital gains distributions.
The Fund is subject to the risk that principal value reacts in opposition to the
movement of interests rates and that a rising interest rate environment
increases the risk of loss of principal.
MANAGEMENT DISCUSSION & ANALYSIS
Q. HOW DID THE FUND PERFORM AGAINST ITS BENCHMARK FOR THE PERIOD ENDED MARCH 31,
2005?
A: For the 10 months ended March 31, 2005 the Fund underperformed its benchmark
index producing a total return of 4.41% (T Shares) compared to 4.65% for the
Lehman Brothers 10 Year Municipal Bond Index. The best performing part of the
municipal curve was the 20-years and longer range. Our Fund was underweight
that range for much of the period but did acquire more long 5% coupon bonds
in the second half of 2004, improving performance.
Q. WHAT FACTORS INFLUENCED THE FUND'S PERFORMANCE FOR THE PERIOD ENDED MARCH 31,
2005?
A: Yield curve positioning was more critical than anything else in the municipal
market for this period. Some investments that contributed less to performance
than we expected were higher coupon, longer dated bonds with less than 10
years of call protection remaining. These securities are usually seen as
"defensive" in nature during a time of rising rates and we held them rather
than make an adjustment to lower coupon bonds as we expected rates to rise.
As long term rates declined for this period, while short rates were rising,
some of these higher coupon bonds did not perform as well as newly issued,
10-year call protected securities that captured the outstanding performance
of the long end of the curve for this period. On the positive side, our
higher yielding, lower quality bonds performed exceptionally well as credit
spreads narrowed in all sectors of fixed income worldwide as investors sought
better yields.(1)
Q. HOW DO YOU PLAN TO POSITION THE FUND, BASED ON MARKET CONDITIONS?
A: We will maintain an ample weighting of long maturity bonds for their income
contribution and with the expectation that long term yields may not rise as
much as previously expected. We believe trading of existing holdings could
occur more frequently, assuming an adequate supply of new issues, to make
tactical changes in relative value up and down the shorter end of the curve.
We will continue to hold a heavier than normal weighting of two-years and in
maturity bonds and variable rate demand bonds for defensive purposes.(1)
PORTFOLIO COMPOSITION (as of March 31, 2005)(1)
as a percentage of total investments
[PIE CHART]
AAA 63.7%
AA 14.7%
A 7.8%
Not Rated 8.7%
Cash Equivalents 5.1%
(1) PORTFOLIO COMPOSITION IS SUBJECT TO CHANGE
29
VIRGINIA MUNICIPAL BOND FUND
================================================================================
GROWTH OF $10,000 INVESTMENT (as of March 31,2005)
[LINE GRAPH]
LEHMAN BROTHERS
10 YEAR VIRGINIA MUNICIPAL
MUNICIPAL BOND BOND FUND
INDEX (T SHARES)
4/4/95 10000 10000
10268 10153
10513 10446
12/95 10729 10879
10729 10583
10787 10612
10965 10799
11182 11063
11179 10984
11452 11359
11697 11702
12/97 11895 12038
12033 12161
12168 12307
12487 12715
12590 12743
12721 12814
12563 12584
12681 12355
12/99 12682 12124
12834 12460
13036 12659
13293 12971
13661 13537
14048 13798
14186 13862
14576 14216
12/01 14509 14109
14593 14218
15194 14716
15721 15415
15854 15401
16031 15569
16322 15941
16486 15939
12/03 16509 16080
16719 16262
16360 15913
16823 16458
16958 16625
03/05 16763 16566
This chart assumes an initial hypothetical investment of $10,000 made on
4/4/95. Total return is based on net change in N.A.V. (net asset value)
assuming reinvestment of distributions. Returns shown on this page include
reinvestment of all dividends and other distributions.
The Funds performance is compared to the Lehman Brothers 10 Year Municipal Bond
Index a widely recognized index of long-term investment grade tax-exempt bonds.
The index includes general obligation bonds, revenue bonds, insured bonds and
prefunded bonds with maturities between 8 and 12 years. The index is unmanaged
and does not reflect the deduction of fees or taxes associated with a mutual
fund, such as investment management and fund accounting fees. Investors cannot
invest directly in an index, although they can invest in its underlying
securities.
<Table>
<Caption>
- ------------------------------------------------------------------------------------------------------------------------------------
AVERAGE ANNUAL TOTAL RETURNS AS OF 3/31/05 (%)
----------------------------------------------------
SINCE
VIRGINIA MUNICIPAL BOND FUND INCEPTION DATE 10 MONTH** 1 YEAR 3 YEAR 5 YEAR INCEPTION
- ------------------------------------------------------------------------------------------------------------------------------------
A SHARES WITHOUT SALES CHARGE 05/04/04 4.19 -- -- -- 5.30
WITH SALES CHARGE* 0.32 -- -- -- 1.36
- ------------------------------------------------------------------------------------------------------------------------------------
L SHARES WITHOUT CDSC 04/14/95 3.54 0.87 4.25 4.86 4.19
WITH CDSC* 1.54 -1.06 4.25 4.86 4.19
- ------------------------------------------------------------------------------------------------------------------------------------
T SHARES 04/04/95 4.41 1.87 5.23 5.86 5.18
- ------------------------------------------------------------------------------------------------------------------------------------
LEHMAN BROTHERS 10 YEAR 4.65 1.82 5.98 6.41 --
MUNICIPAL BOND INDEX
- ------------------------------------------------------------------------------------------------------------------------------------
</Table>
PAST PERFORMANCE DOES NOT GUARANTEE FUTURE RESULTS. THE PERFORMANCE DATA QUOTED
REPRESENTS PAST PERFORMANCE AND CURRENT RETURNS MAY BE LOWER OR HIGHER. TOTAL
RETURN FIGURES INCLUDE CHANGE IN SHARE PRICE, REINVESTMENT OF DIVIDENDS AND
CAPITAL GAINS AND DO NOT REFLECT TAXES THAT A SHAREHOLDER WOULD PAY ON FUND
DISTRIBUTIONS OR ON THE REDEMPTION OF FUND SHARES. THE INVESTMENT RETURN AND
PRINCIPAL VALUE WILL FLUCTUATE SO THAT AN INVESTOR'S SHARES, WHEN REDEEMED MAY
BE WORTH MORE OR LESS THAN THE ORIGINAL COST. FOR PERFORMANCE DATA CURRENT TO
THE MOST RECENT MONTH END, VISIT OUR WEBSITE AT WWW.STICLASSICFUNDS.COM.
*Class A Share performance reflects the maximum front-end sales charge of 3.75%
and Class L Shares reflect the maximum CDSC (contingent deferred sales charge)
of 2.00% in year one only.
**Aggregate total return
30
INVESTMENT ADVISER:
TRUSCO CAPITAL MANAGEMENT, INC.
This information must be preceded or accompanied by
a current prospectus for each Fund described. An
investor should consider the Fund's investment
objectives, risks, charges and expenses carefully before
investing or sending money. This and other important
information about STI Classic Funds can be found
in the Fund's prospectus. For additional information
please call 1-800-428-6970, option 1, or by visiting our
Website at www.sticlassicfunds.com. Please read the
prospectus carefully before investing.
DISTRIBUTOR:
BISYS FUND SERVICES LP
Not FDIC Insured - No Bank Guarantee - May Lose Value
STI CLASSIC FUNDS
STI-AR-FI 0305
06/05
SCHEDULE OF PORTFOLIO INVESTMENTS
STI CLASSIC FIXED INCOME FUNDS March 31, 2005 (Amounts in thousands, except
shares)
FLORIDA TAX-EXEMPT BOND FUND
<Table>
<Caption>
- -------------------------------------------------------
Shares or
Principal
Amount Value
- -------------------------------------------------------
MUNICIPAL BONDS (90.9%)
FLORIDA (73.5%)
Alachua County Health
Facilities Authority,
Shands Teaching Hospital,
Ser B, RB, 2.190%,
12/01/26, MBIA (b) $ 2,000 $ 2,000
Brevard County School Board,
COP, 5.500%, 07/01/17,
Callable 07/01/12 @ 100,
AMBAC 1,360 1,488
Brevard County School Board,
COP, 5.500%, 07/01/18,
Callable 07/01/2012 @ 100,
AMBAC 3,015 3,295
Brevard County Utility
Authority, RB, 5.250%,
03/01/13, Callable 03/01/12
@ 100, FGIC 1,000 1,086
Brevard County Utility
Authority, RB, 5.250%,
03/01/14, Callable 03/01/12
@ 100, FGIC 1,000 1,087
Broward County Parks & Land
Preservation Project, GO,
5.000%, 01/01/15 2,500 2,700
Collier County Water & Sewer
District, Ser B, RB,
5.500%, 07/01/16, Callable
07/01/13 @ 100, FSA 2,125 2,348
Dade County Aviation
Authority, Ser A, RB,
6.000%, 10/01/09, Callable
10/01/05 @ 102, AMBAC 500 518
Daytona Beach Utility Systems
Authority, Ser D, RB,
5.250%, 11/15/15, Callable
11/15/12 @ 100, FSA 1,000 1,083
Deerfield Beach Water & Sewer
Authority, Refunding &
Improvement Project, RB,
6.125%, 10/01/06, FGIC 140 143
Escambia County Sales Tax
Authority, RB, 5.250%,
10/01/15, Callable 10/01/12
@ 101, AMBAC 2,165 2,359
</Table>
<Table>
<Caption>
- -------------------------------------------------------
Shares or
Principal
Amount Value
- -------------------------------------------------------
FLORIDA--CONTINUED
Florida State Board of
Education, Capital Outlay,
Public Education Project,
GO, 9.125%, 06/01/14, ETM $ 950 $ 1,236
Florida State Board of
Education, Capital Outlay,
Public Education Project,
Ser B, GO, 5.250%,
06/01/11, Callable 06/01/08
@ 101 1,000 1,068
Florida State Board of
Education, Capital Outlay,
Public Education Project,
Ser B, GO, 5.500%,
06/01/15, Callable 06/01/11
@ 101 3,000 3,291
Florida State Board of
Education, Capital Outlay,
Public Education Project,
Ser B, GO, 5.375%,
06/01/18, Callable 06/01/12
@ 101 2,130 2,314
Florida State Board of
Education, Capital Outlay,
Public Education Project,
Ser C, GO, 5.400%,
06/01/10, Callable 06/01/05
@ 101 2,745 2,787
Florida State Board of
Education, Capital Outlay,
Public Education Project,
Ser C, GO, 7.100%,
06/01/07, ETM 190 190
Florida State Board of
Education, Capital Outlay,
Public Education Project,
Ser D, GO, 5.375%,
06/01/15, Callable 06/01/12
@ 100 1,535 1,668
Florida State Board of
Education, Capital Outlay,
Public Education Project,
Ser D, GO, 5.625%,
06/01/15, Callable 06/01/10
@ 101 1,235 1,356
</Table>
31
<Table>
<Caption>
- -------------------------------------------------------
Shares or
Principal
Amount Value
- -------------------------------------------------------
FLORIDA--CONTINUED
Florida State Board of
Education, Capital Outlay,
Public Education Project,
Ser H, GO, 5.250%,
06/01/11, FSA $ 2,150 $ 2,352
Florida State Board of
Education, Lottery Revenue,
Ser A, RB, 6.000%,
07/01/12, Callable 07/01/10
@ 101, FGIC 1,295 1,455
Florida State Board of
Education, Lottery Revenue,
Ser A, RB, 5.375%,
07/01/15, Callable 07/01/12
@ 101, FGIC 3,500 3,833
Florida State Board of
Education, Lottery Revenue,
Ser B, RB, 5.500%,
07/01/12, Callable 07/01/10
@ 101, FGIC 4,050 4,492
Florida State Boynton Beach,
Utility System Authority,
RB, 5.500%, 11/01/16, FGIC 1,310 1,485
Florida State Department of
Transportation, GO, 5.000%,
07/01/20, Callable 07/01/12
@ 101 4,240 4,447
Florida State Division of
Bond Finance, Department of
Environmental Protection &
Preservation, Ser 2000-A,
RB, 5.375%, 07/01/11,
Callable 07/01/09 @ 101,
FGIC 2,130 2,309
Florida State Housing
Financing Authority,
Homeowner Mortgage Project,
Ser 7, RB, AMT, 5.200%,
01/01/31, Callable 07/01/09
@ 100, FSA 390 398
Florida State Turnpike
Authority, Department of
Transportation Project, Ser
B, RB, 5.250%, 07/01/14,
Callable 07/01/13 @ 101,
AMBAC 2,215 2,439
</Table>
<Table>
<Caption>
- -------------------------------------------------------
Shares or
Principal
Amount Value
- -------------------------------------------------------
FLORIDA--CONTINUED
Greater Orlando Aviation
Authority, Airport
Facilities, RB, AMT,
5.500%, 10/01/17, FGIC $ 1,810 $ 1,995
Hillsborough County Community
Improvement Tax, RB,
5.000%, 11/01/25, Callable
11/01/13 @ 101, AMBAC 2,345 2,443
Hillsborough County
Industrial Development
Authority, University
Community Hospital Project,
RB, 6.500%, 08/15/19, MBIA 145 176
Jacksonville Electric
Authority, Electrical
Systems Project, Ser 3-A,
RB, 5.250%, 10/01/13,
Callable 10/01/07 @ 101 1,000 1,065
Jacksonville Health
Facilities Authority,
Charity Obligation Group,
Ser C, RB, 5.750%,
08/15/11, Prerefunded @ 101 3,090 3,423
Jacksonville Sales Tax
Revenue, RB, 5.500%,
10/01/13, Callable 10/01/11
@ 100, AMBAC 1,435 1,585
Jacksonville Sales Tax
Revenue, RB, 5.500%,
10/01/14, Callable 10/01/11
@ 100, AMBAC 1,200 1,319
Jacksonville Sales Tax
Revenue, RB, 5.500%,
10/01/15, Callable 10/01/11
@ 100, AMBAC 1,550 1,702
JEA Water & Sewer Systems,
Second Crossover, RB,
5.000%, 10/01/24, Callable
10/01/14 @ 100, MBIA 2,000 2,080
Lee County Industrial
Development Authority,
Bonita Springs Utilities
Project, RB, AMT, 5.750%,
11/01/10, Callable 11/01/06
@ 101, MBIA 1,480 1,549
</Table>
32
SCHEDULE OF PORTFOLIO INVESTMENTS
STI CLASSIC FIXED INCOME FUNDS March 31, 2005 (Amounts in thousands, except
shares)
FLORIDA TAX-EXEMPT BOND FUND -- CONCLUDED
<Table>
<Caption>
- -------------------------------------------------------
Shares or
Principal
Amount Value
- -------------------------------------------------------
FLORIDA--CONTINUED
Lee County Memorial Health
Systems Hospital, Ser A,
RB, 5.750%, 04/01/15,
Callable 04/01/12 @ 100,
FSA $ 1,000 $ 1,112
Lee County Transportation
Facility Authority, Ser A,
RB, 5.500%, 10/01/13,
Callable 10/01/11 @ 100,
AMBAC 2,000 2,209
Lee County Transportation
Facility Authority, Ser A,
RB, 5.000%, 10/01/27,
Callable 10/01/14 @ 100,
AMBAC 6,000 6,230
Manatee County Improvement
Project, RB, 5.000%,
10/01/23, Callable 10/01/14
@ 100, FGIC 2,095 2,193
Miami Parking Facilities
Authority, RB, 5.250%,
10/01/15, MBIA 1,000 1,097
Naples Water & Sewer Revenue,
RB, 4.000%, 09/01/05 1,000 1,007
Ocala Capital Improvements,
RB, 5.375%, 10/01/17,
Callable 10/01/13 @ 100,
AMBAC 1,610 1,765
Ocala Capital Improvements,
RB, 5.375%, 10/01/18,
Callable 10/01/13 @ 100,
AMBAC 1,700 1,858
Orange County Health
Facilities Authority, Ser
C, RB, 6.250%, 10/01/16,
MBIA 4,855 5,756
Orange County School Board,
Ser A, COP, 5.500%,
08/01/18, Callable 08/01/12
@ 100, MBIA 2,335 2,554
Orange County Tourist
Development Tax Revenue,
RB, 5.500%, 10/01/11,
Callable 10/1/09 @ 100,
AMBAC 3,030 3,283
Osceola County Tourist
Development Tax Authority,
Ser A, RB, 5.500%,
10/01/15, Callable 10/01/12
@ 100, FGIC 1,000 1,101
</Table>
<Table>
<Caption>
- -------------------------------------------------------
Shares or
Principal
Amount Value
- -------------------------------------------------------
FLORIDA--CONTINUED
Palm Beach County Criminal
Justice Facility, RB,
5.000%, 06/01/15 $ 1,865 $ 2,020
Palm Beach County Land
Acquisition Program, Ser A,
GO, 5.375%, 06/01/13,
Callable 06/01/11 @ 100 2,260 2,472
Palm Beach County Land
Acquisition Program, Ser A,
GO, 5.375%, 06/01/14,
Callable 06/01/11 @ 100 1,050 1,150
Palm Beach County Land
Acquisition Program, Ser A,
GO, 5.500%, 06/01/16,
Callable 06/01/11 @ 100 1,200 1,317
Palm Beach County School
Board Authority, Ser C,
COP, 5.500%, 08/01/14,
Callable 08/01/12 @ 100,
FSA 2,735 3,030
Palm Beach County School
Board Authority, Ser C,
COP, 5.500%, 08/01/19,
Callable 08/01/12 @ 100,
FSA 3,305 3,682
Palm Beach County Solid Waste
Authority, Ser A, RB,
6.000%, 10/01/09, AMBAC 300 334
Pensacola Airport Authority,
Ser A, RB, AMT, 6.250%,
10/01/09, AMBAC 505 558
Pensacola Airport Authority,
Ser A, RB, AMT, 6.000%,
10/01/12, Callable 10/01/08
@ 102, MBIA 1,075 1,173
Plant City Utility Systems
Authority, Refunding &
Improvements Project, RB,
6.000%, 10/01/15, MBIA 400 461
Polk County School District
Sales Tax Authority, RB,
5.250%, 10/01/15, Callable
10/01/14 @ 100, FSA 2,000 2,195
Polk County Utility Systems
Authority, RB, 6.000%,
10/01/08, FGIC 1,855 1,960
</Table>
33
<Table>
<Caption>
- -------------------------------------------------------
Shares or
Principal
Amount Value
- -------------------------------------------------------
FLORIDA--CONTINUED
Port Orange Water & Sewer
Authority, RB, 5.000%,
10/01/16, Callable 10/01/12
@ 101, AMBAC $ 1,095 $ 1,168
Reedy Creek Improvements
District, Ser 1, RB,
6.000%, 10/01/05, MBIA 2,645 2,692
Tampa Guaranteed Entitlement
Authority, RB, 6.000%,
10/01/18, AMBAC 500 572
Tampa Sales Tax Authority,
Ser A, RB, 5.375%,
10/01/14, Callable 10/01/11
@ 101, AMBAC 1,640 1,803
--------
129,316
--------
PUERTO RICO (17.4%)
Puerto Rico Commonwealth
Government Development
Bank, RB, 2.190%, 12/01/15,
MBIA (b) 3,000 3,000
Puerto Rico Commonwealth
Highway & Transportation
Authority, RB, 5.250%,
07/01/15, Callable 07/01/13
@ 100, FGIC 5,860 6,421
Puerto Rico Commonwealth
Highway & Transportation
Authority, Ser I, RB,
5.000%, 07/01/23, Callable
07/01/14 @ 100, FGIC 4,000 4,208
Puerto Rico Commonwealth
Highway & Transportation
Authority, Ser G, RB,
5.250%, 07/01/15, Callable
07/01/13 @ 100, FGIC 3,000 3,288
Puerto Rico Commonwealth
Municipal Finance Agency,
Ser A, RB, 5.250%,
08/01/14, Callable 08/01/12
@ 100, FSA 6,965 7,605
</Table>
<Table>
<Caption>
- -------------------------------------------------------
Shares or
Principal
Amount Value
- -------------------------------------------------------
PUERTO RICO--CONTINUED
Puerto Rico Commonwealth
Municipal Finance Agency,
Ser A, RB, 5.250%,
08/01/16, Callable 08/01/12
@ 100, FSA $ 1,020 $ 1,104
Puerto Rico Commonwealth Tax
& Revenue Authority,
3.000%, 07/29/05 5,000 5,011
--------
30,637
--------
Total Municipal Bonds (Cost
$157,723) 159,953
--------
REPURCHASE AGREEMENT (0.0%)
Deutsche Bank AG, 2.650%,
dated 03/31/05, to be
repurchased on 04/01/05,
repurchase price $10,603
(collateralized by U.S.
Treasury Obligations, DN,
due 05/19/05; total market
value $10,961) 11 11
--------
Total Repurchase Agreement
(Cost $11) 11
--------
MONEY MARKET FUNDS (9.6%)
Federated Tax-Free
Obligations Fund 8,663,741 8,664
SEI Tax Exempt Trust,
Institutional Tax Free Fund 8,143,183 8,143
--------
16,807
--------
Total Money Market Funds (Cost
$16,807) 16,807
--------
Total Investments (Cost
$174,541) (a) -- 100.5% 176,771
Liabilities in excess of other
assets -- (0.5)% (795)
--------
Net Assets -- 100.0% $175,976
========
</Table>
See notes to schedules of portfolio investments and notes to financial
statements.
34
SCHEDULE OF PORTFOLIO INVESTMENTS
STI CLASSIC FIXED INCOME FUNDS March 31, 2005 (Amounts in thousands, except
shares)
GEORGIA TAX-EXEMPT BOND FUND
<Table>
<Caption>
- -------------------------------------------------------
Shares or
Principal
Amount Value
- -------------------------------------------------------
MUNICIPAL BONDS (96.5%)
GEORGIA (89.5%)
Association County
Commissioners of Georgia
Leasing Program, Georgia
Public Purpose Project,
COP, 5.250%, 04/01/21,
Callable 04/01/14 @ 102 $ 2,680 $ 2,882
Athens Housing Authority,
Student Housing Lease
Project, RB, 5.250%,
12/01/21, Callable 12/01/12
@ 100, AMBAC 1,000 1,069
Atlanta Airport Project, Ser
A, RB, AMT, 5.375%,
01/01/19, Callable 07/01/14
@ 100, FSA 5,000 5,339
Atlanta Downtown Development
Authority Underground
Project, RB, 2.260%,
10/01/16, AMBAC (b) 2,000 2,000
Augusta Water & Sewer
Authority, RB, 5.250%,
10/01/34, Callable 10/01/14
@ 100, FSA 1,000 1,061
Brunswick Water & Sewer,
Refunding & Improvement
Project, RB, 6.100%,
10/01/14, MBIA 1,000 1,157
Burke County Development
Authority, Pollution
Control, Vogtle Project,
RB, 2.050%, 10/01/32 (b) 650 650
Burke County Development
Authority, Pollution
Control, Vogtle Project,
RB, 2.000%, 10/01/32 (b) 3,285 3,285
Carrollton Payroll
Development Authority, UWG
Campus Center, RB, 5.250%,
08/01/27, Callable 8/01/14
@ 100, MBIA 1,650 1,750
Central Valdosta Development
Authority, Lowndes County
Judicial Project, RB,
5.250%, 06/01/21, Callable
06/01/13 @ 102 1,885 2,018
</Table>
<Table>
<Caption>
- -------------------------------------------------------
Shares or
Principal
Amount Value
- -------------------------------------------------------
GEORGIA--CONTINUED
Clarke County Hospital
Authority, Athens Regional
Medical Center Project, RB,
5.375%, 01/01/07, MBIA $ 1,425 $ 1,485
Cobb County Development
Authority, Parking Revenue,
Kennesaw State University
Foundation, Inc. Project,
Ser A, RB, 5.000%,
07/15/29, Callable 7/15/14
@ 100, MBIA 2,000 2,066
Cobb County Development
Authority, Parking Revenue,
Kennesaw State University
Foundation, Inc. Project,
RB, 5.000%, 07/15/29,
Callable 07/15/14 @ 100,
MBIA 2,250 2,324
Cobb-Marietta County Coliseum
& Exhibit Hall Project, RB,
5.500%, 10/01/12, MBIA 940 1,035
Columbus Water & Sewer, RB,
5.000%, 05/01/25, Callable
05/01/14 @ 100, MBIA 1,000 1,041
Dahlonega Downtown
Development Authority,
Student Housing, North
Georgia Student Housing
Project, Ser A, RB, 2.290%,
06/01/28 LOC: First Union
National Bank (b) 2,000 2,000
Dalton Utilities, RB, 6.000%,
01/01/08, MBIA 3,240 3,493
Dekalb County Public Safety &
Judicial Facilities
Authority, RB, 5.000%,
12/01/29, Callable 01/01/14
@ 101 1,000 1,038
Dougherty County School
District, Sales Tax
Authority, GO, 4.000%,
03/01/07 2,000 2,042
Douglasville-Douglas County
Water & Sewer Authority,
RB, 5.625%, 06/01/15, AMBAC 1,390 1,541
Floyd County Georgia School
District, RB, 4.000%,
08/01/07 2,000 2,048
</Table>
35
<Table>
<Caption>
- -------------------------------------------------------
Shares or
Principal
Amount Value
- -------------------------------------------------------
GEORGIA--CONTINUED
Forsyth County Hospital
Authority, Baptist Health
Care System Project, RB,
6.375%, 10/01/28, ETM $ 1,000 $ 1,236
Fulton County Development
Authority, Georgia Tech
Athletic Association, RB,
5.000%, 10/01/07, AMBAC 1,000 1,050
Fulton County Development
Authority, Molecular
Science Building Project,
RB, 5.250%, 05/01/22,
Callable 05/01/14 @ 100,
MBIA 2,370 2,534
Fulton County Development
Authority, Molecular
Science Building Project,
RB, 5.250%, 05/01/27,
Callable 05/01/14 @ 100,
MBIA 3,375 3,587
Fulton County Water & Sewer,
RB, 5.000%, 01/01/24,
Callable 01/01/14 @ 100,
FGIC 2,000 2,083
Georgia State Municipal
Electric Authority, RB,
8.000%, 01/01/15, ETM 1,900 2,461
Georgia State Private College
& Universities Facilities
Authority, Mercer
University Project, RB,
6.400%, 11/01/11, MBIA, ETM 1,675 1,898
Gwinnett County Development
Authority, Public Schools
Project, COP, 5.250%,
01/01/21, Callable 01/01/14
@ 100, MBIA 2,910 3,103
Gwinnett County Development
Authority, Public Schools
Project, COP, 5.250%,
01/01/25, Callable 01/01/14
@ 100, MBIA 1,500 1,587
Gwinnett County Hospital
Authority, Gwinnett
Hospital Systems Project,
Ser B, RB, 5.000%,
10/01/24, Callable 10/01/14
@ 100 1,250 1,295
</Table>
<Table>
<Caption>
- -------------------------------------------------------
Shares or
Principal
Amount Value
- -------------------------------------------------------
GEORGIA--CONTINUED
Gwinnett County School
District, Ser B, GO,
6.400%, 02/01/07 $ 1,500 $ 1,596
Heard County Development
Authority, Pollution
Control, RB, 2.500%,
09/01/29 (b) 659 659
Henry County Hospital
Authority, Henry Medical
Center Project, RB, 5.500%,
07/01/07, Prerefunded @
102, AMBAC 1,640 1,763
Henry County Water & Sewer,
RB, 6.150%, 02/01/20, MBAC 2,100 2,526
Henry County Water & Sewer,
RB, 5.625%, 02/01/30,
Callable 02/01/10 @ 101,
FGIC 1,750 1,945
Jackson County Industrial
Development Authority,
Economic Development
Project, RB, 5.000%,
04/01/23, Callable 04/01/15
@ 100, MBIA 1,250 1,306
Metropolitan Atlanta Rapid
Transit Authority, Ser E,
RB, 7.000%, 07/01/11, ETM 3,595 4,172
Metropolitan Atlanta Rapid
Transit Authority, Ser N,
RB, 6.000%, 07/01/07 2,090 2,224
Milledgeville-Baldwin County
Development Authority,
Georgia College & State
University Foundation, RB,
6.000%, 09/01/33, Callable
09/01/14 @ 101 2,355 2,499
Newnan Hospital Authority,
Newnan Hospital Project,
RB, 5.500%, 01/01/16,
Callable 01/01/13 @ 100,
MBIA 2,435 2,652
Newnan Hospital Authority,
Newnan Hospital Project,
RB, 5.500%, 01/01/17,
Callable 01/01/13 @ 100,
MBIA 2,570 2,789
</Table>
36
SCHEDULE OF PORTFOLIO INVESTMENTS
STI CLASSIC FIXED INCOME FUNDS March 31, 2005 (Amounts in thousands, except
shares)
GEORGIA TAX-EXEMPT BOND FUND -- CONCLUDED
<Table>
<Caption>
- -------------------------------------------------------
Shares or
Principal
Amount Value
- -------------------------------------------------------
GEORGIA--CONTINUED
Newton County Water
Authority, RB, 5.000%,
07/01/23, Callable 07/01/14
@ 100, MBIA $ 2,475 $ 2,589
Oconee County Industrial
Development Authority, OIIT
Project, RB, 5.250%,
07/01/23, Callable 07/01/13
@ 100 1,295 1,362
Paulding County School
District, GO, 6.000%,
02/01/10, MBIA 1,000 1,117
Paulding County School
District, Ser A, GO,
6.625%, 02/01/07 1,000 1,066
Paulding County School
District, Ser A, GO,
6.625%, 02/01/08 525 575
Upper Oconee Basin Water
Authority, RB, 5.000%,
07/01/26, Callable 07/01/15
@ 100, MBIA 2,000 2,083
Valdosta & Lowndes County
Hospital Authority, South
Georgia Medical Center
Project, RB, 5.250%,
10/01/27, Callable 10/01/12
@ 101, AMBAC 1,110 1,176
Vidalia Water & Sewer, RB,
6.000%, 07/01/07, ETM 605 646
Walker, Dade & Catoosa
Counties, Hutcheson Medical
Project, Ser A, RB, 5.500%,
10/01/08, Callable 10/01/07
@ 102, FSA 1,370 1,469
--------
98,372
--------
- -------------------------------------------------------
Shares or
Principal
Amount Value
- -------------------------------------------------------
GUAM (1.2%)
Guam International Airport
Authority, Ser C, RB, AMT,
5.000%, 10/01/06, MBIA $ 1,250 $ 1,288
--------
PUERTO RICO (5.8%)
Puerto Rico Commonwealth
Public Buildings Authority,
Government Facilities, Ser
I, RB, 5.500%, 07/01/22,
Callable 07/01/14 @ 100 3,000 3,244
Puerto Rico Commonwealth,
Highway & Transportation
Authority, Ser AA, RB,
5.000%, 07/01/06 3,000 3,080
--------
6,324
--------
Total Municipal Bonds (Cost
$103,690) 105,984
--------
MONEY MARKET FUNDS (2.5%)
Federated Tax-Free
Obligations Fund 1,994,015 $ 1,994
SEI Tax Exempt Trust,
Institutional Tax Free Fund 774,415 774
--------
Total Money Market Funds (Cost
$2,768) 2,768
--------
Total Investments (Cost
$106,458) (a) -- 99.0% 108,752
Other assets in excess of
liabilities -- 1.0% 1,075
--------
Net Assets -- 100.0% $109,827
========
</Table>
See notes to schedules of portfolio investments and notes to financial
statements.
37
HIGH INCOME FUND
<Table>
<Caption>
- -------------------------------------------------------
Shares or
Principal
Amount Value
- -------------------------------------------------------
CORPORATE BONDS (89.5%)
ADVERTISING (2.0%)
Bear Creek Corp., 9.000%,
03/01/13, Callable 03/01/09
@ 104.50 (d) $ 95 $ 94
R.H. Donnelley Corp., 8.875%,
12/15/10, Callable 12/15/06
@ 104.438 (d) 250 273
R.H. Donnelley Corp.,
10.875%, 12/15/12, Callable
12/15/07 @ 105.44 1,250 1,440
R.H. Donnelley Corp.,
10.875%, 12/15/12, Callable
12/15/07 @ 105.44 (d) 250 288
--------
2,095
--------
AGRICULTURE (1.1%)
Seminis, Inc., 10.250%,
10/01/13, Callable 10/01/08
@ 105.13 1,000 1,180
--------
BUILDING MATERIALS (0.7%)
Ainsworth Lumber Co. Ltd.,
7.250%, 10/01/12, Callable
10/01/08 @ 103.63 (d) 750 735
--------
CHEMICALS (5.0%)
Equistar Chemicals LP,
10.625%, 05/01/11, Callable
05/01/07 @ 105.31 750 842
FMC Corp., 10.250%, 11/01/09,
Callable 11/01/06 @ 105.12 500 558
Huntsman International LLC,
11.625%, 10/15/10, Callable
10/15/07 @ 105.81 (e) 1,300 1,521
Lyondell Chemical Co., Ser A,
9.625%, 05/01/07 500 536
MacDermid, Inc., 9.125%,
07/15/11, Callable 07/15/06
@ 104.56 500 536
Rockwood Specialties Group,
Inc., 7.500%, 11/15/14,
Callable 11/15/09 @ 103.75
(d) 1,250 1,250
--------
5,243
--------
COMMERCIAL SERVICES (4.6%)
Carriage Services, Inc.,
7.875%, 01/15/15, Callable
01/15/10 @ 103.94 (d) 1,600 1,608
</Table>
<Table>
<Caption>
- -------------------------------------------------------
Shares or
Principal
Amount Value
- -------------------------------------------------------
COMMERCIAL SERVICES--CONTINUED
Rural/Metro Corp., 9.875%,
03/15/15, Callable 03/15/10
@ 104.94 (d) $ 1,500 $ 1,541
United Rentals NA, Inc.,
7.750%, 11/15/13, Callable
11/15/08 @ 103.88 (e) 1,750 1,698
--------
4,847
--------
DIVERSIFIED FINANCIAL SERVICES (4.8%)
Consolidated Communication,
Inc., 9.750%, 04/01/12,
Callable 04/01/08 @ 104.88
(d) 250 265
Crystal US Holdings, 9.507%,
10/01/14, Callable 10/01/09
@ 105.25 (c) (d) (g) 1,750 1,225
Rainbow National Services
LLC, 10.375%, 09/01/14,
Callable 09/01/09 @ 105.19
(d) 1,000 1,118
Refco Finance Holdings,
9.000%, 08/01/12, Callable
08/01/08 @ 104.50 (d) 170 180
RMCC Acquisition Co., 9.500%,
11/01/12, Callable 11/01/08
@ 104.75 (d) 1,150 1,127
UGS Corp., 10.000%, 06/01/12,
Callable 06/01/08 @ 105 (d) 1,000 1,105
--------
5,020
--------
ELECTRIC (11.0%)
Aquila, Inc., 14.875%,
07/01/12 1,650 2,260
Calpine Generating Co.,
11.500%, 04/01/11 1,000 930
Edison Mission Energy,
10.000%, 08/15/08 1,000 1,111
FPL Energy National Wind,
6.125%, 03/25/19 (d) 250 248
Kansas Gas & Electric Co.,
8.290%, 03/29/16, Callable
05/27/05 @ 103.32 500 517
Mission Energy Holdings,
13.500%, 07/15/08 1,500 1,800
MSW Energy Holding Co.,
8.500%, 09/01/10, Callable
09/01/07 @ 104.25 250 263
</Table>
38
SCHEDULE OF PORTFOLIO INVESTMENTS
STI CLASSIC FIXED INCOME FUNDS March 31, 2005 (Amounts in thousands, except
shares)
HIGH INCOME FUND -- CONTINUED
<Table>
<Caption>
- -------------------------------------------------------
Shares or
Principal
Amount Value
- -------------------------------------------------------
ELECTRIC--CONTINUED
MSW Energy Holdings, Ser B,
7.375%, 09/01/10, Callable
09/01/07 @ 103.69 $ 500 $ 508
PSEG Energy Holdings,
10.000%, 10/01/09 1,070 1,201
Reliant Energy, Inc., 6.750%,
12/15/14, Callable 12/15/09
@ 103.38 2,100 1,957
Sithe/Independence Funding
Corp., Ser A, 9.000%,
12/30/13 750 837
--------
11,632
--------
ELECTRONICS (0.8%)
Sanmina-SCI Corp., 10.375%,
01/15/10, Callable 01/15/07
@ 105.19 750 840
--------
ENTERTAINMENT (1.8%)
Argosy Gaming Co., 9.000%,
09/01/11, Callable 09/01/06
@ 104.50 1,000 1,094
WMG Holdings Corp., 9.530%,
12/15/14, Callable 12/15/09
@ 104.75 (c) (d) (g) 1,100 759
--------
1,853
--------
ENVIRONMENT CONTROL (1.5%)
Allied Waste Industries,
9.250%, 05/01/21 1,500 1,523
--------
FOOD (5.8%)
Merisant Co., 10.250%,
07/15/13, Callable 07/15/08
@ 104.75 (d) 1,650 1,419
PSF Group Holdings, Inc.,
9.250%, 06/15/11, Callable
06/15/06 @ 104.63 2,825 3,029
Stater Brothers Holdings,
Inc., 8.125%, 06/15/12,
Callable 06/15/08 @ 104.06 500 483
Swift & Co., 12.500%,
01/01/10, Callable 10/01/06
@ 106.25 1,000 1,128
--------
6,059
--------
FOREST PRODUCTS & PAPER (5.8%)
Appleton Papers, Inc.,
8.125%, 06/15/11, Callable
06/15/08 @ 104.06 500 516
</Table>
<Table>
<Caption>
- -------------------------------------------------------
Shares or
Principal
Amount Value
- -------------------------------------------------------
FOREST PRODUCTS & PAPER--CONTINUED
Appleton Papers, Inc., Ser B,
9.750%, 06/15/14, Callable
06/15/09 @ 104.88 $ 1,500 $ 1,568
Georgia-Pacific Corp.,
9.500%, 12/01/11 1,500 1,770
Neenah Paper, Inc., 7.375%,
11/15/14, Callable 11/15/09
@ 103.69 (d) 500 480
Tembec Industries, Inc.,
8.500%, 02/01/11 1,820 1,724
--------
6,058
--------
HEALTHCARE - PRODUCTS (3.0%)
MQ Associates, Inc., 14.345%,
08/15/12, Callable 08/15/08
@ 109 (c) (g) 2,875 1,638
Universal Hospital Services,
Inc., 10.125%, 11/01/11,
Callable 11/01/07 @ 105.06 1,500 1,538
--------
3,176
--------
HEALTHCARE - SERVICES (11.3%)
Ardent Health Services LLC,
10.000%, 08/15/13, Callable
08/15/08 @ 105 1,750 2,074
DaVita, Inc., 7.250%,
03/15/15, Callable 03/15/10
@ 103.63 (d) 410 402
HealthSouth Corp., 10.750%,
10/01/08, Callable 10/01/25
@ 103.58 2,250 2,305
Pacificare Health Systems,
Inc., 10.750%, 06/01/09,
Callable 06/01/06 @ 105.38 975 1,077
Select Medical Corp., 7.625%,
02/01/15, Callable 02/01/10
@ 103.81 (d) 700 700
Tenet Healthcare Corp,
9.250%, 02/01/15 (d) 2,000 1,995
Tenet Healthcare Corp.,
9.875%, 07/01/14 (d) 550 572
United Surgical Partners,
Inc., 10.000%, 12/15/11,
Callable 12/15/06 @ 105 710 783
US Oncology, Inc., 10.750%,
08/15/14, Callable 08/15/09
@ 105.38 (d) 1,900 2,090
--------
11,998
--------
</Table>
39
<Table>
<Caption>
- -------------------------------------------------------
Shares or
Principal
Amount Value
- -------------------------------------------------------
HOLDING COMPANIES-DIVERSIFIED (0.5%)
Leucadia National Corp.,
7.000%, 08/15/13 $ 500 $ 499
--------
INSURANCE (2.5%)
AFC Capital Trust I, Ser B,
8.207%, 02/03/27 (g) 1,000 1,062
Fairfax Financial Holdings
Ltd., 8.300%, 04/15/26 1,100 1,001
Markel Capital Trust I, Ser
B, 8.710%, 01/01/46,
Callable 01/01/07 @ 104.36 500 534
--------
2,597
--------
LODGING (0.3%)
Mandalay Resort Group, Ser B,
10.250%, 08/01/07 250 272
--------
MACHINERY DIVERSIFIED (1.5%)
NMGH Holding Co., 10.000%,
05/15/09, Callable 05/15/06
@ 105 1,500 1,616
--------
MEDIA (6.6%)
Dex Media, Inc., 8.502%,
11/15/13, Callable 11/15/08
@ 104.50 (c) (g) 1,500 1,140
EchoStar DBS Corp., 6.375%,
10/01/11 500 490
Houghton Mifflin Co.,
12.554%, 10/15/13 (c) (g) 2,500 1,738
Kabel Deutschland Gmbh,
10.625%, 07/01/14, Callable
07/01/09 @ 105.31 (d) 2,000 2,209
Mediacom Corp., 9.500%,
01/15/13, Callable 01/15/06
@ 104.75 (e) 1,325 1,322
--------
6,899
--------
METAL FABRICATE/HARDWARE (1.4%)
Mueller Holdings, Inc.,
11.145%, 04/15/14 (c) (g) 2,100 1,449
--------
MISCELLANEOUS MANUFACTURER (0.3%)
Koppers, Inc., 9.875%,
10/15/13, Callable 10/15/08
@ 104.94 250 279
--------
OFFICE/BUSINESS EQUIPMENT (2.1%)
Xerox Corp., 9.750%, 01/15/09 2,000 2,255
--------
</Table>
<Table>
<Caption>
- -------------------------------------------------------
Shares or
Principal
Amount Value
- -------------------------------------------------------
OIL & GAS (1.6%)
AmeriGas Partners/Eagle
Finance, Ser B, 8.875%,
05/20/11, Callable 05/20/06
@ 104.40 $ 500 $ 530
Chesapeake Energy Corp.,
9.000%, 08/15/12, Callable
08/15/07 @ 104.50 1,000 1,104
--------
1,634
--------
PACKAGING & CONTAINERS (2.7%)
AEP Industries, Inc., 7.875%,
03/15/13, Callable 03/15/09
@ 103.94 (d) 110 110
Berry Plastics Corp.,
10.750%, 07/15/12, Callable
07/15/07 @ 105.38 500 564
Crown Euro Holdings SA,
9.500%, 03/01/11, Callable
03/01/07 @ 104.75 500 549
Plastipak Holdings, Inc.,
10.750%, 09/01/11, Callable
09/01/06 @ 105.38 1,000 1,109
Stone Container Corp.,
9.250%, 02/01/08 500 533
--------
2,865
--------
PIPELINES (2.9%)
Dynegy Holdings, Inc.,
10.125%, 07/15/13, Callable
07/15/08 @ 105.06 (d) 2,750 2,998
--------
REAL ESTATE (0.4%)
CB Richard Ellis Group, Inc.,
9.750%, 05/15/10, Callable
05/15/07 @ 104.88 413 467
--------
REITS (0.3%)
Host Marriott LP, Ser G,
9.250%, 10/01/07 250 268
--------
RETAIL (3.0%)
Toys "R" Us, Inc., 7.625%,
08/01/11 3,050 2,867
United Auto Group, Inc.,
9.625%, 03/15/12, Callable
03/15/07 @ 104.81 250 264
--------
3,131
--------
TELECOMMUNICATIONS (4.2%)
Cincinnati Bell, Inc.,
8.375%, 01/15/14, Callable
01/15/09 @ 104.19 (e) 750 739
</Table>
40
SCHEDULE OF PORTFOLIO INVESTMENTS
STI CLASSIC FIXED INCOME FUNDS March 31, 2005 (Amounts in thousands, except
shares)
HIGH INCOME FUND -- CONCLUDED
<Table>
<Caption>
- -------------------------------------------------------
Shares or
Principal
Amount Value
- -------------------------------------------------------
TELECOMMUNICATIONS--CONTINUED
Citizens Communications Co.,
9.250%, 05/15/11 $ 1,000 $ 1,094
PanAmSat Holding Corp.,
9.000%, 08/15/14, Callable
08/15/09 @ 104.50 1,450 1,529
Rogers Wireless, Inc.,
7.250%, 12/15/12 185 189
Rogers Wireless, Inc.,
6.375%, 03/01/14 250 243
Zeus Special Subsidiary Ltd.,
10.204%, 02/01/15, Callable
02/01/10 @ 104.63 (c) (d)
(g) 1,000 633
4,427
--------
Total Corporate Bonds (Cost
$93,944) 93,915
--------
PREFERRED STOCK (2.3%)
MEDIA (2.3%)
Primedia, Inc., Ser H 25,000 2,400
--------
Total Preferred Stock (Cost
$2,375) 2,400
--------
YANKEE DOLLAR (3.4%)
FOOD (1.0%)
Burns, Philp Capital
Property, 9.750%, 07/15/12,
Callable 07/15/07 @ 104.88 1,000 1,090
--------
TELECOMMUNICATIONS (1.0%)
National Cable PLC, 7.660%,
10/15/12, Callable 04/15/05
@ 103 (b) (d) 1,000 1,030
--------
</Table>
<Table>
<Caption>
- -------------------------------------------------------
Shares or
Principal
Amount Value
- -------------------------------------------------------
TRANSPORTATION (1.4%)
Ultrapetrol Ltd., 9.000%,
11/24/14, Callable 11/24/09
@ 104.50 (d) 1,500 $ 1,395
--------
Total Yankee Dollar (Cost
$3,526) 3,515
--------
SHORT-TERM INVESTMENTS (4.9%)
CSFB Enhanced Liquidity
Portfolio (f) 5,129,330 5,129
--------
Total Short-Term Investments
(Cost $5,129) 5,129
--------
REPURCHASE AGREEMENTS (4.4%)
Merrill Lynch & Co., Inc.,
2.820% dated 03/31/05, to
be repurchased 04/01/05,
repurchase price $4,656,950
(collateralized by U.S.
Government Agencies,
4.5000%, due 02/01/35;
total market value
$4,750,639) $ 4,657 4,657
--------
Total Repurchase Agreements
(Cost $4,657) 4,657
--------
Total Investments (Cost
$109,631) (a) -- 104.5% 109,616
--------
Liabilities in excess of other
assets -- (4.5)% (4,712)
--------
Net Assets -- 100.0% $104,904
========
</Table>
See notes to schedules of portfolio investments and notes to financial
statements.
41
INVESTMENT GRADE BOND FUND
<Table>
<Caption>
- -------------------------------------------------------
Shares or
Principal
Amount Value
- -------------------------------------------------------
ASSET BACKED SECURITIES (0.4%)
BANKS (0.3%)
Wells Fargo, Ser 2003-J,
Cl 1A4, 4.625%,
10/25/33 (b) $ 2,000 $ 1,879
---------
DIVERSIFIED FINANCIAL SERVICES (0.1%)
Citibank Credit Card
Issuance Trust, Ser
2003, Cl A7, 4.150%,
07/07/17 1,000 938
---------
Total Asset Backed
Securities (Cost $2,856) 2,817
---------
CORPORATE BONDS (20.2%)
AIRLINES (0.5%)
Southwest Airlines Co.,
5.125%, 03/01/17 3,565 3,346
---------
AUTO MANUFACTURERS (1.4%)
DaimlerChrysler NA
Holdings, 8.500%,
01/18/31 1,925 2,323
Ford Motor Co., 7.450%,
07/16/31 (e) 7,205 6,517
---------
8,840
---------
BANKS (0.7%)
Bank of America Corp.,
7.400%, 01/15/11 3,885 4,380
---------
BUILDING MATERIALS (0.3%)
American Standard, Inc.,
7.625%, 02/15/10 1,570 1,748
---------
COMPUTERS (0.1%)
NCR Corp., 7.125%,
06/15/09 560 603
---------
DIVERSIFIED FINANCIAL SERVICES (5.7%)
Capital One Financial
Corp., 4.800%, 02/21/12 2,230 2,166
CIT Group, Inc., 5.125%,
09/30/14 3,120 3,080
Citigroup, Inc., 5.125%,
05/05/14 2,175 2,174
Citigroup, Inc., 5.875%,
02/22/33 1,990 2,013
Fund American Cos., Inc.,
5.875%, 05/15/13 4,150 4,214
Goldman Sachs Group, Inc.
(The), 3.875%,
01/15/09 (e) 1,695 1,651
Goldman Sachs Group, Inc.
(The), 4.750%, 07/15/13 3,640 3,501
</Table>
<Table>
<Caption>
- -------------------------------------------------------
Shares or
Principal
Amount Value
- -------------------------------------------------------
DIVERSIFIED FINANCIAL
SERVICES--CONTINUED
HSBC Holdings PLC, 7.625%,
05/17/32 (d) $ 1,935 $ 2,416
John Deere Capital Corp.,
3.900%, 01/15/08 995 980
JPMorgan Chase & Co.,
6.625%, 03/15/12 5,105 5,580
MBNA Corp., 7.500%,
03/15/12 1,165 1,314
MBNA Corp., 6.125%,
03/01/13 2,470 2,606
Merrill Lynch & Co., Inc.,
3.700%, 04/21/08 775 760
Merrill Lynch & Co., Inc.,
5.000%, 01/15/15 2,135 2,069
Morgan Stanley, 5.300%,
03/01/13 2,810 2,826
---------
37,350
---------
ELECTRIC (1.1%)
Dominion Resources, Inc.,
Ser E, 6.750%, 12/15/32 1,155 1,257
Entergy Gulf States, Inc.,
4.875%, 11/01/11,
Callable 11/01/06 @ 100 1,680 1,654
Oncor Electric Delivery
Co., 7.000%, 05/01/32 995 1,147
Pacific Gas & Electric
Co., 6.050%, 03/01/34 3,160 3,245
---------
7,303
---------
ENTERTAINMENT (0.2%)
GTECH Holdings Corp.,
4.750%, 10/15/10 1,065 1,046
---------
FOREST PRODUCTS & PAPER (0.2%)
Weyerhaeuser Co., 7.375%,
03/15/32 850 994
---------
HOME BUILDERS (0.4%)
Lennar Corp., 5.950%,
03/01/13 995 1,024
Pulte Homes, Inc., 4.875%,
07/15/09 1,560 1,539
---------
2,563
---------
INSURANCE (1.0%)
MetLife, Inc., 5.250%,
12/01/06 1,140 1,162
Monumental Global Funding,
5.200%, 01/30/07 (d) 2,565 2,614
</Table>
42
SCHEDULE OF PORTFOLIO INVESTMENTS
STI CLASSIC FIXED INCOME FUNDS March 31, 2005 (Amounts in thousands, except
shares)
INVESTMENT GRADE BOND FUND -- CONTINUED
<Table>
<Caption>
- -------------------------------------------------------
Shares or
Principal
Amount Value
- -------------------------------------------------------
INSURANCE--CONTINUED
Prudential Financial,
Inc., 3.750%, 05/01/08 $ 1,055 $ 1,033
Prudential Financial,
Inc., 5.100%, 09/20/14 1,650 1,634
---------
6,443
---------
INVESTMENT COMPANIES (0.3%)
Credit Suisse First Boston
USA, Inc., 6.500%,
01/15/12 1,950 2,110
---------
LEISURE TIME (0.2%)
Harley Davidson Funding,
3.625%, 12/15/08 (d) 1,155 1,127
---------
LODGING (0.3%)
Harrah's Operating Co.,
Inc., 5.375%, 12/15/13 1,240 1,230
Marriott International,
Inc., Ser C, 7.875%,
09/15/09 425 476
---------
1,706
---------
MEDIA (2.3%)
British Sky Broadcasting
Group PLC, 6.875%,
02/23/09 1,925 2,065
Comcast Cable
Communications, Inc.,
7.125%, 06/15/13 3,550 3,949
Comcast Cable
Communications, Inc.,
7.050%, 03/15/33 480 537
Cox Communications, Inc.,
4.625%, 06/01/13 1,860 1,733
News America Holdings,
Inc., 9.250%, 02/01/13 1,705 2,128
News America Holdings,
Inc., 6.200%,
12/15/34 (d) 1,015 1,004
Time Warner, Inc., 7.625%,
04/15/31 3,105 3,648
---------
15,064
---------
MINING (0.4%)
Codelco, Inc., 5.500%,
10/15/13 (d) 2,275 2,299
---------
MISCELLANEOUS MANUFACTURER (1.3%)
General Electric Co.,
5.000%, 02/01/13 8,105 8,093
---------
OIL & GAS (0.7%)
Devon Energy Corp.,
10.250%, 11/01/05 255 264
</Table>
<Table>
<Caption>
- -------------------------------------------------------
Shares or
Principal
Amount Value
- -------------------------------------------------------
OIL & GAS--CONTINUED
Devon Financing Corp ULC,
7.875%, 09/30/31 $ 1,190 $ 1,482
Enterprise Products
Operating LP, Ser B,
6.875%, 03/01/33 1,490 1,561
Motiva Enterprises LLC,
5.200%, 09/15/12 (d) 955 967
---------
4,274
---------
PACKAGING & CONTAINERS (0.2%)
Packaging Corp. of
America, 5.750%,
08/01/13 1,280 1,267
---------
PIPELINES (0.9%)
Centerpoint Energy
Resources Corp., Ser B,
7.875%, 04/01/13 2,185 2,533
K N Capital Trust III,
7.630%, 04/15/28 1,770 2,038
Kinder Morgan, Inc.,
7.250%, 03/01/28 850 962
---------
5,533
---------
REITS (0.1%)
Simon Property Group LP,
6.375%, 11/15/07 775 807
---------
RETAIL (0.1%)
Federated Department
Stores, Inc., 6.900%,
04/01/29 800 857
---------
SAVINGS & LOANS (0.2%)
Golden West Financial
Corp., 4.125%, 08/15/07 1,605 1,602
---------
TELECOMMUNICATIONS (1.6%)
Deutsche Telekom
International Finance,
9.250%, 06/01/32 1,140 1,644
SBC Communications, Inc.,
5.625%, 06/15/16 (e) 320 321
SBC Communications, Inc.,
6.450%, 06/15/34 840 874
Sprint Capital Corp.,
8.750%, 03/15/32 3,270 4,243
Telus Corp., 8.000%,
06/01/11 1,560 1,807
</Table>
43
<Table>
<Caption>
- -------------------------------------------------------
Shares or
Principal
Amount Value
- -------------------------------------------------------
TELECOMMUNICATIONS--CONTINUED
Verizon Global Funding
Corp., 7.750%, 12/01/30 $ 1,370 $ 1,656
---------
10,545
---------
Total Corporate Bonds (Cost
$129,721) 129,900
---------
FOREIGN GOVERNMENT BONDS (1.0%)
MEXICO (1.0%)
Mexican United States,
8.300%, 08/15/31 5,420 6,206
---------
Total Foreign Government
Bonds (Cost $5,921) 6,206
---------
PREFERRED STOCKS (0.0%)
SOVEREIGN AGENCY (0.0%)
Tennessee Valley
Authority, Ser D, 5.952%
(b) 5,500 136
---------
Total Preferred Stocks (Cost
$143) 136
---------
U.S. GOVERNMENT AGENCIES (7.5%)
FANNIE MAE (1.5%)
3.250%, 02/15/09 $ 1,000 960
3.800%, 07/14/10, Callable
07/14/05 @ 100 500 481
4.700%, 05/13/13, Callable
05/13/05 @ 100 500 497
5.125%, 01/02/14 500 500
5.500%, 11/08/16, Callable
11/08/06 @ 100 1,250 1,249
6.250%, 02/28/17, Callable
02/28/07 @ 100 600 618
6.200%, 06/13/17, Callable
06/13/07 @ 100 1,000 1,032
5.750%, 11/07/17, Callable
11/07/05 @ 100 2,500 2,501
5.100%, 06/26/18, Callable
04/18/05 @ 100 1,500 1,452
5.500%, 04/23/24, Callable
04/18/05 @ 100 250 243
---------
9,533
---------
FEDERAL HOME LOAN BANK (1.3%)
4.400%, 03/30/11, Callable
03/30/06 @ 100 1,000 979
2.489%, 03/03/08 (b) 2,500 2,498
2.790%, 03/24/08, Callable
06/24/05 @ 100 (b) 2,000 1,973
5.875%, 09/19/17, Callable
04/13/05 @ 100 733 734
</Table>
<Table>
<Caption>
- -------------------------------------------------------
Shares or
Principal
Amount Value
- -------------------------------------------------------
FEDERAL HOME LOAN BANK--CONTINUED
5.250%, 12/10/13, Callable
06/10/05 @ 100 $ 1,250 $ 1,239
5.000%, 05/08/18, Callable
05/08/05 @ 100 (b) 1,000 983
---------
8,406
---------
FREDDIE MAC (2.0%)
7.000%, 05/01/07 8 8
4.050%, 11/17/09, Callable
11/17/05 @ 100 700 687
6.250%, 06/25/10, Callable
06/25/07 @ 100 1,000 1,041
4.650%, 08/27/10, Callable
08/27/05 @ 100 500 496
4.500%, 12/16/10, Callable
12/16/05 @ 100 1,000 979
6.375%, 08/01/11, Callable
08/01/06 @ 100 3,000 3,075
4.650%, 10/10/13, Callable
10/10/06 @ 100 1,000 971
6.000%, 06/27/17, Callable
06/27/07 @ 100 1,000 1,025
5.550%, 10/30/17, Callable
04/13/05 @ 100 1,000 989
5.200%, 03/05/19, Callable
03/05/09 @ 100 1,200 1,185
5.000%, 06/01/19 1,759 1,762
5.000%, 07/01/19 870 871
---------
13,089
---------
GOVERNMENT NATIONAL MORTGAGE ASSOCIATION (2.7%)
7.000%, 04/15/13 390 411
7.000%, 08/15/14 182 192
4.500%, 05/15/19 960 947
4.500%, 05/15/19 926 913
8.500%, 04/15/31 3,109 3,383
7.000%, 05/15/31 118 125
8.000%, 08/15/31 3,928 4,235
8.000%, 09/15/31 3,995 4,307
5.500%, 09/15/32 1,013 1,024
5.500%, 09/15/33 696 703
5.500%, 11/15/33 943 952
---------
17,192
---------
Total U.S. Government
Agencies (Cost $47,918) 48,220
---------
U.S. TREASURY OBLIGATIONS (69.8%)
U.S. TREASURY BONDS (5.3%)
5.375%, 02/15/31 (e) 31,545 34,380
---------
</Table>
44
SCHEDULE OF PORTFOLIO INVESTMENTS
STI CLASSIC FIXED INCOME FUNDS March 31, 2005 (Amounts in thousands, except
shares)
INVESTMENT GRADE BOND FUND -- CONCLUDED
<Table>
<Caption>
- -------------------------------------------------------
Shares or
Principal
Amount Value
- -------------------------------------------------------
U.S. TREASURY INFLATION PROTECTED NOTES/BONDS (11.3%)
1.875%, 07/15/13 $ 50,090 $ 50,967
3.875%, 04/15/29 16,001 22,007
---------
72,974
---------
U.S. TREASURY NOTES (53.2%)
1.625%, 04/30/05 (e) 4,635 4,631
1.250%, 05/31/05 8,000 7,981
3.500%, 11/15/06 (e) 57,560 57,380
3.375%, 02/28/07 (e) 46,105 45,768
3.125%, 05/15/07 (e) 89,695 88,429
3.125%, 04/15/09 (e) 4,485 4,325
6.000%, 08/15/09 (e) 67,105 72,112
4.000%, 03/15/10 (e) 27,945 27,727
4.875%, 02/15/12 (e) 7,855 8,111
3.875%, 02/15/13 (e) 20,935 20,208
4.000%, 02/15/15 (e) 5,765 5,539
---------
342,211
---------
Total U.S. Treasury
Obligations (Cost
$449,695) 449,565
---------
SHORT TERM INVESTMENTS (43.2%)
CSFB Enhanced Liquidity
Portfolio (f) 278,837,137 $ 278,837
---------
Total Short Term Investments
(Cost $278,837) 278,837
---------
</Table>
<Table>
<Caption>
- -------------------------------------------------------
Shares or
Principal
Amount Value
- -------------------------------------------------------
MONEY MARKET FUND (0.0%)
Fifth Third Bank Sweep 1 $ 0(+)
---------
Total Money Market Fund
(Cost $0) 0(+)
---------
REPURCHASE AGREEMENTS (2.0%)
Morgan Stanley, 2.870%,
dated 03/31/05, to be
repurchased on 04/01/05,
repurchase price
$12,959,332
(collateralized by U.S.
Government Agencies,
5.500%, due 03/01/20;
total market value
$13,277,093) $ 12,958 12,958
---------
Total Repurchase Agreements
(Cost $12,958) 12,958
---------
Total Investments (Cost
$928,049) (a) -- 144.1% 928,639
Liabilities in excess of
other assets -- (44.1)% (284,034)
---------
Net Assets -- 100.0% $ 644,605
=========
</Table>
See notes to schedules of portfolio investments and notes to financial
statements.
45
INVESTMENT GRADE TAX-EXEMPT BOND FUND
<Table>
<Caption>
- -------------------------------------------------------
Shares or
Principal
Amount Value
- -------------------------------------------------------
MUNICIPAL BONDS (101.2%)
ALABAMA (10.4%)
Alabama Public School &
College Authority, Capital
Improvements, Ser C, RB,
5.750%, 07/01/17, Callable
07/01/09 @ 101.50 $ 3,950 $ 4,341
Alabama Water Pollution
Control Authority, RB,
5.750%, 08/15/12, Callable
08/15/09 @ 100, AMBAC 5,205 5,681
Auburn University, Ser A,
RB, 6.000%, 06/01/16,
Callable 06/01/11 @ 100,
MBIA 4,060 4,558
Huntsville, Ser A, GO,
5.625%, 05/01/16, Callable
05/01/12 @ 102 2,375 2,639
Huntsville, Ser A, GO,
5.750%, 05/01/19, Callable
05/01/12 @ 102 2,800 3,146
University of Alabama,
Health, Hospital & Nursing
Home Improvements, Ser B,
RB, 2.230%, 09/01/31,
AMBAC (b) 10,000 10,000
--------
30,365
--------
ARIZONA (1.9%)
Arizona State University,
RB, 5.500%, 07/01/15,
Prerefunded 07/01/12 @
100, FGIC 1,665 1,855
Arizona Water Infrastructure
Finance Authority, Water
Quality, Ser A, RB,
5.625%, 10/01/12, Callable
10/01/09 @ 101 3,280 3,599
--------
5,454
--------
CALIFORNIA (6.3%)
California, GO, 5.250%,
02/01/15, Callable
08/01/13 @ 100, MBIA 6,190 6,703
Fresno Unified School
District, Ser A, GO,
6.550%, 08/01/20, Callable
02/01/13 @ 103, MBIA 1,950 2,335
</Table>
<Table>
<Caption>
- -------------------------------------------------------
Shares or
Principal
Amount Value
- -------------------------------------------------------
CALIFORNIA--CONTINUED
Orange County Loma Ridge/
Data Center Project, COP,
6.000%, 06/01/21, Callable
06/01/05 @ 100, AMBAC $ 2,075 $ 2,425
San Diego County & School
District, Ser A, TAN &
RAN, 3.250%, 07/25/05 2,000 2,005
Santa Barbara County, Ser A,
TAN & RAN, 3.000%,
07/26/05 5,000 5,010
--------
18,478
--------
COLORADO (5.1%)
Douglas County School
District No. RE-1, Douglas
& Ebert Counties, GO,
5.750%, 12/15/20, Callable
12/15/14 @ 100, FGIC 2,540 2,875
Metro Wastewater Reclamation
District, RB, 5.450%,
04/01/12, Callable
04/01/08 @ 100 2,570 2,727
Regional Transportation
District, Sales Tax, Ser
B, RB, 5.500%, 11/01/17,
Prerefunded 11/01/12 @
100, AMBAC 2,655 2,965
Westminster, Sales & Use Tax
Project, Ser A, RB,
5.600%, 12/01/16, Callable
12/01/07 @ 102 5,940 6,405
--------
14,972
--------
CONNECTICUT (1.5%)
University of Connecticut,
Ser A, GO, 5.000%,
01/15/13, MBIA 2,000 2,173
University of Connecticut,
Ser A, GO, 5.000%,
01/15/16, Callable
01/15/14 @ 100, MBIA 2,000 2,150
--------
4,323
--------
FLORIDA (6.6%)
Florida State Board of
Education, Capital Outlay,
Public Education, Ser C,
GO, 5.300%, 06/01/09,
Callable 6/01/05 @ 101 7,395 7,506
</Table>
46
SCHEDULE OF PORTFOLIO INVESTMENTS
STI CLASSIC FIXED INCOME FUNDS March 31, 2005 (Amounts in thousands, except
shares)
INVESTMENT GRADE TAX-EXEMPT BOND FUND -- CONTINUED
<Table>
<Caption>
- -------------------------------------------------------
Shares or
Principal
Amount Value
- -------------------------------------------------------
FLORIDA--CONTINUED
Florida State Department of
Transportation, GO,
5.000%, 07/01/20, Callable
07/01/12 @ 101 $ 3,000 $ 3,146
Lee County Transportation
Facilities, Ser A, RB,
5.000%, 10/01/27, Callable
10/01/14 @ 100, AMBAC 1,000 1,038
Miami-Dade County School
District, GO, 5.000%,
08/01/05, MBIA 4,420 4,459
Palm Beach County School
Board, Ser C, COP, 5.500%,
08/01/15, FSA 2,825 3,148
--------
19,297
--------
ILLINOIS (3.7%)
Chicago Board of Education,
Ser B, GO, 2.300%,
03/01/32, FSA (b) 7,560 7,560
Chicago O'Hare International
Airport, 3rd Lien Ser A,
RB, 5.000%, 01/01/09, MBIA 3,000 3,181
--------
10,741
--------
IOWA (0.8%)
Des Moines Public Parking
System, Ser A, RB, 6.375%,
06/01/18, Callable
06/01/10 @ 100, FGIC 2,005 2,265
--------
LOUISIANA (2.1%)
East Baton Rouge Parish
Recreation & Park
Commission, GO, 5.000%,
05/01/22, Callable
05/01/15 @ 100, FSA 2,900 3,016
East Baton Rouge Parish
Recreation & Park
Commission, GO, 5.000%,
05/01/23, Callable
05/01/15 @100, FSA 3,050 3,163
--------
6,179
--------
MASSACHUSETTS (0.1%)
Massachusetts State Water
Pollution Abatement Trust,
Pool Program, Ser 6, RB,
5.625%, 08/01/16, Callable
08/01/10 @ 101 145 160
--------
</Table>
<Table>
<Caption>
- -------------------------------------------------------
Shares or
Principal
Amount Value
- -------------------------------------------------------
MICHIGAN (5.0%)
Detroit Sewer Disposal
System, Ser B, RB, 2.190%,
07/01/23, MBIA (b) $ 11,000 $ 11,000
Michigan Municipal Bond
Authority, Clean Water
State Revolving Fund, RB,
5.375%, 10/01/17, Callable
10/01/12 @ 100 3,300 3,592
--------
14,592
--------
MINNESOTA (1.8%)
Farmington Independent
School District No. 192,
School Building
Improvements, Ser B, GO,
5.000%, 02/01/24, Callable
02/01/15 @ 100, FSA 5,000 5,241
--------
MISSISSIPPI (0.9%)
Jackson Public School
District, Limited Tax
Notes, Ser B, GO, 5.750%,
10/01/15, Callable
10/01/10 @ 100, AMBAC 2,275 2,510
--------
MISSOURI (3.3%)
Missouri State Highways &
Transit Commission, State
Road, Ser A, RB, 5.625%,
02/01/18, Callable
02/01/11 @ 100 8,885 9,716
--------
NEW JERSEY (5.7%)
Elizabeth, GO, 5.250%,
08/15/08, MBIA 2,595 2,776
Garden State Preservation
Trust, Open Space &
Farmland Preservation, Ser
A, RB, 5.800%, 11/01/20,
Callable 11/01/15 @ 100,
FSA 10,000 11,134
New Jersey Economic
Development Authority,
School Facilities
Construction, Ser K, RB,
5.250%, 12/15/17, Callable
12/15/15 @ 100, FGIC 2,500 2,738
--------
16,648
--------
</Table>
47
<Table>
<Caption>
- -------------------------------------------------------
Shares or
Principal
Amount Value
- -------------------------------------------------------
NEW YORK (17.4%)
Buffalo, Ser D, GO, 5.500%,
12/15/14, Callable
12/15/11 @ 100, FGIC $ 1,075 $ 1,183
Metropolitan Transportation
Authority, Ser G-1, RB,
2.240%, 11/01/26, AMBAC
(b) 12,700 12,700
New York Local Government
Assistance Corp., Ser
A-BV, RB, 2.200%,
04/01/21, FGIC (b) 7,000 7,000
New York State Dormitory
Authority, Mental Health
Services Facilities
Improvements, Ser C, RB,
5.000%, 08/15/15, Callable
02/15/15 @ 100, FGIC 3,585 3,862
New York State Dormitory
Authority, Mental Health
Services Facilities
Improvements, Ser D, RB,
5.000%, 02/15/15, FGIC 3,000 3,236
New York, Ser H, GO, 5.000%,
08/01/12 2,000 2,129
Tobacco Settlement Financing
Corp., Ser A1, RB, 5.000%,
06/01/10, Callable
06/01/05 @ 100 3,215 3,227
Tobacco Settlement Financing
Corp., Ser A1, RB, 5.250%,
06/01/13, Callable
06/01/08 @ 100 10,000 10,603
Tobacco Settlement Financing
Corp., Ser C1, RB, 5.250%,
06/01/12, Callable
06/01/07 @ 100 6,720 7,004
--------
50,944
--------
OHIO (2.3%)
Ohio State Water Development
Authority, Fresh Water
Service Project, RB,
5.700%, 06/01/08, Callable
06/01/05 @ 102, AMBAC 1,520 1,557
</Table>
<Table>
<Caption>
- -------------------------------------------------------
Shares or
Principal
Amount Value
- -------------------------------------------------------
OHIO--CONTINUED
Ohio State Water Development
Authority, Fresh Water
Improvement Project, RB,
5.375%, 06/01/17,
Prerefunded 06/01/12 @ 100 $ 1,900 $ 2,101
Ohio State Water Development
Authority, Pollution
Control Facilities Water
Quality Service Project,
RB, 5.300%, 06/01/10,
Prerefunded 06/01/05 @
101, MBIA 3,000 3,045
--------
6,703
--------
OKLAHOMA (0.9%)
Oklahoma State Water
Resource Board, Revolving
Fund, RB, 5.000%, 04/01/13 2,500 2,714
--------
PUERTO RICO (11.8%)
Puerto Rico Electric Power
Authority, Ser RR, RB,
5.000%, 07/01/23, Callable
07/01/15 @ 100, FGIC 6,500 6,879
Puerto Rico Commonwealth,
Government Development
Bank, RB, 2.190%,
12/01/15, MBIA (b) 9,000 9,000
Puerto Rico Commonwealth,
Highway & Transportation
Authority, RB, 5.250%,
07/01/15, Callable
07/01/13 @ 100, FGIC 5,000 5,479
Puerto Rico Commonwealth,
Highway & Transportation
Authority, RB, 5.250%,
07/01/17, Callable
07/01/13 @ 100, FGIC 5,260 5,738
Puerto Rico Commonwealth,
Highway & Transportation
Authority, Ser G, RB,
5.250%, 07/01/15, Callable
07/01/13 @ 100, FGIC 2,720 2,981
</Table>
48
SCHEDULE OF PORTFOLIO INVESTMENTS
STI CLASSIC FIXED INCOME FUNDS March 31, 2005 (Amounts in thousands, except
shares)
INVESTMENT GRADE TAX-EXEMPT BOND FUND -- CONCLUDED
<Table>
<Caption>
- -------------------------------------------------------
Shares or
Principal
Amount Value
- -------------------------------------------------------
PUERTO RICO--CONTINUED
Puerto Rico Municipal
Finance Agency, Ser A, RB,
5.250%, 08/01/14, Callable
08/01/12 @ 100, FSA $ 4,000 $ 4,368
--------
34,445
--------
SOUTH CAROLINA (3.6%)
Clemson University, RB,
6.250%, 05/01/15, Callable
05/01/09 @ 101, AMBAC 2,725 3,036
Rock Hill Utility System,
Ser B, RB, 2.300%,
01/01/25, FSA (b) 7,500 7,500
--------
10,536
--------
TEXAS (8.35%)
Aldine Independent School
District, GO, 5.250%,
02/15/16, Callable
02/15/14 @ 100, PSF 5,425 5,868
Coastal Bend Health
Facilities Development
Corp., Incarnate Word
Health Services, Ser B,
RB, 2.280%, 08/15/28,
AMBAC (b) 5,925 5,925
Irving Waterworks & Sewer,
RB, 5.950%, 06/15/19,
Callable 06/15/09 @ 100.50 1,460 1,600
Texas State, TAN & RAN,
3.000%, 08/31/05 11,000 11,030
--------
24,423
--------
</Table>
<Table>
<Caption>
- -------------------------------------------------------
Shares or
Principal
Amount Value
- -------------------------------------------------------
VIRGINIA (1.86%)
Loudoun County, Ser A, GO,
5.000%, 07/01/15 $ 5,000 $ 5,456
--------
Total Municipal Bonds (Cost
$294,787) 296,162
--------
MONEY MARKET FUNDS (9.42%)
Federated Tax-Free
Obligations Fund 14,216,583 $ 14,216
SEI Tax Exempt Trust,
Institutional Tax Free
Fund, A Shares 13,334,865 13,335
--------
Total Money Market Funds (Cost
$27,551) 27,551
--------
Total Investments (Cost
$322,338) (a) -- 110.64% 323,713
Liabilities in excess of other
assets -- (10.64)% (31,129)
--------
Net Assets -- 100.00% $292,584
========
</Table>
See notes to schedules of portfolio investments and notes to financial
statements.
49
LIMITED-TERM FEDERAL MORTGAGE SECURITIES FUND
<Table>
<Caption>
- --------------------------------------------------------
Shares or
Principal
Amount Value
- --------------------------------------------------------
U.S. GOVERNMENT AGENCIES (97.8%)
FANNIE MAE (65.3%)
5.500%, 02/15/06 (e) $ 19,750 $ 20,057
5.250%, 06/15/06 7,000 7,117
6.500%, 12/01/08 4,080 4,268
7.500%, 09/01/12 7,714 8,111
6.500%, 06/01/13 734 767
6.000%, 09/01/13 1,450 1,499
4.000%, 11/01/13 11,907 11,713
4.500%, 03/01/14 20,071 19,869
6.000%, 09/01/16 9,737 10,064
6.500%, 10/01/16 1,246 1,302
5.500%, 12/01/16 3,953 4,032
8.500%, 04/01/17 54 59
6.000%, 08/01/17 2,796 2,889
6.000%, 10/01/17 4,841 5,002
6.000%, 10/01/17 1,847 1,908
6.000%, 11/01/17 6,968 7,200
4.500%, 05/01/19 11,231 10,990
6.000%, 05/01/19 5,977 6,178
6.000%, 06/01/19 7,053 7,290
5.500%, 07/01/19 10,314 10,518
5.500%, 07/01/19 4,003 4,083
5.500%, 08/01/19 4,210 4,293
5.500%, 10/01/19 5,713 5,826
5.500%, 03/01/24 8,573 8,654
7.000%, 05/01/32 8,368 8,828
6.500%, 12/01/32 5,581 5,802
5.500%, 04/01/33 5,987 6,001
3.171%, 05/01/33 (b) 8,184 8,245
4.126%, 05/01/33 (b) 8,423 8,379
4.026%, 06/01/33 (b) 13,187 13,063
4.115%, 08/01/33 (b) 16,953 16,840
6.000%, 11/01/33 2,959 3,025
6.000%, 04/01/34 15,673 16,024
3.247%, 05/01/34 (b) 12,583 12,430
4.590%, 05/01/34 (b) 3,730 3,705
4.034%, 06/01/34 (b) 6,814 6,737
4.280%, 06/01/34 (b) 6,010 5,940
7.000%, 06/01/34 8,848 9,324
6.000%, 02/01/35 4,522 4,624
--------
292,656
--------
FREDDIE MAC (24.2%)
2.150%, 06/02/06 (e) 13,000 12,757
2.478%, 05/15/10 (b) 8,000 7,774
4.500%, 06/01/13 26,201 25,858
7.000%, 11/01/16 1,177 1,237
6.500%, 02/01/17 3,237 3,386
6.000%, 07/01/17 3,875 4,005
4.500%, 11/01/18 8,299 8,141
6.000%, 12/01/31 20,997 21,519
6.500%, 09/01/32 4,953 5,148
3.344%, 07/01/33 (b) 5,662 5,720
</Table>
<Table>
<Caption>
- --------------------------------------------------------
Shares or
Principal
Amount Value
- --------------------------------------------------------
FREDDIE MAC--CONTINUED
6.000%, 01/01/34 $ 5,405 $ 5,534
4.258%, 05/01/34 7,707 7,434
--------
108,513
--------
GOVERNMENT NATIONAL MORTGAGE ASSOCIATION (8.3%)
9.000%, 11/15/17 102 111
8.000%, 06/15/30 612 660
8.000%, 09/15/30 324 349
8.000%, 12/15/30 98 105
8.000%, 12/15/30 997 1,075
8.500%, 04/15/31 375 408
7.000%, 07/15/31 520 550
8.000%, 08/15/31 736 793
7.000%, 09/15/31 1,235 1,306
8.000%, 09/15/31 1,435 1,548
6.000%, 12/15/31 2,652 2,731
5.500%, 12/15/32 5,237 5,293
3.750%, 01/20/34 22,527 22,288
--------
37,217
--------
Total U.S. Government Agencies
(Cost $442,926) 438,386
--------
SHORT TERM INVESTMENTS (7.5%)
CSFB Enhanced Liquidity
Portfolio (f) 33,703,125 33,703
--------
Total Short Term Investments
(Cost $33,703) 33,703
--------
REPURCHASE AGREEMENTS (2.2%)
Merrill Lynch & Co., Inc.,
2.820%, dated 03/31/05, to
be repurchased 04/01/05,
repurchase price $4,002,117
(collateralized by U.S.
Government Agencies, 5.500%,
due 03/01/25; total market
value $4,083,715) $ 4,002 4,002
Morgan Stanley, 2.870%, dated
03/31/05, to be repurchased
04/01/05, repurchase price
$5,765,380 (collateralized
by U.S. Government Agencies,
5.000%, due 01/01/19; total
market value $5,997,255) 5,765 5,765
--------
Total Repurchase Agreements
(Cost $9,767) 9,767
--------
Total Investments (Cost
$486,396) (a) -- 107.5% 481,856
Liabilities in excess of other
assets -- (7.5)% (33,535)
--------
Net Assets -- 100.0% $448,321
========
</Table>
See notes to schedules of portfolio investments and notes to financial
statements.
50
SCHEDULE OF PORTFOLIO INVESTMENTS
STI CLASSIC FIXED INCOME FUNDS March 31, 2005 (Amounts in thousands, except
shares)
MARYLAND MUNICIPAL BOND FUND
<Table>
<Caption>
- -------------------------------------------------------
Shares or
Principal
Amount Value
- -------------------------------------------------------
MUNICIPAL BONDS (100.0%)
MARYLAND (95.0%)
Annapolis Public Improvement,
GO, 5.000%, 04/01/08 $ 1,000 $ 1,057
Annapolis Special Obligation,
Park Place Project, Ser A,
RB, 5.350%, 07/01/34,
Callable 01/01/15 @ 101 500 494
Anne Arundel County Special
Obligation, Arundel Mills
Project, RB, 5.125%,
07/01/22, Callable 07/01/14
@ 100, LOC: County
Guaranteed 1,000 1,067
Baltimore County, Oak Crest
Village, Inc. Project, Ser
A, RB, 2.290%, 01/01/29,
LOC: Wachovia Bank N.A. (b) 300 300
Baltimore County, Pension
Funding, GO, 4.500%,
06/01/09 1,000 1,052
Baltimore Parking System
Facilities, Ser A, RB,
5.900%, 07/01/13, FGIC 900 1,027
Baltimore Pollution Control,
General Motors Corp.
Project, RB, 5.350%,
04/01/08 410 416
Baltimore, GO, 7.000%,
10/15/10, MBIA 1,365 1,610
Calvert County Consolidated
Public Improvement Project,
GO, 5.000%, 07/15/08 1,000 1,061
Frederick County Public
Facilities, GO, 5.250%,
07/01/11, Callable 07/01/09
@ 101 1,000 1,077
Howard County Consolidated
Public Improvement, Ser A,
GO, 5.250%, 08/15/14,
Callable 02/15/12 @ 100 1,205 1,311
Howard County, Metropolitan
District Project, Ser A, GO,
5.250%, 08/15/13, Callable
02/15/12 @ 100 1,100 1,197
</Table>
<Table>
<Caption>
- -------------------------------------------------------
Shares or
Principal
Amount Value
- -------------------------------------------------------
MARYLAND--CONTINUED
Maryland State Community
Development Administration,
Department of Housing &
Community Development,
People's Resource Center
Project, Ser 1, RB, 5.600%,
04/01/18, Callable 04/01/07
@ 101.50, MHF/FHA/INS $ 275 $ 286
Maryland State Community
Development Administration,
Department of Housing &
Community Development,
People's Resource Center
Project, Ser 2, RB, AMT,
4.700%, 04/01/11 1,000 1,035
Maryland State Community
Development Administration,
Department of Housing &
Community Development,
People's Resource Center
Project, Ser 2001B, RB, AMT,
4.100%, 07/01/08, FHA/
GNMA/HUD 285 290
Maryland State Community
Development Administration,
Department of Housing &
Community Development,
People's Resource Center
Project, Ser E, RB, 5.700%,
09/01/17, Callable 09/01/09
@ 100 900 936
Maryland State Community
Development Administration,
Department of Housing &
Community Development,
People's Resource Center
Project, Ser F, RB, AMT,
5.900%, 09/01/19, Callable
09/01/09 @ 100 1,000 1,032
Maryland State Health & Higher
Educational Facilities
Authority, Calvert Health
Systems Project, RB, 5.500%,
07/01/36, Callable 07/01/14
@ 100 1,000 1,036
</Table>
51
<Table>
<Caption>
- -------------------------------------------------------
Shares or
Principal
Amount Value
- -------------------------------------------------------
MARYLAND--CONTINUED
Maryland State Health & Higher
Educational Facilities
Authority, Carroll County
General Hospital Project,
RB, 6.000%, 07/01/18,
Callable 07/01/12 @ 100 $ 1,035 $ 1,113
Maryland State Health & Higher
Educational Facilities
Authority, Carroll County
General Hospital Project,
RB, 6.000%, 07/01/21,
Callable 07/01/12 @ 100 250 267
Maryland State Health & Higher
Educational Facilities
Authority, Catholic Health
Initiatives Project, Ser A,
RB, 6.000%, 12/01/24, ETM 250 282
Maryland State Health & Higher
Educational Facilities
Authority, Civista Medical
Center Project, RB, 5.000%,
07/01/37, Callable 07/01/14
@ 100, LOC: Radian 1,595 1,616
Maryland State Health & Higher
Educational Facilities
Authority, Goucher College
Project, RB, 5.375%,
07/01/25, Callable 07/01/14
@ 100 565 592
Maryland State Health & Higher
Educational Facilities
Authority, Hebrew Home of
Greater Washington Project,
RB, 5.700%, 01/01/21,
Callable 01/01/12 @ 100 480 507
Maryland State Health & Higher
Educational Facilities
Authority, Hebrew Home of
Greater Washington Project,
RB, 5.700%, 01/01/22,
Callable 01/01/12 @ 100 510 536
Maryland State Health & Higher
Educational Facilities
Authority, John Hopkins
University Project, Ser A,
RB, 5.000%, 07/01/38,
Callable 07/01/14 @ 100 1,000 1,029
</Table>
<Table>
<Caption>
- -------------------------------------------------------
Shares or
Principal
Amount Value
- -------------------------------------------------------
MARYLAND--CONTINUED
Maryland State Health & Higher
Educational Facilities
Authority, Mercy Ridge
Project, Ser B, RB, 5.000%,
04/01/08, Callable 04/01/06
@ 101 $ 300 $ 304
Maryland State Health & Higher
Educational Facilities
Authority, North Arundel
Hospital Association
Project, RB, 6.500%,
07/01/26, Callable 07/01/10
@ 101 400 441
Maryland State Health & Higher
Educational Facilities
Authority, Suburban Hospital
Project, Ser B, RB, 2.350%,
07/01/29, LOC: Manufacturers
& Traders Trust Co. (b) 400 400
Maryland State Health & Higher
Educational Facilities
Authority, Union Hospital of
Cecil County Issue Project,
RB, 5.750%, 07/01/20,
Callable 07/01/12 @ 100 500 534
Maryland State Health & Higher
Educational Facilities
Authority, University of
Maryland Medical System
Project, RB, 6.000%,
07/01/05 100 101
Maryland State Health & Higher
Educational Facilities
Authority, University of
Maryland Medical System
Project, RB, 5.750%,
07/01/21, Callable 07/01/11
@ 100 1,725 1,831
Maryland State & Local
Facilities, Capital
Improvement Project, Ser A,
GO, 5.500%, 08/01/14 1,000 1,134
Maryland State & Local
Facilities Project, Ser 2,
GO, 5.250%, 07/15/12,
Prerefunded 07/15/09 @ 101 1,000 1,090
Maryland State & Local
Facilities Project, Ser 2,
GO, 5.000%, 08/01/16,
Callable 08/01/13 @ 100 1,425 1,531
</Table>
52
SCHEDULE OF PORTFOLIO INVESTMENTS
STI CLASSIC FIXED INCOME FUNDS March 31, 2005 (Amounts in thousands, except
shares)
MARYLAND MUNICIPAL BOND FUND -- CONCLUDED
<Table>
<Caption>
- -------------------------------------------------------
Shares or
Principal
Amount Value
- -------------------------------------------------------
MARYLAND--CONTINUED
Maryland State Economic
Development Corp.,
Chesapeake Bay Foundation
Project, RB, 2.290%,
11/01/23, LOC: Wachovia Bank
N.A. (b) $ 240 $ 240
Maryland State Economic
Development Corp., CHF-
College Park LLC Project,
Ser A, RB, 2.300%, 06/01/32,
LOC: Wachovia Bank N.A. (b) 1,405 1,405
Maryland State Economic
Development Corp.,
Department of Transportation
Headquarters Project, RB,
5.375%, 06/01/19, Callable
06/01/12 @ 100.50 1,000 1,088
Maryland State Economic
Development Corp., Student
Housing, University of
Maryland College Park
Project, RB, 5.750%,
06/01/18, Callable 06/01/13
@ 100 475 515
Maryland State Economic
Development Corp., Student
Housing, University of
Maryland Project, Ser A, RB,
5.625%, 10/01/23, Callable
10/01/13 @ 100 500 519
Maryland State Economic
Development Corp., Student
Housing, University Village
at Sheppard Pratt Project,
RB, 5.875%, 07/01/21,
Callable 07/01/11 @ 101, ACA 250 267
Maryland State Stadium
Authority, Sports Facilities
Lease Project, RB, 5.800%,
03/01/26, Callable 03/01/06
@ 101, AMBAC 250 259
Maryland State Transportation
Authority, Baltimore/
Washington International
Airport Parking Project, Ser
B, RB, AMT, 5.375%,
03/01/15, Callable 03/01/12
@ 101, AMBAC 1,000 1,069
</Table>
<Table>
<Caption>
- -------------------------------------------------------
Shares or
Principal
Amount Value
- -------------------------------------------------------
MARYLAND--CONTINUED
Montgomery County Economic
Development, Trinity Health
Care Group Project, RB,
5.500%, 12/01/16, Callable
12/01/11 @ 100 $ 1,000 $ 1,075
Montgomery County Housing
Opportunities Commission,
Single Family Mortgage
Project, Ser A, RB, 4.450%,
07/01/17, Callable 01/01/11
@ 100 250 253
Montgomery County Housing
Opportunities Commission,
Multi-Family Housing
Development Project, Ser A,
RB, 6.000%, 07/01/20,
Callable 07/01/10 @ 100 990 1,052
Montgomery County Housing
Opportunities Commission,
Aston Woods Apartments
Project, Ser A, RB, 4.900%,
05/15/31, Callable 05/15/08
@ 102, FNMA 650 681
Northeast Waste Disposal
Authority, Montgomery County
Resource Recovery Project,
Ser A, RB, AMT, 6.000%,
07/01/06 1,100 1,133
Prince George's County Housing
Authority, Emerson House
Project, Ser A, RB, 7.000%,
04/15/19, Callable 04/21/05
@ 102 500 511
St. Mary's County Consolidated
Public Improvement Project,
GO, 5.500%, 07/01/11 1,165 1,298
Talbot County Public
Facilities, GO, 5.375%,
03/15/17, Callable 03/15/12
@ 101 1,000 1,091
--------
42,048
--------
PUERTO RICO (5.0%)
Puerto Rico Commonwealth
Highway & Transportation
Authority, Ser AA, RB,
5.000%, 07/01/06 500 513
</Table>
53
<Table>
<Caption>
- -------------------------------------------------------
Shares or
Principal
Amount Value
- -------------------------------------------------------
PUERTO RICO--CONTINUED
Puerto Rico Electric Power
Authority, Ser RR, RB,
5.000%, 07/01/29, Callable
07/01/15 @ 100, CIFG $ 500 $ 523
Puerto Rico Housing Bank &
Finance Agency, Affordable
Housing Mortgage Portfolio I
Project, RB, AMT, 6.250%,
04/01/29, Callable 10/01/05
@ 102, GNMA/FNMA/ FHLMC 625 643
Puerto Rico Housing Finance
Authority, Capital Funding
Program, RB, 5.000%,
12/01/18, Callable 12/01/13
@ 100, HUD 485 509
--------
2,188
--------
Total Municipal Bonds (Cost
$43,248) 44,236
--------
</Table>
<Table>
<Caption>
- -------------------------------------------------------
Shares or
Principal
Amount Value
- -------------------------------------------------------
MONEY MARKET FUNDS (0.8%)
Federated Maryland Municipal
Cash Trust 371,227 $ 371
--------
Total Money Market Funds (Cost
$371) 371
--------
Total Investments (Cost $43,619)
(a) -- 100.8% 44,607
Liabilities in excess of other
assets -- (0.8)% (364)
--------
Net Assets -- 100.0% $ 44,243
========
</Table>
See notes to schedules of portfolio investments and notes to financial
statements.
54
SCHEDULE OF PORTFOLIO INVESTMENTS
STI CLASSIC FIXED INCOME FUNDS March 31, 2005 (Amounts in thousands, except
shares)
NORTH CAROLINA TAX-EXEMPT BOND FUND
<Table>
<Caption>
- -------------------------------------------------------
Shares or
Principal
Amount Value
- -------------------------------------------------------
MUNICIPAL BONDS (97.1%)
NORTH CAROLINA (97.1%)
Apex, GO, 2.000%, 02/01/06 $ 620 $ 618
Brunswick County Enterprise
System Revenue, Ser A, RB,
5.250%, 04/01/22, Callable
04/01/14 @ 100, FSA 500 535
Brunswick County, COP, 5.000%,
04/01/19, Callable 04/01/14
@ 100, FSA 500 527
Buncombe County, COP, 5.000%,
10/01/15, Callable 10/01/13
@ 100, AMBAC 330 352
Buncombe County, COP, 5.250%,
10/01/17, Callable 10/01/13
@ 100, AMBAC 585 628
Burlington Water & Sewer
System Project, COP, 5.000%,
04/01/19, Callable 04/01/14
@ 100, AMBAC 500 527
Charlotte Governmental
Facilities Project, Ser G,
COP, 5.000%, 06/01/18,
Callable 06/01/13 @ 100 500 525
Charlotte Water & Sewer System
Revenue, RB, 5.500%,
06/01/14, Prerefunded
06/01/09 @ 101 500 549
Charlotte Water & Sewer System
Revenue, RB, 5.250%,
06/01/15, Prerefunded
06/01/09 @ 101 500 544
Charlotte-Mecklenburg Hospital
Authority Health Care System
Revenue, Carolina Health
Care System, Ser A, RB,
5.000%, 01/15/13, Callable
01/15/07 @ 102 500 525
Charlotte-Mecklenburg Hospital
Authority Health Care System
Revenue, Carolina Health
Care System, Ser A, RB,
5.000%, 01/15/16, Callable
01/15/13 @ 100 500 523
Craven County, GO, 3.000%,
06/01/10, AMBAC 500 492
Dare County, COP, 5.000%,
06/01/23, Callable 12/01/12
@ 100, AMBAC 830 857
</Table>
<Table>
<Caption>
- -------------------------------------------------------
Shares or
Principal
Amount Value
- -------------------------------------------------------
NORTH CAROLINA--CONTINUED
Durham County Enterprise
System Revenue, RB, 3.000%,
06/01/05, MBIA $ 500 $ 501
Durham, GO, 5.000%, 02/01/07 500 520
Forsyth County Public
Facilities & Equipment
Project, COP, 5.000%,
10/01/15, Callable 10/01/11
@ 101 950 1,006
Greensboro Enterprise System
Revenue, Ser A, RB, 5.000%,
06/01/05 385 387
Iredell County Public
Facilities Project, COP,
5.250%, 10/01/20, Callable
10/01/13 @ 100, AMBAC 500 533
Mooresville Enterprise System
Revenue, RB, 5.000%,
05/01/19, Callable 05/01/13
@ 100, MBIA 500 526
New Hanover County Hospital
Revenue, New Hanover
Regional Medical Center
Project, RB, 5.300%,
10/01/06, AMBAC 200 208
North Carolina Capital
Facilities Finance Agency,
Educational Facilities
Revenue, Brevard College
Corp. Project, 2.290%,
05/01/26, LOC: Wachovia Bank
N.A. (b) 1,000 1,000
North Carolina Capital
Facilities Finance Agency,
Educational Facilities
Revenue, Johnson & Wales
University Project, Ser A,
RB, 5.000%, 04/01/14,
Callable 04/01/13 @ 100,
LOC: XLCA 500 532
North Carolina Capital
Facilities Finance Agency,
Educational Facilities
Revenue, Trinity Episcopal
School Project, RB, 2.290%,
09/01/24, LOC: Wachovia Bank
N.A. (b) 400 400
</Table>
55
<Table>
<Caption>
- -------------------------------------------------------
Shares or
Principal
Amount Value
- -------------------------------------------------------
NORTH CAROLINA--CONTINUED
North Carolina Capital
Facilities Finance Agency,
Student Housing Revenue,
NCA&T University Foundation
LLC Project, Ser A, RB,
5.250%, 06/01/20, Callable
06/01/14 @ 100, LOC: RADIAN $ 500 $ 532
North Carolina Eastern
Municipal Power Agency,
Power System Revenue, Ser A,
RB, 5.700%, 01/01/15,
Callable 01/01/07 @ 102,
MBIA 500 530
North Carolina Eastern
Municipal Power Agency,
Power System Revenue, Ser C,
RB, 5.375%, 01/01/16,
Callable 01/01/13 @ 100 500 526
North Carolina Educational
Facilities Finance Agency
Revenue, Belmont Abbey
College Project, RB, 2.290%,
06/01/18 LOC: First Union
National Bank (b) 400 400
North Carolina Educational
Facilities Finance Agency
Revenue, Wingate University
Project, RB, 2.290%,
05/01/22, LOC: Bank of
America Corp. (b) 400 400
North Carolina Infrastructure
Finance Corp., Lease
Purchase Revenue,
Correctional Facilities
Projects, RB, 5.000%,
10/01/17, Callable 10/01/13
@ 100 500 531
North Carolina Infrastructure
Finance Corp., North
Carolina State Correctional
Facilities Project, Ser A,
COP, 3.000%, 02/01/10 500 486
</Table>
<Table>
<Caption>
- -------------------------------------------------------
Shares or
Principal
Amount Value
- -------------------------------------------------------
NORTH CAROLINA--CONTINUED
North Carolina Medical Care
Commission Health Care
Facilities Revenue, Novant
Health Obligations Group
Project, Ser A, RB, 5.000%,
11/01/17, Callable 11/01/13
@ 100 $ 500 $ 523
North Carolina Medical Care
Commission Health Care
Facilities Revenue, Novant
Health Obligations Group
Project, Ser A, RB, 5.000%,
11/01/18, Callable 11/01/13
@ 100 500 521
North Carolina Municipal Power
Agency, No. 1 Catawba
Electric Revenue Project,
Ser A, RB, 5.500%, 01/01/15,
MBIA 500 556
North Carolina State Highway,
GO, 4.500%, 05/01/19,
Callable 05/01/13 @ 100 500 509
North Carolina State Public
Improvement, Ser A, GO,
4.750%, 03/01/15, Callable
03/01/11 @ 102 500 530
North Carolina State Public
Improvement, Ser G, GO,
2.180%, 05/01/21, LOC:
Landesbank Hessen-
Thueringen (b) 2,500 2,500
North Carolina State
University at Raleigh
Revenue, Centennial Campus
Project, Ser B, RB, 5.125%,
12/15/16, Prerefunded
12/15/06, @ 101, MBIA 500 521
North Carolina State
University at Raleigh
Revenue, Ser A, RB, 5.000%,
10/01/14, Callable 10/01/13
@ 100, FSA 500 541
Pender County, GO, 5.100%,
06/01/05, FGIC 450 452
Pitt County School Facilities
Project, Ser B, COP, 5.300%,
04/01/21, Callable 04/01/10
@ 101, FSA 500 534
</Table>
56
SCHEDULE OF PORTFOLIO INVESTMENTS
STI CLASSIC FIXED INCOME FUNDS March 31, 2005 (Amounts in thousands, except
shares)
NORTH CAROLINA TAX-EXEMPT BOND FUND -- CONCLUDED
<Table>
<Caption>
- -------------------------------------------------------
Shares or
Principal
Amount Value
- -------------------------------------------------------
NORTH CAROLINA--CONTINUED
Raleigh Combined Enterprise
System Revenue, RB, 5.250%,
03/01/17, Callable 03/01/11
@ 100 $ 500 $ 537
Raleigh Durham Airport
Authority, Airport Revenue,
Ser A, RB, 5.250%, 11/01/14,
Callable 05/01/11 @ 101,
FGIC 250 269
Raleigh Durham Airport
Authority, Airport Revenue,
Ser A, RB, 5.250%, 11/01/17,
Callable 05/01/11 @ 101,
FGIC 500 535
Raleigh Durham Airport
Authority, Airport Revenue,
Ser A, RB, 5.000%, 05/01/30,
Callable 05/01/15 @ 100,
AMBAC 1,000 1,030
Randolph County, COP, 5.000%,
06/01/16, Callable 06/01/14
@ 102, FSA 500 539
Rockingham County Industrial
Facilities & Pollution
Control Financing Authority
Revenue, Industrial
Development 716 Commerce
LLC, RB, 2.370%, 10/01/23,
LOC: Branch Banking & Trust
Co. (b) 300 300
Rockingham County, COP,
5.000%, 04/01/18, Callable
04/01/12 @ 101, AMBAC 500 526
Salisbury Enterprise System
Revenue, RB, 5.000%,
02/01/20, Callable 02/01/12
@ 101, FSA 500 523
Union County Enterprise System
Revenue, Ser A, RB, 5.000%,
06/01/17, Callable 06/01/13
@ 100, FSA 400 422
Union County, COP, 5.000%,
06/01/17, Callable 06/01/13
@ 101, AMBAC 535 570
University of North Carolina
Systems Pool Revenue, Ser A,
RB, 5.375%, 04/01/21,
Callable 10/01/12 @ 100,
AMBAC 400 435
</Table>
<Table>
<Caption>
- -------------------------------------------------------
Shares or
Principal
Amount Value
- -------------------------------------------------------
NORTH CAROLINA--CONTINUED
University of North Carolina
Systems Pool Revenue, Ser A,
RB, 5.375%, 04/01/22,
Callable 10/01/12 @ 100,
AMBAC $ 500 $ 543
University of North Carolina
Systems Pool Revenue, Ser A,
RB, 5.000%, 04/01/23,
Callable 04/01/15 @ 100,
AMBAC 1,910 2,004
University of North Carolina
University Revenue, Dining
System, RB, 5.400%,
05/15/16, Prerefunded
05/15/07 @ 102 500 535
Wake County Hospital Revenue,
RB, 5.125%, 10/01/13, ETM,
MBIA 500 547
Wilmington, COP, 5.000%,
09/01/14, AMBAC 520 562
Wilmington, Ser A, COP,
5.350%, 06/01/24, Callable
06/01/09 @ 101, MBIA 500 534
Wilson Combined Enterprise
Systems Revenue, RB, 5.250%,
12/01/18, Callable 12/01/12
@ 100, FSA 500 538
Winston-Salem Water & Sewer
System Revenue, RB, 5.500%,
06/01/15, Prerefunded
06/01/11 @ 101 270 301
Winston-Salem Water & Sewer
System Revenue, RB, 5.500%,
06/01/16, Prerefunded
06/01/11 @ 101 200 223
Winston-Salem Water & Sewer
System Revenue, RB, 5.000%,
06/01/23, Callable 06/01/15
@ 100 1,205 1,266
Winston-Salem Water & Sewer
System Revenue, RB, 5.000%,
06/01/24, Callable 06/01/15
@ 100 1,315 1,378
Winston-Salem Water & Sewer
System Revenue, Ser A, RB,
5.000%, 06/01/19, Callable
06/01/12 @ 100 500 523
</Table>
57
<Table>
<Caption>
- -------------------------------------------------------
Shares or
Principal
Amount Value
- -------------------------------------------------------
NORTH CAROLINA--CONTINUED
Winston-Salem, Ser A, COP,
5.000%, 06/01/16, Callable
06/01/11 @ 101 $ 1,000 $ 1,055
Winston-Salem State University
Revenue, Housing & Dining
System, Ser B, RB, 4.850%,
01/01/11, Callable 01/01/09
@ 101, MBIA 500 525
-------
Total Municipal Bonds (Cost
$39,858) 39,627
-------
MONEY MARKET FUNDS (7.0%)
Federated Tax-Free Obligations
Fund 1,426,654 1,427
SEI Tax Exempt Trust,
Institutional Tax Free Fund 1,418,009 1,418
-------
Total Money Market Funds (Cost
$2,845) 2,845
-------
Total Investments (Cost $42,703)
(a) -- 104.1% 42,472
Liabilities in excess of other
assets -- (4.1)% (1,674)
-------
Net Assets -- 100.0% $40,798
=======
</Table>
See notes to schedules of portfolio investments and notes to financial
statements.
58
SCHEDULE OF PORTFOLIO INVESTMENTS
STI CLASSIC FIXED INCOME FUNDS March 31, 2005 (Amounts in thousands, except
shares)
SHORT-TERM BOND FUND
<Table>
<Caption>
- -------------------------------------------------------
Shares or
Principal
Amount Value
- -------------------------------------------------------
ASSET BACKED SECURITIES (8.8%)
AUTO MANUFACTURERS (5.6%)
Capital Auto Receivables
Asset Trust, 3.580%,
10/16/06 $ 3,188 $ 3,192
Capital Auto Receivables
Asset Trust, 2.640%,
03/17/08 3,016 2,993
DaimlerChrysler Auto Trust,
Ser 2004, Cl A2, 1.410%,
11/08/06 2,607 2,597
Ford Credit Auto Owner
Trust, 2.130%, 10/15/06 2,908 2,896
Honda Auto Receivables Owner
Trust, 3.610%, 12/18/07 1,500 1,500
USAA Auto Owner Trust, Ser
2004-1, Cl A3, 2.060%,
04/15/08 4,100 4,032
--------
17,210
--------
CREDIT CARD ABS (3.2%)
Bank One Issuance Trust,
2.940%, 06/16/08 4,500 4,486
Citibank Credit Card
Issuance Trust, 2.550%,
01/20/09 3,175 3,089
MBNA Credit Card Master Note
Trust, 3.650%, 03/15/11 2,375 2,316
--------
9,891
--------
Total Asset Backed Securities
(Cost $27,331) 27,101
--------
COLLATERALIZED MORTGAGE OBLIGATIONS (4.7%)
Countrywide Home Loans,
Inc., Ser 2004-21, Cl A10,
6.000%, 11/25/34 (b) 1,949 1,985
JPMorgan Chase Commercial
Mortgage Securities, Ser
2005-LDP1, Cl A2, 4.625%,
03/15/46 2,315 2,295
JPMorgan Mortgage Trust, Ser
2005-A1, Cl 5A1, 4.484%,
02/25/35 (b) 5,166 5,108
Wachovia Bank Commercial
Mortgage Trust, Ser 2005-
C16, Cl A2, 4.380%,
10/15/41 3,290 3,244
</Table>
<Table>
<Caption>
- -------------------------------------------------------
Shares or
Principal
Amount Value
- -------------------------------------------------------
COLLATERALIZED MORTGAGE OBLIGATIONS--CONTINUED
Washington Mutual, Ser
2005-AR4, Cl A1, 3.624%,
04/25/35 (b) $ 2,030 $ 2,027
--------
Total Collateralized Mortgage
Obligations (Cost $14,784) 14,659
--------
CORPORATE BONDS (28.8%)
AUTO MANUFACTURERS (0.4%)
DaimlerChrysler NA Holdings
Corp., 4.750%, 01/15/08 1,385 1,378
--------
BANKS (3.6%)
Bank of America Corp.,
5.250%, 02/01/07 3,015 3,072
Marshall & Ilsley Bank,
4.400%, 03/15/10 4,780 4,728
Wachovia Corp., 6.375%,
02/01/09 3,150 3,342
--------
11,142
--------
BEVERAGES (0.5%)
Coca-Cola Enterprises, Inc.,
5.250%, 05/15/07 1,370 1,398
--------
COSMETICS/PERSONAL CARE (0.3%)
Gillette Co. (The), 3.500%,
10/15/07, Callable
04/15/05 @ 100 793 786
--------
DIVERSIFIED FINANCIAL SERVICES (16.2%)
Bear Stearns & Co., Inc.,
5.700%, 01/15/07 2,225 2,281
Boeing Capital Corp.,
5.650%, 05/15/06 740 753
Capital One Financial Corp.,
7.250%, 05/01/06 735 759
Capital One Financial Corp.,
8.750%, 02/01/07 735 791
CIT Group, Inc., 4.125%,
02/21/06 890 892
CIT Group, Inc., 4.250%,
02/01/10 2,240 2,174
Citigroup, Inc., 5.000%,
03/06/07 3,865 3,920
Countrywide Home Loan, Inc.,
5.500%, 08/01/06 3,125 3,177
Credit Suisse First Boston
USA, Inc., 5.875%,
08/01/06 3,250 3,328
Ford Motor Credit Co.,
6.875%, 02/01/06 2,150 2,179
</Table>
59
<Table>
<Caption>
- -------------------------------------------------------
Shares or
Principal
Amount Value
- -------------------------------------------------------
DIVERSIFIED FINANCIAL SERVICES--CONTINUED
Ford Motor Credit Co.,
6.500%, 01/25/07 (e) $ 1,175 $ 1,187
General Electric Capital
Corp., 5.000%, 06/15/07 2,025 2,055
Goldman Sachs Group, Inc.
(The), 4.125%, 01/15/08 3,300 3,272
HSBC Finance Corp., 4.125%,
03/11/08 3,220 3,196
International Lease Finance
Corp., 3.750%, 08/01/07 1,590 1,569
International Lease Finance
Corp., 3.500%, 04/01/09 1,145 1,096
John Deere Capital Corp.,
Ser D, 3.875%, 03/07/07 1,525 1,516
JPMorgan Chase & Co.,
5.250%, 05/30/07 3,010 3,069
KFW International Finance,
Inc., 4.750%, 01/24/07 2,890 2,936
Lehman Brothers Holdings,
Inc., 6.250%, 05/15/06 2,480 2,539
Merrill Lynch & Co., Inc.,
Ser B, 3.375%, 09/14/07 1,470 1,441
Morgan Stanley, 5.800%,
04/01/07 2,125 2,185
National Rural Utilities
Cooperative Finance Corp.,
3.000%, 02/15/06 4,160 4,135
--------
50,450
--------
ELECTRIC (0.9%)
American Electric Power Co.,
Inc., Ser A, 6.125%,
05/15/06 725 741
Dominion Resources, Inc.,
Ser B, 7.625%, 07/15/05 1,500 1,519
PG&E Corp., 3.260%,
04/03/06 (b) 562 563
--------
2,823
--------
FOREST PRODUCTS & PAPER (0.3%)
Weyerhaeuser Co., 6.125%,
03/15/07 882 913
--------
INSURANCE (0.5%)
Metlife, Inc., 3.911%,
05/15/05 (e) 1,525 1,527
--------
</Table>
<Table>
<Caption>
- -------------------------------------------------------
Shares or
Principal
Amount Value
- -------------------------------------------------------
MEDIA (1.7%)
Comcast Cable
Communications, Inc.,
8.375%, 05/01/07 $ 1,425 $ 1,535
Time Warner, Inc., 6.150%,
05/01/07 1,155 1,192
Viacom, Inc., 7.750%,
06/01/05 2,500 2,517
--------
5,244
--------
REITS (0.5%)
Equity Office Properties
Trust, 8.375%, 03/15/06 1,505 1,565
--------
TELECOMMUNICATIONS (3.9%)
British Telecom PLC, 7.875%,
12/15/05 2,875 2,957
Deutsche Telekom Finance,
8.250%, 06/15/05 3,000 3,028
SBC Communications, Inc.,
5.750%, 05/02/06 1,560 1,589
SBC Communications, Inc.,
4.125%, 09/15/09 740 720
Verizon Global Funding
Corp., 6.125%, 06/15/07 1,633 1,694
Verizon Wireless, Inc.,
5.375%, 12/15/06 2,000 2,037
--------
12,025
--------
Total Corporate Bonds (Cost
$90,127) 89,251
--------
FOREIGN GOVERNMENT BONDS (2.0%)
CANADA (2.0%)
Province of Ontario, 7.000%,
08/04/05 4,000 4,051
Quebec Province, 5.500%,
04/11/06 2,000 2,040
--------
Total Foreign Government Bonds
(Cost $6,023) 6,091
--------
U.S. GOVERNMENT AGENCIES (35.9%)
FANNIE MAE (14.6%)
2.625%, 01/19/07 4,625 4,517
3.750%, 05/17/07, Callable
05/17/05 @ 100 3,875 3,847
6.942%, 08/01/07 (b) 1,382 1,448
3.000%, 08/15/07 7,390 7,209
4.200%, 03/24/08, Callable
03/24/06 @ 100 3,100 3,085
6.070%, 10/01/08 1,944 1,997
3.810%, 12/01/08 3,220 3,183
</Table>
60
SCHEDULE OF PORTFOLIO INVESTMENTS
STI CLASSIC FIXED INCOME FUNDS March 31, 2005 (Amounts in thousands, except
shares)
SHORT-TERM BOND FUND -- CONCLUDED
<Table>
<Caption>
- -------------------------------------------------------
Shares or
Principal
Amount Value
- -------------------------------------------------------
FANNIE MAE--CONTINUED
3.125%, 03/16/09, Callable
03/16/06 @ 100 $ 1,625 $ 1,549
6.850%, 08/01/09 3,183 3,413
4.000%, 11/25/16 (b) 757 756
3.173%, 05/01/33 (b) 3,056 3,078
3.910%, 09/01/33 (b) 2,222 2,268
3.783%, 10/01/33 (b) 2,571 2,658
4.333%, 03/01/34 (b) 3,257 3,226
4.354%, 03/01/34 (b) 2,953 2,957
--------
45,191
--------
FEDERAL HOME LOAN BANK (6.8%)
3.250%, 08/15/05 5,885 5,889
4.875%, 11/15/06 14,000 14,211
2.625%, 05/15/07 1,125 1,093
--------
21,193
--------
FREDDIE MAC (12.6%)
2.500%, 11/25/05 1,920 1,903
2.375%, 12/15/05 6,000 5,950
3.050%, 01/19/07 3,725 3,668
2.375%, 02/15/07 2,425 2,357
2.400%, 03/29/07 4,000 3,880
4.000%, 07/01/08 2,808 2,786
5.750%, 03/15/09 1,740 1,826
5.000%, 05/15/11 520 520
3.750%, 12/15/11 2,668 2,631
4.500%, 08/15/19 143 142
5.000%, 12/15/20 4,373 4,420
4.500%, 10/15/28 2,787 2,764
3.344%, 07/01/33 (b) 2,831 2,860
5.007%, 04/01/34 (b) 3,075 3,125
--------
38,832
--------
SALLIE MAE (1.9%)
3.210%, 09/15/06 (b) 5,800 5,815
--------
Total U.S. Government Agencies
(Cost $112,391) 111,031
--------
</Table>
<Table>
<Caption>
- -------------------------------------------------------
Shares or
Principal
Amount Value
- -------------------------------------------------------
U.S. TREASURY OBLIGATIONS (18.8%)
U.S. TREASURY NOTES (18.8%)
1.875%, 01/31/06 (e) $ 22,000 $ 21,736
2.750%, 07/31/06 (e) 14,980 14,812
2.250%, 02/15/07 (e) 3,800 3,696
2.750%, 08/15/07 (e) 14,455 14,095
2.625%, 05/15/08 (e) 2,620 2,517
3.500%, 08/15/09 (e) 1,435 1,400
--------
Total U.S. Treasury
Obligations (Cost $58,809) 58,256
--------
YANKEE DOLLAR (0.5%)
BEVERAGES (0.5%)
Diageo PLC, 3.375%, 03/20/08 1,600 1,557
--------
Total Yankee Dollar (Cost
$1,599) 1,557
--------
SHORT TERM INVESTMENTS (19.5%)
CSFB Enhanced Liquidity
Portfolio (f) 60,241,356 60,241
--------
Total Short Term Investments
(Cost $60,241) 60,241
--------
MONEY MARKET FUNDS (0.1%)
Federated Prime Value Money
Market Fund 290,939 291
--------
Total Money Market Funds (Cost
$291) 291
--------
Total Investments (Cost
$371,596) (a) -- 119.1% 368,478
Liabilities in excess of other
assets -- (19.1)% (59,079)
--------
Net Assets -- 100.0% $309,399
========
</Table>
See notes to schedules of portfolio investments and notes to financial
statements.
61
SHORT-TERM U.S. TREASURY SECURITIES FUND
<Table>
<Caption>
- -------------------------------------------------------
Shares or
Principal
Amount Value
- -------------------------------------------------------
U.S. TREASURY OBLIGATIONS (99.1%)
U.S. TREASURY NOTES (99.1%)
1.625%, 04/30/05 $ 3,000 $ 2,997
6.500%, 05/15/05 1,000 1,004
1.125%, 06/30/05 2,900 2,889
1.500%, 07/31/05 3,000 2,986
6.500%, 08/15/05 3,000 3,039
1.625%, 09/30/05 3,000 2,978
1.625%, 10/31/05 3,000 2,973
5.750%, 11/15/05 7,000 7,106
1.875%, 12/31/05 3,000 2,969
1.875%, 01/31/06 3,000 2,964
1.625%, 02/28/06 5,000 4,920
1.500%, 03/31/06 3,000 2,943
2.250%, 04/30/06 3,000 2,960
4.625%, 05/15/06 8,000 8,097
2.750%, 06/30/06 3,000 2,970
7.000%, 07/15/06 5,000 5,211
2.375%, 08/31/06 6,000 5,895
2.500%, 09/30/06 3,000 2,949
2.500%, 10/31/06 2,000 1,963
2.875%, 11/30/06 6,000 5,918
</Table>
<Table>
<Caption>
- -------------------------------------------------------
Shares or
Principal
Amount Value
- -------------------------------------------------------
U.S. TREASURY NOTES--CONTINUED
6.250%, 02/15/07 $ 4,000 $ 4,181
4.375%, 05/15/07 7,000 7,078
2.750%, 08/15/07 8,000 7,802
6.125%, 08/15/07 500 526
3.000%, 11/15/07 6,000 5,870
3.375%, 02/15/08 8,000 7,881
--------
Total U.S. Treasury Obligations
(Cost $110,058) 109,069
--------
MONEY MARKET FUNDS (0.6%)
Federated U.S. Treasury Cash
Reserves Fund 658,299 658
--------
Total Money Market Funds (Cost
$658) 658
--------
Total Investments (Cost
$110,716) (a) -- 99.7% 109,727
Other assets in excess of
liabilities -- 0.3% 353
--------
Net Assets -- 100.0% $110,080
========
</Table>
See notes to schedules of portfolio investments and notes to financial
statements.
62
SCHEDULE OF PORTFOLIO INVESTMENTS
STI CLASSIC FIXED INCOME FUNDS March 31, 2005 (Amounts in thousands, except
shares)
STRATEGIC INCOME FUND
<Table>
<Caption>
- -------------------------------------------------------
Shares or
Principal
Amount Value
- -------------------------------------------------------
CORPORATE BONDS (26.0%)
ADVERTISING (0.3%)
Bear Creek Corp., 9.000%,
03/01/13, Callable
03/01/09 @ 104.50 (d) $ 75 $ 74
R.H. Donnelley Corp.,
10.875%, 12/15/12,
Callable 12/15/07 @
105.44 575 663
--------
737
--------
AGRICULTURE (0.4%)
Seminis, Inc., 10.250%,
10/01/13, Callable
10/01/08 @ 105.13 1,000 1,180
--------
BUILDING MATERIALS (0.3%)
Ainsworth Lumber Co.
Ltd., 7.250%, 10/01/12,
Callable 10/01/08 @
103.63 (d) 750 735
--------
CHEMICALS (1.4%)
Equistar Chemicals LP,
10.625%, 05/01/11,
Callable 05/01/07 @
105.31 500 561
Huntsman International
LLC, 11.625%, 10/15/10,
Callable 10/15/07 @
105.81 (e) 973 1,139
Lyondell Chemical Co.,
Ser A, 9.625%, 05/01/07 500 536
MacDermid, Inc., 9.125%,
07/15/11, Callable
07/15/06 @ 104.56 750 804
Rockwood Specialties
Group, Inc., 7.500%,
11/15/14, Callable
11/15/09 @ 103.75 (d)
(e) 1,000 1,000
--------
4,040
--------
COMMERCIAL SERVICES (1.3%)
Carriage Services, Inc.,
7.875%, 01/15/15,
Callable 01/15/10 @
103.94 (d) 1,400 1,406
Rural/Metro Corp.,
9.875%, 03/15/15,
Callable 03/15/10 @
104.94 (d) 1,000 1,028
</Table>
<Table>
<Caption>
- -------------------------------------------------------
Shares or
Principal
Amount Value
- -------------------------------------------------------
COMMERCIAL SERVICES--CONTINUED
United Rentals (North
America), Inc., 7.750%,
11/15/13, Callable
11/15/08 @ 103.88 (e) $ 1,250 $ 1,213
--------
3,647
--------
DIVERSIFIED FINANCIAL SERVICES (1.4%)
Crystal US Holdings,
10.500%, 10/01/14,
Callable 10/01/09 @
105.25 (c) (d) (g) 975 683
Rainbow National Services
LLC, 10.375%, 09/01/14,
Callable 09/01/09 @
105.19 (d) 1,000 1,117
Refco Finance Holdings
LLC, 9.000%, 08/01/12,
Callable 08/01/08 @
104.50 (d) 135 143
RMCC Acquisition Co.,
9.500%, 11/01/12,
Callable 11/01/08 @
104.75 (d) 850 833
UGS Corp., 10.000%,
06/01/12, Callable
06/01/08 @ 105 (d) 1,000 1,105
--------
3,881
--------
ELECTRIC (2.4%)
Aquila, Inc., 14.875%,
07/01/12 1,350 1,849
Calpine Generating Co.,
11.500%, 04/01/11 1,000 930
Edison Mission Energy,
10.000%, 08/15/08 1,000 1,111
Mission Energy Holdings,
13.500%, 07/15/08 1,000 1,200
Reliant Energy, Inc.,
6.750%, 12/15/14,
Callable 12/15/09 @
103.38 900 839
Sithe/Independence
Funding Corp., Ser A,
9.000%, 12/30/13 750 837
--------
6,766
--------
</Table>
63
<Table>
<Caption>
- -------------------------------------------------------
Shares or
Principal
Amount Value
- -------------------------------------------------------
ELECTRONICS (0.3%)
Sanmina-SCI Corp.,
10.375%, 01/15/10,
Callable 01/15/07 @
105.19 $ 750 $ 840
--------
ENTERTAINMENT (0.2%)
WMG Holdings Corp.,
9.500%, 12/15/14,
Callable 12/15/09 @
104.75 (c) (d) (g) 900 621
--------
ENVIRONMENT CONTROL (0.5%)
Allied Waste Industries,
9.250%, 05/01/21 1,500 1,523
--------
FOOD (1.7%)
Merisant Co., 9.500%,
07/15/13, Callable
07/15/08 @ 104.75 (d)
(e) 1,350 1,161
PSF Group Holdings, Inc.,
9.250%, 06/15/11,
Callable 06/15/06 @
104.63 2,325 2,493
Swift & Co., 12.500%,
01/01/10, Callable
10/01/06 @ 106.25 1,000 1,128
--------
4,782
--------
FOREST PRODUCTS & PAPER (1.7%)
Appleton Papers, Inc.,
8.125%, 06/15/11,
Callable 06/15/08 @
104.06 500 516
Appleton Papers, Inc.,
Ser B, 9.750%,
06/15/14, Callable
06/15/09 @ 104.88 1,500 1,568
Georgia-Pacific Corp.,
9.500%, 12/01/11 500 590
Tembec Industries, Inc.,
8.500%, 02/01/11 2,090 1,980
--------
4,654
--------
</Table>
<Table>
<Caption>
- -------------------------------------------------------
Shares or
Principal
Amount Value
- -------------------------------------------------------
HEALTHCARE - PRODUCTS (1.2%)
MQ Associates, Inc.,
12.500%, 08/15/12,
Callable 08/15/08 @ 109
(c) (g) $ 3,125 $ 1,781
Universal Hospital
Services, Inc.,
10.125%, 11/01/11,
Callable 11/01/07 @
105.06 1,500 1,538
--------
3,319
--------
HEALTHCARE - SERVICES (3.0%)
Ardent Health Services,
Inc., 10.000%,
08/15/13, Callable
08/15/08 @ 105 1,500 1,778
DaVita, Inc., 7.250%,
03/15/15, Callable
03/15/10 @ 103.63 (d)
(e) 345 338
HealthSouth Corp.,
10.750%, 10/01/08,
Callable 05/25/05 @
105.38 1,750 1,793
PacifiCare Health
Systems, Inc., 10.750%,
06/01/09, Callable
06/01/06 @ 105.38 649 717
Tenet Healthcare Corp.,
9.875%, 07/01/14 450 468
United Surgical Partners,
Inc., 10.000%,
12/15/11, Callable
12/15/06 @ 105 1,000 1,103
US Oncology, Inc.,
10.750%, 08/15/14,
Callable 08/15/09 @
105.38 (d) 2,100 2,309
--------
8,506
--------
HOLDING COMPANIES-DIVERSIFIED (0.2%)
Leucadia National Corp.,
7.000%, 08/15/13 500 499
--------
INSURANCE (0.7%)
AFC Capital Trust I, Ser
B, 8.207%, 02/03/27 (b) 1,000 1,062
Fairfax Financial
Holdings Ltd., 8.300%,
04/15/26 900 819
--------
1,881
--------
</Table>
64
SCHEDULE OF PORTFOLIO INVESTMENTS
STI CLASSIC FIXED INCOME FUNDS March 31, 2005 (Amounts in thousands, except
shares)
STRATEGIC INCOME FUND -- CONCLUDED
<Table>
<Caption>
- -------------------------------------------------------
Shares or
Principal
Amount Value
- -------------------------------------------------------
MACHINERY DIVERSIFIED (0.2%)
NMGH Holding Co.,
10.000%, 05/15/09,
Callable 05/15/06 @ 105 $ 500 $ 539
--------
MEDIA (2.3%)
Dex Media, Inc., 8.500%,
11/15/13, Callable
11/15/08 @ 104.50 (c)
(g) 1,500 1,140
Houghton Mifflin Co.,
12.553%, 10/15/13 (c)
(e) (g) 2,500 1,737
Kabel Deutschland Gmbh,
10.625%, 07/01/14,
Callable 07/01/09 @
105.31 (d) 1,500 1,657
Mediacom Broadband LLC,
11.000%, 07/15/13,
Callable 07/15/06 @
105.50 1,000 1,070
Mediacom LLC, 9.500%,
01/15/13, Callable
01/15/06 @ 104.75 (e) 945 943
--------
6,547
--------
METAL FABRICATE/HARDWARE (0.4%)
Mueller Holdings, Inc.,
11.434%, 04/15/14,
Callable 04/15/09 @
107.38 (c) (g) 1,772 1,223
--------
OFFICE/BUSINESS EQUIPMENT (0.4%)
Xerox Corp., 9.750%,
01/15/09 1,000 1,128
--------
OIL & GAS (0.6%)
Chesapeake Energy Corp.,
9.000%, 08/15/12,
Callable 08/15/07 @
104.50 1,500 1,656
--------
PACKAGING & CONTAINERS (1.0%)
AEP Industries, Inc.,
7.875%, 03/15/13,
Callable 03/15/09 @
103.94 (d) 90 90
Crown Euro Holdings SA,
9.500%, 03/01/11,
Callable 03/01/07 @
104.75 500 549
</Table>
<Table>
<Caption>
- -------------------------------------------------------
Shares or
Principal
Amount Value
- -------------------------------------------------------
PACKAGING & CONTAINERS--CONTINUED
Plastipak Holdings, Inc.,
10.750%, 09/01/11,
Callable 09/01/06 @
105.38 $ 1,000 $ 1,110
Stone Container Corp.,
9.250%, 02/01/08 1,000 1,065
--------
2,814
--------
PIPELINES (0.9%)
Dynegy Holdings, Inc.,
10.125%, 07/15/13,
Callable 07/15/08 @
105.06 (d) 2,250 2,453
--------
REAL ESTATE (0.3%)
CB Richard Ellis
Services, Inc., 9.750%,
05/15/10, Callable
05/15/07 @ 104.88 750 848
--------
REITS (0.3%)
Host Marriott LP, Ser G,
9.250%, 10/01/07 750 803
--------
RETAIL (0.9%)
Toys "R" Us, Inc.,
7.625%, 08/01/11 (e) 2,350 2,209
United Auto Group, Inc.,
9.625%, 03/15/12,
Callable 03/15/07 @
104.81 210 222
--------
2,431
--------
TELECOMMUNICATIONS (1.7%)
Cincinnati Bell, Inc.,
8.375%, 01/15/14,
Callable 01/15/09 @
104.19 (e) 1,250 1,231
Citizens Communications
Co., 9.250%, 05/15/11 1,000 1,095
PanAmSat Corp., 9.000%,
08/15/14, Callable
08/15/09 @ 104.50 1,750 1,845
Zeus Special Subsidiary
Ltd., 10.204%,
02/01/15, Callable
02/01/10 @ 104.63 (c)
(d) (g) 1,000 633
--------
4,804
--------
Total Corporate Bonds (Cost
$73,200) 72,857
--------
</Table>
65
<Table>
<Caption>
- -------------------------------------------------------
Shares or
Principal
Amount Value
- -------------------------------------------------------
FOREIGN GOVERNMENT BONDS (33.9%)
FRANCE (EUR) (3.7%)
France Government,
4.000%, 10/25/14 6,350 $ 8,486
France Government,
4.750%, 04/25/35 1,350 1,935
--------
10,421
--------
GERMANY (EUR) (3.8%)
Deutschland Republic,
4.250%, 07/04/14 6,360 8,677
Deutschland Republic, Ser
03, 4.750%, 07/04/34 1,360 1,952
--------
10,629
--------
JAPAN (YEN) (19.0%)
Japan Government, Ser 16,
2.500%, 09/20/34 596,900 5,839
Japan Government, Ser
227, 0.100%, 12/20/06 1,620,350 15,119
Japan Government, Ser
265, 1.500%, 12/20/14 614,800 5,838
Japan Government, Ser 42,
0.600%, 12/20/09 2,826,100 26,478
--------
53,274
--------
NORWAY (NOK) (4.4%)
Norwegian Government,
6.750%, 01/15/07 64,000 10,819
Norwegian Government,
5.000%, 05/15/15 8,500 1,443
--------
12,262
--------
SPAIN (EUR) (3.0%)
Spanish Government,
4.400%, 01/31/15 6,100 8,398
--------
Total Foreign Government
Bonds (Cost $95,729) 94,984
--------
PREFERRED STOCK (0.5%)
MEDIA (0.5%)
Primedia, Inc., Ser H,
8.625% 15,000 1,440
--------
Total Preferred Stock (Cost
$1,425) 1,440
--------
</Table>
<Table>
<Caption>
- -------------------------------------------------------
Shares or
Principal
Amount Value
- -------------------------------------------------------
U.S. TREASURY OBLIGATIONS (33.4%)
U.S. TREASURY INFLATION PROTECTED NOTES/BONDS (10.5%)
1.625%, 01/15/15 (e) $ 18,325 $ 18,056
3.875%, 04/15/29 (e) 8,340 11,470
--------
29,526
--------
U.S. TREASURY NOTES (22.9%)
3.000%, 12/31/06 (e) 48,515 47,898
4.000%, 03/15/10 10,190 10,110
4.875%, 02/15/12 (e) 6,030 6,227
--------
64,235
--------
Total U.S. Treasury
Obligations (Cost
$94,293) 93,761
--------
YANKEE DOLLAR (1.3%)
FOOD (0.4%)
Burns, Philp Capital
Property Ltd., 9.750%,
07/15/12, Callable
07/15/07 @ 104.88 1,000 1,090
--------
TELECOMMUNICATIONS (0.4%)
National Cable PLC,
7.660%, 10/15/12,
Callable 04/15/05 @ 103
(b) (d) 1,000 1,030
--------
TRANSPORTATION (0.5%)
Ultrapetrol (Bahamas)
Ltd., 9.000%, 11/24/14,
Callable 11/24/09 @
104.50 (d) 1,500 1,395
--------
Total Yankee Dollar (Cost
$3,535) 3,515
--------
SHORT-TERM INVESTMENTS (27.5%)
Brown Brothers Harriman &
Co., Cayman Islands
Cash Sweep 9,854,657 9,855
CSFB Enhanced Liquidity
Portfolio (f) 67,413,543 67,414
--------
Total Short-Term
Investments (Cost
$77,269) 77,269
--------
Total Investments (Cost
$345,451) (a) -- 122.6% 343,826
Liabilities in excess of
other assets -- (22.6)% (63,318)
--------
Net Assets -- 100.0% $280,508
========
</Table>
See notes to schedules of portfolio investments and notes to financial
statements.
66
SCHEDULE OF PORTFOLIO INVESTMENTS
STI CLASSIC FIXED INCOME FUNDS March 31, 2005 (Amounts in thousands, except
shares)
U.S. GOVERNMENT SECURITIES FUND
<Table>
<Caption>
- -------------------------------------------------------
Shares or
Principal
Amount Value
- -------------------------------------------------------
ASSET BACKED SECURITIES (0.3%)
CREDIT CARD ABS (0.3%)
MBNA Credit Card Master Note
Trust, Ser 2003-A7, Cl A7,
2.650%, 11/15/10 $ 1,000 $ 949
--------
Total Asset Backed Securities
(Cost $970) 949
--------
U.S. GOVERNMENT AGENCIES (49.4%)
FANNIE MAE (40.9%)
6.000%, 11/01/07 47 48
6.500%, 03/01/12 184 192
4.717%, 08/25/12 5,000 4,933
6.500%, 12/01/12 108 113
6.500%, 06/01/13 36 37
6.500%, 06/01/13 142 149
6.500%, 09/01/13 17 17
4.000%, 11/01/13 7,938 7,808
6.000%, 07/01/16 1,165 1,204
6.000%, 07/01/16 2,428 2,509
6.500%, 09/01/16 730 763
5.500%, 04/01/17 2,908 2,971
5.500%, 09/01/17 2,776 2,832
6.000%, 09/01/17 395 408
5.500%, 04/01/18 1,268 1,294
6.290%, 08/01/18 1,223 1,272
5.500%, 11/01/18 8,504 8,676
6.000%, 12/01/18 258 267
8.750%, 12/25/20 7 7
6.500%, 03/01/29 460 480
6.500%, 04/01/31 336 350
6.500%, 06/01/31 1,015 1,056
6.500%, 12/01/31 631 657
7.000%, 12/01/31 484 511
7.000%, 12/01/31 238 251
6.500%, 01/01/32 813 846
6.500%, 05/01/32 263 274
7.000%, 06/01/32 2,168 2,286
6.500%, 07/01/32 434 451
5.324%, 03/01/33 (b) 9,035 9,078
6.000%, 03/01/33 2,503 2,561
5.212%, 04/01/33 (b) 3,117 3,120
5.500%, 04/01/33 5,703 5,715
4.115%, 08/01/33 (b) 11,302 11,226
6.000%, 10/01/33 3,558 3,638
3.999%, 11/01/33 (b) 3,887 3,840
6.000%, 01/01/34 6,641 6,790
6.000%, 02/01/34 3,699 3,781
</Table>
<Table>
<Caption>
- -------------------------------------------------------
Shares or
Principal
Amount Value
- -------------------------------------------------------
U.S. GOVERNMENT AGENCIES--CONTINUED
6.000%, 02/01/34 $ 6,709 $ 6,860
6.000%, 04/01/34 12,614 12,896
4.590%, 05/01/34 (b) 7,461 7,409
4.750%, 05/01/34 (b) 9,338 9,207
4.034%, 06/01/34 (b) 4,297 4,248
4.280%, 06/01/34 (b) 3,790 3,746
--------
136,777
--------
FREDDIE MAC (4.8%)
4.875%, 11/15/13 2,500 2,511
7.000%, 06/01/17 316 334
5.500%, 02/01/24 9,723 9,824
6.000%, 01/01/34 3,438 3,519
--------
16,188
--------
GOVERNMENT NATIONAL MORTGAGE ASSOCIATION (3.7%)
7.500%, 10/20/09 4 5
6.000%, 07/15/13 223 231
6.000%, 01/15/14 119 124
6.000%, 01/15/14 274 285
6.500%, 05/20/28 179 187
6.250%, 10/15/28 339 353
6.000%, 12/15/31 2,701 2,781
5.500%, 12/15/32 2,619 2,646
6.000%, 03/15/33 1,281 1,317
3.750%, 01/20/34 4,505 4,458
--------
12,387
--------
Total U.S. Government Agencies
(Cost $166,526) 165,352
--------
U.S. TREASURY OBLIGATIONS (45.2%)
U.S. TREASURY BONDS (6.0%)
5.375%, 02/15/31 (e) 18,200 19,836
--------
U.S. TREASURY INFLATION PROTECTED NOTES/BONDS (10.3%)
1.875%, 07/15/13 23,880 24,297
3.875%, 04/15/29 7,424 10,210
--------
34,507
--------
U.S. TREASURY NOTES (28.9%)
1.625%, 04/30/05 (e) 27,800 27,775
2.000%, 05/15/06 12,000 11,801
3.625%, 07/15/09 (e) 11,350 11,131
6.000%, 08/15/09 (e) 25,000 26,865
3.375%, 09/15/09 (e) 19,750 19,141
--------
96,713
--------
Total U.S. Treasury
Obligations (Cost $150,300) 151,056
--------
</Table>
67
<Table>
<Caption>
- -------------------------------------------------------
Shares or
Principal
Amount Value
- -------------------------------------------------------
SHORT TERM INVESTMENTS (28.3%)
CSFB Enhanced Liquidity
Portfolio (f) 94,583,437 $ 94,583
--------
Total Short Term Investments
(Cost $94,583) 94,583
--------
</Table>
<Table>
<Caption>
- -------------------------------------------------------
Shares or
Principal
Amount Value
- -------------------------------------------------------
REPURCHASE AGREEMENTS (6.7%)
Merrill Lynch & Co. Inc.,
2.820%, dated 03/31/05, to
be repurchased on
04/01/05, repurchase price
$22,340,580
(collateralized by U.S.
Government Agencies,
5.000%-6.000%, due
09/01/18-03/01/35; total
market value $22,787,186) $ 22,339 $ 22,339
--------
Total Repurchase Agreements
(Cost $22,339) 22,339
--------
Total Investments (Cost
$434,718) (a) -- 129.9% 434,279
Liabilities in excess of other
assets -- (29.9)% (99,912)
--------
Net Assets -- 100.0% $334,367
========
</Table>
See notes to schedules of portfolio investments and notes to financial
statements.
68
SCHEDULE OF PORTFOLIO INVESTMENTS
STI CLASSIC FIXED INCOME FUNDS March 31, 2005 (Amounts in thousands, except
shares)
VIRGINIA INTERMEDIATE MUNICIPAL BOND FUND
<Table>
<Caption>
- -------------------------------------------------------
Shares or
Principal
Amount Value
- -------------------------------------------------------
MUNICIPAL BONDS (98.0%)
DISTRICT OF COLUMBIA (1.0%)
Metropolitan Washington D.C.
Airports Authority, Ser B,
RB, 5.250%, 10/01/19,
Callable 10/01/13 @ 100 $ 1,685 $ 1,804
--------
VIRGINIA (94.3%)
Albemarle County Industrial
Development Authority,
Residential Care Facilities,
Ser A, RB, 5.000%, 01/01/07,
Callable 01/01/06 @ 101 95 96
Arlington County Industrial
Development Authority,
Hospital Facilities, RB,
5.500%, 07/01/06 2,000 2,064
Arlington County Industrial
Development Authority,
Hospital Facilities, RB,
5.500%, 07/01/11 2,000 2,177
Arlington County Industrial
Development Authority,
Hospital Facilities, RB,
5.500%, 07/01/17, Callable
07/01/11 @ 101 2,225 2,367
Arlington County Industrial
Development Authority,
Resource Recovery, Ser B,
RB, AMT, 5.375%, 01/01/11,
Callable 07/01/08 @ 101 2,785 2,946
Chesapeake Economic
Development Authority, RB,
5.000%, 06/01/11, MBIA 1,995 2,149
Chesapeake Public Improvement
Project, GO, 5.500%,
12/01/10 2,500 2,767
Chesapeake Water & Sewer
Project, GO, 5.000%,
12/01/19, Callable 12/01/14
@ 101 2,465 2,631
Chesapeake Water & Sewer
Project, GO, 5.000%,
12/01/20, Callable 12/01/14
@ 101 3,640 3,869
Chesapeake, GO, 5.400%,
12/01/08 2,500 2,699
</Table>
<Table>
<Caption>
- -------------------------------------------------------
Shares or
Principal
Amount Value
- -------------------------------------------------------
VIRGINIA--CONTINUED
Chesterfield County Industrial
Development Authority,
Virginia State University
Real Estate Project, Ser A,
RB, 2.320%, 07/01/29, LOC:
Bank of America Corp. (b) $ 880 $ 880
Commonwealth Transportation
Board, Ser A, RB, 5.375%,
05/15/13, Callable 05/01/11
@ 100 2,045 2,236
Dinwiddie County Development
Authority, Ser B, RB,
5.000%, 02/15/24, Callable
02/15/14 @ 100, MBIA 1,750 1,821
Education Loan Authority,
Guaranteed Student Loan
Program, Ser B, RB, AMT,
5.550%, 09/01/10 1,515 1,552
Fairfax County Economic
Development Authority,
Transportation Contract, RB,
5.000%, 04/01/22, Callable
04/01/14 @ 100, MBIA 1,625 1,703
Fairfax County Water
Authority, RB, 5.500%,
04/01/14, Callable 04/01/12
@ 100 2,000 2,214
Fairfax County Water
Authority, RB, 6.000%,
04/01/22, Callable 04/01/07
@ 102 5,560 5,967
Fairfax County, Ser A, GO,
5.000%, 04/01/16, Callable
04/01/14 @ 100 2,000 2,158
Fauquier County Industrial
Development Authority, RB,
5.000%, 10/01/06, LOC:
Radian 1,180 1,215
Front Royal & Warren County
Development Authority, Ser
B, RB, 5.000%, 04/01/23,
Callable 04/01/14 @ 100 2,485 2,585
Greater Richmond Convention
Center Authority, Hotel Tax,
RB, 5.250%, 06/15/05 460 463
</Table>
69
<Table>
<Caption>
- -------------------------------------------------------
Shares or
Principal
Amount Value
- -------------------------------------------------------
VIRGINIA--CONTINUED
Greater Richmond Convention
Center Authority, Hotel Tax,
RB, 6.000%, 06/15/13,
Callable 06/15/10 @ 101 $ 3,185 $ 3,596
Halifax County Industrial
Development Authority, RB,
3.000%, 09/01/06 1,125 1,123
Hampton, Ser A, GO, 5.500%,
07/15/18, Callable 07/15/12
@ 101 1,275 1,409
Hanover County Industrial
Development Authority,
Regional Medical Care
Project, RB, 6.375%,
08/15/18, MBIA 5,100 6,002
Harrisonburg Industrial
Development Authority, RB,
5.750%, 12/01/13, Callable
05/31/05 @ 100, MBIA 3,000 3,007
Henrico County Economic
Development Authority,
Residential Care Facilities,
Ser A, RB, 3.750%, 06/01/06 255 255
Henrico County Economic
Development Authority,
Residential Care Facilities,
Ser A, RB, 4.250%, 06/01/07 525 529
Henrico County Economic
Development Authority,
Residential Care Facilities,
Ser A, RB, 5.000%, 06/01/10 1,000 1,019
Henrico County Economic
Development Authority,
Residential Care Facilities,
Ser A, RB, 6.500%, 06/01/22,
Callable 06/01/12 @ 100 1,000 1,048
Henrico County Industrial
Development Authority, Lease
Revenue, RB, 5.150%,
06/01/07, Callable 06/01/06
@ 102 2,500 2,613
Henrico County Industrial
Development Authority, RB,
5.300%, 12/01/11 1,000 1,003
Henrico County, GO, 5.000%,
01/15/08 2,220 2,344
</Table>
<Table>
<Caption>
- -------------------------------------------------------
Shares or
Principal
Amount Value
- -------------------------------------------------------
VIRGINIA--CONTINUED
James City County Industrial
Development Authority,
Residential Care Facility,
Ser B, RB, 5.375%, 03/01/26,
Callable 09/01/05 @ 100 $ 1,925 $ 1,931
King George County Industrial
Development Authority,
Birchwood Power Partners,
Ser B, RB, 2.330%,
12/01/24 (b) 1,545 1,545
Loudoun County Industrial
Development Authority,
Loudoun Hospital Center
Project, RB, 6.000%,
06/01/22, Callable 06/01/12
@ 101 1,000 1,088
Loudoun County Industrial
Development Authority,
Residential Care Facilities,
Ser A, RB, 6.000%, 08/01/24,
Callable 08/01/14 @ 100 1,000 1,028
Loudoun County Industrial
Development Authority,
Residential Care Facilities,
Ser B, RB, 5.000%, 08/01/28,
Callable 08/01/07 @ 101 1,075 1,080
Loudoun County Sanitation
Authority, Water & Sewage,
RB, 5.000%, 01/01/25,
Callable 01/01/15 @ 100 3,165 3,301
Loudoun County, Ser A, GO,
5.000%, 11/01/06 2,000 2,072
Loudoun County, Ser A, GO,
5.000%, 07/01/13 3,000 3,268
Lynchburg, GO, 3.000%,
06/01/06, Callable 06/01/05
@ 100 2,100 2,097
Lynchburg, Ser A, GO, 5.000%,
06/01/17, Callable 06/01/15
@ 100 2,485 2,667
Montgomery County Industrial
Development Authority, RB,
5.500%, 01/15/18, Callable
01/15/12 @ 101, AMBAC 1,865 2,045
Newport News Industrial
Development Authority, RB,
5.500%, 09/01/09 2,500 2,724
Newport News, GO, 5.250%,
07/01/15 3,000 3,323
</Table>
70
SCHEDULE OF PORTFOLIO INVESTMENTS
STI CLASSIC FIXED INCOME FUNDS March 31, 2005 (Amounts in thousands, except
shares)
VIRGINIA INTERMEDIATE MUNICIPAL BOND FUND -- CONCLUDED
<Table>
<Caption>
- -------------------------------------------------------
Shares or
Principal
Amount Value
- -------------------------------------------------------
VIRGINIA--CONTINUED
Newport News, GO, 5.000%,
05/01/19, Callable 05/01/14
@ 101 $ 2,000 $ 2,129
Norfolk Industrial Development
Authority, RB, 6.900%,
06/01/06, AMBAC 1,000 1,046
Norfolk Virginia Parking
System, Ser B, RB, 5.000%,
02/01/14, AMBAC 2,135 2,308
Peninsula Ports Authority,
Residential Care Facility,
Ser A, RB, 7.375%, 12/01/23,
Callable 12/01/13 @ 100 1,500 1,603
Richmond, GO, 3.500%, 06/28/05 2,000 2,006
Richmond, GO, 5.500%,
01/15/12, Callable 01/15/11
@ 101 2,500 2,759
Richmond, GO, 5.500%,
01/15/18, Callable 01/10/11
@ 101, FSA 2,755 3,005
Richmond, GO, 5.000%,
07/15/23, Callable 07/15/14
@ 100, FSA 1,500 1,573
Roanoke Industrial Development
Authority, Carilion Health
System Project, Ser A, RB,
5.750%, 07/01/13, Callable
07/01/12 @ 100 2,000 2,220
Roanoke Industrial Development
Authority, Carilion Health
System, Ser A, RB, 5.750%,
07/01/14, Callable 07/01/12
@ 100 2,000 2,209
Roanoke Industrial Development
Authority, Carilion Health
System, Ser A, RB, 5.500%,
07/01/18, Callable 07/01/12
@ 100 2,000 2,147
Roanoke Industrial Development
Authority, Carilion Health
System, Ser C, RB, 2.230%,
07/01/27 (b) 2,730 2,730
Roanoke Public Improvement,
Ser B, GO, 5.000%, 02/01/24,
Callable 02/01/15 @ 101 2,500 2,626
</Table>
<Table>
<Caption>
- -------------------------------------------------------
Shares or
Principal
Amount Value
- -------------------------------------------------------
VIRGINIA--CONTINUED
Russell County Industrial
Development Authority,
Pollution Control Project,
RB, 2.700%, 11/01/07 (b) $ 1,000 $ 994
Southwest Regional Jail
Authority, RB, 3.000%,
09/01/06, Callable 09/01/05
@ 100 1,750 1,753
Spotsylvania County Water &
Sewer, RB, 5.000%, 06/01/26 2,635 2,739
Stafford County Water & Sewer,
RB, 5.000%, 06/01/12, FSA 2,275 2,464
Virginia Beach Development
Authority, Ser A, RB,
5.375%, 08/01/16, Callable
08/01/12 @ 100 1,650 1,794
Virginia College Building
Authority, Educational
Facilities Project, RB,
5.375%, 01/01/21, Callable
01/01/16 @ 100 2,990 3,348
Virginia College Building
Authority, Educational
Facilities Project, Ser A,
RB, 5.000%, 02/01/15,
Callable 02/01/14 @ 100 4,510 4,855
Virginia Housing Development
Authority, Commonwealth
Mortgage Project, Ser A, RB,
AMT, 2.000%, 07/01/06 750 743
Virginia Housing Development
Authority, Commonwealth
Mortgage Project, Ser I, RB,
AMT, 3.750%, 07/01/05 1,000 1,002
Virginia Housing Development
Authority, Commonwealth
Mortgage Project, Ser J, RB,
4.875%, 07/01/13, Callable
07/01/11 @ 100, MBIA 2,500 2,580
Virginia Housing Development
Authority, Multifamily, Ser
E, RB, AMT, 5.350%,
11/01/11, Callable 01/01/08
@ 102 1,250 1,317
Virginia Housing Development
Authority, Multifamily, Ser
H, RB, AMT, 5.625%,
11/01/18, Callable 11/01/09
@ 100 3,500 3,658
</Table>
71
<Table>
<Caption>
- -------------------------------------------------------
Shares or
Principal
Amount Value
- -------------------------------------------------------
VIRGINIA--CONTINUED
Virginia Housing Development
Authority, Multifamily, Ser
I, RB, AMT, 4.875%,
11/01/12, Callable 01/01/09
@ 101 $ 1,950 $ 2,005
Virginia Polytechnic Institute
& State University, Ser D,
RB, 5.125%, 06/01/21,
Callable 06/01/14 @ 101,
AMBAC 1,095 1,174
Virginia Port Authority,
Commonwealth Port Fund, RB,
AMT, 5.900%, 07/01/16,
Callable 07/01/06 @ 101 2,000 2,088
Virginia Public School
Authority, Ser B, RB,
5.000%, 08/01/13, Callable
08/01/10 @ 101 2,910 3,112
Virginia Public School
Authority, Ser D, RB,
5.000%, 02/01/11 2,000 2,158
Virginia Resources Authority,
Infrastructure, RB, 5.000%,
11/01/22, Callable 11/01/13
@ 100 1,670 1,746
Virginia State Public Building
Authority, RB, 5.100%,
08/01/05 500 505
Virginia State Resource
Authority, Senior
Infrastructure, Ser B, RB,
5.000%, 11/01/26, Callable
11/01/14 @ 100 2,185 2,278
</Table>
<Table>
<Caption>
- -------------------------------------------------------
Shares or
Principal
Amount Value
- -------------------------------------------------------
VIRGINIA--CONTINUED
Virginia Transportation Board
Contract, Ser B, RB, 6.750%,
05/15/06 $ 3,605 $ 3,764
York County Industrial
Development Authority,
Pollution Control Project,
RB, 5.500%, 07/01/09,
Callable 11/08/06 @ 101 640 670
--------
173,784
--------
PUERTO RICO (2.7%)
Puerto Rico Commonwealth
Highway & Transportation
Authority, Ser AA, RB,
5.000%, 07/01/06 1,500 1,540
Puerto Rico Electric Power
Authority, RB, 4.000%,
07/01/05 1,860 1,867
Puerto Rico Electric Power
Authority, Ser RR, RB,
5.000%, 07/01/26, Callable
07/01/15 @ 100, LOC: XLCA 1,500 1,580
--------
4,987
--------
Total Municipal Bonds (Cost
$178,173) 180,575
--------
MONEY MARKET FUNDS (1.8%)
Federated Virginia Municipal
Cash Trust, Institutional
Class 3,239,238 3,239
--------
Total Money Market Funds (Cost
$3,239) 3,239
--------
Total Investments (Cost
$181,412) (a) -- 99.8% 183,814
Other assets in excess of
liabilities -- 0.2% 288
--------
Net Assets -- 100.0% $184,102
========
</Table>
See notes to schedules of portfolio investments and notes to financial
statements.
72
SCHEDULE OF PORTFOLIO INVESTMENTS
STI CLASSIC FIXED INCOME FUNDS March 31, 2005 (Amounts in thousands, except
shares)
VIRGINIA MUNICIPAL BOND FUND
<Table>
<Caption>
- -------------------------------------------------------
Shares or
Principal
Amount Value
- -------------------------------------------------------
MUNICIPAL BONDS (99.9%)
DISTRICT OF COLUMBIA (1.9%)
Metropolitan Washington
Airports Authority, Airport
System, Ser A, RB, AMT,
5.500%, 10/01/27, Callable
10/01/11 @ 101 $ 1,000 $ 1,035
-------
VIRGINIA (98.0%)
Amherst County Service
Authority, RB, 6.000%,
12/15/20, Callable 12/15/10 @
102 500 526
Amherst County Service
Authority, RB, 6.000%,
12/15/30, Callable 12/15/10 @
102 1,750 1,823
Blacksburg Polytechnic
Institute Sanitation
Authority, RB, 4.150%,
11/01/06 500 509
Bristol Utility System, RB,
5.250%, 07/15/23, Callable
07/15/13 @ 100, MBIA 1,000 1,071
Brunswick County Industrial
Development Authority,
Correctional Facility Lease,
RB, 5.700%, 07/01/10,
Prerefunded 07/01/06 @ 102,
MBIA 1,000 1,057
Chesapeake Virginia Economic
Development, RB, 5.000%,
06/01/13, MBIA 1,065 1,150
Chesterfield County Industrial
Development, RB, 2.320%,
08/01/24, LOC: SunTrust Bank
(b) 1,000 1,000
Fairfax County Economic
Development Authority, RB,
5.000%, 04/01/29, Callable
01/01/14 @ 100, MBIA 1,000 1,034
Fairfax County Economic
Development Authority,
Transportation Contract, RB,
5.000%, 04/01/22, Callable
04/01/14 @ 100, MBIA 1,000 1,048
Fairfax County Sewer, RB,
5.800%, 07/15/22, Callable
07/15/06 @ 102, MBIA 1,000 1,059
Fairfax County, GO, 5.000%,
01/15/26, Callable 01/15/15 @
100 1,000 1,048
</Table>
<Table>
<Caption>
- -------------------------------------------------------
Shares or
Principal
Amount Value
- -------------------------------------------------------
VIRGINIA--CONTINUED
Fairfax County, Ser A, GO,
5.000%, 04/01/16, Callable
04/01/14 @ 100 $ 1,000 $ 1,079
Greater Richmond Convention
Center Authority, Hotel Tax,
RB, 5.500%, 06/15/08 550 585
Greater Richmond Convention
Center Authority, Hotel Tax,
RB, 5.900%, 06/15/16,
Callable 06/15/10 @ 101 950 1,068
Greater Richmond Convention
Center Authority, Hotel Tax,
RB, 5.000%, 06/15/25,
Callable 06/15/15 @ 100, MBIA 1,000 1,039
Greater Richmond Convention
Center Authority, Hotel Tax,
RB, 6.125%, 06/15/25,
Callable 06/15/10 @ 101 1,200 1,362
Hampton Virginia Golf Course,
RB, 6.000%, 12/01/12 974 1,011
Hanover County Industrial
Development Authority,
Regional Medical Care
Project, RB, 6.375%,
08/15/18, MBIA 1,000 1,177
Henrico County Economic
Development Authority, Ser A,
RB, 5.850%, 07/20/19,
Callable 7/20/09 @ 102, GNMA 400 431
Henrico County Economic
Development Authority, Ser A,
RB, 5.900%, 07/20/29,
Callable 07/20/09 @ 102, GNMA 500 544
Henrico County Industrial
Development Authority, RB,
AMT, 3.400%, 03/01/16,
Callable 04/07/05 @ 100, LOC:
First Union National Bank (b) 1,045 1,036
Henry County Public Service
Authority, Water & Sewer, RB,
5.250%, 11/15/13, FSA 1,500 1,645
Loudoun County, Ser A, GO,
5.250%, 05/01/18, Callable
05/01/12 @ 100 1,260 1,384
Loudoun County Industrial
Development Authority, Public
Safety Facilities Lease, Ser
A, RB, 5.250%, 12/15/17,
Callable 06/15/14 @ 100 1,110 1,198
</Table>
73
<Table>
<Caption>
- -------------------------------------------------------
Shares or
Principal
Amount Value
- -------------------------------------------------------
VIRGINIA--CONTINUED
Loudoun County Industrial
Development Authority,
Residential Care Facilities,
Ser A, RB, 6.000%, 08/01/24,
Callable 08/01/14 @ 100 $ 750 $ 771
Lynchburg Industrial
Development Authority
Healthcare Facilities, RB,
5.250%, 01/01/11, Callable
01/01/08 @ 101 1,000 1,047
Newport News Redevelopment &
Housing Authority, RB,
5.850%, 12/20/30, Callable
08/20/07 @ 102, GNMA 500 517
Peninsula Port Authority,
Residential Care Facility,
Ser A, RB, 7.375%, 12/01/23,
Callable 12/01/13 @ 100 525 561
Pittsylvania County, Ser B, GO,
5.625%, 03/01/15, Callable
03/01/11 @ 102, MBIA 1,000 1,116
Richmond Industrial Development
Authority, Student Housing,
RB, 5.450%, 01/01/21,
Callable 01/01/11 @ 102 1,000 1,057
Richmond Public Utility, RB,
5.000%, 01/15/23, Callable
01/15/15 @ 100 1,000 1,049
Richmond, GO, 5.500%, 01/15/11,
FSA 1,000 1,107
Richmond, GO, 5.500%, 01/15/15,
Callable 01/15/11 @ 101 1,290 1,411
Richmond, GO, 5.500%, 01/15/18,
Callable 01/10/11 @ 101, FSA 1,000 1,091
Riverside Regional Jail
Authority, Jail Facility, RB,
5.875%, 07/01/14, Prerefunded
07/01/05 @ 102, MBIA 910 936
Roanoke Industrial Development
Authority, Carilion Health
System Project, Ser A, RB,
5.500%, 07/01/16, Callable
07/01/12 @ 100 1,000 1,079
</Table>
<Table>
<Caption>
- -------------------------------------------------------
Shares or
Principal
Amount Value
- -------------------------------------------------------
VIRGINIA--CONTINUED
Roanoke Industrial Development
Authority, Carilion Health
System Project, Ser A, RB,
5.500%, 07/01/21, Callable
07/01/12 @ 100 $ 1,000 $ 1,068
Roanoke Industrial Development
Authority, Carilion Health
System Project, Ser C, RB,
2.230%, 07/01/27 (b) 1,290 1,291
Southwest Regional Jail
Authority, RB, 5.125%,
09/01/14, Callable 09/01/13 @
100, MBIA 1,095 1,181
Spotsylvania County Water &
Sewer, RB, 5.000%, 06/01/26 1,000 1,039
Virginia Commonwealth
Transportation Board, RB,
5.500%, 10/01/05 1,000 1,015
Virginia Commonwealth
Transportation Board, Ser A,
RB, 5.375%, 05/15/12,
Callable 05/15/11 @ 100 1,500 1,643
Virginia Housing Development
Authority, Ser D, RB, AMT,
5.375%, 04/01/06 715 730
Virginia Polytechnic Institute
& State University, Ser D,
RB, 5.125%, 06/01/21,
Callable 06/01/14 @ 101,
AMBAC 1,000 1,073
Virginia Port Authority,
Commonwealth Port Fund, RB,
AMT, 5.900%, 07/01/16,
Callable 07/01/06 @ 101 1,000 1,044
Virginia Port Authority,
Commonwealth Port Fund, Ser
B, RB, 5.000%, 07/01/30,
Callable 07/01/15 @ 100, FSA 1,000 1,034
Virginia Public School
Authority, RB, 5.250%,
04/01/05 1,000 1,000
Virginia Public School
Authority, Ser A, RB, 5.000%,
08/01/24, Callable 08/01/14 @
100 1,365 1,426
Virginia Public School
Authority, Ser C, RB, 5.000%,
08/01/08, State Aid
Withholding 500 514
Virginia Resources Authority,
Infrastructure, RB, 5.000%,
11/01/22, Callable 11/01/13 @
100 1,250 1,307
</Table>
74
SCHEDULE OF PORTFOLIO INVESTMENTS
STI CLASSIC FIXED INCOME FUNDS March 31, 2005 (Amounts in thousands, except
shares)
VIRGINIA MUNICIPAL BOND FUND -- CONCLUDED
<Table>
<Caption>
- -------------------------------------------------------
Shares or
Principal
Amount Value
- -------------------------------------------------------
VIRGINIA--CONTINUED
Virginia Resources Authority,
Infrastructure, Ser A, RB,
5.800%, 05/01/30, Callable
05/01/11 @ 101 $ 1,500 $ 1,659
-------
53,650
-------
Total Municipal Bonds (Cost
$53,328) 54,685
-------
MONEY MARKET FUNDS (1.0%)
Federated Virginia Municipal
Cash Trust, Institutional
Class 522,406 522
-------
Total Money Market Funds (Cost
$522) 522
-------
Total Investments (Cost $53,850)
(a) -- 100.9% 55,207
Liabilities in excess of other
assets -- (0.9)% (467)
-------
Net Assets -- 100.0% $54,740
=======
</Table>
See notes to schedules of portfolio investments and notes to financial
statements.
75
NOTES TO SCHEDULES OF PORTFOLIO INVESTMENTS
STI CLASSIC FIXED INCOME FUNDS March 31, 2005
<Table>
(+) Amount rounds to less than one thousand.
(a) See notes to financial statements for unrealized
appreciation/(depreciation) of securities on a tax
basis.
(b) Variable rate security. Rate presented represents rate
in effect at March 31, 2005. Maturity date represents
actual maturity date.
(c) Rate represents the effective yield at purchase.
(d) Rule 144A, Section 4(2) or other security which is
restricted as to resale to institutional investors. The
Fund's advisor has deemed this security to be liquid
based upon procedures approved by the Board of
Trustees.
(e) This security or a partial position of the security was
on loan at March 31, 2005. The total value of
securities on loan at March 31, 2005 in thousands was
$4,888, $271,705, $32,815, $58,820, $65,638, and
$92,410 for High Income, Investment Grade Bond,
Limited-Term Federal Mortgage Securities, Short-Term
Bond, Strategic Income, and U.S. Government Securities
Funds, respectively.
(f) This security was purchased with cash collateral held
from securities lending.
(g) Step Bond.
</Table>
The following abbreviations are used in these Schedules of Portfolio
Investments:
<Table>
ACA Security insured by American Capital Access.
AMBAC Security insured by the American Municipal Bond
Assurance Corporation.
AMT Alternative Minimum Tax Paper.
Cl Class.
COP Certificate of Participation.
DN Discount Note.
ETM Escrowed to Maturity.
EUR Principal Amount is in Euro.
FGIC Security insured by the Financial Guaranty
Insurance Company.
FHA Federal Housing Administration.
FHLMC Security insured by Freddie Mac.
FNMA Security insured by Fannie Mae.
FSA Security insured by Financial Security Assurance.
GNMA Security insured by the Government National
Mortgage Association.
GO General Obligation.
HUD Department of Housing and Urban Development.
LLC Limited Liability Company.
LOC Line of Credit.
LP Limited Partnership.
MBIA Security insured by the Municipal Bond Insurance
Association.
NOK Principal Amount is in Norwegian Krone.
RAN Revenue Anticipation Note.
RB Revenue Bond.
REIT Real Estate Investment Trust.
Ser Series.
TAN Tax Anticipation Note.
YEN Principal Amount is in Japanese Yen.
</Table>
76
STATEMENTS OF ASSETS AND LIABILITIES (000)
STI CLASSIC FIXED INCOME FUNDS March 31, 2005
<Table>
<Caption>
Investment
Florida Georgia Investment Grade
Tax-Exempt Tax-Exempt High Grade Tax-Exempt
Bond Fund Bond Fund Income Fund Bond Fund Bond Fund
---------- ---------- ----------- ---------- ----------
Assets:
Investments, at Cost...................................... $174,541 $106,458 $109,631 $928,049 $322,338
======== ======== ======== ======== ========
Investments, at Value..................................... $176,771 $108,752 $109,616 $928,639 $323,713
Cash...................................................... -- -- 2,102 -- 55
Interest and Dividends Receivable......................... 2,512 1,417 2,240 5,824 2,974
Receivable for Capital Shares Sold........................ 5 -- 43 -- 1
Receivable for Investment Securities Sold................. -- -- 2,295 17,071 11,754
Reclaims Receivable....................................... -- -- -- -- --
Prepaid Expenses and Other Assets......................... 8 7 24 22 8
-------- -------- -------- -------- --------
Total Assets................................................ 179,296 110,176 116,320 951,556 338,505
-------- -------- -------- -------- --------
Liabilities:
Options Written (Proceeds $14)............................ -- -- -- -- --
Payable to Custodian...................................... -- -- -- 4,903 --
Income Distributions Payable.............................. 435 282 639 1,746 541
Payable for Investment Securities Purchased............... 2,736 -- 5,126 20,819 44,886
Payable for Capital Shares Redeemed....................... 33 1 424 124 268
Payable upon Return of Securities Loaned.................. -- -- 5,129 278,837 --
Investment Advisory Fees Payable.......................... 93 57 60 394 175
Administration Fees Payable............................... 4 2 2 10 7
Distribution and Service Fees Payable..................... 9 7 33 24 19
Custodian Fees Payable.................................... 1 -- -- 4 2
Accrued Expenses.......................................... 9 -- 3 90 23
-------- -------- -------- -------- --------
Total Liabilities......................................... 3,320 349 11,416 306,951 45,921
-------- -------- -------- -------- --------
Total Net Assets.......................................... $175,976 $109,827 $104,904 $644,605 $292,584
======== ======== ======== ======== ========
Net Assets:
Capital................................................... $173,901 $107,292 $101,299 $657,795 $290,026
Undistributed (Distribution in Excess of) Net Investment
Income.................................................. (11) 138 32 881 (162)
Accumulated Net Realized Gains (Losses) on Investment
Transactions and Foreign Currency Transactions.......... (144) 103 3,588 (14,661) 1,345
Net Unrealized Appreciation (Depreciation) on Investments
and Options............................................. 2,230 2,294 (15) 590 1,375
-------- -------- -------- -------- --------
Total Net Assets.......................................... $175,976 $109,827 $104,904 $644,605 $292,584
======== ======== ======== ======== ========
NET ASSETS:
T Shares.................................................. $157,500 $ 96,503 $ 51,318 $602,995 $259,542
A Shares.................................................. $ 6,129 $ 2,660 $ 739 $ 23,687 $ 17,430
L Shares.................................................. $ 12,347 $ 10,664 $ 52,847 $ 17,923 $ 15,612
SHARES OUTSTANDING:
T Shares.................................................. 14,449 9,452 6,955 57,397 22,670
A Shares.................................................. 562 260 100 2,255 1,521
L Shares.................................................. 1,130 1,044 7,161 1,705 1,364
NET ASSET VALUE AND REDEMPTION PRICE PER SHARE:
T Shares.................................................. $ 10.90 $ 10.21 $ 7.38 $ 10.51 $ 11.45
A Shares.................................................. $ 10.91 $ 10.22 $ 7.39 $ 10.50 $ 11.46
L Shares*................................................. $ 10.93 $ 10.22 $ 7.38 $ 10.51 $ 11.44
OFFERING PRICE PER SHARE (100%/(100%-maximum sales charge)
of net asset value adjusted to the nearest cent):
T Shares.................................................. $ 10.90 $ 10.21 $ 7.38 $ 10.51 $ 11.45
A Shares.................................................. $ 11.34 $ 10.62 $ 7.68 $ 10.91 $ 11.91
L Shares.................................................. $ 10.93 $ 10.22 $ 7.38 $ 10.51 $ 11.44
Maximum Sales Charge -- A Shares............................ 3.75% 3.75% 3.75% 3.75% 3.75%
</Table>
Amounts designated as "--" are $0 or have been rounded to $0.
* Redemption price per share varies by length of time shares are held.
77
<Table>
<Caption>
Limited-Term Virginia
Federal Maryland North Carolina Short-Term U.S. Intermediate
Mortgage Municipal Tax-Exempt Short-Term U.S. Treasury Strategic Government Municipal
Securities Fund Bond Fund Bond Fund Bond Fund Securities Fund Income Fund Securities Fund Bond Fund
--------------- --------- -------------- ---------- --------------- ----------- --------------- ------------
$486,396 $43,619 $42,703 $371,596 $110,716 $345,451 $434,718 $181,412
======== ======= ======= ======== ======== ======== ======== ========
$481,856 $44,607 $42,472 $368,478 $109,727 $343,826 $434,279 $183,814
-- -- -- -- -- -- -- --
2,105 555 516 2,237 923 3,344 1,802 2,454
-- -- -- -- 4 2 1 3
-- 1,045 854 993 -- 12,394 -- 2,135
-- -- -- -- -- 16 -- --
17 4 2 15 12 5 11 15
-------- ------- ------- -------- -------- -------- -------- --------
483,978 46,211 43,844 371,723 110,666 359,587 436,093 188,421
-------- ------- ------- -------- -------- -------- -------- --------
-- -- -- -- 13 -- -- --
-- -- -- 993 -- 10,342 -- --
1,477 127 33 718 182 833 988 509
30 1,814 2,995 -- -- -- 5,869 3,680
140 1 -- 180 329 250 42 20
33,703 -- -- 60,241 -- 67,414 94,583 --
232 11 12 159 43 181 200 102
10 1 -- 7 3 6 8 4
22 12 -- 9 15 42 11 1
5 -- 2 3 1 -- 3 --
38 2 4 14 -- 11 22 3
-------- ------- ------- -------- -------- -------- -------- --------
35,657 1,968 3,046 62,324 586 79,079 101,726 4,319
-------- ------- ------- -------- -------- -------- -------- --------
$448,321 $44,243 $40,798 $309,399 $110,080 $280,508 $334,367 $184,102
======== ======= ======= ======== ======== ======== ======== ========
$461,734 $43,128 $41,228 $322,519 $111,998 $273,083 $338,766 $180,941
1,404 (40) (64) 165 (1) 4,052 607 (8)
(10,277) 167 (135) (10,167) (928) 5,002 (4,567) 767
(4,540) 988 (231) (3,118) (989) (1,629) (439) 2,402
-------- ------- ------- -------- -------- -------- -------- --------
$448,321 $44,243 $40,798 $309,399 $110,080 $280,508 $334,367 $184,102
======== ======= ======= ======== ======== ======== ======== ========
$407,543 $31,046 $40,798 $288,502 $ 69,935 $196,921 $319,058 $176,959
$ 5,854 N/A $ -- $ 5,783 $ 6,349 $ 3,795 $ 3,080 $ 7,143
$ 34,924 $13,197 $ -- $ 15,114 $ 33,796 $ 79,792 $ 12,229 N/A
40,385 3,023 4,132 29,656 7,060 19,237 30,633 17,498
581 N/A -- 593 642 369 296 706
3,459 1,282 -- 1,550 3,418 7,791 1,174 N/A
$ 10.09 $ 10.27 $ 9.87 $ 9.73 $ 9.91 $ 10.24 $ 10.42 $ 10.11
$ 10.07 N/A $ 9.87 $ 9.75 $ 9.90 $ 10.27 $ 10.41 $ 10.11
$ 10.10 $ 10.29 $ 9.87 $ 9.75 $ 9.89 $ 10.24 $ 10.41 N/A
$ 10.09 $ 10.27 $ 9.87 $ 9.73 $ 9.91 $ 10.24 $ 10.42 $ 10.11
$ 10.33 N/A $ 10.25 $ 9.95 $ 10.00 $ 10.67 $ 10.82 $ 10.50
$ 10.10 $ 10.29 $ 9.87 $ 9.75 $ 9.89 $ 10.24 $ 10.41 N/A
2.50% N/A 3.75% 2.00% 1.00% 3.75% 3.75% 3.75%
<Caption>
Virginia
Municipal
Bond Fund
---------
$53,850
=======
$55,207
--
760
--
1,052
--
9
-------
57,028
-------
--
--
162
2,086
--
--
30
1
6
1
2
-------
2,288
-------
$54,740
=======
$53,118
(14)
279
1,357
-------
$54,740
=======
$48,027
$ 179
$ 6,534
4,641
17
629
$ 10.35
$ 10.34
$ 10.40
$ 10.35
$ 10.74
$ 10.40
3.75%
</Table>
See notes to financial statements.
78
STATEMENTS OF OPERATIONS (000)
STI CLASSIC FIXED INCOME FUNDS For the Periods Indicated
<Table>
<Caption>
Florida Tax-Exempt Georgia Tax-Exempt
Bond Fund Bond Fund High Income Fund
---------------------- ---------------------- ----------------------
06/01/04- 06/01/03- 06/01/04- 06/01/03- 06/01/04- 06/01/03-
03/31/05 05/31/04 03/31/05 05/31/04 03/31/05 05/31/04
--------- --------- --------- --------- --------- ---------
Investment Income:
Dividend Income.................................... $ 148 $ 94 $ 29 $ 29 $ 79 $ --
Interest Income.................................... 5,194 7,019 3,631 4,715 8,171 16,189
Security Lending Income............................ -- -- -- -- 33 71
------ -------- ------ -------- ------- -------
Total Investment Income............................ 5,342 7,113 3,660 4,744 8,283 16,260
------ -------- ------ -------- ------- -------
Expenses:
Investment Advisory Fees........................... 988 1,309 597 778 809 1,444
Administration, Fund Accounting and Transfer Agent
Fees............................................. 53 138 32 82 36 124
Distribution Fees -- A Shares...................... 10 12 4 5 3 2
Distribution and Service Fees -- L Shares.......... 133 310 96 163 543 852
Transfer Agent Shareholder Servicing Fees.......... -- 5 -- 3 -- 5
Custodian Fees..................................... 6 5 3 3 5 7
Professional Fees.................................. 5 8 3 5 3 8
Insurance Fees..................................... 3 -- 2 -- 2 --
Registration Fees.................................. 6 7 5 4 4 7
Transfer Agent Out of Pocket Expenses.............. 7 7 5 4 7 6
Transfer Agent Fees -- T Shares.................... 2 16 2 16 2 16
Transfer Agent Fees -- A Shares.................... 2 14 2 13 2 6
Transfer Agent Fees -- L Shares.................... 3 21 2 16 12 71
Printing Fees...................................... 10 7 4 4 5 6
Trustees Fees...................................... 2 2 1 1 1 2
Other Expenses..................................... 7 7 3 3 2 4
------ -------- ------ -------- ------- -------
Total Expenses..................................... 1,237 1,868 761 1,100 1,436 2,560
Less: Investment Advisory Fees Waived.............. (62) (90) (38) (54) (152) (271)
Less: Distribution Fees Waived or Fees
Reimbursed -- A Shares........................... (2) (11) (2) (12) (2) (5)
Less: Distribution and Service Fees Waived -- L
Shares........................................... (36) (107) (26) (61) (179) (364)
Expense Offset -- Insurance Premiums............... (2) -- (1) -- (1) --
------ -------- ------ -------- ------- -------
Net Expenses....................................... 1,135 1,660 694 973 1,102 1,920
------ -------- ------ -------- ------- -------
Net Investment Income.............................. 4,207 5,453 2,966 3,771 7,181 14,340
------ -------- ------ -------- ------- -------
Net Realized and Unrealized Gain (Loss) on
Investments, Options and Foreign Currency
Transactions:
Net Realized Gain (Loss) on Investments Sold,
Forward Foreign Currency Contracts and Foreign
Currency Transactions............................ (145) 3,674 104 3,872 5,788 3,353
Net Change in Unrealized Appreciation
(Depreciation) on Investments, Options, Forward
Foreign Currency Contracts, Foreign Currencies
and Translation of Other Assets and Liabilities
in Foreign Currency.............................. 1,892 (13,497) 1,978 (10,196) (1,932) 931
------ -------- ------ -------- ------- -------
Total Net Realized and Unrealized Gain (Loss) on
Investments, Options and Foreign Currency
Transactions..................................... 1,747 (9,823) 2,082 (6,324) 3,856 4,284
------ -------- ------ -------- ------- -------
Change in Net Assets from Operations............... $5,954 $ (4,370) $5,048 $ (2,553) $11,037 $18,624
====== ======== ====== ======== ======= =======
</Table>
Amounts designated as "--" are $0 or have been rounded to $0.
79
<Table>
<Caption>
Investment Grade Limited-Term
Investment Grade Tax-Exempt Federal Mortgage Maryland Municipal
Bond Fund Bond Fund Securities Fund Bond Fund
--------------------- --------------------- --------------------- ---------------------
06/01/04- 06/01/03- 06/01/04- 06/01/03- 06/01/04- 06/01/03- 06/01/04- 06/01/03-
03/31/05 05/31/04 03/31/05 05/31/04 03/31/05 05/31/04 03/31/05 05/31/04
--------- --------- --------- --------- --------- --------- --------- ---------
$ 55 $ 55 $ 213 $ 152 $ -- $ -- $ 8 $ 8
20,187 30,358 6,747 7,551 17,565 16,973 1,583 2,236
346 359 -- -- 8 57 -- --
------- -------- ------ ------- ------- -------- ------ -------
20,588 30,772 6,960 7,703 17,573 17,030 1,591 2,244
------- -------- ------ ------- ------- -------- ------ -------
3,714 5,555 1,640 1,819 2,672 3,674 250 356
175 514 76 168 144 387 13 37
1 20 1 7 1 15 -- 1
100 143 66 89 14 27
175 319 155 290 405 1,237 132 253
13 32 8 6 12 15 3 1
18 31 10 10 16 23 2 2
9 -- 5 -- 10 -- 2 --
13 29 7 7 12 24 2 2
21 25 9 8 19 19 4 2
3 16 2 16 2 16 2 16
6 38 3 20 3 22
8 52 4 24 12 83 3 20
41 21 17 8 35 19 2 2
5 8 2 3 5 6 1 1
23 13 3 7 1 36 4 1
------- -------- ------ ------- ------- -------- ------ -------
4,325 6,816 2,008 2,482 3,363 5,603 420 694
(101) (155) (67) (79) (206) (281) (41) (44)
(7) (46) (4) (22) (3) (18)
(20) (84) (14) (53) (153) (562) (3) (25)
(4) -- (2) -- (4) -- -- --
------- -------- ------ ------- ------- -------- ------ -------
4,193 6,531 1,921 2,328 2,997 4,742 376 625
------- -------- ------ ------- ------- -------- ------ -------
16,395 24,241 5,039 5,375 14,576 12,288 1,215 1,619
------- -------- ------ ------- ------- -------- ------ -------
2,253 16,393 4,146 1,822 (3,135) (562) 316 500
9,268 (60,476) (262) (8,837) 73 (17,136) 120 (3,073)
------- -------- ------ ------- ------- -------- ------ -------
11,521 (44,083) 3,884 (7,015) (3,062) (17,698) 436 (2,573)
------- -------- ------ ------- ------- -------- ------ -------
$27,916 $(19,842) $8,923 $(1,640) $11,514 $ (5,410) $1,651 $ (954)
======= ======== ====== ======= ======= ======== ====== =======
</Table>
See notes to financial statements.
80
STATEMENTS OF OPERATIONS (000)
STI CLASSIC FIXED INCOME FUNDS For the Periods Indicated
<Table>
<Caption>
North Carolina Short-Term
Tax-Exempt Short-Term U.S. Treasury
Bond Fund Bond Fund Securities Fund
----------------------- ---------------------- ----------------------
06/01/04- 01/08/04*- 06/01/04- 06/01/03- 06/01/04- 06/01/03-
03/31/05 05/31/04 03/31/05 05/31/04 03/31/05 05/31/04
--------- ---------- --------- --------- --------- ---------
Investment Income:
Dividend Income................................... $ 11 $ -- $ 51 $ 59 $ 28 $ 32
Interest Income................................... 1,179 328 7,846 10,238 2,683 4,501
Security Lending Income........................... -- -- 92 78 -- --
Less: Foreign Taxes Withheld...................... -- -- -- -- -- --
------ ----- ------- ------- ------- -------
Total Investment Income........................... 1,190 328 7,989 10,375 2,711 4,533
------ ----- ------- ------- ------- -------
Expenses:
Investment Advisory Fees.......................... 138 41 1,650 2,163 757 1,426
Administration, Fund Accounting and Transfer Agent
Fees............................................ 43 14 88 228 42 151
Distribution Fees -- A Shares..................... -- -- 12 15 14 29
Distribution and Service Fees -- L Shares......... -- -- 161 299 387 975
Transfer Agent Shareholder Servicing Fees......... -- -- 1 9 -- 6
Fund Accounting Fees.............................. 32 13 -- -- -- --
Custodian Fees.................................... 6 2 10 11 5 5
Professional Fees................................. 16 10 9 15 4 8
Insurance Fees.................................... 2 1 5 -- 3 --
Registration Fees................................. 5 1 13 11 9 9
Transfer Agent Out of Pocket Expenses............. 18 6 11 11 7 7
Transfer Agent Fees -- T Shares................... -- -- 2 16 2 16
Transfer Agent Fees -- A Shares................... -- -- 2 16 4 23
Transfer Agent Fees -- L Shares................... -- -- 6 36 9 66
Printing Fees..................................... 1 -- 17 11 12 7
Trustees Fees..................................... 8 3 2 3 1 2
Other Expenses.................................... 4 2 8 10 6 7
------ ----- ------- ------- ------- -------
Total Expenses.................................... 273 93 1,997 2,854 1,262 2,737
Less: Investment Advisory Fees Waived............. (21) (16) (126) (157) (84) (131)
Less: Distribution Fees Waived or Fees
Reimbursed -- A Shares.......................... -- -- (3) (17) (4) (23)
Less: Distribution and Service Fees Waived -- L
Shares.......................................... -- -- (70) (166) (218) (626)
Expense Offset -- Insurance Premiums.............. -- -- (3) -- (1) --
------ ----- ------- ------- ------- -------
Net Expenses...................................... 252 77 1,795 2,514 955 1,957
------ ----- ------- ------- ------- -------
Net Investment Income............................. 938 251 6,194 7,861 1,756 2,576
------ ----- ------- ------- ------- -------
Net Realized and Unrealized Gain (Loss) on
Investments, Options and Foreign Currency
Transactions:
Net Realized Gain (Loss) on Investments Sold,
Forward Foreign Currency Contracts and Foreign
Currency Transactions........................... (12) -- (168) 1,780 (817) 1,438
Net Change in Unrealized Appreciation
(Depreciation) on Investments, Options, Forward
Foreign Currency Contracts, Foreign Currencies
and Translation of Other Assets and Liabilities
in Foreign Currency............................. 633 (864) (3,407) (8,220) (534) (4,029)
------ ----- ------- ------- ------- -------
Total Net Realized and Unrealized Gain (Loss) on
Investments, Options and Foreign Currency
Transactions.................................... 621 (864) (3,575) (6,440) (1,351) (2,591)
------ ----- ------- ------- ------- -------
Change in Net Assets from Operations.............. $1,559 $(613) $ 2,619 $ 1,421 $ 405 $ (15)
====== ===== ======= ======= ======= =======
</Table>
* Commencement of operations.
Amounts designated as "--" are $0 or have been rounded to $0.
81
<Table>
<Caption>
U.S. Government Virginia Intermediate Municipal Virginia Municipal
Strategic Income Fund Securities Fund Bond Fund Bond Fund
--------------------- --------------------- ------------------------------- ---------------------
06/01/04- 06/01/03- 06/01/04- 06/01/03- 06/01/04- 06/01/03- 06/01/04- 06/01/03-
03/31/05 05/31/04 03/31/05 05/31/04 03/31/05 05/31/04 03/31/05 05/31/04
--------- --------- --------- --------- -------------- -------------- --------- ---------
$ 55 $ -- $ 120 $ 308 $ 16 $ 16 $ 11 $ 11
10,724 14,267 11,201 11,387 6,212 8,038 1,935 2,523
35 31 48 93 -- -- -- --
(16) (21) -- -- -- -- -- --
------- ------- ------- -------- ------ ------- ------ -------
10,798 14,277 11,369 11,788 6,228 8,054 1,946 2,534
------- ------- ------- -------- ------ ------- ------ -------
1,649 1,896 2,005 2,322 1,027 1,316 296 388
66 153 94 215 55 139 16 41
12 6 19 32 12 15 -- --
789 1,520 128 289 66 137
-- 6 1 8 -- 5 -- 2
-- -- -- -- -- -- -- --
78 59 8 12 5 5 1 1
10 9 11 13 6 8 2 2
5 -- 6 -- 3 -- 1 --
10 6 8 10 6 7 3 2
15 7 13 11 8 7 3 2
2 16 2 16 2 16 2 16
2 5 4 25 2 15 2 2
13 85 5 39 2 17
21 8 22 10 10 6 2 1
2 2 3 3 2 2 -- 1
3 16 11 12 7 5 1 --
------- ------- ------- -------- ------ ------- ------ -------
2,677 3,794 2,340 3,017 1,145 1,546 397 612
(194) (222) (83) (101) -- -- -- --
(4) (6) (4) (22) (8) (25) (2) (2)
(361) (760) (10) (60) (3) (22)
(2) -- (3) -- (2) -- -- --
------- ------- ------- -------- ------ ------- ------ -------
2,116 2,806 2,240 2,834 1,135 1,521 392 588
------- ------- ------- -------- ------ ------- ------ -------
8,682 11,471 9,129 8,954 5,093 6,533 1,554 1,946
------- ------- ------- -------- ------ ------- ------ -------
11,389 2,989 (568) (1,679) 1,570 1,253 354 1,373
(2,779) (6,605) 3,057 (13,732) (547) (9,858) 359 (4,048)
------- ------- ------- -------- ------ ------- ------ -------
8,610 (3,616) 2,489 (15,411) 1,023 (8,605) 713 (2,675)
------- ------- ------- -------- ------ ------- ------ -------
$17,292 $ 7,855 $11,618 $ (6,457) $6,116 $(2,072) $2,267 $ (729)
======= ======= ======= ======== ====== ======= ====== =======
</Table>
See notes to financial statements.
82
STATEMENTS OF CHANGES IN NET ASSETS (000)
STI CLASSIC FIXED INCOME FUNDS For the Periods Indicated
<Table>
<Caption>
Florida Tax-Exempt Georgia Tax-Exempt
Bond Fund Bond Fund
----------------------------------- -----------------------------------
06/01/04- 06/01/03- 06/01/02- 06/01/04- 06/01/03- 06/01/02-
03/31/05 05/31/04 05/31/03 03/31/05 05/31/04 05/31/03
--------- --------- --------- --------- --------- ---------
Operations:
Net Investment Income.............................. $ 4,207 $ 5,453 $ 5,725 $ 2,966 $ 3,771 $ 3,908
Net Realized Gain (Loss) on Investments Sold,
Forward Foreign Currency Contracts and Foreign
Currency Transactions............................ (145) 3,674 2,798 104 3,872 551
Net Change in Unrealized Appreciation
(Depreciation) on Investments, Options, Forward
Foreign Currency Contracts, Foreign Currencies
and Translation of Other Assets and Liabilities
in Foreign Currency.............................. 1,892 (13,497) 9,086 1,978 (10,196) 5,855
-------- -------- -------- -------- -------- --------
Change in Net Assets from Operations............... 5,954 (4,370) 17,609 5,048 (2,553) 10,314
-------- -------- -------- -------- -------- --------
Dividends and Distributions to Shareholders:
Net Investment Income:
T Shares......................................... (3,792) (4,630) (4,598) (2,528) (3,265) (3,399)
A Shares......................................... (150) (170) (203) (70) (91) (87)
L Shares......................................... (280) (662) (920) (232) (416) (421)
Realized Capital Gains:
T Shares......................................... (1,824) (3,033) (625) (2,127) (694) --
A Shares......................................... (84) (106) (26) (64) (19) --
L Shares......................................... (178) (513) (154) (255) (114) --
-------- -------- -------- -------- -------- --------
Total Dividends and Distributions................ (6,308) (9,114) (6,526) (5,276) (4,599) (3,907)
-------- -------- -------- -------- -------- --------
Change in Net Assets from Capital Transactions..... (14,593) 8,552 39,055 (4,144) 3,264 3,211
-------- -------- -------- -------- -------- --------
Change in Net Assets............................... (14,947) (4,932) 50,138 (4,372) (3,888) 9,618
-------- -------- -------- -------- -------- --------
Net Assets:
Beginning of Period................................ 190,923 195,855 145,717 114,199 118,087 108,469
-------- -------- -------- -------- -------- --------
End of Period...................................... $175,976 $190,923 $195,855 $109,827 $114,199 $118,087
======== ======== ======== ======== ======== ========
Undistributed (Distributions in Excess of) Net
Investment Income, End of Period................... $ (11) $ 4 $ 12 $ 138 $ 2 $ 3
======== ======== ======== ======== ======== ========
</Table>
Amounts designated as "--" are either $0 or have been rounded to $0.
83
<Table>
<Caption>
Investment Grade Investment Grade Tax-Exempt
High Income Fund Bond Fund Bond Fund
- --------------------------------- --------------------------------- ---------------------------------
06/01/04- 06/01/03- 06/01/02- 06/01/04- 06/01/03- 06/01/02- 06/01/04- 06/01/03- 06/01/02-
03/31/05 05/31/04 05/31/03 03/31/05 05/31/04 05/31/03 03/31/05 05/31/04 05/31/03
- --------- --------- --------- --------- --------- --------- --------- --------- ---------
$ 7,181 $ 14,340 $ 8,030 $ 16,395 $ 24,241 $ 35,672 $ 5,039 $ 5,375 $ 5,201
5,788 3,353 (988) 2,253 16,393 23,215 4,146 1,822 9,776
(1,932) 931 3,006 9,268 (60,476) 40,999 (262) (8,837) 6,674
- -------- -------- -------- -------- --------- --------- -------- -------- --------
11,037 18,624 10,048 27,916 (19,842) 99,886 8,923 (1,640) 21,651
- -------- -------- -------- -------- --------- --------- -------- -------- --------
(3,412) (7,786) (4,271) (14,908) (24,510) (37,781) (4,663) (4,556) (4,282)
(68) (64) -- (657) (1,058) (1,060) (311) (394) (441)
(3,668) (6,492) (3,759) (405) (857) (1,273) (236) (418) (476)
(1,488) -- -- -- -- -- (3,552) (4,156) (6,535)
(23) -- -- -- -- -- (280) (418) (802)
(1,711) -- -- -- -- -- (267) (595) (1,092)
- -------- -------- -------- -------- --------- --------- -------- -------- --------
(10,370) (14,342) (8,030) (15,970) (26,425) (40,114) (9,309) (10,537) (13,628)
- -------- -------- -------- -------- --------- --------- -------- -------- --------
(44,278) (21,037) 87,621 (1,276) (213,824) (109,242) 45,649 19,573 37,679
- -------- -------- -------- -------- --------- --------- -------- -------- --------
(43,611) (16,755) 89,639 10,670 (260,091) (49,470) 45,263 7,396 45,702
- -------- -------- -------- -------- --------- --------- -------- -------- --------
148,515 165,270 75,631 633,935 894,026 943,496 247,321 239,925 194,223
- -------- -------- -------- -------- --------- --------- -------- -------- --------
$104,904 $148,515 $165,270 $644,605 $ 633,935 $ 894,026 $292,584 $247,321 $239,925
======== ======== ======== ======== ========= ========= ======== ======== ========
$ 32 $ (1) $ 1 $ 881 $ 6 $ 5 $ (162) $ 9 $ 2
======== ======== ======== ======== ========= ========= ======== ======== ========
</Table>
See notes to financial statements.
84
STATEMENTS OF CHANGES IN NET ASSETS (000)
STI CLASSIC FIXED INCOME FUNDS For the Periods Indicated
<Table>
<Caption>
Limited-Term
Federal Mortgage Maryland Municipal
Securities Fund Bond Fund
----------------------------------- -----------------------------------
06/01/04- 06/01/03- 06/01/02- 06/01/04- 06/01/03- 06/01/02-
03/31/05 05/31/04 05/31/03 03/31/05 05/31/04 05/31/03
--------- --------- --------- --------- --------- ---------
Operations:
Net Investment Income.............................. $ 14,576 $ 12,288 $ 7,976 $ 1,215 $ 1,619 $ 1,928
Net Realized Gain (Loss) on Investments Sold,
Forward Foreign Currency Contracts and Foreign
Currency Transactions............................ (3,135) (562) 2,377 316 500 832
Net Change in Unrealized Appreciation
(Depreciation) on Investments, Options, Forward
Foreign Currency Contracts, Foreign Currencies
and Translation of Other Assets and Liabilities
in Foreign Currency.............................. 73 (17,136) 9,868 120 (3,073) 2,803
-------- -------- -------- ------- -------- -------
Change in Net Assets from Operations............... 11,514 (5,410) 20,221 1,651 (954) 5,563
-------- -------- -------- ------- -------- -------
Dividends and Distributions to Shareholders:
Net Investment Income:
T Shares........................................... (13,707) (12,201) (8,520) (900) (996) (1,251)
A Shares........................................... (208) (300) (245)
L Shares........................................... (1,244) (2,707) (2,670) (338) (620) (674)
Realized Capital Gains:
T Shares........................................... -- -- (267) (262) (546) (41)
A Shares........................................... -- -- (9)
L Shares........................................... -- -- (111) (123) (459) (30)
-------- -------- -------- ------- -------- -------
Total Dividends and Distributions.................. (15,159) (15,208) (11,822) (1,623) (2,621) (1,996)
-------- -------- -------- ------- -------- -------
Change in Net Assets from Capital Transactions..... (62,975) 34,962 310,066 (4,417) (7,850) (393)
-------- -------- -------- ------- -------- -------
Change in Net Assets............................... (66,620) 14,344 318,465 (4,389) (11,425) 3,174
-------- -------- -------- ------- -------- -------
Net Assets:
Beginning of Period................................ 514,941 500,597 182,132 48,632 60,057 56,883
-------- -------- -------- ------- -------- -------
End of Period...................................... $448,321 $514,941 $500,597 $44,243 $ 48,632 $60,057
======== ======== ======== ======= ======== =======
Undistributed (Distributions in Excess of) Net
Investment Income, End of Period................... $ 1,404 $ 8 $ 1 $ (40) $ (17) $ (20)
======== ======== ======== ======= ======== =======
</Table>
* Commencement of operations.
Amounts designated as "--" are either $0 or have been rounded to $0.
85
<Table>
<Caption>
North Carolina Short-Term
Tax-Exempt Short-Term U.S. Treasury
Bond Fund Bond Fund Securities Fund
---------------------- --------------------------------- ---------------------------------
06/01/04- 01/08/04*- 06/01/04- 06/01/03- 06/01/02- 06/01/04- 06/01/03- 06/01/02-
03/31/05 05/31/04 03/31/05 05/31/04 05/31/03 03/31/05 05/31/04 05/31/03
--------- ---------- --------- --------- --------- --------- --------- ---------
$ 938 $ 251 $ 6,194 $ 7,861 $ 11,183 $ 1,756 $ 2,576 $ 4,346
(12) -- (168) 1,780 (6,286) (817) 1,438 2,689
633 (864) (3,407) (8,220) 7,359 (534) (4,029) 1,929
------- ------- -------- -------- -------- -------- -------- --------
1,559 (613) 2,619 1,421 12,256 405 (15) 8,964
------- ------- -------- -------- -------- -------- -------- --------
(1,006) (251) (5,829) (7,288) (10,196) (1,169) (1,437) (2,438)
-- -- (116) (147) (148) (117) (199) (191)
-- -- (303) (569) (836) (471) (940) (1,717)
(124) -- -- -- -- (749) (1,216) (688)
-- -- -- -- -- (63) (199) (62)
-- -- -- -- -- (391) (1,134) (649)
------- ------- -------- -------- -------- -------- -------- --------
(1,130) (251) (6,248) (8,004) (11,180) (2,960) (5,125) (5,745)
------- ------- -------- -------- -------- -------- -------- --------
7,612 33,621 1,432 (22,822) 1,882 (54,791) (92,366) 79,089
------- ------- -------- -------- -------- -------- -------- --------
8,041 32,757 (2,197) (29,405) 2,958 (57,346) (97,506) 82,308
------- ------- -------- -------- -------- -------- -------- --------
32,757 -- 311,596 341,001 338,043 167,426 264,932 182,624
------- ------- -------- -------- -------- -------- -------- --------
$40,798 $32,757 $309,399 $311,596 $341,001 $110,080 $167,426 $264,932
======= ======= ======== ======== ======== ======== ======== ========
$ (64) $ -- $ 165 $ 10 $ 3 $ (1) $ -- $ --
======= ======= ======== ======== ======== ======== ======== ========
</Table>
See notes to financial statements.
86
STATEMENTS OF CHANGES IN NET ASSETS (000)
STI CLASSIC FIXED INCOME FUNDS For the Periods Indicated
<Table>
<Caption>
Strategic Income Fund
-----------------------------------
06/01/04- 06/01/03- 06/01/02-
03/31/05 05/31/04 05/31/03
--------- --------- ---------
Operations:
Net Investment Income..................................... $ 8,682 $ 11,471 $ 6,980
Net Realized Gain (Loss) on Investments Sold, Forward
Foreign Currency Contracts and Foreign Currency
Transactions............................................ 11,389 2,989 (3,307)
Net Change in Unrealized Appreciation (Depreciation) on
Investments, Options, Forward Foreign Currency
Contracts, Foreign Currencies and Translation of Other
Assets and Liabilities in Foreign Currency.............. (2,779) (6,605) 8,140
-------- -------- --------
Change in Net Assets from Operations...................... 17,292 7,855 11,813
-------- -------- --------
Dividends and Distributions to Shareholders:
Net Investment Income:
T Shares................................................ (4,949) (3,651) (3,391)
A Shares................................................ (150) (81) --
L Shares................................................ (3,275) (7,336) (3,676)
Realized Capital Gains:
T Shares................................................ (733) (423) --
A Shares................................................ (26) (19) --
L Shares................................................ (535) (792) --
-------- -------- --------
Total Dividends and Distributions....................... (9,668) (12,302) (7,067)
-------- -------- --------
Change in Net Assets from Capital Transactions............ 52,917 32,543 103,918
-------- -------- --------
Change in Net Assets...................................... 60,541 28,096 108,664
-------- -------- --------
Net Assets:
Beginning of Period....................................... 219,967 191,871 83,207
-------- -------- --------
End of Period............................................. $280,508 $219,967 $191,871
======== ======== ========
Undistributed (Distributions in Excess of) Net Investment
Income, End of Period..................................... $ 4,052 $ (1,028) $ (3,788)
======== ======== ========
</Table>
Amounts designated as "--" are either $0 or have been rounded to $0.
87
<Table>
<Caption>
U.S. Government Virginia Intermediate Municipal Virginia Municipal
Securities Fund Bond Fund Bond Fund
--------------------------------- --------------------------------- ---------------------------------
06/01/04- 06/01/03- 06/01/02- 06/01/04- 06/01/03- 06/01/02- 06/01/04- 06/01/03- 06/01/02-
03/31/05 05/31/04 05/31/03 03/31/05 05/31/04 05/31/03 03/31/05 05/31/04 05/31/03
--------- --------- --------- --------- --------- --------- --------- --------- ---------
$ 9,129 $ 8,954 $ 10,089 $ 5,093 $ 6,533 $ 7,253 $ 1,554 $ 1,946 $ 2,368
(568) (1,679) 3,921 1,570 1,253 2,169 354 1,373 896
3,057 (13,732) 8,184 (547) (9,858) 7,601 359 (4,048) 2,913
-------- -------- -------- -------- -------- -------- ------- -------- -------
11,618 (6,457) 22,194 6,116 (2,072) 17,023 2,267 (729) 6,177
-------- -------- -------- -------- -------- -------- ------- -------- -------
(9,141) (9,197) (9,284) (4,860) (6,203) (6,987) (1,394) (1,596) (1,962)
(160) (243) (271) (260) (324) (272) (3) -- --
(341) (696) (1,246) (172) (353) (408)
-- (922) (548) (1,533) (1,617) (1,900) (725) (996) (136)
-- (24) (13) (80) (78) (69) (2) -- --
-- (92) (91) (113) (278) (40)
-------- -------- -------- -------- -------- -------- ------- -------- -------
(9,642) (11,174) (11,453) (6,733) (8,222) (9,228) (2,409) (3,223) (2,546)
-------- -------- -------- -------- -------- -------- ------- -------- -------
5,917 36,764 87,586 (7,405) (14,498) 10,458 1,539 (7,763) (8,587)
-------- -------- -------- -------- -------- -------- ------- -------- -------
7,893 19,133 98,327 (8,022) (24,792) 18,253 1,397 (11,715) (4,956)
-------- -------- -------- -------- -------- -------- ------- -------- -------
326,474 307,341 209,014 192,124 216,916 198,663 53,343 65,058 70,014
-------- -------- -------- -------- -------- -------- ------- -------- -------
$334,367 $326,474 $307,341 $184,102 $192,124 $216,916 $54,740 $ 53,343 $65,058
======== ======== ======== ======== ======== ======== ======= ======== =======
$ 607 $ 1 $ 3 $ (8) $ 19 $ 13 $ (14) $ 1 $ 4
======== ======== ======== ======== ======== ======== ======= ======== =======
</Table>
See notes to financial statements.
88
FINANCIAL HIGHLIGHTS
STI CLASSIC FIXED INCOME FUNDS
Selected Data For a Share of Beneficial Interest Outstanding Throughout the
Periods Indicated.
<Table>
<Caption>
Net Realized
Net Asset and Unrealized
Value, Net Gains (Losses) Dividends From Distributions
Beginning of Investment on Investments Total From Net Investment From Realized
Period Income Options Operations Income Capital Gains
------------ ---------- -------------- ---------- -------------- -------------
FLORIDA TAX-EXEMPT BOND FUND
T Shares
Period Ended March 31, 2005* $10.93 0.26 0.10 0.36 (0.26) (0.13)
Year Ended May 31, 2004 $11.69 0.32(a) (0.56)(a) (0.24) (0.32) (0.20)
Year Ended May 31, 2003 $10.95 0.40 0.79 1.19 (0.40) (0.05)
Year Ended May 31, 2002 $10.79 0.40 0.22 0.62 (0.40) (0.06)
Year Ended May 31, 2001 $10.06 0.44 0.73 1.17 (0.44) --
Year Ended May 31, 2000 $10.59 0.44 (0.49) (0.05) (0.44) (0.04)
A Shares
Period Ended March 31, 2005* $10.93 0.25 0.11 0.36 (0.25) (0.13)
Year Ended May 31, 2004 $11.69 0.30(a) (0.56)(a) (0.26) (0.30) (0.20)
Year Ended May 31, 2003 $10.95 0.38 0.79 1.17 (0.38) (0.05)
Year Ended May 31, 2002 $10.79 0.38 0.22 0.60 (0.38) (0.06)
Year Ended May 31, 2001 $10.07 0.42 0.72 1.14 (0.42) --
Year Ended May 31, 2000 $10.60 0.42 (0.49) (0.07) (0.42) (0.04)
L Shares
Period Ended March 31, 2005* $10.96 0.19 0.10 0.29 (0.19) (0.13)
Year Ended May 31, 2004 $11.71 0.24(a) (0.55)(a) (0.31) (0.24) (0.20)
Year Ended May 31, 2003 $10.97 0.32 0.79 1.11 (0.32) (0.05)
Year Ended May 31, 2002 $10.81 0.32 0.22 0.54 (0.32) (0.06)
Year Ended May 31, 2001 $10.09 0.37 0.72 1.09 (0.37) --
Year Ended May 31, 2000 $10.62 0.36 (0.49) (0.13) (0.36) (0.04)
GEORGIA TAX-EXEMPT BOND FUND
T Shares
Period Ended March 31, 2005* $10.24 0.28 0.20 0.48 (0.27) (0.24)
Year Ended May 31, 2004 $10.89 0.34(a) (0.58)(a) (0.24) (0.34) (0.07)
Year Ended May 31, 2003 $10.29 0.38 0.60 0.98 (0.38) --
Year Ended May 31, 2002 $10.10 0.39 0.19 0.58 (0.39) --
Year Ended May 31, 2001 $ 9.50 0.40 0.60 1.00 (0.40) --
Year Ended May 31, 2000 $10.03 0.40 (0.49) (0.09) (0.40) (0.04)
A Shares
Period Ended March 31, 2005* $10.25 0.27 0.20 0.47 (0.26) (0.24)
Year Ended May 31, 2004 $10.90 0.32(a) (0.58)(a) (0.26) (0.32) (0.07)
Year Ended May 31, 2003 $10.31 0.35 0.59 0.94 (0.35) --
Year Ended May 31, 2002 $10.12 0.37 0.19 0.56 (0.37) --
Year Ended May 31, 2001 $ 9.51 0.38 0.61 0.99 (0.38) --
Year Ended May 31, 2000 $10.05 0.38 (0.50) (0.12) (0.38) (0.04)
L Shares
Period Ended March 31, 2005* $10.25 0.22 0.20 0.42 (0.21) (0.24)
Year Ended May 31, 2004 $10.90 0.27(a) (0.58)(a) (0.31) (0.27) (0.07)
Year Ended May 31, 2003 $10.30 0.30 0.60 0.90 (0.30) --
Year Ended May 31, 2002 $10.11 0.32 0.19 0.51 (0.32) --
Year Ended May 31, 2001 $ 9.51 0.33 0.60 0.93 (0.33) --
Year Ended May 31, 2000 $10.04 0.33 (0.49) (0.16) (0.33) (0.04)
<Caption>
Total
Dividends and
Distributions
-------------
FLORIDA TAX-EXEMPT BOND FUND
T Shares
Period Ended March 31, 2005* (0.39)
Year Ended May 31, 2004 (0.52)
Year Ended May 31, 2003 (0.45)
Year Ended May 31, 2002 (0.46)
Year Ended May 31, 2001 (0.44)
Year Ended May 31, 2000 (0.48)
A Shares
Period Ended March 31, 2005* (0.38)
Year Ended May 31, 2004 (0.50)
Year Ended May 31, 2003 (0.43)
Year Ended May 31, 2002 (0.44)
Year Ended May 31, 2001 (0.42)
Year Ended May 31, 2000 (0.46)
L Shares
Period Ended March 31, 2005* (0.32)
Year Ended May 31, 2004 (0.44)
Year Ended May 31, 2003 (0.37)
Year Ended May 31, 2002 (0.38)
Year Ended May 31, 2001 (0.37)
Year Ended May 31, 2000 (0.40)
GEORGIA TAX-EXEMPT BOND FUND
T Shares
Period Ended March 31, 2005* (0.51)
Year Ended May 31, 2004 (0.41)
Year Ended May 31, 2003 (0.38)
Year Ended May 31, 2002 (0.39)
Year Ended May 31, 2001 (0.40)
Year Ended May 31, 2000 (0.44)
A Shares
Period Ended March 31, 2005* (0.50)
Year Ended May 31, 2004 (0.39)
Year Ended May 31, 2003 (0.35)
Year Ended May 31, 2002 (0.37)
Year Ended May 31, 2001 (0.38)
Year Ended May 31, 2000 (0.42)
L Shares
Period Ended March 31, 2005* (0.45)
Year Ended May 31, 2004 (0.34)
Year Ended May 31, 2003 (0.30)
Year Ended May 31, 2002 (0.32)
Year Ended May 31, 2001 (0.33)
Year Ended May 31, 2000 (0.37)
</Table>
89
<Table>
<Caption>
Ratio of Expenses to
Average Net Assets
Net Assets Net Assets, Ratio of Net Ratio of Net (Excluding Waivers, Portfolio
Value, End Total End of Expenses to Investment Income to Reimbursements and Turnover
of Period Return+ Period (000) Average Net Assets++ Average Net Assets++ Expense Offset)++ Rate
- ---------- ------- ------------ -------------------- -------------------- --------------------- ---------
$10.90 3.31% $157,500 0.67% 2.84% 0.71% 66%
$10.93 (2.07)% $165,065 0.71% 2.82% 0.75% 56%
$11.69 11.13% $147,423 0.71% 3.54% 0.75% 62%
$10.95 5.88% $120,885 0.71% 3.65% 0.76% 91%
$10.79 11.84% $107,867 0.71% 4.19% 0.76% 59%
$10.06 (0.48)% $ 93,040 0.67% 4.25% 0.78% 88%
$10.91 3.24% $ 6,129 0.86% 2.65% 0.94% 66%
$10.93 (2.28)% $ 5,906 0.92% 2.62% 1.13% 56%
$11.69 10.89% $ 8,191 0.92% 3.29% 1.13% 62%
$10.95 5.66% $ 2,935 0.92% 3.44% 1.37% 91%
$10.79 11.50% $ 2,747 0.91% 4.00% 1.38% 59%
$10.07 (0.68)% $ 2,875 0.87% 4.05% 1.36% 88%
$10.93 2.66% $ 12,347 1.42% 2.09% 1.73% 66%
$10.96 (2.68)% $ 19,952 1.42% 2.14% 1.81% 56%
$11.71 10.32% $ 40,241 1.42% 2.81% 1.80% 62%
$10.97 5.15% $ 21,897 1.42% 2.93% 1.84% 91%
$10.81 10.95% $ 12,806 1.41% 3.49% 1.89% 59%
$10.09 (1.17)% $ 9,791 1.37% 3.54% 1.89% 88%
$10.21 4.73% $ 96,503 0.67% 3.31% 0.71% 52%
$10.24 (2.18)% $ 98,113 0.71% 3.26% 0.76% 100%
$10.89 9.64% $ 98,866 0.71% 3.55% 0.76% 17%
$10.29 5.81% $ 91,356 0.71% 3.79% 0.76% 23%
$10.10 10.67% $ 85,880 0.71% 4.03% 0.77% 21%
$ 9.50 (0.90)% $ 81,160 0.67% 4.13% 0.77% 19%
$10.22 4.57% $ 2,660 0.86% 3.12% 0.99% 52%
$10.25 (2.39)% $ 2,735 0.92% 3.06% 1.36% 100%
$10.90 9.29% $ 2,630 0.92% 3.34% 1.41% 17%
$10.31 5.58% $ 2,844 0.92% 3.58% 1.36% 23%
$10.12 10.56% $ 2,901 0.91% 3.83% 1.42% 21%
$ 9.51 (1.26)% $ 2,458 0.87% 3.93% 1.40% 19%
$10.22 4.09% $ 10,664 1.42% 2.56% 1.73% 52%
$10.25 (2.87)% $ 13,351 1.42% 2.55% 1.84% 100%
$10.90 8.86% $ 16,591 1.42% 2.84% 1.84% 17%
$10.30 5.07% $ 14,269 1.42% 3.08% 1.84% 23%
$10.11 9.92% $ 14,079 1.41% 3.33% 1.89% 21%
$ 9.51 (1.59)% $ 8,827 1.37% 3.43% 1.95% 19%
</Table>
See notes to financial highlights and notes to financial statements.
90
FINANCIAL HIGHLIGHTS
STI CLASSIC FIXED INCOME FUNDS
Selected Data For a Share of Beneficial Interest Outstanding Throughout the
Periods Indicated.
<Table>
<Caption>
Net Realized
Net Asset and Unrealized
Value, Net Gains (Losses) Dividends From Distributions
Beginning of Investment on Investments Total From Net Investment From Realized
Period Income Options Operations Income Capital Gains
------------ ---------- -------------- ---------- -------------- -------------
HIGH INCOME FUND
T Shares
Period Ended March 31, 2005* $ 7.38 0.46 0.21 0.67 (0.46) (0.21)
Year Ended May 31, 2004 $ 7.16 0.62(a) 0.22(a) 0.84 (0.62) --
Year Ended May 31, 2003 $ 7.25 0.61 (0.09) 0.52 (0.61) --
Period Ended May 31, 2002(b) $ 7.37 0.39 (0.12) 0.27 (0.39) --
A Shares
Period Ended March 31, 2005* $ 7.38 0.44 0.22 0.66 (0.44) (0.21)
Period Ended May 31, 2004(c) $ 7.39 0.35(a) (0.01)(a) 0.34 (0.35) --
L Shares
Period Ended March 31, 2005* $ 7.38 0.42 0.21 0.63 (0.42) (0.21)
Year Ended May 31, 2004 $ 7.16 0.57(a) 0.22(a) 0.79 (0.57) --
Year Ended May 31, 2003 $ 7.25 0.57 (0.09) 0.48 (0.57) --
Year Ended May 31, 2002 $ 7.69 0.55 (0.44) 0.11 (0.55) --
Year Ended May 31, 2001 $ 7.88 0.55 (0.19) 0.36 (0.55) --
Period Ended May 31, 2000(d) $ 7.98 0.09 (0.10) (0.01) (0.09) --
Year Ended March 31, 2000 $ 9.77 0.87 (1.85) (0.98) (0.81) --
INVESTMENT GRADE BOND FUND
T Shares
Period Ended March 31, 2005* $10.31 0.29 0.19 0.48 (0.28) --
Year Ended May 31, 2004 $10.94 0.35(a) (0.60)(a) (0.25) (0.38) --
Year Ended May 31, 2003 $10.24 0.40 0.76 1.16 (0.46) --
Year Ended May 31, 2002 $10.23 0.51 0.01 0.52 (0.51) --
Year Ended May 31, 2001 $ 9.58 0.61 0.65 1.26 (0.61) --
Year Ended May 31, 2000 $10.36 0.61 (0.78) (0.17) (0.61) --
A Shares
Period Ended March 31, 2005* $10.31 0.26 0.18 0.44 (0.25) --
Year Ended May 31, 2004 $10.94 0.31(a) (0.60)(a) (0.29) (0.34) --
Year Ended May 31, 2003 $10.24 0.38 0.74 1.12 (0.42) --
Year Ended May 31, 2002 $10.23 0.48 0.01 0.49 (0.48) --
Year Ended May 31, 2001 $ 9.58 0.57 0.65 1.22 (0.57) --
Year Ended May 31, 2000 $10.36 0.57 (0.78) (0.21) (0.57) --
L Shares
Period Ended March 31, 2005* $10.31 0.21 0.19 0.40 (0.20) --
Year Ended May 31, 2004 $10.95 0.25(a) (0.60)(a) (0.35) (0.29) --
Year Ended May 31, 2003 $10.25 0.31 0.76 1.07 (0.37) --
Year Ended May 31, 2002 $10.24 0.42 0.01 0.43 (0.42) --
Year Ended May 31, 2001 $ 9.59 0.53 0.65 1.18 (0.53) --
Year Ended May 31, 2000 $10.37 0.52 (0.78) (0.26) (0.52) --
<Caption>
Total
Dividends and
Distributions
-------------
HIGH INCOME FUND
T Shares
Period Ended March 31, 2005* (0.67)
Year Ended May 31, 2004 (0.62)
Year Ended May 31, 2003 (0.61)
Period Ended May 31, 2002(b) (0.39)
A Shares
Period Ended March 31, 2005* (0.65)
Period Ended May 31, 2004(c) (0.35)
L Shares
Period Ended March 31, 2005* (0.63)
Year Ended May 31, 2004 (0.57)
Year Ended May 31, 2003 (0.57)
Year Ended May 31, 2002 (0.55)
Year Ended May 31, 2001 (0.55)
Period Ended May 31, 2000(d) (0.09)
Year Ended March 31, 2000 (0.81)
INVESTMENT GRADE BOND FUND
T Shares
Period Ended March 31, 2005* (0.28)
Year Ended May 31, 2004 (0.38)
Year Ended May 31, 2003 (0.46)
Year Ended May 31, 2002 (0.51)
Year Ended May 31, 2001 (0.61)
Year Ended May 31, 2000 (0.61)
A Shares
Period Ended March 31, 2005* (0.25)
Year Ended May 31, 2004 (0.34)
Year Ended May 31, 2003 (0.42)
Year Ended May 31, 2002 (0.48)
Year Ended May 31, 2001 (0.57)
Year Ended May 31, 2000 (0.57)
L Shares
Period Ended March 31, 2005* (0.20)
Year Ended May 31, 2004 (0.29)
Year Ended May 31, 2003 (0.37)
Year Ended May 31, 2002 (0.42)
Year Ended May 31, 2001 (0.53)
Year Ended May 31, 2000 (0.52)
</Table>
91
<Table>
<Caption>
Ratio of Expenses to
Ratio of Net Average Net Assets
Net Assets Net Assets, Ratio of Net Investment (Excluding Waivers, Portfolio
Value, End Total End of Expenses to Income to Reimbursements and Turnover
of Period Return+ Period (000) Average Net Assets++ Average Net Assets++ Expense Offset)++ Rate
---------- ------- ------------ -------------------- -------------------- --------------------- ---------
$ 7.38 9.31% $ 51,318 0.73% 7.47% 0.87% 191%
$ 7.38 11.94% $ 71,314 0.76% 8.27% 0.91% 49%
$ 7.16 8.19% $100,852 0.78% 8.95% 0.93% 20%
$ 7.25 3.70% $ 28,767 0.82% 8.27% 0.97% 59%
$ 7.39 9.17% $ 739 1.03% 7.34% 1.39% 191%
$ 7.38 4.61% $ 1,508 1.10% 7.80% 1.88% 49%
$ 7.38 8.69% $ 52,847 1.40% 6.78% 1.88% 191%
$ 7.38 11.23% $ 75,693 1.40% 7.62% 1.98% 49%
$ 7.16 7.52% $ 64,418 1.40% 8.43% 2.00% 20%
$ 7.25 1.46% $ 46,864 1.40% 7.35% 2.02% 59%
$ 7.69 4.74% $ 19,875 1.40% 6.88% 2.13% 10%
$ 7.88 (0.13)% $ 3,075 1.40% 6.57% 2.83% --%
$ 7.98 (10.84)% $ 2,032 1.73% 8.94% 2.95% 24%
$10.51 4.71% $602,995 0.78% 3.31% 0.80% 268%
$10.31 (2.31)% $578,345 0.82% 3.29% 0.84% 119%
$10.94 11.61% $821,342 0.81% 3.92% 0.83% 137%
$10.24 5.18% $886,471 0.81% 4.81% 0.83% 123%
$10.23 13.55% $860,073 0.81% 6.17% 0.84% 131%
$ 9.58 (1.76)% $998,596 0.77% 6.05% 0.84% 202%
$10.50 4.24% $ 23,687 1.21% 2.90% 1.26% 268%
$10.31 (2.70)% $ 31,263 1.22% 2.90% 1.38% 119%
$10.94 11.16% $ 34,874 1.22% 3.45% 1.38% 137%
$10.24 4.81% $ 20,825 1.22% 4.40% 1.40% 123%
$10.23 13.09% $ 21,244 1.21% 5.77% 1.42% 131%
$ 9.58 (2.17)% $ 22,553 1.17% 5.60% 1.37% 202%
$10.51 3.90% $ 17,923 1.71% 2.39% 1.84% 268%
$10.31 (3.27)% $ 24,327 1.71% 2.40% 2.00% 119%
$10.95 10.61% $ 37,810 1.71% 3.01% 1.97% 137%
$10.25 4.27% $ 36,200 1.71% 3.90% 1.96% 123%
$10.24 12.54% $ 25,791 1.70% 5.24% 1.99% 131%
$ 9.59 (2.63)% $ 20,056 1.66% 5.14% 1.99% 202%
</Table>
See notes to financial highlights and notes to financial statements.
92
FINANCIAL HIGHLIGHTS
STI CLASSIC FIXED INCOME FUNDS
Selected Data For a Share of Beneficial Interest Outstanding Throughout the
Periods Indicated.
<Table>
<Caption>
Net Realized
Net Asset and Unrealized
Value, Net Gains (Losses) Dividends From Distributions
Beginning of Investment on Investments Total From Net Investment From Realized
Period Income Options Operations Income Capital Gains
------------ ---------- -------------- ---------- -------------- ------------------
INVESTMENT GRADE TAX-EXEMPT BOND FUND
T Shares
Period Ended March 31, 2005* $11.44 0.23 0.20 0.43 (0.24) (0.18)
Year Ended May 31, 2004 $12.01 0.27(a) (0.32)(a) (0.05) (0.27) (0.25)
Year Ended May 31, 2003 $11.57 0.30 0.90 1.20 (0.30) (0.46)
Year Ended May 31, 2002 $11.38 0.34 0.46 0.80 (0.34) (0.27)
Year Ended May 31, 2001 $10.67 0.44 0.71 1.15 (0.44) --
Year Ended May 31, 2000 $11.10 0.43 (0.29) 0.14 (0.43) (0.14)
A Shares
Period Ended March 31, 2005* $11.46 0.19 0.19 0.38 (0.20) (0.18)
Year Ended May 31, 2004 $12.03 0.23(a) (0.33)(a) (0.10) (0.22) (0.25)
Year Ended May 31, 2003 $11.58 0.25 0.91 1.16 (0.25) (0.46)
Year Ended May 31, 2002 $11.39 0.29 0.46 0.75 (0.29) (0.27)
Year Ended May 31, 2001 $10.68 0.40 0.71 1.11 (0.40) --
Year Ended May 31, 2000 $11.12 0.39 (0.30) 0.09 (0.39) (0.14)
L Shares
Period Ended March 31, 2005* $11.44 0.14 0.19 0.33 (0.15) (0.18)
Year Ended May 31, 2004 $12.01 0.17(a) (0.32)(a) (0.15) (0.17) (0.25)
Year Ended May 31, 2003 $11.57 0.20 0.90 1.10 (0.20) (0.46)
Year Ended May 31, 2002 $11.38 0.24 0.46 0.70 (0.24) (0.27)
Year Ended May 31, 2001 $10.67 0.34 0.71 1.05 (0.34) --
Year Ended May 31, 2000 $11.10 0.34 (0.29) 0.05 (0.34) (0.14)
LIMITED-TERM FEDERAL MORTGAGE SECURITIES FUND
T Shares
Period Ended March 31, 2005* $10.18 0.31 (0.08) 0.23 (0.32) --
Year Ended May 31, 2004 $10.59 0.24(a) (0.36)(a) (0.12) (0.29) --
Year Ended May 31, 2003 $10.31 0.29(a) 0.42(a) 0.71 (0.42) (0.01)
Year Ended May 31, 2002 $10.01 0.43 0.32 0.75 (0.43) (0.02)
Year Ended May 31, 2001 $ 9.62 0.55 0.39 0.94 (0.55) --
Year Ended May 31, 2000 $ 9.94 0.55 (0.32) 0.23 (0.55) --
A Shares
Period Ended March 31, 2005* $10.16 0.29 (0.08) 0.21 (0.30) --
Year Ended May 31, 2004 $10.57 0.21(a) (0.35)(a) (0.14) (0.27) --
Year Ended May 31, 2003 $10.29 0.24(a) 0.44(a) 0.68 (0.39) (0.01)
Year Ended May 31, 2002 $10.00 0.40 0.31 0.71 (0.40) (0.02)
Year Ended May 31, 2001 $ 9.60 0.53 0.40 0.93 (0.53) --
Year Ended May 31, 2000 $ 9.93 0.52 (0.33) 0.19 (0.52) --
L Shares
Period Ended March 31, 2005* $10.18 0.25 (0.07) 0.18 (0.26) --
Year Ended May 31, 2004 $10.59 0.17(a) (0.35)(a) (0.18) (0.23) --
Year Ended May 31, 2003 $10.31 0.21(a) 0.43(a) 0.64 (0.35) (0.01)
Year Ended May 31, 2002 $10.02 0.37 0.31 0.68 (0.37) (0.02)
Year Ended May 31, 2001 $ 9.62 0.50 0.40 0.90 (0.50) --
Year Ended May 31, 2000 $ 9.94 0.49 (0.32) 0.17 (0.49) --
<Caption>
Total
Dividends and
Distributions
-------------
INVESTMENT GRADE TAX-EXEMPT BO
T Shares
Period Ended March 31, 2005* (0.42)
Year Ended May 31, 2004 (0.52)
Year Ended May 31, 2003 (0.76)
Year Ended May 31, 2002 (0.61)
Year Ended May 31, 2001 (0.44)
Year Ended May 31, 2000 (0.57)
A Shares
Period Ended March 31, 2005* (0.38)
Year Ended May 31, 2004 (0.47)
Year Ended May 31, 2003 (0.71)
Year Ended May 31, 2002 (0.56)
Year Ended May 31, 2001 (0.40)
Year Ended May 31, 2000 (0.53)
L Shares
Period Ended March 31, 2005* (0.33)
Year Ended May 31, 2004 (0.42)
Year Ended May 31, 2003 (0.66)
Year Ended May 31, 2002 (0.51)
Year Ended May 31, 2001 (0.34)
Year Ended May 31, 2000 (0.48)
LIMITED-TERM FEDERAL MORTGAGE
T Shares
Period Ended March 31, 2005* (0.32)
Year Ended May 31, 2004 (0.29)
Year Ended May 31, 2003 (0.43)
Year Ended May 31, 2002 (0.45)
Year Ended May 31, 2001 (0.55)
Year Ended May 31, 2000 (0.55)
A Shares
Period Ended March 31, 2005* (0.30)
Year Ended May 31, 2004 (0.27)
Year Ended May 31, 2003 (0.40)
Year Ended May 31, 2002 (0.42)
Year Ended May 31, 2001 (0.53)
Year Ended May 31, 2000 (0.52)
L Shares
Period Ended March 31, 2005* (0.26)
Year Ended May 31, 2004 (0.23)
Year Ended May 31, 2003 (0.36)
Year Ended May 31, 2002 (0.39)
Year Ended May 31, 2001 (0.50)
Year Ended May 31, 2000 (0.49)
</Table>
93
<Table>
<Caption>
Ratio of Expenses to
Ratio of Net Average Net Assets
Net Assets Net Assets, Ratio of Net Investment (Excluding Waivers, Portfolio
Value, End Total End of Expenses to Income to Reimbursements and Turnover
of Period Return+ Period (000) Average Net Assets++ Average Net Assets++ Expense Offset)++ Rate
- ---------- ------- ------------ -------------------- -------------------- --------------------- ---------
$11.45 3.74% $259,542 0.77% 2.36% 0.80% 178%
$11.44 (0.45)% $205,266 0.81% 2.33% 0.84% 242%
$12.01 10.80% $185,485 0.81% 2.57% 0.84% 329%
$11.57 7.15% $149,200 0.81% 2.93% 0.84% 311%
$11.38 10.93% $134,139 0.81% 3.93% 0.85% 285%
$10.67 1.41% $117,384 0.77% 3.98% 0.83% 226%
$11.46 3.28% $ 17,430 1.20% 1.93% 1.26% 178%
$11.46 (0.85)% $ 19,086 1.22% 1.92% 1.36% 242%
$12.03 10.42% $ 21,756 1.22% 2.16% 1.36% 329%
$11.58 6.71% $ 20,436 1.22% 2.51% 1.36% 311%
$11.39 10.48% $ 18,601 1.21% 3.54% 1.37% 285%
$10.68 0.90% $ 19,443 1.17% 3.59% 1.33% 226%
$11.44 2.86% $ 15,612 1.70% 1.43% 1.82% 178%
$11.44 (1.33)% $ 22,969 1.70% 1.45% 1.92% 242%
$12.01 9.82% $ 32,684 1.70% 1.68% 1.91% 329%
$11.57 6.21% $ 24,587 1.70% 2.03% 1.92% 311%
$11.38 9.97% $ 20,010 1.69% 3.04% 1.96% 285%
$10.67 0.52% $ 14,678 1.65% 3.11% 1.95% 226%
$10.09 2.26% $407,543 0.66% 3.60% 0.71% 41%
$10.18 (1.10)% $435,446 0.70% 2.32% 0.75% 146%
$10.59 6.99% $320,718 0.70% 2.79% 0.75% 117%
$10.31 7.53% $164,624 0.70% 3.72% 0.75% 410%
$10.01 10.02% $107,674 0.70% 5.62% 0.76% 532%
$ 9.62 2.33% $125,355 0.67% 5.60% 0.79% 384%
$10.07 2.07% $ 5,854 0.90% 3.47% 1.00% 41%
$10.16 (1.36)% $ 9,495 0.96% 2.06% 1.17% 146%
$10.57 6.72% $ 13,668 0.96% 2.33% 1.20% 117%
$10.29 7.16% $ 1,578 0.96% 3.50% 2.06% 410%
$10.00 9.84% $ 849 0.95% 5.39% 2.28% 532%
$ 9.60 1.93% $ 1,194 0.92% 5.31% 1.09% 384%
$10.10 1.81% $ 34,924 1.31% 3.04% 1.74% 41%
$10.18 (1.71)% $ 70,000 1.31% 1.68% 1.82% 146%
$10.59 6.33% $166,211 1.31% 1.97% 1.80% 117%
$10.31 6.83% $ 15,930 1.31% 2.88% 1.98% 410%
$10.02 9.50% $ 3,452 1.30% 4.99% 2.60% 532%
$ 9.62 1.71% $ 1,706 1.27% 4.97% 2.38% 384%
</Table>
See notes to financial highlights and notes to financial statements.
94
FINANCIAL HIGHLIGHTS
STI CLASSIC FIXED INCOME FUNDS
Selected Data For a Share of Beneficial Interest Outstanding Throughout the
Periods Indicated.
<Table>
<Caption>
Net Realized
Net Asset and Unrealized
Value, Net Gains (Losses) Dividends From Distributions
Beginning of Investment on Investments Total From Net Investment From Realized
Period Income Options Operations Income Capital Gains
------------ ---------- -------------- ---------- -------------- -------------
MARYLAND MUNICIPAL BOND FUND
T Shares
Period Ended March 31, 2005* $10.27 0.30 0.10 0.40 (0.31) (0.09)
Year Ended May 31, 2004 $10.94 0.36(a) (0.47)(a) (0.11) (0.36) (0.20)
Year Ended May 31, 2003 $10.32 0.37 0.63 1.00 (0.37) (0.01)
Year Ended May 31, 2002 $10.12 0.38 0.20 0.58 (0.38) --
Year Ended May 31, 2001 $ 9.46 0.42 0.66 1.08 (0.42) --
Year Ended May 31, 2000 $10.06 0.42 (0.60) (0.18) (0.42) --
L Shares
Period Ended March 31, 2005* $10.29 0.21 0.10 0.31 (0.22) (0.09)
Year Ended May 31, 2004 $10.96 0.26(a) (0.47)(a) (0.21) (0.26) (0.20)
Year Ended May 31, 2003 $10.34 0.27 0.63 0.90 (0.27) (0.01)
Year Ended May 31, 2002 $10.14 0.29 0.20 0.49 (0.29) --
Year Ended May 31, 2001 $ 9.48 0.33 0.66 0.99 (0.33) --
Year Ended May 31, 2000 $10.08 0.33 (0.60) (0.27) (0.33) --
NORTH CAROLINA TAX-EXEMPT BOND FUND
T Shares
Period Ended March 31, 2005 $ 9.76 0.25 0.14 0.39 (0.25) (0.03)
Period Ended May 31, 2004 (e) $10.00 0.09 (0.24) (0.15) (0.09) --
A Shares
Period Ended March 31, 2005 (f) $ 9.97 0.01 (0.10) (0.09) (0.01) --
L Shares
Period Ended March 31, 2005 (f) $ 9.97 0.01 (0.10) (0.09) (0.01) --
SHORT-TERM BOND FUND
T Shares
Period Ended March 31, 2005* $ 9.84 0.20 (0.11) 0.09 (0.20) --
Year Ended May 31, 2004 $10.04 0.24(a) (0.19)(a) 0.05 (0.25) --
Year Ended May 31, 2003 $10.01 0.33 0.03 0.36 (0.33) --
Year Ended May 31, 2002 $10.04 0.46 (0.03) 0.43 (0.46) --
Year Ended May 31, 2001 $ 9.65 0.56 0.39 0.95 (0.56) --
Year Ended May 31, 2000 $ 9.91 0.53 (0.25) 0.28 (0.53) (0.01)
A Shares
Period Ended March 31, 2005* $ 9.87 0.19 (0.12) 0.07 (0.19) --
Year Ended May 31, 2004 $10.07 0.22(a) (0.20)(a) 0.02 (0.22) --
Year Ended May 31, 2003 $10.04 0.31 0.03 0.34 (0.31) --
Year Ended May 31, 2002 $10.06 0.44 (0.02) 0.42 (0.44) --
Year Ended May 31, 2001 $ 9.67 0.54 0.39 0.93 (0.54) --
Year Ended May 31, 2000 $ 9.93 0.51 (0.25) 0.26 (0.51) (0.01)
L Shares
Period Ended March 31, 2005* $ 9.86 0.16 (0.11) 0.05 (0.16) --
Year Ended May 31, 2004 $10.06 0.19(a) (0.20)(a) (0.01) (0.19) --
Year Ended May 31, 2003 $10.03 0.28 0.03 0.31 (0.28) --
Year Ended May 31, 2002 $10.06 0.40 (0.03) 0.37 (0.40) --
Year Ended May 31, 2001 $ 9.67 0.52 0.39 0.91 (0.52) --
Year Ended May 31, 2000 $ 9.93 0.48 (0.25) 0.23 (0.48) (0.01)
<Caption>
Total
Dividends and
Distributions
-------------
MARYLAND MUNICIPAL BOND FUND
T Shares
Period Ended March 31, 2005* (0.40)
Year Ended May 31, 2004 (0.56)
Year Ended May 31, 2003 (0.38)
Year Ended May 31, 2002 (0.38)
Year Ended May 31, 2001 (0.42)
Year Ended May 31, 2000 (0.42)
L Shares
Period Ended March 31, 2005* (0.31)
Year Ended May 31, 2004 (0.46)
Year Ended May 31, 2003 (0.28)
Year Ended May 31, 2002 (0.29)
Year Ended May 31, 2001 (0.33)
Year Ended May 31, 2000 (0.33)
NORTH CAROLINA TAX-EXEMPT BOND FU
T Shares
Period Ended March 31, 2005 (0.28)
Period Ended May 31, 2004 (e) (0.09)
A Shares
Period Ended March 31, 2005 (f) (0.01)
L Shares
Period Ended March 31, 2005 (f) (0.01)
SHORT-TERM BOND FUND
T Shares
Period Ended March 31, 2005* (0.20)
Year Ended May 31, 2004 (0.25)
Year Ended May 31, 2003 (0.33)
Year Ended May 31, 2002 (0.46)
Year Ended May 31, 2001 (0.56)
Year Ended May 31, 2000 (0.54)
A Shares
Period Ended March 31, 2005* (0.19)
Year Ended May 31, 2004 (0.22)
Year Ended May 31, 2003 (0.31)
Year Ended May 31, 2002 (0.44)
Year Ended May 31, 2001 (0.54)
Year Ended May 31, 2000 (0.52)
L Shares
Period Ended March 31, 2005* (0.16)
Year Ended May 31, 2004 (0.19)
Year Ended May 31, 2003 (0.28)
Year Ended May 31, 2002 (0.40)
Year Ended May 31, 2001 (0.52)
Year Ended May 31, 2000 (0.49)
</Table>
95
<Table>
<Caption>
Ratio of Expenses to
Ratio of Net Average Net Assets
Net Assets Net Assets, Ratio of Net Investment (Excluding Waivers, Portfolio
Value, End Total End of Expenses to Income to Reimbursements and Turnover
of Period Return+ Period (000) Average Net Assets++ Average Net Assets++ Expense Offset)++ Rate
---------- ------- ------------ -------------------- -------------------- --------------------- ---------
$10.27 3.87% $ 31,046 0.64% 3.49% 0.72% 30%
$10.27 (1.06)% $ 29,735 0.72% 3.39% 0.80% 15%
$10.94 9.85% $ 30,501 0.70% 3.47% 0.78% 31%
$10.32 5.80% $ 33,668 0.71% 3.69% 0.79% 45%
$10.12 11.59% $ 26,526 0.72% 4.16% 0.82% 42%
$ 9.46 (1.78)% $ 26,176 0.68% 4.24% 0.80% 14%
$10.29 3.03% $ 13,197 1.63% 2.50% 1.74% 30%
$10.29 (1.97)% $ 18,897 1.64% 2.46% 1.82% 15%
$10.96 8.81% $ 29,556 1.64% 2.52% 1.81% 31%
$10.34 4.84% $ 23,215 1.64% 2.75% 1.83% 45%
$10.14 10.59% $ 12,090 1.63% 3.24% 1.97% 42%
$ 9.48 (2.66)% $ 6,212 1.59% 3.34% 1.95% 14%
$ 9.87 3.97% $ 40,798 0.75% 2.78% 0.82% 32%
$ 9.76 (1.52)% $ 32,757 0.75% 2.45% 2.30% 20%
$ 9.87 (0.89)% $ -- --% 3.84% --% 32%
$ 9.87 (0.90)% $ -- --% 3.70% --% 32%
$ 9.73 0.96% $288,502 0.66% 2.48% 0.71% 64%
$ 9.84 0.45% $282,188 0.70% 2.42% 0.75% 66%
$10.04 3.70% $302,708 0.70% 3.34% 0.75% 89%
$10.01 4.29% $305,884 0.70% 4.48% 0.75% 142%
$10.04 10.13% $215,458 0.70% 5.71% 0.76% 87%
$ 9.65 2.87% $180,402 0.67% 5.40% 0.76% 70%
$ 9.75 0.67% $ 5,783 0.89% 2.26% 1.00% 64%
$ 9.87 0.24% $ 5,880 0.91% 2.21% 1.21% 66%
$10.07 3.47% $ 5,685 0.91% 3.09% 1.28% 89%
$10.04 4.19% $ 5,767 0.91% 4.28% 1.26% 142%
$10.06 9.90% $ 4,176 0.90% 5.47% 1.71% 87%
$ 9.67 2.67% $ 1,446 0.87% 5.20% 1.75% 70%
$ 9.75 0.46% $ 15,114 1.26% 1.88% 1.74% 64%
$ 9.86 (0.11)% $ 23,528 1.26% 1.87% 1.87% 66%
$10.06 3.11% $ 32,608 1.26% 2.74% 1.85% 89%
$10.03 3.75% $ 26,392 1.26% 3.89% 1.87% 142%
$10.06 9.60% $ 10,682 1.25% 5.09% 2.17% 87%
$ 9.67 2.31% $ 2,065 1.22% 4.85% 2.41% 70%
</Table>
See notes to financial highlights and notes to financial statements.
96
FINANCIAL HIGHLIGHTS
STI CLASSIC FIXED INCOME FUNDS
Selected Data For a Share of Beneficial Interest Outstanding Throughout the
Periods Indicated.
<Table>
<Caption>
Net Realized
Net Asset and Unrealized
Value, Net Gains (Losses) Dividends From Distributions
Beginning of Investment on Investments Total From Net Investment From Realized
Period Income Options Operations Income Capital Gains
------------ ---------- -------------- ---------- ----------------- -------------
SHORT-TERM U.S. TREASURY SECURITIES FUND
T Shares
Period Ended March 31, 2005* $10.11 0.14 (0.11) 0.03 (0.14) (0.09)
Year Ended May 31, 2004 $10.36 0.14(a) (0.13)(a) 0.01 (0.14) (0.12)
Year Ended May 31, 2003 $10.20 0.22 0.22 0.44 (0.22) (0.06)
Year Ended May 31, 2002 $10.13 0.37 0.10 0.47 (0.37) (0.03)
Year Ended May 31, 2001 $ 9.85 0.49 0.28 0.77 (0.49) --
Year Ended May 31, 2000 $ 9.95 0.46 (0.10) 0.36 (0.46) --
A Shares
Period Ended March 31, 2005* $10.10 0.13 (0.11) 0.02 (0.13) (0.09)
Year Ended May 31, 2004 $10.35 0.12(a) (0.13)(a) (0.01) (0.12) (0.12)
Year Ended May 31, 2003 $10.19 0.20 0.22 0.42 (0.20) (0.06)
Year Ended May 31, 2002 $10.13 0.35 0.09 0.44 (0.35) (0.03)
Year Ended May 31, 2001 $ 9.85 0.48 0.28 0.76 (0.48) --
Year Ended May 31, 2000 $ 9.95 0.45 (0.10) 0.35 (0.45) --
L Shares
Period Ended March 31, 2005* $10.09 0.10 (0.11) (0.01) (0.10) (0.09)
Year Ended May 31, 2004 $10.34 0.10(a) (0.13)(a) (0.03) (0.10) (0.12)
Year Ended May 31, 2003 $10.18 0.17 0.22 0.39 (0.17) (0.06)
Year Ended May 31, 2002 $10.11 0.33 0.10 0.43 (0.33) (0.03)
Year Ended May 31, 2001 $ 9.83 0.46 0.28 0.74 (0.46) --
Year Ended May 31, 2000 $ 9.93 0.42 (0.10) 0.32 (0.42) --
STRATEGIC INCOME FUND
T Shares
Period Ended March 31, 2005* $ 9.81 0.39(a) 0.49(a) 0.88 (0.39) (0.06)
Year Ended May 31, 2004 $ 9.99 0.55(a) (0.14)(a) 0.41 (0.53) (0.06)
Year Ended May 31, 2003 $ 9.80 0.61 0.20 0.81 (0.62) --
Period Ended May 31, 2002 (g) $10.00 0.27 (0.20) 0.07 (0.27) --
A Shares
Period Ended March 31, 2005* $ 9.82 0.39(a) 0.49(a) 0.88 (0.37) (0.06)
Period Ended May 31, 2004 (h) $ 9.93 0.33(a) (0.07)(a) 0.26 (0.31) (0.06)
L Shares
Period Ended March 31, 2005* $ 9.81 0.37(a) 0.46(a) 0.83 (0.34) (0.06)
Year Ended May 31, 2004 $ 9.99 0.50(a) (0.14)(a) 0.36 (0.48) (0.06)
Year Ended May 31, 2003 $ 9.80 0.57 0.19 0.76 (0.57) --
Period Ended May 31, 2002 (g) $10.00 0.25 (0.20) 0.05 (0.25) --
<Caption>
Total
Dividends and
Distributions
-------------
SHORT-TERM U.S. TREASURY SECURI
T Shares
Period Ended March 31, 2005* (0.23)
Year Ended May 31, 2004 (0.26)
Year Ended May 31, 2003 (0.28)
Year Ended May 31, 2002 (0.40)
Year Ended May 31, 2001 (0.49)
Year Ended May 31, 2000 (0.46)
A Shares
Period Ended March 31, 2005* (0.22)
Year Ended May 31, 2004 (0.24)
Year Ended May 31, 2003 (0.26)
Year Ended May 31, 2002 (0.38)
Year Ended May 31, 2001 (0.48)
Year Ended May 31, 2000 (0.45)
L Shares
Period Ended March 31, 2005* (0.19)
Year Ended May 31, 2004 (0.22)
Year Ended May 31, 2003 (0.23)
Year Ended May 31, 2002 (0.36)
Year Ended May 31, 2001 (0.46)
Year Ended May 31, 2000 (0.42)
STRATEGIC INCOME FUND
T Shares
Period Ended March 31, 2005* (0.45)
Year Ended May 31, 2004 (0.59)
Year Ended May 31, 2003 (0.62)
Period Ended May 31, 2002 (g) (0.27)
A Shares
Period Ended March 31, 2005* (0.43)
Period Ended May 31, 2004 (h) (0.37)
L Shares
Period Ended March 31, 2005* (0.40)
Year Ended May 31, 2004 (0.54)
Year Ended May 31, 2003 (0.57)
Period Ended May 31, 2002 (g) (0.25)
</Table>
97
<Table>
<Caption>
Ratio of Expenses to
Ratio of Net Average Net Assets
Net Assets Net Assets, Ratio of Net Investment (Excluding Waivers, Portfolio
Value, End Total End of Expenses to Income to Reimbursements and Turnover
of Period Return+ Period (000) Average Net Assets++ Average Net Assets++ Expense Offset)++ Rate
---------- ------- ------------ -------------------- -------------------- --------------------- ---------
$ 9.91 0.35% $ 69,935 0.65% 1.68% 0.71% 82%
$10.11 0.11% $ 92,371 0.70% 1.36% 0.76% 131%
$10.36 4.31% $121,617 0.69% 2.07% 0.75% 140%
$10.20 4.69% $107,169 0.70% 3.57% 0.76% 117%
$10.13 8.02% $ 88,398 0.71% 4.95% 0.78% 87%
$ 9.85 3.75% $ 72,570 0.67% 4.70% 0.79% 50%
$ 9.90 0.21% $ 6,349 0.84% 1.47% 0.95% 82%
$10.10 (0.06)% $ 12,823 0.86% 1.20% 1.06% 131%
$10.35 4.13% $ 15,558 0.86% 1.76% 1.07% 140%
$10.19 4.44% $ 4,735 0.86% 3.36% 1.41% 117%
$10.13 7.87% $ 2,179 0.85% 4.81% 1.56% 87%
$ 9.85 3.58% $ 2,066 0.82% 4.50% 1.44% 50%
$ 9.89 (0.03)% $ 33,796 1.12% 1.22% 1.74% 82%
$10.09 (0.30)% $ 62,232 1.11% 0.97% 1.82% 131%
$10.34 3.88% $127,757 1.11% 1.59% 1.79% 140%
$10.18 4.29% $ 70,720 1.11% 3.09% 1.81% 117%
$10.11 7.67% $ 27,861 1.10% 4.45% 1.96% 87%
$ 9.83 3.34% $ 5,391 1.07% 4.26% 2.04% 50%
$10.24 9.10% $196,921 0.86% 4.55% 0.96% 305%
$ 9.81 4.15% $ 98,570 0.90% 5.53% 1.00% 95%
$ 9.99 8.73% $ 61,906 0.91% 6.39% 1.01% 52%
$ 9.80 0.74% $ 43,717 0.94% 6.07% 1.04% 43%
$10.27 9.04% $ 3,795 1.15% 4.59% 1.37% 305%
$ 9.82 2.59% $ 4,181 1.15% 5.15% 1.60% 95%
$10.24 8.60% $ 79,792 1.42% 4.34% 1.98% 305%
$ 9.81 3.59% $117,216 1.43% 4.98% 2.03% 95%
$ 9.99 8.16% $129,965 1.43% 5.67% 2.04% 52%
$ 9.80 0.55% $ 39,490 1.53% 5.49% 2.07% 43%
</Table>
See notes to financial highlights and notes to financial statements.
98
FINANCIAL HIGHLIGHTS
STI CLASSIC FIXED INCOME FUNDS
Selected Data For a Share of Beneficial Interest Outstanding Throughout the
Periods Indicated.
<Table>
<Caption>
Net Realized
Net Asset and Unrealized
Value, Net Gains (Losses) Dividends From Distributions
Beginning of Investment on Investments Total From Net Investment From Realized
Period Income Options Operations Income Capital Gains
------------ ---------- -------------- ---------- -------------- -------------
U.S. GOVERNMENT SECURITIES FUND
T Shares
Period Ended March 31, 2005* $10.35 0.29 0.09 0.38 (0.31) --
Year Ended May 31, 2004 $10.93 0.31(a) (0.50)(a) (0.19) (0.35) (0.04)
Year Ended May 31, 2003 $10.47 0.44 0.51 0.95 (0.46) (0.03)
Year Ended May 31, 2002 $10.38 0.54 0.26 0.80 (0.54) (0.17)
Year Ended May 31, 2001 $ 9.86 0.58 0.52 1.10 (0.58) --
Year Ended May 31, 2000 $10.28 0.58 (0.42) 0.16 (0.58) --
A Shares
Period Ended March 31, 2005* $10.35 0.26 0.08 0.34 (0.28) --
Year Ended May 31, 2004 $10.93 0.27(a) (0.50)(a) (0.23) (0.31) (0.04)
Year Ended May 31, 2003 $10.47 0.40 0.51 0.91 (0.42) (0.03)
Year Ended May 31, 2002 $10.38 0.50 0.26 0.76 (0.50) (0.17)
Year Ended May 31, 2001 $ 9.86 0.54 0.52 1.06 (0.54) --
Year Ended May 31, 2000 $10.28 0.54 (0.42) 0.12 (0.54) --
L Shares
Period Ended March 31, 2005* $10.35 0.21 0.08 0.29 (0.23) --
Year Ended May 31, 2004 $10.93 0.22(a) (0.50)(a) (0.28) (0.26) (0.04)
Year Ended May 31, 2003 $10.48 0.34 0.50 0.84 (0.36) (0.03)
Year Ended May 31, 2002 $10.38 0.45 0.27 0.72 (0.45) (0.17)
Year Ended May 31, 2001 $ 9.86 0.49 0.52 1.01 (0.49) --
Year Ended May 31, 2000 $10.28 0.49 (0.42) 0.07 (0.49) --
VIRGINIA INTERMEDIATE MUNICIPAL BOND FUND
T Shares
Period Ended March 31, 2005* $10.15 0.28 0.05 0.33 (0.28) (0.09)
Year Ended May 31, 2004 $10.68 0.34(a) (0.44)(a) (0.10) (0.34) (0.09)
Year Ended May 31, 2003 $10.29 0.36 0.49 0.85 (0.36) (0.10)
Year Ended May 31, 2002 $10.14 0.40 0.15 0.55 (0.40) --
Year Ended May 31, 2001 $ 9.58 0.42 0.56 0.98 (0.42) --
Year Ended May 31, 2000 $10.20 0.43 (0.57) (0.14) (0.43) (0.05)
A Shares
Period Ended March 31, 2005* $10.15 0.27 0.05 0.32 (0.27) (0.09)
Year Ended May 31, 2004 $10.68 0.33(a) (0.44)(a) (0.11) (0.33) (0.09)
Year Ended May 31, 2003 $10.29 0.36 0.49 0.85 (0.36) (0.10)
Year Ended May 31, 2002 $10.14 0.39 0.16 0.55 (0.40) --
Year Ended May 31, 2001 $ 9.59 0.42 0.55 0.97 (0.42) --
Year Ended May 31, 2000 $10.20 0.42 (0.56) (0.14) (0.42) (0.05)
<Caption>
Total
Dividends and
Distributions
-------------
U.S. GOVERNMENT SECURITIES FUND
T Shares
Period Ended March 31, 2005* (0.31)
Year Ended May 31, 2004 (0.39)
Year Ended May 31, 2003 (0.49)
Year Ended May 31, 2002 (0.71)
Year Ended May 31, 2001 (0.58)
Year Ended May 31, 2000 (0.58)
A Shares
Period Ended March 31, 2005* (0.28)
Year Ended May 31, 2004 (0.35)
Year Ended May 31, 2003 (0.45)
Year Ended May 31, 2002 (0.67)
Year Ended May 31, 2001 (0.54)
Year Ended May 31, 2000 (0.54)
L Shares
Period Ended March 31, 2005* (0.23)
Year Ended May 31, 2004 (0.30)
Year Ended May 31, 2003 (0.39)
Year Ended May 31, 2002 (0.62)
Year Ended May 31, 2001 (0.49)
Year Ended May 31, 2000 (0.49)
VIRGINIA INTERMEDIATE MUNICIPAL BO
T Shares
Period Ended March 31, 2005* (0.37)
Year Ended May 31, 2004 (0.43)
Year Ended May 31, 2003 (0.46)
Year Ended May 31, 2002 (0.40)
Year Ended May 31, 2001 (0.42)
Year Ended May 31, 2000 (0.48)
A Shares
Period Ended March 31, 2005* (0.36)
Year Ended May 31, 2004 (0.42)
Year Ended May 31, 2003 (0.46)
Year Ended May 31, 2002 (0.40)
Year Ended May 31, 2001 (0.42)
Year Ended May 31, 2000 (0.47)
</Table>
99
<Table>
<Caption>
Ratio of Expenses to
Ratio of Net Average Net Assets
Net Assets Net Assets, Ratio of Net Investment (Excluding Waivers, Portfolio
Value, End Total End of Expenses to Income to Reimbursements and Turnover
of Period Return+ Period (000) Average Net Assets++ Average Net Assets++ Expense Offset)++ Rate
- ---------- ------- ------------ -------------------- -------------------- --------------------- ---------
$10.42 3.74% $319,058 0.77% 3.41% 0.80% 64%
$10.35 (1.77)% $298,997 0.81% 2.95% 0.84% 240%
$10.93 9.25% $258,585 0.81% 4.00% 0.84% 150%
$10.47 7.90% $168,609 0.82% 5.09% 0.85% 262%
$10.38 11.41% $148,666 0.81% 5.66% 0.85% 207%
$ 9.86 1.63% $ 85,420 0.77% 5.77% 0.84% 29%
$10.41 3.32% $ 3,080 1.17% 3.17% 1.28% 64%
$10.35 (2.17)% $ 8,484 1.22% 2.54% 1.52% 240%
$10.93 8.79% $ 9,333 1.22% 3.59% 1.45% 150%
$10.47 7.47% $ 8,483 1.22% 4.70% 1.40% 262%
$10.38 10.95% $ 6,617 1.21% 5.21% 1.83% 207%
$ 9.86 1.19% $ 1,407 1.17% 5.34% 2.14% 29%
$10.41 2.83% $ 12,229 1.74% 2.50% 1.85% 64%
$10.35 (2.67)% $ 18,993 1.73% 2.04% 1.97% 240%
$10.93 8.14% $ 39,423 1.73% 3.10% 1.93% 150%
$10.48 7.06% $ 31,922 1.73% 4.17% 1.93% 262%
$10.38 10.45% $ 21,617 1.72% 4.71% 2.04% 207%
$ 9.86 0.70% $ 7,750 1.68% 4.85% 2.28% 29%
$10.11 3.21% $176,959 0.71% 3.23% 0.71% 46%
$10.15 (1.00)% $181,558 0.75% 3.23% 0.75% 26%
$10.68 8.43% $206,432 0.75% 3.45% 0.75% 30%
$10.29 5.52% $191,406 0.75% 3.86% 0.75% 33%
$10.14 10.39% $194,849 0.73% 4.23% 0.75% 32%
$ 9.58 (1.31)% $202,209 0.76% 4.35% 0.76% 18%
$10.11 3.14% $ 7,143 0.80% 3.16% 0.90% 46%
$10.15 (1.04)% $ 10,566 0.79% 3.19% 1.04% 26%
$10.68 8.38% $ 10,484 0.79% 3.40% 1.07% 30%
$10.29 5.47% $ 7,257 0.79% 3.82% 1.11% 33%
$10.14 10.23% $ 6,197 0.76% 4.20% 1.11% 32%
$ 9.59 (1.24)% $ 6,808 0.79% 4.33% 0.94% 18%
</Table>
See notes to financial highlights and notes to financial statements.
100
FINANCIAL HIGHLIGHTS
STI CLASSIC FIXED INCOME FUNDS
Selected Data For a Share of Beneficial Interest Outstanding Throughout the
Periods Indicated.
<Table>
<Caption>
Net Realized
Net Asset and Unrealized
Value, Net Gains (Losses) Dividends From Distributions
Beginning of Investment on Investments Total From Net Investment From Realized
Period Income Options Operations Income Capital Gains
------------ ---------- -------------- ---------- -------------- -------------
VIRGINIA MUNICIPAL BOND FUND
T Shares
Period Ended March 31, 2005* $10.37 0.31 0.14 0.45 (0.31) (0.16)
Year Ended May 31, 2004 $11.07 0.37(a) (0.47)(a) (0.10) (0.37) (0.23)
Year Ended May 31, 2003 $10.48 0.39 0.62 1.01 (0.39) (0.03)
Year Ended May 31, 2002 $10.29 0.41 0.19 0.60 (0.41) --
Year Ended May 31, 2001 $ 9.64 0.45 0.65 1.10 (0.45) --
Year Ended May 31, 2000 $10.43 0.45 (0.78) (0.33) (0.45) (0.01)
A Shares
Period Ended March 31, 2005* $10.37 0.30 0.13 0.43 (0.30) (0.16)
Period Ended May 31, 2004 (i) $10.28 0.02(a) 0.09(a) 0.11 (0.02) --
L Shares
Period Ended March 31, 2005* $10.42 0.23 0.14 0.37 (0.23) (0.16)
Year Ended May 31, 2004 $11.13 0.27(a) (0.48)(a) (0.21) (0.27) (0.23)
Year Ended May 31, 2003 $10.53 0.29 0.63 0.92 (0.29) (0.03)
Year Ended May 31, 2002 $10.34 0.31 0.19 0.50 (0.31) --
Year Ended May 31, 2001 $ 9.68 0.35 0.66 1.01 (0.35) --
Year Ended May 31, 2000 $10.48 0.36 0.79 (0.43) (0.36) (0.01)
<Caption>
Total
Dividends and
Distributions
-------------
VIRGINIA MUNICIPAL BOND FUND
T Shares
Period Ended March 31, 2005* (0.47)
Year Ended May 31, 2004 (0.60)
Year Ended May 31, 2003 (0.42)
Year Ended May 31, 2002 (0.41)
Year Ended May 31, 2001 (0.45)
Year Ended May 31, 2000 (0.46)
A Shares
Period Ended March 31, 2005* (0.46)
Period Ended May 31, 2004 (i) (0.02)
L Shares
Period Ended March 31, 2005* (0.39)
Year Ended May 31, 2004 (0.50)
Year Ended May 31, 2003 (0.32)
Year Ended May 31, 2002 (0.31)
Year Ended May 31, 2001 (0.35)
Year Ended May 31, 2000 (0.37)
</Table>
101
<Table>
<Caption>
Ratio of Expenses to
Ratio of Net Average Net Assets
Net Assets Net Assets, Ratio of Net Investment (Excluding Waivers, Portfolio
Value, End Total End of Expenses to Income to Reimbursements and Turnover
of Period Return+ Period (000) Average Net Assets++ Average Net Assets++ Expense Offset)++ Rate
---------- ------- ------------ -------------------- -------------------- --------------------- ---------
$10.35 4.41% $48,027 0.72% 3.59% 0.72% 39%
$10.37 (0.90)% $43,491 0.77% 3.47% 0.77% 33%
$11.07 9.86% $48,102 0.77% 3.67% 0.77% 18%
$10.48 5.90% $56,586 0.77% 3.90% 0.77% 38%
$10.29 11.51% $56,573 0.77% 4.40% 0.78% 60%
$ 9.64 (3.18)% $48,980 0.74% 4.53% 0.79% 19%
$10.34 4.19% $ 179 0.88% 3.50% 2.84% 39%
$10.37 1.07% $ 129 0.93% 3.95% 71.10%+++ 33%
$10.40 3.54% $ 6,534 1.70% 2.59% 1.75% 39%
$10.42 (1.90)% $ 9,723 1.70% 2.54% 1.86% 33%
$11.13 8.89% $16,956 1.70% 2.71% 1.85% 18%
$10.53 4.93% $13,428 1.70% 2.97% 1.88% 38%
$10.34 10.58% $ 7,983 1.69% 3.47% 2.00% 60%
$ 9.68 (4.13)% $ 5,367 1.65% 3.61% 2.08% 19%
</Table>
See notes to financial highlights and notes to financial statements.
102
NOTES TO FINANCIAL HIGHLIGHTS
+ Total return excludes sales charge. Not annualized for periods less than one
year.
++ Annualized for periods less than one year.
+++ Ratio reflects the impact of the initial low level of average net assets
associated with commencement of operations.
(a) Per share data was calculated using the average shares method.
(b) Commenced operations on October 3, 2001.
(c) Commenced operations on October 27, 2003.
(d) For the two month period ended May 31, 2000.
(e) Commenced operations on January 8, 2004.
(f) Commenced operations on March 21, 2005.
(g) Commenced operations on November 30, 2001.
(h) Commenced operations on October 8, 2003.
(i) Commenced operations on May 11, 2004.
* Effective June 1, 2004, the Funds adopted a change in the amortization and
accretion methodology on fixed income securities. (See Note 3.) The cumulative
effect of this change in methodology was immaterial to all Funds except for
the Funds noted below:
<Table>
<Caption>
Change to Ratio of Net
Change to Net Investment Income
Change to Net Realized and to Average Net Assets
Investment Unrealized Gains ------------------------------
Income Per Share (Losses) Per Share T Shares A Shares L Shares
---------------- ------------------ -------- -------- --------
Georgia Tax-Exempt Bond Fund............................. $ 0.01 $(0.01) 0.16% 0.14% 0.14%
Investment Grade Bond Fund............................... 0.01 (0.01) 0.18% 0.14% 0.14%
Investment Grade Tax-Exempt Bond Fund.................... (0.01) 0.01 (0.08)% (0.07)% (0.06)%
Limited-Term Federal Mortgage Securities Fund............ 0.04 (0.04) 0.47% 0.42% 0.36%
Maryland Municipal Bond Fund............................. (0.01) 0.01 (0.07)% (0.06)%
North Carolina Tax-Exempt Bond Fund...................... (0.02) 0.02 (0.20)% -- --
Short-Term Bond Fund..................................... 0.01 (0.01) 0.08% 0.07% 0.06%
Strategic Income Fund.................................... 0.01 (0.01) 0.22% 0.14% 0.13%
U.S. Government Securities Fund.......................... 0.02 (0.02) 0.23% 0.11% 0.17%
</Table>
103
NOTES TO FINANCIAL STATEMENTS
STI CLASSIC FIXED INCOME FUNDS March 31, 2005
1. Organization
The STI Classic Funds (the "Trust") was organized as a Massachusetts business
trust under a Declaration of Trust dated January 15, 1992. The Trust is
registered under the Investment Company Act of 1940, as amended, as an open-end
management investment company offering 49 funds as of March 31, 2005. The
financial statements presented herein are those of the Florida Tax-Exempt Bond
Fund, Georgia Tax-Exempt Bond Fund, High Income Fund, Investment Grade Bond
Fund, Investment Grade Tax-Exempt Bond Fund, Limited-Term Federal Mortgage
Securities Fund, Maryland Municipal Bond Fund, North Carolina Tax-Exempt Bond
Fund, Short-Term Bond Fund, Short-Term U.S. Treasury Securities Fund, Strategic
Income Fund, U.S. Government Securities Fund, Virginia Intermediate Municipal
Bond Fund and Virginia Municipal Bond Fund (each a "Fund" and collectively the
"Funds"). The Funds may offer the following share classes: T Shares, A Shares
and L Shares. The Trust is authorized to issue an unlimited number of shares
without par value. Shareholders have no preemptive rights. The financial
statements of the remaining funds are presented separately. The assets of each
Fund are segregated, and a shareholder's interest is limited to the Fund in
which shares are held. The Funds' prospectus provides a description of the
Funds' investment objectives, policies and strategies.
At a regular meeting of the Board of Trustees (the "Board") on February 15,
2005, the Board voted to change the fiscal and tax year ends of the Funds from
May 31 to March 31.
Under the Trust's organizational documents, its officers and trustees are
indemnified against certain liabilities arising out of the performance of their
duties to the Trust. In addition, in the normal course of business, the Trust
enters into contracts with their vendors and others that provide for general
indemnifications. The Trust's maximum exposure under these arrangements is
unknown as this would involve future claims that may be made against the Trust.
However, based on experience, the Trust expects that risk of loss to be remote.
2. Reorganization
The Trust entered into an agreement and plan of reorganization with the CCMI
Funds pursuant to which all of the assets, subject to stated liabilities, of
each portfolio of the CCMI Funds were transferred to a corresponding series of
the Trust in exchange for a corresponding Class of shares of that series. The
reorganization, which qualified as a tax-free exchange for Federal income tax
purposes, was effective on March 21, 2005, following approval by shareholders of
the CCMI Funds at a special shareholder meeting on March 18, 2005. The following
is a summary of shares outstanding, net assets and net asset value per share
issued immediately before and after the reorganization:
<Table>
<Caption>
Before Reorganization After Reorganization
--------------------------------- --------------------
Investment Grade Investment Grade
CCMI Bond Fund Bond Fund Bond Fund
-------------- ---------------- --------------------
Shares...................................................... 9,529,863 53,108,105 62,246,522
Net Assets.................................................. $96,136,152 $558,612,570 $654,748,722
Net Asset Value:
T Shares(a)............................................... $ 10.52 $ 10.52
A Shares.................................................. $ 10.09
Net unrealized appreciation/(depreciation)................ (566,749) 1,137,114 570,365
</Table>
(a) Effective March 21, 2005 the CCMI Bond Fund Class A Shares merged into the
Investment Grade Bond Fund Class T Shares.
104
NOTES TO FINANCIAL STATEMENTS (continued)
STI CLASSIC FIXED INCOME FUNDS March 31, 2005
<Table>
<Caption>
Before Reorganization After Reorganization
--------------------------------- --------------------
CCMI Tax-Exempt North Carolina
North Carolina Tax-Exempt Bond North Carolina Tax-
Bond Fund Fund Exempt Bond Fund(a)
--------------- --------------- --------------------
Shares...................................................... 4,130,609 -- 4,130,609
Net Assets.................................................. $41,187,382 $-- $41,187,382
Net Asset Value:
T Shares(b)............................................... $-- $ 9.97
A Shares.................................................. $ 9.97
Net unrealized depreciation............................... (23,376) -- (23,376)
</Table>
(a) The North Carolina Tax-Exempt Bond Fund retained the financial history of
the CCMI Tax-Exempt North Carolina Bond Fund.
(b) T Shares were issued in exchange for A Shares in conjunction with the
reorganization.
3. Significant Accounting Policies
The following is a summary of significant accounting policies followed by the
Trust in the preparation of its financial statements. These policies are in
conformity with accounting principles generally accepted in the United States of
America ("GAAP"). The preparation of financial statements in accordance with
GAAP requires management to make estimates and assumptions that affect the
reported amounts of assets and liabilities and disclosure of contingent assets
and liabilities at the date of the financial statements and the reported amounts
of income and expense during the reporting period. The actual results could
differ from these estimates.
Security Valuation -- Securities listed on a securities exchange, market or
automated quotation system for which quotations are readily available
(except for securities traded on NASDAQ), including securities traded over
the counter, are valued at the last quoted sale price on the primary
exchange or market (foreign or domestic) on which they are traded on
valuation date (or at approximately 4:00 pm Eastern Time if a security's
primary exchange is normally open at that time), or, if there is no such
reported sale on the valuation date, at the most recent quoted bid price.
For securities traded on NASDAQ, the NASDAQ Official Closing Price will be
used. If available, debt securities are priced based upon valuations
provided by independent, third-party pricing agents. Such values generally
reflect the last reported sales price if the security is actively traded.
The third-party pricing agents may also value debt securities at an
evaluated bid price by employing methodologies that utilize actual market
transactions, broker-supplied valuations, or other methodologies designed
to identify the market value for such securities. Debt obligations with
remaining maturities of sixty days or less may be valued at their amortized
cost, which approximates market value. The prices for foreign securities
are reported in local currency and converted to U.S. dollars at the
exchange rate of such currencies against the U.S. dollar, as of the close
of regular trading on the New York Stock Exchange (usually 4:00 pm Eastern
Time), as provided by an independent pricing service approved by the Funds'
Board of Trustees (the "Board"). If a security price cannot be obtained
from an independent, third-party pricing agent, the Funds' administrator
shall seek to obtain a bid price from at least one independent broker.
Securities for which market prices are not "readily available" are valued
in accordance with Fair Value Procedures established by the Board. The
Funds' Fair Value Procedures will be performed and monitored by a Fair
Value Committee (the "Committee") designated by the Board. Some of the more
common reasons that may necessitate that a security be valued using Fair
Value Procedures include, but are not limited to: the security's trading
has been halted or suspended; the security has been de-listed from a
national exchange; the security's primary trading market is temporarily
closed at a time when under normal conditions it would be open; or the
security's primary pricing source is not able or willing to provide a
price. When a security is valued in accordance with the Fair Value
Procedures, the Committee will determine the value after taking into
consideration relevant information reasonably available to the Committee.
Security Transactions and Investment Income -- Security transactions are
accounted for no later
105
than one business day after trade date. However, for financial reporting
purposes, securities transactions are reported on trade date. Interest
income is recognized on an accrual basis. Costs used in determining net
realized gains and losses on the sales of investment securities are those
of the specific securities sold, adjusted for the accretion or amortization
of purchase discounts or premiums during the respective holding period.
Effective June 1, 2004, the following Funds changed their amortization and
accretion methodology on premiums and discounts on fixed income securities in
order to conform more closely to Internal Revenue Code requirements. The
cumulative effect of the accounting change had no impact on total net assets of
each Fund, but resulted in the following reclasses (in thousands):
<Table>
<Caption>
Change in Change in Unrealized
Interest Income Appreciation/(Depreciation)
--------------- ---------------------------
Florida Tax-Exempt Bond Fund................................ (10) 10
Georgia Tax-Exempt Bond Fund................................ 138 (138)
High Income Fund............................................ 69 (69)
Investment Grade Bond Fund.................................. 879 (879)
Investment Grade Tax-Exempt Bond Fund....................... (162) 162
Limited-Term Federal Mortgage Securities Fund............... 1,886 (1,886)
Maryland Municipal Bond Fund................................ (23) 23
North Carolina Tax-Exempt Bond Fund......................... (67) 67
Short-Term Bond Fund........................................ 183 (183)
Short-Term U.S. Treasury Securities Fund.................... 1 (1)
Strategic Income Fund....................................... 345 (345)
U.S. Government Securities Fund............................. 609 (609)
Virginia Intermediate Municipal Bond Fund................... (9) 9
Virginia Municipal Bond Fund................................ 2 (2)
</Table>
The statement of changes in net assets and financial highlights for prior
periods have not been restated to reflect this change in accounting methodology.
Repurchase Agreements -- The Funds may purchase instruments from financial
institutions, such as banks and broker-dealers, subject to the seller's
agreement to repurchase them at an agreed upon time and price ("repurchase
agreement"). A third party custodian bank takes possession of the
underlying securities ("collateral") of a repurchase agreement, the value
of which exceeds the principal amount of the repurchase transaction,
including accrued interest. In the event of default on the obligation to
repurchase, each Fund has the right to liquidate the collateral and apply
the proceeds in satisfaction of the obligation. In the event of default or
bankruptcy by the counterparty to the agreement, realization and/or
retention of the collateral or proceeds may be subject to legal
proceedings.
Options -- Each Fund may purchase and write put and call options on
securities or securities indices (traded on U.S. exchanges or over-the-
counter markets) and enter into related closing transactions. A Fund must
cover all options it writes. For example, when a Fund writes an option on a
security, index or foreign currency, it will segregate or earmark liquid
assets with the respective Fund's custodian in an amount at least equal to
the market value of the option and will maintain such coverage while the
option is open. The market value of an option generally reflects the market
price of an underlying security. Other principal factors affecting market
value include supply and demand, interest rates, the pricing volatility of
the underlying security and the time remaining until the expiration date. A
Fund purchasing put and call options pays a premium therefor. If price
movements in the underlying securities are such that exercise of the
options would not be profitable for the Fund, loss of the premium paid may
be offset by an increase in the value of the Fund's securities or by a
decrease in the cost of acquisition of securities by the Fund. When a Fund
writes an option, if the underly-
106
NOTES TO FINANCIAL STATEMENTS (continued)
STI CLASSIC FIXED INCOME FUNDS March 31, 2005
ing securities do not increase or decrease to a price level that would make
the exercise of the option profitable to the holder thereof, the option
generally will expire without being exercised and the Fund will realize as
profit the premium received for such option. When a call option written by
a Fund is exercised, the Fund will be required to sell the underlying
securities to the option holder at the strike price, and will not
participate in any increase in the price of such securities above the
strike price. When a put option written by the Fund is exercised, the Fund
will be required to purchase the underlying securities at a price in excess
of the market value of such securities. The Short-Term U.S. Treasury
Securities Fund had the following transactions in written covered call
options during the period ended March 31, 2005:
<Table>
<Caption>
Number of
Contracts Premiums
--------- --------
Balance at June 1, 2004.......... -- $ --
Options written.................. 5,000,000 14,453
--------- -------
Balance at March 31, 2005........ 5,000,000 $14,453
========= =======
</Table>
The following is a summary of options outstanding as of March 31, 2005:
<Table>
<Caption>
Short-Term U.S. Treasury Shares Subject Market
Securities Fund to Contract Value
------------------------ -------------- -------
U.S. Treasury Note, $98.453125,
06/13/05...................... 5,000,000 $12,604
</Table>
Redemption Fees -- The Funds may charge a redemption fee of up to 2% of
redemption proceeds, which will automatically be paid to the Fund. There
were no redemption fees for the period ended March 31, 2005.
Securities Purchased on a When-Issued Basis -- Delivery and payment for
securities that have been purchased by a Fund on a forward commitment or
when-issued basis can take place up to a month or more after the
transaction date. During this period, such securities are subject to market
fluctuations. The purchase of securities on a when-issued or forward
commitment basis may increase the volatility of a Fund's net asset value if
the Fund makes such investments while remaining substantially fully
invested.
Foreign Currency Translation -- The books and records of the Funds are
maintained in U.S. dollars. Foreign currency amounts are translated into
U.S. dollars on the following bases: (i) market value of investment
securities, other assets and liabilities at the current rate of exchange;
and (ii) purchases and sales of investment securities, income and expenses
at the relevant rates of exchange prevailing on the respective dates of
such transactions.
The Funds do not isolate the portion of operations resulting from changes
in foreign exchange rates on investments from fluctuations arising from
changes in market prices of securities held. Such fluctuations are included
with the net realized and unrealized gain or loss from investments and
foreign currencies.
Certain prior year amounts have been reclassified to conform to current
year presentation.
Forward Foreign Currency Contracts -- The Strategic Income Fund may enter
into forward foreign currency contracts as hedges against either specific
transactions, fund positions or anticipated fund positions. All commitments
are "marked-to-market" daily at the applicable foreign exchange rate, and
any resulting unrealized gains or losses are recorded currently. The Fund
realizes gains and losses at the time forward contracts are extinguished.
Unrealized gains or losses on outstanding positions in forward foreign
currency contracts held at the close of the year are recognized as ordinary
income or loss for Federal income tax purposes. As of March 31, 2005, there
were no open forward foreign currency contracts.
TBA Purchase Commitments -- The Funds may enter into "TBA" (To Be
Announced) purchase commitments to purchase securities for a fixed price at
a future date beyond customary settlement time. TBA purchase commitments
may be considered securities in themselves, and involve a risk of loss if
the value of the security to be purchased declines prior to settlement
date. Unsettled TBA purchase commitments are valued at the current market
value of the underlying securities, generally according to the procedures
described under "Security Valuation."
Mortgage Dollar Rolls -- The Funds may enter into mortgage dollar rolls
(principally using TBA's) in which a Fund sells mortgage securities for
delivery in the current month and
107
simultaneously contracts to repurchase substantially similar securities at
an agreed-upon price on a fixed date. The Funds account for such dollar
rolls under the purchases and sales method and receive compensation as
consideration for entering into the commitment to repurchase. The Funds
must maintain liquid securities having a value not less than the repurchase
price (including accrued interest) for such dollar rolls. The market value
of the securities that the Funds are required to purchase may decline below
the agreed upon repurchase price of those securities.
The counterparty receives all principal and interest payments, including
pre-payments, made in respect of a security subject to such a contract
while it is with the holder. Mortgage dollar rolls may be renewed with a
new purchase and repurchase price and a cash settlement made on settlement
date without physical delivery of the securities subject to the contract.
The Funds engage in dollar rolls for the purpose of enhancing its yield,
principally by earning a negotiated fee. As of March 31, 2005, there were
no open mortgage dollar rolls.
Expenses -- Expenses that are directly related to a specific Fund are
charged to that Fund. Class specific expenses, such as distribution fees,
are borne by that class. Other operating expenses of the Trust are
pro-rated to the Funds on the basis of relative net assets or another
appropriate basis.
Classes -- Income, non-class specific expenses and realized/unrealized
gains and losses are allocated to the respective classes on the basis of
the relative daily net assets.
Dividends and Distributions to Shareholders -- Dividends and distributions
to shareholders are recorded on the ex-dividend date. Dividends from net
investment income for each of the Funds are declared daily and paid
monthly. Any net realized capital gains on sales of securities are
distributed to shareholders at least annually. However, to the extent that
net realized capital gains can be offset by capital loss carryovers, such
gains will not be distributed.
The amounts of dividends from net investment income and of distributions
from net realized gains are determined in accordance with federal income
tax regulations, which may differ from GAAP. These "book/tax" differences
are either considered temporary or permanent in nature. To the extent these
differences are permanent in nature (i.e. foreign currency transactions or
paydown reclasses), such amounts are reclassified within the composition of
net assets based on their federal tax-basis treatment; temporary
differences do not require reclassification.
Compensating Balances -- If a Fund has a cash overdraft in excess of
$100,000 it is required to leave 110% in compensating balance with SunTrust
Bank (the "Custodian"), a wholly-owned subsidiary of SunTrust Banks, Inc.,
on the following day. If a Fund has a positive cash balance in excess of
$100,000 it is allowed to overdraw 90% of the balance with the Custodian on
the following business day. This does not apply to the Strategic Income
Fund.
4. Agreements and Other Transactions with Affiliates
Investment Advisory Agreement -- The Trust and Trusco Capital Management,
Inc. (the "Investment Adviser"), a wholly-owned subsidiary of SunTrust
Banks, Inc., have entered into advisory agreements.
Under terms of the agreements, the Funds are charged the following annual
fees which are computed daily and paid monthly based upon average daily net
assets:
<Table>
<Caption>
Maximum
Annual Net Fees Net Fees
Advisory Paid Paid
Fee 2005 2004
-------- -------- --------
Florida Tax-Exempt Bond
Fund................... 0.65% 0.61% 0.61%
Georgia Tax-Exempt Bond
Fund................... 0.65 0.61 0.61
High Income Fund......... 0.80 0.65 0.65
Investment Grade Bond
Fund................... 0.74 0.72 0.72
Investment Grade Tax-
Exempt Bond Fund....... 0.74 0.71 0.71
Limited-Term Federal
Mortgage Securities
Fund................... 0.65 0.60 0.60
Maryland Municipal Bond
Fund................... 0.65 0.57 0.57
North Carolina Tax-
Exempt Bond Fund....... 0.65 0.35 N/A
Short-Term Bond Fund..... 0.65 0.60 0.60
</Table>
108
NOTES TO FINANCIAL STATEMENTS (continued)
STI CLASSIC FIXED INCOME FUNDS March 31, 2005
<Table>
<Caption>
Maximum
Annual Net Fees Net Fees
Advisory Paid Paid
Fee 2005 2004
-------- -------- --------
Short-Term U.S. Treasury
Securities Fund........ 0.65% 0.59% 0.59%
Strategic Income Fund.... 0.85 0.75 0.75
U.S. Government
Securities Fund........ 0.74 0.71 0.71
Virginia Intermediate
Municipal Bond Fund.... 0.65 0.65 0.65
Virginia Municipal Bond
Fund................... 0.65 0.65 0.65
</Table>
The Investment Adviser has voluntarily agreed to waive all or a portion of
its fees. Fee waivers are voluntary and may be terminated at any time.
Administration, Fund Accounting and Transfer Agency Agreement -- The Trust
and BISYS Fund Services Ohio, Inc. (the "Administrator") are parties to a
Master Services Agreement under which the Administrator provides
administrative, fund accounting and transfer agent services for an annual
fee (expressed as a percentage of the combined average daily net assets of
the Trust and STI Classic Variable Trust) of: 0.0275% up to $25 billion,
0.0225% on the next $5 billion and 0.0175% for over $30 billion, plus an
additional class fee of $2,500 per class annum, applicable to each
additional class of shares over 145 classes of shares.
Prior to July 26, 2004, SEI Investments Global Funds Services ("SEI")
served as the Administrator and provided administrative services for an
annual fee (expressed as a percentage of the combined average daily net
assets of the Trust, except the North Carolina Tax-Exempt Bond Fund, and
STI Classic Variable Trust) of: 0.12% up to $1 billion, 0.09% on the next
$4 billion, 0.07% on the next $3 billion, 0.065% on the next $2 billion and
0.06% for over $10 billion. For the period of June 1, 2004 to July 23,
2004, SEI received fees totaling $2,333,093 from the Trust for its
services.
Prior to March 21, 2005, Unified Fund Services, Inc. provided
administration, fund accounting and transfer agent services to the
predecessor fund of the North Carolina Tax-Exempt Bond Fund.
Per the executed Master Services Agreement, BISYS Fund Services Ohio, Inc.
has agreed to pay a total of $325,000 per annum towards the insurance
premiums payable annually by the Trust and the STI Classic Variable Trust.
$300,000 will be paid towards the premium for the Directors and Officers
Liability/Errors and Omissions Insurance Policy, and $25,000 will be paid
towards the premium for the Fidelity Bond Policy.
Distribution Agreement -- The Trust and BISYS Fund Services Limited
Partnership (the "Distributor") are parties to a Distribution Agreement
effective July 26, 2004. Effective March 21, 2005, the Distributor began
serving as the distributor of the North Carolina Tax-Exempt Bond Fund. The
Distributor will receive no fees for its distribution services under the
agreement for the T Shares of any Fund. With respect to the L Shares and A
Shares, the Distributor receives amounts, pursuant to a Distribution Plan
and (in the case of
109
L Shares) a Distribution and Service Plan, based upon average daily net
assets of each respective class which are computed daily and paid monthly,
as outlined in the tables below.
<Table>
<Caption>
Maximum Maximum
L Share Net Fees Net Fees A Share Net Fees Net Fees
Distribution and Paid Paid Distribution Paid Paid
Service Fee 2005 2004 Fee 2005 2004
---------------- -------- -------- ------------ -------- --------
Florida Tax-Exempt Bond Fund.................. 1.00% 0.73% 0.66% 0.18% 0.14% 0.01%
Georgia Tax-Exempt Bond Fund.................. 1.00 0.73 0.63 0.18 0.10 --
High Income Fund.............................. 1.00 0.67 0.57 0.30 0.10 --
Investment Grade Bond Fund.................... 1.00 0.89 0.74 0.43 0.40 0.29
Investment Grade Tax-Exempt Bond Fund......... 1.00 0.91 0.82 0.43 0.40 0.32
Limited-Term Federal Mortgage Securities
Fund........................................ 1.00 0.62 0.55 0.23 0.18 0.08
Maryland Municipal Bond Fund.................. 1.00 0.98 0.90 N/A N/A N/A
North Carolina Tax-Exempt Bond Fund........... 1.00 0.89 -- 0.15 0.15 --
Short-Term Bond Fund.......................... 1.00 0.57 0.45 0.23 0.17 --
Short-Term U.S. Treasury Securities Fund...... 1.00 0.44 0.36 0.18 0.13 0.04
Strategic Income Fund......................... 1.00 0.54 0.50 0.35 0.23 --
U.S. Government Securities Fund............... 1.00 0.92 0.79 0.38 0.30 0.12
Virginia Intermediate Municipal Bond Fund..... N/A N/A N/A 0.15 0.05 --
Virginia Municipal Bond Fund.................. 1.00 0.95 0.84 0.15 -- --
</Table>
The Distributor has voluntarily agreed to waive all or a portion of its
fees. Fee waivers are voluntary and may be terminated at any time.
Prior to July 26, 2004, SEI Investments Distribution Co. served as the
distributor of all Funds except the North Carolina Tax-Exempt Bond Fund.
SEI Investments Distribution Co. had voluntarily agreed to waive all or a
portion of its fees and to reimburse fund expenses.
Transfer Agency Agreement -- The Trust and SunTrust Securities Inc.
("STS"), a wholly-owned subsidiary of SunTrust Banks, Inc., are parties to
an agreement under which STS provides certain transfer agency account
activity processing and servicing. The transfer agency service fees are
based upon a monthly per account charge for the total shareholder accounts
at the Trust's transfer agent. These fees are presented on the Statements
of Operations as Transfer Agent Shareholder Servicing Fees.
Prior to July 26, 2004, Federated Services Company provided transfer agency
services to the Trust.
Custodian Agreements -- SunTrust Bank acts as custodian for all of the
Funds except the Strategic Income Fund, which utilizes Brown Brothers
Harriman & Co. as custodian. Custodians are paid on the basis of net assets
and transaction costs of the Funds. The custodians play no role in
determining the investment policies of the Trust or which securities are to
be purchased or sold in the Funds.
Prior to March 21, 2005, Fifth Third Bank served as the North Carolina
Tax-Exempt Bond Fund predecessor fund's custodian.
Other -- Certain officers of the Trust are also officers of the Adviser,
Administrator and/or the Distributor. Such officers (with the exception of
the Chief Compliance Officer) receive no fees by the Trust for serving as
officers of the Trust. Each of the eight trustees are compensated $43,000
($344,000 total) and the Chairman of the Board receives $50,000 in meeting
and retainer fees, plus the reimbursement for certain expenses incurred.
Effective October 5, 2004, Trusco Capital Management, Inc. began providing
an employee to serve as Chief Compliance Officer for the Trust and provide
certain related services, and will receive an annual fee for this service
of $120,000. In addition, BISYS provides an employee and staff to serve as
an assistant to the Chief Compliance Officer for the Trust, including
providing certain related services, and will receive a fee for these
services of $150,000. Both fees are allocated across the assets of the
Trust and the STI Classic Variable Trust. For the period ended March 31,
2005, the total related amounts paid by the Trust were $319,892.
110
NOTES TO FINANCIAL STATEMENTS (continued)
STI CLASSIC FIXED INCOME FUNDS March 31, 2005
The Trust has entered into an agreement with SunTrust Robinson Humphrey, a
division of SunTrust Capital markets, Inc. which is a direct non-bank
subsidiary of SunTrust Banks, Inc. to act as an agent in placing repurchase
agreements for the Trust. For the period ended March 31, 2005, the
following Funds paid SunTrust Robinson Humphrey through a reduction in the
yield earned by the Funds on those repurchase agreements (in thousands):
<Table>
<Caption>
2005 2004
Fees Fees
---- ----
Florida Tax-Exempt Bond Fund............... $1 $--
High Income Fund........................... 2 --
Investment Grade Bond Fund................. 5 2
Investment Grade Tax-Exempt Bond Fund...... 3 --
Limited-Term Federal Mortgage Securities
Fund..................................... 7 11
U.S. Government Securities Fund............ 6 6
</Table>
5. Investment Transactions
The cost of purchases and the proceeds from sales and maturities of securities,
excluding short-term investments and U.S. Government securities, for the period
ended March 31, 2005, were as follows (in thousands):
<Table>
<Caption>
Sales and
Purchases Maturities
--------- ----------
Florida Tax-Exempt Bond Fund...... $107,704 $135,824
Georgia Tax-Exempt Bond Fund...... 55,157 60,937
High Income Fund.................. 221,706 269,019
Investment Grade Bond Fund........ 766,080 929,570
Investment Grade Tax-Exempt Bond
Fund............................ 488,843 435,219
Maryland Municipal Bond Fund...... 13,436 16,928
North Carolina Tax-Exempt Bond
Fund............................ 20,640 13,657
Short-Term Bond Fund.............. 79,549 100,695
Strategic Income Fund............. 374,929 238,691
U.S. Government Securities Fund... -- 20,440
Virginia Intermediate Municipal
Bond Fund....................... 86,693 99,431
Virginia Municipal Bond Fund...... 23,998 20,652
</Table>
The cost of purchases and proceeds from sales and maturities of long-term U.S.
Government securities for the period ended March 31, 2005 were as follows (in
thousands):
<Table>
<Caption>
Sales and
Purchases Maturities
---------- ----------
Investment Grade Bond Fund..... $1,017,682 $403,025
Limited-Term Federal Mortgage
Securities Fund.............. 192,309 262,573
Short-Term Bond Fund........... 105,372 104,338
Short-Term U.S. Treasury
Securities Fund.............. 103,674 159,217
Strategic Income Fund.......... 274,532 404,034
U.S. Government Securities
Fund......................... 192,178 193,254
</Table>
111
(This page intentionally left blank.)
112
6. Capital Share Transactions
Capital share transactions for the Funds were as follows (in thousands):
<Table>
<Caption>
Florida Tax-Exempt Georgia Tax-Exempt
Bond Fund Bond Fund
--------------------------------- ---------------------------------
06/01/04- 06/01/03- 06/01/02- 06/01/04- 06/01/03- 06/01/02-
03/31/05 05/31/04 05/31/03 03/31/05 05/31/04 05/31/03
--------- --------- --------- --------- --------- ---------
Capital Transactions:
T Shares(1):
Proceeds from Shares Issued............................. $ 30,434 $ 83,482 $40,464 $18,386 $19,156 $23,167
Proceeds from Shares Issued in Acquisition.............. -- -- -- -- -- --
Dividends Reinvested.................................... 1,312 2,132 934 917 699 576
Cost of Shares Redeemed................................. (38,920) (57,242) (23,528) (20,690) (14,624) (21,636)
-------- -------- ------- ------- ------- -------
Change in Net Assets from T Shares Transactions......... $ (7,174) $ 28,372 $17,870 $(1,387) $ 5,231 $ 2,107
-------- -------- ------- ------- ------- -------
A Shares(2):
Proceeds from Shares Issued............................. $ 2,867 $ 3,093 $ 9,924 $ 711 $ 1,280 $ 435
Dividends Reinvested.................................... 153 166 149 83 56 45
Cost of Shares Redeemed................................. (2,785) (5,029) (5,146) (861) (1,059) (842)
-------- -------- ------- ------- ------- -------
Change in Net Assets from A Shares Transactions......... $ 235 $ (1,770) $ 4,927 $ (67) $ 277 $ (362)
-------- -------- ------- ------- ------- -------
L Shares(3):
Proceeds from Shares Issued............................. $ 353 $ 6,043 $25,216 $ 49 $ 2,653 $ 5,069
Dividends Reinvested.................................... 349 865 854 411 444 359
Cost of Shares Redeemed................................. (8,356) (24,958) (9,812) (3,150) (5,341) (3,962)
-------- -------- ------- ------- ------- -------
Change in Net Assets from L Shares Transactions......... $ (7,654) $(18,050) $16,258 $(2,690) $(2,244) $ 1,466
-------- -------- ------- ------- ------- -------
Change in Net Assets from Capital Transactions.......... $(14,593) $ 8,552 $39,055 $(4,144) $ 3,264 $ 3,211
======== ======== ======= ======= ======= =======
Share Transactions:
T Shares(1):
Issued.................................................. 2,725 7,381 3,571 1,763 1,818 2,200
Issued in Acquisition................................... -- -- -- -- -- --
Reinvested.............................................. 119 188 83 89 66 54
Redeemed................................................ (3,495) (5,085) (2,081) (1,981) (1,384) (2,049)
-------- -------- ------- ------- ------- -------
Change in T Shares Transactions......................... (651) 2,484 1,573 (129) 500 205
-------- -------- ------- ------- ------- -------
A Shares(2):
Issued.................................................. 258 272 875 68 121 42
Reinvested.............................................. 14 15 13 8 5 4
Redeemed................................................ (250) (448) (455) (83) (100) (80)
-------- -------- ------- ------- ------- -------
Change in A Shares Transactions......................... 22 (161) 433 (7) 26 (34)
-------- -------- ------- ------- ------- -------
L Shares(3):
Issued.................................................. 34 530 2,231 7 249 478
Reinvested.............................................. 31 76 75 40 42 34
Redeemed................................................ (756) (2,221) (866) (306) (511) (375)
-------- -------- ------- ------- ------- -------
Change in L Shares Transactions......................... (691) (1,615) 1,440 (259) (220) 137
-------- -------- ------- ------- ------- -------
Change in Share Transactions............................ (1,320) 708 3,446 (395) 306 308
======== ======== ======= ======= ======= =======
</Table>
113
<Table>
<Caption>
High Income Investment Grade Investment Grade
Fund Bond Fund Tax-Exempt Bond Fund
--------------------------------- --------------------------------- ---------------------------------
06/01/04- 06/01/03- 06/01/02- 06/01/04- 06/01/03- 06/01/02- 06/01/04- 06/01/03- 06/01/02-
03/31/05 05/31/04 05/31/03 03/31/05 05/31/04 05/31/03 03/31/05 05/31/04 05/31/03
--------- --------- --------- --------- --------- --------- --------- --------- ---------
$ 25,619 $ 42,398 $ 78,322 $ 78,297 $ 131,151 $ 190,331 $ 92,986 $ 83,827 $ 65,057
-- -- -- 96,136 -- -- -- -- --
2,643 3,161 2,263 6,490 10,827 15,210 2,189 2,327 3,476
(48,374) (77,402) (10,708) (167,099) (342,709) (326,113) (40,368) (56,635) (38,360)
-------- -------- -------- --------- --------- --------- -------- -------- --------
$(20,112) $(31,843) $ 69,877 $ 13,824 $(200,731) $(120,572) $ 54,807 $ 29,519 $ 30,173
-------- -------- -------- --------- --------- --------- -------- -------- --------
$ 938 $ 2,653 $ -- $ 2,965 $ 11,284 $ 23,705 $ 1,595 $ 3,424 $ 4,022
77 32 -- 613 943 968 475 654 1,017
(1,804) (1,122) -- (11,805) (13,838) (12,533) (3,755) (5,748) (4,495)
-------- -------- -------- --------- --------- --------- -------- -------- --------
$ (789) $ 1,563 $ -- $ (8,227) $ (1,611) $ 12,140 $ (1,685) $ (1,670) $ 544
-------- -------- -------- --------- --------- --------- -------- -------- --------
$ 3,557 $ 47,482 $ 32,945 $ 724 $ 6,557 $ 21,399 $ 284 $ 4,230 $ 13,844
3,914 4,236 2,357 370 739 1,095 435 871 1,334
(30,848) (42,475) (17,558) (7,967) (18,778) (23,304) (8,192) (13,377) (8,216)
-------- -------- -------- --------- --------- --------- -------- -------- --------
$(23,377) $ 9,243 $ 17,744 $ (6,873) $ (11,482) $ (810) $ (7,473) $ (8,276) $ 6,962
-------- -------- -------- --------- --------- --------- -------- -------- --------
$(44,278) $(21,037) $ 87,621 $ (1,276) $(213,824) $(109,242) $ 45,649 $ 19,573 $ 37,679
======== ======== ======== ========= ========= ========= ======== ======== ========
3,464 5,657 11,360 7,408 12,373 18,197 8,015 7,142 5,507
-- -- -- 9,140 -- -- -- -- --
351 424 336 617 1,025 1,450 189 200 300
(6,524) (10,511) (1,571) (15,871) (32,348) (31,144) (3,471) (4,843) (3,260)
-------- -------- -------- --------- --------- --------- -------- -------- --------
(2,709) (4,430) 10,125 1,294 (18,950) (11,497) 4,733 2,499 2,547
-------- -------- -------- --------- --------- --------- -------- -------- --------
124 350 -- 281 1,067 2,253 136 290 341
10 4 -- 58 89 92 41 56 87
(238) (150) -- (1,117) (1,310) (1,192) (322) (489) (383)
-------- -------- -------- --------- --------- --------- -------- -------- --------
(104) 204 -- (778) (154) 1,153 (145) (143) 45
-------- -------- -------- --------- --------- --------- -------- -------- --------
515 6,402 4,824 69 615 2,045 24 357 1,177
519 567 353 35 70 104 38 75 115
(4,127) (5,714) (2,641) (758) (1,778) (2,229) (706) (1,145) (696)
-------- -------- -------- --------- --------- --------- -------- -------- --------
(3,093) 1,255 2,536 (654) (1,093) (80) (644) (713) 596
-------- -------- -------- --------- --------- --------- -------- -------- --------
(5,906) (2,971) 12,661 (138) (20,197) (10,424) 3,944 1,643 3,188
======== ======== ======== ========= ========= ========= ======== ======== ========
</Table>
114
<Table>
<Caption>
Limited-Term Federal Mortgage Maryland Municipal North Carolina Tax-
Securities Fund Bond Fund Exempt Bond Fund
--------------------------------- --------------------------------- ----------------------
06/01/04- 06/01/03- 06/01/02- 06/01/04- 06/01/03- 06/01/02- 06/01/04- 01/08/04*-
03/31/05 05/31/04 05/31/03 03/31/05 05/31/04 05/31/03 03/31/05 05/31/04
--------- --------- --------- --------- --------- --------- --------- ----------
Capital Transactions:
T Shares(1):
Proceeds from Shares Issued.... $ 109,729 $ 270,058 $226,297 $ 6,296 $ 8,075 $ 19,146 $11,202 $35,213
Dividends Reinvested........... 4,321 4,093 3,910 277 489 301 124 --
Cost of Shares Redeemed........ (138,526) (144,748) (80,208) (5,216) (7,414) (24,605) (3,714) (1,592)
--------- --------- -------- ------- -------- -------- ------- -------
Change in Net Assets from T
Shares Transactions.......... $ (24,476) $ 129,403 $149,999 $ 1,357 $ 1,150 $ (5,158) $ 7,612 $33,621
--------- --------- -------- ------- -------- -------- ------- -------
A Shares(2):
Proceeds from Shares Issued.... $ 3,395 $ 8,182 $ 18,913 -- --
Dividends Reinvested........... 181 279 228 -- --
Cost of Shares Redeemed........ (7,196) (12,123) (7,223) -- --
--------- --------- -------- ------- -------- -------- ------- -------
Change in Net Assets from A
Shares Transactions.......... $ (3,620) $ (3,662) $ 11,918 -- --
--------- --------- -------- ------- -------- -------- ------- -------
L Shares(3):
Proceeds from Shares Issued.... $ 525 $ 23,896 $160,430 $ 1,138 $ 4,056 $ 9,395 -- --
Dividends Reinvested........... 1,065 2,217 2,359 402 932 596 -- --
Cost of Shares Redeemed........ (36,469) (116,892) (14,640) (7,314) (13,988) (5,226) -- --
--------- --------- -------- ------- -------- -------- ------- -------
Change in Net Assets from L
Shares Transactions............ $ (34,879) $ (90,779) $148,149 $(5,774) $ (9,000) $ 4,765 -- --
--------- --------- -------- ------- -------- -------- ------- -------
Change in Net Assets from Capital
Transactions................... $ (62,975) $ 34,962 $310,066 $(4,417) $ (7,850) $ (393) $ 7,612 $33,621
========= ========= ======== ======= ======== ======== ======= =======
Share Transactions:
T Shares(1):
Issued......................... 10,801 26,070 21,614 614 766 1,826 1,134 3,517
Reinvested..................... 423 397 373 27 47 28 12 --
Redeemed....................... (13,622) (13,982) (7,664) (514) (705) (2,329) (372) (159)
--------- --------- -------- ------- -------- -------- ------- -------
Change in T Shares
Transactions................. (2,398) 12,485 14,323 127 108 (475) 774 3,358
--------- --------- -------- ------- -------- -------- ------- -------
A Shares(2):
Issued......................... 328 790 1,808 -- --
Reinvested..................... 18 27 22 -- --
Redeemed....................... (699) (1,176) (690) -- --
--------- --------- -------- ------- -------- -------- ------- -------
Change in A Shares
Transactions................. (353) (359) 1,140 -- --
--------- --------- -------- ------- -------- -------- ------- -------
L Shares(3):
Issued......................... 45 2,282 15,321 112 375 886 -- --
Reinvested..................... 104 215 225 39 88 56 -- --
Redeemed....................... (3,565) (11,317) (1,396) (705) (1,323) (491) -- --
--------- --------- -------- ------- -------- -------- ------- -------
Change in L Shares
Transactions................. (3,416) (8,820) 14,150 (554) (860) 451 -- --
--------- --------- -------- ------- -------- -------- ------- -------
Change in Share Transactions... (6,167) 3,306 29,613 (427) (752) (24) 774 3,358
========= ========= ======== ======= ======== ======== ======= =======
</Table>
115
<Table>
<Caption>
Short-Term Short-Term U.S. Treasury Strategic Income
Bond Fund Securities Fund Fund
- --------------------------------- --------------------------------- ---------------------------------
06/01/04- 06/01/03- 06/01/02- 06/01/04- 06/01/03- 06/01/02- 06/01/04- 06/01/03- 06/01/02-
03/31/05 05/31/04 05/31/03 03/31/05 05/31/04 05/31/03 03/31/05 05/31/04 05/31/03
- --------- --------- --------- --------- --------- --------- --------- --------- ---------
$ 95,870 $ 112,609 $ 117,712 $ 17,440 $ 16,704 $ 42,670 $115,818 $ 61,718 $ 33,833
1,755 2,305 2,890 510 678 653 1,019 789 607
(87,950) (129,543) (124,705) (38,823) (44,103) (30,621) (21,438) (23,966) (17,743)
- --------- --------- --------- --------- --------- --------- --------- --------- ---------
$ 9,675 $ (14,629) $ (4,103) $(20,873) $(26,721) $ 12,702 $ 95,399 $ 38,541 $ 16,697
- --------- --------- --------- --------- --------- --------- --------- --------- ---------
$ 2,913 $ 5,818 $ 7,799 $ 1,435 $ 11,230 $ 19,530 $ 2,095 $ 4,920 --
87 115 108 145 349 217 110 41 --
(3,030) (5,618) (7,986) (7,892) (13,938) (9,039) (2,794) (682) --
- --------- --------- --------- --------- --------- --------- --------- --------- ---------
$ (30) $ 315 $ (79) $ (6,312) $ (2,359) $ 10,708 $ (589) $ 4,279 --
- --------- --------- --------- --------- --------- --------- --------- --------- ---------
$ 929 $ 8,024 $ 18,740 $ 1,211 $ 16,687 $ 95,244 $ 4,056 $ 75,089 $103,253
240 449 600 759 1,810 2,065 2,865 5,643 2,635
(9,382) (16,981) (13,276) (29,576) (81,783) (41,630) (48,814) (91,009) (18,667)
- --------- --------- --------- --------- --------- --------- --------- --------- ---------
$ (8,213) $ (8,508) $ 6,064 $(27,606) $(63,286) $ 55,679 $(41,893) $(10,277) $ 87,221
- --------- --------- --------- --------- --------- --------- --------- --------- ---------
$ 1,432 $ (22,822) $ 1,882 $(54,791) $(92,366) $ 79,089 $ 52,917 $ 32,543 $103,918
========= ========= ========= ========= ========= ========= ========= ========= =========
9,702 11,306 11,842 1,707 1,628 4,134 11,187 6,185 3,513
179 232 291 51 66 63 100 79 63
(8,895) (13,012) (12,539) (3,837) (4,296) (2,965) (2,101) (2,410) (1,840)
- --------- --------- --------- --------- --------- --------- --------- --------- ---------
986 (1,474) (406) (2,079) (2,602) 1,232 9,186 3,854 1,736
- --------- --------- --------- --------- --------- --------- --------- --------- ---------
296 583 780 139 1,096 1,894 203 489 --
9 11 11 14 34 21 11 4 --
(308) (563) (801) (781) (1,363) (876) (271) (67) --
- --------- --------- --------- --------- --------- --------- --------- --------- ---------
(3) 31 (10) (628) (233) 1,039 (57) 426 --
- --------- --------- --------- --------- --------- --------- --------- --------- ---------
96 803 1,882 119 1,622 9,251 435 7,519 10,641
24 45 60 76 178 200 282 566 273
(955) (1,703) (1,333) (2,946) (7,989) (4,041) (4,871) (9,144) (1,940)
- --------- --------- --------- --------- --------- --------- --------- --------- ---------
(835) (855) 609 (2,751) (6,189) 5,410 (4,154) (1,059) 8,974
- --------- --------- --------- --------- --------- --------- --------- --------- ---------
148 (2,298) 193 (5,458) (9,024) 7,681 4,975 3,221 10,710
========= ========= ========= ========= ========= ========= ========= ========= =========
<Caption>
U.S. Government
Securities Fund
- --------- ---------------------------------
06/01/04- 06/01/04- 06/01/03- 06/01/02-
03/31/05 03/31/05 05/31/04 05/31/03
- --------- --------- --------- ---------
$ 95,870 $ 80,344 $138,247 $135,338
1,755 2,238 3,400 3,379
(87,950) (64,224) (85,923) (57,596)
- --------- --------- --------- ---------
$ 9,675 $ 18,358 $ 55,724 $ 81,121
- --------- --------- --------- ---------
$ 2,913 $ 2,421 $ 11,471 $ 16,742
87 142 241 257
(3,030) (8,089) (12,029) (16,515)
- --------- --------- --------- ---------
$ (30) $ (5,526) $ (317) $ 484
- --------- --------- --------- ---------
$ 929 $ 160 $ 4,150 $ 19,543
240 295 645 1,155
(9,382) (7,370) (23,438) (14,717)
- --------- --------- --------- ---------
$ (8,213) $ (6,915) $(18,643) $ 5,981
- --------- --------- --------- ---------
$ 1,432 $ 5,917 $ 36,764 $ 87,586
========= ========= ========= =========
9,702 7,670 13,051 12,606
179 213 322 314
(8,895) (6,141) (8,140) (5,359)
- --------- --------- --------- ---------
986 1,742 5,233 7,561
- --------- --------- --------- ---------
296 231 1,088 1,551
9 14 23 24
(308) (769) (1,145) (1,531)
- --------- --------- --------- ---------
(3) (524) (34) 44
- --------- --------- --------- ---------
96 15 387 1,819
24 28 61 107
(955) (704) (2,218) (1,367)
- --------- --------- --------- ---------
(835) (661) (1,770) 559
- --------- --------- --------- ---------
148 557 3,429 8,164
========= ========= ========= =========
</Table>
116
<Table>
<Caption>
Virginia Intermediate Municipal Virginia Municipal
Bond Fund Bond Fund
--------------------------------- ---------------------------------
06/01/04- 06/01/03- 06/01/02- 06/01/04- 06/01/03- 06/01/02-
03/31/05 05/31/04 05/31/03 03/31/05 05/31/04 05/31/03
--------- --------- --------- --------- --------- ---------
Capital Transactions:
T Shares(1):
Proceeds from Shares Issued............................. $ 15,236 $ 19,400 $ 28,200 $ 9,839 $ 8,850 $ 8,431
Dividends Reinvested.................................... 1,109 1,285 1,656 361 477 185
Cost of Shares Redeemed................................. (20,317) (35,871) (22,296) (5,501) (10,867) (19,915)
-------- -------- -------- ------- -------- --------
Change in Net Assets from T Shares Transactions......... $ (3,972) $(15,186) $ 7,560 $ 4,699 $ (1,540) $(11,299)
-------- -------- -------- ------- -------- --------
A Shares(2):
Proceeds from Shares Issued............................. $ 1,326 $ 5,471 $ 4,074 $ 198 $ 128 --
Dividends Reinvested.................................... 271 308 249 4 -- --
Cost of Shares Redeemed................................. (5,030) (5,091) (1,425) (150) -- --
-------- -------- -------- ------- -------- --------
Change in Net Assets from A Shares Transactions......... $ (3,433) $ 688 $ 2,898 $ 52 $ 128 --
-------- -------- -------- ------- -------- --------
L Shares(3):
Proceeds from Shares Issued............................. $ 236 $ 2,118 $ 6,447
Dividends Reinvested.................................... 203 458 312
Cost of Shares Redeemed................................. (3,651) (8,927) (4,047)
-------- -------- -------- ------- -------- --------
Change in Net Assets from L Shares Transactions......... $(3,212) $ (6,351) $ 2,712
-------- -------- -------- ------- -------- --------
Change in Net Assets from Capital Transactions.......... $ (7,405) $(14,498) $ 10,458 $ 1,539 $ (7,763) $ (8,587)
======== ======== ======== ======= ======== ========
Share Transactions:
T Shares(1):
Issued.................................................. 1,487 1,860 2,707 941 821 785
Reinvested.............................................. 108 123 159 34 45 17
Redeemed................................................ (1,980) (3,434) (2,131) (527) (1,017) (1,857)
-------- -------- -------- ------- -------- --------
Change in T Shares Transactions......................... (385) (1,451) 735 448 (151) (1,055)
-------- -------- -------- ------- -------- --------
A Shares(2):
Issued.................................................. 130 518 389 19 12 --
Reinvested.............................................. 26 30 24 -- -- --
Redeemed................................................ (491) (489) (136) (14) -- --
-------- -------- -------- ------- -------- --------
Change in A Shares Transactions......................... (335) 59 277 5 12 --
-------- -------- -------- ------- -------- --------
L Shares(3):
Issued.................................................. 24 194 593
Reinvested.............................................. 19 43 29
Redeemed................................................ (347) (828) (373)
-------- -------- -------- ------- -------- --------
Change in L Shares Transactions......................... (304) (591) 249
-------- -------- -------- ------- -------- --------
Change in Share Transactions............................ (720) (1,392) 1,012 149 (730) (806)
======== ======== ======== ======= ======== ========
</Table>
* Commencement of operations.
(1) T shares were offered beginning on January 8, 2004 for the North Carolina
Tax-Exempt Bond Fund.
(2) A shares were offered beginning on October 27, 2003, March 21, 2005, October
8, 2003 and May 11, 2004 for the High Income Fund, the North Carolina
Tax-Exempt Bond Fund, the Strategic Income Fund and the Virginia Municipal
Bond Fund, respectively.
(3) L shares were offered beginning on March 21, 2005 for the North Carolina
Tax-Exempt Bond Fund.
Amounts designated as "--" are $0 or have been rounded to $0.
117
7. Federal Tax Policies and Information
It is the policy of each Fund to continue to qualify as a regulated investment
company by complying with the provisions available to certain investment
companies as defined in applicable sections of the Internal Revenue Code, and to
make distributions from net investment income and from net realized gains
sufficient to relieve it from all, or substantially all, federal income taxes.
Withholding taxes on foreign dividends have been paid or provided for in
accordance with applicable country's tax rules and rates.
At March 31, 2005, the total cost of securities and the net realized gains or
losses on securities sold for Federal income tax purposes were different from
amounts reported for financial reporting purposes generally due to wash sales
which cannot be used for Federal income tax purposes in the current year and
have been deferred for use in future years. The Federal tax cost and aggregate
gross unrealized appreciation and depreciation for securities held by the Funds
at March 31, 2005, were as follows (in thousands):
<Table>
<Caption>
Aggregate Aggregate Net
Gross Gross Unrealized
Federal Unrealized Unrealized Appreciation
Tax Cost Appreciation Depreciation (Depreciation)
-------- ------------ ------------ --------------
Florida Tax-Exempt Bond Fund................................ $174,541 $3,174 $ (944) $ 2,230
Georgia Tax-Exempt Bond Fund................................ 106,458 2,519 (225) 2,294
High Income Fund............................................ 109,631 1,802 (1,817) (15)
Investment Grade Bond Fund.................................. 929,357 4,748 (5,466) (718)
Investment Grade Tax-Exempt Bond Fund....................... 322,338 3,009 (1,634) 1,375
Limited-Term Federal Mortgage Securities Fund............... 486,396 972 (5,512) (4,540)
Maryland Municipal Bond Fund................................ 43,616 1,103 (112) 991
North Carolina Tax-Exempt Bond Fund......................... 42,774 86 (388) (302)
Short-Term Bond Fund........................................ 371,646 350 (3,518) (3,168)
Short-Term U.S. Treasury Securities Fund.................... 110,752 -- (1,025) (1,025)
Strategic Income Fund....................................... 345,479 2,361 (4,014) (1,653)
U.S. Government Securities Fund............................. 434,732 2,282 (2,735) (453)
Virginia Intermediate Municipal Bond Fund................... 181,396 3,162 (744) 2,418
Virginia Municipal Bond Fund................................ 53,831 1,529 (153) 1,376
</Table>
The tax character of distributions paid to shareholders during the fiscal year
ended March 31, 2005 was as follows (in thousands):
<Table>
<Caption>
Distributions paid from
--------------------------
Net Net Total Total
Investment Long Term Taxable Tax-Exempt Distributions
Fund Income Capital Gains Distributions Distributions Paid*
- ---- ---------- ------------- ------------- ------------- -------------
Florida Tax-Exempt Bond Fund......................... $ 183 $1,935 $ 2,118 $4,221 $ 6,339
Georgia Tax-Exempt Bond Fund......................... -- 2,446 2,446 2,857 5,303
High Income Fund..................................... 7,686 3,222 10,908 -- 10,908
Investment Grade Bond Fund........................... 16,165 -- 16,165 -- 16,165
Investment Grade Tax-Exempt Bond Fund................ 2,491 1,716 4,207 5,012 9,219
Limited-Term Federal Mortgage Securities Fund........ 15,039 -- 15,039 -- 15,039
Maryland Municipal Bond Fund......................... -- 385 385 1,244 1,629
North Carolina Tax-Exempt Bond Fund.................. 144 -- 144 953 1,097
Short-Term Bond Fund................................. 6,112 -- 6,112 -- 6,112
Short-Term U.S. Treasury Securities Fund............. 2,056 897 2,953 -- 2,953
Strategic Income Fund................................ 8,663 1,163 9,826 -- 9,826
U.S. Government Securities Fund...................... 9,498 -- 9,498 -- 9,498
Virginia Intermediate Municipal Bond Fund............ -- 1,613 1,613 5,139 6,752
Virginia Municipal Bond Fund......................... -- 840 840 1,558 2,398
</Table>
* Total distributions paid differ from the Statement of Changes in Net Assets
because for tax purposes dividends are recognized when actually paid.
118
The tax character of distributions paid to shareholders during the fiscal year
ended May 31, 2004, was as follows (in thousands):
<Table>
<Caption>
Distributions paid from
--------------------------
Net Net Total Total
Investment Long Term Taxable Tax-Exempt Distributions
Fund Income Capital Gains Distributions Distributions Paid*
- ---- ---------- ------------- ------------- ------------- -------------
Florida Tax-Exempt Bond Fund......................... $ 973 $2,705 $ 3,678 $5,436 $ 9,114
Georgia Tax-Exempt Bond Fund......................... 2 827 829 3,770 4,599
High Income Fund..................................... 14,342 -- 14,342 -- 14,342
Investment Grade Bond Fund........................... 26,425 -- 26,425 -- 26,425
Investment Grade Tax-Exempt Bond Fund................ 3,652 1,555 5,207 5,330 10,537
Limited-Term Federal Mortgage Securities Fund........ 15,208 -- 15,208 -- 15,208
Maryland Municipal Bond Fund......................... 66 940 1,006 1,615 2,621
North Carolina Tax-Exempt Bond Fund.................. 251 -- 251 -- 251
Short-Term Bond Fund................................. 8,004 -- 8,004 -- 8,004
Short-Term U.S. Treasury Securities Fund............. 3,462 1,663 5,125 -- 5,125
Strategic Income Fund................................ 11,744 558 12,302 -- 12,302
U.S. Government Securities Fund...................... 10,576 598 11,174 -- 11,174
Virginia Intermediate Municipal Bond Fund............ -- 1,695 1,695 6,527 8,222
Virginia Municipal Bond Fund......................... 42 1,236 1,278 1,945 3,223
</Table>
* Total distributions paid differ from the Statement of Changes in Net Assets
because for tax purposes dividends are recognized when actually paid.
The tax character of distributions paid to shareholders during the fiscal year
ended May 31, 2003, was as follows (in thousands):
<Table>
<Caption>
Distributions paid from
--------------------------
Net Net Total Total
Investment Long Term Taxable Tax-Exempt Distributions
Fund Income Capital Gains Distributions Distributions Paid*
- ---- ---------- ------------- ------------- ------------- -------------
Florida Tax-Exempt Bond Fund......................... $ 733 $ 72 $ 805 $5,721 $ 6,526
Georgia Tax-Exempt Bond Fund......................... -- -- -- 3,907 3,907
High Income Fund..................................... 8,030 -- 8,030 -- 8,030
Investment Grade Bond Fund........................... 40,114 -- 40,114 -- 40,114
Investment Grade Tax-Exempt Bond Fund................ 6,573 1,856 8,429 5,199 13,628
Limited-Term Federal Mortgage Securities Fund........ 11,822 -- 11,822 -- 11,822
Maryland Municipal Bond Fund......................... 40 31 71 1,925 1,996
Short-Term Bond Fund................................. 11,180 -- 11,180 -- 11,180
Short-Term U.S. Treasury Securities Fund............. 5,476 269 5,745 -- 5,745
Strategic Income Fund................................ 7,067 -- 7,067 -- 7,067
U.S. Government Securities Fund...................... 11,422 31 11,453 -- 11,453
Virginia Intermediate Municipal Bond Fund............ 59 1,922 1,981 7,247 9,228
Virginia Municipal Bond Fund......................... 3 176 179 2,367 2,546
</Table>
* Total distributions paid differ from the Statement of Changes in Net Assets
because for tax purposes dividends are recognized when actually paid.
119
As of March 31, 2005 the components of accumulated earnings (deficit) on a tax
basis were as follows (in thousands):
<Table>
<Caption>
Accumulated
Undistributed Undistributed Undistributed Capital and Unrealized
Tax-Exempt Ordinary Long Term Accumulated Distributions Other Appreciation
Fund Income Income Capital Gains Earnings Payable Losses** (Depreciation)
- ---- ------------- ------------- ------------- ----------- ------------- ----------- --------------
Florida Tax-Exempt
Bond Fund.......... $424 $ -- $ -- $ 424 $ (435) $ (144) $ 2,230
Georgia Tax-Exempt
Bond Fund.......... 420 -- 103 523 (282) -- 2,294
High Income Fund..... -- 2,865 1,427 4,292 (639) -- (15)
Investment Grade Bond
Fund............... -- 1,709 -- 1,709 (1,746) (13,352) (718)
Investment Grade Tax-
Exempt Bond Fund... 379 -- 1,345 1,724 (541) -- 1,375
Limited-Term Federal
Mortgage Securities
Fund............... -- 1,608 -- 1,608 (1,477) (10,276) (4,540)
Maryland Municipal
Bond Fund.......... 83 6 161 250 (126) -- 991
North Carolina Tax-
Exempt Bond Fund... 40 4 -- 44 (33) (138) (302)
Short-Term Bond
Fund............... -- 760 -- 760 (718) (10,117) (3,168)
Short-Term U.S.
Treasury Securities
Fund............... -- 182 -- 182 (182) (893) (1,023)
Strategic Income
Fund............... -- 7,843 1,824 9,667 (833) -- (1,657)
U.S. Government
Securities Fund.... -- 1,203 -- 1,203 (988) (4,553) (453)
Virginia Intermediate
Municipal Bond
Fund............... 484 -- 768 1,252 (509) -- 2,418
Virginia Municipal
Bond Fund.......... 130 -- 279 409 (162) -- 1,376
<Caption>
Total
Accumulated
Earnings
Fund (Deficit)
- ---- -----------
Florida Tax-Exempt
Bond Fund.......... $ 2,075
Georgia Tax-Exempt
Bond Fund.......... 2,535
High Income Fund..... 3,638
Investment Grade Bond
Fund............... (14,107)
Investment Grade Tax-
Exempt Bond Fund... 2,558
Limited-Term Federal
Mortgage Securities
Fund............... (14,685)
Maryland Municipal
Bond Fund.......... 1,115
North Carolina Tax-
Exempt Bond Fund... (429)
Short-Term Bond
Fund............... (13,243)
Short-Term U.S.
Treasury Securities
Fund............... (1,916)
Strategic Income
Fund............... 7,177
U.S. Government
Securities Fund.... (4,791)
Virginia Intermediate
Municipal Bond
Fund............... 3,161
Virginia Municipal
Bond Fund.......... 1,623
</Table>
** As of the latest tax year end of March 31, 2005, the following Funds had net
capital loss carryovers to offset future net capital gains, if any, to the
extent provided by the Treasury regulations. To the extent that these
carryovers are used to offset future gains, it is probable that the gains so
offset will not be distributed to shareholders:
<Table>
<Caption>
Fund 2009 2011 2012 2013
- ---- ----------- ----------- ----------- -----------
Florida Tax-Exempt Bond Fund................................ $ -- $ -- $ -- $ 1,156
Investment Grade Bond Fund.................................. 13,352,408 -- -- --
Limited-Term Federal Mortgage Securities Fund............... -- -- 5,161,857 3,272,116
North Carolina Tax-Exempt Bond Fund......................... -- -- -- --
Short-Term Bond Fund........................................ 352,148 9,216,421 -- --
Short-Term U.S. Treasury Securities Fund.................... -- -- -- 245,588
U.S. Government Securities Fund............................. -- -- 2,697,890 507,920
</Table>
During the period ended March 31, 2005, the Investment Grade Bond Fund and
Short-Term Bond Fund utilized $1,537,623 and $160,851 in capital loss
carryforwards, respectively.
Net capital losses incurred after October 31, and within the taxable year are
deemed to arise on the first business day of the Funds' next taxable year. The
Funds have incurred and will elect to defer capital losses as follows:
<Table>
<Caption>
Fund Capital Losses
- ---- --------------
Florida Tax-Exempt Bond Fund................................ $ 143,659
Limited-Term Federal Mortgage Securities Fund............... 1,841,823
North Carolina Tax-Exempt Bond Fund......................... 138,543
Short-Term Bond Fund........................................ 548,829
Short-Term U.S. Treasury Securities Fund.................... 647,720
U.S. Government Securities Fund............................. 1,346,906
</Table>
120
NOTES TO FINANCIAL STATEMENTS (concluded)
STI CLASSIC FIXED INCOME FUNDS March 31, 2005
8. Concentrations/Risks
The prices of the Funds' fixed income securities respond to economic
developments, particularly interest rate changes, as well as to perceptions
about the creditworthiness of individual issuers, including governments.
Generally, the Funds' fixed income securities will decrease in value if interest
rates rise and vice versa, and the volatility of lower-rated securities is even
greater than that of higher-rated securities. Also, longer-term securities are
generally more volatile, so the average maturity or duration of these securities
affects risk.
The High Income and Strategic Income Funds invest in high yield corporate,
government, and other debt instruments of U.S. and non-U.S. issuers. High yield
securities involve greater risk of default or downgrade and are more volatile
than investment grade securities. The High Income and Strategic Income Funds'
investment in foreign countries poses additional risks since political and
economic events unique to a country or region will affect those markets and
their issuers. In addition, investments in foreign countries are generally
denominated in a foreign currency. As a result, changes in the value of those
currencies compared to the U.S. dollar may affect the value of a Fund's
investment.
The Florida Tax-Exempt Bond, Georgia Tax-Exempt Bond, Maryland Municipal Bond,
North Carolina Tax-Exempt Bond, Virginia Intermediate Municipal Bond, and
Virginia Municipal Bond Funds' concentrations of investments in securities of
issuers located in a specific region subjects each Fund to the economic and
government policies of that region.
The Investment Grade Bond, Limited-Term Federal Mortgage Securities, Short-Term
Bond, and U.S. Government Securities Funds invest in securities whose value is
derived from an underlying pool of mortgages or consumer loans. Prepayment of
these loans shortens the stated maturity of these respective obligations and may
result in a loss of premium, if any has been paid. Estimates of such prepayments
are used to calculate expected maturity dates and a fund's average duration.
Certain securities are backed by letters of credit from various financial
institutions and financial guaranty assurance agencies. These letters of credit
enhance the credit quality of the individual securities; however, if any of the
financial institutions or financial guaranty assurance agencies' credit quality
should deteriorate, it could cause the individual security's credit quality to
change. Additionally, if any of the Funds concentrate their letters of credit in
any one financial institution, the risk of credit quality deterioration
increases.
9. Securities Lending
The High Income Fund, Investment Grade Bond Fund, Limited-Term Federal Mortgage
Securities Fund, Short-Term Bond Fund, Strategic Income Fund and U.S. Government
Securities Fund may lend portfolio securities to brokers, dealers and other
financial organizations that meet capital and other credit requirements or other
criteria established by the Trust's Board. These loans may not exceed either (i)
50% of the sum of the market value of all securities of the Fund and the market
value of the loan collateral or (ii) 33.33% of the market value of all
securities of the Fund. No Fund will lend portfolio securities to its investment
adviser, sub-adviser, or their affiliates unless it has applied for and received
specific authority to do so from the Securities and Exchange Commission. Loans
of portfolio securities will be fully collateralized by cash. The initial value
of the collateral is at least 102% of the market value of the securities loaned,
and 100% thereafter. However, due to market fluctuations during the day, the
value of securities loaned on a particular day may, during the course of the
day, exceed the value of collateral. On each business day, the amount of
collateral is adjusted based on the prior day's market fluctuations and the
current day's lending activity. Income from lending activity is determined by
the amount of interest earned on collateral, less any amounts payable to the
borrowers of the securities and the lending agent. Lending securities involves
certain risks, including the risk that the Fund may be delayed or prevented from
recovering the collateral if the borrower fails to return the securities.
Cash collateral received in connection with securities lending is invested in
the CSFB Enhanced Liquidity Portfolio. This investment consists of money market
instruments including money market mutual funds registered under the Investment
Company Act of 1940, commercial paper, repurchase agreements, U.S. Treasury
Bills and U.S. agency obligations. At March 31, 2005, the Portfolio was invested
in commercial paper, repurchase agreements, asset backed securities and U.S.
Agency Obligations (with
121
interest rates ranging from 2.72% to 3.13% and maturity dates ranging from
04/01/05 to 03/04/08).
The Funds paid fees for securities lending for the period ended March 31, 2005,
which have been netted against the Security Lending Income on the Statements of
Operations. These fees are presented below (in thousands):
<Table>
<Caption>
Fees
----
High Income Fund..................................... $--
Investment Grade Bond Fund........................... 9
Limited-Term Federal Mortgage Securities Fund........ --
Short-Term Bond Fund................................. 1
Strategic Income Fund................................ 2
U.S. Government Securities Fund...................... 2
</Table>
Amounts designated as "--" have been rounded to $0.
122
REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM
To the Board of Trustees and Shareholders of STI Classic Funds:
In our opinion, the accompanying statements of assets and liabilities, including
the schedules of portfolio investments, and the related statements of operations
and of changes in net assets and the financial highlights present fairly, in all
material respects, the financial position of Florida Tax-Exempt Bond Fund,
Georgia Tax-Exempt Bond Fund, High Income Fund, Investment Grade Bond Fund,
Investment Grade Tax-Exempt Bond Fund, Limited-Term Federal Mortgage Securities
Fund, Maryland Municipal Bond Fund, North Carolina Tax-Exempt Bond Fund
(formerly "CCMI Tax-Exempt North Carolina Bond Fund"), Short-Term Bond Fund,
Short-Term U.S. Treasury Securities Fund, Strategic Income Fund, U.S. Government
Securities Fund, Virginia Intermediate Municipal Bond Fund and Virginia
Municipal Bond Fund (fourteen of the forty-nine funds constituting STI Classic
Funds, hereafter referred to as the "Funds") at March 31, 2005, the results of
each of their operations for the period June 1, 2004 to March 31, 2005 and the
year ended May 31, 2004, the changes in each of their net assets for the period
June 1, 2004 to March 31, 2005 and for each of the two years (or periods) in the
period ended May 31, 2004 and the financial highlights for the period June 1,
2004 to March 31, 2005 and for each of the three years (or periods) in the
period ended May 31, 2004 and the financial highlights of High Income Fund for
the year ended March 31, 2000, except for North Carolina Tax-Exempt Bond Fund
for which the results of its operations, the changes in its net assets and its
financial highlights are for the period June 1, 2004 to March 31, 2005, in
conformity with accounting principles generally accepted in the United States of
America. These financial statements and financial highlights (hereafter referred
to as "financial statements") are the responsibility of the Funds' management;
our responsibility is to express an opinion on these financial statements based
on our audits. We conducted our audits of these financial statements in
accordance with the standards of the Public Company Accounting Oversight Board
(United States). Those standards require that we plan and perform the audit to
obtain reasonable assurance about whether the financial statements are free of
material misstatement. An audit includes examining, on a test basis, evidence
supporting the amounts and disclosures in the financial statements, assessing
the accounting principles used and significant estimates made by management, and
evaluating the overall financial statement presentation. We believe that our
audits, which included confirmation of securities at March 31, 2005 by
correspondence with the custodians and brokers, provide a reasonable basis for
our opinion. The statement of operations, the statement of changes in net assets
and the financial highlights for the period January 8, 2004 (commencement of
operations) to May 31, 2004 of the predecessor fund to the North Carolina
Tax-Exempt Bond Fund were audited by other independent accountants whose report
dated July 19, 2004 expressed an unqualified opinion on those financial
statements. The financial highlights for each of the two years (or periods)
ended May 31, 2001 for all other funds were audited by other independent
accountants who have ceased operations. Those independent accountants expressed
an unqualified opinion on those financial statements in their report dated July
18, 2001.
PricewaterhouseCoopers LLP
Philadelphia, Pennsylvania
May 25, 2005
123
TRUSTEES AND OFFICERS OF THE STI CLASSIC FUNDS (UNAUDITED)
Information pertaining to the trustees of the Trust is set forth below. Trustees
who are not deemed to be "interested persons" of the Trust as defined in the
1940 Act are referred to as "Independent Board Member." Trustees who are deemed
to be "interested persons" of the Trust are referred to as "Interested Board
Member." Messrs. Courts and Ridley are Trustees who may be deemed to be
"interested persons" of the Trust.
- --------------------------------------------------------------------------------
<Table>
<Caption>
TERM OF PRINCIPAL NUMBER OF OTHER
POSITION(S) OFFICE AND OCCUPATION(S) PORTFOLIOS DIRECTORSHIPS
NAME, ADDRESS, AND HELD WITH LENGTH OF DURING THE OVERSEEN FOR HELD BY BOARD
DATE OF BIRTH THE GROUP TIME SERVED PAST 5 YEARS THE TRUST MEMBER
- -------------------------------------------------------------------------------------------------------------------------------
INTERESTED BOARD MEMBERS*
- -------------------------
Richard W. Courts, II Trustee Indefinite: Chairman, Atlantic 49 Director, Cousins
3435 Stelzer Road since Investment Company. Properties, Inc.; Director,
Columbus, OH 43219 November, 2001 Genuine Parts Co.; Director,
01/18/36 Piedmont Medical Center;
Director, SunTrust Bank,
Atlanta; Chairman, Courts
Foundation; Chairman, J.
Bulow Campbell Foundation.
Trustee of STI Classic
Variable Trust.
- -------------------------------------------------------------------------------------------------------------------------------
Clarence H. Ridley Trustee Indefinite: Chairman, Haverty Furniture 49 Director, Crawford & Co.
3435 Stelzer Road since Companies, 2001 to present; Trustee of STI Classic
Columbus, OH 43219 November, 2001 Partner, King and Spaulding Variable Trust.
06/03/42 LLP (law firm), 1977 to
2000.
- -------------------------------------------------------------------------------------------------------------------------------
INDEPENDENT BOARD MEMBERS
- -------------------------
Thomas Gallagher Trustee Indefinite: President and CEO, Genuine 49 Director, NAPA; Director,
3435 Stelzer Road since Parts Company. Genuine Parts Co.; Director,
Columbus, OH 43219 May, 2000 Stone Mountain Industrial
11/25/47 Park; Trustee, The Lovett
School; Director, Oxford
Industries. Trustee of STI
Classic Variable Trust.
- -------------------------------------------------------------------------------------------------------------------------------
F. Wendell Gooch Trustee Indefinite: Retired. 49 Trustee of STI Classic
3435 Stelzer Road since Variable Trust and SEI
Columbus, OH 43219 May, 1992 Family of Funds.
12/03/32
- -------------------------------------------------------------------------------------------------------------------------------
James O. Robbins Trustee Indefinite: President and Chief 49 Director, National Cable and
3435 Stelzer Road since Executive Officer, Cox Telecommunications
Columbus, OH 43219 May, 2000 Communications, Inc. Association; Director, Cable
07/04/42 Labs; Director, C-SPAN;
Director, Discovery Channel;
Trustee, St. Paul's Schools;
Director, Cox
Communications. Trustee of
STI Classic Variable Trust.
- -------------------------------------------------------------------------------------------------------------------------------
Jonathan T. Walton Trustee Indefinite: Retired. 49 Director, Detroit Riverfront
3435 Stelzer Road since Conservancy. Trustee of STI
Columbus, OH 43219 February, 1998 Classic Variable Trust
03/28/30
- -------------------------------------------------------------------------------------------------------------------------------
Sidney E. Harris Trustee Indefinite: Professor (since 2004) and 49 Director, ServiceMaster;
3435 Stelzer Road since Dean (1997-2004) of J. Mack Director, Total System
Columbus, OH 43219 November, 2004 Robinson College of Services, Inc.; Director,
07/21/49 Business, Georgia State Transamerica Investors, Inc.
University. Trustee of STI Classic
Variable Trust.
- -------------------------------------------------------------------------------------------------------------------------------
Warren Y. Jobe Trustee Indefinite: Retired. EVP, Georgia Power 49 Director, WellPoint, Inc.,
3435 Stelzer Road since Co. and SVP, Southern Co. Director, UniSource Energy
Columbus, OH 43219 November, 2004 (1998-2001). Corp.; Director, HomeBanc
11/12/40 Corp. Trustee of STI Classic
Variable Trust.
- -------------------------------------------------------------------------------------------------------------------------------
Charles D. Winslow Trustee Indefinite: Retired. Former Partner, 49 Trustee of STI Classic
3435 Stelzer Road since Accenture. Variable Trust.
Columbus, OH 43219 November, 2004
07/13/35
- -------------------------------------------------------------------------------------------------------------------------------
Connie D. McDaniel Trustee Indefinite: Vice President and 49 Trustee of STI Classic
3435 Stelzer Road since Controller, The Coca-Cola Variable Trust.
Columbus, OH 43219 May, 2005 Co.
04/10/58
- -------------------------------------------------------------------------------------------------------------------------------
</Table>
* Mr. Courts may be deemed an interested Trustee because of his directorships
with affiliates of the Adviser. Mr. Ridley may be deemed an interested
Trustee because of a material business relationship with the parent of the
Adviser.
124
TRUSTEES AND OFFICERS OF THE STI CLASSIC FUNDS (UNAUDITED)
<Table>
<Caption>
TERM OF
OFFICE AND PRINCIPAL
POSITION(S) LENGTH OF OCCUPATION(S)
NAME, ADDRESS, AND HELD WITH TIME DURING THE
DATE OF BIRTH THE GROUP SERVED PAST 5 YEARS
- -----------------------------------------------------------------------------------------------------------------------
OFFICERS
- --------
R. Jeffrey Young President Since 2004 Senior Vice President, Relationship Management, BISYS Fund
3435 Stelzer Road Services since April 2002. Vice President, Client Services,
Columbus, OH 43219 BISYS Fund Services from May 1997 to April 2002.
08/22/64
- -----------------------------------------------------------------------------------------------------------------------
David L. Hughes Treasurer and Since 2005 Vice President, Financial Administration, BISYS Fund
3435 Stelzer Road CFO Services since February 2005. Assistant Vice President,
Columbus, OH 43219 Evergreen Investments from 2000 to 2004; Fund Accounting
01/25/63 Manager, Fidelity Investments from 1998 to 2000.
- -----------------------------------------------------------------------------------------------------------------------
Deborah A. Lamb Executive Vice Since 2003 Chief Compliance Officer and Managing Director of Trusco
50 Hurt Plaza President, Capital Management, Inc. since March 2003 and President of
Atlanta, Georgia 30303 Assistant Investment Industry Consultants, LLC since June 2000.
10/02/52 Secretary and Director of Compliance at INVESCO, Inc. from March 1995 to
CCO June 2000.
- -----------------------------------------------------------------------------------------------------------------------
Cynthia J. Surprise Secretary Since 2005 Senior Counsel, Legal Services, BISYS Fund Services since
3435 Stelzer Road December 2004. Director and Counsel, Investors Bank & Trust
Columbus, OH 43219 Company from October 1999 to November 2004.
07/08/46
- -----------------------------------------------------------------------------------------------------------------------
Alaina V. Metz Assistant Since 2004 Vice President, Blue Sky Compliance, BISYS Fund Services
3435 Stelzer Road Secretary since January 2002. Chief Administrative Officer, Blue Sky
Columbus, OH 43219 Compliance, BISYS Fund Services from June 1995 to January
04/07/67 2002.
- -----------------------------------------------------------------------------------------------------------------------
Julie M. Powers Assistant Since 2004 Senior Paralegal, Legal Services, BISYS Fund Services since
3435 Stelzer Road Secretary June 2000. Paralegal of Phillips, Lytle, Hitchcock, Blaine &
Columbus, OH 43219 Huber LLP from March 1998 to June 2000.
10/08/69
- -----------------------------------------------------------------------------------------------------------------------
</Table>
125
EXPENSE EXAMPLES (UNAUDITED)
As a shareholder of the STI Classic Funds, you incur two types of costs: (1)
transaction costs, including sales charges; and redemption fees; (2) ongoing
costs, including management fees; distribution [and/or service] 12b-1 fees; and
other Fund expenses. This example is intended to help you understand your
ongoing costs (in dollars) of investing in the STI Classic Funds and to compare
these costs with the ongoing costs of investing in other mutual funds.
The Example is based on an investment of $1,000 invested at the beginning of the
period and held for the entire period from October 1, 2004 through March 31,
2005.
Actual Expenses
The table below provides information about actual account values and actual
expenses. You may use the information below, together with the amount you
invested, to estimate the expenses that you paid over the period. Simply divide
your account value by $1,000 (for example, an $8,600 account value divided by
$1,000 = 8.6), then multiply the result by the number in the table under the
heading entitled "Expenses Paid During Period" to estimate the expenses you paid
on your account during this period.
<Table>
<Caption>
Beginning Ending Expense Paid Expense Ratio
Account Value Account Value During Period* During Period**
10/01/04 3/31/05 10/01/04-3/31/05 10/01/04-3/31/05
------------- ------------- ---------------- ----------------
Florida Tax-Exempt Bond Fund.................... T Shares $1,000.00 $ 997.20 $3.34 0.67%
A Shares 1,000.00 997.20 4.23 0.85%
L Shares 1,000.00 994.30 7.11 1.43%
Georgia Tax-Exempt Bond Fund.................... T Shares 1,000.00 1,005.70 3.35 0.67%
A Shares 1,000.00 1,004.80 4.25 0.85%
L Shares 1,000.00 1,001.90 7.14 1.43%
High Income Fund................................ T Shares 1,000.00 1,037.30 3.61 0.71%
A Shares 1,000.00 1,037.10 5.18 1.02%
L Shares 1,000.00 1,033.70 7.15 1.41%
Investment Grade Bond Fund...................... T Shares 1,000.00 1,007.40 3.85 0.77%
A Shares 1,000.00 1,005.20 6.00 1.20%
L Shares 1,000.00 1,002.70 8.54 1.71%
Investment Grade Tax-Exempt Bond Fund........... T Shares 1,000.00 1,001.00 3.84 0.77%
A Shares 1,000.00 998.90 5.93 1.19%
L Shares 1,000.00 996.30 8.51 1.71%
Limited-Term Federal Mortgage Securities Fund... T Shares 1,000.00 1,002.20 3.24 0.65%
A Shares 1,000.00 1,001.00 4.44 0.89%
L Shares 1,000.00 999.90 6.58 1.32%
Maryland Municipal Bond Fund.................... T Shares 1,000.00 1,004.20 3.15 0.63%
L Shares 1,000.00 998.20 8.12 1.63%
North Carolina Tax-Exempt Bond Fund............. T Shares 1,000.00 995.80 2.74 0.55%
A Shares(a) 1,000.00 991.10 -- 0.00%
L Shares(a) 1,000.00 991.10 -- 0.00%
Short-Term Bond Fund............................ T Shares 1,000.00 999.60 3.29 0.66%
A Shares 1,000.00 997.50 4.43 0.89%
L Shares 1,000.00 996.60 6.32 1.27%
Short-Term U.S. Treasury Securities Fund........ T Shares 1,000.00 998.70 3.24 0.65%
A Shares 1,000.00 997.80 4.13 0.83%
L Shares 1,000.00 996.40 5.57 1.12%
Strategic Income Fund........................... T Shares 1,000.00 1,040.80 4.32 0.85%
A Shares 1,000.00 1,041.20 5.90 1.16%
L Shares 1,000.00 1,037.60 7.57 1.49%
U.S. Government Securities Fund................. T Shares 1,000.00 1,007.60 3.85 0.77%
A Shares 1,000.00 1,004.70 5.85 1.17%
L Shares 1,000.00 1,001.80 8.68 1.74%
Virginia Intermediate Municipal Bond Fund....... T Shares 1,000.00 1,000.40 3.54 0.71%
A Shares 1,000.00 1,000.00 3.99 0.80%
Virginia Municipal Bond Fund.................... T Shares 1,000.00 1,006.60 3.55 0.71%
A Shares 1,000.00 1,005.80 4.30 0.86%
L Shares 1,000.00 1,001.60 8.53 1.71%
</Table>
* Expenses are equal to the average account value times the Fund's annualized
expense ratio multiplied by the number of days in the most recent half-year
divided by the number of days in the year.
** Annualized.
(a)Class commenced operations on March 21, 2005.
126
EXPENSE EXAMPLES (UNAUDITED)
Hypothetical Example
The table below provides information about hypothetical account values and
hypothetical expenses based on each STI Classic Funds' actual expense ratio and
an assumed rate of return of 5% per year before expenses, which is not the
Fund's actual return. The hypothetical account values and expenses may not be
used to estimate the actual ending account balance or expenses you paid for the
period. You may use this information to compare this 5% hypothetical example
with the 5% hypothetical examples that appear in the shareholder reports of
other funds.
Please note that the expenses shown in the table are meant to highlight your
ongoing costs only and do not reflect any transactional costs. 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.
<Table>
<Caption>
Beginning Ending Expense Paid Expense Ratio
Account Value Account Value During Period* During Period**
10/01/04 3/31/05 10/01/04-3/31/05 10/01/04-3/31/05
------------- ------------- ---------------- ----------------
Florida Tax-Exempt Bond Fund.................... T Shares $1,000.00 $1,021.59 $3.38 0.67%
A Shares 1,000.00 1,020.69 4.28 0.85%
L Shares 1,000.00 1,017.80 7.19 1.43%
Georgia Tax-Exempt Bond Fund.................... T Shares 1,000.00 1,021.59 3.38 0.67%
A Shares 1,000.00 1,020.69 4.28 0.85%
L Shares 1,000.00 1,017.80 7.19 1.43%
High Income Fund................................ T Shares 1,000.00 1,021.39 3.58 0.71%
A Shares 1,000.00 1,019.85 5.14 1.02%
L Shares 1,000.00 1,017.90 7.09 1.41%
Investment Grade Bond Fund...................... T Shares 1,000.00 1,021.09 3.88 0.77%
A Shares 1,000.00 1,018.95 6.04 1.20%
L Shares 1,000.00 1,016.40 8.60 1.71%
Investment Grade Tax-Exempt Bond Fund........... T Shares 1,000.00 1,021.09 3.88 0.77%
A Shares 1,000.00 1,019.00 5.99 1.19%
L Shares 1,000.00 1,016.40 8.60 1.71%
Limited-Term Federal Mortgage Securities Fund... T Shares 1,000.00 1,021.69 3.28 0.65%
A Shares 1,000.00 1,020.49 4.48 0.89%
L Shares 1,000.00 1,018.35 6.64 1.32%
Maryland Municipal Bond Fund.................... T Shares 1,000.00 1,021.79 3.18 0.63%
L Shares 1,000.00 1,016.80 8.20 1.63%
North Carolina Tax-Exempt Bond Fund............. T Shares 1,000.00 1,022.19 2.77 0.55%
A Shares(a) 1,000.00 1,024.93 -- 0.00%
L Shares(a) 1,000.00 1,024.93 -- 0.00%
Short-Term Bond Fund............................ T Shares 1,000.00 1,021.64 3.33 0.66%
A Shares 1,000.00 1,020.49 4.48 0.89%
L Shares 1,000.00 1,018.60 6.39 1.27%
Short-Term U.S. Treasury Securities Fund........ T Shares 1,000.00 1,021.69 3.28 0.65%
A Shares 1,000.00 1,020.79 4.18 0.83%
L Shares 1,000.00 1,019.35 5.64 1.12%
Strategic Income Fund........................... T Shares 1,000.00 1,020.69 4.28 0.85%
A Shares 1,000.00 1,019.15 5.84 1.16%
L Shares 1,000.00 1,017.50 7.49 1.49%
U.S. Government Securities Fund................. T Shares 1,000.00 1,021.09 3.88 0.77%
A Shares 1,000.00 1,019.10 5.89 1.17%
L Shares 1,000.00 1,016.26 8.75 1.74%
Virginia Intermediate Municipal Bond Fund....... T Shares 1,000.00 1,021.39 3.58 0.71%
A Shares 1,000.00 1,020.94 4.03 0.80%
Virginia Municipal Bond Fund.................... T Shares 1,000.00 1,021.39 3.58 0.71%
A Shares 1,000.00 1,020.64 4.33 0.86%
L Shares 1,000.00 1,016.40 8.60 1.71%
</Table>
* Expenses are equal to the average account value times the Fund's annualized
expense ratio multiplied by the number of days in the most recent half-year
divided by the number of days in the year.
** Annualized.
(a)Class commenced operations on March 21, 2005.
127
SPECIAL MEETING OF SHAREHOLDERS (UNAUDITED)
A special meeting of the shareholders of STI Classic Funds (the "Funds") was
held on November 15, 2004. At the meeting shareholders voted and approved the
following proposal:
Proposal 1: To consider and vote on the election of members to the Board
of Trustees of the Trust.
The results of this meeting are presented below:
<Table>
<Caption>
RICHARD W. COURTS, II
- --------------------------------------------------------------------------------------------------------
# OF SHARES % OF OUTSTANDING SHARES % OF SHARES PRESENT
----------------- ----------------------- -------------------
Affirmative.......................... 8,643,079,484.413 57.607% 99.775%
Withhold............................. 19,527,110.520 .130% .225%
Total................................ 8,662,606,594.933 57.737% 100.000%
</Table>
<Table>
<Caption>
THOMAS C. GALLAGHER
- --------------------------------------------------------------------------------------------------------
# OF SHARES % OF OUTSTANDING SHARES % OF SHARES PRESENT
----------------- ----------------------- -------------------
Affirmative.......................... 8,647,093,895.243 57.634% 99.821%
Withhold............................. 15,512,699.690 .103% .179%
Total................................ 8,662,606,594.933 57.737% 100.000%
</Table>
<Table>
<Caption>
F. WENDELL GOOCH
- --------------------------------------------------------------------------------------------------------
# OF SHARES % OF OUTSTANDING SHARES % OF SHARES PRESENT
----------------- ----------------------- -------------------
Affirmative.......................... 8,646,942,792.353 57.632% 99.819%
Withhold............................. 15,663,802.580 .105% .181%
Total................................ 8,662,606,594.933 57.737% 100.000%
</Table>
<Table>
<Caption>
SIDNEY E. HARRIS
- --------------------------------------------------------------------------------------------------------
# OF SHARES % OF OUTSTANDING SHARES % OF SHARES PRESENT
----------------- ----------------------- -------------------
Affirmative.......................... 8,643,726,038.293 57.611% 99.782%
Withhold............................. 18,880,556.640 .126% .218%
Total................................ 8,662,606,594.933 57.737% 100.000%
</Table>
<Table>
<Caption>
WARREN Y. JOBE
- --------------------------------------------------------------------------------------------------------
# OF SHARES % OF OUTSTANDING SHARES % OF SHARES PRESENT
----------------- ----------------------- -------------------
Affirmative.......................... 8,643,699,091.683 57.611% 99.782%
Withhold............................. 18,907,503.250 .126% .218%
Total................................ 8,662,606,594.933 57.737% 100.000%
</Table>
<Table>
<Caption>
CLARENCE H. RIDLEY
- --------------------------------------------------------------------------------------------------------
# OF SHARES % OF OUTSTANDING SHARES % OF SHARES PRESENT
----------------- ----------------------- -------------------
Affirmative.......................... 8,643,065,943.353 57.607% 99.774%
Withhold............................. 19,540,651.580 .130% .226%
Total................................ 8,662,606,594.933 57.737% 100.000%
</Table>
<Table>
<Caption>
JAMES O. ROBBINS
- --------------------------------------------------------------------------------------------------------
# OF SHARES % OF OUTSTANDING SHARES % OF SHARES PRESENT
----------------- ----------------------- -------------------
Affirmative.......................... 8,643,422,544.023 57.609% 99.779%
Withhold............................. 19,184,050.910 .128% .221%
Total................................ 8,662,606,594.933 57.737% 100.000%
</Table>
128
SPECIAL MEETING OF SHAREHOLDERS (UNAUDITED)
<Table>
<Caption>
JONATHAN T. WALTON
- --------------------------------------------------------------------------------------------------------
# OF SHARES % OF OUTSTANDING SHARES % OF SHARES PRESENT
----------------- ----------------------- -------------------
Affirmative.......................... 8,647,114,982.373 57.634% 99.821%
Withhold............................. 15,491,612.560 .103% .179%
Total................................ 8,662,606,594.933 57.737% 100.000%
</Table>
<Table>
<Caption>
CHARLES D. WINSLOW
- --------------------------------------------------------------------------------------------------------
# OF SHARES % OF OUTSTANDING SHARES % OF SHARES PRESENT
----------------- ----------------------- -------------------
Affirmative.......................... 8,643,530,202.353 57.610% 99.780%
Withhold............................. 19,076,392.580 .127% .220%
Total................................ 8,662,606,594.933 57.737% 100.000%
</Table>
Proxy Voting
Information regarding the policies and procedures that the Funds use to
determine how to vote proxies relating to portfolio securities during the period
ended March 31, 2005 is available (1) without charge, upon request, by calling
1-800-428-6970, or on the Funds' website at www.sticlassicfunds.com, and (2) on
the Securities and Exchange Commission's website at www.sec.gov.
Other Information
The Funds file a complete list of their portfolio holdings with the Securities
and Exchange Commission for the first and third quarters of each fiscal year on
Form N-Q. Forms N-Q are available free of charge on the Securities and Exchange
Commission's website at www.sec.gov. You may also review, or for a fee, copy
those documents by visiting the Securities and Exchange Commission's Public
Reference Room in Washington, D.C. Information on the operation of the Public
Reference Room may be obtained by calling the Securities and Exchange Commission
at 1-800-SEC-0330.
129
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130
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131
2005 ANNUAL REPORT
--------------------------------------
STI CLASSIC MONEY MARKET FUNDS
----------------------------------
March 31, 2005
[STI CLASSIC FUNDS LOGO]
TABLE OF CONTENTS
================================================================================
STI CLASSIC MONEY MARKET FUNDS ANNUAL REPORT, MARCH 31, 2005
President and CIO Letter to Shareholders.......................................................................1
MANAGEMENT DISCUSSION AND ANALYSIS
Prime Quality Money Market Fund................................................................................3
Tax-Exempt Money Market Fund...................................................................................4
U.S. Government Securities Money Market Fund...................................................................5
U.S. Treasury Money Market Fund................................................................................6
Virginia Tax-Free Money Market Fund............................................................................7
SCHEDULE OF PORTFOLIO INVESTMENTS
Prime Quality Money Market Fund................................................................................9
Tax-Exempt Money Market Fund..................................................................................13
U.S. Government Securities Money Market Fund..................................................................25
U.S. Treasury Money Market Fund...............................................................................27
Virginia Tax-free Money Market Fund...........................................................................29
Notes to Schedule of Portfolio Investments....................................................................33
Statements of Assets and Liabilities..........................................................................34
Statements of Operations......................................................................................35
Statements of Changes in Net Assets...........................................................................37
Financial Highlights..........................................................................................39
Notes to Financial Statements.................................................................................43
Report of Independent Registered Public Accounting Firm.......................................................51
Trustees and Officers of the STI Classic Funds................................................................52
Expense Examples..............................................................................................54
Special Meeting of Shareholders...............................................................................56
PRESIDENT AND CIO LETTER TO SHAREHOLDERS
================================================================================
MARCH 31, 2005
Dear Valued STI Classic Funds Shareholder,
The STI Classic Funds changed its official fiscal year end from May 31 to March
31. As a result, the "annual" shareholder letter this year will cover the 10
month period from June 1, 2004 through March 31, 2005. A great many pressures,
policies, and events took place during this shorter time frame, and we will
provide our perspective on how this has affected the direction and pace of the
economy and financial markets.
Amid a firming economic backdrop and despite rising "headwinds," both the equity
and bond markets registered net gains in the 10 month period ended March 31,
2005. The large-cap benchmark S&P 500 stock index rose 6.9% on a total return
basis, while the Lehman Aggregate Bond Index gained 4.3%, though the path to
both performances was anything but straight. Equities hovered in a trading range
through the summer, before enjoying a post-election rally, while bond yields
fell steadily through October, before bottoming and moving higher in the first
quarter this year.
The economy demonstrated slow but steady and sustainable improvement throughout
the past 10 months. For example, the stimulative effects of the previous tax
cuts and mortgage rate declines faded as expected, and were gradually replaced
with employment and income gains. Headline inflation remained near cycle lows
for much of the period, though a combination of higher oil prices and emerging
corporate pricing power signaled a turning point and an emerging upward trend.
While the handoff from stimulus to sustainability was not exactly smooth, the
evidence was adequate to convince the Federal Reserve Board (the "Fed") that the
downside risks to the expansion were sufficiently reduced to begin raising
short-term interest rates from the 1% low. Over the ensuing months, the Fed
raised the overnight fed funds rate a total of seven times to 2.75% by March 31.
Several headwinds emerged as visible sources of restraint on growth during the
period, and their influence persists today. These include:
- - Higher energy prices: reduces discretionary income and raises operating costs
- - Rising interest rates: raises cost of capital and slows housing
- - Weaker dollar: raises the costs of imports and keeps upward pressure on rates
- - Lower federal deficit: reduction of stimulus to supplement internal economic
strength
In the fixed-income markets, three important trends affected relative
performance and our strategy. The first trend was higher short-term interest
rates and the flattening effect exerted on the shape of the yield curve. The
spread between short and long maturity rates was near an extreme level, so we
implemented a "barbell" maturity structure in our bond portfolios to take
advantage of this possibility. The second factor was a further narrowing in the
credit yield spread between Treasury and Corporate securities, due to signs of
economic strength and improving liquidity. We maintained overweight positions in
corporate bonds for much of the time to take advantage of this relative
outperformance. Finally, the rising risk of higher inflation, combined with
favorable supply/demand factors prompted us to establish an overweight position
in Treasury Inflation-Index Securities, commonly referred to as TIPS. These
strategies proved helpful to our shareholders as longer and shorter-term
securities outperformed the middle of the yield curve, and corporate bonds
outperformed Treasuries.
In the equity markets, oil and commodity price increases dominated stock
performance. Energy stocks were the dominant sector, increasing 44% during the
ten months, followed by utilities (+28%) and materials (+20%), though these last
two sectors have relatively small market capitalizations. Performance in the
larger technology (-3%), health care (-1%), and finance (2%) sectors lagged. The
surge in energy stocks helped the value style outperform growth, while
international stocks significantly outperformed the S&P 500. Also, small-cap
stocks extended their outperformance string versus large-caps.
1
================================================================================
Looking ahead, we remain positive on the outlook for the economy and corporate
profits, but the rate of growth in both is likely to slow closer to historical
averages, due to rising interest rates and more difficult comparisons,
respectively. Economic growth may slow temporarily over the near term, but we
expect real Gross Domestic Product(1) growth rate to match or slightly exceed
the 3.0% average. We believe core inflation may trend moderately higher,
supporting the Fed's plan to raise interest rates gradually in the months ahead,
and the dollar could be under downward pressure.
We believe equities can perform well relative to bonds in the projected
environment, despite the headwinds discussed above, though the sectors with the
strongest returns are likely to be quite different from those of the past ten
months. In the bond markets, we see continuing growth and emerging inflation
pushing bond yields moderately higher. However, with the yield curve relatively
flat and credit yield spreads at narrow levels, relative outperformance in
bonds, like stocks, should come from different sectors in the period ahead.
In closing, we want to take this opportunity to thank you again for investing in
STI Classic Funds. We are continuing efforts to broaden fund offerings and
expand choices, while maintaining our unwavering commitment to the strong,
independent research and consistent investment discipline that has helped make
STI Classic Funds a premier source of value for our clients.
Sincerely,
/s/ DOUGLAS S. PHILLIPS
Douglas S. Phillips, CFA
President and Chief Investment Officer
Trusco Capital Management
(1)The Gross Domestic Product ("GDP") measures the market value of the goods and
services produced by labor and property in the United States.
2
PRIME QUALITY MONEY MARKET FUND
================================================================================
PORTFOLIO MANAGER(S)
- - E. Dean Speer, CPA, CFA
- - Kimberly C. Maichle, CFA
- - Greg Hallman
- --------------------------------------------------------------------------------
INVESTMENT CONCERNS
- --------------------------------------------------------------------------------
AN INVESTMENT IN THE STI CLASSIC PRIME QUALITY MONEY MARKET FUND (THE "FUND") IS
NOT INSURED OR GUARANTEED BY THE FDIC OR ANY OTHER GOVERNMENT AGENCY. ALTHOUGH
THE FUND SEEKS TO PRESERVE THE VALUE OF YOUR INVESTMENT AT $1.00 PER SHARE, IT
IS POSSIBLE TO LOSE MONEY BY INVESTING IN THE FUND.
- --------------------------------------------------------------------------------
MANAGEMENT DISCUSSION & ANALYSIS
- --------------------------------------------------------------------------------
Q: WHAT FACTORS INFLUENCED THE FUND'S PERFORMANCE FOR PERIOD ENDED MARCH 31,
2005?
A: The Fund was positioned for a rising rate environment by over weighting
floating rate assets and maintaining short maturities. The Federal Reserve
has increased interest rates seven times this cycle benefiting the
performance of the Fund.
Q. HOW DO YOU PLAN TO POSITION THE FUND, BASED ON MARKET CONDITIONS?
A: We believe that the Federal Reserve could continue to raise interest rates as
the economy continues to expand and to help guard against a rise in
inflation. We anticipate that the Federal Reserve may continue to transition
monetary policy from an accommodative stance to neutral over the balance of
the year. With this in mind we believe we have structured the portfolio to
benefit from a rising rate policy by the Federal Reserve.
- --------------------------------------------------------------------------------
YIELDS AND MATURITY COMPOSITION
- --------------------------------------------------------------------------------
<Table>
<Caption>
-------------------------------------------------------
YIELDS (as of March 31, 2005) A SHARES L SHARES T SHARES
- ----------------------------------------------------------------------------------------
7 Day Average Yield 1.89% 1.89% 2.09%
- ----------------------------------------------------------------------------------------
7 Day Effective Yield 1.90% 1.90% 2.11%
- ----------------------------------------------------------------------------------------
30 Day Yield 1.83% 1.83% 2.03%
- ----------------------------------------------------------------------------------------
</Table>
PAST PERFORMANCE DOES NOT GUARANTEE FUTURE RESULTS.
The yield quotation more closely reflects the current earnings of the Fund than
the total return.
MATURITY COMPOSITION (as of March 31,2005)(1)
as a percentage of total investments
1 Day 15.0%
2-15 Days 32.8%
16-30 Days 21.3%
31-90 Days 29.7%
91-397 Days 1.2%
(1)PORTFOLIO COMPOSITION IS SUBJECT TO CHANGE
3
TAX-EXEMPT MONEY MARKET FUND
================================================================================
PORTFOLIO MANAGER(S)
- - Robert Bowman, CFA
- --------------------------------------------------------------------------------
INVESTMENT CONCERNS
- --------------------------------------------------------------------------------
AN INVESTMENT IN THE STI CLASSIC TAX-EXEMPT MONEY MARKET FUND (THE "FUND") IS
NOT INSURED OR GUARANTEED BY THE FDIC OR ANY OTHER GOVERNMENT AGENCY. ALTHOUGH
THE FUND SEEKS TO PRESERVE THE VALUE OF YOUR INVESTMENT AT $1.00 PER SHARE, IT
IS POSSIBLE TO LOSE MONEY BY INVESTING IN THE FUND.
Certain shareholders may be subject to the Alternative Minimum Tax (AMT).
Federal income tax rules will apply to any capital gains distributions.
- --------------------------------------------------------------------------------
MANAGEMENT DISCUSSION & ANALYSIS
- --------------------------------------------------------------------------------
Q: WHAT FACTORS INFLUENCED THE FUND'S PERFORMANCE FOR PERIOD ENDED MARCH 31,
2005?
A: We believe we positioned the Fund for a rising rate environment by
overweighting floating rate assets and maintaining shorter maturities. The
Federal Reserve increased interest rates seven times this cycle which was a
benefit to the performance of the Fund.
Q: HOW DO YOU PLAN TO POSITION THE FUND, BASED ON MARKET CONDITIONS?
A: We believe the Federal Reserve could potentially raise interest rates at the
upcoming meeting as the economy continues to expand and to help guard against
a rise in inflation. We do anticipate the Federal Reserve may continue to
transition monetary policy from an accommodative stance to neutral over the
balance of the year. With this in mind we feel we structured the portfolio to
benefit from a rising rate policy by the Federal Reserve.
- --------------------------------------------------------------------------------
YIELDS AND MATURITY COMPOSITION
- --------------------------------------------------------------------------------
<Table>
<Caption>
------------------------------------
YIELDS (as of March 31, 2005) A SHARES T SHARES
- ---------------------------------------------------------------------
7 Day Average Yield 1.40% 1.55%
- ---------------------------------------------------------------------
7 Day Effective Yield 1.40% 1.56%
- ---------------------------------------------------------------------
30 Day Yield 1.23% 1.38%
- ---------------------------------------------------------------------
</Table>
PAST PERFORMANCE DOES NOT GUARANTEE FUTURE RESULTS.
The yield quotation more closely reflects the current earnings of the Fund than
the total return.
MATURITY COMPOSITION (as of March 31,2005)(1)
as a percentage of total investments
1 Day 5.9%
2-15 Days 81.6%
31-90 Days 2.7%
91-397 Days 9.8%
(1)PORTFOLIO COMPOSITION IS SUBJECT TO CHANGE
4
U.S. GOVERNMENT SECURITIES MONEY MARKET FUND
================================================================================
PORTFOLIO MANAGER(S)
- - Robert Bowman, CFA
- --------------------------------------------------------------------------------
INVESTMENT CONCERNS
- --------------------------------------------------------------------------------
AN INVESTMENT IN THE STI CLASSIC U.S. GOVERNMENT SECURITIES MONEY MARKET FUND
(THE "FUND") IS NOT INSURED OR GUARANTEED BY THE FDIC OR ANY OTHER GOVERNMENT
AGENCY. ALTHOUGH THE FUND SEEKS TO PRESERVE THE VALUE OF YOUR INVESTMENT AT
$1.00 PER SHARE, IT IS POSSIBLE TO LOSE MONEY BY INVESTING IN THE FUND.
U.S. GOVERNMENT GUARANTEES APPLY ONLY TO THE UNDERLYING SECURITIES OF THE FUND'S
PORTFOLIO AND NOT THE FUND'S SHARES.
- --------------------------------------------------------------------------------
MANAGEMENT DISCUSSION & ANALYSIS
- --------------------------------------------------------------------------------
Q: WHAT FACTORS INFLUENCED THE FUND'S PERFORMANCE FOR PERIOD ENDED MARCH 31,
2005?
A: The Fund was positioned for a rising rate environment by overweighting
floating rate assets and maintaining short maturities. The Federal Reserve
has increased interest rates seven times this cycle benefiting the
performance of the Fund.
Q: HOW DO YOU PLAN TO POSITION THE FUND, BASED ON MARKET CONDITIONS?
A: Our outlook is that the Federal Reserve will raise interest rates at the
upcoming meeting as the economy continues to expand and to guard against a
rise in inflation. We do expect the Federal Reserve to continue to transition
monetary policy from an accommodative stance to neutral over the balance of
the year. With this in mind the portfolio has been structured to benefit from
a rising rate policy by the Federal Reserve.
- --------------------------------------------------------------------------------
YIELDS AND MATURITY COMPOSITION
- --------------------------------------------------------------------------------
<Table>
<Caption>
YIELDS (AS OF MARCH 31, 2005) A SHARES T SHARES
- ---------------------------------------------------------------------
7 Day Average Yield 1.81% 1.98%
- ---------------------------------------------------------------------
7 Day Effective Yield 1.83% 2.00%
- ---------------------------------------------------------------------
30 Day Yield 1.73% 1.90%
- ---------------------------------------------------------------------
</Table>
PAST PERFORMANCE DOES NOT GUARANTEE FUTURE RESULTS.
The yield quotation more closely reflects the current earnings of the Fund than
the total return.
MATURITY COMPOSITION (as of March 31, 2005)(1)
AS A PERCENTAGE OF TOTAL INVESTMENTS
1 Day 19.8%
2-15 Days 18.8%
16-30 Days 25.3%
31-90 Days 26.1%
91-397 Days 10.0%
(1)PORTFOLIO COMPOSITION IS SUBJECT TO CHANGE
5
U.S. TREASURY MONEY MARKET FUND
================================================================================
PORTFOLIO MANAGER(S)
- - E. Dean Speer, CPA, CFA
- - Kimberly C. Maichle, CFA
- - Greg Hallman
- --------------------------------------------------------------------------------
INVESTMENT CONCERNS
- --------------------------------------------------------------------------------
AN INVESTMENT IN THE STI CLASSIC U.S. TREASURY MONEY MARKET FUND (THE "FUND") IS
NOT INSURED OR GUARANTEED BY THE FDIC OR ANY OTHER GOVERNMENT AGENCY. ALTHOUGH
THE FUND SEEKS TO PRESERVE THE VALUE OF YOUR INVESTMENT AT $1.00 PER SHARE, IT
IS POSSIBLE TO LOSE MONEY BY INVESTING IN THE FUND.
U.S. GOVERNMENT GUARANTEES APPLY ONLY TO THE UNDERLYING SECURITIES OF THE FUND'S
PORTFOLIO AND NOT THE FUND'S SHARES.
- --------------------------------------------------------------------------------
MANAGEMENT DISCUSSION & ANALYSIS
- --------------------------------------------------------------------------------
Q: WHAT FACTORS INFLUENCED THE FUND'S PERFORMANCE FOR PERIOD ENDED MARCH 31,
2005?
A: We positioned for a rising rate environment by maintaining short a maturity.
During the reporting period the Federal Reserve increased interest rates
seven times, these increases benefitted the Funds overall performance for the
period.
Q: HOW DO YOU PLAN TO POSITION THE FUND, BASED ON MARKET CONDITIONS?
A: We anticipate that the Federal Reserve could potentially raise interest rates
at the upcoming meeting as the economy continues to expand and to guard
against a rise in inflation. We estimate that the Federal Reserve could
continue to transition monetary policy from an accommodative stance to
neutral over the balance of the year. In our opinion, the portfolio has been
structured to benefit from a rising rate policy by the Federal Reserve.
- --------------------------------------------------------------------------------
YIELDS AND MATURITY COMPOSITION
- --------------------------------------------------------------------------------
<Table>
<Caption>
------------------------------------
YIELDS (as of March 31, 2005) A SHARES T SHARES
- ---------------------------------------------------------------------
7 Day Average Yield 1.76% 1.90%
- ---------------------------------------------------------------------
7 Day Effective Yield 1.77% 1.92%
- ---------------------------------------------------------------------
30 Day Yield 1.70% 1.84%
- ---------------------------------------------------------------------
</Table>
PAST PERFORMANCE DOES NOT GUARANTEE FUTURE RESULTS.
The yield quotation more closely reflects the current earnings of the Fund than
the total return.
MATURITY COMPOSITION (as of March 31,2005)(1)
as a percentage of total investments
1 Day 51.0%
2-15 Days 28.4%
16-30 Days 7.3%
31-90 Days 5.9%
91-397 Days 7.4%
(1)PORTFOLIO COMPOSITION IS SUBJECT TO CHANGE
6
- --------------------------------------------------------------------------------
VIRGINIA TAX-FREE MONEY MARKET FUND
- --------------------------------------------------------------------------------
PORTFOLIO MANAGER(S)
- - Robert Bowman, CFA
- --------------------------------------------------------------------------------
INVESTMENT CONCERNS
- --------------------------------------------------------------------------------
AN INVESTMENT IN THE STI CLASSIC VIRGINIA TAX-FREE MONEY MARKET FUND (THE
"FUND") IS NOT INSURED OR GUARANTEED BY THE FDIC OR ANY OTHER GOVERNMENT AGENCY.
ALTHOUGH THE FUND SEEKS TO PRESERVE THE VALUE OF YOUR INVESTMENT AT $1.00 PER
SHARE, IT IS POSSIBLE TO LOSE MONEY BY INVESTING IN THE FUND.
THE GEOGRAPHICAL CONCENTRATION OF PORTFOLIO HOLDINGS IN THIS FUND MAY INVOLVE
INCREASED RISK.
CERTAIN SHAREHOLDERS MAY BE SUBJECT TO THE ALTERNATIVE MINIMUM
TAX (AMT). FEDERAL INCOME TAX RULES WILL APPLY TO ANY CAPITAL GAINS
DISTRIBUTIONS.
- --------------------------------------------------------------------------------
MANAGEMENT DISCUSSION & ANALYSIS
- --------------------------------------------------------------------------------
Q: WHAT FACTORS INFLUENCED THE FUND'S PERFORMANCE FOR PERIOD ENDED MARCH 31,
2005?
A: The Fund was positioned for a rising rate environment by overweighting
floating rate assets and maintaining short maturities. The Federal Reserve
has increased interest rates seven times this cycle benefiting the
performance of the Fund.
Q: HOW DO YOU PLAN TO POSITION THE FUND, BASED ON MARKET CONDITIONS?
A: Our outlook is that the Federal Reserve will raise interest rates at the
upcoming meeting as the economy continues to expand and to guard against a
rise in inflation. We do expect the Federal Reserve to continue to transition
monetary policy from an accommodative stance to neutral over the balance of
the year. Therefore, we believe we have structured the portfolio to benefit
from a rising rate policy by the Federal Reserve.
- --------------------------------------------------------------------------------
YIELDS AND MATURITY COMPOSITION
- --------------------------------------------------------------------------------
<Table>
<Caption>
-----------------------------------
YIELDS (as of March 31, 2005) A SHARES T SHARES
- ---------------------------------------------------------------------
7 Day Average Yield 1.39% 1.59%
- ---------------------------------------------------------------------
7 Day Effective Yield 1.40% 1.61%
- ---------------------------------------------------------------------
30 Day Yield 1.22% 1.43%
- ---------------------------------------------------------------------
</Table>
PAST PERFORMANCE DOES NOT GUARANTEE FUTURE RESULTS.
The yield quotation more closely reflects the current earnings of the Fund than
the total return.
MATURITY COMPOSITION (as of March 31,2005)(1)
as a percentage of total investments
1 Day 3.7%
2-15 Days 96.0%
91-397 Days 0.3%
(1)PORTFOLIO COMPOSITION IS SUBJECT TO CHANGE
7
(This page intentionally left blank.)
8
INVESTMENT ADVISER:
TRUSCO CAPITAL MANAGEMENT, INC.
This information must be preceded or accompanied by
a current prospectus for each Fund described.
An investor should consider the Fund's investment
objectives, risks, charges and expenses carefully before
investing or sending money. This and other important
information about STI Classic Funds can be found
in the Fund's prospectus. For additional information
please call 1-800-428-6970, option 1, or by visiting
our Website at www.sticlassicfunds.com. Please read
the prospectus carefully before investing.
DISTRIBUTOR:
BISYS FUND SERVICES LP
-----------------------------------------------------------
Not FDIC Insured - No Bank Guarantee - May Lose Value
-----------------------------------------------------------
[STI CLASSIC FUNDS LOGO]
STI-AR-MM 0305
06/05
SCHEDULE OF PORTFOLIO INVESTMENTS
STI CLASSIC FUNDS March 31, 2005 (Amounts in thousands, except shares)
PRIME QUALITY MONEY MARKET FUND
<Table>
<Caption>
- ---------------------------------------------------------
Principal
Amount Value
- ---------------------------------------------------------
CERTIFICATES OF DEPOSIT (25.7%)
BANKS (18.5%)
ABN AMRO Bank N.V.,
2.620%, 04/21/05 $ 25,000 $ 25,000
Barclays Bank PLC,
2.810%, 05/02/05 50,000 50,000
Barclays Bank PLC,
2.730%, 05/11/05 40,000 40,000
BNP Paribas,
2.768%, 08/23/05 (b) 60,000 59,991
BNP Paribas,
2.605%, 10/03/05 (b) 65,000 64,986
Branch Banking & Trust Co.,
2.695%, 04/19/05 (e) 75,000 75,000
Canadian Imperial Bank of
Commerce,
2.800%, 04/29/05 (b) 70,000 69,999
Canadian Imperial Bank of
Commerce,
2.790%, 05/31/05 (b) 50,000 49,998
Credit Lyonnais,
2.646%, 04/04/05 (b) 100,000 100,000
Credit Suisse First Boston LLC,
2.520%, 04/05/05 (b) 50,000 50,000
Credit Suisse First Boston LLC,
2.814%, 11/18/05 (b) 40,000 40,000
Deutsche Bank AG,
2.760%, 05/23/05 50,000 50,001
First Tennessee Bank,
2.150%, 04/06/05 50,000 49,997
HSBC Bank PLC,
2.815%, 05/24/05 25,000 24,999
Lloyds TSB Group PLC,
2.500%, 05/31/05 50,000 50,000
Marshall & Ilsley Corp.,
2.960%, 06/17/05 50,000 50,001
Marshall & Ilsley Corp.,
3.020%, 06/29/05 30,000 30,000
Toronto-Dominion Bank (The),
2.510%, 04/04/05 100,000 100,000
----------
979,972
----------
DIVERSIFIED FINANCIAL SERVICES (7.2%)
Dresdner Bank AG,
2.570%, 04/07/05 50,000 50,000
Greenwich Capital Holdings,
Inc.,
2.650%, 10/17/05 (b) 25,000 24,998
</Table>
<Table>
<Caption>
- ---------------------------------------------------------
Principal
Amount Value
- ---------------------------------------------------------
DIVERSIFIED FINANCIAL SERVICES--CONTINUED
Greenwich Capital Holdings,
Inc.,
2.680%, 11/29/05 (b) $ 50,000 $ 50,000
HBOS Treasury Services,
2.705%, 05/03/05 75,000 75,000
Liquid Funding Ltd.,
2.770%, 10/14/05 (b) (d) 30,000 29,998
Morgan Stanley,
2.760%, 12/13/05 (b) 30,000 30,000
Royal Bank of Scotland,
2.810%, 05/03/05 22,000 22,000
Societe Generale,
2.550%, 04/11/05 100,000 100,001
----------
381,997
----------
Total Certificates of Deposit
(Cost $1,361,969) 1,361,969
----------
COMMERCIAL PAPER (32.1%)
AGRICULTURE (0.7%)
Cargill, Inc.,
2.744%, 04/05/05 (c) (d) 38,093 38,081
----------
BANKS (7.2%)
Australia & New Zealand Banking
Group Ltd. Delaware,
2.827%, 05/03/05 (c) 5,300 5,287
Australia & New Zealand Banking
Group Ltd. Delaware,
2.718%, 05/09/05 (c) (d) 50,000 49,858
Credit Suisse First Boston USA,
Inc.,
2.881%, 06/07/05 (c) (d) 35,000 34,814
DnB Nor Bank ASA,
2.850%, 04/01/05 (c) 100,000 99,999
Northern Rock PLC,
3.001%, 06/14/05 (c) (d) 10,500 10,436
Northern Rock PLC,
3.110%, 07/18/05 (c) (d) 34,750 34,429
Spintab AB,
2.526%, 04/04/05 (c) 50,000 49,990
Spintab AB,
2.541%, 04/05/05 (c) 100,025 99,996
----------
384,809
----------
COSMETICS/PERSONAL CARE (0.5%)
Procter & Gamble Co., (The)
2.972%, 06/14/05 (c) (d) 26,000 25,842
----------
</Table>
9
<Table>
<Caption>
- ---------------------------------------------------------
Principal
Amount Value
- ---------------------------------------------------------
DIVERSIFIED FINANCIAL SERVICES (17.2%)
Atlantis One Funding Corp.,
2.627%, 04/21/05 (c) (d) $ 25,000 $ 24,964
Ciesco LLC,
2.739%, 05/16/05 (c) 50,000 49,830
CIT Group, Inc.,
2.706%, 05/04/05 (c) 50,000 49,877
CIT Group, Inc.,
2.996%, 06/01/05 (c) 6,100 6,069
Compass Securitization LLC,
2.805%, 04/14/05 (c) (d) 1,936 1,934
Compass Securitization LLC,
2.805%, 04/15/05 (c) (d) 5,870 5,864
Compass Securitization LLC,
2.806%, 04/29/05 (c) (d) 9,090 9,070
Compass Securitization LLC,
2.840%, 05/25/05 (c) (d) 45,570 45,377
Dexia Delaware LLC,
2.742%, 05/04/05 (c) 28,700 28,628
Dexia Delaware LLC,
2.829%, 05/23/05 (c) 15,000 14,939
Dorada Finance, Inc.,
2.556%, 04/08/05 (c) (d) 22,445 22,434
Dorada Finance, Inc.,
2.637%, 04/20/05 (c) (d) 25,000 24,965
Dorada Finance, Inc.,
2.857%, 05/23/05 (c) (d) 11,663 11,615
Dresdner US Financial,
2.556%, 04/07/05 (c) 85,000 84,964
General Electric Capital Corp.,
2.923%, 05/24/05 (c) 21,239 21,148
Goldman Sachs Group, Inc.
(The), 2.802%, 04/04/05 (c) 40,000 39,991
ING Funding,
2.717%, 05/10/05 (c) 21,215 21,153
International Lease Finance
Corp., 2.727%, 05/11/05 (c) 20,000 19,940
Mane Funding Corp.,
2.807%, 04/22/05 (c) (d) 25,000 24,959
Mane Funding Corp.,
2.982%, 06/13/05 (c) (d) 50,000 49,700
Mane Funding Corp.,
3.002%, 06/23/05 (c) (d) 25,000 24,828
Mane Funding Corp.,
3.023%, 06/24/05 (c) (d) 25,000 24,825
New Center Asset Trust,
2.803%, 04/07/05 (c) 11,770 11,765
</Table>
<Table>
<Caption>
- ---------------------------------------------------------
Principal
Amount Value
- ---------------------------------------------------------
DIVERSIFIED FINANCIAL SERVICES--CONTINUED
New Center Asset Trust,
2.804%, 04/11/05 (c) $ 2,489 $ 2,487
New Center Asset Trust,
2.805%, 04/13/05 (c) 1,900 1,898
Sigma Finance, Inc.,
2.546%, 04/05/05 (c) (d) 50,000 49,986
Sigma Finance, Inc.,
2.527%, 04/13/05 (c) (d) 25,000 24,979
SLM Corp.,
2.850%, 04/01/05 (c) (d) 75,000 75,000
Societe Generale,
2.762%, 04/01/05 (c) 25,000 25,000
UBS Financial Services, Inc.,
2.791%, 04/01/05 (c) 30,000 30,000
UBS Financial Services, Inc.,
2.870%, 05/13/05 (c) 50,000 49,833
Westpac Capital Corp.,
2.627%, 04/21/05 (c) 25,000 24,964
Westpac Capital Corp.,
2.996%, 06/16/05 (c) 6,000 5,962
----------
908,948
----------
INSURANCE (4.7%)
ING North America Insurance
Corp., 2.668%, 04/27/05 (c) 50,000 49,904
ING North America Insurance
Corp., 2.779%, 05/18/05 (c) 58,750 58,539
ING North America Insurance
Corp., 2.891%, 06/06/05 (c) 25,000 24,868
Swiss RE Financial Services
Corp.,
2.566%, 04/11/05 (c) (d) 50,000 49,966
Swiss RE Financial Services
Corp.,
2.606%, 04/13/05 (c) (d) 25,000 24,978
Swiss RE Financial Services
Corp.,
2.637%, 04/20/05 (c) (d) 25,000 24,965
Swiss RE Financial Services
Corp.,
2.718%, 05/10/05 (c) (d) 15,000 14,956
----------
248,176
----------
MISCELLANEOUS MANUFACTURER (0.2%)
Illinois Tool Works, Inc.,
3.020%, 06/20/05 (c) 13,250 13,162
----------
</Table>
10
SCHEDULE OF PORTFOLIO INVESTMENTS
STI CLASSIC FUNDS March 31, 2005 (Amounts in thousands, except shares)
PRIME QUALITY MONEY MARKET FUND -- CONTINUED
<Table>
<Caption>
- ---------------------------------------------------------
Principal
Amount Value
- ---------------------------------------------------------
OIL & GAS (1.6%)
Shell Finance UK PLC,
2.921%, 06/10/05 (c) $ 47,250 $ 46,984
Total Capital,
2.850%, 04/01/05 (c) (d) 36,373 36,373
----------
83,357
----------
Total Commercial Paper
(Cost $1,702,375) 1,702,375
----------
CORPORATE BONDS (38.3%)
BANKS (7.7%)
Bank of America Corp.,
7.875%, 05/16/05 7,435 7,491
Bank of Ireland,
2.719%, 04/11/05 (b) 21,000 21,000
Bank of New York Co., Inc.
(The), 2.870%, 05/27/08 (b)
(d) 25,000 25,000
DEPFA Bank PLC,
2.990%, 12/15/05 (b) (d) 125,000 125,000
National City Bank,
2.790%, 12/29/05 (b) 10,000 9,998
Northern Rock PLC,
3.000%, 12/09/08 (b) (d) 101,500 101,512
Norwest Corp., Ser F,
6.500%, 06/01/05 2,775 2,795
Wachovia Corp.,
7.450%, 07/15/05 7,721 7,828
Wells Fargo & Co.,
2.870%, 09/14/05 (b) 51,000 51,000
Wells Fargo & Co.,
2.780%, 07/15/09 (b) (d) 50,000 50,000
Wells Fargo & Co., Ser C,
2.766%, 10/08/08 (b) 10,000 10,000
----------
411,624
----------
COMPUTERS (0.5%)
IBM Corp.,
2.725%, 03/08/06, Callable
05/08/05 @ 100 (b) (d) 25,000 25,002
----------
DIVERSIFIED FINANCIAL SERVICES (24.9%)
American Express Bank FSB,
2.810%, 04/29/05 (b) 25,000 25,000
American Express Credit Corp.,
Ser B, 2.826%, 03/05/08 (b) 90,000 90,000
AT&T Capital Corp., Ser F,
6.600%, 05/15/05 11,647 11,710
Bear Stearns & Co., Inc.,
2.860%, 10/28/05 (b) 125,000 125,001
Bear Stearns & Co., Inc., Ser
B,
3.125%, 05/23/05 (b) 5,100 5,107
</Table>
<Table>
<Caption>
- ---------------------------------------------------------
Principal
Amount Value
- ---------------------------------------------------------
DIVERSIFIED FINANCIAL SERVICES--CONTINUED
Beta Finance, Inc.,
2.687%, 05/18/05 (b) (d) $122,000 $ 121,996
BMW US Capital LLC,
4.231%, 06/07/05 100,000 100,362
Capital One Auto Finance Trust,
Ser 2004-B,
2.800%, 10/17/05 (b) 10,407 10,407
CIT Group, Inc.,
3.160%, 07/29/05 (b) 7,500 7,510
CIT Group, Inc.,
7.625%, 08/16/05 23,117 23,518
Dorada Finance, Inc.,
2.870%, 07/15/05 (b) (d) 50,000 50,007
General Electric Capital Corp.,
2.860%, 07/09/07 (b) 69,000 69,000
General Electric Capital Corp.,
Ser A, 7.500%, 05/15/05 2,000 2,012
General Electric Capital Corp.,
Ser A, 2.474%, 06/28/55 (b) 5,760 5,701
General Electric Capital Corp.,
Ser A, 2.474%, 06/30/55 (b) 2,250 2,227
Goldman Sachs Group, Inc.
(The), Ser 2, 2.800%,
08/14/09 (b) (d) 100,000 100,000
Heller Financial, Inc.,
8.000%, 06/15/05 7,142 7,224
Household Finance Corp.,
2.810%, 10/25/05 (b) 50,000 50,000
Household Finance Corp.,
2.810%, 10/28/05 (b) 50,000 49,999
Lehman Brothers Holdings, Inc.,
Ser G, 3.006%, 04/05/05 (b) 10,000 10,000
Liberty Lights US Capital,
2.655%, 02/01/06 (b) (d) 50,000 50,000
Liberty Lights US Capital,
2.711%, 02/07/06 (b) (d) 25,000 25,000
Liquid Funding Ltd.,
2.746%, 11/07/05 (b) (d) 115,000 114,989
Merrill Lynch & Co., Inc., Ser
1, 2.720%, 02/03/09 (b) 30,000 30,000
Morgan Stanley,
2.810%, 08/15/05 (b) 75,000 75,000
Morgan Stanley,
2.865%, 08/13/10 (b) 48,500 48,500
Norwest Financial, Inc.,
7.600%, 05/03/05 3,700 3,719
Sigma Finance, Inc.,
2.885%, 08/05/05 (b) (d) 50,000 50,012
</Table>
11
<Table>
<Caption>
- ---------------------------------------------------------
Principal
Amount Value
- ---------------------------------------------------------
DIVERSIFIED FINANCIAL SERVICES--CONTINUED
Sigma Finance, Inc.,
2.760%, 10/11/05 (b) (d) $ 25,000 $ 24,997
Toyota Motor Credit Corp.,
2.820%, 09/09/05 (b) 39,000 39,019
----------
1,328,017
----------
ELECTRIC (0.8%)
Georgia Power Co.,
2.760%, 04/15/05 (b) 40,000 40,002
----------
INSURANCE (0.7%)
Jefferson-Pilot Capital Corp.,
2.860%, 02/17/11 (b) (d) 35,000 35,000
----------
PHARMACEUTICALS (1.4%)
Pfizer, Inc.,
2.706%, 10/07/05 (b) (d) 75,000 75,000
----------
TELECOMMUNICATIONS (2.3%)
BellSouth Corp.,
4.119%, 04/26/05 (b) (d) 125,000 125,212
----------
Total Corporate Bonds
(Cost $2,039,857) 2,039,857
----------
MASTER NOTES (3.4%)
BANKS (3.4%)
Bank of America,
2.945%, 09/14/05 (b) 180,000 180,000
----------
Total Master Notes
(Cost $180,000) 180,000
----------
REPURCHASE AGREEMENTS (1.2%)
Bear Stearns & Co., Inc.,
2.830%, dated 03/31/05, to be
repurchased on 04/01/05,
repurchase price $9,743,479
(collateralized by U.S.
Government Agencies, DN, due
04/01/35; total market value
$9,937,887) 9,743 9,743
BNP Paribas, 2.820%, dated
03/31/05, to be repurchased
on 04/01/05, repurchase price
$10,908,437 (collateralized
by U.S. Government Agencies,
3.875%, due 02/15/10; total
market value $11,126,506) 10,907 10,907
</Table>
<Table>
<Caption>
- ---------------------------------------------------------
Principal
Amount Value
- ---------------------------------------------------------
REPURCHASE AGREEMENTS--CONTINUED
Lehman Brothers, Inc., 2.840%,
dated 03/31/05, to be
repurchased on 04/01/05,
repurchase price $10,669,898
(collateralized by U.S.
Government Agencies,
5.000%, due 02/01/34; total
market value $10,881,820) $ 10,669 $ 10,669
Merrill Lynch & Co., Inc.,
2.820%, dated 03/31/05, to be
repurchased on 04/01/05,
repurchase price $10,227,290
(collateralized by U.S.
Government Agencies,
5.500%, due
03/01/25-03/01/34; total
market value $10,431,155) 10,227 10,227
Morgan Stanley, 2.870%, dated
03/31/05, to be repurchased
on 04/01/05, repurchase price
$10,583,042 (collateralized
by U.S. Government Agencies,
3.380%, due 04/01/41; total
market value $10,824,017) 10,582 10,582
UBS Warburg LLC, 2.840%, dated
03/31/05, to be repurchased
on 04/01/05, repurchase price
$9,108,959 (collateralized by
U.S. Government Agencies,
4.500%, due 06/15/30; total
market value $9,290,754) 9,108 9,108
----------
Total Repurchase Agreements
(Cost $61,236) 61,236
----------
Total Investments
(Cost $5,345,437)(a) -- 100.7% 5,345,437
Liabilities in excess of other
assets -- (0.7)% (36,944)
----------
Net Assets -- 100.0% $5,308,493
==========
</Table>
See notes to schedules of portfolio investments and notes to financial
statements.
12
SCHEDULE OF PORTFOLIO INVESTMENTS
STI CLASSIC FUNDS March 31, 2005 (Amounts in thousands, except shares)
TAX-EXEMPT MONEY MARKET FUND
<Table>
<Caption>
- ---------------------------------------------------------
Shares or
Principal
Amount Value
- ---------------------------------------------------------
MUNICIPAL BONDS (99.7%)
ALABAMA (3.7%)
Birmingham Special Care
Facilities Financing
Authority, Ser PT 510, RB,
2.370%, 11/15/20, LOC:
Merrill Lynch & Co., Inc.
(b) $ 14,080 $ 14,080
Birmingham-Carraway Special
Care Facilities Financing
Authority, Carraway
Methodist Health Project,
Ser A, RB, 2.320%, 08/15/28,
LOC: AmSouth Bank (b) 9,695 9,695
Cherokee Industrial
Development Board, The BOC
Group Project, RB, 2.290%,
04/01/08, LOC: Wachovia Bank
of Georgia (b) 3,500 3,500
Covington County, GO Warrants,
2.220%, 06/01/32, LOC:
SouthTrust Bank N.A. (b) 2,355 2,355
Daphne-Villa Mercy Special
Care Facilities Financing
Authority, Mercy Medical
Project, RB, 2.280%,
12/01/27, LOC: AmSouth Bank
(b) 12,800 12,800
Marion Educational Building
Authority, Judson College
Project, RB, 2.170%,
01/01/33, LOC: SouthTrust
Bank N.A. (b) 6,620 6,620
----------
49,050
----------
ARIZONA (0.3%)
Agricultural Improvement &
Power District, Salt River
Project, Ser SG-10, RB,
2.320%, 01/01/30 (b) 3,700 3,700
----------
ARKANSAS (0.2%)
Springdale Sales & Use Tax,
RB, 3.000%, 07/01/05, MBIA 2,305 2,313
----------
</Table>
<Table>
<Caption>
- ---------------------------------------------------------
Shares or
Principal
Amount Value
- ---------------------------------------------------------
CALIFORNIA (0.6%)
CSUCI Financing Authority,
Rental Housing Project, RB,
1.600%, 08/01/31, LOC:
Citibank N.A. (b) $ 6,100 $ 6,100
Sacramento City Financing
Authority, Ser PA 835, RB,
2.300%, 12/01/08, AMBAC (b) 1,900 1,900
----------
8,000
----------
COLORADO (0.4%)
Colorado Housing & Finance
Authority, St. Moritz
Project, Ser H, RB, 2.260%,
10/15/16, FNMA (b) 5,515 5,515
----------
CONNECTICUT (2.4%)
Connecticut State Health &
Educational Facilities
Authority, Ser PT-905, RB,
2.200%, 08/12/19, Callable
05/10/05 @ 101, FGIC (b) 19,125 19,125
Connecticut State Special
Obligation Rate Reduction,
Ser A, RB, 3.000%, 06/30/05 12,975 13,019
----------
32,144
----------
DISTRICT OF COLUMBIA (1.2%)
District of Columbia, Planned
Parenthood Project, RB,
2.300%, 12/01/29, LOC: Bank
of America N.A. (b) 6,345 6,345
District of Columbia, The
Phillips Collection Issue,
RB, 2.300%, 08/01/33, LOC:
Bank of America N.A. (b) 6,000 6,000
District of Columbia, Thurgood
Marshall Center Trust, RB,
2.270%, 11/01/27, LOC:
Branch Banking & Trust Co.
(b) 3,470 3,470
----------
15,815
----------
</Table>
13
<Table>
<Caption>
- ---------------------------------------------------------
Shares or
Principal
Amount Value
- ---------------------------------------------------------
FLORIDA (6.6%)
De Soto County Industrial
Development, Tremron
Project, RB, 2.370%,
11/01/15, LOC: Branch
Banking & Trust Co. (b) $ 4,000 $ 4,000
Florida Housing Finance
Agency, Bainbridge Project,
Ser M, RB, AMT, 2.300%,
12/01/25, FNMA (b) 6,270 6,270
Florida Housing Finance Corp.,
Brentwood Club Apartments
Project, Ser A-1, RB, AMT,
2.300%, 01/15/35, FNMA (b) 10,400 10,400
Florida Housing Finance Corp.,
St. Andrews Pointe
Apartments Project, Ser E-1,
RB, AMT, 2.300%, 06/15/36,
FNMA (b) 8,615 8,615
Florida Housing Finance Corp.,
Stone Harbor Apartments
Project, Ser K, RB, AMT,
2.320%, 07/15/36, LOC:
AmSouth Bank (b) 5,560 5,560
Hillsborough County Industrial
Development Authority,
Independent Day School
Project, RB, 2.350%,
09/01/26, LOC: Bank of
America N.A. (b) 4,300 4,300
Jacksonville Economic
Development Commission,
Goodwill Industries of North
Florida Project, RB, 2.170%,
07/01/23, LOC: SouthTrust
Bank N.A. (b) 3,100 3,100
Lee County Housing Finance
Authority, Ser PT-611,
1.650%, 03/01/34 (b) 1,290 1,290
Manatee County St. Stephens
Upper School Project, RB,
2.350%, 11/01/25, LOC: Bank
of America N.A. (b) 3,300 3,300
Miami-Dade County Industrial
Development Authority,
Gulliver Schools Project,
RB, 2.350%, 09/01/29, LOC:
Bank of America N.A. (b) 7,150 7,150
</Table>
<Table>
<Caption>
- ---------------------------------------------------------
Shares or
Principal
Amount Value
- ---------------------------------------------------------
FLORIDA--CONTINUED
Orange County Housing Finance
Authority, Charleston Club
Apartments Project, Ser A,
RB, AMT, 2.300%, 07/15/34,
FNMA (b) $ 7,000 $ 7,000
Santa Rosa County Health
Facilities Authority,
Baptist Hospital, Inc.
Project, RB, 2.300%,
10/01/21, LOC: Bank of
America N.A. (b) 8,100 8,100
Sarasota County Health
Facility Authority, Bay
Village Project, RB, 2.350%,
12/01/23, LOC: Bank of
America N.A. (b) 4,200 4,200
Tampa Bay Water Utility
System, Regional Water
Supply Authority, RB, AMT,
2.350%, 10/01/31, LOC: Bank
of America N.A. (b) 9,200 9,200
University of North Florida
Foundation, Inc., Parking
Systems Project, RB, 2.300%,
05/01/28, LOC: First Union
National Bank (b) 5,500 5,500
----------
87,985
----------
GEORGIA (1.8%)
Atlanta Airport, Ser 313, RB,
AMT, 2.380%, 01/01/18, FGIC
(b) 3,335 3,335
Cobb County Development
Authority, Kennesaw State
University Project, RB,
2.290%, 11/01/18, AMBAC (b) 5,030 5,030
Houston County Development
Authority, Clean Control
Corp. Project, RB, AMT,
2.370%, 06/01/20, LOC:
Branch Banking & Trust Co.
(b) 2,800 2,800
Metropolitan Atlanta Rapid
Transit Authority, Ser
SG-57, RB, 2.320%, 07/01/20,
AMBAC (b) 5,000 5,000
</Table>
14
SCHEDULE OF PORTFOLIO INVESTMENTS
STI CLASSIC FUNDS March 31, 2005 (Amounts in thousands, except shares)
TAX-EXEMPT MONEY MARKET FUND -- CONTINUED
<Table>
<Caption>
- ---------------------------------------------------------
Shares or
Principal
Amount Value
- ---------------------------------------------------------
GEORGIA--CONTINUED
Savannah Economic Development
Authority, Consolidated
Utilites, Inc. Project, RB,
AMT, 2.370%, 12/01/19, LOC:
Branch Banking & Trust Co.
(b) $ 2,190 $ 2,190
Savannah Economic Development
Authority, Kennickell
Printing Co. Project, RB,
AMT, 2.370%, 09/01/11, LOC:
Branch Banking & Trust Co.
(b) 1,620 1,620
Toombs County Hospital
Authority, Meadows Regional
Medical Center Project, RB,
2.270%, 12/01/17, LOC:
Branch Banking & Trust Co.
(b) 4,700 4,700
----------
24,675
----------
HAWAII (0.4%)
Hawaii State Airport System,
Ser PA-1110, RB, AMT,
1.650%, 07/01/09, FGIC (b) 4,995 4,995
----------
IDAHO (0.1%)
Idaho Housing & Finance
Assoc., Ser PA-115, 2.370%,
01/01/27, LOC: Merrill Lynch
Capital Services (b) 821 821
----------
ILLINOIS (13.4%)
Bloomington-Normal Airport
Authority, GO, 2.350%,
01/01/12, LOC: Bank One N.A.
(b) 700 700
Chicago Airport Special
Facilities, Centerpoint
O'Hare LLC Project, RB, AMT,
2.350%, 09/01/32, LOC: Bank
One N.A. (b) 2,800 2,800
Chicago Waterworks, Merlots
Project, Ser A 02, GO,
2.275%, 11/01/30 (b) 14,940 14,940
</Table>
<Table>
<Caption>
- ---------------------------------------------------------
Shares or
Principal
Amount Value
- ---------------------------------------------------------
ILLINOIS--CONTINUED
Chicago, Merlots Project, Ser
WWW, GO, 2.350%, 01/01/22,
AMBAC (b) $ 11,000 $ 11,000
Illinois Development Finance
Authority, Ser PT 515, RB,
2.370%, 06/01/06, Callable
04/25/05 @ 101, LOC: Danske
Bank A/S (b) 28,000 28,000
Illinois Educational
Facilities Authority,
Chicago Children's Museum
Project, RB, 2.300%,
02/01/28, LOC: Bank One N.A.
(b) 1,600 1,600
Illinois Educational
Facilities Authority, Museum
of Science & Industry
Project, RB, 2.300%,
11/01/15, LOC: Northern
Trust Co. (b) 4,500 4,500
Illinois Finance Authority,
Alexian Brothers Health
Project, RB, 2.120%,
04/01/35, LOC: Bank One N.A.
(b) 46,000 46,000
Illinois Health Facilities
Authority, Advocate Health
Care Project, Ser B, RB,
2.340%, 08/15/22 (b) 2,100 2,100
Illinois Health Facilities
Authority, Proctor Hospital
Project, RB, 2.300%,
01/01/12, LOC: Bank One N.A.
(b) 3,400 3,400
Illinois Housing Development
Authority, Illinois Center
Apartments Project, RB,
2.280%, 01/01/08 (b) 20,935 20,935
Illinois State Merlots
Project, Ser B04, GO,
2.350%, 12/01/24, Callable
12/01/12 @ 100, FSA (b) 7,230 7,230
</Table>
15
<Table>
<Caption>
- ---------------------------------------------------------
Shares or
Principal
Amount Value
- ---------------------------------------------------------
ILLINOIS--CONTINUED
Lockport Industrial
Development, Panduit Corp.
Project, RB, AMT, 2.380%,
04/01/25, LOC: Fifth Third
Bank (b) $ 2,000 $ 2,000
Macon County Millikin
University Project, RB,
2.300%, 10/01/28, AMBAC (b) 5,850 5,850
Naperville Heritage YMCA
Group, Inc. Project, RB,
2.170%, 12/01/29, LOC: Fifth
Third Bank (b) 7,600 7,600
Regional Transportation
Authority, Ser SG-82,
2.320%, 06/01/25 (b) 17,500 17,500
Savanna Industrial
Development, Metform Corp.
Project, Ser A, RB, AMT,
2.350%, 05/01/14, LOC: Bank
One N.A. (b) 500 500
Savanna Industrial
Development, Metform Corp.
Project, Ser B, RB, AMT,
2.350%, 06/01/09, LOC: Bank
One N.A. (b) 1,400 1,400
Wheeling Industrial
Development, Circuit
Service, Inc. Project, RB,
AMT, 2.450%, 04/01/18, LOC:
Bank One Illinois N.A. (b) 1,600 1,600
----------
179,655
----------
INDIANA (3.4%)
Elkhart County Economic
Development, Holly Park,
Inc. Project, RB, AMT,
2.450%, 02/01/10, LOC: Bank
One Indiana N.A. (b) 1,300 1,300
Fort Wayne Economic
Development, Notre Dame
Technical Project, RB, AMT,
2.350%, 07/01/09, LOC: Bank
One N.A. (b) 1,000 1,000
</Table>
<Table>
<Caption>
- ---------------------------------------------------------
Shares or
Principal
Amount Value
- ---------------------------------------------------------
INDIANA--CONTINUED
Indiana Bond Bank, RB, 2.320%,
02/01/22, Callable 02/01/15
@ 100, FGIC (b) $ 5,190 $ 5,190
Indiana Development Finance
Authority, Christel House
Project, RB, 2.170%,
02/01/23, LOC: Fifth Third
Bank (b) 6,620 6,620
Indiana Development Finance
Authority, Culver
Educational Foundation
Project, RB, 2.300%,
01/01/32, LOC: Northern
Trust Co. (b) 12,700 12,700
Indiana Development Finance
Authority, Indiana
Historical Society Project,
RB, 2.300%, 08/01/31, LOC:
Bank One Indiana N.A. (b) 1,200 1,200
Indiana Health Facility
Financing Authority, Clarian
Health Partners, Inc.
Project, Ser B, RB, 2.300%,
02/15/26, LOC: JPMorgan
Chase & Co. (b) 2,000 2,000
La Porte County Economic
Development, Pedcor
Investments-Woodland
Project, RB, AMT, 2.390%,
10/01/29, FHLB (b) 1,200 1,200
Marshall County Economic
Development, Culver
Educational Foundation
Project, RB, 2.300%,
01/01/35, LOC: Bank One N.A.
(b) 8,300 8,300
MSD Warren Township Vision
2005 School Building Corp.,
Merlots Project, Ser A52,
RB, 2.350%, 07/15/20, FGIC
(b) 6,600 6,600
----------
46,110
----------
</Table>
16
SCHEDULE OF PORTFOLIO INVESTMENTS
STI CLASSIC FUNDS March 31, 2005 (Amounts in thousands, except shares)
TAX-EXEMPT MONEY MARKET FUND -- CONTINUED
<Table>
<Caption>
- ---------------------------------------------------------
Shares or
Principal
Amount Value
- ---------------------------------------------------------
IOWA (0.4%)
Iowa Higher Education Loan
Authority, Private
College -- Graceland
Project, RB, 2.350%,
02/01/33, LOC: Bank of
America N.A. (b) $ 3,700 $ 3,700
Sac County Industrial, Evapco,
Inc. Project, RB, AMT,
2.400%, 07/01/16, LOC: Bank
of America N.A. (b) 2,620 2,620
----------
6,320
----------
KANSAS (0.2%)
Sedgwick & Shawnee Counties,
Ser PT 227, GO, 2.370%,
12/01/22, LOC: Merrill Lynch
Capital Services, Inc. (b) 2,165 2,165
----------
KENTUCKY (0.2%)
Campbell County Industrial
Building, Hospital Imaging
Co., Inc. Project, RB,
2.190%, 04/01/20, LOC: Fifth
Third Bank (b) 2,815 2,815
----------
LOUISIANA (1.3%)
Louisiana Public Facilities
Authority, Advance Funding
Notes, Ser C, RB, 3.000%,
10/20/05 3,325 3,348
Louisiana Public Facilities
Authority, Advance Funding
Notes, Ser D, RB, 3.000%,
10/20/05 13,235 13,325
----------
16,673
----------
MARYLAND (1.9%)
Maryland Community Development
Administration, Department
of Housing & Community
Development, People's
Resource Center, Ser C, RB,
AMT, 2.120%, 09/01/35, LOC:
Lloyds TSB Bank PLC (b) 15,040 15,040
</Table>
<Table>
<Caption>
- ---------------------------------------------------------
Shares or
Principal
Amount Value
- ---------------------------------------------------------
MARYLAND--CONTINUED
Maryland State Economic
Development Corp., YMCA of
Central Maryland, Inc.
Project, RB, 2.270%,
04/01/28, LOC: Branch
Banking & Trust Co. (b) $ 4,450 $ 4,450
Maryland State, Ser PA 816,
GO, 2.300%, 03/01/12, LOC:
Merrill Lynch Capital
Services, Inc. (b) 5,995 5,995
----------
25,485
----------
MASSACHUSETTS (1.3%)
Massachusetts State STARS
Certificates, Ser 2003-25,
GO, 2.300%, 04/01/17, MBIA
(b) 8,000 8,000
Massachusetts State, Ser PT
1390, GO, 2.300%, 03/01/10,
FSA (b) 9,925 9,925
----------
17,925
----------
MICHIGAN (1.9%)
ABN Amro Munitops Certificate
Trust, Ser 2004-2, RB, AMT,
2.390%, 12/20/11, GNMA (b) 9,780 9,780
Detroit Sewer Disposal System,
Second Lien, Ser E, RB,
1.550%, 07/01/31, FGIC (b) 15,000 15,000
Oakland County Economic
Development Corp., Moody
Family Ltd. Project, RB,
AMT, 2.450%, 09/01/12, LOC:
Bank One Michigan (b) 600 600
----------
25,380
----------
</Table>
17
<Table>
<Caption>
- ---------------------------------------------------------
Shares or
Principal
Amount Value
- ---------------------------------------------------------
MISSOURI (0.3%)
Carthage Industrial
Development Authority,
Schreiber Project, RB, AMT,
2.350%, 11/01/10, LOC: First
National Bank (b) $ 3,100 $ 3,100
Missouri State Environmental
Improvement & Energy
Resource Authority,
Utilicorp United, Inc.
Project, RB, AMT, 2.350%,
05/01/28, LOC: Toronto
Dominion Bank (b) 700 700
----------
3,800
----------
MONTANA (0.6%)
Missoula County Economic
Development, Dinny Stranahan
Research Institute Project,
RB, 2.300%, 06/01/20, LOC:
Northern Trust Co. (b) 8,500 8,500
----------
NEVADA (1.1%)
Clark County Airport Sub Lien
Improvement, Ser A-2, RB,
AMT, 2.280%, 07/01/25, LOC:
Westdeutsche Landesbank (b) 3,825 3,825
Nevada State, Ser 344, GO,
2.340%, 05/15/28, Callable
05/15/08 @ 100, FGIC (b) 5,495 5,495
Nevada State, Ser SG 114,
2.320%, 03/01/27 (b) 5,000 5,000
----------
14,320
----------
</Table>
<Table>
<Caption>
- ---------------------------------------------------------
Shares or
Principal
Amount Value
- ---------------------------------------------------------
NEW JERSEY (2.8%)
New Jersey Economic
Development Authority, Ser
PT 1532, RB, 2.300%,
12/15/14, MBIA (b) $ 10,625 $ 10,625
New Jersey Economic
Development Authority, Ser
1533, RB, 2.300%, 06/15/10,
MBIA (b) 16,270 16,270
New Jersey Transportation
Trust Fund Authority, Ser PA
802, RB, 2.300%, 12/15/09,
FSA (b) 10,000 10,000
----------
36,895
----------
NEW YORK (8.1%)
New York City Municipal Water
Finance Authority, Ser PA
454, GO, 2.300%, 07/15/30,
LOC: Merrill Lynch Capital
Services, Inc. (b) 14,500 14,500
New York City Municipal Water
Finance Authority, Ser SGB
27, RB, 2.300%, 06/15/24,
FSA (b) 9,000 9,000
New York City, Ser PT-2203,
GO, 2.310%, 08/01/10, MBIA
(b) 4,970 4,970
New York Local Goverment
Assistance Corp., Ser PT
410, 2.300%, 04/01/10, LOC:
Merrill Lynch Capital
Services, Inc. (b) 14,925 14,925
New York State Dormitory
Authority, Ser PA-781, RB,
2.300%, 05/15/17, Callable
05/15/10 @ 101, FSA (b) 6,655 6,655
New York State Housing Finance
Agency, 900 8th Ave. Housing
Project, Ser A, RB, AMT,
2.310%, 11/01/35, LOC:
Keybank N.A. (b) 15,000 15,000
New York State Thruway
Authority, Ser SG 119, RB,
2.360%, 01/01/27, LOC:
Societe Generale (b) 27,000 27,000
</Table>
18
SCHEDULE OF PORTFOLIO INVESTMENTS
STI CLASSIC FUNDS March 31, 2005 (Amounts in thousands, except shares)
TAX-EXEMPT MONEY MARKET FUND -- CONTINUED
<Table>
<Caption>
- ---------------------------------------------------------
Shares or
Principal
Amount Value
- ---------------------------------------------------------
NEW YORK--CONTINUED
Sales Tax Asset Receivables
Corp., Ser PT-2450, RB,
2.300%, 10/15/25, Callable
10/15/14 @ 100, MBIA (b) $ 15,000 $ 15,000
Southeast Industrial
Development Agency, Unilock
New York, Inc. Project, RB,
AMT, 2.450%, 12/01/12, LOC:
Bank One N.A. (b) 2,000 2,000
----------
109,050
----------
NORTH CAROLINA (5.9%)
Charlotte Airport, Charlotte-
Douglas International
Airport, Ser A, RB, AMT,
2.330%, 07/01/17, MBIA (b) 3,700 3,700
Charlotte Water & Sewer
System, RB, 2.000%,
06/03/05, LOC: Wachovia Bank
N.A. (b) 11,500 11,500
Charlotte Water & Sewer
System, RB, 1.600%,
08/01/34, LOC: Wachovia Bank
N.A. (b) 10,000 10,000
Cleveland County Family YMCA,
Inc. Recreational
Facilities, RB, 2.270%,
08/01/18, LOC: Branch
Banking & Trust Co. (b) 2,400 2,400
Forsyth County Communications
System Project, COP, 2.270%,
10/01/12, LOC: Wachovia Bank
N.A. (b) 10,345 10,345
Guilford County Industrial
Facilities & Pollution
Control Financing, YMCA of
Greensboro, Inc. Project,
RB, 2.270%, 02/01/23, LOC:
Branch Banking & Trust Co.
(b) 4,800 4,800
Guilford County, Ser B, GO,
2.300%, 03/01/25, LOC:
Wachovia Bank N.A. (b) 15,000 15,000
</Table>
<Table>
<Caption>
- ---------------------------------------------------------
Shares or
Principal
Amount Value
- ---------------------------------------------------------
NORTH CAROLINA--CONTINUED
North Carolina Educational
Facilities Finance Agency,
Guilford College Project,
RB, 2.270%, 05/01/24, MBIA
(b) $ 2,000 $ 2,000
North Carolina Medical Care
Commission Health Care
Facilities, Friends Homes
Project, RB, 2.300%,
09/01/33, LOC: Bank of
America N.A. (b) 6,955 6,955
North Carolina Medical Care
Commission Health Care
Facilities, Lutheran
Services for the Aging
Project, RB, 2.290%,
03/01/28, LOC: Branch
Banking & Trust Co. (b) 8,135 8,135
North Carolina Medical Care
Commission, Westcare Health
Systems Obligation Project,
Ser A, RB, 2.270%, 09/01/22,
LOC: Branch Banking & Trust
Co. (b) 4,600 4,600
----------
79,435
----------
OHIO (1.5%)
Ohio State Higher Educational
Facility Commission, Pooled
Financing Project, RB,
2.150%, 09/01/18, LOC: Fifth
Third Bank (b) 3,595 3,595
Rickenbacker Port Authority,
YMCA of Central Ohio
Project, RB, 2.300%,
05/01/22, LOC: Fifth Third
Bank (b) 8,000 8,000
Warren County Health Care
Facilities, Otterbein Homes
Project, Ser A, RB, 2.290%,
07/01/21, LOC: Fifth Third
Bank (b) 7,945 7,945
----------
19,540
----------
OTHER (11.7%)
Eagle Tax-Exempt Trust, Ser
20001001, Cl A, GO, 2.320%,
07/01/15, Callable 07/01/10
@ 100, LOC: Citibank N.A.
(b) 7,025 7,025
</Table>
19
<Table>
<Caption>
- ---------------------------------------------------------
Shares or
Principal
Amount Value
- ---------------------------------------------------------
OTHER--CONTINUED
Eagle Tax-Exempt Trust, Ser
991301, GO, 2.320%,
06/01/25, FSA (b) (d) $ 9,900 $ 9,900
Municipal Securities Pool
Trust Receipts, Ser SG-PG
17, 2.430%, 06/01/34 (b) (d) 29,585 29,585
Municipal Securities Pool
Trust Receipts, Ser SG P-18,
RB, 2.430%, 01/01/35, LOC:
Societe Generale (b) (d) 8,800 8,800
Munimae Trust, Ser PT-616, RB,
AMT, 2.380%, 12/19/05, FHLMC
(b) (d) 5,000 5,000
Puttable Floating Rate Option,
Tax-Exempt Receipts, Ser
PPT-1001, Cl D, 1.820%,
03/01/40 (b) (d) 10,000 10,000
Puttable Floating Rate Option,
Tax-Exempt Receipts, Ser
PPT-1001, Cl I, 2.650%,
04/01/26, (b) (d) 10,000 10,000
Puttable Floating Option,
Tax-Exempt Receipts, Ser
PPT-1003, Cl A, 2.400%,
01/01/32 (b) 19,220 19,220
Puttable Floating Rate Option,
Tax-Exempt Receipts, Ser
PPT-1003, Cl B, 2.380%,
01/01/32 (b) (d) 55,735 55,734
Puttable Floating Rate Option,
Tax-Exempt Receipts, Ser
PPT-36, Cl A, 2.430%,
01/01/27 (b) (d) 2,590 2,590
----------
157,854
----------
PENNSYLVANIA (4.5%)
Allegheny County Hospital
Development Authority, Ser
PT-878, RB, 2.300%,
10/01/19, Callable 05/10/05
@ 101, FGIC (b) 23,965 23,965
Berks County Industrial
Development Authority,
Kutztown University
Foundation Project, RB,
2.290%, 01/01/27, LOC:
Wachovia Bank N.A. (b) 12,700 12,700
</Table>
<Table>
<Caption>
- ---------------------------------------------------------
Shares or
Principal
Amount Value
- ---------------------------------------------------------
PENNSYLVANIA--CONTINUED
Cambria County Industrial
Development Authority,
Cambria Cogen Co. Project,
Ser A-1, RB, AMT, 2.470%,
12/01/28, LOC: Bayerische
Hypo- Und Vereinsbank (b) $ 7,125 $ 7,125
Delaware River Port Authority,
Ser PA 965, RB, 2.310%,
01/01/10, FSA (b) 7,000 7,000
Philadelphia Authority for
Industrial Development,
Chemical Heritage Foundation
Project, RB, 2.290%,
07/01/27, LOC: Wachovia Bank
N.A. (b) 9,225 9,225
----------
60,015
----------
RHODE ISLAND (0.5%)
Rhode Island Health &
Educational Building Corp.,
Ocean State Assisted Living
Project, RB, 2.280%,
07/01/31, LOC: Soverign Bank
FSB (b) 6,050 6,050
----------
SOUTH CAROLINA (4.1%)
Newberry County, Memorial
Hospital Project, RB,
2.290%, 12/01/29, LOC: First
Union National Bank (b) 9,780 9,780
South Carolina Educational
Facilities Authority,
Charleston Southern
University Project, RB,
2.300%, 04/01/28, LOC: Bank
of America N.A. (b) 5,550 5,550
South Carolina Educational
Facilities Authority,
Newberry College Project,
RB, 2.270%, 08/01/22, LOC:
Branch Banking & Trust Co.
(b) 3,775 3,775
South Carolina Jobs-Economic
Development Authority,
Anderson Area YMCA, Inc.
Project, RB, 2.350%,
11/01/24, LOC: Bank of
America N.A. (b) 7,100 7,100
</Table>
20
SCHEDULE OF PORTFOLIO INVESTMENTS
STI CLASSIC FUNDS March 31, 2005 (Amounts in thousands, except shares)
TAX-EXEMPT MONEY MARKET FUND -- CONTINUED
<Table>
<Caption>
- ---------------------------------------------------------
Shares or
Principal
Amount Value
- ---------------------------------------------------------
SOUTH CAROLINA--CONTINUED
South Carolina Jobs-Economic
Development Authority,
Carolina Village, Inc.
Project, RB, 2.270%,
02/01/22, LOC: Branch
Banking & Trust Co. (b) $ 105 $ 105
South Carolina Jobs-Economic
Development Authority, DCS
Diversified Coating Systems
Inc. Project, RB, AMT,
2.230%, 04/01/17, LOC:
Branch Banking & Trust Co.
(b) 2,285 2,285
South Carolina Jobs-Economic
Development Authority,
Sargent Metal Fabricators,
Inc. Project, RB, AMT,
2.370%, 11/01/22, LOC:
Branch Banking & Trust Co.
(b) 2,435 2,435
South Carolina Jobs-Economic
Development Authority, USC
Development Foundation
Project, RB, 2.270%,
12/01/10, LOC: Branch
Banking & Trust Co. (b) 6,000 6,000
South Carolina Jobs-Economic
Development Authority, YMCA
of Beaufort County Project,
RB, 2.270%, 12/01/24, LOC:
Branch Banking & Trust Co.
(b) 3,450 3,450
South Carolina State Housing
Finance & Development
Authority, Ser PT 1272, RB,
2.370%, 12/15/30, FHLMC (b) 10,000 10,000
</Table>
<Table>
<Caption>
- ---------------------------------------------------------
Shares or
Principal
Amount Value
- ---------------------------------------------------------
SOUTH CAROLINA--CONTINUED
University of South Carolina
Development Foundation, RB,
2.130%, 12/01/10, LOC:
Branch Banking & Trust Co.
(b) $ 4,000 $ 4,000
----------
54,480
----------
TENNESSEE (1.7%)
Covington Industrial
Development Board, Charms
Co. Project, RB, AMT,
2.350%, 06/01/27, LOC: Bank
of America N.A. (b) 3,000 3,000
Knox County Industrial
Development Board,
Educational Services of
America Project, RB, 2.270%,
12/01/22, LOC: Branch
Banking & Trust Co. (b) 3,510 3,510
Metropolitan Government,
Nashville & Davidson County
Health & Educational
Facilities Board, Nashville
Christian School Project,
RB, 2.170%, 09/01/23, LOC:
SouthTrust Bank N.A. (b) 1,565 1,565
Tennessee Local Development
Authority, Student Loan
Program, Bond Anticipation
notes, Ser A, RB, 3.000%,
05/31/05 15,000 15,037
----------
23,112
----------
TEXAS (3.8%)
Coastal Bend Health Facilities
Development Corp., Ser B,
RB, 2.280%, 08/15/28, AMBAC
(b) 17,400 17,400
Houston Airport System, Ser SG
149, RB, 2.330%, 07/01/28,
Callable 07/01/10 @ 100, FSA
(b) 17,500 17,500
Houston Higher Education
Finance Corp., Ser SG 139,
RB, 2.320%, 11/15/29,
Callable 11/15/09 @ 101,
LOC: Societe Generale (b) 3,100 3,100
</Table>
21
<Table>
<Caption>
- ---------------------------------------------------------
Shares or
Principal
Amount Value
- ---------------------------------------------------------
TEXAS--CONTINUED
Houston Water & Sewer System,
Ser SG-78, RB, 2.320%,
12/01/25 (b) $ 8,835 $ 8,835
Lower Colorado River
Authority, Merlots Project,
Ser ZZZ, RB, 2.350%,
01/01/28, FSA (b) 3,500 3,500
Pearland Independent School
District, Trust Receipts,
Ser SG 106, 2.320%, 02/15/22
(b) 600 600
----------
50,935
----------
VIRGINIA (8.8%)
ABN Amro Munitops Certificate
Trust, Ser 2003-33, RB,
2.300%, 04/01/11, MBIA (b) 5,370 5,370
Alexandria Redevelopment &
Housing Authority, Ser PT
1251, RB, 2.210%, 12/01/29,
LOC: Merrill Lynch Capital
Services, Inc. (b) (d) 4,495 4,495
Charlottesville Industrial
Development Authority,
Seminole Project, Ser A, RB,
2.300%, 12/01/13, Callable
05/10/05 @ 100, LOC: Branch
Banking & Trust Co. (b) 3,545 3,545
Chesterfield County Industrial
Development Authority, Ser
PT 2133, RB, 2.370%,
02/15/07, LOC: Merrill Lynch
Capital Services, Inc. (b) 2,995 2,995
Clarke County Industrial
Development Authority,
Hospital Facilities,
Winchester Medical Center
Project, RB, 2.270%,
01/01/30, FSA (b) 31,000 31,000
</Table>
<Table>
<Caption>
- ---------------------------------------------------------
Shares or
Principal
Amount Value
- ---------------------------------------------------------
VIRGINIA--CONTINUED
Clarke County Industrial
Development Authority,
Powhatan School District
Project, RB, 2.270%,
09/01/22, LOC: Branch
Banking & Trust Co. (b) $ 1,600 $ 1,600
Danville-Pittsylvania Regional
Industrial Facility
Authority, Institute of
Advanced Research Project,
RB, 2.270%, 08/01/12, LOC:
Branch Banking & Trust Co.
(b) 2,325 2,325
Front Royal & Warren County
Industrial Development
Authority, Warren Memorial
Hospital Project, RB,
2.270%, 05/01/23, LOC:
Branch Banking & Trust Co.
(b) 2,945 2,945
Hanover County Industrial
Development Authority,
Covenant Woods Project, RB,
2.270%, 07/01/29, LOC:
Branch Banking & Trust Co.
(b) 5,810 5,810
Lexington Industrial
Development Authority,
V.M.I. Development Board,
Inc. Project, RB, 2.290%,
12/01/34, LOC: Wachovia Bank
N.A. (b) 10,000 10,000
Louisa County Industrial
Development Authority,
University of Virginia
Health Services Foundation
Project, RB, 2.310%,
10/01/30, LOC: First Union
National Bank (b) 3,000 3,000
Norfolk Redevelopment &
Housing Authority, Student
Housing Project, RB, 2.300%,
07/01/34, LOC: Bank of
America N.A. (b) 7,000 7,000
</Table>
22
SCHEDULE OF PORTFOLIO INVESTMENTS
STI CLASSIC FUNDS March 31, 2005 (Amounts in thousands, except shares)
TAX-EXEMPT MONEY MARKET FUND -- CONCLUDED
<Table>
<Caption>
- ---------------------------------------------------------
Shares or
Principal
Amount Value
- ---------------------------------------------------------
VIRGINIA--CONTINUED
Rockingham County Industrial
Development Authority,
Sunnyside Presbyterian Home
Project, RB, 2.270%,
12/01/33, LOC: Branch
Banking & Trust Co. (b) $ 10,420 $ 10,420
Shenandoah County Industrial
Development Authority,
Shenandoah Memorial Hospital
Project, RB, 2.270%,
11/01/14, LOC: Branch
Banking & Trust Co. (b) 3,270 3,270
University of Virginia Merlots
Project, Ser B 31, RB,
2.350%, 06/01/27, Callable
06/01/13 @ 100, LOC:
Wachovia Bank N.A. (b) 4,735 4,735
Virginia Beach Development
Authority, Production Road
Ventures Project, RB, AMT,
2.390%, 09/01/16, LOC:
Wachovia Bank N.A. (b) 1,100 1,100
Virginia Biotechnology
Research Park Authority,
United Network for Organ
Sharing Project, RB, 2.290%,
04/01/27, LOC: Wachovia Bank
N.A. (b) 6,890 6,890
Virginia College Building
Authority, Shenandoah
University Project, RB,
2.300%, 05/01/32, LOC:
Branch Banking & Trust Co.
(b) 3,000 3,000
Virginia Public School
Authority, Ser PT 1619, RB,
2.300%, 08/01/08, LOC:
Merrill Lynch Capital
Services, Inc. (b) 2,480 2,480
Virginia Resources Authority,
Clean Water Revenue, Ser PA
790, RB, 2.300%, 10/01/16,
Callable 10/01/10 @ 100,
LOC: Merrill Lynch Capital
Services, Inc. (b) (d) 2,000 2,000
</Table>
<Table>
<Caption>
- ---------------------------------------------------------
Shares or
Principal
Amount Value
- ---------------------------------------------------------
VIRGINIA--CONTINUED
Williamsburg Industrial
Development Authority,
Colonial Williamsburg
Project, RB, 2.290%,
10/01/35, LOC: First Union
National Bank (b) $ 4,220 $ 4,220
----------
118,200
----------
WASHINGTON (2.3%)
King County Housing Authority,
Ser PT 2185, RB, 2.300%,
09/20/42 (b) 5,545 5,545
King County Sewer, Ser PA
1071, RB, 2.320%, 01/01/10,
FSA (b) 7,495 7,495
Seattle Certificates, Ser 348,
GO, 2.340%, 12/15/28,
Callable 12/15/08 @ 100,
LOC: Morgan Stanley Dean
Witter (b) 4,495 4,495
Washington Public Power Supply
System, Nuclear Power
Project No. 1, Ser 1A-1, RB,
2.280%, 07/01/17, LOC: Bank
of America N.A. (b) 3,745 3,745
Washington State Merlots
Project, Ser B23, GO,
2.350%, 12/01/25, Callable
06/01/13 @ 100, MBIA (b) 10,000 10,000
----------
31,280
----------
WISCONSIN (0.3%)
Appleton Industrial
Development, Pro Label
Project, RB, AMT, 2.550%,
11/01/12, LOC: Bank One N.A.
(b) 585 585
Germantown Industrial, J.W.
Speaker Corp. Project, RB,
AMT, 2.550%, 08/01/11, LOC:
Bank One Milwaukee N.A. (b) 560 560
</Table>
23
<Table>
<Caption>
- ---------------------------------------------------------
Shares or
Principal
Amount Value
- ---------------------------------------------------------
WISCONSIN--CONTINUED
Holland Industrial
Development, White Clover
Dairy, Inc. Project, RB,
AMT, 2.450%, 06/01/13, LOC:
Bank One N.A. (b) $ 985 $ 985
Oconomowoc Industrial
Development, Quest
Technologies Project, RB,
AMT, 2.450%, 05/01/18, LOC:
Bank One Wisconsin (b) 1,255 1,255
----------
3,385
----------
Total Municipal Bonds
(Cost $1,334,392) 1,334,392
----------
- ---------------------------------------------------------
Shares or
Principal
Amount Value
- ---------------------------------------------------------
MONEY MARKET FUNDS (0.1%)
Goldman Sachs Financial Square
Funds, Tax-Free Money Market
Fund, Institutional Shares 1,424,271 $ 1,424
----------
Total Money Market Funds
(Cost $1,424) 1,424
----------
Total Investments
(Cost $1,335,816) (a) -- 99.8% 1,335,816
Other assets in excess of
liabilities -- 0.2% 2,789
----------
Net Assets -- 100.0% $1,338,605
==========
</Table>
See notes to schedules of portfolio investments and notes to financial
statements.
24
SCHEDULE OF PORTFOLIO INVESTMENTS
STI CLASSIC FUNDS March 31, 2005 (Amounts in thousands, except shares)
U.S. GOVERNMENT SECURITIES MONEY MARKET FUND
<Table>
<Caption>
- ----------------------------------------------------------
Principal
Amount Value
- ----------------------------------------------------------
U.S. GOVERNMENT AGENCIES (91.6%)
FANNIE MAE (51.2%)
1.573%, 04/01/05 (c) $10,000 $ 10,000
2.768%, 05/03/05 (b) 25,000 25,000
2.791%, 05/11/05 (c) 25,000 24,923
2.958%, 06/15/05 (c) 20,000 19,878
2.930%, 06/17/05 (c) 20,000 19,879
2.067%, 06/24/05 (c) 15,000 14,930
2.733%, 08/29/05 (b) 35,000 34,993
2.820%, 09/06/05 (b) 50,000 49,983
2.690%, 09/15/05 (b) 50,000 49,986
2.456%, 10/14/05 (c) 20,000 19,741
2.984%, 11/10/05 (c) 10,000 9,823
2.736%, 12/29/05 (b) 55,000 54,980
2.632%, 01/09/06 (b) 49,200 49,179
--------
383,295
--------
FEDERAL FARM CREDIT BANK (8.7%)
2.720%, 05/16/05 (b) 25,000 24,999
2.198%, 09/15/05 (c) 15,000 14,850
2.790%, 09/30/05 (b) 25,000 25,003
--------
64,852
--------
FEDERAL HOME LOAN BANK (21.1%)
1.200%, 04/01/05 15,000 15,000
1.400%, 04/01/05 20,000 20,000
2.814%, 05/18/05 (c) 20,000 19,927
2.834%, 09/08/05 (b) 10,850 10,847
2.720%, 09/16/05 (b) 65,000 64,986
2.641%, 10/05/05 (b) 27,000 26,995
--------
157,755
--------
FREDDIE MAC (10.6%)
2.051%, 06/09/05 (c) 20,000 19,922
2.020%, 06/27/05 (c) 15,000 14,928
2.333%, 09/20/05, Ser RB (c) 10,000 9,891
2.346%, 10/18/05 (c) 15,000 14,809
2.802%, 11/15/05, Ser RB (c) 20,000 19,655
--------
79,205
--------
Total U.S. Government Agencies (Cost
$685,107) 685,107
--------
</Table>
<Table>
<Caption>
- ----------------------------------------------------------
Principal
Amount Value
- ----------------------------------------------------------
REPURCHASE AGREEMENTS (8.5%)
ABN AMRO Bank N.V.,
2.770%, dated 03/31/05, to be
repurchased on 04/01/05,
repurchase price $7,105,058
(collateralized by U.S.
Government Agencies, 4.500%, due
08/01/18; total market value
$7,246,611) $ 7,105 $ 7,105
Bear Stearns & Co., Inc.,
2.830%, dated 03/31/05, to be
repurchased on 04/01/05,
repurchase price $4,388,327
(collateralized by U.S.
Government Agencies, DN, due
04/01/35; total market value
$4,476,444) 4,388 4,388
BNP Paribas,
2.820%, dated 03/31/05, to be
repurchased on 04/01/05,
repurchase price $10,279,563
(collateralized by U.S.
Government Agencies, 3.875%, due
02/15/10; total market value
$10,484,573) 10,279 10,279
Lehman Brothers, Inc.,
2.840%, dated 03/31/05, to be
repurchased on 04/01/05,
repurchase price $8,242,898
(collateralized by U.S.
Government Agencies,
5.000%, due 02/01/34; total
market value $8,410,226) 8,242 8,242
Merrill Lynch & Co., Inc.,
2.820%, dated 03/31/05, to be
repurchased on 04/01/05,
repurchase price $18,933,502
(collateralized by U.S.
Government Agencies, 5.000%, due
03/01/13-12/01/23; total market
value $19,314,109) 18,931 18,931
</Table>
25
<Table>
<Caption>
- ----------------------------------------------------------
Principal
Amount Value
- ----------------------------------------------------------
REPURCHASE AGREEMENTS--CONTINUED
Morgan Stanley,
2.870%, dated 03/31/05, to be
repurchased on 04/01/05,
repurchase price $10,997,710
(collateralized by U.S.
Government Agencies, 3.725%-
5.535%, due 10/01/11-07/01/25;
total market value $11,216,785) $10,997 $ 10,997
UBS Warburg LLC,
2.840%, dated 03/31/05, to be
repurchased on 04/01/05,
repurchase price $3,330,163
(collateralized by U.S.
Government Agencies, 4.500%, due
06/15/30; total market value
$3,400,362) 3,330 3,330
--------
Total Repurchase Agreements
(Cost $63,272) 63,272
--------
Total Investments
(Cost $748,379) (a) -- 100.1% 748,379
Liabilities in excess of other assets -- (0.1)% (1,085)
--------
Net Assets -- 100.0% $747,294
========
</Table>
See notes to schedules of portfolio investments and notes to financial
statements.
26
SCHEDULE OF PORTFOLIO INVESTMENTS
STI CLASSIC FUNDS March 31, 2005 (Amounts in thousands, except shares)
U.S. TREASURY MONEY MARKET FUND
<Table>
<Caption>
- ---------------------------------------------------------
Principal
Amount Value
- ---------------------------------------------------------
U.S. TREASURY OBLIGATIONS (58.0%)
U.S. TREASURY BILLS (44.9%)
2.555%, 04/07/05 (c) $212,000 $ 211,911
2.688%, 04/15/05 (c) 264,000 263,725
2.667%, 04/21/05 (c) 123,000 122,837
3.009%, 08/25/05 (c) 35,000 34,578
----------
633,051
----------
U.S. TREASURY NOTES (13.1%)
6.750%, 05/15/05 95,000 95,527
5.750%, 11/15/05 87,000 88,716
----------
184,243
----------
Total U.S. Treasury Obligations
(Cost $817,294) 817,294
----------
REPURCHASE AGREEMENTS (55.6%)
ABN AMRO Bank N.V.,
2.630%, dated 03/31/05, to be
repurchased on 04/01/05,
repurchase price $65,630,745
(collateralized by U.S.
Treasury Obligations, 3.375%,
due 02/15/08; total market
value $66,938,802) 65,626 65,626
Bear Stearns & Co., Inc.,
2.600%, dated 03/31/05, to be
repurchased on 04/01/05,
repurchase price $24,910,402
(collateralized by U.S.
Treasury Obligations, 6.250%,
due 05/15/30; total market
value $27,214,090) 24,909 24,909
BNP Paribas,
2.630%, dated 03/31/05, to be
repurchased on 04/01/05,
repurchase price $212,551,049
(collateralized by U.S.
Treasury Obligations,
DN-8.875%, due
05/15/05-11/15/27; total
market value $216,786,504) 212,537 212,537
Deutsche Bank AG,
2.650%, dated 03/31/05, to be
repurchased on 04/01/05,
repurchase price $35,683,783
(collateralized by U.S.
Treasury Obligations,
DN-5.250%, due
08/11/05-11/15/28; total
market value $36,395,689) 35,681 35,681
</Table>
<Table>
<Caption>
- ---------------------------------------------------------
Principal
Amount Value
- ---------------------------------------------------------
REPURCHASE AGREEMENTS--CONTINUED
Dresdner Bank AG,
2.600%, dated 03/31/05, to be
repurchased on 04/01/05,
repurchase price $37,973,264
(collateralized by U.S.
Treasury Obligations,
DN-4.875%, due
05/12/05-02/15/12; total
market value $38,730,550) $ 37,971 $ 37,971
Greenwich Capital,
2.630%, dated 03/31/05, to be
repurchased on 04/01/05,
repurchase price $68,196,848
(collateralized by U.S.
Treasury Obligations, 3.000%,
due 02/15/09; total market
value $69,559,120) 68,192 68,192
JPMorgan Chase & Co.,
2.600%, dated 03/31/05, to be
repurchased on 04/01/05,
repurchase price $58,358,596
(collateralized by U.S.
Treasury Obligations, 4.000%,
due 06/15/09; total market
value $59,525,915) 58,354 58,354
Lehman Brothers, Inc.,
2.580%, dated 03/31/05, to be
repurchased on 04/01/05,
repurchase price $60,515,261
(collateralized by U.S.
Treasury Obligations,
DN-8.000%, due
05/15/12-05/15/30; total
market value $61,721,249) 60,511 60,511
Merrill Lynch & Co., Inc.,
2.600%, dated 03/31/05, to be
repurchased on 04/01/05,
repurchase price $60,571,620
(collateralized by U.S.
Treasury Obligations,
6.125%-8.750%, due
08/15/20-11/15/27; total
market value $61,779,574) 60,567 60,567
Morgan Stanley,
2.650%, dated 03/31/05, to be
repurchased on 04/01/05,
repurchase price $61,083,604
(collateralized by U.S.
Treasury Obligations, DN, due
05/15/20-11/15/22; total
market value $62,301,058) 61,079 61,079
</Table>
27
<Table>
<Caption>
- ---------------------------------------------------------
Principal
Amount Value
- ---------------------------------------------------------
REPURCHASE AGREEMENTS--CONTINUED
UBS Warburg LLC,
2.630%, dated 03/31/05, to be
repurchased on 04/01/05,
repurchase price $96,894,398
(collateralized by U.S.
Treasury Obligations,
6.250%-12.750%, due
11/15/10-08/15/23; total
market value $116,861,737) $ 96,887 $ 96,887
----------
Total Repurchase Agreements
(Cost $782,314) 782,314
----------
Total Investments
(Cost $1,599,608) (a) -- 113.6% 1,599,608
Liabilities in excess of other
assets -- (13.6)% (191,522)
----------
Net Assets -- 100.0% $1,408,086
==========
</Table>
See notes to schedules of portfolio investments and notes to financial
statements.
28
SCHEDULE OF PORTFOLIO INVESTMENTS
STI CLASSIC FUNDS March 31, 2005 (Amounts in thousands, except shares)
VIRGINIA TAX-FREE MONEY MARKET FUND
<Table>
<Caption>
- --------------------------------------------------------
Shares or
Principal
Amount Value
- --------------------------------------------------------
MUNICIPAL BONDS (97.8%)
OTHER (2.8%)
Eagle Tax-Exempt Trust
Certificates, Ser 994601, RB,
2.320%, 05/15/19, Callable
05/15/09 @ 101, LOC: Citibank
N.A. (b) (d) $ 10,560 $ 10,560
--------
PUERTO RICO (11.5%)
Puerto Rico Commonwealth, Ser
PA 774, 2.280%, 07/01/13 (b)
(d) 7,040 7,040
Puerto Rico Commonwealth
Highway & Transportation
Authority, Ser PT 1834, RB,
2.280%, 01/01/09, AMBAC (b) 10,000 10,000
Puerto Rico Municipal Finance
Agency, Ser PA 609, GO,
2.280%, 08/01/19, LOC:
Merrill Lynch Capital
Services, Inc. (b) 8,370 8,370
Puerto Rico Public Building
Authority, Ser PA 577, RB,
2.280%, 07/01/21, Callable
07/01/07 @ 101.50, AMBAC (b) 7,000 7,000
Puerto Rico Public Finance
Corp., Ser PA 552, RB,
2.280%, 06/01/14, AMBAC (b)
(d) 7,300 7,300
Puerto Rico Public Finance
Corp., Ser PA-502, GO,
2.280%, 06/01/19, LOC:
Merrill Lynch Capital
Services, Inc. (b) 3,315 3,315
--------
43,025
--------
VIRGINIA (83.5%)
Albemarle County Industrial
Development Authority,
Eldercare Gardens Project,
RB, 2.300%, 12/01/05, LOC:
Bank of America N.A. (b) 2,445 2,445
Albemarle County Industrial
Development Authority, Health
Services, University of
Virginia Health Services
Project, RB, 2.290%,
10/01/22, LOC: Wachovia Bank
N.A. (b) 6,185 6,185
</Table>
<Table>
<Caption>
- --------------------------------------------------------
Shares or
Principal
Amount Value
- --------------------------------------------------------
VIRGINIA--CONTINUED
Alexandria Industrial
Development Authority,
Educational Facilities,
Alexandria County Day School
Project, RB, 2.340%,
06/01/25, LOC: First Union
National Bank (b) $ 4,295 $ 4,295
Alexandria Industrial
Development Authority,
American Red Cross Project,
RB, 2.340%, 01/01/09, LOC:
First Union National Bank (b) 2,070 2,070
Alexandria Industrial
Development Authority,
Association for Supervision &
Currency Project, RB, 2.290%,
07/01/23, LOC: First Union
National Bank (b) 1,485 1,485
Alexandria Industrial
Development Authority, Pooled
Loan Program, Ser A, RB,
2.300%, 07/01/26, LOC: Bank
of America N.A. (b) 1,000 1,000
Alexandria Redevelopment &
Housing Authority, Ser PT
1444, RB, 3.070%, 07/01/05
(b) (d) 1,000 1,000
Arlington County Ballston
Public Parking Project, RB,
2.200%, 08/01/17, LOC: Bank
of America N.A. (b) 6,750 6,750
Ashland Industrial Development
Authority, Health & Community
Services Facilities, YMCA of
Greater Richmond Project, Ser
A, RB, 2.290%, 11/01/20, LOC:
Wachovia Bank N.A. (b) 8,605 8,605
Charles City County Economic
Development Authority, Waste
Management Inc. Project, Ser
A, RB, AMT, 2.350%, 02/01/29,
LOC: JPMorgan Chase & Co. (b) 4,000 4,000
Chesapeake Bay Bridge & Tunnel
Community District Authority,
General Resolution Project,
RB, 2.320%, 07/01/25, MBIA
(b) 6,755 6,755
</Table>
29
<Table>
<Caption>
- --------------------------------------------------------
Shares or
Principal
Amount Value
- --------------------------------------------------------
VIRGINIA--CONTINUED
Chesterfield County Industrial
Development Authority, Ser PT
2133, RB, 2.370%, 02/15/07,
LOC: Merrill Lynch & Co.,
Inc. (b) $ 4,000 $ 4,000
Chesterfield County Industrial
Development Authority,
Virginia State University
Real Estate Project, Ser A,
RB, 2.320%, 07/01/29, LOC:
Bank of America N.A. (b) 1,265 1,265
Clarke County Industrial
Development Authority,
Hospital Facilities,
Winchester Medical Center,
Inc. Project, RB, 2.270%,
01/01/30, FSA (b) 15,000 15,000
Danville-Pittsylvania Regional
Industrial Facility,
Authority Institute of
Advanced Learning & Research
Project, RB, 2.270%,
08/01/12, LOC: Branch Banking
& Trust Co. (b) 7,130 7,130
Fairfax County Economic
Development Authority, Flint
Hill School Project, RB,
2.300%, 09/01/21, LOC: First
Union National Bank (b) 4,640 4,640
Fairfax County Economic
Development Authority,
Smithsonian Institute
Project, Ser A, RB, 2.200%,
12/01/33, LOC: Bank of
America (b) 3,600 3,600
Fairfax County Industrial
Development Authority,
Fairfax Hospital System
Project, Ser B, RB, 2.230%,
10/01/25 (b) 3,960 3,960
Fairfax County Industrial
Development Authority, Inova
Health Systems Project, RB,
2.230%, 01/01/30 (b) 15,600 15,600
Fairfax County Industrial
Development Authority, Inova
Services Project, Ser A, RB,
2.230%, 01/15/22 (b) 900 900
</Table>
<Table>
<Caption>
- --------------------------------------------------------
Shares or
Principal
Amount Value
- --------------------------------------------------------
VIRGINIA--CONTINUED
Fairfax County Sewer Authority,
Ser PA-1278, RB, 2.300%,
07/15/15, Callable 07/15/14 @
100, LOC: Merrill Lynch
Capital Services, Inc. (b)
(d) $ 5,000 $ 5,000
Fairfax County Water Authority,
Municipal Trade Receipts, Ser
SGB-40A, RB, 2.320%, 04/01/30
(b) 7,850 7,850
Front Royal & Warren County
Industrial Development
Authority, Warren Memorial
Hospital Project, RB, 2.270%,
05/01/23, LOC: Branch Banking
& Trust Co. (b) 580 580
Greene County Industrial
Development Authority, Blue
Ridge School Project, RB,
2.270%, 06/01/26, LOC: Branch
Banking & Trust Co. (b) 5,900 5,900
Hampton Redevelopment & Housing
Authority, Multi-Family
Housing, Avalon at Hampton
Inn Project, Ser A, RB,
2.100%, 06/15/26, LOC: Credit
Suisse First Boston LLC (b) 2,750 2,750
Hampton Redevelopment & Housing
Authority, Multi-Family
Housing, Avalon Pointe
Project, RB, AMT, 2.270%,
06/15/26, FNMA (b) 4,537 4,537
Hampton Roads Regional Jail
Authority, Ser 569, RB,
2.320%, 07/01/12, MBIA (b) 1,200 1,200
Hanover County Industrial
Development Authority,
Residential Care Facility,
Covenant Woods Project, RB,
2.270%, 07/01/29, LOC: Branch
Banking & Trust Co. (b) 11,000 11,000
</Table>
30
SCHEDULE OF PORTFOLIO INVESTMENTS
STI CLASSIC FUNDS March 31, 2005 (Amounts in thousands, except shares)
VIRGINIA TAX-FREE MONEY MARKET FUND -- CONTINUED
<Table>
<Caption>
- --------------------------------------------------------
Shares or
Principal
Amount Value
- --------------------------------------------------------
VIRGINIA--CONTINUED
Henrico County Economic
Development Authority
Educational Facilities,
Steward School Project, RB,
2.270%, 07/01/33, LOC: Branch
Banking & Trust Co. (b) $ 2,700 $ 2,700
King George County Industrial
Development Authority, Ser PT
2473, RB, 2.300%, 03/01/24,
Callable 03/01/14 @ 100, FSA
(b) 5,275 5,275
Loudoun County Industrial
Development Authority, Howard
Hughes Medical Institute
Project, Ser D, RB, 2.220%,
02/15/38 (b) 9,300 9,300
Loudoun County Industrial
Development Authority, Howard
Hughes Medical Institute
Project, Ser F, RB, 2.280%,
02/15/38 (b) 4,400 4,400
Loudoun County Industrial
Development Authority, Howard
Hughes Medical Institute
Project, Ser C, RB, 2.300%,
02/15/38 (b) 4,200 4,200
Louisa County Industrial
Development Authority, Pooled
Financing Project, RB,
2.300%, 01/01/20, LOC: Bank
of America N.A. (b) 1,005 1,005
Lynchburg Industrial
Development Authority,
Aerofin Project, RB, AMT,
2.430%, 03/01/29, LOC: PNC
Bank N.A. (b) 2,075 2,075
Lynchburg Industrial
Development Authority,
Educational Facilities,
Randolph Macon Project, RB,
2.290%, 09/01/23, LOC:
Wachovia Bank N.A. (b) 7,870 7,870
Lynchburg Industrial
Development Hospital
Facilities, First Mortgage,
VHA Mid Atlantic Project, Ser
G, RB, 2.300%, 12/01/25,
AMBAC (b) 6,930 6,930
Manassas School Project, GO,
3.000%, 07/01/05 1,100 1,104
</Table>
<Table>
<Caption>
- --------------------------------------------------------
Shares or
Principal
Amount Value
- --------------------------------------------------------
VIRGINIA--CONTINUED
Newport News Redevelopment &
Housing Authority, Ser PT
1374, RB, 2.300%, 12/01/06,
LOC: Merrill Lynch Capital
Services, Inc. (b) $ 8,950 $ 8,950
Newport News Industrial
Development Authority, CNU
Warwick LLC Student Housing
Project, RB, 2.300%,
11/01/28, LOC: Bank of
America N.A. (b) 4,300 4,300
Norfolk Industrial Development
Authority, Children's
Hospital Facilities Project,
RB, 2.300%, 06/01/20, LOC:
Wachovia Bank (b) 15,300 15,300
Norfolk Redevelopment & Housing
Authority, Old Dominion
University Project, RB,
2.300%, 08/01/33, LOC: Bank
of America N.A. (b) 3,000 3,000
Norfolk Redevelopment & Housing
Authority, Old Dominion
University Project, Ser B,
RB, 2.300%, 08/01/33, LOC:
Bank of America N.A. (b) 4,400 4,400
Orange County Industrial
Development Authority, Zamma
Project, RB, 2.270%,
12/01/22, LOC: SouthTrust
Bank N.A. (b) 1,860 1,860
Peninsula Ports Authority,
Dominion Terminal Associates
Project, Ser C, RB, 2.270%,
07/01/16, LOC: Citibank N.A.
(b) 2,020 2,020
Peninsula Ports Authority,
Riverside Health Systems
Project, RB, 2.300%, 07/01/37
(b) 4,900 4,900
Portsmouth Industrial
Development Authority,
Fairwood Homes Project, Ser
A, RB, 2.330%, 11/01/27, LOC:
Bank of America N.A. (b) 2,645 2,645
</Table>
31
<Table>
<Caption>
- --------------------------------------------------------
Shares or
Principal
Amount Value
- --------------------------------------------------------
VIRGINIA--CONTINUED
Prince Edward County Industrial
Development Authority,
Eldercare of Virginia
Project, RB, 2.300%,
08/01/05, LOC: Bank of
America N.A. (b) $ 2,050 $ 2,050
Roanoke Industrial Development
Authority, Hollins University
Project, RB, 2.290%,
05/01/15, LOC: First Union
National Bank (b) 5,500 5,500
University of Virginia, Ser A,
RB, 2.220%, 06/01/34 (b) 13,000 13,000
Virginia Beach Development
Authority, Multi-Family
Housing, Ser PT-1146, RB,
2.330%, 07/01/06, Callable
10/01/05 @ 100, LOC: Merrill
Lynch Capital Services, Inc.
(b) (d) 12,830 12,830
Virginia Beach Development
Authority, Ocean Ranch
Project, RB, 2.270%,
07/01/17, LOC: Branch Banking
& Trust Co. (b) 1,785 1,785
Virginia College Building
Authority Educational
Facilities, Ser 134, RB,
2.300%, 09/01/07, FSA (b) 9,425 9,425
Virginia Resources Authority,
Clean Water Revenue, Ser PA
790, RB, 2.300%, 10/01/16,
Callable 10/01/10 @ 100, LOC:
Merrill Lynch Capital
Services, Inc. (b) (d) 2,600 2,600
Virginia State Commonwealth
Transportation Board Rate
Receipts Authority, Ser SG
134, RB, 2.300%, 05/15/22,
Callable 05/15/09 @ 101, LOC:
Societe Generale (b) 2,900 2,900
Virginia State Port Authority,
Ser SG 111, RB, 2.350%,
07/01/24 (b) 14,705 14,705
</Table>
<Table>
<Caption>
- --------------------------------------------------------
Shares or
Principal
Amount Value
- --------------------------------------------------------
VIRGINIA--CONTINUED
Virginia State Public Building
Authority, Ser 131, RB,
2.320%, 08/01/19, Callable
08/01/08 @ 100, MBIA (b) $ 1,785 $ 1,785
Virginia State Public School
Authority, Ser II-R 4050, RB,
2.320%, 08/01/17, Callable
08/01/13 @ 100, LOC:
Citigroup Global Market
Holding, Inc. (b) 4,140 4,140
Virginia State Public School
Authority, Ser PT 1619, RB,
2.300%, 08/01/08, LOC:
Merrill Lynch Capital
Services, Inc. (b) (d) 8,480 8,480
Virginia State Small Business
Financing Authority, Clarke
County Industrial Development
Project, RB, AMT, 2.370%,
07/01/25, LOC: Branch Banking
& Trust Co. (b) 1,740 1,740
Williamsburg Industrial
Development Authority,
Colonial Williamsburg Museum
Foundation Project, RB,
2.300%, 12/01/18, LOC: Bank
of America N.A. (b) 250 250
--------
312,926
--------
Total Municipal Bonds (Cost
$366,511) 366,511
--------
MONEY MARKET FUNDS (2.1%)
Federated Virginia Municipal
Cash Trust, Institutional
Class 7,758,308 7,758
--------
Total Money Market Funds
(Cost $7,758) 7,758
--------
Total Investments
(Cost $374,269)(a) -- 99.9% 374,269
Other assets in excess of liabilities -- 0.1% 488
--------
Net Assets -- 100.0% $374,757
========
</Table>
See notes to schedules of portfolio investments and notes to financial
statements.
32
NOTES TO SCHEDULES OF PORTFOLIO INVESTMENTS
STI CLASSIC FUNDS March 31, 2005
(a) See notes to financial statements for unrealized
appreciation/(depreciation) of securities on a tax basis.
(b) Variable rate security. Rate presented represents
rate in effect at March 31, 2005. Maturity date represents actual maturity
date.
(c) Rate represents the effective yield at purchase.
(d) Rule 144A, Section 4(2) or other security which
is restricted as to resale to institutional investors. The Fund's advisor
has deemed this security to be liquid based upon procedures approved by
the Board of Trustees.
(e) The Fund's advisor has deemed this security to
be illiquid based upon procedures approved by the Board of Trustees.
The following abbreviations are used in these Schedules of Portfolio
Investments:
AMBAC Security insured by the American
Municipal Bond Assurance Corporation.
AMT Alternative Minimum Tax Paper
Cl Class
COP Certificates of Participation
DN Discount Note
FGIC Security insured by the Financial Guaranty
Insurance Company.
FHLB Security insured by the Federal Home Loan
Bank.
FHLMC Security insured by Freddie Mac.
FNMA Security insured by Fannie Mae.
FSA Security insured by Financial Security
Assurance.
GNMA Security insured by the Government
National Mortgage Association.
GO General Obligation
LOC Line of Credit
MBIA Security insured by the Municipal Bond
Insurance Association.
RB Revenue Bond
Ser Series
33
STATEMENTS OF ASSETS AND LIABILITIES (000)
STI CLASSIC FUNDS March 31, 2005
<Table>
<Caption>
U.S. Government Virginia
Prime Quality Tax-Exempt Securities U.S. Treasury Tax-Free
Money Market Money Market Money Market Money Market Money Market
Fund Fund Fund Fund Fund
------------- ------------ --------------- ------------- ------------
Assets:
Total Investments, at Cost...................... $5,345,437 $1,335,816 $748,379 $1,599,608 $374,269
========== ========== ======== ========== ========
Investments, at Value........................... $5,284,201 $1,335,816 $685,107 $ 817,294 $374,269
Repurchase Agreements, at Value................. 61,236 -- 63,272 782,314 --
---------- ---------- -------- ---------- --------
Total Investments, at Value..................... 5,345,437 1,335,816 748,379 1,599,608 374,269
---------- ---------- -------- ---------- --------
Cash and Cash Equivalents....................... 29 -- -- 70,833 --
Accrued Income.................................. 18,159 5,023 901 6,088 1,090
Prepaid Expenses and Other Assets............... 175 43 26 37 10
---------- ---------- -------- ---------- --------
Total Assets.................................... 5,363,800 1,340,882 749,306 1,676,566 375,369
---------- ---------- -------- ---------- --------
Liabilities:
Income Distributions Payable.................... 8,721 1,574 1,252 2,191 416
Payable for Investment Securities Purchased..... 43,299 -- 276 265,462 --
Investment Advisory Fees Payable................ 2,418 529 379 665 126
Administration Fees Payable..................... 119 31 18 32 8
Distribution and Service Fees Payable........... 355 50 33 -- 33
Custodian Fees Payable.......................... 18 2 4 5 3
Accrued Expenses................................ 377 91 50 125 26
---------- ---------- -------- ---------- --------
Total Liabilities............................... 55,307 2,277 2,012 268,480 612
---------- ---------- -------- ---------- --------
Total Net Assets................................ $5,308,493 $1,338,605 $747,294 $1,408,086 $374,757
========== ========== ======== ========== ========
Net Assets:
Capital......................................... $5,308,611 $1,338,605 $747,293 $1,408,222 $374,752
Undistributed (Distribution in Excess of) Net
Investment Income............................. (74) -- -- 62 6
Accumulated Net Realized Gains on Investments... (44) -- 1 (198) (1)
---------- ---------- -------- ---------- --------
Total Net Assets................................ $5,308,493 $1,338,605 $747,294 $1,408,086 $374,757
========== ========== ======== ========== ========
NET ASSETS:
T Shares........................................ $3,173,794 $ 936,272 $517,253 $1,407,783 $177,377
A Shares........................................ $2,124,606 $ 402,333 $230,041 $ 303 $197,380
L Shares........................................ $ 10,093 N/A N/A N/A N/A
SHARES OUTSTANDING:
T Shares........................................ 3,173,897 936,241 517,252 1,407,919 177,377
A Shares........................................ 2,124,621 402,364 230,042 303 197,375
L Shares........................................ 10,093 N/A N/A N/A N/A
NET ASSET VALUE, OFFERING AND REDEMPTION PRICE PER
SHARE:
T Shares........................................ $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
A Shares........................................ $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
L Shares*....................................... $ 1.00 N/A N/A N/A N/A
</Table>
Amounts designated as "--" are $0 or have been rounded to $0.
* Redemption price per share varies by length of time shares are held.
See notes to financial statements.
34
STATEMENTS OF OPERATIONS (000)
STI CLASSIC FUNDS For the Periods Indicated
<Table>
<Caption>
Prime Quality Money Tax-Exempt Money
Market Fund Market Fund
------------------------ ------------------------
06/01/04- 06/01/03- 06/01/04- 06/01/03-
03/31/05 05/31/04 03/31/05 05/31/04
--------- --------- --------- ---------
Investment Income:
Dividend Income........................................... $ 314 $ 2,346 $ 361 $ 258
Interest Income........................................... 83,062 64,117 17,111 13,442
------- ------- ------- -------
Total Investment Income................................... 83,376 66,463 17,472 13,700
------- ------- ------- -------
Expenses:
Investment Advisory Fees.................................. 27,754 37,505 6,174 7,476
Administration, Fund Accounting and Transfer Agent Fees... 1,486 3,954 385 932
Distribution Fees -- A Shares............................. 3,164 3,763 398 401
Distribution and Service Fees -- L Shares................. 94 184
Transfer Agent Shareholder Servicing Fees................. 11 154 3 36
Custodian Fees............................................ 107 183 19 33
Professional Fees......................................... 177 226 46 55
Insurance Fees............................................ 101 49 24 12
Registration Fees......................................... 79 196 23 46
Transfer Agent Out of Pocket Expenses..................... 127 191 32 45
Transfer Agent Fees -- T Shares........................... 3 17 2 16
Transfer Agent Fees -- A Shares........................... 4 26 2 13
Transfer Agent Fees -- L Shares........................... 3 23
Printing Fees............................................. 539 174 59 44
Trustees' Fees............................................ 47 61 12 14
Other Expenses............................................ 123 140 62 28
------- ------- ------- -------
Total Expenses............................................ 33,819 46,846 7,241 9,151
Less: Investment Advisory Fees Waived................... (4,697) (6,339) (1,121) (1,342)
Less: Distribution Fees Waived/Reimbursed -- A Shares... (70) (450) (12) (74)
Less: Distribution and Service Fees Waived -- L
Shares................................................ (68) (135)
Expense Offset -- Insurance Premiums.................... (45) -- (11) --
------- ------- ------- -------
Net Expenses.............................................. 28,939 39,922 6,097 7,735
------- ------- ------- -------
Net Investment Income..................................... 54,437 26,541 11,375 5,965
------- ------- ------- -------
Net Realized Gain (Loss) on Investments:
Net Realized Gain (Loss) on Investment Sold............... 2 655 83 353
------- ------- ------- -------
Total Net Realized Gain (Loss) on Investments............. 2 655 83 353
------- ------- ------- -------
Net Increase in Net Assets from Operations................ $54,439 $27,196 $11,458 $ 6,318
======= ======= ======= =======
</Table>
Amounts designated as "--" are $0 or have been rounded to $0.
35
<Table>
<Caption>
U.S. Government U.S. Treasury Virginia Tax-Free
Securities Money Market Money Market Money Market
------------------------ ------------------------ ------------------------
06/01/04- 06/01/03- 06/01/04- 06/01/03- 06/01/04- 06/01/03-
03/31/05 05/31/04 03/31/05 05/31/04 03/31/05 05/31/04
--------- --------- --------- --------- --------- ---------
$ -- $ -- $ -- $ -- $ 74 $ 33
13,224 10,191 20,050 10,997 4,170 3,171
------- ------- ------- ------ ------ ------
13,224 10,191 20,050 10,997 4,244 3,204
------- ------- ------- ------ ------ ------
4,624 6,110 7,200 7,356 1,089 1,269
244 644 375 776 92 217
322 399 -- -- 474 439
2 25 3 30 1 8
14 22 17 28 9 8
29 34 49 48 12 13
17 8 26 7 6 3
16 39 19 35 9 10
24 31 34 38 10 11
2 16 2 16 2 16
2 15 2 5 2 12
40 24 66 37 13 10
8 10 13 12 3 3
26 16 68 43 16 3
------- ------- ------- ------ ------ ------
5,370 7,393 7,874 8,431 1,738 2,022
(640) (843) (997) (1,016) -- --
(10) (64) (2) (5) (240) (254)
(7) -- (10) -- (3) --
------- ------- ------- ------ ------ ------
4,713 6,486 6,865 7,410 1,495 1,768
------- ------- ------- ------ ------ ------
8,511 3,705 13,185 3,587 2,749 1,436
------- ------- ------- ------ ------ ------
-- 27 (198) 628 81 87
------- ------- ------- ------ ------ ------
-- 27 (198) 628 81 87
------- ------- ------- ------ ------ ------
$ 8,511 $ 3,732 $12,987 $4,215 $2,830 $1,523
======= ======= ======= ====== ====== ======
</Table>
See notes to financial statements.
36
STATEMENTS OF CHANGES IN NET ASSETS (000)
STI CLASSIC FUNDS For the Periods Indicated
<Table>
<Caption>
Prime Quality Tax-Exempt
Money Market Fund Money Market Fund
---------------------------------------- ----------------------------------------
06/01/04- 06/01/03- 06/01/02- 06/01/04- 06/01/03- 06/01/02-
03/31/05 05/31/04 05/31/03 03/31/05 05/31/04 05/31/03
---------- ---------- ---------- ---------- ---------- ----------
Operations:
Net Investment Income................... $ 54,437 $ 26,541 $ 65,189 $ 11,375 $ 5,965 $ 9,430
Net Realized Gain (Loss) on Investments
Sold.................................. 2 655 (79) 83 353 145
---------- ---------- ---------- ---------- ---------- ----------
Net Increase in Net Assets from
Operations............................ 54,439 27,196 65,110 11,458 6,318 9,575
---------- ---------- ---------- ---------- ---------- ----------
Dividends and Distributions to
Shareholders:
Net Investment Income:
T Shares.............................. (35,893) (20,077) (46,605) (8,935) (5,054) (7,837)
A Shares.............................. (18,507) (6,411) (18,499) (2,440) (911) (1,593)
L Shares.............................. (124) (53) (85)
Realized Capital Gains:
T Shares.............................. -- (79) (495) (321) (110) (103)
A Shares.............................. -- (38) (240) (110) (26) (31)
L Shares.............................. -- -- (2)
---------- ---------- ---------- ---------- ---------- ----------
Total Dividends and Distributions....... (54,524) (26,658) (65,926) (11,806) (6,101) (9,564)
---------- ---------- ---------- ---------- ---------- ----------
Capital Transactions:
Change in Net Assets from Capital
Transactions.......................... (46,079) (870,301) 418,698 85,862 (74,992) 201,980
---------- ---------- ---------- ---------- ---------- ----------
Change in Net Assets.................... (46,164) (869,763) 417,882 85,514 (74,775) 201,991
---------- ---------- ---------- ---------- ---------- ----------
Net Assets:
Beginning of Period..................... 5,354,657 6,224,420 5,806,538 1,253,091 1,327,866 1,125,875
---------- ---------- ---------- ---------- ---------- ----------
End of Period........................... $5,308,493 $5,354,657 $6,224,420 $1,338,605 $1,253,091 $1,327,866
========== ========== ========== ========== ========== ==========
Undistributed (Distribution in Excess of)
Net Investment Income, End of Period.... $ (74) $ (65) $ (65) $ -- $ -- $ --
========== ========== ========== ========== ========== ==========
</Table>
Amounts designated as "--" are either $0 or have been rounded to $0.
37
<Table>
<Caption>
U.S. Government Securities U.S. Treasury
Money Market Fund Money Market Fund
----------------------------------------- ------------------------------------------
06/01/04- 06/01/03- 06/01/02- 06/01/04- 06/01/03- 06/01/02-
03/31/05 05/31/04 05/31/03 03/31/05 05/31/04 05/31/03
--------- ---------- ---------- ---------- ---------- ----------
$8,511... $ 3,705 $ 11,619 $ 13,185 $ 3,587 $ 7,887
--...... 27 -- (198) 628 500
-------- ---------- ---------- ---------- ---------- ----------
8,511... 3,732 11,619 12,987 4,215 8,387
-------- ---------- ---------- ---------- ---------- ----------
(6,507) (3,043) (9,571) (13,515) (3,589) (7,887)
(2,015) (662) (2,048) (3) (1) --
........
--...... -- -- -- (590) (442)
--...... -- -- -- -- --
........
-------- ---------- ---------- ---------- ---------- ----------
(8,522) (3,705) (11,619) (13,518) (4,180) (8,329)
-------- ---------- ---------- ---------- ---------- ----------
(102,119) (393,409) 35,043 174,651 153,152 208,775
-------- ---------- ---------- ---------- ---------- ----------
(102,130) (393,382) 35,043 174,120 153,187 208,833
-------- ---------- ---------- ---------- ---------- ----------
849,424.. 1,242,806 1,207,763 1,233,966 1,080,779 871,946
-------- ---------- ---------- ---------- ---------- ----------
$747,294.. $ 849,424 $1,242,806 $1,408,086 $1,233,966 $1,080,779
======== ========== ========== ========== ========== ==========
$--...... $ 11 $ -- $ 62 $ (21) $ (18)
======== ========== ========== ========== ========== ==========
<Caption>
Virginia Tax-Free
Money Market Fund
---------------------------------------
06/01/04- 06/01/03- 06/01/02-
03/31/05 5/31/04 05/31/03
--------- --------- ---------
$ 2,749 $ 1,436 $ 2,611
81 87 107
-------- -------- --------
2,830 1,523 2,718
-------- -------- --------
(1,651) (1,059) (1,959)
(1,097) (377) (652)
(76) (80) (5)
(66) (44) (2)
-------- -------- --------
(2,890) (1,560) (2,618)
-------- -------- --------
82,519 (23,691) (23,896)
-------- -------- --------
82,459 (23,728) (23,796)
-------- -------- --------
292,298 316,026 339,822
-------- -------- --------
$374,757 $292,298 $316,026
======== ======== ========
$ 6 $ -- $ --
======== ======== ========
</Table>
See notes to financial statements.
38
FINANCIAL HIGHLIGHTS
STI CLASSIC FUNDS Selected Data For a Share of Beneficial Interest Outstanding
Throughout the Periods Indicated.
<Table>
<Caption>
Net Asset Total
Value, Net Net Realized Dividends from Distributions Dividends
Beginning Investment Gains (Losses) Total From Net Investment from Realized and
of Period Income on Investments Operations Income Capital Gains Distributions
--------- ---------- -------------- ---------- -------------- ------------- -------------
PRIME QUALITY MONEY MARKET FUND
T Shares
Period Ended March 31,
2005** $1.00 0.01 -- 0.01 (0.01) -- (0.01)
Year Ended May 31,
2004 $1.00 0.01 -- 0.01 (0.01) --* (0.01)
Year Ended May 31,
2003 $1.00 0.01 -- 0.01 (0.01) --* (0.01)
Year Ended May 31,
2002 $1.00 0.02 -- 0.02 (0.02) -- (0.02)
Year Ended May 31,
2001 $1.00 0.06 -- 0.06 (0.06) -- (0.06)
Year Ended May 31,
2000 $1.00 0.05 -- 0.05 (0.05) -- (0.05)
A Shares
Period Ended March 31,
2005** $1.00 0.01 -- 0.01 (0.01) -- (0.01)
Year Ended May 31,
2004 $1.00 --* -- --* --* --* --*
Year Ended May 31,
2003 $1.00 0.01 -- 0.01 (0.01) --* (0.01)
Year Ended May 31,
2002 $1.00 0.02 -- 0.02 (0.02) -- (0.02)
Year Ended May 31,
2001 $1.00 0.05 -- 0.05 (0.05) -- (0.05)
Year Ended May 31,
2000 $1.00 0.05 -- 0.05 (0.05) -- (0.05)
L Shares
Period Ended March 31,
2005** $1.00 0.01 -- 0.01 (0.01) -- (0.01)
Year Ended May 31,
2004 $1.00 --* -- --* --* --* --*
Year Ended May 31,
2003 $1.00 0.01 -- 0.01 (0.01) --* (0.01)
Year Ended May 31,
2002 $1.00 0.01 -- 0.01 (0.01) -- (0.01)
Year Ended May 31,
2001 $1.00 0.05 -- 0.05 (0.05) -- (0.05)
Period Ended May 31,
2000(a) $1.00 0.03 -- 0.03 (0.03) -- (0.03)
TAX-EXEMPT MONEY MARKET FUND
T Shares
Period Ended March 31,
2005** $1.00 0.01 -- 0.01 (0.01) --* (0.01)
Year Ended May 31,
2004 $1.00 --* -- --* --* --* --*
Year Ended May 31,
2003 $1.00 0.01 -- 0.01 (0.01) --* (0.01)
Year Ended May 31,
2002 $1.00 0.01 -- 0.01 (0.01) --* (0.01)
Year Ended May 31,
2001 $1.00 0.03 -- 0.03 (0.03) -- (0.03)
Year Ended May 31,
2000 $1.00 0.03 -- 0.03 (0.03) -- (0.03)
A Shares
Period Ended March 31,
2005** $1.00 0.01 -- 0.01 (0.01) --* (0.01)
Year Ended May 31,
2004 $1.00 --* -- --* --* --* --*
Year Ended May 31,
2003 $1.00 0.01 -- 0.01 (0.01) --* (0.01)
Year Ended May 31,
2002 $1.00 0.01 -- 0.01 (0.01) --* (0.01)
Year Ended May 31,
2001 $1.00 0.03 -- 0.03 (0.03) -- (0.03)
Year Ended May 31,
2000 $1.00 0.03 -- 0.03 (0.03) -- (0.03)
U.S. GOVERNMENT SECURITIES MONEY MARKET FUND
T Shares
Period Ended March 31,
2005** $1.00 0.01 -- 0.01 (0.01) -- (0.01)
Year Ended May 31,
2004 $1.00 --* -- --* --* -- --*
Year Ended May 31,
2003 $1.00 0.01 -- 0.01 (0.01) -- (0.01)
Year Ended May 31,
2002 $1.00 0.02 -- 0.02 (0.02) -- (0.02)
Year Ended May 31,
2001 $1.00 0.05 -- 0.05 (0.05) -- (0.05)
Year Ended May 31,
2000 $1.00 0.05 -- 0.05 (0.05) -- (0.05)
A Shares
Period Ended March 31,
2005** $1.00 0.01 -- 0.01 (0.01) -- (0.01)
Year Ended May 31,
2004 $1.00 --* -- --* --* -- --*
Year Ended May 31,
2003 $1.00 0.01 -- 0.01 (0.01) -- (0.01)
Year Ended May 31,
2002 $1.00 0.02 -- 0.02 (0.02) -- (0.02)
Year Ended May 31,
2001 $1.00 0.05 -- 0.05 (0.05) -- (0.05)
Year Ended May 31,
2000 $1.00 0.05 -- 0.05 (0.05) -- (0.05)
</Table>
39
<Table>
<Caption>
Ratio of Expenses to
Average Net Assets
Net Assets Net Assets, Ratio of Net Expenses Ratio of Net Investment (Excluding Waivers,
Value, End Total End of to Average Net Income to Average Net Reimbursements and
of Period Return+ Period (000) Assets++ Assets++ Expense Offset)++
---------- ------- ------------ --------------------- ----------------------- ---------------------
$1.00 1.13% $3,173,794 0.60% 1.34% 0.71%
$1.00 0.52% $3,477,598 0.63% 0.52% 0.74%
$1.00 1.17% $4,284,266 0.63% 1.14% 0.74%
$1.00 2.29% $3,907,203 0.63% 2.22% 0.74%
$1.00 5.75% $3,728,371 0.63% 5.57% 0.75%
$1.00 5.20% $3,311,229 0.60% 5.06% 0.75%
$1.00 0.96% $2,124,606 0.80% 1.17% 0.91%
$1.00 0.34% $1,851,615 0.81% 0.34% 0.95%
$1.00 0.98% $1,925,521 0.81% 0.96% 0.94%
$1.00 2.11% $1,887,033 0.81% 2.09% 0.94%
$1.00 5.57% $1,927,309 0.80% 5.36% 0.95%
$1.00 5.02% $1,312,653 0.77% 4.94% 0.95%
$1.00 0.94% $ 10,093 0.83% 0.99% 1.48%
$1.00 0.22% $ 25,444 0.93% 0.21% 1.59%
$1.00 0.54% $ 14,633 1.25% 0.53% 1.62%
$1.00 1.36% $ 12,302 1.54% 1.04% 1.70%
$1.00 4.75% $ 4,051 1.53% 4.54% 1.92%
$1.00 2.93% $ 3,445 1.50% 4.46% 1.99%
$1.00 0.90% $ 936,272 0.51% 1.04% 0.61%
$1.00 0.48% $ 978,548 0.55% 0.46% 0.64%
$1.00 0.81% $1,088,415 0.54% 0.79% 0.64%
$1.00 1.38% $ 907,827 0.55% 1.39% 0.65%
$1.00 3.47% $1,080,362 0.54% 3.40% 0.65%
$1.00 3.19% $ 755,858 0.52% 3.16% 0.66%
$1.00 0.78% $ 402,333 0.65% 0.92% 0.75%
$1.00 0.35% $ 274,543 0.67% 0.34% 0.80%
$1.00 0.68% $ 239,451 0.67% 0.67% 0.79%
$1.00 1.26% $ 218,048 0.67% 1.25% 0.80%
$1.00 3.35% $ 256,894 0.67% 3.22% 0.80%
$1.00 3.07% $ 125,500 0.64% 3.01% 0.82%
$1.00 1.03% $ 517,253 0.62% 1.24% 0.71%
$1.00 0.43% $ 615,324 0.66% 0.43% 0.75%
$1.00 1.01% $ 992,560 0.65% 1.00% 0.74%
$1.00 2.25% $ 997,759 0.66% 2.17% 0.75%
$1.00 5.56% $ 805,285 0.65% 5.29% 0.75%
$1.00 4.86% $ 468,568 0.63% 4.80% 0.74%
$1.00 0.89% $ 230,041 0.78% 1.06% 0.88%
$1.00 0.28% $ 234,100 0.80% 0.28% 0.92%
$1.00 0.86% $ 250,246 0.80% 0.86% 0.92%
$1.00 2.11% $ 210,004 0.80% 2.02% 0.92%
$1.00 5.41% $ 158,087 0.79% 5.14% 0.93%
$1.00 4.71% $ 79,311 0.77% 4.62% 0.93%
</Table>
See notes to financial statements.
40
FINANCIAL HIGHLIGHTS
STI CLASSIC FUNDS Selected Data For a Share of Beneficial Interest Outstanding
Throughout the Periods Indicated.
<Table>
<Caption>
Net Asset Total
Value, Net Net Realized Dividends from Distributions Dividends
Beginning Investment Gains (Losses) Total From Net Investment from Realized and
of Period Income on Investments Operations Income Capital Gains Distributions
--------- ---------- -------------- ---------- -------------- ------------- -------------
U.S. TREASURY MONEY MARKET FUND
T Shares
Period Ended March 31,
2005** $1.00 0.01 -- 0.01 (0.01) -- (0.01)
Year Ended May 31,
2004 $1.00 --* -- --* --* --* --*
Year Ended May 31,
2003 $1.00 0.01 -- 0.01 (0.01) --* (0.01)
Year Ended May 31,
2002 $1.00 0.02 -- 0.02 (0.02) -- (0.02)
Year Ended May 31,
2001 $1.00 0.05 -- 0.05 (0.05) -- (0.05)
Year Ended May 31,
2000 $1.00 0.05 -- 0.05 (0.05) -- (0.05)
A Shares
Period Ended March 31,
2005** $1.00 0.01 -- 0.01 (0.01) -- (0.01)
Period Ended May 31,
2004(b) $1.00 --* -- --* --* --* --*
VIRGINIA TAX-FREE MONEY MARKET FUND
T Shares
Period Ended March 31,
2005** $1.00 0.01 -- 0.01 (0.01) --* (0.01)
Year Ended May 31,
2004 $1.00 0.01 -- 0.01 (0.01) --* (0.01)
Year Ended May 31,
2003 $1.00 0.01 -- 0.01 (0.01) --* (0.01)
Year Ended May 31,
2002 $1.00 0.01 -- 0.01 (0.01) --* (0.01)
Year Ended May 31,
2001 $1.00 0.03 -- 0.03 (0.03) -- (0.03)
Year Ended May 31,
2000 $1.00 0.03 -- 0.03 (0.03) -- (0.03)
A Shares
Period Ended March 31,
2005** $1.00 0.01 -- 0.01 (0.01) --* (0.01)
Year Ended May 31,
2004 $1.00 --* -- --* --* --* --*
Year Ended May 31,
2003 $1.00 0.01 -- 0.01 (0.01) --* (0.01)
Year Ended May 31,
2002 $1.00 0.01 -- 0.01 (0.01) --* (0.01)
Year Ended May 31,
2001 $1.00 0.03 -- 0.03 (0.03) -- (0.03)
Year Ended May 31,
2000 $1.00 0.03 -- 0.03 (0.03) -- (0.03)
</Table>
+ Total return excludes sales charge. Not annualized for periods less than one
year.
++ Annualized for periods less than one year.
+++ Ratio reflects the impact of the initial low level of average net assets
associated with commencement of operations.
* Amount represents less than $0.005 per share.
** Effective June 1, 2004, the Funds adopted a change in the amortization and
accretion methodology on fixed income securities. (See Note 2.) The
cumulative effect of this change in methodology was immaterial to all Funds.
(a) Commenced operations on October 4, 1999.
(b) Commenced operations on November 12, 2003.
Amounts designated as "--" are either $0 or have been rounded to $0.
41
<Table>
<Caption>
Ratio of Expenses to
Average Net Assets
Net Assets Net Assets, Ratio of Net Expenses Ratio of Net Investment (Excluding Waivers,
Value, End Total End of to Average Net Income to Average Net Reimbursements and
of Period Return+ Period (000) Assets++ Assets++ Expense Offset)++
---------- ------- ------------ --------------------- ----------------------- ---------------------
$1.00 0.99% $1,407,783 0.62% 1.19% 0.71%
$1.00 0.37% $1,233,565 0.66% 0.32% 0.75%
$1.00 0.88% $1,080,779 0.65% 0.81% 0.74%
$1.00 1.96% $ 871,946 0.65% 1.90% 0.74%
$1.00 5.36% $ 733,768 0.66% 5.23% 0.76%
$1.00 4.81% $ 723,277 0.63% 4.71% 0.74%
$1.00 0.88% $ 303 0.75% 0.97% 1.48%
$1.00 0.15% $ 401 0.75% 0.21% 3.17%+++
$1.00 0.94% $ 177,377 0.46% 1.07% 0.46%
$1.00 0.56% $ 173,959 0.50% 0.51% 0.50%
$1.00 0.85% $ 219,701 0.49% 0.84% 0.49%
$1.00 1.44% $ 240,681 0.50% 1.45% 0.50%
$1.00 3.51% $ 226,188 0.50% 3.45% 0.50%
$1.00 3.23% $ 245,243 0.51% 3.19% 0.51%
$1.00 0.77% $ 197,380 0.66% 0.92% 0.86%
$1.00 0.38% $ 118,339 0.67% 0.34% 0.90%
$1.00 0.67% $ 96,325 0.67% 0.66% 0.90%
$1.00 1.27% $ 99,141 0.67% 1.22% 0.90%
$1.00 3.35% $ 93,004 0.66% 3.28% 0.91%
$1.00 3.07% $ 62,878 0.67% 3.17% 0.73%
</Table>
See notes to financial statements.
42
NOTES TO FINANCIAL STATEMENTS
STI CLASSIC FUNDS March 31, 2005
1. Organization
The STI Classic Funds (the "Trust") was organized as a Massachusetts business
trust under a Declaration of Trust dated January 15, 1992. The Trust is
registered under the Investment Company Act of 1940, as amended, as an open-end
management investment company offering 49 funds as of March 31, 2005. The
financial statements presented herein are those of the Prime Quality Money
Market Fund, the Tax-Exempt Money Market Fund, the U.S. Government Securities
Money Market Fund, the U.S. Treasury Money Market Fund and the Virginia Tax-Free
Money Market Fund (each a "Fund" and collectively the "Funds"). The Funds may
offer the following share classes: T Shares, A Shares and L Shares. The Trust is
authorized to issue an unlimited number of shares without par value.
Shareholders have no preemptive rights. The financial statements of the
remaining funds are presented separately. The assets of each Fund are
segregated, and a shareholder's interest is limited to the Fund in which shares
are held. The Funds' prospectus provides a description of the Funds' investment
objectives, policies and strategies.
At a regular meeting of the Board of Trustees (the "Board") on February 15,
2005, the Board voted to change the fiscal and tax year end of the Funds from
May 31 to March 31.
Under the Trust's organizational documents, its officers and trustees are
indemnified against certain liabilities arising out of the performance of their
duties to the Trust. In addition, in the normal course of business, the Trust
enters into contracts with their vendors and others that provide for general
indemnifications. The Trust's maximum exposure under these arrangements is
unknown, as this would involve future claims that may be made against the Trust.
However, based on experience, the Trust expects that risk of loss to be remote.
2. Significant Accounting Policies
The following is a summary of significant accounting policies followed by the
Trust in the preparation of its financial statements. These policies are in
conformity with accounting principles generally accepted in the United States of
America ("GAAP"). The preparation of financial statements in accordance with
GAAP requires management to make estimates and assumptions that affect the
reported amounts of assets and liabilities and disclosure of contingent assets
and liabilities at the date of the financial statements and the reported amounts
of income and expense during the reporting period. The actual results could
differ from these estimates.
Security Valuation -- Investment securities are stated at amortized cost,
which approximates market value. Under the amortized cost method, premium
or discount, if any, is amortized or accreted, respectively, on a constant
basis to the maturity of the security.
Security Transactions and Investment Income -- Security transactions are
accounted for no later than one business day after trade date. However, for
financial reporting purposes, securities transactions are reported on trade
date. Interest income is recognized on an accrual basis. Costs used in
determining net realized gains and losses on the sales of investment
securities are those of the specific securities sold, adjusted
for the accretion or amortization of purchase discounts or premiums during
the respective holding period.
Effective June 1, 2004, the Funds changed their amortization and accretion
methodology on premiums and discounts on fixed income securities in order
to conform more closely to Internal Revenue Code requirements. The
cumulative effect of the accounting change had no impact on total net
assets of each Fund, but resulted in the following reclasses (in
thousands):
<Table>
<Caption>
Change in
Unrealized
Change in Appreciation/
Interest Income (Depreciation)
--------------- --------------
Prime Quality Money
Market Fund........... $ (9) $ 9
Tax-Exempt Money Market
Fund.................. -- --
U.S. Government
Securities Money
Market Fund........... -- --
U.S. Treasury Money
Market Fund........... -- --
Virginia Tax-Free Money
Market Fund........... -- --
</Table>
The statement of changes in net assets and financial highlights for prior
periods have not been restated to reflect this change in accounting
methodology.
43
Repurchase Agreements -- The Funds purchase instruments from financial
institutions, such as banks and broker-dealers, subject to the seller's
agreement to repurchase them at an agreed upon time and price ("repurchase
agreement"). A third party custodian bank takes possession of the
underlying securities ("collateral") of a repurchase agreement, the value
of which exceeds the principal amount of the repurchase transaction,
including accrued interest. In the event of default on the obligation to
repurchase, each Fund has the right to liquidate the collateral and apply
the proceeds in satisfaction of the obligation. In the event of default or
bankruptcy by the counterparty to the agreement, realization and/or
retention of the collateral or proceeds may be subject to legal
proceedings.
Restricted Securities -- Certain of the Funds' investments are restricted
as to resale. The table below shows the number of shares held, the
acquisition date, cost, market value, value per share of such securities
deemed illiquid and percentage of net assets which the securities comprise
as of March 31, 2005 (in thousands):
PRIME QUALITY MONEY MARKET FUND
<Table>
<Caption>
Market
Number Acqui- Value as Value % of
of sition of per Net
Shares Date Cost 03/31/05 Share Assets
------ -------- ------- -------- ----- ------
Branch Banking &
Trust Co., 2.695%,
04/19/05............ 75,000 02/23/05 $75,000 $75,000 $1.00 1.4%
</Table>
Expenses -- Expenses that are directly related to a specific Fund are
charged to that Fund. Class specific expenses, such as distribution fees,
are borne by that class. Other operating expenses of the Trust are
pro-rated to the Funds on the basis of relative net assets or another
appropriate basis.
Classes -- Income and non-class specific expenses are allocated to the
respective classes based on total settled shares outstanding and
realized/unrealized gains and losses are allocated to the respective
classes on the basis of the relative daily net assets.
Dividends and Distributions to Shareholders -- Dividends and distributions
to shareholders are recorded on the ex-dividend date. Dividends from net
investment income of each of the Funds are declared daily and paid monthly.
Any net realized capital gains on sales of securities are distributed to
shareholders at least annually. However, to the extent that net realized
capital gains can be offset by capital loss carryovers, such gains will not
be distributed.
The amounts of dividends from net investment income and of distributions
from net realized gains are determined in accordance with federal income
tax regulations, which may differ from GAAP. These "book/tax" differences
are either considered temporary or permanent in nature. To the extent these
differences are permanent in nature (i.e. gain/loss and distribution), such
amounts are reclassified within the composition of net assets based on
their federal tax-basis treatment; temporary differences do not require
reclassification.
Compensating Balances -- If a Fund has a cash overdraft in excess of
$100,000 it is required to leave 110% in compensating balance with SunTrust
Bank (the "Custodian"), a wholly owned subsidiary of SunTrust Banks, Inc.,
on the following day. If a Fund has a positive cash balance in excess of
$100,000 it is allowed to overdraw 90% of the balance with the Custodian on
the following business day.
3. Agreements and Other Transactions with Affiliates
Investment Advisory Agreement -- The Trust and Trusco Capital Management,
Inc. (the "Investment Adviser"), a wholly owned subsidiary of SunTrust
Banks, Inc., have entered into advisory agreements.
Under terms of the agreements, the Funds are charged the following annual
fees which are computed daily and paid monthly based upon average daily net
assets:
44
NOTES TO FINANCIAL STATEMENTS (continued)
STI CLASSIC FUNDS March 31, 2005
<Table>
<Caption>
Maximum
Annual
Advisory Net Fees Net Fees
Fee Paid 2005 Paid 2004
-------- --------- ---------
Prime Quality Money
Market Fund.......... 0.65% 0.54% 0.54%
Tax-Exempt Money Market
Fund................. 0.55 0.45 0.45
U.S. Government
Securities Money
Market Fund.......... 0.65 0.56 0.56
U.S. Treasury Money
Market Fund.......... 0.65 0.56 0.56
Virginia Tax-Free Money
Market Fund.......... 0.40 0.40 0.40
</Table>
The Investment Adviser has voluntarily agreed to waive all or a portion of
its fees. Fee waivers are voluntary and may be terminated at any time.
Administration, Fund Accounting and Transfer Agency Agreement -- The Trust
and BISYS Fund Services Ohio, Inc. (the "Administrator") are parties to a
Master Services Agreement, under which the Administrator provides
administrative, fund accounting and transfer agent services for an annual
fee (expressed as a percentage of the combined average daily net assets of
the Trust and STI Classic Variable Trust) of: 0.0275% up to $25 billion,
0.0225% on the next $5 billion and 0.0175% for over $30 billion, plus an
additional class fee of $2,500 per class annum, applicable to each
additional class of shares over 145 classes of shares.
Prior to July 26, 2004, SEI Investments Global Funds Services ("SEI")
served as the Administrator and provided administrative services for an
annual fee (expressed as a percentage of the combined average daily net
assets of the Trust and STI Classic Variable Trust) of: 0.12% up to $1
billion, 0.09% on the next $4 billion, 0.07% on the next $3 billion, 0.065%
on the next $2 billion and 0.06% for over $10 billion. SEI had voluntarily
agreed to waive all or a portion of their fees and to reimburse Fund
expenses. For the period June 1, 2004 to July 23, 2004, SEI received fees
totaling $2,333,093 from the Trust for its services.
Per the executed Master Services Agreement, BISYS Fund Services Ohio, Inc.
has agreed to pay a total of $325,000 per annum towards the insurance
premiums payable annually by the Trust and the STI Classic Variable Trust.
$300,000 will be paid towards the premium for the Directors and Officers
Liability/Errors and Omissions Insurance Policy, and $25,000 will be paid
towards the premium for the Fidelity Bond Policy.
Distribution Agreement -- The Trust and BISYS Fund Services Limited
Partnership (the "Distributor") are parties to a Distribution Agreement
effective July 26, 2004. The Distributor will receive no fees for its
distribution services under this agreement for the T Shares of any Fund.
With respect to the A Shares and L Shares, the Distributor receives
amounts, pursuant to a Distribution Plan and (in the case of L Shares) a
Distribution and Service Plan, based upon average daily net assets of each
respective class, which are computed daily and paid monthly, as outlined in
the tables below.
<Table>
<Caption>
Maximum
Maximum Net Net L Share Net Net
A Share Fees Fees Distribution Fees Fees
Distribution Paid Paid and Service Paid Paid
Fee 2005 2004 Fee 2005 2004
------------ ---- ---- ------------ ---- ----
Prime Quality Money
Market Fund......... 0.20% 0.20% 0.18% 0.75% 0.21% 0.20%
Tax-Exempt Money
Market Fund......... 0.15 0.15 0.12 N/A N/A N/A
U.S. Government
Securities Money
Market Fund......... 0.17 0.16 0.14 N/A N/A N/A
U.S. Treasury Money
Market Fund......... 0.15 -- -- N/A N/A N/A
Virginia Tax-Free
Money Market Fund... 0.40 0.20 0.17 N/A N/A N/A
</Table>
The Distributor has voluntarily agreed to waive all or a portion of its
fees. Fee waivers are voluntary and may be terminated at any time.
Prior to July 26, 2004, SEI Investments Distribution Co. served as the
distributor. SEI Investments Distribution Co. had voluntarily agreed to
waive all or a portion of its fees and to reimburse fund expenses.
Transfer Agency Agreement -- The Trust and SunTrust Securities Inc.
("STS"), a wholly-owned subsidiary of SunTrust Banks, Inc., are parties to
an agreement under which STS provides certain
45
transfer agency account activity processing and servicing. The transfer
agency service fees are based upon a monthly per account charge for the
total shareholder accounts at the Trust's transfer agent. These fees are
presented on the Statement of Operations as Transfer Agent Shareholder
Servicing Fees.
Prior to July 26, 2004, Federated Services Company provided transfer agency
services to the Trust.
Custodian Agreement -- SunTrust Bank acts as custodian for all of the
Funds. The custodian is paid on the basis of net assets and transaction
costs of the Funds. The custodian plays no role in determining the
investment policies of the Trust or which securities are to be purchased or
sold in the Funds.
Other -- Certain officers of the Trust are also officers of the Adviser,
Administrator and/or the Distributor. Such officers (with the exception of
the Chief Compliance Officer) receive no fees by the Trust for serving as
officers of the Trust. Each of the eight trustees are compensated $43,000
($344,000 total) and the Chairman of the Board receives $50,000 in meeting
and retainer fees, plus the reimbursement for certain expenses incurred.
Effective October 5, 2004, Trusco Capital Management, Inc. began providing
an employee to serve as Chief Compliance Officer for the Trust and provide
certain related services, and will receive an annual fee for this service
of $120,000. In addition, BISYS provides an employee and staff to serve as
an assistant to the Chief Compliance Officer for the Trust, including
providing certain related services, and will receive a fee for these
services of $150,000. Both fees are allocated across the assets of the
Trust and the STI Classic Variable Trust. For the period ended March 31,
2005, the total related amounts paid by the Trust were $319,892.
The Trust has entered into an agreement with SunTrust Robinson Humphrey, a
division of SunTrust Capital Markets, Inc. which is a direct non-bank
subsidiary of SunTrust Banks, Inc. to act as an agent in placing repurchase
agreements for the Trust. For the period ended March 31, 2005, the
following Funds paid SunTrust Robinson Humphrey through a reduction in the
yield earned by the Funds on those repurchase agreements (in thousands):
<Table>
<Caption>
2005 2004
Fees Fees
---- ----
Prime Quality Money Market Fund........... $ 52 $ 46
U.S. Government Securities Money Market
Fund.................................... 68 128
U.S. Treasury Money Market Fund........... 409 423
</Table>
On March 31, 2005, the U.S. Treasury Money Market Fund had $70,832,825 in
an account at SunTrust Robinson Humphrey that earned $5,106 in interest.
46
NOTES TO FINANCIAL STATEMENTS (continued)
STI CLASSIC FUNDS March 31, 2005
4. Capital Share Transactions
Capital share transactions for the Funds were as follows (in thousands):
<Table>
<Caption>
Prime Quality Tax-Exempt
Money Market Fund Money Market Fund
--------------------------------------- ---------------------------------------
06/01/04- 06/01/03- 06/01/02- 06/01/04- 06/01/03- 06/01/02-
03/31/05 05/31/04 05/31/03 03/31/05 05/31/04 05/31/03
----------- ----------- ----------- ----------- ----------- -----------
Capital Transactions
T Shares
Proceeds from Shares Issued................. $ 3,189,305 $ 3,517,343 $ 4,749,028 $ 1,211,836 $ 1,424,246 $ 1,422,487
Dividends Reinvested........................ 3,021 1,743 3,794 -- -- --
Cost of Shares Redeemed..................... (3,496,078) (4,326,125) (4,375,170) (1,253,857) (1,534,286) (1,241,913)
----------- ----------- ----------- ----------- ----------- -----------
Change in Net Assets from T Shares
Transactions................................ $ (303,752) $ (807,039) $ 377,652 $ (42,021) $ (110,040) $ 180,574
----------- ----------- ----------- ----------- ----------- -----------
A Shares(1)
Proceeds from Shares Issued................. $ 1,229,000 $ 1,045,548 $ 1,009,181 $ 496,256 $ 361,662 $ 247,204
Dividends Reinvested........................ 15,823 6,441 18,722 2,233 937 1,624
Cost of Shares Redeemed..................... (971,800) (1,126,059) (989,190) (370,606) (327,551) (227,422)
----------- ----------- ----------- ----------- ----------- -----------
Change in Net Assets from A Shares
Transactions................................ $ 273,023 $ (74,070) $ 38,713 $ 127,883 $ 35,048 $ 21,406
----------- ----------- ----------- ----------- ----------- -----------
L Shares
Proceeds from Shares Issued................. $ 7,507 $ 56,986 $ 26,381
Dividends Reinvested........................ 92 43 75
Cost of Shares Redeemed..................... (22,949) (46,221) (24,123)
----------- ----------- ----------- ----------- ----------- -----------
Change in Net Assets from L Shares
Transactions................................ $ (15,350) $ 10,808 $ 2,333
----------- ----------- ----------- ----------- ----------- -----------
Change in Net Assets from Capital
Transactions................................ $ (46,079) $ (870,301) $ 418,698 $ 85,862 $ (74,992) $ 201,980
=========== =========== =========== =========== =========== ===========
Share Transactions:
T Shares
Issued...................................... 3,189,305 3,517,343 4,749,028 1,211,837 1,424,246 1,422,487
Reinvested.................................. 3,021 1,743 3,794 -- -- --
Redeemed.................................... (3,496,078) (4,326,125) (4,375,170) (1,253,857) (1,534,286) (1,241,913)
----------- ----------- ----------- ----------- ----------- -----------
Change in T Shares Transactions............... (303,752) (807,039) 377,652 (42,020) (110,040) 180,574
----------- ----------- ----------- ----------- ----------- -----------
A Shares(1)
Issued...................................... 1,229,000 1,045,548 1,009,181 496,256 361,662 247,204
Reinvested.................................. 15,823 6,441 18,722 2,233 937 1,624
Redeemed.................................... (971,800) (1,126,059) (989,190) (370,606) (327,551) (227,422)
----------- ----------- ----------- ----------- ----------- -----------
Change in A Shares Transactions............... 273,023 (74,070) 38,713 127,883 35,048 21,406
----------- ----------- ----------- ----------- ----------- -----------
L Shares
Issued...................................... 7,507 56,986 26,381
Reinvested.................................. 92 43 75
Redeemed.................................... (22,949) (46,221) (24,123)
----------- ----------- ----------- ----------- ----------- -----------
Change in L Shares Transactions............... (15,350) 10,808 2,333
----------- ----------- ----------- ----------- ----------- -----------
Change in Share Transactions.................. (46,079) (870,301) 418,698 85,863 (74,992) 201,980
=========== =========== =========== =========== =========== ===========
</Table>
(1) U.S. Treasury Money Market Fund A Shares commenced operations on November
12, 2003.
47
<Table>
<Caption>
U.S. Government Securities U.S. Treasury Virginia Tax-Free
Money Market Fund Money Market Fund Money Market Fund
- ------------------------------------- --------------------------------------- ---------------------------------
06/01/04- 06/01/03- 06/01/02- 06/01/04- 06/01/03- 06/01/02- 06/01/04- 06/01/03- 06/01/02-
03/31/05 05/31/04 05/31/03 03/31/05 05/31/04 05/31/03 03/31/05 5/31/04 05/31/03
--------- ----------- --------- ----------- ----------- ----------- --------- --------- ---------
$ 1,049,985 $ 1,110,958 $ 966,202 $ 1,291,895 $ 1,849,253 $ 1,327,065 $ 220,098 $ 263,166 $ 341,280
578 406 1,240 100 53 96 200 129 184
(1,148,626) (1,488,621) (972,641) (1,117,246) (1,696,555) (1,118,386) (216,847) (309,014) (362,518)
- ----------- ----------- --------- ----------- ----------- ----------- --------- --------- ---------
$ (98,063) $ (377,257) $ (5,199) $ 174,749 $ 152,751 $ 208,775 $ 3,451 $ (45,719) $ (21,054)
- ----------- ----------- --------- ----------- ----------- ----------- --------- --------- ---------
$ 277,785 $ 352,303 $ 439,242 $ 5 $ 400 $ -- $ 206,304 $ 133,175 $ 114,606
1,737 659 2,037 3 1 -- 1,004 421 654
(283,578) (369,114) (401,037) (106) -- -- (128,240) (111,568) (118,102)
- ----------- ----------- --------- ----------- ----------- ----------- --------- --------- ---------
$ (4,056) $ (16,152) $ 40,242 $ (98) $ 401 $ -- $ 79,068 $ 22,028 $ (2,842)
- ----------- ----------- --------- ----------- ----------- ----------- --------- --------- ---------
- ----------- ----------- --------- ----------- ----------- ----------- --------- --------- ---------
- ----------- ----------- --------- ----------- ----------- ----------- --------- --------- ---------
$ (102,119) $ (393,409) $ 35,043 $ 174,651 $ 153,152 $ 208,775 $ 82,519 $ (23,691) $ (23,896)
=========== =========== ========= =========== =========== =========== ========= ========= =========
1,049,985 1,110,958 966,202 1,291,895 1,849,253 1,327,065 220,098 263,166 341,280
578 406 1,240 100 53 96 200 129 184
(1,148,626) (1,488,621) (972,641) (1,117,246) (1,696,555) (1,118,386) (216,847) (309,014) (362,518)
- ----------- ----------- --------- ----------- ----------- ----------- --------- --------- ---------
(98,063) (377,257) (5,199) 174,749 152,751 208,775 3,451 (45,719) (21,054)
- ----------- ----------- --------- ----------- ----------- ----------- --------- --------- ---------
277,784 352,303 439,242 5 400 -- 206,304 133,175 114,606
1,737 659 2,037 3 1 -- 1,004 421 654
(283,578) (369,114) (401,037) (106) -- -- (128,240) (111,568) (118,102)
- ----------- ----------- --------- ----------- ----------- ----------- --------- --------- ---------
(4,057) (16,152) 40,242 (98) 401 -- 79,068 22,028 (2,842)
- ----------- ----------- --------- ----------- ----------- ----------- --------- --------- ---------
- ----------- ----------- --------- ----------- ----------- ----------- --------- --------- ---------
(102,120) (393,409) 35,043 174,651 153,152 208,775 82,519 (23,691) (23,896)
=========== =========== ========= =========== =========== =========== ========= ========= =========
</Table>
48
NOTES TO FINANCIAL STATEMENTS (concluded)
STI CLASSIC FUNDS March 31, 2005
5. Federal Tax Policies and Information
It is the policy of each Fund to continue to qualify as a regulated investment
company by complying with the provisions available to certain investment
companies as defined in applicable sections of the Internal Revenue Code, and to
make distributions from net investment income and from net realized gains
sufficient to relieve it from all, or substantially all, federal income taxes.
At March 31, 2005, the total cost of securities and the net realized gains or
losses on securities sold for Federal income tax purposes were different from
amounts reported for financial reporting purposes generally due to wash sales
which cannot be used for Federal income tax purposes in the current year and
have been deferred for use in future years. The Federal tax cost and aggregate
gross unrealized appreciation and depreciation for securities held by the Funds
at March 31, 2005, were as follows (in thousands):
<Table>
<Caption>
Aggregate Aggregate Net
Gross Gross Unrealized
Federal Unrealized Unrealized Appreciation/
Tax Cost Appreciation Depreciation (Depreciation)
---------- ------------ ------------ --------------
Prime Quality Money Market Fund............................. $5,345,437 $ -- $ -- $ --
Tax-Exempt Money Market Fund................................ 1,335,816 -- -- --
U.S. Government Securities Money Market Fund................ 748,379 -- -- --
U.S. Treasury Money Market Fund............................. 1,599,641 -- (33) (33)
Virginia Tax-Free Money Market Fund......................... 374,269 -- -- --
</Table>
The tax character of distributions paid to shareholders during the fiscal period
ended March 31, 2005 was as follows (in thousands):
<Table>
<Caption>
Distributions paid from
------------------------------
Net Investment Net Long Term Total Taxable Tax-Exempt Total Distributions
Fund Income Capital Gains Distributions Distributions Paid*
- ---- -------------- ------------- ------------- ------------- -------------------
Prime Quality Money Market Fund............ $47,933 $ -- $47,933 $ -- $47,933
Tax-Exempt Money Market Fund............... 221 210 431 10,358 10,789
U.S. Government Securities Money Market
Fund..................................... 7,574 -- 7,574 -- 7,574
U.S. Treasury Money Market Fund............ 11,628 -- 11,628 -- 11,628
Virginia Tax-Free Money Market Fund........ 77 69 146 2,457 2,603
</Table>
The tax character of distributions paid to shareholders during the fiscal year
ended May 31, 2004 was as follows (in thousands):
<Table>
<Caption>
Distributions paid from
------------------------------
Net Investment Net Long Term Total Taxable Tax-Exempt Total Distributions
Fund Income Capital Gains Distributions Distributions Paid*
- ---- -------------- ------------- ------------- ------------- -------------------
Prime Quality Money Market Fund............ $26,658 $-- $26,658 $ -- $26,658
Tax-Exempt Money Market Fund............... 54 81 135 5,966 6,101
U.S. Government Securities Money Market
Fund..................................... 3,705 -- 3,705 -- 3,705
U.S. Treasury Money Market Fund............ 4,174 6 4,180 -- 4,180
Virginia Tax-Free Money Market Fund........ 28 96 124 1,436 1,560
</Table>
The tax character of distributions paid to shareholders during the fiscal year
ended May 31, 2003 was as follows (in thousands):
<Table>
<Caption>
Distributions paid from
------------------------------
Net Investment Net Long Term Total Taxable Tax-Exempt Total Distributions
Fund Income Capital Gains Distributions Distributions Paid*
- ---- -------------- ------------- ------------- ------------- -------------------
Prime Quality Money Market Fund............ $65,926 $-- $65,926 $ -- $65,926
Tax-Exempt Money Market Fund............... 124 10 134 9,430 9,564
U.S. Government Securities Money Market
Fund..................................... 11,619 -- 11,619 -- 11,619
U.S. Treasury Money Market Fund............ 8,329 -- 8,329 -- 8,329
Virginia Tax-Free Money Market Fund........ 3 4 7 2,611 2,618
</Table>
* Total distributions paid differ from the Statement of Changes in Net Assets
because for tax purposes dividends are recognized when actually paid.
49
As of March 31, 2005 the components of accumulated earnings (deficit) on a tax
basis were as follows (in thousands):
<Table>
<Caption>
Accumulated
Undistributed Undistributed Capital Unrealized
Tax-Exempt Ordinary Accumulated Distributions and Other Appreciation
Fund Income Income Earnings Payable Losses (Depreciation)*
- ---- ------------- ------------- ----------- ------------- ----------- -----------------
Prime Quality Money Market Fund..... $ -- $8,648 $8,648 $(8,721) $ (45) $ --
Tax-Exempt Money Market Fund........ 1,574 -- 1,574 (1,574) -- --
U.S. Government Securities Money
Market Fund........................ -- 1,252 1,252 (1,252) -- --
U.S. Treasury Money Market Fund..... -- 2,253 2,253 (2,191) (165) (33)
Virginia Tax-Free Money Market
Fund............................... 421 -- 421 (416) -- --
<Caption>
Total
Accumulated
Earnings
Fund (Deficit)
- ---- -----------
Prime Quality Money Market Fund..... $(118)
Tax-Exempt Money Market Fund........ --
U.S. Government Securities Money
Market Fund........................ --
U.S. Treasury Money Market Fund..... (136)
Virginia Tax-Free Money Market
Fund............................... 5
</Table>
* The differences between book-basis and tax-basis unrealized appreciation
(depreciation) is attributable primarily to: tax deferral on wash sales and
the difference between book and tax amortization methods for premium and
market discount.
As of the latest tax year end of March 31, 2005, the following Funds had net
capital loss carryovers to offset future net capital gains, if any, to the
extent provided by the Treasury regulations. To the extent that these carryovers
are used to offset future gains, it is probable that the gains so offset will
not be distributed to shareholders:
<Table>
<Caption>
Expires
--------
Fund 2013
- ---- --------
Prime Quality Money Market Fund............................. $ 16,613
U.S. Government Securities Money Market Fund................ 13
U.S. Treasury Money Market Fund............................. 164,782
</Table>
Net capital losses incurred after October 31, and within the taxable year are
deemed to arise on the first business day of the Fund's next taxable year. The
Funds have incurred and will elect to defer capital losses as follows:
<Table>
<Caption>
Capital
Fund Losses
- ---- -------
Prime Quality Money Market Fund............................. $27,896
</Table>
6. Concentrations/Risks
The Funds invest primarily in money market instruments maturing in 397 days or
less whose ratings are within one of the two highest ratings categories assigned
by a nationally recognized statistical rating agency, or, if not rated, are
believed to be of comparable quality. The ability of the issuers of the
securities held by the Funds to meet their obligations may be affected by
economic developments in a specific industry, state or region.
The Virginia Tax-Free Money Market Fund concentrates its investments in
securities of issuers located in a specific region, subjecting the Fund to the
economic and government policies of that region.
Certain securities are backed by letters of credit from various financial
institutions and financial guaranty assurance agencies. These letters of credit
enhance the credit quality of the individual securities; however, if any of the
financial institutions or financial guaranty assurance agencies' credit quality
should deteriorate, it could cause the individual security's credit quality to
change. Additionally, if any of the Funds concentrate their letters of credit in
any one financial institution, the risk of credit quality deterioration
increases.
50
REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM
STI CLASSIC FUNDS March 31, 2005
To the Board of Trustees and Shareholders of
STI Classic Funds:
In our opinion, the accompanying statements of assets and liabilities, including
the schedules of portfolio investments, and the related statements of operations
and of changes in net assets and the financial highlights present fairly, in all
material respects, the financial position of Prime Quality Money Market Fund,
Tax-Exempt Money Market Fund, U.S. Government Securities Money Market Fund, U.S.
Treasury Money Market Fund and Virginia Tax-Free Money Market Fund (five of the
forty-nine funds constituting STI Classic Funds, hereafter referred to as the
"Funds") at March 31, 2005, the results of each of their operations for the
period June 1, 2004 to March 31, 2005 and for the year ended May 31, 2004, the
changes in each of their net assets for the period June 1, 2004 to March 31,
2005 and for each of the two years in the period ended May 31, 2004 and the
financial highlights for the period June 1, 2004 to March 31, 2005 and for each
of the three years in the period ended May 31, 2004, in conformity with
accounting principles generally accepted in the United States of America. These
financial statements and financial highlights (hereafter referred to as
"financial statements") are the responsibility of the Funds' management; our
responsibility is to express an opinion on these financial statements based on
our audits. We conducted our audits of these financial statements in accordance
with the standards of the Public Company Accounting Oversight Board (United
States). Those standards require that we plan and perform the audit to obtain
reasonable assurance about whether the financial statements are free of material
misstatement. An audit includes examining, on a test basis, evidence supporting
the amounts and disclosures in the financial statements, assessing the
accounting principles used and significant estimates made by management, and
evaluating the overall financial statement presentation. We believe that our
audits, which included confirmation of securities at March 31, 2005 by
correspondence with the custodian and brokers, provide a reasonable basis for
our opinion. The financial highlights for each of the two years ended May 31,
2001 were audited by other independent accountants who have ceased operations.
Those independent accountants expressed an unqualified opinion on those
financial statements in their report dated July 18, 2001.
PricewaterhouseCoopers LLP
Philadelphia, Pennsylvania
May 25, 2005
51
TRUSTEES AND OFFICERS OF THE STI CLASSIC FUNDS (UNAUDITED)
- --------------------------------------------------------------------------------
Information pertaining to the trustees of the Trust is set forth below. Trustees
who are not deemed to be "interested persons" of the Trust as defined in the
1940 Act are referred to as "Independent Board Member." Trustees who are deemed
to be "interested persons" of the Trust are referred to as "Interested Board
Member." Messrs. Courts and Ridley are Trustees who may be deemed to be
"interested persons" of the Trust.
- --------------------------------------------------------------------------------
<Table>
<Caption>
TERM OF NUMBER OF
POSITION(S) OFFICE AND PRINCIPAL PORTFOLIOS
NAME, ADDRESS, AND HELD WITH LENGTH OF OCCUPATION(S) OVERSEEN FOR
DATE OF BIRTH THE GROUP TIME SERVED DURING THE PAST 5 YEARS THE TRUST
- ------------------------------------------------------------------------------------------------------
INTERESTED
BOARD MEMBERS*
- --------------
Richard W. Courts, II Trustee Indefinite: Chairman, Atlantic Investment 49
3435 Stelzer Road since Company.
Columbus, OH 43219 November, 2001
01/18/36
- ------------------------------------------------------------------------------------------------------
Clarence H. Ridley Trustee Indefinite: Chairman, Haverty Furniture 49
3435 Stelzer Road since Companies, 2001 to present;
Columbus, OH 43219 November, 2001 Partner, King and Spaulding LLP
06/03/42 (law firm), 1977 to 2000.
- ------------------------------------------------------------------------------------------------------
INDEPENDENT
BOARD MEMBERS
- --------------
Thomas Gallagher Trustee Indefinite: President and CEO, Genuine Parts 49
3435 Stelzer Road since Company.
Columbus, OH 43219 May, 2000
11/25/47
- ------------------------------------------------------------------------------------------------------
F. Wendell Gooch Trustee Indefinite: Retired. 49
3435 Stelzer Road since
Columbus, OH 43219 May, 1992
12/03/32
- ------------------------------------------------------------------------------------------------------
James O. Robbins Trustee Indefinite: President and Chief Executive 49
3435 Stelzer Road since Officer, Cox Communications, Inc.
Columbus, OH 43219 May, 2000
07/04/42
- ------------------------------------------------------------------------------------------------------
Jonathan T. Walton Trustee Indefinite: Retired. 49
3435 Stelzer Road since
Columbus, OH 43219 February, 1998
03/28/30
- ------------------------------------------------------------------------------------------------------
Sidney E. Harris Trustee Indefinite: Professor (since 2004) and Dean 49
3435 Stelzer Road since (1997-2004) of J. Mack Robinson
Columbus, OH 43219 November, 2004 College of Business, Georgia
07/21/49 State University.
- ------------------------------------------------------------------------------------------------------
Warren Y. Jobe Trustee Indefinite: Retired. EVP, Georgia Power Co. 49
3435 Stelzer Road since and SVP, Southern Co.
Columbus, OH 43219 November, 2004 (1998-2001).
11/12/40
- ------------------------------------------------------------------------------------------------------
Charles D. Winslow Trustee Indefinite: Retired. Former Partner, 49
3435 Stelzer Road since Accenture.
Columbus, OH 43219 November, 2004
07/13/35
- ------------------------------------------------------------------------------------------------------
Connie D. McDaniel Trustee Indefinite: Vice President and Controller, 49
3435 Stelzer Road since The Coca-Cola Co.
Columbus, OH 43219 May, 2005
04/10/58
- ------------------------------------------------------------------------------------------------------
<Caption>
OTHER
DIRECTORSHIPS
NAME, ADDRESS, AND HELD BY BOARD
DATE OF BIRTH MEMBER
INTERESTED
BOARD MEMBERS*
- --------------
Richard W. Courts, II Director, Cousins
3435 Stelzer Road Properties, Inc.; Director,
Columbus, OH 43219 Genuine Parts Co.; Director,
01/18/36 Piedmont Medical Center;
Director, SunTrust Bank,
Atlanta; Chairman, Courts
Foundation; Chairman, J.
Bulow Campbell Foundation.
Trustee of STI Classic
Variable Trust.
- -----------------------------------------------------------------------------------
Clarence H. Ridley Director, Crawford & Co.
3435 Stelzer Road Trustee of STI Classic
Columbus, OH 43219 Variable Trust.
06/03/42
- ------------------------------------------------------------------------------------------------------
INDEPENDENT
BOARD MEMBERS
- --------------
Thomas Gallagher Director, NAPA; Director,
3435 Stelzer Road Genuine Parts Co.; Director,
Columbus, OH 43219 Stone Mountain Industrial
11/25/47 Park; Trustee, The Lovett
School; Director, Oxford
Industries. Trustee of STI
Classic Variable Trust.
- ------------------------------------------------------------------------------------------------------
F. Wendell Gooch Trustee of STI Classic
3435 Stelzer Road Variable Trust, and SEI
Columbus, OH 43219 Family of Funds.
12/03/32
- ------------------------------------------------------------------------------------------------------
James O. Robbins Director, National Cable and
3435 Stelzer Road Telecommunications
Columbus, OH 43219 Association; Director, Cable
07/04/42 Labs; Director, C-SPAN;
Director, Discovery Channel;
Trustee, St. Paul's Schools;
Director, Cox
Communications. Trustee of
STI Classic Variable Trust.
- ------------------------------------------------------------------------------------------------------
Jonathan T. Walton Director, Detroit Riverfront
3435 Stelzer Road Conservancy. Trustee of STI
Columbus, OH 43219 Classic Variable Trust
03/28/30
- ------------------------------------------------------------------------------------------------------
Sidney E. Harris Director, ServiceMaster;
3435 Stelzer Road Director, Total System
Columbus, OH 43219 Services, Inc.; Director,
07/21/49 Transamerica Investors, Inc.
Trustee of STI Classic
Variable Trust.
- ------------------------------------------------------------------------------------------------------
Warren Y. Jobe Director, WellPoint, Inc.;
3435 Stelzer Road Director, UniSource Energy
Columbus, OH 43219 Corp.; Director, HomeBanc
11/12/40 Corp. Trustee of STI Classic
Variable Trust.
- ------------------------------------------------------------------------------------------------------
Charles D. Winslow Trustee of STI Classic
3435 Stelzer Road Variable Trust.
Columbus, OH 43219
07/13/35
- ------------------------------------------------------------------------------------------------------
Connie D. McDaniel Trustee of STI Classic
3435 Stelzer Road Variable Trust.
Columbus, OH 43219
04/10/58
- ------------------------------------------------------------------------------------------------------
</Table>
* Mr. Courts may be deemed an interested Trustee because of his directorships
with affiliates of the Adviser. Mr. Ridley may be deemed an interested
Trustee because of a material business relationship with the parent of the
Adviser.
52
TRUSTEES AND OFFICERS OF THE STI CLASSIC FUNDS (UNAUDITED)
- --------------------------------------------------------------------------------
<Table>
<Caption>
TERM OF
OFFICE AND
POSITION(S) LENGTH OF
NAME, ADDRESS, AND HELD WITH TIME PRINCIPAL OCCUPATION(S)
DATE OF BIRTH THE GROUP SERVED DURING THE PAST 5 YEARS
- -----------------------------------------------------------------------------------------------------------------------
OFFICERS
- --------
R. Jeffrey Young President Since 2004 Senior Vice President, Relationship Management, BISYS Fund
3435 Stelzer Road Services since April 2002. Vice President, Client Services,
Columbus, OH 43219 BISYS Fund Services from May 1997 to April 2002.
08/22/64
- -----------------------------------------------------------------------------------------------------------------------
David L. Hughes Treasurer and Since 2005 Vice President, Financial Administration, BISYS Fund
3435 Stelzer Road CFO Services since February 2005. Assistant Vice President,
Columbus, OH 43219 Evergreen Investments from 2000 to 2004; Fund Accounting
01/25/63 Manager, Fidelity Investments from 1998 to 2000.
- -----------------------------------------------------------------------------------------------------------------------
Deborah A. Lamb Executive Vice Since 2003 Chief Compliance Officer and Managing Director of Trusco
50 Hurt Plaza President, Capital Management, Inc. since March 2003 and President of
Atlanta, GA 30303 Assistant Investment Industry Consultants, LLC since June 2000.
10/02/52 Secretary and Director of Compliance at INVESCO, Inc. from March 1995 to
CCO June 2000.
- -----------------------------------------------------------------------------------------------------------------------
Cynthia J. Surprise Secretary Since 2005 Senior Counsel, Legal Services, BISYS Fund Services since
3435 Stelzer Road December 2004. Director and Counsel, Investors Bank & Trust
Columbus, OH 43219 Company from October 1999 to November 2004.
07/08/46
- -----------------------------------------------------------------------------------------------------------------------
Alaina V. Metz Assistant Since 2004 Vice President, Blue Sky Compliance, BISYS Fund Services
3435 Stelzer Road Secretary since January 2002. Chief Administrative Officer, Blue Sky
Columbus, OH 43219 Compliance, BISYS Fund Services from June 1995 to January
04/07/67 2002.
- -----------------------------------------------------------------------------------------------------------------------
Julie M. Powers Assistant Since 2004 Senior Paralegal, Legal Services, BISYS Fund Services since
3435 Stelzer Road Secretary June 2000. Paralegal of Phillips, Lytle, Hitchcock, Blaine &
Columbus, OH 43219 Huber LLP from March 1998 to June 2000.
10/08/69
- -----------------------------------------------------------------------------------------------------------------------
</Table>
53
EXPENSE EXAMPLES (UNAUDITED)
- --------------------------------------------------------------------------------
As a shareholder of the STI Classic Funds, you incur two types of costs: (1)
transaction costs, including sales charges; and redemption fees; (2) ongoing
costs, including management fees; distribution [and/or service] 12b-1 fees; and
other Fund expenses. This example is intended to help you understand your
ongoing costs (in dollars) of investing in the STI Classic Funds and to compare
these costs with the ongoing costs of investing in other mutual funds.
The Example is based on an investment of $1,000 invested at the beginning of the
period and held for the entire period from October 1, 2004 through March 31,
2005.
Actual Expenses
The table below provides information about actual account values and actual
expenses. You may use the information below, together with the amount you
invested, to estimate the expenses that you paid over the period. Simply divide
your account value by $1,000 (for example, an $8,600 account value divided by
$1,000 = 8.6), then multiply the result by the number in the table under the
heading entitled "Expenses Paid During Period" to estimate the expenses you paid
on your account during this period.
<Table>
<Caption>
Beginning Ending Expense Paid Expense Ratio
Account Value Account Value During Period* During Period**
10/01/04 3/31/05 10/01/04-3/31/05 10/01/04-3/31/05
Fund ------------- ------------- ----------------- -----------------
Prime Quality Money Market Fund...... T Shares $1,000.00 $1,008.40 $3.00 0.60%
A Shares 1,000.00 1,007.40 4.00 0.80%
L Shares 1,000.00 1,007.40 4.00 0.80%
Tax-Exempt Money Market Fund......... T Shares 1,000.00 1,006.70 2.50 0.50%
A Shares 1,000.00 1,005.90 3.25 0.65%
U.S. Government Securities Money
Market Fund........................ T Shares 1,000.00 1,007.70 3.05 0.61%
A Shares 1,000.00 1,006.80 3.90 0.78%
U.S. Treasury Money Market Fund...... T Shares 1,000.00 1,007.70 3.05 0.61%
A Shares 1,000.00 1,007.00 3.75 0.75%
Virginia Tax-Free Money Market
Fund............................... T Shares 1,000.00 1,007.00 2.30 0.46%
A Shares 1,000.00 1,006.00 3.30 0.66%
</Table>
- ---------------
* Expenses are equal to the average account value times the Fund's annualized
expense ratio multiplied by the number of days in the most recent half-year
divided by the number of days in the year.
** Annualized.
Hypothetical Example
The table below provides information about hypothetical account values and
hypothetical expenses based on each STI Classic Funds' actual expense ratio and
an assumed rate of return of 5% per year before expenses, which is not the
Fund's actual return. The hypothetical account values and expenses may not be
used to estimate the actual ending account balance or expenses you paid for the
period. You may use this information to compare this 5% hypothetical example
with the 5% hypothetical examples that appear in the shareholder reports of
other funds.
Please note that the expenses shown in the table are meant to highlight your
ongoing costs only and do not reflect any transactional costs. 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.
54
EXPENSE EXAMPLES (UNAUDITED)
- --------------------------------------------------------------------------------
<Table>
<Caption>
Beginning Ending Expense Paid Expense Ratio
Account Value Account Value During Period* During Period**
10/01/04 3/31/05 10/01/04-3/31/05 10/01/04-3/31/05
Fund ------------- -------------- ---------------- ------------------
- ----
Prime Quality Money Market Fund......... T Shares $1,000.00 $1,021.94 $3.02 0.60%
A Shares 1,000.00 1,020.94 4.03 0.80%
L Shares 1,000.00 1,020.94 4.03 0.80%
Tax-Exempt Money Market Fund............ T Shares 1,000.00 1,022.44 2.52 0.50%
A Shares 1,000.00 1,021.69 3.28 0.65%
U.S. Government Securities Money Market
Fund.................................. T Shares 1,000.00 1,021.89 3.07 0.61%
A Shares 1,000.00 1,021.04 3.93 0.78%
U.S. Treasury Money Market Fund......... T Shares 1,000.00 1,021.89 3.07 0.61%
A Shares 1,000.00 1,021.19 3.78 0.75%
Virginia Tax-Free Money Market Fund..... T Shares 1,000.00 1,022.64 2.32 0.46%
A Shares 1,000.00 1,021.64 3.33 0.66%
</Table>
- ---------------
* Expenses are equal to the average account value times the Fund's annualized
expense ratio multiplied by the number of days in the most recent half-year
divided by the number of days in the year.
** Annualized.
55
SPECIAL MEETING OF SHAREHOLDERS (UNAUDITED)
A special meeting of the shareholders of STI Classic Funds (the "Funds") was
held on November 15, 2004. At the meeting shareholders voted and approved the
following proposal:
Proposal 1: To consider and vote on the election of members to the Board
of Trustees of the Trust.
The results of this meeting are presented below:
<Table>
<Caption>
RICHARD W. COURTS, II
- --------------------------------------------------------------------------------------------------------
# OF SHARES % OF OUTSTANDING SHARES % OF SHARES PRESENT
----------------- ----------------------- -------------------
Affirmative.......................... 8,643,079,484.413 57.607% 99.775%
Withhold............................. 19,527,110.520 .130% .225%
Total................................ 8,662,606,594.933 57.737% 100.000%
</Table>
<Table>
<Caption>
THOMAS C. GALLAGHER
- --------------------------------------------------------------------------------------------------------
# OF SHARES % OF OUTSTANDING SHARES % OF SHARES PRESENT
----------------- ----------------------- -------------------
Affirmative.......................... 8,647,093,895.243 57.634% 99.821%
Withhold............................. 15,512,699.690 .103% .179%
Total................................ 8,662,606,594.933 57.737% 100.000%
</Table>
<Table>
<Caption>
F. WENDELL GOOCH
- --------------------------------------------------------------------------------------------------------
# OF SHARES % OF OUTSTANDING SHARES % OF SHARES PRESENT
----------------- ----------------------- -------------------
Affirmative.......................... 8,646,942,792.353 57.632% 99.819%
Withhold............................. 15,663,802.580 .105% .181%
Total................................ 8,662,606,594.933 57.737% 100.000%
</Table>
<Table>
<Caption>
SIDNEY E. HARRIS
- --------------------------------------------------------------------------------------------------------
# OF SHARES % OF OUTSTANDING SHARES % OF SHARES PRESENT
----------------- ----------------------- -------------------
Affirmative.......................... 8,643,726,038.293 57.611% 99.782%
Withhold............................. 18,880,556.640 .126% .218%
Total................................ 8,662,606,594.933 57.737% 100.000%
</Table>
<Table>
<Caption>
WARREN Y. JOBE
- --------------------------------------------------------------------------------------------------------
# OF SHARES % OF OUTSTANDING SHARES % OF SHARES PRESENT
----------------- ----------------------- -------------------
Affirmative.......................... 8,643,699,091.683 57.611% 99.782%
Withhold............................. 18,907,503.250 .126% .218%
Total................................ 8,662,606,594.933 57.737% 100.000%
</Table>
<Table>
<Caption>
CLARENCE H. RIDLEY
- --------------------------------------------------------------------------------------------------------
# OF SHARES % OF OUTSTANDING SHARES % OF SHARES PRESENT
----------------- ----------------------- -------------------
Affirmative.......................... 8,643,065,943.353 57.607% 99.774%
Withhold............................. 19,540,651.580 .130% .226%
Total................................ 8,662,606,594.933 57.737% 100.000%
</Table>
<Table>
<Caption>
JAMES O. ROBBINS
- --------------------------------------------------------------------------------------------------------
# OF SHARES % OF OUTSTANDING SHARES % OF SHARES PRESENT
----------------- ----------------------- -------------------
Affirmative.......................... 8,643,422,544.023 57.609% 99.779%
Withhold............................. 19,184,050.910 .128% .221%
Total................................ 8,662,606,594.933 57.737% 100.000%
</Table>
56
SPECIAL MEETING OF SHAREHOLDERS (UNAUDITED)
<Table>
<Caption>
JONATHAN T. WALTON
- --------------------------------------------------------------------------------------------------------
# OF SHARES % OF OUTSTANDING SHARES % OF SHARES PRESENT
----------------- ----------------------- -------------------
Affirmative.......................... 8,647,114,982.373 57.634% 99.821%
Withhold............................. 15,491,612.560 .103% .179%
Total................................ 8,662,606,594.933 57.737% 100.000%
</Table>
<Table>
<Caption>
CHARLES D. WINSLOW
- --------------------------------------------------------------------------------------------------------
# OF SHARES % OF OUTSTANDING SHARES % OF SHARES PRESENT
----------------- ----------------------- -------------------
Affirmative.......................... 8,643,530,202.353 57.610% 99.780%
Withhold............................. 19,076,392.580 .127% .220%
Total................................ 8,662,606,594.933 57.737% 100.000%
</Table>
PROXY VOTING
Information regarding the policies and procedures that the Funds use to
determine how to vote proxies relating to portfolio securities during the period
ended March 31, 2005 is available (1) without charge, upon request, by calling
1-800-428-6970, or on the Funds' website at www.sticlassicfunds.com, and (2) on
the Securities and Exchange Commission's website at www.sec.gov.
OTHER INFORMATION
The Funds file a complete list of their portfolio holdings with the Securities
and Exchange Commission for the first and third quarters of each fiscal year on
Form N-Q. Forms N-Q are available free of charge on the Securities and Exchange
Commission's website at www.sec.gov. You may also review, or for a fee, copy
those documents by visiting the Securities and Exchange Commission's Public
Reference Room in Washington, D.C. Information on the operation of the Public
Reference Room may be obtained by calling the Securities and Exchange Commission
at 1-800-SEC-0330.
57
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58
(This page intentionally left blank.)
59
2005 ANNUAL REPORT
------------------
STI CLASSIC INSTITUTIONAL FUNDS
-------------------------------
March 31, 2005
[STI CLASSIC FUNDS LOGO]
TABLE OF CONTENTS
- --------------------------------------------------------------------------------
STI CLASSIC INSTITUTIONAL FUNDS ANNUAL REPORT, MARCH 31, 2005
President and CIO Letter to Shareholders .................................... 1
MANAGEMENT DISCUSSION AND ANALYSIS
Classic Institutional Core Bond Fund ........................................ 3
Classic Institutional High Quality Bond Fund ................................ 5
Classic Institutional Intermediate Bond Fund ................................ 7
Classic Institutional Limited Duration Fund ................................. 9
Classic Institutional Short-Term Bond Fund .................................. 11
Classic Institutional Super Short Income Plus Fund .......................... 13
Classic Institutional Total Return Bond Fund ................................ 15
Classic Institutional U.S. Government Securities Super Short Income Plus Fund 17
Seix Institutional High Yield Fund .......................................... 19
Classic Institutional Cash Management Money Market Fund ..................... 21
Classic Institutional U.S. Government Securities Money Market Fund .......... 22
Classic Institutional U.S. Treasury Securities Money Market Fund ............ 23
SCHEDULE OF PORTFOLIO INVESTMENTS ........................................... 24
Notes to Schedule of Portfolio Investments .................................. 68
Statements of Assets and Liabilities ........................................ 69
Statements of Operations .................................................... 73
Statements of Changes in Net Assets ......................................... 77
Financial Highlights ........................................................ 81
Notes to Financial Highlights ............................................... 87
Notes to Financial Statements ............................................... 88
Report of Independent Registered Public Accounting Firm .....................105
Trustees and Officers of the STI Classic Funds ..............................106
Expense Examples ............................................................108
Special Meeting of Shareholders .............................................111
PRESIDENT AND CIO LETTER TO SHAREHOLDERS
- --------------------------------------------------------------------------------
March 31, 2005
Dear Valued STI Classic Funds Shareholder,
The STI Classic Funds changed its official fiscal year end from May 31 to
March 31. As a result, the "annual" shareholder letter this year will cover the
10 month period from June 1, 2004 through March 31, 2005. A great many
pressures, policies, and events took place during this shorter time frame, and
we will provide our perspective on how this has affected the direction and pace
of the economy and financial markets.
Amid a firming economic backdrop and despite rising "headwinds," both the
equity and bond markets registered net gains in the 10 month period ended March
31, 2005. The large-cap benchmark S&P 500 stock index rose 6.9% on a total
return basis, while the Lehman Aggregate Bond Index gained 4.3%, though the path
to both performances was anything but straight. Equities hovered in a trading
range through the summer, before enjoying a post-election rally, while bond
yields fell steadily through October, before bottoming and moving higher in the
first quarter this year.
The economy demonstrated slow but steady and sustainable improvement throughout
the past 10 months. For example, the stimulative effects of the previous tax
cuts and mortgage rate declines faded as expected, and were gradually replaced
with employment and income gains. Headline inflation remained near cycle lows
for much of the period, though a combination of higher oil prices and emerging
corporate pricing power signaled a turning point and an emerging upward trend.
While the handoff from stimulus to sustainability was not exactly smooth, the
evidence was adequate to convince the Federal Reserve Board (the "Fed") that the
downside risks to the expansion were sufficiently reduced to begin raising
short-term interest rates from the 1% low. Over the ensuing months, the Fed
raised the overnight fed funds rate a total of seven times to 2.75% by March 31.
Several headwinds emerged as visible sources of restraint on growth during the
period, and their influence persists today. These include:
- - Higher energy prices: reduces discretionary income and raises operating
costs
- - Rising interest rates: raises cost of capital and slows housing
- - Weaker dollar: raises the costs of imports and keeps upward pressure on
rates
- - Lower federal deficit: reduction of stimulus to supplement internal
economic strength
In the fixed-income markets, three important trends affected relative
performance and our strategy. The first trend was higher short-term interest
rates and the flattening effect exerted on the shape of the yield curve. The
spread between short and long maturity rates was near an extreme level, so we
implemented a "barbell" maturity structure in our bond portfolios to take
advantage of this possibility. The second factor was a further narrowing in the
credit yield spread between Treasury and Corporate securities, due to signs of
economic strength and improving liquidity. We maintained overweight positions in
corporate bonds for much of the time to take advantage of this relative
outperformance. Finally, the rising risk of higher inflation, combined with
favorable supply/demand factors prompted us to establish an overweight position
in Treasury Inflation-Index Securities, commonly referred to as TIPS. These
strategies proved helpful to our shareholders as longer and shorter-term
securities outperformed the middle of the yield curve, and corporate bonds
outperformed Treasuries.
In the equity markets, oil and commodity price increases dominated stock
performance. Energy stocks were the dominant sector, increasing 44% during the
10 months, followed by utilities (+28%) and materials (+20%), though these last
two sectors have relatively small market capitalizations. Performance in the
larger technology (-3%), health care (-1%), and finance (2%) sectors lagged.
The surge in energy stocks helped the value style outperform growth, while
international stocks significantly outperformed the S&P 500. Also, small-cap
stocks extended their outperformance string versus large-caps.
1
- --------------------------------------------------------------------------------
Looking ahead, we remain positive on the outlook for the economy and corporate
profits, but the rate of growth in both is likely to slow closer to historical
averages, due to rising interest rates and more difficult comparisons,
respectively. Economic growth may slow temporarily over the near term, but we
expect real Gross Domestic Product(1) growth rate to match or slightly exceed
the 3.0% average. We believe core inflation may trend moderately higher,
supporting the Fed's plan to raise interest rates gradually in the months ahead,
and the dollar could be under downward pressure.
We believe equities can perform well relative to bonds in the projected
environment, despite the headwinds discussed above, though the sectors with the
strongest returns are likely to be quite different from those of the past 10
months. In the bond markets, we see continuing growth and emerging inflation
pushing bond yields moderately higher. However, with the yield curve relatively
flat and credit yield spreads at narrow levels, relative outperformance in
bonds, like stocks, should come from different sectors in the period ahead.
In closing, we want to take this opportunity to thank you again for investing in
STI Classic Funds. We are continuing efforts to broaden fund offerings and
expand choices, while maintaining our unwavering commitment to the strong,
independent research and consistent investment discipline that has helped make
STI Classic Funds a premier source of value for our clients.
Sincerely,
/s/ Douglas S. Phillips
Douglas S. Phillips, CFA
President and Chief Investment Officer Trusco
Capital Management
(1) The Gross Domestic Product ("GDP") measures the market value of the goods
and services produced by labor and property in the United States.
2
CLASSIC INSTITUTIONAL CORE BOND FUND
- --------------------------------------------------------------------------------
PORTFOLIO MANAGER(S)
- - John Talty, CFA
- - Perry Troisi
- --------------------------------------------------------------------------------
INVESTMENT CONCERNS
- --------------------------------------------------------------------------------
Mutual fund investing involves risk, including possible loss of principal. Bond
funds will tend to experience smaller fluctuations in value than stock funds.
However, investors in any bond fund should anticipate fluctuations in price,
especially for longer-term issues and in environments of rising interest rates.
- --------------------------------------------------------------------------------
MANAGEMENT DISCUSSION & ANALYSIS
- --------------------------------------------------------------------------------
Q: HOW DID THE FUND PERFORM AGAINST ITS BENCHMARK FOR THE PERIOD ENDED
MARCH 31, 2005?
A: The Fund had excellent returns for the 5 month period from October 31, 2004
to March 31, 2005 at 0.09% (Institutional Shares) versus -0.37% for the
Lehman Brothers U.S. Aggregate Bond Index. This period was a market
environment where credit quality continued to improve, demand for fixed
income investments was significantly greater than supply, and the yield
curve flattened dramatically as the Federal Reserve Board (the "Fed")
increased short-term rates higher while longer term rates actually fell.
Q: WHAT FACTORS INFLUENCED THE FUND'S PERFORMANCE FOR THE PERIOD ENDED
MARCH 31, 2005?
A: In the environment of tightening credit spreads, our over-weight in
corporate securities significantly impacted performance. Our yield curve
structure ("barbell") also impacted performance, however, we believe our
exposure to TIPS benefited the portfolio.(1)
Q: HOW DO YOU PLAN TO POSITION THE FUND, BASED ON MARKET CONDITIONS?
A: We believe the current environment presents a possible opportunity to
generate excess return. We feel we are limiting our exposure to expensive
sectors. Spreads across all major quality classes have tightened to levels
not seen since the mid to late 1990's. We underweighted corporate
securities and mortgage backed securities. With spreads as tight as they
are, coupon income is minimal while providing a more compelling near-term
risk/and reward profile. With the yield curve having flattened at a nearly
unprecedented rate, we recently removed the yield curve trade as we believe
further upside appears to be limited. In our opinion, the most
opportunistic exposure continues to be found in TIPS, a sector where we
still see value, as inflation protection has now shifted to the forefront
of the Fed's focus.(1)
[PIE CHART]
PORTFOLIO COMPOSITION (as of March 31, 2005)(1)
as a percentage of total investments
GNMA 0.8%
Asset Backed Securities 1.4%
Cash Equivalents 8.8%
FNMA 11.7%
FHLMC 12.4%
Corporate Bonds 17.6%
U.S. Treasury Instruments 47.3%
(1) PORTFOLIO COMPOSITION IS SUBJECT TO CHANGE
3
CLASSIC INSTITUTIONAL CORE BOND FUND
- --------------------------------------------------------------------------------
GROWTH OF $1,000,000 INVESTMENT (as of March 31, 2005)
[GRAPH IN MILLIONS OF DOLLARS]
Lehman Brothers Classic Institutional
U.S. Aggregate Core Bond Fund
Bond Index (Institutional Shares)
---------- ----------------------
12/30/97 1.0000 1.0000
1.01555 1.018
1.03928 1.0409
1.08322 1.074
1.08687 1.0803
1.08148 1.0792
1.07197 1.0667
1.07925 1.0729
12/99 1.07793 1.0746
1.10172 1.0899
1.12091 1.1076
1.15469 1.1424
1.20325 1.1864
1.23978 1.222
1.24677 1.2315
1.30426 1.2838
12/01 1.30486 1.2674
1.30608 1.2654
1.35433 1.3031
1.41638 1.3349
1.43867 1.3635
1.4587 1.3847
1.49518 1.4247
1.49301 1.4235
12/03 1.49772 1.4291
1.53754 1.464
1.49997 1.4323
1.54792 1.4771
1.5627 1.4947
03/05 1.5552 1.49
This chart assumes an initial hypothetical investment of $1,000,000 made on
12/30/97. Total return is based on net change in N.A.V. (net asset value)
assuming reinvestment of distributions. Returns shown on this page include
reinvestment of all dividends and other distributions.
The Funds performance is compared to the Lehman Brothers U.S. Aggregate Bond
Index a widely-recognized index of U.S. Treasury and agency securities,
corporate bond issues, mortgage-backed securities, asset-backed securities and
corporate mortgage-backed securities. The index is unmanaged and does not
reflect the deduction of fees or taxes associated with a mutual fund, such as
investment management and fund accounting fees. Investors cannot invest directly
in an index, although they can invest in its underlying securities.
AVERAGE ANNUAL TOTAL RETURNS AS OF 3/31/05 (%)
---------------------------------------------------------------------
INCEPTION SINCE
CLASSIC INSTITUTIONAL CORE BOND FUND DATE+ 5 MONTH** 1 YEAR 3 YEAR 5 YEAR INCEPTION
- -------------------------------------------------------------------------------------------------------------------------------
INSTITUTIONAL SHARES 12/30/97 0.09 1.77 5.60 6.45 5.65
T SHARES 10/11/04 0.03 1.69 5.57 6.44 5.64
L SHARES WITHOUT CDSC 10/11/04 -0.17 1.47 5.49 6.39 5.61
WITH CDSC* -2.13 -0.49 5.49 6.39 5.61
A SHARES WITHOUT SALES CHARGE 01/25/02 -0.11 1.35 5.23 6.24 5.51
WITH SALES CHARGE* -3.83 -2.44 3.91 5.43 4.95
LEHMAN BROTHERS U.S. AGGREGATE BOND INDEX -0.37 1.15 5.99 7.14 --
PAST PERFORMANCE DOES NOT GUARANTEE FUTURE RESULTS. THE PERFORMANCE DATA QUOTED
REPRESENTS PAST PERFORMANCE AND CURRENT RETURNS MAY BE LOWER OR HIGHER. TOTAL
RETURN FIGURES INCLUDE CHANGE IN SHARE PRICE, REINVESTMENT OF DIVIDENDS AND
CAPITAL GAINS AND DO NOT REFLECT TAXES THAT A SHAREHOLDER WOULD PAY ON FUND
DISTRIBUTIONS OR ON THE REDEMPTION OF FUND SHARES. THE INVESTMENT RETURN AND
PRINCIPAL VALUE WILL FLUCTUATE SO THAT AN INVESTOR'S SHARES, WHEN REDEEMED MAY
BE WORTH MORE OR LESS THAN THE ORIGINAL COST. FOR PERFORMANCE DATA CURRENT TO
THE MOST RECENT MONTH END, VISIT OUR WEBSITE AT WWW.STICLASSICFUNDS.COM.
*CLASS A SHARE PERFORMANCE REFLECTS THE MAXIMUM FRONT-END SALES CHARGE OF 3.75%
AND CLASS L SHARES REFLECTS THE MAXIMUM CDSC (CONTINGENT DEFERRED SALES CHARGE)
OF 2.00% IN YEAR ONE ONLY.
**AGGREGATE TOTAL RETURN
+ The quoted returns reflect the performance from December 30, 1997 to
October 11, 2004 of the Seix Core Bond Fund, an open-end investment company
that was the predecessor fund to the Classic Institutional Core Bond Fund.
Performance for the Institutional Shares, which commenced operations on
October 11, 2004, is the historical performance of the Seix Core Bond Fund's
Class I Shares prior to that date.
Performance for the Class T and L Shares, which commenced operations on
October 11, 2004, is the historical performance of the Seix Core Bond Fund's
Class I Shares prior to that date. The historical performance has not been
adjusted to reflect the Fund's T or L Share expenses. If it had been, the
performance would have been lower.
The Class A Shares began operating on October 11, 2004. Performance between
December 30, 1997 to January 25, 2002 and January 25, 2002 to October 11, 2004
is that of the Class I Shares and Class P Shares, respectively, of the Seix
Core Bond Fund, the Fund's predecessor. The performance of the predecessor
fund's Class I Shares has not been adjusted to reflect the Fund's A Share
expenses. If it had been, the performance would have been lower.
4
CLASSIC INSTITUTIONAL HIGH QUALITY BOND FUND
- --------------------------------------------------------------------------------
PORTFOLIO MANAGER(S)
- - Perry Troisi
- -Adrien Webb, CFA
- --------------------------------------------------------------------------------
INVESTMENT CONCERNS
- --------------------------------------------------------------------------------
Bonds offer a relatively stable level of income, although bond prices will
fluctuate providing the potential for principal gain or loss. Intermediate-term,
higher-quality bonds generally offer less risk than longer-term bonds and a
lower rate of return.
Although the Fund's yield may be higher than that of fixed income funds that
purchase higher-rated securities, the potentially higher yield is a function of
the greater risk that the Fund's share price will decline.
- --------------------------------------------------------------------------------
MANAGEMENT DISCUSSION & ANALYSIS
- --------------------------------------------------------------------------------
Q: HOW DID THE FUND PERFORM IN COMPARISON TO IT'S BENCHMARK FOR THE PERIOD
ENDED MARCH 31, 2005?
A: The Fund underperformed its benchmark, generating a total return of 2.30%
(Institutional Shares), compared to a 3.85% return for the benchmark, the
Lehman Brothers U.S. Government/Credit A+ Index for the 10 month period
ended March 31, 2005. The fixed income markets surprised on the upside in
2005, as longer-term interest rates remained steady despite the Federal
Reserve Board's (the "Fed") shift in policy, which began increasing short
term interest rates in mid-2004. The credit sector of the market also
performed very well for most of the period as economic strength translated
into improved credit fundamentals and risk premiums declined.
Q: WHAT FACTORS INFLUENCED THE FUND'S PERFORMANCE FOR THE PERIOD ENDED MARCH
31, 2005?
A: We believe the two most important factors which influenced the Fund's
performance were yield curve strategies and holdings of Treasury Inflation
Protected Securities ("TIPS"). The historically steep yield curve in place
at the time the Fed began tightening monetary policy by increasing short
term interest rates prompted us to position the portfolio across the yield
curve to benefit from a flattening of the yield curve. This proved to be a
rewarding strategy as the shorter-term rates rose and longer-term rates
were relatively unchanged during the period. We believe our exposure to
TIPS also enhanced the Fund's relative performance.1
Q: HOW DO YOU PLAN TO POSITION THE FUND, BASED ON MARKET CONDITIONS?
A: We believe the Fed is committed to its current course of action, pushing
short-term rates higher in a measured fashion. We believe the corresponding
yield curve flattening is largely complete, and thus yield curve strategies
could be limited in the near term. We remain cautious in the high quality
credit sector due to rich valuations. We prefer to hold Treasuries until
incremental pricing spreads for corporate and agency bonds broaden. In the
U.S. government sector, TIPS remain a core holding. With incremental
spreads from non-Treasuries so narrow, the result should be modest and
could provide downside protection should the fundamental environment
deteriorate or volatility increases.(1)
[PIE CHART]
PORTFOLIO COMPOSITION (as of March 31, 2005)(1)
as a percentage of total investments
U.S. Treasury Instruments 71.6%
Corporate Bonds 25.2%
Cash Equivalents 2.3%
FNMA 0.9%
(1)PORTFOLIO COMPOSITION IS SUBJECT TO CHANGE
5
CLASSIC INSTITUTIONAL HIGH QUALITY BOND FUND
- --------------------------------------------------------------------------------
GROWTH OF $1,000,000 INVESTMENT (as of March 31, 2005)
[GRAPH IN MILLIONS OF DOLLARS]
Classic Institutional
Lehman Brothers High Quality
U.S. Government/ Bond Fund
Credit A+ Index (Institutional Shares)
--------------- ----------------------
10/29/03 1.0000 1.0000
12/03 1.01052 1.0073
1.01918 1.011
1.03154 1.0198
1.04089 1.0247
1.00928 1.0014
1.00476 .996300
1.00878 .999300
1.0187 1.0076
1.03938 1.022
1.04218 1.0236
1.05087 1.0296
1.03873 1.0224
12/04 1.04873 1.0282
1.0556 1.0296
1.04831 1.0239
03/05 1.04348 1.0193
This chart assumes an initial hypothetical investment of $1,000,000 made on
10/29/03. Total return is based on net change in N.A.V. (net asset value)
assuming reinvestment of distributions. Returns shown on this page include
reinvestment of all dividends and other distributions.
The Funds performance is compared to the Lehman Brothers U.S. Government/Credit
A+ Index which consists of is composed of all bonds that are investment grade,
rated Baa or higher by Moody's or BBB or higher by Standard & Poor's, if unrated
by Moody's. Issues must have at least one year to maturity. Total return
comprises price appreciation/depreciation and income as a percentage of the
original investment.
The index is unmanaged and does not reflect the deduction of fees or taxes
associated with a mutual fund, such as investment management and fund accounting
fees. Investors cannot invest directly in an index, although they can invest in
its underlying securities.
AVERAGE ANNUAL TOTAL RETURNS AS OF 3/31/05 (%)
----------------------------------------------
CLASSIC INSTITUTIONAL
HIGH QUALITY BOND FUND INCEPTION DATE 10 MONTH* 1 YEAR SINCE INCEPTION
- -------------------------------------------------------------------------------------------------------------------------
INSTITUTIONAL SHARES 10/29/03 2.30 -0.53 1.35
T SHARES 11/13/03 2.26 -0.60 1.25
LEHMAN BROTHERS GOVERNMENT/
CREDIT A+ INDEX 3.85 0.25 --
PAST PERFORMANCE DOES NOT GUARANTEE FUTURE RESULTS. THE PERFORMANCE DATA QUOTED
REPRESENTS PAST PERFORMANCE AND CURRENT RETURNS MAY BE LOWER OR HIGHER. TOTAL
RETURN FIGURES INCLUDE CHANGE IN SHARE PRICE, REINVESTMENT OF DIVIDENDS AND
CAPITAL GAINS AND DO NOT REFLECT TAXES THAT A SHAREHOLDER WOULD PAY ON FUND
DISTRIBUTIONS OR ON THE REDEMPTION OF FUND SHARES. THE INVESTMENT RETURN AND
PRINCIPAL VALUE WILL FLUCTUATE SO THAT AN INVESTOR'S SHARES, WHEN REDEEMED MAY
BE WORTH MORE OR LESS THAN THE ORIGINAL COST. FOR PERFORMANCE DATA CURRENT TO
THE MOST RECENT MONTH END, VISIT OUR WEBSITE AT WWW.STICLASSICFUNDS.COM.
*AGGREGATE TOTAL RETURN
6
CLASSIC INSTITUTIONAL INTERMEDIATE BOND FUND
- --------------------------------------------------------------------------------
PORTFOLIO MANAGER(S)
- - John Talty, CFA
- - Perry Troisi
- --------------------------------------------------------------------------------
INVESTMENT CONCERNS
- --------------------------------------------------------------------------------
Mutual fund investing involves risk, including possible loss of principal. Bond
funds will tend to experience smaller fluctuations in value than stock funds.
However, investors in any bond fund should anticipate fluctuations in price,
especially for longer-term issues and in environments of rising interest rates.
- --------------------------------------------------------------------------------
MANAGEMENT DISCUSSION & ANALYSIS
- --------------------------------------------------------------------------------
Q: HOW DID THE FUND PERFORM IN COMPARISON TO IT'S BENCHMARK FOR THE PERIOD
ENDED MARCH 31, 2005?
A: The Fund outperformed its benchmark for the 5 months ended March 31, 2005,
generating a total return of -0.75% (Institutional Shares) compared to a
-1.10% return for the Lehman Brothers Intermediate Government/Credit Index.
The Federal Reserve Board's (the "Fed") shift in policy which began
increasing short term interest rates in mid-2004 drove rates higher across
the intermediate part of the yield curve and resulted in negative returns
for the latter part of 2004 and the first quarter of 2005. The credit
sector of the market performed very well for most of the period as economic
strength translated into improved credit fundamentals and risk premiums
declined.
Q: WHAT FACTORS INFLUENCED THE FUND'S PERFORMANCE FOR THE PERIOD ENDED MARCH
31, 2005?
A: We believe the most important factors which influenced the Fund's
performance were yield curve strategy, credit sector weighting, security
selection, and holdings of Treasury Inflation Protected Securities
("TIPS"). The historically steep yield curve in place at the time the Fed
began tightening monetary policy by increasing short term interest rates
prompted us to position the portfolio across the yield curve to benefit
from a flattening of the yield curve. For most of the period we were
over-weighted in the lower quality sectors of the credit markets. As
spreads for both the credit and mortgage sectors reached historically tight
levels in early 2005 we trimmed positions.(1)
Q: HOW DO YOU PLAN TO POSITION THE FUND, BASED ON MARKET CONDITIONS?
A: We believe the Fed is committed to its current course of action, pushing
short term rates higher in a measured fashion. We believe the corresponding
yield curve flattening is largely complete, and thus yield curve strategies
may be limited in the near term. We remain cautious in the high quality
credit sector due to rich valuations. We prefer to hold Treasuries until
incremental pricing spreads for corporate and agency bonds broaden. In the
U.S. government sector, TIPS remain a core holding. With incremental
spreads from non-Treasuries so narrow, the result should be modest and
could provide downside protection should the fundamental environment
deteriorate or volatility increases. We will be selective in the credit
sector until valuations demonstrate a more favorable risk-reward
trade-off.(1)
[PIE CHART]
PORTFOLIO COMPOSITION (as of March 31, 2005)(1)
as a percentage of total investments
U.S. Treasury Instruments 35.0%
Corporate Bonds 26.0%
FNMA 15.5%
FHLMC 13.5%
Cash Equivalents 8.9%
GNMA 1.1%
(1)PORTFOLIO COMPOSITION IS SUBJECT TO CHANGE
7
CLASSIC INSTITUTIONAL INTERMEDIATE BOND FUND
- --------------------------------------------------------------------------------
GROWTH OF $1,000,000 INVESTMENT (as of March 31, 2005)
[GRAPH IN MILLIONS OF DOLLARS]
Classic Institutional
Lehman Brothers Intermediate Intermediate Bond Fund
Government/Credit Index (Institutional Shares)
----------------------- ----------------------
06/30/99 1.0000 1.0000
1.00921 1.0094
12/99 1.00976 1.0124
1.02494 1.0322
1.04228 1.0457
1.07228 1.0774
1.11192 1.1155
1.14959 1.151
1.15732 1.1574
1.21058 1.2076
12/01 1.21157 1.1939
1.20888 1.1895
1.25186 1.2234
1.30857 1.2595
1.33074 1.2797
1.3508 1.2944
1.38754 1.327
1.38727 1.3298
12/03 1.3881 1.3313
1.42245 1.364
1.38656 1.3323
1.42407 1.3698
1.43032 1.3804
03/05 1.41786 1.3691
This chart assumes an initial hypothetical investment of $1,000,000 made on
6/30/99. Total return is based on net change in N.A.V. (net asset value)
assuming reinvestment of distributions. Returns shown on this page include
reinvestment of all dividends and other distributions.
The Funds performance is compared to the Lehman Brothers Intermediate
Government/Credit Bond Index which is a widely-recognized, market-value weighted
(higher market value bonds have more influence than lower market value bonds)
index of U.S. Treasury and agency securities, corporate bond issues and
mortgage-backed securities having maturities of 10 years or less. The index is
unmanaged and does not reflect the deduction of fees or taxes associated with a
mutual fund, such as investment management and fund accounting fees. Investors
cannot invest directly in an index, although they can invest in its underlying
securities.
AVERAGE ANNUAL TOTAL RETURNS AS OF 3/31/05 (%)
-------------------------------------------------
CLASSIC INSTITUTIONAL INCEPTION SINCE
INTERMEDIATE BOND FUND DATE+ 5 MONTH** 1 YEAR 3 YEAR 5 YEAR INCEPTION
- ---------------------------------------------------------------------------------------------------------------------------------
INSTITUTIONAL SHARES 06/30/99 -0.75 0.37 4.80 5.81 5.61
T SHARES 10/11/04 -0.74 0.26 4.76 5.79 5.59
L SHARES WITHOUT CDSC 10/11/04 -0.96 0.01 4.67 5.73 5.55
WITH CDSC* -2.91 -1.92 4.67 5.73 5.55
A SHARES WITHOUT SALES CHARGE 10/11/04 -0.82 0.18 4.73 5.77 5.58
WITH SALES CHARGE* -4.50 -3.60 3.39 4.97 4.88
LEHMAN BROTHERS INTERMEDIATE
GOVERNMENT/CREDIT INDEX -1.10 -0.32 5.46 6.71 --
PAST PERFORMANCE DOES NOT GUARANTEE FUTURE RESULTS. THE PERFORMANCE DATA QUOTED
REPRESENTS PAST PERFORMANCE AND CURRENT RETURNS MAY BE LOWER OR HIGHER. TOTAL
RETURN FIGURES INCLUDE CHANGE IN SHARE PRICE, REINVESTMENT OF DIVIDENDS AND
CAPITAL GAINS AND DO NOT REFLECT TAXES THAT A SHAREHOLDER WOULD PAY ON FUND
DISTRIBUTIONS OR ON THE REDEMPTION OF FUND SHARES. THE INVESTMENT RETURN AND
PRINCIPAL VALUE WILL FLUCTUATE SO THAT AN INVESTOR'S SHARES, WHEN REDEEMED MAY
BE WORTH MORE OR LESS THAN THE ORIGINAL COST. FOR PERFORMANCE DATA CURRENT TO
THE MOST RECENT MONTH END, VISIT OUR WEBSITE AT WWW.STICLASSICFUNDS.COM.
*CLASS A SHARE PERFORMANCE REFLECTS THE MAXIMUM FRONT-END SALES CHARGE OF 3.75%
AND CLASS L SHARES REFLECTS THE MAXIMUM CDSC (CONTINGENT DEFERRED SALES CHARGE)
OF 2.00% IN YEAR ONE ONLY.
**AGGREGATE TOTAL RETURN
+ The quoted returns reflect the performance from June 30, 1999 to October 11,
2004 of the Seix Intermediate Bond Fund, an open-end investment company that
was the predecessor fund to the Classic Institutional Intermediate Bond Fund.
Performance for the Institutional Shares, which commenced operations on
October 11, 2004, is the historical performance of the Seix Intermediate Bond
Fund's Class I Shares prior to that date.
Performance for the Class T and L Shares, which commenced operations on
October 11, 2004, is the historical performance of the Seix Intermediate Bond
Fund's Class I Shares prior to that date. The historical performance has not
been adjusted to reflect the Fund's T or L Share expenses. If it had been, the
performance would have been lower.
The Class A Shares began operating on October 11, 2004. Performance between
December 30, 1997 to January 25, 2002 and January 25, 2002 to October 11, 2004
is that of the Class I Shares and Class P Shares, respectively, of the Seix
Intermediate Bond Fund, the Fund's predecessor. The performance of the
predecessor fund's Class I Shares has not been adjusted to reflect the Fund's
A Share expenses. If it had been, the performance would have been lower.
8
CLASSIC INSTITUTIONAL LIMITED DURATION FUND
- --------------------------------------------------------------------------------
PORTFOLIO MANAGER(S)
- - Joseph Calabrese, CFA
- - John Talty, CFA
- --------------------------------------------------------------------------------
INVESTMENT CONCERNS
- --------------------------------------------------------------------------------
Mutual fund investing involves risk, including possible loss of principal. Bond
funds will tend to experience smaller fluctuations in value than stock funds.
However, investors in any bond fund should anticipate fluctuations in price,
especially for longer-term issues and in environments of rising interest rates.
- --------------------------------------------------------------------------------
MANAGEMENT DISCUSSION & ANALYSIS
- --------------------------------------------------------------------------------
Q: HOW DID THE FUND PERFORM IN COMPARISON TO IT'S BENCHMARK FOR THE PERIOD
ENDED MARCH 31, 2005?
A: The Fund was virtually flat to its benchmark for both the month of March
and the first quarter of 2005. The Fund's Institutional Shares had net
returns of 0.21% and 0.54% (month and quarter respectively) versus 0.23%
and 0.57% for the benchmark. Since the Fund's inception, it has lagged the
3 Month Treasury Bill by a small margin, returning 1.14% versus 1.33%. For
the 5 month period ended March 31, 2005 the Fund produced a total return of
0.84% (Institutional Shares) compared to a 0.92% total return for the
Fund's benchmark the Merrill Lynch 3 Month U.S. Treasury Bill Index. As the
economy expands, jobs increase and inflation fears accelerate, we see
little sign of the Federal Reserve Board's (the "Fed") actions receding but
are hesitant to expect more flattening of the Treasury yield curve. We
believe this could lead to a higher level of total income for shareholders
in the near future.
Q: WHAT FACTORS INFLUENCED THE FUND'S PERFORMANCE FOR THE PERIOD ENDED MARCH
31, 2005?
A: Higher rates and widening spreads were fixed income buzzwords
"re-introduced" in 2005. With the Fed continuing a gradual pace of
increasing short term rates, bonds and yield spreads were both under
pressure. Limited duration securities were impacted to a lesser degree to
other securities along the yield curve.
Q: HOW DO YOU PLAN TO POSITION THE FUND, BASED ON MARKET CONDITIONS?
A: We believe our strategy of emphasizing the use of floating rate
asset-backed and mortgage-backed securities was key. We believe coupons
represented, on average, 90% of total return and spread sectors
outperformed more than 60% of the time. Adding yield over the benchmark
increases income and could often acts as insurance against rising interest
rates. The portfolio supplements these spread related securities with short
term Treasury securities.(1) With corporate and mortgage securities at
historically rich levels and the Fed continuing a gradual pace of
increasing short term rates, bonds and yield spreads were under pressure.
We looked at this as an opportunity to defensively produce relative value.
Our performance received some benefits from these decisions to limit our
exposure to sectors whose valuations increased and to a yield curve which
had flattened considerably. As the economy expanded, jobs increased and
inflation fears accelerated, the yield curve flattened to nearly
unprecedented levels. While the Fed's actions show no sign of receding, we
are hesitant to believe in a greater move based on the reaction of long
rates. For the first time in history, the thirty year Treasury declined in
yield while the Fed was tightening. We believe this trend could moderate or
reverse itself, leading to a mild steepening of the curve. We recently
removed the yield curve trade, as we believe further upside appears to be
limited. We continue to align the Fund with the duration of the index,
however, we have adopted a more laddered approach to our yield curve
strategy.(1)
[PIE CHART]
PORTFOLIO COMPOSITION (as of March 31, 2005)(1)
as a percentage of total investments
U.S. Treasury Instruments 57.4%
Asset Backed Securities 33.3%
Cash Equivalents 4.7%
FNMA 4.6%
(1)PORTFOLIO COMPOSITION IS SUBJECT TO CHANGE
9
CLASSIC INSTITUTIONAL LIMITED DURATION FUND
- --------------------------------------------------------------------------------
GROWTH OF $1,000,000 INVESTMENT (as of March 31, 2005) $1,100,000
[GRAPH IN MILLIONS OF DOLLARS]
Classic Institutional
Merrill Lynch 3 Month Limited Duration Bond Fund
U.S. Treasury Bill Index (Institutional Shares)
------------------------ ----------------------
10/25/02 1.0000 1.0000
12/02 1.00277 1.0014
1.00583 1.0031
1.0092 1.0068
1.01169 1.0093
12/03 1.01429 1.0111
1.01671 1.014
1.01911 1.0155
1.02286 1.0188
12/04 1.02776 1.0232
03/05 1.03365 1.0287
This chart assumes an initial hypothetical investment of $1,000,000 made on
10/25/02. Total return is based on net change in N.A.V. (net asset value)
assuming reinvestment of distributions. Returns shown on this page include
reinvestment of all dividends and other distributions.
The Funds performance is compared to the Merrill Lynch 3 Month U.S. Treasury
Bill Index which is a widely-recognized index that tracks the performance of 3
Month U.S. Treasury Bills. The index is unmanaged and does not reflect the
deduction of fees or taxes associated with a mutual fund, such as investment
management and fund accounting fees. Investors cannot invest directly in an
index, although they can invest in its underlying securities.
AVERAGE ANNUAL TOTAL RETURNS AS OF 3/31/05 (%)
----------------------------------------------
CLASSIC INSTITUTIONAL
LIMITED DURATION FUND INCEPTION DATE+ 5 MONTH** 1 YEAR SINCE INCEPTION
- -----------------------------------------------------------------------------------------------------------------------------
INSTITUTIONAL SHARES 10/25/02 0.84 1.45 1.17
T SHARES 10/11/04 0.82 1.44 1.17
L SHARES WITHOUT CDSC 10/11/04 0.67 1.26 1.10
WITH CDSC* -1.33 -0.73 1.10
MERRILL LYNCH 3 MONTH U.S. TREASURY BILL INDEX 0.92 1.67 --
PAST PERFORMANCE DOES NOT GUARANTEE FUTURE RESULTS. THE PERFORMANCE DATA QUOTED
REPRESENTS PAST PERFORMANCE AND CURRENT RETURNS MAY BE LOWER OR HIGHER. TOTAL
RETURN FIGURES INCLUDE CHANGE IN SHARE PRICE, REINVESTMENT OF DIVIDENDS AND
CAPITAL GAINS AND DO NOT REFLECT TAXES THAT A SHAREHOLDER WOULD PAY ON FUND
DISTRIBUTIONS OR ON THE REDEMPTION OF FUND SHARES. THE INVESTMENT RETURN AND
PRINCIPAL VALUE WILL FLUCTUATE SO THAT AN INVESTOR'S SHARES, WHEN REDEEMED MAY
BE WORTH MORE OR LESS THAN THE ORIGINAL COST. FOR PERFORMANCE DATA CURRENT TO
THE MOST RECENT MONTH END, VISIT OUR WEBSITE AT WWW.STICLASSICFUNDS.COM.
*CLASS L SHARES REFLECTS THE MAXIMUM CDSC (CONTINGENT DEFERRED SALES CHARGE) OF
2.00% IN YEAR ONE ONLY.
**AGGREGATE TOTAL RETURN
+ The quoted returns reflect the performance from October 25, 2002 to October
11, 2004 of the Seix Limited Duration Fund, an open-end investment company
that was the predecessor fund to the Classic Institutional Limited Duration
Fund.
Performance for the Institutional Shares, which commenced operations on
October 11, 2004, is the historical performance of the Seix Limited Duration
Fund's Class I Shares prior to that date.
Performance for the Class T and L Shares, which commenced operations on
October 11, 2004, is the historical performance of the Seix Limited Duration
Fund's Class I Shares prior to that date. The historical performance has not
been adjusted to reflect the Fund's T or L Share expenses. If it had been,
the performance would have been lower.
10
CLASSIC INSTITUTIONAL SHORT-TERM BOND FUND
- --------------------------------------------------------------------------------
PORTFOLIO MANAGER(S)
- - Rob W. Corner
- - H. Rick Nelson
- --------------------------------------------------------------------------------
INVESTMENT CONCERNS
- --------------------------------------------------------------------------------
Bonds offer a relatively stable level of income, although bond prices will
fluctuate providing the potential for principal gain or loss. Intermediate-term,
higher-quality bonds generally offer less risk than longer-term bonds and a
lower rate of return.
- --------------------------------------------------------------------------------
MANAGEMENT DISCUSSION & ANALYSIS
- --------------------------------------------------------------------------------
Q: HOW DID THE FUND PERFORM IN COMPARISON TO IT'S BENCHMARK FOR THE PERIOD
ENDED MARCH 31, 2005?
A: The Fund performed in line with expectations the return for the 10 month
period ended March 31, 2005 was 1.05% (Institutional Shares). This compared
to a return of 1.01% for the Citigroup 1-3 Year Government/Corporate Bond
Index.
The 10 month period ended March 31, 2005 was not an ideal environment for
short-term bonds as the Federal Reserve Board (the "Fed") embarked on its
first tightening campaign since they last raised rates in 1999-2000.
Beginning on June 30, 2004, the FOMC launched a series of rate increases at
each Federal Open Market Committee ("FOMC") meeting increasing the fed
funds rate up by 175 basis points (1.75%) to 2.75% up from 1.00%. As a
result, short-term bond yields also rose. For example, the 2 year U.S.
Treasury note jumped 125 basis points (1.25%) to 3.79% up from 2.54% during
the same period.
The economic environment during the period was characterized by
accommodative monetary policy, increased inflation concerns, moderate
economic growth, and improved labor market conditions. We believe the rise
in rates by the Fed was an attempt to remove monetary policy accommodation,
to control economic growth, and contain inflation expectations.
Q: WHAT FACTORS INFLUENCED THE FUND'S PERFORMANCE FOR THE PERIOD ENDED MARCH
31, 2005?
A: The Fund maintained a defensive duration over the last 10 months as
interest moved higher by over 100 basis points (1.00%). While the rise in
rates caused price depreciation and generally detracted from performance of
the Fund, a longer duration would have detracted even more from performance
in a rising rate environment.
Our sector allocations remained relatively constant through the time period
as we emphasized yield through corporate bonds, asset backed securities,
and mortgage backed securities. The most notable changes to allocation was
a reduction to corporate bonds and an increase in mortgage-backed
securities. We sold out of General Motors bonds during the first quarter of
2005 which proved beneficial as the auto sector was downgraded by the
rating services.(1)
The allocation to "spread" sectors helped performance as yield/income was
the primary source of returns as rates rose. U.S. agency bonds and mortgage
backed securities benefited from reduced supply, greater demand (including
overseas), and lower volatility.(1)
The Fund also owns some securities with maturities longer then three years
which caused the Fund to be invested in a "barbell" fashion (longer
securities and shorter securities and less in the middle). This also helped
the returns as the two- to five-year part of the curve flattened by 86
basis points (0.86%).(1)
Q: HOW DO YOU PLAN TO POSITION THE FUND, BASED ON MARKET CONDITIONS?
A: In the short-term we plan to maintain our conservative duration theme as we
believe the Fed is expected to continue raising rates. However, we may look
to increase duration at some point in the next year as the Fed approaches
the end of their tightening cycle.
We are focusing more on quality and have reduced our allocation to "BBB"
credits as credit spreads have narrowed to extreme levels and a recent
spike of high profile events (i.e. GM, AIG, KMG) have heightened our
concern over event risk.
[PIE CHART]
PORTFOLIO COMPOSITION (as of March 31, 2005)(1)
as a percentage of total investments
Corporate Bonds 35.3%
FNMA 15.7%
U.S. Treasury Instruments 14.7%
FHLMC 11.9%
Asset Backed Securities 11.1%
U.S. Agency Bonds 9.5%
Cash Equivalents 1.8%
(1)PORTFOLIO COMPOSITION IS SUBJECT TO CHANGE
11
CLASSIC INSTITUTIONAL SHORT-TERM BOND FUND
- --------------------------------------------------------------------------------
GROWTH OF $1,000,000 INVESTMENT (as of March 31, 2005)
[GRAPH IN MILLIONS OF DOLLARS]
Classic Institutional
Citigroup 1-3 Year Short-Term Bond Fund
Government/Credit Index (Institutional Shares)
----------------------- ----------------------
05/14/02 1.0000 1.0000
1.00746 1.0122
1.03234 1.0368
12/02 1.04498 1.0475
1.05443 1.0553
1.06727 1.067
1.07232 1.0703
12/03 1.07511 1.0719
1.0878 1.0809
1.07569 1.07
1.08811 1.0813
12/04 1.08915 1.0832
03/05 1.08633 1.0816
This chart assumes an initial hypothetical investment of $1,000,000 made on
5/14/02. Total return is based on net change in N.A.V. (net asset value)
assuming reinvestment of distributions. Returns shown on this page include
reinvestment of all dividends and other distributions.
The Funds performance is compared to the Citigroup 1-3 Year
Government/Credit Index which is a widely recognized index of U.S. Treasury
securities, government agency obligations, and corporate debt securities
rated at least investment grade (BBB). The securities in the index have
maturities of one year or greater and less than 3 years. The index is
unmanaged and does not reflect the deduction of fees or taxes associated
with a mutual fund, such as investment management and fund accounting fees.
Investors cannot invest directly in an index, although they can invest in
its underlying securities.
AVERAGE ANNUAL TOTAL RETURNS AS OF 3/31/05 (%)
----------------------------------------------
CLASSIC INSTITUTIONAL
SHORT-TERM BOND FUND INCEPTION DATE 10 MONTH* 1 YEAR SINCE INCEPTION
- -----------------------------------------------------------------------------------------------------------------------------------
INSTITUTIONAL SHARES 05/14/02 1.05 0.06 2.76
CITIGROUP 1-3 YEAR GOVERNMENT/CREDIT INDEX 1.01 -0.13 --
PAST PERFORMANCE DOES NOT GUARANTEE FUTURE RESULTS. THE PERFORMANCE DATA QUOTED
REPRESENTS PAST PERFORMANCE AND CURRENT RETURNS MAY BE LOWER OR HIGHER. TOTAL
RETURN FIGURES INCLUDE CHANGE IN SHARE PRICE, REINVESTMENT OF DIVIDENDS AND
CAPITAL GAINS AND DO NOT REFLECT TAXES THAT A SHAREHOLDER WOULD PAY ON FUND
DISTRIBUTIONS OR ON THE REDEMPTION OF FUND SHARES. THE INVESTMENT RETURN AND
PRINCIPAL VALUE WILL FLUCTUATE SO THAT AN INVESTOR'S SHARES, WHEN REDEEMED MAY
BE WORTH MORE OR LESS THAN THE ORIGINAL COST. FOR PERFORMANCE DATA CURRENT TO
THE MOST RECENT MONTH END, VISIT OUR WEBSITE AT WWW.STICLASSICFUNDS.COM.
*AGGREGATE TOTAL RETURN
12
CLASSIC INSTITUTIONAL SUPER SHORT INCOME PLUS FUND
- --------------------------------------------------------------------------------
PORTFOLIO MANAGER(S)
- - Robert W. Corner
- - H. Rick Nelson
- --------------------------------------------------------------------------------
INVESTMENT CONCERNS
- --------------------------------------------------------------------------------
Bonds offer a relatively stable level of income, although bond prices will
fluctuate providing the potential for principal gain or loss. Intermediate-term,
higher-quality bonds generally offer less risk than longer-term bonds and a
lower rate of return.
U.S. Government guarantees apply only to the underlying securities of the Fund's
portfolio and not the funds shares.
- --------------------------------------------------------------------------------
MANAGEMENT DISCUSSION & ANALYSIS
- --------------------------------------------------------------------------------
Q: HOW DID THE FUND PERFORM IN COMPARISON TO IT'S BENCHMARK FOR THE PERIOD
ENDED MARCH 31, 2005?
A: The Fund's total return for the 10 month period ended March 31, 2005 was
1.22% (Institutional Shares). This compared to a total return of 1.45% for
the Citigroup 6 Month U.S. Treasury Index.
The 10 month period ended March 31, 2005 was not an ideal environment for
short-term bonds as the Federal Reserve Board (the "Fed") embarked on its
first tightening campaign since they last raised rates in 1999-2000.
Beginning on June 30, 2004, the Federal Open Market Committee ("FOMC")
launched a series of rate increases at each FOMC meeting increasing the fed
funds rate up by 175 basis points (1.75%) to 2.75% up from 1.00%. As a
result, short-term bond yields also rose. For example, the 2 year U.S.
Treasury note jumped 125 basis points (1.25%) to 3.79% up from 2.54% during
the same period.
The economic environment during this period has been characterized by
accommodative monetary policy, increased inflation concerns, moderate
economic growth, and improved labor market conditions. We believe the rise
in rates by the Fed was an attempt to remove monetary policy accommodation,
to control economic growth, and contain inflation expectations.
An additional factor that impacted the short-term performance of the Fund
is maintaining a low Net Asset Value (NAV) of $2.00. In order to rectify
this, the Fund planned a reverse share split on April 1, 2005 to $10.00.
Accounting for this difference in NAV, the performance of the Fund would
have been 1.55% (Institutional Shares).
Q: WHAT FACTORS INFLUENCED THE FUND'S PERFORMANCE FOR THE PERIOD ENDED MARCH
31, 2005?
A: The Fund maintained a conservative duration posture during the 10 month
period ending March 31, 2005. In order to reduce price sensitivity in a
rising rate environment, the duration of the Fund was maintained in a range
of 0.5-0.6 years. Maximum permitted duration of the Fund is 1.0 years.
While the rise in rates caused price depreciation and generally detracted
from performance of the Fund, a longer duration would have detracted even
more from performance in a rising rate environment.(1)
Our sector allocations remained relatively constant through the time period
as we emphasized yield through corporate bonds, asset backed securities,
and mortgage backed securities. The most notable changes to allocation was
a reduction to corporate bonds from 34% to 31% and an increase in mortgage
backed securities from 15% to 18%. We reduced "BBB" credits from 11% to 7%
and investments in adjustable/floating rate securities was increased from
45% to 52%.(1)
The allocation to "spread" sectors helped performance as yield/income was
the primary source of returns as rates rose. Floating rate securities
provided stability and yield. U.S. Agency bonds and mortgage backed
securities benefited from reduced supply, greater demand (including
overseas), and lower volatility.(1)
Q: HOW DO YOU PLAN TO POSITION THE FUND, BASED ON MARKET CONDITIONS?
A: In the short-term we plan to maintain our conservative duration theme as we
believe the Fed is expected to continue raising rates. However, we may look
to increase duration at some point in the next year as the Fed approaches
the end of their tightening cycle.(1)
We are focusing more on quality and have reduced our allocation "BBB"
credits as credit spreads have narrowed to extreme levels and a recent
spike of high profile events (i.e. GM, AIG) have heightened our concern
over event risk.(1)
Our high allocation to floating rate securities is expected to remain if
the yield curve continues to flatten during the Fed tightening phase.(1)
[PIE CHART]
PORTFOLIO COMPOSITION (as of March 31, 2005)(1)
as a percentage of total investments
Corporate Bonds 36.2%
Asset Backed Securities 17.3%
FNMA 13.4%
FHLMC 10.5%
Commercial Paper 10.3%
Municipal Bonds 4.2%
U.S. Agency Bonds 3.9%
Cash Equivalents 1.7%
Master Notes 1.4%
U.S. Treasury Instruments 1.1%
(1)PORTFOLIO COMPOSITION IS SUBJECT TO CHANGE
13
CLASSIC INSTITUTIONAL SUPER SHORT INCOME PLUS FUND
- --------------------------------------------------------------------------------
GROWTH OF $1,000,000 INVESTMENT (as of March 31, 2005)
[GRAPH IN MILLIONS OF DOLLARS]
Classic Institutional
Citigroup 6 Month Super Short Income
U.S. Treasury Bill Plus Fund
Index (Institutional Shares)
------------------ ----------------------
04/15/02 1.0000 1.0000
1.00471 1.01
1.00943 1.0209
12/02 1.01361 1.0268
1.01707 1.0316
1.0201 1.036
1.02289 1.0399
12/03 1.02553 1.0387
1.02814 1.0477
1.03082 1.0412
1.03427 1.0508
12/04 1.03893 1.0513
03/05 1.04478 1.0579
This chart assumes an initial hypothetical investment of $1,000,000 made on
4/15/02. Total return is based on net change in N.A.V. (net asset value)
assuming reinvestment of distributions. Returns shown on this page include
reinvestment of all dividends and other distributions.
The Funds performance is compared to the Citigroup 6 Month U.S. Treasury Bill
Index which is a widely-recognized index which tracks the performance of 6 Month
U.S. Treasury Bills. The index is unmanaged and does not reflect the deduction
of fees or taxes associated with a mutual fund, such as investment management
and fund accounting fees. Investors cannot invest directly in an index, although
they can invest in its underlying securities.
AVERAGE ANNUAL TOTAL RETURNS AS OF 3/31/05 (%)
----------------------------------------------
CLASSIC INSTITUTIONAL SUPER
SHORT INCOME PLUS FUND INCEPTION DATE+ 10 MONTH* 1 YEAR SINCE INCEPTION
- --------------------------------------------------------------------------------------------------------------------------
INSTITUTIONAL SHARES 04/15/02 1.22 0.97 1.92
T SHARES 10/03/02 1.06 0.78 1.56
CITIGROUP 6 MONTH U.S.
TREASURY BILL INDEX 1.45 1.50 --
PAST PERFORMANCE DOES NOT GUARANTEE FUTURE RESULTS. THE PERFORMANCE DATA QUOTED
REPRESENTS PAST PERFORMANCE AND CURRENT RETURNS MAY BE LOWER OR HIGHER. TOTAL
RETURN FIGURES INCLUDE CHANGE IN SHARE PRICE, REINVESTMENT OF DIVIDENDS AND
CAPITAL GAINS AND DO NOT REFLECT TAXES THAT A SHAREHOLDER WOULD PAY ON FUND
DISTRIBUTIONS OR ON THE REDEMPTION OF FUND SHARES. THE INVESTMENT RETURN AND
PRINCIPAL VALUE WILL FLUCTUATE SO THAT AN INVESTOR'S SHARES, WHEN REDEEMED MAY
BE WORTH MORE OR LESS THAN THE ORIGINAL COST. FOR PERFORMANCE DATA CURRENT TO
THE MOST RECENT MONTH END, VISIT OUR WEBSITE AT WWW.STICLASSICFUNDS.COM.
*AGGREGATE TOTAL RETURN
+ The T Shares began operating on October 3, 2002. T Shares performance for
the period prior to October 3, 2002 reflects the performance of the Fund's
Institutional Shares. The performance of the Institutional Shares has not been
adjusted to reflect the Fund's T Share expenses. If it had been, the
performance would have been lower.
14
CLASSIC INSTITUTIONAL TOTAL RETURN BOND FUND
- --------------------------------------------------------------------------------
PORTFOLIO MANAGER(S)
- - John Talty, CFA
- - Perry Troisi
- --------------------------------------------------------------------------------
INVESTMENT CONCERNS
- --------------------------------------------------------------------------------
Bonds offer a relatively stable level of income, although bond prices will
fluctuate providing the potential for principal gain or loss. Intermediate-term,
higher-quality bonds generally offer less risk than longer-term bonds and a
lower rate of return.
- --------------------------------------------------------------------------------
MANAGEMENT DISCUSSION & ANALYSIS
- --------------------------------------------------------------------------------
Q: HOW DID THE FUND PERFORM IN COMPARISON TO IT'S BENCHMARK FOR THE PERIOD
ENDED MARCH 31, 2005?
A: The Fund out-performed its benchmark, generating a total return of 4.86%
(Institutional Shares), compared to a 4.27% return for the Lehman Brothers
U.S. Aggregate Bond Index for the 10 months ended March 31, 2005. The fixed
income markets surprised on the upside in 2005 as longer term interest
rates remained steady despite the Federal Reserve Board's (the "Fed") shift
in policy which began increasing short term interest rates in mid-2004. The
credit sector of the market also performed very well for most of the period
as economic strength translated into improved credit fundamentals and risk
premiums declined.
Q: WHAT FACTORS INFLUENCED THE FUND'S PERFORMANCE FOR THE PERIOD ENDED MARCH
31, 2005?
A: The most important factors which influenced the Fund's performance were
yield curve strategy, credit sector weighting, security selection, and
holdings of Treasury Inflation Protected Securities ("TIPS"). The
historically steep yield curve in place at the time the Fed began
tightening monetary policy by increasing short term interest rates prompted
us to position the portfolio across the yield curve to benefit from a
flattening of the yield curve. This proved to be a rewarding strategy as
the short rates rose and longer term rates were relatively unchanged during
the period. For most of the period we were over-weighted in the lower
quality sectors of the credit markets which performed very well as economic
strength lead to improving credit fundamentals. As spreads for both the
credit and mortgage sectors reached historically tight levels in early 2005
we trimmed positions which helped to protect performance as the markets
turned down late in the first calendar quarter of 2005. Our exposure to
TIPS also enhanced the Fund's relative performance.(1)
Q: HOW DO YOU PLAN TO POSITION THE FUND, BASED ON MARKET CONDITIONS?
A: We believe the Fed is committed to its current course of action, pushing
short term rates higher in a measured fashion. We believe the corresponding
yield curve flattening is largely complete, and thus yield curve strategies
may be limited in the near term. We remain cautious in the high quality
credit sector due to rich valuations, and prefer to hold Treasuries until
incremental spreads for corporate and agency bonds broaden. In the U.S.
government sector, TIPS remain a core holding. With incremental spreads
from non-Treasuries so narrow, the result is modest and could provide
downside protection should the fundamental environment deteriorate or
volatility increases. We will be very selective in the credit sector until
valuations demonstrate a more favorable risk-reward trade-off.(1) PORTFOLIO
COMPOSITION (as of March 31, 2005)(1) as a percentage of total investments
[PIE CHART]
PORTFOLIO COMPOSITION (as of March 31, 2005)(1)
as a percentage of total investments
U.S. Treasury Instruments 35.0%
Corporate Bonds 26.0%
FNMA 15.5%
FHLMC 13.5%
Cash Equivalents 8.9%
GNMA 1.1%
(1)PORTFOLIO COMPOSITION IS SUBJECT TO CHANGE
15
CLASSIC INSTITUTIONAL TOTAL RETURN BOND FUND
- --------------------------------------------------------------------------------
GROWTH OF $1,000,000 INVESTMENT (as of March 31, 2005)
[GRAPH IN MILLIONS OF DOLLARS]
Classic Institutional
Lehman Brothers U.S. Total Return Bond Fund
Aggregate Bond Index (Institutional Shares)
--------------------- ----------------------
10/15/03 1.000 1.000
12/03 1.0126 1.0128
1.03952 1.0379
1.01412 1.0064
1.04654 1.0389
12/04 1.05653 1.0562
03/05 1.05146 1.0489
This chart assumes an initial hypothetical investment of $1,000,000 made on
10/15/03. Total return is based on net change in N.A.V. (net asset value)
assuming reinvestment of distributions. Returns shown on this page include
reinvestment of all dividends and other distributions.
The Funds performance is compared to the Lehman Brothers U.S. Aggregate Bond
Index a widely-recognized index of U.S. Treasury and agency securities,
corporate bond issues, mortgage-backed securities, asset-backed securities and
corporate mortgage-backed securities. The index is unmanaged and does not
reflect the deduction of fees or taxes associated with a mutual fund, such as
investment management and fund accounting fees. Investors cannot invest directly
in an index, although they can invest in its underlying securities.
AVERAGE ANNUAL TOTAL RETURNS AS OF 3/31/05 (%)
----------------------------------------------
CLASSIC INSTITUTIONAL TOTAL RETURN BOND FUND INCEPTION DATE+ 10 MONTH* 1 YEAR SINCE INCEPTION
- ----------------------------------------------------------------------------------------------------------------------------------
INSTITUTIONAL SHARES 10/15/03 4.86 1.06 3.32
T SHARES 01/14/04 4.81 0.99 3.24
LEHMAN BROTHERS U.S. AGGREGATE BOND INDEX 4.27 1.15 --
PAST PERFORMANCE DOES NOT GUARANTEE FUTURE RESULTS. THE PERFORMANCE DATA QUOTED
REPRESENTS PAST PERFORMANCE AND CURRENT RETURNS MAY BE LOWER OR HIGHER. TOTAL
RETURN FIGURES INCLUDE CHANGE IN SHARE PRICE, REINVESTMENT OF DIVIDENDS AND
CAPITAL GAINS AND DO NOT REFLECT TAXES THAT A SHAREHOLDER WOULD PAY ON FUND
DISTRIBUTIONS OR ON THE REDEMPTION OF FUND SHARES. THE INVESTMENT RETURN AND
PRINCIPAL VALUE WILL FLUCTUATE SO THAT AN INVESTOR'S SHARES, WHEN REDEEMED MAY
BE WORTH MORE OR LESS THAN THE ORIGINAL COST. FOR PERFORMANCE DATA CURRENT TO
THE MOST RECENT MONTH END, VISIT OUR WEBSITE AT WWW.STICLASSICFUNDS.COM.
*AGGREGATE TOTAL RETURN
+ The T Shares began operating on January 14, 2004. T Shares performance for
the period prior to January 14, 2004 reflects the performance of the Fund's
Institutional Shares. The performance of the Institutional Shares has not been
adjusted to reflect the Fund's T Share expenses. If it had been, the
performance would have been lower.
16
CLASSIC INSTITUTIONAL U.S. GOVERNMENT SECURITIES SUPER SHORT INCOME PLUS FUND
- --------------------------------------------------------------------------------
PORTFOLIO MANAGER(S)
- - Rob W. Corner
- - H. Rick Nelson
- --------------------------------------------------------------------------------
INVESTMENT CONCERNS
- --------------------------------------------------------------------------------
Bonds offer a relatively stable level of income, although bond prices will
fluctuate providing the potential for principal gain or loss. Intermediate-term,
higher-quality bonds generally offer less risk than longer-term bonds and a
lower rate of return.
U.S. Government guarantees apply only to the underlying securities of the Fund's
portfolio and not the funds shares.
The Fund is subject to the risk that principal value reacts in opposition to the
movement of interests rates and that a rising interest rate environment
increases the risk of loss of principal.
- --------------------------------------------------------------------------------
MANAGEMENT DISCUSSION & ANALYSIS
- --------------------------------------------------------------------------------
Q: HOW DID THE FUND PERFORM IN COMPARISON TO IT'S BENCHMARK FOR THE PERIOD
ENDED MARCH 31, 2005?
A: For the 10 month period ended March 31, 2005 the Fund produced a total
return of 1.36% (Institutional Shares). This compared to a return of 1.45%
for the Citigroup 6 Month U.S. Treasury Index.
The 10 month period ended March 31, 2005 was not an ideal environment for
short-term bonds as the Federal Reserve Board (the "Fed") embarked on its
first tightening campaign since they last raised rates in 1999-2000.
Beginning on June 30, 2004, the Federal Open Market Committee ("FOMC")
launched a series of rate increases at each FOMC meeting increasing the fed
funds rate up by 175 basis points (1.75%) to 2.75% up from 1.00%. As a
result, short-term bond yields also rose. For example, the 2 year U.S.
Treasury note jumped 125 basis points (1.25%) to 3.79% up from 2.54% during
the same period.
The economic environment during this period has been characterized by
accommodative monetary policy, increased inflation concerns, moderate
economic growth, and improved labor market conditions. We believe the rise
in rates by the Fed was an attempt to remove monetary policy accommodation,
to control economic growth, and contain inflation expectations.
An additional factor that impacted the short-term performance of the Fund
is maintaining a low Net Asset Value (NAV) of $2.00. In order to rectify
this, the Fund planned a reverse share split on April 1, 2005 to $10.00.
Accounting for this difference in NAV, the performance of the Fund would
have been 1.62% (Institutional Shares).
Q: WHAT FACTORS INFLUENCED THE FUND'S PERFORMANCE FOR THE PERIOD ENDED MARCH
31, 2005?
A: The Fund maintained a conservative duration posture during the 10 month
period ending March 31, 2005. In order to reduce price sensitivity in a
rising rate environment, the duration of the Fund was maintained in a range
of 0.5-0.6 years. Maximum permitted duration of the Fund is 1.0 years.
While the rise in rates caused price depreciation and generally detracted
from performance of the Fund, a longer duration would have detracted even
more from performance in a rising rate environment.(1)
Our sector allocations remained relatively constant through the time period
as we emphasized yield through U.S. government agency bonds, U.S.
government agency mortgage-backed securities, and "AAA" rated student loan
backed securities. The most notable changes to allocation was a reduction
to cash & equivalents from 25% to 13%, and an increases from 27% to 31% for
mortgage-backed securities and "AAA" Student Loans from 9% to 14%. We also
increased our allocation to adjustable/floating rate securities from 44% to
59%.
The allocation to "spread" sectors helped performance as yield/income was
the primary source of returns as rates rose. Floating rate securities
provided stability and yield. U.S. agency bonds and mortgage-backed
securities benefited from reduced supply, greater demand (including
overseas), and lower volatility.
Q: HOW DO YOU PLAN TO POSITION THE FUND, BASED ON MARKET CONDITIONS?
A: In the short-term we plan to maintain our conservative duration theme as
the Fed is expected to continue raising rates. However, we may look to
increase duration at some point in the next year as the Fed approaches the
end of their tightening cycle.(1)
Our high allocation to floating rate securities is expected to remain if
the yield curve continues to flatten during the Fed tightening phase.(1)
[PIE CHART]
PORTFOLIO COMPOSITION (as of March 31, 2005)(1)
as a percentage of total investments
FNMA 37.2%
FHLMC 25.9%
U.S. Agency Bonds 17.5%
Cash Equivalents 7.2%
Asset Backed Securities 4.8%
Municipal Bonds 4.8%
Corporate Bonds 2.4%
GNMA 0.2%
(1)PORTFOLIO COMPOSITION IS SUBJECT TO CHANGE CLASSIC INSTITUTIONAL
17
CLASSIC INSTITUTIONAL U.S. GOVERNMENT SECURITIES SUPER SHORT INCOME PLUS FUND
- --------------------------------------------------------------------------------
GROWTH OF $1,000,000 INVESTMENT (as of March 31, 2005)
[GRAPH IN MILLIONS OF DOLLARS]
Classic Institutional
U.S. Government Securities
Citigroup 6 Month Super Short Income Plus Fund
U.S. Treasury Bill Index (Institutional Shares)
------------------------ ----------------------
04/11/02 1.0000 1.0000
1.00471 1.0103
1.00943 1.0211
12/02 1.01361 1.0279
1.01707 1.0332
1.0201 1.0327
1.02289 1.0366
12/03 1.02553 1.0353
1.02814 1.0444
1.03082 1.0431
1.03427 1.0477
12/04 1.03893 1.0541
03/05 1.04478 1.0559
This chart assumes an initial hypothetical investment of $1,000,000 made on
4/11/02. Total return is based on net change in N.A.V. (net asset value)
assuming reinvestment of distributions. Returns shown on this page include
reinvestment of all dividends and other distributions.
The Funds performance is compared to the Citigroup 6 Month U.S. Treasury Bill
Index which is a widely-recognized index which tracks the performance of the
6 Month U.S. Treasury Bills. The index is unmanaged and does not reflect the
deduction of fees or taxes associated with a mutual fund, such as investment
management and fund accounting fees. Investors cannot invest directly in an
index, although they can invest in its underlying securities.
AVERAGE ANNUAL TOTAL RETURNS AS OF 3/31/05 (%)
----------------------------------------------
CLASSIC INSTITUTIONAL U.S. GOVERNMENT
SECURITIES SUPER SHORT INCOME PLUS FUND INCEPTION DATE+ 10 MONTH* 1 YEAR SINCE INCEPTION
- -------------------------------------------------------------------------------------------------------------------------------
INSTITUTIONAL SHARES 04/11/02 1.36 1.10 1.85
L SHARES 04/16/03 1.32 1.12 1.67
CITIGROUP 6 MONTH U.S. TREASURY BILL INDEX 1.45 1.50 --
PAST PERFORMANCE DOES NOT GUARANTEE FUTURE RESULTS. THE PERFORMANCE DATA QUOTED
REPRESENTS PAST PERFORMANCE AND CURRENT RETURNS MAY BE LOWER OR HIGHER. TOTAL
RETURN FIGURES INCLUDE CHANGE IN SHARE PRICE, REINVESTMENT OF DIVIDENDS AND
CAPITAL GAINS AND DO NOT REFLECT TAXES THAT A SHAREHOLDER WOULD PAY ON FUND
DISTRIBUTIONS OR ON THE REDEMPTION OF FUND SHARES. THE INVESTMENT RETURN AND
PRINCIPAL VALUE WILL FLUCTUATE SO THAT AN INVESTOR'S SHARES, WHEN REDEEMED MAY
BE WORTH MORE OR LESS THAN THE ORIGINAL COST. FOR PERFORMANCE DATA CURRENT TO
THE MOST RECENT MONTH END, VISIT OUR WEBSITE AT WWW.STICLASSICFUNDS.COM.
*AGGREGATE TOTAL RETURN
+ The L Shares began operating on April 16, 2003. L Shares performance for the
period prior to April 16, 2003 reflects the performance of the Fund's
Institutional Shares. The performance of the Institutional Shares has not been
adjusted to reflect the Fund's L Share expenses. If it had been, the
performance would have been lower.
18
SEIX INSTITUTIONAL HIGH YIELD FUND
- --------------------------------------------------------------------------------
PORTFOLIO MANAGER(S)
- - George Goudelias
- - Michael McEachern, CFA
- --------------------------------------------------------------------------------
INVESTMENT CONCERNS
- --------------------------------------------------------------------------------
Mutual fund investing involves risk, including possible loss of principal. Bond
Funds will tend to experience smaller fluctuations in value than stock funds.
However, investors in any bond fund should anticipate fluctuations in price,
especially for longer-term issues and in environments of rising interest rates.
Although the Fund's yield may be higher than that of fixed income funds that
purchase higher-rated securities, the potentially higher yield is a function of
the greater risk that the fund's share price will decline.
- --------------------------------------------------------------------------------
MANAGEMENT DISCUSSION & ANALYSIS
- --------------------------------------------------------------------------------
Q: HOW DID THE FUND PERFORM IN COMPARISON TO IT'S BENCHMARK FOR THE PERIOD
ENDED MARCH 31, 2005?
A: For the 5 month period ended March 31, 2005, the total return of the Fund
was -0.53% (Institutional Shares) versus the 1.04% total return of the
Funds benchmark, the Merrill Lynch High Yield Master Index.
Q: WHAT FACTORS INFLUENCED THE FUND'S PERFORMANCE FOR THE PERIOD ENDED MARCH
31, 2005?
A: With the continued strong recovery in credit, the portfolio's fiscal year
return was moderately healthy. However, the portfolio lagged the benchmark.
Maintaining a trend that began in the fourth quarter of 2002, the lowest
quality bonds performed the best during the period as investors, especially
in mutual funds, again stretched for yield. We continued to follow our
bottom up, research oriented investment approach which has resulted in
stable portfolio returns with low volatility for the past seven years. This
has also been accomplished without defaults or distressed sales. We
continue to find attractive opportunities in our universe of healthy BB and
B rated securities.(1)
Q: HOW DO YOU PLAN TO POSITION THE FUND, BASED ON MARKET CONDITIONS?
A: We believe the economy offers a favorable environment for High Yield
securities. Consumer demand has shown no signs of weakening and capital
spending has grown at a comfortable pace. The weak dollar has dampened
competition from exports and allowed companies in basic industries to
regain some pricing power. Over the past five quarters, gross domestic
product(2) growth has ranged from 3.0% to 4.5%-a pace which we feel is not
too slow and not too overheated, but just right for High Yield securities.
In addition, most High Yield issuers continue to build healthier balance
sheets and have not borrowed excessively to finance over expansion or
expensive acquisitions. We believe both leverage and interest coverage are
improving for the average BB and B rated company. A robust market has
allowed companies to refinance their high interest rate short term bonds
and bank loans into longer maturity and lower coupon public debt. Both
leverage and interest coverage have improved for the average BB and B rated
issuer and defaults remain near their seven year low. We believe
fundamental conditions - for consumer demand, corporate financial health
and access to liquidity--remain quite positive.(1)
[PIE CHART]
CREDIT QUALITY BREAKDOWN (as of March 31, 2005)(1)
as a percentage of total investments
BB 41.9%
B 56.1%
AAA 1.8%
BBB 0.2%
(1)PORTFOLIO COMPOSITION IS SUBJECT TO CHANGE
(2)The Gross Domestic Product ("GDP") measures the market value of the goods
and services produced by labor and property in the United States.
19
SEIX INSTITUTIONAL HIGH YIELD FUND
- --------------------------------------------------------------------------------
GROWTH OF $1,000,000 INVESTMENT (as of March 31, 2005)
[GRAPH IN MILLIONS OF DOLLARS]
Merrill Lynch Seix Institutional
High Yield High Yield Fund
Master Index (Institutional Shares)
------------ ----------------------
12/29/00 1.0000 1.0000
1.01000 1.0000
1.06213 1.0578
1.04866 1.0699
1.0063 1.071
12/01 1.06205 1.1133
1.08284 1.1305
1.01633 1.1336
.984250 1.1409
12/02 1.04989 1.1839
1.12234 1.2339
1.23088 1.2991
1.26202 1.311
12/03 1.33574 1.3681
1.36558 1.3974
1.35356 1.375
1.41634 1.4414
12/04 1.47952 1.4822
03/05 1.45828 1.4577
This chart assumes an initial hypothetical investment of $1,000,000 made on
12/29/00. Total return is based on net change in N.A.V. (net asset value)
assuming reinvestment of distributions. Returns shown on this page include
reinvestment of all dividends and other distributions.
The Funds performance is compared to the Merrill Lynch High Yield Master Index
which is a widely-recognized index of U.S. high yield corporate bond issues
having maturities of at least one year. The index does not reflect the deduction
of fees or taxes associated with a mutual fund, such as investment management
and fund accounting fees. Investors cannot invest directly in an index, although
they can invest in its underlying securities.
AVERAGE ANNUAL TOTAL RETURNS AS OF 3/31/05 (%)
----------------------------------------------
SINCE
SEIX INSTITUTIONAL HIGH YIELD FUND INCEPTION DATE+ 5 MONTH** 1 YEAR 3 YEAR INCEPTION
- ---------------------------------------------------------------------------------------------------------------------------
INSTITUTIONAL SHARES 12/29/00 -0.53 4.32 8.84 9.27
T SHARES 10/11/04 -0.59 4.24 8.82 9.25
L SHARES WITHOUT CDSC 10/11/04 -0.89 3.90 8.70 9.16
WITH CDSC* -2.81 1.96 8.70 9.16
A SHARES WITHOUT SALES CHARGE 12/21/01 -0.64 4.10 8.51 9.01
WITH SALES CHARGE* -4.40 0.17 7.13 8.04
MERRILL LYNCH HIGH YIELD MASTER INDEX 1.04 6.79 10.43 --
PAST PERFORMANCE DOES NOT GUARANTEE FUTURE RESULTS. THE PERFORMANCE DATA QUOTED
REPRESENTS PAST PERFORMANCE AND CURRENT RETURNS MAY BE LOWER OR HIGHER. TOTAL
RETURN FIGURES INCLUDE CHANGE IN SHARE PRICE, REINVESTMENT OF DIVIDENDS AND
CAPITAL GAINS AND DO NOT REFLECT TAXES THAT A SHAREHOLDER WOULD PAY ON FUND
DISTRIBUTIONS OR ON THE REDEMPTION OF FUND SHARES. THE INVESTMENT RETURN AND
PRINCIPAL VALUE WILL FLUCTUATE SO THAT AN INVESTOR'S SHARES, WHEN REDEEMED MAY
BE WORTH MORE OR LESS THAN THE ORIGINAL COST. FOR PERFORMANCE DATA CURRENT TO
THE MOST RECENT MONTH END, VISIT OUR WEBSITE AT WWW.STICLASSICFUNDS.COM.
*CLASS A SHARE PERFORMANCE REFLECTS THE MAXIMUM FRONT-END SALES CHARGE OF 3.75%
AND CLASS L SHARES REFLECT THE MAXIMUM CDSC (CONTINGENT DEFERRED SALES CHARGE)
OF 2.00% IN YEAR ONE ONLY.
**AGGREGATE TOTAL RETURN
+ The quoted returns reflect the performance from December 29, 2000 to October
11, 2004 of the Seix High Yield Fund, an open-end investment company that was
the predecessor fund to the Seix Institutional High Yield Fund.
Performance for the Institutional Shares, which commenced operations on
October 11, 2004, is the historical performance of the Seix High Yield Fund's
Class I Shares prior to that date.
Performance for the Class T and L Shares, which commenced operations on
October 11, 2004, is the historical performance of the Seix High Yield Fund's
Class I Shares prior to that date. The historical performance has not been
adjusted to reflect the Fund's T or L Share expenses. If it had been, the
performance would have been lower.
The Class A Shares began operating on October 11, 2004. Performance between
December 29, 2000 to December 21, 2001 and December 21, 2001 to October 11,
2004 is that of the Class I Shares and Class P Shares, respectively, of the
Seix Core Bond Fund, the Fund's predecessor. The performance of the
predecessor fund's Class I Shares has not been adjusted to reflect the Fund's
A Share expenses. If it had been, the performance would have been lower.
20
CLASSIC INSTITUTIONAL CASH MANAGEMENT MONEY MARKET FUND
- --------------------------------------------------------------------------------
PORTFOLIO MANAGER(S)
- - Robert Bowman, CFA
- --------------------------------------------------------------------------------
INVESTMENT CONCERNS
- --------------------------------------------------------------------------------
AN INVESTMENT IN THE FUND IS NOT INSURED OR GUARANTEED BY THE FDIC OR ANY OTHER
GOVERNMENT AGENCY. ALTHOUGH THE FUND SEEKS TO PRESERVE THE VALUE OF YOUR
INVESTMENT AT $1.00 PER SHARE, IT IS POSSIBLE TO LOSE MONEY BY INVESTING IN THE
FUND.
- --------------------------------------------------------------------------------
MANAGEMENT DISCUSSION & ANALYSIS
- --------------------------------------------------------------------------------
Q: WHAT FACTORS INFLUENCED THE FUND'S PERFORMANCE FOR THE PERIOD ENDED MARCH
31, 2005?
A: The Fund was positioned for a rising rate environment by overweighting
floating rate assets and maintaining short maturities. The Federal Reserve
Board (the "Fed") has increased interest rates seven times this cycle
benefiting the performance of the Fund.(1)
Q: HOW DO YOU PLAN TO POSITION THE FUND, BASED ON MARKET CONDITIONS?
A: We believe the Fed will continue to raise rates in an effort to guard
against a rise in inflation if the economy continues to expand. We do
expect the Fed will continue to transition monetary policy from an
accommodative stance to neutral over the balance of the year. With this in
mind, we believe the portfolio is structured to potentially benefit from a
rising rate policy by the Fed.
- --------------------------------------------------------------------------------
YIELDS AND MATURITY COMPOSITION
- --------------------------------------------------------------------------------
YIELDS (as of March 31, 2005) INSTITUTIONAL
SHARES
- -------------------------------------------------
7 Day Average Yield 2.57%
7 Day Effective Yield 2.60%
30 Day Yield 2.47%
PAST PERFORMANCE DOES NOT GUARANTEE FUTURE RESULTS.
The yield quotation more closely reflects the current earnings of the Fund than
the total return.
[PIE CHART]
MATURITY DISTRIBUTION (as of March 31, 2005)(1)
as a percentage of total investments
1-2 Day 20.7%
3-14 Days 36.6%
15-29 Days 15.9%
30-59 Days 12.0%
60-89 Days 6.5%
90-179 Days 8.3%
(1)PORTFOLIO COMPOSITION IS SUBJECT TO CHANGE
21
CLASSIC INSTITUTIONAL U.S. GOVERNMENT SECURITIES MONEY MARKET FUND
- --------------------------------------------------------------------------------
PORTFOLIO MANAGER(S)
- - Robert Bowman, CFA
- --------------------------------------------------------------------------------
INVESTMENT CONCERNS
- --------------------------------------------------------------------------------
AN INVESTMENT IN THE FUND IS NOT INSURED OR GUARANTEED BY THE FDIC OR ANY OTHER
GOVERNMENT AGENCY. ALTHOUGH THE FUND SEEKS TO PRESERVE THE VALUE OF YOUR
INVESTMENT AT $1.00 PER SHARE, IT IS POSSIBLE TO LOSE MONEY BY INVESTING IN THE
FUND.
U.S. GOVERNMENT GUARANTEES APPLY ONLY TO THE UNDERLYING SECURITIES OF THE FUND'S
PORTFOLIO AND NOT THE FUNDS SHARES.
- --------------------------------------------------------------------------------
MANAGEMENT DISCUSSION & ANALYSIS
- --------------------------------------------------------------------------------
Q: WHAT FACTORS INFLUENCED THE FUND'S PERFORMANCE FOR THE PERIOD ENDED MARCH
31, 2005?
A: The Fund was positioned for a rising rate environment by overweighting
floating rate assets and maintaining short maturities. The Federal Reserve
Board (the "Fed") has increased interest rates seven times this cycle
benefiting the performance of the Fund.(1)
Q: HOW DO YOU PLAN TO POSITION THE FUND, BASED ON MARKET CONDITIONS?
A: We believe the Fed will continue to raise rates in an effort to guard
against a rise in inflation if the economy continues to expand. We do
expect the Fed will continue to transition monetary policy from an
accommodative stance to neutral over the balance of the year. With this in
mind, we believe the portfolio is structured to potentially benefit from a
rising rate policy by the Fed.
- --------------------------------------------------------------------------------
YIELDS AND MATURITY COMPOSITION
- --------------------------------------------------------------------------------
YIELDS (as of March 31, 2005) INSTITUTIONAL
SHARES
- ------------------------------------------------
7 Day Average Yield 2.48%
7 Day Effective Yield 2.51%
30 Day Yield 2.37%
PAST PERFORMANCE DOES NOT GUARANTEE FUTURE RESULTS.
The yield quotation more closely reflects the current earnings of the Fund than
the total return.
MATURITY DISTRIBUTION (as of March 31, 2005)(1)
as a percentage of total investments
1 Day 19.8%
2-15 Days 18.8%
16-30 Days 25.3%
31-90 Days 26.1%
91-397 Days 10.0%
(1)PORTFOLIO COMPOSITION IS SUBJECT TO CHANGE
22
CLASSIC INSTITUTIONAL U.S. TREASURY SECURITIES MONEY MARKET FUND
- --------------------------------------------------------------------------------
PORTFOLIO MANAGER(S)
- - E. Dean Speer, CPA, CFA
- - Kimberly C. Maichle, CFA
- - Greg Hallman
- --------------------------------------------------------------------------------
INVESTMENT CONCERNS
- --------------------------------------------------------------------------------
AN INVESTMENT IN THE FUND IS NOT INSURED OR GUARANTEED BY THE FDIC OR ANY OTHER
GOVERNMENT AGENCY. ALTHOUGH THE FUND SEEKS TO PRESERVE THE VALUE OF YOUR
INVESTMENT AT $1.00 PER SHARE, IT IS POSSIBLE TO LOSE MONEY BY INVESTING IN THE
FUND.
- --------------------------------------------------------------------------------
MANAGEMENT DISCUSSION & ANALYSIS
- --------------------------------------------------------------------------------
Q: WHAT FACTORS INFLUENCED THE FUND'S PERFORMANCE FOR THE PERIOD ENDED MARCH
31, 2005?
A: The Fund was positioned for a rising rate environment by overweighting
floating rate assets and maintaining short maturities. The Federal Reserve
Board (the "Fed") has increased interest rates seven times this cycle
benefiting the performance of the Fund.(1)
Q: HOW DO YOU PLAN TO POSITION THE FUND, BASED ON MARKET CONDITIONS?
A: We believe the Fed will continue to raise rates in an effort to guard
against inflation if the economy continues to expand. We do expect the Fed
will continue to transition monetary policy from an accommodative stance to
neutral over the balance of the year. With this in mind, we believe the
portfolio is structured to potentially benefit from a rising rate policy by
the Fed.
- --------------------------------------------------------------------------------
YIELDS AND MATURITY COMPOSITION
- --------------------------------------------------------------------------------
YIELDS (as of March 31, 2005) INSTITUTIONAL CORPORATE
SHARES TRUST SHARES
- ------------------------------------------------------------------
7 Day Average Yield 2.28% 2.08%
7 Day Effective Yield 2.30% 2.10%
30 Day Yield 2.21% 2.01%
PAST PERFORMANCE DOES NOT GUARANTEE FUTURE RESULTS.
The yield quotation more closely reflects the current earnings of the Fund than
the total return.
MATURITY DISTRIBUTION (as of March 31, 2005)(1)
as a percentage of total investments
1 Day 51.0%
2-15 Days 28.4%
16-30 Days 7.3%
31-90 Days 5.9%
91-397 Days 7.4%
(1)PORTFOLIO COMPOSITION IS SUBJECT TO CHANGE
23
INVESTMENT ADVISER:
Trusco Capital Management, Inc.
This information must be preceded or accompanied by
a current prospectus for each Fund described. An
investor should consider the Fund's investment
objectives, risks, charges and expenses carefully before
investing or sending money. This and other important
information about STI Classic Funds can be found
in the Fund's prospectus. For additional information
please call 1-800-428-6970, option 1, or by visiting our
Website at www.sticlassicfunds.com. Please read the
prospectus carefully before investing.
DISTRIBUTOR:
BISYS Fund Service LP
----------------------------------------------------------
Not FDIC Insured - No Bank Guarantee - May Lose Value
----------------------------------------------------------
[STI CLASSIC FUNDS LOGO]
STI-AR-IN 0305
06/05
CLASSIC INSTITUTIONAL CORE BOND FUND
<Table>
<Caption>
- --------------------------------------------------------
Principal
Amount Value
- --------------------------------------------------------
ASSET BACKED SECURITIES (1.6%)
CREDIT CARD ABS (0.7%)
BA Master Credit Card Trust,
Ser 2001, Cl A, 2.930%,
06/15/08 (b) $ 1,664 $ 1,666
Bank One Issuance Trust, Ser
2003, Cl A2, 2.860%,
10/15/08 (b) 276 276
Citibank Credit Card Issuance
Trust, Ser 2002, Cl A5,
3.050%, 09/17/07 (b) 143 143
--------
2,085
--------
FANNIE MAE (0.0%)
Guarantor Trust, Ser 2002-T10,
Cl A1, 2.970%, 06/25/32 (b) 40 40
Guarantor Trust, Ser 2002-T13,
Cl A1, 2.950%, 08/25/32 (b) 82 81
--------
121
--------
FREDDIE MAC (0.0%)
Structured Pass Thru Security,
Ser T-49, Cl AV, 3.000%,
12/25/32 (b) 43 43
--------
HOME EQUITY ABS (0.1%)
Aames Mortgage Trust, Ser
1999-2, Cl AF, 7.589%,
10/15/29 27 28
Cityscape Home Equity Loan
Trust, Ser 1996-3, Cl A8,
7.650%, 09/25/25 40 40
Delta Funding Home Equity Loan
Trust, Ser 1999-3, Cl A1F,
7.462%, 09/15/29 14 14
EQCC Home Equity Loan Trust,
Ser 1999-3, Cl A7F, 7.448%,
08/25/30 12 12
Mellon Bank Home Equity Loan
Trust, Ser 2001-1, Cl A,
3.090%, 03/20/27 (b) 106 107
MSDWCC Home Equity Line of
Credit Trust, Ser 2003-1, Cl
A, 3.120%, 11/25/15 (b) 139 139
New Century Home Equity Loan
Trust, Ser 1999-NCB, Cl A7,
7.540%, 06/25/29 15 15
Residential Funding Mortgage
Securities I, Ser 2003-HS1,
Cl AII, 3.140%, 12/25/32 (b) 43 43
</Table>
<Table>
<Caption>
- --------------------------------------------------------
Principal
Amount Value
- --------------------------------------------------------
HOME EQUITY ABS--CONTINUED
Soundview Home Equity Loan
Trust, Ser 2001-1, Cl A,
6.265%, 04/15/31 $ 20 $ 20
--------
418
--------
OTHER ABS (0.8%)
Amortizing Residential
Collateral Trust, Ser
2002-BC1F, Cl A, 3.130%,
01/25/32 (b) 135 135
Amortizing Residential
Collateral Trust, Ser
2002-BC3M, Cl A, 3.120%,
06/25/32 (b) 99 99
Countrywide Home Equity Loan
Trust, Ser 2002-B, Cl A,
3.060%, 04/15/28 (b) 602 602
Countrywide Home Equity Loan
Trust, Ser 2002-D, Cl A,
3.050%, 08/15/28 (b) 295 295
Fleet Home Equity Loan Trust,
Ser 2003-1, Cl A, 3.100%,
01/20/33 (b) 108 108
Greenpoint Home Equity Loan
Trust, Ser 2003-1, Cl A,
3.080%, 04/15/29 (b) 97 97
Merrill Lynch Home Equity Loan,
Ser 1997-1, Cl A, 3.030%,
09/25/27 (b) 49 49
Residential Asset Mortgage
Products, Inc., Ser 2003-RS2,
Cl AII, 3.190%, 03/25/33 (b) 0(+) 1
Wachovia Asset Securitization,
Inc., Ser 2002-HE2, Cl A,
3.280%, 12/25/32 (b) 311 313
Wachovia Asset Securitization,
Inc., Ser 2003-HE1, Cl A1,
3.140%, 03/25/33 (b) 398 398
--------
2,097
--------
Total Asset Backed Securities
(Cost $4,760) 4,764
--------
CORPORATE BONDS (11.4%)
AIRLINES (0.3%)
Southwest Airlines Co., 5.125%,
03/01/17 930 873
--------
AUTO MANUFACTURERS (0.8%)
DaimlerChrysler NA Holdings,
8.500%, 01/18/31 522 630
Ford Motor Co., 7.450%,
07/16/31 1,950 1,764
--------
2,394
--------
</Table>
24
SCHEDULE OF PORTFOLIO INVESTMENTS
STI CLASSIC FUNDS March 31, 2005 (Amounts in thousands, except shares)
CLASSIC INSTITUTIONAL CORE BOND FUND -- CONTINUED
<Table>
<Caption>
- --------------------------------------------------------
Principal
Amount Value
- --------------------------------------------------------
BANKS (0.5%)
Bank of America Corp., 7.400%,
01/15/11 $ 1,075 $ 1,212
BNP US Funding LLC, 7.738%,
Callable 12/05/07 @
100 (b) (d) (i) 240 259
--------
1,471
--------
BUILDING MATERIALS (0.1%)
American Standard, Inc.,
7.625%, 02/15/10 140 156
--------
COMMERCIAL SERVICES (0.0%)
ERAC USA Finance Co., 7.350%,
06/15/08 (d) 135 146
--------
COMPUTERS (0.0%)
NCR Corp., 7.125%, 06/15/09 70 75
--------
DIVERSIFIED FINANCIAL SERVICES (3.1%)
Capital One Financial Corp.,
4.800%, 02/21/12 605 588
CIT Group, Inc., 5.125%,
09/30/14 830 819
Citigroup, Inc., 5.125%,
05/05/14 450 450
Citigroup, Inc., 5.875%,
02/22/33 590 597
Fund American Cos., Inc.,
5.875%, 05/15/13 1,120 1,138
Goldman Sachs Group, Inc.
(The), 3.875%, 01/15/09 385 375
Goldman Sachs Group, Inc.
(The), 4.750%, 07/15/13 1,015 976
HSBC Holdings PLC, 7.625%,
05/17/32 (d) 420 524
John Deere Capital Corp.,
3.900%, 01/15/08 275 271
JPMorgan Chase & Co., 6.625%,
03/15/12 1,025 1,121
MBNA Corp., 7.500%, 03/15/12 330 372
MBNA Corp., 6.125%, 03/01/13 680 717
Merrill Lynch & Co., Inc.,
3.700%, 04/21/08 285 279
Merrill Lynch & Co., Inc.,
5.000%, 01/15/15 635 615
Morgan Stanley, 5.300%,
03/01/13 755 759
--------
9,601
--------
ELECTRIC (0.7%)
Dominion Resources, Inc., Ser
E, 6.750%, 12/15/32 325 354
Entergy Gulf States, Inc.,
4.875%, 11/01/11, Callable
11/01/06 @ 100 310 305
</Table>
<Table>
<Caption>
- --------------------------------------------------------
Principal
Amount Value
- --------------------------------------------------------
ELECTRIC--CONTINUED
Northern States Power Co.,
2.875%, 08/01/06 $ 165 $ 163
Oncor Electric Delivery Co.,
7.000%, 05/01/32 285 329
Pacific Gas & Electric Co.,
6.050%, 03/01/34 860 883
Public Service Co. of Colorado,
Ser 14, 4.375%, 10/01/08 130 129
--------
2,163
--------
ENTERTAINMENT (0.0%)
GTECH Holdings Corp., 4.750%,
10/15/10 80 79
--------
FOREST PRODUCTS & PAPER (0.1%)
Weyerhaeuser Co., 7.375%,
03/15/32 235 275
--------
HOME BUILDERS (0.3%)
Lennar Corp., 5.950%, 03/01/13 330 339
Pulte Homes, Inc., 4.875%,
07/15/09 470 464
--------
803
--------
INSURANCE (0.4%)
MetLife, Inc., 5.250%, 12/01/06 195 199
Monumental Global Funding,
5.200%, 01/30/07 (d) 105 107
Prudential Financial, Inc.,
3.750%, 05/01/08 325 318
Prudential Financial, Inc.,
5.100%, 09/20/14 450 446
--------
1,070
--------
INVESTMENT COMPANIES (0.2%)
Credit Suisse First Boston USA,
Inc., 6.500%, 01/15/12 480 519
--------
LEISURE TIME (0.0%)
Harley Davidson Funding Corp.,
3.625%, 12/15/08 (d) 90 88
--------
LODGING (0.2%)
Harrah's Operating Co., Inc.,
5.375%, 12/15/13 378 375
Marriott International, Inc.,
Ser C, 7.875%, 09/15/09 85 95
--------
470
--------
MEDIA (1.3%)
British Sky Broadcasting Group
PLC, 6.875%, 02/23/09 295 316
Comcast Cable Communications,
Inc., 7.125%, 06/15/13 1,055 1,174
</Table>
25
<Table>
<Caption>
- --------------------------------------------------------
Principal
Amount Value
- --------------------------------------------------------
MEDIA--CONTINUED
Comcast Cable Communications,
Inc., 7.050%, 03/15/33 $ 80 $ 89
Cox Communications, Inc.,
4.625%, 06/01/13 540 503
News America Holdings, Inc.,
9.250%, 02/01/13 470 586
News America Holdings, Inc.,
6.200%, 12/15/34 (d) 200 198
Time Warner, Inc., 7.625%,
04/15/31 785 922
--------
3,788
--------
MINING (0.2%)
Codelco, Inc., 5.500%,
10/15/13 (d) 640 647
--------
MISCELLANEOUS MANUFACTURER (0.7%)
General Electric Co., 5.000%,
02/01/13 1,990 1,987
--------
OIL & GAS (0.4%)
Devon Energy Corp., 10.250%,
11/01/05 25 26
Devon Financing Corp. ULC,
7.875%, 09/30/31 355 443
Enterprise Products Operating
LP, Ser B, 6.875%, 03/01/33 405 424
Motiva Enterprises LLC, 5.200%,
09/15/12 (d) 240 243
--------
1,136
--------
PACKAGING & CONTAINERS (0.1%)
Packaging Corp. of America,
5.750%, 08/01/13 280 277
--------
PIPELINES (0.7%)
Centerpoint Energy Resources
Corp., Ser B, 7.875%,
04/01/13 655 759
K N Capital Trust III, 7.630%,
04/15/28 510 587
Kinder Morgan, Inc., 7.250%,
03/01/28 280 317
Panhandle Eastern Pipe Line Co.
LLC, 2.750%, 03/15/07 70 68
Panhandle Eastern Pipe Line Co.
LLC, Ser B, 4.800%, 08/15/08 260 260
--------
1,991
--------
REITS (0.1%)
Simon Property Group LP,
6.375%, 11/15/07 275 287
--------
RETAIL (0.1%)
Federated Department Stores,
Inc., 6.900%, 04/01/29 220 236
--------
</Table>
<Table>
<Caption>
- --------------------------------------------------------
Principal
Amount Value
- --------------------------------------------------------
SAVINGS & LOANS (0.1%)
Golden West Financial Corp.,
4.125%, 08/15/07 $ 340 $ 339
--------
TELECOMMUNICATIONS (1.0%)
Deutsche Telekom International
Finance, 9.250%, 06/01/32 325 469
SBC Communications, Inc.,
5.625%, 06/15/16 95 95
SBC Communications, Inc.,
6.450%, 06/15/34 250 260
Sprint Capital Corp., 8.750%,
03/15/32 900 1,168
Telus Corp., 8.000%, 06/01/11 540 625
Verizon Global Funding Corp.,
7.750%, 12/01/30 405 489
--------
3,106
--------
Total Corporate Bonds (Cost
$34,284) 33,977
--------
FOREIGN GOVERNMENT BONDS (0.4%)
MEXICO (0.4%)
Mexican United States, 8.300%,
08/15/31 1,130 1,294
--------
Total Foreign Government Bonds
(Cost $1,300) 1,294
--------
U.S. GOVERNMENT AGENCIES (28.7%)
FANNIE MAE (13.7%)
6.000%, 01/01/14 164 169
6.000%, 08/01/16 90 93
6.000%, 03/01/18 69 72
5.500%, 04/01/18 1,700 1,733
4.500%, 10/01/18 396 388
6.000%, 12/01/18 81 84
5.500%, 07/01/19 2,783 2,840
5.000%, 08/01/19 253 253
5.500%, 08/01/19 862 879
5.000%, 09/01/19 165 165
5.500%, 09/01/19 268 273
5.000%, 10/01/19 287 287
5.000%, 10/01/19 182 182
6.000%, 11/01/19 173 179
5.500%, 12/01/19 74 75
4.500%, 04/15/20 4,685 4,581
5.000%, 04/15/20 11,548 11,538
6.500%, 09/01/24 30 31
6.500%, 12/01/27 8 9
6.500%, 05/01/28 3 3
6.500%, 11/01/28 14 15
6.500%, 02/01/29 44 46
6.500%, 05/01/29 57 60
6.500%, 02/01/30 8 8
</Table>
26
SCHEDULE OF PORTFOLIO INVESTMENTS
STI CLASSIC FUNDS March 31, 2005 (Amounts in thousands, except shares)
CLASSIC INSTITUTIONAL CORE BOND FUND -- CONCLUDED
<Table>
<Caption>
- --------------------------------------------------------
Principal
Amount Value
- --------------------------------------------------------
FANNIE MAE--CONTINUED
6.000%, 04/01/31 $ 37 $ 38
7.000%, 04/01/31 101 106
7.000%, 06/01/31 11 11
7.000%, 11/01/31 44 47
7.000%, 12/01/31 188 198
6.500%, 06/01/32 112 116
7.000%, 07/01/32 209 220
7.000%, 07/01/32 409 432
6.500%, 10/01/32 26 27
6.500%, 11/01/32 16 17
6.500%, 11/01/32 24 25
5.500%, 02/01/33 523 524
6.500%, 02/01/33 38 40
5.500%, 03/01/33 137 137
6.500%, 03/01/33 467 485
5.000%, 04/01/33 41 40
5.500%, 04/01/33 254 255
5.500%, 04/01/33 171 171
5.500%, 04/01/33 169 170
7.000%, 04/01/33 98 104
5.500%, 05/01/33 167 167
6.500%, 05/01/33 80 83
7.000%, 05/01/33 26 28
5.500%, 06/01/33 85 85
7.000%, 06/01/33 22 23
5.500%, 07/01/33 60 60
5.000%, 08/01/33 701 685
5.500%, 08/01/33 215 215
7.000%, 08/01/33 38 41
6.500%, 09/01/33 323 335
5.500%, 10/01/33 143 144
5.500%, 10/01/33 45 45
6.500%, 10/01/33 31 32
6.500%, 10/01/33 110 114
6.500%, 10/01/33 162 169
6.500%, 10/01/33 130 135
7.000%, 10/01/33 29 30
7.000%, 10/01/33 25 27
5.500%, 11/01/33 152 152
5.500%, 11/01/33 108 108
5.500%, 11/01/33 721 722
6.000%, 11/01/33 114 116
6.000%, 11/01/33 73 75
6.000%, 11/01/33 229 234
6.500%, 11/01/33 131 136
6.500%, 11/01/33 39 41
7.000%, 11/01/33 25 26
6.000%, 12/01/33 104 106
6.000%, 12/01/33 85 87
6.000%, 12/01/33 401 410
7.000%, 12/01/33 222 234
</Table>
<Table>
<Caption>
- --------------------------------------------------------
Principal
Amount Value
- --------------------------------------------------------
FANNIE MAE--CONTINUED
6.500%, 01/01/34 $ 202 $ 210
7.000%, 01/01/34 1,308 1,379
6.000%, 03/01/34 126 129
6.500%, 03/01/34 374 388
5.500%, 04/01/34 532 531
6.000%, 04/01/34 145 148
6.000%, 04/01/34 121 124
6.000%, 04/01/34 127 129
6.500%, 04/15/34 1,300 1,349
6.000%, 05/01/34 106 108
6.000%, 05/01/34 269 275
6.000%, 05/01/34 120 123
6.500%, 05/01/34 350 363
6.500%, 06/01/34 18 18
6.500%, 07/01/34 212 220
7.000%, 07/01/34 199 210
6.500%, 10/01/34 245 255
6.000%, 01/01/35 2,829 2,893
--------
40,843
--------
FREDDIE MAC (14.0%)
8.500%, 03/01/20 2 2
6.000%, 01/01/29 104 107
6.500%, 10/01/29 51 53
6.000%, 12/01/31 1,893 1,940
6.500%, 07/01/32 194 201
5.000%, 02/01/33 700 687
6.000%, 04/01/33 2,000 2,047
5.500%, 05/01/33 21 21
5.000%, 06/01/33 141 138
5.500%, 06/01/33 144 145
5.500%, 06/01/33 131 131
5.000%, 07/01/33 247 243
5.500%, 10/01/33 123 124
6.000%, 10/01/33 43 44
6.000%, 12/01/33 175 179
5.000%, 01/01/34 245 240
6.000%, 01/01/34 368 377
6.000%, 01/01/34 74 76
6.000%, 01/01/34 111 113
6.000%, 02/01/34 579 593
6.500%, 03/01/34 81 84
6.500%, 05/01/34 4,385 4,550
6.000%, 06/01/34 224 229
6.000%, 07/01/34 157 161
6.000%, 08/01/34 185 190
6.000%, 08/01/34 36 36
6.500%, 08/01/34 150 156
5.000%, 11/01/34 592 580
5.000%, 12/01/34 224 219
5.000%, 12/01/34 411 403
</Table>
27
<Table>
<Caption>
- --------------------------------------------------------
Principal
Amount Value
- --------------------------------------------------------
FREDDIE MAC--CONTINUED
5.000%, 12/01/34 $ 579 $ 567
6.000%, 04/13/35 2,400 2,455
5.000%, 04/15/35 10,153 9,930
5.500%, 04/15/35 14,796 14,832
--------
41,853
--------
GOVERNMENT NATIONAL MORTGAGE ASSOCIATION (1.0%)
6.500%, 04/15/32 39 40
6.500%, 07/15/32 25 27
6.500%, 08/15/32 68 71
6.500%, 11/15/32 38 40
6.500%, 01/15/33 59 62
6.000%, 03/15/33 36 38
6.000%, 04/15/33 110 114
5.000%, 07/15/33 145 143
5.000%, 08/15/33 143 142
6.000%, 01/15/34 446 457
6.500%, 07/15/34 398 416
5.000%, 11/15/34 197 195
6.000%, 11/15/34 116 120
5.000%, 12/15/34 116 115
5.000%, 01/15/35 880 868
--------
2,848
--------
Total U.S. Government Agencies
(Cost $85,852) 85,544
--------
U.S. TREASURY OBLIGATIONS (63.2%)
U.S. TREASURY BILLS (7.7%)
2.656%, 07/14/05 (c) 23,000 22,818
--------
U.S. TREASURY BONDS (4.9%)
10.750%, 08/15/05 6,889 7,089
5.375%, 02/15/31 6,825 7,438
--------
14,527
--------
U.S. TREASURY INFLATION PROTECTED NOTES/BONDS (8.6%)
1.875%, 07/15/13 17,048 17,346
3.875%, 04/15/29 6,078 8,360
--------
25,706
--------
</Table>
<Table>
<Caption>
- --------------------------------------------------------
Principal
Amount Value
- --------------------------------------------------------
U.S. TREASURY NOTES (42.0%)
1.625%, 04/30/05 $ 1,270 $ 1,269
3.500%, 11/15/06 32,520 32,418
3.375%, 02/28/07 12,245 12,156
3.125%, 05/15/07 25,790 25,426
6.000%, 08/15/09 28,520 30,648
4.000%, 03/15/10 7,585 7,526
4.875%, 02/15/12 2,100 2,168
3.875%, 02/15/13 9,975 9,629
4.250%, 11/15/14 1,789 1,752
4.000%, 02/15/15 1,905 1,830
--------
124,822
--------
Total U.S. Treasury Obligations
(Cost $188,506) 187,873
--------
REPURCHASE AGREEMENTS (10.2%)
Lehman Brothers, Inc., 2.840%,
dated 03/31/05, to be
repurchased on 04/01/05,
repurchase price $30,387,342
(collateralized by U.S.
Government Agencies, 5.000%,
due 02/01/34, total market
value $30,994,895) 30,385 30,385
--------
Total Repurchase Agreements (Cost
$30,385) 30,385
--------
Total Investments (Cost $345,087)
(a) -- 115.5% 343,837
Liabilities in excess of other
assets -- (15.5)% (46,065)
--------
Net Assets -- 100.0% $297,772
========
</Table>
See notes to schedules of portfolio investments and notes to financial
statements.
28
SCHEDULE OF PORTFOLIO INVESTMENTS
STI CLASSIC FUNDS March 31, 2005 (Amounts in thousands, except shares)
CLASSIC INSTITUTIONAL HIGH QUALITY BOND FUND
<Table>
<Caption>
- --------------------------------------------------------
Principal
Amount Value
- --------------------------------------------------------
CORPORATE BONDS (15.7%)
AUTO MANUFACTURERS (0.3%)
DaimlerChrysler NA Holdings
Corp., 7.300%, 01/15/12 $ 150 $ 164
-------
BANKS (1.7%)
Bank of America Corp., 7.400%,
01/15/11 695 783
Bank One Corp., 7.625%, 08/01/05 320 325
-------
1,108
-------
BIOTECHNOLOGY (0.5%)
Amgen, Inc., 4.000%,
11/18/09 (d) 315 307
-------
DIVERSIFIED FINANCIAL SERVICES (7.4%)
American Express Co., 3.750%,
11/20/07 550 542
Caterpillar Financial Services
Corp., 4.500%, 06/15/09 420 417
CIT Group, Inc., 5.125%,
09/30/14 195 192
Citigroup, Inc., 5.125%,
05/05/14 540 540
Ford Motor Credit Co., 7.000%,
10/01/13 570 552
Goldman Sachs Group, Inc. (The),
4.750%, 07/15/13 655 630
Household Finance Corp., 6.375%,
11/27/12 635 688
JPMorgan Chase & Co., 6.625%,
03/15/12 580 634
Merrill Lynch & Co., Inc.,
3.700%, 04/21/08 95 93
Merrill Lynch & Co., Inc.,
5.000%, 01/15/15 135 131
Morgan Stanley, 5.300%, 03/01/13 335 337
-------
4,756
-------
ELECTRIC (0.4%)
Consolidated Edison Co. of New
York, Inc., 4.700%, 06/15/09 225 226
Florida Power & Light Co.,
6.875%, 12/01/05 55 56
-------
282
-------
INSURANCE (0.7%)
MetLife, Inc., 5.250%, 12/01/06 225 230
Prudential Financial, Inc.,
3.750%, 05/01/08 135 132
Prudential Financial, Inc.,
5.100%, 09/20/14 85 84
-------
446
-------
</Table>
<Table>
<Caption>
- --------------------------------------------------------
Principal
Amount Value
- --------------------------------------------------------
INVESTMENT COMPANIES (0.4%)
Credit Suisse First Boston USA,
Inc., 6.500%, 01/15/12 $ 235 $ 254
-------
MISCELLANEOUS MANUFACTURER (2.0%)
General Electric Co., 5.000%,
02/01/13 1,265 1,263
-------
RETAIL (0.4%)
Wal-Mart Stores, Inc., 4.550%,
05/01/13 280 275
-------
SAVINGS & LOANS (0.3%)
Golden West Financial Corp.,
4.125%, 08/15/07 185 185
-------
SOFTWARE (0.9%)
First Data Corp., 4.700%,
11/01/06 560 565
-------
TELECOMMUNICATIONS (0.7%)
SBC Communications, Inc.,
5.625%, 06/15/16 85 85
Verizon Global Funding Corp.,
7.250%, 12/01/10 320 355
-------
440
-------
Total Corporate Bonds (Cost
$10,153) 10,045
-------
U.S. GOVERNMENT AGENCIES (0.9%)
FANNIE MAE (0.9%)
5.725%, 03/01/12 232 242
6.260%, 05/01/12 312 335
-------
Total U.S. Government Agencies
(Cost $586) 577
-------
U.S. TREASURY OBLIGATIONS (80.7%)
U.S. TREASURY INFLATION PROTECTED NOTES/BONDS (9.3%)
1.875%, 07/15/13 5,840 5,942
-------
U.S. TREASURY NOTES (71.4%)
3.500%, 11/15/06 16,060 16,010
3.375%, 02/28/07 115 114
3.125%, 05/15/07 14,740 14,532
3.125%, 04/15/09 1,000 964
6.000%, 08/15/09 10,925 11,740
3.875%, 02/15/13 1,875 1,810
4.000%, 02/15/15 510 490
-------
45,660
-------
Total U.S. Treasury Obligations
(Cost $51,979) 51,602
-------
</Table>
29
<Table>
<Caption>
- --------------------------------------------------------
Principal
Amount Value
- --------------------------------------------------------
REPURCHASE AGREEMENTS (2.3%)
Merrill Lynch & Co., Inc.,
2.820%, dated 03/31/05, to be
repurchased on 04/01/05,
repurchase price $1,469,657
(collateralized by U.S.
Government Agencies, 5.500%,
due 03/01/34; total market
value $1,499,692) $ 1,470 $ 1,470
-------
Total Repurchase Agreements (Cost
$1,470) 1,470
-------
Total Investments (Cost $64,188)
(a) -- 99.6% 63,694
Other assets in excess of
liabilities -- 0.4% 287
-------
Net Assets -- 100.0% $63,981
=======
</Table>
See notes to schedules of portfolio investments and notes to financial
statements.
30
SCHEDULE OF PORTFOLIO INVESTMENTS
STI CLASSIC FUNDS March 31, 2005 (Amounts in thousands, except shares)
CLASSIC INSTITUTIONAL INTERMEDIATE BOND FUND
<Table>
<Caption>
- ---------------------------------------------------------
Principal
Amount Value
- ---------------------------------------------------------
ASSET BACKED SECURITIES (0.5%)
HOME EQUITY ABS (0.5%)
Aames Mortgage Trust, Ser 1999-2,
Cl AF, 7.589%, 10/15/29 $ 48 $ 49
Cityscape Home Equity Loan Trust,
Ser 1996-3, Cl A8, 7.650%,
09/25/25 20 20
Contimortgage Home Equity Loan
Trust, Ser 1996-2, Cl A8,
7.900%, 07/15/27 115 116
Delta Funding Home Equity Loan
Trust, Ser 1999-3, Cl A1F,
7.462%, 09/15/29 13 14
EQCC Home Equity Loan Trust, Ser
1999-3, Cl A7F, 7.448%,
08/25/30 12 12
New Century Home Equity Loan
Trust, Ser 1999-NCB, Cl A7,
7.540%, 06/25/29 11 11
Soundview Home Equity Loan Trust,
Ser 2001-1, Cl A, 6.265%,
04/15/31 48 49
-------
Total Asset Backed Securities (Cost
$274) 271
-------
CORPORATE BONDS (19.7%)
AIRLINES (0.5%)
Southwest Airlines Co., 5.125%,
03/01/17 285 267
-------
AUTO MANUFACTURERS (0.6%)
DaimlerChrysler NA Holdings
Corp., 7.300%, 01/15/12 310 338
-------
BANKS (1.7%)
Bank of America Corp., 7.400%,
01/15/11 355 400
BNP US Funding LLC, 7.738%,
Callable 12/05/07 @ 100 (b) (d)
(i) 260 280
Wells Fargo & Co., 5.125%,
02/15/07 270 275
-------
955
-------
BUILDING MATERIALS (0.2%)
American Standard, Inc., 7.625%,
02/15/10 105 117
-------
COMMERCIAL SERVICES (0.1%)
ERAC USA Finance Co., 7.350%,
06/15/08 (d) 60 65
-------
</Table>
<Table>
<Caption>
- ---------------------------------------------------------
Principal
Amount Value
- ---------------------------------------------------------
COMPUTERS (0.1%)
NCR Corp., 7.125%, 06/15/09 $ 60 $ 65
-------
DIVERSIFIED FINANCIAL SERVICES (8.6%)
Capital One Financial Corp.,
4.800%, 02/21/12 130 126
CIT Group, Inc., 5.125%, 09/30/14 250 247
Citigroup, Inc., 5.125%, 05/05/14 330 330
Ford Motor Credit Co., 7.000%,
10/01/13 535 518
Fund American Cos., Inc., 5.875%,
05/15/13 350 355
General Electric Capital Corp.,
4.250%, 01/15/08 715 713
Goldman Sachs Group, Inc. (The),
4.750%, 07/15/13 310 298
Household Finance Corp., 4.125%,
12/15/08 555 545
John Deere Capital Corp., 3.900%,
01/15/08 95 94
JPMorgan Chase & Co., 6.625%,
03/15/12 330 361
MBNA Corp., 6.125%, 03/01/13 330 348
Merrill Lynch & Co., Inc.,
3.700%, 04/21/08 60 59
Merrill Lynch & Co., Inc.,
5.000%, 01/15/15 185 179
Morgan Stanley, 5.800%, 04/01/07 220 226
Morgan Stanley, 5.300%, 03/01/13 185 186
SLM Corp., 5.625%, 04/10/07 85 87
-------
4,672
-------
ELECTRIC (0.2%)
Entergy Gulf States, Inc.,
4.875%, 11/01/11, Callable
11/01/06 @ 100 50 49
Northern States Power Co.,
2.875%, 08/01/06 60 59
-------
108
-------
ENTERTAINMENT (0.1%)
GTECH Holdings Corp., 4.750%,
10/15/10 40 39
-------
HOME BUILDERS (0.4%)
Lennar Corp., 5.950%, 03/01/13 50 51
Pulte Homes, Inc., 4.875%,
07/15/09 155 153
-------
204
-------
</Table>
31
<Table>
<Caption>
- ---------------------------------------------------------
Principal
Amount Value
- ---------------------------------------------------------
INSURANCE (0.5%)
MetLife, Inc., 5.250%, 12/01/06 $ 40 $ 41
Prudential Financial, Inc.,
3.750%, 05/01/08 90 88
Prudential Financial, Inc.,
5.100%, 09/20/14 140 139
-------
268
-------
INVESTMENT COMPANIES (0.3%)
Credit Suisse First Boston USA,
Inc., 6.500%, 01/15/12 160 173
-------
LEISURE TIME (0.1%)
Harley Davidson Funding Corp.,
3.625%, 12/15/08 (d) 65 63
-------
LODGING (0.2%)
Harrah's Operating Co., Inc.,
5.375%, 12/15/13 110 109
-------
MEDIA (2.0%)
British Sky Broadcasting Group
PLC, 6.875%, 02/23/09 145 156
Comcast Cable Communications,
Inc., 7.125%, 06/15/13 260 289
News America Holdings, Inc.,
9.250%, 02/01/13 220 275
Time Warner, Inc., 9.120%,
01/15/13 330 407
-------
1,127
-------
MINING (0.3%)
Codelco, Inc., 5.500%,
10/15/13 (d) 155 157
-------
MISCELLANEOUS MANUFACTURER (0.3%)
General Electric Co., 5.000%,
02/01/13 185 185
-------
OIL & GAS (0.6%)
Enterprise Products Operating LP,
Series B, 5.600%, 10/15/14 70 69
Enterprise Products Operating LP,
5.600%, 10/15/14 (d) 175 173
Motiva Enterprises LLC, 5.200%,
09/15/12 (d) 90 91
-------
333
-------
PACKAGING & CONTAINERS (0.2%)
Packaging Corp. of America,
5.750%, 08/01/13 100 99
-------
</Table>
<Table>
<Caption>
- ---------------------------------------------------------
Principal
Amount Value
- ---------------------------------------------------------
PIPELINES (0.6%)
Centerpoint Energy Resources
Corp., Ser B, 7.875%, 04/01/13 $ 220 $ 255
Kinder Morgan, Inc., 6.500%,
09/01/12 85 91
-------
346
-------
RETAIL (0.1%)
Federated Department Stores, Inc.
7.450%, 07/15/17 70 80
-------
SAVINGS & LOANS (0.2%)
Golden West Financial Corp.,
4.125%, 08/15/07 100 100
-------
TELECOMMUNICATIONS (1.8%)
Deutsche Telekom International
Finance Corp., 8.500%,
06/15/10 (g) 105 121
SBC Communications, Inc., 5.625%,
06/15/16 95 95
Sprint Capital Corp., 8.375%,
03/15/12 300 351
Telus Corp., 8.000%, 06/01/11 140 162
Verizon Global Funding Corp.,
7.250%, 12/01/10 245 272
-------
1,001
-------
Total Corporate Bonds (Cost
$10,922) 10,871
-------
FOREIGN GOVERNMENT BOND (0.6%)
MEXICO (0.6%)
United Mexican States, 6.375%,
01/16/13 335 348
-------
Total Foreign Government Bond (Cost
$339) 348
-------
U.S. GOVERNMENT AGENCIES (0.3%)
FANNIE MAE (0.2%)
6.000%, 07/01/09 111 113
-------
FREDDIE MAC (0.1%)
6.500%, 08/01/08 55 56
-------
Total U.S. Government Agencies
(Cost $168) 169
-------
U.S. TREASURY OBLIGATIONS (78.0%)
U.S. TREASURY INFLATION PROTECTED NOTES/BONDS (8.9%)
1.875%, 07/15/13 4,817 4,902
-------
U.S. TREASURY NOTES (69.1%)
1.625%, 04/30/05 45 45
3.500%, 11/15/06 9,205 9,176
3.375%, 02/28/07 4,280 4,249
3.125%, 05/15/07 9,940 9,799
3.125%, 04/15/09 625 603
</Table>
32
SCHEDULE OF PORTFOLIO INVESTMENTS
STI CLASSIC FUNDS March 31, 2005 (Amounts in thousands, except shares)
CLASSIC INSTITUTIONAL INTERMEDIATE BOND FUND -- CONCLUDED
<Table>
<Caption>
- ---------------------------------------------------------
Principal
Amount Value
- ---------------------------------------------------------
U.S. TREASURY NOTES--CONTINUED
6.000%, 08/15/09 $8,880 $ 9,542
4.000%, 03/15/10 1,695 1,682
4.875%, 02/15/12 400 413
4.375%, 08/15/12 50 50
3.875%, 02/15/13 2,165 2,090
4.000%, 02/15/15 495 476
-------
38,125
-------
Total U.S. Treasury Obligations
(Cost $43,358) 43,027
-------
</Table>
<Table>
<Caption>
- ---------------------------------------------------------
Principal
Amount Value
- ---------------------------------------------------------
REPURCHASE AGREEMENTS (1.2%)
Lehman Brothers, Inc., 2.840%,
dated 03/31/05, to be
repurchased on 04/01/05,
repurchase price $644,425
(collateralized by U.S.
Government Agencies, 5.000%,
due 02/01/34 total market value
$659,375) $ 644 $ 644
-------
Total Repurchase Agreements (Cost
$644) 644
-------
Total Investments (Cost $55,705)
(a) -- 100.3% 55,330
Liabilities in excess of other
assets -- (0.3)% (151)
-------
Net Assets -- 100.0% $55,179
=======
</Table>
See notes to schedules of portfolio investments and notes to financial
statements.
33
CLASSIC INSTITUTIONAL LIMITED DURATION FUND
<Table>
<Caption>
- --------------------------------------------------------
Principal
Amount Value
- --------------------------------------------------------
ASSET BACKED SECURITIES (37.7%)
CREDIT CARD ABS (8.9%)
American Express Master Trust,
Ser 2002-2, Cl A, 2.860%,
05/15/06 (b) $ 1,406 $ 1,406
BA Master Credit Card Trust, Ser
2001, Cl A, 2.930%,
06/15/08 (b) 3,000 3,003
Citibank Credit Card Issuance
Trust, Ser 2002, Cl A5,
3.050%, 09/17/07 (b) 3,000 3,001
-------
7,410
-------
FANNIE MAE (4.6%)
Guarantor Trust, Ser 2002-T10,
Cl A1, 2.970%, 06/25/32 (b) 1,733 1,728
Guarantor Trust, Ser 2002-T13,
Cl A1, 2.950%, 08/25/32 (b) 2,101 2,101
-------
3,829
-------
FREDDIE MAC (2.3%)
Structured Pass Thru Security,
Ser T-49, Cl AV, 3.000%,
12/25/32 (b) 1,876 1,878
-------
HOME EQUITY ABS (7.4%)
Mellon Bank Home Equity Loan
Trust, Ser 2001-1, Cl A,
3.090%, 03/20/27 (b) 1,914 1,918
Residential Asset Securities
Corp., Ser 2003-KS4, Cl AIIB,
3.140%, 06/25/33 (b) 2,551 2,554
Residential Funding Mortgage
Securities I, Ser 2003-HS1, Cl
AII, 3.140%, 12/25/32 (b) 1,652 1,654
-------
6,126
-------
OTHER ABS (14.5%)
Amortizing Residential
Collateral Trust, Ser
2002-BC1F, Cl A, 3.130%,
01/25/32 (b) 2,045 2,043
Amortizing Residential
Collateral Trust, Ser
2002-BC3M, Cl A, 3.120%,
06/25/32 (b) 1,312 1,313
Countrywide Home Equity Loan
Trust, Ser 2002-B, Cl A1,
3.060%, 04/15/28 (b) 1,867 1,867
Countrywide Home Equity Loan
Trust, Ser 2002-D, Cl A,
3.050%, 08/15/28 (b) 1,376 1,377
</Table>
<Table>
<Caption>
- --------------------------------------------------------
Principal
Amount Value
- --------------------------------------------------------
OTHER ABS--CONTINUED
Fleet Home Equity Loan Trust,
Ser 2003-1, Cl A, 3.100%,
01/20/33 (b) $ 2,329 $ 2,332
Greenpoint Home Equity Loan
Trust, Ser 2003-1, Cl A,
3.080%, 04/15/29 (b) 1,251 1,253
Merrill Lynch Home Equity Loan,
Ser 1997-1, Cl A, 3.030%,
09/25/27 (b) 224 224
Wachovia Asset Securitization,
Inc., Ser 2003-HE1, Cl A1,
3.140%, 03/25/33 (b) 1,761 1,763
-------
12,172
-------
Total Asset Backed Securities
(Cost $31,407) 31,415
-------
U.S. TREASURY OBLIGATIONS (57.2%)
U.S. TREASURY NOTES (57.2%)
6.500%, 05/15/05 8,000 8,036
6.750%, 05/15/05 9,000 9,043
1.125%, 06/30/05 10,000 9,961
1.500%, 07/31/05 10,500 10,451
6.500%, 08/15/05 10,000 10,130
-------
Total U.S. Treasury Obligations
(Cost $47,628) 47,621
-------
REPURCHASE AGREEMENTS (4.7%)
Lehman Brothers, Inc., 2.840%,
dated 03/31/05, to be
repurchased 04/01/05,
repurchase price $3,916,798
(collateralized by U.S.
Government Agencies, 5.000%,
due 02/01/34; total market
value $3,998,792) 3,916 3,916
-------
Total Repurchase Agreements (Cost
$3,916) 3,916
-------
Total Investments (Cost $82,951)
(a) -- 99.6% 82,952
Other assets in excess of
liabilities -- 0.4% 365
-------
Net Assets -- 100.0% $83,317
=======
</Table>
See notes to schedules of portfolio investments and notes to financial
statements.
34
SCHEDULE OF PORTFOLIO INVESTMENTS
STI CLASSIC FUNDS March 31, 2005 (Amounts in thousands, except shares)
CLASSIC INSTITUTIONAL SHORT-TERM BOND FUND
<Table>
<Caption>
- -------------------------------------------------------
Shares
or
Principal
Amount Value
- -------------------------------------------------------
ASSET BACKED SECURITIES (8.1%)
AUTOMOBILE ABS (4.7%)
Capital Auto Receivables Asset
Trust, 3.580%, 10/16/06 $ 248 $ 248
Capital Auto Receivables Asset
Trust, 2.640%, 03/17/08 450 446
Ford Credit Auto Owner Trust,
2.130%, 10/15/06 341 340
Honda Auto Receivables Owner
Trust, 3.610%, 12/18/07 500 500
-------
1,534
-------
CREDIT CARD ABS (3.4%)
Bank One Issuance Trust,
2.940%, 06/16/08 490 488
Citibank Credit Card Issuance
Trust, 2.550%, 01/20/09 350 341
MBNA Credit Card Master Note
Trust, 3.650%, 03/15/11 300 293
-------
1,122
-------
Total Asset Backed Securities
(Cost $2,675) 2,656
-------
COLLATERALIZED MORTGAGE OBLIGATIONS (4.5%)
Countrywide Home Loans, Inc.,
Ser 2004-21, Cl A10, 6.000%,
11/25/34 (b) 190 193
J.P. Morgan Chase Commercial
Mortgage Securities, Ser
2005-LDP1, Cl A2, 4.625%,
03/15/46 230 228
J.P. Morgan Mortgage Trust,
Ser 2005-A1, Cl 5A1, 4.484%,
02/25/35 (b) 522 516
Wachovia Bank Commercial
Mortgage Trust, Ser
2005-C16, Cl A2, 4.380%,
10/15/41 345 340
Washington Mutual, Inc., Ser
2005-AR4, Cl A1, 3.624%,
04/25/35 (b) 215 215
-------
Total Collateralized Mortgage
Obligations
(Cost $1,505) 1,492
-------
</Table>
<Table>
<Caption>
- -------------------------------------------------------
Shares
or
Principal
Amount Value
- -------------------------------------------------------
CORPORATE BONDS (32.4%)
AUTO MANUFACTURERS (2.7%)
DaimlerChrysler Auto Trust,
Ser 2004-A, Cl A2, 1.410%,
11/08/06 $ 309 $ 308
DaimlerChrysler NA Holdings
Corp., 4.750%, 01/15/08 145 144
USAA Auto Owner Trust, Ser
2004-1, Cl A3, 2.060%,
04/15/08 450 443
-------
895
-------
BANKS (3.8%)
Bank of America Corp., 5.250%,
02/01/07 355 362
Marshall & Ilsley Bank,
4.400%, 03/15/10 490 484
Wachovia Corp., 6.375%,
02/01/09 370 393
-------
1,239
-------
BEVERAGES (0.5%)
Coca-Cola Enterprises, Inc.,
5.250%, 05/15/07 165 168
-------
COSMETICS/PERSONAL CARE (0.2%)
Gillette Co. (The), 3.500%,
10/15/07, Callable 04/15/05
@ 100 80 79
-------
DIVERSIFIED FINANCIAL SERVICES (16.9%)
Bear Stearns & Co., Inc.,
5.700%, 01/15/07 275 282
Boeing Capital Corp., 5.650%,
05/15/06 72 73
Capital One Financial Corp.,
7.250%, 05/01/06 75 77
Capital One Financial Corp.,
8.750%, 02/01/07 75 81
CIT Group, Inc., 4.125%,
02/21/06 90 90
CIT Group, Inc., 4.250%,
02/01/10 245 238
Citigroup, Inc., 5.000%,
03/06/07 475 483
Countrywide Home Loan, Inc.,
5.500%, 08/01/06 350 356
Credit Suisse First Boston
USA, Inc., 5.875%, 08/01/06 325 333
Ford Motor Credit Co., 6.875%,
02/01/06 240 243
</Table>
35
<Table>
<Caption>
- -------------------------------------------------------
Shares
or
Principal
Amount Value
- -------------------------------------------------------
DIVERSIFIED FINANCIAL SERVICES--CONTINUED
Ford Motor Credit Co., 6.500%,
01/25/07 $ 130 $ 131
General Electric Capital
Corp., 5.000%, 06/15/07 225 228
Goldman Sachs Group, Inc.
(The), 4.125%, 01/15/08 335 332
HSBC Finance Corp., 4.125%,
03/11/08 325 323
International Lease Finance
Corp., 3.750%, 08/01/07 165 163
International Lease Finance
Corp., 3.500%, 04/01/09 125 120
John Deere Capital Corp., Ser
D, 3.875%, 03/07/07 160 159
JPMorgan Chase & Co., 5.250%,
05/30/07 345 352
KFW International Finance,
Inc., 4.750%, 01/24/07 335 340
Lehman Brothers Holdings,
Inc., 6.250%, 05/15/06 295 302
Merrill Lynch & Co., Inc., Ser
B, 3.375%, 09/14/07 180 176
Morgan Stanley, 5.800%,
04/01/07 235 242
National Rural Utilities
Cooperative Finance Corp.,
3.000%, 02/15/06 425 423
-------
5,547
-------
ELECTRIC (1.3%)
American Electric Power Co.,
Inc., Ser A, 6.125%,
05/15/06 85 87
Dominion Resources, Inc., Ser
B, 7.625%, 07/15/05 175 177
PacifiCorp., 6.750%, 04/01/05 100 100
PG&E Corp., 3.260%,
04/03/06 (b) 63 63
-------
427
-------
FOREST PRODUCTS & PAPER (0.3%)
Weyerhaeuser Co., 6.125%,
03/15/07 95 98
-------
INSURANCE (0.4%)
Metlife, Inc., 3.911%,
05/15/05 115 115
-------
</Table>
<Table>
<Caption>
- -------------------------------------------------------
Shares
or
Principal
Amount Value
- -------------------------------------------------------
MEDIA (1.7%)
Comcast Cable Communications,
Inc., 8.375%, 05/01/07 $ 145 $ 156
Time Warner, Inc., 6.150%,
05/01/07 140 145
Viacom, Inc., 7.750%, 06/01/05 250 251
-------
552
-------
REITS (0.5%)
Equity Office Properties
Trust, 8.375%, 03/15/06 150 156
-------
TELECOMMUNICATIONS (4.1%)
British Telecom PLC, 7.875%,
12/15/05 325 335
Deutsche Telekom Finance,
8.250%, 06/15/05 300 303
SBC Communications, Inc.,
5.750%, 05/02/06 190 193
SBC Communications, Inc.,
4.125%, 09/15/09 90 88
Verizon Global Funding Corp.,
6.125%, 06/15/07 194 201
Verizon Wireless, Inc.,
5.375%, 12/15/06 225 229
-------
1,349
-------
Total Corporate Bonds
(Cost $10,785) 10,625
-------
FOREIGN GOVERNMENT BONDS (0.7%)
CANADA (0.7%)
Quebec Province, 5.500%,
04/11/06 225 229
-------
Total Foreign Government Bonds
(Cost $233) 229
-------
U.S. GOVERNMENT AGENCIES (36.9%)
FANNIE MAE (14.1%)
2.625%, 01/19/07 525 513
3.750%, 05/17/07, Callable
05/17/05 @ 100 450 447
6.942%, 08/01/07 (b) 147 154
3.000%, 08/15/07 835 815
4.200%, 03/24/08, Callable
03/24/06 @ 100 325 323
6.070%, 10/01/08 224 230
3.810%, 12/01/08 380 376
3.125%, 03/16/09, Callable
03/16/06 @ 100 175 167
6.850%, 08/01/09 304 326
</Table>
36
SCHEDULE OF PORTFOLIO INVESTMENTS
STI CLASSIC FUNDS March 31, 2005 (Amounts in thousands, except shares)
CLASSIC INSTITUTIONAL SHORT-TERM BOND FUND -- CONCLUDED
<Table>
<Caption>
- -------------------------------------------------------
Shares
or
Principal
Amount Value
- -------------------------------------------------------
FANNIE MAE--CONTINUED
4.000%, 11/25/16, Ser 2003-9,
Cl UA $ 49 $ 49
3.171%, 05/01/33 (b) 205 206
3.910%, 09/01/33 (b) 161 164
3.783%, 10/01/33 (b) 186 192
4.333%, 03/01/34 (b) 346 343
4.354%, 03/01/34 (b) 318 318
-------
4,623
-------
FEDERAL HOME LOAN BANK (8.4%)
3.250%, 08/15/05 675 676
4.875%, 11/15/06 1,960 1,989
2.625%, 05/15/07 100 97
-------
2,762
-------
FREDDIE MAC (13.4%)
2.700%, 04/05/05, Ser RB 500 500
2.500%, 11/25/05 210 208
2.375%, 12/15/05 500 496
3.050%, 01/19/07 400 394
2.375%, 02/15/07 345 335
2.400%, 03/29/07 425 412
4.000%, 07/01/08 172 171
5.750%, 03/15/09 200 210
5.000%, 05/15/11, Cl BA 34 34
3.750%, 12/15/11, Cl AB 321 316
5.000%, 12/15/20, Cl NA 486 491
4.500%, 10/15/28, Cl MH 325 322
3.344%, 07/01/33 162 163
5.007%, 04/01/34 325 331
-------
4,383
-------
SALLIE MAE (1.0%)
3.210%, 09/15/06 (b) 330 331
-------
Total U.S. Government Agencies
(Cost $12,250) 12,099
-------
</Table>
<Table>
<Caption>
- -------------------------------------------------------
Shares
or
Principal
Amount Value
- -------------------------------------------------------
U.S. TREASURY OBLIGATIONS (14.6%)
U.S. TREASURY NOTES (14.6%)
1.875%, 01/31/06 (e) $ 2,100 $ 2,074
2.750%, 07/31/06 (e) 875 865
2.250%, 02/15/07 (e) 500 486
2.750%, 08/15/07 (e) 1,175 1,146
2.625%, 05/15/08 (e) 60 58
3.500%, 08/15/09 (e) 175 171
-------
Total U.S. Treasury Obligations
(Cost $4,847) 4,800
-------
YANKEE DOLLAR (0.5%)
BEVERAGES (0.5%)
Diageo PLC, 3.375%, 03/20/08 170 165
-------
Total Yankee Dollar (Cost $169) 165
-------
SHORT TERM INVESTMENTS (14.8%)
CSFB Enhanced Liquidity
Portfolio (f) 4,864,450 4,864
-------
Total Short Term Investments
(Cost $4,864) 4,864
-------
MONEY MARKET FUNDS (1.8%)
Federated Prime Value Money
Market Fund 589,226 589
-------
Total Money Market Funds (Cost
$589) 589
-------
Total Investments (Cost $37,917)
(a) -- 114.3% 37,520
Liabilities in excess of other
assets -- (14.3)% (4,699)
-------
Net Assets -- 100.0% $32,821
=======
</Table>
See notes to schedules of portfolio investments and notes to financial
statements.
37
CLASSIC INSTITUTIONAL SUPER SHORT INCOME PLUS FUND
<Table>
<Caption>
- -------------------------------------------------------
Shares
or
Principal
Amount Value
- -------------------------------------------------------
ASSET BACKED SECURITIES (22.9%)
AUTO MANUFACTURERS (6.5%)
DaimlerChrysler Auto Trust,
Ser 2004, Cl A2, 1.410%,
11/08/06 $ 941 $ 937
DaimlerChrysler Master Owner
Trust, Ser 2003, Cl A,
2.860%, 02/15/08 (b) 2,575 2,576
Harley-Davidson Motorcycle
Trust, Ser 2004-1, Cl A1,
1.400%, 10/15/08 1,320 1,306
Navistar Financial Corp.
Owner Trust, Ser 2002-B, Cl
A3A, 3.060%, 03/15/07 (b) 485 485
Nissan Auto Receivables Owner
Trust, Ser 2002, Cl A4,
4.280%, 10/16/06 794 795
Nissan Master Owner Trust
Receivables, Ser 2003, Cl
A1, 2.870%, 09/15/08 (b) 3,000 3,002
Toyota Auto Receivables Owner
Trust, Ser 2003-B, Cl A3,
2.840%, 08/15/07 (b) 2,855 2,856
USAA Auto Owner Trust, Ser
2004-1, Cl A3, 2.060%,
04/15/08 2,150 2,115
--------
14,072
--------
AUTOMOBILE ABS (0.1%)
Capital Auto Receivables
Asset Trust, Ser 2003-1, Cl
A2A, 2.270%, 01/17/06 212 212
--------
CREDIT CARD ABS (4.7%)
Bank One Issuance Trust, Ser
2003, Cl A5, 2.860%,
02/17/09 (b) 2,500 2,501
Citibank Credit Card Issuance
Trust, 2.700%, 01/15/08 1,500 1,489
First USA Credit Master
Trust, Ser 2001-1, Cl A,
3.000%, 09/19/08 (b) 3,500 3,504
GE Capital Credit Card Master
Note Trust, Ser 2004-1, Cl
A, 2.860%, 06/15/10 (b) 2,500 2,501
--------
9,995
--------
</Table>
<Table>
<Caption>
- -------------------------------------------------------
Shares
or
Principal
Amount Value
- -------------------------------------------------------
DIVERSIFIED FINANCIAL SERVICES (5.8%)
College Loan Corp. Trust, Ser
2005-1, Cl A1, 2.745%,
01/25/14 (b) $ 2,250 $ 2,250
Collegiate Funding Services
Education Loan, Ser 2003-5,
Cl A6, 1.550%, 12/28/43 (b) 2,250 2,250
Education Loans, Inc., Ser
2003-1, Cl A, 1.250%,
12/01/35 (b) 2,250 2,250
Nelnet Student Loan Corp.,
Ser 2002-A, Cl A7, 2.650%,
06/01/35 (b) 2,250 2,250
SLM Student Loan Trust, Ser
1998-1, Cl A2, 3.599%,
10/25/11 (b) 3,239 3,273
--------
12,273
--------
HOME EQUITY ABS (0.1%)
Residential Asset Securities
Corp., Ser 2003-KS11, Cl
AI1, 3.020%, 09/25/21 (b) 111 111
--------
OTHER ABS (5.7%)
CIT Equipment Collateral, Ser
2003-VTI, Cl A3A, 2.980%,
04/20/07 (b) 1,287 1,288
Countrywide Home Equity Loan
Trust, Ser 2005-A, Cl 2A,
2.960%, 02/15/30 (b) 2,000 2,003
GMAC Mortgage Corp. Loan
Trust, Ser 2004-HE1, Cl A1,
2.930%, 06/25/34 (b) 2,275 2,276
GMAC Mortgage Corp. Loan
Trust, Ser 2004-HE3, Cl A1,
2.950%, 10/25/34 (b) 2,500 2,502
Residential Asset Mortgage
Products, Inc., Ser
2004-RS2, Cl AI1, 2.980%,
01/25/24 (b) 261 261
Residential Asset Mortgage
Products, Inc., Ser
2004-RS4, Cl AI2, 3.247%,
09/25/25 (b) 2,750 2,731
Residential Asset Mortgage
Products, Inc., Ser
2004-RS7, Cl AI1, 3.020%,
08/25/22 (b) 1,123 1,123
--------
12,184
--------
Total Asset Backed Securities
(Cost $48,937) 48,847
--------
</Table>
38
SCHEDULE OF PORTFOLIO INVESTMENTS
STI CLASSIC FUNDS March 31, 2005 (Amounts in thousands, except shares)
CLASSIC INSTITUTIONAL SUPER SHORT INCOME PLUS FUND -- CONTINUED
<Table>
<Caption>
- -------------------------------------------------------
Shares
or
Principal
Amount Value
- -------------------------------------------------------
COLLATERALIZED MORTGAGE OBLIGATIONS (4.2%)
Countrywide Home Loans, Inc.,
Ser 2004-21, Cl A10,
6.000%, 11/25/34 (b) $ 1,057 $ 1,077
J.P. Morgan Chase Mortgage
Securities Corp., 4.116%,
03/15/46 (b) 1,300 1,294
J.P. Morgan Mortgage Trust,
Ser 2005-A1, Cl 5A1,
4.484%, 02/25/35 (b) 3,406 3,367
Residential Accredit Loans,
Inc., Ser QS21, Cl A4,
5.750%, 11/25/33 1,828 1,825
Washington Mutual, Ser
2005-AR4, Cl A1, 3.624%,
04/25/35 (b) 1,375 1,373
--------
Collateralized Mortgage
Obligations
(Cost $8,969) 8,936
--------
COMMERCIAL PAPER (10.3%)
AUTO MANUFACTURERS (1.3%)
American Honda Finance Corp.,
2.715%, 05/10/05 2,750 2,742
--------
BANKS (2.6%)
ANZ (Delaware), Inc., 2.783%,
05/20/05 2,750 2,739
UBS Finance Delaware LLC,
2.628%, 04/08/05 2,750 2,749
--------
5,488
--------
DIVERSIFIED FINANCIAL SERVICES (6.4%)
Barclays US Funding LLC,
2.980%, 06/16/05 2,675 2,658
Ciesco LLC, 2.737%, 05/16/05 2,750 2,740
HBOS Treasury Service PLC,
2.968%, 06/09/05 2,000 1,989
Paccar Financial Corp.,
2.585%, 04/18/05 3,125 3,121
Rabobank USA, 2.642%,
04/25/05 3,175 3,169
--------
13,677
--------
Total Commercial Paper
(Cost $21,908) 21,907
--------
CORPORATE BONDS (30.8%)
AUTO MANUFACTURERS (2.4%)
American Honda Finance Corp.,
2.800%, 01/16/07 (b) (d) 2,500 2,503
</Table>
<Table>
<Caption>
- -------------------------------------------------------
Shares
or
Principal
Amount Value
- -------------------------------------------------------
AUTO MANUFACTURERS--CONTINUED
DaimlerChrysler NA Holdings
Corp., 7.750%, 06/15/05 $ 1,000 $ 1,008
DaimlerChrysler NA Holdings
Corp., 6.400%, 05/15/06 1,000 1,021
DaimlerChrysler NA Holdings
Corp., 4.750%, 01/15/08 525 523
--------
5,055
--------
BANKS (4.4%)
Bank of America Corp.,
5.250%, 02/01/07 800 815
U.S. Bank NA, 2.950%,
12/05/05 (b) 2,000 2,001
Wachovia Corp., 2.773%,
07/20/07 (b) 2,500 2,502
Wells Fargo & Co., 3.030%,
03/03/06 (b) 1,000 1,001
Wells Fargo & Co., 3.000%,
03/10/08 (b) 3,000 2,997
--------
9,316
--------
BEVERAGES (0.2%)
Coca-Cola Enterprises, Inc.,
5.250%, 05/15/07 450 459
--------
DIVERSIFIED FINANCIAL SERVICES (15.1%)
American Express Centurion
Bank, 2.900%, 11/16/07 (b) 2,150 2,151
Capital One Financial Corp.,
7.250%, 05/01/06 500 517
Capital One Financial Corp.,
8.750%, 02/01/07 500 538
CIT Group, Inc., 4.125%,
02/21/06 1,000 1,002
CIT Group, Inc., 3.040%,
05/18/07 (b) 2,500 2,504
Citigroup, Inc., 5.000%,
03/06/07 1,000 1,014
Countrywide Home Loan, Inc.,
5.500%, 08/01/06 1,000 1,017
Countrywide Home Loan, Inc.,
Ser M, 3.043%, 08/25/06 (b) 1,925 1,925
Credit Suisse First Boston
USA, Inc., 5.875%, 08/01/06 500 512
Education Funding Capital
Trust I, Ser A1-8, 2.730%,
06/01/42 (b) 2,250 2,250
Ford Motor Credit Co.,
6.875%, 02/01/06 600 608
</Table>
39
<Table>
<Caption>
- -------------------------------------------------------
Shares
or
Principal
Amount Value
- -------------------------------------------------------
DIVERSIFIED FINANCIAL SERVICES--CONTINUED
Ford Motor Credit Co.,
6.500%, 01/25/07 $ 600 $ 606
General Electric Capital
Corp., 5.000%, 06/15/07 750 761
Goldman Sachs Group, Inc.
(The), 4.125%, 01/15/08 550 545
Goldman Sachs Group, Inc.,
(The), Ser B, 3.190%,
03/30/07 (b) 2,500 2,502
Household Finance Corp.,
5.750%, 01/30/07 1,000 1,026
International Lease Finance
Corp., 3.750%, 08/01/07 550 543
John Deere Capital Corp., Ser
D, 3.875%, 03/07/07 545 542
JPMorgan Chase & Co., 3.170%,
12/18/06 (b) 3,000 3,005
JPMorgan Chase & Co., 5.250%,
05/30/07 1,000 1,020
KFW International Finance,
Inc., 4.750%, 01/24/07 575 584
MBNA America Bank National
Association, 7.750%,
09/15/05 835 850
Merrill Lynch & Co., Inc.,
Ser B, 3.375%, 09/14/07 480 471
Morgan Stanley, 2.760%,
01/12/07 (b) 2,500 2,505
Morgan Stanley, 5.800%,
04/01/07 1,000 1,028
SLM Corp., 2.900%,
01/25/06 (b) 2,000 2,003
--------
32,029
--------
ELECTRIC (1.0%)
American Electric Power Co.,
Inc., Ser A, 6.125%,
05/15/06 500 511
PG&E Corp., 3.260%, 04/03/06,
Callable 04/03/05 @ 100 (b) 387 388
Virginia Electric & Power
Co., 5.750%, 03/31/06 1,250 1,271
--------
2,170
--------
ELECTRIC SERVICES (0.5%)
Constellation Energy Group,
Inc., 7.875%, 04/01/05 1,125 1,125
--------
</Table>
<Table>
<Caption>
- -------------------------------------------------------
Shares
or
Principal
Amount Value
- -------------------------------------------------------
INSURANCE (2.7%)
ASIF Global Finance XXII,
3.040%, 05/30/06 (b) (d) $ 2,500 $ 2,504
MetLife Global Funding,
3.040%, 08/28/06 (b) (d) 3,250 3,255
--------
5,759
--------
MEDIA (1.9%)
Comcast Cable Communications,
Inc., 8.375%, 05/01/07 525 566
TCI Communications, Inc.,
6.875%, 02/15/06 500 515
Time Warner, Inc., 6.125%,
04/15/06 1,000 1,020
Time Warner, Inc., 6.150%,
05/01/07 500 516
Viacom, Inc., 7.750%,
06/01/05 1,525 1,535
--------
4,152
--------
TELECOMMUNICATIONS (2.6%)
British Telecom PLC, 7.875%,
12/15/05 1,000 1,028
Deutsche Telekom Finance,
8.250%, 06/15/05 1,500 1,515
SBC Communications, Inc.,
5.750%, 05/02/06 1,000 1,018
Verizon Global Funding Corp.,
6.750%, 12/01/05 1,250 1,275
Verizon Global Funding Corp.,
6.125%, 06/15/07 575 596
--------
5,432
--------
Total Corporate Bonds
(Cost $65,823) 65,497
--------
MASTER NOTES (1.4%)
BANKS (1.4%)
Bank of America Corp.,
2.945%, 09/14/05 (b) 3,000 3,000
--------
Total Master Notes
(Cost $3,000) 3,000
--------
TAXABLE MUNICIPAL BONDS (4.2%)
CALIFORNIA (1.1%)
Chela Financial USA, Inc.,
Student Loans, Ser 2002E-6,
RB, 2.880%, 12/01/37 (b) 2,250 2,250
--------
</Table>
40
SCHEDULE OF PORTFOLIO INVESTMENTS
STI CLASSIC FUNDS March 31, 2005 (Amounts in thousands, except shares)
CLASSIC INSTITUTIONAL SUPER SHORT INCOME PLUS FUND -- CONCLUDED
<Table>
<Caption>
- -------------------------------------------------------
Shares
or
Principal
Amount Value
- -------------------------------------------------------
COLORADO (1.1%)
Colorado Student Obligation
Bond Authority Student
Loan, Ser IV-A1, RB,
3.120%, 12/01/34 (b) $ 2,275 $ 2,275
--------
WASHINGTON (2.0%)
Student Loan Finance
Association, Washington
Educational Loan, Ser A-7,
RB, 2.950%, 06/01/38 (b) 2,250 2,250
Student Loan Finance
Association, Washington
Educational Loan, Ser A-8,
RB, 3.050%, 06/01/38 (b) 2,250 2,250
--------
4,500
--------
Total Taxable Municipal Bonds
(Cost $9,025) 9,025
--------
U.S. GOVERNMENT AGENCIES (23.3%)
FANNIE MAE (11.6%)
1.750%, 05/23/05 3,425 3,419
2.820%, 09/06/05 (b) 5,500 5,498
4.200%, 03/24/08, Callable
03/24/06 @ 100 525 522
6.000%, 07/25/08, Ser
1993-1997, Cl PH 195 195
4.500%, 04/01/10 1,021 1,017
4.000%, 11/25/16, Ser 2003-9,
Cl UA 267 267
5.108%, 05/01/32 (b) 637 648
3.489%, 04/01/33 (b) 977 980
3.171%, 05/01/33 (b) 1,637 1,649
3.815%, 06/01/33 (b) 1,792 1,762
3.679%, 08/01/33 (b) 870 856
3.910%, 09/01/33 (b) 1,631 1,665
3.783%, 10/01/33 (b) 1,915 1,980
3.362%, 01/01/34 (b) 1,233 1,227
4.333%, 03/01/34 (b) 1,730 1,714
4.354%, 03/01/34 (b) 1,204 1,205
--------
24,604
--------
FREDDIE MAC (10.4%)
2.550%, 10/07/05 (b) 3,000 3,000
2.725%, 11/07/05 (b) 5,500 5,500
4.000%, 11/15/06, Cl NA 207 207
4.500%, 03/01/08 912 916
4.000%, 05/01/08 1,478 1,467
4.000%, 06/01/08 1,261 1,252
</Table>
<Table>
<Caption>
- -------------------------------------------------------
Shares
or
Principal
Amount Value
- -------------------------------------------------------
FREDDIE MAC--CONTINUED
5.000%, 05/15/11, Cl BA $ 130 $ 130
4.000%, 11/15/11 1,138 1,137
3.750%, 12/15/11, Cl AB (b) 1,061 1,046
5.000%, 04/15/13, Cl MF 128 129
5.000%, 02/15/14, Cl AB 1,118 1,130
4.500%, 05/15/14, Cl NM 63 63
4.500%, 11/15/15, Cl EA (b) 1,036 1,034
5.500%, 12/15/15 143 145
5.000%, 04/15/16, Cl LB 86 86
3.500%, 05/15/19, Cl AU 625 620
5.000%, 12/15/20, Cl NA (b) 1,045 1,056
4.000%, 04/15/21, Cl PJ (b) 1,072 1,070
3.500%, 12/15/21, Cl HA 20 20
3.344%, 07/01/33 (b) 674 681
3.672%, 08/01/33 (b) 983 970
5.007%, 04/01/34 (b) 472 479
--------
22,138
--------
SALLIE MAE (0.9%)
3.210%, 09/15/06 (b) 2,000 2,005
--------
TENNESSEE VALLEY AUTHORITY STRIPS (0.4%)
Tennessee Valley Authority,
3.355%, 10/15/05 (b) 900 884
--------
Total U.S. Government Agencies
(Cost $49,906) 49,631
--------
U.S. TREASURY OBLIGATIONS (1.1%)
U.S. TREASURY NOTES (1.1%)
2.750%, 07/31/06 (e) 970 959
2.750%, 08/15/07 (e) 1,480 1,443
--------
Total U.S. Treasury Obligations
(Cost $2,406) 2,402
--------
SHORT TERM INVESTMENTS (0.9%)
CSFB Enhanced Liquidity
Portfolio (f) 1,916,000 1,916
--------
Total Short Term Investments
(Cost $1,916) 1,916
--------
REPURCHASE AGREEMENTS (1.7%)
Merrill Lynch & Co., Inc.,
2.820%, dated 03/31/05, to
be repurchased on 04/01/05,
repurchase price $1,377,895
(collateralized by U.S.
Government Agencies,
4.500%, due 02/01/35; total
market value $1,408,123) $ 1,378 1,378
</Table>
41
<Table>
<Caption>
- -------------------------------------------------------
Shares
or
Principal
Amount Value
- -------------------------------------------------------
REPURCHASE AGREEMENTS--CONTINUED
UBS Warburg LLC, 2.840%,
dated 03/31/05, to be
repurchased on 04/01/05,
repurchase price $2,141,123
(collateralized by U.S.
Government Agencies,
4.500%, due 06/15/30; total
market value $2,186,585) $ 2,141 $ 2,141
--------
Total Repurchase Agreements
(Cost $3,519) 3,519
--------
</Table>
<Table>
<Caption>
- -------------------------------------------------------
Shares
or
Principal
Amount Value
- -------------------------------------------------------
MONEY MARKET FUNDS (0.0)%
Dreyfus Government Cash
Management Money Market
Fund 100,000 $ 100
--------
Total Money Market Funds
(Cost $100) 100
--------
Total Investments
(Cost $215,509) (a) -- 100.8% 214,780
Liabilities in excess of other
assets -- (0.8)% (1,805)
--------
Net Assets -- 100.0% $212,975
========
</Table>
See notes to schedules of portfolio investments and notes to financial
statements.
42
SCHEDULE OF PORTFOLIO INVESTMENTS
STI CLASSIC FUNDS March 31, 2005 (Amounts in thousands, except shares)
CLASSIC INSTITUTIONAL TOTAL RETURN BOND FUND
<Table>
<Caption>
- ---------------------------------------------------------
Principal
Amount Value
- ---------------------------------------------------------
CORPORATE BONDS (17.9%)
AIRLINES (0.3%)
Southwest Airlines Co., 5.125%,
03/01/17 $ 180 $ 169
-------
AUTO MANUFACTURERS (0.7%)
DaimlerChrysler NA Holdings
Corp., 8.500%, 01/18/31 95 115
Ford Motor Co., 7.450%, 07/16/31 360 325
-------
440
-------
BANKS (0.4%)
Bank of America Corp., 7.400%,
01/15/11 220 248
-------
BUILDING MATERIALS (0.2%)
American Standard, Inc., 7.625%,
02/15/10 125 139
-------
CHEMICALS (0.9%)
Huntsman International LLC,
11.625%, 10/15/10, Callable
10/15/07 @ 105.81 162 190
MacDermid, Inc., 9.125%,
07/15/11, Callable 07/15/06 @
104.56 350 375
-------
565
-------
COMPUTERS (0.0%)
NCR Corp., 7.125%, 06/15/09 30 32
-------
DIVERSIFIED FINANCIAL SERVICES (2.8%)
Capital One Financial Corp.,
4.800%, 02/21/12 90 87
CIT Group, Inc., 5.125%, 09/30/14 155 153
Citigroup, Inc., 5.125%, 05/05/14 75 75
Citigroup, Inc., 5.875%, 02/22/33 105 106
Fund American Cos., Inc., 5.875%,
05/15/13 205 209
Goldman Sachs Group, Inc. (The),
3.875%, 01/15/09 40 39
Goldman Sachs Group, Inc. (The),
4.750%, 07/15/13 210 202
HSBC Holdings PLC, 7.625%,
05/17/32, (d) 90 112
John Deere Capital Corp., 3.900%,
01/15/08 45 44
JPMorgan Chase & Co., 6.625%,
03/15/12 255 280
MBNA Corp., 6.125%, 03/01/13 195 206
Merrill Lynch & Co., Inc.,
3.700%, 04/21/08 30 29
</Table>
<Table>
<Caption>
- ---------------------------------------------------------
Principal
Amount Value
- ---------------------------------------------------------
DIVERSIFIED FINANCIAL SERVICES--CONTINUED
Merrill Lynch & Co., Inc.,
5.000%, 01/15/15 $ 85 $ 82
Morgan Stanley, 5.300%, 03/01/13 140 141
-------
1,765
-------
ELECTRIC (1.7%)
Aquila, Inc., 14.875%, 07/01/12 250 343
Dominion Resources, Inc., Ser E,
6.750%, 12/15/32 45 49
Edison Mission Energy, 9.875%,
04/15/11 400 462
Entergy Gulf States, Inc.,
4.875%, 11/01/11, Callable
11/01/06 @ 100 40 39
Oncor Electric Delivery Co.,
7.000%, 05/01/32 45 52
Pacific Gas & Electric Co.,
6.050%, 03/01/34 165 169
-------
1,114
-------
ENTERTAINMENT (0.1%)
GTECH Holdings Corp., 4.750%,
10/15/10 45 44
-------
FOREST PRODUCTS & PAPER (1.2%)
Appleton Papers, Inc., Ser B,
9.750%, 06/15/14, Callable
06/15/09 @ 104.88 300 314
Georgia-Pacific Corp., 8.125%,
05/15/11 350 385
Weyerhaeuser Co., 7.375%,
03/15/32 75 88
-------
787
-------
HOME BUILDERS (0.2%)
Lennar Corp., 5.950%, 03/01/13 45 46
Pulte Homes, Inc., 4.875%,
07/15/09 75 74
-------
120
-------
INSURANCE (0.5%)
Fairfax Financial Holdings Ltd.,
8.300%, 04/15/26 200 182
MetLife, Inc., 5.250%, 12/01/06 50 51
Prudential Financial, Inc.,
3.750%, 05/01/08 45 44
Prudential Financial, Inc.,
5.100%, 09/20/14 70 69
-------
346
-------
</Table>
43
<Table>
<Caption>
- ---------------------------------------------------------
Principal
Amount Value
- ---------------------------------------------------------
INVESTMENT COMPANIES (0.1%)
Credit Suisse First Boston USA,
Inc., 6.500%, 01/15/12 $ 85 $ 92
-------
LEISURE TIME (0.1%)
Harley Davidson Funding Corp.,
3.625%, 12/15/08 (d) 55 54
-------
LODGING (0.8%)
Harrah's Operating Co., Inc.,
5.375%, 12/15/13 60 59
Mandalay Resort Group, Ser B,
10.250%, 08/01/07 375 408
Marriott International, Inc., Ser
C, 7.875%, 09/15/09 15 17
-------
484
-------
MEDIA (2.3%)
British Sky Broadcasting Group
PLC, 6.875%, 02/23/09 100 107
Comcast Cable Communications,
Inc., 7.125%, 06/15/13 175 195
Comcast Cable Communications,
Inc., 7.050%, 03/15/33 25 28
Cox Communications, Inc., 4.625%,
06/01/13 165 154
EchoStar DBS Corp., 5.750%,
10/01/08 250 247
Kabel Deutschland Gmbh, 10.625%,
07/01/14 (d) 375 415
News America Holdings, Inc.,
9.250%, 02/01/13 85 106
News America Holdings, Inc.,
6.200%, 12/15/34 (d) 50 49
Time Warner, Inc., 7.625%,
04/15/31 155 182
-------
1,483
-------
MINING (0.3%)
Codelco, Inc., 5.500%, 10/15/13
(d) 205 207
-------
MISCELLANEOUS MANUFACTURER (0.6%)
General Electric Co., 5.000%,
02/01/13 405 404
-------
OFFICE / BUSINESS EQUIPMENT (0.5%)
Xerox Corp., 9.750%, 01/15/09 300 338
-------
OIL & GAS (0.3%)
Devon Energy Corp., 10.250%,
11/01/05 10 10
Devon Financing Corp ULC, 7.875%,
09/30/31 50 62
</Table>
<Table>
<Caption>
- ---------------------------------------------------------
Principal
Amount Value
- ---------------------------------------------------------
OIL & GAS--CONTINUED
Enterprise Products Partners LP,
Ser B, 6.875%, 03/01/33 $ 85 $ 90
Motiva Enterprises LLC, 5.200%,
09/15/12 (d) 25 25
-------
187
-------
PACKAGING & CONTAINERS (0.6%)
Packaging Corp. of America,
5.750%, 08/01/13 40 40
Stone Container Corp., 9.250%,
02/01/08 325 346
-------
386
-------
PIPELINES (0.6%)
Centerpoint Energy Resources
Corp., Ser B, 7.875%, 04/01/13 165 191
K N Capital Trust III, 7.630%,
04/15/28 105 121
Kinder Morgan, Inc., 7.250%,
03/01/28 40 45
-------
357
-------
REITS (0.1%)
Simon Property Group LP, 6.375%,
11/15/07 35 36
-------
RETAIL (0.2%)
Federated Department Stores,
Inc., 6.900%, 04/01/29 40 43
Toys "R" Us, Inc., 7.625%,
08/01/11 100 94
-------
137
-------
SAVINGS & LOANS (0.1%)
Golden West Financial Corp.,
4.125%, 08/15/07 50 50
-------
TELECOMMUNICATIONS (2.3%)
Citizens Communications Co.,
9.000%, 08/15/31 250 260
Deutsche Telekom International
Finance, 9.250%, 06/01/32 100 144
Qwest Communications
International, Inc., 8.875%,
06/01/31, Callable 05/26/05 @
105.03 400 403
SBC Communications, Inc., 5.625%,
06/15/16 15 15
SBC Communications, Inc., 6.450%,
06/15/34 45 47
Sprint Capital Corp., 8.750%,
03/15/32 165 214
Telus Corp., 8.000%, 06/01/11 75 87
</Table>
44
SCHEDULE OF PORTFOLIO INVESTMENTS
STI CLASSIC FUNDS March 31, 2005 (Amounts in thousands, except shares)
CLASSIC INSTITUTIONAL TOTAL RETURN BOND FUND -- CONCLUDED
<Table>
<Caption>
- ---------------------------------------------------------
Principal
Amount Value
- ---------------------------------------------------------
TELECOMMUNICATIONS--CONTINUED
Verizon Global Funding Corp.,
7.750%, 12/01/30 $ 80 $ 97
Zeus Special Subsidiary Ltd.,
10.204%, 02/01/15, Callable
02/01/10 @ 104.63 (c) (d) (g) 350 221
-------
1,488
-------
Total Corporate Bonds (Cost
$11,441) 11,472
-------
FOREIGN GOVERNMENT BONDS (0.5%)
MEXICO (0.5%)
Mexican United States, 8.300%,
08/15/31 270 309
-------
Total Foreign Government Bonds
(Cost $296) 309
-------
U.S. GOVERNMENT AGENCIES (31.9%)
FANNIE MAE (19.5%)
5.500%, 07/01/16 196 200
5.000%, 11/01/18 399 400
5.500%, 11/01/18 412 421
4.500%, 12/01/18 290 284
5.500%, 12/01/18 153 157
5.000%, 01/01/19 909 909
6.000%, 01/01/19 190 197
5.500%, 07/01/19 115 118
5.500%, 07/01/19 257 263
5.000%, 10/01/19 890 890
5.500%, 12/01/19 148 151
4.500%, 04/15/20 (h) 265 259
5.000%, 04/15/20 (h) 930 928
6.500%, 05/01/31 222 231
7.000%, 12/01/31 137 144
7.000%, 03/01/32 2 3
7.000%, 05/01/32 102 107
6.500%, 07/01/32 586 609
5.500%, 04/01/33 203 204
5.500%, 04/01/33 216 216
5.000%, 06/01/33 395 387
5.500%, 06/01/33 732 734
7.000%, 10/01/33 440 463
5.500%, 11/01/33 423 425
6.000%, 11/01/33 284 291
5.500%, 01/01/34 768 770
6.500%, 01/01/34 458 476
5.500%, 02/01/34 752 754
6.500%, 02/01/34 190 197
6.500%, 03/01/34 302 313
5.500%, 04/01/34 (h) 360 360
</Table>
<Table>
<Caption>
- ---------------------------------------------------------
Principal
Amount Value
- ---------------------------------------------------------
FANNIE MAE--CONTINUED
6.000%, 05/01/34 $ 297 $ 304
6.500%, 07/01/34 282 293
-------
12,458
-------
FREDDIE MAC (11.2%)
4.500%, 01/01/19 537 527
7.000%, 09/01/29 87 92
5.500%, 02/01/33 308 309
6.000%, 04/01/33 225 230
6.000%, 04/01/33 229 235
6.000%, 11/01/33 999 1,022
6.000%, 12/01/33 133 137
6.000%, 01/01/34 314 322
6.500%, 05/01/34 205 213
5.000%, 07/01/34 139 136
6.000%, 10/01/34 376 385
5.000%, 11/01/34 360 353
5.000%, 12/01/34 1,071 1,048
6.000%, 04/13/35 (h) 250 256
5.500%, 04/15/35 (h) 667 669
5.000%, 04/15/35 (h) 1,286 1,257
-------
7,191
-------
GOVERNMENT NATIONAL MORTGAGE ASSOCIATION (1.2%)
6.500%, 07/15/32 267 278
5.000%, 09/15/33 106 105
6.000%, 07/15/34 185 191
5.000%, 11/15/34 197 195
-------
769
-------
Total U.S. Government Agencies
(Cost $20,632) 20,418
-------
U.S. TREASURY OBLIGATIONS (46.0%)
U.S. TREASURY BONDS (4.0%)
10.750%, 08/15/05 1,226 1,262
5.375%, 02/15/31 1,205 1,313
-------
2,575
-------
U.S. TREASURY INFLATION PROTECTED NOTES/BONDS (9.1%)
1.875%, 07/15/13 3,779 3,845
3.875%, 04/15/29 1,438 1,978
-------
5,823
-------
U.S. TREASURY NOTES (32.9%)
1.625%, 04/30/05 1,480 1,479
1.250%, 05/31/05 1,425 1,422
3.500%, 11/15/06 565 563
3.375%, 02/28/07 2,180 2,164
3.125%, 05/15/07 9,250 9,119
6.000%, 08/15/09 2,875 3,090
4.000%, 03/15/10 1,370 1,359
</Table>
45
<Table>
<Caption>
- ---------------------------------------------------------
Principal
Amount Value
- ---------------------------------------------------------
U.S. TREASURY NOTES--CONTINUED
4.875%, 02/15/12 $ 295 $ 305
3.875%, 02/15/13 1,070 1,033
4.250%, 11/15/14 374 366
4.000%, 02/15/15 190 183
-------
21,083
-------
Total U.S. Treasury Obligations
(Cost $29,497) 29,481
-------
</Table>
<Table>
<Caption>
- ---------------------------------------------------------
Principal
Amount Value
- ---------------------------------------------------------
REPURCHASE AGREEMENTS (9.4%)
Merrill Lynch & Co., Inc.,
2.820%, dated 03/31/05, to be
repurchased on 04/01/05,
repurchase price $6,056,060
(collateralized by U.S.
Government Agencies,
5.000%-5.500%, due 03/01/13-
01/01/17; total market value
$6,177,792) $6,056 $ 6,056
-------
Total Repurchase Agreements (Cost
$6,056) 6,056
-------
Total Investments (Cost $67,922)
(a) -- 105.7% 67,736
Liabilities in excess of other
assets -- (5.7)% (3,639)
-------
Net Assets -- 100.0% $64,097
=======
</Table>
See notes to schedules of portfolio investments and notes to financial
statements.
46
SCHEDULE OF PORTFOLIO INVESTMENTS
STI CLASSIC FUNDS March 31, 2005 (Amounts in thousands, except shares)
CLASSIC INSTITUTIONAL U.S. GOVERNMENT SECURITIES
SUPER SHORT INCOME PLUS FUND
<Table>
<Caption>
- -------------------------------------------------------
Shares
or
Principal
Amount Value
- -------------------------------------------------------
ASSET BACKED SECURITIES (7.7%)
DIVERSIFIED FINANCIAL SERVICES (7.7%)
College Loan Corp. Trust, Ser
2005-1, Cl A1, 2.730%,
01/25/14 (b) $ 750 $ 750
Collegiate Funding Services
Education Loan, Ser 2003-5,
Cl A6, 3.000%, 12/28/43 (b) 750 750
Education Loans, Inc., Ser
2003-1, Cl A, 3.030%,
12/01/35 (b) 750 750
KeyCorp Student Loan Trust, Ser
2004-A, Cl 1A1, 2.740%,
04/27/17 (b) 742 742
Nelnet Student Loan Corp., Ser
2002-A, Cl A7, 2.650%,
06/01/35 (b) 750 750
SLM Student Loan Trust, Ser
1998-1, Cl A2, 3.599%,
10/25/11 (b) 1,057 1,068
-------
Total Asset Backed Securities
(Cost $4,808) 4,810
-------
CORPORATE BONDS (1.2%)
DIVERSIFIED FINANCIAL SERVICES (1.2%)
Education Funding Capital Trust
I, Ser A1-8, 2.730%,
06/01/42 (b) 750 750
-------
Total Corporate Bonds (Cost $750) 750
-------
TAXABLE MUNICIPAL BONDS (4.7%)
CALIFORNIA (1.2%)
Chela Financial USA, Inc.,
Student Loans, Ser 2002E-6,
RB, 2.880%, 12/01/37 (b) 750 750
-------
COLORADO (1.2%)
Colorado Student Obligation
Bond Authority, Student Loan,
Ser IV-A1, RB, 3.120%,
12/01/34 (b) 725 725
-------
</Table>
<Table>
<Caption>
- -------------------------------------------------------
Shares
or
Principal
Amount Value
- -------------------------------------------------------
WASHINGTON (2.3%)
Student Loan Finance
Association, Washington
Education Loan, Ser A-7, RB,
2.950%, 06/01/38 (b) $ 750 $ 750
Student Loan Finance
Association, Washington
Education Loan, Ser A-8, RB,
3.050%, 06/01/38 (b) 750 750
-------
1,500
-------
Total Taxable Municipal Bonds
(Cost $2,975) 2,975
-------
U.S. GOVERNMENT AGENCIES (78.4%)
FANNIE MAE (37.1%)
2.674%, 04/13/05 (c) 1,250 1,249
1.750%, 05/23/05 1,000 998
2.820%, 09/06/05 (b) 2,500 2,499
2.989%, 10/07/05 (b) 3,000 3,002
2.840%, 12/09/05 (b) 2,500 2,499
6.942%, 08/01/07 (b) 318 333
3.000%, 08/15/07 350 341
6.000%, 07/25/08, Ser
1993-1997, Cl PH 107 107
4.500%, 04/01/10 1,021 1,017
4.000%, 11/25/16, Ser 2003-9,
Cl UA 312 311
3.000%, 06/25/19 1,040 1,020
5.108%, 05/01/32 (b) 725 737
3.250%, 11/25/32 447 443
3.489%, 04/01/33 (b) 977 980
3.171%, 05/01/33 (b) 832 838
3.815%, 06/01/33 (b) 1,792 1,762
3.679%, 08/01/33 (b) 939 924
3.910%, 09/01/33 (b) 709 724
3.783%, 10/01/33 (b) 821 848
3.362%, 01/01/34 (b) 555 552
4.333%, 03/01/34 (b) 957 947
4.354%, 03/01/34 (b) 1,067 1,069
-------
23,200
-------
FEDERAL FARM CREDIT BANK (11.9%)
2.760%, 04/29/05 (b) 2,000 2,000
2.125%, 08/15/05 1,490 1,485
2.620%, 12/01/06 (b) 2,500 2,499
2.635%, 04/04/07 (b) 1,500 1,502
-------
7,486
-------
FEDERAL HOME LOAN BANK (3.2%)
1.625%, 06/15/05 2,000 1,994
-------
</Table>
47
<Table>
<Caption>
- -------------------------------------------------------
Shares
or
Principal
Amount Value
- -------------------------------------------------------
FREDDIE MAC (25.5%)
2.685%, 05/10/05 (c) $ 1,325 $ 1,321
2.925%, 09/09/05 (b) 2,500 2,500
2.550%, 10/07/05 (b) 2,000 2,000
2.725%, 11/07/05 (b) 2,500 2,500
2.000%, 02/23/06 350 345
4.000%, 11/15/06, Cl NA 72 72
2.400%, 03/29/07 350 340
4.500%, 03/01/08 912 916
4.000%, 06/01/08 561 556
5.000%, 05/15/11, Cl BA 156 156
4.000%, 11/15/11 718 717
3.750%, 12/15/11, Cl AB 451 445
5.000%, 04/15/13, Cl MF 257 257
5.000%, 02/15/14, Cl AB 686 694
4.500%, 05/15/14, Cl NM 105 105
5.500%, 12/15/15 322 326
5.000%, 04/15/16, Cl LB 86 86
3.500%, 05/15/19, Cl AU 526 522
5.000%, 12/15/20, Cl NA 607 614
4.000%, 04/15/21, Cl PJ (b) 316 316
3.500%, 12/15/21, Cl HA 13 13
3.672%, 08/01/33 (b) 983 970
5.007%, 04/01/34 (b) 230 234
-------
16,005
-------
GOVERNMENT NATIONAL MORTGAGE ASSOCIATION (0.2%)
4.000%, 10/20/21 153 153
-------
TENNESSEE VALLEY AUTHORITY STRIPS (0.5%)
Tennessee Valley Authority,
3.355%, 10/15/05 (c) 300 295
-------
Total U.S. Government Agencies
(Cost $49,387) 49,133
-------
</Table>
<Table>
<Caption>
- -------------------------------------------------------
Shares
or
Principal
Amount Value
- -------------------------------------------------------
REPURCHASE AGREEMENTS (6.8%)
Merrill Lynch & Co., Inc.,
2.820%, dated 03/31/05, to be
repurchased on 04/01/05,
repurchase price $2,334,550
(collateralized by U.S.
Government Agencies, 5.500%,
due 03/01/25; total market
value $2,385,536) $ 2,334 $ 2,334
UBS Warburg LLC, 2.840%, dated
03/31/05, to be repurchased
on 04/01/05, repurchase price
$1,927,198 (collateralized by
U.S. Government Agencies, DN,
due 04/25/19; total market
value $1,970,268) 1,927 1,927
-------
Total Repurchase Agreements (Cost
$4,261) 4,261
-------
MONEY MARKET FUNDS (0.3%)
Dreyfus Government Cash
Management Money Market Fund 100,000 100
Federated Government
Obligations Fund 100,000 100
-------
Total Money Market Funds (Cost
$200) 200
-------
Total Investments (Cost $62,381)
(a) -- 99.1% 62,129
Other assets in excess of
liabilities -- 0.9% 563
-------
Net Assets -- 100.0% $62,692
=======
</Table>
See notes to schedules of portfolio investments and notes to financial
statements.
48
SCHEDULE OF PORTFOLIO INVESTMENTS
STI CLASSIC FUNDS March 31, 2005 (Amounts in thousands, except shares)
SEIX INSTITUTIONAL HIGH YIELD FUND
<Table>
<Caption>
- -------------------------------------------------------
Shares
or
Principal
Amount Value
- -------------------------------------------------------
CONVERTIBLE BONDS (0.3%)
CHEMICALS (0.3%)
Hercules, Inc. 6.500%,
06/30/29 $ 4,845 $ 3,876
----------
Total Convertible Bonds
(Cost $4,045) 3,876
----------
CORPORATE BONDS (96.6%)
ADVERTISING (1.1%)
Bear Creek Corp., 9.000%,
03/01/13, Callable
03/01/09 @ 104.50 (d) 1,515 1,500
R.H. Donnelley Corp.,
10.875%, 12/15/12,
Callable 12/15/07 @
105.44 (e) 8,586 9,896
R.H. Donnelley Corp.,
10.875%, 12/15/12,
Callable 12/15/07 @
105.44 (d) 3,537 4,076
----------
15,472
----------
AEROSPACE/DEFENSE (0.3%)
L-3 Communications Corp.,
7.625%, 06/15/12,
Callable 06/15/07 @
103.81 3,333 3,541
----------
AGRICULTURE (0.6%)
Gold Kist, Inc., 10.250%,
03/15/14, Callable
03/15/09 @ 105.12 2,325 2,651
Seminis, Inc., 10.250%,
10/01/13, Callable
10/01/08 @ 105.13 5,345 6,307
----------
8,958
----------
APPAREL (0.1%)
William Carter Co. (The),
Ser B, 10.875%,
08/15/11, Callable
08/15/06 @ 105.44 1,059 1,170
----------
BEVERAGES (0.4%)
Constellation Brands,
Inc., 8.625%, 08/01/06 4,340 4,535
Constellation Brands,
Inc., Ser B, 8.125%,
01/15/12, Callable
01/15/07 @ 104.06 1,501 1,606
----------
6,141
----------
</Table>
<Table>
<Caption>
- -------------------------------------------------------
Shares
or
Principal
Amount Value
- -------------------------------------------------------
BUILDING MATERIALS (0.7%)
Ainsworth Lumber Co. Ltd.,
6.840%, 10/01/10,
Callable 10/01/06 @ 102
(b) (d) $ 1,845 $ 1,873
Ainsworth Lumber Co. Ltd.,
7.250%, 10/01/12,
Callable 10/01/08 @
103.63 (d) 4,145 4,062
Ainsworth Lumber Co. Ltd.,
6.750%, 03/15/14,
Callable 03/15/09 @
103.38 1,455 1,382
U.S. Concrete, Inc.,
8.375%, 04/01/14,
Callable 04/01/09 @
104.88 2,815 2,801
----------
10,118
----------
CHEMICALS (4.2%)
Acetex Corp., 10.875%,
08/01/09, Callable
08/01/05 @ 105.44 2,001 2,131
ARCO Chemical Co.,
10.250%, 11/01/10 4,455 5,056
Equistar Chemicals LP,
10.125%, 09/01/08 1,435 1,586
Equistar Chemicals LP,
10.625%, 05/01/11,
Callable 05/01/07 @
105.31 1,000 1,123
Ethyl Corp., 8.875%,
05/01/10 2,435 2,605
FMC Corp., 10.250%,
11/01/09, Callable
11/01/06 @ 105.12 6,442 7,183
FMC Corp., Ser A, 7.000%,
05/15/08 1,057 1,112
Hercules, Inc., 6.500%,
06/30/29 290 232
Huntsman International
LLC, 9.875%, 03/01/09 975 1,053
Huntsman International
LLC, 11.625%, 10/15/10,
Callable 10/15/07 @
105.81 (e) 3,300 3,861
Lyondell Chemical Co., Ser
A, 9.625%, 05/01/07 5,670 6,081
MacDermid, Inc., 9.125%,
07/15/11, Callable
07/15/06 @ 104.56 3,820 4,097
</Table>
49
<Table>
<Caption>
- -------------------------------------------------------
Shares
or
Principal
Amount Value
- -------------------------------------------------------
CHEMICALS--CONTINUED
Millennium American Corp.,
Inc., 7.000%, 11/15/06 $ 5,160 $ 5,237
Nalco Co., 7.750%,
11/15/11, Callable
11/15/07 @ 103.88 6,935 7,213
PQ Corp., 7.500%,
02/15/13, Callable
02/15/09 @ 103.75 (d) 2,640 2,600
Rockwood Specialities
Group, Inc., 10.625%,
05/15/11, Callable
05/15/07 @ 105.31 3,605 4,002
Rockwood Specialties
Group, Inc., 7.500%,
11/15/14, Callable
11/15/09 @ 103.75 (d) 4,355 4,355
----------
59,527
----------
COAL (0.3%)
Luscar Coal Ltd., 9.750%,
10/15/11, Callable
10/15/06 @ 104.88 3,732 4,105
----------
COMMERCIAL SERVICES (2.2%)
Corrections Corp. of
America, 7.500%,
05/01/11, Callable
05/01/07 @ 103.75 7,735 7,832
Corrections Corp. of
America, 6.250%,
03/15/13, Callable
03/15/09 @ 103.13 (d) 2,890 2,774
Geo Group, Inc. (The),
8.250%, 07/15/13,
Callable 07/15/08 @
104.13 3,515 3,585
Service Corp.
International, 7.200%,
06/01/06 3,872 3,930
Service Corp.
International, 6.875%,
10/01/07 985 997
Service Corp.
International, 6.500%,
03/15/08 715 717
Service Corp.
International, 7.700%,
04/15/09 5,987 6,167
United Rentals North
America, Inc., 6.500%,
02/15/12, Callable
02/15/08 @ 103.25 5,090 4,950
----------
30,952
----------
</Table>
<Table>
<Caption>
- -------------------------------------------------------
Shares
or
Principal
Amount Value
- -------------------------------------------------------
COMPUTERS (0.6%)
Seagate Technology HDD
Holdings, 8.000%,
05/15/09, Callable
05/15/06 @ 104 $ 3,684 $ 3,914
Unisys Corp., 8.125%,
06/01/06 3,917 4,015
----------
7,929
----------
COSMETICS/PERSONAL CARE (0.3%)
Elizabeth Arden, Inc.,
7.750%, 01/15/14,
Callable 01/15/09 @
103.88 3,450 3,554
----------
DIVERSIFIED FINANCIAL SERVICES (1.7%)
AES Ironwood LLC, 8.857%,
11/30/25 952 1,095
AES Red Oak LLC, Ser A,
8.540%, 11/30/19 1,592 1,775
AES Red Oak LLC, Ser B,
9.200%, 11/30/29 2,200 2,486
BCP Crystal US Holdings
Corp., 9.625%, 06/15/14,
Callable 06/15/09 @
104.81 (d) 3,160 3,602
Borden U.S. Financial/Nova
Scotia, 9.000%,
07/15/14, Callable
07/15/09 @ 104.50 (d) 3,495 3,774
Consolidated
Communication, Inc.,
9.750%, 04/01/12,
Callable 04/01/08 @
104.88 (d) 2,025 2,147
Jostens, Inc., 7.625%,
10/01/12, Callable
10/01/08 @ 103.81 2,710 2,683
Rainbow National Services
LLC, 8.750%, 09/01/12,
Callable 09/01/08 @
104.38 (d) 2,545 2,736
Refco Finance Holdings
LLC, 9.000%, 08/01/12,
Callable 08/01/08 @
104.50 (d) 2,375 2,518
UGS Corp., 10.000%,
06/01/12, Callable
06/01/08 @ 105 (d) 1,383 1,528
----------
24,344
----------
</Table>
50
SCHEDULE OF PORTFOLIO INVESTMENTS
STI CLASSIC FUNDS March 31, 2005 (Amounts in thousands, except shares)
SEIX INSTITUTIONAL HIGH YIELD FUND -- CONTINUED
<Table>
<Caption>
- -------------------------------------------------------
Shares
or
Principal
Amount Value
- -------------------------------------------------------
ELECTRIC (12.1%)
AES Corp. (The), 9.375%,
09/15/10 (e) $ 2,825 $ 3,115
AES Corp. (The), 8.750%,
05/15/13, Callable
05/15/08 @ 104.38 (d) 13,397 14,603
Allegheny Energy Supply
Co. LLC, Ser A, 10.250%,
11/15/07 (d) 3,275 3,619
Allegheny Energy Supply
Co. LLC, 7.800%,
03/15/11 (e) 2,625 2,723
Allegheny Energy Supply
Co. LLC, 8.250%,
04/15/12 (d) 1,705 1,807
Aquila, Inc., 9.950%,
02/01/11 960 1,075
Aquila, Inc., 14.875%,
07/01/12 5,665 7,761
Edison Mission Energy,
10.000%, 08/15/08 490 545
Edison Mission Energy,
9.875%, 04/15/11 (e) 12,225 14,120
FirstEnergy Corp., Ser B,
6.450%, 11/15/11 5,860 6,183
FirstEnergy Corp., Ser C,
7.375%, 11/15/31 810 917
FPL Energy National Wind,
6.125%, 03/25/19 (d) 2,400 2,382
FPL Energy Wind Funding,
6.876%, 06/27/17 (d) 3,453 3,513
General Cable Corp.,
9.500%, 11/15/10,
Callable 11/15/07 @
104.75 4,408 4,849
Homer City Funding LLC,
8.137%, 10/01/19 2,671 2,931
Homer City Funding LLC,
8.734%, 10/01/26 3,621 4,191
Inergy LP, 6.875%,
12/15/14, Callable
12/15/09 @ 103.44 (d) 3,140 3,014
IPALCO Enterprises, Inc.,
8.375%, 11/14/08 5,000 5,450
Kansas Gas & Electric Co.,
8.290%, 03/29/16,
Callable 06/13/05 @
103.32 2,100 2,170
</Table>
<Table>
<Caption>
- -------------------------------------------------------
Shares
or
Principal
Amount Value
- -------------------------------------------------------
ELECTRIC--CONTINUED
Legrand Holding SA,
10.500%, 02/15/13,
Callable 02/15/08 @
105.25 $ 3,520 $ 3,978
Legrand Holding SA,
8.500%, 02/15/25 (d) 550 663
Midwest Generation LLC,
8.750%, 05/01/34,
Callable 05/01/09 @
104.38 686 765
Midwest Generation LLC,
Ser A, 8.300%, 07/02/09 3,350 3,593
Midwest Generation LLC,
Ser B, 8.560%, 01/02/16 10,900 12,181
MSW Energy Holdings LLC,
8.500%, 09/01/10,
Callable 09/01/07 @
104.25 4,450 4,673
MSW Energy Holdings LLC,
Ser B, 7.375%, 09/01/10,
Callable 09/01/07 @
103.69 6,341 6,436
NRG Energy, Inc., 8.000%,
12/15/13, Callable
12/15/08 @ 104 (d) 4,527 4,787
PSEG Energy Holdings LLC,
7.750%, 04/16/07 1,183 1,216
PSEG Energy Holdings LLC,
8.625%, 02/15/08 16,285 17,180
PSEG Energy Holdings LLC,
10.000%, 10/01/09 916 1,028
Reliant Energy, Inc.,
9.250%, 07/15/10,
Callable 07/15/07 @
104.62 2,200 2,354
Reliant Energy, Inc.,
6.750%, 12/15/14,
Callable 12/15/09 @
103.38 (e) 10,065 9,386
Sithe/Independence Funding
Corp., Ser A, 8.500%,
06/30/07 1,745 1,800
Sithe/Independence Funding
Corp., Ser A, 9.000%,
12/30/13 8,300 9,268
Texas Genco LLC, 6.875%,
12/15/14, Callable
12/15/09 @ 103.44 (d) 7,775 7,794
----------
172,070
----------
</Table>
51
<Table>
<Caption>
- -------------------------------------------------------
Shares
or
Principal
Amount Value
- -------------------------------------------------------
ELECTRONICS (1.2%)
Fisher Scientific
International, Inc.,
8.125%, 05/01/12,
Callable 05/01/07 @
104.06 $ 1,755 $ 1,904
Sanmina-SCI Corp., 3.000%,
03/15/07, Callable
06/13/05 @ 100.86 1,255 1,210
Sanmina-SCI Corp.,
10.375%, 01/15/10,
Callable 01/15/07 @
105.19 11,918 13,348
----------
16,462
----------
ENERGY -- ALTERNATIVE SERVICES (0.5%)
Salton Sea Funding Corp.,
Ser C, 7.840%, 05/30/10 4,864 5,194
Salton Sea Funding Corp.,
Ser F, 7.475%, 11/30/18 1,251 1,341
----------
6,535
----------
ENTERTAINMENT (1.9%)
Argosy Gaming Co., 9.000%,
09/01/11, Callable
09/01/06 @ 104.50 8,116 8,876
Capitol Records, Inc.,
8.375%, 08/15/09 (d) 5,658 6,082
Isle of Capri Casinos,
Inc., 9.000%, 03/15/12,
Callable 03/15/07 @
104.50 2,705 2,942
Penn National Gaming,
Inc., 8.875%, 03/15/10,
Callable 03/15/06 @
104.44 (e) 2,025 2,147
Penn National Gaming,
Inc., 6.750%, 03/01/15,
Callable 03/01/10 @
103.38 (d) 1,600 1,576
Warner Music Group Corp.,
7.375%, 04/15/14,
Callable 04/15/09 @
103.69 5,632 5,801
----------
27,424
----------
</Table>
<Table>
<Caption>
- -------------------------------------------------------
Shares
or
Principal
Amount Value
- -------------------------------------------------------
ENVIRONMENT CONTROL (0.5%)
Allied Waste North
America, Inc., 7.250%,
03/15/15, Callable
03/15/10 @ 103.63 (d) $ 3,830 $ 3,638
Allied Waste North
America, Inc., Ser B,
8.500%, 12/01/08 422 433
Allied Waste North
America, Inc., Ser B,
9.250%, 09/01/12,
Callable 09/01/07 @
104.63 490 524
Casella Waste Systems,
Inc., 9.750%, 02/01/13,
Callable 02/01/08 @
104.88 2,720 2,992
----------
7,587
----------
FOOD (2.7%)
Dean Foods Co., 8.150%,
08/01/07 13,332 14,066
Del Monte Corp., 8.625%,
12/15/12, Callable
12/15/07 @ 104.31 1,127 1,220
Pilgrim's Pride Corp.,
9.625%, 09/15/11,
Callable 09/15/06 @
104.81 1,790 1,942
PSF Group Holdings, Inc.,
9.250%, 06/15/11,
Callable 06/15/06 @
104.63 1,635 1,754
Smithfield Foods, Inc.,
Ser B, 8.000%,
10/15/09 (e) 3,997 4,237
Smithfield Foods, Inc.,
Ser B, 7.750%, 05/15/13 5,020 5,321
Stater Brothers Holdings,
Inc., 6.510%,
06/15/10 (b) 2,169 2,147
Swift & Co., 10.125%,
10/01/09, Callable
10/01/06 @ 105.06 2,620 2,875
</Table>
52
SCHEDULE OF PORTFOLIO INVESTMENTS
STI CLASSIC FUNDS March 31, 2005 (Amounts in thousands, except shares)
SEIX INSTITUTIONAL HIGH YIELD FUND -- CONTINUED
<Table>
<Caption>
- -------------------------------------------------------
Shares
or
Principal
Amount Value
- -------------------------------------------------------
FOOD--CONTINUED
Swift & Co., 12.500%,
01/01/10, Callable
10/01/06 @ 106.25 $ 960 $ 1,082
United Agri Products,
Inc., 9.000%, 12/15/11,
Callable 12/15/07 @
104.12 (b) 3,129 3,254
----------
37,898
----------
FOREST PRODUCTS & PAPER (4.1%)
Appleton Papers, Inc.,
8.125%, 06/15/11,
Callable 06/15/08 @
104.06 3,706 3,826
Appleton Papers, Inc., Ser
B, 9.750%, 06/15/14,
Callable 06/15/09 @
104.88 1,524 1,593
Boise Cascade LLC, 5.535%,
10/15/12, Callable
10/15/05 @ 102 (b) (d) 8,145 8,308
Boise Cascade LLC, 7.125%,
10/15/14, Callable
10/15/09 @ 103.56 (d) 2,615 2,648
Georgia-Pacific Corp.,
7.375%, 07/15/08 7,980 8,358
Georgia-Pacific Corp.,
8.875%, 02/01/10 4,257 4,752
Georgia-Pacific Corp.,
8.125%, 05/15/11 6,677 7,361
Georgia-Pacific Corp.,
9.500%, 12/01/11 2,175 2,567
Georgia-Pacific Corp.,
8.875%, 05/15/31 5,064 6,102
Millar Western Forest
Products Ltd., 7.750%,
11/15/13, Callable
11/15/08 @ 103.88 3,395 3,361
Neenah Paper, Inc.,
7.375%, 11/15/14,
Callable 11/15/09 @
103.69 (d) 4,025 3,864
Tembec Industries, Inc.,
8.500%, 02/01/11 4,155 3,937
Tembec Industries, Inc.,
7.750%, 03/15/12 1,745 1,588
----------
58,265
----------
</Table>
<Table>
<Caption>
- -------------------------------------------------------
Shares
or
Principal
Amount Value
- -------------------------------------------------------
HEALTHCARE -- PRODUCTS (0.9%)
Dade Behring, Inc.,
11.910%, 10/03/10,
Callable 10/03/05 @
105.95 $ 5,412 $ 5,899
Kinetic Concepts, Inc.,
7.375%, 05/15/13,
Callable 05/15/08 @
103.69 2,251 2,341
Sybron Dental Specialties,
Inc., 8.125%, 06/15/12,
Callable 06/15/07 @
104.06 2,592 2,780
Universal Hospital
Services, Inc., 10.125%,
11/01/11, Callable
11/01/07 @ 105.06 1,700 1,743
----------
12,763
----------
HEALTHCARE -- SERVICES (4.6%)
Coventry Health Care,
Inc., 5.875%,
01/15/12 (d) 1,430 1,430
Coventry Health Care,
Inc., 8.125%, 02/15/12,
Callable 02/15/07 @
104.06 5,478 5,944
Coventry Health Care,
Inc., 6.125%,
01/15/15 (d) 1,115 1,114
DaVita, Inc., 6.625%,
03/15/13, Callable
03/15/09 @ 103.31 (d) 3,725 3,688
DaVita, Inc., 7.250%,
03/15/15, Callable
03/15/10 @ 103.63 (d) 5,760 5,645
HCA, Inc., 8.750%,
09/01/10 6,613 7,438
HCA, Inc., 7.875%,
02/01/11 5,252 5,682
HCA, Inc., 6.300%,
10/01/12 150 150
HCA, Inc., 7.500%,
11/06/33 3,925 3,996
HCA, Inc., 7.500%,
11/15/95 6,406 6,146
PacifiCare Health Systems,
Inc., 10.750%, 06/01/09,
Callable 06/01/06 @
105.38 4,726 5,222
</Table>
53
<Table>
<Caption>
- -------------------------------------------------------
Shares
or
Principal
Amount Value
- -------------------------------------------------------
HEALTHCARE -- SERVICES--CONTINUED
Select Medical Corp.,
7.625%, 02/01/15,
Callable 02/01/10 @
103.81 (d) $ 5,000 $ 5,000
Tenet Healthcare Corp.,
9.875%, 07/01/14 (d) 6,110 6,354
Triad Hospitals, Inc.,
7.000%, 05/15/12,
Callable 05/15/08 @
103.50 6,235 6,297
----------
64,106
----------
HOLDING COMPANIES-DIVERSIFIED (0.3%)
Leucadia National Corp.,
7.000%, 08/15/13 3,550 3,541
Leucadia National Corp.,
8.650%, 01/15/27,
Callable 01/15/07 @
104.28 955 965
----------
4,506
----------
HOME BUILDERS (0.1%)
Meritage Homes Corp.,
6.250%, 03/15/15,
Callable 03/15/10 @
103.13 (d) 1,095 1,029
----------
INSURANCE (1.5%)
AFC Capital Trust I, Ser
B, 8.207%, 02/03/27 3,812 4,049
Allmerica Financial Corp.,
7.625%, 10/15/25 1,540 1,650
Crum & Forster Holdings
Corp., 10.375%,
06/15/13, Callable
06/15/08 @ 105.19 2,694 3,017
Fairfax Financial Holdings
Ltd., 7.750%, 04/26/12 2,125 2,051
Fairfax Financial Holdings
Ltd., 7.375%, 04/15/18 1,716 1,527
Fairfax Financial Holdings
Ltd., 8.300%, 04/15/26 760 692
Fairfax Financial Holdings
Ltd., 7.750%, 07/15/37 2,395 2,036
</Table>
<Table>
<Caption>
- -------------------------------------------------------
Shares
or
Principal
Amount Value
- -------------------------------------------------------
INSURANCE--CONTINUED
Markel Capital Trust I,
Ser B, 8.710%, 01/01/46,
Callable 01/01/07 @
104.36 $ 4,025 $ 4,296
Markel Corp., 7.350%,
08/15/34 1,710 1,867
----------
21,185
----------
LODGING (5.5%)
Caesars Entertainment,
Inc., 9.375%, 02/15/07 815 867
Caesars Entertainment,
Inc., 7.500%, 09/01/09 5,902 6,345
Chumash Casino & Resort
Enterprise, 9.000%,
07/15/10, Callable
07/15/06 @ 104.50 (d) 3,073 3,288
Gaylord Entertainment Co.,
8.000%, 11/15/13,
Callable 11/15/08 @ 104 1,530 1,584
Kerzner International
Ltd., 8.875%, 08/15/11,
Callable 08/15/06 @
104.44 1,591 1,706
Mandalay Resort Group,
9.500%, 08/01/08 393 429
Mandalay Resort Group, Ser
B, 10.250%, 08/01/07 20,956 22,790
MGM Mirage, 9.750%,
06/01/07 6,965 7,487
MGM Mirage, 8.500%,
09/15/10 18,114 19,835
Wynn Las Vegas LLC,
6.625%, 12/01/14,
Callable 12/01/09 @
103.31 (d) 13,360 12,692
----------
77,023
----------
MACHINERY DIVERSIFIED (0.2%)
NMGH Holding Co., 10.000%,
05/15/09, Callable
05/15/06 @ 105 2,685 2,893
----------
MEDIA (11.8%)
Cablevision Systems Corp.,
6.669%, 04/01/09 (b) (d) 3,830 4,060
Cablevision Systems Corp.,
8.000%, 04/15/12 (d) 3,430 3,524
CanWest Media, Inc.,
8.000%, 09/15/12,
Callable 09/15/11 @ 100 13,272 13,969
</Table>
54
SCHEDULE OF PORTFOLIO INVESTMENTS
STI CLASSIC FUNDS March 31, 2005 (Amounts in thousands, except shares)
SEIX INSTITUTIONAL HIGH YIELD FUND -- CONTINUED
<Table>
<Caption>
- -------------------------------------------------------
Shares
or
Principal
Amount Value
- -------------------------------------------------------
MEDIA--CONTINUED
CanWest Media, Inc., Ser
B, 7.625%, 04/15/13,
Callable 04/15/08 @
103.81 $ 3,577 $ 3,774
Charter Communications
Holdings LLC, 8.000%,
04/30/12 (d) 4,875 4,851
Corus Entertainment, Inc.,
8.750%, 03/01/12,
Callable 03/01/07 @
104.38 5,386 5,776
CSC Holdings, Inc.,
7.250%, 07/15/08 45 46
CSC Holdings, Inc.,
10.500%, 05/15/16,
Callable 05/15/06 @
105.25 1,215 1,337
CSC Holdings, Inc.,
7.875%, 02/15/18 645 684
CSC Holdings, Inc.,
7.625%, 07/15/18 1,825 1,898
Dex Media East Finance,
9.875%, 11/15/09,
Callable 11/15/06 @
104.94 9,283 10,211
Dex Media West Finance,
Ser B, 8.500%, 08/15/10,
Callable 08/15/07 @
104.25 2,540 2,711
Dex Media West Finance,
Ser B, 9.875%, 08/15/13,
Callable 08/15/08 @
104.94 (e) 10,447 11,648
Dex Media, Inc., 8.268%,
11/15/13, Callable
11/15/08 @ 104.50 (c)
(g) 2,875 2,185
Dex Media, Inc., 8.277%,
11/15/13, Callable
11/15/08 @ 104.50 (b)
(c) 1,150 874
Directv Holdings LLC,
8.375%, 03/15/13,
Callable 03/15/08 @
104.19 22,507 24,363
EchoStar DBS Corp.,
5.256%, 10/01/08,
Callable 10/01/05 @ 102
(b) 4,850 4,965
</Table>
<Table>
<Caption>
- -------------------------------------------------------
Shares
or
Principal
Amount Value
- -------------------------------------------------------
MEDIA--CONTINUED
EchoStar DBS Corp.,
5.750%, 10/01/08 $ 3,325 $ 3,275
EchoStar DBS Corp.,
9.125%, 01/15/09,
Callable 01/15/06 @
104.56 1,100 1,177
EchoStar DBS Corp.,
6.375%, 10/01/11 8,650 8,477
Gray Television, Inc.,
9.250%, 12/15/11,
Callable 12/15/06 @
104.62 3,460 3,737
Houghton Mifflin Co.,
8.250%, 02/01/11,
Callable 02/01/11 @
104.12 5,375 5,483
Kabel Deutschland Gmbh,
10.625%, 07/01/14,
Callable 07/01/09 @
105.31 11,475 12,680
Mediacom Broadband Corp.,
11.000%, 07/15/13 (e) 2,735 2,926
PRIMEDIA, Inc., 7.625%,
04/01/08, Callable
04/01/05 @ 101.271 1,645 1,653
PRIMEDIA, Inc., 8.875%,
05/15/11, Callable
05/15/06 @ 104.44 2,187 2,280
PRIMEDIA, Inc., 8.000%,
05/15/13, Callable
05/15/08 @ 104 5,170 5,273
Quebecor Media, Inc.,
11.125%, 07/15/11,
Callable 07/15/06 @
105.56 4,120 4,553
Radio One, Inc., Ser B,
8.875%, 07/01/11,
Callable 07/01/06 @
104.44 2,725 2,916
Readers-Digest
Association, Inc. (The),
6.500%, 03/01/11,
Callable 03/01/08 @
103.25 6,176 6,161
</Table>
55
<Table>
<Caption>
- -------------------------------------------------------
Shares
or
Principal
Amount Value
- -------------------------------------------------------
MEDIA--CONTINUED
R.H. Donnelley Finance
Corp., 8.875%, 12/15/10,
Callable 12/15/06 @
104.44 $ 1,350 $ 1,472
Sinclair Broadcast Group,
Inc., 8.750%, 12/15/11,
Callable 12/15/06 @
104.38 7,470 7,844
----------
166,783
----------
MINING (0.9%)
Novelis, Inc., 7.250%,
02/15/15, Callable
02/15/10 @ 103.63 (d) 12,780 12,524
----------
MISCELLANEOUS MANUFACTURER (0.2%)
Koppers, Inc., 9.875%,
10/15/13, Callable
10/15/08 @ 104.94 1,896 2,114
----------
OFFICE/BUSINESS EQUIPMENT (1.1%)
Xerox Corp., 9.750%,
01/15/09 12,044 13,579
Xerox Corp., 7.125%,
06/15/10 1,440 1,489
----------
15,068
----------
OIL & GAS (7.3%)
AmeriGas Partners LP, Ser
B, 8.875%, 05/20/11,
Callable 05/20/06 @
104.44 4,807 5,095
AmeriGas Partners LP, Ser
D, 10.000%, 04/15/06 1,050 1,103
Chesapeake Energy Corp.,
9.000%, 08/15/12,
Callable 08/15/07 @
104.50 8,903 9,827
Chesapeake Energy Corp.,
7.500%, 09/15/13,
Callable 09/15/08 @
103.75 12,532 13,221
Chesapeake Energy Corp.,
7.500%, 06/15/14,
Callable 06/15/09 @
103.75 (e) 3,599 3,806
Chesapeake Energy Corp.,
7.750%, 01/15/15,
Callable 01/15/08 @
103.88 3,840 4,061
</Table>
<Table>
<Caption>
- -------------------------------------------------------
Shares
or
Principal
Amount Value
- -------------------------------------------------------
OIL & GAS--CONTINUED
CITGO Petroleum Corp.,
7.875%, 05/15/06 $ 620 $ 642
Colorado Interstate Gas
Co., 5.950%,
03/15/15 (d) 985 949
Encore Acquisition Co.,
8.375%, 06/15/12,
Callable 06/15/07 @
104.19 1,847 1,995
EXCO Resources, Inc.,
7.250%, 01/15/11,
Callable 01/15/07 @
105.44 7,258 7,367
Ferrellgas Partners LP,
8.750%, 06/15/12,
Callable 06/15/07 @
104.38 6,104 6,348
Ferrellgas Partners LP,
6.750%, 05/01/14,
Callable 05/01/09 @
103.38 681 664
Forest Oil Corp., 8.000%,
06/15/08 9,054 9,620
Forest Oil Corp., 8.000%,
12/15/11 3,913 4,304
Premcor Refining Group,
Inc. (The), 9.250%,
02/01/10, Callable
02/01/07 @ 104.63 6,702 7,372
Premcor Refining Group,
Inc. (The), 6.750%,
02/01/11 3,077 3,146
Premcor Refining Group,
Inc. (The), 6.125%,
05/01/11 2,591 2,578
Premcor Refining Group,
Inc. (The), 7.750%,
02/01/12, Callable
02/01/08 @ 103.88 5,255 5,426
Premcor Refining Group,
Inc. (The), 6.750%,
05/01/14, Callable
05/01/09 @ 103.38 5,000 5,000
</Table>
56
SCHEDULE OF PORTFOLIO INVESTMENTS
STI CLASSIC FUNDS March 31, 2005 (Amounts in thousands, except shares)
SEIX INSTITUTIONAL HIGH YIELD FUND -- CONTINUED
<Table>
<Caption>
- -------------------------------------------------------
Shares
or
Principal
Amount Value
- -------------------------------------------------------
OIL & GAS--CONTINUED
Range Resources Corp.,
6.375%, 03/15/15,
Callable 03/15/10 @
103.19 (d) $ 1,115 $ 1,070
Western Oil Sands, Inc.,
8.375%, 05/01/12 7,799 8,879
----------
102,473
----------
OIL & GAS SERVICES (0.6%)
Hanover Compressor Co.,
8.625%, 12/15/10,
Callable 12/15/07 @
104.31 1,795 1,876
Hanover Compressor Co.,
9.000%, 06/01/14,
Callable 06/01/09 @
104.50 2,030 2,172
Hanover Equipment Trust
01, Ser B, 8.750%,
09/01/11, Callable
09/01/06 @ 104.38 (b) 3,296 3,477
Universal Compression
Holdings, Inc., 7.250%,
05/15/10, Callable
05/15/07 @ 103.62 435 445
----------
7,970
----------
PACKAGING & CONTAINERS (2.9%)
AEP Industries, Inc.,
7.875%, 03/15/13,
Callable 03/15/09 @
103.94 (d) 1,535 1,542
Berry Plastics Corp.,
10.750%, 07/15/12,
Callable 07/15/07 @
105.38 2,160 2,435
Crown Cork & Seal Co.,
Inc., 8.000%, 04/15/23,
Callable 06/15/05 @
103.05 780 753
Crown Cork & Seal Co.,
Inc., 7.375%, 12/15/26 365 341
Crown Euro Holdings SA,
9.500%, 03/01/11,
Callable 03/01/07 @
104.75 7,680 8,429
Crown Euro Holdings SA,
10.875%, 03/01/13,
Callable 03/01/08 @
105.44 6,011 6,973
</Table>
<Table>
<Caption>
- -------------------------------------------------------
Shares
or
Principal
Amount Value
- -------------------------------------------------------
PACKAGING & CONTAINERS--CONTINUED
Graphic Packaging
International Corp.,
9.500%, 08/15/13,
Callable 08/15/08 @
104.75 $ 3,975 $ 4,214
Owens-Brockway Glass
Container, Inc., 8.875%,
02/15/09, Callable
02/15/06 @ 104.44 3,910 4,174
Owens-Brockway Glass
Container, Inc., 8.750%,
11/15/12, Callable
11/15/07 @ 104.38 8,880 9,700
Plastipak Holdings, Inc.,
10.750%, 09/01/11,
Callable 09/01/06 @
105.38 1,450 1,610
----------
40,171
----------
PIPELINES (3.7%)
Dynegy Holdings, Inc.,
10.125%, 07/15/13,
Callable 07/15/08 @
105.06 (d) 6,994 7,623
El Paso Natural Gas Co.,
8.375%, 06/15/32 1,620 1,780
Southern Natural Gas Co.,
8.000%, 03/01/32 685 735
Tennessee Gas Pipeline
Co., 8.375%, 06/15/32 835 928
Transcontinental Gas Pipe
Line Corp., Ser B,
8.875%, 07/15/12 1,015 1,190
TransMontaigne, Inc.,
9.125%, 06/01/10,
Callable 06/01/07 @
104.56 1,463 1,551
Williams Cos., Inc. (The),
7.125%, 09/01/11 18,195 18,991
Williams Cos., Inc. (The),
8.125%, 03/15/12 (b) 6,735 7,375
Williams Cos., Inc. (The),
7.750%, 06/15/31 585 632
Williams Cos., Inc. (The),
8.750%, 03/15/32 9,659 11,470
----------
52,275
----------
</Table>
57
<Table>
<Caption>
- -------------------------------------------------------
Shares
or
Principal
Amount Value
- -------------------------------------------------------
REAL ESTATE (0.9%)
American Real Estate
Partners LP, 7.125%,
02/15/13, Callable
02/15/09 @ 103.56 (d) $ 6,615 $ 6,482
CB Richard Ellis Group,
Inc., 9.750%, 05/15/10,
Callable 05/15/07 @
104.88 2,466 2,787
CB Richard Ellis Group,
Inc., 11.250%, 06/15/11,
Callable 06/15/06 @
105.63 2,765 3,097
----------
12,366
----------
REITS (1.5%)
Host Marriott Corp.,
6.375%, 03/15/15,
Callable 03/15/10 @
103.19 (d) 2,710 2,588
Host Marriott Corp., Ser
G, 9.250%, 10/01/07 2,398 2,566
Host Marriott Corp., Ser
I, 9.500%, 01/15/07 7,545 7,959
Omega Healthcare
Investors, Inc., 7.000%,
04/01/14, Callable
04/01/09 @ 103.50 (d) 1,740 1,740
Rouse Co. (The), 8.000%,
04/30/09 3,725 4,063
Rouse Co. (The), 7.200%,
09/15/12 2,475 2,658
----------
21,574
----------
RETAIL (2.3%)
Carrols Holding Corp.,
9.000%, 01/15/13,
Callable 01/15/09 @
104.50 (d) 2,495 2,570
Couche-Tard, Inc., 7.500%,
12/15/13, Callable
12/15/08 @ 103.75 2,390 2,510
Pantry, Inc. (The),
7.750%, 02/15/14,
Callable 02/15/09 @
103.88 3,168 3,279
Rite Aid Corp., 8.125%,
05/01/10, Callable
05/01/07 @ 104.06 1,835 1,863
Rite Aid Corp., 9.500%,
02/15/11, Callable
02/15/07 @ 104.38 3,017 3,198
</Table>
<Table>
<Caption>
- -------------------------------------------------------
Shares
or
Principal
Amount Value
- -------------------------------------------------------
RETAIL--CONTINUED
Rite Aid Corp., 7.500%,
01/15/15, Callable
01/15/10 @ 103.75 $ 1,110 $ 1,066
Sonic Automotive, Inc.,
Ser B, 8.625%, 08/15/13,
Callable 08/15/08 @
104.31 824 820
Suburban Propane Partners
LP, 6.875%, 12/15/13,
Callable 12/15/08 @
103.44 (d) 5,495 5,412
Toys "R" Us, Inc., 7.625%,
08/01/11 (e) 5,124 4,816
Toys "R" Us, Inc., 7.875%,
04/15/13 (e) 2,840 2,535
United Auto Group, Inc.,
9.625%, 03/15/12,
Callable 03/15/07 @
104.81 3,433 3,621
----------
31,690
----------
SEMICONDUCTORS (0.5%)
Fairchild Semiconductor
Corp., 5.000%, 11/01/08,
Callable 06/06/05 @
102.25 3,161 3,192
Freescale Semiconductor,
5.410%, 07/15/09,
Callable 07/15/06 @ 102
(b) 2,998 3,077
MagnaChip Semiconductor
Ltd., 6.260%, 12/15/11,
Callable 12/15/05 @ 103
(b) (d) 780 800
----------
7,069
----------
TELECOMMUNICATIONS (13.7%)
AT&T Corp., 9.750%,
11/15/31 (b) 18,710 22,827
Cincinnati Bell, Inc.,
8.375%, 01/15/14,
Callable 01/15/09 @
104.19 (d) 870 857
Cincinnati Bell, Inc.,
7.000%, 02/15/15,
Callable 02/15/10 @
103.50 (d) 3,195 3,035
Citizens Communications
Co., 7.625%, 08/15/08 5,005 5,255
Citizens Communications
Co., 9.250%, 05/15/11 10,720 11,738
</Table>
58
SCHEDULE OF PORTFOLIO INVESTMENTS
STI CLASSIC FUNDS March 31, 2005 (Amounts in thousands, except shares)
SEIX INSTITUTIONAL HIGH YIELD FUND -- CONCLUDED
<Table>
<Caption>
- -------------------------------------------------------
Shares
or
Principal
Amount Value
- -------------------------------------------------------
TELECOMMUNICATIONS--CONTINUED
Citizens Communications
Co., 9.000%,
08/15/31 (e) $ 7,640 $ 7,946
Inmarsat Group Ltd.,
7.625%, 06/30/12,
Callable 03/01/08 @
103.81 6,663 6,630
Insight Midwest Holdings,
10.500%, 11/01/10,
Callable 11/01/05 @
105.25 2,055 2,199
Intelsat Ltd., 8.250%,
01/15/13, Callable
01/15/09 @ 104.13 (d) 15,265 15,418
Intelsat Ltd., 8.625%,
01/15/15, Callable
01/15/10 @ 104.31 (d) 1,275 1,301
Lucent Technologies, Inc.,
6.450%, 03/15/29 5,765 4,972
MCI, Inc., 6.908%,
05/01/07 5,005 5,093
MCI, Inc., 8.735%,
05/01/14 6,158 6,774
Nextel Communications,
Inc., 6.875%, 10/31/13,
Callable 10/31/08 @
103.44 10,505 10,951
Nextel Communications,
Inc., 5.950%, 03/15/14,
Callable 03/15/09 @
102.98 5,930 5,900
Nextel Communications,
Inc., 7.375%, 08/01/15,
Callable 08/01/08 @
103.69 10,421 11,007
NTL Cable PLC, 8.750%,
04/15/14, Callable
04/15/09 @ 104.38 (d) 6,584 7,094
PanAmSat Holding Corp.,
9.000%, 08/15/14,
Callable 08/15/09
@ 104.50 (e) 13,130 13,852
PanAmSat Holding Corp.,
6.375%, 01/15/08 85 86
Qwest Communications
International, Inc.,
6.294%, 02/15/09 (b) (d) 3,360 3,385
Qwest Communications
International, Inc.,
7.875%, 09/01/11 (d) 12,795 13,179
</Table>
<Table>
<Caption>
- -------------------------------------------------------
Shares
or
Principal
Amount Value
- -------------------------------------------------------
TELECOMMUNICATIONS--CONTINUED
Qwest Communications
International, Inc.,
9.125%, 03/15/12 (d) $ 865 $ 941
Qwest Communications
International, Inc.,
7.750%, 02/15/14 (b) (d) 2,870 2,805
Qwest Communications
International, Inc.,
7.500%, 06/15/23,
Callable 06/15/05 @
102.69 5,680 5,254
Qwest Communications
International, Inc.,
7.200%, 11/10/26,
Callable 11/10/05 @
103.04 661 598
Qwest Communications
International, Inc.,
8.875%, 06/01/31,
Callable 06/01/05 @
104.73 3,075 3,090
Qwest Communications
International, Inc.,
7.250%, 10/15/35,
Callable 10/15/15 @
101.94 3,680 3,303
Rogers Wireless, Inc.,
6.135%, 12/15/10,
Callable 12/15/06 @ 102
(b) 2,295 2,375
Rogers Wireless, Inc.,
9.625%, 05/01/11 418 474
Rogers Wireless, Inc.,
7.250%, 12/15/12 2,805 2,861
Rogers Wireless, Inc.,
6.375%, 03/01/14 2,540 2,464
Rogers Wireless, Inc.,
9.750%, 06/01/16 3,770 4,449
Valor Telecommunications
Enterprises LLC, 7.750%,
02/15/15, Callable
02/15/10 @ 103.88 (d) 3,080 3,065
Zeus Special Subsidiary
Ltd., 9.25%, 02/01/15,
Callable 02/01/10 @
104.63 (d) 4,020 2,543
----------
193,721
----------
</Table>
59
<Table>
<Caption>
- -------------------------------------------------------
Shares
or
Principal
Amount Value
- -------------------------------------------------------
TRANSPORTATION (0.6%)
CHC Helicopter Corp.,
7.375%, 05/01/14,
Callable 05/01/09 @
103.69 (d) $ 2,300 $ 2,240
CHC Helicopter Corp.,
7.375%, 05/01/14,
Callable 05/01/09 @
103.69 3,202 3,118
Petroleum Helicoptors,
Inc., Ser B, 9.375%,
05/01/09, Callable
05/01/06 @ 104.69 2,435 2,587
----------
7,945
----------
Total Corporate Bonds (Cost
$1,366,964) 1,359,300
----------
PREFERRED STOCKS (0.0%)
MEDIA (0.0%)
Shaw Communications, Inc.,
8.500% 23,210 583
----------
Total Preferred Stocks (Cost
$494) 583
----------
SHORT TERM INVESTMENTS (2.0%)
CSFB Enhanced Liquidity
Portfolio (f) 28,442,299 28,442
----------
Total Short Term Investments
(Cost $28,442) 28,442
----------
</Table>
<Table>
<Caption>
- -------------------------------------------------------
Shares
or
Principal
Amount Value
- -------------------------------------------------------
REPURCHASE AGREEMENTS (0.5%)
Lehman Brothers, Inc.,
2.840%, dated 03/31/05,
to be repurchased on
04/01/05, repurchase
price $7,714,715
(collateralized by U.S.
Government Agencies,
5.000%, due 02/01/34;
total market value
$7,869,964) $ 7,714 $ 7,714
----------
Total Repurchase Agreements
(Cost $7,714) 7,714
----------
Total Investments (Cost
$1,407,659) (a) -- 99.4% 1,399,915
Other assets in excess of
liabilities -- 0.6% 7,709
----------
Net Assets -- 100.0% $1,407,624
==========
</Table>
See notes to schedules of portfolio investments and notes to financial
statements.
60
SCHEDULE OF PORTFOLIO INVESTMENTS
STI CLASSIC FUNDS March 31, 2005 (Amounts in thousands, except shares)
CLASSIC INSTITUTIONAL CASH MANAGEMENT MONEY MARKET FUND
<Table>
<Caption>
- ---------------------------------------------------------
Principal
Amount Value
- ---------------------------------------------------------
CERTIFICATES OF DEPOSIT (5.4%)
BANKS (5.4%)
Credit Suisse First Boston
(USA), 2.730%, 01/09/06 (b) $50,000 $ 50,000
PNC Bank NA, 2.865%,
06/17/05 (c) 56,000 55,994
Regions Bank, 3.015%,
08/23/05 (b) 35,000 35,000
----------
Total Certificates of Deposit
(Cost $140,994) 140,994
----------
COMMERCIAL PAPERS (18.5%)
BANKS (1.2%)
Societe Generale NA, 2.719%,
05/12/05 (c) 30,000 29,908
----------
DIVERSIFIED FINANCIAL SERVICES (15.8%)
Atlantis One Funding Corp.,
2.637%, 04/20/05 (c) (d) 24,000 23,967
Atlantis One Funding Corp.,
2.698%, 05/09/05 (c) (d) 35,000 34,901
Atlantis One Funding Corp.,
2.818%, 05/18/05 (c) (d) 30,000 29,890
Barclays US Funding LLC,
2.718%, 05/10/05 (c) 40,000 39,883
CIT Group, Inc., 2.652%,
04/18/05 (c) 30,000 29,963
Dorada Corp., 2.708%, 05/06/05
(c) (d) 27,500 27,428
Greenwich Capital Holdings,
Inc., 2.650%, 09/01/05 (b) 50,000 50,000
HBOS Treasury Services PLC,
2.703%, 05/09/05 (c) 50,000 49,858
HBOS Treasury Services PLC,
2.739%, 05/16/05 (c) 35,000 34,881
ING Funding, 2.051%,
05/27/05 (c) 30,000 29,906
Liquid Funding Ltd., 2.595%,
04/04/05 (c) (d) 35,000 34,992
Liquid Funding Ltd., 2.780%,
06/03/05 (c) (d) 25,000 24,999
----------
410,668
----------
INSURANCE (1.5%)
Prudential PLC, 2.928%,
06/01/05 (c) (d) 39,000 38,808
----------
Total Commercial Papers (Cost
$479,384) 479,384
----------
</Table>
<Table>
<Caption>
- ---------------------------------------------------------
Principal
Amount Value
- ---------------------------------------------------------
CORPORATE BONDS (21.2%)
AUTO MANUFACTURERS (1.9%)
Toyota Motor Credit Corp, Ser
B, 2.785%, 01/25/06 (b) $50,000 $ 49,998
----------
BANKS (5.8%)
American Express Centurion
Bank, 2.810%, 09/20/05 (b) 30,000 30,000
BB&T Corp., 6.375%,
06/30/05 (b) 11,500 11,596
PNC Bank NA, Ser BKNT, 2.790%,
03/21/06 (b) 50,000 49,983
SouthTrust Bank NA, Ser BKNT,
2.950%, 12/14/05 (b) 25,000 24,997
Wells Fargo Bank NA, Ser BKNT,
2.686%, 02/06/06 (b) 35,000 35,000
----------
151,576
----------
DIVERSIFIED FINANCIAL SERVICES (12.8%)
American Express Credit Corp.,
Ser B, 2.890%, 01/23/06 (b) 50,000 50,032
Beta Finance, Inc., 1.535%,
04/29/05 (d) 25,000 24,998
Beta Finance, Inc., 2.500%,
11/10/05 (d) 25,000 25,000
Beta Finance, Inc., 2.892%,
03/07/06 (b) (d) 35,000 34,998
Brosis Finance LLC, Ser 1999,
2.890%, 09/01/19 (b) 11,000 11,000
General Electric Capital
Corp., Ser A, 2.950%,
02/03/06 (b) 35,000 35,070
Liberty Light US Capital,
2.790%, 01/17/06 (b) (d) 50,000 49,990
Morgan Stanley, Ser 1, 2.930%,
08/15/05 (b) 25,000 25,016
Sigma Finance Inc., 2.784%,
01/18/06 (b) (d) 50,000 49,992
Sigma Finance, Inc., 2.355%,
09/13/05 (d) 25,000 25,000
----------
331,096
----------
INVESTMENT COMPANIES (0.7%)
Dorada Finance Inc., 2.788%,
09/15/05 (b) (d) 18,000 18,000
----------
Total Corporate Bonds (Cost
$550,670) 550,670
----------
</Table>
61
<Table>
<Caption>
- ---------------------------------------------------------
Principal
Amount Value
- ---------------------------------------------------------
DEMAND NOTES (10.7%)
DIVERSIFIED FINANCIAL SERVICES (9.7%)
Barrington Development Corp.,
2.850%, 12/01/32 (b) $21,135 $ 21,135
Carmichael Properties LLC,
2.920%, 10/01/20 (b) 2,930 2,930
Gasmor Corp., 2.820%,
02/01/31 (b) 3,630 3,630
General Electric Capital
Corp., 3.075%, 05/12/05 (b) 50,000 50,008
Liberty Light US Capital,
2.800%, 05/10/05 (b) (d) 50,000 49,999
Liquid Funding Ltd., 2.850%,
06/28/05 (b) 35,000 35,000
LP Pinewood SPV LLC, 2.830%,
02/01/18 (b) 14,900 14,900
Morgan Stanley, 2.920%,
04/19/05 (b) 50,000 50,000
Morgan Stanley, 2.750%,
11/04/05 (b) 25,000 25,000
----------
252,602
----------
INVESTMENT COMPANIES (1.0%)
Dorada Finance, Inc., 2.200%,
09/07/05 (b) (d) 25,000 25,000
----------
Total Demand Notes (Cost
$277,602) 277,602
----------
MASTER NOTES (4.7%)
BANKS (4.7%)
Bank of America Corp., 2.945%,
09/14/05 (b) 122,400 122,400
----------
Total Master Notes (Cost
$122,400) 122,400
----------
MUNICIPAL BONDS (22.4%)
ALABAMA (0.4%)
Alabaster, Ser A, GO, 2.850%,
04/01/14, AMBAC (b) 9,355 9,355
----------
ALASKA (4.5%)
Alaska State Housing Finance
Corp., Ser D, RB, 2.810%,
12/01/32 (b) 25,000 25,000
Alaska State Housing Finance
Corp., Ser C, RB, 2.860%,
12/01/32 (b) 91,390 91,390
----------
116,390
----------
</Table>
<Table>
<Caption>
- ---------------------------------------------------------
Principal
Amount Value
- ---------------------------------------------------------
CALIFORNIA (2.2%)
California Housing Finance
Agency, Ser C, RB, 2.850%,
02/01/41, LOC: Landesbank
Hessen-Thueringen (b) $ 6,000 $ 6,000
Oakland-Alameda County
Coliseum Authority, Ser D,
RB, 2.850%, 02/01/11 (b) 29,400 29,400
Santa Rosa Rancheria, RB,
2.840%, 09/01/19, LOC: Bank
One N.A. (b) 22,000 22,000
----------
57,400
----------
COLORADO (5.0%)
Colorado Housing & Finance
Authority, RB, 2.850%,
11/01/32, LOC: JP Morgan
Chase Bank (b) 34,400 34,401
Colorado Housing & Finance
Authority, RB, 2.850%,
11/01/33, LOC: JPMorgan
Chase Bank (b) 20,200 20,200
Colorado Housing & Finance
Authority, RB, 2.850%,
10/01/34, FHLB (b) 20,000 20,000
Colorado Housing & Finance
Authority, RB, 2.850%,
11/01/34, LOC: Dexia Credit
(b) 25,000 25,000
Colorado Housing & Finance
Authority, RB, 2.850%,
11/01/35, LOC: Lloyds TSB
Bank PLC (b) 9,685 9,685
Colorado Housing & Finance
Authority, RB, 2.850%,
05/01/41, LOC: Landesbank
Hessen-Thueringen (b) 21,200 21,200
----------
130,486
----------
FLORIDA (0.3%)
Florida Housing Finance Corp.,
RB, 2.880%, 01/15/35,
FNMA (b) 2,500 2,500
Florida Housing Finance Corp.,
RB, 2.880%, 06/15/36, LOC:
Bank of America N.A. (b) 2,900 2,900
Orange County Housing Finance
Authority, Multifamily, Ser
D, RB, 2.880%, 07/15/34 (b) 2,100 2,100
----------
7,500
----------
</Table>
62
SCHEDULE OF PORTFOLIO INVESTMENTS
STI CLASSIC FUNDS March 31, 2005 (Amounts in thousands, except shares)
CLASSIC INSTITUTIONAL CASH MANAGEMENT MONEY MARKET FUND -- CONCLUDED
<Table>
<Caption>
- ---------------------------------------------------------
Principal
Amount Value
- ---------------------------------------------------------
ILLINOIS (1.7%)
Champaign, Ser B, GO, 2.870%,
01/01/24, LOC: Bank One N.A.
(b) $ 4,900 $ 4,900
Illinois Student Assistance
Community Student Loan, Ser
D, RB, 2.860%, 09/01/23,
LOC: Bank of America N.A.
(b) 40,000 40,000
----------
44,900
----------
MICHIGAN (1.8%)
Michigan State Housing
Development Authority Rental
Housing, Ser C, RB, 2.860%,
10/01/20 (b) 46,795 46,795
----------
MISSISSIPPI (2.0%)
Mississippi Development Bank
Special Obligation, Mceda
Beard Project, RB, 2.930%,
12/01/23, AMBAC (b) 4,010 4,010
Mississippi State, Nissan
Project, Ser A, GO, 2.850%,
11/01/28, LOC: Bank of
America N.A. (b) 48,800 48,800
----------
52,810
----------
NEW JERSEY (1.7%)
New Jersey Economic
Development Authority, The
Morey Organization Project,
RB, 2.910%, 10/01/15, LOC:
First Union National Bank
(b) 3,030 3,030
New Jersey Economic
Development Authority, State
Pension Funding, RB, 2.850%,
02/15/29, FSA (b) 40,000 40,000
----------
43,030
----------
NEW YORK (1.5%)
New York City Housing
Development Corp., Chelsea
Center, 2.850%, 06/01/33,
LOC: Bayerische Landesbank
(b) 27,900 27,900
New York State Housing Finance
Agency Service Contract, RB,
2.850%, 09/15/08, LOC: Dexia
Credit Local (b) 9,800 9,800
----------
37,700
----------
</Table>
<Table>
<Caption>
- ---------------------------------------------------------
Principal
Amount Value
- ---------------------------------------------------------
TEXAS (0.3%)
Texas State, Veterans Housing
Fund, Ser II-D, GO, 2.850%,
06/01/20, LOC: Dexia Credit
Local (b) $ 7,000 $ 7,000
----------
VIRGINIA (1.0%)
Newport News Economic
Development Authority, Ship
Building Project, Ser A, RB,
2.830%, 07/01/31, LOC: First
Union National Bank (b) 22,205 22,205
Newport News Economic
Development Authority, Ship
Building Project, Ser B, RB,
2.880%, 07/01/31, LOC: First
Union National Bank (b) 4,440 4,440
----------
26,645
----------
Total Municipal Bonds (Cost
$580,011) 580,011
----------
U.S. GOVERNMENT AGENCIES (9.8%)
FANNIE MAE (4.0%)
2.178%, 07/22/05 (c) 20,000 19,868
2.228%, 09/16/05 (c) 15,000 14,847
2.456%, 10/14/05 (c) 20,000 19,739
2.736%, 12/29/05 (b) 24,500 24,492
2.632%, 01/09/06 (b) 25,000 24,989
----------
103,935
----------
FEDERAL AGRICULTURAL MORTGAGE CORPORATION (0.8%)
3.030%, 06/30/05 (b) 20,000 20,000
----------
FEDERAL HOME LOAN BANK (1.0%)
1.200%, 04/01/05 (c) 25,000 25,000
----------
FREDDIE MAC (4.0%)
2.046%, 06/28/05 (c) 50,000 49,755
2.255%, 09/20/05 (c) 15,000 14,842
2.855%, 11/15/05 (c) 40,000 39,296
----------
103,893
----------
Total U.S. Government Agencies
(Cost $252,828) 252,828
----------
REPURCHASE AGREEMENTS (7.2%)
ABN AMRO Bank N.V., 2.770%,
dated 03/31/05, to be
repurchased on 04/01/05,
repurchase price $28,397,852
(collateralized by U.S.
Government Agencies, DN, due
04/06/05; total market value
$28,964,511) 28,396 28,396
</Table>
63
<Table>
<Caption>
- ---------------------------------------------------------
Principal
Amount Value
- ---------------------------------------------------------
REPURCHASE AGREEMENTS--CONTINUED
Bear Stearns & Co., Inc.,
2.830%, dated 03/31/05, to
be repurchased on 04/01/05,
repurchase price $15,140,549
(collateralized by U.S.
Government Agencies, DN, due
04/01/35; total market value
$15,443,282) $15,139 $ 15,139
BNP Paribas, 2.820%, dated
03/31/05, to be repurchased
on 04/01/05, repurchase
price $30,364,165
(collateralized by U.S.
Government Agencies, 3.875%,
due 02/15/10; total market
value $30,969,631) 30,362 30,362
Lehman Brothers, Inc., 2.840%,
dated 03/31/05, to be
repurchased on 04/01/05,
repurchase price $36,606,144
(collateralized by U.S.
Government Agencies, 5.000%,
due 02/01/34; total market
value $37,337,660) 36,603 36,603
Merrill Lynch & Co., Inc.,
2.820%, dated 03/31/05, to
be repurchased on 04/01/05,
repurchase price $20,868,008
(collateralized by U.S.
Government Agencies, 5.000%,
due 07/01/14-09/01/18; total
market value $21,284,896) 20,866 20,866
</Table>
<Table>
<Caption>
- ---------------------------------------------------------
Principal
Amount Value
- ---------------------------------------------------------
REPURCHASE AGREEMENTS--CONTINUED
UBS Warburg LLC, 2.840%, dated
03/31/05, to be repurchased
on 04/01/05, repurchase
price $56,170,914
(collateralized by U.S.
Government Agencies,
DN-4.500%, due 04/25/19-
06/15/30; total market value
$57,291,428) $56,167 $ 56,167
----------
Total Repurchase Agreements
(Cost $187,533) 187,533
----------
Total Investments (Cost
$2,591,422) (a) -- 100.0% 2,591,422
Other assets in excess of
liabilities -- 0.0% 105
----------
Net Assets -- 100.0% $2,591,527
==========
</Table>
See notes to schedules of portfolio investments and notes to financial
statements.
64
SCHEDULE OF PORTFOLIO INVESTMENTS
STI CLASSIC FUNDS March 31, 2005 (Amounts in thousands, except shares)
CLASSIC INSTITUTIONAL U.S. GOVERNMENT SECURITIES MONEY MARKET FUND
<Table>
<Caption>
- --------------------------------------------------------
Principal
Amount Value
- --------------------------------------------------------
U.S. GOVERNMENT AGENCIES (82.0%)
FANNIE MAE (55.7%)
1.400%, 04/01/05 $10,000 $ 10,000
2.580%, 04/06/05 (c) 25,000 24,991
2.758%, 05/03/05 (b) 25,000 25,000
2.658%, 05/11/05 (c) 50,000 49,849
2.759%, 05/17/05 (c) 20,000 19,932
2.747%, 05/18/05 (c) 25,000 24,911
2.958%, 06/15/05 (c) 20,000 19,878
2.930%, 06/17/05 (c) 15,000 14,909
2.067%, 06/24/05 (c) 10,000 9,953
2.184%, 07/22/05 (c) 15,000 14,901
2.733%, 08/29/05 (b) 45,000 44,991
2.820%, 09/06/05 (b) 50,000 49,983
2.690%, 09/15/05 (b) 50,000 49,987
2.228%, 09/16/05 (c) 10,000 9,898
2.456%, 10/14/05 (c) 10,000 9,869
2.984%, 11/10/05 (c) 10,000 9,823
2.736%, 12/29/05 (b) 55,000 54,982
2.632%, 01/09/06 (b) 55,000 54,977
--------
498,834
--------
FEDERAL AGRICULTURAL MORTGAGE CORPORATION (3.4%)
3.030%, 06/30/05 (b) 30,000 30,000
--------
FEDERAL FARM CREDIT BANK (3.4%)
2.720%, 05/16/05 (b) 25,000 25,000
2.700%, 07/15/05 (b) 5,000 4,999
--------
29,999
--------
FEDERAL HOME LOAN BANK (14.5%)
1.200%, 04/01/05 10,000 10,000
1.400%, 04/01/05 10,000 10,000
2.814%, 05/18/05 (c) 25,000 24,909
2.834%, 09/08/05 (b) 30,000 29,990
2.125%, 09/15/05 10,000 9,996
2.720%, 09/16/05 (b) 25,000 24,996
2.641%, 10/05/05 (b) 20,000 19,996
--------
129,887
--------
FREDDIE MAC (5.0%)
2.020%, 06/27/05 (c) 15,000 14,928
2.255%, 09/20/05 (c) 10,000 9,895
2.802%, 11/15/05 (c) 20,000 19,654
--------
44,477
--------
Total U.S. Government Agencies
(Cost $733,197) 733,197
--------
</Table>
<Table>
<Caption>
- --------------------------------------------------------
Principal
Amount Value
- --------------------------------------------------------
REPURCHASE AGREEMENTS (18.2%)
Lehman Brothers, Inc., 2.840%,
dated 03/31/05, to be
repurchased on 04/01/05,
repurchase price $75,428,097
(collateralized by U.S.
Government Agencies, 5.000%,
due 02/01/34; total market
value $76,934,213) $75,422 $ 75,422
Merrill Lynch & Co., Inc.,
2.820%, dated 03/31/05, to be
repurchased on 04/01/05,
repurchase price $35,336,920
(collateralized by U.S.
Government Agencies,
5.000-5.500%, due 12/01/23-
11/01/32; total market value
$36,044,650) 35,334 35,334
UBS Warburg LLC, 2.840%, dated
03/31/05, to be repurchased
on 04/01/05, repurchase price
$52,121,963 (collateralized
by U.S. Government Agencies,
DN, due 04/25/19; total
market value $53,163,504) 52,118 52,118
--------
Total Repurchase Agreements (Cost
$162,874) 162,874
--------
Total Investments (Cost $896,071)
(a) -- 100.2% 896,071
Liabilities in excess of other
assets -- (0.2)% (1,418)
--------
Net Assets -- 100.0% $894,653
========
</Table>
See notes to schedules of portfolio investments and notes to financial
statements.
65
CLASSIC INSTITUTIONAL U.S. TREASURY SECURITIES
MONEY MARKET FUND
<Table>
<Caption>
- --------------------------------------------------------
Principal
Amount Value
- --------------------------------------------------------
U.S. TREASURY OBLIGATIONS (53.7%)
U.S. TREASURY BILLS (41.0%)
2.555%, 04/07/05 (c) $443,000 $ 442,812
2.643%, 04/15/05 (c) 316,000 315,671
2.361%, 04/21/05 (c) 215,000 214,725
3.009%, 08/25/05 (c) 60,000 59,277
----------
1,032,485
----------
U.S. TREASURY NOTES (12.7%)
6.750%, 05/15/05 165,000 165,922
5.750%, 11/15/05 152,000 154,940
----------
320,862
----------
Total U.S. Treasury Obligations
(Cost $1,353,347) 1,353,347
----------
REPURCHASE AGREEMENTS (58.7%)
ABN AMRO Bank N.V., 2.630%,
dated 03/31/05, to be
repurchased on 04/01/05,
repurchase price
$407,616,842
(collateralized by U.S.
Treasury Obligations,
3.375%-8.125%, due
02/15/08-08/15/19; total
market value $415,740,265) 407,588 407,588
Bear Stearns & Co., Inc.,
2.600%, dated 03/31/05, to
be repurchased on 04/01/05,
repurchase price
$45,440,326 (collateralized
by U.S. Treasury
Obligations, DN-7.250%, due
11/15/07-11/15/27; total
market value $48,214,106) 45,437 45,437
BNP Paribas, 2.630%, dated
03/31/05, to be repurchased
on 04/01/05, repurchase
price $73,883,571
(collateralized by U.S.
Treasury Obligations, DN-
3.000%, due 05/15/05-
05/15/30; total market
value $75,356,051) 73,878 73,878
</Table>
<Table>
<Caption>
- --------------------------------------------------------
Principal
Amount Value
- --------------------------------------------------------
REPURCHASE AGREEMENTS--CONTINUED
Deutsche Bank AG, 2.650%,
dated 03/31/05, to be
repurchased on 04/01/05,
repurchase price
$17,392,774 (collateralized
by U.S. Treasury
Obligations, DN-8.750%, due
05/15/07-02/15/23; total
market value $17,739,346) $ 17,392 $ 17,392
Dresdner Bank AG, 2.600%,
dated 03/31/05, to be
repurchased on 04/01/05,
repurchase price
$68,676,868 (collateralized
by U.S. Treasury
Obligations,
3.875%-12.000%, due
08/15/10-02/15/31; total
market value $70,050,483) 68,672 68,672
Greenwich Capital Markets,
Inc., 2.630%, dated
03/31/05, to be repurchased
on 04/01/05, repurchase
price $71,299,330
(collateralized by U.S.
Treasury Obligations,
2.375%-3.000%, due
02/15/09-01/15/25; total
market value $72,721,739) 71,294 71,294
JPMorgan Chase & Co., 2.600%,
dated 03/31/05, to be
repurchased on 04/01/05,
repurchase price
$64,861,863 (collateralized
by U.S. Treasury
Obligations, 3.625%-4.000%,
due 06/15/09-07/15/09;
total market value
$66,155,000) 64,857 64,857
Lehman Brothers, Inc.,
2.580%, dated 03/31/05, to
be repurchased on 04/01/05,
repurchase price
$121,342,931
(collateralized by U.S.
Treasury Obligations,
DN-8.875%, due
08/15/07-11/15/21; total
market value $123,762,815) 121,334 121,334
</Table>
66
SCHEDULE OF PORTFOLIO INVESTMENTS
STI CLASSIC FUNDS March 31, 2005 (Amounts in thousands, except shares)
CLASSIC INSTITUTIONAL U.S. TREASURY SECURITIES
MONEY MARKET FUND -- CONCLUDED
<Table>
<Caption>
- --------------------------------------------------------
Principal
Amount Value
- --------------------------------------------------------
REPURCHASE AGREEMENTS--CONTINUED
Merrill Lynch & Co., 2.600%,
dated 03/31/05, to be
repurchased on 04/01/05,
repurchase price
$72,295,600 (collateralized
by U.S. Treasury
Obligations, DN-8.750%, due
11/15/17-02/15/23; total
market value $73,736,702) $ 72,290 $ 72,290
Morgan Stanley, 2.650%, dated
03/31/05, to be repurchased
on 04/01/05, repurchase
price $55,274,243
(collateralized by U.S.
Treasury Obligations, DN,
due 02/15/23-11/15/24;
total market value
$56,375,896) 55,270 55,270
</Table>
<Table>
<Caption>
- --------------------------------------------------------
Principal
Amount Value
- --------------------------------------------------------
REPURCHASE AGREEMENTS--CONTINUED
UBS Warburg LLC, 2.630%,
dated 03/31/05, to be
repurchased on 04/01/05,
repurchase price
$484,592,670
(collateralized by U.S.
Treasury Obligations,
2.625%-14.000%, due
05/15/05-11/15/28; total
market value $494,254,362) $484,559 $ 484,559
----------
Total Repurchase Agreements
(Cost $1,482,571) 1,482,571
----------
Total Investments (Cost
$2,835,918) (a) -- 112.4% 2,835,918
Liabilities in excess of other
assets -- (12.4)% (313,450)
----------
Net Assets -- 100.0% $2,522,468
==========
</Table>
See notes to schedules of portfolio investments and notes to financial
statements.
67
NOTES TO SCHEDULES OF PORTFOLIO INVESTMENTS
STI CLASSIC FUNDS March 31, 2005
(+) Amount rounds to less than one thousand.
(a) See notes to financial statements for unrealized appreciation/(depreciation)
of securities on a tax basis.
(b) Variable rate security. Rate presented represents rate in effect at March
31, 2005. Maturity date represents actual maturity date.
(c) Rate represents the effective yield at purchase.
(d) Rule 144A, Section 4(2) or other security which is restricted as to resale
to institutional investors. The Fund's advisor has deemed this security to
be liquid based upon procedures approved by the Board of Trustees.
(e) This security or a partial position of the security was on loan at March
31, 2005. The total value of securities on loan at March 31, 2005 in
thousands was $4,752, $1,871, and $27,116 for Classic Institutional
Short-Term Bond Fund, Classic Institutional Super Short Income Plus Fund,
and Seix Institutional High Yield Fund, respectively.
(f) This security was purchased with cash collateral held from securities
lending.
(g) Step bond.
(h) This security was purchased on a when-issue basis.
(i) Perpetual bond. This is a bond that has no maturity date, is redeemable and
pays a steady stream of interest indefinitely.
The following abbreviations are used in these Schedules of Portfolio
Investments:
<Table>
AMBAC Security insured by the American Municipal
Bond Assurance Corporation
Cl Class
DN Discount Note
FNMA Security insured by Fannie Mae
GO General Obligation
LLC Limited Liability Company
LOC Line of Credit
RB Revenue Bond
REIT Real Estate Investment Trust
Ser Series
</Table>
68
STATEMENTS OF ASSETS AND LIABILITIES (000)
STI CLASSIC FUNDS March 31, 2005
<Table>
<Caption>
Classic
Classic Institutional
Institutional High
Core Bond Quality
Fund Bond Fund
------------- -------------
Assets:
Total Investments, at Cost................................ $345,087 $64,188
======== =======
Investments, at Value..................................... $313,452 $62,224
Repurchase Agreements, at Cost............................ 30,385 1,470
-------- -------
Total Investments......................................... 343,837 63,694
-------- -------
Cash...................................................... 1,464 --
Interest and Dividends Receivable......................... 2,121 661
Receivable for Investment Securities Sold................. 25,314 1,781
Receivable from Advisor................................... -- 47
Prepaid Expenses and Other Assets......................... -- 27
-------- -------
Total Assets.............................................. 372,736 66,210
-------- -------
Liabilities:
Income Distributions Payable.............................. 802 174
Payable for Investment Securities Purchased............... 74,018 1,939
Payable upon Return of Securities Loaned.................. -- --
Investment Advisory Fees Payable.......................... 57 60
Administration Fees Payable............................... 6 2
Distribution and Service Fees............................. 7 16
Custodian Fees Payable.................................... 5 4
Accrued Expenses.......................................... 69 34
-------- -------
Total Liabilities......................................... 74,964 2,229
-------- -------
Total Net Assets.......................................... $297,772 $63,981
======== =======
Net Assets:
Capital................................................... $299,653 $65,392
Undistributed (Distribution in Excess of) Net Investment
Income.................................................. 1 62
Accumulated Net Realized Gains (Losses) on Investment
Transactions............................................ (632) (979)
Net Unrealized Appreciation (Depreciation) on
Investments............................................. (1,250) (494)
-------- -------
Total Net Assets.......................................... $297,772 $63,981
======== =======
NET ASSETS:
Institutional Shares...................................... $176,537 $38,535
T Shares.................................................. $120,967 $25,446
L Shares.................................................. $ 1 N/A
A Shares.................................................. $ 267 N/A
SHARES OUTSTANDING:
Institutional Shares...................................... 17,448 3,910
T Shares.................................................. 11,956 2,582
L Shares.................................................. -- N/A
A Shares.................................................. 26 N/A
NET ASSET VALUE AND REDEMPTION PRICE PER SHARE:
Institutional Shares...................................... $ 10.12 $ 9.85
T Shares.................................................. $ 10.12 $ 9.86
L Shares*................................................. $ 10.12 N/A
A Shares.................................................. $ 10.41 N/A
OFFERING PRICE PER SHARE (100%/(100%-maximum sales charge)
of net asset value adjusted to the nearest cent):
Institutional Shares...................................... $ 10.12 $ 9.85
T Shares.................................................. $ 10.12 $ 9.86
L Shares.................................................. $ 10.12 N/A
A Shares.................................................. $ 10.82 N/A
Maximum Sales Charge -- A Shares.......................... 3.75% N/A
</Table>
Amounts designated as "--" are $0 or have been rounded to $0.
* Redemption Price Per Share Varies by Length of Time Shares are Held.
69
<Table>
<Caption>
Classic Classic Classic
Classic Institutional Classic Institutional Institutional
Institutional Limited Institutional Super Short Total
Intermediate Duration Short-Term Income Return
Bond Fund Fund Bond Fund Plus Fund Bond Fund
- ------------- ------------- ------------- ------------- -------------
$55,705 $82,951 $37,917 $215,509 $67,922
======= ======= ======= ======== =======
$54,686 $79,036 $37,520 $211,261 $61,680
644 3,916 -- 3,519 6,056
------- ------- ------- -------- -------
55,330 82,952 37,520 214,780 67,736
------- ------- ------- -------- -------
-- 8,233 -- -- --
525 599 241 959 541
5,386 -- -- 3,016 797
-- -- 4 -- --
-- -- 5 9 2
------- ------- ------- -------- -------
61,241 91,784 37,770 218,764 69,076
------- ------- ------- -------- -------
155 192 77 478 202
5,871 8,242 -- 3,304 4,747
-- -- 4,864 1,916 --
11 8 -- 37 18
1 -- 1 5 1
1 -- -- 34 9
7 3 3 3 2
16 22 4 12 --
------- ------- ------- -------- -------
6,062 8,467 4,949 5,789 4,979
------- ------- ------- -------- -------
$55,179 $83,317 $32,821 $212,975 $64,097
======= ======= ======= ======== =======
$55,501 $83,260 $33,357 $214,695 $65,074
37 66 11 148 44
16 (10) (150) (1,139) (835)
(375) 1 (397) (729) (186)
------- ------- ------- -------- -------
$55,179 $83,317 $32,821 $212,975 $64,097
======= ======= ======= ======== =======
$47,981 $83,315 $32,821 $ 74,259 $57,761
$ 7,196 $ 1 N/A $138,716 $ 6,336
$ 1 $ 1 N/A N/A N/A
$ 1 N/A N/A N/A N/A
4,757 8,339 3,313 37,122 5,791
714 -- N/A 69,666 635
-- -- N/A N/A N/A
-- N/A N/A N/A N/A
$ 10.08 $ 9.98 $ 9.91 $ 2.00 $ 9.97
$ 10.08 $ 9.98 N/A $ 1.99 $ 9.98
$ 10.08 $ 9.98 N/A N/A N/A
$ 10.08 N/A N/A N/A N/A
$ 10.08 $ 9.98 $ 9.91 $ 2.00 $ 9.97
$ 10.08 $ 9.98 N/A $ 1.99 $ 9.98
$ 10.08 $ 9.98 N/A N/A N/A
$ 10.47 N/A N/A N/A N/A
3.75% N/A N/A N/A N/A
</Table>
See notes to financial statements.
70
STATEMENTS OF ASSETS AND LIABILITIES (000)
STI CLASSIC FUNDS March 31, 2005
<Table>
<Caption>
Classic Classic
Institutional Seix Institutional Classic Classic
U.S. Government Institutional Cash Institutional Institutional
Securities Super High Management U.S. Government U.S. Treasury
Short Income Yield Money Securities Money Securities Money
Plus Fund Fund Market Fund Market Fund Market Fund
---------------- ------------- ------------- ---------------- ----------------
Assets:
Total Investments, at Cost............. $62,381 $1,407,659 $2,591,422 $896,071 $2,835,918
======= ========== ========== ======== ==========
Investments, at Value.................. $57,868 $1,392,201 $2,403,889 $733,197 $1,353,347
Repurchase Agreements, at Cost......... 4,261 7,714 187,533 162,874 1,482,571
------- ---------- ---------- -------- ----------
Total Investments...................... 62,129 1,399,915 2,591,422 896,071 2,835,918
------- ---------- ---------- -------- ----------
Cash................................... -- 5,875 -- -- --
Interest and Dividends Receivable...... 193 26,604 6,647 934 10,179
Receivable for Investment Securities
Sold................................. 1,760 23,865 -- -- --
Prepaid Expenses and Other Assets...... 8 4 -- 20 48
------- ---------- ---------- -------- ----------
Total Assets........................... 64,090 1,456,263 2,598,069 897,025 2,846,145
------- ---------- ---------- -------- ----------
Liabilities:
Income Distributions Payable........... 150 7,939 5,551 1,771 4,421
Payable for Investment Securities
Purchased............................ 1,083 11,432 472 339 318,266
Payable for Paid in Capital Shares
Redeemed............................. 152 -- -- -- --
Payable upon Return of Securities
Loaned............................... -- 28,442 -- -- --
Investment Advisory Fees Payable....... 7 541 136 142 405
Administration Fees Payable............ 2 43 60 20 57
Distribution and Service Fees.......... 3 4 -- -- 298
Custodian Fees Payable................. -- 85 12 6 5
Accrued Expenses....................... 1 153 311 94 225
------- ---------- ---------- -------- ----------
Total Liabilities...................... 1,398 48,639 6,542 2,372 323,677
------- ---------- ---------- -------- ----------
Total Net Assets....................... $62,692 $1,407,624 $2,591,527 $894,653 $2,522,468
======= ========== ========== ======== ==========
Net Assets:
Capital................................ $63,857 $1,398,253 $2,591,553 $894,653 $2,522,634
Undistributed (Distribution in Excess
of) Net Investment Income............ 118 33 -- -- 75
Accumulated Net Realized Gains (Losses)
on Investment Transactions........... (1,031) 17,082 (26) -- (241)
Net Unrealized Appreciation
(Depreciation) on Investments........ (252) (7,744) -- -- --
------- ---------- ---------- -------- ----------
Total Net Assets....................... $62,692 $1,407,624 $2,591,527 $894,653 $2,522,468
======= ========== ========== ======== ==========
NET ASSETS:
Institutional Shares................... $49,623 $1,391,879 $2,591,527 $894,653 $ 697,095
Corporate Trust Shares................. N/A N/A N/A N/A $1,825,373
T Shares............................... N/A $ 2,779 N/A N/A N/A
L Shares............................... $13,069 $ 3,260 N/A N/A N/A
A Shares............................... N/A $ 9,706 N/A N/A N/A
SHARES OUTSTANDING:
Institutional Shares................... 24,927 127,238 2,591,553 894,653 697,107
Corporate Trust Shares................. N/A N/A N/A N/A 1,825,527
T Shares............................... N/A 254 N/A N/A N/A
L Shares............................... 1,320 298 N/A N/A N/A
A Shares............................... N/A 907 N/A N/A N/A
NET ASSET VALUE AND REDEMPTION PRICE PER
SHARE:
Institutional Shares................... $ 1.99 $ 10.94 $ 1.00 $ 1.00 $ 1.00
Corporate Trust Shares................. N/A N/A N/A N/A $ 1.00
T Shares............................... N/A $ 10.94 N/A N/A N/A
L Shares*.............................. $ 9.90 $ 10.93 N/A N/A N/A
A Shares............................... N/A $ 10.70 N/A N/A N/A
OFFERING PRICE PER SHARE
(100%/(100%-maximum sales charge) of
net asset value adjusted to the nearest
cent):
Institutional Shares................... $ 1.99 $ 10.94 $ 1.00 $ 1.00 $ 1.00
Corporate Trust Shares................. N/A N/A N/A N/A $ 1.00
T Shares............................... N/A $ 10.94 N/A N/A N/A
L Shares............................... $ 9.90 $ 10.93 N/A N/A N/A
A Shares............................... N/A $ 11.12 N/A N/A N/A
Maximum Sales Charge -- A Shares....... N/A 3.75% N/A N/A N/A
</Table>
Amounts designated as "--" are $0 or have been rounded to $0.
* Redemption Price Per Share Varies by Length of Time Shares are Held.
See notes to financial statements.
71
(This page intentionally left blank)
72
STATEMENTS OF OPERATIONS (000)
STI CLASSIC FUNDS For the Periods Indicated
<Table>
<Caption>
Classic Institutional Classic Institutional
Core Bond High Quality
Fund Bond Fund
--------------------- ----------------------
11/01/04- 11/01/03- 06/01/04- 10/27/03*-
03/31/05 10/31/04 03/31/05 05/31/04
--------- --------- --------- ----------
Investment Income:
Dividend Income........................................... $ -- $ 3 $ 11 $ 26
Interest Income........................................... 2,454 1,891 3,467 1,389
Security Lending Income................................... -- -- -- --
------- ------ ------ -------
Total Investment Income................................... 2,454 1,894 3,478 1,415
------- ------ ------ -------
Expenses:
Investment Advisory Fees.................................. 176 136 547 252
Administration, Fund Accounting and Transfer Agent Fees... 19 39 37 35
Shareholder Service Fees -- Institutional Shares.......... -- -- 82 31
Shareholder Service Fees -- T Shares...................... 54 -- 309 152
Distribution and Service Fees -- L Shares................. -- --
Distribution Fees -- A Shares............................. -- 1
Transfer Agent Shareholder Servicing Fees................. -- -- -- 1
Custodian Fees............................................ 3 84 8 1
Professional Fees......................................... 5 36 8 4
Insurance Fees............................................ 1 1 3 --
Offering Costs............................................ -- -- 8 12
Registration Fees......................................... 10 20 4 --
Transfer Agent Out of Pocket Expenses..................... 3 2 8 2
Transfer Agent Fees -- Institutional Shares............... -- -- 2 8
Transfer Agent Fees -- T Shares........................... -- -- 2 7
Transfer Agent Fees -- L Shares........................... -- --
Printing Fees............................................. 13 1 4 2
Trustees' Fees............................................ 2 2 2 1
Other Fees................................................ 26 2 -- 2
------- ------ ------ -------
Total Expenses............................................ 312 324 1,024 510
Less: Investment Advisory Fees Waived................... -- (78) (120) (57)
Less: Administration Fees Waived........................ -- -- -- --
Less: Shareholder Service Fees Waived -- Institutional
Shares................................................. -- -- (19) (20)
Less: Shareholder Service Fees Waived -- T Shares....... (37) -- (29) (41)
Less: Distribution and Service Fees Waived -- L
Shares................................................. -- --
Expense Offset -- Insurance Premiums.................... -- -- (1) --
------- ------ ------ -------
Net Expenses.............................................. 275 246 855 392
------- ------ ------ -------
Net Investment Income..................................... 2,179 1,648 2,623 1,023
------- ------ ------ -------
Net Realized and Unrealized Gain (Loss) on Investments:
Net Realized Gain (Loss) on Investments Sold.............. (433) 587 (936) 197
Net Change in Unrealized Appreciation (Depreciation) on
Investments............................................. (2,062) 302 2,388 (2,882)
------- ------ ------ -------
Total Net Realized and Unrealized Gain (Loss) on
Investments............................................. (2,495) 889 1,452 (2,685)
------- ------ ------ -------
Change in Net Assets from Operations...................... $ (316) $2,537 $4,075 $(1,662)
======= ====== ====== =======
</Table>
* Commencement of operations.
Amounts designated as "--" are $0 or have been rounded to $0.
73
<Table>
<Caption>
Classic Institutional Classic Institutional Classic Institutional Classic Institutional Classic Institutional
Intermediate Limited Duration Short-Term Super Short Income Total Return
Bond Fund Fund Bond Fund Plus Fund Bond Fund
- --------------------- --------------------- --------------------- --------------------- ----------------------
11/01/04- 11/01/03- 11/01/04- 11/01/03- 06/01/04- 06/01/03- 06/01/04- 06/01/03- 06/01/04- 10/15/03*-
03/31/05 10/31/04 03/31/05 10/31/04 03/31/05 05/31/04 03/31/05 05/31/04 03/31/05 05/31/04
- --------- --------- --------- --------- --------- --------- --------- --------- --------- ----------
$ -- $ 1 $ -- $ 3 $ 13 $ 7 $ 4 $ 74 $ 2 $ 34
685 1,176 1,042 1,973 763 640 4,333 4,833 2,027 660
-- -- -- -- 6 2 1 5 -- --
------- ------ ------ ------ ----- ----- ------ ------- ------ -------
685 1,177 1,042 1,976 782 649 4,338 4,912 2,029 694
------- ------ ------ ------ ----- ----- ------ ------- ------ -------
48 79 46 159 169 162 969 1,355 218 86
5 24 12 109 10 19 68 186 16 13
-- -- -- -- 71 68 187 360 53 16
3 -- -- -- 297 317 77 39
-- -- -- --
-- --
-- -- -- -- -- 1 1 7 -- --
-- 33 -- 61 7 1 9 6 8 --
-- 36 -- 59 1 1 7 12 2 2
-- 1 1 3 1 -- 4 2 -- --
-- -- -- -- -- -- -- -- 6 13
-- 13 4 6 5 1 13 11 1 --
1 -- 1 3 2 1 9 9 3 1
-- -- -- -- 2 16 2 16 2 8
-- -- -- -- 2 16 2 7
-- -- -- --
-- -- 8 2 1 1 9 10 1 1
-- 1 -- 6 -- -- 2 3 -- --
1 1 2 2 7 1 2 16 -- 1
------- ------ ------ ------ ----- ----- ------ ------- ------ -------
58 188 74 410 276 272 1,581 2,326 389 187
-- (47) -- (87) (85) (68) (581) (812) (49) (29)
-- -- -- -- -- -- -- -- -- --
-- -- -- -- (71) (68) (151) (360) (15) (16)
-- -- -- -- (10) (63) (10) (17)
-- -- -- --
-- -- -- -- -- -- (2) -- -- --
------- ------ ------ ------ ----- ----- ------ ------- ------ -------
58 141 74 323 120 136 837 1,091 315 125
------- ------ ------ ------ ----- ----- ------ ------- ------ -------
627 1,036 968 1,653 662 513 3,501 3,821 1,714 569
------- ------ ------ ------ ----- ----- ------ ------- ------ -------
23 607 (17) (6) (132) 91 (141) (460) (493) (186)
(1,006) (71) 37 (31) (183) (557) (311) (1,377) 1,299 (1,485)
------- ------ ------ ------ ----- ----- ------ ------- ------ -------
(983) 536 20 (37) (315) (466) (452) (1,837) 806 (1,671)
------- ------ ------ ------ ----- ----- ------ ------- ------ -------
$ (356) $1,572 $ 988 $1,616 $ 347 $ 47 $3,049 $ 1,984 $2,520 $(1,102)
======= ====== ====== ====== ===== ===== ====== ======= ====== =======
</Table>
See notes to financial statements.
74
STATEMENTS OF OPERATIONS (000)
STI CLASSIC FUNDS For the Periods Indicated
<Table>
<Caption>
Classic Institutional
U.S. Government
Securities Super Short
Income Plus Fund
--------------------------
06/01/04- 06/01/03-
03/31/05 05/31/04
--------- ---------
Investment Income:
Dividend Income........................................... $ 6 $ 41
Interest Income........................................... 1,759 1,948
Other Income.............................................. -- --
Security Lending Income................................... -- 1
Less: Foreign Taxes Withheld.............................. -- --
------ ------
Total Investment Income................................... 1,765 1,990
------ ------
Expenses:
Investment Advisory Fees.................................. 321 537
Administration, Fund Accounting and Transfer Agency
Fees.................................................... 29 92
Shareholder Service Fees -- Institutional Shares.......... 159 224
Shareholder Service Fees -- Corporate Trust Shares........ -- --
Shareholder Service Fees -- T Shares......................
Distribution and Service Fees -- L Shares................. 67 177
Distribution Fees -- A Shares............................. --
Transfer Agent Shareholder Servicing Fees................. -- 4
Custodian Fees............................................ 5 3
Professional Fees......................................... 2 6
Insurance Fees............................................ 2 1
Registration Fees......................................... 7 5
Transfer Agent Out of Pocket Expenses..................... 1 4
Transfer Agent Fees -- Institutional Shares............... 2 16
Transfer Agent Fees -- Corporate Trust Shares............. -- --
Transfer Agent Fees -- T Shares...........................
Transfer Agent Fees -- L Shares........................... 3 17
Printing Fees............................................. 2 5
Trustees' Fees............................................ 1 1
Other Fees................................................ -- 10
------ ------
Total Expenses............................................ 601 1,102
Less: Investment Advisory Fees Waived................... (225) (375)
Less: Administration Fees Waived........................ -- --
Less: Shareholder Service Fees Waived -- Institutional
Shares................................................. (159) (224)
Less: Shareholder Service Fees Waived -- T Shares.......
Less: Distribution and Service Fees Waived -- L
Shares................................................. (22) (82)
Expense Offset -- Insurance Premiums.................... (1) --
------ ------
Net Expenses.............................................. 194 421
------ ------
Net Investment Income..................................... 1,571 1,569
------ ------
Net Realized and Unrealized Gain (Loss) on Investments:
Net Realized Gain (Loss) on Investments Sold.............. (51) (257)
Net Change in Unrealized Appreciation (Depreciation) on
Investments............................................. (108) (560)
------ ------
Total Net Realized and Unrealized Gain (Loss) on
Investments............................................. (159) (817)
------ ------
Change in Net Assets from Operations...................... $1,412 $ 752
====== ======
</Table>
* Commencement of operations.
Amounts designated as "--" are $0 or have been rounded to $0.
75
<Table>
<Caption>
Seix Institutional Classic Institutional Classic Institutional Classic Institutional
High Yield Cash Management U.S. Government Securities U.S. Treasury Securities
Fund Money Market Fund Money Market Fund Money Market Fund
- --------------------- --------------------- --------------------------- -------------------------
11/01/04- 11/01/03- 06/01/04- 06/01/03- 06/01/04- 06/01/03- 06/01/04- 06/01/03-
03/31/05 10/31/04 03/31/05 05/31/04 03/31/05 05/31/04 03/31/05 05/31/04
- --------- --------- --------- --------- ------------ ------------ ----------- -----------
$ 88 $ 733 $ -- $ 583 $ -- $ -- $ -- $ 69
43,080 97,585 41,572 30,109 14,000 10,632 32,021 19,313
-- 1,729 -- -- -- -- -- --
57 -- -- -- -- -- -- --
(19) (2) -- -- -- -- -- --
- --------- --------- --------- --------- ------------ ------------ ----------- -----------
43,206 100,045 41,572 30,692 14,000 10,632 32,021 19,382
- --------- --------- --------- --------- ------------ ------------ ----------- -----------
3,210 7,119 4,372 5,543 1,492 1,967 3,487 3,982
173 1,032 755 1,899 258 674 587 1,364
-- -- -- -- -- -- -- --
2,577 2,947
1 --
8 --
15 40
-- -- 5 74 2 26 4 53
57 495 35 65 15 24 22 50
100 122 98 104 34 39 91 78
8 26 89 25 17 15 44 8
-- 99 107 101 18 35 32 63
22 63 134 91 29 33 55 66
-- -- 2 16 2 16 2 16
2 16
-- --
-- --
38 21 54 84 21 31 48 63
7 49 27 29 9 10 21 21
86 17 97 41 52 2 139 49
- --------- --------- --------- --------- ------------ ------------ ----------- -----------
3,725 9,083 5,775 8,072 1,949 2,872 7,111 8,776
(409) (1,232) (1,483) (740) (73) (84) (185) (274)
-- -- (78) (321) (27) (170) (55) (329)
-- -- -- -- -- -- -- --
-- --
(3) --
-- -- (23) -- (7) -- (16) --
- --------- --------- --------- --------- ------------ ------------ ----------- -----------
3,313 7,851 4,191 7,011 1,842 2,618 6,855 8,173
- --------- --------- --------- --------- ------------ ------------ ----------- -----------
39,893 92,194 37,381 23,681 12,158 8,014 25,166 11,209
- --------- --------- --------- --------- ------------ ------------ ----------- -----------
17,216 19,041 (23) 81 -- 3 (241) 1,300
(62,779) 25,392 -- -- -- -- -- --
- --------- --------- --------- --------- ------------ ------------ ----------- -----------
(45,563) 44,433 (23) 81 -- 3 (241) 1,300
- --------- --------- --------- --------- ------------ ------------ ----------- -----------
$ (5,670) $136,627 $37,358 $23,762 $12,158 $ 8,017 $24,925 $12,509
========= ========= ========= ========= ============ ============ =========== ===========
</Table>
See notes to financial statements.
76
STATEMENTS OF CHANGES IN NET ASSETS (000)
STI CLASSIC FUNDS For the Periods Indicated
<Table>
<Caption>
Classic Institutional
Core Bond Fund
-----------------------------------
11/01/04- 11/01/03- 11/01/02-
03/31/05 10/31/04 10/31/03
--------- --------- ---------
Operations:
Net Investment Income..................................... $ 2,179 $ 1,648 $ 1,556
Net Realized Gain (Loss) on Investments Sold.............. (433) 587 2,997
Net Change in Unrealized Appreciation (Depreciation) on
Investments............................................. (2,062) 302 (152)
-------- ------- --------
Change in Net Assets from Operations...................... (316) 2,537 4,401
-------- ------- --------
Dividends and Distributions to Shareholders:
Net Investment Income:
Institutional Shares.................................... (1,571) (1,696) (1,666)
T Shares................................................ (674) -- --
L Shares................................................ -- -- --
A Shares................................................ (5) (6) (5)
Net Realized Gains:
Institutional Shares.................................... (562) (758) --
T Shares................................................ -- -- --
L Shares................................................ -- -- --
A Shares................................................ (2) (6) --
-------- ------- --------
Total Dividends and Distributions......................... (2,814) (2,466) (1,671)
-------- ------- --------
Capital Transactions:
Change in Net Assets from Capital Transactions............ 244,464 22,402 (49,658)
-------- ------- --------
Change in Net Assets.................................... 241,334 22,473 (46,928)
-------- ------- --------
Net Assets:
Beginning of Period....................................... 56,438 33,965 80,893
-------- ------- --------
End of Period............................................. $297,772 $56,438 $ 33,965
======== ======= ========
Undistributed (distributions in excess of) net investment
income, end of period..................................... $ 1 $ (56) $ (2)
======== ======= ========
</Table>
* Commencement of operations.
Amounts designated as "--" are either $0 or have been rounded to $0.
77
<Table>
<Caption>
Classic Institutional Classic Institutional Classic Institutional Classic Institutional
High Quality Bond Fund Intermediate Bond Fund Limited Duration Fund Short-Term Bond Fund
- ---------------------- --------------------------------- --------------------------------- ---------------------------------
06/01/04- 10/27/03*- 11/01/04- 11/01/03- 11/01/02- 11/01/04- 11/01/03- 11/01/02- 06/01/04- 06/01/03- 06/01/02-
03/31/05 05/31/04 03/31/05 10/31/04 10/31/03 03/31/05 10/31/04 10/31/03 03/31/05 05/31/04 05/31/03
- --------- ---------- --------- --------- --------- --------- --------- --------- --------- --------- ---------
$ 2,623 $ 1,023 $ 627 $ 1,036 $ 1,006 $ 968 $ 1,653 $ 1,020 $ 662 $ 513 $ 450
(936) 197 23 607 637 (17) (6) (38) (132) 91 392
2,388 (2,882) (1,006) (71) (140) 37 (31) (2) (183) (557) 291
- --------- ---------- --------- --------- --------- --------- --------- --------- --------- --------- ---------
4,075 (1,662) (356) 1,572 1,503 988 1,616 980 347 47 1,133
- --------- ---------- --------- --------- --------- --------- --------- --------- --------- --------- ---------
(819) (267) (573) (1,036) (1,126) (903) (1,654) (965) (667) (512) (450)
(1,765) (789) (41) -- -- -- -- --
-- -- -- -- -- --
-- -- --
(50) -- (341) -- -- (3) -- -- (59) (159) (268)
(134) -- (21) -- -- -- -- --
-- -- -- -- -- --
-- -- --
- --------- ---------- --------- --------- --------- --------- --------- --------- --------- --------- ---------
(2,768) (1,056) (976) (1,036) (1,126) (906) (1,654) (965) (726) (671) (718)
- --------- ---------- --------- --------- --------- --------- --------- --------- --------- --------- ---------
(71,614) 137,006 20,660 6,626 (11,972) (46,026) (17,214) 134,200 (2,409) 15,456 4,186
- --------- ---------- --------- --------- --------- --------- --------- --------- --------- --------- ---------
(70,307) 134,288 19,328 7,162 (11,595) (45,944) (17,252) 134,215 (2,788) 14,832 4,601
- --------- ---------- --------- --------- --------- --------- --------- --------- --------- --------- ---------
134,288 -- 35,851 28,689 40,284 129,261 146,513 12,298 35,609 20,777 16,176
- --------- ---------- --------- --------- --------- --------- --------- --------- --------- --------- ---------
$ 63,981 $134,288 $55,179 $35,851 $ 28,689 $ 83,317 $129,261 $146,513 $32,821 $35,609 $20,777
========= ========== ========= ========= ========= ========= ========= ========= ========= ========= =========
$ 62 $ 3 $ 37 $ 18 $ -- $ 66 $ 11 $ 27 $ 11 $ 1 $ --
========= ========== ========= ========= ========= ========= ========= ========= ========= ========= =========
</Table>
See notes to financial statements.
78
STATEMENTS OF CHANGES IN NET ASSETS (000)
STI CLASSIC FUNDS For the Periods Indicated
<Table>
<Caption>
Classic Institutional
Classic Institutional Classic Institutional U.S. Government
Super Short Income Total Return Securities Super Short
Plus Fund Bond Fund Income Plus Fund
--------------------------------- ---------------------- ---------------------------------
06/01/04- 06/01/03- 06/01/02- 06/01/04- 10/15/03*- 06/01/04- 06/01/03- 06/01/02-
03/31/05 05/31/04 05/31/03 03/31/05 05/31/04 03/31/05 05/31/04 05/31/03
--------- --------- --------- --------- ---------- --------- --------- ---------
Operations:
Net Investment Income.......... $ 3,501 $ 3,821 $ 1,924 $ 1,714 $ 569 $ 1,571 $ 1,569 $ 1,239
Net Realized Gain (Loss) on
Investments Sold............. (141) (460) 73 (493) (186) (51) (257) 192
Net Change in Unrealized
Appreciation (Depreciation)
on Investments............... (311) (1,377) 929 1,299 (1,485) (108) (560) 356
-------- -------- -------- ------- ------- -------- -------- --------
Change in Net Assets from
Operations................... 3,049 1,984 2,926 2,520 (1,102) 1,412 752 1,787
-------- -------- -------- ------- ------- -------- -------- --------
Dividends and Distributions to
Shareholders:
Net Investment Income:
Institutional Shares......... (1,503) (2,161) (1,869) (987) (255) (1,372) (1,347) (1,504)
Corporate Trust Shares.......
T Shares..................... (2,237) (1,656) (264) (801) (352)
L Shares..................... (306) (559) (16)
A Shares.....................
Net Realized Gains:
Institutional Shares......... -- -- (14) -- -- -- -- (61)
Corporate Trust Shares.......
T Shares..................... -- -- (1) -- --
L Shares..................... -- -- --
A Shares.....................
-------- -------- -------- ------- ------- -------- -------- --------
Total Dividends and
Distributions................ (3,740) (3,817) (2,148) (1,788) (607) (1,678) (1,906) (1,581)
-------- -------- -------- ------- ------- -------- -------- --------
Capital Transactions:
Change in Net Assets from
Capital Transactions......... (36,174) 35,286 181,879 15,875 49,199 (52,561) (2,362) 90,691
-------- -------- -------- ------- ------- -------- -------- --------
Change in Net Assets......... (36,865) 33,453 182,657 16,607 47,490 (52,827) (3,516) 90,897
-------- -------- -------- ------- ------- -------- -------- --------
Net Assets:
Beginning of Period.......... 249,840 216,387 33,730 47,490 -- 115,519 119,035 28,138
-------- -------- -------- ------- ------- -------- -------- --------
End of Period................ $212,975 $249,840 $216,387 $64,097 $47,490 $ 62,692 $115,519 $119,035
======== ======== ======== ======= ======= ======== ======== ========
Undistributed (distributions in
excess of) net investment
income, end of period.......... $ 148 $ -- $ (4) $ 44 $ -- $ 118 $ 2 $ (3)
======== ======== ======== ======= ======= ======== ======== ========
</Table>
* Commencement of operations.
Amounts designated as "--" are either $0 or have been rounded to $0.
79
<Table>
<Caption>
Classic Institutional Classic Institutional
Seix Institutional Cash Management U.S. Government Securities
High Yield Fund Money Market Fund Money Market Fund
------------------------------------ ------------------------------------ -----------------------------------
11/01/04- 11/01/03- 11/01/02- 06/01/04- 06/01/03- 06/01/02- 06/01/04- 06/01/03- 06/01/02-
03/31/05 10/31/04 10/31/03 03/31/05 05/31/04 05/31/03 03/31/05 05/31/04 05/31/03
---------- ---------- ---------- ---------- ---------- ---------- --------- ---------- ----------
$ 39,893 $ 92,194 $ 34,679 $ 37,381 $ 23,681 $ 45,953 $ 12,158 $ 8,014 $ 14,586
17,216 19,041 4,310 (23) 81 13 -- 3 --
(62,779) 25,392 29,589 -- -- -- -- -- --
---------- ---------- ---------- ---------- ---------- ---------- -------- ---------- ----------
(5,670) 136,627 68,578 37,358 23,762 45,966 12,158 8,017 14,586
---------- ---------- ---------- ---------- ---------- ---------- -------- ---------- ----------
(39,447) (90,978) (33,988) (37,463) (23,681) (45,956) (12,161) (8,014) (14,586)
(61) (5) --
(45) -- --
(363) (836) (759)
(19,147) (2,278) -- -- (15) -- -- -- --
(29) -- --
(17) -- --
(192) (31) --
---------- ---------- ---------- ---------- ---------- ---------- -------- ---------- ----------
(59,301) (94,128) (34,747) (37,463) (23,696) (45,956) (12,161) (8,014) (14,586)
---------- ---------- ---------- ---------- ---------- ---------- -------- ---------- ----------
(234,489) 591,600 947,260 222,783 (616,967) (423,866) 36,396 (181,809) 14,352
---------- ---------- ---------- ---------- ---------- ---------- -------- ---------- ----------
(299,460) 634,099 981,091 222,678 (616,901) (423,856) 36,393 (181,806) 14,352
---------- ---------- ---------- ---------- ---------- ---------- -------- ---------- ----------
1,707,084 1,072,985 91,894 2,368,849 2,985,750 3,409,606 858,260 1,040,066 1,025,714
---------- ---------- ---------- ---------- ---------- ---------- -------- ---------- ----------
$1,407,624 $1,707,084 $1,072,985 $2,591,527 $2,368,849 $2,985,750 $894,653 $ 858,260 $1,040,066
========== ========== ========== ========== ========== ========== ======== ========== ==========
$ 33 $ 33 $ (35) $ -- $ 79 $ -- $ -- $ 3 $ --
========== ========== ========== ========== ========== ========== ======== ========== ==========
<Caption>
Classic Institutional
U.S. Treasury Securities
Money Market Fund
------------------------------------
06/01/04- 06/01/03- 06/01/02-
03/31/05 05/31/04 05/31/03
---------- ---------- ----------
$ 25,166 $ 11,209 $ 22,122
(241) 1,300 900
-- -- --
---------- ---------- ----------
24,925 12,509 23,022
---------- ---------- ----------
(7,533) (3,696) (6,751)
(18,295) (7,522) (15,371)
-- (280) (290)
-- (903) (844)
---------- ---------- ----------
(25,828) (12,401) (23,256)
---------- ---------- ----------
723,872 (152,859) (404,181)
---------- ---------- ----------
722,969 (152,751) (404,415)
---------- ---------- ----------
1,799,499 1,952,250 2,356,665
---------- ---------- ----------
$2,522,468 $1,799,499 $1,952,250
========== ========== ==========
$ 75 $ (5) $ 4
========== ========== ==========
</Table>
See notes to financial statements.
80
FINANCIAL HIGHLIGHTS
STI CLASSIC FUNDS Selected Data For a Share of Beneficial Interest Outstanding
Throughout the
Periods Indicated.
<Table>
<Caption>
Net Asset Net Realized
Value, Net and Unrealized Dividends from
Beginning of Investment Gains (Losses) Total From Net Investment
Period Income on Investments Operations Income
------------ ---------- -------------- ---------- --------------
CLASSIC INSTITUTIONAL CORE BOND FUND
Institutional Shares
Period Ended March 31, 2005 $10.30 0.15 (0.14) 0.01 (0.14)
Year Ended October 31, 2004** $10.31 0.31 0.23 0.54 (0.32)
Year Ended October 31, 2003 $10.00 0.30 0.35 0.65 (0.34)
Year Ended October 31, 2002 $10.34 0.42 (0.29) 0.13 (0.42)
Year Ended October 31, 2001 $ 9.66 0.59 0.70 1.29 (0.61)
Year Ended October 31, 2000 $ 9.67 0.63 (0.02) 0.61 (0.62)
T Shares
Period Ended March 31, 2005 $10.30 0.13 (0.13) -- (0.13)
Period Ended October 31,
2004** (b) $10.25 0.01 0.06 0.07 (0.02)
L Shares
Period Ended March 31, 2005 $10.30 0.11 (0.13) (0.02) (0.11)
Period Ended October 31,
2004** (b) $10.25 0.01 0.06 0.07 (0.02)
A Shares
Period Ended March 31, 2005 $10.60 0.12(a) (0.13) (a) (0.01) (0.13)
Year Ended October 31, 2004** $10.49 0.18 0.35 0.53 (0.19)
Year Ended October 31, 2003 $10.08 0.29 0.34 0.63 (0.22)
Period Ended October 31,
2002 (c) $10.00 0.27 0.09 0.36 (0.28)
CLASSIC INSTITUTIONAL HIGH QUALITY BOND FUND
Institutional Shares
Period Ended March 31, 2005*** $ 9.84 0.21 0.02 0.23 (0.21)
Period Ended May 31, 2004 (d) $10.00 0.12(a) (0.16) (a) (0.04) (0.12)
T Shares
Period Ended March 31, 2005*** $ 9.84 0.19 0.03 0.22 (0.19)
Period Ended May 31, 2004 (e) $10.00 0.11(a) (0.16) (a) (0.05) (0.11)
CLASSIC INSTITUTIONAL INTERMEDIATE BOND FUND
Institutional Shares
Period Ended March 31, 2005 $10.37 0.14 (0.21) (0.07) (0.14)
Year Ended October 31, 2004** $10.23 0.34 0.14 0.48 (0.34)
Year Ended October 31, 2003 $10.12 0.37 0.15 0.52 (0.41)
Year Ended October 31, 2002 $10.63 0.47 (0.23) 0.24 (0.50)
Year Ended October 31, 2001 $ 9.96 0.57 0.68 1.25 (0.58)
Year Ended October 31, 2000 $ 9.92 0.64 0.04 0.68 (0.64)
T Shares
Period Ended March 31, 2005 $10.36 0.14 (0.21) (0.07) (0.13)
Period Ended October 31,
2004** (b) $10.32 0.02 0.04 0.06 (0.02)
L Shares
Period Ended March 31, 2005 $10.36 0.11 (0.21) (0.10) (0.10)
Period Ended October 31,
2004** (b) $10.32 0.01 0.04 0.05 (0.01)
A Shares
Period Ended March 31, 2005 $10.36 0.13 (0.21) (0.08) (0.12)
Period Ended October 31,
2004** (b) $10.32 0.02 0.04 0.06 (0.02)
CLASSIC INSTITUTIONAL LIMITED DURATION FUND
Institutional Shares
Period Ended March 31, 2005 $ 9.98 0.08 -- 0.08 (0.08)
Year Ended October 31, 2004** $ 9.98 0.11 -- 0.11 (0.11)
Year Ended October 31, 2003 $10.00 0.11 (0.02) 0.09 (0.11)
Period Ended October 31,
2002, (f) $10.00 --* -- --* --*
T Shares
Period Ended March 31, 2005 $ 9.98 0.08 -- 0.08 (0.08)
Period Ended October 31,
2004** (b) $ 9.98 0.01 -- 0.01 (0.01)
L Shares
Period Ended March 31, 2005 $ 9.98 0.07 -- 0.07 (0.07)
Period Ended October 31,
2004** (b) $ 9.98 0.01 -- 0.01 (0.01)
<Caption>
Distributions Total
from Realized Dividends and
Capital Gains Distributions
------------- -------------
CLASSIC INSTITUTIONAL CORE BOND
Institutional Shares
Period Ended March 31, 2005 (0.05) (0.19)
Year Ended October 31, 2004** (0.23) (0.55)
Year Ended October 31, 2003 -- (0.34)
Year Ended October 31, 2002 (0.05) (0.47)
Year Ended October 31, 2001 -- (0.61)
Year Ended October 31, 2000 -- (0.62)
T Shares
Period Ended March 31, 2005 (0.05) (0.18)
Period Ended October 31,
2004** (b) -- (0.02)
L Shares
Period Ended March 31, 2005 (0.05) (0.16)
Period Ended October 31,
2004** (b) -- (0.02)
A Shares
Period Ended March 31, 2005 (0.05) (0.18)
Year Ended October 31, 2004** (0.23) (0.42)
Year Ended October 31, 2003 -- (0.22)
Period Ended October 31,
2002 (c) -- (0.28)
CLASSIC INSTITUTIONAL HIGH QUALITY BOND FUND
Institutional Shares
Period Ended March 31, 2005*** (0.01) (0.22)
Period Ended May 31, 2004 (d) -- (0.12)
T Shares
Period Ended March 31, 2005*** (0.01) (0.20)
Period Ended May 31, 2004 (e) -- (0.11)
CLASSIC INSTITUTIONAL INTERMEDIATE BOND FUND
Institutional Shares
Period Ended March 31, 2005 (0.08) (0.22)
Year Ended October 31, 2004** -- (0.34)
Year Ended October 31, 2003 -- (0.41)
Year Ended October 31, 2002 (0.25) (0.75)
Year Ended October 31, 2001 -- (0.58)
Year Ended October 31, 2000 -- (0.64)
T Shares
Period Ended March 31, 2005 (0.08) (0.21)
Period Ended October 31,
2004** (b) -- (0.02)
L Shares
Period Ended March 31, 2005 (0.08) (0.18)
Period Ended October 31,
2004** (b) -- (0.01)
A Shares
Period Ended March 31, 2005 (0.08) (0.20)
Period Ended October 31,
2004** (b) -- (0.02)
CLASSIC INSTITUTIONAL LIMITED DURATION FUND
Institutional Shares
Period Ended March 31, 2005 --* (0.08)
Year Ended October 31, 2004** -- (0.11)
Year Ended October 31, 2003 -- (0.11)
Period Ended October 31,
2002, (f) -- --*
T Shares
Period Ended March 31, 2005 --* (0.08)
Period Ended October 31,
2004** (b) -- (0.01)
L Shares
Period Ended March 31, 2005 --* (0.07)
Period Ended October 31,
2004** (b) -- (0.01)
</Table>
81
<Table>
<Caption>
Ratio of
Ratio of Expenses to
Net Assets Net Assets, Ratio of Net Investment Average Net Assets Portfolio
Value, End Total End of Net Expenses to Income to (Excluding Waivers Turnover
of Period Return+ Period (000) Average Net Assets++ Average Net Assets++ and Expense Offset)++ Rate
- ---------- ------- ------------ -------------------- -------------------- --------------------- ---------
$10.12 0.09% $176,537 0.37% 3.12% 0.37% 150%
$10.30 5.49% $ 56,019 0.45% 3.03% 0.59% 330%
$10.31 6.58% $ 33,662 0.45% 3.10% 0.51% 463%
$10.00 1.38% $ 80,727 0.45% 4.08% 0.70% 502%
$10.34 13.82% $ 52,034 0.45% 5.85% 0.70% 492%
$ 9.66 6.63% $ 58,099 0.45% 6.57% 0.63% 522%
$10.12 0.03% $120,967 0.45% 2.95% 0.62% 150%
$10.30 0.67% $ 1 0.56% 3.06% 0.71% 330%
$10.12 (0.17)% $ 1 1.01% 2.50% 1.37% 150%
$10.30 0.65% $ 1 1.10% 2.71% 1.41% 330%
$10.41 (0.11)% $ 267 0.62% 2.78% 0.62% 150%
$10.60 5.22% $ 417 0.70% 2.80% 0.83% 330%
$10.49 6.24% $ 303 0.68% 2.66% 0.68% 463%
$10.08 3.69% $ 166 0.80% 3.30% 1.11% 502%
$ 9.85 2.30% $ 38,535 0.66% 2.51% 0.90% 290%
$ 9.84 (0.37)% $ 25,506 0.65% 2.09% 0.92% 31%
$ 9.86 2.26% $ 25,446 0.82% 2.33% 0.94% 290%
$ 9.84 (0.52)% $108,782 0.82% 2.00% 1.04% 31%
$10.08 (0.75)% $ 47,981 0.29% 3.25% 0.29% 94%
$10.37 4.73% $ 35,848 0.45% 3.25% 0.59% 130%
$10.23 5.16% $ 28,689 0.45% 3.42% 0.56% 277%
$10.12 2.47% $ 40,284 0.45% 4.63% 0.73% 237%
$10.63 12.87% $ 26,192 0.45% 5.50% 0.76% 431%
$ 9.96 7.08% $ 11,207 0.45% 6.44% 0.88% 342%
$10.08 (0.74)% $ 7,196 0.48% 3.12% 0.48% 94%
$10.36 0.53% $ 1 0.71% 2.63% 0.71% 130%
$10.08 (0.96)% $ 1 0.91% 2.47% 1.36% 94%
$10.36 0.51% $ 1 1.00% 2.22% 1.41% 130%
$10.08 (0.82)% $ 1 0.63% 2.84% 0.63% 94%
$10.36 0.53% $ 1 0.71% 2.58% 0.71% 130%
$ 9.98 0.84% $ 83,315 0.16% 2.12% 0.16% 12%
$ 9.98 1.09% $129,259 0.20% 1.04% 0.26% 101%
$ 9.98 0.92% $146,513 0.20% 1.10% 0.26% 244%
$10.00 --(p) $ 12,298 --(p) --(p) --(p) --(p)
$ 9.98 0.82% $ 1 0.21% 2.11% 0.21% 12%
$ 9.98 0.08% $ 1 0.37% 1.46% 0.37% 101%
$ 9.98 0.67% $ 1 0.58% 1.75% 0.58% 12%
$ 9.98 0.06% $ 1 0.71% 1.12% 0.71% 101%
</Table>
See notes to financial highlights and notes to financial statements.
82
FINANCIAL HIGHLIGHTS
STI CLASSIC FUNDS Selected Data For a Share of Beneficial Interest Outstanding
Throughout the
Periods Indicated.
<Table>
<Caption>
Net Asset Net Realized
Value, Net and Unrealized Dividends from
Beginning of Investment Gains (Losses) Total From Net Investment
Period Income on Investments Operations Income
------------ ---------- -------------- ---------- --------------
CLASSIC INSTITUTIONAL SHORT-TERM BOND FUND
Institutional Shares
Period Ended March 31, 2005*** $10.02 0.20 (0.09) 0.11 (0.20)
Year Ended May 31, 2004 $10.24 0.19(a) (0.15) (a) 0.04 (0.19)
Year Ended May 31, 2003 $10.03 0.24 0.36 0.60 (0.24)
Period Ended May 31, 2002 (g) $10.00 0.01 0.03 0.04 (0.01)
CLASSIC INSTITUTIONAL SUPER SHORT INCOME PLUS FUND
Institutional Shares
Period Ended March 31, 2005*** $ 2.01 0.03 (0.01) 0.02 (0.03)
Year Ended May 31, 2004 $ 2.02 0.03(a) (0.01) (a) 0.02 (0.03)
Year Ended May 31, 2003 $ 2.00 0.04 0.02 0.06 (0.04)
Period Ended May 31, 2002 (h) $ 2.00 0.01 -- 0.01 (0.01)
T Shares
Period Ended March 31, 2005*** $ 2.00 0.03 (0.01) 0.02 (0.03)
Year Ended May 31, 2004 $ 2.01 0.03(a) (0.01) (a) 0.02 (0.03)
Period Ended May 31, 2003 (i) $ 2.02 0.02 (0.01) 0.01 (0.02)
CLASSIC INSTITUTIONAL TOTAL RETURN BOND FUND
Institutional Shares
Period Ended March 31, 2005*** $ 9.81 0.31 0.16 0.47 (0.31)
Period Ended May 31, 2004 (j) $10.00 0.19(a) (0.18) (a) 0.01 (0.20)
T Shares
Period Ended March 31, 2005*** $ 9.81 0.30(a) 0.17(a) 0.47 (0.30)
Period Ended May 31, 2004 (k) $10.20 0.11(a) (0.38) (a) (0.27) (0.12)
CLASSIC INSTITUTIONAL U.S. GOVERNMENT SECURITIES SUPER SHORT INCOME PLUS FUND
Institutional Shares
Period Ended March 31, 2005*** $ 2.00 0.04 (0.01) 0.03 (0.04)
Year Ended May 31, 2004 $ 2.01 0.03(a) (0.01) (a) 0.02 (0.03)
Year Ended May 31, 2003 $ 2.00 0.04 0.01 0.05 (0.04)
Period Ended May 31, 2002 (l) $ 2.00 0.01 -- 0.01 (0.01)
L Shares
Period Ended March 31, 2005*** $ 9.93 0.14(a) (0.01) (a) 0.13 (0.16)
Year Ended May 31, 2004 $10.01 0.10(a) (0.05) (a) 0.05 (0.13)
Period Ended May 31, 2003 (m) $10.00 0.02 (0.01) 0.03 (0.02)
SEIX INSTITUTIONAL HIGH YIELD FUND
Institutional Shares
Period Ended March 31, 2005 $11.42 0.29 (0.35) (0.06) (0.29)
Year Ended October 31, 2004** $11.09 0.72 0.35 1.07 (0.72)
Year Ended October 31, 2003 $10.17 0.68 0.92 1.60 (0.68)
Year Ended October 31, 2002 $10.40 0.63 (0.20) 0.43 (0.63)
Period Ended October 31,
2001 (n) $10.00 0.64 0.36 1.00 (0.60)
T Shares
Period Ended March 31, 2005 $11.42 0.28 (0.35) (0.07) (0.28)
Period Ended October 31,
2004** (b) $11.32 0.04 0.10 0.14 (0.04)
L Shares
Period Ended March 31, 2005 $11.42 0.26 (0.36) (0.10) (0.26)
Period Ended October 31,
2004** (b) $11.32 0.04 0.10 0.14 (0.04)
A Shares
Period Ended March 31, 2005 $11.18 0.28 (0.35) (0.07) (0.28)
Year Ended October 31, 2004** $10.75 0.56 0.45 1.01 (0.56)
Year Ended October 31, 2003 $ 9.78 0.68 0.82 1.50 (0.53)
Period Ended October 31,
2002 (o) $10.00 0.54 (0.22) 0.32 (0.51)
<Caption>
Distributions Total
from Realized Dividends and
Capital Gains Distributions
------------- -------------
CLASSIC INSTITUTIONAL SHORT-TERM BOND FUND
Institutional Shares
Period Ended March 31, 2005*** (0.02) (0.22)
Year Ended May 31, 2004 (0.07) (0.26)
Year Ended May 31, 2003 (0.15) (0.39)
Period Ended May 31, 2002 (g) -- (0.01)
CLASSIC INSTITUTIONAL SUPER SHORT INCOME PLUS FUND
Institutional Shares
Period Ended March 31, 2005*** -- (0.03)
Year Ended May 31, 2004 -- (0.03)
Year Ended May 31, 2003 --* (0.04)
Period Ended May 31, 2002 (h) -- (0.01)
T Shares
Period Ended March 31, 2005*** -- (0.03)
Year Ended May 31, 2004 -- (0.03)
Period Ended May 31, 2003 (i) --* (0.02)
CLASSIC INSTITUTIONAL TOTAL RETURN BOND FUND
Institutional Shares
Period Ended March 31, 2005*** -- (0.31)
Period Ended May 31, 2004 (j) -- (0.20)
T Shares
Period Ended March 31, 2005*** -- (0.30)
Period Ended May 31, 2004 (k) -- (0.12)
CLASSIC INSTITUTIONAL U.S. GOVERNMENT SECURITIES SUPER SHORT INCOME PLUS FUND
Institutional Shares
Period Ended March 31, 2005*** -- (0.04)
Year Ended May 31, 2004 -- (0.03)
Year Ended May 31, 2003 --* (0.04)
Period Ended May 31, 2002 (l) -- (0.01)
L Shares
Period Ended March 31, 2005*** -- (0.16)
Year Ended May 31, 2004 -- (0.13)
Period Ended May 31, 2003 (m) -- (0.02)
SEIX INSTITUTIONAL HIGH YIELD FUND
Institutional Shares
Period Ended March 31, 2005 (0.13) (0.42)
Year Ended October 31, 2004** (0.02) (0.74)
Year Ended October 31, 2003 -- (0.68)
Year Ended October 31, 2002 (0.03) (0.66)
Period Ended October 31,
2001 (n) -- (0.60)
T Shares
Period Ended March 31, 2005 (0.13) (0.41)
Period Ended October 31,
2004** (b) -- (0.04)
L Shares
Period Ended March 31, 2005 (0.13) (0.39)
Period Ended October 31,
2004** (b) -- (0.04)
A Shares
Period Ended March 31, 2005 (0.13) (0.41)
Year Ended October 31, 2004** (0.02) (0.58)
Year Ended October 31, 2003 -- (0.53)
Period Ended October 31,
2002 (o) (0.03) (0.54)
</Table>
83
<Table>
<Caption>
Ratio of
Ratio of Expenses to
Net Assets Net Assets, Ratio of Net Investment Average Net Assets Portfolio
Value, End Total End of Net Expenses to Income to (Excluding Waivers Turnover
of Period Return++ Period (000) Average Net Assets++ Average Net Assets++ and Expense Offset)++ Rate
- ---------- -------- ------------ -------------------- -------------------- --------------------- ---------
$ 9.91 1.05% $ 32,821 0.42% 2.33% 0.97% 70%
$10.02 0.48% $ 35,609 0.50% 1.90% 1.00% 70%
$10.24 6.08% $ 20,777 0.52% 2.32% 1.02% 146%
$10.03 0.41% $ 16,176 0.57% 2.60% 1.07% --%
$ 2.00 1.22% $ 74,259 0.31% 1.89% 0.81% 44%
$ 2.01 1.01% $ 112,453 0.31% 1.50% 0.86% 83%
$ 2.02 3.16% $ 146,590 0.31% 1.84% 0.86% 56%
$ 2.00 0.30% $ 33,730 0.36% 2.44% 0.91% 30%
$ 1.99 1.06% $ 138,716 0.51% 1.75% 0.82% 44%
$ 2.00 0.81% $ 137,387 0.51% 1.31% 0.86% 83%
$ 2.01 0.64% $ 69,797 0.57% 1.43% 0.92% 56%
$ 9.97 4.86% $ 57,761 0.58% 3.42% 0.74% 308%
$ 9.81 0.03% $ 15,553 0.56% 3.05% 0.90% 121%
$ 9.98 4.81% $ 6,336 0.72% 3.64% 0.87% 308%
$ 9.81 (2.69)% $ 31,937 0.72% 2.96% 1.03% 121%
$ 1.99 1.36% $ 49,623 0.18% 2.02% 0.71% 42%
$ 2.00 1.01% $ 77,360 0.24% 1.25% 0.77% 109%
$ 2.01 2.80% $ 95,277 0.23% 1.76% 0.76% 87%
$ 2.00 0.32% $ 28,138 0.30% 2.42% 0.83% 34%
$ 9.90 1.32% $ 13,069 0.47% 1.70% 0.88% 42%
$ 9.93 0.47% $ 38,159 0.47% 1.01% 0.94% 109%
$10.01 0.27% $ 23,758 0.47% 0.99% 1.06% 87%
$10.94 (0.53)% $1,391,879 0.51% 6.22% 0.57% 42%
$11.42 9.97% $1,689,327 0.55% 6.48% 0.64% 73%
$11.09 16.10% $1,057,993 0.55% 6.67% 0.67% 108%
$10.17 4.21% $ 82,017 0.55% 6.80% 1.07% 97%
$10.40 10.14% $ 4,641 0.55% 7.33% 3.98% 466%
$10.94 (0.59)% $ 2,779 0.66% 6.09% 0.72% 42%
$11.42 1.22% $ 1,781 0.68% 6.62% 0.72% 73%
$10.93 (0.89)% $ 3,260 1.14% 5.46% 1.54% 42%
$11.42 1.20% $ 1 1.18% 6.29% 1.41% 73%
$10.70 (0.64)% $ 9,706 0.78% 6.12% 0.85% 42%
$11.18 9.73% $ 15,975 0.80% 6.22% 0.88% 73%
$10.75 15.72% $ 14,992 0.90% 6.45% 0.93% 108%
$ 9.78 3.29% $ 9,877 0.89% 6.53% 1.20% 97%
</Table>
See notes to financial highlights and notes to financial statements.
84
FINANCIAL HIGHLIGHTS
STI CLASSIC FUNDS Selected Data For a Share of Beneficial Interest Outstanding
Throughout the
Periods Indicated.
<Table>
<Caption>
Net Asset Net Realized
Value, Net and Unrealized Dividends from Distributions
Beginning of Investment Gains (Losses) Total From Net Investment from Realized
Period Income on Investments Operations Income Capital Gains
------------ ---------- -------------- ---------- -------------- -------------
CLASSIC INSTITUTIONAL CASH MANAGEMENT MONEY MARKET FUND
Institutional Shares
Period Ended March 31,
2005*** $1.00 0.01 -- 0.01 (0.01) --
Year Ended May 31, 2004 $1.00 0.01 -- 0.01 (0.01) --*
Year Ended May 31, 2003 $1.00 0.01 -- 0.01 (0.01) --
Year Ended May 31, 2002 $1.00 0.03 -- 0.03 (0.03) --
Year Ended May 31, 2001 $1.00 0.06 -- 0.06 (0.06) --
Year Ended May 31, 2000 $1.00 0.05 -- 0.05 (0.05) --
CLASSIC INSTITUTIONAL U.S. GOVERNMENT SECURITIES MONEY MARKET FUND
Institutional Shares
Period Ended March 31,
2005*** $1.00 0.01 -- 0.01 (0.01) --
Year Ended May 31, 2004 $1.00 0.01 -- 0.01 (0.01) --
Year Ended May 31, 2003 $1.00 0.01 -- 0.01 (0.01) --
Year Ended May 31, 2002 $1.00 0.03 -- 0.03 (0.03) --
Year Ended May 31, 2001 $1.00 0.06 -- 0.06 (0.06) --
Year Ended May 31, 2000 $1.00 0.05 -- 0.05 (0.05) --
CLASSIC INSTITUTIONAL U.S. TREASURY SECURITIES MONEY MARKET FUND
Institutional Shares
Period Ended March 31,
2005*** $1.00 0.01 -- 0.01 (0.01) --
Year Ended May 31, 2004 $1.00 0.01 -- 0.01 (0.01) --*
Year Ended May 31, 2003 $1.00 0.01 -- 0.01 (0.01) --*
Year Ended May 31, 2002 $1.00 0.02 -- 0.02 (0.02) --
Year Ended May 31, 2001 $1.00 0.06 -- 0.06 (0.06) --
Year Ended May 31, 2000 $1.00 0.05 -- 0.05 (0.05) --
Corporate Trust Shares
Period Ended March 31,
2005*** $1.00 0.01 -- 0.01 (0.01) --
Year Ended May 31, 2004 $1.00 0.01 -- 0.01 (0.01) --*
Year Ended May 31, 2003 $1.00 0.01 -- 0.01 (0.01) --*
Year Ended May 31, 2002 $1.00 0.02 -- 0.02 (0.02) --
Year Ended May 31, 2001 $1.00 0.05 -- 0.05 (0.05) --
Period Ended May 31,
2000(a) $1.00 0.05 -- 0.05 (0.05) --
</Table>
85
<Table>
<Caption>
Ratio of
Ratio of Net Expenses to
Total Net Assets Net Assets, Ratio of Investment Income Average Net Assets
Dividends and Value, End Total End of Net Expenses to to Average (Excluding Waivers
Distributions of Period Return+ Period (000) Average Net Assets++ Net Assets++ and Expense Offset)++
- ------------- ---------- ------- ------------ -------------------- ----------------- ---------------------
(0.01) $1.00 1.43% $2,591,527 0.19% 1.71% 0.26%
(0.01) $1.00 0.86% $2,368,849 0.25% 0.86% 0.29%
(0.01) $1.00 1.46% $2,985,750 0.25% 1.45% 0.29%
(0.03) $1.00 2.68% $3,409,606 0.25% 2.61% 0.29%
(0.06) $1.00 6.13% $3,229,400 0.25% 5.91% 0.30%
(0.05) $1.00 5.56% $2,311,685 0.25% 5.42% 0.30%
(0.01) $1.00 1.36% $ 894,653 0.25% 1.63% 0.26%
(0.01) $1.00 0.82% $ 858,260 0.27% 0.82% 0.29%
(0.01) $1.00 1.40% $1,040,066 0.26% 1.39% 0.29%
(0.03) $1.00 2.61% $1,025,714 0.27% 2.49% 0.30%
(0.06) $1.00 5.98% $ 896,189 0.26% 5.72% 0.29%
(0.05) $1.00 5.39% $ 650,626 0.25% 5.27% 0.29%
(0.01) $1.00 1.31% $ 697,095 0.25% 1.62% 0.26%
(0.01) $1.00 0.77% $ 420,948 0.26% 0.71% 0.29%
(0.01) $1.00 1.30% $ 653,340 0.26% 1.23% 0.29%
(0.02) $1.00 2.28% $ 551,599 0.26% 2.25% 0.30%
(0.06) $1.00 5.74% $ 580,227 0.27% 5.44% 0.30%
(0.05) $1.00 5.25% $ 329,725 0.25% 5.17% 0.31%
(0.01) $1.00 1.14% $1,825,373 0.44% 1.38% 0.45%
(0.01) $1.00 0.57% $1,378,551 0.46% 0.51% 0.49%
(0.01) $1.00 1.10% $1,298,910 0.46% 1.05% 0.49%
(0.02) $1.00 2.08% $1,805,066 0.46% 2.11% 0.50%
(0.05) $1.00 5.53% $1,303,630 0.46% 5.38% 0.50%
(0.05) $1.00 5.02% $1,138,541 0.45% 4.93% 0.49%
</Table>
See notes to financial highlights and notes to financial statements.
86
NOTES TO FINANCIAL HIGHLIGHTS
+ Total return excludes sales charge. Not annualized for periods less than one
year.
++ Annualized for periods less than one year.
(a) Per share data calculated using average shares method.
(b) Commenced operations on October 11, 2004.
(c) Commenced operations on January 25, 2002.
(d) Commenced operations on October 27, 2003.
(e) Commenced operations on November 13, 2003.
(f) Commenced operations on October 25, 2002.
(g) Commenced operations on May 14, 2002.
(h) Commenced operations on April 15, 2002.
(i) Commenced operations on October 3, 2002.
(j) Commenced operations on October 15, 2003.
(k) Commenced operations on January 14, 2004.
(l) Commenced operations on April 11, 2002.
(m) Commenced operations on April 16, 2003.
(n) Commenced operations on December 29, 2000.
(o) Commenced operations on December 21, 2001.
(p) Amounts are not meaningful due to the short period of operations.
(q) Commenced operations on June 3, 1999.
* Amount less than $0.005.
** Effective November 1, 2003, these Funds adopted a change in the amortization
and accretion methodology on fixed income securities. (See Note 3.) The
cumulative effect of this change in methodology was immaterial to all Funds
except for the Seix Institutional High Yield Fund as noted below:
<Table>
<Caption>
CHANGE TO RATIO OF NET INVESTMENT
CHANGE TO NET INCOME TO AVERAGE NET ASSETS
CHANGE TO REALIZED AND -------------------------------------------------
NET INVESTMENT UNREALIZED GAINS INSTITUTIONAL
INCOME PER SHARE (LOSSES) PER SHARE SHARES T SHARES L SHARES A SHARES
---------------- ------------------ ------------- -------- -------- --------
Seix Institutional High
Yield Fund................ 0.01 (0.01) 0.06% 1.06% 0.84% 0.05%
</Table>
*** Effective June 1, 2004, these Funds adopted a change in the amortization and
accretion methodology on fixed income securities. (See Note 3.) The
cumulative effect of this change in methodology was immaterial to all Funds
except for the Funds noted below:
<Table>
<Caption>
CHANGE TO RATIO OF NET INVESTMENT
CHANGE TO NET INCOME TO AVERAGE NET ASSETS
CHANGE TO REALIZED AND -------------------------------------
NET INVESTMENT UNREALIZED GAINS INSTITUTIONAL
INCOME PER SHARE (LOSSES) PER SHARE SHARES T SHARES L SHARES
---------------- ------------------ ------------- -------- --------
Classic Institutional High Quality Bond
Fund.................................. 0.01 (0.01) 0.11% 0.02%
Classic Institutional Total Return Bond
Fund.................................. 0.01 (0.01) 0.20% 0.03%
Classic Institutional U.S. Government
Super Short Income Plus Fund.......... 0.01 (0.01) 0.24% 0.04%
</Table>
87
NOTES TO FINANCIAL STATEMENTS
STI CLASSIC FUNDS March 31, 2005
1. Organization
The STI Classic Funds (the "Trust") was organized as a Massachusetts business
trust under a Declaration of Trust dated January 15, 1992. The Trust is
registered under the Investment Company Act of 1940, as amended, as an open-end
management investment company offering 49 funds as of March 31, 2005. The
financial statements presented herein are those of the Classic Institutional
Core Bond Fund, Classic Institutional High Quality Bond Fund, the Classic
Institutional Intermediate Bond Fund, the Classic Institutional Limited Duration
Fund, the Classic Institutional Short-Term Bond Fund, the Classic Institutional
Super Short Income Plus Fund, the Classic Institutional Total Return Bond Fund,
the Classic Institutional U.S. Government Securities Super Short Income Plus
Fund, the Seix Institutional High Yield Fund, the Classic Institutional Cash
Management Money Market Fund, the Classic Institutional U.S. Government
Securities Money Market Fund and the Classic Institutional U.S. Treasury
Securities Money Market Fund (each a "Fund" and collectively the "Funds"). The
Classic Institutional Core Bond Fund, Classic Institutional Intermediate Bond
Fund, and Seix Institutional High Yield Fund may offer Institutional Shares, T
Shares, L Shares and A Shares. The Classic Institutional High Quality Bond Fund,
Classic Institutional Super Short Income Plus Fund, Classic Institutional Total
Return Bond Fund may offer Institutional Shares and T Shares. The Classic
Institutional Limited Duration Fund may offer Institutional Shares, T Shares and
L Shares. The Classic Institutional Short-Term Bond Fund, Classic Institutional
Cash Management Money Market Fund and Classic Institutional U.S. Government
Securities Money Market Fund may offer Institutional Shares only. The Classic
Institutional U.S. Government Securities Super Short Income Plus Fund may offer
Institutional Shares and L Shares and the Classic Institutional U.S. Treasury
Securities Money Market Fund may offer Institutional Shares and Corporate Trust
Shares. The Trust is authorized to issue an unlimited number of shares without
par value. Shareholders have no preemptive rights. The financial statements of
the remaining funds are presented separately. The assets of each Fund are
segregated, and a shareholder's interest is limited to the Fund in which shares
are held. The Funds' prospectus provides a description of the Funds' investment
objectives, policies and strategies.
At a regular meeting of the Board of Trustees (the "Board") on February 15,
2005, the Board voted to change the fiscal and tax year ends of the Classic
Institutional Core Bond Fund, Classic Institutional Intermediate Bond Fund,
Classic Institutional Limited Duration Fund and Seix Institutional High Yield
Fund from October 31 to March 31, and from May 31 to March 31 for the remaining
Funds.
Under the Trust's organizational documents, its officers and trustees are
indemnified against certain liabilities arising out of the performance of their
duties to the Trust. In addition, in the normal course of business, the Trust
enters into contracts with their vendors and others that provide for general
indemnifications. The Trust's maximum exposure under these arrangements is
unknown, as this would involve future claims that may be made against the Trust.
However, based on experience, the Trust expects that risk of loss to be remote.
2. Reorganization
The Trust entered into an agreement and plan of reorganization with the Seix
Funds, Inc. (the "Seix Funds") pursuant to which all of the assets, subject to
stated liabilities, of each portfolio of the Seix Funds were transferred to a
corresponding series of the Trust in exchange for a corresponding Class of
shares of that series. The reorganization, which qualified as a tax-free
exchange for Federal income tax purposes, was completed on October 11, 2004,
following approval by shareholders of the Seix Funds at a special shareholder
meeting on September 23, 2004. The following is a summary of shares outstanding,
net assets and net asset value per share issued immediately before and after the
reorganization:
88
NOTES TO FINANCIAL STATEMENTS (continued)
STI CLASSIC FUNDS March 31, 2005
<Table>
<Caption>
Before Reorganization After
--------------------------- Reorganization
Institutional -----------------
Seix Core Core Bond Institutional
Bond Fund Fund Core Bond Fund(c)
----------- ------------- -----------------
Shares............... 5,493,647 -- 5,493,647
Net Assets........... $56,294,611 $-- $56,294,611
Net Asset Value:
Institutional
Shares............. -- $ 10.25
I Shares(a).......... $ 10.25 --
A Shares............. -- $ 10.55
P Shares(b).......... $ 10.55 --
</Table>
- ------------
(a) Institutional Shares were issued in exchange for I Shares in conjunction
with the reorganization.
(b) A Shares were issued in exchange for P Shares in conjunction with the
reorganization.
(c) The STI Classic Institutional Core Bond Fund retained the financial history
of the Seix Core Bond Fund.
<Table>
<Caption>
After
Before Reorganization Reorganization
---------------------------- --------------
Seix Institutional Institutional
Intermediate Intermediate Intermediate
Bond Fund Bond Fund Bond Fund(b)
------------ ------------- --------------
Shares................. 3,422,155 -- 3,422,155
Net Assets............. $35,313,376 $-- $35,313,376
Net Asset Value:
Institutional Shares... -- $ 10.32
I Shares(a)............ $ 10.32 --
</Table>
- ------------
(a) Institutional Shares were issued in exchange for I Shares in conjunction
with the reorganization.
(b) The STI Classic Institutional Intermediate Bond Fund retained the financial
history of the Seix Intermediate Bond Fund.
<Table>
<Caption>
After
Before Reorganization Reorganization
------------------------------ --------------
Seix Seix
Seix High Institutional Institutional
Yield High Yield High Yield
Fund Fund Fund(c)
-------------- ------------- --------------
Shares............... 142,460,313 -- 142,460,313
Net Assets........... $1,612,034,091 $-- $1,612,034,091
Net Asset Value:
Institutional
Shares............. -- $ 11.32
I Shares(a).......... $ 11.32 --
A Shares............. -- $ 11.08
P Shares(b).......... $ 11.08 --
</Table>
- ------------
(a) Institutional Shares were issued in exchange for I Shares in conjunction
with the reorganization.
(b) A Shares were issued in exchange for P Shares in conjunction with the
reorganization.
(c) The Seix Institutional High Yield Fund retained the financial history of the
Seix High Yield Fund.
<Table>
<Caption>
After
Before Reorganization Reorganization
---------------------------- --------------
Seix Institutional Institutional
Limited Limited Limited
Duration Duration Duration
Fund Fund Fund(b)
------------ ------------- --------------
Shares................. 13,000,589 -- 13,000,589
Net Assets............. $129,705,443 $-- $129,705,443
Net Asset Value:
Institutional Shares... -- $ 9.98
I Shares(a)............ $ 9.98 --
</Table>
- ------------
(a) Institutional Shares were issued in exchange for I Shares in conjunction
with the reorganization.
(b) The STI Classic Institutional Limited Duration Fund retained the financial
history of the Seix Limited Duration Fund.
3. Significant Accounting Policies
The following is a summary of significant accounting policies followed by the
Trust in the preparation of its financial statements. These policies are in
conformity with accounting principles generally accepted in the United States of
America ("GAAP"). The preparation of financial statements in accordance with
GAAP requires management to make estimates and assumptions that affect the
reported amounts of assets and liabilities and disclosure of contingent assets
and liabilities at the date of the financial statements and the reported amounts
of income and expense during the reporting period. The actual results could
differ from these estimates.
Security Valuation -- Debt securities are priced based upon valuations
provided by independent, third-party pricing agents, if available. Such
values generally reflect the last reported sales price if the security is
actively traded. The third-party pricing agents may also value debt
securities at an evaluated bid price by employing methodologies that
utilize actual market transactions, broker-supplied valuations, or other
methodologies designed to identify the market value for such securities.
Debt obligations with remaining maturities of sixty days or less may be
valued at their amortized cost, which approximates market value. If a
security price cannot be obtained from an independent, third-party pricing
agent, the Funds' administrator shall seek to obtain a bid price from at
least one independent broker.
Securities for which market prices are not "readily available" are valued
in accordance with Fair Value Procedures established by the Board. The
Funds' Fair Value Procedures will be
89
performed and monitored by a Fair Value Committee (the "Committee")
designated by the Board. Some of the more common reasons that may
necessitate that a security be valued using Fair Value Procedures include,
but are not limited to: the security's trading has been halted or
suspended; the security has been de-listed from a national exchange; the
security's primary trading market is temporarily closed at a time when
under normal conditions it would be open; or the security's primary pricing
source is not able or willing to provide a price. When a security is valued
in accordance with the Fair Value Procedures, the Committee will determine
the value after taking into consideration relevant information reasonably
available to the Committee.
Securities Purchased on a When-Issued Basis -- Delivery and payment for
securities that have been purchased by a Fund on a forward commitment or
when-issued basis can take place up to a month or more after the
transaction date. During this period, such securities are subject to market
fluctuations. The purchase of securities on a when-issued basis may
increase the volatility of a Fund's net asset value if the Fund makes such
investments while remaining substantially fully invested. A Fund records
when-issued securities on trade date and maintains security positions such
that sufficient liquid assets will be available to make payment for the
securities purchased.
Security Transactions and Investment Income -- Security transactions are
accounted for no later than one business day after trade date. However, for
financial reporting purposes, security transactions are reported on trade
date. Interest income is recognized on an accrual basis. Costs used in
determining net realized gains and losses on the sales of investment
securities are those of the specific securities sold adjusted for the
accretion or amortization of purchase discounts or premiums during the
respective holding period.
Effective November 1, 2003, the following Funds changed their amortization
and accretion methodology on premiums and discounts on fixed income
securities in order to conform more closely to Internal Revenue Code
requirements. The cumulative effect of this accounting change had no impact
on total net assets of each Fund, but resulted in the following reclasses
(in thousands):
<Table>
<Caption>
Change in
Change in Unrealized
Interest Appreciation/
Income (Depreciation)
--------- --------------
Classic Institutional Core
Bond Fund.................. $ (2) $ 2
Classic Institutional
Intermediate Bond Fund..... (1) 1
Seix Institutional High Yield
Fund....................... 815 (815)
Classic Institutional Limited
Duration Fund.............. 1 (1)
</Table>
Effective June 1, 2004, the following Funds changed their amortization and
accretion methodology on premiums and discounts on fixed income securities
in order to conform more closely to Internal Revenue Code requirements. The
cumulative effect of the accounting change had no impact on total net
assets of each Fund, but resulted in the following reclasses (in
thousands):
<Table>
<Caption>
Change in
Change in Unrealized
Interest Appreciation/
Income (Depreciation)
--------- --------------
Classic Institutional High
Quality Bond Fund.......... $ 61 $ (61)
Classic Institutional
Short-Term Bond Fund....... 12 (12)
Classic Institutional Super
Short Income Plus Fund..... 216 (216)
Classic Institutional Total
Return Bond Fund........... 61 (61)
Classic Institutional U.S.
Government Securities Super
Short Income Plus Fund..... 158 (158)
Classic Institutional Cash
Management Money Market
Fund....................... -- --
Classic Institutional U.S.
Government Securities Money
Market Fund................ -- --
Classic Institutional U.S.
Treasury Securities Money
Market Fund................ -- --
</Table>
The statement of changes in net assets and financial highlights for prior
periods have not been restated to reflect this change in accounting
methodology.
90
NOTES TO FINANCIAL STATEMENTS (continued)
STI CLASSIC FUNDS March 31, 2005
Repurchase Agreements -- The Funds may purchase instruments from financial
institutions, such as banks and broker-dealers, subject to the seller's
agreement to repurchase them at an agreed upon time and price ("repurchase
agreement"). A third party custodian bank takes possession of the
underlying securities ("collateral") of a repurchase agreement, the value
of which exceeds the principal amount of the repurchase transaction,
including accrued interest. In the event of default on the obligation to
repurchase, each Fund has the right to liquidate the collateral and apply
the proceeds in satisfaction of the obligation. In the event of default or
bankruptcy by the counterparty to the agreement, realization and/or
retention of the collateral or proceeds may be subject to legal
proceedings.
TBA Purchase Commitments -- The Funds may enter into "TBA" (To Be
Announced) purchase commitments to purchase securities for a fixed price at
a future date beyond customary settlement time. TBA purchase commitments
may be considered securities in themselves, and involve a risk of loss if
the value of the security to be purchased declines prior to settlement
date. Unsettled TBA purchase commitments are valued at the current market
value of the underlying securities, generally according to the procedures
described under "Security Valuation."
Mortgage Dollar Rolls -- The Funds may enter into mortgage dollar rolls
(principally using TBA's) in which a Fund sells mortgage securities for
delivery in the current month and simultaneously contracts to repurchase
substantially similar securities at an agreed-upon price on a fixed date.
The Funds account for such dollar rolls under the purchases and sales
method and receive compensation as consideration for entering into the
commitment to repurchase. The Funds must maintain liquid securities having
a value not less than the repurchase price (including accrued interest) for
such dollar rolls. The market value of the securities that the Funds are
required to purchase may decline below the agreed upon repurchase price of
those securities.
The counterparty receives all principal and interest payments, including
pre-payments, made in respect of a security subject to such a contract
while it is with the holder. Mortgage dollar rolls may be renewed with a
new purchase and repurchase price and a cash settlement date without
physical delivery of the securities subject to the contract. The Funds
engage in dollar rolls for the purpose of enhancing its yield, principally
by earning a negotiated fee. As of March 31, 2005, the Classic
Institutional Core Bond Fund and Classic Institutional Total Return Bond
Fund had open mortgage dollar rolls.
Redemption Fees -- The Funds may charge a redemption fee of up to 2% of
redemption proceeds, which will automatically be paid to the Fund. There
were no redemption fees for the period ended March 31, 2005.
Expenses -- Expenses that are directly related to a specific Fund are
charged to that Fund. Class specific expenses, such as distribution fees,
are borne by that class. Other operating expenses of the Trust are
pro-rated to the Funds on the basis of relative net assets or another
appropriate basis.
Classes -- Income, non-class specific expenses and realized/unrealized
gains and losses are allocated to the respective classes on the basis of
the relative daily net assets.
Offering Costs -- Offering costs of the Classic Institutional High Quality
Bond Fund and Classic Institutional Total Return Bond Fund, which commenced
operations on October 27, 2003 and October 15, 2003, respectively, include
costs of printing initial prospectuses and registration fees, are being
amortized to expenses over the first 12 months of operations.
Dividends and Distributions to Shareholders -- Dividends and distributions
to shareholders are recorded on the ex-dividend date. Dividends from net
investment income of each of the Funds are declared daily and paid monthly.
Any net realized capital gains on sales of securities are distributed to
shareholders at least annually. However, to the extent that net realized
capital gains can be offset by capital loss carryovers, such gains will not
be distributed.
91
The amounts of dividends from net investment income and of distributions
from net realized gains are determined in accordance with federal income
tax regulations, which may differ from GAAP. These "book/tax" differences
are either considered temporary or permanent in nature. To the extent these
differences are permanent in nature (i.e. paydown reclasses), such amounts
are reclassified within the composition of net assets based on their
federal tax-basis treatment; temporary differences do not require
reclassification.
Compensating Balances -- If a Fund has a cash overdraft in excess of
$100,000 it is required to leave 110% in compensating balance with SunTrust
Bank (the "Custodian"), a wholly-owned subsidiary of SunTrust Banks, Inc.,
on the following day. If a Fund has a positive cash balance in excess of
$100,000 it is allowed to overdraw 90% of the balance with the Custodian on
the following business day.
4. Agreements and Other Transactions with Affiliates
Investment Advisory Agreement -- The Trust and Trusco Capital Management,
Inc. (the "Investment Adviser"), a wholly owned subsidiary of SunTrust
Banks, Inc., have entered into advisory agreements.
Under terms of the agreements, the Funds are charged the following annual
fees which are computed daily and paid monthly based upon average daily net
assets:
<Table>
<Caption>
Maximum Net Net
Annual Fees Fees
Advisory Paid Paid
Fee 2005 2004
-------- ---- ----
Classic Institutional Core Bond
Fund.......................... 0.25% 0.25% 0.11%
Classic Institutional High
Quality Bond Fund............. 0.50 0.39 0.40
Classic Institutional
Intermediate Bond Fund........ 0.25 0.25 0.10
Classic Institutional Limited
Duration Fund................. 0.10 0.10 0.05
Classic Institutional Short-Term
Bond Fund..................... 0.60 0.35 0.35
Classic Institutional Super
Short Income Plus Fund........ 0.50 0.20 0.20
Classic Institutional Total
Return Bond Fund.............. 0.45 0.35 0.35
Classic Institutional U.S.
Government Securities Super
Short Income Plus Fund........ 0.40 0.12 0.12
Seix Institutional High Yield
Fund.......................... 0.50 0.44 0.41
Classic Institutional Cash
Management Money Market
Fund.......................... 0.20 0.13 0.17
Classic Institutional U.S.
Government Securities Money
Market Fund................... 0.20 0.19 0.19
Classic Institutional U.S.
Treasury Securities Money
Market Fund................... 0.20 0.19 0.19
</Table>
The Investment Adviser has voluntarily agreed to waive all or a portion of
its fees. Fee waivers are voluntary and may be terminated at any time.
Administration, Fund Accounting and Transfer Agency Agreement -- The Trust
and BISYS Fund Services Ohio, Inc. (the "Administrator") are parties to a
Master Services Agreement, under which the Administrator provides
administrative, fund accounting and transfer agent services for an annual
fee (expressed as a percentage of the combined average daily net assets of
the Trust and STI Classic Variable Trust) of: 0.0275% up to $25 billion,
0.0225% on the next $5 billion and 0.0175% for over $30 billion, plus an
additional class fee of $2,500 per class annum, applicable to each
additional class of shares over 145 classes of shares.
Prior to July 26, 2004, SEI Investments Global Funds Services ("SEI")
served as the Administrator (for all Funds except for the Classic
Institutional Core Bond Fund, Classic Institutional Intermediate Bond Fund,
Classic Institutional Limited Duration Fund and Seix Institutional High
Yield Fund) and provided administrative
92
NOTES TO FINANCIAL STATEMENTS (continued)
STI CLASSIC FUNDS March 31, 2005
services for an annual fee (expressed as a percentage of the combined
average daily net assets of the Trust and STI Classic Variable Trust) of:
0.12% up to $1 billion, 0.09% on the next $4 billion, 0.07% on the next $3
billion, 0.065% on the next $2 billion and 0.06% for over $10 billion. SEI
had voluntarily agreed to waive all or a portion of their fees and to
reimburse Fund expenses. The Administration Fees waived on the Statements
of Operations for the period ended March 31, 2005, were waived by SEI. For
the period of June 1, 2004 to July 23, 2004, SEI received fees totaling
$2,333,093 from the Trust for its services.
Per the executed Master Services Agreement, BISYS Fund Services Ohio, Inc.
has agreed to pay a total of $325,000 per annum towards the insurance
premiums payable annually by the Trust and the STI Classic Variable Trust.
$300,000 will be paid towards the premium for the Directors and Officers
Liability/Errors and Omissions Insurance Policy, and $25,000 will be paid
towards the premium for the Fidelity Bond Policy.
Distribution Agreement -- The Trust and BISYS Fund Services Limited
Partnership (the "Distributor") are parties to a Distribution Agreement.
The Distributor will receive no fees for its distribution services under
this agreement for the Institutional, Corporate Trust, and T Shares of any
Fund. The Distributor receives compensation with respect to the L Shares
and A Shares. These plans are in accordance with Rule 12b-1 under the 1940
Act. Under the Plans, the Funds will pay fees of 0.75% of the average daily
net assets of the L Shares, computed daily and paid monthly, except the L
Shares of the Classic Institutional Limited Duration Fund and Classic
Institutional U.S. Government Securities Super Short Income Plus Fund, and
a rate of 0.25% of the average daily net assets of A Shares, computed daily
and paid monthly. In addition, L Shares are subject to a service fee of
0.25% of the average daily net assets of the L Shares computed daily and
paid monthly.
Annualized fees received by the Distributor are outlined below:
<Table>
<Caption>
Maximum
L Share Net Net Maximum Net Net
Distribution Fees Fees A Share Fees Fees
and Paid Paid Distribution Paid Paid
Service Fee 2005 2004 Fee 2005 2004
------------ ---- ---- ------------ ---- ----
Classic Institutional Core Bond Fund........................ 1.00% 0.63% 0.63% 0.25% 0.25% 0.25%
Classic Institutional Intermediate Bond Fund................ 1.00 0.61 0.61 0.25 0.25 0.25
Classic Institutional Limited Duration Fund................. 0.25 0.25 0.25 N/A N/A N/A
Classic Institutional U.S. Government Securities Super Short
Income Plus Fund.......................................... 0.40 0.27 0.21 N/A N/A N/A
Seix Institutional High Yield Fund.......................... 1.00 0.65 0.65 0.25 0.25 0.25
</Table>
The Distributor has voluntarily agreed to waive all or a portion of its
fees. Fee waivers are voluntary and may be terminated at any time.
Prior to July 26, 2004, SEI Investments Distribution Co. served as the
distributor (for all Funds except for the Classic Institutional Core Bond
Fund, Classic Institutional Intermediate Bond Fund, Classic Institutional
Limited Duration Fund and Seix Institutional High Yield Fund). SEI
Investments Distribution Co. had voluntarily agreed to waive all or a
portion of its fees and to reimburse fund expenses.
Shareholder Servicing Agreement -- The Classic Institutional U.S. Treasury
Securities Money Market Fund has adopted a Shareholder Services Plan for
the Corporate Trust Shares. The Fund pays SunTrust Bank ("SunTrust") a
monthly shareholder services fee at an annual rate of up to 0.25% of the
average daily net assets of the Fund's Corporate Trust Shares, computed
daily and paid monthly, which may be used by SunTrust to provide
compensation to service providers that have agreed to provide shareholder
support services for their customers who own Corporate Trust Shares of the
Fund. The Fund is currently paying SunTrust an annual rate of 0.20%.
The Classic Institutional Core Bond Fund, Classic Institutional High
Quality Bond Fund, Classic Institutional Intermediate Bond Fund, Classic
Institutional Limited Duration Fund, Classic Institutional Short-Term Bond
Fund,
93
Classic Institutional Super Short Income Plus Fund, Classic Institutional
Total Return Bond Fund, and Classic Institutional U.S. Government
Securities Super Short Income Plus Fund have adopted a Shareholder Services
Plan whereby each Fund pays SunTrust a monthly shareholder services fee
based upon the respective average daily net assets of each class which is
computed daily and paid monthly, as outlined below. This fee may be used by
SunTrust to provide compensation to service providers that have agreed to
provide shareholder support services for their customers who own shares of
the Fund. SunTrust has voluntarily agreed to waive all or a portion of its
fees. These fee waivers are voluntary and may be terminated at any time.
Annualized fees received by SunTrust are outlined below:
<Table>
<Caption>
Maximum Maximum
Annual Annual
Shareholder Shareholder Net Fees
Service Fee Net Fees Paid 2005 Net Fees Paid 2004 Service Fee Paid 2005
(Institutional Shares) (Institutional Shares) (Institutional Shares) (T Shares) (T Shares)
---------------------- ---------------------- ---------------------- ----------- ----------
Classic Institutional Core
Bond Fund................... 0.25% --% --% 0.40% 0.09%
Classic Institutional High
Quality Bond Fund........... 0.25 0.19 0.09 0.40 0.36
Classic Institutional
Intermediate Bond Fund...... 0.25 -- -- 0.40 0.20
Classic Institutional Limited
Duration Fund............... 0.25 -- -- 0.40 0.10
Classic Institutional
Short-Term Bond Fund........ 0.25 -- -- N/A N/A
Classic Institutional Super
Short Income Plus Fund...... 0.25 0.05 -- 0.40 0.24
Classic Institutional Total
Return Bond Fund............ 0.20 0.14 -- 0.40 0.30
Classic Institutional U.S.
Government Securities Super
Short Income Plus Fund...... 0.25 -- -- N/A N/A
Seix Institutional High Yield
Fund........................ 0.25 -- -- 0.40 0.15
<Caption>
Net Fees
Paid 2004
(T Shares)
----------
Classic Institutional Core
Bond Fund................... 0.25%
Classic Institutional High
Quality Bond Fund........... 0.29
Classic Institutional
Intermediate Bond Fund...... 0.20
Classic Institutional Limited
Duration Fund............... 0.10
Classic Institutional
Short-Term Bond Fund........ N/A
Classic Institutional Super
Short Income Plus Fund...... 0.20
Classic Institutional Total
Return Bond Fund............ 0.20
Classic Institutional U.S.
Government Securities Super
Short Income Plus Fund...... N/A
Seix Institutional High Yield
Fund........................ 0.15
</Table>
Transfer Agency Agreements -- Prior to July 26, 2004, Federated Services
Company provided transfer agency services for all Funds except for the
Classic Institutional Core Bond Fund, Classic Institutional Intermediate
Bond Fund, Classic Institutional Limited Duration Fund and Seix
Institutional High Yield Fund.
The Trust and SunTrust Securities, Inc. ("STS"), a wholly-owned subsidiary
of SunTrust Banks, Inc., are parties to an agreement under which STS
provides certain transfer agency account activity processing and servicing.
The transfer agent shareholder service fees are based upon a monthly per
account charge for the total shareholder accounts at the Trust's transfer
agent. These fees are presented on the Statements of Operations as Transfer
Agent Shareholder Servicing Fees.
Prior to October 11, 2004, Investors Bank & Trust Company served as the
predecessor funds' administrator, custodian and transfer agent. Quasar
Distributors, LLC served as the predecessor funds' distributor. All
distribution fees for Class A Shares prior to October 11, 2004 were paid to
Quasar Distributors, LLC.
Custodian Agreement -- SunTrust Bank acts as custodian for all of the
Funds. The custodian is paid on the basis of net assets and transaction
costs of the Funds. The custodian plays no role in determining the
investment policies of the Trust or which securities are to be purchased or
sold in the Funds.
Other -- Certain officers of the Trust are also officers of the Adviser,
Administrator and/or the Distributor. Such officers (with the exception of
the Chief Compliance Officer) receive no
94
NOTES TO FINANCIAL STATEMENTS (continued)
STI CLASSIC FUNDS March 31, 2005
fees by the Trust for serving as officers of the Trust. Each of the eight
trustees are compensated $43,000 ($344,000 total) and the Chairman of the
Board receives $50,000 in meeting and retainer fees, plus the reimbursement
for certain expenses incurred. Effective October 5, 2004, Trusco Capital
Management, Inc. began providing an employee to serve as Chief Compliance
Officer for the Trust and provide certain related services, and will
receive a fee for this service of $120,000. In addition, BISYS provides an
employee and staff to serve as an assistant to the Chief Compliance Officer
for the Trust, including providing certain related services, and will
receive a fee for these services of $150,000. Both fees are allocated
across the assets of the Trust and the STI Classic Variable Trust. For the
period ended March 31, 2005, the total related amounts paid by the Trust
were $319,892.
The Trust has entered into an agreement with SunTrust Robinson Humphrey, a
division of SunTrust Capital Markets, Inc. which is a direct non-bank
subsidiary of SunTrust Banks, Inc. to act as an agent in placing repurchase
agreements for the Trust. For the period ended March 31, 2005, the
following Funds paid SunTrust Robinson Humphrey, through a reduction in the
yield, earned by the Funds on those repurchase agreements (in thousands):
<Table>
<Caption>
2005 2004
Fees Fees
---- ----
Classic Institutional Core Bond Fund........... $ -- $ --
Classic Institutional High Quality Bond Fund... 2 1
Classic Institutional Intermediate Bond Fund... 5 --
Classic Institutional Limited Duration Fund.... 1 --
Classic Institutional Super Short Income Plus
Fund......................................... 5 11
Classic Institutional Total Return Bond Fund... 2 --
Classic Institutional U.S. Government
Securities Super Short Income Plus Fund...... 4 7
Seix Institutional High Yield Fund............. 8 --
Classic Institutional Cash Management Money
Market Fund.................................. 94 202
Classic Institutional U.S. Government
Securities Money Market Fund................. 67 134
Classic Institutional U.S. Treasury Securities
Money Market Fund............................ 633 752
</Table>
5. Investment Transactions
The cost of purchases and the proceeds from sales and maturities of securities,
excluding short-term investments and U.S. Government securities, for the period
ended March 31, 2005, were as follows (in thousands):
<Table>
<Caption>
Sales and
Purchases Maturities
--------- ----------
Classic Institutional Core Bond
Fund............................... $ 31,209 $ 13,051
Classic Institutional High Quality
Bond Fund.......................... 148,315 54,913
Classic Institutional Intermediate
Bond Fund.......................... 26,048 18,897
Classic Institutional Limited
Duration Fund...................... 3,618 28,132
Classic Institutional Short-Term Bond
Fund............................... 8,239 10,469
Classic Institutional Super Short
Income Plus Fund................... 59,732 77,599
Classic Institutional Total Return
Bond Fund.......................... 34,652 42,354
Classic Institutional U.S. Government
Securities Super Short Income Plus
Fund............................... 8,275 8,483
Seix Institutional High Yield Fund... 631,088 851,814
</Table>
The cost of purchases and proceeds from sales and maturities of long-term U.S.
Government securities, for the period ended March 31, 2005, were as follows (in
thousands):
<Table>
<Caption>
Sales and
Purchases Maturities
--------- ----------
Classic Institutional Core Bond Fund... $431,406 $212,043
Classic Institutional High Quality Bond
Fund................................. 186,499 229,361
Classic Institutional Intermediate Bond
Fund................................. 40,656 19,121
Classic Institutional Limited Duration
Fund................................. 1,814 103
Classic Institutional Short-Term Bond
Fund................................. 13,695 15,110
Classic Institutional Super Short
Income Plus Fund..................... 23,381 34,058
Classic Institutional Total Return Bond
Fund................................. 127,731 106,627
Classic Institutional U.S. Government
Securities Super Short Income Plus
Fund................................. 18,754 41,506
</Table>
95
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96
NOTES TO FINANCIAL STATEMENTS (continued)
STI CLASSIC FUNDS March 31, 2005
6. Capital Share Transactions
Capital share transactions for the Funds were as follows (in thousands):
<Table>
<Caption>
Classic Institutional Classic Institutional
Classic Institutional High Quality Intermediate
Core Bond Fund Bond Fund Bond Fund
--------------------------------- ---------------------- ---------------------------------
11/01/04- 11/01/03- 11/01/02- 06/01/04- 10/27/03*- 11/01/04- 11/01/03- 11/01/02-
03/31/05 10/31/04 10/31/03 03/31/05 05/31/04 03/31/05 10/31/04 10/31/03
--------- --------- --------- --------- ---------- --------- --------- ---------
Capital Transactions:
Institutional Shares:
Proceeds from Shares Issued..... $140,313 $ 40,140 $ 1,085 $ 30,238 $ 26,414 $13,266 $ 7,192 $ 561
Dividends Reinvested............ 1,000 2,082 1,629 497 147 712 973 1,126
Cost of Shares Redeemed......... (18,633) (19,932) (52,503) (17,507) (674) (613) (1,542) (13,659)
-------- -------- -------- --------- -------- ------- ------- --------
Change in Net Assets From
Institutional Share
Transactions.................. $122,680 $ 22,290 $(49,789) $ 13,228 $ 25,887 $13,365 $ 6,623 $(11,972)
-------- -------- -------- --------- -------- ------- ------- --------
T Shares (1):
Proceeds from Shares Issued..... $125,973 $ 1 $ -- $ 29,454 $116,614 $ 7,295 $ 1 $ --
Dividends Reinvested............ 335 -- -- 263 82 -- -- --
Cost of Shares Redeemed......... (4,379) -- -- (114,559) (5,577) -- -- --
-------- -------- -------- --------- -------- ------- ------- --------
Change in Net Assets From T
Shares Transactions........... $121,929 $ 1 $ -- $(84,842) $111,119 $ 7,295 $ 1 $ --
-------- -------- -------- --------- -------- ------- ------- --------
L Shares (2):
Proceeds from Shares Issued..... $ -- $ 1 $ -- $ -- $ 1 $ --
Dividends Reinvested............ -- -- -- -- -- --
Cost of Shares Redeemed......... -- -- -- -- -- --
Change in Net Assets From
-------- -------- -------- --------- -------- ------- ------- --------
L Shares Transactions........... $ -- $ 1 $ -- $ -- $ 1 $ --
-------- -------- -------- --------- -------- ------- ------- --------
A Shares (3):
Proceeds from Shares Issued..... $ 125 $ 175 $ 201 $ -- $ 1 $ --
Dividends Reinvested............ -- -- -- -- -- --
Cost of Shares Redeemed......... (270) (65) (70) -- -- --
-------- -------- -------- --------- -------- ------- ------- --------
Change in Net Assets From A
Shares Transactions........... $ (145) $ 110 $ 131 $ -- $ 1 $ --
-------- -------- -------- --------- -------- ------- ------- --------
Change in Net Assets from
Capital Transactions.......... $244,464 $ 22,402 $(49,658) $(71,614) $137,006 $20,660 $ 6,626 $(11,972)
======== ======== ======== ========= ======== ======= ======= ========
Share Transactions:
Institutional Shares:
Issued.......................... 13,738 3,935 106 3,038 2,643 1,289 710 55
Reinvested...................... 98 205 159 50 15 69 95 110
Redeemed........................ (1,830) (1,963) (5,072) (1,769) (67) (59) (151) (1,343)
-------- -------- -------- --------- -------- ------- ------- --------
Change in Institutional Share
Transactions.................. 12,006 2,177 (4,807) 1,319 2,591 1,299 654 (1,178)
-------- -------- -------- --------- -------- ------- ------- --------
T Shares (1):
Issued.......................... 12,354 -- -- 2,964 11,601 714 -- --
Reinvested...................... 33 -- -- 26 8 -- -- --
Redeemed........................ (431) -- -- (11,458) (559) -- -- --
-------- -------- -------- --------- -------- ------- ------- --------
Change in T Share
Transactions.................. 11,956 -- -- (8,468) 11,050 714 -- --
-------- -------- -------- --------- -------- ------- ------- --------
L Shares (2):
Issued.......................... -- -- -- -- -- --
Reinvested...................... -- -- -- -- -- --
Redeemed........................ -- -- -- -- -- --
-------- -------- -------- --------- -------- ------- ------- --------
Change in L Share
Transactions.................. -- -- -- -- -- --
-------- -------- -------- --------- -------- ------- ------- --------
A Shares (3):
Issued.......................... 12 17 19 -- -- --
Reinvested...................... -- -- -- -- -- --
Redeemed........................ (25) (7) (7) -- -- --
-------- -------- -------- --------- -------- ------- ------- --------
Change in A Share
Transactions.................. (13) 10 12 -- -- --
-------- -------- -------- --------- -------- ------- ------- --------
Change in Share Transactions.... 23,949 2,187 (4,795) (7,149) 13,641 2,013 654 (1,178)
======== ======== ======== ========= ======== ======= ======= ========
</Table>
97
<Table>
<Caption>
Classic Institutional Classic Institutional Classic Institutional
Limited Duration Short-Term Super Short Income
Fund Bond Fund Plus Fund
--------------------------------- --------------------------------- ---------------------------------
11/01/04- 11/01/03- 11/01/02- 06/01/04- 06/01/03- 06/01/02- 06/01/04- 06/01/03- 06/01/02-
03/31/05 10/31/04 10/31/03 03/31/05 05/31/04 05/31/03 03/31/05 05/31/04 05/31/03
--------- --------- --------- --------- --------- --------- --------- --------- ---------
$ 8,164 $157,998 $261,425 $ 16,552 $24,777 $11,283 $ 33,501 $155,867 $190,846
762 1,533 965 442 401 450 374 493 125
(54,952) (176,747) (128,190) (19,403) (9,722) (7,547) (71,824) (189,463) (78,814)
-------- --------- --------- -------- ------- ------- -------- --------- --------
$(46,026) $(17,216) $134,200 $ (2,409) $15,456 $ 4,186 $(37,949) $(33,103) $112,157
-------- --------- --------- -------- ------- ------- -------- --------- --------
$ -- $ 1 $ -- $ 52,537 $150,211 $ 76,338
-- -- -- 281 210 35
-- -- -- (51,043) (82,032) (6,651)
-------- --------- --------- -------- ------- ------- -------- --------- --------
$ -- $ 1 $ -- $ 1,775 $ 68,389 $ 69,722
-------- --------- --------- -------- ------- ------- -------- --------- --------
$ -- $ 1 $ --
-- -- --
-- -- --
-------- --------- --------- -------- ------- ------- -------- --------- --------
$ -- $ 1 $ --
-------- --------- --------- -------- ------- ------- -------- --------- --------
-------- --------- --------- -------- ------- ------- -------- --------- --------
-------- --------- --------- -------- ------- ------- -------- --------- --------
$(46,026) $(17,214) $134,200 $ (2,409) $15,456 $ 4,186 $(36,174) $ 35,286 $181,879
======== ========= ========= ======== ======= ======= ======== ========= ========
819 15,801 26,179 1,649 2,444 1,113 16,701 77,447 94,687
76 166 97 44 40 44 187 245 62
(5,506) (17,691) (12,832) (1,935) (958) (741) (35,827) (94,148) (39,084)
-------- --------- --------- -------- ------- ------- -------- --------- --------
(4,611) (1,724) 13,444 (242) 1,526 416 (18,939) (16,456) 55,665
-------- --------- --------- -------- ------- ------- -------- --------- --------
-- -- -- 26,310 74,978 37,979
-- -- -- 141 105 18
-- -- -- (25,575) (40,981) (3,309)
-------- --------- --------- -------- ------- ------- -------- --------- --------
-- -- -- 876 34,102 34,688
-------- --------- --------- -------- ------- ------- -------- --------- --------
-- -- --
-- -- --
-- -- --
-------- --------- --------- -------- ------- ------- -------- --------- --------
-- -- --
-------- --------- --------- -------- ------- ------- -------- --------- --------
-------- --------- --------- -------- ------- ------- -------- --------- --------
-------- --------- --------- -------- ------- ------- -------- --------- --------
(4,611) (1,724) 13,444 (242) 1,526 416 (18,063) 17,646 90,353
======== ========= ========= ======== ======= ======= ======== ========= ========
</Table>
98
NOTES TO FINANCIAL STATEMENTS (continued)
STI CLASSIC FUNDS March 31, 2005
<Table>
<Caption>
Classic Institutional
Classic Institutional U.S. Government Seix Institutional
Total Return Securities Super Short High Yield
Bond Fund Income Plus Fund Fund
---------------------- --------------------------------- ----------------------------------
06/01/04- 10/15/03*- 06/01/04- 06/01/03- 06/01/02- 11/01/04- 11/01/03- 11/01/02-
03/31/05 05/31/04 03/31/05 05/31/04 05/31/03 03/31/05 10/31/04 10/31/03
--------- ---------- --------- --------- --------- --------- --------- ----------
Capital Transactions:
Institutional Shares:
Proceeds from Shares Issued.... $ 63,889 $18,136 $ 30,218 $ 62,017 $123,870 $144,588 $868,270 $1,018,097
Dividends Reinvested........... 422 225 575 596 919 49,289 74,278 28,000
Cost of Shares Redeemed........ (21,945) (2,376) (58,326) (79,764) (57,852) (427,085) (353,054) (102,501)
-------- ------- -------- -------- -------- --------- --------- ----------
Change in Net Assets From
Institutional Share
Transactions................. $ 42,366 $15,985 $(27,533) $(17,151) $ 66,937 $(233,208) $589,494 $ 943,596
-------- ------- -------- -------- -------- --------- --------- ----------
Corporate Trust Shares:
Proceeds from Shares Issued....
Dividends Reinvested...........
Cost of Shares Redeemed........
-------- ------- -------- -------- -------- --------- --------- ----------
Change in Net Assets From
Corporate Trust Shares.......
-------- ------- -------- -------- -------- --------- --------- ----------
T Shares (1):
Proceeds from Shares Issued.... $ 9,247 $34,463 $ 1,179 $ 1,798 $ --
Dividends Reinvested........... 832 352 20 -- --
Cost of Shares Redeemed........ (36,570) (1,601) (91) (31) --
-------- ------- -------- -------- -------- --------- --------- ----------
Change in Net Assets From T
Shares Transactions.......... $(26,491) $33,214 $ 1,108 $ 1,767 $ --
-------- ------- -------- -------- -------- --------- --------- ----------
L Shares (2):
Proceeds from Shares Issued.... $ 5,128 $ 85,370 $ 25,108 $ 3,438 $ 1 $ --
Dividends Reinvested........... 280 480 14 7 -- --
Cost of Shares Redeemed........ (30,436) (71,061) (1,368) (70) -- --
-------- ------- -------- -------- -------- --------- --------- ----------
Change in Net Assets From L
Shares Transactions.......... $(25,028) $ 14,789 $ 23,754 $ 3,375 $ 1 $ --
-------- ------- -------- -------- -------- --------- --------- ----------
A Shares (3):
Proceeds from Shares Issued.... $ 1,729 $ 3,288 $ 19,870
Dividends Reinvested........... 404 559 618
Cost of Shares Redeemed........ (7,897) (3,509) (16,824)
-------- ------- -------- -------- -------- --------- --------- ----------
Change in Net Assets From A
Shares Transactions.......... $ (5,764) $ 338 $ 3,664
-------- ------- -------- -------- -------- --------- --------- ----------
Change in Net Assets from
Capital Transactions......... $ 15,875 $49,199 $(52,561) $ (2,362) $ 90,691 $(234,489) $591,600 $ 947,260
======== ======= ======== ======== ======== ========= ========= ==========
Share Transactions:
Institutional Shares:
Issued......................... 6,343 1,796 15,112 30,928 61,485 12,773 77,562 94,090
Reinvested..................... 42 22 288 297 455 4,356 6,653 2,577
Redeemed....................... (2,180) (232) (29,178) (39,825) (28,680) (37,787) (31,699) (9,352)
-------- ------- -------- -------- -------- --------- --------- ----------
Change in Institutional Share
Transactions................. 4,205 1,586 (13,778) (8,600) 33,260 (20,658) 52,516 87,315
-------- ------- -------- -------- -------- --------- --------- ----------
Corporate Trust Shares:
Issued.........................
Reinvested.....................
Redeemed.......................
-------- ------- -------- -------- -------- --------- --------- ----------
Change in Corporate Trust Share
Transactions.................
-------- ------- -------- -------- -------- --------- --------- ----------
T Shares (1):
Issued......................... 922 3,381 104 159 --
Reinvested..................... 83 35 2 -- --
Redeemed....................... (3,626) (160) (8) (3) --
-------- ------- -------- -------- -------- --------- --------- ----------
Change in T Share
Transactions................. (2,621) 3,256 98 156 --
-------- ------- -------- -------- -------- --------- --------- ----------
L Shares (2):
Issued......................... 517 8,554 2,509 303 -- --
Reinvested..................... 28 48 1 1 -- --
Redeemed....................... (3,066) (7,134) (137) (6) -- --
-------- ------- -------- -------- -------- --------- --------- ----------
Change in L Share
Transactions................. (2,521) 1,468 2,373 298 -- --
-------- ------- -------- -------- -------- --------- --------- ----------
A Shares (3):
Issued......................... 157 303 1,950
Reinvested..................... 36 51 60
Redeemed....................... (715) (319) (1,625)
-------- ------- -------- -------- -------- --------- --------- ----------
Change in A Share
Transactions................. (522) 35 385
-------- ------- -------- -------- -------- --------- --------- ----------
Change in Share Transactions... 1,584 4,842 (16,299) (7,132) 35,633 (20,784) 52,707 87,700
======== ======= ======== ======== ======== ========= ========= ==========
</Table>
* Commencement of operations.
(1) T shares were offered beginning on October 11, 2004 for the Classic
Institutional Core Bond Fund, the Classic Institutional Intermediate Bond
Fund, the Classic Institutional Limited Duration Fund and the Seix
Institutional High Yield Fund. T shares were offered beginning on November
13, 2003, October 3, 2002 and January 14, 2004 for the Classic Institutional
High Quality Bond Fund, the Classic Institutional Super Short Income Plus
Fund and the Classic Institutional Total Return Fund, respectively.
(2) L shares were offered beginning on October 11, 2004 for the Classic
Institutional Core Bond Fund, the Classic Institutional Intermediate Bond
Fund, the Classic Institutional Limited Duration Fund and the Seix
Institutional High Yield Fund. L Shares were offered beginning on April 16,
2003 for the Classic Institutional U.S. Government Securities Super Short
Income Plus Fund.
(3) A shares were offered beginning on October 11, 2004 for the Classic
Institutional Intermediate Bond Fund.
Amounts designated as "--" are either $0 or have been rounded to $0.
99
<Table>
<Caption>
Classic Institutional Classic Institutional Classic Institutional
Cash Management U.S. Government Securities U.S. Treasury Securities
Money Market Fund Money Market Fund Money Market Fund
- --------------------------------------- --------------------------------------- ---------------------------------------
06/01/04- 06/01/03- 06/01/02- 06/01/04- 06/01/03- 06/01/02- 06/01/04- 06/01/03- 06/01/02-
03/31/05 05/31/04 05/31/03 03/31/05 05/31/04 05/31/03 03/31/05 05/31/04 05/31/03
--------- ----------- ----------- ----------- ----------- ----------- ----------- ----------- -----------
$ 7,385,743 $ 7,415,918 $ 8,275,886 $ 2,467,346 $ 2,512,598 $ 2,229,173 $ 2,489,770 $ 3,003,944 $ 3,267,354
17,767 14,226 28,135 4,387 2,820 4,993 3,113 2,922 5,216
(7,180,727) (8,047,111) (8,727,887) (2,435,337) (2,697,227) (2,219,814) (2,216,507) (3,239,309) (3,170,785)
- ----------- ----------- ----------- ----------- ----------- ----------- ----------- ----------- -----------
$ 222,783 $ (616,967) $ (423,866) $ 36,396 $ (181,809) $ 14,352 $ 276,376 $ (232,443) $ 101,785
- ----------- ----------- ----------- ----------- ----------- ----------- ----------- ----------- -----------
$ 3,119,275 $ 3,290,925 $ 3,516,733
-- -- --
(2,671,779) (3,211,341) (4,022,699)
- ----------- ----------- ----------- ----------- ----------- ----------- ----------- ----------- -----------
$ 447,496 $ 79,584 $ (505,966)
- ----------- ----------- ----------- ----------- ----------- ----------- ----------- ----------- -----------
- ----------- ----------- ----------- ----------- ----------- ----------- ----------- ----------- -----------
- ----------- ----------- ----------- ----------- ----------- ----------- ----------- ----------- -----------
- ----------- ----------- ----------- ----------- ----------- ----------- ----------- ----------- -----------
- ----------- ----------- ----------- ----------- ----------- ----------- ----------- ----------- -----------
- ----------- ----------- ----------- ----------- ----------- ----------- ----------- ----------- -----------
- ----------- ----------- ----------- ----------- ----------- ----------- ----------- ----------- -----------
$ 222,783 $ (616,967) $ (423,866) $ 36,396 $ (181,809) $ 14,352 $ 723,872 $ (152,859) $ (404,181)
=========== =========== =========== =========== =========== =========== =========== =========== ===========
7,385,743 7,415,918 8,275,886 2,467,346 2,512,598 2,229,173 2,489,770 3,003,944 3,267,354
17,767 14,226 28,135 4,387 2,820 4,993 3,113 2,922 5,216
(7,180,727) (8,047,111) (8,727,887) (2,435,337) (2,697,227) (2,219,814) (2,216,507) (3,239,309) (3,170,785)
- ----------- ----------- ----------- ----------- ----------- ----------- ----------- ----------- -----------
222,783 (616,967) (423,866) 36,396 (181,809) 14,352 276,376 (232,443) 101,785
- ----------- ----------- ----------- ----------- ----------- ----------- ----------- ----------- -----------
3,119,275 3,290,925 3,516,733
-- -- --
(2,671,779) (3,211,341) (4,022,699)
- ----------- ----------- ----------- ----------- ----------- ----------- ----------- ----------- -----------
447,496 79,584 (505,966)
- ----------- ----------- ----------- ----------- ----------- ----------- ----------- ----------- -----------
- ----------- ----------- ----------- ----------- ----------- ----------- ----------- ----------- -----------
- ----------- ----------- ----------- ----------- ----------- ----------- ----------- ----------- -----------
- ----------- ----------- ----------- ----------- ----------- ----------- ----------- ----------- -----------
- ----------- ----------- ----------- ----------- ----------- ----------- ----------- ----------- -----------
- ----------- ----------- ----------- ----------- ----------- ----------- ----------- ----------- -----------
- ----------- ----------- ----------- ----------- ----------- ----------- ----------- ----------- -----------
222,783 (616,967) (423,866) 36,396 (181,809) 14,352 723,872 (152,859) (404,181)
=========== =========== =========== =========== =========== =========== =========== =========== ===========
</Table>
100
NOTES TO FINANCIAL STATEMENTS (continued)
STI CLASSIC FUNDS March 31, 2005
7. Federal Tax Policies and Information
It is the policy of each Fund to continue to qualify as a regulated investment
company by complying with the provisions available to certain investment
companies as defined in applicable sections of the Internal Revenue Code, and to
make distributions from net investment income and from net realized gains
sufficient to relieve it from all, or substantially all, federal income taxes.
Withholding taxes on foreign dividends have been paid or provided for in
accordance with applicable country's tax rules and rates.
At March 31, 2005, the total cost of securities and the net realized gains or
losses on securities sold for Federal income tax purposes were different from
amounts reported for financial reporting purposes generally due to wash sales
which cannot be used for Federal income tax purposes in the current year and
have been deferred for use in future years. The Federal tax cost and aggregate
gross unrealized appreciation and depreciation for securities held by the Funds
at March 31, 2005, were as follows (in thousands):
<Table>
<Caption>
Aggregate Gross Aggregate Gross Net Unrealized
Federal Tax Unrealized Unrealized Appreciation
Cost Appreciation Depreciation (Depreciation)
----------- --------------- --------------- --------------
Classic Institutional Core Bond Fund........................ $ 345,449 $ 260 $ (1,872) $(1,612)
Classic Institutional High Quality Bond Fund................ 64,196 131 (633) (502)
Classic Institutional Intermediate Bond Fund................ 55,789 81 (540) (459)
Classic Institutional Limited Duration Fund................. 82,953 14 (15) (1)
Classic Institutional Short-Term Bond Fund.................. 37,926 1 (407) (406)
Classic Institutional Super Short Income Plus Fund.......... 215,509 137 (866) (729)
Classic Institutional Total Return Bond Fund................ 67,932 328 (524) (196)
Classic Institutional U.S. Government Securities Super Short
Income Plus Fund.......................................... 62,381 44 (296) (252)
Seix Institutional High Yield Fund.......................... 1,407,751 19,160 (26,996) (7,836)
Classic Institutional Cash Management Money Market Fund..... 2,591,422 -- -- --
Classic Institutional U.S. Government Securities Money
Market Fund............................................... 896,071 -- -- --
Classic Institutional U.S. Treasury Securities Money Market
Fund...................................................... 2,836,003 -- (85) (85)
</Table>
The tax character of distributions paid to shareholders during the fiscal year
ended March 31, 2005 was as follows (in thousands):
<Table>
<Caption>
Distributions paid from
------------------------------ Total
Net Investment Net Long Term Distributions
Fund Income Capital Gains Paid*
---- -------------- ------------- -------------
Classic Institutional Core Bond Fund........................ $ 1,857 $ 267 $ 2,124
Classic Institutional High Quality Bond Fund................ 2,841 -- 2,841
Classic Institutional Intermediate Bond Fund................ 556 328 884
Classic Institutional Limited Duration Fund................. 821 3 824
Classic Institutional Short-Term Bond Fund.................. 661 44 705
Classic Institutional Super Short Income Plus Fund.......... 3,559 -- 3,559
Classic Institutional Total Return Bond Fund................ 1,724 -- 1,724
Classic Institutional U.S. Government Securities Super Short
Income Plus Fund.......................................... 1,660 -- 1,660
Seix Institutional High Yield Fund.......................... 49,190 7,880 57,070
Classic Institutional Cash Management Money Market Fund..... 33,687 -- 33,687
Classic Institutional U.S. Government Securities Money
Market Fund............................................... 11,006 -- 11,006
Classic Institutional U.S. Treasury Securities Money Market
Fund...................................................... 22,216 -- 22,216
</Table>
* Total distributions paid differ from the Statement of Changes in Net Assets
because for tax purposes dividends are recognized when actually paid.
101
The tax character of distributions paid to shareholders during the fiscal years
ended as noted, was as follows (in thousands):
<Table>
<Caption>
Distributions paid from
------------------------------ Total
Net Investment Net Long Term Distributions
Fund Income Capital Gains Paid*
- ---- -------------- ------------- -------------
Classic Institutional Core Bond Fund (a).................... $ 2,217 $141 $ 2,358
Classic Institutional High Quality Bond Fund (b)............ 1,056 -- 1,056
Classic Institutional Intermediate Bond Fund (a)............ 973 -- 973
Classic Institutional Limited Duration Fund (a)............. 1,544 -- 1,544
Classic Institutional Short-Term Bond Fund (b).............. 651 20 671
Classic Institutional Super Short Income Plus Fund (b)...... 3,817 -- 3,817
Classic Institutional Total Return Bond Fund (b)............ 607 -- 607
Classic Institutional U.S. Government Securities Super Short
Income Plus Fund (b)...................................... 1,906 -- 1,906
Seix Institutional High Yield Fund (a)...................... 89,336 164 89,500
Classic Institutional Cash Management Money Market Fund
(b)....................................................... 23,696 -- 23,696
Classic Institutional U.S. Government Securities Money
Market Fund (b)........................................... 8,014 -- 8,014
Classic Institutional U.S. Treasury Securities Money Market
Fund (b).................................................. 12,365 36 12,401
</Table>
(a) For the fiscal year ended October 31, 2004.
(b) For the fiscal year ended May 31, 2004.
The tax character of distributions paid to shareholders during the fiscal years
ended May 31, 2003 was as follows (in thousands):
<Table>
<Caption>
Total Distributions
Paid from Net
Investment
Fund Income*
- ---- -------------------
Classic Institutional Short-Term Bond Fund.................. $ 718
Classic Institutional Super Short Income Plus Fund.......... 2,148
Classic Institutional U.S. Government Securities Super Short
Income Plus Fund.......................................... 1,581
Classic Institutional Cash Management Money Market Fund..... 45,956
Classic Institutional U.S. Government Securities Money
Market Fund............................................... 14,586
Classic Institutional U.S. Treasury Securities Money Market
Fund...................................................... 23,256
</Table>
* Total distributions paid differ from the Statement of Changes in Net Assets
because for tax purposes dividends are recognized when actually paid.
As of March 31, 2005 the components of accumulated earnings (deficit) on a tax
basis were as follows:
<Table>
<Caption>
Undistributed Undistributed Accumulated Unrealized
Ordinary Long Term Accumulated Distributions Capital and Other Appreciation
Fund Income Capital Gains Earnings Payable Losses (Depreciation)**
- ---- ------------- ------------- ----------- ------------- ----------------- ----------------
Classic Institutional Core Bond
Fund......................... $ 803 $ -- $ 803 $ (802) $ (269) $(1,609)
Classic Institutional High
Quality Bond Fund............ 207 -- 207 (174) (970) (502)
Classic Institutional
Intermediate Bond Fund....... 193 101 294 (155) -- (459)
Classic Institutional Limited
Duration Fund................ 258 -- 258 (192) (8) (1)
Classic Institutional
Short-Term Bond Fund......... 81 -- 81 (77) (141) (407)
Classic Institutional Super
Short Income Plus Fund....... 466 -- 466 (478) (1,138) (729)
Classic Institutional Total
Return Bond Fund............. 222 -- 222 (202) (824) (196)
Classic Institutional U.S.
Government Securities Super
Short Income Plus Fund....... 134 -- 134 (150) (1,031) (252)
Seix Institutional High Yield
Fund......................... 16,786 8,360 25,146 (7,939) -- (7,835)
Classic Institutional Cash
Management Money Market
Fund......................... 5,551 -- 5,551 (5,551) (26) --
Classic Institutional U.S.
Government Securities Money
Market Fund.................. 1,771 -- 1,771 (1,771) -- --
Classic Institutional U.S.
Treasury Securities Money
Market Fund.................. 4,497 -- 4,497 (4,421) (156) (85)
<Caption>
Total
Accumulated
Fund Earnings (Deficit)
- ---- ------------------
Classic Institutional Core Bond
Fund......................... $(1,877)
Classic Institutional High
Quality Bond Fund............ (1,439)
Classic Institutional
Intermediate Bond Fund....... (320)
Classic Institutional Limited
Duration Fund................ 57
Classic Institutional
Short-Term Bond Fund......... (544)
Classic Institutional Super
Short Income Plus Fund....... (1,879)
Classic Institutional Total
Return Bond Fund............. (1,000)
Classic Institutional U.S.
Government Securities Super
Short Income Plus Fund....... (1,299)
Seix Institutional High Yield
Fund......................... 9,372
Classic Institutional Cash
Management Money Market
Fund......................... (26)
Classic Institutional U.S.
Government Securities Money
Market Fund.................. --
Classic Institutional U.S.
Treasury Securities Money
Market Fund.................. (165)
</Table>
** The difference between book-basis and tax-basis unrealized appreciation
(depreciation) is attributable primarily to: tax deferral on wash sales and
the difference between book and tax amortization methods for premium and
market discount.
102
NOTES TO FINANCIAL STATEMENTS (concluded)
STI CLASSIC FUNDS March 31, 2005
As of the latest tax year end of March 31, 2005, the following Funds had net
capital loss carryovers to offset future net capital gains, if any, to the
extent provided by the Treasury regulations. To the extent that these carryovers
are used to offset future gains, it is probable that the gains so offset will
not be distributed to shareholders:
<Table>
<Caption>
Expires
-------------------
Fund 2012 2013
- ---- -------- --------
Classic Institutional Core Bond Fund........................ $ -- $269,247
Classic Institutional High Quality Bond Fund................ -- 970,044
Classic Institutional Limited Duration Fund................. -- 8,036
Classic Institutional Short-Term Bond Fund.................. -- 22,178
Classic Institutional Super Short Income Plus Fund.......... 587,658 548,433
Classic Institutional Total Return Bond Fund................ 218,476 572,985
Classic Institutional U.S. Government Securities Super Short
Income Plus Fund.......................................... 518,385 393,173
Classic Institutional U.S. Treasury Securities Money Market
Fund...................................................... -- 156,332
</Table>
Net capital losses incurred after October 31, and within the taxable year are
deemed to arise on the first business day of the Funds' next taxable year. The
Funds have incurred and will elect to defer capital losses as follows:
<Table>
<Caption>
Fund Capital Losses
- ---- --------------
Classic Institutional Short-Term Bond Fund.................. $118,874
Classic Institutional Super Short Income Plus Fund.......... 2,478
Classic Institutional Total Return Bond Fund................ 32,357
Classic Institutional U.S. Government Securities Super Short
Income Plus Fund.......................................... 119,276
Classic Institutional Cash Management Money Market Fund..... 26,100
</Table>
8. Portfolio Investment Risks
Funds that invest in high yield instruments are subject to certain additional
credit and market risks. The yields of high yield debt obligations reflect,
among other things, perceived credit risk. High Yield securities involved
greater risk of default or downgrade and are more volatile than investment grade
securities.
The Classic Institutional Cash Management Money Market Fund, the Classic
Institutional U.S. Government Securities Money Market Fund and the Classic
Institutional U.S. Treasury Securities Money Market Fund invest primarily in
money market instruments maturing in 397 days or less whose ratings are within
one of the two highest ratings categories assigned by a nationally recognized
statistical rating agency, or, if not rated, are believed to be of comparable
quality. The ability of the issuers of the securities held by the Fund to meet
their obligations may be affected by economic developments in a specific
industry, state or region.
Certain securities are backed by letters of credit from various financial
institutions and financial guaranty assurance agencies. These letters of credit
enhance the credit quality of the individual securities; however, if any of the
financial institutions or financial guaranty assurance agencies' credit quality
should deteriorate, it could cause the individual security's credit quality to
change. Additionally, if any of the Funds concentrate their letters of credit in
any one financial institution, the risk of credit quality deterioration
increases.
The Funds hold certain securities whereby the issuer operates under a
congressional charter; these securities (Federal Home Loan Mortgage Corporation,
Federal Home Loan Bank and Federal National Mortgage Association) are neither
issued nor guaranteed by the U.S. Government. If needed, access to additional
funding from the U.S. Treasury (beyond the issuer's line of credit), would
require congressional action.
9. Securities Lending
The Classic Institutional Short-Term Bond Fund, Classic Institutional Super
Short Income Plus Fund, Classic Institutional U.S. Government Securities Super
Short Income Plus Fund and Seix Institutional High Yield Fund may lend portfolio
securities to brokers, dealers and other financial organizations that meet
capital and other credit requirements or other criteria established by the
Trust's Board. These loans may not exceed either (i) 50% of the sum of the
market value of all securities of the Fund and the market value of the loan
collateral or (ii) 33.33% of the market value of all securities of the Fund. No
Fund will lend portfolio securities to its investment adviser or its affiliates
unless it has applied for and received specific authority to do so from the
Securities and Exchange Commission. Loans of portfolio securities will be fully
collateralized by cash. The initial value of the collateral is at least 102% of
the
103
market value of the securities loaned, and 100% thereafter. However, due to
market fluctuations during the day, the value of securities loaned on a
particular day may, during the course of the day, exceed the value of
collateral. On each business day, the amount of collateral is adjusted based on
the prior day's market fluctuations and the current day's lending activity.
Income from lending activity is determined by the amount of interest earned on
collateral, less any amounts payable to the borrowers of the securities and the
lending agent. Lending securities involves certain risks, including the risk
that the Fund may be delayed or prevented from recovering the collateral if the
borrower fails to return the securities.
Cash collateral received in connection with securities lending is invested in
the CSFB Enhanced Liquidity Portfolio. This investment consists of money market
instruments including money market mutual funds registered under the Investment
Company Act of 1940, commercial paper, repurchase agreements and U.S. Agency
Obligations. At March 31, 2005, the Portfolio was invested in commercial paper,
repurchase agreements, asset backed securities and U.S. Agency Obligations (with
interest rates ranging from 2.72% to 3.13% and maturity dates ranging from
04/01/05 to 03/04/08). The Funds paid fees for securities lending for the period
ended March 31, 2005, which have been netted against the Security Lending Income
on the Statements of Operations. These fees are presented below (in thousands):
<Table>
<Caption>
Fees
-----
Classic Institutional Short-Term Bond Fund............. $ --
Classic Institutional Super Short Income Plus Fund..... --
Classic Institutional U.S. Government Securities Super
Short Income Plus Fund............................... --
Seix Institutional High Yield Fund..................... --
</Table>
Amounts designated as "--" have been rounded to $0.
10. Subsequent Event
On April 1, 2005, the Institutional Shares and T Shares of the Classic
Institutional Super Short Income Plus Fund and Classic Institutional U.S.
Government Super Short Income Plus Fund completed a 5:1 reverse share split to
move the respective net asset values per share to $10.00 per share. This reverse
share split was authorized by the Board on February 15, 2005.
104
REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM
To the Board of Trustees and Shareholders of
STI Classic Funds:
In our opinion, the accompanying statements of assets and liabilities, including
the schedules of portfolio investments, and the related statements of operations
and of changes in net assets and the financial highlights present fairly, in all
material respects, the financial position of Classic Institutional Core Bond
Fund, Classic Institutional High Quality Bond Fund, Classic Institutional
Intermediate Bond Fund, Classic Institutional Limited Duration Fund, Classic
Institutional Short-Term Bond Fund, Classic Institutional Super Short Income
Plus Fund, Classic Institutional Total Return Bond Fund, Classic Institutional
U.S. Government Securities Super Short Income Plus Fund, Seix Institutional High
Yield Fund, Classic Institutional Cash Management Money Market Fund, Classic
Institutional U.S. Government Securities Money Market Fund and Classic
Institutional U.S. Treasury Securities Money Market Fund (twelve of the
forty-nine funds constituting STI Classic Funds, hereafter referred to as the
"Funds") at March 31, 2005, the results of each of their operations for the
period June 1, 2004 to March 31, 2005 and the year (or period) ended May 31,
2004, the changes in each of their net assets for the period June 1, 2004 to
March 31, 2005 and for each of the two years (or periods) in the period ended
May 31, 2004 and the financial highlights for the period June 1, 2004 to March
31, 2005 and for each of the three years (or periods) in the period ended May
31, 2004, except for the Classic Institutional Core Bond Fund, Classic
Institutional Intermediate Bond Fund, Classic Institutional Limited Duration
Bond Fund and Seix Institutional High Yield Bond Fund for which the results of
their operations, the changes in their net assets and the financial highlights
are for the period November 1, 2004 to March 31, 2005 and the year ended October
31, 2004, in conformity with accounting principles generally accepted in the
United States of America. These financial statements and financial highlights
(hereafter referred to as "financial statements") are the responsibility of the
Funds' management; our responsibility is to express an opinion on these
financial statements based on our audits. We conducted our audits of these
financial statements in accordance with the standards of the Public Company
Accounting Oversight Board (United States). Those standards require that we plan
and perform the audit to obtain reasonable assurance about whether the financial
statements are free of material misstatement. An audit includes examining, on a
test basis, evidence supporting the amounts and disclosures in the financial
statements, assessing the accounting principles used and significant estimates
made by management, and evaluating the overall financial statement presentation.
We believe that our audits, which included confirmation of securities at March
31, 2005 by correspondence with the custodian and brokers, provide a reasonable
basis for our opinion. The statements of changes in net assets for the year
ended October 31, 2003 and the financial highlights for each of the four years
(or periods) ended October 31, 2003 of Classic Institutional Core Bond Fund,
Classic Institutional Intermediate Bond Fund, Classic Institutional Limited
Duration Bond Fund and Seix Institutional High Yield Bond Fund were audited by
other independent accountants whose report dated December 19, 2003 expressed an
unqualified opinion on those financial statements. The financial highlights for
each of the two years (or periods) ended May 31, 2001 of all other funds were
audited by other independent accountants who have ceased operations. Those
independent accountants expressed an unqualified opinion on those financial
statements in their report dated July 18, 2001.
PricewaterhouseCoopers LLP
Philadelphia, Pennsylvania
May 25, 2005
105
TRUSTEES AND OFFICERS OF THE STI CLASSIC FUNDS (UNAUDITED)
- --------------------------------------------------------------------------------
Information pertaining to the trustees of the Trust is set forth below. Trustees
who are not deemed to be "interested persons" of the Trust as defined in the
1940 Act are referred to as "Independent Board Member." Trustees who are deemed
to be "interested persons" of the Trust are referred to as "Interested Board
Member." Messrs. Courts and Ridley are Trustees who may be deemed to be
"interested persons" of the Trust.
- --------------------------------------------------------------------------------
<Table>
<Caption>
TERM OF PRINCIPAL NUMBER OF
NAME, ADDRESS, POSITION(S) OFFICE AND OCCUPATION(S) PORTFOLIOS
AND HELD WITH LENGTH OF DURING THE OVERSEEN FOR
DATE OF BIRTH THE GROUP TIME SERVED PAST 5 YEARS THE TRUST
- ---------------------------------------------------------------------------------------------------------
INTERESTED
BOARD MEMBERS*
Richard W. Courts, II Trustee Indefinite: Chairman, Atlantic Investment Company. 49
3435 Stelzer Road since
Columbus, OH 43219 November, 2001
01/18/36
- ---------------------------------------------------------------------------------------------------------
Clarence H. Ridley Trustee Indefinite: Chairman, Haverty Furniture Companies, 49
3435 Stelzer Road since 2001 to present; Partner, King and
Columbus, OH 43219 November, 2001 Spaulding LLP (law firm), 1977 to
06/03/42 2000.
- ---------------------------------------------------------------------------------------------------------
INDEPENDENT
BOARD MEMBERS
Thomas Gallagher Trustee Indefinite: President and CEO, Genuine Parts 49
3435 Stelzer Road since May, Company.
Columbus, OH 43219 2000
11/25/47
- ---------------------------------------------------------------------------------------------------------
F. Wendell Gooch Trustee Indefinite: Retired. 49
3435 Stelzer Road since May,
Columbus, OH 43219 1992
12/03/32
- ---------------------------------------------------------------------------------------------------------
James O. Robbins Trustee Indefinite: President and Chief Executive Officer, 49
3435 Stelzer Road since May, Cox Communications, Inc.
Columbus, OH 43219 2000
07/04/42
- ---------------------------------------------------------------------------------------------------------
Jonathan T. Walton Trustee Indefinite: Retired. 49
3435 Stelzer Road since
Columbus, OH 43219 February, 1998
03/28/30
- ---------------------------------------------------------------------------------------------------------
Sidney E. Harris Trustee Indefinite: Professor (since 2004) and Dean (1997- 49
3435 Stelzer Road since 2004) of J. Mack Robinson College of
Columbus, OH 43219 November, 2004 Business, Georgia State University.
07/21/49
- ---------------------------------------------------------------------------------------------------------
Warren Y. Jobe Trustee Indefinite: Retired. EVP, Georgia Power Co. and 49
3435 Stelzer Road since SVP, Southern Co. (1998-2001).
Columbus, OH 43219 November, 2004
11/12/40
- ---------------------------------------------------------------------------------------------------------
Charles D. Winslow Trustee Indefinite: Retired. Former Partner, Accenture. 49
3435 Stelzer Road since
Columbus, OH 43219 November, 2004
07/13/35
- ---------------------------------------------------------------------------------------------------------
Connie D. McDaniel Trustee Indefinite: Vice President and Controller, The 49
3435 Stelzer Road since May, Coca- Cola Co.
Columbus, OH 43219 2005
04/10/58
- ---------------------------------------------------------------------------------------------------------
<Caption>
OTHER
NAME, ADDRESS, DIRECTORSHIPS
AND HELD BY BOARD
DATE OF BIRTH MEMBER
- -------------------------------------------------------------------------------
INTERESTED
BOARD MEMBERS*
Richard W. Courts, II Director, Cousins Properties,
3435 Stelzer Road Inc.; Director, Genuine Parts
Columbus, OH 43219 Co.; Director, Piedmont Medical
01/18/36 Center; Director, SunTrust
Bank, Atlanta; Chairman, Courts
Foundation; Chairman, J. Bulow
Campbell Foundation. Trustee of
STI Classic Variable Trust.
- ---------------------------------------------------------------------------------------------------------
Clarence H. Ridley Director, Crawford & Co.
3435 Stelzer Road Trustee of STI Classic Variable
Columbus, OH 43219 Trust.
06/03/42
- ---------------------------------------------------------------------------------------------------------
INDEPENDENT
BOARD MEMBERS
Thomas Gallagher Director, NAPA; Director,
3435 Stelzer Road Genuine Parts Co.; Director,
Columbus, OH 43219 Stone Mountain Industrial Park;
11/25/47 Trustee, The Lovett School;
Director, Oxford Industries.
Trustee of STI Classic Variable
Trust.
- ---------------------------------------------------------------------------------------------------------
F. Wendell Gooch Trustee of STI Classic Variable
3435 Stelzer Road Trust, and SEI Family of Funds.
Columbus, OH 43219
12/03/32
- ---------------------------------------------------------------------------------------------------------
James O. Robbins Director, National Cable and
3435 Stelzer Road Telecommunications Association;
Columbus, OH 43219 Director, Cable Labs; Director,
07/04/42 C- SPAN; Director, Discovery
Channel; Trustee, St. Paul's
Schools; Director, Cox
Communications. Trustee of STI
Classic Variable Trust.
- ---------------------------------------------------------------------------------------------------------
Jonathan T. Walton Director, Detroit Riverfront
3435 Stelzer Road Conservancy. Trustee of STI
Columbus, OH 43219 Classic Variable Trust
03/28/30
- ---------------------------------------------------------------------------------------------------------
Sidney E. Harris Director, ServiceMaster;
3435 Stelzer Road Director, Total System
Columbus, OH 43219 Services, Inc.; Director,
07/21/49 Transamerica Investors, Inc.
Trustee of STI Classic Variable
Trust.
- ---------------------------------------------------------------------------------------------------------
Warren Y. Jobe Director, WellPoint, Inc.;
3435 Stelzer Road Director, UniSource Energy
Columbus, OH 43219 Corp.; Director, HomeBanc Corp.
11/12/40 Trustee of STI Classic Variable
Trust.
- ---------------------------------------------------------------------------------------------------------
Charles D. Winslow Trustee of STI Classic Variable
3435 Stelzer Road Trust.
Columbus, OH 43219
07/13/35
- ---------------------------------------------------------------------------------------------------------
Connie D. McDaniel Trustee of STI Classic Variable
3435 Stelzer Road Trust.
Columbus, OH 43219
04/10/58
- ---------------------------------------------------------------------------------------------------------
</Table>
* Mr. Courts may be deemed an interested Trustee because of his directorships
with affiliates of the Adviser. Mr. Ridley may be deemed an interested Trustee
because of a material business relationship with the parent of the Adviser.
106
TRUSTEES AND OFFICERS OF THE STI CLASSIC FUNDS (UNAUDITED)
- --------------------------------------------------------------------------------
<Table>
<Caption>
TERM OF
OFFICE AND
POSITION(S) LENGTH OF
NAME, ADDRESS, AND HELD WITH TIME PRINCIPAL OCCUPATION(S)
DATE OF BIRTH THE GROUP SERVED DURING THE PAST 5 YEARS
- -----------------------------------------------------------------------------------------------------------------------
OFFICERS
R. Jeffrey Young President Since 2004 Senior Vice President, Relationship Management, BISYS Fund
3435 Stelzer Road Services since April 2002. Vice President, Client Services,
Columbus, OH 43219 BISYS Fund Services from May 1997 to April 2002.
08/22/64
- -----------------------------------------------------------------------------------------------------------------------
David L. Hughes Treasurer and Since 2005 Vice President, Financial Administration, BISYS Fund
3435 Stelzer Road CFO Services since February 2005. Assistant Vice President,
Columbus, OH 43219 Evergreen Investments from 2000 to 2004; Fund Accounting
01/25/63 Manager, Fidelity Investments from 1998 to 2000.
- -----------------------------------------------------------------------------------------------------------------------
Deborah A. Lamb Executive Vice Since 2003 Chief Compliance Officer and Managing Director of Trusco
50 Hurt Plaza President, Capital Management, Inc. since March 2003 and President of
Atlanta, GA 30303 Assistant Investment Industry Consultants, LLC since June 2000.
10/02/52 Secretary and Director of Compliance at INVESCO, Inc. from March 1995 to
CCO June 2000.
- -----------------------------------------------------------------------------------------------------------------------
Cynthia J. Surprise Secretary Since 2005 Senior Counsel, Legal Services, BISYS Fund Services since
3435 Stelzer Road December 2004. Director and Counsel, Investors Bank & Trust
Columbus, OH 43219 Company from October 1999 to November 2004.
07/08/46
- -----------------------------------------------------------------------------------------------------------------------
Alaina V. Metz Assistant Since 2004 Vice President, Blue Sky Compliance, BISYS Fund Services
3435 Stelzer Road Secretary since January 2002. Chief Administrative Officer, Blue Sky
Columbus, OH 43219 Compliance, BISYS Fund Services from June 1995 to January
04/07/67 2002.
- -----------------------------------------------------------------------------------------------------------------------
Julie M. Powers Assistant Since 2004 Senior Paralegal, Legal Services, BISYS Fund Services since
3435 Stelzer Road Secretary June 2000. Paralegal of Phillips, Lytle, Hitchcock, Blaine &
Columbus, OH 43219 Huber LLP from March 1998 to June 2000.
10/08/69
- -----------------------------------------------------------------------------------------------------------------------
</Table>
107
EXPENSE EXAMPLES (UNAUDITED)
As a shareholder of the STI Classic Funds, you incur two types of costs: (1)
transaction costs, including sales charges; and redemption fees; (2) ongoing
costs, including management fees; distribution [and/or service] 12b-1 fees; and
other Fund expenses. This example is intended to help you understand your
ongoing costs (in dollars) of investing in the STI Classic Funds and to compare
these costs with the ongoing costs of investing in other mutual funds.
The Example is based on an investment of $1,000 invested at the beginning of the
period and held for the entire period from October 1, 2004 through March 31,
2005.
Actual Expenses
The table below provides information about actual account values and actual
expenses. You may use the information below, together with the amount you
invested, to estimate the expenses that you paid over the period. Simply divide
your account value by $1,000 (for example, an $8,600 account value divided by
$1,000 = 8.6), then multiply the result by the number in the table under the
heading entitled "Expenses Paid During Period" to estimate the expenses you paid
on your account during this period.
<Table>
<Caption>
Beginning Ending Expense Paid
Account Value Account Value During Period*
10/01/04 3/31/05 10/01/04-3/31/05
------------- -------------- ----------------
Classic Institutional Core
Bond Fund................... Institutional Shares $1,000.00 $1,008.80 $2.20
T Shares (a) 1,000.00 1,007.90 2.55
L Shares (a) 1,000.00 1,005.80 5.40
A Shares 1,000.00 1,006.40 3.35
Classic Institutional High
Quality Bond Fund........... Institutional Shares 1,000.00 995.70 3.33
T Shares 1,000.00 995.90 4.13
Classic Institutional
Intermediate Bond Fund...... Institutional Shares 1,000.00 999.50 1.84
T Shares (a) 1,000.00 998.30 2.84
L Shares (a) 1,000.00 995.80 5.42
A Shares (a) 1,000.00 997.50 3.64
Classic Institutional Limited
Duration Fund............... Institutional Shares 1,000.00 1,009.80 1.30
T Shares (a) 1,000.00 1,009.60 1.70
L Shares (a) 1,000.00 1,007.90 3.50
Classic Institutional
Short-Term Bond Fund........ Institutional Shares 1,000.00 1,000.30 2.04
Classic Institutional Super
Short Income Plus Fund...... Institutional Shares 1,000.00 1,006.70 1.60
T Shares 1,000.00 1,005.80 2.55
Classic Institutional Total
Return Bond Fund............ Institutional Shares 1,000.00 1,009.60 2.96
T Shares 1,000.00 1,009.70 3.66
Classic Institutional U.S.
Government Securities Super
Short Income Plus Fund...... Institutional Shares 1,000.00 1,007.80 0.85
L Shares 1,000.00 1,008.30 2.35
Seix Institutional High Yield
Fund........................ Institutional Shares 1,000.00 1,011.30 2.46
T Shares (a) 1,000.00 1,010.60 3.31
L Shares (a) 1,000.00 1,007.20 5.65
A Shares 1,000.00 1,010.20 3.66
Classic Institutional Cash
Management Money Market
Fund........................ Institutional Shares 1,000.00 1,010.10 0.90
Classic Institutional U.S.
Government Securities Money
Market Fund................. Institutional Shares 1,000.00 1,009.60 1.20
Classic Institutional U.S.
Treasury Securities Money
Market Fund................. Institutional Shares 1,000.00 1,009.60 1.20
Corporate Trust
Shares................ 1,000.00 1,008.60 2.20
<Caption>
Expense Ratio
During Period**
10/01/04-3/31/05
----------------
Classic Institutional Core
Bond Fund................... 0.44%
0.51%
1.08%
0.67%
Classic Institutional High
Quality Bond Fund........... 0.67%
0.83%
Classic Institutional
Intermediate Bond Fund...... 0.37%
0.57%
1.09%
0.73%
Classic Institutional Limited
Duration Fund............... 0.26%
0.34%
0.70%
Classic Institutional
Short-Term Bond Fund........ 0.41%
Classic Institutional Super
Short Income Plus Fund...... 0.32%
0.51%
Classic Institutional Total
Return Bond Fund............ 0.59%
0.73%
Classic Institutional U.S.
Government Securities Super
Short Income Plus Fund...... 0.17%
0.47%
Seix Institutional High Yield
Fund........................ 0.49%
0.66%
1.13%
0.73%
Classic Institutional Cash
Management Money Market
Fund........................ 0.18%
Classic Institutional U.S.
Government Securities Money
Market Fund................. 0.24%
Classic Institutional U.S.
Treasury Securities Money
Market Fund................. 0.24%
0.44%
</Table>
- ---------------
* Expenses are equal to the average account value times the Fund's annualized
expense ratio multiplied by the number of days in the most recent half-year
divided by the number of days in the year.
** Annualized.
(a) Class commenced operations on October 11, 2004.
108
EXPENSE EXAMPLES (UNAUDITED)
- --------------------------------------------------------------------------------
Hypothetical Example
The table below provides information about hypothetical account values and
hypothetical expenses based on each STI Classic Funds' actual expense ratio and
an assumed rate of return of 5% per year before expenses, which is not the
Fund's actual return. The hypothetical account values and expenses may not be
used to estimate the actual ending account balance or expenses you paid for the
period. You may use this information to compare this 5% hypothetical example
with the 5% hypothetical examples that appear in the shareholder reports of
other funds.
Please note that the expenses shown in the table are meant to highlight your
ongoing costs only and do not reflect any transactional costs. 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.
<Table>
<Caption>
Beginning Ending Expense Paid Expense Ratio
Account Value Account Value During Period* During Period**
10/01/04 3/31/05 10/01/04-3/31/05 10/01/04-3/31/05
------------- ------------- ---------------- ----------------
Classic Institutional Core
Bond Fund................ Institutional Shares $1,000.00 $1,022.74 $2.22 0.44%
T Shares (a) 1,000.00 1,022.39 2.57 0.51%
L Shares (a) 1,000.00 1,019.55 5.44 1.08%
A Shares 1,000.00 1,021.59 3.38 0.67%
Classic Institutional High
Quality Bond Fund........ Institutional Shares 1,000.00 1,021.59 3.38 0.67%
T Shares 1,000.00 1,020.79 4.18 0.83%
L Shares 1,000.00 1,017.85 7.14 1.42%
Classic Institutional
Intermediate Bond Fund... Institutional Shares 1,000.00 1,023.09 1.87 0.37%
T Shares (a) 1,000.00 1,022.09 2.87 0.57%
L Shares (a) 1,000.00 1,019.50 5.49 1.09%
A Shares (a) 1,000.00 1,021.29 3.68 0.73%
Classic Institutional
Limited Duration Fund.... Institutional Shares 1,000.00 1,023.64 1.31 0.26%
T Shares (a) 1,000.00 1,023.24 1.72 0.34%
L Shares (a) 1,000.00 1,021.44 3.53 0.70%
Classic Institutional
Short-Term Bond Fund..... Institutional Shares 1,000.00 1,022.89 2.07 0.41%
Classic Institutional Super
Short Income Plus Fund... Institutional Shares 1,000.00 1,023.34 1.61 0.32%
T Shares 1,000.00 1,022.39 2.57 0.51%
Classic Institutional Total
Return Bond Fund......... Institutional Shares 1,000.00 1,021.99 2.97 0.59%
T Shares 1,000.00 1,021.29 3.68 0.73%
Classic Institutional U.S.
Government Securities
Super Short Income Plus
Fund..................... Institutional Shares 1,000.00 1,024.08 0.86 0.17%
L Shares 1,000.00 1,022.59 2.37 0.47%
Seix Institutional High
Yield Fund............... Institutional Shares 1,000.00 1,022.49 2.47 0.49%
T Shares (a) 1,000.00 1,021.64 3.33 0.66%
L Shares (a) 1,000.00 1,019.30 5.69 1.13%
A Shares 1,000.00 1,021.29 3.68 0.73%
</Table>
109
- --------------------------------------------------------------------------------
<Table>
<Caption>
Beginning Ending Expense Paid Expense Ratio
Account Value Account Value During Period* During Period**
10/01/04 3/31/05 10/01/04-3/31/05 10/01/04-3/31/05
------------- ------------- ---------------- ----------------
Classic Institutional Cash
Management Money Market
Fund..................... Institutional Shares $1,000.00 $1,024.03 $0.91 0.18%
Classic Institutional U.S.
Government Securities
Money Market Fund........ Institutional Shares 1,000.00 1,023.73 1.21 0.24%
Classic Institutional U.S.
Treasury Securities Money
Market Fund.............. Institutional Shares 1,000.00 1,023.73 1.21 0.24%
Corporate Trust Shares 1,000.00 1,022.74 2.22 0.44%
</Table>
- ---------------
* Expenses are equal to the average account value times the Fund's annualized
expense ratio multiplied by the number of days in the most recent half-year
divided by the number of days in the year.
** Annualized.
(a) Class commenced operations on October 11, 2004.
110
SPECIAL MEETING OF SHAREHOLDERS (UNAUDITED)
A special meeting of the shareholders of STI Classic Funds (the "Funds") was
held on November 15, 2004. At the meeting shareholders voted and approved the
following proposal:
Proposal 1: To consider and vote on the election of members to the Board
of Trustees of the Trust.
The results of this meeting are presented below:
RICHARD W. COURTS, II
<Table>
<Caption>
# of Shares % of Outstanding Shares % of Shares Present
----------------- ----------------------- -------------------
Affirmative............................. 8,643,079,484.413 57.607% 99.775%
Withhold................................ 19,527,110.520 .130% .225%
----------------- ------ -------
Total................................... 8,662,606,594.933 57.737% 100.000%
</Table>
THOMAS C. GALLAGHER
<Table>
<Caption>
# of Shares % of Outstanding Shares % of Shares Present
----------------- ----------------------- -------------------
Affirmative............................. 8,647,093,895.243 57.634% 99.821%
Withhold................................ 15,512,699.690 .103% .179%
----------------- ------ -------
Total................................... 8,662,606,594.933 57.737% 100.000%
</Table>
F. WENDELL GOOCH
<Table>
<Caption>
# of Shares % of Outstanding Shares % of Shares Present
----------------- ----------------------- -------------------
Affirmative............................. 8,646,942,792.353 57.632% 99.819%
Withhold................................ 15,663,802.580 .105% .181%
----------------- ------ -------
Total................................... 8,662,606,594.933 57.737% 100.000%
</Table>
SIDNEY E. HARRIS
<Table>
<Caption>
# of Shares % of Outstanding Shares % of Shares Present
----------------- ----------------------- -------------------
Affirmative............................. 8,643,726,038.293 57.611% 99.782%
Withhold................................ 18,880,556.640 .126% .218%
----------------- ------ -------
Total................................... 8,662,606,594.933 57.737% 100.000%
</Table>
WARREN Y. JOBE
<Table>
<Caption>
# of Shares % of Outstanding Shares % of Shares Present
----------------- ----------------------- -------------------
Affirmative............................. 8,643,699,091.683 57.611% 99.782%
Withhold................................ 18,907,503.250 .126% .218%
----------------- ------ -------
Total................................... 8,662,606,594.933 57.737% 100.000%
</Table>
CLARENCE H. RIDLEY
<Table>
<Caption>
# of Shares % of Outstanding Shares % of Shares Present
----------------- ----------------------- -------------------
Affirmative............................. 8,643,065,943.353 57.607% 99.774%
Withhold................................ 19,540,651.580 .130% .226%
----------------- ------ -------
Total................................... 8,662,606,594.933 57.737% 100.000%
</Table>
JAMES O. ROBBINS
<Table>
<Caption>
# of Shares % of Outstanding Shares % of Shares Present
----------------- ----------------------- -------------------
Affirmative............................. 8,643,422,544.023 57.609% 99.779%
Withhold................................ 19,184,050.910 .128% .221%
----------------- ------ -------
Total................................... 8,662,606,594.933 57.737% 100.000%
</Table>
111
JONATHAN T. WALTON
<Table>
<Caption>
# of Shares % of Outstanding Shares % of Shares Present
----------------- ----------------------- -------------------
Affirmative............................. 8,647,114,982.373 57.634% 99.821%
Withhold................................ 15,491,612.560 .103% .179%
----------------- ------ -------
Total................................... 8,662,606,594.933 57.737% 100.000%
</Table>
CHARLES D. WINSLOW
<Table>
<Caption>
# of Shares % of Outstanding Shares % of Shares Present
----------------- ----------------------- -------------------
Affirmative............................. 8,643,530,202.353 57.610% 99.780%
Withhold................................ 19,076,392.580 .127% .220%
----------------- ------ -------
Total................................... 8,662,606,594.933 57.737% 100.000%
</Table>
A special Meeting of the Shareholders of the Seix Funds, Inc. was held on
September 23, 2004. At the meeting, shareholders voted on and approved the
following proposals:
Proposal 1: Approval of the Agreement and Plan of Reorganization, which provides
for: (1) the transfer of all of the assets and liabilities of each
portfolio of the Seix Funds, Inc. in exchange for shares of the
corresponding series of the Trust; (2) the distribution of the
Trust's shares so received to shareholders of the corresponding Seix
Fund; and (3) the termination under state law of the Seix Funds.
Proposal 2: Approval of a new investment advisory agreement between Trusco
Capital Management, Inc. and the Seix Funds on behalf of each Seix
Fund.
The results of this meeting are presented below:
<Table>
<Caption>
Proposal 1: For Against Abstain Total
- ----------- ---------- ------- --------- ----------
Seix Core Bond Fund......................................... 4,060,433 -- 117 4,060,550
Seix Intermediate Bond Fund................................. 2,910,988 -- -- 2,910,988
Seix High Yield Fund........................................ 82,585,863 44,534 1,225,616 83,856,013
Seix Limited Duration Fund.................................. 11,824,034 -- -- 11,824,034
</Table>
<Table>
<Caption>
Proposal 2: For Against Abstain Total
- ----------- ---------- ------- --------- ----------
Seix Core Bond Fund......................................... 4,060,433 -- 117 4,060,550
Seix Intermediate Bond Fund................................. 2,910,988 -- -- 2,910,988
Seix High Yield Fund........................................ 82,630,397 -- 1,225,616 83,856,013
Seix Limited Duration Fund.................................. 11,824,034 -- -- 11,824,034
</Table>
Proxy Voting
Information regarding the policies and procedures that the Funds use to
determine how to vote proxies relating to portfolio securities during the period
ended March 31, 2005 is available (1) without charge, upon request, by calling
1-800-428-6970, or on the Funds' website at www.sticlassicfunds.com, and (2) on
the Securities and Exchange Commission's website at www.sec.gov.
Other Information
The Funds file a complete list of their portfolio holdings with the Securities
and Exchange Commission for the first and third quarters of each fiscal year on
Form N-Q. Forms N-Q are available free of charge on the Securities and Exchange
Commission's website at www.sec.gov. You may also review, or for a fee, copy
those documents by visiting the Securities and Exchange Commission's Public
Reference Room in Washington, D.C. Information on the operation of the Public
Reference Room may be obtained by calling the Securities and Exchange Commission
at 1-800-SEC-0330.
112
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113
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114
(This page intentionally left blank)
115
ITEM 2. CODE OF ETHICS.
Disclose whether, as of the end of the period covered by the report, the
registrant has adopted a code of ethics that applies to the registrant's
principal executive officer, principal financial officer, principal
accounting officer or controller, or persons performing similar functions,
regardless of whether these individuals are employed by the registrant or a
third party. If the registrant has not adopted such a code of ethics,
explain why it has not done so. THE REGISTRANT HAS ADOPTED A CODE OF ETHICS
THAT APPLIES TO THE REGISTRANT'S PRINCIPAL EXECUTIVE OFFICER, PRINCIPAL
FINANCIAL OFFICER, PRINCIPAL ACCOUNTING OFFICER OR CONTROLLER, OR PERSONS
PERFORMING SIMILAR FUNCTIONS. THIS CODE OF ETHICS IS INCLUDED AS EXHIBIT 12
(A)(1).
The registrant must briefly describe the nature of any amendment, during
the period covered by the report, to a provision of its 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 definition enumerated in paragraph (b) of
this Item. The registrant must file a copy of any such amendment as an
exhibit pursuant to Item 11(a)(1), unless the registrant has elected to
satisfy paragraph (f) of this Item by posting its code of ethics on its
website pursuant to paragraph (f)(2) of this Item, or by undertaking to
provide its code of ethics to any person without charge, upon request,
pursuant to paragraph (f)(3) of this Item.
If the registrant has, during the period covered by the report, granted a
waiver, 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 items set forth in paragraph (b) of this Item, the
registrant must briefly describe the nature of the waiver, the name of the
person to whom the waiver was granted, and the date of the waiver.
DURING THE PERIOD COVERED BY THE REPORT, WITH RESPECT TO THE REGISTRANT'S
CODE OF ETHICS THAT APPLIES TO ITS PRINCIPAL EXECUTIVE OFFICER, PRINCIPAL
FINANCIAL OFFICER, PRINCIPAL ACCOUNTING OFFICER OR CONTROLLER, OR PERSONS
PERFORMING SIMILAR FUNCTIONS; THERE HAVE BEEN NO AMENDMENTS TO, NOR ANY
WAIVERS GRANTED FROM, A PROVISION THAT RELATES TO ANY ELEMENT OF THE CODE
OF ETHICS DEFINITION ENUMERATED IN PARAGRAPH (B) OF THIS ITEM 2.
ITEM 3. AUDIT COMMITTEE FINANCIAL EXPERT.
(a) (1) Disclose that the registrant's board of directors has
determined that the registrant either:
(i) Has at least one audit committee financial expert serving
on its audit committee; or
(ii) Does not have an audit committee financial expert serving
on its audit committee.
(2) If the registrant provides the disclosure required by
paragraph (a)(1)(i) of this Item, it must disclose the name of the
audit committee financial expert and whether that person is
"independent." In order to be considered "independent" for
purposes of this Item, a member of an audit committee may not,
other than in his or her capacity as a member of the audit
committee, the board of directors, or any other board committee:
(i) Accept directly or indirectly any consulting, advisory,
or other compensatory fee from the issuer; or
(ii) Be an "interested person" of the investment company as
defined in Section 2(a)(19) of the Act (15 U.S.C.
80a-2(a)(19)).
(3) If the registrant provides the disclosure required by
paragraph (a)(1)(ii) of this Item, it must explain why it does not
have an audit committee financial expert.
3(a)(1) THE REGISTRANT'S BOARD OF TRUSTEES HAS DETERMINED THAT THE REGISTRANT
HAS AT LEAST ONE AUDIT COMMITTEE FINANCIAL EXPERT SERVING ON ITS AUDIT
COMMITTEE.
3(a)(2) THE AUDIT COMMITTEE FINANCIAL EXPERT IS WARREN Y. JOBE, WHO IS
"INDEPENDENT" FOR PURPOSES OF THIS ITEM 3 OF FORM N-CSR.
ITEM 4. PRINCIPAL ACCOUNTANT FEES AND SERVICES.
Information presented in Item 4 represents amounts paid by the registrant,
including amounts paid for the services to the Funds included in the
accompanying report (see Item 1).
(a) Disclose, under the caption Audit Fees, 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.
Audit Fees: the aggregate fees billed for each of the last two fiscal
years for professional services rendered by PricewaterhouseCoopers LLP
for the audit of the Trust's annual financial statements or services
that are normally provided by the accountant in connection with
statutory and regulatory filings or engagements for those fiscal years
were as follows:
2004 $563,000
2005 $700,260
(b) Disclose, under the caption Audit-Related Fees, 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. Registrants shall describe the nature of the
services comprising the fees disclosed under this category.
Audit-Related Fees: the aggregate fees billed for each of the last two
fiscal years for assurance and related services by
PricewaterhouseCoopers LLP that are reasonably related to the
performance of the audit of the Trust's financial statements and are
not reported under Item 1 were as follows:
2004 $72,000 (1)
2005 $94,500 (1)
Notes:
(1) Services related to security count examinations
under Rule 17f-2 of the Investment Company Act.
(c) Disclose, under the caption Tax Fees, 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.
Registrants shall describe the nature of the services comprising the fees
disclosed under this category.
Tax Fees: the aggregate fees billed for each of the last two fiscal
years for professional services rendered by PricewaterhouseCoopers LLP
for tax compliance, tax advice, and tax planning were as follows:
2004 $0
2005 $0
(d) Disclose, under the caption All Other Fees, 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. Registrants shall describe the nature of the services
comprising the fees disclosed under this category.
All Other Fees: the aggregate fees billed for each of the last two
fiscal years for products and services provided by
PricewaterhouseCoopers LLP to the Trust, other than the services
reported in Items 1 through 3.
2004 $0
2005 $0
(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.
THE TRUST'S AUDIT COMMITTEE CHARTER PROVIDES THAT THE PRINCIPAL
RESPONSIBILITIES OF THE COMMITTEE SHALL INCLUDE APPROVING AUDIT AND
NON-AUDIT SERVICES AN INDEPENDENT ACCOUNTING FIRM PROVIDES TO THE TRUST
(AND CERTAIN TRUST SERVICE PROVIDERS) AS REQUIRED BY AND IN ACCORDANCE
WITH APPLICABLE LAW. THE COMMITTEE IS AUTHORIZED TO DEVELOP POLICIES
AND PROCEDURES, IN ACCORDANCE WITH APPLICABLE LAW, THAT PROVIDE FOR THE
ADVANCE PRE-APPROVAL OF SOME OR ALL AUDIT AND NON-AUDIT SERVICES. THE
COMMITTEE IS FURTHER AUTHORIZED TO DELEGATE ITS RESPONSIBILITY TO
PRE-APPROVE AUDIT AND NON-AUDIT SERVICES TO ONE OR MORE MEMBERS OF THE
COMMITTEE, IN ACCORDANCE WITH APPLICABLE LAW.
(2) Disclose 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.
2004 0%
2005 0%
(f) If greater than 50 percent, disclose 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.
NOT APPLICABLE.
(g) Disclose 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.
The aggregate non-audit fees billed by PricewaterhouseCoopers LLP for
services rendered to the Funds, and rendered to the Funds 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 Funds for each of the last two fiscal years of the registrant were
as follows:
2004 $ 1,795,277 (1)
2005 $ 3,411,364 (1)
(1) Non-audit services relate principally to certain technical
accounting advice on financial products of the Bank;
Sarbanes-Oxley 404 implementation; review of certain
registration statements and regulatory filings; issuance of
comfort letters; and, tax compliance services to other
entities controlled by SunTrust Banks, Inc.
(h) Disclose whether the registrant's audit committee of the board of
directors has considered whether the provision of nonaudit services that were
rendered to the registrant's investment adviser (not including any subadviser
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.
THE AUDIT COMMITTEE HAS CONSIDERED THAT THE PROVISION OF NON-AUDIT
SERVICES THAT WERE RENDERED TO THE REGISTRANT'S INVESTMENT ADVISER (NOT
INCLUDING ANY SUBADVISER 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.
(a) If the registrant is a listed issuer as defined in Rule 10A-3
under the Exchange Act (17CFR 240.10A-3), state whether or not
the registrant has a separately-designated standing audit
committee established in accordance with Section 3(a)(58)(A) of
the Exchange Act (15 U.S.C. 78c(a)(58)(A)). If the registrant has
such a committee, however designated, identify each committee
member. If the entire board of directors is acting as the
registrant's audit committee as specified in Section 3(a)(58)(B)
of the Exchange Act (15 U.S.C. 78c(a)(58)(B)), so state.
(b) If applicable, provide the disclosure required by Rule 10A-3(d)
under the Exchange Act (17CFR 240.10A-3(d)) regarding an
exemption from the listing standards for all audit committees.
NOT APPLICABLE.
ITEM 6. SCHEDULE OF INVESTMENTS.
File Schedule I - Investments in securities of unaffiliated issuers as of the
close of the reporting period as set forth in Section 210.12-12 of Regulation
S-X, unless the schedule is included as part of the report to shareholders filed
under Item 1 of this Form.
NOT APPLICABLE.
ITEM 7. DISCLOSURE OF PROXY VOTING POLICIES AND PROCEDURES FOR CLOSED-END
MANAGEMENT INVESTMENT COMPANIES.
A closed-end management investment company that is filing an annual
report on this Form N-CSR must, unless it invests exclusively in non-voting
securities, describe the policies and procedures that it uses to determine how
to vote proxies relating to portfolio securities, including the procedures that
the company uses when a vote presents a conflict between the interests of its
shareholders, on the one hand, and those of the company's investment adviser;
principal underwriter; or any affiliated person (as defined in Section 2(a)(3)
of the Investment Company Act of 1940 (15 U.S.C. 80a-2(a)(3)) and the rules
thereunder) of the company, its investment adviser, or its principal
underwriter, on the other. Include any policies and procedures of the company's
investment adviser, or any other third party, that the company uses, or that are
used on the company's behalf, to determine how to vote proxies relating to
portfolio securities.
NOT APPLICABLE.
ITEM 8. PORTFOLIO MANAGERS OF CLOSED-END MANAGEMENT INVESTMENT COMPANIES.
If the registrant is a closed-end management investment company that is filing
an annual report on this Form N-CSR, provide the information specified in
paragraphs (a) and (b) of this Item with respect to portfolio managers.
NOT APPLICABLE.
ITEM 9. PURCHASES OF EQUITY SECURITIES BY CLOSED-END MANAGEMENT INVESTMENT
COMPANY AND AFFILIATED PURCHASERS.
If the registrant is a closed-end management investment company, provide the
information specified in paragraph (b) of this Item with respect to any purchase
made by or on behalf of the registrant or any "affiliated purchaser," as defined
in Rule 10b-18(a)(3) under the Exchange Act (17 CFR 240.10b-18(a)(3)), of shares
or other units of any class of the registrant's equity securities that is
registered by the registrant pursuant to Section 12 of the Exchange Act (15
U.S.C. 781).
NOT APPLICABLE.
ITEM 10. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS.
Describe any material changes to the procedures by which shareholders may
recommend nominees to the registrant's board of directors, where those changes
were implemented after the registrant last provided disclosure in response to
the requirements of Item 7(d)(2)(ii)(G) of Schedule 14A (17 CFR 240.14a-101), or
this Item.
THE TRUST, EFFECTIVE SEPTEMBER 28, 2004, ADOPTED PROCEDURES BY WHICH
SHAREHOLDERS MAY RECOMMEND NOMINEES TO THE REGISTRANT'S BOARD OF TRUSTEES.
ITEM 11. CONTROLS AND PROCEDURES.
(a) Disclose the conclusions of the registrant's principal executive
and principal financial officers, or persons performing similar functions,
regarding the effectiveness of the registrant's disclosure controls and
procedures (as defined in Rule 30a-3(c) under the Act (17 CFR 270.30a-3(c))) as
of a date within 90 days of the filing date of the report that includes the
disclosure required by this paragraph, based on the evaluation of these controls
and procedures required by Rule 30a-3(b) under the Act (17 CFR 270.30a-3(b)) and
Rules 13a-15(b) or 15d-15(b) under the Exchange Act (17 CFR 240.13a-15(b) or
240.15d-15(b)).
THE REGISTRANT'S PRINCIPAL EXECUTIVE OFFICER AND PRINCIPAL FINANCIAL OFFICER
HAVE CONCLUDED, BASED ON THEIR EVALUATION OF THE REGISTRANT'S DISCLOSURE
CONTROLS AND PROCEDURES AS CONDUCTED WITHIN 90 DAYS OF THE FILING DATE OF THIS
REPORT, THAT THESE DISCLOSURE CONTROLS AND PROCEDURES ARE ADEQUATELY DESIGNED
AND ARE OPERATING EFFECTIVELY TO ENSURE THAT INFORMATION REQUIRED TO BE
DISCLOSED BY THE REGISTRANT ON FORM N-CSR IS (I) ACCUMULATED AND COMMUNICATED TO
THE INVESTMENT COMPANY'S MANAGEMENT, INCLUDING ITS CERTIFYING OFFICERS, TO ALLOW
TIMELY DECISIONS REGARDING REQUIRED DISCLOSURE; AND (II) RECORDED, PROCESSED,
SUMMARIZED AND REPORTED WITHIN THE TIME PERIODS SPECIFIED IN THE SECURITIES AND
EXCHANGE COMMISSION'S RULES AND FORMS.
(b) Disclose any change in the registrant's internal control over financial
reporting (as defined in Rule 30a-3(d) under the Act (17 CFR 270.30a-3(d)) that
occurred during the second fiscal quarter of the period covered by this report
that has materially affected, or is reasonably likely to materially affect, the
registrant's internal control over financial reporting.
THERE WERE NO CHANGES IN THE REGISTRANT'S INTERNAL CONTROL OVER FINANCIAL
REPORTING 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) File the exhibits listed below as part of this Form. Letter or
number the exhibits in the sequence indicated.
(a)(1) Any code of ethics, or amendment thereto, that is the subject of
the disclosure required by Item 2, to the extent that the registrant intends to
satisfy the Item 2 requirements through filing of an exhibit.
THE CODE OF ETHICS THAT IS THE SUBJECT OF THE DISCLOSURE REQUIRED BY ITEM 2 IS
ATTACHED HERETO.
(a)(2) A separate certification for each principal executive officer
and principal financial officer of the registrant as required by Rule 30a-2(a)
under the Act (17 CFR 270.30a-2). CERTIFICATIONS PURSUANT TO RULE 30A-2(A) ARE
ATTACHED HERETO.
(a)(3) Any written solicitation to purchase securities under Rule 23c-1
under the Act (17 CFR 270.23c-1) sent or given during the period covered by the
report by or on behalf of the registrant to 10 or more persons. NOT APPLICABLE.
(b) If the report is filed under Section 13(a) or 15(d) of the Exchange
Act, provide the certifications required by rule 30a-2(b) under the Act as an
exhibit. A certification furnished pursuant to this paragraph will not be deemed
"filed" for purposes of Section 18 of the Exchange Act, or otherwise subject to
the liability of that section. Such certification will not be deemed to be
incorporated by reference into any filing under the Securities Act of 1933 or
the Exchange Act, except to the extent that the registrant incorporates it by
reference. CERTIFICATIONS PURSUANT TO RULE 30A-2(B) ARE FURNISHED HEREWITH.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934 and
the Investment Company Act of 1940, the registrant has duly caused this report
to be signed on its behalf by the undersigned, thereunto duly authorized.
(Registrant) STI Classic Funds
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By (Signature and Title)* /s/ David Hughes, Treasurer
------------------------------------------------------
David Hughes, Treasurer
Date June 3, 2005
---------------------
Pursuant to the requirements of the Securities Exchange Act of 1934 and
the Investment Company Act of 1940, this report has been signed below by the
following persons on behalf of the registrant and in the capacities and on the
dates indicated.
By (Signature and Title)* /s/ R. Jeffrey Young, President
------------------------------------------------------
R. Jeffrey Young, President
Date June 3, 2005
--------------------------
By (Signature and Title)* /s/ David Hughes, Treasurer
------------------------------------------------------
David Hughes, Treasurer
Date June 3, 2005
---------------------
* Print the name and title of each signing officer under his or her signature.